<PAGE>
Phoenix Equity Planning Corporation
PO Box 2200
Enfield CT 06083-2200
PRSRT STD
U.S. Postage PAID
Springfield, MA
Permit No. 444
PXP 394 (12/99)
<PAGE>
Phoenix Investment Partners
|
|
| Annual Report
|
|
| October 31, 1999
|
|
|
| --------------------
|--- Duff & Phelps > Phoenix-Duff & Phelps
| -------------------- Core Bond Fund
|
|
|
| --------------------
|--- ENGEMANN > Phoenix-Engemann
| -------------------- Aggressive Growth Fund
|
|
|
|
|
| > Phoenix-Engemann
| Capital Growth Fund
|
|
|
|
|
|--- | Goodwin | > Phoenix-Goodwin
| High Yield Fund
|
| > Phoenix-Goodwin
| Money Market Fund
|
|
|
|
|
|--- Oakhurst > Phoenix-Oakhurst
| Balanced Fund
[LOGO] PHOENIX
INVESTMENT PARTNERS
<PAGE>
Table of Contents
The Phoenix-Duff & Phelps Core Bond Fund Series ........................... 2
The Phoenix-Engemann Aggressive Growth Fund Series ........................ 9
The Phoenix-Engemann Capital Growth Fund Series ........................... 17
The Phoenix-Goodwin High Yield Fund Series ................................ 25
The Phoenix-Goodwin Money Market Fund Series .............................. 35
The Phoenix-Oakhurst Balanced Fund Series ................................. 42
Notes to Financial Statements ............................................. 55
<PAGE>
Message from the President
Dear Shareholder:
[Photo of President]
We are pleased to provide this annual report for the Phoenix Series Funds
for the 12 months ended October 31, 1999. On the following pages, your Funds'
portfolio managers review market events over the last year and discuss their
investment strategy. We hope you find their comments informative.
As the year comes to a close, this may be a good time to keep in mind a few
"basics of investing" to help you take a long-term market perspective.
Remain focused on your long-term investment strategy. Redeeming an
investment when the market drops or a fund's share price falls can work against
you over time. You could miss out on opportunities for your investment to grow
when the market or the fund's share price begins to move up. And over time, that
could make a big difference in how successful you are in achieving your
financial goals.
Diversify your portfolio. Spreading your investments among different asset
classes and investment styles helps reduce risk. If one type of investment
doesn't perform well over a certain time period, it may be offset by the good
results of another investment.
Take advantage of dollar-cost averaging. You can make market fluctuations
work to your advantage by investing a set amount of money at regular intervals.
This is called dollar-cost averaging, and it means that when prices are low you
will be buying more units and when prices are high, you'll buy less. Periodic
investment plans do not assure a profit or protect against a loss in declining
markets. This type of plan involves continuous investments in securities
regardless of fluctuating price levels. Investors should consider their
financial ability to continue purchases through periods of low price levels.
If you have any questions, please contact your financial advisor or call us
at 1-800-243-1574, between 8:00 a.m. and 6:00 p.m. Eastern Time, Monday through
Friday.
Sincerely,
Philip R. McLoughlin
November 19, 1999
- --------------------------------------------------------------------------------
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>
Phoenix-Duff & Phelps Core Bond Fund Series
A Discussion with the Fund's Portfolio Management Team
Q: What is the Fund's investment objective?
A: In August, shareholders of the former Phoenix-Goodwin U.S. Government
Securities Fund approved the Phoenix Investment Partners Board of Trustees'
recommendation that the investment objective of the Fund be changed to capital
appreciation as well as current income through investments in investment-grade
securities, primarily corporate bonds. The Fund is appropriate for investors
seeking a total return in excess of the bond market as defined by the Lehman
Brothers Aggregate Index. The Fund also strives to maintain an overall high
credit quality rating of at least AA-. Shareholders also approved the
appointment of Duff & Phelps Investment Management Co. as the investment adviser
to the Fund. Duff & Phelps Investment Management Co., a subsidiary of Phoenix
Investment Partners, Ltd., currently manages over $18 billion in high quality
fixed-income securities for institutions and high-net-worth individuals. To
reflect the new investment objective and adviser name, the Fund was renamed
Phoenix-Duff & Phelps Core Bond Fund.
Q: What was the Fund's return for the fiscal year ended October 31, 1999?
A: Class A shares had a negative return of (1.97%) and Class B shares had a
negative return of (2.77%) compared with a negative return of (1.55%) for the
Lehman Brothers U.S. Treasury Index,10 which the Fund was managed against. The
Fund's former benchmark index, the Lehman Brothers Government Bond Index9, had a
negative return of (1.21%). The new benchmark for the Phoenix-Duff & Phelps Core
Bond Fund is the Lehman Aggregate Bond Index8, which had a return of 0.53% for
the 12 months ended October 31, 1999. All performance figures assume
reinvestment of distributions and exclude the effect of sales charges.
Q: What factors contributed to performance?
A: Above-average relative performance during 1999 was offset by poor performance
during the last two months of 1998, leading to slightly below-average relative
performance for the fiscal year. The lingering effects of the 1998 credit market
disruption, coupled with our strategy to de-emphasize Treasuries in favor of
other spread sectors, led to a poor start for the fiscal year. However, our
decision to allocate a large portion of the portfolio to Agency mortgage-backed
securities during the 1999 portion of the fiscal reporting period contributed
positively to performance.
2
<PAGE>
Q: What is Duff & Phelps Investment Management Co.'s core fixed-income
philosophy?
A: Duff & Phelps Investment Management Co. believes that diversified and
controlled exposure to a variety of risks associated with the fixed-income
markets provides the best opportunity to achieve above-market returns over the
long term. Duff & Phelps employs intensive fundamental research to determine the
appropriate mix of active sector rotation, opportunistic investing in specific
issues, and exposure to changes in interest rates. The sector allocation
decision is derived from assessing the relative value of industries, credit
trends, and supply and demand. Duff & Phelps also relies on opportunistic issue
selection to enhance sector decisions. A bottom-up strategy is employed that
uses rigid credit quality analysis and an assessment of relative default risk.
Finally, our fixed-income team uses interest rate forecasting to determine the
appropriate level of price risk that the Fund should incur. This forecast is
based on analysis of domestic and international economic activity.
Q: How have you restructured the portfolio to reflect the new investment
objective?
A: We are opportunistically restructuring the Phoenix-Duff & Phelps Core Bond
Fund to align it with the firm's fixed-income philosophy. However, market
liquidity has diminished due to Y2K concerns. We expect the restructuring to be
completed over the next quarter. We would expect investment-grade corporate
exposure to increase and the mortgage coupon mix to shift during this time
period. We would also anticipate a reduction in the taxable municipal bond
position. In addition to the above sector changes, we anticipate a change in the
overall price risk of the portfolio as a result of our interest rate strategy.
Q: What is Duff & Phelps current investment outlook?
A: Our long-term interest rate outlook is positive. We believe that the domestic
economy will slow in the year 2000 and that inflation will remain benign. With
growth slowing to a more manageable level, we expect the Federal Reserve to
discontinue its tightening bias, which should allow interest rates to trend
lower. However, there is near-term concern over exaggerated growth due to Y2K
inventory-building that has caused us to be somewhat cautious. The outlook on
spread product also remains positive. Spread products continue to trade near
their historical wide ranges versus Treasuries, despite strong fundamental
underpinnings. We currently are recommending an overweighted position in spread
product sectors.
November 18, 1999
<PAGE>
Phoenix-Duff & Phelps Core Bond Fund Series
<TABLE>
<CAPTION>
Average Annual Total Returns(1) PERIODS ENDING 10/31/99
INCEPTION INCEPTION
1 YEAR 5 YEAR 10 YEAR TO 10/31/99 DATE
------ ------ ------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Class A Shares at NAV(2) (1.97)% 6.44% 6.73% -- --
Class A Shares at POP(3) (6.63) 5.41 6.21 -- --
Class B Shares at NAV(2) (2.77) 5.63 -- 4.22% 2/24/94
Class B Shares with CDSC(4) (6.45) 5.63 -- 4.22 2/24/94
Class C Shares at NAV(2) -- -- -- 0.53 10/12/99
Class C Shares with CDSC(4) -- -- -- (0.47) 10/12/99
Lehman Brothers Aggregate Bond Index(8) 0.53 7.94 7.88 Note 5 Note 5
Lehman Brothers Government Bond Index(9) (1.21) 7.69 7.69 Note 6 Note 6
</TABLE>
1 Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
2 "NAV" (Net Asset Value) total returns do not include the effect of any
sales charge.
3 "POP" (Public Offering Price) total returns include the effect of the
maximum front-end 4.75% sales charge.
4 CDSC (contingent deferred sales charge) is applied to redemptions of
certain classes of shares that do not have a sales charge applied at the
time of purchase. CDSC charges for B shares decline from 5% to 0% over a
five year period. CDSC charges for C shares are 1% in the first year and 0%
thereafter.
5 Index performance is 6.40% for Class B (since 2/28/94) and 0.37% for Class
C (since 9/30/99), respectively.
6 Index performance is 6.18% for Class B (since 2/28/94) and 0.16% for Class
C (since 9/30/99), respectively.
<PAGE>
7 This chart illustrates POP returns on Class A shares for ten years. Returns
on Class B and Class C shares will vary due to differing sales charges.
8 The Lehman Brothers Aggregate Bond Index is an unmanaged, commonly used
measure of broad bond market total return performance. The index's
performance does not reflect sales charges.
9 The Lehman Brothers Government Bond Index is an unmanaged, commonly used
measure of total return performance for government bonds. The index's
performance does not reflect sales charges.
All returns represent past performance which may not be indicative of
future performance. The investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost. Indices are not available
for direct investment.
10 The Lehman Brothers U.S. Treasury Index is an unmanaged, commonly used
measure of total return performance for U.S. Treasury securities.
Growth of $10,000 PERIODS ENDING 10/31/99
[Edgar representation of data points used in printed graphics]
<TABLE>
<CAPTION>
Phoenix-Duff & Phelps Lehman Brothers Lehman Brothers
Core Bond A(7) Government Bond Index (8) Aggregate Bond Index (9)
<S> <C> <C> <C>
10/31/1989 $ 9,525 $10,000 $10,000
10/31/1990 $10,015 $10,593 $10,631
10/31/1991 $11,446 $12,140 $12,312
10/30/1992 $12,666 $10,392 $13,523
10/28/1993 $13,840 $15,152 $15,128
10/31/1994 $13,369 $14,476 $14,573
10/31/1995 $15,349 $16,700 $16,854
10/31/1996 $15,971 $17,555 $17,840
10/31/1997 $17,225 $19,074 $19,426
10/30/1998 $18,631 $21,226 $21,239
10/29/1999 $18,254 $20,970 $21,352
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
10/31/89 in Class A shares and reflects the maximum sales charge of 4.75% on the
initial investment. Performance assumes dividends and capital gains are
reinvested. The performance of other share classes will be greater or less than
that shown based on differences in inception dates, fees and sales charges.
Sector Weightings 10/31/99
As a percentage of bond holdings
[PIE CHART GRAPHIC OMITTED]
O Agency Mortgage-Backed 69%
O Corporate 12
O Municipal 9
O US Government 7
O Non-Agency Mortgage-Backed 2
O Asset-Backed 1
3
<PAGE>
Phoenix-Duff & Phelps Core Bond Fund Series
INVESTMENTS AT OCTOBER 31, 1999
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ------- -----------
U.S. GOVERNMENT SECURITIES--6.1%
U.S. Treasury Notes 6.25%, 10/31/01(d) .... AAA $ 6,000 $ 6,047,976
U.S. Treasury Notes 5.75%, 4/30/03 ........ AAA 3,500 3,477,095
- -------------------------------------------------------------------------------
Total U.S. Government Securities
(Identified cost $9,632,500) 9,525,071
- -------------------------------------------------------------------------------
AGENCY MORTGAGE-BACKED SECURITIES--59.7%
Fannie Mae 10%, 5/25/04 ................... AAA 1,206 1,256,178
Fannie Mae 6.75%, 5/25/19 ................. AAA 1,000 989,782
Fannie Mae 6.75%, 6/25/21 ................. AAA 1,000 989,956
Fannie Mae TBA 6.50%, 5/15/13 ............. AAA 4,000 3,918,750
Fannie Mae TBA 6%, 10/19/13 ............... AAA 10,650 10,227,328
GNMA 8.50%, '01-'22 ....................... AAA 181 183,950
GNMA 8%, 9/15/05 .......................... AAA 82 83,834
GNMA 8%, 9/15/06 .......................... AAA 11 10,878
GNMA 7.50%, 12/15/25 ...................... AAA 5,182 5,198,375
GNMA 7.50%, 10/15/26 ...................... AAA 1,232 1,234,747
GNMA 7%, 1/15/28 .......................... AAA 7,454 7,310,014
GNMA 7%, 3/15/28 .......................... AAA 9,822 9,631,494
GNMA 6.50%, 9/15/28 ....................... AAA 4,921 4,701,199
GNMA 6.50%, 9/15/28 ....................... AAA 7,601 7,261,752
GNMA 6.50%, 9/15/28 ....................... AAA 17,428 16,648,849
GNMA 6%, 1/15/29 .......................... AAA 10,563 9,800,548
GNMA 6%, 1/15/29 .......................... AAA 3,579 3,320,621
GNMA 6%, 1/15/29 .......................... AAA 8,842 8,203,559
GNMA 7.50%, 1/15/29 ....................... AAA 2,578 2,584,903
- -------------------------------------------------------------------------------
Total Agency Mortgage-Backed Securities
(Identified cost $97,487,004) 93,556,717
- -------------------------------------------------------------------------------
4
<PAGE>
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ------- -----------
MUNICIPAL BONDS--7.9%
California--3.7%
San Francisco City & County Redevelopment
Agency Revenue Taxable 9.75%,
6/1/13(d) ................................. AAA $ 4,800 $ 5,868,000
Illinois--2.6%
Chicago Public Building Commission Special
Obligation Taxable 6.65%, 1/1/01(c) ....... AAA 1,000 1,002,500
Chicago Public Building Commission
Special Obligation Taxable 7%,
1/1/06(c) ................................. AAA 2,000 2,005,000
Chicago Public Building Commission
Special Obligation Taxable 7%,
1/1/07(c) ................................. AAA 1,050 1,052,625
------------
4,060,125
------------
Massachusetts--1.6%
Massachusetts Port Authority Revenue
Taxable Series C 6.35%, 7/1/06 ............ AA- 1,000 962,500
Massachusetts Port Authority Revenue
Taxable Series C 6.45%, 7/1/09 ............ AA- 1,575 1,496,250
------------
2,458,750
------------
- --------------------------------------------------------------------------------
Total Municipal Bonds
(Identified cost $12,826,194) 12,386,875
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES--0.8%
ContiMortgage Home Equity Loan
Trust 98-1, B 7.86%, 4/15/29 .............. BBB- 1,470 1,344,590
- --------------------------------------------------------------------------------
Total Asset-Backed Securities
(Identified cost $1,478,728) 1,344,590
- --------------------------------------------------------------------------------
See Notes to Financial Statements
<PAGE>
Phoenix-Duff & Phelps Core Bond Fund Series
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ------- -----------
CORPORATE BONDS--10.5%
Banks (Money Center)--1.8%
Citicorp Capital I 7.933%, 2/15/27 .......... A $ 3,000 $2,865,000
Computers (Software & Services)--2.6%
Electronic Data Systems Corp. 7.125%,
10/15/09 .................................... A+ 4,000 4,005,000
Consumer Finance--2.3%
Ford Motor Credit Co. 5.80%, 1/12/09 A 4,000 3,615,000
Telecommunications (Long Distance)--3.8%
MCI WorldCom, Inc. 7.75%, 4/1/07(d) ......... A 3,000 3,108,750
US West Capital Funding, Inc. 6.375%,
7/15/08(d) .................................. A- 3,000 2,812,500
- --------------------------------------------------------------------------------
Total Corporate Bonds
(Identified cost $16,282,427) 16,406,250
- --------------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED
SECURITIES--1.9%
J.P. Morgan Commercial Mortgage Finance
Corp. 97-C5, A2 7.069%, 9/15/29 ............. AAA 3,000 2,997,210
- --------------------------------------------------------------------------------
Total Non-Agency Mortgage-Backed Securities
(Identified cost $2,967,664) 2,997,210
- --------------------------------------------------------------------------------
PREFERRED STOCKS--11.1%
REITS--11.1%
SHARES
------
Home Ownership Funding 2, Step-down
Pfd. 144A 13.338%(b)(e) ..................... 20,722 17,494,590
- --------------------------------------------------------------------------------
Total Preferred Stocks
(Identified cost $18,049,396) 17,494,590
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total Long-Term Investments--98.0%
(Identified cost $158,723,913) 153,711,303
- --------------------------------------------------------------------------------
<PAGE>
SHARES VALUE
-------- --------
SHORT-TERM OBLIGATIONS--9.9%
Money Market Mutual Funds--9.9%
State Street Global Advisors Seven Seas
Money Market Fund (5.07% seven day
effective yield) ............................ 15,472,142 $ 15,472,142
- --------------------------------------------------------------------------------
Total Short-Term Obligations
(Identified cost $15,472,142) 15,472,142
- --------------------------------------------------------------------------------
Total Investments--107.9%
Identified cost ($174,196,055) 169,183,445(a)
Cash and receivables, less liabilities--(7.9%) (12,422,425)
------------
NET ASSETS--100.0% $156,761,020
============
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $309,244 and gross
depreciation of $5,321,854 for federal income tax purposes. At October 31,
1999, the aggregate cost of securities for federal income tax purpose was
$174,196,055.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31,
1999, these securities amounted to a value of $17,494,590 or 11.2% of net
assets.
(c) These bonds are fully defeased by U.S. Government Treasury Obligations.
(d) All or portion segregated as collateral.
(e) Variable or step coupon security; interest rate shown reflects the rate
currently in effect.
See Notes to Financial Statements 5
<PAGE>
Phoenix-Duff & Phelps Core Bond Fund Series
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
Assets
Investment securities at value
(Identified cost $174,196,055) $ 169,183,445
Receivables
Interest 1,393,924
Fund shares sold 687,132
Prepaid expenses 3,393
-------------
Total assets 171,267,894
-------------
Liabilities
Payables
Investment securities purchased 14,078,031
Fund shares repurchased 211,982
Investment advisory fee 59,838
Transfer agent fee 44,652
Distribution fee 40,817
Financial agent fee 16,877
Trustees' fee 4,216
Accrued expenses 50,461
-------------
Total liabilities 14,506,874
-------------
Net Assets $ 156,761,020
=============
Net Assets Consist of:
Capital paid in on shares of beneficial interest 176,251,277
Undistributed net investment income 279,102
Accumulated net realized loss (14,756,749)
Net unrealized depreciation (5,012,610)
-------------
Net Assets $ 156,761,020
=============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $144,923,207) 16,032,902
Net asset value per share $9.04
Offering price per share $9.04/(1-4.75%) $9.49
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $11,737,179) 1,308,372
Net asset value and offering price per share $8.97
Class C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $100,634) 11,191
Net asset value and offering price per share $8.99
6
<PAGE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
Investment Income
Interest $ 10,170,897
Dividends 1,522,238
Security lending 89,248
------------
Total investment income 11,782,383
------------
Expenses
Investment advisory fee 796,046
Distribution fee, Class A 410,940
Distribution fee, Class B 125,177
Distribution fee, Class C 52
Financial agent fee 179,917
Transfer agent 295,560
Printing 39,412
Professional 22,708
Custodian 15,083
Trustees 16,949
Registration 20,236
Miscellaneous 8,545
------------
Total expenses 1,930,625
-------------
Net investment income 9,851,758
Net Realized and Unrealized Gain (Loss) on Investments
Net realized loss on securities (6,568,044)
Net change in unrealized appreciation (depreciation)
on investments (7,313,523)
-------------
Net loss on investments (13,881,567)
Net decrease in net assets resulting from operations ($4,029,809)
==========
See Notes to Financial Statements
<PAGE>
Phoenix-Duff & Phelps Core Bond Fund Series
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/99 10/31/98
----------- ----------
<S> <C> <C>
From Operations
Net investment income (loss) $ 9,851,758 $ 10,062,931
Net realized gain (loss) (6,568,044) 4,600,713
Net change in unrealized appreciation (depreciation) (7,313,523) (337,053)
------------- -------------
Increase (decrease) in net assets resulting from operations (4,029,809) 14,326,591
------------- -------------
From Distributions to Shareholders
Net investment income, Class A (9,689,868) (10,374,488)
Net investment income, Class B (665,018) (383,148)
Net investment income, Class C (279) --
In excess of net investment income, Class A (761,865) (466,829)
In excess of net investment income, Class B (52,287) (17,241)
In excess of net investment income, Class C (22) --
------------- -------------
Decrease in net assets from distributions to shareholders (11,169,339) (11,241,706)
------------- -------------
From Share Transactions
Class A
Proceeds from sales of shares (5,788,523 and 4,455,347 shares, respectively) 54,202,911 43,833,411
Net asset value of share issued from reinvestment of distributions
(655,169 and 659,479 shares, respectively) 6,141,277 6,426,680
Cost of shares repurchased (8,786,721 and 5,613,314 shares, respectively) (81,913,552) (54,907,874)
------------- -------------
Total (21,569,364) (4,647,783)
------------- -------------
Class B
Proceeds from sales of shares (657,595 and 1,026,865 shares, respectively) 6,129,389 10,046,636
Net asset value of share issued from reinvestment of distributions (38,674 358,715 226,393
and 23,348 shares, respectively)
Cost of shares repurchased ( 709,025 and 283,214 shares, respectively) (6,589,226) (2,751,425)
------------- -------------
Total (101,122) 7,521,604
------------- -------------
Class C
Proceeds from sales of shares ( 11,157 and 0 shares, respectively) 100,080 --
Net asset value of share issued from reinvestment of distributions (34 301 --
and 0 shares, respectively)
Cost of shares repurchased ( 0 and 0 shares, respectively) -- --
------------- -------------
Total 100,381 0
------------- -------------
Increase (decrease) in net assets from share transactions (21,570,105) 2,873,821
------------- -------------
Net increase (decrease) in net assets (36,769,253) 5,958,706
------------- -------------
Net Assets
Beginning of period 193,530,273 187,571,567
------------- -------------
End of period [including undistributed net investment income (loss)
of $279,102 and $503,407, respectively] $156,761,020 $193,530,273
============ ============
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Phoenix-Duff & Phelps Core Bond Fund Series
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------------
Year Ended October 31
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1999 1998 1997 1996 1995
Net asset value, beginning of period $9.83 $9.66 $9.47 $9.60 $8.88
Income from investment operations
Net investment income (loss) 0.59 0.59 0.55 0.52 0.55
Net realized and unrealized gain (loss) (0.78) 0.18 0.17 (0.15) 0.72
----- ----- ----- ----- -----
Total from investment operations (0.19) 0.77 0.72 0.37 1.27
----- ----- ----- ----- -----
Less distributions
Dividends from net investment income (0.56) (0.57) (0.53) (0.50) (0.55)
Dividends from net realized gains -- -- -- -- --
In excess of net investment income (0.04) (0.03) -- -- --
----- ----- ----- ----- -----
Total distributions (0.60) (0.60) (0.53) (0.50) (0.55)
----- ----- ----- ----- -----
Change in net asset value (0.79) 0.17 0.19 (0.13) 0.72
----- ----- ----- ----- -----
Net asset value, end of period $9.04 $9.83 $9.66 $9.47 $9.60
===== ===== ===== ===== =====
Total return(1) (1.97)% 8.16% 7.85% 4.05% 14.81%
Ratios/supplemental data:
Net assets, end of period (thousands) $144,923 $180,628 $182,250 $208,552 $235,879
Ratio to average net assets of:
Operating expenses 1.04% 1.00% 0.98% 1.03% 0.99%
Net investment income 5.62% 5.46% 5.63% 5.55% 6.01%
Portfolio turnover 112% 290% 377% 379% 178%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CLASS B CLASS C
---------------------------------------------------------- -------------
From
Year Ended October 31 Inception
---------------------------------------------------------- 10/12/99 to
1999 1998 1997 1996 1995 10/31/99
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.77 $9.60 $9.45 $9.58 $8.86 $8.96
Income from investment operations
Net investment income (loss) 0.51 0.52 0.47 0.44 0.48 0.03
Net realized and unrealized gain (loss) (0.78) 0.18 0.17 (0.14) 0.72 0.03
----- ----- ----- ----- ----- -----
Total from investment operations (0.27) 0.70 0.64 0.30 1.20 0.06
----- ----- ----- ----- ----- -----
Less distributions
Dividends from net investment income (0.49) (0.51) (0.49) (0.43) (0.48) (0.03)
Dividends from net realized gains -- -- -- -- -- --
In excess of net investment income (0.04) (0.02) -- -- -- --
----- ----- ----- ----- ----- -----
Total distributions (0.53) (0.53) (0.49) (0.43) (0.48) (0.03)
----- ----- ----- ----- ----- -----
Change in net asset value (0.80) 0.17 0.15 (0.13) 0.72 0.03
----- ----- ----- ----- ----- -----
Net asset value, end of period $8.97 $9.77 $9.60 $9.45 $9.58 $8.99
===== ===== ===== ===== ===== =====
Total return(1) (2.77)% 7.48% 6.94% 3.39% 13.82% 0.53%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $11,737 $12,902 $5,321 $4,875 $3,655 $101
Ratio to average net assets of:
Operating expenses 1.79% 1.75% 1.71% 1.78% 1.73% 1.37%(2)
Net investment income 4.89% 4.74% 4.91% 4.79% 5.23% 4.97%(2)
Portfolio turnover 112% 290% 377% 379% 178% 112%
</TABLE>
(1) Maximum sales load is not reflected in the total return calculation.
(2) Annualized.
(3) Not annualized.
8 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Aggressive Growth Fund Series
A Discussion with the Fund's Portfolio Managers, Roger Engemann, CFA, Jim Mair,
CFA and John Tilson, CFA
Q: What is the Fund's investment objective?
A: The Fund is appropriate for aggressive long-term investors willing to assume
above-average capital growth potential. The Fund may invest in smaller
capitalization companies, and investors should note that small-company investing
involves added risks, including greater price volatility, less liquidity, and
increased competitive threat.
Q: Can you describe your investing style?
A: We are driven by fundamental research. We analyze companies and industries
from the bottom up, meeting with management, attending trade shows, and meeting
with competitors, suppliers and customers in order to develop a complete picture
of a company and the environment in which it competes. We combine the bottom-up
research with a top-down approach when determining sector allocation. Based upon
our determination of the growth opportunities within particular industries and
our view of the economic and market outlooks, we determine a desired sector
allocation. We also tend to run higher cash levels than most funds to take
advantage of market opportunities.
Q: Can you describe what you look for in companies?
A: We look for companies that have the potential to grow revenues, and
eventually earnings at a rate that exceeds 20%. We look for companies that are
positioned as leaders in fast growing markets. Additionally, we believe that
stocks exhibit outperformance based upon positive incremental change, such as
accelerating earnings or revenue growth.
Q: What size companies do you invest in?
A: Typically, we invest in mid-cap companies. That is, companies with a market
capitalization between $500 million and $10 billion. The median market cap of
the Fund is approximately $6 billion. Although some of our positions presently
have market caps that exceed $10 billion, in general, they were purchased when
their market caps were below that level, and have appreciated over the time to
exceed $10 billion.
<PAGE>
Q: How has the Fund performed over the last 12 months?
A: For the fiscal year ended October 31, 1999, Class A shares returned 78.94%
and Class B shares returned 77.54% compared with 21.07% for the S&P MidCap 400
Index, 29.28% for the Russell 2000 Growth Index1 and 25.79% for the S&P 500
Index.1 All performance figures assume reinvestment of distributions and exclude
the effect of sales charges. Please consider all performance periods and the
effect of the past 12 months' strong market when evaluating funds.
Q: What's been the primary reason behind your excellent results?
A: Technology has been the primary factor in our outperformance. During the
market correction of 1998, we added significantly to both our technology and
financial holdings. We pared back on the financials during the spring of 1999,
based on our bearish views of interest rates, and used the additional cash to
increase our position in technology. During the summer months, we maintained
higher-than-normal cash balances, which helped our performance significantly
during a very volatile period for the market. During late August, we began to
redeploy the cash, primarily into technology stocks. This shift proved
beneficial as the mid-cap technology market took off, and our performance
responded as well.
The top 10 contributors to our performance during the past 12 months were:
America Online, JDS Uniphase, Xilinx Inc., Tellabs Inc., Clear Channel
(radio/broadcast), Univision Communications (Hispanic broadcast), Cendant Corp.
(consumer services), MCI WorldCom, Micrel Inc., and Ascend Communications.
Unless otherwise noted, all of these are either technology or communication
service companies.
The 10 worst contributors to our performance during the past 12 months were:
Micron Technology, Countrywide Credit, New Era of Networks, Maxtor Commerce One,
McKesson HBOC, Network Plus, Cambridge Technology, Etec Systems, and Compuware.
Q: What is your outlook for technology going forward?
A: We remain bullish about the long-term outlook for technology, but as always
are cautious about the short term.
November 30, 1999
(1) The S&P MidCap 400 Index is an unmanaged, commonly used measure of
mid-capitalization stock total return performance, the Russell 2000 Growth
Index is an unmanaged, commonly used measure of total return performance of
small-capitalization growth-oriented stocks and the S&P 500 Index is an
unmanaged, commonly used measure of broad stock market total return
performance. The indices are not available for direct investment.
9
<PAGE>
Phoenix-Engemann Aggressive Growth Series
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Average Annual Total Returns(1) PERIODS ENDING 10/31/99
- --------------------------------------------------------------------------------------------------------------------------
INCEPTION INCEPTION
1 YEAR 5 YEAR 10 YEAR TO 10/31/99 DATE
------ ------ ------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Class A Shares at NAV(2) 78.94% 27.81% 17.65% -- --
Class A Shares at POP(3) 70.44 26.58 17.08 -- --
Class B Shares at NAV(2) 77.54 26.86 -- 25.65 7/21/94
Class B Shares with CDSC(4) 73.54 26.86 -- 25.65 7/21/94
Russell 2000 Growth Index(6) 29.28 12.49 10.79 13.60 7/21/94
S&P 500 Index(7) 25.79 26.10 17.85 25.79 7/21/94
</TABLE>
(1) Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
(2) "NAV" (Net Asset Value) total returns do not include the effect of any sales
charge.
(3) "POP" (Public Offering Price) total returns include the effect of the
maximum front-end 4.75% sales charge.
(4) CDSC (contingent deferred sales charge) is applied to redemptions of certain
classes of shares that do not have a sales charge applied at the time of
purchase. CDSC charges for B shares decline from 5% to 0% over a five year
period.
(5) This chart illustrates POP returns on Class A shares for ten years. Returns
on Class B shares will vary due to differing sales charges.
(6) The Russell 2000 Growth Index is an unmanaged, commonly used measure of
total return performance of small-capitalization growth-oriented stocks. The
index's performance does not reflect sales charges.
(7) The S&P 500 Index is an unmanaged, commonly used measure of stock market
total return performance. The index's performance does not reflect sales
charges.
All returns represent past performance which may not be indicative of future
performance. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
<PAGE>
- --------------------------------------------------------------------------------
Growth of $10,000 PERIODS ENDING 10/31/99
- --------------------------------------------------------------------------------
[Edgar representation of data points used in printed graphics]
<TABLE>
<CAPTION>
Phoenix-Engemann Aggressive Growth Fund Class A(5) Russell 2000 Growth Index(6) S&P 500 Index(7)
<S> <C> <C> <C>
10/31/1989 $ 9,525 $10,000 $10,000
10/31/1990 $ 8,261 $ 7,366 $ 9,248
10/31/1991 $11,564 $12,267 $12,348
10/30/1992 $12,359 $12,223 $13,576
10/28/1993 $14,139 $15,605 $15,598
10/31/1994 $14,192 $15,462 $16,212
10/31/1995 $19,179 $18,645 $20,494
10/31/1996 $22,521 $21,130 $25,453
10/31/1997 $26,950 $25,603 $33,682
10/30/1998 $27,053 $21,543 $41,097
10/29/1999 $48,408 $27,851 $51,694
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
10/31/89 in Class A shares and reflects the maximum sales charge of 4.75% on the
initial investment. Performance assumes dividends and capital gains are
reinvested. The performance of other share classes will be greater or less than
that shown based on differences in inception dates, fees and sales charges.
- --------------------------------------------------------------------------------
Sector Weightings 10/31/99
- --------------------------------------------------------------------------------
As a percentage of equity holdings
[PIE CHART GRAPHIC OMITTED]
Technology 58%
Consumer Staples 9%
Financials 8%
Consumer Cyclicals 8%
Capital Goods 8%
Communication Services 6%
Health-Care 2%
Other 1%
10
<PAGE>
Phoenix-Engemann Aggressive Growth Fund Series
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Ten Largest Equity Holdings at October 31, 1999 (as a percentage of total net assets)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. America Online, Inc. 4.2% 6. Jabil Circuit, Inc. 2.4%
Major provider of online services to consumers Designs and manufactures electronic circuit boards
2. JDS Uniphase Corp. 4.1% 7. Univision Communications, Inc., Class A 2.2%
Manufactures fiber optic telecommunications systems Spanish-language television broadcaster in the U.S.
3. Clear Channel Communications, Inc. 3.8% 8. Maxim Integrated Products, Inc. 2.1%
Diversified media company Manufactures analog circuits
4. Xilinx, Inc. 3.2% 9. BMC Software, Inc. 2.1%
Designs and sells programmable logic devices Major provider of application software
5. Tellabs, Inc. 2.6% 10. Applied Micro Circuits Corp. 1.9%
Makes and services voice, data and video network Manufactures high-bandwidth silicon solutions
communications access systems infrastructures
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
INVESTMENTS AT OCTOBER 31, 1999
SHARES VALUE
------- -----------
COMMON STOCKS--91.1%
Banks (Money Center)--0.8%
Morgan (J.P.) & Co., Inc. .......................... 25,000 $ 3,271,875
Banks (Regional)--1.8%
City National Corp. ................................ 20,000 775,000
First Security Corp. ............................... 150,000 3,843,750
Marshall & Ilsley Corp. ............................ 40,000 2,685,000
-----------
7,303,750
-----------
Biotechnology--0.7%
Biogen, Inc.(b) .................................... 40,000 2,965,000
Broadcasting (Television, Radio & Cable)--7.8%
Clear Channel Communications, Inc.(b) .............. 190,000 15,271,250
Hispanic Broadcasting Corp.(b) ..................... 49,500 4,009,500
Insight Communications Co., Inc.(b) ................ 57,500 1,358,437
Spanish Broadcasting System, Inc.
Class A(b) ......................................... 75,000 1,996,875
Univision Communications, Inc.
Class A(b) ......................................... 105,000 8,931,562
-----------
31,567,624
-----------
<PAGE>
SHARES VALUE
------- -----------
Communications Equipment--4.9%
CIENA Corp.(b) ..................................... 105,000 $ 3,701,250
Netro Corp.(b) ..................................... 100,000 2,281,250
Sycamore Networks, Inc.(b) ......................... 1,400 301,000
Tellabs, Inc.(b) ................................... 170,000 10,752,500
Terayon Communication Systems, Inc.(b) ............. 65,000 2,843,750
-----------
19,879,750
-----------
Computers (Hardware)--0.9%
Juniper Networks, Inc.(b) .......................... 12,500 3,445,312
Computers (Networking)--5.3%
Agile Software Corp.(b) ............................ 40,000 3,920,000
Akamai Technologies, Inc.(b) ....................... 5,000 725,937
Bluestone Software, Inc.(b) ........................ 40,000 1,475,000
Crossroads Systems, Inc.(b) ........................ 10,000 711,250
Foundry Networks, Inc.(b) .......................... 10,000 1,895,000
ITXC Corp.(b) ...................................... 60,000 2,715,000
Intertrust Technologies Corp.(b) ................... 20,000 1,090,000
Interwoven, Inc.(b) ................................ 50,000 3,918,750
Keynote Systems, Inc.(b) ........................... 75,000 3,403,125
See Notes to Financial Statements
11
<PAGE>
Phoenix-Engemann Aggressive Growth Fund Series
SHARES VALUE
------- -----------
Computers (Networking)--continued
NetZero, Inc.(b) ................................... 85,900 $ 1,766,319
-----------
21,620,381
-----------
Computers (Peripherals)--1.8%
EMC Corp.(b) ....................................... 100,000 7,300,000
Computers (Software & Services)--17.8%
America Online, Inc.(b) ............................ 130,000 16,859,375
Ariba, Inc.(b) ..................................... 30,000 4,650,000
BEA Systems, Inc.(b) ............................... 165,000 7,528,125
BMC Software, Inc.(b) .............................. 135,000 8,665,312
Citrix Systems, Inc.(b) ............................ 80,000 5,130,000
E.piphany, Inc.(b) ................................. 30,000 2,580,000
Exodus Communications, Inc.(b) ..................... 40,000 3,440,000
Inktomi Corp.(b) ................................... 15,000 1,521,562
Legato Systems, Inc.(b) ............................ 100,000 5,375,000
New Era of Networks, Inc.(b) ....................... 100,000 3,243,750
Packeteer, Inc.(b) ................................. 17,500 595,000
Peregrine Systems, Inc.(b) ......................... 75,000 3,290,625
Sapient Corp.(b) ................................... 30,000 3,836,250
VERITAS Software Corp.(b) .......................... 50,000 5,393,750
-----------
72,108,749
-----------
Consumer Finance--1.8%
Countrywide Credit Industries, Inc. ................ 195,000 6,617,812
NextCard, Inc(b) ................................... 25,000 779,687
-----------
7,397,499
-----------
Electrical Equipment--1.9%
Flextronics International Ltd.(b) .................. 45,000 3,195,000
Sanmina Corp.(b) ................................... 50,000 4,503,125
-----------
7,698,125
-----------
Electronics (Semiconductors)--18.3%
Analog Devices, Inc.(b) ............................ 115,000 6,109,375
Applied Micro Circuits Corp.(b) .................... 100,000 7,781,250
Conexant Systems, Inc.(b) .......................... 75,000 7,003,125
JDS Uniphase Corp.(b) .............................. 100,000 16,687,500
LSI Logic Corp.(b) ................................. 75,000 3,989,063
<PAGE>
SHARES VALUE
------- -----------
Electronics (Semiconductors)--continued
Maxim Integrated Products, Inc.(b) ................. 110,000 $ 8,683,125
Micrel, Inc.(b) .................................... 120,000 6,525,000
SDL, Inc.(b) ....................................... 38,000 4,685,875
Xilinx, Inc.(b) .................................... 165,000 12,973,125
-----------
74,437,438
-----------
Equipment (Semiconductor)--2.2%
Applied Materials, Inc.(b) ......................... 50,000 4,490,625
KLA-Tencor Corp.(b) ................................ 55,000 4,355,313
-----------
8,845,938
-----------
Financial (Diversified)--0.4%
Pinnacle Holdings, Inc.(b) ......................... 75,000 1,800,000
Gaming, Lottery & Pari-mutuel Companies--0.5%
Mandalay Resort Group(b) ........................... 100,000 1,862,500
Health Care (Generic and Other)--0.4%
Mylan Laboratories, Inc. ........................... 100,000 1,793,750
Health Care (Medical Products & Supplies)--0.6%
Guidant Corp. ...................................... 50,000 2,468,750
Investment Banking/Brokerage--2.1%
E*TRADE Group, Inc.(b) ............................. 245,000 5,834,063
Lehman Brothers Holdings, Inc. ..................... 35,000 2,579,063
-----------
8,413,126
-----------
Iron & Steel--0.2%
Steel Dynamics Inc ................................. 47,000 643,313
Leisure Time (Products)--0.4%
Harley-Davidson, Inc. .............................. 30,000 1,779,375
Manufacturing (Diversified)--3.1%
AlliedSignal, Inc. ................................. 70,000 3,985,625
Tyco International Ltd. ............................ 120,000 4,792,500
United Technologies Corp. .......................... 60,000 3,630,000
-----------
12,408,125
-----------
See Notes to Financial Statements
12
<PAGE>
Phoenix-Engemann Aggressive Growth Fund Series
SHARES VALUE
------- -----------
Manufacturing (Specialized)--2.5%
Jabil Circuit, Inc.(b) ............................. 190,000 $ 9,927,500
Power Producers (Independent)--1.0%
Calpine Corp.(b) ................................... 60,000 3,457,500
Plug Power, Inc.(b) ................................ 37,500 600,000
-----------
4,057,500
-----------
Retail (Building Supplies)--0.4%
Lowe's Companies, Inc. ............................. 32,000 1,760,000
Retail (Computers & Electronics)--0.8%
Circuit City Stores-Circuit City Group ............. 80,000 3,415,000
Retail (Home Shopping)--0.6%
Drugstore.Com, Inc.(b) ............................. 70,000 2,546,250
Retail (Specialty)--1.1%
Bed, Bath & Beyond, Inc.(b) ........................ 130,000 4,330,625
Savings & Loan Companies--0.7%
Golden State Bancorp, Inc.(b) ...................... 130,000 2,713,750
Services (Advertising/Marketing)--0.9%
Interpublic Group of Companies, Inc. (The) ......... 90,000 3,656,250
Services (Commercial & Consumer)--2.7%
Cendant Corp.(b) ................................... 350,000 5,775,000
MIPS Technologies, Inc. Class A(b) ................. 185,000 5,341,875
-----------
11,116,875
-----------
Services (Computer Systems)--1.0%
Whittman-Hart, Inc.(b) ............................. 100,000 3,843,750
Services (Data Processing)--0.6%
Concord EFS, Inc.(b) ............................... 37,500 1,014,844
Predictive Systems, Inc.(b) ........................ 32,500 1,413,750
-----------
2,428,594
-----------
Telecommunications (Cellular/Wireless)--1.7%
Sprint Corp. (PCS Group)(b) ........................ 85,000 7,049,688
Telecommunications (Long Distance)--3.1%
MCI WorldCom, Inc.(b) .............................. 65,000 5,577,813
McLeodUSA, Inc. Class A(b) ......................... 80,000 3,570,000
WinStar Communications, Inc.(b) .................... 85,000 3,299,063
-----------
12,446,876
-----------
Telephone--0.3%
Allied Riser Communications Corp.(b) ............... 60,000 1,080,000
- --------------------------------------------------------------------------------
Total Common Stocks
(Identified cost $220,763,098) 369,383,038
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS--0.2%
Services (Data Processing)--0.2%
Trintech Group PLC Sponsored ADR
(Germany)(b) ....................................... 50,000 881,250
<PAGE>
SHARES VALUE
------- -----------
- --------------------------------------------------------------------------------
Total Foreign Common Stocks
(Identified cost $642,810) $ 881,250
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total Long-Term Investments--91.3%
(Identified cost $221,405,908) 370,264,288
- --------------------------------------------------------------------------------
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ----- -----
SHORT-TERM OBLIGATIONS--10.6%
Commercial Paper--9.4%
Emerson Electric Co. 5.18%, 11/1/99 ..... A-1+ $5,705 $ 5,705,000
Greenwich Funding Corp. 5.35%,
11/2/99 ................................. A-1+ 4,350 4,349,354
Marsh & McLennan Cos., Inc.
5.25%, 11/2/99 .......................... A-1+ 3,535 3,534,484
Commercial Paper--continued
Wisconsin Electric Power Co. 5.30%,
11/2/99 ................................. A-1+ $1,100 $ 1,099,838
Lexington Parker Capital Co. LLC 5.37%
11/3/99 ................................. A-1 3,000 2,999,105
Receivables Capital Corp. 5.38%,
11/4/99 ................................. A-1+ 3,345 3,343,500
Ford Motor Credit Co. 5.24%, 11/5/99 .... A-1 4,000 3,997,671
Vermont American Corp. 5.25%,
11/8/99 ................................. A-1+ 6,635 6,628,227
SBC Communications. Inc. 5.30%,
11/19/99 ................................ A-1+ 3,000 2,992,050
Donnelley (R.R.) & Sons Co. 5.32%,
11/23/99 ................................ A-1 3,455 3,443,767
-----------
38,092,996
-----------
<PAGE>
PAR
VALUE
(000) VALUE
------- ------------
Federal Agency Securities--1.2%
Fannie Mae 5.88%, 11/3/99 .......................... $ 5,000 $ 4,999,890
- --------------------------------------------------------------------------------
Total Short-Term Obligations
(Identified Cost $43,092,886) 43,092,886
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--101.9%
(Identified Cost $264,498,794) 413,357,174(a)
Cash and Receivables, less liabilities--(1.9%) (7,596,463)
------------
NET ASSETS--100.0% $405,760,711
============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $151,649,498 and gross
depreciation of $2,791,118 for federal income tax purposes. At October 31,
1999, the aggregate cost of securities for federal income tax purposes was
$264,498,794.
(b) Non-income producing.
See Notes to Financial Statements
13
<PAGE>
Phoenix-Engemann Aggressive Growth Fund Series
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
Assets
Investment securities at value
(Identified cost $264,498,794) $ 413,357,174
Short-term investments held as collateral for
loaned securities 38,473,422
Cash 26,011
Receivables
Investment securities sold 855,847
Fund shares sold 394,606
Interest and dividends 176,201
Prepaid expenses 4,911
--------------
Total assets 453,288,172
--------------
Liabilities
Payables
Collateral on securities loaned 38,473,422
Investment securities purchased 8,446,632
Fund shares repurchased 132,562
Investment advisory fee 222,713
Distribution fee 95,430
Transfer agent fee 78,626
Financial agent fee 24,734
Trustees' fee 898
Accrued expenses 52,444
--------------
Total liabilities 47,527,461
--------------
Net Assets $ 405,760,711
==============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $ 207,027,543
Accumulated net realized gain 49,874,788
Net unrealized appreciation 148,858,380
--------------
Net Assets $ 405,760,711
==============
Class A
Shares of beneficial interest outstanding,
$1 par value, unlimited authorization
(Net Assets $ 378,426,778) 15,417,962
Net asset value per share $24.54
Offering price per share $24.54/(1-4.75%) $25.76
Class B
Shares of beneficial interest outstanding,
$1 par value, unlimited authorization
(Net Assets $ 27,333,933) 1,168,279
Net asset value and offering price per share $23.40
<PAGE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
Investment Income
Interest $ 1,535,617
Dividends 812,291
Security lending 219,309
--------------
Total investment income 2,567,217
--------------
Expenses
Investment advisory fee 2,312,441
Distribution fee, Class A 774,449
Distribution fee, Class B 205,673
Financial agent fee 254,631
Transfer agent 369,475
Printing 65,479
Custodian 30,608
Professional 23,442
Registration 21,235
Trustees 12,140
Miscellaneous 6,298
--------------
Total expenses 4,075,871
Custodian fees paid indirectly (15,337)
--------------
Net expenses 4,060,534
--------------
Net investment loss (1,493,317)
--------------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 57,892,284
Net change in unrealized appreciation (depreciation)
on investments 124,594,176
--------------
Net gain on investments 182,486,460
--------------
Net increase in net assets resulting from
operations $ 180,993,143
==============
14 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Aggressive Growth Fund Series
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/99 10/31/98
-------------- -------------
<S> <C> <C>
From Operations
Net investment income (loss) $ (1,493,317) $ (572,877)
Net realized gain (loss) 57,892,284 (6,139,764)
Net change in unrealized appreciation/(depreciation) 124,594,176 9,270,385
-------------- -------------
Increase (decrease) in net assets resulting from operations 180,993,143 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 (7,232,280 and 2,468,365 shares, respectively) 150,541,641 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 (8,007,207 and 3,976,755 shares, respectively) (164,237,986) (59,756,494)
-------------- -------------
Total (13,696,345) 22,823,344
-------------- -------------
Class B
Proceeds from sales of shares (640,281 and 561,461 shares, respectively) 12,823,475 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 (546,304 and 493,541 shares, respectively) (10,666,072) (7,177,346)
-------------- -------------
Total 2,157,403 3,447,085
-------------- -------------
Increase (decrease) in net assets from share transactions (11,538,942) 26,270,429
-------------- -------------
Net increase (decrease) in net assets 169,454,201 (23,307,015)
-------------- -------------
Net Assets
Beginning of period 236,306,510 259,613,525
-------------- -------------
End of period (including undistributed net investment income of $0 and $0 respectively) $ 405,760,711 $ 236,306,510
============== =============
</TABLE>
See Notes to Financial Statements 15
<PAGE>
Phoenix-Engemann Aggressive Growth Series
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------
Year Ended October 31
----------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.72 $ 17.20 $ 16.84 $ 16.51 $ 13.33
Income from investment operations(3)
Net investment income (loss) (0.08)(2) (0.03) (0.08)(2) (0.13)(2) 0.06(2)
Net realized and unrealized gain (loss) 10.90 0.04 2.95 2.64 4.21
-------- -------- -------- -------- --------
Total from investment operations 10.82 0.01 2.87 2.51 4.27
-------- -------- -------- -------- --------
Less distributions
Dividends from net investment income -- -- -- (0.02) (0.19)
Dividends from net realized gains -- (3.46) (2.51) (2.16) (0.90)
In excess of net investment income -- (0.03) -- -- --
-------- -------- -------- -------- --------
Total distributions -- (3.49) (2.51) (2.18) (1.09)
-------- -------- -------- -------- --------
Change in net asset value 10.82 (3.48) 0.36 0.33 3.18
-------- -------- -------- -------- --------
Net asset value, end of period $ 24.54 $ 13.72 $ 17.20 $ 16.84 $ 16.51
======== ======== ======== ======== ========
Total return(1) 78.94% 0.38% 19.67% 17.43% 35.14%
Ratios/supplemental data:
Net assets, end of period (thousands) $378,427 $222,149 $246,002 $233,488 $180,288
Ratio to average net assets of:
Operating expenses 1.19%(4) 1.21% 1.20% 1.20% 1.29%
Net investment income (0.41)% (0.18)% (0.53)% (0.81)% 0.43%
Portfolio turnover 167% 176% 518% 401% 331%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------
Year Ended October 31
----------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.18 $ 16.76 $ 16.57 $ 16.38 $ 13.31
Income from investment operations(3)
Net investment income (loss) (0.22)(2) (0.12) (0.20)(2) (0.25)(2) (0.12)(2)
Net realized and unrealized gain (loss) 10.44 0.03 2.90 2.60 4.26
-------- -------- -------- -------- --------
Total from investment operations 10.22 (0.09) 2.70 2.35 4.14
-------- -------- -------- -------- --------
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 investment income -- (0.03) -- -- --
-------- -------- -------- -------- --------
Total distributions -- (3.49) (2.51) (2.16) (1.07)
-------- -------- -------- -------- --------
Change in net asset value 10.22 (3.58) 0.19 0.19 3.07
-------- -------- -------- -------- --------
Net asset value, end of period $ 23.40 $ 13.18 $ 16.76 $ 16.57 $ 16.38
======== ======== ======== ======== ========
Total return(1) 77.54% (0.28)% 18.70% 16.52% 34.15%
Ratios/supplemental data:
Net assets, end of period (thousands) $ 27,334 $ 14,157 $ 13,611 $ 10,466 $ 2,393
Ratio to average net assets of:
Operating expenses 1.94%(4) 1.96% 1.96% 1.95% 2.04%
Net investment income (1.16)% (0.93)% (1.28)% (1.57)% (0.83)%
Portfolio turnover 167% 176% 518% 401% 331%
</TABLE>
(1) Maximum sales load is not reflected in the total return calculation.
(2) Computed using average shares outstanding.
(3) 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.
(4) For the year ended October 31, 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 be 1.18% and 1.93%
for Class A and Class B, respectively.
16 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Capital Growth Fund Series
A Discussion with the Fund's Portfolio Managers, Roger Engemann, CFA, James
Mair, CFA, and John Tilson, CFA
Q: Why was the Fund's name changed?
A: In August, shareholders of the former Phoenix-Goodwin Growth Fund approved
the Phoenix Investment Partners Board of Trustees' recommendation that Roger
Engemann & Associates, Inc., a subsidiary of Phoenix Investment Partners, Ltd.,
assume investment responsibility for the Fund. The Fund's name was changed to
reflect the new subadviser. In addition, the word Capital was added to the name
to differentiate it from the Phoenix-Engemann Focus Growth Fund. The
Phoenix-Engemann Capital Growth Fund holds a large number of stocks, usually 75
to 100, compared with the Phoenix-Engemann Focus Growth Fund, which typically
holds 35 to 40.
Q: What is the Fund's investment objective?
A: The Fund's objective remains long-term capital appreciation. Roger Engemann &
Associates' investment approach applies a classic growth discipline that focuses
on quality companies with consistent earnings growth, financial strength, and a
favorable long-term outlook.
Q: How did the Fund perform over the 12 months ended October 31, 1999?
A: Class A shares returned 29.76% and Class B shares returned 28.80% compared
with a return of 25.79% for the S&P 500 Index.(1) All performance figures assume
reinvestment of dividends and exclude the effect of sales charges. Please
consider all performance periods and the effect of the past 12 months' strong
market when evaluating funds.
Q: What were the primary reasons the Fund outperformed the S&P 500?
A: A large part of the outperformance was due to our investments in the
technology sector. When we took over management in April 1999, the Fund already
invested a portion of the assets in technology with good results. From April to
October, we dramatically increased the portion of technology in the Fund from
approximately 20% of total assets to 40%. Today, six of the largest 10 holdings
in the Fund are in the technology sector--Microsoft, Intel, Texas Instruments,
Cisco, America Online and Lucent.
Q: What other changes did you make to the portfolio when you assumed management
of the Fund in April?
A: Over the last six months, we reduced our weighting in the health-care,
consumer staples, and energy industries. With the exception of energy, our move
away from these sectors has generally been a good one because they have been
poor performers in that time frame. Furthermore, we moved this money into
technology, which has been a good performing sector as we stated before.
Q: How have you positioned the Phoenix-Engemann Capital Growth Fund for the
future?
A: We have positioned the Fund to benefit from the technological revolution we
see before us. Just as the growth of the railroads in the late nineteenth
century caused a cataclysmic change in the way companies and consumers operated,
the growth of the Internet, computers and semiconductors is causing a similar
cataclysmic change. The result of this change shows up in the high growth rates
in the technology companies we own. We will continue to be heavily invested in
technology for the foreseeable future to take advantage of this growth.
November 30, 1999
(1) The S&P 500 Index is an unmanaged, commonly used measure of broad stock
market total return performance. The index is not available for direct
investment.
17
<PAGE>
Phoenix-Engemann Capital Growth Fund Series
<TABLE>
<CAPTION>
Average Annual Total Returns(1) PERIODS ENDING 10/31/99
INCEPTION INCEPTION
1 YEAR 5 YEAR 10 YEAR TO 10/31/99 DATE
------ ------ ------- ----------- ---------
<S> C> <C> <C> <C> <C> <C>
Class A Shares at NAV(2) 29.76% 21.25% 15.26% -- --
Class A Shares at POP(3) 23.59 20.08 14.70 -- --
Class B Shares at NAV(2) 28.80 20.36 -- 19.88% 7/15/94
Class B Shares with CDSC(4) 24.80 20.36 -- 19.88 7/15/94
S&P 500 Index(6) 25.79 26.10 17.85 25.61 7/15/94
</TABLE>
(1) Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
(2) "NAV" (Net Asset Value) total returns do not include the effect of any
sales charge.
(3) "POP" (Public Offering Price) total returns include the effect of the
maximum front-end 4.75% sales charge.
(4) CDSC (contingent deferred sales charge) is applied to redemptions of
certain classes of shares that do not have a sales charge applied at the
time of purchase. CDSC charges for B shares decline from 5% to 0% over a
five year period.
(5) This chart illustrates POP returns on Class A shares for ten years. Returns
on Class B shares will vary due to differing sales charges.
(6) The S&P 500 Index is an unmanaged, commonly used measure of stock market
total return performance. The index's performance does not reflect sales
charges.
All returns represent past performance which may not be indicative of future
performance. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their original cost.
<PAGE>
Growth of $10,000 PERIODS ENDING 10/31/99
[Edgar representation of data points used in printed graphics]
<TABLE>
<CAPTION>
@ Phoenix-Engemann Capital Growth Fund Class A # S&P 500 Index
<S> <C> <C>
10/31/1989 $ 9,525 $10,000
10/31/1990 $ 9,816 $ 9,248
10/31/1991 $12,856 $12,346
10/30/1992 $13,749 $13,576
10/28/1993 $14,739 $15,598
10/31/1994 $15,043 $18,212
10/31/1995 $18,639 $20,494
10/31/1996 $21,685 $25,453
10/31/1997 $27,064 $33,682
10/30/1998 $30,382 $41,097
10/29/1999 $39,423 $51,694
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
10/31/89 in Class A shares and reflects the maximum sales charge of 4.75% on the
initial investment. Performance assumes dividends and capital gains are
reinvested. The performance of other share classes will be greater or less than
that shown based on differences in inception dates, fees and sales charges.
Sector Weightings 10/31/99
As a percentage of equity holdings
[PIE CHART GRAPHIC OMITTED]
o Technology 40%
o Consumer Cyclicals 14
o Financials 13
o Health-Care 9
o Capital Goods 8
o Consumer Staples 8
o Communication Services 8
18
<PAGE>
Phoenix-Engemann Capital Growth Fund Series
Ten Largest Holdings at October 31, 1999 (as a percentage of total net assets)
<TABLE>
<S> <C> <C> <C>
1. MCI WorldCom, Inc. 5.5% 6. Wal-Mart Stores, Inc. 3.2%
Comprehensive telecommunications service provider One of the largest U.S. discount retailers
2. Microsoft Corp. 4.9% 7. Cisco Systems, Inc. 3.2%
World's leading computer software company Develops multiprotocol Internet-working systems
3. Intel Corp. 4.1% 8. Home Depot, Inc. (The) 3.2%
Designs, develops and markets microcomputer components Retailer in the home improvement industry
4. General Electric Co. 3.5% 9. America Online, Inc. 3.2%
Diversified manufacturing and financial services provider Major provider of online services to consumers
5. Texas Instruments, Inc. 3.4% 10. Lucent Technologies, Inc. 3.1%
Global semiconductor company Telecommunications company with an emphasis on voice
and data
</TABLE>
INVESTMENTS AT OCTOBER 31, 1999
SHARES VALUE
--------- ------------
COMMON STOCKS--98.5%
Banks (Major Regional)--2.9%
Mellon Financial Corp. .............................. 613,000 $ 22,642,687
Wells Fargo Co. ..................................... 1,286,900 61,610,337
------------
84,253,024
------------
Broadcasting (Television, Radio & Cable)--3.8%
AT&T Corp.- Liberty Media Group
Class A(b) .......................................... 1,478,400 58,674,000
CBS Corp.(b) ........................................ 608,500 29,702,406
Clear Channel Communications, Inc.(b) ............... 277,800 22,328,175
------------
110,704,581
------------
Communications Equipment--4.6%
Lucent Technologies, Inc. ........................... 1,420,000 91,235,000
Tellabs, Inc.(b) .................................... 668,600 42,288,950
------------
133,523,950
------------
Computers (Hardware)--4.6%
Dell Computer Corp.(b) .............................. 798,300 32,031,787
International Business Machines Corp. ............... 523,600 51,509,150
Sun Microsystems, Inc.(b) ........................... 466,200 49,329,787
------------
132,870,724
------------
<PAGE>
SHARES VALUE
--------- ------------
Computers (Networking)--3.2%
Cisco Systems, Inc.(b) .............................. 1,268,200 $ 93,846,800
Computers (Peripherals)--2.6%
EMC Corp.(b) ........................................ 1,022,800 74,664,400
Computers (Software & Services)--13.5%
America Online, Inc.(b) ............................. 719,200 93,271,250
BEA Systems, Inc.(b) ................................ 160,000 7,300,000
BMC Software, Inc.(b) ............................... 281,300 18,055,944
Citrix Systems, Inc.(b) ............................. 165,000 10,580,625
Clarify, Inc.(b) .................................... 130,000 10,042,500
Computer Associates International, Inc. ............. 250,000 14,125,000
Compuware Corp.(b) .................................. 366,300 10,187,719
Edwards (J.D.) & Co.(b) ............................. 250,000 5,984,375
Legato Systems, Inc.(b) ............................. 130,000 6,987,500
Microsoft Corp.(b) .................................. 1,544,800 142,990,550
Oracle Corp.(b) ..................................... 400,000 19,025,000
Peregrine Systems, Inc.(b) .......................... 140,000 6,142,500
Siebel Systems, Inc.(b) ............................. 130,000 14,275,625
VERITAS Software Corp.(b) ........................... 80,000 8,630,000
Yahoo!, Inc.(b) ..................................... 85,600 15,327,750
i2 Technologies, Inc.(b) ............................ 144,500 11,406,469
------------
394,332,807
------------
See Notes to Financial Statements 19
<PAGE>
Phoenix-Engemann Capital Growth Fund Series
SHARES VALUE
--------- ------------
Consumer Finance--1.6%
Capital One Financial Corp. ......................... 322,200 $ 17,076,600
Countrywide Credit Industries, Inc. ................. 450,000 15,271,875
MBNA Corp. .......................................... 500,000 13,812,500
------------
46,160,975
------------
Distributors (Food & Health)--0.5%
Cardinal Health, Inc. ............................... 361,650 15,596,156
Electrical Equipment--4.9%
Flextronics International Ltd.(b) ................... 190,000 13,490,000
General Electric Co. ................................ 758,100 102,769,931
Sanmina Corp.(b) .................................... 130,000 11,708,125
Solectron Corp.(b) .................................. 200,000 15,050,000
------------
143,018,056
------------
Electronics (Semiconductors)--8.5%
Intel Corp. ......................................... 1,533,400 118,742,663
JDS Uniphase Corp.(b) ............................... 46,000 7,676,250
Linear Technology Corp. ............................. 100,000 6,993,750
Maxim Integrated Products, Inc.(b) .................. 90,000 7,104,375
Texas Instruments, Inc. ............................. 1,110,000 99,622,500
Xilinx, Inc.(b) ..................................... 90,000 7,076,250
------------
247,215,788
------------
Entertainment--1.3%
Time Warner, Inc. ................................... 320,000 22,300,000
Walt Disney Co. (The) ............................... 555,000 14,638,125
------------
36,938,125
------------
Equipment (Semiconductor)--1.0%
Applied Materials, Inc.(b) .......................... 104,000 9,340,500
KLA-Tencor Corp.(b) ................................. 90,000 7,126,875
Novellus Systems, Inc.(b) ........................... 90,000 6,975,000
Teradyne, Inc.(b) ................................... 160,000 6,160,000
------------
29,602,375
------------
Financial (Diversified)--6.0%
American Express Co. ................................ 108,000 16,632,000
Citigroup, Inc. ..................................... 1,588,575 85,981,622
Freddie Mac ......................................... 481,600 26,036,500
Morgan Stanley Dean Witter & Co. .................... 424,500 46,827,656
------------
175,477,778
------------
<PAGE>
SHARES VALUE
--------- ------------
Health Care (Diversified)--2.4%
Bristol-Myers Squibb Co. ............................ 462,500 $ 35,525,781
Warner-Lambert Co. .................................. 440,000 35,117,500
------------
70,643,281
------------
Health Care (Drugs-Major Pharmaceuticals)--4.6%
Genentech, Inc.(b) .................................. 134,000 19,530,500
Lilly (Eli) & Co. ................................... 275,000 18,940,625
Merck & Co., Inc. ................................... 71,000 5,648,938
Pfizer, Inc. ........................................ 1,918,600 75,784,700
Schering-Plough Corp. ............................... 305,200 15,107,400
------------
135,012,163
------------
Health Care (Medical Products & Supplies)--2.1%
Medtronic, Inc. ..................................... 1,740,000 60,247,500
Household Products (Non-Durable)--0.6%
Colgate-Palmolive Co. ............................... 270,000 16,335,000
Insurance (Multi-Line)--1.1%
American International Group, Inc. .................. 300,000 30,881,250
Investment Banking/Brokerage--1.1%
Goldman Sachs Group, Inc. (The) ..................... 470,000 33,370,000
Lodging-Hotels--1.0%
Carnival Corp. ...................................... 663,600 29,530,200
Manufacturing (Diversified)--2.9%
AlliedSignal, Inc. .................................. 436,400 24,847,525
Minnesota Mining & Manufacturing Co. ................ 95,000 9,030,938
Tyco International Ltd. ............................. 1,251,600 49,985,775
------------
83,864,238
------------
Restaurants--0.5%
McDonald's Corp. .................................... 365,000 15,056,250
Retail (Building Supplies)--3.2%
Home Depot, Inc. (The) .............................. 1,236,000 93,318,000
Retail (Computers & Electronics)--1.7%
Best Buy Co., Inc.(b) ............................... 425,000 23,614,063
Circuit City Stores-Circuit City Group .............. 600,000 25,612,500
------------
49,226,563
------------
Retail (Department Stores)--0.5%
Kohl's Corp.(b) ..................................... 210,000 15,710,625
Retail (Drug Stores)--1.0%
Walgreen Co. ........................................ 1,190,000 29,973,125
20 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Capital Growth Fund Series
SHARES VALUE
--------- ------------
Retail (General Merchandise)--4.3%
Costco Wholesale Corp.(b) ........................... 390,000 $ 31,321,875
Wal-Mart Stores, Inc. ............................... 1,659,200 94,781,800
126,103,675
-----------
Retail (Specialty)--1.0%
Staples, Inc.(b) .................................... 1,274,400 28,275,750
Services (Advertising/Marketing)--1.1%
Interpublic Group of Companies,
Inc. (The) .......................................... 800,000 32,500,000
Services (Commercial & Consumer)--1.0%
Cendant Corp.(b) .................................... 1,686,000 27,819,000
Services (Computer Systems)--1.4%
Electronic Data Systems Corp. ....................... 720,000 42,120,000
Services (Data Processing)--0.3%
Automatic Data Processing, Inc. ..................... 205,000 9,878,438
Telecommunications (Cellular/Wireless)--0.3%
VoiceStream Wireless Corp.(b) ....................... 80,000 7,900,000
Telecommunications (Long Distance)--7.2%
AT&T Corp. .......................................... 970,000 45,347,500
MCI WorldCom, Inc.(b) ............................... 1,860,204 159,628,756
Qwest Communications International,
Inc.(b) ............................................. 160,000 5,760,000
------------
210,736,256
Telephone--0.2% ------------
Bell Atlantic Corp. ................................. 90,000 5,844,375
------------
- --------------------------------------------------------------------------------
Total Common Stocks
(Identified cost $2,065,707,726) 2,872,551,228
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS--0.2%
Communications Equipment--0.2%
Nokia Oyj Sponsored ADR (Finland) ................... 60,000 6,933,750
- --------------------------------------------------------------------------------
Total Foreign Common Stocks
(Identified cost $5,801,160) 6,933,750
- --------------------------------------------------------------------------------
Total Long-Term Investments--98.7%
(Identified cost $2,071,508,886) 2,879,484,978
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- -------- ------------
<S> <C> <C> <C>
SHORT TERM OBLIGATIONS--1.0%
Commercial Paper--0.8%
Schering-Plough Corp. 5.35%,
11/3/99 ........................................ A-1+ $ 6,065 $ 6,063,198
Private Export Funding Corp. 5.27%,
11/9/99 ........................................ A-1+ 4,725 4,719,466
Albertson's, Inc. 5.35%, 11/10/99 .............. A-1 5,000 4,993,312
SBC Communications. Inc. 5.30%,
11/19/99 ....................................... A-1+ 5,000 4,986,750
Procter & Gamble Co. 5.30%,
11/30/99 ....................................... A-1+ 1,060 1,055,475
------------
21,818,201
------------
Federal Agency Securities--0.2%
FMC Discount Note 5.16%, 11/1/99 5,025 5,025,000
FHLB Discount Corp. 5.27%, 11/17/99 1,928 1,923,484
------------
6,948,484
------------
- ------------------------------------------------------------------------------------------
Total Short-Term Obligations
(Identified cost $28,766,685) 28,766,685
- ------------------------------------------------------------------------------------------
Total Investments--99.7%
(Identified Cost $2,100,275,571) 2,908,251,663(a)
Cash and receivables,less liabilities--0.3% 9,452,592
--------------
NET ASSETS--100.0% $2,917,704,255
==============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $839,676,913 and gross
depreciation of $32,717,515 for federal income tax purposes. At October 31,
1999, the aggregate cost of securities for federal income tax purposes was
$2,101,292,265.
(b) Non-income producing.
See Notes to Financial Statements 21
<PAGE>
Phoenix-Engemann Capital Growth Fund Series
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
Assets
Investment securities at value
(Identified cost $2,100,275,571) $2,908,251,663
Short-term investments held as collateral for
loaned securities 15,473,100
Cash 36,497
Receivables
Fund shares sold 406,581
Investment securities sold 13,608,731
Interest and dividends 912,766
Prepaid expenses 47,771
--------------
Total assets 2,938,737,109
--------------
Liabilities
Payables
Collateral on securities loaned 15,473,100
Fund shares repurchased 2,511,630
Investment advisory fee 1,531,420
Distribution fee 643,928
Transfer agent fee 532,395
Financial agent fee 52,736
Trustees' fee 4,216
Accrued expenses 283,429
--------------
Total liabilities 21,032,854
--------------
Net Assets $2,917,704,255
==============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $1,752,006,649
Accumulated net realized gain 357,721,514
Net unrealized appreciation 807,976,092
--------------
Net Assets $2,917,704,255
==============
Class A
Shares of beneficial interest outstanding,
$1 par value, unlimited authorization
(Net Assets $2,819,741,705) 95,241,624
Net asset value per share $29.61
Offering price per share $29.61/(1-4.75%) $31.09
Class B
Shares of beneficial interest outstanding,
$1 par value, unlimited authorization
(Net Assets $97,962,550) 3,416,054
Net asset value and offering price per share $28.68
<PAGE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
Investment Income
Dividends $ 16,873,240
Interest 6,613,260
Security lending 113,113
Foreign taxes withheld (49,328)
--------------
Total investment income 23,550,285
--------------
Expenses
Investment advisory fee 18,467,284
Distribution fee - Class A 6,839,777
Distribution fee - Class B 919,698
Financial agent fee 631,900
Transfer agent 3,360,854
Printing 366,552
Custodian 149,413
Professional 58,578
Trustees 16,604
Registration 15,180
Miscellaneous 31,877
--------------
Total expenses 30,857,717
Custodian fees paid indirectly (10,894)
--------------
Net expenses 30,846,823
--------------
Net investment loss (7,296,538)
--------------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 360,181,527
Net change in unrealized appreciation (depreciation)
on investments 360,915,113
--------------
Net gain on investments 721,096,640
--------------
Net increase in net assets resulting from
operations $ 713,800,102
==============
22 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Capital Growth Fund Series
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/99 10/31/98
-------------- --------------
<S> <C> <C>
From Operations
Net investment income (loss) $ (7,296,538) $ (6,323,768)
Net realized gain (loss) 360,181,527 240,243,310
Net change in unrealized appreciation (depreciation) 360,915,113 75,013,694
-------------- --------------
Increase (decrease) in net assets resulting from operations 713,800,102 308,933,236
-------------- --------------
From Distributions to Shareholders
Net realized gain-Class A (230,032,244) (489,479,916)
Net realized gain-Class B (7,477,746) (13,875,674)
-------------- --------------
Decrease in net assets from distributions to shareholders (237,509,990) (503,355,590)
-------------- --------------
From Share Transactions
Class A
Proceeds from sales of shares (10,503,608 and 15,305,754 shares, respectively) 288,870,150 379,717,014
Net asset value of shares issued from reinvestment of distributions
(8,345,723 and 20,640,114 shares, respectively) 213,735,576 454,706,097
Cost of shares repurchased (21,165,765 and 28,881,261 shares, respectively) (583,643,137) (730,281,016)
Capital contribution from Adviser (See Note 2) 4,561,466 --
-------------- --------------
Total (76,475,945) 104,142,095
-------------- --------------
Class B
Proceeds from sales of shares (754,665 and 825,152 shares, respectively) 20,206,456 20,213,833
Net asset value of shares issued from reinvestment of distributions
(276,189 and 585,412 shares, respectively) 6,893,757 12,698,430
Cost of shares repurchased (731,422 and 766,812 shares, respectively) (19,645,641) (18,666,026)
Capital contribution from Adviser (See Note 2) 158,551 --
-------------- --------------
Total 7,613,123 14,246,237
-------------- --------------
Increase (decrease) in net assets from share transactions (68,862,822) 118,388,332
-------------- --------------
Net increase (decrease) in net assets 407,427,290 (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 $0 and $0 respectively) $2,917,704,255 $2,510,276,965
============== ==============
</TABLE>
See Notes to Financial Statements 23
<PAGE>
Phoenix-Engemann Capital Growth Series
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------
Year Ended October 31
---------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 24.95 $ 27.83 $ 26.87 $ 24.92 $ 21.24
Income from investment operations(3)
Net investment income (loss) (0.06)(2) (0.06)(2) 0.14(2) 0.20(2) 0.26
Net realized and unrealized gain (loss) 7.06 2.73 5.62 3.63 4.53
---------- ---------- ---------- ---------- ----------
Total from investment operations 7.00 2.67 5.76 3.83 4.79
---------- ---------- ---------- ---------- ----------
Less distributions
Dividends from net investment income -- -- (0.21) (0.25) (0.30)
Dividends from net realized gains (2.39) (5.55) (4.59) (1.63) (0.81)
---------- ---------- ---------- ---------- ----------
Total distributions (2.39) (5.55) (4.80) (1.88) (1.11)
---------- ---------- ---------- ---------- ----------
Capital contribution from Adviser 0.05 -- -- -- --
---------- ---------- ---------- ---------- ----------
Change in net asset value 4.66 (2.88) 0.96 1.95 3.68
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 29.61 $ 24.95 $ 27.83 $ 26.87 $ 24.92
========== ========== ========== ========== ==========
Total return(1) 29.76%(4) 12.26% 24.81% 16.34% 23.91%
Ratios/supplemental data:
Net assets, end of period (thousands) $2,819,742 $2,434,217 $2,518,289 $2,347,471 $2,300,251
Ratio to average net assets of:
Operating expenses 1.07%(4) 1.08% 1.10% 1.17% 1.20%
Net investment income (0.23)% (0.22)% 0.53% 0.80% 0.92%
Portfolio turnover 100% 110% 196% 116% 109%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------------------------
Year Ended October 31
---------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 24.40 $ 27.51 $ 26.63 $ 24.74 $ 21.19
Income from investment operations(3)
Net investment income (loss) (0.26)(2) (0.24)(2) (0.06)(2) --(2) --(2)
Net realized and unrealized gain (loss) 6.88 2.68 5.57 3.61 4.60
---------- ---------- ---------- ---------- ----------
Total from investment operations 6.62 2.44 5.51 3.61 4.60
---------- ---------- ---------- ---------- ----------
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)
---------- ---------- ---------- ---------- ----------
Capital contribution from Adviser 0.05 -- -- -- --
---------- ---------- ---------- ---------- ----------
Change in net asset value 4.28 (3.11) 0.88 1.89 3.55
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 28.68 $ 24.40 $ 27.51 $ 26.63 $ 24.74
========== ========== ========== ========== ==========
Total return(1) 28.80%(4) 11.41% 23.89% 15.48% 23.02%
Ratios/supplemental data:
Net assets, end of period (thousands) $ 97,963 $ 76,060 $ 68,022 $ 45,326 $ 20,111
Ratio to average net assets of:
Operating expenses 1.82%(5) 1.83% 1.85% 1.93% 1.97%
Net investment income (0.99)% (0.97)% (0.25)% 0.01% 0.01%
Portfolio turnover 100% 110% 196% 116% 109%
</TABLE>
(1) Maximum sales load is not reflected in the total return calculation.
(2) Computed using average shares outstanding.
(3) 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.
(4) Total return includes the effect of the capital contribution from the
Adviser. (See Note 2). Without this contribution total return would have
been 29.54% and 28.58% for Class A and Class B, respectively.
(5) For the year ended October 31, 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.
24 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin High Yield Fund Series
A Discussion with the Fund's Portfolio Manager, Tim Norman, CFA
Q: What is the Fund's investment objective?
A: The Fund's primary investment objective is high current income with a
secondary objective of capital growth. The Fund invests in U.S. high-yield
corporate bonds as well as government and corporate bonds issues issued by
foreign countries. It is suitable for aggressive investors who seek high current
income or who wish to diversify their portfolios. Investors should note that
high-yield bonds generally are subject to greater market fluctuations and risk
of loss of income and principal than are investments in lower-yielding bonds.
Also, foreign investments pose added risks, such as currency fluctuation and
political and economic uncertainty.
Q: How did the Fund perform during this fiscal year?
A: This year we implemented a more defensive strategy to increase the overall
quality of the portfolio, lower volatility, and preserve capital. For the 12
months ended October 31, 1999, the Fund's Class A shares returned 10.16%, Class
B shares returned 9.37%, and Class C shares returned 9.38% compared with a
return of only 5.54% for the CS First Boston High Yield Index(1) and an average
return of 6.61% for a universe of 306 high-yield funds, according to Lipper Inc.
All performance figures assume reinvestment of distributions and exclude the
effect of sales charges.
Q: What factors contributed to the Fund's strong relative performance?
A: The Fund has benefited from the general shift in market sentiment away from
the "flight to quality" that was characteristic of last year. We assumed a more
defensive or cautious approach to the high-yield market about midyear and into
the second half of 1999. We raised our cash position in advance of a relatively
weak third quarter and increased the overall credit quality of the portfolio.
Performance was also helped by our industry sector weightings. We
participated in the more stable returns from telecommunications, cable, energy
and gaming sectors and avoided poorer performing sectors, such as health care,
chemicals, and entertainment theatres. Our exposure to emerging markets, albeit
lower than in 1998, also added to performance as we saw general improvement in
global economies, following the crisis in the second half of last year.
Q: How is the Fund currently positioned?
A: We continue to look at all high-yield markets, consistent with our global
high-yield strategy. Currently, the Fund has approximately a 16% exposure to
emerging market high-yield debt and a 9% exposure to non-U.S. non-emerging
markets--Europe, the U.K., and Canada. We continue to increase our exposure to
the European high-yield market through the purchase of both U.S.
dollar-denominated bonds and more recently, euro dollar-denominated issues. Thus
far, all Euro dollar purchases have been accompanied by cross currency asset
swaps, effectively hedging the currency risk.
The largest industry sector weighting remains telecommunications, with an
emphasis on companies that provide voice and data services to the business
sector. Ongoing consolidation on a worldwide basis continues to be a catalyst to
higher valuations in the sector. Additional industry overweightings include
cable (primarily European companies) and gaming. We remain underweighted in
cyclical sectors, such as chemicals, metals/mining, and paper/forest products.
<PAGE>
Q: What is your near-term outlook?
A: Yield levels are currently approaching those available in the third quarter
of 1998 in the midst of the short-lived global economic crisis. The underlying
prospects for growth in the major economies around the world appear reasonably
good. Year-end concerns about Y2K appear to be abating.
These factors support the high-yield market heading into a new year, which
in the past has been an opportune time to be overweighted in the high-yield
sector. Of course, past performance is not a guarantee of future performance.
Cash that was leaving the high-yield sector in the third quarter of this year
has been recently flowing back via high-yield mutual funds, which provides
further support, in our opinion, for the sector. Our enthusiasm is tempered
somewhat by the decline in overall credit quality of companies in the sector,
and we will continue to focus on higher quality companies.
November 15, 1999
- ---------------
(1) The CS First Boston High Yield Index is an unmanaged, commonly used measure
of total return performance of high-yield bonds. The Index is not available
for direct investment.
25
<PAGE>
Phoenix-Goodwin High Yield Fund Series
<TABLE>
<CAPTION>
Average Annual Total Returns(1) PERIODS ENDING 10/31/99
INCEPTION INCEPTION
1 YEAR 5 YEAR 10 YEAR TO 10/31/99 DATE
------ ------ ------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Class A Shares at NAV(2) 10.16% 8.26% 9.48% -- --
Class A Shares at POP(3) 4.93 7.21 8.95 -- --
Class B Shares at NAV(2) 9.37 7.45 -- 5.02% 2/16/94
Class B Shares with CDSC(4) 5.39 7.45 -- 5.02 2/16/94
Class C Shares at NAV(2) 9.38 -- -- (3.65) 2/27/98
Class C Shares with CDSC(4) 9.38 -- -- (3.65) 2/27/98
CS First Boston High Yield Index(7) 5.54 8.50 10.75 Note 5 Note 5
</TABLE>
(1) Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
(2) "NAV" (Net Asset Value) total returns do not include the effect of any sales
charge.
(3) "POP" (Public Offering Price) total returns include the effect of the
maximum front-end 4.75% sales charge.
(4) CDSC (contingent deferred sales charge) is applied to redemptions of certain
classes of shares that do not have a sales charge applied at the time of
purchase. CDSC charges for B shares decline from 5% to 0% over a five year
period. CDSC charges for C shares are 1% in the first year and 0%
thereafter.
(5) Index performance is 6.93% for Class B (since 2/28/94) and (0.72)% for Class
C (since 2/28/98), respectively.
(6) This chart illustrates POP returns on Class A shares for ten years. Returns
on Class B and Class C shares will vary due to differing sales charges.
(7) The CS First Boston High Yield Index is an unmanaged, commonly used measure
of total return performance of high-yield bonds. The index's performance
does not reflect sales charges.
All returns represent past performance which may not be indicative of future
performance. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
<PAGE>
Growth of $10,000 PERIODS ENDING 10/31/99
[Edgar representation of data points used in printed graphics]
<TABLE>
<CAPTION>
Phoenix-Goodwin High Yield Fund Class A
# S&P 500 Index
<S> <C> <C>
10/31/1989 $ 9,525 $10,000
10/31/1990 $ 9,050 $ 9,111
10/31/1991 $11,473 $13,221
10/30/1992 $13,340 $15,257
10/29/1993 $15,258 $18,162
10/31/1994 $15,841 $18,461
10/31/1995 $17,613 $21,275
10/31/1996 $20,423 $23,503
10/31/1997 $23,493 $26,969
10/30/1998 $21,385 $26,297
10/29/1999 $23,557 $27,753
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
10/31/89 in Class A shares and reflects the maximum sales charge of 4.75% on the
initial investment. Performance assumes dividends and capital gains are
reinvested. The performance of other share classes will be greater or less than
that shown based on differences in inception dates, fees and sales charges.
Sector Weightings 10/31/99
As a percentage of bond holdings
[PIE CHART GRAPHIC OMITTED]
Corporate 75%
Foreign Corporate 16
Non-Agency Mortgage Backed 5
Foreign Convertible 1
Foreign Government 1
Asset-Backed 1
Convertible 1
26
<PAGE>
Phoenix-Goodwin High Yield Fund Series
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Ten Largest Holdings at October 31, 1999 (as a percentage of total net assets)
------------------------------------------------------------------------------
<S> <C> <C>
1. Poland Communications, Inc. 2.2% 6. Benton Oil & Gas Co. 11.625%, 5/1/03 1.7%
Cable TV industry corporate bond Oil and gas properties corporate bond
2. NTL, Inc. Series A 2.0% 7. Splitrock Services, Inc. 1.6%
Telecommunications industry corporate bond Data communication services corporate bond
3. United Rentals, Inc. 1.9% 8. Portola Packaging, Inc. 1.6%
Equipment rental services industry corporate bond Container industry corporate bond
4. NTL, Inc. Series B 1.8% 9. SASCO 1.6%
bond Non-agency mortgage-backed security Telecommunications industry corporate
5. Interamericas Communications Corp. 1.8% 10. Anacomp, Inc. Series D 1.6%
Latin American telecommunications company U.S.-based document handling and service company
corporate bond
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
INVESTMENTS AT OCTOBER 31, 1999
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ----- -----
<S> <C> <C>
ASSET-BACKED SECURITIES--0.6%
Pennant CBO Ltd. 1A, D 13.43%,
3/14/11 ............................................. Ba $ 3,000 $ 2,917,500
- ------------------------------------------------------------------------------------------
Total Asset-Backed Securities
(Identified cost $2,915,394) ........................ 2,917,500
- ------------------------------------------------------------------------------------------
CORPORATE BONDS--65.9%
Aerospace/Defense--1.4%
Stellex Industries, Inc. Series B 9.50%,
11/1/07 ............................................. Caa 8,500 6,194,375
Auto Parts & Equipment--1.0%
Cambridge Industries, Inc. Series B
10.25%, 7/15/07 ..................................... B 5,000 3,306,250
Tenneco, Inc. 144A 11.625%,
10/15/09(b) ......................................... B 1,200 1,206,000
---------
4,512,250
---------
Biotechnology--0.2%
Unilab Finance Corp. 144A 12.75%,
10/1/09(b) .......................................... B 900 904,500
Broadcasting (Television, Radio & Cable)--8.6%
Adelphia Communications Corp. 9.50%,
3/1/05 .............................................. B 3,550 3,612,125
Adelphia Communications Corp. Series
B 8.375%, 2/1/08 .................................... B 4,150 3,901,000
CSC Holdings, Inc. 7.625%, 7/15/18 .................. Ba 4,000 3,700,000
Charter Communications Holdings LLC
8.625%, 4/1/09 ...................................... B 5,000 4,737,500
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ----- -----
<S> <C> <C>
EchoStar Communications Corp. 9.375%,
2/1/09 ......................................... B $ 4,900 $4,851,000
Fox/Liberty Networks LLC 8.875%,
8/15/07 ........................................ Ba 850 864,875
Poland Communications, Inc. Series B
9.875%, 11/1/03 ................................ B 9,700 9,821,250
Production Resource Group 11.50%,
1/15/08 ........................................ Caa 3,000 2,700,000
UnitedGlobalCom, Inc. Series B 0%,
2/15/08(d) ..................................... B 8,000 4,590,000
----------
38,777,750
----------
Building Materials--0.6%
Nortek, Inc. Series B 9.125%, 9/1/07 ........... B 3,000 2,917,500
Chemicals (Specialty)--0.5%
Gentek, Inc. 144A 11%, 8/1/09(b) ............... B 2,400 2,424,000
Communications Equipment--2.2%
Metromedia Fiber Network, Inc. Series
B 10%, 11/15/08 ................................ B 3,880 3,841,200
Park N View, Inc. Series B 13%,
5/15/08 ........................................ B 4,000 1,900,000
Williams Communications Group, Inc.
10.875%, 10/1/09 ............................... B 4,000 4,110,000
----------
9,851,200
----------
</TABLE>
See Notes to Financial Statements
27
<PAGE>
Phoenix-Goodwin High Yield Fund Series
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ----- -----
<S> <C> <C>
Computers (Networking)--1.6%
Splitrock Services, Inc. Series B 11.75%,
7/15/08 .......................................... NR $ 8,000 $ 7,360,000
Computers (Software & Services)--7.4%
Anacomp, Inc. Series B 10.875%,
4/1/04 ........................................... B 5,200 5,271,500
Anacomp, Inc. Series D 10.875%,
4/1/04 ........................................... B 7,000 7,096,250
ICG Holdings, Inc. 0%, 9/15/05(d) ................ B 8,000 6,880,000
PSINet, Inc. Series B 10%, 2/15/05 ............... B 3,000 2,955,000
PSINet, Inc. 11.50%, 11/1/08 ..................... B 3,400 3,570,000
Rhythms NetConnections, Inc. 12.75%,
4/15/09 .......................................... B 1,500 1,355,625
WAM!NET, Inc. Series B 0%, 3/1/05(c)(d) .......... CCC+ 11,000 6,476,250
----------
33,604,625
----------
Containers (Metal & Glass)--1.6%
Portola Packaging, Inc. 10.75%,
10/1/05 .......................................... B 7,000 7,236,250
Entertainment--1.2%
SFX Entertainment, Inc. Series B 9.125%,
2/1/08 ........................................... B 2,500 2,312,500
SFX Entertainment, Inc. 9.125%,
12/1/08 .......................................... B 3,500 3,237,500
----------
5,550,000
----------
Foods--1.5%
SUPERVALU, Inc. 9.75%, 6/15/04 ................... B 6,500 6,906,250
Gaming, Lottery & Pari-mutuel Companies--2.3%
Horseshoe Gaming LLC Series B 9.375%,
6/15/07 .......................................... B 2,450 2,437,750
Venetian Casino Resort LLC 10%,
11/15/05(d) ...................................... Caa 3,500 2,668,750
Waterford Gaming LLC 144A 9.50%,
3/15/10(b) ....................................... B 5,323 5,289,731
----------
10,396,231
----------
Health Care (Drugs-Major Pharmaceuticals)--1.3%
Global Health Sciences, Inc. 11%,
5/1/08 ........................................... Caa 2,900 1,682,000
Schein Pharmaceutical, Inc. 9.178%,
12/15/04(d) ...................................... B 4,800 4,080,000
----------
5,762,000
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ----- -----
<S> <C> <C>
Homebuilding--1.5%
Beazer Homes USA, Inc. 9%, 3/1/04 ................ Ba $ 3,000 $ 2,966,250
K.Hovnanian Enterprises, Inc. 9.125%,
5/1/09 ........................................... Ba 4,000 3,670,000
----------
6,636,250
----------
Insurance (Multi-Line)--0.8%
Willis Corroon Corp. 9%, 2/1/09 .................. Ba 4,000 3,540,000
Leisure Time (Products)--1.4%
Bally Total Fitness Holding Corp. Series
D 9.875%, 10/15/07 ............................... B 6,700 6,348,250
Manufacturing (Specialized)--0.8%
Fisher Scientific International, Inc. 9%,
2/1/08 ........................................... B 4,000 3,780,000
Metals Mining--0.0%
NSM Steel Ltd. Series B 144A 12.25%,
2/1/08(b)(e)(f) .................................. Ca 7,500 75,000
Oil & Gas (Exploration & Production)--3.2%
Bellwether Exploration Co. 10.875%,
4/1/07 ........................................... B 5,500 4,991,250
Benton Oil & Gas Co. 11.625%, 5/1/03 ............. B 9,800 7,533,750
Benton Oil & Gas Co. 9.375%, 11/1/07 ............. B 2,750 1,729,062
----------
14,254,062
----------
Oil (Domestic Integrated)--1.2%
RBF Finance Co. 11.375%, 3/15/09 ................. Ba 5,000 5,306,250
Paper & Forest Products--2.8%
Buckeye Technologies, Inc. 8%,
10/15/10 ......................................... Ba $ 7,365 $ 6,840,244
S.D. Warren Co. PIK 14%, 12/15/06 ................ NR 5,330 5,969,879
----------
12,810,123
----------
Personal Care--1.1%
Revlon Consumer Products Corp. 9%,
11/1/06 .......................................... B 3,000 2,370,000
Revlon Consumer Products Corp. 8.625%,
2/1/08 ........................................... Caa 4,650 2,522,625
----------
4,892,625
----------
Retail (Home Shopping)--0.4%
U.S. Office Products Co. 9.75%,
6/15/08 .......................................... Caa 3,800 2,014,000
</TABLE>
See Notes to Financial Statements
28
<PAGE>
Phoenix-Goodwin High Yield Fund Series
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ----- -----
Retail (Specialty)--1.2%
<S> <C> <C>
Musicland Group, Inc. 9%, 6/15/03 ................. B $ 5,100 $ 4,679,250
Musicland Group, Inc. Series B 9.875%,
3/15/08 ........................................... B 1,000 845,000
----------
5,524,250
----------
Services (Advertising/Marketing)--1.5%
Lamar Media Corp. 9.25%, 8/15/07 .................. B 6,500 6,646,250
Services (Commercial & Consumer)--1.9%
United Rentals, Inc. Series B 9.50%,
6/1/08 ............................................ B 9,125 8,463,437
Telecommunications (Cellular/Wireless)--1.4%
Omnipoint Corp. 144A 11.50%,
9/15/09(b) ........................................ B 2,000 2,100,000
TeleCorp PCS, Inc. 144A 0%,
4/15/09(b)(d) ..................................... B 7,000 4,305,000
----------
6,405,000
----------
Telecommunications (Long Distance)--10.4%
Global Crossing Holdings Ltd. 9.625%,
5/15/08 ........................................... Ba 5,730 5,801,625
Interamericas Communications Corp.
14%, 10/27/07 ..................................... NR 10,000 8,000,000
KMC Telecom Holdings, Inc. 0%,
2/15/08(d) ........................................ Caa 8,000 4,320,000
Telecommunications (Long Distance)--continued
KMC Telecom Holdings, Inc. 144A
13.50%, 5/15/09(b) ................................ Caa 3,000 2,947,500
NTL, Inc. Series A 0%, 4/15/05(d) ................. B 9,000 8,910,000
NTL, Inc. Series B 10%, 2/15/07 ................... B 8,000 8,160,000
RCN Corp. 0%, 10/15/07(d) ......................... B 7,750 5,376,562
RCN Corp. Series B 9.80%, 2/15/08(d) .............. B 5,525 3,522,188
----------
47,037,875
----------
Telephone--1.7%
Pathnet, Inc. 12.25%, 4/15/08 ..................... NR 5,825 3,203,750
Teligent, Inc. 11.50%, 12/1/07 .................... Caa 5,000 4,600,000
7,803,750
Textiles (Apparel)--0.7%
Collins & Aikman Corp. 11.50%,
4/15/06 ........................................... B 3,440 3,268,000
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ----- -----
<S> <C> <C>
Truckers--2.5%
Hvide Marine, Inc. 8.375%, 2/15/08(e)(f) ........... C $ 2,500 $ 1,025,000
Sea Containers Ltd. 7.875%, 2/15/08 ................ Ba 8,000 7,040,000
Ventura Group, Inc. Series B 10.25%,
6/30/08 ............................................ B 3,600 3,312,000
-----------
11,377,000
-----------
- ------------------------------------------------------------------------------------------
Total Corporate Bonds
(Identified cost $338,756,226) 298,579,053
- ------------------------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED SECURITIES--4.2%
First Chicago/Lennar Trust 97-CHL1,
E 144A 8.07%, 2/28/11(b)(c)(d)(g) .................. B 10,000 6,857,813
SASCO Floating Rate Commercial Mortgage
98-C3A, H 144A 5.959%, 4/25/03(b)(d) ............... Ba 8,000 7,098,568
Salomon Brothers Mortgage Securities
VII 95-C, 1 144A 6.783%, 9/30/08(b)(d) ............. B 5,987 5,238,557
- ------------------------------------------------------------------------------------------
Total Non-Agency Mortgage-Backed Securities
(Identified cost $19,604,057) 19,194,938
- ------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--0.9%
Brazil--0.5%
Republic of Brazil NMB-L 7%,
4/15/09(d) ......................................... B 3,000 2,197,500
Dominican Republic--0.4%
Dominican Republic 6%, 8/30/24(c)(d) ............... B+ 2,500 1,650,000
- ------------------------------------------------------------------------------------------
Total Foreign Government Securities
(Identified cost $4,018,070) 3,847,500
- ------------------------------------------------------------------------------------------
FOREIGN CORPORATE BONDS--14.4%
Argentina--1.1%
Cablevision SA Series 5, Tranche 1
144A 13.75%, 5/1/09(b) ............................. B 1,000 950,000
Imasac SA 144A 11%, 5/2/05(b) ...................... B 3,230 1,970,300
Multicanal SA 13.125%, 4/15/09 ..................... NR 2,000 1,910,000
-----------
4,830,300
-----------
Bahamas--1.8%
Sun International Hotels Ltd. 9%, 3/15/07 .......... Ba 6,000 5,670,000
Sun International Hotels Ltd. 8.625%,
12/15/07 ........................................... Ba 3,000 2,767,500
-----------
8,437,500
-----------
</TABLE>
See Notes to Financial Statements
29
<PAGE>
Phoenix-Goodwin High Yield Fund Series
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ----- -----
<S> <C> <C>
Brazil--2.7%
Globo Communicacoes e Participacoes
SA RegS 10.50%, 12/20/06 ....................... B $ 5,000 $ 3,875,000
Globo Communicacoes e Participacoes
SA 144A 10.625%, 12/5/08(b) .................... B 3,500 2,633,750
Localiza Rent a Car 10.25%, 10/1/05 ............ B 8,000 5,800,000
----------
12,308,750
----------
Canada--2.6%
Clearnet Communications, Inc. 0%,
12/15/05(d) .................................... B 5,000 4,731,250
Clearnet Communications, Inc. 0%,
5/1/09(d) ...................................... B 5,500 3,327,500
Hurricane Hydrocarbons Ltd. 144A 11.75%,
11/1/04(b)(e)(f) ............................... C 8,000 1,480,000
Imax Corp. 7.875%, 12/1/05 ..................... Ba 680 629,000
Rogers Cantel, Inc. 9.375%, 6/1/08 ............. Ba 1,500 1,610,625
----------
11,778,375
----------
China--0.2%
Greater Beijing First Expressways Ltd.
9.50%, 6/15/07 ................................. Ba 1,650 825,000
Greece--0.6%
Fage Dairy Industries SA 9%, 2/1/07 ............ B 3,000 2,741,250
Indonesia--0.7%
APP Finance II Mauritius Ltd. 12%,
12/29/49(d) .................................... Caa 4,900 2,964,500
Ireland--0.6%
Esat Telecom Group PLC 11.875%,
11/1/09(h) ..................................... B 2,700 2,926,516
Mexico--0.6%
Alestra SA de RL de C.V. 144A 12.125%,
5/15/06(b) ..................................... B 2,750 2,646,875
Netherlands--0.9%
United Pan-Europe Communications NV
144A 11.25%, 11/1/09(b)(h) ..................... B 4,000 4,225,219
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ----- -----
<S> <C> <C>
Poland--1.5%
Netia Holdings BV Series B 0%,
11/1/07(d) ....................................... B $ 3,750 $ 2,390,625
Poland Telecom Finance Series B 14%,
12/1/07 .......................................... NR 5,000 4,400,000
----------
6,790,625
----------
United Kingdom--1.1%
Global Tele-Systems, Ltd. 11.50%,
12/15/07 ......................................... Caa 5,000 5,137,500
- ------------------------------------------------------------------------------------------
Total Foreign Corporate Bonds
(Identified cost $79,104,391) 65,612,410
- ------------------------------------------------------------------------------------------
CONVERTIBLE BONDS--0.5%
Communications Equipment--0.5%
American Tower Corp. Cv. 144A 6.25%,
10/15/09(b) ...................................... NR 2,500 2,475,000
- ------------------------------------------------------------------------------------------
Total Convertible Bonds
(Identified cost $2,500,000) 2,475,000
- ------------------------------------------------------------------------------------------
FOREIGN CONVERTIBLE BONDS--1.3%
Russia--1.3%
Lukinter Finance Lukoil Cv. RegS
3.50%, 5/6/02(c) ................................. CCC- 1,000 735,000
Lukinter Finance Lukoil Cv. 144A 1%,
11/3/03(b)(c) .................................... CCC- 9,500 5,177,500
- ------------------------------------------------------------------------------------------
Total Foreign Convertible Bonds
(Identified cost $10,784,429) 5,912,500
- ------------------------------------------------------------------------------------------
SHARES
------
PREFERRED STOCKS--3.4%
Telecommunications (Cellular/Wireless)--1.2%
Nextel Communications, Inc. Series D 13% 50,097 5,360,368
Telecommunications (Long Distance)--2.2%
Global Crossing Holdings Ltd. PIK 10.50% 62,500 6,593,750
IXC Communications, Inc. Series B 12.50% 34,053 3,669,160
----------
10,262,910
----------
- ------------------------------------------------------------------------------------------
Total Preferred Stocks
(Identified cost $14,843,773) 15,623,278
- ------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
30
<PAGE>
Phoenix-Goodwin High Yield Fund Series
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<C> <S> <S>
COMMON STOCKS--0.2%
Computers (Networking)--0.2%
Splitrock Services, Inc.(e) ........................... 34,202 $ 748,169
Specialty Printing--0.0%
Sullivan Holdings, Inc. Class C(e)(i) ................. 76 0
- -----------------------------------------------------------------------------
Total Common Stocks
(Identified cost $397,880) 748,169
- -----------------------------------------------------------------------------
WARRANTS--0.9%
Communications Equipment--0.0%
Loral Space & Communications, Inc.
Warrants(e) ........................................... 8,000 80,000
Park N View, Inc. Warrants(e) ......................... 4,000 40
---------
80,040
---------
Computers (Software & Services)--0.2%
WAM!NET, Inc. Warrants(e) ............................. 33,000 750,750
Metals Mining--0.0%
NSM Steel Ltd. 144A Warrants(b)(e) .................... 4,748,195 47,482
Telecommunications (Long Distance)--0.7%
FirstCom Corp. 144A Warrants(b)(e) .................... 420,000 2,520,000
KMC Telecom Holdings, Inc. 144A
Warrants(b)(e) ........................................ 8,000 8,000
MetroNet Communications Corp. 144A
Warrants (Canada)(b)(e) ............................... 4,000 437,188
---------
2,965,188
---------
Telephone--0.0%
Pathnet, Inc. 144A Warrants(b)(e) ..................... 6,000 60,000
- -----------------------------------------------------------------------------
Total Warrants
(Identified cost $108,190) 3,903,460
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Total Long-Term Investments--92.3%
(Identified cost $473,032,410) 418,813,808
- -----------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ----- -----
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--5.6%
Commercial Paper--5.6%
Albertson's, Inc. 5.27%, 11/2/99 .................. A-1 $ 3,272 $ 3,271,521
Gannett Co., Inc. 5.30%, 11/5/99 .................. A-1+ 1,080 1,079,364
Donnelley (R.R.) & Sons Co. 5.30%,
11/8/99 ........................................... A-1 1,680 1,678,269
BellSouth Telecommunications, Inc.
5.26%, 11/9/99 .................................... A-1+ 1,895 1,892,785
Albertson's, Inc. 5.35%, 11/10/99 ................. A-1 3,550 3,545,252
AT&T Corp. 5.28%, 11/15/99 ........................ A-1+ 1,500 1,496,920
Donnelley (R.R.) & Sons Co. 5.30%,
11/17/99 .......................................... A-1 2,160 2,154,912
Household Finance Corp. 5.28%,
11/17/99 .......................................... A-1 2,500 2,494,133
SBC Communications, Inc. 5.32%,
11/19/99 .......................................... A-1+ 2,500 2,493,350
Coca-Cola Co. 5.25%, 11/23/99 ..................... A-1+ 1,500 1,495,187
Vermont American Corp. 5.28%,
11/24/99 .......................................... A-1+ 3,879 3,865,915
- ------------------------------------------------------------------------------------------
Total Short-Term Obligations
(Identified cost $25,467,608) 25,467,608
- ------------------------------------------------------------------------------------------
Total Investments--97.9%
(Identified Cost $498,500,018) 444,281,416(a)
Cash and receivables, less liabilites--2.1% 9,374,868
------------
NET ASSETS--100.0% $453,656,284
============
</TABLE>
- ---------------------
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $9,958,923 and gross
depreciation of $64,189,125 for federal income tax purposes. At October 31,
1999, the aggregate cost of securities for federal income tax purposes was
$498,511,618.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31,
1999, these securities amounted to a value of $63,077,983 or 13.9% of net
assets.
(c) As rated by Standard & Poor's, Duff & Phelps or Fitch.
(d) Variable or step coupon security; interest rate reflects the rate currently
in effect.
(e) Non-income producing.
(f) Security in default.
(g) All or portion segregated as collateral.
(h) Par value represents Euros.
(i) Security valued at fair value as determined in good faith by or under the
direction of the Trustees.
See Notes to Financial Statements
31
<PAGE>
Phoenix-Goodwin High Yield Fund Series
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
Assets
Investment securities at value
(Identified cost $498,500,018) $444,281,416
Cash 108,132
Foreign currency at value (Identified cost $4,242,483) 4,246,455
Receivables
Interest and dividends 9,992,411
Investment securities sold 189,853
Fund shares sold 387,810
Prepaid expenses 10,051
------------
Total assets 459,216,128
------------
Liabilities
Payables
Investment securities purchased 4,246,457
Fund shares repurchased 664,511
Investment advisory fee 249,378
Distribution fee 134,974
Transfer agent fee 125,612
Financial agent fee 27,413
Trustees' fee 4,216
Accrued expenses 107,283
------------
Total liabilities 5,559,844
------------
Net Assets $453,656,284
============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $607,436,561
Undistributed net investment income 1,236,279
Accumulated net realized loss (100,801,926)
Net unrealized depreciation (54,214,630)
------------
Net Assets $453,656,284
============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $391,057,147) 51,924,570
Net asset value and offering price per share $7.53
Offering price per share $7.53/(1-4.75%) $7.91
Class B
Shares of beneficial interest outstanding,
$1 par value, unlimited authorization (Net Assets
$59,547,113) 7,933,366
Net asset value and offering price per share $7.51
Class C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $3,052,024) 405,539
Net asset value and offering price per share $7.53
<PAGE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
Investment Income
Interest $54,386,240
Dividends 1,352,015
-------------
Total investment income 55,738,255
-------------
Expenses
Investment advisory fee 3,333,625
Distribution fee, Class A 1,115,610
Distribution fee, Class B 640,648
Distribution fee, Class C 25,567
Financial agent fee 327,661
Transfer agent 760,855
Printing 89,035
Custodian 50,412
Professional 33,364
Registration 29,055
Trustees 16,908
Miscellaneous 12,364
-------------
Total expenses 6,435,104
Custodian fees paid indirectly (25,595)
-------------
Net expenses 6,409,509
-------------
Net investment income 49,328,746
-------------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized loss on securities (35,956,557)
Net change in unrealized appreciation (depreciation)
on investments 37,965,991
Net change in unrealized appreciation (depreciation)
on foreign currency and foreign currency transactions 3,972
-------------
Net gain on investments 2,013,406
-------------
Net increase in net assets resulting from operations $51,342,152
=============
32 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin High Yield Fund Series
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/99 10/31/98
---------- ----------
<S> <C> <C>
From Operations
Net investment income (loss) $ 49,328,746 $ 54,925,644
Net realized gain (loss) (35,956,557) (2,965,994)
Net change in unrealized appreciation (depreciation) 37,969,963 (98,402,826)
------------- -------------
Increase (decrease) in net assets resulting from operations 51,342,152 (46,443,176)
------------- -------------
From Distributions to Shareholders
Net investment income, Class A 45,037,890) (48,737,532)
Net investment income, Class B (5,920,213) (5,729,283)
Net investment income, Class C (234,211) (77,895)
------------- -------------
Decrease in net assets from distributions to shareholders (51,192,314) (54,544,710)
------------- -------------
From Share Transactions
Class A
Proceeds from sales of shares (18,425,232 and 14,608,985 shares, respectively) 143,288,356 131,624,797
Net asset value of shares issued from reinvestment of distributions
(3,230,108 and 2,974,231 shares, respectively) 25,061,675 26,360,963
Cost of shares repurchased (26,344,264 and 19,613,171 shares, respectively) (205,309,631) (175,549,018)
------------- -------------
Total (36,959,600) (17,563,258)
------------- -------------
Class B
Proceeds from sales of shares (2,899,381 and 4,637,394 shares, respectively) 22,455,385 41,776,158
Net asset value of shares issued from reinvestment of distributions
(278,064 and 251,098 shares, respectively) 2,147,868 2,210,523
Cost of shares repurchased (3,357,007 and 2,529,603 shares, respectively) (25,931,082) (22,197,043)
------------- -------------
Total (1,327,829) 21,789,638
------------- -------------
Class C
Proceeds from sales of shares (269,525 and 276,001 shares, respectively) 2,100,156 2,487,472
Net asset value of share issued from reinvestment of distributions
(10,955 and 3,918 shares, respectively) 84,719 33,626
Cost of shares repurchased (96,278 and 58,582 shares, respectively) (745,241) (495,138)
------------- -------------
Total 1,439,634 2,025,960
------------- -------------
Increase (decrease) in net assets from share transactions (36,847,795) 6,252,340
------------- -------------
Net increase (decrease) in net assets (36,697,957) (94,735,546)
Net Assets
Beginning of period 490,354,241 585,089,787
------------- -------------
End of period [including undistributed net investment income (loss) of $453,656,284 $490,354,241
$1,236,279 and $2,545,859, respectively] ============= =============
</TABLE>
See Notes to Financial Statements 33
<PAGE>
Phoenix-Goodwin High Yield Fund Series
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------
Year Ended October 31
-------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $7.55 $9.09 $8.63 $8.17 $8.11
Income from investment operations
Net investment income (loss) 0.76 0.83 0.80 0.78 0.80
Net realized and unrealized gain (loss) -- (1.56) 0.46 0.46 0.04
----- ----- ----- ----- -----
Total from investment operations 0.76 (0.73) 1.26 1.24 0.84
----- ----- ----- ----- -----
Less distributions
Dividends from net investment income (0.78) (0.81) (0.80) (0.78) (0.78)
----- ----- ----- ----- -----
Total distributions (0.78) (0.81) (0.80) (0.78) (0.78)
----- ----- ----- ----- -----
Change in net asset value (0.02) (1.54) 0.46 0.46 0.06
----- ----- ----- ----- -----
Net asset value, end of period $7.53 $7.55 $9.09 $8.63 $8.17
===== ===== ===== ===== =====
Total return(1) 10.16% (8.97)% 15.03% 15.95% 11.19%
Ratios/supplemental data:
Net assets, end of period (thousands) $391,057 $427,659 $532,906 $501,265 $507,855
Ratio to average net assets of:
Operating expenses 1.16%(4) 1.12% 1.11% 1.17% 1.21%
Net investment income 9.71% 9.13% 8.76% 9.21% 10.01%
Portfolio turnover 73% 103% 167% 162% 147%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CLASS B CLASS C
------------------------------------------------------ -------------------
From
Year Inception
Year Ended October 31 Ended 2/27/98 to
------------------------------------------------------ 10/31/99 10/31/98
1999 1998 1997 1996 1995 -------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $7.52 $9.07 $8.63 $8.19 $8.13 $7.54 $9.31
Income from investment operations
Net investment income (loss) 0.70 0.76 0.73 0.71 0.72 0.71 0.50
Net realized and unrealized gain (loss) 0.01 (1.55) 0.46 0.45 0.07 -- (1.76)
----- ----- ----- ----- ----- ----- -----
Total from investment operations 0.71 (0.79) 1.19 1.16 0.79 0.71 (1.26)
----- ----- ----- ----- ----- ----- -----
Less distributions
Dividends from net investment income (0.72) (0.76) (0.75) (0.72) (0.73) (0.72) (0.51)
----- ----- ----- ----- ----- ----- -----
Total distributions (0.72) (0.76) (0.75) (0.72) (0.73) (0.72) (0.51)
----- ----- ----- ----- ----- ----- -----
Change in net asset value (0.01) (1.55) 0.44 0.44 0.06 (0.01) (1.77)
----- ----- ----- ----- ----- ----- -----
Net asset value, end of period $7.51 $7.52 $9.07 $8.63 $8.19 $7.53 $7.54
===== ===== ===== ===== ===== ===== =====
Total return(1) 9.37% (9.61)% 14.18% 14.88% 10.44% 9.38% (14.09)%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $59,547 $61,026 52,184 $25,595 $12,331 $3,052 $1,669
Ratio to average net assets of:
Operating expenses 1.91%(4) 1.88% 1.86% 1.92% 1.97% 1.91%(4) 1.88%(2)
Net investment income 8.94% 8.46% 8.00% 8.47% 9.18% 8.85% 8.94%(2)
Portfolio turnover 73% 103% 167% 162% 147% 73% 103%
</TABLE>
- ------
(1) Maximum sales load is not reflected in the total return calculation.
(2) Annualized.
(3) Not annualized.
(4) For the year ended October 31, 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 have been 1.15% for
Class A and the ratio would not significantly differ for Class B and
Class C.
34 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin Money Market Fund Series
A Discussion the Fund's Portfolio Manager, Julie L. Sapia
Q: What is the Fund's investment objective?
A: The Fund is appropriate for conservative investors who want competitive money
market yields with minimal risk to principal. Investors should note that an
investment in this Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks to
preserve the value of an investor's investment at $1.00 per share, it is
possible to lose money by investing in the Fund.
Q: How did the Fund perform over the last 12 months?
A: For the 12 months ended October 31, 1999, Class A shares returned 4.47% and
Class B shares returned 3.69%. The return for Class C shares since they were
introduced October 12, 1999 was 0.19%. The 12-month return through October 31,
1999 for Salomon Brothers 90-day T-bill(1) was 4.66%. All performance figures
assume reinvestment of distributions and exclude the effect of sales charges.
Q: What factors affected how the Fund was positioned during the reporting
period?
A: The continuing economic crisis and unstable global markets prompted the
Federal Reserve to lower rates once again on November 17, 1998, resulting in a
total rate cut of 75 basis points in 1998.
Over the next several months, financial market conditions stabilized. Several of
the emerging-market economies appeared to show improved economic fundamentals.
The stabilization of global markets accompanied with persistent domestic
economic strength heightened concerns toward a greater risk of rising inflation.
On June 30, 1999 and again on August 24, the Federal Reserve raised rates,
resulting in a total rate increase of 50 basis points. At the August 24 meeting,
a neutral bias was adopted.
Q: What is your outlook for the next six months?
A: Strong domestic demand and recovering foreign economies will be the focus
going forward. We believe the market will continue to question the strength of
the economy and whether we will see any signs of rising inflation over the
months ahead. In the event we see ongoing signs of rising inflation, we believe
the Federal Reserve will raise rates once again. As always, we will continuously
monitor the portfolio and make adjustments based on current market conditions.
November 5, 1999
- ------------------
(1) Salomon Brothers 90-day T-bill is a commonly used measure of short-term
money market performance.
35
<PAGE>
- --------------------------------------------------------------------------------
Monthly Yield Comparison
- --------------------------------------------------------------------------------
[Edgar representation of data points used in printed graphics]
Monthly yields PSMMA vs IBC Money Fund Report PERIODS ENDING 10/31/99
Phoenix-Goodwin Money Market Fund Report
# S&P 500 Index
IBC
Fiscal Report
Month 1999 First Tier diff
----- ------ ---------- -----
11/30/1998 4.59% 4.60% -0.01%
12/31/1998 4.51 4.53 -0.02
01/31/1999 4.46 4.43 -0.03
02/28/1999 4.28 4.29 -0.01
03/31/1999 4.21 4.23 -0.02
04/30/1999 4.20 4.21 -0.01
05/31/1999 4.15 4.19 -0.04
06/30/1999 4.22 4.23 -0.01
07/31/1999 4.31 4.36 -0.05
08/31/1999 4.43 4.47 -0.04
09/30/1999 4.68 4.62 -0.06
10/31/1999 4.69 4.73 -0.04
-0.16%
(1) This chart illustrates the period from October 31, 1998 to October 31, 1999.
The results are not indicative of the rate of return which may be realized
from an investment made in the Money Market Fund today. The Money Market
Fund is neither insured nor guaranteed by the U.S. Government, and there can
be no assurance that the Fund will be able to maintain a stable Net Asset
Value at $1.00 per share.
(2) Average monthly yield of taxable Money Market Funds as reported by IBC's
Money Fund Report.
36
<PAGE>
Phoenix-Goodwin Money Market Fund Series
INVESTMENTS AT OCTOBER 31, 1999
<TABLE>
<CAPTION>
FACE
VALUE INTEREST RESET
(000) DESCRIPTION RATE DATE VALUE
- ----- ----------- -------- ------- -----------
<S> <C> <C> <C> <C>
FEDERAL AGENCY SECURITIES--VARIABLE(b)--20.0%
2,500 FFCB (final maturity 6/1/00) 5.216% 11/1/99 $ 2,500,000
398 SBA (final maturity 1/25/21) 5.75 11/1/99 397,308
2,440 SBA (final maturity 10/25/22) 5.75 1/1/00 2,437,146
3,277 SBA (final maturity 11/25/21) 5.875 1/1/00 3,274,833
2,912 SBA (final maturity 2/25/23) 5.75 1/1/00 2,912,377
2,711 SBA (final maturity 2/25/23) 5.75 1/1/00 2,711,372
2,965 SBA (final maturity 3/25/24) 5.625 11/1/99 2,962,240
380 SBA (final maturity 5/25/21) 5.75 1/1/00 379,491
3,474 SBA (final maturity 9/25/23) 5.625 1/1/00 3,474,056
2,500 SLMA (final maturity 1/20/00) 5.575 11/2/99 2,500,000
2,500 SLMA (final maturity 11/18/99) 5.425 11/2/99 2,500,000
3,000 SLMA (final maturity 3/7/01) 5.405 11/2/99 3,000,000
2,500 FHLB (final maturity 2/25/00) 5.845 11/3/99 2,500,000
10,500 FFCB (final maturity 7/24/00) 5.54 11/1/99 10,500,863
3,000 FHLB (final maturity 7/14/00) 5.705 7/14/00 2,991,728
- --------------------------------------------------------------------------------
Total Federal Agency Securities--Variable 45,041,414
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD
& POORS
RATING MATURITY
(Unaudited) DATE
----------- --------
<S> <C> <C> <C> <C> <C>
COMMERCIAL PAPER--62.6%
550 Emerson Electric Co. A-1+ 5.27 11/1/99 550,000
1,320 Koch Industries, Inc. A-1+ 5.34 11/1/99 1,320,000
5,000 Albertson's, Inc. A-1 5.30 11/2/99 4,999,264
1,132 Greenwich Funding Corp. A-1+ 5.36 11/2/99 1,131,831
2,970 Schering-Plough Corp. A-1+ 5.25 11/2/99 2,969,567
3,540 Gannett Co., Inc. A-1+ 5.30 11/5/99 3,537,935
5,770 Donnelly (R.R.) & Sons Co. A-1 5.28 11/8/99 5,764,076
2,700 Ford Motor Credit Co. A-1 5.25 11/8/99 2,697,244
3,500 Albertson's Inc. A-1 5.25 11/9/99 3,495,917
1,305 Private Export Funding Corp. A-1+ 5.28 11/9/99 1,303,469
1,000 Enterprise Funding Corp. A-1+ 5.39 11/10/99 998,652
5,000 AT&T Corp. A-1+ 5.28 11/15/99 4,989,733
2,500 Donnelley (R.R.) & Sons Co. A-1 5.28 11/16/99 2,494,500
4,715 Exxon Imperial Funding U.S., Inc. A-1+ 5.27 11/16/99 4,704,647
3,500 Bavaria Universal Funding Corp.(b) A-1 5.496 11/17/99 3,500,000
3,500 Household Finance Corp. A-1 5.28 11/17/99 3,491,787
3,000 Schering-Plough Corp. A-1+ 5.28 11/17/99 2,992,960
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STANDARD
FACE & POORS
VALUE RATING INTEREST MATURITY
(000) DESCRIPTION (Unaudited) RATE DATE VALUE
- ----- ----------- ----------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
1,100 Wisconsin Electric Power Co. A-1+ 5.28% 11/18/99 $1,097,257
2,820 Donnelley (R.R.) & Sons Co. A-1 5.28 11/19/99 2,812,555
3,500 General Electric Capital Corp. A-1+ 5.33 11/19/99 3,490,672
3,000 Schering-Plough Corp. A-1+ 5.27 11/19/99 2,992,095
4,200 Bavaria Universal Funding Corp. A-1+ 5.39 11/22/99 4,186,794
1,015 Exxon Imperial Funding U.S., Inc. A-1+ 5.30 11/22/99 1,011,862
2,805 Coca-Cola Co. A-1+ 5.25 11/23/99 2,796,001
2,500 Enterprise Funding Corp. A-1+ 5.38 11/23/99 2,491,781
1,000 Heinz (H.J.) Co. A-1 5.27 11/24/99 996,633
5,000 Vermont American Corp. A-1+ 5.28 11/24/99 4,983,133
3,500 Merrill Lynch & Co. A-1+ 5.28 11/29/99 3,485,627
2,500 Private Export Funding Corp. A-1+ 5.24 11/29/99 2,489,811
1,475 Merrill Lynch & Co. A-1+ 5.29 11/30/99 1,468,714
1,305 Greenwich Funding Corp. A-1+ 5.95 1/13/00 1,289,255
4,000 Greenwich Funding Corp. A-1+ 5.90 1/13/00 3,952,144
1,374 Receivables Capital Corp. A-1+ 5.82 1/14/00 1,357,562
3,500 Cargill, Inc. A-1 5.40 1/21/00 3,457,475
545 Preferred Receivables Funding Corp. A-1 5.58 1/25/00 537,820
2,500 Gannett Co., Inc. A-1+ 5.95 1/27/00 2,464,052
3,255 Marsh & McLennan Cos., Inc. A-1+ 5.53 1/28/00 3,211,000
3,000 General Electric Capital Corp. A-1+ 4.94 2/4/00 2,960,892
2,500 Greenwich Funding Corp. A-1+ 6.05 2/4/00 2,460,087
2,500 Preferred Receivables Funding Corp. A-1 5.88 2/4/00 2,461,208
2,470 Lexington Parker Capital Co. LLC A-1 5.82 2/11/00 2,429,270
2,599 Enterprise Funding Corp. A-1+ 5.88 2/15/00 2,554,003
2,500 Receivables Capital Corp. A-1+ 5.88 2/15/00 2,456,717
2,500 Preferred Receivables Funding Corp. A-1 6.03 2/17/00 2,454,775
2,500 Lexington Parker Capital Co. LLC A-1 5.85 2/18/00 2,455,719
2,500 AlliedSignal, Inc. A-1 5.92 2/22/00 2,453,544
3,060 American Home Products Corp. A-1 5.67 2/23/00 3,005,058
2,715 American Home Products Corp. A-1 5.72 2/24/00 2,665,391
2,500 Lexington Parker Capital Co. LLC A-1 6.00 2/25/00 2,451,667
1,500 Lexington Parker Capital Co. LLC A-1 6.05 2/25/00 1,470,758
2,500 Bavaria Universal Funding Corp. A-1+ 5.81 3/27/00 2,440,690
2,500 Beta Finance, Inc. A-1+ 5.77 3/27/00 2,441,098
2,500 Campbell Soup Co. A-1+ 4.85 4/13/00 2,444,764
- ---------------------------------------------------------------------------------------------------
Total Commercial Paper 141,119,466
- ---------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
37
<PAGE>
Phoenix-Goodwin Money Market Fund Series
<TABLE>
<CAPTION>
STANDARD
FACE & POORS
VALUE RATING INTEREST MATURITY
(000) DESCRIPTION (Unaudited) RATE DATE VALUE
- ----- ----------- ----------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
MEDIUM-TERM NOTES(e)--8.5%
2,500 Associates Corporation of
North America(c) AA- 5.288% 11/22/99 $2,499,339
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 2,539,017
2,500 Dupont (E.I.) de Nemours & Co. AA- 5.079 4/3/00 2,499,293
1,000 General Electric Capital Corp. AAA 5.76 4/24/00 999,074
3,500 General Electric Capital Corp. AAA 5.84 4/28/00 3,498,233
1,000 Beta Finance, Inc. AAA 5.265 5/15/00 994,815
1,000 Associates Corporation of
North America AA- 6.32 6/16/00 1,002,945
2,500 Pitney Bowes. Inc. AA 5.95 9/29/00 2,500,000
- ---------------------------------------------------------------------------------------------------
Total Medium-Term Notes 19,032,716
- ---------------------------------------------------------------------------------------------------
STANDARD
FACE & POORS
VALUE RATING INTEREST MATURITY
(000) DESCRIPTION (Unaudited) RATE DATE VALUE
- ----- ----------- ----------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
CERTIFICATES OF DEPOSIT--9.3%
3,500 Canadian Imperial Funding Corp. AA- 6.475% 1/24/00 $3,511,441
2,500 Deutsche Bank Financial, Inc. AA+ 4.97 2/2/00 2,499,171
2,500 Canadian Imperial Funding Corp. AA- 5.01 2/7/00 2,499,870
2,500 Deutsche Bank Financial, Inc. AA 5.10 2/17/00 2,499,786
2,500 Canadian Imperial Funding Corp. AA- 5.12 2/23/00 2,499,699
450 Canadian Imperial Funding Corp. AA- 5.27 3/3/00 449,451
3,000 Deutsche Bank Financial, Inc. AA 5.19 3/13/00 2,999,523
3,500 ABN AMRO Bank 5.38 4/20/00 3,499,036
Deutsche Bank Financial, Inc. AA 5.25 5/18/00 548,613
- ---------------------------------------------------------------------------------------------------
Total Certificates of Deposit 21,006,590
- ---------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.4%
(Identified cost $226,200,186) 226,200,186(a)
Cash and receivables, less liabilities--(0.4)% (935,898)
------------
NET ASSETS--100.0% $225,264,288
============
</TABLE>
<PAGE>
- ----------------
(a) Federal Income Tax Information: At October 31, 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 next reset date is 1/20/00.
(e) The interest rate shown is the coupon rate.
See Notes to Financial Statements
38
<PAGE>
Phoenix-Goodwin Money Market Fund Series
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
Assets
Investment securities at value
(Identified cost $226,200,186) $226,200,186
Cash 1,371,365
Receivables
Fund shares sold 2,155,006
Interest 1,248,737
Investment securities sold 46,451
Prepaid expenses 3,432
------------
Total assets 231,025,177
------------
Liabilities
Payables
Fund shares repurchased 5,312,477
Dividend distribution 177,214
Transfer agent fee 81,371
Investment advisory fee 81,121
Financial agent fee 20,801
Distribution fee 15,467
Trustees' fee 11,341
Accrued expenses 61,097
------------
Total liabilities 5,760,889
------------
Net Assets $225,264,288
============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $225,264,288
------------
Net Assets $225,264,288
============
Class A
Shares of beneficial interest outstanding, $1.00 par value,
unlimited authorization (Net Assets $205,065,842) 205,065,842
Net asset value per share $1.00
Class B
Shares of beneficial interest outstanding, $1.00 par value,
unlimited authorization (Net Assets $20,053,524) 20,053,524
Net asset value and offering price per share $1.00
Class C
Shares of beneficial interest outstanding, $1.00 par value,
unlimited authorization (Net Assets $144,922) 144,922
Net asset value and offering price per share $1.00
<PAGE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
Investment Income
Interest $11,772,182
-----------
Total investment income 11,772,182
-----------
Expenses
Investment advisory fee 910,014
Distribution fee, Class B 148,254
Distribution fee, Class C 72
Financial agent fee 206,950
Transfer agent fee 482,886
Printing 38,011
Custodian 36,041
Registration 33,940
Trustees 16,908
Audit 25,730
Miscellaneous 7,763
-----------
Total expenses 1,906,569
Custodian fees paid indirectly (3,119)
-----------
Net expenses 1,903,450
-----------
Net investment income $ 9,868,732
===========
See Notes to Financial Statements
39
<PAGE>
Phoenix-Goodwin Money Market Fund Series
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/99 10/31/98
--------------- --------------
<S> <C> <C>
From Operations
Net investment income (loss) $ 9,868,732 $ 9,527,556
-------------- --------------
From Distributions to Shareholders
Net investment income - Class A (9,145,952) (8,931,102)
Net investment income - Class B (722,494) (596,454)
Net investment income - Class C (286) --
-------------- --------------
Decrease in net assets from distributions to shareholders (9,868,732) (9,527,556)
-------------- --------------
From Share Transactions
Class A
Proceeds from sales of shares (1,899,144,846 and 1,101,598,303 shares, respectively) 1,899,144,846 1,101,598,303
Net asset value of shares issued from reinvestment of
distributions (8,113,952 and 7,964,222 shares, respectively) 8,113,952 7,964,222
Cost of shares repurchased (1,897,484,874 and 1,102,965,310 shares, respectively) (1,897,484,874) (1,102,965,310)
-------------- --------------
Total 9,773,924 6,597,215
-------------- --------------
Class B
Proceeds from sales of shares (74,245,737 and 46,229,441 shares, respectively) 74,245,737 46,229,441
Net asset value of shares issued from reinvestment of
distributions (599,130 and 482,065 shares, respectively) 599,130 482,065
Cost of shares repurchased (74,769,104 and 41,747,121 shares, respectively) (74,769,104) (41,747,121)
-------------- --------------
Total 75,763 4,964,385
-------------- --------------
Class C
Proceeds from sales of shares (144,728 and 0 shares, respectively) 144,728 --
Net asset value of shares issued from reinvestment of
distributions (194 and 0 shares, respectively) 194 --
Cost of shares repurchased (0 and 0 shares, respectively) -- --
-------------- --------------
Total 144,922 --
-------------- --------------
Increase (decrease) in net assets from share transactions 9,994,609 11,561,600
-------------- --------------
Net increase (decrease) in net assets $ 9,994,609 $ 11,561,600
Net Assets
Beginning of period 215,269,679 203,708,079
-------------- --------------
End of period $ 225,264,288 $ 215,269,679
============== ==============
</TABLE>
See Notes to Financial Statements
40
<PAGE>
Phoenix-Goodwin Money Market Fund Series
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------
Year Ended October 31
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1999 1998 1997 1996 1995
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations
Net investment income (loss) 0.044 0.049 0.048 0.047 0.053
----- ----- ----- ----- -----
Total from investment operations 0.044 0.049 0.048 0.047 0.053
----- ----- ----- ----- -----
Less distributions
Dividends from net investment income (0.044) (0.049) (0.048) (0.047) (0.053)
----- ----- ----- ----- -----
Change in net asset value -- -- -- -- --
----- ----- ----- ----- -----
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
Total return 4.47% 5.00% 4.76% 4.67% 5.32%
Ratios/supplemental data:
Net assets, end of period (thousands) $205,066 $195,292 $188.695 $192,859 $193,534
Ratio to average net assets of:
Operating expenses 0.77%(3) 0.73% 0.79% 0.84% 0.71%
Net investment income (loss) 4.41% 4.90% 4.76% 4.68% 5.31%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CLASS B CLASS C
----------------------------------------------------------- -----------
From
Year Ended October 31 Inception
----------------------------------------------------------- 10/12/99 to
1999 1998 1997 1996 1995 10/31/99
<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) 0.036 0.041 0.040 0.039 0.046 0.003
----- ----- ----- ----- ----- -----
Total from investment operations 0.036 0.041 0.040 0.039 0.046 0.003
----- ----- ----- ----- ----- -----
Less distributions
Dividends from net investment income (0.036) (0.041) (0.040) (0.039) (0.046) (0.003)
----- ----- ----- ----- ----- -----
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 3.69% 4.22% 4.02% 3.93% 4.63% 0.19%(2)
Ratios/supplemental data:
Net assets, end of period (thousands) $20,054 $19,978 $15,013 $10.223 $8,506 $145
Ratio to average net assets of:
Operating expenses 1.52%(3) 1.48% 1.55% 1.59% 1.44% 1.82%(1)
Net investment income (loss) 3.66% 4.15% 4.02% 3.92% 4.62% 3.95%(1)
</TABLE>
- -------------
(1) Annualized.
(2) Not annualized.
(3) For the year ended October 31, 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
41
<PAGE>
Phoenix-Oakhurst Balanced Fund Series
A Discussion with the Fund's Portfolio Management Team
Q: Why was the Fund's name changed?
A: In August, shareholders approved changing the name of the Fund from
Phoenix-Goodwin Balanced Fund to Phoenix-Oakhurst Balanced Fund to reflect the
name of the Fund's equity portfolio management team at Oakhurst,SM a division of
Phoenix Investment Counsel, Inc. There has been no change to investment
objective or management team, only a name change.
Q: What is the Fund's investment objective?
A: Phoenix-Oakhurst Balanced Fund is appropriate for investors seeking long-term
capital appreciation, current income, and conservation of capital from a
balanced portfolio of stocks, bonds, and cash equivalents. Investors should note
that the Fund may hold foreign bonds, and foreign investments pose additional
risk, such as currency, fluctuation, less public disclosure, and political and
economic uncertainty.
Q: Can you provide a brief overview of the equity markets over the last 12
months?
A: From October 31, 1998 to October 31, 1999, the market represented by the S&P
500 Index1 returned a total of 25.79%. This represented a rebound from the
market correction of August through October of 1998. As the U.S. domestic
economy showed continued strength with little inflationary pressure, the market
reversed the downward momentum induced by the Asian economic crisis and Russian
default of short-term debt.
Technology and basic material stocks led market performance during the past
year. Technology issues were propelled by strength in the semiconductor industry
as demand finally caught up with supply due to a dramatic cutback of capacity
spending during 1998. The build-out of Internet infrastructure accelerated the
growth rate of many vendors of communication chips, networking equipment, and
computer servers. With the increasing number of corporations and consumers
populating the World Wide Web, a new class of software tools also emerged. Web
authoring, web-content management, and enterprise procurement management are
just a few of the examples. All of these contributed to the great technology
rally of 1998-1999.
The surge in basic material stocks started earlier in 1999. As the Asian
economic crisis abated, there was great optimism that demand for basic
commodities would stabilize. The OPEC meeting in February rallied the price of
crude oil. The numerous unplanned outages at various chemical plants caused
commodity chemical prices to increase. The protectionism measures contemplated
by Congress curbed steel imports. The strength in the domestic housing market
made forest products scarce. These factors led to increasing earnings forecasts
for many paper, chemical, steel and oil companies. From January through May,
basic material stocks dramatically outperformed the S&P 500 Index.
On the negative side, consumer non-cyclical and health-care stocks
underperformed the market all year. Consumer stocks were hampered by earnings
disappointments from market leaders Coke and Gillette. Many food producers also
failed to meet growth expectations. The drug stocks were slowed by lingering
talk of a Medicare-sponsored prescription benefit plan that may lower the
overall cost of medicine. In addition, major pharmaceutical companies must also
deal with the soon-to-come patent expiration of many blockbuster drugs.
<PAGE>
Q: Can you provide us with a brief overview of the bond market during this
period?
A: At the time of this writing, the bond market is definitely not a repeat of
last year. We saw Russia default, hedge funds unwind around the world, a global
liquidity crisis erupt, and a Fed response of lowering interest rates. Now we
are experiencing a record supply of issues in non-Treasury sectors, Y2K fears, a
reduced role for Wall Street as a market liquidity provider, and a Fed bias
toward higher rates. On October 5 of last year, the two-year Treasury yielded
4.02%. On November 8 of this year, it yielded 5.72%. The difference for the
30-year Treasury is even more dramatic. Last October 5, it yielded 4.71%
compared with 6.06% on November 8, 1999. The "flight to quality" environment has
reversed itself, and for most of this reporting period, higher-yielding sectors
were the best performing.
(1) The S&P 500 Index is an unmanaged, commonly used measure of stock market
total return performance. The Index is not available for direct investment.
42
<PAGE>
Phoenix-Oakhurst Balanced Fund Series (continued)
Q: How did the Fund perform in this environment?
A: The Phoenix-Oakhurst Balanced Fund Class A shares returned 16.73% and Class B
shares returned 15.84% for the fiscal year ended October 31, 1999 compared with
a return of 15.25% for a benchmark index.(2) The equity portion had a return of
29.6% for the one year, ahead of the 25.79% return of the S&P 500 Index. The
bond portion of the portfolio returned 1.73% compared with a return of 0.53% for
the Lehman Aggregate Bond Index for the one-year period. The average return for
a universe of 430 balanced funds was 11.32%, according to Lipper, Inc. All
performance figures assume reinvestment of distributions and exclude the effects
of sales charges.
The equity portion of the Phoenix-Oakhurst Balanced Fund held a great deal of
media stocks. Issues such as Clear Channel Communications, CBS, AMFM Inc.,
Liberty Media and Hughes Electronics all had significantly above-market returns
and contributed greatly to portfolio performance. In the new age of digital
media, these companies either control great distribution or possess great
content and have seen their value rise greatly. The Fund also was helped by
holdings in Microsoft, IBM, America Online, Cisco, Sun Microsystems, and
Tellabs. These technology companies are deriving great benefit from the
increasing popularity of the Internet.
The Fund was also favorably exposed to several leading specialty retail
stocks, including Home Depot, Wal-Mart Stores and Tandy. Home Depot and Wal-Mart
have increased their dominance in the retail sector, exerting greater influence
on their suppliers and reaping significant benefit from the record high consumer
confidence. Tandy, through the ownership of Radio Shack, served as an outlet for
wireless subscription plans, earning great profit in the process. Selected
financial service stocks also performed well. The portfolio held large positions
in Morgan Stanley, Citigroup, and American International Group, which all
appreciated greatly from their lows reached in August of 1998.
The bond portion of the Fund also performed well during this period, with
higher-yielding sectors being among the best performers in the market. We have
maintained our strategy of investing in sectors with best relative values, and
while this hurt performance last year, this has benefited results this year.
Some of the best contributors to performance were our holdings in the cable and
telecommunications industries.
Q: Have any changes to the Fund's asset allocation been made?
A: No. As part of our investment philosophy, we do not believe in trying to time
the market. Our mandate is to remain approximately 60% invested in equities and
40% in bonds. On the fixed-income side, we maintain a duration equal to our
benchmark index.
Q: What is your outlook?
<PAGE>
A: The outlook for corporate profits has brightened over last year. During
October of 1998, Asia's economy was still suffering from overcapacity and slow
growth. It is now poised for recovery. Even the Japanese economy shows signs of
sustainable positive growth after many years of stagnant condition. The economic
situation in Europe is also quite robust. We believe this background of economic
prosperity can fuel strong earnings growth for corporate America.
The inflation front also appears to be quite benign. Despite a tight labor
market, there is currently neither signs of wage inflation nor outsized growth
of the Consumer Price Index. With a strong labor market, rising energy and
commodity prices, there will always be fear of an overheating economy. With such
worry in mind, the Federal Reserve has already raised interest rates twice since
June to forestall any inflationary pressure. As long as inflation remains tame
and corporate profit continue to be strong, the equity market should stay on
solid ground.
We also believe the outlook for fixed-income markets is very favorable for the
long term. Real yields remain attractive by historical standards, and all spread
sectors now offer excellent value relative to long-term average. Our current
focus is on Europe to take advantage of inefficiencies we are finding there and
using currency hedges to pick up incremental yield.
November 15, 1999
- -----------------
(2) The benchmark index is made of 60% of the S&P 500 Index and 40% of the
Lehman Brothers Aggregate Index. The Lehman Brothers Aggregate Index is an
unmanaged, commonly used measure of broad bond market total return
performance. The indices are not available for direct investment.
43
<PAGE>
Phoenix-Oakhurst Balanced Fund Series
<TABLE>
<CAPTION>
Average Annual Total Returns(1) PERIODS ENDING 10/31/99
INCEPTION INCEPTION
1 YEAR 5 YEAR 10 YEAR TO 10/31/99 DATE
------ ------ ------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Class A Shares at NAV(2) 16.73% 14.15% 11.57% -- --
Class A Shares at POP(3) 11.18 13.04 11.03 -- --
Class B Shares at NAV(2) 15.84 13.31 -- 12.58% 7/15/94
Class B Shares with CDSC(4) 11.84 13.31 -- 12.58 7/15/94
New Balanced Benchmark(7) 15.25 18.79 13.97 18.19 Note 5
Old Balanced Benchmark(8) 14.44 17.58 13.19 17.05 Note 5
S&P 500 Index(9) 25.79 26.10 17.85 25.61 7/15/94
</TABLE>
(1) Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
(2) "NAV" (Net Asset Value) total returns do not include the effect of any sales
charge.
(3) "POP" (Public Offering Price) total returns include the effect of the
maximum front-end 4.75% sales charge.
(4) CDSC (contingent deferred sales charge) is applied to redemptions of certain
classes of shares that do not have a sales charge applied at the time of
purchase. CDSC charges for B shares decline from 5% to 0% over a five year
period.
(5) Index information from 7/31/94 to 10/31/99.
(6) This chart illustrates POP returns on Class A shares for ten years. Returns
on Class B shares will vary due to differing sales charges.
(7) The Balanced Benchmark is a composited index made up of 60% of the S&P 500
Index return and 40% of the Lehman Brothers Aggregate Bond Index return. The
index's performance does not reflect sales charges.
(8) The Balanced Benchmark is a composited index made up of 55% of the S&P 500
Index return, 35% of the Lehman Brothers Aggregate Bond Index return and 10%
of the 90-day Treasury bill return. The index's performance does not reflect
sales charges.
(9) The S&P 500 Index is an unmanaged, commonly used measure of stock market
total return performance. The index's performance does not reflect sales
charges.
All returns represent past performance which may not be indicative of future
performance. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
<PAGE>
Growth of $10,000 PERIODS ENDING 10/31/99
[Edgar representation of data points used in printed graphics]
<TABLE>
<CAPTION>
Phoenix-Oakhurst Balanced A 60% S&P 40% Lehman S&P 500 Index(9) 55% S&P 35% Lehman
Aggregate
<S> <C> <C> <C> <C>
10/31/1989 $ 9,525 $10,000 $10,000 $10,000
10/31/1990 $ 9,974 $10,190 $ 9,248 $ 9,890
10/31/1991 $12,592 $12,872 $12,346 $12,299
10/30/1992 $13,822 $14,167 $13,576 $13,463
10/29/1993 $15,193 $16,113 $15,598 $15,168
10/31/1994 $14,695 $16,254 $16,212 $15,361
10/31/1995 $16,975 $19,841 $20,494 $18,503
10/31/1996 $19,018 $23,138 $25,463 $21,397
10/31/1997 $22,449 $28,395 $33,682 $25,924
10/30/1998 $24,398 $33,354 $41,097 $30,170
10/29/1999 $28,480 $38,442 $51,694 $34,528
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
10/31/89 in Class A shares and reflects the maximum sales charge of 4.75% on the
initial investment. Performance assumes dividends and capital gains are
reinvested. The performance of other share classes will be greater or less than
that shown based on differences in inception dates, fees and sales charges.
Sector Weightings 10/31/99
As a percentage of equity holdings
[PIE CHART GRAPHIC OMITTED]
o Technology 26%
o Financials 17%
o Consumer Staples 14%
o Health-Care 10%
o Consumer Cyclicals 9%
o Communication Services 9%
o Capital Goods 7%
o Other 8%
44
<PAGE>
Phoenix-Oakhurst Balanced Fund Series
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Ten Largest Equity Holdings at October 31, 1999 (as a percentage of total net assets)
<S> <C> <C> <C>
1. Microsoft Corp. 3.2% 6. Wells Fargo Co. 2.1%
World's leading computer software company Nationwide diversified financial services company
2. Intel Corp. 2.6% 7. AT&T Corp.-Liberty Media Group Class A 2.0%
Designs, develops and markets microcomputer components Internet, television and digital technology provider
3. Cisco Systems, Inc. 2.5% 8. Citigroup, Inc. 1.9%
Develops multiprotocol Internet-working systems Diversified financial services holding company
4. General Electric Co. 2.2% 9. AT&T Corp. 1.9%
Diversified manufacturing and financial services provider Provides voice, data and video telecommunications services
5. International Business Machines Corp. 2.1% 10. BP Amoco PLC Sponsored ADR 1.9%
Provides advanced information technologies Holding company of petroleum and petrochemical groups
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
INVESTMENTS AT OCTOBER 31, 1999
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ------- -----------
U.S. GOVERNMENT SECURITIES--4.4%
U.S. Treasury Bonds--1.1%
U.S. Treasury Bonds 5.25%, 11/15/28 ...... AAA $ 9,000 $ 7,731,103
U.S. Treasury Bonds 5.25%, 2/15/29 ....... AAA 12,100 10,474,408
-----------
18,205,511
-----------
U.S. Treasury Notes--3.3%
U.S. Treasury Notes 4.50%, 9/30/00 ....... AAA 42,150 41,741,158
U.S. Treasury Notes 5.25%, 8/15/03 ....... AAA 1,000 975,485
U.S. Treasury Notes 4.25%, 11/15/03 ...... AAA 8,400 7,885,690
U.S. Treasury Notes 6%, 8/15/04 .......... AAA 200 200,429
U.S. Treasury Notes 4.75%, 11/15/08 ...... AAA 1,550 1,401,230
U.S. Treasury Notes 6%, 8/15/09 .......... AAA 220 219,676
-----------
52,423,668
-----------
- --------------------------------------------------------------------------------
Total U.S. Government Securities
(Identified cost $73,125,595) 70,629,179
- --------------------------------------------------------------------------------
<PAGE>
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ------- -----------
AGENCY MORTGAGE-BACKED SECURITIES--3.6%
GNMA 6.50%, '23-'28 AAA $60,344 $58,088,609
- --------------------------------------------------------------------------------
Total Agency Mortgage-Backed Securities
(Identified cost $58,916,977) 58,088,609
- --------------------------------------------------------------------------------
AGENCY NON MORTGAGE-BACKED
SECURITIES--1.1%
Fannie Mae 6.625%, 9/15/09 .................. Aaa(d) 18,340 18,248,300
- --------------------------------------------------------------------------------
Total Agency Non Mortgage-Backed Securities
(Identified cost $18,317,692) 18,248,300
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--6.8%
California--3.0%
Alameda Corridor Transportation Authority
Revenue Taxable Series C 6.50%,
10/1/19 ..................................... AAA 1,100 981,750
See Notes to Financial Statements 45
<PAGE>
Phoenix-Oakhurst Balanced Fund Series
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
---------- ------- -----------
California--continued
Alameda Corridor Transportation Authority
Revenue Taxable Series C 6.60%,
10/1/29 ...................................... AAA $ 2,750 $ 2,430,312
Fresno County Pension Obligation Revenue
Taxable 6.21%, 8/15/06 ....................... AAA 3,820 3,657,650
Kern County Pension Obligation
Revenue Taxable 7.26%, 8/15/14 ............... AAA 6,830 6,701,937
Long Beach Pension Obligation
Taxable 6.87%, 9/1/06 ........................ AAA 2,865 2,843,512
Orange County Pension Obligation Revenue
Taxable Series A 7.62%, 9/1/08 ............... AAA 9,085 9,402,975
Pasadena Pension Funding Revenue
Taxable Series A 6.95%, 5/15/07 .............. AAA 1,915 1,905,425
Pasadena Pension Funding Revenue
Taxable Series A 7%, 5/15/08 ................. AAA 3,435 3,417,825
Pasadena Pension Funding Revenue
Taxable Series A 7.05%, 5/15/09 .............. AAA 2,500 2,484,375
Pasadena Pension Funding Revenue
Taxable Series A 7.15%, 5/15/11 .............. AAA 565 557,937
San Bernardino County Pension Obligation
Revenue Taxable 6.87%, 8/1/08 ................ AAA 1,530 1,508,963
San Bernardino County Pension Obligation
Revenue Taxable 6.94%, 8/1/09 ................ AAA 4,170 4,112,663
Sonoma County Pension Obligation
Revenue Taxable 6.625%, 6/1/13 ............... AAA 3,665 3,426,775
Ventura County Pension Obligation
Taxable 6.58%, 11/1/06 ....................... AAA 3,560 3,479,900
-----------
46,911,999
-----------
Colorado--0.1%
Denver City and County School District
01 Pension Taxable 6.76%, 12/15/07 ........... AAA 2,000 1,965,000
Florida--1.0%
Miami Beach Special Obligation
Revenue Taxable 8.60%, 9/1/21 ................ AAA 11,675 12,477,656
Tampa Solid Waste System Revenue
Taxable Series A 6.23%, 10/1/05 .............. AAA 1,970 1,908,438
University of Miami Exchangeable Revenue
Taxable Series A 7.65%, 4/1/20 ............... AAA 2,120 2,130,600
-----------
16,516,694
-----------
<PAGE>
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
---------- ------- -----------
Massachusetts--0.2%
Massachusetts Port Authority Revenue
Taxable Series C 6.05%, 7/1/02 ............. AA- $ 3,340 $ 3,289,900
New York--0.8%
New York City Municipal Water Finance
Authority Water & Sewer System Revenue
Series B 5%, 6/15/29 ....................... AAA 4,800 4,074,000
New York State Taxable Series C 6.35%,
3/1/07 ..................................... AAA 9,290 8,930,013
-----------
13,004,013
-----------
Pennsylvania--1.0%
Philadelphia Authority For Industrial
Development Pension Funding
Retirement Systems Revenue Taxable
Series A 5.79%, 4/15/09 .................... AAA 8,500 7,724,375
Pittsburgh Pension Obligation Taxable
Series C 6.50%, 3/1/17 ..................... AAA 9,245 8,355,169
-----------
16,079,544
-----------
Texas--0.7%
Dallas-Fort Worth International Airport
Revenue Taxable 6.50%, 11/1/09 ............. AAA 1,900 1,814,500
Dallas-Fort Worth International Airport
Revenue Taxable 6.60%, 11/1/12 ............. AAA 5,750 5,390,625
Texas State Veterans Limited Taxable
Series B 6.10%, 12/1/03 .................... AA 3,995 3,900,119
-----------
11,105,244
-----------
Total Municipal Bonds
(Identified cost $112,548,961) 108,872,394
ASSET-BACKED SECURITIES--4.1%
AESOP Funding II LLC 97-1A, A2 144A
6.40%, 10/20/03(c) ......................... AAA 9,250 9,181,060
Associates Manufactured Housing Pass
Through 97-2, A6 7.075%, 3/15/28 ........... AAA 3,000 2,900,625
Capita Equipment Receivables Trust
97-1, B 6.45%, 8/15/02 ..................... A+ 5,020 4,977,481
Case Equipment Loan Trust 98-A,
A4 5.83%, 2/15/05 .......................... AAA 11,600 11,465,440
-----------
46 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Balanced Fund Series
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
---------- ------- -----------
Discover Card Master Trust I 98-7,
A 5.60%, 5/16/06 ............................. AAA $8,300 $ 7,972,150
Ford Credit Auto Owner Trust 99-B,
A4 5.80%, 6/15/02 ............................ AAA 3,000 2,981,367
Green Tree Financial Corp. 96-2,
M1 7.60%, 4/15/27 ............................ AA- 9,250 8,949,375
Honda Auto Lease Trust 99-A, A5
6.65%, 7/15/05 ............................... AAA 5,500 5,484,531
Premier Auto Trust 98-3, B 6.14%,
9/8/04 ....................................... A+ 4,000 3,974,002
Triangle Funding Ltd. 98-2A, 3 144A
8.03%, 10/15/04(c)(e) ........................ BBB 8,000 7,950,000
- --------------------------------------------------------------------------------
Total Asset-Backed Securities
(Identified cost $66,647,422) 65,836,031
- --------------------------------------------------------------------------------
CORPORATE BONDS--5.0%
Auto Parts & Equipment--0.3%
Federal-Mogul Corp. 7.50%, 1/15/09 ........... BB+ 5,365 4,781,556
Banks (Major Regional)--0.3%
U.S. Bank of Minnesota N.A. 6.30%,
7/15/08 ...................................... A 3,000 2,820,000
Wachovia Corp. 5.625%, 12/15/08 .............. A+ 3,000 2,688,750
-----------
5,508,750
-----------
Broadcasting (Television, Radio & Cable)--0.3%
CSC Holdings, Inc. 7.25%, 7/15/08 ............ BB+ 4,665 4,443,412
Communications Equipment--0.1%
Williams Communications Group, Inc.
10.875%, 10/1/09 ............................. BB- 2,350 2,414,625
Computers (Software & Services)--0.2%
Computer Associates International, Inc.
Series B 6.375%, 4/15/05 ..................... BBB+ 3,590 3,347,675
Entertainment--0.5%
Capitol Records, Inc. 144A 8.375%
8/15/09(c) ................................... BBB+ 8,600 8,471,000
<PAGE>
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
---------- ------- -----------
Gaming, Lottery & Pari-mutuel Companies--0.5%
Harrahs Operating Co., Inc. 7.875%,
12/15/05 ...................................... BB+ $4,335 $4,150,762
Station Casinos, Inc. 10.125%, 3/15/06 ........ B+ 3,000 3,082,500
----------
7,233,262
----------
Health Care (Hospital Management)--0.3%
Tenet Healthcare Corp. 8%, 1/15/05 ............ BB+ 4,865 4,579,181
Health Care (Medical Products & Supplies)--0.2%
Boston Scientific Corp. 6.625%,
3/15/05 ....................................... BBB 3,250 3,055,000
Insurance (Multi-Line)--0.1%
Willis Corroon Corp. 9%, 2/1/09 ............... B+ 1,480 1,309,800
Leisure Time (Products)--0.2%
Bally Total Fitness Holding Corp.
Series D 9.875%, 10/15/07 ..................... B- 2,900 2,747,750
Manufacturing (Diversified)--0.2%
American Standard, Inc. 7.375%,
4/15/05 ....................................... BB- 3,000 2,797,500
Paper & Forest Products--0.2%
Buckeye Technologies, Inc. 9.25%,
9/15/08 ....................................... BB- 3,765 3,830,888
Personal Care--0.0%
Revlon Consumer Products Corp. 9%,
11/1/06 ....................................... B 740 584,600
Publishing--0.1%
Charter Communications Holdings LLC
8.625%, 4/1/09 ................................ B+ 2,000 1,895,000
Retail (Food Chains)--0.1%
Meyer (Fred), Inc. 7.45%, 3/1/08 .............. BBB- 1,290 1,273,875
Services (Commercial & Consumer)--0.3%
Budget Group, Inc. Senior Notes 9.125%,
4/1/06 ........................................ BB- 2,750 2,420,000
United Rentals, Inc. Series B 9.50%,
6/1/08 ........................................ BB- 935 867,213
United Rentals, Inc. Series B 8.80%,
8/15/08 ....................................... BB- 1,570 1,413,000
----------
4,700,213
----------
See Notes to Financial Statements 47
<PAGE>
Phoenix-Oakhurst Balanced Fund Series
<TABLE>
<CAPTION>
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- -------- ------------
<S> <C> <C> <C>
Telecommunications (Long Distance)--0.4%
Nextlink Communications, Inc. 10.75%,
11/15/08 ......................................... B $ 2,000 $ 2,025,000
Qwest Communications International, Inc.
Series B 7.50%, 11/1/08 .......................... BB+ 4,300 4,283,875
-----------
6,308,875
-----------
Telephone--0.2%
Century Telephone Enterprises, Inc.
Series F 6.30%, 1/15/08 .......................... BBB+ 3,000 2,771,250
Textiles (Home Furnishings)--0.3%
Westpoint Stevens, Inc. 7.875%,
6/15/05 .......................................... BB 4,365 4,103,100
Truckers--0.1%
Teekay Shipping Corp. 8.32%, 2/1/08 .............. BB+ 2,640 2,356,200
Trucks & Parts--0.1%
Cummins Engine Co., Inc. 6.45%,
3/1/05 ........................................... BBB+ 2,060 1,949,275
- ----------------------------------------------------------------------------------------------------
Total Corporate Bonds
(Identified cost $84,482,776) .................... 80,462,787
- ----------------------------------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED SECURITIES--7.7%
CS First Boston Mortgage Securities Corp.
97-C2, A3 6.55%, 11/17/07 ........................ AAA 10,750 10,276,328
CS First Boston Mortgage Securities Corp.
97-C2, B 6.72%, 11/17/07(d) ...................... Aa 9,000 8,505,000
CS First Boston Mortgage Securities Corp.
98-C1, A1B 6.48%, 5/17/08 ........................ AAA 10,000 9,440,625
DLJ Commercial Mortgage Corp. 98-CF2,
A1B 6.24%, 11/12/31(d) ........................... Aaa 4,000 3,727,500
DLJ Mortgage Acceptance Corp. 96-CF1,
A1B 144A 7.58%, 2/12/06(c) ....................... AAA 6,550 6,603,219
First Union - Lehman Brothers - Bank of
America 98-C2, A2 6.56%, 11/18/08 ................ AAA 2,000 1,909,713
First Union - Lehman Brothers Commercial
Mortgage 97-C1, B 7.43%, 4/18/07(d) .............. Aa 11,807 11,756,670
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- -------- ------------
<S> <C> <C> <C>
G.E. Capital Mortgage Services, Inc. 96-8,
1M 7.25%, 5/25/26 ................................ AA $ 5,249 $ 5,091,302
GMAC Commercial Mortgage Securities,
Inc. 97-C2, B 6.703%, 12/15/07(d) ................ Aa 5,000 4,643,250
LB Commercial Conduit Mortgage Trust
98-C4, A1B 6.21%, 10/15/08 ....................... AAA 10,060 9,328,598
Lehman Large Loan 97-LLI, B 6.95%,
3/12/07 .......................................... AA 10,825 10,519,776
Nationslink Funding Corp. 96-1, B 7.69%,
12/20/05 ......................................... AA 6,157 6,207,247
Nationslink Funding Corp. 99-1,
A2 6.316%, 11/20/08 .............................. AAA 2,050 1,925,719
Prudential Home Mortgage
Securities 93-L, 2B3 144A 6.641%,
12/25/23(c)(d) ................................... A 5,000 4,856,250
Residential Funding Mortgage
Securities I 96-S8, A4 6.75%, 3/25/11 ............ AAA 1,891 1,849,892
Residential Funding Mortgage
Securities I 96-S1, A11 7.10%, 1/25/26 ........... AAA 6,600 6,406,125
Residential Funding Mortgage
Securities I 96-S4, M1 7.25%, 2/25/26 ............ AA 5,764 5,570,372
Securitized Asset Sales, Inc. 93-J, 2B
6.808%, 11/28/23(d) .............................. AA 9,563 9,185,389
Structured Asset Securities Corp. 93-C1,
B 6.60%, 10/25/24 ................................ A+ 4,550 4,506,293
- ----------------------------------------------------------------------------------------------------
Total Non-Agency Mortgage-Backed Securities
(Identified cost $126,684,296) ................... 122,309,268
- ----------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--2.4%
Colombia--0.5%
Republic of Colombia 9.75%, 4/23/09 .............. BB+ 9,140 8,351,675
Croatia--0.6%
Croatia Series A 6.456%, 7/31/10(e) .............. BBB- 5,805 4,702,050
Croatia Series B 6.456%, 7/31/06(e) .............. BBB- 4,522 3,883,206
-----------
8,585,256
-----------
</TABLE>
48 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Balanced Fund Series
<TABLE>
<CAPTION>
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- -------- ------------
<S> <C> <C> <C>
El Salvador--0.4%
Republic of El Salvador 144A 9.50%,
8/15/06(c) ....................................... BB+ $ 7,000 $ 6,965,000
Poland--0.3%
Poland Bearer PDI 5%, 10/27/14(e) ................ BBB 5,080 4,508,500
South Korea--0.2%
Republic of Korea 8.875%, 4/15/08 ................ BBB- 3,500 3,641,313
Uruguay--0.4%
Republic of Uruguay 7.25%, 5/4/09 ................ BBB- 6,900 6,472,200
- ----------------------------------------------------------------------------------------------------
Total Foreign Government Securities
(Identified cost $38,683,315) .................... 38,523,944
- ----------------------------------------------------------------------------------------------------
FOREIGN CORPORATE BONDS--2.6%
Argentina--0.3%
Compania de Radiocomunicaciones
Moviles SA 144A 9.25%, 5/8/08(c) ................. BBB- 3,400 2,958,000
Telecom Argentina - France Telecom
SA EMTN 144A 9.75%, 7/12/01(c) ................... BBB- 2,250 2,250,000
-----------
5,208,000
-----------
Bahamas--0.2%
Sun International Hotels Ltd. 8.625%,
12/15/07 ......................................... B+ 3,000 2,767,500
Canada--0.2%
Imax Corp. 7.875%, 12/1/05 ....................... BB- 2,935 2,714,875
Chile--0.4%
Compania Sud Americana de Vapores
144A 7.375%, 12/8/03(c) .......................... BBB 4,500 4,275,000
Petropower I Funding Trust 144A 7.36%,
2/15/14(c) ....................................... BBB 2,487 2,139,231
-----------
6,414,231
-----------
Japan--0.8%
IBJ Preferred Capital Co. LLC 144A 8.79%,
12/29/49(c)(d)(e) ................................ Ba 6,800 6,437,343
SB Treasury Co. LLC Series A 144A 9.40%,
12/29/49(c)(e) ................................... BB+ 6,800 6,837,488
-----------
13,274,831
-----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- -------- ------------
<S> <C> <C> <C>
Luxembourg--0.4%
Tyco International Group
SA 6.375%, 6/15/05 ............................... A- $ 6,700 $ 6,348,250
Poland--0.2%
TPSA Finance BV 144A 7.75%,
12/10/08(c) ...................................... BBB 3,095 2,920,906
United Kingdom--0.1%
Orange PLC 144A 8.75%, 6/1/06(c) ................. BB- 1,000 1,030,000
- ----------------------------------------------------------------------------------------------------
Total Foreign Corporate Bonds
(Identified cost $42,542,445) .................... 40,678,593
- ----------------------------------------------------------------------------------------------------
SHARES
--------
PREFERRED STOCKS--0.5%
REITS--0.5%
Home Ownership Funding 2, Step-down
Pfd. 144A 13.338%(c)(e) .......................... 10,000 8,442,520
- ----------------------------------------------------------------------------------------------------
Total Preferred Stocks
(Identified cost $8,487,365) ..................... 8,442,520
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS--55.6%
Banks (Major Regional)--2.6%
Mellon Financial Corp. ........................... 216,600 8,000,662
Wells Fargo Co. .................................. 702,400 33,627,400
-----------
41,628,062
-----------
Banks (Money Center)--1.6%
Bank of America Corp. ............................ 392,340 25,256,887
Beverages (Non-Alcoholic)--1.3%
PepsiCo, Inc. .................................... 590,500 20,482,969
Broadcasting (Television, Radio & Cable)--3.7%
AMFM, Inc.(b) .................................... 130,500 9,135,000
AT&T Corp.-Liberty Media Group
Class A(b) ....................................... 787,800 31,265,812
CBS Corp.(b) ..................................... 215,700 10,528,856
Clear Channel Communications, Inc.(b) ............ 99,800 8,021,425
-----------
58,951,093
-----------
</TABLE>
See Notes to Financial Statements 49
<PAGE>
Phoenix-Oakhurst Balanced Fund Series
SHARES VALUE
------ -----
Communications Equipment--1.8%
General Motors Corp. Class H(b) .................. 99,000 $ 7,208,437
Motorola, Inc. ................................... 60,000 5,846,250
Tellabs, Inc.(b) ................................. 239,000 15,116,750
------------
28,171,437
------------
Computers (Hardware)--4.4%
Dell Computer Corp.(b) ........................... 377,700 15,155,212
International Business Machines Corp. ............ 344,800 33,919,700
Sun Microsystems, Inc.(b) ........................ 195,700 20,707,506
------------
69,782,418
------------
Computers (Networking)--2.5%
Cisco Systems, Inc.(b) ........................... 547,674 40,527,876
Computers (Software & Services)--4.5%
America Online, Inc.(b) .......................... 122,100 15,834,844
Microsoft Corp.(b) ............................... 547,000 50,631,687
Yahoo!, Inc.(b) .................................. 30,400 5,443,500
------------
71,910,031
------------
Consumer Finance--0.4%
Capital One Financial Corp ....................... 121,500 6,439,500
Distributors (Food & Health)--0.6%
Cardinal Health, Inc. ............................ 210,900 9,095,062
Electric Companies--0.3%
Duke Energy Corp. ................................ 84,600 4,779,900
Electrical Equipment--2.2%
General Electric Co. ............................. 262,400 35,571,600
Electronics (Instrumentation)--0.1%
Waters Corp.(b) .................................. 40,000 2,125,000
Electronics (Semiconductors)--2.6%
Intel Corp. ...................................... 530,800 41,103,825
Financial (Diversified)--4.3%
Citigroup, Inc. .................................. 566,250 30,648,281
Freddie Mac ...................................... 172,000 9,298,750
Morgan Stanley Dean Witter & Co .................. 255,900 28,228,969
------------
68,176,000
------------
Health Care (Diversified)--1.6%
Bristol-Myers Squibb Co. ......................... 333,800 25,640,012
Health Care (Drugs-Major Pharmaceuticals)--2.4%
Pfizer, Inc. ..................................... 521,700 20,607,150
Schering-Plough Corp. ............................ 348,200 17,235,900
------------
37,843,050
------------
<PAGE>
SHARES VALUE
------ -----
Health Care (Medical Products & Supplies)--1.2%
Bard (C.R.), Inc. ................................ 100,000 $ 5,393,750
Baxter International, Inc. ....................... 210,500 13,656,188
------------
19,049,938
------------
Household Products (Non-Durable)--1.8%
Fort James Corp. ................................. 50,000 1,315,625
Kimberly-Clark Corp. ............................. 55,000 3,471,875
Procter & Gamble Co. (The) ....................... 225,700 23,670,288
------------
28,457,788
------------
Insurance (Multi-Line)--1.4%
American International Group, Inc. ............... 220,500 22,697,719
Lodging-Hotels--0.6%
Carnival Corp. ................................... 233,100 10,372,950
Manufacturing (Diversified)--1.8%
Tyco International Ltd. .......................... 702,600 28,060,088
Oil & Gas (Drilling & Equipment)--0.8%
Halliburton Co. .................................. 134,400 5,065,200
Schlumberger Ltd. ................................ 87,300 5,287,106
Transocean Offshore, Inc. ........................ 100,000 2,718,750
------------
13,071,056
------------
Oil & Gas (Exploration & Production)--0.3%
Anadarko Petroleum Corp. ......................... 153,800 4,738,963
Oil (Domestic Integrated)--0.7%
Conoco, Inc. Class A ............................. 419,700 11,515,519
Paper & Forest Products--0.2%
Georgia-Pacific Group ............................ 19,000 754,063
International Paper Co. .......................... 48,000 2,526,000
------------
3,280,063
------------
Personal Care--0.5%
Gillette Co. (The) ............................... 236,500 8,558,344
Retail (Building Supplies)--1.4%
Home Depot, Inc. (The) ........................... 301,400 22,755,700
Retail (Computers & Electronics)--0.8%
Tandy Corp. ...................................... 201,800 12,700,788
Retail (Food Chains)--0.5%
Kroger Co. (The)(b) .............................. 172,580 3,591,821
Safeway, Inc.(b) ................................. 131,700 4,650,656
------------
8,242,477
------------
Retail (General Merchandise)--1.8%
Wal-Mart Stores, Inc. ............................ 518,000 29,590,750
50 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Balanced Fund Series
SHARES VALUE
------ -----
Retail (Home Shopping)--0.1%
Lands' End, Inc.(b) .............................. 21,000 $ 1,615,688
Retail (Specialty)--0.6%
Staples, Inc.(b) ................................. 429,375 9,526,758
Telecommunications (Long Distance)--3.3%
AT&T Corp. ....................................... 648,034 30,295,590
MCI WorldCom, Inc.(b) ............................ 253,399 21,744,839
-----------
52,040,429
-----------
Telephone--0.8%
SBC Communications, Inc. ......................... 262,300 13,360,906
Textiles (Apparel)--0.1%
Tommy Hilfiger Corp.(b) .......................... 54,000 1,525,500
- --------------------------------------------------------------------------------
Total Common Stocks
(Identified cost $603,270,372) ................... 888,646,146
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS--3.7%
Health Care (Drugs-Major Pharmaceuticals)--0.6%
Elan Corp. PLC Sponsored ADR
(Ireland)(b) ..................................... 379,600 9,774,700
Oil (International Integrated)--1.9%
BP Amoco PLC Sponsored ADR
(United Kingdom) ................................. 517,786 29,902,141
Telecommunications (Cellular/Wireless)--1.2%
Vodafone AirTouch PLC Sponsored
ADR (United Kingdom) ............................. 400,000 19,175,000
- --------------------------------------------------------------------------------
Total Foreign Common Stocks
(Identified cost $40,040,684) .................... 58,851,841
- --------------------------------------------------------------------------------
<PAGE>
SHARES VALUE
------ -----
UNIT INVESTMENT TRUSTS--1.2%
S&P 500 Depository Receipts ...................... 143,500 $ 19,623,625
- --------------------------------------------------------------------------------
Total Unit Investment Trusts
(Identified cost $18,854,982) .................... 19,623,625
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total Long-Term Investments--98.7%
(Identified cost $1,292,602,882) ................. 1,579,213,237
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000)
----------- --------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--1.2%
Commercial Paper--0.7%
General Electric Capital Corp. 5.25%,
11/1/99 .......................................... A-1+ $ 4,960 4,960,000
Albertson's, Inc. 5.35%, 11/10/99 ................ A-1 5,365 5,357,824
Lexington Parker Capital Co. LLC 5.40%,
11/15/99 ......................................... A-1 1,650 1,646,535
------------
11,964,359
------------
Federal Agency Securities--0.5%
FMC Discount Note 5.16%, 11/1/99 ................. 7,245 7,245,000
- --------------------------------------------------------------------------------------------------
Total Short-Term Obligations
(Identified cost $19,209,359) .................... 19,209,359
- --------------------------------------------------------------------------------------------------
Total Investments--99.9%
(Identified Cost $1,311,812,241) ................. 1,598,422,596(a)
Cash and receivables, less liabilities--0.1% ..... 1,216,765
--------------
NET ASSETS--100.0% ............................... $1,599,639,361
==============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $319,771,852 and gross
depreciation of $36,181,562 for federal income tax purposes. At October 31,
1999, the aggregate cost of securities for federal income tax purpose was
$1,314,832,306.
(b) Non-income producing.
(c) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31,
1999, these securities amounted to a value of $81,317,017 or 5.1% 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 51
<PAGE>
Phoenix-Oakhurst Balanced Fund Series
<TABLE>
<CAPTION>
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- -------- ------------
<S> <C> <C> <C>
Telecommunications (Long Distance)--0.4%
Nextlink Communications, Inc. 10.75%,
11/15/08 ......................................... B $ 2,000 $ 2,025,000
Qwest Communications International, Inc.
Series B 7.50%, 11/1/08 .......................... BB+ 4,300 4,283,875
-----------
6,308,875
-----------
Telephone--0.2%
Century Telephone Enterprises, Inc.
Series F 6.30%, 1/15/08 .......................... BBB+ 3,000 2,771,250
Textiles (Home Furnishings)--0.3%
Westpoint Stevens, Inc. 7.875%,
6/15/05 .......................................... BB 4,365 4,103,100
Truckers--0.1%
Teekay Shipping Corp. 8.32%, 2/1/08 .............. BB+ 2,640 2,356,200
Trucks & Parts--0.1%
Cummins Engine Co., Inc. 6.45%,
3/1/05 ........................................... BBB+ 2,060 1,949,275
- ----------------------------------------------------------------------------------------------------
Total Corporate Bonds
(Identified cost $84,482,776) .................... 80,462,787
- ----------------------------------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED SECURITIES--7.7%
CS First Boston Mortgage Securities Corp.
97-C2, A3 6.55%, 11/17/07 ........................ AAA 10,750 10,276,328
CS First Boston Mortgage Securities Corp.
97-C2, B 6.72%, 11/17/07(d) ...................... Aa 9,000 8,505,000
CS First Boston Mortgage Securities Corp.
98-C1, A1B 6.48%, 5/17/08 ........................ AAA 10,000 9,440,625
DLJ Commercial Mortgage Corp. 98-CF2,
A1B 6.24%, 11/12/31(d) ........................... Aaa 4,000 3,727,500
DLJ Mortgage Acceptance Corp. 96-CF1,
A1B 144A 7.58%, 2/12/06(c) ....................... AAA 6,550 6,603,219
First Union - Lehman Brothers - Bank of
America 98-C2, A2 6.56%, 11/18/08 ................ AAA 2,000 1,909,713
First Union - Lehman Brothers Commercial
Mortgage 97-C1, B 7.43%, 4/18/07(d) .............. Aa 11,807 11,756,670
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- -------- ------------
<S> <C> <C> <C>
G.E. Capital Mortgage Services, Inc. 96-8,
1M 7.25%, 5/25/26 ................................ AA $ 5,249 $ 5,091,302
GMAC Commercial Mortgage Securities,
Inc. 97-C2, B 6.703%, 12/15/07(d) ................ Aa 5,000 4,643,250
LB Commercial Conduit Mortgage Trust
98-C4, A1B 6.21%, 10/15/08 ....................... AAA 10,060 9,328,598
Lehman Large Loan 97-LLI, B 6.95%,
3/12/07 .......................................... AA 10,825 10,519,776
Nationslink Funding Corp. 96-1, B 7.69%,
12/20/05 ......................................... AA 6,157 6,207,247
Nationslink Funding Corp. 99-1,
A2 6.316%, 11/20/08 .............................. AAA 2,050 1,925,719
Prudential Home Mortgage
Securities 93-L, 2B3 144A 6.641%,
12/25/23(c)(d) ................................... A 5,000 4,856,250
Residential Funding Mortgage
Securities I 96-S8, A4 6.75%, 3/25/11 ............ AAA 1,891 1,849,892
Residential Funding Mortgage
Securities I 96-S1, A11 7.10%, 1/25/26 ........... AAA 6,600 6,406,125
Residential Funding Mortgage
Securities I 96-S4, M1 7.25%, 2/25/26 ............ AA 5,764 5,570,372
Securitized Asset Sales, Inc. 93-J, 2B
6.808%, 11/28/23(d) .............................. AA 9,563 9,185,389
Structured Asset Securities Corp. 93-C1,
B 6.60%, 10/25/24 ................................ A+ 4,550 4,506,293
- ----------------------------------------------------------------------------------------------------
Total Non-Agency Mortgage-Backed Securities
(Identified cost $126,684,296) ................... 122,309,268
- ----------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--2.4%
Colombia--0.5%
Republic of Colombia 9.75%, 4/23/09 .............. BB+ 9,140 8,351,675
Croatia--0.6%
Croatia Series A 6.456%, 7/31/10(e) .............. BBB- 5,805 4,702,050
Croatia Series B 6.456%, 7/31/06(e) .............. BBB- 4,522 3,883,206
-----------
8,585,256
-----------
</TABLE>
52 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Balanced Fund Series
<TABLE>
<CAPTION>
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- -------- ------------
<S> <C> <C> <C>
El Salvador--0.4%
Republic of El Salvador 144A 9.50%,
8/15/06(c) ....................................... BB+ $ 7,000 $ 6,965,000
Poland--0.3%
Poland Bearer PDI 5%, 10/27/14(e) ................ BBB 5,080 4,508,500
South Korea--0.2%
Republic of Korea 8.875%, 4/15/08 ................ BBB- 3,500 3,641,313
Uruguay--0.4%
Republic of Uruguay 7.25%, 5/4/09 ................ BBB- 6,900 6,472,200
- ----------------------------------------------------------------------------------------------------
Total Foreign Government Securities
(Identified cost $38,683,315) .................... 38,523,944
- ----------------------------------------------------------------------------------------------------
FOREIGN CORPORATE BONDS--2.6%
Argentina--0.3%
Compania de Radiocomunicaciones
Moviles SA 144A 9.25%, 5/8/08(c) ................. BBB- 3,400 2,958,000
Telecom Argentina - France Telecom
SA EMTN 144A 9.75%, 7/12/01(c) ................... BBB- 2,250 2,250,000
-----------
5,208,000
-----------
Bahamas--0.2%
Sun International Hotels Ltd. 8.625%,
12/15/07 ......................................... B+ 3,000 2,767,500
Canada--0.2%
Imax Corp. 7.875%, 12/1/05 ....................... BB- 2,935 2,714,875
Chile--0.4%
Compania Sud Americana de Vapores
144A 7.375%, 12/8/03(c) .......................... BBB 4,500 4,275,000
Petropower I Funding Trust 144A 7.36%,
2/15/14(c) ....................................... BBB 2,487 2,139,231
-----------
6,414,231
-----------
Japan--0.8%
IBJ Preferred Capital Co. LLC 144A 8.79%,
12/29/49(c)(d)(e) ................................ Ba 6,800 6,437,343
SB Treasury Co. LLC Series A 144A 9.40%,
12/29/49(c)(e) ................................... BB+ 6,800 6,837,488
-----------
13,274,831
-----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- -------- ------------
<S> <C> <C> <C>
Luxembourg--0.4%
Tyco International Group
SA 6.375%, 6/15/05 ............................... A- $ 6,700 $ 6,348,250
Poland--0.2%
TPSA Finance BV 144A 7.75%,
12/10/08(c) ...................................... BBB 3,095 2,920,906
United Kingdom--0.1%
Orange PLC 144A 8.75%, 6/1/06(c) ................. BB- 1,000 1,030,000
- ----------------------------------------------------------------------------------------------------
Total Foreign Corporate Bonds
(Identified cost $42,542,445) .................... 40,678,593
- ----------------------------------------------------------------------------------------------------
SHARES
--------
PREFERRED STOCKS--0.5%
REITS--0.5%
Home Ownership Funding 2, Step-down
Pfd. 144A 13.338%(c)(e) .......................... 10,000 8,442,520
- ----------------------------------------------------------------------------------------------------
Total Preferred Stocks
(Identified cost $8,487,365) ..................... 8,442,520
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS--55.6%
Banks (Major Regional)--2.6%
Mellon Financial Corp. ........................... 216,600 8,000,662
Wells Fargo Co. .................................. 702,400 33,627,400
-----------
41,628,062
-----------
Banks (Money Center)--1.6%
Bank of America Corp. ............................ 392,340 25,256,887
Beverages (Non-Alcoholic)--1.3%
PepsiCo, Inc. .................................... 590,500 20,482,969
Broadcasting (Television, Radio & Cable)--3.7%
AMFM, Inc.(b) .................................... 130,500 9,135,000
AT&T Corp.-Liberty Media Group
Class A(b) ....................................... 787,800 31,265,812
CBS Corp.(b) ..................................... 215,700 10,528,856
Clear Channel Communications, Inc.(b) ............ 99,800 8,021,425
-----------
58,951,093
-----------
</TABLE>
See Notes to Financial Statements 53
<PAGE>
Phoenix-Oakhurst Balanced Fund Series
SHARES VALUE
------ -----
Communications Equipment--1.8%
General Motors Corp. Class H(b) .................. 99,000 $ 7,208,437
Motorola, Inc. ................................... 60,000 5,846,250
Tellabs, Inc.(b) ................................. 239,000 15,116,750
------------
28,171,437
------------
Computers (Hardware)--4.4%
Dell Computer Corp.(b) ........................... 377,700 15,155,212
International Business Machines Corp. ............ 344,800 33,919,700
Sun Microsystems, Inc.(b) ........................ 195,700 20,707,506
------------
69,782,418
------------
Computers (Networking)--2.5%
Cisco Systems, Inc.(b) ........................... 547,674 40,527,876
Computers (Software & Services)--4.5%
America Online, Inc.(b) .......................... 122,100 15,834,844
Microsoft Corp.(b) ............................... 547,000 50,631,687
Yahoo!, Inc.(b) .................................. 30,400 5,443,500
------------
71,910,031
------------
Consumer Finance--0.4%
Capital One Financial Corp ....................... 121,500 6,439,500
Distributors (Food & Health)--0.6%
Cardinal Health, Inc. ............................ 210,900 9,095,062
Electric Companies--0.3%
Duke Energy Corp. ................................ 84,600 4,779,900
Electrical Equipment--2.2%
General Electric Co. ............................. 262,400 35,571,600
Electronics (Instrumentation)--0.1%
Waters Corp.(b) .................................. 40,000 2,125,000
Electronics (Semiconductors)--2.6%
Intel Corp. ...................................... 530,800 41,103,825
Financial (Diversified)--4.3%
Citigroup, Inc. .................................. 566,250 30,648,281
Freddie Mac ...................................... 172,000 9,298,750
Morgan Stanley Dean Witter & Co .................. 255,900 28,228,969
------------
68,176,000
------------
Health Care (Diversified)--1.6%
Bristol-Myers Squibb Co. ......................... 333,800 25,640,012
Health Care (Drugs-Major Pharmaceuticals)--2.4%
Pfizer, Inc. ..................................... 521,700 20,607,150
Schering-Plough Corp. ............................ 348,200 17,235,900
------------
37,843,050
------------
<PAGE>
SHARES VALUE
------ -----
Health Care (Medical Products & Supplies)--1.2%
Bard (C.R.), Inc. ................................ 100,000 $ 5,393,750
Baxter International, Inc. ....................... 210,500 13,656,188
------------
19,049,938
------------
Household Products (Non-Durable)--1.8%
Fort James Corp. ................................. 50,000 1,315,625
Kimberly-Clark Corp. ............................. 55,000 3,471,875
Procter & Gamble Co. (The) ....................... 225,700 23,670,288
------------
28,457,788
------------
Insurance (Multi-Line)--1.4%
American International Group, Inc. ............... 220,500 22,697,719
Lodging-Hotels--0.6%
Carnival Corp. ................................... 233,100 10,372,950
Manufacturing (Diversified)--1.8%
Tyco International Ltd. .......................... 702,600 28,060,088
Oil & Gas (Drilling & Equipment)--0.8%
Halliburton Co. .................................. 134,400 5,065,200
Schlumberger Ltd. ................................ 87,300 5,287,106
Transocean Offshore, Inc. ........................ 100,000 2,718,750
------------
13,071,056
------------
Oil & Gas (Exploration & Production)--0.3%
Anadarko Petroleum Corp. ......................... 153,800 4,738,963
Oil (Domestic Integrated)--0.7%
Conoco, Inc. Class A ............................. 419,700 11,515,519
Paper & Forest Products--0.2%
Georgia-Pacific Group ............................ 19,000 754,063
International Paper Co. .......................... 48,000 2,526,000
------------
3,280,063
------------
Personal Care--0.5%
Gillette Co. (The) ............................... 236,500 8,558,344
Retail (Building Supplies)--1.4%
Home Depot, Inc. (The) ........................... 301,400 22,755,700
Retail (Computers & Electronics)--0.8%
Tandy Corp. ...................................... 201,800 12,700,788
Retail (Food Chains)--0.5%
Kroger Co. (The)(b) .............................. 172,580 3,591,821
Safeway, Inc.(b) ................................. 131,700 4,650,656
------------
8,242,477
------------
Retail (General Merchandise)--1.8%
Wal-Mart Stores, Inc. ............................ 518,000 29,590,750
54 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Balanced Fund Series
SHARES VALUE
------ -----
Retail (Home Shopping)--0.1%
Lands' End, Inc.(b) .............................. 21,000 $ 1,615,688
Retail (Specialty)--0.6%
Staples, Inc.(b) ................................. 429,375 9,526,758
Telecommunications (Long Distance)--3.3%
AT&T Corp. ....................................... 648,034 30,295,590
MCI WorldCom, Inc.(b) ............................ 253,399 21,744,839
-----------
52,040,429
-----------
Telephone--0.8%
SBC Communications, Inc. ......................... 262,300 13,360,906
Textiles (Apparel)--0.1%
Tommy Hilfiger Corp.(b) .......................... 54,000 1,525,500
- --------------------------------------------------------------------------------
Total Common Stocks
(Identified cost $603,270,372) ................... 888,646,146
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS--3.7%
Health Care (Drugs-Major Pharmaceuticals)--0.6%
Elan Corp. PLC Sponsored ADR
(Ireland)(b) ..................................... 379,600 9,774,700
Oil (International Integrated)--1.9%
BP Amoco PLC Sponsored ADR
(United Kingdom) ................................. 517,786 29,902,141
Telecommunications (Cellular/Wireless)--1.2%
Vodafone AirTouch PLC Sponsored
ADR (United Kingdom) ............................. 400,000 19,175,000
- --------------------------------------------------------------------------------
Total Foreign Common Stocks
(Identified cost $40,040,684) .................... 58,851,841
- --------------------------------------------------------------------------------
<PAGE>
SHARES VALUE
------ -----
UNIT INVESTMENT TRUSTS--1.2%
S&P 500 Depository Receipts ...................... 143,500 $ 19,623,625
- --------------------------------------------------------------------------------
Total Unit Investment Trusts
(Identified cost $18,854,982) .................... 19,623,625
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total Long-Term Investments--98.7%
(Identified cost $1,292,602,882) ................. 1,579,213,237
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STANDARD
& POORS PAR
RATING VALUE
(Unaudited) (000)
----------- --------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--1.2%
Commercial Paper--0.7%
General Electric Capital Corp. 5.25%,
11/1/99 .......................................... A-1+ $ 4,960 4,960,000
Albertson's, Inc. 5.35%, 11/10/99 ................ A-1 5,365 5,357,824
Lexington Parker Capital Co. LLC 5.40%,
11/15/99 ......................................... A-1 1,650 1,646,535
------------
11,964,359
------------
Federal Agency Securities--0.5%
FMC Discount Note 5.16%, 11/1/99 ................. 7,245 7,245,000
- --------------------------------------------------------------------------------------------------
Total Short-Term Obligations
(Identified cost $19,209,359) .................... 19,209,359
- --------------------------------------------------------------------------------------------------
Total Investments--99.9%
(Identified Cost $1,311,812,241) ................. 1,598,422,596(a)
Cash and receivables, less liabilities--0.1% ..... 1,216,765
--------------
NET ASSETS--100.0% ............................... $1,599,639,361
==============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $319,771,852 and gross
depreciation of $36,181,562 for federal income tax purposes. At October 31,
1999, the aggregate cost of securities for federal income tax purpose was
$1,314,832,306.
(b) Non-income producing.
(c) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31,
1999, these securities amounted to a value of $81,317,017 or 5.1% 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 55
<PAGE>
Phoenix-Oakhurst Balanced Fund Series
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
<TABLE>
<CAPTION>
Assets
<S> <C>
Investment securities at value
(Identified cost $1,311,812,241) $ 1,598,422,596
Short-term investments held as collateral for
loaned securities 28,024,053
Cash 153,942
Receivables
Interest and dividends 8,365,453
Fund shares sold 236,966
Investment securities sold 45,145
Prepaid expenses 29,227
--------------
Total assets 1,635,277,382
--------------
Liabilities
Payables
Collateral on securities loaned 28,024,053
Investment securities purchased 4,153,717
Fund shares repurchased 1,766,455
Investment advisory fee 705,426
Transfer agent fee 359,805
Distribution fee 354,840
Financial agent fee 42,088
Trustees' fee 4,216
Accrued expenses 227,421
--------------
Total liabilities 35,638,021
--------------
Net Assets $ 1,599,639,361
===============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $1,212,497,198
Undistributed net investment income 7,143,938
Accumulated net realized gain 93,387,870
Net unrealized appreciation 286,610,355
--------------
Net Assets $1,599,639,361
==============
Class A
Shares of beneficial interest outstanding,
$1.00 par value, unlimited authorization
(Net Assets $1,561,026,006) 87,103,881
Net asset value per share $17.92
Offering price per share $17.92/(1-4.75%) $18.81
Class B
Shares of beneficial interest outstanding, $1.00 par value,
unlimited authorization (Net Assets $38,613,355) 2,162,856
Net asset value and offering price per share $17.85
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
Investment Income
Interest $ 43,722,717
Dividends 8,143,742
Security lending 306,715
Foreign taxes withheld (52,037)
--------------
Total investment income 52,121,137
--------------
Expenses
Investment advisory fee 8,742,404
Distribution fee, Class A 4,028,753
Distribution fee, Class B 369,796
Financial agent fee 482,554
Transfer agent 2,216,896
Printing 156,686
Custodian 117,721
Professional 50,139
Trustees 19,481
Registration 10,505
Miscellaneous 63,358
--------------
Total expenses 16,258,293
Custodian fees paid indirectly (1,010)
--------------
Net expenses 16,257,283
--------------
Net investment income 35,863,854
--------------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 96,133,633
Net change in unrealized appreciation(depreciation) on
investments 121,818,561
--------------
Net gain on investments 217,952,194
--------------
Net increase in net assets resulting from operations $253,816,048
==============
56 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Balanced Fund Series
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/99 10/31/98
---------- ----------
<S> <C> <C>
From Operations
Net investment income (loss) $ 35,863,854 $ 40,274,583
Net realized gain (loss) 96,133,633 66,036,415
Net change in unrealized appreciation (depreciation) 121,818,561 40,037,609
--------------- ---------------
Increase (decrease) in net assets resulting from operations 253,816,048 146,348,607
--------------- ---------------
From Distributions to Shareholders
Net investment income, Class A (35,733,708) (38,891,099)
Net investment income, Class B (587,211) (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 (96,746,161) (294,220,728)
--------------- ---------------
From Share Transactions
Class A
Proceeds from sales of shares (3,094,136 and 4,154,476 shares, respectively) 53,824,896 68,017,312
Net asset value of shares issued from reinvestment of distributions
(5,171,102 and 17,381,042 shares, respectively) 87,493,618 266,854,723
Cost of shares repurchased ( 16,196,289 and 20,727,390 shares, respectively) (282,470,843) (343,685,337)
--------------- ---------------
Total (141,152,329) (8,813,302)
--------------- ---------------
Class B
Proceeds from sales of shares ( 404,309 and 375,257 shares, respectively) 7,032,370 6,251,773
Net asset value of shares issued from reinvestment of distributions
(102,012 and 309,117 shares, respectively) 1,720,281 4,734,129
Cost of shares repurchased (373,100 and 329,841 shares, respectively) (6,493,887) (5,437,703)
--------------- ---------------
Total 2,258,764 5,548,199
--------------- ---------------
Increase (decrease) in net assets from share transactions (138,893,565) (3,265,103)
--------------- ---------------
Net increase (decrease) in net assets 18,176,322 (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 $7,143,938 and $6,718,980 respectively) $1,599,639,361 $1,581,463,039
=============== ===============
</TABLE>
See Notes to Financial Statements 57
<PAGE>
Phoenix-Oakhurst Balanced Fund Series
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------
Year Ended October 31
----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1999 1998 1997 1996 1995
Net asset value, beginning of period $16.29 $18.07 $17.56 $17.04 $15.23
Income from investment operations
Net investment income (loss) 0.40 0.42 0.48 0.48 0.52
Net realized and unrealized gain (loss) 2.25 0.90 2.38 1.46 1.80
------ ------ ------ ------ ------
Total from investment operations 2.65 1.32 2.86 1.94 2.32
------ ------ ------ ------ ------
Less distributions
Dividends from net investment income (0.39) (0.40) (0.48) (0.49) (0.51)
Dividends from net realized gains (0.63) (2.70) (1.87) (0.93) --
------ ------ ------ ------ ------
Total distributions (1.02) (3.10) (2.35) (1.42) (0.51)
------ ------ ------ ------ ------
Change in net asset value 1.63 (1.78) 0.51 0.52 1.81
------ ------ ------ ------ ------
Net asset value, end of period $17.92 $16.29 $18.07 $17.56 $17.04
====== ====== ====== ====== ======
Total return(1) 16.73% 8.68% 18.04% 12.03% 15.52%
Ratios/supplemental data:
Net assets, end of period (thousands) $1,561,026 $1,548,475 $1,702,385 $1,897,306 $2,345,440
Ratio to average net assets of:
Operating expenses 0.97%(2) 0.97% 0.98% 1.01% 1.02%
Net investment income 2.19% 2.41% 2.65% 2.74% 3.27%
Portfolio turnover 57% 138% 206% 191% 197%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------------
Year Ended October 31
---------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $16.25 $18.04 $17.54 $17.01 $15.23
Income from investment operations
Net investment income (loss) 0.27 0.30 0.35 0.35 0.40
Net realized and unrealized gain (loss) 2.24 0.90 2.37 1.47 1.80
------ ------ ------ ------ ------
Total from investment operations 2.51 1.20 2.72 1.82 2.20
------ ------ ------ ------ ------
Less distributions
Dividends from net investment income (0.28) (0.29) (0.35) (0.36) (0.42)
Dividends from net realized gains (0.63) (2.70) (1.87) (0.93) --
------ ------ ------ ------ ------
Total distributions (0.91) (2.99) (2.22) (1.29) (0.42)
------ ------ ------ ------ ------
Change in net asset value 1.60 (1.79) 0.50 0.53 1.78
------ ------ ------ ------ ------
Net asset value, end of period $17.85 $16.25 $18.04 $17.54 $17.01
====== ====== ====== ====== ======
Total return(1) 15.84% 7.91% 17.13% 11.24% 14.68%
Ratios/supplemental data:
Net assets, end of period (thousands) $38,613 $32,988 $30,216 $26,209 $16,971
Ratio to average net assets of:
Operating expenses 1.72%(2) 1.72% 1.73% 1.76% 1.78%
Net investment income 1.45% 1.66% 1.90% 1.96% 2.46%
Portfolio turnover 57% 138% 206% 191% 197%
</TABLE>
- --------------------
(1) Maximum sales load is not reflected in the total return calculation.
(2) For the year ended October 31, 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.
58 See Notes to Financial Statements
<PAGE>
Phoenix Series Fund
Notes to Financial Statements
October 31, 1999
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 Core Bond Fund (formerly U.S. Government) seeks to
provide both current income and capital appreciation. The Aggressive Growth Fund
seeks appreciation of capital through the use of aggressive investment
techniques. The Capital Growth Fund seeks a 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 Balanced Fund seeks to provide reasonable
income, long-term capital growth and conservation of capital.
Each Series offers both Class A and Class B shares and, additionally, Core
Bond Fund, High Yield Fund, and Money Market Fund offer 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 Fund 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.
<PAGE>
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.
59
<PAGE>
Phoenix Series Fund
Notes to Financial Statements
October 31, 1999 (continued)
F. Forward currency contracts:
Each of the Funds, except the Core Bond 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
October 31, 1999, the Trust had the following amounts of securities on loan and
related collateral:
Value of
Value of Securities
Collateral on Loan
----------- -----------
Balanced Fund ................... $48,595,147 $47,328,212
Capital Growth Fund ............. 15,473,100 15,076,813
Aggressive Growth Fund .......... 38,473,422 37,259,857
<PAGE>
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 the Core Bond 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 Fund 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 the Core Bond and Money Market Fund, may purchase
options which are included in the Series' Schedule of Investments and
subsequently marked-to-market to reflect the current value of the option. When a
purchased option is exercised, the cost of the security is adjusted by the
amount of premium paid. The risk associated with purchased options is limited to
the premium paid.
J. When-issued and delayed delivery transactions:
Each 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.
K. Swap Agreements:
The Trust may invest in swap agreements for the purpose of hedging against
changes in interest rates or foreign currencies. Swap agreements involve the
exchange by the Funds with another party of their respective commitments to pay
or receive interest, (e.g., an exchange of floating rate payments for fixed rate
payments) with respect to a notional amount of principal. Swaps are marked to
market daily based upon quotations from market makers and the change, if any, is
recorded as an unrealized gain or loss in the Statement of Operations. Net
payments of interest are recorded as interest income. Entering into these
agreements involves, to varying degrees, elements of credit and market risk in
excess of the amounts recognized on the Statement of Assets and Liabilities.
Such risks involve the possibility that there will be no liquid market for these
agreements, that the counterparty to the agreement may default on its obligation
to perform and that there may be unfavorable changes in the fluctuation of
interest and/or exchange rates.
60
<PAGE>
Phoenix Series Fund
Notes to Financial Statements
October 31, 1999 (continued)
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
As compensation for their services to the Trust, the Advisers, Phoenix
Investment Counsel, Inc. ("PIC"), an indirect majority-owned subsidiary of
Phoenix Home Life Mutual Insurance Company ("PHL"), and Duff & Phelps Investment
Management Co. ("DPIM"), a subsidiary of Phoenix Investment Partners, Ltd.,
formerly Phoenix, Duff & Phelps Corporation, which is an indirect majority owned
subsidiary of PHL are entitled to a fee based upon the following annual rates as
a percentage of the average daily net assets of each separate Series:
1st $1 $1-2 $2+
Series Billion Billion Billion
- ------ ------- ------- -------
Core Bond Fund .................. 0.45% 0.40% 0.35%
Aggressive Growth Fund .......... 0.70% 0.65% 0.60%
Capital 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%
Balanced Fund ................... 0.55% 0.50% 0.45%
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 October 8, 1999, DPIM was appointed Adviser to the Core Bond
Fund. DPIM was substituted for PIC under the investment management agreement for
the Fund. Roger Engemann & Associates, Inc. ("REA") became the subadvisor to the
Aggressive Growth Fund and Capital Growth Fund effective June 25, 1998 and
August 6, 1999, respectively. For 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 and a fee equal to 0.10% of the average daily net assets of
the Capital Growth Fund up to $3 billion and 0.30% of such value in excess of $3
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 $390,176
for Class A shares, deferred sales charges of $720,666 for Class B shares and
$1,586 for Class C shares, for the year ended October 31, 1999. In addition,
each Series 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 applied to the average daily net assets of each Fund; the
distribution fee for the Money Market Fund is 0%, 0.75% and 1.00% for Class A,
Class B and Class C, respectively. The distributor has advised the Trust that of
the total amount expensed for the year ended October 31, 1999, $3,306,183 was
earned by the Distributor, $10,841,983 was earned by unaffiliated participants,
and $1,456,300 was paid to W.S. Griffith, an indirect subsidiary of PHL.
<PAGE>
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 year ended October 31, 1999, transfer
agent fees were $7,486,526 of which PEPCO retained $3,352,348 which is net of
fees paid to State Street.
At October 31, 1999, PHL and affiliates held Phoenix Series Fund shares
which aggregated the following:
Aggregate
Net Asset
Shares Value
---------- ----------
Core Bond Fund ................................. 339 $1,2213,065
Aggressive Growth Fund ......................... 14,432 337,709
High Yield Fund ................................ 481 3,622
Money Market Fund .............................. 13,756,223 13,756,223
The Adviser voluntarily contributed capital to Phoenix-Engemann Capital
Growth Fund in the amount of $4,720,017 as disclosed in the statement of
changes. This contribution offset losses realized on the sale of certain
securities by the Fund. The Adviser received no shares of beneficial interest or
other consideration in exchange for this contribution which increased the net
asset value of the Fund.
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the year ended October 31, 1999
(excluding U.S. Government and agency securities and short-term securities)
aggregated the following:
Purchases Sales
-------------- --------------
Core Bond Fund ................................. $1,123,248,056 $1,172,557,114
Aggressive Growth Fund ......................... 501,223,830 523,163,874
Capital Growth Fund ............................ 2,722,842,911 3,024,288,191
High Yield Fund ................................ 347,675,776 402,017,278
Balanced Fund .................................. 706,547,836 846,601,256
61
<PAGE>
Phoenix Series Fund
Notes to Financial Statements
October 31, 1999 (continued)
Purchases and sales of U.S. Government and agency securities during the
year ended October 31, 1999, aggregated the following:
Purchases Sales
------------ ------------
Core Bond Fund ................................. $168,432,248 $137,845,917
Balanced Fund .................................. 143,670,001 166,059,720
At October 31, 1999, the High Yield Fund had the following swap agreements
outstanding:
Unrealized
Appreciation
Notional Amount (Depreciation)
- -------------- ------------
$2,880,900 Agreement with Chase Manhattan Bank
terminating on November 1, 2001 to
receive interest at 14.23% in exchange
for payment of 11.875% on EUR 2,700,000 $30,710
$4,200,000 Agreement with Morgan Stanley Capital
Services Inc. terminating on November 1,
2004 to receive interest at 13.26% in
exchange for payment of 11.25% on EUR
4,000,000 0
-------
$30,710
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.
Core Bond High Yield
Expiration Date Fund Series Fund
- --------------- ----------- ------------
2002 .......................................... $ 15,893,108 $114,103,053
2003 .......................................... -- 46,929,335
2004 .......................................... 2,433,827 --
2006 .......................................... -- 1,533,950
2007 .......................................... 6,429,814 38,223,988
------------ ------------
Total ......................................... $ 14,756,749 $100,790,326
============ ============
For the fiscal year ended October 31, 1999, the Aggressive Growth Fund had
losses deferred in the prior year of $6,125,513 which were utilized in the
current year.
<PAGE>
6. RECLASS OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, the Funds have recorded
several reclassifications in the capital accounts. These reclassifications have
no impact on the net asset value of the Funds and are designed generally to
present undistributed income and realized gains on a tax basis which is
considered to be more informative to the shareholder. As of October 31, 1999,
the Funds recorded the following reclassifications to increase (decrease) the
accounts listed below:
Accumulated Capital
Undistributed net realized in on shares
net investment gain of beneficial
income (loss) (loss) interest
----------- ---------- -----------
Core Bond Fund ............... $ 1,093,276 $(1148,386 $(1,241,662)
Aggressive Growth Fund ....... 1,493,317 (1,493,317) --
Capital Growth Fund .......... 7,296,538 (5,413) (7,291,125)
High Yield Fund .............. 553,988 (393,597) (160,391)
Balanced Fund ................ 882,023 (282,823) (599,200)
TAX INFORMATION NOTICE (Unaudited)
For the fiscal year ended October 31, 1999, the following Funds distributed
long-term capital gain dividends as follows:
Capital Growth Fund .................................. $237,509,989
Balanced Fund ........................................ 60,425,242
For federal income tax purposes, 18.37% of the ordinary income dividends
paid by the Balanced Fund qualify for the dividends received deduction for
corporate shareholders.
This report is not authorized for distribution to prospective investors in the
Phoenix Series Fund unless preceded or accompanied by an effective Prospectus
which includes information concerning the sales charge, Fund's record and other
pertinent information.
62
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[PRICEWATERHOUSECOOPERS LOGO]
To the Trustees and Shareholders of
Phoenix Series Fund
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments (except for bond ratings), and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Phoenix-Duff & Phelps Core Bond Fund, Phoenix-Engemann Aggressive Growth Fund,
Phoenix-Engemann Capital Growth Fund, Phoenix-Goodwin High Yield Fund,
Phoenix-Goodwin Money Market Fund and Phoenix-Oakhurst Balanced Fund (formerly
known as Phoenix U.S. Government Securities Fund Series, Phoenix Aggressive
Growth Fund Series, Phoenix Growth Fund Series, Phoenix High Yield Fund Series,
Phoenix Money Market Fund Series, and Phoenix Balanced Fund Series,
respectively) (constituting the Phoenix Series Fund, hereinafter referred to as
the "Fund") at October 31, 1999, and the results of each of their operations for
the year then ended, the changes in each of their net assets for each of the two
years in the period then ended and the financial highlights for the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at October
31, 1999 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
[PRICEWATERHOUSECOOPERS SIGNATURE]
Boston, Massachusetts
December 16, 1999
63
<PAGE>
RESULTS OF SHAREHOLDER MEETING (Unaudited)
A special meeting of Shareholders of the Phoenix Series Fund was held on August
6, 1999 to approve the following matters:
o Fix the number of trustees at twelve and elect such number as detailed below.
o Ratification of the selection of PricewaterhouseCoopers LLP as the Trust's
independent auditors for the fiscal year ending October 31, 1999.
o Approval of a change in the investment objective (Phoenix-Duff & Phelps Core
Bond Fund only)
o Approval of an advisory agreement with Duff & Phelps Investment Management
Co. (Phoenix-Duff & Phelps Core Bond Fund only)
o Approval of a subadvisory agreement with Roger Engemann & Associates, Inc.
(Phoenix-Engemann Capital Growth Fund only)
On the record date for this meeting, the number of shares outstanding and the
number of shares entitled to vote that were present by proxy were as follows:
Shares entitled to
Shares vote that were
outstanding present by proxy
----------- ------------------
Phoenix Series Fund 517,161,755 53.41%
Phoenix-Duff & Phelps Core Bond Fund 118,654,841 52.59%
Phoenix-Engemann Capital Growth Fund 102,906,168 53.57%
NUMBER OF VOTES
For Withheld
----------- --------
1. Election of Trustees
Robert Chesek 271,263,135 4,946,866
E. Virgil Conway 271,098,150 5,111,851
Harry Dalzell-Payne 271,120,831 5,089,170
Francis E. Jeffries 271,169,550 5,040,451
Leroy Keith, Jr 271,391,998 4,818,003
Philip R. McLoughlin 271,295,037 4,914,964
Everett L. Morris 271,098,294 5,111,707
James M. Oates 271,216,556 4,993,445
Calvin J. Pedersen 271,270,043 4,939,958
Herbert Roth, Jr 271,117,366 5,092,635
Richard E. Segerson 271,243,085 4,966,916
Lowell P. Weicker, Jr 270,570,097 5,639,904
<TABLE>
<CAPTION>
For Withheld Abstain
----------- --------- ---------
<S> <C> <C> <C>
2. PricewaterhouseCoopers LLP 268,349,273 1,720,077 6,140,651
3. Approval of investment objective change 116,689,003 1,294,242 1,415,463
4. Approval of investment advisory agreement 119,109,017 1,240,605 1,460,215
5. Approval of investment subadvisory agreement 151,642,749 1,328,281 2,157,589
</TABLE>
64
<PAGE>
<TABLE>
<S> <C>
Phoenix Series Fund Investment Advisers
101 Munson Street Phoenix Investment Counsel, Inc.
Greenfield, Massachusetts 01301 56 Prospect Street
Hartford, Connecticut 06115-0480
Trustees
Robert Chesek Duff & Phelps Investment Management
E. Virgil Conway (Core Bond Fund)
Harry Dalzell-Payne 55 East Monroe Street
Francis E. Jeffries Chicago, IL 60603
Leroy Keith, Jr.
Philip R. McLoughlin Principal Underwriter
Everett L. Morris Phoenix Equity Planning Corporation
James M. Oates 100 Bright Meadow Boulevard
Calvin J. Pedersen P.O. Box 2200
Herbert Roth, Jr. Enfield, Connecticut 06083-2200
Richard E. Segerson
Lowell P. Weicker, Jr. Transfer Agent
Phoenix Equity Planning Corporation
Officers 100 Bright Meadow Boulevard
Philip R. McLoughlin, President P.O. Box 2200
Michael E. Haylon, Executive Vice President Enfield, Connecticut 06083-2200
John F. Sharry, Executive Vice President
J. Roger Engemann, Senior Vice President Custodian
James D. Wehr, Senior Vice President State Street Bank and Trust Company
David L. Albrycht, Vice President P.O. Box 351
Steven L. Colton, Vice President Boston, Massachusetts 02101
Christopher J. Kelleher, Vice President
James E. Mair, Vice President Independent Accountants
William R. Moyer, Executive Vice President PricewaterhouseCoopers LLP
Timothy P. Norman, Vice President 160 Federal Street
Michael Kearney, Vice President Boston, Massachusetts 02110
Christopher J. Saner, Vice President
Julie L. Sapia, Vice President How to Contact Us
Andrew Szabo, Vice President The Fund Connection 1-800-243-1574
John S. Tilson, Vice President Customer Service 1-800-243-1574
Nancy G. Curtiss, Treasurer Investment Strategy Hotline 1-800-243-4361
G. Jeffrey Bohne, Secretary (option 2)
Marketing Department 1-800-243-4361
(option 3)
Text Telephone 1-800-243-1926
World Wide Web address:
www.phoenixinvestments.com
</TABLE>
