<PAGE>
PHOENIX INVESTMENT PARTNERS
|
| ANNUAL REPORT
|
| OCTOBER 31, 2000
|
| -----------
|--- 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
<TABLE>
<S> <C>
The Phoenix-Duff & Phelps Core Bond Fund.................................. 2
The Phoenix-Engemann Aggressive Growth Fund............................... 10
The Phoenix-Engemann Capital Growth Fund.................................. 18
The Phoenix-Goodwin High Yield Fund....................................... 27
The Phoenix-Goodwin Money Market Fund..................................... 39
The Phoenix-Oakhurst Balanced Fund........................................ 47
Notes to Financial Statements............................................. 61
</TABLE>
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
[PHOTO]
We are pleased to provide this annual report for the 12 months ended
October 31, 2000. On the following pages, your Funds' portfolio managers review
market events over the past year and discuss their investment strategy. We hope
you find their comments informative. If you have any questions, please call your
financial advisor or contact us at 1-800-243-1574 or www.phoenixinvestments.com.
"PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS." Every investor is
familiar with this reminder that no one can predict accurately what your future
investment return will be based on past performance results. As we've seen this
year, financial markets can be quite changeable, revolving around investor
perceptions as much as hard facts. Because of the market's ever-changing nature,
many high-performing mutual funds may not repeat their gains from one year to
the next.
Establishing a long-term investment plan with the help of a trusted advisor is
a crucial step in achieving your personal financial goals. Another critical
ingredient to investor success is developing realistic expectations about your
investments and about market performance.
Our role is to help you build and preserve your capital over time. Your role
is to adopt an investing discipline and maintain a long-term market perspective.
Rely on your financial advisor to provide the insight and wisdom to keep you on
track.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
OCTOBER 31, 2000
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
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Fund is appropriate for investors seeking a total return in excess of the
bond market as defined by the Lehman Brothers Aggregate Bond Index(1). The Fund
strives to maintain an overall high credit quality rating of at least AA-.
Q: HOW WOULD YOU DESCRIBE YOUR FIXED-INCOME PHILOSOPHY?
A: Duff & Phelps Investment Management Company believes that diversified and
controlled exposures to a variety of risks associated with the fixed-income
markets provide 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: WHAT WAS THE FUND'S RETURN FOR THE FISCAL YEAR ENDED OCTOBER 31, 2000?
A: Class A shares returned 4.98%, Class B shares were up 4.21% and Class C
shares earned 4.30% compared with a return of 7.30% for the Lehman Brothers
Aggregate Bond Index. All performance figures assume reinvestment of
distributions and exclude the effect of sales charges.
Q: WHAT EVENTS DOMINATED THE FIXED-INCOME MARKET OVER THE LAST YEAR?
A: The past year was marked by two significant events. First, the Federal
Reserve continued to tighten monetary policy in the face of strengthening labor
markets. Second, the Treasury department announced that it would start buying
back long U.S. Treasury debt because of a ballooning budget surplus. Both events
caused disruptions in the fixed-income markets over the past year. The Fed
raised rates 1.25%. Long rates rose from 6.17% to 6.75%, before declining some
100 basis points because of the buyback announcement and modestly slower
economic news. In January, the Treasury's announcement caused long rates to
decline precipitously. Spread product, or non-Treasury debt, failed to follow
risk-free rates lower. Therefore, spread products underperformed significantly.
Q: WHAT FACTORS CONTRIBUTED TO PERFORMANCE?
A: The Fund's underperformance was caused by two factors. In the first quarter
of 2000, the Fund had a modest overweighting in spread product
(1) THE LEHMAN BROTHERS AGGREGATE BOND INDEX MEASURES BROAD BOND MARKET
TOTAL-RETURN PERFORMANCE. THE INDEX IS UNMANAGED AND NOT AVAILABLE FOR
DIRECT INVESTMENT.
2
<PAGE>
PHOENIX-DUFF & PHELPS CORE BOND FUND (CONTINUED)
(non-Treasury issues), which underperformed due to the buy-back announcement.
Also, during the first quarter, the portfolio restructuring effort, which is now
complete, affected performance. The Fund's performance did benefit from a number
of strategies during the year. First, we were underweighted in corporate bonds
in favor of high quality structured product, such as commercial mortgaged backs
and asset backs, which are both rated AAA. Corporate debt securities came under
pressure due to the tightening in monetary policy and the increase in leverage
taken on by "corporate America." Second, the mortgage-backed security sector
added positive performance to the Fund. While the Fund underperformed the Lehman
Brothers Aggregate Bond Index for the reporting period, its ranking within the
peer group has been steadily improving over the past year primarily due to the
emphasis placed on higher quality issues.
Q: WHAT IS YOUR CURRENT INVESTMENT OUTLOOK?
A: Over the next year, we expect economic growth to slow to 3% to 3.5%. Tighter
lending standards, lower stock market returns and higher oil prices should
hamper the ability of consumers to spend at the same levels we have seen over
the past few years. In turn, slowing consumption will cause corporate profit
margins to come under some pressure. This pressure should slow business capital
spending modestly. With the economy slowing, we expect the Federal Reserve to
move to a neutral stance early in 2001.
Spread product should benefit from the lack of Fed intervention and
historically cheap valuations. Also, we remain concerned with corporate credit
quality. With profit margins tightening and balance sheets leveraged, we believe
higher quality companies should be emphasized. The Phoenix-Duff & Phelps Core
Bond Fund is modestly overweighted in spread product to take advantage of what
we view as attractive yield levels, and we will continue to place an emphasis on
higher quality securities due to economic uncertainty.
NOVEMBER 27, 2000
SPREAD SECTORS ARE DEFINED AS NON-TREASURY BOND SECTORS. THEIR YIELDS ARE
TYPICALLY ABOVE THE YIELD OF A TREASURY SECURITY.
IN AUGUST 1999, 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 AND THAT THE FUND BE RENAMED
PHOENIX-DUFF & PHELPS CORE BOND FUND.
3
<PAGE>
Phoenix-Duff & Phelps Core Bond Fund
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 10/31/00
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR 5 YEARS 10 YEARS TO 10/31/00 DATE
------ ------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Class A Shares at NAV(2) 4.98% 4.55% 6.64% -- --
Class A Shares at POP(3) (0.01) 3.54 6.12 -- --
Class B Shares at NAV(2) 4.21 3.78 -- 4.22% 2/24/94
Class B Shares with CDSC(4) 0.28 3.78 -- 4.22 2/24/94
Class C Shares at NAV(2) 4.30 -- -- 4.58 10/12/99
Class C Shares with CDSC(4) 4.30 -- -- 4.58 10/12/99
Lehman Brothers Aggregate Bond
Index(7) 7.30 6.33 7.98 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 6.53% for Class B (since 2/28/94) and 7.05% for
Class C (since 9/30/99), 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 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.
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.
GROWTH OF $10,000 PERIODS ENDING 10/31
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PHOENIX-DUFF &
PHELPS CORE
BOND FUND LEHMAN BROTHERS AGGREGATE
CLASS A(6) BOND INDEX(7)
<S> <C> <C>
10/90 $ 9,525 $ 10,000
10/91 $ 10,881 $ 11,581
10/92 $ 11,941 $ 12,720
10/93 $ 13,157 $ 14,230
10/94 $ 12,633 $ 13,708
10/95 $ 14,505 $ 15,853
10/96 $ 15,093 $ 16,780
10/97 $ 16,278 $ 18,272
10/98 $ 17,606 $ 19,978
10/99 $ 17,259 $ 20,084
10/00 $ 18,119 $ 21,550
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
10/31/90 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 10/31/00
As a percentage of bond holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Agency Mortgage-Backed 54%
Asset-Backed 13%
U.S. Government 12%
Corporate 10%
Non-Agency Mortgage-Backed 9%
Municipal 2%
</TABLE>
4
<PAGE>
Phoenix-Duff & Phelps Core Bond Fund
TEN LARGEST HOLDINGS AT OCTOBER 31, 2000 (AS A PERCENTAGE OF TOTAL NET ASSETS)
<TABLE>
<C> <S> <C>
1. U.S. Government Securities 11.0%
U.S. TREASURY BONDS
2. Home Ownership Funding 2 8.1%
PREFERRED STOCK
3. Fannie Mae 7%, 4/1/30 7.1%
AGENCY MORTGAGE-BACKED SECURITY
4. Fannie Mae 7.50%, 11/1/29 6.4%
AGENCY MORTGAGE-BACKED SECURITY
5. Fannie Mae 6.50%, 7/1/29 6.3%
AGENCY MORTGAGE-BACKED SECURITY
6. Fannie Mae 7.50%, 11/1/29 4.8%
AGENCY MORTGAGE-BACKED SECURITY
7. Fannie Mae 8%, 8/1/30 4.5%
AGENCY MORTGAGE-BACKED SECURITY
8. Fannie Mae 6%, 10/1/14 3.9%
AGENCY MORTGAGE-BACKED SECURITY
9. Green Tree Financial Corp. 3.9%
ASSET-BACKED SECURITY
10. Fannie Mae 7.50%, 9/1/30 3.6%
AGENCY MORTGAGE-BACKED SECURITY
</TABLE>
INVESTMENTS AT OCTOBER 31, 2000
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--11.0%
U.S. TREASURY BONDS--11.0%
U.S. Treasury Bonds 8.50%, 2/15/20...... AAA $ 4,200 $ 5,381,477
U.S. Treasury Bonds 8.75%, 8/15/20...... AAA 6,550 8,606,182
------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES
(IDENTIFIED COST $13,531,582) 13,987,659
------------------------------------------------------------------------------
AGENCY MORTGAGE-BACKED SECURITIES--49.2%
Fannie Mae 10%, 5/25/04................. AAA 762 780,050
Fannie Mae 6.50%, 7/1/14................ AAA 3,787 3,710,844
Fannie Mae 6%, 10/1/14.................. AAA 5,202 5,008,891
Fannie Mae 6.75%, 5/25/19............... AAA 1,000 987,750
Fannie Mae 6.75%, 6/25/21............... AAA 1,000 988,430
Fannie Mae 6%, 5/1/29................... AAA 2,820 2,644,604
Fannie Mae 6.50%, 7/1/29................ AAA 8,389 8,063,755
Fannie Mae 7.50%, 11/1/29............... AAA 6,145 6,135,358
Fannie Mae 7.50%, 11/1/29............... AAA 8,220 8,207,042
Fannie Mae 7%, 3/1/30................... AAA 1,584 1,552,860
Fannie Mae 7%, 4/1/30................... AAA 9,247 9,064,539
Fannie Mae 6.50%, 4/1/30................ AAA 2,931 2,817,900
Fannie Mae 6.50%, 5/1/30................ AAA 195 187,911
Fannie Mae 8%, 8/1/30................... AAA 5,645 5,714,042
Fannie Mae 7.50%, 9/1/30................ AAA 4,550 4,542,745
GNMA 8.50%, '01-'22..................... AAA 124 127,325
GNMA 8%, 9/15/05........................ AAA 68 68,602
GNMA 8%, 9/15/06........................ AAA 9 8,963
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
GNMA 6.50%, 9/15/28..................... AAA $ 2,299 $ 2,220,127
------------------------------------------------------------------------------
TOTAL AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $62,117,779) 62,831,738
------------------------------------------------------------------------------
MUNICIPAL BONDS--1.5%
ILLINOIS--0.8%
Chicago Public Building Commission
Special Obligation Taxable 6.65%,
11/1/01(c).............................. AAA 1,000 1,000,250
MASSACHUSETTS--0.7%
Massachusetts Port Authority Revenue
Taxable Series C 6.35%, 7/1/06.......... AA- 1,000 969,690
------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $2,005,032) 1,969,940
------------------------------------------------------------------------------
ASSET-BACKED SECURITIES--12.4%
Citibank Credit Card Master Trust I
98-6, Class A 5.85%, 4/10/03............ AAA 3,500 3,483,526
Green Tree Financial Corporation 1998-3,
A5 6.22%, 3/1/30........................ AAA 5,000 4,917,150
PECO Energy Transition Trust 99-A, A6
6.05%, 3/1/09........................... AAA 4,000 3,826,640
</TABLE>
See Notes to Financial Statements 5
<PAGE>
Phoenix-Duff & Phelps Core Bond Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
Premier Auto Trust 99-1, A4 5.82%,
10/8/03................................. AAA $ 3,590 $ 3,542,253
------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $15,599,214) 15,769,569
------------------------------------------------------------------------------
CORPORATE BONDS--8.9%
AUTOMOBILES--1.0%
General Motors Corp. 6.75%, 5/1/28...... A 1,400 1,216,600
BANKS (MONEY CENTER)--2.2%
Citicorp Capital I 7.933%, 2/15/27...... A 3,000 2,802,147
CHEMICALS--1.0%
Du Pont (E.I.) de Nemours & Co. 6.5%
1/15/28................................. AA- 1,400 1,222,355
COMMUNICATIONS EQUIPMENT--2.0%
Lucent Technologies, Inc. 5.50%
11/15/08................................ A 3,000 2,536,272
COMPUTERS (HARDWARE)--1.0%
International Business Machines Corp.
6.5%, 1/15/28........................... A+ 1,500 1,322,184
INVESTMENT BANKING/BROKERAGE--1.7%
Merrill Lynch & Co. 6.50%, 7/15/18...... AA- 2,500 2,205,300
------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $11,632,615) 11,304,858
------------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED
SECURITIES--7.8%
First Union Lehman Brothers Commercial
Mortgage 97-C1, A3 7.38%, 4/18/07....... Aaa(d) 2,500 2,543,213
J.P. Morgan Commercial Mortgage Finance
Corp. 97-C5, A2 7.069%, 9/15/29......... AAA 3,000 3,005,687
Merrill Lynch Mortgage Investors, Inc.
96-C2, A3 6.96%, 11/21/28............... AAA 3,000 2,988,390
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
Morgan Stanley Capital I, 98-WF1, A2
6.55%, 12/15/07......................... AAA $ 1,500 $ 1,463,086
------------------------------------------------------------------------------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $9,906,105) 10,000,376
------------------------------------------------------------------------------
<CAPTION>
SHARES
--------
PREFERRED STOCKS--8.1%
<S> <C> <C> <C>
AGENCY NON MORTGAGE-BACKED SECURITIES--8.1%
Home Ownership Funding 2, Step-down Pfd.
144A 13.338%(b)(e)...................... 13,522 10,284,833
------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $10,772,993) 10,284,833
------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--98.9%
(IDENTIFIED COST $125,565,320) 126,148,973
------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS--0.4%
MONEY MARKET MUTUAL FUNDS--0.4%
State Street Global Advisors Seven Seas
Money Market Fund (6.28% seven day
effective yield)........................ 544,970 544,970
------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $544,970) 544,970
------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--99.3%
(IDENTIFIED COST $126,110,290) 126,693,943(a)
Cash and receivables, less liabilities--0.7% 899,985
------------
NET ASSETS--100.0% $127,593,928
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $1,542,665 and gross
depreciation of $3,717,611 for federal income tax purposes. At October 31,
2000, the aggregate cost of securities for federal income tax purposes was
$128,868,889.
(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,
2000, these securities amounted to a value of $10,284,833 or 8.1% of net
assets.
(c) This bond is fully defeased by U.S. Government Treasury Obligations.
(d) As rated by Moody's, Fitch or Duff & Phelps.
(e) Variable or step coupon security; rate shown reflects the current dividend
rate.
6 See Notes to Financial Statements
<PAGE>
Phoenix-Duff & Phelps Core Bond Fund
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $126,110,290) $126,693,943
Short-term investments held as collateral for loaned
securities 551,050
Receivables
Investment securities sold 2,541,412
Interest 1,001,402
Fund shares sold 539,870
Prepaid expenses 1,354
------------
Total assets 131,329,031
------------
LIABILITIES
Payables
Collateral on securities loaned 551,050
Investment securities purchased 2,495,465
Fund shares repurchased 458,422
Transfer agent fee 60,227
Investment advisory fee 49,185
Distribution fee 32,738
Financial agent fee 11,420
Trustees' fee 7,927
Accrued expenses 68,669
------------
Total liabilities 3,735,103
------------
NET ASSETS $127,593,928
============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $149,975,263
Accumulated net realized loss (22,964,988)
Net unrealized appreciation 583,653
------------
NET ASSETS $127,593,928
============
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $119,734,411) 13,508,308
Net asset value per share $8.86
Offering price per share $8.86/(1-4.75%) $9.30
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $7,633,214) 864,957
Net asset value and offering price per share $8.82
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $226,303) 25,614
Net asset value and offering price per share $8.84
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 9,012,264
Dividends 993,326
Security lending 12,694
-----------
Total investment income 10,018,284
-----------
EXPENSES
Investment advisory fee 628,281
Distribution fee, Class A 326,304
Distribution fee, Class B 88,937
Distribution fee, Class C 2,025
Financial agent fee 152,175
Transfer agent 332,828
Printing 56,025
Professional 33,688
Registration 25,107
Trustees 24,500
Custodian 17,572
Miscellaneous 11,472
-----------
Total expenses 1,698,914
-----------
NET INVESTMENT INCOME 8,319,370
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (7,503,206)
Net change in unrealized appreciation (depreciation) on
investments 5,596,263
-----------
NET LOSS ON INVESTMENTS (1,906,943)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 6,412,427
===========
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Phoenix-Duff & Phelps Core Bond Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/00 10/31/99
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 8,319,370 $ 9,851,758
Net realized gain (loss) (7,503,206) (6,568,044)
Net change in unrealized appreciation
(depreciation) 5,596,263 (7,313,523)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 6,412,427 (4,029,809)
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (8,117,497) (9,689,868)
Net investment income, Class B (469,140) (665,018)
Net investment income, Class C (11,835) (279)
In excess of net investment income,
Class A (808,881) (761,865)
In excess of net investment income,
Class B (46,748) (52,287)
In excess of net investment income,
Class C (1,179) (22)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (9,455,280) (11,169,339)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(9,588,199 and 5,788,523 shares,
respectively) 84,581,634 54,202,911
Net asset value of shares issued from
reinvestment of distributions
(575,152 and 655,169 shares,
respectively) 5,065,820 6,141,277
Cost of shares repurchased (12,687,945
and 8,786,721 shares, respectively) (112,003,058) (81,913,552)
------------ ------------
Total (22,355,604) (21,569,364)
------------ ------------
CLASS B
Proceeds from sales of shares (317,817
and 657,595 shares, respectively) 2,794,067 6,129,389
Net asset value of shares issued from
reinvestment of distributions
(34,346 and 38,674 shares,
respectively) 300,778 358,715
Cost of shares repurchased (795,578
and 709,025 shares, respectively) (6,993,251) (6,589,226)
------------ ------------
Total (3,898,406) (101,122)
------------ ------------
CLASS C
Proceeds from sales of shares (57,432
and 11,157 shares, respectively) 509,927 100,080
Net asset value of shares issued from
reinvestment of distributions
(1,317 and 34 shares, respectively) 11,545 301
Cost of shares repurchased (44,326 and
0 shares, respectively) (391,701) --
------------ ------------
Total 129,771 100,381
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (26,124,239) (21,570,105)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (29,167,092) (36,769,253)
NET ASSETS
Beginning of period 156,761,020 193,530,273
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$0 AND $279,102, RESPECTIVELY] $127,593,928 $156,761,020
============ ============
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Phoenix-Duff & Phelps Core Bond Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------
YEAR ENDED OCTOBER 31
-----------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.04 $ 9.83 $ 9.66 $ 9.47 $ 9.60
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.59 0.59 0.59 0.55 0.52
Net realized and unrealized gain (loss) (0.16) (0.78) 0.18 0.17 (0.15)
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.43 (0.19) 0.77 0.72 0.37
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.55) (0.56) (0.57) (0.53) (0.50)
In excess of net investment income (0.06) (0.04) (0.03) -- --
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (0.61) (0.60) (0.60) (0.53) (0.50)
--------- --------- --------- --------- ---------
Change in net asset value (0.18) (0.79) 0.17 0.19 (0.13)
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 8.86 $ 9.04 $ 9.83 $ 9.66 $ 9.47
========= ========= ========= ========= =========
Total return(1) 4.98% (1.97)% 8.16% 7.85% 4.05%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $119,734 $144,923 $180,628 $182,250 $208,552
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.17% 1.04% 1.00% 0.98% 1.03%
Net investment income 6.01% 5.62% 5.46% 5.63% 5.55%
Portfolio turnover rate 146% 112% 290% 377% 379%
</TABLE>
<TABLE>
<CAPTION>
CLASS B CLASS C
--------------------------------------------------------- ---------------------
FROM
INCEPTION
YEAR ENDED OCTOBER 31 YEAR 10/12/99
--------------------------------------------------------- ENDED TO
2000 1999 1998 1997 1996 10/31/00 10/31/99
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.97 $ 9.77 $ 9.60 $ 9.45 $ 9.58 $ 8.99 $ 8.96
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.50 0.51 0.52 0.47 0.44 0.48 0.03
Net realized and unrealized gain (loss) (0.14) (0.78) 0.18 0.17 (0.14) (0.11) 0.03
--------- --------- --------- --------- --------- ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.36 (0.27) 0.70 0.64 0.30 0.37 0.06
--------- --------- --------- --------- --------- ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.46) (0.49) (0.51) (0.49) (0.43) (0.47) (0.03)
In excess of net investment income (0.05) (0.04) (0.02) -- -- (0.05) --
--------- --------- --------- --------- --------- ------ ------
TOTAL DISTRIBUTIONS (0.51) (0.53) (0.53) (0.49) (0.43) (0.52) (0.03)
--------- --------- --------- --------- --------- ------ ------
Change in net asset value (0.15) (0.80) 0.17 0.15 (0.13) (0.15) 0.03
--------- --------- --------- --------- --------- ------ ------
NET ASSET VALUE, END OF PERIOD $ 8.82 $ 8.97 $ 9.77 $ 9.60 $ 9.45 $ 8.84 $ 8.99
========= ========= ========= ========= ========= ====== ======
Total return(1) 4.21% (2.77)% 7.48% 6.94% 3.39% 4.30% 0.53%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $7,633 $11,737 $12,902 $5,321 $4,875 $226 $101
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.91% 1.79% 1.75% 1.71% 1.78% 1.91% 1.37%(2)
Net investment income 5.25% 4.89% 4.74% 4.91% 4.79% 5.31% 4.97%(2)
Portfolio turnover rate 146% 112% 290% 377% 379% 146% 112%
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized.
(3) Not annualized.
See Notes to Financial Statements 9
<PAGE>
PHOENIX-ENGEMANN AGGRESSIVE GROWTH FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGERS, JIM CHEN, CFA, AND NED BRINES,
CFA
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Fund is appropriate for aggressive long-term investors willing to assume
above-average risk in return for above-average capital growth potential. The
Fund may invest in smaller capitalization and private companies, and investors
should note that small-company investing involves added risks, including greater
price volatility, less liquidity, and increased competitive threat.
Q: HOW HAS THE FUND PERFORMED OVER THE LAST 12 MONTHS?
A: For the fiscal year ended October 31, 2000, Class A shares rose 42.90% and
Class B shares were up 41.89% compared with a return of 16.16% for the Russell
2000 Growth Index, 31.53% for the S&P MidCap 400 Index and 6.05% for the S&P 500
Index.(1) Fund performance cited is as of the most recent reporting period and
may be more or less than the figures shown. More recent mutual performance can
be found at www.phoenixinvestments.com. All performance figures assume
reinvestment of distributions and exclude the effect of sales charges.
Q: WHAT'S BEEN THE PRIMARY REASON BEHIND YOUR EXCELLENT RESULTS?
A: Despite solid outperformance relative to the various market indices, the
theme this year was volatility. The technology sector remains the primary driver
of our performance and its representation in the portfolio increased throughout
the year as we took advantage of market volatility and added to our favorite
names. We decreased our exposure in the financial and retailing sectors given
our concerns about the direction of interest rates and the potential impact on
earnings growth. During the summer months we began to build positions in the
energy and health-care sectors, which positively contributed to our performance.
We particularly liked the accelerating earnings growth prospects of our energy
holdings due to the favorable outlook on natural gas prices. While we maintained
higher-than-normal cash balances, it was insufficient to insulate the portfolio
from the extreme volatility in the Nasdaq(2).
The top 10 contributors to our performance during the past 12 months were:
BEA Systems, Ciena Corporation, Juniper Networks, SDL, Inc., Applied Micro
Circuits, Ariba, Inc., Brocade Communications, Veritas Software, Extreme
Networks, and Dura Pharmaceuticals (acquired by Elan Corporation).
Q: WHAT IS YOUR OUTLOOK FOR THE TECHNOLOGY SECTOR GOING FORWARD?
A: We remain very bullish about the longer-term growth prospects for the
technology sector; we believe we are in the early innings of the information
revolution. However, we are cautious about the near term due to slowing growth.
The macroeconomy is clearly slowing, and the deceleration will likely have some
negative impact on many subsectors within technology. As a result, we have
reduced our overall technology exposure and de-emphasized the more cyclical
areas, such as semiconductors and semiconductor equipment. We remain very
positive on subsectors like storage and Internet infrastructure hardware and
software.
NOVEMBER 22, 2000
(1) THE RUSSELL 2000 GROWTH INDEX MEASURES SMALL-CAP GROWTH-ORIENTED STOCK
TOTAL-RETURN PERFORMANCE. THE S&P MIDCAP 400 INDEX MEASURES MID-CAP STOCK
TOTAL-RETURN PERFORMANCE. THE S&P 500 INDEX MEASURES LARGE-CAP STOCK
TOTAL-RETURN PERFORMANCE.
(2) THE NASDAQ INDEX MEASURES TECHNOLOGY-ORIENTED STOCK TOTAL-RETURN
PERFORMANCE.
THE INDICES ARE UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT.
10
<PAGE>
Phoenix-Engemann Aggressive Growth
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 10/31/00
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR 5 YEARS 10 YEARS TO 10/31/00 DATE
------ ------- -------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Class A Shares at NAV(2) 42.90% 29.25% 23.68% -- --
Class A Shares at POP(3) 34.68 27.73 22.95 -- --
Class B Shares at NAV(2) 41.89 28.29 -- 28.09% 7/21/94
Class B Shares with CDSC(4) 37.89 28.29 -- 28.09 7/21/94
Russell 2000 Growth Index(6) 16.16 11.65 15.95 13.60 7/21/94
S&P 500 Index(7) 6.05 21.75 19.48 22.38 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 5.75% 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.
GROWTH OF $10,000 PERIODS ENDING 10/31
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PHOENIX-ENGEMANN
AGGRESSIVE GROWTH RUSSELL 2000 S&P
FUND CLASS A(5) GROWTH INDEX(6) 500
INDEX(7)
<S> <C> <C> <C>
10/90 $ 9,425 $ 10,000 $ 10,000
10/91 $ 13,194 $ 16,653 $ 13,351
10/92 $ 14,101 $ 16,593 $ 14,680
10/93 $ 16,132 $ 21,185 $ 16,867
10/94 $ 16,192 $ 20,991 $ 17,530
10/95 $ 21,882 $ 25,313 $ 22,161
10/96 $ 25,696 $ 28,686 $ 27,523
10/97 $ 30,749 $ 34,759 $ 36,421
10/98 $ 30,866 $ 29,247 $ 44,439
10/99 $ 55,231 $ 37,810 $ 55,899
10/00 $ 78,925 $ 43,922 $ 59,281
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
10/31/90 in Class A shares and reflects the maximum sales charge of 5.75% 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 10/31/00
As a percentage of equity holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 70%
Health-Care 8%
Capital Goods 7%
Utilities 4%
Energy 4%
Communication Services 2%
Financials 2%
Other 3%
</TABLE>
11
<PAGE>
Phoenix-Engemann Aggressive Growth Fund
TEN LARGEST EQUITY HOLDINGS AT OCTOBER 31, 2000 (AS A PERCENTAGE OF TOTAL NET
ASSETS)
<TABLE>
<C> <S> <C>
1. BEA Systems, Inc. 8.4%
DESIGNS COMPUTER SOFTWARE
2. VERITAS Software Corp. 4.1%
DEVELOPS STORAGE MANAGEMENT SOFTWARE
3. Brocade Communications Systems, Inc. 3.3%
PROVIDER OF FIBER CHANNEL SWITCHING SOLUTIONS
4. JDS Uniphase Corp. 3.0%
PROVIDER OF ADVANCED FIBER OPTIC COMPONENTS
5. SDL, Inc. 2.9%
MANUFACTURER OF SEMICONDUCTORS AND CIRCUITS
6. Xilinx, Inc. 2.6%
SUPPLIER OF SEMICONDUCTORS
7. Network Appliance, Inc. 2.6%
MANUFACTURER OF NETWORK DATA STORAGE DEVICES
8. PMC-Sierra, Inc. 2.5%
SUPPLIER OF INTEGRATED CIRCUITS
9. Jabil Circuit, Inc. 2.3%
MANUFACTURER OF CIRCUIT BOARD ASSEMBLIES
10. Applied Micro Circuits Corp. 2.2%
MANUFACTURER OF INTEGRATED CIRCUITS
</TABLE>
INVESTMENTS AT OCTOBER 31, 2000
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------
<S> <C> <C> <C>
COMMON STOCKS--85.0%
BIOTECHNOLOGY--2.5%
COR Therapeutics, Inc.(b)............... 130,000 $ 7,345,000
Ciphergen Biosystems, Inc.(b)........... 90,000 2,790,000
Idec Pharmaceuticals Corp.(b)........... 35,000 6,864,375
------------
16,999,375
------------
BROADCASTING (TELEVISION, RADIO & CABLE)--0.9%
Univision Communications, Inc. Class
A(b).................................... 160,000 6,120,000
COMMUNICATIONS EQUIPMENT--9.7%
Avanex Corp.(b)......................... 30,000 3,046,875
CIENA Corp.(b).......................... 140,000 14,717,500
Corvis Corp.(b)......................... 60,000 3,937,500
Cosinus Investment Fund II LLC(b)(c).... (e) 1,000,000
JDS Uniphase Corp.(b)................... 250,000 20,343,750
McData Corp. Class B(b)................. 60,000 5,001,562
Oni Systems Corp.(b).................... 89,000 7,214,562
Sycamore Networks, Inc.(b).............. 40,000 2,530,000
Tellabs, Inc.(b)........................ 100,000 4,993,750
Terayon Communication Systems,
Inc.(b)................................. 130,000 2,908,750
Vina Technologies, Inc.(b).............. 80,000 710,000
------------
66,404,249
------------
COMPUTERS (HARDWARE)--8.2%
Brocade Communications Systems,
Inc.(b)................................. 100,000 22,737,500
Cosine Communications, Inc.(b).......... 50,000 1,653,125
Extreme Networks, Inc.(b)............... 120,000 9,952,500
JNI Corp.(b)............................ 80,000 7,125,000
<CAPTION>
SHARES VALUE
---------- ------------
<S> <C> <C> <C>
COMPUTERS (HARDWARE)--CONTINUED
Juniper Networks, Inc.(b)............... 75,000 $ 14,625,000
------------
56,093,125
------------
COMPUTERS (NETWORKING)--2.6%
Network Appliance, Inc.(b).............. 150,000 17,850,000
COMPUTERS (SOFTWARE & SERVICES)--20.7%
Agile Software Corp.(b)................. 60,000 4,522,500
Ariba, Inc.(b).......................... 80,000 10,110,000
Aspsecure.Com Corp.(b)(c)............... 250,000 812,500
BEA Systems, Inc.(b).................... 800,000 57,400,000
Exodus Communications, Inc.(b).......... 160,000 5,370,000
Inktomi Corp.(b)........................ 30,000 1,903,125
Interwoven, Inc.(b)..................... 50,000 5,037,500
LivePerson, Inc.(b)..................... 400,000 925,000
PeopleSoft, Inc.(b)..................... 200,000 8,728,125
Ulticom, Inc.(b)........................ 125,000 5,968,750
VERITAS Software Corp.(b)............... 200,000 28,203,125
Vastera, Inc.(b)........................ 120,000 2,130,000
VeriSign, Inc.(b)....................... 20,000 2,640,000
i2 Technologies, Inc.(b)................ 50,000 8,500,000
------------
142,250,625
------------
ELECTRIC COMPANIES--1.3%
Constellation Energy Group, Inc.(b)..... 100,000 4,168,750
Southern Energy, Inc.(b)................ 165,000 4,496,250
------------
8,665,000
------------
ELECTRICAL EQUIPMENT--2.2%
Active Power, Inc.(b)................... 100,000 3,812,500
</TABLE>
12 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Aggressive Growth Fund
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------
<S> <C> <C> <C>
ELECTRICAL EQUIPMENT--CONTINUED
Sanmina Corp.(b)........................ 100,000 $ 11,431,250
------------
15,243,750
------------
ELECTRONICS (INSTRUMENTATION)--2.5%
Aurora Biosciences Corp.(b)............. 90,000 5,484,375
Bruker Daltonics, Inc.(b)............... 150,000 5,137,500
Illumina, Inc.(b)....................... 100,000 3,250,000
Sequenom, Inc.(b)....................... 100,000 3,237,500
------------
17,109,375
------------
ELECTRONICS (SEMICONDUCTORS)--14.2%
Analog Devices, Inc.(b)................. 125,000 8,125,000
Applied Micro Circuits Corp.(b)......... 200,000 15,275,000
Maxim Integrated Products, Inc.(b)...... 125,000 8,289,062
Micrel, Inc.(b)......................... 175,000 7,918,750
Oplink Communications, Inc.(b).......... 145,000 3,534,375
PMC-Sierra, Inc. (b).................... 100,000 16,950,000
SDL, Inc.(b)............................ 76,000 19,703,000
Xilinx, Inc.(b)......................... 250,000 18,109,375
------------
97,904,562
------------
EQUIPMENT (SEMICONDUCTORS)--1.0%
Broadcom Corp. Class A(b)............... 30,000 6,671,250
FOODS--0.3%
Charles River Laboratories
International, Inc.(b).................. 80,000 2,100,000
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.9%
Medicines Co. (The)(b).................. 200,000 6,025,000
HEALTH CARE (GENERIC AND OTHER)--2.4%
ALZA Corp.(b)........................... 150,000 12,140,625
Dura Pharmaceuticals, Inc.(b)........... 125,000 4,304,688
------------
16,445,313
------------
HEALTH CARE (LONG TERM CARE)--0.2%
Health Care & Retirement Corp.(b)....... 100,000 1,668,750
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--1.2%
PE Corp.-PE Biosystems Group(b)......... 70,000 8,190,000
HEALTH CARE (SPECIALIZED SERVICES)--0.5%
Arena Pharmaceuticals, Inc.(b).......... 100,000 3,493,750
INVESTMENT BANKING/BROKERAGE--1.5%
Lehman Brothers Holdings, Inc........... 160,000 10,320,000
MANUFACTURING (SPECIALIZED)--2.3%
Jabil Circuit, Inc.(b).................. 275,000 15,692,188
NATURAL GAS--2.6%
Coastal Corp. (The)..................... 180,000 13,578,750
<CAPTION>
SHARES VALUE
---------- ------------
<S> <C> <C> <C>
NATURAL GAS--CONTINUED
Dynegy, Inc. Class A.................... 100,000 $ 4,631,250
------------
18,210,000
------------
OIL & GAS (DRILLING & EQUIPMENT)--0.7%
Nabors Industries, Inc.(b).............. 100,000 5,090,000
OIL & GAS (EXPLORATION & PRODUCTION)--2.9%
Anadarko Petroleum Corp................. 125,000 8,006,250
Apache Corp............................. 120,000 6,637,500
Burlington Resources, Inc............... 140,000 5,040,000
------------
19,683,750
------------
SERVICES (COMMERCIAL & CONSUMER)--1.3%
Corporate Executive Board Co.
(The)(b)................................ 150,000 6,918,750
Universal Access, Inc.(b)............... 150,000 2,193,750
------------
9,112,500
------------
SERVICES (COMPUTER SYSTEMS)--0.5%
Sapient Corp.(b)........................ 100,000 3,556,250
TELECOMMUNICATIONS (LONG DISTANCE)--1.2%
Allegiance Telecom, Inc.(b)............. 107,000 3,363,813
McLeodUSA, Inc. Class A(b).............. 240,000 4,620,000
------------
7,983,813
------------
TELEPHONE--0.7%
Qwest Communications International,
Inc.(b)................................. 105,000 5,105,625
----------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $310,481,814) 583,988,250
----------------------------------------------------------------------
FOREIGN COMMON STOCKS--3.9%
COMMUNICATIONS EQUIPMENT--0.8%
Research in Motion Ltd.
(Canada)(b)(c).......................... 55,000 5,500,000
ELECTRICAL EQUIPMENT--1.5%
Flextronics International Ltd.
(Singapore)(b).......................... 236,000 8,968,000
Hydrogenics Corp. (Canada)(b)........... 93,940 1,133,151
------------
10,101,151
------------
ELECTRONICS (SEMICONDUCTORS)--1.2%
C-Mac Industries, Inc. (Canada)(b)...... 150,000 8,325,000
TELECOMMUNICATIONS (LONG DISTANCE)--0.4%
Global Crossing Ltd. (Bermuda)(b)....... 125,000 2,953,125
----------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $22,731,505) 26,879,276
----------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements 13
<PAGE>
Phoenix-Engemann Aggressive Growth Fund
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------
<S> <C> <C> <C>
PREFERRED STOCKS--0.5%
COMMUNICATIONS EQUIPMENT--0.3%
Metro Optix, Inc. Series B Pfd.(b)(c)... 176,768 $ 1,750,003
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.2%
Micro Photonix Series C Pfd.(b)(c)...... 237,518 1,499,998
----------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $3,250,003) 3,250,001
----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000)
------------ ------
<S> <C> <C> <C>
CONVERTIBLE BONDS--0.3%
COMMUNICATIONS EQUIPMENT--0.3%
Cyras Systems, Inc. 144A
4.50%, 8/15/05(d)............. NR $1,250 1,375,000
Kestrel Solutions, Inc. 144A
5.50%, 7/15/05(d)............. NR 1,000 990,000
------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS
(IDENTIFIED COST $2,250,000) 2,365,000
------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--89.7%
(IDENTIFIED COST $338,713,322) 616,482,527
------------------------------------------------------------------
SHORT-TERM OBLIGATIONS--9.5%
COMMERCIAL PAPER--9.5%
Alcoa, Inc. 6.60%, 11/1/00.... A-1 1,090 1,090,000
Koch Industries, Inc. 6.62%,
11/1/00....................... A-1+ 5,275 5,275,000
Alcoa, Inc. 6.50%, 11/2/00.... A-1 1,450 1,449,738
Exxon Imperial U.S., Inc.
6.48%, 11/2/00................ A-1+ 5,000 4,999,100
Ford Motor Credit Co. 6.49%,
11/3/00....................... A-1 2,710 2,709,023
Wal-Mart Stores, Inc. 6.55%,
11/3/00....................... A-1+ 2,405 2,404,125
American Home Products Corp.
6.48%, 11/6/00................ A-1 5,205 5,200,316
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------ ------------
<S> <C> <C> <C>
COMMERCIAL PAPER--CONTINUED
Pfizer, Inc. 6.50%, 11/8/00... A-1 $3,145 $ 3,141,025
Greenwich Funding Corp. 6.57%,
11/9/00....................... A-1+ 5,295 5,287,269
General Electric Capital Corp.
6.48%, 11/14/00............... A-1+ 1,045 1,042,555
National Rural Utilities
Cooperative Corp. 6.47%,
11/16/00...................... A-1 5,000 4,986,862
Lexington Parker Capital Co.
LLC 6.51%, 11/17/00........... A-1 3,000 2,991,320
Gannett Co., Inc. 6.49%,
11/20/00...................... A-1 3,085 3,074,433
Colgate-Palmolive Co. 6.47%,
11/27/00...................... A-1 2,785 2,771,986
Goldman Sachs Group L.P.
6.53%, 11/27/00............... A-1+ 4,000 3,981,136
Colgate-Palmolive Co. 6.48%,
11/30/00...................... A-1 3,460 3,441,939
AT&T Corp. 6.57%, 12/12/00.... A-1+ 1,740 1,726,980
AT&T Corp. 6.56%, 12/13/00.... A-1+ 2,900 2,877,805
Alcoa, Inc. 6.46%, 12/14/00... A-1 2,020 2,004,413
Kimberly-Clark Corp. 6.46%,
12/18/00...................... A-1+ 2,000 1,983,132
Special Purpose Accounts
Receivable Cooperative Corp.
6.58%, 1/4/01................. A-1 700 691,899
Ford Motor Credit Co. 6.52%,
1/8/01........................ A-1 2,000 1,975,407
------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $65,104,997) 65,105,463
------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--99.2%
(IDENTIFIED COST $403,818,319) 681,587,990(a)
Cash and receivables, less liabilities--0.8% 5,726,586
------------
NET ASSETS--100.0% $687,314,576
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $292,844,153 and gross
depreciation of $15,074,482 for federal income tax purposes. At October 31,
2000, the aggregate cost of securities for federal income tax purposes was
$403,818,319.
(b) Non-income producing.
(c) Private placement. Security valued at fair value as determined in good
faith by or under the direction of the Trustees. Security is illiquid.
(d) 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,
2000, these securities amounted to a value of $2,365,000 or 0.3% of net
assets.
(e) 5% ownership interest in Limited Liability Company.
14 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Aggressive Growth Fund
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $403,818,319) $ 681,587,990
Short-term investments held as collateral for loaned
securities 29,049,710
Cash 18,633
Receivables
Investment securities sold 7,606,085
Fund shares sold 832,382
Interest and dividends 25,935
Prepaid expenses 1,956
--------------
Total assets 719,122,691
--------------
LIABILITIES
Payables
Collateral on securities loaned 29,049,710
Investment securities purchased 1,192,009
Fund shares repurchased 699,727
Investment advisory fee 424,701
Distribution fee 193,209
Transfer agent fee 109,756
Financial agent fee 32,200
Trustees' fee 10,208
Accrued expenses 96,595
--------------
Total liabilities 31,808,115
--------------
NET ASSETS $ 687,314,576
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 364,487,448
Accumulated net realized gain 45,057,457
Net unrealized appreciation 277,769,671
--------------
NET ASSETS $ 687,314,576
==============
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $622,963,823) 19,471,524
Net asset value per share $31.99
Offering price per share $31.99/(1-5.75%) $33.94
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $64,350,753) 2,136,046
Net asset value and offering price per share $30.13
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 3,960,043
Dividends 225,710
Security lending 452,446
--------------
Total investment income 4,638,199
--------------
EXPENSES
Investment advisory fee 4,634,035
Distribution fee, Class A 1,519,882
Distribution fee, Class B 540,524
Financial agent fee 367,405
Transfer agent 574,394
Printing 100,928
Custodian 57,462
Professional 32,890
Registration 30,835
Trustees 24,500
Miscellaneous 16,792
--------------
Total expenses 7,899,647
Custodian fees paid indirectly (20,707)
--------------
Net expense 7,878,940
--------------
NET INVESTMENT LOSS (3,240,741)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 45,604,732
Net change in unrealized appreciation (depreciation) on
investments 128,911,291
--------------
NET GAIN ON INVESTMENTS 174,516,023
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 171,275,282
==============
</TABLE>
See Notes to Financial Statements 15
<PAGE>
Phoenix-Engemann Aggressive Growth Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/00 10/31/99
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (3,240,741) $ (1,493,317)
Net realized gain (loss) 45,604,732 57,892,284
Net change in unrealized appreciation
(depreciation) 128,911,291 124,594,176
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 171,275,282 180,993,143
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A (46,796,438) --
Net realized gains, Class B (3,625,625) --
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (50,422,063) --
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(9,993,900 and 7,232,280 shares,
respectively) 327,378,390 150,541,641
Net asset value of shares issued from
reinvestment of distributions
(1,457,984 and 0 shares,
respectively) 43,929,051 --
Cost of shares repurchased (7,398,322
and 8,007,207 shares, respectively) (240,837,014) (164,237,986)
------------ ------------
Total 130,470,427 (13,696,345)
------------ ------------
CLASS B
Proceeds from sales of shares
(1,337,382 and 640,281 shares,
respectively) 41,681,930 12,823,475
Net asset value of shares issued from
reinvestment of distributions
(119,475 and 0 shares, respectively) 3,410,996 --
Cost of shares repurchased (489,090
and 546,304 shares, respectively) (14,862,707) (10,666,072)
------------ ------------
Total 30,230,219 2,157,403
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS 160,700,646 (11,538,942)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS 281,553,865 169,454,201
NET ASSETS
Beginning of period 405,760,711 236,306,510
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$0 AND $0, RESPECTIVELY] $687,314,576 $405,760,711
============ ============
</TABLE>
16 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Aggressive Growth Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
Class A
--------------------------------------------------------------------
YEAR ENDED OCTOBER 31
--------------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 24.54 $ 13.72 $ 17.20 $ 16.84 $ 16.51
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.14)(2) (0.08)(2) (0.03) (0.08)(2) (0.13)(2)
Net realized and unrealized gain (loss) 10.50 10.90 0.04 2.95 2.64
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 10.36 10.82 0.01 2.87 2.51
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- -- (0.02)
Dividends from net realized gains (2.91) -- (3.46) (2.51) (2.16)
In excess of net investment income -- -- (0.03) -- --
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (2.91) -- (3.49) (2.51) (2.18)
--------- --------- --------- --------- ---------
Change in net asset value 7.45 10.82 (3.48) 0.36 0.33
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 31.99 $ 24.54 $ 13.72 $ 17.20 $ 16.84
========= ========= ========= ========= =========
Total return(1) 42.90% 78.94% 0.38% 19.67% 17.43%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $622,964 $378,427 $222,149 $246,002 $233,488
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.13%(4) 1.19%(3) 1.21% 1.20% 1.20%
Net investment income (0.43)% (0.41)% (0.18)% (0.53)% (0.81)%
Portfolio turnover rate 158% 167% 176% 518% 401%
</TABLE>
<TABLE>
<CAPTION>
Class B
--------------------------------------------------------------------
YEAR ENDED OCTOBER 31
--------------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 23.40 $ 13.18 $ 16.76 $ 16.57 $ 16.38
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.38)(2) (0.22)(2) (0.12) (0.20)(2) (0.25)(2)
Net realized and unrealized gain (loss) 10.02 10.44 0.03 2.90 2.60
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 9.64 10.22 (0.09) 2.70 2.35
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net realized gains (2.91) -- (3.46) (2.51) (2.16)
In excess of net investment income -- -- (0.03) -- --
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (2.91) -- (3.49) (2.51) (2.16)
--------- --------- --------- --------- ---------
Change in net asset value 6.73 10.22 (3.58) 0.19 0.19
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 30.13 $ 23.40 $ 13.18 $ 16.76 $ 16.57
========= ========= ========= ========= =========
Total return(1) 41.89% 77.54% (0.28)% 18.70% 16.52%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $64,351 $27,334 $14,157 $13,611 $10,466
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.88%(4) 1.94%(3) 1.96% 1.96% 1.95%
Net investment income (1.20)% (1.16)% (0.93)% (1.28)% (1.57)%
Portfolio turnover rate 158% 167% 176% 518% 401%
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Computed using average shares outstanding.
(3) 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.
(4) 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 17
<PAGE>
PHOENIX-ENGEMANN CAPITAL GROWTH FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGERS, JIM CHEN, CFA, AND NED BRINES,
CFA
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Fund's investment objective is 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, 2000?
A: Class A shares returned 10.43% and Class B shares earned 9.61% compared with
a return of 6.05% for the S&P 500 Index.(1) All performance figures assume
reinvestment of dividends and exclude the effect of sales charges.
Q: WHAT WERE THE PRIMARY REASONS THE FUND OUTPERFORMED RELATIVE TO THE S&P 500
INDEX?
A: A large part of the outperformance was due to our increased investment in the
technology sector. We raised our technology exposure to the 51% range and
included several faster growing technology companies. Today, six of the largest
10 holdings in the fund are in the technology sector -- EMC, BEA Systems, Sun
Microsystems, Cisco, Oracle, and VERITAS Software.
Q: WHAT OTHER CHANGES DID YOU MAKE TO THE PORTFOLIO THROUGHOUT THE YEAR?
A: Over the last 12 months, we reduced our exposure in the financial, consumer
staples, and consumer cyclical sectors, while increasing investment in the
energy and utilities sectors. Our move away from the financial and consumer area
was principally due to our concerns about the prospect of higher interest rates
and the impact on consumer spending. We raised our exposure to the energy sector
due to accelerating earnings growth prospects of companies that are positioned
to benefit from increasing natural gas prices.
Q: HOW HAVE YOU POSITIONED THE FUND FOR THE FUTURE?
A: We have positioned the overall portfolio 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, software, and semiconductor
areas are causing a similar cataclysmic transformation. 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 22, 2000
(1) THE S&P 500 INDEX MEASURES LARGE-CAP STOCK TOTAL-RETURN PERFORMANCE. THE
INDEX IS UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT.
18
<PAGE>
Phoenix-Engemann Capital Growth Fund
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 10/31/00
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR 5 YEARS 10 YEARS TO 10/31/00 DATE
------ ------- -------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Class A Shares at NAV(2) 10.43% 18.49% 16.06% -- --
Class A Shares at POP(3) 4.08 17.10 15.38 -- --
Class B Shares at NAV(2) 9.61 17.61 -- 18.18% 7/15/94
Class B Shares with CDSC(4) 5.72 17.61 -- 18.18 7/15/94
S&P 500 Index(6) 6.05 21.75 19.48 22.24 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 5.75% 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.
GROWTH OF $10,000 PERIODS ENDING 10/31
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PHOENIX-ENGEMANN
CAPITAL GROWTH S&P
FUND CLASS A(5) 500
INDEX(6)
<S> <C> <C>
10/90 $ 9,425 $ 10,000
10/91 $ 12,344 $ 13,351
10/92 $ 13,202 $ 14,680
10/93 $ 14,152 $ 16,867
10/94 $ 14,444 $ 17,530
10/95 $ 17,897 $ 22,161
10/96 $ 20,822 $ 27,523
10/97 $ 25,987 $ 36,421
10/98 $ 29,173 $ 44,439
10/99 $ 37,854 $ 55,899
10/00 $ 41,803 $ 59,281
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
10/31/90 in Class A shares and reflects the maximum sales charge of 5.75% 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 10/31/00
As a percentage of equity holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 51%
Health-Care 11%
Capital Goods 10%
Financials 9%
Utilities 5%
Energy 4%
Consumer Staples 3%
Other 7%
</TABLE>
19
<PAGE>
Phoenix-Engemann Capital Growth Fund
TEN LARGEST HOLDINGS AT OCTOBER 31, 2000 (AS A PERCENTAGE OF TOTAL NET ASSETS)
<TABLE>
<C> <S> <C>
1. EMC Corp. 4.9%
MANUFACTURER OF COMPUTER STORAGE PRODUCTS
2. BEA Systems, Inc. 4.7%
DESIGNS COMPUTER SOFTWARE
3. Pfizer, Inc. 4.1%
CONSUMER HEALTH CARE AND SPECIALTY CHEMICAL MANUFACTURER
4. Tyco International Ltd. 3.9%
DIVERSIFIED MANUFACTURING AND SERVICE COMPANY
5. Sun Microsystems, Inc. 3.8%
MARKETS NETWORKED WORKSTATIONS
6. Citigroup, Inc. 3.6%
DIVERSIFIED FINANCIAL SERVICES COMPANY
7. Cisco Systems, Inc. 3.5%
MANUFACTURES COMPUTER NETWORK PRODUCTS
8. Oracle Corp. 3.0%
MARKETS DATABASE MANAGEMENT SOFTWARE
9. VERITAS Software Corp. 2.9%
DEVELOPS STORAGE MANAGEMENT SOFTWARE
10. General Electric Co. 2.8%
DEVELOPS, MANUFACTURES AND MARKETS A VARIETY OF
CONSUMER AND INDUSTRIAL PRODUCTS
</TABLE>
INVESTMENTS AT OCTOBER 31, 2000
<TABLE>
<CAPTION>
SHARES VALUE
---------- --------------
<S> <C> <C> <C>
COMMON STOCKS--87.2%
BANKS (MAJOR REGIONAL)--0.8%
Wells Fargo & Co........................ 500,000 $ 23,156,250
BIOTECHNOLOGY--0.2%
Amgen, Inc.(b).......................... 100,000 5,793,750
BROADCASTING (TELEVISION, RADIO & CABLE)--0.6%
AT&T Corp.- Liberty Media Corp. Class
A(b).................................... 1,020,000 18,360,000
COMMUNICATIONS EQUIPMENT--3.0%
CIENA Corp.(b).......................... 250,000 26,281,250
Corvis Corp.(b)......................... 200,000 13,125,000
JDS Uniphase Corp.(b)................... 275,000 22,378,125
Sycamore Networks, Inc.(b).............. 60,000 3,795,000
Tellabs, Inc.(b)........................ 450,000 22,471,875
--------------
88,051,250
--------------
COMPUTERS (HARDWARE)--5.4%
Brocade Communications Systems,
Inc.(b)................................. 200,000 45,475,000
Sun Microsystems, Inc.(b)............... 1,000,000 110,875,000
--------------
156,350,000
--------------
COMPUTERS (NETWORKING)--3.5%
Cisco Systems, Inc.(b).................. 1,900,000 102,362,500
COMPUTERS (PERIPHERALS)--4.9%
EMC Corp.(b)............................ 1,600,000 142,500,000
<CAPTION>
SHARES VALUE
---------- --------------
<S> <C> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)--17.9%
America Online, Inc.(b)................. 700,000 $ 35,301,000
Ariba, Inc.(b).......................... 225,000 28,434,375
BEA Systems, Inc.(b).................... 1,900,000 136,325,000
Exodus Communications, Inc.(b).......... 220,000 7,383,750
i2 Technologies, Inc.(b)................ 350,000 59,500,000
Oracle Corp.(b)......................... 2,600,000 85,800,000
PeopleSoft, Inc.(b)..................... 650,000 28,366,406
Siebel Systems, Inc. (b)................ 500,000 52,468,750
VERITAS Software Corp.(b)............... 600,000 84,609,375
--------------
518,188,656
--------------
ELECTRIC COMPANIES--1.2%
Constellation Energy Group, Inc.(b)..... 500,000 20,843,750
Southern Energy, Inc.(b)................ 560,000 15,260,000
--------------
36,103,750
--------------
ELECTRICAL EQUIPMENT--3.8%
General Electric Co..................... 1,500,000 82,218,750
Sanmina Corp.(b)........................ 250,000 28,578,125
--------------
110,796,875
--------------
ELECTRONICS (SEMICONDUCTORS)--11.3%
Analog Devices, Inc.(b)................. 450,000 29,250,000
Applied Micro Circuits Corp.(b)......... 620,000 47,352,500
Celestica, Inc.(b)...................... 350,000 25,156,250
Maxim Integrated Products, Inc.(b)...... 450,000 29,840,625
PMC-Sierra, Inc. (b).................... 310,000 52,545,000
SDL, Inc.(b)............................ 140,000 36,295,000
</TABLE>
20 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Capital Growth Fund
<TABLE>
<CAPTION>
SHARES VALUE
---------- --------------
<S> <C> <C> <C>
ELECTRONICS (SEMICONDUCTORS)--CONTINUED
Texas Instruments, Inc.................. 850,000 $ 41,703,125
Xilinx, Inc.(b)......................... 900,000 65,193,750
--------------
327,336,250
--------------
ENTERTAINMENT--1.5%
Time Warner, Inc........................ 320,000 24,291,200
Viacom, Inc. Class B(b)................. 350,000 19,906,250
--------------
44,197,450
--------------
FINANCIAL (DIVERSIFIED)--6.1%
American Express Co..................... 750,000 45,000,000
Citigroup, Inc.......................... 2,000,000 105,250,000
Freddie Mac............................. 200,000 12,000,000
Morgan Stanley Dean Witter & Co......... 170,000 13,653,125
--------------
175,903,125
--------------
HEALTH CARE (DIVERSIFIED)--1.4%
Bristol-Myers Squibb Co................. 350,000 21,328,125
Johnson & Johnson....................... 200,000 18,425,000
--------------
39,753,125
--------------
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--7.3%
Genentech, Inc.(b)...................... 400,000 33,000,000
Merck & Co., Inc........................ 500,000 44,968,750
Pfizer, Inc............................. 2,750,000 118,765,625
Pharmacia Corp.......................... 250,000 13,750,000
--------------
210,484,375
--------------
HEALTH CARE (GENERIC AND OTHER)--0.6%
ALZA Corp.(b)........................... 200,000 16,187,500
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--1.3%
Medtronic, Inc.......................... 700,000 38,018,750
INVESTMENT BANKING/BROKERAGE--1.3%
Goldman Sachs Group, Inc. (The)......... 90,000 8,983,125
Merrill Lynch & Co., Inc................ 400,000 28,000,000
--------------
36,983,125
--------------
MANUFACTURING (DIVERSIFIED)--0.5%
United Technologies Corp................ 200,000 13,962,500
MANUFACTURING (SPECIALIZED)--0.6%
Jabil Circuit, Inc.(b).................. 300,000 17,118,750
<CAPTION>
SHARES VALUE
---------- --------------
<S> <C> <C> <C>
NATURAL GAS--3.8%
Coastal Corp. (The)..................... 900,000 $ 67,893,750
Enron Corp.............................. 500,000 41,031,250
--------------
108,925,000
--------------
OIL & GAS (DRILLING & EQUIPMENT)--1.5%
Halliburton Co.......................... 400,000 14,825,000
Schlumberger Ltd........................ 375,000 28,546,875
--------------
43,371,875
--------------
OIL & GAS (EXPLORATION & PRODUCTION)--2.7%
Anadarko Petroleum Corp................. 300,000 19,215,000
Burlington Resources, Inc............... 700,000 25,200,000
Unocal Corp............................. 1,000,000 34,125,000
--------------
78,540,000
--------------
RETAIL (BUILDING SUPPLIES)--0.8%
Home Depot, Inc. (The).................. 550,000 23,650,000
RETAIL (DEPARTMENT STORES)--0.4%
Kohl's Corp.(b)......................... 200,000 10,837,500
RETAIL (DRUG STORES)--0.8%
Walgreen Co............................. 500,000 22,812,500
RETAIL (GENERAL MERCHANDISE)--1.3%
Wal-Mart Stores, Inc.................... 840,000 38,115,000
TELECOMMUNICATIONS (LONG DISTANCE)--0.5%
WorldCom, Inc.(b)....................... 600,000 14,250,000
TELEPHONE--2.2%
Qwest Communications International,
Inc.(b)................................. 800,000 38,900,000
SBC Communications, Inc................. 425,000 24,517,188
--------------
63,417,188
--------------
------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $1,581,853,913) 2,525,527,044
------------------------------------------------------------------------
FOREIGN COMMON STOCKS--7.6%
COMMUNICATIONS EQUIPMENT--1.8%
Nokia Oyj ADR (Finland)................. 668,000 28,557,000
Nortel Networks Corp. (Canada).......... 500,000 22,750,000
--------------
51,307,000
--------------
ELECTRICAL EQUIPMENT--1.1%
Flextronics International Ltd.
(Singapore)(b).......................... 830,000 31,540,000
</TABLE>
See Notes to Financial Statements 21
<PAGE>
Phoenix-Engemann Capital Growth Fund
<TABLE>
<CAPTION>
SHARES VALUE
---------- --------------
<S> <C> <C> <C>
ELECTRONICS (SEMICONDUCTORS)--0.7%
C-Mac Industries, Inc. (Canada)(b)...... 350,000 $ 19,425,000
MANUFACTURING (DIVERSIFIED)--3.9%
Tyco International Ltd. (Bermuda)....... 2,000,000 113,375,000
TELECOMMUNICATIONS (LONG DISTANCE)--0.1%
Global Crossing Ltd. (Bermuda)(b)....... 200,000 4,725,000
------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $173,723,920) 220,372,000
------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--94.8%
(IDENTIFIED COST $1,755,577,833) 2,745,899,044
------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000)
------------ ----------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--4.9%
COMMERCIAL PAPER--4.3%
Alcoa, Inc. 6.60%, 11/1/00.... A-1 $ 325 325,000
Bell South Capital Funding
Corp. 6.49%, 11/1/00.......... A-1+ 6,000 6,000,000
Koch Industries, Inc. 6.62%,
11/1/00....................... A-1+ 1,000 1,000,000
Ford Motor Credit Co. 6.49%
11/3/00....................... A-1 5,000 4,998,197
Special Purpose Accounts
Receivable Cooperative Corp.
6.53%, 11/3/00................ A-1+ 1,030 1,029,626
American Home Products Corp.
6.48%, 11/6/00................ A-1 1,355 1,353,780
Exxon Imperial U.S., Inc.
6.48% 11/6/00................. A-1+ 5,000 4,995,500
Campbell Soup Co. 6.50%,
11/7/00....................... A-1+ 5,000 4,994,625
Wal-Mart Stores, Inc. 6.48%,
11/7/00....................... A-1+ 3,550 3,546,166
Lexington Parker Capital Co.
LLC 6.52%, 11/8/00............ A-1 3,644 3,639,380
SBC Communications, Inc.
6.50%, 11/8/00................ A-1+ 5,000 4,993,681
Honeywell International, Inc.
6.47%, 11/9/00................ A-1 10,000 9,984,915
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ---------- --------------
<S> <C> <C> <C>
COMMERCIAL PAPER--CONTINUED
Bavaria Universal Funding
Corp. 6.52%, 11/10/00......... A-1 $ 5,000 $ 4,991,850
Gannett Co., Inc. 6.50%,
11/13/00...................... A-1 5,000 4,989,250
United Technologies Corp.
6.52%, 11/14/00............... A-1 3,225 3,217,407
AT&T Corp. 6.50%, 11/15/00.... A-1+ 2,600 2,593,696
Marsh USA, Inc. 6.52%,
11/17/00...................... A-1+ 5,000 4,985,978
General Electric Capital Corp.
6.53%, 11/22/00............... A-1+ 140 139,492
Special Purpose Accounts
Receivable Cooperative Corp.
6.50%, 11/27/00............... A-1+ 3,105 3,090,272
Colgate-Palmolive Co. 6.48%,
11/30/00...................... A-1+ 2,040 2,029,351
Lexington Parker Capital Co.
LLC 6.50%, 12/1/00............ A-1 5,000 4,971,606
International Lease Finance
Corp. 6.55%, 12/4/00.......... A-1+ 3,000 2,981,643
Campbell Soup Co. 6.52%,
12/7/00....................... A-1+ 2,100 2,087,101
United Technologies Corp.
6.47%, 12/12/00............... A-1 3,960 3,930,820
Special Purpose Accounts
Receivable Cooperative Corp.
6.58%, 1/4/01................. A-1+ 4,300 4,250,234
Receivables Capital Corp.
6.51%, 1/9/01................. A-1+ 5,000 4,937,804
National Rural Utilities
Cooperative Finance Corp.
6.51%, 1/10/01................ A-1+ 3,000 2,961,791
General Electric Capital Corp.
6.52%, 1/11/01................ A-1+ 1,725 1,702,954
AT&T Corp. 6.53%, 1/12/01..... A-1+ 2,500 2,467,600
Goldman Sachs Group L.P.
6.55%, 1/16/01................ A-1+ 2,230 2,199,494
Ford Motor Credit Co. 6.52%,
1/17/01....................... A-1 3,850 3,796,392
</TABLE>
22 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Capital Growth Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ---------- --------------
<S> <C> <C> <C>
COMMERCIAL PAPER--CONTINUED
Household Finance Corp. 6.52%,
1/22/01....................... A-1 $ 3,175 $ 3,127,920
Private Export Funding Corp.
6.50%, 1/25/01................ A-1+ 3,450 3,397,215
Alcoa, Inc. 6.50%, 2/8/01..... A-1 3,000 2,945,833
Lexington Parker Capital Co.
LLC 6.50%, 3/1/01............. A-1 410 401,103
SBC Communications, Inc.
6.45%, 3/12/01................ A-1+ 3,195 3,120,592
Private Export Funding Corp.
6.46%, 3/29/01................ A-1+ 2,500 2,434,222
--------------
124,612,490
--------------
FEDERAL AGENCY SECURITIES--0.6%
FHLMC Discount Notes 6.40%,
11/2/00....................... 7,000 6,998,756
<CAPTION>
PAR
VALUE
(000) VALUE
---------- --------------
<S> <C> <C> <C>
FHLMC Discount Notes 6.40%,
11/21/00...................... $ 4,220 $ 4,204,996
Fannie Mae Discount Note
6.42%, 11/30/00............... 5,000 4,973,718
FHLMC Discount Notes 6.435%,
12/26/00...................... 2,085 2,064,502
--------------
18,241,972
--------------
------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $142,853,555) 142,854,462
------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--99.7%
(IDENTIFIED COST $1,898,431,388) 2,888,753,506(a)
Cash and receivables, less liabilities--0.3% 7,900,265
----------------
NET ASSETS--100.0% $ 2,896,653,771
================
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $1,068,280,737 and gross
depreciation of $80,552,617 for federal income tax purposes. At October 31,
2000, the aggregate cost of securities for federal income tax purposes was
$1,901,025,386.
(b) Non-income producing.
See Notes to Financial Statements 23
<PAGE>
Phoenix-Engemann Capital Growth Fund
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $1,898,431,388) $2,888,753,506
Short-term investments held as collateral
for loaned securities 2,680,000
Cash 28,462
Receivables
Fund shares sold 270,581
Investment securities sold 24,234,536
Dividends and interest 537,456
Prepaid expenses 19,000
--------------
Total assets 2,916,523,541
--------------
LIABILITIES
Payables
Collateral on securities loaned 2,680,000
Fund shares repurchased 1,702,404
Investment securities purchased 11,989,361
Investment advisory fee 1,625,670
Transfer agent fee 711,936
Distribution fee 689,334
Financial agent fee 56,860
Trustees' fee 10,208
Accrued expenses 403,997
--------------
Total liabilities 19,869,770
--------------
NET ASSETS $2,896,653,771
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $1,757,571,105
Accumulated net realized gain 148,760,548
Net unrealized appreciation 990,322,118
--------------
NET ASSETS $2,896,653,771
==============
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $2,796,095,433) 95,957,987
Net asset value per share $29.14
Offering price per share $29.14/(1-5.75%) $30.92
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $100,558,338) 3,604,578
Net asset value and offering price per share $27.90
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 10,989,051
Interest 10,150,649
Security lending 318,256
Foreign taxes withheld (24,616)
--------------
Total investment income 21,433,340
--------------
EXPENSES
Investment advisory fee 20,650,443
Distribution fee, Class A 7,706,360
Distribution fee, Class B 1,091,967
Financial agent fee 690,155
Transfer agent 3,760,054
Printing 549,265
Custodian 184,036
Professional 54,804
Registration 44,402
Trustees 24,500
Miscellaneous 51,494
--------------
Total expenses 34,807,480
Custodian fees paid indirectly (6,736)
--------------
Net expenses 34,800,744
--------------
NET INVESTMENT LOSS (13,367,404)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 149,777,852
Net change in unrealized appreciation (depreciation) on
investments 182,346,026
--------------
NET GAIN ON INVESTMENTS 332,123,878
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 318,756,474
==============
</TABLE>
24 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Capital Growth Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/00 10/31/99
-------------- --------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (13,367,404) $ (7,296,538)
Net realized gain (loss) 149,777,852 360,181,527
Net change in unrealized appreciation
(depreciation) 182,346,026 360,915,113
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 318,756,474 713,800,102
-------------- --------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A (345,471,309) (230,032,244)
Net realized gains, Class B (12,455,394) (7,477,746)
-------------- --------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (357,926,703) (237,509,990)
-------------- --------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(7,965,171 and 10,503,608 shares,
respectively) 247,194,588 288,870,150
Net asset value of shares issued from
reinvestment of distributions
(10,232,449 and 8,345,723 shares,
respectively) 310,043,804 213,735,576
Cost of shares repurchased (17,481,257
and 21,165,765 shares, respectively) (544,392,522) (583,643,137)
Capital contribution from Adviser (See
Note 2) -- 4,561,466
-------------- --------------
Total 12,845,870 (76,475,945)
-------------- --------------
CLASS B
Proceeds from sales of shares (506,171
and 754,665 shares, respectively) 15,078,207 20,206,456
Net asset value of shares issued from
reinvestment of distributions
(374,587 and 276,189 shares,
respectively) 10,937,941 6,893,757
Cost of shares repurchased (692,234
and 731,422 shares, respectively) (20,742,273) (19,645,641)
Capital contribution from Adviser (See
Note 2) -- 158,551
-------------- --------------
Total 5,273,875 7,613,123
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS 18,119,745 (68,862,822)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS (21,050,484) 407,427,290
NET ASSETS
Beginning of period 2,917,704,255 2,510,276,965
-------------- --------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$0 AND $0, RESPECTIVELY] $2,896,653,771 $2,917,704,255
============== ==============
</TABLE>
See Notes to Financial Statements 25
<PAGE>
Phoenix-Engemann Capital Growth Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------------
YEAR ENDED OCTOBER 31
----------------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 29.61 $ 24.95 $ 27.83 $ 26.87 $ 24.92
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(2) (0.12) (0.06) (0.06) 0.14 0.20
Net realized and unrealized gain (loss) 3.35 7.06 2.73 5.62 3.63
---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 3.23 7.00 2.67 5.76 3.83
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- (0.21) (0.25)
Dividends from net realized gains (3.70) (2.39) (5.55) (4.59) (1.63)
---------- ---------- ---------- ---------- ----------
TOTAL DISTRIBUTIONS (3.70) (2.39) (5.55) (4.80) (1.88)
---------- ---------- ---------- ---------- ----------
Capital contribution from Adviser -- 0.05 -- -- --
---------- ---------- ---------- ---------- ----------
Change in net asset value (0.47) 4.66 (2.88) 0.96 1.95
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 29.14 $ 29.61 $ 24.95 $ 27.83 $ 26.87
========== ========== ========== ========== ==========
Total return(1) 10.43% 29.76%(3) 12.26% 24.81% 16.34%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $2,796,095 $2,819,742 $2,434,217 $2,518,289 $2,347,471
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.06%(4) 1.07%(4) 1.08% 1.10% 1.17%
Net investment income (0.39)% (0.23)% (0.22)% 0.53% 0.80%
Portfolio turnover rate 75% 100% 110% 196% 116%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------
YEAR ENDED OCTOBER 31
-----------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 28.68 $ 24.40 $ 27.51 $ 26.63 $ 24.74
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(2) (0.34) (0.26) (0.24) (0.06) --
Net realized and unrealized gain (loss) 3.26 6.88 2.68 5.57 3.61
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 2.92 6.62 2.44 5.51 3.61
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- (0.04) (0.09)
Dividends from net realized gains (3.70) (2.39) (5.55) (4.59) (1.63)
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (3.70) (2.39) (5.55) (4.63) (1.72)
--------- --------- --------- --------- ---------
Capital contribution from Adviser -- 0.05 -- -- --
--------- --------- --------- --------- ---------
Change in net asset value (0.78) 4.28 (3.11) 0.88 1.89
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 27.90 $ 28.68 $ 24.40 $ 27.51 $ 26.63
========= ========= ========= ========= =========
Total return(1) 9.61% 28.80%(3) 11.41% 23.89% 15.48%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $100,558 $97,963 $76,060 $68,022 $45,326
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.81%(4) 1.82%(4) 1.83% 1.85% 1.93%
Net investment income (1.14)% (0.99)% (0.97)% (0.25)% 0.01%
Portfolio turnover rate 75% 100% 110% 196% 116%
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Computed using average shares outstanding.
(3) 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.
(4) 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.
26 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN HIGH YIELD FUND
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 and a
secondary objective of capital growth.
The Fund invests in U.S. high-yield corporate bonds as well as government
and corporate bonds 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: For the 12 months ended October 31, 2000, the Fund's Class A shares were down
2.65%, Class B shares fell 3.52% and Class C shares dropped 3.51% compared with
a return of negative 1.68% for the Merrill Lynch High Yield Master II Index(1)
and an average return of minus 2.77% for a universe of 357 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 DISAPPOINTING PERFORMANCE?
A: A number of factors had a negative impact on the return for the high-yield
market and the Fund. Overall credit quality declined in 2000 as evidenced by a
rising corporate default rate and an increasing number of rating downgrades by
the rating agencies. The risk premium for corporate bonds increased throughout
the year as investors demanded more yield for the perceived increase in risk.
Lower credit quality bonds such as those in the high-yield sector proved to be
particularly vulnerable as investors reduced their exposure to the sector for
the higher credit quality asset classes.
The Fund's performance was also negatively impacted by the portfolio's
relative overweighting to the telecommunications industry. The industry
continues to grow rapidly; however, the ongoing need for capital to finance the
growth was a concern as access to capital has declined with the weaker equity
markets. The relative performance for the Fund was helped by its exposure to
emerging markets as the sector continued to outperform in 2000 with the
improvement in global economies.
Q: HOW IS THE FUND CURRENTLY POSITIONED?
A: Currently, the Fund has approximately a 73% exposure to U.S. high-yield
market debt, 10% to non-U.S. non-emerging debt (primarily U.K., Canada and
Europe), 8% to emerging market high-yield debt and 6% to high-yield
mortgage-backed securities. Our largest industry sector weighting remains
telecommunications with an emphasis on companies in the wireless/cellular
subsector. Additional industry overweightings include gaming and health care.
The second largest absolute industry exposure is cable with an emphasis on the
international sector. We remain underweighted in many
(1) THE MERRILL LYNCH HIGH YIELD MASTER II INDEX MEASURES HIGH-YIELD BOND
TOTAL-RETURN PERFORMANCE. THE INDEX IS UNMANAGED AND NOT AVAILABLE FOR
DIRECT INVESTMENT.
27
<PAGE>
PHOENIX-GOODWIN HIGH YIELD FUND (CONTINUED)
of the cyclical industry sectors, such as chemicals, metals/mining and
paper/forest products as these industries are facing increased worldwide
capacity and higher energy costs.
Q: WHAT IS YOUR NEAR-TERM OUTLOOK?
A: Our near-term outlook is somewhat cautious given the declining credit profile
of the high-yield sector. Year-end selling has exacerbated volatility in the
sector as yields are now approaching the historical high levels seen in the
midst of the 1990 economic recession when credit defaults were significantly
higher. We expect a continuation of moderate economic growth with a bias toward
stable or slightly declining interest rates.
The current market valuation appears to be close to fully discounting credit
and default concerns, assuming we are not heading for a recession. Longer term,
the relative valuation of the high-yield sector appears attractive with yields
near historical highs and economic growth expected to remain positive. A
catalyst for a reversal of the 2000 trend would be a peak in the default rate
trend and reduced uncertainty about access to future capital for the
telecommunications sector. We would expect money to flow back into the
high-yield sector as investors are attracted to the high yields and declining
risk profile.
NOVEMBER 29, 2000
28
<PAGE>
Phoenix-Goodwin High Yield Fund
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 10/31/00
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR 5 YEARS 10 YEARS TO 10/31/00 DATE
-------- -------- -------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Class A Shares at NAV(2) (2.65)% 5.42% 9.74% -- --
Class A Shares at POP(3) (7.27) 4.40 9.21 -- --
Class B Shares at NAV(2) (3.52) 4.58 -- 3.70% 2/16/94
Class B Shares with CDSC(4) (7.01) 4.58 -- 3.70 2/16/94
Class C Shares at NAV(2) (3.51) -- -- (3.59) 2/27/98
Class C Shares with CDSC(4) (3.51) -- -- (3.59) 2/27/98
Merrill Lynch High Yield
Master II Index(8) (1.68) 5.67 11.59 Note 5 Note 5
CS First Boston High Yield
Index(9) 1.92 6.20 11.76 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 6.34% for Class B (since 2/28/94) and (0.07)% for
Class C (since 2/28/98), respectively.
(6) Index performance is 6.32% for Class B (since 2/28/94) and 0.46% for
Class C (since 2/28/98), respectively. All returns for this index are
calculated through September 29, 2000. See Note 9 for further explanation.
(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 Merrill Lynch High Yield Master II Index is an unmanaged, commonly used
measure of total return performance for high-yield bonds. The index's
performance does not reflect sales charges.
(9) The CS First Boston High Yield Index is an unmanaged, commonly used measure
of total return performance for high-yield bonds. The Index is no longer in
existence due to a merger between CS First Boston and DLJ Companies. The
last day the index was published was September 29, 2000. 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.
GROWTH OF $10,000 PERIODS ENDING 10/31
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PHOENIX-GOODWIN HIGH YIELD MERRILL LYNCH HIGH YIELD MASTER II CS FIRST BOSTON HIGH YIELD
FUND CLASS A(7) INDEX(8) INDEX (THROUGH 9/29/00)(9)
<S> <C> <C> <C>
10/90 $9,525 $10,000 $10,000
10/91 $12,075 $13,969 $14,512
10/92 $14,040 $16,307 $16,746
10/93 $17,112 $19,262 $19,934
10/94 $16,672 $19,328 $20,263
10/95 $18,538 $22,717 $23,352
10/96 $21,495 $25,234 $25,797
10/97 $24,726 $28,848 $29,601
10/98 $22,507 $28,825 $28,864
10/99 $24,794 $30,443 $30,462
10/00 $24,137 $29,931 $30,412
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
10/31/90 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 10/31/00
As a percentage of bond holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Corporate 67%
Foreign Corporate 22%
Non-Agency Mortgage-Backed 7%
Foreign Government 2%
Convertible 1%
Asset-Backed 1%
</TABLE>
29
<PAGE>
Phoenix-Goodwin High Yield Fund
TEN LARGEST HOLDINGS AT OCTOBER 31, 2000 (AS A PERCENTAGE OF TOTAL NET ASSETS)
<TABLE>
<C> <S> <C>
1. First Chicago/Lennar Trust 2.1%
NON-AGENCY MORTGAGE-BACKED SECURITY
2. NTL Communications Corp. Series B 1.9%
TELECOMMUNICATIONS CORPORATE BOND
3. Horseshoe Gaming Holdings Corp. 1.9%
GAMING INDUSTRY CORPORATE BOND
4. Lamar Media Corp. 1.8%
ADVERTISING INDUSTRY CORPORATE BOND
5. Buckeye Technologies, Inc. 1.8%
FOREST PRODUCTS CORPORATE BOND
6. Bally Total Fitness Holding Corp. 1.7%
LEISURE INDUSTRY CORPORATE BOND
7. Global Crossing Holdings Ltd. 1.7%
TELECOMMUNICATIONS INDUSTRY PREFERRED STOCK
8. United Rentals, Inc. 1.6%
CONSUMER SERVICES CORPORATE BOND
9. ICN Pharmaceuticals, Inc. 1.6%
HEALTH-CARE INDUSTRY CORPORATE BOND
10. S.D. Warren Co. 1.6%
FOREST PRODUCTS CORPORATE BOND
</TABLE>
INVESTMENTS AT OCTOBER 31, 2000
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ---------- ------------
<S> <C> <C> <C>
ASSET-BACKED SECURITIES--0.8%
Pennant CBO Ltd. 1A, D 13.43%,
3/14/11................................. Ba $ 3,000 $ 3,007,500
--------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $2,919,635) 3,007,500
--------------------------------------------------------------------------------
CORPORATE BONDS--56.6%
AUTO PARTS & EQUIPMENT--0.5%
Cambridge Industries, Inc. Series B
10.25%, 7/15/07(f)(g)................... NR 5,000 1,650,000
BROADCASTING (TELEVISION, RADIO & CABLE)--3.4%
CSC Holdings, Inc. 7.625%, 7/15/18...... Ba 4,000 3,536,268
Charter Communications Holdings LLC
8.625%, 4/1/09.......................... B 2,000 1,810,000
RCN Corp. 10.125%, 1/15/10.............. B 3,000 2,055,000
UnitedGlobalCom, Inc. Series B 0%,
2/15/08(d).............................. B 8,000 4,920,000
------------
12,321,268
------------
BUILDING MATERIALS--1.7%
K.Hovnanian Enterprises, Inc. 9.125%,
5/1/09.................................. Ba 4,000 3,450,000
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ---------- ------------
<S> <C> <C> <C>
BUILDING MATERIALS--CONTINUED
Nortek, Inc. 9.875%, 3/1/04............. B $ 3,000 $ 2,715,000
------------
6,165,000
------------
COMMUNICATIONS EQUIPMENT--5.2%
Metromedia Fiber Network, Inc. 10%
12/15/09................................ B 5,100 3,890,688
Nextel International, Inc. 144A 12.75%,
8/1/10(b)............................... Caa 4,000 3,700,000
Park N View, Inc. Series B 13%,
5/15/08................................. B 4,000 200,000
Spectrasite Holdings, Inc. Series B
10.75%, 3/15/10......................... B 500 462,500
Spectrasite Holdings, Inc. Series B 0%,
3/15/10(d).............................. B 9,800 4,802,000
Stellex Technologies, Inc. Series B
9.50%, 11/1/07(f)....................... Ca 8,500 977,500
Telecorp PCS, Inc. 0%, 4/15/09(d)....... B 7,000 4,550,000
------------
18,582,688
------------
COMPUTERS (SOFTWARE & SERVICES)--2.8%
Exodus Communications, Inc. 144A
11.625%, 7/15/10(b)..................... B 2,900 2,697,000
Globix Corp. 12.5% 2/1/10............... B-(c) 3,500 1,977,500
</TABLE>
30 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin High Yield Fund
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ---------- ------------
<S> <C> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)--CONTINUED
PSINet, Inc. 11%, 8/1/09................ B $ 1,000 $ 487,500
WAM!NET, Inc. Series B 0%, 3/1/05(d).... CCC+(c) 11,000 5,005,000
------------
10,167,000
------------
DISTRIBUTORS (FOOD & HEALTH)--1.0%
Bergen Brunswig 7.375%, 1/15/03......... Ba 1,950 1,830,389
Pharmerica, Inc. 8.375%, 4/1/08......... B 2,450 1,849,750
------------
3,680,139
------------
ELECTRIC COMPANIES--0.3%
CMS Energy Corp. 9.875%, 10/15/07....... Ba 900 909,420
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--4.9%
Anchor Gaming 144A 9.875%,
10/15/08(b)............................. B 2,900 2,947,125
Horseshoe Gaming Holdings Corp. Series B
8.625%, 5/15/09......................... B 6,900 6,693,000
International Game Technology 8.375%,
5/15/09................................. Ba 2,900 2,842,000
Waterford Gaming LLC 144A 9.50%,
3/15/10(b).............................. B 5,216 5,189,920
------------
17,672,045
------------
HEALTH CARE (GENERIC AND OTHER)--1.6%
ICN Pharmaceuticals, Inc. Series B
9.25%, 8/15/05.......................... Ba 6,000 5,850,000
HEALTH CARE (HOSPITAL MANAGEMENT)--1.5%
HCA - The Healthcare Co. 7%, 7/1/07..... Ba 1,000 924,583
HCA - The Healthcare Co. 8.75%,
9/1/10.................................. Ba 1,500 1,515,955
Tenet Healthcare Corp. Series B 7.625%,
6/1/08.................................. Ba 3,000 2,865,000
------------
5,305,538
------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--1.9%
Fresenius Medical Capital Trust I 9%,
12/1/06................................. Ba 2,500 2,450,000
Fresenius Medical Capital Trust II
7.875%, 2/1/08.......................... Ba 1,900 1,767,000
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ---------- ------------
<S> <C> <C> <C>
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--CONTINUED
Team Health, Inc. Series B 12%,
3/15/09................................. B $ 3,000 $ 2,730,000
------------
6,947,000
------------
HEALTH CARE (SPECIALIZED SERVICES)--0.7%
Hanger Orthopedic Group 11.25%,
6/15/09................................. B 3,550 2,485,000
HOMEBUILDING--1.1%
Beazer Homes USA, Inc. 9%, 3/1/04....... Ba 3,000 2,868,750
Ryland Group 9.75%, 9/1/10.............. Ba 900 882,000
------------
3,750,750
------------
INSURANCE (MULTI-LINE)--1.0%
Willis Corroon Corp. 9%, 2/1/09......... Ba 4,000 3,650,000
LEISURE TIME (PRODUCTS)--2.7%
Bally Total Fitness Holding Corp. Series
D 9.875%, 10/15/07...................... B 6,700 6,264,500
Capital Gaming International, Inc. 12%,
5/28/01................................. NR 2 682
Venetian Casino LV Sands 14.25%,
11/15/05(d)............................. Caa 3,500 3,535,000
------------
9,800,182
------------
METALS MINING--0.1%
NSM Steel Ltd. Series B 144A 12.25%,
2/1/08(b)(e)(f)......................... NR 7,500 187,500
OIL & GAS (DRILLING & EQUIPMENT)--2.1%
R & B Falcon Corp. Series B 6.75%,
4/15/05................................. Ba 5,500 5,170,000
R & B Falcon Corp. Series B 6.95%,
4/15/08................................. Ba 2,500 2,325,000
------------
7,495,000
------------
OIL & GAS (EXPLORATION & PRODUCTION)--0.6%
Benton Oil & Gas Co. 11.625%, 5/1/03.... B 2,975 2,142,000
PAPER & FOREST PRODUCTS--3.4%
Buckeye Technologies, Inc. 8%,
10/15/10................................ Ba 6,765 6,359,100
</TABLE>
See Notes to Financial Statements 31
<PAGE>
Phoenix-Goodwin High Yield Fund
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ---------- ------------
<S> <C> <C> <C>
PAPER & FOREST PRODUCTS--CONTINUED
S.D. Warren Co. 14%, 12/15/06........... Ba $ 5,330 $ 5,783,320
------------
12,142,420
------------
PERSONAL CARE--1.0%
Revlon Consumer Products Corp. 8.125%,
2/1/06.................................. Caa 2,000 1,410,000
Revlon Consumer Products Corp. 9%,
11/1/06................................. Caa 3,000 2,205,000
------------
3,615,000
------------
PHOTOGRAPHY/IMAGING--0.3%
Anacomp, Inc. Series D 10.875%,
4/1/04(e)(f)............................ Caa 6,200 930,000
POWER PRODUCERS (INDEPENDENT)--1.2%
AES Corp. 9.375%, 9/15/10............... Ba 1,900 1,938,000
Calpine Corp. 8.25%, 8/15/05............ Ba 2,400 2,392,234
------------
4,330,234
------------
RETAIL (SPECIALTY)--1.5%
Musicland Group 9%, 6/15/03............. B 5,100 4,641,000
Musicland Group, Inc. Series B 9.875%,
3/15/08................................. B 1,000 800,000
------------
5,441,000
------------
SERVICES (ADVERTISING/MARKETING)--1.8%
Lamar Media Corp. 9.25%, 8/15/07........ B 6,500 6,402,500
SERVICES (COMMERCIAL & CONSUMER)--3.8%
Fisher Scientific International, Inc.
9%, 2/1/08.............................. B 4,000 3,670,000
Service Corporation International 7%,
6/1/15.................................. B 5,400 3,996,000
United Rentals, Inc. Series B 9.50%,
6/1/08.................................. B 7,125 5,878,125
------------
13,544,125
------------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--1.2%
Alamosa PCS Holdings, Inc. 0%,
2/15/10(d).............................. Caa 4,500 2,182,500
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ---------- ------------
<S> <C> <C> <C>
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--CONTINUED
Voicestream Wireless 0%, 11/15/09(d).... B $ 2,900 $ 2,109,750
------------
4,292,250
------------
TELECOMMUNICATIONS (LONG DISTANCE)--4.7%
KMC Telecom Holdings, Inc. 0%,
2/15/08(d).............................. Caa 8,000 960,000
KMC Telecom Holdings, Inc. 13.5%,
5/15/09................................. Caa 3,000 960,000
Level 3 Communication, Inc. 10.75%,
3/15/08................................. B 5,000 3,602,489
NTL Communications Corp. Series B 9.25%,
11/15/06................................ B 9,000 6,713,344
NTL Communications Corp. 0%,
10/1/08(d).............................. B 2,500 1,487,500
NTL, Inc. 144A 5.75%, 12/15/09(b)....... Caa 3,500 2,655,625
NTL, Inc. 144A 0%, 4/1/08(b)(d)......... B3 550 321,750
------------
16,700,708
------------
TELEPHONE--0.9%
Pathnet, Inc. 12.25%, 4/15/08........... NR 5,825 2,067,875
Teligent, Inc. 11.50%, 12/1/07.......... Caa 2,500 1,087,500
------------
3,155,375
------------
TEXTILES (APPAREL)--0.3%
Collins & Aikman Products Co. 11.50%,
4/15/06................................. B 1,340 1,162,450
TEXTILES (HOME FURNISHINGS)--0.3%
Westpoint Stevens, Inc. 7.875%,
6/15/05................................. B 1,500 1,117,500
TRUCKERS--2.3%
Sea Containers Ltd. Series B 7.875%,
2/15/08................................. Ba 8,000 5,400,000
Ventura Group, Inc. Series B 10.25%,
6/30/08................................. B 3,600 2,934,000
------------
8,334,000
------------
</TABLE>
32 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin High Yield Fund
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ---------- ------------
<S> <C> <C> <C>
WASTE MANAGEMENT--0.8%
Allied Waste Industries 7.40%, 9/15/35.. Ba $ 4,000 $ 2,920,000
--------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $264,780,408) 202,848,092
--------------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED
SECURITIES--5.6%
First Chicago/Lennar Trust 97-CHL1, E
8.125%, 2/28/11(d)...................... B(c) 10,000 7,621,880
LB Commercial Conduit Mortgage Trust 6%,
12/15/08................................ BA 3,400 2,593,185
Salomon Brothers Mortgage Securities VII
95-C, 1 7.183%, 9/30/08(d).............. B 5,076 4,377,832
Structured Asset Securities Corp. 00-C2,
L 8.37%, 3/20/03(d)..................... BB+(c) 5,824 5,649,651
--------------------------------------------------------------------------------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $20,105,594) 20,242,548
--------------------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--2.1%
BRAZIL--2.1%
Federal Republic of Brazil 8%, 4/15/14.. B 4,310 3,224,370
Federal Republic of Brazil 11%,
8/17/40................................. B 5,400 4,158,000
--------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(IDENTIFIED COST $7,663,550) 7,382,370
--------------------------------------------------------------------------------
FOREIGN CORPORATE BONDS--18.7%
ARGENTINA--1.3%
Imasac SA 144A 11%, 5/2/05(b)........... B 3,230 2,164,100
Multicanal SA 13.125%, 4/15/09.......... B 3,000 2,617,500
------------
4,781,600
------------
BAHAMAS--1.0%
Sun International Hotels Ltd. 9%,
3/15/07................................. B 1,000 937,500
Sun International Hotels Ltd. 8.625%,
12/15/07................................ B 3,000 2,767,500
------------
3,705,000
------------
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ---------- ------------
<S> <C> <C> <C>
BRAZIL--1.1%
Localiza Rent a Car 10.25%, 10/1/05..... B $ 5,000 $ 3,975,000
CANADA--5.1%
CHC Helicopter 11.75%, 7/15/07.......... B 3,700 3,214,691
Clearnet Communications, Inc. 0%,
12/15/05(d)............................. Ba 4,000 4,260,000
Clearnet Communications, Inc. 0%,
5/1/09(d)............................... Ba 4,000 3,240,000
GT Group Telecom, Inc. 0%, 2/1/10(d).... Caa 5,450 2,180,000
Hurricane Hydrocarbons Ltd. 144A 16.0%,
12/31/01(b)............................. B 2,439 2,433,147
Microcell Telecommunications Series B
0%, 6/1/06(d)........................... B 3,000 2,902,500
------------
18,230,338
------------
CAYMAN ISLANDS--0.5%
Battery Park CDO Ltd. Series 5 144A
15.407%, 2/10/11(b)(i).................. B 2,000 1,860,000
GERMANY--0.8%
Callahan Nordrhein-WESTF 144A 14%,
7/15/10(b).............................. B 3,000 2,910,000
ISRAEL--1.4%
Partner Communications Series DTC 13%,
8/15/10................................. B 6,000 4,935,000
MEXICO--2.0%
Grupo Industrial Durango 12.625%,
8/1/03.................................. B 1,750 1,767,500
Maxcom Telecomunicaciones SA Series B
13.75%, 4/1/07.......................... NR 6,000 2,850,000
Vicap SA 11.375%, 5/15/07............... Ba 3,000 2,550,000
------------
7,167,500
------------
NETHERLANDS--1.6%
Netia Holdings BV 13.75%, 6/15/10(h).... B 4,170 3,110,516
United Pan-Europe Communications Series
B 11.25%, 11/1/09(h).................... B 4,000 2,627,698
------------
5,738,214
------------
</TABLE>
See Notes to Financial Statements 33
<PAGE>
Phoenix-Goodwin High Yield Fund
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ---------- ------------
<S> <C> <C> <C>
POLAND--0.0%
Poland Telecom Finance Series B 14%,
12/1/07(g)(f)........................... NR $ 5,000 $ 100,000
SOUTH KOREA--1.0%
Hyundai Semiconductor 144A 8.25%,
5/15/04(b).............................. Ba 4,000 3,496,044
UNITED KINGDOM--2.2%
Atlantic Telecom Group PLC 13%,
1/15/10(h).............................. NR 3,125 1,324,444
Colt Telecom Group PLC 7.625%,
12/15/09(h)............................. B+ 6,000 4,475,562
Jazztel PLC 13.25%, 12/15/09(h)......... CAA1 3,000 1,856,341
------------
7,656,347
------------
MAURITIUS--0.7%
APP International Finance 144A 0%,
7/5/01(b)(d)............................ B 3,150 2,331,000
--------------------------------------------------------------------------------
TOTAL FOREIGN CORPORATE BONDS
(IDENTIFIED COST $86,397,394) 66,886,043
--------------------------------------------------------------------------------
CONVERTIBLE BONDS--1.1%
COMMUNICATIONS EQUIPMENT--0.1%
Earthweb, Inc. Cv. 144A 7%, 1/25/05..... NR 1,000 490,000
COMPUTERS (SOFTWARE & SERVICES)--1.0%
At Home Corp. 144A 4.75%, 12/15/06(b)... B3 5,865 3,650,963
--------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS
(IDENTIFIED COST $6,345,346) 4,140,963
--------------------------------------------------------------------------------
<CAPTION>
SHARES VALUE
---------- ------------
PREFERRED STOCKS--5.2%
<S> <C> <C> <C>
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--2.5%
Dobson Communications Corp. PIK
12.25%.................................. 16,431 $ 1,454,176
Dobson Communications Corp. PIK 13%..... 22,045 2,006,074
Nextel Communications, Inc. Series D PIK
13%..................................... 56,916 5,691,614
------------
9,151,864
------------
TELECOMMUNICATIONS (LONG DISTANCE)--1.7%
Global Crossing Holdings Ltd. PIK
10.50%.................................. 62,500 6,000,000
TELEPHONE--1.0%
Broadwing Communications, Inc. 12.50%
Series B................................ 34,050 3,422,006
--------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $19,628,288) 18,573,870
--------------------------------------------------------------------------------
COMMON STOCKS--1.4%
SHIPPING--0.3%
Hvide Marine, Inc.(e)................... 81,666 898,326
SPECIALTY PRINTING--0.0%
Sullivan Holdings, Inc. Class C(e)(g)... 76 0
TELECOMMUNICATIONS (LONG DISTANCE)--1.1%
AT&T Latin America Corp. Class A(e)..... 357,500 2,547,188
GT Group Telecom, Inc................... 39,000 379,641
McLeodUSA, Inc. Class A(e).............. 54,863 1,056,105
------------
3,982,934
------------
--------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $4,901,107) 4,881,260
--------------------------------------------------------------------------------
</TABLE>
34 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin High Yield Fund
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------
WARRANTS--0.3%
<S> <C> <C> <C>
COMMUNICATIONS EQUIPMENT--0.1%
Atlantic Telecom Group PLC Warrants(e).. 3,125 $ 13,245
GT Group Telecom, Inc. Warrants(e)...... 5,450 327,000
Loral Space & Communications, Inc.
Warrants(e)............................. 8,000 56,000
Maxcom Telecomunicaciones SA
Warrants(e)............................. 6,000 0
Park N View, Inc. Warrants(e)........... 4,000 12,634
------------
408,879
------------
COMPUTERS (SOFTWARE & SERVICES)--0.1%
WAM!NET, Inc. Warrants(e)............... 33,000 383,625
LEISURE TIME (PRODUCTS)--0.0%
Capital Gaming International, Inc.
Warrants(e)(g).......................... 410 0
METALS MINING--0.0%
NSM Steel Ltd. 144A Warrants(b)(e)(g)... 4,748,195 47,482
TELECOMMUNICATIONS (LONG DISTANCE)--0.0%
KMC Telecom Holdings, Inc. 144A
Warrants(b)(e).......................... 8,000 40,000
Poland Telecom Finance 144A Warrants
(Poland)(b)(e)(g)....................... 5,000 0
------------
40,000
------------
TELEPHONE--0.1%
Pathnet, Inc. Warrants(e)............... 6,000 60,000
--------------------------------------------------------------------------------
TOTAL WARRANTS
(IDENTIFIED COST $1,761) 939,986
--------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--91.8%
(IDENTIFIED COST $412,743,083) 328,902,632
--------------------------------------------------------------------------------
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ---------- ------------
SHORT-TERM OBLIGATIONS--6.4%
<S> <C> <C> <C>
COMMERCIAL PAPER--3.6%
Sara Lee Corp. 6.50%, 11/2/00........... A-1+ $ 2,000 $ 1,999,639
General Electric Capital Corp. 6.49%,
11/7/00................................. A-1+ 3,500 3,496,214
Gannett Co., Inc. 6.48%, 11/8/00........ A-1 975 973,771
Kellogg Co. 6.55%, 11/9/00.............. A-1+ 3,800 3,794,469
Receivables Capital Corp. 6.53%,
11/21/00................................ A-1+ 2,863 2,852,614
------------
13,116,707
------------
FORWARD CONTRACT LOAN TRANSACTION--2.8%
VoiceStream Term Loan B 2.25%, 5/7/01... 10,000 9,925,000
--------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $23,099,870) 23,041,707
--------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--98.2%
(IDENTIFIED COST $435,842,953) 351,944,339(a)
Cash and receivables, less liabilities--1.8% 6,395,980
------------
NET ASSETS--100.0% $358,340,319
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $5,709,634 and gross
depreciation of $90,976,159 for federal income tax purposes. At October 31,
2000, the aggregate cost of securities for federal income tax purposes was
$437,210,864.
(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,
2000, these securities amounted to a value of $34,211,656 or 9.5% 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) Security valued at fair value as determined in good faith by or under the
direction of the Trustees. Security is illiquid.
(h) Par value represents Euro.
(i) Security is illiquid.
See Notes to Financial Statements 35
<PAGE>
Phoenix-Goodwin High Yield Fund
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $435,842,953) $ 351,944,339
Cash 660
Receivables
Interest and dividends 8,560,497
Investment securities sold 4,992,938
Fund shares sold 388,475
Net unrealized appreciation on swap agreements 7,026,553
Prepaid expenses 3,997
-------------
Total assets 372,917,459
-------------
LIABILITIES
Payables
Investment securities purchased 7,980,000
Fund shares repurchased 1,974,870
Investment advisory fee 204,883
Distribution fee 109,066
Transfer agent fee 151,298
Financial agent fee 23,384
Trustees' fee 10,208
Net unrealized depreciation on forward contracts 4,014,007
Accrued expenses 109,424
-------------
Total liabilities 14,577,140
-------------
NET ASSETS $ 358,340,319
=============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 563,699,696
Undistributed net investment income 1,594,709
Accumulated net realized loss (125,980,415)
Net unrealized depreciation (80,973,671)
-------------
NET ASSETS $ 358,340,319
=============
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $312,543,839) 47,430,526
Net asset value per share $6.59
Offering price per share $6.59/(1-4.75%) $6.92
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $43,107,555) 6,586,428
Net asset value and offering price per share $6.54
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $2,688,925) 409,635
Net asset value and offering price per share $6.56
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 48,526,620
Dividends 2,030,054
------------
Total investment income 50,556,674
------------
EXPENSES
Investment advisory fee 2,839,729
Distribution fee, Class A 949,006
Distribution fee, Class B 541,591
Distribution fee, Class C 31,197
Financial agent fee 312,225
Transfer agent 816,326
Printing 119,263
Custodian 65,966
Registration 35,031
Professional 31,594
Trustees 24,500
Miscellaneous 21,940
------------
Total expenses 5,788,368
Custodian fees paid indirectly (28,354)
------------
Net expenses 5,760,014
------------
NET INVESTMENT INCOME 44,796,660
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (24,627,115)
Net realized loss on foreign currency transactions (226,178)
Net change in unrealized appreciation (depreciation) on
investments (29,683,984)
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions (4,101,610)
Net change in unrealized appreciation (depreciation) on swap
agreements 7,026,553
------------
NET LOSS ON INVESTMENTS (51,612,334)
------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (6,815,674)
============
</TABLE>
36 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin High Yield Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/00 10/31/99
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 44,796,660 $ 49,328,746
Net realized gain (loss) (24,853,293) (35,956,557)
Net change in unrealized appreciation
(depreciation) (26,759,041) 37,969,963
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (6,815,674) 51,342,152
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (39,338,693) (45,037,890)
Net investment income, Class B (5,365,716) (5,920,213)
Net investment income, Class C (313,050) (234,211)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (45,017,459) (51,192,314)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(14,011,356 and 18,425,232 shares,
respectively) 105,831,878 143,288,356
Net asset value of shares issued from
reinvestment of distributions
(2,951,075 and 3,230,108 shares,
respectively) 21,786,927 25,061,675
Cost of shares repurchased (21,456,475
and 26,344,264 shares, respectively) (161,045,856) (205,309,631)
------------ ------------
Total (33,427,051) (36,959,600)
------------ ------------
CLASS B
Proceeds from sales of shares
(2,604,794 and 2,899,381 shares,
respectively) 19,449,746 22,455,385
Net asset value of shares issued from
reinvestment of distributions
(256,146 and 278,064 shares,
respectively) 1,881,827 2,147,868
Cost of shares repurchased (4,207,878
and 3,357,007 shares, respectively) (31,428,696) (25,931,082)
------------ ------------
Total (10,097,123) (1,327,829)
------------ ------------
CLASS C
Proceeds from sales of shares (222,708
and 269,525 shares, respectively) 1,675,960 2,100,156
Net asset value of shares issued from
reinvestment of distributions
(15,239 and 10,955 shares,
respectively) 112,292 84,719
Cost of shares repurchased (233,851
and 96,278 shares, respectively) (1,746,910) (745,241)
------------ ------------
Total 41,342 1,439,634
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (43,482,832) (36,847,795)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (95,315,965) (36,697,957)
NET ASSETS
Beginning of period 453,656,284 490,354,241
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$1,594,709 AND $1,236,279,
RESPECTIVELY] $358,340,319 $453,656,284
============ ============
</TABLE>
See Notes to Financial Statements 37
<PAGE>
Phoenix-Goodwin High Yield Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------
YEAR ENDED OCTOBER 31
-----------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.53 $ 7.55 $ 9.09 $ 8.63 $ 8.17
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.79 0.76 0.83 0.80 0.78
Net realized and unrealized gain (loss) (0.95) -- (1.56) 0.46 0.46
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS (0.16) 0.76 (0.73) 1.26 1.24
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.78) (0.78) (0.81) (0.80) (0.78)
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (0.78) (0.78) (0.81) (0.80) (0.78)
--------- --------- --------- --------- ---------
Change in net asset value (0.94) (0.02) (1.54) 0.46 0.46
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 6.59 $ 7.53 $ 7.55 $ 9.09 $ 8.63
========= ========= ========= ========= =========
Total return(1) (2.65)% 10.16% (8.97)% 15.03% 15.95%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $312,544 $391,057 $427,659 $532,906 $501,265
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.22%(5) 1.16%(4) 1.12% 1.11% 1.17%
Net investment income 10.35% 9.71% 9.13% 8.76% 9.21%
Portfolio turnover rate 80% 73% 103% 167% 162%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------
YEAR ENDED OCTOBER 31
-----------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.51 $ 7.52 $ 9.07 $ 8.63 $ 8.19
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.72 0.70 0.76 0.73 0.71
Net realized and unrealized gain (loss) (0.95) 0.01 (1.55) 0.46 0.45
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS (0.23) 0.71 (0.79) 1.19 1.16
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.74) (0.72) (0.76) (0.75) (0.72)
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (0.74) (0.72) (0.76) (0.75) (0.72)
--------- --------- --------- --------- ---------
Change in net asset value (0.97) (0.01) (1.55) 0.44 0.44
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 6.54 $ 7.51 $ 7.52 $ 9.07 $ 8.63
========= ========= ========= ========= =========
Total return(1) (3.52)% 9.37% (9.61)% 14.18% 14.88%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $43,108 $59,547 $61,026 $52,184 $25,595
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.97%(5) 1.91%(4) 1.88% 1.86% 1.92%
Net investment income 9.62% 8.94% 8.46% 8.00% 8.47%
Portfolio turnover rate 80% 73% 103% 167% 162%
<CAPTION>
CLASS C
--------------------------------------
FROM
YEAR ENDED OCTOBER 31 INCEPTION
----------------------- 2/27/98 TO
2000 1999 10/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 7.53 $ 7.54 $ 9.31
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.73 0.71 0.50
Net realized and unrealized gain (loss) (0.96) -- (1.76)
--------- --------- ------
TOTAL FROM INVESTMENT OPERATIONS (0.23) 0.71 (1.26)
--------- --------- ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.74) (0.72) (0.51)
--------- --------- ------
TOTAL DISTRIBUTIONS (0.74) (0.72) (0.51)
--------- --------- ------
Change in net asset value (0.97) (0.01) (1.77)
--------- --------- ------
NET ASSET VALUE, END OF PERIOD $ 6.56 $ 7.53 $ 7.54
========= ========= ======
Total return(1) (3.51)% 9.38% (14.09)%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $2,689 $3,052 $1,669
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.97%(5) 1.91%(4) 1.88%(2)
Net investment income 9.69% 8.85% 8.94%(2)
Portfolio turnover rate 80% 73% 103%
</TABLE>
(1) Maximum sales charge is not reflected in 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.
(5) For the year ended October 31, 2000, 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.
38 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN MONEY MARKET FUND
A DISCUSSION WITH 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, 2000, Class A shares returned 5.59%,
Class B shares earned 4.80% and Class C shares were up 4.55%. The 12-month
return through October 31, 2000 for the Salomon Brothers 90-day T-bill Index(1)
was 5.75%. 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 economy grew vigorously as we entered the new millennium. The Dow Jones
Industrial Average and the Nasdaq Index both hit new highs.(2) Economic activity
in emerging-markets continued to be strong, along with increased economic growth
in developing countries.
At both the February 2 and March 21, 2000 Federal Reserve Board meetings,
the Fed raised interest rates, resulting in a total increase in the Fed funds
rate of 50 basis points. However, the economy remained strong, despite these
tightening initiatives, once again prompting the Federal Reserve to raise
interest rates 50 basis points at the May 16, 2000 meeting. Through the summer
and into the fall of this year, the Federal Reserve has continued to adopt a
bias toward higher rates.
Recent comments from the Federal Reserve suggest that there are some signs
of an economic slowing; however, conditions are favorable toward heightened
inflation, which would jeopardize the Fed's long-term goals of price stability
and sustainable growth.
Q: WHAT IS YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A: Going forward, slower consumer spending, the impact of a declining stock
market and higher energy prices could, in our view, threaten the economic
expansion. We believe that continued slowing in the economy, coupled with
limited signs of rising inflation, will prompt the Federal Reserve to lower
interest rates. As always, we will continuously monitor the portfolio and make
adjustments based on current market conditions.
DECEMBER 1, 2000
(1) THE SALOMON BROTHERS 90-DAY T-BILL INDEX MEASURES SHORT-TERM MONEY MARKET
PERFORMANCE.
(2) THE DOW JONES INDUSTRIAL AVERAGE MEASURES BROAD STOCK MARKET TOTAL-RETURN
PERFORMANCE. THE NASDAQ INDEX MEASURES TECHNOLOGY-ORIENTED STOCK MARKET
TOTAL-RETURN PERFORMANCE.
THE INDICES ARE UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT.
39
<PAGE>
Phoenix-Goodwin Money Market Fund
MONTHLY YIELD COMPARISON
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PHOENIX-GOODWIN
MONEY MARKET IBC MONEY
FUND CLASS A(1) FUND REPORT(2)
<S> <C> <C>
11/99 4.86% 4.88%
12/99 5.04% 5.08%
1/00 5.19% 5.12%
2/00 5.15% 5.16%
3/00 5.19% 5.24%
4/00 5.37% 5.37%
5/00 5.55% 5.54%
6/00 5.74% 5.81%
7/00 5.76% 5.90%
8/00 5.72% 5.92%
9/00 5.66% 5.90%
10/00 5.71% 5.90%
</TABLE>
(1) This chart illustrates the period from November 30, 1999 to October 31,
2000. 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.
40 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN MONEY MARKET FUND
INVESTMENTS AT OCTOBER 31, 2000
<TABLE>
<CAPTION>
FACE
VALUE INTEREST MATURITY
(000) DESCRIPTION RATE DATE VALUE
------- ----------- -------- --------- ------------
<C> <S> <C> <C> <C> <C>
FEDERAL AGENCY SECURITIES--5.0%
1,550 FNMA..................................... 4.75% 12/21/00 $ 1,545,991
2,500 FNMA..................................... 6.20 12/27/00 2,497,993
250 FHLB..................................... 6.38 1/24/01 249,811
2,500 FHLB..................................... 6.73 3/1/01 2,499,743
2,500 FHLB..................................... 5.75 4/30/01 2,487,287
-----------------------------------------------------------------------------------------
9,280,825
TOTAL FEDERAL AGENCY SECURITIES
-----------------------------------------------------------------------------------------
<CAPTION>
RESET
DATE
---------
FEDERAL AGENCY SECURITIES--VARIABLE(b)--11.6%
<C> <S> <C> <C> <C> <C>
389 SBA (Final Maturity 1/25/21)............. 7.00 11/1/00 388,143
2,451 SBA (Final Maturity 3/25/24)............. 6.88 11/1/00 2,447,015
3,000 SLMA (Final Maturity 3/7/01)............. 6.63 11/7/00 3,000,000
2,500 SLMA (Final Maturity 4/19/01)............ 6.77 11/7/00 2,500,000
1,984 SBA (Final Maturity 10/25/22)............ 7.00 1/1/01 1,981,746
2,941 SBA (Final Maturity 11/25/21)............ 7.13 1/1/01 2,939,506
2,855 SBA (Final Maturity 2/25/23)............. 7.00 1/1/01 2,855,344
1,663 SBA (Final Maturity 2/25/23)............. 7.00 1/1/01 1,663,445
332 SBA (Final Maturity 5/25/21)............. 7.00 1/1/01 331,317
3,231 SBA (Final Maturity 9/25/23)............. 6.88 1/1/01 3,230,544
-----------------------------------------------------------------------------------------
21,337,060
TOTAL FEDERAL AGENCY SECURITIES--VARIABLE
-----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD
& POORS
RATING MATURITY
(Unaudited) DATE
----------- ---------
<C> <S> <C> <C> <C> <C>
VARIABLE MONEY MARKET CERTIFICATES(b)--8.3%
2,500 National Rural Utilities Corp............ AA- 6.73 1/20/01 2,500,000
2,500 Special Purpose Accounts Receivable
Cooperative Corp......................... A-1 6.64 2/1/01 2,500,000
<CAPTION>
STANDARD
FACE & POORS
VALUE RATING INTEREST MATURITY
(000) DESCRIPTION (Unaudited) RATE DATE VALUE
------- ----------- ----------- -------- --------- ------------
<C> <S> <C> <C> <C> <C>
2,500 Bavaria Universal Funding Corp........... A-1 6.61% 4/17/01 $ 2,500,000
1,500 AT&T Corp................................ A-1+ 6.61 6/14/01 1,498,981
2,750 AT&T Corp................................ A-1+ 6.63 6/14/01 2,749,483
3,500 Associates Corporation of North
America.................................. A+ 6.78 8/27/01 3,503,023
--------------------------------------------------------------------------------------------------
15,251,487
TOTAL VARIABLE MONEY MARKET CERTIFICATES
--------------------------------------------------------------------------------------------------
COMMERCIAL PAPER--69.1%
4,115 CIESCO LP................................ A-1+ 6.63 11/1/00 4,115,000
366 Heinz (H.J.) Co.......................... A-1 6.50 11/1/00 366,000
3,500 Receivables Capital Corp................. A-1+ 6.56 11/1/00 3,500,000
2,500 International Lease Finance Corp......... A-1+ 6.60 11/2/00 2,500,000
1,514 Ford Motor Credit Co..................... A-1 6.50 11/6/00 1,512,633
1,000 Pfizer, Inc.............................. A-1+ 6.50 11/6/00 999,097
650 Gannett Co., Inc......................... A-1 6.50 11/8/00 649,178
2,800 Gannett Co., Inc......................... A-1 6.51 11/8/00 2,796,456
800 Gannett Co., Inc......................... A-1 6.52 11/8/00 798,986
450 General Electric Capital Corp............ A-1+ 6.50 11/8/00 449,431
3,000 SBC Communications, Inc.................. A-1+ 6.50 11/8/00 2,996,208
2,871 Honeywell International, Inc............. A-1 6.50 11/9/00 2,866,853
2,605 Kellogg Co............................... A-1+ 6.55 11/9/00 2,601,208
2,500 Receivables Capital Corp................. A-1+ 6.52 11/9/00 2,496,378
2,500 Bavaria Universal Funding Corp........... A-1 6.52 11/10/00 2,495,925
1,490 Household Finance Corp................... A-1 6.55 11/10/00 1,487,560
</TABLE>
See Notes to Financial Statements 41
<PAGE>
Phoenix-Goodwin Money Market Fund
<TABLE>
<CAPTION>
STANDARD
FACE & POORS
VALUE RATING INTEREST MATURITY
(000) DESCRIPTION (Unaudited) RATE DATE VALUE
------- ----------- ----------- -------- --------- ------------
<C> <S> <C> <C> <C> <C>
3,500 National Rural Utilities Corp............ A-1+ 6.48% 11/13/00 $ 3,492,440
100 Campbell Soup Co......................... A-1+ 6.50 11/14/00 99,765
850 Gannett Co., Inc......................... A-1 6.50 11/14/00 848,005
545 Private Export Funding Corp.............. A-1+ 6.50 11/15/00 543,622
1,486 Receivables Capital Corp................. A-1+ 6.55 11/15/00 1,482,215
2,500 Special Purpose Accounts Receivable
Cooperative Corp......................... A-1 6.52 11/15/00 2,493,661
3,300 Associates Corporation of North
America.................................. A-1 6.57 11/16/00 3,290,966
2,000 Special Purpose Accounts Receivable
Cooperative Corp......................... A-1 6.53 11/16/00 1,994,558
3,000 Ford Motor Credit Co..................... A-1 6.48 11/17/00 2,991,360
3,500 Private Export Funding Corp.............. A-1+ 6.53 11/17/00 3,489,842
2,500 Gannett Co., Inc......................... A-1 6.49 11/20/00 2,491,437
940 Gannett Co., Inc......................... A-1 6.50 11/20/00 936,775
3,460 Kimberly-Clark Corp...................... A-1+ 6.47 11/20/00 3,448,185
1,563 Gannett Co., Inc......................... A-1 6.50 11/21/00 1,557,356
1,400 General Electric Capital Corp............ A-1+ 6.50 11/21/00 1,394,944
2,000 Lexington Parker Capital Co. LLC......... A-1 6.52 11/21/00 1,992,756
2,355 SBC Communications, Inc.................. A-1+ 6.50 11/22/00 2,346,071
2,200 SBC Communications, Inc.................. A-1+ 6.51 11/27/00 2,189,656
2,500 Wisconsin Electric Power Co.............. A-1+ 6.48 11/27/00 2,488,300
970 Colgate-Palmolive Co..................... A-1 6.48 11/29/00 965,111
3,000 General Electric Capital Corp............ A-1+ 6.50 11/29/00 2,984,833
110 Merrill Lynch & Co....................... A-1+ 6.50 11/29/00 109,444
<CAPTION>
STANDARD
FACE & POORS
VALUE RATING INTEREST MATURITY
(000) DESCRIPTION (Unaudited) RATE DATE VALUE
------- ----------- ----------- -------- --------- ------------
<C> <S> <C> <C> <C> <C>
2,550 Campbell Soup Co......................... A-1+ 6.50% 12/6/00 $ 2,533,885
480 Dupont (E.I.) Denemours & Co............. A-1+ 6.53 12/6/00 476,953
3,000 General Electric Capital Corp............ A-1+ 6.56 12/6/00 2,980,867
3,000 Special Purpose Accounts Receivable
Cooperative Corp......................... A-1 6.52 12/6/00 2,980,983
489 Campbell Soup Co......................... A-1+ 6.62 12/7/00 485,763
800 Enterprise Funding Corp.................. A-1+ 6.69 12/7/00 794,648
1,188 Receivables Capital Corp................. A-1+ 6.51 12/7/00 1,180,266
2,500 Private Export Funding Corp.............. A-1+ 6.55 12/8/00 2,483,170
4,000 Bellsouth Telecommunications, Inc........ A-1+ 6.48 12/15/00 3,968,320
1,400 General Electric Capital Corp............ A-1+ 6.50 12/15/00 1,388,878
1,122 Receivables Capital Corp................. A-1+ 6.55 12/15/00 1,113,018
2,500 Kimberly-Clark Corp...................... A-1+ 6.46 12/18/00 2,478,915
366 Greenwich Funding Corp................... A-1+ 6.62 1/3/01 361,760
2,500 Preferred Receivables Funding Corp....... A-1 6.57 1/4/01 2,470,800
3,500 Bank of America Corp..................... A-1 6.58 1/11/01 3,454,580
175 AT&T Corp................................ A-1+ 6.52 1/12/01 172,718
2,500 Goldman Sachs Group L.P.................. A-1+ 6.52 1/19/01 2,464,231
2,500 Goldman Sachs Group L.P.................. A-1+ 6.56 1/19/01 2,464,011
2,610 Household Finance Corp................... A-1 6.53 1/30/01 2,567,392
3,000 Lexington Parker Capital Co. LLC......... A-1 6.50 3/1/01 2,935,000
2,910 Private Export Funding Corp.............. A-1+ 6.46 3/29/01 2,832,717
</TABLE>
42 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin Money Market Fund
<TABLE>
<CAPTION>
STANDARD
FACE & POORS
VALUE RATING INTEREST MATURITY
(000) DESCRIPTION (Unaudited) RATE DATE VALUE
------- ----------- ----------- -------- --------- ------------
<C> <S> <C> <C> <C> <C>
3,215 Honeywell International, Inc............. A-1 6.47% 3/30/01 $ 3,128,907
5,300 AT&T Corp................................ A-1+ 7.27 6/14/01 5,306,024
--------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER 127,286,021
--------------------------------------------------------------------------------------------------
MEDIUM-TERM NOTES(c)--2.9%
2,450 Associates Corporation of North
America.................................. A+ 5.85 1/15/01 2,445,792
2,000 Beta Finance............................. A+ 6.82 2/15/01 1,999,118
1,000 Bank of America Corp..................... A+ 5.75 3/15/01 996,511
--------------------------------------------------------------------------------------------------
TOTAL MEDIUM-TERM NOTES 5,441,421
--------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT--5.2%
3,500 Canadian Imperial Bank of Commerce....... AA- 6.66 11/1/00 3,500,000
<CAPTION>
STANDARD
FACE & POORS
VALUE RATING INTEREST MATURITY
(000) DESCRIPTION (Unaudited) RATE DATE VALUE
------- ----------- ----------- -------- --------- ------------
<C> <S> <C> <C> <C> <C>
3,500 Bank of America Corp..................... AA- 6.80% 12/1/00 $ 3,500,194
2,500 Canadian Imperial Bank of Commerce....... AA- 6.52 12/13/00 2,500,000
--------------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT 9,500,194
--------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--102.1%
(IDENTIFIED COST $188,097,008) 188,097,008(a)
Cash and receivables, less liabilities--(2.1%) (3,921,129)
------------
NET ASSETS--100.0% $184,175,879
============
</TABLE>
(a) Federal Income Tax Information: At October 31, 2000, the aggregate cost of
securities was the same for book and tax purposes.
(b) Variable or step coupon security; interest rate shown reflects the rate
currently in effect.
(c) The interest rate shown is the coupon rate.
See Notes to Financial Statements 43
<PAGE>
Phoenix-Goodwin Money Market Fund
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $188,097,008) $188,097,008
Cash 120,970
Receivables
Fund shares sold 1,263,296
Interest 973,740
Investment securities sold 348,390
Prepaid expenses 1,365
------------
Total assets 190,804,769
------------
LIABILITIES
Payables
Fund shares repurchased 6,252,429
Dividend distribution 172,650
Investment advisory fee 66,829
Transfer agent fee 33,390
Financial agent fee 17,434
Distribution fee 13,295
Trustees' fee 10,208
Accrued expenses 62,655
------------
Total liabilities 6,628,890
------------
NET ASSETS $184,175,879
============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $184,175,879
------------
NET ASSETS $184,175,879
============
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $164,125,101) 164,125,101
Net asset value and offering price per share $1.00
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $18,616,241) 18,616,241
Net asset value and offering price per share $1.00
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $1,434,537) 1,434,537
Net asset value and offering price per share $1.00
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 13,479,806
------------
Total investment income 13,479,806
------------
EXPENSES
Investment advisory fee 870,439
Distribution fee, Class B 146,443
Distribution fee, Class C 8,750
Financial agent fee 212,837
Transfer agent 470,675
Registration 63,531
Custodian 41,124
Printing 36,009
Professional 27,093
Trustees 24,500
Miscellaneous 10,535
------------
Total expenses 1,911,936
Custodian fees paid indirectly (11,224)
------------
Net expenses 1,900,712
------------
NET INVESTMENT INCOME $ 11,579,094
============
</TABLE>
44 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin Money Market Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/00 10/31/99
-------------- --------------
<S> <C> <C>
FROM OPERATIONS
NET INVESTMENT INCOME (LOSS) $ 11,579,094 $ 9,868,732
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (10,631,671) (9,145,952)
Net investment income, Class B (907,312) (722,494)
Net investment income, Class C (40,111) (286)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (11,579,094) (9,868,732)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(1,338,655,413 and 1,899,144,846
shares, respectively) 1,338,655,413 1,899,144,846
Net asset value of shares issued from
reinvestment of distributions
(9,576,749 and 8,113,952 shares,
respectively) 9,576,749 8,113,952
Cost of shares repurchased
(1,389,172,903 and 1,897,484,874
shares, respectively) (1,389,172,903) (1,897,484,874)
------------ ------------
Total (40,940,741) 9,773,924
------------ ------------
CLASS B
Proceeds from sales of shares
(74,694,373 and 74,245,737 shares,
respectively) 74,694,373 74,245,737
Net asset value of shares issued from
reinvestment of distributions
(742,970 and 599,130 shares,
respectively) 742,970 599,130
Cost of shares repurchased (76,874,626
and 74,769,104 shares, respectively) (76,874,626) (74,769,104)
------------ ------------
Total (1,437,283) 75,763
------------ ------------
CLASS C
Proceeds from sales of shares
(4,634,976 and 144,728 shares,
respectively) 4,634,976 144,728
Net asset value of shares issued from
reinvestment of distributions
(34,202 and 194 shares,
respectively) 34,202 194
Cost of shares repurchased (3,379,563
and 0 shares, respectively) (3,379,563) --
------------ ------------
Total 1,289,615 144,922
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (41,088,409) 9,994,609
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (41,088,409) 9,994,609
NET ASSETS
Beginning of period 225,264,288 215,269,679
------------ ------------
END OF PERIOD $184,175,879 $225,264,288
============ ============
</TABLE>
See Notes to Financial Statements 45
<PAGE>
Phoenix-Goodwin Money Market Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------
YEAR ENDED OCTOBER 31
-----------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.054 0.044 0.049 0.048 0.047
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.054 0.044 0.049 0.048 0.047
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.054) (0.044) (0.049) (0.048) (0.047)
--------- --------- --------- --------- ---------
Change in net asset value -- -- -- -- --
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total return(1) 5.59% 4.47% 5.00% 4.76% 4.67%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $164,125 $205,066 $195,292 $188,695 $192,859
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 0.80%(3) 0.77%(3) 0.73% 0.79% 0.84%
Net investment income 5.41% 4.41% 4.90% 4.76% 4.68%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------
YEAR ENDED OCTOBER 31
-----------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.047 0.036 0.041 0.040 0.039
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.047 0.036 0.041 0.040 0.039
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.047) (0.036) (0.041) (0.040) (0.039)
--------- --------- --------- --------- ---------
Change in net asset value -- -- -- -- --
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total return(1) 4.80% 3.69% 4.22% 4.02% 3.93%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $18,616 $20,054 $19,978 $15,013 $10,223
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.56%(3) 1.52%(3) 1.48% 1.55% 1.59%
Net investment income 4.65% 3.66% 4.15% 4.02% 3.92%
<CAPTION>
CLASS C
-----------------------
FROM
INCEPTION
YEAR 10/12/99
ENDED TO
10/31/00 10/31/99
<S> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.044 0.003
------ -------
TOTAL FROM INVESTMENT OPERATIONS 0.044 0.003
------ -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.044) (0.003)
------ -------
Change in net asset value -- --
------ -------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00
====== =======
Total return(1) 4.55% 0.19%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,435 $145
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.83%(3) 1.82%(1)(3)
Net investment income 4.56% 3.95%(1)
</TABLE>
(1) Annualized.
(2) Not annualized.
(3) 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.
46 See Notes to Financial Statements
<PAGE>
PHOENIX-OAKHURST BALANCED FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM
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, 1999 to October 31, 2000, the market represented by the
large-cap S&P 500 Index(1) returned a total of 6.05%. During the past 12 months,
we have witnessed unprecedented volatility and two distinctly different moods in
the equity market. It was indeed the best of times and worst of times. It was a
tale of two markets. The peak in the S&P during this period was reached on March
24. From October 31, 1999 to March 24, 2000, the S&P returned 12.63%. However,
the S&P's total return was a negative 5.81% from March 24 through October 31 of
2000. During the first period, investors were enthusiastic about the economy.
Technology stocks were especially favored during this time. It was thought that
the advance of Internet technology would unleash great gains in productivity.
Hence, spending on Internet-enabling technologies would grow at elevated levels
for extended periods. During the second period, investors increasingly came to
the realization that the economy would slow as the Federal Reserve embarked in a
series of interest rate hikes. As a result, technology stocks began to correct
from very high valuation levels.
Performance leaders were also quite distinct for the above-mentioned two
periods. Technology was the singular focus of investors before mid-March.
Companies involved in telecommunication equipment, Internet software and
semiconductors were bid up to extremely high levels. From October 31, 1999 to
March 10, 2000, the Nasdaq(2) composite, heavily populated by technology issues,
was up 70.3%. However, from March 10 through October 31, 2000, the Nasdaq has
since corrected 33.2%. As technology stocks were falling, investors sought other
areas of relative earnings stability. Since March, health-care stocks performed
extremely well. Drug stocks continued to deliver stable earnings growth. HMOs
were able to raise prices above their cost inflation. With surging oil prices
and a shortage of electrical generating capacity, oil companies and utility
stocks performed strongly.
Q: HOW DID THE FUND PERFORM IN THIS ENVIRONMENT?
A: The Phoenix-Oakhurst Balanced Fund Class A shares returned 7.13% and Class B
shares returned 6.29% for the fiscal year ended October 31, 2000 compared with a
return of 6.86% for a benchmark index.(3) All performance figures assume
reinvestment of distributions and exclude the effect of sales charges.
(1) THE S&P 500 INDEX MEASURES STOCK MARKET TOTAL-RETURN PERFORMANCE.
(2) THE NASDAQ INDEX MEASURES TECHNOLOGY-ORIENTED STOCK TOTAL-RETURN
PERFORMANCE.
THE INDICES ARE UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT.
(3) THE BENCHMARK INDEX IS MADE UP OF 60% OF THE S&P 500 INDEX AND 40% OF THE
LEHMAN BROTHERS AGGREGATE BOND INDEX. THE LEHMAN BROTHERS AGGREGATE BOND
INDEX MEASURES BROAD BOND MARKET TOTAL-RETURN PERFORMANCE. THE INDICES ARE
UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT.
47
<PAGE>
PHOENIX-OAKHURST BALANCED FUND (CONTINUED)
The equity portion of the Phoenix-Oakhurst Balanced Fund performed quite
well during the past 12 months. With good diversification and stock picking,
returns were steady relative to the S&P all year. During the first period before
March, equity performance lagged the S&P slightly as we believed technology
stocks were overvalued and hence the portfolio was under represented in such
issues. As technology stocks began to correct after March, our overweighting in
health-care and energy stocks allowed the Fund to outperform the S&P 500.
The bond portion of the Fund also performed well over the reporting period.
Some of the best contributors to performance were our holdings in commercial
mortgage-backed securities and taxable municipals.
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?
A: Our outlook for the equity market has become increasingly positive. As the
economy slows, corporate profit is inevitably slowing as well. We are seeing
more earnings disappointments today than the past 12 months. However, stock
valuation in selected areas has become attractive, which provides a more fertile
ground for stock-picking. In addition, with the Fed funds rate at 6.5%, we
believe that any serious slowdown in the economy would cause the Federal Reserve
to lower interest rate aggressively. This would lend support for equity
valuations.
We believe the outlook for the fixed-income markets is favorable for
long-term investors. Our favorable long-term outlook for fixed-income as an
asset class, particularly in the non-Treasury sectors, is driven by a
combination of attractive valuations and improving fundamentals. The bond
markets should benefit from a slowing economy, moderating core inflation and a
less restrictive Federal Reserve policy. While we are bullish on bonds long
term, our near-term outlook is cautious given the volatility associated with
such variables as energy prices and the direction of the euro.
NOVEMBER 27, 2000
48
<PAGE>
Phoenix-Oakhurst Balanced Fund
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 10/31/00
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR 5 YEARS 10 YEARS TO 10/31/00 DATE
------- -------- -------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Class A Shares at NAV(2) 7.13% 12.44% 11.83% -- --
Class A Shares at POP(3) 0.97 11.12 11.17 -- --
Class B Shares at NAV(2) 6.29 11.60 -- 11.56% 7/15/94
Class B Shares with CDSC(4) 2.37 11.60 -- 11.56 7/15/94
Balanced Benchmark(7) 6.86 15.67 14.96 16.28 Note 5
S&P 500 Index(8) 6.05 21.75 19.48 22.24 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 5.75% 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 10/31/00.
(6) This chart illustrates POP returns on Class A shares for ten years. Returns
on Class B shares will vary due to differing sales charge.
(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 S&P 500 Index is an unmanaged, commonly used measure of stock market
total return performance. The index 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.
GROWTH OF $10,000 PERIODS ENDING 10/31
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PHOENIX-OAKHURST
BALANCED FUND BALANCED S&P
CLASS A(6) BENCHMARK(7) 500
INDEX(8)
<S> <C> <C> <C>
10/90 $ 9,425 $ 10,000 $ 10,000
10/91 $ 11,900 $ 12,632 $ 13,351
10/92 $ 13,062 $ 13,903 $ 14,680
10/93 $ 14,357 $ 15,812 $ 16,867
10/94 $ 13,887 $ 15,951 $ 17,530
10/95 $ 16,041 $ 19,471 $ 22,161
10/96 $ 17,971 $ 22,707 $ 27,523
10/97 $ 21,214 $ 27,865 $ 36,421
10/98 $ 23,056 $ 32,732 $ 44,439
10/99 $ 26,913 $ 37,725 $ 55,899
10/00 $ 28,832 $ 40,312 $ 59,281
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
10/31/90 in Class A and reflects the maximum sales charge of 5.75% 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 10/31/00
As a percentage of equity holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 27%
Financials 19%
Health-Care 12%
Consumer Staples 12%
Capital Goods 12%
Energy 8%
Consumer Cyclicals 5%
Other 5%
</TABLE>
49
<PAGE>
Phoenix-Oakhurst Balanced Fund
TEN LARGEST EQUITY HOLDINGS AT OCTOBER 31, 2000 (AS A PERCENTAGE OF TOTAL NET
ASSETS)
<TABLE>
<C> <S> <C>
1. General Electric Co. 3.0%
DEVELOPS, MANUFACTURES AND MARKETS A VARIETY OF CONSUMER
AND INDUSTRIAL PRODUCTS
2. Tyco International Ltd. (Bermuda) 2.7%
DIVERSIFIED MANUFACTURING AND SERVICE COMPANY
3. Microsoft Corp. 2.3%
PRODUCES SOFTWARE FOR MICROCOMPUTERS
4. Citigroup, Inc. 2.2%
DIVERSIFIED FINANCIAL SERVICES COMPANY
5. PepsiCo, Inc. 2.0%
MARKETS SOFT DRINKS AND SNACK FOODS
6. International Business Machines Corp. 1.9%
LARGEST MANUFACTURER OF BUSINESS MACHINES
7. American International Group, Inc. 1.9%
INTERNATIONAL INSURANCE HOLDING COMPANY
8. Pfizer, Inc. 1.6%
CONSUMER HEALTH CARE AND SPECIALTY CHEMICAL MANUFACTURER
9. Morgan Stanley Dean Witter & Co. 1.6%
FINANCIAL SERVICES PROVIDER
10. Compaq Computer Corp. 1.6%
MANUFACTURER OF COMPUTER SYSTEMS
</TABLE>
INVESTMENTS AT OCTOBER 31, 2000
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- --------------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--0.9%
U.S. TREASURY BONDS--0.1%
U.S. Treasury Bonds 5.25%, 2/15/29...... AAA $ 750 $ 683,470
U.S. TREASURY NOTES--0.8%
U.S. Treasury Notes 6%, 8/15/09......... AAA 12,020 12,144,803
--------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES
(IDENTIFIED COST $12,327,793) 12,828,273
--------------------------------------------------------------------------------
AGENCY MORTGAGE-BACKED SECURITIES--3.7%
Fannie Mae 7.125%, 2/15/05.............. AAA 2,000 2,044,576
GNMA 6.50%, '23-'28..................... AAA 53,731 52,370,136
--------------------------------------------------------------------------------
TOTAL AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $54,655,839) 54,414,712
--------------------------------------------------------------------------------
AGENCY NON MORTGAGE-BACKED
SECURITIES--2.1%
Fannie Mae 6.625%, 9/15/09,
9/15/09................................. AAA 15,740 15,676,615
Freddie Mac 6.625%, 9/15/09,
9/15/09................................. AAA 15,000 14,888,925
--------------------------------------------------------------------------------
TOTAL AGENCY NON MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $30,704,468) 30,565,540
--------------------------------------------------------------------------------
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- --------------
<S> <C> <C> <C>
MUNICIPAL BONDS--6.3%
CALIFORNIA--2.0%
Alameda Corridor Transportation
Authority Revenue Taxable Series C
6.50%, 10/1/19.......................... AAA $ 1,100 $ 977,801
Alameda Corridor Transportation
Authority Revenue Taxable Series C
6.60%, 10/1/29.......................... AAA 2,750 2,411,365
Fresno County Pension Obligation Revenue
Taxable 6.21%, 8/15/06.................. AAA 3,820 3,685,994
Kern County Pension Obligation Revenue
Taxable 7.26%, 8/15/14.................. AAA 2,580 2,537,868
Los Angeles County Pension Obligation
Taxable Series A 8.49% 6/30/04.......... AAA 2,000 2,107,560
Pasadena Pension Funding Revenue Taxable
Series A 6.95%, 5/15/07................. AAA 1,915 1,907,168
Pasadena Pension Funding Revenue Taxable
Series A 7%, 5/15/08.................... AAA 3,435 3,414,390
Pasadena Pension Funding Revenue Taxable
Series A 7.05%, 5/15/09................. AAA 2,500 2,479,450
Pasadena Pension Funding Revenue Taxable
Series A 7.15%, 5/15/11................. AAA 565 558,226
</TABLE>
50 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Balanced Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- --------------
<S> <C> <C> <C>
CALIFORNIA--CONTINUED
San Bernardino County Pension Obligation
Revenue Taxable 6.87%, 8/1/08........... AAA $ 1,530 $ 1,508,825
Sonoma County Pension Obligation Revenue
Taxable 6.625%, 6/1/13.................. AAA 4,265 3,993,021
Ventura County Pension Obligation
Taxable 6.58%, 11/1/06.................. AAA 3,560 3,495,920
--------------
29,077,588
--------------
COLORADO--0.2%
Denver City and County School District
01 Pension Taxable 6.76%, 12/15/07...... AAA 2,000 1,970,440
FLORIDA--1.1%
Miami Beach Special Obligation Revenue
Taxable 8.60%, 9/1/21................... AAA 11,675 12,250,461
Tampa Solid Waste System Revenue Taxable
Series A 6.23%, 10/1/05................. AAA 1,970 1,900,026
University of Miami Exchangeable Revenue
Taxable Series A 7.65%, 4/1/20.......... AAA 2,120 2,056,167
--------------
16,206,654
--------------
MASSACHUSETTS--0.2%
Massachusetts Port Authority Revenue
Taxable Series C 6.05%, 7/1/02.......... AA- 3,340 3,307,535
NEW JERSEY--0.3%
New Jersey Sports & Exposition Authority
Taxable Series A 6.75%, 3/01/12......... AAA 5,000 4,762,550
NEW YORK--0.6%
New York State Taxable Series C 6.35%,
3/1/07.................................. AAA 9,290 8,970,331
OREGON--0.3%
Multnomah County Pension Revenue Taxable
7.25%, 6/01/11.......................... Aaa(d) 3,000 2,985,690
Portland Pension Revenue Taxable Series
C 7.32%, 6/1/08......................... Aaa(d) 1,000 1,012,470
--------------
3,998,160
--------------
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- --------------
<S> <C> <C> <C>
PENNSYLVANIA--1.1%
Philadelphia Authority For Industrial
Development Pension Funding Retirement
Systems Revenue Taxable Series A 5.79%,
4/15/09................................. AAA $ 8,500 $ 7,759,565
Pittsburgh Pension Obligation Taxable
Series C 6.50%, 3/1/17.................. AAA 9,245 8,326,324
--------------
16,085,889
--------------
TEXAS--0.5%
Dallas-Fort Worth International Airport
Facilities Improvement Revenue Taxable
6.50%, 11/1/09.......................... AAA 1,900 1,815,545
Dallas-Fort Worth International Airport
Facilities Improvement Revenue Taxable
6.60%, 11/1/12.......................... AAA 5,750 5,404,425
--------------
7,219,970
--------------
--------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $95,544,649) 91,599,117
--------------------------------------------------------------------------------
ASSET-BACKED SECURITIES--3.8%
AESOP Funding II LLC 97-1A, A2 6.40%,
10/20/03................................ AAA 9,250 9,206,560
Associates Manufactured Housing Pass
Through 97-2, A6 7.075%, 3/15/28........ AAA 3,000 2,899,413
Capita Equipment Receivables Trust 97-1,
B 6.45%, 8/15/02........................ A+ 5,020 4,988,625
Case Equipment Loan Trust 98-A, A4
5.83%, 2/15/05.......................... AAA 8,280 8,198,345
Ford Credit Auto Owner Trust 99-B, A4
5.80%, 6/15/02.......................... AAA 3,000 2,985,234
Green Tree Financial Corp. 96-2, M1
7.60%, 4/15/27.......................... AA- 9,250 9,034,483
Honda Auto Lease Trust 99-A, A5 6.65%,
7/15/05................................. AAA 5,500 5,479,481
Premier Auto Trust 98-3, B 6.14%,
9/8/04.................................. A+ 4,000 3,949,413
</TABLE>
See Notes to Financial Statements 51
<PAGE>
Phoenix-Oakhurst Balanced Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- --------------
<S> <C> <C> <C>
Triangle Funding Ltd. 98-2A, 3 8.65%,
10/15/04(e)............................. BBB $ 8,000 $ 7,972,688
--------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $55,379,905) 54,714,242
--------------------------------------------------------------------------------
CORPORATE BONDS--4.6%
AIRLINES--0.3%
Northwest Airlines Corp. Series 00-1, G
8.072%, 10/1/19......................... AAA 3,620 3,739,532
BANKS (MAJOR REGIONAL)--0.4%
U.S. Bank of Minnesota N.A. 6.30%,
7/15/08................................. A 3,000 2,771,880
Wachovia Corp. 5.625%, 12/15/08......... A+ 3,000 2,659,944
--------------
5,431,824
--------------
BROADCASTING (TELEVISION, RADIO & CABLE)--0.3%
CSC Holdings, Inc. 7.25%, 7/15/08....... BB+ 2,665 2,477,086
Charter Communications Holdings LLC
8.625%, 4/1/09.......................... B+ 2,000 1,810,000
--------------
4,287,086
--------------
COMMUNICATIONS EQUIPMENT--0.1%
Williams Communications Group, Inc.
10.875%, 10/1/09........................ B+ 2,350 1,991,625
COMPUTERS (SOFTWARE & SERVICES)--0.2%
Computer Associates International, Inc.
Series B 6.375%, 4/15/05................ BBB+ 3,590 3,316,560
ENTERTAINMENT--0.3%
Capitol Records, Inc. 144A 8.375%,
8/15/09(c).............................. BBB+ 4,600 4,749,058
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--0.7%
Horseshoe Gaming Holdings Corp. Series B
8.625%, 5/15/09......................... B+ 2,500 2,425,000
Isle of Capri Casinos, Inc. 8.75%,
4/15/09................................. B 2,000 1,825,000
MGM Mirage, Inc. 9.75%, 6/1/07.......... BB+ 1,650 1,691,250
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- --------------
<S> <C> <C> <C>
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--CONTINUED
Park Place Entertainment Corp. 9.375%,
2/15/07................................. BB+ $ 4,000 $ 4,030,000
--------------
9,971,250
--------------
HEALTH CARE (HOSPITAL MANAGEMENT)--0.2%
Tenet Healthcare Corp. 8%, 1/15/05...... BB+ 3,365 3,327,144
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.2%
Boston Scientific Corp. 6.625%,
3/15/05................................. BBB 3,250 3,051,796
HEALTH CARE (SPECIALIZED SERVICES)--0.2%
HEALTHSOUTH Corp. 144A 10.75%,
10/1/08(c).............................. BB+ 2,500 2,520,555
INSURANCE (MULTI-LINE)--0.0%
Willis Corroon Corp. 9%, 2/1/09......... B+ 740 675,250
LEISURE TIME (PRODUCTS)--0.2%
Bally Total Fitness Holding Corp. Series
D 9.875%, 10/15/07...................... B- 2,900 2,711,500
PAPER & FOREST PRODUCTS--0.2%
Buckeye Technologies, Inc. 9.25%,
9/15/08................................. BB- 2,265 2,276,325
RETAIL (FOOD CHAINS)--0.1%
Kroger Co. 7.45%, 3/1/08................ BBB- 1,290 1,248,880
SERVICES (COMMERCIAL & CONSUMER)--0.1%
United Rentals, Inc. Series B 8.80%,
8/15/08................................. BB- 1,570 1,263,850
United Rentals, Inc. Series B 9.50%,
6/1/08.................................. BB- 935 771,375
--------------
2,035,225
--------------
SHIPPING--0.2%
Teekay Shipping Corp. 8.32%, 2/1/08..... BB+ 2,640 2,508,000
TELECOMMUNICATIONS (LONG DISTANCE)--0.1%
Nextlink Communications, Inc. 10.75%,
11/15/08................................ B 2,000 1,760,000
TELEPHONE--0.5%
Century Telephone Enterprises, Inc.
Series F 6.30%, 1/15/08................. BBB+ 3,000 2,652,582
</TABLE>
52 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Balanced Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- --------------
<S> <C> <C> <C>
TELEPHONE--CONTINUED
Qwest Communications International, Inc.
Series B 7.50%, 11/1/08................. BB+ $ 4,300 $ 4,257,258
--------------
6,909,840
--------------
TEXTILES (HOME FURNISHINGS)--0.2%
Westpoint Stevens, Inc. 7.875%,
6/15/05................................. BB 3,465 2,581,425
TRUCKS & PARTS--0.1%
Cummins Engine, Inc. 6.45%, 3/1/05...... BBB+ 2,060 1,892,436
--------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $70,612,631) 66,985,311
--------------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED
SECURITIES--8.7%
CS First Boston Mortgage Securities
Corp. 97-C2, B 6.72%, 11/17/07.......... Aa(d) 9,000 8,738,964
CS First Boston Mortgage Securities
Corp. 98-C1, A1B 6.48%, 5/17/08......... AAA 7,900 7,613,277
Commercial Mortgage Asset Trust 99-C1 D
7.35%, 10/17/13......................... BBB 2,100 1,926,750
DLJ Commercial Mortgage Corp. 98-CF2,
A1B 6.24%, 11/12/31..................... Aaa(d) 3,000 2,847,187
DLJ Commercial Mortgage Corp. 99-CG1,
A1B 6.46%, 1/10/09...................... Aaa(d) 10,300 9,894,437
DLJ Mortgage Acceptance Corp. 96-CF1,
A1B 7.58%, 2/12/06...................... AAA 6,550 6,638,016
DLJ Mortgage Acceptance Corp. 97-CF2, A2
6.84%, 9/15/07.......................... AA 750 732,422
First Union - Lehman Brothers Commercial
Mortgage 97-C1, B 7.43%, 4/18/07........ Aa(d) 11,807 11,880,751
Fleet Credit Card Master Trust II,
2000-C Class A 7.02%, 2/15/08........... AAA 8,135 8,225,063
G.E. Capital Mortgage Services, Inc.
96-8, 1M 7.25%, 5/25/26................. AA 5,158 5,035,124
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- --------------
<S> <C> <C> <C>
GMAC Commercial Mortgage Securities,
Inc. 97-C2, B 6.703%, 12/15/07.......... Aa(d) $ 5,000 $ 4,782,812
LB Commercial Conduit Mortgage Trust
98-C4, A1B 6.21%, 10/15/08.............. AAA 10,060 9,556,073
LB Commercial Conduit Mortgage Trust
99-C2, A2 7.325%, 9/15/09............... Aaa(d) 4,855 4,888,378
Lehman Large Loan 97-LLI, B 6.95%,
3/12/07................................. AA+ 10,825 10,540,844
Nationslink Funding Corp. 96-1, B 7.69%,
12/20/05................................ AA 6,157 6,257,513
Prudential Home Mortgage Securities
93-L, 2B3 6.641%, 12/25/23.............. A(d) 5,000 4,870,313
Residential Funding Mortgage Securities
I 96-S1, A11 7.10%, 1/25/26............. AAA 6,600 6,404,063
Residential Funding Mortgage Securities
I 96-S4, M1 7.25%, 2/25/26.............. AA 5,675 5,527,572
Residential Funding Mortgage Securities
I 96-S8, A4 6.75%, 3/25/11.............. AAA 1,752 1,702,661
Securitized Asset Sales, Inc. 93-J, 2B
6.808%, 11/28/23........................ AAA(d) 9,054 8,767,855
--------------------------------------------------------------------------------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $129,017,898) 126,830,075
--------------------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--4.5%
CHILE--0.5%
Republic of Chile 6.875% 04/28/09....... A- 8,200 7,582,433
CROATIA--0.6%
Croatia Series A 7.75%, 7/31/10(e)...... BBB- 5,277 4,881,474
Croatia Series B 7.75%, 7/31/06(e)...... BBB- 4,111 3,915,572
--------------
8,797,046
--------------
EL SALVADOR--0.5%
Republic of El Salvador 144A 9.50%,
8/15/06(c).............................. BB+ 7,000 7,280,000
MEXICO--1.1%
United Mexican States Global Bond
10.375%, 2/17/09........................ BB+ 4,500 4,792,500
</TABLE>
See Notes to Financial Statements 53
<PAGE>
Phoenix-Oakhurst Balanced Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- --------------
<S> <C> <C> <C>
MEXICO--CONTINUED
United Mexican States Global Bond
11.375%, 9/15/16........................ BB+ $ 1,000 $ 1,135,750
United Mexican States Global Bond
11.50%, 5/15/26......................... BB+ 8,675 10,249,512
--------------
16,177,762
--------------
POLAND--1.1%
Poland Bearer PDI 6%, 10/27/14(e)....... BBB+ 17,470 16,170,669
SOUTH KOREA--0.3%
Republic of Korea 8.875%, 4/15/08....... BBB 4,000 4,180,000
URUGUAY--0.4%
Republic of Uruguay 7.25%, 5/4/09....... BBB- 6,900 6,141,000
--------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(IDENTIFIED COST $65,824,821) 66,328,910
--------------------------------------------------------------------------------
FOREIGN CORPORATE BONDS--2.0%
BERMUDA--0.2%
Global Crossing Holdings Ltd. 9.125%,
11/15/06................................ BB 3,000 2,876,250
CAYMAN ISLANDS--0.4%
Pemex Finance Ltd. 7.33%, 5/15/12....... AAA 5,225 5,223,955
CHILE--0.4%
Compania Sud Americana de Vapores 144A
7.375%, 12/8/03(c)...................... BBB 4,500 4,355,820
Petropower I Funding Trust 144A 7.36%,
2/15/14(c).............................. BBB 2,368 2,074,877
--------------
6,430,697
--------------
LUXEMBOURG--0.4%
Tyco International Group SA 6.375%,
6/15/05................................. A- 6,700 6,482,739
MEXICO--0.2%
Cemex SA de CV 144A 8.625%,
7/18/03(c).............................. BBB- 500 500,000
Grupo Iusacell SA de CV 14.25%,
12/1/06................................. B+ 2,000 2,020,000
--------------
2,520,000
--------------
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- --------------
<S> <C> <C> <C>
NETHERLANDS--0.4%
Deutsche Telekom International Finance
BV 8%, 6/15/10.......................... A- $ 3,300 $ 3,370,815
HSBC Capital Funding LP 144A 9.547%,
12/29/49(c)............................. A- 2,000 2,120,660
--------------
5,491,475
--------------
--------------------------------------------------------------------------------
TOTAL FOREIGN CORPORATE BONDS
(IDENTIFIED COST $29,238,912) 29,025,116
--------------------------------------------------------------------------------
<CAPTION>
SHARES
--------
PREFERRED STOCKS--0.5%
<S> <C> <C> <C>
AGENCY NON MORTGAGE-BACKED SECURITIES--0.5%
Home Ownership Funding 2, Step-down Pfd.
144A 13.338%(c)(e)...................... 10,000 7,606,000
--------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $7,888,165) 7,606,000
--------------------------------------------------------------------------------
COMMON STOCKS--51.7%
AEROSPACE/DEFENSE--0.7%
General Dynamics Corp................... 135,000 9,660,937
BANKS (MAJOR REGIONAL)--1.9%
FleetBoston Financial Corp.............. 344,000 13,072,000
Wells Fargo & Co........................ 303,600 14,060,475
--------------
27,132,475
--------------
BANKS (MONEY CENTER)--1.1%
Bank of America Corp.................... 338,500 16,269,156
BROADCASTING (TELEVISION, RADIO & CABLE)--1.3%
AT&T Corp.- Liberty Media Corp.
Class A(b).............................. 333,400 6,001,200
Clear Channel Communications, Inc.(b)... 222,470 13,362,104
--------------
19,363,304
--------------
CHEMICALS--0.4%
Du Pont (E.I.) de Nemours & Co.......... 140,000 6,352,500
</TABLE>
54 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Balanced Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- --------------
<S> <C> <C> <C>
CHEMICALS (SPECIALTY)--0.2%
Ecolab, Inc............................. 65,000 $ 2,547,187
COMMUNICATIONS EQUIPMENT--2.1%
ADC Telecommunications, Inc.(b)......... 293,000 6,262,875
ADTRAN, Inc.(b)......................... 194,400 7,387,200
Corning, Inc............................ 48,300 3,694,950
Harris Corp............................. 155,000 4,911,562
Tellabs, Inc.(b)........................ 171,100 8,544,306
--------------
30,800,893
--------------
COMPUTERS (HARDWARE)--3.5%
Compaq Computer Corp.................... 767,800 23,348,798
International Business Machines Corp.... 284,400 28,013,400
--------------
51,362,198
--------------
COMPUTERS (NETWORKING)--1.6%
Cisco Systems, Inc.(b).................. 425,900 22,945,362
COMPUTERS (SOFTWARE & SERVICES)--3.6%
Affiliated Computer Services, Inc.(b)... 80,000 4,455,000
America Online, Inc.(b)................. 209,800 10,580,214
American Management Systems, Inc.(b).... 172,100 3,721,662
Microsoft Corp.(b)...................... 496,600 34,203,325
--------------
52,960,201
--------------
DISTRIBUTORS (FOOD & HEALTH)--1.4%
Cardinal Health, Inc.................... 210,900 19,982,775
ELECTRIC COMPANIES--0.6%
Duke Energy Corp........................ 95,000 8,211,562
ELECTRICAL EQUIPMENT--3.0%
General Electric Co..................... 787,200 43,148,400
ELECTRONICS (INSTRUMENTATION)--0.5%
Waters Corp.(b)......................... 104,800 7,604,550
ELECTRONICS (SEMICONDUCTORS)--1.2%
Intel Corp.............................. 144,500 6,502,500
Micron Technology, Inc.(b).............. 334,300 11,616,925
--------------
18,119,425
--------------
ENTERTAINMENT--0.9%
Viacom, Inc. Class B(b)................. 234,034 13,310,684
FINANCIAL (DIVERSIFIED)--4.5%
Citigroup, Inc.......................... 599,801 31,564,528
Freddie Mac............................. 172,000 10,320,000
<CAPTION>
SHARES VALUE
-------- --------------
<S> <C> <C> <C>
FINANCIAL (DIVERSIFIED)--CONTINUED
Morgan Stanley Dean Witter & Co......... 291,800 $ 23,435,187
--------------
65,319,715
--------------
FOODS--2.3%
Dean Foods Co........................... 85,000 2,720,000
PepsiCo, Inc............................ 590,500 28,602,344
Suiza Foods Corp.(b).................... 55,000 2,547,187
--------------
33,869,531
--------------
HEALTH CARE (DIVERSIFIED)--2.0%
Abbott Laboratories..................... 314,300 16,598,969
Bristol-Myers Squibb Co................. 195,500 11,913,281
--------------
28,512,250
--------------
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--2.4%
Pfizer, Inc............................. 543,000 23,450,813
QLT, Inc.(b)............................ 29,800 1,482,084
Schering-Plough Corp.................... 196,500 10,156,594
--------------
35,089,491
--------------
HEALTH CARE (GENERIC AND OTHER)--0.9%
Alpharma, Inc. Class A.................. 98,000 3,803,625
King Pharmaceuticals, Inc.(b)........... 203,600 9,123,825
--------------
12,927,450
--------------
HEALTH CARE (HOSPITAL MANAGEMENT)--0.7%
HCA-The Healthcare Co................... 155,000 6,190,313
Health Management Associates, Inc. Class
A(b).................................... 218,500 4,329,031
--------------
10,519,344
--------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.5%
Bard (C.R.), Inc........................ 191,000 7,998,125
HOUSEHOLD PRODUCTS (NON-DURABLE)--0.4%
Kimberly-Clark Corp..................... 89,000 5,874,000
INSURANCE (MULTI-LINE)--1.9%
American International Group, Inc....... 284,200 27,851,600
OIL & GAS (DRILLING & EQUIPMENT)--1.8%
Baker Hughes, Inc....................... 124,700 4,286,563
Diamond Offshore Drilling, Inc.......... 88,200 3,048,413
Halliburton Co.......................... 99,500 3,687,719
Schlumberger Ltd........................ 57,000 4,339,125
</TABLE>
See Notes to Financial Statements 55
<PAGE>
Phoenix-Oakhurst Balanced Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- --------------
<S> <C> <C> <C>
OIL & GAS (DRILLING & EQUIPMENT)--CONTINUED
Tidewater, Inc.......................... 141,800 $ 6,549,388
Transocean Sedco Forex, Inc............. 93,999 4,981,947
--------------
26,893,155
--------------
OIL & GAS (EXPLORATION & PRODUCTION)--0.7%
Anadarko Petroleum Corp................. 87,700 5,617,185
Unocal Corp............................. 143,000 4,879,875
--------------
10,497,060
--------------
OIL (DOMESTIC INTEGRATED)--0.5%
Conoco, Inc. Class A.................... 309,200 7,981,225
OIL (INTERNATIONAL INTEGRATED)--1.0%
Chevron Corp............................ 59,000 4,845,375
Exxon Mobil Corp........................ 109,900 9,801,706
--------------
14,647,081
--------------
PAPER & FOREST PRODUCTS--0.3%
International Paper Co.................. 104,000 3,809,000
RETAIL (COMPUTERS & ELECTRONICS)--1.2%
Tech Data Corp.(b)...................... 419,700 17,470,013
RETAIL (FOOD CHAINS)--0.5%
Safeway, Inc.(b)........................ 131,700 7,202,344
RETAIL (GENERAL MERCHANDISE)--1.0%
Wal-Mart Stores, Inc.................... 314,100 14,252,288
SERVICES (COMMERCIAL & CONSUMER)--0.7%
Cendant Corp.(b)........................ 454,800 5,457,600
Viad Corp............................... 242,600 5,185,575
--------------
10,643,175
--------------
SERVICES (COMPUTER SYSTEMS)--1.2%
Computer Sciences Corp.(b).............. 118,800 7,484,400
Electronic Data Systems Corp............ 200,000 9,387,500
--------------
16,871,900
--------------
SERVICES (DATA PROCESSING)--1.3%
CheckFree Corp.(b)...................... 124,900 6,213,775
Fiserv, Inc.(b)......................... 232,800 12,207,450
--------------
18,421,225
--------------
<CAPTION>
SHARES VALUE
-------- --------------
<S> <C> <C> <C>
TELECOMMUNICATIONS (LONG DISTANCE)--0.4%
WorldCom, Inc.(b)....................... 253,900 $ 6,030,117
TELEPHONE--1.5%
SBC Communications, Inc................. 262,300 15,131,431
Verizon Communications.................. 121,000 6,995,313
--------------
22,126,744
--------------
--------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $584,525,241) 754,578,442
--------------------------------------------------------------------------------
FOREIGN COMMON STOCKS--4.4%
COMPUTERS (SOFTWARE & SERVICES)--0.6%
Check Point Software Technologies Ltd.
(Israel)(b)............................. 52,000 8,235,500
ELECTRICAL EQUIPMENT--0.4%
SONY Corp. ADR (Japan).................. 63,800 5,295,400
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.4%
Elan Corp. PLC Sponsored ADR
(Ireland)(b)............................ 121,800 6,325,987
MANUFACTURING (DIVERSIFIED)--2.7%
Tyco International Ltd. (Bermuda)....... 702,600 39,828,638
OIL & GAS (DRILLING & EQUIPMENT)--0.3%
Petroleum Geo-Services ASA ADR
(Norway)(b)............................. 279,100 3,820,181
--------------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $40,015,661) 63,505,706
--------------------------------------------------------------------------------
UNIT INVESTMENT TRUSTS--1.4%
S&P 500 Depository Receipts............. 143,500 20,529,469
--------------------------------------------------------------------------------
TOTAL UNIT INVESTMENT TRUSTS
(IDENTIFIED COST $18,854,987) 20,529,469
--------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--94.6%
(IDENTIFIED COST $1,194,590,970) 1,379,510,913
--------------------------------------------------------------------------------
</TABLE>
56 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Balanced Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- --------------
SHORT-TERM OBLIGATIONS--4.8%
<S> <C> <C> <C>
COMMERCIAL PAPER--4.6%
Household Finance Corp. 6.62%,
11/1/00................................. A-1+ $10,000 $ 10,000,000
Sara Lee Corp 6.49%, 11/2/00............ A-1+ 9,150 9,148,350
United Technologies Corp. 6.48%
11/2/00................................. A-1+ 3,000 2,999,460
Greenwich Funding Corp. 6.51%,
11/3/00................................. A-1+ 815 814,705
Pfizer, Inc. 6.49%, 11/3/00............. A-1+ 2,500 2,499,099
Wisconsin Electric Power 6.48%,
11/6/00................................. A-1+ 3,100 3,097,210
American Home Products Corp. 6.55%,
11/8/00................................. A-1 5,000 4,993,632
Private Export Funding Corp. 6.47%,
11/8/00................................. A-1+ 3,000 2,996,226
Greenwich Funding Corp. 6.55%,
11/9/00................................. A-1+ 5,360 5,352,198
Household Finance Corp. 6.49%,
11/9/00................................. A-1+ 5,000 4,992,789
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- --------------
<S> <C> <C> <C>
COMMERCIAL PAPER--CONTINUED
American Home Products Corp. 6.48%,
11/13/00................................ A-1 $ 5,283 $ 5,271,589
United Technologies Corp. 6.52%,
11/14/00................................ A-1 1,160 1,157,269
Preferred Receivables Funding Corp.
6.50%, 11/16/00......................... A-1 4,000 3,989,167
AT&T Corp. 6.56%, 11/20/00.............. A-1+ 4,310 4,295,078
Gannett Co., Inc. 6.50%, 11/21/00....... A-1 2,650 2,640,430
AT&T Corp. 6.53%, 12/11/00.............. A-1+ 3,420 3,395,186
--------------
67,642,388
--------------
MEDIUM-TERM NOTES--0.2%
Associates Corporation of North America
6.48%, 11/29/00......................... A+ 2,678 2,664,503
--------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $70,306,891) 70,306,891
--------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--99.4%
(IDENTIFIED COST $1,264,897,861) 1,449,817,804(a)
Cash and receivables, less liabilities--0.6% 8,536,650
--------------
NET ASSETS--100.0% $1,458,354,454
==============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $241,788,670 and gross
depreciation of $60,672,942 for federal income tax purposes. At October 31,
2000, the aggregate cost of securities for federal income tax purpose was
$1,268,702,076.
(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,
2000, these securities amounted to a value of $31,206,970 or 2.1% 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 57
<PAGE>
Phoenix-Oakhurst Balanced Fund
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $1,264,897,861) $1,449,817,804
Short-term investments held as collateral for loaned
securities 292,600
Cash 34,549
Receivables
Dividends and interest 7,199,693
Investment securities sold 3,958,623
Fund shares sold 256,151
Prepaid expenses 11,604
--------------
Total assets 1,461,571,024
--------------
LIABILITIES
Payables
Collateral on securities loaned 292,600
Fund shares repurchased 1,222,799
Investment advisory fee 654,671
Transfer agent fee 414,327
Distribution fee 328,397
Financial agent fee 40,113
Trustees' fee 10,208
Accrued expenses 253,455
--------------
Total liabilities 3,216,570
--------------
NET ASSETS $1,458,354,454
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $1,095,591,472
Undistributed net investment income 9,050,836
Accumulated net realized gain 168,792,203
Net unrealized appreciation 184,919,943
--------------
NET ASSETS $1,458,354,454
==============
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $1,423,112,906) 80,735,210
Net asset value per share $17.63
Offering price per share $17.63/(1-5.75%) $18.71
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $35,241,548) 2,011,081
Net asset value and offering price per share $17.52
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 46,748,984
Dividends 7,843,461
Security lending 171,593
Foreign taxes withheld (35,298)
--------------
Total investment income 54,728,740
--------------
EXPENSES
Investment advisory fee 8,204,629
Distribution fee, Class A 3,758,792
Distribution fee, Class B 374,093
Financial agent fee 490,930
Transfer agent 2,225,898
Printing 299,752
Custodian 174,855
Professional 43,041
Registration 29,481
Trustees 24,500
Miscellaneous 41,507
--------------
Total expenses 15,667,478
Custodian fees paid indirectly (12,007)
--------------
Net expenses 15,655,471
--------------
NET INVESTMENT INCOME 39,073,269
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 170,400,716
Net change in unrealized appreciation (depreciation) on
investments (101,690,412)
--------------
NET GAIN ON INVESTMENTS 68,710,304
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 107,783,573
==============
</TABLE>
58 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Balanced Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/00 10/31/99
-------------- --------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 39,073,269 $ 35,863,854
Net realized gain (loss) 170,400,716 96,133,633
Net change in unrealized appreciation
(depreciation) (101,690,412) 121,818,561
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 107,783,573 253,816,048
-------------- --------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (37,204,681) (35,733,708)
Net investment income, Class B (712,273) (587,211)
Net realized gains, Class A (92,529,024) (59,145,470)
Net realized gains, Class B (2,315,976) (1,279,772)
-------------- --------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (132,761,954) (96,746,161)
-------------- --------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(2,417,466 and 3,094,136 shares,
respectively) 42,484,505 53,824,896
Net asset value of shares issued from
reinvestment of distributions
(6,969,502 and 5,171,102 shares,
respectively) 121,515,449 87,493,618
Cost of shares repurchased (15,755,639
and 16,196,289 shares, respectively) (277,625,446) (282,470,843)
-------------- --------------
Total (113,625,492) (141,152,329)
-------------- --------------
CLASS B
Proceeds from sales of shares (207,429
and 404,309 shares, respectively) 3,630,967 7,032,370
Net asset value of shares issued from
reinvestment of distributions
(164,554 and 102,012 shares,
respectively) 2,857,773 1,720,281
Cost of shares repurchased (523,758
and 373,100 shares, respectively) (9,169,774) (6,493,887)
-------------- --------------
Total (2,681,034) 2,258,764
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (116,306,526) (138,893,565)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS (141,284,907) 18,176,322
NET ASSETS
Beginning of period 1,599,639,361 1,581,463,039
-------------- --------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$9,050,836 AND $7,143,938,
RESPECTIVELY] $1,458,354,454 $1,599,639,361
============== ==============
</TABLE>
See Notes to Financial Statements 59
<PAGE>
Phoenix-Oakhurst Balanced Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.92 $ 16.29 $ 18.07 $ 17.56 $ 17.04
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.47 0.40 0.42 0.48 0.48
Net realized and unrealized gain (loss) 0.77 2.25 0.90 2.38 1.46
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 1.24 2.65 1.32 2.86 1.94
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.44) (0.39) (0.40) (0.48) (0.49)
Dividends from net realized gains (1.09) (0.63) (2.70) (1.87) (0.93)
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (1.53) (1.02) (3.10) (2.35) (1.42)
--------- --------- --------- --------- ---------
Change in net asset value (0.29) 1.63 (1.78) 0.51 0.52
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 17.63 $ 17.92 $ 16.29 $ 18.07 $ 17.56
========= ========= ========= ========= =========
Total return(1) 7.13% 16.73% 8.68% 18.04% 12.03%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,423,113 $1,561,026 $1,548,475 $1,702,385 $1,897,306
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.00%(2) 0.97%(2) 0.97% 0.98% 1.01%
Net investment income 2.55% 2.19% 2.41% 2.65% 2.74%
Portfolio turnover rate 50% 57% 138% 206% 191%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.85 $ 16.25 $ 18.04 $ 17.54 $ 17.01
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.33 0.27 0.30 0.35 0.35
Net realized and unrealized gain (loss) 0.77 2.24 0.90 2.37 1.47
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 1.10 2.51 1.20 2.72 1.82
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.34) (0.28) (0.29) (0.35) (0.36)
Dividends from net realized gains (1.09) (0.63) (2.70) (1.87) (0.93)
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (1.43) (0.91) (2.99) (2.22) (1.29)
--------- --------- --------- --------- ---------
Change in net asset value (0.33) 1.60 (1.79) 0.50 0.53
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 17.52 $ 17.85 $ 16.25 $ 18.04 $ 17.54
========= ========= ========= ========= =========
Total return(1) 6.29% 15.84% 7.91% 17.13% 11.24%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $35,242 $38,613 $32,988 $30,216 $26,209
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.75%(2) 1.72%(2) 1.72% 1.73% 1.76%
Net investment income 1.80% 1.45% 1.66% 1.90% 1.96%
Portfolio turnover rate 50% 57% 138% 206% 191%
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) 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.
60 See Notes to Financial Statements
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000
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 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.
Effective April 3, 2000, Class A shares of Aggressive Growth, Capital Growth and
Balanced Fund are sold with a front-end sales charge of up to 5.75%. Prior to
that date, the maximum sales charge for those funds was 4.75%. Class A shares of
Core Bond and High Yield Fund 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 accounting principles
generally accepted in the United States 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.
Certain securities held by the Funds were valued on the basis of a price
provided by a principal market maker. The prices provided by the principal
market makers may differ from the value that would be realized if the securities
were sold. At October 31, 2000, the total value of these securities represented
approximately 8% and 6% of net assets of Core Bond Fund and High Yield Fund,
respectively.
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 accrete discounts using the effective interest method. Realized gains
and losses are determined on the identified cost basis.
C. INCOME TAXES:
Each of the Funds is treated as a separate taxable entity. It is the policy of
each Fund in the Trust to comply with the requirements of the Internal Revenue
Code (the Code), applicable to regulated investment companies, and to distribute
all of its taxable income to its shareholders. In addition, each Fund intends to
distribute an amount sufficient to avoid imposition of any excise tax under
Section 4982 of the Code. Therefore, no provision for federal income taxes or
excise taxes has been made.
D. DISTRIBUTIONS TO SHAREHOLDERS:
Distributions are recorded by each Fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences include the treatment of non-taxable dividends, expiring
capital loss carryforwards, foreign currency gain/loss, partnerships, and losses
deferred due to wash sales and excise tax regulations. Permanent book and tax
basis differences relating to shareholder distributions will result in
reclassifications to paid in capital.
61
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 (CONTINUED)
E. FOREIGN CURRENCY TRANSLATION:
Foreign securities, other assets and liabilities are valued using the foreign
currency exchange rate effective at the end of the reporting period. Cost of
investments is translated at the currency exchange rate effective at the trade
date. The gain or loss resulting from a change in currency exchange rates
between the trade and settlement dates of a portfolio transaction is treated as
a gain or loss on foreign currency. Likewise, the gain or loss resulting from a
change in currency exchange rates, between the date income is accrued and paid,
is treated as a gain or loss on foreign currency. The Trust does not separate
that portion of the results of operations arising from changes in exchange rates
and that portion arising from changes in the market prices of securities.
F. FORWARD CURRENCY CONTRACTS:
Each of the 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, 2000, the Trust had the following amounts of securities on loan and
related collateral:
<TABLE>
<CAPTION>
Value of
Value of Securities
Collateral on Loan
----------- -----------
<S> <C> <C>
Core Bond Fund.......................... $ 551,050 $ --
Aggressive Growth Fund.................. 29,049,710 27,889,200
Capital Growth Fund..................... 2,680,000 2,625,000
Balanced Fund........................... 292,600 68,438
</TABLE>
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.
62
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 (CONTINUED)
K. FORWARD CONTRACT LOAN TRANSACTIONS:
The Fund may use forward contract loan transactions to gain exposure to the
syndicated loan market. As a result, the fund may be subject to the credit risk
of both the borrower and the lender that is selling the underlying loans.
L. 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.
At October 31, 2000, the High Yield Fund had the following swap agreements
outstanding:
<TABLE>
<CAPTION>
Unrealized
Appreciation
Notional Amount (Depreciation)
--------------- --------------
<C> <S> <C>
$4,200,000... Agreement with Morgan Stanley Capital $1,133,333
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
$6,105,000... Agreement with Morgan Stanley Capital 1,306,500
Services Inc. terminating on December
15, 2004 to receive interest at 9.64% in
exchange for payment of 7.625%
on EUR 6,000,000
$5,261,160... Agreement with Chase Manhattan Bank 1,263,197
terminating on December 15, 2004 to
receive interest at 12.09% in exchange
for payment of 10.00% on EUR 5,100,000
$9,267,000... Agreement with Morgan Stanley Capital 2,276,250
Services Inc. terminating on November
15, 2006 to receive interest at 11.07%
in exchange for payment of 9.25%
on EUR 9,000,000
$4,890,000... Agreement with Morgan Stanley Capital 1,047,273
Services Inc. terminating on March 15,
2008 to receive interest at 12.82% in
exchange for payment of 10.75% on EUR
5,000,000
----------
$7,026,553
==========
</TABLE>
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
63
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 (CONTINUED)
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:
<TABLE>
<CAPTION>
1st $1 $1-2 $2+
Series Billion Billion Billion
------ ------- ------- -------
<S> <C> <C> <C>
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%
</TABLE>
DPIM serves as investment adviser for the Core Bond Fund and PIC serves as
investment advisor for the remaining funds within the Trust.
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.
Roger Engemann & Associates, Inc. ("REA") is the subadvisor to the Aggressive
Growth Fund and Capital Growth Fund. 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 $414,834
for Class A shares, deferred sales charges of $863,884 for Class B shares and
$5,550 for Class C shares, for the year ended October 31, 2000. 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, 2000, $3,804,642 was
earned by the Distributor, $11,759,604 was earned by unaffiliated participants,
and $1,521,625 was paid to W.S. Griffith, an indirect subsidiary of PHL.
For the year ended October 31, 2000, the Trust paid PXP Securities Corp., a
wholly owned subsidiary of Phoenix Investment Partners Ltd., brokerage
commissions of $626,037 in connection with portfolio transactions effected by
it.
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. For the year ended October 31, 2000, financial agent fees were
$2,225,727, of which PEPCO received $233,160. 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 ("State Street") as sub-transfer agent. For the year ended October 31,
2000, transfer agent fees were $8,180,175 of which PEPCO retained $3,229,687
which is net of fees paid to State Street.
At October 31, 2000, PHL and affiliates held Trust shares which aggregated the
following:
<TABLE>
<CAPTION>
Aggregate
Net Asset
Shares Value
----------- -----------
<S> <C> <C>
Core Bond Fund, Class A................. 356 $ 3,154
Core Bond, Class C...................... 11,705 103,472
Aggressive Growth Fund, Class B......... 15,904 479,188
High Yield Fund, Class A................ 516 3,400
Money Market Fund, Class A.............. 15,219,047 15,219,047
Money Market Fund, Class C.............. 103,431 103,431
</TABLE>
In October, 1999, 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, 2000
(excluding U.S. Government and agency securities and short-term securities)
aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
-------------- --------------
<S> <C> <C>
Core Bond Fund.......................... $ 51,338,397 $ 48,915,485
Agressive Growth Fund................... 997,110,984 924,853,265
Capital Growth Fund..................... 2,259,710,959 2,800,290,877
High Yield Fund......................... 323,054,142 356,550,115
Balanced Fund........................... 674,174,715 911,943,536
</TABLE>
64
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 (CONTINUED)
Purchases and sales of U.S. Government and agency securities during the year
ended October 31, 2000, aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
Core Bond Fund.......................... $148,911,638 $175,617,964
Balanced Fund........................... 72,440,319 98,298,113
</TABLE>
4. FORWARD CURRENCY CONTRACTS
As of October 31, 2000 the High Yield Fund had entered into the following
forward currency contract which contractually obligates the Fund to receive
currency at the specified date:
<TABLE>
<CAPTION>
Net
Unrealized
Settlement Appreciation
Contract to receive In Exchange for Date Value (Depreciation)
------------------- --------------- ---------- ----------- --------------
<S> <C> <C> <C> <C>
Euros 36,012,000.. US$ 34,805,598 6/7/01 $30,791,591 $(4,014,007)
</TABLE>
5. 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.
High yield-high risk securities typically entail greater price volatility and
principal and interest rate risk. There is a greater chance that an issuer will
not be able to make principal and interest payments on time. Analysis of the
creditworthiness of issuers of high yield securities may be complex, and as a
result, it may be more difficult for the subadviser to accurately predict risk.
6. CAPITAL LOSS CARRYOVERS
The following Funds have capital loss carryforwards which may be used to
offset future capital gains.
<TABLE>
<CAPTION>
Core Bond High Yield
Expiration Date Fund Fund
--------------- ----------- ------------
<S> <C> <C>
2002.................................... $ 5,893,108 $ 14,103,053
2003.................................... -- 46,929,335
2004.................................... 2,433,827 --
2006.................................... -- 1,533,950
2007.................................... 6,429,814 38,223,988
2008.................................... 8,192,130 27,836,216
----------- ------------
Total................................... $22,948,879 $128,626,542
=========== ============
</TABLE>
7. 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, 2000, the Funds recorded
the following reclassifications to increase (decrease) the accounts listed
below:
<TABLE>
<CAPTION>
Capital paid
Undistributed Accumulated in on shares
net investment net realized of benefical
income (loss) gain (loss) interest
-------------- ------------ ------------
<S> <C> <C> <C>
Core Bond Fund.......................... $ 856,808 $(705,033) $ (151,775)
Aggressive Growth Fund.................. 3,240,741 -- (3,240,741)
Capital Growth Fund..................... 13,367,404 (812,115) (12,555,289)
High Yield Fund......................... 579,229 (325,196) (254,033)
Balanced Fund........................... 750,583 (151,383) (599,200)
</TABLE>
TAX INFORMATION NOTICE (UNAUDITED)
For the fiscal year ended October 31, 2000, the following Funds distributed
long-term capital gain dividends as follows:
<TABLE>
<S> <C>
Aggressive Growth Fund.................. $ 25,389,252
Capital Growth Fund..................... 357,926,703
Balanced Fund........................... 86,921,154
</TABLE>
For federal income tax purposes, 11.25% 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.
65
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[LOGO]
To the Board of Trustees and Shareholders of
Phoenix Series Fund
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, 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 (constituting Phoenix Series Fund, hereinafter
referred to as the "Fund") at October 31, 2000, and the results of each of their
operations, the changes in each of their net assets and the financial highlights
for the periods indicated, in conformity with accounting principles generally
accepted in the United States of America. 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 auditing standards
generally accepted in the United States of America, 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, 2000 by correspondence with the custodian and brokers, provide a
reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 15, 2000
66
<PAGE>
RESULTS OF SHAREHOLDER MEETING (UNAUDITED)
A special meeting of Shareholders of Phoenix Series Fund was held on May 16,
2000 to approve the following matters:
1. Approve a new Rule 12b-1 Distribution Plan for Class B Shares.
2. Approve a new Rule 12b-1 Distribution Plan for Class C Shares.
On the record date for this meeting, the shares outstanding and percentage of
the shares outstanding and entitled to vote that were present by proxy were as
follows:
<TABLE>
<CAPTION>
SHARES PERCENTAGE PRESENT
CLASS OF SHARES OUTSTANDING BY PROXY
--------------- ----------- ------------------
<S> <C> <C>
Phoenix-Duff & Phelps Core Bond Fund
Class B 972,322 50.71%
Phoenix-Duff & Phelps Core Bond Fund
Class C 20,698 55.29%
Phoenix-Engemann Aggressive Growth Fund
Class B 1,696,992 50.39%
Phoenix-Engemann Capital Growth Fund
Class B 3,715,987 50.19%
Phoenix-Goodwin High Yield Fund Class B 7,286,138 59.27%
Phoenix-Goodwin High Yield Fund Class C 392,643 58.60%
Phoenix-Goodwin Money Market Fund
Class B 21,057,400 51.14%
Phoenix-Goodwin Money Market Fund
Class C 924,125 77.94%
Phoenix-Oakhurst Balanced Fund Class B 2,147,853 51.97%
</TABLE>
NUMBER OF VOTES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--------- --------- ---------
<S> <C> <C> <C> <C>
1. Approve a new Rule 12b-1 Distribution
Plan for Class B Shares
Phoenix-Duff & Phelps Core Bond 459,906 13,085 20,119
Fund Class B
Phoenix-Engemann Aggressive Growth 761,870 26,945 66,274
Fund Class B
Phoenix-Engemann Capital Growth 1,608,156 78,582 178,233
Fund Class B
Phoenix-Goodwin High Yield Fund 3,871,429 142,987 304,089
Class B
Phoenix-Goodwin Money Market Fund 9,310,426 276,720 1,180,903
Class B
Phoenix-Oakhurst Balanced Fund 920,602 74,583 121,005
Class B
2. Approve a new Rule 12b-1 Distribution
Plan for Class C Shares
Phoenix-Duff & Phelps Core Bond 11,443 0 0
Fund Class C
Phoenix-Goodwin High-Yield Fund 215,990 5,153 8,938
Class C
Phoenix-Goodwin Money Market Fund 720,235 0 0
Class C
</TABLE>
67
<PAGE>
RESULTS OF SHAREHOLDER MEETINGS (UNAUDITED)
Special meetings of Shareholders of Phoenix-Oakhurst Income & Growth Fund were
held on May 16, 2000 and August 17, 2000, respectively, to approve the following
matters:
1. Approve a new Rule 12b-1 Distribution Plan for Class B Shares.
2. Approve an Agreement and Plan of Reorganization which provides for the
reorganization of the Fund into a Delaware business trust.
On the record date of May 16, 2000, there were 142,382 Class B shares
outstanding and 55.33% of the shares outstanding and entitled to vote were
present by proxy.
On the record date of August 17, 2000, there were 6,364,204 shares outstanding
and 57.81% of the shares outstanding and entitled to vote were present by proxy.
NUMBER OF VOTES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--------- --------- ---------
<S> <C> <C> <C> <C>
1. Approve a new Rule 12b-1 Distribution 77,743 1,037 0
Plan for Class B Shares
2. Approve Amendment and Plan of 3,233,624 127,231 0
Reorganization
</TABLE>
68
<PAGE>
PHOENIX FUND
101 Munson Street
Greenfield, Massachusetts 01301
TRUSTEES
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Francis E. Jeffries
Leroy Keith, Jr.
Philip R. McLoughlin
Everett L. Morris
James M. Oates
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
OFFICERS
Philip R. McLoughlin, President
Michael E. Haylon, Executive Vice President
John F. Sharry, Executive Vice President
J. Roger Engemann, Senior Vice President
James D. Wehr, Senior Vice President
David L. Albrycht, Vice President
Malcolm Axon, Vice President
Steven L. Colton, Vice President
Robert S. Driessen, Vice President
Christopher J. Kelleher, Vice President
James E. Mair, Vice President
William R. Moyer, Executive Vice President
Timothy P. Norman, Vice President
Christopher J. Saner, Vice President
Julie L. Sapia, Vice President
Andrew Szabo, Vice President
John S. Tilson, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
INVESTMENT ADVISER
Phoenix Investment Counsel, Inc.
56 Prospect Street
Hartford, Connecticut 06115-0480
Duff & Phelps Investment Management
(Phoenix-Duff & Phelps Core Bond Fund)
55 East Monroe Street
Chicago, IL 60603
PRINCIPAL UNDERWRITER
Phoenix Equity Planning Corporation
56 Prospect Street
Hartford, Connecticut 06115-0480
TRANSFER AGENT
Phoenix Equity Planning Corporation
56 Prospect Street
Hartford, Connecticut 06115-0480
CUSTODIAN
State Street Bank and Trust Company
P.O. Box 351
Boston, Massachusetts 02101
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
160 Federal Street
Boston, Massachusetts 02110
HOW TO CONTACT US
The Fund Connection 1-800-243-1574
Customer Service 1-800-243-1574
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
World Wide Web address:
www.phoenixinvestments.com
<PAGE>
PHOENIX EQUITY PLANNING CORPORATION PRSRT STD
PO Box 150480 U.S. Postage
Hartford CT 06115-0480 PAID
Andrew
[LOGO] PHOENIX Associates
INVESTMENT PARTNERS
For more information about
Phoenix mututal funds, please call
your financial representative or
contact us at 1-800-243-4361 or
www.phoenixinvestments.com.
PXP 394 (12/00)
