PHOENIX WORLDWIDE OPPORTUNITIES FUND
MARKET AND PORTFOLIO REVIEW
Fund Description
Phoenix Worldwide Opportunities Fund invests in a diversified portfolio of
securities of companies and governments located throughout the world. The
Fund does not limit its investments to any particular regions of the world or
to issuers of any particular size. The manager will seek to identify
opportunities for capital appreciation in developed countries as well as in
countries whose economies are still emerging and developing.
World Markets
Over the past year, we have seen widely divergent performance from world
equity markets and currencies. The Mexican peso crisis in December, high
interest rates in non-core European markets and the sharp decline of the U.S.
dollar in the first calendar quarter put tremendous pressure on equities.
More recently, markets have rallied strongly on the back of the booming U.S.
stock and bond markets. Interest rates on long bonds have fallen 80 to 100
basis points throughout most of Europe, helping to boost stocks. Asia and
Latin America also rallied when fears of rising U.S. interest rates faded.
While 1994 earnings growth in Europe was above expectations,
economically-sensitive sectors are already anticipating slower economic
growth ahead. Most of Asia had earnings consistent with expectations, except
for Hong Kong, where weak real estate activity and retail demand have pulled
the market down. Japan has been one of the biggest disappointments, with the
sharp appreciation of the yen worrying both corporations and consumers alike.
Companies that have moved production offshore or been exposed to strong U.S.
and Asian demand reported better-than-expected profits. However, those
companies with significant exposure to the domestic economy are still
suffering.
Boosted by strong corporate profits and an unexpectedly rapid drop in
interest rates, the U.S. market was the standout performer for the first half
of 1995. In addition to the U.S., Switzerland, the Netherlands, Belgium,
Finland and Denmark were among the best performers. Over this reporting
period, Japan and Latin America were among the worst performing markets.
Portfolio Review
For the 12 months ended June 30, 1995, Class A shares produced a total return
of 6.53% and Class B shares produced a total return of 3.54% (since
inception). As measured by the Morgan Stanley Capital International World
Index, the market gained 10.67% in the same period. All of these figures
assume reinvestment of any distributions, but exclude the effect of sales
charges.
The portfolio's underperformance was due in part to underweighting in the
strong U.S. market, with holdings that lagged the market for the first five
months of 1995. The Fund was also hurt from exposure to weaker
mid-capitalized European stocks and underweighting in Japan when the yen
strengthened early in the year. The Fund's holdings in Scandinavia,
Switzerland, and Southeast Asia helped to offset these negative factors,
particularly in the second half of this period. The portfolio has recently
benefited from the stronger performance of both our U.S. and European
holdings.
Outlook
The outlook for European economies is positive, with growth anticipated
between 2.5% and 3% this year. There are few signs of inflationary pressures
in Europe, and bond yields have fallen over the last few months. The main
driver of economic growth has come from industrial companies where
restructuring, strong exports and the start of recovery in Europe has led to
a sharp pick up in activity and a rebound in corporate profits. While the
consumer climate remains quite weak, we expect improvement later in 1995 and
have added to our positions in consumer and domestic demand stocks. We
continue to hold our positions in companies that should benefit from
outsourcing, productivity enhancement and capital investments as Europe works
to improve its global competitiveness.
Strong growth in Asia continues, with the region expected to grow at a
pace of 5% to 8% in 1995. Despite fears of a currency collapse similar to
Mexico's, Asian governments responded quickly, raising interest rates to
protect their currencies and slow overheating economies. We expect to further
increase our overweight position in the region on any market weakness and
look forward to renewed growth in 1996.
Latin America remains difficult. If Mexico stabilizes and does not cause
similar problems for the governments of Brazil and Argentina, there is every
reason to remain sanguine about the long-term outlook. However, we expect
slow economic growth and poor corporate profits in 1995 and will wait to add
to positions until the situation improves.
The Fund has increased holdings in Europe and the Pacific Basin,
particularly in financial stocks that are expected to benefit from lower
interest rates. We plan to increase exposure to the United Kingdom in hope
that the upcoming election spurs the government to create a "feel good"
environment for consumers. We also expect to maintain an underweighting in
Japan until it becomes evident that a serious effort is being made to resolve
fundamental problems in the financial system.
The Fund has also increased its exposure to the U.S. market, although it
still remains underweight versus the MSCI World Index. Offsetting this lower
weighting, however, is a continued emphasis on high growth, smaller
capitalization names. In our view, such holdings provide greater potential
for above-market returns in the months ahead. We also anticipate that either
a backup in interest rates or earnings disappointments may cause weakness in
the market over the balance of 1995.
1
<PAGE>
Phoenix Worldwide Opportunities Fund
Standard
& Poor's Phoenix
500 Stock MSCI World Worldwide
Index* (net) Index** Opportunities Fund--Class A
6/30/85 10,000.00 10,000 9,522.84
6/30/86 13,567.32 15,581 12,708.23
6/30/87 16,978.64 22,189 13,795.49
6/30/88 15,798.86 21,956 12,900.12
6/30/89 19,028.11 24,696 12,304.70
6/30/90 22,146.78 26,448 12,573.64
6/30/91 23,783.57 25,153 11,910.85
6/30/92 26,960.19 26,216 12,557.59
6/30/93 30,619.34 30,607 13,991.74
6/30/94 31,058.00 33,742 17,833.68
6/30/95 39,131.23 37,341 18,998.52
Average Annual Total Return:
1 year ending 6/30/95 1.44%
5 years ending 6/30/95 7.55%
10 years ending 6/30/95 6.63%
This chart assumes an initial gross investment of $10,000 made on 6/30/85 for
Class A shares. Total returns for Class A shares reflect the maximum sales
charge of 4.75% on the initial investment and assume reinvestment of
dividends and capital gains. The total return of -0.77% (since inception
7/15/94) for Class B shares reflects the 5% contingent deferred sales charge
(CDSC), which is applicable on all shares redeemed during the 1st year after
purchase and 4% for all shares redeemed during the 2nd year after purchase
(scaled down to 3%--3rd year; 2%--4th and 5th year and 0% thereafter.)
Performance of Class A and B shares is net of 0.25% and 1.0% distribution
fee, respectively. Returns indicate past performance, which is not predictive
of future performance. Investment return and principal value will fluctuate
so that your shares, when redeemed, may be worth more or less than the
original cost.
*The S&P 500 Stock Index is an unmanaged but commonly used measure of stock
total return performance. The S&P performance does not reflect sales charges.
**The Morgan Stanley Capital International World (net) index is an unmanaged,
arithmetical average weighted by the market value of companies listed on
stock exchanges which includes approximately 1600 companies listed on the
stock exchanges of the USA, Europe, Canada, Australia, New Zealand and the
Far East. The Morgan Stanley Capital performance does not reflect sales
charges.
2
<PAGE>
Phoenix Worldwide Opportunities Fund
SCHEDULE OF INVESTMENTS
June 30, 1995
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C>
COMMON STOCKS--94.3%
Argentina--0.9%
Quilmes (Beverages) 62,000 $ 1,209,000
------------
Australia--2.1%
Australia & New Zealand Banking Group
(Banks) 350,000 1,240,519
News Corp. (Publishing, Broadcasting
& Printing) 262,000 1,459,786
------------
2,700,305
------------
Austria--1.8%
Austria Mikro Systeme International
AG (Electronics) 12,000 1,578,023
Flughafen Wien (Business & Public
Services) 14,000 745,040
------------
2,323,063
------------
Belgium--1.0%
Kredietbank NV (Banks) 5,300 1,259,005
------------
Canada--0.9%
Gandalf Technologies, Inc. (Computer
Software & Services) 125,000 1,132,812
------------
Chile--1.3%
Compania de Telefonos de Chile ADR
(Utility--Telephone) 20,000 1,627,500
------------
Denmark--0.5%
Unidanmark (Banks) 14,100 691,816
------------
Finland--2.5%
Benefon OY (Electronics) 54,800 2,075,418
Nokia AB (Telecommunications
Equipment) 20,000 1,168,907
------------
3,244,325
------------
France--4.7%
Castorama Dubois (Retail) 3,700 613,677
Christian Dior SA (Retail) 6,500 572,831
Legrand (Electrical Equipment) 4,700 746,570
LVMH (Beverages) 8,000 1,440,743
Total Compagnie Francaise des
Petroles (Oil) 25,000 1,505,931
Valeo (Auto & Truck Parts) 25,000 1,216,607
------------
6,096,359
------------
Germany--6.9%
Buderus AG (Building & Materials) 700 336,320
Commerzbank AG (Banks) 5,400 1,290,600
Fresenius AG (Medical Technology) 2,200 1,482,986
Gehe AG (Health Care--Drugs) 2,900 1,330,467
Moebel Walther AG (Household
Furnishings & Appliances) 2,750 1,390,795
Standard Application Software
AG--Vorzug (Computer Software
& Services) 2,510 3,159,942
------------
8,991,110
------------
Hong Kong--6.4%
CDL Hotels International
(Lodging & Restaurants) 2,500,000 $1,219,709
Consolidated Electric Power Asia
(Utility--Electric) 770,000 1,786,300
Dao Heng Bank Group, Ltd. (Banks) 200,000 610,016
First Pacific Company Ltd.
(Conglomerates) 1,720,000 1,522,714
HSBC Holdings plc (Banks) 122,000 1,564,911
Hutchison Whampoa (Conglomerates) 138,000 667,037
Sun Hung Kai Properties (Property
Development) 125,000 924,879
------------
8,295,566
------------
Indonesia--2.1%
Astra International (Auto & Truck
Parts) 369,000 654,490
Indonesia Satellite (Indosat)
(Utility--Telephone) 39,400 1,507,050
Wicaksana Overseas (International
Trade ) 220,000 617,423
------------
2,778,963
------------
Italy--0.5%
Telecom Italia (Utility--Telephone) 232,000 628,540
------------
Japan--4.8%
Mitsui Marine & Fire Insurance
(Insurance ) 82,000 537,009
Murata Manufacturing (Electronics) 17,000 642,757
Nippon Steel (Metals & Mining) 72,000 234,064
Nippon Telegraph & Telephone
(Utility--Telephone) 75 627,209
Omron Corp. (Electronics) 45,000 858,658
Oriental Construction Co.
(Construction) 30,000 628,976
Rohm Co. (Electronics) 15,000 773,853
Sankyo Co. (Health Care--Diversified) 23,300 540,648
Shohkoh Fund & Co. (Financial
Services) 7,400 1,324,854
------------
6,168,028
------------
Korea--1.1%
Samsung Electronics (Electronics) 27,200 1,414,400
------------
Malaysia--0.4%
Magnum Corporation (Entertainment,
Leisure & Gaming) 140,000 327,331
Technology Resources Industries
(Utility--Telephone) 61,000 175,151
------------
502,482
------------
See Notes to Financial Statements
3
<PAGE>
Phoenix Worldwide Opportunities Fund
Netherlands--6.1%
Ahrend Group NV (Office & Business
Equipment) 9,500 $ 1,252,983
Cap Volmac Software NV (Computer
Software & Services) 100,000 1,522,090
Getronics NV (Computer Software &
Services) 15,000 734,279
IHC Caland NV (Oil Service &
Equipment) 50,000 1,418,897
Polygram NV (Entertainment, Leisure &
Gaming) 2,300 135,730
Sphinx Kon CVA (Building & Materials) 41,683 1,489,351
VNU (Publishing, Broadcasting &
Printing) 11,000 1,316,027
------------
7,869,357
------------
Norway--3.0%
Nera AS (Telecommunications
Equipment) 25,000 709,651
Petroleum Geo-Services (Oil Service &
Equipment) (b) 60,000 1,725,000
Uni Storebrand (Insurance) 318,000 1,428,808
------------
3,863,459
------------
Peru--1.0%
CPT (Utility--Telephone) 775,013 1,322,429
------------
Philippines--1.0%
Metropolitan Bank & Trust Co. (Banks) 60,000 1,303,837
------------
Singapore--1.7%
City Development Ltd. (Property
Development) 86,000 526,154
Development Banks of Singapore
(Banks) 131,000 1,490,447
United Overseas Bank Ltd. (Banks) 25,200 238,025
------------
2,254,626
------------
South Africa--1.4%
De Beers Consolidated Mines, Ltd.
(Metals & Mining) 70,000 1,811,250
------------
Spain--2.2%
Centros Comerciales Continente SA
(Retail) 63,500 1,526,014
Repsol SA (Oil) 40,000 1,258,568
------------
2,784,582
------------
Sweden--4.0%
Allgon AB (Telecommunications
Equipment) 55,000 1,306,718
Astra AB (Health Care--Drugs) 44,000 1,356,570
Autoliv AB (Auto & Truck Parts) 32,000 1,709,514
SKF AB (Miscellaneous) 42,200 851,928
------------
5,224,730
------------
Switzerland--4.6%
Brown Boveri & Cie (Electrical
Equipment) 1,500 1,551,949
Roche Holdings (Health Care--
Diversified) 220 1,416,891
Sandoz AG (Health Care--Diversifed) 1,900 1,309,435
Winterthur Insurance Co. (Insurance) 2,700 1,621,734
------------
5,900,009
------------
Thailand--2.5%
Alphatec Electronics Co. (Electrical
Equipment) 105,000 1,914,118
Bangkok Bank Company Ltd. (Banks) 53,800 592,813
PTT Exploration & Production (Oil) 72,500 781,244
------------
3,288,175
------------
United Kingdom--8.5%
Allied Irish Banks plc (Banks) 246,000 1,166,396
British Sky Broadcasting Group plc
(Publishing, Broadcasting, Printing &
Cable) 110,000 480,429
Carlton Communications (Publishing &
Broadcasting) 102,000 1,546,635
Glaxo Welcome plc (Health
Care--Drugs) 104,000 1,276,630
Granada Group (Entertainment, Leisure
& Gaming) 116,000 1,122,164
Lonrho plc (Conglomerates) 455,000 1,071,440
Next plc (Retail) 220,000 1,195,386
Smithkline Beecham plc (Health
Care--Diversified) 38,000 1,719,500
Takare (Hospital Management &
Services) 444,000 1,356,372
------------
10,934,952
------------
United States--20.4%
Adtran, Inc. (Telecommunications
Equipment) (b) 61,000 2,043,500
AMR Corp. (Airlines) (b) 25,000 1,865,625
Ascend Communications, Inc.
(Telecommunications Equipment) (b) 40,000 2,020,000
Biogen, Inc. (Health Care--Drugs) (b) 40,000 1,780,000
Boston Chicken (Lodging &
Restaurants) (b) 100,000 2,418,750
Centex Corp. (Building & Materials) 65,000 1,836,250
Dean Witter Discover & Co. (Financial
Services) 48,000 2,256,000
Engelhard Corp. (Chemical--Specialty) 35,000 1,500,625
Evergreen Media Corp. (Publishing,
Broadcasting, Printing & Cable) (b) 100,000 2,600,000
Komag, Inc. (Office & Business
Equipment) (b) 40,000 2,080,000
Oak Technology, Inc. (Computer
Software & Services) (b) 80,000 2,940,000
Qualcomm, Inc. (Telecommunications
Equipment) (b) 50,000 1,728,125
VLSI Technology, Inc. (Electronics) (b) 45,000 1,355,625
------------
26,424,500
------------
TOTAL COMMON STOCKS
(Identified cost $109,247,593) 122,045,180
------------
</TABLE>
See Notes to Financial Statements
4
<PAGE>
Phoenix Worldwide Opportunities Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(UNAUDITED) (000) VALUE
--------- ------- -------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--5.1%
Commercial Paper
U.S.--2.2%
TDK USA 5.97%, 7-20-95 A-1+ $2,830 $ 2,821,083
------------
Federal Agency Securities--2.9%
Federal Home Loan Banks 6.05%,
7-3-95 3,715 3,713,751
------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $6,534,834) 6,534,834
------------
TOTAL INVESTMENTS--99.4%
(Identified cost $115,782,427) 128,580,014(a)
Cash and receivables, less liabilities--0.6% 750,297
------------
NET ASSETS--100.0% $129,330,311
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $13,991,791 and gross
depreciation of $1,273,861 for federal income tax purposes. At June 30, 1995,
the aggregate cost of securities for federal income tax purposes was
$115,862,084.
(b) Non-income producing.
ADR--American Depository Receipt
See Notes to Financial Statements
5
<PAGE>
Phoenix Worldwide Opportunities Fund
INDUSTRY DIVERSIFICATION
As a percentage of Total Value of Common Stock
<TABLE>
<CAPTION>
<S> <C>
Airlines 1.5%
Auto & Truck Parts 2.9
Banks 9.4
Beverages 2.2
Building & Materials 3.0
Business & Public Services 0.6
Chemical Specialty 1.2
Computer Software & Services 7.8
Conglomerates 2.7
Construction 0.5
Electrical Equipment 3.5
Electronics 7.1
Entertainment, Leisure & Gaming 1.3
Financial Services 2.9
Health Care--Diversified 4.1
Health Care--Drugs 4.7
Hospital Management & Services 1.1
Household Furnishings & Appliances 1.1
Insurance 2.9
International Trade 0.5
Lodging & Restaurants 3.0
Medical Technology 1.2
Metals & Mining 1.7
Miscellaneous 0.7
Office & Business Equipment 2.7
Oil and Oil Services & Equipment 5.5
Property Development 1.2
Publishing, Broadcasting, Printing & Cable 6.1
Retail 3.2
Telecommunications Equipment 7.4
Utility--Electricity 1.5
Utility--Telephone 4.8
-----
100.0%
=====
</TABLE>
See Notes to Financial Statements
6
<PAGE>
Phoenix Worldwide Opportunities Fund
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Assets
Investment securities at value
(Identified cost $115,782,427) $128,580,014
Foreign currency at value
(Identified cost $1,283,302) 1,289,412
Cash 2,962
Receivables
Investment securities sold 4,739,017
Fund shares sold 98,621
Dividends and interest 355,632
Tax reclaim 27,022
------------
Total assets 135,092,680
------------
Liabilities
Payables
Investment securities purchased 4,761,210
Fund shares repurchased 189,978
Investment advisory fee 79,951
Distribution fee 28,379
Financial agent fee 3,198
Transfer agent fee 32,582
Trustees' fee 2,458
Accrued expenses 179,190
Net unrealized depreciation on forward currency
contracts 485,423
------------
Total liabilities 5,762,369
------------
Net Assets $129,330,311
============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $121,463,951
Distributions in excess of net investment income (870,783)
Accumulated net realized losses (3,593,517)
Net unrealized appreciation 12,330,660
------------
Net Assets $129,330,311
============
Class A
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$126,480,836) 13,985,314
Net asset value per share $9.04
Offering price per share
$9.04/(1-4.75%) $9.49
Class B
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$2,849,475) 317,303
Net asset value and offering price per share $8.98
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Investment income
Dividends (net of $148,997 foreign withholding
tax) $1,521,243
Interest 1,021,384
----------
Total investment income 2,542,627
----------
Expenses
Investment advisory fee 972,771
Distribution fee--Class A 320,285
Distribution fee--Class B 15,890
Financial agent fee 38,911
Transfer agent 418,739
Custodian 229,347
Printing 107,886
Registration 73,544
Professional 74,506
Trustees 23,715
Miscellaneous 73,305
----------
Total expenses 2,348,899
----------
Net investment income 193,728
----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 398,910
Net realized loss on foreign currency transactions (935,057)
Net unrealized appreciation on investments 7,782,551
Net unrealized depreciation on foreign currency
transactions (340,883)
----------
Net gain on investments 6,905,521
----------
Net increase in net assets resulting from
operations $7,099,249
==========
</TABLE>
See Notes to Financial Statements
7
<PAGE>
Phoenix Worldwide Opportunities Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Year
Ended Ended
June 30, 1995 June 30, 1994
------------ -------------
<S> <C> <C>
From Operations
Net investment income $ 193,728 $ 102,592
Net realized (loss) gain (536,147) 25,458,203
Net unrealized appreciation (depreciation) 7,441,668 (2,334,064)
----------- ------------
Increase in net assets resulting from operations 7,099,249 23,226,731
----------- ------------
From Distributions to Shareholders
Net investment income--Class A -- (318,807)
Net realized gains--Class A (18,002,670) --
Net realized gains--Class B (246,667) --
Distributions in excess of net realized gains--Class A (4,263,176) --
Distributions in excess of net realized gains--Class B (58,340) --
----------- ------------
Decrease in net assets from distributions to shareholders (22,570,853) (318,807)
----------- ------------
From Share Transactions
Class A
Proceeds from sales of shares (5,285,785 and 2,206,814 shares, respectively) 52,416,520 22,968,436
Net asset value of shares issued from reinvestment of distributions
(2,202,325 and 23,434 shares, respectively) 18,851,905 250,044
Cost of shares repurchased (5,169,653 and 1,672,871 shares, respectively) (48,268,641) (16,289,821)
----------- ------------
Total 22,999,784 6,928,659
----------- ------------
Class B
Proceeds from sales of shares (348,307 and 0 shares, respectively) 3,376,929 --
Net asset value of shares issued from reinvestment of distributions (25,057
and 0 shares, respectively) 213,734 --
Cost of shares repurchased (56,061 and 0 shares, respectively) (495,588) --
----------- ------------
Total 3,095,075 --
----------- ------------
Increase in net assets from share transactions 26,094,859 6,928,659
----------- ------------
Net increase in net assets 10,623,255 29,836,583
Net Assets
Beginning of period 118,707,056 88,870,473
----------- ------------
End of period (including distributions in excess of net investment income of
($870,783) and ($374,475), respectively) $129,330,311 $118,707,056
=========== ============
</TABLE>
See Notes to Financial Statements
8
<PAGE>
Phoenix Worldwide Opportunities Fund
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A Class B
--------------------------------------------------- -----------
From
Inception
Year Ended June 30, 7/15/94 to
1995 1994 1993 1992 1991 6/30/95
-------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $10.17 $8.00 $7.18 $6.82 $7.56 $10.40
Income from investment
operations:
Net investment income (loss) 0.01(3) 0.01 0.03 0.01(2) 0.23(1) (0.02)(3)
Net realized and unrealized
gain (loss) 0.56 2.19 0.79 0.36 (0.67) 0.30
------- ------- ------ ------- ------- ----------
Total from investment
operations 0.57 2.20 0.82 0.37 (0.44) 0.28
------- ------- ------ ------- ------- ----------
Less distributions:
Dividends from net investment
income -- (0.03) -- (0.01) (0.30) --
Dividends from net realized
gains (1.37) -- -- -- -- (1.37)
In excess of net realized
gains (0.33) -- -- -- -- (0.33)
------- ------- ------ ------- ------- ----------
Total distributions (1.70) (0.03) -- (0.01) (0.30) (1.70)
------- ------- ------ ------- ------- ----------
Change in net asset value (1.13) 2.17 0.82 0.36 (0.74) (1.42)
------- ------- ------ ------- ------- ----------
Net asset value, end of period $ 9.04 $10.17 $8.00 $7.18 $6.82 $8.98
======= ======= ====== ======= ======= ==========
Total return( (4)) 6.53% 27.46% 11.42% 5.43% -5.27% 3.54%(5)
Ratios/supplemental data:
Net assets, end of period
(thousands) $126,481 $118,707 $88,870 $63,354 $59,874 $2,849
Ratio to average net assets
of:
Operating expenses 1.80% 1.50% 1.88% 2.15(2) 1.75(1) 2.61%(6)
Net investment income 0.16% 0.09% 0.61% 0.16% 3.46% (0.33)%(6)
Portfolio turnover 277% 259% 95% 51% 76% 277%
</TABLE>
(1) Net investment income would have been $.22 and the ratio of operating
expenses to average net assets would have been 1.89% for the year ended June
30, 1991, had the Manager not reimbursed a portion of its management fees,
pursuant to the then applicable expense limitations.
(2) Net investment income would have been the same $.01 and the ratio of
operating expenses to average net assets would have been 2.18% for the year
ended June 30, 1992, had the subadviser not reimbursed a portion of its
management fees.
(3) Computed using the monthly average number of shares outstanding during
the period.
(4) Maximum sales load is not reflected in the total return calculation
(5) Not annualized
(6) Annualized
See Notes to Financial Statements
9
<PAGE>
PHOENIX WORLDWIDE OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 1995
1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix Worldwide Opportunities Fund ("the Fund") 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. The Fund offers both Class A and Class B shares. Class A shares are
sold with a front-end sales charge of up to 4.75%. Class B shares are sold
with a contingent deferred sales charge which declines from 5% to zero
depending on the period of time the shares are held. Both classes of shares
have identical voting, dividend, liquidation and other rights and the same
terms and conditions, except that each class bears different distribution
expenses and has exclusive voting rights with respect to its distribution
plan. Income and expenses of the Fund are borne pro rata by the holders of
both classes of shares, except that each class bears distribution expenses
unique to that class.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
A. Security valuation:
Securities listed or traded on a national securities exchange or foreign
exchange are valued at the last sale price, or if there had been no sale of
the security on that day, at the mean between the last bid and asked prices,
and if no active market exists, at the bid price. Short-term investments
having a remaining maturity of less than sixty days 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.
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. Realized gains and losses from
investment transactions are reported on the identified cost basis.
C. Income taxes:
It is the policy of the Fund to comply with the requirements of the Internal
Revenue Code (the "Code"), applicable to regulated investment companies, and
to distribute substantially all of its taxable income to its shareholders. In
addition, the 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 to shareholders are recorded on the ex-dividend date. Income
and capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences include the treatment of non-taxable dividends, expiring
capital loss carryforwards, foreign currency gain/loss, partnerships, and
losses deferred due to wash sales and excise tax regulations. Permanent book
and tax basis differences relating to shareholder distributions will result
in reclassifications to paid in capital.
E. Foreign currency translation:
Foreign securities and 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 date of settlement. 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 Fund 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:
The 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 and to manage the Fund's currency exposure.
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.
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 the 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.
10
<PAGE>
PHOENIX WORLDWIDE OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 1995 (Continued)
2. INVESTMENT ADVISORY FEES AND RELATED PARTY TRANSACTIONS
As compensation for its services to the Fund, the Investment Adviser,
National Securities and Research Corporation, an indirect wholly-owned
subsidiary of Phoenix Home Life Mutual Insurance Company ("PHL"), is entitled
to a fee at an annual rate of 0.75% of the average daily net assets of the
Fund for the first $1 billion.
As Distributor of the Fund's shares, Phoenix Equity Planning Corp.
("PEPCO"), an indirect wholly-owned subsidiary of PHL, has advised the Fund
that it received selling commissions of $15,350 for Class A shares and
deferred sales charges of $7,394 for Class B shares for the year ended June
30, 1995. In addition, the Fund pays PEPCO a distribution fee at an annual
rate of 0.25% for Class A shares and 1.00% for Class B shares of the average
daily net assets of the Fund. The Distribution Plan for Class A shares
provides for fees to be paid up to a maximum on an annual basis of 0.30%; the
Distributor has voluntarily agreed to limit the fee to 0.25%. The Distributor
has advised the Fund that of the total amount expensed for the year ended
June 30, 1995, $68,521 was earned by the Distributor and $267,654 was earned
by unaffiliated participants.
As Financial Agent of the Fund, PEPCO receives a fee at an annual rate of
0.03% of the average daily net assets of the Fund for bookkeeping,
administration and pricing services. PEPCO serves as the Fund's Transfer
Agent with State Street Bank and Trust Company as sub-transfer agent. For the
year ended June 30, 1995, transfer agent fees were $418,739 of which PEPCO
retained $146,583 which is net of the fees paid to State Street.
At June 30, 1995, PHL and affiliates held 148 Class A shares and 1 Class B
share of the Fund with a combined value of $1,347.
3. PURCHASE AND SALE OF SECURITIES
Portfolio purchases and sales of investments, excluding short-term
securities, for the year ended June 30, 1995, aggregated $320,090,046 and
$292,364,818, respectively. There were no purchases or sales of long-term
U.S. Government securities.
4. FORWARD CURRENCY CONTRACTS
As of June 30, 1995, the Fund had entered into the following forward
currency contracts which contractually obligate the Fund to deliver currencies
at specified dates:
<TABLE>
<CAPTION>
Net
Contracts In Unrealized
to Exchange Settlement Appreciation
Deliver For Date Value (Depreciation)
-------------- ------------ --------- ---------- -------------
<S> <C> <C> <C> <C>
AUD 1,500,000 USD 1,089,000 8/1/95 $1,060,431 $ 28,569
FRF 32,500,000 USD 6,279,950 9/1/95 6,679,471 (399,521)
YEN 460,000,000 USD 5,369,441 9/1/95 5,464,156 (94,715)
SEK 13,200,000 USD 1,809,186 7/3/95 1,812,455 (3,269)
SEK 48,700,000 USD 6,653,460 8/1/95 6,674,611 (21,151)
USD 1,830,841 SEK 13,200,000 7/3/95 1,812,455 (18,386)
USD 1,344,287 SEK 9,900,000 8/1/95 1,356,851 12,564
USD 1,195,603 SEK 8,800,000 8/1/95 1,206,089 10,486
-------------
$(485,423)
=============
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
AUD = Australian Dollar
FRF = French Franc
SEK = Swedish Krona
USD = U.S. Dollar
YEN = Japanese Yen
</TABLE>
5. RECLASS OF CAPITAL ACCOUNTS
The Fund has recorded several reclassifications in the capital accounts.
These reclassifications have no impact on the net asset value of the Fund 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.
For the year ended June 30, 1995, the Fund has decreased capital paid in on
shares of beneficial interest by $4,346,354, and increased distributions in
excess of net investment income by $690,036 and decreased accumulated net
realized losses by $5,036,390.
6. POST-OCTOBER LOSS CARRYOVERS
Under current tax law, net capital losses and net foreign currency losses
realized after October 31, 1994 may be deferred and treated as occurring on
the first day of the following fiscal year. For the year ended June 30, 1995,
the Fund elected to defer $3,593,517 of net capital losses and $1,256,542 of
net foreign currency losses occurring between November 1, 1994 and June 30,
1995.
TAX INFORMATION NOTICE (UNAUDITED)
For the fiscal year ended June 30, 1995, the Fund distributed long-term
capital gains dividends of $8,230,420.
11
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
To the Trustees and Shareholders of
Phoenix Worldwide Opportunities Fund
In our opinion, the accompanying statement of assets and liabilities,
including the schedule 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 Worldwide
Opportunities Fund (the "Fund") at June 30, 1995, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each
of the periods indicated, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. We believe that our audits,
which included confirmation of securities at June 30, 1995 by correspondence
with the custodian and brokers, and the application of alternative auditing
procedures where confirmations from brokers were not received, provide a
reasonable basis for the opinion expressed above.
[Price Waterhouse Signature]
Boston, Massachusetts
August 10, 1995
12
<PAGE>
PHOENIX WORLDWIDE OPPORTUNITIES FUND
101 Munson Street
Greenfield, Massachusetts 01301
Trustees
C. Duane Blinn
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Leroy Keith, Jr.
Philip R. McLoughlin
James M. Oates
Philip R. Reynolds
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
Officers
Philip R. McLoughlin, President
Martin J. Gavin, Executive Vice President
James M. Dolan, Vice President
Jeanne H. Dorey, Vice President
William R. Moyer, Vice President
Leonard J. Saltiel, Vice President
John T. Wilson, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Investment Adviser
National Securities & Research Corporation
One American Row
Hartford, Connecticut 06115-2520
Principal Underwriter
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
Transfer Agent
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, Massachusetts 02109
Legal Counsel
Dechert, Price & Rhoads
1500 K Street, N.W.
Washington, D.C. 20005-1208
Independent Accountants
Price Waterhouse LLP
160 Federal Street
Boston, Massachusetts 02110
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
<PAGE>
PHOENIX FUNDS
PHOENIX WORLDWIDE OPPORTUNITIES FUND
ANNUAL REPORT
JUNE 30, 1995
[Old Dollar Graphic]
[Phoenix Logo] Phoenix Investments
Phoenix Worldwide Opportunities Fund
P.O. Box 2200
Enfield, CT 06083-2200
[Phoenix Logo] Phoenix Investments
PEP 758 (8/95)
Bulk Rate Mail
U.S. Postage
PAID
Springfield, MA
Permit No. 444
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<ARTICLE> 6
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<NAME> PHOENIX WORLDWIDE OPPORTUNITIES FUND
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<NAME> PHOENIX WORLDWIDE OPPORTUNITIES FUND
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