[cover]
JUNE 30, 1996
Phoenix Worldwide
Opportunities Fund
Annual Report
[Phoenix Duff & Phelps logo]
PHOENIX ANNUAL REPORT
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
PHOENIX WORLDWIDE OPPORTUNITIES FUND
Fund Description
Phoenix Worldwide Opportunities Fund invests in a diversified portfolio of
securities representing companies and governments located throughout the
world. The Fund does not limit its investments to any particular regions of
the world or issuers of any particular size. The portfolio 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
Most equity markets, both in the U.S. and abroad, performed well over the
last twelve months. In Europe, economic growth has generally been
disappointing. Fortunately, continued reductions in short-term interest rates
throughout the region, as well as declining long-term rates in the peripheral
European countries of Spain, Italy and Scandinavia, have supported market
performance. Over the last twelve months, the Morgan Stanley Capital
International Europe Index earned 15.15%.
Latin American markets also provided big gains during this reporting
cycle, helped by improving investor sentiment and falling interest rates.
Although economic growth is barely positive in the large economies of Mexico,
Brazil, and Argentina, inflation has remained well under control.
Additionally, capital inflows have once again resumed, allowing interest
rates and risk premiums to fall in a number of these countries.
The economic outlook in Japan has continued to improve at a very slow, but
steady pace. Despite several political and policy setbacks over the last
twelve months, the Japanese stock market, as measured by the Morgan Stanley
Capital International Japan Index, gained 11.24%. Earnings forecasts were
generally revised upward throughout the first quarter, and the continued
weakness of the yen boosted both investor sentiment and economic growth.
Consumer spending has also finally picked up and the government has made it
clear that there is no need to raise interest rates anytime soon.
Generally speaking, markets in Asia were strong performers, but results
varied widely by country. Hong Kong, Indonesia, and Taiwan posted excellent
returns over this reporting period, while Korea and Thailand clearly
struggled. Overall, upward pressure on interest rates was modest and markets
in this region performed well, aided by high corporate earnings growth.
Lastly, moderate economic growth and low inflation in the United States
provided support for a strong market rally. Over the last twelve months, the
U.S. stock market as measured by the Standard & Poor's 500 Composite Stock
Index, posted an impressive 26.12% return. Although rising interest rates,
slower earnings growth and increased market volatility have recently become
part of the investment landscape, strong mutual fund inflows continued to
push stock prices higher as this reporting period came to a close.
Portfolio Review
Phoenix Worldwide Opportunities Fund posted strong results over this
reporting period, coming in well ahead of the market. For the twelve months
ended June 30, 1996, the Fund's Class A shares provided a total return of
21.39% and Class B shares returned 20.50%. As measured by the Morgan Stanley
Capital International World (net) Index, global equity markets gained 18.44%
for the same period. All of these figures assume reinvestment of any
distributions, but exclude the effect of sales charges.
A number of factors contributed to the Fund's outstanding performance,
including our overweighted position and very strong stock selection in
Europe, as well as the portfolio's significant exposure to Asia and Latin
America. Also boosting results were the Fund's underweighting in Japan and
its currency hedges against the Japanese yen and several European currencies.
Outlook
We expect most foreign markets will continue to perform well in 1996.
Outside the United States, the developed economies of Europe and Japan are
growing below trend, employment growth is less than robust and there is
little inflationary pressure. Additionally, most of these economies are
operating with industrial production well below full capacity. Given this
environment, we believe that over the long term, growth stocks will provide
the most attractive investment opportunities. Our stock selection will
continue to focus on a number of compelling investment themes including
Corporate Restructuring/Creating Shareholder Value, Move to
Outsourcing/Growth in Services, Deregulating Telecommunications, and the Rise
of the Global Consumer.
In the United States, interest rates and earnings, the two major
underpinnings of the market, have recently come into question causing
investors to rotate into more stable, large capitalization stocks. As
speculation abounds as to the actual strength of the U.S. economy, the
portfolio continues to focus on our high conviction investment themes.
Current themes of interest include beneficiaries of the PCS infrastructure
buildout and high growth telecommunications services companies.
In terms of geographical exposure, we expect the portfolio to remain
overweighted in Asia, Latin America, and to a lesser degree, Europe. Although
the Asian and Emerging markets may take a short-term breather after their six
months of strong performance, they still offer excellent long-term growth
potential. Additionally, while the portfolio is currently underweighted in
Japan, we will consider increasing our exposure to this country if economic
growth continues to accelerate. Overall, we believe the Fund is well
positioned for the remainder of the year.
1
<PAGE>
[typeset representation of line chart]
Phoenix Worldwide Standard
Opportunities Fund MSCI World & Poor's 500
Class A (net) Index** Stock Index*
6/30/86 9522 10000 10000
6/30/87 10337 12509 14241
6/30/88 9666 11619 14091
6/30/89 9220 13989 15850
6/30/90 9421 16273 16974
6/30/91 8925 17476 16143
6/30/92 9409 19829 16825
6/30/93 10484 22527 19644
6/30/94 13362 22828 21656
6/30/95 14235 28789 23966
6/30/96 17280 36308 28385
[end line chart]
Average Annual Total Returns for the Periods Ending 6/30/96
<TABLE>
<CAPTION>
From Inception
7/15/94 to
1 Year 5 Years 10 Years 6/30/96
- ------------------------------ --------- --------- --------- --------------
<S> <C> <C> <C> <C>
Class A with 4.75% sales charge 15.63% 13.02% 5.62% --
- ------------------------------ ------- ------- ------- ------------
Class A at net asset value 21.39% 14.13% 6.14% --
- ------------------------------ ------- ------- ------- ------------
Class B with CDSC 15.50% -- -- 10.16%
- ------------------------------ ------- ------- ------- ------------
Class B at net asset value 20.50% -- -- 11.95%
- ------------------------------ ------- ------- ------- ------------
S&P 500 Index* 26.12% 15.75% 13.76% 25.17%
- ------------------------------ ------- ------- ------- ------------
The Morgan Stanley Capital
International World Index** 18.44% 11.95% 11.00% 14.04%***
- ------------------------------ ------- ------- ------- ------------
</TABLE>
This chart assumes an initial investment of $10,000 made on 6/30/86 for Class
A shares. The total return for Class A shares reflects the maximum sales
charge of 4.75% on the initial investment and assumes reinvestment of
dividends and capital gains. Class B share performance will be greater or
less than that shown based on differences in inception date, fees and sales
charges. The total return (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). Returns indicate past
performance, which is not predictive of future performance. Investment return
and net asset 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 500 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 index's performance does not reflect sales
charges. The returns are after withholding taxes for foreign investors.
***From 7/31/94 to 6/30/96.
2
<PAGE>
Phoenix Worldwide Opportunities Fund
SCHEDULE OF INVESTMENTS
June 30, 1996
SHARES VALUE
------ -------------
COMMON STOCKS--87.6%
Belgium--0.6%
Barco Industries NV (Electronics) 6,000 $ 961,413
-----------
Brazil--1.3%
Telebras Sponsor ADR
(Utility--Telephone) (b) 28,600 1,991,275
-----------
Finland--0.6%
UPM-Kymmene Corp. (Paper & Forest
Products) (b) 43,200 893,588
-----------
France--4.4%
BIC SA (Entertainment, Leisure &
Gaming) (b) 12,000 1,703,963
Christian Dior SA (Conglomerates) 10,000 1,301,476
Rexel (Electrical Equipment) 5,150 1,422,552
SGS-Thomson Microelectronics ADR
(Electrical Equipment) (b) 38,700 1,388,363
SGS-Thomson Microelectronics NV
(Electrical Equipment) (b) 3,013 105,935
Usinor Sacilor (Metals-Steel) 54,000 778,846
-----------
6,701,135
-----------
Germany--5.3%
Adidas AG (Textile & Apparel) 25,500 2,142,730
Degussa AG (Conglomerates) 1,900 644,984
Hoechst (Chemicals) 46,000 1,559,424
Mannesmann AG (Conglomerates) 3,800 1,313,186
SGL Carbon AG (Chemicals) (b) 19,800 2,315,485
-----------
7,975,809
-----------
Hong Kong--4.8%
Cheung Kong Holdings Ltd. (Real
Estate) 251,000 1,807,797
Dao Heng Bank Group Ltd. (Banks) 190,000 733,932
First Pacific Co. (Conglomerates) 949,082 1,459,089
Guoco Group Ltd. (Diversified
Financial Services) 242,000 1,153,646
Henderson China Holdings Ltd.
(Real Estate) 768 1,716
Henderson Land Development Co. Ltd.
(Real Estate) 96,000 719,333
Hutchison Whampoa (Conglomerates) 36,000 226,497
New World Development (Real Estate) 251,500 1,166,443
-----------
7,268,453
-----------
Indonesia--0.9%
PT Semen Gresik (Building & Materials) 332,500 967,888
Wicaksana Overseas (Wholesale &
Distribution) 158,000 434,472
-----------
1,402,360
-----------
Italy--2.5%
Fila Holding SPA ADR (Textile &
Apparel) 9,500 $ 819,375
Gucci Group NV-NY (Textile & Apparel) 21,000 1,354,500
Mediolanum SPA (Insurance) (b) 50,000 497,407
Telecom Italia Mobile DRNC
(Utility--Telephone Cellular) 747,500 1,019,129
Telecom Italia Mobile SPA
(Utility--Telephone Cellular) 44,000 98,307
-----------
3,788,718
-----------
Japan--12.8%
Bank of Tokyo--Mitsubishi (Banks) 42,000 972,635
Circle K Japan Co. Ltd. (Retail--Food) 28,000 1,450,018
DDI Corporation (Utility--Telephone
Cellular) 200 1,743,231
Jusco Co. (Retail--Food) 49,000 1,603,827
Keyence Corp. Ltd. (Electronics) 9,000 1,222,632
Mitsubishi Estate Co. Ltd. (Real
Estate) 67,000 922,399
Mitsubishi Heavy Industries Ltd.
(Machinery) 125,000 1,086,100
Nippon Television Network (Publishing,
Broadcasting, Printing & Cable) 5,000 1,549,944
NKK Corp. (Metals & Mining) (b) 493,000 1,492,286
OSG Corp. (Machinery) 125,000 958,458
Sony Corp. (Conglomerates) 27,000 1,774,868
TDK Corporation (Electronics) 24,000 1,431,054
Toyoda Machine Works (Machinery ) 149,000 1,603,006
Toyota Motor Corp. (Autos & Trucks) 62,000 1,548,850
-----------
19,359,308
-----------
Mexico--1.5%
Grupo Televisa SA GDR (Publishing,
Broadcasting, Printing & Cable) (b) 54,700 1,682,025
Panamerican Beverages, Inc.
(Beverages) 13,500 604,125
-----------
2,286,150
-----------
Netherlands--3.6%
Ahrend Groep NV (Office & Business
Equipment) 28,347 1,270,458
Heineken NV (Beverages) 4,800 1,072,541
IHC Caland NV (Oil Service &
Equipment) 37,000 1,820,845
Oce-Van der Grinten NV-Venlo (Office &
Business Equipment) 12,000 1,271,076
-----------
5,434,920
-----------
Norway--1.2%
Smedvig (Energy) 80,000 1,853,363
-----------
Peru--0.8%
CPT B Pen (Utility--Telephone) 617,014 1,253,539
-----------
See Notes to Financial Statements
3
<PAGE>
Phoenix Worldwide Opportunities Fund
SHARES VALUE
------ -------------
Portugal--1.1%
Portugal Telecom SA
(Utility--Telephone) 65,400 $ 1,708,301
-----------
Singapore--0.9%
Far East Levingston Shipbuilding Ltd.
(Oil Service & Equipment) 242,000 1,337,395
-----------
South Korea--3.4%
Daegu Bank (Banks) 63,060 913,591
Hana Bank (Banks) 46,789 827,832
Korea First Bank (Banks) (b) 147,500 1,218,296
Korea Mobile Telecommunications
(Utility--Telephone Cellular) 1,730 1,979,156
Samsung Electronics Ltd. GDR 144A
(Electronics) (c) 167 8,517
Samsung Electronics Voting GDR 144A
(Electronics) (c) 555 28,028
Shinhan Bank (Banks) 9,610 219,170
-----------
5,194,590
-----------
Spain--0.9%
Telefonica De Espana Ord.
(Utility--Telephone) 76,000 1,398,945
-----------
Sweden--2.7%
Astra AB Series A (Health Care--Drugs) 29,000 1,280,556
Frontec AB (Computer Software &
Services) (b) 88,000 1,080,869
Svedala Industri AB (Machinery) 88,000 1,664,406
-----------
4,025,831
-----------
Switzerland--2.6%
Sandoz AG (Health Care--Drugs) 2,200 2,515,340
Swiss Reinsurance-Reg. (Insurance) (b) 1,320 1,355,225
-----------
3,870,565
-----------
Taiwan--2.1%
China Bills Finance Corp. (Commercial
Finance) 135,000 148,152
Evergreen Marine (Transportation) 128,800 259,761
Fuh Hwa Securities Finance
(Broker--Dealers) 163,000 325,774
Taiwan Semiconductor (Electronics) (b) 276,800 578,362
Ton Yi Industrial Corp. (Building &
Materials) (b) 625,000 997,035
Yang Ming Marine Transport
(Transportation) 633,000 933,890
-----------
3,242,974
-----------
Thailand--0.7%
Krung Thai Bank Public Co. Ltd.
(Banks) 121,000 566,908
Land & House Co. Ltd. (Real Estate
Development) 38,500 485,055
-----------
1,051,963
-----------
United Kingdom--9.6%
British Aerospace Ord. (Aerospace &
Defense) 109,700 $ 1,665,531
British Airways PLC (Airlines) 61,000 525,159
Carlton Communications PLC
(Publishing, Broadcasting, Printing &
Cable) 196,000 1,577,747
Compass Group PLC (Lodging &
Restaurants) 147,000 1,345,501
Granada Group PLC (Entertainment,
Leisure & Gaming) 87,000 1,165,408
Hays PLC (Professional Services) 160,000 1,126,340
Next PLC (Retail) 148,000 1,294,856
Orange PLC (Utility--Telephone
Cellular) (b) 330,000 1,156,410
Standard Chartered PLC (Diversified
Financial Services) 176,000 1,753,162
Vodafone Group PLC (Utility--Telephone
Cellular) 215,000 800,194
WPP Group (Advertising) 658,000 2,198,446
-----------
14,608,754
-----------
United States--23.3%
ACC Corporation (Utility--
Telephone) (b) 53,000 2,577,125
Bio-Rad Laboratories, Inc. (Medical
Products & Supplies) (b) 55,500 1,991,063
Capstone Pharmacy Services (Health
Care--Drugs) (b) 110,000 1,416,250
Check Point Software Technologies,
Ltd. (Computer Software & Services)
(b) 20,000 480,000
Chesapeake Energy Corp. (Energy) (b) 14,000 1,258,250
Cliffs Drilling Company (Oil Service &
Equipment) (b) 65,000 2,210,000
Digital Microwave Corp.
(Telecommunications Equipment) (b) 55,000 914,375
Donna Karan International, Inc.
(Textile & Apparel) (b) 15,000 420,000
Ensco International, Inc. (Oil Service
& Equipment) (b) 80,000 2,600,000
Falcon Drilling Company, Inc. (Oil
Service & Equipment) (b) 31,000 840,875
Gemstar International Group Limited
(Electronics) 55,900 1,677,000
Home Shopping Network (Retail) (b) 100,000 1,200,000
IntelCom Group, Inc.
(Utility--Telephone) (b) 50,000 1,250,000
Latin American Discovery Fund, Inc.
(Multi-Industry) 110,000 1,388,750
Microsoft Corp. (Computer Software &
Services) (b) 15,000 1,801,875
Newbridge Networks Corp.
(Telecommunications Equipment) (b) 17,500 1,146,250
Orion Network Systems, Inc.
(Telecommunications Equipment) (b) 100,000 1,075,000
Panamsat Corp. (Telecommunications)
(b) 80,000 2,320,000
See Notes to Financial Statements
4
<PAGE>
Phoenix Worldwide Opportunities Fund
SHARES VALUE
------ -------------
United States--(continued)
P-Com, Inc. (Telecommunications
Equipment) (b) 30,000 $ 945,000
Pride Petroleum Services, Inc.
(Oil Service & Equipment) (b) 125,000 1,781,250
Reading & Bates Corp. (Oil Service &
Equipment) (b) 34,000 752,250
RMI Titanium Co. (Metals & Mining) (b) 100,000 2,350,000
Sawtek, Inc. (Electronics) (b) 35,000 1,207,500
Teleport Communications Group, Inc.
(Utility--Telephone) (b) 35,000 669,375
Transition Systems, Inc. (Computer
Software & Services) (b) 40,000 1,140,000
-----------
35,412,188
-----------
TOTAL COMMON STOCKS
(Identified cost $116,548,900) 133,021,537
-----------
PREFERRED STOCKS--0.5%
Germany
Wella AG Preferred (Cosmetics & Soaps) 1,250 730,898
-----------
TOTAL PREFERRED STOCKS
(Identified cost $736,210) 730,898
-----------
RIGHTS--0.0%
South Korea
Hana Bank-Rights (Banks) 46,789 43,433
-----------
TOTAL RIGHTS
(Identified cost $0) 43,433
-----------
TOTAL LONG-TERM INVESTMENTS--88.1%
(Identified cost $117,285,110) 133,795,868
-----------
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
-------------- ----- -------------
SHORT-TERM OBLIGATIONS--9.9%
Commercial Paper--7.1%
GTE North 5.35%,
7-2-96 A-1+ $2,970 $ 2,969,559
Bellsouth
Telecommunications,
Inc. 5.34%, 7-10-96 A-1+ 4,200 4,194,393
Corporate
Receivables (CRC)
5.34%, 7-12-96 A-1 2,000 1,996,737
Abbott Laboratories
5.33%, 7-25-96 (d) A-1+ 1,670 1,664,066
--------
10,824,755
--------
Federal Agency Securities--2.8%
Federal National
Mortgage Assoc.
5.25%, 7-3-96 4,155 4,153,788
--------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $14,978,543) 14,978,543
-----------
TOTAL INVESTMENTS--98.0%
(Identified cost $132,263,653) 148,774,411(a)
Cash and receivables, less
liabilities--2.0% 2,986,621
-----------
NET ASSETS--100.0% $151,761,032
===========
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $19,549,284 and gross
depreciation of $3,060,921 for federal income tax purposes. At June 30,
1996, the aggregate cost of securities for federal income tax purposes
was $132,286,048.
(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 June 30,
1996 these securities amounted to a value of $36,545 or 0.02% of net
assets.
(d) Segregated as collateral for forward currency contracts.
See Notes to Financial Statements
5
<PAGE>
Phoenix Worldwide Opportunities Fund
INDUSTRY DIVERSIFICATION
As a percentage of Total Long-Term Investments
(Unaudited)
Advertising 1.6%
Aerospace & Defense 1.2
Airlines 0.4
Autos & Trucks 1.2
Banks 4.1
Beverages 1.3
Broker--Dealers 0.2
Building & Materials 1.5
Chemicals 2.9
Commercial Finance 0.1
Computer Software & Services 3.4
Conglomerates 5.0
Cosmetics & Soaps 0.6
Diversified Financial Services 2.2
Electrical Equipment 2.2
Electronics 5.3
Energy 2.3
Entertainment, Leisure & Gaming 2.1
Health Care--Drugs 3.9
Insurance 1.4
Lodging & Restaurants 1.0
Machinery 4.0
Medical Products & Supplies 1.5
Metals & Mining 2.9
Metals--Steel 0.6
Multi-Industry 1.0
Office & Business Equipment 1.9
Oil Service & Equipment 8.5
Paper & Forest Products 0.7
Professional Services 0.8
Publishing, Broadcasting, Printing & Cable 3.6
Real Estate 3.8
Retail 1.9
Retail--Food 2.3
Telecommunications 1.7
Telecommunications Equipment 3.0
Textile & Apparel 3.5
Transportation 0.9
Utility--Telephone 8.1
Utility--Telephone Cellular 5.1
Wholesale & Distribution 0.3
----
100.0%
====
See Notes to Financial Statements
6
<PAGE>
Phoenix Worldwide Opportunities Fund
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996
Assets
Investment securities at value
(Identified cost $132,263,653) $148,774,411
Foreign currency at value
(Identified cost $1,952,073) 1,942,154
Cash 1,058
Receivables
Investment securities sold 1,109,454
Fund shares sold 2,175,757
Dividends and interest 187,363
Tax reclaim 74,978
Net unrealized appreciation on
forward currency contracts 510,817
-----------
Total assets 154,775,992
-----------
Liabilities
Payables
Investment securities purchased 2,372,434
Fund shares repurchased 171,653
Closed foreign currency contracts 84,170
Transfer agent fee 114,337
Investment advisory fee 91,937
Distribution fee 33,968
Trustees' fee 6,009
Financial agent fee 3,677
Accrued expenses 136,775
-----------
Total liabilities 3,014,960
-----------
Net Assets $151,761,032
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $125,105,128
Undistributed net investment income 85,217
Accumulated net realized gains 9,570,265
Net unrealized appreciation 17,000,422
-----------
Net Assets $151,761,032
===========
Class A
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$146,052,477) 14,189,700
Net asset value per share $10.29
Offering price per share
$10.29/(1-4.75%) $10.80
Class B
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$5,708,555) 563,077
Net asset value and offering price per share $10.14
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1996
Investment Income
Dividends (net of $129,651 foreign withholding tax) $ 1,334,934
Interest 610,333
---------
Total investment income 1,945,267
---------
Expenses
Investment advisory fee 1,037,386
Distribution fee--Class A 335,903
Distribution fee--Class B 39,567
Financial agent fee 41,495
Transfer agent 438,735
Custodian 201,521
Registration 44,955
Professional 31,532
Printing 29,742
Trustees 21,285
Miscellaneous 14,531
---------
Total expenses 2,236,652
---------
Net investment loss (291,385)
---------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 21,371,140
Net realized gain on foreign currency transactions 1,164,870
Net change in unrealized appreciation (depreciation)
on investments 3,713,171
Net change in unrealized appreciation (depreciation)
on foreign currency and foreign currency
transactions 956,591
---------
Net gain on investments 27,205,772
---------
Net increase in net assets resulting from operations $26,914,387
=========
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, 1996 June 30, 1995
--------------- ----------------
<S> <C> <C>
From Operations
Net investment income (loss) $ (291,385) $ 193,728
Net realized gain (loss) 22,536,010 (536,147)
Net change in unrealized appreciation (depreciation) 4,669,762 7,441,668
------------- ---------------
Increase in net assets resulting from operations 26,914,387 7,099,249
------------- ---------------
From Distributions to Shareholders
Net realized gains--Class A (7,904,822) (18,002,670)
Net realized gains--Class B (220,021) (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 (8,124,843) (22,570,853)
------------- ---------------
From Share Transactions
Class A
Proceeds from sales of shares (9,725,785 and 5,285,785
shares, respectively) 94,334,086 52,416,520
Net asset value of shares issued from reinvestment of
distributions (764,481 and 2,202,325 shares, respectively) 6,849,750 18,851,905
Cost of shares repurchased (10,285,880 and 5,169,653
shares, respectively) (99,875,851) (48,268,641)
------------- ---------------
Total 1,307,985 22,999,784
------------- ---------------
Class B
Proceeds from sales of shares (318,603 and 348,307 shares,
respectively) 3,048,479 3,376,929
Net asset value of shares issued from reinvestment of
distributions (20,140 and 25,057 shares, respectively) 178,437 213,734
Cost of shares repurchased (92,969 and 56,061 shares,
respectively) (893,724) (495,588)
------------- ---------------
Total 2,333,192 3,095,075
------------- ---------------
Increase in net assets from share transactions 3,641,177 26,094,859
------------- ---------------
Net increase in net assets 22,430,721 10,623,255
Net Assets
Beginning of period 129,330,311 118,707,056
------------- ---------------
End of period (including undistributed net investment
income and distributions in excess of net investment
income of $85,217 and ($870,783), respectively) $151,761,032 $129,330,311
============= ===============
</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
---------------------------------------------------------------
Year Ended June 30,
1996 1995 1994 1993 1992
- ------------------------------------ --------- --------- --------- --------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.04 $10.17 $8.00 $7.18 $6.82
Income from investment operations:
Net investment income (loss) (0.02)((1)) 0.01((1)) 0.01 0.03 0.01((5))
Net realized and unrealized gain 1.87 0.56 2.19 0.79 0.36
------- ------- ------- ------- ---------
Total from investment operations 1.85 0.57 2.20 0.82 0.37
------- ------- ------- ------- ---------
Less distributions:
Dividends from net investment
income -- -- (0.03) -- (0.01)
Dividends from net realized gains (0.60) (1.37) -- -- --
In excess of net realized gains -- (0.33) -- -- --
------- ------- ------- ------- ---------
Total distributions (0.60) (1.70) (0.03) -- (0.01)
------- ------- ------- ------- ---------
Change in net asset value 1.25 (1.13) 2.17 0.82 0.36
------- ------- ------- ------- ---------
Net asset value, end of period $10.29 $9.04 $10.17 $8.00 $7.18
======= ======= ======= ======= =========
Total return (2) 21.39% 6.53% 27.46% 11.42% 5.43%
Ratios/supplemental data:
Net assets, end of period
(thousands) $146,052 $126,481 $118,707 $88,870 $63,354
Ratio to average net assets of:
Operating expenses 1.60% 1.80% 1.50% 1.88% 2.15%((5))
Net investment income (loss) (0.19)% 0.16% 0.09% 0.61% 0.16%
Portfolio turnover 245% 277% 259% 95% 51%
</TABLE>
Class B
---------------------------
From
Year Inception
Ended 7/15/94 to
6/30/96 6/30/95
----------- -------------
Net asset value, beginning of period $8.98 $10.40
Income from investment operations:
Net investment income (loss) (0.08)((1)) (0.02)((1))
Net realized and unrealized gain 1.84 0.30
--------- -----------
Total from investment operations 1.76 0.28
--------- -----------
Less distributions:
Dividends from net investment
income -- --
Dividends from net realized gains (0.60) (1.37)
In excess of net realized gains -- (0.33)
--------- -----------
Total distributions (0.60) (1.70)
--------- -----------
Change in net asset value 1.16 (1.42)
--------- -----------
Net asset value, end of period $10.14 $8.98
========= ===========
Total return (2) 20.50% 3.54%((3))
Ratios/supplemental data:
Net assets, end of period
(thousands) $5,709 $2,849
Ratio to average net assets of:
Operating expenses 2.34% 2.61%((4))
Net investment income (loss) (0.86)% (0.33)%((4))
Portfolio turnover 245% 277%
(1) Computed using average shares outstanding.
(2) Maximum sales load is not reflected in the total return calculation.
(3) Not annualized
(4) Annualized
(5) Net investment income would have been the same $0.01 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.
See Notes to Financial Statements
9
<PAGE>
PHOENIX WORLDWIDE OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
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's investment objective is capital appreciation by investing
in equity securities of domestic and non-U.S. issuers. 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. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets, liabilities, revenues and
expenses. Actual results could differ from those estimates.
A. Security valuation:
Equity securities 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 and if no active market exists, at the bid
price. Short-term investments having a remaining maturity of less than 61
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 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
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 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-
10
<PAGE>
PHOENIX WORLDWIDE OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 1996 (Continued)
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 or offset with the
same counterparty, 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 or offset.
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, majority 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 majority owned subsidiary of PHL, has advised the Fund
that it retained net selling commissions of $13,954 for Class A shares and
deferred sales charges of $7,940 for Class B shares for the year ended June
30, 1996. 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, 1996, approximately $134,244 was retained by the Distributor and
$241,226 was paid to 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, 1996, transfer agent fees were $438,735 of which PEPCO
retained $141,495 which is net of the fees paid to State Street.
At June 30, 1996, PHL and affiliates held 158 Class A shares and 1 Class B
share of the Fund with a combined value of $1,635.
3. PURCHASE AND SALE OF SECURITIES
Portfolio purchases and sales of investments, excluding short-term
securities, for the year ended June 30, 1996, aggregated $307,768,111 and
$321,101,621, respectively. There were no purchases or sales of long-term
U.S. Government securities.
4. FORWARD CURRENCY CONTRACTS
As of June 30, 1996, 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>
DM 9,000,000 USD 6,016,043 8/1/96 $5,922,197 $ 93,846
FF 14,600,000 USD 2,829,457 8/1/96 2,841,065 (11,608)
FL 10,000,000 USD 5,871,991 8/1/96 5,870,479 1,512
SF 4,700,000 USD 3,821,138 8/2/96 3,762,741 58,397
YEN 670,000,000 USD 6,268,126 8/1/96 6,127,016 141,110
YEN 1,018,000,000 USD 9,582,980 9/3/96 9,355,420 227,560
-------------
$510,817
=============
</TABLE>
DM = German Deutsche Mark SF = Swiss Franc
FF = French Franc YEN = Japanese Yen
FL = Dutch Florin USD = U.S. Dollar
As of June 30, 1996, the Fund had $1,664,066 in short-term securities
segregated as collateral to cover the open forward currency contracts.
5. CAPITAL LOSS CARRYOVERS
Under current tax law, capital losses realized after October 31, 1995 may be
deferred and treated as occurring on the first day of the following fiscal
year. For the year ended June 30, 1996, the Fund did not defer any losses;
however, the Fund was able to utilize losses deferred in the prior year
against current year capital gains in the amount of $4,850,059.
6. 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, 1996, the Fund has increased undistributed net
investment income by $1,247,385 and decreased accumulated net realized gains
by $1,247,385.
TAX INFORMATION NOTICE (UNAUDITED)
For the fiscal year ended June 30, 1996, the Fund distributed long-term
capital gains dividends of $3,552,516.
11
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[Price Waterhouse LLP logo]
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 (except for bond ratings), and the
related statements of operations and of changes in net assets and the
financial highlights present fairly, in all material respects, the financial
position of Phoenix Worldwide Opportunities Fund (the "Fund") at June 30,
1996, 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, 1996 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
/s/Price Waterhouse LLP
Boston, Massachusetts
August 8, 1996
12
<PAGE>
PHOENIX WORLDWIDE OPPORTUNITIES FUND
101 Munson Street
Greenfield, Massachusetts 01301
Trustees
C. Duane Blinn
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Francis E. Jeffries
Leroy Keith, Jr.
Philip R. McLoughlin
Everett L. Morris
James M. Oates
Calvin J. Pedersen
Philip R. Reynolds
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
Officers
Philip R. McLoughlin, President
Martin J. Gavin, Executive Vice President
Michael E. Haylon, Executive Vice President
William J. Newman, Senior Vice President
James M. Dolan, Vice President
Jeanne H. Dorey, Vice President
William R. Moyer, Vice President
Leonard J. Saltiel, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Investment Adviser
National Securities & Research Corporation
56 Prospect Street
Hartford, Connecticut 06115-0480
Principal Underwriter
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
Transfer Agent
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
Custodian
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 Worldwide Opportunities Fund
P.O. Box 2200
Enfield, CT 06083-2200
[Phoenix Duff & Phelps logo]
PDP 758 (8/96)
Bulk Rate Mail
U.S. Postage
PAID
Springfield, MA
Permit No. 444
[DALBAR logo]
<TABLE> <S> <C>
<ARTICLE> 6
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<NUMBER> 001
<NAME> PHOENIX WORLDWIDE OPPORTUNITIES FUND CL A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> JUN-30-1996
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<NET-CHANGE-FROM-OPS> 26915
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (7905)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 9726
<NUMBER-OF-SHARES-REDEEMED> (10286)
<SHARES-REINVESTED> 765
<NET-CHANGE-IN-ASSETS> (19571)
<ACCUMULATED-NII-PRIOR> 0
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<OVERDISTRIB-NII-PRIOR> 871
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<GROSS-EXPENSE> 2237
<AVERAGE-NET-ASSETS> 138318
<PER-SHARE-NAV-BEGIN> 9.04
<PER-SHARE-NII> (.02)
<PER-SHARE-GAIN-APPREC> 1.87
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.6)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.29
<EXPENSE-RATIO> 1.6
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 002
<NAME> PHOENIX WORLDWIDE OPPORTUNITIES FUND CL B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> JUN-30-1996
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<INVESTMENTS-AT-VALUE> 148774
<RECEIVABLES> 3548
<ASSETS-OTHER> 2454
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 154776
<PAYABLE-FOR-SECURITIES> 2372
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 643
<TOTAL-LIABILITIES> 3015
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 125105
<SHARES-COMMON-STOCK> 563
<SHARES-COMMON-PRIOR> 317
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<EXPENSES-NET> (2237)
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<APPREC-INCREASE-CURRENT> 4670
<NET-CHANGE-FROM-OPS> 26915
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (220)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 319
<NUMBER-OF-SHARES-REDEEMED> (93)
<SHARES-REINVESTED> 20
<NET-CHANGE-IN-ASSETS> (2859)
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<OVERDISTRIB-NII-PRIOR> 871
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<GROSS-EXPENSE> 2237
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<PER-SHARE-NAV-BEGIN> 8.98
<PER-SHARE-NII> (0.08)
<PER-SHARE-GAIN-APPREC> 1.84
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</TABLE>
