[COVER]
Phoenix Funds
Phoenix Worldwide
Opportunities Fund
Semiannual Report
December 31, 1995
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PHOENIX WORLDWIDE OPPORTUNITIES FUND
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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
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
The U.S. equity markets continued to rally during the second half of 1995
and finished the year as one of the best performing markets in the world. The
bull market catalysts were accelerating earnings growth and falling interest
rates. In contrast, stock markets overseas made general upward progress, but
have oscillated throughout this reporting period. These crosscurrents can be
attributed to wide swings in the economic outlook and earnings growth
expectations.
Early in the year, there were worries about overheating economies,
inflation and a shortage of global productive capacity. As the year
progressed, however, investors began to worry about the lack of growth: GDP
in the U.S. did not greatly improve, Europe's growth slowed sharply and Japan
continued to trundle along the bottom. Overall, falling interest rates
greatly assisted equity markets in the second half of the year. The Asian
region was the only area where markets continued to struggle as worries about
too much economic growth and higher interest rates hampered performance for
most of the year.
The volatility of the U.S. dollar had a significant impact on the
performance results. U.S. investors benefited from the declining U.S. dollar
in the first part of 1995, but lost ground as the dollar rebounded during the
second half of the year. In U.S. dollar terms, Finland, Austria and Malaysia
were among the worst performing countries during this six month reporting
period, while Switzerland, Sweden and Spain were among the best.
Portfolio Review
The Fund posted a solid gain for this period, but fell short of the market
index. For the six-months ended December 31, 1995, Class A shares provided a
total return of 9.35% and Class B shares returned 8.86%. As measured by the
Morgan Stanley Capital International World Index, the market gained 10.87%
for the same period. All of these figures assume reinvestment of any
distributions, but exclude the effect of sales charges.
The primary reason for the underperformance was the portfolio's
underweighting in the U.S. market and its overweighting in Southeast Asia.
The Fund benefited from its exposure to Japan, which was increased in July
and August, after the market had bottomed and the outlook for growth and
deregulation of the economy improved. Also helpful was our hedge of yen into
dollars, since the yen depreciated almost 20% over the last six months. Other
areas which contributed to performance were technology and growth stocks in
the U.S. and Europe, including such industry groups as pharmaceuticals,
medical technology and financial services.
Outlook
The powerful forces which drove the U.S. equity markets are diminishing as
we enter the new year. Interest rates are expected to settle into a 6% to 7%
trading range, given that a more accommodative Federal Reserve policy has
been widely anticipated and is already reflected in current prices. The stock
market is also entering a slower earnings growth period, which is likely to
push investors toward companies with more sustainable and predictable
earnings growth. Market leadership may shift to smaller cap stocks as 1996
unfolds, since many of these companies represent young and dynamic industries
with superior growth prospects. Expectations for small cap stocks are low and
potential earnings growth is high, a combination which often leads to
positive earnings surprises and strong performance results.
The forecast for European growth rates has been revised down for 1996 to
approximately 2%. Since we expect interest rates to fall further, the second
half of 1996 may well be stronger. With budget deficits coming down because
of spending restraints, monetary policy is the only option available to
create jobs in European countries.
In Japan, the outlook for 1996 growth has improved. A clearer statement on
bank restructuring is due in January, but individual banks have already taken
the initiative to write off bad loans at a faster pace. This clearing of the
decks, coupled with better-than-expected capital spending and a small
improvement from the consumer as deflation eases, could provide the first GDP
growth above 2% in 1996. This has helped the Japanese stock market
considerably in recent months and we expect further progress to be made.
In Southeast Asia, still the fastest growing part of the world, we expect
GDP growth in 1996 to be only slightly less than in 1995. However, after two
years of very poor performance, we believe 1996 will see an improved market,
providing governments stay the course and let their economies gently cool. We
also believe Latin America is past the worst of its recession, but still
expect growth to be relatively slow in 1996.
Overall, we expect foreign markets to perform well in 1996 due to their
attractive valuations, promising growth prospects and slower earnings
momentum in the United States. We are increasing the Fund's exposure to
economically sensitive areas in the Japanese market, broadening out from the
large exposure to technology which we held through most of 1995. We are
adding selectively to Asia and Latin America holdings as well. In Europe, we
shifted our focus from economically sensitive to growth and interest
rate-sensitive stocks in the fourth quarter--a focus we expect to maintain
until earnings expectations catch up with reality or we see signs of renewed
economic growth.
1
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Phoenix Worldwide Opportunities Fund
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SCHEDULE OF INVESTMENTS
December 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
-------- -------------
<S> <C> <C>
COMMON STOCKS--96.4%
Argentina--2.0%
Quilmes (Beverages) 62,000 $ 967,200
YPF Sociedad Anonima ADR (Energy
Sources) 80,000 1,730,000
-----------
2,697,200
-----------
Australia--1.2%
Australia & New Zealand Banking Group
(Banks) 350,000 1,642,862
-----------
Austria--0.9%
Austria Mikro Systeme International
(Electronics) 7,600 1,233,938
-----------
Chile--1.3%
Enersis S.A. ADR (Utility-Electric) 60,000 1,710,000
-----------
France--3.5%
Christian Dior SA (Conglomerates) 15,100 1,630,330
Rexel (Business & Public Services) 8,200 1,386,704
SGS-Thomson Microelectronics NV
(Electronics) (b) 3,013 115,522
SGS-Thomson Microelectronics ADR
(Electronics) (b) 38,700 1,557,675
-----------
4,690,231
-----------
Germany--5.0%
Adidas AG (Textile & Apparel) (b) 37,500 1,988,716
Gehe AG (Health Care--Drugs) 2,900 1,479,178
Moebel Walther (Retail) 21,000 689,631
SGL Carbon AG (Chemicals) (b) 19,800 1,535,634
Standard Application Software
AG-Vorzug (Computer Software
& Services) 6,100 924,888
-----------
6,618,047
-----------
Hong Kong--6.7%
CDL Hotels International
(Lodging & Restaurants) 1,016,000 512,474
Cheung Kong Holdings Ltd. (Real Estate
Development) 200,000 1,218,329
Dao Heng Bank Group Ltd. (Banks) 200,000 719,099
First Pacific Co. (Conglomerates) 940,000 1,045,539
Guoco Group Ltd. (Diversified Financial
Services) 220,000 1,061,317
HSBC Holdings PLC (Banks) 80,000 1,210,569
Henderson Land Development Corp. (Real
Estate Development) 165,000 994,452
New World Development (Real Estate
Development) 503,000 2,192,359
-----------
8,954,138
-----------
Indonesia--1.6%
Matahari Putra Prima IDR (Retail) 86,000 $ 151,394
PT Astra International (Automobiles) 369,000 766,589
PT Semen Gresik (Building Materials &
Components) 220,000 615,808
Wicaksana Overseas (Wholesale &
Distribution) 220,000 586,942
-----------
2,120,733
-----------
Italy--2.6%
Olivetti (Office & Business Equipment) 2,210,400 1,773,727
Telecom Italia Mobile DRNC
(Utility--Telephone) (b) 1,273,000 1,340,085
Telecom Italia Mobile SPA
(Utility--Telephone) (b) 183,000 322,419
-----------
3,436,231
-----------
Japan--12.0%
Circle K Japan Co. Ltd. (Retail) 7,000 308,769
Daimaru, Inc. (Retail) 197,000 1,527,848
Daiwa Securities Co. Ltd. (Financial
Services) 92,000 1,409,188
Hankyu Department Stores (Retail) 100,000 1,483,254
Keyence Corp. (Electronics) 5,000 576,821
Mitsubishi Bank (Banks) 62,000 1,460,569
Omron Corp. (Electronics) 27,000 622,967
Ricoh Corp. Ltd. (Office & Business
Equipment) 62,000 679,194
Rohm Co. (Electronics) 18,000 1,017,338
Sanwa Bank (Banks) 68,000 1,384,370
Sega Enterprises Ltd. (Entertainment,
Leisure & Gaming) 32,000 1,768,271
Shinko Electric Industries
(Electronics) 31,000 1,250,199
Tokyo Electron Ltd. (Electronics) 26,000 1,008,225
Toyoda Machine Works (Industrial
Components) 149,000 1,437,253
-----------
15,934,266
-----------
Netherlands--4.9%
Ahrend Group CVA (Office & Business
Equipment) 27,500 905,858
Fortis Amev NV (Insurance) 21,500 1,441,918
Heineken NV (Beverages) 6,000 1,065,694
IHC Caland (Oil) 50,000 1,684,447
Randstad Holdings NV (Professional
Services) 30,000 1,362,530
-----------
6,460,447
-----------
Norway--1.3%
Unistorebrand (Insurance) 318,000 1,761,689
-----------
</TABLE>
See Notes to Financial Statements
2
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Phoenix Worldwide Opportunities Fund
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<TABLE>
<CAPTION>
SHARES VALUE
-------- -------------
<S> <C> <C>
Peru--1.2%
CPT B Pen (Utility--Telephone) 775,014 $ 1,665,503
-----------
Philippines--0.2%
Metropolitan Bank & Trust Co. (Banks) 15,043 292,497
-----------
Poland--0.7%
Bank Gdanski (Banks) (b) 98,400 956,940
-----------
Singapore--0.9%
Development Bank of Singapore (Banks) 93,000 1,157,240
-----------
South Korea--2.0%
Hana Bank (Banks) 44,990 937,875
Korea First Bank (Banks) 65,000 578,169
L.G. Electronics (Electronics) 6,000 225,544
Pohang Iron & Steel Co. Ltd.
(Metals--Steel) 12,591 880,530
Samsung Electronics--GDR (Electronics) 216 12,636
Samsung Electronics--GDR 144A
(Electronics) (c) 346 18,640
-----------
2,653,394
-----------
Spain--1.2%
Iberdrola (Utility--Electric) 170,000 1,555,441
-----------
Sweden--5.9%
Astra AB Series A (Health Care--Drugs) 44,000 1,759,416
Autoliv AB Reg. S ORD (Auto & Truck
Parts) 21,500 1,258,752
Frontec AB (Computer Software &
Services) (b) 87,000 2,507,394
Hoganas Series B (Auto & Truck Parts) 79,200 2,318,445
-----------
7,844,007
-----------
Switzerland--3.7%
Ares Serono Group B (Health & Personal
Care) 1,200 844,777
Brown Boveri B Reg. (Electrical
Equipment) 750 873,457
Ciba-Geigy AG Reg. (Health
Care--Diversified) 1,750 1,543,760
Sandoz (Health Care--Drugs) 1,750 1,606,118
-----------
4,868,112
-----------
Taiwan--2.1%
The R.O.C. Taiwan Fund (Multi-
Industry) 160,000 1,680,000
The Taiwan Fund, Inc. (Multi-Industry) 55,000 1,127,500
-----------
2,807,500
-----------
Thailand--2.2%
General Finance & Securities (Financial
Services) 121,000 557,223
Krung Thai Bank (Banks) 121,000 499,579
Land & House Co. Ltd. (Real Estate
Development) 38,500 632,771
PTT Exploration & Production (Oil) 114,500 1,200,038
-----------
2,889,611
-----------
United Kingdom--7.9%
Allied Irish Banks PLC (Banks) 246,000 $ 1,340,776
British Aerospace Ord. (Aerospace &
Defense) 110,000 1,361,335
British Airways PLC (Airlines) 184,000 1,331,429
Glaxo Wellcome PLC Spons ADR (Health
Care--Drugs) 48,000 1,356,000
Hays PLC (Professional Services) 73,000 425,078
Reed International PLC (Publishing,
Broadcasting & Cable) 85,000 1,296,118
Standard Chartered PLC (Banks) 166,000 1,412,547
Takare (Hospital Management & Services) 228,000 633,727
WPP Group (Advertising) 528,000 1,344,596
-----------
10,501,606
-----------
United States--25.4%
Arch Communications Group (Electronics)
(b) 60,000 1,440,000
Bay Networks, Inc. (Electronics) 95,000 3,906,875
Coherent, Inc. (Health & Personal Care) 45,000 1,822,500
Cytec Industries, Inc. (Chemicals) (b) 35,000 2,183,125
Elcom International, Inc. (Business &
Public Services) (b) 100,000 1,525,000
Evergreen Media Corp. Class A
(Publishing, Broadcasting &
Cable) (b) 40,000 1,280,000
Humana, Inc. (Health & Personal Care)
(b) 85,000 2,326,875
Netscape Communications Corp. (Business
& Public Services) (b) 15,000 2,085,000
Noble Affiliates, Inc. (Energy Sources) 65,000 1,941,875
Panamsat Corp. (Telecommunications) (b) 80,000 1,765,000
Pharmacopeia, Inc. (Health & Personal
Care) (b) 100,000 2,425,000
Possis Medical, Inc. (Health & Personal
Care) (b) 55,000 886,875
Premenos Technology Corp. (Business &
Public Services) (b) 90,000 2,373,750
Qualcomm, Inc. (Telecommunications) (b) 50,000 2,150,000
Reading & Bates Corp. (Energy Sources)
(b) 100,000 1,500,000
Symantec Corp. (Computer Software &
Services) (b) 85,000 1,976,250
Visx, Inc. (Health & Personal Care) (b) 55,000 2,145,000
-----------
33,733,125
-----------
TOTAL COMMON STOCKS
(Identified cost $116,074,789) 128,184,758
-----------
</TABLE>
See Notes to Financial Statements
3
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Phoenix Worldwide Opportunities Fund
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<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
-------- ---- -------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--5.3%
Commercial Paper--5.3%
Mobil Oil Corp. 5.80%, 1-2-96 A-1+ $ 600 $ 599,903
Philip Morris Companies, Inc. 5.92%, 1-5-96
(d) A-1 3,785 3,782,510
Campbell Soup Co. 5.67%, 1-8-96 A-1+ 2,595 2,592,139
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $6,974,552) 6,974,552
-----------
TOTAL INVESTMENTS--101.7%
(Identified cost $123,049,341) 135,159,310(a)
Cash and receivables, less liabilities--(1.7%) (2,222,987)
-----------
NET ASSETS--100.0% $132,936,323
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $14,646,917 and gross
depreciation of $2,536,948 for federal income tax purposes. At December
31, 1995, the aggregate cost of securities for federal income tax
purposes was $123,049,341.
(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 December 31,
1995 these securities amounted to a value of $18,640 or 0.01% of net
assets.
(d) Segregated as collateral for forward currency contracts. At December 31,
1995, this security amounted to $3,782,510 or 2.85% of net assets.
ADR--American Depository Receipt
See Notes to Financial Statements
4
<PAGE>
Phoenix Worldwide Opportunities Fund
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INDUSTRY DIVERSIFICATION
As a percentage of Total Value of Common Stocks
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Advertising 1.1%
Aerospace & Defense 1.1
Airlines 1.0
Auto & Truck Parts 2.8
Automobiles 0.6
Banks 10.5
Beverages 1.6
Building Materials & Components 0.5
Business & Public Services 5.8
Chemicals 2.9
Computer Software & Services 4.2
Conglomerates 2.1
Diversified Financial Services 0.8
Electrical Equipment 0.7
Electronics 10.1
Energy Sources 4.0
Entertainment, Leisure & Gaming 1.4
Financial Services 1.5
Health Care--Diversified 1.2
Health Care--Drugs 4.9
Health & Personal Care 8.2
Hospital Management & Services 0.5
Industrial Components 1.1
Insurance 2.5
Lodging & Restaurants 0.4
Metals--Steel 0.7
Multi-Industry 2.2
Office & Business Equipment 2.6
Oil 2.2
Professional Services 1.4
Publishing, Broadcasting & Cable 2.0
Real Estate Development 4.0
Retail 3.2
Telecommunications 3.1
Textile & Apparel 1.5
Utility--Electric 2.5
Utility--Telephone 2.6
Wholesale & Distribution 0.5
----
100.0%
====
</TABLE>
See Notes to Financial Statements
5
<PAGE>
Phoenix Worldwide Opportunities Fund
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STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Assets
Investment securities at value
(Identified cost $123,049,341) $135,159,310
Cash 80,213
Receivables
Investment securities sold 2,051,333
Fund shares sold 161,196
Dividends and interest 158,987
Tax reclaim 81,282
Net unrealized appreciation on
forward currency contracts 48,099
-----------
Total assets 137,740,420
-----------
Liabilities
Payables
Investment securities purchased 2,071,892
Fund shares repurchased 2,096,146
Closed foreign currency contracts 294,823
Investment advisory fee 84,614
Transfer agent fee 52,534
Distribution fee 30,443
Trustees' fee 6,247
Financial agent fee 3,385
Accrued expenses 164,013
-----------
Total liabilities 4,804,097
-----------
Net Assets $132,936,323
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $121,399,775
Distributions in excess of net investment income (1,255,172)
Accumulated net realized gain 632,817
Net unrealized appreciation 12,158,903
-----------
Net Assets $132,936,323
===========
Class A
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$129,096,433) 13,935,337
Net asset value per share $9.26
Offering price per share
$9.26/(1-4.75%) $9.72
Class B
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$3,839,890) 419,287
Net asset value and offering price per share $9.16
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Investment income
Dividends (net of $79,273 foreign withholding
tax) $ 463,011
Interest 276,973
---------
Total investment income 739,984
---------
Expenses
Investment advisory fee 507,043
Distribution fee--Class A 164,950
Distribution fee--Class B 16,258
Financial agent fee 20,282
Transfer agent 206,903
Custodian 111,783
Registration 23,677
Printing 20,271
Professional 17,465
Trustees 17,131
Miscellaneous 18,610
---------
Total expenses 1,124,373
---------
Net investment loss (384,389)
---------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 12,384,048
Net realized loss on foreign currency
transactions (32,746)
Net unrealized depreciation on investments (687,618)
Net unrealized appreciation on foreign currency
transactions 515,861
---------
Net gain on investments 12,179,545
---------
Net increase in net assets resulting from
operations $11,795,156
=========
</TABLE>
See Notes to Financial Statements
6
<PAGE>
Phoenix Worldwide Opportunities Fund
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STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year
December 31, 1995 Ended
(Unaudited) June 30, 1995
------------------ -------------
<S> <C> <C>
From Operations
Net investment income (loss) $ (384,389) $ 193,728
Net realized gain (loss) 12,351,302 (536,147)
Net unrealized appreciation (depreciation) (171,757) 7,441,668
----------------- -----------
Increase in net assets resulting from operations 11,795,156 7,099,249
----------------- -----------
From Distributions to Shareholders
Net realized gains--Class A (7,904,984) (18,002,670)
Net realized gains--Class B (219,984) (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 (8,124,968) (22,570,853)
----------------- -----------
From Share Transactions
Class A
Proceeds from sales of shares (2,022,268 and 5,285,785 shares,
respectively) 19,334,042 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 (2,836,726 and 5,169,653 shares,
respectively) (27,202,842) (48,268,641)
----------------- -----------
Total (1,019,050) 22,999,784
----------------- -----------
Class B
Proceeds from sales of shares (126,647 and 348,307 shares,
respectively) 1,202,822 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 (44,803 and 56,061 shares, respectively) (426,385) (495,588)
----------------- -----------
Total 954,874 3,095,075
----------------- -----------
Increase (decrease) in net assets from share transactions (64,176) 26,094,859
----------------- -----------
Net increase in net assets 3,606,012 10,623,255
Net Assets
Beginning of period 129,330,311 118,707,056
----------------- -----------
End of period (including distributions in excess of net investment
income of ($1,255,172) and ($870,783), respectively) $132,936,323 $129,330,311
================= ===========
</TABLE>
See Notes to Financial Statements
7
<PAGE>
Phoenix Worldwide Opportunities Fund
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FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------------------------------
Six Months
Ended
12/31/95 Year Ended June 30,
(Unaudited) 1995 1994 1993 1992 1991
--------------- ----------------------------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $ 9.04 $ 10.17 $ 8.00 $ 7.18 $ 6.82 $ 7.56
Income from investment
operations:
Net investment income
(loss) (0.03)((3)) 0.01((3)) 0.01 0.03 0.01((2)) 0.23((1))
Net realized and
unrealized gain (loss) 0.85 0.56 2.19 0.79 0.36 (0.67)
-------------- -------------- -------- -------- -------------- --------------
Total from investment
operations 0.82 0.57 2.20 0.82 0.37 (0.44)
-------------- -------------- -------- -------- -------------- --------------
Less distributions:
Dividends from net
investment income -- -- (0.03) -- (0.01) (0.30)
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) (0.30)
-------------- -------------- -------- -------- -------------- --------------
Change in net asset value 0.22 (1.13) 2.17 0.82 0.36 (0.74)
-------------- -------------- -------- -------- -------------- --------------
Net asset value, end of
period $ 9.26 $ 9.04 $ 10.17 $ 8.00 $ 7.18 $ 6.82
============== ============== ======== ======== ============== ==============
Total return((4)) 9.35%((5)) 6.53% 27.46% 11.42% 5.43% -5.27%
Ratios/supplemental data:
Net assets, end of period
(thousands) $ 129,096 $126,481 $118,707 $88,870 $63,354 $59,874
Ratio to average net
assets of:
Operating expenses 1.65%((6)) 1.80% 1.50% 1.88% 2.15%((2)) 1.75%((1))
Net investment income
(loss) (0.55)%((6)) 0.16% 0.09% 0.61% 0.16% 3.46%
Portfolio turnover 141%((5)) 277% 259% 95% 51% 76%
</TABLE>
<TABLE>
<CAPTION>
Class B
-----------------------------------
Six Months From
Ended Inception
12/31/95 7/15/94 to
(Unaudited) 6/30/95
----------------- -----------------
<S> <C> <C>
Net asset value, beginning
of period $ 8.98 $ 10.40
Income from investment
operations:
Net investment income
(loss) (0.06)((3)) (0.02)((3))
Net realized and
unrealized gain (loss) 0.84 0.30
--------------- ---------------
Total from investment
operations 0.78 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 0.18 (1.42)
--------------- ---------------
Net asset value, end of
period $ 9.16 $ 8.98
=============== ===============
Total return((4)) 8.86%((5)) 3.54%((5))
Ratios/supplemental data:
Net assets, end of period
(thousands) $ 3,840 $ 2,849
Ratio to average net
assets of:
Operating expenses 2.41%((6)) 2.61%((6))
Net investment income
(loss) (1.30)%((6)) (0.33)%((6))
Portfolio turnover 141%((5)) 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 average shares outstanding.
((4)) Maximum sales load is not reflected in the total return calculation.
((5)) Not annualized
((6)) Annualized
See Notes to Financial Statements
8
<PAGE>
PHOENIX WORLDWIDE OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 1995 (Unaudited)
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 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 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-
9
<PAGE>
PHOENIX WORLDWIDE OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 1995 (Unaudited) (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, less than
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, less than wholly-owned subsidiary of PHL, has
advised the Fund that it retained net selling commissions of $11,630 for
Class A shares and deferred sales charges of $5,041 for Class B shares for
the six months ended December 31, 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 six months ended December 31, 1995, $63,072 was retained by
the Distributor and $118,136 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
six months ended December 31, 1995, transfer agent fees were $206,903 of
which PEPCO retained $70,739 which is net of the fees paid to State Street.
At December 31, 1995, PHL and affiliates held 158 Class A shares and 1
Class B share of the Fund with a combined value of $1,473.
3. PURCHASE AND SALE OF SECURITIES
Portfolio purchases and sales of investments, excluding short-term
securities, for the six months ended December 31, 1995, aggregated
$171,590,543 and $177,147,395, respectively. There were no purchases or sales
of long-term U.S. Government securities.
4. FORWARD CURRENCY CONTRACTS
As of December 31, 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>
SEK 26,800,000 USD 4,007,057 2/1/96 $4,043,940 $(36,883)
YEN 396,000,000 USD 3,930,521 3/1/96 3,876,206 54,315
YEN 1,014,000,000 USD 10,000,000 4/1/96 9,969,333 30,667
-----------
$ 48,099
===========
</TABLE>
SEK = Swedish Krona
USD = U.S. Dollar
YEN = Japanese Yen
As of December 31, 1995, the Worldwide Opportunities Fund had $3,782,510
in short-term securities segregated as collateral to cover the open forward
currency contracts.
5. 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.
10
<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
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
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
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
Phoenix Funds
Phoenix Worldwide Opportunities Fund
Semiannual Report
December 31, 1995
Phoenix Worldwide Opportunities Fund
P.O. Box 2200
Enfield, CT 06083-2200
[Phoenix Duff & Phelps logo] Phoenix Duff & Phelps
Bulk Rate Mail
U.S. Postage
PAID
Springfield, MA
Permit No. 44
PDP 682 (2/96)
<PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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