December 31, 1996
PHOENIX
FUNDS
SEMIANNUAL REPORT
Phoenix Worldwide
Opportunities Fund
[LOGOTYPE] PHOENIX
DUFF & PHELPS
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Phoenix Worldwide Opportunities Fund
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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 around the world posted excellent results over this
latest reporting cycle. In the United States, moderate economic growth,
benign inflation, solid corporate profits and record mutual fund inflows
pushed stocks to record highs. As measured by the Standard & Poor's 500 Stock
Index, the U.S. equity market returned an impressive 11.80% for the six
months ended December 31, 1996. During this period, large company stocks
significantly outperformed their small-cap counterparts.
In addition to the continued strong performance in the U.S., Europe also
stood out. Almost all European markets benefited from corporate
restructuring, falling interest rates and the likelihood of more
shareholder-friendly policies. Additionally, countries such as Germany,
Sweden, Finland and the United Kingdom have been further bolstered by share
buybacks as well as merger and acquisition activity.
Despite a strong start in the beginning of the year, Japan's performance
over the last six months has been a major disappointment. Poor corporate
earnings growth and a weak domestic economy led to a serious deterioration in
investor sentiment. During this same period, results from other Asian
countries were mixed. Equity markets in Hong Kong, Malaysia and Indonesia
continued to post strong gains, while performance in Thailand, Korea and
India was dismal.
Aided by an improved economic outlook, lower interest rates and strong
capital inflows, most Latin American markets moved higher during the calendar
year, earning double-digit returns. Although this region produced strong
results during 1996, most of these gains occurred during the first half of
the year. Over this latest six-month reporting period, Venezuela and Brazil
were the best performing countries in Latin America, while Chile and Peru
were among the laggards.
Portfolio Review
For the six months ended December 31, 1996, the Fund's Class A shares
provided a total return of 3.59% and Class B shares returned 3.06%. As
measured by the Morgan Stanley Capital International World Index, global
equity markets gained 6.21% for the same period. All of these figures assume
reinvestment of any distributions, but exclude the effect of sales charges.
During this reporting cycle, Fund performance was held back largely due to
its underweighted position in the strongly performing U.S. equity market.
Positive contributors included the portfolio's overweighted position in
Europe as well as our strong stock selection in this region. Additionally,
our decision to reduce the portfolio's exposure to Japan and our use of
currency hedges also boosted performance. More recently, the Fund benefited
from its overweighted position in certain Asian markets, particularly Hong
Kong and Taiwan.
Outlook
Moving into 1997, we expect earnings growth to decelerate moderately in the
United States, which may limit the upside potential of this market. On the
positive side, a stable interest rate environment and strong mutual fund
inflows may continue to support equity valuations in this country. It is our
intention to remain moderately underweighted in the U.S. and focus on high-
quality, large-cap growth stocks within the technology, energy and financial
sectors.
After a dismal first half in 1996, European economic growth is beginning to
improve. We expect 1997 GDP to grow at about 2.5%, but it is unlikely that
demand will be strong enough to exert much upward pressure on interest rates
until late in the year. Except for the United Kingdom and a few smaller
European countries, unemployment is showing no signs of declining. Moreover,
the pressure on governments to cut spending will continue to be a drag on
growth going forward. This, coupled with both public and private sector
restructuring, means it will be even more important to focus on those
companies that are making the difficult choices that will deliver value to
their shareholders.
In Japan, the outlook for 1997 is also modest. It appears that most globally
active companies in this country have already done as much restructuring as
possible without a radical philosophical change towards "U.S. style
restructuring." This would entail layoffs and unfriendly takeovers, supported
by government deregulation and tax-reform, and it is doubtful that this type
of change will occur in the near term. On the positive side, the potential
for improved economic growth in the rest of the world could tighten overall
capacity and allow even the weakest Japanese companies to improve their
profit margins. We will continue to monitor Japan's economy for signs of
improvement, but currently see better prospects elsewhere.
In Asia, we remain very positive on Hong Kong's near-term outlook. As a
country, we believe that Hong Kong will remain self-confident immediately
prior to and after the handover to China on June 30, 1997. We also expect
Taiwan and Malaysia to continue to do well. However, our outlook for
Singapore is rather negative due to slowing economic growth and a lack of
choice in this market. We are also concerned about the prospects for India
and Thailand, given their weak governments and the severe structural changes
needed to turn around both these economies. Overall, we expect to remain
overweighted in Asia (excluding Japan) during 1997.
1
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Phoenix Worldwide Opportunities Fund
In Latin America, Mexico and Argentina are seeing economic reacceleration
after the severe recession of 1995 and early 1996. While this is clearly good
news, flawed economic reform processes still remain and are now causing
problems in Brazil. The Fund intends to have exposure to this region, but
potential currency depreciation may limit prospective gains. Since other
emerging countries may provide better opportunities, we will look for new
markets which can provide above-average economic and earnings growth.
Overall, we expect foreign markets to continue to perform well in 1997 due
to low interest rates, improved economic growth and corporate restructuring
efforts. If world economic growth begins to accelerate dramatically, we will
increase the Fund's exposure to economically sensitive stocks. At present,
however, we continue to focus on themes that should provide secular growth
and hence, strong performance. Moving forward, we believe the Fund is well
positioned for the coming new year.
INVESTMENTS AT DECEMBER 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
--------- ----------------
<S> <C> <C>
COMMON STOCKS--91.9%
Belgium--1.0%
Credit Communal Holding/Dexia (Banks) (b) 16,000 $ 1,458,232
------------
Brazil--1.1%
Telebras Sponsored ADR (Utility--Telephone) 22,600 1,728,900
------------
France--5.7%
AXA SA (Insurance) 22,700 1,440,937
BIC SA (Miscellaneous) 12,000 1,795,834
Cardif SA (Insurance) 10,700 1,471,618
Louis Dreyfus Citrus (Food) (b) 28,000 915,613
Rexel SA (Wholesale & Distribution) 2,550 772,549
Salomon SA (Entertainment, Leisure
& Gaming) 16,000 1,369,573
Sommer-Allibert (Auto & Truck Parts) 25,400 757,305
------------
8,523,429
------------
Germany--3.9%
Adidas AG (Textile & Apparel) 17,650 1,523,230
BASF AG (Chemical) 51,000 1,961,768
SGL Carbon AG (Chemical) 11,000 1,384,725
VEBA AG (Utility--Electric) 18,200 1,051,067
------------
5,920,790
------------
Hong Kong--11.4%
Cheung Kong Holdings Ltd. (Real Estate) 447,000 3,973,064
Dao Heng Bank Group Ltd. (Banks) 190,000 911,324
Great Eagle Holdings Ltd. (Real Estate) 159,000 655,742
Guoco Group Ltd. (Diversified Financial
Services) 242,000 1,354,717
Henderson China Holding Ltd. (Real Estate) 768 1,747
Henderson Land Development Co. Ltd. (Real
Estate) 444,000 4,477,369
Hutchison Whampoa Ltd. (Conglomerates) 187,000 1,468,700
Hysan Development Co. Ltd. (Real Estate) 314,000 1,250,333
New World Development Co. Ltd. (Real Estate) 251,500 1,698,907
Sun Hung Kai Properties Ltd. (Real Estate) 105,000 1,286,216
------------
17,078,119
------------
Indonesia--1.2%
PT Semen Gresik (Building & Materials) 467,500 1,503,915
Wicaksana Overseas International (Wholesale
& Distribution) 316,000 361,143
------------
1,865,058
------------
Israel--2.0%
Teva Pharmaceutical Industries Ltd.
Sponsored ADR (Health Care--Drugs) 60,000 3,015,000
------------
Italy--3.8%
Fila Holding SPA ADR (Textile & Apparel) 36,300 2,109,938
Gucci Group NV-NY (Textile & Apparel) 29,800 1,903,475
Stet-Societa Finanziaria Telefonica SPA
(Utility--Telephone) 363,000 1,647,287
------------
5,660,700
------------
Japan--5.9%
Canon, Inc. (Office & Business Equipment) 40,000 882,226
Circle K Japan Co. Ltd. (Retail--Food) 21,000 904,627
Honda Motor Co. Ltd. (Autos & Trucks) 55,000 1,568,450
Keyence Corp. Ltd. (Electronics) 6,000 739,209
Nintendo Corp. Ltd. (Entertainment, Leisure
& Gaming) 16,000 1,142,759
Nippon Television Network
(Publishing, Broadcasting, Printing & Cable) 3,000 904,627
TDK Corp. (Electronics) 18,000 1,170,845
Toyota Motor Corp. (Autos & Trucks) 31,000 889,377
Xebio Co. Ltd. (Retail) 19,000 564,745
------------
8,766,865
------------
See Notes to Financial Statements
2
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Phoenix Worldwide Opportunities Fund
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SHARES VALUE
--------- ----------------
Malaysia--2.5%
Commerce Asset Holding Berhad (Banks) 168,000 $1,263,908
Renong Berhad (Engineering & Construction) 690,000 1,223,995
United Engineers Ltd. (Building & Materials) 139,000 1,254,880
------------
3,742,783
------------
Mexico--2.8%
Apasco SA de CV (Building & Materials) 212,000 1,454,268
Grupo Carso (Conglomerates) 324,000 1,708,079
Grupo Industrial Maseca SA de CV (Food) 800,000 1,014,228
------------
4,176,575
------------
Netherlands--3.6%
Ahrend Groep NV (Office & Business
Equipment) 28,347 1,578,202
Akzo Nobel (Chemical) 7,800 1,064,231
IHC Caland (Oil Service & Equipment) 37,000 2,111,291
Samas Groep-CVA (Office & Business
Equipment) 14,544 622,221
------------
5,375,945
------------
Norway--0.8%
Storebrand ASA (Insurance) (b) 218,000 1,263,214
------------
Peru--0.8%
Telefonica Del Peru SA (Utility--Telephone) 617,014 1,154,674
------------
Portugal--2.5%
Cimpor-Cimentos de Portugal SA (Building &
Materials) 51,000 1,096,541
Portugal Telecom SA (Utility--Telephone) 50,400 1,434,899
Telecel-Comunicacoes Pessoais
(Utility--Telephone) 18,500 1,179,710
------------
3,711,150
------------
Spain--2.0%
Empresa Nacional de Electricidad SA
(Utility--Electric) 16,400 1,164,989
Telefonica De Espana Ord.
(Utility--Telephone) 76,000 1,761,599
------------
2,926,588
------------
Sweden--1.8%
Frontec AB (Computer Software & Services)
(b) 88,000 1,520,797
Nordbanken AB (Banks) 37,000 1,118,995
------------
2,639,792
------------
Switzerland--3.8%
Ares-Serono Group B (Health Care--Drugs) 1,400 1,331,496
CS Holding AG Registered (Banks) 13,200 1,351,754
Novartis AG Registered (Health Care--Drugs) 1,600 1,826,767
Swiss Reinsurance Registered (Insurance) 1,150 1,223,915
------------
5,733,932
------------
Taiwan--0.0%
China Bills Finance Corp. (Commercial
Finance) (b) 5,861 53,931
------------
United Kingdom--11.4%
Barclays PLC (Diversified Financial
Services) 70,000 1,198,614
British Aerospace PLC (Aerospace & Defense) 109,700 2,403,149
Carlton Communications PLC (Publishing,
Broadcasting, Printing & Cable) 196,000 1,725,860
Compass Group PLC (Lodging & Restaurants) 147,000 1,553,525
Granada Group PLC (Entertainment, Leisure &
Gaming) 87,000 1,282,740
Lloyds TSB Group PLC (Diversified Financial
Services) 172,000 1,267,260
Next PLC (Retail) 148,000 1,437,447
Rolls-Royce PLC (Aerospace & Defense) 290,000 1,278,025
Siebe PLC (Electrical Equipment) 108,000 1,999,931
WPP Group PLC (Advertising) 658,000 2,860,380
------------
17,006,931
------------
United States--23.9%
America Online, Inc. (Computer Software &
Services) (b) 60,000 1,995,000
Applied Materials, Inc. (Electronics) (b) 70,000 2,515,625
BA Merchant Services, Inc. (Computer
Software & Services) (b) 183,500 3,280,063
Chesapeake Energy Corp. (Oil) (b) 30,000 1,668,750
Cisco Systems, Inc. (Telecommunications
Equipment) (b) 24,000 1,527,000
ENSCO International, Inc. (Oil Service &
Equipment) (b) 20,000 970,000
First USA, Inc. (Diversified Financial
Services) 45,000 1,558,125
International Business Machines Corp.
(Office & Business Equipment) 14,000 2,114,000
Latin American Discovery Fund, Inc.
(Multi-Industry) 77,000 962,500
Microsoft Corp. (Computer Software &
Services) (b) 32,000 2,644,000
Netscape Communications Corp. (Computer
Software & Services) (b) 36,000 2,047,500
Neuromedical Systems, Inc. (Medical Products
& Supplies) (b) 180,000 2,385,000
Reading & Bates Corp. (Oil Service &
Equipment) (b) 34,000 901,000
Seagate Technology, Inc. (Office & Business
Equipment) (b) 50,000 1,975,000
Smith International, Inc. (Oil Service &
Equipment) (b) 35,000 1,570,625
Teradyne, Inc. (Electronics) (b) 100,000 2,437,500
3Com Corp. (Electronics) (b) 30,000 2,201,250
Waters Corp. (Electronics) (b) 60,000 1,822,500
West Teleservices Corp. (Telecommunications
Equipment) (b) 50,000 1,137,500
------------
35,712,938
------------
TOTAL COMMON STOCKS
(Identified cost $120,528,429) 137,515,546
------------
See Notes to Financial Statements
</TABLE>
3
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<TABLE>
<CAPTION>
Phoenix Worldwide Opportunities Fund
- --------------------------------------------------------------------------------
SHARES VALUE
------- -----------
<S> <C> <C>
PREFERRED STOCKS--1.2%
Germany--0.6%
Porsche AG (Autos & Trucks) 1,100 $ 970,735
-----------
United Kingdom--0.6%
Egypt Investment Co. (Multi-Industry) (b) 73,000 912,500
-----------
TOTAL PREFERRED STOCKS
(Identified cost $1,510,729) 1,883,235
-----------
WARRANTS--1.4%
Intel Corp. Warrants (Electronics) (b) 22,000 2,029,500
-----------
TOTAL WARRANTS
(Identified cost $1,870,001) 2,029,500
-----------
TOTAL LONG-TERM INVESTMENTS--94.5%
(Identified cost $123,909,159) 141,428,281
-----------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- --------- ---------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--4.5%
Commercial Paper--4.5%
Ameritech Capital
Funding Corp. 6.25%,
1-2-97 A-1+ $ 1,225 $ 1,224,788
Abbott Laboratories
6.50%, 1-3-97 A-1+ 595 594,785
Corporate Asset Funding
Co., Inc. 6%, 1-6-97 A-1+ 1,430 1,428,808
Coca-Cola Co. 5.90%,
1-9-97 A-1+ 260 259,659
Preferred Receivables
Funding Corp. 5.43%,
1-9-97 A-1 890 888,926
Cargill, Inc. 5.45%,
1-17-97 (c) A-1+ 2,000 1,995,156
Receivables Capital
Corp. 5.65%,
1-17-97 A-1+ 330 329,171
------------
6,721,293
------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $6,721,293) 6,721,293
-----------
TOTAL INVESTMENTS--99.0%
(Identified cost $130,630,452) 148,149,574(a)
Cash and receivables, less
liabilities--1.0% 1,466,888
-----------
NET ASSETS--100.0% $149,616,462
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $20,300,485 and gross
depreciation of $2,781,363 for federal income tax purposes. At
December 31, 1996, the aggregate cost of securities for federal income
tax purposes was $130,630,452.
(b) Non-income producing.
(c) Segregated as collateral for forward currency contracts.
See Notes to Financial Statements
4
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Phoenix Worldwide Opportunities Fund
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INDUSTRY DIVERSIFICATION
As a percentage of Total Value of Total Long-Term Investments
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Advertising 2.0%
Aerospace & Defense 2.6
Auto & Truck Parts 0.5
Autos & Trucks 2.4
Banks 4.3
Building & Materials 3.8
Chemical 3.1
Commercial Finance 0.0
Computer Software & Services 8.1
Conglomerates 2.3
Diversified Financial Services 3.8
Electrical Equipment 1.4
Electronics 9.1
Engineering & Construction 0.9
Entertainment, Leisure & Gaming 2.7
Food 1.4
Health Care--Drugs 4.4
Insurance 3.8
Lodging & Restaurants 1.1
Medical Products & Supplies 1.7
Miscellaneous 1.3
Multi-Industry 1.3
Office & Business Equipment 5.1
Oil 1.2
Oil Service & Equipment 3.9
Publishing, Broadcasting, Printing & Cable 1.9
Real Estate 9.4
Retail 1.4
Retail--Food 0.6
Telecommunications Equipment 1.9
Textile & Apparel 3.9
Utility--Electric 1.6
Utility--Telephone 6.3
Wholesale & Distribution 0.8
-----
100.0%
=====
See Notes to Financial Statements
</TABLE>
5
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Phoenix Worldwide Opportunities Fund
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STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
(Unaudited)
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $130,630,452) $148,149,574
Foreign currency at value
(Identified cost $475,764) 473,604
Cash 2,939
Receivables
Investment securities sold 190,815
Fund shares sold 312,867
Dividends and interest 154,396
Tax reclaim 43,564
Net unrealized appreciation on
forward currency contracts 726,379
------------
Total assets 150,054,138
------------
Liabilities
Payables
Fund shares repurchased 86,225
Investment advisory fee 93,742
Transfer agent fee 92,992
Distribution fee 35,090
Trustees' fee 6,433
Financial agent fee 3,750
Accrued expenses 119,444
------------
Total liabilities 437,676
------------
Net Assets $149,616,462
============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $129,236,570
Undistributed net investment loss (414,249)
Accumulated net realized gain 2,550,702
Net unrealized appreciation 18,243,439
------------
Net Assets $149,616,462
============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $143,216,646) 14,590,048
Net asset value per share $9.82
Offering price per share
$9.82/(1-4.75%) $10.31
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $6,399,816) 662,939
Net asset value and offering price per share $9.65
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1996
(Unaudited)
<TABLE>
<S> <C>
Investment Income
Dividends (net of $19,317 foreign withholding tax) $716,246
Interest 521,222
----------
Total investment income 1,237,468
----------
Expenses
Investment advisory fee 563,167
Distribution fee--Class A 180,476
Distribution fee--Class B 28,987
Financial agent fee 22,527
Transfer agent 175,050
Custodian 84,000
Printing 29,750
Professional 24,700
Registration 20,500
Trustees 9,354
Miscellaneous 10,650
----------
Total expenses 1,149,161
----------
Net investment income 88,307
----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 3,894,165
Net realized gain on foreign currency transactions 155,594
Net change in unrealized appreciation (depreciation) on
investments 1,008,364
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions 234,653
----------
Net gain on investments 5,292,776
----------
Net increase in net assets resulting from operations $5,381,083
==========
See Notes to Financial Statements
</TABLE>
6
<PAGE>
Phoenix Worldwide Opportunities Fund
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year
December 31, 1996 Ended
(Unaudited) June 30, 1996
----------------- --------------
<S> <C> <C>
From Operations
Net investment income (loss) $ 88,307 $ (291,385)
Net realized gain 4,049,759 22,536,010
Net change in unrealized appreciation (depreciation) 1,243,017 4,669,762
------------ ------------
Increase in net assets resulting from operations 5,381,083 26,914,387
------------ ------------
From Distributions to Shareholders
Net investment income--Class A (584,205) --
Net investment income--Class B (3,568) --
Net realized gains--Class A (10,604,912) (7,904,822)
Net realized gains--Class B (464,410) (220,021)
------------ ------------
Decrease in net assets from distributions to shareholders (11,657,095) (8,124,843)
------------ ------------
From Share Transactions
Class A
Proceeds from sales of shares (6,472,814 and 9,725,785 shares,
respectively) 65,413,250 94,334,086
Net asset value of shares issued from reinvestment of
distributions (1,017,922 and 764,481
shares, respectively) 9,812,763 6,849,750
Cost of shares repurchased (7,090,388 and 10,285,880 shares,
respectively) (72,061,868) (99,875,851)
------------ ------------
Total 3,164,145 1,307,985
------------ ------------
Class B
Proceeds from sales of shares (116,478 and 318,603 shares,
respectively) 1,149,649 3,048,479
Net asset value of shares issued from reinvestment of
distributions (40,165 and 20,140 shares, respectively) 381,165 178,437
Cost of shares repurchased (56,781 and 92,969 shares,
respectively) (563,517) (893,724)
------------ ------------
Total 967,297 2,333,192
------------ ------------
Increase in net assets from share transactions 4,131,442 3,641,177
------------ ------------
Net increase (decrease) in net assets (2,144,570) 22,430,721
Net Assets
Beginning of period 151,761,032 129,330,311
------------ ------------
End of period (including undistributed net investment income
(loss) of ($414,249) and $85,217, respectively) $149,616,462 $151,761,032
============ ============
See Notes to Financial Statements
</TABLE>
7
<PAGE>
Phoenix Worldwide Opportunities Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
----------------------------------------------------------------------------
Six Months
Ended
12/31/96 Year Ended June 30,
(Unaudited) 1996 1995 1994 1993 1992
-------------- ------------ ------------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.29 $ 9.04 $10.17 $ 8.00 $ 7.18 $ 6.82
Income from investment operations:
Net investment income (loss) 0.01(1) (0.02)(1) 0.01(1) 0.01 0.03 0.01(5)
Net realized and unrealized gain 0.34 1.87 0.56 2.19 0.79 0.36
-------- -------- -------- -------- -------- --------
Total from investment operations 0.35 1.85 0.57 2.20 0.82 0.37
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income (0.04) -- -- (0.03) -- (0.01)
Dividends from net realized gains (0.78) (0.60) (1.37) -- -- --
In excess of net realized gains -- -- (0.33) -- -- --
-------- -------- -------- -------- -------- --------
Total distributions (0.82) (0.60) (1.70) (0.03) -- (0.01)
-------- -------- -------- -------- -------- --------
Change in net asset value (0.47) 1.25 (1.13) 2.17 0.82 0.36
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 9.82 $10.29 $ 9.04 $10.17 $ 8.00 $ 7.18
======== ======== ======== ======== ======== ========
Total return(2) 3.59%(3) 21.39% 6.53% 27.46% 11.42% 5.43%
Ratios/supplemental data:
Net assets, end of period (thousands) $143,217 $146,052 $126,481 $118,707 $88,870 $63,354
Ratio to average net assets of:
Operating expenses 1.50%(4) 1.60% 1.80% 1.50% 1.88% 2.15%(5)
Net investment income (loss) 0.15%(4) (0.19)% 0.16% 0.09% 0.61% 0.16%
Portfolio turnover 102%(3) 245% 277% 259% 95% 51%
Average commission rate paid(6) $0.0215 N/A N/A N/A N/A N/A
Class B
--------------------------------------
Six From
Months Inception
Ended Year 7/15/94
12/31/96 Ended to
(Unaudited) 6/30/96 6/30/95
-------- -------- --------
Net asset value, beginning of period $10.14 $ 8.98 $10.40
Income from investment operations:
Net investment income (loss) (0.03)(1) (0.08)(1) (0.02)(1)
Net realized and unrealized gain 0.33 1.84 0.30
-------- -------- --------
Total from investment operations 0.30 1.76 0.28
-------- -------- --------
Less distributions:
Dividends from net investment income (0.01) -- --
Dividends from net realized gains (0.78) (0.60) (1.37)
In excess of net realized gains -- -- (0.33)
-------- -------- --------
Total distributions (0.79) (0.60) (1.70)
-------- -------- --------
Change in net asset value (0.49) 1.16 (1.42)
-------- -------- --------
Net asset value, end of period $ 9.65 $10.14 $ 8.98
======== ======== ========
Total return(2) 3.06%(3) 20.50% 3.54%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $6,400 $5,709 $2,849
Ratio to average net assets of:
Operating expenses 2.25% (4) 2.34% 2.61%(4)
Net investment income (loss) (0.60%)(4) (0.86)% (0.33)%(4)
Portfolio turnover 102% (3) 245% 277%
Average commission rate paid(6) $0.0215 N/A N/A
</TABLE>
(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.
(6) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for securities
trades on which commissions are charged. This rate generally does not
reflect mark-ups, or spreads on shares traded on a principal basis.
See Notes to Financial Statements
8
<PAGE>
PHOENIX WORLDWIDE OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 1996 (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. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets, liabilities, revenues and
expenses. Actual results could differ from those estimates.
A. Security valuation:
Equity securities are valued at the last sale price, or if there had been no
sale of the security on that day, at the last bid price. Short-term
investments having a remaining maturity of 60 days or less are valued at
amortized cost which approximates market. All other securities and assets are
valued at their fair value as determined in good faith by or under the
direction of the Trustees.
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- 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
9
<PAGE>
PHOENIX WORLDWIDE OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 1996 (Unaudited) (Continued)
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 $5,086 for Class A shares and
deferred sales charges of $14,397 for Class B shares for the six months ended
December 31, 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
six months ended December 31, 1996, approximately $75,601 was retained by the
Distributor and $133,862 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, 1996, transfer agent fees were $175,050 of
which PEPCO retained $69,305 which is net of the fees paid to State Street.
At December 31, 1996, PHL and affiliates held 171 Class A shares and 1 Class
B share of the Fund with a combined value of $1,693.
3. PURCHASE AND SALE OF SECURITIES
Portfolio purchases and sales of investments, excluding short-term
securities, for the six months ended December 31, 1996, aggregated
$135,387,257 and $132,657,721, respectively. There were no purchases or sales
of long-term U.S. Government securities.
4. FORWARD CURRENCY CONTRACTS
As of December 31, 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 6,720,000 USD 4,411,186 1/6/97 $4,330,173 $81,013
SF 5,630,000 USD 4,519,547 1/6/97 4,183,075 336,472
YEN 872,000,000 USD 7,891,760 1/6/97 7,543,672 348,088
USD 1,518,515 YEN 171,000,000 1/6/97 1,479,321 (39,194)
--------
$726,379
========
</TABLE>
DM = German Deutsche Mark
SF = Swiss Franc
YEN = Japanese Yen
USD = U.S. Dollar
5. CREDIT RISK
In countries with limited or developing markets, investments may present
greater risks than in more developed markets and the prices of such
investments may be volatile. The consequences of political, social or
economic changes in these markets may have disruptive effects on the market
prices of these investments and the income they generate, as well as a fund's
ability to repatriate such amounts.
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
Michael E. Haylon, Executive Vice President
David R. Pepin, Executive Vice President
William J. Newman, Senior Vice President
Jeanne H. Dorey, Vice President
William E. Keen III, Vice President
David Lui, 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
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
Phoenix Worldwide Opportunities Fund | BULK RATE MAIL |
P.O. Box 2200 | U.S. POSTAGE |
Enfield, CT 06083-2200 | PAID |
| SPRINGFIELD, MA |
| PERMIT NO. 444 |
[LOGOTYPE] PHOENIX
DUFF & PHELPS
PDP 682 (2/97)
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