[FRONT COVER]
December 31, 1997
PHOENIX
FUNDS
SEMIANNUAL REPORT
o PHOENIX WORLDWIDE
OPPORTUNITIES FUND
[LOGO] PHOENIX
DUFF & PHELPS
<PAGE>
Mutual funds are not insured by the FDIC; are not deposits or other
obligations of a bank and are not guaranteed by a bank; and are
subject to investment risks, including possible loss of the principal
invested.
<PAGE>
Chairman's Message
Dear Fellow Shareholder,
We're pleased to provide this semiannual report for Phoenix Worldwide
Opportunities Fund for the six months ended December 31, 1997. This has been a
remarkable time for the financial markets, particularly equities. For the
latest six months, the S&P 500 Stock Index returned over 10%, but market
volatility has been high.
During market extremes, your most important asset may be your financial
adviser. Managing your investments in changing markets can be challenging, and
your financial adviser knows some time-tested strategies that can help.
Rebalancing your portfolio is one strategy to reduce risk. As the stock
market has moved higher, your equity investments may have increased in value so
that now they represent a higher percentage of your total portfolio than you
originally intended. Your financial adviser may recommend a shift in asset
allocation to bring your portfolio back in line with your investment goals and
risk tolerance.
Diversifying your portfolio can smooth the effects of volatility. Spreading
your investments across a broad mix of securities reduces risk. You can also
diversify by investment style. For example, you may choose to balance an
investment in growth stocks with a fund that focuses on value-oriented stocks.
Dollar-cost averaging takes advantage of market fluctuations.
In a systematic savings plan, you'll buy fewer shares when prices are high and
more when prices fall. Periodic investments don't ensure a profit, however, and
you should consider your ability to continually make purchases.
On behalf of Phoenix Funds, I want to thank you for investing with us and
assure you that we will continue to work hard to help you meet your investment
needs.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
President and Chairman
Phoenix Funds
<PAGE>
PHOENIX WORLDWIDE OPPORTUNITIES FUND
INVESTOR PROFILE
Phoenix Worldwide Opportunities Fund is designed for investors seeking
long-term capital appreciation and broad equity global diversification.
Investors should note that foreign investments pose added risks, such as
currency fluctuations, less public information and political and economic
uncertainty.
INVESTMENT ADVISER'S REPORT
For the six months ended December 31, 1997, Phoenix Worldwide
Opportunities Class A shares returned 4.21% and Class B shares earned 3.92%
compared with a negative 0.02% return for the Lipper Global Fund Group average
for 194 funds and 0.33% for the MSCI World Index. Within the index, there was
great divergence between regions with Europe and the U.S. performing best. The
U.S. currency also strengthened over the period. The MSCI World Index, when
measured in local currencies, gained 3.55%. All returns are in U.S. dollars,
assume reinvestment of dividends and exclude the effect of sales charges. MSCI
total return figures are net of foreign withholding taxes.
The Fund benefited from good stock selection in the second half of the
year in the United States, its overweight position in Europe and Latin America,
and little exposure to Japan and the rest of Asia. Performance was hampered
somewhat by our underweight position in the U.S. market.
In the United States, the S&P 500 index rose 10.66% on a total return
basis during the final six months of 1997. The strong stock market performance
was fueled by solid earnings growth, declining long-term interest rates, and a
flight to quality into the U.S. markets. The MSCI Europe Index rose 8.35%
(10.68% local). In the region, markets have responded well to slowly improving
economic growth, falling interest rates, the prospects of convergence in
interest rates ahead of the single currency, cross-border merger and
acquisition activity (also ahead of the single market), and more widespread
corporate awareness of shareholder value. The MSCI Pacific (free) Index fell
30.79%, and ex-Japan it fell 33.34% while the EMF Far East Index declined
55.51%. A general loss of confidence in the financial systems of the region and
the base on which economic growth had been built was cast into doubt.
OUTLOOK
In the United States, we expect continued moderate economic growth with
declining long-term interest rates. We expect continued economic recovery in
Europe, coupled with relatively low interest rates, to be positive for stock
markets. The longer term trends of growth in the service sector, the
application of technology, and growth in financial services will continue to be
well represented in the Fund. In Latin America, privatization and structural
reform, as well as a decline in interest rates as the Asian situation
stabilizes should benefit the region. In Japan, the government has announced
its plans for stabilizing and restructuring the financial system. Hopes exist
for further fiscal stimulus later in the year, but major tax reform does not
seem imminent. In Asia, we hope to see clarified the extent of the bad debt
problem in the banking system when 1997 results are released. We need to see
governments enacting changes in the law to make a cleaner, clearer financial
system in order to have confidence that the existing problems are being
resolved.
2
<PAGE>
Phoenix Worldwide Opportunities Fund
- --------------------------------------------------------------------------------
INVESTMENTS AT DECEMBER 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
-------------- -----------
<S> <C> <C>
COMMON STOCKS--96.8%
Argentina--1.4%
Banco de Galicia y Buenos Aires SA
de C.V. ADR (Banks) ..................... 40,800 $ 1,050,600
Telefonica de Argentina SA Sponsored
ADR (Utility-Telephone) ................. 31,200 1,162,200
-----------
2,212,800
-----------
Australia--0.6%
Westpac Banking Corporation Ltd.
(Banks) ................................. 153,000 978,594
-----------
Brazil--0.8%
Telebras Sponsored ADR
(Utility-Telephone) ..................... 10,600 1,234,237
-----------
Canada--2.0%
Bank of Montreal (Banks) .................. 26,800 1,186,429
Northern Telecom Ltd.
(Communications Equipment) .............. 23,200 2,061,412
-----------
3,247,841
-----------
Finland--0.8%
Raision Tehtaat Oy (Foods) ................ 11,200 1,330,738
-----------
France--7.4%
Alcatel Alsthom (Communications
Equipment) .............................. 15,200 1,932,910
Axa-UAP (Insurance (Multi-Line)) .......... 22,700 1,757,271
Banque Nationale de Paris (Banks) ......... 24,700 1,313,463
Coflexip SA (Oil & Gas (Drilling &
Equipment)) ............................. 8,000 884,338
GrandVision (Retail) ...................... 13,600 559,753
Rhone-Poulenc (Health Care
(Diversified)) .......................... 26,100 1,169,680
Societe Generale (Banks) .................. 9,500 1,294,923
Total SA (Oil (Integrated)) ............... 26,500 2,885,319
-----------
11,797,657
-----------
Germany--3.0%
Adidas AG (Textiles (Apparel)) ............ 11,950 1,572,508
Deutsche Lufthansa AG Registered
Shares (Airlines) ....................... 93,100 1,786,402
Muenchener Rueckversicherungs-
Gesellschaft AG Registered Shares
(Insurance (Reinsurance)) ............... 3,500 1,319,800
-----------
4,678,710
-----------
Hong Kong--0.0%
Henderson China Holding Ltd. (Real
Estate) ................................. 768 614
-----------
Hungary--0.6%
Matav Rt. Sponsored ADR (Utility-
Telephone) (b) .......................... 36,600 951,600
-----------
<CAPTION>
SHARES VALUE
-------------- -----------
<S> <C> <C>
Ireland--0.4%
Elan Corp. PLC Sponsored ADR
(Health Care (Medical Products &
Supplies)) (b) .......................... 11,670 $ 597,358
-----------
Italy--5.2%
Banca Fideuram SPA (Financial
(Diversified)) .......................... 140,400 615,045
Ericsson SPA (Communications
Equipment) .............................. 25,000 1,091,631
Istituto Mobiliare Italiano SPA (Banks) 119,400 1,418,216
La Fondiaria Assicurazioni (Insurance
(Multi-Line)) (b) ....................... 147,800 794,176
Mediolanum SPA (Financial
(Diversified)) .......................... 46,000 866,405
Telecom Italia Mobile RNC
(Telecommunications
(Cellular/Wireless)) (b) ................ 235,000 668,582
Telecom Italia Mobile SPA
(Telecommunications
(Cellular/Wireless)) .................... 309,000 1,427,031
Telecom Italia SPA (Utility-
Telephone) .............................. 209,500 1,339,002
-----------
8,220,088
-----------
Japan--0.8%
Nintendo Co. Ltd. (Leisure Time
(Products)) ............................. 5,800 570,985
Sankyo Co. Ltd. (Health Care (Drugs-
Major Pharmaceuticals)) ................. 12,000 272,264
Taisho Pharmaceutical Co. Ltd. (Health
Care (Drugs-Major Pharmaceuticals)) 14,000 358,557
-----------
1,201,806
-----------
Mexico--3.8%
Cemex SA de C.V. (Building
Materials) (b)(c) ....................... 109,500 581,334
Coca-Cola Femsa SA Sponsored ADR
(Beverages (Non-Alcoholic)) ............. 21,600 1,252,800
Grupo Financiero Bancomer SA de
C.V. (Banks) (b) ........................ 930,000 604,480
Grupo Televisa SA Sponsored GDR
(Publishing, Broadcasting &
Printing) (b) ........................... 45,150 1,746,741
Telefonos de Mexico SA Sponsored
ADR (Utility -Telephone) ................ 33,500 1,878,094
-----------
6,063,449
-----------
Netherlands--6.1%
Benckiser NV Class B (Cosmetics &
Soaps) (b) .............................. 16,000 662,194
Getronics NV (Computers (Software &
Services)) .............................. 55,800 1,778,157
</TABLE>
See Notes to Financial Statements
3
<PAGE>
Phoenix Worldwide Opportunities Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------------ ------------
<S> <C> <C>
Netherlands--continued
IHC Caland NV (Oil & Gas (Drilling
& Equipment)) .......................... 21,800 $1,131,294
ING Groep NV (Financial (Diversified)) 38,000 1,600,829
Oce NV (Office Equipment & Supplies) ..... 9,600 1,046,567
VNU-Verenigde Bezit (Publishing) ......... 42,500 1,199,191
Vendex International NV (Retail
(General Merchandise)) ................. 39,500 2,180,372
----------
9,598,604
----------
Norway--0.4%
Smedvig ASA A Shares (Oil Service) ....... 31,350 663,393
----------
Poland--0.4%
Amica Wronki SA (Manufacturing
(Consumer Durables)) (b) ............... 36,300 617,890
----------
Portugal--2.3%
Brisa-Auto Estradas de Portugal SA
(Utility-Toll Road) (b) ................ 2,500 89,655
Portugal Telecom SA
(Utility-Telephone) .................... 35,200 1,635,122
Telecel-Comunicacoes Pessoais SA
(Telecommunications
(Cellular/Wireless)) (b) ............... 18,500 1,973,326
----------
3,698,103
----------
Spain--3.2%
Banco Santander SA (Banks) ............... 40,400 1,349,181
Dragados & Construcciones SA
(Construction) ......................... 24,000 510,972
Tabacalera SA (Tobacco) .................. 18,000 1,458,514
Telefonica de Espana (Utility-
Telephone) ............................. 61,800 1,763,798
----------
5,082,465
----------
Sweden--0.4%
Biora AB (Health Care (Medical
Products & Supplies)) (b) .............. 33,300 344,151
Biora AB Sponsored ADR (Health Care
(Medical Products & Supplies)) (b) ..... 12,000 249,000
----------
593,151
----------
Switzerland--9.5%
Ares-Serono Group Bearer Shares
(Health Care (Diversified)) ............ 1,080 1,784,573
Ciba Specialty Chemicals AG
Registered Shares (Chemicals
(Specialty)) (b) ....................... 10,600 1,264,587
Credit Suisse Group Registered Shares
(Financial (Diversified)) .............. 13,500 2,091,875
Novartis AG Registered Shares (Health
Care (Drugs-Major Pharmaceuticals)) 2,290 3,721,152
Roche Holding AG (Health Care
(Diversified)) ......................... 135 1,342,595
Schweizerische Lebensversicherungs
(Insurance (Life/Health)) .............. 2,550 2,005,382
Zurich Versicherungs-Gesellschaft
Registered Shares (Financial
(Diversified)) ......................... 5,820 2,777,319
----------
14,987,483
----------
<CAPTION>
SHARES VALUE
------------- ------------
<S> <C> <C>
United Kingdom--18.1%
British Aerospace PLC
(Aerospace/Defense) .................... 109,700 $3,142,796
British Petroleum Co. PLC (Oil
(Integrated)) .......................... 144,400 1,902,126
British Petroleum Co. PLC Sponsored
ADR (Oil (Integrated)) ................. 5,500 438,281
Compass Group PLC (Services
(Catering)) ............................ 108,000 1,322,231
GKN PLC (Engineering) .................... 75,000 1,539,000
Glaxo Wellcome PLC (Health Care
(Drugs-Major Pharmaceuticals)) ......... 56,460 1,336,013
Granada Group PLC (Leisure Time
(Products)) ............................ 43,000 663,008
Kingfisher PLC (Retail (General
Merchandise)) .......................... 44,600 622,360
Legal & General Group PLC
(Insurance (Life)) ..................... 236,300 2,041,427
Lloyds TSB Group PLC (Financial
(Diversified)) ......................... 253,800 3,282,653
Misys PLC (Computers (Software &
Services)) ............................. 32,157 968,361
Next PLC (Retail (General
Merchandise)) .......................... 185,500 2,112,325
Norwich Union PLC (Insurance
(Life/Health)) (b) ..................... 120,000 737,535
Rentokil Initial PLC (Business
Services) .............................. 330,000 1,460,754
Siebe PLC (Electrical Equipment) ......... 66,000 1,238,111
SmithKline Beecham PLC (Health
Care (Drugs-Major Pharmaceuticals)) 125,120 1,287,849
Stagecoach Holdings PLC
(Transportation) ....................... 95,200 1,314,346
Vodafone Group PLC
(Telecommunications
(Cellular/Wireless)) ................... 206,900 1,509,958
WPP Group PLC (Services
(Advertising/Marketing)) ............... 148,500 658,561
Williams PLC (Manufacturing (Fire
Safety/Security Products)) ............. 190,500 1,053,283
----------
28,630,978
----------
United States--29.6%
BMC Software, Inc. (Computers
(Software & Services)) (b) ............. 40,000 2,625,000
CVS Corp. (Retail (Drug Stores)) ......... 37,700 2,415,156
Centocor, Inc. (Biotechnology) (b) ....... 65,000 2,161,250
Centura Software Corp. (Computers
(Software & Services)) (b) ............. 3,436 3,865
Chancellor Media Corp. (Broadcasting
(Television, Radio & Cable)) (b) ....... 44,000 3,283,500
CIENA Corp. (Communications
Equipment) (b) ......................... 44,600 2,726,175
Conmed Corp. (Health Care (Medical
Products & Supplies)) (b) .............. 90,000 2,362,500
Cooper Cameron Corp. (Oil & Gas
(Drilling & Equipment)) (b) ............ 40,000 2,440,000
</TABLE>
See Notes to Financial Statements
4
<PAGE>
Phoenix Worldwide Opportunities Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C>
United States--continued
Coram Healthcare Corp. (Health Care
(Hospital Management)) (b) ................ 3,720 $ 12,555
General Electric Co. (Electrical
Equipment) ................................ 36,000 2,641,500
International Business Machines Corp.
(Computers (Hardware)) .................... 24,500 2,561,781
Marine Drilling Companies, Inc. (Oil &
Gas (Drilling & Equipment)) (b) ........... 40,000 830,000
National Semiconductor Corp.
(Electronics (Semiconductors)) (b) ........ 87,500 2,269,531
Philip Morris Companies, Inc.
(Tobacco) ................................. 75,000 3,398,437
RealNetworks, Inc. (Computers
(Software & Services)) (b) ................ 30,000 416,250
Schlumberger Ltd. (Oil & Gas (Drilling
& Equipment)) ............................. 30,000 2,415,000
SouthTrust Corp. (Banks (Major
Regional)) ................................ 50,000 3,171,875
Sunbeam Corp. (Household Furn. &
Appliances) ............................... 60,000 2,527,500
Texas Instruments, Inc. (Electronics
(Semiconductors)) ......................... 30,000 1,350,000
Travelers Group, Inc. (Insurance
(Multi-Line)) ............................. 51,000 2,747,625
U.S. Bancorp (Banks (Major Regional)) 25,000 2,798,437
Watson Pharmaceuticals, Inc.
(Health Care (Drugs-Major
Pharmaceuticals)) (b) ..................... 50,000 1,621,875
------------
46,779,812
------------
TOTAL COMMON STOCKS
(Identified cost $132,698,334) ...................... 153,167,371
------------
<CAPTION>
SHARES VALUE
-------- --------------
<S> <C> <C>
PREFERRED STOCKS--1.9%
Germany--1.9%
SAP AG-Vorzug Pfd. (Computers
(Software & Services)) .................... 9,400 $ 3,076,696
------------
TOTAL PREFERRED STOCKS
(Identified cost $2,286,840) ........................... 3,076,696
------------
WARRANTS--0.1%
France--0.1%
Rhone-Poulenc Warrant (Health Care
(Diversified)) (b) ........................ 42,630 146,687
------------
TOTAL WARRANTS
(Identified cost $140,229) ............................ 146,687
------------
TOTAL LONG-TERM INVESTMENTS--98.8%
(Identified cost $135,125,403) ........................ 156,390,754
------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000)
-------- ------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--0.4%
Commercial Paper--0.4%
BellSouth Telecommunications,
Inc. 6%, 1/5/98 ........... A-1+ $115 114,923
Preferred Receivables
Funding Corp.
5.65%, 1/13/98 ............ A-1+ 250 249,494
Exxon Imperial U.S.,
Inc. 5.82%, 1/14/98 ....... A-1 255 254,464
------------
618,881
------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $618,917)................... 618,881
------------
TOTAL INVESTMENTS--99.2%
(Identified cost $135,744,320)............... 157,009,635(a)
Cash and receivables, less liabilities--0.8% 1,228,999
------------
NET ASSETS--100.0% ............................ $158,238,634
=============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $23,970,720 and gross
depreciation of $2,705,405 for federal income tax purposes. At December
31, 1997, the aggregate cost of securities for federal income tax purposes
was $135,744,320.
(b) Non-income producing.
(c) 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 Value of Long-Term Investments
(Unaudited)
<TABLE>
<S> <C>
Aerospace/Defense ................................. 2.0%
Airlines .......................................... 1.1
Banks ............................................. 9.7
Beverages (Non-Alcoholic) ......................... 0.8
Biotechnology ..................................... 1.4
Broadcasting (Television, Radio, & Cable) ......... 2.1
Building Materials ................................ 0.4
Business Services ................................. 0.9
Chemicals (Specialty) ............................. 0.8
Communications Equipment .......................... 5.0
Computers (Hardware) .............................. 1.6
Computers (Software & Services) ................... 5.7
Construction ...................................... 0.3
Cosmetics & Soaps ................................. 0.4
Electrical Equipment .............................. 2.5
Electronics (Semiconductors) ...................... 2.3
Engineering ....................................... 1.0
Financial (Diversified) ........................... 7.2
Foods ............................................. 0.9
Health Care (Diversified) ......................... 2.8
Health Care (Drugs-Major Pharmaceuticals) ......... 5.5
Health Care (Medical Products & Supplies) ......... 2.3
Household Furn. & Appliances ...................... 1.6
Insurance (Life) .................................. 1.3
Insurance (Life/Health) ........................... 1.8
Insurance (Multi-Line) ............................ 3.4
Insurance (Reinsurance) ........................... 0.8
Leisure Time (Products) ........................... 0.8
Manufacturing (Consumer Durables) ................. 0.4
Manufacturing (Fire Safety/Security Products) ..... 0.7
Office Equipment & Supplies ....................... 0.7
Oil (Integrated) .................................. 3.3
Oil Service ....................................... 0.4
Oil & Gas (Drilling & Equipment) .................. 4.9
Publishing ........................................ 0.8
Publishing, Broadcasting & Printing ............... 1.1
Retail ............................................ 0.4
Retail (Drug Stores) .............................. 1.6
Retail (General Merchandise) ...................... 3.1
Services (Catering) ............................... 0.8
Services (Advertising/Marketing) .................. 0.4
Telecommunications (Cellular/Wireless) ............ 3.6
Textiles (Apparel) ................................ 1.0
Tobacco ........................................... 3.1
Transportation .................................... 0.8
Utility-Telephone ................................. 6.4
Utility-Toll Road ................................. 0.1
-----
100.0%
=====
</TABLE>
See Notes to Financial Statements
6
<PAGE>
Phoenix Worldwide Opportunities Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $135,744,320) $157,009,635
Foreign currency at value
(Identified cost $2,983) 2,981
Cash 600
Receivables
Investment securities sold 1,372,189
Dividends and interest 108,204
Tax reclaim 53,630
Fund shares sold 25,714
Net unrealized appreciation on
forward currency contracts 226,504
------------
Total assets 158,799,457
------------
Liabilities
Payables
Fund shares repurchased 81,714
Transfer agent fee 104,899
Investment advisory fee 99,695
Distribution fee 38,481
Financial agent fee 7,186
Trustees' fee 3,247
Accrued expenses 225,601
------------
Total liabilities 560,823
------------
Net Assets $158,238,634
============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $136,282,892
Undistributed net investment income 1,001,261
Accumulated net realized loss (534,559)
Net unrealized appreciation 21,489,040
------------
Net Assets $158,238,634
============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $149,915,778) 15,247,358
Net asset value per share $9.83
Offering price per share
$9.83/(1-4.75%) $10.32
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $8,322,856) 869,170
Net asset value and offering price per share $9.58
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Investment Income
Dividends $ 766,935
Interest 350,438
Foreign taxes withheld (50,439)
----------
Total investment income 1,066,934
----------
Expenses
Investment advisory fee 615,067
Distribution fee--Class A 194,105
Distribution fee--Class B 43,667
Financial agent fee 43,894
Transfer agent 184,650
Custodian 90,000
Printing 28,230
Professional 25,740
Registration 15,018
Trustees 10,908
Miscellaneous 31,854
----------
Total expenses 1,283,133
----------
Net investment loss (216,199)
----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 8,130,024
Net realized loss on foreign currency transactions (2,561,759)
Net change in unrealized appreciation (depreciation)
on investments 1,138,446
Net change in unrealized appreciation (depreciation)
on foreign currency and foreign currency transactions 139,741
----------
Net gain on investments 6,846,452
----------
Net increase in net assets resulting from
operations $6,630,253
==========
</TABLE>
See Notes to Financial Statements
7
<PAGE>
Phoenix Worldwide Opportunities Fund
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
December 31, 1997 Year Ended
(Unaudited) June 30, 1997
------------------- ----------------
<S> <C> <C>
From Operations
Net investment income (loss) $ (216,199) $ 465,980
Net realized gain 5,568,265 15,784,753
Net change in unrealized appreciation (depreciation) 1,278,187 3,210,431
------------- -------------
Increase in net assets resulting from operations 6,630,253 19,461,164
------------- -------------
From Distributions to Shareholders
Net investment income--Class A (143,119) (547,706)
Net investment income--Class B -- (3,491)
Net realized gains--Class A (17,971,931) (10,600,864)
Net realized gains--Class B (1,023,523) (464,200)
In excess of net investment income--Class A -- (36,512)
In excess of net investment income--Class B -- (233)
------------- -------------
Decrease in net assets from distributions to shareholders (19,138,573) (11,653,006)
------------- -------------
From Share Transactions
Class A
Proceeds from sales of shares (460,058 and 7,287,155 shares, respectively) 5,082,324 73,684,613
Net asset value of shares issued from reinvestment of distributions
(1,716,156 and 1,017,922 shares, respectively) 16,423,612 9,812,762
Cost of shares repurchased (1,163,640 and 8,259,993 shares, respectively) (12,802,919) (83,959,118)
------------- -------------
Total 8,703,017 (461,743)
------------- -------------
Class B
Proceeds from sales of shares (78,393 and 294,976 shares, respectively) 848,600 2,922,714
Net asset value of shares issued from reinvestment of distributions
(100,820 and 40,165 shares, respectively) 939,638 381,165
Cost of shares repurchased (108,776 and 99,485 shares, respectively) (1,161,517) (994,110)
------------- -------------
Total 626,721 2,309,769
------------- -------------
Increase in net assets from share transactions 9,329,738 1,848,026
------------- -------------
Net increase (decrease) in net assets (3,178,582) 9,656,184
Net Assets
Beginning of period 161,417,216 151,761,032
------------- -------------
End of period (including undistributed net investment income of $1,001,261
and $1,360,579, respectively) $ 158,238,634 $ 161,417,216
============= =============
</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
-----------------------------------------------------------------------------------------
Six Months
Ended
12/31/97 Year Ended June 30,
(Unaudited) 1997 1996 1995 1994 1993
------------- ----------- ------------ ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.75 $10.29 $9.04 $10.17 $8.00 $7.18
Income from investment operations(6)
Net investment income (loss) (0.01)(1) 0.03(1) (0.02)(1) 0.01(1) 0.01 0.03
Net realized and unrealized gain 0.43 1.25 1.87 0.56 2.19 0.79
--------- --------- --------- --------- --------- --------
Total from investment operations 0.42 1.28 1.85 0.57 2.20 0.82
--------- --------- --------- --------- --------- --------
Less distributions:
Dividends from net investment income (0.01) (0.04) -- -- (0.03) --
Dividends from net realized gains (1.33) (0.78) (0.60) (1.37) -- --
In excess of net realized gains -- -- -- (0.33) -- --
--------- --------- --------- --------- --------- --------
Total distributions (1.34) (0.82) (0.60) (1.70) (0.03) --
--------- --------- --------- --------- --------- --------
Change in net asset value (0.92) 0.46 1.25 (1.13) 2.17 0.82
--------- --------- --------- --------- --------- --------
Net asset value, end of period $ 9.83 $10.75 $10.29 $9.04 $10.17 $ 8.00
========= ========= ========= ========= ========= ========
Total return(2) 4.21%(3) 13.40% 21.39% 6.53% 27.46% 11.42%
Ratios/supplemental data:
Net assets, end of period (thousands) $149,916 $153,005 $146,052 $126,481 $118,707 $88,870
Ratio to average net assets of:
Operating expenses 1.52% (4) 1.53% 1.60% 1.80% 1.50% 1.88%
Net investment income (loss) (0.22)%(4) 0.34% (0.19)% 0.16% 0.09% 0.61%
Portfolio turnover 120% (3) 234% 245% 277% 259% 95%
Average commission rate paid(5) $0.0289 $0.0180 N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
Class B
----------------------------------------------------------------------
Six Months From
Ended Inception
12/31/97 Year Ended June 30, 7/15/94 to
(Unaudited) 1997 1996 6/30/95
------------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.53 $10.14 $8.98 $10.40
Income from investment operations(6)
Net investment loss (0.05)(1) (0.03)(1) (0.08)(1) (0.02)(1)
Net realized and unrealized gain 0.43 1.21 1.84 0.30
---------- -------- --------- --------
Total from investment operations 0.38 1.18 1.76 0.28
---------- -------- --------- --------
Less distributions:
Dividends from net investment income -- (0.01) -- --
Dividends from net realized gains (1.33) (0.78) (0.60) (1.37)
In excess of net realized gains -- -- -- (0.33)
---------- -------- --------- --------
Total distributions (1.33) (0.79) (0.60) (1.70)
---------- -------- --------- --------
Change in net asset value (0.95) 0.39 1.16 (1.42)
---------- -------- --------- --------
Net asset value, end of period $9.58 $10.53 $10.14 $8.98
========== ======== ========= ========
Total return(2) 3.92%(3) 12.46% 20.50% 3.54%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $8,323 $8,412 $5,709 $2,849
Ratio to average net assets of:
Operating expenses 2.27% (4) 2.29% 2.34% 2.61% (4)
Net investment loss (0.97)%(4) (0.35)% (0.86)% (0.33)%(4)
Portfolio turnover 120% (3) 234% 245% 277%
Average commission rate paid(5) $0.0289 $0.0180 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) 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, mark-downs, or spreads on shares traded on a principal
basis.
(6) Distributions are made in accordance with the prospectus; however, class
level per share income from investment operations may vary from
anticipated results depending on the timing of share purchases and
redemptions.
See Notes to Financial Statements
9
<PAGE>
PHOENIX WORLDWIDE OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 1997 (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 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
10
<PAGE>
PHOENIX WORLDWIDE OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 1997 (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 $4,288 for Class A shares and
deferred sales charges of $20,196 for Class B shares for the six months ended
December 31, 1997. 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, 1997, approximately $98,044 was retained by the Distributor,
$133,544 was paid to unaffiliated participants, and $6,184 was paid to W.S.
Griffith, an indirect subsidiary of PHL.
As Financial Agent of the Fund, PEPCO received a fee for bookkeeping,
administration, and pricing services at an annual rate of 0.05% of the average
daily net assets up to $100 million, 0.04% of average daily net assets of $100
million to $300 million, 0.03% of average daily net assets of $300 million
through $500 million, and 0.015% of average daily net assets greater than $500
million; a minimum fee may apply. 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, 1997, transfer agent fees were $184,650 of which
PEPCO retained $62,531 which is net of the fees paid to State Street.
At December 31, 1997, PHL and affiliates held 195 Class A shares and 2
Class B shares of the Fund with a combined value of $1,931.
3. PURCHASE AND SALE OF SECURITIES
Portfolio purchases and sales of investments, excluding short-term
securities and forward currency contracts, for the six months ended December 31,
1997, aggregated $179,685,018 and $185,809,632, respectively. There were no
purchases or sales of long-term U.S. Government securities.
4. FORWARD CURRENCY CONTRACTS
As of December 31, 1997, 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>
UK 3,500,000 US 5,763,450 3/2/98 $5,740,601 $ 22,849
DM 13,000,000 US 7,322,087 3/2/98 7,255,288 66,799
FF 73,500,000 US 12,368,740 3/2/98 12,252,962 115,778
FL 8,000,000 US 3,997,002 3/2/98 3,961,423 35,579
US 1,781,595 FF 10,600,000 3/2/98 1,767,094 (14,501)
--------
$226,504
========
</TABLE>
UK = British Pounds Sterling
DM = German Deutschemark
FF = French Franc
FL = Dutch Florin
US = 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.
11
<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
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[BACK COVER]
-----------------
Phoenix Funds BULK RATE MAIL
PO BOX 2200 U.S. POSTAGE
ENFIELD CT 06083-2200 PAID
SPRINGFIELD, MA
PERMIT NO. 444
-----------------
[LOGO] PHOENIX
DUFF & PHELPS
PDP 682 (2/98)
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<ARTICLE> 6
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<NAME> PHOENIX WORLDWIDE OPPORTUNITIES FUND
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<PER-SHARE-GAIN-APPREC> 0.43
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<PER-SHARE-DISTRIBUTIONS> (1.33)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.83
<EXPENSE-RATIO> 1.52
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
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<NAME> PHOENIX WORLDWIDE OPPORTUNITIES B
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<S> <C>
<PERIOD-TYPE> 6-MOS
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<PERIOD-START> JUL-01-1997
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<DISTRIBUTIONS-OF-GAINS> (1024)
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<NUMBER-OF-SHARES-SOLD> 78
<NUMBER-OF-SHARES-REDEEMED> (109)
<SHARES-REINVESTED> 101
<NET-CHANGE-IN-ASSETS> (89)
<ACCUMULATED-NII-PRIOR> 1361
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<AVERAGE-NET-ASSETS> 162681
<PER-SHARE-NAV-BEGIN> 10.53
<PER-SHARE-NII> (0.05)
<PER-SHARE-GAIN-APPREC> 0.43
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<EXPENSE-RATIO> 2.27
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</TABLE>
