<PAGE>
Phoenix Investment Partners
DECEMBER 31, 1998
ABERDEEN
SEMIANNUAL REPORT
Phoenix-Aberdeen
Worldwide
Opportunities
Fund
[LOGO] PHOENIX
INVESTMENT PARTNERS
<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>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
[PHOTO]
PHILIP MCLOUGHLIN
We are pleased to provide this report for the Phoenix-Aberdeen Worldwide
Opportunities Fund for the six months ended December 31, 1998.
The past six months were remarkably volatile for world financial markets, and
1999 has begun in similar fashion. The devaluation of the Brazilian currency has
been the major occurrence so far this year, but we have also seen amazing
volatility in U.S. stocks, particularly those related to the Internet. Meanwhile
in Europe, the introduction of the euro has gotten off to a smooth start.
During such market extremes, it is important to keep a long-term perspective.
We believe that by remaining true to our investment discipline, we will continue
to add value for our shareholders over the long term. Of course, past
performance is not a guarantee of future results.
On the following pages, your Fund managers discuss their investment strategy
and provide their outlook for the next six months. We hope you find their
comments informative. If you have any questions, please contact your financial
advisor or call us at 1-800-243-4361.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
JANUARY 26, 1999
1
<PAGE>
PHOENIX-ABERDEEN WORLDWIDE OPPORTUNITIES FUND
A DISCUSSION WITH ONE OF THE FUND'S INVESTMENT TEAM MEMBERS, BEV HENDRY
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Fund is appropriate for investors seeking long-term capital appreciation
by investing primarily in a diversified portfolio of equity securities
throughout the world. The Fund essentially focuses on quality companies with
strong management, solid growth prospects and attractive relative valuations.
Investors should note that foreign investments pose added risks such as currency
fluctuation, less public disclosure, as well as economic and political risks.
Q: HOW DID THE FUND PERFORM DURING THIS VOLATILE MARKET ENVIRONMENT?
A: For the six months ended December 31, 1998, Class A shares returned 4.02% and
Class B shares returned 3.54% compared with a return of 6.79% for the Fund's
benchmark index, the Morgan Stanley Capital International (MSCI) World Index.(1)
All performance figures assume reinvestment of distributions and exclude the
effect of sales charges.
Q: WHAT FACTORS MOST AFFECTED PERFORMANCE?
A: The last six months was a period of amazing volatility in global markets.
After European and U.S. markets had reached their peak in early July, markets
worldwide tumbled on a flood of bad news. The initial catalyst for the dramatic
downturn was the financial crisis in Russia, where the ruble collapsed.
Nervousness spread to other markets, particularly Latin America where it was
feared that Brazil was the next in line to devalue. All of the region's
currencies came under intense pressure, interest rates soared, and equity
markets plunged more the 50% in less than two months. Confirmation that Japan
was suffering its worst economic slump since 1945 added to international market
worries and hopes for a rebound in Asian markets. The crash of the Russian ruble
and the severe downturn in worldwide markets also put many hedge funds in severe
financial difficulties, and the announcement that U.S. hedge fund manager
Long-Term Capital Management LP had been bailed out to the extent of $3.5
billion sent shock waves through the financial community.
All this bad news completely wiped out the year-to-date gains for many
markets, and by early October, markets had fallen to a one-year low. However,
concerted worldwide action since that time has resulted in a dramatic recovery
in worldwide markets as stocks rose on expectations that corporate profits would
benefit from lower interest rates. Much of the credit must be given to the U.S.
Federal Reserve, which cut interest rates, three times in seven weeks to ensure
that the U.S. economy did not slide into recession. We have also seen cuts in
European interest rates and the Japanese government announced a major package to
stimulate its failing economy. Markets in Southeast Asia also showed signs of
recovery with the perception that the worst is now over for that region. The
successful completion of an International Monetary Fund (IMF) rescue package for
Brazil also helped bolster world markets with a strong rebound for emerging
markets that had been particularly badly affected by the late summer downturn.
(1) THE MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) WORLD INDEX IS AN UNMANAGED,
COMMONLY USED MEASURE OF TOTAL RETURN GLOBAL MARKET PERFORMANCE. THE INDEX
IS NOT AVAILABLE FOR DIRECT INVESTMENT.
2
<PAGE>
PHOENIX-ABERDEEN WORLDWIDE OPPORTUNITIES FUND (CONTINUED)
Q: WHAT CHANGES HAVE BEEN MADE TO THE FUND'S ASSET ALLOCATION?
A: In the second half of the year, we reduced our large overweighting to
European equities. This area had resulted in substantial outperformance for the
Fund, but we were concerned that valuations had advanced too quickly in many
instances. We decided that it would be opportune to take profits in Europe and
reinvest the proceeds in the United States, where we had been underweighted and
Japan where the Fund had previously no holdings. This strategy has proved
successful to date as, although both the European and Japanese markets have
fallen since July, the Japanese yen has strengthened significantly, resulting in
net dollar gains for our Japanese investments. In addition, the United States
recovered strongly in the last quarter to reach a new high, with our technology
holdings, such as Microsoft, IBM and Intel, performing particularly strongly.
Q: WHAT IS YOUR OUTLOOK FOR WORLDWIDE MARKETS?
A: While the manufacturing sector continues under pressure in most countries,
consumer confidence is rebounding once again in a number of economies,
suggesting still relatively buoyant consumer spending. Merger and acquisition
activity, liquidity, momentum and a consumer-led domestic economy, which is so
far proving more resilient than most commentators expected, have provided
powerful supports for the U.S. market where the main indices are again reaching
record highs. However, investors' desire to chase stocks ever higher may well
cool, and we believe the chance of another sell-off in the first half of 1999
remains high, particularly if corporate earnings disappoint. The Federal Reserve
decided to leave interest rates unchanged at their final meeting of the year,
and it is unlikely, in our opinion, that we will see any further cuts in early
1999. Technology stocks, in particular, have seen recent sharp rises, and there
are questions of whether we are witnessing structural or cyclical growth in the
sector. We believe technology sector earnings could prove relatively immune to a
downturn in the economic cycle; however, there is a danger from over optimism.
Meanwhile, investors seem to be looking for sector confidence and appear
prepared to accept high multiples in exchange for earnings certainty.
The rally in the U.K. has returned it to a level that is above most revised
expectations for this year and only around 10-12% below the more optimistic
forecasts for next year. However, it is the excellent technical position that
provides the strongest support together with the prospect of further monetary
easing a certainty in the U.K. Economic growth forecasts, meanwhile, remain
under pressure and will clearly impact further on earnings expectations. As with
the U.K., continental Europe appears less at risk than the U.S. from a valuation
perspective, even given the degree to which perceptions surrounding Europe's
economic growth and earnings prospects have deteriorated since the tremendous
rally earlier in the year. We believe additional rate cuts are on the agenda for
early next year and should offset any concerns over the launch of the euro.
Q: DO YOU BELIEVE PROBLEMS IN SOUTHEAST ASIA AND OTHER EMERGING COUNTRIES ARE
OVER NOW?
A: In the Far East, sentiment towards Japan is improving, with fund managers
becoming increasingly nervous of their generally underweight positions in the
stock market and currency. There is growing optimism about the economy and
banking system following the government's recent measures, but this may be due
more to the hope that this will prevent imminent freefall than belief that the
plans solve Japan's structural problems. Further short-term support for the
stock market may
3
<PAGE>
PHOENIX-ABERDEEN WORLDWIDE OPPORTUNITIES FUND (CONTINUED)
emerge from eventual agreement between the LDP and Liberals to suspend the sales
tax. Elsewhere in Asia, currencies have stabilized and interest rates have
fallen. A protracted recovery is likely, provided that there is no worsening of
the U.S. and Japanese economies.
Emerging markets outside Asia have also recovered strongly, and a pause now
seems probable. In Latin America, the IMF restructure package has presented
Brazil with the opportunity to resolve structural issues that have held the
country back for some time.
Overall, the scale of recent rallies suggests a period of consolidation is
due. However, liquidity-driven rallies, in our opinion, tend to be stronger and
continue longer than most people expect, and it would be no surprise to see
markets squeezed higher over the short term. The U.S. will set the trends for
other equity markets, and a soft landing, very low inflation, falling interest
rates and steady earnings growth is a possibility. Add in excess liquidity and
continuing merger and acquisition activity, and we think valuations could go
even higher.
JANUARY 5, 1999
4
<PAGE>
Phoenix-Aberdeen Worldwide Opportunities Fund
TEN LARGEST HOLDINGS AT DECEMBER 31, 1998 (AS A PERCENTAGE OF TOTAL NET ASSETS)
<TABLE>
<C> <S> <C>
1. Intel Corp. 1.91%
DESIGNS, DEVELOPS AND MARKETS ADVANCED MICROCOMPUTER COMPONENTS
2. International Business Machines Corp. 1.61%
PROVIDES ADVANCED INFORMATION TECHNOLOGIES
3. Microsoft Corp. 1.54%
WORLD'S LEADING COMPUTER SOFTWARE COMPANY
4. AirTouch Communications, Inc. 1.52%
PROVIDES WIRELESS TELECOMMUNICATIONS AND PAGING SERVICES
5. Pfizer, Inc. 1.41%
PRODUCES AND DISTRIBUTES PROPRIETARY HEALTH-RELATED ITEMS
6. Novartis AG 1.34%
MANUFACTURES HEALTH-CARE PRODUCTS FOR WORLDWIDE DISTRIBUTION
7. Bristol-Myers Squibb Co. 1.25%
COMPREHENSIVE HEALTH-CARE COMPANY
8. General Electric Co. 1.18%
DIVERSIFIED MANUFACTURING AND FINANCIAL SERVICES PROVIDER
9. Safeway, Inc. 1.18%
OPERATES A CHAIN OF FOOD AND DRUG STORES
10. Compuware Corp. 1.12%
DEVELOPS AND MARKETS PROGRAMMING AND APPLICATION PRODUCTIVITY
SOFTWARE
</TABLE>
INVESTMENTS AT DECEMBER 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
---------- -------------
<S> <C> <C> <C>
COMMON STOCKS--45.0%
UNITED STATES--45.0%
AirTouch Communications, Inc.
(Telecommunications
(Cellular/Wireless))(b)............. 41,300 $ 2,978,763
America Online, Inc. (Computers
(Software & Services))(b)........... 5,800 928,000
American International Group, Inc.
(Insurance (Multi-Line))............ 11,650 1,125,681
Amoco Corp. (Oil (International
Integrated))........................ 26,200 1,581,825
Anheuser-Busch Companies, Inc.
(Beverages (Alcoholic))............. 13,800 905,625
AT&T Corp. (Telecommunications (Long
Distance)).......................... 17,400 1,309,350
Bank One Corp. (Banks (Major
Regional)).......................... 15,742 803,826
BankAmerica Corp. (Banks (Money
Center))............................ 19,231 1,156,264
Baxter International, Inc. (Health
Care (Medical Products &
Supplies)).......................... 17,000 1,093,312
Becton, Dickinson and Co. (Health
Care (Medical Products &
Supplies)).......................... 8,500 362,844
BellSouth Corp. (Telephone)......... 21,000 1,047,375
BMC Software, Inc. (Computers
(Software & Services))(b)........... 31,400 1,399,262
Borders Group, Inc. (Retail
(Specialty))(b)..................... 18,500 461,344
Bristol-Myers Squibb Co. (Health
Care (Diversified))................. 18,300 2,448,769
Capital One Financial Corp.
(Consumer Finance).................. 9,800 1,127,000
Cardinal Health, Inc. (Distributors
(Food & Health)).................... 17,850 1,354,369
Carnival Corp. (Lodging-Hotels)..... 9,900 475,200
CBS Corp. (Broadcasting (Television,
Radio & Cable))..................... 13,700 448,675
Chancellor Media Corp. (Broadcasting
(Television, Radio & Cable))(b)..... 11,000 526,625
<CAPTION>
SHARES VALUE
---------- -------------
<S> <C> <C> <C>
UNITED STATES--CONTINUED
Cisco Systems, Inc. (Computers
(Networking))(b).................... 14,950 $ 1,387,547
Citigroup, Inc. (Financial
(Diversified))...................... 26,200 1,296,900
Clear Channel Communications, Inc.
(Broadcasting (Television, Radio &
Cable))(b).......................... 8,500 463,250
Clorox Co. (The) (Household Products
(Non-Durables))..................... 2,900 338,756
Colgate-Palmolive Co. (Household
Products (Non-Durables))............ 4,400 408,650
Compuware Corp. (Computers (Software
& Services))(b)..................... 28,200 2,203,125
Conoco, Inc. (Oil (International
Integrated))(b)..................... 15,500 323,563
CVS Corp. (Retail (Drug Stores)).... 31,700 1,743,500
Edwards (J.D.) & Co. (Computers
(Software & Services))(b)........... 10,900 309,287
EMC Corp. (Computers
(Peripherals))(b)................... 17,200 1,462,000
Fox Entertainment Group, Inc. Class
A (Broadcasting (Television, Radio &
Cable))(b).......................... 11,100 279,581
Freddie Mac (Financial
(Diversified))...................... 31,100 2,004,006
General Electric Co. (Electrical
Equipment).......................... 22,800 2,327,025
Genzyme Corp. (Health Care (Medical
Products & Supplies))(b)............ 8,900 442,775
HBO & Co. (Computers (Software &
Services)).......................... 51,900 1,488,881
Halliburton Co. (Oil & Gas (Drilling
& Equipment))....................... 5,900 174,787
Home Depot, Inc. (The) (Retail
(Building Supplies))................ 26,900 1,645,944
Intel Corp. (Electronics
(Semiconductors))................... 31,600 3,746,575
International Business Machines
Corp. (Computers (Hardware))........ 17,100 3,159,225
Liberty Media Group Class A
(Broadcasting (Television, Radio &
Cable))(b).......................... 24,300 1,119,319
</TABLE>
See Notes to Financial Statements 5
<PAGE>
Phoenix-Aberdeen Worldwide Opportunities Fund
<TABLE>
<CAPTION>
SHARES VALUE
---------- -------------
<S> <C> <C> <C>
UNITED STATES--CONTINUED
MCI WorldCom, Inc.
(Telecommunications (Long
Distance))(b)....................... 21,958 $ 1,575,487
Medtronic, Inc. (Health Care
(Medical Products & Supplies))...... 19,400 1,440,450
Mellon Bank Corp. (Banks (Major
Regional)).......................... 9,300 639,375
Meyer (Fred), Inc. (Retail (Food
Chains))(b)......................... 26,900 1,596,625
Micron Technology, Inc. (Electronics
(Semiconductors))................... 12,400 626,975
Microsoft Corp. (Computers (Software
& Services))(b)..................... 21,800 3,023,387
Morgan Stanley Dean Witter & Co.
(Financial (Diversified))........... 14,900 1,057,900
Mylan Laboratories, Inc. (Health
Care (Diversified))................. 17,800 560,700
Oracle Corp. (Computers (Software &
Services))(b)....................... 19,400 836,625
PepsiCo, Inc. (Beverages
(Non-Alcoholic)).................... 32,900 1,346,844
Pfizer, Inc. (Health Care
(Drugs-Major Pharmaceuticals))...... 22,100 2,772,169
Procter & Gamble Co. (The)
(Household Products
(Non-Durables))..................... 12,600 1,150,537
ReliaStar Financial Corp. (Insurance
(Life/Health))...................... 11,900 548,887
Rite Aid Corp. (Retail (Drug
Stores))............................ 37,300 1,848,681
SBC Communications, Inc.
(Telephone)......................... 14,200 761,475
Safeway, Inc. (Retail (Food
Chains))(b)......................... 38,100 2,321,719
Schering-Plough Corp. (Health Care
(Drugs-Major Pharmaceuticals))...... 36,400 2,011,100
Schlumberger Ltd. (Oil & Gas
(Drilling & Equipment))............. 3,800 175,275
ServiceMaster Co. (The) (Services
(Commercial & Consumer))............ 21,000 463,313
Staples, Inc. (Retail
(Specialty))(b)..................... 25,600 1,118,400
Sterling Commerce, Inc. (Computers
(Software & Services))(b)........... 11,600 522,000
Tandy Corp. (Retail (Computers &
Electronics))....................... 8,500 350,094
Tele-Communications, Inc. Class A
(Broadcasting (Television, Radio &
Cable))(b).......................... 28,700 1,587,469
Tellabs, Inc. (Communications
Equipment)(b)....................... 10,200 699,337
Transocean Offshore, Inc. (Oil & Gas
(Drilling & Equipment))............. 5,800 155,513
Tyco International Ltd.
(Manufacturing (Diversified))....... 25,000 1,885,937
U.S. Bancorp (Banks (Major
Regional)).......................... 12,600 447,300
UNUM Corp. (Insurance
(Life/Health))...................... 9,400 548,725
USX-Marathon Group (Oil (Domestic
Integrated))........................ 54,700 1,647,838
Wal-Mart Stores, Inc. (Retail
(General Merchandise)).............. 8,400 684,075
Warner-Lambert Co. (Health Care
(Diversified))...................... 28,900 2,172,919
Waste Management, Inc. (Waste
Management)......................... 32,900 1,533,963
<CAPTION>
SHARES VALUE
---------- -------------
<S> <C> <C> <C>
UNITED STATES--CONTINUED
Watson Pharmaceuticals, Inc. (Health
Care (Drugs-Major
Pharmaceuticals))(b)................ 17,300 $ 1,087,738
Wells Fargo & Co. (Banks (Major
Regional)).......................... 35,300 1,409,794
- ---------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $70,921,061) 88,467,431
- ---------------------------------------------------------------------------
FOREIGN COMMON STOCKS--51.6%
ARGENTINA--0.2%
Banco Frances SA Sponsored ADR
(Banks (Major Regional))............ 10,000 207,500
Telecom Argentina SA Sponsored ADR
(Telephone)......................... 10,000 275,000
-------------
482,500
-------------
AUSTRALIA--0.5%
Australian Gas Light Co. Ltd. (Oil
(International Integrated))......... 75,000 540,709
QBE Insurance Group Ltd. (Insurance
(Multi-Line))....................... 125,000 517,524
-------------
1,058,233
-------------
BRAZIL--0.5%
Tele Centro Sul Participacoes SA ADR
(Telephone)(b)...................... 6,500 271,781
Tele Norte Leste Participacoes SA
ADR (Telephone)(b).................. 26,000 323,375
Tele Sudeste Celular Participacoes
SA ADR (Telecommunications
(Cellular/Wireless))................ 13,000 268,937
Telecomunicacoes Brasileiras SA
Sponsored ADR (Telephone)........... 2,400 174,450
-------------
1,038,543
-------------
DENMARK--0.3%
Tele Danmark A/S (Telecommunications
(Cellular/ Wireless))............... 4,250 573,625
FINLAND--1.0%
Nokia Oyj Class A
(Telecommunications (Cellular/
Wireless)).......................... 10,000 1,224,500
Raisio Group PLC (Foods)............ 68,700 759,822
-------------
1,984,322
-------------
FRANCE--4.8%
Alcatel (Telecommunications
(Cellular/Wireless))................ 5,300 648,978
Alstom (Machinery
(Diversified))(b)................... 45,500 1,067,041
Axa (Insurance (Multi-Line))........ 9,400 1,363,048
Castorama Dubois (Retail (Building
Supplies)).......................... 1,800 410,848
Coflexip SA (Oil & Gas (Drilling &
Equipment))......................... 5,800 393,519
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Phoenix-Aberdeen Worldwide Opportunities Fund
<TABLE>
<CAPTION>
SHARES VALUE
---------- -------------
<S> <C> <C> <C>
FRANCE--CONTINUED
Compagnie Financiere de Paribas
(Investment Banking/Brokerage)...... 11,200 $ 973,833
Elf Aquitaine SA (Oil (International
Integrated))........................ 6,250 722,788
Galeries Lafayette (Retail
(Department Stores))................ 785 843,178
Groupe Danone (Foods)............... 3,260 933,761
Pechiney SA Class A (Aluminum)...... 9,400 307,107
Pinault-Printemps-Redoute SA (Retail
(Department Stores))................ 3,300 630,933
Rhodia SA (Chemicals
(Specialty))(b)..................... 35,000 532,581
Total SA Class B (Oil (International
Integrated))........................ 6,450 653,543
-------------
9,481,158
-------------
GERMANY--4.3%
Adidas-Salomon AG (Textiles
(Apparel)).......................... 4,450 483,603
Bayerische Motoren Werke AG
(Automobiles)....................... 920 714,227
Bayerische Motoren Werke AG New
(Automobiles)(b).................... 360 266,944
DaimlerChrysler AG
(Automobiles)(b).................... 9,045 893,356
Deutsche Bank AG (Banks (Money
Center))............................ 14,900 877,170
Hoechst AG (Chemicals).............. 13,400 555,946
Mannesmann AG (Machinery
(Diversified))...................... 12,700 1,456,422
Metro AG (Retail (Department
Stores))............................ 17,060 1,362,325
Muenchener
Rueckversicherungs-Gesellschaft AG
(Insurance (Reinsurance))........... 2,444 1,184,200
RWE AG (Oil (International
Integrated))........................ 13,900 761,549
-------------
8,555,742
-------------
GREECE--0.3%
Alpha Credit Bank (Banks (Major
Regional)).......................... 5,000 521,708
HONG KONG--0.7%
Hongkong Electric Holdings Ltd.
(Electric Companies)................ 250,000 758,356
Swire Pacific Ltd. Class B
(Diversified Miscellaneous)......... 1,000,000 664,772
-------------
1,423,128
-------------
HUNGARY--0.6%
Magyar Tavkozlesi Rt Sponsored ADR
(Telecommunications (Long
Distance)).......................... 36,600 1,091,138
INDIA--0.2%
Mahanagar Telephone Nigam Ltd. GDR
(Telephone)......................... 25,000 309,375
INDONESIA--0.2%
PT Indosat (Telecommunications
(Cellular/Wireless))................ 135,000 177,033
<CAPTION>
SHARES VALUE
---------- -------------
<S> <C> <C> <C>
INDONESIA--CONTINUED
PT Indosat ADR (Telecommunications
(Cellular/ Wireless))............... 22,000 $ 268,125
-------------
445,158
-------------
IRELAND--0.4%
Elan Corp. PLC Sponsored ADR (Health
Care (Medical Products &
Supplies))(b)....................... 10,200 709,538
ISRAEL--0.3%
Koor Industries Ltd. (Telephone).... 6,077 530,277
ITALY--2.7%
Istituto Bancario San Paolo di
Torino SPA (Banks (Money Center))... 75,658 1,339,817
Mediolanum SPA (Insurance
(Life/Health))...................... 168,750 1,253,682
Telecom Italia Mobile SPA
(Communications Equipment).......... 197,000 1,457,584
Telecom Italia SPA (Communications
Equipment).......................... 143,500 1,227,096
-------------
5,278,179
-------------
JAPAN--7.5%
77 Bank (The) (Banks (Major
Regional)).......................... 74,000 741,334
Canon, Inc. (Office Equipment &
Supplies)........................... 35,000 749,358
Dai Nippon Printing Co., Ltd.
(Specialty Printing)................ 49,000 782,807
Fuji Photo Film Co.
(Photography/Imaging)............... 21,000 781,938
Hitachi Credit Corp. (Consumer
Finance)............................ 35,000 778,835
Ito-Yokado Co., Ltd. (Retail
(General Merchandise)).............. 15,000 1,050,563
Kao Corp. (Personal Care)........... 35,000 791,247
Kawasumi Laboratories, Inc. (Health
Care (Medical Products &
Supplies)).......................... 38,000 747,895
Kirin Beverage Corp. (Beverages
(Non-Alcoholic)).................... 32,000 632,643
Mabuchi Motor Co., Ltd. (Electronics
(Component Distributors))........... 12,000 920,240
Nippon COMSYS Corp. (Communications
Equipment).......................... 57,000 777,710
Nippon Telegraph & Telephone Corp.
(Telephone)......................... 700 541,151
Rinnai Corp. (Building Materials)... 42,000 735,767
Rohm Co., Ltd (Electronics
(Semiconductors))................... 7,000 638,583
Sanwa Bank Ltd. (The) (Banks (Money
Center))............................ 108,000 833,961
Secom Co., Ltd. (Services
(Commercial & Consumer))............ 11,000 912,793
Shin-Etsu Chemical Co., Ltd.
(Chemicals)......................... 30,000 723,426
Suzuki Motor Corp. (Automobiles).... 65,000 772,186
Takeda Chemical Industries (Health
Care (Drugs-Major
Pharmaceuticals))................... 20,000 771,300
-------------
14,683,737
-------------
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Phoenix-Aberdeen Worldwide Opportunities Fund
<TABLE>
<CAPTION>
SHARES VALUE
---------- -------------
<S> <C> <C> <C>
MALAYSIA--0.2%
Carlsberg Brewery Malaysia Berhad
(Beverages (Alcoholic))(c).......... 100,000 $ 239,035
Malaysian Oxygen Berhad
(Chemicals)(c)...................... 61,000 96,316
-------------
335,351
-------------
MEXICO--1.0%
Cemex SA de C.V. Class B (Building
Materials).......................... 109,500 270,713
Cemex SA de C.V. CPO (Building
Materials).......................... 3,285 7,025
Telefonos de Mexico SA Sponsored ADR
Class L (Telephone)................. 33,500 1,631,031
-------------
1,908,769
-------------
NETHERLANDS--3.9%
AKZO Nobel NV (Chemicals)........... 20,500 933,968
ASM Lithography Holding NV
(Electronics (Semiconductors))(b)... 24,100 737,125
Fortis Amev NV (Insurance
(Multi-Line))....................... 10,400 862,293
Getronics NV (Computers (Software &
Services)).......................... 22,800 1,129,874
Koninklijke Ahold NV (Foods)........ 28,400 1,050,243
Koninklijke KPN NV
(Telecommunications (Cellular/
Wireless)).......................... 14,000 701,242
Royal Dutch Petroleum Co. (Oil
(International Integrated))......... 22,000 1,096,090
Veregnigde Nederlandse
Uitgerersbedrijven NV
(Publishing)........................ 28,500 1,075,202
-------------
7,586,037
-------------
NEW ZEALAND--0.1%
Telecom Corporation of New Zealand
Ltd. (Telecommunications
(Cellular/Wireless))................ 50,000 217,906
PHILIPPINES--0.4%
Ayala Land, Inc. (Real Estate
Development)........................ 500,000 141,392
Philippine Long Distance Telephone
Co. Sponsored ADR (Telephone)....... 22,000 570,625
-------------
712,017
-------------
POLAND--0.3%
Elektrim Spolka Akcyjna SA
(Electrical Equipment).............. 52,800 571,637
SINGAPORE--0.4%
Rothmans Industries Ltd.
(Tobacco)........................... 75,000 450,011
United Overseas Bank Ltd. (Banks
(Money Center))..................... 65,000 417,586
-------------
867,597
-------------
<CAPTION>
SHARES VALUE
---------- -------------
<S> <C> <C> <C>
SOUTH AFRICA--0.4%
Liberty Life Association of Africa
(Insurance (Life/ Health)).......... 26,000 $ 358,004
South African Breweries Ltd.
(Beverages (Alcoholic))............. 25,000 421,156
-------------
779,160
-------------
SOUTH KOREA--0.1%
Pohang Iron & Steel Co. Ltd. (Iron &
Steel).............................. 3,000 191,494
SPAIN--1.9%
Argentaria, Caja Postal y Banco
Hipotecario de Espana SA (Banks
(Major Regional))................... 38,400 995,968
Banco Popular Espanol SA (Banks
(Major Regional))................... 12,600 951,505
Banco Santander SA (Banks (Money
Center))............................ 926 18,430
Iberdrola SA (Electric Companies)... 27,900 522,788
Telefonica SA (Telephone)........... 28,918 1,287,818
-------------
3,776,509
-------------
SWEDEN--2.4%
AssiDoman AB (Paper & Forest
Products)........................... 31,000 489,542
Astra AB Class A (Health Care
(Drugs-Major Pharmaceuticals))...... 40,300 822,851
Forenings Sparbanken AB (Banks
(Major Regional))................... 23,300 603,661
Mandamus AB (Real Estate
Development)(b)..................... 1,165 6,540
Skandia Forsakrings AB (Insurance
(Multi-Line))....................... 70,200 1,073,932
Svenska Handlesbanken Class A (Banks
(Major Regional))................... 17,100 721,507
Telefonaktiebolaget LM Ericsson
Class B (Telecommunications
(Cellular/Wireless))................ 21,400 509,553
Volvo AB Class B (Automobiles)...... 26,000 596,629
-------------
4,824,215
-------------
SWITZERLAND--4.1%
Nestle AG (Foods)................... 210 457,160
Novartis AG (Health Care
(Drugs-Major Pharmaceuticals))...... 1,340 2,634,185
Roche Holding AG (Health Care
(Drugs-Major Pharmaceuticals))...... 120 1,464,310
Schweizerische
Lebensversicherungs-und
Rentenanstalt Bearer (Insurance
(Life/Health))...................... 1,120 831,756
Schweizerische
Rueckersicherungs-Gesellschaft
Registered Shares (Insurance
(Reinsurance))...................... 100 260,725
UBS AG (Banks (Money Center))(b).... 3,100 952,471
Zurich Allied AG Registered Shares
(Insurance (Multi-Line))............ 1,980 1,466,101
-------------
8,066,708
-------------
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Phoenix-Aberdeen Worldwide Opportunities Fund
<TABLE>
<CAPTION>
SHARES VALUE
---------- -------------
<S> <C> <C> <C>
TAIWAN--0.1%
Standard Foods Taiwan Ltd. GDR
(Foods)(b).......................... 16,000 $ 158,000
UNITED KINGDOM--11.8%
3i Group PLC (Investment
Banking/Brokerage).................. 53,700 518,210
BG PLC (Oil & Gas (Exploration &
Production))........................ 65,000 410,150
Bank of Scotland (Banks (Money
Center))............................ 50,000 596,476
Barclays PLC (Banks (Money
Center))............................ 23,000 495,949
Bass PLC (Beverages (Alcoholic)).... 26,000 378,517
Berkeley Group PLC (The) (Real
Estate Development)................. 34,000 248,340
British Aerospace PLC
(Aerospace/Defense)................. 68,000 576,444
British Petroleum Co. PLC (Oil
(International Integrated))......... 76,000 1,134,885
British Telecommunications PLC
(Telecommunications
(Cellular/Wireless))................ 76,000 1,145,001
Cable & Wireless PLC
(Telecommunications
(Cellular/Wireless))................ 68,000 836,098
Compass Group PLC (Foods)........... 76,000 870,605
FirstGroup PLC
(Transportation-Services)........... 57,000 377,926
GKN PLC (Auto Parts & Equipment).... 37,000 490,949
Glaxo Wellcome PLC (Health Care
(Drugs-Major Pharmaceuticals))...... 47,500 1,634,361
Granada Group PLC (Leisure Time
(Products))......................... 29,000 512,662
HSBC Holdings PLC (Banks (Money
Center))............................ 25,700 696,987
Kingfisher PLC (Retail (Department
Stores))............................ 62,500 676,443
Ladbroke Group PLC (Gaming, Lottery
& Parimutuel Companies)............. 75,000 301,358
Legal & General Group PLC (Insurance
(Life/ Health))..................... 50,000 649,302
Lloyds TSB Group PLC (Banks (Money
Center))............................ 69,000 981,565
Logica PLC (Computers (Software &
Services)).......................... 78,000 678,086
National Westminster Bank PLC (Banks
(Money Center))..................... 33,000 636,358
Norwich Union PLC (Insurance
(Life/Health))...................... 56,000 406,935
Reuters Holdings Group PLC (Services
(Commercial & Consumer))............ 44,000 461,940
Rio Tinto PLC (Metals Mining)....... 26,000 302,381
RMC Group PLC (Building
Materials).......................... 32,000 436,584
Safeway PLC (Foods)................. 63,500 319,069
Schroders PLC (Banks (Money
Center))............................ 22,000 401,544
Shell Transport & Trading Co. PLC
(Oil (International Integrated)).... 87,000 534,495
Siebe PLC (Electrical Equipment).... 123,000 485,017
SmithKline Beecham PLC (Health Care
(Drugs-Major Pharmaceuticals))...... 62,120 868,190
<CAPTION>
SHARES VALUE
---------- -------------
<S> <C> <C> <C>
UNITED KINGDOM--CONTINUED
Southern Electric PLC (Electric
Companies).......................... 45,000 $ 508,752
Tesco PLC (Foods)................... 153,000 435,939
Thames Water PLC (Water
Utilities).......................... 19,500 373,109
Unilever PLC (Consumer Products
(Miscellaneous)).................... 44,000 493,420
Vodafone Group PLC
(Telecommunications
(Cellular/Wireless))................ 62,500 1,014,924
Woolwich PLC (Banks (Major
Regional)).......................... 96,000 578,206
Zeneca Group PLC (Health Care
(Drugs-Major Pharmaceuticals))...... 16,300 709,732
-------------
23,176,909
-------------
- ---------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $89,113,142) 101,338,670
- ---------------------------------------------------------------------------
RIGHTS--0.0%
SPAIN--0.0%
Telefonica SA Rights
(Telephone)(b)...................... 28,918 25,716
- ---------------------------------------------------------------------------
TOTAL RIGHTS
(IDENTIFIED COST $0) 25,716
- ---------------------------------------------------------------------------
WARRANTS--0.0%
GERMANY--0.0%
Muenchener
Rueckversicherungs-Gesellschaft AG
Warrants (Insurance
(Reinsurance))(b)................... 94 4,289
- ---------------------------------------------------------------------------
TOTAL WARRANTS
(IDENTIFIED COST $0) 4,289
- ---------------------------------------------------------------------------
FOREIGN PREFERRED STOCKS--0.2%
GERMANY--0.2%
SAP AG Vorzug Pfd. (Computers
(Software & Services)).............. 900 429,704
- ---------------------------------------------------------------------------
TOTAL FOREIGN PREFERRED STOCKS
(IDENTIFIED COST $218,426) 429,704
- ---------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--96.8%
(IDENTIFIED COST $160,252,629) 190,265,810
- ---------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Phoenix-Aberdeen Worldwide Opportunities Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
--------- ---------- -------------
SHORT-TERM OBLIGATIONS--3.7%
<S> <C> <C> <C>
COMMERCIAL PAPER--3.7%
American Home Products Corp. 5.25%,
1/4/99.............................. A-1 $ 3,045 $ 3,043,668
BellSouth Telecommunications, Inc
5.39%, 1/11/99...................... A-1+ 380 379,431
Preferred Receivable Funding Corp.
5.6%, 1/12/99....................... A-1 1,910 1,906,732
Corporate Receivables Corp. 5.58%,
1/19/99............................. A-1+ 1,950 1,944,559
-------------
7,274,390
-------------
- -------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $7,274,390) 7,274,390
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS--100.5%
(IDENTIFIED COST $167,527,019) 197,540,200(a)
Cash and receivables, less liabilities--(0.5%) (987,881)
--------------
NET ASSETS--100.0% $ 196,552,319
--------------
--------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $35,532,679 and gross
depreciation of $5,665,615 for federal income tax purposes. At December 31,
1998, the aggregate cost of securities for federal income tax purpose was
$167,673,136.
(b) Non-income producing.
(c) Security valued at fair value as determined in good faith by or under the
direction of the Trustees.
10 See Notes to Financial Statements
<PAGE>
Phoenix-Aberdeen Worldwide Opportunities Fund
INDUSTRY DIVERSIFICATION
AS A PERCENTAGE OF TOTAL VALUE OF
TOTAL LONG-TERM INVESTMENTS
(UNAUDITED)
<TABLE>
<S> <C>
Aerospace/Defense................................... 0.3%
Aluminum............................................ 0.2
Auto Parts & Equipment.............................. 0.3
Automobiles......................................... 1.7
Banks (Major Regional).............................. 4.5
Banks (Money Center)................................ 4.9
Beverages (Alcoholic)............................... 1.0
Beverages (Non-Alcoholic)........................... 1.0
Broadcasting (Television, Radio & Cable)............ 2.3
Building Materials.................................. 0.8
Chemicals........................................... 1.2
Chemicals (Specialty)............................... 0.3
Communications Equipment............................ 2.2
Computers (Hardware)................................ 1.7
Computers (Networking).............................. 0.7
Computers (Peripherals)............................. 0.8
Computers (Software & Services)..................... 6.8
Consumer Finance.................................... 1.0
Consumer Products (Miscellaneous)................... 0.3
Distributors (Food & Health)........................ 0.7
Diversified Miscellaneous........................... 0.3
Electric Companies.................................. 0.9
Electrical Equipment................................ 1.8
Electronics (Component Distributors)................ 0.5
Electronics (Semiconductors)........................ 3.0
Financial (Diversified)............................. 2.3
Foods............................................... 2.6
Gaming, Lottery & Parimutuel Companies.............. 0.2
Health Care (Diversified)........................... 2.6
Health Care (Drugs - Major Pharmaceuticals)......... 7.8
Health Care (Medical Products & Supplies)........... 2.5
Household Products (Non-Durables)................... 1.0
Insurance (Life/Health)............................. 2.4
Insurance (Multi-Line).............................. 3.4
Insurance (Reinsurance)............................. 0.8
Investment (Banking/Brokerage)...................... 0.8%
Iron & Steel........................................ 0.1
Leisure Time (Products)............................. 0.3
Lodging-Hotels...................................... 0.2
Machinery (Diversified)............................. 1.3
Manufacturing (Diversified)......................... 1.0
Metals Mining....................................... 0.2
Office Equipment & Supplies......................... 0.4
Oil & Gas (Drilling & Equipment).................... 0.5
Oil & Gas (Exploration & Production)................ 0.2
Oil (Domestic Integrated)........................... 0.9
Oil (International Integrated)...................... 3.8
Paper & Forest Products............................. 0.3
Personal Care....................................... 0.4
Photography/Imaging................................. 0.4
Publishing.......................................... 0.6
Real Estate Development............................. 0.2
Retail (Building Supplies).......................... 1.1
Retail (Computers & Electronics).................... 0.2
Retail (Department Stores).......................... 1.8
Retail (Drug Stores)................................ 1.9
Retail (Food Chains)................................ 2.1
Retail (General Merchandise)........................ 0.9
Retail (Specialty).................................. 0.8
Services (Commercial & Consumer).................... 1.0
Specialty Printing.................................. 0.4
Telecommunications (Cellular/Wireless).............. 5.6
Telecommunications (Long Distance).................. 2.1
Telephone........................................... 4.0
Textiles (Apparel).................................. 0.3
Tobacco............................................. 0.2
Transportation-Services............................. 0.2
Waste Management.................................... 0.8
Water Utilities..................................... 0.2
---
100.0%
---
---
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Phoenix-Aberdeen Worldwide Opportunities Fund
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $167,527,019) $ 197,540,200
Cash 2,012
Foreign currency at value (Identified cost $34) 29
Receivables
Investment securities sold 617,995
Fund shares sold 410,267
Tax reclaim 118,021
Dividends and interest 112,360
Prepaid expenses 3,608
--------------
Total assets 198,804,492
--------------
LIABILITIES
Payables
Fund shares repurchased 569,789
Investment securities purchased 1,285,541
Investment advisory fee 120,237
Transfer agent fee 80,877
Distribution fee 46,667
Financial agent fee 13,487
Trustees' fee 7,155
Accrued expenses 128,420
--------------
Total liabilities 2,252,173
--------------
NET ASSETS $ 196,552,319
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 163,537,709
Undistributed net investment loss (763,408)
Accumulated net realized gain 3,757,289
Net unrealized appreciation 30,020,729
--------------
NET ASSETS $ 196,552,319
--------------
--------------
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $185,663,016) 17,777,195
Net asset value per share $10.44
Offering price per share $10.44/(1-4.75%) $10.96
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $10,772,446) 1,075,772
Net asset value and offering price per share $10.01
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $116,857) 11,663
Net asset value and offering price per share $10.02
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1998
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 757,823
Interest 311,224
Foreign taxes withheld (51,885)
--------------
Total investment income 1,017,162
--------------
EXPENSES
Investment advisory fee 693,716
Distribution fee--Class A 218,470
Distribution fee--Class B 51,029
Distribution fee--Class C 44
Financial agent fee 87,352
Transfer agent 159,720
Custodian 72,967
Professional 29,503
Registration 12,381
Trustees 10,792
Printing 10,014
Miscellaneous 14,168
--------------
Total expenses 1,360,156
--------------
NET INVESTMENT LOSS (342,994)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 29,004,321
Net realized gain on foreign currency transactions 50,183
Net change in unrealized appreciation (depreciation) on
investments (21,495,621)
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions 9,794
--------------
NET GAIN ON INVESTMENTS 7,568,677
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 7,225,683
--------------
--------------
</TABLE>
12 See Notes to Financial Statements
<PAGE>
Phoenix-Aberdeen Worldwide Opportunities Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended
December 31, 1998 Year Ended
(Unaudited) June 30, 1998
------------------ --------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (342,994) $ 281,863
Net realized gain (loss) 29,054,504 15,873,450
Net change in unrealized appreciation
(depreciation) (21,485,827) 31,295,703
------------------ --------------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 7,225,683 47,451,016
------------------ --------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income--Class A -- (1,559,972)
Net investment income--Class B -- (82,470)
Net investment income--Class C -- --
Net realized gains--Class A (34,904,401) (16,213,603)
Net realized gains--Class B (2,069,961) (923,384)
Net realized gains--Class C (20,465) --
In excess of net investment
income--Class A -- (334,226)
In excess of net investment
income--Class B -- (17,669)
In excess of net investment
income--Class C -- --
------------------ --------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (36,994,827) (19,131,324)
------------------ --------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(3,844,139 and 1,700,588 shares,
respectively) 44,467,004 19,328,353
Net asset value of shares issued from
reinvestment of distributions
(3,086,327 and 1,716,156 shares,
respectively) 31,171,910 16,423,613
Cost of shares repurchased (3,921,559
and 2,883,240 shares, respectively) (45,183,432) (32,460,031)
------------------ --------------
Total 30,455,482 3,291,935
------------------ --------------
CLASS B
Proceeds from sales of shares (287,212
and 234,656 shares, respectively) 3,235,537 2,624,751
Net asset value of shares issued from
reinvestment of distributions
(177,840 and 100,820 shares,
respectively) 1,723,276 939,638
Cost of shares repurchased (291,189
and 232,300 shares, respectively) (3,265,894) (2,549,881)
------------------ --------------
Total 1,692,919 1,014,508
------------------ --------------
CLASS C
Proceeds from sales of shares (9,551
and 0 shares, respectively ) 109,246 --
Net asset value of shares issued from
reinvestment of distributions
(2,112 and 0 shares, respectively) 20,465 --
Cost of shares repurchased (0 and 0
shares, respectively) -- --
------------------ --------------
Total 129,711 --
------------------ --------------
INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS 32,278,112 4,306,443
------------------ --------------
NET INCREASE IN NET ASSETS 2,508,968 32,626,135
------------------ --------------
NET ASSETS
Beginning of period 194,043,351 161,417,216
------------------ --------------
END OF PERIOD (INCLUDING UNDISTRIBUTED
NET INVESTMENT LOSS OF ($763,408)
AND ($420,414), RESPECTIVELY) $196,552,319 $ 194,043,351
------------------ --------------
------------------ --------------
</TABLE>
See Notes to Financial Statements 13
<PAGE>
Phoenix-Aberdeen Worldwide Opportunities Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED JUNE 30
12/31/98 --------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.40 $ 10.75 $ 10.29 $ 9.04 $ 10.17 $ 8.00
INCOME FROM INVESTMENT OPERATIONS(5)
Net investment income (loss) -- 0.02 0.03(1) (0.02)(1) 0.01(1) 0.01
Net realized and unrealized gain 0.42 2.97 1.25 1.87 0.56 2.19
----- ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS 0.42 2.99 1.28 1.85 0.57 2.20
----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment
income -- (0.13) (0.04) -- -- (0.03)
Dividends from net realized gains (2.38) (1.20) (0.78) (0.60) (1.37) --
In excess of net investment income -- (0.01) -- -- -- --
In excess of net realized gains -- -- -- -- (0.33) --
----- ----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS (2.38) (1.34) (0.82) (0.60) (1.70) (0.03)
----- ----- ----- ----- ----- -----
Change in net asset value (1.96) 1.65 0.46 1.25 (1.13) 2.17
----- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 10.44 $ 12.40 $ 10.75 $ 10.29 $ 9.04 $ 10.17
----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- -----
Total return(2) 4.02%(3) 31.45% 13.40% 21.39% 6.53% 27.46%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $185,663 $183,188 $153,005 $146,052 $126,481 $118,707
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.43%(4) 1.42% 1.53% 1.60% 1.80% 1.50%
Net investment income (loss) (0.33)%(4) 0.21% 0.34% (0.19)% 0.16% 0.09%
Portfolio turnover 83%(3) 156% 234% 245% 277% 259%
</TABLE>
<TABLE>
<CAPTION>
CLASS C
----------
CLASS B FROM
---------------------------------------------------------------------- INCEPTION
SIX MONTHS FROM 12/16/98
ENDED YEAR ENDED JUNE 30 INCEPTION TO
12/31/98 ---------------------------------------- 7/15/94 TO 12/31/98
(UNAUDITED) 1998 1997 1996 06/30/95 (UNAUDITED)
---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.04 $ 10.53 $ 10.14 $ 8.98 $ 10.40 $ 11.62
INCOME FROM INVESTMENT OPERATIONS(5)
Net investment income (loss) (0.05) (0.06) (0.03)(1) (0.08)(1) (0.02)(1) --
Net realized and unrealized gain 0.40 2.90 1.21 1.84 0.30 0.78
----- ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS 0.35 2.84 1.18 1.76 0.28 0.78
----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment
income -- (0.11) (0.01) -- -- --
Dividends from net realized gains (2.38) (1.20) (0.78) (0.60) (1.37) (2.38)
In excess of net investment income -- (0.02) -- -- -- --
In excess of net realized gains -- -- -- -- (0.33) --
----- ----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS (2.38) (1.33) (0.79) (0.60) (1.70) (2.38)
----- ----- ----- ----- ----- -----
Change in net asset value (2.03) 1.51 0.39 1.16 (1.42) (1.60)
----- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 10.01 $ 12.04 $ 10.53 $ 10.14 $ 8.98 $ 10.02
----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- -----
Total return(2) 3.54%(3) 30.61% 12.46% 20.50% 3.54%(3) 7.39%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $10,772 $10,855 $8,412 $5,709 $2,849 $117
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.18%(4) 2.17% 2.29% 2.34% 2.61%(4) 1.91%(4)
Net investment income (loss) (1.08)%(4) (0.54)% (0.35)% (0.86)% (0.33)%(4) (0.84)%(4)
Portfolio turnover 83%(3) 156% 234% 245% 277% 83%(3)
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charges are not reflected in the total return calculation.
(3) Not annualized.
(4) Annualized.
(5) 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.
14
See Notes to Financial Statements
<PAGE>
PHOENIX-ABERDEEN WORLDWIDE OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix-Aberdeen 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, Class
B and Class C 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. Class C shares are sold with a 1% contingent deferred sales charge if
redeemed within one year of purchase. Each class of shares has 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 each class 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 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.
15
<PAGE>
PHOENIX-ABERDEEN WORLDWIDE OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 (UNAUDITED) (CONTINUED)
2. INVESTMENT ADVISORY FEES AND RELATED PARTY TRANSACTIONS
As compensation for their services to the Fund, the adviser, Phoenix
Investment Counsel, Inc. ("PIC"), 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 up to $1
billion, 0.70% between $1 billion and $2 billion, and 0.65% in excess of $2
billion.
Effective October 27, 1998, Aberdeen Fund Managers, Inc. ("Aberdeen") was
appointed subadviser to the Phoenix-Aberdeen Worldwide Opportunities Fund.
Aberdeen is a subsidiary of Aberdeen Asset Management PLC. For its services,
Aberdeen is paid a fee by the Adviser equal to 0.375% of the average daily net
assets of the Phoenix-Aberdeen Worldwide Opportunities Fund up to $1 billion,
0.35% between $1 billion and $2 billion, and 0.325% in excess of $2 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 $5,438 for Class A shares and deferred sales
charges of $19,588 for Class B shares for the six months ended December 31,
1998. 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 and Class C 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,
1998, approximately $105,246 was retained by the Distributor, $157,466 was paid
to unaffiliated participants and $6,831 was paid to W.S. Griffith, an indirect
subsidiary of PHL.
As Financial Agent of the Fund, PEPCO receives a financial agent fee equal to
the sum of (1) the documented cost of fund accounting and related services
provided by PFPC, Inc. (subagent to PEPCO), plus (2) the documented cost to
PEPCO to provide financial reporting, tax services and oversight of subagent's
performance. The current fee schedule of PFPC, Inc. ranges from 0.085% to
0.0125% of the average daily net asset values of the Fund. Certain minimum fees
and fee waivers 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, 1998,
transfer agent fees were $159,720 of which PEPCO retained $58,360 which is net
of the fees paid to State Street.
At December 31, 1998, PHL and affiliates held 241 Class A shares and 2 Class B
shares of the Fund with a combined value of $2,534.
3. PURCHASE AND SALE OF SECURITIES
Portfolio purchases and sales of investments, excluding short-term securities,
for the six months ended December 31, 1998 aggregated $143,043,602 and
$152,828,833 respectively. There were no purchases or sales of long-term U.S.
Government securities.
4. 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.
This report is not authorized for distribution to prospective investors in
the Phoenix-Aberdeen Worldwide Opportunities Fund unless preceded or accompanied
by an effective prospectus which includes information concerning the sales
charge, the Fund's record and other pertinent information.
16
<PAGE>
RESULTS OF SHAREHOLDER MEETING (UNAUDITED)
A special meeting of Shareholders of the Phoenix-Aberdeen Worldwide
Opportunities Fund was held on October 27, 1998 to approve the following matter:
1. Approval of a subadvisory agreement with Aberdeen Fund Managers, Inc.
On the record date for this meeting there were 8,573,602 shares outstanding and
55.06% of the shares outstanding and entitled to vote were present by proxy.
NUMBER OF VOTES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--------- --------- ---------
<S> <C> <C> <C>
1. Approval of investment subadvisory
agreement 7,795,689 301,860 476,053
</TABLE>
17
<PAGE>
PHOENIX-ABERDEEN WORLDWIDE OPPORTUNITIES FUND
101 Munson Street
Greenfield, Massachusetts 01301
TRUSTEES
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
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
OFFICERS
Philip R. McLoughlin, President
Michael E. Haylon, Executive Vice President
John F. Sharry, Executive Vice President
William E. Keen, III, Vice President
William R. Moyer, Vice President
Leonard J. Saltiel, Vice President
Pierre G. Trinque, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
INVESTMENT ADVISER
Phoenix Investment Counsel, Inc.
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
HOW TO CONTACT US
Toll-Free Numbers
The Fund Connection 1-800-243-1574
Customer Service 1-800-243-1574 (option 0)
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
World Wide Web address:
WWW.PHOENIXINVESTMENTS.COM
<PAGE>
PHOENIX EQUITY PLANNING CORPORATION PRSRT STD
PO Box 2200 U.S. Postage
Enfield CT 06083-2200 PAID
Springfield, MA
[LOGO] PHOENIX Permit No. 444
INVESTMENT PARTNERS
PXP 682 (2/99)
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