<PAGE>
Phoenix Investment Partners
Semiannual Report
October 31, 1999
Goodwin
Phoenix-Goodwin
California Tax
Exempt Bonds, Inc.
[LOGO] PHOENIX
INVESTMENT PARTNERS
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
We are pleased to provide this semiannual financial summary for the
Phoenix-Goodwin California Tax Exempt Bonds, Inc. Fund for the six months ended
October 31, 1999.
If you have any questions, please call your financial advisor or a customer
service representative at 1-800-243-1574 between 8:00 a.m. and 6:00 p.m. Eastern
Time, Monday through Friday.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
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.
1
<PAGE>
Phoenix-Goodwin California Tax Exempt Bonds, Inc.
INVESTMENTS AT OCTOBER 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ------- --------------------
<S> <C> <C> <C>
MUNICIPAL TAX-EXEMPT BONDS--97.7%
AIRPORT REVENUE--3.8%
San Francisco Airport Revenue 6.25%,
5/1/10 (FGIC Insured)................... AAA $ 1,000 $ 1,058,750
San Francisco Airport Revenue 4.50%,
5/1/28 (MBIA Insured)................... AAA 2,720 2,128,400
--------------------
3,187,150
--------------------
DEVELOPMENT REVENUE--4.4%
Culver City Redevelopment Financing
Authority Revenue 4.60%, 11/1/20 (AMBAC
Insured)................................ AAA 4,500 3,723,750
GENERAL OBLIGATION--13.3%
California State G.O. 5.50%, 4/1/08
(MBIA Insured).......................... AAA 1,500 1,567,500
California State G.O. 4.50%, 12/1/21
(FGIC Insured).......................... AAA 3,000 2,411,250
Central School District San Bernardino
County Series A G.O. 7.05%, 5/1/16...... A(b) 1,000 1,052,500
Redwood City California Elementary
School District 5%, 8/1/15 (FGIC
Insured)................................ AAA 3,875 3,584,375
Walnut Valley Unified School District
Series A G.O. 0%, 8/1/19 (MBIA
Insured)................................ AAA 8,480 2,533,400
--------------------
11,149,025
--------------------
GENERAL REVENUE--6.1%
Anaheim Public Financing Series C 6%,
9/1/16 (FSA Insured).................... AAA 2,600 2,704,000
Orange County Recovery COP Series A
5.80%, 7/1/16 (MBIA Insured)............ AAA 1,500 1,515,000
San Mateo County Lease Revenue 5.125%,
7/1/18 (MBIA Insured)................... AAA 1,000 920,000
--------------------
5,139,000
--------------------
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ------- --------------------
<S> <C> <C> <C>
MEDICAL REVENUE--3.6%
California Health Facilities Financing
Authority 7.30%, 11/1/20 (CA Mortgage
Insured)................................ AA- $ 1,400 $ 1,456,952
California Health Facilities Financing
Authority 6.25%, 7/1/22................. AA- 1,500 1,526,250
--------------------
2,983,202
--------------------
MULTIFAMILY REVENUE--2.5%
L.A. Community Redevelopment Agency
Series A 6.55%, 1/1/27 (AMBAC/FHA
Insured)................................ AAA 2,000 2,072,500
MUNICIPAL UTILITY DISTRICT REVENUE--10.2%
Delta Diablo Sanitation District COP 0%,
12/1/16 (MBIA Insured).................. AAA 1,070 395,900
L.A. Wastewater System Revenue Series D
4.70%, 11/1/17 (FGIC Insured)........... AAA 7,000 6,063,750
Sacramento Cogeneration Authority
Project Revenue 6.375%, 7/1/10.......... BBB 500 523,125
Sacramento Municipal Utility District
Electric Revenue Series K 5.75%, 7/1/18
(AMBAC Insured)......................... AAA 1,500 1,505,625
--------------------
8,488,400
--------------------
POWER REVENUE--1.0%
Southern California Public Power
Authority Revenue 5.50%, 7/1/20......... A 915 865,819
PRE-REFUNDED--42.2%
Covina Community Redevelopment Agency
8.80%, 1/1/08(c)........................ NR 1,150 1,332,562
Hayward Hospital Revenue (St. Rose
Hospital) 10%, 10/1/04(c)............... AAA 370 415,787
Huntington Park Redevelopment Agency 8%,
12/1/19(c).............................. AAA 2,400 3,066,000
L.A. Harbor Department 7.60%,
10/1/18(c).............................. AAA 1,075 1,271,188
MSR Public Power Agency Series D 6.75%
7/1/20 (MBIA Insured)(c)................ AAA 3,500 3,836,875
</TABLE>
2 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin California Tax Exempt Bonds, Inc.
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ------- --------------------
<S> <C> <C> <C>
PRE-REFUNDED--CONTINUED
Northern California Power Agency Public
Power Hydro Electric 7.50%, 7/1/23
(AMBAC Insured)......................... AAA $ 195 $ 234,975
Orange County Water District COP 7%,
8/15/15................................. AAA 1,000 1,045,000
Pasedena COP 6.75%, 8/1/15.............. AAA(b) 2,000 2,083,920
Pomona Unified School District G.O.
Series C 5.60%, 8/1/12 (MBIA
Insured)(c)............................. AAA 1,500 1,533,750
Puerto Rico Electric Power Authority
Series P 7%, 7/1/21..................... BBB+ 2,500 2,668,750
Puerto Rico Highway and Transportation
Authority Revenue Series T 6.625%,
7/1/18.................................. AAA 200 215,000
Puerto Rico Highway and Transportation
Authority Revenue Series T 6.625%,
7/1/18.................................. A 800 860,000
Puerto Rico Public Building Authority
Series L 6.875%, 7/1/21................. AAA 3,170 3,427,563
Redlands COP Series C 7%, 12/1/22 (MBIA
Insured)................................ AAA 1,000 1,053,740
Riverside County 8.625%, 5/1/16 (GNMA
Collaterized)(c)........................ AAA 700 924,000
Riverside County 7.80%, 5/1/21 (GNMA
Collaterized)(c)........................ AAA 4,000 4,980,000
Sacramento Cogeneration Authority
Project Revenue 6.375%, 7/1/10.......... NR 500 553,750
San Bernandino County COP Series B 7%,
8/1/28.................................. AAA 2,200 2,351,250
San Bernandino School Health Care
Sisters of Charity Series A 7%,
7/1/21.................................. AA 1,500 1,599,375
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ------- --------------------
<S> <C> <C> <C>
PRE-REFUNDED--CONTINUED
Torrance Hospital Revenue 7.10%,
12/1/15................................. AAA $ 1,665 $ 1,800,281
--------------------
35,253,766
--------------------
SPECIAL OBLIGATION REVENUE--1.2%
Sacramento Flood Control Agency 5.375%,
10/1/15 (FGIC Insured).................. AAA 1,000 972,500
WATER REVENUE--9.4%
Chino Basin Financing Authority Revenue
5.90%, 8/1/11 (AMBAC Insured)........... AAA 2,000 2,120,000
Contra Costa Water District Revenue
Series G 5.75%, 10/1/14 (MBIA Insured).. AAA 3,100 3,142,625
Long Beach California Water Revenue
Series A 5%, 5/1/24 (MBIA Insured)...... AAA 2,000 1,740,000
Metropolitan Water District Waterworks
Revenue Series A 4.75%, 7/1/22.......... AA 1,000 837,500
--------------------
7,840,125
--------------------
- ----------------------------------------------------------------------------------
TOTAL MUNICIPAL TAX-EXEMPT BONDS
(IDENTIFIED COST $80,634,023) 81,675,237
- ----------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--97.7%
(IDENTIFIED COST $80,634,023) 81,675,237
- ----------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS--0.5%
COMMERCIAL PAPER--0.5%
Koch Industries, Inc. 5.34%, 11/1/99.... A-1+ 425 424,874
- ----------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $425,000) 424,874
- ----------------------------------------------------------------------------------
TOTAL INVESTMENTS--98.2%
(IDENTIFIED COST $81,059,023) 82,100,111(a)
Cash and receivables, less liabilities--1.8% 1,467,520
--------------------
NET ASSETS--100.0% $ 83,567,631
====================
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $3,026,016 and gross
depreciation of $1,984,928 for federal income tax purposes. At October 31,
1999, the aggregate cost of securities for federal income tax purposes was
$81,059,023.
(b) As rated by Moody's, Duff & Phelps or Fitch.
(c) Escrowed to Maturity.
At October 31, 1999, the concentration of the Fund's investments by State,
determined as a percentage of total investments, is as follows: California
91% and Puerto Rico 9%.
At October 31, 1999, 64.8% of the securities in the portfolio are backed by
insurance of financial institutions and financial guaranty assurance
agencies. Insurers with a concentration greater than 10% of net assets are
as follows: MBIA, 24%, AMBAC, 12% and FGIC, 17%.
See Notes to Financial Statements
3
<PAGE>
Phoenix-Goodwin California Tax Exempt Bonds, Inc.
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $81,059,023) $ 82,100,111
Cash 108
Receivables
Interest 1,657,636
Fund shares sold 42,111
Prepaid expenses 1,767
-------------
Total assets 83,801,733
-------------
LIABILITIES
Payables
Fund shares repurchased 1,650
Dividend distributions 69,914
Investment advisory fee 32,451
Transfer agent fee 23,683
Distribution fee 19,165
Financial agent fee 6,504
Trustees' fee 5,633
Accrued expenses 75,102
-------------
Total liabilities 234,102
-------------
NET ASSETS $ 83,567,631
=============
NET ASSETS CONSIST OF:
Capital paid in on shares of common stock $ 81,565,756
Undistributed net investment loss (69,433)
Accumulated net realized gain 1,030,220
Net unrealized appreciation 1,041,088
-------------
NET ASSETS $ 83,567,631
=============
CLASS A
Shares of common stock outstanding, $0.01 par value,
250,000,000 shares authorized (Net Assets $81,813,904) 6,679,250
Net asset value per share $12.25
Offering price per share $12.25/(1-4.75%) $12.86
CLASS B
Shares of common stock outstanding, $0.01 par value,
250,000,000 shares authorized (Net Assets $1,753,727) 142,987
Net asset value and offering price per share $12.26
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 2,665,354
-------------
Total investment income 2,665,354
-------------
EXPENSES
Investment advisory fee 205,925
Distribution fee, Class A 112,120
Distribution fee, Class B 9,130
Financial agent fee 51,896
Transfer agent 55,189
Printing 27,516
Professional 16,201
Registration 11,959
Trustees 8,469
Custodian 5,438
Miscellaneous 10,541
-------------
Total expenses 514,384
-------------
NET INVESTMENT INCOME 2,150,970
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 210,522
Net change in unrealized appreciation (depreciation) on
investments (6,910,474)
-------------
NET LOSS ON INVESTMENTS (6,699,952)
-------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (4,548,982)
=============
</TABLE>
4 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin California Tax Exempt Bonds, Inc.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
10/31/99 Year Ended
(Unaudited) 4/30/99
------------- -------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 2,150,970 $ 4,764,567
Net realized gain (loss) 210,522 997,780
Net change in unrealized appreciation
(depreciation) (6,910,474) 112,639
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (4,548,982) 5,874,986
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (2,131,631) (4,660,039)
Net investment income, Class B (36,363) (69,380)
Net realized gains, Class A -- (495,087)
Net realized gains, Class B -- (8,845)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (2,167,994) (5,233,351)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (134,614
and 951,723 shares, respectively) 1,727,556 12,621,925
Net asset value of shares issued from
reinvestment of distributions
(70,928 and 172,258 shares,
respectively) 896,252 2,289,980
Cost of shares repurchased (749,851
and 1,701,261 shares, respectively) (9,457,572) (22,628,530)
------------ ------------
Total (6,833,764) (7,716,625)
------------ ------------
CLASS B
Proceeds from sales of shares (19,479
and 28,783 shares, respectively) 246,987 382,076
Net asset value of shares issued from
reinvestment of distributions
(1,428 and 3,219 shares,
respectively) 18,096 42,838
Cost of shares repurchased (21,655 and
7,282 shares, respectively) (274,284) (97,065)
------------ ------------
Total (9,201) 327,849
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (6,842,965) (7,388,776)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (13,559,941) (6,747,141)
NET ASSETS
Beginning of period 97,127,572 103,874,713
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) AND
DISTRIBUTIONS IN EXCESS OF NET
INVESTMENT INCOME
OF ($69,433) AND ($52,409),
RESPECTIVELY] $ 83,567,631 $ 97,127,572
============ ============
</TABLE>
See Notes to Financial Statements 5
<PAGE>
Phoenix-Goodwin California Tax Exempt Bonds, Inc.
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED APRIL 30
10/31/99 ---------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.18 $13.12 $12.72 $12.77 $12.63 $13.03
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.30 0.64 0.65 0.66 0.67 0.71
Net realized and unrealized gain
(loss) (0.93) 0.11 0.47 0.04 0.20 0.05
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS (0.63) 0.75 1.12 0.70 0.87 0.76
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.30) (0.63) (0.65) (0.66) (0.67) (0.76)
Distributions in excess of net
investment income -- -- -- -- (0.01) --
Distributions from net realized gains -- (0.06) (0.07) (0.09) (0.03) (0.31)
Distributions in excess of accumulated
net realized gains -- -- -- -- (0.02) (0.09)
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (0.30) (0.69) (0.72) (0.75) (0.73) (1.16)
------ ------ ------ ------ ------ ------
Change in net asset value (0.93) 0.06 0.40 (0.05) 0.14 (0.40)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $12.25 $13.18 $13.12 $12.72 $12.77 $12.63
====== ====== ====== ====== ====== ======
Total return(1) (4.83)%(3) 5.92% 8.84% 5.56% 6.92% 6.34%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $81,814 $95,230 $102,312 $109,358 $113,806 $117,370
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.11%(2) 1.00% 0.96% 0.93% 0.99% 0.93%
Net investment income 4.70%(2) 4.72% 4.90% 5.13% 5.15% 5.63%
Portfolio turnover 6%(3) 14% 9% 17% 20% 51%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED APRIL 30 INCEPTION
10/31/99 ------------------------------------- 7/26/94 TO
(UNAUDITED) 1999 1998 1997 1996 4/30/95
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.20 $13.13 $12.73 $12.77 $12.63 $13.04
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.25 0.54 0.56 0.56 0.56(4) 0.48
Net realized and unrealized gain
(loss) (0.94) 0.12 0.46 0.05 0.20 0.01
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS (0.69) 0.66 1.02 0.61 0.76 0.49
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.25) (0.53) (0.55) (0.56) (0.56) (0.50)
Distributions in excess of net
investment income -- -- -- -- (0.01) --
Distributions from net realized gains -- (0.06) (0.07) (0.09) (0.03) (0.31)
Distributions in excess of accumulated
net realized gains -- -- -- -- (0.02) (0.09)
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (0.25) (0.59) (0.62) (0.65) (0.62) (0.90)
------ ------ ------ ------ ------ ------
Change in net asset value (0.94) 0.07 0.40 (0.04) 0.14 (0.41)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $12.26 $13.20 $13.13 $12.73 $12.77 $12.63
====== ====== ====== ====== ====== ======
Total return(1) (5.18)%(3) 5.11% 8.10% 4.84% 6.10% 4.10%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,754 $1,897 $1,562 $1,359 $1,258 $460
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.85%(2) 1.75% 1.71% 1.68% 1.78% 1.55%(2)
Net investment income 3.95%(2) 3.97% 4.15% 4.37% 4.32% 4.90%(2)
Portfolio turnover 6%(3) 14% 9% 17% 20% 51%
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized
(3) Not annualized
(4) Computed using average shares outstanding.
See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN CALIFORNIA TAX EXEMPT BONDS, INC.
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1999 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix-Goodwin California Tax Exempt Bonds, Inc. (the "Fund") is organized as
a Maryland corporation 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 to obtain a high level of current income exempt
from California state and local income taxes, as well as Federal income tax,
consistent with preservation of capital. 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 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:
Debt securities are valued on the basis of broker quotations or valuations
provided by a pricing service which utilizes information with respect to recent
sales, market transactions in comparable securities, quotations from dealers,
and various relationships between securities in determining value. 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 Directors.
B. SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are recorded on the trade date. Interest income is
recorded on the accrual basis. Premiums and discounts are amortized to income
using the effective interest method. Realized gains and losses are determined 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 and tax-exempt 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 declared and recorded daily. 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 and losses deferred due to wash sales and excise tax
regulations. Permanent book and tax basis differences relating to shareholder
distributions will result in reclassification to paid in capital.
E. FUTURES CONTRACTS:
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. The Fund may enter into financial
futures contracts as a hedge against anticipated changes in the market value of
the portfolio securities. Upon entering into a futures contract, the Fund is
required to pledge to the broker an amount of cash and/or securities equal to
the "initial margin" requirements of the futures exchange on which the contract
is traded. Pursuant to the contract, the Fund agrees to receive from or pay to
the broker an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as variation margin and are
recorded by the Fund as unrealized gains or losses. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed. The potential risk to the Fund is that the change in value of the
futures contract may not correspond to the change in value of the hedged
instruments.
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
Effective June 1, 1998, National Securities and Research Corporation assigned
its investment advisory agreement to Phoenix Investment Counsel, Inc. ("PIC"),
an indirect majority-owned subsidiary of Phoenix Home Life Mutual Insurance
Company ("PHL"). PIC is entitled to a fee at an annual rate of 0.45% 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 $3,935 for Class A shares and deferred sales
charges of $4,469 for Class B shares for the six months ended October 31, 1999.
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 Distributor has advised the Fund that of the total amount
expensed for the six months ended October 31, 1999, $14,647 was earned by the
Distributor, $106,581 was paid to unaffiliated participants and $22 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
7
<PAGE>
PHOENIX-GOODWIN CALIFORNIA TAX EXEMPT BONDS, INC.
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1999 (UNAUDITED) (CONTINUED)
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 as
sub-transfer agent. For the six months ended October 31, 1999, transfer agent
fees were $55,189, of which PEPCO retained $9,720, which is net of fees paid to
State Street.
At October 31, 1999, PHL and affiliates held 232 Class A shares and 10,623
Class B shares of the Fund with a combined value of $133,080.
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities, excluding short-term securities and
futures, for the six months ended October 31, 1999, aggregated $5,702,335 and
$11,543,445, respectively. There were no purchases or sales of long-term US
Government securities.
4. ASSET CONCENTRATION
There are certain risks arising from the Fund's concentration in California
municipal securities. Certain California constitutional amendments, legislative
measures, executive orders, administrative regulations, court decisions and
voter initiatives could result in certain adverse consequences including
impairing the ability of certain issuers of California municipal securities to
pay principal and interest on their obligations.
This report is not authorized for distribution to prospective investors in the
Phoenix-Goodwin California Tax Exempt Bonds, Inc. unless preceded or accompanied
by an effective Prospectus which includes information concerning the sales
charge, Fund's record and other pertinent information.
8
<PAGE>
RESULTS OF SHAREHOLDER MEETING (UNAUDITED)
A special meeting of Shareholders of the Phoenix-Goodwin California Tax Exempt
Bonds, Inc. was held on August 11, 1999 to approve the following matter:
1. Approval of a change in the name of the Fund to Phoenix-Goodwin
California Tax Exempt Bonds, Inc.
On the record date for this meeting there were 7,290,829 shares outstanding and
69.68% of the shares outstanding and entitled to vote were present by proxy.
NUMBER OF VOTES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
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<S> <C> <C> <C>
1. Approval of name change 4,744,198 83,918 252,393
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PHOENIX-GOODWIN CALIFORNIA TAX EXEMPT BONDS, INC.
101 Munson Street
Greenfield, Massachusetts 01301
DIRECTORS
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
William R. Moyer, Executive Vice President
John F. Sharry, Executive Vice President
James D. Wehr, Senior Vice President
Timothy M. Heaney, Vice President
Michael Kearney, 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
State Street Bank and Trust Company
P.O. Box 351
Boston, Massachusetts 02101
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
160 Federal Street
Boston, Massachusetts 02110
HOW TO CONTACT US
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
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Phoenix Equity Planning Corporation
PO Box 2200
Enfield CT 06083-2200
[LOGO] PHOENIX
INVESTMENT PARTNERS
PRSRT STD
U.S. Postage
PAID
Andrews
Associates
PXP 680 (12/99)
