<PAGE>
Phoenix Investment Partners
SEMIANNUAL REPORT
OCTOBER 31, 2000
GOODWIN
Phoenix-Goodwin
California Tax
Exempt Bond
Fund
[PHOENIX LOGO]
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
We are pleased to provide this semiannual financial summary for the
Phoenix-Goodwin California Tax Exempt Bond Fund for the six months ended October
31, 2000.
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
OCTOBER 31, 2000
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 BOND FUND
INVESTMENTS AT OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
MUNICIPAL TAX-EXEMPT BONDS--96.1%
AIRPORT REVENUE--4.3%
San Francisco Airport 6.25%, 5/1/10
(FGIC Insured).......................... AAA $1,000 $ 1,065,750
San Francisco Airport 4.50%, 5/1/28
(MBIA Insured).......................... AAA 2,720 2,319,616
-----------
3,385,366
-----------
DEVELOPMENT REVENUE--5.1%
Culver City Redevelopment Financing
Authority 4.60%, 11/1/20 (AMBAC
Insured)................................ AAA 4,500 4,016,880
EDUCATION REVENUE--2.5%
California Educational Facilities
Authority Series N 5.20%, 12/1/27....... AAA 2,000 1,940,840
GENERAL OBLIGATION--15.2%
California State 5.50%, 4/1/08 (MBIA
Insured)................................ AAA 1,500 1,606,350
California State 4.50%, 12/1/21 (FGIC
Insured)................................ AAA 3,000 2,620,350
Central School District San Bernardino
County Series A 7.05%, 5/1/16(b)........ A 1,000 1,028,090
Redwood City Elementary School District
5%, 8/1/15 (FGIC Insured)............... AAA 3,875 3,922,430
Walnut Valley Unified School District
Series A 0%, 8/1/19 (MBIA Insured)...... AAA 8,480 2,697,912
-----------
11,875,132
-----------
GENERAL REVENUE--8.8%
Anaheim Public Financing Series C 6%,
9/1/16 (FSA Insured).................... AAA 2,600 2,872,532
Orange County Recovery COP Series A
5.80%, 7/1/16 (MBIA Insured)............ AAA 1,500 1,571,670
Pomona Public Financing Authority 5%,
2/1/30 (MBIA Insured)................... AAA 1,550 1,444,368
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
GENERAL REVENUE--CONTINUED
San Mateo County 5.125%, 7/1/18 (MBIA
Insured)................................ AAA $1,000 $ 1,000,410
-----------
6,888,980
-----------
MEDICAL REVENUE--3.8%
California Health Facilities Financing
Authority 7.30%, 11/1/20 (CA Mortgage
Insured)................................ AA 1,400 1,431,360
California Health Facilities Financing
Authority 6.25%, 7/1/22................. AA 1,500 1,541,715
-----------
2,973,075
-----------
MULTIFAMILY REVENUE--2.7%
L.A. Community Redevelopment Agency
Series A 6.55%, 1/1/27 (AMBAC/FHA
Insured)................................ AAA 2,000 2,094,840
MUNICIPAL UTILITY DISTRICT REVENUE--11.1%
Delta Diablo Sanitation District COP 0%,
12/1/16 (MBIA Insured).................. AAA 1,070 452,952
L.A. Wastewater System Series D 4.70%,
11/1/17 (FGIC Insured).................. AAA 7,000 6,584,410
Sacramento Municipal Utility District
Electric Series K 5.75%, 7/1/18 (AMBAC
Insured)................................ AAA 1,500 1,608,810
-----------
8,646,172
-----------
POWER REVENUE--3.2%
Northern California Power Agency Series
A 5.20%, 7/1/32 (MBIA Insured).......... AAA 1,120 1,068,390
Sacramento Cogeneration Authority
Project 6.375%, 7/1/10.................. BBB 500 531,245
Southern California Public Power
Authority 5.50%, 7/1/20................. A 915 906,189
-----------
2,505,824
-----------
PRE-REFUNDED--33.0%
Covina Community Redevelopment Agency
8.80%, 1/1/08(c)........................ NR 1,095 1,285,880
</TABLE>
2 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin California Tax Exempt Bond Fund
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
PRE-REFUNDED--CONTINUED
Hayward Hospital (St. Rose Hospital)
10%, 10/1/04(c)......................... AAA $ 300 $ 337,512
Huntington Park Redevelopment Agency 8%,
12/1/19(c).............................. AAA 2,400 3,182,736
L.A. Harbor Department 7.60%,
10/1/18(c).............................. AAA 1,075 1,368,970
MSR Public Power Agency Series D 6.75%
7/1/20 (MBIA Insured)(c)................ AAA 3,500 4,040,050
Northern California Power Agency 7.50%,
7/1/23, Prerefunded 7/1/21 @$100 (AMBAC
Insured)................................ AAA 195 243,653
Pomona Unified School District G.O.
Series C 5.60%, 8/1/12 (MBIA
Insured)(c)............................. AAA 1,500 1,608,960
Puerto Rico Electric Power Authority
Series P 7%, 7/1/21, Prerefunded 7/1/01
@$102................................... AAA 1,500 1,560,705
Puerto Rico Highway and Transportation
Authority Series T 6.625%, 7/1/18,
Prerefunded 7/1/02 @$101 1/2............ AAA 200 210,952
Puerto Rico Highway and Transportation
Authority Series T 6.625%, 7/1/18,
Prerefunded 7/1/02 @$101 1/2............ Aaa(b) 800 843,808
Puerto Rico Public Building Authority
Series L 6.875%, 7/1/21, Prerefunded
7/1/02 @$101 1/2........................ AAA 1,670 1,768,096
Redlands COP Series C 7%, 12/1/22,
Prerefunded 12/1/00 @$102 (MBIA
Insured)................................ AAA 1,000 1,022,420
Riverside County Series B 8.625%, 5/1/16
(GNMA Collateralized)(c)................ AAA 700 945,686
Riverside County 7.80%, 5/1/21 (GNMA
Collateralized)(c)...................... AAA 4,000 5,105,880
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
PRE-REFUNDED--CONTINUED
Sacramento Cogeneration Authority
Project 6.375%, 7/1/10, Prerefunded
7/1/05 @$102............................ AAA $ 500 $ 554,480
Torrance Hospital 7.10%, 12/1/15,
Prerefunded 12/1/05 @$100............... AAA 1,615 1,764,274
-----------
25,844,062
-----------
WATER REVENUE--6.4%
Chino Basin Financing Authority 5.90%,
8/1/11 (AMBAC Insured).................. AAA 2,000 2,217,600
Long Beach Water Series A 5%, 5/1/24
(MBIA Insured).......................... AAA 2,000 1,884,100
Metropolitan Water District Waterworks
Series A 4.75%, 7/1/22.................. AA 1,000 898,570
-----------
5,000,270
-----------
------------------------------------------------------------------------
TOTAL MUNICIPAL TAX-EXEMPT BONDS
(IDENTIFIED COST $71,461,680) 75,171,441
------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--96.1%
(IDENTIFIED COST $71,461,680) 75,171,441
------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS--2.1%
COMMERCIAL PAPER--2.1%
Koch Industries, Inc. 6.62%, 11/1/00.... A-1+ 1,650 1,650,000
------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $1,650,000) 1,650,000
------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--98.2%
(IDENTIFIED COST $73,111,680) 76,821,441(a)
Cash and receivables, less liabilities--1.8% 1,387,967
-----------
NET ASSETS--100.0% $78,209,408
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $4,434,321 and gross
depreciation of $724,560 for federal income tax purposes. At October 31,
2000, the aggregate cost of securities for federal income tax purposes was
$73,111,680.
(b) As rated by Moodys, Duff & Phelps or Fitch.
(c) Escrowed to Maturity.
At October 31, 2000, the concentration of the Fund's investments by State,
determined as a percentage of total investments, is as follows: California
94% and Puerto Rico 6%.
At October 31, 2000, 70.9% 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, 26%, AMBAC, 13% and FGIC, 18%.
See Notes to Financial Statements 3
<PAGE>
Phoenix-Goodwin California Tax Exempt Bond Fund
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $73,111,680) $ 76,821,441
Cash 2,868
Receivables
Interest 1,668,576
Prepaid expenses 702
--------------
Total assets 78,493,587
--------------
LIABILITIES
Payables
Fund shares repurchased 92,692
Dividend distributions 61,520
Investment advisory fee 29,779
Distribution fee 17,443
Transfer agent fee 16,484
Trustees' fee 13,236
Financial agent fee 5,903
Accrued expenses 47,122
--------------
Total liabilities 284,179
--------------
NET ASSETS $ 78,209,408
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of common stock $ 74,064,922
Undistributed net investment loss (70,718)
Accumulated net realized gain 505,443
Net unrealized appreciation 3,709,761
--------------
NET ASSETS $ 78,209,408
==============
CLASS A
Shares of common stock outstanding, $0.01 par value,
250,000,000 shares authorized (Net Assets $76,795,477) 6,093,750
Net asset value per share $12.60
Offering price per share $12.60/(1-4.75%) $13.23
CLASS B
Shares of common stock outstanding, $0.01 par value,
250,000,000 shares authorized (Net Assets $1,413,931) 112,047
Net asset value and offering price per share $12.62
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 2,297,051
--------------
Total investment income 2,297,051
--------------
EXPENSES
Investment advisory fee 177,303
Distribution fee, Class A 96,522
Distribution fee, Class B 7,919
Financial agent fee 50,357
Transfer agent 29,808
Printing 24,361
Professional 10,447
Trustees 9,952
Custodian 3,718
Miscellaneous 5,224
--------------
Total expenses 415,611
--------------
NET INVESTMENT INCOME 1,881,440
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 207,406
Net change in unrealized appreciation (depreciation) on
investments 2,783,647
--------------
NET GAIN ON INVESTMENTS 2,991,053
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 4,872,493
==============
</TABLE>
4 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin California Tax Exempt Bond Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
10/31/00 Year Ended
(Unaudited) 4/30/00
------------ -----------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 1,881,440 $ 4,151,252
Net realized gain (loss) 207,406 511,799
Net change in unrealized appreciation
(depreciation) 2,783,647 (7,025,448)
------------ -----------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 4,872,493 (2,362,397)
------------ -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (1,855,540) (4,090,438)
Net investment income, Class B (32,056) (73,010)
Net realized gains, Class A -- (1,010,659)
Net realized gains, Class B -- (22,760)
------------ -----------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (1,887,596) (5,196,867)
------------ -----------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (119,960
and 164,765 shares, respectively) 1,512,267 2,093,896
Net asset value of shares issued from
reinvestment of distributions
(65,050 and 194,344 shares,
respectively) 805,877 2,386,464
Cost of shares repurchased (462,950
and 1,210,978 shares, respectively) (5,712,027) (15,038,907)
------------ -----------
Total (3,393,883) (10,558,547)
------------ -----------
CLASS B
Proceeds from sales of shares (19,058
and 42,249 shares, respectively) 238,449 521,497
Net asset value of shares issued from
reinvestment of distributions
(1,196 and 4,418 shares,
respectively) 14,827 54,190
Cost of shares repurchased (51,548 and
47,061 shares, respectively) (640,490) (579,840)
------------ -----------
Total (387,214) (4,153)
------------ -----------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (3,781,097) (10,562,700)
------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS (796,200) (18,121,964)
NET ASSETS
Beginning of period 79,005,608 97,127,572
------------ -----------
END OF PERIOD [INCLUDING
UNDISTRIBUTED NET INVESTMENT INCOME
(LOSS) OF ($70,718) AND
DISTRIBUTIONS IN EXCESS OF NET
INVESTMENT INCOME OF ($64,562),
RESPECTIVELY] $ 78,209,408 $79,005,608
============ ===========
</TABLE>
See Notes to Financial Statements 5
<PAGE>
Phoenix-Goodwin California Tax Exempt Bond Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS CLASS A
ENDED ---------------------------------------------------------
10/31/00 YEAR ENDED APRIL 30
(UNAUDITED) ---------------------------------------------------------
------------ 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.13 $ 13.18 $13.12 $ 12.72 $ 12.77 $ 12.63
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.30 0.60 0.64 0.65 0.66 0.67
Net realized and unrealized gain (loss) 0.47 (0.90) 0.11 0.47 0.04 0.20
------- ---------- ------ ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.77 (0.30) 0.75 1.12 0.70 0.87
------- ---------- ------ ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.30) (0.60) (0.63) (0.65) (0.66) (0.67)
Distributions in excess of net investment
income -- -- -- -- -- (0.01)
Distributions from net realized gains -- (0.15) (0.06) (0.07) (0.09) (0.03)
Distributions in excess of accumulated net
realized gains -- -- -- -- -- (0.02)
------- ---------- ------ ------- ------- -------
TOTAL DISTRIBUTIONS (0.30) (0.75) (0.69) (0.72) (0.75) (0.73)
------- ---------- ------ ------- ------- -------
Change in net asset value 0.47 (1.05) 0.06 0.40 (0.05) 0.14
------- ---------- ------ ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 12.60 $ 12.13 $13.18 $ 13.12 $ 12.72 $ 12.77
======= ========== ====== ======= ======= =======
Total return(1) 6.42%(4) (2.17)% 5.92% 8.84% 5.56% 6.92%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $76,795 $77,265 $95,230 $102,312 $109,358 $113,806
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.04%(3) 1.10% 1.00% 0.96% 0.93% 0.99%
Net investment income 4.79%(3) 4.84% 4.72% 4.90% 5.13% 5.15%
Portfolio turnover 0% 12% 14% 9% 17% 20%
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS CLASS B
ENDED --------------------------------------------------------
10/31/00 YEAR ENDED APRIL 30
(UNAUDITED) --------------------------------------------------------
----------- 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.14 $13.20 $13.13 $12.73 $12.77 $12.63
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.26 0.51 0.54 0.56 0.56 0.56(2)
Net realized and unrealized gain (loss) 0.48 (0.91) 0.12 0.46 0.05 0.20
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.74 (0.40) 0.66 1.02 0.61 0.76
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.26) (0.51) (0.53) (0.55) (0.56) (0.56)
Distributions in excess of net investment
income -- -- -- -- -- (0.01)
Distributions from net realized gains -- (0.15) (0.06) (0.07) (0.09) (0.03)
Distributions in excess of accumulated net
realized gains -- -- -- -- -- (0.02)
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (0.26) (0.66) (0.59) (0.62) (0.65) (0.62)
------ ------ ------ ------ ------ ------
Change in net asset value 0.48 (1.06) 0.07 0.40 (0.04) 0.14
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $12.62 $12.14 $13.20 $13.13 $12.73 $12.77
====== ====== ====== ====== ====== ======
Total return(1) 6.09%(4) (2.98)% 5.11% 8.10% 4.84% 6.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,414 $1,741 $1,897 $1,562 $1,359 $1,258
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.79%(3) 1.85% 1.75% 1.71% 1.68% 1.78%
Net investment income 4.04%(3) 4.09% 3.97% 4.15% 4.37% 4.32%
Portfolio turnover 0% 12% 14% 9% 17% 20%
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Computed using average shares outstanding.
(3) Annualized.
(4) Not annualized.
6 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN CALIFORNIA TAX EXEMPT BOND FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Effective August 17, 2000, Phoenix-Goodwin California Tax Exempt Bond Fund
(the "Fund") is organized as a Delaware Business Trust. Prior to that date, the
Fund was 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 accounting principles
generally accepted in the United states 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
As compensation for its 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
0.45% of the average daily net assets of the Fund for the first $1 billion,
0.40% for the second $1 billion, and 0.35% for average daily net assets of over
$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 $1,234 for Class A shares and deferred sales
charges of $14,304 for Class B shares for the six months ended October 31, 2000.
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
7
<PAGE>
PHOENIX-GOODWIN CALIFORNIA TAX EXEMPT BOND FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 (UNAUDITED) (CONTINUED)
Distributor has advised the Fund that of the total amount expensed for the six
months ended October 31, 2000, $13,677 was earned by the Distributor and $90,764
was paid to unaffiliated participants.
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. For the six months ended October 31, 2000, financial agent fees
were $50,357, of which PEPCO received $20,860. 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, 2000, transfer agent
fees were $29,808, of which PEPCO retained $7,374, which is net of fees paid to
State Street.
At October 31, 2000, PHL and affiliates held 244 Class A shares and 11,100
Class B shares of the Fund with a combined value of $143,156.
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities, excluding short-term securities and
futures, for the six months ended October 31, 2000, aggregated $0 and
$5,449,476, 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 Bond Fund, 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 MEETINGS (UNAUDITED)
Special meetings of Shareholders of Phoenix-Goodwin California Tax Exempt
Bonds, Inc. were held on May 16, 2000 and August 17, 2000, respectively, to
approve the following matters:
1. Approve a new Rule 12b-1 Distribution Plan for Class B Shares.
2. Approve a new Rule 12b-1 Distribution Plan for Class C Shares.
3. Approve an Agreement and Plan of Reorganization which provides for the
reorganization of the Fund into a Delaware business trust.
On the record date of May 16, 2000, the shares outstanding and percentage of the
shares outstanding and entitled to vote that were present by proxy were as
follows:
<TABLE>
<CAPTION>
CLASS OF SHARES SHARES OUTSTANDING PERCENTAGE PRESENT BY PROXY
---------------- ------------------ ---------------------------
<S> <C> <C>
Class B 24,446,125 50.72%
Class C 32,741 50.31%
</TABLE>
On the record date of August 17, 2000, there were 70,291,573 shares outstanding
and 57.01% 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. Approve a new Rule 12b-1 Distribution
Plan for Class B Shares 10,669,877 680,030 1,048,747
2. Approve a new Rule 12b-1 Distribution
Plan for Class C Shares 16,472 0 0
3. Approve Amendment and Plan of
Reorganization 35,884,137 1,517,163 2,673,817
</TABLE>
9
<PAGE>
PHOENIX-GOODWIN CALIFORNIA TAX EXEMPT BOND FUND
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
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
Robert S. Driessen, Vice President
Timothy M. Heaney, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Nancy J. Engberg, Assistant Secretary
INVESTMENT ADVISER
Phoenix Investment Counsel, Inc.
56 Prospect Street
Hartford, Connecticut 06115-0480
PRINCIPAL UNDERWRITER
Phoenix Equity Planning Corporation
56 Prospect Street
Hartford, Connecticut 06115-0480
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
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
www.phoenixinvestments.com
<PAGE>
PHOENIX EQUITY PLANNING CORPORATION
PO Box 150480
Hartford CT 06115-0480
PRSRT STD
U.S. Postage
PAID
Andrew
Associates
[PHOENIX LOGO]
For more information about
Phoenix mutual funds, please call
your financial representative or
contact us at 1-800-243-4361 or
www.phoenixinvestments.com.
PXP 680 (12/00)
