<PAGE>
PHOENIX INVESTMENT PARTNERS
ANNUAL REPORT
DECEMBER 31, 1999
--ZWEIG Phoenix-Zweig
Appreciation Fund
Phoenix-Zweig
Foreign Equity Fund
Phoenix-Zweig
Government Cash Fund
Phoenix-Zweig
Government Fund
Phoenix-Zweig
Growth & Income Fund
Phoenix-Zweig
Managed Assets
[LOGO] PHOENIX Phoenix-Zweig
INVESTMENT PARTNERS Strategy Fund
<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 FELLOW SHAREHOLDER:
[PHOTO]
We were cautiously positioned for much of 1999. Two year-long trends -- rising
interest rates and increased investor optimism -- moved our research into
negative territory. This risk-averse strategy, coupled with our value bias, kept
our funds out of favor last year.
Our caution was warranted, however, as 61% of the stocks on the New York Stock
Exchange, more than 50% of the S&P 500 Index(1), and 50% of the OTC stocks
declined in 1999. This underperformance by so many stocks was masked by the
large technology names that did well, buoying most stock averages to higher
levels.
This "tale of two markets" is heralding a new trend in the economy. There are
now two types of companies, with widely disparate characteristics. The new
economy is represented by technology companies -- communications, Internet, and
software names -- that are less capital-intensive than traditional manufacturing
businesses. The cost of money matters less to these firms, and rising interest
rates are thus less of a problem for these companies. On the other hand, there
are still plenty of "old economy" companies, those manufacturing names that
follow the classic business cycle. As interest rates rose in 1999, these names
suffered -- just as our models expected they would.
The challenge to a risk-averse money manager like our firm is clear. You hire
us to follow the disciplines of our research and to preserve your capital during
bear markets. At the same time, we must respond to changing trends in the market
and the economy. If a particular indicator is no longer valid, we must replace
it with a more current one. As an example, we used to examine the prices of
commodities that are used in the old, manufacturing-based economy. Instead, we
now examine the prices of commodities used in new-economy items such as
semiconductors and modern batteries.
Thus we are refining our research to keep up with the new economy while
remembering that the law of market cycles has not been repealed -- even in the
hot technology sector. We will always be more cautious, rather than less. And
our value bias is a reflection of who we are. In the long run, we will always
seek to achieve superior returns with less risk by buying stocks at reasonable
prices.
I'd like to briefly summarize our research during 1999.
MONETARY
Our monetary research began the year in a favorable position, largely because
bonds had rallied most of 1998. As 1999 progressed, however, our monetary model
deteriorated in response to rising bond yields. The Federal Reserve reacted to
the rising yields and the stronger economy by hiking the fed funds rate three
times. Historically, Fed hikes have been most bearish with inflation at higher
levels than today's. Although oil has nearly tripled in price, most other prices
have yet to accelerate. The Consumer Price Index has risen from its low in 1998
but remains at a modest level.
(1) THE S&P 500 INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF STOCK MARKET
TOTAL RETURN PERFORMANCE. THE INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT.
1
<PAGE>
MESSAGE FROM THE PRESIDENT (CONTINUED)
SENTIMENT
In 1998 our sentiment model was extremely positive. The majority of investors
were pessimistic about the market's prospects -- something we view as a bullish
sign. The strong stock market during 1999 caused a marked decrease in this
pessimism. The increased bullish sentiment has led to heavy investment. This has
made us concerned that there is less money on the sidelines to fuel a continued
rise. Sentiment can change quickly, however, so we continue to monitor it daily.
MOMENTUM
One of our investing mottos is "Don't fight the tape." As a result, we take
the momentum of the market into account when determining our current market
exposure. For much of 1999, the momentum model was in bullish territory. As a
result, we did not reduce our market exposure as much as our monetary and
sentiment models might have suggested. However, since the fall, most momentum
readings have been neutral or negative, and we have reduced our exposure
correspondingly.
We consider flexibility a hallmark of our research. As a result, we will
continue to respond to changes in market conditions. We never predict the
direction of the market, but right now we remain cautiously positioned until our
research indicates a better risk/return profile.
PORTFOLIO CHANGES
As we mentioned in January, we are implementing a new team management
structure that we believe will offer shareholders access to our firm's
considerable combined resources. Carlton Neel, who currently manages several of
the Phoenix-Zweig Funds, now serves as senior portfolio manager and team leader
for all of our open-end funds. David Katzen has left the investment management
business.
The focus of our funds remains the asset allocation strategy determined by the
research team at Zweig Consulting, a firm which I head. Individual stock
selection for the funds will continue to be quantitatively driven, focusing on
stocks that offer the best price-to-growth characteristics. We will be adding
names in some industry groups that represent the growth end of the investing
spectrum. Within those industries, however, we will always look for companies
that our research shows to be fairly valued.
The portfolio team is refining the stock selection process for Phoenix-Zweig
Strategy Fund. Our quantitative approach will now concentrate on stocks
considered to be representative of the S&P 500. As a result, the portfolio's
overall market capitalization and industry weightings will be more closely
aligned with those of the index, making it a true large-cap fund. We believe
these changes will allow shareholders to benefit from our asset allocation
strategy without undue exposure to stock selection risk.
On the following pages, the funds' portfolio management teams comment on the
performance of each of the funds. If you have questions, please contact your
financial advisor or call us at 1-800-243-1574.
Sincerely,
/s/ Martin E. Zweig
Martin E. Zweig, Ph.D.
JANUARY 28, 2000
2
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Phoenix-Zweig Appreciation Fund............................. 4
Phoenix-Zweig Foreign Equity Fund........................... 19
Phoenix-Zweig Government Cash Fund.......................... 31
Phoenix-Zweig Government Fund............................... 38
Phoenix-Zweig Growth & Income Fund.......................... 45
Phoenix-Zweig Managed Assets................................ 58
Phoenix-Zweig Strategy Fund................................. 73
Notes to Financial Statements............................... 86
</TABLE>
3
<PAGE>
PHOENIX-ZWEIG APPRECIATION FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM
Q: HOW WOULD YOU DESCRIBE THE FUND'S INVESTMENT OBJECTIVE AND STRATEGY?
A: In managing the Fund, we focus on achieving capital appreciation through a
flexible approach to investing in small-company stocks. We seek to capitalize on
the often volatile market for smaller companies -- a market whose ups and downs
may present opportunities for significant gains. Investors should keep in mind,
however, that small-company investing involves added risks, such as greater
price volatility, less liquidity, and increased competitive threat.
While our investment philosophy remains the same, we are now utilizing a
team management approach. By capitalizing on all of our firm's analytical
resources and the asset allocation strategy determined by Dr. Martin Zweig and
his team, we believe we can enhance shareholder value. We have also aligned the
Fund's industry group weightings more closely with those of its benchmark, while
still allowing our quantitative stock selection process to contribute positively
to performance.
Q: HOW DID THE FUND PERFORM FOR THE 12 MONTHS ENDED DECEMBER 31, 1999?
A: The Fund's Class A shares declined (1.80)%, Class B shares were down (2.45)%,
Class C shares lost (2.49)%, and Class I shares fell (1.45)%. The Russell 2000
Value Index(1) was down (1.49)% and the Russell 2000 Index(2) gained 21.26%. All
performance figures assume reinvestment of dividends and exclude the effect of
sales charges. Clearly, it was a difficult time for small-cap value stocks,
while the growth elements of the small-cap universe performed well.
Q: HOW WAS THE FUND POSITIONED OVER THE LAST YEAR?
A: We reduced the Fund's equity exposure steadily all year -- from 84% last
January to 56% at the end of December. This was in response to the caution our
monetary model called for throughout 1999. Not since 1994, when the Russell 2000
Index was down (1.80)%, have our monetary indicators been as negative as they
were in 1999. As with the 1994 period, the Federal Reserve is presently in a
tightening mode. Our sentiment model, which considers high investor optimism a
negative, also deteriorated over the course of the year. Our momentum indicators
ended the year with a neutral reading.
Q: WHAT MARKET FACTORS HAD THE GREATEST AFFECT ON PERFORMANCE?
A: The key to successful stock selection in the small-cap universe this year was
to buy stocks with the highest price-to-earnings (P/E) ratios and little to no
earnings. Any strategy that incorporated valuation seemed doomed to disappoint.
Based on our research, the earnings growth rates for many of these high-flying
stocks do not warrant their current valuations. Given the success of our
discipline historically, we believe there is more upside opportunity to be found
by investing in lower valuation stocks with above-average growth rates.
(1) THE RUSSELL 2000 VALUE INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF
SMALL-CAP, VALUE-ORIENTED STOCK MARKET TOTAL RETURN PERFORMANCE.
(2) THE RUSSELL 2000 INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF SMALL-CAP
STOCK TOTAL RETURN PERFORMANCE.
THE INDICES ARE NOT AVAILABLE FOR DIRECT INVESTMENT.
4
<PAGE>
PHOENIX-ZWEIG APPRECIATION FUND (CONTINUED)
Q: WHAT IS YOUR CURRENT OUTLOOK?
A: Our research continues to show that the risk in the market is high, and the
Fund remains cautiously positioned as a result. Continuing trends of rising
inflation and high interest rates will, we believe, limit the market's near-term
upside. However, after five years of underperformance, small-cap stocks may be
poised to outperform large-cap stocks. In addition, when investors inevitably
begin to focus once again on paying reasonable valuations for a company's
earning growth rate, we believe our time-tested investment style will return to
favor, although past performance is no guarantee of future results.
JANUARY 18, 2000
5
<PAGE>
Phoenix-Zweig Appreciation Fund
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 12/31/99
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR 5 YEARS TO 12/31/99 DATE
------ -------- ----------- ---------
<S> <C> <C> <C> <C>
Class A Shares at NAV(2) (1.80)% 11.50% 10.39% 10/7/91
Class A Shares at POP(3) (7.20) 10.24 9.63 10/7/91
Class B Shares at NAV(2) (2.45) -- 7.49 4/8/96
Class B Shares with CDSC(4) (5.40) -- 7.01 4/8/96
Class C Shares at NAV(2) (2.49) 10.73 8.48 2/3/92
Class C Shares with CDSC(4) (2.49) 10.73 8.48 2/3/92
Class I Shares at NAV(2) (1.45) -- 8.44 11/1/96
Russell 2000 Index(7) 21.26 16.69 Note 6 Note 6
</TABLE>
<TABLE>
<C> <S>
(1) Total returns are historical and include changes in share
price and the reinvestment of both dividends and capital
gains distributions.
(2) "NAV" (Net Asset Value) total returns do not include the
effect of any sales charge.
(3) "POP" (Public Offering Price) total returns include the
effect of the maximum front-end 5.50% sales charge.
(4) CDSC (contingent deferred sales charge) is applied to
redemptions of certain classes of shares that do not have
a sales charge applied at the time of purchase. CDSC
charges for B shares decline from 5% to 0% over a five
year period. CDSC charges for C shares are 1.25% in the
first year and 0% thereafter.
(5) This chart illustrates POP returns on Class A Shares
since inception. Returns on Class B, Class C and Class I
Shares will vary due to differing sales charges.
(6) Index performance is 15.28% for Class A (since 10/7/91),
13.49% for Class B (since 4/8/96), 13.67% for Class C
(since 2/3/92) and 14.82% for Class I (since 11/1/96),
respectively.
(7) The Russell 2000 Index is an unmanaged, commonly used
measure of small-cap stock total return performance. The
Index's performance does not reflect sales charges.
All returns represent past performance which may not be
indicative of future performance. The investment return
and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth
more or less than their original cost.
</TABLE>
GROWTH OF $10,000 PERIODS ENDING 12/31
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
<S> <C> <C>
Phoenix-Zweig Appreciation Fund Class A(5) Russell 2000 Index(7)
10/07/91 $9,450 $10,000
12/31/91 $10,043 $10,787
12/31/92 $10,998 $12,772
12/31/93 $12,610 $15,187
12/30/94 $12,378 $14,911
12/29/95 $15,349 $19,151
12/31/96 $17,711 $22,310
12/31/97 $21,931 $27,299
12/31/98 $21,718 $26,504
12/31/99 $21,328 $32,259
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
10/7/91(inception of the Fund) in Class A shares and reflects the maximum sales
charge of 5.50% on the initial investment. Performance assumes dividends and
capital gains are reinvested. The performance of other share classes will be
greater or less than that shown based on differences in inception dates, fees
and sales charges.
SECTOR WEIGHTINGS 12/31/99
As a percentage of equity holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 26%
Consumer Cyclicals 21%
Financials 13%
Capital Goods 11%
Consumer Staples 8%
Basic Materials 7%
Transportation 4%
Other 10%
</TABLE>
6
<PAGE>
Phoenix-Zweig Appreciation Fund
TEN LARGEST HOLDINGS AT DECEMBER 31, 1999 (AS A PERCENTAGE OF TOTAL NET ASSETS)
<TABLE>
<C> <S> <C>
1. Xircom, Inc. 1.1%
MANUFACTURER OF COMPUTER-NETWORKING PRODUCTS
2. Symantec Corp. 1.1%
PC APPLICATIONS AND SYSTEM SOFTWARE PROVIDER
3. Murphy Oil Corp. 1.0%
INTERNATIONAL INTEGRATED OIL COMPANY
4. Orbotech Ltd. 1.0%
MANUFACTURER OF ELECTRO-OPTICAL SYSTEMS
5. Progress Software Corp. 0.9%
PROVIDER OF DATABASE-MANAGEMENT SYSTEMS
6. City National Corp. 0.8%
CALIFORNIA-BASED COMMERCIAL BANK
7. Zebra Technologies Corp. Class A 0.8%
MANUFACTURER OF BARCODE LABELING SYSTEMS
8. Centex Construction Products, Inc. 0.7%
CEMENT AND WALLBOARD PRODUCER
9. Radian Group, Inc. 0.7%
PRIVATE MORTGAGE PROVIDER
10. FileNet Corp. 0.7%
DOCUMENT-MANAGEMENT SYSTEMS PROVIDER
</TABLE>
INVESTMENTS AT DECEMBER 31, 1999
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMON STOCKS--54.0%
AEROSPACE/DEFENSE--0.1%
Newport News Shipbuilding, Inc.......... 10,000 $ 275,000
AGRICULTURAL PRODUCTS--0.0%
Cadiz, Inc.(b).......................... 12,600 119,700
AIR FREIGHT--0.0%
Amtran, Inc.(b)......................... 4,200 81,375
AIRLINES--0.4%
AirTran Holdings, Inc.(b)............... 500 2,266
America West Holdings Corp. Class
B(b).................................... 51,100 1,060,325
------------
1,062,591
------------
AUTO PARTS & EQUIPMENT--0.3%
American Axle & Manufacturing Holdings,
Inc.(b)................................. 2,100 25,462
Arvin Industries, Inc................... 10,500 297,937
Dura Automotive Systems, Inc.(b)........ 21,200 369,675
Superior Industries International,
Inc..................................... 5,100 136,744
------------
829,818
------------
BANKS (REGIONAL)--1.1%
BSB Bancorp, Inc........................ 5,600 107,800
Cathay Bancorp, Inc..................... 2,800 114,800
City National Corp...................... 58,100 1,913,669
Greater Bay Bancorp..................... 1,900 81,462
Imperial Bancorp(b)..................... 11,300 272,612
------------
2,490,343
------------
BEVERAGES (ALCOHOLIC)--0.4%
Canandaigua Brands, Inc. Class A(b)..... 16,900 861,900
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
BIOTECHNOLOGY--0.2%
BioCryst Pharmaceuticals, Inc.(b)....... 11,200 $ 330,400
Bio-Technology General Corp.(b)......... 1,100 16,775
Cerus Corp.(b).......................... 2,500 66,250
Liposome Co., Inc. (The)(b)............. 14,400 175,725
------------
589,150
------------
BROADCASTING (TELEVISION, RADIO & CABLE)--0.3%
Ascent Entertainment Group, Inc.(b)..... 47,100 597,581
BUILDING MATERIALS--0.6%
Dal-Tile International, Inc.(b)......... 3,900 39,487
Elcor Corp.............................. 13,550 408,194
Johns Manville Corp..................... 30,100 421,400
NCI Buildings Systems, Inc.(b).......... 27,800 514,300
Simpson Manufacturing Co., Inc.(b)...... 2,900 126,875
------------
1,510,256
------------
CHEMICALS--0.0%
Airgas, Inc.(b)......................... 9,900 94,050
CHEMICALS (SPECIALTY)--0.0%
Valhi, Inc.............................. 800 8,400
COMMUNICATIONS EQUIPMENT--1.9%
ADTRAN, Inc.(b)......................... 29,500 1,517,406
Cable Design Technologies Corp.(b)...... 12,800 294,400
California Amplifier, Inc.(b)........... 2,900 76,306
Carrier Access Corp.(b)................. 6,300 424,069
CommScope, Inc.(b)...................... 23,200 935,250
Ditech Communications Corp.(b).......... 2,800 261,800
Harmonic, Inc.(b)....................... 4,500 427,219
Polycom, Inc.(b)........................ 2,600 165,587
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Phoenix-Zweig Appreciation Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMUNICATIONS EQUIPMENT--CONTINUED
Terayon Communication Systems,
Inc.(b)................................. 4,900 $ 307,781
------------
4,409,818
------------
COMPUTERS (HARDWARE)--0.3%
Ancor Communications, Inc.(b)........... 4,400 298,650
Copper Mountain Networks, Inc.(b)....... 4,600 224,250
Cybex Computer Products Corp.(b)........ 6,500 263,250
------------
786,150
------------
COMPUTERS (PERIPHERALS)--1.2%
Advanced Digital Information Corp.(b)... 4,500 218,812
Xircom, Inc.(b)......................... 35,400 2,655,000
------------
2,873,812
------------
COMPUTERS (SOFTWARE & SERVICES)--5.9%
Acclaim Entertainment, Inc.(b).......... 13,400 68,675
Actuate Corp.(b)........................ 4,900 210,087
Ardent Software, Inc.(b)................ 3,300 128,700
BARRA, Inc.(b).......................... 6,500 206,375
Banyan Systems, Inc.(b)................. 2,000 40,000
Corel Corp.(b).......................... 17,500 264,687
Dendrite International, Inc.(b)......... 11,000 372,625
FileNet Corp.(b)........................ 62,800 1,601,400
Hyperion Solutions Corp.(b)............. 8,600 374,100
ISS Group, Inc.(b)...................... 9,500 675,687
Indus International, Inc.(b)............ 2,800 34,125
Informix Corp.(b)....................... 34,200 389,025
Inprise Corp.(b)........................ 6,700 74,119
Latitude Communications, Inc.(b)........ 200 5,225
Marimba, Inc.(b)........................ 900 41,456
Mercury Computer Systems, Inc.(b)....... 27,600 966,000
Mission Critical Software, Inc.(b)...... 5,200 364,000
Novadigm, Inc.(b)....................... 200 4,150
ONYX Software Corp.(b).................. 1,000 37,000
Pegasystems, Inc.(b).................... 5,300 59,625
Pharmacopeia, Inc.(b)................... 1,000 22,625
Progress Software Corp.(b).............. 38,600 2,190,550
Sagent Technology, Inc.(b).............. 2,900 86,819
SalesLogix Corp.(b)..................... 2,100 86,231
Santa Cruz Operation, Inc. (The)(b)..... 33,500 1,017,562
Sybase, Inc.(b)......................... 37,200 632,400
Symantec Corp.(b)....................... 44,200 2,591,225
THQ, Inc.(b)............................ 25,150 583,166
Unify Corp.(b).......................... 6,200 169,725
Verity, Inc. (b)........................ 4,900 208,556
WebTrends Corp.(b)...................... 3,600 291,600
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)--CONTINUED
internet.com Corp.(b)................... 5,600 $ 292,600
------------
14,090,120
------------
CONSTRUCTION (CEMENT & AGGREGATES)--1.2%
Centex Construction Products, Inc....... 44,944 1,752,816
Texas Industries, Inc................... 23,200 987,450
------------
2,740,266
------------
CONSUMER (JEWELRY, NOVELTIES & GIFTS)--0.1%
Fossil, Inc.(b)......................... 14,150 327,219
CONSUMER FINANCE--0.5%
AmeriCredit Corp.(b).................... 28,900 534,650
PMI Group, Inc. (The)................... 13,000 634,562
------------
1,169,212
------------
CONTAINERS & PACKAGING (PAPER)--0.2%
Mail-Well, Inc.(b)...................... 29,800 402,300
DISTRIBUTORS (FOOD & HEALTH)--0.5%
Andrx Corp.(b).......................... 4,800 203,100
PSS World Medical, Inc.(b).............. 15,900 150,056
Patterson Dental Co.(b)................. 6,200 264,275
U.S. Foodservice(b)..................... 32,500 544,375
------------
1,161,806
------------
ELECTRIC COMPANIES--0.3%
CMP Group, Inc.......................... 22,300 614,644
ELECTRICAL EQUIPMENT--1.6%
C&D Technologies, Inc................... 17,700 752,250
C-COR.net Corp.(b)...................... 3,200 245,200
Genlyte Group, Inc. (The)(b)............ 17,000 363,375
Juno Lighting, Inc.(b).................. 22,726 235,782
Sensormatic Electronics Corp.(b)........ 89,300 1,557,169
Three-Five Systems, Inc.(b)............. 10,000 410,000
Vishay Intertechnology, Inc.(b)......... 10,000 316,250
------------
3,880,026
------------
ELECTRONICS (COMPONENT DISTRIBUTORS)--0.5%
Audiovox Corp.(b)....................... 37,800 1,148,175
ELECTRONICS (INSTRUMENTATION)--0.5%
Alpha Industries, Inc.(b)............... 15,000 859,687
Cytyc Corp.(b).......................... 5,000 305,312
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Appreciation Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
ELECTRONICS (INSTRUMENTATION)--CONTINUED
LTX Corp.(b)............................ 5,600 $ 125,300
------------
1,290,299
------------
ELECTRONICS (SEMICONDUCTORS)--1.3%
Actel Corp.(b).......................... 5,200 124,800
Alliance Semiconductor Corp.(b)......... 5,100 85,106
Cirrus Logic, Inc.(b)................... 28,800 383,400
International Rectifier Corp.(b)........ 21,100 548,600
NVIDIA Corp.(b)......................... 11,300 530,394
Semtech Corp.(b)........................ 21,500 1,120,687
TranSwitch Corp.(b)..................... 5,100 370,069
------------
3,163,056
------------
ENGINEERING & CONSTRUCTION--0.1%
Dycom Industries, Inc.(b)............... 6,400 282,000
EQUIPMENT (SEMICONDUCTOR)--0.5%
Applied Science and Technology,
Inc.(b)................................. 3,900 129,614
Cymer, Inc.(b).......................... 7,000 322,000
Helix Technology Corp.(b)............... 4,000 179,250
Ibis Technology Corp.(b)................ 5,500 272,937
Ultratech Stepper, Inc.(b).............. 14,200 228,975
------------
1,132,776
------------
FINANCIAL (DIVERSIFIED)--1.2%
Doral Financial Corp.................... 82,400 1,014,550
Financial Federal Corp.(b).............. 11,000 250,937
Financial Security Assurance Holdings
Ltd..................................... 24,200 1,261,425
First Sierra Financial, Inc.(b)......... 100 1,712
Koger Equity............................ 18,500 312,187
Medical Assurance, Inc.(b).............. 26 551
------------
2,841,362
------------
FOODS--1.0%
Del Monte Foods Co.(b).................. 11,200 137,900
Hain Food Group, Inc. (The)(b).......... 19,800 443,025
IBP, Inc................................ 19,100 343,800
International Home Foods, Inc.(b)....... 13,100 227,612
McCormick & Co., Inc.................... 35,500 1,056,125
Smithfield Foods, Inc.(b)............... 10,300 247,200
------------
2,455,662
------------
FOOTWEAR--0.1%
Timberland Co. (The) Class A(b)......... 5,300 280,237
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--0.8%
Argosy Gaming Co.(b).................... 16,900 $ 263,006
Aztar Corp.(b).......................... 49,500 538,312
Boyd Gaming Corp.(b).................... 45,500 264,469
Hollywood Park, Inc.(b)................. 24,200 542,987
Intrawest Corp.......................... 1,200 20,775
Isle of Capri Casinos, Inc.(b).......... 13,200 174,075
------------
1,803,624
------------
GOLD & PRECIOUS METALS MINING--0.2%
Homestake Mining Co..................... 60,000 468,750
HEALTH CARE (DIVERSIFIED)--0.1%
IVAX Corp.(b)........................... 6,000 154,500
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.0%
Amylin Pharmaceuticals, Inc.(b)......... 3,000 25,031
Noven Pharmaceuticals, Inc.(b).......... 4,300 77,937
------------
102,968
------------
HEALTH CARE (GENERIC AND OTHER)--0.2%
Alpharma, Inc. Class A.................. 11,300 347,475
Dura Pharmaceuticals, Inc.(b)........... 12,400 172,825
------------
520,300
------------
HEALTH CARE (HOSPITAL MANAGEMENT)--0.1%
LifePoint Hospitals, Inc.(b)............ 7,400 87,412
Triad Hospitals, Inc.(b)................ 5,400 81,675
------------
169,087
------------
HEALTH CARE (MANAGED CARE)--0.5%
Express Scripts, Inc. Class A(b)........ 6,000 384,000
Foundation Health Systems, Inc. Class
A(b).................................... 3,100 30,806
Humana, Inc.(b)......................... 16,400 134,275
Mid Atlantic Medical Services,
Inc.(b)................................. 75,300 625,931
------------
1,175,012
------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.4%
ArthroCare Corp.(b)..................... 6,900 420,900
Laser Vision Centers, Inc.(b)........... 40,900 432,006
------------
852,906
------------
HEALTH CARE (SPECIALIZED SERVICES)--0.4%
AmeriPath, Inc.(b)...................... 9,000 73,687
Apria Healthcare Group, Inc.(b)......... 8,600 154,262
Hooper Holmes, Inc...................... 16,100 414,575
Laboratory Corporation of America
Holdings(b)............................. 24,800 91,450
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Phoenix-Zweig Appreciation Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
HEALTH CARE (SPECIALIZED SERVICES)--CONTINUED
Orthodontic Centers of America, Inc.
(b)..................................... 14,000 $ 167,125
------------
901,099
------------
HOMEBUILDING--1.2%
Cadillac Fairview Corp.(b).............. 22,000 506,000
Castle & Cooke, Inc.(b)................. 4,600 58,362
Del Webb Corp.(b)....................... 3,400 84,787
Fairfield Communities, Inc.(b).......... 40,900 439,675
Horton (D.R.), Inc...................... 14,300 197,519
LNR Property Corp....................... 13,600 270,300
NVR, Inc.(b)............................ 5,200 248,300
Pulte Corp.............................. 13,100 294,750
Standard Pacific Corp................... 25,200 277,200
Toll Brothers, Inc.(b).................. 7,500 139,687
Trendwest Resorts, Inc.(b).............. 13,200 297,000
------------
2,813,580
------------
HOUSEHOLD FURNISHINGS & APPLIANCES--1.1%
Ethan Allen Interiors, Inc.............. 46,800 1,500,525
Furniture Brands International,
Inc.(b)................................. 13,500 297,000
La-Z-Boy, Inc........................... 9,800 164,762
U.S. Industries, Inc.................... 52,100 729,400
------------
2,691,687
------------
HOUSEHOLD PRODUCTS (NON-DURABLE)--0.1%
Church & Dwight Co., Inc................ 5,000 133,437
HOUSEWARES--0.1%
Oneida Ltd.............................. 6,600 143,550
INSURANCE (LIFE/HEALTH)--0.5%
MONY Group, Inc. (The).................. 43,900 1,281,331
National Western Life Insurance Co.
Class A(b).............................. 200 13,725
------------
1,295,056
------------
INSURANCE (PROPERTY-CASUALTY)--0.9%
Radian Group, Inc....................... 36,382 1,737,241
White Mountain Insurance Group, Inc..... 3,400 409,700
------------
2,146,941
------------
INVESTMENT MANAGEMENT--0.5%
Affiliated Managers Group, Inc.(b)...... 27,000 1,091,813
Eaton Vance Corp........................ 4,300 163,400
------------
1,255,213
------------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
IRON & STEEL--0.3%
Commercial Metals Co.................... 12,500 $ 424,219
Quanex Corp............................. 10,200 260,100
Worthington Industries, Inc............. 1,600 26,500
------------
710,819
------------
LEISURE TIME (PRODUCTS)--1.0%
Bally Total Fitness Holding Corp.(b).... 4,600 122,763
Brunswick Corp.......................... 13,000 289,250
Callaway Golf Co........................ 23,700 419,194
Handleman Co.(b)........................ 41,000 548,375
JAKKS Pacific, Inc.(b).................. 12,700 237,331
Monaco Coach Corp.(b)................... 10,825 276,714
Score Board, Inc. (The)(b).............. 786 0
Thor Industries, Inc.................... 4,500 136,969
Winnebago Industries, Inc............... 19,200 385,200
------------
2,415,796
------------
LODGING-HOTELS--0.0%
Extended Stay America, Inc.(b).......... 7,300 55,663
MACHINERY (DIVERSIFIED)--0.6%
Detroit Diesel Corp..................... 14,100 270,544
Manitowoc Co., Inc. (The)............... 17,925 609,450
Mestek, Inc.(b)......................... 100 2,025
Moog, Inc. Class A(b)................... 7,300 197,100
Terex Corp.(b).......................... 8,400 233,100
------------
1,312,219
------------
MANUFACTURING (DIVERSIFIED)--1.2%
AMCOL International Corp................ 16,100 259,613
Graco, Inc.............................. 3,900 139,913
National Service Industries, Inc........ 42,200 1,244,900
Scott Technologies, Inc. (b)............ 2,000 37,750
Spartech Corp........................... 30,900 996,525
United Dominion Industries Ltd.......... 1,900 37,881
WMS Industries, Inc.(b)................. 13,300 174,563
------------
2,891,145
------------
MANUFACTURING (SPECIALIZED)--2.0%
Astec Industries, Inc.(b)............... 16,500 310,406
Brady Corp. Class A..................... 1,500 50,906
Briggs & Stratton Corp.................. 7,600 407,550
CTS Corp................................ 17,900 1,349,213
Cognex Corp.(b)......................... 200 7,800
Donaldson Co., Inc...................... 35,700 859,031
Insituform Technolgies, Inc.(b)......... 9,600 271,200
</TABLE>
10 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Appreciation Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
MANUFACTURING (SPECIALIZED)--CONTINUED
Reliance Steel & Aluminum Co............ 27,500 $ 644,531
Specialty Equipment Cos., Inc.(b)....... 5,900 141,231
United Stationers, Inc.(b).............. 27,400 782,613
------------
4,824,481
------------
METAL FABRICATORS--0.1%
Mueller Industries, Inc.(b)............. 7,800 282,750
METALS MINING--0.2%
Curtiss-Wright Corp..................... 1,500 55,313
Freeport-McMoRan Copper & Gold,
Inc.(b)................................. 14,500 306,313
------------
361,626
------------
NATURAL GAS--0.1%
Equitable Resources, Inc................ 2,900 96,788
Southwest Gas Corp...................... 5,500 126,500
------------
223,288
------------
OIL & GAS (DRILLING & EQUIPMENT)--0.0%
Atwood Oceanics, Inc.(b)................ 3,000 115,875
OIL & GAS (EXPLORATION & PRODUCTION)--2.1%
Cross Timbers Oil Co.................... 12,600 114,188
EOG Resources, Inc.(b).................. 13,800 242,363
Mitchell Energy & Development Corp.
Class B................................. 700 15,094
Murphy Oil Corp......................... 42,400 2,432,700
Noble Affiliates, Inc................... 16,700 358,006
Ocean Energy, Inc.(b)................... 47,700 369,675
Pioneer Natural Resources Co.(b)........ 77,100 689,081
Pogo Producing Co....................... 9,900 202,950
Santa Fe Snyder Corp.(b)................ 60,000 480,000
Vintage Petroleum, Inc.(b).............. 14,300 172,494
------------
5,076,551
------------
PAPER & FOREST PRODUCTS--1.0%
Nortek, Inc.(b)......................... 27,990 783,720
Potlatch Corp........................... 33,100 1,477,088
------------
2,260,808
------------
PERSONAL CARE--0.1%
NBTY, Inc.(b)........................... 9,700 112,156
Perrigo Co.(b).......................... 16,000 128,000
------------
240,156
------------
PHOTOGRAPHY/IMAGING--1.4%
IKON Office Solutions, Inc.............. 61,700 420,331
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
PHOTOGRAPHY/IMAGING--CONTINUED
In Focus Systems, Inc.(b)............... 8,200 $ 190,138
Lason, Inc.(b).......................... 6,100 67,100
Pinnacle Systems, Inc.(b)............... 20,000 813,750
Zebra Technologies Corp. Class A(b)..... 30,500 1,784,250
------------
3,275,569
------------
POWER PRODUCERS (INDEPENDENT)--0.3%
Calpine Corp.(b)........................ 10,600 678,400
PUBLISHING--0.0%
Wiley (John) & Sons, Inc. Class A....... 3,300 55,275
RAILROADS--0.1%
Florida East Coast Industries, Inc...... 500 20,875
GATX Corp............................... 7,300 246,375
Westinghouse Air Brake Co............... 3,138 55,700
------------
322,950
------------
REITS--1.3%
Bedford Property Investors, Inc......... 49,600 846,300
Camden Property Trust................... 12,600 344,925
CarrAmerica Realty Corp................. 7,300 154,213
Essex Property Trust, Inc............... 4,400 149,600
Glenborough Realty Trust, Inc........... 5,700 76,238
Glimcher Realty Trust................... 31,000 399,125
Home Properties of New York, Inc........ 22,700 622,831
Liberty Property Trust.................. 5,900 143,075
Pacific Gulf Properties, Inc............ 6,600 133,650
Parkway Properties, Inc................. 7,500 216,094
------------
3,086,051
------------
RESTAURANTS--1.7%
Brinker International, Inc.(b).......... 23,100 554,400
Buffets, Inc.(b)........................ 80,800 808,000
CEC Entertainment, Inc.(b).............. 14,550 412,856
Cheesecake Factory, Inc. (The)(b)....... 4,700 164,500
Jack in the Box, Inc.(b)................ 70,300 1,454,331
Papa John's International, Inc.......... 12,200 317,963
Ruby Tuesday, Inc....................... 21,400 389,213
------------
4,101,263
------------
RETAIL (COMPUTERS & ELECTRONICS)--0.2%
InterTAN, Inc.(b)....................... 13,400 350,075
REX Stores Corp.(b)..................... 5,600 196,000
------------
546,075
------------
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Phoenix-Zweig Appreciation Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
RETAIL (DEPARTMENT STORES)--0.2%
Harcourt General, Inc................... 9,600 $ 386,400
RETAIL (DISCOUNTERS)--0.3%
Dress Barn, Inc. (The)(b)............... 1,400 23,275
Ross Stores, Inc........................ 12,100 217,044
Value City Department Stores, Inc.(b)... 24,400 369,050
------------
609,369
------------
RETAIL (DRUG STORES)--0.0%
Caremark Rx, Inc.(b).................... 19,500 98,719
RETAIL (FOOD CHAINS)--0.1%
Delhaize America, Inc................... 12,100 245,781
RETAIL (HOME SHOPPING)--0.8%
Insight Enterprises, Inc.(b)............ 37,000 1,503,125
Micro Warehouse, Inc.(b)................ 8,600 159,100
ValuVision International, Inc.(b)....... 2,500 143,281
------------
1,805,506
------------
RETAIL (SPECIALTY)--1.6%
barnesandnoble.com, Inc.(b)............. 5,100 72,356
Barnes & Noble, Inc.(b)................. 11,400 235,125
Borders Group, Inc.(b).................. 11,200 179,900
Group 1 Automotive, Inc.(b)............. 29,900 416,731
Linens 'n Things, Inc.(b)............... 5,400 159,975
Michaels Stores, Inc.(b)................ 9,900 282,150
O'Reilly Automotive, Inc.(b)............ 4,000 86,000
PETCO Animal Supplies, Inc.(b).......... 1,000 14,875
Sunglass Hut International, Inc.(b)..... 58,000 652,500
Tuesday Morning Corp.(b)................ 6,100 112,469
Zale Corp.(b)........................... 31,400 1,518,975
------------
3,731,056
------------
RETAIL (SPECIALTY-APPAREL)--1.2%
American Eagle Outfitters, Inc.(b)...... 13,000 585,000
AnnTaylor Stores Corp.(b)............... 22,100 761,069
Cato Corp. (The) Class A................ 32,200 406,525
Charming Shoppes, Inc.(b)............... 20,900 138,463
Factory 2-U Stores, Inc.(b)............. 5,200 147,550
Pacific Sunwear of California,
Inc.(b)................................. 14,500 466,719
Talbots, Inc. (The)..................... 8,400 374,850
------------
2,880,176
------------
SAVINGS & LOAN COMPANIES--1.4%
Downey Financial Corp................... 32,600 658,113
Harbor Florida Bancshares, Inc.......... 24,700 319,556
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
SAVINGS & LOAN COMPANIES--CONTINUED
PFF Bancorp, Inc........................ 8,300 $ 160,813
Republic Security Financial Corp........ 104,500 747,828
Roslyn Bancorp, Inc..................... 69,135 1,278,998
Telebanc Financial Corp.(b)............. 4,000 104,000
------------
3,269,308
------------
SERVICES (ADVERTISING/MARKETING)--0.1%
Acxiom Corp.(b)......................... 6,400 153,600
SERVICES (COMMERCIAL & CONSUMER)--1.9%
AMERCO(b)............................... 15,600 390,000
Braun Consulting, Inc.(b)............... 5,000 357,500
Copart, Inc.(b)......................... 19,600 852,600
Dollar Thrifty Automotive Group,
Inc.(b)................................. 26,700 639,131
ITT Educational Services, Inc.(b)....... 17,200 265,525
Modem Media.Poppe Tyson, Inc.(b)........ 1,300 91,488
NCO Group, Inc.(b)...................... 23,800 716,975
Profit Recovery Group International,
Inc. (The)(b)........................... 34,600 919,063
Regis Corp.............................. 100 1,888
Rent-A-Center, Inc.(b).................. 2,000 39,625
SITEL Corp.(b).......................... 18,200 127,400
------------
4,401,195
------------
SERVICES (DATA PROCESSING)--0.0%
MedQuist, Inc.(b)....................... 3,000 77,438
SERVICES (EMPLOYMENT)--0.1%
Interim Services, Inc.(b)............... 6,500 160,875
SHIPPING--0.2%
Alexander & Baldwin, Inc................ 23,000 524,688
SPECIALTY PRINTING--0.2%
Topps Co., Inc. (The)(b)................ 37,800 392,175
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.4%
Powerwave Technologies, Inc.(b)......... 11,600 677,150
Price Communications Corp.(b)........... 6,000 166,875
------------
844,025
------------
TELECOMMUNICATIONS (LONG DISTANCE)--0.3%
IDT Corp.(b)............................ 15,300 288,788
NorthEast Optic Network, Inc.(b)........ 1,800 112,613
TALK.com, Inc.(b)....................... 18,100 321,275
------------
722,676
------------
TEXTILES (APPAREL)--0.4%
Guess?, Inc.(b)......................... 5,200 113,100
</TABLE>
12 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Appreciation Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
TEXTILES (APPAREL)--CONTINUED
OshKosh B' Gosh, Inc. Class A........... 34,400 $ 724,550
------------
837,650
------------
TEXTILES (HOME FURNISHINGS)--0.1%
Shaw Industries, Inc.................... 9,300 143,569
TEXTILES (SPECIALTY)--0.1%
Polymer Group, Inc...................... 13,900 253,675
TOBACCO--0.1%
Brooke Group Ltd........................ 15,400 230,038
TRUCKERS--1.4%
American Freightways Corp.(b)........... 23,300 377,169
Landstar System, Inc.(b)................ 16,900 723,531
M.S. Carriers, Inc.(b).................. 10,500 250,688
Roadway Express, Inc.................... 7,000 151,375
Rollins Truck Leasing Corp.............. 10,200 121,763
USFreightways Corp...................... 25,200 1,206,450
Yellow Corp............................. 24,800 416,950
------------
3,247,926
------------
- --------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $107,631,577) 128,049,419
- --------------------------------------------------------------------
FOREIGN COMMON STOCKS--2.9%
AUTO PARTS & EQUIPMENT--0.0%
Desc S.A. de C.V. Sponsored ADR
(Mexico)(b)............................. 4,200 70,350
CHEMICALS (SPECIALTY)--0.2%
NOVA Chemicals Corp. (Canada)........... 20,700 399,769
CONSTRUCTION (CEMENT & AGGREGATES)--0.2%
Boral Ltd. Sponsored ADR (Australia).... 47,900 574,800
ELECTRONICS (INSTRUMENTATION)--1.0%
Orbotech Ltd. (Israel)(b)............... 29,950 2,321,125
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.4%
Shire Pharmaceuticals Group PLC ADR
(United Kingdom)(b)..................... 30,341 883,682
INSURANCE (LIFE/HEALTH)--0.1%
London Pacific Group Ltd. Sponsored ADR
(United Kingdom)........................ 5,700 205,200
MACHINERY (DIVERSIFIED)--0.3%
Scitex Corp Ltd. (Israel)(b)............ 41,000 597,062
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
PAPER & FOREST PRODUCTS--0.3%
Domtar, Inc. (Canada)................... 23,400 $ 274,950
Maderas y Sinteticos SA (Masisa)
Sponsored ADR (Chile)................... 27,100 348,913
------------
623,863
------------
SHIPPING--0.1%
Bouygues Offshore S.A. ADR (France)..... 17,000 312,375
SPECIALTY PRINTING--0.0%
Quebecor Printing, Inc. (Canada)........ 3,801 84,572
TELECOMMUNICATIONS (LONG DISTANCE)--0.3%
PT Indosat (Persero) Tbk ADR
(Indonesia)............................. 30,600 661,725
- --------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $4,495,220) 6,734,523
- --------------------------------------------------------------------
RIGHTS--0.0%
SAVINGS & LOAN COMPANIES--0.0%
Coast Federal Litigation Contingent
Payments Rights Trust(b)................ 14,900 22,350
- --------------------------------------------------------------------
TOTAL RIGHTS
(IDENTIFIED COST $208,600) 22,350
- --------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--56.9%
(IDENTIFIED COST $112,335,397) 134,806,292
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PAR
VALUE
(000)
-------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--43.9%
U.S. GOVERNMENT SECURITIES--0.4%
U.S. Treasury Bill 5.06%,
3/2/00(c)..................... $ 1,000 991,691
FEDERAL AGENCY SECURITIES--27.3%
Fannie Mae Discount Note
5.68%, 1/18/00................ 10,000 9,973,178
Fannie Mae Discount Note
5.58%, 1/20/00................ 5,000 4,985,275
Fannie Mae Discount Note
5.59%, 1/27/00................ 10,000 9,959,628
Fannie Mae Discount Note
5.77%, 1/27/00................ 5,000 4,979,164
FMC Discount Note 5.70%,
1/31/00....................... 5,000 4,976,250
FHLB Discount Corp. 5.75%,
2/9/00........................ 10,000 9,937,708
FMC Discount Note 5.60%,
2/11/00....................... 10,000 9,936,222
Fannie Mae Discount Note
5.67%, 2/24/00................ 10,000 9,911,084
---------------------
64,658,509
---------------------
</TABLE>
See Notes to Financial Statements 13
<PAGE>
Phoenix-Zweig Appreciation Fund
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
------- ---------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS--16.2%
Morgan Stanley & Co., Inc.
repurchase agreement, 2.75%,
dated 12/31/99 due 1/3/00,
repurchase price $20,485,694
collateralized by Fannie Mae
Bonds 5.50% to 8.50%, 5/1/11
to 12/1/29, market value
$20,993,347................... $20,481 $ 20,481,000
<CAPTION>
PAR
VALUE
(000) VALUE
------- ---------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS--CONTINUED
Prudential Securities, Inc.
repurchase agreement, 2.60%,
dated 12/31/99 due 1/3/00,
repurchase price $18,003,900
collateralized by Fannie Mae
Discount Note 5.86%, 3/23/00
market value $18,360,020...... 18,000 18,000,000
---------------------
38,481,000
---------------------
- ------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $104,130,936) 104,131,200
- ------------------------------------------------------------------
TOTAL INVESTMENTS--100.8%
(IDENTIFIED COST $216,466,333) 238,937,492(a)
Cash and receivables, less
liabilities--(0.8%) (1,885,812)
---------------------
NET ASSETS--100.0% $ 237,051,680
=====================
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $26,426,824 and gross
depreciation of $4,796,623 for federal income tax purposes. At December
31,1999, the aggregate cost of securities for federal income tax purposes
was $217,307,291.
(b) Non-income producing.
(c) All or a portion segregated as collateral.
14
See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Appreciation Fund
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS
Investment securities at value,
exclusive of repurchase
agreements
(Identified cost $177,985,333) $200,456,492
Repurchase agreements, at value
(Identified cost $38,481,000) 38,481,000
Cash 11,549
Receivables
Fund shares sold 363,096
Dividends and interest 98,463
Prepaid expenses 7,561
------------
Total assets 239,418,161
------------
LIABILITIES
Payables
Fund shares repurchased 1,703,698
Transfer agent fee 225,916
Investment advisory fee 199,688
Distribution fee 124,301
Financial agent fee 33,930
Trustees' fee 3,200
Accrued expenses 75,748
------------
Total liabilities 2,366,481
------------
NET ASSETS $237,051,680
============
NET ASSETS CONSIST OF:
Capital paid in on shares of
beneficial interest $205,454,798
Distributions in excess of net
investment income (708,952)
Accumulated net realized gain 9,834,675
Net unrealized appreciation 22,471,159
------------
NET ASSETS $237,051,680
============
CLASS A
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $126,460,927) 10,545,389
Net asset value per share $11.99
Offering price per share
$11.99/(1-5.50%) $12.69
CLASS B
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $19,522,768) 1,654,127
Net asset value and offering price
per share $11.80
CLASS C
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $89,164,541) 7,562,163
Net asset value and offering price
per share $11.79
CLASS I
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $1,903,444) 155,939
Net asset value and offering price
per share $12.21
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 5,626,090
Dividends 2,059,368
Foreign taxes withheld (2,973)
------------
Total investment income 7,682,485
------------
EXPENSES
Investment advisory fee 3,318,029
Distribution fee, Class A 504,822
Distribution fee, Class B 243,229
Distribution fee, Class C 1,373,134
Financial agent fee 138,207
Transfer agent 530,771
Custodian 99,649
Printing 53,422
Registration 37,948
Professional 27,552
Trustees 14,632
Miscellaneous 22,765
------------
Total expenses 6,364,160
------------
NET INVESTMENT INCOME 1,318,325
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain on securities 53,786,857
Net realized gain on futures
contracts 1,113,424
Net change in unrealized
appreciation (depreciation) on
investments (72,157,266)
------------
NET LOSS ON INVESTMENTS (17,256,985)
------------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS $(15,938,660)
============
</TABLE>
See Notes to Financial Statements 15
<PAGE>
Phoenix-Zweig Appreciation Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
12/31/99 12/31/98
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 1,318,325 $ 34,872
Net realized gain (loss) 54,900,281 41,928,274
Net change in unrealized appreciation (depreciation) (72,157,266) (54,599,852)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS (15,938,660) (12,636,706)
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (1,252,803) (1,073,836)
Net investment income, Class B (38,607) --
Net investment income, Class C -- --
Net investment income, Class I (25,815) (15,628)
Net realized gains, Class A (30,871,238) (23,624,306)
Net realized gains, Class B (4,964,628) (2,982,360)
Net realized gains, Class C (22,920,388) (20,467,218)
Net realized gains, Class I (435,073) (161,535)
------------ ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (60,508,552) (48,324,883)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (14,810,527 shares and
5,803,260 shares, respectively) 227,104,026 101,998,217
Net asset value of shares issued from reinvestment of
distributions
(2,400,385 shares and 1,350,165 shares, respectively) 28,239,979 21,160,618
Cost of shares repurchased (21,524,481 shares and
8,374,990 shares, respectively) (330,355,225) (146,963,985)
------------ ------------
Total (75,011,220) (23,805,150)
------------ ------------
CLASS B
Proceeds from sales of shares (129,606 shares and 787,653
shares, respectively) 1,900,795 14,584,402
Net asset value of shares issued from reinvestment of
distributions
(402,657 shares and 163,583 shares, respectively) 4,626,397 2,520,813
Cost of shares repurchased (774,237 shares and 275,440
shares, respectively) (11,349,693) (4,696,506)
------------ ------------
Total (4,822,501) 12,408,709
------------ ------------
CLASS C
Proceeds from sales of shares (300,852 shares and
1,399,569 shares, respectively) 4,006,824 25,224,485
Net asset value of shares issued from reinvestment of
distributions
(1,806,014 shares and 1,027,289 shares, respectively) 20,696,922 15,809,984
Cost of shares repurchased (7,166,283 shares and 3,540,744
shares, respectively) (106,799,870) (60,176,400)
------------ ------------
Total (82,096,124) (19,141,931)
------------ ------------
CLASS I
Proceeds from sales of shares (19,302 shares and 67,519
shares, respectively) 292,647 1,079,171
Net asset value of shares issued from reinvestment of
distributions
(38,375 shares and 11,146 shares, respectively) 460,876 177,157
Cost of shares repurchased (69,729 shares and 58,827
shares, respectively) (1,143,332) (1,188,050)
------------ ------------
Total (389,809) 68,278
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (162,319,654) (30,470,094)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (238,766,866) (91,431,683)
NET ASSETS
Beginning of period 475,818,546 567,250,229
------------ ------------
END OF PERIOD [INCLUDING DISTRIBUTIONS IN EXCESS OF NET
INVESTMENT INCOME OF
($708,952) AND ($1,396,124), RESPECTIVELY] $237,051,680 $475,818,546
============ ============
</TABLE>
16 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Appreciation Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------
YEAR ENDED DECEMBER 31
-------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.21 $ 18.27 $ 15.90 $ 15.91 $ 13.54
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.11(4) 0.07 0.10 0.17 0.16
Net realized and unrealized gain (loss) (0.51) (0.32) 3.67 2.25 3.05
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS (0.40) (0.25) 3.77 2.42 3.21
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.12) (0.07) (0.09) (0.17) (0.33)
Dividends from net realized gains (3.70) (1.74) (1.31) (2.26) (0.51)
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (3.82) (1.81) (1.40) (2.43) (0.84)
--------- --------- --------- --------- ---------
Change in net asset value (4.22) (2.06) 2.37 (0.01) 2.37
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 11.99 $ 16.21 $ 18.27 $ 15.90 $ 15.91
========= ========= ========= ========= =========
Total return(1) (1.80)% (0.97)% 23.83% 15.39% 24.00%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $126,461 $240,900 $293,809 $275,935 $272,590
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.58% 1.52 % 1.52% 1.62% 1.63%
Net investment income 0.74% 0.34 % 0.61% 1.03% 1.10%
Portfolio turnover 92% 117 % 77% 88% 68%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------
FROM
YEAR ENDED DECEMBER 31 INCEPTION
----------------------------------- 4/8/96 TO
1999 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.02 $ 18.13 $ 15.82 $ 16.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.01(4) (0.06) (0.02) 0.03
Net realized and unrealized gain (loss) (0.51) (0.31) 3.64 1.74
--------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS (0.50) (0.37) 3.62 1.77
--------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.02) -- -- (0.03)
Dividends from net realized gains (3.70) (1.74) (1.31) (2.26)
--------- --------- --------- ---------
TOTAL DISTRIBUTIONS (3.72) (1.74) (1.31) (2.29)
--------- --------- --------- ---------
Change in net asset value (4.22) (2.11) 2.31 (0.52)
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 11.80 $ 16.02 $ 18.13 $ 15.82
========= ========= ========= =========
Total return(1) (2.45)% (1.66)% 22.97 % 11.01%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $19,523 $30,370 $22,122 $8,350
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.27% 2.22 % 2.22 % 2.32%(2)
Net investment income 0.08% (0.36)% (0.09)% 0.33%(2)
Portfolio turnover 92% 117 % 77 % 88%
</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 17
<PAGE>
Phoenix-Zweig Appreciation Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
-------------------------------------------------------------
YEAR ENDED DECEMBER 31
-------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.99 $ 18.10 $ 15.79 $ 15.83 $ 13.36
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) --(4) (0.07) (0.02) 0.06 0.06
Net realized and unrealized gain (loss) (0.50) (0.30) 3.64 2.22 3.03
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS (0.50) (0.37) 3.62 2.28 3.09
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- (0.06) (0.11)
Dividends from net realized gains (3.70) (1.74) (1.31) (2.26) (0.51)
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (3.70) (1.74) (1.31) (2.32) (0.62)
--------- --------- --------- --------- ---------
Change in net asset value (4.20) (2.11) 2.31 (0.04) 2.47
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 11.79 $ 15.99 $ 18.10 $ 15.79 $ 15.83
========= ========= ========= ========= =========
Total return(1) (2.49)% (1.67)% 23.01 % 14.54% 23.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $89,165 $201,789 $248,584 $218,714 $195,204
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.28% 2.22 % 2.22 % 2.32% 2.33%
Net investment income 0.02% (0.36)% (0.09)% 0.33% 0.40%
Portfolio turnover 92% 117 % 77 % 88% 68%
</TABLE>
<TABLE>
<CAPTION>
CLASS I
-------------------------------------------------
FROM
YEAR ENDED DECEMBER 31 INCEPTION
----------------------------------- 11/1/96 TO
1999 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.43 $ 18.46 $ 16.04 $ 17.28
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.17(4) 0.09 0.15 0.04
Net realized and unrealized gain (loss) (0.52) (0.29) 3.71 1.02
--------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS (0.35) (0.20) 3.86 1.06
--------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.17) (0.09) (0.13) (0.04)
Dividends from net realized gains (3.70) (1.74) (1.31) (2.26)
--------- --------- --------- ---------
TOTAL DISTRIBUTIONS (3.87) (1.83) (1.44) (2.30)
--------- --------- --------- ---------
Change in net asset value (4.22) (2.03) 2.42 (1.24)
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 12.21 $ 16.43 $ 18.46 $ 16.04
========= ========= ========= =========
Total return(1) (1.45)% (0.67)% 24.17% 6.30%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,903 $2,760 $2,735 $2,202
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.27% 1.22 % 1.22% 1.32%(2)
Net investment income 1.14% 0.64 % 0.91% 1.33%(2)
Portfolio turnover 92% 117 % 77% 88%
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized.
(3) Not annualized.
(4) Computed using average shares outstanding.
18 See Notes to Financial Statements
<PAGE>
PHOENIX-ZWEIG FOREIGN EQUITY FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM
Q: HOW WOULD YOU DESCRIBE THE FUND'S INVESTMENT OBJECTIVE AND STRATEGY?
A: In managing the Fund, we focus on capital appreciation, utilizing a flexible
approach to investing in international stocks. 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 IN 1999?
A: On an absolute basis, it was a stellar year as the Fund posted double-digit
returns. Class A shares gained 22.98%, Class B shares were up 22.06%, Class C
shares rose 21.85% and Class I shares returned 23.30%. The Morgan Stanley World
(excluding U.S.) Index(1) returned 28.27% for the 12 months ended December 31,
1999. All performance figures assume reinvestment of dividends and exclude the
effect of sales charges. We are pleased with these very strong returns.
Q: HOW DO YOU DECIDE TO INVEST IN A COUNTRY?
A: We presently employ 22 country models that analyze three main categories of
indicators: 1) monetary indicators, 2) sentiment indicators, and 3) momentum
indicators. Each country's model has its own specific indicators, but all the
models incorporate elements from each of the above categories. We use our models
to determine the Fund's weighting in each country. For instance, in 1999 Japan
was one of our favorite markets as interest rates were low (good monetary
background); many investors were still nervous about the future in Japanese
stocks (excellent sentiment readings); and the market was beginning to move
higher (positive momentum).
Q: HOW DO YOU SEEK TO MANAGE CURRENCY RISK?
A: Whenever a stock is purchased on a non-U.S. exchange, it is paid for in the
local currency. We can either buy that currency by selling U.S. dollars and
receiving the other currency, or we can borrow the local currency through the
foreign exchange forwards market. We often choose to neutralize currency
risk -- and thus reduce the Fund's daily volatility -- by hedging the currency
risk through foreign exchange forwards contracts. We have created models to help
us decide which currencies to hedge and where to remain unhedged. On average, we
expect the Fund to be hedged back into U.S. dollars about two-thirds of the
time. We believe that an occasional exposure to currency risk has the potential
to enhance performance, but often it is better to reduce the overall volatility
of the Fund by hedging.
Q: WHAT IS YOUR CURRENT OUTLOOK?
A: As of this writing, our models are cautious in most major markets. As a
result, we are holding more cash than usual. Many central banks around the world
are tightening money supply, which is reducing our monetary models to a negative
reading. Foreign investor sentiment is overly bullish -- another negative
factor. Only market momentum remains positive. Thus, as long as the markets
trade well, we will remain somewhat invested overseas. If the models deteriorate
further, we will further reduce our market exposure.
JANUARY 18, 2000
(1) THE MORGAN STANLEY WORLD (EXCLUDING U.S.) INDEX(1), WHICH INCLUDES NET
DIVIDENDS REINVESTED, IS AN UNMANAGED, COMMONLY USED MEASURE OF FOREIGN
STOCK TOTAL RETURN PERFORMANCE. THE INDEX IS NOT AVAILABLE FOR DIRECT
INVESTMENT.
19
<PAGE>
Phoenix-Zweig Foreign Equity Fund
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 12/31/99
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 Year TO 12/31/99 DATE
------ ----------- ------------
<S> <C> <C> <C>
Class A Shares at NAV(2) 22.98% 15.60% 11/21/97
Class A Shares at POP(3) 16.22 12.53 11/21/97
Class B Shares at NAV(2) 22.06 14.79 11/21/97
Class B Shares with CDSC(4) 18.06 13.56 11/21/97
Class C Shares at NAV(2) 21.85 14.65 11/21/97
Class C Shares with CDSC(4) 21.85 14.65 11/21/97
Class I Shares at NAV(2) 23.30 15.93 11/21/97
Morgan Stanley World (excluding U.S.)
Index(6) 28.27 23.05 11/28/97
</TABLE>
(1) Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
(2) "NAV" (Net Asset Value) total returns do not include the effect of any
sales charge.
(3) "POP" (Public Offering Price) total returns include the effect of the
maximum front-end 5.50% sales charge.
(4) CDSC (contingent deferred sales charge) is applied to redemptions of
certain classes of shares that do not have a sales charge applied at the
time of purchase. CDSC charges for B shares decline from 5% to 0% over a
five year period. CDSC charges for C shares are 1.25% in the first year and
0% thereafter.
(5) This chart illustrates POP returns on Class A Shares, and CDSC returns for
Class B and Class C Shares since inception.
(6) The Morgan Stanley World (excluding U.S.) Index is an unmanaged, commonly
used measure of foreign stock total return performance. The Index's
performance does not reflect sales charges.
All returns represent past performance which may not be indicative of
future performance. The investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
GROWTH OF $10,000 PERIODS ENDING 12/31
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PHOENIX-ZWEIG FOREIGN PHOENIX-ZWEIG FOREIGN MORGAN STANLEY WORLD PHOENIX-ZWEIG FOREIGN
EQUITY FUND CLASS A(5) EQUITY FUND CLASS B(5) (EXCLUDING U.S.) INDEX(6) EQUITY FUND CLASS C(5)
<S> <C> <C> <C> <C>
11/21/97 $9,450 $10,000 $10,000 $10,000
12/31/97 $9,553 $10,103 $10,098 $10,103
12/31/98 $10,421 $10,948 $12,027 $10,939
12/31/99 $12,816 $13,063 $15,427 $13,329
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
11/21/97 (inception of the Fund) in Class A, B and C shares. The total return
for Class A shares reflects the maximum sales charge of 5.50% on the initial
investment. The total return for Class B shares reflects the CDSC charges which
decline from 5% to 0% over a five year period. The total return for Class C
shares reflects the CDSC charges which are 1.25% in the first year and 0%
thereafter. The performance of Class I shares will be greater or less than that
shown based on differences in fees. Performance assumes dividends and capital
gains are reinvested.
COUNTRY WEIGHTINGS 12/31/99
As a percentage of equity holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Japan 20%
Germany 12%
France 12%
United Kingdom 10%
Netherlands 7%
Sweden 5%
Finland 5%
Other 29%
</TABLE>
20
<PAGE>
Phoenix-Zweig Foreign Equity Fund
TEN LARGEST HOLDINGS AT DECEMBER 31, 1999 (AS A PERCENTAGE OF TOTAL NET ASSETS)
<TABLE>
<C> <S> <C>
1. Nokia Oyj 3.0%
LEADING SUPPLIER OF DIGITAL MOBILE AND FIXED NETWORKS
2. Deutsche Telekom AG 2.5%
GERMANY'S LARGEST MOBILE COMMUNICATIONS PROVIDER
3. Telefonaktiebolaget LM Ericsson Class B 2.4%
INTERNATIONAL LEADER IN TELECOMMUNICATIONS
4. British Telecommunications PLC 1.9%
UK PROVIDER OF TELECOMMUNICATIONS SERVICES
5. Royal Dutch Petroleum Co. 1.7%
HOLDING COMPANY OF ROYAL DUTCH/SHELL
6. Toyota Motor Corp. 1.7%
AUTOMOBILE MANUFACTURER
7. Fujitsu Ltd. 1.6%
SEMICONDUCTOR, COMPUTER, AND COMMUNICATIONS EQUIPMENT MANUFACTURER
8. Allianz AG 1.6%
GLOBAL INSURANCE AND REINSURANCE PROVIDER
9. Nippon Telegraph & Telephone Corp. 1.4%
PROVIDES TELECOMMUNICATIONS SERVICES WITHIN JAPAN
10. France Telecom SA 1.4%
PRINCIPAL PROVIDER OF TELECOMMUNICATIONS SERVICES IN FRANCE
</TABLE>
INVESTMENTS AT DECEMBER 31, 1999
<TABLE>
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C> <C>
FOREIGN COMMON STOCKS--73.3%
AUSTRALIA--1.2%
AMP Ltd. (Insurance (Life/Health))...... 1,000 $ 11,025
Broken Hill Proprietary Co. Ltd.
(Manufacturing (Diversified))........... 1,400 18,397
National Australia Bank Ltd. (Banks
(Major Regional))....................... 1,200 18,370
News Corp. Ltd. (Broadcasting
(Television, Radio & Cable))............ 2,800 27,208
Telstra Corp. Ltd. (Telephone).......... 5,100 27,744
----------
102,744
----------
CANADA--1.2%
Alcan Aluminum Ltd. (Aluminum).......... 100 4,115
BCE, Inc. (Telephone)................... 100 9,086
Barrick Gold Corp. (Gold & Precious
Metals Mining).......................... 300 5,352
Bombardier, Inc. (Aerospace/Defense).... 700 14,378
Canadian Imperial Bank of Commerce
(Banks (Major Regional))................ 200 4,780
Dofasco, Inc. (Iron & Steel)............ 200 3,949
Imasco Ltd. (Banks (Money Center))...... 300 8,303
Nortel Networks Corp. (Communications
Equipment).............................. 200 20,208
Royal Bank of Canada (Banks (Major
Regional)).............................. 400 17,596
Talisman Energy, Inc. (Oil & Gas
(Exploration & Production))(b).......... 300 7,669
Thomson Corp. (The) (Publishing)........ 100 2,632
Toronto-Dominion Bank (The) (Banks
(Money Center))......................... 200 5,369
----------
103,437
----------
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C> <C>
DENMARK--2.0%
A/S Dampskibsselskabet Svendborg Class B
(Shipping).............................. 4 $ 66,521
Den Danske Bank Group (Banks (Major
Regional)).............................. 200 21,903
Novo Nordisk A/S Class B (Health Care
(Drugs-Major Pharmaceuticals)).......... 200 26,500
Tele Danmark A/S (Telephone)............ 500 37,114
Unidanmark A/S Class A (Banks (Major
Regional)).............................. 200 14,061
----------
166,099
----------
FINLAND--3.3%
Merita PLC (Banks (Major Regional))..... 1,500 8,838
Nokia Oyj (Communications Equipment).... 1,400 253,802
Outokumpu Oyj (Metals Mining)........... 500 7,075
UPM-Kymmene Oyj (Paper & Forest
Products)............................... 250 10,071
----------
279,786
----------
FRANCE--8.5%
Alcatel (Communications Equipment)...... 233 53,504
Axa (Insurance (Multi-Line))............ 453 63,144
Carrefour SA (Retail (Food Chains))..... 279 51,450
France Telecom SA (Telephone)........... 896 118,486
L'Oreal SA (Household Products
(Non-Durable)).......................... 140 112,307
LVMH (Beverages (Alcoholic))............ 127 56,881
Schneider Electric SA (Electrical
Equipment).............................. 367 28,812
Simco SA (Financial (Diversified))...... 610 49,364
Total Fina SA Class B (Oil & Gas
(Refining & Marketing))................. 609 81,270
Total Fina SA Strip (Oil & Gas (Refining
& Marketing))(b)........................ 72 1
</TABLE>
See Notes to Financial Statements 21
<PAGE>
Phoenix-Zweig Foreign Equity Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C> <C>
FRANCE--CONTINUED
Vivendi (Manufacturing (Diversified))... 1,144 $ 103,293
----------
718,512
----------
GERMANY--8.7%
AMB Aachener & Muenchener Beteiligungs
AG (Insurance (Multi-Line))............. 100 6,949
Allianz AG Vinkulierte Registered Shares
(Insurance (Multi-Line))................ 390 130,995
BASF AG (Chemicals (Diversified))....... 675 34,671
Bayer AG (Chemicals (Diversified))...... 600 28,402
DaimlerChrysler AG (Automobiles)........ 1,198 93,147
Deutsche Bank AG (Banks (Major
Regional)).............................. 850 71,782
Deutsche Telekom AG (Telephone)......... 3,000 213,617
Metro AG (Retail (Specialty))........... 100 5,378
Schering AG (Health Care (Drugs-Major
Pharmaceuticals))....................... 300 36,257
Siemens AG (Electronics (Component
Distributors)).......................... 675 85,862
Veba AG (Manufacturing (Diversified))... 500 24,298
----------
731,358
----------
HONG KONG--1.9%
Cable & Wireless HKT Ltd. (Telephone)... 7,000 20,216
Cheung Kong (Holdings) Ltd. (Financial
(Diversified)).......................... 1,500 19,055
China Telecom (Hong Kong) Ltd.
(Telecommunications
(Cellular/Wireless))(b)................. 5,000 31,260
HSBC Holdings PLC (Financial
(Diversified)).......................... 3,000 42,066
Hang Seng Bank Ltd. (Banks (Major
Regional)).............................. 800 9,134
Hutchison Whampoa Ltd. (Manufacturing
(Diversified)).......................... 2,000 29,073
Sung Hung Kai Properties Ltd. (Financial
(Diversified)).......................... 1,000 10,420
----------
161,224
----------
ITALY--2.3%
Assicurazioni Generali (Insurance
(Life/Health)).......................... 1,000 33,035
Beni Stabili SPA (Financial
(Diversified))(b)....................... 500 176
Edison SPA (Electric Companies)......... 1,000 8,198
Eni SPA (Oil (Domestic Integrated))..... 5,000 27,495
Fiat SPA (Automobiles).................. 300 8,566
Istituto Nazionale delle Assicurazioni
SPA (Insurance (Life/Health))........... 1,000 2,649
Riunione Adriatica di Sicurta SPA
(Insurance (Multi-Line))................ 700 7,022
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C> <C>
ITALY--CONTINUED
San Paolo-IMI SPA (Banks (Major
Regional)).............................. 500 $ 6,793
Telecom Italia Mobile SPA (Telephone)... 6,000 67,016
Telecom Italia SPA (Telephone).......... 1,500 21,150
UniCredito Italiano SPA (Banks (Major
Regional)).............................. 2,500 12,287
Unione Immobiliare SPA (Financial
(Diversified)).......................... 1,000 463
----------
194,850
----------
JAPAN--14.4%
Acom Co., Ltd. (Consumer Finance)....... 100 9,797
Bank of Tokyo-Mitsubishi Ltd. (The)
(Banks (Major Regional))................ 4,000 55,750
DDI Corp. (Telephone)................... 6 82,216
Dainippon Ink & Chemicals, Inc.
(Chemicals (Specialty))................. 1,000 2,966
East Japan Railway Co. (Railroads)...... 6 32,358
Fuji Photo Film Co.
(Photography/Imaging)................... 1,000 36,508
Fujikura Ltd. (Electrical Equipment).... 3,000 11,921
Fujitsu Ltd. (Computers (Hardware))..... 3,000 136,831
Hitachi Credit Corp. (Consumer
Finance)................................ 900 18,278
Hitachi Ltd. (Electronics (Component
Distributors)).......................... 5,000 80,258
Kansai Electric Power Co., Inc. (The)
(Electric Companies).................... 1,500 26,148
Matsushita Electric Industrial Co., Ltd.
(Electronics (Component
Distributors)).......................... 3,000 83,097
Minebea Co., Ltd. (Machinery
(Diversified)).......................... 2,000 34,315
Nintendo Co., Ltd. (Leisure Time
(Products))............................. 100 16,619
Nippon Soda Co., Ltd. (Chemicals
(Specialty))............................ 3,000 6,049
Nippon Telegraph & Telephone Corp.
(Telephone)............................. 7 119,898
Nisshin Flour Milling Co., Ltd.
(Agricultural Products)................. 3,000 20,701
Nissho Iwai Corp. (Distributors (Food &
Health))................................ 11,000 8,936
Promise Co., Ltd. (Consumer Finance).... 100 5,090
Sankyo Co., Ltd. (Health Care
(Drugs-Major Pharmaceuticals)).......... 1,000 20,554
Sanwa Bank Ltd. (The) (Banks (Major
Regional)).............................. 1,000 12,166
Sharp Corp. (Household Furnishings &
Appliances)............................. 1,000 25,595
Sony Corp. (Household Furnishings &
Appliances)............................. 100 29,656
Sumitomo Bank Ltd. (The) (Banks (Major
Regional)).............................. 4,000 54,771
Sumitomo Marine & Fire Insurance Co.,
Ltd. (The) (Insurance
(Property-Casualty)).................... 2,000 12,332
Suzuki Motor Corp. (Automobiles)........ 1,000 14,593
Takefuji Corp. (Consumer Finance)....... 300 37,555
Toa Corp. (Engineering &
Construction)........................... 8,000 10,884
Tokyo Electric Power Co., Inc. (The)
(Electric Companies).................... 2,200 59,000
</TABLE>
22 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Foreign Equity Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C> <C>
JAPAN--CONTINUED
Toyota Motor Corp. (Automobiles)........ 3,000 $ 145,346
----------
1,210,188
----------
MALAYSIA--0.8%
Malayan Banking Berhad (Banks (Major
Regional)).............................. 8,000 28,421
Malaysia International Shipping Corp.
Berhad (Shipping)....................... 9,000 14,802
Sime Darby Berhad (Distributors (Food &
Health))................................ 10,000 12,684
Telekom Malaysia Berhad (Telephone)..... 2,000 7,737
----------
63,644
----------
MEXICO--1.0%
Cifra SA de CV (Retail
(Specialty))(b)......................... 4,000 8,021
Grupo Modelo SA de CV (Beverages
(Alcoholic))............................ 5,000 13,720
Grupo Televisa SA CPO (Broadcasting
(Television, Radio & Cable))(b)......... 600 20,264
Telefonos de Mexico SA Series L
(Telephone)............................. 7,000 39,156
----------
81,161
----------
NETHERLANDS--5.2%
ABN AMRO Holding NV (Banks (Major
Regional)).............................. 2,200 54,950
Aegon NV (Insurance (Life/Health))...... 630 60,849
Heineken NV (Beverages (Alcoholic))..... 100 4,877
ING Groep NV (Financial
(Diversified)).......................... 1,150 69,424
KPN NV (Telephone)...................... 100 9,759
Koninklijke (Royal) Philips Electronics
NV (Electronics (Component
Distributors)).......................... 450 61,184
Koninklijke Luchtvaart Maatschappij NV
(Airlines).............................. 75 1,926
Royal Dutch Petroleum Co. (Oil (Domestic
Integrated))............................ 2,400 147,084
TNT Post Group NV (Air Freight)......... 100 2,865
Unilever NV CVA (Foods)................. 300 16,570
Wolters Kluwer NV (Publishing).......... 200 6,768
----------
436,256
----------
NEW ZEALAND--1.9%
Brierley Investments Ltd. (Manufacturing
(Diversified))(b)....................... 15,000 3,135
Carter Holt Harvey Ltd. (Paper & Forest
Products)............................... 30,000 39,187
Contact Energy Ltd. (Electric
Companies).............................. 5,000 8,752
Fletcher Challenge Building (Engineering
& Construction)......................... 4,000 5,894
Fletcher Challenge Energy (Oil & Gas
(Exploration & Production))............. 600 1,567
Fletcher Challenge Paper (Paper & Forest
Products)............................... 6,000 4,201
Independent Newspapers Ltd.
(Publishing)............................ 1,000 4,389
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C> <C>
NEW ZEALAND--CONTINUED
Lion Nathan Ltd. (Beverages
(Alcoholic))............................ 6,000 $ 13,951
Natural Gas Corporation Holdings Ltd.
(Natural Gas)........................... 5,000 4,702
Telecom Corporation of New Zealand Ltd.
(Telephone)............................. 15,000 70,537
----------
156,315
----------
NORWAY--1.9%
Christiania Bank Og Kreditkasse (Banks
(Major Regional))....................... 3,400 16,755
Den Norske Bank ASA (Banks (Major
Regional)).............................. 5,000 20,523
Norsk Hydro ASA (Chemicals
(Specialty))............................ 1,700 71,262
Orkla ASA (Foods)....................... 2,300 39,598
Storebrand ASA (Insurance
(Multi-Line))(b)........................ 2,000 15,221
----------
163,359
----------
SINGAPORE--1.1%
City Developments Ltd. (Financial
(Diversified)).......................... 1,000 5,854
Creative Technology Ltd. (Computers
(Peripherals)).......................... 500 9,066
DBS Land Ltd. (Financial
(Diversified)).......................... 3,000 5,908
Oversea-Chinese Banking Corp. Ltd.
(Banks (Major Regional))................ 2,100 19,291
Sembcorp Industries Ltd. (Manufacturing
(Diversified)).......................... 2,226 3,034
Shangri-La Hotel Ltd.
(Lodging-Hotels)........................ 3,000 5,728
Singapore Airlines Ltd. (Airlines)...... 2,000 22,696
Singapore Press Holdings Ltd.
(Publishing (Newspapers))............... 548 11,878
Singapore Telecommunications Ltd.
(Telephone)............................. 3,500 7,229
----------
90,684
----------
SOUTH AFRICA--1.6%
ABSA Group Ltd. (Banks (Major
Regional)).............................. 1,449 6,498
Anglo American Platinum Corp. Ltd. (Gold
& Precious Metals Mining)............... 445 13,520
AngloGold Ltd. (Gold & Precious Metals
Mining)................................. 289 14,866
De Beers (Metals Mining)................ 687 19,979
Dimension Data Holdings Ltd. (Services
(Data Processing))(b)................... 1,400 8,780
FirstRand Ltd. (Financial
(Diversified)).......................... 10,111 14,456
Imperial Holdings Ltd. (Retail
(Specialty))(b)......................... 667 7,293
Investec Group Ltd. (Banks (Major
Regional)).............................. 169 7,496
Liberty Life Association of Africa Ltd.
(Insurance (Life/ Health)).............. 615 7,094
</TABLE>
See Notes to Financial Statements 23
<PAGE>
Phoenix-Zweig Foreign Equity Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C> <C>
SOUTH AFRICA--CONTINUED
Nedcor Ltd. (Banks (Major Regional)).... 515 $ 11,463
Rembrant Group Ltd. (Financial
(Diversified)).......................... 1,234 11,749
Sappi Ltd. (Paper & Forest Products).... 457 4,514
Sasol Ltd. (Metals Mining).............. 1,139 9,345
----------
137,053
----------
SPAIN--3.0%
Altadis SA (Tobacco).................... 500 7,151
Argentaria, Caja Postal y Banco
Hipotecario de Espana SA (Banks (Major
Regional)).............................. 684 16,072
Autopistas, Concesionaria Espanola SA
(Services (Commercial & Consumer))...... 500 4,860
Banco Bilbao Vizcaya SA (Banks (Major
Regional)).............................. 2,282 32,498
Banco Santander Central Hispano SA
(Banks (Major Regional))................ 3,301 37,369
Endesa SA (Electric Companies).......... 1,064 21,121
Iberdrola SA (Electric Companies)....... 1,700 23,559
Repsol-YPF SA (Oil & Gas (Refining &
Marketing))............................. 1,254 29,073
Telefonica SA (Telephone)(b)............ 3,390 84,673
----------
256,376
----------
SWEDEN--3.8%
AGA AB Class A (Chemicals
(Specialty))............................ 50 829
AstraZeneca Group PLC (Health Care
(Drugs-Major Pharmaceuticals)).......... 500 21,157
Esselte AB Class A (Office Equipment &
Supplies)............................... 50 376
ForeningsSparbanken AB (Banks (Major
Regional)).............................. 700 10,284
Hennes & Mauritz AB Class B (Retail
(Specialty-Apparel)).................... 1,300 43,547
Sandvik AB Class A (Machinery
(Diversified)).......................... 100 3,132
Skandia Forsakrings AB (Insurance
(Life/Health)).......................... 600 18,124
Svenska Cellulosa AB Class B (Household
Products (Non-Durable))................. 100 2,962
Svenska Handlesbanken AB Class A (Banks
(Major Regional))....................... 900 11,319
Telefonaktiebolaget LM Ericsson Class B
(Communications Equipment).............. 3,200 205,736
----------
317,466
----------
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C> <C>
SWITZERLAND--2.2%
Adecco SA (Services (Commercial &
Consumer)).............................. 10 $ 7,787
Credit Suisse Group (Banks (Major
Regional)).............................. 50 9,938
Nestle SA (Foods)....................... 20 36,639
Novartis AG Registered Shares (Health
Care (Drugs-Major Pharmaceuticals))..... 30 44,049
Roche Holding AG (Health Care
(Drugs-Major Pharmaceuticals)).......... 5 59,348
Swiss Re (Insurance
(Property-Casualty)).................... 10 20,543
UBS AG (Banks (Major Regional))......... 30 8,101
----------
186,405
----------
UNITED KINGDOM--7.3%
BP Amoco PLC (Oil (Domestic
Integrated))............................ 11,604 116,681
Barclays PLC (Banks (Major Regional))... 1,186 34,139
British Telecommunications PLC
(Telephone)............................. 6,427 157,073
Carillion PLC (Engineering &
Construction)........................... 480 880
Glaxo Wellcome PLC (Health Care
(Drugs-Major Pharmaceuticals)).......... 2,715 76,747
HSBC Holdings PLC (Financial
(Diversified)).......................... 2,100 29,274
Land Securities PLC (Financial
(Diversified)).......................... 1,400 15,694
Lloyds TSB Group PLC (Financial
(Diversified)).......................... 5,621 70,322
Marks & Spencer PLC (Retail (Department
Stores))................................ 3,900 18,568
Railtrack Group PLC (Railroads)......... 200 3,360
ScottishPower PLC (Electric
Companies).............................. 500 3,788
SmithKline Beecham PLC (Health Care
(Drugs-Major Pharmaceuticals)).......... 4,069 51,924
Tarmac PLC (Construction (Cement &
Aggregates))............................ 480 4,447
Taylor Woodrow PLC (Engineering &
Construction)........................... 1,100 2,381
Unilever PLC (Foods).................... 2,232 16,422
Wolseley PLC (Distributors (Food &
Health))................................ 1,800 13,804
----------
615,504
----------
- -----------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $4,683,284) 6,172,421
- -----------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--73.3%
(IDENTIFIED COST $4,683,284) 6,172,421
- -----------------------------------------------------------------
</TABLE>
24 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Foreign Equity Fund
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
------- ----------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--25.4%
U.S. GOVERNMENT SECURITIES--1.2%
U.S. Treasury Bill 5.02%, 2/3/00(c)..... $ 100 $ 99,540
FEDERAL AGENCY SECURITIES--9.5%
Fannie Mae Discount Note 5.58%,
1/18/00................................. 800 797,892
REPURCHASE AGREEMENT--14.7%
Morgan Stanley & Co., Inc. repurchase
agreement 2.75%, dated 12/31/99 due
1/3/00, repurchase price $1,242,285
collateralized by Fannie Mae Bonds 5.50%
to 8%, 11/1/01 to 12/1/29, market value
$1,267,430.............................. 1,242 1,242,000
- -----------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $2,139,432) 2,139,432
- -----------------------------------------------------------------
TOTAL INVESTMENTS--98.7%
(IDENTIFIED COST $6,822,716) 8,311,853(a)
Cash and receivables, less liabilities--1.3% 112,136
----------
NET ASSETS--100.0% $8,423,989
==========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $1,677,155 and gross
depreciation of $235,675 for federal income tax purposes. At December
31,1999, the aggregate cost of securities for federal income tax purposes
was $6,870,373.
(b) Non-income producing.
(c) All or a portion segregated as collateral.
See Notes to Financial Statements
25
<PAGE>
Phoenix-Zweig Foreign Equity Fund
INDUSTRY DIVERSIFICATION
AS A PERCENTAGE OF TOTAL VALUE OF
TOTAL LONG-TERM INVESTMENTS
(UNAUDITED)
<TABLE>
<S> <C>
Aerospace/Defense....................... 0.2%
Agricultural Products................... 0.3
Air Freight............................. 0.2
Airlines................................ 0.4
Aluminum................................ 0.1
Automobiles............................. 4.2
Banks (Major Regional).................. 10.3
Banks (Money Center).................... 0.2
Beverages (Alcoholic)................... 1.4
Broadcasting (Television, Radio &
Cable)................................ 0.8
Chemicals (Diversified)................. 1.0
Chemicals (Specialty)................... 1.3
Communications Equipment................ 8.6
Computers (Hardware).................... 2.2
Computers (Peripherals)................. 0.1
Construction (Cement & Aggregates)...... 0.1
Consumer Finance........................ 1.1
Distributors (Food & Health)............ 0.6
Electric Companies...................... 2.4
Electrical Equipment.................... 0.7
Electronics (Component Distributors).... 5.0
Engineering & Construction.............. 0.3
Financial (Diversified)................. 5.6
Foods................................... 1.8
Gold & Precious Metals Mining........... 0.5
Health Care (Drugs-Major
Pharmaceuticals)...................... 5.5
Household Furnishings & Appliances...... 0.9
Household Products (Non-Durable)........ 1.9
Insurance (Life/Health)................. 2.2
Insurance (Multi-Line).................. 3.6%
Insurance (Property-Casualty)........... 0.5
Iron & Steel............................ 0.1
Leisure Time Products................... 0.3
Lodging-Hotels.......................... 0.1
Machinery (Diversified)................. 0.6
Manufacturing (Diversified)............. 2.9
Metals Mining........................... 0.6
Natural Gas............................. 0.1
Office Equipment & Supplies............. 0.1
Oil (Domestic Integrated)............... 4.7
Oil & Gas (Exploration & Production).... 0.2
Oil & Gas (Refining & Marketing)........ 1.8
Paper & Forest Products................. 0.9
Photography/Imaging..................... 0.6
Publishing.............................. 0.2
Publishing (Newspapers)................. 0.2
Railroads............................... 0.6
Retail (Department Stores).............. 0.3
Retail (Food Chains).................... 0.8
Retail (Specialty)...................... 0.3
Retail (Specialty-Apparel).............. 0.7
Services (Commercial & Consumer)........ 0.2
Services (Data Processing).............. 0.1
Shipping................................ 1.3
Telecommunications
(Cellular/Wireless)................... 0.5
Telephone............................... 17.7
Tobacco................................. 0.1
--------
100.0%
========
</TABLE>
26
<PAGE>
Phoenix-Zweig Foreign Equity Fund
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS
Investment securities at value,
exclusive of repurchase agreement
(Identified cost $5,580,716) $7,069,853
Repurchase agreement, at value
(Identified cost $1,242,000) 1,242,000
Foreign currency at value
(Identified cost $81,787) 81,747
Cash 3,091
Gross unrealized appreciation on
forward foreign currency contracts 18,038
Receivables
Fund shares sold 169,501
Tax reclaims 6,047
Dividends and interest 2,002
Deferred organization expense 15,520
Prepaid expenses and other assets 3,436
----------
Total assets 8,611,235
----------
LIABILITIES
Gross unrealized depreciation on
forward foreign currency contracts 50,615
Payables
Investment securities purchased 72,329
Transfer agent fee 19,246
Professional fee 11,874
Investment advisory fee 6,585
Custodian fee 6,009
Fund shares repurchased 5,967
Distribution fee 4,524
Financial agent fee 1,393
Trustees' fee 1,016
Accrued expenses 7,688
----------
Total liabilities 187,246
----------
NET ASSETS $8,423,989
==========
NET ASSETS CONSIST OF:
Capital paid in on shares of
beneficial interest $6,798,119
Undistributed net investment income 13,078
Accumulated net realized gain 156,232
Net unrealized appreciation 1,456,560
----------
NET ASSETS $8,423,989
==========
CLASS A
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net Assets
$1,435,800) 100,401
Net asset value per share $14.30
Offering price per share
$14.30/(1-5.50%) $15.13
CLASS B
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net Assets
$1,772,831) 124,853
Net asset value and offering price
per share $14.20
CLASS C
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net Assets
$3,726,520) 263,285
Net asset value and offering price
per share $14.15
CLASS I
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net Assets
$1,488,838) 104,543
Net asset value and offering price
per share $14.24
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 116,098
Interest 107,097
Foreign taxes withheld (17,491)
----------
Total investment income 205,704
----------
EXPENSES
Investment advisory fee 80,425
Distribution fee, Class A 5,583
Distribution fee, Class B 17,254
Distribution fee, Class C 31,423
Financial agent fee 5,624
Transfer agent 45,653
Registration 32,281
Custodian 25,672
Amortization of deferred organization
expenses 5,355
Professional 5,151
Trustees 4,140
Printing 1,268
Miscellaneous 26,303
----------
Total expenses 286,132
Less expenses borne by investment
adviser (35,865)
----------
Net expenses 250,267
----------
NET INVESTMENT LOSS (44,563)
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain on securities 1,050,315
Net realized gain on futures
contracts 47,137
Net realized loss on foreign currency
transactions (84,722)
Net change in unrealized appreciation
(depreciation) on investments 729,635
Net change in unrealized appreciation
(depreciation) on foreign currency
and foreign currency transactions (3,478)
----------
NET GAIN ON INVESTMENTS 1,738,887
----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $1,694,324
==========
</TABLE>
See Notes to Financial Statements 27
<PAGE>
Phoenix-Zweig Foreign Equity Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
12/31/99 12/31/98
----------- ----------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (44,563) $ 47,950
Net realized gain (loss) 1,012,730 (485,415)
Net change in unrealized appreciation (depreciation) 726,157 686,834
----------- ----------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS 1,694,324 249,369
----------- ----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (6,115) (16,973)
Net investment income, Class B -- (8,611)
Net investment income, Class C -- (18,400)
Net investment income, Class I (11,409) (15,723)
Net realized gains, Class A (82,456) --
Net realized gains, Class B (96,479) --
Net realized gains, Class C (176,159) --
Net realized gains, Class I (82,118) --
----------- ----------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (454,736) (59,707)
----------- ----------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (45,819 and 182,658 shares,
respectively) 604,851 2,263,864
Net asset value of shares issued from reinvestment of
distributions
(6,405 and 1,314 shares, respectively) 88,383 16,295
Cost of shares repurchased (123,078 and 48,853 shares,
respectively) (1,679,522) (581,871)
----------- ----------
Total (986,288) 1,698,288
----------- ----------
CLASS B
Proceeds from sales of shares (13,147 and 99,679 shares,
respectively) 178,632 1,245,765
Net asset value of shares issued from reinvestment of
distributions
(6,228 and 592 shares, respectively) 84,942 7,318
Cost of shares repurchased (46,239 and 10,835 shares,
respectively) (615,878) (127,043)
----------- ----------
Total (352,304) 1,126,040
----------- ----------
CLASS C
Proceeds from sales of shares (634,957 and 287,187 shares,
respectively) 8,419,758 3,562,840
Net asset value of shares issued from reinvestment of
distributions
(12,526 and 1,128 shares, respectively) 170,358 13,919
Cost of shares repurchased (658,731 and 116,523 shares,
respectively) (8,742,173) (1,436,779)
----------- ----------
Total (152,057) 2,139,980
----------- ----------
CLASS I
Proceeds from sales of shares (12,621 and 0 shares,
respectively) 156,000 --
Net asset value of shares issued from reinvestment of
distributions (6,783 and 1,272 shares, respectively) 93,527 15,723
Cost of shares repurchased (4,465 and 0 shares,
respectively) (60,113) --
----------- ----------
Total 189,414 15,723
----------- ----------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (1,301,235) 4,980,031
----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS (61,647) 5,169,693
NET ASSETS
Beginning of period 8,485,636 3,315,943
----------- ----------
END OF PERIOD [INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) OF
$13,078 AND ($12,884), RESPECTIVELY] $ 8,423,989 $8,485,636
=========== ==========
</TABLE>
28 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Foreign Equity Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-----------------------------------
YEAR ENDED FROM
DECEMBER 31 INCEPTION
------------------ 11/21/97 TO
1999 1998 12/31/97
<S> <C> <C> <C>
Net asset value, beginning of period $12.39 $11.45 $11.34
INCOME FROM INVESTMENT OPERATIONS(7)
Net investment income (loss) --(6) 0.08(8) 0.01(8)
Net realized and unrealized gain (loss) 2.81 0.96 0.11
------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 2.81 1.04 0.12
------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.06) (0.10) (0.01)
Dividends from net realized gains (0.84) -- --
------ ------ ------
TOTAL DISTRIBUTIONS (0.90) (0.10) (0.01)
------ ------ ------
Change in net asset value 1.91 0.94 0.11
------ ------ ------
NET ASSET VALUE, END OF PERIOD $14.30 $12.39 $11.45
====== ====== ======
Total return(1) 22.98% 9.08% 1.09%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,436 $2,122 $414
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 2.66% 1.80% 1.80%(2)
Net investment income --% 1.14%(8) 1.20%(2)(8)
Portfolio turnover 42% 40% 64%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-----------------------------------
YEAR ENDED FROM
DECEMBER 31 INCEPTION
------------------ 11/21/97 TO
1999 1998 12/31/97
<S> <C> <C> <C>
Net asset value, beginning of period $12.35 $11.45 $11.34
INCOME FROM INVESTMENT OPERATIONS(7)
Net investment income (loss) (0.12)(6) 0.04(8) 0.01(8)
Net realized and unrealized gain (loss) 2.81 0.92 0.11
------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 2.69 0.96 0.12
------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income -- (0.06) (0.01)
Dividends from net realized gains (0.84) -- --
------ ------ ------
TOTAL DISTRIBUTIONS (0.84) (0.06) (0.01)
------ ------ ------
Change in net asset value 1.85 0.90 0.11
------ ------ ------
NET ASSET VALUE, END OF PERIOD $14.20 $12.35 $11.45
====== ====== ======
Total return(1) 22.06% 8.36% 1.03%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,773 $1,873 $713
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 3.44% 2.50% 2.50%(2)
Net investment income (0.90)% 0.44%(8) 0.50%(2)(8)
Portfolio turnover 42% 40% 64%(2)
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized.
(3) Not annualized.
(4) If the investment adviser had not waived fees and reimbursed expenses,
the ratio of operating expenses to average net assets would have been 3.16%,
4.00% and 5.15% for the periods ended December 31, 1999, 1998 and 1997,
respectively.
(5) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 3.89%,
4.70% and 5.85% for the periods ended December 31, 1999, 1998 and 1997,
respectively.
(6) Computed using average shares outstanding.
(7) 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.
(8) Includes realized gains and losses on foreign currency transactions.
See Notes to Financial Statements 29
<PAGE>
Phoenix-Zweig Foreign Equity Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
-----------------------------------
YEAR ENDED FROM
DECEMBER 31 INCEPTION
------------------ 11/21/97 TO
1999 1998 12/31/97
<S> <C> <C> <C>
Net asset value, beginning of period $12.33 $11.45 $11.34
INCOME FROM INVESTMENT OPERATIONS(7)
Net investment income (loss) (0.12)(6) 0.05(8) 0.01(8)
Net realized and unrealized gain (loss) 2.78 0.90 0.11
------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 2.66 0.95 0.12
------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income -- (0.07) (0.01)
Dividends from net realized gains (0.84) -- --
------ ------ ------
TOTAL DISTRIBUTIONS (0.84) (0.07) (0.01)
------ ------ ------
Change in net asset value 1.82 0.88 0.11
------ ------ ------
NET ASSET VALUE, END OF PERIOD $14.15 $12.33 $11.45
====== ====== ======
Total return(1) 21.85% 8.27% 1.03%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $3,727 $3,384 $1,177
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 3.46% 2.50% 2.50%(2)
Net investment income (0.94)% 0.44%(8) 0.50%(2)(8)
Portfolio turnover 42% 40% 64%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS I
-----------------------------------
YEAR ENDED FROM
DECEMBER 31 INCEPTION
------------------ 11/21/97 TO
1999 1998 12/31/97
<S> <C> <C> <C>
Net asset value, beginning of period $12.35 $11.46 $11.34
INCOME FROM INVESTMENT OPERATIONS(7)
Net investment income (loss) --(6) 0.16(8) 0.02(8)
Net realized and unrealized gain (loss) 2.84 0.91 0.12
------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 2.84 1.07 0.14
------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.11) (0.18) (0.02)
Dividends from net realized gains (0.84) -- --
------ ------ ------
TOTAL DISTRIBUTIONS (0.95) (0.18) (0.02)
------ ------ ------
Change in net asset value 1.89 0.89 0.12
------ ------ ------
NET ASSET VALUE, END OF PERIOD $14.24 $12.35 $11.46
====== ====== ======
Total return(1) 23.30% 9.32% 1.22%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,489 $1,107 $1,012
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 2.50% 1.50% 1.50%(2)
Net investment income (0.03)% 1.44%(8) 1.50%(2)(8)
Portfolio turnover 42% 40% 64%(2)
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized.
(3) Not annualized.
(4) If the investment adviser had not waived fees and reimbursed expenses,
the ratio of operating expenses to average net assets would have been 3.89%,
4.70% and 5.85% for the periods ended December 31, 1999, 1998 and 1997,
respectively.
(5) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 2.89%,
3.70% and 4.85% for the periods ended December 31, 1999, 1998 and 1997,
respectively.
(6) Computed using average shares outstanding.
(7) 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.
(8) Includes realized gains and losses on foreign currency transactions.
30 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Government Cash Fund
MONTHLY YIELD COMPARISON
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PHOENIX-ZWEIG GOVERNMENT IBC MONEY FUND
CASH FUND CLASS A(1) REPORT(2)
<S> <C> <C>
01/31/99 4.67% 4.43%
02/28/99 4.26% 4.29%
03/31/99 3.83% 4.23%
04/30/99 4.19% 4.21%
05/31/99 4.62% 4.19%
06/30/99 3.79% 4.23%
07/31/99 4.54% 4.36%
08/31/99 4.35% 4.47%
09/30/99 4.61% 4.62%
10/31/99 5.01% 4.73%
11/30/99 4.45% 4.88%
12/31/99 4.97% 5.08%
</TABLE>
(1)This chart illustrates the period from December 31, 1998 to December 31,
1999. The results are not indicative of the rate of return which may be realized
from an investment made in the Government Cash Fund today. The Government Cash
Fund is neither insured nor guaranteed by the U.S. Government, and there can be
no assurance that the Fund will be able to maintain a stable Net Asset Value at
$1.00 per share.
(2)Average monthly yield of taxable Money Market Funds as reported by IBC's
Money Fund Report.
31
<PAGE>
Phoenix-Zweig Government Cash Fund
INVESTMENTS AT DECEMBER 31, 1999
<TABLE>
<CAPTION>
FACE
VALUE DISCOUNT MATURITY
(000) DESCRIPTION RATE DATE VALUE
------- ----------- -------- --------- ---------------------
<C> <S> <C> <C> <C> <C>
FEDERAL AGENCY SECURITIES--93.1%
$ 5,000 FMC Discount Note........................... 5.75% 1/25/00 $ 4,980,833
5,000 FHLB Discount Corp.......................... 5.56 1/26/00 4,980,694
10,000 FMC Discount Note........................... 5.53 1/26/00 9,961,597
5,000 FC Discount Note............................ 5.80 1/27/00 4,979,056
5,000 FMC Discount Note........................... 5.60 1/27/00 4,979,778
5,000 FC Discount Note............................ 5.48 2/8/00 4,971,078
10,000 FMC Discount Note........................... 5.60 2/8/00 9,940,889
5,000 Fannie Mae Discount Note.................... 5.77 2/9/00 4,968,746
5,000 FHLB Discount Corp.......................... 5.605 2/11/00 4,968,083
5,000 FMC Discount Note........................... 5.60 2/11/00 4,968,111
5,000 FHLB Discount Corp.......................... 5.51 2/15/00 4,965,562
10,000 FHLB Discount Corp.......................... 5.51 2/16/00 9,929,594
10,000 Fannie Mae Discount Note.................... 5.62 2/17/00 9,926,629
10,000 Fannie Mae Discount Note.................... 5.60 2/24/00 9,916,000
10,000 FMC Discount Note........................... 5.53 2/29/00 9,909,369
5,000 FMC Discount Note........................... 5.60 2/29/00 4,954,111
10,000 FMC Discount Note........................... 5.65 3/9/00 9,893,278
10,000 Fannie Mae Discount Note.................... 5.61 3/9/00 9,894,033
10,000 FHLB Discount Corp.......................... 5.74 3/15/00 9,882,011
<CAPTION>
FACE
VALUE DISCOUNT MATURITY
(000) DESCRIPTION RATE DATE VALUE
------- ----------- -------- --------- ---------------------
<C> <S> <C> <C> <C> <C>
FEDERAL AGENCY SECURITIES--CONTINUED
$10,000 Fannie Mae Discount Note.................... 5.68% 3/16/00 $ 9,881,667
5,000 Fannie Mae Discount Note.................... 5.76 3/29/00 4,929,600
--------------------------------------------------------------------------------------------------
153,780,719
TOTAL FEDERAL AGENCY SECURITIES
--------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
INTEREST
RATE
--------
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENT--8.4%
13,972 Mogan Stanley & Co., Inc. repurchase
agreement, 2.75%, dated 12/31/99 due 1/3/00,
repurchase price $13,975,202 collateralized
by Fannie Mae Bonds 5.50% to 7.50%, 1/1/06
to 7/1/29, market value $14,349,725.........
2.75 1/3/00 13,972,000
--------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT 13,972,000
--------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--101.5%
(IDENTIFIED COST $167,752,719) 167,752,719(a)
Cash and receivables, less liabilities--(1.5%) (2,549,804)
---------------------
NET ASSETS--100.0% $ 165,202,915
=====================
</TABLE>
(a) Federal Income Tax Information: At December 31,1999, the aggregate cost of
securities was the same for book and tax purposes.
32
See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Government Cash Fund
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $167,752,719) $167,752,719
Receivables
Fund shares sold 1,559,953
Interest 1,067
Prepaid expenses 1,743
------------
Total assets 169,315,482
------------
LIABILITIES
Payables
Custodian 3,731
Fund shares repurchased 3,866,717
Dividend distributions 108,276
Distribution fee 35,412
Transfer agent fee 29,996
Investment advisory fee 17,071
Financial agent fee 9,995
Trustees' fee 2,252
Accrued expenses 39,117
------------
Total liabilities 4,112,567
------------
NET ASSETS $165,202,915
============
NET ASSETS CONSIST OF:
Capital paid in on shares of
beneficial interest $165,202,915
------------
NET ASSETS $165,202,915
============
CLASS A
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $6,110,047) 6,110,047
Net asset value and offering price
per share $1.00
CLASS B
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $4,650,316) 4,650,316
Net asset value and offering price
per share $1.00
CLASS C
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $5,982,390) 5,982,390
Net asset value and offering price
per share $1.00
CLASS I
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $2,145,805) 2,145,805
Net asset value and offering price
per share $1.00
CLASS M
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $146,314,357) 146,314,357
Net asset value and offering price
per share $1.00
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $8,459,444
----------
Total investment income 8,459,444
----------
EXPENSES
Investment advisory fee 827,398
Distribution fee, Class A 35,335
Distribution fee, Class B 23,892
Distribution fee, Class C 18,441
Distribution fee, Class M 88,331
Financial agent fee 36,190
Transfer agent 71,832
Registration 44,504
Custodian 34,655
Printing 21,247
Professional 20,391
Trustees 8,601
Miscellaneous 2,423
----------
Total expenses 1,233,240
Less expenses borne by investment
adviser (489,015)
----------
Net expenses 744,225
----------
NET INVESTMENT INCOME 7,715,219
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain on securities 817
----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $7,716,036
==========
</TABLE>
See Notes to Financial Statements 33
<PAGE>
Phoenix-Zweig Government Cash Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
12/31/99 12/31/98
------------ -----------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 7,715,219 $ 4,316,206
Net realized gain (loss) 817 220
------------ -----------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS 7,716,036 4,316,426
------------ -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (519,158) (237,940)
Net investment income, Class B (90,797) (28,774)
Net investment income, Class C (272,605) (185,806)
Net investment income, Class I (108,716) (3,850,776)
Net investment income, Class M (6,723,943) (12,910)
Net realized gains, Class A (71) (13)
Net realized gains, Class B (14) (2)
Net realized gains, Class C (50) (11)
Net realized gains, Class I (22) (193)
Net realized gains, Class M (660) (1)
------------ -----------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (7,716,036) (4,316,426)
------------ -----------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (520,346,360 and 95,695,366
shares, respectively) 520,346,360 95,695,366
Net asset value of shares issued from reinvestment of
distributions
(426,045 and 144,560 shares, respectively) 426,045 144,560
Cost of shares repurchased (522,951,700 and 90,022,816
shares, respectively) (522,951,700) (90,022,816)
------------ -----------
Total (2,179,295) 5,817,110
------------ -----------
CLASS B
Proceeds from sales of shares (5,274,685 and 2,873,372
shares, respectively) 5,274,685 2,873,372
Net asset value of shares issued from reinvestment of
distributions
(77,651 and 22,211 shares, respectively) 77,651 22,211
Cost of shares repurchased (2,440,188 and 1,493,667
shares, respectively) (2,440,188) (1,493,667)
------------ -----------
Total 2,912,148 1,401,916
------------ -----------
CLASS C
Proceeds from sales of shares (13,107,153 and 9,959,590
shares, respectively) 13,107,153 9,959,590
Net asset value of shares issued from reinvestment of
distributions
(273,984 and 157,370 shares, respectively) 273,984 157,370
Cost of shares repurchased (14,022,767 and 6,153,574
shares, respectively) (14,022,767) (6,153,574)
------------ -----------
Total (641,630) 3,963,386
------------ -----------
CLASS I
Proceeds from sales of shares (99,867 and 4,309,423
shares, respectively) 99,867 4,309,423
Net asset value of shares issued from reinvestment of
distributions
(88,478 and 12,346 shares, respectively) 88,478 12,346
Cost of shares repurchased (926,871 and 1,537,000 shares,
respectively) (926,871) (1,537,000)
------------ -----------
Total (738,526) 2,784,769
------------ -----------
CLASS M
Proceeds from sales of shares (513,883,273 and 425,483,310
shares, respectively) 513,883,273 425,483,310
Net asset value of shares issued from reinvestment of
distributions
(5,288,093 and 1,658,994 shares, respectively) 5,288,093 1,658,994
Cost of shares repurchased (448,121,158 and 408,477,447
shares, respectively) (448,121,158) (408,477,447)
------------ -----------
Total 71,050,208 18,664,857
------------ -----------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 70,402,905 32,632,038
------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS 70,402,905 32,632,038
NET ASSETS
Beginning of period 94,800,010 62,167,972
------------ -----------
END OF PERIOD $165,202,915 $94,800,010
============ ===========
</TABLE>
34 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Government Cash Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------
YEAR ENDED DECEMBER 31
----------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.04 0.05 0.05 0.05 0.05
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.04 0.05 0.05 0.05 0.05
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.04) (0.05) (0.05) (0.05) (0.05)
------ ------ ------ ------ ------
Change in net asset value -- -- -- -- --
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total return(1) 4.52% 4.91% 4.97% 4.83% 5.08%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $6,110 $8,290 $2,472 $3,360 $3,661
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 0.65% 0.65% 0.65% 0.65% 0.87%
Net investment income 4.41% 4.75% 4.85% 4.73% 4.97%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------
FROM
YEAR ENDED DECEMBER 31 INCEPTION
------------------------------------ 4/8/96 TO
1999 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.04 0.04 0.04 0.03
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.04 0.04 0.04 0.03
------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.04) (0.04) (0.04) (0.03)
------ ------ ------ ------
Change in net asset value -- -- -- --
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ======
Total return(1) 3.80% 4.18% 4.24% 3.03%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $4,650 $1,738 $336 $33
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 1.35% 1.35% 1.35% 1.35%(2)
Net investment income 3.80% 3.97% 4.15% 4.03%(2)
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized.
(3) Not annualized.
(4) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.09%,
1.30%, 1.74%, 1.31% and 1.34% for the periods ended December 31, 1999, 1998,
1997, 1996 and 1995, respectively.
(5) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 2.51%,
3.70%, 7.49% and 1.95% for the periods ended December 31, 1999, 1998, 1997
and 1996, respectively.
See Notes to Financial Statements 35
<PAGE>
Phoenix-Zweig Government Cash Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
----------------------------------------------------------------
YEAR ENDED DECEMBER 31
----------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.04 0.05 0.05 0.05 0.05
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.04 0.05 0.05 0.05 0.05
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.04) (0.05) (0.05) (0.05) (0.05)
------ ------ ------ ------ ------
Change in net asset value -- -- -- -- --
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total return(1) 4.52% 4.91% 4.97% 4.83% 5.08%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $5,982 $6,624 $2,661 $4,535 $4,458
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 0.65% 0.65% 0.65% 0.65% 0.87%
Net investment income 4.43% 4.73% 4.85% 4.73% 4.97%
</TABLE>
<TABLE>
<CAPTION>
CLASS I
----------------------------------------------------
FROM
YEAR ENDED DECEMBER 31 INCEPTION
------------------------------------ 11/1/96 TO
1999 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.05 0.05 0.05 0.01
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.05 0.05 0.01
------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.05) (0.05) (0.05) (0.01)
------ ------ ------ ------
Change in net asset value -- -- -- --
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ======
Total return(1) 4.83% 5.23% 5.28% 0.80%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $2,146 $2,884 $100 $1,401
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 0.35% 0.35% 0.35% 0.35%(2)
Net investment income 4.73% 5.15% 5.15% 5.03%(2)
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized.
(3) Not annualized.
(4) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.35%,
1.38%, 1.65%, 1.25% and 1.15% for the periods ended December 31, 1999, 1998,
1997, 1996 and 1995, respectively.
(5) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 0.67%,
1.47%, 0.82% and 0.73% for the periods ended December 31, 1999, 1998, 1997
and 1996, respectively.
36 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Government Cash Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS M
----------------------------------------------------------------
YEAR ENDED DECEMBER 31
----------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.05 0.05 0.05 0.05 0.05
-------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.05 0.05 0.05 0.05
-------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.05) (0.05) (0.05) (0.05) (0.05)
-------- ------- ------- ------- -------
Change in net asset value -- -- -- -- --
-------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= ======= =======
Total return(1) 4.77% 5.16% 5.22% 5.09% 5.32%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $146,314 $75,264 $56,599 $45,271 $48,515
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(2) 0.41% 0.41% 0.41% 0.40% 0.64%
Net investment income 4.71% 5.01% 5.09% 4.98% 5.20%
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 0.66%,
0.69%, 0.73%, 0.72% and 0.74% for the periods ended December 31, 1999, 1998,
1997, 1996 and 1995, respectively.
See Notes to Financial Statements 37
<PAGE>
PHOENIX-ZWEIG GOVERNMENT FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM
Q: HOW WOULD YOU DESCRIBE THE FUND'S INVESTMENT OBJECTIVE AND STRATEGY?
A: The Fund's primary focus is capital appreciation, with income as a secondary
objective. The Fund invests primarily in government and agency securities of all
maturities. Investors should keep in mind that although the Fund invests in
securities guaranteed by the U.S. government as to the timely payment of
interest and principal, shares of the Fund are not insured or guaranteed.
Q: HOW DO YOU SELECT SECURITIES FOR THE FUND?
A: Our research team spends an enormous amount of time looking for indicators
that will help us determine in which direction bond yields are headed. Our bond
model incorporates 75 separate indicators that measure bond market risk from day
to day. The model influences the duration -- or sensitivity to changes in
interest rates -- of the portfolio. Roughly speaking, duration corresponds to
how much the portfolio will gain or lose when bond yields change by one percent.
Thus, if our model is bullish on bonds, we will increase our duration.
Conversely, if we see increased risk in the market, we will shorten the
portfolio's duration.
Q: HOW DID THE FUND PERFORM OVER THE LAST YEAR?
A: At the beginning of 1999, the 30-year Treasury bond was yielding 5.10%. It
ended the year with a yield of 6.48%. This significant rise in yields led to the
worst calendar year for bonds since the 1920's. The total return for the Lehman
Brothers Long Treasury Bond Index(1) (LLBI) reflected this trend. The Index was
down (8.74)% for the year.
The Fund performed on par with its peer group of 178 funds. According to
Lipper, Inc., the average government bond fund declined (3.02)% for the period.
The Fund's Class A shares were down (2.58)%, Class B shares fell (3.23)%,
Class C shares declined (3.09)% and Class I shares lost (2.31)%. The Fund's
benchmark, the Lehman Brothers Government Bond Index(2), lost 2.24%. All
performance figures assume reinvestment of dividends and exclude the effect of
sales charges.
Although we cut back exposure dramatically throughout the year, ending with
a duration of 2.2 years, the damage done early in the year was difficult to
fully overcome. Bonds of every maturity experienced a terrible year in 1999.
There was really no place to hide.
Q: HOW IS THE FUND POSITIONED, GIVEN YOUR OUTLOOK?
A: At the moment, we are very cautious on the bond market and have further
reduced our portfolio duration to only 1.1 years. We see rising commodity
prices, wage price pressure, a growing economy, and a Federal Reserve that has
already tightened three times, as a stew of negatives for bonds. Furthermore,
the first quarter is a seasonally weak period for bonds. Flexibility is the key,
however. If our indicators turn around and our bond model turns positive, we
will step in and buy bonds.
JANUARY 18, 2000
(1) THE LEHMAN BROTHERS LONG TREASURY BOND INDEX IS AN UNMANAGED, COMMONLY USED
MEASURE OF LONG-MATURITY BOND MARKET TOTAL RETURN PERFORMANCE.
(2) THE LEHMAN BROTHERS GOVERNMENT BOND INDEX IS AN UNMANAGED, COMMONLY USED
MEASURE OF GOVERNMENT BOND MARKET TOTAL RETURN PERFORMANCE.
THE INDICES ARE NOT AVAILABLE FOR DIRECT INVESTMENT.
38
<PAGE>
Phoenix-Zweig Government Fund
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 12/31/99
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR 5 YEARS 10 YEARS TO 12/31/99 DATE
-------- ------- -------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Class A Shares at NAV(2) (2.58)% 5.45% 5.89% -- --
Class A Shares at POP(3) (7.21) 4.43 5.38 -- --
Class B Shares at NAV(2) (3.23) -- -- 4.37% 4/8/96
Class B Shares with CDSC(4) (6.95) -- -- 3.64 4/8/96
Class C Shares at NAV(2) (3.09) 4.95 -- 4.63 2/3/92
Class C Shares with CDSC(4) (3.09) 4.95 -- 4.63 2/3/92
Class I Shares at NAV(2) (2.31) -- -- 4.80 7/14/97
Lehman Brothers Government Bond Index(7) (2.24) 7.43 7.48 Note 6 Note 6
</TABLE>
<TABLE>
<C> <S>
(1) Total returns are historical and include changes in share
price and the reinvestment of both dividends and capital
gains distributions.
(2) "NAV" (Net Asset Value) total returns do not include the
effect of any sales charge.
(3) "POP" (Public Offering Price) total returns include the
effect of the maximum front-end 4.75% sales charge.
(4) CDSC (contingent deferred sales charge) is applied to
redemptions of certain classes of shares that do not have
a sales charge applied at the time of purchase. CDSC
charges for B shares decline from 5% to 0% over a five
year period. CDSC charges for C shares are 1.25% in the
first year and 0% thereafter.
(5) This chart illustrates POP returns on Class A Shares
since inception. Returns on Class B, Class C and Class I
Shares will vary due to differing sales charges.
(6) Index performance is 6.16% for Class B (since 4/30/96),
6.68% for Class C (since 2/29/92) and 4.61% for Class I
(since 7/31/97), respectively.
(7) The Lehman Brothers Government Bond Index is an
unmanaged, commonly used measure of government bond
market total return performance. The Index's performance
does not reflect sales charges.
All returns represent past performance which may not be
indicative of future performance. The investment return
and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth
more or less than their original cost.
</TABLE>
GROWTH OF $10,000 PERIODS ENDING 12/31
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PHOENIX-ZWEIG GOVERNMENT FUND CLASS A(5) LEHMAN GOVERNMENT BOND INDEX(7)
<S> <C> <C>
89 $9,525 $10,000
90 $10,105 $10,872
91 $11,554 $12,536
92 $12,077 $13,441
93 $13,327 $14,876
94 $12,950 $14,373
95 $14,741 $17,008
96 $14,680 $17,478
97 $15,915 $19,154
98 $17,334 $21,041
99 $16,887 $20,570
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
12/31/89 in Class A shares and reflects the maximum sales charge of 4.75% on the
initial investment. Performance assumes dividends and capital gains are
reinvested. The performance of other share classes will be greater or less than
that shown based on differences in inception dates, fees and sales charges.
SECTOR WEIGHTINGS 12/31/99
As a percentage of bond holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
U.S. Government 74%
Agency Mortgage-Backed 20%
Agency Non Mortgage-Backed 6%
</TABLE>
39
<PAGE>
Phoenix-Zweig Government Fund
INVESTMENTS AT DECEMBER 31, 1999
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------ --------------------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--38.0%
U.S. TREASURY BONDS--6.9%
U.S. Treasury Bonds 8.75%,
8/15/20....................... AAA $1,100 $ 1,332,344
U.S. Treasury Bonds 7.25%,
8/15/22....................... AAA 400 421,774
U.S. Treasury Bonds 5.25%,
2/15/29....................... AAA 700 579,497
--------------------
2,333,615
--------------------
U.S. TREASURY NOTES--31.1%
U.S. Treasury Notes 6.25%,
8/31/00....................... AAA 3,300 3,305,748
U.S. Treasury Notes 10.75%,
2/15/03....................... AAA 1,000 1,120,123
U.S. Treasury Notes 10.75%,
5/15/03....................... AAA 2,000 2,260,658
U.S. Treasury Notes 7.25%,
5/15/04....................... AAA 1,036 1,066,727
U.S. Treasury Notes 6.125%,
8/15/07....................... AAA 2,900 2,828,305
--------------------
10,581,561
--------------------
- --------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES
(IDENTIFIED COST $13,494,448) 12,915,176
- --------------------------------------------------------------------------
AGENCY MORTGAGE-BACKED SECURITIES--10.4%
Fannie Mae 8.25%, 12/18/00.... AAA 950 965,336
Freddie Mac 10.50%, 1/1/01.... AAA 3 2,670
Freddie Mac 5.125%,
10/15/08...................... AAA 2,700 2,368,461
Freddie Mac 10.50%, 6/1/11.... AAA 52 56,153
Freddie Mac 12%, 11/1/15...... AAA 99 112,474
GNMA 12.50%, 11/20/13......... AAA 8 9,095
GNMA 12%, 9/15/15............. AAA 18 20,711
GNMA 8%, 8/15/22.............. AAA 7 7,520
- --------------------------------------------------------------------------
TOTAL AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $3,854,453) 3,542,420
- --------------------------------------------------------------------------
AGENCY NON MORTGAGE-BACKED SECURITIES--3.0%
Private Export Funding Corp.
7.90%, 3/31/00................ AAA 1,000 1,005,000
- --------------------------------------------------------------------------
TOTAL AGENCY NON MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $998,730) 1,005,000
- --------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--51.4%
(IDENTIFIED COST $18,347,631) 17,462,596
- --------------------------------------------------------------------------
<CAPTION>
PAR
VALUE
(000) VALUE
------ --------------------
SHORT-TERM OBLIGATIONS--48.1%
<S> <C> <C> <C>
FEDERAL AGENCY SECURITIES--44.0%
Fannie Mae Discount Note
5.73%, 1/14/00................ $3,000 $ 2,993,792
Fannie Mae Discount Note
5.59%, 1/19/00................ 4,000 3,988,820
FMC Discount Note 5.67%,
1/20/00....................... 2,000 1,994,015
FMC Discount Note 5.75%,
1/25/00....................... 3,000 2,988,500
FC Discount Note 5.73%,
2/23/00....................... 3,000 2,974,693
--------------------
14,939,820
--------------------
REPURCHASE AGREEMENT--4.1%
Morgan Stanley & Co., Inc.
repurchase agreement, 2.75%,
dated 12/31/99 due 1/3/00,
repurchase price $1,413,324
collateralized by Fannie Mae
Bonds 5.50% to 6.50%, 8/1/13
to 2/1/14, market value
$1,455,547.................... 1,413 1,413,000
- --------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $16,352,820) 16,352,820
- --------------------------------------------------------------------------
TOTAL INVESTMENTS--99.5%
(IDENTIFIED COST $34,700,451) 33,815,416(a)
Cash and receivables, less liabilities--0.5% 162,007
--------------------
NET ASSETS--100.0% $ 33,977,423
====================
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $50,331 and gross
depreciation of $935,366 for federal income tax purposes. At December
31,1999, the aggregate cost of securities for federal income tax purpose
was $34,700,451.
40
See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Government Fund
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $34,700,451) $33,815,416
Cash 822
Receivables
Interest 331,621
Investment securities sold 857
Fund shares sold 132
Prepaid expenses 751
-----------
Total assets 34,149,599
-----------
LIABILITIES
Payables
Fund shares purchased 81,747
Transfer agent fee 36,117
Investment advisory fee 18,096
Distribution fee 12,265
Financial agent fee 6,708
Trustees' fee 1,077
Accrued expenses 16,166
-----------
Total liabilities 172,176
-----------
NET ASSETS $33,977,423
===========
NET ASSETS CONSIST OF:
Capital paid in on shares of
beneficial interest $43,540,437
Undistributed net investment income 28,333
Accumulated net realized loss (8,706,312)
Net unrealized depreciation (885,035)
-----------
NET ASSETS $33,977,423
===========
CLASS A
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $21,922,024) 2,256,384
Net asset value per share $9.72
Offering price per share
$9.72/(1-4.75%) $10.20
CLASS B
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $1,657,037) 169,356
Net asset value and offering price
per share $9.78
CLASS C
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $7,068,299) 729,299
Net asset value and offering price
per share $9.69
CLASS I
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $3,330,063) 341,785
Net asset value and offering price
per share $9.74
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 2,442,715
-----------
Total investment income 2,442,715
-----------
EXPENSES
Investment advisory fee 243,176
Distribution fee, Class A 76,778
Distribution fee, Class B 22,456
Distribution fee, Class C 71,412
Financial agent fee 28,396
Transfer agent 83,395
Registration 27,777
Custodian 14,832
Professional 10,077
Printing 7,245
Trustees 4,888
Miscellaneous 7,554
-----------
Total expenses 597,986
-----------
NET INVESTMENT INCOME 1,844,729
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized loss on securities (524,883)
Net change in unrealized
appreciation (depreciation) on
investments (2,530,574)
-----------
NET LOSS ON INVESTMENTS (3,055,457)
-----------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS $(1,210,728)
===========
</TABLE>
See Notes to Financial Statements 41
<PAGE>
Phoenix-Zweig Government Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
12/31/99 12/31/98
----------- -----------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 1,844,729 $ 2,066,058
Net realized gain (loss) (524,883) 832,801
Net change in unrealized appreciation (depreciation) (2,530,574) 474,221
----------- -----------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS (1,210,728) 3,373,080
----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (1,149,841) (1,445,311)
Net investment income, Class B (87,786) (59,632)
Net investment income, Class C (389,322) (504,015)
Net investment income, Class I (155,187) (85,307)
----------- -----------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (1,782,136) (2,094,265)
----------- -----------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (149,538 and 487,472 shares,
respectively) 1,518,826 5,104,178
Net asset value of shares issued from reinvestment of
distributions
(70,016 and 82,836 shares, respectively) 698,694 849,886
Cost of shares repurchased (814,413 and 500,204 shares,
respectively) (8,167,750) (5,154,850)
----------- -----------
Total (5,950,230) 799,214
----------- -----------
CLASS B
Proceeds from sales of shares (127,725 and 144,175 shares,
respectively) 1,295,107 1,519,106
Net asset value of shares issued from reinvestment of
distributions
(4,617 and 2,992 shares, respectively) 46,246 30,868
Cost of shares repurchased (172,012 and 57,793 shares,
respectively) (1,721,621) (599,173)
----------- -----------
Total (380,268) 950,801
----------- -----------
CLASS C
Proceeds from sales of shares (181,165 and 461,788 shares,
respectively) 1,821,289 4,782,752
Net asset value of shares issued from reinvestment of
distributions
(21,234 and 27,410 shares, respectively) 211,467 280,504
Cost of shares repurchased (611,333 and 362,588 shares,
respectively) (6,113,837) (3,712,306)
----------- -----------
Total (4,081,081) 1,350,950
----------- -----------
CLASS I
Proceeds from sales of shares (37,065 and 278,578 shares,
respectively) 371,104 2,921,512
Net asset value of shares issued from reinvestment of
distributions
(15,534 and 8,254 shares, respectively) 155,187 85,307
Cost of shares repurchased (5,638 and 95,877 shares,
respectively) (57,000) (1,000,000)
----------- -----------
Total 469,291 2,006,819
----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (9,942,288) 5,107,784
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS (12,935,152) 6,386,599
NET ASSETS
Beginning of period 46,912,575 40,525,976
----------- -----------
END OF PERIOD [INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) OF
$28,333 AND $821, RESPECTIVELY] $33,977,423 $46,912,575
=========== ===========
</TABLE>
42 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Government Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------
YEAR ENDED DECEMBER 31
----------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.44 $ 10.09 $ 9.81 $ 10.39 $ 9.63
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.46 0.53 0.52 0.53 0.52(1)
Net realized and unrealized gain (loss) (0.73) 0.35 0.28 (0.58) 0.77
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS (0.27) 0.88 0.80 (0.05) 1.29
------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.45) (0.53) (0.52) (0.53) (0.53)
------- ------- ------- ------- -------
Change in net asset value (0.72) 0.35 0.28 (0.58) 0.76
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 9.72 $ 10.44 $ 10.09 $ 9.81 $ 10.39
======= ======= ======= ======= =======
Total return(2) (2.58)% 8.91% 8.42% (0.42)% 13.84%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $21,922 $29,767 $28,062 $33,848 $42,207
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.35% 1.32% 1.36% 1.14 %(5) 1.26%
Net investment income 4.67% 5.09% 5.26% 5.25 % 5.22%
Portfolio turnover 183% 48% 128% 170 % 195%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------
FROM
YEAR ENDED DECEMBER 31 INCEPTION
------------------------------------ 4/8/96 TO
1999 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.52 $ 10.15 $ 9.86 $ 9.76
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.39 0.44 0.46 0.29
Net realized and unrealized gain (loss) (0.74) 0.37 0.26 0.11
------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS (0.35) 0.81 0.72 0.40
------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.39) (0.44) (0.43) (0.30)
------- ------- ------- -------
Change in net asset value (0.74) 0.37 0.29 0.10
------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 9.78 $ 10.52 $ 10.15 $ 9.86
======= ======= ======= =======
Total return(2) (3.23)% 8.20% 7.55% 4.16%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,657 $2,199 $1,215 $513
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.06% 2.02% 2.06% 1.84%(3)(6)
Net investment income 3.97% 4.39% 4.56% 4.55%(3)
Portfolio turnover 183% 48% 128% 170%
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charge is not reflected in total return calculation.
(3) Annualized.
(4) Not annualized.
(5) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expense to average net assets would have been 1.36% for
the period ended December 31, 1996.
(6) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 2.10% for
the period ended December 31, 1996.
See Notes to Financial Statements 43
<PAGE>
Phoenix-Zweig Government Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
----------------------------------------------------------------
YEAR ENDED DECEMBER 31
----------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.42 $ 10.08 $ 9.81 $ 10.38 $ 9.62
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.42 0.47 0.48 0.49 0.48(1)
Net realized and unrealized gain (loss) (0.74) 0.36 0.27 (0.58) 0.76
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS (0.32) 0.83 0.75 (0.09) 1.24
------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.41) (0.49) (0.48) (0.48) (0.48)
------- ------- ------- ------- -------
Change in net asset value (0.73) 0.34 0.27 (0.57) 0.76
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 9.69 $ 10.42 $ 10.08 $ 9.81 $ 10.38
======= ======= ======= ======= =======
Total return(2) (3.09)% 8.46% 7.86% (0.82)% 13.27%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $7,068 $11,859 $10,199 $14,330 $19,778
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.80% 1.77% 1.81% 1.59 %(5) 1.71%
Net investment income 4.22% 4.64% 4.81% 4.80 % 4.77%
Portfolio turnover 183% 48% 128% 170 % 195%
</TABLE>
<TABLE>
<CAPTION>
CLASS I
--------------------------------------
YEAR ENDED FROM
DECEMBER 31 INCEPTION
---------------------- 7/14/97 TO
1999 1998 12/31/97
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.48 $ 10.11 $ 9.88
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.49 0.55 0.26
Net realized and unrealized gain (loss) (0.74) 0.37 0.23
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS (0.25) 0.92 0.49
------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.49) (0.55) (0.26)
------- ------- -------
Change in net asset value (0.74) 0.37 0.23
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 9.74 $ 10.48 $ 10.11
======= ======= =======
Total return(2) (2.31)% 9.33% 5.01%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $3,330 $3,088 $1,050
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.06% 1.02% 1.06%(3)
Net investment income 4.98% 5.39% 5.56%(3)
Portfolio turnover 183% 48% 128%
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charge is not reflected in total return calculation.
(3) Annualized.
(4) Not annualized.
(5) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.81% for
the period ended December 31, 1996.
44 See Notes to Financial Statements
<PAGE>
PHOENIX-ZWEIG GROWTH & INCOME FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM
Q: HOW WOULD YOU DESCRIBE THE FUND'S INVESTMENT OBJECTIVE AND STRATEGY?
A: In managing the Fund, we focus on capital appreciation through a flexible
approach to investing in growth stocks and high dividend-paying stocks. We may
also invest up to 15% of net assets in foreign securities, and investors should
keep in mind 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 FOR THE 12 MONTHS ENDED DECEMBER 31, 1999?
A: Class A shares were up 1.09%, Class B shares gained 0.42%, Class C shares
rose 0.45% and Class I shares returned 1.46%. The S&P MidCap 400 Value Index
returned 2.32%, and the S&P 500 Index(2) gained 21.14%. All performance figures
assume reinvestment of dividends and exclude the effect of sales charges.
Clearly, mid-cap stocks had a difficult year, while the growth-oriented S&P 500
dominated the field.
Q: HOW WAS THE FUND POSITIONED OVER THE LAST YEAR?
A: The Fund began the year with an equity exposure of 84%. Throughout the year,
our proprietary models became more cautionary. As a result, we gradually and
systematically reduced the equity exposure, ending the year with a 55%
weighting. Our monetary indicators weakened mainly due to increases in interest
rates and the slight increase in inflation. Our sentiment indicators, which
consider high investor optimism a negative, also weakened, as investor euphoria
grew with the rise in Internet stocks, technology, and the hot IPO market.
Q: WHAT FACTORS MOST AFFECTED THE PERFORMANCE?
A: This was a difficult year for most quantitative investment disciplines. The
narrowness of the market made it almost impossible for well-diversified
portfolios to outperform the index. The stocks that performed well in 1999 were
clustered in a few industries and traded at historically high valuations. For
example, while the S&P 500 Index returned 21.14% in 1999, the top 10 stocks
accounted for 64.3% of the gain. Excluding technology stocks, the S&P returned
only 3.1% for the year.
Investors overlooked the high dividend-yield segment of the market, which
constitutes 50% of the Fund. Further, the growth portion of the Fund, which
takes valuation into account, did not hold many of the fastest-growing stocks
that dominated market returns. The enormous price-to-earnings ratios of these
stocks disqualified them from our research.
Q: WHAT IS YOUR CURRENT OUTLOOK?
A: Presently, our research calls for a cautious near-term outlook. If interest
rates and inflation continue to rise, these trends could put continued downward
pressure on stocks. We constantly monitor the macroeconomic environment,
however, and are poised to make changes in our asset allocation as appropriate.
JANUARY 18, 2000
(1) THE S&P MIDCAP 400 VALUE INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF
MID-CAP, VALUE-ORIENTED STOCK TOTAL RETURN PERFORMANCE.
(2) THE S&P 500 INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF STOCK MARKET
TOTAL RETURN PERFORMANCE.
THE INDICES ARE NOT AVAILABLE FOR DIRECT INVESTMENT.
45
<PAGE>
Phoenix-Zweig Growth & Income Fund
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 12/31/99
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR TO 12/31/99 DATE
------ ----------- ------------
<S> <C> <C> <C>
Class A Shares at NAV(2) 1.09% 6.93% 11/26/96
Class A Shares at POP(3) (4.47) 4.99 11/26/96
Class B Shares at NAV(2) 0.42 6.19 11/26/96
Class B Shares with CDSC(4) (3.21) 5.33 11/26/96
Class C Shares at NAV(2) 0.45 6.19 11/26/96
Class C Shares with CDSC(4) 0.45 6.19 11/26/96
Class I Shares at NAV(2) 1.46 7.25 11/26/96
S&P 500 Index(6) 21.14 25.96 11/26/96
</TABLE>
(1) Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
(2) "NAV" (Net Asset Value) total returns do not include the effect of any
sales charge.
(3) "POP" (Public Offering Price) total returns include the effect of the
maximum front-end 5.50% sales charge.
(4) CDSC (contingent deferred sales charge) is applied to redemptions of
certain classes of shares that do not have a sales charge applied at the
time of purchase. CDSC charges for B shares decline from 5% to 0% over a
five year period. CDSC charges for C shares are 1.25% in the first year and
0% thereafter.
(5) This chart illustrates POP returns on Class A Shares and CDSC returns for
Class B and Class C Shares since inception.
(6) The S&P 500 Index is an unmanaged, commonly used measure of stock market
total return performance. The Index's performance does not reflect sales
charges.
All returns represent past performance which may not be indicative of
future performance. The investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
GROWTH OF $10,000 PERIODS ENDING 12/31
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PHOENIX-ZWEIG GROWTH PHOENIX-ZWEIG GROWTH PHOENIX-ZWEIG GROWTH S&P 500 INDEX (6)
& INCOME FUND CLASS A(5) & INCOME FUND CLASS B(5) & INCOME FUND CLASS C(5)
<S> <C> <C> <C> <C>
11/26/96 $9,450 $10,000 $10,000 $10,000
96 $9,495 $10,041 $10,050 $9,821
97 $11,690 $12,279 $12,277 $13,099
98 $11,502 $11,992 $11,990 $16,866
99 $11,827 $11,743 $12,044 $20,431
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
11/26/96 (inception of the Fund) in Class A, B and C shares. The total return
for Class A shares reflects the maximum sales charge of 5.50% on the initial
investment. The total return for Class B shares reflects the CDSC charges which
decline from 5% to 0% over a five year period. The total return for Class C
shares reflects the CDSC charges which are 1.25% in the first year and 0%
thereafter. The performance of Class I shares will be greater or less than that
shown based on differences in fees. Performance assumes dividends and capital
gains are reinvested.
SECTOR WEIGHTINGS 12/31/99
As a percentage of equity holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 39%
Financials 24%
Consumer Cyclicals 11%
Capital Goods 8%
Utilities 5%
Basic Materials 3%
Other 10%
</TABLE>
46
<PAGE>
Phoenix-Zweig Growth & Income Fund
TEN LARGEST HOLDINGS AT DECEMBER 31, 1999 (AS A PERCENTAGE OF TOTAL NET ASSETS)
<TABLE>
<C> <S> <C>
1. Tiffany & Co. 1.0%
SPECIALTY RETAILER OF JEWELERY AND GIFT ITEMS
2. Teradyne, Inc. 0.9%
MANUFACTURER OF ELECTRONIC SYSTEMS AND SOFTWARE
3. USFreightways Corp. 0.9%
TRUCKER OF GENERAL COMMODITIES
4. VERITAS Software Corp. 0.8%
A MAKER OF COMPUTER STORAGE-MANAGEMENT PRODUCTS
5. GPU, Inc. 0.8%
UTILITY HOLDING COMPANY BASED IN NEW JERSEY AND PENNSYLVANIA
6. QLogic Corp. 0.7%
MARKETS SYSTEM-LEVEL INTEGRATED CIRCUITS
7. Commscope, Inc. 0.7%
ELECTRONIC CABLE MANUFACTURER
8. Yahoo!, Inc. 0.6%
FIRST ONLINE NAVIGATIONAL GUIDE TO THE WORLD WIDE WEB
9. Wal-Mart Stores, Inc. 0.5%
ONE OF THE LARGEST U.S. DISCOUNT RETAILERS
10. Travelers Property Casualty Corp. Class A 0.5%
PROPERTY AND CASUALTY INSURANCE PROVIDER
</TABLE>
INVESTMENTS AT DECEMBER 31, 1999
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMON STOCKS--51.8%
AEROSPACE/DEFENSE--0.4%
AAR Corp................................ 1,000 $ 17,937
Cordant Technologies, Inc............... 800 26,400
Goodrich (B.F) Co. (The)................ 1,000 27,500
------------
71,837
------------
AGRICULTURAL PRODUCTS--0.1%
Universal Corp.......................... 1,100 25,094
AIR FREIGHT--0.2%
Expeditors International of Washington,
Inc..................................... 1,000 43,812
AIRLINES--0.0%
America West Holdings Corp. Class
B(b).................................... 100 2,075
AUTO PARTS & EQUIPMENT--0.7%
Arvin Industries, Inc................... 1,000 28,375
Borg-Warner Automotive, Inc............. 600 24,300
Cooper Tire & Rubber Co................. 1,700 26,456
Mark IV Industries, Inc................. 1,400 24,762
Superior Industries International,
Inc..................................... 800 21,450
TRW, Inc................................ 500 25,969
------------
151,312
------------
BANKS (MAJOR REGIONAL)--2.7%
AmSouth BanCorp......................... 2,000 38,625
Bank of New York Co., Inc. (The)........ 1,000 40,000
Fifth Third Bancorp..................... 800 58,700
Huntington Bancshares, Inc.............. 1,700 40,587
KeyCorp................................. 1,800 39,825
Mellon Financial Corp................... 1,100 37,469
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
BANKS (MAJOR REGIONAL)--CONTINUED
Northern Trust Corp..................... 600 $ 31,800
Regions Financial Corp.................. 1,600 40,200
Republic New York Corp.................. 500 36,000
SouthTrust Corp......................... 1,200 45,375
State Street Corp....................... 800 58,450
SunTrust Banks, Inc..................... 600 41,287
Wells Fargo Co.......................... 1,000 40,437
------------
548,755
------------
BANKS (MONEY CENTER)--0.2%
Bank of America Corp.................... 800 40,150
BANKS (REGIONAL)--1.3%
Compass Bancshares, Inc................. 1,800 40,162
First Tennessee National Corp........... 1,400 39,900
Marshall & Ilsley Corp.................. 600 37,687
National Commerce Bancorporation........ 1,700 38,569
Old Kent Financial Corp................. 1,100 38,912
UnionBanCal Corp........................ 1,000 39,437
Zions Bancorporation.................... 600 35,512
------------
270,179
------------
BROADCASTING (TELEVISION, RADIO & CABLE)--0.2%
Radio One, Inc.(b)...................... 500 46,000
BUILDING MATERIALS--0.3%
Lafarge Corp.(c)........................ 900 24,862
TJ International, Inc................... 700 29,400
------------
54,262
------------
</TABLE>
See Notes to Financial Statements 47
<PAGE>
Phoenix-Zweig Growth & Income Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
CHEMICALS (SPECIALTY)--0.3%
Fuller (H.B.) Co........................ 200 $ 11,187
Lubrizol Corp. (The).................... 900 27,787
Schulman (A.), Inc...................... 1,200 19,575
------------
58,549
------------
COMMUNICATIONS EQUIPMENT--2.8%
ADTRAN, Inc.(b)......................... 700 36,006
Advanced Fibre Communications,
Inc.(b)................................. 1,300 58,094
Anixter International, Inc.(b).......... 100 2,062
Aspect Communications Corp.(b).......... 1,500 58,687
Cable Design Technologies Corp.(b)...... 100 2,300
California Amplifier, Inc.(b)........... 1,400 36,837
Carrier Access Corp.(b)................. 600 40,387
CommScope, Inc.(b)...................... 3,400 137,062
Ditech Communications Corp.(b).......... 300 28,050
Harmonic, Inc.(b)....................... 700 66,456
Ortel Corp.(b).......................... 500 60,000
Scientific-Atlanta, Inc................. 700 38,937
------------
564,878
------------
COMPUTERS (HARDWARE)--0.6%
Aironet Wireless Communications,
Inc.(b)................................. 600 40,069
Ancor Communications, Inc.(b)........... 400 27,150
Emulex Corp.(b)......................... 400 45,000
------------
112,219
------------
COMPUTERS (NETWORKING)--0.2%
Network Appliance, Inc.(b).............. 500 41,531
COMPUTERS (PERIPHERALS)--0.2%
Advanced Digital Information Corp.(b)... 1,000 48,625
COMPUTERS (SOFTWARE & SERVICES)--8.9%
ACTV, Inc.(b)........................... 1,100 50,256
Adobe Systems, Inc...................... 600 40,350
America Online, Inc.(b)................. 600 45,262
Art Technology Group, Inc.(b)........... 500 65,000
Aspect Development, Inc.(b)............. 500 34,250
BroadVision, Inc.(b).................... 400 68,025
Clarify, Inc. (b)....................... 400 50,400
F5 Networks, Inc.(b).................... 300 34,200
Geoworks Corp.(b)....................... 2,800 46,900
ISS Group, Inc.(b)...................... 1,000 71,125
Inet Technolgies, Inc.(b)............... 600 41,925
Informix Corp.(b)....................... 100 1,137
InfoSpace.com, Inc.(b).................. 300 64,200
Interliant, Inc.(b)..................... 1,300 33,800
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)--CONTINUED
Legato Systems, Inc.(b)................. 700 $ 48,169
Mercury Computer Systems, Inc.(b)....... 1,400 49,000
Microsoft Corp.(b)...................... 800 93,400
Network Solutions, Inc.(b).............. 200 43,512
ONYX Software Corp.(b).................. 1,000 37,000
Oracle Corp.(b)......................... 300 33,619
Razorfish, Inc.(b)...................... 600 57,075
Remedy Corp.(b)......................... 1,100 52,112
Sapient Corp.(b)........................ 400 56,375
Siebel Systems, Inc. (b)................ 900 75,600
Software.com, Inc.(b)................... 600 57,600
Sybase, Inc.(b)......................... 100 1,700
TIBCO Software, Inc.(b)................. 300 45,900
VERITAS Software Corp.(b)............... 1,200 171,750
VeriSign, Inc.(b)....................... 300 57,225
WebTrends Corp.(b)...................... 700 56,700
Yahoo!, Inc.(b)......................... 300 129,806
i2 Technologies, Inc.(b)................ 300 58,500
pcOrder.com, Inc. (b)................... 900 45,900
------------
1,817,773
------------
CONSUMER (JEWELRY, NOVELTIES & GIFTS)--0.0%
Fossil, Inc.(b)......................... 50 1,156
CONSUMER FINANCE--0.3%
AmeriCredit Corp.(b).................... 100 1,850
MBNA Corp............................... 2,100 57,225
PMI Group, Inc. (The)................... 50 2,441
Providian Financial Corp................ 50 4,553
------------
66,069
------------
CONTAINERS (METAL & GLASS)--0.1%
Ball Corp............................... 700 27,562
DISTRIBUTORS (FOOD & HEALTH)--0.1%
SUPERVALU, Inc.......................... 1,471 29,420
ELECTRIC COMPANIES--2.6%
Avista Corp............................. 1,600 24,700
Constellation Energy Group.............. 700 20,300
DTE Energy Co........................... 700 21,962
Edison International.................... 900 23,569
Energy East Corp........................ 1,800 37,462
Entergy Corp............................ 900 23,175
FirstEnergy Corp........................ 800 18,150
GPU, Inc.(c)............................ 5,500 164,656
Northeast Utilities..................... 1,900 39,069
Public Service Company of New Mexico.... 2,600 42,250
</TABLE>
48 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Growth & Income Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
ELECTRIC COMPANIES--CONTINUED
Public Service Enterprise Group, Inc.... 800 $ 27,850
Texas Utilities Co...................... 700 24,894
Unicom Corp............................. 700 23,450
UtiliCorp United, Inc................... 1,250 24,297
Wisconsin Energy Corp................... 900 17,325
------------
533,109
------------
ELECTRICAL EQUIPMENT--2.0%
AVX Corp................................ 1,200 59,925
Advanced Energy Industries, Inc.(b)..... 900 44,325
American Power Conversion Corp.(b)...... 2,700 71,212
C-COR.net Corp.(b)...................... 700 53,637
Flextronics International Ltd.(b)....... 1,200 55,200
Molex, Inc.............................. 700 39,681
Rockwell International Corp............. 500 23,937
Sensormatic Electronics Corp.(b)........ 100 1,744
Zomax, Inc.(b).......................... 1,200 54,300
------------
403,961
------------
ELECTRONICS (INSTRUMENTATION)--0.7%
Newport Corp............................ 900 41,175
Optical Coating Laboratory, Inc......... 200 59,200
Photon Dynamics, Inc.(b)................ 1,000 38,750
------------
139,125
------------
ELECTRONICS (SEMICONDUCTORS)--4.8%
Adaptec, Inc.(b)........................ 700 34,912
Amkor Technology, Inc.(b)............... 1,900 53,675
Analog Devices, Inc.(b)................. 600 55,800
Applied Micro Circuits Corp.(b)......... 800 101,800
Broadcom Corp. Class A(b)............... 200 54,475
Cree Research, Inc.(b).................. 700 59,762
Dallas Semiconductor Corp............... 700 45,106
E-Tek Dynamics, Inc.(b)................. 500 67,312
Intel Corp.............................. 500 41,156
Linear Technology Corp.................. 600 42,937
Maxim Integrated Products, Inc.(b)...... 1,600 75,500
Microchip Technology, Inc.(b)........... 1,200 82,125
QLogic Corp.(c)......................... 900 143,887
Semtech Corp.(b)........................ 700 36,487
Xilinx, Inc.(b)......................... 1,800 81,844
------------
976,778
------------
ENTERTAINMENT--0.2%
Time Warner, Inc........................ 600 43,463
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
EQUIPMENT (SEMICONDUCTOR)--1.2%
Cymer, Inc.(b).......................... 800 $ 36,800
Helix Technology Corp.(b)............... 800 35,850
Teradyne, Inc.(c)....................... 2,700 178,200
------------
250,850
------------
FINANCIAL (DIVERSIFIED)--0.9%
Ambac Financial Group, Inc.............. 300 15,656
CIT Group, Inc. (The) Class A........... 1,100 23,238
Citigroup, Inc.......................... 750 41,672
Fannie Mae.............................. 600 37,463
Financial Security Assurance Holdings
Ltd.(c)................................. 500 26,063
Freddie Mac............................. 800 37,650
------------
181,742
------------
FOODS--0.2%
Hormel Foods Corp....................... 1,000 40,625
IBP, Inc................................ 100 1,800
International Home Foods, Inc.(b)....... 100 1,738
------------
44,163
------------
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--0.0%
Harrah's Entertainment, Inc.(b)......... 100 2,644
Station Casinos, Inc.(b)................ 100 2,244
------------
4,888
------------
GOLD & PRECIOUS METALS MINING--0.1%
Homestake Mining Co..................... 3,500 27,344
HEALTH CARE (DIVERSIFIED)--0.4%
Allergan, Inc........................... 1,300 64,675
Mallinckrodt, Inc....................... 800 25,450
------------
90,125
------------
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.2%
Pfizer, Inc............................. 1,200 38,925
HEALTH CARE (GENERIC AND OTHER)--0.2%
Jones Pharma, Inc....................... 900 39,094
HEALTH CARE (MANAGED CARE)--0.1%
Aetna, Inc.............................. 500 27,906
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.3%
Affymetrix, Inc.(b)..................... 400 67,875
HOMEBUILDING--0.3%
Kaufman and Broad Home Corp............. 1,100 26,606
</TABLE>
See Notes to Financial Statements 49
<PAGE>
Phoenix-Zweig Growth & Income Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
HOMEBUILDING--CONTINUED
Pulte Corp.............................. 1,200 $ 27,000
------------
53,606
------------
HOUSEHOLD FURNISHINGS & APPLIANCES--0.2%
Furniture Brands International,
Inc.(b)................................. 100 2,200
U.S. Industries, Inc.................... 1,400 19,600
Whirlpool Corp.......................... 400 26,025
------------
47,825
------------
HOUSEHOLD PRODUCTS (NON-DURABLE)--0.0%
Church & Dwight Co., Inc................ 100 2,669
HOUSEWARES--0.0%
Tupperware Corp......................... 100 1,694
INSURANCE (MULTI-LINE)--0.3%
American International Group, Inc....... 400 43,250
Loews Corp.............................. 400 24,275
------------
67,525
------------
INSURANCE (PROPERTY-CASUALTY)--0.8%
Enhance Financial Services Group,
Inc..................................... 1,500 24,375
Fremont General Corp.................... 400 2,950
HCC Insurance Holdings, Inc............. 1,200 15,825
St. Paul Cos., Inc. (The)............... 700 23,581
Travelers Property Casualty Corp. Class
A....................................... 3,000 102,750
------------
169,481
------------
INSURANCE BROKERS--0.3%
Aon Corp................................ 1,400 56,000
INVESTMENT BANKING/BROKERAGE--1.1%
AXA Financial, Inc...................... 1,200 40,650
Bear Stearns Cos., Inc. (The)........... 2,124 90,801
Lehman Brothers Holdings, Inc........... 1,200 101,625
------------
233,076
------------
IRON & STEEL--0.1%
AK Steel Holding Corp................... 1,400 26,425
LEISURE TIME (PRODUCTS)--0.1%
Brunswick Corp.......................... 1,100 24,475
MACHINERY (DIVERSIFIED)--0.3%
Manitowoc Co., Inc. (The)............... 50 1,700
Milacron, Inc........................... 1,700 26,138
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
MACHINERY (DIVERSIFIED)--CONTINUED
Tecumseh Products Co. Class A........... 500 $ 23,594
------------
51,432
------------
MANUFACTURING (DIVERSIFIED)--0.9%
Danaher Corp............................ 900 43,425
GenCorp, Inc............................ 1,800 17,775
Honeywell International, Inc............ 700 40,381
Johnson Controls, Inc................... 700 39,813
Trinity Industries, Inc................. 900 25,594
United Dominion Industries Ltd.......... 1,300 25,919
------------
192,907
------------
MANUFACTURING (SPECIALIZED)--0.3%
CTS Corp................................ 600 45,225
Donaldson Co., Inc...................... 100 2,406
United Stationers, Inc.(b).............. 100 2,856
------------
50,487
------------
METALS MINING--0.2%
Freeport-McMoRan Copper & Gold,
Inc.(b)................................. 2,100 44,363
NATURAL GAS--0.1%
Equitable Resources, Inc................ 700 23,363
OFFICE EQUIPMENT & SUPPLIES--0.1%
Wallace Computer Services, Inc.......... 900 14,963
OIL & GAS (EXPLORATION & PRODUCTION)--0.3%
Apache Corp............................. 700 25,856
Kerr-McGee Corp......................... 400 24,800
Pioneer Natural Resources Co.(b)........ 200 1,788
Vintage Petroleum, Inc.(b).............. 100 1,206
------------
53,650
------------
OIL (DOMESTIC INTEGRATED)--0.1%
Amerada Hess Corp....................... 400 22,700
Occidental Petroleum Corp............... 100 2,163
------------
24,863
------------
PAPER & FOREST PRODUCTS--0.5%
Boise Cascade Corp...................... 700 28,350
Georgia-Pacific Group................... 500 25,375
Louisiana-Pacific Corp.................. 1,300 18,525
Potlatch Corp........................... 600 26,775
------------
99,025
------------
</TABLE>
50 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Growth & Income Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
PHOTOGRAPHY/IMAGING--0.1%
IKON Office Solutions, Inc.............. 4,100 $ 27,931
REITS--4.4%
AMB Property Corp....................... 300 5,981
Apartment Investment & Management Co.... 700 27,869
Arden Realty, Inc....................... 1,200 24,075
Brandywine Realty Trust................. 1,500 24,563
CBL & Associates Properties, Inc........ 1,300 26,813
Cabot Industrial Trust.................. 500 9,188
Camden Property Trust................... 500 13,688
CarrAmerica Realty Corp................. 1,300 27,463
Colonial Properties Trust............... 1,000 23,188
Crescent Real Estate Equities Co........ 4,600 84,525
Duke-Weeks Realty Corp.................. 3,100 60,450
Equity Office Properties Trust.......... 1,000 24,625
Equity Residential Properties Trust..... 2,000 85,375
Federal Realty Investment Trust......... 500 9,406
First Industrial Realty Trust, Inc...... 900 24,694
Franchise Finance Corporation of
America................................. 1,100 26,331
General Growth Properties, Inc.......... 500 14,000
Highwoods Properties, Inc............... 1,100 25,575
Kilroy Realty Corp...................... 1,100 24,200
Liberty Property Trust.................. 1,100 26,675
Macerich Co. (The)...................... 700 14,569
Mack-Cali Realty Corp................... 400 10,425
MeriStar Hospitality Corp............... 1,500 24,000
ProLogis Trust.......................... 4,570 87,973
Public Storage, Inc..................... 1,100 24,956
Reckson Associates Realty Corp.......... 1,200 24,600
Rouse Co. (The)......................... 1,200 25,500
Spieker Properties, Inc................. 700 25,506
Storage USA, Inc........................ 800 24,200
Taubman Centers, Inc.................... 1,900 20,425
United Dominion Realty Trust, Inc....... 2,500 24,688
------------
895,526
------------
RESTAURANTS--0.1%
Brinker International, Inc.(b).......... 100 2,400
CEC Entertainment, Inc.(b).............. 100 2,838
Darden Restaurants, Inc................. 100 1,813
Jack in the Box, Inc.(b)................ 100 2,069
Ruby Tuesday, Inc....................... 100 1,819
------------
10,939
------------
RETAIL (BUILDING SUPPLIES)--0.3%
Home Depot, Inc. (The).................. 600 41,138
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
RETAIL (BUILDING SUPPLIES)--CONTINUED
Hughes Supply, Inc...................... 1,050 $ 22,641
------------
63,779
------------
RETAIL (DISCOUNTERS)--0.0%
Ross Stores, Inc........................ 100 1,794
RETAIL (GENERAL MERCHANDISE)--0.5%
Wal-Mart Stores, Inc.................... 1,500 103,688
RETAIL (HOME SHOPPING)--0.4%
CDW Computer Centers, Inc.(b)........... 1,100 86,488
RETAIL (SPECIALTY)--1.1%
Linens 'n Things, Inc.(b)............... 100 2,963
Pep Boys-Manny, Moe & Jack (The)........ 2,100 19,163
Tiffany & Co............................ 2,300 205,275
------------
227,401
------------
RETAIL (SPECIALTY-APPAREL)--0.8%
American Eagle Outfitters, Inc.(b)...... 1,800 81,000
Burlington Coat Factory Warehouse
Corp.................................... 100 1,388
Pacific Sunwear of California,
Inc.(b)................................. 2,600 83,688
------------
166,076
------------
SAVINGS & LOAN COMPANIES--0.7%
Bank United Corp. Class A............... 600 16,350
Dime Bancorp, Inc....................... 1,600 24,200
Golden State Bancorp, Inc.(b)........... 100 1,725
GreenPoint Financial Corp............... 1,600 38,100
Sovereign Bancorp, Inc.................. 5,400 40,247
Webster Financial Corp.................. 1,100 25,919
------------
146,541
------------
SERVICES (COMMERCIAL & CONSUMER)--0.6%
Braun Consulting, Inc.(b)............... 700 50,050
Diamond Technology Partners, Inc.(b).... 300 25,781
Macrovision Corp.(b).................... 500 37,000
------------
112,831
------------
SERVICES (COMPUTER SYSTEMS)--0.3%
Lightbridge, Inc.(b).................... 1,900 52,725
SERVICES (DATA PROCESSING)--0.2%
Paychex, Inc............................ 900 36,000
SHIPPING--0.3%
Alexander & Baldwin, Inc................ 400 9,125
</TABLE>
See Notes to Financial Statements 51
<PAGE>
Phoenix-Zweig Growth & Income Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
SHIPPING--CONTINUED
Royal Caribbean Cruises Ltd............. 900 $ 44,381
------------
53,506
------------
SPECIALTY PRINTING--0.3%
Banta Corp.............................. 1,100 24,819
Topps Co., Inc. (The)(b)................ 2,800 29,050
------------
53,869
------------
STRIP CENTERS--0.1%
Developers Diversified Realty Corp...... 1,500 19,313
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.3%
Powerwave Technologies, Inc.(b)......... 900 52,538
TELECOMMUNICATIONS (LONG DISTANCE)--0.3%
Network Plus Corp.(b)................... 2,400 50,400
TEXTILES (APPAREL)--0.0%
Quicksilver, Inc.(b).................... 100 1,550
Tommy Hilfiger Corp.(b)................. 100 2,331
------------
3,881
------------
TEXTILES (HOME FURNISHINGS)--0.3%
Springs Industries, Inc. Class A........ 1,300 51,919
TRUCKERS --0.9%
USFreightways Corp...................... 3,700 177,138
TRUCKS & PARTS--0.3%
Cummins Engine Co., Inc................. 600 28,988
PACCAR, Inc.(c)......................... 600 26,588
------------
55,576
------------
- --------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $9,979,104) 10,578,294
- --------------------------------------------------------------------
FOREIGN COMMON STOCKS--3.2%
ALUMINUM--0.5%
Alcan Aluminum Ltd. (Canada)............ 2,200 90,612
AUTO PARTS & EQUIPMENT--0.1%
Magna International, Inc. (Canada)...... 600 25,425
COMMUNICATIONS EQUIPMENT--0.3%
AudioCodes Ltd. (Israel)(b)............. 700 64,400
COMPUTERS (SOFTWARE & SERVICES)--1.1%
Business Objects SA Sponsored ADR
(France)(b)............................. 400 53,450
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)--CONTINUED
IONA Technologies PLC ADR
(Ireland)(b)............................ 1,400 $ 76,300
Infosys Technologies Ltd. Sponsored ADR
(India)................................. 200 66,000
Internet Gold (Israel)(b)............... 1,700 37,825
------------
233,575
------------
ELECTRONICS (SEMICONDUCTORS)--0.2%
ARM Holdings PLC Sponsored ADR (United
Kingdom)(b)............................. 200 38,300
HOMEBUILDING--0.1%
Trizec Hahn Corp. (Canada).............. 1,400 23,625
MANUFACTURING (DIVERSIFIED)--0.2%
Gucci Group (Netherlands)............... 300 34,350
OIL (INTERNATIONAL INTEGRATED)--0.1%
YPF Sociedad Anonima Sponsored ADR
(Argentina)............................. 500 18,469
RAILROADS--0.3%
Canadian National Railway Co.
(Canada)................................ 900 23,681
Canadian Pacific Ltd. (Canada).......... 1,800 38,813
------------
62,494
------------
TELECOMMUNICATIONS (LONG DISTANCE)--0.3%
COLT Telecom Group PLC Sponsored ADR
(United Kingdom)(b)..................... 300 61,200
- --------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $591,136) 652,450
- --------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--55.0%
(IDENTIFIED COST $10,570,240) 11,230,744
- --------------------------------------------------------------------
<CAPTION>
PAR
VALUE
(000)
--------
SHORT-TERM OBLIGATIONS--45.0%
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--0.5%
U.S. Treasury Bill 5.05%, 2/3/00(c)..... $ 100 99,537
FEDERAL AGENCY SECURITIES--29.3%
FHLB Discount Corp. 5.73%, 1/14/00...... 3,000 2,993,793
Fannie Mae Discount Note 5.73%,
1/14/00................................. 3,000 2,993,792
------------
5,987,585
------------
</TABLE>
52 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Growth & Income Fund
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
-------- ------------
<S> <C> <C> <C>
REPURCHASE AGREEMENT--15.2%
Morgan Stanley & Co., Inc. repurchase
agreement, 2.75%, dated 12/31/99 due
1/3/00, repurchase price $3,122,715
collateralized by Fannie Mae Bonds 6.50%
to 10%, 5/1/12 - 8/1/29, market value
$3,216,510.............................. $ 3,122 $ 3,122,000
- --------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $9,209,122) 9,209,122
- --------------------------------------------------------------------
TOTAL INVESTMENTS--100.0%
(IDENTIFIED COST $19,779,362) 20,439,866(a)
Cash and receivables, less liabilities--(0.0%) (7,354)
------------
NET ASSETS--100.0% $ 20,432,512
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $1,195,804 and gross
depreciation of $770,178 for federal income tax purposes. At December
31,1999, the aggregate cost of securities for federal income tax purposes
was $20,014,240.
(b) Non-income producing.
(c) All or a portion segregated as collateral.
See Notes to Financial Statements
53
<PAGE>
Phoenix-Zweig Growth & Income Fund
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS
Investment securities at value,
exclusive of repurchase agreement
(Identified cost $16,657,362) $17,317,866
Repurchase agreement, at value
(Identified cost $3,122,000) 3,122,000
Cash 7,273
Receivables
Fund shares sold 71,424
Dividends and interest 25,810
Deferred organization expenses 9,785
Prepaid expenses and other assets 1,462
-----------
Total assets 20,555,620
-----------
LIABILITIES
Payables
Fund shares repurchased 37,790
Transfer agent fee 24,858
Distribution fee 13,831
Investment advisory fee 12,978
Custodian fee 11,405
Professional fee 10,258
Financial agent fee 3,021
Trustees' fee 1,046
Accrued expenses 7,921
-----------
Total liabilities 123,108
-----------
NET ASSETS $20,432,512
===========
NET ASSETS CONSIST OF:
Capital paid in on shares of
beneficial interest $20,404,448
Distributions in excess of net
investment income (17,114)
Accumulated net realized loss (624,001)
Net unrealized appreciation 669,179
-----------
NET ASSETS $20,432,512
===========
CLASS A
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $3,393,115) 279,656
Net asset value per share $12.13
Offering price per share
$12.13/(1-5.50%) $12.84
CLASS B
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $9,684,225) 797,551
Net asset value and offering price
per share $12.14
CLASS C
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $5,506,793) 453,083
Net asset value and offering price
per share $12.15
CLASS I
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $1,848,379) 151,809
Net asset value and offering price
per share $12.18
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 479,995
Dividend 415,016
Foreign taxes withheld (1,207)
----------
Total investment income 893,804
----------
EXPENSES
Investment advisory fee 214,196
Distribution fee, Class A 15,343
Distribution fee, Class B 123,882
Distribution fee, Class C 92,659
Financial agent fee 20,031
Custodian 69,882
Transfer agent 58,651
Registration 33,425
Professional 10,824
Amortization of deferred organization
expenses 5,139
Printing 4,942
Trustees 4,594
Miscellaneous 8,784
----------
Total expenses 662,352
----------
NET INVESTMENT INCOME 231,452
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain on securities 973,288
Net realized gain on futures
contracts 303,893
Net change in unrealized appreciation
(depreciation) on investments (1,869,768)
----------
NET LOSS ON INVESTMENTS (592,587)
----------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ (361,135)
==========
</TABLE>
54 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Growth & Income Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
12/31/99 12/31/98
----------- -----------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 231,452 $ 124,963
Net realized gain (loss) 1,277,181 (567,944)
Net change in unrealized appreciation (depreciation) (1,869,768) (1,295,279)
----------- -----------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS (361,135) (1,738,260)
----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (66,509) (67,615)
Net investment income, Class B (85,176) (24,563)
Net investment income, Class C (39,823) (21,813)
Net investment income, Class I (35,875) (18,784)
Net realized gains, Class A (302,474) --
Net realized gains, Class B (876,208) --
Net realized gains, Class C (539,738) --
Net realized gains, Class I (156,842) --
----------- -----------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (2,102,645) (132,775)
----------- -----------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (20,588 and 384,281 shares,
respectively) 271,536 5,228,285
Net asset value of shares issued from reinvestment of
distributions
(29,156 and 4,346 shares, respectively) 345,397 59,713
Cost of shares repurchased (380,081 and 276,404 shares,
respectively) (4,983,646) (3,660,309)
----------- -----------
Total (4,366,713) 1,627,689
----------- -----------
CLASS B
Proceeds from sales of shares (52,764 and 501,874 shares,
respectively) 684,195 7,079,169
Net asset value of shares issued from reinvestment of
distributions
(66,723 and 1,278 shares, respectively) 782,620 17,536
Cost of shares repurchased (547,967 and 145,254 shares,
respectively) (7,095,775) (1,872,589)
----------- -----------
Total (5,628,960) 5,224,116
----------- -----------
CLASS C
Proceeds from sales of shares (71,824 and 518,964 shares,
respectively) 919,029 7,191,191
Net asset value of shares issued from reinvestment of
distributions
(45,958 and 1,309 shares, respectively) 538,304 18,020
Cost of shares repurchased (738,676 and 432,508 shares,
respectively) (9,519,002) (5,559,832)
----------- -----------
Total (8,061,669) 1,649,379
----------- -----------
CLASS I
Proceeds from sales of shares (17,995 and 0 shares,
respectively) 228,000 --
Net asset value of shares issued from reinvestment of
distributions
(16,206 and 1,365 shares, respectively) 192,711 18,783
Cost of shares repurchased (6,202 and 0 shares,
respectively) (83,117) --
----------- -----------
Total 337,594 18,783
----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (17,719,748) 8,519,967
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS (20,183,528) 6,648,932
NET ASSETS
Beginning of period 40,616,040 33,967,108
----------- -----------
END OF PERIOD [INCLUDING DISTRIBUTIONS IN EXCESS OF NET
INVESTMENT INCOME OF
($17,114) AND ($10,657), RESPECTIVELY] $20,432,512 $40,616,040
=========== ===========
</TABLE>
See Notes to Financial Statements 55
<PAGE>
Phoenix-Zweig Growth & Income Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------
FROM
YEAR ENDED DECEMBER 31 INCEPTION
------------------------------------ 11/26/96 TO
1999 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $13.40 $13.73 $11.37 $11.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.17(6) 0.11 0.24 0.01
Net realized and unrealized gain (loss) (0.08) (0.33) 2.36 0.03
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.09 (0.22) 2.60 0.04
------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.21) (0.11) (0.24) (0.01)
Dividends from net realized gains (1.15) -- -- --
------ ------ ------ ------
TOTAL DISTRIBUTIONS (1.36) (0.11) (0.24) (0.01)
------ ------ ------ ------
Change in net asset value (1.27) (0.33) 2.36 0.03
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $12.13 $13.40 $13.73 $11.37
====== ====== ====== ======
Total return(1) 1.09% (1.61)% 23.12% 0.39%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $3,393 $8,172 $6,836 $2,508
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.80% 1.56 %(4) 1.30%(4) 1.30%(2)(4)
Net investment income 1.28% 0.82 % 2.26% 1.47%(2)
Portfolio turnover 193% 152 % 120% 2%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------
FROM
YEAR ENDED DECEMBER 31 INCEPTION
------------------------------------ 11/26/96 TO
1999 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $13.39 $ 13.73 $ 11.37 $11.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.08(6) 0.02 0.16 0.01
Net realized and unrealized gain (loss) (0.08) (0.34) 2.36 0.03
------ ------- ------- ------
TOTAL FROM INVESTMENT OPERATIONS 0.00 (0.32) 2.52 0.04
------ ------- ------- ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.10) (0.02) (0.16) (0.01)
Dividends from net realized gains (1.15) -- -- --
------ ------- ------- ------
TOTAL DISTRIBUTIONS (1.25) (0.02) (0.16) (0.01)
------ ------- ------- ------
Change in net asset value (1.25) (0.34) 2.36 0.03
------ ------- ------- ------
NET ASSET VALUE, END OF PERIOD $12.14 $ 13.39 $ 13.73 $11.37
====== ======= ======= ======
Total return(1) 0.42% (2.33)% 22.29% 0.33%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $9,684 $16,416 $11,920 $2,693
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.51% 2.26 %(5) 2.00%(5) 2.00%(2)(5)
Net investment income 0.64% 0.12 % 1.56% 0.77%(2)
Portfolio turnover 193% 152 % 120% 2%
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized.
(3) Not annualized.
(4) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.61%,
2.00% and 3.37% for the periods ended December 31, 1998, 1997 and 1996,
respectively.
(5) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 2.31%,
2.70% and 4.07% for the periods ended December 31, 1998, 1997 and 1996,
respectively.
(6) Computed using average shares outstanding.
56 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Growth & Income Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
-----------------------------------------------------
FROM
YEAR ENDED DECEMBER 31 INCEPTION
------------------------------------ 11/26/96 TO
1999 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $13.37 $ 13.71 $ 11.38 $11.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.08(6) 0.02 0.17 0.01
Net realized and unrealized gain (loss) (0.07) (0.34) 2.33 0.04
------ ------- ------- ------
TOTAL FROM INVESTMENT OPERATIONS 0.01 (0.32) 2.50 0.05
------ ------- ------- ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.08) (0.02) (0.17) (0.01)
Dividends from net realized gains (1.15) -- -- --
------ ------- ------- ------
TOTAL DISTRIBUTIONS (1.23) (0.02) (0.17) (0.01)
------ ------- ------- ------
Change in net asset value (1.22) (0.34) 2.33 0.04
------ ------- ------- ------
NET ASSET VALUE, END OF PERIOD $12.15 $ 13.37 $ 13.71 $11.38
====== ======= ======= ======
Total return(1) 0.45% (2.34)% 22.15% 0.42%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $5,507 $14,364 $13,525 $4,509
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.50% 2.26 %(4) 2.00%(4) 2.00%(2)(4)
Net investment income 0.60% 0.12 % 1.56% 0.77%(2)
Portfolio turnover 193% 152 % 120% 2%
</TABLE>
<TABLE>
<CAPTION>
CLASS I
-----------------------------------------------------
FROM
YEAR ENDED DECEMBER 31 INCEPTION
------------------------------------ 11/26/96 TO
1999 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $13.44 $13.77 $11.37 $11.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.23(6) 0.15 0.24 0.02
Net realized and unrealized gain (loss) (0.09) (0.33) 2.40 0.03
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.14 (0.18) 2.64 0.05
------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.25) (0.15) (0.24) (0.02)
Dividends from net realized gains (1.15) -- -- --
------ ------ ------ ------
TOTAL DISTRIBUTIONS (1.40) (0.15) (0.24) (0.02)
------ ------ ------ ------
Change in net asset value (1.26) (0.33) 2.40 0.03
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $12.18 $13.44 $13.77 $11.37
====== ====== ====== ======
Total return(1) 1.46% (1.31)% 23.42% 0.41%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,848 $1,664 $1,686 $101
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.54% 1.26 %(5) 1.00%(5) 1.00%(2)(5)
Net investment income 1.72% 1.12 % 2.56% 1.77%(2)
Portfolio turnover 193% 152 % 120% 2%
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized.
(3) Not annualized.
(4) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 2.31%,
2.70% and 4.07% for the periods ended December 31, 1998, 1997 and 1996,
respectively.
(5) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.31%,
1.70% and 3.07% for the periods ended December 31, 1998, 1997 and 1996,
respectively.
(6) Computed using average shares outstanding.
See Notes to Financial Statements 57
<PAGE>
PHOENIX-ZWEIG MANAGED ASSETS
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM
Q: HOW WOULD YOU DESCRIBE THE FUND'S INVESTMENT OBJECTIVE AND STRATEGY?
A: In managing the Fund, we focus on capital appreciation through a flexible
investment approach that includes investments in domestic and foreign stocks and
bonds. Investors should keep in mind that foreign investments pose added risks,
such as currency fluctuation, less public disclosure, as well as economic and
political risks.
Q: HOW WOULD YOU ASSESS THE FUND'S PERFORMANCE IN 1999?
A: We are full market-cycle investors with an eye on risk control, unique in the
mutual fund universe. Our style of limiting losses during market corrections may
not have been valued in 1999, but has proven itself as recently as the summer of
1998.
For the 12 months ended December 31, 1999, Class A shares gained 8.81%,
Class B shares rose 8.03%, Class C shares were up 8.01% and Class I shares
returned 9.08%, compared with a return of 14.26% for the Fund's benchmark
index(1).
Q: WHAT WERE SOME OF THE HIGHLIGHTS IN THE FUND LAST YEAR?
A: We began the year positioned bullishly on both the stock and bond markets. As
economic activity boomed and commodity prices rose, however, our bond models
deteriorated across the globe. We trimmed our bond positions, making the right
move as the yield on the 30-year Treasury bond increased, sending the value of
bonds way down. As a matter of fact, 1999 was the bond market's worst calendar
year since the 1920's.
Our models also did well in Japan, as we stayed very positive on Japanese
stocks all year long. Japan turned out to be one of the best performing markets
of the year. Other highlights for the Fund were bigger-than-usual holdings in
France and Finland, two European stock markets that did extremely well. Finally,
our models were effective in the currency arena, especially in the new euro
currency. As the euro lost value, we insulated the Fund against that move.
Q: WERE THERE ANY EVENTS LAST YEAR THAT HINDERED PERFORMANCE?
A: Our models viewed the rise in interest rates and the pressure on the bond
market as negative factors for stocks, so we generally held a high level of cash
for most of the year. The reduced stock market exposure limited our ability to
make significant gains, as the high cash levels turned out to be overly cautious
on the equity markets. However, we always stick to our discipline. Our models
are reacting negatively to the hikes in interest rates by many central banks,
including the Federal Reserve, the European Central Bank, and the Bank of
England. As always, we would rather err on the side of caution.
Q: ARE YOUR MODELS STILL CAUTIOUS ON THE MARKETS?
A: As of this writing, we are trimming the Fund's equity exposure as interest
rates continue to go higher, investor sentiment is overly optimistic, and market
breadth is poor. All three of the areas we look at -- monetary, sentiment, and
momentum -- show the indicators are weak. But, it is important to remember that
our models can improve at any time.
JANUARY 18, 2000
(1) THE FUND'S BENCHMARK INDEX IS A COMPOSITE OF 50% OF THE RETURN OF THE MORGAN
STANLEY CAPITAL INTERNATIONAL (MSCI) WORLD INDEX AND 50% OF THE RETURN OF
THE SALOMON CURRENCY HEDGED WORLD GOVERNMENT BOND INDEX.
THE INDICES ARE UNMANAGED, COMMONLY USED MEASURES OF FOREIGN STOCK AND BOND
TOTAL RETURN PERFORMANCE AND ARE NOT AVAILABLE FOR DIRECT INVESTMENT.
58
<PAGE>
Phoenix-Zweig Managed Assets
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 12/31/99
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR 5 YEARS TO 12/31/99 DATE
------ ------- ----------- ---------
<S> <C> <C> <C> <C>
Class A Shares at NAV(2) 8.81% 13.00% 10.59% 2/8/93
Class A Shares at POP(3) 2.82 11.73 9.69 2/8/93
Class B Shares at NAV(2) 8.03 -- 12.30 4/8/96
Class B Shares with CDSC(4) 4.06 -- 11.71 4/8/96
Class C Shares at NAV(2) 8.01 12.19 9.81 2/8/93
Class C Shares with CDSC(4) 8.01 12.19 9.81 2/8/93
Class I Shares at NAV(2) 9.08 -- 13.94 11/1/96
Balanced Benchmark(7) 14.26 11.90 Note 6 Note 6
</TABLE>
<TABLE>
<C> <S>
(1) Total returns are historical and include changes in share
price and the reinvestment of both dividends and capital
gains distributions.
(2) "NAV" (Net Asset Value) total returns do not include the
effect of any sales charge.
(3) "POP" (Public Offering Price) total returns include the
effect of the maximum front-end 5.50% sales charge.
(4) CDSC (contingent deferred sales charge) is applied to
redemptions of certain classes of shares that do not have
a sales charge applied at the time of purchase. CDSC
charges for B shares decline from 5% to 0% over a five
year period. CDSC charges for C shares are 1.25% in the
first year and 0% thereafter.
(5) This chart illustrates POP returns on Class A Shares and
CDSC returns for Class C Shares since inception. Returns
on Class B and Class I Shares will vary due to differing
sales charges.
(6) Index performance is 11.63% for Class A and Class C
(since 2/28/93), 11.21% for Class B (since 4/30/96) and
11.53% for Class I (since 11/30/96), respectively.
(7) The Balanced Benchmark is a composite index made up of
50% of the Morgan Stanley Capital International (MSCI)
World Index and 50% of the Salomon Currency Hedged World
Government Bond Index. The index's performance does not
reflect sales charges.
All returns represent past performance which may not be
indicative of future performance. The investment return
and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth
more or less than their original cost.
</TABLE>
GROWTH OF $10,000 PERIODS ENDING 12/31
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PHOENIX-ZWEIG MANAGED PHOENIX-ZWEIG MANAGED
<S> <C> <C> <C>
Assets Class A(5) Assets Class C(5) Balanced Benchmark(7)
2/8/93 $9,450 $10,000 $10,000
93 $10,582 $11,134 $11,864
94 $10,272 $10,727 $12,101
95 $11,942 $12,384 $13,926
96 $13,113 $13,501 $15,039
97 $15,141 $15,482 $16,060
98 $17,393 $17,654 $18,577
99 $18,924 $19,068 $21,226
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
2/8/93 (inception of the Fund) in Class A and Class C shares. The total return
for Class A shares reflects the maximum sales charge of 5.50% on the initial
investment. The total return for Class C shares reflects the CDSC charges which
are 1.25% in the first year and 0% thereafter. Performance assumes dividends and
capital gains are reinvested. The performance of other share classes will be
greater or less than that shown based on differences in inception dates, fees
and sales charges.
COUNTRY WEIGHTINGS 12/31/99
As a percentage of equity holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
United States 44%
Japan 12%
France 12%
United Kingdom 8%
Germany 6%
Australia 5%
Spain 4%
Other 9%
</TABLE>
59
<PAGE>
Phoenix-Zweig Managed Assets
TEN LARGEST EQUITY HOLDINGS AT DECEMBER 31, 1999 (AS A PERCENTAGE OF TOTAL NET
ASSETS)
<TABLE>
<C> <S> <C>
1. Oracle Corp. 1.5%
MARKETS DATABASE-MANAGEMENT SOFTWARE
2. Nokia Oyj 1.2%
LEADING SUPPLIER OF DIGITAL MOBILE AND FIXED NETWORKS
3. France Telecom SA 0.8%
PRINCIPAL PROVIDER OF TELECOMMUNICATIONS SERVICES IN FRANCE
4. United States Cellular Corp. 0.7%
OPERATES CELLULAR TELEPHONE SYSTEMS
5. International Business Machines Corp. 0.7%
PROVIDES ADVANCE INFORMATION TECHNOLOGIES
6. Merck & Co., Inc. 0.6%
MANUFACTURER OF ETHICAL DRUGS AND SPECIALTY CHEMICALS
7. Intel Corp. 0.6%
DESIGNS, DEVELOPS AND MARKETS ADVANCED MICROCOMPUTER COMPONENTS
8. Telefonaktiebolaget LM Ericsson Class B 0.6%
INTERNATIONAL LEADER IN TELECOMMUNICATIONS
9. AT&T Corp. 0.6%
PROVIDER OF TELECOMMUNICATIONS SERVICES
10. AXA-UAP ADR 0.6%
INSURANCE AND FINANCIAL SERVICES PROVIDER
</TABLE>
INVESTMENTS AT DECEMBER 31, 1999
<TABLE>
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--18.6%
UNITED STATES--18.6%
AFLAC, Inc. (Insurance (Life/Health))... 12,000 $ 566,250
AT&T Corp. (Telecommunications (Long
Distance)).............................. 62,000 3,146,500
Alberto-Culver Co. Class B (Personal
Care)................................... 13,000 335,563
Alcoa, Inc. (Aluminum).................. 12,000 996,000
Allergan, Inc. (Health Care
(Diversified)).......................... 24,000 1,194,000
Amgen, Inc. (Biotechnology)(b).......... 24,000 1,441,500
Bear Stearns Cos., Inc. (The)
(Investment Banking/Brokerage).......... 5,250 224,438
Bell Atlantic Corp. (Telephone)......... 30,720 1,891,200
Biogen, Inc. (Biotechnology)(b)......... 20,000 1,690,000
Brinker International, Inc.
(Restaurants)(b)........................ 20,000 480,000
Brunswick Corp. (Leisure Time
(Products))............................. 37,000 823,250
CBS Corp. (Broadcasting (Television,
Radio & Cable))(b)...................... 9,000 575,437
CIGNA Corp. (Insurance (Multi-Line)).... 8,000 644,500
CNF Transportation, Inc. (Air
Freight)................................ 9,000 310,500
Chase Manhattan Corp. (The) (Banks
(Money Center))......................... 37,000 2,874,437
Colgate-Palmolive Co. (Household
Products (Non-Durable))................. 40,000 2,600,000
Computer Sciences Corp. (Services
(Computer Systems))(b).................. 8,000 757,000
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
UNITED STATES--CONTINUED
Consolidated Natural Gas Co. (Natural
Gas).................................... 20,000 $ 1,298,750
Coors (Adolph) Co. Class B (Beverages
(Alcoholic))............................ 9,000 472,500
Diamond Offshore Drilling, Inc. (Oil &
Gas (Drilling & Equipment))............. 25,000 764,063
Dow Chemical Co. (The) (Chemicals)...... 18,000 2,405,250
Exxon Mobil Corp. (Oil (International
Integrated))............................ 9,000 725,063
Fannie Mae (Financial (Diversified)).... 12,000 749,250
Federated Department Stores, Inc.
(Retail (Department Stores))(b)......... 56,000 2,831,500
FleetBoston Financial Corp. (Banks
(Major Regional))....................... 45,000 1,566,562
Freeport-McMoRan Copper & Gold, Inc.
(Metals Mining)(b)...................... 23,000 485,875
General Electric Co. (Electrical
Equipment).............................. 9,000 1,392,750
General Motors Corp. (Automobiles)...... 10,000 726,875
Halliburton Co. (Oil & Gas (Drilling &
Equipment))............................. 11,000 442,750
Harrah's Entertainment, Inc. (Gaming,
Lottery & Pari-mutuel Companies)(b)..... 29,000 766,687
Hewlett-Packard Co. (Computers
(Hardware))............................. 20,000 2,278,750
</TABLE>
60 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Managed Assets
<TABLE>
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
UNITED STATES--CONTINUED
Honeywell International, Inc.
(Manufacturing (Diversified))........... 32,000 $ 1,846,000
Household International, Inc. (Consumer
Finance)................................ 12,599 469,313
IBP, Inc. (Foods)....................... 46,000 828,000
Intel Corp. (Electronics
(Semiconductors))....................... 39,000 3,210,187
International Business Machines Corp.
(Computers (Hardware)).................. 33,000 3,564,000
Interpublic Group of Companies, Inc.
(The) (Services
(Advertising/Marketing))................ 8,000 461,500
Johnson & Johnson (Health Care
(Diversified)).......................... 9,000 838,125
Kimberly-Clark Corp. (Household Products
(Non-Durable)).......................... 4,000 261,000
Kmart Corp. (Retail (General
Merchandise))(b)........................ 40,000 402,500
Knight-Ridder, Inc. (Publishing
(Newspapers))........................... 5,000 297,500
Limited, Inc. (The) (Retail
(Specialty-Apparel)).................... 30,000 1,299,375
Lucent Technologies, Inc.
(Communications Equipment).............. 26,000 1,945,125
Merck & Co., Inc. (Health Care
(Drugs-Major Pharmaceuticals)).......... 50,000 3,353,125
Merrill Lynch & Co., Inc. (Investment
Banking/Brokerage)...................... 2,000 167,000
Microsoft Corp. (Computers (Software &
Services))(b)........................... 8,000 934,000
Minnesota Mining and Manufacturing Co.
(Manufacturing (Diversified))........... 13,000 1,272,375
Morgan Stanley Dean Witter & Co.
(Financial (Diversified))............... 7,000 999,250
Navistar International Corp. (Trucks &
Parts).................................. 14,000 663,250
New York Times Co. (The) Class A
(Publishing (Newspapers))............... 28,000 1,375,500
Newmont Mining Corp. (Gold & Precious
Metals Mining).......................... 19,000 465,500
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
UNITED STATES--CONTINUED
Oracle Corp. (Computers (Software &
Services))(b)........................... 69,000 $ 7,732,312
PNC Bank Corp. (Banks (Major
Regional)).............................. 50,000 2,225,000
Pfizer, Inc. (Health Care (Drugs-Major
Pharmaceuticals))....................... 21,000 681,187
Phillips Petroleum Co. (Oil (Domestic
Integrated))............................ 45,000 2,115,000
Procter & Gamble Co. (The) (Household
Products (Non-Durable))................. 21,000 2,300,813
SBC Communications, Inc. (Telephone).... 40,796 1,988,805
SUPERVALU, Inc. (Distributors (Food &
Health))................................ 13,000 260,000
Schering-Plough Corp. (Health Care
(Drugs-Major Pharmaceuticals)).......... 40,000 1,687,500
Scientific-Atlanta, Inc. (Communications
Equipment).............................. 22,000 1,223,750
Springs Industries, Inc. Class A
(Textiles (Home Furnishings))........... 13,000 519,188
TJX Cos., Inc. (The) (Retail (Specialty-
Apparel))............................... 26,000 531,375
Texaco, Inc. (Oil (International
Integrated))............................ 29,000 1,575,063
Tidewater, Inc. (Oil & Gas (Drilling &
Equipment))............................. 35,000 1,260,000
U S West, Inc. (Telephone).............. 30,000 2,160,000
UAL Corp. (Airlines)(b)................. 6,000 465,375
USX-U.S. Steel Group (Iron & Steel)..... 10,000 330,000
Union Carbide Corp. (Chemicals)......... 5,000 333,750
United States Cellular Corp.
(Telecommunications
(Cellular/Wireless))(b)................. 38,000 3,835,625
Unocal Corp. (Oil & Gas (Exploration &
Production))............................ 20,000 671,250
UtiliCorp United, Inc. (Electric
Companies).............................. 32,000 622,000
Viacom, Inc. Class B
(Entertainment)(b)...................... 18,000 1,087,875
Weyerhaeuser Co. (Paper & Forest
Products)............................... 5,000 359,063
</TABLE>
See Notes to Financial Statements 61
<PAGE>
Phoenix-Zweig Managed Assets
<TABLE>
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
UNITED STATES--CONTINUED
Whirlpool Corp. (Household Furnishings &
Appliances)............................. 23,000 $ 1,496,437
------------
97,571,193
------------
- --------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $60,312,608) 97,571,193
- --------------------------------------------------------------------------
FOREIGN COMMON STOCKS--23.8%
AUSTRALIA--2.0%
Brambles Industries Ltd. (Services
(Commercial & Consumer))................ 33,860 937,069
Cable & Wireless Optus Ltd.
(Telephone)(b).......................... 385,900 1,290,500
Colonial Ltd. (Financial
(Diversified)).......................... 109,500 489,922
Commonwealth Bank of Australia (Banks
(Major Regional))....................... 155,000 2,671,132
Lend Lease Corp., Ltd. (Financial
(Diversified)).......................... 67,000 939,365
Publishing & Broadcasting Ltd.
(Broadcasting (Television, Radio &
Cable))................................. 144,000 1,100,291
Rio Tinto Ltd. (Metals Mining).......... 31,600 679,327
TAB Ltd. (Gaming, Lottery & Pari-mutuel
Companies).............................. 204,600 373,694
Telstra Corp. Ltd. (Telephone).......... 164,000 892,153
Telstra Corp., Ltd. (Telephone)(b)...... 135,000 476,292
Woodside Petroleum Ltd. (Oil & Gas
(Exploration & Production))............. 72,100 532,909
------------
10,382,654
------------
FINLAND--1.5%
Merita PLC (Banks (Major Regional))..... 64,400 379,434
Metso Oyj (Machinery
(Diversified))(b)....................... 4,500 58,465
Nokia Oyj (Communications Equipment).... 35,400 6,417,565
Sampo Insurance Co., Ltd. Class A
(Insurance (Property-Casualty))......... 2,100 73,391
Sonera Oyj (Telephone).................. 10,400 712,781
Tietoenator Oyj (Services (Data
Processing))............................ 2,200 137,375
UPM-Kymmene Oyj (Paper & Forest
Products)............................... 8,500 342,431
------------
8,121,442
------------
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
FRANCE--5.0%
Air Liquide SA (Chemicals
(Specialty))............................ 5,906 $ 988,596
Alcatel (Communications Equipment)...... 7,500 1,722,228
Aventis SA (Chemicals
(Diversified))(b)....................... 3,338 193,644
Axa (Insurance (Multi-Line))............ 22,300 3,108,390
Banque Nationale de Paris (Banks (Major
Regional)).............................. 9,150 844,133
Carrefour SA (Retail (Food Chains))..... 12,180 2,246,105
Compagnie de Saint-Gobain (Manufacturing
(Diversified)).......................... 6,150 1,156,416
France Telecom SA (Telephone)........... 33,200 4,390,331
L'Oreal SA (Household Products (Non-
Durable))............................... 3,400 2,727,465
LVMH (Beverages (Alcoholic))............ 3,550 1,589,974
Promodes (Retail (Food Chains))......... 800 866,150
Schneider Electric SA (Electrical
Equipment).............................. 6,250 490,671
Simco SA (Financial (Diversified))...... 6,600 534,102
Total Fina SA Class B (Oil & Gas
(Refining & Marketing))................. 23,161 3,090,777
Vivendi (Manufacturing (Diversified))... 23,550 2,126,355
------------
26,075,337
------------
GERMANY--2.7%
Allianz AG Vinkulierte Registered Shares
(Insurance (Multi-Line))................ 5,250 1,763,395
Bayer AG (Chemicals (Diversified))...... 39,700 1,879,243
Celanese AG (Chemicals
(Specialty))(b)......................... 244 4,448
DaimlerChrysler AG (Automobiles)........ 20,160 1,567,481
Deutsche Bank AG (Banks (Major
Regional)).............................. 8,700 734,711
Deutsche Telekom AG (Telephone)......... 15,000 1,068,083
Dresdner Bank AG (Banks (Major
Regional)).............................. 16,500 897,371
HypoVereinsbank AG (Banks (Major
Regional)).............................. 6,250 426,780
Karstadt AG (Retail (Food Chains))...... 7,500 300,634
Mannesmann AG (Telephone)............... 8,050 1,941,761
RWE AG (Manufacturing (Diversified)).... 19,550 765,933
Siemens AG (Electronics (Component
Distributors)).......................... 16,200 2,060,691
Viag AG (Manufacturing (Diversified))... 23,400 428,925
Volkswagen AG (Automobiles)............. 6,800 383,181
------------
14,222,637
------------
</TABLE>
62 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Managed Assets
<TABLE>
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
ITALY--1.2%
Assicurazioni Generali (Insurance
(Life/Health)).......................... 21,198 $ 700,266
Benetton Group SPA (Textiles
(Apparel)).............................. 96,617 221,862
Beni Stabili SPA (Financial
(Diversified))(b)....................... 26,222 9,243
Edison SPA (Electric Companies)......... 13,496 110,643
Eni SPA (Oil (Domestic Integrated))..... 128,807 708,315
Fiat SPA (Automobiles).................. 10,156 289,981
Mediaset SPA (Broadcasting (Television,
Radio & Cable))......................... 19,587 304,586
Mediobanca SPA (Banks (Major
Regional)).............................. 17,635 179,920
Pirelli SPA (Auto Parts & Equipment).... 103,067 282,866
Riunione Adriatica di Sicurta SPA
(Insurance (Multi-Line))................ 22,014 220,827
San Paolo-IMI SPA (Banks (Major
Regional)).............................. 26,222 356,264
Sirti SPA (Engineering &
Construction)........................... 19,582 70,013
Snia SPA (Manufacturing
(Diversified)).......................... 29,050 31,247
Telecom Italia Mobile SPA (Telephone)... 109,816 1,226,568
Telecom Italia SPA (Telephone).......... 64,095 903,747
UniCredito Italiano SPA (Banks (Major
Regional)).............................. 134,443 660,773
------------
6,277,121
------------
JAPAN--5.3%
Acom Co., Ltd. (Consumer Finance)....... 4,500 440,883
Aiful Corp. (Consumer Finance).......... 6,840 836,841
Ajinomoto Co., Inc. (Foods)............. 12,000 125,086
Asahi Bank Ltd. (The) (Banks (Major
Regional)).............................. 26,000 160,321
Asahi Breweries Ltd. (Beverages
(Alcoholic))............................ 14,000 153,196
Asahi Chemical Industry Co. Ltd.
(Chemicals (Specialty))................. 26,000 133,601
Asahi Glass Co. Ltd. (Construction
(Cement & Aggregates)).................. 17,000 131,614
Bank of Tokyo-Mitsubishi Ltd. (The)
(Banks (Major Regional))................ 61,000 850,191
Bridgestone Corp. (Auto Parts &
Equipment).............................. 8,000 176,177
Canon, Inc. (Office Equipment &
Supplies)............................... 25,000 993,442
Daiwa House Industry Co., Ltd.
(Homebuilding).......................... 10,000 74,386
Daiwa Securities Group, Inc. (Investment
Banking/Brokerage)...................... 26,000 406,910
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
JAPAN--CONTINUED
Denso Corp. (Auto Parts & Equipment).... 13,000 $ 310,463
East Japan Railway Co. (Railroads)...... 42 226,505
Fanuc Ltd. (Machinery (Diversified)).... 2,800 356,543
Fuji Bank Ltd. (The) (Banks (Major
Regional)).............................. 35,000 340,168
Fuji Photo Film Co.
(Photography/Imaging)................... 18,000 657,140
Fujikura Ltd. (Electrical Equipment).... 4,000 15,895
Fujitsu Ltd. (Computers (Hardware))..... 14,000 638,544
Hitachi Credit Corp. (Consumer
Finance)................................ 15,100 306,670
Hitachi Ltd. (Electronics (Component
Distributors)).......................... 44,000 706,274
Hokuetsu Paper Mills Ltd. (Paper &
Forest Products)........................ 42,000 249,936
Honda Motor Co. Ltd. (Automobiles)...... 12,000 446,315
Industrial Bank of Japan Ltd. (The)
(Banks (Major Regional))................ 33,000 318,146
Ito-Yokado Co., Ltd. (Retail (Food
Chains))................................ 3,000 325,927
Kansai Electric Power Co., Inc. (The)
(Electric Companies).................... 14,300 249,274
Kawasaki Steel Corp. (Iron &
Steel)(b)............................... 410,000 734,364
Keio Electric Railway Co., Ltd. (Retail
(Department Stores)).................... 63,000 210,267
Kinki Nippon Railway Co., Ltd.
(Railroads)............................. 29,000 116,375
Kirin Brewery Co., Ltd. (Beverages
(Alcoholic))............................ 15,000 157,825
Kuraray Co., Ltd. (Chemicals
(Specialty))............................ 49,000 496,379
Kyocera Corp. (Electronics (Component
Distributors)).......................... 2,800 726,241
Kyowa Hakko Kogyo Co., Ltd. (Health Care
(Diversified)).......................... 53,000 317,990
Marui Co., Ltd. (Retail (Department
Stores))................................ 7,000 104,551
Matsushita Electric Industrial Co., Ltd.
(Electronics (Component
Distributors)).......................... 16,000 443,183
Minebea Co., Ltd. (Machinery
(Diversified)).......................... 17,000 291,681
Mitsubishi Chemical Corp. (Chemicals
(Specialty))............................ 38,000 133,894
Mitsubishi Corp. (Distributors (Food &
Health))................................ 80,000 617,794
Mitsubishi Heavy Industries Ltd.
(Machinery (Diversified))............... 34,000 113,478
</TABLE>
See Notes to Financial Statements 63
<PAGE>
Phoenix-Zweig Managed Assets
<TABLE>
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
JAPAN--CONTINUED
Mitsui & Co., Ltd. (Distributors (Food &
Health))................................ 29,000 $ 202,946
Murata Manufacturing Co., Ltd.
(Electronics (Component
Distributors)).......................... 4,000 939,610
NGK Insulators Ltd. (Electrical
Equipment).............................. 24,000 178,291
Nichiro Corp. (Foods)................... 45,000 66,066
Nippon Flour Mills Co., Ltd. (Foods).... 30,000 66,066
Nippon Soda Co., Ltd. (Chemicals
(Specialty))............................ 19,000 38,309
Nippon Steel Corp. (Iron & Steel)....... 125,000 292,405
Nippon Telegraph & Telephone Corp.
(Telephone)............................. 100 1,712,832
Nippon Yusen Kabushiki Kaisha
(Shipping).............................. 51,000 208,652
Nissan Motor Co., Ltd.
(Automobiles)(b)........................ 22,000 86,562
Nisshin Flour Milling Co., Ltd.
(Agricultural Products)................. 25,000 172,507
Obayashi Corp. (Engineering &
Construction)........................... 62,000 293,100
Oji Paper Co., Ltd. (Paper & Forest
Products)............................... 19,000 114,368
Osaka Gas Co., Ltd. (Natural Gas)....... 7,000 16,854
Promise Co., Ltd. (Consumer Finance).... 4,100 208,672
Rohm Co., Ltd. (Electronics
(Semiconductors))....................... 1,000 411,080
Sakura Bank Ltd. (The) (Banks (Major
Regional)).............................. 50,000 289,713
Sankyo Co., Ltd. (Health Care
(Drugs-Major Pharmaceuticals)).......... 6,000 123,324
Sanwa Bank Ltd. (The) (Banks (Major
Regional)).............................. 10,000 121,660
Sanyo Electric Co., Ltd. (Electronics
(Component Distributors))............... 35,000 142,165
Sekisui House, Ltd. (Homebuilding)...... 13,000 115,151
Shinagawa Refractories Co., Ltd.
(Construction (Cement & Aggregates)).... 22,000 48,664
Shin-Etsu Chemical Co., Ltd. (Chemicals
(Specialty))............................ 7,000 301,458
Shizuoka Bank Ltd. (The) (Banks (Major
Regional)).............................. 5,000 51,287
Showa Shell Sekiyu K.K. (Oil & Gas
(Refining & Marketing))................. 25,000 110,355
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
JAPAN--CONTINUED
Sony Corp. (Household Furnishings &
Appliances)............................. 7,400 $ 2,194,578
Sumitomo Bank Ltd. (The) (Banks (Major
Regional)).............................. 47,000 643,565
Sumitomo Chemical Co., Ltd. (Chemicals
(Specialty))............................ 29,000 136,244
Sumitomo Electric Industries (Electrical
Equipment).............................. 13,000 150,269
Sumitomo Marine & Fire Insurance Co.,
Ltd. (The) (Insurance
(Property-Casualty)).................... 43,000 265,146
Takeda Chemical Industries, Ltd. (Health
Care (Drugs-Major Pharmaceuticals))..... 18,000 889,694
Takefuji Corp. (Consumer Finance)....... 4,800 600,881
Toa Corp. (Engineering &
Construction)........................... 1,000 1,360
Toho Zinc Co., Ltd. (Metals Mining)..... 6,000 10,336
Tokai Bank Ltd. (The) (Banks (Major
Regional)).............................. 22,000 138,671
Tokyo Electric Power Co., Inc. (The)
(Electric Companies).................... 16,000 429,089
Toppan Printing Co., Ltd. (Specialty
Printing)............................... 13,000 129,784
Toray Industries, Inc. (Textiles (Home
Furnishings))........................... 25,000 96,897
Toyoda Automatic Loom Works, Ltd. (Auto
Parts & Equipment)...................... 4,000 83,586
Toyota Motor Corp. (Automobiles)........ 26,000 1,259,665
Yamanouchi Pharmaceutical Co., Ltd.
(Health Care (Diversified))............. 6,000 209,651
------------
27,645,983
------------
SPAIN--1.8%
Acerinox SA (Iron & Steel).............. 2,356 93,965
Altadis SA (Tobacco).................... 14,676 209,889
Argentaria, Caja Postal y Banco
Hipotecario de Espana SA (Banks (Major
Regional)).............................. 21,462 504,289
Autopistas, Concesionaria Espanola SA
(Services (Commercial & Consumer))...... 14,100 137,038
</TABLE>
64 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Managed Assets
<TABLE>
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
SPAIN--CONTINUED
Banco Bilbao Vizcaya SA (Banks (Major
Regional)).............................. 67,814 $ 965,747
Banco Espanol de Credito SA (Banks
(Major Regional))(b).................... 4,905 77,856
Banco Santander Central Hispano SA
(Banks (Major Regional))................ 134,471 1,522,262
Centros Comerciales Pryca, SA (Retail
(Food Chains)).......................... 1,163 18,167
Corporacion Financiera Alba, SA
(Financial (Diversified))............... 4,515 154,426
Corporacion Mapfre (Insurance (Property-
Casualty)).............................. 8,400 138,068
Endesa SA (Electric Companies).......... 38,569 765,631
Fomento de Construcciones y Contratas SA
(Engineering & Construction)............ 6,130 124,711
Groupo Dragados SA (Engineering &
Construction)........................... 14,088 124,293
Iberdrola SA (Electric Companies)....... 39,076 541,531
Repsol-YPF SA (Oil & Gas (Refining &
Marketing))............................. 45,285 1,049,915
Sociedad General de Augas de Barcelona,
SA (Waste Management)................... 8,922 130,653
Telefonica SA (Telephone)(b)............ 115,329 2,880,612
Union Electrica Fenosa, SA (Electric
Companies).............................. 12,042 210,301
------------
9,649,354
------------
SWEDEN--1.0%
ForeningsSparbanken AB (Banks (Major
Regional)).............................. 16,100 236,542
Hennes & Mauritz AB Class B (Retail
(Specialty-Apparel)).................... 25,600 857,546
Skandia Forsakrings AB (Insurance (Life/
Health))................................ 15,400 465,186
Svenska Handlesbanken AB Class A (Banks
(Major Regional))....................... 21,500 270,393
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
SWEDEN--CONTINUED
Telefonaktiebolaget LM Ericsson Class B
(Communications Equipment).............. 49,500 $ 3,182,475
------------
5,012,142
------------
UNITED KINGDOM--3.3%
Abbey National PLC (Financial
(Diversified)).......................... 25,200 402,985
Allied Zurich PLC (Financial
(Diversified)).......................... 25,950 305,785
BAA PLC (Services (Commercial &
Consumer)).............................. 13,400 94,156
BOC Group PLC (Chemicals (Specialty))... 16,077 345,390
BP Amoco PLC (Oil (Domestic
Integrated))............................ 123,200 1,238,806
Bass PLC (Beverages (Alcoholic))........ 20,927 260,455
Boots Co. PLC (Retail (Drug Stores)).... 16,015 155,732
British American Tobacco PLC
(Tobacco)............................... 33,350 189,489
British Telecommunications PLC
(Telephone)............................. 109,600 2,678,568
Cable & Wireless PLC (Telephone)........ 14,781 250,457
Cadbury Schweppes PLC (Foods)........... 29,336 177,225
Caradon PLC (Building Materials)........ 11,340 28,575
De La Rue PLC (Office Equipment &
Supplies)............................... 4,600 26,006
Glaxo Wellcome PLC (Health Care (Drugs-
Major Pharmaceuticals))................. 50,600 1,430,348
Great Universal Stores PLC (The) (Retail
(Home Shopping))........................ 15,800 92,389
HSBC Holdings PLC (Financial
(Diversified)).......................... 131,100 1,827,539
Hanson PLC (Construction (Cement &
Aggregates))............................ 10,121 84,848
Hilton Group PLC (Gaming, Lottery &
Pari-mutuel Companies).................. 18,800 60,204
Imperial Chemical Industries PLC
(Chemicals (Diversified))............... 23,700 250,943
Invensys PLC (Machinery
(Diversified)).......................... 45,200 246,049
Kingfisher PLC (Retail (Specialty))..... 31,400 348,449
Land Securities PLC (Financial
(Diversified)).......................... 21,400 239,898
Lloyds TSB Group PLC (Financial
(Diversified)).......................... 50,100 626,776
Marks & Spencer PLC (Retail (Department
Stores))................................ 35,964 171,228
National Power PLC (Electric
Companies).............................. 13,500 78,176
</TABLE>
See Notes to Financial Statements 65
<PAGE>
Phoenix-Zweig Managed Assets
<TABLE>
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
UNITED KINGDOM--CONTINUED
National Westminster Bank PLC (Banks
(Major Regional))....................... 15,302 $ 328,740
Prudential PLC (Insurance
(Life/Health)).......................... 66,600 1,312,464
RMC Group PLC (Construction (Cement &
Aggregates))............................ 8,500 114,646
Railtrack Group PLC (Railroads)......... 8,800 147,832
Rank Group PLC (Entertainment).......... 10,000 31,902
Reed International PLC (Publishing)..... 48,950 366,485
Royal Bank of Scotland Group PLC (Banks
(Major Regional))....................... 12,772 226,524
ScottishPower PLC (Electric
Companies).............................. 19,200 145,455
Shell Transport & Trading Co. PLC (Oil
(Domestic Integrated)).................. 120,000 997,286
SmithKline Beecham PLC (Health Care
(Drugs-Major Pharmaceuticals)).......... 42,422 541,342
South African Breweries PLC (Beverages
(Alcoholic))............................ 20,000 203,412
TI Group PLC (Manufacturing
(Diversified)).......................... 36,335 269,983
Tarmac PLC (Construction (Cement &
Aggregates))............................ 14,320 132,657
Tesco PLC (Retail (Food Chains))........ 142,800 434,227
Unilever PLC (Foods).................... 38,075 280,144
United Biscuits (Holdings) PLC
(Foods)................................. 29,511 126,562
Williams PLC (Services (Commercial &
Consumer)).............................. 34,628 158,295
Wolseley PLC (Distributors (Food &
Health))................................ 15,400 118,097
------------
17,546,529
------------
- --------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $75,028,050) 124,933,199
- --------------------------------------------------------------------------
FOREIGN PREFERRED STOCKS--0.0%
ITALY--0.0%
Fiat SPA-Preferred (Automobiles)........ 7,403 106,993
- --------------------------------------------------------------------------
TOTAL FOREIGN PREFERRED STOCKS
(IDENTIFIED COST $119,170) 106,993
- --------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- -------------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--10.1%
U.S. TREASURY BONDS--1.4%
U.S. Treasury Bonds 8.75%,
8/15/20....................... AAA $ 2,900 $ 3,512,543
U.S. Treasury Bonds 6.375%,
8/15/27....................... AAA 1,700 1,631,728
U.S. Treasury Bonds 5.25%,
2/15/29....................... AAA 2,400 1,986,848
-------------
7,131,119
-------------
U.S. TREASURY NOTES--8.7%
U.S. Treasury Inflationary
Notes 3.625%, 1/15/08(d)...... AAA 12,128 11,552,648
U.S. Treasury Notes 6.25%,
8/31/00....................... AAA 10,400 10,418,114
U.S. Treasury Notes 10.75%,
5/15/03....................... AAA 7,000 7,912,301
U.S. Treasury Notes 7.50%,
2/15/05....................... AAA 7,100 7,402,794
U.S. Treasury Notes 6.125%,
8/15/07....................... AAA 9,000 8,777,499
-------------
46,063,356
-------------
- ---------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES
(IDENTIFIED COST $55,070,272) 53,194,475
- ---------------------------------------------------------------------
AGENCY MORTGAGE-BACKED SECURITIES--0.9%
Freddie Mac 5.125%,
10/15/08...................... AAA 5,100 4,473,760
- ---------------------------------------------------------------------
TOTAL AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $4,925,019) 4,473,760
- ---------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--12.4%
DENMARK--1.1%
Kingdom of Denmark 6%,
11/15/09(c)................... Aaa 40,000(f) 5,556,367
FINLAND--1.0%
Government of Finland 5%,
4/25/09....................... AA+ 5,300(g) 5,142,281
FRANCE--1.6%
Government of France 5.50%,
10/25/07...................... AAA 8,507(g) 8,627,457
GERMANY--1.6%
Deutschland Republic 6%,
7/4/07........................ AAA 7,848(g) 8,264,105
ITALY--0.8%
Republic of Italy 6.75%,
7/1/07........................ AA 3,873(g) 4,209,306
NEW ZEALAND--1.0%
Government of New Zealand 7%,
7/15/09....................... AAA 10,000(h) 5,114,965
SPAIN--1.4%
Government of Spain 6%,
1/31/08....................... AA+ 7,332(g) 7,628,322
</TABLE>
66 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Managed Assets
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- -------------
<S> <C> <C> <C>
SWEDEN--1.2%
Government of Sweden 9%,
4/20/09....................... AAA 44,000(i) $ 6,369,972
UNITED KINGDOM--2.7%
UK Treasury 7.25%, 12/7/07.... AAA 1,200(j) 2,111,650
UK Treasury 8.50%, 7/16/07.... AAA 6,400(j) 11,947,535
-------------
14,059,185
-------------
- ---------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(IDENTIFIED COST $68,777,081) 64,971,960
- ---------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--65.8%
(IDENTIFIED COST $264,232,200) 345,251,580
- ---------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
------- -------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--34.0%
U.S. GOVERNMENT SECURITIES--0.3%
U.S. Treasury Bill 5.01%, 2/3/00(e)..... $ 1,000 995,407
U.S. Treasury Bill 5.21%, 3/9/00(e)..... 500 495,352
-------------
1,490,759
-------------
FEDERAL AGENCY SECURITIES--19.9%
FMC Discount Note 5.80%, 1/13/00........ 10,000 9,980,667
FMC Discount Note 5.70%, 1/18/00........ 10,000 9,973,083
FC Discount Note 5.75%, 1/19/00......... 10,000 9,971,250
FMC Discount Note 4%, 1/20/00........... 20,000 19,957,778
FC Discount Note 5.80%, 1/27/00......... 10,000 9,958,111
FMC Discount Note 5.60%, 1/27/00........ 10,000 9,959,556
<CAPTION>
PAR
VALUE
(000) VALUE
------- -------------
<S> <C> <C> <C>
FEDERAL AGENCY SECURITIES--CONTINUED
FHLB Discount Corp. 5.75%, 2/9/00....... $15,000 $ 14,906,562
FMC Discount Note 5.60%, 2/11/00........ 10,000 9,942,261
Fannie Mae Discount Note 5.67%,
2/24/00................................. 10,000 9,914,805
-------------
104,564,073
-------------
REPURCHASE AGREEMENTS--13.8%
Morgan Stanley & Co., Inc. repurchase
agreement 2.75%, dated 12/31/99 due
1/3/00, repurchase price $44,403,173
collateralized by Fannie Mae Bonds 5.50%
to 9.50%, 9/1/06 to 12/1/29, market
value $45,725,059....................... 44,393 44,393,000
Prudential Securities, Inc. repurchase
agreement 2.60%, dated 12/31/99 due
1/3/00, repurchase price $28,006,067
collateralized by U.S. Treasury Note
15.75%, 11/15/01, market value
$28,560,606............................. 28,000 28,000,000
-------------
72,393,000
-------------
- --------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $178,449,567) 178,447,832
- --------------------------------------------------------------------
TOTAL INVESTMENTS--99.8%
(IDENTIFIED COST $442,681,767) 523,699,412(a)
Cash and receivables, less liabilities--0.2% 1,137,428
-------------
NET ASSETS--100.0% $ 524,836,840
=============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $ 90,212,563 and gross
depreciation of $9,886,206 for federal income tax purposes. At December
31,1999, the aggregate cost of securities for federal income tax purposes
was $443,373,055.
(b) Non-income producing.
(c) As rated by Moodys, Fitch or Duff & Phelps.
(d) Principal amount is adjusted daily pursuant to the change in the Consumer
Price Index.
(e) All or a portion segregated as collateral.
(f) Par value represents Danish Krone.
(g) Par value represents Euro.
(h) Par value represents New Zealand Dollar.
(i) Par value represents Swedish Krona.
(j) Par value represents British Pound.
See Notes to Financial Statements
67
<PAGE>
Phoenix-Zweig Managed Assets
INDUSTRY DIVERSIFICATION
AS A PERCENTAGE OF THE VALUE OF
TOTAL LONG-TERM INVESTMENTS
(UNAUDITED)
<TABLE>
<S> <C>
Agency Mortgage-Backed Securities....... 1.3%
Agricultural Products................... 0.1
Air Freight............................. 0.1
Airlines................................ 0.1
Aluminum................................ 0.3
Auto Parts & Equipment.................. 0.2
Automobiles............................. 1.4
Banks (Major Regional).................. 5.2
Banks (Money Center).................... 0.8
Beverages (Alcoholic)................... 0.8
Biotechnology........................... 0.9
Broadcasting (Television, Radio &
Cable)................................ 0.6
Building Materials...................... 0.1
Chemicals (Diversified)................. 0.7
Chemicals (Specialty)................... 0.7
Chemicals............................... 0.8
Communications Equipment................ 4.2
Computers (Hardware).................... 1.9
Computers (Software & Services)......... 2.5
Construction (Cement & Aggregates)...... 0.1
Consumer Finance........................ 0.8
Distributors (Food & Health)............ 0.3
Electric Companies...................... 0.9
Electrical Equipment.................... 0.6
Electronics (Component Distributors).... 1.5
Electronics (Semiconductors)............ 1.0
Engineering & Construction.............. 0.2
Entertainment........................... 0.3
Financial (Diversified)................. 2.1
Foods................................... 0.5
Foreign Government Securities........... 18.8
Gaming, Lottery & Pari-mutuel
Companies............................. 0.3
Gold & Precious Metals Mining........... 0.1
Health Care (Diversified)............... 0.7
Health Care (Drugs-Major
Pharmaceuticals)...................... 2.5
Homebuilding............................ 0.1
Household Furnishings & Appliances...... 1.1
Household Products (Non-Durable)........ 2.3
Insurance (Life/Health)................. 0.9
Insurance (Multi-Line).................. 1.7
Insurance (Property-Casualty)........... 0.1
Investment Banking/Brokerage............ 0.2
Iron & Steel............................ 0.4
Leisure Time (Products)................. 0.2%
Machinery (Diversified)................. 0.3
Manufacturing (Diversified)............. 2.3
Metals Mining........................... 0.3
Natural Gas............................. 0.4
Office Equipment & Supplies............. 0.3
Oil & Gas (Drilling & Equipment)........ 0.7
Oil & Gas (Exploration & Production).... 0.3
Oil & Gas (Refining & Marketing)........ 1.2
Oil (Domestic Integrated)............... 1.5
Oil (International Integrated).......... 0.7
Paper & Forest Products................. 0.3
Personal Care........................... 0.1
Photography/Imaging..................... 0.2
Publishing (Newspapers)................. 0.5
Publishing.............................. 0.1
Railroads............................... 0.1
Restaurants............................. 0.1
Retail (Department Stores).............. 1.0
Retail (Drug Stores).................... 0.1
Retail (Food Chains).................... 1.2
Retail (General Merchandise)............ 0.1
Retail (Home Shopping).................. 0.1
Retail (Specialty)...................... 0.1
Retail (Specialty-Apparel).............. 0.8
Services (Advertising/Marketing)........ 0.1
Services (Commercial & Consumer)........ 0.4
Services (Computer Systems)............. 0.2
Services (Data Processing).............. 0.1
Shipping................................ 0.1
Specialty Printing...................... 0.1
Telecommunications
(Cellular/Wireless)................... 1.1
Telecommunications (Long Distance)...... 0.9
Telephone............................... 7.7
Textiles (Apparel)...................... 0.1
Textiles (Home Furnishings)............. 0.2
Tobacco................................. 0.1
Trucks & Parts.......................... 0.2
U.S. Government Securities.............. 15.4
Waste Management........................ 0.1
-------
100.0%
=======
</TABLE>
68
<PAGE>
Phoenix-Zweig Managed Assets
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS
Investment securities at value,
exclusive of repurchase
agreements (Identified cost
$370,288,767) $451,306,412
Repurchase agreements, at value
(Identified cost $72,393,000) 72,393,000
Foreign currency at value
(Identified cost $166,471) 167,321
Cash 12,316
Gross unrealized appreciation on
forward foreign currency
contracts 834,240
Receivables
Dividends and interest 3,333,380
Tax reclaims 423,016
Fund shares sold 105,234
Prepaid expenses 9,141
------------
Total assets 528,584,060
------------
LIABILITIES
Gross unrealized depreciation on
forward foreign currency
contracts 1,125,454
Payables
Fund shares repurchased 1,338,951
Investment advisory fee 441,360
Distribution fee 378,674
Transfer agent fee 248,701
Financial agent fee 38,673
Trustees' fee 6,513
Accrued expenses 168,894
------------
Total liabilities 3,747,220
------------
NET ASSETS $524,836,840
============
NET ASSETS CONSIST OF:
Capital paid in on shares of
beneficial interest $426,752,715
Undistributed net investment income 2,710,988
Accumulated net realized gain 14,728,844
Net unrealized appreciation 80,644,293
------------
NET ASSETS $524,836,840
============
CLASS A
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $103,267,214) 7,355,413
Net asset value per share $14.04
Offering price per share
$14.04/(1-5.50%) $14.86
CLASS B
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $39,909,701) 2,821,192
Net asset value and offering price
per share $14.15
CLASS C
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $379,445,462) 27,255,420
Net asset value and offering price
per share $13.92
CLASS I
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $2,214,463) 156,147
Net asset value and offering price
per share $14.18
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $15,830,189
Dividends 4,627,057
Foreign taxes withheld (79,698)
-----------
Total investment income 20,377,548
-----------
EXPENSES
Investment advisory fee 5,597,860
Distribution fee, Class A 333,146
Distribution fee, Class B 397,812
Distribution fee, Class C 4,068,484
Financial agent fee 160,986
Transfer agent 606,626
Custodian 176,868
Printing 86,865
Professional 67,124
Registration 48,571
Trustees 19,875
Miscellaneous 18,200
-----------
Total expenses 11,582,417
-----------
NET INVESTMENT INCOME 8,795,131
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain on securities 55,008,032
Net realized loss on futures
contracts (3,277,612)
Net realized loss on foreign
currency transactions (273,841)
Net change in unrealized
appreciation (depreciation) on
investments (16,687,691)
Net change in unrealized
appreciation (depreciation) on
foreign currency and foreign
currency transactions (164,828)
-----------
NET GAIN ON INVESTMENTS 34,604,060
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $43,399,191
===========
</TABLE>
See Notes to Financial Statements 69
<PAGE>
Phoenix-Zweig Managed Assets
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
12/31/99 12/31/98
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 8,795,131 $ 9,661,159
Net realized gain (loss) 51,456,579 15,943,047
Net change in unrealized appreciation (depreciation) (16,852,519) 49,478,123
------------ ------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS 43,399,191 75,082,329
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (1,851,319) (3,258,823)
Net investment income, Class B (394,535) (565,142)
Net investment income, Class C (3,891,210) (8,750,847)
Net investment income, Class I (42,069) (84,713)
Net realized gains, Class A (7,665,272) (340,937)
Net realized gains, Class B (2,960,138) (89,551)
Net realized gains, Class C (28,568,205) (1,206,766)
Net realized gains, Class I (160,910) (4,991)
------------ ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (45,533,658) (14,301,770)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (980,240 and 1,570,483
shares, respectively) 14,230,772 21,680,005
Net asset value of shares issued from reinvestment of
distributions
(625,401 and 213,319 shares, respectively) 8,719,828 2,999,236
Cost of shares repurchased (2,859,688 and 1,893,703
shares, respectively) (41,487,644) (26,000,573)
------------ ------------
Total (18,537,044) (1,321,332)
------------ ------------
CLASS B
Proceeds from sales of shares (1,214,074 and 1,108,058
shares, respectively) 17,632,149 15,274,360
Net asset value of shares issued from reinvestment of
distributions
(215,090 and 34,599 shares, respectively) 3,004,893 489,841
Cost of shares repurchased (931,411 and 235,957 shares,
respectively) (13,617,868) (3,271,746)
------------ ------------
Total 7,019,174 12,492,455
------------ ------------
CLASS C
Proceeds from sales of shares (1,700,748 and 3,147,226
shares, respectively) 24,316,042 42,783,993
Net asset value of shares issued from reinvestment of
distributions
(2,145,927 and 536,232 shares, respectively) 29,524,085 7,486,461
Cost of shares repurchased (7,126,846 and 5,428,861
shares, respectively) (102,491,448) (73,691,914)
------------ ------------
Total (48,651,321) (23,421,460)
------------ ------------
CLASS I
Proceeds from sales of shares (20,802 and 2,421 shares,
respectively) 298,135 34,128
Net asset value of shares issued from reinvestment of
distributions
(14,394 and 6,289 shares, respectively) 202,973 89,701
Cost of shares repurchased (8,200 and 82,314 shares,
respectively) (120,305) (1,189,965)
------------ ------------
Total 380,803 (1,066,136)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (59,788,388) (13,316,473)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (61,922,855) 47,464,086
NET ASSETS
Beginning of period 586,759,695 539,295,609
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) OF
$2,710,988 AND $(234,705), RESPECTIVELY] $524,836,840 $586,759,695
============ ============
</TABLE>
70 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Managed Assets
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------
YEAR ENDED DECEMBER 31
-------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.18 $ 12.72 $ 12.75 $ 12.48 $ 11.76
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.31(4) 0.38(5) 0.13(5) 0.35(5) 0.47(5)
Net realized and unrealized gain (loss) 0.91 1.50 1.83 0.86 1.40
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 1.22 1.88 1.96 1.21 1.87
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.25) (0.38) -- (0.45) (0.75)
Dividends from net realized gains (1.11) (0.04) (1.99) (0.49) (0.40)
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (1.36) (0.42) (1.99) (0.94) (1.15)
--------- --------- --------- --------- ---------
Change in net asset value (0.14) 1.46 (0.03) 0.27 0.72
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 14.04 $ 14.18 $ 12.72 $ 12.75 $ 12.48
========= ========= ========= ========= =========
Total return(1) 8.81% 14.87% 15.47% 9.80% 16.26%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $103,267 $122,085 $110,908 $114,837 $141,110
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.51% 1.51% 1.59% 1.64% 1.59%
Net investment income 2.13% 2.77%(5) 2.40%(5) 2.64%(5) 3.69%(5)
Portfolio turnover 50% 62% 168% 187% 239%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------
FROM
YEAR ENDED DECEMBER 31 INCEPTION
----------------------------------- 4/8/96 TO
1999 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.28 $ 12.79 $ 12.90 $ 12.43
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.21(4) 0.26(5) 0.04(5) 0.13(5)
Net realized and unrealized gain (loss) 0.91 1.53 1.84 1.00
--------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 1.12 1.79 1.88 1.13
--------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.14) (0.26) -- (0.17)
Dividends from net realized gains (1.11) (0.04) (1.99) (0.49)
--------- --------- --------- ---------
TOTAL DISTRIBUTIONS (1.25) (0.30) (1.99) (0.66)
--------- --------- --------- ---------
Change in net asset value (0.13) 1.49 (0.11) 0.47
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 14.15 $ 14.28 $ 12.79 $ 12.90
========= ========= ========= =========
Total return(1) 8.03% 14.06% 14.67% 9.11%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $39,910 $33,172 $18,117 $6,339
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.21% 2.21% 2.29% 2.34%(2)
Net investment income 1.44% 2.07%(5) 1.70%(5) 1.94%(2)(5)
Portfolio turnover 50% 62% 168% 187%
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized.
(3) Not annualized.
(4) Computed using average shares outstanding.
(5) Includes realized gains and losses on foreign currency transactions.
See Notes to Financial Statements 71
<PAGE>
Phoenix-Zweig Managed Assets
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
-------------------------------------------------------------
YEAR ENDED DECEMBER 31
-------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.07 $ 12.63 $ 12.76 $ 12.49 $ 11.73
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.21(4) 0.29(5) 0.04(5) 0.27(5) 0.38(5)
Net realized and unrealized gain (loss) 0.89 1.48 1.82 0.85 1.40
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 1.10 1.77 1.86 1.12 1.78
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.14) (0.29) -- (0.36) (0.62)
Dividends from net realized gains (1.11) (0.04) (1.99) (0.49) (0.40)
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (1.25) (0.33) (1.99) (0.85) (1.02)
--------- --------- --------- --------- ---------
Change in net asset value (0.15) 1.44 (0.13) 0.27 0.76
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 13.92 $ 14.07 $ 12.63 $ 12.76 $ 12.49
========= ========= ========= ========= =========
Total return(1) 8.01% 14.03% 14.67% 9.03% 15.44%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $379,445 $429,655 $407,625 $426,194 $527,432
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.21% 2.21% 2.29% 2.34% 2.29%
Net investment income 1.43% 2.07%(5) 1.70%(5) 1.94%(5) 2.99%(5)
Portfolio turnover 50% 62% 168% 187% 239%
</TABLE>
<TABLE>
<CAPTION>
CLASS I
-------------------------------------------------
FROM
YEAR ENDED DECEMBER 31 INCEPTION
----------------------------------- 11/1/96 TO
1999 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.31 $ 13.05 $ 12.99 $ 13.02
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.36(4) 0.56(5) 0.09(5) 0.05(5)
Net realized and unrealized gain (loss) 0.91 1.41 1.96 0.45
--------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 1.27 1.97 2.05 0.50
--------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.29) (0.67) -- (0.04)
Dividends from net realized gains (1.11) (0.04) (1.99) (0.49)
--------- --------- --------- ---------
TOTAL DISTRIBUTIONS (1.40) (0.71) (1.99) (0.53)
--------- --------- --------- ---------
Change in net asset value (0.13) 1.26 0.06 (0.03)
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 14.18 $ 14.31 $ 13.05 $ 12.99
========= ========= ========= =========
Total return(1) 9.08% 15.16% 15.88% 3.83%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $2,214 $1,848 $2,645 $2,893
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.21% 1.21% 1.29% 1.34%(2)
Net investment income 2.43% 3.07%(5) 2.70%(5) 2.94%(2)(5)
Portfolio turnover 50% 62% 168% 187%
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized.
(3) Not annualized.
(4) Computed using average shares outstanding.
(5) Includes realized gains and losses on foreign currency transactions.
72 See Notes to Financial Statements
<PAGE>
PHOENIX-ZWEIG STRATEGY FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM
Q: HOW WOULD YOU DESCRIBE THE FUND'S INVESTMENT OBJECTIVE AND STRATEGY?
A: In managing the Fund, we focus on participating in the long-term growth
potential of U.S. stocks, while limiting losses during declining markets through
a flexible investment approach.
Q: HOW DID THE FUND PERFORM DURING 1999?
A: For the 12 months ended December 31, 1999, Class A shares were up 2.63%,
Class B shares gained 1.91%, Class C shares rose 1.94% and Class I shares
returned 2.96%. The return for the S&P 500 Index(1) was 21.14% for the same time
period. All performance figures assume the reinvestment of dividends and exclude
the effect of sales charges.
Q: HOW DID THE FUND'S EQUITY EXPOSURE CHANGE DURING THE YEAR?
A: We systematically reduced our equity exposure throughout the year, from 84%
at the beginning of 1999 to 56% at the end of December. We reduced the Fund's
market exposure due to a significant deterioration in both our monetary and
sentiment indicators. In our opinion, the bedrock of the long bull market has
been falling interest rates and a low inflation environment. The recent increase
in bond yields, coupled with slightly higher inflation, may signal an end to
that environment. In addition, our sentiment model, which considers high
investor optimism a negative, also deteriorated as investors grew more bullish
as the market rose.
Q: HOW DID THE FUND'S EQUITY PORTION FARE THIS YEAR?
A: Our disciplined stock selection process, which has been very successful over
time, was challenged this year. The narrowness of the market, in which a limited
number of stocks performed extremely well while the majority languished,
contributed to the difficult environment. In such a narrow market, owning a
well-diversified portfolio is generally an impediment, not an advantage.
In addition, valuation did not seem to matter in 1999. The stocks that
performed the best were those with the highest price/earnings multiples and
those with no earnings at all. This phenomenon was most evident among technology
stocks, where investors seemed willing to pay any price to participate in that
high-flying sector. Our stock selection discipline is designed to identify
likely outperformers through an in-depth analysis of both growth and value
characteristics. The stocks we favor demonstrate reasonable P/E ratios and
above-average earnings growth rates. Even though paying attention to relative
value was a disadvantage in 1999, we believe it will ultimately reassert itself
as a winning investment style. Of course, past performance is not indicative of
future results.
(1) THE S&P 500 INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF STOCK MARKET
TOTAL RETURN PERFORMANCE.
(2) THE NASDAQ COMPOSITE INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF
PRIMARILY TECHNOLOGY STOCK TOTAL RETURN PERFORMANCE, SINCE THE INDEX IS TWO-
THIRD COMPOSED OF TECHNOLOGY STOCKS.
THE INDICES ARE NOT AVAILABLE FOR DIRECT INVESTMENT.
73
<PAGE>
PHOENIX-ZWEIG STRATEGY FUND (CONTINUED)
Q: HOW IS THE FUND CURRENTLY STRUCTURED?
A: The focal point of the Fund remains the asset allocation strategy determined
by Dr. Martin Zweig and the analysts of Zweig Consulting. Stock selection will
continue to be quantitatively driven, but we intend to increase the market
capitalization of the portfolio, concentrating on the 750 largest companies as
opposed to the 1,000 largest. This will give the Fund a true large-cap focus. We
also intend to align the Fund's industry group weightings more closely with
those of the S&P 500 Index. We believe these changes will allow shareholders to
benefit from our asset allocation without undue exposure to stock selection
risk.
Q: WHAT IS YOUR OUTLOOK?
A: Looking ahead, we are concerned with the rise in interest rates and
inflation. The Fed has raised short-term interest rates three times recently and
seems poised for continued tightening moves. Currently, our models indicate that
any upside in the market is likely to be limited unless macroeconomic conditions
improve. We continue to monitor events and are poised to respond quickly to
changes in the environment.
JANUARY 18, 2000
74
<PAGE>
Phoenix-Zweig Strategy Fund
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 12/31/99
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR 5 YEARS 10 YEARS TO 12/31/99 DATE
------ ------- -------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Class A Shares at NAV(2) 2.63% 10.95% 9.76% -- --
Class A Shares at POP(3) (3.02) 9.70 9.15 -- --
Class B Shares at NAV(2) 1.91 -- -- 6.31% 4/8/96
Class B Shares with CDSC(4) (1.13) -- -- 5.79 4/8/96
Class C Shares at NAV(2) 1.94 10.17 -- 8.67 2/3/92
Class C Shares with CDSC(4) 1.94 10.17 -- 8.67 2/3/92
Class I Shares at NAV(2) 2.96 -- -- 7.80 11/1/96
S&P 500 Index(7) 21.14 28.66 18.25 Note 6 Note 6
</TABLE>
<TABLE>
<C> <S>
(1) Total returns are historical and include changes in share
price and the reinvestment of both dividends and capital
gains distributions.
(2) "NAV" (Net Asset Value) total returns do not include the
effect of any sales charge.
(3) "POP" (Public Offering Price) total returns include the
effect of the maximum front-end 5.50% sales charge.
(4) CDSC (contingent deferred sales charge) is applied to
redemptions of certain classes of shares that do not have
a sales charge applied at the time of purchase. CDSC
charges for B shares decline from 5% to 0% over a five
year period. CDSC charges for C shares are 1.25% in the
first year and 0% thereafter.
(5) This chart illustrates POP returns on Class A Shares
since inception. Returns on Class B, Class C and Class I
Shares will vary due to differing sales charges.
(6) Index performance is 26.92% for Class B (since 4/8/96),
20.25% for Class C (since 2/3/92) and 28.26% for
Class I (since 11/1/96), respectively.
(7) The S&P 500 Index is an unmanaged, commonly used measure
of stock market total return performance. The Index's
performance does not reflect sales charges.
All returns represent past performance which may not be
indicative of future performance. The investment return
and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth
more or less than their original cost.
</TABLE>
GROWTH OF $10,000 PERIODS ENDING 12/31
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PHOENIX-ZWEIG STRATEGY
<S> <C> <C>
Fund Class A(5) S&P 500 Index(7)
89 $9,450 $10,000
90 $9,246 $9,681
91 $11,406 $12,637
92 $12,274 $13,609
93 $14,112 $14,970
94 $14,273 $15,168
95 $17,857 $20,857
96 $20,179 $25,706
97 $23,825 $34,286
98 $23,377 $44,145
99 $23,992 $53,476
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
12/31/89 in Class A shares and reflects the maximum sales charge of 5.50% on the
initial investment. Performance assumes dividends and capital gains are
reinvested. The performance of other share classes will be greater or less than
that shown based on differences in inception dates, fees and sales charges.
SECTOR WEIGHTINGS 12/31/99
As a percentage of equity holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Consumer Cyclicals 25%
Technology 18%
Financials 13%
Utilities 11%
Energy 10%
Consumer Staples 8%
Capital Goods 4%
Other 11%
</TABLE>
75
<PAGE>
Phoenix-Zweig Strategy Fund
TEN LARGEST HOLDINGS AT DECEMBER 31, 1999 (AS A PERCENTAGE OF TOTAL NET ASSETS)
<TABLE>
<C> <S> <C>
1. Wal-Mart Stores, Inc. 1.8%
ONE OF THE LARGEST U.S. DISCOUNT RETAILERS
2. General Motors Corp. 1.6%
A LEADER IN THE AUTOMOTIVE INDUSTRY
3. ENI Sponsored ADR 1.6%
ONE OF THE WORLD'S MAJOR INTEGRATED OIL AND GAS COMPANIES
4. Ford Motor Co. 1.5%
MANUFACTURES AND SELLS AUTOMOBILES, TRUCKS AND RELATED PARTS
GLOBALLY
5. Bestfoods 1.4%
INTERNATIONAL FOOD PROCESSOR
6. McGraw-Hill Cos., Inc. (The) 1.4%
PUBLISHER OF BOOKS AND EDUCATIONAL MATERIALS
7. Edison International 1.3%
UTILITY HOLDING COMPANY
8. Public Service Enterprise Group, Inc. 1.3%
ELECTRIC AND GAS UTILITY HOLDING COMPANY
9. Johnson & Johnson 1.3%
MANUFACTURER OF HEALTH-CARE PRODUCTS
10. Home Depot, Inc. (The) 1.3%
LEADING HOME IMPROVEMENT RETAILER
</TABLE>
INVESTMENTS AT DECEMBER 31, 1999
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMON STOCKS--51.1%
AEROSPACE/DEFENSE--0.1%
Boeing Co. (The)........................ 12,200 $ 507,062
AUTO PARTS & EQUIPMENT--0.0%
Borg-Warner Automotive, Inc............. 100 4,050
AUTOMOBILES--3.1%
Ford Motor Co........................... 128,300 6,856,031
General Motors Corp..................... 99,600 7,239,675
------------
14,095,706
------------
BANKS (MAJOR REGIONAL)--0.5%
AmSouth BanCorp......................... 10,900 210,506
Comerica, Inc........................... 500 23,344
Fifth Third Bancorp..................... 11,900 873,162
Huntington Bancshares, Inc.............. 12,300 293,662
SunTrust Banks, Inc..................... 7,000 481,687
Synovus Financial Corp.................. 13,000 258,375
------------
2,140,736
------------
BANKS (REGIONAL)--1.2%
Pacific Century Financial Corp.......... 34,100 637,244
UnionBanCal Corp........................ 119,300 4,704,894
------------
5,342,138
------------
BEVERAGES (ALCOHOLIC)--0.8%
Coors (Adolph) Co. Class B.............. 72,600 3,811,500
BIOTECHNOLOGY--0.7%
Amgen, Inc.(b).......................... 16,400 985,025
Biogen, Inc.(b)......................... 11,700 988,650
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
BIOTECHNOLOGY--CONTINUED
Chiron Corp.(b)......................... 19,400 $ 822,075
MedImmune, Inc. (b)..................... 3,600 597,150
------------
3,392,900
------------
BUILDING MATERIALS--0.1%
Lafarge Corp............................ 3,000 82,875
USG Corp................................ 9,400 442,975
Valspar Corp. (The)..................... 200 8,375
------------
534,225
------------
CHEMICALS (SPECIALTY)--0.1%
Albemarle Corp.......................... 14,000 268,625
COMMUNICATIONS EQUIPMENT--1.4%
ADC Telecommunications, Inc.(b)......... 12,000 870,750
ADTRAN, Inc.(b)......................... 2,100 108,019
CommScope, Inc.(b)...................... 1,100 44,344
Comverse Technology, Inc.(b)............ 1,200 173,700
Motorola, Inc........................... 100 14,725
QUALCOMM, Inc.(b)....................... 24,000 4,230,000
Scientific-Atlanta, Inc................. 11,100 617,437
Tellabs, Inc.(b)........................ 8,800 564,850
------------
6,623,825
------------
COMPUTERS (HARDWARE)--0.5%
Electronics for Imaging, Inc.(b)........ 800 46,500
Gateway, Inc.(b)........................ 10,500 756,656
Sun Microsystems, Inc.(b)............... 18,300 1,417,106
------------
2,220,262
------------
</TABLE>
76 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Strategy Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMPUTERS (NETWORKING)--0.2%
3Com Corp.(b)........................... 15,600 $ 733,200
COMPUTERS (PERIPHERALS)--1.7%
EMC Corp.(b)............................ 49,000 5,353,250
Lexmark International Group, Inc. Class
A(b).................................... 1,200 108,600
Seagate Technology, Inc.(b)............. 52,000 2,421,250
------------
7,883,100
------------
COMPUTERS (SOFTWARE & SERVICES)--3.3%
Adobe Systems, Inc...................... 54,900 3,692,025
America Online, Inc.(b)................. 11,700 882,619
American Management Systems, Inc.(b).... 200 6,275
Compuware Corp.(b)...................... 26,700 994,575
Electronic Arts, Inc.(b)................ 3,000 252,000
InfoSpace.com, Inc.(b).................. 500 107,000
Intuit, Inc.(b)......................... 12,100 725,244
Mercury Interactive Corp................ 1,500 161,906
Microsoft Corp.(b)...................... 22,800 2,661,900
Oracle Corp.(b)......................... 19,500 2,185,219
Portal Software, Inc.(b)................ 1,800 185,175
Razorfish, Inc.(b)...................... 400 38,050
RealNetworks, Inc.(b)................... 1,100 133,306
Siebel Systems, Inc. (b)................ 2,400 201,600
TIBCO Software, Inc.(b)................. 200 30,600
USWeb Corp.(b).......................... 2,300 102,206
VeriSign, Inc.(b)....................... 1,400 267,050
Yahoo!, Inc.(b)......................... 5,400 2,336,512
------------
14,963,262
------------
CONSTRUCTION (CEMENT & AGGREGATES)--0.1%
Southdown, Inc.......................... 4,900 252,962
CONSUMER (JEWELRY, NOVELTIES & GIFTS)--0.0%
Lancaster Colony Corp................... 6,400 212,000
CONSUMER FINANCE--0.2%
MBNA Corp............................... 11,700 318,825
PMI Group, Inc. (The)................... 3,150 153,759
Providian Financial Corp................ 2,700 245,869
------------
718,453
------------
CONTAINERS & PACKAGING (PAPER)--0.0%
Temple-Inland, Inc...................... 3,300 217,594
DISTRIBUTORS (FOOD & HEALTH)--0.3%
Patterson Dental Co.(b)................. 7,000 298,375
SUPERVALU, Inc.......................... 15,800 316,000
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
DISTRIBUTORS (FOOD & HEALTH)--CONTINUED
SYSCO Corp.............................. 21,500 $ 850,594
------------
1,464,969
------------
ELECTRIC COMPANIES--5.6%
Constellation Energy Group.............. 56,400 1,635,600
Dominion Resources, Inc................. 800 31,400
Edison International.................... 233,400 6,112,162
Entergy Corp............................ 122,400 3,151,800
FirstEnergy Corp........................ 76,200 1,728,787
Florida Progress Corp................... 49,200 2,081,775
Minnesota Power, Inc.................... 3,400 57,587
OGE Energy Corp......................... 1,900 36,100
Public Service Enterprise Group, Inc.... 174,500 6,074,781
Reliant Energy, Inc..................... 19,300 441,487
Southern Co. (The)...................... 8,000 188,000
Texas Utilities Co...................... 15,300 544,106
Unicom Corp............................. 102,500 3,433,750
------------
25,517,335
------------
ELECTRICAL EQUIPMENT--1.3%
Brocade Communications Systems,
Inc.(b)................................. 2,400 424,800
Solectron Corp.(b)...................... 57,300 5,450,662
------------
5,875,462
------------
ELECTRONICS (INSTRUMENTATION)--0.3%
PerkinElmer, Inc........................ 32,100 1,338,169
ELECTRONICS (SEMICONDUCTORS)--1.2%
Adaptec, Inc.(b)........................ 5,400 269,325
Altera Corp.(b)......................... 9,500 470,844
Amdocs Ltd.(b).......................... 5,400 186,300
Analog Devices, Inc.(b)................. 21,600 2,008,800
Conexant Systems, Inc.(b)............... 6,800 451,350
Cypress Semiconductor Corp.(b).......... 2,300 74,462
Microchip Technology, Inc.(b)........... 4,200 287,437
Micron Technology, Inc.(b).............. 5,400 419,850
Texas Instruments, Inc.................. 11,000 1,065,625
Xilinx, Inc.(b)......................... 5,800 263,719
------------
5,497,712
------------
ENGINEERING & CONSTRUCTION--0.3%
Fluor Corp.............................. 25,800 1,183,575
EQUIPMENT (SEMICONDUCTOR)--0.7%
Applied Materials, Inc.(b).............. 24,500 3,103,844
FINANCIAL (DIVERSIFIED)--1.6%
Citigroup, Inc.......................... 49,010 2,723,118
</TABLE>
See Notes to Financial Statements 77
<PAGE>
Phoenix-Zweig Strategy Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
FINANCIAL (DIVERSIFIED)--CONTINUED
Fannie Mae.............................. 100 $ 6,244
Financial Security Assurance Holdings
Ltd..................................... 20,300 1,058,137
Morgan Stanley Dean Witter & Co......... 24,500 3,497,375
SEI Investments Co...................... 100 11,902
------------
7,296,776
------------
FOODS--2.5%
Bestfoods............................... 124,400 6,538,775
ConAgra, Inc............................ 42,600 961,162
Dean Foods Co........................... 5,500 218,625
Hormel Foods Corp....................... 47,400 1,925,625
International Home Foods, Inc.(b)....... 300 5,212
Keebler Foods Co.(b).................... 23,800 669,375
McCormick & Co., Inc.................... 38,000 1,130,500
Quaker Oats Co. (The)................... 200 13,125
------------
11,462,399
------------
FOOTWEAR--0.9%
NIKE, Inc. Class B...................... 79,100 3,920,394
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--0.0%
Harrah's Entertainment, Inc.(b)......... 4,200 111,037
HEALTH CARE (DIVERSIFIED)--1.3%
Johnson & Johnson....................... 65,200 6,071,750
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.1%
Pfizer, Inc............................. 11,700 379,519
HEALTH CARE (MANAGED CARE)--0.1%
United HealthCare Corp.................. 6,700 355,937
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.2%
Bard (C.R.), Inc........................ 500 26,500
Baxter International, Inc............... 12,500 785,156
Boston Scientific Corp.(b).............. 11,700 255,937
------------
1,067,593
------------
HEALTH CARE (SPECIALIZED SERVICES)--0.1%
Lincare Holdings, Inc.(b)............... 8,200 284,437
HOMEBUILDING--0.1%
Clayton Homes, Inc...................... 700 6,431
Pulte Corp.............................. 24,300 546,750
------------
553,181
------------
HOUSEHOLD FURNISHINGS & APPLIANCES--0.1%
Whirlpool Corp.......................... 3,700 240,731
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
INSURANCE (LIFE/HEALTH)--0.2%
AFLAC, Inc.............................. 16,600 $ 783,312
Jefferson-Pilot Corp.................... 200 13,650
MONY Group, Inc. (The).................. 9,400 274,363
------------
1,071,325
------------
INSURANCE (MULTI-LINE)--0.0%
CIGNA Corp.............................. 300 24,169
INSURANCE (PROPERTY-CASUALTY)--1.0%
Allmerica Financial Corp................ 19,600 1,090,250
MGIC Investment Corp.................... 52,700 3,171,881
Radian Group, Inc....................... 9,100 434,525
------------
4,696,656
------------
INVESTMENT BANKING/BROKERAGE--1.5%
AXA Financial, Inc...................... 200 6,775
Lehman Brothers Holdings, Inc........... 67,000 5,674,063
Merrill Lynch & Co., Inc................ 11,700 976,950
------------
6,657,788
------------
LEISURE TIME (PRODUCTS)--0.0%
Brunswick Corp.......................... 3,000 66,750
MACHINERY (DIVERSIFIED)--0.1%
Dover Corp.............................. 13,500 612,563
Ingersoll-Rand Co....................... 300 16,519
------------
629,082
------------
MANUFACTURING (DIVERSIFIED)--0.5%
Danaher Corp............................ 6,100 294,325
ITT Industries, Inc..................... 600 20,063
Johnson Controls, Inc................... 7,900 449,313
National Service Industries, Inc........ 26,100 769,950
Trinity Industries, Inc................. 23,700 673,969
------------
2,207,620
------------
MANUFACTURING (SPECIALIZED)--0.3%
Pall Corp............................... 54,400 1,173,000
METALS MINING--0.0%
Phelps Dodge Corp....................... 200 13,425
NATURAL GAS--0.5%
Coastal Corp. (The)..................... 61,000 2,161,688
KeySpan Corp............................ 4,100 95,069
------------
2,256,757
------------
</TABLE>
78 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Strategy Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
OIL & GAS (EXPLORATION & PRODUCTION)--0.2%
Apache Corp............................. 3,800 $ 140,363
Kerr-McGee Corp......................... 8,700 539,400
Murphy Oil Corp......................... 300 17,213
------------
696,976
------------
OIL (DOMESTIC INTEGRATED)--1.2%
Amerada Hess Corp....................... 2,300 130,525
Atlantic Richfield Co................... 48,400 4,186,600
Occidental Petroleum Corp............... 20,200 436,825
USX-Marathon Group...................... 34,600 854,188
------------
5,608,138
------------
OIL (INTERNATIONAL INTEGRATED)--1.1%
Chevron Corp............................ 20,400 1,767,150
Texaco, Inc............................. 61,500 3,340,219
------------
5,107,369
------------
PAPER & FOREST PRODUCTS--1.5%
Boise Cascade Corp...................... 400 16,200
Champion International Corp............. 7,600 470,725
Georgia-Pacific Group................... 2,000 101,500
International Paper Co.................. 51,100 2,883,956
Westvaco Corp........................... 3,400 110,925
Weyerhaeuser Co......................... 20,100 1,443,431
Willamette Industries, Inc.............. 40,500 1,880,719
------------
6,907,456
------------
PHOTOGRAPHY/IMAGING--0.0%
IKON Office Solutions, Inc.............. 5,200 35,425
Zebra Technologies Corp. Class A(b)..... 1,100 64,350
------------
99,775
------------
POWER PRODUCERS (INDEPENDENT)--0.2%
Calpine Corp.(b)........................ 11,900 761,600
PUBLISHING--1.4%
McGraw-Hill Cos., Inc. (The)............ 101,600 6,261,100
PUBLISHING (NEWSPAPERS)--1.1%
Dow Jones & Co., Inc.................... 42,400 2,883,200
Gannett Co., Inc........................ 10,500 856,406
Knight-Ridder, Inc...................... 10,400 618,800
Tribune Co.............................. 13,800 759,863
------------
5,118,269
------------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
RAILROADS--0.0%
Kansas City Southern Industries, Inc.... 3,000 $ 223,875
REITS--0.2%
Apartment Investment & Management Co.... 15,400 613,113
Arden Realty, Inc....................... 1,200 24,075
Duke-Weeks Realty Corp.................. 2,400 46,800
Equity Residential Properties Trust..... 1,500 64,031
General Growth Properties, Inc.......... 300 8,400
Liberty Property Trust.................. 2,400 58,200
------------
814,619
------------
RESTAURANTS--0.4%
Brinker International, Inc.(b).......... 700 16,800
Darden Restaurants, Inc................. 98,500 1,785,313
------------
1,802,113
------------
RETAIL (BUILDING SUPPLIES)--1.5%
Home Depot, Inc. (The).................. 83,550 5,728,397
Lowe's Companies., Inc.................. 18,500 1,105,375
------------
6,833,772
------------
RETAIL (COMPUTERS & ELECTRONICS)--0.8%
Best Buy Co., Inc.(b)................... 37,000 1,856,938
Circuit City Stores-Circuit City
Group................................... 24,200 1,090,513
Tandy Corp.............................. 19,100 939,481
------------
3,886,932
------------
RETAIL (DEPARTMENT STORES)--0.4%
Kohl's Corp.(b)......................... 27,500 1,985,156
RETAIL (DISCOUNTERS)--0.9%
Ross Stores, Inc........................ 220,500 3,955,219
RETAIL (GENERAL MERCHANDISE)--2.6%
BJ's Wholesale Club, Inc.(b)............ 1,300 47,450
Dayton Hudson Corp...................... 45,200 3,319,375
Wal-Mart Stores, Inc.................... 121,900 8,426,338
------------
11,793,163
------------
RETAIL (HOME SHOPPING)--0.0%
CDW Computer Centers, Inc.(b)........... 1,100 86,488
RETAIL (SPECIALTY)--0.7%
Staples, Inc.(b)........................ 3,700 76,775
Tiffany & Co............................ 32,400 2,891,700
Zale Corp.(b)........................... 8,800 425,700
------------
3,394,175
------------
</TABLE>
See Notes to Financial Statements 79
<PAGE>
Phoenix-Zweig Strategy Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
RETAIL (SPECIALTY-APPAREL)--0.2%
American Eagle Outfitters, Inc.(b)...... 5,400 $ 243,000
Gap, Inc. (The)......................... 18,000 828,000
TJX Cos., Inc. (The).................... 2,400 49,050
------------
1,120,050
------------
SAVINGS & LOAN COMPANIES--1.2%
Bank United Corp. Class A............... 1,800 49,050
Golden West Financial Corp.............. 160,600 5,380,100
Roslyn Bancorp, Inc..................... 5,370 99,345
------------
5,528,495
------------
SERVICES (COMMERCIAL & CONSUMER)--0.1%
Cendant Corp.(b)........................ 3,900 103,594
Profit Recovery Group International,
Inc. (The)(b)........................... 5,800 154,063
------------
257,657
------------
SERVICES (DATA PROCESSING)--0.1%
Concord EFS, Inc.(b).................... 1,000 25,750
DST Systems, Inc.(b).................... 7,400 564,713
------------
590,463
------------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.1%
Western Wireless Corp. Class A(b)....... 4,900 327,075
TELECOMMUNICATIONS (LONG DISTANCE)--0.4%
Covad Communications Group, Inc.(b)..... 4,600 257,313
MCI WorldCom, Inc.(b)................... 28,050 1,488,403
------------
1,745,716
------------
TELEPHONE--0.0%
BellSouth Corp.......................... 2,000 93,625
TEXTILES (HOME FURNISHINGS)--0.0%
Mohawk Industries, Inc.(b).............. 100 2,638
TRUCKS & PARTS--0.0%
PACCAR, Inc............................. 1,300 57,606
- --------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $202,757,218) 233,502,512
- --------------------------------------------------------------------
FOREIGN COMMON STOCKS--5.6%
BANKS (MONEY CENTER)--0.1%
Banco Santander Central Hipano, SA
Sponsored ADR (Spain)................... 26,600 310,887
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMUNICATIONS EQUIPMENT--0.6%
Nokia Oyj Sponsored ADR (Finland)....... 14,800 $ 2,812,000
CONSTRUCTION (CEMENT & AGGREGATES)--0.0%
Hanson PLC Sponsored ADR (United
Kingdom)................................ 800 32,350
ELECTRICAL EQUIPMENT--0.0%
SONY Corp. Sponsored ADR (Japan)........ 900 256,275
ELECTRONICS (SEMICONDUCTORS)--0.3%
Taiwan Semiconductor Manufacturing Co.
Ltd. Sponsored ADR (Taiwan)(b).......... 28,600 1,287,000
ENTERTAINMENT--0.1%
Seagram Co. Ltd. (The) (Canada)......... 11,000 494,312
IRON & STEEL--0.2%
Pohang Iron & Steel Co. Ltd. Sponsored
ADR (South Korea)....................... 30,200 1,057,000
MACHINERY (DIVERSIFIED)--0.1%
CNH Global N.V. (Netherlands)........... 22,400 298,200
OIL (INTERNATIONAL INTEGRATED)--3.1%
BP Amoco PLC Sponsored ADR (United
Kingdom)................................ 58,600 3,475,712
ENI Sponsored ADR (Italy)............... 130,800 7,210,350
Royal Dutch Petroleum Co.
(Netherlands)........................... 3,200 193,400
Total Fina SA Sponsored ADR (France).... 49,200 3,407,100
------------
14,286,562
------------
RAILROADS--0.4%
Canadian National Railway Co.
(Canada)................................ 77,000 2,026,063
SPECIALTY PRINTING--0.2%
Quebecor Printing, Inc. (Canada)........ 33,410 743,373
TELECOMMUNICATIONS (LONG DISTANCE)--0.5%
Tele Denmark A/S Sponsored ADR
(Denmark)............................... 20,900 788,975
Telefonia SA Sponsored ADR (Spain)(b)... 9,378 739,104
Telefonos de Mexico SA ADR (Mexico)..... 6,300 708,750
------------
2,236,829
------------
- --------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $22,965,381) 25,840,851
- --------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--56.7%
(IDENTIFIED COST $225,722,599) 259,343,363
- --------------------------------------------------------------------
</TABLE>
80 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Strategy Fund
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
-------- ------------
SHORT-TERM OBLIGATIONS--44.1%
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--0.2%
U.S. Treasury Bill 5.05%, 2/3/00(c)..... $ 1,000 $ 995,371
FEDERAL AGENCY SECURITIES--30.4%
FMC Discount Note 5.59%, 1/11/00........ 10,000 9,984,472
FMC Discount Note 4%, 1/13/00........... 10,000 9,986,667
FMC Discount Note 5.59%, 1/13/00........ 10,000 9,981,366
FMC Discount Note 5.59%, 1/25/00........ 5,000 4,981,367
FMC Discount Note 5.60%, 1/27/00........ 10,000 9,959,555
FMC Discount Note 5.70%, 1/31/00........ 10,000 9,952,500
FHLB Discount Corp. 5.74%, 2/9/00....... 10,000 9,937,817
FMC Discount Note 5.60%, 2/11/00........ 10,000 9,936,222
FMC Discount Note 5.75%, 2/15/00........ 10,000 9,928,125
FMC Discount Note 5.59%, 2/17/00........ 15,000 14,890,529
FMC Discount Note 5.59%, 2/23/00........ 15,000 14,876,554
Fannie Mae Discount Note 5.67%,
2/24/00................................. 15,000 14,872,425
Fannie Mae Discount Note 5.64%,
3/9/00.................................. 10,000 9,896,050
------------
139,183,649
------------
<CAPTION>
PAR
VALUE
(000) VALUE
-------- ------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS--13.5%
Morgan Stanley & Co., Inc. repurchase
agreement 2.75%, dated 12/31/99 due
1/3/00, repurchase price $31,502,218
collateralized by Fannie Mae Bonds 5.50%
to 8.50%, 2/1/08 to 6/1/29, market value
$32,346,047............................. $ 31,495 $ 31,495,000
Prudential Securities, Inc. repurchase
agreement, 2.60%, dated 12/31/99 due
1/3/00, repurchase price $30,006,500
collateralized by U.S. Treasury Note
5.50%, 3/31/03 and Fannie Mae Discount
Note 5.76%, 3/23/00, market value
$30,600,064............................. 30,000 30,000,000
------------
61,495,000
------------
- --------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $201,671,437) 201,674,020
- --------------------------------------------------------------------
TOTAL INVESTMENTS--100.8%
(IDENTIFIED COST $427,394,036) 461,017,383(a)
Cash and receivables, less liabilities--(0.8%) (3,686,515)
------------
NET ASSETS--100.0% $457,330,868
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $40,521,797 and gross
depreciation of $7,519,117 for federal income tax purposes. At December 31,
1999, the aggregate cost of securities for federal income tax purposes was
$428,014,703.
(b) Non-income producing.
(c) All or a portion segregated as collateral.
See Notes to Financial Statements
81
<PAGE>
Phoenix-Zweig Strategy Fund
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS
Investment securities at value,
exclusive of repurchase
agreements (Identified cost
$365,899,036) $399,522,383
Repurchase agreements at value
(Identified cost $61,495,000) 61,495,000
Cash 114,061
Receivables
Dividends and interest 250,510
Fund shares sold 45,423
Prepaid expenses 15,378
------------
Total assets 461,442,755
------------
LIABILITIES
Payables
Fund shares repurchased 2,978,671
Transfer agent fee 403,571
Investment advisory fee 293,273
Distribution fee 257,826
Financial agent fee 41,624
Trustees' fee 6,132
Accrued expenses 130,790
------------
Total liabilities 4,111,887
------------
NET ASSETS $457,330,868
============
NET ASSETS CONSIST OF:
Capital paid in on shares of
beneficial interest $410,273,803
Undistributed net investment income 1,979,598
Accumulated net realized gain 11,454,120
Net unrealized appreciation 33,623,347
------------
NET ASSETS $457,330,868
============
CLASS A
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $223,269,034) 19,866,975
Net asset value price per share $11.24
Offering price per share
$11.24/(1-5.50%) $11.89
CLASS B
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $47,557,148) 4,195,342
Net asset value and offering price
per share $11.34
CLASS C
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $184,924,081) 16,354,369
Net asset value and offering price
per share $11.31
CLASS I
Shares of beneficial interest
outstanding, $0.10 par value,
unlimited authorization (Net
Assets $1,580,605) 138,666
Net asset value and offering price
per share $11.40
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 11,922,204
Dividends 6,519,682
Foreign taxes withheld (53,139)
------------
Total investment income 18,388,747
------------
EXPENSES
Investment advisory fee 4,917,833
Distribution fee, Class A 912,947
Distribution fee, Class B 647,973
Distribution fee, Class C 2,850,596
Financial agent fee 170,701
Transfer agent 979,918
Printing 105,419
Custodian 104,731
Registration 43,501
Professional 41,932
Trustees 22,576
Miscellaneous 29,523
------------
Total expenses 10,827,650
------------
NET INVESTMENT INCOME 7,561,097
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain on securities 77,850,483
Net realized gain on futures
contracts 11,888,197
Net change in unrealized appreciation
(depreciation) on investments (87,912,801)
------------
NET GAIN ON INVESTMENTS 1,825,879
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 9,386,976
============
</TABLE>
82 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Strategy Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
12/31/99 12/31/98
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 7,561,097 $ 6,756,292
Net realized gain (loss) 89,738,680 33,592,097
Net change in unrealized appreciation (depreciation) (87,912,801) (77,620,080)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS 9,386,976 (37,271,691)
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (5,530,836) (5,288,602)
Net investment income, Class B (750,758) (265,467)
Net investment income, Class C (2,960,713) (1,003,670)
Net investment income, Class I (38,103) (13,864)
Net realized gains, Class A (56,259,519) (13,202,503)
Net realized gains, Class B (12,108,686) (2,616,561)
Net realized gains, Class C (47,943,073) (13,842,245)
Net realized gains, Class I (369,679) (43,465)
------------ ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (125,961,367) (36,276,377)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (22,172,492 and 2,574,127
shares, respectively) 328,411,814 39,754,513
Net asset value of shares issued from reinvestment of
distributions
(5,016,929 and 1,028,617 shares, respectively) 56,137,856 15,080,997
Cost of shares repurchased (34,971,145 and 11,819,362
shares, respectively) (514,202,909) (180,481,679)
------------ ------------
Total (129,653,239) (125,646,169)
------------ ------------
CLASS B
Proceeds from sales of shares (135,743 and 1,471,884
shares, respectively) 1,978,122 23,953,900
Net asset value of shares issued from reinvestment of
distributions
(1,053,995 and 157,763 shares, respectively) 11,808,517 2,279,331
Cost of shares repurchased (2,534,806 and 933,992 shares,
respectively) (36,739,583) (14,238,733)
------------ ------------
Total (22,952,944) 11,994,498
------------ ------------
CLASS C
Proceeds from sales of shares (347,368 and 2,788,560
shares, respectively) 5,067,332 44,887,189
Net asset value of shares issued from reinvestment of
distributions
(4,190,253 and 780,919 shares, respectively) 46,828,670 11,238,658
Cost of shares repurchased (16,696,607 and 12,480,544
shares, respectively) (242,708,801) (187,646,203)
------------ ------------
Total (190,812,799) (131,520,356)
------------ ------------
CLASS I
Proceeds from sales of shares (13,384 and 34,727 shares,
respectively) 195,000 521,327
Net asset value of shares issued from reinvestment of
distributions
(35,899 and 3,891 shares, respectively) 407,769 57,327
Cost of shares repurchased (4,761 and 11,915 shares,
respectively) (72,123) (188,000)
------------ ------------
Total 530,646 390,654
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (342,888,336) (244,781,373)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (459,462,727) (318,329,441)
NET ASSETS
Beginning of period 916,793,595 1,235,123,036
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS)
OF $1,979,598 AND $64,606, RESPECTIVELY] $457,330,868 $916,793,595
============ ============
</TABLE>
See Notes to Financial Statements 83
<PAGE>
Phoenix-Zweig Strategy Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------
YEAR ENDED DECEMBER 31
-------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.80 $ 15.77 $ 15.01 $ 14.51 $ 12.36
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.22(4) 0.17 0.20 0.20 0.27
Net realized and unrealized gain (loss) 0.07 (0.48) 2.49 1.68 2.80
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.29 (0.31) 2.69 1.88 3.07
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.28) (0.18) (0.19) (0.20) (0.37)
Dividends from net realized gains (3.57) (0.48) (1.74) (1.18) (0.55)
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (3.85) (0.66) (1.93) (1.38) (0.92)
--------- --------- --------- --------- ---------
Change in net asset value (3.56) (0.97) 0.76 0.50 2.15
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 11.24 $ 14.80 $ 15.77 $ 15.01 $ 14.51
========= ========= ========= ========= =========
Total return(1) 2.63% (1.88)% 18.07% 13.00% 25.12%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $223,269 $409,065 $565,721 $581,149 $558,286
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.28% 1.24 % 1.24% 1.28% 1.27%
Net investment income 1.54% 0.97 % 1.20% 1.27% 1.92%
Portfolio turnover 141% 116 % 126% 181% 95%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------
FROM
YEAR ENDED DECEMBER 31 INCEPTION
----------------------------------- 4/8/96 TO
1999 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.90 $ 15.86 $ 15.07 $ 15.12
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.12(4) 0.05 0.07 0.06
Net realized and unrealized gain (loss) 0.07 (0.48) 2.53 1.13
--------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.19 (0.43) 2.60 1.19
--------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.18) (0.05) (0.07) (0.06)
Dividends from net realized gains (3.57) (0.48) (1.74) (1.18)
--------- --------- --------- ---------
TOTAL DISTRIBUTIONS (3.75) (0.53) (1.81) (1.24)
--------- --------- --------- ---------
Change in net asset value (3.56) (0.96) 0.79 (0.05)
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 11.34 $ 14.90 $ 15.86 $ 15.07
========= ========= ========= =========
Total return(1) 1.91% (2.61)% 17.33% 7.88%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $47,557 $82,531 $76,820 $42,317
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.98% 1.94 % 1.94% 1.98%(2)
Net investment income 0.84% 0.27 % 0.50% 0.57%(2)
Portfolio turnover 141% 116 % 126% 181%
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized.
(3) Not annualized.
(4) Computed using average shares outstanding.
84 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Strategy Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
-------------------------------------------------------------
YEAR ENDED DECEMBER 31
-------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.86 $ 15.81 $ 15.04 $ 14.56 $ 12.35
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.12(4) 0.05 0.07 0.11 0.16
Net realized and unrealized gain (loss) 0.07 (0.48) 2.52 1.66 2.82
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.19 (0.43) 2.59 1.77 2.98
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.17) (0.04) (0.08) (0.11) (0.22)
Dividends from net realized gains (3.57) (0.48) (1.74) (1.18) (0.55)
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (3.74) (0.52) (1.82) (1.29) (0.77)
--------- --------- --------- --------- ---------
Change in net asset value (3.55) (0.95) 0.77 0.48 2.21
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 11.31 $ 14.86 $ 15.81 $ 15.04 $ 14.56
========= ========= ========= ========= =========
Total return(1) 1.94% (2.64)% 17.30% 12.19% 24.26%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $184,924 $423,791 $591,512 $621,334 $530,300
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.98% 1.94 % 1.94% 1.98% 1.97%
Net investment income 0.81% 0.27 % 0.50% 0.57% 1.22%
Portfolio turnover 141% 116 % 126% 181% 95%
</TABLE>
<TABLE>
<CAPTION>
CLASS I
-------------------------------------------------
FROM
YEAR ENDED DECEMBER 31 INCEPTION
----------------------------------- 11/1/96 TO
1999 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.94 $ 15.87 $ 15.07 $ 15.42
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.28(4) 0.17 0.23 0.04
Net realized and unrealized gain (loss) 0.06 (0.45) 2.54 0.83
--------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.34 (0.28) 2.77 0.87
--------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.31) (0.17) (0.23) (0.04)
Dividends from net realized gains (3.57) (0.48) (1.74) (1.18)
--------- --------- --------- ---------
TOTAL DISTRIBUTIONS (3.88) (0.65) (1.97) (1.22)
--------- --------- --------- ---------
Change in net asset value (3.54) (0.93) 0.80 (0.35)
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 11.40 $ 14.94 $ 15.87 $ 15.07
========= ========= ========= =========
Total return(1) 2.96% (1.66)% 18.52% 5.68%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,581 $1,407 $1,070 $903
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 0.96% 0.94 % 0.94% 0.98%(2)
Net investment income 1.92% 1.27 % 1.50% 1.57%(2)
Portfolio turnover 141% 116 % 126% 181%
</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 85
<PAGE>
PHOENIX-ZWEIG TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
1. SIGNIFICANT ACCOUNTING POLICIES
On March 1, 1999, Phoenix Investment Partners, Ltd. ("Phoenix") completed the
acquisition of Zweig/Glaser Advisers LLC, the Trust's investment manager (the
"Manager"), and of Zweig Securities Corp., the Trust's distributor (the
"Distributor"). As a result, Zweig Series Trust changed its' name to
Phoenix-Zweig Trust and each of the Series in the Trust changed its' name by
adding Phoenix- to the beginning of each Series' name. In addition, Zweig/Glaser
Advisers LLC has succeeded Zweig/Glaser Advisers as the Manager and Phoenix
Equity Planning Corporation ("PEPCO") has succeeded Zweig Securities Corp. as
the Distributor. In order to continue to have access to the advisory and
consulting services of Dr. Martin E. Zweig and his associates, the Manager
entered into a sub-advisory servicing agreement with Zweig Consulting LLC.
The Phoenix Zweig Trust ("the Trust") is organized as a Delaware business
trust and is registered under the Investment Company Act of 1940, as amended, as
a diversified, open-end management investment company. To date, seven Funds are
offered for sale: Appreciation Fund, Foreign Equity Fund, Government Cash Fund,
Government Fund, Growth & Income Fund, Managed Assets and Strategy Fund. Each
Fund has distinct investment objectives. Each of the Funds (except Government
and Government Cash Funds) strives to increase investment value over the long
term (capital appreciation) consistent with preserving capital and reducing
portfolio exposure to market risk. The Government and Government Cash Funds
focus on returning high current income. The Government Cash Fund also strives to
maintain liquidity and preserve capital. Growth & Income Fund, in addition to
seeking capital appreciation, strives to provide income as a secondary
objective. Managed Assets strives to increase investment value from capital
appreciation, dividends and interest.
The Trust offers Class A, Class B, Class C and Class I shares on each Fund and
one additional class of shares, Class M on Government Cash Fund. Certain
Class A shares are sold with a front-end sales charge of up to 5.50% for all
funds except Government Fund which is sold with a front-end sales charge of up
to 4.75%. Certain Class A shares, except Government Cash Fund may be sold with a
1% contingent deferred sales charge if redeemed within one year of purchase.
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 1.25% contingent deferred sales charge if redeemed within
one year of purchase. Class I shares and Class M shares have no sales charge.
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 each 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 Trust 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:
Equity securities are valued at the last sale price, or if there had been no
sale that day, at the last bid price. 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 fair value as determined
in good faith by or under the direction of the Trustees.
The Government Cash Fund uses the amortized cost method of security valuation
which, in the opinion of the Trustees, represents the fair value of the
particular security. The Trustees monitor the deviations between the classes'
net asset value per share as determined by using available market quotations and
its amortized cost per share. If the deviation exceeds 1/2 of 1%, the Board of
Trustees will consider what action, if any, should be initiated to provide fair
valuation. This valuation procedure allows each class of the Fund to maintain a
constant net asset value of $1 per share.
B. SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are recorded on the trade date. Interest income is
recorded on the accrual basis. Dividend income is recorded on the ex-dividend
date or, in the case of certain foreign securities, as soon as the Fund is
notified. Interest income is recorded on the accrual basis. The Trust does not
amortize premiums except for the Government Cash Fund but does amortize
discounts using the effective interest method. Realized gains and losses are
determined on the identified cost basis.
C. INCOME TAXES:
Each Fund is treated as a separate taxable entity. It is the policy of each
Fund in the Trust 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, each
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.
86
<PAGE>
PHOENIX-ZWEIG TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 (CONTINUED)
D. DISTRIBUTIONS TO SHAREHOLDERS:
Distributions are recorded by each Fund 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, operating
losses 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, 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 Trust 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:
Each Fund (other than Government Cash 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.
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 each 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.
G. 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. Each Fund (other than Government Cash
Fund) may enter into financial futures contracts as a hedge against anticipated
changes in the market value of their portfolio securities. Upon entering into a
futures contract, the Funds are 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 Funds
agree 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
daily 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.
H. OPTIONS:
Each Fund (other than Government Cash Fund), may write covered options or
purchase options contracts for the purpose of hedging against changes in the
market value of the underlying securities or foreign currencies.
Each Fund will realize a gain or loss upon the expiration or closing of the
option transaction. Gains and losses on written options are reported separately
in the Statement of Operations. When a written option is exercised, the proceeds
on sales or amounts paid are adjusted by the amount of premium received. Options
written are reported as a liability in the Statement of Assets and Liabilities
and subsequently marked to market to reflect the current value of the option.
The risk associated with written options is that the change in value of options
contracts may not correspond to the change in value of the hedged instruments.
In addition, losses may arise from changes in the value of the underlying
instruments, or if a liquid secondary market does not exist for the contracts.
The Funds (other than Government Cash Fund) may purchase options which are
included in the Fund's Schedule of Investments and subsequently marked to market
to reflect the current value of the option. When a purchased option is
exercised, the cost of the security is adjusted by the amount of premium paid.
The risk associated with purchased options is limited to the premium paid.
I. ORGANIZATION EXPENSE:
Organization expenses are amortized on a straight line basis over a period of
sixty months from the commencement of operations. If any of the initial shares
are redeemed before the end of the amortization period, the proceeds of the
redemption will be reduced by the pro rata share of unamortized organization
expenses.
87
<PAGE>
PHOENIX-ZWEIG TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 (CONTINUED)
J. EXPENSES:
Expenses incurred by the Trust with respect to any two or more Funds are
allocated in proportion to the net assets of each Fund, except where allocation
of direct expense to each Fund or an alternative allocation method can be more
fairly made.
K. REPURCHASE AGREEMENTS:
A repurchase agreement is a transaction where a Fund acquires a security for
cash and obtains a simultaneous commitment from the seller to repurchase the
security at an agreed upon price and date. Each Fund, through its custodian,
takes possession of securities collateralizing the repurchase agreement. The
collateral is marked-to-market daily to ensure that the market value of the
underlying assets remains sufficient to protect the Fund in the event of default
by the seller. If the seller defaults and the value of the collateral declines,
or if the seller enters insolvency proceedings, realization of collateral may be
delayed or limited.
L. BORROWINGS
The Trust has entered into a Liquidity Line of Credit with The Bank of New
York for $100,000,000. The Trust has not had to use the Line of Credit since it
was established on July 21, 1997. If a Fund uses the Line of Credit, it will be
collateralized by that Fund's portfolio.
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
As compensation for its services to the Trust, the Adviser, Zweig/ Glaser
Advisers LLC, a wholly-owned subsidiary of Phoenix Investments Partners, LTD, is
entitled to a fee, based upon the following annual rates as a percentage of the
average daily net assets of each Fund:
<TABLE>
<S> <C> <C> <C>
Appreciation Fund.................. 1.00%
Foreign Equity Fund................ 1.00%
Government Cash Fund............... 0.50%
Government Fund.................... 0.60%
Growth & Income Fund............... 0.75%
Managed Assets..................... 1.00%
Strategy Fund...................... 0.75%
</TABLE>
The Adviser has agreed to reimburse the Foreign Equity Fund to the extent that
total expenses (excluding taxes, interest, brokerage commissions, 12b-1 fees,
and extraordinary expenses) exceed 1.80% of the average daily net assets for
Class A shares, 2.50% of the average daily net assets for Class B and Class C
shares and 1.50% of the average daily net assets for Class I shares through
April 30, 1999.
The Adviser has agreed to reimburse the Government Cash Fund to the extent
that total expenses (excluding taxes, interest, brokerage commissions, 12b-1
fees, and extraordinary expenses) exceed 0.65% of the average daily net assets
for Class A and Class C shares, 1.35% of the average daily net assets for
Class B shares, 0.35% of the average daily net assets for Class I shares and
0.41% of the average daily net assets for Class M shares through December 31,
1999.
PEPCO an indirect majority-owned subsidiary of Phoenix Home Life Mutual
Insurance Company ("PHL"), which serves as the national distributor of the
Trust's shares has advised the Trust that it retained net selling commissions of
$10,920 for Class A shares and deferred sales charges of $415 for Class A
shares, $773,168 for Class B shares and $35,877 for Class C shares for the year
ended December 31, 1999. In addition, each Fund pays PEPCO a distribution fee at
an annual rate of 0.30% for Class A shares and 1.00% for Class B shares applied
to the average daily net assets of each Fund. All Funds (other than Government
Fund and Government Cash Fund) pay PEPCO a distribution fee at an annual rate of
1.00% for Class C shares applied to the average daily net assets of each Fund.
The Government Cash Fund pays PEPCO a distribution fee at an annual rate of
0.30% for Class C shares applied to the average daily net assets of the Fund.
The Government Fund pays PEPCO a distribution fee at an annual rate of 0.75% for
Class C shares applied to the average daily net assets of the Fund. A separate
distribution plan for Class M shares of Government Cash Fund provides that
service organizations may be paid up to 0.30% of the average daily net assets of
Class M shares, shared equally between Government Cash Fund and the Adviser.
There is no distribution fee for Class I shares. The distributor has advised the
Trust that of the total amount expensed for the year ended December 31, 1999,
$7,769,881 was retained by the Distributor and $4,181,083 was paid out to
unaffiliated participants and $3,968 was paid to W.S. Griffith, an indirect
subsidiary of PHL.
For the year ended December 31, 1999, The Trust paid PXP Securities Corp, a
wholly owned subsidiary of Phoenix, brokerage commissions of $104,820 in
connection with portfolio transactions effected by it.
88
<PAGE>
PHOENIX-ZWEIG TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 (CONTINUED)
Effective October 7, 1999, PEPCO became Financial Agent of the Fund, and
receives a fee for financial reporting, tax services and oversight of subagent's
performance based upon the following annual rates as a percentage of the average
daily net assets of each Fund:
<TABLE>
<CAPTION>
1st $50 $50-200 $200+
Million Million Million
-------- -------- --------
<S> <C> <C> <C>
All funds except Government Cash
Fund........................... 0.07% 0.06% 0.01%
<CAPTION>
1st $100 $100-500 $500+
Million Million Million
-------- -------- --------
<S> <C> <C> <C>
Government Cash Fund............. 0.01% 0.04% 0.01%
</TABLE>
Prior to that date, The Bank of New York was the Financial Agent of the Fund and
was paid according to the same fee schedule.
Effective October 7, 1999, PFPC, Inc., a subagent to PEPCO, receives a fee
which ranges from 0.085% to 0.0125% of the average daily net asset values of
each Fund. Certain minimum fees and fee waivers may apply.
PEPCO serves as the Trust's Transfer Agent with State Street Bank and Trust
Company as sub-transfer agent. For the year ended December 31, 1999, transfer
agent fees were $2,376,846 of which PEPCO retained $286,552 which is net of fees
paid to State Street.
At December 31, 1999 PHL and its affiliates held shares of the Trust which
aggregated the following:
<TABLE>
<CAPTION>
Aggregate
Net Asset
Shares Value
---------- -----------
<S> <C> <C>
Government Cash Fund............... 55,496,927 $55,496,927
</TABLE>
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the year ended December 31, 1999
(excluding U.S. Government and agency securities, short-term securities, futures
contracts and forward currency contracts) aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
------------ --------------
<S> <C> <C>
Appreciation Fund.............. $207,628,403 $ 471,717,629
Foreign Equity Fund............ 2,387,897 4,356,404
Growth & Income Fund........... 36,837,242 59,590,486
Managed Assets................. 81,587,829 238,758,359
Strategy Fund.................. 598,109,261 1,027,965,536
</TABLE>
Purchases and sales of U.S. Government and agency securities during the year
ended December 31, 1999 aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
Government Fund.................. $ 45,384,537 $ 65,086,472
Managed Assets................... 127,859,507 182,716,383
</TABLE>
At December 31, 1999, the Growth & Income Fund had entered into futures
contracts as follows:
<TABLE>
<CAPTION>
Value of
Number Contracts Market Net
of When Value of Unrealized
Description Contracts Opened Contracts Appreciation
- ----------- --------- --------- --------- ------------
<S> <C> <C> <C> <C>
Standard & Poor's 500
Index 1 $362,375 $371,050 $8,675
</TABLE>
4. FORWARD CURRENCY CONTRACTS
As of December 31, 1999, Foreign Equity Fund had entered into the following
forward currency contracts which contractually obligate the Fund to deliver
currencies at specified dates:
<TABLE>
<CAPTION>
Net
Unrealized
Settlement Appreciation
Contracts to Deliver In Exchange For Date Value (Depreciation)
- -------------------- --------------- ---------- ----------- --------------
<S> <C> <C> <C> <C>
AUD (930,000 ) US$ (589,155) 3/15/00 $ (611,339) $(22,184)
DKK (1,200,00 ) US$ (164,485) 3/15/00 (163,147) 1,338
NOK (1,200,000 ) US$ (150,000) 3/15/00 (149,089) 911
JPY (120,000,000 ) US$ (1,166,748) 3/15/00 (1,188,884) (22,136)
SEK (2,000,000 ) US$ (237,530) 3/15/00 (236,273) 1,257
CHF (280,000 ) US$ (177,215) 3/15/00 (176,531) 684
NZD (300,000 ) US$ (153,270) 3/15/00 (156,539) (3,269)
EUR (2,000,000 ) US$ (2,039,800) 3/15/00 (2,025,952) 13,848
GBP (420,000 ) US$ (677,544) 3/15/00 (680,570) (3,026)
--------
$(32,577)
========
</TABLE>
89
<PAGE>
PHOENIX-ZWEIG TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 (CONTINUED)
As of December 31, 1999, Managed Assets had entered into the following forward
currency contracts which contractually obligate the Fund to deliver currencies
at specified dates:
<TABLE>
<CAPTION>
Net
Unrealized
Settlement Appreciation
Contracts to Deliver In Exchange For Date Value (Depreciation)
- -------------------- ---------------- ---------- ------------- --------------
<S> <C> <C> <C> <C>
AUD (15,300,000 ) US$ (9,692,550) 3/15/00 $ (10,057,518) $(364,968)
DKK (41,700,000 ) US$ (5,715,852) 3/15/00 (5,669,343) 46,509
JPY (2,820,000,000 ) US$ (27,418,571) 3/15/00 (27,938,759) (520,188)
SEK (90,000,000 ) US$ (10,688,836) 3/15/00 (10,632,265) 56,571
NZD (8,300,000 ) US$ (4,240,470) 3/15/00 (4,330,924) (90,454)
EUR (105,600,000 ) US$ (107,701,449) 3/15/00 (106,970,289) 731,160
GBP (20,800,000 ) US$ (33,554,562) 3/15/00 (33,704,406) (149,844)
---------
$(291,214)
=========
AUD=Australian Dollar
DKK=Danish Krone
NOK=Norwegian Krone
JPY=Japanese Yen
SEK=Swedish Krona
CHF=Swiss Franc
NZD=New Zealand Dollar
EUR=Euro Dollar
GBP=British Pound
US=U.S. Dollar
</TABLE>
5. CREDIT RISK
In countries with limited or developing markets, investments may present
greater risks than in more developed markets and the prices of such investments
may be volatile. The consequences of political, social or economic changes in
these markets may have disruptive effects on the market prices of these
investments and the income they generate, as well as a fund's ability to
repatriate such amounts.
6. OTHER
As of December 31, 1999, the Government Cash Fund had 1 shareholder who
individually owned more than 10% of shares outstanding which represents 16.6% of
total net assets. This shareholder is not affiliated with PHL or PXP. In
addition, affiliate holdings are presented in the table located within Note 2.
7. CAPITAL LOSS CARRYOVERS
The following Funds have capital loss carryovers which may be used to offset
future capital gains.
<TABLE>
<CAPTION>
Expiration Date Government Government
October 31, Cash Fund Fund
- ----------- ---------- ----------
<S> <C> <C>
2001................................. -- $7,227,155
2003................................. $106,250 1,010,121
2004................................. 306 --
2007................................. -- 334,701
-------- ----------
$106,556 $8,571,977
======== ==========
</TABLE>
8. RECLASS OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, each Fund has recorded several
reclassifications in the capital accounts. These reclassifications have no
impact on the net asset value of the Funds and are designed generally to present
undistributed income and realized gains on a tax basis which is considered to be
more informative to the shareholder. As of December 31, 1999, the Funds recorded
the following reclassifications to increase (decrease) the accounts listed
below:
<TABLE>
<CAPTION>
Capital paid
Undistributed Accumulated in on shares
net investment net realized of beneficial
income (loss) gain (loss) interest
-------------- ------------ -------------
<S> <C> <C> <C>
Appreciation Fund..... $ 686,072 $ (215,316) $ (470,756)
Foreign Equity Fund... 88,049 77,848 (165,897)
Government Fund....... (35,081) (2,942,798) 2,977,879
Growth & Income
Fund.................. (10,526) 9,843 683
Managed Assets........ 329,695 (3,534,414) 3,204,719
Strategy Fund......... 3,634,305 (3,639,800) 5,495
</TABLE>
90
<PAGE>
PHOENIX-ZWEIG TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 (CONTINUED)
TAX INFORMATION NOTICE (UNAUDITED)
For the fiscal year ended December 31, 1999, the following Funds distributed
long-term capital gains dividends as follows:
<TABLE>
<S> <C>
Appreciation Fund........................ $46,222,918
Foreign Equity Fund...................... 454,736
Growth & Income Fund..................... 1,090,831
Managed Assets........................... 38,791,012
Strategy Fund............................ 77,185,755
</TABLE>
For federal income tax purposes, the percentage of ordinary income dividends
paid which qualify for the dividends received deduction for corporate
shareholders are as follows:
<TABLE>
<S> <C>
Appreciation Fund........................ 12.25%
Growth and Income Fund................... 24.57
Managed Assets........................... 10.88
Strategy Fund............................ 10.16
</TABLE>
This report is not authorized for distribution to prospective investors in the
Phoenix-Zweig Trust unless preceded or accompanied by an effective prospectus
which includes information concerning the sales charge, the Fund's record and
other pertinent information.
91
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[LOGO]
To the Trustees and Shareholders
of the Phoenix-Zweig Trust
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments (except for bond ratings), and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
the Phoenix-Zweig Appreciation Fund, Phoenix-Zweig Foreign Equity Fund,
Phoenix-Zweig Government Cash Fund, Phoenix-Zweig Government Fund, Phoenix-Zweig
Growth & Income Fund, Phoenix-Zweig Managed Assets, and the Phoenix-Zweig
Strategy Fund (formerly known as Zweig Series Trust, constituting Zweig
Appreciation Fund, Zweig Foreign Equity Fund, Zweig Government Cash Fund, Zweig
Government Fund, Zweig Growth & Income Fund, Zweig Managed Assets Fund, and
Zweig Strategy Fund, respectively) (constituting the Phoenix-Zweig Trust,
hereafter referred to as the "Fund") at December 31, 1999, and the results of
each of their operations for the year then ended, the changes in each of their
net assets for each of the two years in the period then ended and the financial
highlights for each of the periods indicated, in conformity with accounting
principles generally accepted in the United States. These financial statements
and financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States, which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at
December 31, 1999 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
/s/ PricewaterhouseCoopers LLP
New York, New York
February 11, 2000
92
<PAGE>
PHOENIX-ZWEIG TRUST
900 Third Avenue, 31st Floor
New York, New York 10022
TRUSTEES
James Balog
Claire B. Benenson
S. Leland Dill
Eugene J. Glaser
Donald B. Romans
OFFICERS
Eugene J. Glaser, Chairman
Martin E. Zweig, President
Michael E. Haylon, Executive Vice President
John F. Sharry, Executive Vice President
Carlton B. Neel, Senior Vice President
Thomas N. Steenburg, Senior Vice President
Barry M. Mandinach, First Vice President
Sung Chung, Vice President
William R. Moyer, Executive Vice President
David O'Brien, Vice President
Beth Abraham, Assistant Vice President
Rhonda Lee Berzner, Assistant Vice President
Nancy G. Curtiss, Treasurer
Marc Baltuch, Secretary
INVESTMENT ADVISER
Zweig/Glaser Advisers LLC
900 Third Avenue, 31st Floor
New York, New York 10022-4728
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
The Bank of New York
One Wall Street
New York, New York 10286
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
HOW TO CONTACT US
<TABLE>
<S> <C>
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
</TABLE>
WWW.PHOENIXINVESTMENTS.COM
<PAGE>
PRSRT STD
U.S. Postage
PAID
Springfield, MA
Permit No. 444
PHOENIX EQUITY PLANNING CORPORATION
PO Box 2200
Enfield CT 06083-2200
[LOGO] PHOENIX
INVESTMENT PARTNERS
PXP 1329(2/00)
