AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON DECEMBER 15, 2000
REGISTRATION NOS. 2-93538
811-04116
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------
FORM N-1A
REGISTRATION STATEMENT
UNDER THE
SECURITIES ACT OF 1933
PRE-EFFECTIVE AMENDMENT NO.
POST-EFFECTIVE AMENDMENT NO. 52
AND/OR
REGISTRATION STATEMENT
UNDER THE
INVESTMENT COMPANY ACT OF 1940
AMENDMENT NO. 53
(CHECK APPROPRIATE BOX OR BOXES)
------------------
PHOENIX-ZWEIG TRUST
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
------------------
900 THIRD AVENUE, 31ST FLOOR, NEW YORK, NEW YORK 10022
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
C/O ZWEIG/GLASER SHAREHOLDER SERVICES
(800) 272-2700
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
------------------
PAMELA S. SINOFSKY
ASSISTANT VICE PRESIDENT AND ASSISTANT COUNSEL
PHOENIX INVESTMENT PARTNERS, LTD.
56 PROSPECT STREET
HARTFORD, CONNECTICUT 06115
(NAME AND ADDRESS OF AGENT FOR SERVICE)
------------------
It is proposed that this filing will become effective (check
appropriate box)
|X| immediately upon filing pursuant to paragraph (b)
[ ] on pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(i)
[ ] on pursuant to paragraph (a)(i)
[ ] 75 days after filing pursuant to paragraph (a)(ii)
[ ] on pursuant to paragraph (a)(ii) of Rule 485.
If appropriate, check the following box:
[ ] this post-effective amendment designates a new effective
date for a previously filed post-effective amendment.
================================================================================
<PAGE>
PHOENIX-ZWEIG TRUST
Cross Reference Sheet Pursuant to Rule 495(a)
This Registration Statement contains two prospectuses and two Statements of
Additional Information. These are identified as Version A and Version B of each.
PART A
INFORMATION REQUIRED IN PROSPECTUS
<TABLE>
<CAPTION>
ITEM NUMBER FORM N-1A, PART A PROSPECTUS CAPTION
----------------------------- ------------------
<S> <C> <C>
1. Front and Back Cover Pages............................... Cover Page, Back Cover Page
2. Risk/Return Summary: Investments, Risks, Performance..... Investment Risk and Return Summary
3. Risk/Return Summary: Fee Table........................... Fund Expenses
4. Investment Objectives, Principal Investment Strategies,
and Related Risks........................................ Investment Risk and Return Summary
5. Management's Discussion of Fund Performance.............. Performance Tables
6. Management, Organization, and Capital Structure.......... Management of the Fund
7. Shareholder Information.................................. Pricing of Fund Shares; Sales Charges; Your
Account; How to Buy Shares; How to Sell Shares;
Things to Know When Selling Shares; Account
Policies; Investor Services; Tax Status of Distributions
8. Distribution Arrangements................................ Sales Charges
9. Financial Highlights Information......................... Financial Highlights
</TABLE>
PART B
INFORMATION REQUIRED IN STATEMENT OF ADDITIONAL INFORMATION
<TABLE>
<CAPTION>
ITEM NUMBER FORM N-1A, PART B STATEMENT OF ADDITIONAL INFORMATION CAPTION
----------------------------- -------------------------------------------
<S> <C> <C>
10. Cover Page and Table of Contents......................... Cover Page, Table of Contents
11. Fund History............................................. The Fund
12. Description of the Fund and Its Investment Risks......... Investment Techniques and Risks; Investment
Restrictions
13. Management of the Fund................................... Management of the Trust
14. Control Persons and Principal Holders of Securities...... Management of the Trust
15. Investment Advisory and Other Services................... Services of the Adviser; The Distributor;
Distribution Plans; Other Information
16. Brokerage Allocation and Other Practices................. Portfolio Transactions and Brokerage
17. Capital Stock and Other Securities...................... Other Information
18. Purchase, Redemption, and Pricing of Shares.............. Net Asset Value; How to Buy Shares; Investor
Account Services; Redemption of Shares; Tax
Sheltered Retirement Plans
19. Taxation of the Fund..................................... Dividends, Distributions and Taxes
20. Underwriters............................................. The Distributor
21. Calculation of Performance Data.......................... Performance Information
22. Financial Statements..................................... Financial Statements
</TABLE>
PART C
INFORMATION REQUIRED TO BE INCLUDED IN PART C IS SET FORTH UNDER THE
APPROPRIATE ITEM, SO NUMBERED, IN PART C OF THIS REGISTRATION STATEMENT.
<PAGE>
Phoenix Investment Partners
Prospectus
December 15, 2000
-------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
Phoenix-Zweig Strategy Fund
Neither the Securities and Exchange
Commission nor any state securities
commission has approved or
disapproved of these securities or
determined if this prospectus is
truthful or complete. Any representation
to the contrary is a criminal offense.
This prospectus contains important
information that you should know
before investing in 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 Phoenix-Zweig
Strategy Fund. Please read it carefully
and retain it for future reference.
[logo] PHOENIX
INVESTMENT PARTNERS
<PAGE>
TABLE OF CONTENTS
--------------------------------------------------------------------------------
Phoenix-Zweig Trust
Phoenix-Zweig Appreciation Fund
Investment Risk and Return Summary.......................... 2
Fund Expenses............................................... 5
Phoenix-Zweig Foreign Equity Fund
Investment Risk and Return Summary.......................... 7
Fund Expenses............................................... 11
Phoenix-Zweig Government Cash Fund
Investment Risk and Return Summary.......................... 13
Fund Expenses............................................... 16
Phoenix-Zweig Government Fund
Investment Risk and Return Summary.......................... 18
Fund Expenses............................................... 21
Phoenix-Zweig Growth & Income Fund
Investment Risk and Return Summary.......................... 23
Fund Expenses............................................... 26
Phoenix-Zweig Managed Assets
Investment Risk and Return Summary.......................... 28
Fund Expenses............................................... 33
Phoenix-Zweig Strategy Fund
Investment Risk and Return Summary.......................... 35
Fund Expenses............................................... 38
Additional Investment Techniques............................... 40
Management of the Funds........................................ 43
Pricing of Fund Shares......................................... 45
Sales Charges.................................................. 46
Your Account................................................... 49
How to Buy Shares.............................................. 50
How to Sell Shares............................................. 50
Things You Should Know When Selling Shares..................... 51
Account Policies............................................... 53
Investor Services.............................................. 54
Tax Status of Distributions.................................... 55
Financial Highlights........................................... 56
Additional Information......................................... 71
[triangle] Phoenix-
Zweig
Trust
<PAGE>
PHOENIX-ZWEIG TRUST
--------------------------------------------------------------------------------
THE TRUST
There are seven Phoenix-Zweig mutual funds. Together they make up the
Phoenix-Zweig Trust (the "Trust").
THE FUNDS
The seven funds that make up the Trust are: Phoenix-Zweig Appreciation Fund (the
"Appreciation Fund"), Phoenix-Zweig Foreign Equity Fund (the "Foreign Equity
Fund"), Phoenix-Zweig Government Cash Fund (the "Government Cash Fund"),
Phoenix-Zweig Government Fund (the "Government Fund"), Phoenix-Zweig Growth &
Income Fund (the "Growth & Income Fund"), Phoenix-Zweig Managed Assets ("Managed
Assets Fund") and Phoenix-Zweig Strategy Fund (the "Strategy Fund"), each a
"fund" and together, the "funds." Each fund has its own investment policies
designed to help you achieve your goals.
Phoenix-Zweig Trust 1
<PAGE>
PHOENIX-ZWEIG APPRECIATION FUND
INVESTMENT RISK AND RETURN SUMMARY
--------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Phoenix-Zweig Appreciation Fund has an investment objective of increasing the
value of your investment over the long term (capital appreciation) consistent
with preserving capital and reducing portfolio exposure to market risk. There is
no guarantee that the fund will achieve its objective.
PRINCIPAL INVESTMENT STRATEGIES
> The adviser manages the fund's investment program, including security
selection, and maintains the general operation of the fund. The
subadviser determines asset allocations for the fund based on
fundamental and technical indicators that measure the risk and reward
characteristics of the stock and bond markets. The three main groups of
indicators are:
o Monetary indicators, including the trend of interest rates, Federal
Reserve policy, commodity prices, and economic activity;
o Sentiment indicators, including mutual funds' cash-to-assets ratio,
foreign buying and selling, and volume of initial and secondary
public offerings; and
o Momentum indicators, including new highs and lows,
up-volume-to-down-volume, and divergences between large- and
small-company stocks.
As the indicators point to increasing levels of market risk, the fund
may gradually reduce its market exposure. The fund may not be fully
invested throughout bull and bear markets, but, instead, some profits
may be left "on the table" as a strategy to limit losses. As a result,
the fund may not keep pace with all-equity benchmarks or fully-invested
stock funds during bull markets. While the fund attempts to limit
losses, it is not possible to eliminate risk entirely.
> Generally, emphasis is placed primarily on the subadviser's tactical
asset allocation strategy; security selection is secondary.
> The fund invests primarily in common stocks of companies with smaller
capitalizations (generally less than $1 billion) with both value or
growth characteristics.
> Up to 700 small company stocks are selected for fund investment
primarily from the 2,000 stocks immediately following the 1,000 largest
stocks based on market capitalization or trading volume. Generally,
these 2,000 stocks have market capitalizations ranging from $262
million to $1.5 billion or an average trading volume of approximately
$3.3 million.
2 Phoenix-Zweig Appreciation Fund
<PAGE>
> Stocks are selected using quantitative analysis of growth indicators,
such as earnings, sales and cash flow; value indicators, such as price
to earnings; and miscellaneous indicators, such as price momentum.
> The fund's investment strategy may result in a higher portfolio
turnover rate for the fund. High portfolio turnover rates may increase
costs to the fund, may negatively affect fund performance, and may
increase capital gain distributions, resulting in greater tax liability
to you.
Temporary Defensive Strategy: When declines in the indices occur, or when
attempting to reduce fluctuations in net asset value, the adviser may reduce
market exposure by gradually selling securities and buying money market
instruments or by selling stock index or Treasury futures. Money market
instruments may include commercial paper, short-term corporate obligations, bank
deposits (including time deposits with a maturity of less than one year) and
other financial institution obligations. When this happens, the fund may not
achieve its objective.
Please refer to "Additional Investment Techniques" for other investment
techniques of the fund.
RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES
If you invest in this fund, you risk that you may lose your investment.
GENERAL
The value of the fund's investments that supports your share value can decrease
as well as increase. If between the time you purchase shares and the time you
sell shares the value of the fund's investments decreases, you will lose money.
Investment values can decrease for a number of reasons. Conditions affecting the
overall economy, specific industries or companies in which the fund invests can
be worse than expected and investments may fail to perform as the adviser
expects. As a result, the value of your shares may decrease.
GROWTH STOCKS
Because growth stocks typically make little or no dividend payments to
shareholders, investment return is based on a stock's capital appreciation,
making return more dependent on market increases and decreases. Growth stocks
are therefore more volatile than non-growth stocks to market changes, tending to
rise faster when markets rise and drop more sharply when markets fall.
SMALL CAPITALIZATIONS
Companies with small capitalizations are often companies with a limited
operating history or companies in industries that have recently emerged due to
cultural, economic, regulatory or technological developments. Such developments
can have a significant impact or negative effect on small capitalization
companies and their stock performance and can make investment
Phoenix-Zweig Appreciation Fund 3
<PAGE>
returns highly volatile. Product lines are often less diversified and subject to
competitive threats. Smaller capitalization stocks are subject to varying
patterns of trading volume and may, at times, be difficult to sell.
PERFORMANCE TABLES
The bar chart and table below provide some indication of the risks of investing
in the Phoenix-Zweig Appreciation Fund. The bar chart shows changes in the
fund's Class A Shares performance from year to year over the life of the
fund.(1) The table shows how the fund's average annual returns compare to those
of a broad-based securities market index. The fund's past performance is not
necessarily an indication of how the fund will perform in the future.
[GRAPHIC OMITTED]
CALENDAR YEAR ANNUAL RETURN (%)
1992 9.5
1993 14.7
1994 -1.8
1995 24.0
1996 15.4
1997 23.8
1998 -1.0
1999 -1.8
(1) The fund's average annual returns in the chart above do not reflect the
deduction of any sales charges. The returns would have been less than those
shown if sales charges were deducted. During the period shown in the chart
above, the highest return for a quarter was 15.02% (quarter ending December 31,
1998) and the lowest return for a quarter was -20.56% (quarter ending September
30, 1998). Year-to-date performance through September 30, 2000 was 2.42%.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
Life of the Fund(2)
Average Annual Total Returns One Five -----------------------------------------
(for the periods ending 12/31/99)(1) Year Years Class A Class B Class C Class I
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Class A Shares(3) -7.44% 10.18% 9.60% -- -- --
-----------------------------------------------------------------------------------------------------------------
Class B Shares -5.40% -- -- 7.01% -- --
-----------------------------------------------------------------------------------------------------------------
Class C Shares -2.49% 10.73% -- -- 8.48% --
-----------------------------------------------------------------------------------------------------------------
Class I Shares -1.45% -- -- -- -- 8.44%
-----------------------------------------------------------------------------------------------------------------
Russell 2000 Index(4) 21.26% 16.69% 15.28% 13.49% 13.67% 14.82%
-----------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The fund's average annual returns in the table above reflect the deduction
of the maximum sales charge for an investment in the fund's Class A Shares and a
full redemption in the fund's Class B and Class C Shares.
(2) Class A Shares since October 7, 1991, Class B shares since April 8, 1996,
Class C Shares since February 4, 1992 and Class I Shares since November 1, 1996.
(3) Class A Share performance has been restated to reflect the deduction of the
current maximum sales charge.
(4) 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.
4 Phoenix-Zweig Appreciation Fund
<PAGE>
FUND EXPENSES
--------------------------------------------------------------------------------
This table illustrates all fees and expenses that you may pay if you buy and
hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS I
SHARES SHARES SHARES SHARES
------ ------ ------ ------
<S> <C> <C> <C> <C>
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR
INVESTMENT)
Maximum Sales Charge (load) Imposed on Purchases (as a
percentage of offering price) 5.75% None None None
Maximum Deferred Sales Charge (load) (as a percentage of None(a) 5%(b) 1.25%(c) None
the lesser of the value redeemed or the amount invested)
Maximum Sales Charge (load) Imposed on Reinvested None None None None
Dividends
Redemption Fee None None None None
Exchange Fee None None None None
--------------------------------------------------------
CLASS A CLASS B CLASS C CLASS I
SHARES SHARES SHARES SHARES
------ ------ ------ ------
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE
DEDUCTED FROM FUND ASSETS)
Management Fees 1.00% 1.00% 1.00% 1.00%
Distribution and Service (12b-1) Fees(d) 0.30% 1.00% 1.00% None
Other Expenses 0.28% 0.28% 0.28% 0.28%
---- ---- ---- ----
TOTAL ANNUAL FUND OPERATING EXPENSES 1.58% 2.28% 2.28% 1.28%
==== ==== ==== ====
-------------------------
</TABLE>
(a) A 1% CDSC is imposed on redemptions within 12 months of purchases of $1
million or more originally purchased without an initial sales charge as
described under "Class A Shares--Reduced Initial Sales Charges" in the Statement
of Additional Information.
(b) The maximum deferred sales charge is imposed on Class B Shares redeemed
during the first year; thereafter, it decreases 1% annually to 3% during the
third and fourth years and to 0% after the sixth year.
(c) The deferred sales charge is imposed on Class C Shares redeemed during the
first year only.
(d) Distribution and Service Fees represent an asset-based sales charge that,
for a long-term shareholder, may be higher than the maximum front-end sales
charge permitted by the National Association of Securities Dealers, Inc.
("NASD").
EXAMPLE
This example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and that the
fund's operating expenses remain the same. In the case of Class B Shares, it is
assumed that your shares are converted to Class A after seven years. Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
Phoenix-Zweig Appreciation Fund 5
<PAGE>
--------------------------------------------------------------------------------
CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
Class A $726 $1,045 $1,386 $2,345
--------------------------------------------------------------------------------
Class B $631 $1,012 $1,320 $2,358
--------------------------------------------------------------------------------
Class C $356 $712 $1,220 $2,615
--------------------------------------------------------------------------------
Class I $130 $406 $702 $1,545
--------------------------------------------------------------------------------
You would pay the following expenses if you did not redeem your shares:
--------------------------------------------------------------------------------
CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
Class B $231 $712 $1,220 $2,358
--------------------------------------------------------------------------------
Class C $231 $712 $1,220 $2,615
--------------------------------------------------------------------------------
6 Phoenix-Zweig Appreciation Fund
<PAGE>
PHOENIX-ZWEIG FOREIGN EQUITY FUND
INVESTMENT RISK AND RETURN SUMMARY
--------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Phoenix-Zweig Foreign Equity Fund has an investment objective of increasing the
value of your investment over the long term (capital appreciation) consistent
with preserving capital and reducing portfolio exposure to market risk. There is
no guarantee that the fund will achieve its objective.
PRINCIPAL INVESTMENT STRATEGIES
> The adviser manages the fund's investment program, including security
selection, and maintains the general operation of the fund. The
subadviser determines asset allocations for the fund based on
fundamental and technical indicators that measure the risk and reward
characteristics of the stock and bond markets. The three main groups of
indicators are:
o Monetary indicators, including the trend of interest rates, Federal
Reserve policy, commodity prices, and economic activity;
o Sentiment indicators, including mutual funds' cash-to-assets ratio,
foreign buying and selling, and volume of initial and secondary
public offerings; and
o Momentum indicators, including new highs and lows,
up-volume-to-down-volume, and divergences between large- and
small-company stocks.
As the indicators point to increasing levels of market risk, the fund
may gradually reduce its market exposure. The fund may not be fully
invested throughout bull and bear markets, but, instead, some profits
may be left "on the table" as a strategy to limit losses. As a result,
the fund may not keep pace with all-equity benchmarks or fully-invested
stock funds during bull markets. While the fund attempts to limit
losses, it is not possible to eliminate risk entirely.
> Generally, emphasis is placed primarily on the subadviser's tactical
asset allocation strategy; security selection is secondary.
> Under normal circumstances, the fund invests at least 65% of its assets
in foreign equity securities, primarily common stocks of all
capitalizations with both value or growth characteristics.
> Securities are currently selected from approximately 22 countries,
although the subadviser may alter asset and/or geographic allocations
when market capitalizations or economic growth indicators change.
Phoenix-Zweig Foreign Equity Fund 7
<PAGE>
> Stocks are selected using quantitative analysis of growth indicators,
such as earnings, sales and cash flow; value indicators, such as price
to earnings; and miscellaneous indicators, such as price momentum.
Within a country, the adviser attempts to selects stocks that, in the
aggregate, are expected to perform similarly to the major stock market
indices of a particular country.
> The fund's investment strategy may result in a higher portfolio
turnover rate for the fund. High portfolio turnover rates may increase
costs to the fund, may negatively affect fund performance, and may
increase capital gain distributions, resulting in greater tax liability
to you.
Temporary Defensive Strategy: When declines in the indices occur, or when
attempting to reduce fluctuations in net asset value, the adviser may reduce
market exposure by gradually selling securities and buying money market
instruments or by selling stock index or Treasury futures. Money market
instruments may include commercial paper, short-term corporate obligations, bank
deposits (including time deposits with a maturity of less than one year) and
other financial institution obligations. In addition, the percentage of
investments in foreign equity securities may fall below 65% if the adviser
believes this to be an appropriate response to the strategic indicators. When
this happens, the fund may not achieve its investment objective.
Please refer to "Additional Investment Techniques" for other investment
techniques of the fund.
RISKS RELATING TO PRINCIPAL INVESTMENT STRATEGIES
If you invest in this fund, you risk that you may lose your investment.
GENERAL
The value of the fund's investments that supports your share value can decrease
as well as increase. If between the time you purchase shares and the time you
sell shares the value of the fund's investments decreases, you will lose money.
Investment values can decrease for a number of reasons. Conditions affecting the
overall economy, specific industries or companies in which the fund invests can
be worse than expected and investments may fail to perform as the adviser
expects. As a result, the value of your shares may decrease.
FOREIGN INVESTING
Investing in securities of non-U.S. companies involves special risks and
considerations not typically associated with investing in U.S. companies, such
as:
o less publicly available information about foreign countries;
o political and economic instability within countries;
o differences in financial reporting standards and transaction
settlement systems;
8 Phoenix-Zweig Foreign Equity Fund
<PAGE>
o the possibility of expropriation or confiscatory taxation; and
o changes in investment or exchange regulations.
Some investments may be made in currencies other than U.S. dollars that will
fluctuate in value as a result of changes in the currency exchange rates.
Exchange rate fluctuations can cause the value of your shares to decrease or
increase. Generally, when the value of the U.S. dollar increases against the
foreign currency in which an investment is denominated, the security tends to
decrease in value which, in turn, may cause the value of your shares to
decrease.
GROWTH STOCKS
Because growth stocks typically make little or no dividend payments to
shareholders, investment return is based on a stock's capital appreciation,
making return more dependent on market increases and decreases. Growth stocks
are therefore more volatile than non-growth stocks to market changes, tending to
rise faster when markets rise and drop more sharply when markets fall.
SMALL CAPITALIZATIONS
Companies with small capitalizations are often companies with a limited
operating history or companies in industries that have recently emerged due to
cultural, economic, regulatory or technological developments. Such developments
can have a significant impact or negative effect on small capitalization
companies and their stock performance and can make investment returns highly
volatile. Product lines are often less diversified and subject to competitive
threats. Smaller capitalization stocks are subject to varying patterns of
trading volume and may, at times, be difficult to sell.
Phoenix-Zweig Foreign Equity Fund 9
<PAGE>
PERFORMANCE TABLES
The bar chart and table below provide some indication of the risks of investing
in the Phoenix-Zweig Foreign Equity Fund. The bar chart shows changes in the
fund's Class A Shares performance from year to year over the life of the
fund.(1) The table shows how the fund's average annual returns compare to those
of a broad-based securities market index. The fund's past performance is not
necessarily an indication of how the fund will perform in the future.
[GRAPHIC OMITTED]
CALENDAR YEAR ANNUAL RETURN (%)
1998 9.1
1999 23.0
(1) The fund's average annual returns in the chart above do not reflect the
deduction of any sales charges. The returns would have been less than that shown
if sales charges were deducted. During the period shown in the chart above, the
highest return for a quarter was 13.71% (quarter ending December 31, 1999) and
the lowest return for a quarter was -13.27% (quarter ending September 30, 1998).
Year-to-date performance through September 30, 2000 was -7.20%.
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Average Annual Total Returns One Life of the Fund(2)
(for the periods ending 12/31/99)(1) Year
----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Class A Shares(3) 15.91% 12.39%
----------------------------------------------------------------------------------------------------------------
Class B Shares 18.06% 13.56%
----------------------------------------------------------------------------------------------------------------
Class C Shares 21.85% 14.65%
----------------------------------------------------------------------------------------------------------------
Morgan Stanley World (excluding U.S.) Index(4) 28.27% 23.05%(5)
----------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The fund's average annual returns in the table above reflect the deduction
of the maximum sales charge for an investment in the fund's Class A Shares and a
full redemption in the fund's Class B and Class C Shares.
(2) Class A, Class B and Class C Shares since November 21, 1997.
(3) Class A Share performance has been restated to reflect the deduction of the
current maximum sales charge.
(4) 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.
(5) Index performance since November 28, 1997.
10 Phoenix-Zweig Foreign Equity Fund
<PAGE>
FUND EXPENSES
--------------------------------------------------------------------------------
This table illustrates all fees and expenses that you may pay if you buy and
hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
SHARES SHARES SHARES
------ ------ ------
<S> <C> <C> <C>
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR
INVESTMENT)
Maximum Sales Charge (load) Imposed on Purchases (as a
percentage of offering price) 5.75% None None
Maximum Deferred Sales Charge (load) (as a percentage of the None(a) 5%(b) 1.25%(c)
lesser of the value redeemed or the amount invested)
Maximum Sales Charge (load) Imposed on Reinvested Dividends None None None
Redemption Fee None None None
Exchange Fee None None None
----------------------------------------------
CLASS A CLASS B CLASS C
SHARES SHARES SHARES
------ ------ ------
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM
FUND ASSETS)
Management Fees 1.00% 1.00% 1.00%
Distribution and Service (12b-1) Fees(d) 0.30% 1.00% 1.00%
Other Expenses 1.86% 1.86% 1.86%
---- ---- ----
TOTAL ANNUAL FUND OPERATING EXPENSES 3.16% 3.86% 3.86%
==== ==== ====
-------------------------
</TABLE>
(a) A 1% CDSC is imposed on redemptions within 12 months of purchases of $1
million or more originally purchased without an initial sales charge as
described under "Class A Shares--Reduced Initial Sales Charges" in the Statement
of Additional Information.
(b) The maximum deferred sales charge is imposed on Class B Shares redeemed
during the first year; thereafter, it decreases 1% annually to 3% during the
third and fourth years and to 0% after the sixth year.
(c) The deferred sales charge is imposed on Class C Shares redeemed during the
first year only.
(d) Distribution and Service Fees represent an asset-based sales charge that,
for a long-term shareholder, may be higher than the maximum front-end sales
charge permitted by the National Association of Securities Dealers, Inc.
("NASD").
EXAMPLE
This example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and that the
fund's operating expenses remain the same. In the case of Class B Shares, it is
assumed that your shares are converted to Class A after seven years. Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
Phoenix-Zweig Foreign Equity Fund 11
<PAGE>
--------------------------------------------------------------------------------
CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
Class A $876 $1,493 $2,134 $3,842
--------------------------------------------------------------------------------
Class B $788 $1,478 $2,086 $3,867
--------------------------------------------------------------------------------
Class C $513 $1,178 $1,986 $4,087
--------------------------------------------------------------------------------
You would pay the following expenses if you did not redeem your shares:
--------------------------------------------------------------------------------
CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
Class B $388 $1,178 $1,986 $3,867
--------------------------------------------------------------------------------
Class C $388 $1,178 $1,986 $4,087
--------------------------------------------------------------------------------
12 Phoenix-Zweig Foreign Equity Fund
<PAGE>
PHOENIX-ZWEIG GOVERNMENT CASH FUND
INVESTMENT RISK AND RETURN SUMMARY
--------------------------------------------------------------------------------
THIS PROSPECTUS DESCRIBES CLASS A, CLASS B, CLASS C AND CLASS I OF PHOENIX-ZWEIG
GOVERNMENT CASH FUND. Refer to the Phoenix-Zweig Trust's Phoenix-Zweig
Government Cash Fund Class M Prospectus for information on Class M Shares.
INVESTMENT OBJECTIVE
Phoenix-Zweig Government Cash Fund has an investment objective of seeking high
current income consistent with maintaining liquidity and preserving capital.
There is no guarantee that the fund will achieve its objective.
PRINCIPAL INVESTMENT STRATEGIES
> The fund seeks to maintain a stable $1.00 per share price.
> The fund invests exclusively in the following instruments:
o short-term securities issued or guaranteed as to payment of
principal and interest by the U.S. Government, its agencies or
instrumentalities; and
o repurchase agreements collateralized by such securities.
U.S. Government securities are considered to be of the highest credit
quality, yet the primary consideration in choosing among these
securities is managing risk related to changes in interest rate levels.
> Money market instruments selected for investment have remaining
maturities of less than 397 days and have an average weighted portfolio
maturity of not greater than 90 days.
RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES
GENERAL
An investment in the fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the fund.
Neither the fund nor the adviser can assure you that a particular yield, return
or level of income will be achieved. Changing market conditions, the relatively
short maturities of fund investments and substantial redemptions may all
negatively affect the fund.
Phoenix-Zweig Government Cash Fund 13
<PAGE>
CREDIT RISK
Credit risk pertains to the issuer's ability to make scheduled interest or
principal payments. A security's short-term investment rating may decline,
increasing the chances that the issuer will be unable to make such payments when
due. This may reduce the fund's stream of income and decrease the fund's yield.
INTEREST RATE RISK
Interest rate trends can have an affect on the value of your shares. If interest
rates rise, the value of debt securities generally will fall.
REPURCHASE AGREEMENTS
The fund may invest in repurchase agreements with commercial banks, brokers and
dealers considered by the adviser to be creditworthy. Default or insolvency of
the other party presents risk to the fund.
U.S. GOVERNMENT SECURITIES
Obligations issued or guaranteed by the U.S. Government, its agencies,
authorities and instrumentalities only guarantee or insure principal and
interest will be timely paid to holders of the securities. The entities do not
guarantee that the value of fund shares will remain at $1.00 or that the fund
will realize a particular yield.
14 Phoenix-Zweig Government Cash Fund
<PAGE>
PERFORMANCE TABLES
The bar chart and table below provide some indication of the risks of investing
in the Phoenix-Zweig Government Cash Fund. The bar chart shows changes in the
fund's Class A Shares performance from year to year over the life of the
fund.(1) The table shows the fund's average annual returns for one year, five
years and over the life of the fund. The fund's past performance is not
necessarily an indication of how the fund will perform in the future.
[GRAPHIC OMMITTED]
CALENDAR YEAR ANNUAL RETURN (%)
1995 5.1
1996 4.8
1997 5.0
1998 4.9
1999 4.5
(1) During the period shown in the chart above, the highest return for a quarter
was 1.28% (quarter ending June 30, 1995) and the lowest return for a quarter was
1.05% (quarter ending June 30, 1999). Year-to-date performance through September
30, 2000 was 4.16%.
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Average Annual Total Returns One Year Five Years Life of the Fund(2)
(for the periods ending 12/31/99) (1)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Class A Shares 4.52% 4.86% 4.74%
----------------------------------------------------------------------------------------------------------------
Class B Shares -0.20% N/A 3.36%
----------------------------------------------------------------------------------------------------------------
Class C Shares 4.52% 4.86% 4.74%
----------------------------------------------------------------------------------------------------------------
Class I Shares 4.83% N/A 5.11%
----------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The fund's average annual returns in the table above reflect a full
redemption in the fund's Class B and Class C Shares.
(2) Class A and Class C Shares since May 1, 1994, Class B Shares since April 8,
1996, and Class I Shares since November 1, 1996. Class M Shares are covered in a
separate prospectus.
The fund's 7-day yield on December 31, 1999 was 5.06% for Class A Shares, 4.36%
for Class B Shares, 5.06% for Class C Shares and 5.36% for Class I Shares.
Phoenix-Zweig Government Cash Fund 15
<PAGE>
FUND EXPENSES
--------------------------------------------------------------------------------
This table illustrates all fees and expenses that you may pay if you buy and
hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS I
SHARES SHARES SHARES SHARES
------ ------ ------ ------
<S> <C> <C> <C> <C>
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR
INVESTMENT)
Maximum Sales Charge (load) Imposed on Purchases (as a
percentage of offering price) None None None None
Maximum Deferred Sales Charge (load) (as a percentage of None 5%(b) 1.25%(c) None
the lesser of the value redeemed or the amount invested)
Maximum Sales Charge (load) Imposed on Reinvested None None None None
Dividends
Redemption Fee None None None None
Exchange Fee None None None None
---------------------------------------------------------
CLASS A CLASS B CLASS C CLASS I
SHARES SHARES SHARES SHARES
------ ------ ------ ------
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE
DEDUCTED FROM FUND ASSETS)
Management Fees 0.50% 0.50% 0.50% 0.50%
Distribution and Service (12b-1) Fees(d) 0.30% 1.00% 0.30% None
Other Expenses 0.29% 1.01% 0.55% 0.17%
---- ---- ---- ----
TOTAL ANNUAL FUND OPERATING EXPENSES(a) 1.09% 2.51% 1.35% 0.67%
==== ==== ==== ====
--------------------------
</TABLE>
(a) The adviser has voluntarily undertaken to limit expenses (exclusive of
taxes, interest, brokerage commissions, 12b-1 fees and extraordinary expenses)
until April 30, 2001 to 0.35% of the fund's average net assets. Total Annual
Fund Operating Expenses after expense reimbursement (if applicable) are 0.65%
for Class A Shares, 1.35% for Class B Shares, 0.65% for Class C Shares, and
0.35% for Class I Shares.
(b) The maximum deferred sales charge is imposed on Class B Shares redeemed
during the first year; thereafter, it decreases 1% annually to 3% during the
third and fourth years and to 0% after the sixth year.
(c) The deferred sales charge is imposed on Class C Shares redeemed during the
first year only.
(d) Distribution and Service Fees represent an asset-based sales charge that,
for a long-term shareholder, may be higher than the maximum front-end sales
charge permitted by the National Association of Securities Dealers, Inc.
("NASD").
EXAMPLE
This example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and that the
fund's operating expenses remain the same. In the case of Class B Shares, it is
assumed that your shares are converted to Class A after seven years. Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
16 Phoenix-Zweig Government Cash Fund
<PAGE>
--------------------------------------------------------------------------------
CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
Class A $111 $347 $601 $1,329
--------------------------------------------------------------------------------
Class B $654 $1,082 $1,435 $2,329
--------------------------------------------------------------------------------
Class C $262 $428 $739 $1,624
--------------------------------------------------------------------------------
Class I $68 $214 $373 $835
--------------------------------------------------------------------------------
You would pay the following expenses if you did not redeem your shares:
--------------------------------------------------------------------------------
CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
Class B $254 $782 $1,335 $2,329
--------------------------------------------------------------------------------
Class C $137 $428 $739 $1,624
--------------------------------------------------------------------------------
Note: Your actual expenses may be lower than those shown in the tables above
since the expense levels used to calculate the figures shown do not include the
reimbursement of expenses over certain levels by the fund's manager. Refer to
the section "Management of the Funds" for information about expense
reimbursement.
Phoenix-Zweig Government Cash Fund 17
<PAGE>
PHOENIX-ZWEIG GOVERNMENT FUND
INVESTMENT RISK AND RETURN SUMMARY
--------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Phoenix-Zweig Government Fund has an investment objective to achieve a high
total return from current income and capital appreciation consistent with
preserving capital over the long term. There is no guarantee that the fund will
achieve its objective.
PRINCIPAL INVESTMENT STRATEGIES
> Under normal circumstances, the fund invests at least 65% of its total
assets in U.S. Government securities of all maturities and debt
securities issued, collateralized or guaranteed by the U.S. Treasury or
a U.S. Government agency or instrumentality. U.S. Government securities
are considered to be of the highest credit quality.
> The primary consideration in selecting U.S. Government securities is
managing risk related to changes in interest rate levels. One key
factor used by the adviser to measure risk is duration. Duration
measures the interest rate sensitivity of a fixed income security by
assessing and weighting the present value of the security's payment
pattern. Generally, the longer the maturity, the greater the duration
and therefore the greater effect interest rate changes have on the
price of the security.
> The fund alters its mix of short-, medium- and long-term holdings based
on market outlook to attempt to minimize interest rate risk.
> The fund's investment strategy may result in a higher portfolio
turnover rate for the fund. High portfolio turnover rates may increase
costs to the fund, may negatively affect fund performance, and may
increase capital gain distributions, resulting in greater tax liability
to you.
Please refer to "Additional Investment Techniques" for other investment
techniques of the fund.
RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES
If you invest in this fund, you risk that you may lose your investment.
GENERAL
The value of your shares and the level of income you receive are subject to
risks associated with the types of securities selected for fund investment.
Neither the fund nor the adviser can assure you that a particular level of
income will consistently be achieved or that the value of the fund's investments
that supports your share value will increase. If the value of fund investments
decreases, your share value will decrease.
18 Phoenix-Zweig Government Fund
<PAGE>
CREDIT RISK
Credit risk pertains to the issuer's ability to make scheduled interest or
principal payments. Generally, the lower a security's credit rating, the greater
the chance that the issuer will be unable to make such payments when due. Credit
risk is determined at the date of investment. If after the date of purchase the
rating declines, the fund is not obligated to sell the security.
INTEREST RATE RISK
Interest rate trends can have an affect on the value of your shares. If interest
rates rise, the value of debt securities generally will fall. Because the fund
may hold securities with longer maturities, the net asset value of the fund may
experience greater price fluctuations in response to changes in interest rates
than funds that hold only securities with short-term maturities. Prices of
longer-term securities are affected more by interest rate changes than prices of
shorter-term securities.
LONG-TERM MATURITIES
Fixed-income securities with longer maturities may be subject to greater price
fluctuations due to interest rate, tax law and general market changes.
U.S. GOVERNMENT OBLIGATIONS
Obligations issued or guaranteed by the U.S. Government, its agencies,
authorities and instrumentalities only guarantee principal and interest will be
timely paid to holders of the securities. The entities do not guarantee that the
value of fund shares will increase. In addition, not all U.S. Government
securities are backed by the full faith and credit of the United States.
Phoenix-Zweig Government Fund 19
<PAGE>
PERFORMANCE TABLES
The bar chart and table below provide some indication of the risks of investing
in the Phoenix-Zweig Government Fund. The bar chart shows changes in the fund's
Class A Shares performance from year to year over a 10-year period.(1) The table
shows how the fund's average annual returns compare to those of a broad-based
securities market index. The fund's past performance is not necessarily an
indication of how the fund will perform in the future.
[GRAPHIC OMITTED]
CALENDAR YEAR ANNUAL RETURN (%)
1990 6.1
1991 14.4
1992 4.5
1993 10.4
1994 -2.8
1995 13.8
1996 -0.4
1997 8.4
1998 8.9
1999 -2.6
(1) The fund's average annual returns in the chart above do not reflect the
deduction of any sales charges. The returns would have been less than those
shown if sales charges were deducted. During the 10-year period shown in the
chart above, the highest return for a quarter was 6.60% (quarter ending
September 30, 1998) and the lowest return for a quarter was -3.87% (quarter
ending March 31, 1996). Year-to-date performance through September 30, 2000 was
4.61%.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
Life of the Fund(2)
Average Annual Total Returns One Five Ten ------------------------------------
(for the periods ending 12/31/99)(1) Year Years Years Class A Class B Class C Class I
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Class A Shares(3) -7.21% 4.43% 5.38% -- -- -- --
---------------------------------------------------------------------------------------------------------------
Class B Shares -6.95% -- -- -- 3.64% -- --
---------------------------------------------------------------------------------------------------------------
Class C Shares -3.09% 4.95% -- -- -- 4.63% --
---------------------------------------------------------------------------------------------------------------
Class I Shares -2.31% -- -- -- -- -- 4.80%
---------------------------------------------------------------------------------------------------------------
Lehman Brothers -2.24% 7.43% 7.48% -- 6.16%(5) 6.68%(6) 4.61%(7)
Government Bond Index(4)
---------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The fund's average annual returns in the table above reflect the deduction
of the maximum sales charge for an investment in the fund's Class A Shares and a
full redemption in the fund's Class B and Class C Shares.
(2) Class B Shares since April 8, 1996, Class C Shares since February 4, 1992,
and Class I Shares since July 14, 1997.
(3) Phoenix/Zweig Advisers LLC assumed responsibility for managing the fund on
September 1, 1989.
(4) 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.
(5) Index performance since April 30, 1996.
(6) Index performance since February 29, 1992.
(7) Index performance since July 31, 1997.
20 Phoenix-Zweig Government Fund
<PAGE>
FUND EXPENSES
--------------------------------------------------------------------------------
This table illustrates all fees and expenses that you may pay if you buy and
hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS I
SHARES SHARES SHARES SHARES
------ ------ ------ ------
<S> <C> <C> <C> <C>
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR
INVESTMENT)
Maximum Sales Charge (load) Imposed on Purchases (as a
percentage of offering price) 4.75% None None None
Maximum Deferred Sales Charge (load) (as a percentage of None(a) 5%(b) 1.25%(c) None
the lesser of the value redeemed or the amount invested)
Maximum Sales Charge (load) Imposed on Reinvested None
Dividends None None None
Redemption Fee None None None None
Exchange Fee None None None None
---------------------------------------------------------
CLASS A CLASS B CLASS C CLASS I
SHARES SHARES SHARES SHARES
------ ------ ------ ------
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE
DEDUCTED FROM FUND ASSETS)
Management Fees 0.60% 0.60% 0.60% 0.60%
Distribution and Service (12b-1) Fees(d) 0.30% 1.00% 0.75% None
Other Expenses 0.45% 0.45% 0.45% 0.45%
---- ---- ---- ----
TOTAL ANNUAL FUND OPERATING EXPENSES 1.35% 2.05% 1.80% 1.05%
==== ==== ==== ====
-------------------------
</TABLE>
(a) A 1% CDSC is imposed on redemptions within 12 months of purchases of $1
million or more originally purchased without an initial sales charge as
described under "Class A Shares--Reduced Initial Sales Charges" in the Statement
of Additional Information.
(b) The maximum deferred sales charge is imposed on Class B Shares redeemed
during the first year; thereafter, it decreases 1% annually to 3% during the
third and fourth years and to 0% after the sixth year.
(c) The deferred sales charge is imposed on Class C Shares redeemed during the
first year only.
(d) Distribution and Service Fees represent an asset-based sales charge that,
for a long-term shareholder, may be higher than the maximum front-end sales
charge permitted by the National Association of Securities Dealers, Inc.
("NASD").
EXAMPLE
This example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and that the
fund's operating expenses remain the same. In the case of Class B Shares, it is
assumed that your shares are converted to Class A after seven years. Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
Phoenix-Zweig Government Fund 21
<PAGE>
--------------------------------------------------------------------------------
CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
Class A $606 $882 $1,179 $2,022
--------------------------------------------------------------------------------
Class B $608 $943 $1,203 $2,116
--------------------------------------------------------------------------------
Class C $308 $566 $975 $2,116
--------------------------------------------------------------------------------
Class I $107 $334 $579 $1,283
--------------------------------------------------------------------------------
You would pay the following expenses if you did not redeem your shares:
--------------------------------------------------------------------------------
CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
Class B $208 $643 $1,103 $2,116
--------------------------------------------------------------------------------
Class C $183 $566 $975 $2,116
--------------------------------------------------------------------------------
22 Phoenix-Zweig Government Fund
<PAGE>
PHOENIX-ZWEIG GROWTH & INCOME FUND
INVESTMENT RISK AND RETURN SUMMARY
--------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Phoenix-Zweig Growth & Income Fund has an investment objective of increasing the
value of your investment over the long term (capital appreciation) and, to a
lesser extent, providing income (dividends) consistent with preserving capital
and reducing portfolio exposure to market risk. There is no guarantee that the
fund will achieve its objectives.
PRINCIPAL INVESTMENT STRATEGIES
> The adviser manages the fund's investment program, including security
selection, and maintains the general operation of the fund. The
subadviser determines asset allocations for the fund based on
fundamental and technical indicators that measure the risk and reward
characteristics of the stock and bond markets. The three main groups of
indicators are:
o Monetary indicators, including the trend of interest rates, Federal
Reserve policy, commodity prices, and economic activity;
o Sentiment indicators, including mutual funds' cash-to-assets ratio,
foreign buying and selling, and volume of initial and secondary
public offerings; and
o Momentum indicators, including new highs and lows,
up-volume-to-down-volume, and divergences between large- and
small-company stocks.
As the indicators point to increasing levels of market risk, the fund
may gradually reduce its market exposure. The fund may not be fully
invested throughout bull and bear markets, but, instead, some profits
may be left "on the table" as a strategy to limit losses. As a result,
the fund may not keep pace with all-equity benchmarks or fully-invested
stock funds during bull markets. While the fund attempts to limit
losses, it is not possible to eliminate risk entirely.
> Generally, emphasis is placed primarily on the subadviser's tactical
asset allocation strategy; security selection is secondary.
> The fund invests in up to 300 stocks divided approximately equally
between those chosen for their:
o Growth characteristics, which include positive earnings momentum and
above-average earnings; and
o Income characteristics, which include above-average dividend yields
and favorable dividend growth.
Phoenix-Zweig Growth & Income Fund 23
<PAGE>
Stocks selected for fund investment may be of any capitalization.
> Stocks are selected using quantitative analysis of growth indicators,
such as earnings, sales and cash flow; value indicators, such as price
to earnings; and miscellaneous indicators, such as price momentum.
> The fund's investment strategy may result in a higher portfolio
turnover rate for the fund. High portfolio turnover rates may increase
costs to the fund, may negatively affect fund performance, and may
increase capital gain distributions, resulting in greater tax liability
to you.
Temporary Defensive Strategy: When declines in the indices occur, or when
attempting to reduce fluctuations in net asset value, the adviser may reduce
market exposure by gradually selling securities and buying money market
instruments or by selling stock index or Treasury futures. Money market
instruments may include commercial paper, short-term corporate obligations, bank
deposits (including time deposits with a maturity of less than one year) and
other financial institution obligations. When this happens, the fund may not
achieve its investment objective.
Please refer to "Additional Investment Techniques" for other investment
techniques of the fund.
RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES
If you invest in this fund, you risk that you may lose your investment.
GENERAL
The value of the fund's investments that supports your share value can decrease
as well as increase. If between the time you purchase shares and the time you
sell shares the value of the fund's investments decreases, you will lose money.
Investment values can decrease for a number of reasons. Conditions affecting the
overall economy, specific industries or companies in which the fund invests can
be worse than expected and investments may fail to perform as the adviser
expects. As a result, the value of your shares may decrease.
GROWTH STOCKS
Because growth stocks typically make little or no dividend payments to
shareholders, investment return is based on a stock's capital appreciation,
making return more dependent on market increases and decreases. Growth stocks
are therefore more volatile than non-growth stocks to market changes, tending to
rise faster when markets rise and drop more sharply when markets fall.
SMALL CAPITALIZATIONS
Companies with small capitalizations are often companies with a limited
operating history or companies in industries that have recently emerged due to
cultural, economic, regulatory or technological developments. Such developments
can have a significant impact or negative
24 Phoenix-Zweig Growth & Income Fund
<PAGE>
effect on small capitalization companies and their stock performance and can
make investment returns highly volatile. Product lines are often less
diversified and subject to competitive threats. Smaller capitalization stocks
are subject to varying patterns of trading volume and may, at times, be
difficult to sell.
PERFORMANCE TABLES
The bar chart and table below provide some indication of the risks of investing
in the Phoenix-Zweig Growth & Income Fund. The bar chart shows changes in the
fund's Class A Shares performance from year to year over the life of the
fund.(1) The table shows how the fund's average annual returns compare to those
of a broad-based securities market index. The fund's past performance is not
necessarily an indication of how the fund will perform in the future.
[GRAPHIC OMITTED]
CALENDAR YEAR ANNUAL RETURN (%)
1997 23.1
1998 -1.6
1999 1.1
(1) The fund's average annual returns in the chart above do not reflect the
deduction of any sales charges. The returns would have been less than those
shown if sales charges were deducted. During the period shown in the chart
above, the highest return for a quarter was 13.47% (quarter ending December 31,
1998) and the lowest return for a quarter was -18.54% (quarter ending September
30, 1998). Year-to-date performance through September 30, 2000 was 9.43%.
--------------------------------------------------------------------------------
Average Annual Total Returns One Year Life of the Fund(2)
(for the periods ending 12/31/99)(1)
--------------------------------------------------------------------------------
Class A Shares(3) -4.72% 4.90%
--------------------------------------------------------------------------------
Class B Shares -3.21% 5.33%
--------------------------------------------------------------------------------
Class C Shares 0.45% 6.19%
--------------------------------------------------------------------------------
Class I Shares 1.46% 7.25%
--------------------------------------------------------------------------------
S&P 500 Composite Stock Price Index(4) 21.14% 25.96%
--------------------------------------------------------------------------------
(1) The fund's average annual returns in the table above reflect the deduction
of the maximum sales charge for an investment in the fund's Class A Shares and a
full redemption in the fund's Class B and Class C Shares.
(2) Class A, Class B, Class C and Class I Shares since November 26, 1996.
(3) Class A Share performance has been restated to reflect the deduction of the
current maximum sales charge.
(4) The S&P 500 Composite Stock Price Index is an unmanaged, commonly used
measure of stock market total return performance. The Index's performance does
not reflect sales charges.
Phoenix-Zweig Growth & Income Fund 25
<PAGE>
FUND EXPENSES
--------------------------------------------------------------------------------
This table illustrates all fees and expenses that you may pay if you buy and
hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS I
SHARES SHARES SHARES SHARES
------ ------ ------ ------
<S> <C> <C> <C> <C>
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR
INVESTMENT)
Maximum Sales Charge (load) Imposed on Purchases (as a
percentage of offering price) 5.75% None None None
Maximum Deferred Sales Charge (load) (as a percentage of None(a) 5%(b) 1.25%(c) None
the lesser of the value redeemed or the amount invested)
Maximum Sales Charge (load) Imposed on Reinvested None
Dividends None None None
Redemption Fee None None None None
Exchange Fee None None None None
---------------------------------------------------------
CLASS A CLASS B CLASS C CLASS I
SHARES SHARES SHARES SHARES
------ ------ ------ ------
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE
DEDUCTED FROM FUND ASSETS)
Management Fees 0.75% 0.75% 0.75% 0.75%
Distribution and Service (12b-1) Fees(d) 0.30% 1.00% 1.00% None
Other Expenses 0.75% 0.75% 0.75% 0.75%
---- ---- ---- ----
TOTAL ANNUAL FUND OPERATING EXPENSES 1.80% 2.50% 2.50% 1.50%
==== ==== ==== ====
-------------------------
</TABLE>
(a) A 1% CDSC is imposed on redemptions within 12 months of purchases of $1
million or more originally purchased without an initial sales charge as
described under "Class A Shares--Reduced Initial Sales Charges" in the Statement
of Additional Information.
(b) The maximum deferred sales charge is imposed on Class B Shares redeemed
during the first year; thereafter, it decreases 1% annually to 3% during the
third and fourth years and to 0% after the sixth year.
(c) The deferred sales charge is imposed on Class C Shares redeemed during the
first year only.
(d) Distribution and Service Fees represent an asset-based sales charge that,
for a long-term shareholder, may be higher than the maximum front-end sales
charge permitted by the National Association of Securities Dealers, Inc.
("NASD").
EXAMPLE
This example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and that the
fund's operating expenses remain the same. In the case of Class B Shares, it is
assumed that your shares are converted to Class A after seven years. Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
26 Phoenix-Zweig Growth & Income Fund
<PAGE>
--------------------------------------------------------------------------------
CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
Class A $747 $1,109 $1,494 $2,569
--------------------------------------------------------------------------------
Class B $653 $1,079 $1,431 $2,584
--------------------------------------------------------------------------------
Class C $378 $779 $1,331 $2,836
--------------------------------------------------------------------------------
Class I $153 $474 $818 $1,791
--------------------------------------------------------------------------------
You would pay the following expenses if you did not redeem your shares:
--------------------------------------------------------------------------------
CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
Class B $253 $779 $1,331 $2,584
--------------------------------------------------------------------------------
Class C $253 $779 $1,331 $2,836
--------------------------------------------------------------------------------
Phoenix-Zweig Growth & Income Fund 27
<PAGE>
PHOENIX-ZWEIG MANAGED ASSETS
INVESTMENT RISK AND RETURN SUMMARY
--------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Phoenix-Zweig Managed Assets has an investment objective of increasing your
investment from capital appreciation, dividends and interest consistent with
preserving capital and reducing portfolio exposure to market risk. There is no
guarantee that the fund will achieve its objective. The fund's objective may be
changed without shareholder approval.
PRINCIPAL INVESTMENT STRATEGIES
> The adviser manages the fund's investment program, including security
selection, and maintains the general operation of the fund. The
subadviser determines asset allocations for the fund based on
fundamental and technical indicators that measure the risk and reward
characteristics of the stock and bond markets. The three main groups of
indicators are:
o Monetary indicators, including the trend of interest rates, Federal
Reserve policy, commodity prices, and economic activity;
o Sentiment indicators, including mutual funds' cash-to-assets ratio,
foreign buying and selling, and volume of initial and secondary
public offerings; and
o Momentum indicators, including new highs and lows,
up-volume-to-down-volume, and divergences between large- and
small-company stocks.
As the indicators point to increasing levels of market risk, the fund
may gradually reduce its market exposure. The fund may not be fully
invested throughout bull and bear markets, but, instead, some profits
may be left "on the table" as a strategy to limit losses. As a result,
the fund may not keep pace with all-equity benchmarks or fully-invested
stock funds during bull markets. While the fund attempts to limit
losses, it is not possible to eliminate risk entirely.
> Generally, emphasis is placed primarily on the subadviser's tactical
asset allocation strategy; security selection is secondary.
> The fund allocates its assets among domestic and foreign:
o stocks,
o bonds,
o short-term instruments,
28 Phoenix-Zweig Managed Assets
<PAGE>
o currencies, and
o currency-related investments.
> Stocks are selected using quantitative analysis of growth indicators
such as earnings, sales and cash flow; value indicators such as price
to earnings and miscellaneous indicators such as price momentum. Stocks
maybe of any capitalization and may be either foreign or U.S.
Generally, up to 200 U.S. stocks are selected from among 750 stocks
that the adviser believes to be comparable in market capitalization and
liquidity to stocks in the Standard & Poor's 500 Composite Stock Price
Index (S&P 500).
As of September 30, 2000 the capitalization range for the S&P 500 was
approximately $146 million to $571 billion. The adviser attempts to
select foreign stocks that, in the aggregate, are expected to perform
similarly to the major stock market indices of a particular country.
> The fund may invest in foreign and domestic bonds of any maturity which
are rated at the time of investment "A" or higher by Moody's Investors
Service, Inc. or Standard & Poor's Corporation, or if unrated, are
judged to be of comparable quality by the adviser. The primary
consideration in selecting bonds is managing risk related to changes in
interest rate levels. One key factor used by the adviser to measure
risk is duration. Duration measures the interest rate sensitivity of a
fixed income security by assessing and weighting the present value of
the security's payment pattern. Generally, the longer the maturity, the
greater the duration and therefore the greater effect interest rate
changes have on the price of the security. The fund also alters its mix
of short-, medium- and long-term holdings based on market outlook to
attempt to minimize interest rate risk. The fund may continue to hold
securities whose credit quality falls below investment grade.
> Forward currency exchange contracts, options and futures related to
foreign currencies, and securities indexed to foreign currencies may be
included in the fund's portfolio to take advantage of currency
fluctuations. Currency exchange contracts are agreements to exchange
one currency for another at a set rate on a future date. They may be
used to lock in an exchange rate for purchases of securities
denominated in foreign currencies.
> The fund may invest in foreign securities that are not publicly traded
in the United States. Since foreign countries may offer potentially
more growth than the U.S. as new markets or industries open, the fund
may attempt to cash in on such growth.
> The fund's investment strategy may result in a higher portfolio
turnover rate for the fund. High portfolio turnover rates may increase
costs to the fund, may negatively affect fund performance, and may
increase capital gain distributions, resulting in greater tax liability
to you.
Temporary Defensive Strategy: When declines in the indices occur, or when
attempting to reduce fluctuations in net asset value, the adviser may reduce
market exposure by gradually selling securities and buying money market
instruments or by selling stock index or Treasury futures.
Phoenix-Zweig Managed Assets 29
<PAGE>
Money market instruments may include commercial paper, short-term corporate
obligations, bank deposits (including time deposits with a maturity of less than
one year) and other financial institution obligations. When this happens, the
fund may not achieve its investment objective.
Please refer to "Additional Investment Techniques" for other investment
techniques of the fund.
RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES
If you invest in this fund, you risk that you may lose your investment.
GENERAL
The value of the fund's investments that supports your share value can decrease
as well as increase. If between the time you purchase shares and the time you
sell shares the value of the fund's investments decreases, you will lose money.
Investment values can decrease for a number of reasons. Conditions affecting the
overall economy, specific industries or companies in which the fund invests can
be worse than expected and investments may fail to perform as the adviser
expects. As a result, the value of your shares may decrease. Likewise, if
interest rates rise, generally the value of fixed income investments will fall,
which will also result in the decrease of share values.
In addition, if the adviser misjudges the return potential of securities, or the
ability of issuers to make scheduled principal and interest payments, the fund's
returns may be lower than prevailing returns and the fund's income available for
distribution may be less than other funds of this type.
CREDIT RISK
Credit risk pertains to the issuer's ability to make scheduled interest or
principal payments. Generally, the lower a security's credit rating, the greater
the chance that the issuer will be unable to make such payments when due. Credit
risk is determined at the date of investment. If after the date of purchase the
rating declines, the fund is not obligated to sell the security.
FOREIGN INVESTING
Investing in securities of non-U.S. companies involves special risks and
considerations not typically associated with investing in U.S. companies, such
as:
o less publicly available information about foreign countries;
o political and economic instability within countries;
o differences in financial reporting standards and transaction
settlement systems;
o the possibility of expropriation or confiscatory taxation; and
o changes in investment or exchange regulations.
30 Phoenix-Zweig Managed Assets
<PAGE>
Some investments may be made in currencies other than U.S. dollars that will
fluctuate in value as a result of changes in the currency exchange rates.
Exchange rate fluctuations can cause the value of your shares to decrease or
increase. Generally, when the value of the U.S. dollar increases against the
foreign currency in which an investment is denominated, the security tends to
decrease in value which, in turn, may cause the value of your shares to
decrease.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS AND FUTURES
Currency exchange contracts involve the risk that currency movements will be
inaccurately predicted, in which case the fund's return would be adversely
affected. In addition, some futures and forward exchange currency contracts are
customized financial contracts between two parties which subject them to the
additional risk that the counterparty will not meet its obligations. They also
may be less liquid and more difficult to value than standardized contracts
traded on a regulated exchange.
GROWTH STOCKS
Because growth stocks typically make little or no dividend payments to
shareholders, investment return is based on a stock's capital appreciation,
making return more dependent on market increases and decreases. Growth stocks
are therefore more volatile than non-growth stocks to market changes, tending to
rise faster when markets rise and drop more sharply when markets fall.
INTEREST RATE RISK
Interest rate trends can have an affect on the value of your shares. If interest
rates rise, the value of debt securities generally will fall. Because the fund
may hold securities with longer maturities, the net asset value of the fund may
experience greater price fluctuations in response to changes in interest rates
than funds that hold only securities with short-term maturities. Prices of
longer-term securities are affected more by interest rate changes than prices of
shorter-term securities.
LONG-TERM MATURITIES
Fixed-income securities with longer maturities may be subject to greater price
fluctuations due to interest rate, tax law and general market changes.
SMALL CAPITALIZATIONS
Companies with small capitalizations are often companies with a limited
operating history or companies in industries that have recently emerged due to
cultural, economic, regulatory or technological developments. Such developments
can have a significant impact or negative effect on small capitalization
companies and their stock performance and can make investment returns highly
volatile. Product lines are often less diversified and subject to competitive
threats. Smaller capitalization stocks are subject to varying patterns of
trading volume and may, at times, be difficult to sell.
Phoenix-Zweig Managed Assets 31
<PAGE>
PERFORMANCE TABLES
The bar chart and table below provide some indication of the risks of investing
in Phoenix-Zweig Managed Assets. The bar chart shows changes in the fund's Class
A Shares performance from year to year over the life of the fund.(1) The table
shows how the fund's average annual returns compare to those of a broad-based
securities market index. The fund's past performance is not necessarily an
indication of how the fund will perform in the future.
[GRAPHIC OMITTED]
CALENDAR YEAR ANNUAL RETURN (%)
1994 -2.9
1995 16.3
1996 9.8
1997 15.5
1998 14.9
1999 8.8
1) The fund's average annual returns in the chart above do not
reflect the deduction of any sales charges. The returns would have been less
than those shown if sales charges were deducted. During the period shown in the
chart above, the highest return for a quarter was 9.59% (quarter ending March
31, 1998) and the lowest return for a quarter was -4.17% (quarter ending
September 30, 1998). Year-to-date performance through September 30, 2000 was
0.98%.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
Life of the Fund(2)
Average Annual Total Returns One Five ---------------------------------------
(for the periods ending 12/31/99)(1) Year Years Class A Class B Class C Class I
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class A Shares(3) 2.55% 11.67% 9.65% -- -- --
------------------------------------------------------------------------------------------------------------------
Class B Shares 4.06% -- -- 11.71% -- --
------------------------------------------------------------------------------------------------------------------
Class C Shares 8.01% 12.19% -- -- 9.81% --
------------------------------------------------------------------------------------------------------------------
Class I Shares 9.08% -- -- -- -- 13.94%
------------------------------------------------------------------------------------------------------------------
MSCI World Index(4) 25.34% 20.25% 18.43% 19.83% 18.43% 20.75%
------------------------------------------------------------------------------------------------------------------
Salomon World Government Bond 1.32% 9.81% 7.78% 8.49% 7.78% 7.26%
Index-U.S. Dollar Currency Hedged(5)
------------------------------------------------------------------------------------------------------------------
Balanced Benchmark(6) 14.26% 11.90% 11.63% 11.21% 11.63% 14.17%(7)
------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The fund's average annual returns in the table above reflect the deduction
of the maximum sales charge for an investment in the fund's Class A Shares and a
full redemption in the fund's Class B and Class C Shares.
(2) Class A and Class C Shares since February 8, 1993, Class B Shares since
April 8, 1996, and Class I Shares from November 1, 1996.
(3) Class A Share performance has been restated to reflect the deduction of the
current maximum sales charge.
(4) Morgan Stanley Capital International World Index is a market capitalization
weighted index composed of companies representative of the market structure of
21 developed market countries in North America, Europe, and the Asia/Pacific
region. The Index is calculated in U.S. dollars with dividends reinvested.
(5) Salomon World Government Bond Index- U.S. Dollar Currency Hedged is a market
capitalization weighted index consisting of the government bond markets of 18
developed nations. The Index is hedged into U.S. dollars to eliminate the impact
of currency exchange rate fluctuations.
(6) 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.
(7) Benchmark performance since November 30, 1996.
32 Phoenix-Zweig Managed Assets
<PAGE>
FUND EXPENSES
--------------------------------------------------------------------------------
This table illustrates all fees and expenses that you may pay if you buy and
hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS I
SHARES SHARES SHARES SHARES
------ ------ ------ ------
<S> <C> <C> <C> <C>
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR
INVESTMENT)
Maximum Sales Charge (load) Imposed on Purchases (as a
percentage of offering price) 5.75% None None None
Maximum Deferred Sales Charge (load) (as a percentage of None(a) 5%(b) 1.25%(c) None
the lesser of the value redeemed or the amount invested)
Maximum Sales Charge (load) Imposed on Reinvested None
Dividends None None None
Redemption Fee None None None None
Exchange Fee None None None None
---------------------------------------------------------
CLASS A CLASS B CLASS C CLASS I
SHARES SHARES SHARES SHARES
------ ------ ------ ------
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE
DEDUCTED FROM FUND ASSETS)
Management Fees 1.00% 1.00% 1.00% 1.00%
Distribution and Service (12b-1) Fees(d) 0.30% 1.00% 1.00% None
Other Expenses 0.21% 0.21% 0.21% 0.21%
---- ---- ---- ----
TOTAL ANNUAL FUND OPERATING EXPENSES 1.51% 2.21% 2.21% 1.21%
==== ==== ==== ====
-------------------------
</TABLE>
(a) A 1% CDSC is imposed on redemptions within 12 months of purchases of $1
million or more originally purchased without an initial sales charge as
described under "Class A Shares--Reduced Initial Sales Charges" in the Statement
of Additional Information.
(b) The maximum deferred sales charge is imposed on Class B Shares redeemed
during the first year; thereafter, it decreases 1% annually to 3% during the
third and fourth years and to 0% after the sixth year.
(c) The deferred sales charge is imposed on Class C Shares redeemed during the
first year only.
(d) Distribution and Service Fees represent an asset-based sales charge that,
for a long-term shareholder, may be higher than the maximum front-end sales
charge permitted by the National Association of Securities Dealers, Inc.
("NASD").
EXAMPLE
This example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and that the
fund's operating expenses remain the same. In the case of Class B Shares, it is
assumed that your shares are converted to Class A after seven years. Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
Phoenix-Zweig Managed Assets 33
<PAGE>
--------------------------------------------------------------------------------
CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
Class A $720 $1,025 $1,351 $2,273
--------------------------------------------------------------------------------
Class B $624 $991 $1,285 $2,285
--------------------------------------------------------------------------------
Class C $349 $691 $1,185 $2,544
--------------------------------------------------------------------------------
Class I $123 $384 $665 $1,466
--------------------------------------------------------------------------------
You would pay the following expenses if you did not redeem your shares:
--------------------------------------------------------------------------------
CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
Class B $224 $691 $1,185 $2,285
--------------------------------------------------------------------------------
Class C $224 $691 $1,185 $2,544
--------------------------------------------------------------------------------
34 Phoenix-Zweig Managed Assets
<PAGE>
PHOENIX-ZWEIG STRATEGY FUND
INVESTMENT RISK AND RETURN SUMMARY
--------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Phoenix-Zweig Strategy Fund has an investment objective of increasing the value
of your investment over the long term (capital appreciation) consistent with
preserving capital and reducing portfolio exposure to market risk. There is no
guarantee that the fund will achieve its objective.
PRINCIPAL INVESTMENT STRATEGIES
> The adviser manages the fund's investment program, including security
selection, and maintains the general operation of the fund. The
subadviser determines asset allocations for the fund based on
fundamental and technical indicators that measure the risk and reward
characteristics of the stock and bond markets. The three main groups of
indicators are:
o Monetary indicators, including the trend of interest rates, Federal
Reserve policy, commodity prices, and economic activity;
o Sentiment indicators, including mutual funds' cash-to-assets ratio,
foreign buying and selling, and volume of initial and secondary
public offerings; and
o Momentum indicators, including new highs and lows,
up-volume-to-down-volume, and divergences between large- and
small-company stocks.
As the indicators point to increasing levels of market risk, the fund
may gradually reduce its market exposure. The fund may not be fully
invested throughout bull and bear markets, but, instead, some profits
may be left "on the table" as a strategy to limit losses. As a result,
the fund may not keep pace with all-equity benchmarks or fully-invested
stock funds during bull markets. While the fund attempts to limit
losses, it is not possible to eliminate risk entirely.
> Generally, emphasis is placed primarily on the subadviser's tactical
asset allocation strategy; security selection is secondary.
> The fund invests primarily in common stocks of companies with large
capitalizations (generally over $1 billion) with both value or growth
characteristics.
> Stocks are selected using quantitative analysis of growth indicators,
such as earnings, sales and cash flow; value indicators, such as price
to earnings; and miscellaneous indicators, such as price momentum.
Phoenix-Zweig Strategy Fund 35
<PAGE>
> Generally, up to 300 stocks are selected from the 1,000 most liquid
stocks that the adviser considers to be comparable to the stocks
included in the S&P 500.
> The fund's investment strategy may result in a higher portfolio
turnover rate for the fund. High portfolio turnover rates may increase
costs to the fund, may negatively affect fund performance, and may
increase capital gain distributions, resulting in greater tax liability
to you.
Temporary Defensive Strategy: When declines in the indices occur, or when
attempting to reduce fluctuations in net asset value, the adviser may reduce
market exposure by gradually selling securities and buying money market
instruments or by selling stock index or Treasury futures. Money market
instruments may include commercial paper, short-term corporate obligations, bank
deposits (including time deposits with a maturity of less than one year) and
other financial institution obligations. When this happens, the fund may not
achieve its investment objective.
Please refer to "Additional Investment Techniques" for other investment
techniques of the fund.
RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES
If you invest in this fund, you risk that you may lose your investment.
GENERAL
The value of the fund's investments that supports your share value can decrease
as well as increase. If between the time you purchase shares and the time you
sell shares the value of the fund's investments decreases, you will lose money.
Investment values can decrease for a number of reasons. Conditions affecting the
overall economy, specific industries or companies in which the fund invests can
be worse than expected and investments may fail to perform as the adviser
expects. As a result, the value of your shares may decrease.
GROWTH STOCKS
Because growth stocks typically make little or no dividend payments to
shareholders, investment return is based on a stock's capital appreciation,
making return more dependent on market increases and decreases. Growth stocks
are therefore more volatile than non-growth stocks to market changes, tending to
rise faster when markets rise and drop more sharply when markets fall.
36 Phoenix-Zweig Strategy Fund
<PAGE>
PERFORMANCE TABLES
The bar chart and table below provide some indication of the risks of investing
in the Phoenix-Zweig Strategy Fund. The bar chart shows changes in the fund's
Class A Shares performance from year to year over a 10-year period.(1) The table
shows how the fund's average annual returns compare to those of a broad-based
securities market index. The fund's past performance is not necessarily an
indication of how the fund will perform in the future.
[GRAPHIC OMITTED]
CALENDAR YEAR ANNUAL RETURN (%)
1990 -2.2
1991 23.4
1992 7.6
1993 15.0
1994 1.1
1995 25.1
1996 13.0
1997 18.1
1998 -1.9
1999 2.6
(1) The fund's average annual returns in the chart above do not reflect the
deduction of any sales charges. The returns would have been less than those
shown if sales charges were deducted. During the 10-year period shown in the
chart above, the highest return for a quarter was 13.13% (quarter ending
December 31, 1998) and the lowest return for a quarter was -19.92% (quarter
ending September 30, 1998). Year-to-date performance through September 30, 2000
was 1.56%.
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
Life of the Fund(2)
Average Annual Total Returns One Five Ten ---------------------------------------
(for the periods ending 12/31/99)(1) Year Years Years Class A Class B Class C Class I
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Class A Shares(3) -3.27% 9.64% 9.12% -- -- -- --
-------------------------------------------------------------------------------------------------------------------
Class B Shares -1.13% -- -- -- 5.79% -- --
-------------------------------------------------------------------------------------------------------------------
Class C Shares -1.94% 10.17% -- -- -- 8.67% --
-------------------------------------------------------------------------------------------------------------------
Class I Shares -2.96% -- -- -- -- -- 7.80%
-------------------------------------------------------------------------------------------------------------------
S&P 500 Composite 21.14% 28.66% 18.25% -- 26.92% 20.25% 28.26%
Stock Price Index(4)
-------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The fund's average annual returns in the table above reflect the deduction
of the maximum sales charge for an investment in the fund's Class A Shares and a
full redemption in the fund's Class B and Class C Shares.
(2) Class B Shares since April 8, 1996, Class C Shares since February 4, 1992,
and Class I Shares since November 1, 1996.
(3) Class A Share performance has been restated to reflect the deduction of the
current maximum sales charge.
(4) The S&P 500 Composite Stock Price Index is an unmanaged, commonly used
measure of stock market total return performance. The Index's performance does
not reflect sales charges.
Phoenix-Zweig Strategy Fund 37
<PAGE>
FUND EXPENSES
--------------------------------------------------------------------------------
This table illustrates all fees and expenses that you may pay if you buy and
hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS I
SHARES SHARES SHARES SHARES
------ ------ ------ ------
<S> <C> <C> <C> <C>
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR
INVESTMENT)
Maximum Sales Charge (load) Imposed on Purchases (as a
percentage of offering price) 5.75% None None None
Maximum Deferred Sales Charge (load) (as a percentage of None(a) 5%(b) 1.25%(c) None
the lesser of the value redeemed or the amount invested)
Maximum Sales Charge (load) Imposed on Reinvested None
Dividends None None None
Redemption Fee None None None None
Exchange Fee None None None None
---------------------------------------------------------
CLASS A CLASS B CLASS C CLASS I
SHARES SHARES SHARES SHARES
------ ------ ------ ------
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE
DEDUCTED FROM FUND ASSETS)
Management Fees 0.75% 0.75% 0.75% 0.75%
Distribution and Service (12b-1) Fees(d) 0.30% 1.00% 1.00% None
Other Expenses 0.23% 0.23% 0.23% 0.23%
---- ---- ---- ----
TOTAL ANNUAL FUND OPERATING EXPENSES 1.28% 1.98% 1.98% 0.98%
==== ==== ==== ====
-------------------------
</TABLE>
(a) A 1% CDSC is imposed on redemptions within 12 months of purchases of $1
million or more originally purchased without an initial sales charge as
described under "Class A Shares--Reduced Initial Sales Charges" in the Statement
of Additional Information.
(b) The maximum deferred sales charge is imposed on Class B Shares redeemed
during the first year; thereafter, it decreases 1% annually to 3% during the
third and fourth years and to 0% after the sixth year.
(c) The deferred sales charge is imposed on Class C Shares redeemed during the
first year only.
(d) Distribution and Service Fees represent an asset-based sales charge that,
for a long-term shareholder, may be higher than the maximum front-end sales
charge permitted by the National Association of Securities Dealers, Inc.
("NASD").
EXAMPLE
This example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and that the
fund's operating expenses remain the same. In the case of Class B Shares, it is
assumed that your shares are converted to Class A after seven years. Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
38 Phoenix-Zweig Strategy Fund
<PAGE>
--------------------------------------------------------------------------------
CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
Class A $698 $958 $1,237 $2,031
--------------------------------------------------------------------------------
Class B $601 $921 $1,168 $2,041
--------------------------------------------------------------------------------
Class C $326 $621 $1,068 $2,306
--------------------------------------------------------------------------------
Class I $100 $312 $542 $1,201
--------------------------------------------------------------------------------
You would pay the following expenses if you did not redeem your shares:
--------------------------------------------------------------------------------
CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
Class B $201 $621 $1,068 $2,041
--------------------------------------------------------------------------------
Class C $201 $621 $1,068 $2,306
--------------------------------------------------------------------------------
Phoenix-Zweig Strategy Fund 39
<PAGE>
ADDITIONAL INVESTMENT TECHNIQUES
--------------------------------------------------------------------------------
ADDITIONAL INVESTMENT TECHNIQUES
In addition to the Principal Investment Strategies and Risks, the Phoenix-Zweig
Appreciation Fund ("Appreciation Fund"), Phoenix-Zweig Foreign Equity Fund
("Foreign Fund"), Phoenix-Zweig Government Cash Fund ("Cash Fund"),
Phoenix-Zweig Government Fund ("Government Fund"), Phoenix-Zweig Growth & Income
Fund ("Growth & Income Fund"), Phoenix-Zweig Managed Assets ("Managed Assets
Fund") and Phoenix-Zweig Strategy Fund ("Strategy Fund") may engage in the
following non-principal investment techniques as indicated:
BORROWING
Each fund, except the Cash Fund, may obtain fixed interest rate loans and invest
the loan proceeds in other assets. If the securities purchased with such
borrowed money decrease in value or do not increase enough to cover interest and
other borrowing costs, the funds will suffer greater losses than if no borrowing
took place.
COLLATERALIZED MORTGAGE OBLIGATIONS
Each fund, except the Cash Fund, may invest in collateralized mortgage
obligations (CMOs). Early payoffs on the underlying loans may result in the fund
receiving less income than originally anticipated. The variability in
prepayments tends to limit price gains when interest rates drop and exaggerate
price declines when interest rates rise. In the event of high prepayments, the
fund may be required to invest the proceeds at lower interest rates, causing the
fund to earn less than if the prepayments had not occurred.
DERIVATIVES
Each fund, except the Cash Fund, may buy and write call and put options on
securities, securities indices, and foreign currencies, and may enter into
futures contracts and related options. The Foreign and Managed Assets Funds may
also enter into swap agreements relating to interest rates, foreign currencies,
and securities indices and forward foreign currency contracts. The funds may use
these techniques to hedge against changes in interest rates, foreign currency
exchange rates, changes in securities prices or other factors affecting the
value of their investments, or as part of their overall investment technique. If
the subadviser fails to correctly predict these changes, the funds can lose
money. Derivatives transactions may be less liquid than other securities and the
counterparty to such transaction may not perform as expected. In addition,
futures and options involve market risk in excess of their value.
FOREIGN SECURITIES
Appreciation and Growth & Income Funds may invest in securities of foreign
(non-U.S.) issuers, including foreign debt securities and American Depository
Receipts (ADRs).
40 Phoenix-Zweig Trust
<PAGE>
Investments in non-U.S. securities involve additional risks and conditions,
including differences in accounting standards, generally higher commission
rates, differences in transaction settlement systems, political instability, and
the possibility of confiscatory or expropriation taxes, all of which may
negatively impact the funds. Dividends and other income payable on foreign
securities may also be subject to foreign taxes.
Some foreign investments may be made in currencies other than U.S. dollars that
will fluctuate in value as a result of changes in the currency exchange rate. In
addition, foreign markets and currencies may not perform as well as U.S.
markets.
Risks associated with foreign investments may be intensified in emerging market
countries, and such countries and companies doing business in such countries may
not have the same range of opportunities and have more obstacles to financial
success than their counterparts in developed nations.
ILLIQUID SECURITIES
Each fund, except the Cash fund, may invest in illiquid securities. Illiquid and
restricted securities may be difficult to sell or may be sold only pursuant to
certain legal restrictions. Difficulty in selling securities may result in a
loss to the fund or entail expenses not normally associated with the sale of a
security.
MONEY MARKET INSTRUMENTS
The funds may invest in short-term high-quality debt securities to reduce
exposure to stock and bond markets and to reduce fluctuations in a fund's net
asset value. Money market securities include short-term U.S. Government
obligations, commercial paper, other short-term corporate obligations, bank
deposits and other financial institution obligations.
MUTUAL FUND INVESTING
The funds may invest in shares of other mutual funds. Assets invested in other
mutual funds incur a layering of expenses including operating costs, advisory
fees and administrative fees that you, as a shareholder in the funds, indirectly
bear.
REPURCHASE AGREEMENTS
The funds may invest in repurchase agreements. Default or insolvency of the
other party presents a risk to the funds.
SECURITIES LENDING
Each fund, except the Cash Fund, may loan portfolio securities to increase
investment returns. If the borrower is unwilling or unable to return the
borrowed securities when due, the fund can suffer losses.
Phoenix-Zweig Trust 41
<PAGE>
SELLING SHORT
Each fund, except the Cash fund, may sell a security or future short. In order
to establish a short position in a security, the fund must first borrow the
security from a broker or other institution to complete the sale. The fund may
not always be able to borrow a security, or to close out a short position at a
particular time or at an acceptable price. If the price of the borrowed security
increases between the date of the short sale and the date on which the fund
replaces the security, the fund may experience losses. The fund's losses on a
short sale is limited only by the maximum attainable price of the security
(which could be limitless) less the price the fund paid for the security at the
time it was borrowed.
U.S. GOVERNMENT SECURITIES
Appreciation and Growth & Income Funds may invest in U.S. Government securities
with maturities of five years or less. Obligations issued or guaranteed by the
U.S. Government, its agencies, authorities and instrumentalities only guarantee
principal and interest will be timely paid. The entities do not guarantee that
the value of portfolio shares will increase. In addition, not all U.S.
Government securities are backed by the full faith and credit of the United
States.
WHEN-ISSUED AND DELAYED-DELIVERY TRANSACTIONS
The funds may purchase a bond or stock with delivery of the security and payment
deferred to a future date. The value of the security on settlement date may be
more or less than the price paid as a result of changes in interest rates and
market conditions. If the value on settlement date is less, the value of your
shares may decline.
The funds may buy other types of securities or employ other portfolio management
techniques. Please refer to the Statement of Additional Information for more
detailed information about these and other investment techniques of the funds.
42 Phoenix-Zweig Trust
<PAGE>
MANAGEMENT OF THE FUNDS
--------------------------------------------------------------------------------
THE ADVISERS
Phoenix/Zweig Advisers LLC ("Phoenix/Zweig") (formerly Zweig/Glaser Advisers
LLC) is the investment adviser to each of the funds and is located at 900 Third
Avenue, New York, NY 10022. As of December 31, 1999, Phoenix/Zweig was managing
twelve funds with net assets of approximately $1.8 billion and acting as adviser
to two closed-end funds with more than $1.4 billion in assets. Phoenix/Zweig has
been managing funds since 1989.
Phoenix/Zweig is a wholly-owned subsidiary of Phoenix Investment Partners, Ltd.
("PXP"), a Delaware corporation, located at 56 Prospect St., Hartford, CT 06115.
PXP is a publicly-traded independent registered investment advisory firm, and
has served investors for over 70 years. As of December 31, 1999, PXP had over
$64.6 billion in assets under management.
Subject to the direction of the Trust's Board of Trustees, Phoenix/Zweig is
responsible for managing the funds' investment program, selecting specific
securities for the funds, and maintaining the general operations of the funds.
Phoenix/Zweig manages the funds' assets to conform with the investment policies
as described in this prospectus.
The funds pay Phoenix/Zweig a monthly investment management fee that is accrued
daily against the value of the fund's net assets at the following annual rates.
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
Appreciation Fund,
Foreign Equity Fund, Growth & Income
and Managed Fund and Government
Assets Fund Strategy Fund Government Fund Cash Fund
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Management Fee 1.00% 0.75% 0.60% 0.50%
----------------------------------------------------------------------------------------------------
</TABLE>
Zweig Consulting LLC ("Zweig Consulting"), a New York limited liability company,
acts as the investment subadviser for the funds and is located at 900 Third
Avenue, New York, NY 10022. Dr. Martin E. Zweig serves as President of the Trust
and of Zweig Consulting. Dr. Zweig and his associates determine the asset
allocation strategy for all of the Phoenix-Zweig mutual funds, except the
Government Cash Fund. Dr. Zweig does not select the individual securities to
implement the strategy. The portfolio managers select the specific securities
for each fund. Dr. Martin E. Zweig, President of Zweig Consulting LLC, developed
the asset allocation strategy that he and his team employ. Dr. Zweig has been a
regular panelist on PBS television's Wall $treet Week with Louis Rukeyser for
over 25 years and, in 1992, was inducted into the program's Hall of Fame. He is
also the author of the books Winning on Wall Street, The ABCs of Market
Forecasting and Winning with New IRAs.
Phoenix/Zweig pays Zweig Consulting a subadvisory fee of approximately
$2,500,000 per year, allocated monthly.
Phoenix-Zweig Trust 43
<PAGE>
The adviser has voluntarily agreed to assume operating expenses of the
Government Cash Fund (excluding interest, taxes, brokerage commissions, 12b-1
fees, and extraordinary expenses) until April 30, 2001 to the extent that such
expenses exceed 0.35% of the average annual net assets of that fund.
During the funds' last fiscal year, the funds paid total management fees of
$15,198,917.
PORTFOLIO MANAGEMENT
Investment and trading decisions for the funds are made by a team of investment
professionals. Dr. Martin E. Zweig, President of Zweig Consulting, and a team of
analysts determine the overall asset allocation strategy for each of the funds,
except the Government Cash Fund. Carlton Neel and his team of portfolio managers
are primarily responsible for the day-to-day investment decisions related to the
funds.
Dr. Zweig is President of Zweig Consulting LLC and of the Trust. He serves as
Chairman and President of The Zweig Total Return Fund, Inc. (since 1988) and The
Zweig Fund, Inc. (since 1986); Managing Director of Zweig-DiMenna Associates
LLC; President of Zweig-DiMenna International Managers, Inc., Zweig-DiMenna
Associates, Inc. and Gotham Advisors, Inc. He serves as a member of the
Undergraduate Executive Board of the Wharton School, University of Pennsylvania
and as Trustee of the Manhattan Institute. Prior to March 1, 1999, Dr. Zweig
served as Chairman of the adviser and of Euclid Advisors LLC.
Carlton Neel has served as the senior portfolio manager for the Strategy Fund,
Appreciation Fund and Growth & Income Fund since January 1, 2000, for Managed
Assets and the Government Fund since July 5, 1995, and for the Foreign Equity
Fund since its inception. Mr. Neel is Senior Vice President of the Trust and of
Phoenix/Zweig Advisers LLC. Mr. Neel received a dual B.A. in Economics and
Political Science from Brown University. Prior to joining the Zweig Companies,
he was a Vice President with J.P. Morgan & Co., Inc.
Beth Abraham has served as portfolio manager for the Government Cash Fund and as
an Assistant Vice President of the Trust since 1995. Ms. Abraham's experience
includes consulting to the mutual fund industry and acting as a Senior
Compliance Examiner in the New York Regional Office of the Securities and
Exchange Commission.
44 Phoenix-Zweig Trust
<PAGE>
PRICING OF FUND SHARES
--------------------------------------------------------------------------------
HOW IS THE SHARE PRICE DETERMINED?
Each fund calculates a share price for each class of its shares. The share price
is based on the net assets of the fund and the number of outstanding shares. In
general, each fund calculates net asset value by:
o adding the values of all securities and other assets of the fund,
o subtracting liabilities, and
o dividing the result by the total number of outstanding shares of the
fund.
The Government Cash Fund attempts to stabilize the net asset value of its shares
at $1.00 and uses the amortized cost method (which approximates market value) to
value its securities.
Asset Value: Each fund's investments are valued at market value. If market
quotations are not available, a fund determines a "fair value" for an investment
according to rules and procedures approved by the Trustees. Foreign forward
currency contracts are valued using forward currency exchange rates supplied by
a quotation service. Short-term investments having a remaining maturity of sixty
days or less are valued at amortized cost, which the Trustees have determined
approximates market value.
Liabilities: Class specific expenses, distribution fees, service fees and other
liabilities that are deducted from the assets of each class. Expenses and
liabilities that are not class specific (such as management fees) are allocated
to each class in proportion to each class' net assets, except where an
alternative allocation can be more fairly made.
Net Asset Value: The liability allocated to a class plus any other expenses are
deducted from the proportionate interest of such class in the assets of a fund.
The resulting amount for each class is then divided by the number of shares
outstanding of that class to produce each class' net asset value per share.
The net asset value per share of each class of each fund is determined on days
when the New York Stock Exchange (the "NYSE") is open for trading as of the
close of trading (normally 4:00 PM eastern time) and as of 2:00 PM eastern time
for the Government Cash Fund. If the funds hold securities that are traded on
foreign exchanges that trade on weekends or other holidays when the funds do
not price their shares, the net asset value of the funds' shares may change on
days when shareholders will not be able to purchase or redeem the funds'
shares.
AT WHAT PRICE ARE SHARES PURCHASED?
All investments received by the funds' authorized agents prior to the close of
regular trading on the NYSE (normally 4:00 PM eastern time), or 2:00 PM eastern
time for the Government Cash Fund, will be executed based on that day's net
asset value. Shares credited to your account from the reinvestment of fund
distributions will be in full and fractional shares that are
Phoenix-Zweig Trust 45
<PAGE>
purchased at the closing net asset value on the next business day on which the
fund's net asset value is calculated following the dividend record date.
SALES CHARGES
--------------------------------------------------------------------------------
WHAT ARE THE CLASSES AND HOW DO THEY DIFFER?
The Government Cash Fund offers five classes of shares (four of which are
described in this prospectus), the Foreign Equity Fund offers three classes of
shares, and each of the other funds offers four classes of shares. Each class of
shares has different sales and distribution charges (see "Fund Expenses"
previously in this prospectus). The Trust has adopted distribution and service
plans allowed under Rule 12b-1 of the Investment Company Act of 1940 that
authorize the fund to pay distribution and service fees for the sale of its
shares and for services provided to shareholders.
WHAT ARRANGEMENT IS BEST FOR YOU?
The different classes permit you to choose the method of purchasing shares that
is most beneficial to you. In choosing a class, consider the amount of your
investment, the length of time you expect to hold the shares, whether you decide
to receive distributions in cash or to reinvest them in additional shares, and
any other personal circumstances. Depending upon these considerations, the
accumulated distribution and service fees and contingent deferred sales charges
of one class may be more or less than the initial sales charge and accumulated
distribution and service fees of another class of shares bought at the same
time. Because distribution and service fees are paid out of the fund's assets on
an ongoing basis, these fees, over time, will increase the cost of your
investment and may cost you more than paying other types of sales charges.
CLASS A SHARES. If you purchase Class A Shares, you will pay a maximum sales
charge at the time of purchase equal to 5.75% of the offering price (6.10% of
the amount invested) for the Appreciation Fund, Foreign Equity Fund, Growth &
Income Fund, Managed Assets, and Strategy Fund, and 4.75% of the offering price
(4.99% of the amount invested) for the Government Fund. The Government Cash Fund
has no sales charge for Class A Shares. The sales charge may be reduced or
waived under certain conditions. See "Initial Sales Charge Alternative--Class A
Shares" below. Generally, Class A Shares are not subject to any charges by the
fund when redeemed; however, a 1% CDSC is imposed on redemptions within the
first 12 months on purchases of $1 million or more if originally purchased
without an initial sales charge (except for the Government Cash Fund). Class A
Shares have lower distribution and service fees (0.30%) and pay higher dividends
than Class B or Class C Shares.
CLASS B SHARES. If you purchase Class B Shares, you will not pay a sales charge
at the time of purchase. If you sell your Class B Shares within the first six
years after they are purchased, you will pay a sales charge of up to 5% of your
shares' value. See "Deferred Sales Charge
46 Phoenix-Zweig Trust
<PAGE>
Alternative--Class B and Class C Shares" below. This charge declines to 0% over
a period of six years and may be waived under certain conditions. Class B Shares
have higher distribution and service fees (1.00%) and pay lower dividends than
Class A Shares. Class B Shares automatically convert to Class A Shares seven
years after purchase. Purchase of Class B Shares may be inappropriate for any
investor who may qualify for reduced sales charges of Class A Shares and anyone
who is over 85 years of age. The distributor may decline purchases in such
situations.
CLASS C SHARES. If you purchase Class C Shares, you will not pay a sales charge
at the time of purchase. If you sell your Class C Shares within the first year
after they are purchased, you will pay a sales charge of 1.25%. See "Deferred
Sales Charge Alternative--Class B and Class C Shares" below. Class C Shares have
the same distribution and service fees of 1.00%, except for the Government and
Government Cash Funds which are 0.75% and 0.30%, respectively, and pay
comparable dividends as Class B Shares. Class C Shares do not convert to any
other class of shares of the fund.
CLASS I SHARES (EXCEPT THE FOREIGN EQUITY FUND). Class I Shares are offered
primarily to persons subject to the adviser's Code of Ethics relating to
personal securities transactions and to tax-exempt retirement plans specifically
affiliated with the adviser, as well as certain institutional investors. If you
are eligible to purchase and do purchase Class I Shares, you will pay no sales
charge at any time. There are no distribution and services fees applicable to
Class I Shares. Class I Shares are not available in all states. Please refer to
"Alternative Purchase Arrangements" in the Statement of Additional Information
to see if you qualify.
INITIAL SALES CHARGE ALTERNATIVE--CLASS A SHARES
The public offering price of Class A Shares is the net asset value plus a sales
charge that varies depending on the size of your purchase (see "Class A
Shares--Reduced Initial Sales Charges: Combination Purchase Privilege" in the
Statement of Additional Information). Shares purchased based on the automatic
reinvestment of income dividends or capital gain distributions are not subject
to any sales charges. The sales charge is divided between your investment dealer
and the fund's distributor (Phoenix Equity Planning Corporation or "PEPCO").
Phoenix-Zweig Trust 47
<PAGE>
SALES CHARGE YOU MAY PAY TO PURCHASE CLASS A SHARES
SALES CHARGE AS
AMOUNT OF A PERCENTAGE OF
TRANSACTION -----------------------------
AT OFFERING PRICE NET
(ALL FUNDS, EXCEPT GOVERNMENT AND OFFERING AMOUNT
GOVERNMENT CASH FUNDS) PRICE INVESTED
----------------------------------------------------------------------------
Under $50,000 5.75% 6.10%
$50,000 but under $100,000 4.75 4.99
$100,000 but under $250,000 3.75 3.90
$250,000 but under $500,000 2.75 2.83
$500,000 but under $1,000,000 2.00 2.04
$1,000,000 or more None None
GOVERNMENT FUND
----------------------------------------------------------------------------
Under $50,000 4.75% 4.99%
$50,000 but under $100,000 4.50 4.71
$100,000 but under $250,000 3.50 3.63
$250,000 but under $500,000 2.75 2.83
$500,000 but under $1,000,000 2.00 2.04
$1,000,000 or more None None
There is no initial sales charge on purchases of the Government Cash Fund's
Class A Shares.
DEFERRED SALES CHARGE ALTERNATIVE--CLASS B AND CLASS C SHARES
Class B and Class C Shares are purchased without an initial sales charge;
however, shares sold within a specified time period are subject to a declining
contingent deferred sales charge ("CDSC") at the rates listed below. The sales
charge will be multiplied by the then current market value or the initial cost
of the shares being redeemed, whichever is less. No sales charge will be imposed
on increases in net asset value or on shares purchased through the reinvestment
of income dividends or capital gain distributions. To minimize the sales charge,
shares not subject to any charge will be redeemed first, followed by shares held
the longest time. To calculate the amount of shares owned and time period held,
all Class B Shares purchased in any month are considered purchased on the last
day of the preceding month, and all Class C Shares are considered purchased on
the trade date.
DEFERRED SALES CHARGE YOU MAY PAY TO SELL CLASS B SHARES
YEAR 1 2 3 4 5 6 7
--------------------------------------------------------------------------------
CDSC 5% 4% 3% 3% 2% 1% 0%
DEFERRED SALES CHARGE YOU MAY PAY TO SELL CLASS C SHARES
YEAR 1 2+
--------------------------------------------------------------------------------
CDSC 1.25% 0%
48 Phoenix-Zweig Trust
<PAGE>
YOUR ACCOUNT
--------------------------------------------------------------------------------
OPENING AN ACCOUNT
Your financial advisor can assist you with your initial purchase as well as all
phases of your investment program. If you are opening an account by yourself,
please follow the instructions outlined below.
STEP 1.
Your first choice will be the initial amount you intend to invest.
Minimum INITIAL investments:
o $25 for individual retirement accounts (IRAs), or accounts that use
the systematic exchange privilege, or accounts that use the
Investo-Matic program (see below for more information on the
Investo-Matic program).
o There is no initial dollar requirement for defined contribution
plans, profit-sharing plans, or employee benefit plans. There is
also no minimum for reinvesting dividends and capital gains into
another account.
o $500 for all other accounts.
Minimum ADDITIONAL investments:
o $25 for any account.
o There is no minimum for defined contribution plans, profit-sharing
plans, or employee benefit plans. There is also no minimum for
reinvesting dividends and capital gains into an existing account.
The funds reserve the right to refuse a purchase order for any reason.
STEP 2.
Your second choice will be what class of shares to buy. The funds offer Class A,
Class B and Class C Shares for individual investors, as well as Class I Shares
(except for the Foreign Equity Fund) to qualified investors. Each has different
sales and distribution charges. Because all future investments in your account
will be made in the share class you choose when you open your account, you
should make your decision carefully. Your financial advisor can help you pick
the share class that makes the most sense for your situation.
STEP 3.
Your next choice will be how you want to receive any dividends and capital gain
distributions. Your options are:
o Receive both dividends and capital gain distributions in additional
shares;
Phoenix-Zweig Trust 49
<PAGE>
o Receive dividends in additional shares and capital gain distributions
in cash;
o Receive dividends in cash and capital gain distributions in
additional shares; or
o Receive both dividends and capital gain distributions in cash.
No interest will be paid on uncashed distribution checks.
HOW TO BUY SHARES
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
----------------------------------- ----------------------------------------------------------------------------
TO OPEN AN ACCOUNT
----------------------------------- ----------------------------------------------------------------------------
<S> <C>
Through a financial advisor Contact your advisor. Some advisors may charge a fee and may set
different minimum investments or limitations on buying shares.
----------------------------------- ----------------------------------------------------------------------------
Through the mail Complete a New Account Application and send it with a check payable
to the fund. Mail them to: State Street Bank, Attn: Phoenix Funds,
P.O. Box 8301, Boston, MA 02266-8301.
----------------------------------- ----------------------------------------------------------------------------
Through express delivery Complete a New Account Application and send it with a check payable to the
fund. Send them to: Boston Financial Data Services, Attn: Phoenix Funds,
66 Brooks Drive, Braintree, MA 02184.
----------------------------------- ----------------------------------------------------------------------------
By Federal Funds wire Call us at (800) 243-1574 (press 1, then 0).
----------------------------------- ----------------------------------------------------------------------------
By Investo-Matic Complete the appropriate section on the application and send it with your
initial investment payable to the fund. Mail them to: State Street Bank,
P.O. Box 8301, Boston, MA 02266-8301.
----------------------------------- ----------------------------------------------------------------------------
By telephone exchange Call us at (800) 243-1574 (press 1, then 0).
----------------------------------- ----------------------------------------------------------------------------
</TABLE>
HOW TO SELL SHARES
--------------------------------------------------------------------------------
You have the right to have the funds buy back shares at the net asset value next
determined after receipt of a redemption order by the funds' Transfer Agent or
an authorized agent. In the case of a Class B or Class C Share redemption, you
will be subject to the applicable deferred sales charge, if any, for such
shares. Subject to certain restrictions, shares may be redeemed by telephone or
in writing. In addition, shares may be sold through securities dealers, brokers
or agents who may charge customary commissions or fees for their services. The
funds do not charge any redemption fees. Payment for shares redeemed is made
within seven days; however, redemption proceeds will not be disbursed until each
check used for purchases of shares
50 Phoenix-Zweig Trust
<PAGE>
has been cleared for payment by your bank, which may take up to 15 days after
receipt of the check.
<TABLE>
<CAPTION>
------------------------------------ -----------------------------------------------------------------------------
TO SELL SHARES
------------------------------------ -----------------------------------------------------------------------------
<S> <C>
Through a financial advisor Contact your advisor. Some advisors may charge a fee and may set
different minimums on redemptions of accounts.
------------------------------------ -----------------------------------------------------------------------------
Through the mail Send a letter of instruction and any share certificates (if you hold
certificate shares) to: State Street Bank, Attn: Phoenix Funds, P.O. Box
8301, Boston, MA 02266-8301. Be sure to include the registered owner's
name, fund and account number, and number of shares or dollar value you
wish to sell.
------------------------------------ -----------------------------------------------------------------------------
Through express delivery Send a letter of instruction and any share certificates (if you hold
certificate shares) to: Boston Financial Data Services, Attn: Phoenix
Funds, 66 Brooks Drive, Braintree, MA 02184. Be sure to include the registered
owner's name, fund and account number, and number of shares or dollar value you
wish to sell.
------------------------------------ -----------------------------------------------------------------------------
By telephone For sales up to $50,000, requests can be made by calling (800) 243-1574.
------------------------------------ -----------------------------------------------------------------------------
By telephone exchange Call us at (800) 243-1574 (press 1, then 0).
------------------------------------ -----------------------------------------------------------------------------
By Check (Government Fund and If you selected the checkwriting feature, you may write checks for amounts
Government Cash Fund only.) of $500 or more. Checks may not be used to close an account.
------------------------------------ -----------------------------------------------------------------------------
</TABLE>
THINGS YOU SHOULD KNOW WHEN SELLING SHARES
--------------------------------------------------------------------------------
You may realize a taxable gain or loss (for federal income tax purposes) if you
redeem shares of the fund. Each fund reserves the right to pay large redemptions
"in-kind" (in securities owned by the fund rather than in cash). Large
redemptions are those over $250,000 or 1% of the fund's net assets. Additional
documentation will be required for redemptions by organizations, fiduciaries, or
retirement plans, or if redemption is requested by anyone but the shareholder(s)
of record. Transfers between broker-dealer "street" accounts are governed by the
accepting broker-dealer. Questions regarding this type of transfer should be
directed to your financial advisor. Redemption requests will not be honored
until all required documents in proper form have been received. To avoid delay
in redemption or transfer, shareholders having questions about specific
requirements should contact the funds' Transfer Agent at (800) 243-1574.
Phoenix-Zweig Trust 51
<PAGE>
REDEMPTIONS BY MAIL
> If you are selling shares held individually, jointly, or as custodian
under the Uniform Gifts to Minors Act or Uniform Transfers to Minors
Act.
Send a clear letter of instruction if all of these apply:
o The proceeds do not exceed $50,000.
o The proceeds are payable to the registered owner at the address on
record.
Send a clear letter of instruction with a signature guarantee when any
of these apply:
o You are selling more than $50,000 worth of shares.
o The name or address on the account has changed within the last 60
days.
o You want the proceeds to go to a different name or address than on
the account.
> If you are selling shares held in a corporate or fiduciary account,
please contact the funds' Transfer Agent at (800) 243-1574.
If required, the signature guarantee on your request must be made by an eligible
guarantor institution as defined by the funds' Transfer Agent in accordance with
its signature guarantee procedures. Currently, such procedures generally permit
guarantees by banks, broker-dealers, credit unions, national securities
exchanges, registered securities associations, clearing agencies and savings
associations.
SELLING SHARES BY TELEPHONE
The Transfer Agent will use reasonable procedures to confirm that telephone
instructions are genuine. Address and bank account information are verified,
redemption instructions are taped, and all redemptions are confirmed in writing.
The individual investor bears the risk from instructions given by an
unauthorized third party that the Transfer Agent reasonably believed to be
genuine.
The Transfer Agent may modify or terminate the telephone redemption privilege at
any time with 60 days notice to shareholders.
During times of drastic economic or market changes, telephone redemptions may be
difficult to make or temporarily suspended.
52 Phoenix-Zweig Trust
<PAGE>
ACCOUNT POLICIES
--------------------------------------------------------------------------------
ACCOUNT REINSTATEMENT PRIVILEGE
For 180 days after you have made a partial or complete redemption of your Class
A, Class B, or Class C Shares, you can purchase Class A Shares of any fund at
net asset value, with no sales charge, by reinvesting all or part of your
proceeds, but not more. Send your written request to State Street Bank, P.O. Box
8301, Boston, MA 02266-8301. You can call us at (800) 243-1574 for more
information.
Please remember, a redemption and reinvestment are considered to be a sale and
purchase for tax-reporting purposes. Class B and Class C shareholders who have
had the contingent deferred sales charge waived because they are in the
Systematic Withdrawal Program are not eligible for this reinstatement privilege.
REDEMPTION OF SMALL ACCOUNTS
Due to the high cost of maintaining small accounts, if your account balance is
less than $200, you may receive a notice requesting you to bring the balance up
to $200 within 60 days. If you do not, the shares in the account will be sold at
net asset value, and a check will be mailed to the address of record.
EXCHANGE PRIVILEGES
You should carefully read the prospectus of the fund into which you want to
exchange before deciding to make an exchange. You can obtain a prospectus from
your financial advisor or by calling us at (800) 243-1574 or accessing our Web
site at www.phoenixinvestments.com.
o You may exchange shares for another fund in the same class of
shares; e.g., Class A for Class A. Exchange privileges may not be
available for all Phoenix Funds, and may be rejected or suspended.
o Exchanges may be made by telephone ((800) 243-1574) or by mail
(State Street Bank, P.O. Box 8301, Boston, MA 02266-8301).
o The amount of the exchange must be equal to or greater than the
minimum initial investment required.
o The exchange of shares is treated as a sale and a purchase for
federal income tax purposes.
o Because excessive trading can hurt fund performance and harm other
shareholders, the fund reserves the right to temporarily or
permanently end exchange privileges or reject an order from anyone
who appears to be attempting to time the market, including investors
who request more than one exchange in any 30-day period. The fund's
distributor has entered into agreements with certain timing firms
permitting
Phoenix-Zweig Trust 53
<PAGE>
them to exchange by telephone. These privileges are limited, and the
funds' distributor has the right to reject or suspend them.
o Class A Shares of the Government Cash Fund purchased without a sales
charge are exchangeable at net asset value plus the applicable sales
charge. Exchange privileges do not apply to Class M Shares of the
Government Cash Fund.
RETIREMENT PLANS
Shares of the fund may be used as investments under the following qualified
prototype retirement plans: traditional IRA, rollover IRA, SIMPLE IRA, Roth IRA,
401(k) plans, profit-sharing, money purchase plans, and 403(b) plans. For more
information, call (800) 243-4361.
INVESTOR SERVICES
--------------------------------------------------------------------------------
INVESTO-MATIC is a systematic investment plan that allows you to have a
specified amount automatically deducted from your checking or savings account
and then deposited into your mutual fund account. Just complete the Automatic
Investment Plan section on the application and include a voided check.
SYSTEMATIC EXCHANGE allows you to automatically move money from one fund to
another on a monthly, quarterly, semiannual or annual basis. Shares of one fund
will be exchanged for shares of the same class of another fund at the interval
you select. To sign up, just complete the Systematic Exchange Section on the
application. Exchange privileges may not be available for all Phoenix Funds, and
may be rejected or suspended.
TELEPHONE EXCHANGE lets you exchange shares of one fund for the same class of
shares in another fund, using our customer service telephone service. See the
Telephone Exchange Section on the application. Exchange privileges may not be
available for all Phoenix Funds, and may be rejected or suspended.
SYSTEMATIC WITHDRAWAL PROGRAM allows you to periodically redeem a portion of
your account on a predetermined monthly, quarterly, semiannual, or annual basis.
Sufficient shares will be redeemed on the 15th of the month at the closing net
asset value so that the payment is made about the 20th of the month. The program
also provides for redemptions on or about the 10th, 15th, or 25th with proceeds
directed through Automated Clearing House (ACH) to your bank. The minimum
withdrawal is $25, and minimum account balance requirements continue.
Shareholders in the program must own fund shares worth at least $5,000 and elect
to have all dividends reinvested.
54 Phoenix-Zweig Trust
<PAGE>
TAX STATUS OF DISTRIBUTIONS
--------------------------------------------------------------------------------
The fund plans to make distributions from net investment income at intervals
stated in the table below and to distribute net realized capital gains, if any,
at least annually.
--------------------------------------------------------------------------------
FUND DIVIDEND PAID
--------------------------------------------------------------------------------
Appreciation Fund Annually
--------------------------------------------------------------------------------
Foreign Equity Fund Annually
--------------------------------------------------------------------------------
Government Cash Fund Monthly (declared Daily)
--------------------------------------------------------------------------------
Government Fund Monthly
--------------------------------------------------------------------------------
Growth & Income Fund Semiannually
--------------------------------------------------------------------------------
Managed Assets Semiannually
--------------------------------------------------------------------------------
Strategy Fund Semiannually
--------------------------------------------------------------------------------
Distributions of short-term capital gains and net investment income are taxable
to shareholders as ordinary income. Long-term capital gain if any, distributed
to shareholders and which are designated by the fund as capital gain
distributions, are taxable to shareholders as long-term capital gain
distributions regardless of the length of time you have owned your shares.
Unless you elect to receive distributions in cash, dividends and capital gain
distributions are paid in additional shares. All distributions, cash or
additional shares, are subject to federal income tax and may be subject to
state, local and other taxes.
Phoenix-Zweig Trust 55
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
These tables are intended to help you understand the funds' financial
performance since inception. Certain information reflects financial results for
a single fund share. The total returns in the table represent the rate that an
investor would have earned or lost on an investment in the fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by PricewaterhouseCoopers LLP, independent accountants, except as
indicated. Their report, together with the funds' financial statements, are
included in the funds' most recent Annual Report, which is available upon
request.
PHOENIX-ZWEIG APPRECIATION FUND
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------------------
SIX MONTHS
ENDED
6/30/00 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1999 1998 1997 1996 1995
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.99 $16.21 $18.27 $15.90 $15.91 $13.54
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.08(4) 0.11(4) 0.07 0.10 0.17 0.16
Net realized and unrealized gain
(loss) 0.14 (0.51) (0.32) 3.67 2.25 3.05
---- ----- ----- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS 0.22 (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 0.22 (4.22) (2.06) 2.37 (0.01) 2.37
---- ----- ----- ---- ----- ----
NET ASSET VALUE, END OF PERIOD $12.21 $11.99 $16.21 $18.27 $15.90 $15.91
====== ====== ====== ====== ====== ======
Total return(1) 1.75%(3) (1.80)% (0.97)% 23.83% 15.39% 24.00%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $95,723 $124,461 $240,900 $293,809 $275,935 $272,590
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.76%(2) 1.58% 1.52% 1.52% 1.62% 1.63%
Net investment income 1.30%(2) 0.74% 0.34% 0.61% 1.03% 1.10%
Portfolio turnover rate 121%(3) 92% 117% 77% 88% 68%
</TABLE>
----------------------------------
(1) Maximum sales charge is not reflected in the total return calculation.
(2) Annualized.
(3) Not annualized
(4) Computed using average shares outstanding.
56 Phoenix-Zweig Trust
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
PHOENIX-ZWEIG APPRECIATION FUND
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------------------
SIX MONTHS FROM
ENDED INCEPTION
6/30/00 YEAR ENDED DECEMBER 31, 4/8/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
----------- ---- ---- ---- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.80 $16.02 $18.13 $15.82 $16.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.04(4) 0.01(4) (0.06) (0.02) 0.03
Net realized and unrealized gain (loss) 0.13 (0.51) (0.31) 3.64 1.74
---- ----- ------ ---- ----
TOTAL FROM INVESTMENT OPERATIONS 0.17 (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 0.17 (4.22) (2.11) 2.31 (0.52)
---- ----- ----- ---- -----
NET ASSET VALUE, END OF PERIOD $11.97 $11.80 $16.02 $18.13 $15.82
====== ====== ====== ====== ======
Total return(1) 1.44%(3) (2.45)% (1.66)% 22.97% 11.01%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $16,617 $19,523 $30,370 $22,122 $8,350
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.46%(2) 2.27% 2.22% 2.22% 2.32%(2)
Net investment income (loss) 0.60%(2) 0.08% (0.36)% (0.09)% 0.33%(2)
Portfolio turnover rate 121%(3) 92% 117% 77% 88%
</TABLE>
PHOENIX-ZWEIG APPRECIATION FUND
<TABLE>
<CAPTION>
CLASS C
---------------------------------------------------------------------------
SIX MONTHS
ENDED
6/30/00 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1999 1998 1997 1996 1995
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.79 $15.99 $18.10 $15.79 $15.83 $13.36
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.04(4) --(4) (0.07) (0.02) 0.06 0.06
Net realized and unrealized gain
(loss) 0.13 (0.50) (0.30) 3.64 2.22 3.03
---- ----- ----- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS 0.17 (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 0.17 (4.20) (2.11) 2.31 (0.04) 2.47
---- ----- ----- ---- ----- ----
NET ASSET VALUE, END OF PERIOD $11.96 $11.79 $15.99 $18.10 $15.79 $15.83
====== ====== ====== ====== ====== ======
Total return(1) 1.44%(3) (2.49)% (1.67)% 23.01% 14.54% 23.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $61,663 $89,165 $201,789 $248,584 $218,714 $195,204
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.45%(2) 2.28% 2.22% 2.22% 2.32% 2.33%
Net investment income (loss) 0.61%(2) 0.02% (0.36)% (0.09)% 0.33% 0.40%
Portfolio turnover rate 121%(3) 92% 117% 77% 88% 68%
</TABLE>
----------------------------------
(1) Maximum sales charge is not reflected in the total return calculation.
(2) Annualized.
(3) Not annualized.
(4) Computed using average shares outstanding.
Phoenix-Zweig Trust 57
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
PHOENIX-ZWEIG APPRECIATION FUND
<TABLE>
<CAPTION>
CLASS I
--------------------------------------------------------------
SIX MONTHS FROM
ENDED INCEPTION
6/30/00 YEAR ENDED DECEMBER 31, 11/1/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
----------- ---- ---- ---- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.21 $16.43 $18.46 $16.04 $17.28
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.10(4) 0.17(4) 0.09 0.15 0.04
Net realized and unrealized gain (loss) 0.13 (0.52) (0.29) 3.71 1.02
---- ----- ----- ---- ----
TOTAL FROM INVESTMENT OPERATIONS 0.23 (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 0.23 (4.22) (2.03) 2.42 (1.24)
---- ----- ----- ---- -----
NET ASSET VALUE, END OF PERIOD $12.44 $12.21 $16.43 $18.46 $16.04
====== ====== ====== ====== ======
Total return(1) 1.88%(3) (1.45)% (0.67)% 24.17% 6.30%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,775 $1,903 $2,760 $2,735 $2,202
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.48%(2) 1.27% 1.22% 1.22% 1.32%(2)
Net investment income (loss) 1.60%(2) 1.14% 0.64% 0.91% 1.33%(2)
Portfolio turnover rate 121%(3) 92% 117% 77% 88%
</TABLE>
----------------------------------
(1) Maximum sales charge is not reflected in the total return calculation.
(2) Annualized.
(3) Not annualized.
(4) Computed using average shares outstanding.
58 Phoenix-Zweig Trust
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
PHOENIX-ZWEIG FOREIGN EQUITY FUND
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED INCEPTION
6/30/00 DECEMBER 31, 11/24/97 TO
(UNAUDITED) 1999 1998 12/31/97
----------- ---- ---- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $14.30 $12.39 $11.45 $11.34
INCOME FROM INVESTMENT OPERATIONS(7)
Net investment income (0.04)(4) --(6) 0.08(8) 0.01(8)
Net realized and unrealized gain (0.18) 2.81 0.96 0.11
----- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS (0.22) 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 (0.22) 1.91 0.94 0.11
----- ---- ---- ----
NET ASSET VALUE, END OF PERIOD $14.18 $14.30 $12.39 $11.45
====== ====== ====== ======
Total return(1) (1.54)%(3) 22.98% 9.08% 1.09%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,156 $1,436 $2,122 $414
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 3.86%(2) 2.66% 1.80% 1.80%(2)
Net investment income (0.62)%(2) --% 1.14%(8) 1.20%(2)(8)
Portfolio turnover rate 2%(3) 42% 40% 64%(2)
</TABLE>
PHOENIX-ZWEIG FOREIGN EQUITY FUND
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED INCEPTION
6/30/00 DECEMBER 31, 11/24/97 TO
(UNAUDITED) 1999 1998 12/31/97
----------- ---- ---- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $14.20 $12.35 $11.45 $11.34
INCOME FROM INVESTMENT OPERATIONS(7)
Net investment income (0.09)(6) (0.12)(6) 0.04(8) 0.01(8)
Net realized and unrealized gain (0.17) 2.81 0.92 0.11
----- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS (0.26) 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 (0.26) 1.85 0.90 0.11
----- ---- ---- ----
NET ASSET VALUE, END OF PERIOD $13.94 $14.20 $12.35 $11.45
====== ====== ====== ======
Total return(1) (1.90)%(3) 22.06% 8.36% 1.03%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,955 $1,773 $1,873 $713
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 4.54%(2) 3.44% 2.50% 2.50%(2)
Net investment income (1.25)%(2) (0.90) 0.44%(8) 0.50%(2)(8)
Portfolio turnover rate 2%(3) 42% 40% 64%(2)
</TABLE>
----------------------------------
(1) Maximum sales charge is not reflected in the 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.
Phoenix-Zweig Trust 59
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
PHOENIX-ZWEIG FOREIGN EQUITY FUND
<TABLE>
<CAPTION>
CLASS C
--------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED INCEPTION
6/30/00 DECEMBER 31, 11/24/97 TO
(UNAUDITED) 1999 1998 12/31/97
----------- ---- ---- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $14.15 $12.33 $11.45 $11.34
INCOME FROM INVESTMENT OPERATIONS(6)
Net investment income (0.09)(5) (0.12)(5) 0.05(7) 0.01(7)
Net realized and unrealized gain (0.17) 2.78 0.90 0.11
----- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS (0.26) 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 (0.26) 1.82 0.88 0.11
----- ---- ---- ----
NET ASSET VALUE, END OF PERIOD $13.89 $14.15 $12.33 $11.45
====== ====== ====== ======
Total return(1) (1.84)%(3) 21.85% 8.27% 1.03%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $3,084 $3,727 $3,384 $1,177
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 4.55%(2) 3.46% 2.50% 2.50%(2)
Net investment income (1.34)%(2) (0.94)% 0.44%(7) .50%(2)(7)
Portfolio turnover rate 2%(3) 42% 40% 64%(2)
</TABLE>
----------------------------------
(1) Maximum sales charge is not reflected in the 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) Computed using average shares outstanding.
(6) Distributions are made in accordance with the prospectus; however, class
level per share income from investment operations may vary from anticipated
results depending on the timing of share purchases and redemptions.
(7) Includes realized gains and losses on foreign currency transactions.
60 Phoenix-Zweig Trust
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
PHOENIX-ZWEIG GOVERNMENT CASH FUND
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------------------
SIX MONTHS
ENDED
6/30/00 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1999 1998 1997 1996 1995
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.03 0.04 0.05 0.05 0.05 0.05
---- ---- ---- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS 0.03 0.04 0.05 0.05 0.05 0.05
---- ---- ---- ---- ---- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.03) (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 $1.00
===== ===== ===== ===== ===== =====
Total return 2.65%(3) 4.52% 4.91% 4.97% 4.83% 5.08%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $3,705 $6,110 $8,290 $2,472 $3,360 $3,661
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 0.65%(2) 0.65% 0.65% 0.65% 0.65% 0.87%
Net investment income 5.46%(2) 4.41% 4.75% 4.85% 4.73% 4.97%
</TABLE>
PHOENIX-ZWEIG GOVERNMENT CASH FUND
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------
SIX MONTHS FROM
ENDED INCEPTION
6/30/00 YEAR ENDED DECEMBER 31, 4/8/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
----------- ---- ---- ---- --------
<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 0.02 0.04 0.04 0.04 0.03
---- ---- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS 0.02 0.04 0.04 0.04 0.03
---- ---- ---- ---- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.02) (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 $1.00
===== ===== ===== ===== =====
Total return(1) 2.30%(3) 3.80% 4.18% 4.24% 3.03%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $4,248 $4,650 $1,738 $336 $33
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 1.35%(2) 1.35% 1.35% 1.35% 1.35%(2)
Net investment income 4.69%(2) 3.80% 3.97% 4.15% 4.03%(2)
</TABLE>
----------------------------------
(1) Maximum sales charge is not reflected in the 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.
Phoenix-Zweig Trust 61
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
PHOENIX-ZWEIG GOVERNMENT CASH FUND
<TABLE>
<CAPTION>
CLASS C
------------------------------------------------------------------------------
SIX MONTHS
ENDED
6/30/00 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1999 1998 1997 1996 1995
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.03 0.04 0.05 0.05 0.05 0.05
---- ---- ---- ---- ---- ----
TOTAL INVESTMENT FROM OPERATIONS 0.03 0.04 0.05 0.05 0.05 0.05
---- ---- ---- ---- ---- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.03) (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 $1.00
===== ===== ===== ===== ===== =====
Total return(1) 2.65%(3) 4.52% 4.91% 4.97% 4.83% 5.08%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $3,562 $5,982 $6,624 $2,661 $4,535 $4,458
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 0.65%(2) 0.65% 0.65% 0.65% 0.65% 0.87%
Net investment income 5.37%(2) 4.43% 4.73% 4.85% 4.73% 4.97%
</TABLE>
PHOENIX-ZWEIG GOVERNMENT CASH FUND
<TABLE>
<CAPTION>
CLASS I
--------------------------------------------------------------
SIX MONTHS FROM
ENDED INCEPTION
6/30/00 YEAR ENDED DECEMBER 31, 11/1/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
----------- ---- ---- ---- --------
<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 0.03 0.05 0.05 0.05 0.01
---- ---- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS 0.03 0.05 0.05 0.05 0.01
---- ---- ---- ---- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.03) (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 $1.00
==== ==== ==== ==== ====
Total return(1) 2.80%(3) 4.83% 5.23% 5.28% 0.80%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $4,415 $2,146 $2,884 $100 $1,401
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 0.35%(2) 0.35% 0.35% 0.35% 0.35%(2)
Net investment income 5.74%(2) 4.73% 5.15% 5.15% 5.03%(2)
</TABLE>
----------------------------------
(1) Maximum sales charge is not reflected in the 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.
62 Phoenix-Zweig Trust
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
PHOENIX-ZWEIG GOVERNMENT FUND
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------------------
SIX MONTHS
ENDED
6/30/00 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1999 1998 1997 1996 1995
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.72 $10.44 $10.09 $9.81 $10.39 $9.63
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.25 0.46 0.53 0.52 0.53 0.52(1)
Net realized and unrealized gain
(loss) (0.04) (0.73) 0.35 0.28 (0.58) 0.77
----- ----- ---- ---- ----- ----
TOTAL FROM INVESTMENT OPERATIONS 0.21 (0.27) 0.88 0.80 (0.05) 1.29
---- ----- ---- ---- ----- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.22) (0.45) (0.53) (0.52) (0.53) (0.53)
----- ----- ----- ----- ----- -----
Change in net asset value (0.01) (0.72) 0.35 0.28 (0.58) 0.76
----- ----- ---- ---- ----- ----
NET ASSET VALUE, END OF PERIOD $9.71 $9.72 $10.44 $10.09 $9.81 $10.39
===== ===== ====== ====== ===== ======
Total return(2) 2.21%(4) (2.58)% 8.91% 8.42% (0.42)% 13.84%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $19,636 $21,922 $29,767 $28,062 $33,848 $42,207
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.67%(3) 1.35% 1.32% 1.36% 1.14%(3) 1.26%
Net investment income 5.10%(3) 4.67% 5.09% 5.26% 5.25% 5.22%
Portfolio turnover rate 101%(4) 183% 48% 128% 170% 195%
</TABLE>
PHOENIX-ZWEIG GOVERNMENT FUND
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------------------
SIX MONTHS FROM
ENDED INCEPTION
6/30/00 YEAR ENDED DECEMBER 31, 4/8/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
----------- ---- ---- ---- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.78 $10.52 $10.15 $9.86 $9.76
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.21 0.39 0.44 0.46 0.29
Net realized and unrealized gain (0.03) (0.74) 0.37 0.26 0.11
----- ----- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS 0.18 (0.35) 0.81 0.72 0.40
---- ----- ---- ---- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.19) (0.39) (0.44) (0.43) (0.30)
Change in net asset value (0.01) (0.74) 0.37 0.29 0.10
----- ----- ---- ---- ----
NET ASSET VALUE, END OF PERIOD $9.77 $9.78 $10.52 $10.15 $9.86
===== ===== ====== ====== =====
Total return(1) 1.88%(4) (3.23)% 8.20% 7.55% 4.16%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $1,733 $1,657 $2,199 $1,215 $513
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.37%(3) 2.06% 2.02% 2.06% 1.84%(2)(3)
Net investment income 4.39%(3) 3.97% 4.39% 4.56% 4.55%(3)
Portfolio turnover rate 101%(4) 183% 48% 128% 170%
</TABLE>
-----------------------------------
(1) Computed using average shares outstanding.
(2) Maximum sales charge is not reflected in the 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 1.36% 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.
Phoenix-Zweig Trust 63
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
PHOENIX-ZWEIG GOVERNMENT FUND
<TABLE>
<CAPTION>
CLASS C
----------------------------------------------------------------------------
SIX MONTHS
ENDED
6/30/00 YEAR ENDED DECEMBER 31,
(Unaudited) 1999 1998 1997 1996 1995
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.69 $10.42 $10.08 $9.81 $10.38 $9.62
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.23 0.42 0.47 0.48 0.49 0.48(1)
Net realized and unrealized gain
(loss) (0.03) (0.74) 0.36 0.27 (0.58) 0.76
----- ----- ---- ---- ----- ----
TOTAL FROM INVESTMENT OPERATIONS 0.20 (0.32) 0.83 0.75 (0.09) 1.24
---- ----- ---- ---- ----- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.20) (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 $9.69 $10.42 $10.08 $9.81 $10.38
===== ===== ====== ====== ===== ======
Total return(2) 2.07 (4) (3.09)% 8.46% 7.86% (0.82)% 13.27%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $5,453 $7,068 $11,859 $10,199 $14,330 $19,778
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.11%(3) 1.80% 1.77% 1.81% 1.59%(5) 1.71%
Net investment income 4.64%(3) 4.22% 4.64% 4.81% 4.80% 4.77%
Portfolio turnover rate 101%(4) 183% 48% 128% 170% 195%
</TABLE>
PHOENIX-ZWEIG GOVERNMENT FUND
<TABLE>
<CAPTION>
CLASS I
--------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED INCEPTION
6/30/00 DECEMBER 31, 7/14/97 TO
(UNAUDITED) 1999 1998 12/31/97
--------- ---- ---- ---------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $9.74 $10.48 $10.11 $9.88
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.26 0.49 0.55 0.26
Net realized and unrealized gain (0.03) (0.74) 0.37 0.23
----- ----- ---- ----
TOTAL FROM INVESTMENT OPERATIONS 0.23 (0.25) 0.92 0.49
---- ----- ---- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.24) (0.49) (0.55) (0.26)
Change in net asset value (0.01) (0.74) 0.37 0.23
----- ----- ---- ----
NET ASSET VALUE, END OF PERIOD $9.73 $9.74 $10.48 $10.11
===== ===== ====== ======
Total return(1) 2.39%(4) (2.31)% 9.33% 5.01%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $3,410 $3,330 $3,088 $1,050
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.38%(3) 1.06% 1.02% 1.06%(3)
Net investment income 5.40%(3) 4.98% 5.39% 5.56%(3)
Portfolio turnover rate 101%(4) 183% 48% 128%
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charge is not reflected in the 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.
64 Phoenix-Zweig Trust
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
PHOENIX-ZWEIG GROWTH & INCOME FUND
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------
SIX MONTHS FROM
ENDED INCEPTION
6/30/00 YEAR ENDED DECEMBER 31, 11/26/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
----------- ---- ---- ---- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.13 $13.40 $13.73 $11.37 $11.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.08 0.17(6) 0.11 0.24 0.01
Net realized and unrealized gain 0.98 (0.08) (0.33) 2.36 0.03
---- ----- ----- ---- ----
TOTAL FROM INVESTMENT OPERATIONS 1.06 0.09 (0.22) 2.60 0.04
---- ---- ----- ---- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.05) (0.21) (0.11) (0.24) (0.01)
Dividends from net realized gains -- (1.15) -- -- --
TOTAL DISTRIBUTIONS (0.05) (1.36) (0.11) (0.24) (0.01)
----- ----- ----- ----- -----
Change in net asset value 1.01 (1.27) (0.33) 2.36 0.03
---- ----- ----- ---- ----
NET ASSET VALUE, END OF PERIOD $13.14 $12.13 $13.40 $13.73 $11.37
====== ====== ====== ====== ======
Total return(1) 8.77%(3) 1.09% (1.61)% 23.12% 0.39%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $2,572 $3,393 $8,172 $6,836 $2,508
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.16%(2) 1.80% 1.56%(4) 1.30%(4) 1.30%(2)(3)
Net investment income 1.09%(2) 1.28% 0.82% 2.26% 1.47%(2)
Portfolio turnover rate 145%(3) 193% 152% 120% 2%
</TABLE>
PHOENIX-ZWEIG GROWTH & INCOME FUND
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------
SIX MONTHS FROM
ENDED INCEPTION
6/30/00 YEAR ENDED DECEMBER 31, 11/26/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
---------- ---- ---- ---- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.14 $13.39 $13.73 $11.37 $11.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.02 0.08(6) 0.02 0.16 0.01
Net realized and unrealized gain 1.00 (0.08) (0.34) 2.36 0.03
---- ---- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS 1.02 0.00 (0.32) 2.52 0.04
---- ---- ---- ---- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.02) (0.10) (0.02) (0.16) (0.01)
Dividends from net realized gains -- (1.15) -- -- --
---- ---- ---- ---- ----
TOTAL DISTRIBUTIONS (0.02) (1.25) (0.02) (0.16) (0.01)
---- ---- ---- ---- ----
Change in net asset value 1.00 (1.25) (0.34) 2.36 0.03
---- ---- ---- ---- ----
NET ASSET VALUE, END OF PERIOD $13.14 $12.14 $13.39 $13.73 $11.37
===== ===== ===== ===== =====
Total return(1) 8.40%(3) 0.42% (2.33)% 22.29% 0.33%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $8,543 $9,684 $16,416 $11,920 $2,693
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.89%(2) 2.51% 2.26%(5) 2.00%(5) 2.00%(2)(5)
Net investment income 0.37%(2) 0.64% 0.12% 1.56% 0.77%(2)
Portfolio turnover rate 145%(3) 193% 152% 120% 2%
</TABLE>
----------------------------------
(1) Maximum sales charge is not reflected in the 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.
Phoenix-Zweig Trust 65
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
PHOENIX-ZWEIG GROWTH & INCOME FUND
<TABLE>
<CAPTION>
CLASS C
--------------------------------------------------------------
SIX MONTHS FROM
ENDED INCEPTION
6/30/00 YEAR ENDED DECEMBER 31, 11/26/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
----------- ---- ---- ---- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.15 $13.37 $13.71 $11.38 $11.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.03 0.08(6) 0.02 0.17 0.01
Net realized and unrealized gain 1.00 (0.07) (0.34) 2.33 0.04
---- ----- ----- ---- ----
TOTAL FROM INVESTMENT OPERATIONS 1.03 0.01 (0.32) 2.50 0.05
---- ---- ----- ---- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.02) (0.08) (0.02) (0.17) (0.01)
Dividends from net realized gains -- (1.15) -- -- --
---- ---- ----- ---- ----
TOTAL DISTRIBUTIONS (0.02) (1.23) (0.02) (0.17) (0.01)
---- ----- ----- ----- -----
Change in net asset value 1.01 (1.22) (0.34) 2.33 0.04
---- ----- ----- ---- ----
NET ASSET VALUE, END OF PERIOD $13.16 $12.15 $13.37 $13.71 $11.38
====== ====== ====== ====== ======
Total return(1) 8.36%(3) 0.45% (2.34)% 22.15% 0.42%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $4,500 $5,507 $14,364 $13,525 $4,509
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.87%(2) 2.50% 2.26%(4) 2.00%(4) 2.00%(2)(4)
Net investment income 0.38%(2) 0.60% 0.12% 1.56% 0.77%(2)
Portfolio turnover rate 145%(3) 193% 152% 120% 2%
</TABLE>
PHOENIX-ZWEIG GROWTH & INCOME FUND
<TABLE>
<CAPTION>
CLASS I
--------------------------------------------------------------
SIX MONTHS FROM
ENDED INCEPTION
6/30/00 YEAR ENDED DECEMBER 31, 11/26/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
----------- ---- ---- ---- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.18 $13.44 $13.77 $11.37 $11.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.09 0.23(6) 0.15 0.24 0.02
Net realized and unrealized gain 0.99 (0.09) (0.33) 2.40 0.03
---- ----- ----- ---- ----
TOTAL FROM INVESTMENT OPERATIONS 1.08 0.14 (0.18) 2.64 0.05
---- ---- ----- ---- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.07) (0.25) (0.15) (0.24) (0.02)
Dividends from net realized gains -- (1.15) -- -- --
---- ---- ----- ---- ----
TOTAL DISTRIBUTION (0.07) (1.40) (0.15) (0.24) (0.02)
---- ---- ----- ---- ----
Change in net asset value 1.01 (1.26) (0.33) 2.40 0.03
---- ----- ----- ---- ----
NET ASSET VALUE, END OF PERIOD $13.19 $12.18 $13.44 $13.77 $11.37
====== ====== ====== ====== ======
Total return(1) 8.87%(3) 1.46% (1.31)% 23.42% 0.41%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,938 $1,848 $1,664 $1,686 $101
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.90%(2) 1.54% 1.26%(5) 1.00%(5) 1.00%(2)(5)
Net investment income 1.36%(2) 1.72% 1.12% 2.56% 1.77%(2)
Portfolio turnover rate 145%(3) 193% 152% 120% 2%
</TABLE>
----------------------------------
(1) Maximum sales charge is not reflected in the 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 period 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 period ended December 31, 1998, 1997 and 1996, respectively.
(6) Computed using average shares outstanding.
66 Phoenix-Zweig Trust
<PAGE>
PHOENIX-ZWEIG MANAGED ASSETS
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED
6/30/00
(UNAUDITED) 1999 1998 1997 1996 1995
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.04 $14.18 $12.72 $12.75 $12.48 $11.76
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.19(4) 0.31(4) 0.38 0.13 0.35 0.47
Net realized and unrealized gain
(loss) (0.10) 0.91 1.50 1.83 0.86 1.40
----- ---- ---- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS 0.09 1.22 1.88 1.96 1.21 1.87
---- ---- ---- ---- ---- ----
LESS DISTRIBUTION
Dividends from net investment income (0.14) (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 (0.14) (1.36) (0.42) (1.99) (0.94) (1.15)
----- ----- ----- ----- ----- -----
Change in net asset value (0.05) (0.14) 1.46 (0.03) 0.27 0.72
----- ----- ---- ----- ---- ----
NET ASSET VALUE, END OF PERIOD $13.99 $14.04 $14.18 $12.72 $12.75 $12.48
====== ====== ====== ====== ====== ======
Total return(1) 0.67%(3) 8.81% 14.87% 15.47% 9.80% 16.26%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $87,620 $103,267 $122,085 $110,908 $114,837 $141,110
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.53%(2) 1.51% 1.51% 1.59% 1.64% 1.59%
Net investment income 2.83%(2) 2.13% 2.77%(5) 2.40%(5) 2.64%(5) 3.69%(5)
Portfolio turnover rate 56%(3) 50% 62% 168% 187% 239%
</TABLE>
PHOENIX-ZWEIG MANAGED ASSETS
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------
SIX MONTHS FROM
ENDED INCEPTION
6/30/00 YEAR ENDED DECEMBER 31, 4/8/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
----------- ---- ---- ---- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.15 $14.28 $12.79 $12.90 $12.43
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.15(4) 0.21(4) 0.26 0.04 0.13
Net realized and unrealized gain
(loss) (0.11) 0.91 1.53 1.84 1.00
----- ---- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS 0.04 1.12 1.79 1.88 1.13
---- ---- ---- ---- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.11) (0.14) (0.26) -- (0.17)
Dividends from net realized gains -- (1.11) (0.04) (1.99) (0.49)
----- ---- ---- ---- ----
TOTAL DISTRIBUTIONS (0.11) (1.25) (0.30) (1.99) (0.66)
----- ----- ----- ----- -----
Change in net asset value (0.07) (0.13) 1.49 (0.11) 0.47
----- ----- ---- ----- ----
NET ASSET VALUE, END OF PERIOD $14.08 $14.15 $14.28 $12.79 $12.90
====== ====== ====== ====== ======
Total return(1) 0.26%(3) 8.03% 14.06% 14.67% 9.11%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $35,078 $39,910 $33,172 $18,117 $6,339
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.23%(2) 2.21% 2.21% 2.29% 2.34%(2)
Net investment income (loss) 2.13%(2) 1.44% 2.07%(5) 1.70%(5) 1.94%(2)(5)
Portfolio turnover rate 56%(3) 50% 62% 168% 187%
</TABLE>
----------------------------------
(1) Maximum sales charge is not reflected in the total return calculation.
(2) Annualized.
(3) Not annualized.
(4) Computed using average shares outstanding.
(5) Includes realized gains and losses on foreign currency transactions.
Phoenix-Zweig Trust 67
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
PHOENIX-ZWEIG MANAGED ASSETS
<TABLE>
<CAPTION>
CLASS C
------------------------------------------------------------------------------
SIX MONTHS
ENDED
6/30/00 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1999 1998 1997 1996 1995
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.92 $14.07 $12.63 $12.76 $12.49 $11.73
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.15(4) 0.21(4) 0.29(5) 0.04(5) 0.27(5) 0.38(5)
Net realized and unrealized gain
(loss) (0.10) 0.89 1.48 1.82 0.85 1.40
----- ---- ---- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS 0.05 1.10 1.77 1.86 1.12 1.78
---- ---- ---- ---- ---- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.11) (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 (0.11) (1.25) (0.33) (1.99) (0.85) (1.02)
----- ----- ----- ----- ----- -----
Change in net asset value (0.06) (0.15) 1.44 (0.13) 0.27 0.76
----- ----- ---- ----- ---- ----
NET ASSET VALUE, END OF PERIOD $13.86 $13.92 $14.07 $12.63 $12.76 $12.49
====== ====== ====== ====== ====== ======
Total return 0.34%(3) 8.01% 14.03% 14.67% 9.03% 15.44%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $317,921 $379,445 $429,655 $407,625 $426,194 $527,432
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.23%(2) 2.21% 2.21% 2.29% 2.34% 2.29%
Net investment income 2.13%(2) 1.43% 2.07%(5) 1.70%(5) 1.94%(5) 2.99%(5)
Portfolio turnover rate 56%(3) 50% 62% 168% 187% 239%
</TABLE>
PHOENIX-ZWEIG MANAGED ASSETS
<TABLE>
<CAPTION>
CLASS I
--------------------------------------------------------------
SIX MONTHS FROM
ENDED INCEPTION
6/30/00 YEAR ENDED DECEMBER 31, 11/1/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
----------- ---- ---- ---- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.18 $14.31 $13.05 $12.99 $13.02
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.23(4) 0.36(4) 0.56(5) 0.09(5) 0.05(5)
Net realized and unrealized gain
(loss) (0.11) 0.91 1.41 1.96 0.45
----- ---- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS 0.12 1.27 1.97 2.05 0.50
---- ---- ---- ---- ----
LESS DISTRIBUTION
Dividends from net investment income (0.16) (0.29) (0.67) -- (0.04)
Dividends from net realized gains -- (1.11) (0.04) (1.99) (0.49)
----- ---- ---- ---- ----
TOTAL DISTRIBUTIONS (0.16) (1.40) (0.71) (1.99) (0.53)
----- ----- ----- ----- -----
Change in net asset value (0.04) (0.13) 1.26 0.06 (0.03)
----- ----- ---- ---- -----
NET ASSET VALUE, END OF PERIOD $14.14 $14.18 $14.31 $13.05 $12.99
====== ====== ====== ====== ======
Total return(1) 0.85%(3) 9.08% 15.16% 15.88% 3.83%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $2,862 $2,214 $1,848 $2,645 $2,893
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.23%(2) 1.21% 1.21% 1.29% 1.34%(2)
Net investment income (loss) 3.18%(2) 2.43% 3.07%(5) 2.70%(5) 2.94%(2)(5)
Portfolio turnover rate 56%(3) 50% 62% 168% 187%
</TABLE>
----------------------------------
(1) Maximum sales charge is not reflected in the total return calculation.
(2) Annualized.
(3) Not annualized.
(4) Computed using average shares outstanding.
(5) Includes realized gains and losses on foreign currency transactions.
68 Phoenix-Zweig Trust
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
PHOENIX-ZWEIG STRATEGY FUND
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------------------
SIX MONTHS
ENDED
6/30/00 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1999 1998 1997 1996 1995
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.24 $14.80 $15.77 $15.01 $14.51 $12.36
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.10(4) 0.22(4) 0.17 0.20 0.20 0.27
Net realized and unrealized gain
(loss) (0.17) 0.07 (0.48) 2.49 1.68 2.80
----- ---- ----- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS (0.07) 0.29 (0.31) 2.69 1.88 3.07
----- ---- ----- ---- ---- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.14) (0.28) (0.18) (0.19) (0.20) (0.37)
Dividends from net realized gains (0.06) (3.57) (0.48) (1.74) (1.18) (0.55)
----- ----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS (0.20) (3.85) (0.66) (1.93) (1.38) (0.92)
----- ----- ----- ----- ----- -----
Change in net asset value (0.27) (3.56) (0.97) 0.76 0.50 2.15
----- ----- ----- ---- ---- ----
NET ASSET VALUE, END OF PERIOD $10.97 $11.24 $14.80 $15.77 $15.01 $14.51
====== ====== ====== ====== ====== ======
Total return(1) (0.79)%(3) 2.63% (1.88)% 18.07% 13.00% 25.12%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $162,122 $223,269 $409,065 $565,721 $581,149 $558,286
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.42%(2) 1.28% 1.24% 1.24% 1.28% 1.27%
Net investment income 1.89%(2) 1.54% 0.97% 1.20% 1.27% 1.92%
Portfolio turnover rate 105%(3) 141% 116% 126% 181% 95%
</TABLE>
PHOENIX-ZWEIG STRATEGY FUND
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------
SIX MONTHS FROM
ENDED INCEPTION
6/30/00 YEAR ENDED DECEMBER 31, 4/8/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
----------- ---- ---- ---- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.34 $14.90 $15.86 $15.07 $15.12
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.07(4) 0.12(4) 0.05 0.07 0.06
Net realized and unrealized gain
(loss) (0.19) 0.07 (0.48) 2.53 1.13
----- ---- ----- ---- ----
TOTAL FROM INVESTMENT OPERATIONS (0.12) 0.19 (0.43) 2.60 1.19
----- ---- ----- ---- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.10) (0.18) (0.05) (0.07) (0.06)
Dividends from net realized gains (0.06) (3.57) (0.48) (1.74) (1.18)
----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS (0.16) (3.75) (0.53) (1.81) (1.24)
----- ----- ----- ----- -----
Change in net asset value (0.28) (3.56) (0.96) 0.79 (0.05)
----- ----- ----- ---- -----
NET ASSET VALUE, END OF PERIOD $11.06 $11.34 $14.90 $15.86 $15.07
====== ====== ====== ====== ======
Total return(1) (1.16)%(3) 1.91% (2.61)% 17.33% 7.88%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $33,207 $47,557 $82,531 $76,820 $42,317
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.11%(2) 1.98% 1.94% 1.94% 1.98%(2)
Net investment income (loss) 1.19%(2) 0.84% 0.27% 0.50% 0.57%(2)
Portfolio turnover rate 105%(3) 141% 116% 126% 181%
</TABLE>
----------------------------------
(1) Maximum sales charge is not reflected in the total return calculation.
(2) Annualized.
(3) Not annualized.
(4) Computed using average shares outstanding.
Phoenix-Zweig Trust 69
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
PHOENIX-ZWEIG STRATEGY FUND
<TABLE>
<CAPTION>
CLASS C
------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED
6/30/00
(UNAUDITED) 1999 1998 1997 1996 1995
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.31 $14.86 $15.81 $15.04 $14.56 $12.35
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.07(4) 0.12(4) 0.05 0.07 0.11 0.16
Net realized and unrealized gain
(loss) (0.19) 0.07 (0.48) 2.52 1.66 2.82
----- ---- ----- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS (0.12) 0.19 (0.43) 2.59 1.77 2.98
----- ---- ----- ---- ---- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.10) (0.17) (0.04) (0.08) (0.11) (0.22)
Dividends from net realized gains (0.06) (3.57) (0.48) (1.74) (1.18) (0.55)
----- ----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS (0.16) (3.74) (0.52) (1.82) (1.29) (0.77)
----- ----- ----- ----- ----- -----
Change in net asset value (0.28) (3.55) (0.95) 0.77 0.48 2.21
----- ----- ----- ---- ---- ----
NET ASSET VALUE, END OF PERIOD $11.03 $11.31 $14.86 $15.81 $15.04 $14.56
====== ====== ====== ====== ====== ======
Total return(1) (1.17)%(3) 1.94% (2.64)% 17.30% 12.19% 24.26%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $122,633 $184,924 $423,791 $591,512 $621,334 $530,300
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.11%(2) 1.98% 1.94% 1.94% 1.98% 1.97%
Net investment income 1.19%(2) 0.81% 0.27% 0.50% 0.57% 1.22%
Portfolio turnover rate 105%(3) 141% 116% 126% 181% 95%
</TABLE>
PHOENIX-ZWEIG STRATEGY FUND
<TABLE>
<CAPTION>
CLASS I
--------------------------------------------------------------
SIX MONTHS FROM
ENDED INCEPTION
6/30/00 YEAR ENDED DECEMBER 31, 11/1/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
----------- ---- ---- ---- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.40 $14.94 $15.87 $15.07 $15.42
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.12(4) 0.28(4) 0.17 0.23 0.04
Net realized and unrealized gain
(loss) (0.18) 0.06 (0.45) 2.54 0.83
----- ---- ----- ---- ----
TOTAL FROM INVESTMENT OPERATIONS (0.06) 0.34 (0.28) 2.77 0.87
----- ---- ----- ---- ----
LESS DISTRIBUTIONS
Dividends from net investment income (0.15) (0.31) (0.17) (0.23) (0.04)
Dividends from net realized gains (0.06) (3.57) (0.48) (1.74) (1.18)
----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS (0.21) (3.88) (0.65) (1.97) (1.22)
----- ----- ----- ----- -----
Change in net asset value (0.27) (3.54) (0.93) 0.80 (0.35)
----- ----- ----- ---- -----
NET ASSET VALUE, END OF PERIOD $11.13 $11.40 $14.94 $15.87 $15.07
====== ====== ====== ====== ======
Total return(1) (0.66)%(3) 2.96% (1.66)% 18.52% 5.68%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,572 $1,581 $1,407 $1,070 $903
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.13%(2) 0.96% 0.94% 0.94% 0.98%(2)
Net investment income (loss) 2.19%(2) 1.92% 1.27% 1.50% 1.57%(2)
Portfolio turnover rate 105%(3) 141% 116% 126% 181%
</TABLE>
----------------------------------
(1) Maximum sales charge is not reflected in the total return calculation.
(2) Annualized.
(3) Not annualized.
(4) Computed using average shares outstanding.
70 Phoenix-Zweig Trust
<PAGE>
ADDITIONAL INFORMATION
--------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
The Trust has filed a Statement of Additional Information, dated December 15,
2000, with the Securities and Exchange Commission. The Statement contains more
detailed information about the funds. It is incorporated into this prospectus by
reference and is legally part of the prospectus. You may obtain a free copy of
the Statement:
o by writing to Phoenix Equity Planning Corporation, 56 Prospect
Street, P.O. Box 150480, Hartford, Connecticut 06115-0480, or
o by calling (800) 243-4361.
You may also obtain information about the Trust from the Securities and Exchange
Commission:
o through its internet site (http://www.sec.gov),
o by visiting its Public Reference Room in Washington, DC,
o by writing to its Public Reference Section, Washington, DC 20549-
0102 (a fee may be charged), or
o by electronic request at [email protected] (a fee may be charged).
Information about the operation of the Public Reference Room may be obtained by
calling 1-202-942-8090.
SHAREHOLDER REPORTS
The Trust semiannually mails to its shareholders detailed reports containing
information about the funds' investments. The Trust's Annual Report contains a
detailed discussion of the market conditions and investment strategies that
significantly affected the funds' performance from January 1 through December
31. You may request a free copy of the Trust's Annual and Semiannual Reports:
o by writing to Phoenix Equity Planning Corporation, 56 Prospect
Street, P.O. Box 150480, Hartford, Connecticut 06115-0480, or
o by calling (800) 243-4361.
CUSTOMER SERVICE: (800) 243-1574
MARKETING: (800) 243-4361
TELEPHONE ORDERS: (800) 367-5877
TELECOMMUNICATION DEVICE (TTY): (800) 243-1926
<TABLE>
<CAPTION>
<S> <C>
SEC File Nos. 2-93538 and 811-04116 [Recycle Logo] Printed on recycled paper using soybean ink
</TABLE>
Phoenix-Zweig Trust 71
<PAGE>
PHOENIX EQUITY PLANNING CORPORATION
PO Box 150480
Hartford CT 06115-0480
[LOGO] PHOENIX
INVESTMENT PARTNERS
For more information about
Phoenix mutual funds, please call
your financial representative or
contact us at 1-800-243-4361 or
www.phoenixinvestments.com
PXP 1197 (12/00)
<PAGE>
[Version A]
PHOENIX-ZWEIG TRUST
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
PHOENIX-ZWEIG STRATEGY FUND
900 Third Avenue, 31st Floor
New York, New York 10022
STATEMENT OF ADDITIONAL INFORMATION
December 15, 2000
This Statement of Additional Information is not a prospectus, but expands
upon and supplements the information contained in the current Prospectus of
Phoenix-Zweig Trust (the "Trust"), dated December 15, 2000, and should be read
in conjunction with it. The Trust's Prospectus may be obtained by calling (800)
243-1574 or by writing to Phoenix Equity Planning Corporation at 56 Prospect
Street, P.O. Box 150480, Hartford, CT 06115-0480.
TABLE OF CONTENTS
PAGE
The Trust ......................................................... 1
Investment Restrictions ........................................... 1
Investment Techniques & Risks ..................................... 2
Performance Information............................................ 8
Performance Comparisons ........................................... 10
Portfolio Turnover ................................................ 11
Portfolio Transactions and Brokerage............................... 11
Services of the Advisers .......................................... 12
Net Asset Value ................................................... 14
How to Buy Shares ................................................. 15
Alternative Purchase Arrangements ................................. 15
Investor Account Services ......................................... 18
How to Redeem Shares .............................................. 20
Tax Sheltered Retirement Plans .................................... 21
Dividends, Distributions and Taxes ................................ 22
The Distributor ................................................... 23
Distribution Plans................................................. 25
Management of the Trust............................................ 26
Additional Information ............................................ 33
Appendix........................................................... 34
Customer Service: (800) 243-1574
Marketing: (800) 243-4361
Telephone Orders: (800) 367-5877
Telecommunication Device (TTY): (800) 243-1926
PXP1202 (12/00)
<PAGE>
THE TRUST
Phoenix-Zweig Trust (the "Trust") is a diversified, open-end management
investment company which was organized in 1984 as a Massachusetts business
trust, then reorganized as a Delaware business trust in 1996.
The Trust's Prospectus describes the investment objectives of the
Phoenix-Zweig Appreciation Fund (the "Appreciation Fund"), the Phoenix-Zweig
Foreign Equity Fund (the "Foreign Equity Fund"), the Phoenix-Zweig Government
Cash Fund (the "Government Cash Fund"), the Phoenix-Zweig Government Fund (the
"Government Fund"), the Phoenix-Zweig Growth & Income Fund (the "Growth & Income
Fund"), Phoenix-Zweig Managed Assets ("Managed Assets"), and the Phoenix-Zweig
Strategy Fund (the "Strategy Fund") (each, a "Fund" and, together, the "Funds"),
the seven Funds currently offered by the Trust, and the strategies each Fund
will employ in seeking to achieve its investment objective. The Funds'
investment objectives are fundamental policies of the Funds and may not be
changed without the vote of a majority of the outstanding voting securities of
the Funds. The following discussion describes the Fund's investment policies and
techniques and supplements the disclosure in the Prospectus.
INVESTMENT RESTRICTIONS
The following investment restrictions have been adopted by the Trust with
respect to the Fund. Except as otherwise stated, these investment restrictions
are "fundamental" policies. A "fundamental" policy is defined in the 1940 Act to
mean that the restriction cannot be changed without the vote of a "majority of
the outstanding voting securities" of the Fund. A majority of the outstanding
voting securities is defined in the 1940 Act as the lesser of (a) 67% or more of
the voting securities present at a meeting if the holders of more than 50% of
the outstanding voting securities are present or represented by proxy, or (b)
more than 50% of the outstanding voting securities. However, these policies may
be modified by the Trustees, in their discretion, without shareholder approval,
to the extent necessary to facilitate the implementation of a master-feeder
structure for any or all of the Funds (i.e., a structure under which a
particular Fund acts as a feeder and invests all of its assets in a single
pooled master fund with substantially the same investment objectives and
policies).
The Fund may not:
(1) With respect to 75% of its total assets, purchase securities of an issuer
(other than the U.S. Government, its agencies, instrumentalities or authorities
or repurchase agreements collateralized by U.S. Government securities and other
investment companies), if: (a) such purchase would, at the time, cause more than
5% of the Fund's total assets taken at market value to be invested in the
securities of such issuer; or (b) such purchase would, at the time, result in
more than 10% of the outstanding voting securities of such issuer being held by
the Fund.
(2) Purchase securities if, after giving effect to the purchase, more than
25% of its total assets would be invested in the securities of one or more
issuers conducting their principal business activities in the same industry
(excluding the U.S. Government, its agencies or instrumentalities), except that
the Government Cash Fund may invest more than 25% of its assets in instruments
issued by domestic banks.
(3) Borrow money, except (i) in amounts not to exceed one-third of the value
of the Fund's total assets (including the amount borrowed) from banks, and (ii)
up to an additional 5% of its total assets from banks or other lenders for
temporary purposes. For purposes of this restriction, (a) investment techniques
such as margin purchases, short sales, forward commitments, and roll
transactions, (b) investments in instruments such as futures contracts, swaps,
and options and (c) short-term credits extended in connection with trade
clearance and settlement, shall not constitute borrowing.
(4) Issue "senior securities" in contravention of the 1940 Act. Activities
permitted by SEC exemptive orders or staff interpretations shall not be deemed
to be prohibited by this restriction.
(5) Underwrite the securities issued by other persons, except to the extent
that, in connection with the disposition of portfolio securities, the Fund may
be deemed to be an underwriter under applicable law.
(6) Purchase or sell real estate, except that the Fund may (i) acquire or
lease office space for its own use, (ii) invest in securities of issuers that
invest in real estate or interests therein, (iii) invest in mortgage-related
securities and other securities that are secured by real estate or interests
therein, (iv) hold and sell real estate acquired by the Fund as a result of the
ownership of securities.
(7) Purchase or sell commodities or commodity contracts, except the Fund may
purchase and sell derivatives (including, but not limited to, options, futures
contracts and options on futures contracts) whose value is tied to the value of
a financial index or a financial instrument or other asset (including, but not
limited to, securities indexes, interest rates, securities, currencies and
physical commodities).
(8) Make loans, except that the Fund may (i) lend portfolio securities, (ii)
enter into repurchase agreements, (iii) purchase all or a portion of an issue of
debt securities, bank loan participation interests, bank certificates of
deposit, bankers' acceptances, debentures or other securities, whether or not
the purchase is made upon the original issuance of the securities and (iv)
participate in an interfund lending program with other registered investment
companies.
1
<PAGE>
If any percentage restriction described above for the Fund is adhered to at
the time of investment, a subsequent increase or decrease in the percentage
resulting from a change in the value of the Fund's assets will not constitute a
violation of the restriction.
INVESTMENT TECHNIQUES AND RISKS
The investment objective of each Fund, except Managed Assets, is deemed to be
a fundamental policy and may not be changed without the approval of the
shareholders of that Fund. Investment restrictions described in this Statement
of Additional Information are fundamental policies of the Trust and may not be
changed as to any Fund without the approval of such Fund's shareholders.
STRATEGY FUND, APPRECIATION FUND AND GROWTH & INCOME FUND
The portfolio manager of the Strategy, Appreciation and Growth & Income Funds
uses proprietary computer-driven models developed by Dr. Zweig and his
associates to choose stocks for those funds. The models evaluate and rank 3,000
stocks based primarily on earnings momentum, relative valuation, changes in
analysts' earnings estimates, earnings growth, price momentum, cash flow trend,
payout ratio trend and other market measurements. The stock selection models may
evolve or be replaced by other techniques intended to select stocks with the
potential for growth. We will notify shareholders of any material change to the
stock selection models.
MANAGED ASSETS
Each foreign country in which Managed Assets intends to invest has a currency
model, as well as stock and bond models similar to those used for determining
the domestic asset allocation strategy. The Subadviser will normally allocate
the Fund's assets within the following parameters: 0-60% in stocks, 0-60% in
bonds and 0-100% in short-term debt instruments. A neutral mix will consist of
35% stocks, 35% bonds and 30% cash equivalents. This will occur when the
research indicates that conditions do not favor one asset class over another.
The Fund may use futures, forward currency contracts and options to increase or
decrease its exposure to changing securities prices, interest rates or currency
exchange rates.
FOREIGN EQUITY FUND
The level of stocks and money market instruments, as well as the total level
of investment in any particular country, will vary over time depending on the
level of risk the Subadviser's models determine. As a model points to increasing
levels of market risk in a particular country, the Fund will reduce its exposure
to that country by selling stocks, by hedging market exposure with foreign stock
index futures or options or by selling short.
In selecting stocks, our models rank industry groups when available. From the
higher ranked industry groups, we select stocks by evaluating and ranking them
based on technical and fundamental factors. Additionally, we may invest in
investment vehicles or groups of foreign stocks that, in the aggregate, are
expected to perform similarly to a particular major foreign stock market index
or foreign stock industry group, and in investment companies that invest in the
securities of a particular country, commonly referred to as "Country Funds,"
that invest in the securities of a particular country.
The Subadviser's currency model for each country provides a disciplined
approach to managing currency risk. When the model indicates a strong likelihood
that the foreign currency is going to increase in value against the U.S. dollar,
the Fund will not hedge its exposure to the foreign currency. Otherwise, it will
hedge its entire position using currency exchange contracts. In those countries
where there is no mechanism to hedge against currency fluctuations, we will only
invest in such countries when our models are bullish on both the equity market
and the foreign currency. Some of the indicators in the currency model include
the relative trend of real and nominal short-term interest rates, the movement
of the trade-weighted foreign currency, and the momentum of the foreign currency
against the U.S. dollar.
GOVERNMENT FUND
The Government Fund seeks a high total return from current income and capital
appreciation consistent with preservation of capital over the long term by
investing primarily in U.S. Government and agency securities, including
Government National Mortgage Association ("GNMA") mortgage-backed certificates
and repurchase agreements collateralized by such securities. THE GOVERNMENT FUND
MAY NOT INVEST IN STOCKS.
Not all U.S. Government securities are backed by the full faith and credit of
the United States. Some are supported only by the credit of the agency or
instrumentality. Agencies and instrumentalities include: Bank for Cooperatives,
Export-Import Bank of the U.S., Farmers Home Administration, Federal Financing
Bank, Federal Home Loan Banks, Federal Home Loan Mortgage Corp., Federal Housing
Administration, Federal Intermediate Credit Banks, Federal Land Banks, Federal
National Mortgage Association, Government National Mortgage Association (GNMA),
Resolution Funding Corp., Student Loan Marketing Association, Tennessee Valley
Authority and the U.S. Postal Service.
It is the Government Fund's policy that at least 65% of its total assets will
be invested in U.S. Government securities (including GNMA certificates), except
during times when the Subadviser believes that adoption of a temporary defensive
position is desirable. For temporary defensive purposes, the Fund may hold cash
or invest in money market instruments without limit.
2
<PAGE>
Investments for the Government Fund are chosen primarily by utilizing a model
that incorporates various indicators such as: momentum of bond prices,
short-term interest rate trends, inflation indicators, general economic and
liquidity indicators, and other market indicators and statistics.
The Fund may write covered call options and secured put options, and purchase
put options on U.S. Government securities which are traded on an exchange or
over-the-counter. The Fund also may purchase and sell interest rate futures
contracts and purchase and write put and call options on such futures contracts
as a means of hedging against changes in interest rates.
GOVERNMENT CASH FUND
The Government Cash Fund may invest in U.S. Treasury issues, such as bills,
certificates of indebtedness, notes and bonds, and issues of U.S. Government
agencies and instrumentalities which are established under the authority of an
act of Congress, such as the Bank for Cooperatives, Export-Import Bank of the
U.S., Farmers Home Administration, Federal Financing Bank, Federal Home Loan
Banks, Federal Home Loan Mortgage Corp., Federal Housing Administration, Federal
Intermediate Credit Banks, Federal Land Banks, Federal National Mortgage
Association, Government National Mortgage Association (GNMA), Resolution Funding
Corp., Student Loan Marketing Association, Tennessee Valley Authority and the
U.S. Postal Service. Some of these securities, such as Federal Housing
Administration debenture obligations, are supported by the full faith and credit
of the U.S. Treasury; others, such as obligations of Federal Home Loan Banks,
are supported by the right of the issuer to borrow from the U.S. Treasury;
others, such as those of the Federal National Mortgage Association, are
supported by the discretionary authority of the U.S. Government to purchase the
agency's obligations; and still others, such as those of the Student Loan
Marketing Association, are supported only by the credit of the instrumentality.
The Fund will not invest in obligations of the International Bank for
Reconstruction and Development (the World Bank), the Asian Development Bank, or
the Inter-American Development Bank, or in FHA or VA pooled mortgages.
FOREIGN SECURITIES
A Fund may invest in securities of foreign issuers, including equities and
non-U.S. dollar-denominated money market securities, and sponsored and
unsponsored ADRs, ADSs, EDRs, EDSs, GDRs, and GDSs. Shareholders should consider
carefully the substantial risks involved in investing in securities issued by
companies and governments of foreign nations which are in addition to the usual
risks inherent in domestic investments.
Although the Trust intends to invest only in nations that the Manager
considers to have relatively stable and friendly governments, there is the
possibility of expropriation, nationalization, repatriation or confiscatory
taxation, taxation of income earned in a foreign country and other foreign
taxes, foreign exchange controls (which may include suspension of the ability to
transfer currency from a given country), default in foreign government
securities, political or social instability or diplomatic developments which
could affect investments in securities of issuers in those nations. In addition,
in many countries there is less publicly available information about issuers
than is available for U.S. companies. For example, ownership of unsponsored ADRs
may not entitle the owner to financial or other reports from the issuer to which
it might otherwise be entitled as the owner of a sponsored ADR. Moreover,
foreign companies are not generally subject to uniform accounting, auditing and
financial reporting standards, and auditing practices and requirements may not
be comparable to those applicable to U.S. companies. In many foreign countries,
there is less government supervision and regulation of business and industry
practices, stock exchanges, brokers and listed companies than in the United
States. Foreign securities transactions may also be subject to higher brokerage
costs than domestic securities transactions. The foreign securities markets of
many of the countries in which the Fund may invest may also be smaller, less
liquid and subject to greater price volatility than those in the United States.
In addition, the Fund may encounter difficulties or be unable to pursue legal
remedies and obtain judgment in foreign courts.
Foreign stock markets have different clearance and settlement procedures and
in certain markets there have been times when settlements have been unable to
keep pace with the volume of securities transactions, making it difficult to
conduct such transactions. Delays in settlement could result in temporary
periods when assets of the Fund are uninvested and no return is earned thereon.
The inability of the Fund to make intended security purchases due to settlement
problems could cause the Fund to miss attractive investment opportunities.
Further, the inability to dispose of portfolio securities due to settlement
problems could result either in losses because of subsequent declines in the
value of the portfolio security or, if the Fund has entered into a contract to
sell the security, in possible liability to the purchaser. Fixed commissions on
some foreign securities exchanges are generally higher than negotiated
commissions on U.S. exchanges, although the Manager will endeavor to achieve the
most favorable net results on the Fund's portfolio transactions. It may be more
difficult for the Fund's agents to keep currently informed about corporate
actions such as stock dividends or other matters that may affect the prices of
portfolio securities. Communications between the United States and foreign
countries may be less reliable than within the United States, thus increasing
the risk of delayed settlements of portfolio transactions or loss of
certificates for portfolio securities. Moreover, individual foreign economies
may differ favorably or unfavorably from the United States economy in such
respects as growth of gross domestic product, rate of inflation, capital
reinvestment, resource self-sufficiency and balance of payments position. The
Manager seeks to mitigate the risks to the Fund associated with the foregoing
considerations through diversification and continuous professional management.
3
<PAGE>
Brokerage commissions, custodial services, and other costs relating to
investment in foreign countries are generally more expensive than in the United
States. Clearance and settlement procedures on foreign markets are different and
problems with settling security transactions could result in temporary periods
when assets of the fund are uninvested and no return is earned on such amounts.
Depository receipts are typically issued by foreign banks or trust companies,
although they may also be issued by U.S. banks or trust companies, and evidence
ownership of underlying securities issued by either a foreign or a U.S.
corporation. Depository receipts may be issued pursuant to a sponsored program,
where an issuer has made arrangements to have its securities traded in the form
of depository receipts, or in unsponsored programs, where the issuer may not be
directly involved in the creation of the program. Depository receipts may not
necessarily be denominated in the same currency as the underlying securities
into which they may be converted. In addition, the issuers of the securities
underlying unsponsored depository receipts are not obligated to disclose
material information in the U.S. and, therefore, there may be less information
available regarding such issuers and there may not be a correlation between such
information and the market value of the depository receipts. Depository receipts
also involve the risks of other investments in foreign stocks, as discussed
above.
FUTURES CONTRACTS (ALL FUNDS EXCEPT THE GOVERNMENT CASH FUND)
Upon entering into a futures contract, a Fund will initially be required to
deposit with the custodian an amount of initial margin using cash or U.S.
Treasury bills equal to approximately 1 1/2% of the contract amount. The nature
of initial margin in futures transactions is different from that of margin in
securities transactions in that futures contract's initial margin does not
involve the borrowing of funds by customers to finance the transactions. Rather,
the initial margin is in the nature of a performance bond or good faith deposit
on the contract which is returned to the Fund upon termination of the futures
contract, assuming all contractual obligations have been satisfied. In addition
to initial margin, the Fund is required to deposit cash, liquid debt
obligations, liquid equity securities or cash equivalents in an amount equal to
the notional value of all long futures contracts, less the initial margin
amount, in a segregated account with the custodian to ensure that the use of
such futures contracts is not leveraged. If the value of the securities placed
in the segregated account declines, additional securities, cash or cash
equivalents must be placed in the segregated account so that the value of the
account will at least equal the amount of the Fund's commitments with respect to
such futures contracts.
Subsequent payments, called maintenance margin, to and from the broker, will
be made on a daily basis as the price of the underlying security fluctuates,
making the long and short positions in the futures contract more or less
valuable, a process known as "marking to market." For example, when the Fund has
purchased a futures contract and the price of the underlying security has risen,
that position will have increased in value and the Fund will receive from the
broker a maintenance margin payment equal to that increase in value. Conversely,
when the Fund has purchased a futures contract and the price of the underlying
security has declined, the position would be less valuable and the Fund would be
required to make a maintenance margin payment to the broker. At any time prior
to expiration of the futures contract, the Fund may elect to close the position
by taking an opposite position which will operate to terminate the Fund's
position in the futures contract. A final determination of maintenance margin is
then made, additional cash is required to be paid by or released to the Fund,
and the Fund realizes a loss or a gain.
While futures contracts based on securities do provide for the delivery and
acceptance of securities, such deliveries and acceptances are very seldom made.
Generally, the futures contract is terminated by entering into an offsetting
transaction. An offsetting transaction for a futures contract sale is effected
by the Fund entering into a futures contract purchase for the same aggregate
amount of the specific type of financial instrument with the same delivery date.
If the price in the sale exceeds the price in the offsetting purchase, the Fund
immediately is paid the difference and thus realizes a gain. If the offsetting
purchase price exceeds the sale price, the Fund pays the difference and realizes
a loss. Similarly, the closing out of a futures contract purchase is effected by
the Fund entering into a futures contract sale. If the offsetting sale price
exceeds the purchase price, the Fund realizes a gain, and if the purchase price
exceeds the offsetting price, the Fund realizes a loss.
There are several risks in connection with the use of futures contracts as a
hedging device. One risk arises due to the imperfect correlation between
movements in the price of the futures contracts and movements in the price of
the subject of the hedge. The price of the futures contract may move more than
or less than the price of the securities or currency being hedged.
If the price of the futures contracts moves less than the price of the
securities or currency hedged, the hedge will not be fully effective, but, if
the price of the securities or currency being hedged has moved in an unfavorable
direction, the Fund would be in a better position than if it had not hedged at
all. If the price of the securities or currency being hedged has moved in a
favorable direction, this advantage will be partially offset by the movement in
the price of the futures contract. If the price of the futures contract moves
more than the price of the security or currency, the Fund will experience either
a loss or gain on the futures which will not be completely offset by movements
in the prices of the securities or currency which is the subject of the hedge.
To compensate for the imperfect correlation of such movements in price, the
Fund may buy or sell futures contracts in a greater dollar amount than the
dollar amount of the securities or currency being hedged if the historical
volatility of the prices of such securities or currency has been greater than
the historical volatility of the futures contracts. Conversely, the Fund may buy
or sell
4
<PAGE>
fewer futures contracts if the historical volatility of the price of the
securities or currency being hedged is less than the historical volatility of
the futures contracts.
It is also possible that, where a Fund has sold futures to hedge its
portfolio against a decline in the market, the market may advance and the value
of securities held in the Fund's portfolio may decline. If this occurred, the
Fund would lose money on the futures contracts and also experience a decline in
value in its portfolio securities. However, while this could occur for a very
brief period or to a very small degree, over time, the value of a diversified
portfolio will tend to move in the same direction as the futures contracts.
Where futures are purchased to hedge against a possible increase in the cost
of securities before a Fund is able to invest its cash (or cash equivalents) in
an orderly fashion, it is possible that the market may decline instead; if the
Fund then concludes not to invest in the relevant securities at that time
because of concern as to possible further market decline or for other reasons,
the Fund will realize a loss on the futures contract that is not offset by a
reduction in the price of securities purchased.
Another risk arises because the market prices of futures contracts may be
affected by certain factors. First, all participants in the futures market are
subject to initial margin and maintenance margin requirements. Rather than
meeting maintenance margin requirements, investors may close futures contracts
through offsetting transactions which could distort the normal relationship
between the debt securities and futures markets. Second, from the point of view
of speculators, the margin requirements in the futures market are less onerous
than margin requirements in the securities market. Therefore, increased
participation by speculators in the futures market may also cause temporary
price distortions.
Due to the possibility of price distortion in the futures market and because
of the imperfect correlation between movements in securities and movements in
the prices of futures contracts, a correct forecast of interest rate trends by
the Manager may still not result in a successful hedging transaction over a very
short period of time.
The hours of trading for futures contracts may not conform to the hours
during which the underlying securities are traded. To the extent that the
futures contracts markets close after the markets for the underlying securities,
significant price movements can take place in the futures contracts markets that
cannot be reflected in the markets of the underlying securities.
Positions in futures contracts may be closed out only on an exchange or board
of trade which provides a secondary market for such futures. Although the Trust
intends to purchase or sell futures only on exchanges or boards of trade where
there appears to be an active secondary market, there is no assurance that a
liquid secondary market on an exchange or board of trade will exist for any
particular contract or at any particular time. In such event, it may not be
possible to close a futures position and, in the event of adverse price
movements, the Fund would continue to be required to make daily cash payments of
maintenance margin. However, in the event futures contracts have been used to
hedge portfolio securities, such securities will not be sold until the futures
contracts can be terminated. In such circumstances, an increase in the price of
the securities, if any, may partially or completely offset losses on the futures
contract. However, as described above, there is no guarantee that the price of
the securities will, in fact, correlate with the price movements in the futures
contract and thus provide an offset to losses on a futures contract.
Successful use of futures contracts by the Trust is also subject to the
Manager's ability to correctly predict movements in the direction of interest
rates and other factors affecting markets for securities. For example, if a Fund
has hedged against the possibility of an increase in interest rates which would
adversely affect securities held in its portfolio and prices of such securities
increase instead, the Fund will lose part or all of the benefit of the increased
value of its securities which it has hedged because it will have offsetting
losses in its futures positions. In addition, in such situations, if the Fund
has insufficient cash, it may have to sell securities to meet maintenance margin
requirements. Such sales of securities may be, but will not necessarily be, at
increased prices which reflect the rising market. The Fund may have to sell
securities at a time when it may be disadvantageous to do so.
FUTURES CONTRACTS ON GOVERNMENT SECURITIES
Currently futures contracts can be purchased and sold with respect to U.S.
Treasury bonds, U.S. Treasury notes and GNMA certificates on the Chicago Board
of Trade, and with respect to U.S. Treasury bills on the International Monetary
Market at the Chicago Mercantile Exchange.
INVESTMENT COMPANIES (ALL FUNDS EXCEPT THE GOVERNMENT CASH FUND)
Investments by the Trust in investment companies will be effected by
independent investment managers, and the Trust will have no control over the
investment management, custodial arrangements or operations of any investments
made by such investment managers. Some of the funds in which a Fund may invest
could also incur more risks than would be the case for direct investments. For
example, they may engage in investment practices that entail greater risks or
invest in companies whose securities and other investments are more volatile. In
addition, the funds in which a Fund of the Trust invests may or may not have the
same fundamental investment limitations as those of the Fund itself. While a
potential benefit of investing in closed-end investment companies would be to
realize value from a decrease in the discount from net asset value at which some
closed-end funds trade, there is also the potential that such discount could
grow, rather than decrease.
5
<PAGE>
By investing in investment companies indirectly through the Trust, a
shareholder of the investing Fund will bear not only a proportionate share of
the expenses of that Fund (including operating costs and investment advisory and
administrative fees) but also, indirectly, similar expenses of the investment
companies in which the Fund invests. A shareholder may also indirectly bear
expenses paid by investment companies in which the Fund invests related to the
distribution of such investment companies' shares. Some of the open-end
investment companies in which the Fund may invest may limit the ability of
shareholders (including a Fund of the Trust) to redeem their shares.
Closed-end investment companies frequently trade at a discount from net asset
value. Only if the discount is sufficiently large will the additional income
earned by a portfolio purchased at a discount offset the additional layer of
expense. If shares of another investment company are purchased at a discount
which subsequently declines, performance will be better than it would have been
had the underlying instruments been purchased directly. Our funds will invest in
another investment company only if the portfolio manager believes that the
fund's investment objective will be furthered by doing so. The Government Cash
Fund will not normally invest in any other investment companies.
The Government Cash Fund may not invest in securities of investment
companies, except as they may be acquired as part of a merger, consolidation or
acquisition of assets. The other Funds may not invest in investment companies
except by purchase in the open market involving only customary brokers'
commissions, in connection with a merger, consolidation, reorganization, or
acquisition of assets, or as otherwise permitted by applicable law. Current law
prohibits any Fund from (i) owning more than 3% of the voting securities of any
one investment company; (ii) investing more than 5% of its assets in the
securities of any one investment company; or (iii) investing more than 10% of
its assets in securities issued by investment companies. Any Fund is also
prohibited from owning more than 10% of the voting securities of a registered
closed-end investment company. If the investment securities of another
investment company were the only investment securities held by a Fund, these
restrictions would not apply to that Fund. All Funds may also invest in other
investment companies to facilitate the implementation of a master-feeder
structure.
OPTIONS (ALL FUNDS EXCEPT THE GOVERNMENT CASH FUND)
When a Fund writes an option, an amount equal to the premium received by the
Fund is recorded as an asset and as an offsetting liability. The amount of the
liability is "marked-to-market" daily to reflect the current market value of the
option, which is the last sale price on the principal exchange on which such
option is traded or, in the absence of a sale, the mean between the latest bid
and offering prices. If an option written by the Fund expires, or a Fund enters
into a closing purchase transaction, the Fund will realize a gain (or, in the
latter case, a loss, if the cost of a closing transaction exceeds the premium
received) and the liability related to such option will be extinguished.
The premium paid by a Fund for the purchase of a put option (its cost) is
recorded initially as an investment, the value of which is subsequently adjusted
to the current market value of the option. If the current market value of a put
option exceeds its premium, the excess represents unrealized appreciation;
conversely, if the premium exceeds the current market value, the excess
represents unrealized depreciation. The current market value of an option
purchased by a Fund equals the option's last sale price on the principal
exchange on which it is traded or, in the absence of a sale, the mean between
the latest bid and offering prices.
An option position may be closed out only on an exchange which provides a
secondary market for an option of the same series. Although a Fund generally
will purchase or write only those options for which there appears to be an
active secondary market, there is no assurance that a liquid secondary market on
an exchange will exist for any particular option, or at any particular time, and
for some options no secondary market on an exchange may exist. In such event, it
might not be possible to effect closing transactions in particular options, with
the result that the Fund would have to exercise its options in order to realize
any profit and would incur transaction costs on the sale of underlying
securities pursuant to the exercise of put options. If a Fund, as a covered call
option writer, is unable to effect a closing purchase transaction in a secondary
market, it will not be able to sell the underlying security until the option
expires or it delivers the underlying security upon exercise.
Reasons for the absence of a liquid secondary market on an exchange include
the following: (a) there may be insufficient interest in trading certain
options; (b) restrictions may be imposed by an exchange on opening transactions
or closing transactions or both; (c) trading halts, suspensions or other
restrictions may be imposed with respect to particular classes or series of
options or underlying securities; (d) unusual or unforeseen circumstances may
interrupt normal operations on an exchange; (e) the facilities of an exchange or
the Options Clearing Corporation (the "OCC") may not at all times be adequate to
handle current trading volume; or (f) one or more exchanges might, for economic
or other reasons, decide or be compelled at some future date to discontinue the
trading of options (or a particular class or series of options), in which event
the secondary market on that exchange (or in that class or series of options)
would cease to exist, although outstanding options on that exchange that had
been issued by the OCC as a result of trades on that exchange would continue to
be exercisable in accordance with their terms.
In addition, there is no assurance that higher-than-anticipated trading
activity or other unforeseen events might not, at times, render certain of the
facilities of the OCC inadequate, and thereby result in the institution by an
exchange of special procedures which may interfere with the timely execution of
customers' orders.
6
<PAGE>
The amount of the premiums which a Fund may pay or receive may be adversely
affected as new or existing institutions, including other investment companies,
engage in or increase their option purchasing and writing activities.
In the event of a shortage of the underlying securities deliverable on
exercise of a listed option, the OCC has the authority to permit other,
generally comparable securities to be delivered in fulfillment of option
exercise obligations. If the OCC exercises its discretionary authority to allow
such other securities to be delivered, it may also adjust the exercise prices of
the affected options by setting different prices at which otherwise ineligible
securities may be delivered. As an alternative to permitting such substitute
deliveries, the OCC may impose special exercise settlement procedures.
OPTIONS ON FUTURES CONTRACTS
Currently, options can be purchased or sold with respect to futures contracts
on U.S. Treasury bonds on the Chicago Board of Trade.
The Fund is required to deposit initial margin and maintenance margin with
respect to put and call options on futures contracts written by it pursuant to
brokers' requirements similar to those applicable to interest rate futures
contracts described above. In addition, net option premiums are included as
initial margin deposits. As with options on debt securities, the writer of an
option on a futures contract may terminate his position by selling or purchasing
an option of the same series. The ability to establish and close out positions
on such options is subject to the existence of a liquid secondary market. The
Fund will not purchase options on futures contracts on any exchange unless and
until, in the Manager's opinion, the market for such options is sufficiently
liquid that the risks in connection with options on futures contracts are not
greater than the risks in connection with futures contracts.
Compared to the purchase or sale of futures contracts, the purchase of
options on futures contracts involves less potential risk to the Fund because
the maximum amount at risk is the premium paid for the options (plus transaction
costs). However, there may be circumstances when the use of an option on a
futures contract would result in a loss to the Fund when the use of a futures
contract would not, such as when there is no movement in the prices of debt
securities. Writing an option on a futures contract involves risks similar to
those arising in the sale of futures contracts, as described above.
In purchasing and selling futures contracts and in purchasing options on
futures contracts, the Fund will comply with rules and interpretations of the
Commodity Futures Trading Commission ("CFTC") under which it is exempted from
regulation as a commodity pool operator. The CFTC regulations which exempt the
Fund from regulation as a commodity pool operator require, among other things,
(i) that futures and related options be used solely for bona fide hedging
purposes, as defined in CFTC regulations or, alternatively, with respect to each
long futures or options position, the Fund will ensure that the underlying
commodity value of such contract does not exceed the sum of segregated cash or
money market instruments, margin deposits on such contracts, cash proceeds from
investments due in 30 days and accrued profits on such contracts held by the
commodity broker, and (ii) that the Fund not enter into futures and related
options for which the aggregate initial margin and premiums exceed 5% of the
fair market value of the Fund's total assets. There is no other limitation on
the percentage of the Fund's assets that may be invested in futures and related
options. The Internal Revenue Code's requirements for qualification as a
regulated investment company may limit the extent to which the Fund can engage
in futures transactions.
OPTIONS ON GOVERNMENT SECURITIES
ON TREASURY BONDS AND NOTES. Because the trading interest in Treasury bonds and
notes tends to center on the most recently auctioned issues, the exchanges will
not continue indefinitely to introduce new expirations with respect to such
options to replace expiring options on particular issues. The expirations
introduced at the commencement of options trading on a particular issue will be
allowed to run, with the possible addition of a limited number of new
expirations, as the original expirations expire. Options trading on each issue
of bonds or notes will thus be phased out as new options are listed on more
recent issues, and a full range of expirations will not ordinarily be available
on the exchange for every issue on which options are traded.
ON TREASURY BILLS. Because the deliverable Treasury bill changes from week to
week, writers of Treasury bill calls cannot provide in advance for their
potential exercise settlement obligations by acquiring and holding the
underlying security. However, if the Fund holds a long position in Treasury
bills with a principal amount corresponding to the contract size of the option,
it may be hedged from a risk standpoint. In addition, the Fund will maintain
Treasury bills, maturing no later than those which would be deliverable in the
event of exercise of a call option it has written, in a segregated account with
its custodian so that it will be treated as being covered for margin purposes.
ON GNMA CERTIFICATES. Options on GNMA certificates are not currently traded on
any national securities exchange, although the Securities and Exchange
Commission (the "Commission") has approved such options for trading on the
Chicago Board Options Exchange. Since the remaining principal balance of GNMA
certificates declines each month as mortgage payments are made, the Fund, as a
writer of a GNMA call, may find that the GNMA certificates it holds no longer
have a sufficient remaining principal balance to satisfy its delivery obligation
in the event of exercise of the call option it has written. Should this occur,
7
<PAGE>
additional GNMA certificates from the same pool (if obtainable), or replacement
GNMA certificates, will have to be purchased in the cash market to meet delivery
obligations. The Fund will either replace GNMA certificates representing cover
for call options it has written, or maintain in a segregated account with its
custodian cash or U.S. Government securities or other appropriate high grade
debt obligations having an aggregate value equal to the market value of the GNMA
certificates underlying the call options it has written.
The hours of trading for options on U.S. Government securities may not
conform to the hours during which the underlying securities are traded. To the
extent that the options markets close before the markets for the underlying
securities, significant price and rate movements can take place in the
underlying markets that cannot be reflected in the options markets.
Options are traded on exchanges on only a limited number of U.S. Government
securities, and exchange regulations limit the maximum number of options which
may be written or purchased by a single investor or a group of investors acting
in concert. The Trust and other clients advised by the Manager may be deemed to
constitute a group for these purposes. In light of these limits, the Trust's
Board of Trustees (the "Board of Trustees" or the "Board") may determine at any
time to restrict or terminate the public offering of the Fund's shares
(including through exchanges from the other Funds).
Exchange markets in options on U.S. Government securities are a relatively
new and untested concept and it is impossible to predict the amount of trading
interest that may exist in such options. There can be no assurance that viable
exchange markets will develop or continue.
REPURCHASE AGREEMENTS (ALL FUNDS)
Repurchase agreements involve purchases of securities by a Fund. In such a
transaction, at the time the Fund purchases the security, it simultaneously
agrees to resell and redeliver the security to the seller who also
simultaneously agrees to buy back the security at a fixed price and time. This
assumes a predetermined yield for the Fund during its holding period, since the
resale price is always greater than the purchase price and reflects an
agreed-upon market rate. Such transactions afford an opportunity for the Fund to
invest temporarily available cash. Repurchase agreements may be considered loans
to the seller collateralized by the underlying securities. The risk to the Fund
is limited to the ability of the seller to pay the agreed-upon sum on the
repurchase date; in the event of default, the repurchase agreement provides that
the Fund is entitled to sell the underlying collateral. If the value of the
collateral declines after the agreement is entered into, however, and if the
seller defaults under a repurchase agreement when the value of the underlying
collateral is less than the repurchase price, the Fund could incur a loss of
both principal and interest. The manager monitors the value of the collateral at
the time the transaction is entered into and at all times subsequent during the
term of the repurchase agreement in an effort to determine that the value of the
collateral always equals or exceeds the agreed-upon repurchase price to be paid
to the Fund. If the seller were to be subject to a federal bankruptcy
proceeding, the ability of the Fund to liquidate the collateral could be delayed
or impaired because of certain provisions of the bankruptcy laws.
PERFORMANCE INFORMATION
GOVERNMENT CASH FUND
From time to time, the Trust determines a current yield and effective yield
for each class of shares of the Government Cash Fund. For a further discussion
of how the Trust calculates yield, see "Pricing of Fund Shares" in the
Prospectus.
The effective yield is an annualized yield based on a compounding of the
unannualized base period return. The effective yield will be slightly higher
than the yield or seven-day current yield because of the compounding effect of
the assumed reinvestment.
These yields are each computed in accordance with a standard method
prescribed by the rules of the Commission, by first determining the net change
in account value for a hypothetical account having a share balance of one share
at the beginning of a seven-day period (the "beginning account value"). The net
change in account value equals the value of additional shares purchased with
dividends from the original share and dividends declared on both the original
share and any such additional shares. The unannualized base period return equals
the net change in account value divided by the beginning account value. Realized
gains or losses or changes in unrealized appreciation or depreciation are not
taken into account in determining the net change in account value.
The yields are then calculated as follows:
Net Change in Account Value 365
Current Yield = ----------------------------- X ---
Beginning Account Value 7
365
Effective Yield = [(1 + Base Period Return)---] -1
7
8
<PAGE>
For the seven days ended December 31, 1999, the Government Cash Fund's
current and effective (compounded) yields were 5.06% and 5.16%, respectively,
for Class A Shares; 4.36% and 4.44%, respectively, for Class B Shares; 5.06% and
5.16%, respectively, for Class C Shares; and 5.36% and 5.48%, respectively, for
Class I Shares.
Yield is a function of portfolio quality and composition, portfolio maturity
and operating expenses. Yields fluctuate and do not necessarily indicate future
results. While yield information may be useful in reviewing the performance of
the Fund, it may not provide a basis for comparison with bank deposits, other
fixed rate investments or other investment companies that may use a different
method of calculating yield.
OTHER FUNDS
The Trust will include performance data for Class A, Class B, Class C and
Class I Shares of each Fund in its advertisements, sales literature and other
information distributed to the public that includes performance data of a Fund.
Such performance information will be based on investment yields or total returns
for the Fund.
YIELD
Yield may not be the same as the distribution rate or the income reported in
the Fund's financial statements. We compute yield by taking the interest and
dividend income a Fund earns in a 30-day period, net of expenses, and dividing
that amount by the average number of shares entitled to receive dividends. Yield
will be calculated, using a one-month base period, according to the following
formula:
Yield = 2 X [(a-b/cd) + 1] 6 - 1
Where:
a = dividends and interest earned during the period
b = expenses accrued for the period (net of reimbursements)
c = the average daily number of shares outstanding during the period that
were entitled to receive dividends
d = the maximum offering price per share on the last day of the period.
The annualized yield for the Class A, Class B, Class C and Class I Shares of
the Government Fund at December 31, 1999 was 4.34%, 3.84%, 4.10% and 4.86%.
AVERAGE ANNUAL TOTAL RETURN
Total return represents the average annual compounded rate of return on an
investment of $1,000 at the maximum public offering price (in the case of Class
A Shares) or reflecting the deduction of any applicable CDSC. All data are based
on past investment results.
Average annual total return for a given period is computed by finding the
average annual compounded rate of return over the period that would equate the
initial amount invested to the ending redeemable value, according to the
following formula:
P(1 + T)n = ERV
Where:
P = a hypothetical initial investment in the Fund of $1,000
T = average annual total return
n = number of years in period
ERV = ending redeemable value at the end of the period of a hypothetical
$1,000 investment in the Fund made at the beginning of the period.
The following table summarizes the calculation of total return for each Fund
(including the effect of the maximum sales charge) where applicable, through
December 31, 1999.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 1999
YEAR ENDED FIVE YEARS ENDED TEN YEARS ENDED COMMENCEMENT OF OPERATIONS*
FUND 12/31/99 12/31/99 12/31/99 TO 12/31/99
---- -------- -------- -------- -----------
CLASS A SHARES
--------------
<S> <C> <C> <C> <C>
Appreciation Fund (7.20)% 10.24% -- 9.63%
Foreign Equity Fund 16.22% -- -- 12.53%
Government Cash Fund 4.52% 4.86% -- 4.74%
Government Fund (7.21)% 4.43% 5.38% --
Growth & Income Fund (4.47)% -- -- 4.99%
Managed Assets 2.82% 11.73% -- 9.69%
Strategy Fund (3.02)% 9.70% 9.15% --
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
YEAR ENDED FIVE YEARS ENDED COMMENCEMENT OF OPERATIONS*
FUND 12/31/99 12/31/99 TO 12/31/99
---- -------- -------- -----------
CLASS B SHARES
--------------
<S> <C> <C> <C>
Appreciation Fund (5.40)% -- 7.01%
Foreign Equity Fund 18.06% -- 13.56%
Government Cash Fund (0.20)% -- 4.09%
Government Fund (6.95)% -- 3.64%
Growth & Income Fund (3.21)% -- 5.33%
Managed Assets 4.06% -- 11.71%
Strategy Fund (1.13)% -- 5.79%
CLASS C SHARES
--------------
Appreciation Fund (2.49)% 10.73% 8.48%
Foreign Equity Fund 21.85% -- 14.65%
Government Cash Fund 4.52% 4.86% 4.74%
Government Fund (3.09)% 4.95% 4.63%
Growth & Income Fund 0.45% -- 6.19%
Managed Assets 8.01% 12.19% 9.81%
Strategy Fund 1.94% 10.17% 8.67%
CLASS I SHARES
--------------
Appreciation Fund (1.45)% -- 8.44%
Government Cash Fund 4.83% -- 5.11%
Government Fund 2.31% -- 4.80%
Growth & Income Fund 1.46% -- 7.25%
Managed Assets 9.08% -- 13.94%
Strategy Fund 2.96% -- 7.80%
</TABLE>
*Since inception, March 25, 1985 for Class A Shares of the Government Fund;
December 29, 1989 for Class A Shares of the Strategy Fund; October 7, 1991 for
Class A Shares of the Appreciation Fund, Strategy Fund, and the Government Fund;
and February 4, 1992 for Class C Shares of the Appreciation Fund, Strategy Fund,
and the Government Fund; February 8, 1993 for Class A and Class C Shares of
Managed Assets; May 1, 1994 for Class A and Class C Shares of the Government
Cash Fund; April 8, 1996 for Class B Shares of the Appreciation Fund, Government
Cash Fund, Strategy Fund, Managed Assets, and Government Fund; November 1, 1996
for Class I Shares of the Appreciation Fund, Strategy Fund, Government Cash
Fund, and Managed Assets; November 26, 1996 for Class A, Class B, Class C and
Class I Shares of the Growth & Income Fund; July 14, 1997 for Class I Shares of
the Government Fund; and November 24, 1997 for Class A, Class B, Class C and
Class I Shares of the Foreign Equity Fund.
The investment results of the Class A, Class B, Class C and Class I Shares of
a Fund will tend to fluctuate over time, so that historical yields, current
distributions and total returns should not be considered representations of what
an investment may earn in any future period. Actual dividends will tend to
reflect changes in market yields, and will also depend upon the level of a
Class's or Fund's expenses, realized or unrealized investment gains and losses,
and the results of such Fund's investment policies. Thus, at any point in time,
investment yields, current distributions or total returns may be either higher
or lower than past results, and there is no assurance that any historical
performance record will continue.
PERFORMANCE COMPARISONS
The Trust, a Fund or Class of a Fund may, from time to time, include in
advertisements containing total return the ranking of those performance figures
relative to such figures for groups of mutual funds having similar investment
objectives as categorized by ranking services such as Lipper Analytical
Services, Inc., CDA Investment Technologies, Inc., Weisenberger Financial
Services, Inc., and rating services such as Morningstar, Inc. Additionally, the
Trust or a Fund may compare its performance results to other investment or
savings vehicles (such as certificates of deposit) and may refer to results
published in various publications such as Changing Times, Forbes, Fortune,
Money, Barrons, Business Week, Stanger's Mutual Fund Monitor, The Stanger
Register, Stanger's Investment Adviser, The Wall Street Journal, New York Times,
Consumer Reports, Registered Representative, Financial Planning, Financial
Services Weekly, Financial World, U.S. News and World Report, Standard and
Poor's The Outlook, Investor's Daily and Personal Investor. The total return may
be used to compare the performance of a Fund against certain widely acknowledged
outside standards or indices for stock and bond market performance, such as the
Standard & Poor's 500 Composite Stock Price Index (the "S&P 500"), Dow Jones
Industrial Average, Consumer Price Index, Lehman Brothers Corporate Index and
Lehman Brothers T-
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Bond Index. The S&P 500 is a commonly quoted measure of stock market performance
and represents common stocks of companies of varying sizes segmented across 90
different industries which are listed on the New York Stock Exchange, the
American Stock Exchange and traded over the NASDAQ National Market System.
PORTFOLIO TURNOVER
The Funds pay brokerage commissions for purchases and sales of portfolio
securities. A high rate of portfolio turnover generally involves a
correspondingly greater amount of brokerage commissions and other costs which
must be borne directly by a Fund and thus indirectly by its shareholders. It may
also result in the realization of larger amounts of short-term capital gains,
which are taxable to shareholders as ordinary income. If such rate of turnover
exceeds 100%, the Funds will pay more in brokerage commissions than would be the
case if they had lower portfolio turnover rates. Historical turnover rates can
be found under the heading "Financial Highlights" located in the Trust's
Prospectus.
PORTFOLIO TRANSACTIONS AND BROKERAGE
ALL FUNDS OTHER THAN THE GOVERNMENT CASH FUND
The Adviser may use its broker/dealer affiliates, or other firms that sell
shares of the Funds, to buy and sell securities for the Funds, provided they
have the execution capability and that their commission rates are comparable to
those of other unaffiliated broker/dealers. Directors of PXP Securities Corp. or
its affiliates receive indirect benefits from the Funds as a result of its usual
and customary brokerage commissions that PXP Securities Corp. may receive for
acting as broker to the Funds in the purchase and sale of portfolio securities.
The investment advisory agreement does not provide for a reduction of the
advisory fee by any portion of the brokerage fees generated by portfolio
transactions of the Funds that PXP Securities Corp. may receive.
For the fiscal years ended December 1997, 1998 and 1999, brokerage
commissions paid by the Trust on portfolio transactions totaled $5,201,346,
$4,675,146 and $2,689,559, respectively. In the fiscal years ended October 1997,
1998 and 1999, the Trust paid brokerage commissions of $420,251, $670,940 and
$91,727, respectively, to PXP Securities Corp., its prior distributor and an
affiliate of its current Distributor. For the fiscal year ended December 31,
1999, the amount paid to PXP Securities Corp. was 3.40% of total brokerage
commissions paid by the Trust and was paid on transactions amounting to 1.70% of
the aggregate dollar amount of transactions involving the payment of
commissions. Brokerage commissions of $492,576 paid during the fiscal year ended
December 31, 1999, were paid on portfolio transactions aggregating $340,087,985
executed by brokers who provided research and other statistical information.
Allocation of transactions, including their frequency, to various dealers is
determined by the Adviser in its best judgment and in a manner deemed fair and
reasonable to shareholders. The primary consideration is prompt and efficient
execution of orders in an effective manner at the most favorable price. Subject
to this consideration, dealers who provide supplemental investment research,
statistical or other services to the Adviser may receive orders for transactions
by the Trust. Information so received will enable the Adviser to supplement its
own research and analysis with the views and information of other securities
firms. Such information may be useful and of value to the Adviser and its
affiliates in servicing other clients as well as the Trust; in addition,
information obtained by the Adviser and its affiliates in servicing other
clients may be useful and of value to the Adviser in servicing the Trust. In
allocating brokerage, the Adviser may also consider research provided to its
Subadviser pursuant to the Servicing Agreement.
The Trust may from time to time allocate brokerage commissions to firms that
furnish research and statistical information to the Adviser. The supplementary
research supplied by such firms is useful in varying degrees and is of
indeterminable value. Such research may, among other things, include advice
regarding economic factors and trends, advice as to occasional transactions in
specific securities and similar information relating to securities. No formula
has been established for the allocation of business to such brokers.
Consideration may be given to research provided and payment may be made of a fee
higher than that charged by another broker-dealer which does not furnish
research services or which furnishes research services deemed to be of lesser
value, so long as the criteria of Section 28(e) of the Securities Exchange Act
of 1934, as amended (the "1934 Act") are met. Section 28(e) of the 1934 Act
specifies that a person with investment discretion shall not be deemed to have
acted unlawfully or to have breached a fiduciary duty solely because such person
has caused the account to pay a higher commission than the lowest available
under certain circumstances. To obtain the benefit of Section 28(e), the person
so exercising investment discretion must make a good faith determination that
the commissions paid are reasonable in relation to the value of the brokerage
and research services provided viewed in terms of either that particular
transaction or his overall responsibilities with respect to the accounts as to
which he exercises investment discretion.
Currently, it is not possible to determine the extent to which commissions
that reflect an element of value for research services might exceed commissions
that would be payable for execution series alone, nor generally can the value of
research services be
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measured. Research services furnished might be useful and of value to the
Adviser and its affiliates in serving other clients as well as the Trust, but on
the other hand any research service obtained by the Adviser or the Distributor
from the placement of portfolio brokerage of other clients might be useful and
of value to the Adviser in carrying out its obligation to the Trust.
There are no fixed limitations regarding the Trust's portfolio turnover rate.
In computing the portfolio turnover rate, all securities, including options, the
maturities or expiration dates of which at the time of acquisition are one year
or less, are excluded. Subject to this exclusion, the turnover rate is
calculated by dividing (A) the lesser of purchases or sales of portfolio
securities of a particular Fund for the fiscal year by (B) the monthly average
of the value of portfolio securities owned by the particular Fund during the
fiscal year.
The options activities of the Strategy Fund, Appreciation Fund, Growth &
Income Fund, Managed Assets, Foreign Equity Fund and Government Fund may affect
their respective turnover rates, the amount of brokerage commissions paid by
each Fund and the realization of net short-term capital gains. Such gains, when
distributed, are taxed to shareholders (other than retirement plans) at ordinary
income tax rates. There are no fixed limitations regarding the Strategy Fund's
portfolio turnover. Securities satisfying the basic policies and objectives of
the Strategy Fund may be disposed of when they are no longer deemed to be
suitable. High portfolio turnover involves correspondingly greater brokerage
commissions, other transaction costs, and a possible increase in short-term
capital gains or losses. See "Determination of Net Asset Value" and "Dividends,
Distributions and Taxes."
The exercise of calls written by a Fund may cause the Fund to sell portfolio
securities, thus increasing its turnover rate. The exercise of puts also may
cause a sale of securities and increase turnover. Although such exercise is
within the Fund's control, holding a protective put might cause the Fund to sell
the underlying securities for reasons which would not exist in the absence of
the put. A Fund will pay a brokerage commission each time it buys or sells a
security in connection with the exercise of a put or call. Some commissions may
be higher than those which would apply to direct purchases or sales of portfolio
securities.
GOVERNMENT CASH FUND
The Adviser places orders for the purchase and sale of securities for the
Government Cash Fund. All the Government Cash Fund's portfolio transactions are
principal transactions with major dealers in money market instruments on which
no brokerage commission is paid. Purchases from or sales to dealers serving as
market-makers include the spread between the bid and asked prices. Transactions
are allocated to various dealers according to the best judgment of the Adviser
and in a manner deemed fair and reasonable to shareholders. The primary
consideration is prompt and effective execution of orders at the most favorable
price. Subject to this consideration, dealers who provide supplemental
investment research, statistical or other services to the Adviser may receive
orders for transactions by the Government Cash Fund.
SERVICES OF THE ADVISERS
Phoenix/Zweig Advisers LLC ("Phoenix/Zweig" or the "Adviser") (formerly
Zweig/Glaser Advisers LLC) is the investment adviser to each of the funds and is
located at 900 Third Avenue, New York, NY 10022. As of December 31, 1999,
Phoenix/Zweig was managing twelve funds with net assets of approximately $1.8
billion and two closed-end funds with assets in excess of $1.4 billion.
Phoenix/Zweig has been managing funds since September 1986.
Phoenix/Zweig is a wholly-owned subsidiary of Phoenix Investment Partners,
Ltd. ("PXP"), a Delaware corporation, located at 56 Prospect St., Hartford, CT
06115. PXP is a publicly-traded independent registered investment advisory firm,
and has served investors for over 70 years. As of December 31, 1999, PXP had
approximately $64.6 billion in assets under management through its investment
partners: Aberdeen Fund Managers, Inc. (Aberdeen) in Aberdeen, London, Singapore
and Fort Lauderdale; Duff & Phelps Investment Management Co. (Duff & Phelps) in
Chicago; Roger Engemann & Associates, Inc. (Engemann) in Pasadena; Seneca
Capital Management LLC (Seneca) in San Francisco; Phoenix/Zweig in New York; and
Phoenix Investment Counsel, Inc. (Goodwin, Hollister, and Oakhurst divisions) in
Hartford, CT, Sarasota, FL, and Scotts Valley, CA, respectively.
Overall responsibility for the management and supervision of the Trust and
the Funds rests with the Trustees of the Phoenix-Zweig Trust (the "Trustees").
Phoenix/Zweig's services under its Management Agreement are subject to the
direction of the Trustees.
The Management Agreement will continue in effect for two years if
specifically approved annually by a majority of the Board of Trustees who are
not parties to such contract or interested persons of any such party. The
Management Agreement may be terminated without penalty by either of the parties
on 60 days' written notice and must terminate in the event of its assignment.
The Management Agreement was last approved by the Trustees on January 12, 1999
and by shareholders on February 25, 1999.
The Management Agreement provides that the Adviser is liable only for its
acts or omissions caused by its willful misfeasance, bad faith, or gross
negligence in the performance of its duties or reckless disregard of its
obligations under the Management Agreement. The Management Agreement permits the
Adviser to render services to others and to engage in other activities.
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Pursuant to the Management Agreement, the Adviser: (a) supervises and assists
in the management of the assets of each Fund, furnishes each Fund with research,
statistical and advisory services and provides regular reports to the Trustees;
(b) provides advice and assistance with the operations of the Trust, compliance
support, preparation of the Trust's registration statements, proxy materials and
other documents and advice and assistance of the Adviser's General Counsel; (c)
makes investment decisions for the Trust; (d) selects brokers and dealers to
execute transactions for each Fund; (e) ensures that investments follow the
investment objective, strategies, and policies of that Fund and comply with
government regulations; and (f) furnishes office facilities, personnel necessary
to provide advisory services to the Funds, personnel to serve without salaries
as officers or agents of the Trust and compensation and expenses of any Trustees
who are also full-time employees of the Adviser or any of its affiliates.
Pursuant to the Servicing Agreement, Phoenix/Zweig has delegated to Zweig the
responsibility for making asset allocation decisions for the Funds.
The Funds' Subadviser is Zweig Consulting, LLC ("Zweig" or the "Subadviser").
Its principal offices are located at 900 Third Ave., New York, NY 10022. Zweig's
services under the Servicing Agreement are subject to the direction of both the
Trustees and Phoenix/Zweig. Under a Servicing Agreement with Phoenix/Zweig,
Zweig's duties to each Fund include: (1) promoting the interests of the Trust;
and (2) performing asset allocation research and analysis.
In managing the assets of the Funds, the Adviser furnishes continuously an
investment program for each Fund consistent with the investment objectives and
policies of that Fund. More specifically, the Adviser determines from time to
time what securities shall be purchased for the Trust and what securities shall
be held or sold by the Trust. The Subadviser determines what portion of the
Trust's assets shall be allocated between stocks, bonds and cash, as
appropriate, taking into account each Fund's investment objective. Both the
Subadviser and Adviser are subject always to the provisions of the Trust's
Agreement and Declaration of Trust, By-Laws and its registration statement under
the 1940 Act and under the 1933 Act covering the Trust's shares, as filed with
the SEC, and to the investment objectives, policies and restrictions of the
Trust, as each of the same shall be from time to time in effect, and subject,
further, to such policies and instructions as the Trustees of the Trust may from
time to time establish. To carry out such determinations, the Adviser places
order for the investment and reinvestment of each Fund's assets (see "Portfolio
Transactions and Brokerage").
The Trust pays the Adviser for its services, pursuant to the Management
Agreement, a monthly fee at the annual rate of 0.50% of the average daily net
assets of the Government Cash Fund, 0.60% of the average daily net assets of the
Government Fund, 0.75% of the average daily net assets of the Strategy Fund and
the Growth & Income Fund, and 1.00% of the average daily net assets of the
Appreciation Fund, Managed Assets, and Foreign Equity Fund.
For services to the Trust during the fiscal years ended December 31, 1997,
1998 and 1999, the Adviser received fees of $20,527,925, $20,835,087 and
$15,198,917, respectively, under the Management Agreement in effect. Of these
totals, the Adviser received fees from each Fund as follows:
FUND 1997 1998 1999
---- ---- ---- ----
Appreciation Fund $5,195,484 $5,478,055 $3,318,029
Foreign Equity Fund 2,927 66,869 80,425
Government Cash Fund 302,623 433,374 827,398
Government Fund 257,892 249,834 243,176
Growth & Income Fund 160,389 303,824 214,196
Managed Assets 5,454,174 5,677,160 5,597,860
Strategy Fund 9,154,436 8,625,971 4,917,833
The Adviser has voluntarily undertaken to limit the expenses of the
Government Cash Fund (exclusive of taxes, interest, brokerage commissions, 12b-1
fees and extraordinary expenses) until April 30, 2001 to 0.35% of its average
daily net assets. During the years ended December 31, 1997, 1998 and 1999, the
Adviser reimbursed $251,454, $296,837 and $489,015, respectively, to the
Government Cash Fund. The Adviser reserves the right to discontinue this policy
at any time after April 30, 2001.
The Adviser had voluntarily undertaken to limit the expenses of the Foreign
Equity Fund (exclusive of taxes, interest, brokerage commissions, 12b-1 fees and
extraordinary expenses) until April 30, 1999 to 1.50% of its average daily net
assets. For the period January 1, 1999 to April 30, 1999, the Adviser reimbursed
$35,865 to the Foreign Equity Fund. For the year ended December 31, 1998, the
Adviser reimbursed $148,672 to the Foreign Equity Fund. For the period November
24, 1997 (commencement of operations) to December 31, 1997, the Adviser
reimbursed $10,260 to the Foreign Equity Fund.
The Adviser had also voluntarily undertaken to limit the expenses of the
Growth & Income Fund (exclusive of taxes, interest, brokerage commissions, 12b-1
fees and extraordinary expenses) until April 30, 1998 to 1.00% of its average
daily net assets. During the years ended December 31, 1998 and 1997, the Adviser
reimbursed $13,761 and $148,969, respectively, to the Growth & Income Fund.
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The Adviser may draw upon the resources of the Distributor and its qualified
affiliates in rendering its services to the Trust. The Distributor or its
affiliates may provide the Adviser (without charge to the Trust) with investment
information and recommendations that may serve as the principal basis for
investment decisions with respect to certain Funds of the Trust.
The Trust, its Adviser and Subadviser, and Distributor have each adopted a
Code of Ethics pursuant to Rule 17-j1 under the Investment Company Act of 1940.
Personnel subject to the Codes of Ethics may purchase and sell securities for
their personal accounts, including securities that may be purchased, sold or
held by the Fund, subject to certain restrictions and conditions. Generally,
personal securities transactions are subject to preclearance procedures,
reporting requirements and holding period rules. The Codes also restrict
personal securities transactions in private placements, initial public offerings
and securities in which the Fund has a pending order.
NET ASSET VALUE
FOR ALL FUNDS, the net asset value per share of each class of shares of each
Fund is determined as of the close of regular trading on the NYSE (normally 4:00
p.m. eastern time), and as of 2:00 p.m. eastern time for the Government Cash
Fund, on each day that the NYSE is open. The NYSE is closed on the following
holidays (or the weekdays on which these holidays are celebrated when they fall
on a weekend): New Year's Day, Martin Luther King, Jr. Day, Presidents' Day,
Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day.
Shares are entitled to dividends as declared by the Board and, on liquidation
of a Fund, are entitled to receive their share of the net assets of the Fund.
Shareholders have no preemptive rights. The Trust's fiscal year ends on December
31.
We subtract the non-class specific liabilities of a Fund from the Fund's
assets to determine its total net assets. We then determine each class's
proportionate interest in the Fund's net assets. The liabilities attributable to
that class, including its distribution fees, are then deducted and the resulting
amount is divided by the number of shares of that class outstanding to produce
its net asset value per share.
Stocks, futures and options are valued at the closing prices reported on
recognized securities exchanges or, if no sale was reported, and for unlisted
securities, at the mean between the last-reported bid and asked prices. Bonds
and other fixed-income securities are valued at prices obtained from an
established bond-pricing service when such prices are available. Forward foreign
currency contracts are valued using forward currency exchange rates supplied by
a quotation service. Securities for which market quotations are not readily
available are valued at fair value as determined in good faith by or under the
direction of the Board of Trustees. Short-term obligations having a remaining
maturity of 60 days or less are valued at amortized cost (which approximates
market value). The Government Cash Fund values all short-term investments using
the amortized cost method pursuant to Rule 2a-7 under the Investment Company Act
of 1940.
THE GOVERNMENT CASH FUND. The Board of Trustees (the "Board") has determined
that it is in the best interests of the Government Cash Fund and its
shareholders to seek to maintain a stable net asset value per share, and that
the appropriate method for valuing portfolio securities is the amortized cost
method, provided that such method continues to fairly reflect the market-based
net asset value per share. The Board shall continuously review this method of
valuation and make changes that may be necessary to assure that the Government
Cash Fund's instruments are valued at their fair value as determined by the
Board in good faith.
The Board has determined that the Government Cash Fund will comply with the
conditions of Rule 2a-7 under the Act regarding the amortized cost method of
valuing portfolio securities. Under Rule 2a-7, the Board is obligated, as a
particular responsibility within the overall duty of care owed to the Fund's
shareholders, to establish procedures reasonably designed, taking into account
current market conditions and the Fund's investment objectives, to stabilize the
net asset value per share of the Fund for purposes of distribution and
redemption, at $1.00 per share. These procedures include periodically
monitoring, as the Board deems appropriate, at such intervals as are reasonable
in light of current market conditions, the relationship between the net asset
value per share based upon the amortized cost method of valuation and the net
asset value per share based upon available indications of market value. The
Board will consider what steps should be taken, if any, in the event of a
difference of more than 1/2 of 1% between the amortized cost value and the
market value per share. The Board will take such steps as it considers
appropriate (e.g., redemption in kind, selling portfolio instruments prior to
maturity to realize capital gains or losses, shortening the average portfolio
maturity, withholding dividends, or utilizing a net asset value per share
determined by using market quotations) to minimize any material dilution or
other unfair results that might arise from differences between the net asset
value per share based upon the amortized cost method of valuation and the net
asset value per share based upon market value.
Rule 2a-7 requires that a dollar-weighted average portfolio maturity of not
more than 90 days, appropriate to the objective of maintaining a stable net
asset value of $1.00 per share, be maintained, and precludes the purchase of any
instrument with a remaining time to maturity of more than 397 calendar days.
However, the underlying securities used as collateral for repurchase agreements
are not subject to these restrictions, because a repurchase agreement is deemed
to have a maturity equal to the period
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remaining until the date on which the repurchase of the underlying securities is
deemed to occur. Should the disposition of a portfolio security result in a
dollar-weighted average portfolio maturity of more than 90 days, the Government
Cash Fund will invest its available cash in a manner that will reduce such
average maturity to 90 days or less as soon as reasonably practicable. Rule 2a-7
also requires the Government Cash Fund to limit its investments to instruments
that the Board determines present minimal credit risks and that have been given
one of the two highest rating categories by nationally recognized statistical
rating organizations, or, in the case of instruments that are not so rated, are
of comparable quality as determined under procedures established by the Board.
It is the normal practice of the Government Cash Fund to hold portfolio
securities to maturity and realize their par values, unless a prior sale or
other disposition thereof is mandated by redemption requirements or other
extraordinary circumstances. A debt security held to maturity is redeemable by
its issuer at its principal amount plus accrued interest. Under the amortized
cost method of valuation traditionally employed by institutions for valuation of
money market instruments, neither the amount of daily income nor the net asset
value is affected by any unrealized appreciation or depreciation of the
portfolio. In periods of declining interest rates, the indicated daily yield on
shares of the Government Cash Fund (computed by dividing the annualized daily
income on the Fund's portfolio by the net asset value computed as above) may
tend to be higher than a similar computation made by utilizing a method of
valuation based upon market prices and estimates. The Government Cash Fund may,
to a limited extent, engage in short-term trading to attempt to take advantage
of short-term market variations, or may dispose of a portfolio security prior to
its maturity if the Adviser believes such disposition advisable, or necessary to
generate cash to satisfy redemptions. In such cases, the Government Cash Fund
may realize a gain or loss.
HOW TO BUY SHARES
The minimum initial investment is $500, and the minimum subsequent investment
is $25 for Class A, Class B or Class C Shares. However, both the minimum initial
and subsequent investment amounts are $25 for investments pursuant to the
"Investo-Matic" plan (a bank draft investing program administered by the
Distributor), or pursuant to the Systematic Exchange privilege, or for an
individual retirement account (IRA). In addition, there are no subsequent
investment minimum amounts in connection with the reinvestment of dividend or
capital gain distributions. The minimum initial investment for Class I Shares is
$1,000,000 with no minimum subsequent investment. Completed applications for the
purchase of shares should be mailed to: Phoenix-Zweig Funds, c/o State Street
Bank and Trust Company, P.O. Box 8301, Boston, MA 02266-8301.
The Trust has authorized one or more brokers to accept on its behalf purchase
and redemption orders. Such brokers are authorized to designate other
intermediaries to accept purchase and redemption orders on the Trust's behalf.
The Trust will be deemed to have received a purchase or redemption order when an
authorized broker or, if applicable, a broker's authorized designee, accepts the
order. Customer orders will be priced at the Funds' net asset values next
computed after they are accepted by an authorized broker or the broker's
authorized designee.
ALTERNATIVE PURCHASE ARRANGEMENTS
Shares may be purchased from investment dealers at a price equal to their net
asset value per share, plus a sales charge which, at the election of the
purchaser, may be imposed either (i) at the time of the purchase (the "initial
sales charge alternative") or (ii) on a contingent deferred basis (the "deferred
sales charge alternative"). Orders received by dealers prior to the close of
trading on the New York Stock Exchange (2:00 p.m. for shares of the Government
Cash Fund) are confirmed at the offering price effective at that time, provided
the order is received by the Authorized Agent prior to its close of business.
The alternative purchase arrangements permit an investor to choose the method
of purchasing shares that is more beneficial given the amount of the purchase,
the length of time the investor expects to hold the shares, whether the investor
wishes to receive distributions in cash or to reinvest them in additional shares
of the Funds, and other circumstances. Investors should consider whether, during
the anticipated life of their investment in the Fund, the accumulated continuing
distribution and services fees and contingent deferred sales charges on Class B
or Class C Shares would be less than the initial sales charge and accumulated
distribution services fee on Class A Shares purchased at the same time.
Dividends paid by the Fund, if any, with respect to each Class of Shares will
be calculated in the same manner at the same time on the same day, except that
fees such as higher distribution and services fees and any incremental transfer
agency costs relating to each Class of Shares will be borne exclusively by that
class. See "Dividends, Distributions and Taxes."
CLASS A SHARES
Class A Shares incur a sales charge when they are purchased and enjoy the
benefit of not being subject to any sales charge when they are redeemed, except
that a 1.00% deferred sales charge applies to shares purchased by an investor in
amounts over $1 million if redeemed within 12 months of purchase. Such deferred
sales charge may be waived under certain conditions. Class A Shares are subject
to ongoing distribution and services fees at an annual rate of 0.30% of the
Fund's aggregate average daily net assets attributable to the Class A Shares. In
addition, certain purchases of Class A Shares qualify for reduced initial sales
charges.
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CLASS B SHARES
Class B Shares do not incur a sales charge when they are purchased, but they
are subject to a sales charge if they are redeemed within six years of purchase.
The deferred sales charge may be waived in connection with certain qualifying
redemptions.
Class B Shares are subject to ongoing distribution and services fees at an
aggregate annual rate of up to 1.00% of the Fund's aggregate average daily net
assets attributable to the Class B Shares. Class B Shares enjoy the benefit of
permitting all of the investor's dollars to work from the time the investment is
made. The higher ongoing distribution and services fees paid by Class B Shares
will cause such shares to have a higher expense ratio and to pay lower
dividends, to the extent any dividends are paid, than those related to Class A
Shares. Class B Shares will automatically convert to Class A Shares seven years
after the end of the calendar month in which the shareholder's order to purchase
was accepted subject to the qualifications described in the Funds' Prospectus.
The purpose of the conversion feature is to relieve the holders of the Class B
Shares that have been outstanding for a period of time from most of the burden
of such distribution related expenses. The seven-year time limit has been deemed
sufficient for the Adviser and the Distributor to have been compensated for
distribution expenses related to the Class B Shares.
Class B Shares include all shares purchased pursuant to the deferred sales
charge alternative which have been outstanding for less than the period ending
seven years after the end of the month in which the shares were issued. At the
end of this period, Class B Shares will automatically convert to Class A Shares
and will no longer be subject to the higher distribution and services fees. Such
conversion will be on the basis of the relative net asset value of the two
classes without the imposition of any sales load, fee or other charge.
For purposes of conversion to Class A Shares, shares purchased through the
reinvestment of dividends and distributions paid in respect of Class B Shares in
a shareholder's Fund account will be considered to be held in a separate
subaccount. Each time any Class B Shares in the shareholder's Fund account
(other than those in the subaccount) convert to Class A, an equal pro rata
portion of the Class B Share dividends in the subaccount will also convert to
Class A Shares.
CLASS C SHARES
Class C Shares are purchased without an initial sales charge but are subject
to a deferred sales charge if redeemed within one year of purchase. The deferred
sales charge may be waived in connection with certain qualifying redemptions.
Shares issued in conjunction with the automatic reinvestment of income
distributions and capital gain distributions are not subject to any sales
charges. Class C Shares are subject to ongoing distribution and services fees at
an aggregate annual rate of up to 1.00% of the Fund's aggregate average daily
net assets attributable to Class C Shares for the Strategy Fund, Appreciation
Fund, Growth & Income Fund, Managed Assets and Foreign Equity Fund, and 0.75%
and 0.30% for the Government and Government Cash Funds, respectively.
CLASS I SHARES
Class I Shares are offered primarily to persons subject to the Subadviser's
Code of Ethics relating to personal securities transactions and to tax-exempt
retirement plans specifically affiliated with the Subadviser, as well as certain
institutional investors. If you are eligible to purchase and do purchase Class I
Shares, you will pay no sales charge at any time. There are no distribution and
service fees applicable to Class I Shares. Class I Shares are not available in
all states.
CLASS A SHARES--REDUCED INITIAL SALES CHARGES
Investors choosing Class A Shares may be entitled to reduced sales charges.
The ways in which sales charges may be avoided or reduced are described below.
QUALIFIED PURCHASERS. If you fall within any one of the following categories,
you will not have to pay a sales charge on your purchase of Class A Shares: (1)
trustee, director or officer of the Phoenix Funds, the Phoenix-Zweig Funds, the
Phoenix-Engemann Funds, Phoenix-Seneca Funds or any other mutual fund advised,
subadvised or distributed by the Adviser, Distributor or any of their corporate
affiliates (an "Affiliated Phoenix Fund"); (2) any director or officer, or any
full-time employee or sales representative (for at least 90 days) of the Adviser
or Distributor; (3) registered representatives and employees of securities
dealers with whom Distributor has sales agreements; (4) any qualified retirement
plan exclusively for persons described above; (5) any officer, director or
employee of a corporate affiliate of the Adviser or Distributor; (6) any spouse,
child, parent, grandparent, brother or sister of any person named in (1), (2),
(3) or (5) above; (7) employee benefit plans for employees of the Adviser,
Distributor and/or their corporate affiliates; (8) any employee or agent who
retires from Phoenix Home Life, Distributor and/or their corporate affiliates;
(9) any account held in the name of a qualified employee benefit plan, endowment
fund or foundation if, on the date of the initial investment, the plan, fund or
foundation has assets of $10,000,000 or more or at least 100 eligible employees;
(10) any person with a direct rollover transfer of shares from an established
Phoenix-Zweig Funds qualified plan; (11) any Phoenix Home Life separate account
which funds group annuity contracts offered to qualified employee benefit plans;
(12) any state, county, city, department, authority or similar agency prohibited
by law from paying a sales charge; (13) any fully matriculated student in any
U.S. service academy; (14) any unallocated account held by a third party
administrator, registered investment adviser, trust company, or bank trust
department which exercises discretionary authority and holds the account in a
fiduciary, agency, custodial or similar capacity, if in the aggregate such
accounts held by such entity equal or exceed $1,000,000 and by
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retirement plans with assets of $1,000,000 or more or at least 50 eligible
employees; (15) any person who is investing redemption proceeds from investment
companies other than the Phoenix Funds, Phoenix-Zweig Funds, Phoenix-Engemann
Funds or Phoenix-Seneca Funds if, in connection with the purchases or redemption
of the redeemed shares, the investor paid a prior sales charge provided such
investor supplies verification that the redemption occurred within 90 days of
the Phoenix Fund purchase and that a sales charge was paid; (16) any deferred
compensation plan established for the benefit of any Phoenix Fund, Phoenix-Zweig
Fund, Phoenix-Engemann Fund or Phoenix-Seneca Fund trustee or director; provided
that sales to persons listed in (1) through (16) above are made upon the written
assurance of the purchaser that the purchase is made for investment purposes and
that the shares so acquired will not be resold except to the Fund; (17)
purchasers of Class A Shares bought through investment advisers and financial
planners who charge an advisory, consulting or other fee for their services and
buy shares for their own accounts or the accounts of their clients; (18)
retirement plans and deferred compensation plans and trusts used to fund those
plans (including, for example, plans qualified or created under sections 401(a),
403(b) or 457 of the Internal Revenue Code), and "rabbi trusts" that buy shares
for their own accounts, in each case if those purchases are made through a
broker or agent or other financial intermediary that has made special
arrangements with the Distributor for such purchases; (19) 401(k) participants
in the Merrill Lynch Daily K Plan (the "Plan") if the Plan has at least $3
million in assets or 500 or more eligible employees; or (20) clients of
investment advisors or financial planners who buy shares for their own accounts
but only if their accounts are linked to a master account of their investment
advisor or financial planner on the books and records of the broker, agent or
financial intermediary with which the Distributor has made such special
arrangements (each of the investors described in (17) through (20) may be
charged a fee by the broker, agent or financial intermediary for purchasing
shares).
COMBINATION PURCHASE PRIVILEGE. Your purchase of any class of shares of the
Phoenix-Zweig Funds (other than Phoenix-Goodwin Money Market Fund Class A Shares
and Phoenix-Zweig Government Cash Fund Class A or Class M Shares) or other
Affiliated Phoenix Fund, if made at the same time by the same "person," will be
added together to determine whether the combined sum entitles you to an
immediate reduction in sales charges. A "person" is defined in this and the
following sections as (a) any individual, their spouse and minor children
purchasing shares for his or their own account (including an IRA account)
including his or their own trust; (b) a trustee or other fiduciary purchasing
for a single trust, estate or single fiduciary account (even though more than
one beneficiary may exist); (c) multiple employer trusts or Section 403(b) plans
for the same employer; (d) multiple accounts (up to 200) under a qualified
employee benefit plan or administered by a third party administrator; or (e)
trust companies, bank trust departments, registered investment advisers, and
similar entities placing orders or providing administrative services with
respect to funds over which they exercise discretionary investment authority and
which are held in a fiduciary, agency, custodial or similar capacity, provided
all shares are held of record in the name, or nominee name, of the entity
placing the order.
An "Affiliated Phoenix Fund" means any other mutual fund advised, subadvised
or distributed by the Adviser or Distributor or any corporate affiliate of
either or both the Adviser and Distributor provided such other mutual fund
extends reciprocal privileges to shareholders of the Phoenix Funds.
LETTER OF INTENT. If you sign a Letter of Intent, your purchase of any class
of shares of the Phoenix-Zweig Funds (other than Phoenix-Goodwin Money Market
Fund Class A Shares and Phoenix-Zweig Government Cash Fund Class A or Class M
Shares), if made by the same person within a 13-month period, will be added
together to determine whether you are entitled to an immediate reduction in
sales charges. Sales charges are reduced based on the overall amount you
indicate that you will buy under the Letter of Intent. The Letter of Intent is a
mutually non-binding arrangement between you and the Distributor. Since the
Distributor doesn't know whether you will ultimately fulfill the Letter of
Intent, shares worth 5% of the amount of each purchase will be set aside until
you fulfill the Letter of Intent. When you buy enough shares to fulfill the
Letter of Intent, these shares will no longer be restricted. If, on the other
hand, you do not satisfy the Letter of Intent, or otherwise wish to sell any
restricted shares, you will be given the choice of either buying enough shares
to fulfill the Letter of Intent or paying the difference between any sales
charge you previously paid and the otherwise applicable sales charge based on
the intended aggregate purchases described in the Letter of Intent. You will be
given 20 days to make this decision. If you do not exercise either election, the
Distributor will automatically redeem the number of your restricted shares
needed to make up the deficiency in sales charges received. The Distributor will
redeem restricted Class A Shares before Class C or Class B Shares, respectively.
Oldest shares will be redeemed before selling newer shares. Any remaining shares
will then be deposited to your account.
RIGHT OF ACCUMULATION. Your purchase of any class of shares of the
Phoenix-Zweig Funds, if made over time by the same person may be added together
to determine whether the combined sum entitles you to a prospective reduction in
sales charges. You must provide certain account information to the Distributor
to exercise this right.
ASSOCIATIONS. Certain groups or associations may be treated as a "person" and
qualify for reduced Class A Share sales charges. The group or association must:
(1) have been in existence for at least six months; (2) have a legitimate
purpose other than to purchase mutual fund shares at a reduced sales charge; (3)
work through an investment dealer; or (4) not be a group whose sole reason for
existing is to consist of members who are credit card holders of a particular
company, policyholders of an insurance company, customers of a bank or a
broker-dealer or clients of an investment adviser.
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CLASS A SHARES--WAIVER OF DEFERRED SALES CHARGE
The 1% CDSC will be waived where the investor's dealer of record, due to the
nature of the investor's account, notifies the distributor prior to the time of
the investment that the dealer waives the commission otherwise payable to the
dealer, or agrees to receive such commissions ratably over a 12-month period.
CLASS B AND CLASS C SHARES--WAIVER OF SALES CHARGES
The CDSC is waived on the redemption (sale) of Class B and Class C Shares if
the redemption is made (a) within one year of death (i) of the sole shareholder
on an individual account, (ii) of a joint tenant where the surviving joint
tenant is the deceased's spouse, or (iii) of the beneficiary of a Uniform Gifts
to Minors Act (UGMA), Uniform Transfers to Minors Act (UTMA) or other custodial
account; (b) within one year of disability, as defined in Code Section 72(m)(7);
(c) as a mandatory distribution upon reaching age 70 1/2 under any retirement
plan qualified under Code Sections 401, 408 or 403(b) or resulting from the
tax-free return of an excess contribution to an IRA; (d) by 401(k) plans using
an approved participant tracking system for participant hardships, death,
disability or normal retirement, and loans which are subsequently repaid; (e)
from certain other Class A and Class C Share retirement plans; (f) from the
Merrill Lynch Daily K Plan ("Plan") invested in Class B Shares, in which such
shares the Distributor has not paid the dealer the Class B sales commission; (g)
based on the exercise of exchange privileges among Class B and Class C Shares of
these Funds; (h) based on any direct rollover transfer of shares from an
established Fund qualified plan into another Affiliated Phoenix Fund IRA by
participants terminating from the qualified plan; and (i) based on the
systematic withdrawal program. If, as described in condition (a) above, an
account is transferred to an account registered in the name of a deceased's
estate, the CDSC will be waived on any redemption from the estate account
occurring within one year of the death. If the Class B or Class C Shares are not
redeemed within one year of the death, they will remain subject to the
applicable CDSC when redeemed. Shareholders between the ages of 59 1/2 and 70
1/2 receiving a CDSC waiver on mandatory distributions under retirement plans
described in condition (c) above prior to May 1, 1999, will continue to receive
the waiver.
CONVERSION FEATURE--CLASS B SHARES
Class B Shares will automatically convert to Class A Shares of the same Fund
seven years after they are bought. Conversion will be on the basis of the then
prevailing net asset value of Class A and Class B Shares. There is no sales
load, fee or other charge for this feature. Class B Shares acquired through
dividend or distribution reinvestments will be converted into Class A Shares at
the same time that other Class B Shares are converted based on the proportion
that the reinvested shares bear to purchased Class B Shares. The conversion
feature is subject to the continuing availability of an opinion of counsel or a
ruling of the Internal Revenue Service that the assessment of the higher
distribution fees and associated costs with respect to Class B Shares does not
result in any dividends or distributions constituting "preferential dividends"
under the Code, and that the conversion of shares does not constitute a taxable
event under federal income tax law. If the conversion feature is suspended,
Class B Shares would continue to be subject to the higher distribution fee for
an indefinite period. Even if the Trust were unable to obtain such assurances,
it might continue to make distributions if doing so would assist in complying
with its general practice of distributing sufficient income to reduce or
eliminate federal taxes otherwise payable by the Funds.
IMMEDIATE INVESTMENT
In order to obtain immediate investment of funds, initial and subsequent
purchases of shares of a Fund may also be made by wiring Federal Funds (monies
held in a bank account with a Federal Reserve Bank) directly pursuant to the
following instructions:
(1) For initial investments, telephone the Trust at (800) 367-5877. Certain
information will be requested from you regarding the account, and an
account number will be assigned.
(2) Once an account number has been assigned, direct your bank to wire the
Federal Funds to State Street Bank and Trust Company, Custody &
Shareholder Services Division, Boston, Massachusetts 02105, attention of
the appropriate Fund of the Phoenix-Zweig Trust. Your bank must include
the account number and the name(s) in which your account is registered in
its wire and also request a telephone advice. Your bank may charge a fee
to you for transmitting funds by wire.
An order for shares of a Fund purchased with Federal Funds will be accepted
on the business day Federal Funds are wired provided the Federal Funds are
received by 4:00 p.m. on that day; otherwise, the order will not be accepted
until the next business day. Shareholders should bear in mind that wire
transfers may take two or more hours to complete.
Promptly after an initial purchase of shares made by wiring Federal Funds
directly, the shareholder should complete and mail an Account Application to
Equity Planning.
INVESTOR ACCOUNT SERVICES
The Funds offer accumulation plans, withdrawal plans and reinvestment and
exchange privileges. Certain privileges may not be available in connection with
all classes. In most cases, changes to account services may be accomplished over
the phone. Inquiries
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regarding policies and procedures relating to shareholder account services
should be directed to Shareholder Services at (800) 243-1574. The Trust and the
Distributor reserve the right to modify or terminate these services upon
reasonable notice. Broker/dealers may impose their own restrictions and limits
on accounts held through the broker/dealer. Please consult your broker/dealer
for account restriction and limit information.
EXCHANGES
Under certain circumstances, shares of any Phoenix-Zweig Fund may be
exchanged for shares of the same class of another Phoenix-Zweig Fund or other
Affiliated Phoenix Fund on the basis of the relative net asset values per share
at the time of the exchange. Exchanges are subject to the minimum initial
investment requirement of the designated Fund, except if made in connection with
the Systematic Exchange privilege. Shareholders may exchange shares held in
book-entry form for an equivalent number (value) of the same class of shares of
any other Phoenix-Zweig Fund or other Affiliated Phoenix Fund, if currently
offered. On exchanges with share classes that carry a contingent deferred sales
charge, the CDSC schedule of the original shares purchased continues to apply.
The exchange of shares is treated as a sale and purchase for federal income tax
purposes (see also "Dividends, Distributions and Taxes"). Exchange privileges
may not be available for all Phoenix Funds, and may be rejected or suspended.
SYSTEMATIC EXCHANGES
If the conditions above have been met, you or your broker may, by telephone
or written notice, elect to have shares exchanged for the same class of shares
of another Phoenix-Zweig Fund or other Affiliated Phoenix Fund automatically on
a monthly, quarterly, semiannual or annual basis or may cancel this privilege at
any time. If you maintain an account balance of at least $5,000, or $2,000 for
tax qualified retirement benefit plans (calculated on the basis of the net asset
value of the shares held in a single account), you may direct that shares be
automatically exchanged at predetermined intervals for shares of the same class
of another Phoenix-Zweig Fund. This requirement does not apply to Phoenix "Self
Security" program participants. Systematic exchanges will be executed upon the
close of business on the 10th day of each month or the next succeeding business
day. Systematic exchange forms are available from the Distributor. Exchanges
will be based upon each Fund's net asset value per share next computed after the
close of business on the 10th day of each month (or next succeeding business
day), without sales charge. Exchange privileges may not be available for all
Phoenix Funds, and may be rejected or suspended.
DIVIDEND REINVESTMENT ACROSS ACCOUNTS
If you maintain an account balance of at least $5,000, or $2,000 for tax
qualified retirement benefit plans (calculated on the basis of the net asset
value of the shares held in a single account), you may direct that any dividends
and distributions paid with respect to shares in that account be automatically
reinvested in a single account of one of the other Phoenix-Zweig Funds or other
Affiliated Phoenix Fund at net asset value. You should obtain a current
prospectus and consider the objectives and policies of each Fund carefully
before directing dividends and distributions to another Fund. Reinvestment
election forms and prospectuses are available from Equity Planning.
Distributions may also be mailed to a second payee and/or address. Requests for
directing distributions to an alternate payee must be made in writing with a
signature guarantee of the registered owner(s). To be effective with respect to
a particular dividend or distribution, notification of the new distribution
option must be received by the Transfer Agent at least three days prior to the
record date of such dividend or distribution. If all shares in your account are
repurchased or redeemed or transferred between the record date and the payment
date of a dividend or distribution, you will receive cash for the dividend or
distribution regardless of the distribution option selected.
INVEST-BY-PHONE
This expedited investment service allows a shareholder to make an investment
in an account by requesting a transfer of funds from the balance of their bank
account. Once a request is phoned in, Equity Planning will initiate the
transaction by wiring a request for monies to the shareholder's commercial bank,
savings bank or credit union via Automated Clearing House (ACH). The
shareholder's bank, which must be an ACH member, will in turn forward the monies
to Equity Planning for credit to the shareholder's account. ACH is a computer
based clearing and settlement operation established for the exchange of
electronic transactions among participating depository institutions.
To establish this service, please complete an Invest-by-Phone Application and
attach a voided check if applicable. Upon Equity Planning's acceptance of the
authorization form (usually within two weeks) shareholders may call toll free
(800) 367-5877 prior to 3:00 p.m. (New York time) to place their purchase
request. Instructions as to the account number and amount to be invested must be
communicated to Equity Planning. Equity Planning will then contact the
shareholder's bank via ACH with appropriate instructions. The purchase is
normally credited to the shareholder's account the day following receipt of the
verbal instructions. The Trust may delay the mailing of a check for redemption
proceeds of Trust shares purchased with a check or via Invest-by-Phone service
until the Trust has assured itself that good payment has been collected for the
purchase of the shares, which may take up to 15 days.
The Trust and Equity Planning reserve the right to modify or terminate the
Invest-by-Phone service for any reason or to institute charges for maintaining
an Invest-by-Phone account.
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SYSTEMATIC WITHDRAWAL PROGRAM
The Systematic Withdrawal Program allows you to periodically redeem a portion
of your account on a predetermined monthly, quarterly, semiannual or annual
basis. A sufficient number of full and fractional shares will be redeemed so
that the designated payment is made on or about the 20th day of the month.
Shares are tendered for redemption by the Transfer Agent, as agent for the
shareowner, on or about the 15th of the month at the closing net asset value on
the date of redemption. The Systematic Withdrawal Program also provides for
redemptions to be tendered on or about the 10th, 15th or 25th of the month with
proceeds to be directed through Automated Clearing House (ACH) to your bank
account. In addition to the limitations stated below, withdrawals may not be
less than $25 and minimum account balance requirements shall continue to apply.
Shareholders participating in the Systematic Withdrawal Program must own
shares of a Fund worth $5,000 or more, as determined by the then current net
asset value per share, and elect to have all dividends reinvested. The purchase
of shares while participating in the withdrawal program will ordinarily be
disadvantageous to the Class A Shares investor since a sales charge will be paid
by the investor on the purchase of Class A Shares at the same time as other
shares are being redeemed. For this reason, investors in Class A Shares may not
participate in an automatic investment program while participating in the
Systematic Withdrawal Program.
Through the Program, Class B and Class C shareholders may withdraw up to 1%
of their aggregate net investments (purchases, at initial value, to date net of
non-Program redemptions) each month or up to 3% of their aggregate net
investments each quarter without incurring otherwise applicable contingent
deferred sales charges. Class B and Class C shareholders redeeming more shares
than the percentage permitted by the withdrawal program will be subject to any
applicable contingent deferred sales charge on all shares redeemed. Accordingly,
the purchase of Class B or Class C Shares will generally not be suitable for an
investor who anticipates withdrawing sums in excess of the above limits shortly
after purchase.
HOW TO REDEEM SHARES
Under the 1940 Act, payment for shares redeemed must ordinarily be made
within seven days after tender. The right to redeem shares may be suspended and
payment therefore postponed during periods when the New York Stock Exchange is
closed, other than customary weekend and holiday closings, or if permitted by
rules of the Securities and Exchange Commission, during periods when trading on
the Exchange is restricted or during any emergency which makes it impracticable
for the Trust to dispose of its securities or to determine fairly the value of
its net assets or during any other period permitted by order of the Securities
and Exchange Commission for the protection of investors. Furthermore, the
Transfer Agent will not mail redemption proceeds until checks received for
shares purchased have cleared, which may take up to 15 days or more after
receipt of the check. See the Funds' current Prospectus for further information.
The Trust has authorized one or more brokers to accept on its behalf purchase
and redemption orders. Such brokers are authorized to designate other
intermediaries to accept purchase and redemption orders on the Trust's behalf.
The Trust will be deemed to have received a purchase or redemption order when an
authorized broker or, if applicable, a broker's authorized designee, accepts the
order. Customer orders will be priced at the Funds' net asset values next
computed after they are accepted by an authorized broker or the broker's
authorized designee.
Redemptions by Class B and Class C shareholders will be subject to the
applicable deferred sales charge, if any.
A shareholder should contact his/her broker/dealer if he/she wishes to
transfer shares from an existing broker/dealer street name account to a street
name account with another broker/dealer. The Fund has no specific procedures
governing such account transfers.
REDEMPTION OF SMALL ACCOUNTS
Each shareholder account in the Funds which has been in existence for at
least one year and has a value of less than $200 may be redeemed upon the giving
of not less than 60 days written notice to the shareholder mailed to the address
of record. During the 60-day period the shareholder has the right to add to the
account to bring its value to $200 or more. See the Funds' current Prospectus
for more information.
BY MAIL
Shareholders may redeem shares by making a written request, executed in the
full name of the account, directly to Phoenix-Zweig Funds, c/o State Street Bank
and Trust Company, P.O. Box 8301, Boston, MA 02266-8301. However, when
certificates for shares are in the possession of the shareholder, they must be
mailed or presented, duly endorsed in the full name of the account, with a
written request to Equity Planning that the Trust redeem the shares. See the
Funds' current Prospectus for more information.
TELEPHONE REDEMPTIONS
Shareholders who do not have certificated shares may redeem up to $50,000
worth of their shares by telephone. See the Funds' current Prospectus for
additional information.
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BY CHECK (GOVERNMENT AND GOVERNMENT CASH FUNDS ONLY)
Any shareholder of these Funds may elect to redeem shares held in his/her
Open Account by check. Checks will be sent to an investor upon receipt by Equity
Planning of a completed application and signature card (attached to the
application). If the signature card accompanies an individual's initial account
application, the signature guarantee section of the form may be disregarded.
However, the Trust reserves the right to require that all signatures be
guaranteed prior to the establishment of a check writing service account. When
an authorization form is submitted after receipt of the initial account
application, all signatures must be guaranteed regardless of account value.
Checks may be drawn payable to any person in an amount of not less than $500,
provided that immediately after the payment of the redemption proceeds the
balance in the shareholder's Open Account is $500 or more.
When a check is presented to Equity Planning for payment, a sufficient number
of full and fractional shares in the shareholder's Open Account will be redeemed
to cover the amount of the check. The number of shares to be redeemed will be
determined on the date the check is received by the Transfer Agent. Presently
there is no charge to the shareholder for the check writing service, but this
may be changed or modified in the future upon two weeks written notice to
shareholders. Checks drawn from Class B and Class C accounts are subject to the
applicable deferred sales charge, if any.
The checkwriting procedure for redemption enables a shareholder to receive
income accruing on the shares to be redeemed until such time as the check is
presented to Equity Planning for payment. Inasmuch as canceled checks are
returned to shareholders monthly, no confirmation statement is issued at the
time of redemption.
Shareholders utilizing withdrawal checks will be subject to Equity Planning's
rules governing checking accounts. A shareholder should make sure that there are
sufficient shares in his Open Account to cover the amount of any check drawn. If
insufficient shares are in the account and the check is presented to Equity
Planning on a banking day on which the Trust does not redeem shares (for
example, a day on which the New York Stock Exchange is closed), or if the check
is presented against redemption proceeds of an investment made by check which
has not been in the account for at least fifteen calendar days, the check may be
returned marked "non-sufficient Funds" and no shares will be redeemed. A
shareholder may not close his account by a withdrawal check because the exact
value of the account will not be known until after the check is received by
Equity Planning.
REDEMPTION IN KIND
To the extent consistent with state and federal law, the Funds may make
payment of the redemption price either in cash or in kind. However, the Funds
have elected to pay in cash all requests for redemption by any shareholder of
record, limited in respect to each shareholder during any 90-day period to the
lesser of $250,000 or 1% of the net asset value of the Funds at the beginning of
such period. This election has been made pursuant to Rule 18f-1 under the
Investment Company Act of 1940 and is irrevocable while the Rule is in effect
unless the Securities and Exchange Commission, by order, permits the withdrawal
thereof. In case of a redemption in kind, securities delivered in payment for
shares would be readily marketable and valued at the same value assigned to them
in computing the net asset value per share of a Fund. A shareholder receiving
such securities would incur brokerage costs when he sold the securities.
ACCOUNT REINSTATEMENT PRIVILEGE
Shareholders who may have overlooked features of their investment at the time
they redeemed have a privilege of reinvestment of their investment at net asset
value. See the Funds' current Prospectus for more information.
TAX SHELTERED RETIREMENT PLANS
Shares of the Trust are offered in connection with the following qualified
prototype retirement plans: IRA, Rollover IRA, SEP-IRA, SIMPLE IRA, Roth IRA,
401(k), Profit-Sharing, Money Purchase Pension Plans and 403(b) Retirement
Plans. Write or call Equity Planning (800) 243-4361 for further information
about the plans.
MERRILL LYNCH DAILY K PLAN
Class A Shares of a Fund are made available to Merrill Lynch Daily K Plan
(the "Plan") participants at NAV without an initial sales charge if:
(i) the Plan is recordkept on a daily valuation basis by Merrill Lynch and,
on the date the Plan Sponsor signs the Merrill Lynch Recordkeeping Service
Agreement, the Plan has $3 million or more in assets invested in broker/dealer
funds not advised or managed by Merrill Lynch Asset Management L.P. ("MLAM")
that are made available pursuant to a Service Agreement between Merrill Lynch
and the fund's principal underwriter or distributor and in funds advised or
managed by MLAM (collectively, the "Applicable Investments");
(ii) the Plan is recordkept on a daily valuation basis by an independent
recordkeeper whose services are provided through a contract or alliance
arrangement with Merrill Lynch, and, on the date the Plan Sponsor signs the
Merrill Lynch Recordkeeping Service Agreement, the Plan has $3 million or more
in assets, excluding money market funds, invested in Applicable Investments; or
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(iii) the Plan has 500 or more eligible employees, as determined by a Merrill
Lynch plan conversion manager, on the date the Plan Sponsor signs the Merrill
Lynch Recordkeeping Service Agreement.
Alternatively, Class B Shares of a Fund are made available to Plan
participants at NAV without a CDSC if the Plan conforms with the requirements
for eligibility set forth in (i) through (iii) above but either does not meet
the $3 million asset threshold or does not have 500 or more eligible employees.
Plans recordkept on a daily basis by Merrill Lynch or an independent
recordkeeper under a contract with Merrill Lynch that are currently investing in
Class B Shares of a Fund convert to Class A Shares once the Plan has reached $5
million invested in Applicable Investments, or after the normal holding period
of seven years from the initial date of purchase.
DIVIDENDS, DISTRIBUTIONS AND TAXES
TAX STATUS
Each Fund of the Trust will be treated as a separate corporation for purposes
of the Internal Revenue Code of 1986, as amended (the Code) (except for purposes
of the definitional requirements for regulated investment companies under Code
Section 851(a)). By paying dividends representing its investment company taxable
income within the time periods specified in the Code and by meeting certain
other requirements, each Fund intends to qualify as a regulated investment
company under the Code. Since each Fund intends to distribute at least annually
its investment company taxable income, net capital gains, and capital gain net
income, it will not be subject to income or excise taxes otherwise applicable to
undistributed income of a regulated investment company. If a Series were to fail
to distribute all its income and gains, it would be subject to income tax and,
in certain circumstances, a 4% excise tax.
TAXATION OF SHAREHOLDERS
Dividends from net investment income and distributions from short-term
capital gains are taxable to shareholders as ordinary income. Distributions from
net capital gains that are properly designated as capital gains dividends are
taxable to shareholders as long-term capital gains regardless of the length of
time the shares in respect of which such distributions are received have been
held.
Dividends from Phoenix-Zweig Government Cash Fund and the Phoenix-Zweig
Government Fund are not expected to qualify for the 70% dividends received
deduction available to corporate shareholders. Phoenix-Zweig Government Cash
Fund's dividends include all accrued interest, earned discounts and realized
gains and losses, less amortized premiums and accrued expenses. Distributions by
other Funds out of their dividend income from domestic corporations may qualify
in whole or in part for the deduction if the distributing Fund does not sell the
stock in respect of which it received such dividends before satisfying a 46-day
holding period requirement (91 days for certain preferred stock), and the
shareholder holds his Trust shares in the distributing Fund for at least 46
days. For this purpose, the distributing Fund holding period in such stock may
be reduced for periods during which the Fund reduces its risk of loss from
holding the stock (e.g., by entering into option contracts).
Investors who purchase shares shortly before the record date for a
distribution will pay a share price that includes the value of the anticipated
distribution and will be taxed on the distribution when it is received even
though with respect to them the distribution represents in effect a return of a
portion of their purchase price. Any loss realized on a sale or exchange of
shares will be disallowed if the shares disposed of are replaced within a period
of 61 days beginning 30 days before the shares are sold or exchanged. If
disallowed, the loss will be reflected in an adjustment to the basis of the
shares acquired.
Individuals and certain other non-exempt payees will be subject to a 31%
backup Federal withholding tax on dividends and other distributions from the
Funds, as well as on the proceeds of redemptions of Funds other than the
Phoenix-Zweig Government Cash Fund, if the affected Fund is not provided with
the shareholder's correct taxpayer identification number and certification that
the shareholder is not subject to such backup withholding, or if the Internal
Revenue Service notifies such Fund that the shareholder has failed to report
proper interest or dividends. For most individuals, the taxpayer identification
number is the taxpayer's social security number.
TAX TREATMENT OF CERTAIN TRANSACTIONS
In general, and as explained more fully below, if the Trust enters into
combinations of investment positions by virtue of which its risk of loss from
holding an investment position is reduced on account of one (or more) other
positions (i) losses realized on one position may be deferred to the extent of
any unrecognized gain on another position and (ii) long-term capital gains or
short-term capital losses may be recharacterized, respectively, as short-term
gains and long-term losses. Investments in foreign currency denominated
instruments or securities may generate, in whole or in part, ordinary income or
loss. The Federal income tax treatment of gains and losses realized from
transactions involving options on stock or securities entered into by a Fund
will be as follows: Gain or loss from a closing transaction with respect to
options written by a Fund, or gain from the lapse of any such option, will be
treated as short-term capital gain or loss. Gain or loss from the sale of put
and call options that a Fund purchases, and loss attributable to
22
<PAGE>
the lapse of such options, will be treated as capital gain or loss. The capital
gain or loss will be long- or short-term depending on whether or not the
affected option has been held for more than one year. For this purpose, an
unexercised option will be deemed to have been sold on the date it expired. It
should be noted, however, that if a put is acquired at a time when the
underlying stock or security has been held for not more than one year, or if
shares of the underlying stock or security are acquired while such put is held,
any gain on the subsequent exercise, sale or expiration of the put will
generally be short-term gain.
Any regulated futures contract or listed non-equity option held by a Fund at
the close of its taxable year will be treated as sold for its fair market value
on the last business day of such taxable year. Sixty percent of any gain or loss
with respect to such deemed sales, as well as the gain or loss from the
termination during the taxable year of the Fund's obligation (or rights) with
respect to such contracts by offsetting, by taking or making delivery, by
exercise or being exercised, by assignment or being assigned, by lapse, or
otherwise, will be treated as long-term capital gain or loss and the remaining
forty percent will be treated as short term capital gain or loss. A Fund may
make certain elections that modify the above tax treatment with respect to
regulated futures contracts or listed non-equity options that are part of a
mixed straddle, as defined by the Code.
The Trust may invest in certain investments that may cause it to realize
income prior to the receipt of cash distributions, including securities bearing
original issue discount. The level of such investments is not expected to affect
a Fund's ability to distribute adequate income to qualify as a regulated
investment company.
Treasury Regulations pursuant to Section 1092 provide for the coordination of
the wash sale rules and the short sale rules with the straddle rules. Generally,
the wash sale rules prevent the recognition of loss where a position is sold at
a loss and a substantially identical position is acquired within a prescribed
period. The short sale rules generally prevent the use of short sales to convert
short-term capital gain to long-term capital gain and long-term capital loss to
short-term capital loss.
In addition to the Federal income tax consequences described above relating
to an investment in the Trust, there may be other Federal, state, local or
foreign tax considerations that depend upon the circumstances of each particular
investor. Prospective shareholders are therefore urged to consult their tax
advisers with respect to the effects of this investment on their specific
situations.
THE DISTRIBUTOR
Pursuant to its Distribution Agreement with the Trust (the "Distribution
Agreement"), Phoenix Equity Planning Corporation ("Equity Planning" or the
"Distributor") acts as distributor of the Trust's shares and receives: with
respect to Class A Shares, a front-end sales commission, as described in the
Prospectus under "Sales Charges," and a 1% CDSC which may apply on redemptions
within 12 months of purchases not subject to a sales charge; with respect to
Class B Shares, a declining CDSC ranging from 5% to 1% of the gross proceeds of
a redemption of shares held for less than seven years; and, with respect to
Class C Shares, a CDSC of 1.25% of the gross proceeds of a redemption of shares
held for less than one year. The Distributor also is compensated under the Rule
12b-1 distribution plans as described more fully below.
Equity Planning has undertaken to use its best efforts to find purchasers for
shares of the Trust. Shares of each Fund are offered on a continuous basis.
Pursuant to distribution agreements for each class of shares or distribution
method, the Distributor will purchase shares of the Trust for resale to the
public, either directly or through securities dealers or agents, and is
obligated to purchase only those shares for which it has received purchase
orders. Equity Planning may also sell Trust shares pursuant to sales agreements
entered into with bank-affiliated securities brokers who, acting as agent for
their customers, place orders for Trust shares with Equity Planning. If, because
of changes in law or regulations, or because of new interpretations of existing
law, it is determined that agency transactions of bank-affiliated securities
brokers are not permitted, the Trustees will consider what action, if any, is
appropriate. It is not anticipated that termination of sales agreements with
bank-affiliated securities brokers would result in a loss to their customers or
a change in the net asset value per share of a Fund.
For its services under the Distribution Agreement, the Distributor receives
sales charges on transactions in Fund shares and retains such charges less the
portion thereof allowed to its registered representatives and to securities
dealers and securities brokers with whom it has sales agreements. In addition,
the Distributor may receive payments from the Fund pursuant to the Distribution
Plans described below. PXP Securities Corp., formerly known as Zweig Securities
Corp., served as the distributor for the Trust prior to March 1, 1999. For the
fiscal years ended December 31, 1997, 1998 and 1999, purchasers of shares of the
Funds paid aggregate sales charges of $1,067,868, $929,426 and $886,545,
respectively, of which PXP Securities Corp. and/or the Distributor received net
commissions of $829,203, $1,048,587 and $1,875,311, respectively for its
services, the balance being paid to dealers. For the fiscal year ended December
31, 1999, PXP Securities Corp. and/or the Distributor received net commissions
of $29,127 for Class A Shares and deferred sales charges of $1,846,184 for Class
A, Class B and Class C Shares.
23
<PAGE>
DEALER CONCESSIONS
Dealers with whom the Distributor has entered into sales agreements receive a
discount or commission as set forth below.
<TABLE>
<CAPTION>
CLASS A SHARES-- ALL FUNDS (EXCEPT THE GOVERNMENT AND GOVERNMENT CASH FUNDS)
DEALER DISCOUNT
SALES CHARGE SALES CHARGE OR AGENCY FEE
AMOUNT OF TRANSACTION AS PERCENTAGE AS PERCENTAGE AS PERCENTAGE OF
AT OFFERING PRICE OF OFFERING PRICE OF AMOUNT INVESTED OFFERING PRICE
----------------- ----------------- ------------------ --------------
<S> <C> <C> <C> <C>
Less than $50,000 5.75% 6.10% 5.25%
$50,000 but under $100,000 4.75% 4.99% 4.25%
$100,000 but under $250,000 3.75% 3.90% 3.25%
$250,000 but under $500,000 2.75% 2.83% 2.25%
$500,000 but under $1,000,000 2.00% 2.04% 1.75%
$1,000,000 or more None None None
CLASS A SHARES -- GOVERNMENT FUND
DEALER DISCOUNT
SALES CHARGE SALES CHARGE OR AGENCY FEE
AMOUNT OF TRANSACTION AS PERCENTAGE AS PERCENTAGE AS PERCENTAGE OF
AT OFFERING PRICE OF OFFERING PRICE OF AMOUNT INVESTED OFFERING PRICE
----------------- ----------------- ------------------ --------------
Less than $50,000 4.75% 4.99% 4.25%
$50,000 but under $100,000 4.50% 4.71% 4.00%
$100,000 but under $250,000 3.50% 3.63% 3.00%
$250,000 but under $500,000 2.75% 2.83% 2.25%
$500,000 but under $1,000,000 2.00% 2.04% 1.75%
$1,000,000 or more None None None
</TABLE>
Class A Shares of the Government Cash Fund are offered to the public at their
constant net asset value of $1.00 per share with no sales charge or dealer
discount.
In addition to the dealer discount on purchases of Class A Shares, the
Distributor intends to pay investment dealers a sales commission of 4% of the
sale price of Class B Shares and a sales commission of 1% of the sale price of
Class C Shares sold by such dealers. This sales commission will not be paid to
dealers for sales of Class B or Class C Shares purchased by 401(k) participants
of the Merrill Lynch Daily K Plan (the "Plan") due to waiver of the CDSC for
these Plan participants' purchases. There is no dealer compensation payable on
Class I Shares. Your broker, dealer or investment adviser may also charge you
additional commissions or fees for their services in selling shares to you
provided they notify the Distributor of their intention to do so.
Dealers and other entities who enter into special arrangements with the
Distributor may receive compensation for the sale and promotion of shares of the
Funds and/or for providing other shareholder services. Such fees are in addition
to the sales commissions referenced above and may be based upon the amount of
sales of fund shares by a dealer; the provision of assistance in marketing of
fund shares; access to sales personnel and information dissemination services;
provision of recordkeeping and administrative services to qualified employee
benefit plans; and other criteria as established by the Distributor. Depending
on the nature of the services, these fees may be paid either from the Funds
through distribution fees, service fees or transfer agent fees or in some cases,
the Distributor may pay certain fees from its own profits and resources. From
its own profits and resources, the Distributor does intend to: (a) sponsor
training and educational meetings and provide additional compensation to
qualifying dealers in the form of trips, merchandise or expense reimbursements;
(b) from time to time pay special incentive and retention fees to qualified
wholesalers, registered financial institutions and third party marketers; (c)
pay broker/dealers an amount equal to 1% of the first $3 million of Class A
Share purchases by an account held in the name of a qualified employee benefit
plan with at least 100 eligible employees, 0.50% on the next $3 million, plus
0.25% on the amount in excess of $6 million; and (d) excluding purchases as
described in (c) above, pay broker/dealers an amount equal to 1% of the amount
of Class A Shares sold above $1 million but under $3 million, 0.50% on the next
$3 million, plus 0.25% on the amount in excess of $6 million. If part or all of
such investment as described in (c) and (d) above, including investments by
qualified employee benefit plans, is subsequently redeemed within one year of
the investment date, a 1% CDSC will apply, except for redemptions of shares
purchased by an investor in amounts of $1 million or more where such investor's
dealer of record, due to the nature of the investor's account, notifies the
distributor prior to the time of the investment that the dealer waives the
commission otherwise payable to the dealer, or agrees to receive such
commissions ratably over a 12 month period. In addition, the Distributor may pay
the entire applicable sales charge on purchases of Class A Shares to selected
dealers and agents. Any dealer who receives more than 90% of a sales charge may
be deemed to be an "underwriter" under the Securities Act of 1933. Equity
Planning reserves the right to discontinue or alter such fee payment plans at
any time.
From its own resources or pursuant to the Plan, and subject to the dealers'
prior approval, the Distributor may provide additional compensation to
registered representatives of dealers in the form of travel expenses, meals, and
lodging associated with training and
24
<PAGE>
educational meetings sponsored by the distributor. The Distributor may also
provide gifts amounting in value to less than $100, and occasional meals or
entertainment, to registered representatives of dealers. Any such travel
expenses, meals, lodging, gifts or entertainment paid will not be preconditioned
upon the registered representatives' or dealers' achievement of a sales target.
The Distributor may, from time to time, reallow the entire portion of the sales
charge on class A shares which it normally retains to individual selling
dealers. However, such additional reallowance generally will be made only when
the selling dealer commits to substantial marketing support such as internal
wholesaling through dedicated personnel, internal communications and mass
mailings.
ADMINISTRATIVE SERVICES
Effective November 1, 1999, Equity Planning also acts as administrative agent
of the Fund and as such performs administrative, bookkeeping and pricing
functions for the Fund. For its services, Equity Planning is entitled to a fee
payable monthly and based upon the average of the aggregate daily net asset
value of the Fund, at the following incremental annual rates:
First $50 million .07%
$50 million to $200 million .06%
Greater than $200 million .01%
Equity Planning retains PFPC, Inc. as subagent for the Fund. For services
during the Fund's fiscal year ended December 31, 1999, Equity Planning and/or
Bank of New York, the previous administrative agent, received $560,135 under an
administration agreement that provided for compensation at the same rates as
described above.
DISTRIBUTION PLANS
The Trust has adopted a distribution plan for each class of shares of each
Fund except Class I Shares (i.e., a plan for the Class A and C Shares and a plan
for the Class B Shares; collectively, the "Plans") in accordance with Rule 12b-1
under the Act, to compensate the Distributor for the services it provides and
for the expenses it bears under the Distribution Agreement. Each class of shares
of each Fund (other than Class M Shares of the Government Cash Fund and Class I
Shares) pays a service fee at a rate of 0.25% per annum of the average daily net
assets of such class of the Fund and a distribution fee based on average daily
net assets at the following rates: for Class A Shares of all Funds at a rate of
0.05% per annum; for Class B Shares of all Funds at a rate of 0.75% per annum;
for Class C Shares at a rate of 0.75% per annum for the Appreciation Fund,
Strategy Fund, Growth & Income Fund, Managed Assets and Foreign Equity Fund,
0.50% per annum for the Government Fund and 0.05% per annum for the Government
Cash Fund.
The Rule 12b-1 Plan for the Class M Shares issued by Zweig Government Cash
Fund (the "Class M Plan") provides that the Distributor may enter into Service
Agreements with securities dealers, financial institutions, banks, and other
industry professionals for distribution, promotion and administration of and/or
servicing investors in Class M Shares. Such service organizations are paid
directly or indirectly by Zweig Government Cash Fund and the Manager. Service
payments under the Class M Plan are paid in equal amounts by Zweig Government
Cash Fund and the Manager, or Zweig Government Cash Fund and the Manager
reimburse the Distributor equally for service payments to a service
organization, in an amount not exceeding 0.30% per annum of the average daily
net asset value of the Class M Shares. The Class M Plan also provides that Zweig
Government Cash Fund will pay the costs and expenses connected with the printing
and distribution of Zweig Government Cash Fund's prospectuses, shareholder
reports, and any promotional material for other than current Fund shareholders,
in an amount not to exceed $100,000 per annum.
From the Service Fee the Distributor expects to pay a quarterly fee to
qualifying broker/dealer firms, as compensation for providing personal services
and/or the maintenance of shareholder accounts, with respect to shares sold by
such firms. This fee will not exceed on an annual basis 0.25% of the average
annual net asset value of such shares, and will be in addition to sales charges
on Fund shares which are reallowed to such firms. To the extent that the entire
amount of the Service Fee is not paid to such firms, the balance will serve as
compensation for personal and account maintenance services furnished by the
Distributor. The Distributor also pays to dealers as additional compensation
with respect to Class C Shares, 0.75% of the average annual net asset value of
that class.
A report of the amounts expended under the Plans must be made to the Board of
Trustees and reviewed by the Board at least quarterly. In addition, the Plans
provide that they may not be amended to increase materially the costs which the
Trust may bear for distribution pursuant to the Plans without shareholder
approval and that other material amendments to the Plans must be approved by a
majority of the Board, including a majority of the Board who are neither
interested persons of the Trust (as defined in the 1940 Act) nor have any direct
or indirect financial interest in the operation of the Plans (the "Qualified
Trustees"), by vote cast in person at a meeting called for the purpose of
considering such amendments.
The Plans are subject to annual approval by a majority of the Board of
Trustees, including a majority of the Qualified Trustees, by vote cast in person
at a meeting called for the purpose of voting on the Plans. The Plans are
terminable at any time by vote of a majority of the Qualified Trustees or, with
respect to any Class or Fund, by vote of a majority of the shares of such Class
or Fund. Pursuant to the Plans, any new trustees who are not interested persons
must be nominated by existing trustees who are not
25
<PAGE>
interested persons. If the Plans are terminated (or not renewed) with respect to
one or more Classes or Funds, they may continue in effect with respect to any
Class or Fund as to which they have not been terminated (or have not been
renewed).
Benefits from the Plans may accrue to the Trust and its shareholders from the
growth in assets due to sales of shares to the public pursuant to the Plans.
Increases in a Fund's net assets from sales pursuant to its Plan may benefit
shareholders by reducing per share expenses, permitting increased investment
flexibility and diversification of the Fund's assets, and facilitating economies
of scale (e.g., block purchases) in the Fund's securities transactions. Under
their terms, the Plans will continue from year to year, provided that such
continuance is approved annually by a vote of the Trustees in the manner
described above. In making its determination to continue the Plans, the Board
considers, among other factors: (1) the Trust's experience under the Plans and
the previous Rule 12b-1 Plans of the Trust, and whether such experience
indicates that the Plans would operate as anticipated; (2) the benefits the
Trust had obtained under the Plans and would be likely to obtain under the
Plans; (3) what services would be provided under the Plans by the Distributor to
the Trust and its shareholders; and (4) the reasonableness of the fees to be
paid to the Distributor for its services under the Plans. Based upon their
review, the Board, including each of the Qualified Trustees, determined that the
continuance of the Plans would be in the best interest of the Trust, and that
there was a reasonable likelihood that the Plans would benefit the Trust and its
shareholders. In the Board's quarterly review of the Plans, they will consider
their continued appropriateness and the level of compensation provided therein.
The Board of Trustees has the right to terminate the Rule 12b-1 Plan for the
Class B Shares, and in the event of such termination, no further payments would
be made thereunder. However, in the event the Board of Trustees were to
terminate the Rule 12b-1 Plan for the Class B Shares for any Fund, the Trust may
not thereafter adopt a new Rule 12b-1 Plan for a class of that Fund having, in
the good faith determination of the Board of Trustees, substantially similar
economic characteristics to the Class B Shares. Termination of the Rule 12b-1
Plan for the Class B Shares or the Distribution Agreement does not affect the
obligation of the Class B shareholders to pay CDSCs. The Distributor has sold
its right to receive certain payments under the Distribution Agreement to a
financial institution in order to finance the distribution of the Class B
Shares.
For the fiscal year ended December 31, 1999, the Trust paid Rule 12b-1 fees
in the amount of $11,889,970, of which the Distributor and the previous
distributor, PXP Securities Corp., an affiliate, received $10,234,219 and
unaffiliated broker-dealers received $1,655,751. The 12b-1 payments were used
for (1) compensating dealers, $10,234,219, (2) compensating sales personnel,
$2,557,889, (3) advertising, $251,320, (4) printing and mailing of prospectuses
to other than current shareholders, $1,787,967, (5) service costs, $461,467, and
(6) other, $28,951.
Because all amounts paid pursuant to the Plans are paid to the Distributor,
the Distributor and its officers, directors and employees, all may be deemed to
have a direct or indirect financial interest in the operation of the Plans. None
of the Trustees who is not an interested person of the Trust has a direct or
indirect financial interest in the operation of the Plans.
The Board of Trustees has also adopted a Rule 18f-3 Multi-Class Share Plan
permitting the issuance of shares in multiple classes.
MANAGEMENT OF THE TRUST
The Trustees have responsibility for management of the business of the Trust.
The officers of the Trust are responsible for its day to day operations. Set
forth below is certain information concerning the Trustees and officers.
TRUSTEES AND OFFICERS
<TABLE>
<CAPTION>
POSITION WITH
NAME, ADDRESS AND AGE THE TRUST PRINCIPAL OCCUPATION DURING PAST 5 YEARS
--------------------- --------- ----------------------------------------
<S> <C> <C>
James Balog (71) Trustee Retired; Director and Member of the Audit, Investment, Stock
2205 N. Southwinds Blvd. Option and Compensation Committees of Transatlantic Holdings,
Vero Beach, FL 32963 Inc. (reinsurance); Director and Member of the Executive
Committee of Elan, Plc (pharmaceuticals); Director and Member
of the Executive and Investment & Credit Committees of Great
West Life and Annuity Insurance Company; Trustee of the
Phoenix-Euclid Funds. Former Director, Chairman of the Audit
Committee and Member of the Executive Committee of A.L. Pharma,
Inc. (health care); Chairman of 1838 Investment Advisors, L.P.
and Chairman of Lambert Brussels Capital Corporation
(investments). Former Member of the Technical Advisory Board of
Galen Partners (health care).
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
POSITION WITH
NAME, ADDRESS AND AGE THE TRUST PRINCIPAL OCCUPATION DURING PAST 5 YEARS
--------------------- --------- ----------------------------------------
<S> <C> <C>
Claire B. Benenson (81) Trustee Consultant on Financial Conferences, The New School for Social
870 U.N. Plaza Research. Director of The Burnham Fund Inc. and Trustee of the
New York, NY 10017 Phoenix-Euclid Funds. President of the Money Marketeers of New
York University. Trustee of Simms Global Fund. Former Director
of Zweig Cash Fund Inc. and Director of Financial Conferences
and Chairman, Department of Business and Financial Affairs, The
New School for Social Research.
S. Leland Dill (69) Trustee Trustee and Chairman of the Audit Committee of Deutsche Asset
5070 North Ocean Dr. Management mutual funds. Trustee, Phoenix-Euclid Funds. Former
Singer Island, FL 33404 Director and Chairman of the Audit Committee of Coutts & Co.
Trust Holdings Limited, Coutts & Co. Group, Coutts & Co.
International (USA) (private banking). Former partner of Peat
Marwick Mitchell & Co. and Director of Zweig Cash Fund Inc. and
Vintners International Company, Inc. (winery).
*Philip R. McLoughlin (54) Trustee Chairman (1997-present), Director (1995-present), Vice Chairman
56 Prospect Street (1995-1997) and Chief Executive Officer (1995-present), Phoenix
Hartford, CT 06115 Investment Partners, Ltd. Director (1994-present) and Executive
Vice President, Investments (1998-present), Phoenix Home Life
Mutual Insurance Company. Director/Trustee and President, Phoenix
Funds (1989-present). Trustee and President, Phoenix-Aberdeen
Series Fund and Phoenix Duff & Phelps Institutional Mutual Funds
(1996-present). Director, Duff & Phelps Utilities Tax-Free Income
Inc. (1995-present) and Duff & Phelps Utility and Corporate Bond
Trust Inc. (1995-present). Trustee, Phoenix-Seneca Funds
(1999-present). Chairman, Phoenix-Zweig Trust (2000-present).
Director (1983-present) and Chairman (1995-present), Phoenix
Investment Counsel, Inc. Director (1984-present) and President
(1990-1999), Phoenix Equity Planning Corporation. Chairman and
Chief Executive Officer, Phoenix/Zweig Advisers LLC
(1999-present). Director, PXRE Corporation (Delaware)
(1985-present) and World Trust Fund (1991-present). Director and
Executive Vice President, Phoenix Life and Annuity Company
(1996-present). Director and Executive Vice President, PHL
Variable Insurance Company (1995-present). Director, Phoenix
Charter Oak Trust Company (1996-present). Director and Vice
President, PM Holdings, Inc. (1985-present). Director
(1992-present) and President (1992-1994), W.S. Griffith & Co.,
Inc. Director, PHL Associates Inc. (1995-present).
Donald B. Romans (69) Trustee President of Romans & Company, (private investors and financial
233 East Wacker Dr. consultants); Director of the Burnham Fund Inc. and Trustee of
Chicago, IL 60601 the Phoenix-Euclid Funds. Former Consultant to and Executive
Vice President and Chief Financial Officer of Bally
Manufacturing Corporation, and Director of Zweig Cash Fund Inc.
</TABLE>
27
<PAGE>
<TABLE>
<CAPTION>
POSITION WITH
NAME, ADDRESS AND AGE THE TRUST PRINCIPAL OCCUPATION DURING PAST 5 YEARS
--------------------- --------- ----------------------------------------
<S> <C> <C>
Martin E. Zweig (58) President President of the Subadviser; President of Phoenix-Euclid Funds;
900 Third Avenue Chairman of the Board and President of The Zweig Total Return
New York, NY 10022 Fund, Inc. and The Zweig Fund, Inc.; Managing Director of
Zweig-DiMenna Associates LLC; President of Zweig-DiMenna
International Managers, Inc.; Zweig-Di Menna Associates, Inc.
and Gotham Advisors, Inc.; Member of the Undergraduate
Executive Board of the Wharton School, University of
Pennsylvania; Trustee, Manhattan Institute. Former President of
Zweig Cash Fund Inc. Former President and Director of Zweig
Advisors Inc., Zweig Total Return Advisors, Inc. and Zweig
Securities Advisory Services Inc. General Partner of Zweig
Katzen Investors, L.P.; Former Chairman of the Adviser and
Euclid Advisors LLC.
Michael E. Haylon (42) Executive Vice Director and Executive Vice President--Investments, Phoenix
56 Prospect Street President Investment Partners, Ltd. (1995-present). Executive Vice
Hartford, CT 06115 President, Phoenix/Zweig Advisers LLC (1999-present). Director
(1994-present), President (1995-present), Executive Vice
President (1994-1995), Vice President (1991-1994), Phoenix
Investment Counsel, Inc. Director, Phoenix Equity Planning
Corporation (1995-present). Executive Vice President, Phoenix
Funds (1993-present), Phoenix-Aberdeen Series Fund
(1996-present) and Phoenix-Seneca Funds (2000-present).
Executive Vice President (1997-present), Vice President
(1996-1997), Phoenix Duff & Phelps Institutional Mutual Funds.
Senior Vice President, Securities Investments, Phoenix Home
Life Mutual Insurance Company (1993-1995).
William R. Moyer (56) Executive Vice Executive Vice President and Chief Financial Officer
56 Prospect Street President (1999-present), Senior Vice President and Chief Financial
Hartford, CT 06115 Officer, Phoenix Investment Partners, Ltd. (1995-1999).
Director (1998-present), Senior Vice President, Finance
(1990-present), Chief Financial Officer (1996-present), and
Treasurer (1994-1996 and 1998-present), Phoenix Equity Planning
Corporation. Director (1998-present), Senior Vice President
(1990-present), Chief Financial Officer (1996-present) and
Treasurer (1994-present), Phoenix Investment Counsel, Inc.
Senior Vice President and Chief Financial Officer, Duff &
Phelps Investment Management Co. (1996-present). Vice
President, Phoenix Funds (1990-present), Phoenix-Duff & Phelps
Institutional Mutual Funds (1996-present), Phoenix-Aberdeen
Series Fund (1996-present). Executive Vice President,
Phoenix-Seneca Funds (2000-present). Senior Vice President and
Chief Financial Officer, W.S. Griffith & Co., Inc. (1992-1995)
and Townsend Financial Advisers, Inc. (1993-1995).
John F. Sharry (48) Executive Vice President, Retail Division (1999-present), Executive Vice
56 Prospect Street President President, Retail Division (1997-1999), Phoenix Investment
Hartford, CT 06115 Partners, Ltd. Managing Director, Retail Distribution, Phoenix
Equity Planning Corporation (1995-1997). Executive Vice
President, Phoenix Funds, Phoenix-Aberdeen Series Funds
(1998-present) and Phoenix-Seneca Funds (2000-present).
Managing Director, Director and National Sales Manager, Putnam
Mutual Funds (1992-1995).
</TABLE>
28
<PAGE>
<TABLE>
<CAPTION>
POSITION WITH
NAME, ADDRESS AND AGE THE TRUST PRINCIPAL OCCUPATION DURING PAST 5 YEARS
--------------------- --------- ----------------------------------------
<S> <C> <C>
Carlton Neel (32) Senior Vice President First Vice President of Phoenix/Zweig Advisers LLC. Former Vice
900 Third Avenue President of Zweig Advisors Inc. and Zweig Total Return
New York, NY 10022 Advisors, Inc. Former Vice President of J.P. Morgan & Co., Inc.
Barry Mandinach (44) First Vice President Executive Vice President of PXP Securities Corp., Senior Vice
900 Third Avenue President of Phoenix/Zweig Advisers LLC. and Euclid Advisors
New York, NY 10022 LLC, and First Vice President of the Phoenix-Euclid Funds.
Beth Abraham (44) Assistant Vice President Assistant Vice President of Phoenix/Zweig Advisers LLC and the
900 Third Avenue Phoenix-Euclid Funds. Former self-employed consultant to the
New York, NY 10022 mutual fund industry.
David O'Brien (35) Assistant Vice President Assistant Vice President of Phoenix-Euclid Funds. Assistant
900 Third Avenue Portfolio Manager of Phoenix-Euclid Market Neutral Fund, the
New York, NY 10022 Phoenix-Zweig Strategy Fund, Phoenix-Zweig Appreciation Fund
and Phoenix-Zweig Growth & Income Fund. Formerly, Assistant
Vice President, PaineWebber (1993-1998).
Marc Baltuch (55) Secretary Director and President of Watermark Securities, Inc. Secretary
900 Third Avenue of Phoenix-Euclid Funds; Assistant Secretary of Gotham
New York, NY 10022 Advisors, Inc. Former First Vice President of the Phoenix/Zweig
Advisers LLC and of Phoenix-Euclid Advisors LLC; Secretary of
Zweig Cash Fund Inc. Former First Vice President, Chief
Compliance Officer and Secretary of PXP Securities Corp.
Nancy G. Curtiss (48) Treasurer Vice President, Fund Accounting (1994-2000) and Treasurer
56 Prospect Street (1996-2000), Phoenix Equity Planning Corporation. Treasurer,
Hartford, CT 06115 Phoenix Funds (1994-present), Phoenix Duff & Phelps
Institutional Mutual Funds (1996-present), Phoenix-Aberdeen
Series Fund (1996-present), and Phoenix-Seneca Funds
(2000-present). Second Vice President and Treasurer, Fund
Accounting, Phoenix Home Life Mutual Insurance Company
(1994-1995).
</TABLE>
*Designates a trustee who is an interested person of the trust within the
meaning of the 1940 Act.
COMPENSATION OF TRUSTEES AND OFFICERS
For the fiscal year ended December 31, 1999, the fees and expenses of
disinterested trustees, as a group, were $73,000. Those trustees and officers of
the Trust who are affiliated with the Subadviser or the Adviser are not
separately compensated for their services as trustees or officers of the Trust.
The Trust currently pays each of its disinterested trustees a fee of $5,000 per
year, plus $1,500 per meeting attended ($500 per phone meeting) and reimburses
their expenses for attendance at meetings, all of which is prorated on the basis
of the assets of each Fund. In addition, each such trustee receives a fee of
$1,000 per year from each Fund. Trustees may be removed from office at any
meeting of shareholders by a vote of two-thirds of the outstanding shares of the
Trust. Except as set forth above, the trustees shall continue to hold office and
may appoint their successors.
For the Trust's last fiscal year, the Trustees received the following
compensation:
<TABLE>
<CAPTION>
PENSION OR TOTAL COMPENSATION
AGGREGATE RETIREMENT BENEFITS ESTIMATED FROM THE TRUST AND
COMPENSATION ACCRUED AS PART ANNUAL BENEFITS FUND COMPLEX (2 FUNDS)
NAME FROM THE TRUST OF TRUST EXPENSES UPON RETIREMENT PAID TO TRUSTEES
---- -------------- ----------------- --------------- ----------------
<S> <C> <C> <C> <C>
James Balog $17,500 $22,500
Claire B. Benenson $18,500 None None $24,000
S. Leland Dill $18,500 for any for any $24,000
Philip R. McLoughlin $0 Trustee Trustee $0
Donald B. Romans $18,500 $24,000
</TABLE>
*"Interested Person" as defined under the Investment Company Act.
29
<PAGE>
At November 24, 2000, except for Dr. Martin E. Zweig, the Trustees and
officers as a group owned less than 1% of any class of any fund of the Trust.
PRINCIPAL SHAREHOLDERS
The following table sets forth information as of November 27, 2000 with
respect to each person who beneficially owns 5% or more of any class of the
Fund's equity securities.
<TABLE>
<CAPTION>
NAME OF SHAREHOLDER FUND AND CLASS PERCENT OF CLASS
------------------- -------------- ----------------
<S> <C> <C>
Dean Witter for the Benefit of Foreign Equity Fund Class A 10.25%
Hortense E. Martin
P.O. Box 250 Church Street Station
New York, NY 10008-0250
Dean Witter Foreign Equity Fund Class C 5.69%
FBO Helene Hahn
P.O. Box 250 Church Street Station
New York, NY 10008-0250
Donaldson Lufkin Jenrette Growth & Income Fund Class C 6.03%
Securities Corporation Inc.
P.O. Box 2052
Jersey City, NJ 07303-2052
Donaldson Lufkin Jenrette Foreign Equity Fund Class A 5.47%
Securities Corporation Inc.
P.O. Box 2052
Jersey City, NJ 07303-2052
Hare & Co. Government Cash Fund Class M 30.96%
Bank of New York
Attn. Stif/Master Note
1 Wall Street, Fl. 2
New York, NY 10005-2501
June L. Hurley & Joanne Hurley Foreign Equity Fund Class C 7.26%
Linda Hurley Buillings Co-Ttees
Frederick Roberts Hurley Life Ins.
1024 E. Desert Cove Avenue
Phoenix, AZ 85020-1150
Edward D. Jones and CO F/A/O Government Cash Fund Class C 5.19%
Detrek Engineering Inc.
Retirement Plan
P.O. Box 2500
Maryland Heights, MO 63043-8500
Daniel Matthew McGee Ttee Foreign Equity Fund Class C 6.69%
of the Ellis Trust Agreement
6311 Wilshire Boulevard
Los Angeles, CA 90048-5001
NFSC DEBO#A7T-142743 Government Cash Fund Class B 5.37%
NFSC/FMTC IRA
FBO Donald H. Lutz
153 Tobie Avenue
Pawtucket, RI 02861-3215
NFSC FEBO Government Cash Fund Class C 5.49%
Laborer's Intl of NA Local 860
4220 Prospect Avenue
Cleveland, OH 44103-4367
</TABLE>
30
<PAGE>
<TABLE>
<CAPTION>
NAME OF SHAREHOLDER FUND AND CLASS PERCENT OF CLASS
------------------- -------------- ----------------
<S> <C> <C>
Prudential Securities Government Cash Fund Class A 5.65%
FBO Roger Markle IRA
1145 Dominguez, Ste. #J
Carson, CA 90746-3550
Salomon Smith Barney Inc. Government Cash Fund Class B 9.84%
333 West 34th Street - 3rd Fl. Government Fund Class B 5.65%
New York, NY 10001
Sand Dollar Limited Partnership Government Cash Fund Class A 5.52%
5 Puerto Royal
San Clemente, CA 92672-6048
Nicholas Schaus Government Cash Fund Class A 8.69%
Barbara D. Schaus JT TEN
137 Anchor Drive
Vero Beach, FL 32963-2941
Jack Schatz Government Cash Fund Class A 7.55%
Susan Schatz Ttees
Corporate Concepts Ltd., PSP
1104 Tower Drive
Edgewater, NJ 07020-2213
William J. Ragen, Ttee Government Cash Fund Class C 5.59%
WRL Inc. PSP Tr
111 W. Jackson Boulevard, Ste. 1144
Chicago, IL 60604-3502
MLPF&S Appreciation Fund Class B 8.13%
For the Sole Benefit of its Customers Appreciation Fund Class C 16.73%
Attn: Fund Administration Foreign Equity Fund Class B 20.62%
4800 Deer Lake Drive East, 3rd Fl. Government Fund Class B 41.92%
Jacksonville, FL 32246-6484 Government Fund Class C 28.68%
Growth & Income Fund Class B 19.48%
Growth & Income Fund Class C 7.92%
Managed Assets Class A 8.62%
Managed Assets Class B 23.75%
Managed Assets Class C 17.51%
Strategy Fund Class A 12.41%
Strategy Fund Class B 14.34%
Strategy Fund Class C 17.52%
PaineWebber for the Benefit of Growth & Income Fund Class A 5.59%
Anna May Carlson Ttee
The Elmer J. Carlson Trust
& Anna May Carlson Trust "B"
2551 Coronado Place
Vista, CA 92083-8715
Prudential Securities Inc. Growth & Income Fund Class C 7.03%
FBO Richard W. Dowis &
Colleen D. Dowis Ten Com
425 Columbine Street
Sterling, CO 80751-3947
Prudential Bank & Trust FBO Appreciation Fund Class I 7.78%
Its Defined Contribution
Plan Customers
30 Scranton Office Park
Scranton, PA 18507
</TABLE>
31
<PAGE>
<TABLE>
<CAPTION>
NAME OF SHAREHOLDER FUND AND CLASS PERCENT OF CLASS
------------------- -------------- ----------------
<S> <C> <C>
Prudential Securities Inc., Foreign Equity Fund Class A 6.77%
FBO Edwin L. Rule
Marguerite Rule Co-Ttees
The Rule Family Trust
Kensington, CA 94707
Prudential Securities FBO Government Cash Fund Class C 5.60%
Stanley E. Coleby
Sharon A. Coleby JTWROS
2432 Briar Creek Circle
Salt Lake City, UT 84117-4575
State Street Bank & Trust Co Growth & Income Fund Class A 10.49%
Cust for the Rollover IRA of
Mollie Friedman Zweig
625 Park Avenue Apt 8-9B
New York, NY 10021-6545
State Street Bank & Trust Co. Foreign Equity Fund Class A 6.71%
Cust for the Rollover IRA of
Michael G. Rains
1326 Canterbury Drive
Abilene, TX 79602-4207
State Street Bank & Trust Government Cash Fund Class C 7.99%
Cust for the IRA Rollover of Rana J. Khan
3722 Augusta Lane
Elkhart, IN 46517-3854
Martin E. Zweig & Jeffrey Perry Ttee Appreciation Fund Class I 92.21%
Zweig-DiMenna Associates, Inc. Government Fund Class I 24.38%
Retirement Trust MPP Growth & Income Fund Class I 99.98%
Attn. Michael Link Managed Assets Class I 98.44%
900 Third Avenue, Fl. 31 Strategy Fund Class I 99.98%
New York, NY 10022-4728
Martin Zweig Ttee Government Cash Fund Class I 93.27%
Marty & Barbara Zweig
Foundation Inc.
900 Third Avenue, Fl. 31
New York, NY 10022-4728
Martin Zweig Government Cash Fund Class M 6.61%
Tax Account
900 Third Avenue, Fl. 30
New York, NY 10022-4728
Martin E. Zweig Personal Government Cash Fund Class M 9.54%
C/O Zweig Companies Government Fund Class I 75.62%
900 Third Avenue, Fl. 30
New York, NY 10022-4728
</TABLE>
32
<PAGE>
ADDITIONAL INFORMATION
CAPITAL STOCK
The capitalization of the Trust consists solely of an unlimited number of
shares of beneficial interest. The Trust currently offers shares in different
Funds and different classes of those Funds. Holders of shares of a Fund have
equal rights with regard to voting, redemptions, dividends, distributions, and
liquidations with respect to that Fund. Shareholders of all Funds vote on the
election of Trustees. On matters affecting an individual Fund (such as approval
of an investment advisory agreement or a change in fundamental investment
policies) and on matters affecting an individual class (such as approval of
matters relating to a Plan of Distribution for a particular class of shares), a
separate vote of that Fund or Class is required. The Trust does not hold regular
meetings of shareholders. The Trustees will call a meeting when at least 10% of
the outstanding shares so request in writing. If the Trustees fail to call a
meeting after being so notified, the Shareholders may call the meeting. The
Trustees will assist the Shareholders by identifying other shareholders or
mailing communications, as required under Section 16(c) of the 1940 Act.
Shares are fully paid, nonassessable, redeemable and fully transferable when
they are issued. Shares do not have cumulative voting rights, preemptive rights
or subscription rights. The assets received by the Trust for the issue or sale
of shares of each Fund, and any class thereof and all income, earnings, profits
and proceeds thereof, are allocated to such Fund, and class, respectively,
subject only to the rights of creditors, and constitute the underlying assets of
such Fund or class. The underlying assets of each Fund are required to be
segregated on the books of account, and are to be charged with the expenses in
respect to such Fund and with a share of the general expenses of the Trust. Any
general expenses of the Trust not readily identifiable as belonging to a
particular Fund or class will be allocated by or under the direction of the
Trustees as they determine fair and equitable.
Unlike the stockholders of a corporation, there is a possibility that the
shareholders of a business trust such as the Trust may be personally liable for
debts or claims against the Trust. The Declaration of Trust provides that
shareholders shall not be subject to any personal liability for the acts or
obligations of the Trust and that every written agreement, undertaking or
obligation made or issued by the Trust shall contain a provision to that effect.
The Declaration of Trust provides for indemnification out of the Trust property
for all losses and expenses of any shareholder held personally liable for the
obligations of the Trust. Thus, the risk of a shareholder incurring financial
loss on account of shareholder liability, which is considered remote, is limited
to circumstances in which the Trust itself would be unable to meet its
obligations.
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP, 1177 Avenue of the Americas, New York, NY 10036,
serves as the independent accountants for the Trust. PricewaterhouseCoopers LLP
audits the Trust's annual financial statements and expresses an opinion thereon.
CUSTODIAN AND TRANSFER AGENT
The Bank of New York, One Wall Street, New York, NY 10286 serves as custodian
of the Trust's assets.
Phoenix Equity Planning Corporation ("PEPCO"), 56 Prospect Street, P.O. Box
150480, Hartford, CT 06115-0480, serves as Transfer Agent for the Fund. PEPCO
receives a fee equivalent to $13.50 for each shareholder account, plus
out-of-pocket expenses. The Transfer Agent is authorized to engage subagents to
perform certain shareholder servicing functions from time to time for which such
agents are paid a fee by the Transfer Agent. State Street Bank and Trust Company
serves as subtransfer agent pursuant to a Subtransfer Agency Agreement.
REPORT TO SHAREHOLDERS
The fiscal year of the Trust ends on December 31. The Trust will send
financial statements to its shareholders at least semiannually. An Annual Report
containing financial statements audited by the Trust's independent accountants
will be sent to shareholders each year, and is available without charge upon
request.
FINANCIAL STATEMENTS
The Financial Statements for the Fund's fiscal year ended December 31, 1999
and June 30, 2000, appearing in the Fund's 1999 Annual Report and June 30, 2000
Semiannual Report to Shareholders, are incorporated herein by reference.
33
<PAGE>
APPENDIX
CORPORATE BOND RATINGS
DESCRIPTION OF MOODY'S CORPORATE BOND RATINGS:
Aaa -- Bonds which are rated Aaa are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred to as
gilt-edge. Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues.
Aa -- Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally known as
high grade bonds. They are rated lower than the best bonds because margins of
protection may not be as large as in Aaa securities or fluctuation of protective
elements may be of greater amplitude or there may be other elements present
which make the long-term risks appear somewhat larger than in Aaa securities.
A -- Bonds which are rated A possess many favorable investment attributes and
are to be considered as upper medium grade obligations. Factors giving security
to principal and interest are considered adequate, but elements may be present
which suggest a susceptibility to impairment sometime in the future.
Baa -- Bonds which are rated Baa are considered as medium grade obligations,
i.e., they are neither highly protected nor poorly secured. Interest payments
and principal security appear adequate for the present, but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well.
Ba -- Bonds which are rated Ba are judged to have speculative elements; their
future cannot be considered as well-assured. Often the protection of interest
and principal payments may be very moderate, and thereby not well safeguarded
during both good and bad times over the future. Uncertainty of position
characterizes bonds in this class.
B -- Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small.
Caa -- Bonds which are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to principal or
interest.
DESCRIPTION OF S&P CORPORATE BOND RATINGS:
AAA -- Bonds rated AAA have the highest rating assigned by Standard & Poor's
to a debt obligation. Capacity to pay interest and repay principal is extremely
strong.
AA -- Bonds rated AA have a strong capacity to pay interest and repay
principal and differ from the highest rated issues only in small degrees.
A -- Bonds rated A have a strong capacity to pay interest and repay principal
although they are somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions than bonds in higher rated categories.
BBB -- Bonds rated BBB are regarded as having an adequate capacity to pay
interest and repay principal. Whereas they normally exhibit adequate protection
parameters, adverse economic conditions or changing circumstances are more
likely to lead to a weakened capacity to pay interest and repay principal for
bonds in this category than for bonds in higher rated categories.
BB, B, CCC -- Bonds rated BB, B or CCC are regarded, on balance, as
predominantly speculative with respect to capacity to pay interest and repay
principal in accordance with the terms of the obligation. BB indicates the
lowest degree of speculation and CCC a higher degree of speculation. While such
debt will likely have some quality and protective characteristics, these are
outweighed by large uncertainties or major risk exposures to adverse conditions.
Bonds rated BBB or lower by S&P and Bonds rated Baa or less by Moody's
(non-investment grade securities) are considered to be speculative in nature.
Non-investment grade securities will generally be less sensitive to interest
rate changes than investment grade securities (those rated A or higher by S&P
and BBB or higher by Moody's) but will be more sensitive to adverse economic
changes or specific corporate developments. The liquidity risk of non-investment
grade securities will be higher than investment grade securities and their value
will be more difficult to ascertain due to the lack of an established secondary
market. These securities may also be adversely affected by new laws or proposed
new laws on the high yield market (e.g., tax proposals).
COMMERCIAL PAPER RATINGS
DESCRIPTION OF MOODY'S COMMERCIAL PAPER RATINGS:
The rating Prime-1 is the highest commercial paper rating assigned by
Moody's. Among the factors considered by Moody's in assigning ratings are the
following: (1) evaluation of the management of the issuer; (2) economic
evaluation of the issuer's industry or industries and an appraisal of
speculative type risks which may be inherent in certain areas; (3) evaluation of
the issuer's
34
<PAGE>
products in relation to competition and customer acceptance; (4) liquidity; (5)
amount and quality of long-term debt; (6) trend of earnings over a period of ten
years; (7) financial strength of a parent company and the relationships which
exist with the issuer; and (8) recognition by the management of obligations
which may be present or may arise as a result of public interest questions and
preparations to meet obligations. Description of S&P's Commercial Paper Ratings:
Commercial paper rated A-1 by S&P has the following characteristics:
Liquidity ratios are adequate to meet cash requirements: long-term senior debt
is rated A or better, the issuer has access to at least two additional channels
of borrowing; and basic earnings and cash flow have an upward trend with
allowance made for unusual circumstances. Typically, the issuer's industry is
well established and the issuer has a strong position in the industry. The
reliability and quality of management are unquestioned. Relative strength or
weakness of the above factors determines whether the issuer's commercial paper
is rated A-1, A-2 or A-3.
35
<PAGE>
Phoenix Investment Partners
Prospectus
December 15, 2000
-------- Zweig
Phoenix-Zweig
Government Cash Fund
Class M Shares
Neither the Securities and Exchange
Commission nor any state securities
commission has approved or
disapproved of these securities or
determined if this prospectus is
truthful or complete. Any representation
to the contrary is a criminal offense.
This prospectus contains important
information that you should know
before investing in the Phoenix-Zweig
Government Cash Fund Class M Shares.
Please read it carefully and retain it
for future reference.
[logo] PHOENIX
INVESTMENT PARTNERS
<PAGE>
TABLE OF CONTENTS
--------------------------------------------------------------------------------
Investment Risk and Return Summary................................ 1
Fund Expenses..................................................... 4
Management of the Fund............................................ 5
Pricing of Fund Shares............................................ 6
How to Buy Shares................................................. 7
How to Sell Shares................................................ 9
Things You Should Know When Selling Shares........................ 9
Account Policies.................................................. 11
Investor Services................................................. 11
Distributions and Taxes........................................... 12
Financial Highlights.............................................. 13
Additional Information............................................ 16
[triangle] Phoenix-
Zweig
Government
Cash Fund
Class M
Shares
<PAGE>
PHOENIX-ZWEIG GOVERNMENT CASH FUND
THIS PROSPECTUS DESCRIBES CLASS M SHARES OF PHOENIX-ZWEIG GOVERNMENT CASH FUND.
Refer to the Phoenix-Zweig Trust Prospectus for information on Class A, Class B,
Class C or Class I Shares.
INVESTMENT RISK AND RETURN SUMMARY
--------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Phoenix-Zweig Government Cash Fund (the "fund"), one of seven different funds,
or series, of Phoenix-Zweig Trust (the "Trust"), has an investment objective of
seeking high current income consistent with maintaining liquidity and preserving
capital. There is no guarantee that the fund will achieve its objective.
PRINCIPAL INVESTMENT STRATEGIES
> The fund seeks to maintain a stable $1.00 per share price.
> The fund invests exclusively in the following instruments:
o short-term securities issued or guaranteed as to payment of
principal and interest by the U.S. Government, its agencies or
instrumentalities; and
o repurchase agreements collateralized by such securities.
U.S. Government securities are considered to be of the highest credit
quality, yet the primary consideration in choosing among these
securities is managing risk related to changes in interest rate levels.
> Money market instruments selected for investment have remaining
maturities of less than 397 days and have an average weighted portfolio
maturity of not greater than 90 days.
Phoenix-Zweig Government Cash Fund 1
<PAGE>
RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES
GENERAL
An investment in the fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the fund.
Neither the fund nor the adviser can assure you that a particular yield, return
or level of income will be achieved. Changing market conditions, the relatively
short maturities of fund investments and substantial redemptions may all
negatively affect the fund.
CREDIT RISK
Credit risk pertains to the issuer's ability to make scheduled interest or
principal payments. A security's short-term investment rating may decline,
increasing the chances that the issuer will be unable to make such payments when
due. This may reduce the fund's stream of income and decrease the fund's yield.
INTEREST RATE RISK
Interest rate trends can have an affect on the value of your shares. If interest
rates rise, the value of debt securities generally will fall.
REPURCHASE AGREEMENTS
The fund may invest in repurchase agreements with commercial banks, brokers and
dealers considered by the adviser to be creditworthy. Default of insolvency of
the other party presents risk to the fund.
U.S. GOVERNMENT SECURITIES
Obligations issued or guaranteed by the U.S. Government, its agencies,
authorities and instrumentalities only guarantee or insure principal and
interest will be timely paid to holders of the securities. The entities do not
guarantee that the value of fund shares will remain at $1.00 or that the fund
will realize a particular yield.
2 Phoenix-Zweig Government Cash Fund
<PAGE>
PERFORMANCE TABLES
The bar chart and table below provide some indication of the risks of investing
in the Phoenix-Zweig Government Cash Fund. The bar chart shows changes in the
fund's Class M Shares performance from year to year over a 10-year period.1 The
table shows the fund's average annual returns over the life of the fund. The
fund's past performance is not necessarily an indication of how the fund will
perform in the future.
[GRAPHIC OMITTED]
CALENDAR YEAR ANNUAL RETURN (%)
1990 7.5
1991 5.6
1992 3.4
1993 2.9
1994 3.7
1995 5.3
1996 5.1
1997 5.2
1998 5.2
1999 4.8
(1) During the 10-year period shown in the chart above, the highest return for a
quarter was 1.86% (quarter ending September 30, 1990) and the lowest return for
a quarter was 0.69% (quarter ending March 31, 1993). Year-to-date performance
(through September 30, 2000) was 4.34%.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
Average Annual Total Returns One Year Five Years Ten Years Life of the
(for the periods ending 12/31/99)(1) Fund(2)
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class M Shares(3) 4.77% 5.11% 4.86% --
------------------------------------------------------------------------------------------------------------------
Class A Shares 4.52% 4.86% -- 4.74%
------------------------------------------------------------------------------------------------------------------
Class B Shares -0.20% -- -- 3.36%
------------------------------------------------------------------------------------------------------------------
Class C Shares 4.52% 4.86% -- 4.74%
------------------------------------------------------------------------------------------------------------------
Class I Shares 4.83% -- -- 5.11%
------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The fund's average annual returns in the table above reflect a full
redemption in the fund's Class B and Class C Shares.
(2) Class A and Class C Shares since May 1, 1994, Class B Shares since April 8,
1996, and Class I Shares since November 1, 1996.
(3) Phoenix/Zweig Advisers LLC assumed responsibility for managing the fund on
September 1, 1989.
The fund's 7-day yield on December 31, 1999 was 5.29% for Class M Shares.
Phoenix-Zweig Government Cash Fund 3
<PAGE>
FUND EXPENSES
--------------------------------------------------------------------------------
This table illustrates all fees and expenses that you may pay if you buy and
hold shares of the fund.
<TABLE>
<CAPTION>
CLASS M CLASS A CLASS B CLASS C CLASS I
SHARES SHARES SHARES SHARES SHARES
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR
INVESTMENT)
Maximum Sales Charge (load) Imposed on Purchases
(as a percentage of offering price) None None None None None
Maximum Deferred Sales Charge (load) (as a None None 5%(b) 1.25%(c) None
percentage of the lesser of the value redeemed or
the amount invested)
Maximum Sales Charge (load) Imposed on Reinvested
Dividends None None None None None
Redemption Fee None None None None None
Exchange Fee None None None None None
---------------------------------------------------------------
CLASS M CLASS A CLASS B CLASS C CLASS I
SHARES SHARES SHARES SHARES SHARES
------ ------ ------ ------ ------
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE
DEDUCTED FROM FUND ASSETS)
Management Fees 0.50% 0.50% 0.50% 0.50% 0.50%
Distribution and Service (12b-1) Fees(d) 0.06% 0.30% 1.00% 0.30% None
Other Expenses 0.10% 0.29% 1.01% 0.55% 0.17%
----- ----- ----- ----- -----
TOTAL ANNUAL FUND OPERATING EXPENSES(a) 0.66% 1.09% 2.51% 1.35% 0.67%
===== ===== ===== ===== =====
</TABLE>
----------
(a) The adviser has agreed to reimburse through April 30, 2001 the Phoenix-Zweig
Government Cash Fund's expenses, excluding taxes, interest, brokerage
commissions, Rule 12b-1 fees and extraordinary expenses, to the extent that such
expenses exceed 0.35% for each class of shares. The Management Fees with
reimbursement were 0.25% for Class M Shares, and 0.00% for Class A, Class B,
Class C, and Class I Shares. Other Expenses with reimbursement were 0.10% for
Class M Shares and 0.35% for Class A, Class B, Class C, and Class I Shares. The
Total Annual Fund Operating Expenses after expense reimbursement were 0.41% for
Class M Shares, 0.65% for Class A and C Shares, 1.35% for Class B Shares, and
0.35% for Class I Shares.
(b) The maximum deferred sales charge is imposed on Class B Shares redeemed
during the first year; thereafter, it decreases 1% annually to 3% during the
third and fourth years and to 0% after the sixth year.
(c) The deferred sales charge is imposed on Class C Shares redeemed during the
first year only.
(d) Distribution and Service Fees represent an asset-based sales charge that,
for a long-term shareholder, may be higher than the maximum front-end sales
charge permitted by the National Association of Securities Dealers, Inc.
("NASD").
4 Phoenix-Zweig Government Cash Fund
<PAGE>
EXAMPLE
This example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and that the
fund's operating expenses remain the same. In the case of Class B Shares, it is
assumed that your shares are converted to Class A after seven years. Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
--------------------------------------------------------------------------------
CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
Class M $67 $211 $368 $822
--------------------------------------------------------------------------------
Class A $111 $347 $601 $1,329
--------------------------------------------------------------------------------
Class B $654 $1,082 $1,435 $2,329
--------------------------------------------------------------------------------
Class C $262 $428 $739 $1,624
--------------------------------------------------------------------------------
Class I $68 $214 $373 $835
--------------------------------------------------------------------------------
You would pay the following expenses if you did not redeem your shares:
--------------------------------------------------------------------------------
CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
Class B $254 $782 $1,335 $2,329
--------------------------------------------------------------------------------
Class C $137 $428 $739 $1,624
--------------------------------------------------------------------------------
Note: Your actual expenses may be lower than those shown in the tables above
since the expense levels used to calculate the figures shown do not include the
reimbursement of expenses over certain levels by the fund's investment adviser.
Refer to the section "Management of the Fund" for information about expense
reimbursement.
MANAGEMENT OF THE FUND
--------------------------------------------------------------------------------
THE ADVISERS
Phoenix/Zweig Advisers LLC ("Phoenix/Zweig") (formerly Zweig/Glaser Advisers
LLC) is the investment adviser for the fund and is located at 900 Third Avenue,
New York, NY 10022. As of December 31, 1999, Phoenix/Zweig was managing twelve
funds with net assets
Phoenix-Zweig Government Cash Fund 5
<PAGE>
of approximately $1.8 billion and acting as adviser to two closed-end funds with
more than $1.4 billion in assets. Phoenix/Zweig has been managing funds since
1986.
Phoenix/Zweig is a wholly-owned subsidiary of Phoenix Investment Partners, Ltd.
("PXP"), a Delaware corporation, located at 56 Prospect Street, Hartford, CT
06115. PXP is a publicly-traded independent registered investment advisory firm,
and has served investors for over 70 years. As of December 31, 1999, PXP had
over $64.6 billion in assets under management.
Subject to the direction of the Trust's Board of Trustees, Phoenix/Zweig is
responsible for managing the fund's investment program, selecting specific
securities for the fund, and maintaining the general operations of the fund.
Phoenix/Zweig manages the fund's assets to conform with the investment policies
as described in this prospectus.
The fund pays Phoenix/Zweig a monthly investment management fee that is accrued
daily against the value of the fund's net assets at the annual rate of 0.50%.
Zweig Consulting LLC ("Zweig Consulting"), a New York limited liability company,
acts as the investment subadviser for all the funds of the Phoenix-Zweig Trust
and is located at 900 Third Avenue, New York, NY 10022. Dr. Martin E. Zweig
serves as President of Zweig Consulting and as President of the fund.
Phoenix/Zweig pays Zweig Consulting a subadvisory fee of approximately
$2,500,000 per annum allocated monthly for acting as subadviser to all of the
funds of the Phoenix-Zweig Trust and the Phoenix-Euclid Funds.
During the fund's last fiscal year, the fund paid total management fees of
$827,398.
The adviser has voluntarily agreed to assume operating expenses of the
Government Cash Fund (excluding interest, taxes, brokerage commissions, 12b-1
fees, and extraordinary expenses) until April 30, 2001 to the extent that such
expenses exceed 0.35% of the average annual net assets of that fund.
PORTFOLIO MANAGEMENT
Beth Abraham has served as portfolio manager for the fund and as an Assistant
Vice President of the Trust since 1995. Ms. Abraham's experience includes
consulting to the mutual fund industry and acting as a Senior Compliance
Examiner in the New York Regional Office of the Securities and Exchange
Commission.
PRICING OF FUND SHARES
--------------------------------------------------------------------------------
HOW IS THE SHARE PRICE DETERMINED?
The fund attempts to maintain a stable share price of $1.00. In determining the
fund's net asset value, the fund utilizes the amortized cost method of valuing
its investments whereby
6 Phoenix-Zweig Government Cash Fund
<PAGE>
investments are valued initially at cost and thereafter assume a constant
amortization to maturity of any discount or premium. In general, the net asset
value is calculated by:
o adding the values of all investments and other assets of the fund,
o subtracting liabilities, and
o dividing the result by the total number of outstanding shares of the
fund.
Liabilities: Class specific expenses, distribution fees, service fees and other
liabilities that are deducted from the assets of each class. Expenses and
liabilities that are not class specific (such as management fees) are allocated
to each class in proportion to each class' net assets, except where an
alternative allocation can be more fairly made.
Net Asset Value: The liability allocated to a class plus any other expenses are
deducted from the proportionate interest of such class in the assets of the
fund. The resulting amount for each class is then divided by the number of
shares outstanding of that class to produce each class' net asset value per
share.
The net asset value per share of each class of the fund is determined as of
2:00 PM eastern time on each day the NYSE is open for trading.
AT WHAT PRICE ARE SHARES PURCHASED?
All investments received by the fund's authorized agents prior to 2:00 PM
eastern time will be executed based on the net asset value as of 2:00 PM eastern
time. Those received after 2:00 PM eastern time, will be executed based on the
net asset value as of 2:00 PM eastern time on the next business day.
HOW TO BUY SHARES
--------------------------------------------------------------------------------
The fund presently offers five classes of shares. Each class of shares has
different sales and distribution charges (see "Fund Expenses" previously in this
prospectus). The fund has adopted distribution and service plans allowed under
Rule 12b-1 of the Investment Company Act of 1940 that authorize the fund to pay
distribution and service fees for the sale of its shares and for services
provided to shareholders. Because distribution and service fees are paid out of
the fund's assets on an ongoing basis, over time these fees will increase the
cost of your investment and may cost you more than paying other types of sales
charges.
THIS PROSPECTUS DESCRIBES ONLY CLASS M SHARES OF PHOENIX-ZWEIG GOVERNMENT CASH
FUND. Other classes of shares are described in a separate prospectus.
Class M Shares of the fund are sold at net asset value without a sales charge.
Phoenix-Zweig Government Cash Fund 7
<PAGE>
Minimum INITIAL investments:
o $10,000.
o $1,000 for service organizations whose clients have made aggregate
minimum purchases of $1,000,000.
Minimum ADDITIONAL investments:
o There is no minimum for additional investments.
The Fund reserves the right to refuse a purchase order for any reason.
Purchase orders received by the transfer agent by 2:00 PM eastern time become
effective and earn dividends that day, provided that payment is received in
Federal funds by 4:00 PM eastern time. Purchase orders received by the transfer
agent after 2:00 PM eastern time will begin to accrue dividends on the next
business day.
THESE MINIMUMS DO NOT APPLY TO CLASS A, CLASS B, CLASS C, OR CLASS I SHARES.
<TABLE>
<CAPTION>
<S> <C>
----------------------------------- ----------------------------------------------------------------------------
TO OPEN AN ACCOUNT
(CLASS M SHARES ONLY)
----------------------------------- ----------------------------------------------------------------------------
Through a financial advisor Contact your advisor. Some advisors may charge a fee and may set different
minimum investments or limitations on buying shares.
----------------------------------- ----------------------------------------------------------------------------
Through Sweep Programs Customers of participating securities dealers and banks through which
purchases and sales are made with the dealers and banks as agents. Call us
at (800) 243-1574.
----------------------------------- ----------------------------------------------------------------------------
Through the mail Complete a New Account Application and send it with a check payable to the
fund. Mail them to: State Street Bank, ATTN: Phoenix-Zweig Government Cash
Fund, P.O. Box 8301, Boston, MA 02266-8301.
----------------------------------- ----------------------------------------------------------------------------
Through express delivery Complete a New Account Application and send it with a check payable to the
fund. Send them to: Boston Financial Data Services, Attn: Phoenix-Zweig
Government Cash Fund, 66 Brooks Drive, Braintree, MA 02184.
----------------------------------- ----------------------------------------------------------------------------
By Federal Funds wire Call us at (800) 243-1574.
----------------------------------- ----------------------------------------------------------------------------
By Investo-Matic Complete the appropriate section on the application and send it with your
initial investment payable to the fund. Mail them to: State Street Bank,
ATTN: Phoenix-Zweig Government Cash Fund, P.O. Box 8301, Boston, MA
02266-8301.
----------------------------------- ----------------------------------------------------------------------------
</TABLE>
8 Phoenix-Zweig Government Cash Fund
<PAGE>
HOW TO SELL SHARES
----------------------------------- --------------------------------------------
You have the right to have the fund buy back shares at the net asset value next
determined after receipt of a redemption order by the fund's Transfer Agent or
an authorized agent. Subject to certain restrictions, shares may be redeemed by
telephone or in writing. In addition, shares may be sold through securities
dealers, brokers or agents who may charge customary commissions or fees for
their services. The fund does not charge any redemption fees on Class M Shares.
Payment for shares redeemed is made within seven days; however, redemption
proceeds will not be disbursed until each check used for purchases of shares has
been cleared for payment by your bank, which may take up to 15 days after
receipt of the check.
<TABLE>
<CAPTION>
----------------------------------- --------------------------------------------
TO SELL SHARES
(CLASS M SHARES ONLY)
----------------------------------- --------------------------------------------
<S> <C>
Through a financial advisor Contact your advisor. Some advisors may
charge a fee and may set different minimums
on redemptions of accounts.
----------------------------------- --------------------------------------------
Through Sweep Programs Call us at (800) 243-1574.
----------------------------------- --------------------------------------------
Through the mail Send a letter of instruction, with
signature guarantees, and any share
certificates (if you hold certificate
shares) to: State Street Bank, ATTN:
Phoenix-Zweig Government Cash Fund, P.O.
Box 8301, Boston, MA 02266-8301. Be sure to
include the registered owner's name, fund
and account number, and number of shares or
dollar value you wish to sell.
----------------------------------- --------------------------------------------
Through express delivery Send a letter of
instruction and any share certificates (if
you hold certificate shares) to: Boston
Financial Data Services, Attn:
Phoenix-Zweig Government Cash Fund, 66
Brooks Drive, Braintree, MA 02184. Be sure
to include the registered owner's name,
fund and account number, and number of
shares or dollar value you wish to sell.
----------------------------------- --------------------------------------------
By check Call us at (800) 243-1574.
----------------------------------- --------------------------------------------
By telephone For sales up to $50,000, requests can be
made by calling (800) 243-1574.
----------------------------------- --------------------------------------------
</TABLE>
THINGS YOU SHOULD KNOW WHEN SELLING SHARES
--------------------------------------------------------------------------------
You may realize a taxable gain or loss (for federal income tax purposes) if you
redeem shares of the fund. The fund reserves the right to pay large redemptions
"in-kind" (in securities owned by the fund rather than in cash). Large
redemptions are those over $250,000 or 1% of the fund's net assets. Additional
documentation will be required for redemptions by organizations, fiduciaries, or
retirement plans, or if redemption is requested by anyone but the shareholder(s)
of record. Transfers between broker-dealer "street" accounts are governed by the
accepting broker-dealer. Questions regarding this type of transfer should be
directed to your financial
Phoenix-Zweig Government Cash Fund 9
<PAGE>
advisor. Redemption requests will not be honored until all required documents in
proper form have been received. To avoid delay in redemption or transfer,
shareholders having questions about specific requirements should contact the
fund's Transfer Agent at (800) 243-1574.
REDEMPTIONS BY MAIL
Send a clear letter of instructions with a signature guarantee and any
applicable certificates.
If you are selling shares held in a corporate or fiduciary account, please
contact the fund's Transfer Agent at (800) 243-1574.
The signature on your request must be guaranteed by an eligible guarantor
institution as defined by the fund's Transfer Agent in accordance with its
signature guarantee procedures. Currently, such procedures generally permit
guarantees by banks, broker-dealers, credit unions, national securities
exchanges, registered securities associations, clearing agencies and savings
associations.
REDEMPTIONS BY CHECK
You may establish a Check Service with State Street Bank and Trust Company.
Checks must be in amounts of $500 or more. To obtain redemption checks, complete
an application form which can be obtained by calling us at (800) 243-1574. When
a check is presented for payment, State Street will redeem full and fractional
shares in your account to cover the amount of the check. State Street will not
honor a check for less than $500 or for an amount exceeding the value of your
account at the time the check is presented. We reserve the right to impose a
service charge for check redemptions, stop payment orders and returned checks.
SELLING SHARES BY TELEPHONE
The Transfer Agent will use reasonable procedures to confirm that telephone
instructions are genuine. Address and bank account information are verified,
redemption instructions are taped, and all redemptions are confirmed in writing.
The maximum amount that may be redeemed by telephone is $50,000. The Transfer
Agent will redeem shares and mail proceeds to shareholders on the same day for
telephone redemptions received prior to 2:00 PM eastern time. Those received
after 2:00 PM eastern time will be processed the next business day.
The individual investor bears the risk from instructions given by an
unauthorized third-party that the Transfer Agent reasonably believed to be
genuine.
The Transfer Agent may modify or terminate the telephone redemption privilege at
any time with 60 days notice to shareholders.
During times of drastic economic or market changes, telephone redemptions may be
difficult to make or temporarily suspended.
10 Phoenix-Zweig Government Cash Fund
<PAGE>
AUTOMATICALLY THROUGH SWEEP PROGRAMS
Customers of participating securities dealers and banks may participate in sweep
programs by which an account with the dealer or bank is coordinated with an
account in the fund. Purchases and sales are made by the participating
securities dealer or bank as agent of their customer. For further information
about the sweep program, see the Statement of Additional Information or call us
at (800) 243-1574.
ACCOUNT POLICIES
--------------------------------------------------------------------------------
REDEMPTION OF SMALL ACCOUNTS
Due to the high cost of maintaining small accounts, if your account balance is
less than $10,000, you may receive a notice requesting you to bring the balance
up to $10,000 within 60 days. If you do not, the shares in the account will be
sold at net asset value, and a check will be mailed to the address of record.
INVESTOR SERVICES
--------------------------------------------------------------------------------
INVESTO-MATIC is a systematic investment plan that allows you to have a
specified amount automatically deducted from your checking or savings account
and then deposited into your mutual fund account. Just complete the
Investo-Matic Section on the application and include a voided check.
SYSTEMATIC WITHDRAWAL PROGRAM allows you to periodically redeem a portion of
your account on a predetermined monthly, quarterly, semiannual, or annual basis.
Sufficient shares will be redeemed on the 15th of the month at the closing net
asset value so that the payment is made about the 20th of the month. The program
also provides for redemptions on or about the 10th, 15th, or 25th with proceeds
directed through Automated Clearing House (ACH) to your bank. The minimum
withdrawal is $25, and minimum account balance requirements continue.
Shareholders in the program must own fund shares worth at least $10,000.
Phoenix-Zweig Government Cash Fund 11
<PAGE>
DISTRIBUTIONS AND TAXES
--------------------------------------------------------------------------------
The fund declares dividends of all its net investment income and short-term
capital gains and losses at 2:00 PM eastern time on each day the NYSE is open
for trading. Distributions are reinvested at net asset value on the last
business day of each month unless a shareholder elects to receive them in cash.
Distributions of income and short-term capital gains are taxable to shareholders
as ordinary income, whether taken in cash or reinvested. (The fund does not
expect to realize any long-term capital gains.) All distributions, cash or
additional shares, are subject to federal income tax and may be subject to
state, local and other taxes.
12 Phoenix-Zweig Government Cash Fund
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
These tables are intended to help you understand the fund's financial
performance over a five-year period. Certain information reflects financial
results for a single fund share. The total returns in the table represent the
rate that an investor would have earned or lost on an investment in the fund
(assuming reinvestment of all dividends and distributions). This information has
been audited by PricewaterhouseCoopers LLP, independent accountants. Their
report, together with the fund's financial statements, are included in the
fund's most recent Annual Report, which is available upon request.
<TABLE>
<CAPTION>
CLASS M
--------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
8/30/00 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1999 1998 1997 1996 1995
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.03 0.05 0.05 0.05 0.05 0.05
----- ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT OPERATIONS 0.03 0.05 0.05 0.05 0.05 0.05
----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment income (0.03) (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 $1.00
===== ===== ===== ===== ===== =====
Total return (1) 2.77%(3) 4.77% 5.16% 5.22% 5.09% 5.32%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $182,525 $146,314 $75,264 $56,599 $45,271 $48,515
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(2) 0.41%(4) 0.41% 0.41% 0.41% 0.40% 0.64%
Net investment income 5.63%(4) 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.
(3) Not annualized.
(4) Annualized.
Phoenix-Zweig Government Cash Fund 13
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
8/30/00 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1999 1998 1997 1996 1995
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.03 0.04 0.05 0.05 0.05 0.05
----- ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT OPERATIONS 0.03 0.04 0.05 0.05 0.05 0.05
----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment income (0.03) (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 $1.00
===== ===== ===== ===== ===== =====
Total return(1) 2.65%(3) 4.52% 4.91% 4.97% 4.83% 5.08%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $3,705 $6,110 $8,290 $2,472 $3,360 $3,661
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 0.65%(2) 0.65% 0.65% 0.65% 0.65% 0.87%
Net investment income 5.46%(2) 4.41% 4.75% 4.85% 4.73% 4.97%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------------------------------------------------------------
SIX MONTHS From
ENDED Inception
8/30/00 YEAR ENDED DECEMBER 31 4/8/96 to
(UNAUDITED) 1999 1998 1997 12/31/96
----------- ---- ---- ---- ---------
<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 0.02 0.04 0.04 0.04 0.03
----- ----- ----- ----- -----
TOTAL FROM INVESTMENT OPERATIONS 0.02 0.04 0.04 0.04 0.03
----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment income (0.02) (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 $1.00
===== ===== ===== ===== =====
Total return(1) 2.30%(3) 3.80% 4.18% 4.24% 3.03%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $4,248 $4,650 $1,738 $336 $33
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 1.35%(2) 1.35% 1.35% 1.35% 1.35%(2)
Net investment income 4.69%(2) 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.
14 Phoenix-Zweig Government Cash Fund
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS C
--------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
8/30/00 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1999 1998 1997 1996 1995
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.03 0.04 0.05 0.05 0.05 0.05
----- ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT OPERATIONS 0.03 0.04 0.05 0.05 0.05 0.05
----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment income (0.03) (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 $1.00
===== ===== ===== ===== ===== =====
Total return(1) 2.65%(3) 4.52% 4.91% 4.97% 4.83% 5.08%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $3,562 $5,982 $6,624 $2,661 $4,535 $4,458
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 0.65%(2) 0.65% 0.65% 0.65% 0.65% 0.87%
Net investment income 5.37%(2) 4.43% 4.73% 4.85% 4.73% 4.97%
</TABLE>
<TABLE>
<CAPTION>
CLASS I
--------------------------------------------------------------------------------------------------------------------
SIX MONTHS From
ENDED Inception
8/30/00 YEAR ENDED DECEMBER 31 11/1/96
(UNAUDITED) 1999 1998 1997 12/31/96
----------- ---- ---- ---- ---------
<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 0.03 0.05 0.05 0.05 0.01
----- ----- ----- ----- -----
TOTAL FROM INVESTMENT OPERATIONS 0.03 0.05 0.05 0.05 0.01
----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment income (0.03) (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 $1.00
===== ===== ===== ===== =====
Total return(1) 2.80%(3) 4.83% 5.23% 5.28% 0.80%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $4,415 $2,146 $2,884 $100 $1,401
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 0.35%(2) 0.35% 0.35% 0.35% 0.35%(2)
Net investment income 5.74%(2) 4.73% 5.15% 5.15% 5.03%(2)
</TABLE>
----------
(1) Maximum sales charge is not reflected in the 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.
Phoenix-Zweig Government Cash Fund 15
<PAGE>
ADDITIONAL INFORMATION
--------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
The fund has filed a Statement of Additional Information, dated December 15,
2000 with the Securities and Exchange Commission. The Statement contains more
detailed information about the fund. It is incorporated into this prospectus by
reference and is legally part of the prospectus. You may obtain a free copy of
the Statement:
o by writing to Phoenix Equity Planning Corporation, 56 Prospect
Street, P.O. Box 150480, Hartford, Connecticut 06115-0480, or
o by calling (800) 243-4361.
You may also obtain information about the fund from the Securities and Exchange
Commission:
o through its internet site (http://www.sec.gov),
o by visiting its Public Reference Room in Washington, DC,
o by writing to its Public Reference Section, Washington, DC
20549-0102 (a fee may be charged), or
o by electronic request at [email protected] (a fee may be charged).
Information about the operation of the Public Reference Room may be obtained by
calling 1-202-942-8090.
SHAREHOLDER REPORTS
The Trust semiannually mails to its shareholders detailed reports containing
information about the fund's investments. The Trust's Annual Report contains a
detailed discussion of the market conditions and investment strategies that
significantly affected the Trust's performance from January 1 through December
31. You may request a free copy of the Trust's Annual and Semiannual Reports:
o by writing to Phoenix Equity Planning Corporation,
56 Prospect Street, P.O. Box 150480, Hartford, Connecticut
06115-0480, or
o by calling (800) 243-4361.
CUSTOMER SERVICE: (800) 243-1574
MARKETING: (800) 243-4361
TELEPHONE ORDERS: (800) 367-5877
TELECOMMUNICATION DEVICE (TTY): (800) 243-1926
[Recycle Logo] Printed on recycled paper using soybean ink
SEC File Nos. 2-93538 and 811-04116
16 Phoenix-Zweig Government Cash Fund
<PAGE>
PHOENIX EQUITY PLANNING CORPORATION
PO Box 150480
Hartford, CT 06115-0480
[LOGO] PHOENIX
INVESTMENT PARTNERS
For more information about
Phoenix mutual funds, please call
your financial representative or
contact us at 1-800-243-4361 or
www.phoenixinvestments.com
PXP 1197 (12/00)
<PAGE>
[Version B]
PHOENIX-ZWEIG TRUST
PHOENIX-ZWEIG GOVERNMENT CASH FUND
CLASS M SHARES
900 Third Avenue, 31st Floor
New York, New York 10022
STATEMENT OF ADDITIONAL INFORMATION
December 15, 2000
This Statement of Additional Information is not a prospectus, but expands
upon and supplements the information contained in the current Prospectus of
Phoenix-Zweig Government Cash Fund (the "Fund"), dated December 15, 2000, which
describes the Class M Shares of the Fund, and should be read in conjunction with
it. This Statement of Additional Information describes the Class M Shares of the
Fund only. Class M Shares currently have no exchange feature, and may not be
exchanged for Class A, Class B, Class C or Class I Shares of the Fund, or shares
of any other fund of the Phoenix-Zweig Trust (the "Trust") or any other
Affiliated Phoenix Fund. The Fund's Prospectus may be obtained by calling
Phoenix Equity Planning Corporation ("Equity Planning") at (800) 243-1574 or by
writing to Equity Planning at 56 Prospect Street, P.O. Box 150480, Hartford, CT
06115-0480.
TABLE OF CONTENTS
PAGE
The Trust ............................................................. 1
Investment Restrictions ............................................... 1
Investment Techniques and Risks ....................................... 2
Performance Information................................................ 2
Performance Comparisons ............................................... 3
Services of the Advisers .............................................. 3
Determination of Net Asset Value ...................................... 4
How to Buy and Sell Shares ............................................ 5
Tax Sheltered Retirement Plans ........................................ 6
The Distributor and Distributions Plans................................ 6
Management of the Trust ............................................... 8
Additional Information ................................................ 12
Customer Service: (800) 243-1574
Marketing: (800) 243-4361
Telephone Orders: (800) 367-1926
Telecommunications (TTY): (800) 243-1926
PXP1203 (12/00)
<PAGE>
THE TRUST
The Trust is an open-end management investment company which was organized in
1984 as a Massachusetts business trust, then reorganized as a Delaware business
trust in 1996.
The Fund's Prospectus describes the investment objectives of the
Phoenix-Zweig Government Cash Fund (the "Fund"), and summarizes the investment
policies and investment techniques the Fund will employ in seeking to achieve
its investment objective. The Funds' investment objectives are fundamental
policies of the Funds and may not be changed without the vote of a majority of
the outstanding voting securities of the Funds. The following discussion
supplements the description of the Fund's investment policies and investment
techniques in the Prospectus.
INVESTMENT RESTRICTIONS
The following investment restrictions have been adopted by the Trust with
respect to the Fund. Except as otherwise stated, these investment restrictions
are "fundamental" policies. A "fundamental" policy is defined in the 1940 Act to
mean that the restriction cannot be changed without the vote of a "majority of
the outstanding voting securities" of the Fund. A majority of the outstanding
voting securities is defined in the 1940 Act as the lesser of (a) 67% or more of
the voting securities present at a meeting if the holders of more than 50% of
the outstanding voting securities are present or represented by proxy, or (b)
more than 50% of the outstanding voting securities. However, these policies may
be modified by the Trustees, in their discretion, without shareholder approval,
to the extent necessary to facilitate the implementation of a master-feeder
structure for any or all of the Funds (i.e., a structure under which a
particular Fund acts as a feeder and invests all of its assets in a single
pooled master fund with substantially the same investment objectives and
policies).
The Fund may not:
(1) With respect to 75% of its total assets, purchase securities of an
issuer (other than the U.S. Government, its agencies, instrumentalities or
authorities or repurchase agreements collateralized by U.S. Government
securities and other investment companies), if: (a) such purchase would, at the
time, cause more than 5% of the Fund's total assets taken at market value to be
invested in the securities of such issuer; or (b) such purchase would, at the
time, result in more than 10% of the outstanding voting securities of such
issuer being held by the Fund.
(2) Purchase securities if, after giving effect to the purchase, more than
25% of its total assets would be invested in the securities of one or more
issuers conducting their principal business activities in the same industry
(excluding the U.S. Government, its agencies or instrumentalities), except that
the Government Cash Fund may invest more than 25% of its assets in instruments
issued by domestic banks.
(3) Borrow money, except (i) in amounts not to exceed one third of the
value of the Fund's total assets (including the amount borrowed) from banks, and
(ii) up to an additional 5% of its total assets from banks or other lenders for
temporary purposes. For purposes of this restriction, (a) investment techniques
such as margin purchases, short sales, forward commitments, and roll
transactions, (b) investments in instruments such as futures contracts, swaps,
and options and (c) short-term credits extended in connection with trade
clearance and settlement, shall not constitute borrowing.
(4) Issue "senior securities" in contravention of the 1940 Act. Activities
permitted by a SEC exemptive orders or staff interpretations shall not be deemed
to be prohibited by this restriction.
(5) Underwrite the securities issued by other persons, except to the extent
that, in connection with the disposition of portfolio securities, the Fund may
be deemed to be an underwriter under applicable law.
(6) Purchase or sell real estate, except that the Fund may (i) acquire or
lease office space for its own use, (ii) invest in securities of issuers that
invest in real estate or interests therein, (iii) invest in mortgage-related
securities and other securities that are secured by real estate or interests
therein, (iv) hold and sell real estate acquired by the Fund as a result of the
ownership of securities.
(7) Purchase or sell commodities or commodity contracts, except the Fund
may purchase and sell derivatives (including, but not limited to, options,
futures contracts and options on futures contracts) whose value is tied to the
value of a financial index or a financial instrument or other asset (including,
but not limited to, securities indexes, interest rates, securities, currencies
and physical commodities).
(8) Make loans, except that the Fund may (i) lend portfolio securities,
(ii) enter into repurchase agreements, (iii) purchase all or a portion of an
issue of debt securities, bank loan participation interests, bank certificates
of deposit, bankers' acceptances, debentures or other securities, whether or not
the purchase is made upon the original issuance of the securities and (iv)
participate in an interfund lending program with other registered investment
companies.
If any percentage restriction described above for the Fund is adhered to at
the time of investment, a subsequent increase or decrease in the percentage
resulting from a change in the value of the Fund's assets will not constitute a
violation of the restriction.
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INVESTMENT TECHNIQUES AND RISKS
The Fund may utilize the following practices or techniques in pursuing its
investment objectives.
REPURCHASE AGREEMENTS
Repurchase agreements involve purchases of securities by the Fund. In such a
transaction, at the time the Fund purchases the security, it simultaneously
agrees to resell and redeliver the security to the seller who also
simultaneously agrees to buy back the security at a fixed price and time. This
assumes a predetermined yield for the Fund during its holding period, since the
resale price is always greater than the purchase price and reflects an
agreed-upon market rate. Such transactions afford an opportunity for the Fund to
invest temporarily available cash. Repurchase agreements may be considered loans
to the seller collateralized by the underlying securities. The risk to the Fund
is limited to the ability of the seller to pay the agreed-upon sum on the
repurchase date; in the event of default, the repurchase agreement provides that
the Fund is entitled to sell the underlying collateral. If the value of the
collateral declines after the agreement is entered into, however, and if the
seller defaults under a repurchase agreement when the value of the underlying
collateral is less than the repurchase price, the Fund could incur a loss of
both principal and interest. The Adviser monitors the value of the collateral at
the time the transaction is entered into and at all times subsequent during the
term of the repurchase agreement in an effort to determine that the value of the
collateral always equals or exceeds the agreed-upon repurchase price to be paid
to the Fund. If the seller were to be subject to a federal bankruptcy
proceeding, the ability of the Fund to liquidate the collateral could be delayed
or impaired because of certain provisions of the bankruptcy laws. The Fund
intends to invest more than 20% of its assets in repurchase agreements only with
respect to obligations of the U.S. Government, its agencies or instrumentalities
and only with member banks of the Federal Reserve System or primary dealers in
U.S. Government securities. The Fund's repurchase agreements must be fully
backed by collateral (U.S. Government securities) that is marked to market, or
priced, each day.
U.S. TREASURY ISSUES
The Fund may invest in U.S. Treasury issues, such as bills, certificates of
indebtedness, notes and bonds, and issues of U.S. Government agencies and
instrumentalities which are established under the authority of an act of
Congress, such as the Bank for Cooperatives, Export-Import Bank of the U.S.,
Farmers Home Administration, Federal Financing Bank, Federal Home Loan Banks,
Federal Home Loan Mortgage Corp., Federal Housing Administration, Federal
Intermediate Credit Banks, Federal Land Banks, Federal National Mortgage
Association, Government National Mortgage Association (GNMA), Resolution Funding
Corp., Student Loan Marketing Association, Tennessee Valley Authority and the
U.S. Postal Service. Some of these securities, such as Federal Housing
Administration debenture obligations, are supported by the full faith and credit
of the U.S. Treasury; others, such as obligations of Federal Home Loan Banks,
are supported by the right of the issuer to borrow from the U.S. Treasury;
others, such as those of the Federal National Mortgage Association, are
supported by the discretionary authority of the U.S. Government to purchase the
agency's obligations; and still others, such as those of the Student Loan
Marketing Association, are supported only by the credit of the instrumentality.
The Fund will not invest in obligations of the International Bank for
Reconstruction and Development (the World Bank), the Asian Development Bank, or
the Inter-American Development Bank, or in FHA or VA pooled mortgages.
PERFORMANCE INFORMATION
From time to time, the Trust determines a current yield and effective yield
for each class of shares of the Fund. For a further discussion of how the Trust
calculates yield, see "Pricing of Fund Shares" in the Prospectus.
The effective yield is an annualized yield based on a compounding of the
unannualized base period return. The effective yield will be slightly higher
than the yield or seven-day current yield because of the compounding effect of
the assumed reinvestment.
These yields are each computed in accordance with a standard method
prescribed by the rules of the Commission, by first determining the net change
in account value for a hypothetical account having a share balance of one share
at the beginning of a seven-day period (the "beginning account value"). The net
change in account value equals the value of additional shares purchased with
dividends from the original share and dividends declared on both the original
share and any such additional shares. The unannualized base period return equals
the net change in account value divided by the beginning account value. Realized
gains or losses or changes in unrealized appreciation or depreciation are not
taken into account in determining the net change in account value.
The yields are then calculated as follows:
Net Change in Account Value 365
Current Yield = --------------------------- X ---
Beginning Account Value 7
365
Effective Yield = [(1 + Base Period Return) ---]-1
7
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For the seven days ended December 31, 1999, the Fund's current and effective
(compounded) yields were 5.29% and 5.40%, respectively, for Class M Shares;
5.06% and 5.16%, respectively, for Class A Shares; 4.36% and 4.44%,
respectively, for Class B Shares; 5.06% and 5.16%, respectively, for Class C
Shares; and 5.36% and 5.48%, respectively, for Class I Shares.
Yield is a function of portfolio quality and composition, portfolio maturity
and operating expenses. Yields fluctuate and do not necessarily indicate future
results. While yield information may be useful in reviewing the performance of
the Fund, it may not provide a basis for comparison with bank deposits, other
fixed rate investments or other investment companies that may use a different
method of calculating yield.
The investment results of the Class M, Class A, Class B, Class C and Class I
Shares of the Fund will tend to fluctuate over time, so that historical yields,
current distributions and total returns should not be considered representations
of what an investment may earn in any future period. Actual dividends will tend
to reflect changes in market yields, and will also depend upon the level of a
Class or the Fund's expenses, realized or unrealized investment gains and
losses, and the results of the Fund's investment policies. Thus, at any point in
time, investment yields, current distributions or total returns may be either
higher or lower than past results, and there is no assurance that any historical
performance record will continue.
PERFORMANCE COMPARISONS
The Trust, a Fund or Class of a Fund may, from time to time, include in
advertisements containing total return the ranking of those performance figures
relative to such figures for groups of mutual funds having similar investment
objectives as categorized by ranking services such as Lipper Analytical
Services, Inc., CDA Investment Technologies, Inc., Weisenberger Financial
Services, Inc., and rating services such as Morningstar, Inc. Additionally, the
Trust or a Fund may compare its performance results to other investment or
savings vehicles (such as certificates of deposit) and may refer to results
published in various publications such as Changing Times, Forbes, Fortune,
Money, Barrons, Business Week, Stanger's Mutual Fund Monitor, The Stanger
Register, Stanger's Investment Adviser, The Wall Street Journal, New York Times,
Consumer Reports, Registered Representative, Financial Planning, Financial
Services Weekly, Financial World, U.S. News and World Report, Standard and
Poor's The Outlook, Investor's Daily and Personal Investor. The total return may
be used to compare the performance of a Fund against certain widely acknowledged
outside standards or indices for stock and bond market performance, such as the
Standard & Poor's 500 Composite Stock Price Index (the "S&P 500"), Dow Jones
Industrial Average, Consumer Price Index, Lehman Brothers Corporate Index and
Lehman Brothers T-Bond Index. The S&P 500 is a commonly quoted measure of stock
market performance and represents common stocks of companies of varying sizes
segmented across 90 different industries which are listed on the New York Stock
Exchange, the American Stock Exchange and traded over the NASDAQ National Market
System.
SERVICES OF THE ADVISERS
Phoenix/Zweig Advisers LLC ("Phoenix/Zweig") (formerly Zweig/Glaser Advisers
LLC) is the investment adviser to the Fund and is located at 900 Third Avenue,
New York, NY 10022. As of December 31, 1999, Phoenix/Zweig was managing twelve
funds with net assets of approximately $1.8 billion and two closed-end funds
with assets in excess of $1.4 billion. Phoenix/Zweig has been managing funds
since September 1989.
Phoenix/Zweig is a wholly-owned subsidiary of Phoenix Investment Partners,
Ltd. (`PXP"), a Delaware corporation, located at 56 Prospect St., Hartford, CT
06115. PXP is a publicly-traded independent registered investment advisory firm
and has served investors for over 70 years. As of December 31, 1998, PXP had
approximately $64.6 billion in assets under management through its investment
partners: Aberdeen Fund Managers, Inc. (Aberdeen) in Aberdeen, London, Singapore
and Fort Lauderdale; Duff & Phelps Investment Management Co. (Duff & Phelps) in
Chicago; Roger Engemann & Associates, Inc. (Engemann) in Pasadena; Seneca
Capital Management LLC (Seneca) in San Francisco, Phoenix/Zweig in New York; and
Phoenix Investment Counsel, Inc. (Goodwin, Hollister, and Oakhurst divisions) in
Hartford, CT, Sarasota, FL, and Scotts Valley, CA, respectively.
Overall responsibility for the management and supervision of the Trust and
the Fund rests with the Trustees of the Phoenix-Zweig Trust (the "Trustees").
Phoenix/Zweig's services under its Management Agreement are subject to the
direction of the Trustees.
The Management Agreement will continue in effect for two years if
specifically approved annually by a majority of the Board of Trustees who are
not parties to such contract or interested persons of any such party. The
Management Agreement may be terminated without penalty by either of the parties
on 60 days' written notice and must terminate in the event of its assignment.
The Management Agreement was last approved by the Trustees on January 12, 1999
and by the shareholders on February 25, 1999.
The Management Agreement provides that the Adviser is liable only for its
acts or omissions caused by its willful misfeasance, bad faith, or gross
negligence in the performance of its duties or reckless disregard of its
obligations under the Management Agreement. The Management Agreement permits the
Adviser to render services to others and to engage in other activities.
Pursuant to the Management Agreement, the Adviser: (a) supervises and assists in
the management of the assets of the Fund, furnishes the Fund with research,
statistical and advisory services and provides regular reports to the Trustees;
(b) provides advice
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and assistance with the operations of the Trust, compliance support, preparation
of the Trust's registration statements, proxy materials and other documents and
advice and assistance of the Adviser's General Counsel; (c) makes investment
decisions for the Trust; (d) ensures that investments follow the investment
objective, strategies, and policies of the Fund and comply with government
regulations; (e) selects brokers and dealers to execute transactions for the
Fund; and (f) furnishes office facilities, personnel necessary to provide
advisory services to the Fund, personnel to serve without salaries as officers
or agents of the Trust and compensation and expenses of any Trustees who are
also full-time employees of the Adviser or any of its affiliates.
The Fund's Subadviser is Zweig Consulting, LLC ("Zweig"). Its principal
offices are located at 900 Third Ave., New York, NY 10022. Zweig's services
under the Servicing Agreement are subject to the direction of both the Trustees
and Phoenix/Zweig. Under a Servicing Agreement with Phoenix/Zweig, Zweig's
duties to the Fund include promoting the interests of the Trust and research and
analysis.
In managing the assets of the Fund, the Adviser furnishes continuously an
investment program for the Fund consistent with the investment objectives and
policies of the Fund. More specifically, the Adviser determines from time to
time what securities shall be purchased for the Fund and what securities shall
be held or sold by the Fund. The Subadviser provides information that assists
the Adviser in determining dollar-weighted average portfolio maturity. Both the
Subadviser and Adviser are subject always to the provisions of the Trust's
Agreement and Declaration of Trust, By-Laws and its registration statement under
the 1940 Act and under the 1933 Act covering the Trust's shares, as filed with
the SEC, and to the investment objectives, policies and restrictions of the
Fund, as each of the same shall be from time to time in effect, and subject,
further, to such policies and instructions as the Trustees of the Trust may from
time to time establish. To carry out such determinations, the Adviser places
order for the investment and reinvestment of the Fund's assets.
The Trust pays the Adviser for its services pursuant to the Management
Agreement a monthly fee at the annual rate of 0.50% of the average daily net
assets of the Fund.
For services to the Fund during the fiscal years ended December 31, 1997,
1998 and 1999, the Adviser received fees of $257,892, $433,374 and $827,398,
respectively.
The Adviser has voluntarily undertaken to limit the expenses of the Fund
(exclusive of taxes, interest, brokerage commissions, 12b-1 fees and
extraordinary expenses) until April 30, 2001 to 0.35% of its average daily net
assets. During the years ended December 31, 1997, 1998 and 1999, the Adviser's
reimbursements to the Fund aggregated $251,454, $296,837 and $489,015,
respectively. The Adviser reserves the right to discontinue this policy at any
time after April 30, 2001.
The Adviser may draw upon the resources of the Distributor and its qualified
affiliates in rendering its services to the Trust. The Distributor or its
affiliates may provide the Adviser (without charge to the Trust) with investment
information and recommendations that may serve as the principal basis for
investment decisions with respect to certain assets of the Trust.
The Trust, its Adviser and Subadviser, and Distributor have each adopted a
Code of Ethics pursuant to Rule 17-j1 under the Investment Company Act of 1940.
Personnel subject to the Codes of Ethics may purchase and sell securities for
their personal accounts, including securities that may be purchased, sold or
held by the Fund, subject to certain restrictions and conditions. Generally,
personal securities transactions are subject to preclearance procedures,
reporting requirements and holding period rules. The Codes also restrict
personal securities transactions in private placements, initial public offerings
and securities in which the Fund has a pending order.
DETERMINATION OF NET ASSET VALUE
The net asset value per share of each class of shares is determined as of
2:00 p.m. eastern time and as of the close of regular trading on the New York
Stock Exchange ("NYSE") (normally 4:00 PM eastern time) on each day that the
NYSE is open. The NYSE is closed on the following holidays (or the weekdays on
which these holidays are celebrated when they fall on a weekend): New Year's
Day, Martin Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day and Christmas Day.
The Board of Trustees ("the Board") has determined that it is in the best
interests of the Fund and its shareholders to seek to maintain a stable net
asset value per share, and that the appropriate method for valuing portfolio
securities is the amortized cost method, provided that such method continues to
fairly reflect the market-based net asset value per share. The Board shall
continuously review this method of valuation and make changes that may be
necessary to assure that the Fund's instruments are valued at their fair value
as determined by the Board in good faith.
The Board has determined that the Fund will comply with the conditions of
Rule 2a-7 under the Act regarding the amortized cost method of valuing portfolio
securities. Under Rule 2a-7, the Board is obligated, as a particular
responsibility within the overall duty of care owed to the Fund's shareholders,
to establish procedures reasonably designed, taking into account current market
conditions and the Fund's investment objectives, to stabilize the net asset
value per share of the Fund for purposes of distribution and redemption, at
$1.00 per share. These procedures include periodically monitoring, as the Board
deems appropriate, at such
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intervals as are reasonable in light of current market conditions, the
relationship between the net asset value per share based upon the amortized cost
method of valuation and the net asset value per share based upon available
indications of market value. The Board will consider what steps should be taken,
if any, in the event of a difference of more than 1/2 of 1% between the
amortized cost value and the market value per share. The Board will take such
steps as it considers appropriate (e.g., redemption in kind, selling portfolio
instruments prior to maturity to realize capital gains or losses, shortening the
average portfolio maturity, withholding dividends, or utilizing a net asset
value per share determined by using market quotations) to minimize any material
dilution or other unfair results that might arise from differences between the
net asset value per share based upon the amortized cost method of valuation and
the net asset value per share based upon market value.
Rule 2a-7 requires that a dollar-weighted average portfolio maturity of not
more than 90 days, appropriate to the objective of maintaining a stable net
asset value of $1.00 per share, be maintained, and precludes the purchase of any
instrument with a remaining time to maturity of more than 397 calendar days.
However, the underlying securities used as collateral for repurchase agreements
are not subject to these restrictions, because a repurchase agreement is deemed
to have a maturity equal to the period remaining until the date on which the
repurchase of the underlying securities is deemed to occur. Should the
disposition of a portfolio security result in a dollar-weighted average
portfolio maturity of more than 90 days, the Fund will invest its available cash
in a manner that will reduce such average maturity to 90 days or less as soon as
reasonably practicable. Rule 2a-7 also requires the Fund to limit its
investments to instruments that the Board determines present minimal credit
risks and that have been given one of the two highest rating categories by
nationally recognized statistical rating organizations, or, in the case of
instruments that are not so rated, are of comparable quality as determined under
procedures established by the Board.
It is the normal practice of the Fund to hold portfolio securities to
maturity and realize their par values, unless a prior sale or other disposition
thereof is mandated by redemption requirements or other extraordinary
circumstances. A debt security held to maturity is redeemable by its issuer at
its principal amount plus accrued interest. Under the amortized cost method of
valuation traditionally employed by institutions for valuation of money market
instruments, neither the amount of daily income nor the net asset value is
affected by any unrealized appreciation or depreciation of the portfolio. In
periods of declining interest rates, the indicated daily yield on shares of the
Fund (computed by dividing the annualized daily income on the Fund's portfolio
by the net asset value computed as above) may tend to be higher than a similar
computation made by utilizing a method of valuation based upon market prices and
estimates. The Fund may, to a limited extent, engage in short-term trading to
attempt to take advantage of short-term market variations, or may dispose of a
portfolio security prior to its maturity if the Adviser believes such
disposition advisable, or necessary to generate cash to satisfy redemptions. In
such cases, the Fund may realize a gain or loss.
Class M Shares are entitled to dividends as declared by the Board and, on
liquidation of the Fund, are entitled to receive their share of the net assets
of the Fund. Shareholders have no preemptive rights. The Trust's fiscal year
ends on December 31.
HOW TO BUY AND SELL SHARES
Reference is made to the materials in the Prospectus under the headings "How
to Buy Shares" and "How to Redeem Shares," which describe the methods of
purchase and redemption of Fund shares. The following is additional information
related to certain of those methods. Class M Shares are not exchangeable with
any of the Phoenix-Zweig Funds or any other Affiliated Phoenix Fund.
SWEEP PROGRAMS
Class M Shares of the Fund may be purchased through certain participating
securities dealers and/or banks (Institutions) which have established sweep
programs under which cash in their customers' accounts may be automatically
invested in the Fund. The customers' rights under these programs are governed by
the provisions of the particular Institution's program and the details of the
programs vary. The description below, while generally followed, should be
considered as illustrative of how such programs work, but may not be true of a
particular program.
Typically, in these programs each participating customer, pursuant to an
agreement executed with a particular Institution, becomes the beneficial owner
of specific shares of the Fund which may be purchased, redeemed and held by the
Institution in accordance with the customer's instructions and may fully
exercise all rights as a shareholder. The participating Institution holds shares
registered in its name, as agent for the customer, on the books of the Fund. A
statement regarding the customer's shares is generally supplied to the customer
monthly, and confirmations of all transactions for the account of the customer
normally are available to the customer promptly upon request. In addition, each
customer is sent proxies, periodic reports and other information from the Trust
with regard to the shares. The customer's shares are fully assignable and may be
encumbered by the customer. The sweep agreement can be terminated by the
customer at any time, without affecting beneficial ownership of the shares. In
order to obtain the benefits of this service, a customer typically is required
to maintain a minimum balance subject to a monthly maintenance fee, or a higher
minimum balance for which no monthly fee would be imposed. In either case, a
penalty fee is imposed if the minimum is not maintained. In general, the
automatic investment in shares of the Fund occurs on the same day that
withdrawals are made from the customer's account by the participating
Institution, but there may be a greater time lag between the
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removal of funds from an account and their investment in shares of the Fund.
Depending on the particular program of the participating Institution, the
customer may or may not earn interest on the funds being swept during this lag.
All agreements which relate to the service are with the participating
Institution. Neither the Distributor nor the Fund is a party to any of those
agreements and no part of the compensation received by the participating
Institution flows to the Fund or to the Distributor or to any of their
affiliates either directly or indirectly. Information concerning those programs
and any related charges or fees is provided by the particular Institution prior
to purchases of the Class M Shares. Any fees charged by a participating
Institution effectively reduces the Fund's yield for those customers.
If a participating bank were prohibited from offering the sweep program, it
is expected that customers of the participating bank who seek to invest in the
Fund would have to purchase and redeem shares directly through the Fund's
transfer agent, State Street Bank and Trust Company.
CHECK SERVICE
An investor may request in writing that the Fund establish a check service
("Check Service") with Equity Planning as agent to draw against the investor's
Fund account. Upon receipt of such request, the Fund will provide checks
("Checks"). Checks may be made payable to the order of anyone in an amount of
$500 or more. Class M Shares held under retirement plans or IRAs are not
eligible for the Check Service. The Check Service is subject to Equity
Planning's customary rules and regulations governing checking accounts, and the
Fund and Equity Planning each reserve the right to change or suspend the Check
Service. The Check Service may be discontinued at any time or for any investor.
The Check Service does not create a checking or other bank account relationship
between the shareholder and Equity Planning or the Fund.
When a Check is presented to Equity Planning for payment, through normal
banking channels, Equity Planning, as the investor's agent, causes the Fund to
redeem at the net asset value a sufficient number of full and fractional Class M
Shares to cover the amount of the Check. If there is an insufficient number of
shares in your account, the Check is marked insufficient funds and is returned
unpaid to the presenting bank. Checks will only clear Equity Planning if drawn
against funds which have been invested for at least 15 days, except for wire
investments. Cancelled (paid) Checks are returned to you; however, this practice
may be discontinued in the future or a charge for such service may be imposed.
By requesting the Check Service, you agree to indemnify and hold harmless Equity
Planning, the Fund, and any of their agents from any liability for honoring
Checks or for effecting or facilitating redemptions pursuant to the Check
Service or for returning Checks which have not been accepted. The Check Service
enables you to receive the daily dividends declared on the shares to be redeemed
until the day that the Check is presented to Equity Planning for payment. Since
the aggregate amount in your account changes each day because of the daily
dividend, you should not attempt to withdraw the full amount in your account by
using the Check Service.
The Fund reserves the right in its sole discretion to reject any purchase
order in whole or in part for any reason that it deems sufficient and to change
the minimum investment and subsequent purchases in the Fund.
No stock certificates will be issued unless specifically requested in writing
by an investor. Instead, an account will be established for each investor and
all shares purchased or received, including those obtained through reinvestment
of distributions, will be registered on the books of the Fund and credited to
such account.
TAX SHELTERED RETIREMENT PLANS
Shares of the Trust are offered in connection with the following qualified
prototype retirement plans: IRA, Rollover IRA, SEP-IRA, SIMPLE IRA, Roth IRA,
401(k), Profit-Sharing, Money Purchase Pension Plans and 403(b) Retirement
Plans. Write or call Equity Planning at (800) 243-1574 for further information
about the plans.
THE DISTRIBUTOR AND DISTRIBUTION PLANS
Pursuant to its Distribution Agreement with the Trust (the "Distribution
Agreement"), Phoenix Equity Planning Corporation ("Equity Planning" or the
"Distributor") acts as distributor of the Trust's shares. The Distribution
Agreement naming Equity Planning as Distributor was last approved by the
Trustees on January 12, 1999.
The Trust has adopted a separate Rule 12b-1 Plan for the Class M Shares (the
"Class M Plan"). The Class M Plan provides that the Distributor may enter into
Service Agreements with securities dealers, financial institutions, banks, and
other industry professionals for distribution, promotion and administration of
and/or servicing investors in Class M Shares. Service payments under the Class M
Plan are paid in equal amounts by the Fund and the Adviser, or the Fund and the
Adviser reimburse the Distributor equally for service payments to a service
organization, in an amount not exceeding 0.30% per annum of the average daily
net asset value of the Class M Shares. The Class M Plan also provides that the
Fund will pay the costs and expenses connected with the printing and
distribution of the Fund's prospectuses, shareholder reports, and any
promotional material for other than current Fund shareholders, in an amount not
to exceed $100,000 per annum. The Trust has also adopted a distribution plan for
the Class A and
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Class C Shares, and for the Class B Shares of the Fund (the "Class A and Class C
and Class B Plans"), in accordance with Rule 12b-1 under the 1940 Act, to
compensate the Distributor for the services it provides and for the expenses it
bears under the Distribution Agreement. Each class of shares subject to the
Class A and C and Class B Plans pays a service fee at the rate of 0.25% per
annum of the daily average net assets of such class and a distribution fee based
on average daily net assets at the following rates: for Class A Shares, 0.05%
per annum; for Class B Shares, 0.75% per annum, and for Class C Shares, 0.05%
per annum.
A report of the amounts expended under the Class M Plan and the Class A and
Class C and Class B Plans (collectively, the "Plans") must be made to the Board
of Trustees and reviewed by the Board at least quarterly. In addition, the Plans
provide that they may not be amended to increase materially the costs which the
Trust may bear for distribution pursuant to the Plans without shareholder
approval and that other material amendments to the Plans must be approved by a
majority of the Board, including a majority of the Board who are neither
interested persons of the Trust (as defined in the 1940 Act) nor have any direct
or indirect financial interest in the operation of the Plans (the "Qualified
Trustees"), by vote cast in person at a meeting called for the purpose of
considering such amendments.
The Plans are subject to annual approval by a majority of the Board of
Trustees, including a majority of the Qualified Trustees, by vote cast in person
at a meeting called for the purpose of voting on the Plans. The Plans are
terminable at any time by vote of a majority of the Qualified Trustees or, with
respect to any Class of a Series, by vote of a majority of the shares of such
Class. Pursuant to the Plans, any new trustees who are not interested persons
must be nominated by existing trustees who are not interested persons. If the
Plans are terminated (or not renewed) with respect to one or more Classes of
shares, they may continue in effect with respect to any Class or Fund as to
which they have not been terminated (or have been renewed).
Benefits from the Plans may accrue to the Trust and its shareholders from the
growth in assets due to sales of shares to the public pursuant to the Plans.
Increases in a Fund's net assets from sales pursuant to its Plan may benefit
shareholders by reducing per share expenses, permitting increased investment
flexibility and diversification of the Fund's assets, and facilitating economies
of scale (e.g., block purchases) in the Fund's securities transactions. Under
their terms, the Plans will continue from year to year, provided that such
continuance is approved annually by a vote of the Trustees in the manner
described above. The continuance of the Plan was last approved by the Board of
Trustees, including a majority of the Qualified Trustees, at a meeting held on
February 28, 2000. The adoption of the Class M Plan was approved by the Board of
Trustees at a meeting held on December 14, 1993, and was approved by the initial
shareholders of the Class M Shares on April 25, 1994. Prior to approving the
continuance of the Plan and the adoption of the Class M Plan, the Board
requested and received from the Distributor all the information which it deemed
necessary to arrive at an informed determination as to such continuance and
adoption of the Plans. In making its determination to continue the Plan, the
Board considered, among other factors: (1) the Trust's experience under the Plan
and the previous Rule 12b-1 Plan for the Class A Shares of the Trust, and
whether such experience indicates that the Plans would operate as anticipated;
(2) the benefits the Trust had obtained under the Plan and the previous Class A
Rule 12b-1 Plan and would be likely to obtain under the Plans; (3) what services
would be provided under the Plans by the Distributor to the Trust and its
shareholders; and (4) the reasonableness of the fees to be paid to the
Distributor for its services under the Plans. Based upon its review, the Board,
including each of the Qualified Trustees, determined that the continuance of the
Plan would be in the best interest of the Trust, and that there was a reasonable
likelihood that the Plans would benefit the Trust and its shareholders. In the
Board's quarterly review of the Plans, they will consider their continued
appropriateness and the level of compensation provided therein.
Because all amounts paid pursuant to the Plans are paid to the Distributor,
the Distributor and its officers, directors and employees, all may be deemed to
have a direct or indirect financial interest in the operation of the Plans. None
of the Trustees who is not an interested person of the Trust has a direct or
indirect financial interest in the operation of the Plans.
The Board of Trustees has also adopted a Rule 18f-3 Multi-Class Share Plan
permitting the issuance of shares in multiple classes.
7
<PAGE>
MANAGEMENT OF THE TRUST
The Trustees have responsibility for management of the business of the Trust.
The officers of the Trust are responsible for its day to day operations. Set
forth below is certain information concerning the Trustees and officers.
<TABLE>
<CAPTION>
TRUSTEES AND OFFICERS
POSITION WITH
NAME, ADDRESS AND AGE THE TRUST PRINCIPAL OCCUPATION DURING PAST 5 YEARS
--------------------- --------- ----------------------------------------
<S> <C> <C>
James Balog (71) Trustee Retired; Director and Member of the Audit, Investment, Stock
2205 N. Southwinds Blvd. Option and Compensation Committees of Transatlantic Holdings,
Vero Beach, FL 32963 Inc. (reinsurance); Director and Member of the Executive
Committee of Elan, Plc (pharmaceuticals); Director and Member
of the Executive and Investment & Credit Committees of Great
West Life and Annuity Insurance Company; Trustee of the
Phoenix-Euclid Funds. Former Director, Chairman of the Audit
Committee and Member of the Executive Committee of A.L. Pharma,
Inc. (health care); Chairman of 1838 Investment Advisors, L.P.
and Chairman of Lambert Brussels Capital Corporation
(investments). Former Member of the Technical Advisory Board of
Galen Partners (health care).
Claire B. Benenson (81) Trustee Consultant on Financial Conferences, The New School for Social
870 U.N. Plaza Research. Director of The Burnham Fund Inc. and Trustee of the
New York, NY 10017 Phoenix-Euclid Funds. President of the Money Marketeers of New
York University. Trustee of Simms Global Fund. Former Director
of Zweig Cash Fund Inc. and Director of Financial Conferences
and Chairman, Department of Business and Financial Affairs, The
New School for Social Research.
S. Leland Dill (69) Trustee Trustee and Chairman of the Audit Committee of Deutsche Asset
5070 North Ocean Dr. Management mutual funds. Trustee, Phoenix-Euclid Funds. Former
Singer Island, FL 33404 Director and Chairman of the Audit Committee of Coutts & Co.
Trust Holdings Limited, Coutts & Co. Group, Coutts & Co.
International (USA) (private banking). Former partner of Peat
Marwick Mitchell & Co. and Director of Zweig Cash Fund Inc. and
Vintners International Company, Inc. (winery).
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
POSITION WITH
NAME, ADDRESS AND AGE THE TRUST PRINCIPAL OCCUPATION DURING PAST 5 YEARS
--------------------- --------- ----------------------------------------
<S> <C> <C>
*Philip R. McLoughlin (54) Trustee Chairman (1997-present), Director (1995-present), Vice Chairman
56 Prospect Street (1995-1997) and Chief Executive Officer (1995-present), Phoenix
Hartford, CT 06115 Investment Partners, Ltd. Director (1994-present) and Executive
Vice President, Investments (1998-present), Phoenix Home Life
Mutual Insurance Company. Director/Trustee and President, Phoenix
Funds (1989-present). Trustee and President, Phoenix-Aberdeen
Series Fund and Phoenix Duff & Phelps Institutional Mutual Funds
(1996-present). Director, Duff & Phelps Utilities Tax-Free Income
Inc. (1995-present) and Duff & Phelps Utility and Corporate Bond
Trust Inc. (1995-present). Trustee, Phoenix-Seneca Funds
(1999-present). Chairman, Phoenix-Zweig Trust (2000-present).
Director (1983-present) and Chairman (1995-present), Phoenix
Investment Counsel, Inc. Director (1984-present) and President
(1990-1999), Phoenix Equity Planning Corporation. Chairman and
Chief Executive Officer, Phoenix/Zweig Advisers LLC
(1999-present). Director, PXRE Corporation (Delaware)
(1985-present) and World Trust Fund (1991-present). Director and
Executive Vice President, Phoenix Life and Annuity Company
(1996-present). Director and Executive Vice President, PHL
Variable Insurance Company (1995-present). Director, Phoenix
Charter Oak Trust Company (1996-present). Director and Vice
President, PM Holdings, Inc. (1985-present). Director
(1992-present) and President (1992-1994), W.S. Griffith & Co.,
Inc. Director, PHL Associates Inc. (1995-present).
Donald B. Romans (69) Trustee President of Romans & Company, (private investors and financial
233 East Wacker Dr. consultants); Director of the Burnham Fund Inc. and Trustee of
Chicago, IL 60601 the Phoenix-Euclid Funds. Former Consultant to and Executive
Vice President and Chief Financial Officer of Bally Manufacturing
Corporation, and Director of Zweig Cash Fund Inc.
Martin E. Zweig (58) President President of the Subadviser; President of Phoenix-Euclid Funds;
900 Third Avenue Chairman of the Board and President of The Zweig Total Return
New York, NY 10022 Fund, Inc. and The Zweig Fund, Inc.; Managing Director of
Zweig-DiMenna Associates LLC; President of Zweig-DiMenna
International Managers, Inc.; Zweig-Di Menna Associates, Inc.
and Gotham Advisors, Inc.; Member of the Undergraduate
Executive Board of the Wharton School, University of
Pennsylvania; Trustee, Manhattan Institute. Former President of
Zweig Cash Fund Inc. Former President and Director of Zweig
Advisors Inc., Zweig Total Return Advisors, Inc. and Zweig
Securities Advisory Services Inc. General Partner of Zweig
Katzen Investors, L.P.; Former Chairman of the Adviser and
Euclid Advisors LLC.
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
POSITION WITH
NAME, ADDRESS AND AGE THE TRUST PRINCIPAL OCCUPATION DURING PAST 5 YEARS
--------------------- --------- ----------------------------------------
<S> <C> <C>
Michael E. Haylon (42) Executive Vice Director and Executive Vice President, Investments, Phoenix
56 Prospect Street President Investment Partners, Ltd. (1995-present). Executive Vice
Hartford, CT 06115 President, Phoenix/Zweig Advisers LLC (1999-present). Director
(1994-present), President (1995-present), Executive Vice
President (1994-1995), Vice President (1991-1994), Phoenix
Investment Counsel, Inc. Director, Phoenix Equity Planning
Corporation (1995-present). Executive Vice President, Phoenix
Funds (1993-present), Phoenix-Aberdeen Series Fund
(1996-present) and Phoenix-Seneca Funds (2000-present).
Executive Vice President (1997-present), Vice President
(1996-1997), Phoenix Duff & Phelps Institutional Mutual Funds.
Senior Vice President, Securities Investments, Phoenix Home
Life Mutual Insurance Company (1993-1995).
William R. Moyer (56) Executive Vice Executive Vice President and Chief Financial Officer
56 Prospect Street President (1999-present), Senior Vice President and Chief Financial
Hartford, CT 06115 Officer, Phoenix Investment Partners, Ltd. (1995-1999).
Director (1998-present), Senior Vice President, Finance
(1990-present), Chief Financial Officer (1996-present), and
Treasurer (1994-1996 and 1998-present), Phoenix Equity Planning
Corporation. Director (1998-present), Senior Vice President
(1990-present), Chief Financial Officer (1996-present) and
Treasurer (1994-present), Phoenix Investment Counsel, Inc.
Senior Vice President and Chief Financial Officer, Duff &
Phelps Investment Management Co. (1996-present). Vice
President, Phoenix Funds (1990-present), Phoenix-Duff & Phelps
Institutional Mutual Funds (1996-present), Phoenix-Aberdeen
Series Fund (1996-present). Executive Vice President,
Phoenix-Seneca Funds (2000-present). Senior Vice President and
Chief Financial Officer, W.S. Griffith & Co., Inc. (1992-1995)
and Townsend Financial Advisers, Inc. (1993-1995).
John F. Sharry (48) Executive Vice President, Retail Division (1999-present), Executive Vice
56 Prospect Street President President, Retail Division (1997-1999), Phoenix Investment
Hartford, CT 06115 Partners, Ltd. Managing Director, Retail Distribution, Phoenix
Equity Planning Corporation (1995-1997). Executive Vice
President, Phoenix Funds, Phoenix-Aberdeen Series Funds
(1998-present) and Phoenix-Seneca Funds (2000-present).
Managing Director, Director and National Sales Manager, Putnam
Mutual Funds (1992-1995).
Carlton Neel (32) Senior Vice President First Vice President of Phoenix/Zweig Advisers LLC. Former Vice
900 Third Avenue President of Zweig Advisors Inc. and Zweig Total Return
New York, NY 10022 Advisors, Inc. Former Vice President of J.P. Morgan & Co., Inc.
Barry Mandinach (44) First Vice President Executive Vice President of PXP Securities Corp., Senior Vice
900 Third Avenue President of Phoenix/Zweig Advisers LLC. and Euclid Advisors
New York, NY 10022 LLC, and First Vice President of the Phoenix-Euclid Funds.
Beth Abraham (44) Assistant Vice President Assistant Vice President of Phoenix/Zweig Advisers LLC and the
900 Third Avenue Phoenix-Euclid Funds. Former self-employed consultant to the
New York, NY 10022 mutual fund industry.
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
POSITION WITH
NAME, ADDRESS AND AGE THE TRUST PRINCIPAL OCCUPATION DURING PAST 5 YEARS
--------------------- --------- ----------------------------------------
David O'Brien (35) Assistant Vice President Assistant Vice President of Phoenix-Euclid Funds. Assistant
900 Third Avenue Portfolio Manager of Phoenix-Euclid Market Neutral Fund, the
New York, NY 10022 Phoenix-Zweig Strategy Fund, Phoenix-Zweig Appreciation Fund
and Phoenix-Zweig Growth & Income Fund. Formerly, Assistant
Vice President, PaineWebber (1993-1998).
Marc Baltuch (55) Secretary Director and President of Watermark Securities, Inc. Secretary
900 Third Avenue of Phoenix-Euclid Funds; Assistant Secretary of Gotham
New York, NY 10022 Advisors, Inc. Former First Vice President of the Phoenix/Zweig
Advisers LLC and of Phoenix-Euclid Advisors LLC; Secretary of
Zweig Cash Fund Inc. Former First Vice President, Chief Compliance
Officer and Secretary of PXP Securities Corp.
Nancy G. Curtiss (48) Treasurer Vice President, Fund Accounting (1994-2000) and Treasurer
56 Prospect Street (1996-2000), Phoenix Equity Planning Corporation. Treasurer,
Hartford, CT 06115 Phoenix Funds (1994-present), Phoenix Duff & Phelps
Institutional Mutual Funds (1996-present), Phoenix-Aberdeen Series
Fund (1996-present), and Phoenix-Seneca Funds (2000-present).
Second Vice President and Treasurer, Fund Accounting, Phoenix Home
Life Mutual Insurance Company (1994-1995).
</TABLE>
*Designates a trustee who is an interested person of the trust within the
meaning of the 1940 Act.
COMPENSATION OF TRUSTEES AND OFFICERS
For the fiscal year ended December 31, 1999, the fees and expenses of
disinterested trustees, as a group, were $73,000. Those trustees and officers of
the Trust who are affiliated with the Subadviser or the Adviser are not
separately compensated for their services as trustees or officers of the Trust.
The Trust currently pays each of its disinterested trustees a fee of $5,000 per
year, plus $1,500 per meeting attended ($500 per phone meeting) and reimburses
their expenses for attendance at meetings, all of which is prorated on the basis
of the assets of each fund. In addition, each such trustee receives a fee of
$1,000 per year from each fund. Trustees may be removed from office at any
meeting of shareholders by a vote of two-thirds of the outstanding shares of the
Trust. Except as set forth above, the trustees shall continue to hold office and
may appoint their successors.
For the Trust's last fiscal year, the Trustees received the following
compensation:
<TABLE>
<CAPTION>
PENSION OR
AGGREGATE RETIREMENT BENEFITS ESTIMATED TOTAL
COMPENSATION ACCRUED AS PART ANNUAL BENEFITS COMPENSATION
NAME FROM THE TRUST OF TRUST EXPENSES UPON RETIREMENT PAID TO TRUSTEES
------------------- -------------- ----------------- --------------- ----------------
<S> <C> <C> <C> <C>
James Balog $17,500 $22,500
Claire B. Benenson $18,500 None None $24,000
S. Leland Dill $18,500 for any for any $24,000
Eugene J. Glaser* $0 Trustee Trustee $0
Donald B. Romans $18,500 $24,000
</TABLE>
----------
*"Interested Person" as defined under the Investment Company Act.
At November 24, 2000, except for Dr. Martin E. Zweig, the Trustees and
officers as a group owned less than 1% of any Class of any Fund of the Trust.
PRINCIPAL SHAREHOLDERS
The following table sets forth information as of November 27, 2000 with
respect to each person who beneficially or of record owns 5% or more of any
class of the Fund's equity securities.
11
<PAGE>
<TABLE>
<CAPTION>
NAME OF SHAREHOLDER FUND AND CLASS PERCENT OF FUND
------------------- -------------- ---------------
<S> <C> <C>
Hare & Co. Government Cash Fund Class M 30.96%
Bank of New York
Attn. Stif/Master Note
1 Wall Street, Fl. 2
New York, NY 10005-2501
Edward D. Jones and CO F/A/O Government Cash Fund Class C 5.19%
Detrek Engineering Inc.
Retirement Plan
P.O. Box 2500
Maryland Heights, MO 63043-8500
NFSC DEBO#A7T-142743 Government Cash Fund Class B 5.37%
NFSC/FMTC IRA
FBO Donald H. Lutz
153 Tobie Avenue
Pawtucket, RI 02861-3215
NFSC FEBO Government Cash Fund Class C 5.49%
Laborer's Intl of NA Local 860
4220 Prospect Avenue
Cleveland, OH 44103-4367
Prudential Securities Government Cash Fund Class A 5.65%
FBO Roger Markle IRA
1145 Dominguez, Ste. #J
Carson, CA 90746-3550
Prudential Securities FBO Government Cash Fund Class C 5.60%
Stanley E. Coleby
Sharon A. Coleby JTWROS
2432 Briar Creek Circle
Salt Lake City, UT 84117-4575
William J. Ragen, Ttee Government Cash Fund Class C 5.59%
WRL Inc. PSP Tr
111 W. Jackson Boulevard, Ste. 1144
Chicago, IL 60604-3502
Salomon Smith Barney Inc. Government Cash Fund Class B 9.84%
333 West 34th Street - 3rd Fl.
New York, NY 10001
Sand Dollar Limited Partnership Government Cash Fund Class A 5.52%
5 Puerto Royal
San Clemente, CA 92672-6048
Jack Schatz Government Cash Fund Class A 7.55%
Susan Schatz Ttees
Corporate Concepts Ltd., PSP
1104 Tower Drive
Edgewater, NJ 07020-2213
Nicholas Schaus Government Cash Fund Class A 8.69%
Barbara D. Schaus JT TEN
137 Anchor Drive
Vero Beach, FL 32963-2941
State Street Bank & Trust Government Cash Fund Class C 7.99%
Cust for the IRA Rollover of Rana J. Khan
3722 Augusta Lane
Elkhart, IN 46517-3854
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
NAME OF SHAREHOLDER FUND AND CLASS PERCENT OF FUND
------------------- -------------- ---------------
<S> <C> <C>
Martin Zweig Ttee Government Cash Fund Class I 93.27%
Marty & Barbara Zweig
Foundation Inc.
900 Third Avenue, Fl. 31
New York, NY 10022-4728
Martin Zweig Government Cash Fund Class M 6.61%
Tax Account
900 Third Avenue, Fl. 30
New York, NY 10022-4728
Martin E. Zweig Personal Government Cash Fund Class M 9.54%
C/O Zweig Companies
900 Third Avenue, Fl. 30
New York, NY 10022-4728
</TABLE>
ADDITIONAL INFORMATION
CAPITAL STOCK
The capitalization of the Trust consists solely of an unlimited number of
shares of beneficial interest. The Trust currently offers shares in different
Funds and different classes of those Funds. Holders of shares of a Fund have
equal rights with regard to voting, redemptions, dividends, distributions, and
liquidations with respect to that Fund. Shareholders of all Funds vote on the
election of Trustees. On matters affecting an individual Fund (such as approval
of an investment advisory agreement or a change in fundamental investment
policies) and on matters affecting an individual class (such as approval of
matters relating to a Plan of Distribution for a particular class of shares), a
separate vote of that Fund or Class is required. The Trust does not hold regular
meetings of shareholders. The Trustees will call a meeting when at least 10% of
the outstanding shares so request in writing. If the Trustees fail to call a
meeting after being so notified, the Shareholders may call the meeting. The
Trustees will assist the Shareholders by identifying other shareholders or
mailing communications, as required under Section 16(c) of the 1940 Act.
Shares are fully paid, nonassessable, redeemable and fully transferable when
they are issued. Shares do not have cumulative voting rights, preemptive rights
or subscription rights. The assets received by the Trust for the issue or sale
of shares of each Fund, and any class thereof and all income, earnings, profits
and proceeds thereof, are allocated to such Fund, and class, respectively,
subject only to the rights of creditors, and constitute the underlying assets of
such Fund or class. The underlying assets of each Fund are required to be
segregated on the books of account, and are to be charged with the expenses in
respect to such Fund and with a share of the general expenses of the Trust. Any
general expenses of the Trust not readily identifiable as belonging to a
particular Fund or class will be allocated by or under the direction of the
Trustees as they determine fair and equitable.
Unlike the stockholders of a corporation, there is a possibility that the
shareholders of a business trust such as the Trust may be personally liable for
debts or claims against the Trust. The Declaration of Trust provides that
shareholders shall not be subject to any personal liability for the acts or
obligations of the Trust and that every written agreement, undertaking or
obligation made or issued by the Trust shall contain a provision to that effect.
The Declaration of Trust provides for indemnification out of the Trust property
for all losses and expenses of any shareholder held personally liable for the
obligations of the Trust. Thus, the risk of a shareholder incurring financial
loss on account of shareholder liability, which is considered remote, is limited
to circumstances in which the Trust itself would be unable to meet its
obligations.
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP, 1177 Avenue of the Americas, New York, NY 10036,
serves as the independent accountants for the Trust. PricewaterhouseCoopers LLP
audits the Trust's annual financial statements and expresses an opinion thereon.
CUSTODIAN AND TRANSFER AGENT
The Bank of New York, One Wall Street, New York, New York 10286, serves as
custodian of the Trust's assets.
Phoenix Equity Planning Corporation ("PEPCO"), 56 Prospect Street, P.O. Box
150480, Hartford, CT 06115-0480, serves as Transfer Agent for the Fund. PEPCO
receives a fee equivalent to $13.50 for each shareholder account, plus
out-of-pocket expenses. The Transfer Agent is authorized to engage subagents to
perform certain shareholder servicing functions from time to time for which such
agents are paid a fee by the Transfer Agent. State Street Bank and Trust Company
serves as subtransfer agent pursuant to a Subtransfer Agency Agreement.
13
<PAGE>
REPORT TO SHAREHOLDERS
The fiscal year of the Trust ends on December 31. The Trust will send
financial statements to its shareholders at least semiannually. An Annual Report
containing financial statements audited by the Trust's independent accountants
will be sent to shareholders each year, and is available without charge upon
request.
FINANCIAL STATEMENTS
The Financial Statements for the Fund's fiscal year ended December 31, 1999
and June 30, 2000, appearing in the Trust's 1999 Annual and Semi-Annual Reports
to Shareholders, are incorporated herein by reference.
14
<PAGE>
PHOENIX-ZWEIG APPRECIATION FUND
INVESTMENTS AT JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMON STOCKS--64.7%
AGRICULTURAL PRODUCTS--0.1%
Delta and Pine Land Co.................. 10,000 $ 250,625
AIR FREIGHT--0.4%
Cheap Tickets, Inc.(b).................. 17,800 213,600
Expeditors International of Washington,
Inc..................................... 10,100 479,750
------------
693,350
------------
AUTO PARTS & EQUIPMENT--0.2%
Applied Industrial Technologies, Inc.... 900 14,737
Superior Industries International,
Inc..................................... 1,000 25,750
Tower Automotive, Inc.(b)............... 19,400 242,500
------------
282,987
------------
BANKS (REGIONAL)--1.8%
BancWest Corp........................... 10,700 175,881
Cathay Bancorp, Inc..................... 3,100 143,762
City National Corp...................... 17,100 607,050
Colonial BancGroup, Inc. (The).......... 29,900 287,787
Greater Bay Bancorp..................... 3,400 158,950
Hibernia Corp. Class A.................. 43,000 467,625
Investors Financial Services Corp....... 12,200 484,187
Republic Bancorp, Inc................... 12,500 111,719
Silicon Valley Bancshares(b)............ 9,600 409,200
Southwest Bancorporation of Texas,
Inc.(b)................................. 12,100 251,075
------------
3,097,236
------------
BEVERAGES (ALCOHOLIC)--0.1%
Canandaigua Brands, Inc. Class A(b)..... 3,200 161,400
BEVERAGES (NON-ALCOHOLIC)--0.2%
Cott Corp.(b)........................... 63,900 383,400
BIOTECHNOLOGY--0.9%
AVANT Immunotherapeutics, Inc.(b)....... 3,100 32,744
Aphton Corp.(b)......................... 2,600 66,950
BioMarin Pharmaceutical, Inc.(b)........ 3,000 51,000
Cephalon, Inc.(b)....................... 3,000 179,625
Cerus Corp.(b).......................... 600 30,712
Connetics Corp.(b)...................... 1,400 20,562
Enzon, Inc.(b).......................... 6,700 284,750
Genta, Inc.(b).......................... 3,600 23,400
Genzyme Transgenics Corp.(b)............ 2,100 56,962
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
BIOTECHNOLOGY--CONTINUED
Immune Response Corp. (The)(b).......... 300 $ 3,262
Incyte Genomics, Inc.(b)................ 5,200 427,375
NPS Pharmaceuticals, Inc.(b)............ 700 18,725
Nabi(b)................................. 9,100 66,544
Targeted Genetics Corp.(b).............. 1,800 26,775
Techne Corp.(b)......................... 1,200 156,000
Techniclone Corp.(b).................... 4,000 15,500
Valentis, Inc.(b)....................... 3,200 37,600
------------
1,498,486
------------
BUILDING MATERIALS--0.4%
Johns Manville Corp..................... 33,700 444,419
NCI Building Systems, Inc.(b)........... 16,600 336,150
------------
780,569
------------
CHEMICALS--0.2%
Airgas, Inc.(b)......................... 12,400 70,525
Georgia Gulf Corp....................... 13,600 283,050
------------
353,575
------------
CHEMICALS (DIVERSIFIED)--0.3%
Engelhard Corp.......................... 28,700 489,694
CHEMICALS (SPECIALTY)--0.4%
ATMI, Inc.(b)........................... 7,400 344,100
Cambrex Corp............................ 5,900 265,500
------------
609,600
------------
COMMUNICATIONS EQUIPMENT--2.5%
ADTRAN, Inc.(b)......................... 5,700 341,287
Advanced Fibre Communications,
Inc.(b)................................. 7,000 317,187
Andrew Corp.(b)......................... 5,500 184,594
Aspect Communications Corp.(b).......... 4,200 165,112
Audiovox Corp. Class A(b)............... 4,100 90,456
Brightpoint, Inc.(b).................... 30,100 260,553
Cable Design Technologies Corp.(b)...... 11,100 371,850
Carrier Access Corp.(b)................. 4,200 222,075
CommScope, Inc.(b)...................... 7,200 295,200
Digital Microwave Corp.(b).............. 3,800 144,875
General Semiconductor, Inc.(b).......... 19,600 289,100
Glenayre Technologies, Inc.(b).......... 14,100 148,931
Harmonic, Inc.(b)....................... 6,587 163,028
Mitel Corp.(b).......................... 24,500 514,500
</TABLE>
See Notes to Financial Statements 3
<PAGE>
Phoenix-Zweig Appreciation Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMUNICATIONS EQUIPMENT--CONTINUED
Natural MicroSystems Corp.(b)........... 700 $ 78,706
Polycom, Inc.(b)........................ 1,900 178,778
SonicWall, Inc.(b)...................... 800 70,450
Tekelec(b).............................. 4,200 202,387
Terayon Communication Systems,
Inc.(b)................................. 3,500 224,820
Westell Technologies, Inc.(b)........... 12,500 187,500
------------
4,451,389
------------
COMPUTERS (HARDWARE)--0.9%
Digital Lightwave, Inc.(b).............. 2,600 261,300
Emulex Corp.(b)......................... 2,300 151,081
MRV Communications, Inc.(b)............. 7,800 524,550
Micron Electronics, Inc................. 49,300 616,250
------------
1,553,181
------------
COMPUTERS (PERIPHERALS)--0.9%
Advanced Digital Information Corp.(b)... 12,700 202,406
Cybex Computer Products Corp.(b)........ 8,100 348,300
Iomega Corp.(b)......................... 128,100 512,400
MICROS Systems, Inc.(b)................. 5,100 94,669
Maxtor Corp.(b)......................... 24,200 255,612
Quantum Corp.-Hard Disk Drive(b)........ 18,500 204,656
------------
1,618,043
------------
COMPUTERS (SOFTWARE & SERVICES)--6.8%
AGENCY.COM, Inc.(b)..................... 13,900 247,594
ARTISTdirect, Inc.(b)................... 100 312
Actuate Corp.(b)........................ 8,100 432,337
Advent Software, Inc.(b)................ 5,600 361,200
Avant! Corp.(b)......................... 17,800 333,472
BARRA, Inc.(b).......................... 6,500 322,156
BSQUARE Corp.(b)........................ 12,400 278,225
BroadVision, Inc.(b).................... 19,400 985,762
Dendrite International, Inc.(b)......... 17,100 569,644
eLoyalty Corp.(b)....................... 23,600 300,900
Entrust Technologies, Inc.(b)........... 4,300 355,825
FileNET Corp.(b)........................ 13,100 240,712
i2 Technologies, Inc.(b)................ 2,750 286,730
ISS Group, Inc.(b)...................... 4,600 454,178
Informix Corp.(b)....................... 15,200 113,050
JDA Software Group, Inc.(b)............. 21,800 418,287
LookSmart Ltd.(b)....................... 10,600 196,100
Manhattan Associates, Inc.(b)........... 6,800 170,000
Mentor Graphics Corp.(b)................ 30,700 610,162
Metasolv Software, Inc.(b).............. 600 26,400
Micromuse, Inc.(b)...................... 1,700 281,323
MicroStrategy, Inc.(b).................. 10,900 327,000
NVIDIA Corp.(b)......................... 3,800 241,537
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)--CONTINUED
Netegrity, Inc.(b)...................... 5,300 $ 399,156
ONYX Software Corp.(b).................. 11,500 341,406
Peregrine Systems, Inc.(b).............. 3,375 117,070
Phoenix Technologies Ltd.(b)............ 14,000 228,375
Pivotal Corp.(b)........................ 6,400 150,400
Predictive Systems, Inc.(b)............. 5,500 197,656
Progress Software Corp.(b).............. 18,500 331,844
RSA Security, Inc. (b).................. 2,000 138,500
Rare Medium Group, Inc.(b).............. 10,000 158,125
Razorfish, Inc.(b)...................... 4,600 73,887
Remedy Corp.(b)......................... 7,600 423,700
SERENA Software, Inc.(b)................ 8,700 395,034
Sybase, Inc.(b)......................... 29,300 673,900
Titan Corp. (The)(b).................... 7,000 313,250
Travelocity.com, Inc.(b)................ 13,200 216,150
WebTrends Corp.(b)...................... 6,900 266,944
------------
11,978,303
------------
CONSTRUCTION (CEMENT & AGGREGATES)--0.2%
Centex Construction Products, Inc....... 11,244 255,098
Texas Industries, Inc................... 2,900 83,737
------------
338,835
------------
CONSUMER (JEWELRY, NOVELTIES & GIFTS)--0.1%
Fossil, Inc.(b)......................... 11,750 228,391
CONSUMER FINANCE--0.5%
AmeriCredit Corp.(b).................... 31,200 530,400
Metris Cos., Inc........................ 12,000 301,500
------------
831,900
------------
CONTAINERS & PACKAGING (PAPER)--0.1%
Mail-Well, Inc.(b)...................... 27,800 239,775
DISTRIBUTORS (FOOD & HEALTH)--1.6%
AmeriSource Health Corp. Class A(b)..... 21,100 654,100
Bindley Western Industries, Inc......... 19,900 526,106
Owens & Minor, Inc...................... 57,300 984,844
PSS World Medical, Inc.(b).............. 23,500 157,891
Priority Healthcare Corp. Class B(b).... 6,500 483,031
------------
2,805,972
------------
ELECTRIC COMPANIES--0.5%
CMP Group, Inc.......................... 8,000 234,500
Cleco Corp.(b).......................... 2,700 90,450
Empire District Electric Co. (The)...... 8,100 178,706
IDACORP, Inc............................ 10,500 338,625
</TABLE>
4 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Appreciation Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
ELECTRIC COMPANIES--CONTINUED
WPS Resource Corp....................... 1,900 $ 57,000
------------
899,281
------------
ELECTRICAL EQUIPMENT--2.3%
Amphenol Corp. Class A(b)............... 4,600 304,462
C&D Technologies, Inc.(c)............... 12,400 700,600
C-COR.net Corp.(b)...................... 7,500 202,500
Electro Scientific Industries,
Inc.(b)................................. 9,600 422,700
Excel Technology, Inc.(b)............... 13,600 684,250
KEMET Corp.(b).......................... 12,200 305,762
Plexus Corp.(b)......................... 2,600 293,800
Power-One, Inc.(b)...................... 3,150 358,903
Sensormatic Electronics Corp.(b)........ 28,600 452,237
Watsco, Inc............................. 5,900 73,750
Zomax, Inc.(b).......................... 18,100 237,562
------------
4,036,526
------------
ELECTRONICS (COMPONENT DISTRIBUTORS)--0.5%
Kent Electronics Corp.(b)............... 17,300 515,756
Pioneer-Standard Electronics, Inc....... 21,900 323,025
------------
838,781
------------
ELECTRONICS (DEFENSE)--0.1%
Mercury Computer Systems, Inc.(b)....... 7,900 255,269
ELECTRONICS (INSTRUMENTATION)--1.8%
Coherent, Inc.(b)....................... 5,500 461,312
Credence Systems Corp.(b)............... 2,600 143,487
Cytyc Corp.(b).......................... 8,600 459,025
LTX Corp.(b)............................ 10,300 359,856
Methode Electronics, Inc. Class A....... 5,100 196,987
PerkinElmer, Inc........................ 1,900 125,637
Robotic Vision Systems, Inc. (b)........ 12,400 223,200
Sequenom, Inc.(b)....................... 600 27,225
Thermo Instrument Systems, Inc. (b)..... 8,200 153,750
Trimble Navigation Ltd.(b).............. 7,900 385,619
Varian, Inc.(b)......................... 14,300 659,587
Zygo Corp.(b)........................... 100 9,081
------------
3,204,766
------------
ELECTRONICS (SEMICONDUCTORS)--2.8%
ANADIGICS, Inc.(b)...................... 6,400 218,000
Actel Corp.(b).......................... 13,200 602,250
Amkor Technology, Inc.(b)............... 6,300 222,469
Burr-Brown Corp.(b)..................... 2,800 242,725
Cirrus Logic, Inc.(b)................... 13,800 220,800
Cree, Inc.(b)........................... 2,800 373,800
Cypress Semiconductor Corp.(b).......... 4,000 169,000
Dallas Semiconductor Corp............... 4,300 175,225
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
ELECTRONICS (SEMICONDUCTORS)--CONTINUED
ESS Technology, Inc.(b)................. 17,200 $ 249,400
Integrated Silicon Solution, Inc.(b).... 9,100 345,800
International Rectifier Corp.(b)........ 10,500 588,000
Kopin Corp.(b).......................... 3,400 235,450
Micrel, Inc.(b)......................... 3,400 147,687
Semtech Corp.(b)........................ 6,000 458,906
Silicon Laboratories, Inc.(b)........... 900 47,812
TranSwitch Corp.(b)..................... 6,050 466,984
TriQuint Semiconductor, Inc.(b)......... 2,300 220,081
------------
4,984,389
------------
ENGINEERING & CONSTRUCTION--0.3%
Dycom Industries, Inc.(b)............... 6,500 299,000
Quanta Services, Inc.(b)................ 3,200 176,000
SBA Communications Corp.(b)............. 1,900 98,681
------------
573,681
------------
EQUIPMENT (SEMICONDUCTORS)--1.6%
Asyst Technologies, Inc.(b)............. 7,000 239,750
Cymer, Inc.(b).......................... 9,000 429,750
Helix Technology Corp................... 4,900 191,100
Lam Research Corp.(b)................... 15,200 570,000
PRI Automation, Inc.(b)................. 4,300 281,180
Silicon Valley Group, Inc.(b)........... 23,300 602,887
Varian Semiconductor Equipment
Associates, Inc.(b)..................... 8,500 533,906
------------
2,848,573
------------
FINANCIAL (DIVERSIFIED)--0.5%
Doral Financial Corp.................... 42,300 483,806
IndyMac Mortgage Holdings, Inc.......... 12,600 170,887
Koger Equity............................ 5,400 91,125
Mills Corp.............................. 8,800 165,550
------------
911,368
------------
FOODS--1.1%
Del Monte Foods Co.(b).................. 10,500 71,531
Dreyer's Grand Ice Cream, Inc........... 16,800 352,800
Hain Celestial Group, Inc............... 10,200 374,213
International Home Foods, Inc.(b)....... 15,700 328,719
McCormick & Co., Inc.................... 24,300 789,750
------------
1,917,013
------------
FOOTWEAR--0.4%
Justin Industries, Inc.................. 12,600 275,625
Stride Rite Corp. (The)................. 34,900 213,763
Wolverine World Wide, Inc............... 21,000 207,375
------------
696,763
------------
</TABLE>
See Notes to Financial Statements 5
<PAGE>
Phoenix-Zweig Appreciation Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--1.3%
Argosy Gaming Co.(b).................... 19,300 $ 277,438
Aztar Corp.(b).......................... 61,900 959,450
Boyd Gaming Corp.(b).................... 29,800 165,763
Isle of Capri Casinos, Inc.(b).......... 16,800 227,850
Mandalay Resort Group(b)................ 9,900 198,000
Pinnacle Entertainment, Inc.(b)......... 8,400 163,275
Station Casinos, Inc.(b)................ 12,300 307,500
------------
2,299,276
------------
GOLD & PRECIOUS METALS MINING--0.1%
Stillwater Mining Co.(b)................ 6,400 177,600
HEALTH CARE (DIVERSIFIED)--0.2%
IVAX Corp.(b)........................... 6,500 269,750
Martek Biosciences Corp.(b)............. 3,500 65,625
Neose Technologies, Inc.(b)............. 1,600 67,300
------------
402,675
------------
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.7%
Accredo Health, Inc.(b)................. 11,500 397,469
Amylin Pharmaceuticals, Inc.(b)......... 2,800 42,525
Bone Care International, Inc.(b)........ 1,700 40,056
Celgene Corp.(b)........................ 5,700 335,588
ImmunoGen, Inc.(b)...................... 1,100 13,269
IntraBiotics Pharmaceuticals, Inc.(b)... 300 8,006
Kos Pharmaceuticals, Inc.(b)............ 2,100 33,731
Matrix Pharmaceutical, Inc.(b).......... 600 7,838
SICOR, Inc.(b).......................... 28,700 229,600
SciClone Pharmaceuticals, Inc.(b)....... 3,800 49,163
United Therapeutics Corp.(b)............ 300 32,513
------------
1,189,758
------------
HEALTH CARE (GENERIC AND OTHER)--0.6%
Dura Pharmaceuticals, Inc.(b)........... 16,700 240,063
Jones Pharma, Inc....................... 5,500 219,656
Noven Pharmaceuticals, Inc.(b).......... 18,600 559,163
------------
1,018,882
------------
HEALTH CARE (HOSPITAL MANAGEMENT)--0.3%
Quorum Health Group, Inc.(b)............ 31,000 319,688
RehabCare Group, Inc.(b)................ 4,600 125,350
Triad Hospitals, Inc.(b)................ 6,600 159,638
------------
604,676
------------
HEALTH CARE (MANAGED CARE)--1.0%
Express Scripts, Inc. Class A(b)........ 4,400 273,350
Mid Atlantic Medical Services,
Inc.(b)................................. 58,500 789,750
Oxford Health Plans, Inc.(b)............ 12,500 297,656
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
HEALTH CARE (MANAGED CARE)--CONTINUED
US Oncology, Inc.(b).................... 65,100 $ 325,500
------------
1,686,256
------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.9%
ABIOMED, Inc.(b)........................ 3,600 110,700
ADAC Laboratories(b).................... 5,900 141,600
Mentor Corp.(b)......................... 10,300 280,031
Novoste Corp.(b)........................ 4,400 268,400
Oakley, Inc.(b)......................... 64,400 732,550
Respironics, Inc.(b).................... 400 7,200
STARR Surgical Co.(b)................... 2,600 29,088
Thermo Cardiosystems, Inc. (b).......... 1,900 19,000
------------
1,588,569
------------
HEALTH CARE (SPECIALIZED SERVICES)--1.2%
Advance Paradigm, Inc.(b)............... 8,900 182,450
Albany Molecular Research, Inc.(b)...... 4,000 217,750
Covance, Inc.(b)........................ 16,000 141,000
FuelCell Energy, Inc.(b)................ 1,200 82,875
Hooper Holmes, Inc...................... 27,100 216,800
Laboratory Corporation of America
Holdings(b)............................. 6,900 532,163
Orthodontic Centers of America, Inc.
(b)..................................... 20,100 454,763
SonoSite, Inc.(b)....................... 1,000 28,813
Total Renal Care Holdings, Inc.(b)...... 31,000 186,000
------------
2,042,614
------------
HOMEBUILDING--0.9%
Horton (D.R.), Inc...................... 18,500 250,906
LNR Property Corp....................... 12,600 245,700
Lennar Corp............................. 23,000 465,750
Standard Pacific Corp................... 23,600 236,000
Toll Brothers, Inc.(b).................. 9,000 184,500
Trendwest Resorts, Inc.(b).............. 10,000 161,250
------------
1,544,106
------------
HOUSEHOLD FURNISHINGS & APPLIANCES--0.1%
La-Z-Boy, Inc........................... 10,900 152,600
HOUSEHOLD PRODUCTS (NON-DURABLE)--0.2%
Church & Dwight Co., Inc................ 14,400 259,200
INSURANCE (LIFE/HEALTH)--0.1%
Nationwide Financial Services, Inc.
Class A................................. 5,700 187,388
INSURANCE (MULTI-LINE)--0.2%
StanCorp Financial Group, Inc........... 8,800 282,700
INSURANCE (PROPERTY-CASUALTY)--0.3%
Commerce Group, Inc. (The).............. 4,500 132,750
First American Corp. (The).............. 10,900 156,006
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Appreciation Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
INSURANCE (PROPERTY-CASUALTY)--CONTINUED
Old Republic International Corp......... 19,000 $ 313,500
------------
602,256
------------
INVESTMENT BANKING/BROKERAGE--0.8%
James (Raymond) Financial, Inc.......... 19,800 445,500
Morgan Keegan, Inc...................... 23,700 349,575
National Discount Brokers Group,
Inc.(b)................................. 7,600 242,250
Waddell & Reed Financial, Inc.
Class A................................. 11,800 387,188
Wit Soundview Group, Inc.(b)............ 1,400 15,028
------------
1,439,541
------------
INVESTMENT MANAGEMENT--0.6%
Affiliated Managers Group, Inc.(b)...... 6,900 313,950
American Capital Strategies Ltd......... 300 7,163
Eaton Vance Corp........................ 4,700 217,375
Federated Investors, Inc................ 13,600 476,850
------------
1,015,338
------------
IRON & STEEL--0.5%
Commercial Metals Co.................... 10,000 275,000
Worthington Industries, Inc............. 56,600 594,300
------------
869,300
------------
LEISURE TIME (PRODUCTS)--0.8%
Bally Total Fitness Holding Corp.(b).... 1,200 30,450
Brunswick Corp.......................... 14,100 233,531
Callaway Golf Co........................ 23,400 381,713
Handleman Co.(b)........................ 15,300 191,250
Monaco Coach Corp.(b)................... 11,725 159,753
Score Board, Inc. (The)(b).............. 786 0
Thor Industries, Inc.................... 5,400 113,400
Winnebago Industries, Inc............... 18,900 246,881
------------
1,356,978
------------
LODGING-HOTELS--0.3%
Extended Stay America, Inc.(b).......... 53,700 496,725
MACHINERY (DIVERSIFIED)--0.4%
Manitowoc Co., Inc. (The)............... 12,525 335,044
Timken Co. (The)........................ 24,000 447,000
------------
782,044
------------
MANUFACTURING (DIVERSIFIED)--0.6%
AMCOL International Corp................ 12,000 30,000
Graco, Inc.............................. 2,900 98,600
Spartech Corp........................... 13,600 367,200
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
MANUFACTURING (DIVERSIFIED)--CONTINUED
Stewart & Stevenson Services, Inc....... 41,000 $ 617,563
------------
1,113,363
------------
MANUFACTURING (SPECIALIZED)--1.4%
Cognex Corp.(b)......................... 5,500 284,625
Donaldson Co., Inc...................... 26,900 531,275
Fisher Scientific International,
Inc.(b)................................. 3,900 95,550
IKON Office Solutions, Inc.............. 27,400 106,175
Insituform Technologies, Inc.(b)........ 10,600 287,525
Paxar Corp.(b).......................... 22,800 272,175
Reliance Steel & Aluminum Co............ 20,500 392,063
United Stationers, Inc.(b).............. 14,900 482,388
------------
2,451,776
------------
METAL FABRICATORS--0.2%
Mueller Industries, Inc.(b)............. 12,100 338,800
METALS MINING--0.3%
CONSOL Energy, Inc...................... 22,900 349,225
Freeport-McMoRan Copper & Gold, Inc.
Class B(b).............................. 20,600 190,550
------------
539,775
------------
NATURAL GAS--0.2%
AGL Resources, Inc...................... 2,600 41,438
Western Gas Resources, Inc.............. 12,000 252,000
------------
293,438
------------
OIL & GAS (DRILLING & EQUIPMENT)--0.6%
Atwood Oceanics, Inc.(b)................ 6,500 289,250
Grey Wolf, Inc.(b)...................... 40,900 204,500
Helmerich & Payne, Inc.................. 10,600 376,300
Patterson Energy, Inc.(b)............... 6,600 188,100
------------
1,058,150
------------
OIL & GAS (EXPLORATION & PRODUCTION)--2.0%
Chesapeake Energy Corp.(b).............. 46,000 356,500
Cross Timbers Oil Co.................... 18,000 398,250
Mitchell Energy & Development Corp.
Class A................................. 6,800 218,450
Ocean Energy, Inc.(b)................... 25,100 356,106
Pioneer Natural Resources Co.(b)........ 4,300 54,825
Pogo Producing Co....................... 15,800 349,575
Ranger Oil Ltd.(b)...................... 152,100 836,550
Santa Fe Snyder Corp.(b)................ 49,600 564,200
Vintage Petroleum, Inc.................. 18,400 415,150
------------
3,549,606
------------
OIL & GAS (REFINING & MARKETING)--0.8%
Ultramar Diamond Shamrock Corp.......... 34,900 865,956
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Phoenix-Zweig Appreciation Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
OIL & GAS (REFINING & MARKETING)--CONTINUED
Valero Energy Corp...................... 18,000 $ 571,500
------------
1,437,456
------------
OIL (INTERNATIONAL INTEGRATED)--0.1%
Tesoro Petroleum Corp.(b)............... 9,200 93,150
PAPER & FOREST PRODUCTS--0.3%
Buckeye Technologies, Inc.(b)........... 10,100 221,569
Longview Fibre Co....................... 24,000 265,500
------------
487,069
------------
PERSONAL CARE--0.2%
NBTY, Inc.(b)........................... 34,900 222,488
Perrigo Co.(b).......................... 32,500 205,156
------------
427,644
------------
PHOTOGRAPHY/IMAGING--0.5%
Concord Camera Corp.(b)................. 7,200 150,300
InFocus Corp.(b)........................ 13,300 428,094
Pinnacle Systems, Inc.(b)............... 9,600 215,850
------------
794,244
------------
REITS--3.4%
Bedford Property Investors, Inc......... 14,500 269,156
Boston Properties, Inc.................. 12,000 463,500
Brandywine Realty Trust................. 4,300 82,238
CBL & Associates Properties, Inc........ 9,400 234,413
Capital Automotive REIT................. 23,200 327,700
Crescent Real Estate Equities Co........ 40,400 828,200
Essex Property Trust, Inc............... 2,500 105,000
Glimcher Realty Trust................... 36,700 527,563
Home Properties of New York, Inc........ 18,000 540,000
Pacific Gulf Properties, Inc............ 7,400 185,463
Reckson Associates Realty Corp.......... 33,800 802,750
Taubman Centers, Inc.................... 5,500 60,500
United Dominion Realty Trust, Inc....... 134,300 1,477,300
------------
5,903,783
------------
RESTAURANTS--2.1%
Brinker International, Inc.(b).......... 17,500 511,875
Buffets, Inc.(b)........................ 39,600 502,425
CBRL Group, Inc......................... 57,900 850,406
Cheesecake Factory, Inc. (The)(b)....... 10,650 292,875
Jack in the Box, Inc.(b)................ 19,500 482,625
Papa John's International, Inc.(b)...... 10,600 259,700
Ruby Tuesday, Inc....................... 63,000 791,438
------------
3,691,344
------------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
RETAIL (DISCOUNTERS)--0.4%
Dress Barn, Inc. (The)(b)............... 18,100 $ 400,463
Stein Mart, Inc.(b)..................... 23,100 236,775
Tuesday Morning Corp.(b)................ 6,700 70,350
------------
707,588
------------
RETAIL (DRUG STORES)--0.2%
Caremark Rx, Inc.(b).................... 44,200 301,113
RETAIL (FOOD CHAINS)--0.1%
Delhaize America, Inc................... 13,000 229,938
RETAIL (HOME SHOPPING)--0.5%
Insight Enterprises, Inc.(b)............ 10,200 604,988
PC Connection, Inc.(b).................. 4,300 245,100
PolyMedica Corp. (b).................... 300 12,975
------------
863,063
------------
RETAIL (SPECIALTY)--1.6%
Barnes & Noble, Inc.(b)................. 11,000 244,750
Casey's General Stores, Inc............. 33,700 349,638
Michaels Stores, Inc.(b)................ 8,800 403,150
O'Reilly Automotive, Inc.(b)............ 26,000 360,750
PETSMART, Inc. (b)...................... 57,900 195,413
Pier 1 Imports, Inc..................... 53,900 525,525
Venator Group, Inc.(b).................. 64,900 665,225
Zale Corp.(b)........................... 3,800 138,700
------------
2,883,151
------------
RETAIL (SPECIALTY-APPAREL)--0.6%
AnnTaylor Stores Corp.(b)............... 7,800 258,375
Burlington Coat Factory Warehouse
Corp.................................... 6,200 67,038
Charming Shoppes, Inc.(b)............... 85,200 433,988
Chico's FAS, Inc.(b).................... 3,200 64,000
Men's Wearhouse, Inc. (The)(b).......... 11,200 249,900
------------
1,073,301
------------
SAVINGS & LOAN COMPANIES--1.1%
Capitol Federal Financial............... 119,200 1,318,650
Downey Financial Corp................... 14,300 414,700
Sovereign Bancorp, Inc.................. 37,900 266,484
------------
1,999,834
------------
SERVICES (COMMERCIAL & CONSUMER)--2.5%
AMERCO(b)............................... 15,300 306,000
APAC Customer Services, Inc.(b)......... 17,000 188,063
Cerner Corp. (b)........................ 14,000 381,500
Copart, Inc.(b)......................... 17,100 273,600
Digitas, Inc.(b)........................ 11,500 187,594
Dollar Thrifty Automotive Group,
Inc.(b)................................. 9,000 165,938
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Appreciation Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
SERVICES (COMMERCIAL & CONSUMER)--CONTINUED
ITT Educational Services, Inc.(b)....... 16,600 $ 291,538
Insurance Auto Auctions, Inc.(b)........ 1,200 25,350
Management Network Group, Inc.
(The)(b)................................ 8,000 280,000
NCO Group, Inc.(b)...................... 9,400 217,375
Pittston Brink's Group.................. 11,300 154,669
Register.com, Inc.(b)................... 600 18,338
Rent-A-Center, Inc.(b).................. 9,000 202,500
SITEL Corp.(b).......................... 158,300 791,500
Stewart Enterprises, Inc. Class A....... 159,700 563,941
Superior Energy Services, Inc.(b)....... 3,800 39,425
TeleTech Holdings, Inc.(b).............. 6,700 208,119
West TeleServices Corp.(b).............. 6,200 156,938
------------
4,452,388
------------
SERVICES (COMPUTER SYSTEMS)--0.4%
eMachines, Inc.(b)...................... 14,400 38,700
Ingram Micro, Inc.(b)................... 20,200 352,238
Investment Technology Group, Inc.(b).... 4,900 208,556
Sykes Enterprises, Inc. (b)............. 9,000 115,875
------------
715,369
------------
SERVICES (EMPLOYMENT)--0.3%
Interim Services, Inc.(b)............... 25,800 457,950
SERVICES (FACILITIES & ENVIRONMENTAL)--0.1%
Tetra Tech, Inc.(b)..................... 9,000 205,875
SHIPPING--0.1%
Alexander & Baldwin, Inc................ 9,900 218,419
SPECIALTY PRINTING--0.5%
Topps Co., Inc. (The)(b)................ 77,400 890,100
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.7%
Globalstar Telecommunications Ltd.(b)... 12,900 116,100
Keane, Inc.(b).......................... 30,600 661,725
Powerwave Technologies, Inc.(b)......... 5,100 224,400
VoiceStream Wireless Corp.(b)........... 2,311 268,762
------------
1,270,987
------------
TELECOMMUNICATIONS (LONG DISTANCE)--0.2%
Intermedia Communications, Inc.(b)...... 8,800 261,800
Primus Telecommunications Group,
Inc.(b)................................. 6,600 164,175
------------
425,975
------------
TEXTILES (APPAREL)--0.1%
Guess?, Inc.(b)......................... 3,300 46,200
OshKosh B' Gosh, Inc. Class A........... 7,900 129,363
------------
175,563
------------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
TEXTILES (SPECIALTY)--0.1%
Polymer Group, Inc...................... 9,200 $ 85,100
TRUCKERS--0.5%
American Freightways Corp.(b)........... 16,100 233,450
Roadway Express, Inc.................... 6,900 161,719
Rollins Truck Leasing Corp.............. 17,400 120,713
Yellow Corp.(b)......................... 20,000 295,000
------------
810,882
------------
- --------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $105,453,046) 113,757,797
- --------------------------------------------------------------------
FOREIGN COMMON STOCKS--1.4%
BANKS (MONEY CENTER)--0.1%
Banco de Galicia y Buenos Aires SA de
C.V. ADR (Argentina).................... 12,200 180,712
CHEMICALS (SPECIALTY)--0.1%
NOVA Chemicals Corp. (Canada)........... 8,100 174,150
CONSTRUCTION (CEMENT & AGGREGATES)--0.1%
Boral Ltd. ADR (Australia)(b)........... 47,900 241,585
ELECTRIC COMPANIES--0.1%
Independent Energy Holdings PLC ADR
(United Kingdom)(b)..................... 15,000 124,688
ELECTRONICS (INSTRUMENTATION)--0.1%
Orbotech Ltd. (Israel)(b)............... 2,350 218,256
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.4%
Shire Pharmaceuticals Group PLC ADR
(United Kingdom)(b)..................... 12,841 666,127
INSURANCE (LIFE/HEALTH)--0.0%
Annuity and Life Re (Holdings) Ltd.
(Bermuda)............................... 2,700 66,150
IRON & STEEL--0.1%
Tubos de Acero de Mexico SA ADR
(Mexico)................................ 16,700 231,713
PAPER & FOREST PRODUCTS--0.1%
Maderas y Sinteticos SA ADR (Chile)..... 11,800 139,388
RETAIL (DISCOUNTERS)--0.1%
Grupo Elektra, SA de C.V. GDR
(Mexico)(b)............................. 12,200 123,525
SPECIALTY PRINTING--0.1%
Quebecor World (Canada)................. 6,001 145,524
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Phoenix-Zweig Appreciation Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
TELECOMMUNICATIONS (LONG DISTANCE)--0.1%
PT Indosat (Persero) Tbk ADR
(Indonesia)............................. 8,000 $ 91,000
- --------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $2,467,848) 2,402,818
- --------------------------------------------------------------------
RIGHTS--0.0%
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.0%
Elan Corp. PLC Contingent Value Rights
(Ireland)(b)............................ 14,300 7,150
- --------------------------------------------------------------------
TOTAL RIGHTS
(IDENTIFIED COST $0) 7,150
- --------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--66.1%
(IDENTIFIED COST $107,920,894) 116,167,765
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
-------- ------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--33.6%
U.S. GOVERNMENT SECURITIES--0.3%
U.S. Treasury Bill 5.51%, 8/17/00(c).... $ 500 $ 496,403
FEDERAL AGENCY SECURITIES--17.0%
Freddie Mac Discount Note 6.41%,
7/18/00................................. 10,000 9,969,731
Freddie Mac Discount Note 6.415%,
7/18/00................................. 10,000 9,969,707
FHLB Discount Corp. 6.42%, 7/21/00...... 10,000 9,964,333
------------
29,903,771
------------
REPURCHASE AGREEMENT--16.3%
Morgan Stanley & Co., Inc. repurchase
agreement, 6.72%, dated 6/30/00 due
7/3/00, repurchase price $16,681,336,
collateralized by Fannie Mae Bonds 6% to
7.50%, 2/1/14 to 5/1/15, market value
$17,089,549............................. 16,672 16,672,000
Prudential Securities repurchase
agreement, 6.80%, dated 6/30/00 due
7/3/00, repurchase price $12,006,800,
collateralized by FHLB Discount Corp.
7.58%, 8/25/09, market value
$12,241,431............................. 12,000 12,000,000
------------
28,672,000
------------
- --------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $59,072,174) 59,072,174
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--99.7%
(IDENTIFIED COST $166,993,068) 175,239,939(a)
Cash and receivables, less liabilities--0.3% 537,666
------------
NET ASSETS--100.0% $175,777,605
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $16,256,882 and gross
depreciation of $8,856,354 for federal income tax purposes. At June 30,
2000, the aggregate cost of securities for federal income tax purposes was
$167,839,411.
(b) Non-income producing.
(c) All or a portion segregated as collateral.
10 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Appreciation Fund
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value,
exclusive of repurchase agreements
(Identified cost $138,321,068) $ 146,567,939
Repurchase agreements, at value
(Identified cost $28,672,000) 28,672,000
Cash 172,485
Receivables
Investment securities sold 11,033,098
Dividends and interest 77,367
Fund shares sold 2,056
Prepaid expenses 3,049
--------------
Total assets 186,527,994
--------------
LIABILITIES
Payables
Investment securities purchased 9,704,043
Fund shares repurchased 593,710
Investment advisory fee 145,240
Transfer agent fee 101,066
Distribution fee 88,679
Financial agent fee 9,773
Trustees' fee 2,021
Accrued expenses 105,857
--------------
Total liabilities 10,750,389
--------------
NET ASSETS $ 175,777,605
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 141,276,278
Undistributed net investment income 269,563
Accumulated net realized gain 25,984,893
Net unrealized appreciation 8,246,871
--------------
NET ASSETS $ 175,777,605
==============
CLASS A
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $95,722,761) 7,842,691
Net asset value per share $12.21
Offering price per share $12.21/(1-5.75%) $12.95
CLASS B
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $16,617,201) 1,388,234
Net asset value and offering price per share $11.97
CLASS C
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $61,662,509) 5,156,337
Net asset value and offering price per share $11.96
CLASS I
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $1,775,134) 142,682
Net asset value and offering price per share $12.44
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 2,645,773
Dividends 395,760
Foreign taxes withheld (6,268)
--------------
Total investment income 3,035,265
--------------
EXPENSES
Investment advisory fee 989,914
Distribution fee, Class A 158,582
Distribution fee, Class B 88,778
Distribution fee, Class C 363,572
Financial agent fee 60,430
Transfer agent 222,075
Custodian 59,630
Printing 58,040
Professional 23,598
Registration 15,812
Trustees 5,837
Miscellaneous 10,482
--------------
Total expenses 2,056,750
--------------
NET INVESTMENT INCOME 978,515
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 15,647,102
Net realized gain on futures contracts 503,116
Net change in unrealized appreciation (depreciation) on
investments (14,224,288)
--------------
NET GAIN ON INVESTMENTS 1,925,930
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,904,445
==============
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Phoenix-Zweig Appreciation Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/00 Year Ended
(Unaudited) 12/31/99
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 978,515 $ 1,318,325
Net realized gain (loss) 16,150,218 54,900,281
Net change in unrealized appreciation
(depreciation) (14,224,288) (72,157,266)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 2,904,445 (15,938,660)
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A -- (1,252,803)
Net investment income, Class B -- (38,607)
Net investment income, Class C -- --
Net investment income, Class I -- (25,815)
Net realized gains, Class A -- (30,871,238)
Net realized gains, Class B -- (4,964,628)
Net realized gains, Class C -- (22,920,388)
Net realized gains, Class I -- (435,073)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS -- (60,508,552)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(2,010,160 shares and 14,810,527
shares, respectively) 24,054,765 227,104,026
Net asset value of shares issued from
reinvestment of distributions
(0 shares and 2,400,385 shares,
respectively) -- 28,239,979
Cost of shares repurchased (4,712,858
shares and 21,524,481 shares,
respectively) (56,559,691) (330,355,225)
------------ ------------
Total (32,504,926) (75,011,220)
------------ ------------
CLASS B
Proceeds from sales of shares (148,420
shares and 129,606 shares,
respectively) 1,770,739 1,900,795
Net asset value of shares issued from
reinvestment of distributions
(0 shares and 402,657 shares,
respectively) -- 4,626,397
Cost of shares repurchased (414,313
shares and 774,237 shares,
respectively) (4,903,091) (11,349,693)
------------ ------------
Total (3,132,352) (4,822,501)
------------ ------------
CLASS C
Proceeds from sales of shares (39,102
shares and 300,852 shares,
respectively) 466,140 4,006,824
Net asset value of shares issued from
reinvestment of distributions
(0 shares and 1,806,014 shares,
respectively) -- 20,696,922
Cost of shares repurchased (2,444,928
shares and 7,166,283 shares,
respectively) (28,846,175) (106,799,870)
------------ ------------
Total (28,380,035) (82,096,124)
------------ ------------
CLASS I
Proceeds from sales of shares (644
shares and 19,302 shares,
respectively) 7,865 292,647
Net asset value of shares issued from
reinvestment of distributions
(0 shares and 38,375 shares,
respectively) -- 460,876
Cost of shares repurchased (13,901
shares and 69,729 shares,
respectively) (169,072) (1,143,332)
------------ ------------
Total (161,207) (389,809)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (64,178,520) (162,319,654)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (61,274,075) (238,766,866)
NET ASSETS
Beginning of period 237,051,680 475,818,546
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) AND
DISTRIBUTIONS IN EXCESS OF NET
INVESTMENT INCOME OF
$269,563 AND ($708,952),
RESPECTIVELY] $175,777,605 $237,051,680
============ ============
</TABLE>
12 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
--------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/00 ------------------------------------------
(UNAUDITED) 1999 1998 1997
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 11.99 $ 16.21 $ 18.27 $ 15.90
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.08(4) 0.11(4) 0.07 0.10
Net realized and unrealized
gain (loss) 0.14 (0.51) (0.32) 3.67
------- -------- -------- --------
TOTAL FROM INVESTMENT
OPERATIONS 0.22 (0.40) (0.25) 3.77
------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment
income -- (0.12) (0.07) (0.09)
Dividends from net realized
gains -- (3.70) (1.74) (1.31)
------- -------- -------- --------
TOTAL DISTRIBUTIONS -- (3.82) (1.81) (1.40)
------- -------- -------- --------
Change in net asset value 0.22 (4.22) (2.06) 2.37
------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 12.21 $ 11.99 $ 16.21 $ 18.27
======= ======== ======== ========
Total return(1) 1.75%(3) (1.80)% (0.97)% 23.83%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $95,723 $126,461 $240,900 $293,809
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.76%(2) 1.58% 1.52% 1.52%
Net investment income 1.30%(2) 0.74% 0.34% 0.61%
Portfolio turnover 121%(3) 92% 117% 77%
<CAPTION>
CLASS A
-------------------------
YEAR ENDED DECEMBER 31
-------------------------
1996 1995
<S> <C> <C>
Net asset value, beginning of
period $ 15.91 $ 13.54
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.17 0.16
Net realized and unrealized
gain (loss) 2.25 3.05
-------- --------
TOTAL FROM INVESTMENT
OPERATIONS 2.42 3.21
-------- --------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.17) (0.33)
Dividends from net realized
gains (2.26) (0.51)
-------- --------
TOTAL DISTRIBUTIONS (2.43) (0.84)
-------- --------
Change in net asset value (0.01) 2.37
-------- --------
NET ASSET VALUE, END OF PERIOD $ 15.90 $ 15.91
======== ========
Total return(1) 15.39% 24.00%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $275,935 $272,590
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.62% 1.63%
Net investment income 1.03% 1.10%
Portfolio turnover 88% 68%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED DECEMBER 31 INCEPTION
6/30/00 --------------------------------------- 4/8/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 11.80 $ 16.02 $ 18.13 $ 15.82 $16.34
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.04(4) 0.01(4) (0.06) (0.02) 0.03
Net realized and unrealized
gain (loss) 0.13 (0.51) (0.31) 3.64 1.74
------- ------- ------- ------- ------
TOTAL FROM INVESTMENT
OPERATIONS 0.17 (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 0.17 (4.22) (2.11) 2.31 (0.52)
------- ------- ------- ------- ------
NET ASSET VALUE, END OF PERIOD $ 11.97 $ 11.80 $ 16.02 $ 18.13 $15.82
======= ======= ======= ======= ======
Total return(1) 1.44%(3) (2.45)% (1.66)% 22.97% 11.01%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $16,617 $19,523 $30,370 $22,122 $8,350
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.46%(2) 2.27% 2.22% 2.22% 2.32%(2)
Net investment income 0.60%(2) 0.08% (0.36)% (0.09)% 0.33%(2)
Portfolio turnover 121%(3) 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 13
<PAGE>
Phoenix-Zweig Appreciation Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
-------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/00 -----------------------------------------
(UNAUDITED) 1999 1998 1997
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 11.79 $ 15.99 $ 18.10 $ 15.79
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.04(4) --(4) (0.07) (0.02)
Net realized and unrealized
gain (loss) 0.13 (0.50) (0.30) 3.64
------- ------- -------- --------
TOTAL FROM INVESTMENT
OPERATIONS 0.17 (0.50) (0.37) 3.62
------- ------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment
income -- -- -- --
Dividends from net realized
gains -- (3.70) (1.74) (1.31)
------- ------- -------- --------
TOTAL DISTRIBUTIONS -- (3.70) (1.74) (1.31)
------- ------- -------- --------
Change in net asset value 0.17 (4.20) (2.11) 2.31
------- ------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 11.96 $ 11.79 $ 15.99 $ 18.10
======= ======= ======== ========
Total return(1) 1.44%(3) (2.49)% (1.67)% 23.01%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $61,663 $89,165 $201,789 $248,584
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.45%(2) 2.28% 2.22% 2.22%
Net investment income 0.61%(2) 0.02% (0.36)% (0.09)%
Portfolio turnover 121%(3) 92% 117% 77%
<CAPTION>
CLASS C
-------------------------
YEAR ENDED DECEMBER 31
-------------------------
1996 1995
<S> <C> <C>
Net asset value, beginning of
period $ 15.83 $ 13.36
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.06 0.06
Net realized and unrealized
gain (loss) 2.22 3.03
-------- --------
TOTAL FROM INVESTMENT
OPERATIONS 2.28 3.09
-------- --------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.06) (0.11)
Dividends from net realized
gains (2.26) (0.51)
-------- --------
TOTAL DISTRIBUTIONS (2.32) (0.62)
-------- --------
Change in net asset value (0.04) 2.47
-------- --------
NET ASSET VALUE, END OF PERIOD $ 15.79 $ 15.83
======== ========
Total return(1) 14.54% 23.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $218,714 $195,204
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.32% 2.33%
Net investment income 0.33% 0.40%
Portfolio turnover 88% 68%
</TABLE>
<TABLE>
<CAPTION>
CLASS I
---------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED DECEMBER 31 INCEPTION
6/30/00 ------------------------------------ 11/1/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $12.21 $16.43 $18.46 $16.04 $17.28
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.10(4) 0.17(4) 0.09 0.15 0.04
Net realized and unrealized
gain (loss) 0.13 (0.52) (0.29) 3.71 1.02
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT
OPERATIONS 0.23 (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 0.23 (4.22) (2.03) 2.42 (1.24)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $12.44 $12.21 $16.43 $18.46 $16.04
====== ====== ====== ====== ======
Total return(1) 1.88%(3) (1.45)% (0.67)% 24.17% 6.30%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $1,775 $1,903 $2,760 $2,735 $2,202
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.48%(2) 1.27% 1.22% 1.22% 1.32%(2)
Net investment income 1.60%(2) 1.14% 0.64% 0.91% 1.33%(2)
Portfolio turnover 121%(3) 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.
14 See Notes to Financial Statements
<PAGE>
PHOENIX-ZWEIG FOREIGN EQUITY FUND
INVESTMENTS AT JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C> <C>
FOREIGN COMMON STOCKS--76.7%
AUSTRALIA--3.2%
AMP Ltd. (Insurance (Life/Health))......... 1,000 $ 10,098
Broken Hill Proprietary Co. Ltd.
(Manufacturing (Diversified)).............. 3,200 37,947
Cable & Wireless Optus Ltd.
(Telephone)(b)............................. 6,800 20,333
Commonwealth Bank of Australia (Banks
(Major Regional)).......................... 1,200 19,951
National Australia Bank Ltd. (Banks (Major
Regional))................................. 1,200 20,101
News Corp. Ltd. (The) (Broadcasting
(Television, Radio & Cable))............... 4,600 63,524
Telstra Corp. Ltd. (Telephone)............. 6,700 27,275
----------
199,229
----------
CANADA--1.9%
Alcan Aluminum Ltd. (Aluminum)............. 100 3,105
BCE, Inc. (Telephone)...................... 100 2,369
Barrick Gold Corp. (Gold & Precious Metals
Mining).................................... 300 5,416
Bombardier, Inc. (Aerospace/Defense)....... 700 18,992
Canadian Imperial Bank of Commerce (Banks
(Major Regional)).......................... 200 5,487
Dofasco, Inc. (Iron & Steel)............... 200 3,287
Nortel Networks Corp. (Communications
Equipment)................................. 556 38,538
Royal Bank of Canada (Banks (Major
Regional))................................. 400 20,450
Talisman Energy, Inc. (Oil & Gas
(Exploration & Production))(b)............. 300 9,931
Thomson Corp. (The) (Publishing)........... 100 3,418
Toronto-Dominion Bank (The) (Banks (Major
Regional))................................. 200 4,859
----------
115,852
----------
DENMARK--2.7%
A/S Dampskibsselskabet Svendborg Class B
(Shipping)................................. 4 59,367
Den Danske Bank Group (Banks (Major
Regional))................................. 200 24,158
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C> <C>
DENMARK--CONTINUED
Novo Nordisk A/S Class B (Health Care
(Drugs-Major Pharmaceuticals))............. 200 $ 34,181
Tele Danmark A/S (Telephone)............... 500 33,795
Unidanmark A/S Class A (Banks (Major
Regional))................................. 200 16,448
----------
167,949
----------
FINLAND--2.7%
Nokia Oyj (Communications Equipment)....... 3,000 153,710
Outokumpu Oyj (Metals Mining).............. 500 4,793
UPM-Kymmene Oyj (Paper & Forest
Products).................................. 250 6,231
----------
164,734
----------
FRANCE--5.9%
Alcatel (Communications Equipment)......... 525 34,574
Axa (Insurance (Multi-Line))............... 220 34,797
France Telecom SA (Telephone).............. 459 64,415
L'Oreal SA (Household Products
(Non-Durable))............................. 55 47,819
LVMH (Beverages (Alcoholic))............... 55 22,771
Schneider Electric SA (Electrical
Equipment)................................. 319 22,323
Simco SA Registered Shares (Financial
(Diversified))............................. 392 28,746
Total Fina Elf SA (Oil & Gas (Refining &
Marketing))................................ 476 73,280
Total Fina Elf Strip (Oil (International
Integrated))(b)............................ 72 1
Vivendi SA (Manufacturing (Diversified))... 444 39,348
----------
368,074
----------
GERMANY--6.1%
Allianz AG Vinkulierte Registered Shares
(Insurance (Multi-Line))................... 140 50,997
BASF AG (Chemicals (Diversified)).......... 675 27,467
Bayer AG (Chemicals (Diversified))......... 500 19,555
DaimlerChrysler AG (Automobiles)........... 948 49,935
Deutsche Bank AG Registered Shares (Banks
(Major Regional)).......................... 550 45,552
Deutsche Telekom AG Registered Shares
(Telephone)................................ 1,750 99,981
E.On AG (Manufacturing (Diversified))...... 400 19,709
</TABLE>
See Notes to Financial Statements 15
<PAGE>
Phoenix-Zweig Foreign Equity Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C> <C>
GERMANY--CONTINUED
Schering AG (Health Care (Drugs-Major
Pharmaceuticals)).......................... 300 $ 16,679
Siemens AG (Electronics (Component
Distributors))............................. 325 49,068
----------
378,943
----------
HONG KONG--1.9%
Cable & Wireless HKT Ltd. (Telephone)...... 7,000 15,401
Cheung Kong (Holdings) Ltd. (Financial
(Diversified))............................. 1,500 16,597
China Mobile (Hong Kong) Ltd.
(Telecommunications
(Cellular/Wireless))(b).................... 5,000 44,099
Hang Seng Bank Ltd. (Banks (Major
Regional))................................. 800 7,595
Hutchison Whampoa Ltd. (Manufacturing
(Diversified))............................. 2,200 27,659
Sung Hung Kai Properties Ltd. (Financial
(Diversified))............................. 1,000 7,184
----------
118,535
----------
ITALY--3.2%
Assicurazioni Generali (Insurance
(Life/Health))............................. 1,000 34,413
Beni Stabili SPA (Financial
(Diversified))............................. 500 269
Edison SPA (Electric Companies)............ 1,000 9,509
Eni SPA (Oil (Domestic Integrated))........ 5,000 28,997
Fiat SPA (Automobiles)..................... 300 7,816
Istituto Nazionale delle Assicurazioni SPA
(Insurance (Life/Health)).................. 1,000 2,473
Riunione Adriatica di Sicurta SPA
(Insurance (Multi-Line))................... 840 9,260
San Paolo - IMI SPA (Banks (Major
Regional))................................. 500 8,910
Telecom Italia Mobile SPA (Telephone)...... 6,000 61,541
Telecom Italia SPA (Telephone)............. 1,500 20,705
UniCredito Italiano SPA (Banks (Major
Regional))................................. 2,500 12,006
----------
195,899
----------
JAPAN--17.7%
Acom Co., Ltd. (Consumer Finance).......... 100 8,431
Bank of Tokyo-Mitsubishi Ltd. (The) (Banks
(Major Regional)).......................... 4,000 48,430
DDI Corp. (Telephone)...................... 6 57,844
Dainippon Ink & Chemicals, Inc. (Chemicals
(Specialty))............................... 1,000 4,716
East Japan Railway Co. (Railroads)......... 6 34,933
Fuji Photo Film Co., Ltd.
(Photography/Imaging)...................... 1,000 41,020
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C> <C>
JAPAN--CONTINUED
Fujikura Ltd. (Electrical Equipment)....... 3,000 $ 19,990
Fujitsu Ltd. (Computers (Hardware))........ 3,000 104,063
Hitachi Credit Corp. (Consumer Finance).... 900 24,414
Hitachi Ltd. (Electronics (Component
Distributors))............................. 5,000 72,305
Kansai Electric Power Co., Inc. (The)
(Electric Companies)....................... 1,500 26,909
Matsushita Electric Industrial Co., Ltd.
(Electronics (Component Distributors))..... 3,000 77,976
Minebea Co., Ltd. (Machinery
(Diversified))............................. 2,000 25,141
Nintendo Co., Ltd. (Leisure Time
(Products))................................ 100 17,504
Nippon Soda Co., Ltd. (Chemicals
(Specialty))............................... 3,000 11,597
Nippon Telegraph & Telephone Corp.
(Telephone)................................ 7 93,288
Nisshin Flour Milling Co., Ltd.
(Agricultural Products).................... 3,000 30,056
Nissho Iwai Corp. (Distributors (Food &
Health))(b)................................ 11,000 12,372
Promise Co., Ltd. (Consumer Finance)....... 100 7,920
Sankyo Co., Ltd. (Health Care (Drugs-Major
Pharmaceuticals)).......................... 1,000 22,637
Sanwa Bank Ltd. (The) (Banks (Major
Regional))................................. 1,000 7,996
Sharp Corp. (Household Furnishings &
Appliances)................................ 1,000 17,722
Sony Corp. (Household Furnishings &
Appliances)................................ 200 18,714
Sumitomo Bank Ltd. (The) (Banks (Major
Regional))................................. 4,000 49,149
Sumitomo Marine & Fire Insurance Co., Ltd.
(The) (Insurance (Property-Casualty))...... 2,000 11,663
Suzuki Motor Corp. (Automobiles)........... 1,000 12,930
Takefuji Corp. (Consumer Finance).......... 300 36,323
Toa Corp. (Engineering & Construction)..... 8,000 10,057
Tokyo Electric Power Co., Inc. (The)
(Electric Companies)....................... 2,200 53,752
Toyota Motor Corp. (Automobiles)........... 3,000 136,955
----------
1,096,807
----------
MALAYSIA--1.1%
Malayan Banking Berhad (Banks (Major
Regional))................................. 8,000 32,422
Malaysia International Shipping Corp.
Berhad (Shipping).......................... 9,000 14,921
Sime Darby Berhad (Distributors (Food &
Health))................................... 10,000 12,842
Telekom Malaysia Berhad (Telephone)........ 2,000 6,895
----------
67,080
----------
</TABLE>
16 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Foreign Equity Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C> <C>
MEXICO--1.3%
Grupo Modelo SA de C.V. Series C (Beverages
(Alcoholic))............................... 5,000 $ 11,201
Grupo Televisa SA CPO (Broadcasting
(Television, Radio & Cable))(b)............ 6,000 20,542
Telefonos de Mexico SA Series L
(Telecommunications (Long Distance))....... 14,000 39,682
Wal-Mart de Mexico SA de C.V. (Retail
(Specialty))(b)............................ 4,000 9,387
----------
80,812
----------
NETHERLANDS--2.8%
ABN AMRO Holding NV (Banks (Major
Regional))................................. 707 17,390
Aegon NV (Insurance (Life/Health))......... 522 18,649
Heineken NV (Beverages (Alcoholic))........ 100 6,111
ING Groep NV (Financial (Diversified))..... 390 26,469
KLM Royal Dutch Airlines (Airlines)........ 75 2,027
KPN NV (Telephone)(b)...................... 200 8,982
Koninklijke (Royal) Philips Electronics NV
(Electronics (Component Distributors))..... 508 24,056
Royal Dutch Petroleum Co. (Oil (Domestic
Integrated))............................... 767 47,864
TNT Post Group NV (Air Freight)............ 100 2,708
Unilever NV CVA (Foods).................... 254 11,699
Wolters Kluwer NV (Publishing)............. 200 5,349
----------
171,304
----------
NEW ZEALAND--2.0%
Brierley Investments Ltd. (Manufacturing
(Diversified))............................. 15,000 2,330
Carter Holt Harvey Ltd. (Paper & Forest
Products).................................. 30,000 26,127
Contact Energy Ltd. (Electric Companies)... 5,000 6,708
Fletcher Challenge Building (Engineering &
Construction).............................. 4,000 4,256
Fletcher Challenge Energy (Oil & Gas
(Exploration & Production))................ 600 1,963
Fletcher Challenge Paper (Paper & Forest
Products).................................. 6,000 6,892
Independent Newspapers Ltd. (Publishing)... 3,000 5,649
Lion Nathan Ltd. (Beverages (Alcoholic))... 6,000 13,416
Natural Gas Corporation Holdings Ltd.
(Natural Gas).............................. 5,000 3,531
Telecom Corporation of New Zealand Ltd.
(Telephone)................................ 15,000 52,607
----------
123,479
----------
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C> <C>
NORWAY--2.7%
Christiania Bank Og Kreditkasse (Banks
(Major Regional)).......................... 3,400 $ 18,338
Den Norske Bank ASA (Banks (Major
Regional))................................. 5,000 20,825
Norsk Hydro ASA (Chemicals (Specialty)).... 1,700 71,600
Orkla ASA (Foods).......................... 2,300 43,861
Storebrand ASA (Insurance (Multi-Line)).... 2,000 14,507
----------
169,131
----------
SINGAPORE--1.2%
City Developments Ltd. (Financial
(Diversified))............................. 1,000 3,875
Creative Technology Ltd. (Computers
(Peripherals))............................. 500 12,059
DBS Land Ltd. (Financial (Diversified)).... 3,000 3,887
Oversea-Chinese Banking Corp. Ltd. (Banks
(Major Regional)).......................... 2,100 14,454
SembCorp Industries Ltd. (Manufacturing
(Diversified))............................. 2,226 2,420
Shangri-La Hotel Ltd. (Lodging-Hotels)..... 3,000 4,199
Singapore Airlines Ltd. (Airlines)......... 2,000 19,780
Singapore Press Holdings Ltd. (Publishing
(Newspapers)).............................. 548 8,558
Singapore Telecommunications Ltd.
(Telephone)................................ 3,500 5,121
----------
74,353
----------
SOUTH AFRICA--1.9%
ABSA Group Ltd. (Banks (Major Regional))... 1,449 5,493
Anglo American Platinum Corp., Ltd. (Gold &
Precious Metals Mining).................... 445 12,825
AngloGold Ltd. (Gold & Precious Metals
Mining).................................... 289 11,808
De Beers (Metals Mining)................... 687 16,720
Dimension Data Holdings Ltd. (Services
(Data Processing))(b)...................... 1,400 11,584
FirstRand Ltd. (Financial (Diversified))... 10,111 10,439
Imperial Holdings Ltd. (Retail
(Specialty))(b)............................ 674 5,488
Investec Group Ltd. (Banks (Major
Regional))................................. 169 5,693
Liberty Group Ltd. (Insurance
(Life/Health))............................. 615 5,851
Nedcor Ltd. (Banks (Major Regional))....... 515 10,817
Rembrant Group Ltd. (Financial
(Diversified))............................. 1,234 11,904
Sappi Ltd. (Paper & Forest Products)....... 457 3,438
</TABLE>
See Notes to Financial Statements 17
<PAGE>
Phoenix-Zweig Foreign Equity Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C> <C>
SOUTH AFRICA--CONTINUED
Sasol Ltd. (Metals Mining)................. 1,139 $ 7,644
----------
119,704
----------
SPAIN--3.9%
Altadis SA (Tobacco)....................... 500 7,712
Autopistas, Concesionaria Espanola SA
Registered Shares (Services (Commercial &
Consumer))................................. 500 4,366
Banco Bilbao Vizcaya Argentaria SA (Banks
(Major Regional)).......................... 3,422 51,337
Banco Santander Central Hispano SA (Banks
(Major Regional)).......................... 3,301 34,965
Empresa Nacional de Electricidad SA
(Electric Companies)....................... 1,064 20,695
Iberdrola SA (Electric Companies).......... 1,700 22,000
Repsol YPF SA (Oil & Gas (Refining &
Marketing))................................ 1,254 25,063
Telefonica SA (Telephone)(b)............... 3,390 73,116
----------
239,254
----------
SWEDEN--5.5%
AGA AB Class A (Chemicals (Specialty))..... 50 804
Esselte AB Class A (Office Equipment &
Supplies).................................. 50 294
ForeningsSparbanken AB (Banks (Major
Regional))................................. 700 10,296
Hennes & Mauritz AB Class B (Retail
(Specialty-Apparel))....................... 1,300 27,273
Sandvik AB (Machinery (Diversified))....... 100 2,109
Skandia Forsakrings AB (Insurance
(Life/Health))............................. 1,200 31,879
Svenska Cellulosa AB Class B (Household
Products (Non-Durable)).................... 100 1,910
Svenska Handelsbanken AB Class A (Banks
(Major Regional)).......................... 900 13,135
Telefonaktiebolaget LM Ericsson AB Class B
(Communications Equipment)................. 12,800 254,665
----------
342,365
----------
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C> <C>
SWITZERLAND--3.0%
Adecco SA (Services (Commercial &
Consumer))................................. 10 $ 8,524
Credit Suisse Group Registered Shares
(Banks (Major Regional))................... 50 9,978
Givaudan (Manufacturing
(Specialized))(b).......................... 5 1,527
Nestle SA Registered Shares (Foods)........ 20 40,158
Novartis AG Registered Shares (Health Care
(Drugs-Major Pharmaceuticals))............. 30 47,673
Roche Holding AG (Health Care (Drugs-Major
Pharmaceuticals)).......................... 5 48,829
Swiss Re Registered Shares (Insurance
(Property-Casualty))....................... 10 20,448
UBS AG Registered Shares (Banks (Major
Regional))................................. 60 8,819
----------
185,956
----------
UNITED KINGDOM--6.0%
AstraZeneca Group PLC (Health Care
(Drugs-Major Pharmaceuticals))............. 500 23,352
BP Amoco PLC (Oil (Domestic Integrated))... 8,988 86,267
Barclays PLC (Banks (Major Regional))...... 751 18,680
British Telecommunications PLC
(Telephone)................................ 3,845 49,710
Glaxo Wellcome PLC (Health Care
(Drugs-Major Pharmaceuticals))............. 731 21,325
HSBC Holdings PLC (Financial
(Diversified))............................. 2,100 24,019
HSBC Holdings PLC (Financial
(Diversified))(d).......................... 3,000 34,253
Land Securities PLC (Financial
(Diversified))............................. 1,400 16,744
Lloyds TSB Group PLC (Financial
(Diversified))............................. 3,355 31,694
Marks & Spencer PLC (Retail (Department
Stores))................................... 2,584 9,085
Railtrack Group PLC (Railroads)............ 200 3,108
ScottishPower PLC (Electric Companies)..... 500 4,239
SmithKline Beecham PLC (Health Care
(Drugs-Major Pharmaceuticals))............. 2,187 28,639
Taylor Woodrow PLC (Engineering &
Construction).............................. 290 665
Unilever PLC (Foods)....................... 2,232 13,516
</TABLE>
18 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Foreign Equity Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C> <C>
UNITED KINGDOM--CONTINUED
Wolseley PLC (Distributors (Food &
Health))................................... 1,800 $ 9,905
----------
375,201
----------
- --------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $3,854,094) 4,754,661
- --------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--76.7%
(IDENTIFIED COST $3,854,094) 4,754,661
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PAR
VALUE
(000)
-------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--22.9%
REPURCHASE AGREEMENT--22.9%
Morgan Stanley & Co., Inc. repurchase
agreement 6.72%, dated 6/30/00 due 7/3/00,
repurchase price $1,416,793 collateralized
by Fannie Mae Bond 7%, 10/1/27, market
value $1,444,788(c)........................ $ 1,416 1,416,000
- --------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $1,416,000) 1,416,000
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--99.6%
(IDENTIFIED COST $5,270,094) 6,170,661(a)
Cash and receivables, less liabilities--0.4% 24,205
----------
NET ASSETS--100.0% $6,194,866
==========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $1,150,725 and gross
depreciation of $254,287 for federal income tax purposes. At June 30, 2000,
the aggregate cost of securities for federal income tax purposes was
$5,274,223.
(b) Non-income producing.
(c) All or a portion segregated as collateral.
(d) Security traded on Hong Kong Stock Exchange.
See Notes to Financial Statements 19
<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.......................... 0.4%
Agricultural Products...................... 0.6
Airlines................................... 0.5
Aluminum................................... 0.1
Automobiles................................ 4.4
Banks (Major Regional)..................... 11.9
Beverages (Alcoholic)...................... 1.1
Broadcasting (Television, Radio & Cable)... 1.8
Chemicals (Diversified).................... 1.0
Chemicals (Specialty)...................... 1.9
Communications Equipment................... 10.1
Computers (Hardware)....................... 2.2
Computers (Peripherals).................... 0.2
Consumer Finance........................... 1.6
Distributors (Food & Health)............... 0.7
Electric Companies......................... 3.0
Electrical Equipment....................... 0.9
Electronics (Component Distributors)....... 4.7
Engineering & Construction................. 0.3
Financial (Diversified).................... 4.5
Foods...................................... 2.3
Gold & Precious Metals Mining.............. 0.6
Health Care (Drugs-Major
Pharmaceuticals)........................... 5.1
Household Furnishings & Appliances......... 0.8
Household Products (Non-Durable)........... 1.0
Insurance (Life/Health).................... 2.2
Insurance (Multi-Line)..................... 2.3
Insurance (Property-Casualty).............. 0.7%
Iron & Steel............................... 0.1
Leisure Time (Products).................... 0.4
Lodging-Hotels............................. 0.1
Machinery (Diversified).................... 0.6
Manufacturing (Diversified)................ 2.7
Metals Mining.............................. 0.6
Natural Gas................................ 0.1
Oil & Gas (Exploration & Production)....... 0.2
Oil & Gas (Refining & Marketing)........... 2.1
Oil (Domestic Integrated).................. 3.4
Paper & Forest Products.................... 0.9
Photography/Imaging........................ 0.9
Publishing................................. 0.3
Publishing (Newspapers).................... 0.2
Railroads.................................. 0.8
Retail (Department Stores)................. 0.2
Retail (Specialty)......................... 0.3
Retail (Specialty-Apparel)................. 0.6
Services (Commercial & Consumer)........... 0.3
Services (Data Processing)................. 0.2
Shipping................................... 1.6
Telecommunications (Cellular/Wireless)..... 0.9
Telecommunications (Long Distance)......... 0.8
Telephone.................................. 14.6
Tobacco.................................... 0.2
------
100.0%
======
</TABLE>
20
<PAGE>
Phoenix-Zweig Foreign Equity Fund
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value,
exclusive of repurchase agreement
(Identified cost $3,854,094) $ 4,754,661
Repurchase agreement, at value
(Identified cost $1,416,000) 1,416,000
Foreign currency at value
(Identified cost $7,295) 7,344
Cash 3,596
Gross unrealized appreciation on forward foreign currency
contracts 8,850
Receivables
Investment securities sold 20,052
Fund shares sold 11,433
Tax reclaims 6,513
Dividends and interest 3,342
Deferred organization expense 12,850
Prepaid expenses 54
--------------
Total assets 6,244,695
--------------
LIABILITIES
Gross unrealized depreciation on forward foreign currency
contracts 840
Payables
Transfer agent fee 9,483
Investment advisory fee 5,015
Distribution fee 4,350
Trustees' fee 1,897
Financial agent fee 430
Accrued expenses 27,814
--------------
Total liabilities 49,829
--------------
NET ASSETS $ 6,194,866
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 4,697,857
Undistributed net investment loss (27,889)
Accumulated net realized gain 616,699
Net unrealized appreciation 908,199
--------------
NET ASSETS $ 6,194,866
==============
CLASS A
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $1,156,317) 82,106
Net asset value per share $14.08
Offering price per share $14.08/(1-5.75%) $14.94
CLASS B
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $1,954,956) 140,287
Net asset value and offering price per share $13.94
CLASS C
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $3,083,593) 221,997
Net asset value and offering price per share $13.89
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 59,306
Interest 53,760
Foreign taxes withheld (4,650)
--------------
Total investment income 108,416
--------------
EXPENSES
Investment advisory fee 34,298
Distribution fee, Class A 1,843
Distribution fee, Class B 9,402
Distribution fee, Class C 16,469
Financial agent fee 2,401
Transfer agent 27,309
Registration 16,747
Custodian 12,428
Professional 11,210
Printing 5,552
Amortization of deferred organization expenses 2,670
Trustees 2,079
Miscellaneous 6,975
--------------
Total expenses 149,383
--------------
NET INVESTMENT LOSS (40,967)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 502,587
Net realized loss on foreign currency transactions (42,120)
Net change in unrealized appreciation (depreciation) on
investments (547,983)
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions (378)
--------------
NET LOSS ON INVESTMENTS (87,894)
--------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (128,861)
==============
</TABLE>
See Notes to Financial Statements 21
<PAGE>
Phoenix-Zweig Foreign Equity Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/00 Year Ended
(Unaudited) 12/31/99
----------- -----------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (40,967) $ (44,563)
Net realized gain (loss) 460,467 1,012,730
Net change in unrealized appreciation
(depreciation) (548,361) 726,157
---------- -----------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (128,861) 1,694,324
---------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A -- (6,115)
Net investment income, Class B -- --
Net investment income, Class C -- --
Net investment income, Class I -- (11,409)
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)
---------- -----------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (6,614
and 45,819 shares, respectively) 91,920 604,851
Net asset value of shares issued from
reinvestment of distributions
(0 and 6,405 shares, respectively) -- 88,383
Cost of shares repurchased (24,909 and
123,078 shares, respectively) (345,619) (1,679,522)
---------- -----------
Total (253,699) (986,288)
---------- -----------
CLASS B
Proceeds from sales of shares (55,425
and 13,147 shares, respectively) 764,841 178,632
Net asset value of shares issued from
reinvestment of distributions
(0 and 6,228 shares, respectively) -- 84,942
Cost of shares repurchased (39,991 and
46,239 shares, respectively) (555,514) (615,878)
---------- -----------
Total 209,327 (352,304)
---------- -----------
CLASS C
Proceeds from sales of shares (175,156
and 634,957 shares, respectively) 2,402,595 8,419,758
Net asset value of shares issued from
reinvestment of distributions
(0 and 12,526 shares, respectively) -- 170,358
Cost of shares repurchased (216,444
and 658,731 shares, respectively) (2,986,254) (8,742,173)
---------- -----------
Total (583,659) (152,057)
---------- -----------
CLASS I
Proceeds from sales of shares (0 and
12,621 shares, respectively) -- 156,000
Net asset value of shares issued from
reinvestment of distributions
(0 and 6,783 shares, respectively) -- 93,527
Cost of shares repurchased (104,543
and 4,465 shares, respectively) (1,472,231) (60,113)
---------- -----------
Total (1,472,231) 189,414
---------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (2,100,262) (1,301,235)
---------- -----------
NET INCREASE (DECREASE) IN NET ASSETS (2,229,123) (61,647)
NET ASSETS
Beginning of period 8,423,989 8,485,636
---------- -----------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($27,889) AND $13,078, RESPECTIVELY] $6,194,866 $ 8,423,989
========== ===========
</TABLE>
22 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
-------------------------------------------------------
SIX MONTHS YEAR ENDED FROM
ENDED DECEMBER 31 INCEPTION
6/30/00 ------------------- 11/21/97 TO
(UNAUDITED) 1999 1998 12/31/97
<S> <C> <C> <C> <C>
Net asset value, beginning of period $14.30 $12.39 $11.45 $11.34
INCOME FROM INVESTMENT OPERATIONS(7)
Net investment income (loss) (0.04)(6) --(6) 0.08(8) 0.01(8)
Net realized and unrealized gain (loss) (0.18) 2.81 0.96 0.11
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS (0.22) 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 (0.22) 1.91 0.94 0.11
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $14.08 $14.30 $12.39 $11.45
====== ====== ====== ======
Total return(1) (1.54)%(3) 22.98% 9.08% 1.09%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,156 $1,436 $2,122 $414
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 3.86%(2) 2.66% 1.80% 1.80%(2)
Net investment income (0.62)%(2) --% 1.14%(8) 1.20%(2)(8)
Portfolio turnover 2%(3) 42% 40% 64%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------
SIX MONTHS YEAR ENDED FROM
ENDED DECEMBER 31 INCEPTION
6/30/00 ------------------- 11/21/97 TO
(UNAUDITED) 1999 1998 12/31/97
<S> <C> <C> <C> <C>
Net asset value, beginning of period $14.20 $12.35 $11.45 $11.34
INCOME FROM INVESTMENT OPERATIONS(7)
Net investment income (loss) (0.09)(6) (0.12)(6) 0.04(8) 0.01(8)
Net realized and unrealized gain (loss) (0.17) 2.81 0.92 0.11
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS (0.26) 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 (0.26) 1.85 0.90 0.11
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $13.94 $14.20 $12.35 $11.45
====== ====== ====== ======
Total return(1) (1.90)%(3) 22.06% 8.36% 1.03%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,955 $1,773 $1,873 $713
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 4.54%(2) 3.44% 2.50% 2.50%(2)
Net investment income (1.25)%(2) (0.90)% 0.44%(8) 0.50%(2)(8)
Portfolio turnover 2%(3) 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 23
<PAGE>
Phoenix-Zweig Foreign Equity Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
-------------------------------------------------------
SIX MONTHS YEAR ENDED FROM
ENDED DECEMBER 31 INCEPTION
6/30/00 ------------------- 11/21/97 TO
(UNAUDITED) 1999 1998 12/31/97
<S> <C> <C> <C> <C>
Net asset value, beginning of period $14.15 $12.33 $11.45 $11.34
INCOME FROM INVESTMENT OPERATIONS(6)
Net investment income (loss) (0.09)(5) (0.12)(5) 0.05(7) 0.01(7)
Net realized and unrealized gain (loss) (0.17) 2.78 0.90 0.11
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS (0.26) 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 (0.26) 1.82 0.88 0.11
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $13.89 $14.15 $12.33 $11.45
====== ====== ====== ======
Total return(1) (1.84)%(3) 21.85% 8.27% 1.03%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $3,084 $3,727 $3,384 $1,177
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 4.55%(2) 3.46% 2.50% 2.50%(2)
Net investment income (1.34)%(2) (0.94)% 0.44%(7) 0.50%(2)(7)
Portfolio turnover 2%(3) 42% 40% 64%(3)
</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) Computed using average shares outstanding.
(6) Distributions are made in accordance with the prospectus; however, class
level per share income from investment operations may vary from anticipated
results depending on the timing of share purchases and redemptions.
(7) Includes realized gains and losses on foreign currency transactions.
24 See Notes to Financial Statements
<PAGE>
PHOENIX-ZWEIG GOVERNMENT CASH FUND
INVESTMENTS AT JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
FACE
VALUE DISCOUNT MATURITY
(000) DESCRIPTION RATE DATE VALUE
------- ----------- -------- --------- ------------
<C> <S> <C> <C> <C> <C>
FEDERAL AGENCY SECURITIES--72.5%
$15,000 Freddie Mac Discount Note................... 6.42% 7/11/00 $ 14,973,250
5,000 Fannie Mae Discount Note.................... 6.43 7/13/00 4,989,283
15,000 Freddie Mac Discount Note................... 6.43 7/18/00 14,954,454
15,000 FHLB Discount Corp.......................... 6.42 7/21/00 14,946,500
10,000 Freddie Mac Discount Note................... 6.45 7/25/00 9,957,000
10,000 FHLB Discount Corp.......................... 6.43 7/28/00 9,951,775
10,000 Freddie Mac Discount Note................... 6.41 8/1/00 9,944,803
10,000 Freddie Mac Discount Note................... 6.52 8/17/00 9,914,878
10,000 FC Discount Note............................ 6.42 8/21/00 9,909,050
10,000 Fannie Mae Discount Note.................... 6.53 8/24/00 9,902,050
10,000 Fannie Mae Discount Note.................... 6.44 8/31/00 9,890,878
15,000 FHLB Discount Corp.......................... 6.44 9/13/00 14,801,433
10,000 Fannie Mae Discount Note.................... 6.48 9/21/00 9,852,400
-----------------------------------------------------------------------------------------
TOTAL FEDERAL AGENCY SECURITIES 143,987,754
-----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FACE
VALUE INTEREST MATURITY
(000) DESCRIPTION RATE DATE VALUE
------- ----------- -------- --------- ------------
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENT--25.6%
$29,733 Morgan Stanley & Co., Inc. repurchase
agreement, 6.72%, dated 6/30/00 due 7/3/00,
repurchase price $29,749,650, collateralized
by Fannie Mae Bonds 5.50% to 7%, 10/1/14 to
11/1/29, market value $30,536,233...........
6.72% 7/3/00 $ 29,733,000
21,000 Prudential Securities repurchase agreement,
6.80%, dated 6/30/00 due 7/3/00, repurchase
price $21,011,900, collaterlized by FHLB
Discount Corp. 6.66%, 7/21/00, market value
$21,420,356 ................................
6.80 7/3/00 21,000,000
-----------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT 50,733,000
-----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--98.1%
(IDENTIFIED COST $194,720,754) 194,720,754(a)
Cash and receivables, less
liabilities--1.9% 3,734,107
------------
NET ASSETS--100.0% $198,454,861
============
</TABLE>
(a) Federal Income Tax Information: At June 30, 2000, the aggregate cost of
securities was the same for book and tax purposes.
See Notes to Financial Statements 25
<PAGE>
Phoenix-Zweig Government Cash Fund
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value,
exclusive of repurchase agreements
(Identified cost $143,987,754) $ 143,987,754
Repurchase agreements, at value
(Identified cost $50,733,000) 50,733,000
Cash 959
Receivables
Fund shares sold 7,452,384
Interest 9,517
Prepaid expenses 702
--------------
Total assets 202,184,316
--------------
LIABILITIES
Payables
Fund shares repurchased 3,493,656
Dividend distributions 131,414
Investment advisory fee 33,097
Distribution fee 16,493
Transfer agent fee 13,571
Financial agent fee 4,378
Trustees' fee 798
Accrued expenses 36,048
--------------
Total liabilities 3,729,455
--------------
NET ASSETS $ 198,454,861
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 198,454,861
--------------
NET ASSETS $ 198,454,861
==============
CLASS A
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $3,705,056) 3,705,056
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 $4,247,759) 4,247,759
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 $3,562,228) 3,562,228
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 $4,415,121) 4,415,121
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 $182,524,697) 182,524,697
Net asset value and offering price per share $1.00
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 6,064,844
--------------
Total investment income 6,064,844
--------------
EXPENSES
Investment advisory fee 501,751
Distribution fee, Class A 13,450
Distribution fee, Class B 21,745
Distribution fee, Class C 6,618
Distribution fee, Class M 57,415
Financial agent fee 25,222
Transfer agent 46,843
Registration 36,047
Custodian 17,225
Professional 12,497
Printing 9,652
Trustees 4,036
Miscellaneous 4,266
--------------
Total expenses 756,767
Less expenses borne by investment adviser (309,905)
--------------
Net expenses 446,862
--------------
NET INVESTMENT INCOME $ 5,617,982
==============
</TABLE>
26 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Government Cash Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/00 Year Ended
(Unaudited) 12/31/99
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 5,617,982 $ 7,715,219
Net realized gain (loss) -- 817
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 5,617,982 7,716,036
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (244,758) (519,158)
Net investment income, Class B (101,881) (90,797)
Net investment income, Class C (118,410) (272,605)
Net investment income, Class I (102,420) (108,716)
Net investment income, Class M (5,050,513) (6,723,943)
Net realized gains, Class A -- (71)
Net realized gains, Class B -- (14)
Net realized gains, Class C -- (50)
Net realized gains, Class I -- (22)
Net realized gains, Class M -- (660)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (5,617,982) (7,716,036)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(85,222,454 and 520,346,360 shares,
respectively) 85,222.454 520,346,360
Net asset value of shares issued from
reinvestment of distributions
(144,056 and 426,045 shares,
respectively) 144,056 426,045
Cost of shares repurchased (87,771,501
and 522,951,700 shares,
respectively) (87,771,501) (522,951,700)
------------ ------------
Total (2,404,991) (2,179,295)
------------ ------------
CLASS B
Proceeds from sales of shares
(1,215,362 and 5,274,685 shares,
respectively) 1,215,362 5,274,685
Net asset value of shares issued from
reinvestment of distributions
(81,329 and 77,651 shares,
respectively) 81,329 77,651
Cost of shares repurchased (1,699,248
and 2,440,188 shares, respectively) (1,699,248) (2,440,188)
------------ ------------
Total (402,557) 2,912,148
------------ ------------
CLASS C
Proceeds from sales of shares
(3,660,973 and 13,107,153 shares,
respectively) 3,660,973 13,107,153
Net asset value of shares issued from
reinvestment of distributions
(107,564 and 273,984 shares,
respectively) 107,564 273,984
Cost of shares repurchased (6,188,699
and 14,022,767 shares, respectively) (6,188,699) (14,022,767)
------------ ------------
Total (2,420,162) (641,630)
------------ ------------
CLASS I
Proceeds from sales of shares
(2,306,896 and 99,867 shares,
respectively) 2,306,896 99,867
Net asset value of shares issued from
reinvestment of distributions
(102,420 and 88,478 shares,
respectively) 102,420 88,478
Cost of shares repurchased (140,000
and 926,871 shares, respectively) (140,000) (926,871)
------------ ------------
Total 2,269,316 (738,526)
------------ ------------
CLASS M
Proceeds from sales of shares
(440,426,879 and 513,883,273 shares,
respectively) 440,426,879 513,883,273
Net asset value of shares issued from
reinvestment of distributions
(4,263,096 and 5,288,093 shares,
respectively) 4,263,096 5,288,093
Cost of shares repurchased
(408,479,635 and 448,121,158 shares,
respectively) (408,479,635) (448,121,158)
------------ ------------
Total 36,210,340 71,050,208
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS 33,251,946 70,402,905
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS 33,251,946 70,402,905
NET ASSETS
Beginning of period 165,202,915 94,800,010
------------ ------------
END OF PERIOD $198,454,861 $165,202,915
============ ============
</TABLE>
See Notes to Financial Statements 27
<PAGE>
Phoenix-Zweig Government Cash Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/00 ------------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.03 0.04 0.05 0.05 0.05 0.05
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT
OPERATIONS 0.03 0.04 0.05 0.05 0.05 0.05
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.03) (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 $ 1.00
====== ====== ====== ====== ====== ======
Total return(1) 2.65%(3) 4.52% 4.91% 4.97% 4.83% 5.08%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $3,705 $6,110 $8,290 $2,472 $3,360 $3,661
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 0.65%(2) 0.65% 0.65% 0.65% 0.65% 0.87%
Net investment income 5.46%(2) 4.41% 4.75% 4.85% 4.73% 4.97%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED DECEMBER 31 INCEPTION
6/30/00 ------------------------------------ 4/8/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
<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 0.02 0.04 0.04 0.04 0.03
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT
OPERATIONS 0.02 0.04 0.04 0.04 0.03
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.02) (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 $ 1.00
====== ====== ====== ====== ======
Total return(1) 2.30%(3) 3.80% 4.18% 4.24% 3.03%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $4,248 $4,650 $1,738 $336 $33
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 1.35%(2) 1.35% 1.35% 1.35% 1.35%(2)
Net investment income 4.69%(2) 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 1.22%,
1.09%, 1.30%, 1.74%, 1.31% and 1.34% for the periods ended June 30, 2000,
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 2.13%,
2.51%, 3.70%, 7.49% and 1.95% for the periods ended June 30, 2000, December
31, 1999, 1998, 1997 and 1996, respectively.
28 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 C
--------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/00 ------------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.03 0.04 0.05 0.05 0.05 0.05
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT
OPERATIONS 0.03 0.04 0.05 0.05 0.05 0.05
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.03) (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 $ 1.00
====== ====== ====== ====== ====== ======
Total return(1) 2.65%(3) 4.52% 4.91% 4.97% 4.83% 5.08%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $3,562 $5,982 $6,624 $2,661 $4,535 $4,458
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 0.65%(2) 0.65% 0.65% 0.65% 0.65% 0.87%
Net investment income 5.37%(2) 4.43% 4.73% 4.85% 4.73% 4.97%
</TABLE>
<TABLE>
<CAPTION>
CLASS I
---------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED DECEMBER 31 INCEPTION
6/30/00 ------------------------------------ 11/1/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
<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 0.03 0.05 0.05 0.05 0.01
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT
OPERATIONS 0.03 0.05 0.05 0.05 0.01
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.03) (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 $ 1.00
====== ====== ====== ====== ======
Total return(1) 2.80%(3) 4.83% 5.23% 5.28% 0.80%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $4,415 $2,146 $2,884 $100 $1,401
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 0.35%(2) 0.35% 0.35% 0.35% 0.35%(2)
Net investment income 5.74%(2) 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 1.46%,
1.35%, 1.38%, 1.65%, 1.25% and 1.15% for the periods ended June 30, 2000,
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 1.21%,
0.67%, 1.47%, 0.82% and 0.73% for the periods ended June 30, 2000,
December 31, 1999, 1998, 1997 and 1996, respectively.
See Notes to Financial Statements 29
<PAGE>
Phoenix-Zweig Government Cash Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS M
------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/00 ----------------------------------------
(UNAUDITED) 1999 1998 1997
<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 0.03 0.05 0.05 0.05
-------- -------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS 0.03 0.05 0.05 0.05
-------- -------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.03) (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
======== ======== ======= =======
Total return(1) 2.77%(3) 4.77% 5.16% 5.22%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $182,525 $146,314 $75,264 $56,599
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 0.41%(2) 0.41% 0.41% 0.41%
Net investment income 5.63%(2) 4.71% 5.01% 5.09%
<CAPTION>
CLASS M
-----------------------
YEAR ENDED DECEMBER 31
-----------------------
1996 1995
<S> <C> <C>
Net asset value, beginning of
period $ 1.00 $ 1.00
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.05 0.05
------- -------
TOTAL FROM INVESTMENT
OPERATIONS 0.05 0.05
------- -------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.05) (0.05)
------- -------
Change in net asset value -- --
------- -------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00
======= =======
Total return(1) 5.09% 5.32%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $45,271 $48,515
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 0.40% 0.64%
Net investment income 4.98% 5.20%
</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 0.67%,
0.66%, 0.69%, 0.73%, 0.72% and 0.74% for the periods ended June 30, 2000,
December 31, 1999, 1998, 1997, 1996 and 1995, respectively.
30 See Notes to Financial Statements
<PAGE>
PHOENIX-ZWEIG GOVERNMENT FUND
INVESTMENTS AT JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--74.0%
U.S. TREASURY BONDS--28.2%
U.S. Treasury Bonds 7.25%, 8/15/22...... AAA $ 400 $ 448,750
U.S. Treasury Bonds 6.50%, 11/15/26..... AAA 3,100 3,233,687
U.S. Treasury Bonds 6.25%, 5/15/30...... AAA 4,600 4,828,565
-----------
8,511,002
-----------
U.S. TREASURY NOTES--45.8%
U.S. Treasury Notes 10.75%, 2/15/03..... AAA 1,000 1,102,500
U.S. Treasury Notes 10.75%, 5/15/03..... AAA 2,000 2,225,000
U.S. Treasury Notes 7.25%, 5/15/04...... AAA 6,000 6,185,628
U.S. Treasury Notes 6.50%, 2/15/10...... AAA 4,200 4,336,383
-----------
13,849,511
-----------
- ------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES
(IDENTIFIED COST $22,719,682) 22,360,513
- ------------------------------------------------------------------------
AGENCY MORTGAGE-BACKED
SECURITIES--20.8%
Fannie Mae 8.25%, 12/18/00.............. Aaa(b) 950 956,128
Freddie Mac 10.50%, 1/1/01.............. Aaa(b) 1 713
Freddie Mac 6.875%, 1/15/05............. Aaa(b) 2,800 2,782,758
Freddie Mac 5.125%, 10/15/08............ Aaa(b) 2,700 2,351,030
Freddie Mac 10.50%, 6/1/11.............. Aaa(b) 50 53,682
Freddie Mac 12%, 11/1/15................ Aaa(b) 96 108,047
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
GNMA 12.50%, 11/20/13................... AAA $ 8 $ 8,866
GNMA 12%, 9/15/15....................... AAA 18 20,383
GNMA 8%, 8/15/22........................ AAA 6 6,529
- ------------------------------------------------------------------------
TOTAL AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $6,616,520) 6,288,136
- ------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--94.8%
(IDENTIFIED COST $29,336,202) 28,648,649
- ------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS--4.1%
REPURCHASE AGREEMENT--4.1%
Morgan Stanley & Co., Inc. repurchase
agreement, 6.72%, dated 6/30/00 due
7/3/00, repurchase price $1,250,700,
collateralized by Fannie Mae
Bond 7.50%, 9/1/29, market value
$1,287,828.............................. 1,250 1,250,000
- ------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $1,250,000) 1,250,000
- ------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--98.9%
(IDENTIFIED COST $30,586,202) 29,898,649(a)
Cash and receivables, less
liabilities--1.1% 332,653
-----------
NET ASSETS--100.0% $30,231,302
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $207,391 and gross
depreciation of $894,944 for federal income tax purposes. At June 30, 2000,
the aggregate cost of securities for federal income tax purpose was
$30,586,202.
(b) As rated by Moody's, Fitch or Duff & Phelps.
See Notes to Financial Statements 31
<PAGE>
Phoenix-Zweig Government Fund
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $30,586,202) $ 29,898,649
Cash 522
Receivables
Interest 428,596
Fund shares sold 24,172
Prepaid expenses 303
--------------
Total assets 30,352,242
--------------
LIABILITIES
Payables
Fund shares purchased 47,083
Transfer agent fee 18,673
Investment advisory fee 15,009
Distribution fee 9,752
Trustees' fee 1,473
Financial agent fee 1,276
Accrued expenses 27,674
--------------
Total liabilities 120,940
--------------
NET ASSETS $ 30,231,302
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 39,823,463
Undistributed net investment income 111,154
Accumulated net realized loss (9,015,762)
Net unrealized depreciation (687,553)
--------------
NET ASSETS $ 30,231,302
==============
CLASS A
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $19,636,275) 2,022,540
Net asset value per share $9.71
Offering price per share $9.71/(1-4.75%) $10.19
CLASS B
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $1,732,673) 177,272
Net asset value and offering price per share $9.77
CLASS C
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $5,452,623) 562,893
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 $3,409,731) 350,315
Net asset value and offering price per share $9.73
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 1,076,820
--------------
Total investment income 1,076,820
--------------
EXPENSES
Investment advisory fee 95,518
Distribution fee, Class A 30,962
Distribution fee, Class B 8,567
Distribution fee, Class C 23,024
Financial agent fee 11,144
Transfer agent 47,667
Registration 23,554
Printing 14,390
Professional 11,721
Custodian 6,152
Trustees 1,864
Miscellaneous 5,995
--------------
Total expenses 280,558
--------------
NET INVESTMENT INCOME 796,262
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (309,450)
Net change in unrealized appreciation (depreciation) on
investments 197,482
--------------
NET LOSS ON INVESTMENTS (111,968)
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 684,294
==============
</TABLE>
32 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Government Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/00 Year Ended
(Unaudited) 12/31/99
----------- ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 796,262 $ 1,844,729
Net realized gain (loss) (309,450) (524,883)
Net change in unrealized appreciation
(depreciation) 197,482 (2,530,574)
----------- ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 684,294 (1,210,728)
----------- ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (471,973) (1,149,841)
Net investment income, Class B (33,694) (87,786)
Net investment income, Class C (124,898) (389,322)
Net investment income, Class I (82,876) (155,187)
----------- ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (713,441) (1,782,136)
----------- ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (43,717
and 149,538 shares, respectively) 425,392 1,518,826
Net asset value of shares issued from
reinvestment of distributions
(29,125 and 70,016 shares,
respectively) 282,258 698,694
Cost of shares repurchased (306,686
and 814,413 shares, respectively) (2,975,529) (8,167,750)
----------- ------------
Total (2,267,879) (5,950,230)
----------- ------------
CLASS B
Proceeds from sales of shares (50,850
and 127,725 shares, respectively) 495,590 1,295,107
Net asset value of shares issued from
reinvestment of distributions
(1,477 and 4,617 shares,
respectively) 14,413 46,246
Cost of shares repurchased (44,411 and
172,012 shares, respectively) (433,297) (1,721,621)
----------- ------------
Total 76,706 (380,268)
----------- ------------
CLASS C
Proceeds from sales of shares (8,296
and 181,165 shares, respectively) 80,396 1,821,289
Net asset value of shares issued from
reinvestment of distributions
(6,621 and 21,234 shares,
respectively) 64,015 211,467
Cost of shares repurchased (181,323
and 611,333 shares, respectively) (1,753,088) (6,113,837)
----------- ------------
Total (1,608,677) (4,081,081)
----------- ------------
CLASS I
Proceeds from sales of shares (0 and
37,065 shares, respectively) -- 371,104
Net asset value of shares issued from
reinvestment of distributions
(8,530 and 15,534 shares,
respectively) 82,876 155,187
Cost of shares repurchased (0 and
5,638 shares, respectively) -- (57,000)
----------- ------------
Total 82,876 469,291
----------- ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (3,716,974) (9,942,288)
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS (3,746,121) (12,935,152)
NET ASSETS
Beginning of period 33,977,423 46,912,575
----------- ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$111,154 AND $28,333, RESPECTIVELY] $30,231,302 $ 33,977,423
=========== ============
</TABLE>
See Notes to Financial Statements 33
<PAGE>
Phoenix-Zweig Government Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/00 -----------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 9.72 $ 10.44 $ 10.09 $ 9.81 $ 10.39 $ 9.63
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.25 0.46 0.53 0.52 0.53 0.52(1)
Net realized and unrealized
gain (loss) (0.04) (0.73) 0.35 0.28 (0.58) 0.77
------- --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 0.21 (0.27) 0.88 0.80 (0.05) 1.29
------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.22) (0.45) (0.53) (0.52) (0.53) (0.53)
------- --------- --------- --------- --------- ---------
Change in net asset value (0.01) (0.72) 0.35 0.28 (0.58) 0.76
------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 9.71 $ 9.72 $ 10.44 $ 10.09 $ 9.81 $ 10.39
======= ========= ========= ========= ========= =========
Total return(2) 2.21%(4) (2.58)% 8.91% 8.42% (0.42)% 13.84%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $19,636 $21,922 $29,767 $28,062 $33,848 $42,207
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.67%(3) 1.35% 1.32% 1.36% 1.14%(5) 1.26%
Net investment income 5.10%(3) 4.67% 5.09% 5.26% 5.25% 5.22%
Portfolio turnover 101%(4) 183% 48% 128% 170% 195%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED DECEMBER 31 INCEPTION
6/30/00 ------------------------------- 4/8/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 9.78 $ 10.52 $ 10.15 $ 9.86 $ 9.76
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.21 0.39 0.44 0.46 0.29
Net realized and unrealized
gain (loss) (0.03) (0.74) 0.37 0.26 0.11
------ --------- --------- --------- ------
TOTAL FROM INVESTMENT
OPERATIONS 0.18 (0.35) 0.81 0.72 0.40
------ --------- --------- --------- ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.19) (0.39) (0.44) (0.43) (0.30)
------ --------- --------- --------- ------
Change in net asset value (0.01) (0.74) 0.37 0.29 0.10
------ --------- --------- --------- ------
NET ASSET VALUE, END OF PERIOD $ 9.77 $ 9.78 $ 10.52 $ 10.15 $ 9.86
====== ========= ========= ========= ======
Total return(2) 1.88%(4) (3.23)% 8.20% 7.55% 4.16%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $1,733 $1,657 $2,199 $1,215 $513
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.37%(3) 2.06% 2.02% 2.06% 1.84%(3)(6)
Net investment income 4.39%(3) 3.97% 4.39% 4.56% 4.55%(3)
Portfolio turnover 101%(4) 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.
34 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 C
------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/00 -----------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 9.69 $ 10.42 $ 10.08 $ 9.81 $ 10.38 $ 9.62
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.23 0.42 0.47 0.48 0.49 0.48(1)
Net realized and unrealized
gain (loss) (0.03) (0.74) 0.36 0.27 (0.58) 0.76
------ --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 0.20 (0.32) 0.83 0.75 (0.09) 1.24
------ --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.20) (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 $ 9.69 $ 10.42 $ 10.08 $ 9.81 $ 10.38
====== ========= ========= ========= ========= =========
Total return(2) 2.07%(4) (3.09)% 8.46% 7.86% (0.82)% 13.27%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $5,453 $7,068 $11,859 $10,199 $14,330 $19,778
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.11%(3) 1.80% 1.77% 1.81% 1.59%(5) 1.71%
Net investment income 4.64%(3) 4.22% 4.64% 4.81% 4.80% 4.77%
Portfolio turnover 101%(4) 183% 48% 128% 170% 195%
</TABLE>
<TABLE>
<CAPTION>
CLASS I
---------------------------------------------
SIX MONTHS YEAR ENDED FROM
ENDED DECEMBER 31 INCEPTION
6/30/00 -------------------- 7/14/97 TO
(UNAUDITED) 1999 1998 12/31/97
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 9.74 $ 10.48 $ 10.11 $ 9.88
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.26 0.49 0.55 0.26
Net realized and unrealized
gain (loss) (0.03) (0.74) 0.37 0.23
------ --------- --------- ------
TOTAL FROM INVESTMENT
OPERATIONS 0.23 (0.25) 0.92 0.49
------ --------- --------- ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.24) (0.49) (0.55) (0.26)
------ --------- --------- ------
Change in net asset value (0.01) (0.74) 0.37 0.23
------ --------- --------- ------
NET ASSET VALUE, END OF PERIOD $ 9.73 $ 9.74 $ 10.48 $10.11
====== ========= ========= ======
Total return(2) 2.39%(4) (2.31)% 9.33% 5.01%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $3,410 $3,330 $3,088 $1,050
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.38%(3) 1.06% 1.02% 1.06%(3)
Net investment income 5.40%(3) 4.98% 5.39% 5.56%(3)
Portfolio turnover 101%(4) 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.
See Notes to Financial Statements 35
<PAGE>
PHOENIX-ZWEIG GROWTH & INCOME FUND
INVESTMENTS AT JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C> <C>
COMMON STOCKS--62.3%
AIR FREIGHT--0.4%
Expeditors International of Washington,
Inc..................................... 1,400 $ 66,500
ALUMINUM--0.4%
Alcoa, Inc.............................. 2,400 69,600
AUTO PARTS & EQUIPMENT--0.0%
Visteon Corp.(b)........................ 105 1,270
AUTOMOBILES--0.2%
Ford Motor Co........................... 800 34,400
BANKS (MAJOR REGIONAL)--4.6%
AmSouth Bancorp......................... 1,200 18,900
Bank of New York Co., Inc. (The)........ 2,200 102,300
Fifth Third Bancorp..................... 1,100 69,575
Firstar Corp............................ 1,600 33,700
Huntington Bancshares, Inc.............. 1,200 18,975
KeyCorp................................. 700 12,337
Mellon Financial Corp................... 2,700 98,381
National City Corp...................... 1,600 27,300
Northern Trust Corp..................... 1,900 123,619
Regions Financial Corp.................. 1,200 23,850
SouthTrust Corp......................... 400 9,050
State Street Corp....................... 1,100 116,669
SunTrust Banks, Inc..................... 1,400 63,962
Wells Fargo & Co........................ 2,400 93,000
-----------
811,618
-----------
BANKS (MONEY CENTER)--0.6%
Bank of America Corp.................... 1,300 55,900
Chase Manhattan Corp. (The)............. 1,200 55,275
-----------
111,175
-----------
BANKS (REGIONAL)--0.6%
Investors Financial Services Corp....... 1,600 63,500
Marshall & Ilsley Corp.................. 900 37,350
-----------
100,850
-----------
BEVERAGES (NON-ALCOHOLIC)--0.2%
PepsiCo, Inc............................ 800 35,550
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C> <C>
BIOTECHNOLOGY--1.4%
Amgen, Inc.(b).......................... 500 $ 35,125
Immunex Corp.(b)........................ 600 29,662
Techne Corp.(b)......................... 1,400 182,000
-----------
246,787
-----------
BROADCASTING (TELEVISION, RADIO & CABLE)--0.2%
Univision Communications, Inc. Class
A(b).................................... 300 31,050
CHEMICALS (SPECIALTY)--0.4%
Ecolab, Inc............................. 1,600 62,500
COMMUNICATIONS EQUIPMENT--3.5%
ADC Telecommunications, Inc.(b)......... 1,100 92,292
ADTRAN, Inc.(b)......................... 800 47,900
Carrier Access Corp.(b)................. 600 31,725
CommScope, Inc.(b)...................... 1,400 57,400
Comverse Technology, Inc.(b)............ 400 37,200
Ditech Communications Corp.(b).......... 800 75,650
Harmonic, Inc.(b)....................... 500 12,375
Motorola, Inc........................... 1,200 34,875
QUALCOMM, Inc.(b)....................... 200 12,000
Scientific-Atlanta, Inc................. 1,600 119,200
Sycamore Networks, Inc.(b).............. 600 66,225
Westell Technologies, Inc.(b)........... 1,100 16,500
Wireless Facilities, Inc.(b)............ 300 15,281
-----------
618,623
-----------
COMPUTERS (HARDWARE)--1.0%
Compaq Computer Corp.................... 1,100 28,119
Dell Computer Corp.(b).................. 300 14,794
Hewlett-Packard Co...................... 500 62,437
Sun Microsystems, Inc.(b)............... 800 72,750
-----------
178,100
-----------
COMPUTERS (NETWORKING)--1.0%
Cisco Systems, Inc.(b).................. 1,736 110,344
Network Appliance, Inc. (b)............. 700 56,350
-----------
166,694
-----------
COMPUTERS (PERIPHERALS)--0.2%
Crossroads Systems, Inc.(b)............. 300 7,575
</TABLE>
36 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Growth & Income Fund
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C> <C>
COMPUTERS (PERIPHERALS)--CONTINUED
EMC Corp.(b)............................ 400 $ 30,775
-----------
38,350
-----------
COMPUTERS (SOFTWARE & SERVICES)--4.1%
Adobe Systems, Inc...................... 500 65,000
Amdocs Ltd.(b).......................... 600 46,050
America Online, Inc.(b)................. 500 26,375
Autodesk, Inc........................... 600 20,812
Aware, Inc.(b).......................... 700 35,787
eBay, Inc.(b)........................... 400 21,725
Foundry Networks, Inc.(b)............... 300 33,150
Henry (Jack) & Associates, Inc.......... 500 25,062
Infonet Services Corp. Class B(b)....... 1,100 13,131
Mercury Interactive Corp.(b)............ 400 38,700
Oracle Corp.(b)......................... 1,000 84,062
Portal Software, Inc.(b)................ 500 31,937
Red Hat, Inc.(b)........................ 900 24,356
Siebel Systems, Inc. (b)................ 400 65,425
Software.com, Inc.(b)................... 300 38,962
TIBCO Software, Inc.(b)................. 500 53,617
VERITAS Software Corp.(b)............... 250 28,254
VeriSign, Inc.(b)....................... 100 17,650
Yahoo!, Inc.(b)......................... 400 49,550
-----------
719,605
-----------
CONSUMER FINANCE--0.5%
MBNA Corp............................... 2,400 65,100
Metris Cos., Inc........................ 300 7,537
Providian Financial Corp................ 100 9,000
-----------
81,637
-----------
DISTRIBUTORS (FOOD & HEALTH)--0.8%
McKesson HBOC, Inc...................... 700 14,656
Patterson Dental Co.(b)................. 600 30,600
SYSCO Corp.............................. 2,200 92,675
-----------
137,931
-----------
ELECTRICAL EQUIPMENT--3.5%
AVX Corp................................ 2,600 59,637
Advanced Energy Industries, Inc.(b)..... 700 41,256
Amphenol Corp. Class A(b)............... 1,100 72,806
Ballard Power Systems, Inc.(b).......... 400 35,925
Cohu, Inc............................... 900 24,272
General Electric Co..................... 3,300 174,900
KEMET Corp.(b).......................... 400 10,025
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C> <C>
ELECTRICAL EQUIPMENT--CONTINUED
Molex, Inc.............................. 1,175 $ 56,547
Symbol Technologies, Inc................ 1,700 94,669
Zomax, Inc.(b).......................... 3,700 48,562
-----------
618,599
-----------
ELECTRONICS (INSTRUMENTATION)--1.0%
Keithley Instruments, Inc............... 200 17,425
Methode Electronics, Inc. Class A....... 600 23,175
Newport Corp............................ 100 10,737
PE Corp.-PE Biosystems Group............ 900 59,287
PerkinElmer, Inc........................ 1,000 66,125
-----------
176,749
-----------
ELECTRONICS (SEMICONDUCTORS)--5.9%
Amkor Technology, Inc.(b)............... 900 31,781
Analog Devices, Inc.(b)................. 1,400 106,400
Broadcom Corp. Class A(b)............... 200 43,788
Burr-Brown Corp.(b)..................... 700 60,681
Dallas Semiconductor Corp............... 2,200 89,650
Intel Corp.............................. 1,200 160,425
Kopin Corp.(b).......................... 400 27,700
Linear Technology Corp.................. 3,500 223,781
Micrel, Inc.(b)......................... 800 34,750
Microchip Technology, Inc.(b)........... 950 55,352
Semtech Corp.(b)........................ 700 53,539
Texas Instruments, Inc.................. 1,700 116,769
TranSwitch Corp.(b)..................... 300 23,156
-----------
1,027,772
-----------
EQUIPMENT (SEMICONDUCTORS)--1.0%
Cymer, Inc.(b).......................... 1,400 66,850
Helix Technology Corp................... 400 15,600
KLA-Tencor Corp.(b)..................... 300 17,569
Teradyne, Inc.(b)....................... 1,100 80,850
-----------
180,869
-----------
FINANCIAL (DIVERSIFIED)--2.5%
Ambac Financial Group, Inc.............. 600 32,888
American Express Co..................... 800 41,700
Citigroup, Inc.......................... 1,850 111,463
Fannie Mae.............................. 1,200 62,625
Freddie Mac............................. 1,000 40,500
Morgan Stanley Dean Witter & Co......... 1,700 141,525
-----------
430,701
-----------
</TABLE>
See Notes to Financial Statements 37
<PAGE>
Phoenix-Zweig Growth & Income Fund
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C> <C>
FOODS--0.2%
Keebler Foods Co........................ 800 $ 29,700
FOOTWEAR--0.1%
Timberland Co. (The) Class A(b)......... 200 14,163
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--0.0%
MGM Grand, Inc.......................... 100 3,213
GOLD & PRECIOUS METALS MINING--0.1%
Homestake Mining Co..................... 3,600 24,750
HEALTH CARE (DIVERSIFIED)--1.3%
Allergan, Inc........................... 1,100 81,950
Bristol-Myers Squibb Co................. 1,200 69,900
IVAX Corp.(b)........................... 1,000 41,500
Johnson & Johnson....................... 400 40,750
-----------
234,100
-----------
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--3.0%
Forest Laboratories, Inc.(b)............ 1,100 111,100
ICOS Corp.(b)........................... 1,000 44,000
Pfizer, Inc............................. 4,900 235,200
QLT PhotoTherapeutics, Inc.(b).......... 500 38,656
Schering-Plough Corp.................... 1,800 90,900
-----------
519,856
-----------
HEALTH CARE (GENERIC AND OTHER)--0.3%
Jones Pharma, Inc....................... 900 35,944
Mylan Laboratories, Inc................. 1,300 23,725
-----------
59,669
-----------
HEALTH CARE (MANAGED CARE)--0.3%
Oxford Health Plans, Inc.(b)............ 1,500 35,719
UnitedHealth Group, Inc................. 200 17,150
-----------
52,869
-----------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.9%
Bausch & Lomb, Inc...................... 200 15,475
Biomet, Inc............................. 300 11,531
Medtronic, Inc.......................... 1,300 64,756
MiniMed, Inc. (b)....................... 300 35,400
Stryker Corp............................ 500 21,875
-----------
149,037
-----------
HEALTH CARE (SPECIALIZED SERVICES)--0.3%
Laboratory Corporation of America
Holdings(b)............................. 700 53,988
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C> <C>
HOUSEHOLD FURNISHINGS & APPLIANCES--0.1%
Whirlpool Corp.......................... 400 $ 18,650
INSURANCE (MULTI-LINE)--0.5%
American International Group, Inc....... 800 94,000
INSURANCE BROKERS--0.3%
Aon Corp................................ 1,400 43,488
INVESTMENT BANKING/BROKERAGE--2.8%
AXA Financial, Inc...................... 1,500 51,000
Bear Stearns Cos., Inc. (The)........... 124 5,162
eSPEED, Inc. Class A(b)................. 700 30,406
Goldman Sachs Group, Inc. (The)......... 500 47,438
Lehman Brothers Holdings, Inc........... 500 47,281
Merrill Lynch & Co., Inc................ 800 92,000
Schwab (Charles) Corp. (The)............ 4,850 163,081
Waddell & Reed Financial, Inc. Class
A....................................... 1,600 52,500
-----------
488,868
-----------
INVESTMENT MANAGEMENT--0.9%
Franklin Resources, Inc................. 1,000 30,375
Price (T. Rowe) Associates, Inc......... 3,000 127,500
-----------
157,875
-----------
IRON & STEEL--0.1%
Nucor Corp.............................. 700 23,231
LEISURE TIME (PRODUCTS)--0.6%
Harley-Davidson, Inc.................... 2,900 111,650
MACHINERY (DIVERSIFIED)--0.3%
Dover Corp.............................. 1,300 52,731
Ingersoll-Rand Co....................... 200 8,050
-----------
60,781
-----------
MANUFACTURING (DIVERSIFIED)--0.6%
Johnson Controls, Inc................... 600 30,788
Tyco International Ltd.................. 1,400 66,325
-----------
97,113
-----------
MANUFACTURING (SPECIALIZED)--0.5%
Avery Dennison Corp..................... 500 33,563
CTS Corp................................ 100 4,500
Millipore Corp.......................... 700 52,763
-----------
90,826
-----------
</TABLE>
38 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Growth & Income Fund
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C> <C>
NATURAL GAS--0.1%
Williams Cos., Inc. (The)............... 500 $ 20,844
OIL & GAS (DRILLING & EQUIPMENT)--0.1%
BJ Services Co.(b)...................... 400 25,000
OIL & GAS (EXPLORATION & PRODUCTION)--0.7%
Kerr-McGee Corp......................... 200 11,788
Unocal Corp............................. 1,100 36,438
Vastar Resources, Inc................... 1,000 82,188
-----------
130,414
-----------
OIL & GAS (REFINING & MARKETING)--0.2%
Tosco Corp.............................. 1,100 31,488
Valero Energy Corp...................... 200 6,350
-----------
37,838
-----------
OIL (DOMESTIC INTEGRATED)--0.2%
Conoco, Inc. Class B.................... 1,300 31,931
OIL (INTERNATIONAL INTEGRATED)--0.2%
Exxon Mobil Corp........................ 400 31,425
PAPER & FOREST PRODUCTS--0.1%
Westvaco Corp........................... 1,000 24,813
PERSONAL CARE--0.4%
Estee Lauder Cos., Inc. (The) Class A... 600 29,663
Gillette Co. (The)...................... 900 31,444
-----------
61,107
-----------
POWER PRODUCERS (INDEPENDENT)--0.5%
AES Corp. (The)(b)...................... 2,000 91,250
PUBLISHING--0.4%
McGraw-Hill Cos., Inc. (The)............ 1,200 64,800
PUBLISHING (NEWSPAPERS)--0.7%
New York Times Co. (The) Class A........ 1,900 75,050
Tribune Co.............................. 1,100 38,500
-----------
113,550
-----------
RAILROADS--0.2%
Kansas City Southern Industries, Inc.... 400 35,475
REITS--0.2%
Equity Residential Properties Trust..... 700 32,200
RETAIL (BUILDING SUPPLIES)--0.7%
Fastenal Co............................. 1,000 50,625
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C> <C>
RETAIL (BUILDING SUPPLIES)--CONTINUED
Home Depot, Inc. (The).................. 1,600 $ 79,900
-----------
130,525
-----------
RETAIL (COMPUTERS & ELECTRONICS)--0.9%
Best Buy Co., Inc.(b)................... 500 31,625
CDW Computer Centers, Inc.(b)........... 1,600 100,000
RadioShack Corp......................... 600 28,425
-----------
160,050
-----------
RETAIL (DEPARTMENT STORES)--0.6%
Kohl's Corp.(b)......................... 1,900 105,688
RETAIL (DISCOUNTERS)--0.3%
Family Dollar Stores, Inc............... 3,100 60,644
RETAIL (FOOD CHAINS)--0.2%
Kroger Co. (The)(b)..................... 1,600 35,300
RETAIL (GENERAL MERCHANDISE)--0.9%
Wal-Mart Stores, Inc.................... 2,800 161,350
RETAIL (SPECIALTY)--0.7%
Bed Bath & Beyond, Inc.(b).............. 1,300 47,125
Tiffany & Co............................ 1,100 74,250
-----------
121,375
-----------
SERVICES (ADVERTISING/MARKETING)--0.7%
Interpublic Group of Cos., Inc. (The)... 2,100 90,300
Omnicom Group, Inc...................... 400 35,625
-----------
125,925
-----------
SERVICES (COMMERCIAL & CONSUMER)--1.0%
Cintas Corp............................. 900 33,019
Diamond Technology Partners, Inc. (b)... 300 26,400
Dun & Bradstreet Corp. (The)............ 1,000 28,625
Gemstar International Group Ltd. (b).... 1,300 79,889
Macrovision Corp.(b).................... 200 12,784
-----------
180,717
-----------
SERVICES (COMPUTER SYSTEMS)--0.1%
Comdisco, Inc........................... 700 15,619
SERVICES (DATA PROCESSING)--2.4%
Automatic Data Processing, Inc.......... 2,500 133,906
Concord EFS, Inc.(b).................... 2,300 59,800
National Computer Systems, Inc.......... 400 19,700
</TABLE>
See Notes to Financial Statements 39
<PAGE>
Phoenix-Zweig Growth & Income Fund
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C> <C>
SERVICES (DATA PROCESSING)--CONTINUED
Paychex, Inc............................ 4,900 $ 205,800
-----------
419,206
-----------
SERVICES (EMPLOYMENT)--0.3%
Manpower, Inc........................... 300 9,600
Robert Half International, Inc.(b)...... 1,200 34,200
-----------
43,800
-----------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.1%
Powerwave Technologies, Inc.(b)......... 400 17,600
TELECOMMUNICATIONS (LONG DISTANCE)--0.4%
Time Warner Telecom, Inc. Class A(b).... 1,000 64,375
Williams Communications Group,
Inc.(b)................................. 400 13,275
-----------
77,650
-----------
TELEPHONE--0.4%
BellSouth Corp.......................... 1,400 59,675
CenturyTel, Inc......................... 500 14,375
-----------
74,050
-----------
TOBACCO--0.7%
Philip Morris Cos., Inc................. 2,200 58,438
R.J. Reynolds Tobacco Holdings, Inc..... 2,100 58,669
-----------
117,107
-----------
TRUCKERS--0.5%
C.H. Robinson Worldwide, Inc............ 1,700 84,150
TRUCKS & PARTS--0.2%
PACCAR, Inc.(b)......................... 900 35,719
- -----------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $10,411,796) 10,941,879
- -----------------------------------------------------------------
FOREIGN COMMON STOCKS--5.9%
ALUMINUM--0.2%
Alcan Aluminum Ltd. (Canada)............ 900 27,900
BIOTECHNOLOGY--0.2%
BioChem Pharma, Inc. (Canada)(b)........ 1,300 32,012
COMMUNICATIONS EQUIPMENT--0.9%
Alcatel ADR (France).................... 500 33,250
Nokia Oyj ADR (Finland)................. 600 29,962
Nortel Networks Corp. (Canada).......... 1,100 75,075
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C> <C>
COMMUNICATIONS EQUIPMENT--CONTINUED
Telefonaktiebolaget LM Ericsson AB ADR
(Sweden)................................ 900 $ 18,000
-----------
156,287
-----------
COMPUTERS (SOFTWARE & SERVICES)--0.9%
Business Objects SA Sponsored ADR
(France)(b)............................. 300 26,437
Infosys Technologies Ltd. Sponsored ADR
(India)................................. 600 106,350
SAP AG ADR (Germany).................... 700 32,856
-----------
165,643
-----------
ELECTRONICS (SEMICONDUCTORS)--0.8%
ARM Holdings PLC Sponsored ADR (United
Kingdom)(b)............................. 800 26,300
STMicroelectronics NV NY Shares
(France)................................ 1,700 109,119
-----------
135,419
-----------
ENTERTAINMENT--0.2%
News Corp. Ltd. (The) ADR (Australia)... 600 32,700
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--1.0%
AstraZeneca Group PLC ADR (United
Kingdom)................................ 1,200 55,800
Shire Pharmaceuticals Group PLC ADR
(United Kingdom)(b)..................... 400 20,750
Teva Pharmaceutical Industries Ltd. ADR
(Israel)................................ 1,900 105,331
-----------
181,881
-----------
METALS MINING--0.1%
Inco Ltd. (Canada)(b)................... 600 9,225
OIL (INTERNATIONAL INTEGRATED)--0.2%
Shell Transport & Trading Co. ADR
(United Kingdom)........................ 600 29,963
RAILROADS--0.2%
Canadian Pacific Ltd. (Canada).......... 1,600 41,900
RETAIL (FOOD CHAINS)--0.2%
Koninklijke Ahold NV ADR
(Netherlands)........................... 1,100 32,244
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.1%
Vodafone AirTouch PLC ADR (United
Kingdom)................................ 600 24,863
TELECOMMUNICATIONS (LONG DISTANCE)--0.7%
COLT Telecom Group PLC Sponsored ADR
(United Kingdom)(b)..................... 200 27,125
Cable & Wireless PLC ADR (United
Kingdom)................................ 800 40,050
</TABLE>
40 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Growth & Income Fund
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C> <C>
TELECOMMUNICATIONS (LONG DISTANCE)--CONTINUED
Sonera Oyj ADR (Finland)................ 700 $ 32,200
Telefonos de Mexico SA de C.V. ADR
Series L (Mexico)....................... 500 28,563
-----------
127,938
-----------
TEXTILES (SPECIALTY)--0.2%
Gucci Group (Netherlands)............... 400 37,900
- -----------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $1,039,205) 1,035,875
- -----------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--68.2%
(IDENTIFIED COST $11,451,001) 11,977,754
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
------ -----------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--32.5%
U.S. GOVERNMENT SECURITIES--0.3%
U.S. Treasury Bill 5.32%, 7/27/00(c).... $ 50 $ 49,808
FEDERAL AGENCY SECURITIES--22.8%
Freddie Mac 6.35% 7/5/00................ 4,000 3,997,178
REPURCHASE AGREEMENT--9.4%
Morgan Stanley & Co., Inc. repurchase
agreement, 6.72%, dated 6/30/00 due
7/3/00, repurchase price $1,655,927,
collateralized by Fannie Mae Bond 5.50%,
6/1/13, market value $1,705,941......... 1,655 1,655,000
- -----------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $5,701,986) 5,701,986
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--100.7%
(IDENTIFIED COST $17,152,987) 17,679,740(a)
Cash and receivables, less liabilities--(0.7%) (126,697)
-----------
NET ASSETS--100.0% $17,553,043
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $1,351,394 and gross
depreciation of $889,701 for federal income tax purposes. At June 30, 2000,
the aggregate cost of securities for federal income tax purposes was
$17,218,047.
(b) Non-income producing.
(c) All or a portion segregated as collateral.
See Notes to Financial Statements 41
<PAGE>
Phoenix-Zweig Growth & Income Fund
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $17,152,987) $ 17,679,740
Cash 3,017
Receivables
Dividends and interest 9,504
Fund shares sold 5,038
Deferred organization expenses 246
Prepaid expenses 7,223
--------------
Total assets 17,704,768
--------------
LIABILITIES
Payables
Fund shares repurchased 85,110
Distribution fee 11,678
Investment advisory fee 11,112
Transfer agent fee 7,763
Variation margin for futures contracts 2,525
Financial agent fee 1,696
Trustees' fee 1,037
Accrued expenses 30,804
--------------
Total liabilities 151,725
--------------
NET ASSETS $ 17,553,043
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 15,984,536
Undistributed net investment loss (2,207)
Accumulated net realized gain 1,042,861
Net unrealized appreciation 527,853
--------------
NET ASSETS $ 17,553,043
==============
CLASS A
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $2,572,247) 195,724
Net asset value per share $13.14
Offering price per share $13.14/(1-5.75%) $13.94
CLASS B
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $8,542,754) 650,067
Net asset value and offering price per share $13.14
CLASS C
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $4,500,460) 342,068
Net asset value and offering price per share $13.16
CLASS I
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $1,937,582) 146,880
Net asset value and offering price per share $13.19
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 256,041
Dividends 50,697
Foreign taxes withheld (456)
--------------
Total investment income 306,282
--------------
EXPENSES
Investment advisory fee 70,541
Distribution fee, Class A 4,335
Distribution fee, Class B 45,298
Distribution fee, Class C 24,647
Financial agent fee 6,584
Transfer agent 28,807
Custodian 23,067
Registration 15,738
Professional 11,850
Printing 8,773
Trustees 3,207
Amortization of deferred organization expenses 2,563
Miscellaneous 5,837
--------------
Total expenses 251,247
--------------
NET INVESTMENT INCOME 55,035
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 1,630,493
Net realized gain on futures contracts 36,369
Net change in unrealized appreciation (depreciation) on
investments (141,326)
--------------
NET GAIN ON INVESTMENTS 1,525,536
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,580,571
==============
</TABLE>
42 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Growth & Income Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/00 Year Ended
(Unaudited) 12/31/99
----------- ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 55,035 $ 231,452
Net realized gain (loss) 1,666,862 1,277,181
Net change in unrealized appreciation
(depreciation) (141,326) (1,869,768)
----------- ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,580,571 (361,135)
----------- ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (10,468) (66,509)
Net investment income, Class B (13,664) (85,176)
Net investment income, Class C (5,503) (39,823)
Net investment income, Class I (10,493) (35,875)
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 (40,128) (2,102,645)
----------- ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (3,676
and 20,588 shares, respectively) 48,805 271,536
Net asset value of shares issued from
reinvestment of distributions
(653 and 29,156 shares,
respectively) 8,524 345,397
Cost of shares repurchased (88,261 and
380,081 shares, respectively) (1,115,632) (4,983,646)
----------- ------------
Total (1,058,303) (4,366,713)
----------- ------------
CLASS B
Proceeds from sales of shares (43,905
and 52,764 shares, respectively) 560,829 684,195
Net asset value of shares issued from
reinvestment of distributions
(773 and 66,723 shares,
respectively) 10,106 782,620
Cost of shares repurchased (192,162
and 547,967 shares, respectively) (2,454,542) (7,095,775)
----------- ------------
Total (1,883,607) (5,628,960)
----------- ------------
CLASS C
Proceeds from sales of shares (11,224
and 71,824 shares, respectively) 153,063 919,029
Net asset value of shares issued from
reinvestment of distributions
(374 and 45,958 shares,
respectively) 4,888 538,304
Cost of shares repurchased (122,613
and 738,676 shares, respectively) (1,571,446) (9,519,002)
----------- ------------
Total (1,413,495) (8,061,669)
----------- ------------
CLASS I
Proceeds from sales of shares (0 and
17,995 shares, respectively) -- 228,000
Net asset value of shares issued from
reinvestment of distributions
(800 and 16,206 shares,
respectively) 10,493 192,711
Cost of shares repurchased (5,729 and
6,202 shares, respectively) (75,000) (83,117)
----------- ------------
Total (64,507) 337,594
----------- ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (4,419,912) (17,719,748)
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS (2,879,469) (20,183,528)
NET ASSETS
Beginning of period 20,432,512 40,616,040
----------- ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) AND
DISTRIBUTIONS IN EXCESS OF NET
INVESTMENT INCOME OF ($2,207) AND
($17,114), RESPECTIVELY] $17,553,043 $ 20,432,512
=========== ============
</TABLE>
See Notes to Financial Statements 43
<PAGE>
Phoenix-Zweig Growth & Income Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED DECEMBER 31 INCEPTION
6/30/00 -------------------------------- 11/26/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.13 $13.40 $13.73 $11.37 $11.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.08 0.17(6) 0.11 0.24 0.01
Net realized and unrealized gain (loss) 0.98 (0.08) (0.33) 2.36 0.03
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 1.06 0.09 (0.22) 2.60 0.04
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.05) (0.21) (0.11) (0.24) (0.01)
Dividends from net realized gains -- (1.15) -- -- --
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (0.05) (1.36) (0.11) (0.24) (0.01)
------ ------ ------ ------ ------
Change in net asset value 1.01 (1.27) (0.33) 2.36 0.03
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $13.14 $12.13 $13.40 $13.73 $11.37
====== ====== ====== ====== ======
Total return(1) 8.77%(3) 1.09% (1.61)% 23.12% 0.39%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $2,572 $3,393 $8,172 $6,836 $2,508
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.16%(2) 1.80% 1.56%(4) 1.30%(4) 1.30%(2)(4)
Net investment income 1.09%(2) 1.28% 0.82% 2.26% 1.47%(2)
Portfolio turnover 145%(3) 193% 152% 120% 2%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED DECEMBER 31 INCEPTION
6/30/00 ---------------------------------- 11/26/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.14 $13.39 $ 13.73 $ 11.37 $11.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.02 0.08(6) 0.02 0.16 0.01
Net realized and unrealized gain (loss) 1.00 (0.08) (0.34) 2.36 0.03
------ ------ ------- ------- ------
TOTAL FROM INVESTMENT OPERATIONS 1.02 0.00 (0.32) 2.52 0.04
------ ------ ------- ------- ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.02) (0.10) (0.02) (0.16) (0.01)
Dividends from net realized gains -- (1.15) -- -- --
------ ------ ------- ------- ------
TOTAL DISTRIBUTIONS (0.02) (1.25) (0.02) (0.16) (0.01)
------ ------ ------- ------- ------
Change in net asset value 1.00 (1.25) (0.34) 2.36 0.03
------ ------ ------- ------- ------
NET ASSET VALUE, END OF PERIOD $13.14 $12.14 $ 13.39 $ 13.73 $11.37
====== ====== ======= ======= ======
Total return(1) 8.40%(3) 0.42% (2.33)% 22.29% 0.33%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $8,543 $9,684 $16,416 $11,920 $2,693
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.89%(2) 2.51% 2.26%(5) 2.00%(5) 2.00%(2)(5)
Net investment income 0.37%(2) 0.64% 0.12% 1.56% 0.77%(2)
Portfolio turnover 145%(3) 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.
44 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
----------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED DECEMBER 31 INCEPTION
6/30/00 ---------------------------------- 11/26/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.15 $13.37 $ 13.71 $ 11.38 $11.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.03 0.08(6) 0.02 0.17 0.01
Net realized and unrealized gain (loss) 1.00 (0.07) (0.34) 2.33 0.04
------ ------ ------- ------- ------
TOTAL FROM INVESTMENT OPERATIONS 1.03 0.01 (0.32) 2.50 0.05
------ ------ ------- ------- ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.02) (0.08) (0.02) (0.17) (0.01)
Dividends from net realized gains -- (1.15) -- -- --
------ ------ ------- ------- ------
TOTAL DISTRIBUTIONS (0.02) (1.23) (0.02) (0.17) (0.01)
------ ------ ------- ------- ------
Change in net asset value 1.01 (1.22) (0.34) 2.33 0.04
------ ------ ------- ------- ------
NET ASSET VALUE, END OF PERIOD $13.16 $12.15 $ 13.37 $ 13.71 $11.38
====== ====== ======= ======= ======
Total return(1) 8.36%(3) 0.45% (2.34)% 22.15% 0.42%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $4,500 $5,507 $14,364 $13,525 $4,509
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.87%(2) 2.50% 2.26%(4) 2.00%(4) 2.00%(2)(4)
Net investment income 0.38%(2) 0.60% 0.12% 1.56% 0.77%(2)
Portfolio turnover 145%(3) 193% 152% 120% 2%
</TABLE>
<TABLE>
<CAPTION>
CLASS I
--------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED DECEMBER 31 INCEPTION
6/30/00 -------------------------------- 11/26/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.18 $13.44 $13.77 $11.37 $11.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.09 0.23(6) 0.15 0.24 0.02
Net realized and unrealized gain (loss) 0.99 (0.09) (0.33) 2.40 0.03
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 1.08 0.14 (0.18) 2.64 0.05
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.07) (0.25) (0.15) (0.24) (0.02)
Dividends from net realized gains -- (1.15) -- -- --
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (0.07) (1.40) (0.15) (0.24) (0.02)
------ ------ ------ ------ ------
Change in net asset value 1.01 (1.26) (0.33) 2.40 0.03
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $13.19 $12.18 $13.44 $13.77 $11.37
====== ====== ====== ====== ======
Total return(1) 8.87%(3) 1.46% (1.31)% 23.42% 0.41%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,938 $1,848 $1,664 $1,686 $101
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.90%(2) 1.54% 1.26%(5) 1.00%(5) 1.00%(2)(5)
Net investment income 1.36%(2) 1.72% 1.12% 2.56% 1.77%(2)
Portfolio turnover 145%(3) 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 45
<PAGE>
PHOENIX-ZWEIG MANAGED ASSETS
INVESTMENTS AT JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--21.1%
UNITED STATES--21.1%
3Com Corp. (Computers
(Networking))(b)........................ 4,000 $ 230,500
ADC Telecommunications, Inc.
(Communications Equipment)(b)........... 18,000 1,509,750
AFLAC, Inc. (Insurance (Life/Health))... 6,000 275,625
AT&T Corp. (Telecommunications (Long
Distance)).............................. 24,000 759,000
AXA Financial, Inc. (Investment Banking/
Brokerage).............................. 8,000 272,000
Abbott Laboratories (Health Care
(Diversified)).......................... 10,000 445,625
Aetna, Inc. (Health Care (Managed
Care)).................................. 10,000 641,875
Agilent Technologies, Inc. (Electronics
(Instrumentation))(b)................... 5,721 421,924
Alcoa, Inc. (Aluminum).................. 14,000 406,000
America Online, Inc. (Computers
(Software & Services))(b)............... 7,000 369,250
Amgen, Inc. (Biotechnology)(b).......... 7,000 491,750
Analog Devices, Inc. (Electronics
(Semiconductors))(b).................... 4,000 304,000
Anheuser-Busch Cos., Inc. (Beverages
(Alcoholic))............................ 5,000 373,437
Applied Materials, Inc. (Equipment
(Semiconductors))(b).................... 9,000 815,625
Bard (C.R.), Inc. (Health Care (Medical
Products & Supplies))................... 21,000 1,010,625
Bell Atlantic Corp. (Telephone)......... 20,720 1,052,835
BellSouth Corp. (Telephone)............. 19,000 809,875
Biogen, Inc. (Biotechnology)(b)......... 8,000 516,000
Boeing Co. (The) (Aerospace/Defense).... 25,000 1,045,312
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
UNITED STATES--CONTINUED
Burlington Northern Santa Fe Corp.
(Railroads)............................. 9,000 $ 206,438
CIGNA Corp. (Insurance (Multi-Line)).... 12,000 1,122,000
CNF Transportation, Inc. (Air
Freight)................................ 9,000 204,750
Cardinal Health, Inc. (Distributors
(Food & Health))........................ 16,000 1,184,000
Chase Manhattan Corp. (The) (Banks
(Money Center))......................... 48,000 2,211,000
Chevron Corp. (Oil (International
Integrated))............................ 10,000 848,125
Chiron Corp. (Biotechnology)(b)......... 7,000 332,500
Cisco Systems, Inc. (Computers
(Networking))(b)........................ 30,000 1,906,875
Citigroup, Inc. (Financial
(Diversified)).......................... 26,000 1,566,500
Clorox Co. (The) (Household Products
(Non-Durable)).......................... 15,000 672,188
Coastal Corp. (The) (Natural Gas)....... 26,000 1,582,750
Colgate-Palmolive Co. (Household
Products (Non-Durable))................. 13,000 778,375
Comcast Corp. Special Class A
(Broadcasting (Television, Radio &
Cable))(b).............................. 13,000 526,500
Compaq Computer Corp. (Computers
(Hardware))............................. 22,000 562,375
Computer Sciences Corp. (Services
(Computer Systems))(b).................. 4,000 298,750
ConAgra, Inc. (Foods)................... 27,000 514,688
Cooper Industries, Inc. (Electrical
Equipment).............................. 16,000 521,000
Dell Computer Corp. (Computers
(Hardware))(b).......................... 20,000 986,250
Diamond Offshore Drilling, Inc. (Oil &
Gas (Drilling & Equipment))............. 29,000 1,018,625
</TABLE>
46 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Managed Assets
<TABLE>
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
UNITED STATES--CONTINUED
Dow Chemical Co. (The) (Chemicals)...... 33,000 $ 996,187
Eaton Corp. (Manufacturing
(Diversified)).......................... 7,000 469,000
eBay, Inc. (Computers (Software &
Services))(b)........................... 7,000 380,187
Edison International (Electric
Companies).............................. 16,000 328,000
El Paso Energy Corp. (Natural Gas)...... 8,000 407,500
Entergy Corp. (Electric Companies)...... 13,000 353,438
Exxon Mobil Corp. (Oil (International
Integrated))............................ 12,000 942,750
Fannie Mae (Financial (Diversified)).... 13,000 678,438
Federated Department Stores, Inc.
(Retail (Department Stores))(b)......... 56,000 1,890,000
First Data Corp. (Services (Data
Processing))............................ 8,000 397,000
FleetBoston Financial Corp. (Banks
(Major Regional))....................... 27,000 918,000
Ford Motor Co. (Automobiles)............ 3,000 129,000
General Electric Co. (Electrical
Equipment).............................. 48,000 2,544,000
General Motors Corp. (Automobiles)...... 7,000 406,437
Georgia-Pacific Group (Paper & Forest
Products)............................... 18,000 472,500
Harrah's Entertainment, Inc. (Gaming,
Lottery & Pari-mutuel Companies)(b)..... 10,000 209,375
Hewlett-Packard Co. (Computers
(Hardware))............................. 15,000 1,873,125
Home Depot, Inc. (The) (Retail (Building
Supplies)).............................. 10,000 499,375
Household International, Inc. (Consumer
Finance)................................ 12,599 523,646
Infinity Broadcasting Corp. Class A
(Broadcasting (Television, Radio &
Cable))(b).............................. 8,000 291,500
Ingersoll-Rand Co. (Machinery
(Diversified)).......................... 6,000 241,500
Intel Corp. (Electronics
(Semiconductors))....................... 28,000 3,743,250
International Business Machines Corp.
(Computers (Hardware)).................. 21,000 2,300,812
Johnson & Johnson (Health Care
(Diversified)).......................... 9,000 916,875
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
UNITED STATES--CONTINUED
KLA-Tencor Corp. (Equipment
(Semiconductors))(b).................... 7,000 $ 409,938
Kimberly-Clark Corp. (Household Products
(Non-Durable)).......................... 4,000 229,500
Kmart Corp. (Retail (General
Merchandise))(b)........................ 40,000 272,500
Limited, Inc. (The) (Retail
(Specialty-Apparel)).................... 20,000 432,500
Lucent Technologies, Inc.
(Communications Equipment).............. 26,000 1,540,500
MBNA Corp. (Consumer Finance)........... 27,000 732,375
MGIC Investment Corp. (Insurance
(Property-Casualty)).................... 7,000 318,500
Merck & Co., Inc. (Health Care
(Drugs-Major Pharmaceuticals)).......... 47,000 3,601,375
Microsoft Corp. (Computers (Software &
Services))(b)........................... 10,000 800,000
Minnesota Mining and Manufacturing Co.
(Manufacturing (Diversified))........... 13,000 1,072,500
Morgan (J.P.) & Co., Inc. (Banks (Money
Center))................................ 2,000 220,250
Morgan Stanley Dean Witter & Co.
(Financial (Diversified))............... 10,000 832,500
Motorola, Inc. (Communications
Equipment).............................. 15,000 435,937
NIKE, Inc. Class B (Footwear)........... 7,000 278,688
Network Appliance, Inc. (Computers
(Networking))(b)........................ 8,000 644,000
Oracle Corp. (Computers (Software &
Services))(b)........................... 42,000 3,530,625
PNC Financial Services Group (Banks
(Major Regional))....................... 29,000 1,359,375
PepsiCo, Inc. (Beverages
(Non-Alcoholic))........................ 39,000 1,733,062
Pfizer, Inc. (Health Care (Drugs-Major
Pharmaceuticals))....................... 21,000 1,008,000
Philip Morris Cos., Inc. (Tobacco)...... 21,000 557,813
</TABLE>
See Notes to Financial Statements 47
<PAGE>
Phoenix-Zweig Managed Assets
<TABLE>
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
UNITED STATES--CONTINUED
Phillips Petroleum Co. (Oil (Domestic
Integrated))............................ 23,000 $ 1,165,813
Procter & Gamble Co. (The) (Household
Products (Non-Durable))................. 10,000 572,500
Providian Financial Corp. (Consumer
Finance)................................ 10,000 900,000
QUALCOMM, Inc. (Communications
Equipment)(b)........................... 6,000 360,000
SBC Communications, Inc. (Telephone).... 40,796 1,764,427
Schering-Plough Corp. (Health Care
(Drugs-Major Pharmaceuticals)).......... 34,000 1,717,000
Scientific-Atlanta, Inc. (Communications
Equipment).............................. 22,000 1,639,000
Siebel Systems, Inc. (Computers
(Software & Services))(b)............... 3,000 490,687
Solectron Corp. (Electrical
Equipment)(b)........................... 14,000 586,250
Sprint Corp. (PCS Group)
(Telecommunications
(Cellular/Wireless))(b)................. 10,000 595,000
Sun Microsystems, Inc. (Computers
(Hardware))(b).......................... 15,000 1,364,062
Sycamore Networks, Inc. (Communications
Equipment)(b)........................... 2,000 220,750
TJX Cos., Inc. (The) (Retail (Specialty-
Apparel))............................... 26,000 487,500
Tellabs, Inc. (Communications
Equipment)(b)........................... 5,000 342,187
Tenet Healthcare Corp. (Health Care
(Hospital Management))(b)............... 19,000 513,000
Teradyne, Inc. (Equipment
(Semiconductors))(b).................... 9,000 661,500
Texaco, Inc. (Oil (International
Integrated))............................ 23,000 1,224,750
Texas Instruments, Inc. (Electronics
(Semiconductors))....................... 10,000 686,875
Transocean Sedco Forex, Inc. (Oil & Gas
(Drilling & Equipment))................. 15,000 801,563
Tricon Global Restaurants, Inc.
(Restaurants)(b)........................ 14,000 395,500
Tupperware Corp. (Housewares)........... 15,000 330,000
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
UNITED STATES--CONTINUED
Tyco International Ltd. (Manufacturing
(Diversified)).......................... 6,000 $ 284,250
U S West, Inc. (Telephone).............. 17,000 1,457,750
United States Cellular Corp.
(Telecommunications
(Cellular/Wireless))(b)................. 18,000 1,134,000
UnitedHealth Group, Inc. (Health Care
(Managed Care))......................... 5,000 428,750
UtiliCorp United, Inc. (Electric
Companies).............................. 15,000 298,125
Visteon Corp. (Auto Parts &
Equipment)(b)........................... 392 4,753
Walt Disney Co. (The) (Entertainment)... 23,000 892,688
WorldCom, Inc. (Telecommunications (Long
Distance))(b)........................... 28,000 1,284,500
Yahoo!, Inc. (Computers (Software &
Services))(b)........................... 3,000 371,625
- --------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $75,607,991) 93,691,335
- --------------------------------------------------------------------------
FOREIGN COMMON STOCKS--21.6%
AUSTRALIA--2.2%
Brambles Industries Ltd. (Services
(Commercial & Consumer))................ 47,600 1,467,183
Broken Hill Proprietary Co. Ltd.
(Manufacturing (Diversified))........... 165,700 1,964,920
Cable & Wireless Optus Ltd.
(Telephone)(b).......................... 519,000 1,551,858
Commonwealth Bank of Australia (Banks
(Major Regional))....................... 115,000 1,911,948
News Corp. Ltd. (The) (Broadcasting
(Television, Radio & Cable))............ 204,500 2,824,077
------------
9,719,986
------------
CANADA--0.1%
Barrick Gold Corp. (Canada) (Gold &
Precious Metals Mining)................. 11,000 200,063
FINLAND--1.8%
Metso Oyj (Machinery (Diversified))..... 4,500 54,352
Nokia Oyj (Communications Equipment).... 141,600 7,255,100
</TABLE>
48 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Managed Assets
<TABLE>
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
FINLAND--CONTINUED
Sampo Insurance Co. Ltd. Class A
(Insurance (Property-Casualty))......... 2,100 $ 85,554
Sonera Oyj (Telephone).................. 10,400 476,035
Tietoenator Oyj (Services (Data
Processing))............................ 2,200 73,706
UPM-Kymmene Oyj (Paper & Forest
Products)............................... 8,500 211,848
------------
8,156,595
------------
FRANCE--3.0%
Air Liquide SA (Chemicals
(Specialty))............................ 1,811 237,138
Alcatel (Communications Equipment)...... 14,888 980,450
Aventis SA (Chemicals (Diversified)).... 11,335 830,676
Axa (Insurance (Multi-Line))............ 4,455 704,635
BNP Paribas (Banks (Major Regional)).... 9,150 884,126
Carrefour SA (Retail (Food Chains))..... 3,700 253,949
Compagnie de Saint-Gobain (Manufacturing
(Diversified)).......................... 3,001 407,344
France Telecom SA (Telephone)........... 15,049 2,111,938
L'Oreal SA (Household Products (Non-
Durable))............................... 1,587 1,379,802
LVMH (Beverages (Alcoholic))............ 1,044 432,231
STMicroelectronics NV (Electronics
(Semiconductors))....................... 12,973 820,761
Schneider Electric SA (Electrical
Equipment).............................. 5,776 404,187
Simco SA Registered Shares (Financial
(Diversified)).......................... 6,600 483,992
Total Fina Elf SA (Oil & Gas (Refining &
Marketing))............................. 13,157 2,025,512
Vivendi SA (Manufacturing
(Diversified)).......................... 14,034 1,243,715
------------
13,200,456
------------
GERMANY--3.0%
Allianz AG Vinkulierte Registered Shares
(Insurance (Multi-Line))................ 5,250 1,912,385
Bayer AG (Chemicals (Diversified))...... 39,700 1,552,684
Bayerische Hypo- und Vereinsbank AG
(Banks (Major Regional))................ 6,250 407,999
DaimlerChrysler AG (Automobiles)........ 20,160 1,061,917
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
GERMANY--CONTINUED
Deutsche Bank AG Registered Shares
(Banks (Major Regional))................ 8,700 $ 720,552
Deutsche Telekom AG Registered Shares
(Telephone)............................. 44,700 2,553,796
Dresdner Bank Registered Shares AG
(Banks (Major Regional))................ 16,500 686,446
E.On AG (Manufacturing (Diversified))... 9,360 461,181
Karstadtquelle AG (Retail (Department
Stores))................................ 7,500 200,585
Muenchener
Rueckversicherungs-Gesellschaft AG
Registered Shares (Insurance
(Multi-Line))........................... 300 94,613
RWE AG (Manufacturing (Diversified)).... 19,550 659,663
SAP AG (Computers (Software &
Services)).............................. 1,700 255,033
Siemens AG Registered Shares
(Electronics (Component
Distributors)).......................... 16,200 2,445,840
Volkswagen AG (Automobiles)............. 6,800 260,736
------------
13,273,430
------------
ITALY--1.9%
Assicurazioni Generali (Insurance
(Life/Health)).......................... 29,198 1,004,801
Banca Intesa SPA (Banks (Major
Regional)).............................. 63,000 283,234
Benetton Group SPA (Textiles
(Apparel)).............................. 96,617 202,829
Enel SPA (Electric Companies)........... 154,067 685,267
Eni SPA (Oil (Domestic Integrated))..... 162,307 941,293
Fiat SPA (Automobiles).................. 10,156 264,609
Mediaset SPA (Broadcasting (Television,
Radio & Cable))......................... 36,087 553,482
Mediobanca-Banca di Credito Finanziario
SPA (Banks (Major Regional))............ 17,635 182,571
Pirelli SPA (Auto Parts & Equipment).... 103,067 272,191
Riunione Adriatica di Sicurta SPA
(Insurance (Multi-Line))................ 26,416 291,204
San Paolo-IMI SPA (Banks (Major
Regional)).............................. 31,472 560,836
Sirti SPA (Engineering &
Construction)........................... 19,582 32,756
Snia SPA (Manufacturing
(Diversified)).......................... 31,550 31,574
Telecom Italia Mobile SPA
(Telecommunications
(Cellular/Wireless)).................... 144,316 1,480,235
Telecom Italia SPA (Telephone).......... 84,595 1,167,722
</TABLE>
See Notes to Financial Statements 49
<PAGE>
Phoenix-Zweig Managed Assets
<TABLE>
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
ITALY--CONTINUED
UniCredito Italiano SPA (Banks (Major
Regional)).............................. 134,443 $ 645,667
------------
8,600,271
------------
JAPAN--4.2%
Acom Co., Ltd. (Consumer Finance)....... 3,600 303,512
Aiful Corp. (Consumer Finance).......... 5,260 486,220
Ajinomoto Co., Inc. (Foods)............. 9,000 115,688
Asahi Bank Ltd. (The) (Banks (Major
Regional)).............................. 26,000 109,601
Asahi Chemical Industry Co., Ltd.
(Chemicals (Specialty))................. 19,000 134,686
Asahi Glass Co., Ltd. (Chemicals
(Specialty))............................ 9,000 100,802
Bank of Tokyo-Mitsubishi Ltd. (The)
(Banks (Major Regional))................ 45,000 544,841
Bridgestone Corp. (Auto Parts &
Equipment).............................. 8,000 169,752
Canon, Inc. (Office Equipment &
Supplies)............................... 12,000 598,857
Daiwa Securities Group, Inc. (Investment
Banking/Brokerage)...................... 24,000 317,576
Denso Corp. (Auto Parts & Equipment).... 10,000 243,853
East Japan Railway Co. (Railroads)...... 32 186,311
Fanuc Ltd. (Machinery (Diversified)).... 2,800 285,554
Fuji Bank Ltd. (The) (Banks (Major
Regional)).............................. 35,000 266,631
Fuji Photo Film Co., Ltd. (Photography/
Imaging)................................ 14,000 574,283
Fujikura Ltd. (Electrical Equipment).... 2,000 13,327
Fujitsu Ltd. (Computers (Hardware))..... 14,000 485,626
Hitachi Ltd. (Electronics (Component
Distributors)).......................... 44,000 636,286
Honda Motor Co., Ltd. (Automobiles)..... 10,000 341,205
Industrial Bank of Japan Ltd. (The)
(Banks (Major Regional))................ 33,000 250,771
Ito-Yokado Co., Ltd. (Retail (Food
Chains))................................ 3,000 180,905
Kansai Electric Power Co., Inc. (The)
(Electric Companies).................... 10,500 188,362
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
JAPAN--CONTINUED
Keio Electric Railway Co., Ltd. (Retail
(Department Stores)).................... 62,000 $ 237,331
Kinki Nippon Railway Co., Ltd.
(Railroads)............................. 29,000 117,862
Kirin Brewery Co., Ltd. (Beverages
(Alcoholic))............................ 15,000 187,852
Kuraray Co., Ltd. (Chemicals
(Specialty))............................ 16,000 183,892
Kyocera Corp. (Electronics (Component
Distributors)).......................... 2,800 476,099
Kyowa Hakko Kogyo Co., Ltd. (Health Care
(Diversified)).......................... 3,000 29,404
Marui Co., Ltd. (Retail (Department
Stores))................................ 4,000 76,748
Matsushita Electric Industrial Co., Ltd.
(Electronics (Component
Distributors)).......................... 16,000 415,873
Minebea Co., Ltd. (Machinery
(Diversified)).......................... 17,000 213,702
Mitsubishi Chemical Corp. (Chemicals
(Specialty))............................ 38,000 156,236
Mitsubishi Corp. (Distributors (Food &
Health))................................ 18,000 163,155
Mitsubishi Heavy Industries Ltd.
(Machinery (Diversified))............... 26,000 115,499
Mitsui & Co., Ltd. (Distributors (Food &
Health))................................ 29,000 222,020
Murata Manufacturing Co., Ltd.
(Electronics (Component
Distributors)).......................... 4,000 575,417
NGK Insulators Ltd. (Electrical
Equipment).............................. 9,000 111,775
Nichiro Corp. (Foods)................... 18,000 32,155
Nippon Flour Mills Co., Ltd. (Foods).... 4,000 10,737
Nippon Steel Corp. (Iron & Steel)....... 125,000 263,465
Nippon Telegraph & Telephone Corp.
(Telephone)............................. 1,000 1,332,684
Nippon Yusen Kabushiki Kaisha
(Shipping).............................. 37,000 178,353
Nissan Motor Co., Ltd.
(Automobiles)(b)........................ 22,000 129,960
Nisshin Flour Milling Co., Ltd.
(Agricultural Products)................. 19,000 190,356
Obayashi Corp. (Engineering &
Construction)........................... 16,000 70,925
Oji Paper Co., Ltd. (Paper & Forest
Products)............................... 15,000 103,496
Osaka Gas Co., Ltd. (Natural Gas)....... 4,000 11,531
</TABLE>
50 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Managed Assets
<TABLE>
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
JAPAN--CONTINUED
Promise Co., Ltd. (Consumer Finance).... 1,800 $ 142,569
Rohm Co., Ltd. (Electronics
(Semiconductors))....................... 1,000 293,002
Sakura Bank Ltd. (The) (Banks (Major
Regional)).............................. 41,000 284,051
Sankyo Co., Ltd. (Health Care
(Drugs-Major Pharmaceuticals)).......... 4,000 90,547
Sanwa Bank Ltd. (The) (Banks (Major
Regional)).............................. 2,000 15,992
Sanyo Electric Co., Ltd. (Electronics
(Component Distributors))............... 18,000 162,304
Shinagawa Refractories Co., Ltd.
(Construction (Cement & Aggregates)).... 12,000 26,313
Shin-Etsu Chemical Co., Ltd. (Chemicals
(Specialty))............................ 7,000 355,950
Shizuoka Bank Ltd. (The) (Banks (Major
Regional)).............................. 5,000 42,532
Sony Corp. (Household Furnishings &
Appliances)............................. 11,500 1,076,072
Sumitomo Bank Ltd. (The) (Banks (Major
Regional)).............................. 26,000 319,466
Sumitomo Chemical Co., Ltd. (Chemicals
(Specialty))............................ 9,000 54,271
Sumitomo Electric Industries Ltd.
(Electrical Equipment).................. 13,000 223,381
Takeda Chemical Industries, Ltd. (Health
Care (Drugs-Major Pharmaceuticals))..... 18,000 1,184,104
Takefuji Corp. (Consumer Finance)....... 1,700 205,829
Toa Corp. (Engineering &
Construction)........................... 1,000 1,257
Toho Zinc Co., Ltd. (Metals Mining)..... 6,000 12,533
Tokai Bank Ltd. (The) (Banks (Major
Regional)).............................. 22,000 108,751
Tokyo Electric Power Co., Inc. (The)
(Electric Companies).................... 800 19,546
Toppan Printing Co., Ltd. (Specialty
Printing)............................... 13,000 137,862
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
JAPAN--CONTINUED
Toray Industries, Inc. (Textiles (Home
Furnishings))........................... 25,000 $ 101,605
Toyoda Automatic Loom Works, Ltd. (Auto
Parts & Equipment)...................... 4,000 86,766
Toyota Motor Corp. (Automobiles)........ 26,000 1,186,940
Yamanouchi Pharmaceutical Co., Ltd.
(Health Care (Diversified))............. 6,000 328,351
------------
18,601,170
------------
SPAIN--1.6%
Acerinox SA (Iron & Steel).............. 2,214 64,306
Altadis SA (Tobacco).................... 11,003 169,707
Autopistas, Concesionaria Espanola SA
Registered Shares (Services (Commercial
& Consumer))............................ 8,684 75,835
Banco Bilbao Vizcaya Argentaria SA
(Banks (Major Regional))................ 85,696 1,285,604
Banco Santander Central Hispano SA
(Banks (Major Regional))................ 121,166 1,283,440
Corporacion Financiera Alba, SA
(Financial (Diversified))............... 2,443 64,635
Corporacion Mapfre (Insurance (Property-
Casualty)).............................. 3,300 41,978
Empresa Nacional de Electricidad SA
(Electric Companies).................... 31,241 607,630
Fomento de Construcciones y Contratas SA
(Engineering & Construction)............ 5,393 102,359
Gas Natural SDG, SA (Natural Gas)....... 12,346 222,493
Grupo Dragados SA (Engineering &
Construction)........................... 8,703 62,653
Iberdrola SA (Electric Companies)....... 30,043 388,785
Repsol YPF SA (Oil & Gas (Refining &
Marketing))............................. 34,697 693,474
Sociedad General de Aguas de Barcelona,
SA (Water Utilities).................... 7,372 98,934
Telefonica SA (Telephone)(b)............ 88,396 1,906,547
</TABLE>
See Notes to Financial Statements 51
<PAGE>
Phoenix-Zweig Managed Assets
<TABLE>
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
SPAIN--CONTINUED
Union Electrica Fenosa, SA (Electric
Companies).............................. 7,464 $ 135,586
------------
7,203,966
------------
SWEDEN--1.3%
ForeningsSparbanken AB (Banks (Major
Regional)).............................. 16,100 236,799
Hennes & Mauritz AB Class B (Retail
(Specialty-Apparel)).................... 25,600 537,060
Skandia Forsakrings AB (Insurance (Life/
Health))................................ 30,800 818,222
Svenska Handelsbanken AB Class A (Banks
(Major Regional))....................... 21,500 313,771
Telefonaktiebolaget LM Ericsson AB Class
B (Communications Equipment)............ 198,000 3,939,357
------------
5,845,209
------------
UNITED KINGDOM--2.5%
Abbey National PLC (Financial
(Diversified)).......................... 22,572 269,955
Allied Zurich PLC (Financial
(Diversified)).......................... 25,950 307,016
BAA PLC (Services (Commercial &
Consumer)).............................. 4,734 37,984
BOC Group PLC (Chemicals (Specialty))... 16,077 231,219
BP Amoco PLC (Oil (Domestic
Integrated))............................ 123,200 1,182,481
Bass PLC (Beverages (Alcoholic))........ 20,927 235,391
Boots Co. PLC (Retail (Drug Stores)).... 16,015 121,952
British American Tobacco PLC
(Tobacco)............................... 33,350 222,653
British Telecommunications PLC
(Telephone)............................. 85,577 1,106,393
Cadbury Schweppes PLC (Foods)........... 29,336 192,746
Caradon PLC (Building Materials)........ 11,340 25,923
De La Rue PLC (Office Equipment &
Supplies)............................... 250 1,319
Glaxo Wellcome PLC (Health Care (Drugs-
Major Pharmaceuticals))................. 25,934 756,564
Great Universal Stores PLC (The) (Retail
(Home Shopping))........................ 15,800 101,658
HSBC Holdings PLC (Financial
(Diversified)).......................... 66,485 760,418
Hanson PLC (Construction (Cement &
Aggregates))............................ 10,121 71,554
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
UNITED KINGDOM--CONTINUED
Hilton Group PLC (Gaming, Lottery &
Pari-mutuel Companies).................. 18,800 $ 66,030
Imperial Chemical Industries PLC
(Chemicals (Diversified))............... 23,700 188,186
Invensys PLC (Machinery
(Diversified)).......................... 45,200 169,701
Kingfisher PLC (Retail (Specialty))..... 7,396 67,348
Lloyds TSB Group PLC (Financial
(Diversified)).......................... 37,157 351,010
Marks & Spencer PLC (Retail (Department
Stores))................................ 35,964 126,450
National Power PLC (Electric
Companies).............................. 13,500 86,042
Prudential PLC (Insurance
(Life/Health)).......................... 28,048 411,028
RMC Group PLC (Construction (Cement &
Aggregates))............................ 8,500 109,636
Railtrack Group PLC (Railroads)......... 8,800 136,753
Rank Group PLC (Entertainment).......... 10,000 22,935
Reed International PLC (Publishing)..... 30,816 268,249
Royal Bank of Scotland Group PLC (Banks
(Major Regional))....................... 11,488 192,351
ScottishPower PLC (Electric
Companies).............................. 19,200 162,773
SmithKline Beecham PLC (Health Care
(Drugs-Major Pharmaceuticals)).......... 42,422 555,522
South African Breweries PLC (Beverages
(Alcoholic))............................ 20,000 149,268
TI Group PLC (Manufacturing
(Diversified)).......................... 7,485 40,397
Tesco PLC (Retail (Food Chains))........ 49,884 155,191
Unilever PLC (Foods).................... 38,075 230,565
United Biscuits (Holdings) PLC
(Foods)................................. 29,511 118,392
Vodafone AirTouch PLC
(Telecommunications
(Cellular/Wireless)).................... 474,665 1,918,637
Wolseley PLC (Distributors (Food &
Health))................................ 9,436 51,926
------------
11,203,616
------------
- --------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $64,162,823) 96,004,762
- --------------------------------------------------------------------------
</TABLE>
52 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Managed Assets
<TABLE>
<CAPTION>
SHARES VALUE
-------------- ------------
<S> <C> <C> <C>
FOREIGN PREFERRED STOCKS--0.1%
GERMANY--0.1%
SAP AG (Computers (Software &
Services)).............................. 1,300 $ 241,383
ITALY--0.0%
Fiat SPA - (Automobiles)................ 7,403 120,994
- --------------------------------------------------------------------------
TOTAL FOREIGN PREFERRED STOCKS
(IDENTIFIED COST $379,008) 362,377
- --------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000)
--------- -------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--18.3%
U.S. TREASURY BONDS--3.8%
U.S. Treasury Bonds 6.375%, 8/15/27..... AAA $ 9,600 9,873,005
U.S. Treasury Bonds 6.25%, 5/15/30...... AAA 6,700 7,032,910
------------
16,905,915
------------
U.S. TREASURY NOTES--14.5%
U.S. Treasury Inflationary Notes 3.625%,
1/15/08(d).............................. AAA 12,345 11,971,062
U.S. Treasury Notes 10.75%, 5/15/03..... AAA 7,000 7,787,500
U.S. Treasury Notes 7.50%, 2/15/05...... AAA 7,100 7,446,125
U.S. Treasury Notes 6.125%, 8/15/07..... AAA 21,000 20,875,323
U.S. Treasuty Notes 6.50%, 2/15/10...... AAA 15,500 16,003,317
------------
64,083,327
------------
- --------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES
(IDENTIFIED COST $81,505,193) 80,989,242
- --------------------------------------------------------------------------
AGENCY MORTGAGE-BACKED SECURITIES--4.6%
Freddie Mac 5.125%, 10/15/08............ Aaa(c) 5,100 4,440,835
Freddie Mac 6.875%, 1/15/05............. Aaa(c) 16,000 15,901,472
- --------------------------------------------------------------------------
TOTAL AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $20,751,620) 20,342,307
- --------------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--8.9%
FRANCE--1.9%
Government of France 5.50%, 10/25/07.... AAA 8,507(f) 8,252,238
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
GERMANY--1.8%
Deutschland Republic 6%, 7/4/07......... AAA 7,848(f) $ 7,864,129
NEW ZEALAND--1.1%
Government of New Zealand 7%, 7/15/09... AAA 10,000(g) 4,773,313
SPAIN--1.6%
Government of Spain 6%, 1/31/08......... AA+ 7,332(f) 7,212,051
SWEDEN--1.4%
Government of Sweden 9%, 4/20/09........ AAA 44,000(h) 6,304,933
UNITED KINGDOM--1.1%
UK Treasury 7.25%, 12/7/07.............. AAA 1,200(i) 2,010,507
UK Treasury 8.50%, 7/16/07.............. AAA 1,600(i) 2,838,362
------------
4,848,869
------------
- --------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(IDENTIFIED COST $44,400,269) 39,255,533
- --------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--74.6%
(IDENTIFIED COST $286,806,904) 330,645,556
- --------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS--23.8%
U.S. GOVERNMENT SECURITIES--0.5%
U.S. Treasury Bill 5.61%, 9/21/00....... 2,000 1,974,932
FEDERAL AGENCY SECURITIES--6.7%
Fannie Mae Discount Note 6.41%,
7/13/00................................. 5,000 4,989,316
Freddie Mac Discount Note 6.43%,
7/18/00................................. 15,000 14,954,455
Freddie Mac Discount Note 6.425%,
8/15/00................................. 10,000 9,919,688
------------
29,863,459
------------
REPURCHASE AGREEMENT--16.6%
Morgan Stanley & Co., Inc. repurchase
agreement, 6.72%, dated 6/30/00 due
7/3/00, repurchase price $40,786,828,
collateralized by Fannie Mae Bonds 5.50%
to 7.50%, 1/1/14 to 9/1/29, market value
$41,990,046(e).......................... 40,764 40,764,000
</TABLE>
See Notes to Financial Statements 53
<PAGE>
Phoenix-Zweig Managed Assets
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
------- ------------
<S> <C> <C> <C>
REPURCHASE AGREEMENT--CONTINUED
Prudential Securities, Inc. repurchase
agreement, 6.80%, dated 6/30/00 due
7/3/00, repurchase price $33,018,700,
collateralized by Fannie Mae Bond 6.49%,
6/7/01 and U.S. Treasury Note 5.625%,
5/15/08, market value $33,660,836....... $33,000 $ 33,000,000
------------
73,764,000
------------
- --------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $105,601,902) 105,602,391
- --------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--98.4%
(IDENTIFIED COST $392,408,806) 436,247,947(a)
Cash and receivables, less liabilities--1.6% 7,234,123
------------
NET ASSETS--100.0% $443,482,070
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $57,785,358 and gross
depreciation of $13,867,978 for federal income tax purposes. At June 30,
2000, the aggregate cost of securities for federal income tax purposes was
$392,330,567.
(b) Non-income producing.
(c) As rated by Moody's, 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 Euro.
(g) Par value represents New Zealand Dollar.
(h) Par value represents Swedish Krona.
(i) Par value represents British Pound.
54 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Managed Assets
INDUSTRY DIVERSIFICATION
AS A PERCENTAGE OF TOTAL VALUE OF
TOTAL LONG-TERM INVESTMENTS
(UNAUDITED)
<TABLE>
<S> <C>
Aerospace/Defense....................... 0.3%
Agency Mortgage-Backed Securities....... 1.4
Agricultural Products................... 0.1
Air Freight............................. 0.1
Aluminum................................ 0.1
Auto Parts & Equipment.................. 0.2
Automobiles............................. 1.2
Banks (Major Regional).................. 4.4
Banks (Money Center).................... 0.8
Beverages (Alcoholic)................... 0.4
Beverages (Non-Alcoholic)............... 0.6
Biotechnology........................... 0.4
Broadcasting (Television, Radio &
Cable).................................. 1.3
Chemicals............................... 0.3
Chemicals (Diversified)................. 0.8
Chemicals (Specialty)................... 0.5
Communications Equipment................ 5.8
Computers (Hardware).................... 2.4
Computers (Networking).................. 0.9
Computers (Software & Services)......... 2.0
Construction (Cement & Aggregates)...... 0.1
Consumer Finance........................ 1.0
Distributors (Food & Health)............ 0.5
Electric Companies...................... 1.0
Electrical Equipment.................... 1.4
Electronics (Component Distributors).... 1.5
Electronics (Instrumentation)........... 0.1
Electronics (Semiconductors)............ 1.9
Engineering & Construction.............. 0.1
Entertainment........................... 0.3
Equipment (Semiconductors).............. 0.6
Financial (Diversified)................. 1.7
Foods................................... 0.4
Footwear................................ 0.1
Foreign Government Securities........... 12.5
Gaming, Lottery & Pari-Mutuel
Companies............................... 0.1
Gold & Precious Metals Mining........... 0.1
Health Care (Diversified)............... 0.5
Health Care (Drugs-Major
Pharmaceuticals)........................ 2.8
Health Care (Hospital Management)....... 0.2
Health Care (Managed Care).............. 0.3%
Health Care (Medical Products &
Supplies)............................... 0.3
Household Furnishings & Appliances...... 0.3
Household Products (Non-Durable)........ 1.2
Housewares.............................. 0.1
Insurance (Life/Health)................. 0.8
Insurance (Multi-Line).................. 1.3
Insurance (Property-Casualty)........... 0.1
Investment Banking/Brokerage............ 0.2
Iron & Steel............................ 0.1
Machinery (Diversified)................. 0.3
Manufacturing (Diversified)............. 2.1
Natural Gas............................. 0.7
Office Equipment & Supplies............. 0.2
Oil & Gas (Drilling & Equipment)........ 0.6
Oil & Gas (Refining & Marketing)........ 0.9
Oil (Domestic Integrated)............... 1.0
Oil (International Integrated).......... 1.0
Paper & Forest Products................. 0.3
Photography/Imaging..................... 0.2
Publishing.............................. 0.1
Railroads............................... 0.2
Restaurants............................. 0.1
Retail (Building Supplies).............. 0.2
Retail (Department Stores).............. 0.8
Retail (Food Chains).................... 0.2
Retail (General Merchandise)............ 0.1
Retail (Specialty-Apparel).............. 0.5
Services (Commercial & Consumer)........ 0.5
Services (Computer Systems)............. 0.1
Services (Data Processing).............. 0.2
Shipping................................ 0.1
Telecommunications
(Cellular/Wireless)..................... 1.6
Telecommunications (Long Distance)...... 0.7
Telephone............................... 5.5
Textiles (Apparel)...................... 0.1
Tobacco................................. 0.3
U.S. Government Securities.............. 25.8
------
100.0%
======
</TABLE>
55
<PAGE>
Phoenix-Zweig Managed Assets
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value, exclusive of repurchase
agreements (Identified cost $318,644,806) $ 362,483,947
Repurchase agreements, at value
(Identified cost $73,764,000) 73,764,000
Foreign currency at value
(Identified cost $2,120,473) 2,155,509
Gross unrealized appreciation on forward foreign currency
contracts 322,281
Receivables
Investment securities sold 9,999,311
Dividends and interest 3,639,322
Tax reclaims 312,766
Fund shares sold 109,855
Prepaid expenses 3,685
--------------
Total assets 452,790,676
--------------
LIABILITIES
Payables
Custodian 685,509
Investment securities purchased 6,617,612
Fund shares repurchased 1,003,775
Investment advisory fee 370,291
Distribution fee 316,092
Transfer agent fee 121,818
Financial agent fee 11,328
Trustees' fee 3,566
Accrued expenses 178,615
--------------
Total liabilities 9,308,606
--------------
NET ASSETS $ 443,482,070
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 348,118,154
Undistributed net investment income 4,440,746
Accumulated net realized gain 46,941,931
Net unrealized appreciation 43,981,239
--------------
NET ASSETS $ 443,482,070
==============
CLASS A
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $87,619,892) 6,263,008
Net asset value per share $13.99
Offering price per share $13.99/(1-5.75%) $14.84
CLASS B
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $35,078,372) 2,490,510
Net asset value and offering price per share $14.08
CLASS C
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $317,921,333) 22,937,408
Net asset value and offering price per share $13.86
CLASS I
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $2,862,473) 202,461
Net asset value and offering price per share $14.14
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 8,917,215
Dividends 1,483,449
Foreign taxes withheld (64,699)
--------------
Total investment income 10,335,965
--------------
EXPENSES
Investment advisory fee 2,372,757
Distribution fee, Class A 142,458
Distribution fee, Class B 182,936
Distribution fee, Class C 1,701,665
Financial agent fee 75,941
Transfer agent 251,859
Custodian 65,662
Printing 59,773
Professional 35,360
Registration 28,372
Trustees 11,267
Miscellaneous 13,816
--------------
Total expenses 4,941,866
--------------
NET INVESTMENT INCOME 5,394,099
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 33,222,971
Net realized gain on futures contracts 521,172
Net realized loss on foreign currency transactions (1,531,056)
Net change in unrealized appreciation (depreciation) on
investments (36,565,010)
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions (98,044)
--------------
NET LOSS ON INVESTMENTS (4,449,967)
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 944,132
==============
</TABLE>
56 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Managed Assets
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/00 Year Ended
(Unaudited) 12/31/99
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 5,394,099 $ 8,795,131
Net realized gain (loss) 32,213,087 51,456,579
Net change in unrealized appreciation
(depreciation) (36,663,054) (16,852,519)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 944,132 43,399,191
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (915,207) (1,851,319)
Net investment income, Class B (267,082) (394,535)
Net investment income, Class C (2,450,023) (3,891,210)
Net investment income, Class I (32,029) (42,069)
Net realized gains, Class A -- (7,665,272)
Net realized gains, Class B -- (2,960,138)
Net realized gains, Class C -- (28,568,205)
Net realized gains, Class I -- (160,910)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (3,664,341) (45,533,658)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(3,899,904 and 980,240 shares,
respectively) 54,235,662 14,230,772
Net asset value of shares issued from
reinvestment of distributions
(55,896 and 625,401 shares,
respectively) 779,774 8,719,828
Cost of shares repurchased (5,048,205
and 2,859,688 shares, respectively) (70,289,405) (41,487,644)
------------ ------------
Total (15,273,969) (18,537,044)
------------ ------------
CLASS B
Proceeds from sales of shares (315,755
and 1,214,074 shares, respectively) 4,418,635 17,632,149
Net asset value of shares issued from
reinvestment of distributions
(13,192 and 215,090 shares,
respectively) 185,344 3,004,893
Cost of shares repurchased (659,629
and 931,411 shares, respectively) (9,214,491) (13,617,868)
------------ ------------
Total (4,610,512) 7,019,174
------------ ------------
CLASS C
Proceeds from sales of shares (318,028
and 1,700,748 shares, respectively) 4,407,418 24,316,042
Net asset value of shares issued from
reinvestment of distributions
(134,540 and 2,145,927 shares,
respectively) 1,859,330 29,524,085
Cost of shares repurchased (4,770,580
and 7,126,846 shares, respectively) (65,663,239) (102,491,448)
------------ ------------
Total (59,396,491) (48,651,321)
------------ ------------
CLASS I
Proceeds from sales of shares (47,085
and 20,802 shares, respectively) 656,941 298,135
Net asset value of shares issued from
reinvestment of distributions
(2,272 and 14,394 shares,
respectively) 32,029 202,973
Cost of shares repurchased (3,043 and
8,200 shares, respectively) (42,559) (120,305)
------------ ------------
Total 646,411 380,803
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (78,634,561) (59,788,388)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (81,354,770) (61,922,855)
NET ASSETS
Beginning of period 524,836,840 586,759,695
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$4,440,746 AND $2,710,988,
RESPECTIVELY] $443,482,070 $524,836,840
============ ============
</TABLE>
See Notes to Financial Statements 57
<PAGE>
Phoenix-Zweig Managed Assets
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/00 --------------------------------------
(UNAUDITED) 1999 1998 1997
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.04 $ 14.18 $ 12.72 $ 12.75
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.19(4) 0.31(4) 0.38(5) 0.13(5)
Net realized and unrealized gain (loss) (0.10) 0.91 1.50 1.83
------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 0.09 1.22 1.88 1.96
------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment income (0.14) (0.25) (0.38) --
Dividends from net realized gains -- (1.11) (0.04) (1.99)
------- -------- -------- --------
TOTAL DISTRIBUTIONS (0.14) (1.36) (0.42) (1.99)
------- -------- -------- --------
Change in net asset value (0.05) (0.14) 1.46 (0.03)
------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 13.99 $ 14.04 $ 14.18 $ 12.72
======= ======== ======== ========
Total return(1) 0.67%(3) 8.81% 14.87% 15.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $87,620 $103,267 $122,085 $110,908
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.53%(2) 1.51% 1.51% 1.59%
Net investment income 2.83%(2) 2.13% 2.77%(5) 2.40%(5)
Portfolio turnover 56%(3) 50% 62% 168%
<CAPTION>
CLASS A
-----------------------
YEAR ENDED DECEMBER 31
-----------------------
1996 1995
<S> <C> <C>
Net asset value, beginning of period $ 12.48 $ 11.76
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.35(5) 0.47(5)
Net realized and unrealized gain (loss) 0.86 1.40
-------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.21 1.87
-------- --------
LESS DISTRIBUTIONS
Dividends from net investment income (0.45) (0.75)
Dividends from net realized gains (0.49) (0.40)
-------- --------
TOTAL DISTRIBUTIONS (0.94) (1.15)
-------- --------
Change in net asset value 0.27 0.72
-------- --------
NET ASSET VALUE, END OF PERIOD $ 12.75 $ 12.48
======== ========
Total return(1) 9.80% 16.26%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $114,837 $141,110
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.64% 1.59%
Net investment income 2.64%(5) 3.69%(5)
Portfolio turnover 187% 239%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED DECEMBER 31 INCEPTION
6/30/00 ----------------------------------- 4/8/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.15 $ 14.28 $ 12.79 $ 12.90 $ 12.43
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.15(4) 0.21(4) 0.26(5) 0.04(5) 0.13(5)
Net realized and unrealized gain (loss) (0.11) 0.91 1.53 1.84 1.00
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.04 1.12 1.79 1.88 1.13
------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.11) (0.14) (0.26) -- (0.17)
Dividends from net realized gains -- (1.11) (0.04) (1.99) (0.49)
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS (0.11) (1.25) (0.30) (1.99) (0.66)
------- ------- ------- ------- -------
Change in net asset value (0.07) (0.13) 1.49 (0.11) 0.47
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 14.08 $ 14.15 $ 14.28 $ 12.79 $ 12.90
======= ======= ======= ======= =======
Total return(1) 0.26%(3) 8.03% 14.06% 14.67% 9.11%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $35,078 $39,910 $33,172 $18,117 $6,339
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.23%(2) 2.21% 2.21% 2.29% 2.34%(2)
Net investment income 2.13%(2) 1.44% 2.07%(5) 1.70%(5) 1.94%(2)(5)
Portfolio turnover 56%(3) 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.
58 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 C
--------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/00 --------------------------------------
(UNAUDITED) 1999 1998 1997
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.92 $ 14.07 $ 12.63 $ 12.76
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.15(4) 0.21(4) 0.29(5) 0.04(5)
Net realized and unrealized gain (loss) (0.10) 0.89 1.48 1.82
-------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 0.05 1.10 1.77 1.86
-------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment income (0.11) (0.14) (0.29) --
Dividends from net realized gains -- (1.11) (0.04) (1.99)
-------- -------- -------- --------
TOTAL DISTRIBUTIONS (0.11) (1.25) (0.33) (1.99)
-------- -------- -------- --------
Change in net asset value (0.06) (0.15) 1.44 (0.13)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 13.86 $ 13.92 $ 14.07 $ 12.63
======== ======== ======== ========
Total return(1) 0.34%(3) 8.01% 14.03% 14.67%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $317,921 $379,445 $429,655 $407,625
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.23%(2) 2.21% 2.21% 2.29%
Net investment income 2.13%(2) 1.43% 2.07%(5) 1.70%(5)
Portfolio turnover 56%(3) 50% 62% 168%
<CAPTION>
CLASS C
-----------------------
YEAR ENDED DECEMBER 31
-----------------------
1996 1995
<S> <C> <C>
Net asset value, beginning of period $ 12.49 $ 11.73
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.27(5) 0.38(5)
Net realized and unrealized gain (loss) 0.85 1.40
-------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.12 1.78
-------- --------
LESS DISTRIBUTIONS
Dividends from net investment income (0.36) (0.62)
Dividends from net realized gains (0.49) (0.40)
-------- --------
TOTAL DISTRIBUTIONS (0.85) (1.02)
-------- --------
Change in net asset value 0.27 0.76
-------- --------
NET ASSET VALUE, END OF PERIOD $ 12.76 $ 12.49
======== ========
Total return(1) 9.03% 15.44%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $426,194 $527,432
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.34% 2.29%
Net investment income 1.94%(5) 2.99%(5)
Portfolio turnover 187% 239%
</TABLE>
<TABLE>
<CAPTION>
CLASS I
-------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED DECEMBER 31 INCEPTION
6/30/00 -------------------------------- 11/1/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.18 $14.31 $13.05 $12.99 $13.02
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.23(4) 0.36(4) 0.56(5) 0.09(5) 0.05(5)
Net realized and unrealized gain (loss) (0.11) 0.91 1.41 1.96 0.45
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.12 1.27 1.97 2.05 0.50
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.16) (0.29) (0.67) -- (0.04)
Dividends from net realized gains -- (1.11) (0.04) (1.99) (0.49)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (0.16) (1.40) (0.71) (1.99) (0.53)
------ ------ ------ ------ ------
Change in net asset value (0.04) (0.13) 1.26 0.06 (0.03)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $14.14 $14.18 $14.31 $13.05 $12.99
====== ====== ====== ====== ======
Total return(1) 0.85%(3) 9.08% 15.16% 15.88% 3.83%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $2,862 $2,214 $1,848 $2,645 $2,893
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.23%(2) 1.21% 1.21% 1.29% 1.34%(2)
Net investment income 3.18%(2) 2.43% 3.07%(5) 2.70%(5) 2.94%(2)(5)
Portfolio turnover 56%(3) 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 59
<PAGE>
PHOENIX-ZWEIG STRATEGY FUND
INVESTMENTS AT JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMON STOCKS--66.4%
AEROSPACE/DEFENSE--0.9%
Boeing Co. (The)........................ 70,000 $ 2,926,875
ALUMINUM--0.3%
Alcoa, Inc.............................. 36,000 1,044,000
AUTO PARTS & EQUIPMENT--0.0%
Visteon Corp.(b)........................ 917 11,113
AUTOMOBILES--0.5%
Ford Motor Co........................... 7,000 301,000
General Motors Corp..................... 21,000 1,219,312
------------
1,520,312
------------
BANKS (MAJOR REGIONAL)--2.0%
Firstar Corp............................ 82,000 1,727,125
FleetBoston Financial Corp.............. 57,000 1,938,000
PNC Financial Services Group............ 56,000 2,625,000
------------
6,290,125
------------
BANKS (MONEY CENTER)--0.6%
Chase Manhattan Corp. (The)............. 27,900 1,285,144
Morgan (J.P.) & Co., Inc................ 5,000 550,625
------------
1,835,769
------------
BEVERAGES (ALCOHOLIC)--0.3%
Coors (Adolph) Co. Class B.............. 14,000 847,000
BEVERAGES (NON-ALCOHOLIC)--1.4%
PepsiCo, Inc............................ 97,000 4,310,437
BIOTECHNOLOGY--1.3%
Amgen, Inc.(b)(c)....................... 16,400 1,152,100
Biogen, Inc.(b)......................... 10,000 645,000
Chiron Corp.(b)......................... 46,000 2,185,000
------------
3,982,100
------------
BROADCASTING (TELEVISION, RADIO & CABLE)--0.4%
Comcast Corp. Special Class A(b)........ 16,000 648,000
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
BROADCASTING (TELEVISION, RADIO & CABLE)--CONTINUED
Infinity Broadcasting Corp. Class
A(b).................................... 19,000 $ 692,312
------------
1,340,312
------------
BUILDING MATERIALS--0.1%
USG Corp................................ 9,400 285,525
CHEMICALS (DIVERSIFIED)--0.7%
FMC Corp.(b)............................ 40,000 2,320,000
COMMUNICATIONS EQUIPMENT--4.1%
ADC Telecommunications, Inc.(b)......... 44,000 3,690,500
Lucent Technologies, Inc................ 63,000 3,732,750
Motorola, Inc........................... 63,000 1,830,937
QUALCOMM, Inc.(b)....................... 29,000 1,740,000
Sycamore Networks, Inc.(b).............. 5,000 551,875
Tellabs, Inc.(b)........................ 21,000 1,437,187
------------
12,983,249
------------
COMPUTERS (HARDWARE)--3.2%
Compaq Computer Corp.................... 57,000 1,457,062
Dell Computer Corp.(b).................. 66,000 3,254,625
International Business Machines Corp.... 16,000 1,753,000
Sun Microsystems, Inc.(b)............... 41,000 3,728,437
------------
10,193,124
------------
COMPUTERS (NETWORKING)--2.6%
3Com Corp.(b)........................... 46,000 2,650,750
Cisco Systems, Inc.(b).................. 69,000 4,385,812
Network Appliance, Inc. (b)............. 17,000 1,368,500
------------
8,405,062
------------
COMPUTERS (PERIPHERALS)--2.2%
EMC Corp.(b)............................ 56,000 4,308,500
Seagate Technology, Inc.(b)............. 48,000 2,640,000
------------
6,948,500
------------
COMPUTERS (SOFTWARE & SERVICES)--4.4%
Adobe Systems, Inc...................... 22,000 2,860,000
eBay, Inc.(b)........................... 28,000 1,520,750
Microsoft Corp.(b)...................... 53,000 4,240,000
</TABLE>
60 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Strategy Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)--CONTINUED
Oracle Corp.(b)......................... 34,000 $ 2,858,125
Siebel Systems, Inc.(b)................. 6,000 981,375
Yahoo!, Inc.(b)......................... 13,000 1,610,375
------------
14,070,625
------------
CONSUMER FINANCE--1.5%
Household International, Inc............ 7,000 290,937
MBNA Corp............................... 74,000 2,007,250
Providian Financial Corp................ 29,000 2,610,000
------------
4,908,187
------------
DISTRIBUTORS (FOOD & HEALTH)--1.1%
Cardinal Health, Inc.................... 48,000 3,552,000
ELECTRIC COMPANIES--0.8%
Edison International.................... 41,000 840,500
Entergy Corp............................ 32,000 870,000
Public Service Enterprise Group, Inc.... 21,000 727,125
------------
2,437,625
------------
ELECTRICAL EQUIPMENT--2.5%
Cooper Industries, Inc.................. 27,000 879,188
General Electric Co..................... 108,000 5,724,000
Solectron Corp.(b)...................... 32,000 1,340,000
------------
7,943,188
------------
ELECTRONICS (SEMICONDUCTORS)--2.8%
Analog Devices, Inc.(b)................. 43,200 3,283,200
Intel Corp.............................. 28,000 3,743,250
Texas Instruments, Inc.................. 26,000 1,785,875
------------
8,812,325
------------
ENTERTAINMENT--0.2%
Walt Disney Co. (The)................... 20,000 776,250
EQUIPMENT (SEMICONDUCTORS)--2.2%
Applied Materials, Inc.(b).............. 42,000 3,806,250
KLA-Tencor Corp.(b)..................... 24,000 1,405,500
Teradyne, Inc.(b)....................... 26,000 1,911,000
------------
7,122,750
------------
FINANCIAL (DIVERSIFIED)--1.8%
Citigroup, Inc.......................... 68,010 4,097,603
Fannie Mae.............................. 30,000 1,565,625
------------
5,663,228
------------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
FOODS--0.4%
ConAgra, Inc............................ 70,000 $ 1,334,375
FOOTWEAR--0.3%
NIKE, Inc. Class B...................... 21,000 836,063
HEALTH CARE (DIVERSIFIED)--1.3%
Abbott Laboratories..................... 35,000 1,559,688
Johnson & Johnson....................... 24,000 2,445,000
------------
4,004,688
------------
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--3.9%
Merck & Co., Inc........................ 80,000 6,130,000
Pfizer, Inc............................. 49,000 2,352,000
Schering-Plough Corp.................... 81,000 4,090,500
------------
12,572,500
------------
HEALTH CARE (HOSPITAL MANAGEMENT)--0.2%
Tenet Healthcare Corp.(b)............... 28,000 756,000
HEALTH CARE (MANAGED CARE)--0.8%
Aetna, Inc.............................. 21,000 1,347,938
UnitedHealth Group, Inc................. 12,000 1,029,000
------------
2,376,938
------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.3%
Baxter International, Inc............... 12,500 878,906
HOUSEHOLD PRODUCTS (NON-DURABLE)--1.8%
Clorox Co. (The)........................ 36,000 1,613,250
Colgate-Palmolive Co.................... 9,000 538,875
Kimberly-Clark Corp..................... 38,000 2,180,250
Procter & Gamble Co. (The).............. 23,000 1,316,750
------------
5,649,125
------------
HOUSEWARES--0.2%
Tupperware Corp......................... 33,000 726,000
INSURANCE (MULTI-LINE)--0.7%
CIGNA Corp.............................. 25,000 2,337,500
INSURANCE (PROPERTY-CASUALTY)--0.2%
MGIC Investment Corp.................... 16,000 728,000
INVESTMENT BANKING/BROKERAGE--1.0%
AXA Financial, Inc...................... 35,000 1,190,000
Lehman Brothers Holdings, Inc........... 10,000 945,625
</TABLE>
See Notes to Financial Statements 61
<PAGE>
Phoenix-Zweig Strategy Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
INVESTMENT BANKING/BROKERAGE--CONTINUED
Merrill Lynch & Co., Inc................ 9,000 $ 1,035,000
------------
3,170,625
------------
MACHINERY (DIVERSIFIED)--0.2%
Dover Corp.............................. 4,000 162,250
Ingersoll-Rand Co....................... 15,000 603,750
------------
766,000
------------
MANUFACTURING (DIVERSIFIED)--1.7%
Eaton Corp.............................. 25,000 1,675,000
Tyco International Ltd.................. 79,000 3,742,625
------------
5,417,625
------------
NATURAL GAS--1.4%
Coastal Corp. (The)..................... 52,000 3,165,500
Enron Corp.............................. 21,000 1,354,500
------------
4,520,000
------------
OIL & GAS (DRILLING & EQUIPMENT)--1.4%
Diamond Offshore Drilling, Inc.......... 66,000 2,318,250
Transocean Sedco Forex, Inc............. 41,000 2,190,938
------------
4,509,188
------------
OIL (DOMESTIC INTEGRATED)--1.0%
Occidental Petroleum Corp............... 41,000 863,563
USX-Marathon Group...................... 90,000 2,255,625
------------
3,119,188
------------
OIL (INTERNATIONAL INTEGRATED)--1.2%
Chevron Corp............................ 10,000 848,125
Exxon Mobil Corp........................ 19,000 1,492,688
Texaco, Inc............................. 27,000 1,437,750
------------
3,778,563
------------
PAPER & FOREST PRODUCTS--0.4%
Georgia-Pacific Group................... 51,000 1,338,750
RAILROADS--0.1%
Burlington Northern Santa Fe Corp....... 20,000 458,750
RESTAURANTS--0.2%
Tricon Global Restaurants, Inc.(b)...... 22,000 621,500
RETAIL (BUILDING SUPPLIES)--0.9%
Home Depot, Inc. (The).................. 55,000 2,746,563
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
RETAIL (COMPUTERS & ELECTRONICS)--0.6%
Best Buy Co., Inc.(b)................... 32,000 $ 2,024,000
RETAIL (GENERAL MERCHANDISE)--1.0%
Wal-Mart Stores, Inc.................... 53,000 3,054,125
RETAIL (SPECIALTY-APPAREL)--0.2%
TJX Cos., Inc. (The).................... 41,000 768,750
SERVICES (ADVERTISING/MARKETING)--0.1%
Interpublic Group of Cos., Inc. (The)... 10,000 430,000
SERVICES (DATA PROCESSING)--0.3%
First Data Corp......................... 21,000 1,042,125
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.9%
Sprint Corp. (PCS Group)(b)............. 27,000 1,606,500
United States Cellular Corp.(b)......... 20,000 1,260,000
------------
2,866,500
------------
TELECOMMUNICATIONS (LONG DISTANCE)--1.5%
AT&T Corp............................... 58,000 1,834,250
WorldCom, Inc.(b)....................... 67,000 3,073,625
------------
4,907,875
------------
TELEPHONE--3.7%
Bell Atlantic Corp...................... 30,000 1,524,375
BellSouth Corp.......................... 74,000 3,154,250
SBC Communications, Inc................. 89,000 3,849,250
U S West, Inc........................... 40,000 3,430,000
------------
11,957,875
------------
TOBACCO--0.6%
Philip Morris Cos., Inc................. 72,000 1,912,500
- --------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $194,252,103) 212,140,278
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
FOREIGN COMMON STOCKS--0.2%
GOLD & PRECIOUS METALS MINING--0.2%
Barrick Gold Corp. (Canada)............. 35,000 636,562
- --------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $637,602) 636,562
- --------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--66.6%
(IDENTIFIED COST $194,889,705) 212,776,840
- --------------------------------------------------------------------
</TABLE>
62 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Strategy Fund
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
-------- ------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--34.1%
U.S. GOVERNMENT SECURITIES--0.5%
U.S. Treasury Bill 5.51%, 8/17/00(c).... $ 500 $ 496,403
U.S. Treasury Bill 5.61%, 9/21/00....... 1,000 987,466
------------
1,483,869
------------
FEDERAL AGENCY SECURITIES--12.3%
Freddie Mac Discount Note 6.41%,
7/18/00................................. 15,000 14,954,596
Freddie Mac Discount Note 6.42%,
7/18/00................................. 14,518 14,473,986
Freddie Mac Discount Note 6.425%,
8/15/00................................. 10,000 9,919,688
------------
39,348,270
------------
REPURCHASE AGREEMENT--21.3%
Morgan Stanley & Co., Inc. repurchase
agreement, 6.72%, dated 6/30/00 due
7/3/00, repurchase price $38,190,375,
collateralized by Fannie Mae Bonds 5.50%
to 7%, 4/1/12 to 6/1/29, market value
$39,200,112............................. 38,169 38,169,000
<CAPTION>
PAR
VALUE
(000) VALUE
-------- ------------
<S> <C> <C> <C>
REPURCHASE AGREEMENT--CONTINUED
Prudential Securities, Inc. repurchase
agreement, 6.80%, dated 6/30/00 due
7/3/00, repurchase price $30,017,000
collateralized by U.S. Treasury Bond
7.50%, 11/15/16 and FHLB Discount Note
6.61%, 7/7/00, market value
$30,600,906............................. $ 30,000 $ 30,000,000
------------
68,169,000
------------
- --------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $109,000,894) 109,001,139
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--100.7%
(IDENTIFIED COST $303,890,599) 321,777,979(a)
Cash and receivables, less liabilities--(0.7%) (2,244,208)
------------
NET ASSETS--100.0% $319,533,771
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $29,518,659 and gross
depreciation of $12,548,418 for federal income tax purposes. At June 30,
2000, the aggregate cost of securities for federal income tax purposes was
$304,807,738.
(b) Non-income producing.
(c) All or a portion segregated as collateral.
See Notes to Financial Statements 63
<PAGE>
Phoenix-Zweig Strategy Fund
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value, exclusive of repurchase
agreements (Identified cost $235,721,599) $ 253,608,979
Repurchase agreements, at value
(Identified cost $68,169,000) 68,169,000
Receivables
Dividends and interest 212,274
Fund shares sold 18,234
Prepaid expenses 6,202
--------------
Total assets 322,014,689
--------------
LIABILITIES
Payables
Custodian 248,704
Fund shares repurchased 1,509,418
Investment advisory fee 202,911
Transfer agent fee 175,030
Distribution fee 173,680
Financial agent fee 11,312
Trustees' fee 4,051
Accrued expenses 155,812
--------------
Total liabilities 2,480,918
--------------
NET ASSETS $ 319,533,771
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 283,791,124
Undistributed net investment income 1,351,620
Accumulated net realized gain 16,503,647
Net unrealized appreciation 17,887,380
--------------
NET ASSETS $ 319,533,771
==============
CLASS A
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $162,122,115) 14,781,053
Net asset value price per share $10.97
Offering price per share $10.97/(1-5.75%) $11.64
CLASS B
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $33,206,518) 3,002,750
Net asset value and offering price per share $11.06
CLASS C
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $122,633,296) 11,117,117
Net asset value and offering price per share $11.03
CLASS I
Shares of beneficial interest outstanding, $0.10 par value,
unlimited authorization (Net Assets $1,571,842) 141,217
Net asset value and offering price per share $11.13
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 4,924,680
Dividends 1,186,823
Foreign taxes withheld (1,702)
--------------
Total investment income 6,109,801
--------------
EXPENSES
Investment advisory fee 1,385,476
Distribution fee, Class A 275,819
Distribution fee, Class B 193,386
Distribution fee, Class C 726,831
Financial agent fee 70,686
Transfer agent 367,510
Printing 100,305
Custodian 58,564
Professional 31,202
Registration 19,871
Trustees 9,476
Miscellaneous 15,722
--------------
Total expenses 3,254,848
--------------
NET INVESTMENT INCOME 2,854,953
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 6,069,377
Net realized gain on futures contracts 576,164
Net change in unrealized appreciation (depreciation) on
investments (15,735,967)
--------------
NET LOSS ON INVESTMENTS (9,090,426)
--------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (6,235,473)
==============
</TABLE>
64 See Notes to Financial Statements
<PAGE>
Phoenix-Zweig Strategy Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/00 Year Ended
(Unaudited) 12/31/99
------------- -------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 2,854,953 $ 7,561,097
Net realized gain (loss) 6,645,541 89,738,680
Net change in unrealized appreciation
(depreciation) (15,735,967) (87,912,801)
------------- -------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (6,235,473) 9,386,976
------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (1,998,000) (5,530,836)
Net investment income, Class B (314,378) (750,758)
Net investment income, Class C (1,149,753) (2,960,713)
Net investment income, Class I (20,800) (38,103)
Net realized gains, Class A (808,013) (56,259,519)
Net realized gains, Class B (166,428) (12,108,686)
Net realized gains, Class C (613,946) (47,943,073)
Net realized gains, Class I (7,627) (369,679)
------------- -------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (5,078,945) (125,961,367)
------------- -------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (61,321
and 22,172,492 shares, respectively) 675,132 328,411,814
Net asset value of shares issued from
reinvestment of distributions
(206,367 and 5,016,929 shares,
respectively) 2,265,901 56,137,856
Cost of shares repurchased (5,353,610
and 34,971,145 shares, respectively) (58,724,742) (514,202,909)
------------- -------------
Total (55,783,709) (129,653,239)
------------- -------------
CLASS B
Proceeds from sales of shares (57,290
and 135,743 shares, respectively) 633,433 1,978,122
Net asset value of shares issued from
reinvestment of distributions
(34,821 and 1,053,995 shares,
respectively) 385,473 11,808,517
Cost of shares repurchased (1,284,703
and 2,534,806 shares, respectively) (14,155,294) (36,739,583)
------------- -------------
Total (13,136,388) (22,952,944)
------------- -------------
CLASS C
Proceeds from sales of shares (116,154
and 347,368 shares, respectively) 1,279,754 5,067,332
Net asset value of shares issued from
reinvestment of distributions
(122,313 and 4,190,253 shares,
respectively) 1,350,331 46,828,670
Cost of shares repurchased (5,475,719
and 16,696,607 shares, respectively) (60,221,094) (242,708,801)
------------- -------------
Total (57,591,009) (190,812,799)
------------- -------------
CLASS I
Proceeds from sales of shares (0 and
13,384 shares, respectively) -- 195,000
Net asset value of shares issued from
reinvestment of distributions
(2,551 and 35,899 shares,
respectively) 28,427 407,769
Cost of shares repurchased (0 and
4,761 shares, respectively) -- (72,123)
------------- -------------
Total 28,427 530,646
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (126,482,679) (342,888,336)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS (137,797,097) (459,462,727)
NET ASSETS
Beginning of period 457,330,868 916,793,595
------------- -------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS)
OF $1,351,620 AND $1,979,598,
RESPECTIVELY] $ 319,533,771 $ 457,330,868
============= =============
</TABLE>
See Notes to Financial Statements 65
<PAGE>
Phoenix-Zweig Strategy Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/00 ------------------------------------------
(UNAUDITED) 1999 1998 1997
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 11.24 $ 14.80 $ 15.77 $ 15.01
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.10(4) 0.22(4) 0.17 0.20
Net realized and unrealized
gain (loss) (0.17) 0.07 (0.48) 2.49
-------- -------- -------- --------
TOTAL FROM INVESTMENT
OPERATIONS (0.07) 0.29 (0.31) 2.69
-------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.14) (0.28) (0.18) (0.19)
Dividends from net realized
gains (0.06) (3.57) (0.48) (1.74)
-------- -------- -------- --------
TOTAL DISTRIBUTIONS (0.20) (3.85) (0.66) (1.93)
-------- -------- -------- --------
Change in net asset value (0.27) (3.56) (0.97) 0.76
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 10.97 $ 11.24 $ 14.80 $ 15.77
======== ======== ======== ========
Total return(1) (0.79)%(3) 2.63% (1.88)% 18.07%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $162,122 $223,269 $409,065 $565,721
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.42%(2) 1.28% 1.24% 1.24%
Net investment income 1.89%(2) 1.54% 0.97% 1.20%
Portfolio turnover 105%(3) 141% 116% 126%
<CAPTION>
CLASS A
-------------------------
YEAR ENDED DECEMBER 31
-------------------------
1996 1995
<S> <C> <C>
Net asset value, beginning of
period $ 14.51 $ 12.36
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.20 0.27
Net realized and unrealized
gain (loss) 1.68 2.80
-------- --------
TOTAL FROM INVESTMENT
OPERATIONS 1.88 3.07
-------- --------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.20) (0.37)
Dividends from net realized
gains (1.18) (0.55)
-------- --------
TOTAL DISTRIBUTIONS (1.38) (0.92)
-------- --------
Change in net asset value 0.50 2.15
-------- --------
NET ASSET VALUE, END OF PERIOD $ 15.01 $ 14.51
======== ========
Total return(1) 13.00% 25.12%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $581,149 $558,286
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.28% 1.27%
Net investment income 1.27% 1.92%
Portfolio turnover 181% 95%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED DECEMBER 31 INCEPTION
6/30/00 --------------------------------------- 4/8/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 11.34 $ 14.90 $ 15.86 $ 15.07 $ 15.12
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.07(4) 0.12(4) 0.05 0.07 0.06
Net realized and unrealized
gain (loss) (0.19) 0.07 (0.48) 2.53 1.13
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS (0.12) 0.19 (0.43) 2.60 1.19
------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.10) (0.18) (0.05) (0.07) (0.06)
Dividends from net realized
gains (0.06) (3.57) (0.48) (1.74) (1.18)
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS (0.16) (3.75) (0.53) (1.81) (1.24)
------- ------- ------- ------- -------
Change in net asset value (0.28) (3.56) (0.96) 0.79 (0.05)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 11.06 $ 11.34 $ 14.90 $ 15.86 $ 15.07
======= ======= ======= ======= =======
Total return(1) (1.16)%(3) 1.91% (2.61)% 17.33% 7.88%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $33,207 $47,557 $82,531 $76,820 $42,317
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.11%(2) 1.98% 1.94% 1.94% 1.98%(2)
Net investment income 1.19%(2) 0.84% 0.27% 0.50% 0.57%(2)
Portfolio turnover 105%(3) 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.
66 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
--------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/00 ------------------------------------------
(UNAUDITED) 1999 1998 1997
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 11.31 $ 14.86 $ 15.81 $ 15.04
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.07(4) 0.12(4) 0.05 0.07
Net realized and unrealized
gain (loss) (0.19) 0.07 (0.48) 2.52
-------- -------- -------- --------
TOTAL FROM INVESTMENT
OPERATIONS (0.12) 0.19 (0.43) 2.59
-------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.10) (0.17) (0.04) (0.08)
Dividends from net realized
gains (0.06) (3.57) (0.48) (1.74)
-------- -------- -------- --------
TOTAL DISTRIBUTIONS (0.16) (3.74) (0.52) (1.82)
-------- -------- -------- --------
Change in net asset value (0.28) (3.55) (0.95) 0.77
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 11.03 $ 11.31 $ 14.86 $ 15.81
======== ======== ======== ========
Total return(1) (1.17)%(3) 1.94% (2.64)% 17.30%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $122,633 $184,924 $423,791 $591,512
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.11%(2) 1.98% 1.94% 1.94%
Net investment income 1.19%(2) 0.81% 0.27% 0.50%
Portfolio turnover 105%(3) 141% 116% 126%
<CAPTION>
CLASS C
-------------------------
YEAR ENDED DECEMBER 31
-------------------------
1996 1995
<S> <C> <C>
Net asset value, beginning of
period $ 14.56 $ 12.35
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.11 0.16
Net realized and unrealized
gain (loss) 1.66 2.82
-------- --------
TOTAL FROM INVESTMENT
OPERATIONS 1.77 2.98
-------- --------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.11) (0.22)
Dividends from net realized
gains (1.18) (0.55)
-------- --------
TOTAL DISTRIBUTIONS (1.29) (0.77)
-------- --------
Change in net asset value 0.48 2.21
-------- --------
NET ASSET VALUE, END OF PERIOD $ 15.04 $ 14.56
======== ========
Total return(1) 12.19% 24.26%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $621,334 $530,300
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.98% 1.97%
Net investment income 0.57% 1.22%
Portfolio turnover 181% 95%
</TABLE>
<TABLE>
<CAPTION>
CLASS I
---------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED DECEMBER 31 INCEPTION
6/30/00 ------------------------------------ 11/1/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $11.40 $14.94 $15.87 $15.07 $15.42
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.12(4) 0.28(4) 0.17 0.23 0.04
Net realized and unrealized
gain (loss) (0.18) 0.06 (0.45) 2.54 0.83
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT
OPERATIONS (0.06) 0.34 (0.28) 2.77 0.87
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.15) (0.31) (0.17) (0.23) (0.04)
Dividends from net realized
gains (0.06) (3.57) (0.48) (1.74) (1.18)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (0.21) (3.88) (0.65) (1.97) (1.22)
------ ------ ------ ------ ------
Change in net asset value (0.27) (3.54) (0.93) 0.80 (0.35)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $11.13 $11.40 $14.94 $15.87 $15.07
====== ====== ====== ====== ======
Total return(1) (0.66)%(3) 2.96% (1.66)% 18.52% 5.68%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $1,572 $1,581 $1,407 $1,070 $903
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.13%(2) 0.96% 0.94% 0.94% 0.98%(2)
Net investment income 2.19%(2) 1.92% 1.27% 1.50% 1.57%(2)
Portfolio turnover 105%(3) 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 67
<PAGE>
PHOENIX-ZWEIG TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
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
(with the exception of Foreign Equity Fund, for which Class I shares have been
closed) and one additional class of shares, Class M on Government Cash Fund.
Effective April 3, 2000, certain Class A shares are sold with a front-end sales
charge of up to 5.75% for all funds except Government Fund which is sold with a
front-end sales charge of up to 4.75%. Prior to that date, the maximum sales
charge for those certain Class A shares except Government Fund was 5.50%.
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. 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.
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
68
<PAGE>
PHOENIX-ZWEIG TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 (UNAUDITED) (CONTINUED)
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:
Foreign Equity Fund and Managed Assets 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.
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.
69
<PAGE>
PHOENIX-ZWEIG TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 (UNAUDITED) (CONTINUED)
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, Phoenix/ Zweig
Advisers LLC (formerly Zweig/Glaser Advisers LLC prior to May 1, 2000), 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>
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 Government Cash Fund to the extent
that total expenses (excluding taxes, interest, brokerage commissions 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 April 30, 2001.
Zweig Consulting LLC serves as the Investment Subadviser for all Funds except
Government Cash Fund.
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
$4,518 for Class A shares and deferred sales charges of $1,896 for Class A
shares, $660,899 for Class B shares and $23,767 for Class C shares for the six
months ended June 30, 2000. 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 six months ended
June 30, 2000, $1,305,245 was retained by the Distributor and $2,789,127 was
paid out to unaffiliated participants and $3,430 was paid to W.S. Griffith, an
indirect subsidiary of PHL.
PEPCO serves Financial Agent of the Trust, 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%
</TABLE>
<TABLE>
<CAPTION>
1st $100 $100-500 $500+
Million Million Million
-------- -------- -------
<S> <C> <C> <C>
Government Cash Fund.................... 0.01% 0.04% 0.01%
</TABLE>
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 six months ended June 30, 2000, transfer
agent fees were $992,070 of which PEPCO retained $250,030 which is net of fees
paid to State Street.
At June 30, 2000 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.................... 61,860,128 $61,860,128
</TABLE>
70
<PAGE>
PHOENIX-ZWEIG TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 (UNAUDITED) (CONTINUED)
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the six months ended June 30, 2000
(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....................... $136,443,667 $156,502,969
Foreign Equity Fund..................... 98,033 1,293,693
Growth & Income Fund.................... 15,396,737 16,146,481
Managed Assets.......................... 72,842,201 122,575,890
Strategy Fund........................... 220,780,066 257,674,465
</TABLE>
Purchases and sales of U.S. Government and agency securities during the six
months ended June 30, 2000 aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
------------ -----------
<S> <C> <C>
Government Fund......................... $ 37,045,308 $25,748,088
Managed Assets.......................... 102,260,281 59,044,047
</TABLE>
At June 30, 2000, 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) $(368,125) $(367,025) $1,100
</TABLE>
4. FORWARD CURRENCY CONTRACTS
As of June 30, 2000, Foreign Equity Fund had entered into the following
forward currency contracts which contractually obligate the Fund to deliver
currencies at specified dates:
<TABLE>
<CAPTION>
Net
Unrealized
Appreciation
Contracts to Deliver In Exchange For Settlement Date Value (Depreciation)
- -------------------- --------------- --------------- ------------ --------------
<S> <C> <C> <C> <C>
DKK (1,200,000)........................ US$ (154,839) 9/20/00 $ (154,508) $ 331
NOK (1,200,000)........................ US$ (139,373) 9/20/00 (140,213) (840)
JPY (115,000,000)....................... US$ (1,104,707) 9/20/00 (1,102,489) 2,218
SEK (2,000,000)........................ US$ (233,100) 9/20/00 (229,376) 3,724
CHF (280,000)......................... US$ (173,590) 9/20/00 (173,394) 196
GBP (260,000)......................... US$ (396,776) 9/20/00 (394,395) 2,381
--------
$ 8,010
========
</TABLE>
As of June 30, 2000, 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>
JPY (2,700,000,000)..................... US$ (25,936,599) 9/20/00 $(25,884,512) $ 52,087
SEK (90,000,000)....................... US$ (10,489,510) 9/20/00 (10,321,929) 167,581
GBP (11,200,000)....................... US$ (17,091,873) 9/20/00 (16,989,260) 102,613
--------
$322,281
========
</TABLE>
<TABLE>
<S> <C>
DKK=Danish Krone CHF=Swiss Franc
NOK=Norwegian Krone GBP=British Pound
JPY=Japanese Yen US=U.S. Dollar
SEK=Swedish Krona
</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 June 30, 2000, the Government Cash Fund had 1 shareholder who
individually owned more than 10% of shares outstanding which represents 45.8% 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>
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.
71
<PAGE>
Phoenix-Zweig Appreciation Fund
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
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
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
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
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
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
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
PART C--OTHER INFORMATION
ITEM 23. EXHIBITS
a. Agreement and Declaration of Trust.(9)
b. Bylaws of the Trust.(9)
c. Instruments defining shareholder rights incorporated
by reference to Exhibits a.1 and a.2 above.
d.1. Management Agreement between the Trust and
Zweig/Glaser Advisers LLC.(11)
d.2. Servicing Agreement between Zweig/Glaser Advisers LLC
and Zweig Consulting LLC(11)
e. None.
f. None.
g. Form of Custody Agreement (the "Custody Agreement")
between the Registrant and Bank of New York. (3)
h. Form of Transfer Agency Agreement (the "Transfer
Agency Agreement") between the Trust and PEPCO.(11)
i. None.
j. Consent of PricewaterhouseCoopers LLP, Independent
Public Accountant.(13)
k. None.
l.1. Subscription Agreement for Shares of the Government
Securities.(2)
l.2. Subscription Agreement for Shares of the Zweig
Strategy Fund.(4)
l.3. Subscription Agreement for Class C (f/k/a B Shares)
Shares of the Trust.(6)
l.4. Subscription Agreement for Shares of Zweig Managed
Assets.(7)
l.5. Subscription Agreement for Shares of the Zweig
Appreciation Fund.(1)
m. Distribution Plan pursuant to Rule 12b-1 as
Exhibit 15.(12)
n. Financial Data Schedules.
o. Amended and Restated Rule 18f-3 Plan as Exhibit 18
(10)
p. Codes of Ethics of the Trust, the Adviser and the
Distributor.(12)
q. Powers of Attorney for James Balog, Claire B.
Benenson, S. Leland Dill, Philip R. McLaughlin and
Donald B. Romans.(9) (12)
------------
(1) Incorporated by reference to the Trust's Registration
Statement on Form N-1A, filed previously on September
28, 1984.
(2) Incorporated by reference to Post-Effective Amendment
No. 2 to the Registration Statement of the Trust on
Form N-1A, filed previously on November 27, 1985.
(3) Incorporated by reference to Post-Effective Amendment
No. 3 to the Registration Statement of the Trust on
Form N-1A, filed previously on February 28, 1986.
(4) Incorporated by reference to Post-Effective Amendment
No. 18 to the Registration Statement of the Trust on
Form N-1A, filed previously on October 20, 1989.
(5) Incorporated by reference to Post-Effective Amendment
No. 22 to the Registration Statement of the Trust on
Form N-1A, filed previously on April 20, 1990.
(6) Incorporated by reference to Post-Effective Amendment
No. 34 to the Registration Statement of the Trust on
Form N-1A, filed previously on March 2, 1992.
C-1
<PAGE>
(7) Incorporated by reference to Post-Effective Amendment
No. 37 to the Registration Statement of the Trust on
Form N-1A, filed previously on February 26, 1993.
(8) Incorporated by reference to Post-Effective Amendment
No. 40 to the Registration Statement of the Trust on
Form N-1A, filed previously on July 5, 1995.
(9) Incorporated by reference to Post-Effective Amendment
No. 42 to the Registration Statement of the Trust on
Form N-1A, filed previously on April 30, 1996.
(10) Incorporated by reference to Post-Effective Amendment
No. 45 to the Registration Statement of the Trust on
Form N-1A, filed previously on August 20, 1997.
(11) Incorporated by reference to Post-Effective Amendment
No. 48 on Form N-1A, filed previously on May 3, 1999.
(12) Incorporated by reference to Post-Effective Amendment
No. 50 on Form N-1A filed previously on May 1, 2000.
(13) Filed herewith.
ITEM 24. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE FUND
The Fund does not control and is not under common control with any other
person.
ITEM 25. INDEMNIFICATION
The Agreement and Declaration of Trust dated April 26, 1996 and the By-Laws
of the Registrant provide that no trustee or officer will be indemnified against
any liability to which the Registrant would otherwise be subject by reason of or
for willful misfeasance, bad faith, gross negligence or reckless disregard of
such person's duties. The Management Agreement, Underwriting Agreement, Custody
Agreement and Transfer Agency Agreement each provides that the Trust will
indemnify the other party (or parties, as the case may be) to the agreement for
certain losses.
Insofar as indemnification for liability arising under the Securities Act of
1933, as amended (the "Act"), may be available to trustees, officers and
controlling persons of the Registrant pursuant to the foregoing provisions, or
otherwise, the Registrant has been advised that in the opinion of the Securities
and Exchange Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the event that a claim
for indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a trustee, officer or controlling
person of the Registrant in the successful defense of any action, suit or
proceeding) is asserted by such trustee, officer or controlling person in
connection with the securities being registered, the Registrant will, unless in
the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will
be governed by the final adjudication of such issue.
ITEM 26. BUSINESS AND OTHER CONNECTIONS OF THE INVESTMENT ADVISERS
All of the information required by this item is set forth in the Form ADV,
as currently amended, of Zweig/Glaser Advisers LLC and Zweig Consulting LLC (SEC
File Nos. 801-56470 and 801-56184), which is incorporated herein by reference.
ITEM 27. PRINCIPAL UNDERWRITER
(a) PEPCO also serves as the principal underwriter for the following other
investment companies:
Phoenix-Aberdeen Series Fund, Phoenix-Aberdeen Worldwide Opportunities Fund,
Phoenix Duff & Phelps Institutional Mutual Funds, Phoenix-Engemann Funds,
Phoenix-Euclid Funds, Phoenix Equity Series Fund, Phoenix-Goodwin California Tax
Exempt Bond Fund, Phoenix Investment Trust 97, Phoenix Multi-Portfolio Fund,
Phoenix Multi-Series Trust, Phoenix-Oakhurst Income & Growth Fund,
Phoenix-Oakhurst Strategic Allocation Fund, Phoenix-Seneca Funds, Phoenix Series
Fund, Phoenix Strategic Equity Series Fund, Phoenix Home Life Variable Universal
Life Account, Phoenix Home Life Variable Accumulation Account, PHL Variable
Accumulation Account, Phoenix Life and Annuity Variable Universal Life Account
and PHL Variable Separate Account MVA1.
C-2
<PAGE>
(b) Directors and executive officers of Phoenix Equity Planning Corporation
are as follows:
<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITIONS AND OFFICES POSITIONS AND OFFICES
BUSINESS ADDRESS WITH DISTRIBUTOR WITH REGISTRANT
---------------- ---------------- ---------------
<S> <C> <C>
Michael E. Haylon Director Executive Vice President
56 Prospect St.
P.O. Box 150480
Hartford, CT 06115-0480
Philip R. McLoughlin Director and Chairman Trustee and Chairman
56 Prospect St.
P.O. Box 150480
Hartford, CT 06115-0480
William R. Moyer Director, Executive Vice President, Executive Vice President
56 Prospect Street Chief Financial Officer and Treasurer
P.O. Box 150480
Hartford, CT 06115-0480
John F. Sharry President, Executive Vice President
56 Prospect St. Retail Division
P.O. Box 150480
Hartford, CT 06115-0480
Barry Mandinach Executive Vice President, None
900 Third Avenue Chief Marketing Officer,
New York, NY 10022 Retail Division
Robert Tousingnant Executive Vice President, None
56 Prospect Street Chief Sales Officer,
P.O. Box 150480 Retail Division
Hartford, CT 06115-0480
G. Jeffrey Bohne Senior Vice President, None
101 Munson Street Chief Mutual Fund
P.O. Box 810 Customer Service
Greenfield, MA 01302-0810
Robert S. Dreissen Vice President, Compliance Vice President
56 Prospect Street
P.O. Box 150480
Hartford, CT 06115-0480
Jacqueline M. Porter Assistant Vice President, Assistant Treasurer
56 Prospect Street Financial Reporting
P.O. Box 150480
Hartford, CT 06115-0480
</TABLE>
(c) To the best of the Registrant's knowledge, no commissions or other
compensation was received by any principal underwriter who is not an affiliated
person of the Registrant or an affiliated person of such affiliated person,
directly or indirectly, from the Registrant during the Registrant's last fiscal
year.
ITEM 28. LOCATION OF ACCOUNTS AND RECORDS
All accounts, books and other documents required to be maintained by Section
31(a) of the Investment Company Act of 1940 and the rules thereunder will be
maintained at the offices of (1) the Registrant at 900 Third Avenue, 31st Floor,
New York, New York 10022, (2) Zweig Consulting LLC, at 900 Third Avenue, New
York, New York 10022, (3) State Street Bank and Trust Company, at 1776 Heritage
Drive, North Quincy, Massachusetts 02171-2197, (4) Registrant's Transfer Agent,
Phoenix Equity Planning Corporation, at 100 Bright Meadow Boulevard, Enfield, CT
06082.
ITEM 29. MANAGEMENT SERVICES
Not applicable.
ITEM 30. UNDERTAKINGS
Not applicable.
C-3
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act and the Investment
Company Act, the Registrant certifies that it meets all of the requirements for
effectiveness of this registration statement under rule 485(b) under the
Securities Act and has duly caused this amendment to its registration statement
to be signed on its behalf by the undersigned, duly authorized, in the City of
New York, and State of New York on the 15th day of December, 2000.
PHOENIX-ZWEIG TRUST
ATTEST: BY: /S/ MARTIN E. ZWEIG
---------------------------------
/S/ PAMELA S. SINOFSKY MARTIN E. ZWEIG
--------------------------------- PRESIDENT
PAMELA S. SINOFSKY
ASSISTANT SECRETARY
Pursuant to the requirements of the Securities Act, this amendment to the
registration statement has been signed below by the following persons in the
capacities indicated, on this 15th day of December, 2000.
<TABLE>
<CAPTION>
SIGNATURE TITLE
--------- -----
<S> <C>
Trustee
---------------------------------------
James Balog*
Truste
---------------------------------------
Claire B. Benenson*
/s/ Nancy G. Curtiss Treasurer (principal financial
--------------------------------------- and accounting officer)
Nancy G. Curtiss
Trustee
---------------------------------------
S. Leland Dill*
Trustee
---------------------------------------
Philip R. McLoughlin*
Trustee
---------------------------------------
Donald B. Romans*
/s/ Martin E. Zweig President
--------------------------------------- (principal executive officer)
Martin E. Zweig
</TABLE>
*By /s/ Pamela S. Sinofsky
-------------------------------
* Pamela S. Sinofsky, Attorney-in-fact pursuant to powers of attorney
previously filed.
S-1
