<PAGE>
PHOENIX INVESTMENT PARTNERS
SEMIANNUAL REPORT
JUNE 30, 2000
Phoenix-Zweig
Appreciation Fund
Zweig
Phoenix-Zweig
Foreign Equity Fund
Phoenix-Zweig
Government Cash Fund
Phoenix-Zweig
Government Fund
Phoenix-Zweig
Growth & Income Fund
Phoenix-Zweig
Managed Assets
[LOGO] PHOENIX Phoenix-Zweig
INVESTMENT PARTNERS Strategy Fund
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
We are pleased to provide this semiannual financial summary for the
Phoenix-Zweig Funds for the six months ended June 30, 2000.
If you have any questions, please call your financial advisor or a Phoenix
customer service representative at 1-800-243-1574 between 8:00 a.m. and
6:00 p.m. Eastern Time, Monday through Friday. You can also purchase or exchange
shares, check your balance, and review your account history any time by visiting
our INVESTOR CENTER at WWW.PHOENIXINVESTMENTS.COM.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
JUNE 30, 2000
Mutual funds are not insured by the FDIC; are not
deposits or other obligations of a bank and are not
guaranteed by a bank; and are subject to
investment risks, including possible loss of the
principal invested.
1
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Phoenix-Zweig Appreciation Fund........................................... 3
Phoenix-Zweig Foreign Equity Fund......................................... 15
Phoenix-Zweig Government Cash Fund........................................ 25
Phoenix-Zweig Government Fund............................................. 31
Phoenix-Zweig Growth & Income Fund........................................ 36
Phoenix-Zweig Managed Assets.............................................. 46
Phoenix-Zweig Strategy Fund............................................... 60
Notes to Financial Statements............................................. 68
</TABLE>
2
<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 TRUST
900 Third Avenue, 31st Floor
New York, New York 10022
TRUSTEES
James Balog
Claire B. Benenson
S. Leland Dill
Donald B. Romans
OFFICERS
Philip R. McLoughlin, Chairman
Martin E. Zweig, President
Michael E. Haylon, Executive Vice President
William R. Moyer, Executive Vice President
John F. Sharry, Executive Vice President
Carlton B. Neel, Senior Vice President
Thomas N. Steenburg, Senior Vice President
Barry M. Mandinach, First Vice President
David O'Brien, Vice President
Beth Abraham, Assistant Vice President
Nancy G. Curtiss, Treasurer
Marc Baltuch, Secretary
INVESTMENT ADVISER
Phoenix/Zweig Advisers LLC
900 Third Avenue, 31st Floor
New York, New York 10022-4728
PRINCIPAL UNDERWRITER
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
TRANSFER AGENT
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
CUSTODIAN
The Bank of New York
One Wall Street
New York, New York 10286
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
HOW TO CONTACT US
The Fund Connection 1-800-243-1574
Customer Service 1-800-243-1574
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
WWW.PHOENIXINVESTMENTS.COM
<PAGE>
PRSRT STD
U.S. Postage
PAID
Andrew
Associates
PHOENIX EQUITY PLANNING CORPORATION
PO Box 2200
Enfield CT 06083-2200
[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 1329A (8/00)
