<PAGE>
PHOENIX INVESTMENT PARTNERS
JUNE 30, 1999
ENGEMANN
SEMIANNUAL REPORT
Phoenix-Engemann
Balanced Return Fund
Phoenix-Engemann
Global Growth Fund
Phoenix-Engemann
Growth Fund
Phoenix-Engemann
Nifty Fifty Fund
Phoenix-Engemann
Small & Mid-Cap
Growth Fund
Phoenix-Engemann
Value 25 Fund
[LOGO]
PHOENIX INVESTMENT PARTNERS
<PAGE>
MESSAGE FROM THE CHAIRMAN
DEAR SHAREHOLDER:
We are pleased to provide this semiannual financial summary for the
Phoenix-Engemann Funds for the six months ended June 30, 1999.
If you have any questions, please contact your financial advisor or call us at
1-800-243-1574 (option 0), between 8:00 a.m. and 6:00 p.m. Eastern Time, Monday
through Friday.
[SIGNATURE]
/s/ Philip R. McLoughlin
Chairman, Phoenix Investment Partners
JUNE 30, 1999
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-Engemann Balanced Return Fund..................................... 3
Phoenix-Engemann Global Growth Fund....................................... 10
Phoenix-Engemann Growth Fund.............................................. 18
Phoenix-Engemann Nifty Fifty Fund......................................... 25
Phoenix-Engemann Small & Mid-Cap Growth Fund.............................. 32
Phoenix-Engemann Value 25 Fund............................................ 39
Notes to Financial Statements............................................. 45
</TABLE>
2
<PAGE>
Phoenix-Engemann Balanced Return Fund
INVESTMENTS AT JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
----------- --------- -------------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--27.0%
U.S. TREASURY BONDS--13.9%
U.S. Treasury Bonds 6%,
2/15/26....................... AAA $ 17,800 $ 17,348,691
U.S. TREASURY NOTES--13.1%
U.S. Treasury Notes 6.50%,
8/15/05....................... AAA 16,000 16,451,189
- ----------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES
(IDENTIFIED COST $35,429,354) 33,799,880
- ----------------------------------------------------------------------
<CAPTION>
SHARES
---------
<S> <C> <C> <C>
COMMON STOCKS--69.3%
BANKS (MAJOR REGIONAL)--2.5%
State Street Corp............. 19,000 1,622,125
Wells Fargo Co................ 35,000 1,496,250
-------------
3,118,375
-------------
COMMUNICATIONS EQUIPMENT--6.1%
Lucent Technologies, Inc...... 50,000 3,371,875
Tellabs, Inc.(b).............. 63,000 4,256,437
-------------
7,628,312
-------------
COMPUTERS (HARDWARE)--1.0%
Sun Microsystems, Inc.(b)..... 18,000 1,239,750
COMPUTERS (NETWORKING)--3.6%
Cisco Systems, Inc.(b)........ 70,000 4,515,000
COMPUTERS (PERIPHERALS)--2.0%
EMC Corp.(b).................. 46,000 2,530,000
COMPUTERS (SOFTWARE & SERVICES)--8.0%
America Online, Inc.(b)....... 19,000 2,099,500
BMC Software, Inc.(b)......... 60,000 3,240,000
Microsoft Corp.(b)............ 52,000 4,689,750
-------------
10,029,250
-------------
CONSUMER FINANCE--0.8%
Countrywide Credit Industries,
Inc........................... 25,000 1,068,750
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C> <C>
ELECTRICAL EQUIPMENT--1.8%
General Electric Co........... 20,000 $ 2,260,000
ELECTRONICS (SEMICONDUCTORS)--6.9%
Intel Corp.................... 44,000 2,618,000
Texas Instruments, Inc........ 42,000 6,090,000
-------------
8,708,000
-------------
ENTERTAINMENT--1.6%
Walt Disney Co. (The)......... 65,000 2,002,812
FINANCIAL (DIVERSIFIED)--4.7%
American Express Co........... 11,500 1,496,437
Citigroup, Inc................ 70,500 3,348,750
Freddie Mac................... 19,000 1,102,000
-------------
5,947,187
-------------
HEALTH CARE (DIVERSIFIED)--2.5%
Warner-Lambert Co............. 45,000 3,121,875
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--5.5%
Merck & Co., Inc.............. 43,000 3,182,000
Pfizer, Inc................... 34,000 3,731,500
-------------
6,913,500
-------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--2.5%
Medtronic, Inc................ 40,000 3,115,000
INSURANCE (MULTI-LINE)--0.8%
American International Group,
Inc........................... 9,000 1,053,563
INVESTMENT BANKING/BROKERAGE--0.4%
Merrill Lynch & Co., Inc...... 7,000 559,563
LODGING-HOTELS--1.3%
Carnival Corp................. 33,000 1,600,500
PERSONAL CARE--1.8%
Avon Products, Inc............ 40,000 2,220,000
RAILROADS--1.3%
Kansas City Southern
Industries, Inc............... 25,000 1,595,313
RETAIL (BUILDING SUPPLIES)--2.9%
Home Depot, Inc. (The)........ 57,000 3,672,938
</TABLE>
See Notes to Financial Statements 3
<PAGE>
Phoenix-Engemann Balanced Return Fund
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C> <C>
RETAIL (DRUG STORES)--0.8%
Walgreen Co................... 36,000 $ 1,057,500
RETAIL (GENERAL MERCHANDISE)--2.3%
Dayton Hudson Corp............ 25,000 1,625,000
Wal-Mart Stores, Inc.......... 25,000 1,206,250
-------------
2,831,250
-------------
RETAIL (SPECIALTY)--1.7%
Staples, Inc.(b).............. 68,000 2,103,750
SERVICES (ADVERTISING/MARKETING)--1.0%
Interpublic Group of
Companies, Inc. (The)......... 14,000 1,212,750
SERVICES (COMMERCIAL & CONSUMER)--0.6%
Cendant Corp.(b).............. 38,000 779,000
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C> <C>
TELECOMMUNICATIONS (LONG DISTANCE)--4.9%
MCI WorldCom, Inc.(b)......... 71,000 $ 6,123,750
- ----------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $52,717,230) 87,007,688
- ----------------------------------------------------------------------
TOTAL INVESTMENTS--96.3%
(IDENTIFIED COST $88,146,584) 120,807,568(a)
Cash and receivables, less liabilities--3.8% 4,697,602
-------------
NET ASSETS--100.0% $ 125,505,170
-------------
-------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $34,901,705 and gross
depreciation of $2,240,721 for federal income tax purposes. At June 30,
1999, the aggregate cost of securities for federal income tax purposes was
$88,146,584.
(b) Non-income producing.
See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Balanced Return Fund
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $88,146,584) $ 120,807,568
Cash 3,101,195
Receivables
Investment securities sold 3,701,521
Dividends and interest 825,544
Fund shares sold 292,407
--------------
Total assets 128,728,235
--------------
LIABILITIES
Payables
Investment securities purchased 2,692,581
Fund shares repurchased 257,225
Distribution fee 126,739
Investment advisory fee 72,055
Administration fee 52,642
Trustees' fee 3,669
Accrued expenses 18,154
--------------
Total liabilities 3,223,065
--------------
NET ASSETS $ 125,505,170
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 81,879,842
Undistributed net investment income 169,525
Accumulated net realized gain 10,794,819
Net unrealized appreciation 32,660,984
--------------
NET ASSETS $ 125,505,170
--------------
--------------
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $92,072,766) 2,481,161
Net asset value per share $37.11
Offering price per share $37.11/(1-4.75%) $38.96
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $21,020,799) 576,056
Net asset value and offering price per share $36.49
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $12,411,605) 339,468
Net asset value and offering price per share $36.56
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 925,404
Dividends 167,074
-------------
Total investment income 1,092,478
-------------
EXPENSES
Investment advisory fee 390,014
Distribution fee, Class A 98,513
Distribution fee, Class B 79,464
Distribution fee, Class C 48,227
Administration 285,666
Professional 13,796
Trustees 7,273
-------------
Total expenses 922,953
-------------
NET INVESTMENT INCOME 169,525
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 7,792,721
Net change in unrealized appreciation (depreciation) on
investments (1,199,798)
-------------
NET GAIN ON INVESTMENTS 6,592,923
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 6,762,448
-------------
-------------
</TABLE>
See Notes to Financial Statements 5
<PAGE>
Phoenix-Engemann Balanced Return Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/99 Year Ended
(Unaudited) 12/31/98
------------- ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 169,525 $ 790,648
Net realized gain (loss) 7,792,721 8,795,193
Net change in unrealized appreciation
(depreciation) (1,199,798) 11,029,950
------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 6,762,448 20,615,791
------------- ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A -- (718,900)
Net investment income, Class B -- (51,501)
Net investment income, Class C -- (31,607)
Net realized gains, Class A -- (4,454,688)
Net realized gains, Class B -- (700,523)
Net realized gains, Class C -- (468,778)
------------- ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS -- (6,425,997)
------------- ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (593,143
and 511,438 shares, respectively) 21,348,490 16,268,814
Net asset value of shares issued from
reinvestment of distributions
(0 and 140,176 shares, respectively) -- 4,824,840
Cost of shares repurchased (197,226
and 514,775 shares, respectively) (7,065,791) (16,514,937)
------------- ------------
Total 14,282,699 4,578,717
------------- ------------
CLASS B
Proceeds from sales of shares (282,807
and 131,818 shares, respectively) 9,987,941 4,376,531
Net asset value of shares issued from
reinvestment of distributions
(0 and 20,594 shares, respectively) -- 699,581
Cost of shares repurchased (41,685 and
72,187 shares, respectively) (1,464,746) (2,275,763)
------------- ------------
Total 8,523,195 2,800,349
------------- ------------
CLASS C
Proceeds from sales of shares (141,821
and 69,806 shares, respectively) 5,021,667 2,171,650
Net asset value of shares issued from
reinvestment of distributions
(0 and 13,470 shares, respectively) -- 458,553
Cost of shares repurchased (23,333 and
56,060 shares, respectively) (827,126) (1,759,923)
------------- ------------
Total 4,194,541 870,280
------------- ------------
CLASS M
Proceeds from sales of shares (0 and
3,393 shares, respectively) -- 100,100
Net asset value of shares issued from
reinvestment of distributions
(0 and 0 shares, respectively) -- --
Cost of shares repurchased (0 and
3,393 shares, respectively) -- (112,685)
------------- ------------
Total -- (12,585)
------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 27,000,435 8,236,761
------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS 33,762,883 22,426,555
------------- ------------
NET ASSETS
Beginning of period 91,742,287 69,315,732
------------- ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$169,525 AND $0, RESPECTIVELY] $ 125,505,170 $ 91,742,287
------------- ------------
------------- ------------
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Balanced Return Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
6/30/99 -----------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 34.83 $ 29.05 $ 28.08 $ 25.39 $ 20.54 $ 21.97
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.09(1) 0.40 0.30(1)(2) 0.29(1)(3) 0.27(1) 0.39(1)
Net realized and unrealized
gain (loss) 2.19 8.03 4.98 4.23 5.31 (1.36)
----- ----- ------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS 2.28 8.43 5.28 4.52 5.58 (0.97)
----- ----- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net
investment income -- (0.40) (0.32) (0.30) (0.29) (0.46)
Dividends from net realized
gains -- (2.25) (3.99) (1.53) (0.44) --
----- ----- ------- ------- ------- -------
TOTAL DISTRIBUTIONS -- (2.65) (4.31) (1.83) (0.73) (0.46)
----- ----- ------- ------- ------- -------
Change in net asset value 2.28 5.78 0.97 2.69 4.85 (1.43)
----- ----- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $37.11 $34.83 $29.05 $28.08 $25.39 $20.54
----- ----- ------- ------- ------- -------
----- ----- ------- ------- ------- -------
Total return(4) 6.55%(7) 29.12% 18.98%(2) 17.78%(3) 27.18% (4.43)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $92,073 $72,620 $56,610 $51,947 $52,028 $53,047
RATIO TO AVERAGE NET ASSETS
OF:
Operating expenses 1.58%(6) 1.63% 1.7%(2) 2.0%(3) 2.1% 2.1%
Net investment income (loss) 0.51%(6) 1.15% 1.0%(2) 1.1%(3) 1.2% 1.8%
Portfolio turnover 20%(7) 124% 40.3% 35.1% 51.1% 28.2%
</TABLE>
The table above provides condensed information concerning income and
capital changes for one share of the Phoenix-Engemann Balanced Return Fund.
Such information is based on the Fund's audited financial statements for
the years presented.
(1) Computed using average shares outstanding.
(2) These amounts reflect the impact of a waiver of administration fees of
$33,360. Absent the waiver, net investment income per share, total return
and the ratios of expenses and net investment income to average net assets
for Class A, Class B and Class C shares would have been $.29, $.06 and
$.06, respectively, 18.98%, 18.15% and 18.11%, respectively, 1.7%, 2.5% and
2.5%, respectively, and 0.9%, 0.2% and 0.2%, respectively.
(3) These amounts reflect the impact of a waiver of administration fees of
$55,000. Absent the waiver, net investment income per share, total return
and the ratios of expenses and net investment income to average net assets
for Class A, Class B and Class C shares would have been $.27, $.06 and
$.06, respectively, 17.66%, 16.74% and 16.71%, respectively, 2.1%, 2.8% and
2.8%, respectively, and 1.0%, 0.2% and 0.2%, respectively.
(4) Total return measures the change in the value of an investment during each
of the years presented and does not include the impact of paying any
applicable front- end or contingent deferred sales charge.
(5) Inception date for Class B and Class C is January 3, 1994.
(6) Annualized.
(7) Not annualized.
See Notes to Financial Statements
7
<PAGE>
Phoenix-Engemann Balanced Return Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
6/30/99 -----------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994(5)
<C> <S> <C> <C>
Net asset value, beginning of
period $34.37 $28.76 $27.85 $25.26 $20.49 $21.89
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) (0.04)(1) 0.13 0.08(1)(2) 0.09(1)(3) 0.08(1) 0.26(1)
Net realized and unrealized
gain (loss) 2.16 7.91 4.93 4.16 5.29 (1.32)
----- ----- ------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS 2.12 8.04 5.01 4.25 5.37 (1.06)
----- ----- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net
investment income -- (0.18) (0.11) (0.13) (0.16) (0.34)
Dividends from net realized
gains -- (2.25) (3.99) (1.53) (0.44) --
----- ----- ------- ------- ------- -------
TOTAL DISTRIBUTIONS -- (2.43) (4.10) (1.66) (0.60) (0.34)
----- ----- ------- ------- ------- -------
Change in net asset value 2.12 5.61 0.91 2.59 4.77 (1.40)
----- ----- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $36.49 $34.37 $28.76 $27.85 $25.26 $20.49
----- ----- ------- ------- ------- -------
----- ----- ------- ------- ------- -------
Total return(4) 6.17%(7) 28.06% 18.15%(2) 16.82%(3) 26.20% (4.85)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $21,021 $11,512 $7,125 $4,609 $2,721 $1,223
RATIO TO AVERAGE NET ASSETS
OF:
Operating expenses 2.34%(6) 2.38% 2.4%(2) 2.7%(3) 2.9% 2.9%
Net investment income (loss) (0.23)%(6) 0.39% 0.3%(2) 0.3%(3) 0.3% 1.3%
Portfolio turnover 20%(7) 124% 40.3% 35.1% 51.1% 28.2%
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Balanced Return Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
--------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
6/30/99 -----------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994(5)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 34.44 $ 28.80 $ 27.88 $ 25.28 $ 20.48 $ 21.89
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) (0.04)(1) 0.14 0.08(1)(2) 0.09(1)(3) 0.07(1) 0.25(1)
Net realized and unrealized
gain (loss) 2.16 7.92 4.92 4.16 5.30 (1.31)
----- ----- ------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS 2.12 8.06 5.00 4.25 5.37 (1.06)
----- ----- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net
investment income -- (0.17) (0.09) (0.12) (0.13) (0.35)
Dividends from net realized
gains -- (2.25) (3.99) (1.53) (0.44) --
----- ----- ------- ------- ------- -------
TOTAL DISTRIBUTIONS -- (2.42) (4.08) (1.65) (0.57) (0.35)
----- ----- ------- ------- ------- -------
Change in net asset value 2.12 5.64 0.92 2.60 4.80 (1.41)
----- ----- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $36.56 $34.44 $28.80 $27.88 $25.28 $20.48
----- ----- ------- ------- ------- -------
----- ----- ------- ------- ------- -------
Total return(4) 6.16%(7) 28.07% 18.11%(2) 16.79%(3) 26.23% (4.85)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $12,412 $7,610 $5,581 $4,183 $2,809 $1,449
RATIO TO AVERAGE NET ASSETS
OF:
Operating expenses 2.34%(6) 2.38% 2.4%(2) 2.7%(3) 2.9% 2.9%
Net investment income (loss) (0.24)%(6) 0.39% 0.3%(2) 0.3%(3) 0.3% 1.3%
Portfolio turnover 20%(7) 124% 40.3% 35.1% 51.1% 28.2%
</TABLE>
The table above provides condensed information concerning income and
capital changes for one share of the Phoenix-Engemann Balanced Return Fund.
Such information is based on the Fund's audited financial statements for
the years presented.
(1) Computed using average shares outstanding.
(2) These amounts reflect the impact of a waiver of administration fees of
$33,360. Absent the waiver, net investment income per share, total return
and the ratios of expenses and net investment income to average net assets
for Class A, Class B and Class C shares would have been $.29, $.06 and
$.06, respectively, 18.98%, 18.15% and 18.11%, respectively, 1.7%, 2.5% and
2.5%, respectively, and 0.9%, 0.2% and 0.2%, respectively.
(3) These amounts reflect the impact of a waiver of administration fees of
$55,000. Absent the waiver, net investment income per share, total return
and the ratios of expenses and net investment income to average net assets
for Class A, Class B and Class C shares would have been $.27, $.06 and
$.06, respectively, 17.66%, 16.74% and 16.71%, respectively, 2.1%, 2.8% and
2.8%, respectively, and 1.0%, 0.2% and 0.2%, respectively.
(4) Total return measures the change in the value of an investment during each
of the years presented and does not include the impact of paying any
applicable front- end or contingent deferred sales charge.
(5) Inception date for Class B and Class C is January 3, 1994.
(6) Annualized.
(7) Not annualized.
See Notes to Financial Statements
9
<PAGE>
Phoenix-Engemann Global Growth Fund
INVESTMENTS AT JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
----------- ------------
<S> <C> <C> <C>
FOREIGN COMMON STOCKS--50.3%
FINLAND--5.1%
Nokia Oyj Sponsored ADR Class A
(Communications Equipment).............. 12,200 $ 1,117,062
FRANCE--6.8%
AXA Sponsored ADR (Insurance
(Life/Health)).......................... 4,800 299,100
Alcatel SA ADR (Communications
Equipment).............................. 10,100 286,588
Rhone-Poulenc Class A (Chemicals
(Diversified)).......................... 6,000 274,173
Vivendi (Manufacturing (Diversified))... 7,500 607,546
------------
1,467,407
------------
GERMANY--4.1%
DaimlerChrysler AG (Automobiles)........ 3,758 333,992
Siemens AG (Electronics (Component
Distributors)).......................... 4,100 316,269
Volkswagen AG (Automobiles)............. 3,900 249,763
------------
900,024
------------
IRELAND--2.4%
Allied Irish Banks PLC Sponsored ADR
(Banks (Money Center)).................. 6,900 188,025
Elan Corp. PLC Sponsored ADR (Health
Care (Drugs-Major
Pharmaceuticals))(b).................... 12,200 338,550
------------
526,575
------------
ITALY--3.7%
Luxottica Group SPA Sponsored ADR
(Health Care (Medical Products &
Supplies)).............................. 25,000 389,063
Telecom Italia SPA Sponsored ADR
(Telecommunications (Long Distance)).... 4,000 420,750
------------
809,813
------------
NETHERLANDS--6.8%
ING Groep NV (Financial
(Diversified)).......................... 11,862 642,227
Koninklijke (Royal) Philips Electronics
NV NY Registered Shares (Electrical
Equipment).............................. 1,932 194,891
Koninklijke Ahold NV Spnsored ADR
(Retail (Food Chains)).................. 5,900 204,288
Unilever NV Cumulative Preference Shares
(Foods)(b).............................. 3,100 16,624
<CAPTION>
SHARES VALUE
----------- ------------
<S> <C> <C> <C>
NETHERLANDS--CONTINUED
Wolters Klumer NV (Publishing).......... 10,596 $ 421,794
------------
1,479,824
------------
SINGAPORE--3.5%
Datacraft Asia Ltd. (Electronics
(Component Distributors))............... 172,250 751,010
SWEDEN--4.2%
Telefonaktiebolaget LM Ericsson
Sponsored ADR (Communications
Equipment).............................. 19,500 642,281
Volvo AB Sponsored ADR (Automobiles).... 8,800 258,500
------------
900,781
------------
SWITZERLAND--3.6%
Nestle SA Sponsored ADR (Foods)......... 2,200 198,194
Zurich Allied AG (Financial
(Diversified)).......................... 1,020 580,011
------------
778,205
------------
UNITED KINGDOM--10.1%
Amvescap PLC Sponsored ADR (Investment
Management)............................. 8,500 395,250
Cable & Wireless Communications PLC
(Telephone)(b).......................... 5,200 252,200
Cable & Wireless PLC (Telecommunications
(Long Distance))........................ 5,900 233,788
Hays PLC (Services (Commercial &
Consumer)).............................. 37,000 389,888
Rentokil Initial PLC (Services
(Commercial & Consumer))................ 55,500 216,523
Vodafone AirTouch PLC Sponsored ADR
(Telecommunications
(Cellular/Wireless)).................... 3,600 709,200
------------
2,196,849
------------
- -------------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $7,926,056) 10,927,550
- -------------------------------------------------------------------------------
</TABLE>
10 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Global Growth Fund
<TABLE>
<CAPTION>
SHARES VALUE
----------- ------------
<S> <C> <C> <C>
COMMON STOCKS--39.0%
UNITED STATES--39.0%
America Online, Inc. (Computers
(Software & Services))(b)............... 2,010 $ 222,105
American Express Co. (Financial
(Diversified)).......................... 1,350 175,669
American International Group, Inc.
(Insurance (Multi-Line))................ 910 106,527
Avon Products, Inc. (Personal Care)..... 1,600 88,800
BMC Software, Inc. (Computers (Software
& Services))(b)......................... 4,690 253,260
Carnival Corp. (Lodging-Hotels)......... 3,830 185,755
Cendant Corp. (Services (Commercial &
Consumer))(b)........................... 3,924 80,442
Cisco Systems, Inc. (Computers
(Networking))(b)........................ 7,030 453,435
Citigroup, Inc. (Financial
(Diversified)).......................... 6,520 309,700
Coca-Cola Co. (The) (Beverages
(Non-Alcoholic))........................ 2,025 126,562
Countrywide Credit Industries, Inc.
(Consumer Finance)...................... 2,000 85,500
Dayton Hudson Corp. (Retail (General
Merchandise))........................... 2,715 176,475
EMC Corp. (Computers
(Peripherals))(b)....................... 3,970 218,350
Freddie Mac (Financial (Diversified))... 5,745 333,210
General Electric Co. (Electrical
Equipment).............................. 1,790 202,270
Gillette Co. (The) (Personal Care)...... 3,255 133,455
Home Depot, Inc. (The) (Retail (Building
Supplies)).............................. 5,320 342,808
Intel Corp. (Electronics
(Semiconductors))....................... 5,140 305,830
Interpublic Group of Companies, Inc.
(The) (Services
(Advertising/Marketing))................ 1,300 112,613
Kansas City Southern Industries, Inc.
(Railroads)............................. 2,495 159,212
Lilly (Eli) & Co. (Health Care
(Drugs-Major Pharmaceuticals)).......... 1,970 141,101
Lucent Technologies, Inc.
(Communications Equipment).............. 4,650 313,584
MCI WorldCom, Inc. (Telecommunications
(Long Distance))(b)..................... 7,240 624,450
<CAPTION>
SHARES VALUE
----------- ------------
<S> <C> <C> <C>
UNITED STATES--CONTINUED
Medtronic, Inc. (Health Care (Medical
Products & Supplies))................... 3,405 $ 265,164
Merck & Co., Inc. (Health Care
(Drugs-Major Pharmaceuticals)).......... 4,160 307,840
Microsoft Corp. (Computers (Software &
Services))(b)........................... 4,830 435,606
Pfizer, Inc. (Health Care (Drugs-Major
Pharmaceuticals))....................... 3,210 352,297
Staples, Inc. (Retail (Specialty))(b)... 6,350 196,453
State Street Corp. (Banks (Major
Regional)).............................. 1,815 154,956
Sun Microsystems, Inc. (Computers
(Hardware))(b).......................... 1,800 123,975
Tellabs, Inc. (Communications
Equipment)(b)........................... 5,500 371,594
Texas Instruments, Inc. (Electronics
(Semiconductors))....................... 3,610 523,450
Walgreen Co. (Retail (Drug Stores))..... 3,405 100,022
Walt Disney Co. (The) (Entertainment)... 5,600 172,550
Warner-Lambert Co. (Health Care
(Diversified)).......................... 2,455 170,316
Wells Fargo Co. (Banks (Major
Regional)).............................. 3,610 154,327
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $5,794,717) 8,479,663
- -------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--89.3%
(IDENTIFIED COST $13,720,773) 19,407,213
- -------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS--11.1%
MUTUAL FUNDS--11.1%
Phoenix Institutional Enhanced Reserves
Portfolio............................... 246 2,406,030
- -------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $2,408,135) 2,406,030
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS--100.4%
(IDENTIFIED COST $16,128,908) 21,813,243(a)
Cash and receivables, less liabilities--(0.4%) (94,592)
-------------
NET ASSETS--100.0% $ 21,718,651
-------------
-------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $5,998,279 and gross
depreciation of $356,536 for federal income tax purposes. At June 30, 1999,
the aggregate cost of securities for federal income tax purposes was
$16,171,500.
(b) Non-income producing.
See Notes to Financial Statements
11
<PAGE>
Phoenix-Engemann Global Growth Fund
INDUSTRY DIVERSIFICATION
AS A PERCENTAGE OF TOTAL VALUE OF TOTAL LONG-TERM INVESTMENTS
(UNAUDITED)
<TABLE>
<S> <C>
Automobiles.............................................................. 4.3%
Banks (Major Regional)................................................... 1.6
Banks (Money Center)..................................................... 1.0
Beverages (Non-Alcoholic)................................................ 0.7
Chemicals (Diversified).................................................. 1.4
Communications Equipment................................................. 14.2
Computers (Hardware)..................................................... 0.6
Computers (Networking)................................................... 2.3
Computers (Peripherals).................................................. 1.1
Computers (Software & Services).......................................... 4.7
Consumer Finance......................................................... 0.4
Electrical Equipment..................................................... 2.0
Electronics (Component Distributors)..................................... 5.5
Electronics (Semiconductors)............................................. 4.3
Entertainment............................................................ 0.9
Financial (Diversified).................................................. 10.5
Foods.................................................................... 1.1
Health Care (Diversified)................................................ 0.9
Health Care (Drugs-Major Pharmaceuticals)................................ 5.9
Health Care (Medical Products & Supplies)................................ 3.4
Insurance (Life/Health).................................................. 1.5
Insurance (Multi-Line)................................................... 0.5
Investment Management.................................................... 2.0
Lodging-Hotels........................................................... 1.0
Manufacturing (Diversified).............................................. 3.1
Personal Care............................................................ 1.1
Publishing............................................................... 2.2
Railroads................................................................ 0.8
Retail (Building Supplies)............................................... 1.8
Retail (Drug Stores)..................................................... 0.5
Retail (Food Chains)..................................................... 1.1
Retail (General Merchandise)............................................. 0.9
Retail (Specialty)....................................................... 1.0
Services (Advertising/Marketing)......................................... 0.6
Services (Commercial & Consumer)......................................... 3.5
Telecommunications (Cellular/Wireless)................................... 3.7
Telecommunications (Long Distance)....................................... 6.6
Telephone................................................................ 1.3
-----
100.0%
-----
-----
</TABLE>
12 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Global Growth Fund
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $16,128,908) $ 21,813,243
Cash 316
Receivables
Dividends and interest 27,709
Fund shares sold 19,912
--------------
Total assets 21,861,180
--------------
LIABILITIES
Payables
Investment securities purchased 50,000
Fund shares repurchased 22,596
Distribution fee 18,350
Investment advisory fee 15,329
Administration fee 14,074
Trustees' fee 4,839
Accrued expenses 17,341
--------------
Total liabilities 142,529
--------------
NET ASSETS $ 21,718,651
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 17,415,922
Undistributed net investment loss (92,278)
Accumulated net realized loss (1,287,335)
Net unrealized appreciation 5,682,342
--------------
NET ASSETS $ 21,718,651
--------------
--------------
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $12,942,024) 544,324
Net asset value per share $23.78
Offering price per share $23.78/(1-4.75%) $24.97
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $4,873,148) 209,560
Net asset value and offering price per share $23.25
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $3,903,479) 167,964
Net asset value and offering price per share $23.24
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 159,759
Interest 843
Foreign taxes withheld (7,287)
----------
Total investment income 153,315
----------
EXPENSES
Investment advisory fee 119,928
Distribution fee, Class A 16,230
Distribution fee, Class B 23,763
Distribution fee, Class C 20,289
Administration 65,383
Professional 11,848
Trustees 7,273
----------
Total expenses 264,714
Less expenses borne by investment adviser (19,121)
----------
Net expenses 245,593
----------
NET INVESTMENT LOSS (92,278)
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 529,051
Net realized loss on foreign currency transactions (17,978)
Net change in unrealized appreciation (depreciation) on
investments 908,049
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currrency transactions (1,993)
----------
NET GAIN ON INVESTMENTS 1,417,129
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,324,851
----------
----------
</TABLE>
See Notes to Financial Statements 13
<PAGE>
Phoenix-Engemann Global Growth Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/99 Year Ended
(Unaudited) 12/31/98
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (92,278) $ (246,044)
Net realized gain (loss) 511,073 (1,648,700)
Net change in unrealized appreciation
(depreciation) 906,056 4,510,799
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,324,851 2,616,055
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A -- (120,705)
Net realized gains, Class B -- (41,681)
Net realized gains, Class C -- (36,810)
In excess of accumulated net realized
gains, Class A -- (81,653)
In excess of accumulated net realized
gains, Class B -- (28,196)
In excess of accumulated net realized
gains, Class C -- (24,901)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS -- (333,946)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (70,350
and 243,697 shares, respectively) 1,623,256 5,188,236
Net asset value of shares issued from
reinvestment of distributions
(0 and 8,717 shares, respectively) -- 190,194
Cost of shares repurchased (128,077
and 253,582 shares, respectively) (2,941,286) (5,341,266)
------------ ------------
Total (1,318,030) 37,164
------------ ------------
CLASS B
Proceeds from sales of shares (24,518
and 82,048 shares, respectively) 546,014 1,741,279
Net asset value of shares issued from
reinvestment of distributions
(0 and 3,137 shares, respectively) -- 67,204
Cost of shares repurchased (30,592 and
38,086 shares, respectively) (685,077) (810,368)
------------ ------------
Total (139,063) 998,115
------------ ------------
CLASS C
Proceeds from sales of shares (29,942
and 47,457 shares, respectively) 674,152 1,013,490
Net asset value of shares issued from
reinvestment of distributions
(0 and 2,766 shares, respectively) -- 59,214
Cost of shares repurchased (57,296 and
47,533 shares, respectively) (1,287,431) (985,469)
------------ ------------
Total (613,279) 87,235
------------ ------------
CLASS M
Proceeds from sales of shares (0 and
5,050 shares, respectively) -- 100,100
Net asset value of shares issued from
reinvestment of distributions
(0 and 0 shares, respectively) -- --
Cost of shares repurchased (0 and
5,050 shares, respectively) -- (101,405)
------------ ------------
Total -- (1,305)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (2,070,372) 1,121,209
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (745,521) 3,403,318
NET ASSETS
Beginning of period 22,464,172 19,060,854
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($92,278) AND $0, RESPECTIVELY] $21,718,651 $22,464,172
------------ ------------
------------ ------------
</TABLE>
14 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Global Growth Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/99 ---------------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 22.34 $ 19.83 $ 19.06 $ 17.27 $ 14.06 $ 11.18
INCOME FROM INVESTMENT
OPERATIONS(6)
Net investment income (loss) (0.07)(5) (0.18)(1)(5) (0.19)(1)(2) 0.03(1)(3) 0.24(1)(3) 0.10(1)(3)
Net realized and unrealized
gain (loss) 1.51 3.02 2.29 3.55 3.11 2.78
----- ----- ------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS 1.44 2.84 2.10 3.58 3.35 2.88
----- ----- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net
investment income -- -- -- (0.04) -- --
Dividends from net realized
gains -- (0.20) (1.33) (1.75) (0.14) --
In excess of accumulated net
realized gains -- (0.13) -- -- -- --
----- ----- ------- ------- ------- -------
TOTAL DISTRIBUTIONS -- (0.33) (1.33) (1.79) (0.14) --
----- ----- ------- ------- ------- -------
Change in net asset value 1.44 2.51 0.77 1.79 3.21 2.88
----- ----- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 23.78 $ 22.34 $ 19.83 $ 19.06 $ 17.27 $ 14.06
----- ----- ------- ------- ------- -------
----- ----- ------- ------- ------- -------
Total return(4) 6.45%(9) 14.35% 11.27%(2) 21.77%(3) 23.84%(3) 25.76%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $12,942 $13,453 $11,964 $7,654 $3,203 $141
RATIO TO AVERAGE NET ASSETS
OF:
Operating expenses 1.95%(8) 1.94% 2.0%(2) 0.8%(3) --%(3) --%(3)
Net investment income (loss) (0.55)%(8) (0.81)% (0.9)%(2) 0.1%(3) 1.4%(3) 0.8%(3)
Portfolio turnover 18%(9) 95% 237.2% 220.3% 29.0% 479.3%
</TABLE>
The table above provides condensed information concerning income and
capital changes for one share of the Phoenix-Engemann Global Growth Fund.
Such information is based on the Fund's audited financial statements for
the years presented.
(1) Computed using average shares outstanding.
(2) These amounts reflect the impact of a waiver of administration fees of
$708. Absent the waiver, net investment income (loss) per share, total
return and the ratios of expenses and net investment income (loss) to
average net assets for Class A, Class B and Class C shares would have been
$(.19), $(.35) and $(.37), respectively, 11.27%, 10.44% and 10.50%,
respectively, 2.0%, 2.8% and 2.8%, respectively, and (0.9)%, (1.7)% and
(1.8)%, respectively.
(3) These amounts reflect the impact of a waiver of Manager fees of $62,438,
$42,545 and $2,784 for the periods ended December 31, 1996, 1995 and 1994,
respectively, and the Manager's reimbursement for income taxes of $13,109
during 1994. Absent waivers and reimbursement, net investment income (loss)
per share, total return and ratios of expenses and net investment income
(loss) to average net assets would have been $(.21), 21.71%, 2.0% and
(1.2)%, respectively, $(.15), 22.88%, 2.3% and (0.9)%, respectively, and
$(.21), 14.40%, 10.4% (2.3% if only normal and recurring expenses are taken
into account) and (1.7)% respectively, for the periods ended December 31,
1996, 1995 and 1994, respectively.
(4) Total return measures the change in the value of an investment during each
of the periods presented and does not include the impact of paying any
sales charge. Total return for the periods ended December 31, 1996 (Class B
and Class C only) have not been annualized.
(5) Includes reimbursement of operating expenses by investment adviser of $0.02
and $0.04, respectively.
(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) The beginning net asset value per share of Class B and Class C shares
equals the net asset value per share of the Class A shares as of the first
day Class B and Class C shares were sold, September 18, 1996 and October
21, 1996, respectively.
(8) Annualized.
(9) Not annualized.
See Notes to Financial Statements
15
<PAGE>
Phoenix-Engemann Global Growth Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/99 -------------------------------------------
(UNAUDITED) 1998 1997 1996
<C> <S> <C>
Net asset value, beginning of
period $ 21.93 $ 19.65 $ 19.04 $ 17.44(7)
INCOME FROM INVESTMENT
OPERATIONS(6)
Net investment income (loss) (0.15)(5) (0.34)(1)(5) (0.35)(1)(2) (0.08)(1)
Net realized and unrealized
gain (loss) 1.47 2.95 2.29 1.82
----- ------- ------- -----
TOTAL FROM INVESTMENT
OPERATIONS 1.32 2.61 1.94 1.74
----- ------- ------- -----
LESS DISTRIBUTIONS
Dividends from net realized
gains -- (0.20) (1.33) (0.14)
In excess of accumulated net
realized gains -- (0.13) -- --
----- ------- ------- -----
TOTAL DISTRIBUTIONS -- (0.33) (1.33) (0.14)
----- ------- ------- -----
Change in net asset value 1.32 2.28 0.61 1.60
----- ------- ------- -----
NET ASSET VALUE, END OF PERIOD $ 23.25 $ 21.93 $ 19.65 $ 19.04
----- ------- ------- -----
----- ------- ------- -----
Total return(4) 6.02%(9) 13.31% 10.44%(2) 9.98%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $4,873 $4,730 $3,312 $874
RATIO TO AVERAGE NET ASSETS
OF:
Operating expenses 2.70%(8) 2.69% 2.8%(2) 2.7%(8)
Net investment income (loss) (1.28)%(8) (1.59)% (1.7)%(2) (1.9)%(8)
Portfolio turnover 18%(9) 95% 237.2% 220.3%
</TABLE>
16 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Global Growth Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
-------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/99 ------------------------------------------
(UNAUDITED) 1998 1997 1996
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 21.92 $ 19.65 $ 19.03 $ 17.88(7)
INCOME FROM INVESTMENT
OPERATIONS(6)
Net investment income (loss) (0.16)(5) (0.33)(1)(5) (0.37)(1)(2) (0.04)(1)
Net realized and unrealized
gain (loss) 1.48 2.93 2.32 1.34
----- ------- ------- -----
TOTAL FROM INVESTMENT
OPERATIONS 1.32 2.60 1.95 1.30
----- ------- ------- -----
LESS DISTRIBUTIONS
Dividends from net
investment income -- -- -- (0.01)
Dividends from net realized
gains -- (0.20) (1.33) (0.14)
In excess of accumulated net
realized gains -- (0.13) -- --
----- ------- ------- -----
TOTAL DISTRIBUTIONS -- (0.33) (1.33) (0.15)
----- ------- ------- -----
Change in net asset value 1.32 2.27 0.62 1.15
----- ------- ------- -----
NET ASSET VALUE, END OF PERIOD $ 23.24 $ 21.92 $ 19.65 $ 19.03
----- ------- ------- -----
----- ------- ------- -----
Total return(4) 6.02%(9) 13.26%(2) 10.50%(2) 7.28%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $3,903 $4,282 $3,785 $106
RATIO TO AVERAGE NET ASSETS
OF:
Operating expenses 2.70%(8) 2.69% 2.7%(2) 2.7%(8)
Net investment income (loss) (1.31)%(8) (1.57)% (1.8)%(2) (1.6)%(8)
Portfolio turnover 18%(9) 95% 237.2% 220.3%
</TABLE>
The table above provides condensed information concerning income and
capital changes for one share of the Phoenix-Engemann Global Growth Fund.
Such information is based on the Fund's audited financial statements for
the years presented.
(1) Computed using average shares outstanding.
(2) These amounts reflect the impact of a waiver of administration fees of
$708. Absent the waiver, net investment income (loss) per share, total
return and the ratios of expenses and net investment income (loss) to
average net assets for Class A, Class B and Class C shares would have been
$(.19), $(.35) and $(.37), respectively, 11.27%, 10.44% and 10.50%,
respectively, 2.0%, 2.8% and 2.8%, respectively, and (0.9)%, (1.7)% and
(1.8)%, respectively.
(3) These amounts reflect the impact of a waiver of Manager fees of $62,438,
$42,545 and $2,784 for the periods ended December 31, 1996, 1995 and 1994,
respectively, and the Manager's reimbursement for income taxes of $13,109
during 1994. Absent waivers and reimbursement, net investment income (loss)
per share, total return and ratios of expenses and net investment income
(loss) to average net assets would have been $(.21), 21.71%, 2.0% and
(1.2)%, respectively, $(.15), 22.88%, 2.3% and (0.9)%, respectively, and
$(.21), 14.40%, 10.4% (2.3% if only normal and recurring expenses are taken
into account) and (1.7)% respectively, for the periods ended December 31,
1996, 1995 and 1994, respectively.
(4) Total return measures the change in the value of an investment during each
of the periods presented and does not include the impact of paying any
sales charge. Total return for the periods ended December 31, 1996 (Class B
and Class C only) have not been annualized.
(5) Includes reimbursement of operating expenses by investment adviser of $0.02
and $0.04, respectively.
(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) The beginning net asset value per share of Class B and Class C shares
equals the net asset value per share of the Class A shares as of the first
day Class B and Class C shares were sold, September 18, 1996 and October
21, 1996, respectively.
(8) Annualized.
(9) Not annualized.
See Notes to Financial Statements
17
<PAGE>
Phoenix-Engemann Growth Fund
INVESTMENTS AT JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C> <C>
COMMON STOCKS--93.9%
BANKS (MAJOR REGIONAL)--1.7%
Wells Fargo Co.......................... 247,700 $ 10,589,175
BROADCASTING (TELEVISION, RADIO & CABLE)--1.0%
Clear Channel Communications, Inc.(b)... 85,000 5,859,687
COMMUNICATIONS EQUIPMENT--9.1%
Lucent Technologies, Inc................ 486,000 32,774,625
Tellabs, Inc.(b)........................ 341,100 23,045,569
-------------
55,820,194
-------------
COMPUTERS (HARDWARE)--2.0%
Dell Computer Corp.(b).................. 150,000 5,550,000
International Business Machines Corp.... 50,000 6,462,500
-------------
12,012,500
-------------
COMPUTERS (NETWORKING)--6.2%
Cisco Systems, Inc.(b).................. 592,224 38,198,448
COMPUTERS (PERIPHERALS)--3.0%
EMC Corp.(b)............................ 334,000 18,370,000
COMPUTERS (SOFTWARE & SERVICES)--12.9%
America Online, Inc.(b)................. 277,000 30,608,500
BMC Software, Inc.(b)................... 150,000 8,100,000
Compuware Corp.(b)...................... 245,000 7,794,062
Microsoft Corp.(b)...................... 362,600 32,701,988
-------------
79,204,550
-------------
CONSUMER FINANCE--1.2%
MBNA Corp............................... 235,450 7,210,656
ELECTRICAL EQUIPMENT--3.1%
General Electric Co..................... 170,000 19,210,000
ELECTRONICS (SEMICONDUCTORS)--11.3%
Intel Corp.............................. 252,800 15,041,600
Texas Instruments, Inc.................. 374,600 54,317,000
-------------
69,358,600
-------------
ENTERTAINMENT--1.1%
Time Warner, Inc........................ 90,000 6,615,000
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C> <C>
FINANCIAL (DIVERSIFIED)--6.8%
American Express Co..................... 94,000 $ 12,231,750
Citigroup, Inc.......................... 330,000 15,675,000
Freddie Mac............................. 239,150 13,870,700
-------------
41,777,450
-------------
HEALTH CARE (DIVERSIFIED)--1.9%
Warner-Lambert Co....................... 170,000 11,793,750
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--5.6%
Merck & Co., Inc........................ 208,200 15,406,800
Pfizer, Inc............................. 170,600 18,723,350
-------------
34,130,150
-------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--1.9%
Medtronic, Inc.......................... 150,100 11,689,038
INSURANCE (MULTI-LINE)--1.1%
American International Group, Inc....... 57,500 6,731,094
INVESTMENT BANKING/BROKERAGE--3.5%
Goldman Sachs Group, Inc. (The)......... 100,000 7,225,000
Merrill Lynch & Co., Inc................ 176,000 14,069,000
-------------
21,294,000
-------------
LODGING-HOTELS--1.9%
Carnival Corp........................... 245,500 11,906,750
MANUFACTURING (DIVERSIFIED)--1.0%
Tyco International Ltd.................. 64,000 6,064,000
RETAIL (BUILDING SUPPLIES)--3.7%
Home Depot, Inc. (The).................. 350,000 22,553,125
RETAIL (DEPARTMENT STORES)--1.8%
Kohl's Corp.(b)......................... 142,700 11,014,656
RETAIL (GENERAL MERCHANDISE)--2.0%
Wal-Mart Stores, Inc.................... 259,000 12,496,750
RETAIL (SPECIALTY)--2.0%
Staples, Inc.(b)........................ 395,500 12,235,781
SERVICES (ADVERTISING/MARKETING)--1.1%
Interpublic Group of Companies, Inc.
(The)................................... 75,750 6,561,844
SERVICES (COMMERCIAL & CONSUMER)--1.1%
Cendant Corp.(b)........................ 336,833 6,905,077
</TABLE>
18 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Growth Fund
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C> <C>
TELECOMMUNICATIONS (LONG DISTANCE)--5.9%
MCI WorldCom, Inc.(b)................... 420,600 $ 36,276,750
- ------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $271,686,804) 575,879,025
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS--93.9%
(IDENTIFIED COST $271,686,804) 575,879,025(a)
Cash and receivables, less liabilities--6.1% 37,285,474
--------------
NET ASSETS--100.0% $ 613,164,499
--------------
--------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $304,727,366 and gross
depreciation of $535,145 for federal income tax purposes. At June 30, 1999,
the aggregate cost of securities for federal income tax purposes was
$271,686,804.
(b) Non-income producing.
See Notes to Financial Statements
19
<PAGE>
Phoenix-Engemann Growth Fund
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $271,686,804) $ 575,879,025
Cash 34,532,056
Receivables
Investment securities sold 9,117,757
Fund shares sold 1,429,359
Dividends and interest 221,027
--------------
Total assets 621,179,224
--------------
LIABILITIES
Payables
Investment securities purchased 5,847,734
Fund shares repurchased 945,772
Distribution fee 583,964
Investment advisory fee 381,252
Administration fee 238,071
Trustees' fee 2,415
Accrued expenses 15,517
--------------
Total liabilities 8,014,725
--------------
NET ASSETS $ 613,164,499
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 206,838,797
Undistributed net investment loss (3,500,351)
Accumulated net realized gain 105,633,832
Net unrealized appreciation 304,192,221
--------------
NET ASSETS $ 613,164,499
--------------
--------------
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $494,218,040) 16,063,987
Net asset value per share $30.77
Offering price per share $30.77/(1-4.75%) $32.30
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $78,692,524) 2,701,421
Net asset value and offering price per share $29.13
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $40,253,935) 1,381,843
Net asset value and offering price per share $29.13
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 1,090,052
Interest 254,412
--------------
Total investment income 1,344,464
--------------
EXPENSES
Investment advisory fee 2,275,284
Distribution fee, Class A 579,968
Distribution fee, Class B 356,882
Distribution fee, Class C 184,024
Administration 1,416,830
Professional 24,554
Trustees 7,273
--------------
Total expenses 4,844,815
--------------
NET INVESTMENT LOSS (3,500,351)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 48,576,486
Net change in unrealized appreciation (depreciation) on
investments 33,179,357
--------------
NET GAIN ON INVESTMENTS 81,755,843
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 78,255,492
--------------
--------------
</TABLE>
20 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Growth Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/99 Year Ended
(Unaudited) 12/31/98
------------- -------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (3,500,351) $ (4,059,521)
Net realized gain (loss) 48,576,486 77,363,122
Net change in unrealized appreciation
(depreciation) 33,179,357 80,943,604
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 78,255,492 154,247,205
------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A -- (19,191,036)
Net realized gains, Class B -- (3,003,744)
Net realized gains, Class C -- (1,570,635)
------------- -------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS -- (23,765,415)
------------- -------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (764,227
and 554,463 shares, respectively) 22,520,874 12,769,077
Net asset value of shares issued from
reinvestment of distributions
(0 and 665,077 shares, respectively) -- 17,245,429
Cost of shares repurchased (1,148,879
and 3,536,921 shares, respectively) (33,256,510) (79,785,149)
------------- -------------
Total (10,735,636) (49,770,643)
------------- -------------
CLASS B
Proceeds from sales of shares (331,681
and 245,967 shares, respectively) 9,153,505 5,372,379
Net asset value of shares issued from
reinvestment of distributions
(0 and 110,700 shares, respectively) -- 2,728,756
Cost of shares repurchased (219,312
and 534,746 shares, respectively) (5,937,216) (11,527,013)
------------- -------------
Total 3,216,289 (3,425,878)
------------- -------------
CLASS C
Proceeds from sales of shares (142,488
and 164,645 shares, respectively) 3,926,384 3,582,593
Net asset value of shares issued from
reinvestment of distributions
(0 and 58,568 shares, respectively) -- 1,443,709
Cost of shares repurchased (117,414
and 356,278 shares, respectively) (3,209,726) (7,561,830)
------------- -------------
Total 716,658 (2,535,528)
------------- -------------
CLASS M
Proceeds from sales of shares (0 and
4,866 shares, respectively) -- 100,100
Cost of shares repurchased (0 and
4,866 shares, respectively) -- (108,609)
------------- -------------
Total -- (8,509)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (6,802,689) (55,740,558)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS 71,452,803 74,741,232
NET ASSETS
Beginning of period 541,711,696 466,970,464
------------- -------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($3,500,351) AND $0, RESPECTIVELY] $ 613,164,499 $ 541,711,696
------------- -------------
------------- -------------
</TABLE>
See Notes to Financial Statements 21
<PAGE>
Phoenix-Engemann Growth Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
6/30/99 -----------------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 26.82 $ 20.43 $ 21.94 $ 19.28 $ 15.40 $ 16.00
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) (0.16)(1) (0.16)(1) (0.16)(1)(2) (0.14)(1)(3) (0.06)(1) (0.03)(1)
Net realized and unrealized
gain (loss) 4.11 7.76 3.51 4.47 4.24 (0.57)
------------ --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 3.95 7.60 3.35 4.33 4.18 (0.60)
------------ --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net
investment income -- -- -- -- -- --
Dividends from net realized
gains -- (1.21) (4.86) (1.67) (0.30) --
------------ --------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS -- (1.21) (4.86) (1.67) (0.30) --
------------ --------- --------- --------- --------- ---------
Change in net asset value 3.95 6.39 (1.51) 2.66 3.88 (0.60)
------------ --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 30.77 $ 26.82 $ 20.43 $ 21.94 $ 19.28 $ 15.40
------------ --------- --------- --------- --------- ---------
------------ --------- --------- --------- --------- ---------
Total return(4) 14.73%(7) 37.41% 16.04%(2) 22.49%(3) 27.16% (3.75)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $494,218 $441,146 $383,481 $426,785 $415,416 $391,831
RATIO TO AVERAGE NET ASSETS
OF:
Operating expenses 1.55%(6) 1.58% 1.6%(2) 1.6%(3) 1.6% 1.6%
Net investment income (loss) (1.08)%(6) (0.72)% (0.7)%(2) (0.6)%(3) (0.3)% (0.2)%
Portfolio turnover 27%(7) 119% 70.6% 70.1% 65.9% 53.8%
</TABLE>
22 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Growth Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
6/30/99 -----------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 25.49 $ 19.61 $ 21.40 $ 18.99 $ 15.28
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.25)(1) (0.32)(1) (0.34)(1)(2) (0.31)(1)(3) (0.20)(1)
Net realized and unrealized gain
(loss) 3.89 7.41 3.41 4.39 4.21
------------ --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 3.64 7.09 3.07 4.08 4.01
------------ --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- -- --
Dividends from net realized gains -- (1.21) (4.86) (1.67) (0.30)
------------ --------- --------- --------- ---------
TOTAL DISTRIBUTIONS -- (1.21) (4.86) (1.67) (0.30)
------------ --------- --------- --------- ---------
Change in net asset value 3.64 5.88 (1.79) 2.41 3.71
------------ --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 29.13 $ 25.49 $ 19.61 $ 21.40 $ 18.99
------------ --------- --------- --------- ---------
------------ --------- --------- --------- ---------
Total return(4) 14.28%(7) 36.38% 15.13%(2) 21.52%(3) 26.26%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $78,693 $65,986 $54,267 $49,444 $34,786
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.30%(6) 2.33% 2.4%(2) 2.3%(3) 2.4%
Net investment income (loss) (1.83)%(6) (1.47)% (1.5)%(2) (1.5)%(3) (1.1)%
Portfolio turnover 27%(7) 119% 70.6% 70.1% 65.9%
<CAPTION>
1994(5)
<S> <C> <C>
Net asset value, beginning of period $ 15.89
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.14)(1)
Net realized and unrealized gain
(loss) (0.47)
---------
TOTAL FROM INVESTMENT OPERATIONS (0.61)
---------
LESS DISTRIBUTIONS
Dividends from net investment income --
Dividends from net realized gains --
---------
TOTAL DISTRIBUTIONS --
---------
Change in net asset value (0.61)
---------
NET ASSET VALUE, END OF PERIOD $ 15.28
---------
---------
Total return(4) (3.84)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $11,349
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.3%
Net investment income (loss) (1.0)%
Portfolio turnover 53.8%
</TABLE>
The table above provides condensed information concerning income and capital
changes for one share of the Phoenix-Engemann Growth Fund. Such information is
based on the Fund's audited financial statements for the years presented.
(1) Computed using average shares outstanding.
(2) These amounts reflect the impact of a waiver of administration fees of
$18,196. Absent the waiver, net investment loss per share, total return and
the ratios of expenses and net investment loss to average net assets for
Class A, Class B and Class C shares would not have changed.
(3) These amounts reflect the impact of a waiver of administration fees of
$30,000. Absent the waiver, net investment loss per share, total return and
the ratios of expenses and net investment loss to average net assets for
Class A, Class B and Class C shares would have been $(.14), $(.31) and
$(.31), respectively, 22.49%, 21.52% and 21.52%, respectively, 1.6%, 2.4%
and 2.4%, respectively, and (0.7)%, (1.5)% and (1.5)%, respectively.
(4) Total return measures the change in the value of an investment during each
of the years presented and does not include the impact of paying any
applicable front- end or contingent deferred sales charge.
(5) Inception date for Class B and Class C is January 3, 1994.
(6) Annualized.
(7) Not annualized.
See Notes to Financial Statements 23
<PAGE>
Phoenix-Engemann Growth Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
----------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
6/30/99 ----------------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994(5)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 25.49 $ 19.61 $ 21.40 $ 18.99 $ 15.28 $ 15.89
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) (0.25)(1) (0.32)(1) (0.34)(1)(2) (0.31)(1)(3) (0.20)(1) (0.14)(1)
Net realized and unrealized
gain (loss) 3.89 7.41 3.41 4.39 4.21 (0.47)
------------ --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 3.64 7.09 3.07 4.08 4.01 (0.61)
------------ --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net
investment income -- -- -- -- -- --
Dividends from net realized
gains -- (1.21) (4.86) (1.67) (0.30) --
------------ --------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS -- (1.21) (4.86) (1.67) (0.30) --
------------ --------- --------- --------- --------- ---------
Change in net asset value 3.64 5.88 (1.79) 2.41 3.71 (0.61)
------------ --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 29.13 $ 25.49 $ 19.61 $ 21.40 $ 18.99 $ 15.28
------------ --------- --------- --------- --------- ---------
------------ --------- --------- --------- --------- ---------
Total return(4) 14.28%(7) 36.38% 15.13%(2) 21.52%(3) 26.26% (3.84)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $40,254 $34,580 $29,222 $27,239 $20,497 $6,136
RATIO TO AVERAGE NET ASSETS
OF:
Operating expenses 2.30%(6) 2.33% 2.4%(2) 2.3%(3) 2.4% 2.3%
Net investment income (loss) (1.83)%(6) (1.47)% (1.5)%(2) (1.5)%(3) (1.1)% (1.0)%
Portfolio turnover 27%(7) 119% 70.6% 70.1% 65.9% 53.8%
</TABLE>
The table above provides condensed information concerning income and capital
changes for one share of the Phoenix-Engemann Growth Fund. Such information is
based on the Fund's audited financial statements for the years presented.
(1) Computed using average shares outstanding.
(2) These amounts reflect the impact of a waiver of administration fees of
$18,196. Absent the waiver, net investment loss per share, total return and
the ratios of expenses and net investment loss to average net assets for
Class A, Class B and Class C shares would not have changed.
(3) These amounts reflect the impact of a waiver of administration fees of
$30,000. Absent the waiver, net investment loss per share, total return and
the ratios of expenses and net investment loss to average net assets for
Class A, Class B and Class C shares would have been $(.14), $(.31) and
$(.31), respectively, 22.49%, 21.52% and 21.52%, respectively, 1.6%, 2.4%
and 2.4%, respectively, and (0.7)%, (1.5)% and (1.5)%, respectively.
(4) Total return measures the change in the value of an investment during each
of the years presented and does not include the impact of paying any
applicable front- end or contingent deferred sales charge.
(5) Inception date for Class B and Class C is January 3, 1994.
(6) Annualized.
(7) Not annualized.
24 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Nifty Fifty Fund
INVESTMENTS AT JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C> <C>
COMMON STOCKS--98.4%
BANKS (MAJOR REGIONAL)--3.1%
State Street Corp....................... 25,000 $ 2,134,375
Wells Fargo Co.......................... 269,400 11,516,850
-------------
13,651,225
-------------
BEVERAGES (NON-ALCOHOLIC)--1.0%
Coca-Cola Co. (The)..................... 69,850 4,365,625
COMMUNICATIONS EQUIPMENT--7.9%
Lucent Technologies, Inc................ 280,000 18,882,500
Tellabs, Inc.(b)........................ 240,000 16,215,000
-------------
35,097,500
-------------
COMPUTERS (HARDWARE)--2.2%
International Business Machines Corp.... 34,000 4,394,500
Sun Microsystems, Inc.(b)............... 80,000 5,510,000
-------------
9,904,500
-------------
COMPUTERS (NETWORKING)--4.3%
Cisco Systems, Inc.(b).................. 295,874 19,083,873
COMPUTERS (PERIPHERALS)--4.2%
EMC Corp.(b)............................ 340,000 18,700,000
COMPUTERS (SOFTWARE & SERVICES)--9.8%
America Online, Inc.(b)................. 126,000 13,923,000
BMC Software, Inc.(b)................... 120,000 6,480,000
Compuware Corp.(b)...................... 114,000 3,626,625
Microsoft Corp.(b)...................... 218,800 19,733,025
-------------
43,762,650
-------------
CONSUMER FINANCE--4.1%
Countrywide Credit Industries, Inc...... 105,000 4,488,750
MBNA Corp............................... 450,000 13,781,250
-------------
18,270,000
-------------
ELECTRICAL EQUIPMENT--2.9%
General Electric Co..................... 115,000 12,995,000
ELECTRONICS (SEMICONDUCTORS)--9.6%
Intel Corp.............................. 223,000 13,268,500
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C> <C>
ELECTRONICS (SEMICONDUCTORS)--CONTINUED
Texas Instruments, Inc.................. 204,000 $ 29,580,000
-------------
42,848,500
-------------
ENTERTAINMENT--1.8%
Time Warner, Inc........................ 65,000 4,777,500
Walt Disney Co. (The)................... 111,600 3,438,675
-------------
8,216,175
-------------
FINANCIAL (DIVERSIFIED)--7.2%
American Express Co..................... 40,000 5,205,000
Citigroup, Inc.......................... 225,000 10,687,500
Freddie Mac............................. 168,250 9,758,500
Morgan Stanley Dean Witter & Co......... 60,000 6,150,000
-------------
31,801,000
-------------
HEALTH CARE (DIVERSIFIED)--1.0%
Warner-Lambert Co....................... 65,000 4,509,375
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--7.0%
Merck & Co., Inc........................ 166,600 12,328,400
Pfizer, Inc............................. 121,950 13,384,012
Schering-Plough Corp.................... 100,000 5,300,000
-------------
31,012,412
-------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--2.7%
Guidant Corp.(b)........................ 65,000 3,343,437
Medtronic, Inc.......................... 111,300 8,667,487
-------------
12,010,924
-------------
INSURANCE (MULTI-LINE)--1.9%
American International Group, Inc....... 71,000 8,311,438
INVESTMENT BANKING/BROKERAGE--2.6%
Goldman Sachs Group, Inc. (The)......... 32,000 2,312,000
Merrill Lynch & Co., Inc................ 116,000 9,272,750
-------------
11,584,750
-------------
INVESTMENT MANAGEMENT--0.3%
Price (T. Rowe) Associates, Inc......... 40,000 1,535,000
LODGING-HOTELS--2.1%
Carnival Corp........................... 189,700 9,200,450
</TABLE>
See Notes to Financial Statements 25
<PAGE>
Phoenix-Engemann Nifty Fifty Fund
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C> <C>
MANUFACTURING (DIVERSIFIED)--0.6%
United Technologies Corp................ 40,000 $ 2,867,500
PERSONAL CARE--1.8%
Avon Products, Inc...................... 85,000 4,717,500
Gillette Co. (The)...................... 83,600 3,427,600
-------------
8,145,100
-------------
RETAIL (BUILDING SUPPLIES)--4.3%
Home Depot, Inc. (The).................. 205,000 13,209,688
Lowe's Companies, Inc................... 100,300 5,685,756
-------------
18,895,444
-------------
RETAIL (DEPARTMENT STORES)--0.7%
Kohl's Corp.(b)......................... 40,000 3,087,500
RETAIL (DRUG STORES)--1.3%
Walgreen Co............................. 190,000 5,581,250
RETAIL (GENERAL MERCHANDISE)--3.2%
Dayton Hudson Corp...................... 75,000 4,875,000
Wal-Mart Stores, Inc.................... 195,000 9,408,750
-------------
14,283,750
-------------
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C> <C>
RETAIL (SPECIALTY)--0.9%
Staples, Inc.(b)........................ 123,750 $ 3,828,516
SERVICES (ADVERTISING/MARKETING)--1.2%
Interpublic Group of Companies, Inc.
(The)................................... 60,000 5,197,500
SERVICES (COMMERCIAL & CONSUMER)--1.5%
Cendant Corp.(b)........................ 325,500 6,672,750
SERVICES (COMPUTER SYSTEMS)--1.1%
Electronic Data Systems Corp............ 85,000 4,807,813
TELECOMMUNICATIONS (LONG DISTANCE)--6.1%
MCI WorldCom, Inc.(b)................... 315,000 27,168,750
- ------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $231,568,973) 437,396,270
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS--98.4%
(IDENTIFIED COST $231,568,973) 437,396,270(a)
Cash and receivables, less liabilities--1.6% 7,119,841
--------------
NET ASSETS--100.0% $ 444,516,111
--------------
--------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $205,958,059 and gross
depreciation of $3,475,384 for federal income tax purposes. At June 30,
1999, the aggregate cost of securities for federal income tax purposes was
$234,913,595.
(b) Non-income producing.
26
See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Nifty Fifty Fund
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $231,568,973) $ 437,396,270
Cash 7,077,565
Receivables
Investment securities sold 2,862,324
Fund shares sold 727,425
Dividends and interest 176,341
--------------
Total assets 448,239,925
--------------
LIABILITIES
Payables
Investment securities purchased 2,123,936
Fund shares repurchased 551,186
Distribution fee 572,970
Investment advisory fee 279,929
Administration fee 176,497
Accrued expenses 19,296
--------------
Total liabilities 3,723,814
--------------
NET ASSETS $ 444,516,111
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 202,925,959
Undistributed net investment loss (2,569,057)
Accumulated net realized gain 38,331,912
Net unrealized appreciation 205,827,297
--------------
NET ASSETS $ 444,516,111
--------------
--------------
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $271,540,832) 6,259,931
Net asset value per share $43.38
Offering price per share $43.38/(1-4.75%) $45.54
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $116,273,308) 2,805,788
Net asset value and offering price per share $41.44
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $56,701,971) 1,368,332
Net asset value and offering price per share $41.44
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 1,015,215
Interest 283,122
--------------
Total investment income 1,298,337
--------------
EXPENSES
Investment advisory fee 1,673,995
Distribution fee, Class A 317,262
Distribution fee, Class B 530,644
Distribution fee, Class C 261,807
Administration 1,055,545
Professional 20,868
Trustees 7,273
--------------
Total expenses 3,867,394
--------------
NET INVESTMENT LOSS (2,569,057)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 21,283,899
Net change in unrealized appreciation (depreciation) on
investments 26,747,882
--------------
NET GAIN ON INVESTMENTS 48,031,781
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 45,462,724
--------------
--------------
</TABLE>
See Notes to Financial Statements 27
<PAGE>
Phoenix-Engemann Nifty Fifty Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/99 Year Ended
(Unaudited) 12/31/98
------------- -------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (2,569,057) $ (2,852,205)
Net realized gain (loss) 21,283,899 24,005,577
Net change in unrealized appreciation
(depreciation) 26,747,882 76,678,083
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 45,462,724 97,831,455
------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A -- (3,938,869)
Net realized gains, Class B -- (1,688,560)
Net realized gains, Class C -- (844,698)
------------- -------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS -- (6,472,127)
------------- -------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (815,488
and 1,393,163 shares, respectively) 33,397,106 45,389,712
Net asset value of shares issued from
reinvestment of distributions
(0 and 94,125 shares, respectively) -- 3,589,938
Cost of shares repurchased (613,419
and 1,467,112 shares, respectively) (25,424,907) (47,556,423)
------------- -------------
Total 7,972,199 1,423,227
------------- -------------
CLASS B
Proceeds from sales of shares (386,923
and 498,534 shares, respectively) 15,291,980 15,592,450
Net asset value of shares issued from
reinvestment of distributions
(0 and 40,281 shares, respectively) -- 1,473,476
Cost of shares repurchased (187,631
and 341,912 shares, respectively) (7,413,218) (10,575,072)
------------- -------------
Total 7,878,762 6,490,854
------------- -------------
CLASS C
Proceeds from sales of shares (216,965
and 213,942 shares, respectively) 8,618,837 6,658,822
Net asset value of shares issued from
reinvestment of distributions
(0 and 20,953 shares, respectively) -- 766,453
Cost of shares repurchased (149,482
and 342,357 shares, respectively) (5,865,677) (10,440,823)
------------- -------------
Total 2,753,160 (3,015,548)
------------- -------------
CLASS M
Proceeds from sales of shares (0 and
3,392 shares, respectively) -- 100,100
Net asset value of shares issued from
reinvestment of distributions
(0 and 0 shares, respectively) -- --
Cost of shares repurchased (0 and
3,392 shares, respectively) -- (111,184)
------------- -------------
Total -- (11,084)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 18,604,121 4,887,449
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS 64,066,845 96,246,777
NET ASSETS
Beginning of period 380,449,266 284,202,489
------------- -------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME
(LOSS) OF ($2,569,057) AND $0,
RESPECTIVELY] $ 444,516,111 $ 380,449,266
------------- -------------
------------- -------------
</TABLE>
28 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Nifty Fifty Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/99 -----------------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994(5)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $38.80 $29.21 $26.50 $22.18 $17.30 $17.12
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) (0.19) (0.20)(1) (0.20)(1)(2) (0.12)(1)(3) (0.05)(1) (0.03)(1)
Net realized and unrealized
gain (loss) 4.77 10.45 5.23 6.00 4.93 0.21
------------ --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 4.58 10.25 5.03 5.88 4.88 0.18
------------ --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net
investment income -- -- -- -- -- --
Dividends from net realized
gains -- (0.66) (2.32) (1.56) -- --
------------ --------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS -- (0.66) (2.32) (1.56) -- --
------------ --------- --------- --------- --------- ---------
Change in net asset value 4.58 9.59 2.71 4.32 4.88 0.18
------------ --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $43.38 $38.80 $29.21 $26.50 $22.18 $17.30
------------ --------- --------- --------- --------- ---------
------------ --------- --------- --------- --------- ---------
Total return(4) 11.80%(7) 35.13% 19.23%(2) 26.53%(3) 28.21% 1.05%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $271,541 $235,065 $176,378 $145,469 $122,322 $100,596
RATIO TO AVERAGE NET ASSETS
OF:
Operating expenses 1.59%(6) 1.60% 1.6%(2) 1.7%(3) 1.9% 1.9%
Net investment income (loss) (0.96)%(6) (0.61)% (0.7)%(2) (0.4)%(3) (0.3)% (0.2)%
Portfolio turnover 29%(7) 92% 68.8% 41.9% 26.5% 23.2%
</TABLE>
The table above provides condensed information concerning income and
capital changes for one share of the Phoenix-Engemann Nifty Fifty Fund.
Such information is based on the Fund's audited financial statements for
the years presented.
(1) Computed using average shares outstanding.
(2) These amounts reflect the impact of a waiver of administration fees of
$42,459. Absent the waiver, net investment loss per share, total return and
the ratios of expenses and net investment loss to average net assets for
Class A, Class B and Class C shares would have been $(.20), $(.42) and
$(.42), respectively, 19.23%, 18.33% and 18.33%, respectively, 1.6%, 2.4%
and 2.4%, respectively, and (0.7)%, (1.5)% and (1.5)%, respectively.
(3) These amounts reflect the impact of a waiver of administration fees of
$70,000. Absent the waiver, net investment loss per share, total return and
the ratios of expenses and net investment loss to average net assets for
Class A, Class B and Class C shares would have been $(.13), $(.31) and
$(.31), respectively, 26.48%, 25.55% and 25.55%, respectively, 1.8%, 2.5%
and 2.5%, respectively, and (0.5)%, (1.3)% and (1.3)%, respectively.
(4) Total return measures the change in the value of an investment during each
of the years presented and does not include the impact of paying any
applicable front- end or contingent deferred sales charge.
(5) Inception date for Class B and Class C is January 3, 1994.
(6) Annualized.
(7) Not annualized.
See Notes to Financial Statements
29
<PAGE>
Phoenix-Engemann Nifty Fifty Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/99 -----------------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994(5)
<C> <S> <C> <C> <C>
Net asset value, beginning of
period $37.21 $28.24 $25.88 $21.85 $17.17 $17.02
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) (0.32) (0.43)(1) (0.42)(1)(2) (0.30)(1)(3) (0.21)(1) (0.14)(1)
Net realized and unrealized
gain (loss) 4.55 10.06 5.10 5.89 4.89 0.29
------------ --------- -------- -------- -------- -------
TOTAL FROM INVESTMENT
OPERATIONS 4.23 9.63 4.68 5.59 4.68 0.15
------------ --------- -------- -------- -------- -------
LESS DISTRIBUTIONS
Dividends from net
investment income -- -- -- -- -- --
Dividends from net realized
gains -- (0.66) (2.32) (1.56) -- --
------------ --------- -------- -------- -------- -------
TOTAL DISTRIBUTIONS -- (0.66) (2.32) (1.56) -- --
------------ --------- -------- -------- -------- -------
Change in net asset value 4.23 8.97 2.36 4.03 4.68 0.15
------------ --------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $41.44 $37.21 $28.24 $25.88 $21.85 $17.17
------------ --------- -------- -------- -------- -------
------------ --------- -------- -------- -------- -------
Total return(4) 11.37%(7) 34.14% 18.33%(2) 25.60%(3) 27.26% 0.88%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $116,273 $96,983 $68,051 $47,143 $27,462 $6,722
RATIO TO AVERAGE NET ASSETS
OF:
Operating expenses 2.34%(6) 2.35% 2.4%(2) 2.5%(3) 2.6% 2.6%
Net investment income (loss) (1.71)%(6) (1.35)% (1.4)%(2) (1.2)%(3) (1.0)% (0.9)%
Portfolio turnover 29%(7) 92% 68.8% 41.9% 26.5% 23.2%
</TABLE>
30 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Nifty Fifty Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
-----------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/99 -----------------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994(5)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $37.21 $28.24 $25.88 $21.85 $17.17 $17.02
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) (0.33) (0.43)(1) (0.42)(1)(2) (0.30)(1)(3) (0.21)(1) (0.15)(1)
Net realized and unrealized
gain (loss) 4.56 10.06 5.10 5.89 4.89 0.30
------------ --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 4.23 9.63 4.68 5.59 4.68 0.15
------------ --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net
investment income -- -- -- -- -- --
Dividends from net realized
gains -- (0.66) (2.32) (1.56) -- --
------------ --------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS -- (0.66) (2.32) (1.56) -- --
------------ --------- --------- --------- --------- ---------
Change in net asset value 4.23 8.97 2.36 4.03 4.68 0.15
------------ --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $41.44 $37.21 $28.24 $25.88 $21.85 $17.17
------------ --------- --------- --------- --------- ---------
------------ --------- --------- --------- --------- ---------
Total return(4) 11.37%(7) 34.14% 18.33%(2) 25.60%(3) 27.26% 0.88%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $56,702 $48,401 $39,773 $26,092 $15,105 $4,283
RATIO TO AVERAGE NET ASSETS
OF:
Operating expenses 2.34%(6) 2.35% 2.4%(2) 2.5%(3) 2.6% 2.6%
Net investment income (loss) (1.71)%(6) (1.35)% (1.4)%(2) (1.2)%(3) (1.0)% (0.9)%
Portfolio turnover 29%(7) 92% 68.8% 41.9% 26.5% 23.2%
</TABLE>
The table above provides condensed information concerning income and
capital changes for one share of the Phoenix-Engemann Nifty Fifty Fund.
Such information is based on the Fund's audited financial statements for
the years presented.
(1) Computed using average shares outstanding.
(2) These amounts reflect the impact of a waiver of administration fees of
$42,459. Absent the waiver, net investment loss per share, total return and
the ratios of expenses and net investment loss to average net assets for
Class A, Class B and Class C shares would have been $(.20), $(.42) and
$(.42), respectively, 19.23%, 18.33% and 18.33%, respectively, 1.6%, 2.4%
and 2.4%, respectively, and (0.7)%, (1.5)% and (1.5)%, respectively.
(3) These amounts reflect the impact of a waiver of administration fees of
$70,000. Absent the waiver, net investment loss per share, total return and
the ratios of expenses and net investment loss to average net assets for
Class A, Class B and Class C shares would have been $(.13), $(.31) and
$(.31), respectively, 26.48%, 25.55% and 25.55%, respectively, 1.8%, 2.5%
and 2.5%, respectively, and (0.5)%, (1.3)% and (1.3)%, respectively.
(4) Total return measures the change in the value of an investment during each
of the years presented and does not include the impact of paying any
applicable front- end or contingent deferred sales charge.
(5) Inception date for Class B and Class C is January 3, 1994.
(6) Annualized.
(7) Not annualized.
See Notes to Financial Statements
31
<PAGE>
Phoenix-Engemann Small & Mid-Cap Growth Fund
INVESTMENTS AT JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C> <C>
COMMON STOCKS--89.6%
AIR FREIGHT--0.9%
Expeditors International of Washington,
Inc..................................... 40,000 $ 1,090,000
BIOTECHNOLOGY--1.3%
Biomatrix, Inc.(b)...................... 40,000 865,000
Coulter Pharmaceutical, Inc.(b)......... 30,000 676,875
Trimeris, Inc.(b)....................... 5,300 76,850
-------------
1,618,725
-------------
COMMUNICATIONS EQUIPMENT--2.7%
Advanced Fibre Communications,
Inc.(b)................................. 85,000 1,328,125
Ditech Communications Corp.(b).......... 30,000 600,000
Ortel Corp.(b).......................... 125,000 1,328,125
-------------
3,256,250
-------------
COMPUTERS (NETWORKING)--0.6%
Juniper Networks, Inc.(b)............... 5,000 745,000
COMPUTERS (SOFTWARE & SERVICES)--14.9%
Abacus Direct Corp.(b).................. 35,000 3,202,500
Broadcast.com, Inc.(b).................. 11,300 1,509,256
Concentric Network Corp.(b)............. 44,000 1,749,000
CyberSource Corp.(b).................... 40,000 590,000
Inktomi Corp.(b)........................ 4,000 522,250
International Network Services(b)....... 20,000 807,500
Legato Systems, Inc.(b)................. 30,000 1,732,500
Network Solutions, Inc.(b).............. 23,000 1,819,875
New Era of Networks, Inc.(b)............ 38,000 1,669,625
Peregrine Systems, Inc.(b).............. 95,000 2,440,312
Sapient Corp.(b)........................ 23,000 1,302,375
Verio, Inc.(b).......................... 12,500 868,750
-------------
18,213,943
-------------
CONSUMER FINANCE--5.0%
Metris Companies, Inc................... 150,000 6,112,500
DISTRIBUTORS (FOOD & HEALTH)--2.6%
Schein (Henry), Inc.(b)................. 70,000 2,218,125
Smart & Final, Inc...................... 96,500 1,013,250
-------------
3,231,375
-------------
ELECTRICAL EQUIPMENT--3.0%
Advanced Energy Industries, Inc.(b)..... 50,000 2,028,125
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C> <C>
ELECTRICAL EQUIPMENT--CONTINUED
Flextronics International Ltd.(b)....... 30,000 $ 1,665,000
-------------
3,693,125
-------------
ELECTRONICS (INSTRUMENTATION)--0.6%
Meade Instruments Corp.(b).............. 40,000 690,000
ELECTRONICS (SEMICONDUCTORS)--9.8%
Applied Micro Circuits Corp.(b)......... 37,800 3,109,050
Conexant Systems, Inc.(b)............... 43,000 2,496,687
Maker Communications, Inc.(b)........... 8,000 248,000
Micrel, Inc.(b)......................... 38,000 2,812,000
Vitesse Semiconductor Corp.(b).......... 50,000 3,371,875
-------------
12,037,612
-------------
EQUIPMENT (SEMICONDUCTOR)--1.5%
Cymer, Inc.(b).......................... 73,000 1,825,000
FINANCIAL (DIVERSIFIED)--1.2%
Federal Agricultural Mortgage Corp.
Class C(b).............................. 21,000 1,441,125
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--1.8%
Championship Auto Racing Teams,
Inc.(b)................................. 74,000 2,215,375
HEALTH CARE (DIVERSIFIED)--0.1%
United Therapeutics Corp.(b)............ 10,500 124,688
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.6%
Inhale Therapeutic Systems, Inc.(b)..... 30,000 714,375
HEALTH CARE (GENERIC AND OTHER)--1.1%
Sepracor, Inc.(b)....................... 16,000 1,300,000
HEALTH CARE (HOSPITAL MANAGEMENT)--1.5%
Health Management Associates, Inc. Class
A(b).................................... 166,500 1,873,125
HEALTH CARE (SPECIALIZED SERVICES)--1.8%
ALZA Corp.(b)........................... 30,000 1,526,250
Omnicare, Inc........................... 55,000 694,375
-------------
2,220,625
-------------
INVESTMENT BANKING/BROKERAGE--2.1%
Ameritrade Holding Corp. Class A(b)..... 12,000 1,272,000
Investment Technology Group, Inc........ 20,000 647,500
Jefferies Group, Inc.................... 20,000 600,000
-------------
2,519,500
-------------
</TABLE>
32 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Small & Mid-Cap Growth Fund
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C> <C>
INVESTMENT MANAGEMENT--1.4%
Gabelli Asset Management, Inc. Class
A(b).................................... 110,000 $ 1,739,375
OIL & GAS (EXPLORATION & PRODUCTION)--2.6%
Pinnacle Oil International, Inc.(b)..... 224,500 3,157,031
RAILROADS--2.0%
Kansas City Southern Industries, Inc.... 38,000 2,424,875
RESTAURANTS--2.3%
Cheesecake Factory, Inc. (The)(b)....... 93,000 2,836,500
RETAIL (BUILDING SUPPLIES)--2.1%
Fastenal Co............................. 50,000 2,621,875
RETAIL (DISCOUNTERS)--2.5%
99 Cents Only Stores(b)................. 62,500 3,121,094
RETAIL (FOOD CHAINS)--3.9%
Whole Foods Market, Inc.(b)............. 100,000 4,806,250
RETAIL (SPECIALTY)--10.9%
Claire's Stores, Inc.................... 170,000 4,356,250
Cost Plus, Inc.(b)...................... 101,850 4,634,175
Lithia Motors, Inc. Class A(b).......... 55,000 1,127,500
Restoration Hardware, Inc.(b)........... 113,000 1,511,375
Sonic Automotive, Inc.(b)............... 124,500 1,711,875
-------------
13,341,175
-------------
SERVICES (COMMERCIAL & CONSUMER)--4.7%
Corporate Executive Board Co.
(The)(b)................................ 42,000 1,493,625
MIPS Technologies, Inc. Class A......... 47,800 2,291,413
NCO Group, Inc.(b)...................... 53,000 2,014,000
-------------
5,799,038
-------------
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C> <C>
SERVICES (COMPUTER SYSTEMS)--1.8%
Whittman-Hart, Inc.(b).................. 68,000 $ 2,159,000
TELECOMMUNICATIONS (LONG DISTANCE)--1.8%
Network Plus Corp.(b)................... 40,000 835,000
WinStar Communications, Inc.(b)......... 28,000 1,365,000
-------------
2,200,000
-------------
TEXTILES (APPAREL)--0.5%
bebe Stores, Inc........................ 17,500 595,000
- ------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $79,358,968) 109,723,556
- ------------------------------------------------------------------------------
FOREIGN COMMON STOCKS--3.6%
COMMUNICATIONS EQUIPMENT--0.8%
Research in Motion Ltd. (Canada)(b)..... 50,000 998,277
COMPUTERS (SOFTWARE & SERVICES)--1.1%
Fundtech Ltd. (Israel)(b)............... 50,000 1,296,875
OIL & GAS (EXPLORATION & PRODUCTION)--1.7%
Encal Energy Ltd. (Canada)(b)........... 430,000 2,106,348
- ------------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $3,829,800) 4,401,500
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS--93.2%
(IDENTIFIED COST $83,188,768) 114,125,056(a)
Cash and receivables, less liabilities--6.8% 8,286,154
--------------
NET ASSETS--100.0% $ 122,411,210
--------------
--------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $35,202,450 and gross
depreciation of $4,609,854 for federal income tax purposes. At June 30,
1999, the aggregate cost of securities for federal income tax purposes was
$83,532,460.
(b) Non-income producing.
See Notes to Financial Statements
33
<PAGE>
Phoenix-Engemann Small & Mid-Cap Growth Fund
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $83,188,768) $ 114,125,056
Cash 8,390,021
Receivables
Investment securities sold 929,181
Fund shares sold 309,965
Dividends and interest 39,673
--------------
Total assets 123,793,896
--------------
LIABILITIES
Payables
Investment securities purchased 769,675
Fund shares repurchased 294,710
Distribution fee 161,263
Investment advisory fee 84,149
Administration fee 50,514
Trustees' fee 4,035
Accrued expenses 18,340
--------------
Total liabilities 1,382,686
--------------
NET ASSETS $ 122,411,210
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 103,168,085
Undistributed net investment loss (907,499)
Accumulated net realized loss (10,785,664)
Net unrealized appreciation 30,936,288
--------------
NET ASSETS $ 122,411,210
--------------
--------------
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $67,041,655) 2,638,673
Net asset value per share $25.41
Offering price per share $25.41/(1-4.75%) $26.68
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $37,132,512) 1,493,994
Net asset value and offering price per share $24.85
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $18,237,043) 734,304
Net asset value and offering price per share $24.84
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 147,465
Dividends 30,486
--------------
Total investment income 177,951
--------------
EXPENSES
Investment advisory fee 493,922
Distribution fee, Class A 71,559
Distribution fee, Class B 158,482
Distribution fee, Class C 76,222
Administration 285,265
Professional 13,518
Trustees 7,273
--------------
Total expenses 1,106,241
Less expenses borne by investment adviser (20,791)
--------------
Net expenses 1,085,450
--------------
NET INVESTMENT LOSS (907,499)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 230,593
Net realized loss on foreign currency transactions (1,903)
Net change in unrealized appreciation (depreciation)
on investments 7,493,433
--------------
NET GAIN ON INVESTMENTS 7,722,123
--------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATION $ 6,814,624
--------------
--------------
</TABLE>
34 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Small & Mid-Cap Growth Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/99 Year Ended
(Unaudited) 12/31/98
------------- -------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (907,499) $ (1,330,768)
Net realized gain (loss) 228,690 (10,303,702)
Net change in unrealized appreciation
(depreciation) 7,493,433 22,375,638
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 6,814,624 10,741,168
------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
In excess of accumulated net realized
gains, Class A -- (48,557)
In excess of accumulated net realized
gains, Class B -- (28,857)
In excess of accumulated net realized
gains, Class C -- (13,819)
------------- -------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS -- (91,233)
------------- -------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (996,674
and 1,832,747 shares, respectively) 22,851,935 39,721,245
Net asset value of shares issued from
reinvestment of distributions
(0 and 2,097 shares, respectively) -- 46,145
Cost of shares repurchased (608,329
and 901,103 shares, respectively) (13,768,084) (19,287,058)
------------- -------------
Total 9,083,851 20,480,332
------------- -------------
CLASS B
Proceeds from sales of shares (339,390
and 776,437 shares, respectively) 7,535,288 16,692,888
Net asset value of shares issued from
reinvestment of distributions
(0 and 1,267 shares, respectively) -- 27,357
Cost of shares repurchased (183,260
and 268,731 shares, respectively) (4,059,384) (5,454,844)
------------- -------------
Total 3,475,904 11,265,401
------------- -------------
CLASS C
Proceeds from sales of shares (211,146
and 389,879 shares, respectively) 4,692,748 8,174,670
Net asset value of shares issued from
reinvestment of distributions
(0 and 580 shares, respectively) -- 12,526
Cost of shares repurchased (112,703
and 141,833 shares, respectively) (2,496,464) (2,899,692)
------------- -------------
Total 2,196,284 5,287,504
------------- -------------
CLASS M
Proceeds from sales of shares (0 and
5,260 shares, respectively) -- 110,536
Net asset value of shares issued from
reinvestment of distributions
(0 and 0 shares, respectively) -- --
Cost of shares repurchased (0 and
5,260 shares, respectively) -- (102,183)
------------- -------------
Total -- 8,353
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 14,756,039 37,041,590
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS 21,570,663 47,691,525
NET ASSETS
Beginning of period 100,840,547 53,149,022
------------- -------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($907,499) AND $0, RESPECTIVELY] $122,411,210 $100,840,547
------------- -------------
------------- -------------
</TABLE>
See Notes to Financial Statements 35
<PAGE>
Phoenix-Engemann Small & Mid-Cap Growth Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------------------------------------------
SIX MONTHS INCEPTION
ENDED YEAR ENDED DECEMBER 31 10/10/94
6/30/99 ---------------------------------------------------------------- THROUGH
(UNAUDITED) 1998 1997 1996 1995 12/31/94
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 24.08 $ 21.09 $ 18.39 $ 14.90 $ 12.07 $ 10.00
INCOME FROM INVESTMENT
OPERATIONS
Net investment
income (loss) (0.16)(1)(7) (0.30)(1)(7) (0.31)(1)(2) (0.12)(1)(3) 0.22(1)(3) 0.07(1)(3)
Net realized and
unrealized gain
(loss) 1.49 3.31 5.07 7.45 2.87 2.00
----- ----- ----- ----- ----- -----
TOTAL FROM
INVESTMENT
OPERATIONS 1.33 3.01 4.76 7.33 3.09 2.07
----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net
investment income -- -- -- (0.28) (0.08) --
Dividends from net
realized gains -- -- (2.06) (3.56) (0.18) --
In excess of
accumulated net
realized gains -- (0.02) -- -- -- --
----- ----- ----- ----- ----- -----
TOTAL
DISTRIBUTIONS -- (0.02) (2.06) (3.84) (0.26) --
----- ----- ----- ----- ----- -----
Change in net asset
value 1.33 2.99 2.70 3.49 2.83 2.07
----- ----- ----- ----- ----- -----
NET ASSET VALUE, END
OF PERIOD $ 25.41 $ 24.08 $ 21.09 $ 18.39 $ 14.90 $ 12.07
----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- -----
Total return(4) 5.52%(8) 14.29% 26.41%(2) 52.37%(3) 25.68%(3) 20.70%(3)
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (thousands) $67,042 $54,187 $27,771 $7,859 $1,742 $121
RATIO TO AVERAGE NET
ASSETS OF:
Operating expenses 1.75%(5) 1.78% 1.80%(2) 1.10%(3) --%(3) --%(5)
Net investment
income (loss) (1.41)%(5) (1.39)% (1.40)%(2) (0.70)%(3) 1.50%(3) 2.60%(5)
Portfolio turnover 67%(8) 147% 313.5% 297.1% 121.4% 157.9%
</TABLE>
36 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Small & Mid-Cap Growth Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/99 ----------------------------------------------
(UNAUDITED) 1998 1997 1996
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 23.64 $ 20.87 $ 18.35 $ 16.44(6)
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) (0.24)(1)(7) (0.45)(1)(7) (0.46)(1)(2) (0.32)(1)
Net realized and unrealized
gain (loss) 1.45 3.24 5.04 2.43
----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS 1.21 2.79 4.58 2.11
----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net
investment income -- -- -- --
Dividends from net realized
gains -- -- (2.06) (0.20)
In excess of accumulated net
realized gains -- (0.02) -- --
----- ----- ----- -----
TOTAL DISTRIBUTIONS -- (0.02) (2.06) (0.20)
----- ----- ----- -----
Change in net asset value 1.21 2.77 2.52 1.91
----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 24.85 $ 23.64 $ 20.87 $ 18.35
----- ----- ----- -----
----- ----- ----- -----
Total return(4) 5.12%(8) 13.39% 25.49%(2) 12.84%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $37,133 $31,631 $17,298 $1,480
RATIO TO AVERAGE NET ASSETS
OF:
Operating expenses 2.49%(5) 2.53% 2.60%(2) 2.60%(5)
Net investment income (loss) (2.16)%(5) (2.14)% (2.10)%(2) (2.20)%(5)
Portfolio turnover 67%(8) 147% 313.5% 297.1%
</TABLE>
The table above provides condensed information concerning income and
capital changes for one share of the Phoenix-Engemann Small & Mid-Cap
Growth Fund. Such information is based on the Fund's audited financial
statements for the years presented.
(1) Computed using average shares outstanding.
(2) These amounts reflect the impact of a waiver of administration fees of
$1,128. Absent the waiver, net investment loss per share, total return and
the ratios of expenses and net investment loss to average net assets for
Class A, Class B and Class C shares would have been $(.31), $(.46) and
$(.47), respectively, 26.41%, 25.49% and 25.49%, respectively, and 1.8%,
2.6% and 2.6%, respectively, and (1.4)%, (2.1)% and (2.1)%, respectively.
(3) These amounts reflect the impact of a waiver of Manager fees of $18,499,
$13,443, and $585 for the periods ended December 31, 1996, 1995 and 1994,
respectively, and the Manager's reimbursement for income taxes of $6,654
during 1994. Had the waivers and reimbursement not been made, net
investment income (loss) per share, total return (not annualized for the
period ended December 31, 1994) and the ratios of expenses and net
investment income (loss) to average net assets (annualized for the period
ended December 31, 1994) would have been $(.25), 51.35%, 1.9% and (1.4)%,
respectively, $(.11), 23.40%, 2.3% and (0.8)%, respectively, and $(.01),
15.10%, 22.1% (2.3% if only normal and recurring expenses are taken into
account) and (0.4)%, respectively, for the periods ended December 31, 1996,
1995 and 1994, respectively.
(4) Total return measures the change in the value of an investment during each
of the years presented and does not include the impact of paying any
applicable front- end or contingent deferred sales charge. Total return for
the periods ended December 31, 1996 (Class B and Class C only) and December
31, 1994 have not been annualized.
(5) Annualized.
(6) The beginning net asset value per share of Class B and Class C shares
equals the net asset value per share of the Class A shares as of the first
day Class B and Class C shares were sold, September 18, 1996 and October 8,
1996, respectively.
(7) Includes reimbursement of operating expenses by investment adviser of less
than $0.01 and $0.01, respectively.
(8) Not annualized.
See Notes to Financial Statements
37
<PAGE>
Phoenix-Engemann Small & Mid-Cap Growth Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
----------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
6/30/99 ----------------------------------------------
(UNAUDITED) 1998 1997 1996
<C> <S> <C>
Net asset value, beginning of
period $ 23.63 $ 20.87 $ 18.35 $ 17.99(6)
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) (0.24)(1)(7) (0.45)(1)(7) (0.47)(1)(2) (0.29)(1)
Net realized and unrealized
gain (loss) 1.45 3.23 5.05 0.85
----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS 1.21 2.78 4.58 0.56
----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net
investment income -- -- -- --
Dividends from net realized
gains -- -- (2.06) (0.20)
In excess of accumulated net
realized gains -- (0.02) -- --
----- ----- ----- -----
TOTAL DISTRIBUTIONS -- (0.02) (2.06) (0.20)
----- ----- ----- -----
Change in net asset value 1.21 2.76 2.52 0.36
----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 24.84 $ 23.63 $ 20.87 $ 18.35
----- ----- ----- -----
----- ----- ----- -----
Total return(4) 5.12%(8) 13.34% 25.49%(2) 3.12%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $18,237 $15,023 $8,080 $54
RATIO TO AVERAGE NET ASSETS
OF:
Operating expenses 2.49%(5) 2.53% 2.60%(2) 2.60%(5)
Net investment income (loss) (2.16)%(5) (2.14)% (2.10)%(2) (2.20)%(5)
Portfolio turnover 67%(8) 147% 313.5% 297.1%
</TABLE>
The table above provides condensed information concerning income and
capital changes for one share of the Phoenix-Engemann Small & Mid-Cap
Growth Fund. Such information is based on the Fund's audited financial
statements for the years presented.
(1) Computed using average shares outstanding.
(2) These amounts reflect the impact of a waiver of administration fees of
$1,128. Absent the waiver, net investment loss per share, total return and
the ratios of expenses and net investment loss to average net assets for
Class A, Class B and Class C shares would have been $(.31), $(.46) and
$(.47), respectively, 26.41%, 25.49% and 25.49%, respectively, and 1.8%,
2.6% and 2.6%, respectively, and (1.4)%, (2.1)% and (2.1)%, respectively.
(3) These amounts reflect the impact of a waiver of Manager fees of $18,499,
$13,443, and $585 for the periods ended December 31, 1996, 1995 and 1994,
respectively, and the Manager's reimbursement for income taxes of $6,654
during 1994. Had the waivers and reimbursement not been made, net
investment income (loss) per share, total return (not annualized for the
period ended December 31, 1994) and the ratios of expenses and net
investment income (loss) to average net assets (annualized for the period
ended December 31, 1994) would have been $(.25), 51.35%, 1.9% and (1.4)%,
respectively, $(.11), 23.40%, 2.3% and (0.8)%, respectively, and $(.01),
15.10%, 22.1% (2.3% if only normal and recurring expenses are taken into
account) and (0.4)%, respectively, for the periods ended December 31, 1996,
1995 and 1994, respectively.
(4) Total return measures the change in the value of an investment during each
of the years presented and does not include the impact of paying any
applicable front- end or contingent deferred sales charge. Total return for
the periods ended December 31, 1996 (Class B and Class C only) and December
31, 1994 have not been annualized.
(5) Annualized.
(6) The beginning net asset value per share of Class B and Class C shares
equals the net asset value per share of the Class A shares as of the first
day Class B and Class C shares were sold, September 18, 1996 and October 8,
1996, respectively.
(7) Includes reimbursement of operating expenses by investment adviser of less
than $0.01 and $0.01, respectively.
(8) Not annualized.
38
See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Value 25 Fund
INVESTMENTS AT JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMON STOCKS--99.6%
AEROSPACE/DEFENSE--4.3%
Goodrich (B.F.) Co. (The)............... 34,700 $ 1,474,750
AUTO PARTS & EQUIPMENT--12.2%
Dana Corp............................... 27,400 1,262,112
Genuine Parts Co........................ 40,500 1,417,500
TRW, Inc................................ 26,800 1,470,650
------------
4,150,262
------------
AUTOMOBILES--3.8%
Ford Motor Co........................... 23,100 1,303,706
CHEMICALS (DIVERSIFIED)--4.1%
PPG Industries, Inc..................... 23,800 1,405,688
CONSUMER (JEWELRY, NOVELTIES & GIFTS)--4.2%
American Greetings Corp................. 48,000 1,446,000
CONTAINERS & PACKAGING (PAPER)--4.2%
Bemis Co., Inc.......................... 36,000 1,431,000
DISTRIBUTORS (FOOD & HEALTH)--4.5%
SUPERVALU, Inc.......................... 59,200 1,520,700
ENGINEERING & CONSTRUCTION--4.3%
Fluor Corp.............................. 35,800 1,449,900
FOODS--3.8%
ConAgra, Inc............................ 48,400 1,288,650
HEALTH CARE (DIVERSIFIED)--4.5%
Mallinckrodt, Inc....................... 42,000 1,527,750
HOMEBUILDING--3.8%
Fleetwood Enterprises, Inc.............. 48,600 1,284,863
HOUSEHOLD FURNISHINGS & APPLIANCES--4.3%
Whirlpool Corp.......................... 19,900 1,472,600
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
IRON & STEEL--3.5%
USX-U. S. Steel Group................... 44,000 $ 1,188,000
LEISURE TIME (PRODUCTS)--4.7%
Brunswick Corp.......................... 57,200 1,594,450
MACHINERY (DIVERSIFIED)--10.8%
Cooper Industries, Inc.................. 24,900 1,294,800
Milacron, Inc........................... 62,400 1,154,400
Timken Co. (The)........................ 64,000 1,248,000
------------
3,697,200
------------
MANUFACTURING (DIVERSIFIED)--7.5%
Eaton Corp.............................. 14,700 1,352,400
National Service Industries, Inc........ 33,400 1,202,400
------------
2,554,800
------------
OIL & GAS (REFINING & MARKETING)--3.6%
Sunoco, Inc............................. 40,700 1,228,631
PHOTOGRAPHY/IMAGING--3.6%
Eastman Kodak Co........................ 17,900 1,212,725
SPECIALTY PRINTING--4.1%
Donnelley (R.R.) & Sons Co.............. 37,400 1,386,138
TRUCKS & PARTS--3.8%
PACCAR, Inc............................. 24,600 1,313,025
- ----------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $30,014,263) 33,930,838
- ----------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS--99.6%
(IDENTIFIED COST $30,014,263) 33,930,838(a)
Cash and receivables, less liabilities--0.4% 146,976
-------------
NET ASSETS--100.0% $ 34,077,814
-------------
-------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $4,852,618 and gross
depreciation of $938,449 for federal income tax purposes. At June 30, 1999,
the aggregate cost of securities for federal income tax purposes was
$30,016,669.
See Notes to Financial Statements
39
<PAGE>
Phoenix-Engemann Value 25 Fund
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $30,014,263) $ 33,930,838
Cash 219,246
Receivables
Dividends and interest 53,255
Fund shares sold 33,732
--------------
Total assets 34,237,071
--------------
LIABILITIES
Payables
Fund shares repurchased 48,251
Distribution fee 50,411
Investment advisory fee 21,998
Administration fee 16,727
Trustees' fee 4,451
Accrued expenses 17,419
--------------
Total liabilities 159,257
--------------
NET ASSETS $ 34,077,814
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 28,113,578
Undistributed net investment income 48,830
Accumulated net realized gain 1,998,831
Net unrealized appreciation 3,916,575
--------------
NET ASSETS $ 34,077,814
--------------
--------------
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $17,657,950) 1,306,669
Net asset value per share $13.51
Offering price per share $13.51/(1-4.75%) $14.18
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $11,372,694) 846,716
Net asset value and offering price per share $13.43
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $5,047,170) 376,011
Net asset value and offering price per share $13.42
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 457,979
Interest 4,971
--------------
Total investment income 462,950
--------------
EXPENSES
Investment advisory fee 149,469
Distribution fee, Class A 21,613
Distribution fee, Class B 52,755
Distribution fee, Class C 26,774
Administration 99,588
Professional 12,079
Trustees 7,274
--------------
Total expenses 369,552
Less expenses borne by investment adviser (19,353)
--------------
Net expenses 350,199
--------------
NET INVESTMENT INCOME 112,751
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 1,634,918
Net change in unrealized appreciation (depreciation) on
investments 3,140,231
--------------
NET GAIN ON INVESTMENTS 4,775,149
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 4,887,900
--------------
--------------
</TABLE>
40 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Value 25 Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/99 Year Ended
(Unaudited) 12/31/98
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 112,751 $ 334,618
Net realized gain (loss) 1,634,918 2,097,474
Net change in unrealized appreciation
(depreciation) 3,140,231 (352,262)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 4,887,900 2,079,830
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (64,852) (211,860)
Net investment income, Class B (21,120) (57,698)
Net investment income, Class C (8,419) (35,805)
Net investment income, Class M -- (335)
Net realized gains, Class A -- (869,860)
Net realized gains, Class B -- (538,067)
Net realized gains, Class C -- (327,380)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (94,391) (2,041,005)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (89,977
and 447,148 shares, respectively) 1,116,269 5,386,173
Net asset value of shares issued from
reinvestment of distributions
(4,190 and 92,048 shares,
respectively) 56,730 1,040,977
Cost of shares repurchased (341,687
and 673,296 shares, respectively) (4,198,648) (7,993,719)
------------ ------------
Total (3,025,649) (1,566,569)
------------ ------------
CLASS B
Proceeds from sales of shares (64,104
and 297,032 shares, respectively) 796,616 3,568,146
Net asset value of shares issued from
reinvestment of distributions
(970 and 39,114 shares,
respectively) 13,052 439,118
Cost of shares repurchased (165,749
and 151,755 shares, respectively) (1,938,102) (1,790,599)
------------ ------------
Total (1,128,434) 2,216,665
------------ ------------
CLASS C
Proceeds from sales of shares (29,736
and 249,615 shares, respectively) 384,879 2,992,809
Net asset value of shares issued from
reinvestment of distributions
(250 and 30,269 shares,
respectively) 3,360 339,363
Cost of shares repurchased (227,540
and 130,943 shares, respectively) (2,662,307) (1,510,855)
------------ ------------
Total (2,274,068) 1,821,317
------------ ------------
CLASS M
Proceeds from sales of shares (0 and
20,926 shares, respectively) -- 256,291
Net asset value of shares issued from
reinvestment of distributions
(0 and 28 shares, respectively) -- 335
Cost of shares repurchased (0 and
20,954 shares, respectively) -- (263,766)
------------ ------------
Total -- (7,140)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (6,428,151) 2,464,273
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (1,634,642) 2,503,098
NET ASSETS
Beginning of period 35,712,456 33,209,358
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$48,830 AND $30,470, RESPECTIVELY] $34,077,814 $35,712,456
------------ ------------
------------ ------------
</TABLE>
See Notes to Financial Statements 41
<PAGE>
Phoenix-Engemann Value 25 Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31, INCEPTION
6/30/99 ---------------------------- 12/17/96 TO
(UNAUDITED) 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 11.64 $ 11.56 $ 10.11 $ 10.00
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.07(6) 0.15(1)(6) 0.17(1)(2) --(1)
Net realized and unrealized
gain (loss) 1.85 0.66 1.95 0.11
----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS 1.92 0.81 2.12 0.11
----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net
investment income (0.05) (0.14) (0.12) --
Dividends from net realized
gains -- (0.59) (0.55) --
----- ----- ----- -----
TOTAL DISTRIBUTIONS (0.05) (0.73) (0.67) --
----- ----- ----- -----
Change in net asset value 1.87 0.08 1.45 0.11
----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 13.51 $ 11.64 $ 11.56 $ 10.11
----- ----- ----- -----
----- ----- ----- -----
Total return(3) 16.49%(7) 7.23% 21.10%(2) 1.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $17,658 $18,090 $19,518 $482
RATIO TO AVERAGE NET ASSETS
OF:
Operating expenses 1.75%(4) 1.75% 1.80%(2) 1.70%(4)
Net investment income (loss) 1.03%(4) 1.25% 1.40%(2) 1.80%(4)
Portfolio turnover 91%(7) 135% 87.7% --%
</TABLE>
42 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Value 25 Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
6/30/99 ----------------------------
(UNAUDITED) 1998 1997
<S> <C> <C> <C>
Net asset value, beginning of period $ 11.59 $ 11.53 $ 10.39(5)
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.02(6) 0.06(1)(6) 0.08(1)(2)
Net realized and unrealized gain
(loss) 1.85 0.65 1.67
----- ----- -----
TOTAL FROM INVESTMENT OPERATIONS 1.87 0.71 1.75
----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment income (0.03) (0.06) (0.06)
Dividends from net realized gains -- (0.59) (0.55)
----- ----- -----
TOTAL DISTRIBUTIONS (0.03) (0.65) (0.61)
----- ----- -----
Change in net asset value 1.84 0.06 1.14
----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 13.43 $ 11.59 $ 11.53
----- ----- -----
----- ----- -----
Total return(3) 16.09%(7) 6.41% 16.97%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $11,373 $10,981 $8,799
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.50%(4) 2.50% 2.60%(2)
Net investment income (loss) 0.29%(4) 0.54% 0.70%(2)
Portfolio turnover 91%(7) 135% 87.7%
</TABLE>
The table above provides condensed information concerning income and
capital changes for one share of the Phoenix-Engemann Value 25 Fund. Such
information is based on the Fund's audited financial statements for the
years presented.
(1) Computed using average shares outstanding.
(2) These amounts reflect the impact of a waiver of administration fees of
$789. Absent the waiver, net investment loss per share, total return and
the ratios of expenses and net investment loss to average net assets for
Class A, Class B and Class C shares would have been $.17, $.08 and $.08,
respectively, 21.10%, 16.97% and 17.01%, respectively, 1.8%, 2.6% and 2.6%,
respectively, and 1.4%, 0.7% and 0.8%, respectively.
(3) Total return measures the change in the value of an investment during each
of the years presented and does not include the impact of paying any
applicable front- end or contingent deferred sales charge. Total return for
the period from inception (December 17, 1996) through December 31, 1996 has
not been annualized.
(4) Annualized.
(5) The beginning net asset value per share of Class B and Class C shares
equals the net asset value per share of the Class A shares as of the first
day Class B and Class C shares were sold, January 9, 1997.
(6) Includes reimbursement of operating expenses by investment adviser of
$0.01.
(7) Not annualized.
See Notes to Financial Statements
43
<PAGE>
Phoenix-Engemann Value 25 Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
----------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
6/30/99 ----------------------------
(UNAUDITED) 1998 1997
<C> <S> <C>
Net asset value, beginning of period $ 11.58 $ 11.52 $ 10.39(5)
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.02(6) 0.06(1)(6) 0.09(1)(2)
Net realized and unrealized gain
(loss) 1.84 0.65 1.66
----- ----- -----
TOTAL FROM INVESTMENT OPERATIONS 1.86 0.71 1.75
----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment income (0.02) (0.06) (0.07)
Dividends from net realized gains -- (0.59) (0.55)
----- ----- -----
TOTAL DISTRIBUTIONS (0.02) (0.65) (0.62)
----- ----- -----
Change in net asset value 1.84 0.06 1.13
----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 13.42 $ 11.58 $ 11.52
----- ----- -----
----- ----- -----
Total return(3) 16.08%(7) 6.42% 17.01%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $5,047 $6,642 $4,893
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.50%(4) 2.50% 2.60%(2)
Net investment income (loss) 0.32%(4) 0.52% 0.80%(2)
Portfolio turnover 91%(7) 135% 87.7%
</TABLE>
The table above provides condensed information concerning income and
capital changes for one share of the Phoenix-Engemann Value 25 Fund. Such
information is based on the Fund's audited financial statements for the
years presented.
(1) Computed using average shares outstanding.
(2) These amounts reflect the impact of a waiver of administration fees of
$789. Absent the waiver, net investment loss per share, total return and
the ratios of expenses and net investment loss to average net assets for
Class A, Class B and Class C shares would have been $.17, $.08 and $.08,
respectively, 21.10%, 16.97% and 17.01%, respectively, 1.8%, 2.6% and 2.6%,
respectively, and 1.4%, 0.7% and 0.8%, respectively.
(3) Total return measures the change in the value of an investment during each
of the years presented and does not include the impact of paying any
applicable front- end or contingent deferred sales charge. Total return for
the period from inception (December 17, 1996) through December 31, 1996 has
not been annualized.
(4) Annualized.
(5) The beginning net asset value per share of Class B and Class C shares
equals the net asset value per share of the Class A shares as of the first
day Class B and Class C shares were sold, January 9, 1997.
(6) Includes reimbursement of operating expenses by investment adviser of
$0.01.
(7) Not annualized.
44
See Notes to Financial Statements
<PAGE>
PHOENIX-ENGEMANN FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
The Phoenix-Engemann Funds (the "Trust") is organized as a Massachusetts
business trust and is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment company. To date, six
Funds are offered for sale: Phoenix-Engemann Balanced Return Fund,
Phoenix-Engemann Global Growth Fund, Phoenix-Engemann Growth Fund, Phoenix-
Engemann Nifty Fifty Fund, Phoenix-Engemann Small & Mid-Cap Growth Fund and
Phoenix-Engemann Value 25 Fund, collectively referred to as the "Funds," are
series of The Phoenix-Engemann Funds. Each Fund represents an investment in a
separate diversified fund with its own investment objectives. BALANCED RETURN
FUND seeks to maximize a total investment return consistent with reasonable risk
through a balanced approach. GLOBAL GROWTH FUND seeks to achieve long-term
growth of capital by investing in a globally diversified portfolio of equity
securities. GROWTH FUND seeks to achieve long-term capital appreciation. NIFTY
FIFTY FUND seeks to achieve long-term capital appreciation by investing in
approximately 50 different securities. SMALL & MID-CAP GROWTH FUND seeks to
achieve long-term growth of capital by investing primarily in a diversified
portfolio of equity securities of companies with market capitalizations below
$1.5 billion. VALUE 25 FUND seeks to achieve dividend income and long-term
growth of capital by investing in equity securities which the Adviser believes
offer the best potential for current dividend yield and long-term capital
appreciation.
Each Fund offers Class A, Class B and Class C shares. Class M shares have been
closed. Class A shares are sold with a front-end sales charge of up to 4.75%.
Class B shares are sold with a contingent deferred sales charge which declines
from 5% to zero depending on the period of time the shares are held. Class C
shares are sold with a 1% contingent deferred sales charge if redeemed within
one year of purchase. All classes of shares have 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 the Funds are borne pro
rata by the holders of all classes of shares, except that each class bears
distribution expenses unique to that class.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses.
Actual results could differ from those estimates.
A. SECURITY VALUATION:
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 their fair value as determined in good faith
by or under the direction of the Trustees.
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 Trust is
notified. Realized gains and losses are determined on the identified cost basis.
The Trust does not amortize premiums but does amortize discounts.
C. INCOME TAXES:
Each Fund is treated as a separate taxable entity. It is the policy of each
Fund to comply with the requirements of the Internal Revenue Code (the "Code")
applicable to regulated investment companies, and to distribute 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 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 and 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
45
<PAGE>
PHOENIX-ENGEMANN FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 (UNAUDITED) (CONTINUED)
separate that portion of the results of operations arising from changes in the
exchange rates and that portion arising from changes in the market prices of
securities.
F. FORWARD CURRENCY CONTRACTS:
The Global Growth Fund, the Small & Mid-Cap Growth Fund and the Value 25 Fund
may enter into forward currency contracts in conjunction with the planned
purchase or sale of foreign denominated securities in order to hedge the U.S.
dollar cost or proceeds. Forward currency contracts involve, to varying degrees,
elements of market risk in excess of the amount recognized in the Statement of
Assets and Liabilities. Risks arise from the possible movements in foreign
exchange rates or if the counterparty does not perform under the contract.
A forward currency contract involves an obligation to purchase or sell a
specific currency at a future date, which may be any number of days from the
date of the contract agreed upon by the parties, at a price set at the time of
the contract. These contracts are traded directly between currency traders and
their customers. The contract is marked-to-market daily and the change in market
value is recorded by each Fund as an unrealized gain (or loss). When the
contract is closed or offset with the same counterparty, the Fund records a
realized gain (or loss) equal to the change in the value of the contract when it
was opened and the value at the time it was closed or offset.
G. FUTURES CONTRACTS:
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. The Global Growth Fund, the Small &
Mid-Cap Growth Fund and the Value 25 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 Fund is
required to pledge to the broker an amount of cash and/or securities equal to
the "initial margin" requirements of the futures exchange on which the contract
is traded. Pursuant to the contract, the Fund agrees to receive from or pay to
the broker an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as daily variation margin and are
recorded by the Fund as unrealized gains and 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:
The Global Growth Fund and the Small & Mid-Cap Growth Fund may write covered
options or purchase options contracts for purpose of hedging against changes in
the market value of the underlying securities or foreign currencies. To a
limited extent, the Value 25 Fund may buy and sell options on domestic and
foreign securities indices for hedging purposes.
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 from the contracts.
Each 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. 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.
J. LOAN AGREEMENTS:
The Funds may invest in direct debt instruments which are invested in amounts
owed by a corporation, governmental, or other borrower to lenders or lending
syndicates. The Funds' investments in loans may be in the form of participations
in loans or assignments of all or a portion of loans from third parties. A loan
is often administered by a bank or other financial institution (the lender) that
acts as agent for all holders. The agent administers the terms of the loan, as
specified in the loan agreement. When investing in a loan participation, the
Funds have the right to receive payments of principal, interest and any fees to
which it is entitled only from the lender selling the loan agreement and only
upon receipt by the lender of payments from the borrower. The Funds generally
have no right to enforce compliance with the terms of the loan agreement with
the borrower. As a result, the Funds may be subject to the credit risk of both
the borrower and lender that is selling the loan agreement. For loans which the
Funds are a participant, the Funds may not sell their participation in the loan
without the lender's prior consent. When the Funds purchase assignments from
lenders it acquires direct rights against the
46
<PAGE>
PHOENIX-ENGEMANN FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 (UNAUDITED) (CONTINUED)
borrower on the loan. Direct indebtedness of emerging countries involves a risk
that the government entities responsible for the repayment of the debt may be
unable, or unwilling to pay the principal and interest when due.
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
As compensation for its services to the Trust, the Adviser, Roger Engemann &
Associates, Inc. ("REA", or the "Adviser"), a wholly owned subsidiary of
Pasadena Capital Corporation, which in turn is a wholly owned subsidiary of
Phoenix Investment Partners, Ltd. a publicly-traded company 60% owned by Phoenix
Home Life Mutual Insurance Company, is entitled to a fee, based upon the
following annual rates as a percentage of the average daily net assets of each
Fund:
<TABLE>
<CAPTION>
First $50 Next $450 Over $500
Million Million Million
------------ ------------ ------------
<S> <C> <C> <C>
Balanced Return Fund............... 0.80% 0.70% 0.60%
Global Growth Fund................. 1.10% 1.00% 0.90%
Growth Fund........................ 0.90% 0.80% 0.70%
Nifty Fifty Fund................... 0.90% 0.80% 0.70%
Small & Mid-Cap Growth Fund........ 1.00% 0.90% 0.80%
Value 25 Fund...................... 0.90% 0.80% 0.70%
</TABLE>
The Adviser furnishes advice and recommendations with respect to the Funds'
securities portfolios, supervises the Funds' investments, provides Fund
accounting and pricing, and provides the Trust's Board of Trustees with periodic
and special reports on investment securities, economic conditions and other
pertinent subjects. The Manager also performs various administrative and
shareholder services for each Fund under separate administration agreements. All
normal operating expenses of the Funds, except for fees and expenses associated
with investment management services, service fees, distribution fees, Trustees'
fees, audit fees and certain legal fees are paid by the Manager pursuant to the
administration agreements.
Phoenix Equity Planning Corporation ("PEPCO") an indirect majority-owned
subsidiary of PHL, which serves as the national distributor of the Trust's
shares has advised the Trust that it retained net selling commissions of $84,701
for Class A shares and deferred sales charges of $335,586 for Class B shares and
$64,794 for Class C shares for the six months ended June 30, 1999. In addition,
each Fund pays PEPCO a distribution fee at an annual rate of 0.25% for Class A
shares, 1.00% for Class B shares and 1.00% for Class C applied to the average
daily net assets of each Fund. The distributor has advised the Trust that of the
total amount expensed for the six months ended June 30, 1999 $1,402,813 was
retained by the Distributor, $1,496,684 was paid out to unaffiliated
Participants and $24,981 was paid to W.S. Griffith, an indirect subsidiary of
PHL.
As Administrator of the Funds, PEPCO received a fee for bookkeeping,
administration, and pricing services at an annual rate of 0.60% of average daily
net assets up to $50 million, 0.50% of average daily net assets of $50 million
to $500 million, 0.40% of average daily net assets of $500 million through $625
million, and 0.30% of average daily net assets greater than $625 million: a
minimum fee may apply.
PEPCO has voluntarily agreed to waive, when necessary, a portion of its
administration fee so that Other Operating Expenses (operating expenses
excluding management fees and 12b-1 fees) do not exceed the following limits:
<TABLE>
<CAPTION>
1st $50 Next $450 Next $125 Over $625
Million Million Million Million
---------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Balanced Return Fund..... 1.09% 0.60% 0.40% 0.40%
Global Growth Fund....... 0.60% 0.50% 0.40% 0.40%
Growth Fund.............. 0.99% 0.50% 0.30% 0.30%
Nifty Fifty Fund......... 0.99% 0.50% 0.30% 0.30%
Small & Mid-Cap Growth
Fund................... 0.60% 0.50% 0.40% 0.40%
Value 25 Fund............ 0.60% 0.50% 0.40% 0.40%
</TABLE>
PEPCO serves as the Fund's Transfer Agent with State Street Bank and Trust
Company as sub-transfer agent.
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the six months ended June 30, 1999
(excluding U.S. Government and agency securities, short-term securities, futures
contracts and forward currency contracts) aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
-------------- --------------
<S> <C> <C>
Balanced Return Fund....................... $ 34,471,978 $ 20,673,582
Global Growth Fund......................... 3,887,693 7,998,452
Growth Fund................................ 151,691,444 193,942,696
Nifty Fifty Fund........................... 126,507,699 115,156,403
Small & Mid Cap Growth Fund................ 74,891,510 67,451,324
Value 25 Fund.............................. 30,216,782 36,390,782
</TABLE>
Purchases and sales of U.S. Government and agency securities during the six
months ended June 30, 1999, aggregated $11,493,172 and $0 respectively, for the
Balanced Return Fund.
4. 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,
47
<PAGE>
PHOENIX-ENGEMANN FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 (UNAUDITED) (CONTINUED)
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.
5. CAPITAL LOSS CARRYOVERS
The following Funds have capital loss carryovers, expiring in 2006, which may
be used to offset future capital gains.
<TABLE>
<S> <C>
Global Growth Fund............................ $1,742,859
Small & Mid-Cap Growth Fund................... 10,519,829
</TABLE>
6. OTHER
On February 9, 1999, the Board of Trusteees of Phoenix-Engemann Funds
unanimously approved an Agreement and Plan of reorganization relating to the
proposed combination of the Phoenix-Aberdeen Worldwide Opportunities Fund and
the Phoenix-Engemann Global Growth Fund.
Pursuant to the Agreement, the Global Growth Fund will transfer substantially
all of its assets to the Worldwide Opportunities Fund in exchange for shares of
the Worldwide Opportunities Fund and the assumption by the Worldwide
Opportunities Fund of certain identified liabilities of the Global Growth Fund.
Following the exchange, the Global Growth Fund will distribute the shares of the
Worldwide Opportunities Fund to its shareholders pro rata, in liquidation of the
Global Growth Fund.
This report is not authorized for distribution to prospective investors in the
Phoenix-Engemann Funds unless preceded or accompanied by an effective Prospectus
which includes information concerning the sales charge, the Fund's record and
other pertinent information.
48
<PAGE>
PHOENIX-ENGEMANN FUNDS
600 North Rosemead Boulevard
Pasadena, California 91107-2133
TRUSTEES
Roger Engemann
Barry E. McKinley
Robert L. Peterson
Richard C. Taylor
Angela Wong
OFFICERS
Roger Engemann, President
Malcolm Axon, Chief Financial Officer
Tina L. Mitchell, Secretary
John S. Tilson, Vice President
Thomas N. Steenburg, General Counsel and
Vice President
INVESTMENT ADVISERS
Roger Engemann & Associates ("REA")
600 North Rosemead Boulevard
Pasadena, California 91107-2101
PRINCIPAL UNDERWRITER
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
CUSTODIANS
Union Bank of California
475 Sansome Street
San Francisco, California 94111
State Street Bank and Trust Company
(Global Growth Fund)
P.O. Box 351
Boston, Massachusetts 02101
TRANSFER AGENT
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
HOW TO CONTACT US
The Fund Connection 1-800-243-1574
Customer Service 1-800-243-1574 (option 0)
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
World Wide Web address:
WWW.PHOENIXINVESTMENTS.COM
<PAGE>
PHOENIX EQUITY PLANNING CORPORATION
PO Box 2200
Enfield CT 06083-2200
[LOGO]
PHOENIX INVESTMENT PARTNERS
PRSRT STD
U.S. Postage
PAID
Springfield, MA
Permit No 444
PXP 2115A(8/99)
