PHOENIX INCOME AND GROWTH FUND
MARKET AND PORTFOLIO REVIEW
Phoenix Income and Growth Fund produced solid absolute gains over this
six-month reporting period, although trailing the market somewhat. For the
six months ended October 31, 1995, Class A shares produced a total return of
8.59% and Class B shares returned 8.21%. For the same period the Balanced
benchmark returned 11.05%. All of these figures assume reinvestment of any
distributions but exclude the effect of sales charges.
During the last six months, we have maintained a moderately aggressive
equity posture. Some of the Fund's holdings in the financial services sector,
particularly exposure to some of the large multi-line insurance companies,
have greatly benefited the performance of the portfolio. Limited exposure to
the technology sector, which led the market advance for much of the year, was
a drag on the Fund's performance.
The Fund continues to provide highly diversified exposure to the equity
and fixed-income markets, with an emphasis on current yield. We believe this
is an excellent strategy for the investor who wants to participate in equity
market advances, but wants to maintain a relatively low risk profile.
Looking forward, we are focusing on a number of investment themes that we
expect will provide attractive opportunities for the Fund. These themes
include Deregulating Financial Services, Deregulating Media, and 21st Century
Medicine, which are represented by holdings in the financial services, media
and biotechnology industries. Also, our Rising Energy Demand theme remains a
major thrust. We have recently increased holdings in the U.S. natural gas
industry since we believe these companies will benefit from the ongoing
strong demand for a clean energy alternative, as well as from improving
industry fundamentals.
INVESTMENTS AT OCTOBER 31, 1995
(Unaudited)
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
----------- -------- ------------
U.S. GOVERNMENT SECURITIES--18.0%
U.S. Treasury Bonds--1.8%
U.S. Treasury Bonds 6.875%, '25 AAA $15,000 $ 16,099,500
------------
U.S. Treasury Notes--11.4%
U.S. Treasury Notes 7.50%, '96 AAA 42,000 42,889,140
U.S. Treasury Notes 7.375%, '97 AAA 17,000 17,556,580
U.S. Treasury Notes 5.25%, '98 AAA 20,000 19,777,000
U.S. Treasury Notes 5.875%, '99 AAA 19,500 19,579,365
------------
99,802,085
------------
Agency Mortgage-Backed Securities--4.8%
GNMA 6.50%, '05 AAA 10,000 9,718,750
GNMA 6.50%, '23-'24 AAA 23,217 22,571,002
GNMA 9%, '23-'25 AAA 9,630 10,121,544
------------
42,411,296
------------
TOTAL U.S. GOVERNMENT SECURITIES
(Identified cost $156,561,163) 158,312,881
------------
MUNICIPAL BONDS--1.8%
Alabama--0.1%
Alabama Agriculture/Mechanical
Univ. 5.50%, '20 AAA 800 777,808
------------
California--0.9%
California State G.O. 5.125%, '17 AAA $ 2,000 $ 1,833,440
Long Beach Pension Obligation
6.87%, '06 AAA 3,000 3,001,080
Sacramento County 95-A 6.625%, '06 AAA 3,400 3,366,544
------------
8,201,064
------------
Illinois--0.4%
Chicago O'Hare Int'l Airport
Series C 5%, '18 AAA 4,000 3,593,720
------------
South Carolina--0.4%
South Carolina Public Service Rev.
Series C 5%, '18 AAA 1,650 1,491,946
South Carolina Public Service
Series C 5%, '25 AAA 2,000 1,770,980
------------
3,262,926
------------
TOTAL MUNICIPAL BONDS
(Identified cost $15,834,587) 15,835,518
------------
CONVERTIBLE BONDS--12.7%
Conglomerates--1.7%
Hanson America, Inc. Cv. 144A
2.39%, '01 (b) AA 18,200 14,787,500
------------
1
<PAGE>
Phoenix Income and Growth Fund
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
----------- -------- ------------
Computer Software & Services--0.3%
Softkey Sdcv 144A 5.50%, '00 (b) NR $ 3,000 $ 2,535,000
--------
Electrical Equipment--0.5%
General Signal Corp. Cv. 5.75%,
'02 A 4,000 4,145,000
--------
Entertainment, Leisure & Gaming--4.2%
Comcast Corp. Cv. 1.125%, '07 BB- 14,650 7,361,625
Comcast Corp. Cv. SIRENS (3.375%,
9/97) 5.50%, '05 BB- 4,500 4,275,000
Time Warner, Inc. Cv. 8.75%, '15 BBB- 20,989 21,750,214
Turner Broadcasting Cv. 144A 0%,
'07 (b) (c) BBB- 8,000 3,570,000
--------
36,956,839
-----------
Food--1.4%
Grand Metropolitan PLC Cv. 144A
6.50%, '00 (b) AA 10,750 12,201,250
--------
Health Care--Drugs--0.7%
Chiron Corp. Cv. 144A 1.90%, '00
(b) A- 2,500 2,284,375
Genzyme Corp. Cv. 6.75%. '01 BB- 3,000 3,562,500
--------
5,846,875
--------
Insurance--0.1%
Chubb Corp. Cv. 6%, '98 AAA 1,000 1,097,500
--------
Natural Gas--0.9%
Apache Corp. Cv 144A 6%,
'02 (b) BBB 2,500 2,743,750
Consolidated Natural Gas Co. Cv.
7.25%, '15 AA 5,300 5,485,500
--------
8,229,250
-----------
Office & Business Equipment--0.3%
EMC Corp. Cv. 4.25%, '01 BB- 3,000 3,000,000
--------
Oil--0.8%
Pennzoil Co. Cv. 6.50%, '03 BBB+ 6,000 6,900,000
--------
REITS--0.9%
Health Care Property, Inc. Cv.
144A 6%, '00 (b) BBB+ 1,500 1,473,750
Liberty Property Trust Cv.
8%, '01 NR 6,000 6,180,000
--------
7,653,750
-----------
Retail--Drug--0.5%
Rite Aid Corp. Cv. 0%, '06 (c) A- 8,500 4,218,125
--------
Telecommunications Equipment--0.4%
General Instrument Corp. Cv. 5%,
'00 BBB 3,750 3,768,750
--------
TOTAL CONVERTIBLE BONDS
(Identified cost $111,884,377) 111,339,839
-----------
NON-CONVERTIBLE BONDS--16.9%
Airlines--2.7%
AMR Corp. 9.50%, '01 BBB- $ 9,000 $ 9,920,610
United Airlines, 91-A1,
9.20%, '08 BBB- 8,534 9,089,103
United Airlines, 93-A3
8.39%, '11 BBB- 5,000 5,100,000
--------
24,109,713
-----------
Auto & Truck Parts--0.5%
American Car Line Equipment 8.25%,
'08 BBB 4,329 4,441,680
--------
Banks--0.4%
Citicorp 9%, '99 A+ 3,000 3,247,500
--------
Chemical--Specialty--0.4%
Borden Chemical & Plastics 9.50%,
'05 BBB- 3,000 3,090,000
--------
Computer Software & Services--0.6%
CSC Enterprises
144A 6.80%, '99 (b) AA 5,000 5,070,000
--------
Entertainment, Leisure & Gaming--3.6%
Rogers Cablesystems Ltd. 9.625%,
'02 BBB- 8,000 8,200,000
Royal Caribbean Cruises
8.25%, '05 BBB 5,000 5,352,000
Turner Broadcasting
7.40%, '04 BBB- 5,000 4,974,250
Turner Broadcasting
8.375%, '13 BBB- 3,000 3,080,520
Viacom International 8%, '06 BB+ 10,000 9,925,000
--------
31,531,770
-----------
Hospital Management & Services--1.4%
Columbia Healthcare Corp. 6.50%,
'99 A- 7,000 7,032,760
Tenet Healthcare Corp. 9.625%, '02 BB- 5,000 5,400,000
--------
12,432,760
-----------
Industrial--0.4%
Laidlaw, Inc. 7.875%, '05 A- 3,000 3,190,770
--------
Lodging & Restaurants--1.1%
Host Marriott Travel Plaza
144A 9.50%, '05 (b) BB+ 5,000 4,900,000
Marriott International
7.125%, '07 A 5,000 5,051,950
--------
9,951,950
-----------
Natural Gas--0.5%
Coastal Corp. 8.125%, '02 BBB- 4,000 4,254,920
--------
Non-Agency Mortgage Backed--3.0%
G.E. Capital Mortgage Serv. 94-9,
M 6.50%, '24 AAA 11,807 10,881,099
Prudential Home Mortgage 94-15, M
6.80%, '24 Aa((d)) 8,611 8,078,401
See Notes to Financial Statements.
2
<PAGE>
Phoenix Income and Growth Fund
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
----------- -------- ------------
Non-Agency Mortgage Backed (continued)
Resolution Trust Corp.
94-C2, C 8%, '25 A+ $7,650 $ 7,867,547
------------
26,827,047
------------
Publishing, Broadcasting, Printing & Cable--1.3%
News America Holdings
9.125%, '99 BBB+ 5,000 5,420,150
News America Holdings
10.125%, '12 BBB+ 5,000 5,735,000
------------
11,155,150
------------
REITS--0.3%
Meditrust Corp. 7.375%, '00 BBB 3,000 3,035,250
------------
Textile & Apparel--0.6%
Westpoint Stevens 8.75%, '01 BB+ 5,000 5,075,000
------------
Tobacco--0.1%
RJR Nabisco, Inc. 8%, '01 BBB 1,000 1,012,780
------------
TOTAL NON-CONVERTIBLE BONDS
(Identified cost $144,266,973) 148,426,290
------------
SHARES
-------
CONVERTIBLE PREFERRED STOCKS--6.5%
Bank--0.5%
Barnett Banks, Inc. $4.50 Cv. Pfd. 42,000 4,410,000
-----------
Diversified Financial Services--0.4%
Great Western Financial Corp.
$4.375 Cv. Pfd. 300 17,513
H. F. Ahmanson & Co. Cv. Pfd. 60,000 3,435,000
-----------
3,452,513
-----------
Electrical Equipment--0.8%
Westinghouse Electric Corp. Cv. Pfd.
144A $1.30 (b) 500,000 7,000,000
-----------
Metals & Mining--0.7%
Freeport-McMoRan Copper Cv. Pfd.
(5%, '96) 7%, '02 275,000 6,565,625
-----------
Oil--2.5%
ARCO 9% "Lyondell" 200,000 4,475,000
Occidental Petroleum Corp.
144A 3.875%, Cv. Pfd. (b) 195,000 10,846,875
Unocal Corp. 144A $3.50 Cv. Pfd. (b) 125,000 6,531,250
-----------
21,853,125
-----------
Paper & Forest Products--0.6%
International Paper Co. 144A Cv. Pfd
5.25% (b) 120,000 5,280,000
-----------
Tobacco--0.6%
RJR Nabisco, Inc.
9.25% PERCS 825,000 5,156,250
-----------
Utility--Telephone--0.4%
Sprint Corp. Cv. Pfd. DECS 8.25%,
'00 84,400 3,080,600
-----------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified cost $56,274,174) 56,798,113
-----------
SHARES VALUE
------- -----------
PREFERRED STOCKS--3.2%
Banks--1.0%
Citicorp 8%, Pfd. 200,000 $ 5,050,000
Shawmut National Corp. 9.30%, Pfd. 150,000 3,975,000
----------
9,025,000
----------
Insurance--0.5%
Aon Corp. 8%, Pfd. 166,500 4,266,562
----------
Natural Gas--0.6%
Enron Capital $2.00 Pfd. 225,000 5,625,000
----------
Publishing, Broadcasting, Printing & Cable--1.1%
News Corp. Overseas LTD. Series A
8.625%, Pfd. 400,000 10,100,000
----------
TOTAL PREFERRED STOCKS
(Identified cost $29,120,575) 29,016,562
----------
COMMON STOCKS--31.8%
Advertising--0.9%
Interpublic Group Companies, Inc. 100,000 3,875,000
Omnicom Group, Inc. 70,000 4,471,250
----------
8,346,250
----------
Aerospace & Defense--0.7%
Loral Corp. 200,000 5,925,000
----------
Beverages--0.6%
Seagram Company Ltd. 150,000 5,400,000
----------
Chemical--Specialty--0.5%
Air Products & Chemicals, Inc. 80,000 4,130,000
----------
Diversified Financial Services--2.8%
American Express Co. 175,000 7,109,375
Morgan Stanley Group, Inc. 40,000 3,480,000
Travelers Group, Inc. (c) 270,000 13,635,000
----------
24,224,375
----------
Electronics--2.2%
Perkin Elmer Corp. 550,000 19,318,750
----------
Health Care--Diversified--0.9%
Warner-Lambert Co. (c) 92,000 7,831,500
----------
Insurance--3.9%
Aetna Life & Casualty Co. 250,000 17,593,750
Allstate Corp. 125,000 4,593,750
American International Group, Inc. 30,000 2,531,250
Cigna Corp. 100,000 9,912,500
----------
34,631,250
----------
Miscellaneous--0.5%
Hillenbrand Industries, Inc. 125,000 3,968,750
----------
Natural Gas--4.3%
Consolidated Natural Gas Co. 240,000 9,120,000
El Paso Natural Gas Co. 330,000 8,910,000
Enron Corp. 250,000 8,593,750
Equitable Resources, Inc. 309,200 9,044,100
Seagull Energy Corp. (c) 150,000 2,568,750
----------
38,236,600
----------
See Notes to Financial Statements.
3
<PAGE>
Phoenix Income and Growth Fund
SHARES VALUE
------- ------------
Oil--4.8%
Amoco Corp. 32,857 $ 2,098,741
Atlantic Richfield Co. 150,000 16,012,500
Diamond Offshore Drilling (c) 28,000 696,500
Mobil Corp. 50,000 5,037,500
Noble Affiliates, Inc. 145,000 3,588,750
Sun Company, Inc. 150,000 4,293,750
Tosco Corp. 75,000 2,587,500
Union Pacific Resources Group 37,900 862,225
Unocal Corp. 165,000 4,331,250
Valero Energy Corp. 100,000 2,362,500
-----------
41,871,216
-----------
Pollution Control--1.2%
Browning-Ferris Industries, Inc. 128,000 3,728,000
WMX Technologies, Inc. 250,000 7,031,250
-----------
10,759,250
-----------
REITS--0.5%
Meditrust Corp. 96,296 3,249,990
Patriot American Hospitality (c) 55,000 1,340,625
-----------
4,590,615
-----------
Tobacco--1.8%
American Brands, Inc. 209,000 8,960,875
Philip Morris Companies, Inc. 85,000 7,182,500
-----------
16,143,375
-----------
Utility--Electric--1.2%
CMS Energy Corp. 200,000 5,525,000
Illinova Corp. 85,000 2,411,875
Pinnacle West Capital Corp. 90,000 2,475,000
-----------
10,411,875
-----------
Utility--Telephone--5.0%
AT&T Corp. 160,000 10,240,000
BCE, Inc. 125,000 4,203,125
Frontier Corp. (c) 100,000 2,700,000
GTE Corp. 250,000 10,312,500
NYNEX Corp. 250,000 11,750,000
U.S. West Communications, Inc. (c) 100,000 4,762,500
-----------
43,968,125
-----------
TOTAL COMMON STOCKS
(Identified cost $247,972,398) 279,756,931
-----------
FOREIGN COMMON STOCKS--2.2%
Autos & Trucks--0.3%
Kyocera (Japan) 12,000 983,520
Nissan Motor (Japan) 138,000 931,293
Toyota Motor (Japan) 48,000 891,840
-----------
2,806,653
-----------
Bank--0.2%
Mitsubishi Trust & Banking (Japan) 121,000 $ 1,692,790
-----------
Healthcare--Drugs--0.6%
Pharmacia Aktiebolag-SP ADR
(Sweden) 150,000 5,250,000
-----------
Oil--1.1%
Royal Dutch Petroleum Co. ADR
(Netherlands) 75,000 9,215,625
-----------
Textile & Apparel--0.0%
Gucci Group NV (Italy) (c) 13,000 390,000
-----------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $17,621,036) 19,355,068
-----------
TOTAL LONG-TERM INVESTMENTS--93.1%
(Identified cost $779,535,283) 818,841,202
-----------
STANDARD PAR
& POOR'S VALUE
RATING (000)
-------- ------ -------------
SHORT-TERM OBLIGATIONS--8.0%
Commercial Paper--8.0%
Emerson Electric Co.
5.70%, 11-1-95 A-1+ $ 4,015 4,015,000
Anheuser-Busch Cos., Inc.
5.82%, 11-1-95 A-1+ 20,000 20,000,000
Minnesota Mining &
Manufacturing 5.70%,
11-1-95 A-1+ 4,210 4,210,000
Mobil Corp. 5.85%, 11-1-95 A-1+ 9,110 9,110,000
Anheuser-Busch Cos., Inc.
5.65%, 11-3-95 A-1+ 4,525 4,523,579
First Deposit Funding
Trust 5.74%, 11-6-95 A-1+ 2,275 2,273,186
Philip Morris Cos.
5.72%, 11-6-95 A-1+ 855 854,321
Southwestern Bell
Telephone 5.73%, 11-7-95 A-1+ 4,195 4,190,994
Exxon Imperial U.S., Inc.
5.72%, 11-8-95 A-1+ 10,000 9,988,878
Southwestern Bell
Telephone 5.70%, 11-14-95 A-1+ 11,000 10,977,358
------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $70,143,316) 70,143,316
------------
TOTAL INVESTMENTS--101.1%
(Identified cost $849,678,599) 888,984,518(a)
Cash & receivables, less liabilities--(1.1%) (9,336,249)
------------
NET ASSETS--100.0% $879,648,269
============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $51,989,386 and gross
depreciation of $12,683,467 for income tax purposes. At October 31, 1995,
the aggregate cost of securities for federal income tax purposes was
$849,678,599.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31,
1995, these securities amount to a value of $79,223,750 or 9.01% of net
assets.
(c) Non-income producing
(d) As rated by Moody's, Fitch or Duff & Phelp's
ADR--American Depository Receipt
See Notes to Financial Statements.
4
<PAGE>
Phoenix Income and Growth Fund
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1995
(Unaudited)
Assets
Investment securities at value
(Identified cost $849,678,599) $888,984,518
Receivables
Investment securities sold 12,709,328
Fund shares sold 497,615
Dividends and interest 8,217,594
------------
Total assets 910,409,055
------------
Liabilities
Payables
Custodian 322,111
Investment securities purchased 28,079,102
Fund shares repurchased 1,163,481
Investment advisory fee 526,210
Distribution fee 435,839
Financial agent fee 22,552
Trustees' fee 6,472
Transfer agent fee 129,679
Accrued expenses 75,340
------------
Total liabilities 30,760,786
------------
Net Assets $879,648,269
============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $834,823,285
Undistributed net investment income 1,710,960
Accumulated net realized gains 3,808,105
Net unrealized appreciation 39,305,919
------------
Net Assets $879,648,269
============
Class A
Shares of beneficial interest outstanding, $.0001
par value, unlimited authorization
(Net Assets $492,413,627) 52,296,114
Net asset value per share $9.42
Offering price per share
$9.42/(1 - 4.75%) $9.89
Class B
Shares of beneficial interest outstanding, $.0001
par value, unlimited authorization (Net Assets
$387,234,642) 41,090,990
Net asset value and offering price per share $9.42
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1995
(Unaudited)
Investment Income
Dividends $ 8,861,301
Interest 16,977,981
----------
Total investment income 25,839,282
Expenses
Investment advisory fee 3,142,058
Distribution fee--Class A 628,786
Distribution fee--Class B 1,973,511
Financial agent fee 134,660
Transfer agent 742,629
Registration 48,881
Printing 39,142
Custodian 32,710
Professional 28,339
Trustees 14,853
Miscellaneous 13,383
----------
Total expenses 6,798,952
----------
Net investment income 19,040,330
----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gains on securities 33,484,091
Net realized gains on foreign currency
transactions 665,616
Net unrealized appreciation on investments 18,501,939
----------
Net gain on investments 52,651,646
----------
Net increase in net assets resulting from
operations $71,691,976
==========
See Notes to Financial Statements.
5
<PAGE>
Phoenix Income and Growth Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year
October 31, 1995 Ended
(Unaudited) April 30, 1995
---------------- -----------------
<S> <C> <C>
From Operations
Net investment income $ 19,040,330 $ 42,940,111
Net realized gain (loss) 34,149,707 (15,384,412)
Net unrealized appreciation 18,501,939 20,259,660
-------------- ---------------
Increase in net assets resulting from operations 71,691,976 47,815,359
-------------- ---------------
From Distributions to Shareholders
Net investment income--Class A (11,743,158) (25,024,482)
Net investment income--Class B (7,408,208) (16,394,441)
Net realized gains--Class A -- (18,457,864)
Net realized gains--Class B -- (14,684,720)
Distribution in excess of accumulated net realized gains--Class A -- (8,670,770)
Distribution in excess of accumulated net realized gains--Class B -- (6,812,748)
-------------- ---------------
Decrease in net assets from distributions to shareholders (19,151,366) (90,045,025)
-------------- ---------------
From Share Transactions
Class A
Proceeds from sales of shares (2,328,001 and 8,604,772 shares,
respectively) 21,658,963 77,928,546
Net asset value of shares issued from reinvestment of distributions
(956,403 and 4,857,806 shares, respectively) 8,958,925 41,693,221
Cost of shares repurchased (6,196,447 and 14,515,244 shares,
respectively) (57,671,508) (130,803,842)
-------------- ---------------
Total (27,053,620) (11,182,075)
-------------- ---------------
Class B
Proceeds from sales of shares (1,752,395 and 8,760,924 shares,
respectively) 16,310,751 79,839,220
Net asset value of shares issued from reinvestment of distributions
(569,516 and 3,254,429 shares, respectively) 5,342,942 27,882,891
Cost of shares repurchased (4,757,148 and 9,116,661 shares,
respectively) (44,233,070) (81,271,548)
-------------- ---------------
Total (22,579,377) 26,450,563
-------------- ---------------
(Decrease) increase in net assets from share transactions (49,632,997) 15,268,488
-------------- ---------------
Net increase (decrease) in net assets 2,907,613 (26,961,178)
Net Assets
Beginning of period 876,740,656 903,701,834
-------------- ---------------
End of period (including undistributed net investment income of
$1,710,960 and $1,821,996, respectively) $879,648,269 $ 876,740,656
============== ===============
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
Phoenix Income and Growth Fund
FINANCIAL HIGHLIGHTS
(Selected data for share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
---------------------------------------------------------------------
Six Months
Ended
October 31,
1995 Year Ended April 30,
(Unaudited) 1995 1994 1993 1992 1991
------------- -------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 8.88 $ 9.33 $ 9.92 $ 9.13 $ 8.48 $ 7.89
Income from investment operations:
Net investment income 0.22 0.46 0.45 0.43((1)) 0.45 0.45
Net realized and unrealized gain
(loss) 0.54 0.03 (0.08) 0.88 0.88 0.65
------------ ------- ------- ------- ------- --------
Total from investment operations 0.76 0.49 0.37 1.31 1.33 1.10
------------ ------- ------- ------- ------- --------
Less distributions:
Dividends from net investment
income (0.22) (0.45) (0.44) (0.44) (0.44) (0.44)
Distributions from net realized
gains -- (0.33) (0.52) (0.08) (0.24) (0.07)
Distributions in excess of
accumulated net realized gains -- (0.16) -- -- -- --
------------ ------- ------- ------- ------- --------
Total Distributions (0.22) (0.94) (0.96) (0.52) (0.68) (0.51)
------------ ------- ------- ------- ------- --------
Change in net asset value 0.54 (0.45) (0.59) 0.79 0.65 0.59
------------ ------- ------- ------- ------- --------
Net asset value, end of period $9.42 $8.88 $9.33 $9.92 $9.13 $8.48
============ ======= ======= ======= ======= ========
Total return((2)) 8.59%((4)) 5.95% 3.38% 14.78% 16.28% 14.60%
Ratios/supplemental data:
Net assets, end of period
(thousands) $492,414 $490,225 $524,855 $514,803 $357,366 $254,013
Ratio to average net assets of:
Expenses 1.20%((3)) 1.16% 1.23% 1.33% 1.38% 1.43%
Net investment income 4.60%((3)) 5.07% 4.57% 4.60% 4.99% 5.52%
Portfolio turnover 82%((3)) 90% 88% 44% 32% 38%
</TABLE>
<TABLE>
<CAPTION>
Class B
----------------------------------------------------------
Six Months
Ended From
October 31, Inception
1995 Year Ended April 30, 1/3/92 to
(Unaudited) 1995 1994 1993 4/30/92
------------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $8.88 $9.32 $9.92 $9.13 $8.98
Income from investment operations:
Net investment income 0.18 0.39 0.38 0.25((1)) 0.08
Net realized and unrealized gain (loss) 0.54 0.04 (0.08) 1.00 0.15
------------ ------- ------- ------- --------
Total from investment operations 0.72 0.43 0.30 1.25 0.23
------------ ------- ------- ------- --------
Less distributions:
Dividends from net investment income (0.18) (0.38) (0.38) (0.38) (0.08)
Distributions from net realized gains -- (0.33) (0.52) (0.08) --
Distributions in excess of accumulated net
realized gains -- (0.16) -- -- --
------------ ------- ------- ------- --------
Total Distributions (0.18) (0.87) (0.90) (0.46) (0.08)
------------ ------- ------- ------- --------
Change in net asset value 0.54 (0.44) (0.60) 0.79 0.15
------------ ------- ------- ------- --------
Net asset value, end of period $9.42 $8.88 $9.32 $9.92 $9.13
============ ======= ======= ======= ========
Total return((2)) 8.21%((4)) 5.23% 2.62% 14.09% 2.69%((4))
Ratios/supplemental data:
Net assets, end of period (thousands) $387,235 $386,515 $378,847 $217,432 $21,983
Ratio to average net assets of:
Expenses 1.95%((3)) 1.91% 1.91% 2.03% 2.08%((3))
Net investment income 3.84%((3)) 4.32% 3.98% 3.73% 4.07%((3))
Portfolio turnover 82%((3)) 90% 88% 44% 32%
</TABLE>
((1))Because of the significant increase in outstanding Fund shares during
fiscal 1993, the per share amount for net investment income was computed
using a monthly average number of shares outstanding during the year.
((2))Maximum sales charge is not reflected in total return calculation.
((3))Annualized
((4))Not annualized
See Notes to Financial Statements.
7
<PAGE>
PHOENIX INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1995 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix Income and Growth Fund (the "Fund") 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. The Fund offers both Class A and Class B shares. Class A shares are
sold with a front-end sales charge of up to 4.75%. Class B shares are sold
with a contingent deferred sales charge which declines from 5% to zero
depending on the period of time the shares are held. Both classes of shares
have identical voting, dividend, liquidation and other rights 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 Fund are borne pro rata by the holders of
both classes of shares, except that each class bears distribution expenses
unique to that class.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
A. Security valuation:
Securities listed or traded on a national securities exchange are valued
at the last sale price, or if there had been no sale of the security on that
day, at the mean between the last bid and asked prices. Securities traded in
the over-the-counter market are valued at the mean between the last bid and
asked prices; and if no active market exists, at the bid price. Short-term
investments having a remaining maturity of less than sixty days 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. Dividend income is
recorded on the ex-dividend date or, in the case of certain foreign
securities, as soon as the Fund is notified. Interest income is recorded on
the accrual basis. Discounts are amortized to income using the effective
interest method. Realized gains and losses are determined on the identified
cost basis.
C. Income taxes:
It is the policy of the Fund to comply with the requirements of the
Internal Revenue Code (the "Code") applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. In addition, the Fund intends to distribute an amount
sufficient to avoid imposition of any excise tax under Section 4982 of the
Code. Therefore, no provision for federal income taxes or excise taxes has
been made.
D. Distributions to shareholders:
Distributions to shareholders are recorded 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, and
losses deferred due to wash sales and excise tax regulations. Permanent book
and tax basis differences relating to shareholder distributions will result
in reclassifications to paid in capital.
E. Foreign currency translation:
Foreign securities, other assets and liabilities are valued using the
foreign currency exchange rate effective at the end of the reporting period.
Cost of investments is translated at the currency exchange rate effective at
the date of settlement. 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 Fund does not separate that portion of the results of
operations arising from changes in exchange rates and that portion arising
from changes in the market prices of securities.
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
As compensation for its services to the Fund, the Investment Adviser,
National Securities and Research Corporation, an indirect wholly-owned
subsidiary of Phoenix Home Life Mutual Insurance Company ("PHL"), is entitled
to a fee at an annual rate of 0.70% of the average daily net assets of the
Fund for the first $1.0 billion and 0.65% for the second $1.0 billion.
As Distributor of the Fund's shares, Phoenix Equity Planning Corp.
("PEPCO"), an indirect wholly-owned subsidiary of PHL, has advised the Fund
that it received selling commissions of $46,218 for Class A shares and
deferred sales charges of $970,467 for Class B shares for the six months
ended October 31, 1995. In addition, the
8
<PAGE>
PHOENIX INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1995 (Unaudited) (Continued)
Fund pays PEPCO a distribution fee at an annual rate of 0.25% for Class A
shares and 1.00% for Class B shares of the average daily net assets of the
Fund. The Distribution Plan for Class A shares provides for fees to be paid
up to a maximum on an annual basis of 0.30%; the Distributor has voluntarily
agreed to limit the fee to 0.25%. The Distributor has advised the Fund that
of the total amount expensed for the six months ended October 31, 1995,
$1,663,564 was earned by the Distributor and $938,733 was earned by
unaffiliated participants.
As Financial Agent of the Fund, PEPCO receives a fee at an annual rate of
0.03% of the average daily net assets of the Fund for bookkeeping,
administration and pricing services. PEPCO serves as the Fund's Transfer
Agent with State Street Bank and Trust Company as sub-transfer agent. For the
six months ended October 31, 1995, transfer agent fees were $742,629 of which
PEPCO retained $262,570 which is net of fees paid to State Street.
At October 31, 1995, PHL and affiliates held 103 Class A shares and 15
Class B shares of the Fund with a combined value of $1,110.
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities, excluding short-term securities, for
the six months ended October 31, 1995, aggregated $347,671,072 and
$415,875,637, including $71,972,109 and $125,145,477 of U.S. Government
securities, respectively.
4. CAPITAL LOSS CARRYOVERS
Under current tax law, capital losses realized after October 31, 1994 may
be deferred and treated as occurring on the first day of the following fiscal
year. For the year ended April 30, 1995, the Fund elected to defer
$30,422,043 in losses occurring between November 1, 1994 and April 30, 1995.
This report is authorized for use by other than shareholders only when
accompanied or preceded by the delivery of a current prospectus showing the
sales charge and other material information.
9
<PAGE>
PHOENIX INCOME AND GROWTH FUND
101 Munson Street
Greenfield, Massachusetts 01301
Trustees
C. Duane Blinn
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Leroy Keith, Jr.
Philip R. McLoughlin
James M. Oates
Philip R. Reynolds
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
Officers
Philip R. McLoughlin, President
Martin J. Gavin, Executive Vice President
Michael E. Haylon, Executive Vice President
James M. Dolan, Vice President
John M. Hamlin, Vice President
William R. Moyer, Vice President
Leonard J. Saltiel, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Investment Adviser
National Securities & Research Corporation
56 Prospect Street
Hartford, Connecticut 06115-0480
Principal Underwriter
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
Transfer Agent
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, Massachusetts 02101
Legal Counsel
Dechert, Price & Rhoads
1500 K Street, N.W.
Washington, D.C. 20005-1208
10
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
Phoenix Funds
Phoenix Income
and Growth Fund
Semiannual Report
October 31, 1995
[photo of old dollar bills]
[Phoenix Duff & Phelps logo]
Phoenix Income and Growth Fund
P.O. Box 2200
Enfield, CT 06083-2200
[Phoenix Duff & Phelps logo]
PDP 661 (12/95)
Bulk Rate Mail
U.S. Postage
PAID
Springfield, MA
Permit No. 444
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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