Phoenix Annual Report
April 30, 1996
Phoenix Income
and Growth Fund
Annual Report
{LOGO] Phoenix
Duff&Phelps
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
PHOENIX INCOME AND GROWTH FUND
MARKET AND PORTFOLIO REVIEW
Phoenix Income and Growth Fund posted solid absolute results during the
fiscal year, aided by the strong rally in the U.S. equity markets. For the
twelve months ended April 30, 1996, Class A shares provided a total return of
19.01% and Class B shares returned 18.14%. These results slightly trailed the
Fund's Balanced benchmark, which returned 19.80% over the same period. All of
these figures assume reinvestment of any distributions but exclude the effect
of sales charges.
Over this reporting cycle, the portfolio's equity exposure to the energy,
health care and financial services sectors contributed positively to
performance. Most recently, our biggest individual gainers included
Perkin-Elmer, El Paso Natural Gas, Noble Affiliates, and Westinghouse. The
Fund's conservatively biased stock selection process held back performance in
this increasingly speculative environment.
Although bond prices have recently plummeted, the Fund's fixed-income
segment performed well over this twelve-month reporting period. Specifically,
the portfolio's exposure to "spread-sector" securities has continued to prove
rewarding. We are particularly pleased with the strong results from our
municipal and corporate high-yield holdings, as well as our limited position
in emerging markets debt.
Looking ahead, with earnings growth slowing and the economy showing some
signs of renewed strength, we will continue to maintain a balance between
cyclical and non-cyclical growth stocks. Investment themes that we believe
offer significant growth potential in this environment include Rising Energy
Demand, 21st Century Medicine and Deregulating Media. As for the Fund's
fixed-income holdings, we will continue to invest in undervalued sectors of
the market and look for further opportunities to diversify and enhance our
returns within this asset class. At the end of this reporting period, the
Fund's asset allocation was 67% equities, 31% fixed-income and 2% cash
reserves.
As always, our strategy remains focused on providing a diversified,
income-oriented portfolio which offers risk-averse investor participation in
the equity and fixed-income markets. Given the recent volatility in the
financial markets, we believe the Fund is well positioned for what may be a
challenging environment ahead.
1
<PAGE>
PHOENIX INCOME AND GROWTH FUND
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[Graph depicting the following plot points]
Phoenix Income and
Growth Fund--Class A S&P 500* Balanced Benchmark*
4/30/86 9525 10000 10000
4/30/87 10817 12624 11689
4/30/88 10994 11798 11746
4/30/89 13382 14476 13617
4/30/90 13994 15986 14970
4/30/91 16037 18805 17373
4/30/92 18648 21431 19497
4/30/93 21405 23411 21464
4/30/94 22129 24663 22233
4/30/95 23447 28972 25043
4/30/96 27904 37744 30002
Average Annual Total Returns
for Periods Ending 4/30/96 From Inception
1 5 10 1/3/92 to
Year Years Years 4/30/96
- -------------------------------------------------------------------------
Class A with 4.75% sales charge 13.39% 10.64% 10.81% --
- -------------------------------------------------------------------------
Class A at net asset value 19.01% 11.71% 11.35% --
- -------------------------------------------------------------------------
Class B with CDSC 13.14% -- -- 9.38%
- -------------------------------------------------------------------------
Class B at net asset value 18.14% -- -- 9.72%
- -------------------------------------------------------------------------
Balanced Benchmark** 19.80% 11.55% 11.61% 10.49%
- -------------------------------------------------------------------------
S&P 500 Stock Index* 30.28% 14.95% 14.20% 14.04%
- -------------------------------------------------------------------------
This chart assumes an initial investment of $10,000 made on April 30, 1986
for Class A shares. The total return for Class A shares reflects the maximum
sales charge of 4.75% on the initial investment and assumes reinvestment of
dividends and capital gains. Class B share performance will be greater or
less than that shown based on differences in inception date, fees and sales
charges. The total return (since inception 1/3/92) for Class B shares reflect
the 5% contingent deferred sales charge (CDSC), which is applicable on all
shares redeemed during the 1st year after purchase and 4% for all shares
redeemed during the 2nd year after purchase (scaled down to 3%-3rd year,
2%-4th and 5th year and 0% thereafter). Returns indicate past performance,
which is not predictive of future performance. Investment return and net
asset value will fluctuate, so that your shares, when redeemed, may be worth
more or less than the original cost.
Foreign investing involves special risks, such as currency fluctuation and
less public disclosure as well as economic and political risks.
*The S&P 500 Stock Index is an unmanaged but commonly used measure of stock
total return performance. The S&P 500's performance does not reflect sales
charges.
**The Balanced Benchmark is calculated based upon the performance of the
following indices: 55% S&P 500/35% Lehman Brothers Aggregate Bond Index/10%
U.S. Treasury Bills and is produced by Frank Russell Company. The index's
performance does not reflect sales charges.
2
<PAGE>
PHOENIX INCOME AND GROWTH FUND
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INVESTMENTS AT APRIL 30, 1996
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
-------- ------- -------------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--8.5%
U.S. Treasury Notes--5.1%
U.S. Treasury Notes 7.375%, '97 AAA $ 5,000 $ 5,100,900
U.S. Treasury Notes 5.25%, '98 AAA 5,000 4,910,350
U.S. Treasury Notes 5%, '99 AAA 19,700 19,109,000
U.S. Treasury Notes 6.375%, '01 AAA 10,000 9,970,100
U.S. Treasury Notes
5.625%, '06(h) AAA 6,700 6,210,063
U.S. Treasury Notes 6%, '26 AAA 100 88,906
----------
45,389,319
----------
Agency Mortgage-Backed Securities--3.4%
GNMA 6.50%, '23-'24 AAA 32,334 30,313,648
----------
TOTAL U.S. GOVERNMENT SECURITIES
(Identified cost $76,959,686) 75,702,967
----------
MUNICIPAL BONDS--2.4%
Alabama--0.1%
Alabama Agriculture/Mechanical
Univ. 5.50%, '20 AAA 800 755,832
----------
California--1.9%
Kern County Pension Oblig.
Taxable 7.26%, '14 AAA 4,350 4,144,071
Long Beach Pension
Oblig. Taxable 6.87%, '06 AAA 3,000 2,903,850
Sacramento County 95-A
Taxable 6.625%, '06 AAA 3,400 3,245,912
San Bernardino County Oblig.
Rev Tax 6.87%, '08 AAA 1,335 1,281,333
San Bernardino County Oblig.
Rev. Tax 6.94%, '09 AAA 3,625 3,479,021
Ventura County Pension
Taxable 6.54%, '05 AAA 2,200 2,100,208
----------
17,154,395
----------
Michigan--0.2%
Michigan Public Power Agency
Sinker 5.25%, '18 AAA 2,060 1,875,939
----------
South Carolina--0.2%
South Carolina Public Service
Series C 5%, '25 AAA 2,000 1,727,680
----------
TOTAL MUNICIPAL BONDS
(Identified cost $22,436,545) 21,513,846
----------
CONVERTIBLE BONDS--12.6%
Airlines--0.3%
Continental Airlines Cv. 144A
6.75%, '06 (b) CCC 2,000 2,202,500
----------
Conglomerates--1.6%
Hanson America, Inc. Cv. 144A
2.39%, '01 (b) A+ 18,200 14,423,500
----------
Electrical Equipment--0.5%
General Signal Corp. Cv.
5.75%, '02 A- 4,000 4,270,000
----------
Entertainment, Leisure & Gaming--2.8%
Comcast Corp. Cv. 1.125%, '07 B+ $ 19,650 $ 9,481,125
Comcast Corp. Cv. SIRENS 3.375%,
'05 (e) B+ 7,500 6,862,500
IMAX Corp. Cv. 144A 5.75%, '03
(b) B- 2,000 1,985,000
Time Warner, Inc. Cv. 0%, '13 BBB- 7,500 3,150,000
Turner Broadcasting Cv. 144A 0%,
'07 (b) BB- 8,000 3,830,000
----------
25,308,625
----------
Food--1.4%
Grand Metropolitan PLC Cv. 144A
6.50%, '00 (b) A+ 10,750 12,201,250
----------
Healthcare--Diversified--0.6%
Roche Holdings, Inc. Cv. 144A 0%,
'10 (b) NR 4,000 1,765,000
Sandoz Capital BVI LTD Cv. 144A
2%, '02 (b) NR 3,500 3,736,250
----------
5,501,250
----------
Healthcare--Drugs--0.3%
Chiron Corp. Cv. 144A
1.90%, '00 (b) BBB+ 2,500 2,375,000
---------
Hospital Management & Services--0.3%
PHP Healthcare Cv. 144A 6.50%,
'02 (b) B- 500 649,375
Tenet Healthcare Cv. 6%, '05 B+ 1,500 1,627,500
----------
2,276,875
----------
Insurance--0.1%
Chubb Corp. Cv. 6%, '98 AA 1,000 1,160,000
----------
Metals & Mining--0.5%
Molten Metal Technology Cv. 144A
5.50%, '06 (b) NR 4,750 4,850,937
----------
Natural Gas--1.3%
Apache Corp. Cv. 144A 6%, '02 (b) BBB- 4,000 4,455,000
Consolidated Natural Gas Co. Cv.
7.25%, '15 A+ 5,300 5,545,125
Cross Timbers Cv. 5.25%, '03 B 1,750 1,721,563
----------
11,721,688
----------
Office & Business Equipment--0.5%
Conner Peripherals
Cv. 6.50%, '02 BB+ 4,000 4,505,000
----------
Oil--0.6%
Pogo Producing Co. Cv. 5.50%, '04 B 3,000 5,100,000
----------
REITS--0.9%
Health Care Property, Inc. Cv.
144A 6%, '00 (b) BBB 1,500 1,462,500
Liberty Property Trust Cv. 8%,
'01 B(d) 6,000 6,270,000
----------
7,732,500
----------
</TABLE>
See Notes to Financial Statements.
3
<PAGE>
PHOENIX INCOME AND GROWTH FUND
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<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
-------- ------- -------------
<S> <C> <C> <C>
Retail--Drug--0.5%
Rite Aid Corp. Cv. 0%, '06 BBB+ $ 8,500 $ 4,483,750
-----------
Telecommunications Equipment--0.4%
BBN Corp. Cv. 6%, '12 B(d) 1,650 1,773,750
United Communications Cv. 144A
2.75%, '06 (b) NR 2,000 2,025,000
-----------
3,798,750
-----------
TOTAL CONVERTIBLE BONDS
(Identified cost $109,780,584) 111,911,625
-----------
NON-CONVERTIBLE BONDS--15.3%
Auto & Truck Parts--0.5%
American Car Line Equipment
8.25%, '08 BBB- 3,994 4,150,884
-----------
Chemical--Specialty--0.3%
Borden Chemical & Plastics 9.50%,
'05 BB+ 3,000 3,022,500
-----------
Entertainment, Leisure & Gaming--1.4%
Turner Broadcasting 8.375%, '13 BB+ 3,000 2,934,180
Viacom International, 8%, '06 BB- 10,000 9,325,000
-----------
12,259,180
-----------
Hospital Management & Services--0.6%
Tenet Healthcare
Corp. 9.625%, '02 B+ 5,000 5,362,500
-----------
Lodging & Restaurants--0.6%
Host Marriott Travel Plaza, Inc.
9.50%, '05 BB- 5,000 4,862,500
-----------
Natural Gas--0.5%
Coastal Corp. 8.125%, '02 BB+ 4,000 4,177,480
-----------
Non-Agency Mortgage Backed--7.7%
Airplanes Pass Through Trust 1D
10.875%, '19 BB 1,400 1,459,500
G.E. Capital Mortgage Serv. 94-9,
M 6.50%, '24 AA 11,739 10,447,667
G.E. Capital Mortgage Serv. 96-8,
M 7.25%, '26 (g) AA 500 472,500
Green Tree Financial Corp. 96-2
M1 7.60%, '27 AA- 3,325 3,242,914
Green Tree Financial Corp. 96-3,
B1 7.70%, '27 BBB+ 2,500 2,474,219
Merrill Lynch Mortgage Inv. 96-C1
B 7.42%, '28 AA 1,910 1,867,920
Prudential Home Mortgage 94-15, M
6.80%, '24 Aa(d) 8,562 7,770,198
Residential Funding Mtg. 96-S1, L
7.10%, '26 AAA 2,800 2,612,750
Residential Funding Mtg. 96-S4,
M1 7.25%, '26 AA 2,996 2,833,048
Resolution Trust Corp. 92-C8, D
8.835%, '23 BBB- 7,752 7,815,396
Resolution Trust Corp. 94-C2, C
8%, '25 A 7,650 7,671,516
Resolution Trust Corp. 94-C1, D
8%, '26 BBB 1,591 1,570,652
Resolution Trust Corp. 95-C2, B
6.80%, '27 Aa(d) $ 6,116 $ 5,854,502
SASC 95-C1 C 7.375%, '24 A 2,500 2,401,562
SASC 95-C4, B 7%, '26 AA 5,198 4,976,803
SASC 96-CFL, C 6.525%, '28 A 1,430 1,361,181
Securitized Asset Sales, Inc.,
93-J 2B 6.8076%, '23 A(d) 4,470 4,106,588
-----------
68,938,916
-----------
Oil--0.3%
Petropower Funding 144A 7.36%,
'14 (b) BBB 2,400 2,244,648
-----------
Paper & Forest Products--0.5%
Buckeye Cellulose 8.50%, '05 BB- 5,000 4,837,500
-----------
Publishing, Broadcasting, Printing & Cable--1.2%
Continental Cablevision 144A
8.30%, '06 (b) BB+ 5,000 5,150,000
News America Holdings 10.125%,
'12 BBB 5,000 5,568,300
-----------
10,718,300
-----------
REITS--0.3%
Meditrust Corp. 7.375%, '00 BBB- 3,000 2,974,440
-----------
Textile & Apparel--1.1%
Westpoint Stevens 8.75%, '01 BB- 5,000 5,000,000
Westpoint Stevens 9.375%, '05 B+ 5,000 4,912,500
-----------
9,912,500
-----------
Tobacco--0.1%
RJR Nabisco, Inc. 8%, '01 BBB- 1,000 972,960
-----------
Truckers & Marine--0.2%
Teekay Shipping
Corp. 8.32%, '08 BB 1,645 1,570,975
-----------
TOTAL NON-CONVERTIBLE BONDS
(Identified cost $138,441,194) 136,005,283
-----------
FOREIGN NON-CONVERTIBLE BONDS--1.2%
Paper & Forest Products--0.3%
Asia Pulp & Paper Co. Yankee
11.75%, '05 (Indonesia) BB 2,500 2,437,500
-----------
Telecommunications Equipment--0.9%
Rogers Cablesystems Ltd. 9.625%,
'02 (Canada) BB+ 8,000 8,080,000
-----------
TOTAL FOREIGN NON-CONVERTIBLE BONDS
(Identified cost $10,532,766) 10,517,500
-----------
FOREIGN GOVERNMENT SECURITIES--3.5%
Argentina--0.8%
Republic of Argentina FRB
6.3125%, '05 (e) BB- 2,228 1,701,253
Republic of Argentina Par L-GP
5.25%, '23 (e) BB- 5,000 2,728,125
Republic of Argentina Discount
L-GL Euro 6.5625%, '23 (e) BB- 4,500 3,113,438
-----------
7,542,816
----------
</TABLE>
See Notes to Financial Statements.
4
<PAGE>
PHOENIX INCOME AND GROWTH FUND
- -------------------------------------------------------------------------
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
-------- ------- -------------
<S> <C> <C> <C>
Brazil--1.0%
Republic of Brazil, interest
capitalization, Series C Euro,
8%, '14 (e) B+ $2,165 $ 1,303,520
Republic of Brazil Par Z-L Euro
5%, '24 (e) B(d) 6,500 3,420,625
Republic of Brazil
Discount Series Z-L Euro 6.50%,
'24 (e) B+ 5,750 3,892,031
-----------
8,616,176
-----------
Colombia--0.2%
Republic of Colombia Euro 9%, '97 NR 1,500 1,519,860
-----------
Mexico--0.8%
United Mexican States Discount A
6.39844%, '19 (e)(f) BB 3,750 3,007,031
United Mexican States Euro D
6.54688%, '19 (e)(f) BB 1,500 1,202,813
United Mexican States Series B
Euro 6.25%, '19 (f) BB 4,250 2,805,000
-----------
7,014,844
-----------
Philippines--0.5%
Central Bank of Philippines NMB
Euro 6.3125%, '05 (e) BB 4,500 4,286,250
-----------
Poland--0.2%
Poland Discount Euro 6.4375%, '24
(e) BBB 750 697,500
Poland Global Reg Par Euro 2.75%,
'24 (e) BBB 500 251,563
Poland PDI B 3.75%, '14 (e) BBB 1,500 1,155,000
-----------
2,104,063
-----------
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified cost $30,361,232) 31,084,009
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS--9.5%
Diversified Financial Services--0.6%
Great Western Financial Corp. Cv.
Pfd. 4.375% 300 17,400
H.F. Ahmanson & Co. Cv. Pfd. 6% 60,000 3,360,000
Morgan Stanley Group
PERCS 40,000 2,135,000
-----------
5,512,400
-----------
Electrical Equipment--0.9%
Westinghouse Electric Corp. Cv. Pfd.
144A $1.30 (b) 480,000 8,100,000
-----------
Entertainment, Leisure & Gaming--0.5%
Cablevision Systems Cv. Pfd. 8.50% 165,000 4,269,375
-----------
Machinery--0.3%
Cooper Industries 6%, "Wyman notes"
(DECS) 150,000 2,587,500
-----------
Medical Products & Supplies--0.5%
U.S. Surgical Corp. $2.20 Series A, '98 125,000 4,578,125
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -------------
<S> <C> <C>
Metals & Mining--1.0%
Bethlehem Steel Cv. Pfd. 144A
$3.50 (b) 35,000 $ 1,526,875
Coeur D'Alene Cv. Pfd. 7%, '00 150,000 3,131,250
Freeport-McMoRan Copper Cv. Pfd. 5%, '02 150,000 4,256,250
-----------
8,914,375
-----------
Natural Gas--0.3%
Enron Capital Corp. Cv. Pfd. 6.25% 100,000 2,562,500
-----------
Oil--2.8%
ARCO 9% "Lyondell" 150,000 4,237,500
Occidental Petroleum Corp. 144A $3.875, Cv.
Pfd. (b) 195,000 12,090,000
Unocal Corp. 144A $3.50 Cv. Pfd. (b) 125,000 6,828,125
Valero Energy Corp. Cv. Pfd. 6.25%, '49 30,500 1,769,000
-----------
24,924,625
-----------
Oil Service & Equipment--0.3%
Noble Drilling Corp. $1.50 Cv. Pfd. 79,000 2,932,875
-----------
Paper & Forest Products--0.6%
International Paper Co. Cv. Pfd. 144A
5.25% (b) 120,000 5,520,000
-----------
REITS--0.1%
Security Capital Industrial Trust 7% Cv.
Pfd. 50,000 1,150,000
-----------
Telecommunications Equipment--0.4%
Global Star Telecom Cv. Pfd. 144A
6.50% (b) 64,000 3,008,000
-----------
Tobacco--0.6%
RJR Nabisco, Inc. 9.25% PERCS 823,500 4,941,000
-----------
Utility--Electric--0.2%
California Energy Capital Trust Cv. Pfd.
144A (b) 35,000 1,890,000
-----------
Utility--Telephone--0.4%
Sprint Corp. Cv. Pfd. DECS 8.25%, '00 84,400 3,576,450
-----------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified cost $77,425,890) 84,467,225
-----------
PREFERRED STOCKS--3.2%
Banks--1.0%
Citicorp 8%, Pfd. 200,000 5,025,000
Fleet Financial Group, Inc. Pfd. 9.30% 150,000 3,918,750
-----------
8,943,750
-----------
Insurance--0.5%
Aon Corp. 8%, Pfd. 166,500 4,224,937
-----------
Natural Gas--0.6%
Enron Capital $2.00 Pfd. Series C 225,000 5,568,750
-----------
Publishing, Broadcasting, Printing & Cable--1.1%
News Corp. Overseas Ltd. Series A 8.625%,
Pfd. 400,000 9,900,000
-----------
TOTAL PREFERRED STOCKS
(Identified cost $29,120,575) 28,637,437
-----------
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
PHOENIX INCOME AND GROWTH FUND
- -------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -------------
<S> <C> <C>
COMMON STOCKS--39.6%
Advertising--1.1%
Interpublic Group Companies, Inc. 100,000 $ 4,675,000
Omnicom Group, Inc. 120,000 5,205,000
-----------
9,880,000
-----------
Aerospace & Defense--0.8%
Lockheed Martin Corp. 50,000 4,031,250
Loral Space and Communications Corp. 200,000 2,875,000
-----------
6,906,250
-----------
Autos & Trucks--0.5%
General Motors Corp. 75,000 4,068,750
-----------
Banks--0.6%
Barnett Banks, Inc. 79,246 5,022,190
-----------
Beverages--1.1%
Anheuser-Busch Companies, Inc. 50,000 3,356,250
PepsiCo, Inc. 75,000 4,762,500
Seagram Ltd. 50,000 1,693,750
-----------
9,812,500
-----------
Building & Materials--0.1%
Centex Corp. 50,000 1,350,000
-----------
Chemical--0.9%
Dow Chemical Co. 60,000 5,332,500
Union Carbide Corp. 60,000 2,730,000
-----------
8,062,500
-----------
Computer Software & Services--1.6%
America Online, Inc. (c) 30,000 1,920,000
Computer Associates International, Inc. 25,000 1,834,375
Informix Corp. (c) 79,000 2,083,625
Microsoft Corp. (c) 30,000 3,401,250
Oracle Systems Corporation (c) 79,500 2,683,125
Tektronix 50,000 1,981,250
-----------
13,903,625
-----------
Conglomerates--0.5%
Litton Industries, Inc. (c) 90,000 4,083,750
-----------
Cosmetics & Soaps--0.7%
Avon Products, Inc. 20,000 1,777,500
Colgate Palmolive Co. 60,000 4,597,500
-----------
6,375,000
-----------
Diversified Financial Services--0.5%
Travelers Group, Inc. 71,000 4,366,500
-----------
Diversified Miscellaneous--1.1%
Hillenbrand Industries, Inc. 125,000 4,750,000
Pioneer Hi Bred International, Inc. 85,000 4,738,750
-----------
9,488,750
-----------
Electronics--4.1%
Perkin Elmer Corp. 670,000 36,766,250
-----------
Entertainment, Leisure & Gaming--0.3%
Cox Communications, Inc. (c) 110,000 2,255,000
Harrah's Entertainment, Inc. (c) 15,600 538,200
-----------
2,793,200
-----------
Healthcare--Diversified--0.6%
Warner-Lambert Co. 46,000 5,140,500
-----------
Healthcare--Drugs--1.0%
Lilly (Eli) & Co. 56,000 $ 3,304,000
Merck & Co., Inc. 50,000 3,025,000
Pharmacia & Upjohn, Inc. 57,000 2,180,250
-----------
8,509,250
-----------
Hospital Management & Services--0.7%
Quorum Health Group, Inc. (c) 250,000 6,343,750
-----------
Insurance--2.2%
Aetna Life & Casualty Co. 55,000 3,918,750
Allstate Corp. 85,000 3,304,375
American International Group, Inc. 30,000 2,741,250
Cigna Corp. 45,000 5,101,875
IPC Holdings, Ltd. (c) 162,000 3,179,250
PartnerRe Ltd. 35,000 988,750
-----------
19,234,250
-----------
Machinery--0.3%
Albany International Corporation 125,000 2,687,500
-----------
Medical Products & Supplies--0.9%
Baxter International, Inc. 115,000 5,088,750
Johnson & Johnson 30,000 2,775,000
-----------
7,863,750
-----------
Natural Gas--8.1%
Anadarko Petroleum Corp. 163,000 9,494,750
Apache Corp. 225,000 6,525,000
Consolidated Natural Gas Co. 379,000 17,718,250
El Paso Natural Gas Co. 124,200 4,595,400
Enron Corp. 250,000 10,062,500
Enron Oil & Gas Co. 225,000 5,962,500
Seagull Energy Corp. (c) 230,000 5,606,250
Sonat, Inc. 279,000 12,171,375
-----------
72,136,025
-----------
Office & Business Equipment--0.7%
International Business Machines Corp. 15,000 1,612,500
Storage Technology Corp. (c) 100,000 3,075,000
Sun Microsystems, Inc. (c) 30,000 1,627,500
-----------
6,315,000
-----------
Oil--3.4%
Louisiana Land & Exploration Co. 200,000 10,825,000
Noble Affiliates, Inc. 252,700 8,876,087
Union Pacific Resources Group 137,900 3,792,250
Unocal Corp. 165,000 5,300,625
Valero Energy Corp. 43,100 1,244,513
-----------
30,038,475
-----------
Oil Service & Equipment--0.6%
Diamond Offshore Drilling (c) 28,000 1,393,000
Tidewater, Inc. 100,000 4,250,000
-----------
5,643,000
-----------
Pollution Control--0.7%
WMX, Inc. 190,000 6,602,500
-----------
Publishing, Broadcasting, Printing & Cable--1.0%
Harcourt General, Inc. 100,000 4,400,000
Tele-Communications TCI Group A (c) 250,000 4,781,250
-----------
9,181,250
-----------
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
PHOENIX INCOME AND GROWTH FUND
- -------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -------------
<S> <C> <C>
REITS--0.5%
Meditrust Corp. 96,296 $ 3,262,027
Patriot American Hospitality 55,000 1,533,125
-----------
4,795,152
-----------
Retail--0.4%
Circuit City Stores, Inc. 120,000 3,810,000
-----------
Telecommunications Equipment--0.2%
Cisco Systems, Inc. (c) 35,000 1,815,625
-----------
Tobacco--0.2%
American Brands, Inc. 50,000 2,081,250
-----------
Truckers & Marine--0.2%
Caliber System, Inc. 50,000 2,006,250
-----------
Utility--Electric--1.0%
CMS Energy Corp. 150,000 4,368,750
Illinova Corp. 85,000 2,167,500
Pinnacle West Capital Corp. 90,000 2,396,250
-----------
8,932,500
-----------
Utility--Telephone--3.0%
AT&T Corp. 130,000 7,962,500
Frontier Corp. 100,000 3,162,500
GTE Corp. 108,000 4,684,500
NYNEX Corp. 113,000 5,551,125
U.S. West Communications Group 100,000 3,275,000
U.S. West Media Group (c) 100,000 1,950,000
-----------
26,585,625
-----------
TOTAL COMMON STOCKS
(Identified cost $296,429,042) 352,600,917
-----------
FOREIGN COMMON STOCKS--2.3%
Autos & Trucks--0.3%
Nissan Motor Co. (Japan) 138,000 1,164,720
Toyota Motor Corp. (Japan) 48,000 1,095,360
-----------
2,260,080
-----------
Beverages--0.1%
Panamerican Beverages, Inc. (Mexico) 20,000 877,500
-----------
Insurance--0.4%
GCR Holdings, Ltd. (Bermuda) 40,000 1,020,000
LaSalle Re Holdings, Ltd. (Bermuda) 40,000 795,000
Mid Ocean Ltd. (Bermuda) 20,000 715,000
Renaissance Holdings, Ltd. (Bermuda) 30,000 817,500
-----------
3,347,500
-----------
Rails--0.5%
Canadian Pacific Ltd. (Canada) 235,000 $ 4,788,125
-----------
Utility--Telephone--1.0%
BCE, Inc. (Canada) 225,000 8,859,375
-----------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $18,534,192) 20,132,580
-----------
TOTAL LONG-TERM INVESTMENTS--98.1%
(Identified cost $810,021,706) 872,573,389
-----------
</TABLE>
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000)
-------- -----
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--2.0%
Commercial Paper--1.5%
Anheuser-Busch Cos., Inc.
5.32%, 5-1-96 A-1+ $1,300 1,300,000
ESC Securitization 5.28%,
5-2-96 A-1+ 5,000 4,999,267
General Electric Capital
Corp. 5.29%, 5-3-96 A-1+ 145 144,957
Greenwich Funding Corp.
5.30%, 5-3-96 A-1+ 250 249,926
HJ Heinz Co. 5.23%, 5-3-96 A-1 3,380 3,379,018
Exxon Imperial U.S., Inc.
5.28%, 5-7-96 A-1+ 1,175 1,173,966
Receivables Capital Corp.
5.32%, 5-28-96 A-1 2,440 2,430,265
-----------
13,677,399
-----------
Federal Agency Securities--0.5%
Federal Farm Credit Bank 5.19%, 5-7-96 4,350 4,346,237
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $18,023,636) 18,023,636
-----------
TOTAL INVESTMENTS--100.1%
(Identified cost $828,045,342) 890,597,025(a)
Cash and receivables, less liabilities--(0.1)% (974,260)
-----------
NET ASSETS--100.0% $889,622,765
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $77,764,621 and gross
depreciation of $15,218,396 for income tax purposes. At April 30, 1996,
the aggregate cost of securities for federal income tax purposes was
$828,050,800.
(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 April 30,
1996, these securities amount to a value of $102,318,960 or 11.5% of net
assets.
(c) Non-income producing.
(d) As rated by Moody's, Fitch or Duff & Phelp's.
(e) Variable or step coupon bond; interest rate shown reflects the rate
currently in effect.
(f) Mexico Value Recovery Euro Rights (12,326,000 shares) incorporated as a
unit.
(g) When issued.
(h) Segregated as collateral for the when issued purchase ($500,000 par).
See Notes to Financial Statements.
7
<PAGE>
PHOENIX INCOME AND GROWTH FUND
- -------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $828,045,342) $890,597,025
Cash 3,419
Receivables
Investment securities sold 1,368,180
Fund shares sold 369,813
Dividends and interest 6,388,169
-----------
Total assets 898,726,606
-----------
Liabilities
Payables
Investment securities purchased 6,347,428
Fund shares repurchased 1,524,965
Investment advisory fee 509,598
Distribution fee 425,334
Transfer agent fee 145,938
Financial agent fee 21,840
Trustees' fee 6,567
Accrued expenses 122,171
-----------
Total liabilities 9,103,841
-----------
Net Assets $889,622,765
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $783,705,128
Undistributed net investment income 2,996,598
Accumulated net realized gain 40,369,356
Net unrealized appreciation 62,551,683
-----------
Net Assets $889,622,765
===========
Class A
Shares of beneficial interest outstanding, $.0001
par value, unlimited authorization
(Net Assets $493,453,949) 48,947,772
Net asset value per share $ 10.08
Offering price per share
$10.08/(1 - 4.75%) $ 10.58
Class B
Shares of beneficial interest outstanding, $.0001
par value, unlimited authorization
(Net Assets $396,168,816) 39,262,569
Net asset value and offering price per share $ 10.09
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 1996
<TABLE>
<S> <C>
Investment Income
Dividends $ 16,660,537
Interest 33,040,163
----------
Total investment income 49,700,700
Expenses
Investment advisory fee 6,253,253
Distribution fee--Class A 1,247,057
Distribution fee--Class B 3,945,039
Financial agent 267,997
Transfer agent 1,429,666
Custodian 82,722
Printing 78,230
Registration 69,198
Professional 52,461
Trustees 26,567
Miscellaneous 13,354
----------
Total expenses 13,465,544
----------
Net investment income 36,235,156
----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 73,897,826
Net realized gain on foreign currency transactions 663,598
Net change in unrealized appreciation
(depreciation)
on investments 41,747,703
----------
Net gain on investments 116,309,127
----------
Net increase in net assets resulting from
operations $152,544,283
==========
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
PHOENIX INCOME AND GROWTH FUND
- -------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Year
Ended Ended
April 30, April 30,
1996 1995
----------- -------------
<S> <C> <C>
From Operations
Net investment income $ 36,235,156 $ 42,940,111
Net realized gain (loss) 74,561,424 (15,384,412)
Net change in unrealized appreciation (depreciation) 41,747,703 20,259,660
--------- -----------
Increase in net assets resulting from operations 152,544,283 47,815,359
--------- -----------
From Distributions to Shareholders
Net investment income--Class A (21,775,957) (25,024,482)
Net investment income--Class B (13,920,528) (16,394,441)
Net realized gains--Class A (1,790,547) (18,457,864)
Net realized gains--Class B (1,413,822) (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 (38,900,854) (90,045,025)
--------- -----------
From Share Transactions
Class A
Proceeds from sales of shares (4,186,098 and 8,604,772 shares,
respectively) 40,001,714 77,928,546
Net asset value of shares issued from reinvestment of distributions
(1,892,290 and 4,857,806 shares, respectively) 18,094,132 41,693,221
Cost of shares repurchased (12,338,773 and 14,515,244 shares,
respectively) (118,161,444) (130,803,842)
--------- -----------
Total (60,065,598) (11,182,075)
--------- -----------
Class B
Proceeds from sales of shares (3,371,066 and 8,760,924 shares,
respectively) 32,278,099 79,839,220
Net asset value of shares issued from reinvestment of distributions
(1,165,398 and 3,254,429 shares, respectively) 11,169,191 27,882,891
Cost of shares repurchased (8,800,122 and 9,116,661 shares, respectively) (84,143,012) (81,271,548)
--------- -----------
Total (40,695,722) 26,450,563
--------- -----------
Increase (decrease) in net assets from share transactions (100,761,320) 15,268,488
--------- -----------
Net increase (decrease) in net assets 12,882,109 (26,961,178)
Net Assets
Beginning of period 876,740,656 903,701,834
--------- -----------
End of period (including undistributed net investment income of $2,996,598
and $1,821,996, respectively) $ 889,622,765 $ 876,740,656
========= ===========
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
PHOENIX INCOME AND GROWTH FUND
- -------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------
Year Ended April 30,
1996 1995 1994 1993 1992
------- ------- ------- ------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.88 $ 9.33 $ 9.92 $ 9.13 $ 8.48
Income from investment operations:
Net investment income 0.44 0.46 0.45 0.43(1) 0.45
Net realized and unrealized gain (loss) 1.22 0.03 (0.08) 0.88 0.88
----- ----- ----- ----- -------
Total from investment operations 1.66 0.49 0.37 1.31 1.33
----- ----- ----- ----- -------
Less distributions:
Dividends from net investment income (0.42) (0.45) (0.44) (0.44) (0.44)
Distributions from net realized gains (0.04) (0.33) (0.52) (0.08) (0.24)
Distributions in excess of accumulated net realized gains -- (0.16) -- -- --
----- ----- ----- ----- -------
Total distributions (0.46) (0.94) (0.96) (0.52) (0.68)
----- ----- ----- ----- -------
Change in net asset value 1.20 (0.45) (0.59) 0.79 0.65
----- ----- ----- ----- -------
Net asset value, end of period $ 10.08 $ 8.88 $ 9.33 $ 9.92 $ 9.13
===== ===== ===== ===== =======
Total return (2) 19.01% 5.95% 3.38% 14.78% 16.28%
Ratios/supplemental data:
Net assets, end of period (thousands) $493,454 $490,225 $524,855 $514,803 $357,366
Ratio to average net assets of:
Expenses 1.18% 1.16% 1.23% 1.33% 1.38%
Net investment income 4.39% 5.07% 4.57% 4.60% 4.99%
Portfolio turnover 107% 90% 88% 44% 32%
</TABLE>
<TABLE>
<CAPTION>
Class B
-----------------------------------------------------
Year Ended April 30,
From
Inception
1/3/92 to
1996 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 0.36 0.39 0.38 0.25(1) 0.08
Net realized and unrealized gain (loss) 1.23 0.04 (0.08) 1.00 0.15
----- ----- ----- ----- -------
Total from investment operations 1.59 0.43 0.30 1.25 0.23
----- ----- ----- ----- -------
Less distributions:
Dividends from net investment income (0.34) (0.38) (0.38) (0.38) (0.08)
Distributions from net realized gains (0.04) (0.33) (0.52) (0.08) --
Distributions in excess of accumulated net realized gains -- (0.16) -- -- --
----- ----- ----- ----- -------
Total distributions (0.38) (0.87) (0.90) (0.46) (0.08)
----- ----- ----- ----- -------
Change in net asset value 1.21 (0.44) (0.60) 0.79 0.15
----- ----- ----- ----- -------
Net asset value, end of period $ 10.09 $ 8.88 $ 9.32 $ 9.92 $ 9.13
===== ===== ===== ===== =======
Total return (2) 18.14% 5.23% 2.62% 14.09% 2.69(4)
Ratios/supplemental data:
Net assets, end of period (thousands) $396,169 $386,515 $378,847 $217,432 $21,983
Ratio to average net assets of:
Expenses 1.93% 1.91% 1.91% 2.03% 2.08(3)
Net investment income 3.64% 4.32% 3.98% 3.73% 4.07(3)
Portfolio turnover 107% 90% 88% 44% 32%
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charge is not reflected in total return calculation.
(3) Annualized
(4) Not annualized
See Notes to Financial Statements.
10
<PAGE>
PHOENIX INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1996
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's
primary investment objective is to invest in a diversified group of
securities that are selected for current yield consistent with preservation
of capital. 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. 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 traded on an exchange or quoted on the over-the-counter
market 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 market transactions in comparable securities,
quotations from dealers, and various relationships between securities in
determining value. Short-term investments having a remaining maturity of less
than 61 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 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
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 majority-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
11
<PAGE>
PHOENIX INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1996 (Continued)
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 majority-owned subsidiary of PHL, has advised the Fund
that it retained net selling commissions of $71,801 for Class A shares and
deferred sales charges of $1,838,501 for Class B shares for the year ended
April 30, 1996. In addition, the 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
year ended April 30, 1996, $3,246,040 was earned by the Distributor and
$1,946,056 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
year ended April 30, 1996, transfer agent fees were $1,429,666 of which PEPCO
retained $519,144 which is net of fees paid to State Street.
At April 30, 1996, PHL and affiliates held 106 Class A shares and 15 Class
B shares of the Fund with a combined value of $1,216.
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities, excluding short-term securities, for the
year ended April 30, 1996, aggregated $907,905,059 and $994,112,297,
including $125,496,652 and $281,602,159 of U.S. Government securities,
respectively.
4. CAPITAL LOSS CARRYOVERS
Under current tax law, capital losses realized after October 31, 1995 may be
deferred and treated as occurring on the first day of the following fiscal
year. For the year ended April 30, 1996, the Fund did not defer any losses;
however, the Fund was able to utilize losses deferred in the prior year
against current year capital gains in the amount of $30,561,080.
5. RECLASSIFICATION OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, the Fund has recorded several
reclassifications in the capital accounts. These reclassifications have no
impact on the net asset value of the Fund and are designed generally to
present undistributed income and realized gains on a tax basis which is
considered to be more informative to the shareholder. As of April 30, 1996,
the Fund increased capital paid in on shares of beneficial interest by
$10,166, increased undistributed net investment income by $635,931 and
decreased accumulated net realized gains by $646,097.
TAX INFORMATION NOTICE (Unaudited)
For federal income tax purposes, 24.2% of the ordinary income dividends paid
by the Fund qualify for the dividends received deduction of corporate
shareholders.
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.
12
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
PRICE WATERHOUSE LLP [LOGO]
To the Trustees and Shareholders of
Phoenix Income and Growth Fund
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments (except for bond ratings), and the
related statements of operations and of changes in net assets and the
financial highlights present fairly, in all material respects, the financial
position of Phoenix Income and Growth Fund (the "Fund") at April 30, 1996,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended and the financial
highlights for each of the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at April 30, 1996 by
correspondence with the custodian and brokers, and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.
/s/ Price Waterhouse LLP
Boston, Massachusetts
June 14, 1996
13
<PAGE>
PHOENIX INCOME AND GROWTH FUND
101 Munson Street
Greenfield, Massachusetts 01301
Trustees
C. Duane Blinn
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Francis E. Jeffries
Leroy Keith, Jr.
Philip R. McLoughlin
Everett L. Morris
James M. Oates
Calvin J. Pedersen
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
William J. Newman, Senior Vice President
Michael K. Arends, 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
Independent Accountants
Price Waterhouse LLP
160 Federal Street
Boston, Massachusetts 02110
14
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[POSTAGE PERMIT]
Phoenix Income and Growth Fund
P.O. Box 2200
Enfield, CT 06083-2200
[PHOENIX DUFF & PHELPS LOGO]
PDP 743 (6/96) [DALBAR LOGO]
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 001
<NAME> PHOENIX INCOME & GROWTH FUND CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1996
<PERIOD-START> MAY-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 828045
<INVESTMENTS-AT-VALUE> 890597
<RECEIVABLES> 8127
<ASSETS-OTHER> 3
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 898727
<PAYABLE-FOR-SECURITIES> 6347
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2757
<TOTAL-LIABILITIES> 9104
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 783705
<SHARES-COMMON-STOCK> 48948
<SHARES-COMMON-PRIOR> 55208
<ACCUMULATED-NII-CURRENT> 2997
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 40369
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 62552
<NET-ASSETS> 889623
<DIVIDEND-INCOME> 16661
<INTEREST-INCOME> 33040
<OTHER-INCOME> 0
<EXPENSES-NET> (13466)
<NET-INVESTMENT-INCOME> 36235
<REALIZED-GAINS-CURRENT> 74561
<APPREC-INCREASE-CURRENT> 41748
<NET-CHANGE-FROM-OPS> 152544
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 21776
<DISTRIBUTIONS-OF-GAINS> 1790
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4186
<NUMBER-OF-SHARES-REDEEMED> 12339
<SHARES-REINVESTED> 1892
<NET-CHANGE-IN-ASSETS> 3229
<ACCUMULATED-NII-PRIOR> 1822
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (30342)
<GROSS-ADVISORY-FEES> 6253
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 13466
<AVERAGE-NET-ASSETS> 893318
<PER-SHARE-NAV-BEGIN> 8.88
<PER-SHARE-NII> 0.44
<PER-SHARE-GAIN-APPREC> 1.22
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