[COVER PAGE]
October 31, 1997
PHOENIX
FUNDS
SEMIANNUAL REPORT
o PHOENIX INCOME AND
GROWTH FUND
[LOGO] PHOENIX
DUFF & PHELPS
<PAGE>
Chairman's Message
Dear Fellow Shareholder,
We're pleased to provide this report for Phoenix Income and Growth Fund
for the six months ended October 31, 1997. This has been a remarkable time for
the financial markets, particularly in terms of market volatility.
During market extremes, your most important asset may be your financial
adviser. Managing your investments in changing markets can be challenging, and
your financial adviser knows some time-tested strategies that can help.
Rebalancing your portfolio is one strategy to reduce risk. As the stock
market has moved higher, your equity investments may have increased in value so
that now they represent a higher percentage of your total portfolio than you
originally intended. Your financial adviser may recommend a shift in asset
allocation to bring your portfolio back in line with your investment goals and
risk tolerance.
Diversifying your portfolio can smooth the effects of volatility.
Spreading your investments across a broad mix of securities, such as stocks and
bonds, reduces risk. You can also diversify by investment style. For example,
you may choose to balance an investment in growth stocks with a fund that
focuses on value-oriented stocks.
Dollar-cost averaging takes advantage of market fluctuations. In a
systematic savings plan, you'll buy fewer shares when prices are high and more
when prices fall. Periodic investments don't ensure a profit, however, and you
should consider your ability to continually make purchases.
On behalf of Phoenix Funds, I want to thank you for investing with us and
assure you that we will continue to work hard to help you meet your investment
needs.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
President and Chairman
Phoenix Funds
<PAGE>
PHOENIX INCOME AND GROWTH FUND
INVESTOR PROFILE
Phoenix Income and Growth Fund is designed for risk-averse investors
seeking current yield and conservation of capital as well as the potential for
long-term capital appreciation.
INVESTMENT ADVISER'S REPORT
For the six months ended October 31, 1997, Phoenix Income and Growth Fund
Class A and B shares posted double-digit returns of 11.29% and 10.96%,
respectively, in line with the 11.26% return of its benchmark, a composite
index consisting of 55% Standard & Poor's 500 Index, 35% Lehman Brothers
Aggregate Bond Index and 10% 90-day T-bills. All performance figures assume
reinvestment of dividends and exclude the effect of sales charges.
Several factors contributed to the Fund's strong performance during this
latest reporting cycle, especially our focus on energy technology issues, such
as Nabors Industries, Diamond Offshore Drilling and Noble Drilling. Other
positive contributors included an overweighted position in the strongly
performing cable industry as well as some individual holdings, such as Rite Aid
and Home Depot. Lastly, with interest rates trending lower since mid-April, our
decision to increase the duration of the fixed-income portion of the Fund
proved beneficial.
OUTLOOK
Although market valuation levels have risen, the economy continues to grow
at a moderate pace, inflation remains benign and the outlook for overall
corporate earnings is still good. Stock selection remains focused on large- and
mid-capitalization firms that possess above-average earnings growth potential,
superior management and positive industry fundamentals. We are currently
emphasizing the energy and health-care sectors, which we believe will continue
to provide good long-term growth opportunities. As always, we remain committed
to the Fund's overall objective of providing low-risk equity exposure.
The fixed-income segment of the Fund is well- diversified in a number of
traditional and non-traditional sectors, and our long-term outlook for the
market remains positive. The average credit quality is "AA," and duration is
approximately 7.15 years, slightly longer than our benchmark, the Lehman
Brothers Aggregate Bond Index. As of October 31, 1997, the asset allocation was
60% equities, 30% fixed-income and 10% cash equivalents.
1
<PAGE>
Phoenix Income and Growth Fund
- --------------------------------------------------------------------------------
INVESTMENTS AT OCTOBER 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- --------- -------------
<S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES--11.6%
U.S. Treasury Bonds--7.0%
U.S. Treasury Bonds 7.25%,
8/15/04 ........................ AAA $20,300 $21,868,987
U.S. Treasury Strip, I.O., 0%,
5/15/17 ........................ AAA 10,000 2,965,900
U.S. Treasury Strip, I.O., 0%,
2/15/18 ........................ AAA 15,000 4,237,650
U.S. Treasury Strip, I.O., 0%,
8/15/21 ........................ AAA 46,000 10,424,520
U.S. Treasury Bonds 6.25%,
8/15/23 (e) ..................... AAA 13,500 13,524,435
U.S. Treasury Bonds 6.625%,
2/15/27 ........................ AAA 5,000 5,300,000
-----------
58,321,492
-----------
U.S. Treasury Notes--1.2%
U.S. Treasury Notes 6.25%,
8/31/02 ........................ AAA 2,500 2,546,025
U.S. Treasury Notes 6.625%,
5/15/07 ........................ AAA 4,500 4,739,062
U.S. Treasury Notes 6.125%,
8/15/07 ........................ AAA 2,500 2,554,688
-----------
9,839,775
-----------
Agency Mortgage-Backed Securities--3.4%
GNMA 6.50%, '23-'24 ............... AAA 28,613 28,445,728
-----------
TOTAL U.S. GOVERNMENT AND AGENCY
SECURITIES
(Identified cost $92,762,593)........................... 96,606,995
-----------
NON-CONVERTIBLE BONDS--15.3%
Asset-Backed Securities--1.6%
AESOP Funding II LLC 144A
97-1, A2 6.40%, 10/20/03 (b) ... AAA 5,000 5,035,938
Associates Manufactured Housing
97-2, A6 7.075%, 3/15/28 ......... AAA 1,500 1,507,500
Fleetwood Credit Corp. 96-B, A
6.90%, 3/15/12 .................. AAA 2,081 2,108,343
Green Tree Financial Corp. 96-2,
M1 7.60%, 4/15/27 ............... AA- 3,325 3,492,289
Green Tree Financial Corp. 96-4,
A6 7.40%, 6/15/27 ............... AAA 1,515 1,565,184
-----------
13,709,254
-----------
Communications Equipment--1.0%
Rogers Cablesystems Ltd. 9.625%,
8/1/02 ........................... BB+ 8,000 8,520,000
-----------
Health Care (Hospital Management)--0.7%
Tenet Healthcare Corp. Sr. Note
9.625%, 9/1/02 .................. BB 5,000 5,487,500
-----------
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- --------- -------------
<S> <C> <C> <C>
Leisure Time (Products)--1.6%
Turner Broadcasting 8.375%,
7/1/13 ........................... BBB- $ 3,000 $ 3,288,630
Viacom International Subordinate
Debenture 8%, 7/7/06 ............ BB- 10,000 9,800,000
-----------
13,088,630
-----------
Lodging & Restaurants--0.6%
Host Marriott Travel Plaza, Inc.
9.50%, 5/15/05 .................. BB- 5,000 5,275,000
-----------
Non-Agency Mortgage-Backed Securities--7.7%
DLJ Mortgage Acceptance Corp.
97-CF2, B2 144A 7.14%,
11/15/08 (b) ..................... BBB- 5,000 5,009,375
DLJ Mortgage Acceptance Corp.
96-CF1, AIB 144A 7.58%,
3/31/28 (b) ..................... AAA 1,400 1,492,313
First Union Lehman Bros. 97-C1,
B 7.43%, 4/18/29 ............... Aa(d) 2,500 2,623,047
G.E. Capital Mortgage Services,
Inc. 94-9, M 6.50%, 2/25/24 ...... AA 11,497 11,044,484
G.E. Capital Mortgage Services,
Inc. 96-8, M 7.25%, 5/25/26 ...... AA 493 499,877
Lehman Large Loan 97-LL1, B
6.95%, 3/12/07 .................. AA 4,340 4,428,834
Nationslink Funding Corp. 96-1, B
7.69%, 12/20/05 .................. AA 1,500 1,586,016
Prudential Home Mortgage
Securities 94-15, M 6.80%,
5/25/24 ........................ Aa(d) 8,410 8,320,393
Prudential Home Mortgage
Securities 96-A, B1 7.958%,
5/28/26 ........................ NR 2,525 2,376,656
Residential Asset Securitization
Trust 96-A8, A1 8%, 12/25/26 .... AAA 2,914 2,972,477
Residential Funding Mortgage
Securities I 96-S1, A11 7.10%,
1/25/26 ........................ AAA 2,800 2,838,500
Residential Funding Mortgage
Securities I 96-S4, M1 7.25%,
2/25/26 ........................ AA 3,939 3,961,939
Resolution Trust Corp. 92-C8, D
8.835%, 12/25/23 ............... BBB- 7,040 7,140,849
Securitized Asset Sales, Inc. 93-J,
2B 6.808%, 11/28/23 ............ A(d) 4,429 4,329,275
Structured Asset Securities Corp.
95-C4, B 7%, 6/25/26 ............ AA 5,198 5,267,550
-----------
63,891,585
-----------
</TABLE>
See Notes to Financial Statements.
2
<PAGE>
Phoenix Income and Growth Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- --------- --------------
<S> <C> <C> <C>
Paper & Forest Products--0.6%
Buckeye Cellulose Corp. 8.50%,
12/15/05 ........................ BB- $ 5,000 $ 5,137,500
------------
Publishing, Broadcasting, Printing & Cable--0.3%
Cablevision Systems Corp.
9.875%, 5/15/06 .................. BB- 2,500 2,662,500
------------
REITS--0.4%
Meditrust Corp. Notes 7.375%,
7/15/00 ........................ BBB- 3,000 3,057,660
------------
Textiles (Apparel)--0.6%
Westpoint Stevens 8.75%,
12/15/01 ........................ BB- 5,000 5,200,000
------------
Truckers--0.2%
Teekay Shipping Corp. 8.32%,
2/1/08 ........................... BB 1,645 1,694,350
------------
TOTAL NON-CONVERTIBLE BONDS
(Identified cost $123,753,060) ........................ 127,723,979
------------
FOREIGN NON-CONVERTIBLE BONDS--0.3%
Chile--0.3%
Compania Sud Amer Vapore
7.375%, 12/8/03 .................. BBB 580 573,475
Petropower I Funding Trust 144A
7.36%, 2/15/14 (b) ............... BBB 2,400 2,372,352
------------
TOTAL FOREIGN NON-CONVERTIBLE BONDS
(Identified cost $2,968,390) ........................... 2,945,827
------------
MUNICIPAL BONDS--2.8%
California--2.8%
Kern County Pension Obligation
Taxable 7.26%, 8/15/14 ......... AAA 4,350 4,518,127
Long Beach Pension Obligation
Taxable 6.87%, 9/1/06 ............ AAA 3,000 3,072,120
Orange County Pension Series A
Taxable 7.62%, 9/1/08 ............ AAA 4,520 4,865,916
Sacramento County Pension 95-A
Taxable 6.625%, 8/15/06 ......... AAA 3,400 3,426,214
San Bernardino County Pension
Obligation Revenue 6.87%,
8/1/08 ........................... AAA 1,335 1,369,643
San Bernardino County Pension
Obligation Revenue 6.94%,
8/1/09 ........................... AAA 3,625 3,731,430
Ventura County Pension
Obligation Taxable 6.54%,
11/1/05 ........................ AAA 2,200 2,213,486
------------
TOTAL MUNICIPAL BONDS
(Identified cost $22,406,132)........................... 23,196,936
------------
CONVERTIBLE BONDS--10.3%
Communications Equipment--0.1%
BBN Corp. Cv. 6%, 4/1/12 ............ B(d) 1,000 965,000
------------
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- --------- --------------
<S> <C> <C> <C>
Health Care (Hospital Management)--0.6%
Tenet Healthcare Cv. 6%, 12/1/05 ... B+ $ 5,000 $ 4,875,000
------------
Lodging--Hotels--0.1%
Capstar Hotel Cv. 4.75%,
10/15/04 ........................ B(d) 1,000 1,018,750
------------
Metals Mining--0.2%
Stillwater Mining Co. Cv. 7%,
5/1/03 ........................... NR 1,500 1,477,500
------------
Office Equipment & Supplies--0.1%
Comverse Technology Cv. 144A
5.75%, 10/1/06 (b) ............... NR 1,250 1,285,938
------------
Oil & Gas (Drilling & Equipment)--2.7%
Key Energy Group Cv. 144A 5%,
9/15/04 (b) ..................... NR 8,750 8,914,062
Loews Corp. Cv. 3.125%,
9/15/07 ........................ A+ 7,775 8,853,781
Nabors Industries, Inc. Cv. 5%,
5/15/06 ........................ BBB- 2,000 4,655,000
------------
22,422,843
------------
Oil & Gas (Exploration & Production)--1.3%
Apache Corp. Cv. 144A 6%,
1/15/02 (b) ..................... BBB 7,750 10,656,250
------------
Publishing (Newspapers)--0.4%
Times Mirror Co. Cv. 144A 0%,
4/15/17 (b) ..................... A 7,500 3,018,750
------------
REITS--0.2%
Health Care Property, Inc. Cv.
144A 6%, 11/8/00 (b) ............ BBB 1,500 1,500,000
------------
Retail (Drug Stores)--3.0%
Rite Aid Corp. Cv. 144A 5.25%,
9/15/02 (b) ..................... BBB 23,500 25,203,750
------------
Retail (General Merchandise)--0.7%
Home Depot, Inc. Cv. 3.25%,
10/1/01 ........................ A+ 2,000 2,575,000
Pep Boys Cv. 0%, 9/20/11 ............ BBB 6,000 3,217,500
------------
5,792,500
------------
Services (Advertising/Marketing)--0.4%
Interpublic Group Cv. 144A
1.80%, 9/16/04 (b) ............... NR 3,700 3,010,875
------------
Telecommunications (Cellular/Wireless)--0.1%
Itron, Inc. Cv. 144A 6.75%,
3/31/04 (b) ..................... NR 1,000 1,110,000
------------
Waste Management--0.4%
WMX Technologies, Inc.
Subordinate Notes Cv. 2%,
1/24/05 ........................ BBB+ 4,350 3,588,750
------------
TOTAL CONVERTIBLE BONDS
(Identified cost $80,303,959) ............................ 85,925,906
------------
</TABLE>
See Notes to Financial Statements.
3
<PAGE>
Phoenix Income and Growth Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- -------- ------------
<S> <C> <C> <C>
FOREIGN CONVERTIBLE BONDS--2.3%
Germany--0.1%
Volkswagen Cv. 144A 3%, 1/24/02
(b) ........................ A+ $1,000 $ 1,172,500
-----------
Switzerland--0.9%
Roche Holdings, Inc. Cv. 144A
0%, 5/6/12 (b) ............ NR 5,500 2,392,500
Sandoz Capital BVI Ltd. Cv. 144A
2%, 10/6/02 (b) ............ Aaa(d) 3,500 5,127,500
-----------
7,520,000
-----------
United Kingdom--1.3%
Grand Metropolitan PLC Cv. 144A
6.50%, 1/31/00 (b) ......... A+ 8,250 10,725,000
-----------
TOTAL FOREIGN CONVERTIBLE BONDS
(Identified cost $15,169,617)..................... 19,417,500
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
--------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS--9.7%
Broadcasting (Television, Radio & Cable)--1.3%
Cablevision Systems Corp. Series I Cv. Pfd.
8.50% ....................................... 117,700 3,678,125
Merrill Lynch & Co. Series Cox (STRYPES)
Cv. Pfd. 6% ................................. 141,100 3,827,338
TCI Pacific Communications Cv. Pfd. 5% ......... 25,000 3,484,375
---------
10,989,838
-----------
Computers (Software & Services)--0.5%
Microsoft Corp. Series A Cv. Pfd. $2.196 ......... 50,500 4,456,625
-----------
Electric Companies--0.2%
AES Trust I Series A (TECONS) Cv. Pfd.
5.375% ....................................... 30,000 1,920,000
-----------
Electronics (Semiconductors)--0.2%
Morgan Stanley Group, Inc. Series AMD
(PERQS) Cv. Pfd. 10% ........................ 51,800 1,554,000
-----------
Lodging--Hotels--0.5%
Host Marriott Financial Trust (QUIPS) Cv.
Pfd. 144A 6.75% (b) ........................... 60,000 3,855,000
-----------
Machinery (Diversified)--0.6%
Cooper Industries, Inc. (DECS) Cv. Pfd. 6% ...... 258,800 5,402,450
-----------
Metals Mining--0.8%
Coeur d'Alene Cv. Pfd. 7% ........................ 210,000 3,294,375
Titanium Metals Cv. Pfd. 144A 6.625% (b) ......... 30,000 1,560,000
USX Corp. Cv. Pfd. 6.75% ........................ 75,000 1,687,500
-----------
6,541,875
-----------
Natural Gas--0.5%
MCN Energy Group, Inc. (PRIDES) Cv. Pfd.
8.75% ....................................... 148,100 4,489,281
-----------
Oil (Domestic Integrated)--3.1%
Occidental Petroleum Corp. Series 1993 Cv.
Pfd. 144A $3.875 (b)........................... 415,000 25,781,875
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C>
Oil & Gas (Drilling & Equipment)--0.2%
EVI, Inc. Cv. Pfd. 144A 5% (b) ............... 26,500 $ 1,334,938
-----------
REITS--0.2%
Rouse Co. Series B Cv. Pfd. $3.00 ............ 39,000 1,833,000
-----------
Savings & Loan Companies--0.6%
Ahmanson (H. F.) & Co. Series D Cv. Pfd. 6% ... 40,000 4,840,000
-----------
Telephone--1.0%
Morgan Stanley Group, Inc. Series TBR
(PERQS) Cv. Pfd. 6% ........................ 40,000 2,800,000
US West, Inc. Series D Cv. Pfd. 4.50% ......... 90,000 5,163,750
-----------
7,963,750
-----------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified cost $71,760,840) ........................ 80,962,632
-----------
FOREIGN CONVERTIBLE PREFERRED STOCKS--0.3%
Banks (Major Regional)--0.3%
WBK STRYPES Trust (STRYPES) Cv. Pfd.
10% (Australia) ........................... 80.000 2,480,000
-----------
TOTAL FOREIGN CONVERTIBLE
PREFERRED STOCKS
(Identified cost $2,508,000) ........................ 2,480,000
-----------
PREFERRED STOCKS--3.0%
Insurance (Multi-Line)--0.5%
Aon Corp. Pfd. 8% ........................... 166,500 4,235,344
-----------
Natural Gas--0.7%
Enron Capital (MIPS) Pfd. 8% .................. 225,000 5,625,000
-----------
Publishing--1.2%
News Corp. Overseas Ltd. Series A Pfd.
8.625% .................................... 400,000 9,975,000
-----------
REITS--0.6%
Home Ownership Funding 2, Step-down Pfd.
144A 13.338% (b) ........................... 5,000 4,956,725
-----------
TOTAL PREFERRED STOCKS
(Identified cost $25,213,458) ........................ 24,792,069
-----------
COMMON STOCKS--30.2%
Air Freight--0.5%
Federal Express Corp. (c) ..................... 64,700 4,318,725
-----------
Banks (Major Regional)--0.5%
NationsBank Corp. ........................... 66,900 4,005,638
-----------
Banks (Money Center)--1.0%
BankAmerica Corp. ........................... 38,900 2,781,350
Chase Manhattan Corp. ........................ 23,800 2,745,925
Citicorp .................................... 20,700 2,588,794
-----------
8,116,069
-----------
Communications Equipment--0.3%
Lucent Technologies, Inc. ..................... 31,000 2,555,563
-----------
Computers (Hardware)--0.5%
International Business Machines Corp. ......... 45,100 4,422,619
-----------
Computers (Peripherals)--0.4%
EMC Corp. (c) ................................. 53,300 2,984,800
-----------
</TABLE>
See Notes to Financial Statements.
4
<PAGE>
Phoenix Income and Growth Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C>
Consumer (Jewelry, Novelties & Gifts)--0.3%
Jostens, Inc. ................................. 98,000 $ 2,284,625
------------
Electric Companies--0.7%
CMS Energy Corp. .............................. 150,000 5,475,000
------------
Electronics (Instrumentation)--2.7%
Perkin Elmer Corp. ........................... 364,800 22,800,000
------------
Health Care (Diversified)--1.0%
McKesson Corp. .............................. 40,000 4,292,500
Warner-Lambert Co. ........................... 29,200 4,181,075
------------
8,473,575
------------
Health Care (Drugs--Major Pharmaceuticals)--2.9%
Lilly (Eli) & Co. ........................... 132,600 8,867,625
Merck & Co., Inc. ........................... 50,000 4,462,500
Pfizer, Inc. ................................. 148,100 10,478,075
------------
23,808,200
------------
Health Care (Medical Products & Supplies)--1.0%
Baxter International, Inc. .................. 106,600 4,930,250
U.S. Surgical Corp. ........................... 119,125 3,208,930
------------
8,139,180
------------
Household Products (Non-Durables)--0.5%
Colgate-Palmolive Co. ........................ 60,100 3,891,475
------------
Insurance (Multi-Line)--1.0%
Hartford Financial Services Group, Inc. ...... 55,300 4,479,300
Travelers Group, Inc. ........................ 59,200 4,144,000
------------
8,623,300
------------
Insurance (Property--Casualty)--1.2%
Allstate Corp. .............................. 39,200 3,251,150
Chubb Corp. ................................. 103,956 6,887,085
------------
10,138,235
------------
Machinery (Diversified)--0.5%
Deere & Co. ................................. 77,600 4,083,700
------------
Metals Mining--1.1%
Stillwater Mining Co. (c) ..................... 447,700 9,289,775
------------
Natural Gas--4.0%
Columbia Gas System, Inc. ..................... 102,800 7,427,300
Eastern Enterprises ........................... 50,000 1,959,375
El Paso Natural Gas Co. ..................... 223,700 13,408,019
KN Energy, Inc. .............................. 51,800 2,253,300
New Jersey Resources Corp. .................. 58,300 1,887,462
Pioneer Natural Resources Co. ............... 115,672 4,634,115
Washington Gas Light Co. ..................... 79,700 2,047,294
------------
33,616,865
------------
Oil (Domestic Integrated)--0.5%
Forcenergy, Inc. (c) ........................ 61,500 2,006,438
Noble Affiliates, Inc. ........................ 50,000 2,053,125
------------
4,059,563
------------
Oil & Gas (Drilling & Equipment)--2.7%
BJ Services Co. (c) ........................... 49,900 4,229,025
Baker Hughes, Inc. ........................... 132,600 6,091,312
Diamond Offshore Drilling, Inc. ............... 53,500 3,330,375
SHARES VALUE
--------- -------------
<S> <C> <C>
Oil & Gas (Drilling & Equipment)--continued
Noble Drilling Corp. (c) ..................... 122,523 $ 4,357,224
Rowan Companies, Inc. (c) ..................... 105,000 4,081,875
------------
22,089,811
------------
Oil & Gas (Exploration & Production)--2.4%
Anadarko Petroleum Corp. ..................... 35,000 2,563,750
Burlington Resources, Inc. .................. 84,300 4,125,431
Equitable Resources, Inc. ..................... 168,400 5,357,225
Newfield Exploration Co. (c) .................. 102,700 2,785,737
United Meridian Corp. (c) ..................... 150,700 5,114,381
------------
19,946,524
------------
REITS--1.1%
IRT Property Co. .............................. 150,000 1,837,500
Meditrust Corp. .............................. 96,296 4,116,654
Patriot American Hospitality, Inc. ............ 110,000 3,630,000
------------
9,584,154
------------
Retail (Drug Stores)--0.5%
Rite Aid Corp. .............................. 75,651 4,491,778
------------
Services (Advertising/Marketing)--0.5%
Omnicom Group, Inc. ........................... 60,600 4,279,875
------------
Telecommunications (Long Distance)--1.7%
AT&T Corp. .................................... 291,100 14,245,706
------------
Tobacco--0.7%
Philip Morris Companies, Inc. ............... 146,300 5,797,138
------------
TOTAL COMMON STOCKS
(Identified cost $220,455,849) ......................... 251,521,893
------------
FOREIGN COMMON STOCKS--3.8%
Household Furn. & Appliances--0.6%
Philips Electronics NV ADR NY Registered
Shares (Netherlands) ..................... 66,400 5,204,100
------------
Insurance (Multi-Line)--0.7%
LaSalle Re Holdings Ltd. (Bermuda) ............ 40,000 1,340,000
Mid Ocean Ltd. (Bermuda) ..................... 20,000 1,297,500
PartnerRe Ltd. (Bermuda) ..................... 35,000 1,435,000
RenaissanceRe Holdings Ltd. (Bermuda) ......... 30,000 1,305,000
------------
5,377,500
------------
Miscellaneous (Diversified)--0.5%
Nordic American Tanker Shipping, Ltd.
(Norway) ................................. 250,000 4,343,750
------------
Oil (International Integrated)--0.3%
Elf Aquitane Sponsored ADR (France) ......... 40,700 2,513,225
------------
Railroads--0.5%
Canadian Pacific Ltd. (Canada) ............... 138,100 4,117,106
------------
Telephone--1.2%
BCE, Inc. (Canada) ........................... 350,000 9,778,125
------------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $24,066,703)............................. 31,333,806
------------
TOTAL LONG-TERM INVESTMENTS--89.6%
(Identified cost $681,368,601) .......................... 746,907,543
------------
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
Phoenix Income and Growth Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- --------- ----------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--8.1%
Commercial Paper--8.1%
Associates Corp. of North
America 5.73%, 11/3/97 ... A-1+ $ 160 $ 159,949
Ciesco L.P. 5.70%, 11/3/97 ... A-1+ 6,985 6,982,788
Corporate Asset Funding Co.,
Inc. 5.70%, 11/3/97 ...... A-1+ 9,320 9,317,049
Pitney Bowes Credit Corp.
5.57%, 11/4/97 ............ A-1+ 8,805 8,800,913
Schering Corp. 5.52%,
11/4/97 .................. A-1+ 5,430 5,427,502
BellSouth Telecommunications,
Inc. 5.48%, 11/5/97 ...... A-1+ 5,550 5,546,621
Sara Lee Corp. 5.51%,
11/5/97 .................. A-1+ 810 809,504
Procter & Gamble Co. 5.58%,
11/7/97 .................. A-1+ 1,440 1,438,661
SBC Communications Capital
Corp. 5.62%, 11/7/97 ...... A-1+ 5,000 4,995,317
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- --------- ----------------
<S> <C> <C> <C>
Commercial Paper--continued
General Re Corp. 5.50%,
11/10/97 .................. A-1+ $11,375 $ 11,359,359
Receivables Capital Corp.
5.54%, 11/14/97 ......... A-1+ 1,758 1,754,483
AlliedSignal, Inc. 5.50%,
11/25/97 .................. A-1 10,000 9,963,333
Greenwich Funding Corp.
5.55%, 12/1/97 ............ A-1+ 865 860,999
--------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $67,416,478) .......................... 67,416,478
--------------
TOTAL INVESTMENTS--97.7%
(Identified cost $748,785,079).......................... 814,324,021(a)
Cash and receivables, less liabilities--2.3% ........... 18,891,041
--------------
NET ASSETS--100.0% ...................................... $ 833,215,062
==============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $73,720,341 and gross
depreciation of $8,735,128 for income tax purposes. At October 31, 1997,
the aggregate cost of securities for federal income tax purposes was
$749,338,808.
(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,
1997, these securities amount to a value of $125,515,641 or 15.1% of net
assets.
(c) Non-income producing.
(d) As rated by Moody's, Fitch or Duff & Phelps.
(e) All or a portion segregated as collateral.
See Notes to Financial Statements.
6
<PAGE>
Phoenix Income and Growth Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $748,785,079) $814,324,021
Receivables
Investment securities sold 19,230,914
Interest and dividends 4,890,390
Fund shares sold 489,495
------------
Total assets 838,934,820
------------
Liabilities
Payables
Custodian 19,782
Investment securities purchased 3,564,208
Fund shares repurchased 831,755
Investment advisory fee 508,100
Distribution fee 425,046
Transfer agent fee 169,302
Financial agent fee 21,674
Trustees' fee 4,939
Accrued expenses 174,952
------------
Total liabilities 5,719,758
------------
Net Assets $833,215,062
============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $667,849,094
Undistributed net investment income 1,145,699
Accumulated net realized gain 98,681,327
Net unrealized appreciation 65,538,942
------------
Net Assets $833,215,062
============
Class A
Shares of beneficial interest outstanding, $0.0001 par
value, unlimited authorization
(Net Assets $460,387,791) 42,737,402
Net asset value per share $ 10.77
Offering price per share
$10.77/(1 - 4.75%) $ 11.31
Class B
Shares of beneficial interest outstanding, $0.0001 par
value, unlimited authorization
(Net Assets $372,827,271) 34,563,115
Net asset value and offering price per share $ 10.79
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Investment Income
Interest $12,814,211
Dividends 6,975,332
-----------
Total investment income 19,789,543
-----------
Expenses
Investment advisory fee 3,010,700
Distribution fee--Class A 592,126
Distribution fee--Class B 1,932,495
Financial agent 128,537
Transfer agent 539,383
Printing 73,582
Custodian 42,014
Registration 32,791
Professional 28,775
Trustees 10,908
Miscellaneous 20,572
-----------
Total expenses 6,411,883
-----------
Net investment income 13,377,660
-----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 71,441,837
Net realized loss on foreign currency transactions (693)
Net change in unrealized appreciation (depreciation)
on investments 5,210,129
-----------
Net gain on investments 76,651,273
-----------
Net increase in net assets resulting from
operations $90,028,933
===========
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
Phoenix Income and Growth Fund
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
October 31, 1997 Year Ended
(Unaudited) April 30, 1997
------------------ -----------------
<S> <C> <C>
From Operations
Net investment income $ 13,377,660 $ 29,735,468
Net realized gain 71,441,144 57,966,956
Net change in unrealized appreciation (depreciation) 5,210,129 (2,222,870)
------------- --------------
Increase in net assets resulting from operations 90,028,933 85,479,554
------------- --------------
From Distributions to Shareholders
Net investment income--Class A (8,808,922) (18,481,864)
Net investment income--Class B (5,743,722) (12,058,093)
Net realized gains--Class A -- (39,142,002)
Net realized gains--Class B -- (31,924,691)
------------- --------------
Decrease in net assets from distributions to shareholders (14,552,644) (101,606,650)
------------- --------------
From Share Transactions
Class A
Proceeds from sales of shares (1,220,830 and 3,227,767 shares, respectively) 12,962,371 32,305,915
Net asset value of shares issued from reinvestment of distributions
(625,268 and 4,817,814 shares, respectively) 6,672,008 47,024,383
Cost of shares repurchased (4,909,912 and 11,192,137 shares, respectively) (52,178,809) (112,400,718)
------------- --------------
Total (32,544,430) (33,070,420)
------------- --------------
Class B
Proceeds from sales of shares (915,537 and 2,616,679 shares, respectively) 9,709,270 26,139,385
Net asset value of shares issued from reinvestment of distributions
(401,781 and 3,430,811 shares, respectively) 4,293,890 33,531,068
Cost of shares repurchased (4,334,746 and 7,729,516 shares, respectively) (46,087,446) (77,728,213)
------------- --------------
Total (32,084,286) (18,057,760)
------------- --------------
Decrease in net assets from share transactions (64,628,716) (51,128,180)
------------- --------------
Net increase (decrease) in net assets 10,847,573 (67,255,276)
Net Assets
Beginning of period 822,367,489 889,622,765
------------- --------------
End of period (including undistributed net investment income of $1,145,699 and
$2,320,683, respectively) $ 833,215,062 $ 822,367,489
============= ==============
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
Phoenix Income and Growth Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Six Months Class A
Ended -----------------------------------------------------------------
10/31/97 Year Ended April 30,
(Unaudited) 1997 1996 1995 1994 1993
----------------- ------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.86 $10.08 $8.88 $9.33 $9.92 $9.13
Income from investment operations:
Net investment income 0.18 (1) 0.40 0.44 0.46 0.45 0.43(1)
Net realized and unrealized gain (loss) 0.93 0.66 1.22 0.03 (0.08) 0.88
------------ -------- -------- -------- -------- ----------
Total from investment operations 1.11 1.06 1.66 0.49 0.37 1.31
------------ -------- -------- -------- -------- ----------
Less distributions:
Dividends from net investment income (0.20) (0.40) (0.42) (0.45) (0.44) (0.44)
Dividends from net realized gains -- (0.88) (0.04) (0.33) (0.52) (0.08)
In excess of accumulated net realized gains -- -- -- (0.16) -- --
------------ -------- -------- -------- -------- ----------
Total distributions (0.20) (1.28) (0.46) (0.94) (0.96) (0.52)
------------ -------- -------- -------- -------- ----------
Change in net asset value 0.91 (0.22) 1.20 (0.45) (0.59) 0.79
------------ -------- -------- -------- -------- ----------
Net asset value, end of period $10.77 $9.86 $10.08 $8.88 $9.33 $9.92
============ ======== ======== ======== ======== ==========
Total return(2) 11.29%(4) 10.93% 19.01% 5.95% 3.38% 14.78%
Ratios/supplemental data:
Net assets, end of period (thousands) $460,388 $451,439 $493,454 $490,225 $524,855 $514,803
Ratio to average net assets of:
Expenses 1.15%(3) 1.18% 1.18% 1.16% 1.23% 1.33%
Net investment income 3.45%(3) 3.82% 4.39% 5.07% 4.57% 4.60%
Portfolio turnover 64%(4) 111% 107% 90% 88% 44%
Average commission rate paid(5) $0.0551 $0.0515 N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
Six Months Class B
Ended -----------------------------------------------------------------
10/31/97 Year Ended April 30,
(Unaudited) 1997 1996 1995 1994 1993
----------------- ------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.87 $10.09 $8.88 $9.32 $ 9.92 $ 9.13
Income from investment operations:
Net investment income 0.14 (1) 0.31 0.36 0.39 0.38 0.25(1)
Net realized and unrealized gain (loss) 0.94 0.67 1.23 0.04 (0.08) 1.00
------------ --------- --------- --------- --------- ----------
Total from investment operations 1.08 0.98 1.59 0.43 0.30 1.25
------------ --------- --------- --------- --------- ----------
Less distributions:
Dividends from net investment income (0.16) (0.32) (0.34) (0.38) (0.38) (0.38)
Dividends from net realized gains -- (0.88) (0.04) (0.33) (0.52) (0.08)
In excess of accumulated net realized gains -- -- -- (0.16) -- --
------------ --------- --------- --------- --------- ----------
Total distributions (0.16) (1.20) (0.38) (0.87) (0.90) (0.46)
------------ --------- --------- --------- --------- ----------
Change in net asset value 0.92 (0.22) 1.21 (0.44) (0.60) 0.79
------------ --------- --------- --------- --------- ----------
Net asset value, end of period $10.79 $9.87 $10.09 $8.88 $ 9.32 $ 9.92
============ ========= ========= ========= ========= ==========
Total return(2) 10.96%(4) 10.05% 18.14% 5.23% 2.62% 14.09%
Ratios/supplemental data:
Net assets, end of period (thousands) $372,827 $370,929 $396,169 $386,515 $378,847 $217,432
Ratio to average net assets of:
Expenses 1.90%(3) 1.93% 1.93% 1.91% 1.91% 2.03%
Net investment income 2.70%(3) 3.06% 3.64% 4.32% 3.98% 3.73%
Portfolio turnover 64%(4) 111% 107% 90% 88% 44%
Average commission rate paid(5) $0.0551 $0.0515 N/A N/A N/A N/A
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charge is not reflected in total return calculation.
(3) Annualized
(4) Not annualized
(5) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for securities
trades on which commissions are charged. This rate generally does not
reflect mark-ups, mark-downs, or spreads on shares traded on a principal
basis.
See Notes to Financial Statements.
9
<PAGE>
PHOENIX INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1997 (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'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. 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 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. 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 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
10
<PAGE>
PHOENIX INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1997 (Unaudited) (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 $20,481 for Class A shares and
deferred sales charges of $485,714 for Class B shares for the six months ended
October 31, 1997. 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 six months ended
October 31, 1997, $1,632,321 was retained by the Distributor, $859,164 was paid
out to unaffiliated participants and $33,136 was paid to W.S. Griffith, an
indirect subsidiary of PHL.
As Financial Agent of the Fund, PEPCO receives a fee for bookkeeping,
administration and pricing services at an annual rate of 0.05% of average daily
net assets up to $100 million, 0.04% of average daily net assets of $100
million to $300 million, 0.03% of average daily net assets of $300 million
through $500 million, and 0.015% of average daily net assets greater than $500
million; a minimum fee may apply. 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, 1997, transfer agent fees were $539,383 of which PEPCO
retained $223,319 which is net of fees paid to State Street.
At October 31, 1997, PHL and affiliates held 122 Class A shares and 17
Class B shares of the Fund with a combined value of $1,500.
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities, excluding short-term securities, for
the six months ended October 31, 1997, aggregated $514,616,490 and
$620,540,475, including $97,750,351 and $67,472,520 of U.S. Government and
Agency securities, respectively.
4. CAPITAL LOSS CARRYOVERS
Under current tax law, capital losses realized after October 31, 1996 may
be deferred and treated as occurring on the first day of the following fiscal
year. For the year ended April 30, 1997, the Fund deferred foreign currency
losses of $38,947.
This report is not authorized for distribution to prospective investors in the
Phoenix Income & Growth Fund unless preceded or accompanied by an effective
prospectus which includes information concerning the sales charge, the Fund's
record and other pertinent information.
11
<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
Michael E. Haylon, Executive Vice President
David R. Pepin, Executive Vice President
William J. Newman, Senior Vice President
John M. Hamlin, Vice President
William E. Keen, III, 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
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[BACK COVER]
-------------------
Phoenix Funds BULK RATE MAIL
PO Box 2200 U.S. POSTAGE
Enfield CT 06083-2200 PAID
SPRINGFIELD, MA
PERMIT NO. 444
-------------------
[LOGO] PHOENIX
DUFF & PHELPS
PDP 661 (12/97)
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 001
<NAME> PHOENIX INCOME & GROWTH FUND CLASS A
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> APR-30-1998
<PERIOD-START> MAY-01-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 748785
<INVESTMENTS-AT-VALUE> 814324
<RECEIVABLES> 24611
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 838935
<PAYABLE-FOR-SECURITIES> 3564
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2156
<TOTAL-LIABILITIES> 5720
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 667849
<SHARES-COMMON-STOCK> 42737
<SHARES-COMMON-PRIOR> 45801
<ACCUMULATED-NII-CURRENT> 1146
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 98681
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 65539
<NET-ASSETS> 833215
<DIVIDEND-INCOME> 6976
<INTEREST-INCOME> 12814
<OTHER-INCOME> 0
<EXPENSES-NET> (6412)
<NET-INVESTMENT-INCOME> 13378
<REALIZED-GAINS-CURRENT> 71441
<APPREC-INCREASE-CURRENT> 5210
<NET-CHANGE-FROM-OPS> 90029
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (8809)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1221
<NUMBER-OF-SHARES-REDEEMED> (4910)
<SHARES-REINVESTED> 625
<NET-CHANGE-IN-ASSETS> 8950
<ACCUMULATED-NII-PRIOR> 2320
<ACCUMULATED-GAINS-PRIOR> 27240
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3011
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6412
<AVERAGE-NET-ASSETS> 853187
<PER-SHARE-NAV-BEGIN> 9.86
<PER-SHARE-NII> 0.18
<PER-SHARE-GAIN-APPREC> 0.93
<PER-SHARE-DIVIDEND> (0.20)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.77
<EXPENSE-RATIO> 1.15
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 002
<NAME> PHOENIX INCOME & GROWTH FUND CLASS B
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> APR-30-1998
<PERIOD-START> MAY-01-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 748785
<INVESTMENTS-AT-VALUE> 814324
<RECEIVABLES> 24611
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 838935
<PAYABLE-FOR-SECURITIES> 3564
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2156
<TOTAL-LIABILITIES> 5720
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 667849
<SHARES-COMMON-STOCK> 34563
<SHARES-COMMON-PRIOR> 37581
<ACCUMULATED-NII-CURRENT> 1146
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 98681
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 65539
<NET-ASSETS> 833215
<DIVIDEND-INCOME> 6976
<INTEREST-INCOME> 12814
<OTHER-INCOME> 0
<EXPENSES-NET> (6412)
<NET-INVESTMENT-INCOME> 13378
<REALIZED-GAINS-CURRENT> 71441
<APPREC-INCREASE-CURRENT> 5210
<NET-CHANGE-FROM-OPS> 90029
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (5744)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 916
<NUMBER-OF-SHARES-REDEEMED> (4335)
<SHARES-REINVESTED> 402
<NET-CHANGE-IN-ASSETS> 1898
<ACCUMULATED-NII-PRIOR> 2320
<ACCUMULATED-GAINS-PRIOR> 27240
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3011
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6412
<AVERAGE-NET-ASSETS> 853187
<PER-SHARE-NAV-BEGIN> 9.87
<PER-SHARE-NII> 0.14
<PER-SHARE-GAIN-APPREC> 0.94
<PER-SHARE-DIVIDEND> (0.16)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.79
<EXPENSE-RATIO> 1.90
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
