<PAGE>
Phoenix Investment Partners
ANNUAL REPORT
APRIL 30, 2000
OAKHURST
Phoenix-Goodwin
Income & Growth
Fund
[LOGO]
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
[PHOTO]
We are pleased to provide this annual report for the Phoenix-Oakhurst Income &
Growth Fund for the 12 months ended April 30, 2000. We are also pleased to
report on the Fund's strong relative performance during the last fiscal year.
Class A shares returned 4.24% compared with an average return of 2.36% for a
peer group of 99 mutual funds with income as their investment objective,
according to Lipper, Inc.
On the following pages, your Fund's portfolio management team discusses their
investment strategy over the last year and their outlook for the next six
months. We hope you find these comments useful and informative. If you have any
questions, please call your financial advisor or a Phoenix customer service
representative at 1-800-243-1574 between 8 a.m. and 6 p.m. Eastern Time, Monday
through Friday.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
MAY 17, 2000
Mutual funds are not insured by the FDIC; are not
deposits or other obligations of a bank and are not
guaranteed by a bank; and are subject to
investment risks, including possible loss of the
principal invested.
1
<PAGE>
PHOENIX-OAKHURST INCOME & GROWTH FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Fund seeks current yield and conservation of capital as well as the
potential for long-term capital appreciation. Investors should note that the
Fund may invest in high-yield securities as well as foreign bonds. High-yield
bonds generally are subject to greater market fluctuations and risk of loss of
income and principal than are lower-yielding bonds. In addition, foreign
investing involves special risks, such as currency fluctuation, less public
disclosure and economic and political risks.
Q: HOW DID THE FUND PERFORM OVER THE LAST FISCAL YEAR?
A: The Fund performed in line with its benchmark index and outperformed the
average fund in its peer group. For the 12 months ended April 30, 2000, Class A
shares returned 4.24% and Class B shares earned 3.40% compared with an average
return of 2.36% for a peer group of 99 mutual funds with income as their
investment objective, according to Lipper, Inc. A composite index made up of 50%
of the return of the S&P 500 Index and 50% of the return of the Lehman Brothers
Aggregate Index(1) was up 6.02% for the same period. The return on Class C
shares, since their inception on August 27, 1999, is 4.12%. All performance
figures assume the reinvestment of distributions and are net of fees.
Q: WHAT WERE SOME OF THE MARKET FACTORS THAT AFFECTED PERFORMANCE?
A: The fiscal year was characterized by stronger-than-expected domestic economic
growth. The red-hot performance of technology stocks and initial public
offerings (IPOs) created a wealth-effect that resulted in a high level of
consumer confidence, record personal spending and a strong housing market. The
rapid pace of economic growth, record low unemployment, a shrinking pool of
available workers and rising energy prices put the Federal Reserve on the
defensive. To offset the potential for inflationary pressures, the Fed raised
interest rates five times.
Rising interest rates are meant to slow down the economy and head-off
inflation before it gets out of control. The rate increases had a negative
impact on what the press called the old-economy stocks. This had an unusual
influence, driving the price of new-economy (technology) stocks to stratospheric
valuation levels because they were believed to be immune to rising interest
rates. This created an "investment bubble" in certain high-priced technology
stocks which, currently, are in the process of being deflated. Offsetting the
negative influences of rising interest rates, were strong corporate earnings.
The strong earnings picture helped broad market measures, like the S&P 500
Index, post positive returns for the 12-month period.
Since the end of 1999, the bond market has been dominated by continued Fed
tightening, the Treasury's debt buy-back program, legislative
(1) THE FUND'S BENCHMARK IS A COMPOSITE INDEX MADE UP OF 50% OF THE S&P 500
INDEX RETURN AND 50% OF THE LEHMAN BROTHERS AGGREGATE BOND INDEX RETURN. THE
S&P 500 INDEX MEASURES STOCK MARKET TOTAL-RETURN PERFORMANCE. THE LEHMAN
BROTHERS AGGREGATE BOND MEASURES BROAD BOND MARKET TOTAL- RETURN
PERFORMANCE. THE INDICES ARE UNMANAGED AND NOT AVAILABLE FOR DIRECT
INVESTMENT.
2
<PAGE>
PHOENIX-OAKHURST INCOME & GROWTH FUND (CONTINUED)
moves to remove the implicit government backing of agency-issued debt and
volatile equity markets. Short-term rates have risen, driven up by Fed
tightening, while long-term rates have plummeted. As a result, by the end of the
second quarter, the market had experienced the steepest yield curve inversion
since March 1989.
Q: WHAT SECTORS OR STOCKS CONTRIBUTED MOST TO PERFORMANCE? WHAT FACTORS
DETRACTED FROM RESULTS?
A: The technology sector was the driving force of equity market returns over the
fiscal year. Likewise, technology was the best performing sector of the Fund's
equity holdings. Positions in the telecommunications equipment, computer
hardware and computer software industries had a positive impact on the Fund's
total return. Individual stocks like Oracle, Apple Computer, Nortel Networks,
Cisco Systems and Comverse Technology all posted stellar results. Positions in
the securities brokerage/ asset management group also helped results. Generous
fees from merger advisory, securities underwriting, trading and asset management
helped stocks in this industry report strong earnings. One of our best
performing stocks in this area was Morgan Stanley Dean Witter. Strong consumer
spending, especially for personal electronics and appliances, benefited our
position in Best Buy Company.
Unfortunately, rising interest rates had a negative impact on the Fund's
holdings in the consumer-cyclical, banking and utility sectors. Despite posting
very strong business results on record sales, our holding in Ford Motor (a
consumer cyclical stock) had a disappointing return. In banking, First Union and
Bank One had troubles with merger integration and credit card operations,
respectively. In the utility group, stocks were down across the board as rising
rates and inflationary expectations caused these stocks to mirror activity in
the bond market.
Our underweighting in Treasuries negatively affected fixed-income
performance as credit-sensitive issues failed to keep pace with the rally in
Treasuries. The best performing non-Treasury sector was emerging markets, which
were bolstered by improved fiscal policies, higher commodity prices and Mexico's
credit upgrade to investment grade. The domestic high-yield market suffered one
of its worst performances over the last six months as a result of outflows from
mutual funds and some credit defaults, which now appear to have peaked.
Q: WHAT IS YOUR OUTLOOK?
A: Equities most likely are sailing into a headwind, given that most strategists
believe the Fed is not done raising rates. Other factors that might have a
negative impact on share prices are slowing cash flows into equity mutual funds
and above-average price volatility. On the positive side, earnings are coming in
better than expected, and estimates for the S&P 500 Index have been rising.
We believe in having a well-diversified portfolio in this environment.
Technology is an important sector of the market and our portfolio, but we
believe there are additional opportunities that present growth and attractive
valuations. Energy, paper, and chemical stocks should all benefit from improved
pricing, global economic growth and restraint by producers from adding
additional plant capacity.
We will continue to emphasize the best risk-adjusted relative values,
underweighting Treasuries given the strong rally that has occurred in this
sector. We have been using the recent weakness in non-Treasury sectors to
selectively add to our
3
<PAGE>
PHOENIX-OAKHURST INCOME & GROWTH FUND (CONTINUED)
exposure to credit-sensitive issues. At current yield spreads, non-Treasury
sectors offer tremendous value, in our opinion. Two areas within the
investment-grade universe that we consider very attractive are taxable municipal
issues and commercial mortgage-backed obligations. We have also made a tactical
shift to domestic high-yield securities, which are trading at historically cheap
levels.
We are very positive on the outlook for the bond market. Real bond yields
(Treasury yields less inflation) are historically high, indicating that bonds as
an asset class are attractive. Based on our analysis of relative values at
current spreads (i.e., the yield difference between Treasury rates, the bond
market's value standard, and non-Treasury rates), Treasuries appear overbought,
while spread products are very attractive. In our opinion, the inversion in the
yield curve is unsustainable, and we believe the portfolio is well-positioned to
take advantage of current undervaluations that are due to technical, not
fundamental, reasons.
Looking ahead, we will continue to follow our disciplined investment
process, focusing on individual issue selection and careful sector analysis in
order to exploit the best relative values.
MAY 12, 2000
4
<PAGE>
Phoenix-Oakhurst Income & Growth Fund
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 4/30/00
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 Year 5 Years 10 Years TO 4/30/00 DATE
------ ------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Class A Shares at NAV(2) 4.24% 12.40% 11.63% -- --
Class A Shares at POP(3) (1.75) 11.08 10.97 -- --
Class B Shares at NAV(2) 3.40 11.56 -- 9.84% 1/3/92
Class B Shares with CDSC(4) (0.60) 11.56 -- 9.84 1/3/92
Class C Shares at NAV(2) -- -- -- 4.12 8/27/99
Class C Shares with CDSC(4) -- -- -- 3.12 8/27/99
Old Balanced Benchmark(9) 5.10 14.18 12.48 Note 5 Note 5
New Balanced Benchmark(10) 6.02 16.04 13.57 Note 6 Note 6
S&P 500 Index(11) 10.34 25.37 18.83 Note 7 Note 7
</TABLE>
(1) Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
(2) "NAV" (Net Asset Value) total returns do not include the effect of any
sales charge.
(3) "POP" (Public Offering Price) total returns include the effect of the
maximum front-end 5.75% sales charge.
(4) CDSC (contingent deferred sales charge) is applied to redemptions of
certain classes of shares that do not have a sales charge applied at the
time of purchase. CDSC charges for B shares decline from 5% to 0% over a
five year period. CDSC charges for C shares are 1% in the first year and 0%
thereafter.
(5) Index performance is 11.48% for Class A and Class B (since 12/31/91) and
6.37% for Class C (since 8/31/99).
(6) Index performance is 12.71% for Class A and Class B (since 12/31/91) and
7.19% for Class C (since 8/31/99).
(7) Index performance is 18.80% for Class A and Class B (since 1/3/92) and
7.66% for Class C (since 8/27/99).
(8) This chart illustrates POP returns on Class A Shares for ten years. Returns
on Class B and Class C Shares will vary due to differing sales charges.
(9) The Old Balanced Benchmark is a composite index made up of 40% of the S&P
500 Index return and 60% of the Lehman Brothers Aggregate Bond Index
return. The index's performance does not reflect sales charges.
(10) The New Balanced Benchmark is a composite index made up of 50% of the S&P
500 Index return and 50% of the Lehman Brothers Aggregate Bond Index
return. The index's performance does not reflect sales charges. This
benchmark was changed from the prior years to more accurately reflect the
allocation of the fund.
(11) The S&P 500 Index is a measure of stock market total return performance.
The S&P 500's performance does not reflect sales charges.
All returns represent past performance which may not be indicative of
future performance. The investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
GROWTH OF $10,000 PERIODS ENDING 4/30
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PHOENIX-OAKHURST INCOME & GROWTH FUND CLASS A(8) S&P 500 STOCK INDEX(11) OLD BALANCED BENCHMARK(9)
4/90 $9,425 $10,000 $10,000
<S> <C> <C> <C>
91 $10,801 $11,763 $11,647
92 $12,559 $13,406 $13,089
93 $14,416 $14,645 $14,621
94 $14,903 $15,428 $15,011
95 $15,791 $18,124 $16,713
96 $18,792 $23,610 $19,539
97 $20,847 $29,561 $22,313
98 $25,405 $41,761 $27,330
99 $27,176 $50,871 $30,856
00 $28,329 $56,133 $32,429
<CAPTION>
NEW BALANCED BENCHMARK(10)
4/90 $10,000
<S> <C>
91 $11,673
92 $13,153
93 $14,641
94 $15,096
95 $16,962
96 $20,194
97 $23,425
98 $29,399
99 $33,657
00 $35,683
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
4/30/90 in Class A shares and reflects the maximum sales charge of 5.75% on the
initial investment. Performance assumes dividends and capital gains are
reinvested. The performance of other share classes will be greater or less than
that shown based on differences in inception dates, fees and sales charges.
SECTOR WEIGHTINGS 4/30/00
As a percentage of equity holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 32%
Financials 14
Consumer Cyclicals 11
Capital Goods 9
Health Care 9
Consumer Staples 7
Communication Services 6
Other 12
</TABLE>
5
<PAGE>
Phoenix-Oakhurst Income & Growth Fund
TEN LARGEST EQUITY HOLDINGS AT APRIL 30, 2000 (AS A PERCENTAGE OF TOTAL NET
ASSETS)
<TABLE>
<C> <S> <C>
1. General Electric Co. 2.1%
DIVERSIFIED MANUFACTURING AND FINANCIAL SERVICES PROVIDER
2. Intel Corp. 1.6%
DESIGNS, DEVELOPS AND MARKETS ADVANCED MICROCOMPUTER COMPONENTS
3. Cisco Systems, Inc. 1.6%
LEADING PRODUCER OF SWITCHES AND ROUTERS FOR INTERNETWORKING
4. Microsoft Corp. 1.4%
WORLD'S LEADING COMPUTER SOFTWARE COMPANY
5. Citigroup, Inc. 1.2%
DIVERSIFIED FINANCIAL SERVICES HOLDING COMPANY
6. Morgan Stanley Dean Witter & Co. 1.1%
PROVIDES A BROAD RANGE OF CREDIT AND INVESTMENT PRODUCTS TO
INDIVIDUALS
7. Ford Motor Co. 1.1%
MANUFACTURES AND SELLS AUTOMOBILES, TRUCKS AND RELATED PARTS
GLOBALLY
8. Exxon Mobil Corp. 1.1%
WORLD'S LEADING OIL COMPANY
9. Wal-Mart Stores, Inc. 1.1%
ONE OF THE LARGEST U.S. DISCOUNT RETAILERS
10. Chase Manhattan Corp. (The) 1.0%
DIVERSIFIED FINANCIAL SERVICES HOLDING COMPANY
</TABLE>
INVESTMENTS AT APRIL 30, 2000
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--0.5%
U.S. TREASURY BONDS--0.1%
U.S. Treasury Bonds 6.25% 5/15/30... AAA $ 875 $ 909,701
U.S. TREASURY NOTES--0.4%
U.S. Treasury Notes 5.875%,
11/15/04............................ AAA 2,500 2,433,002
--------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES
(IDENTIFIED COST $3,362,725) 3,342,703
--------------------------------------------------------------------------
AGENCY MORTGAGE-BACKED SECURITIES--3.6%
GNMA 6.50%, '23-'28................. AAA 26,776 25,221,187
--------------------------------------------------------------------------
TOTAL AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $26,290,444) 25,221,187
--------------------------------------------------------------------------
AGENCY NON MORTGAGE-BACKED
SECURITIES--0.3%
FHLMC 6.625%, 9/15/09............... AAA 2,000 1,905,000
--------------------------------------------------------------------------
TOTAL AGENCY NON MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $1,997,529) 1,905,000
--------------------------------------------------------------------------
MUNICIPAL BONDS--7.2%
CALIFORNIA--3.0%
Fresno County Pension Obligation
Revenue Taxable 6.21%, 8/15/06...... AAA 5,600 5,236,000
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
CALIFORNIA--CONTINUED
Kern County Pension Obligation
Revenue Taxable 7.26%, 8/15/14...... AAA $ 4,500 $ 4,370,625
Long Beach Pension Obligation
Taxable 6.87%, 9/1/06............... AAA 2,750 2,660,625
Oakland Pension Obligation Taxable
Revenue Series A 6.91%, 12/15/07.... AAA 1,885 1,816,669
Pasadena Pension Funding Revenue
Taxable Series A 7.15%, 5/15/11..... AAA 3,000 2,910,000
San Bernardino County Pension
Obligation Revenue Taxable 6.87%,
8/1/08.............................. AAA 1,335 1,279,931
Sonoma County Pension Obligation
Revenue Taxable 6.625%, 6/1/13...... AAA 2,100 1,934,625
Ventura County Pension Obligation
Taxable 6.54%, 11/1/05.............. AAA 1,325 1,268,687
------------
21,477,162
------------
FLORIDA--0.4%
Tampa Solid Waste System Revenue
Taxable Series A 6.23%, 10/1/05..... AAA 2,820 2,640,225
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Income & Growth Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
ILLINOIS--0.5%
Illinois Educational Facilities
Authority-Loyola University Revenue
Taxable Series A 7.84%, 7/1/24...... AAA $ 3,410 $ 3,358,850
MASSACHUSETTS--0.2%
Massachusetts Port Authority Revenue
Taxable Series C 6.05%, 7/1/02...... AA- 1,575 1,529,719
NEW JERSEY--0.2%
New Jersey Sports & Exposition
Authority Revenue Taxable Series A
6.75%, 3/1/10....................... AAA 1,780 1,684,325
OREGON--0.4%
Multnomah County Pension Obligation
Revenue Taxable 7.20%, 6/1/10....... AAA 2,590 2,528,488
PENNSYLVANIA--1.3%
Philadelphia Authority For
Industrial Development Pension
Funding Retirement Systems Revenue
Taxable Series A 5.69%, 4/15/07..... AAA 3,000 2,703,750
Philadelphia Authority For
Industrial Development Pension
Funding Retirement Systems Revenue
Taxable Series A 5.79%, 4/15/09..... AAA 3,020 2,676,475
Pittsburgh Pension Obligation
Taxable Series C 6.50%, 3/1/17...... AAA 4,250 3,803,750
------------
9,183,975
------------
TEXAS--1.2%
Dallas-Fort Worth International
Airport Revenue Taxable 6.40%,
11/1/06............................. AAA 4,415 4,132,440
Dallas-Fort Worth International
Airport Revenue Taxable 6.40%,
11/1/07............................. AAA 1,200 1,113,600
Texas Taxable Veterans Limited
Series B 6.05%, 12/1/02............. AA 3,000 2,902,500
------------
8,148,540
------------
--------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $53,685,585) 50,551,284
--------------------------------------------------------------------------
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
ASSET-BACKED SECURITIES--4.5%
Associates Manufactured Housing Pass
Through 97-2, A6 7.075%, 3/15/28.... AAA $ 1,500 $ 1,428,516
Capita Equipment Receivables Trust
97-1, B 6.45%, 8/15/02.............. A+ 3,500 3,450,234
Discover Card Master Trust I 98-6, A
5.85%, 1/17/06...................... AAA 1,250 1,193,625
Discover Card Master Trust I 98-7, A
5.60%, 5/16/06...................... AAA 5,000 4,714,000
Ford Credit Auto Owner Trust 98-C, B
6.06%, 2/15/03...................... A 4,000 3,897,320
Green Tree Financial Corp. 96-2, M1
7.60%, 4/15/27...................... AA- 3,325 3,192,000
Honda Auto Lease Trust 99-A, A5
6.65%, 7/15/05...................... AAA 5,500 5,439,844
Premier Auto Trust 98-3, B 6.14%,
9/8/04.............................. A+ 2,500 2,433,311
Triangle Funding Ltd. 98-2A,
8.1312%, 10/15/04(d)................ BBB 6,000 5,964,375
--------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $32,459,606) 31,713,225
--------------------------------------------------------------------------
CORPORATE BONDS--6.1%
BANKS (MAJOR REGIONAL)--0.5%
U.S. Bank of Minnesota N.A. 6.30%,
7/15/08............................. A 1,500 1,380,000
Wachovia Corp. 5.625%, 12/15/08..... A+ 2,500 2,156,250
------------
3,536,250
------------
BROADCASTING (TELEVISION, RADIO & CABLE)--0.9%
CSC Holdings, Inc. 7.625%,
7/15/18............................. BB+ 3,000 2,602,500
Charter Communications Holdings LLC
8.625%, 4/1/09...................... B+ 900 790,875
Turner Broadcasting System, Inc.
8.375%, 7/1/13...................... BBB 3,000 3,026,250
------------
6,419,625
------------
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Phoenix-Oakhurst Income & Growth Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
COMMUNICATIONS EQUIPMENT--0.3%
Metromedia Fiber Network, Inc.
Series B 10%, 11/15/08.............. B+ $ 2,000 $ 1,910,000
COMPUTERS (SOFTWARE & SERVICES)--0.3%
Computer Associates International,
Inc. Series B 6.375%, 4/15/05....... BBB+ 2,350 2,179,625
ENTERTAINMENT--0.3%
Capitol Records, Inc. 144A 8.375%,
8/15/09(b).......................... BBB+ 2,400 2,418,000
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--0.4%
Station Casinos, Inc. 8.875%,
12/1/08............................. B+ 2,630 2,537,950
HEALTH CARE (HOSPITAL MANAGEMENT)--0.3%
Tenet Healthcare Corp. 8%,
1/15/05............................. BB+ 2,500 2,406,250
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.3%
Boston Scientific Corp. 6.625%,
3/15/05............................. BBB 2,425 2,258,281
LEISURE TIME (PRODUCTS)--0.3%
Bally Total Fitness Holding Corp.
Series D 9.875%, 10/15/07........... B- 2,500 2,300,000
PAPER & FOREST PRODUCTS--0.7%
Buckeye Technologies, Inc. 8.50%,
12/15/05............................ BB- 5,000 4,825,000
PUBLISHING--0.3%
American Lawyer Media, Inc. Series B
9.75%, 12/15/07..................... B 2,000 1,890,000
SERVICES (COMMERCIAL & CONSUMER)--0.3%
Budget Group, Inc. 9.125%, 4/1/06... BB- 2,500 2,037,500
TELECOMMUNICATIONS (LONG DISTANCE)--0.3%
Level 3 Communications, Inc. 9.125%,
5/1/08.............................. B 2,565 2,244,375
TELEPHONE--0.3%
Century Telephone Enterprises, Inc.
Series F 6.30%, 1/15/08............. BBB+ 2,500 2,237,500
TEXTILES (APPAREL)--0.4%
Collins & Aikman Products Co.
11.50%, 4/15/06..................... B 2,500 2,462,500
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
TRUCKS & PARTS--0.2%
Cummins Engine, Inc. 6.45%,
3/1/05.............................. BBB+ $ 1,250 $ 1,164,063
--------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $46,478,015) 42,826,919
--------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED
SECURITIES--14.9%
CS First Boston Mortgage Securities
Corp. 97-C2, A3 6.55%, 11/17/07..... AAA 5,000 4,637,500
CS First Boston Mortgage Securities
Corp. 97-C2, B 6.72%, 11/17/07...... Aa(c) 11,000 10,367,500
DLJ Commercial Mortgage Corp.
98-CF2, A1B 6.24%, 11/12/31......... Aaa(c) 2,800 2,555,000
DLJ Commercial Mortgage Corp.
99-CG1, A1B 6.46%, 1/10/09.......... Aaa(c) 2,000 1,837,187
DLJ Mortgage Acceptance Corp.
96-CF1, A1B 144A 7.58%,
2/12/06(b).......................... AAA 4,400 4,354,625
DLJ Mortgage Acceptance Corp.
97-CF2, B2 144A 7.14%,
11/15/08(b)......................... BBB- 5,000 4,454,687
First Union - Lehman Brothers - Bank
of America 98-C2, D 6.778%,
3/18/13............................. BBB 5,500 4,812,500
First Union - Lehman Brothers
Commercial Mortgage 97-C1, B 7.43%,
4/18/07............................. Aa(c) 2,500 2,418,750
First Union Commercial Mortgage
Trust 99-C1, A2 6.07%, 10/15/08..... AAA 1,800 1,629,844
G.E. Capital Mortgage Services, Inc.
94-9, M 6.50%, 2/25/24.............. AA 10,462 9,679,444
G.E. Capital Mortgage Services, Inc.
96-4, A5 7%, 3/25/26................ AAA 8,570 8,059,526
G.E. Capital Mortgage Services, Inc.
96-8, 1M 7.25%, 5/25/26............. AA 477 461,741
GMAC Commercial Mortgage Securities,
Inc. 97-C2, B 6.703%, 12/15/07...... Aa(c) 7,000 6,351,406
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Income & Growth Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
LB Commercial Conduit Mortgage Trust
98-C4, A1B 6.21%, 10/15/08.......... AAA $ 5,000 $ 4,534,375
LB Commercial Conduit Mortgage Trust
99-C2, A2 7.325%, 9/15/09........... Aaa(c) 2,000 1,970,625
Lehman Large Loan 97-LLI, B 6.95%,
3/12/07............................. AA+ 4,340 4,110,794
Nationslink Funding Corp. 96-1, B
7.69%, 12/20/05..................... AA 1,500 1,481,426
Norwest Asset Securities Corp.
99-13, B1 6.75%, 5/25/29............ AA(c) 9,108 8,510,281
Prudential Home Mortgage Securities
94-15, M 6.80%, 5/25/24............. Aaa(c) 7,834 7,390,968
Residential Funding Mortgage
Securities I 96-S1, A11 7.10%,
1/25/26............................. AAA 2,800 2,649,500
Residential Funding Mortgage
Securities I 96-S4, M1 7.25%,
2/25/26............................. AA 3,796 3,582,460
Securitized Asset Sales, Inc. 93-J,
2B 6.808%, 11/28/23................. AAA(c) 9,127 8,607,441
--------------------------------------------------------------------------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $110,643,976) 104,457,580
--------------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--9.3%
CHILE--0.4%
Republic of Chile 6.875% 04/28/09... A- 3,300 2,994,750
BULGARIA--0.9%
Republic of Bulgaria FLIRB Bearer
Series A 2.75%, 7/28/12(d).......... B(c) 6,305 4,397,738
Republic of Bulgaria IAB Series PDI
7.063%, 7/28/11(d).................. B(c) 2,750 2,083,125
------------
6,480,863
------------
COLOMBIA--0.2%
Republic of Colombia 10.875%,
3/9/04.............................. BB+ 1,225 1,151,500
COSTA RICA--0.6%
Republic of Costa Rica 144A 9.335%,
5/15/09(b).......................... BB 4,185 4,247,775
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
CROATIA--1.0%
Croatia Series B 7.0625%,
7/31/06(d).......................... BBB- $ 3,383 $ 3,120,891
Croatia Series A 7.0625%,
7/31/10(d).......................... BBB- 4,105 3,663,324
------------
6,784,215
------------
EL SALVADOR--0.4%
Republic of El Salvador 144A 9.50%,
8/15/06(b).......................... BB+ 2,500 2,562,500
MEXICO--1.8%
United Mexican States 10.375%,
2/17/09............................. BB+ 3,750 3,951,563
United Mexican States 11.375%,
9/15/16............................. BB+ 500 566,563
United Mexican States 11.50%,
5/15/26............................. BB+ 6,800 8,049,500
------------
12,567,626
------------
PANAMA--0.9%
Republic of Panama 8.875%,
9/30/27............................. BB+ 5,000 4,237,500
Republic of Panama 9.375%, 4/1/29... BB+ 2,000 1,897,500
------------
6,135,000
------------
PHILIPPINES--0.5%
Republic of Philippines 8.875%,
4/15/08............................. BB+ 3,900 3,578,250
POLAND--1.3%
Poland Bearer PDI 6%, 10/27/14(d)... BBB 6,535 5,885,584
Poland Registered PDI 6%,
10/27/14(d)......................... BBB 4,000 3,602,500
------------
9,488,084
------------
SOUTH KOREA--0.5%
Republic of Korea 8.875%, 4/15/08... BBB 3,680 3,801,808
TURKEY--0.8%
Republic of Turkey 11.875%,
11/5/04............................. B+ 2,000 2,100,000
Republic of Turkey 12.375%,
6/15/09............................. B+ 3,500 3,797,500
------------
5,897,500
------------
--------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(IDENTIFIED COST $65,916,944) 65,689,871
--------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Phoenix-Oakhurst Income & Growth Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
FOREIGN CORPORATE BONDS--1.8%
ARGENTINA--0.4%
Compania de Radiocomunicaciones
Moviles SA 144A 9.25%, 5/8/08(b).... BBB- $ 1,500 $ 1,346,250
Compania de Radiocomunicaciones
Moviles SA 9.25%, 5/8/08............ BBB- 1,300 1,166,750
------------
2,513,000
------------
CAYMAN ISLANDS--0.1%
Pemex Finance Ltd. 7.33%, 5/15/12... AAA 1,000 948,500
CHILE--0.4%
Compania Sud Americana de Vapores SA
RegS 7.375%, 12/8/03................ BBB 610 581,098
Petropower I Funding Trust 144A
7.36%, 2/15/14(b)................... BBB 2,242 1,938,507
------------
2,519,605
------------
GREECE--0.3%
Fage Dairy Industries SA 9%,
2/1/07.............................. BB 3,000 2,508,750
LUXEMBOURG--0.6%
Tyco International Group SA 6.375%,
6/15/05............................. A- 4,800 4,494,000
--------------------------------------------------------------------------
TOTAL FOREIGN CORPORATE BONDS
(IDENTIFIED COST $14,088,707) 12,983,855
--------------------------------------------------------------------------
<CAPTION>
SHARES
--------
COMMON STOCKS--47.4%
<S> <C> <C> <C>
AEROSPACE/DEFENSE--0.5%
Boeing Co. (The).................... 54,300 2,155,031
General Dynamics Corp............... 27,600 1,614,600
------------
3,769,631
------------
ALUMINUM--0.1%
Alcoa, Inc.......................... 14,200 921,225
AUTO PARTS & EQUIPMENT--0.0%
TRW, Inc............................ 3,300 193,050
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
AUTOMOBILES--1.5%
Ford Motor Co....................... 140,200 $ 7,667,187
General Motors Corp................. 29,000 2,715,125
------------
10,382,312
------------
BANKS (MAJOR REGIONAL)--0.7%
Bank One Corp....................... 20,500 625,250
Fleet Boston Financial Corp......... 54,700 1,938,431
Mellon Financial Corp............... 14,800 475,450
Wells Fargo & Co.................... 48,400 1,987,425
------------
5,026,556
------------
BANKS (MONEY CENTER)--1.3%
Chase Manhattan Corp. (The)......... 100,100 7,213,456
Morgan (J.P.) & Co., Inc............ 17,000 2,182,375
------------
9,395,831
------------
BANKS (REGIONAL)--0.5%
Cullen/Frost Bankers, Inc........... 36,800 908,500
Silicon Valley Bancshares(e)........ 16,600 1,025,050
UnionBanCal Corp.................... 62,200 1,722,162
------------
3,655,712
------------
BEVERAGES (ALCOHOLIC)--0.3%
Anheuser-Busch Cos., Inc............ 29,700 2,095,706
BEVERAGES (NON-ALCOHOLIC)--0.4%
Coca-Cola Co. (The)................. 43,700 2,056,631
PepsiCo, Inc........................ 17,700 649,369
------------
2,706,000
------------
BIOTECHNOLOGY--0.1%
Amgen, Inc.(e)...................... 16,400 918,400
CHEMICALS--0.5%
Dow Chemical Co. (The).............. 18,600 2,101,800
du Pont (E.I.) de Nemours & Co...... 29,000 1,375,687
------------
3,477,487
------------
CHEMICALS (SPECIALTY)--0.1%
Lubrizol Corp. (The)................ 34,000 871,250
COMMUNICATIONS EQUIPMENT--1.8%
ADC Telecommunications, Inc.(e)..... 15,600 947,700
Comverse Technology, Inc.(e)........ 12,000 1,070,250
Lucent Technologies, Inc............ 76,800 4,776,000
Motorola, Inc....................... 17,400 2,071,687
</TABLE>
10 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Income & Growth Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMUNICATIONS EQUIPMENT--CONTINUED
QUALCOMM, Inc.(e)................... 19,200 $ 2,082,000
Scientific-Atlanta, Inc............. 10,800 702,675
Tellabs, Inc.(e).................... 13,500 739,969
------------
12,390,281
------------
COMPUTERS (HARDWARE)--2.8%
Apple Computer, Inc.(e)............. 11,400 1,414,312
Compaq Computer Corp................ 49,000 1,433,250
Dell Computer Corp.(e).............. 49,600 2,486,200
Electronics for Imaging, Inc.(e).... 15,900 830,775
Hewlett-Packard Co.................. 34,500 4,657,500
International Business Machines
Corp................................ 45,100 5,034,287
NCR Corp.(e)........................ 12,800 494,400
Sun Microsystems, Inc.(e)........... 35,100 3,227,006
------------
19,577,730
------------
COMPUTERS (NETWORKING)--1.6%
Cisco Systems, Inc.(e).............. 160,200 11,106,366
COMPUTERS (PERIPHERALS)--0.7%
EMC Corp.(e)........................ 33,400 4,640,512
COMPUTERS (SOFTWARE & SERVICES)--3.7%
Adobe Systems, Inc.................. 5,400 653,062
America Online, Inc.(e)............. 59,200 3,540,900
Computer Associates International,
Inc................................. 39,576 2,208,835
Dendrite International, Inc.(e)..... 11,800 269,925
Informix Corp.(e)................... 23,700 260,700
Microsoft Corp.(e).................. 140,500 9,799,875
Oracle Corp.(e)..................... 71,600 5,723,525
Unisys Corp.(e)..................... 18,200 422,012
VERITAS Software Corp.(e)........... 8,800 943,937
Yahoo!, Inc.(e)..................... 14,100 1,836,525
------------
25,659,296
------------
CONSUMER FINANCE--0.1%
AmeriCredit Corp.(e)................ 10,000 186,875
PMI Group, Inc. (The)............... 3,100 150,156
Providian Financial Corp............ 2,700 237,769
------------
574,800
------------
CONTAINERS & PACKAGING (PAPER)--0.1%
Temple-Inland, Inc.................. 18,100 907,262
CONTAINERS (METAL & GLASS)--0.0%
Ball Corp........................... 9,100 286,650
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
DISTRIBUTORS (FOOD & HEALTH)--0.2%
Andrx Corp.(e)...................... 3,300 $ 168,919
Cardinal Health, Inc................ 14,000 770,875
SUPERVALU, Inc...................... 26,300 544,081
------------
1,483,875
------------
ELECTRIC COMPANIES--1.4%
Consolidated Edison, Inc............ 24,900 876,169
DTE Energy Co....................... 46,700 1,523,587
Duke Energy Corp.................... 13,000 747,500
Minnesota Power, Inc................ 83,500 1,539,531
PECO Energy Co...................... 36,600 1,525,762
Texas Utilities Co.................. 27,500 926,406
UtiliCorp United, Inc............... 126,400 2,433,200
------------
9,572,155
------------
ELECTRICAL EQUIPMENT--2.3%
General Electric Co................. 94,000 14,781,500
Rockwell International Corp......... 16,800 661,500
Solectron Corp.(e).................. 10,700 500,894
------------
15,943,894
------------
ELECTRONICS (INSTRUMENTATION)--0.1%
PerkinElmer, Inc.................... 16,700 914,325
ELECTRONICS (SEMICONDUCTORS)--2.8%
Adaptec, Inc.(e).................... 19,500 526,500
Advanced Micro Devices, Inc.(e)..... 7,000 614,250
Analog Devices, Inc.(e)............. 5,300 407,106
Conexant Systems, Inc.(e)........... 11,500 688,562
Cypress Semiconductor Corp.(e)...... 11,500 597,281
Integrated Device Technology,
Inc.(e)............................. 27,200 1,307,300
Intel Corp.......................... 91,000 11,539,937
National Semiconductor Corp.(e)..... 9,800 595,350
Texas Instruments, Inc.............. 21,400 3,485,525
------------
19,761,811
------------
ENTERTAINMENT--0.5%
Time Warner, Inc.................... 23,400 2,104,537
Viacom, Inc. Class B(e)............. 20,200 1,098,375
------------
3,202,912
------------
EQUIPMENT (SEMICONDUCTORS)--0.5%
Applied Materials, Inc.(e).......... 18,800 1,914,075
Electroglas, Inc.(e)................ 9,000 348,750
KLA-Tencor Corp.(e)................. 7,400 554,075
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Phoenix-Oakhurst Income & Growth Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
EQUIPMENT (SEMICONDUCTORS)--CONTINUED
Lam Research Corp.(e)............... 21,000 $ 963,375
------------
3,780,275
------------
FINANCIAL (DIVERSIFIED)--2.6%
Ambac Financial Group, Inc.......... 5,500 264,000
Citigroup, Inc...................... 144,800 8,606,550
Fannie Mae.......................... 32,400 1,954,125
Morgan Stanley Dean Witter & Co..... 101,000 7,751,750
------------
18,576,425
------------
FOODS--0.6%
International Home Foods, Inc.(e)... 48,000 699,000
Keebler Foods Co.(e)................ 29,000 911,687
Kellogg Co.(e)...................... 11,000 268,812
Quaker Oats Co. (The)............... 33,300 2,170,744
------------
4,050,243
------------
FOOTWEAR--0.1%
NIKE, Inc. Class B.................. 7,800 338,812
HEALTH CARE (DIVERSIFIED)--1.3%
Abbott Laboratories................. 20,000 768,750
Allergan, Inc. ..................... 8,700 512,212
American Home Products Corp......... 22,900 1,286,694
Bristol-Myers Squibb Co............. 31,700 1,662,269
Johnson & Johnson................... 33,400 2,755,500
Warner-Lambert Co................... 17,400 1,980,337
------------
8,965,762
------------
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--2.2%
Lilly (Eli) & Co.................... 36,700 2,837,369
Merck & Co., Inc.................... 68,600 4,767,700
Pfizer, Inc......................... 120,200 5,063,425
Pharmacia Corp...................... 17,731 885,442
Schering-Plough Corp................ 55,800 2,249,438
------------
15,803,374
------------
HEALTH CARE (GENERIC AND OTHER)--0.1%
Jones Pharma, Inc................... 10,000 288,125
Medicis Pharmaceutical Corp. Class
A(e)................................ 5,300 231,875
------------
520,000
------------
HEALTH CARE (MANAGED CARE)--0.4%
PacifiCare Health Systems,
Inc.(e)............................. 9,700 498,944
Trigon Healthcare, Inc.(e).......... 11,300 406,094
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
HEALTH CARE (MANAGED CARE)--CONTINUED
UnitedHealth Group, Inc............. 22,000 $ 1,467,125
Wellpoint Health Networks,
Inc.(e)............................. 10,400 767,000
------------
3,139,163
------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.1%
Bard (C.R.), Inc.................... 10,400 453,050
HOUSEHOLD FURNISHINGS & APPLIANCES--0.1%
Whirlpool Corp...................... 13,300 866,163
HOUSEHOLD PRODUCTS (NON-DURABLE)--0.5%
Church & Dwight Co., Inc............ 26,000 464,750
Kimberly-Clark Corp. ............... 12,700 737,394
Procter & Gamble Co. (The).......... 37,300 2,224,013
------------
3,426,157
------------
HOUSEWARES--0.2%
Tupperware Corp..................... 66,300 1,251,413
INSURANCE (LIFE/HEALTH)--0.2%
Lincoln National Corp............... 35,400 1,232,363
INSURANCE (MULTI-LINE)--0.1%
American International Group,
Inc................................. 1,625 178,242
CIGNA Corp.......................... 6,400 510,400
Loews Corp.......................... 6,100 336,263
------------
1,024,905
------------
INSURANCE (PROPERTY-CASUALTY)--0.0%
MGIC Investment Corp. .............. 6,800 325,125
INSURANCE BROKERS--0.3%
Gallagher (Arthur J.) & Co. ........ 48,600 1,810,350
INVESTMENT BANKING/BROKERAGE--0.8%
AXA Financial, Inc.................. 58,600 1,911,825
Lehman Brothers Holdings, Inc....... 5,000 410,313
Merrill Lynch & Co., Inc............ 30,600 3,119,288
Schwab (Charles) Corp. (The)........ 11,700 520,650
------------
5,962,076
------------
IRON & STEEL--0.0%
Nucor Corp.......................... 7,100 305,300
MACHINERY (DIVERSIFIED)--0.4%
Dover Corp.......................... 30,000 1,524,375
Ingersoll-Rand Co................... 22,000 1,032,625
</TABLE>
12 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Income & Growth Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
MACHINERY (DIVERSIFIED)--CONTINUED
Tecumseh Products Co. Class A....... 7,800 $ 362,213
------------
2,919,213
------------
MANUFACTURING (DIVERSIFIED)--1.0%
American Standard Companies,
Inc.(e)............................. 6,300 258,300
Minnesota Mining and Manufacturing
Co.................................. 10,800 934,200
Pentair, Inc. ...................... 4,600 175,950
Tyco International Ltd.............. 63,400 2,912,438
United Technologies Corp............ 41,800 2,599,438
------------
6,880,326
------------
MANUFACTURING (SPECIALIZED)--0.0%
Briggs & Stratton Corp.............. 7,100 272,463
METAL FABRICATORS--0.1%
Mueller Industries, Inc.(e)......... 18,800 619,225
NATURAL GAS--0.5%
El Paso Energy Corp................. 6,200 263,500
Equitable Resources, Inc............ 31,100 1,442,263
KeySpan Corp........................ 8,400 246,750
Sempra Energy....................... 69,300 1,286,381
------------
3,238,894
------------
OIL & GAS (DRILLING & EQUIPMENT)--0.0%
Tidewater, Inc...................... 8,200 243,950
OIL & GAS (EXPLORATION & PRODUCTION)--0.7%
Anadarko Petroleum Corp............. 26,000 1,129,375
Apache Corp......................... 37,600 1,821,250
Kerr-McGee Corp..................... 32,900 1,702,575
Noble Affiliates, Inc............... 9,100 328,169
------------
4,981,369
------------
OIL & GAS (REFINING & MARKETING)--0.1%
Ultramar Diamond Shamrock Corp...... 40,600 1,004,850
OIL (DOMESTIC INTEGRATED)--0.1%
Occidental Petroleum Corp. ......... 18,000 385,875
OIL (INTERNATIONAL INTEGRATED)--1.4%
Chevron Corp........................ 18,100 1,540,763
Exxon Mobil Corp.................... 97,136 7,546,253
Texaco, Inc......................... 15,200 752,400
------------
9,839,416
------------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
PAPER & FOREST PRODUCTS--0.6%
Champion International Corp......... 15,000 $ 986,250
Georgia-Pacific Group............... 30,600 1,124,550
International Paper Co.............. 9,800 360,150
Louisiana-Pacific Corp.............. 43,000 575,125
Westvaco Corp. ..................... 7,700 237,738
Weyerhaeuser Co..................... 18,900 1,009,969
Willamette Industries, Inc.......... 5,500 210,031
------------
4,503,813
------------
PHOTOGRAPHY/IMAGING--0.4%
Eastman Kodak Co.................... 37,300 2,086,469
In Focus Systems, Inc.(e)........... 19,600 586,775
------------
2,673,244
------------
PUBLISHING (NEWSPAPERS)--0.3%
Knight-Ridder, Inc.................. 27,400 1,344,313
Tribune Co. ........................ 16,000 622,000
------------
1,966,313
------------
RAILROADS--0.1%
Kansas City Southern Industries,
Inc.(e)............................. 4,400 316,250
Union Pacific Corp. ................ 7,600 320,150
------------
636,400
------------
RESTAURANTS--0.1%
Darden Restaurants, Inc............. 20,000 368,750
RETAIL (BUILDING SUPPLIES)--0.7%
Home Depot, Inc. (The).............. 62,623 3,510,802
Lowe's Cos., Inc. .................. 25,500 1,262,250
------------
4,773,052
------------
RETAIL (COMPUTERS & ELECTRONICS)--0.3%
Best Buy Co., Inc.(e)............... 12,000 969,000
Circuit City Stores-Circuit City
Group............................... 16,900 993,931
------------
1,962,931
------------
RETAIL (DEPARTMENT STORES)--0.1%
Federated Department Stores,
Inc.(e)............................. 15,400 523,600
RETAIL (DISCOUNTERS)--0.1%
Ross Stores, Inc. .................. 30,000 622,500
RETAIL (GENERAL MERCHANDISE)--1.4%
Sears, Roebuck & Co................. 23,000 842,375
Target Corp......................... 26,000 1,730,625
</TABLE>
See Notes to Financial Statements 13
<PAGE>
Phoenix-Oakhurst Income & Growth Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
RETAIL (GENERAL MERCHANDISE)--CONTINUED
Wal-Mart Stores, Inc................ 136,200 $ 7,542,075
------------
10,115,075
------------
RETAIL (SPECIALTY)--0.1%
Zale Corp.(e)....................... 11,200 462,000
RETAIL (SPECIALTY-APPAREL)--0.1%
Gap, Inc. (The)..................... 12,150 446,513
TJX Cos., Inc. (The)................ 18,300 351,131
------------
797,644
------------
SERVICES (ADVERTISING/MARKETING)--0.2%
Interpublic Group of Companies, Inc.
(The)............................... 4,200 172,200
Omnicom Group, Inc.................. 15,300 1,393,256
------------
1,565,456
------------
SERVICES (COMMERCIAL & CONSUMER)--0.1%
Block (H&R), Inc.................... 7,800 326,138
Cendant Corp.(e).................... 12,900 199,144
Convergys Corp.(b).................. 5,400 237,600
Hertz Corp. (The) Class A(e)........ 7,100 221,431
------------
984,313
------------
SERVICES (COMPUTER SYSTEMS)--0.4%
Electronic Data Systems Corp........ 28,600 1,966,250
MarchFirst, Inc.(e)................. 7,000 149,188
Sabre Holdings Corp................. 16,800 586,950
------------
2,702,388
------------
SERVICES (DATA PROCESSING)--0.3%
First Data Corp..................... 17,300 842,294
MedQuist, Inc.(e)................... 8,600 304,763
Paychex, Inc. ...................... 18,100 952,513
------------
2,099,570
------------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.5%
Nextel Communications, Inc. Class
A(e)................................ 11,200 1,225,700
Sprint Corp. (PCS Group)(e)......... 38,700 2,128,500
------------
3,354,200
------------
TELECOMMUNICATIONS (LONG DISTANCE)--1.0%
AT&T Corp. ......................... 78,000 3,641,625
MCI WorldCom, Inc.(e)............... 77,600 3,525,950
------------
7,167,575
------------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
TELEPHONE--1.6%
Bell Atlantic Corp. ................ 37,000 $ 2,192,250
BellSouth Corp. .................... 128,800 6,270,950
GTE Corp. .......................... 9,000 609,750
SBC Communications, Inc............. 48,500 2,124,906
------------
11,197,856
------------
TEXTILES (APPAREL)--0.1%
Jones Apparel Group, Inc.(e)........ 25,200 748,125
TOBACCO--0.4%
Philip Morris Companies, Inc........ 119,800 2,620,625
--------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $250,885,056) 333,496,996
--------------------------------------------------------------------------
FOREIGN COMMON STOCKS--1.3%
COMMUNICATIONS EQUIPMENT--0.5%
Nortel Networks Corp. (Canada)...... 30,100 3,408,825
FOODS--0.3%
Unilever NV NY Registered Shares
(Netherlands)....................... 45,900 2,091,319
OIL (INTERNATIONAL INTEGRATED)--0.4%
Royal Dutch Petroleum Co. NY
Registered Shares (Netherlands)..... 46,700 2,679,412
RAILROADS--0.1%
Canadian National Railway Co.
(Canada)............................ 26,200 735,238
--------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $8,092,946) 8,914,794
--------------------------------------------------------------------------
UNIT INVESTMENT TRUSTS--0.4%
S&P 500 Depository Receipts......... 18,800 2,734,225
--------------------------------------------------------------------------
TOTAL UNIT INVESTMENT TRUSTS
(IDENTIFIED COST $2,610,216) 2,734,225
--------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--97.3%
(IDENTIFIED COST $616,511,749) 683,837,639
--------------------------------------------------------------------------
</TABLE>
14 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Income & Growth Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
SHORT-TERM OBLIGATIONS--2.6%
<S> <C> <C> <C>
COMMERCIAL PAPER--2.6%
Pitney Bowes Credit Corp. 6.05%,
5/1/00.............................. A-1+ $ 6,135 $ 6,135,000
Corporate Asset Funding Co. 6.06%,
5/2/00.............................. A-1+ 2,000 1,999,663
Vermont American Corp. 5.97%,
5/4/00.............................. A-1+ 4,740 4,737,642
SBC Communications, Inc. 6.01%,
5/9/00.............................. A-1+ 3,000 2,995,993
American Home Products Corp. 6.10%,
6/5/00.............................. A-1 2,500 2,485,174
------------
18,353,472
------------
--------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $18,353,472) 18,353,472
--------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--99.9%
(IDENTIFIED COST $634,865,221) 702,191,111(a)
Cash and receivables, less liabilities--0.1% 1,011,081
------------
NET ASSETS--100.0% $703,202,192
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $103,226,961 and gross
depreciation of $35,996,445 for federal income tax purposes. At April 30,
2000, the aggregate cost of securities for federal income tax purposes was
$634,960,595.
(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,
2000, these securities amounted to a value of $21,322,344 or 3.0% of net
assets.
(c) As rated by Moodys, Fitch or Duff & Phelps.
(d) Variable or step coupon security; interest rate shown reflects the rate
currently in effect.
(e) Non-income producing.
See Notes to Financial Statements 15
<PAGE>
PHOENIX-OAKHURST INCOME & GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $634,865,221) $ 702,191,111
Cash 52,008
Receivables
Dividends and interest 5,227,437
Fund shares sold 49,356
Prepaid expenses 11,296
--------------
Total assets 707,531,208
--------------
LIABILITIES
Payables
Fund shares repurchased 2,866,311
Investment securities purchased 453,833
Investment advisory fee 411,136
Distribution fee 290,412
Transfer agent fee 145,562
Financial agent fee 32,058
Trustees' fee 11,223
Accrued expenses 118,481
--------------
Total liabilities 4,329,016
--------------
NET ASSETS $ 703,202,192
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 615,974,667
Undistributed net investment income 2,667,915
Accumulated net realized gain 17,233,720
Net unrealized appreciation 67,325,890
--------------
NET ASSETS $ 703,202,192
==============
CLASS A
Shares of beneficial interest outstanding, $0.0001 par
value, unlimited authorization (Net Assets $475,853,639) 48,809,390
Net asset value per share $9.75
Offering price per share $9.75/(1-5.75%) $10.34
CLASS B
Shares of beneficial interest outstanding, $0.0001 par
value, unlimited authorization (Net Assets $226,992,088) 23,227,764
Net asset value and offering price per share $9.77
CLASS C
Shares of beneficial interest outstanding, $0.0001 par
value, unlimited authorization (Net Assets $356,465) 36,204
Net asset value and offering price per share $9.85
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 32,748,651
Dividends 4,741,672
Foreign taxes withheld (32,536)
--------------
Total investment income 37,457,787
--------------
EXPENSES
Investment advisory fee 5,496,149
Distribution fee, Class A 1,288,979
Distribution fee, Class B 2,694,140
Distribution fee, Class C 1,512
Financial agent fee 387,906
Transfer agent 1,162,219
Custodian 98,037
Printing 56,415
Professional 29,177
Trustees 18,294
Registration 9,983
Miscellaneous 25,560
--------------
Total expenses 11,268,371
Custodian fees paid indirectly (4,963)
--------------
Net expenses 11,263,408
--------------
NET INVESTMENT INCOME 26,194,379
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 20,554,052
Net change in unrealized appreciation (depreciation) on
investments (18,703,927)
--------------
NET GAIN ON INVESTMENTS 1,850,125
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 28,044,504
==============
</TABLE>
16 See Notes to Financial Statements
<PAGE>
PHOENIX-OAKHURST INCOME & GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR
ENDED YEAR ENDED
4/30/00 4/30/99
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 26,194,379 $ 28,357,686
Net realized gain (loss) 20,554,052 7,074,081
Net change in unrealized appreciation
(depreciation) (18,703,927) 26,170,493
------------ ------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS 28,044,504 61,602,260
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (17,689,945) (19,397,606)
Net investment income, Class B (6,703,782) (10,518,250)
Net investment income, Class C (3,929) --
Net realized gains, Class A -- (43,303,686)
Net realized gains, Class B -- (24,388,234)
In excess of net realized gains, Class A -- (1,947,627)
In excess of net realized gains, Class B -- (1,096,886)
------------ ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO
SHAREHOLDERS (24,397,656) (100,652,289)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (2,180,916 and
4,894,329 shares, respectively) 21,015,756 49,000,837
Net asset value of shares issued from
Convertible Fund merger (0 and 16,132,079
shares, respectively) -- 156,615,165
Net asset value of shares issued from
reinvestment of distributions
(1,424,076 and 5,607,651 shares, respectively) 13,693,891 52,935,795
Cost of shares repurchased (13,180,013 and
13,333,886 shares, respectively) (126,494,460) (131,232,769)
------------ ------------
Total (91,784,813) 127,319,028
------------ ------------
CLASS B
Proceeds from sales of shares (610,440 and
1,583,031 shares, respectively) 5,852,733 15,437,928
Net asset value of shares issued from
Convertible Fund merger (0 and 740,793 shares,
respectively) -- 7,207,950
Net asset value of shares issued from
reinvestment of distributions
(564,766 and 3,039,308 shares, respectively) 5,454,908 28,805,790
Cost of shares repurchased (10,023,331 and
8,694,838 shares, respectively) (96,376,342) (85,529,726)
------------ ------------
Total (85,068,701) (34,078,058)
------------ ------------
CLASS C
Proceeds from sales of shares (35,821 and 0
shares, respectively) 346,138 --
Net asset value of shares issued from
reinvestment of distributions
(383 and 0 shares, respectively) 3,800 --
------------ ------------
Total 349,938 --
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE
TRANSACTIONS (176,503,576) 93,240,970
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (172,856,728) 54,190,941
NET ASSETS
Beginning of period 876,058,920 821,867,979
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED NET
INVESTMENT INCOME OF
$2,667,915 AND $734,403, RESPECTIVELY] $703,202,192 $876,058,920
============ ============
</TABLE>
See Notes to Financial Statements 17
<PAGE>
PHOENIX-OAKHURST INCOME & GROWTH FUND
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------
YEAR ENDED APRIL 30,
-----------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.68 $ 10.20 $ 9.86 $ 10.08 $ 8.88
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.34(3) 0.36 0.38 0.40 0.44
Net realized and unrealized gain (loss) 0.06 0.29 1.63 0.66 1.22
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.40 0.65 2.01 1.06 1.66
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.33) (0.38) (0.39) (0.40) (0.42)
Dividends from net realized gains (0.76) (1.28) (0.88) (0.04)
In excess of net realized gains -- (0.03) -- -- --
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (0.33) (1.17) (1.67) (1.28) (0.46)
--------- --------- --------- --------- ---------
Change in net asset value 0.07 (0.52) 0.34 (0.22) 1.20
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 9.75 $ 9.68 $ 10.20 $ 9.86 $ 10.08
========= ========= ========= ========= =========
Total return(1) 4.24% 6.97% 21.87% 10.93% 19.01%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $475,854 $565,276 $459,992 $451,439 $493,454
RATIO TO AVERAGE NET ASSETS OF:
Expenses 1.18%(2) 1.17%(2) 1.13% 1.18% 1.18%
Net investment income 3.59% 3.64% 3.61% 3.82% 4.39%
Portfolio turnover 58% 68% 155% 111% 107%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------
YEAR ENDED APRIL 30,
-----------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.69 $ 10.22 $ 9.87 $ 10.09 $ 8.88
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.27(3) 0.29 0.30 0.31 0.36
Net realized and unrealized gain (loss) 0.06 0.29 1.64 0.67 1.23
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.33 0.58 1.94 0.98 1.59
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.25) (0.32) (0.31) (0.32) (0.34)
Dividends from net realized gains (0.76) (1.28) (0.88) (0.04)
In excess of net realized gains -- (0.03) -- -- --
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (0.25) (1.11) (1.59) (1.20) (0.38)
--------- --------- --------- --------- ---------
Change in net asset value 0.08 (0.53) 0.35 (0.22) 1.21
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 9.77 $ 9.69 $ 10.22 $ 9.87 $ 10.09
========= ========= ========= ========= =========
Total return(1) 3.40% 6.18% 21.03% 10.05% 18.14%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $226,992 $310,783 $361,876 $370,929 $396,169
RATIO TO AVERAGE NET ASSETS OF:
Expenses 1.93%(2) 1.92%(2) 1.88% 1.93% 1.93%
Net investment income 2.84% 2.92% 2.86% 3.06% 3.64%
Portfolio turnover 58% 68% 155% 111% 107%
</TABLE>
(1) Maximum sales charge is not reflected in the total return calculation.
(2) The ratio of operating expenses to average net assets excludes the effects
of expense offsets for custodian fees; if expense offsets were included,
the ratio would not significantly differ.
(3) Computed using average shares outstanding.
18 See Notes to Financial Statements
<PAGE>
PHOENIX-OAKHURST INCOME & GROWTH FUND
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
----------
FROM
INCEPTION
8/27/99 TO
4/30/00
<S> <C>
Net asset value, beginning of period $ 9.61
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.18(5)
Net realized and unrealized gain (loss) 0.23
------
TOTAL FROM INVESTMENT OPERATIONS 0.41
------
LESS DISTRIBUTIONS
Dividends from net investment income (0.17)
------
TOTAL DISTRIBUTIONS (0.17)
------
Change in net asset value 0.24
------
NET ASSET VALUE, END OF PERIOD $ 9.85
======
Total return(1) 4.12%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $356
RATIO TO AVERAGE NET ASSETS OF:
Expenses 1.93%(2)(3)
Net investment income 2.81%(3)
Portfolio turnover 58%(4)
</TABLE>
(1) Maximum sales charge is not reflected in the total return calculation.
(2) The ratio of operating expenses to average net assets excludes the effects
of expense offsets for custodian fees; if expense offsets were included,
the ratio would not significantly differ.
(3) Annualized.
(4) Not Annualized.
(5) Computed using average shares outstanding.
See Notes to Financial Statements 19
<PAGE>
PHOENIX-OAKHURST INCOME & GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2000
1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix-Oakhurst Income & 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 Class A, Class B and Class C shares. Effective
April 3, 2000, Class A shares are sold with a front-end sales charge of up to
5.75%. Prior to that date, the maximum sales charge was 4.75%. Class B shares
are sold with a contingent deferred sales charge which declines from 5% to zero
depending on the period of time the shares are held. Class C shares are sold
with a 1% contingent deferred sales charge if redeemed within one year of
purchase. All classes of shares have identical voting, dividend, liquidation and
other rights and the same terms and conditions, except that each class bears
different distribution expenses and has exclusive voting rights with respect to
its distribution plan. Income and expenses of the 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 accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets, liabilities,
revenues and expenses. Actual results could differ from those estimates.
A. SECURITY VALUATION:
Equity securities are valued at the last sale price, or if there had been no
sale that day, at the last bid price. Debt securities are valued on the basis of
broker quotations or valuations provided by a pricing service which utilizes
information with respect to 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.
F. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS:
The Fund may engage in when-issued or delayed delivery transactions. The Fund
records when-issued securities on the trade date and maintains collateral for
the securities purchased. Securities purchased on a when-issued or delayed
delivery basis begin earning interest on the settlement date.
G. SECURITY LENDING:
The Fund loans securities to qualified brokers through an agreement with State
Street Bank & Trust (the Custodian). Under the terms of the agreement, the Fund
receives collateral with a market value not less than 100% of the market value
of loaned securities. Collateral is adjusted daily in connection with changes in
the market value of securities on loan. Collateral consists of cash, securities
20
<PAGE>
PHOENIX-OAKHURST INCOME & GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2000 (CONTINUED)
issued or guaranteed by the U.S. Government or its agencies and the sovereign
debt of foreign countries. Interest earned on the collateral and premiums paid
by the borrower are recorded as income by the Fund net of fees charged by the
Custodian for its services in connection with this securities lending program.
Lending portfolio securities involves a risk of delay in the recovery of the
loaned securities or in the foreclosure on collateral.
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
As compensation for its services to the Fund, the adviser, Phoenix Investment
Counsel, Inc. ("PIC"), 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 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 $25,428 for Class A shares and deferred
sales charges of $295,530 for Class B shares for the year ended April 30, 2000.
In addition, the Fund pays PEPCO a distribution fee at an annual rate of 0.25%
for Class A shares, 1.00% for Class B shares and 1.00% for Class C shares
applied to 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, 2000, $2,258,137 was earned by the Distributor, $1,639,320 was
paid to unaffiliated participants and $87,174 was paid to W.S. Griffith, an
indirect subsidiary of PHL.
As Financial Agent of the Fund, PEPCO receives a financial agent fee equal to
the sum of (1) the documented cost of fund accounting and related services
provided by PFPC, Inc. (subagent to PEPCO), plus (2) the documented cost to
PEPCO to provide financial reporting, tax services and oversight of subagent's
performance. The current fee schedule of PFPC, Inc. ranges from 0.085% to
0.0125% of the average daily net asset values of the Fund. Certain minimum fees
and fee waivers may apply.
PEPCO serves as the Fund's Transfer Agent with State Street Bank and Trust
Company as subtransfer agent. For the year ended April 30, 2000, transfer agent
fees were $1,162,219 of which PEPCO retained $511,208 which is net of fees paid
to State Street.
At April 30, 2000, PHL and affiliates held 187 Class A shares and 10,581
Class C shares of the Fund with a combined value of $106,053.
3. PURCHASE AND SALE OF SECURITIES
During the year ended April 30, 2000, purchases and sales of investments,
excluding short-term securities and U.S. Government and agency securities,
amounted to $355,869,652 and $511,098,616, respectively. Purchases and sales of
long-term U.S. Government and agency securities amounted to $91,466,097 and
$140,473,550, respectively.
4. CREDIT RISK
In countries with limited or developing markets, investments may present
greater risks than in more developed markets and the prices of such investments
may be volatile. The consequences of political, social or economic changes in
these markets may have disruptive effects on the market prices of these
investments and the income they generate, as well as a Fund's ability to
repatriate such amounts.
5. 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, 2000, the Fund decreased
capital paid in on shares of beneficial interest by $9,714, increased
undistributed net investment income by $136,789 and decreased accumulated net
realized gain by $127,075.
21
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[LOGO]
To the Trustees and Shareholders of
Phoenix-Oakhurst Income & 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-Oakhurst Income & Growth Fund (the "Fund") at April 30, 2000, 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 presented, in conformity with accounting principles
generally accepted in the United States. 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 auditing standards
generally accepted in the United States, 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,
2000, by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
June 1, 2000
22
<PAGE>
PHOENIX-OAKHURST INCOME & GROWTH FUND
101 Munson Street
Greenfield, Massachusetts 01301
TRUSTEES
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
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
OFFICERS
Philip R. McLoughlin, President
Michael E. Haylon, Executive Vice President
William R. Moyer, Executive Vice President
John F. Sharry, Executive Vice President
James D. Wehr, Senior Vice President
Steven L. Colton, Vice President
Robert S. Driessen, Vice President
Michael Kearney, Vice President
Christopher J. Kelleher, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Nancy J. Engberg, Assistant Secretary
INVESTMENT ADVISER
Phoenix Investment Counsel, Inc.
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
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
160 Federal Street
Boston, Massachusetts 02110
HOW TO CONTACT US
The Fund Connection 1-800-243-1574
Customer Service 1-800-243-1574
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
WWW.PHOENIXINVESTMENTS.COM
<PAGE>
PHOENIX EQUITY PLANNING CORPORATION
PO Box 2200
Enfield CT 06083-2200
PRSRT STD
U.S. Postage
PAID
Andrew
Associates
[LOGO]
For more information about
Phoenix mutual funds, please call
your financial representative or
contact us at 1-800-243-4361 or
WWW.PHOENIXINVESTMENTS.COM
PXP 743 (6/00)
