[FRONT COVER]
October 31, 1997
P H O E N I X
FUNDS
SEMIANNUAL REPORT
Phoenix Strategic
Equity Series Fund
- SMALL CAP FUND
- STRATEGIC THEME FUND
- EQUITY OPPORTUNITIES FUND
[LOGOTYPE] PHOENIX
DUFF & PHELPS
<PAGE>
Chairman's Message
Dear Fellow Shareholder,
We're pleased to provide this report for Strategic Equity Series Fund for
the six months ended October 31, 1997. This has been a remarkable time for the
financial markets, particularly equities, but market volatility has been high.
In October, for example, the stock market recorded its largest decline in
history, only to post its biggest one-day advance ever the next day.
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 SMALL CAP FUND
INVESTOR PROFILE
Phoenix Small Cap Fund is designed for long-term investors seeking
above-average capital appreciation through investments in small-capitalization
stocks.
INVESTMENT ADVlSER'S REPORT
Since inception the Phoenix Small Cap Fund has significantly outperformed
its benchmark, returning 101%, or three times the Russell 2000 Growth Index
return of 35% for the same time period.* For the six months ended October 31,
1997, the Fund continued its strong performance, returning 41.76% for Class A
shares and 41.20% for Class B shares compared with 30.70% for the Russell 2000
Growth Index. This continued strong performance relative to its benchmark has
placed the Fund in the top 8% of a peer universe of 511 funds, according to
Lipper Analytical Services, Inc. All performance figures assume reinvestment of
dividends and exclude the effect of sales charges.
After a difficult first quarter, the small-cap sector put in a strong
showing relative to large caps as large-cap profit growth began to come under
scrutiny, particularly among multinational corporations with exposure to Asia.
In addition, relative valuations in the small-cap sector had become increasingly
attractive. At the beginning of the reporting period, the Russell 2000 Index,
which is representative of the small-cap group, relative to the Russell 1000
Index, a proxy for large-cap stocks, was trading approximately 10% below the
historical average on a forecasted price-to-earnings basis.
The Fund exhibited strong performance against a backdrop of increased
volatility. Our Energy Technology and Deep Water Dynamic themes enhanced
performance as these stocks exhibited solid profit growth and upward earnings
revisions. Exposure to technology in two themes--Internet Commerce Ignition and
Telecommunications Convergence--helped the Fund overcome a very selective
technology environment. An increased weighting in Deregulating Financial
Services and discretionary use of cash has mitigated our exposure to an
increasingly difficult market environment.
OUTLOOK
We remain positive on small caps in the near term as investors refocus on
the U.S. market. Small-cap stocks have much less exposure to overseas markets,
with only 7.5% of pretax income coming from markets outside of the U.S. Despite
the recent rally, small-cap valuations are still attractive. With a trend toward
more positive earnings surprises, small-cap growth should be well-positioned.
*The Russell 2000 Growth Index is an unmanaged, commonly used index of total
return performance for small-cap companies with above-average growth
orientation.
1
<PAGE>
Phoenix Small Cap Fund
- --------------------------------------------------------------------------------
[PIE CHART]
Short-Term & Equivalents 32.0%
Energy Technology 11.5%
Deep Water Dynamics 7.6%
Deregulating Financial Services 7.1%
21st Century Medicine 5.3%
Viral Threat 4.7%
Biotech Breakthroughs 4.3%
Genomic Revolution 4.2%
Temporary Teams 3.2%
America's Educational Crisis 3.2%
Telecom Service Providers 3.0%
Next Destination Data 2.7%
Special Situations 2.7%
Internet Commerce Ignition 2.5%
Software Solutions 2.1%
Real Estate Development 2.1%
Move to Outsourcing 1.8%
[/PIE CHART]
2
<PAGE>
Phoenix Small Cap Fund
- --------------------------------------------------------------------------------
INVESTMENTS AT OCTOBER 31, 1997
(Unaudited)
SHARES VALUE
--------- -------------
COMMON STOCKS--62.6%
Banks--Northeast--1.3%
First International Bancorp, Inc. (b) ...... 80,000 $ 1,300,000
TR Financial Corp. ........................ 108,000 3,537,000
-----------
4,837,000
-----------
Banks--Southeast--1.0%
Hibernia Corp. Class A ..................... 203,500 3,624,844
-----------
Banks--Southwest--0.5%
Prime Bancshares, Inc. (b) ............... 100,000 1,906,250
-----------
Banks--West--0.9%
First Security Corp. ..................... 120,000 3,480,000
-----------
Commercial Services--Miscellaneous--3.7%
CSG Systems International, Inc. (b) ...... 45,000 1,763,438
Staff Leasing, Inc. (b) .................. 230,000 5,663,750
StaffMark, Inc. (b) ........................ 140,000 4,340,000
Syntel, Inc. (b) ........................... 125,000 1,750,000
-----------
13,517,188
-----------
Commercial Services--Schools--2.8%
Apollo Group, Inc. Class A (b) ............ 90,000 3,802,500
EduTrek International, Inc. (b) ............ 10,000 245,000
Sylvan Learning Systems, Inc. (b) ......... 148,500 6,255,562
-----------
10,303,062
-----------
Computer--Services--3.2%
At Home Corp. Series A (b) ............... 220,000 5,307,500
Complete Business Solutions, Inc. (b) ...... 140,000 4,935,000
Excite, Inc. (b) ........................... 59,000 1,471,312
-----------
11,713,812
-----------
Computer--Software--1.7%
Advantage Learning Systems, Inc. (b) ...... 52,500 1,325,625
Natural Microsystems Corp. (b) ............ 101,000 4,822,750
Netspeak Corp. (b) ........................ 9,600 206,400
-----------
6,354,775
-----------
Electric--Measuring Instruments--0.1%
FARO Technologies, Inc. (b) ............... 40,000 545,000
-----------
Finance--Equity REITS--1.8%
CCA Prison Realty Trust .................. 34,000 1,173,000
Crescent Real Estate Equities Co. ......... 98,000 3,528,000
SL Green Realty Corp. ..................... 75,000 1,879,687
-----------
6,580,687
-----------
Finance--Savings & Loans--2.0%
Sovereign Bancorp, Inc. .................. 205,000 3,638,750
TCF Financial Corp. ........................ 65,000 3,696,875
-----------
7,335,625
-----------
Insurance--Property/Casualty/Title--1.3%
American Bankers Insurance Group, Inc. ..... 125,000 4,671,875
-----------
SHARES VALUE
--------- -------------
Leisure--Services--0.2%
Travel Services International, Inc. (b) .... 30,000 $ 671,250
-----------
Machine--Tools & Related Products--0.1%
Industrial Distribution Group, Inc. (b) .... 15,000 290,625
-----------
Media--Radio/TV--0.8%
Heftel Broadcasting Corp. Class A (b) .... 45,100 2,999,150
-----------
Medical--Biomed/Genetics--10.0%
ArQule, Inc. (b) ........................... 100,100 2,152,150
Aviron (b) ................................. 235,000 5,140,625
Guilford Pharmaceuticals, Inc. (b) ......... 200,000 4,875,000
Human Genome Sciences, Inc. (b) ............ 90,000 3,690,000
Hyseq, Inc. (b) ........................... 161,000 2,294,250
IDEC Pharmaceuticals Corp. (b) ............ 138,000 5,261,250
MedImmune, Inc. (b) ........................ 186,000 7,416,750
Protein Design Labs, Inc. (b) ............ 113,900 5,680,763
-----------
36,510,788
-----------
Medical--Ethical Drugs--5.7%
Anesta Corp. (b) ........................... 193,000 4,197,750
Inhale Therapeutic Systems (b) ............ 130,800 3,564,300
Kendle International, Inc. (b) ............ 150,000 2,250,000
Pathogenesis Corp. (b) ..................... 125,000 4,500,000
Theragenics Corp. (b) ..................... 150,000 6,543,750
-----------
21,055,800
-----------
Medical--Instruments--0.4%
Cyberonics, Inc. (b) ..................... 125,000 1,671,875
-----------
Medical--Products--1.9%
Affymetrix, Inc. (b) ..................... 194,000 7,105,250
-----------
Medical/Dental--Supplies--0.3%
Ocular Sciences, Inc. (b) .................. 47,800 1,051,600
-----------
Metal--Steel Pipe & Tube--1.3%
Maverick Tube Corp. (b) .................. 135,000 4,758,750
-----------
Oil & Gas--Drilling--1.0%
Precision Drilling Corp. (b) ............... 120,000 3,690,000
-----------
Oil & Gas--Field Services--7.6%
Cal Dive International, Inc. (b) ......... 222,700 6,959,375
Friede Goldman International, Inc. (b) . 132,500 5,275,156
Pride International, Inc. (b) ............ 210,000 6,930,000
Tuboscope, Inc. (b) ........................ 270,000 8,572,500
-----------
27,737,031
-----------
Oil & Gas--Machinery/Equipment--4.7%
Camco International, Inc. .................. 26,000 1,878,500
Dril-Quip, Inc. (b) ........................ 48,900 1,754,287
Gulf Island Fabrication, Inc. (b) ......... 134,000 4,355,000
National-Oilwell, Inc. (b) ............... 80,000 6,125,000
Varco International, Inc. (b) ............ 50,000 3,046,875
-----------
17,159,662
-----------
See Notes to Financial Statements
3
<PAGE>
Phoenix Small Cap Fund
- --------------------------------------------------------------------------------
SHARES VALUE
--------- -------------
Oil & Gas--U.S. Exploration & Production--0.9%
Forcenergy, Inc. (b) .................. 104,000 $ 3,393,000
------------
Real Estate Operations--0.3%
LaSalle Partners, Inc. (b) ............ 28,300 1,034,719
------------
Retail--Mail Order & Direct--0.7%
Amazon.com, Inc. (b) .................. 40,000 2,440,000
------------
Steel--Producers--1.2%
Lone Star Technologies, Inc. (b) ...... 112,000 4,277,000
------------
Telecommunications--Equipment--1.5%
MRV Communications, Inc. (b) ......... 75,000 2,193,750
Tekelec (b) ........................... 75,000 3,140,625
------------
5,334,375
------------
Telecommunications--Services--2.7%
Boston Communications Group, Inc. (b) 270,000 3,982,500
Premiere Technologies, Inc. (b) ...... 170,000 5,780,000
------------
9,762,500
------------
Transportation--Services--0.5%
NEXTLINK Communications, Inc.
Class A (b) ........................ 74,000 1,674,250
------------
Transportation--Truck--0.5%
Jevic Transportation, Inc. (b) ......... 99,000 1,757,250
------------
TOTAL COMMON STOCKS
(Identified cost $213,678,474)..................... 229,244,993
------------
FOREIGN COMMON STOCKS--5.4%
Computers--Software--1.2%
Check Point Software Technologies Ltd.
(Israel) (b) ........................ 17,200 733,150
Lernout & Hauspie Speech Products
NV (Belgium) (b) ..................... 27,400 1,328,900
Saville Systems Ireland PLC Sponsored
ADR (Ireland) (b) .................. 23,000 1,374,250
VocalTec Communications Ltd.
(Israel) (b) ........................ 33,600 898,800
------------
4,335,100
------------
Electric--Semiconductor Manufacturing--0.8%
Galileo Technology Ltd. (Israel) (b) ... 84,500 2,904,688
------------
Oil & Gas--Field Services--3.4%
Coflexip SA Sponsored ADR (France) ... 172,000 9,460,000
Fred Olsen Energy ASA Sponsored
ADR (Norway) (b) ..................... 110,000 2,975,500
------------
12,435,500
------------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $16,995,727) ..................... 19,675,288
------------
TOTAL LONG-TERM INVESTMENTS--68.0%
(Identified cost $230,674,201) .................. 248,920,281
------------
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- --------- ----------------
SHORT-TERM OBLIGATIONS--27.8%
Commercial Paper--24.4%
Procter & Gamble Co. 5.52%,
11/3/97 ........................ A-1+ $ 9,000 $ 8,997,240
Pitney Bowes Credit Corp.
5.53%, 11/4/97 ............... A-1+ 3,600 3,598,341
Pitney Bowes Credit Corp.
5.57%, 11/4/97 ............... A-1+ 5,000 4,997,679
Preferred Receivables Funding
Corp. 5.55%, 11/4/97 ......... A-1 5,525 5,522,445
Asset Securitization
Cooperative Corp. 5.60%,
11/5/97 ........................ A-1+ 3,600 3,597,760
AT&T Corp. 5.60%, 11/6/97 ...... A-1+ 10,000 9,992,222
Procter & Gamble Co. 5.58%,
11/7/97 ........................ A-1+ 3,560 3,556,689
SBC Communications, Inc.
5.62%, 11/7/97 ............... A-1+ 9,000 8,991,570
General Electric Capital Corp.
5.56%, 11/10/97 ............... A-1+ 6,765 6,765,000
Cargill, Inc. 5.55%, 11/12/97 .... A-1+ 4,570 4,562,250
Cargill, Inc. 5.55%, 11/13/97 .... A-1+ 2,365 2,360,625
International Lease Finance
Corp. 5.50%, 11/14/97 ......... A-1 890 888,232
Du Pont (E.I.) de Nemours &
Co. 5.55%, 11/17/97 ............ A-1+ 800 798,027
Private Export Funding Corp.
5.50%, 11/17/97 ............... A-1+ 5,000 4,987,778
General Re Corp. 5.50%,
11/18/97 ..................... A-1+ 8,035 8,014,131
Greenwich Funding Corp.
5.55%, 12/1/97 ............... A-1+ 4,135 4,115,876
Private Export Funding Corp.
5.51%, 12/2/97 ............... A-1+ 4,400 4,379,123
Enterprise Funding Corp.
5.65%, 1/26/98 ............... A-1+ 3,042 3,002,454
--------------
89,127,442
--------------
Federal Agency Securities--3.4%
FHLMC 5.43%, 11/7/97 ..................... 5,000 4,995,475
FNMA 5.50%, 11/7/97 ..................... 3,050 3,047,204
FHLMC 5.46%, 11/13/97 ..................... 4,520 4,511,774
--------------
12,554,453
--------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $101,680,382) ....................... 101,681,895
--------------
TOTAL INVESTMENTS--95.8%
(Identified cost $332,354,583) ....................... 350,602,176(a)
Cash and receivables, less liabilities--4.2% 15,249,336
--------------
NET ASSETS--100.0% ................................... $ 365,851,512
==============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $29,926,314 and gross
depreciation of $11,678,721 for income tax purposes. At October 31, 1997,
the aggregate cost of securities for federal income tax purposes was
$332,354,583.
(b) Non-income producing.
4 See Notes to Financial Statements
<PAGE>
Phoenix Small Cap Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
(Unaudited)
Assets
Investment securities at value
(Identified cost $332,354,583) $350,602,176
Cash 834
Receivables
Investment securities sold 18,360,531
Fund shares sold 1,020,532
Dividends and interest 64,095
------------
Total assets 370,048,168
------------
Liabilities
Payables
Investment securities purchased 3,167,309
Fund shares repurchased 454,835
Investment advisory fee 247,357
Distribution fee 181,873
Transfer agent fee 88,222
Financial agent fee 14,311
Trustees' fee 4,601
Accrued expenses 38,148
------------
Total liabilities 4,196,656
------------
Net Assets $365,851,512
============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $288,541,230
Undistributed net investment loss (1,678,606)
Accumulated net realized gain 60,741,295
Net unrealized appreciation 18,247,593
------------
Net Assets $365,851,512
============
Class A
Shares of beneficial interest outstanding, $0.0001
par value, unlimited authorization
(Net Assets $217,988,005) 10,881,977
Net asset value per share $20.03
Offering price per share
$20.03/(1-4.75%) $21.03
Class B
Shares of beneficial interest outstanding, $0.0001
par value, unlimited authorization
(Net Assets $147,863,507) 7,490,360
Net asset value and offering price per share $19.74
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1997
(Unaudited)
Investment Income
Interest $725,261
Dividends 269,485
------------
Total investment income 994,746
------------
Expenses
Investment advisory fee 1,234,915
Distribution fee--Class A 249,986
Distribution fee--Class B 646,610
Financial agent fee 75,610
Transfer agent 355,440
Registration 25,159
Printing 22,914
Custodian 19,424
Professional 16,650
Trustees 10,883
Miscellaneous 15,761
------------
Total expenses 2,673,352
------------
Net investment loss (1,678,606)
------------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 86,185,869
Net change in unrealized appreciation (depreciation)
on investments 20,250,119
------------
Net gain on investments 106,435,988
------------
Net increase in net assets resulting from
operations $104,757,382
============
See Notes to Financial Statements
5
<PAGE>
Phoenix Small Cap 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 (loss) $ (1,678,606) $ (1,471,814)
Net realized gain (loss) 86,185,869 (25,221,777)
Net change in unrealized appreciation (depreciation) 20,250,119 (27,980,129)
------------- --------------
Increase (decrease) in net assets resulting from operations 104,757,382 (54,673,720)
------------- --------------
From Distributions to Shareholders
Net realized gains--Class A -- (183,926)
Net realized gains--Class B -- (108,414)
In excess of accumulated net realized gains--Class A -- (141,528)
In excess of accumulated net realized gains--Class B -- (83,423)
------------- --------------
Decrease in net assets from distributions to shareholders -- (517,291)
------------- --------------
From Share Transactions
Class A
Proceeds from sales of shares (2,163,380 and 12,800,790 shares, respectively) 39,054,498 216,824,086
Net asset value of shares issued from reinvestment of distributions (0 and 18,203 -- 304,365
shares, respectively)
Cost of shares repurchased (2,253,942 and 7,723,733 shares, respectively) (40,525,567) (126,330,628)
------------- --------------
Total (1,471,069) 90,797,823
------------- --------------
Class B
Proceeds from sales of shares (1,230,141 and 5,355,420 shares, respectively) 22,689,854 90,761,953
Net asset value of shares issued from reinvestment of distributions (0 and 9,754 shares, -- 161,819
respectively)
Cost of shares repurchased (723,856 and 1,088,642 shares, respectively) (12,860,282) (17,334,625)
------------- --------------
Total 9,829,572 73,589,147
------------- --------------
Increase in net assets from share transactions 8,358,503 164,386,970
------------- --------------
Net increase in net assets 113,115,885 109,195,959
Net Assets
Beginning of period 252,735,627 143,539,668
------------- --------------
End of period (including undistributed net investment income (loss) of ($1,678,606)
and $0, respectively) $ 365,851,512 $ 252,735,627
============= ==============
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Phoenix Small Cap Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-------------------------------------------------------------
Six Months
Ended From Inception
10/31/97 Year Ended 10/16/95 to
(Unaudited) 4/30/97 4/30/96
------------------- ----------------- -----------------------
<S> <C> <C> <C>
Net asset value, beginning of period $14.13 $16.74 $10.00
Income from investment operations(7)
Net investment income (loss) (0.07)(5) (0.05)(5) (0.04)(1)(5)
Net realized and unrealized gain (loss) 5.97 (2.53) 6.79
------- -------- -------
Total from investment operations 5.90 (2.58) 6.75
------- -------- -------
Less distributions
Dividends from net investment income -- -- --
Dividends from net realized gains -- (0.02) --
In excess of net investment income -- -- (0.01)
In excess of accumulated net realized gains -- (0.01) --
------- -------- -------
Total distributions -- (0.03) (0.01)
------- -------- -------
Change in net asset value 5.90 (2.61) 6.74
------- -------- -------
Net asset value, end of period $20.03 $14.13 $16.74
======= ======== =======
Total return(2) 41.76%(4) (15.43)% 67.48%(4)
Ratios/supplemental data:
Net assets, end of period (thousands) $217,988 $155,089 $98,372
Ratio to average net assets of:
Expenses 1.33%(3) 1.37% 1.50%(3)
Net investment income (loss) (0.72)%(3) (0.28)% (0.53)%(3)
Portfolio turnover 266%(4) 325% 103%(4)
Average commission rate paid(6) $0.0542 $0.0540 $0.0657
</TABLE>
<TABLE>
<CAPTION>
Class B
-------------------------------------------------------------
Six Months
Ended From Inception
10/31/97 Year Ended 10/16/95 to
(Unaudited) 4/30/97 4/30/96
------------------- ----------------- --------------------
<S> <C> <C> <C>
Net asset value, beginning of period $13.98 $16.68 $10.00
Income from investment operations(7)
Net investment income (loss) (0.13)(5) (0.17)(5) (0.09)(1)(5)
Net realized and unrealized gain (loss) 5.89 (2.50) 6.77
---------- --------- -------
Total from investment operations 5.76 (2.67) 6.68
---------- --------- -------
Less distributions
Dividends from net investment income -- -- --
Dividends from net realized gains -- (0.02) --
In excess of net investment income -- -- --
In excess of accumulated net realized gains -- (0.01) --
---------- --------- -------
Total distributions -- (0.03) --
---------- --------- -------
Change in net asset value 5.76 (2.70) 6.68
---------- --------- -------
Net asset value, end of period $19.74 $13.98 $16.68
========== ========= =======
Total return(2) 41.20%(4) (16.03)% 66.80%(4)
Ratios/supplemental data:
Net assets, end of period (thousands) $147,864 $97,647 $45,168
Ratio to average net assets of:
Expenses 2.08%(3) 2.12% 2.26%(3)
Net investment income (loss) (1.48)%(3) (1.03)% (1.44)%(3)
Portfolio turnover 266%(4) 325% 103%(4)
Average commission rate paid(6) $0.0542 $0.0540 $0.0657
</TABLE>
(1) Includes reimbursement of operating expenses by investment adviser of $0.02
and $0.02, respectively.
(2) Maximum sales charge is not reflected in total return calculation.
(3) Annualized
(4) Not annualized
(5) Computed using average shares outstanding.
(6) 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.
(7) Distributions are made in accordance with the prospectus; however, class
level per share income from investment operations may vary from
anticipated results depending on the time of share purchases and
redemptions.
See Notes to Financial Statements
7
<PAGE>
PHOENIX STRATEGIC THEME FUND
INVESTOR PROFILE
Phoenix Strategic Theme Fund is designed for investors seeking long-term
capital appreciation.
INVESTMENT ADVISER'S REPORT
Phoenix Strategic Theme Fund outperformed the S&P 500 Index for the six
months ended October 31, 1997. The Fund's Class A shares returned 23.82% and
the Class B shares returned 23.34% for the six month period. During the same
period, the S&P 500 Index returned 15.16%.* In addition, the Phoenix Strategic
Theme Fund has exceeded 67% of a peer universe of 161 funds since inception
with an annualized total return of 21.86%. All performance figures assume
reinvestment of dividends and exclude the effect of sales charges.
Over the past six months, small- and mid-cap stocks staged a strong
recovery, outperforming large-caps. However, this outperformance came to a halt
during the October market correction, which was spurred by the Southeast Asian
currency crisis. The Fund has focused on the mid-cap arena, which offers more
opportunities for thematic investing, higher earnings growth rates and more
attractive valuations compared with large-cap stocks. Moreover, small- and
mid-cap stocks have less international earnings exposure than large-cap
multinationals, which should help insulate them against international earnings
disappointments. Finally, our cash levels helped protect the Fund during the
October selloff.
The Fund's strong performance was generated by both new and existing
themes. Energy Technology is one of our highest conviction themes, capitalizing
on rising global energy demand. This theme represents companies that provide
productivity-enhancing solutions to the world's exploration and production
companies. Internet Commerce Ignition, a new theme, represents companies
benefiting from the explosive growth of the number of people and businesses
utilizing the Internet for retailing, advertising and business-to-business
commerce. Our Deregulating Financial Services theme represents banks, insurance
companies and brokerage houses, which we believe will continue to witness
above-average earnings growth and industry consolidation. The 21st Century
Medicine theme continues to be attractive due to remarkable advances in
gene-mapping, biotechnology and non-invasive surgical techniques that are
changing the way medicine is practiced and enhancing the quality of life.
OUTLOOK
Moving forward, we believe that the Fund is well-positioned for the
current investment climate, which is characterized by worries of the "Asian
contagion." Our driving investment themes coupled with our defensive use of
cash should serve us well in this climate. As of October 31, the Fund's asset
allocation mix was 73% equities and 27% cash equivalents.
*The S&P 500 Index is an unmanaged, commonly used index of total return
performance of the stock market.
8
<PAGE>
Phoenix Strategic Theme Fund
- --------------------------------------------------------------------------------
[PIE CHART]
Short-Terms & Equivalents 27.1%
Energy Technology 18.9%
21st Century Medicine 12.3%
Deregulating Financial Services 11.8%
Special Situations 6.6%
Internet Commerce Ignition 5.5%
Kardiac Kids 4.0%
Genomic Revolution 3.7%
Next Destination Data 3.6%
Flying First Class 3.3%
Deep Water Dynamics 3.2%
[/PIE CHART]
9
<PAGE>
Phoenix Strategic Theme Fund
- --------------------------------------------------------------------------------
INVESTMENTS AT OCTOBER 31, 1997
(Unaudited)
SHARES VALUE
--------- -------------
COMMON STOCKS--72.4%
Banks--Midwest--1.6%
U.S. Bancorp .............................. 25,500 $ 2,593,031
-----------
Banks--Northeast--1.2%
Albank Financial Corp. ..................... 40,000 1,850,000
-----------
Banks--Southeast--2.8%
First American Corp. ........................ 57,000 2,707,500
Union Planters Corp. ........................ 29,000 1,720,063
-----------
4,427,563
-----------
Commercial--Leasing Companies--1.8%
Avis Rent A Car, Inc. (b) .................. 100,300 2,751,981
-----------
Commercial Services--Advertising--0.4%
TMP Worldwide, Inc. (b) ..................... 32,000 680,000
-----------
Commercial Services--Miscellaneous--1.1%
Boron, LePore & Associates, Inc. (b) ...... 72,000 1,755,000
-----------
Commercial Services--Security/Safety--0.5%
Armor Holdings, Inc. (b) .................. 75,000 825,000
-----------
Computer--Services--4.5%
America Online, Inc. (b) .................. 21,000 1,617,000
Excite, Inc. (b) ........................... 83,000 2,069,812
Harbinger Corp. (b) ........................ 9,800 291,550
Network Solutions, Inc. (b) ............... 85,000 1,615,000
Yahoo!, Inc. (b) ........................... 34,000 1,490,686
-----------
7,084,048
-----------
Computer--Software--0.1%
Edwards (J.D.) & Co. (b) .................. 5,000 170,000
-----------
Electric--Semiconductor Equipment--1.1%
Uniphase Corp. (b) ........................ 25,000 1,678,125
-----------
Finance--Investment Bankers--1.0%
Charles Schwab Corp. ........................ 45,000 1,535,625
-----------
Finance--Investment Management--1.0%
Franklin Resources, Inc. .................. 17,000 1,527,875
-----------
Finance--Savings & Loans--1.3%
Ocwen Financial Corp. (b) .................. 38,000 2,087,625
-----------
Insurance--Property/Casualty/Title--2.9%
Ace, Ltd. ................................. 17,000 1,579,937
Penn-America Group, Inc. .................. 75,000 1,382,813
Progressive Corp. ........................... 15,000 1,563,750
-----------
4,526,500
-----------
Leisure--Services--0.3%
N2K, Inc. (b) .............................. 18,000 473,625
-----------
SHARES VALUE
--------- -------------
Medical--Biomed/Genetics--5.8%
Centocor, Inc. (b) ........................ 72,000 $ 3,168,000
Incyte Pharmaceuticals, Inc. (b) ............ 44,000 3,542,000
Transkaryotis Therapies, Inc. (b) ......... 68,000 2,329,000
-----------
9,039,000
-----------
Medical--Drug/Diversified--1.6%
Warner-Lambert Co. ........................ 18,000 2,577,375
-----------
Medical--Ethical--5.2%
Lilly (Eli) & Co. ........................... 51,000 3,410,625
Pfizer, Inc. .............................. 46,000 3,254,500
Schering-Plough Corp. ..................... 27,000 1,513,687
-----------
8,178,812
-----------
Medical--Instruments--2.0%
Arterial Vascular Engineering, Inc. (b) ..... 58,000 3,081,250
-----------
Medical--Products--4.0%
Guidant Corp. .............................. 55,000 3,162,500
Sepracor, Inc. (b) ........................ 87,500 3,139,063
-----------
6,301,563
-----------
Medical/Dental--Supplies--2.3%
Safeskin Corp. (b) ........................ 81,000 3,675,375
-----------
Oil & Gas--Drilling--9.6%
Diamond Offshore Drilling, Inc. ............ 50,000 3,112,500
Marine Drilling Companies, Inc. (b) ......... 105,000 3,110,625
Precision Drilling Corp. (b) ............... 150,000 4,612,500
Santa Fe International Corp. (b) ............ 85,000 4,180,937
-----------
15,016,562
-----------
Oil & Gas--Field Services--4.9%
Halliburton Co. ........................... 56,000 3,339,000
Schlumberger Ltd. ........................... 44,000 3,850,000
Transcoastal Marine Services, Inc. (b) ...... 19,000 472,625
-----------
7,661,625
-----------
Oil & Gas--Machinery/Equipment--5.8%
Cooper Cameron Corp. (b) .................. 11,000 794,750
EVI, Inc. (b) .............................. 50,000 3,209,375
Smith International, Inc. (b) ............... 22,000 1,677,500
Varco International, Inc. (b) ............... 57,000 3,473,438
-----------
9,155,063
-----------
Oil & Gas--U.S. Exploration & Production--0.4%
Cross Timbers Oil Co. ..................... 21,900 584,456
-----------
Real Estate Operations--0.4%
Tower Realty Trust, Inc. (b) ............... 26,000 656,500
-----------
Retail--Mail Order & Direct--0.3%
ONSALE, Inc. (b) ........................... 19,200 441,600
-----------
10 See Notes to Financial Statements
<PAGE>
Phoenix Strategic Theme Fund
- --------------------------------------------------------------------------------
SHARES VALUE
--------- -------------
Telecommunications--Equipment--2.0%
Ciena Corp. (b) ..................... 58,000 $ 3,190,000
------------
Telecommunications--Services--0.5%
ITC Deltacom, Inc. (b) ............... 38,000 731,500
------------
Transportation--Airline--3.3%
Southwest Airlines Co. ............... 46,000 1,500,750
UAL Corp. (b) ........................ 25,000 2,190,625
U.S. Air Group, Inc. (b) ............ 32,000 1,500,000
------------
5,191,375
------------
Transportation--Equipment Manufacturing--1.2%
Halter Marine Group, Inc. (b) ...... 37,000 1,935,563
------------
Transportation--Services--1.5%
C.H. Robinson Worldwide, Inc. (b) ... 106,000 2,332,000
------------
TOTAL COMMON STOCKS
(Identified cost $106,316,494).................. 113,715,617
------------
FOREIGN COMMON STOCKS--0.5%
Oil & Gas--Field Services--0.5%
Petroleum Geo-Services ADR
(Norway) (b) ..................... 11,000 761,750
------------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $813,054) ..................... 761,750
------------
TOTAL LONG-TERM INVESTMENTS--72.9%
(Identified cost $107,129,548) ............... 114,477,367
------------
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- -------- --------------------
SHORT-TERM OBLIGATIONS--21.1%
Commercial Paper--19.7%
Cargill, Inc. 5.65%, 11/3/97 ... A-1+ $1,110 $ 1,109,652
Preferred Receivables Funding
Corp. 5.57%, 11/3/97 ......... A-1 2,870 2,869,112
Pitney Bowes Credit Corp.
5.53%, 11/4/97 ............... A-1+ 5,705 5,702,371
Schering Corp. 5.52%,
11/4/97 ........................ A-1+ 930 929,572
Sara Lee Corp. 5.51%, 11/5/97 .... A-1+ 3,500 3,497,857
Schering Corp. 5.55%,
11/5/97 ........................ A-1+ 2,840 2,838,249
Wisconsin Electric Power Co.
5.60%, 11/6/97 ............... A-1+ 460 459,642
General Electric Capital Corp.
5.60%, 11/7/97 ............... A-1+ 175 174,837
Kimberly-Clark Corp. 5.55%,
11/7/97 ........................ A-1+ 4,390 4,385,939
General Re Corp. 5.50%,
11/10/97 ..................... A-1+ 3,510 3,505,174
Cargill, Inc. 5.55%, 11/12/97 .... A-1+ 2,500 2,495,760
Private Export Funding Corp.
5.50%, 11/18/97 ............... A-1+ 3,000 2,992,208
--------------
30,960,373
--------------
Federal Agency Securities--1.4%
FHLMC 5.48%, 11/12/97 ..................... 2,165 2,161,375
--------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $33,121,748) ...................... 33,121,748
--------------
TOTAL INVESTMENTS--94.0%
(Identified cost $140,251,296) ...................... 147,599,115(a)
Cash and receivables, less liabilities--6.0% 9,399,511
--------------
NET ASSETS--100% ..................................... $ 156,998,626
==============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $10,444,322 and gross
depreciation of $3,096,503 for income tax purposes. At October 31, 1997,
the aggregate cost of securities for federal income tax purposes was
$140,251,296.
(b) Non-income producing.
See Notes to Financial Statements
11
<PAGE>
Phoenix Strategic Theme Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
(Unaudited)
Assets
Investment securities at value
(Identified cost $140,251,296) $147,599,115
Cash 12,277
Receivables
Investment securities sold 9,822,055
Fund shares sold 282,456
Dividends and interest 15,100
------------
Total assets 157,731,003
------------
Liabilities
Payables
Investment securities purchased 342,000
Fund shares repurchased 156,365
Investment advisory fee 105,717
Distribution fee 76,889
Transfer agent fee 24,226
Financial agent fee 7,507
Trustees' fee 4,613
Accrued expenses 15,060
------------
Total liabilities 732,377
------------
Net Assets $156,998,626
============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $126,073,425
Undistributed net investment loss (477,436)
Accumulated net realized gain 24,054,818
Net unrealized appreciation 7,347,819
------------
Net Assets $156,998,626
============
Class A
Shares of beneficial interest outstanding, $0.0001
par value, unlimited authorization
(Net Assets $95,150,077) 6,402,355
Net asset value per share $14.86
Offering price per share
$14.86/(1-4.75%) $15.60
Class B
Shares of beneficial interest outstanding, $0.0001
par value, unlimited authorization
(Net Assets $61,848,549) 4,208,861
Net asset value and offering price per share $14.69
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1997
(Unaudited)
Investment Income
Interest $ 435,220
Dividends 298,000
-----------
Total investment income 733,220
-----------
Expenses
Investment advisory fee 566,559
Distribution fee--Class A 114,495
Distribution fee--Class B 297,431
Financial agent fee 41,307
Transfer agent 111,534
Registration 23,092
Printing 14,980
Professional 12,062
Custodian 11,847
Trustees 10,883
Miscellaneous 4,424
-----------
Total expenses 1,208,614
-----------
Net investment loss (475,394)
-----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 25,492,272
Net realized loss on written options (375,904)
Net change in unrealized appreciation (depreciation)
on investments 5,128,151
-----------
Net gain on investments 30,244,519
-----------
Net increase in net assets resulting from
operations $29,769,125
===========
12 See Notes to Financial Statements
<PAGE>
Phoenix Strategic Theme Fund
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
October 31, 1997 Year Ended
(Unaudited) April 30, 1997
------------------ ---------------
From Operations
<S> <C> <C>
Net investment income (loss) $ (475,394) $ 236,284
Net realized gain (loss) 25,116,368 (564,493)
Net change in unrealized appreciation (depreciation) 5,128,151 (4,414,137)
------------ ------------
Increase (decrease) in net assets resulting from operations 29,769,125 (4,742,346)
------------ ------------
From Distributions to Shareholders
Net investment income--Class A (201,802) (58,137)
Net investment income--Class B -- --
Net realized gains--Class A -- (75,556)
Net realized gains--Class B -- (45,199)
------------ ------------
Decrease in net assets from distributions to shareholders (201,802) (178,892)
------------ ------------
From Share Transactions
Class A
Proceeds from sales of shares (598,740 and 5,618,602 shares, respectively) 8,717,886 70,489,900
Net asset value of shares issued from reinvestment of distributions (14,163 and 9,860 190,634 124,426
shares, respectively)
Cost of shares repurchased (678,843 and 1,859,542 shares, respectively) (9,544,163) (23,252,060)
------------ ------------
Total (635,643) 47,362,266
------------ ------------
Class B
Proceeds from sales of shares (348,849 and 3,501,688 shares, respectively) 4,979,754 43,480,458
Net asset value of shares issued from reinvestment of distributions (0 and 3,161 shares, -- 39,607
respectively)
Cost of shares repurchased (323,608 and 287,858 shares, respectively) (4,582,698) (3,604,353)
------------ ------------
Total 397,056 39,915,712
------------ ------------
Increase (decrease) in net assets from share transactions (238,587) 87,277,978
------------ ------------
Net increase in net assets 29,328,736 82,356,740
Net Assets
Beginning of period 127,669,890 45,313,150
------------ ------------
End of period (including undistributed net investment income (loss) of ($477,436) and
$199,760, respectively) $156,998,626 $127,669,890
============ ============
</TABLE>
See Notes to Financial Statements
13
<PAGE>
Phoenix Strategic Theme Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
---------------------------------------------------------
Six Months
Ended From Inception
10/31/97 Year Ended 10/16/95 to
(Unaudited) 4/30/97 4/30/96
------------------- --------------- ---------------------
<S> <C> <C> <C>
Net asset value, beginning of period $12.03 $12.37 $10.00
Income from investment operations(7)
Net investment income (loss) (0.02) 0.06(5) 0.00(1)(5)
Net realized and unrealized gain (loss) 2.88 (0.38) 2.39
------ --------
Total from investment operations 2.86 (0.32) 2.39
------ -------- ------------
Less distributions
Dividends from net investment income (0.03) (0.01) --
In excess of accumulated net realized gains -- (0.01) --
Tax return of capital -- -- (0.02)
------ ---------- ------------
Total distributions (0.03) (0.02) (0.02)
------ ---------- ------------
Change in net asset value 2.83 (0.34) 2.37
------- --------- ------------
Net asset value, end of period $14.86 $12.03 $12.37
======= ========= ============
Total return(2) 23.82%(4) (2.57)% 23.89%(4)
Ratios/supplemental data:
Net assets, end of period (thousands) $95,150 $77,827 $33,393
Ratio to average net assets of:
Expenses 1.30%(3) 1.40% 1.40 %(3)
Net investment income (loss) (0.33)%(3) 0.49% (0.09)%(3)
Portfolio turnover 337%(4) 532% 175%(4)
Average commission rate paid(6) $0.0582 $0.0590 $0.0663
</TABLE>
<TABLE>
<CAPTION>
Class B
-------------------------------------------------------------
Six Months
Ended From Inception
10/31/97 Year Ended 10/16/95 to
(Unaudited) 4/30/97 4/30/96
------------------- ----------------- -----------------------
<S> <C> <C> <C>
Net asset value, beginning of period $11.91 $12.33 $10.00
Income from investment operations(7)
Net investment income (loss) (0.08) (0.03)(5) (0.06)(1)(5)
Net realized and unrealized gain (loss) 2.86 (0.38) 2.40
------- ------- -------
Total from investment operations 2.78 (0.41) 2.34
------- ------- -------
Less distributions
Dividends from net investment income -- -- --
In excess of accumulated net realized gains -- (0.01) --
Tax return of capital -- -- (0.01)
------- ------- -------
Total distributions -- (0.01) (0.01)
------- ------- -------
Change in net asset value 2.78 (0.42) 2.33
------- ------- -------
Net asset value, end of period $14.69 $11.91 $12.33
======= ======= =======
Total return(2) 23.34%(4) (3.31)% 23.41%(4)
Ratios/supplemental data:
Net assets, end of period (thousands) $61,849 $49,843 $11,920
Ratio to average net assets of:
Expenses 2.05%(3) 2.15% 2.16%(3)
Net investment income (loss) (1.08)%(3) (0.23)% (1.06)%(3)
Portfolio turnover 337%(4) 532% 175%(4)
Average commission rate paid(6) $0.0582 $0.0590 $0.0663
</TABLE>
(1) Includes reimbursement of operating expenses by investment adviser of $0.04
and $0.04, respectively.
(2) Maximum sales charge is not reflected in total return calculation.
(3) Annualized
(4) Not annualized
(5) Computed using average shares outstanding.
(6) 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.
(7) Distributions are made in accordance with the prospectus; however, class
level per share income from investment operations may vary from
anticipated results depending on the timing of share purchases and
redemptions.
14 See Notes to Financial Statements
<PAGE>
PHOENIX EQUITY OPPORTUNITIES FUND
INVESTOR PROFILE
Phoenix Equity Opportunities Fund is designed for investors seeking
long-term capital appreciation.
INVESTMENT ADVISER'S REPORT
Phoenix Equity Opportunities Fund posted double-digit returns over this
latest reporting cycle. For the six months ended October 31, 1997, Class A
shares returned 24.82% and Class B shares returned 24.37% and the Russell 2000
Growth Index returned 30.70%.* All performance figures assume reinvestment of
dividends and exclude the effect of sales charges.
Over the past six months, small- and mid-cap stocks staged a strong
recovery, outperforming large-caps. However, this outperformance came
to a halt during the October market correction, which was spurred by the
Southeast Asian currency crisis. The Fund has focused on the mid-cap sector,
which offers more opportunities for thematic investing, higher earnings growth
rates and more attractive valuations compared with large-cap stocks. Moreover,
mid-cap stocks have less international exposure than large multinationals,
which should insulate them against international earnings disappointments.
Performance was helped by holdings related to our Energy Technology
theme--capitalizing on rising global energy demand. This theme represents
companies that provide productivity-enhancing solutions to the world's
exploration and production companies. Internet Commerce Ignition, a new theme,
represents companies benefiting from the explosive growth of the number of
people and businesses utilizing the Internet for retailing, advertising and
business-to-business commerce. Performance was held back slightly by our
technology and consumer cyclical holdings.
OUTLOOK
We believe the Fund is well-positioned for the current investment climate,
which is characterized by worries of the "Asian contagion." Our long-term
outlook remains constructive. Although valuation levels have risen for most of
the market, the economy continues to grow, inflation remains benign and the
outlook for overall corporate earnings is still positive. Our driving investment
themes should serve us well in this investment climate. As of October 31, the
Fund's asset allocation mix was 94% equities and 6% cash equivalents.
*The Russell 2000 Growth Index is an unmanaged, commonly used measure of total
return performance for small-cap companies with above-average growth
orientation.
15
<PAGE>
Phoenix Equity Opportunities Fund
- --------------------------------------------------------------------------------
INVESTMENTS AT OCTOBER 31, 1997
(Unaudited)
SHARES VALUE
--------- -------------
COMMON STOCKS--91.5%
Airlines--3.8%
AMR Corp. (b) .............................. 30,000 $ 3,493,125
Southwest Airlines Co. ..................... 80,000 2,610,000
U.S. Air Group, Inc. (b) .................. 25,000 1,171,875
-----------
7,275,000
-----------
Banks (Major Regional)--2.6%
Southtrust Corp. ........................... 40,000 1,920,000
Zions Bancorporation ..................... 80,000 3,110,000
-----------
5,030,000
-----------
Biotechnology--4.3%
BioChem Pharma, Inc. (b) .................. 80,000 2,005,000
Centocor, Inc. (b) ........................ 40,000 1,760,000
Immunex Corp. (b) ........................ 70,000 4,480,000
-----------
8,245,000
-----------
Broadcasting (Television, Radio & Cable)--2.4%
Clear Channels Communications, Inc. (b) ... 55,000 3,630,000
Heftel Broadcasting Corp. Class A (b) ...... 13,500 897,750
-----------
4,527,750
-----------
Communications Equipment--7.3%
Antec Corp. (b) ........................... 60,900 959,175
Ciena Corp. (b) ........................... 10,000 550,000
Intermedia Communications, Inc. (b) ...... 60,000 2,722,500
Lucent Technologies, Inc. .................. 40,000 3,297,500
Newbridge Networks Corp. (b) ............... 30,000 1,590,000
Nextel Communications, Inc. Class A (b) .... 80,000 2,100,000
QUALCOMM, Inc. (b) ........................ 50,000 2,818,750
-----------
14,037,925
-----------
Computers (Hardware)--0.4%
Compaq Computer Corp. (b) .................. 12,500 796,875
-----------
Computers (Networking)--1.6%
Bay Networks, Inc. (b) ..................... 100,000 3,162,500
-----------
Computers (Software & Services)--11.8%
America Online, Inc. (b) .................. 40,000 3,080,000
Citrix Systems, Inc. (b) .................. 53,700 3,943,594
Concord Communications, Inc. (b) ......... 35,200 624,800
Excite, Inc. (b) ........................... 40,000 997,500
Genesys Telecommunications
Laboratories, Inc. (b) .................. 40,000 1,280,000
Intuit, Inc. (b) ........................... 40,000 1,305,000
Microsoft Corp. (b) ........................ 30,000 3,900,000
Pinnacle Systems, Inc. (b) ............... 60,000 1,620,000
RWD Technologies, Inc. (b) ............... 20,900 470,250
Security Dynamics Technologies, Inc. (b) ... 40,000 1,355,000
Veritas Software Corp. (b) ............... 100,000 4,162,500
-----------
22,738,644
-----------
Consumer Finance--1.9%
Providian Financial Corp. .................. 100,000 3,700,000
-----------
SHARES VALUE
--------- -------------
Electrical Equipment--1.1%
Westinghouse Electric Corp. ............... 80,000 $ 2,115,000
-----------
Electronics (Instrumentation)--0.5%
Uniphase Corp. (b) ........................ 15,000 1,006,875
-----------
Financial (Diversified)--2.2%
Amresco, Inc. (b) ........................ 80,000 2,510,000
Paine Webber Group, Inc. .................. 40,000 1,767,500
-----------
4,277,500
-----------
Footwear--0.8%
Stage Stores, Inc. (b) ..................... 40,000 1,460,000
-----------
Health Care (Diversified)--2.2%
Pharmacopeia, Inc. (b) ..................... 80,000 1,410,000
Warner-Lambert Co. ........................ 20,000 2,863,750
-----------
4,273,750
-----------
Health Care (Drugs--Major Pharmaceuticals)--6.6%
Agouron Pharmaceuticals, Inc. (b) ......... 20,000 912,500
Coulter Pharmaceutical, Inc. (b) ......... 100,000 1,437,500
Dura Pharmaceuticals, Inc. (b) ............ 75,000 3,628,125
Guilford Pharmaceuticals, Inc. (b) ......... 40,000 975,000
Medicis Pharmaceuticals Corp.
Class A (b) .............................. 30,000 1,443,750
Pfizer, Inc. .............................. 60,000 4,245,000
-----------
12,641,875
-----------
Health Care (Hospital Management)--1.4%
HBO & Co. ................................. 62,200 2,705,700
-----------
Health Care (Medical Products & Supplies)--4.8%
Arterial Vascular Engineering, Inc. (b) ... 40,000 2,125,000
Guidant Corp. .............................. 90,000 5,175,000
IDEC Pharmaceuticals Corp. (b) ............ 50,000 1,906,250
-----------
9,206,250
-----------
Household Furn. & Appliances--4.0%
Pier 1 Imports, Inc. ..................... 170,000 3,102,500
Sunbeam Corp., Inc. ........................ 100,000 4,531,250
-----------
7,633,750
-----------
Insurance (Multi-Line)--0.2%
PAULA Financial (b) ........................ 13,000 328,250
-----------
Investment Banking/Brokerage--1.0%
Merrill Lynch & Co., Inc. .................. 30,000 2,028,750
-----------
Lodging--Hotels--1.7%
CKE Restaurants, Inc. ..................... 80,000 3,195,000
-----------
Metals Mining--0.3%
NS Group, Inc. (b) ........................ 25,000 668,750
-----------
Oil (Domestic Integrated)--1.3%
Brown (Tom), Inc. (b) ..................... 100,000 2,475,000
-----------
16 See Notes to Financial Statements
<PAGE>
Phoenix Equity Opportunities Fund
- --------------------------------------------------------------------------------
SHARES VALUE
--------- -------------
Oil (Drilling & Equipment)--14.5%
BJ Services Co. (b) .................. 55,000 $ 4,661,250
Camco International, Inc. ............ 40,000 2,890,000
Diamond Offshore Drilling, Inc. ...... 50,000 3,112,500
Falcon Drilling Company, Inc. (b) ... 80,000 2,910,000
Global Marine, Inc. (b) ............... 40,000 1,245,000
Nabors Industries, Inc. (b) ......... 125,000 5,140,625
Transocean Offshore, Inc. ............ 40,000 2,160,000
UTI Energy Corp. (b) .................. 80,000 3,570,000
Veritas DGC, Inc. (b) ............... 50,000 2,046,875
------------
27,736,250
------------
Oil & Gas (Exploration & Production)--1.4%
Santa Fe Energy Resources, Inc. (b) ... 200,000 2,612,500
------------
Publishing--1.7%
HSN, Inc. (b) ........................ 80,000 3,200,000
------------
Retail (General Merchandise)--1.2%
A.C. Moore Arts & Crafts, Inc. (b) ... 10,000 151,875
Abercrombie & Fitch Co. Class A (b) ... 80,000 2,080,000
------------
2,231,875
------------
Services (Commercial & Consumer)--1.0%
ABR Information Services, Inc. (b) ... 80,000 1,880,000
------------
Telecommunications (Cellular/Wireless)--2.6%
AirTouch Communications, Inc. (b) ... 80,000 3,090,000
Qwest Communications International,
Inc. (b) ........................... 30,000 1,852,500
------------
4,942,500
------------
Telecommunications (Long Distance)--1.2%
Star Telecommunication, Inc. (b) ...... 100,000 2,312,500
------------
Telephone--3.7%
ICG Communications, Inc. (b) ......... 110,000 2,530,000
Pacific Gateway Exchange, Inc. (b) ... 45,000 1,721,250
Teleport Communications Group, Inc.
Class A (b) ........................ 60,000 2,902,500
------------
7,153,750
------------
TOTAL COMMON STOCKS
(Identified cost $165,727,490) .................. 175,599,519
------------
SHARES VALUE
--------- -------------
FOREIGN COMMON STOCKS--2.9%
Communications Equipment--0.7%
RSL Communications, Ltd.
(Bermuda) (b) ..................... 60,000 $ 1,410,000
------------
Computers (Software & Services)--1.1%
Check Point Software Technologies Ltd.
(Israel) (b) ........................ 49,700 2,118,463
------------
Oil & Gas (Drilling & Equipment)--1.1%
Coflexip SA Sponsored ADR (France) ... 40,000 2,200,000
------------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $5,813,399) ..................... 5,728,463
------------
TOTAL LONG-TERM INVESTMENTS--94.4%
(Identified cost $171,540,889) .................. 181,327,982
------------
STANDARD PAR
& POOR'S VALUE
RATING (000)
---------- --------
SHORT-TERM OBLIGATIONS--5.4%
Commercial Paper--5.4%
Associates Corporation of
North America 5.73%,
11/3/97 ............... A-1+ $5,330 5,328,303
Preferred Receivables
Funding Corp. 5.625%,
11/5/97 ............... A-1 5,000 4,996,875
---------
10,325,178
----------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $10,325,178) ............... 10,325,178
----------
TOTAL INVESTMENTS--99.8%
(Identified cost $181,866,067) ............... 191,653,160(a)
Cash and receivables, less liabilities--0.2% .. 290,539
-----------
NET ASSETS--100.0% .............................. $ 191,943,699
==============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $17,758,946 and gross
depreciation of $7,971,853 for income tax purposes. At October 31, 1997,
the aggregate cost of securities for federal income tax purposes was
$181,866,067.
(b) Non-income producing.
See Notes to Financial Statements 17
<PAGE>
Phoenix Equity Opportunities Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
(Unaudited)
Assets
Investment securities at value
(Identified cost $181,866,067) $191,653,160
Cash 2,849
Receivables
Investment securities sold 710,113
Fund shares sold 26,166
Dividends and interest 8,500
------------
Total assets 192,400,788
------------
Liabilities
Payables
Fund shares repurchased 165,503
Investment advisory fee 121,857
Transfer agent fee 48,115
Distribution fee 44,798
Financial agent fee 8,832
Trustees' fee 5,215
Accrued expenses 62,769
------------
Total liabilities 457,089
------------
Net Assets $191,943,699
============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $147,547,586
Undistributed net investment loss (766,268)
Accumulated net realized gain 35,375,288
Net unrealized appreciation 9,787,093
------------
Net Assets $191,943,699
============
Class A
Shares of beneficial interest outstanding, $0.0001
par value, unlimited authorization
(Net Assets $190,083,339) 22,109,673
Net asset value per share $8.60
Offering price per share
$8.60/(1-4.75%) $9.03
Class B
Shares of beneficial interest outstanding, $0.0001
par value, unlimited authorization
(Net Assets $1,860,360) 221,075
Net asset value and offering price per share $8.42
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1997
(Unaudited)
Investment Income
Dividends $ 286,523
Interest 126,908
-----------
Total investment income 413,431
-----------
Expenses
Investment advisory fee 672,453
Distribution fee--Class A 237,784
Distribution fee--Class B 9,513
Financial agent fee 49,516
Transfer agent 128,277
Professional 24,576
Registration 18,387
Custodian 13,962
Trustees 10,883
Printing 9,138
Miscellaneous 5,210
-----------
Total expenses 1,179,699
-----------
Net investment loss (766,268)
-----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 37,118,431
Net change in unrealized appreciation (depreciation)
on investments 3,953,895
-----------
Net gain on investments 41,072,326
-----------
Net increase in net assets resulting from
operations $40,306,058
===========
18 See Notes to Financial Statements
<PAGE>
Phoenix Equity Opportunities 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 (loss) $ (766,268) $ (795,274)
Net realized gain 37,118,431 10,737,465
Net change in unrealized appreciation (depreciation) 3,953,895 (33,047,467)
------------- ------------
Increase (decrease) in net assets resulting from operations 40,306,058 (23,105,276)
------------- ------------
From Distributions to Shareholders
Net realized gains--Class A -- (21,357,244)
Net realized gains--Class B -- (197,785)
In excess of accumulated net realized gains--Class A -- (1,175,456)
In excess of accumulated net realized gains--Class B -- (10,885)
------------- ------------
Decrease in net assets from distributions to shareholders -- (22,741,370)
------------- ------------
From Share Transactions
Class A
Proceeds from sales of shares (418,493 and 1,544,352 shares, respectively) 3,279,841 13,235,186
Net asset value of shares issued from reinvestment of distributions (0 and 2,020,340
shares, respectively) -- 16,243,531
Cost of shares repurchased (2,021,990 and 4,096,555 shares, respectively) (16,504,274) (34,291,172)
------------- ------------
Total (13,224,433) (4,812,455)
------------- ------------
Class B
Proceeds from sales of shares (20,041 and 115,267 shares, respectively) 155,245 965,240
Net asset value of shares issued from reinvestment of distributions (0 and 24,702
shares, respectively) -- 195,636
Cost of shares repurchased (45,076 and 48,133 shares, respectively) (354,996) (387,617)
------------- ------------
Total (199,751) 773,259
------------- ------------
Decrease in net assets from share transactions (13,424,184) (4,039,196)
------------- ------------
Net increase (decrease) in net assets 26,881,874 (49,885,842)
Net Assets
Beginning of period 165,061,825 214,947,667
------------- ------------
End of period (including undistributed net investment income (loss) of ($776,268) and $0,
respectively) $ 191,943,699 $165,061,825
============= ============
</TABLE>
See Notes to Financial Statements
19
<PAGE>
Phoenix Equity Opportunities Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-------------------------
Six Months
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 $6.89 $8.81 $7.40 $7.31 $9.64 $8.59
Income from investment operations
Net investment income (loss) (0.03) (0.03)(4) (0.04)(4) 0.04 0.05 0.06
Net realized and unrealized gain (loss) 1.74 (0.90) 2.34 0.58 0.57 1.34
----- ----- ----- ----- ----- -----
Total from investment operations 1.71 (0.93) 2.30 0.62 0.62 1.40
----- ----- ----- ----- ----- -----
Less distributions
Dividends from net investment income -- -- -- (0.05) (0.05) (0.06)
Dividends from net realized gains -- (0.94) (0.89) (0.48) (2.90) (0.29)
In excess of accumulated net realized gains -- (0.05) -- -- -- --
----- ----- ----- ----- ----- -----
Total distributions -- (0.99) (0.89) (0.53) (2.95) (0.35)
----- ----- ----- ----- ----- -----
Change in net asset value 1.71 (1.92) 1.41 0.09 (2.33) 1.05
----- ----- ----- ----- ----- -----
Net asset value, end of period $8.60 $6.89 $8.81 $7.40 $7.31 $9.64
===== ===== ===== ===== ===== =====
Total return(1) 24.82%(3) (12.19)% 32.86% 9.16% 4.99% 16.50%
Ratios/supplemental data:
Net assets, end of period (thousands) $190,083 $163,396 $213,600 $179,666 $186,037 $215,570
Ratio to average net assets of:
Expenses 1.22%(2) 1.23% 1.25% 1.32% 1.26% 1.35%
Net investment income (loss) (0.79)%(2) (0.39)% (0.53)% 0.60% 0.57% 0.67%
Portfolio turnover 229%(3) 412 % 302% 358% 167% 31%
Average commission rate paid(5) $0.0669 $0.0543 $0.0600 N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
Class B
---------------------------------------------------
Six Months From
Ended Inception
10/31/97 Year Ended April 30, 7/19/94 to
(Unaudited) 1997 1996 4/30/95
----------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $6.77 $8.73 $7.39 $7.28
Income from investment operations
Net investment income (loss) (0.07) (0.09)(4) (0.10)(4) 0.00
Net realized and unrealized gain (loss) 1.72 (0.88) 2.33 0.59
----- ----- ----- -----
Total from investment operations 1.65 (0.97) 2.23 0.59
----- ----- ----- -----
Less distributions
Dividends from net investment income -- -- -- --
Dividends from net realized gains -- (0.94) (0.89) (0.48)
In excess of accumulated net realized gains -- (0.05) -- --
----- ----- ----- -----
Total distributions -- (0.99) (0.89) (0.48)
----- ----- ----- -----
Change in net asset value 1.65 (1.96) 1.34 0.11
----- ----- ----- -----
Net asset value, end of period $8.42 $6.77 $8.73 $7.39
===== ===== ===== =====
Total return(1) 24.37%(3) (12.79)% 31.92% 8.69%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $1,860 $1,666 $1,348 $525
Ratio to average net assets of:
Expenses 1.97 %(2) 1.98% 2.06% 2.15%(2)
Net investment income (loss) (1.54)%(2) (1.15)% (1.18)% (0.06)%(2)
Portfolio turnover 229 %(3) 412% 302% 358%
Average commission rate paid(5) $0.0669 $0.0543 $0.0600 N/A
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized
(3) Not annualized
(4) Computed using average shares outstanding.
(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.
20 See Notes to Financial Statements
<PAGE>
PHOENIX STRATEGIC EQUITY SERIES FUND NOTES TO FINANCIAL STATEMENTS
October 31, 1997 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix Strategic Equity Series 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.
Each Series has distinct investment objectives. The Small Cap Series seeks
long-term growth of capital by investing in a diversified portfolio of
securities, primarily common stock, of relatively small companies which the
adviser believes have long-term investment potential. The Strategic Theme
Series seeks long-term appreciation of capital through investing in securities
of companies that the adviser believes are particularly well positioned to
benefit from cultural, demographic, regulatory, social or technological changes
worldwide. The Equity Opportunities Series seeks to achieve long-term growth of
capital from investment in a diversified group of stocks or securities
convertible into stocks.
Each Series 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 each Series 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. 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 Series is notified. Interest income is recorded on the accrual
basis. Realized gains and losses are determined on the identified cost basis.
C. Income taxes:
Each of the Series is treated as a separate taxable entity. It is the
policy of each Series in the Fund to comply with the requirements of the
Internal Revenue Code (the "Code") applicable to regulated investment
companies, and to distribute substantially all of its taxable income to its
shareholders. In addition, each Series intends to distribute an amount
sufficient to avoid imposition of any excise tax under Section 4982 of the
Code. Therefore, no provision for federal income taxes or excise taxes has been
made.
D. Distributions to shareholders:
Distributions are recorded by each Series 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 and other assets and liabilities are valued using the
foreign currency exchange rate effective at the end of the reporting period.
Cost of investments is translated at the currency exchange rate effective at
the trade date. The gain or loss resulting from a change in currency exchange
rates between the trade and settlement dates of a portfolio transaction, is
treated as a gain or loss on foreign currency. Likewise, the gain or loss
resulting from a change in currency exchange rates, between the date income is
accrued and paid, is treated as a gain or loss on foreign currency. The 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.
21
<PAGE>
PHOENIX STRATEGIC EQUITY SERIES FUND NOTES TO FINANCIAL STATEMENTS
October 31, 1997 (Unaudited) (Continued)
F. Expenses:
Expenses incurred by the Fund with respect to any two or more Series are
allocated in proportion to the net assets of each Series, except where
allocation of direct expense to each Series or an alternative allocation method
can be more fairly made.
G. Options:
The Fund may write covered options or purchase options contracts for the
purpose of hedging against changes in the market value of the underlying
securities or foreign currencies.
The Fund will realize a gain or loss upon the expiration or closing of the
option transaction. Gains and losses on written options are reported separately
in the Statement of Operations. When a written option is exercised, the
proceeds on sales or amounts paid are adjusted by the amount of premium
received. Options written are reported as a liability in the Statement of
Assets and Liabilities and subsequently marked-to-market to reflect the current
value of the option. The risk associated with written options is that the
change in value of options contracts may not correspond to the change in value
of the hedged instruments. In addition, losses may arise from changes in the
value of the underlying instruments, or if a liquid secondary market does not
exist for the contracts.
The Fund may purchase options which are included in the Fund's Schedule of
Investments and subsequently marked-to-market to reflect the current value of
the option. When a purchased option is exercised, the cost of the security is
adjusted by the amount of premium paid. The risk associated with purchased
options is limited to the premium paid.
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
As compensation for its services to the Fund, the Advisers, Phoenix
Investment Counsel, Inc. ("PIC") and National Securities and Research
Corporation ("NSR"), indirect majority-owned subsidiaries of Phoenix Home Life
Mutual Insurance Company ("PHL"), are entitled to a fee based upon the
following annual rates as a percentage of the average daily net assets of each
Series:
1st $1-2 $2+
Series Adviser $1 Billion Billion Billion
- ------ --------- ------------ --------- --------
Small Cap Series PIC 0.75% 0.70% 0.65%
Strategic Theme Series PIC 0.75% 0.70% 0.65%
Equity Opportunities Series NSR 0.70% 0.65% 0.60%
The Adviser has agreed to assume expenses and reduce the advisory fee for
the benefit of the Small Cap and Strategic Theme Series to the extent that
other operating expenses (excluding investment advisory fees, distribution
fees, interest, taxes, brokerage fees and commissions and extraordinary
expenses) exceed 0.50% and 0.40%, respectively, of the average daily net assets
of each Series.
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 $70,499 for Class A shares and
deferred sales charges of $455,364 for Class B shares for the six months ended
October 31, 1997. In addition, each Series 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 each Series. 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, $1,015,925 was earned by the Distributor,
$480,579 was paid to unaffiliated participants and $59,315 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, 0.30% 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 $595,251 of which PEPCO
retained $248,873 which is net of the fees paid to State Street.
At October 31, 1997, PHL and its affiliates held shares of the Fund as
follows:
Aggregate
Shares Net Asset Value
--------- ----------------
Strategic Theme Series--Class A 976,933 $14,517,229
--Class B 10,019 147,179
Equity Opportunities Series--Class A 124 1,069
--Class B 18,833 158,571
22
<PAGE>
PHOENIX STRATEGIC EQUITY SERIES FUND NOTES TO FINANCIAL STATEMENTS
October 31, 1997 (Unaudited) (Continued)
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities (excluding short-term secuities, options
written, futures, and forward currency contracts) for the six months ended
October 31, 1997, aggregated the following:
Purchases Sales
-------------- -------------
Small Cap Series ............... $759,130,977 $816,617,857
Strategic Theme Series ......... 436,526,667 449,355,125
Equity Opportunities Series . 424,481,183 441,748,966
There were no purchases or sales of long-term U.S. Government securities.
Written option activity for the six months ended October 31, 1997,
aggregated the following:
Call Options
-------------------------
Number of Amount of
Strategic Theme Series Options Premiums
- --------------------------------------- ----------- -------------
Options outstanding at April 30, 1997 -- $ --
Options written ..................... 150 127,046
Options canceled in closing purchase
transactions ..................... (150) (127,046)
Options expired ..................... -- --
Options exercised ..................... -- --
---- ----------
Options outstanding at October 31,
1997 .............................. -- $ --
==== ==========
4. CAPITAL LOSS CARRYOVERS
At April 30, 1997, Small Cap Series had a capital loss carryover of
$20,746,935, expiring in 2005, which may be used to offset future capital
gains.
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 following losses were deferred:
Small Cap Series $377,891, Strategic Theme Series $127,981 and Equity
Opportunities Series $877,524.
This report is not authorized for distribution to prospective investors in the
Phoenix Strategic Equity Series Fund unless preceded or accompanied by an
effective prospectus which includes information concerning the sales charge,
the Fund's record and other pertinent information.
23
<PAGE>
PHOENIX STRATEGIC EQUITY SERIES 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
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 for Phoenix Equity
Opportunities Fund
National Securities & Research Corporation
56 Prospect Street
Hartford, Connecticut 06115-0480
Investment Adviser for Phoenix Strategic Theme
Fund and Phoenix Small Cap Fund
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
<PAGE>
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 679 (12/97)
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 031
<NAME> PHOENIX SMALL CAP FUND CLASS A
<MULTIPLIER> 1000
<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> 332355
<INVESTMENTS-AT-VALUE> 350602
<RECEIVABLES> 19445
<ASSETS-OTHER> 1
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 370048
<PAYABLE-FOR-SECURITIES> 3167
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1029
<TOTAL-LIABILITIES> 4196
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 288541
<SHARES-COMMON-STOCK> 10882
<SHARES-COMMON-PRIOR> 10973
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1678)
<ACCUMULATED-NET-GAINS> 60741
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 18248
<NET-ASSETS> 365852
<DIVIDEND-INCOME> 269
<INTEREST-INCOME> 725
<OTHER-INCOME> 0
<EXPENSES-NET> (2673)
<NET-INVESTMENT-INCOME> (1679)
<REALIZED-GAINS-CURRENT> 86186
<APPREC-INCREASE-CURRENT> 20250
<NET-CHANGE-FROM-OPS> 104757
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2163
<NUMBER-OF-SHARES-REDEEMED> (2254)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 62899
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (25445)
<GROSS-ADVISORY-FEES> 1235
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2673
<AVERAGE-NET-ASSETS> 326626
<PER-SHARE-NAV-BEGIN> 14.13
<PER-SHARE-NII> (0.07)
<PER-SHARE-GAIN-APPREC> 5.97
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 20.03
<EXPENSE-RATIO> 1.33
<AVG-DEBT-OUTSTANDING> 0
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 032
<NAME> PHOENIX SMALL CAP FUND CLASS B
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<S> <C>
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<FISCAL-YEAR-END> APR-30-1998
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 021
<NAME> PHOENIX STRATEGIC THEME FUND CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
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<PERIOD-START> MAY-01-1997
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<NUMBER-OF-SHARES-REDEEMED> (679)
<SHARES-REINVESTED> 14
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 022
<NAME> PHOENIX STRATEGIC THEME FUND CLASS B
<MULTIPLIER> 1000
<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> 140251
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<TOTAL-LIABILITIES> 732
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<PAID-IN-CAPITAL-COMMON> 126073
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<OVERDISTRIBUTION-NII> (477)
<ACCUMULATED-NET-GAINS> 24055
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7348
<NET-ASSETS> 156999
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<INTEREST-INCOME> 435
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<EXPENSES-NET> (1208)
<NET-INVESTMENT-INCOME> (475)
<REALIZED-GAINS-CURRENT> 25116
<APPREC-INCREASE-CURRENT> 5128
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<NUMBER-OF-SHARES-REDEEMED> (324)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 12006
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<OVERDIST-NET-GAINS-PRIOR> (1062)
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<GROSS-EXPENSE> 1208
<AVERAGE-NET-ASSETS> 149850
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<PER-SHARE-NII> (0.08)
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 011
<NAME> PHOENIX EQUITY OPPORTUNITIES FUND CLASS A
<MULTIPLIER> 1000
<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> 181866
<INVESTMENTS-AT-VALUE> 191653
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<ASSETS-OTHER> 3
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<TOTAL-ASSETS> 192401
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<SENIOR-LONG-TERM-DEBT> 0
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<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 147548
<SHARES-COMMON-STOCK> 22110
<SHARES-COMMON-PRIOR> 23713
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (766)
<ACCUMULATED-NET-GAINS> 35375
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 9787
<NET-ASSETS> 191944
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<INTEREST-INCOME> 127
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<EXPENSES-NET> (1179)
<NET-INVESTMENT-INCOME> (766)
<REALIZED-GAINS-CURRENT> 37118
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<NUMBER-OF-SHARES-REDEEMED> (2022)
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<AVERAGE-NET-ASSETS> 190563
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<PER-SHARE-NII> (0.03)
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 012
<NAME> PHOENIX EQUITY OPPORTUNITIES FUND CLASS B
<MULTIPLIER> 1000
<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> 181866
<INVESTMENTS-AT-VALUE> 191653
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<TOTAL-ASSETS> 192401
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<PAID-IN-CAPITAL-COMMON> 147548
<SHARES-COMMON-STOCK> 221
<SHARES-COMMON-PRIOR> 246
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (766)
<ACCUMULATED-NET-GAINS> 35375
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 9787
<NET-ASSETS> 191944
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<INTEREST-INCOME> 127
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<EXPENSES-NET> (1179)
<NET-INVESTMENT-INCOME> (766)
<REALIZED-GAINS-CURRENT> 37118
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<NUMBER-OF-SHARES-SOLD> 20
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</TABLE>
