<PAGE>
Phoenix Investment Partners
ANNUAL REPORT
APRIL 30, 2000
ENGEMANN Phoenix-Engemann
Small-Cap Fund
-SENECA- Phoenix-Seneca
Growth Fund
(FORMERLY PHOENIX-SENECA
EQUITY OPPORTUNITIES FUND)
Phoenix-Seneca
Strategic Theme Fund
[LOGO]
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
[PHOTO]
We are pleased to provide this annual report for the 12 months ended
April 30, 2000. We are also pleased to report on the strong performance achieved
during the last fiscal year.
For the 12 months ended April 30, 2000, Class A shares of the Phoenix-Engemann
Small Cap Fund rose 86.40%, more than double the 31.38% one-year return for the
Russell 2000 Growth Index.(1) Investors should note that the Fund's return for
the period was achieved largely due to investments in IPOs and a significant
overweighting in technology stocks.(2) Both the Phoenix-Seneca Growth Fund and
the Phoenix-Seneca Strategic Theme Fund also outperformed their benchmark index,
the S&P 500 Index.(3) Phoenix-Seneca Growth Fund Class A shares returned 28.97%
and Phoenix-Seneca Strategic Theme Fund Class A shares were up 53.26% compared
with a return of 10.34% for the S&P 500 Index for the one-year period.
On the following pages, your Funds' portfolio managers discuss their
investment strategy over the last year and their outlook for the next six
months. We hope you find their 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
(1) THE RUSSELL 2000 GROWTH INDEX MEASURES SMALL-COMPANY GROWTH-ORIENTED STOCK
MARKET PERFORMANCE. PERFORMANCE IS CALCULATED ON A TOTAL-RETURN BASIS WITH
DIVIDENDS REINVESTED, AS REPORTED BY FRANK RUSSELL COMPANY. THE INDEX IS
UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT.
(2) PERFORMANCE WAS ACHIEVED IN RAPIDLY RISING MARKETS AND MAY HAVE RESULTED
FROM PARTICIPATION IN INITIAL PUBLIC OFFERINGS (IPOS). THERE IS NO ASSURANCE
THAT SIMILAR RETURNS WILL BE ACHIEVED IN THE FUTURE.
(3) THE S&P 500 INDEX MEASURES STOCK MARKET PERFORMANCE. PERFORMANCE IS
CALCULATED ON A TOTAL-RETURN BASIS WITH DIVIDENDS REINVESTED, AS REPORTED BY
FRANK RUSSELL COMPANY. THE INDEX IS UNMANAGED AND NOT AVAILABLE FOR DIRECT
INVESTMENT.
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>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Phoenix-Engemann Small Cap Fund........................................... 3
Phoenix-Seneca Growth Fund................................................ 12
Phoenix-Seneca Strategic Theme Fund....................................... 20
Notes to Financial Statements............................................. 30
</TABLE>
2
<PAGE>
PHOENIX-ENGEMANN SMALL CAP FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM, ROGER ENGEMANN, CFA, LOU
ABEL, CFA, AND YOSSI LIPSKER
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Fund seeks long-term capital appreciation. The Fund may invest in smaller
capitalization stocks, and investors should note that small-company investing
involves added risks, including greater price volatility, less liquidity and
increased competitive threat.
Q: HOW DID THE FUND PERFORM OVER THE LAST FISCAL YEAR?
A: For the 12 months ended April 30, 2000, Class A shares rose 86.40% and
Class B shares gained 85.06%(1), far surpassing the 18.42% return for the
Russell 2000 Index as well as the 31.38% return for the Russell 2000 Growth
Index.(2) All performance figures assume reinvestment of distributions and
exclude the effect of sales charges.
Q: WHAT FACTORS CONTRIBUTED TO THE FUND'S STRONG PERFORMANCE?
A: The technology sector experienced very strong returns, fueled by
extraordinary growth trends in Internet-related companies, business-to-business
e-commerce and wireless communications. The Fund's overweighting in this sector
was a significant contributor to performance. In addition, some of our largest
holdings were also the biggest gainers. For example, Applied Micro Circuits, our
number one holding in the portfolio, was up nine-fold for the period we owned
it. Other significant contributors to performance included BEA Systems, an
e-commerce infrastructure company, and Commerce One, a business-to-business
e-commerce company.
Q: WHAT WERE SOME DISAPPOINTING PORTFOLIO HOLDINGS?
A: Some stocks that did not meet our expectations and have subsequently been
sold out of the portfolio included Nextcard, a marketer of consumer credit cards
via the Internet, CKE Restaurants, which had difficulty integrating its
acquisition of Hardee's, and Restoration Hardware, which experienced rising
inventory levels and disappointing sales.
Q: WERE ANY NEW STOCKS ADDED TO THE PORTFOLIO OVER THE LAST SIX MONTHS? ANY
POSITIONS SOLD?
A: We continue to find attractive new investment ideas in niche sectors with
exciting growth prospects. One area that we believe offers investor strong
opportunities for growth is the semiconductor capital equipment sector. Two
additions to the portfolio in this sector are PRI Automation and Rudolph
Technologies. We are also selectively adding some stocks in the health-care
industry, such as Onmicare, a pharmaceutical distributor to long-term care
facilities, and IDEC Pharmaceuticals, a biotechnolgy company with strong
prospects for its lead drug Rituxan.
(1) PERFORMANCE WAS ACHIEVED IN RAPIDLY RISING MARKETS AND MAY HAVE RESULTED
FROM PARTICIPATION IN INITIAL PUBLIC OFFERINGS (IPOS). THERE IS NO ASSURANCE
THAT SIMILAR RETURNS WILL BE ACHIEVED IN THE FUTURE.
(2) THE RUSSELL 2000 INDEX MEASURES SMALL-COMPANY STOCK MARKET PERFORMANCE. THE
RUSSELL 2000 GROWTH INDEX MEASURES SMALL-COMPANY GROWTH-ORIENTED STOCK
MARKET PERFORMANCE PERFORMANCE IS CALCULATED ON A TOTAL-RETURN BASIS WITH
DIVIDENDS REINVESTED, AS REPORTED BY FRANK RUSSELL COMPANY. THE INDICES ARE
UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT.
3
<PAGE>
PHOENIX-ENGEMANN SMALL CAP FUND (CONTINUED)
Q: WHAT IS YOUR CURRENT OUTLOOK?
A: We live in a time of dramatic change and extraordinary opportunity. Wireless
communication, business-to-business e-commerce, biotechnolgy and broad-band
Internet access should all experience explosive growth. Historically, small- to
mid-capitalization companies have been best-positioned to capitalize on change
and benefit from such secular growth trends.
Since the beginning of the year, however, there has been no place to hide
from volatility. Rising interest rates have caused investors to reassess the
possibility that the economy will slow down. Although we continue to see
tremendous opportunity for growth, the market will most likely tread water until
the Federal Reserve stops raising interest rates.
In the meantime, we will maintain our investment strategy. We will stick
with what we deem to be the backbone companies in the most promising sectors --
companies we believe have strong fundamentals, superior management, market
leadership and significant growth potential.
MAY 26, 2000
4
<PAGE>
Phoenix-Engemann Small Cap Fund
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 4/30/00
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR TO 4/30/00 DATE
------- ----------- ------------
<S> <C> <C> <C>
Class A Shares at NAV(2) 86.40% 34.12% 10/16/95
Class A Shares at POP(3) 75.69 32.38 10/16/95
Class B Shares at NAV(2) 85.06 33.12 10/16/95
Class B Shares with CDSC(4) 81.06 32.96 10/16/95
Russell 2000 Growth Index(6) 31.38 15.00 10/16/95
Russell 2000 Index(7) 18.42 13.53 10/16/95
</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.
(5) This chart illustrates POP returns on Class A and Class B Shares since
10/16/95.
(6) The Russell 2000 Growth Index is a measure of small-capitalization growth-
oriented stock performance. The index's performance does not reflect sales
charges.
(7) The Russell 2000 Index is a measure of small-capitalization performance.
The index'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 SMALL CAP FUND CLASS A(5) PHOENIX SMALL CAP FUND CLASS B(5) RUSSELL 2000 GROWTH INDEX(6) RUSSELL 2000 INDEX(7)
<S> <C> <C> <C> <C>
10/95 $9,425 $10,000 $10,000 $10,000
96 $15,785 $16,680 $12,004 $11,617
97 $13,349 $14,007 $10,378 $11,623
98 $20,335 $21,174 $14,913 $16,551
99 $19,184 $19,821 $14,351 $15,019
00 $35,759 $36,681 $18,854 $17,786
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
10/16/95 (inception of the Fund) in Class A and Class B shares. The total return
for Class A shares reflects the maximum sales charge of 5.75% on the initial
investment. The total return for Class B shares reflects the CDSC charges which
decline from 5% to 0% over a five year period. Performance assumes dividends and
capital gains are reinvested.
SECTOR WEIGHTINGS 4/30/00
As a percentage of equity holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 52%
Consumer Cyclicals 14
Financials 8
Capital Goods 7
Health-Care 7
Transportation 4
Consumer Staples 4
Other 4
</TABLE>
5
<PAGE>
Phoenix-Engemann Small Cap Fund
TEN LARGEST HOLDINGS AT APRIL 30, 2000 (AS A PERCENTAGE OF TOTAL NET ASSETS)
<TABLE>
<C> <S> <C>
1. Applied Micro Circuits Corp. 5.9%
MANUFACTURER OF INTEGRATED CIRCUITS
2. BEA Systems, Inc. 4.8%
COMPUTER SOFTWARE DESIGNER
3. Advanced Energy Industries, Inc. 3.4%
POWER CONVERSION AND CONTROL SYSTEMS MANUFACTURER
4. Micrel, Inc. 3.2%
ANALOG POWER INTEGRATED CIRCUIT PRODUCER
5. Kansas City Southern Industries, Inc. 3.0%
FINANCIAL SERVICES COMPANY
6. Metris Companies, Inc. 2.7%
DIRECT MARKETER OF CONSUMER CREDIT PRODUCTS
7. Cost Plus, Inc. 2.5%
SPECIALTY RETAILER OF CASUAL HOME LIVING AND ENTERTAINING PRODUCTS
8. Flextronics International Ltd. 2.5%
ELECTRONIC MANUFACTURING SERVICES PROVIDER
9. Peregrine Systems, Inc. 2.0%
COMPUTER SOFTWARE DEVELOPER
10. Commerce One, Inc. 2.0%
PROVIDER OF BUSINESS-TO-BUSINESS ELECTRONIC COMMERCE SOLUTIONS
</TABLE>
INVESTMENTS AT APRIL 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMON STOCKS--94.6%
AIR FREIGHT--1.2%
Expeditors International of Washington,
Inc..................................... 90,000 $ 3,847,500
BIOTECHNOLOGY--3.1%
Aviron(b)............................... 65,000 1,564,062
Cor Therapeutics, Inc.(b)............... 51,000 3,885,562
Coulter Pharmaceutical, Inc.(b)......... 30,000 547,500
Gene Logic, Inc.(b)..................... 24,000 645,000
Pharmacyclics, Inc.(b).................. 30,000 1,361,250
Progenics Pharmaceuticals, Inc.(b)...... 45,000 2,070,000
------------
10,073,374
------------
BROADCASTING (TELEVISION, RADIO & CABLE)--0.3%
Spanish Broadcasting System, Inc. Class
A(b).................................... 45,000 840,937
COMMUNICATIONS EQUIPMENT--1.3%
Audiovox Corp. Class A(b)............... 45,600 1,564,650
Metawave Communications Corp.(b)........ 66,250 877,812
Ulticom, Inc.(b)........................ 52,000 1,716,000
------------
4,158,462
------------
COMPUTERS (SOFTWARE & SERVICES)--21.2%
Agile Software Corp.(b)................. 40,000 1,482,500
Aspsecure.com Corp.(b)(c)............... 180,000 585,000
BEA Systems, Inc.(b).................... 320,000 15,440,000
Bluestone Software, Inc.(b)............. 111,000 2,337,937
C-bridge Internet Solutions, Inc.(b).... 50,000 1,325,000
Commerce One, Inc.(b)................... 105,000 6,411,562
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)--CONTINUED
E.piphany, Inc.(b)...................... 12,500 $ 825,781
Extensity, Inc.(b)...................... 70,500 863,625
HNC Software, Inc.(b)................... 20,000 990,000
Integrated Information Systems,
Inc.(b)................................. 79,000 538,187
Interwoven, Inc.(b)..................... 30,000 2,077,500
Keynote Systems, Inc.(b)................ 73,000 3,275,875
LivePerson, Inc.(b)..................... 208,000 1,300,000
Luminant Worldwide Corp.(b)............. 100,000 868,750
MatrixOne, Inc.(b)...................... 26,950 889,350
NYFIX, Inc.(b).......................... 170,000 4,579,375
New Era of Networks, Inc.(b)............ 50,000 1,568,750
PC-Tel, Inc.(b)......................... 26,000 871,000
Peregrine Systems, Inc.(b).............. 270,000 6,496,875
Predictive Systems, Inc.(b)............. 41,300 1,946,262
Prime Response, Inc.(b)................. 48,200 313,300
Primus Knowledge Solutions.............. 64,000 2,380,000
PurchasePro.com, Inc.(b)................ 50,500 1,515,000
Sapient Corp.(b)........................ 50,000 3,959,375
Selectica, Inc.(b)...................... 850 32,300
Silverstream Software, Inc.(b).......... 21,000 829,500
Software Technologies Corp.(b).......... 150,000 2,681,250
Versata, Inc.(b)........................ 31,950 970,481
Websense, Inc.(b)....................... 52,000 1,690,000
------------
69,044,535
------------
CONSUMER FINANCE--2.9%
Metris Companies, Inc................... 230,000 8,625,000
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Small Cap Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
CONSUMER FINANCE--CONTINUED
NextCard, Inc.(b)....................... 71,000 $ 749,938
------------
9,374,938
------------
ELECTRICAL EQUIPMENT--6.5%
Advanced Energy Industries, Inc.(b)..... 160,000 11,040,000
Flextronics International Ltd.(b)....... 115,000 8,078,750
Viasystems Group, Inc.(b)............... 121,000 1,928,438
------------
21,047,188
------------
ELECTRONICS (INSTRUMENTATION)--3.5%
Aclara Biosciences, Inc.(b)............. 13,000 495,625
Caliper Technologies Corp.(b)........... 15,000 562,500
Meade Instruments Corp.(b).............. 85,000 6,215,625
Rudolph Technologies, Inc.(b)........... 140,000 4,252,500
------------
11,526,250
------------
ELECTRONICS (SEMICONDUCTORS)--20.4%
Anadigics, Inc.(b)...................... 63,500 4,778,375
Applied Micro Circuits Corp.(b)......... 150,000 19,331,250
Conexant Systems, Inc.(b)............... 90,000 5,388,750
Intersil Holding Corp.(b)............... 67,500 2,362,500
Micrel, Inc.(b)......................... 120,000 10,380,000
NETsilicon, Inc.(b)..................... 150,000 2,615,625
Quantam Effect Devices, Inc.(b)......... 27,100 1,578,575
Quicklogic Corp.(b)..................... 102,000 2,996,250
SDL, Inc.(b)............................ 30,000 5,850,000
Silcon Storage Technology, Inc.(b)...... 52,000 5,070,000
TriQuint Semiconductor, Inc.(b)......... 60,000 6,168,750
------------
66,520,075
------------
ENGINEERING & CONSTRUCTION--0.6%
SBA Communications Corp.(b)............. 48,000 1,950,000
EQUIPMENT (SEMICONDUCTORS)--2.7%
Cymer, Inc.(b).......................... 91,000 3,554,688
Mattson Technology, Inc.(b)............. 27,000 1,326,375
PRI Automation, Inc.(b)................. 50,000 3,993,750
------------
8,874,813
------------
FINANCIAL (DIVERSIFIED)--2.2%
Federal Agricultural Mortgage Corp.
Class C(b).............................. 176,000 2,640,000
Pinnacle Holdings, Inc. (b)............. 80,000 4,495,000
------------
7,135,000
------------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--1.4%
Emisphere Technologies, Inc.(b)......... 15,900 $ 652,645
Inhale Therapeutic Systems, Inc.(b)..... 40,000 2,475,000
Tanox, Inc.(b).......................... 39,000 1,140,750
ViroPharma, Inc.(b)..................... 9,000 136,125
------------
4,404,520
------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--1.4%
MiniMed, Inc. (b)....................... 36,000 4,425,750
HEALTH CARE (SPECIALIZED SERVICES)--0.7%
Omnicare, Inc........................... 145,000 2,202,188
INVESTMENT MANAGEMENT--1.5%
Gabelli Asset Management, Inc. Class
A(b).................................... 241,500 4,799,813
RAILROADS--3.0%
Kansas City Southern Industries, Inc.... 135,000 9,703,125
RESTAURANTS--1.6%
Cheesecake Factory, Inc. (The)(b)....... 130,000 5,321,875
RETAIL (BUILDING SUPPLIES)--0.5%
Fastenal Co............................. 28,000 1,636,250
RETAIL (DISCOUNTERS)--1.8%
99 Cents Only Stores(b)................. 160,000 6,020,000
RETAIL (FOOD CHAINS)--2.0%
Smart & Final, Inc.(b).................. 303,832 2,411,667
Whole Foods Market, Inc.(b)............. 95,000 4,043,438
------------
6,455,105
------------
RETAIL (SPECIALTY)--3.7%
Cost Plus, Inc.(b)...................... 270,000 8,251,875
Williams-Sonoma, Inc.(b)................ 112,000 3,878,000
------------
12,129,875
------------
RETAIL (SPECIALTY-APPAREL)--1.0%
Children's Place Retail Stores, Inc.
(The)(b)................................ 148,000 3,293,000
SERVICES (ADVERTISING/MARKETING)--0.8%
MyPoints.com, Inc.(b)................... 20,000 350,000
Women.com Networks, Inc.(b)............. 455,930 2,279,650
------------
2,629,650
------------
SERVICES (COMMERCIAL & CONSUMER)--6.3%
Corporate Executive Board Co.
(The)(b)................................ 100,000 5,875,000
Diamond Technology Partners, Inc. (b)... 26,500 2,096,813
MIPS Technologies, Inc. Class A(b)...... 90,000 2,598,750
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Phoenix-Engemann Small Cap Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
SERVICES (COMMERCIAL & CONSUMER)--CONTINUED
NCO Group, Inc.(b)...................... 92,000 $ 3,162,500
Pinnacle Oil International, Inc.(b)..... 127,000 3,683,000
Universal Access, Inc.(b)............... 66,300 1,359,150
Vicinity Corp.(b)....................... 57,500 682,813
i3 Mobile, Inc.(b)...................... 52,000 975,000
------------
20,433,026
------------
SERVICES (COMPUTER SYSTEMS)--0.7%
eMachines, Inc.(b)...................... 260,000 2,226,250
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.5%
Dobson Communications Corp. Class
A(b).................................... 69,000 1,768,125
TELECOMMUNICATIONS (LONG DISTANCE)--1.8%
Network Plus Corp.(b)................... 121,000 2,299,000
WinStar Communications, Inc.(b)......... 90,000 3,588,750
------------
5,887,750
------------
--------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $202,391,047) 307,729,374
--------------------------------------------------------------------
FOREIGN COMMON STOCKS--3.9%
COMMUNICATIONS EQUIPMENT--0.8%
Research in Motion Ltd. (Canada)(b)..... 60,000 2,550,000
COMPUTERS (SOFTWARE & SERVICES)--0.2%
BreezeCom Ltd. (Israel)(b).............. 26,000 715,000
INSURANCE (LIFE/HEALTH)--1.3%
London Pacific Group Ltd. Sponsored ADR
(United Kingdom)(b)..................... 322,800 4,075,350
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
OIL & GAS (EXPLORATION & PRODUCTION)--1.6%
Encal Energy Ltd. (Canada)(b)........... 968,800 $ 5,230,890
--------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $7,716,734) 12,571,240
--------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--98.5%
(IDENTIFIED COST $210,107,781) 320,300,614
--------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000)
------------ ------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--2.0%
COMMERCIAL PAPER--2.0%
Lexington Parker Capital Co.
LLC 6.06%, 5/1/00............. A-1+ $6,680 6,680,000
------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $6,680,000) 6,680,000
------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--100.5%
(IDENTIFIED COST $216,787,781) 326,980,614(a)
Cash and receivables, less liabilities--(0.5%) (1,652,552)
------------
NET ASSETS--100.0% $325,328,062
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $137,116,626 and gross
depreciation of $28,069,841 for federal income tax purposes. At April 30,
2000, the aggregate cost of securities for federal income tax purposes was
$217,933,829.
(b) Non-income producing.
(c) Security valued at fair value as determined in good faith by or under the
direction of the Trustees.
8 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Small Cap Fund
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $216,787,781) $ 326,980,614
Cash 4,361
Receivables
Investment securities sold 1,981,641
Fund shares sold 384,871
Dividends 46,483
Prepaid expenses 3,171
--------------
Total assets 329,401,141
--------------
LIABILITIES
Payables
Investment securities purchased 2,772,658
Fund shares repurchased 702,439
Investment advisory fee 197,826
Distribution fee 151,148
Transfer agent fee 101,788
Financial agent fee 26,596
Trustees' fee 12,559
Accrued expenses 108,065
--------------
Total liabilities 4,073,079
--------------
NET ASSETS $ 325,328,062
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 146,218,135
Accumulated net realized gain 68,917,094
Net unrealized appreciation 110,192,833
--------------
NET ASSETS $ 325,328,062
==============
CLASS A
Shares of beneficial interest outstanding,
$0.0001 par value, unlimited authorization
(Net Assets $185,532,582) 6,324,215
Net asset value per share $29.34
Offering price per share $29.34/(1-5.75%) $31.13
CLASS B
Shares of beneficial interest outstanding,
$0.0001 par value, unlimited authorization
(Net Assets $139,795,480) 4,950,241
Net asset value and offering price per share $28.24
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 329,178
Dividends 118,311
--------------
Total investment income 447,489
--------------
EXPENSES
Investment advisory fee 2,089,096
Distribution fee, Class A 401,625
Distribution fee, Class B 1,178,959
Financial agent 242,575
Transfer agent 608,840
Printing 72,809
Custodian 29,754
Professional 28,617
Trustees 24,632
Registration 20,463
Miscellaneous 33,116
--------------
Total expenses 4,730,486
Custodian fees paid indirectly (3,597)
--------------
Net expenses 4,726,889
--------------
NET INVESTMENT LOSS (4,279,400)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 98,505,362
Net realized gain on foreign currency transactions 668
Net change in unrealized appreciation (depreciation) on
investments 75,397,017
--------------
NET GAIN ON INVESTMENTS 173,903,047
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 169,623,647
==============
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Phoenix-Engemann Small Cap 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) $ (4,279,400) $ (3,189,899)
Net realized gain (loss) 98,506,030 (24,983,780)
Net change in unrealized appreciation
(depreciation) 75,397,017 6,208,917
------------- ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 169,623,647 (21,964,762)
------------- ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A -- (5,773,229)
Net realized gains, Class B -- (4,219,826)
------------- ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS -- (9,993,055)
------------- ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(25,110,060 and 18,013,110 shares,
respectively) 524,113,700 273,064,204
Net asset value of shares issued from
reinvestment of distributions
(0 and 360,829 shares, respectively) -- 5,383,573
Cost of shares repurchased (26,495,134
and 22,385,155 shares, respectively) (561,376,449) (343,459,404)
------------- ------------
Total (37,262,749) (65,011,627)
------------- ------------
CLASS B
Proceeds from sales of shares
(1,120,897 and 987,925 shares,
respectively) 25,694,560 14,507,598
Net asset value of shares issued from
reinvestment of distributions
(0 and 243,730 shares, respectively) -- 3,536,528
Cost of shares repurchased (2,025,437
and 4,075,435 shares, respectively) (43,389,442) (61,757,518)
------------- ------------
Total (17,694,882) (43,713,392)
------------- ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (54,957,631) (108,725,019)
------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS 114,666,016 (140,682,836)
NET ASSETS
Beginning of period 210,662,046 351,344,882
------------- ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$0 AND $0, RESPECTIVELY] $ 325,328,062 $210,662,046
============= ============
</TABLE>
10 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Small Cap Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------
FROM
YEAR ENDED APRIL 30 INCEPTION
----------------------------------------------- 10/16/95 TO
2000 1999 1998 1997 4/30/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.74 $ 17.37 $ 14.13 $ 16.74 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.31) (0.14)(5) (0.08)(5) (0.05)(5) (0.04)(1)(5)
Net realized and unrealized gain (loss) 13.91 (0.88) 6.80 (2.53) 6.79
-------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS 13.60 (1.02) 6.72 (2.58) 6.75
-------- -------- -------- -------- -------
LESS DISTRIBUTIONS
Dividends from net realized gains -- (0.61) (3.48) (0.02) --
In excess of net investment income -- -- -- -- (0.01)
In excess of net realized gains -- -- -- (0.01) --
-------- -------- -------- -------- -------
TOTAL DISTRIBUTIONS -- (0.61) (3.48) (0.03) (0.01)
-------- -------- -------- -------- -------
Change in net asset value 13.60 (1.63) 3.24 (2.61) 6.74
-------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 29.34 $ 15.74 $ 17.37 $ 14.13 $ 16.74
======== ======== ======== ======== =======
Total return(2) 86.40% (5.66)% 52.33 % (15.43)% 67.48 %(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $185,533 $121,313 $203,560 $155,089 $98,372
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.38 %(6) 1.46 %(6) 1.31 % 1.37 % 1.50 %(3)
Net investment income (loss) (1.22)% (0.95)% (0.48)% (0.28)% (0.53)%(3)
Portfolio turnover 113 % 276% 498% 325% 103 %(4)
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------------
FROM
YEAR ENDED APRIL 30 INCEPTION
--------------------------------------------- 10/16/95 TO
2000 1999 1998 1997 4/30/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.26 $ 16.99 $ 13.98 $ 16.68 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.47) (0.25)(5) (0.21)(5) (0.17)(5) (0.09)(1)(5)
Net realized and unrealized gain (loss) 13.45 (0.87) 6.70 (2.50) 6.77
-------- ------- -------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 12.98 (1.12) 6.49 (2.67) 6.68
-------- ------- -------- ------- -------
LESS DISTRIBUTIONS
Dividends from net realized gains -- (0.61) (3.48) (0.02) --
In excess of net realized gains -- -- -- (0.01) --
-------- ------- -------- ------- -------
TOTAL DISTRIBUTIONS -- (0.61) (3.48) (0.03) --
-------- ------- -------- ------- -------
Change in net asset value 12.98 (1.73) 3.01 (2.70) 6.68
-------- ------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 28.24 $ 15.26 $ 16.99 $ 13.98 $ 16.68
======== ======= ======== ======= =======
Total return(2) 85.06% (6.39)% 51.16 % (16.03)% 66.80 %(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $139,795 $89,349 $147,785 $97,647 $45,168
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.13 %(6) 2.21 %(6) 2.06 % 2.12 % 2.26 %(3)
Net investment income (loss) (1.97)% (1.70)% (1.22)% (1.03)% (1.44)%(3)
Portfolio turnover 113 % 276 % 498 % 325 % 103 %(4)
</TABLE>
(1) Includes reimbursement of operating expenses by investment advisor 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) The ratio of operating expenses to average net assets excludes the effect
of expense offsets for custodian fees; if expense offsets were included,
the ratio would not significantly differ.
See Notes to Financial Statements 11
<PAGE>
PHOENIX-SENECA GROWTH FUND
(FORMERLY CALLED PHOENIX-SENECA EQUITY OPPORTUNITIES FUND)
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM, GAIL SENECA, PH.D., RICK
LITTLE, CFA AND RON JACKS, CFA
Q: WHY DID THE FUND'S NAME CHANGE?
A: Effective May 12, 2000, Phoenix-Seneca Growth Fund merged with Phoenix-Seneca
Equity Opportunities Fund. Prior to the funds' merger, Seneca Capital Management
LLC managed both funds using substantially identical investment objectives and
primary investment strategies, which will also be used with the combined fund.
The combined fund is called Phoenix-Seneca Growth Fund, and the benchmark index
is the S&P 500 Index.(1) The total expense ratio is projected to be slightly
lower than the total expense ratios of the former individual funds. The
reorganization was structured as a non-taxable transaction for shareholders.
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Fund seeks long-term capital appreciation by investing primarily in
common stocks of dynamic, rapidly growing companies and focusing on strong
relative earnings growth. The Fund may invest in smaller capitalization stocks,
and investors should note that small-company investing involves added risks,
including greater price volatility, less liquidity and increased competitive
threat.
Q: HOW DID THE FUND PERFORM OVER THE LAST FISCAL YEAR?
A: For the 12 months ended April 30, 2000, Class A shares rose 28.97% and
Class B shares gained 28.11% compared with a return of 10.34% for the S&P 500
Index.(1) All performance figures assume reinvestment of distributions and
exclude the effect of sales charges.
Q: WHAT FACTORS CONTRIBUTED TO THE FUND'S STRONG PERFORMANCE?
A: Seneca's emphasis on technology companies and good stock selection within the
technology sector have helped performance. Technology was the best performing
sector in the S&P 500 Index, returning 13.3% for the first quarter of 2000, the
most recent reporting period available. Eight of the top ten performing stocks
in the S&P 500 Index were technology names. Technology and communications
companies like Intel (semiconductor manufacturer), Nortel Networks
(communications equipment), Corning (fiber optics) and Nokia (telecommunications
systems and equipment) have all produced excellent results in the last year.
Q: WHAT IS YOUR PERSPECTIVE ON THE MARKET'S FOCUS ON TECHNOLOGY STOCKS?
A: An outstanding feature of the market is its bifurcation into two distinct
camps: the new- and old-economy stocks. Almost without exception, only
new-economy stocks have participated in this year's bull market. This market
divide began in earnest in 1998. Since then, technology stocks have risen at
3-1/2 times the rate of non-tech stocks. The bulk of the market -- the nearly
70% of S&P 500 stocks that are not technology companies -- has not appreciated
markedly in two years.
(1) THE S&P 500 INDEX MEASURES STOCK MARKET PERFORMANCE. PERFORMANCE IS
CALCULATED ON A TOTAL-RETURN BASIS WITH DIVIDENDS REINVESTED, AS REPORTED BY
FRANK RUSSELL COMPANY. THE INDEX IS UNMANAGED AND NOT AVAILABLE FOR DIRECT
INVESTMENT.
12
<PAGE>
PHOENIX-SENECA GROWTH FUND (CONTINUED)
Are we in the midst of a technology mania in the market? Or, is the market
reflecting genuinely revolutionary trends in productivity, which will foster
durable prosperity for the U.S. economy?
We would answer both questions affirmatively. Speculation in "concept"
stocks -- companies with an idea but not a business model -- is rampant.
Traders, many of whom have no apparent understanding of investment fundamentals,
routinely send stocks soaring beyond reason. Excitement over the initial public
offering of Palm Inc., for example, drove Palm's valuation to a level greater
than that of its parent company. Frenzied activity rotates from one set of "hot"
stocks to the next.
We are pleased to have produced such strong results. When the market is as
narrow as it has been, stock selection is crucial. A strong fundamental
research-based approach, such as ours, should continue to excel in this type of
environment, although past performance is not a guarantee of future results.
MAY 17, 2000
13
<PAGE>
Phoenix-Seneca 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 DATES
------ ------- -------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Class A Shares at NAV(2) 28.97% 20.57% 15.46% -- --
Class A Shares at POP(3) 21.56 19.15 14.78 -- --
Class B Shares at NAV(2) 28.11 19.71 -- 18.48% 7/19/94
Class B Shares with CDSC(4) 24.11 19.71 -- 18.48 7/19/94
Russell 2000 Growth Index(6) 31.38 16.96 13.96 17.08 7/19/94
S&P 500 Index(7) 10.34 25.37 18.83 24.66 7/19/94
</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.
(5) This chart illustrates POP returns on Class A Shares for ten years. Returns
on Class B Shares will vary due to differing sales charges.
(6) The Russell 2000 Growth Index is a measure of small-capitalization growth-
oriented stock performance. The index's performance does not reflect sales
charges.
(7) 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-SENECA GROWTH RUSSELL 2000 S&P
FUND CLASS A(5) GROWTH INDEX(6) 500
INDEX(7)
<S> <C> <C> <C>
04/90 $9,425 $10,000 $10,000
91 $10,571 $11,279 $11,763
92 $11,659 $12,793 $13,406
93 $13,583 $13,547 $14,645
94 $14,261 $15,517 $15,428
95 $15,568 $16,871 $18,124
96 $20,684 $23,511 $23,610
97 $18,162 $20,326 $29,561
98 $26,273 $29,209 $41,761
99 $30,761 $28,107 $50,871
00 $39,674 $36,928 $56,133
</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 34%
Consumer Staples 11
Health-Care 11
Financials 11
Capital Goods 9
Basic Materials 7
Consumer Cyclicals 7
Other 10
</TABLE>
14
<PAGE>
Phoenix-Seneca Growth Fund
TEN LARGEST HOLDINGS AT APRIL 30, 2000 (AS A PERCENTAGE OF TOTAL NET ASSETS)
<TABLE>
<C> <S> <C>
1. Corning, Inc. 4.9%
SPECIALTY TECHNOLOGY-BASED MANUFACTURER
2. Halliburton Co. 4.3%
LEADING PROVIDER OF OIL FIELD SERVICES
3. STMicroelectronics N.V. (Netherlands) 4.2%
MANUFACTURER OF SEMICONDUCTOR INTEGRATED CIRCUITS
4. General Electric Co. 4.0%
DIVERSIFIED INDUSTRIAL, MANUFACTURING AND FINANCIAL SERVICES
PROVIDER
5. Nokia Oyj Sponsored ADR (Finland) 4.0%
LEADING TELECOMMUNICATIONS EQUIPMENT PROVIDER
6. Morgan Stanley Dean Witter & Co. 3.9%
LEADING GLOBAL FINANCIAL SERVICES
7. AMFM, Inc. 3.9%
RADIO BROADCASTING AND MEDIA-RELATED COMPANY
8. Applied Materials, Inc. 3.8%
SEMICONDUCTOR EQUIPMENT AND MATERIAL SUPPLIER
9. Citigroup, Inc. 3.8%
DIVERSIFIED FINANCIAL SERVICES HOLDING COMPANY
10. Lowe's Companies, Inc. 3.7%
BUILDING MATERIALS RETAILER AND DISTRIBUTOR
</TABLE>
INVESTMENTS AT APRIL 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMON STOCKS--85.8%
ALUMINUM--2.5%
Alcoa, Inc.............................. 91,750 $ 5,952,281
BANKS (MAJOR REGIONAL)--2.6%
Mellon Financial Corp................... 194,880 6,260,520
BEVERAGES (NON-ALCOHOLIC)--2.3%
Coca-Cola Co. (The)..................... 116,300 5,473,369
BROADCASTING (TELEVISION, RADIO & CABLE)--3.9%
AMFM, Inc.(b)........................... 140,010 9,293,164
CHEMICALS--1.9%
Dow Chemical Co. (The).................. 39,360 4,447,680
COMMUNICATIONS EQUIPMENT--7.6%
General Motors Corp. Class H(b)......... 87,760 8,452,385
Metricom, Inc.(b)....................... 29,700 833,456
Motorola, Inc........................... 73,450 8,745,141
------------
18,030,982
------------
COMPUTERS (HARDWARE)--3.0%
Sun Microsystems, Inc.(b)............... 78,260 7,195,029
COMPUTERS (NETWORKING)--3.1%
Cisco Systems, Inc.(b).................. 105,472 7,312,176
ELECTRICAL EQUIPMENT--4.0%
General Electric Co..................... 60,600 9,529,350
ELECTRONICS (SEMICONDUCTORS)--3.2%
Intel Corp.............................. 59,540 7,550,416
ENTERTAINMENT--2.1%
Walt Disney Co. (The)................... 114,050 4,939,791
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
EQUIPMENT (SEMICONDUCTORS)--4.4%
Applied Materials, Inc.(b).............. 90,000 $ 9,163,125
KLA-Tencor Corp.(b)..................... 17,430 1,305,071
------------
10,468,196
------------
FINANCIAL (DIVERSIFIED)--7.7%
Citigroup, Inc.......................... 153,855 9,144,756
Morgan Stanley Dean Witter & Co......... 121,480 9,323,590
------------
18,468,346
------------
HEALTH CARE (DIVERSIFIED)--2.4%
Johnson & Johnson....................... 70,890 5,848,425
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--6.0%
Merck & Co., Inc........................ 126,240 8,773,680
Pfizer, Inc............................. 131,290 5,530,591
------------
14,304,271
------------
HEALTH CARE (HOSPITAL MANAGEMENT)--2.1%
Columbia/HCA Healthcare Corp............ 179,100 5,093,156
HOUSEHOLD PRODUCTS (NON-DURABLE)--2.4%
Clorox Co. (The)........................ 153,320 5,634,510
MANUFACTURING (DIVERSIFIED)--4.9%
Corning, Inc............................ 59,230 11,697,925
NATURAL GAS--1.9%
El Paso Energy Corp..................... 107,960 4,588,300
OIL & GAS (DRILLING & EQUIPMENT)--5.3%
Diamond Offshore Drilling, Inc.......... 58,770 2,369,166
Halliburton Co.......................... 230,170 10,170,637
------------
12,539,803
------------
</TABLE>
See Notes to Financial Statements 15
<PAGE>
Phoenix-Seneca Growth Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
PAPER & FOREST PRODUCTS--2.6%
Champion International Corp............. 93,000 $ 6,114,750
RETAIL (BUILDING SUPPLIES)--3.7%
Lowe's Cos., Inc........................ 178,240 8,822,880
RETAIL (GENERAL MERCHANDISE)--3.1%
Wal-Mart Stores, Inc.................... 134,820 7,465,657
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--3.1%
Nextel Communications, Inc.
Class A(b).............................. 68,550 7,501,941
--------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $165,416,142) 204,532,918
--------------------------------------------------------------------
FOREIGN COMMON STOCKS--11.8%
COMMUNICATIONS EQUIPMENT--7.6%
Nokia Oyj Sponsored ADR (Finland)....... 166,160 9,450,350
Nortel Networks Corp. (Canada).......... 76,580 8,672,685
------------
18,123,035
------------
ELECTRONICS (SEMICONDUCTORS)--4.2%
STMicroelectronics N.V. (Netherlands)... 52,230 9,907,378
--------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $12,717,055) 28,030,413
--------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--97.6%
(IDENTIFIED COST $178,133,197) 232,563,331
--------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------ -----------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--11.2%
COMMERCIAL PAPER--11.2%
Albertson's, Inc. 5.95%,
5/1/00.......................... A-1 $3,305 $ 3,305,000
Pitney Bowes Credit Corp. 6.05%,
5/1/00.......................... A-1+ 7,210 7,210,000
SBC Communications, Inc. 6%,
5/2/00.......................... A-1+ 4,395 4,394,267
Lexington Parker Capital Co. LLC
6.05%, 5/3/00................... A-1+ 7,000 6,997,647
Gannett Co., Inc. 6%, 5/4/00.... A-1+ 2,225 2,223,888
Coca-Cola Co. 6%, 5/10/00....... A-1 2,140 2,136,790
Special Purpose Accounts
Receivable Cooperative Corp.
6.10%, 5/31/00.................. A-1+ 385 383,126
-----------
26,650,718
-----------
-------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $26,650,635) 26,650,718
-------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--108.8%
(IDENTIFIED COST $204,783,832) 259,214,049(a)
Cash and receivables, less liabilities--(8.8%) (20,886,617)
-------------
NET ASSETS--100.0% $ 238,327,432
=============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $61,955,414 and gross
depreciation of $7,791,197 for federal income tax purposes. At April 30,
2000, the aggregate cost of securities for federal income tax purposes was
$205,049,832.
(b) Non-income producing.
16 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Growth Fund
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $204,783,832) $ 259,214,049
Cash 6,740
Receivables
Investment securities sold 2,246,071
Dividends and interest 133,976
Fund shares sold 30,193
Prepaid expenses 2,707
--------------
Total assets 261,633,736
--------------
LIABILITIES
Payables
Investment securities purchased 22,842,711
Fund shares repurchased 128,050
Investment advisory fee 138,364
Distribution fee 51,521
Transfer agent fee 44,410
Financial agent fee 19,653
Trustees' fee 12,559
Accrued expenses 69,036
--------------
Total liabilities 23,306,304
--------------
NET ASSETS $ 238,327,432
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest 159,999,268
Accumulated net realized gain 23,897,947
Net unrealized appreciation 54,430,217
--------------
NET ASSETS $ 238,327,432
==============
CLASS A
Shares of beneficial interest outstanding, $0.0001
par value, unlimited authorization
(Net Assets $234,984,786) 23,994,234
Net asset value per share $9.79
Offering price per share $9.79/(1-5.75%) $10.39
CLASS B
Shares of beneficial interest outstanding, $0.0001
par value, unlimited authorization
(Net Assets $3,342,646) 360,643
Net asset value and offering price per share $9.27
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 1,768,478
Interest 371,646
Foreign taxes withheld (5,819)
--------------
Total investment income 2,134,305
--------------
EXPENSES
Investment advisory fee 1,581,392
Distribution fee, Class A 557,049
Distribution fee, Class B 30,935
Financial agent fee 217,453
Transfer agent 263,837
Printing 38,050
Professional 27,958
Trustees 24,631
Registration 22,795
Custodian 17,492
Miscellaneous 12,343
--------------
Total expenses 2,793,935
--------------
NET INVESTMENT LOSS (659,630)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 47,864,059
Net change in unrealized appreciation (depreciation) on
investments 9,843,515
--------------
NET GAIN ON INVESTMENTS 57,707,574
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 57,047,944
==============
</TABLE>
See Notes to Financial Statements 17
<PAGE>
Phoenix-Seneca 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) $ (659,630) $ (414,880)
Net realized gain (loss) 47,864,059 8,800,896
Net change in unrealized appreciation
(depreciation) 9,843,515 22,526,413
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 57,047,944 30,912,429
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A (30,911,648) (14,338,287)
Net realized gains, Class B (444,344) (184,555)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (31,355,992) (14,522,842)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (526,390
and 776,243 shares, respectively) 5,149,295 6,205,793
Net asset value of shares issued from
reinvestment of distributions
(2,479,898 and 1,318,749 shares,
respectively) 23,274,864 10,444,800
Cost of shares repurchased (2,156,498
and 3,121,846 shares, respectively) (20,610,990) (25,370,488)
------------ ------------
Total 7,813,169 (8,719,895)
------------ ------------
CLASS B
Proceeds from sales of shares (100,517
and 113,886 shares, respectively) 923,422 896,049
Net asset value of shares issued from
reinvestment of distributions
(46,105 and 20,248 shares,
respectively) 412,196 154,289
Cost of shares repurchased (105,845
and 77,292 shares, respectively) (979,088) (601,028)
------------ ------------
Total 356,530 449,310
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS 8,169,699 (8,270,585)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS 33,861,651 8,119,002
NET ASSETS
Beginning of period 204,465,781 196,346,779
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$0 AND $0, RESPECTIVELY] $238,327,432 $204,465,781
============ ============
</TABLE>
18 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca 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 $ 8.72 $ 8.04 $ 6.89 $ 8.81 $ 7.40
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(2) (0.03) (0.02) (0.04) (0.03) (0.04)
Net realized and unrealized gain
(loss) 2.46 1.33 2.82 (0.90) 2.34
------- ------------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 2.43 1.31 2.78 (0.93) 2.30
------- ------------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- -- --
Dividends from net realized gains (1.36) (0.63) (1.63) (0.94) (0.89)
In excess of net realized gains -- -- -- (0.05) --
------- ------------- --------- --------- ---------
TOTAL DISTRIBUTIONS (1.36) (0.63) (1.63) (0.99) (0.89)
------- ------------- --------- --------- ---------
Change in net asset value 1.07 0.68 1.15 (1.92) 1.41
------- ------------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 9.79 $ 8.72 $ 8.04 $ 6.89 $ 8.81
======= ============= ========= ========= =========
Total return(1) 28.97 % 17.08 % 44.66 % (12.19)% 32.86 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $234,985 $201,789 $194,296 $163,396 $213,600
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.23 % 1.24 %(3) 1.18 % 1.23 % 1.25 %
Net investment income (loss) (0.28)% (0.21)% (0.55)% (0.39)% (0.53)%
Portfolio turnover 124 % 143 % 371 % 412 % 302 %
</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 $ 8.37 $ 7.80 $ 6.77 $ 8.73 $ 7.39
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(2) (0.09) (0.08) (0.10) (0.09) (0.10)
Net realized and unrealized gain
(loss) 2.35 1.28 2.76 (0.88) 2.33
------- ------------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 2.26 1.20 2.66 (0.97) 2.23
------- ------------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- -- --
Dividends from net realized gains (1.36) (0.63) (1.63) (0.94) (0.89)
In excess of net realized gains -- -- -- (0.05) --
------- ------------- --------- --------- ---------
TOTAL DISTRIBUTIONS (1.36) (0.63) (1.63) (0.99) (0.89)
------- ------------- --------- --------- ---------
Change in net asset value 0.90 0.57 1.03 (1.96) 1.34
------- ------------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 9.27 $ 8.37 $ 7.80 $ 6.77 $ 8.73
======= ============= ========= ========= =========
Total return(1) 28.11 % 16.18 % 43.58 % (12.79)% 31.92 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $ 3,343 $ 2,677 $ 2,051 $ 1,666 $ 1,348
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.98 % 1.99 %(3) 1.93 % 1.98 % 2.06 %
Net investment income (loss) (1.03)% (0.97)% (1.30)% (1.15)% (1.18)%
Portfolio turnover 124 % 143 % 371 % 412 % 302 %
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Computed using average shares outstanding.
(3) For the year ended April 30, 1999, the ratio of operating expenses to
average net assets excludes the effect of expense offsets for custodian
fees; if expense offsets were included, the ratio would not significantly
differ.
See Notes to Financial Statements 19
<PAGE>
PHOENIX-SENECA STRATEGIC THEME FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM, GAIL SENECA, PH.D., RICK
LITTLE, CFA AND RON JACKS, CFA
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Fund seeks long-term capital appreciation. The Fund may invest in smaller
capitalization stocks, and investors should note that small-company investing
involves added risks, including greater price volatility, less liquidity and
increased competitive threat.
Q: HOW DID THE FUND PERFORM OVER THE LAST FISCAL YEAR?
A: For the 12 months ended April 30, 2000, Class A shares rose 53.26%, Class B
shares gained 52.03% and Class C shares were up 52.09%. These returns far
surpassed the 10.34% one-year return for the S&P 500 Index.(1) All performance
figures assume reinvestment of distributions and exclude the effect of sales
charges.
Q: WHAT FACTORS CONTRIBUTED TO THE FUND'S STRONG PERFORMANCE?
A: Seneca's emphasis on companies with strong earnings growth and solid
fundamentals led to our above-market results. Good stock selection within the
technology sector was the primary contributor to performance. Technology-based
companies like Corning, Nokia and Teradyne all produced excellent results. Our
overweighting in semiconductor stocks such as Applied Materials was one of our
strongest themes.
Q: WHAT IS YOUR CURRENT OUTLOOK FOR THE MARKETS?
A: The near ubiquitous media coverage of the stock market that we have witnessed
recently has created, in our view, a perilous "bubble" in many tech and biotech
stocks. The mania, however, does not invalidate the extraordinary business
revolution now unfolding. The last 10 years have delivered the most robust and
most consistent profit growth ever in U.S. history. Analysts expect further
earnings growth this year and next. Productivity has soared, even as inflation
has plateaued at a low level.
Corporations operate far more efficiently than they have in the past and
continue to reinvent themselves in response to tough global competition and the
challenges of newer and faster technology. The American work force is undergoing
a similar transformation toward job mobility, constant retraining and
profit-linked compensation arrangements. The climate for investing in the U.S.
has benefited further from the amazing reversal in the federal budget from
deficit to surplus. These important structural changes bode well for growth and
investment prosperity. The long-term economic and market outlook is excellent,
in our opinion.
In the short term, however, the froth and leverage in the market poses risks
of furious price swings and uncontrollable death spirals of the most
ridiculously priced stocks. With the market vulnerable to ongoing Federal
Reserve tightening, no particular catalyst is required to set off a panic.
We believe the combination of an unfriendly Federal Reserve and massive
overvaluation in some sectors could potentially result in serious losses for
(1) THE S&P 500 INDEX MEASURES STOCK MARKET PERFORMANCE. PERFORMANCE IS
CALCULATED ON A TOTAL-RETURN BASIS WITH DIVIDENDS REINVESTED, AS REPORTED BY
FRANK RUSSELL COMPANY. THE INDEX IS UNMANAGED AND NOT AVAILABLE FOR DIRECT
INVESTMENT.
20
<PAGE>
PHOENIX-SENECA STRATEGIC THEME FUND (CONTINUED)
many investors this year. A severe correction in the most hyped and least
credible stocks need not infect good companies if Federal Reserve policy is
careful and deliberate. Should the Federal Reserve successfully engineer a soft
landing for the economy rather than a crash landing, damage in the stock market
will be contained. We believe this is the most likely outcome. An overall market
advance should be achievable this year.
There will, however, be considerable pain as the mania unfolds. Seneca
believes the key to good performance will be sensible stock selection and
careful portfolio construction. We will continue to thoroughly research
companies, include them in portfolios in prudent proportions and monitor them
diligently.
MAY 17, 2000
21
<PAGE>
Phoenix-Seneca Strategic Theme Fund
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 4/30/00
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR TO 4/30/00 DATE
------ ----------- -----------
<S> <C> <C> <C>
Class A Shares at NAV(2) 53.26% 32.99% 10/16/95
Class A Shares at POP(3) 44.45 31.27 10/16/95
Class B Shares at NAV(2) 52.03 32.01 10/16/95
Class B Shares with CDSC(4) 48.03 31.85 10/16/95
Class C Shares at NAV(2) 52.09 41.20 11/3/97
Class C Shares with CDSC(4) 52.09 41.20 11/3/97
S&P 500 Index(7) 10.34 Note 5 Note 5
</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 24.47% for Class A and Class B (since 10/16/95) and
20.95% for Class C (since 11/3/97).
(6) This chart illustrates POP returns on Class A and Class B Shares since
10/16/95. Returns on Class C Shares will vary due to differing sales
charges.
(7) 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 STRATEGIC THEME PHOENIX STRATEGIC THEME S&P
FUND CLASS A(6) FUND CLASS B(6) 500
INDEX(7)
<S> <C> <C> <C>
10/95 $9,425 $10,000 $10,000
96 $11,677 $12,341 $11,356
97 $11,376 $11,933 $14,219
98 $15,497 $16,131 $20,086
99 $22,457 $23,225 $24,468
00 $34,417 $35,308 $26,999
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
10/16/95 (inception of the Fund) in Class A and Class B shares. The total return
for Class A shares reflects the maximum sales charge of 5.75% on the initial
investment. The total return for Class B shares reflects the CDSC charges which
decline from 5% to 0% over a five year period. 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 60%
Energy 14
Consumer Staples 6
Financials 5
Capital Goods 4
Communication Services 4
Health-Care 4
Other 3
</TABLE>
22
<PAGE>
Phoenix-Seneca Strategic Theme Fund
TEN LARGEST EQUITY HOLDINGS AT APRIL 30, 2000 (AS A PERCENTAGE OF TOTAL NET
ASSETS)
<TABLE>
<C> <S> <C>
1. EchoStar Communications Corp. 5.2%
PROVIDER OF DBS (DIRECT BROADCAST SATELLITES) SERVICES AND PRODUCTS
2. Nokia Oyj Sponsored ADR (Finland) 4.7%
LEADING TELECOMMUNICATIONS EQUIPMENT PROVIDER
3. Applied Materials, Inc. 4.6%
SEMICONDUCTOR EQUIPMENT AND MATERIAL SUPPLIER
4. Fairchild Semiconductor International Class A 4.6%
SEMICONDUCTOR AND INTEGRATED CIRCUIT MANUFACTURER
5. Teradyne, Inc. 4.5%
ELECTRONIC SYSTEM AND SOFTWARE MANUFACTURER
6. Corning, Inc. 4.4%
SPECIALTY TECHNOLOGY-BASED MANUFACTURER
7. Intel Corp. 4.3%
SEMICONDUCTOR CHIPS AND MEMORY CIRCUIT MANUFACTURER
8. Sun Microsystems, Inc. 4.1%
PROVIDER OF SERVICES AND SUPPORT SOLUTIONS FOR NETWORK COMPUTING
ENVIRONMENTS
9. LSI Logic Corp. 4.0%
MANUFACTURER OF HIGH-PERFORMANCE CIRCUITS
10. Nortel Networks Corp. (Canada) 4.0%
GLOBAL SUPPLIER OF TELEPHONE NETWORK SOLUTIONS AND SERVICES
</TABLE>
INVESTMENTS AT APRIL 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMON STOCKS--90.5%
BIOTECHNOLOGY--3.6%
MedImmune, Inc.(b)...................... 178,130 $ 28,489,667
BROADCASTING (TELEVISION, RADIO & CABLE)--6.2%
AMFM, Inc.(b)........................... 120,510 7,998,851
EchoStar Communications Corp.(b)........ 642,400 40,912,850
------------
48,911,701
------------
COMMUNICATIONS EQUIPMENT--6.8%
General Motors Corp. Class H(b)......... 233,500 22,488,969
Metricom, Inc.(b)....................... 157,670 4,424,614
Motorola, Inc........................... 218,960 26,069,925
------------
52,983,508
------------
COMPUTERS (HARDWARE)--10.5%
Alteon Websystems, Inc.(b).............. 188,220 12,798,960
Copper Mountain Networks, Inc.(b)....... 221,670 18,481,736
Extreme Networks, Inc.(b)............... 334,660 19,284,782
Sun Microsystems, Inc.(b)............... 346,010 31,811,294
------------
82,376,772
------------
COMPUTERS (SOFTWARE & SERVICES)--3.5%
Liberate Technologies, Inc.(b).......... 167,000 6,533,875
Mercury Interactive Corp.(b)............ 205,000 18,450,000
Vignette Corp.(b)....................... 53,730 2,589,114
------------
27,572,989
------------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
ELECTRONICS (SEMICONDUCTORS)--14.9%
Analog Devices, Inc.(b)................. 196,000 $ 15,055,250
Fairchild Semiconductor Corp. Class
A(b).................................... 760,900 36,142,750
Intel Corp.............................. 266,540 33,800,604
LSI Logic Corp.(b)...................... 500,770 31,298,125
------------
116,296,729
------------
EQUIPMENT (SEMICONDUCTORS)--15.4%
Applied Materials, Inc.(b).............. 356,650 36,311,428
KLA-Tencor Corp.(b)..................... 376,440 28,185,945
Lam Research Corp.(b)................... 450,000 20,643,750
Teradyne, Inc.(b)....................... 319,200 35,112,000
------------
120,253,123
------------
FINANCIAL (DIVERSIFIED)--2.6%
Citigroup, Inc.......................... 142,650 8,478,759
Morgan Stanley Dean Witter & Co......... 150,600 11,558,550
------------
20,037,309
------------
INSURANCE (PROPERTY-CASUALTY)--2.4%
MGIC Investment Corp.................... 399,240 19,088,663
MANUFACTURING (DIVERSIFIED)--4.4%
Corning, Inc............................ 173,890 34,343,275
OIL & GAS (DRILLING & EQUIPMENT)--14.1%
Grant Prideco, Inc...................... 387,970 7,468,423
Halliburton Co.......................... 627,800 27,740,913
Nabors Industries, Inc.(b).............. 775,750 30,593,641
</TABLE>
See Notes to Financial Statements 23
<PAGE>
Phoenix-Seneca Strategic Theme Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
OIL & GAS (DRILLING & EQUIPMENT)--CONTINUED
Rowan Companies, Inc.(b)................ 890,000 $ 24,864,375
Weatherford International, Inc.(b)...... 487,970 19,823,781
------------
110,491,133
------------
PAPER & FOREST PRODUCTS--0.6%
Smurfit-Stone Container Corp.(b)........ 329,350 5,022,588
SERVICES (COMMERCIAL & CONSUMER)--1.1%
Crown Castle International Corp.(b)..... 223,200 8,565,300
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--4.4%
Nextel Communications, Inc. Class
A(b).................................... 196,100 21,460,694
Nextel Partners, Inc. Class A(b)........ 41,100 901,631
Sprint Corp. (PCS Group)(b)............. 216,000 11,880,000
------------
34,242,325
------------
--------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $523,601,425) 708,675,082
--------------------------------------------------------------------
FOREIGN COMMON STOCKS--8.7%
COMMUNICATIONS EQUIPMENT--8.7%
Nokia Oyj Sponsored ADR (Finland)....... 651,600 37,059,750
Nortel Networks Corp. (Canada).......... 274,630 31,101,847
------------
68,161,597
------------
--------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $45,784,932) 68,161,597
--------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--99.2%
(IDENTIFIED COST $569,386,357) 776,836,679
--------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------- ------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--4.5%
COMMERCIAL PAPER--4.5%
Koch Industries, Inc. 6.04%,
5/1/00........................ A-1+ $16,710 $ 16,710,000
Marsh USA 6%, 5/8/00.......... A-1+ 4,245 4,240,047
Schering Corp. 6%, 5/11/00.... A-1+ 3,500 3,494,167
American Home Products Corp.
6.02%, 5/12/00................ A-1 4,765 4,756,235
Lexington Parker Capital Co.
LLC 6.08%, 5/15/00............ A-1 2,000 1,993,031
Special Purpose Accounts
Receivable Cooperative Corp.
6.05%, 5/17/00................ A-1 1,000 997,436
Associates Corporation of
North America 6.01%,
5/25/00....................... A-1 3,500 3,485,977
------------
35,676,893
------------
-------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $35,676,767) 35,676,893
-------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--103.7%
(IDENTIFIED COST $605,063,124) 812,513,572(a)
Cash and receivables, less liabilities--(3.7%) (29,269,074)
------------
NET ASSETS--100.0% $783,244,498
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $258,734,158 and gross
depreciation of $53,908,947 for federal income tax purposes. At April 30,
2000, the aggregate cost of securities for federal income tax purposes was
$607,688,361.
(b) Non-income producing.
24 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Strategic Theme Fund
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $605,063,124) $ 812,513,572
Cash 2,396
Receivables
Fund shares sold 580,987
Dividends and interest 22,824
Prepaid expenses 6,573
--------------
Total assets 813,126,352
--------------
LIABILITIES
Payables
Investment securities purchased 27,766,813
Fund shares repurchased 1,010,400
Investment advisory fee 465,573
Distribution fee 251,502
Transfer agent fee 181,834
Financial agent fee 31,436
Trustees' fee 16,807
Accrued expenses 157,489
--------------
Total liabilities 29,881,854
--------------
NET ASSETS $ 783,244,498
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 514,706,221
Accumulated net realized gain 61,087,829
Net unrealized appreciation 207,450,448
--------------
NET ASSETS $ 783,244,498
==============
CLASS A
Shares of beneficial interest outstanding,
$0.0001 par value, unlimited authorization
(Net Assets $620,919,028) 27,449,595
Net asset value per share $22.62
Offering price per share $22.62/(1-5.75%) $24.00
CLASS B
Shares of beneficial interest outstanding,
$0.0001 par value, unlimited authorization
(Net Assets $157,169,172) 7,241,855
Net asset value per share and offering per share $21.70
CLASS C
Shares of beneficial interest outstanding,
$0.0001 par value, unlimited authorization
(Net Assets $5,156,298) 237,541
Net asset value per share and offering per share $21.71
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 1,003,622
Interest 684,800
Foreign taxes withheld (23,652)
--------------
Total investment income 1,664,770
--------------
EXPENSES
Investment advisory fee 2,319,786
Distribution fee, Class A 501,517
Distribution fee, Class B 1,066,872
Distribution fee, Class C 20,108
Financial agent fee 234,601
Transfer agent fee 486,982
Printing 50,111
Registration 37,381
Professional 31,613
Trustees 29,138
Custodian 20,115
Miscellaneous 9,051
--------------
Total expenses 4,807,275
Custodian fees paid indirectly (3,701)
--------------
Net expenses 4,803,574
--------------
NET INVESTMENT LOSS (3,138,804)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 95,521,350
Net change in unrealized appreciation (depreciation) on
investments (58,060,755)
--------------
NET GAIN ON INVESTMENTS 37,460,595
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 34,321,791
==============
</TABLE>
See Notes to Financial Statements 25
<PAGE>
Phoenix-Seneca Strategic Theme 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) $ (3,138,804) $ (1,592,337)
Net realized gain (loss) 95,521,350 18,354,872
Net change in unrealized appreciation
(depreciation) (58,060,755) 38,225,117
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 34,321,791 54,987,652
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A (26,637,803) (6,923,924)
Net realized gains, Class B (20,732,140) (5,772,230)
Net realized gains, Class C (373,094) (28,108)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (47,743,037) (12,724,262)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(4,564,985 and 3,919,529 shares,
respectively) 93,227,507 64,808,215
Net asset value of shares issued from
Phoenix-Seneca Mid Cap Fund merger
(19,654,306 and 0 shares,
respectively) (See Note 6) 510,230,512 --
Net asset value of shares issued from
reinvestment of distributions
(1,381,459 and 419,976 shares,
respectively) 25,705,072 6,560,032
Cost of shares repurchased (4,070,380
and 4,982,395 shares, respectively) (83,306,119) (76,814,571)
------------ ------------
Total 545,856,972 (5,446,324)
------------ ------------
CLASS B
Proceeds from sales of shares (985,214
and 819,204 shares, respectively) 19,346,429 13,391,640
Net asset value of shares issued from
Phoenix-Seneca Mid Cap Fund merger
(1,280,671 and 0 shares,
respectively) (See Note 6) 31,929,692 --
Net asset value of shares issued from
reinvestment of distributions
(1,071,260 and 329,762 shares,
respectively) 19,241,688 5,028,874
Cost of shares repurchased (868,154
and 1,286,009 shares, respectively) (17,020,407) (18,585,029)
------------ ------------
Total 53,497,402 (164,515)
------------ ------------
CLASS C
Proceeds from sales of shares (196,187
and 36,724 shares, respectively) 4,015,847 589,799
Net asset value of shares issued from
reinvestment of distributions
(18,431 and 1,354 shares,
respectively) 332,457 20,648
Cost of shares repurchased (15,485 and
19,484 shares, respectively) (287,819) (266,095)
------------ ------------
Total 4,060,485 344,352
------------ ------------
CLASS M
Cost of shares repurchased (0 and
16,288 shares, respectively) -- (223,551)
------------ ------------
Total -- (223,551)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS 603,414,859 (5,490,038)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS 589,993,613 36,773,352
NET ASSETS
Beginning of period 193,250,885 156,477,533
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$0 AND $0, RESPECTIVELY] $783,244,498 $193,250,885
============ ============
</TABLE>
26 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Strategic Theme Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------
FROM
YEAR ENDED APRIL 30 INCEPTION
--------------------------------------------- 10/16/95 TO
2000 1999 1998 1997 4/30/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 18.22 $ 13.70 $ 12.03 $ 12.37 $ 10.00
INCOME FROM INVESTMENT OPERATIONS(6)
Net investment income (loss)(5) (0.16) (0.11) (0.04) 0.06 0.00(1)
Net realized and unrealized gain (loss) 8.69 6.03 4.03 (0.38) 2.39
-------- -------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 8.53 5.92 3.99 (0.32) 2.39
-------- -------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- (0.01) --
Dividends from net realized gains (4.13) (1.40) (2.29) -- --
In excess of net investment income -- -- (0.03) -- --
In excess of net realized gains -- -- -- (0.01) --
Tax return of capital -- -- -- -- (0.02)
-------- -------- ------- ------- -------
TOTAL DISTRIBUTIONS (4.13) (1.40) (2.32) (0.02) (0.02)
-------- -------- ------- ------- -------
Change in net asset value 4.40 4.52 1.67 (0.34) 2.37
-------- -------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 22.62 $ 18.22 $ 13.70 $ 12.03 $ 12.37
======== ======== ======= ======= =======
Total return(2) 53.26% 44.91% 36.22% (2.57)% 23.89%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $620,919 $107,871 $89,884 $77,827 $33,393
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.29%(7) 1.38%(7) 1.33% 1.40% 1.40%(3)
Net investment income (loss) (0.77)% (0.72)% (0.26)% 0.49% (0.09)%(3)
Portfolio turnover 157% 205% 618% 532% 175%(4)
</TABLE>
(1) Includes reimbursement of operating expenses by investment adviser of
$0.04.
(2) Maximum sales charge is not reflected in total return calculation.
(3) Annualized.
(4) Not annualized.
(5) Computed using average shares outstanding.
(6) 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.
(7) The ratio of operating expenses to average net assets excludes the effect
of expense offsets for custodian fees; if expense offsets were included,
the ratio would not significantly differ.
See Notes to Financial Statements 27
<PAGE>
Phoenix-Seneca Strategic Theme Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------------------
FROM
YEAR ENDED APRIL 30 INCEPTION
-------------------------------------------- 10/16/95 TO
2000 1999 1998 1997 4/30/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.75 $ 13.46 $ 11.91 $ 12.33 $ 10.00
INCOME FROM INVESTMENT OPERATIONS(6)
Net investment income (loss)(5) (0.28) (0.22) (0.14) (0.03) (0.06)(1)
Net realized and unrealized gain (loss) 8.36 5.91 3.98 (0.38) 2.40
-------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 8.08 5.69 3.84(5) (0.41) 2.34
-------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- -- --
Dividends from net realized gains (4.13) (1.40) (2.29) -- --
In excess of net investment income -- -- -- -- --
In excess of net realized gains -- -- -- (0.01) --
Tax return of capital -- -- -- -- (0.01)
-------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS (4.13) (1.40) (2.29) (0.01) (0.01)
-------- ------- ------- ------- -------
Change in net asset value 3.95 4.29 1.55 (0.42) 2.33
-------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 21.70 $ 17.75 $ 13.46 $ 11.91 $ 12.33
======== ======= ======= ======= =======
Total return(2) 52.03% 43.98% 35.18% (3.31)% 23.41%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $157,169 $84,698 $66,107 $49,843 $11,920
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.04%(7) 2.13%(7) 2.08% 2.15% 2.16%(3)
Net investment income (loss) (1.47)% (1.48)% (1.02)% (0.23)% (1.06)%(3)
Portfolio turnover 157% 205% 618% 532% 175%(4)
</TABLE>
(1) Includes reimbursement of operating expenses by investment adviser of
$0.04.
(2) Maximum sales charge is not reflected in total return calculation.
(3) Annualized.
(4) Not annualized.
(5) Computed using average shares outstanding.
(6) 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.
(7) The ratio of operating expenses to average net assets excludes the effect
of expense offsets for custodian fees; if expense offsets were included,
the ratio would not significantly differ.
28 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Strategic Theme Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
-------------------------------------
FROM
YEAR ENDED APRIL 30 INCEPTION
------------------- 11/3/97 TO
2000 1999 4/30/98
<S> <C> <C> <C>
Net asset value, beginning of period $17.75 $13.47 $14.93
INCOME FROM INVESTMENT OPERATIONS(5)
Net investment income (loss)(4) (0.29) (0.22) (0.05)
Net realized and unrealized gain (loss) 8.38 5.90 0.88
------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 8.09 5.68 0.83
------ ------ ------
LESS DISTRIBUTIONS
Dividends from net realized gains (4.13) (1.40) (2.29)
------ ------ ------
TOTAL DISTRIBUTIONS (4.13) (1.40) (2.29)
------ ------ ------
Change in net asset value 3.96 4.28 (1.46)
------ ------ ------
NET ASSET VALUE, END OF PERIOD $21.71 $17.75 $13.47
====== ====== ======
Total return(1) 52.09% 43.87% 7.92%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $5,156 $682 $267
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.04%(6) 2.13%(6) 2.08%(2)
Net investment income (loss) (1.53)% (1.47)% (0.87)%(2)
Portfolio turnover 157% 205% 618%(3)
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized.
(3) Not annualized.
(4) Computed using average shares outstanding.
(5) 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.
(6) The ratio of operating expenses to average net assets excludes the effect
of expense offsets for custodian fees; if expense offsets were included,
the ratio would not significantly differ.
See Notes to Financial Statements 29
<PAGE>
PHOENIX STRATEGIC EQUITY SERIES FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2000
1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix Strategic Equity Series Fund (the "Trust") 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 Fund has distinct investment objectives. The Small Cap Fund 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 Growth Fund (formerly Equity
Opportunities) seeks to achieve long-term growth of capital from investment in a
diversified group of stocks or securities convertible into stocks. The Strategic
Theme Fund 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.
Each Fund offers both Class A and Class B shares. The Strategic Theme Fund
also offers Class C shares. Class M shares have been closed. 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 each Fund are borne pro rata by the
holders of all 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 Trust 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. 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. Realized gains and losses are determined on the identified cost basis.
C. INCOME TAXES:
Each Fund is treated as a separate taxable entity. It is the policy of each
Fund in the Trust 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, each 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 are recorded by each Fund 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 Trust 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. EXPENSES:
Expenses incurred by the Trust with respect to any two or more Funds are
allocated in proportion to the net assets of each Fund, except where allocation
of direct expense to each Fund or an alternative allocation method can be more
fairly made.
30
<PAGE>
PHOENIX STRATEGIC EQUITY SERIES FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2000 (CONTINUED)
G. OPTIONS:
The Trust 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 Trust 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 Trust may purchase options which are included in the Trust'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 Trust, 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 based upon the
following annual rates as a percentage of the average daily net assets of each
Fund.
<TABLE>
<CAPTION>
1st $1 $1-2 $2+
Fund Billion Billion Billion
---- -------- -------- --------
<S> <C> <C> <C>
Small Cap Fund..................... 0.75% 0.70% 0.65%
Growth Fund........................ 0.70% 0.65% 0.60%
Strategic Theme Fund............... 0.75% 0.70% 0.65%
</TABLE>
Seneca Capital Management LLC ("Seneca") serves as subadviser to PIC for the
Growth Fund and Strategic Theme Fund. For its services, Seneca is paid a fee by
PIC ranging from 0.35% to 0.20% of the average daily net assets of the Equity
Opportunities Fund. A majority of the equity interests of Seneca are owned by
Phoenix Investment Partners Ltd. ("PXP"), an indirect majority-owned subsidiary
of PHL.
Roger Engemann & Associates, Inc. ("REA") serves as subadviser to PIC for the
Small Cap Fund. For its services, REA is paid a fee by the Adviser ranging from
0.375% to 0.20% of the average daily net assets of the Small Cap Fund. REA is a
wholly owned subsidiary of Pasadena Capital Corporation which in turn is a
wholly owned subsidiary of PXP.
As Distributor of the Trust's shares, Phoenix Equity Planning Corp. ("PEPCO"),
an indirect majority-owned subsidiary of PHL, has advised the Trust that it
retained net selling commissions of $71,696 for Class A shares and deferred
sales charges of $479,045 for Class B shares and $1,947 for Class C shares, for
the year ended April 30, 2000. In addition, each Series pays PEPCO a
distribution fee at an annual rate of 0.25% for Class A shares, 1.00% for
Class B shares, 1.00% for Class C shares and, prior to closing, 0.50% for
Class M shares applied to the average daily net assets of each 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 Trust that of the total
amount expensed for the year ended April 30, 2000, $2,074,317 was earned by the
Distributor, $1,505,192 was earned by unaffiliated participants and $177,556 was
paid to W.S. Griffith, an indirect subsidiary of PHL.
As Financial Agent of the Trust, 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 Trust. Certain minimum fees
and fee waivers may apply.
PEPCO serves as the Trust's Transfer Agent with State Street Bank and Trust
Company as sub-transfer agent. For the year ended April 30, 2000, transfer agent
fees were $1,359,659 of which PEPCO retained $558,243 which is net of the fees
paid to State Street.
At April 30, 2000, PHL and its affiliates held shares of the Trust as follows:
<TABLE>
<CAPTION>
Aggregate
Net Asset
Shares Value
-------- ---------
<S> <C> <C>
Growth Fund--Class A..................... 191 $ 1,870
Growth Fund--Class B..................... 29,391 272,455
</TABLE>
31
<PAGE>
PHOENIX STRATEGIC EQUITY SERIES FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2000 (CONTINUED)
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities (excluding short-term securities and
options) for the year ended April 30, 2000, aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
Small Cap Fund................... $308,147,162 $371,665,784
Growth Fund...................... 271,466,234 294,791,414
Strategic Theme Fund............. 524,816,230 483,186,391
</TABLE>
There were no purchases or sales of long-term U.S. Government securities.
4. CAPITAL LOSS CARRYOVERS
For the fiscal year ended April 30, 2000, the Small Cap Fund had losses of
$23,761,798 deferred in the prior year which were utilized in the current year.
5. RECLASS OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, the Funds have recorded
reclassifications in the capital accounts. These reclassifications have no
impact on the net asset value of each of the Funds 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
Funds recorded the following reclassifications to increase (decrease) the
accounts listed below:
<TABLE>
<CAPTION>
Undistributed Accumulated
net investment net realized
income gain (loss)
-------------- ------------
<S> <C> <C> <C>
Small Cap Fund.......................... $4,279,400 $(4,279,400)
Growth Fund............................. 659,630 (659,630)
Strategic Theme Fund.................... 3,138,804 (3,138,804)
</TABLE>
6. OTHER
On March 10, 2000, the Phoenix-Seneca Strategic Theme Fund ("Strategic Theme")
acquired all of the net assets of the Phoenix-Seneca Mid Cap Fund ("Mid Cap")
pursuant to an Agreement and Plan of Reorganization approved by Mid Cap
shareholders on February 25, 2000. The acquisition was accomplished by a
tax-free exchange of 19,654,306 Class A shares of Strategic Theme and 1,280,671
Class B shares of Strategic Theme (valued at $510,230,512 and $31,929,692,
respectively) for 18,014,460 Class A shares of Mid Cap and 1,214,380 Class B
shares of Mid Cap outstanding on March 10, 2000. Mid Cap's net assets at that
date of $542,160,204, including $217,805,454 of unrealized appreciation or
depreciation were combined with those of Strategic Theme. The aggregate net
assets of Strategic Theme immediately after the merger were $902,270,416.
7. SUBSEQUENT EVENT
On May 12, 2000, the Phoenix-Seneca Equity Opportunities Fund (the "Acquiring
Fund") acquired the assets and liabilities of the Phoenix-Seneca Growth Fund
(the "Acquired Fund") pursuant to a plan of reorganization approved by its
shareholders on April 28, 2000. The acquisition was accomplished by a tax-free
exchange of shares of the Acquiring Fund in an amount equal to the outstanding
shares of the Acquired Fund. Effective May 12, 2000, the Acquiring Fund was
renamed the Phoenix-Seneca Growth Fund. For financial reporting purposes the
historical results of the Acquired Fund will survive.
TAX INFORMATION NOTICE (UNAUDITED)
For the fiscal year ended April 30, 2000, the following funds distributed
long-term capital gains dividends.
<TABLE>
<S> <C>
Growth Fund.............. $ 8,258,969
Strategic Theme Fund..... 18,808,485
</TABLE>
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.
32
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[LOGO]
To the Trustees and Shareholders of
Phoenix Strategic Equity Series Fund
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, 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-Engemann Small Cap Fund,
Phoenix-Seneca Growth Fund (formerly Phoenix-Seneca Equity Opportunities Fund),
and Phoenix-Seneca Strategic Theme Fund (constituting separate series of the
Phoenix Strategic Equity Series Fund, hereinafter referred to as the "Trust") at
April 30, 2000, the results of their operations for the year then ended, the
changes in their 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 Trust'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
33
<PAGE>
PHOENIX STRATEGIC EQUITY SERIES 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
J. Roger Engemann, Senior Vice President
Gail P. Seneca, Senior Vice President
Steven L. Colton, Vice President
Robert S. Driessen, Vice President
Ron K. Jacks, Vice President
Richard D. Little, Vice President
James E. Mair, Vice President
Michael Kearney, Vice President
John S. Tilson, 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 744 (6/00)
