As filed with the Securities and Exchange Commission on January 4, 2000
Registration No. 333-87215
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------
FORM N-14
REGISTRATION STATEMENT
Under the
SECURITIES ACT OF 1933
Pre-Effective Amendment No. 2 [X]
Post-Effective Amendment No. [ ]
Phoenix Strategic Equity Series Fund
(Exact Name of Registrant as Specified in Declaration of Trust)
--------------
101 Munson Street, Greenfield, Massachusetts 01301
(Address of Principal Executive Offices) (Zip Code)
c/o Phoenix Equity Planning Corporation--Shareholder Services
(800) 243-1574
(Registrant's Telephone Number, including Area Code)
--------------
Pamela S. Sinofsky
Assistant Vice President and Assistant Counsel
Phoenix Investment Partners, Ltd.
56 Prospect Street
Hartford, Connecticut 06115-0479
(Name and Address of Agent for Service)
Copies of Communications to:
Geoffrey R.T. Kenyon, Esq.
Goodwin, Procter & Hoar LLP
Exchange Place
Boston, Massachusetts 02109-2881
--------------
Approximate Date of Proposed Public Offering:
As soon as practicable after the effective date of this Registration Statement.
--------------
Registrant is relying on Section 24(f) of the Investment Company Act of
1940, as amended, which permits registration of an indefinite number of shares
of beneficial interest, $0.0001 par value per share of the Registrant.
Accordingly, no filing fee is due in connection with this Registration
Statement.
The Registrant hereby amends this Registration Statement on such date or
dates as may be necessary to delay its effective date until the Registrant
shall file a further amendment which specifically states that this Registration
Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 9(a),
may determine.
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- --------------------------------------------------------------------------------
<PAGE>
PHOENIX STRATEGIC EQUITY SERIES FUND
CROSS REFERENCE SHEET
Pursuant to Rule 481(a)
Part A:
Information Required in Prospectus/Proxy Statement
<TABLE>
<CAPTION>
Caption or Location in
Form N-14 Item No. and Caption Prospectus/Proxy Statement
- ---------------------------------------------- ----------------------------------------------
<S> <C>
1. Beginning of Registration Statement and Cover Page; Cross Reference Sheet
Outside Front Cover Page of Prospectus
2. Beginning and Outside Back Cover Page of Table of Contents
Prospectus
3. Fee Table, Synopsis Information and Risk Synopsis; Principal Risk Factors; Comparison
Factors of Investment Objectives and Policies
4. Information about the Transaction Synopsis; The Proposed Reorganization;
Comparative Information on Shareholder
Rights; Exhibit A (Agreement and Plan of
Reorganization)
5. Information about the Registrant Cover Page; Synopsis; Principal Risk Factors;
Comparison of Investment Objectives and
Policies; The Proposed Reorganization;
Comparative Information on Distribution
Arrangements; Comparative Information on
Shareholder Services; Comparative
Information on Shareholder Rights;
Management and Other Service Providers;
Additional Information About The Funds;
Current Prospectus of Registrant
6. Information about the Company Being Synopsis; Comparison of Investment
Acquired Objectives and Policies; The Proposed
Reorganization; Comparative Information on
Distribution Arrangements; Comparative
Information on Shareholder Services;
Comparative Information on Shareholder
Rights; Additional Information About The
Funds; Prospectus of the Phoenix-Seneca Mid
Cap Fund dated March 30, 1999
7. Voting Information Synopsis; The Proposed Reorganization;
Comparative Information on Shareholder
Rights; Voting Information
8. Interest of Certain Persons and Experts The Proposed Reorganization
9. Additional Information Required for Not Appliable
Reoffering By Persons Deemed to be
Underwriters
</TABLE>
<PAGE>
Part B:
Information Required in Statement of Additional Information
<TABLE>
<CAPTION>
Caption or Location in
Form N-14 Item No. and Caption Prospectus/Proxy Statement
- ------------------------------------------------- -----------------------------------------------
<S> <C>
10. Cover Page Cover Page
11. Table of Contents Table of Contents
12. Additional Information about the Registrant Cover Page; Statement of Additional
Information of Registrant dated August 27,
1999
13. Additional Information about the Company Cover Page; Statement of Additional
Being Acquired Information of Phoenix Multi-Portfolio Fund
dated March 30, 1999
14. Financial Statements Annual Report of the Registrant for the year
ended April 30, 1999; Annual Report of
Phoenix Multi-Portfolio Fund for the year
ended November 30, 1998; Semiannual Report
of Phoenix Strategic Equity Series Fund for
the six-month period ended October 31, 1999;
Semiannual report of Phoenix Multi-Portfolio
Fund for the six-month period ended May 31,
1999; and Pro Forma Financial Statements
Part C:
Other Information
15. Indemnification Indemnification
16. Exhibits Exhibits
17. Undertakings Undertakings
</TABLE>
<PAGE>
Part A of the Registration Statement was previously filed with Pre-Effective
Amendment No. 1 to the Registrant's Registration Statement on Form N-14,
Registration No. 333-87215, (filed December 23, 1999) and is herein incorporated
by reference.
<PAGE>
PART B
<PAGE>
Each of the documents which is included as part of this Statement of Additional
Information, except for the Semiannual Report of Phoenix Strategic Equity Series
Fund for the six-month period, ended October 31, 1999, was previously filed with
Pre-Effective Amendment No. 1 to the Registrant's Registration Statement on Form
N-14, Registration No. 333-87215 (filed December 23, 1999) and is herein
incorporated by reference. The Semiannual Report of Phoenix Strategic Equity
Series Fund for the six-month period ended October 31, 1999, is included herein.
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
Acquisition of the Assets of
PHOENIX-SENECA MID CAP FUND
a series of
Phoenix Multi-Portfolio Fund
101 Munson Street
Greenfield, Massachusetts 01301
(800) 243-1574
By and in Exchange for Shares of
PHOENIX-SENECA STRATEGIC THEME FUND
a series of
Phoenix Strategic Equity Series Fund
101 Munson Street
Greenfield, Massachusetts 01301
(800) 243-1574
This Statement of Additional Information, relating specifically to the
proposed transfer of all or substantially all of the assets and all the
liabilities of the Phoenix-Seneca Mid Cap Fund, a series of Phoenix
Multi-Portfolio Fund, to the Phoenix-Seneca Strategic Theme Fund, a portfolio
series of Phoenix Strategic Equity Series Fund, in exchange for shares of the
corresponding class of the Strategic Theme Fund, consists of this cover page and
the following described documents, each of which is attached hereto and
incorporated by reference herein:
(1) the Statement of Additional Information of Phoenix Strategic
Equity Series Fund dated August 27, 1999;
(2) the Statement of Additional Information of Phoenix
Multi-Portfolio Fund dated March 30, 1999;
(3) the Annual Report of Phoenix Strategic Equity Series Fund for
the year ended April 30, 1999;
(4) the Semiannual Report of Phoenix Strategic Equity Series Fund
for the six-month period ended October 31, 1999.
(5) the Annual Report of Phoenix Multi-Portfolio Fund for the year
ended November 30, 1998;
(6) the Semiannual Report of Phoenix Multi-Portfolio Fund for the
six-month period ended May 31, 1999; and
(7) the Pro Forma Financial Statements.
This Statement of Additional Information, which is not a prospectus,
supplements and should be read in conjunction with the Prospectus/Proxy
Statement dated January __, 2000. A copy of the Prospectus/Proxy Statement may
be obtained without charge by contacting Equity Planning, at 100 Bright Meadow
Boulevard, Post Office Box 2200, Enfield, Connecticut 06083-2200 or by
telephoning Equity Planning toll free at 1 (800) 243-4361.
The date of this Statement of Additional Information is January __,
2000.
2
<PAGE>
Phoenix Investment Partners
Semiannual Report
October 31, 1999
ENGEMANN
Phoenix-Engemann
Small Cap Fund
SENECA
Phoenix-Seneca
Strategic Theme Fund
Phoenix-Seneca
Opportunities Fund
[LOGO] PHOENIX
INVESTMENT PARTNERS
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
We are pleased to provide this semiannual financial summary for the Phoenix
Strategic Equity Series for the six months ended October 31, 1999.
If you have any questions, please call your financial advisor or a customer
service representative at 1-800-243-1574 between 8:00 a.m. and 6:00 p.m. Eastern
Time, Monday through Friday.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
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 Strategic Theme Fund....................................... 9
Phoenix-Seneca Equity Opportunities Fund.................................. 16
Notes to Financial Statements............................................. 21
</TABLE>
2
<PAGE>
PHOENIX-ENGEMANN SMALL CAP FUND
INVESTMENTS AT OCTOBER 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
----------- -------------
<S> <C> <C>
COMMON STOCKS--90.9%
AIR FREIGHT--1.3%
Expeditors International of Washington,
Inc..................................... 90,000 $ 3,363,750
BIOTECHNOLOGY--1.4%
Coulter Pharmaceutical, Inc.(b)......... 72,000 1,224,000
IDEC Pharmaceuticals Corp.(b)........... 10,000 1,161,875
Pharmacyclics, Inc.(b).................. 30,000 1,061,250
------------
3,447,125
------------
BROADCASTING (TELEVISION, RADIO & CABLE)--2.6%
Cumulus Media, Inc.(b).................. 80,000 2,870,000
Insight Communications Co., Inc.(b)..... 34,500 815,062
Salem Communications Corp.(b)........... 65,000 1,616,875
Spanish Broadcasting System, Inc.
Class A(b).............................. 45,000 1,198,125
------------
6,500,062
------------
COMMUNICATIONS EQUIPMENT--3.2%
Advanced Fibre Communications,
Inc.(b)................................. 76,000 1,662,500
Netro Corp.(b).......................... 64,500 1,471,406
Ortel Corp.(b).......................... 150,000 4,968,750
------------
8,102,656
------------
COMPUTERS (NETWORKING)--10.0%
Agile Software Corp.(b)................. 24,000 2,352,000
Akamai Technologies, Inc.(b)............ 3,000 435,562
Bluestone Software, Inc.(b)............. 24,000 885,000
Commerce One, Inc.(b)................... 30,000 5,137,500
ITXC Corp.(b)........................... 36,000 1,629,000
Intertrust Technologies Corp.(b)........ 12,000 654,000
Interwoven, Inc.(b)..................... 28,000 2,194,500
Keynote Systems, Inc.(b)................ 40,500 1,837,687
NetZero, Inc.(b)........................ 73,300 1,507,231
Women.com Networks, Inc.(b)............. 455,930 8,206,740
------------
24,839,220
------------
COMPUTERS (SOFTWARE & SERVICES)--17.3%
Abacus Direct Corp.(b).................. 73,000 10,694,500
BEA Systems, Inc.(b).................... 120,000 5,475,000
Concentric Network Corp.(b)............. 54,000 1,383,750
<CAPTION>
SHARES VALUE
---------- ------------
<S> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)--CONTINUED
E.piphany, Inc.(b)...................... 18,000 $ 1,548,000
Edwards (J.D.) & Co.(b)................. 140,000 3,351,250
Inktomi Corp.(b)........................ 6,400 649,200
Legato Systems, Inc.(b)................. 69,400 3,730,250
New Era of Networks, Inc.(b)............ 55,000 1,784,062
Peregrine Systems, Inc.(b).............. 150,000 6,581,250
Sapient Corp.(b)........................ 45,000 5,754,375
Verio, Inc.(b).......................... 60,000 2,238,750
------------
43,190,387
------------
CONSUMER FINANCE--3.2%
Metris Companies, Inc................... 230,000 7,920,625
ELECTRICAL EQUIPMENT--4.0%
Advanced Energy Industries, Inc.(b)..... 103,000 4,235,875
Flextronics International Ltd.(b)....... 80,000 5,680,000
------------
9,915,875
------------
ELECTRONICS (COMPONENT DISTRIBUTORS)--0.8%
NETsilicon, Inc.(b)..................... 165,000 2,103,750
ELECTRONICS (INSTRUMENTATION)--0.9%
Meade Instruments Corp.(b).............. 85,000 2,167,500
ELECTRONICS (SEMICONDUCTORS)--12.7%
Applied Micro Circuits Corp.(b)......... 108,000 8,403,750
Conexant Systems, Inc.(b)............... 70,000 6,536,250
Micrel, Inc.(b)......................... 134,000 7,286,250
SDL, Inc.(b)............................ 22,800 2,811,525
TriQuint Semiconductor, Inc.(b)......... 35,750 2,860,000
Vitesse Semiconductor Corp.(b).......... 80,000 3,670,000
------------
31,567,775
------------
EQUIPMENT (SEMICONDUCTOR)--0.7%
Cymer, Inc.(b).......................... 44,000 1,625,250
FINANCIAL (DIVERSIFIED)--1.7%
Federal Agricultural Mortgage Corp.
Class C(b).............................. 176,000 3,234,000
Pinnacle Holdings, Inc.(b).............. 45,000 1,080,000
------------
4,314,000
------------
</TABLE>
See Notes to Financial Statements 3
<PAGE>
Phoenix-Engemann Small Cap Fund
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------
<S> <C> <C>
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--0.5%
Championship Auto Racing Teams,
Inc.(b)................................. 51,000 $ 1,169,813
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.5%
Inhale Therapeutic Systems(b)........... 40,000 1,102,500
ViroPharma, Inc.(b)..................... 9,000 187,875
------------
1,290,375
------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.6%
ArthroCare Corp.(b)..................... 21,000 1,522,500
INVESTMENT MANAGEMENT--1.4%
Gabelli Asset Management, Inc.
Class A(b).............................. 241,500 3,607,406
OIL & GAS (EXPLORATION & PRODUCTION)--0.7%
Pinnacle Oil International, Inc.(b)..... 115,000 1,635,156
POWER PRODUCERS (INDEPENDENT)--0.1%
Plug Power, Inc.(b)..................... 22,500 360,000
RAILROADS--1.5%
Kansas City Southern Industries, Inc.... 80,000 3,795,000
RESTAURANTS--1.7%
Cheesecake Factory, Inc. (The)(b)....... 139,000 4,256,875
RETAIL (BUILDING SUPPLIES)--0.4%
Fastenal Co............................. 28,000 1,015,000
RETAIL (COMPUTERS & ELECTRONICS)--0.4%
REX Stores Corp.(b)..................... 33,000 944,625
RETAIL (DISCOUNTERS)--1.5%
99 Cents Only Stores(b)................. 124,275 3,712,716
RETAIL (FOOD CHAINS)--2.4%
Smart & Final, Inc.(b).................. 303,832 2,772,467
Whole Foods Market, Inc.(b)............. 95,000 3,230,000
------------
6,002,467
------------
RETAIL (SPECIALTY)--7.2%
Cost Plus, Inc.(b)...................... 270,000 9,855,000
Linens 'n Things, Inc.(b)............... 58,000 2,305,500
Lithia Motors, Inc. Class A(b).......... 75,000 1,495,313
Sonic Automotive, Inc.(b)............... 100,000 1,043,750
eToys, Inc.(b).......................... 23,000 1,374,250
<CAPTION>
SHARES VALUE
---------- ------------
<S> <C> <C>
RETAIL (SPECIALTY)--CONTINUED
uBid, Inc.(b)........................... 48,000 $ 1,758,000
------------
17,831,813
------------
RETAIL (SPECIALTY-APPAREL)--0.8%
Children's Place Retail Stores, Inc.
(The)(b)................................ 75,000 1,954,688
SERVICES (ADVERTISING/MARKETING)--0.3%
MyPoints.com, Inc.(b)................... 60,000 810,000
SERVICES (COMMERCIAL & CONSUMER)--4.1%
Charles River Associates, Inc.(b)....... 45,000 1,136,250
Corporate Executive Board Co.
(The)(b)................................ 60,000 2,265,000
MIPS Technologies, Inc. Class A(b)...... 103,650 2,992,894
NCO Group, Inc.(b)...................... 92,000 3,898,500
------------
10,292,644
------------
SERVICES (COMPUTER SYSTEMS)--3.4%
CyberSource Corp.(b).................... 49,000 3,111,500
Whittman-Hart, Inc.(b).................. 140,000 5,381,250
------------
8,492,750
------------
SERVICES (DATA PROCESSING)--0.6%
Predictive Systems, Inc.(b)............. 19,500 848,250
ZapMe! Corp.(b)......................... 90,000 675,000
------------
1,523,250
------------
TELECOMMUNICATIONS (LONG DISTANCE)--1.3%
WinStar Communications, Inc.(b)......... 82,000 3,182,625
TELEPHONE--0.9%
Allied Riser Communications Corp.(b).... 36,000 650,250
Network Plus Corp.(b)................... 121,000 1,497,375
------------
2,147,625
------------
TEXTILES (APPAREL)--0.8%
bebe Stores, Inc.(b).................... 72,500 1,912,188
- - --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $136,297,347) 226,517,491
- - --------------------------------------------------------------------------------
</TABLE>
4 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Small Cap Fund
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------
FOREIGN COMMON STOCKS--4.0%
<S> <C> <C>
COMMUNICATIONS EQUIPMENT--1.5%
Research in Motion Ltd. (Canada)(b)..... 120,000 $ 3,724,251
INSURANCE (LIFE/HEALTH)--0.4%
London Pacific Group Ltd. Sponsored ADR
(United Kingdom)........................ 49,000 986,125
OIL & GAS (EXPLORATION & PRODUCTION)--1.9%
Encal Energy Ltd. (Canada)(b)........... 1,000,000 4,589,027
SERVICES (DATA PROCESSING)--0.2%
Trintech Group PLC Sponsored ADR
(Germany)(b)............................ 30,000 528,750
- - --------------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $6,535,786) 9,828,153
- - --------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--94.9%
(IDENTIFIED COST $142,833,133) 236,345,644
- - --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
-------- ----------- ---------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--4.8%
COMMERCIAL PAPER--4.2%
Coca Cola Co. 5.27%, 11/1/99............ A-1+ $ 6,365 $ 6,365,000
Koch Industries, Inc. 5.34%, 11/1/99.... A-1+ 4,055 4,055,000
------------
10,420,000
------------
FEDERAL AGENCY SECURITIES--0.6%
FMC Discount Note 5.16%, 11/1/99........ 1,635 1,635,000
- - ---------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $12,055,000) 12,055,000
- - ---------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--99.7%
(IDENTIFIED COST $154,888,133) 248,400,644(a)
Cash and receivables, less liabilities--0.3% 794,198
------------
NET ASSETS--100.0% $249,194,842
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $98,360,705 and gross
depreciation of $5,818,804 for federal income tax purposes. At October 31,
1999, the aggregate cost of securities for federal income tax purposes was
$155,858,743.
(b) Non-income producing.
See Notes to Financial Statements
5
<PAGE>
Phoenix-Engemann Small Cap Fund
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $154,888,133) $ 248,400,644
Cash 303,105
Receivables
Fund shares sold 2,773,743
Investment securities sold 1,764,672
Prepaid expenses 4,528
--------------
Total assets 253,246,692
--------------
LIABILITIES
Payables
Investment securities purchased 3,253,262
Fund shares repurchased 295,676
Transfer agent fee 142,263
Investment advisory fee 138,213
Distribution fee 104,913
Financial agent fee 18,786
Trustees' fee 5,390
Accrued expenses 93,347
--------------
Total liabilities 4,051,850
--------------
NET ASSETS $ 249,194,842
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 183,661,374
Undistributed net investment loss (1,725,752)
Accumulated net realized loss (26,253,291)
Net unrealized appreciation 93,512,511
--------------
NET ASSETS $ 249,194,842
==============
CLASS A
Shares of beneficial interest outstanding,
$0.0001 par value, unlimited authorization
(Net Assets $146,949,687) 7,255,402
Net asset value per share $20.25
Offering price per share $20.25/(1-4.75%) $21.26
CLASS B
Shares of beneficial interest outstanding,
$0.0001 par value, unlimited authorization
(Net Assets $102,245,155) 5,226,263
Net asset value and offering price per share $19.56
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 147,458
Dividends 48,227
--------------
Total investment income 195,685
--------------
EXPENSES
Investment advisory fee 791,025
Distribution fee, Class A 151,332
Distribution fee, Class B 449,372
Financial agent 104,364
Transfer agent 327,572
Printing 37,619
Professional 19,804
Registration 16,683
Custodian 9,653
Trustees 8,689
Miscellaneous 5,324
--------------
Total expenses 1,921,437
--------------
NET INVESTMENT LOSS (1,725,752)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (944,423)
Net realized gain on foreign currency transactions 668
Net change in unrealized appreciation (depreciation) on
investments 58,716,695
--------------
NET GAIN ON INVESTMENTS 57,772,940
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 56,047,188
==============
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Small Cap Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
10/31/99 Year Ended
(Unaudited) 4/30/99
------------ -------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (1,725,752) $ (3,189,899)
Net realized gain (loss) (943,755) (24,983,780)
Net change in unrealized appreciation
(depreciation) 58,716,695 6,208,917
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 56,047,188 (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
(16,115,590 and 18,013,110 shares,
respectively) 273,409,835 273,064,204
Net asset value of shares issued from
reinvestment of distributions
(0 and 360,829 shares, respectively) -- 5,383,573
Cost of shares repurchased (16,569,477
and 22,385,155 shares, respectively) (280,818,977) (343,459,404)
------------ -------------
Total (7,409,142) (65,011,627)
------------ -------------
CLASS B
Proceeds from sales of shares (498,510
and 987,925 shares, respectively) 8,340,399 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 (1,127,028
and 4,075,435 shares, respectively) (18,445,649) (61,757,518)
------------ -------------
Total (10,105,250) (43,713,392)
------------ -------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (17,514,392) (108,725,019)
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS 38,532,796 (140,682,836)
NET ASSETS
Beginning of period 210,662,046 351,344,882
------------ -------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($1,725,752) AND $0, RESPECTIVELY] $249,194,842 $ 210,662,046
============ =============
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Phoenix-Engemann Small Cap Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED APRIL 30 INCEPTION
10/31/99 --------------------------------- 10/16/95 TO
(UNAUDITED) 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) (0.11)(5) (0.14)(5) (0.08)(5) (0.05)(5) (0.04)(1)(5)
Net realized and unrealized gain
(loss) 4.62 (0.88) 6.80 (2.53) 6.79
------ ------- ------- ------- ------
TOTAL FROM INVESTMENT
OPERATIONS 4.51 (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 4.51 (1.63) 3.24 (2.61) 6.74
------ ------- ------- ------- ------
NET ASSET VALUE, END OF PERIOD $20.25 $ 15.74 $ 17.37 $ 14.13 $16.74
====== ======= ======= ======= ======
Total return(2) 28.72 %(4) (5.66)% 52.33 % (15.43)% 67.48 %(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $146,950 $121,313 $203,560 $155,089 $98,372
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.50 %(3) 1.46 %(6) 1.31 % 1.37 % 1.50 %(3)
Net investment income (loss) (1.31)%(3) (0.95)% (0.48)% (0.28)% (0.53)%(3)
Portfolio turnover 53 %(4) 276 % 498 % 325 % 103 %(4)
</TABLE>
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED APRIL 30 INCEPTION
10/31/99 ------------------------------- 10/16/95 TO
(UNAUDITED) 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) (0.17)(5) (0.25)(5) (0.21)(5) (0.17)(5) (0.09)(1)(5)
Net realized and unrealized gain
(loss) 4.47 (0.87) 6.70 (2.50) 6.77
------ ------ ------- ------ ------
TOTAL FROM INVESTMENT
OPERATIONS 4.30 (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 4.30 (1.73) 3.01 (2.70) 6.68
------ ------ ------- ------ ------
NET ASSET VALUE, END OF PERIOD $19.56 $15.26 $ 16.99 $13.98 $16.68
====== ====== ======= ====== ======
Total return(2) 28.24 %(4) (6.39)% 51.16 % (16.03)% 66.80 %(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $102,245 $89,349 $147,785 $97,647 $45,168
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.24 %(3) 2.21 %(6) 2.06 % 2.12 % 2.26 %(3)
Net investment income (loss) (2.06)%(3) (1.70)% (1.22)% (1.03)% (1.44)%(3)
Portfolio turnover 53 %(4) 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) 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
<PAGE>
PHOENIX-SENECA STRATEGIC THEME FUND
INVESTMENTS AT OCTOBER 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C>
COMMON STOCKS--85.0%
ALUMINUM--3.4%
Alcoa, Inc.............................. 119,850 $ 7,280,887
BROADCASTING (TELEVISION, RADIO & CABLE)--6.2%
AMFM, Inc.(b)........................... 57,500 4,025,000
EchoStar Communications Corp.(b)........ 152,200 9,417,375
------------
13,442,375
------------
CHEMICALS--3.2%
Dow Chemical Co......................... 59,000 6,976,750
COMMUNICATIONS EQUIPMENT--9.0%
General Motors Corp. Class H(b)......... 146,000 10,630,625
Motorola, Inc........................... 89,000 8,671,937
------------
19,302,562
------------
COMPUTERS (HARDWARE)--6.5%
Extreme Networks, Inc.(b)............... 30,700 2,465,594
Sun Microsystems, Inc.(b)............... 109,600 11,597,050
------------
14,062,644
------------
COMPUTERS (SOFTWARE & SERVICES)--4.3%
Microsoft Corp.(b)...................... 100,600 9,311,787
ELECTRICAL EQUIPMENT--2.7%
General Electric Co..................... 43,300 5,869,856
ELECTRONICS (SEMICONDUCTORS)--11.3%
Intel Corp.............................. 54,400 4,212,600
LSI Logic Corp.(b)...................... 150,950 8,028,653
Texas Instruments, Inc.................. 135,000 12,116,250
------------
24,357,503
------------
EQUIPMENT (SEMICONDUCTOR)--7.3%
Applied Materials, Inc.(b).............. 119,100 10,696,669
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C>
EQUIPMENT (SEMICONDUCTOR)--CONTINUED
Teradyne, Inc.(b)....................... 129,200 $ 4,974,200
------------
15,670,869
------------
FINANCIAL (DIVERSIFIED)--6.1%
Citigroup, Inc.......................... 89,550 4,846,894
Morgan Stanley Dean Witter & Co......... 75,300 8,306,531
------------
13,153,425
------------
HEALTH CARE (DIVERSIFIED)--1.8%
Johnson & Johnson....................... 37,000 3,875,750
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--2.3%
VISX, Inc.(b)........................... 79,500 4,973,719
OIL & GAS (DRILLING & EQUIPMENT)--6.7%
Baker Hughes, Inc....................... 260,200 7,269,337
Halliburton Co.......................... 193,000 7,273,687
------------
14,543,024
------------
RETAIL (COMPUTERS & ELECTRONICS)--5.3%
Best Buy Co., Inc.(b)................... 31,160 1,731,328
Tandy Corp.............................. 155,000 9,755,313
------------
11,486,641
------------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--5.4%
Nextel Communications, Inc.(b).......... 46,500 4,007,719
Sprint Corp. (PCS Group)(b)............. 92,000 7,630,250
------------
11,637,969
------------
TELECOMMUNICATIONS (LONG DISTANCE)--3.5%
MCI WorldCom, Inc.(b)................... 87,240 7,486,283
- - ------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $152,539,053) 183,432,044
- - ------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Phoenix-Seneca Strategic Theme Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
FOREIGN COMMON STOCKS--9.2%
<S> <C> <C>
COMMUNICATIONS EQUIPMENT--9.2%
Nokia Oyj Sponsored ADR (Finland)....... 92,900 $ 10,735,756
Nortel Networks Corp. (Canada).......... 147,000 9,104,813
- - ------------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $15,144,613) 19,840,569
- - ------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--94.2%
(IDENTIFIED COST $167,683,666) 203,272,613
- - ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
-------- ------- ---------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--3.4%
COMMERCIAL PAPER--3.4%
Koch Industries, Inc. 5.34%, 11/1/99.... A-1+ $3,245 $ 3,245,000
Albertson's, Inc. 5.30%, 11/2/99........ A-1 1,500 1,499,779
Gannett Co., Inc. 5.30%, 11/5/99........ A-1 1,575 1,574,072
Private Export Funding Corp. 5.28%,
11/9/99................................. A-1+ 1,000 998,827
- - -----------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $7,317,678) 7,317,678
- - -----------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--97.6%
(IDENTIFIED COST $175,001,344) 210,590,291(a)
Cash and receivables, less liabilities--2.4% 5,119,651
------------
NET ASSETS--100.0% $215,709,942
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $40,289,866 and gross
depreciation of $5,089,260 for federal income tax purposes. At October 31,
1999, the aggregate cost of securities for federal income tax purposes was
$175,389,685.
(b) Non-income producing.
10
See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Strategic Theme Fund
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $175,001,344) $ 210,590,291
Cash 1,622
Receivables
Investment securities sold 7,716,073
Fund shares sold 170,369
Dividends and interest 20,475
Prepaid expenses 2,630
--------------
Total assets 218,501,460
--------------
LIABILITIES
Payables
Investment securities purchased 2,408,992
Fund shares repurchased 55,840
Investment advisory fee 129,545
Distribution fee 99,395
Transfer agent fee 30,643
Financial agent fee 20,848
Trustees' fee 4,481
Accrued expenses 41,774
--------------
Total liabilities 2,791,518
--------------
NET ASSETS $ 215,709,942
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 149,181,334
Undistributed net investment loss (945,236)
Accumulated net realized gain 31,884,897
Net unrealized appreciation 35,588,947
--------------
NET ASSETS $ 215,709,942
==============
CLASS A
Shares of beneficial interest outstanding,
$0.0001 par value, unlimited authorization
(Net Assets $122,198,546) 6,634,775
Net asset value per share $18.42
Offering price per share $18.42/(1-4.75%) $19.34
CLASS B
Shares of beneficial interest outstanding,
$0.0001 par value, unlimited authorization
(Net Assets $92,047,015) 5,165,204
Net asset value per share and offering per share $17.82
CLASS C
Shares of beneficial interest outstanding,
$0.0001 par value, unlimited authorization
(Net Assets $1,464,381) 82,170
Net asset value per share and offering per share $17.82
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 445,358
Interest 270,826
--------------
Total investment income 716,184
--------------
EXPENSES
Investment advisory fee 759,686
Distribution fee, Class A 142,901
Distribution fee, Class B 436,497
Distribution fee, Class C 4,814
Financial agent fee 104,205
Transfer agent 136,846
Registration 22,685
Printing 19,857
Professional 15,049
Custodian 9,084
Trustees 8,571
Miscellaneous 3,913
--------------
Total expenses 1,664,108
Custodian fees paid indirectly (2,688)
--------------
Net expenses 1,661,420
--------------
NET INVESTMENT LOSS (945,236)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 32,263,878
Net change in unrealized appreciation (depreciation) on
investments (12,116,802)
--------------
NET GAIN ON INVESTMENTS 20,147,076
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 19,201,840
==============
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Phoenix-Seneca Strategic Theme Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
10/31/99 Year Ended
(Unaudited) 4/30/99
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (945,236) $ (1,592,337)
Net realized gain (loss) 32,263,878 18,354,872
Net change in unrealized appreciation
(depreciation) (12,116,802) 38,225,117
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 19,201,840 54,987,652
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A (9,383,652) (6,923,924)
Net realized gains, Class B (7,340,312) (5,772,230)
Net realized gains, Class C (103,337) (28,108)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (16,827,301) (12,724,262)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(1,478,273 and 3,919,529 shares,
respectively) 27,016,064 64,808,215
Net asset value of shares issued from
reinvestment of distributions
(510,078 and 419,976 shares,
respectively) 8,982,584 6,560,032
Cost of shares repurchased (1,272,801
and 4,982,395 shares, respectively) (23,340,769) (76,814,571)
------------ ------------
Total 12,657,879 (5,446,324)
------------ ------------
CLASS B
Proceeds from sales of shares (424,048
and 819,204 shares, respectively) 7,538,687 13,391,640
Net asset value of shares issued from
reinvestment of distributions
(378,552 and 329,762 shares,
respectively) 6,454,296 5,028,874
Cost of shares repurchased (410,260
and 1,286,009 shares, respectively) (7,350,883) (18,585,029)
------------ ------------
Total 6,642,100 (164,515)
------------ ------------
CLASS C
Proceeds from sales of shares (43,077
and 36,724 shares, respectively) 772,709 589,799
Net asset value of shares issued from
reinvestment of distributions
(5,562 and 1,354 shares,
respectively) 94,887 20,648
Cost of shares repurchased (4,877 and
19,484 shares, respectively) (83,057) (266,095)
------------ ------------
Total 784,539 344,352
------------ ------------
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 20,084,518 (5,490,038)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS 22,459,057 36,773,352
NET ASSETS
Beginning of period 193,250,885 156,477,533
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($945,236) AND $0, RESPECTIVELY] $215,709,942 $193,250,885
============ ============
</TABLE>
12 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
--------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED APRIL 30 FROM INCEPTION
10/31/99 ------------------------------------------- 10/16/95 TO
(UNAUDITED) 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) (0.06)(5) (0.11)(5) (0.04)(5) 0.06(5) 0.00(1)(5)
Net realized and unrealized gain
(loss) 1.80 6.03 4.03 (0.38) 2.39
--------- --------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.74 5.92 3.99 (0.32) 2.39
--------- --------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- (0.01) --
Dividends from net realized gains (1.54) (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 (1.54) (1.40) (2.32) (0.02) (0.02)
--------- --------- -------- -------- --------
Change in net asset value 0.20 4.52 1.67 (0.34) 2.37
--------- --------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 18.42 $ 18.22 $ 13.70 $ 12.03 $ 12.37
========= ========= ======== ======== ========
Total return(2) 9.95 %(4) 44.91 % 36.22 % (2.57)% 23.89 %(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $122,199 $107,871 $89,884 $77,827 $33,393
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.31 %(3)(7) 1.38 %(7) 1.33 % 1.40 % 1.40 %(3)
Net investment income (loss) (0.60)%(3) (0.72)% (0.26)% 0.49 % (0.09)%(3)
Portfolio turnover 110 %(4) 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 13
<PAGE>
Phoenix-Seneca Strategic Theme Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED APRIL 30 FROM INCEPTION
10/31/99 ----------------------------------------- 10/16/95 TO
(UNAUDITED) 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) (0.12)(5) (0.22)(5) (0.14)(5) (0.03)(5) (0.06)(1)(5)
Net realized and unrealized gain
(loss) 1.73 5.91 3.98 (0.38) 2.40
-------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.61 5.69 3.84(5) (0.41) 2.34
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- -- --
Dividends from net realized gains (1.54) (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 (1.54) (1.40) (2.29) (0.01) (0.01)
-------- -------- -------- -------- --------
Change in net asset value 0.07 4.29 1.55 (0.42) 2.33
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 17.82 $ 17.75 $ 13.46 $ 11.91 $ 12.33
======== ======== ======== ======== ========
Total return(2) 9.47 %(4) 43.98 % 35.18 % (3.31)% 23.41 %(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $92,047 $84,698 $66,107 $49,843 $11,920
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.06 %(3)(7) 2.13 %(7) 2.08 % 2.15 % 2.16 %(3)
Net investment income (loss) (1.35)%(3) (1.48)% (1.02)% (0.23)% (1.06)%(3)
Portfolio turnover 110 %(4) 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.
14 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
------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
10/31/99 ENDED 11/3/97 TO
(UNAUDITED) 4/30/99 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) (0.12)(4) (0.22)(4) (0.05)(4)
Net realized and unrealized gain
(loss) 1.73 5.90 0.88
------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 1.61 5.68 0.83
------ ------ ------
LESS DISTRIBUTIONS
Dividends from net realized gains (1.54) (1.40) (2.29)
------ ------ ------
TOTAL DISTRIBUTIONS (1.54) (1.40) (2.29)
------ ------ ------
Change in net asset value 0.07 4.28 (1.46)
------ ------ ------
NET ASSET VALUE, END OF PERIOD $17.82 $17.75 $13.47
====== ====== ======
Total return(1) 9.47 %(3) 43.87 % 7.92 %(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,464 $682 $267
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.06 %(2)(6) 2.13 %(6) 2.08 %(2)
Net investment income (loss) (1.36)%(2) (1.47)% (0.87)%(2)
Portfolio turnover 110 %(3) 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 15
<PAGE>
PHOENIX-SENECA EQUITY OPPORTUNITIES FUND
INVESTMENTS AT OCTOBER 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C>
COMMON STOCKS--82.5%
ALUMINUM--1.8%
Alcoa, Inc.............................. 67,800 $ 4,118,850
BANKS (MAJOR REGIONAL)--2.9%
Mellon Financial Corp................... 178,630 6,598,146
BROADCASTING (TELEVISION, RADIO & CABLE)--3.5%
AMFM, Inc.(b)........................... 112,110 7,847,700
CHEMICALS -- 2.0%
Dow Chemical Co......................... 37,380 4,420,185
COMMUNICATIONS EQUIPMENT--7.0%
General Motors Corp. Class H(b)......... 99,220 7,224,456
Motorola, Inc........................... 82,510 8,039,568
Sycamore Networks, Inc.(b).............. 2,330 500,950
------------
15,764,974
------------
COMPUTERS (HARDWARE)--2.6%
Sun Microsystems, Inc.(b)............... 54,130 5,727,631
COMPUTERS (NETWORKING)--3.1%
Cisco Systems, Inc.(b).................. 79,476 5,881,224
Internap Network Services Corp.(b)...... 11,410 1,053,999
------------
6,935,223
------------
COMPUTERS (SOFTWARE & SERVICES)--3.9%
Microsoft Corp.(b)...................... 94,400 8,737,900
ELECTRICAL EQUIPMENT--4.2%
General Electric Co..................... 70,000 9,489,375
ELECTRONICS (SEMICONDUCTORS)--1.3%
Intel Corp.............................. 37,600 2,911,650
FINANCIAL (DIVERSIFIED)--8.1%
Citigroup, Inc.......................... 172,605 9,342,246
Morgan Stanley Dean Witter & Co......... 79,690 8,790,803
------------
18,133,049
------------
FOODS--2.0%
General Mills, Inc...................... 52,050 4,538,109
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C>
HEALTH CARE (DIVERSIFIED)--6.6%
Bristol-Myers Squibb Co................. 110,000 $ 8,449,375
Johnson & Johnson....................... 60,960 6,385,560
------------
14,834,935
------------
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--2.9%
Merck & Co., Inc........................ 82,840 6,590,957
HOUSEHOLD PRODUCTS (NON-DURABLE)--2.5%
Procter & Gamble Co. (The).............. 52,430 5,498,596
OIL & GAS (DRILLING & EQUIPMENT)--5.0%
Baker Hughes, Inc....................... 176,620 4,934,321
Halliburton Co.......................... 165,410 6,233,889
------------
11,168,210
------------
OIL (INTERNATIONAL INTEGRATED)--2.9%
Texaco, Inc............................. 104,640 6,422,280
RETAIL (BUILDING SUPPLIES)--1.2%
Lowe's Companies, Inc................... 47,560 2,615,800
RETAIL (COMPUTERS & ELECTRONICS)--3.6%
Tandy Corp.............................. 128,010 8,056,629
RETAIL (GENERAL MERCHANDISE)--2.6%
Wal-Mart Stores, Inc.................... 100,100 5,718,213
RETAIL (SPECIALTY-APPAREL)--2.2%
TJX Companies, Inc. (The)............... 177,950 4,826,894
SERVICES (ADVERTISING/MARKETING)--4.1%
Outdoor Systems, Inc.(b)................ 217,360 9,210,630
TELECOMMUNICATIONS (LONG DISTANCE)--3.6%
MCI WorldCom, Inc.(b)................... 95,030 8,154,762
TELEPHONE--2.9%
Bell Atlantic Corp...................... 98,640 6,405,435
- - --------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $140,768,613) 184,726,133
- - --------------------------------------------------------------------
</TABLE>
16 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Equity Opportunities Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
FOREIGN COMMON STOCKS--11.1%
<S> <C> <C>
COMMUNICATIONS EQUIPMENT--8.0%
Nokia Oyj Sponsored ADR (Finland)....... 75,340 $ 8,706,479
Nortel Networks Corp. (Canada).......... 149,220 9,242,314
------------
17,948,793
------------
ELECTRONICS (SEMICONDUCTORS)--3.1%
STMicroelectronics NV (Netherlands)..... 76,400 6,942,850
- - --------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $19,270,683) 24,891,643
- - --------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--93.6%
(IDENTIFIED COST $160,039,296) 209,617,776
- - --------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
------ ------ ------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--4.3%
COMMERCIAL PAPER--4.3%
General Electric Capital Corp. 5.25%,
11/1/99................................. A-1+ $3,565 $ 3,565,000
Enterprise Funding Corp. 5.30%,
11/2/99................................. A-1 3,000 2,999,558
Merrill Lynch & Co., Inc. 5.33%,
11/3/99................................. A-1+ 3,140 3,139,070
- - ------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $9,703,628) 9,703,628
- - ------------------------------------------------------------------------
TOTAL INVESTMENTS--97.9%
(IDENTIFIED COST $169,742,924) 219,321,404(a)
Cash and receivables, less liabilities--2.1% 4,593,343
------------
NET ASSETS--100.0% $223,914,747
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $52,558,227 and gross
depreciation of $3,245,748 for federal income tax purposes. At October 31,
1999, the aggregate cost of securities for federal income tax purposes was
$170,008,925.
(b) Non-income producing.
See Notes to Financial Statements
17
<PAGE>
Phoenix-Seneca Equity Opportunities Fund
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $169,742,924) $ 219,321,404
Cash 5,777
Receivables
Investment securities sold 4,798,059
Dividends and interest 166,085
Fund shares sold 149
Prepaid expenses 3,553
--------------
Total assets 224,295,027
--------------
LIABILITIES
Payables
Investment securities purchased 39,905
Fund shares repurchased 42,460
Investment advisory fee 124,983
Distribution fee 46,468
Transfer agent fee 37,735
Financial agent fee 18,225
Trustees' fee 5,390
Accrued expenses 65,114
--------------
Total liabilities 380,280
--------------
NET ASSETS $ 223,914,747
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest 151,463,293
Undistributed net investment loss (343,592)
Accumulated net realized gain 23,216,566
Net unrealized appreciation 49,578,480
--------------
NET ASSETS $ 223,914,747
==============
CLASS A
Shares of beneficial interest outstanding, $0.0001
par value, unlimited authorization
(Net Assets $220,832,264) 23,103,652
Net asset value per share $9.56
Offering price per share $9.56/(1-4.75%) $10.04
CLASS B
Shares of beneficial interest outstanding, $0.0001
par value, unlimited authorization
(Net Assets $3,082,483) 337,793
Net asset value and offering price per share $9.13
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 784,479
Interest 176,940
--------------
Total investment income 961,419
--------------
EXPENSES
Investment advisory fee 733,444
Distribution fee, Class A 258,456
Distribution fee, Class B 13,952
Financial agent fee 104,353
Transfer agent 124,128
Printing 19,773
Professional 16,188
Registration 15,296
Trustees 8,688
Custodian 6,907
Miscellaneous 3,826
--------------
Total expenses 1,305,011
--------------
NET INVESTMENT LOSS (343,592)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 23,495,759
Net change in unrealized appreciation (depreciation) on
investments 4,991,778
--------------
NET GAIN ON INVESTMENTS 28,487,537
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 28,143,945
==============
</TABLE>
18 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Equity Opportunities Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
10/31/99 Year Ended
(Unaudited) 4/30/99
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (343,592) $ (414,880)
Net realized gain (loss) 23,495,759 8,800,896
Net change in unrealized appreciation
(depreciation) 4,991,778 22,526,413
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 28,143,945 30,912,429
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A (8,212,238) (14,338,287)
Net realized gains, Class B (116,465) (184,555)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (8,328,703) (14,522,842)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (152,954
and 776,243 shares, respectively) 1,403,922 6,205,793
Net asset value of shares issued from
reinvestment of distributions
(693,792 and 1,318,749 shares,
respectively) 6,056,802 10,444,800
Cost of shares repurchased (887,538
and 3,121,846 shares, respectively) (7,981,804) (25,370,488)
------------ ------------
Total (521,080) (8,719,895)
------------ ------------
CLASS B
Proceeds from sales of shares (42,968
and 113,886 shares, respectively) 375,318 896,049
Net asset value of shares issued from
reinvestment of distributions
(11,931 and 20,248 shares,
respectively) 99,504 154,289
Cost of shares repurchased (36,972 and
77,292 shares, respectively) (320,018) (601,028)
------------ ------------
Total 154,804 449,310
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (366,276) (8,270,585)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS 19,448,966 8,119,002
NET ASSETS
Beginning of period 204,465,781 196,346,779
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($343,592) AND $0, RESPECTIVELY] $223,914,747 $204,465,781
============ ============
</TABLE>
See Notes to Financial Statements 19
<PAGE>
Phoenix-Seneca Equity Opportunities Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED APRIL 30,
10/31/99 --------------------------------------------------------------
(UNAUDITED) 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) (0.01)(4) (0.02)(4) (0.04)(4) (0.03)(4) (0.04)(4)
Net realized and unrealized gain
(loss) 1.21 1.33 2.82 (0.90) 2.34
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 1.20 1.31 2.78 (0.93) 2.30
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- -- --
Dividends from net realized gains (0.36) (0.63) (1.63) (0.94) (0.89)
In excess of net realized gains -- -- -- (0.05) --
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (0.36) (0.63) (1.63) (0.99) (0.89)
--------- --------- --------- --------- ---------
Change in net asset value 0.84 0.68 1.15 (1.92) 1.41
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 9.56 $ 8.72 $ 8.04 $ 6.89 $ 8.81
========= ========= ========= ========= =========
Total return(1) 14.20 %(3) 17.08 % 44.66 % (12.19)% 32.86 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $220,832 $201,789 $194,296 $163,396 $213,600
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.23 %(2) 1.24 %(5) 1.18 % 1.23 % 1.25 %
Net investment income (loss) (0.32)%(2) (0.21)% (0.55)% (0.39)% (0.53)%
Portfolio turnover 67 %(3) 143 % 371 % 412 % 302 %
<CAPTION>
1995
<S> <C>
Net asset value, beginning of period $ 7.31
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.04
Net realized and unrealized gain
(loss) 0.58
---------
TOTAL FROM INVESTMENT OPERATIONS 0.62
---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.05)
Dividends from net realized gains (0.48)
In excess of net realized gains --
---------
TOTAL DISTRIBUTIONS (0.53)
---------
Change in net asset value 0.09
---------
NET ASSET VALUE, END OF PERIOD $ 7.40
=========
Total return(1) 9.16%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $179,666
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.32%
Net investment income (loss) 0.60%
Portfolio turnover 358%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED APRIL 30, INCEPTION
10/31/99 ------------------------------------------------------ 7/19/94 TO
(UNAUDITED) 1999 1998 1997 1996 4/30/95
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.37 $ 7.80 $ 6.77 $ 8.73 $ 7.39 $ 7.28
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.05)(4) (0.08)(4) (0.10)(4) (0.09)(4) (0.10)(4) 0.00
Net realized and unrealized gain
(loss) 1.17 1.28 2.76 (0.88) 2.33 0.59
------- ------- ------- ------- ------- ------
TOTAL FROM INVESTMENT OPERATIONS 1.12 1.20 2.66 (0.97) 2.23 0.59
------- ------- ------- ------- ------- ------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- -- -- --
Dividends from net realized gains (0.36) (0.63) (1.63) (0.94) (0.89) (0.48)
In excess of net realized gains -- -- -- (0.05) -- --
------- ------- ------- ------- ------- ------
TOTAL DISTRIBUTIONS (0.36) (0.63) (1.63) (0.99) (0.89) (0.48)
------- ------- ------- ------- ------- ------
Change in net asset value 0.76 0.57 1.03 (1.96) 1.34 0.11
------- ------- ------- ------- ------- ------
NET ASSET VALUE, END OF PERIOD $ 9.13 $ 8.37 $ 7.80 $ 6.77 $ 8.73 $ 7.39
======= ======= ======= ======= ======= ======
Total return(1) 13.84 %(3) 16.18 % 43.58 % (12.79)% 31.92 % 8.69 %(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $ 3,083 $ 2,677 $ 2,051 $ 1,666 $ 1,348 $ 525
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.98 %(2) 1.99 %(5) 1.93 % 1.98 % 2.06 % 2.15 %(2)
Net investment income (loss) (1.06)%(2) (0.97)% (1.30)% (1.15)% (1.18)% (0.06)%(2)
Portfolio turnover 67 %(3) 143 % 371 % 412 % 302 % 358 %
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized.
(3) Not annualized.
(4) Computed using average shares outstanding.
(5) For 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.
20
See Notes to Financial Statements
<PAGE>
PHOENIX STRATEGIC EQUITY SERIES FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1999 (UNAUDITED)
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 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. The Equity
Opportunities Fund seeks to achieve long-term growth of capital from investment
in a diversified group of stocks or securities convertible into stocks.
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. Class A shares are
sold with a front-end sales charge of up to 4.75%. Class B shares are sold with
a contingent deferred sales charge which declines from 5% to zero depending on
the period of time the shares are held. 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 generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses.
Actual results could differ from those estimates.
A. SECURITY VALUATION:
Equity securities are valued at the last sale price, or if there had been no
sale that day, at the last bid price. Short-term investments having a remaining
maturity of 60 days or less are valued at amortized cost which approximates
market. All other securities and assets are valued at their fair value as
determined in good faith by or under t
e 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.
21
<PAGE>
PHOENIX STRATEGIC EQUITY SERIES FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1999 (UNAUDITED) (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., 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%
Strategic Theme Fund............... 0.75% 0.70% 0.65%
Equity Opportunities Fund.......... 0.70% 0.65% 0.60%
</TABLE>
Seneca Capital Management LLC ("Seneca") serves as subadviser to PIC for the
Equity Opportunities 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 $18,608 for Class A shares and deferred
sales charges of $307,244 for Class B shares and $590 for Class C shares, for
the six months ended October 31, 1999. 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 six months ended October 31, 1999, $825,868 was earned
by the Distributor, $567,456 was earned by unaffiliated participants and $64,000
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 six months ended October 31, 1999,
transfer agent fees were $588,546 of which PEPCO retained $258,347 which is net
of the fees paid to State Street.
At October 31, 1999, PHL and its affiliates held shares of the Trust as
follows:
<TABLE>
<CAPTION>
Aggregate
Net Asset
Shares Value
-------- ---------
<S> <C> <C>
Equity Opportunities Fund--Class A....... 173 $ 1,654
Equity Opportunities Fund--Class B....... 26,519 242,118
</TABLE>
22
<PAGE>
PHOENIX STRATEGIC EQUITY SERIES FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1999 (UNAUDITED) (CONTINUED)
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities (excluding short-term securities and
options) for the six months ended October 31, 1999, aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
Small Cap Fund................... $110,288,918 $141,631,185
Strategic Theme Fund............. 213,296,543 216,406,453
Equity Opportunities Fund........ 135,875,796 152,926,575
</TABLE>
There were no purchases or sales of long-term U.S. Government securities.
4. CAPITAL LOSS CARRYOVERS
At April 30, 1999, the Small Cap Fund had a capital loss carryover of
$23,761,798 expiring in 2007, which may be used to offset future capital gains.
This report is not authorized for distribution to prospective investors in the
Phoenix Strategic Equity Series Fund unless preceded or accompanied by an
effective prospectus which includes information concerning the sales charge, the
Fund's record and other pertinent information.
23
<PAGE>
RESULTS OF SHAREHOLDER MEETING (UNAUDITED)
A special meeting of Shareholders of the Phoenix-Seneca Strategic Theme Fund of
the Phoenix Strategic Equity Series Fund was held on August 6, 1999 to approve
the following matter:
1. Approval of a subadvisory agreement with Seneca Capital Management LLC
On the record date for this meeting there were 10,849,409 shares outstanding and
63.11% of the shares outstanding and entitled to vote were present by proxy.
NUMBER OF VOTES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--------- --------- ---------
<S> <C> <C> <C>
1. Approval of investment subadvisory
agreement 6,382,737 203,929 260,143
</TABLE>
24
<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
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
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 (option 0)
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
World Wide Web address:
www.phoenixinvestments.com
<PAGE>
PHONEIX EQUITY PLANNING CORPORATION
PO Box 2200
Enfeild CT 06083-2200
[LOGO] PHOENIX
INVESTMENT PARTNERS
PRSRT STD
U.S. Postage
PAID
ANDREWS
ASSOCIATES
PXP 679 (11/99)
<PAGE>
PHOENIX STRATEGIC EQUITY SERIES FUND
PART C
OTHER INFORMATION
Item 15. Indemnification
The response to this item is incorporated by reference to Part A of the
Prospectus/Proxy Statement in this Registration Statement under the caption
"Comparative Information on Shareholder Rights--Liability of Trustees."
Item 16. Exhibit
(1)(a) Declaration of Trust of the Registrant, previously filed, and filed via
EDGAR as Exhibit 1.1 with Post-Effective Amendment No. 26 on August 29,
1997, incorporated herein by reference.
(1)(b) Amendment to Declaration of Trust of the Registrant creating additional
classes and dual distribution system, filed with Post-Effective
Amendment No. 9 on July 19, 1994 and filed via EDGAR as Exhibit 1.2 with
Post-Effective Amendment No. 25 on August 20, 1997, incorporated herein
by reference.
(1)(c) Amendment to Declaration of Trust of the Registrant, changing name of
the Trust and establishing additional Series of the Trust, filed via
EDGAR as Exhibit 1.3 with Post-Effective Amendment No. 13 on October 16,
1995, incorporated herein by reference.
(1)(d) Amendment to Declaration of Trust of the Registrant, changing the name
of the Series of the Trust filed via EDGAR as Exhibit 1.4 with
Post-Effective Amendment No. 14 on April 15, 1996, incorporated herein
by reference.
(1)(e) Amendment to Declaration of Trust establishing an additional Series of
the Trust filed via EDGAR as Exhibit 1.5 with Post-Effective Amendment
No. 15 on May 24, 1996, incorporated herein by reference.
(1)(f) Amendment to Declaration of Trust creating additional classes and
multi-class distribution system filed via EDGAR as Exhibit 1.6 with
Post-Effective Amendment No. 27 on October 27, 1997, incorporated herein
by reference.
(2) By-laws of the Registrant, previously filed and filed via EDGAR as
Exhibit 2.1 with Post-Effective Amendment No. 29 on August 28, 1998,
incorporated herein by reference.
(3) [Not Applicable.]
(4) Agreement and Plan of Reorganization. (i)
(5) Reference is hereby made to Article VI of Registrant's Declaration of
Trust referenced in Exhibit 1 above.
(6)(a) Management Agreement between Registrant and National Securities &
Research Corporation dated January 1, 1994, as assigned to Phoenix
Investment Counsel Inc. effective June 1, 1998, previously filed, filed
via EDGAR as Exhibit 5.1 with Post-Effective Amendment No. 25 on August
20, 1997, incorporated herein by reference.
(6)(b) Investment Advisory between Registrant and Phoenix Investment Counsel,
Inc. dated October 16, 1995, filed via EDGAR as Exhibit 5.2 with
Post-Effective Amendment No. 13 on October 16, 1995, incorporated herein
by reference.
<PAGE>
(6)(c) First Amendment to Phoenix Strategic Equity Series Fund Management
Agreement between Registrant and National Securities Research
Corporation dated January 1, 1994, as assigned to Phoenix Investment
Counsel, Inc. effective June 1, 1998, filed via EDGAR as Exhibit 5.3
with Post-Effective Amendment No. 25 on August 20, 1997, incorporated
herein by reference.
(6)(d) Second Amendment to Phoenix Strategic Equity Series Fund Management
Agreement between Registrant and National Securities and Research
Corporation dated October 16, 1995, as assigned to Phoenix Investment
Counsel, Inc. effective June 1, 1998, filed via EDGAR as Exhibit 5.4
with Post-Effective Amendment No. 25 on August 20, 1997, incorporated
herein by reference.
(6)(e) Subadvisory Agreement between Phoenix Investment Counsel, Inc. and
Seneca Capital Management LLC, dated June 26, 1998, on behalf of Equity
Opportunities Fund filed via EDGAR as Exhibit 5.5 with Post-Effective
Amendment No. 29 on August 28, 1998, incorporated herein by reference.
(6)(f) Subadvisory Agreement between Phoenix Investment Counsel, Inc. and Roger
Engemann & Associates, Inc., dated June 26, 1998, on behalf of Small Cap
Fund filed via EDGAR as Exhibit 5.6 with Post-Effective Amendment No. 29
on August 28, 1998, incorporated herein by reference.
(7)(a) Underwriting Agreement between Registrant and Phoenix Equity Planning
Corporation dated November 19, 1997, filed via EDGAR as Exhibit 6.1 with
Post-Effective Amendment No. 28 on February 13, 1998, incorporated
herein by reference.
(7)(b) Form of Sales Agreement between Phoenix Equity Planning Corporation and
dealers filed via EDGAR as Exhibit 6.2 with Post-Effective Amendment No.
29 on August 28, 1998, incorporated herein by reference.
(7)(c) Form of Supplement to Phoenix Family of Funds Sales Agreement filed via
EDGAR as Exhibit 6.3 with Post-Effective Amendment No. 29 on August 28,
1998, incorporated herein by reference.
(7)(d) Form of Financial Institution Sales Contract for the Phoenix Family of
Funds filed via EDGAR as Exhibit 6.4 with Post-Effective Amendment No.
29 on August 28, 1998, incorporated herein by reference.
(8) Not Applicable.
(9) Custodian Contract between Registrant and State Street Bank and Trust
Company dated May 1, 1997, filed via EDGAR as Exhibit 8 with
Post-Effective Amendment No. 27 on October 27, 1997, incorporated herein
by reference.
(10)(a) Amended and Restated Distribution Plan for Class A Shares filed via
EDGAR as Exhibit 15.1 with Post-Effective Amendment No. 27 on October
27, 1997, incorporated herein by reference.
(10)(b) Amended and Restated Distribution Plan for Class B Shares filed via
EDGAR as Exhibit 15.2 with Post-Effective Amendment No. 27 on October
27, 1997, incorporated herein by reference.
(10)(c) Amended and Restated Distribution Plan for Class C Shares filed via
EDGAR as Exhibit 15.3 with Post-Effective Amendment No. 27 on October
27, 1997, incorporated herein by reference.
(11) Opinion and consent of Goodwin, Procter & Hoar LLP with respect to
legality of the shares being issued. (ii)
(12) Opinion and Consent of Goodwin, Procter & Hoar LLP with respect to tax
matters relating to acquisition of the Phoenix-Seneca Mid Cap Fund (to
be filed by Post-Effective Amendment).
C-2
<PAGE>
(13)(a) Transfer Agency and Service Agreement between Registrant and Phoenix
Equity Planning dated June 1, 1994, filed with Post-Effective Amendment
No. 9 on July 19, 1994, filed via EDGAR as Exhibit 9.1 with
Post-Effective Amendment No. 25 on August 20, 1997, incorporated herein
by reference.
(13)(b) Sub-Transfer Agency Agreement between Registrant and Phoenix Equity
Planning Corporation dated June 1, 1994 and filed via EDGAR as Exhibit
9.2 with Post-Effective Amendment No. 29 on August 28, 1998,
incorporated herein by reference.
(13)(c) Amended and Restated Financial Agent Agreement between Registrant and
Phoenix Equity Planning dated November 19, 1997 and filed via EDGAR as
Exhibit 9.3 with Post-Effective Amendment No. 28 on February 13, 1998,
incorporated herein by reference.
(13)(d) First Amendment to Financial Agent Agreement between Registrant and
Phoenix Equity Planning Corporation dated March 23, 1998 and filed via
EDGAR as Exhibit 9.4 with Post-Effective Amendment No. 29 on August 28,
1998, incorporated herein by reference.
(13)(e) Second Amendment to Financial Agent Agreement between Registrant and
Phoenix Equity Planning Corporation dated July 31, 1998 and filed via
EDGAR as Exhibit 9.5 with Post-Effective Amendment No. 29 on August 28,
1998, incorporated herein by reference.
(14) Consent of Independent Accountants. (iii)
(15) Not Applicable.
(16) Powers of Attorney, previously filed via EDGAR with Post-Effective
Amendment No. 30 on June 28, 1999.
(17)a Form of Proxy Card for Phoenix-Seneca Mid Cap Fund. (iv)
(17)b Prospectus of Phoenix-Seneca Strategic Theme Fund dated August 27, 1999.
(iv)
- -----------------
(i) Filed as Exhibit A to the Prospectus/Proxy Statement contained in Part
A of the Registrant's Registration Statement on Form N-14, Registration
No. 333-87215, (filed September 16, 1999) and incorporated herein by
reference.
(ii) Filed as an exhibit to the Registrant's Registration Statement on Form
N-14, Registration No. 333-87215, (filed September 16, 1999) under the
same exhibit number and incorporated herein by reference.
(iii) Filed herewith.
(iv) Filed as an exhibit to Pre-Effective Amendment No. 1 to the Registrant's
Registration Statement on Form N-14, Registration No. 333-87215, (filed
December 23, 1999) under the same exhibit number and incorporated herein
by reference.
Item 17. Undertakings
(1) The undersigned Registrant agrees that prior to any public reoffering of
the securities registered through the use of a prospectus which is a
part of this Registration Statement by any person or party who is deemed
to be an underwriter within the meaning of Rule 145(c) of the Securities
Act of 1933, the reoffering prospectus will contain the information
called for by the applicable registration form for reofferings by
persons who may be deemed underwriters, in addition to the information
called for by the other items of the applicable form.
(2) The undersigned Registrant agrees that every prospectus that is filed
under paragraph (1) above will be filed as a part of an amendment to the
registration statement and will not be used until the amendment is
effective, and that, in determining any liability under the Securities
Act of 1933, each post-effective amendment shall be deemed to be a new
registration statement for the securities offered therein, and the
offering of the securities at that time shall be deemed to be the
initial bona fide offering of them.
(3) The undersigned Registrant agrees to file, by post-effective amendment,
an Opinion of Counsel or a copy of an IRS ruling supporting the tax
consequences of the reorganization within a reasonable time after
receipt of such opinion or ruling.
C-3
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed on behalf of the Registrant in the City
of Hartford and State of Connecticut on the 4th day of January 2000.
Phoenix Strategic Equity Series Fund
By: /s/ Philip R. McLoughlin
-----------------------------------
Name: Philip R. McLoughlin
Title: President
As required by the Securities Act of 1933, this Registration Statement
has been signed by the following persons in the capacities and on the dates
indicated.
<TABLE>
<CAPTION>
Signature Title
--------- -----
<S> <C>
- -----------------------------------
Robert Chesek* Trustee
- -----------------------------------
E. Virgil Conway* Trustee
/s/ Nancy G. Curtiss
- -----------------------------------
Nancy G. Curtiss Treasurer
- -----------------------------------
Harry Dalzell-Payne* Trustee
- -----------------------------------
Francis E. Jeffries* Trustee
- -----------------------------------
Leroy Keith, Jr.* Trustee
/s/ Philip R. McLoughlin
- -----------------------------------
Philip R. McLoughlin Trustee and President
- -----------------------------------
Everett L. Morris* Trustee
- -----------------------------------
James M. Oates* Trustee
- -----------------------------------
Calvin J. Pedersen* Trustee
- -----------------------------------
Herbert Roth, Jr.* Trustee
- -----------------------------------
Richard E. Segerson* Trustee
</TABLE>
C-4
<PAGE>
<TABLE>
<S> <C>
- -----------------------------------
Lowell P. Weicker, Jr.* Trustee
*By: /s/ Philip R. McLoughlin
------------------------------
</TABLE>
*Philip R. McLoughlin pursuant to powers of attorney filed previously.
C-5
<PAGE>
Exhibit (14)
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Combined Prospectus/
Proxy Statement and Statement of Additional Information constituting parts of
this Registration Statement on Form N-14 (the "Registration Statement") of our
report dated June 11, 1999, relating to the financial statements and financial
highlights of Phoenix Strategic Theme Fund (currency known as Phoenix-Seneca
Strategic Theme Fund, a series of Phoenix Strategic Equity Series Fund)
appearing in the April 30, 1999 Annual Report to Shareholders, and of our report
dated January 21, 1999, relating to the financial statements and financial
highlights of Phoenix Mid Cap Fund (currently known as Phoenix-Seneca Mid Cap
Fund, a series of Phoenix Multi-Portfolio Fund) appearing in the November 30,
1998 Annual Report to Shareholders, which financial statements and financial
highlights are also incorporated by reference into the Registration Statement.
We also consent to the reference to us under the heading "Management and Other
Service Providers" and in Exhibit A, "Agreement and Plan of Reorganization" in
such Combined Prospectus/Proxy Statement. We further consent to the reference to
us under the heading "Financial Highlights" in the Prospectus of Phoenix-Seneca
Strategic Theme Fund dated August 27, 1999 and under the heading "Additional
Information-Independent Accountants" in the Statements of Additional Information
of Phoenix-Seneca Strategic Theme Fund dated August 27, 1999 and of
Phoenix-Seneca Mid Cap Fund dated March 30, 1999 which are incorporated by
reference into the Registration Statement.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 29, 1999
C-7
