<PAGE>
Phoenix Investment Partners
SEMIANNUAL REPORT
OCTOBER 31, 2000
ENGEMANN
-SENECA-
[LOGO]
Phoenix-Engemann
Small Cap Fund
Phoenix-Seneca
Growth Fund
Phoenix-Seneca
Strategic Theme Fund
<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, 2000.
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
OCTOBER 31, 2000
Mutual funds are not insured by the FDIC; are not
deposits or other obligations of a bank and are not
guaranteed by a bank; and are subject to investment
risks, including possible loss of the principal
invested.
1
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Phoenix-Engemann Small Cap Fund........................................... 3
Phoenix-Seneca Growth Fund................................................ 9
Phoenix-Seneca Strategic Theme Fund....................................... 15
Notes to Financial Statements............................................. 22
</TABLE>
2
<PAGE>
PHOENIX-ENGEMANN SMALL CAP FUND
INVESTMENTS AT OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMON STOCKS--88.3%
AIR FREIGHT--0.8%
Expeditors International of Washington,
Inc........................................ 50,000 $ 2,593,750
BIOTECHNOLOGY--6.0%
Aviron(b).................................. 65,000 4,249,375
COR Therapeutics, Inc.(b).................. 102,000 5,763,000
Coulter Pharmaceutical, Inc.(b)............ 30,000 1,149,375
Idec Pharmaceuticals Corp.(b).............. 36,200 7,099,725
Pharmacyclics, Inc.(b)..................... 30,000 1,614,375
------------
19,875,850
------------
CHEMICALS (SPECIALTY)--0.1%
Eden Bioscience Corp.(b)................... 4,650 176,119
COMMUNICATIONS EQUIPMENT--2.0%
Avici Systems, Inc.(b)..................... 29,960 1,299,515
Elastic Networks, Inc.(b).................. 69,960 432,877
Endwave Corporation........................ 11,200 161,000
McData Corp. Class B(b).................... 35,250 2,938,418
Metawave Communications Corp.(b)........... 65,500 867,875
Vina Technologies, Inc.(b)................. 105,750 938,531
------------
6,638,216
------------
COMPUTERS (HARDWARE)--1.3%
Cosine Communications, Inc.(b)............. 43,725 1,445,658
JNI Corp.(b)............................... 33,120 2,949,750
------------
4,395,408
------------
COMPUTERS (PERIPHERALS)--2.9%
NYFIX, Inc.(b)............................. 244,000 9,638,000
COMPUTERS (SOFTWARE & SERVICES)--18.6%
Agile Software Corp.(b).................... 64,400 4,854,150
Aspsecure.com Corp.(b)..................... 180,000 585,000
BEA Systems, Inc.(b)....................... 225,000 16,143,750
C-bridge Internet Solutions, Inc.(b)....... 59,000 870,250
Commerce One, Inc.(b)...................... 90,000 5,776,875
Extensity, Inc.(b)......................... 100,500 1,281,375
Informax, Inc.(b).......................... 4,420 122,931
Interwoven, Inc.(b)........................ 60,000 6,045,000
Keynote Systems, Inc.(b)................... 103,000 2,472,000
LivePerson, Inc.(b)........................ 208,000 481,000
Opnet Technologies, Inc.(b)................ 29,375 1,026,289
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)--CONTINUED
Peregrine Systems, Inc.(b)................. 220,000 $ 5,280,000
Precise Software Solutions Ltd.(b)......... 71,000 1,624,125
Predictive Systems, Inc.(b)................ 90,000 1,248,750
PurchasePro.com, Inc.(b)................... 101,000 2,727,000
Retek, Inc.(b)............................. 20,000 788,750
Silverstream Software, Inc.(b)............. 31,000 697,500
Software Technologies Corp.(b)............. 150,000 2,550,000
StorageNetworks, Inc.(b)................... 24,000 1,522,500
Synquest, Inc.(b).......................... 117,500 1,946,094
Ulticom, Inc.(b)........................... 62,825 2,999,894
Vastera, Inc.(b)........................... 46,460 824,665
------------
61,867,898
------------
CONSUMER FINANCE--3.1%
Metris Cos., Inc........................... 320,000 10,360,000
ELECTRIC COMPANIES--1.1%
Tnpc, Inc.................................. 224,010 3,724,166
ELECTRICAL EQUIPMENT--0.6%
Active Power, Inc.(b)...................... 5,875 223,984
PECO II, Inc............................... 46,745 1,840,584
------------
2,064,568
------------
ELECTRONICS (INSTRUMENTATION)--3.9%
Aurora Biosciences Corp.(b)................ 19,000 1,157,812
Bruker Daltonics, Inc.(b).................. 52,875 1,810,969
Caliper Technologies(b).................... 38,000 2,142,250
Ciphergen Biosystems, Inc.(b).............. 37,430 1,160,330
Illumina, Inc.(b).......................... 39,950 1,298,375
Ixia, Inc.(b).............................. 4,480 105,000
Rudolph Technologies, Inc.(b).............. 140,000 5,460,000
------------
13,134,736
------------
ELECTRONICS (SEMICONDUCTORS)--11.8%
Applied Micro Circuits Corp.(b)............ 220,000 16,802,500
Elantec Semiconductor, Inc.(b)............. 22,240 2,474,200
Micrel, Inc.(b)............................ 180,000 8,145,000
NETsilicon, Inc.(b)........................ 150,000 2,128,125
Oplink Communications, Inc.(b)............. 26,810 653,494
Quicklogic Corp.(b)........................ 187,000 1,659,625
Silicon Storage Technology, Inc.(b)........ 100,000 2,275,000
Stanford Microdevices, Inc.(b)............. 18,750 469,922
</TABLE>
See Notes to Financial Statements 3
<PAGE>
Phoenix-Engemann Small Cap Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
ELECTRONICS (SEMICONDUCTORS)--CONTINUED
TriQuint Semiconductor, Inc.(b)............ 120,000 $ 4,597,500
------------
39,205,366
------------
ENGINEERING & CONSTRUCTION--0.8%
SBA Communications Corp.(b)................ 48,000 2,406,000
Viasource Communications, Inc.(b).......... 46,765 216,288
------------
2,622,288
------------
EQUIPMENT (SEMICONDUCTORS)--1.1%
Cymer, Inc.(b)............................. 146,000 3,650,000
FINANCIAL (DIVERSIFIED)--2.3%
Federal Agricultural Mortgage Corp. Class
C(b)....................................... 211,000 4,615,625
Pinnacle Holdings, Inc.(b)................. 200,000 3,150,000
------------
7,765,625
------------
FOODS--0.4%
Charles River Laboratories International,
Inc.(b).................................... 48,000 1,260,000
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--2.2%
Inhale Therapeutic Systems, Inc.(b)........ 80,000 3,980,000
Ista Pharmaceuticals, Inc.(b).............. 57,200 629,200
Large Scale Biology Corp.(b)............... 9,400 174,487
Medicines Co. (The)(b)..................... 47,000 1,415,875
Pain Therapeutics, Inc.(b)................. 48,000 1,029,000
Tanox, Inc.(b)............................. 5,875 218,844
------------
7,447,406
------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--2.6%
Affymetrix, Inc.(b)........................ 35,000 1,938,125
Curon Medical, Inc.(b)..................... 66,540 756,892
MiniMed, Inc.(b)........................... 60,000 4,376,250
Staar Surgical Co.(b)...................... 77,840 1,089,760
Vascular Solutions, Inc.(b)................ 28,800 586,800
------------
8,747,827
------------
HEALTH CARE (SPECIALIZED SERVICES)--1.6%
Arena Pharmaceuticals, Inc.(b)............. 47,000 1,642,063
Deltagen, Inc.(b).......................... 35,250 559,594
Omnicare, Inc.............................. 145,000 2,537,500
Variagenics, Inc.(b)....................... 25,200 415,800
------------
5,154,957
------------
INVESTMENT MANAGEMENT--5.9%
Gabelli Asset Management, Inc. Class
A(b)....................................... 241,500 8,694,000
Stilwell Financial, Inc.................... 240,000 10,755,000
------------
19,449,000
------------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
LEISURE TIME (PRODUCTS)--0.9%
Meade Instruments Corp.(b)................. 170,000 $ 3,113,125
OIL & GAS (DRILLING & EQUIPMENT)--0.3%
Grey Wolf, Inc.(b)......................... 200,000 925,000
OIL & GAS (EXPLORATION & PRODUCTION)--2.0%
Barrett Resources Corp.(b)................. 55,000 2,000,625
Forest Oil Corp.(b)........................ 62,000 856,375
Houston Exploration Co.(b)................. 65,000 1,462,500
Louis Dreyfus Natural Gas Co............... 77,000 2,468,813
------------
6,788,313
------------
RESTAURANTS--2.8%
California Pizza Kitchen, Inc.(b).......... 23,500 822,500
Cheesecake Factory, Inc. (The)(b).......... 195,000 8,640,938
------------
9,463,438
------------
RETAIL (BUILDING SUPPLIES)--0.5%
Fastenal Co................................ 28,000 1,608,250
RETAIL (DISCOUNTERS)--0.0%
99 Cents Only Stores(b).................... 2 45
RETAIL (FOOD CHAINS)--1.9%
Smart & Final, Inc.(b)..................... 303,832 2,088,845
Whole Foods Market, Inc.(b)................ 95,000 4,393,750
------------
6,482,595
------------
RETAIL (SPECIALTY)--2.3%
Cost Plus, Inc.(b)......................... 270,000 7,560,000
RETAIL (SPECIALTY-APPAREL)--1.2%
Children's Place Retail Stores, Inc.
(The)(b)................................... 148,000 3,838,750
SERVICES (ADVERTISING/MARKETING)--0.2%
Women.com Networks, Inc.(b)................ 455,930 669,647
SERVICES (COMMERCIAL & CONSUMER)--5.0%
Corporate Executive Board Co. (The)(b)..... 175,000 8,071,875
Edison Schools, Inc.(b).................... 58,750 1,611,953
Energy Exploration Technology(b)........... 127,000 1,714,500
MIPS Technologies, Inc. Class A(b)......... 90,000 3,611,250
Universal Access, Inc.(b).................. 66,300 969,638
Universal Compression Holdings............. 22,372 645,992
------------
16,625,208
------------
SERVICES (COMPUTER SYSTEMS)--1.1%
Sapient Corp.(b)........................... 100,000 3,556,250
SERVICES (FACILITIES & ENVIRONMENTAL)--0.4%
Tetra Tech, Inc.(b)........................ 34,000 1,181,500
</TABLE>
4 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Small Cap Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
TELECOMMUNICATIONS (LONG DISTANCE)--0.6%
Winstar Communications, Inc.(b)............ 96,000 $ 1,872,000
-----------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $179,050,752) 293,455,301
-----------------------------------------------------------------------
FOREIGN COMMON STOCKS--8.4%
COMMUNICATIONS EQUIPMENT--1.8%
Research in Motion Ltd. (Canada)(b)........ 60,000 6,000,000
COMPUTERS (SOFTWARE & SERVICES)--0.3%
IONA Technologies PLC ADR (Ireland)(b)..... 16,000 1,052,000
ELECTRICAL EQUIPMENT--1.7%
Flextronics International Ltd.
(Singapore)(b)............................. 140,000 5,320,000
Hydrogenics Corp. (Canada)(b).............. 44,860 541,124
------------
5,861,124
------------
ELECTRONICS (INSTRUMENTATION)--0.4%
Exfo Electro-Optical Engineering, Inc.
(Canada)(b)................................ 35,100 1,338,187
ELECTRONICS (SEMICONDUCTORS)--0.8%
C-Mac Industries, Inc. (Canada)(b)......... 47,000 2,608,500
INSURANCE (LIFE/HEALTH)--1.4%
London Pacific Group Ltd. ADR (United
Kingdom)................................... 322,800 4,559,550
OIL & GAS (DRILLING & EQUIPMENT)--0.2%
Precision Drilling Corp. (Canada)(b)....... 25,000 715,625
OIL & GAS (EXPLORATION & PRODUCTION)--1.8%
Encal Energy Ltd. (Canada)(b).............. 968,800 5,867,709
-----------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $15,184,528) 28,002,695
-----------------------------------------------------------------------
PREFERRED STOCKS--0.5%
COMMUNICATIONS EQUIPMENT--0.3%
Metro Optix, Inc. Series B Pfd.(b)(c)...... 84,848 839,995
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.2%
Micro Photonix Series C Pfd.(b)(c)......... 114,009 720,001
-----------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $1,559,995) 1,559,996
-----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ------ ------------
<S> <C> <C> <C>
CONVERTIBLE BONDS--0.3%
COMMUNICATIONS EQUIPMENT--0.3%
Cyras Systems, Inc. 144A 4.5%,
8/15/05(d).......................... NR $ 587 $ 645,700
Kestrel Solutions, Inc. 144A 5.50%,
7/15/05(d).......................... NR 480 475,200
---------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS
(IDENTIFIED COST $1,067,000) 1,120,900
---------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--97.5%
(IDENTIFIED COST $196,862,275) 324,138,892
---------------------------------------------------------------------
SHORT-TERM OBLIGATIONS--2.1%
COMMERCIAL PAPER--2.1%
Household Finance Corp. 6.62%,
11/1/00............................. A-1 6,895 6,895,000
---------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $6,895,000) 6,895,000
---------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--99.6%
(IDENTIFIED COST $203,757,275) 331,033,892(a)
Cash and receivables, less liabilities--0.4% 1,233,034
------------
NET ASSETS--100.0% $332,266,926
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $148,599,680 and gross
depreciation of $22,293,673 for federal income tax purposes. At October 31,
2000, the aggregate cost of securities for federal income tax purposes was
$204,727,885.
(b) Non-income producing.
(c) Security valued at fair value as determined in good faith by or under the
direction of the Trustees.
(d) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31,
2000, these securities amounted to a value of $1,120,900 or 0.3% of net
assets.
See Notes to Financial Statements 5
<PAGE>
Phoenix-Engemann Small Cap Fund
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $203,757,275) $ 331,033,892
Cash 2,123
Receivables
Investment securities sold 5,657,946
Fund shares sold 3,244,280
Interest 12,421
Prepaid expenses 1,801
--------------
Total assets 339,952,463
--------------
LIABILITIES
Payables
Investment securities purchased 6,934,642
Fund shares repurchased 184,000
Investment advisory fee 215,517
Distribution fee 162,128
Transfer agent fee 124,815
Financial agent fee 24,278
Trustees' fee 10,259
Accrued expenses 29,898
--------------
Total liabilities 7,685,537
--------------
NET ASSETS $ 332,266,926
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 144,706,246
Undistributed net investment loss (2,458,738)
Accumulated net realized gain 62,742,801
Net unrealized appreciation 127,276,617
--------------
NET ASSETS $ 332,266,926
==============
CLASS A
Shares of beneficial interest outstanding,
$0.0001 par value, unlimited authorization
(Net Assets $193,577,992) 6,402,987
Net asset value per share $30.23
Offering price per share $30.23/(1-5.75%) $32.07
CLASS B
Shares of beneficial interest outstanding,
$0.0001 par value, unlimited authorization
(Net Assets $138,688,934) 4,783,462
Net asset value and offering price per share $28.99
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 296,681
Dividends 49,381
--------------
Total investment income 346,062
--------------
EXPENSES
Investment advisory fee 1,288,236
Distribution fee, Class A 247,107
Distribution fee, Class B 729,219
Financial agent 133,977
Transfer agent 302,269
Printing 45,707
Registration 21,081
Custodian 15,392
Professional 10,231
Trustees 8,216
Miscellaneous 7,140
--------------
Total expenses 2,808,575
Custodian fees paid indirectly (3,775)
--------------
Net expenses 2,804,800
--------------
NET INVESTMENT LOSS (2,458,738)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (6,174,293)
Net change in unrealized appreciation (depreciation) on
investments 17,083,784
--------------
NET GAIN ON INVESTMENTS 10,909,491
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 8,450,753
==============
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Phoenix-Engemann Small Cap Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
10/31/00 Year Ended
(Unaudited) 4/30/00
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (2,458,738) $ (4,279,400)
Net realized gain (loss) (6,174,293) 98,506,030
Net change in unrealized appreciation
(depreciation) 17,083,784 75,397,017
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 8,450,753 169,623,647
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(1,523,808 and 25,110,060 shares,
respectively) 48,450,852 524,113,700
Cost of shares repurchased (1,445,036
and 26,495,134 shares, respectively) (45,106,149) (561,376,449)
------------ ------------
Total 3,344,703 (37,262,749)
------------ ------------
CLASS B
Proceeds from sales of shares (248,608
and 1,120,897 shares, respectively) 7,341,861 25,694,560
Cost of shares repurchased (415,387
and 2,025,437 shares, respectively) (12,198,453) (43,389,442)
------------ ------------
Total (4,856,592) (17,694,882)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (1,511,889) (54,957,631)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS 6,938,864 114,666,016
NET ASSETS
Beginning of period 325,328,062 210,662,046
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$(2,458,738) AND $0, RESPECTIVELY] $332,266,926 $325,328,062
============ ============
</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
10/31/00 ----------------------------------------------- 10/16/95 TO
(UNAUDITED) 2000 1999 1998 1997 4/30/96
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 29.34 $ 15.74 $ 17.37 $ 14.13 $ 16.74 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.17) (0.31) (0.14)(5) (0.08)(5) (0.05)(5) (0.04)(1)(5)
Net realized and unrealized gain
(loss) 1.06 13.91 (0.88) 6.80 (2.53) 6.79
-------- -------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.89 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 0.89 13.60 (1.63) 3.24 (2.61) 6.74
-------- -------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 30.23 $ 29.34 $ 15.74 $ 17.37 $ 14.13 $ 16.74
======== ======== ======== ======== ======== =======
Total return(2) 3.03 %(4) 86.40% (5.66)% 52.33 % (15.43)% 67.48 %(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $193,578 $185,533 $121,313 $203,560 $155,089 $98,372
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.32 %(3)(6) 1.38 %(6) 1.46 %(6) 1.31 % 1.37 % 1.50 %(3)
Net investment income (loss) (1.12)%(3) (1.22)% (0.95)% (0.48)% (0.28)% (0.53)%(3)
Portfolio turnover 37 %(4) 113 % 276% 498% 325% 103 %(4)
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED APRIL 30 INCEPTION
10/31/00 ----------------------------------------------- 10/16/95 TO
(UNAUDITED) 2000 1999 1998 1997 4/30/96
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 28.24 $ 15.26 $ 16.99 $ 13.98 $ 16.68 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.28) (0.47) (0.25)(5) (0.21)(5) (0.17)(5) (0.09)(1)(5)
Net realized and unrealized gain
(loss) 1.03 13.45 (0.87) 6.70 (2.50) 6.77
-------- -------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.75 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 0.75 12.98 (1.73) 3.01 (2.70) 6.68
-------- -------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 28.99 $ 28.24 $ 15.26 $ 16.99 $ 13.98 $ 16.68
======== ======== ======== ======== ======== =======
Total return(2) 2.66 %(4) 85.06% (6.39)% 51.16 % (16.03)% 66.80 %(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $138,689 $139,795 $89,349 $147,785 $97,647 $45,168
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.07 %(3)(6) 2.13 %(6) 2.21 %(6) 2.06 % 2.12 % 2.26 %(3)
Net investment income (loss) (1.87)%(3) (1.97)% (1.70)% (1.22)% (1.03)% (1.44)%(3)
Portfolio turnover 37 %(4) 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.
8 See Notes to Financial Statements
<PAGE>
PHOENIX-SENECA GROWTH FUND
INVESTMENTS AT OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMON STOCKS--92.3%
AEROSPACE/DEFENSE--3.2%
Boeing Co. (The)........................ 167,790 $ 11,378,259
BANKS (MAJOR REGIONAL)--3.4%
Mellon Financial Corp................... 250,700 12,096,275
BEVERAGES (NON-ALCOHOLIC)--2.9%
Coca-Cola Co. (The)..................... 173,210 10,457,554
BROADCASTING (TELEVISION, RADIO & CABLE)--4.9%
Clear Channel Communications, Inc.(b)... 83,851 5,036,301
General Motors Corp. Class H(b)......... 386,370 12,518,388
------------
17,554,689
------------
COMMUNICATIONS EQUIPMENT--4.5%
Corning, Inc............................ 70,840 5,419,260
JDS Uniphase Corp.(b)................... 8,410 684,889
Scientific-Atlanta, Inc................. 143,030 9,788,616
------------
15,892,765
------------
COMPUTERS (HARDWARE)--4.6%
Extreme Networks, Inc.(b)............... 5,000 414,688
Palm, Inc.(b)........................... 166,870 8,937,974
Sun Microsystems, Inc.(b)............... 64,010 7,097,109
------------
16,449,771
------------
COMPUTERS (NETWORKING)--3.3%
Cisco Systems, Inc.(b).................. 217,182 11,700,680
COMPUTERS (PERIPHERALS)--2.5%
Centennial Technologies, Inc.(b)........ 597 10,597
EMC Corp.(b)............................ 97,950 8,723,672
------------
8,734,269
------------
COMPUTERS (SOFTWARE & SERVICES)--4.3%
Microsoft Corp.(b)...................... 147,520 10,160,440
Oracle Corp.(b)......................... 152,710 5,039,430
------------
15,199,870
------------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
CONSUMER FINANCE--3.5%
MBNA Corp............................... 327,790 $ 12,312,612
ELECTRIC COMPANIES--3.9%
Duke Energy Corp........................ 87,140 7,532,164
Southern Energy, Inc.(b)................ 230,050 6,268,862
------------
13,801,026
------------
ELECTRICAL EQUIPMENT--4.2%
General Electric Co..................... 269,640 14,779,642
ELECTRONICS (SEMICONDUCTORS)--3.2%
Intel Corp.............................. 229,760 10,339,200
PMC-Sierra, Inc. (b).................... 6,900 1,169,550
------------
11,508,750
------------
FINANCIAL (DIVERSIFIED)--5.9%
American Express Co..................... 183,140 10,988,400
Citigroup, Inc.......................... 192,213 10,115,209
------------
21,103,609
------------
HEALTH CARE (DIVERSIFIED)--3.2%
Johnson & Johnson....................... 123,660 11,392,177
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--6.7%
Merck & Co., Inc........................ 131,220 11,801,599
Pfizer, Inc............................. 281,840 12,171,965
------------
23,973,564
------------
HEALTH CARE (HOSPITAL MANAGEMENT)--3.4%
HCA-The Healthcare Co................... 298,190 11,908,963
HOUSEHOLD PRODUCTS (NON-DURABLE)--2.7%
Procter & Gamble Co. (The).............. 133,830 9,560,481
INSURANCE (MULTI-LINE)--3.0%
American International Group, Inc....... 108,490 10,632,020
NATURAL GAS--3.3%
El Paso Energy Corp..................... 188,690 11,828,504
OIL & GAS (DRILLING & EQUIPMENT)--5.3%
Diamond Offshore Drilling, Inc.......... 287,770 9,946,051
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Phoenix-Seneca Growth Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
OIL & GAS (DRILLING & EQUIPMENT)--CONTINUED
Halliburton Co.......................... 240,600 $ 8,917,237
------------
18,863,288
------------
RETAIL (DRUG STORES)--2.7%
CVS Corp................................ 182,760 9,674,858
RETAIL (GENERAL MERCHANDISE)--2.1%
Wal-Mart Stores, Inc.................... 161,830 7,343,036
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--2.1%
Nextel Communications, Inc. Class
A(b).................................... 197,540 7,592,944
TELEPHONE--3.5%
SBC Communications, Inc................. 216,090 12,465,692
--------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $284,275,939) 328,205,298
--------------------------------------------------------------------
FOREIGN COMMON STOCKS--4.0%
COMMUNICATIONS EQUIPMENT--4%
Nortel Networks Corp. (Canada).......... 115,670 5,262,985
TyCom Ltd. (Bermuda)(b)................. 264,100 8,847,350
--------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $13,017,043) 14,110,335
--------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--96.3%
(IDENTIFIED COST $297,292,982) 342,315,633
--------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ------- -----------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--3.9%
COMMERCIAL PAPER--3.9%
Greenwich Funding Corp. 6.54%,
11/1/00............................. A-1+ $ 4,005 $ 4,005,000
Enterprise Funding Corp. 6.52%,
11/2/00............................. A-1+ 565 564,898
Sara Lee Corp. 6.55%, 11/2/00....... A-1+ 2,000 1,999,636
Wal-Mart Stores, Inc. 6.55%,
11/3/00............................. A-1+ 1,285 1,284,532
Ford Motor Credit Co. 6.48%,
11/7/00............................. A-1 3,000 2,996,760
Gannett Co., Inc. 6.50%, 11/10/00... A-1 3,000 2,995,125
---------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $13,845,951) 13,845,951
---------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--100.2%
(IDENTIFIED COST $311,138,933) 356,161,584(a)
Cash and receivables, less liabilities--(0.2%) (611,953)
-----------
NET ASSETS--100.0% $355,549,631
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $56,677,787 and gross
depreciation of $11,772,157 for federal income tax purposes. At October 31,
2000, the aggregate cost of securities for federal income tax purposes was
$311,255,954.
(b) Non-income producing.
10 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Growth Fund
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $311,138,933) $ 356,161,584
Cash 3,242
Receivables
Investment securities sold 4,867,404
Fund shares sold 520,595
Dividends and interest 228,809
Prepaid expenses 2,275
--------------
Total assets 361,783,909
--------------
LIABILITIES
Payables
Investment securities purchased 5,656,558
Fund shares repurchased 138,891
Investment advisory fee 207,036
Distribution fee 85,078
Transfer agent fee 59,167
Financial agent fee 24,721
Trustees' fee 10,259
Accrued expenses 52,568
--------------
Total liabilities 6,234,278
--------------
NET ASSETS $ 355,549,631
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 279,880,175
Undistributed net investment loss (515,509)
Accumulated net realized loss 31,162,314
Net unrealized appreciation 45,022,651
--------------
NET ASSETS $ 355,549,631
==============
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization
(Net Assets $38,101,082) 1,770,787
Net asset value and offering price per share $21.52
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization
(Net Assets $285,904,523) 13,611,705
Net asset value per share $21.00
Offering price per share $21.00/(1-5.75%) $22.28
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization
(Net Assets $17,807,540) 871,789
Net asset value and offering price per share $20.43
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization
(Net Assets $13,736,486) 673,969
Net asset value and offering price per share $20.38
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 1,193,674
Dividends 419,397
Foreign taxes withheld (1,135)
--------------
Total investment income 1,611,936
--------------
EXPENSES
Investment advisory fee 1,210,944
Distribution fee, Class A 347,150
Distribution fee, Class B 79,450
Distribution fee, Class C 59,755
Financial agent fee 139,170
Transfer agent 177,236
Registration 59,683
Professional 19,018
Printing 17,703
Custodian 11,894
Trustees 1,534
Miscellaneous 3,908
--------------
Total expenses 2,127,445
--------------
NET INVESTMENT LOSS (515,509)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 31,307,080
Net change in unrealized appreciation (depreciation) on
investments (21,679,139)
--------------
NET GAIN ON INVESTMENTS 9,627,941
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 9,112,432
==============
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Phoenix-Seneca Growth Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Seven Months
10/31/00 Ended
(Unaudited) 4/30/00
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (515,509) $ (192,093)
Net realized gain (loss) 31,307,080 7,460,846
Net change in unrealized appreciation
(depreciation) (21,679,139) 10,116,643
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 9,112,432 17,385,396
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class X (1,822,653) (4,159,508)
Net realized gains, Class A (2,175,818) (3,991,659)
Net realized gains, Class B (495,045) (733,817)
Net realized gains, Class C (480,308) (651,429)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (4,973,824) (9,536,413)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (47,269
and 82,728 shares, respectively) 1,061,882 1,885,353
Net asset value of shares issued from
reinvestment of distributions
(87,293 and 189,191 shares,
respectively) 1,814,815 4,124,386
Cost of shares repurchased (149,153
and 262,967 shares, respectively) (3,601,269) (5,710,606)
------------ ------------
Total (724,572) 299,133
------------ ------------
CLASS A
Proceeds from sales of shares (620,939
and 835,146 shares, respectively) 13,399,736 18,496,399
Net asset value of shares issued in
conjunction with Plan of
Reorganization
(11,246,703 and 0 shares,
respectively) (See Note 5) 227,975,588 --
Net asset value of shares issued from
reinvestment of distributions
(102,387 and 183,997 shares,
respectively) 2,080,499 3,928,347
Cost of shares repurchased (543,377
and 463,295 shares, respectively) (10,698,730) (9,878,135)
------------ ------------
Total 232,757,093 12,546,611
------------ ------------
CLASS B
Proceeds from sales of shares (251,286
and 268,528 shares, respectively) 5,263,033 5,843,443
Net asset value of shares issued in
conjunction with Plan of
Reorganization
(161,028 and 0 shares, respectively)
(See Note 5) 3,185,571 --
Net asset value of shares issued from
reinvestment of distributions
(20,372 and 29,013 shares,
respectively) 404,180 607,535
Cost of shares repurchased (43,685 and
36,556 shares, respectively) (1,042,335) (786,499)
------------ ------------
Total 7,810,449 5,664,479
------------ ------------
CLASS C
Proceeds from sales of shares (202,911
and 365,168 shares, respectively) 4,230,771 7,875,964
Net asset value of shares issued from
reinvestment of distributions
(20,607 and 27,094 shares,
respectively) 407,807 566,265
Cost of shares repurchased (15,619 and
20,738 shares, respectively) (341,331) (453,959)
------------ ------------
Total 4,297,247 7,988,270
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS 244,140,217 26,498,493
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS 248,278,825 34,347,476
NET ASSETS
Beginning of period 107,270,806 72,923,330
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$(515,509) AND $0, RESPECTIVELY] $355,549,631 $107,270,806
============ ============
</TABLE>
12 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 X
-------------------------------------------------------------------------
SIX MONTHS SEVEN FROM
ENDED MONTHS YEAR ENDED SEPTEMBER 30, INCEPTION
10/31/00 ENDED ------------------------------- 3/8/96 TO
(UNAUDITED) 4/30/00 1999 1998 1997 9/30/96
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 22.31 $ 19.92 $ 16.46 $ 16.43 $ 13.74 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) --(1) (0.01)(1) (0.04)(1) 0.00(1) 0.03 0.03
Net realized and unrealized gain (loss) 0.22 4.94 5.11 1.28 3.50 3.71
------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.22 4.93 5.07 1.28 3.53 3.74
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- (0.02) (0.07) --
Dividends from net realized gains (1.01) (2.54) (1.61) (1.23) (0.77) --
------- ------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS (1.01) (2.54) (1.61) (1.25) (0.84) --
------- ------- ------- ------- ------- -------
Change in net asset value (0.79) 2.39 3.46 0.03 2.69 3.74
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 21.52 $ 22.31 $ 19.92 $ 16.46 $ 16.43 $ 13.74
======= ======= ======= ======= ======= =======
Total return(2) 1.06 %(4) 25.04 %(4) 32.19 % 8.48 % 27.27 % 37.40 %(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $38,101 $40,174 $35,695 $30,713 $34,093 $12,920
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 0.92 %(3) 1.06 %(3) 1.16 % 1.14% 1.52%(5) 0.81%(3)(5)
Net investment income (0.00)%(3) (0.05)%(3) (0.20)% 0.02 % 0.31 % 0.76 %(3)
Portfolio turnover rate 66 %(4) 68 %(4) 169 % 166 % 145.69% 87.66 %(4)
</TABLE>
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------------
SIX MONTHS SEVEN FROM
ENDED MONTHS YEAR ENDED SEPTEMBER 30, INCEPTION
10/31/00 ENDED ------------------------------- 3/8/96 TO
(UNAUDITED) 4/30/00 1999 1998 1997 9/30/96
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 21.83 $ 19.57 $ 16.23 $ 16.28 $ 13.63 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.03)(1) (0.04)(1) (0.09)(1) (0.06)(1) (0.08) --
Net realized and unrealized gain (loss) 0.21 4.84 5.04 1.24 3.50 3.63
-------- ------- ------- ------- ------- ------
TOTAL FROM INVESTMENT OPERATIONS 0.18 4.80 4.95 1.18 3.42 3.63
-------- ------- ------- ------- ------- ------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- -- -- --
Dividends from net realized gains (1.01) (2.54) (1.61) (1.23) (0.77) --
-------- ------- ------- ------- ------- ------
TOTAL DISTRIBUTIONS (1.01) (2.54) (1.61) (1.23) (0.77) --
-------- ------- ------- ------- ------- ------
Change in net asset value (0.83) 2.26 3.34 (0.05) 2.65 3.63
-------- ------- ------- ------- ------- ------
NET ASSET VALUE, END OF PERIOD $ 21.00 $ 21.83 $ 19.57 $ 16.23 $ 16.28 $13.63
======== ======= ======= ======= ======= ======
Total return(2) 0.94 %(4) 24.81 %(4) 31.89 % 7.93% 26.51 % 36.30 %(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $285,905 $46,727 $31,001 $17,364 $6,013 $466
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.17 %(3) 1.31 %(3) 1.44 % 1.55% 2.48 %(6) 1.46 %(3)(6)
Net investment income (0.26)%(3) (0.29)%(3) (0.49)% (0.36)% (0.62)% 0.16 %(3)
Portfolio turnover rate 66 %(4) 68 %(4) 169 % 166 % 145.69 % 87.66%(4)
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charge is not reflected in the total return calculation.
(3) Annualized.
(4) Not annualized.
(5) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.52% and
3.49% for the periods ended September 30, 1997 and 1996, respectively.
(6) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 2.63% and
14.01% for the periods ended September 30, 1997 and 1996, respectively.
See Notes to Financial Statements 13
<PAGE>
Phoenix-Seneca Growth Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------------------
SIX MONTHS SEVEN FROM
ENDED MONTHS INCEPTION
10/31/00 ENDED 7/1/98 TO
(UNAUDITED) 4/30/00 YEAR ENDED 9/30/99 9/30/98
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 21.34 $ 19.28 $16.19 $18.71
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.10)(1) (0.17)(1) (0.31)(1) (0.04)(1)
Net realized and unrealized gain (loss) 0.20 4.77 5.01 (2.48)
------- ------- ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.10 4.60 4.70 (2.52)
------- ------- ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- --
Dividends from net realized gains (1.01) (2.54) (1.61) --
------- ------- ------ ------
TOTAL DISTRIBUTIONS (1.01) (2.54) (1.61) --
------- ------- ------ ------
Change in net asset value (0.91) 2.06 3.09 (2.52)
------- ------- ------ ------
NET ASSET VALUE, END OF PERIOD $ 20.43 $ 21.34 $19.28 $16.19
======= ======= ====== ======
Total return(2) 0.57 %(4) 24.10 %(4) 30.31 % (13.47)%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $17,808 $10,431 $4,395 $519
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.93 %(3) 2.42 %(3) 2.60 % 2.60 %(3)(5)
Net investment income (1.00)%(3) (1.39)%(3) (1.66)% (1.12)%(3)
Portfolio turnover rate 66 %(4) 68 %(4) 169 % 166 %(4)
</TABLE>
<TABLE>
<CAPTION>
CLASS C
-------------------------------------------------------------
SIX MONTHS SEVEN FROM
ENDED MONTHS INCEPTION
10/31/00 ENDED 7/1/98 TO
(UNAUDITED) 4/30/00 YEAR ENDED 9/30/99 9/30/98
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 21.29 $19.25 $ 16.18 $18.71
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.10)(1) (0.19)(1) (0.32)(1) (0.06)(1)
Net realized and unrealized gain (loss) 0.20 4.77 5.00 (2.47)
------- ------ ------- ------
TOTAL FROM INVESTMENT OPERATIONS 0.10 4.58 4.68 (2.53)
------- ------ ------- ------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- --
Dividends from net realized gains (1.01) (2.54) (1.61) --
------- ------ ------- ------
TOTAL DISTRIBUTIONS (1.01) (2.54) (1.61) --
------- ------ ------- ------
Change in net asset value (0.91) 2.04 3.07 (2.53)
------- ------ ------- ------
NET ASSET VALUE, END OF PERIOD $ 20.38 $21.29 $ 19.25 $16.18
======= ====== ======= ======
Total return(2) 0.53 %(4) 24.09 %(4) 30.20 % (13.52)%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $13,736 $9,939 $1,833 $126
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.93 %(3) 2.51 %(3) 2.60 % 2.60 %(3)(6)
Net investment income (0.99)%(3) (1.48)%(3) (1.66)% (1.39)%(3)
Portfolio turnover rate 66 %(4) 68 %(4) 169 % 166 %(4)
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charge is not reflected in the total return calculation.
(3) Annualized.
(4) Not annualized.
(5) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 3.46% and
12.48% for the periods ended September 30, 1997 and 1996, respectively.
(6) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 5.67% and
20.24% for the periods ended September 30, 1997 and 1996, respectively.
14 See Notes to Financial Statements
<PAGE>
PHOENIX-SENECA STRATEGIC THEME FUND
INVESTMENTS AT OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMON STOCKS--90.4%
AEROSPACE/DEFENSE--3.3%
Boeing Co. (The)........................... 356,000 $ 24,141,250
BROADCASTING (TELEVISION, RADIO & CABLE)--10.5%
Clear Channel Communications, Inc.(b)...... 224,447 13,480,848
EchoStar Communications Corp.(b)........... 757,500 34,276,875
General Motors Corp. Class H(b)............ 936,300 30,336,120
------------
78,093,843
------------
COMMUNICATIONS EQUIPMENT--9.0%
Corning, Inc............................... 461,670 35,317,755
Scientific-Atlanta, Inc.................... 457,050 31,279,359
------------
66,597,114
------------
COMPUTERS (HARDWARE)--8.9%
Emulex Corp.(b)............................ 116,300 17,081,563
Extreme Networks, Inc.(b).................. 354,070 29,365,681
Sun Microsystems, Inc.(b).................. 178,810 19,825,559
------------
66,272,803
------------
COMPUTERS (PERIPHERALS)--3.8%
EMC Corp.(b)............................... 320,000 28,500,000
COMPUTERS (SOFTWARE & SERVICES)--4.6%
Mercury Interactive Corp.(b)............... 305,450 33,904,950
CONSUMER FINANCE--3.6%
MBNA Corp.................................. 708,630 26,617,914
ELECTRONICS (INSTRUMENTATION)--4.9%
PerkinElmer, Inc........................... 307,400 36,734,300
ELECTRONICS (SEMICONDUCTORS)--5.4%
Fairchild Semiconductor Corp. Class A(b)... 760,900 16,026,456
Intel Corp................................. 533,080 23,988,600
------------
40,015,056
------------
ENTERTAINMENT--3.4%
Viacom, Inc. Class B(b).................... 438,000 24,911,250
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
FINANCIAL (DIVERSIFIED)--7.6%
American Express Co........................ 424,000 $ 25,440,000
Citigroup, Inc............................. 581,466 30,599,648
------------
56,039,648
------------
INSURANCE (PROPERTY-CASUALTY)--3.7%
MGIC Investment Corp....................... 399,240 27,198,225
OIL & GAS (DRILLING & EQUIPMENT)--15.6%
Halliburton Co............................. 651,800 24,157,338
Nabors Industries, Inc.(b)................. 775,750 39,485,675
Santa Fe International Corp................ 760,560 27,760,440
Weatherford International, Inc.(b)......... 671,190 24,498,435
------------
115,901,888
------------
SERVICES (COMMERCIAL & CONSUMER)--3.1%
Crown Castle International Corp.(b)........ 767,920 23,277,575
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--3.0%
Nextel Communications, Inc. Class A(b)..... 572,700 22,013,156
-----------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $559,604,207) 670,218,972
-----------------------------------------------------------------------
FOREIGN COMMON STOCKS--6.1%
COMMUNICATIONS EQUIPMENT--3.1%
Nortel Networks Corp. (Canada)............. 507,649 23,098,030
TELEPHONE--3.0%
TyCom Ltd. (Bermuda)(b).................... 657,900 22,039,650
-----------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $45,666,925) 45,137,680
-----------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--96.5%
(IDENTIFIED COST $605,271,132) 715,356,652
-----------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements 15
<PAGE>
Phoenix-Seneca Strategic Theme Fund
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--3.5%
COMMERCIAL PAPER--3.5%
Koch Industries, Inc. 6.62%,
11/01/00............................ A-1+ $ 4,270 $ 4,270,000
Sara Lee Corp. 6.5%, 11/2/00........ A-1+ 2,545 2,544,540
Gannett Co. 6.49%, 11/3/00.......... A-1 3,590 3,588,706
General Electric Capital Corp.
6.49%, 11/7/00...................... A-1+ 5,000 4,994,592
Household Finance Corp. 6.55%,
11/10/00............................ A-1 6,765 6,753,922
National Rural Utilities Corp.
6.48%, 11/13/00..................... A-1+ 2,375 2,369,870
General Electric Capital Corp.
6.56%, 12/6/00...................... A-1+ 1,500 1,491,050
----------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $26,012,063) 26,012,680
----------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--100.0%
(IDENTIFIED COST $631,283,195) 741,369,332(a)
Cash and receivables, less liabilities--0.0% 309,430
------------
NET ASSETS--100.0% $741,678,762
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $153,917,867 and gross
depreciation of $44,024,274 for federal income tax purposes. At October 31,
2000, the aggregate cost of securities for federal income tax purposes was
$631,475,739.
(b) Non-income producing.
16 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Strategic Theme Fund
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $631,283,195) $ 741,369,332
Cash 1,336
Receivables
Fund shares sold 1,985,323
Dividends and interest 43,036
Prepaid expenses 5,776
--------------
Total assets 743,404,803
--------------
LIABILITIES
Payables
Fund shares repurchased 611,648
Investment advisory fee 476,865
Distribution fee 261,020
Transfer agent fee 192,226
Financial agent fee 32,954
Trustees' fee 10,259
Accrued expenses 141,069
--------------
Total liabilities 1,726,041
--------------
NET ASSETS $ 741,678,762
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 513,144,536
Undistributed net investment loss (4,195,557)
Accumulated net realized gain 122,643,646
Net unrealized appreciation 110,086,137
--------------
NET ASSETS $ 741,678,762
==============
CLASS A
Shares of beneficial interest outstanding,
$0.0001 par value, unlimited authorization
(Net Assets $582,350,384) 27,097,634
Net asset value per share $21.49
Offering price per share $21.49/(1-5.75%) $22.80
CLASS B
Shares of beneficial interest outstanding,
$0.0001 par value, unlimited authorization
(Net Assets $151,972,021) 7,399,754
Net asset value per share and offering per share $20.54
CLASS C
Shares of beneficial interest outstanding,
$0.0001 par value, unlimited authorization
(Net Assets $7,356,357) 358,042
Net asset value per share and offering per share $20.55
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 479,426
Interest 921,622
Foreign taxes withheld (2,426)
--------------
Total investment income 1,398,622
--------------
EXPENSES
Investment advisory fee 2,964,428
Distribution fee, Class A 779,866
Distribution fee, Class B 801,868
Distribution fee, Class C 31,237
Financial agent fee 202,167
Transfer agent fee 526,334
Registration 131,007
Printing 95,186
Custodian 18,292
Professional 17,620
Trustees 12,139
Miscellaneous 14,035
--------------
Total expenses 5,594,179
--------------
NET INVESTMENT LOSS (4,195,557)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 61,555,817
Net change in unrealized appreciation (depreciation) on
investments (97,364,311)
--------------
NET LOSS ON INVESTMENTS (35,808,494)
--------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (40,004,051)
==============
</TABLE>
See Notes to Financial Statements 17
<PAGE>
Phoenix-Seneca Strategic Theme Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
10/31/00 Year Ended
(Unaudited) 4/30/00
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (4,195,557) $ (3,138,804)
Net realized gain (loss) 61,555,817 95,521,350
Net change in unrealized appreciation
(depreciation) (97,364,311) (58,060,755)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (40,004,051) 34,321,791
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A -- (26,637,803)
Net realized gains, Class B -- (20,732,140)
Net realized gains, Class C -- (373,094)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS -- (47,743,037)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(1,620,181 and 4,564,985 shares,
respectively) 36,986,800 93,227,507
Net asset value of shares issued from
Phoenix-Seneca Mid Cap Fund merger
(0 and 19,654,306 shares,
respectively) (See Note 6) -- 510,230,512
Net asset value of shares issued from
reinvestment of distributions
(0 and 1,381,459 shares,
respectively) -- 25,705,072
Cost of shares repurchased (1,972,142
and 4,070,380 shares, respectively) (44,751,800) (83,306,119)
------------ ------------
Total (7,765,000) 545,856,972
------------ ------------
CLASS B
Proceeds from sales of shares (620,387
and 985,214 shares, respectively) 13,574,941 19,346,429
Net asset value of shares issued from
Phoenix-Seneca Mid Cap Fund merger
(0 and 1,280,671 shares,
respectively) (See Note 6) -- 31,929,692
Net asset value of shares issued from
reinvestment of distributions
(0 and 1,071,260 shares,
respectively) -- 19,241,688
Cost of shares repurchased (462,488
and 868,154 shares, respectively) (9,980,647) (17,020,407)
------------ ------------
Total 3,594,294 53,497,402
------------ ------------
CLASS C
Proceeds from sales of shares (152,619
and 196,187 shares, respectively) 3,319,119 4,015,847
Net asset value of shares issued from
reinvestment of distributions
(0 and 18,431 shares, respectively) -- 332,457
Cost of shares repurchased (32,118 and
15,485 shares, respectively) (710,098) (287,819)
------------ ------------
Total 2,609,021 4,060,485
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (1,561,685) 603,414,859
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (41,565,736) 589,993,613
NET ASSETS
Beginning of period 783,244,498 193,250,885
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$(4,195,557) AND $0, RESPECTIVELY] $741,678,762 $783,244,498
============ ============
</TABLE>
18 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 FROM
ENDED YEAR ENDED APRIL 30 INCEPTION
10/31/00 --------------------------------------------- 10/16/95 TO
(UNAUDITED) 2000 1999 1998 1997 4/30/96
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 22.62 $ 18.22 $ 13.70 $ 12.03 $ 12.37 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(5) (0.10) (0.16) (0.11) (0.04) 0.06 0.00(1)
Net realized and unrealized gain
(loss) (1.03) 8.69 6.03 4.03 (0.38) 2.39
-------- -------- -------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS (1.13) 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 (1.13) 4.40 4.52 1.67 (0.34) 2.37
-------- -------- -------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 21.49 $ 22.62 $ 18.22 $ 13.70 $ 12.03 $ 12.37
======== ======== ======== ======= ======= =======
Total return(2) (5.00)%(4) 53.26% 44.91% 36.22% (2.57)% 23.89%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $582,350 $620,919 $107,871 $89,884 $77,827 $33,393
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.26%(3) 1.29%(6) 1.38%(6) 1.33% 1.40% 1.40%(3)
Net investment income (loss) (0.90)%(3) (0.77)% (0.72)% (0.26)% 0.49% (0.09)%(3)
Portfolio turnover 56%(4) 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) 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
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED APRIL 30 INCEPTION
10/31/00 -------------------------------------------- 10/16/95 TO
(UNAUDITED) 2000 1999 1998 1997 4/30/96
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 21.70 $ 17.75 $ 13.46 $ 11.91 $ 12.33 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(5) (0.18) (0.28) (0.22) (0.14) (0.03) (0.06)(1)
Net realized and unrealized gain
(loss) (0.98) 8.36 5.91 3.98 (0.38) 2.40
------- -------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS (1.16) 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 (1.16) 3.95 4.29 1.55 (0.42) 2.33
------- -------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 20.54 $ 21.70 $ 17.75 $ 13.46 $ 11.91 $ 12.33
======= ======== ======= ======= ======= =======
Total return(2) (5.35)%(4) 52.03% 43.98% 35.18% (3.31)% 23.41%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $151,972 $157,169 $84,698 $66,107 $49,843 $11,920
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.01%(3) 2.04%(6) 2.13%(6) 2.08% 2.15% 2.16%(3)
Net investment income (loss) (1.65)%(3) (1.47)% (1.48)% (1.02)% (0.23)% (1.06)%(3)
Portfolio turnover 56%(4) 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) 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-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 ENDED APRIL 30 INCEPTION
10/31/00 ------------------- 11/3/97 TO
(UNAUDITED) 2000 1999 4/30/98
<S> <C> <C> <C> <C>
Net asset value, beginning of period $21.71 $17.75 $13.47 $14.93
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(4) (0.18) (0.29) (0.22) (0.05)
Net realized and unrealized gain
(loss) (0.98) 8.38 5.90 0.88
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS (1.16) 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 (1.16) 3.96 4.28 (1.46)
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $20.55 $21.71 $17.75 $13.47
====== ====== ====== ======
Total return(1) (5.34)%(3) 52.09% 43.87% 7.92%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $7,356 $5,156 $682 $267
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.01%(2) 2.04%(5) 2.13%(5) 2.08%(2)
Net investment income (loss) (1.65)%(2) (1.53)% (1.47)% (0.87)%(2)
Portfolio turnover 56%(3) 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) 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 21
<PAGE>
PHOENIX STRATEGIC EQUITY SERIES FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Effective August 17, 2000 Phoenix Strategic Equity Series Fund (the "Trust")
is organized as a Delaware business trust, (prior to that date, the Trust was
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 Growth Fund also offers
Class C and Class X shares. The Strategic Theme Fund also offers Class C shares.
Effective April 3, 2000, Class A shares are sold with a front-end sales charge
of up to 5.75%. Prior to that date, the maximum sales charge was 4.75% Class B
shares are sold with a contingent deferred sales charge which declines from 5%
to zero depending on the period of time the shares are held. Class C shares are
sold with a 1% contingent deferred sales charge if redeemed within one year of
purchase. All classes of shares have identical voting, dividend, liquidation and
other rights and the same terms and conditions, except that each class bears
different distribution expenses and has exclusive voting rights with respect to
its distribution plan. Income and expenses of 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.
22
<PAGE>
PHOENIX STRATEGIC EQUITY SERIES FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 (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. ("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 Growth
Fund and 0.375% to 0.10% of the average daily net assets of the Strategic Theme
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 $62,229 for Class A shares and deferred
sales charges of $167,482 for Class B shares and $4,776 for Class C shares, for
the six months ended October 31, 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 and 1.00% for Class C 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,
2000, $1,583,013 was earned by the Distributor, $1,312,762 was earned by
unaffiliated participants and $179,877 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. For the six months ended October 31, 2000, financial agent fees
were $475,314 of which PEPCO received $62,580. 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, 2000,
transfer agent fees were $1,005,839 of which PEPCO retained $405,090 which is
net of the fees paid to State Street.
At October 31, 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 X..................... 48 $ 1,057
Growth Fund--Class A..................... 90 1,924
Growth Fund--Class B..................... 14,364 299,780
Growth Fund--Class C..................... 7,043 146,627
</TABLE>
23
<PAGE>
PHOENIX STRATEGIC EQUITY SERIES FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 (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, 2000, aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
Small Cap Fund................... $121,283,415 $128,337,132
Growth Fund...................... 221,334,061 219,803,415
Strategic Theme Fund............. 424,333,936 450,000,061
</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. 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.
On May 12, 2000, the Phoenix Equity Opportunities Fund ("Equity
Opportunities") acquired the assets and liabilities of the Phoenix-Seneca Growth
Fund ("Growth") in a tax-free reorganization in exchange for shares of Equity
Opportunities pursuant to a plan of reorganization approved by the Growth Fund's
shareholders on April 28, 2000. The number and value of shares issued by Equity
Opportunity were in amounts equal to the number and value of shares held by
Growth Fund shareholders as of the reorganization date. The number and value of
shares issued in connection with the reorganization are presented in the
Statement of Changes in Net Assets. Net assets of Equity Opportunities and
Growth Fund as of the reorganization date were $231,161,159 and $104,692,400,
including net unrealized appreciation of $45,778,932 and $18,227,318,
respectively. Total net assets after the reorganization were $335,853,559.
For financial reporting purposes the historical results of Growth Fund will
survive. Concurrent with the reorganization Equity Opportunities was renamed to
Seneca Growth Fund.
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.
24
<PAGE>
RESULTS OF SHAREHOLDER MEETINGS (UNAUDITED)
Special meetings of Shareholders of Phoenix Strategic Equity Series Fund were
held on May 16, 2000 and August 17, 2000, respectively, to approve the following
matters:
1. Approve a new Rule 12b-1 Distribution Plan for Class B Shares.
2. Approve a new Rule 12b-1 Distribution Plan for Class C Shares.
3. Approve an Agreement and Plan of Reorganization which provides for the
reorganization of the Trust into a Delaware business trust.
On the record date of May 16, 2000, the shares outstanding and percentage of the
shares outstanding and entitled to vote that were present by proxy were as
follows:
<TABLE>
<CAPTION>
CLASS OF SHARES SHARES OUTSTANDING PERCENTAGE PRESENT BY PROXY
--------------- ------------------- ----------------------------
<S> <C> <C>
Phoenix-Engemann Small Cap Fund Class B 4,981,722 50.69%
Phoenix-Seneca Growth Fund Class B 370,892 57.52%
Phoenix-Seneca Strategic Theme Fund
Class B 7,197,447 50.68%
Phoenix-Seneca Strategic Theme Fund
Class C 186,735 50.45%
</TABLE>
On the record date of August 17, 2000, the shares outstanding and percentage of
the shares outstanding and entitled to vote that were present by proxy were as
follows:
<TABLE>
<CAPTION>
CLASS OF SHARES SHARES OUTSTANDING PERCENTAGE PRESENT BY PROXY
--------------- ------------------- ----------------------------
<S> <C> <C>
Phoenix-Engemann Small Cap Fund 11,170,171 53.78%
Phoenix-Seneca Growth Fund 16,632,793 61.68%
Phoenix-Seneca Strategic Theme Fund 34,786,333 54.59%
</TABLE>
NUMBER OF VOTES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--------------- ------------ --------------
<S> <C> <C> <C>
1. Approve a new Rule 12b-1 Distribution
Plan for Class B Shares
Phoenix-Engemann Small Cap Fund
Class B 2,281,004 93,113 151,305
Phoenix-Seneca Growth Fund
Class B 180,356 6,902 26,083
Phoenix-Seneca Strategic Theme
Fund Class B 3,216,092 125,199 306,258
2. Approve a new Rule 12b-1 Distribution
Plan for Class C Shares
Phoenix-Seneca Strategic Theme
Fund Class C 85,415 3,166 4,627
3. Approve Amendment and Plan of
Reorganization
Phoenix-Engemann Small Cap Fund 5,604,686 112,255 290,482
Phoenix-Seneca Growth Fund 9,137,072 322,670 799,225
Phoenix-Seneca Strategic Theme
Fund 17,459,121 428,714 1,102,931
</TABLE>
25
<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
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
Malcolm Axon, Vice President
Robert S. Driessen, Vice President
Ron K. Jacks, Vice President
Richard D. Little, Vice President
James E. Mair, 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
56 Prospect Street
Hartford, Connecticut 06115-0480
TRANSFER AGENT
Phoenix Equity Planning Corporation
56 Prospect Street
Hartford, Connecticut 06115-0480
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 150480
Hartford CT 06115-0480
[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.
-----------------
PRSRT STD
U.S. Postage
PAID
Andrew
Associates
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PXP 679 (12/00)
