[FRONT COVER]
P H O E N I X
ANNUAL REPORT
NOVEMBER 30, 1996
Phoenix
Multi-Portfolio Fund
Annual Report
| Tax-Exempt Bond Portfolio
| Mid Cap Portfolio
| International Portfolio
| Real Estate Securities Portfolio
| Emerging Markets Bond Portfolio
- -----------------------------------------------------------
MUTUAL FUNDS, ANNUITIES AND INSURANCE PRODUCTS ARE NOT
DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY ANY BANK, NOR
ARE THEY INSURED BY THE FDIC; THEY ARE SUBJECT TO INVESTMENT
RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
- ------------------------------------------------------------
[LOGOTYPE] PHOENIX
DUFF & PHELPS
<PAGE>
Table of Contents
Page
The Tax-Exempt Bond Portfolio 1
The Mid Cap Portfolio 9
The International Portfolio 16
The Real Estate Securities Portfolio 25
The Emerging Markets Bond Portfolio 32
Notes to Financial Statements 39
<PAGE>
PHOENIX TAX-EXEMPT BOND PORTFOLIO
MARKET AND PORTFOLIO REVIEW
Fund Description
Phoenix Tax-Exempt Bond Portfolio invests in high-quality municipal
securities and seeks to maximize both tax-exempt yield and after-tax total
return. The Fund is well diversified geographically and stresses regions of the
country with the most promising economic prospects.
Investment Environment
Shifting market opinion over the direction of the U.S. economy was
responsible for much of the volatility in interest rates during this latest
twelve-month reporting period. During December and January, the Federal Reserve
cut the Fed Funds Rate in an effort to stimulate what was believed to be a
sluggish economy. Although it was widely anticipated that the Fed would have to
lower rates again, a surprisingly strong February employment report provided
conflicting evidence about the economy's condition. As more information became
available, it became evident that the economy had grown robustly over the first
half of 1996. During this period, interest rates were pushed higher as the
financial markets had to consider the threat of future inflation.
By late summer, the consensus view on Wall Street shifted once again as signs
of more moderate economic growth became increasingly more apparent and concerns
over inflation declined. These signs of a slower economy allowed interest rates
to fall for the remainder of the reporting period. In total, the yield on the
bell weather 30-year Treasury bond ranged from as low as 5.95% to as high as
7.19% over the last twelve months. Despite all these market gyrations, the "long
bond" finished the reporting period at 6.36% -- only 28 basis points higher than
where it was one year ago.
In the municipal market, lower-quality investment grade bonds ("BBB" and "A")
outperformed higher-quality investment grade issues ("AA" and "AAA") over the
last twelve months, as investors reached down the credit spectrum for higher
yields. On the tax-reform front, the election results have calmed investor fears
regarding any radical tax reform -- Bill Clinton was re-elected to another term
and the Republicans maintained control of the Congress. Lastly, the limited
supply of new tax-exempt issues was beneficial from a technical standpoint as
demand for these securities continued to be strong.
Portfolio Review
Despite a challenging bond market environment, the Fund posted solid gains
over this latest reporting cycle. For the twelve-month period ended November 30,
1996, class A shares provided a total return of 4.30% and class B shares
returned 3.60%. These results trailed the Lehman Brothers Municipal Bond Index,
which returned 5.89% over the same period. All of these returns assume
reinvestment of any distributions, but exclude the effect of sales charges.
The Fund's focus on higher-quality credits held back performance during this
latest fiscal reporting period. Despite the relative underperformance of
top-tier investment-grade bonds, we continue to believe that the ongoing fiscal
problems of many municipalities warrants a high-quality portfolio. Additionally,
credit quality spreads remain narrow, making this an unfavorable environment to
take municipal credit risk. As of November 30, 1996, 51% of the portfolio's
assets were rated "AA" or higher, with maturities ranging from intermediate to
long.
Outlook
Moving forward, we believe that the outlook for the municipal bond market and
our Fund appears favorable. At current rate levels, demand for tax-exempt
securities from individuals should be strong as we head into tax season in the
first quarter of 1997. Additionally, increasing investor caution regarding
aggressive equity market valuations may lead to a reallocation of some funds
into tax-exempt securities.
In terms of geographic distribution, the Fund is currently emphasizing the
mid-atlantic, midwest and oil patch states which look attractive from both an
economic and fiscal perspective. Although the U.S. economy appears to be in
excellent health, a number of states and municipalities continue to experience
fiscal difficulties, making issuer selection a critical factor for success. As
always, we will continue to focus on high credit quality assets for the Fund and
carefully monitor the market for attractive investment opportunities.
1
<PAGE>
Tax-Exempt Bond Portfolio
-----------------------------------------------------------------------------
[LINE CHART]
Lehman Phoenix
Brothers Tax-Exempt
Municipal Bond Portfolio
Bond Index* -- Class A
7/15/88 10000 9525
11/30/88 10341 9924
11/30/89 11479 11128
11/30/90 12362 11850
11/30/91 13632 12954
11/30/92 15000 14498
11/30/93 16661 16353
11/30/94 15786 15118
11/30/95 18770 18122
11/30/96 19875 18903
[/LINE CHART]
Average Annual Total Returns
for Periods Ending 11/30/96
<TABLE>
<CAPTION>
From Inception From Inception
7/15/88 to 3/16/94 to
1 Year 5 Years 11/30/96 11/30/96
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
Class A with 4.75% sales
charge -0.66% 6.81% 7.89% --
- --------------------------------------------------------------------------------
Class A at net asset value 4.30% 7.85% 8.52% --
- --------------------------------------------------------------------------------
Class B with CDSC -0.35% -- -- 4.42%
- --------------------------------------------------------------------------------
Class B at net asset value 3.60% -- -- 5.44%
- --------------------------------------------------------------------------------
Lehman Brothers
Municipal Bond Index* 5.89% 7.83% 8.49 %** 6.38%***
- --------------------------------------------------------------------------------
</TABLE>
This chart assumes an initial gross investment of $10,000 made on 7/15/88
(inception of the Fund) for Class A shares. The total return for Class A
shares reflects the maximum sales charge of 4.75% on the initial investment
and assumes reinvestment of dividends and capital gains. Class B share
performance will be greater or less than that shown based on differences in
inception date, fees and sales charges. The total return (since inception
3/16/94) for Class B shares reflects the 5% contingent deferred sales charge
(CDSC), which is applicable on all shares redeemed during the 1st year after
purchase and 4% for all shares redeemed during the 2nd year after purchase
(scaled down to 3%--3rd year; 2%--4th and 5th year and 0% thereafter).
Returns indicate past performance, which is not predictive of future
performance. Investment return and net asset value will fluctuate, so that
your shares, when redeemed, may be worth more or less than the original cost.
*The Lehman Brothers Municipal Bond Index is an unmanaged but commonly used
measure of long-term, investment-grade, tax-exempt municipal bond total
return performance. The Lehman Brothers Municipal Bond Index performance
does not reflect sales charges.
**Index information from 6/30/88 to 11/30/96.
***Index information from 2/28/94 to 11/30/96.
2
<PAGE>
Tax-Exempt Bond Portfolio
-----------------------------------------------------------------------------
INVESTMENTS AT NOVEMBER 30, 1996
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ---------------
<S> <C> <C> <C>
MUNICIPAL TAX-EXEMPT BONDS--96.8%
Alabama--0.7%
Alabama Housing Finance Authority
6.50%, '17 Aaa(b) $ 970 $ 999,866
---------
Alaska--0.9%
Valdez Marine Terminal Revenue 7%,
'25 AA 1,125 1,221,064
---------
Arizona--0.8%
Pima County 6.75%, '15 AAA 540 588,989
Pima County Prerefunded 6.75%, '15 AAA 460 511,129
---------
1,100,118
---------
Arkansas--1.4%
Drew County 7.90%, '11 Aaa(b) 406 438,666
Jacksonville Housing 7.90%, '11 Aaa(b) 604 658,137
Lonoke County Residential Housing
7.90%, '11 Aaa(b) 594 651,580
Stuttgart Revenue 7.90%, '11 Aaa(b) 283 300,719
---------
2,049,102
---------
California--8.1%
California HFA Mortgage 7.75%, '17 AA- 270 285,484
Pittsburg Redevelopment Series A
4.625%, '21 AAA 1,650 1,438,107
Riverside County 8.625%, '16 (d) AAA 4,300 5,667,830
University of California Series C
5.125%, '18 AAA 4,300 4,101,641
---------
11,493,062
---------
Colorado--2.0%
Arapahoe County Hwy Revenue 6.90%,
'15 Baa(b) 2,500 2,767,500
---------
Connecticut--2.0%
Mashantucket Pequot Tribe 144A
6.50%, '05 (e) BBB 1,700 1,788,162
Mashantucket Pequot Tribe 144A
6.50%, '06 (e) BBB 1,000 1,048,920
---------
2,837,082
---------
Florida--1.2%
Martin County Indl. Cogeneration
7.875%, '25 BBB- 1,500 1,722,150
---------
Georgia--2.2%
Fulton County Water and Sewer
6.375%, '14 AAA 1,000 1,123,320
Georgia Electric Authority Series Z
5.50%, '20 AAA 2,000 2,028,900
---------
3,152,220
---------
Illinois--6.0%
Chicago Board of Education 6%, '20 AAA 500 537,340
Chicago O'Hare International Airport
8.85%, '18 BB 890 1,009,687
Chicago PCR (Peoples Light & Gas)
7.50%, '15 AA- 1,000 1,090,260
Illinois Development Finance
Authority 7.60%, '13 (d) AA 2,000 2,202,880
Illinois Health Facilities Authority
7%, '08 AAA 1,100 1,265,352
Illinois Housing Development
Authority Residual Series A 7%, '17 A+ 780 803,135
Metro Pier & Exposition 0%,
'07 (c) Aaa(b) 1,470 1,589,599
Metro Pier & Exposition 0%,
'07 (c) Aaa(b) 30 31,889
---------
8,530,142
---------
Indiana--2.1%
Indianapolis Public Imp. 0%, '03 A(b) 2,500 1,863,200
Indianapolis Public Imp. 0%, '05 Aa(b) 1,765 1,159,781
---------
3,022,981
---------
Kentucky--2.6%
Greater Kentucky Housing Assistance
7.125%, '24 AA- 1,000 1,050,070
Kentucky Turnpike Authority 0%, '10 AAA 3,300 1,650,528
Perry County Solid Waste Disposal
Revenue 7%, '24 NR 1,000 1,041,120
---------
3,741,718
---------
Louisiana--1.9%
East Baton Rouge Parish Series ST-A
4.90%, '16 AAA 1,000 921,480
St. Charles Parish Revenue 7.50%,
'21 AAA 1,250 1,383,188
St. Mary Public Authority 7.625%,
'12 Aaa(b) 163 176,090
St. Tammany Public Authority 7%, '02 Aaa(b) 162 168,589
---------
2,649,347
---------
Maryland--0.4%
Baltimore G.O. 7%, '09 AAA 500 591,700
---------
See Notes to Financial Statements
3
<PAGE>
Tax-Exempt Bond Portfolio
-----------------------------------------------------------------------------
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ---------------
<S> <C> <C> <C>
Massachusetts--6.6%
Massachusetts Bay Transportation
Authority 5.80%, '11 A+ $2,000 $ 2,116,560
Massachusetts Bay Transportation
Authority Series B 6.20%, '16 A+ 1,000 1,101,300
Massachusetts Indl. Fin. Agency 0%,
'05 A 1,100 703,296
Massachusetts State Health
& Education Revenue
3.10%, '13 (c) AAA 6,000 4,799,820
Massachusetts State Series B 7%, '09 AAA 500 594,345
---------
9,315,321
---------
Michigan--2.1%
Western Townships Sewage Authority
8.20%, '18 BBB+ 1,500 1,631,355
Western Townships Sewage Authority
6.50%, '19 AAA 1,200 1,267,380
---------
2,898,735
---------
Mississippi--1.2%
Lowndes County Waste Disposal 6.80%,
'22 A 1,450 1,678,027
---------
Nebraska--1.1%
Nebraska Higher Education 6.70%, '02 A(b) 1,500 1,590,210
---------
Nevada--1.1%
Clark County School District Series
A 0%, '03 AAA 2,000 1,484,320
---------
New Jersey--1.7%
Atlantic City Improvement Authority
8.875%, '10 NR 1,000 1,096,490
Camden County Municipal Utility 0%,
'11 AAA 3,000 1,296,960
---------
2,393,450
---------
New York--11.8%
Erie County Water Authority 0%, '17 AAA 550 122,095
New York City University Dormitory
6.375%, '08 BBB 1,000 1,056,770
Niagara Falls 5.25%, '15 AAA 4,000 3,999,440
Port Authority Revenue 6.75%, '11 NR 3,000 3,125,070
Port Authority Revenue 6.125%, '94 AA- 5,000 5,374,500
Triborough Bridge & Tunnel 6.625%,
'12 A+ 750 866,595
Triborough Bridge & Tunnel 4.75%,
'14 A+ 2,250 2,128,545
---------
16,673,015
---------
North Carolina--1.1%
North Carolina Municipal Power 6%,
'09 AAA 1,385 1,503,681
---------
Pennsylvania--14.7%
Pennsylvania Economic Development
Series D 7.05%, '10 BBB- 2,000 2,098,900
Pennsylvania Economic Development
9.25%, '22 NR 6,000 5,677,980
Pennsylvania Finance Authority
6.60%, '09 A 4,000 4,235,600
Pennsylvania Financial Development
6.75%, '07 NR 3,000 3,096,390
Pennsylvania Financial Development
6.40%, '09 NR 5,000 4,993,950
Pittsburgh G.O. Series C 0%, '04 AAA 1,025 709,228
---------
20,812,048
---------
Tennessee--1.1%
Met. Gov't Tennessee Health &
Educational Facilities Board 6%,
'16 AAA 1,500 1,620,780
---------
Texas--8.8%
Alliance Airport Authority 7%, '11 BB+ 1,100 1,231,780
Austin Convention Center 8.25%, '14 AAA(b) 980 1,106,253
Brazos River Authority 7.75%, '15 A- 750 804,225
Brazos River Authority 7.625%, '19 A- 1,000 1,087,090
Colorado River Water District 8.25%,
'15 NR 540 616,756
Harris County Toll Road Multimode
8.125%, '17 AAA 700 754,684
La Vernia School District 5%, '22 AAA 1,125 1,048,118
San Antonio Texas Electric & Gas 5%,
'12 AA 2,000 1,947,560
Texas State Technical College 6.25%,
'09 AAA 1,250 1,386,125
Texas Turnpike Authority 5%, '25 AAA 1,500 1,401,570
Texas Water Resources Finance Agency
7.625%, '08 A 995 1,069,386
---------
12,453,547
---------
Utah--1.7%
Intermountain Power Agency Series B
7%, '21 A+ 1,250 1,331,338
Intermountain Power Agency Series B
7.50%, '21 A+ 1,000 1,061,980
---------
2,393,318
See Notes to Financial Statements
4
<PAGE>
Tax-Exempt Bond Portfolio
-----------------------------------------------------------------------------
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ---------------
<S> <C> <C> <C>
Virginia--4.4%
Pittsylvania County Revenue Series A
7.30%, '04 NR $1,000 $ 1,037,630
Pittsylvania County Revenue Series A
7.45%, '09 NR 3,000 3,159,690
Upper Occoquan Sewer Authority
5.15%, '20 AAA 2,000 1,965,220
---------
6,162,540
---------
Washington--1.3%
Walla Walla Waste Recycling Revenue
9.125%, '26 NR 2,000 1,865,480
---------
West Virginia--2.2%
Upshur Solid Waste Revenue 7%, '25 NR 2,000 2,089,360
West Virginia Housing Development
Fund 6.625%, '20 AA 1,000 1,001,770
---------
3,091,130
---------
Wisconsin--0.9%
Wisconsin Clean Water Revenue
6.875%, '11 AA 750 868,215
Wisconsin Housing & Development
Authority 7.375%, '17 A+ 335 345,164
---------
1,213,379
---------
Wyoming--0.5%
Wyoming Community Development
Authority 7.875%, '18 AA 625 651,356
---------
Other Territories--2.2%
Puerto Rico Commonwealth Aqueduct &
Sewer 7.875%, '17 AAA 500 541,070
Puerto Rico Commonwealth Highway
Revenue Series V 6.625%, '12 A 2,400 2,571,912
---------
3,112,982
---------
TOTAL MUNICIPAL TAX-EXEMPT BONDS
(Identified cost $130,596,377) 136,791,371
---------
SHORT-TERM OBLIGATIONS--1.5%
Commercial Paper--1.5%
CIESCO 5.40%, 12-2-96 2,160 2,159,676
---------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $2,159,676) 2,159,676
---------
TOTAL INVESTMENTS--98.3%
(Identified cost $132,756,053) 138,951,047(a)
Cash and receivables, less liabilities--1.7% 2,368,593
---------
NET ASSETS--100.0% $141,319,640
=========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $8,417,371 and gross
depreciation of $2,170,887 for income tax purposes. At November 30, 1996,
the aggregate cost of securities for federal income tax purposes was
$132,704,563.
(b) As rated by Moody's, Fitch, or Duff & Phelp's.
(c) Variable or step coupon bond; interest rate reflects the rate currently
in effect.
(d) Segregated as collateral for futures contracts.
(e) 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 November 30,
1996, these securities amount to a value of $2,837,082 or 2.0% of net
assets.
See Notes to Financial Statements
5
<PAGE>
Tax-Exempt Bond Portfolio
-----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1996
<TABLE>
<CAPTION>
<S> <C>
Assets
Investment securities at value
(Identified cost $132,756,053) $138,951,047
Cash 46,426
Receivables
Interest 2,668,556
Fund shares sold 11,862
-----------
Total assets 141,677,891
-----------
Liabilities
Payables
Dividend distributions 140,857
Fund shares repurchased 18,566
Variation margin for futures contracts 18,125
Investment advisory fee 52,086
Distribution fee 31,847
Transfer agent fee 24,049
Trustees' fee 11,197
Financial agent fee 3,472
Accrued expenses 58,052
-----------
Total liabilities 358,251
-----------
Net Assets $141,319,640
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $133,392,611
Distributions in excess of net investment income (117,605)
Accumulated net realized gain 1,867,140
Net unrealized appreciation 6,177,494
-----------
Net Assets $141,319,640
===========
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $136,558,079) 12,110,521
Net asset value per share $11.28
Offering price per share
$11.28/(1-4.75%) $11.84
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $4,761,561) 420,739
Net asset value and offering price per share $11.32
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1996
<TABLE>
<CAPTION>
<S> <C>
Investment Income
Interest $9,145,280
-----------
Total investment income 9,145,280
-----------
Expenses
Investment advisory fee 646,989
Distribution fee--Class A 349,074
Distribution fee--Class B 41,458
Financial agent fee 43,133
Transfer agent 159,941
Professional 43,923
Printing 33,814
Registration 32,713
Trustees 20,461
Custodian 15,963
Miscellaneous 1,515
-----------
Total expenses 1,388,984
-----------
Net investment income 7,756,296
-----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 981,871
Net realized gain on futures contracts 688,262
Net change in unrealized appreciation (depreciation) on
investments (3,275,493)
-----------
Net loss on investments (1,605,360)
-----------
Net increase in net assets resulting from operations $6,150,936
===========
</TABLE>
See Notes to Financial Statements
6
<PAGE>
Tax-Exempt Bond Portfolio
-----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Year
Ended Ended
November 30, 1996 November 30, 1995
------------------ ------------------
<S> <C> <C>
From Operations
Net investment income $7,756,296 $8,381,854
Net realized gain 1,670,133 457,881
Net change in unrealized appreciation
(depreciation) (3,275,493) 18,057,793
----------- -----------
Increase in net assets resulting from
operations 6,150,936 26,897,528
----------- -----------
From Distributions to Shareholders
Net investment income--Class A (7,504,351) (8,208,943)
Net investment income--Class B (191,960) (99,894)
Distributions in excess of net investment
income--Class A -- (45,855)
Distributions in excess of net investment
income--Class B -- (558)
Net realized gains--Class A -- (482,063)
Net realized gains--Class B -- (4,381)
----------- -----------
Decrease in net assets from distributions to
shareholders (7,696,311) (8,841,694)
----------- -----------
From Share Transactions
Class A
Proceeds from sales of shares (7,599,558 and
2,629,097 shares, respectively) 84,574,148 29,051,453
Net asset value of shares issued from
reinvestment of distributions (371,771 and
460,362 shares, respectively) 4,153,807 4,987,475
Cost of shares repurchased (8,830,124 and
4,162,067 shares, respectively) (98,463,997) (45,663,425)
----------- -----------
Total (9,736,042) (11,624,497)
----------- -----------
Class B
Proceeds from sales of shares (197,502 and
166,058 shares, respectively) 2,219,054 1,813,528
Net asset value of shares issued from
reinvestment of distributions (10,179 and
5,729, respectively) 113,899 62,670
Cost of shares repurchased (61,609 and 10,452
shares, respectively) (695,116) (114,346)
----------- -----------
Total 1,637,837 1,761,852
----------- -----------
Decrease in net assets from share
transactions (8,098,205) (9,862,645)
----------- -----------
Net increase (decrease) in net assets (9,643,580) 8,193,189
Net Assets
Beginning of period 150,963,220 142,770,031
----------- -----------
End of period (including distributions in
excess of net investment income of
($117,605) and ($130,874), respectively) $141,319,640 $150,963,220
=========== ===========
</TABLE>
See Notes to Financial Statements
7
<PAGE>
Tax-Exempt Bond Portfolio
-----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
---------------------------------------------------------
Year Ended November 30,
1996 1995 1994 1993 1992
----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.40 $10.09 $11.58 $11.10 $10.66
Income from investment operations
Net investment income 0.60 0.61 0.65 0.60(4) 0.66(4)
Net realized and unrealized gain (loss) (0.12) 1.34 (1.49) 0.76 0.57
-------- -------- -------- -------- --------
Total from investment operations 0.48 1.95 (0.84) 1.36 1.23
-------- -------- -------- -------- --------
Less distributions
Dividends from net investment income (0.60) (0.61) (0.65) (0.60) (0.66)
Dividends from net realized gains -- (0.03) -- (0.28) (0.13)
-------- -------- -------- -------- --------
Total distributions (0.60) (0.64) (0.65) (0.88) (0.79)
-------- -------- -------- -------- --------
Change in net asset value (0.12) 1.31 (1.49) 0.48 0.44
-------- -------- -------- -------- --------
Net asset value, end of period $11.28 $11.40 $10.09 $11.58 $11.10
======== ======== ======== ======== ========
Total return(1) 4.30% 19.87% -7.55% 12.79% 11.92%
Ratios/supplemental data:
Net assets, end of period (thousands) $136,558 $147,821 $141,623 $171,272 $35,625
Ratio to average net assets of:
Operating expenses 0.94% 0.97% 0.96% 0.75% 0.78%
Net investment income 5.42% 5.65% 5.65% 5.33% 5.92%
Portfolio turnover 27% 25% 54% 62% 145%
</TABLE>
<TABLE>
<CAPTION>
Class B
--------------------------------
From
Year Ended November 30, Inception
3/16/94 to
1996 1995 11/30/94
-------- -------- -------------
<S> <C> <C> <C>
Net asset value, beginning of period $11.44 $10.12 $11.21
Income from investment operations
Net investment income 0.52 0.53 0.39
Net realized and unrealized gain (loss) (0.12) 1.35 (1.09)
-------- -------- --------
Total from investment operations 0.40 1.88 (0.70)
-------- -------- --------
Less distributions
Dividends from net investment income (0.52) (0.53) (0.39)
Dividends from net realized gains -- (0.03) --
-------- -------- --------
Total distributions (0.52) (0.56) (0.39)
-------- -------- --------
Change in net asset value (0.12) 1.32 (1.09)
-------- -------- --------
Net asset value, end of period $11.32 $11.44 $10.12
======== ======== ========
Total return(1) 3.60% 19.07% -6.42%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $4,762 $3,142 $1,147
Ratio to average net assets of:
Operating expenses 1.69% 1.72% 1.54%(2)
Net investment income 4.68% 4.90% 5.07%(2)
Portfolio turnover 27% 25% 54%
</TABLE>
(1) Maximum sales charges are not reflected in the total return calculation.
(2) Annualized
(3) Not annualized
(4) Includes reimbursement of operating expenses by investment adviser of
$0.03 and $0.04, respectively.
See Notes to Financial Statements
8
<PAGE>
PHOENIX MID CAP PORTFOLIO
Fund Description
Phoenix Mid Cap Portfolio invests primarily in common stocks of medium-size
U.S. companies which have the potential to provide long-term capital
appreciation. More specifically, at least 65% of the Fund's total assets are
invested in stocks which range in market capitalization from $1 billion to
$10 billion.
Investment Environment
Despite increasing interest rates and waning corporate earnings momentum,
U.S. stock prices forged higher over this reporting period, fueled by
unprecedented cash inflows into equity mutual funds and continued corporate
share buybacks. Although this remarkable rally dates back to December 1994,
the past year has been one of tremendous rotation among various sectors of
the stock market -- a manifestation of increasing investor uncertainty over
the direction of interest rates and the economy. As measured by market
capitalization, large company stocks outperformed small- and mid-cap issues
by wide margins during the fiscal year ended November 30, 1996.
Portfolio Review
Aided by this long bull market, Phoenix Mid Cap Portfolio posted double
digit gains over this latest reporting cycle. For the twelve months ended
November 30, 1996, the Fund's class A shares provided a total return of
13.52% and class B shares returned 12.75%. Despite the solid results, the
Fund trailed the Standard & Poor's MidCap 400 Index, which returned 18.77%
over the same period. All of these figures assume reinvestment of any
distributions, but exclude the effect of sales charges.
Please note that this Fund has changed its market benchmark from the
Standard & Poor's 500, an Index consisting primarily of large capitalization
stocks, to that of the Standard & Poor's MidCap 400 Index. We believe that
the S&P MidCap 400 Index, which is composed of medium-size companies with
market capitalizations between $300 million and $5 billion, is more
indicative of the type of stocks that are typically held in this Fund.
During the fiscal year, Fund performance benefited from our strong stock
selection in the energy and capital goods sectors as well as the portfolio's
significant exposure to the solidly performing technology group. Individual
stocks which provided impressive gains for the Fund included ENSCO
International, Altera, Teleport Communications and OrNda Healthcorp. Negative
contributors to performance over this same period included some of our health
care and consumer cyclical holdings as well as the portfolio's underweighted
positions in the consumer staples and financial sectors.
Outlook
As we move closer to 1997, we continue to find investment opportunities in
this extended bull market. Given this current environment of moderate
economic growth and low inflation expectations, we are focusing on such
compelling investment themes as Next Generation Semiconductors (technology),
21st Century Medicine (health care) and Energy Technology (energy). With the
recent relative underperformance of smaller company stocks, we are also
scouring this segment of the market for high-growth companies selling at
attractive valuations. As of November 30, 1996, the Fund's asset allocation
mix was 86% equities and 14% cash equivalents.
*Standard & Poor's MidCap 400 Index consists of 400 domestic stocks chosen
for the market size (median market capitalization of about $610 million),
liquidity and industry group representation. It is a market-weighted index
with each stock affecting the index in proportion to its market value.
9
<PAGE>
Mid Cap Portfolio
[LINE CHART]
Phoenix
Mid Cap S&P
Portfolio Mid Cap
--Class A S&P 500** 400*
---------- --------- -------
11/1/89 9525 10000 10000
11/30/89 9800 10206 10221
11/30/90 11491 9841 9493
11/30/91 16177 11849 13482
11/30/92 18837 14035 16324
11/30/93 20521 15450 18373
11/30/94 20733 15617 18369
11/30/95 26511 21396 24335
11/30/96 30095 27390 28903
[/LINE CHART]
Average Annual Total Returns
for Periods Ending 11/30/96
<TABLE>
<CAPTION>
From Inception From Inception
11/1/89 to 7/18/94 to
1 Year 5 Years 11/30/96 11/30/96
--------------------------------- -------- --------- ---------------- ----------------
<S> <C> <C> <C> <C>
Class A with 4.75% sales charge 8.12% 12.12% 16.84% --
--------------------------------- ------- -------- -------------- ---------------
Class A at net asset value 13.52% 13.22% 17.65% --
--------------------------------- ------- -------- -------------- ---------------
Class B with CDSC 8.85% -- -- 16.10%
--------------------------------- ------- -------- -------------- ---------------
Class B at net asset value 12.75% -- -- 17.13%
--------------------------------- ------- -------- -------------- ---------------
S&P MidCap 400* 18.77% 16.48% 16.16% 19.61%
--------------------------------- ------- -------- -------------- ---------------
S&P 500 Stock Index** 28.02% 18.25% 15.28 % 21.24%
--------------------------------- ------- -------- -------------- ---------------
</TABLE>
This chart assumes an initial gross investment of $10,000 made on 11/1/89
(inception of the Fund) for Class A shares. The total return for Class A
shares reflects the maximum sales charge of 4.75% on the initial investment
and assumes reinvestment of dividends and capital gains. Class B share
performance will be greater or less than that shown based on differences in
inception date, fees and sales charges. The total return (since inception
7/18/94) for Class B shares reflects the 5% contingent deferred sales charge
(CDSC), which is applicable on all shares redeemed during the 1st year after
purchase and 4% for all shares redeemed during the 2nd year after purchase
(scaled down to 3%--3rd year; 2%--4th and 5th year and 0% thereafter).
Returns indicate past performance, which is not predictive of future
performance. Investment return and net asset value will fluctuate, so that
your shares, when redeemed, may be worth more or less than the original cost.
*The S&P MidCap 400 is an unmanaged index composed of companies with market
capitalizations between $300 million and $5 billion. Performance is
calculated on a total return basis, as reported by Frank Russell Co. The
S&P 400's performance does not reflect sales charges.
**The S&P 500 Stock Index is an unmanaged but commonly used measure of stock
return performance. The S&P 500's performance does not reflect sales charges.
10
<PAGE>
Mid Cap Portfolio
INVESTMENTS AT NOVEMBER 30, 1996
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON STOCKS--85.1% ----------- -------------
Airlines--0.5%
Southwest Airlines Co. 100,000 $ 2,475,000
-----------
Banks--4.1%
Fleet Financial Group, Inc. 190,000 10,521,250
Republic New York Corp. 100,000 8,825,000
-----------
19,346,250
-----------
Computer Software & Services--9.2%
Netscape Communications Corp. (b) 150,000 8,381,250
Network General Corp. (b) 300,000 7,256,250
Parametric Technology Corp. (b) 150,000 8,156,250
Peoplesoft, Inc. (b) 90,000 8,235,000
Rogue Wave Software, Inc. (b) 20,000 257,500
Security Dynamics Technologies, Inc. (b) 160,000 6,580,000
Shiva Corp. (b) 100,000 4,125,000
-----------
42,991,250
-----------
Diversified Financial Services--3.0%
Associates First Capital Corp. Class A 110,000 5,321,250
First USA, Inc. 260,000 8,547,500
-----------
13,868,750
-----------
Diversified Miscellaneous--0.9%
Central Garden & Pet Company (b) 185,000 4,000,625
-----------
Electrical Equipment--1.8%
General Signal Corp. 150,000 6,468,750
Grainger (W.W.), Inc. 25,000 1,987,500
-----------
8,456,250
-----------
Electronics--7.9%
Altera Corp. (b) 49,000 3,699,500
Analog Devices, Inc. (b) 112,000 3,598,000
C-Cube Microsystems, Inc. (b) 125,000 5,453,125
Linear Technology Corp. 86,000 4,052,750
LSI Logic Corp. (b) 240,000 7,230,000
Maxim Integrated Products, Inc. (b) 82,000 3,802,750
Microchip Technology, Inc. (b) 70,000 3,342,500
S3, Inc. (b) 150,000 2,550,000
Xilinx, Inc. (b) 80,000 3,510,000
-----------
37,238,625
-----------
Food--1.4%
Interstate Bakeries Corp. 150,000 6,768,750
-----------
Healthcare--Diversified--1.5%
Warner-Lambert Co. 100,000 7,150,000
-----------
Healthcare--Drugs--1.7%
Genetics Institute, Inc. (b) 50,000 3,400,000
Genzyme Corp. (b) 200,000 4,550,000
-----------
7,950,000
-----------
Hospital Management Services--4.9%
Health Management Association, Inc. Class A (b) 221,000 4,889,625
HEALTHSOUTH Corp. (b) 155,000 5,831,875
PhyCor, Inc. (b) 240,000 7,755,000
Tenet Healthcare Corp. (b) 200,000 4,475,000
-----------
22,951,500
-----------
Insurance--3.3%
Ace Ltd. 165,000 9,549,375
Travelers/Aetna Property Casualty Corp. 165,000 5,692,500
-----------
15,241,875
-----------
Lodging & Restaurants--2.9%
Boston Chicken (b) 250,000 9,687,500
Lone Star Steakhouse & Saloon (b) 140,000 4,007,500
-----------
13,695,000
-----------
Medical Products & Supplies--2.5%
Boston Scientific Corp. (b) 100,000 5,837,500
OrNda HealthCorp (b) 200,000 5,825,000
-----------
11,662,500
-----------
Metals & Mining--1.6%
Phelps Dodge Corp. 100,000 7,262,500
-----------
Natural Gas--2.6%
Columbia Gas System, Inc. 75,000 4,846,875
Consolidated Natural Gas Co. 80,000 4,570,000
UtiliCorp United, Inc. 100,000 2,687,500
-----------
12,104,375
-----------
Oil Service & Equipment--11.5%
BJ Services Co. (b) 165,000 7,878,750
Diamond Offshore Drilling (b) 10,000 637,500
ENSCO International, Inc. (b) 180,000 7,897,500
Global Marine, Inc. (b) 375,000 7,312,500
Halliburton Co. 10,000 602,500
Reading & Bates Corp. (b) 220,000 6,380,000
Rowan Companies, Inc. (b) 300,000 7,087,500
Smith International, Inc. (b) 100,000 4,087,500
Tidewater, Inc. 140,000 6,125,000
Transocean Offshore, Inc. 100,000 6,025,000
-----------
54,033,750
-----------
Retail--3.4%
Office Depot, Inc. (b) 225,000 4,387,500
Staples, Inc. (b) 300,000 5,925,000
Toys "R" Us, Inc. (b) 170,000 5,865,000
-----------
16,177,500
-----------
Retail--Food--4.2%
Albertson's, Inc. 200,000 6,975,000
American Stores Co. 130,000 5,183,750
Safeway, Inc. (b) 185,000 7,515,625
-----------
19,674,375
-----------
Telecommunications Equipment--7.6%
Ascend Communications, Inc. (b) 120,000 8,535,000
LCI International, Inc. (b) 215,000 7,014,375
Panamsat Corp. (b) 245,000 7,043,750
Premisys Communications, Inc. (b) 135,000 6,969,375
Teleport Communications Group, Inc. Class A (b) 180,000 5,962,500
-----------
35,525,000
-----------
</TABLE>
See Notes to Financial Statements
11
<PAGE>
Mid Cap Portfolio
<TABLE>
<CAPTION>
SHARES VALUE
--------- --------------
<S> <C> <C>
Textile & Apparel--6.5%
Jones Apparel Group, Inc. (b) 280,000 $ 8,610,000
Liz Claiborne, Inc. 250,000 10,593,750
Nautica Enterprises, Inc. (b) 180,000 5,760,000
Tommy Hilfiger Corp. (b) 100,000 5,400,000
------------
30,363,750
------------
Utility--Electric--2.1%
FPL Group, Inc. 70,000 3,228,750
Public Service Co. of Colorado 100,000 3,900,000
Sierra Pacific Resources 100,000 2,862,500
------------
9,991,250
------------
TOTAL COMMON STOCKS
(Identified cost $338,271,185) 398,928,875
------------
WARRANTS--1.3%
Electronics--1.3%
Intel Corp. Warrants (b) 70,000 6,142,500
------------
TOTAL WARRANTS
(Identified cost $3,145,660) 6,142,500
------------
TOTAL LONG-TERM INVESTMENTS--86.4%
(Identified cost $341,416,845) 405,071,375
------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------- ---------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--16.5%
Commercial Paper--10.7%
Receivables Capital Corp.
5.29%, 12-2-96 A-1 $5,000 4,999,265
Abbott Laboratories 5.25%,
12-4-96 A-1+ 3,000 2,998,688
Pfizer, Inc. 5.24%, 12-9-96 A-1+ 5,000 4,994,178
Exxon Imperial U.S., Inc.
5.23%, 12-11-96 A-1+ 2,500 2,496,368
</TABLE>
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ---------------
<S> <C> <C> <C>
Commercial Paper--continued
AlliedSignal, Inc. 5.25%, 12-13-96 A-1 $5,000 $ 4,991,250
General Electric Capital Corp. 5.25%,
12-18-96 A-1+ 7,292 7,292,000
Schering Corp. 5.25%, 12-18-96 A-1+ 4,120 4,109,786
Ameritech Capital Funding Corp.
5.25%, 12-23-96 A-1+ 4,960 4,944,087
Kellogg Co. 5.26%, 12-23-96 A-1+ 4,625 4,610,133
General Re Corp. 5.27%, 12-24-96 A-1+ 5,500 5,481,481
Receivables Capital Corp. 5.37%,
1-16-97 A-1 3,580 3,555,435
-----------
50,472,671
-----------
Federal Agency Securities--4.7%
Federal Home Loan Mortgage 5.70%, 12-2-96 2,670 2,669,577
Federal National Mortgage Assoc.
5.22%, 12-6-96 1,625 1,623,822
Federal Home Loan Mortgage
5.215%, 12-11-96 3,295 3,290,227
Federal Home Loan Banks 5.22%, 12-19-96 9,965 9,939,091
Federal Home Loan Mortgage 5.21%,
12-23-96 4,460 4,445,800
-----------
21,968,517
-----------
U.S. Treasury Bills--1.1%
U.S. Treasury Bills 5.115%, 12-19-96 5,000 4,987,213
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $77,428,401) 77,428,401
-----------
TOTAL INVESTMENTS--102.9%
(Identified cost $418,845,246) 482,499,776(a)
Cash and receivables, less liabilities--(2.9%) (13,427,473)
-----------
NET ASSETS--100.0% $469,072,303
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $67,142,817 and gross
depreciation of $3,935,372 for federal income tax purposes. At November
30, 1996, the aggregate cost of securities for federal income tax
purposes was $419,292,331.
(b) Non-income producing.
See Notes to Financial Statements
12
<PAGE>
Mid Cap Portfolio
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1996
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $418,845,246) $482,499,776
Short-term investments held as collateral for loaned
securities 29,424,800
Cash 1,792
Receivables
Investment securities sold 5,333,732
Fund shares sold 110,887
Dividends and interest 280,820
-----------
Total assets 517,651,807
-----------
Liabilities
Payables
Investment securities purchased 17,778,496
Collateral on securities loaned 29,424,800
Fund shares repurchased 635,345
Investment advisory fee 288,085
Transfer agent fee 168,879
Distribution fee 106,623
Financial agent fee 11,523
Trustees' fee 11,179
Accrued expenses 154,574
-----------
Total liabilities 48,579,504
-----------
Net Assets $469,072,303
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $352,535,244
Accumulated net realized gain 52,882,529
Net unrealized appreciation 63,654,530
-----------
Net Assets $469,072,303
===========
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $451,473,543) 20,849,016
Net asset value per share $21.65
Offering price per share
$21.65/(1-4.75%) $22.73
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $17,598,760) 826,400
Net asset value and offering price per share $21.30
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1996
<TABLE>
<CAPTION>
<S> <C>
Investment Income
Interest $3,366,781
Dividends 2,146,098
Security lending 142,965
-----------
Total investment income 5,655,844
-----------
Expenses
Investment advisory fee 3,579,657
Distribution fee--Class A 1,157,450
Distribution fee--Class B 143,076
Financial agent fee 143,186
Transfer agent 1,116,125
Printing 226,813
Custodian 55,355
Registration 51,707
Professional 49,266
Trustees 20,444
Miscellaneous 27,584
-----------
Total expenses 6,570,663
-----------
Net investment loss (914,819)
-----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 53,981,348
Net realized loss on foreign currency transactions (5,591)
Net change in unrealized appreciation (depreciation) on
investments 7,327,088
-----------
Net gain on investments 61,302,845
-----------
Net increase in net assets resulting from operations $60,388,026
===========
</TABLE>
See Notes to Financial Statements
13
<PAGE>
Mid Cap Portfolio
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Year
Ended Ended
November 30, 1996 November 30, 1995
------------------ ------------------
<S> <C> <C>
From Operations
Net investment income (loss) $(914,819) $1,216,555
Net realized gain 53,975,757 66,738,232
Net change in unrealized appreciation
(depreciation) 7,327,088 43,684,291
----------- -----------
Increase in net assets resulting from operations 60,388,026 111,639,078
----------- -----------
From Distributions to Shareholders
Net investment income--Class A -- (1,350,030)
Net investment income--Class B -- (5,608)
Net realized gains--Class A (63,370,772) (17,010,194)
Net realized gains--Class B (1,485,800) (73,125)
----------- -----------
Decrease in net assets from distributions to
shareholders (64,856,572) (18,438,957)
----------- -----------
From Share Transactions
Class A
Proceeds from sales of shares (4,975,113 and
5,517,176 shares, respectively) 98,337,401 105,808,213
Net asset value of shares issued from
reinvestment of distributions (3,203,933 and
999,234 shares, respectively) 59,432,948 17,312,320
Cost of shares repurchased (9,465,735 and
7,668,150 shares, respectively) (189,179,115) (146,988,778)
----------- -----------
Total (31,408,766) (23,868,245)
----------- -----------
Class B
Proceeds from sales of shares (391,167 and
452,091 shares, respectively) 7,718,870 8,748,909
Net asset value of shares issued from
reinvestment of distributions (74,668 and 4,305,
respectively) 1,371,654 74,521
Cost of shares repurchased (138,583 and 41,778
shares, respectively) (2,722,739) (853,309)
----------- -----------
Total 6,367,785 7,970,121
----------- -----------
Decrease in net assets from share transactions (25,040,981) (15,898,124)
----------- -----------
Net increase (decrease) in net assets (29,509,527) 77,301,997
Net Assets
Beginning of period 498,581,830 421,279,833
----------- -----------
End of period (including undistributed net
investment income of $0 and $0, respectively) $469,072,303 $498,581,830
=========== ===========
</TABLE>
See Notes to Financial Statements
14
<PAGE>
Mid Cap Portfolio
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
--------------------------------------------------------------
Year Ended November 30,
1996 1995 1994 1993 1992
----------- ------------ ------------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $22.03 $18.03 $18.70 $17.95 $16.61
Income from investment operations(5)
Net investment income (loss) (0.03)(1) 0.05(1) 0.11 0.11 0.15
Net realized and unrealized gain 2.53 4.74 0.10 1.44 2.41
-------- -------- -------- -------- --------
Total from investment operations 2.50 4.79 0.21 1.55 2.56
-------- -------- -------- -------- --------
Less distributions
Dividends from net investment income -- (0.06) (0.10) (0.13) (0.21)
Dividends from net realized gains (2.88) (0.73) (0.78) (0.67) (1.01)
-------- -------- -------- -------- --------
Total distributions (2.88) (0.79) (0.88) (0.80) (1.22)
-------- -------- -------- -------- --------
Change in net asset value (0.38) 4.00 (0.67) 0.75 1.34
-------- -------- -------- -------- --------
Net asset value, end of period $21.65 $22.03 $18.03 $18.70 $17.95
======== ======== ======== ======== ========
Total return(2) 13.52% 27.87% 1.03% 8.94% 16.44%
Ratios/supplemental data:
Net assets, end of period (thousands) $451,474 $487,674 $419,760 $426,027 $234,472
Ratio to average net assets of:
Operating expenses 1.35% 1.42% 1.36% 1.34% 1.40%
Net investment income (loss) (0.17)% 0.28% 0.59% 0.64% 0.93%
Portfolio turnover 242% 218% 227% 174% 287%
Average commission rate paid(6) $0.0504 N/A N/A N/A N/A
Class B
-------------------------------------
From
Inception
7/18/94
Year Ended November 30, to
1996 1995 11/30/94
-------- -------- --------
Net asset value, beginning of period $21.85 $17.97 $17.68
Income from investment operations(5)
Net investment income (loss) (0.18)(1) (0.12)(1) (0.01)
Net realized and unrealized gain 2.51 4.75 0.30
-------- -------- --------
Total from investment operations 2.33 4.63 0.29
-------- -------- --------
Less distributions
Dividends from net investment income -- (0.02) --
Dividends from net realized gains (2.88) (0.73) --
-------- -------- --------
Total distributions (2.88) (0.75) --
-------- -------- --------
Change in net asset value (0.55) 3.88 0.29
-------- -------- --------
Net asset value, end of period $21.30 $21.85 $17.97
======== ======== ========
Total return(2) 12.75% 26.92% 1.64%(4)
Ratios/supplemental data:
Net assets, end of period (thousands) $17,599 $10,908 $1,519
Ratio to average net assets of:
Operating expenses 2.11% 2.18 % 2.05%(3)
Net investment income (loss) (0.92)% (0.58)% (0.23)%(3)
Portfolio turnover 242% 218 % 227 %
Average commission rate paid(6) $0.0504 N/A N/A
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charges are not reflected in the total return calculation.
(3) Annualized
(4) Not annualized
(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 time of share purchases and
redemptions.
(6) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for securities
trades on which commissions are charged. This rate generally does not
reflect mark-ups, mark-downs, or spreads on shares traded on a principal
basis.
See Notes to Financial Statements
15
<PAGE>
PHOENIX INTERNATIONAL PORTFOLIO
Fund Description
The Fund generally invests in quality stocks with strong managements, solid
growth prospects and attractive relative valuations. We believe that earnings
growth is the primary factor which drives stock prices and will place emphasis
on markets and stocks where relative earnings growth is strongest. We will sell
a stock that no longer looks attractive relative to the growth and valuation of
its market or peer group, that has surpassed the top of its valuation range, or
that sees a fundamental deterioration in its business prospects. This
disciplined approach allows the Fund to continually emphasize securities that
will provide stronger growth potential over the long-term.
World Markets
Most foreign equity markets have produced excellent returns over the last
twelve months, despite a rising U.S. dollar. In addition to the continued strong
performance in the U.S., Europe also stood out. Almost all European markets
benefited from corporate restructuring, falling interest rates, and the
likelihood of more shareholder-friendly policies. Additionally, countries such
as Germany, Sweden, Finland and the United Kingdom have been further bolstered
by share buybacks and M&A activity.
Despite a strong start, Japan's performance over this reporting period has
been a major disappointment. Poor corporate earnings growth and a weak domestic
economy led to a serious deterioration in investor sentiment. In contrast to
Japan, other Far East countries such as Taiwan, Malaysia, Indonesia and Hong
Kong posted stellar gains during this twelve-month period.
Lastly, most Latin American markets moved higher over this reporting period,
earning double digit returns. An improved economic outlook, lower interest rates
and strong capital inflows served as catalysts for this solid performance. As
measured in U.S. dollars, Venezuela, Brazil and Argentina were among the best
performing countries in this region, while Chile and Peru were among the
laggards.
Portfolio Review
The Phoenix International Portfolio posted strong results over this reporting
cycle. For twelve months ended November 30, 1996, class A shares returned 19.03%
and class B shares returned 18.16%. These results compared very favorably to the
Morgan Stanley International EAFE Index, which gained 12.09% over the same
period. All of these figures assume reinvestment of any distributions, but
exclude the effect of sales charges.
During the fiscal year, Fund performance benefited from the portfolio's
modest overweighting in Europe and its underweighted position in Japan. Strong
stock selection in Europe and our continued focus on such themes as Corporate
Restructuring and Growth in Services also boosted results. Other positive
contributors included our recent overweighting of certain Asian countries,
particularly Hong Kong and Taiwan, as well as the Fund's use of currency hedges.
Outlook
After a dismal first half in 1996, European economic growth is beginning to
improve. We expect 1997 GDP to grow at about 2.5%, but it is unlikely that
demand will be strong enough to exert much upward pressure on interest rates
until late in the year. Except for the United Kingdom and a few smaller European
countries, unemployment is showing no signs of declining. Moreover, the pressure
on governments to cut spending will continue to be a drag on growth going
forward. This, coupled with both public and private sector restructuring, means
it will be even more important to focus on those companies that are making the
difficult choices that will deliver value to their shareholders.
In Japan, the outlook for 1997 is also modest. It appears that most globally
active companies in this country have already done as much restructuring as
possible without a radical philosophical change towards "U.S. style
restructuring." This would entail layoffs and unfriendly takeovers, supported by
government deregulation and tax-reform, and it is doubtful that this type of
change will occur in the near term. On the positive side, the potential for
improved economic growth in the rest of the world could tighten overall capacity
and allow even the weakest Japanese companies to improve their profit margins.
We will continue to monitor Japan's economy for signs of improvement, but
currently see better prospects elsewhere.
In Asia, we remain very positive on Hong Kong's near-term outlook. As a
country, we believe that Hong Kong will remain self-confident immediately prior
to and after the
16
<PAGE>
International Portoflio
handover to China on June 30, 1997. We also expect Taiwan and Malaysia to
continue to do well. However, our outlook for Singapore is rather negative
due to slowing economic growth and a lack of choice in this market. We are
also concerned about the prospects for India and Thailand, given their weak
governments and the severe structural changes needed to turn around both
economies.
In Latin America, Mexico and Argentina are seeing economic re-acceleration
after the severe recession of 1995 and early 1996. While this is clearly good
news, flawed economic reform processes still remain and are now causing problems
in Brazil. The Fund intends to have exposure to this region, but potential
currency depreciation may limit prospective gains. Since other emerging
countries may provide better opportunities, we will look for new markets which
can provide above-average economic and earnings growth.
Overall, we expect foreign markets to continue to perform well in 1997 due to
low interest rates, improved economic growth, and corporate restructuring
efforts. If world economic growth begins to accelerate dramatically, we will
increase the Fund's exposure to economically sensitive stocks. At present,
however, we continue to focus on themes that should provide secular growth and
hence, strong performance. Moving forward, we believe the Fund is well
positioned for the coming new year.
17
<PAGE>
International Portfolio
[LINE CHART]
MSCI EAFE Phoenix
EAFE Excluding International
Index* Japan Portfolio-
Class A
------ --------- -------------
11/1/89 10000 10000 9525
11/30/89 10505 10493 9943
11/30/90 8230 11221 9868
11/30/91 8946 11982 10684
11/30/92 8251 12209 9625
11/30/93 10284 15583 11989
11/30/94 11841 16977 13568
11/30/95 12776 19853 14127
11/30/96 14321** 24498 16816
[/LINE CHART]
Average Annual Total Returns
for Periods Ending 11/30/96
<TABLE>
<CAPTION>
From Inception From Inception
11/1/89 to 7/15/94 to
1 Year 5 Years 11/30/96 11/30/96
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A with 4.75% sales charge 13.38% 8.44% 7.62% --
---------------------------------------------------------------------------------------
Class A at net asset value 19.03% 9.49% 8.36% --
---------------------------------------------------------------------------------------
Class B with CDSC 14.16% -- -- 6.87%
---------------------------------------------------------------------------------------
Class B at net asset value 18.16% -- -- 8.01%
---------------------------------------------------------------------------------------
The Morgan Stanley Capital
International EAFE Index* 12.09% 9.87% 5.20 %** 7.52%***
---------------------------------------------------------------------------------------
</TABLE>
This chart assumes an initial gross investment of $10,000 made on 11/1/89
(inception of the Fund) for Class A shares. The total return for Class A
shares reflects the maximum sales charge of 4.75% on the initial investment
and assumes reinvestment of dividends and capital gains. Class B share
performance will be greater or less than that shown based on differences in
inception date, fees and sales charges. The total return (since inception
7/15/94) for Class B shares reflects the 5% contingent deferred sales charge
(CDSC), which is applicable on all shares redeemed during the 1st year after
'purchase and 4% for all shares redeemed during the 2nd year after purchase
(scaled down to 3%--3rd year; 2%--4th and 5th year and 0% thereafter).
Returns indicate past performance, which is not predictive of future
performance. Investment return and net asset value will fluctuate, so that
your shares, when redeemed, may be worth more or less than the original cost.
*The Morgan Stanley Capital International EAFE Index is an unmanaged but
commonly used measure of foreign stock fund performance which includes net
dividends reinvested. The EAFE index is an aggregate of 19 individual
country indexes in Europe, Australia, New Zealand and the Far East. The
index's performance does not reflect sales charges.
**Index information from 10/31/89 to 11/30/96.
***Index information from 6/30/94 to 11/30/96.
18
<PAGE>
International Portfolio
INVESTMENTS AT NOVEMBER 30, 1996
<TABLE>
<CAPTION>
SHARES VALUE
----------- --------------
<S> <C> <C>
COMMON STOCKS--89.1%
Belgium--2.1%
Barco Industries NV (Electronics) 6,450 $ 1,113,684
Credit Communal Holding/Dexia (Banks) (b) 20,000 1,818,182
-----------
2,931,866
-----------
Brazil--1.5%
Telebras Sponsored ADR (Utility-Telephone) 29,000 2,196,750
-----------
France--8.9%
AXA SA (Insurance) 24,931 1,498,457
BIC SA (Miscellaneous) 9,850 1,474,878
Cardif SA (Insurance) 11,500 1,772,585
Carrefour Supermarche (Retail-Food) 2,510 1,550,427
Louis Dreyfus Citrus (Food) (b) 33,000 1,117,145
Pathe SA (Publishing, Broadcasting, Printing
& Cable) (b) 4,174 975,047
Rexel SA (Wholesale & Distribution) 3,354 1,000,561
Salomon SA (Entertainment, Leisure & Gaming) 15,000 1,321,181
Sommer-Allibert (Auto & Truck Parts) 24,000 666,335
Thomson CSF (Aerospace & Defense) 42,101 1,361,555
-----------
12,738,171
-----------
Germany--4.5%
Adidas AG (Textile & Apparel) 22,850 1,984,565
BASF AG (Chemical) 50,000 1,850,563
SGL Carbon AG (Chemical) 20,400 2,508,360
-----------
6,343,488
-----------
Hong Kong--13.8%
Cheung Kong Holdings Ltd. (Real Estate) 448,000 3,939,990
Dao Heng Bank Group Ltd. (Banks) 208,000 987,274
Great Eagle Holdings Ltd. (Real Estate) 182,000 755,587
Guoco Group Ltd. (Diversified Financial
Services) 266,000 1,448,344
Henderson China Holding Ltd. (Real Estate) 780 1,957
Henderson Land Development Co. Ltd. (Real
Estate) 468,000 4,706,027
Hutchison Whampoa Ltd. (Conglomerates) 469,000 3,624,256
Hysan Development Co. Ltd. (Real Estate) 364,000 1,391,128
New World Development Co. Ltd. (Real Estate) 192,000 1,297,465
Sun Hung Kai Properties Ltd. (Real Estate) 125,000 1,551,992
-----------
19,704,020
-----------
Indonesia--1.5%
PT Semen Gresik (Building & Materials) 500,000 1,524,520
Wicaksana Overseas International (Wholesale
& Distribution) 520,000 587,633
-----------
2,112,153
-----------
Italy--6.5%
Fila Holding SPA ADR (Textile & Apparel) 44,800 3,315,200
Gucci Group NV (Textile & Apparel) 19,600 1,428,658
Gucci Group NV-NY (Textile & Apparel) 24,800 1,819,700
Parmalat Finanziaria SPA (Food) 343,000 537,735
Saipem SPA (Engineering & Construction) 165,200 764,431
Stet-Societa Finanziaria Telefonica SPA
(Utility-Telephone) 327,000 1,390,093
-----------
9,255,817
-----------
Japan--9.8%
Canon, Inc. (Office & Business Equipment) 71,000 1,497,364
Circle K Japan Co. Ltd. (Retail-Food) 32,000 1,434,095
Hitachi Maxell (Electronics) 36,000 743,409
Honda Motor Co. Ltd. (Autos & Trucks) 63,000 1,860,105
Keyence Corp. Ltd. (Electronics) 8,800 1,067,135
Nintendo Corp. Ltd. (Entertainment, Leisure
& Gaming) 21,500 1,520,870
Nippon Television Network (Publishing,
Broadcasting, Printing & Cable) 2,500 751,318
Takeda Chemical Industries (Health
Care-Drugs) 85,000 1,665,641
TDK Corp. (Electronics) 24,000 1,547,979
Toyota Motor Corp. (Autos & Trucks) 47,000 1,284,446
Xebio Co. Ltd. (Retail) 19,000 659,490
-----------
14,031,852
-----------
Malaysia--3.1%
Commerce Asset Holding Berhad (Banks) 192,000 1,466,113
Renong Berhad (Engineering & Construction) 800,000 1,474,975
United Engineers Ltd. (Building & Materials) 161,000 1,458,714
-----------
4,399,802
-----------
Mexico--2.6%
Apasco SA de CV (Building & Materials) 188,000 1,247,856
Grupo Carso (Conglomerates) 286,000 1,452,733
Grupo Industrial Maseca SA de CV (Food) 779,800 968,021
-----------
3,668,610
-----------
Netherlands--4.8%
Ahrend Groep NV (Office & Business
Equipment) 23,079 1,191,088
IHC Caland (Oil Service & Equipment) 29,400 1,646,877
Oce-Van Der Grinten NV-Venlo (Office &
Business Equipment) 10,000 1,090,171
Samas Groep-CVA (Office & Business
Equipment) 16,668 665,947
See Notes to Financial Statements
19
<PAGE>
International Portfolio
SHARES VALUE
------- ------------
Netherlands--continued
VNU-Verenigd Bezit (Publishing,
Broadcasting, Printing & Cable) 106,700 $ 2,177,930
-----------
6,772,013
-----------
Norway--1.0%
Storebrand ASA (Insurance) (b) 245,000 1,462,698
-----------
Peru--1.0%
Telefonica Del Peru SA (Utility-Telephone) 693,541 1,360,568
-----------
Portugal--1.8%
Cimpor-Cimentos de Portugal SA (Building &
Materials) 64,000 1,338,231
Portugal Telecom SA (Utility-Telephone) 47,300 1,255,725
-----------
2,593,956
South Korea--1.0%
Daegu Bank (Banks) 75,060 909,331
Hana Bank (Banks) 19,240 253,408
Hana Bank New Common (Banks) (b) 9,007 110,908
Shinhan Bank (Banks) 8,460 150,636
-----------
1,424,283
-----------
Spain--1.7%
Empresa Nacional de Electricidad SA
(Utility-Electric) 16,700 1,128,378
Telefonica de Espana (Utility-Telephone) 59,700 1,309,251
-----------
2,437,629
-----------
Sweden--2.1%
Frontec AB (Computer Software & Services) (b) 90,400 1,643,024
Nordbanken AB (Banks) 47,000 1,330,354
-----------
2,973,378
------------
Switzerland--5.6%
Ares-Serono Group B (Health Care-Drugs) 1,370 1,281,318
CS Holding AG Registered Shares (Banks) 14,000 1,491,592
Sandoz AG (Health Care-Diversified) 1,910 2,223,420
Stratec Holding AB Reg. B (Medical Products
& Supplies) (b) 1,230 1,539,507
Swiss Reinsurance-Reg. (Insurance) 1,300 1,420,487
------------
7,956,324
------------
Taiwan--0.0%
China Bills Finance Corp. (Commercial
Finance) (b) 70,345 64,233
------------
United Kingdom--15.1%
Astec (BSR) PLC (Electronics) 437,000 1,167,585
Barclays PLC (Diversified Financial
Services) 88,000 1,513,494
British Aerospace PLC (Aerospace & Defense) 140,500 2,731,617
Carlton Communications PLC (Publishing,
Broadcasting, Printing & Cable) 196,000 1,653,369
Compass Group PLC (Lodging & Restaurants) 237,300 2,418,458
Granada Group PLC (Entertainment, Leisure &
Gaming) 132,000 1,917,560
Lloyds TSB Group PLC (Diversified Financial
Services) 220,000 1,524,954
Next PLC (Retail) 140,000 1,385,649
Shell Transport & Trading Co. PLC (Oil) 126,000 2,094,001
Siebe PLC (Electrical Equipment) 136,000 2,169,921
WPP Group PLC (Advertising) 788,000 2,919,745
------------
21,496,353
------------
United States--0.7%
Latin American Discovery Fund, Inc.
(Multi-Industry) (b) 82,000 1,066,000
------------
TOTAL COMMON STOCKS
(Identified cost $107,997,123) 126,989,964
------------
PREFERRED STOCKS--1.2%
Germany--0.6%
Porsche AG (Autos & Trucks) 1,100 862,338
------------
United Kingdom--0.6%
Egypt Investment Co. (Multi-Industry) (b) 73,000 839,500
------------
TOTAL PREFERRED STOCKS
(Identified cost $1,510,729) 1,701,838
------------
TOTAL LONG-TERM INVESTMENTS--90.3%
(Identified cost $109,507,852) 128,691,802
------------
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
SHORT-TERM OBLIGATIONS--6.5% ----------- -------- ------------
Commercial Paper--6.4%
AlliedSignal, Inc. 5.28%,
12-2-96 A-1 $1,985 1,984,709
Receivables Capital Corp.
5.30%, 12-2-96 A-1 3,500 3,499,485
Du Pont (E.I.) de Nemours &
Co. 5.27%, 12-9-96 A-1+ 185 184,784
Corporate Receivables Corp.
5.27%, 12-10-96 A-1 420 419,447
Du Pont (E.I.) de Nemours &
Co. 5.30%, 12-10-96 A-1+ 355 354,530
McKenna Triangle National
Corp. 5.26%, 12-18-96 A-1+ 1,020 1,017,466
Heinz (H.J.) Co. 5.24%,
12-30-96 (c) A-1 1,690 1,682,866
--------------
9,143,287
Federal Agency Securities--0.1% --------------
Federal National Mortgage Assoc. 5.23%,
12-19-96 175 174,543
TOTAL SHORT-TERM OBLIGATIONS --------------
(Identified cost $9,317,830) 9,317,830
TOTAL INVESTMENTS--96.8% --------------
(Identified cost $118,825,682) 138,009,632(a)
Cash and receivables, less liabilities--3.2% 4,469,080
--------------
NET ASSETS--100.0% $142,478,712
==============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $20,497,344 and gross
depreciation of $1,396,144 for federal income tax purposes. At November
30, 1996, the aggregate cost of securities for federal income tax
purposes was $118,908,432.
(b) Non-income producing.
(c) Segregated as collateral for foreign currency contracts.
See Notes to Financial Statements
20
<PAGE>
International Portfolio
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of Long-Term
Investments
(Unaudited)
Advertising 2.3%
Aerospace & Defense 3.2
Auto & Truck Parts 0.5
Autos & Trucks 3.1
Banks 6.6
Building & Materials 4.3
Chemical 3.4
Commercial Finance 0.1
Computer Software & Services 1.3
Conglomerates 4.0
Diversified Financial Services 3.5
Electrical Equipment 1.7
Electronics 4.4
Engineering & Construction 1.7
Entertainment, Leisure & Gaming 3.7
Food 2.0
Health Care-Diversified 1.7
Health Care-Drugs 2.3
Insurance 4.8
Lodging & Restaurants 1.9
Medical Products & Supplies 1.2
Miscellaneous 1.1
Multi-Industry 1.5
Office & Business Equipment 3.5
Oil 1.6
Oil Service & Equipment 1.3
Publishing, Broadcasting, Printing & Cable 4.3
Real Estate 10.6
Retail 1.6
Retail-Food 2.3
Textile & Apparel 6.6
Utility-Electric 0.9
Utility-Telephone 5.8
Wholesale & Distribution 1.2
------
100.0%
======
See Notes to Financial Statements
21
<PAGE>
International Portfolio
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1996
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $118,825,682) $138,009,632
Foreign currency at value
(Identified cost $106,834) 103,121
Cash 3,320
Receivables
Investment securities sold 6,270,237
Dividends and interest 133,754
Fund shares sold 150,190
Tax reclaim 65,534
Net unrealized appreciation on forward currency contracts 451,182
-----------
Total assets 145,186,970
-----------
Liabilities
Payables
Investment securities purchased 2,282,763
Fund shares repurchased 100,997
Closed foreign currency contracts 1,206
Investment advisory fee 86,384
Transfer agent fee 77,000
Distribution fee 32,886
Trustees' fee 11,179
Financial agent fee 3,455
Accrued expenses 112,388
-----------
Total liabilities 2,708,258
-----------
Net Assets $142,478,712
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $108,023,599
Undistributed net investment income 2,213,316
Accumulated net realized gain 12,613,904
Net unrealized appreciation 19,627,893
-----------
Net Assets $142,478,712
===========
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $135,524,109) 9,362,310
Net asset value per share $14.48
Offering price per share
$14.48/(1-4.75%) $15.20
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $6,954,603) 489,172
Net asset value and offering price per share $14.22
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1996
<TABLE>
<S> <C>
Investment income
Dividends $2,235,516
Interest 665,080
Foreign taxes withheld (191,453)
-----------
Total investment income 2,709,143
-----------
Expenses
Investment advisory fee 1,071,572
Distribution fee--Class A 344,573
Distribution fee--Class B 50,471
Financial agent fee 42,863
Transfer agent 388,848
Custodian 194,890
Printing 74,431
Professional 45,311
Registration 30,931
Trustees 20,443
Miscellaneous 14,490
-----------
Total expenses 2,278,823
-----------
Net investment income 430,320
-----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 12,620,342
Net realized gain on foreign currency transactions 2,078,957
Net change in unrealized appreciation (depreciation)
on investments 9,051,592
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions 672,084
-----------
Net gain on investments 24,422,975
-----------
Net increase in net assets resulting from operations $24,853,295
===========
</TABLE>
See Notes to Financial Statements
22
<PAGE>
International Portfolio
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Year
Ended Ended
November 30, 1996 November 30, 1995
----------------- ------------------
<S> <C> <C>
From Operations
Net investment income $430,320 $313,901
Net realized gain 14,699,299 202,864
Net change in unrealized appreciation
(depreciation) 9,723,676 4,460,307
----------- -----------
Increase in net assets resulting from operations 24,853,295 4,977,072
----------- -----------
From Distributions to Shareholders
Net realized gains--Class A (365,795) (11,650,763)
Net realized gains--Class B (9,318) (157,020)
----------- -----------
Decrease in net assets from distributions to
shareholders (375,113) (11,807,783)
----------- -----------
From Share Transactions
Class A
Proceeds from sales of shares (11,106,013 and
3,960,774 shares, respectively) 151,805,606 46,334,510
Net asset value of shares issued from
reinvestment of distributions (27,365 and
967,317 shares, respectively) 332,491 10,969,371
Cost of shares repurchased (12,375,802 and
7,623,764 shares, respectively) (169,679,302) (89,077,200)
----------- -----------
Total (17,541,205) (31,773,319)
----------- -----------
Class B
Proceeds from sales of shares (357,180 and
171,608 shares, respectively) 4,778,686 2,007,010
Net asset value of shares issued from
reinvestment of distributions (673 and 10,925
shares, respectively) 8,087 123,448
Cost of shares repurchased (138,908 and 70,364
shares, respectively) (1,858,546) (821,816)
----------- -----------
Total 2,928,227 1,308,642
----------- -----------
Decrease in net assets from share transactions (14,612,978) (30,464,677)
----------- -----------
Net increase (decrease) in net assets 9,865,204 (37,295,388)
Net Assets
Beginning of period 132,613,508 169,908,896
----------- -----------
End of period (including undistributed net
investment income and distributions in excess of
net investment income of $2,213,316 and
($295,961), respectively) $142,478,712 $132,613,508
=========== ===========
</TABLE>
See Notes to Financial Statements
23
<PAGE>
International Portfolio
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
----------------------------------------------------------
Year Ended November 30,
1996 1995 1994 1993 1992
----------------------- ------------ --------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.20 $12.63 $11.16 $ 8.96 $10.90
Income from investment operations(5)
Net investment income (loss) 0.04(1) 0.03(1) (0.01) -- 0.11
Net realized and unrealized gain (loss) 2.28 0.42 1.48 2.20 (1.10)
-------- -------- -------- -------- --------
Total from investment operations 2.32 0.45 1.47 2.20 (0.99)
-------- -------- -------- -------- --------
Less distributions
Dividends from net investment income -- -- -- -- (0.12)
Dividends from net realized gains (0.04) (0.88) -- -- (0.64)
Distribution in excess of accumulated net
investment income -- -- -- -- (0.19)
-------- -------- -------- -------- --------
Total distributions (0.04) (0.88) -- -- (0.95)
-------- -------- -------- -------- --------
Change in net asset value 2.28 (0.43) 1.47 2.20 (1.94)
-------- -------- -------- -------- --------
Net asset value, end of period $14.48 $12.20 $12.63 $11.16 $ 8.96
======== ======== ======== ======== ========
Total return(2) 19.03% 4.12% 13.17% 24.55% -9.91%
Ratios/supplemental data:
Net assets, end of period (thousands) $135,524 $129,352 $167,918 $91,196 $26,188
Ratio to average net assets of:
Operating expenses 1.57% 1.70% 1.47% 1.78% 1.97%
Net investment income (loss) 0.33% 0.23% 0.20% (0.04)% 0.85%
Portfolio turnover 151% 236% 186% 191% 82%
Average commission rate paid(6) $0.0205 N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
Class B
------------------------------------------
Year Ended November 30, From Inception
7/15/94 to
1996 1995 11/30/94
------------------------ ----------------
<S> <C> <C> <C>
Net asset value, beginning of period $12.07 $12.60 $12.80
Income from investment operations(5)
Net investment income (loss) (0.05)(1) (0.07)(1) (0.01)
Net realized and unrealized gain (loss) 2.24 0.42 (0.19)
-------- -------- --------
Total from investment operations 2.19 0.35 (0.20)
-------- -------- --------
Less distributions
Dividends from net investment income -- -- --
Dividends from net realized gains (0.04) (0.88) --
Distribution in excess of accumulated net
investment income -- -- --
-------- -------- --------
Total distributions (0.04) (0.88) --
-------- -------- --------
Change in net asset value 2.15 (0.53) (0.20)
-------- -------- --------
Net asset value, end of period $14.22 $12.07 $12.60
======== ======== ========
Total return(2) 18.16% 3.28% -1.56%(4)
Ratios/supplemental data:
Net assets, end of period (thousands) $6,955 $3,261 $1,991
Ratio to average net assets of:
Operating expenses 2.31% 2.50% 1.93%(3)
Net investment income (loss) (0.39%) (0.61%) 0.36%(3)
Portfolio turnover 151% 236% 186%
Average commission rate paid(6) $0.0205 N/A N/A
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charges are not reflected in the total return calculation.
(3) Annualized
(4) Not annualized
(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 time of share purchases and
redemptions.
(6) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for securities
trades on which commissions are charged. This rate generally does not
reflect mark-ups, mark-downs, or spreads on shares traded on a principal
basis.
See Notes to Financial Statements
24
<PAGE>
PHOENIX REAL ESTATE SECURITIES PORTFOLIO
Fund Description
Phoenix Real Estate Securities Portfolio invests in marketable securities of
publicly-traded real estate investment trusts (REITs) and companies that
develop, acquire, operate, and/or manage real estate located primarily in the
United States.
Investment Environment
Since our last shareholders report some six months ago, the real estate
markets have continued to stabilize. Leasing activity, rents, and market
values all moved ahead as the economy continued to improve and overall
construction activity supplied less space than required by increased demand.
Transaction prices in the private real estate markets shot up, with
capitalization rates falling by at least one-half of a percentage point. In
some regions, market prices on existing properties are beginning to approach
replacement cost, leading to investor concerns of overbuilding in some
sectors.
Performance by property type sector has varied considerably over this
reporting period. The apartment sector, which enjoyed the recovery in advance
of most other property types, has experienced more modest rental rate growth
as market vacancy rates have reached equilibrium. In the office sector, we
continue to see declines in vacancy rates -- at least a 2% drop in 1996 --
and strong gains in rental rates. Concerns about oversupply in the retail
sector have reduced investor demand. However, construction in this sector has
finally slowed and there has been increased interest in certain categories,
including regional malls and anchored community centers. Full-service hotels
have seen limited new construction, continued strong demand and very high
occupancy levels. By comparison, economy hotels are experiencing significant
overbuilding and accompanying deterioration in occupancy levels and room
rates.
As measured by the NAREIT Equity Index, real estate securities posted a
strong 29.21% return over the past twelve months. The best performing
property sectors during this period were office and hotel REITs. However, all
sectors other than outlet center REITs generated very attractive returns.
Stock prices were propelled upward by strong growth in funds from operations
resulting from positive trends in occupancy levels and rental rates, and by
expanding market capitalizations generated from both significant capital
inflows and aggressive acquisition programs.
The real estate securities market has continued to expand at a dramatic
pace, notwithstanding the modest volume of IPOs over the past twelve months.
Growth has been driven by strong performance of the held assets and by an
active secondary market. Year-to-date, there have been 87 equity offerings
raising a total of $8.9 billion. In addition, unsecured debt offerings have
raised another $3.3 billion.
Portfolio Review
Phoenix Real Estate Securities Portfolio posted strong returns over this
fiscal reporting period. For twelve months ended November 30, 1996, the
Fund's class A shares returned 29.20% and class B earned 28.25%. During the
same period, the NAREIT Equity Index recorded a total return of 29.21%. All
of these figures assume reinvestment of any distributions, but exclude the
effect of sales charges.
The Fund's investment strategy is to focus on market sectors which have
strong underlying fundamentals and prospects for growth in excess of market
averages over the intermediate- and long-term. We also look for sectors that
are significantly undervalued on a risk-adjusted basis. Three of the targeted
sectors are apartment, hotel, and office/industrial REITs.
The Fund has been consistently overweighted in the apartment sector, which
we believe will offer stable earnings growth and reduced risk. Apartment
REITs, as a group, have had strong earnings growth over the last two years,
yet their stock prices have failed to keep pace with the broader REIT
averages due to investor fears of overbuilding.
We have also been significantly overweighted in the hotel sector, which has
posted very strong returns over this reporting period. Our outlook for hotels
remains positive, given the limited amount of new construction in the full
service sector which comprises the bulk of the product held by REITs
represented in the Fund.
Finally, the Fund has had an increasing allocation to the office/industrial
sector, which participated in the overall real estate recovery later than
other property types and
25
<PAGE>
Real Estate Securities Portfolio
currently has strong upside potential. Office/industrial REITs were among the
top performers in 1996.
The Fund has maintained a neutral posture with respect to regional mall REITs
which significantly outperformed this year. At the same time, we remained
underweighted in strip retail REITs because of concerns of underlying market
fundamentals. Strip retail REITs have generated market-based returns
year-to-date.
Outlook
Looking ahead, we anticipate continued strong performance in the REIT market
for a number of reasons. First, the underlying markets are continuing to
strengthen and, with construction levels lower than projected demand in nearly
all property types, the outlook remains very positive. Second, there is
increasing interest by both individual and institutional investors in REIT
stocks. We attribute this to increased liquidity, attractive current yields, and
a view held by some that REITs could provide a 'safe haven' for equity investors
in 1997. Lastly, the increases in REIT prices experienced during 1996 have been
more or less in line with the increases in funds from operation, and
accordingly, multiples have not been driven up in line with the broader markets.
Over the long-term, we expect to see continued growth in total market
capitalization, although limited if any growth in the numbers of companies as
focus on efficiencies of scale leads to more mergers and larger companies.
Nineteen companies today have market capitalizations in excess of $1 billion. We
expect that number will grow to as many at 40 companies by the year 2000. The
Fund will attempt to take advantage of this trend by focusing on market dominant
companies that have the potential to significantly increase in size because they
are positioned to acquire smaller private and public companies. We will also
continue to look for smaller undervalued companies that are attractive takeover
candidates for some of the larger REITs.
26
<PAGE>
Real Estate Securities Portfolio
[LINE CHART]
Phoenix Phoenix
Real Estate Real Estate
Securities Securities
Portfolio Portfolio
NAREIT* -- Class A -- Class B
------- ---------- ----------
3/1/95 10000 9525 10000
11/30/95 10903 10463 10921
11/30/96 14087 13519 13606
[/LINE CHART]
Average Annual Total Returns
for Periods Ending 11/30/96 From Inception
3/1/95 to
1 Year 11/30/96
- -------------------------------------------------------------------------
Class A with 4.75% sales charge 23.11% 18.80%
- -------------------------------------------------------------------------
Class A at net asset value 29.20% 22.16%
- -------------------------------------------------------------------------
Class B with CDSC 24.25% 19.24%
- -------------------------------------------------------------------------
Class B at net asset value 28.25% 21.23%
- -------------------------------------------------------------------------
NAREIT Index* 29.21% 21.59%
- -------------------------------------------------------------------------
The total return for Class A shares reflects the maximum sales charge of
4.75% on the initial investment and assumes reinvestment of dividends and
capital gains. This chart assumes an initial gross investment of $10,000 made
on 3/1/95 (inception of the Fund) for Class A and B shares.
The total return for Class B shares reflects the 5% contingent deferred sales
charge (CDSC), which is applicable on all shares redeemed during the 1st year
after purchase and 4% for all shares redeemed during the 2nd year after
purchase (scaled down to 3%--3rd year; 2%--4th and 5th year and 0%
thereafter). Returns indicate past performance, which is not predictive of
future performance. Investment return and net asset value will fluctuate, so
that your shares, when redeemed, may be worth more or less than the original
cost.
*The National Association of Real Estate Investment Trusts (NAREIT) Equity
Index is a commonly used, unmanaged indicator of REIT performance. The index
does not reflect sales charges.
27
<PAGE>
Real Estate Securities Portfolio
INVESTMENTS AT NOVEMBER 30, 1996
<TABLE>
<CAPTION>
SHARES VALUE
-------- ----------------
<S> <C> <C>
COMMON STOCKS--100.7%
REAL ESTATE INVESTMENT TRUSTS--97.2%
COMMERCIAL--24.0%
Office/Industrial--17.8%
Arden Realty Group, Inc. (b) 6,300 $ 151,987
Beacon Properties Corp. 15,400 487,025
Cali Realty Corp. 4,500 127,125
CarrAmerica Realty Corp. 11,800 306,800
Duke Realty Investments, Inc. 28,800 1,033,200
Highwoods Properties, Inc. 46,300 1,423,725
Spieker Properties, Inc. 38,700 1,185,188
Weeks Corp. 28,600 811,525
-----------
5,526,575
-----------
Storage--6.2%
Public Storage, Inc. 29,000 735,875
Shurgard Storage Centers, Inc. Class A 14,500 398,750
Storage USA, Inc. 21,300 804,075
-----------
1,938,700
-----------
TOTAL COMMERCIAL 7,465,275
-----------
HEALTH CARE--6.1%
Health Care Properties Inv., Inc. 23,300 795,112
Nationwide Health Properties, Inc. 49,000 1,090,250
-----------
1,885,362
-----------
RESIDENTIAL--31.2%
Apartments--27.5%
Avalon Properties, Inc. 24,900 638,063
Bay Apartments Community, Inc. 29,600 962,000
Camden Property Trust 17,900 494,487
Columbus Realty Trust 7,300 155,125
Equity Residential Properties Trust 23,600 946,950
Evans Withycombe Residential, Inc. 44,200 900,575
Irvine Apartment Communities, Inc. 33,000 804,375
Merry Land & Investment Co. 53,200 1,064,000
Oasis Residential, Inc. 29,900 627,900
Post Properties, Inc. 26,800 1,035,150
United Dominion Realty Trust 63,500 936,625
-----------
8,565,250
-----------
Manufactured Homes--3.7%
Manufactured Home Communities 23,700 474,000
Sun Communities, Inc. 21,600 688,500
-----------
1,162,500
-----------
TOTAL RESIDENTIAL 9,727,750
-----------
RETAIL--35.9%
Community/Neighborhood--9.9%
Developers Diversified Realty Corp. 23,800 800,275
Federal Realty Investment Trust 21,100 548,600
Kimco Realty Corp. 21,850 636,381
Regency Realty Corp. 12,000 288,000
Vornado Realty Trust 17,900 807,738
-----------
3,080,994
-----------
Factory Outlet--2.6%
Chelsea G.C.A. Realty, Inc. 26,100 822,150
-----------
Hotels--14.4%
Capstar Hotel Company (b) 38,900 714,787
FelCor Suite Hotels, Inc. 34,100 1,214,813
Patriot American Hospitality 37,400 1,416,525
Starwood Lodging Trust 23,700 1,131,675
-----------
4,477,800
-----------
Regional Malls--9.0%
Rouse Co. 11,400 302,100
Simon DeBartolo Group, Inc. 52,808 1,445,619
Taubman Centers, Inc. 77,800 904,425
The Macerich Company 6,300 146,475
-----------
2,798,619
-----------
TOTAL RETAIL 11,179,563
-----------
TOTAL REAL ESTATE INVESTMENT TRUSTS
(Identified cost $25,830,868) 30,257,950
-----------
REAL ESTATE OPERATING COMPANIES--3.5%
Hotels--3.5%
Host Marriott Corp. (b) 63,900 974,475
Red Roof Inns, Inc. (b) 7,400 116,550
-----------
1,091,025
-----------
TOTAL REAL ESTATE OPERATING COMPANIES
(Identified cost $989,401) 1,091,025
-----------
TOTAL COMMON STOCKS
(Identified cost $26,820,269) 31,348,975
-----------
TOTAL INVESTMENTS--100.7%
(Identified cost $26,820,269) 31,348,975(a)
Cash and receivables, less liabilities--(0.7%) (218,726)
-----------
NET ASSETS--100.0% $31,130,249
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $4,645,702 and gross
depreciation of $118,955 for federal income tax purposes. At November 30,
1996 the aggregate cost of securities for federal income tax purposes was
$26,822,228.
(b) Non-income producing.
See Notes to Financial Statements
28
<PAGE>
Real Estate Securities Portfolio
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1996
<TABLE>
<CAPTION>
<S> <C>
Assets
Investment securities at value
(Identified cost $26,820,269) $31,348,975
Receivables
Investment securities sold 342,456
Fund shares sold 127,088
Dividends and interest 19,274
-----------
Total assets 31,837,793
-----------
Liabilities
Payables
Custodian 550,421
Fund shares repurchased 50,153
Investment advisory fee 21,046
Trustees' fee 11,179
Distribution fee 11,054
Transfer agent fee 5,541
Financial agent fee 758
Accrued expenses 57,392
-----------
Total liabilities 707,544
-----------
Net Assets $31,130,249
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $25,810,385
Undistributed net investment income 192,599
Accumulated net realized gain 598,559
Net unrealized appreciation 4,528,706
-----------
Net Assets $31,130,249
===========
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $22,871,669) 1,741,170
Net asset value per share $13.14
Offering price per share
$13.14/(1-4.75%) $13.80
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $8,258,580) 630,374
Net asset value and offering price per share $13.10
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1996
<TABLE>
<CAPTION>
<S> <C>
Investment Income
Dividends $1,304,929
Interest 13,332
-----------
Total investment income 1,318,261
-----------
Expenses
Investment advisory fee 168,177
Distribution fee--Class A 45,025
Distribution fee--Class B 44,137
Financial agent fee 6,727
Registration 47,775
Transfer agent 47,638
Professional 40,536
Printing 24,285
Trustees 20,443
Custodian 9,734
Miscellaneous 1,076
-----------
Total expenses 455,553
Less expenses borne by investment adviser (130,944)
-----------
Net expenses 324,609
-----------
Net investment income 993,652
-----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 605,112
Net change in unrealized appreciation (depreciation) on
investments 4,233,859
-----------
Net gain on investments 4,838,971
-----------
Net increase in net assets resulting from operations $5,832,623
===========
</TABLE>
See Notes to Financial Statements
29
<PAGE>
Real Estate Securities Portfolio
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year From Inception
Ended 3/1/95 to
November 30, 1996 11/30/95
------------------ ----------------
<S> <C> <C>
From Operations
Net investment income $993,652 $391,699
Net realized gain 605,112 19,820
Net change in unrealized appreciation
(depreciation) 4,233,859 294,847
----------- -----------
Increase in net assets resulting from operations 5,832,623 706,366
----------- -----------
From Distributions to Shareholders
Net investment income--Class A (861,331) (192,639)
Net investment income--Class B (163,427) (26,085)
Net realized gains--Class A (22,396) --
Net realized gains--Class B (3,977) --
----------- -----------
Decrease in net assets from distributions to
shareholders (1,051,131) (218,724)
----------- -----------
From Share Transactions
Class A
Proceeds from sales of shares (603,974 and
1,293,809 shares, respectively) 7,207,751 13,414,115
Net asset value of shares issued from
reinvestment of distributions (73,246 and 17,043
shares, respectively) 838,272 180,926
Cost of shares repurchased (227,727 and 19,175
shares, respectively) (2,803,944) (210,731)
----------- -----------
Total 5,242,079 13,384,310
----------- -----------
Class B
Proceeds from sales of shares (436,484 and
208,805 shares, respectively) 5,218,052 2,200,102
Net asset value of shares issued from
reinvestment of distributions (12,304 and 1,955
shares, respectively) 141,327 20,860
Cost of shares repurchased (28,003 and 1,171
shares, respectively) (333,067) (12,548)
----------- -----------
Total 5,026,312 2,208,414
----------- -----------
Increase in net assets from share transactions 10,268,391 15,592,724
----------- -----------
Net increase in net assets 15,049,883 16,080,366
Net Assets
Beginning of period 16,080,366 0
----------- -----------
End of period (including undistributed net
investment income of $192,599 and $211,093,
respectively) $31,130,249 $16,080,366
=========== ===========
</TABLE>
See Notes to Financial Statements
30
<PAGE>
Real Estate Securities Portfolio
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A Class B
----------------------------- -----------------------------
From From
Year Ended Inception Year Ended Inception
November 30, 3/1/95 November 30, 3/1/95
1996 to 11/30/95 1996 to 11/30/95
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.72 $10.00 $10.68 $10.00
Income from investment operations
Net investment income 0.53(5) 0.43(4)(5) 0.46(5) 0.36(4)(5)
Net realized and unrealized gain 2.50 0.55 2.47 0.56
-------- -------- -------- --------
Total from investment operations 3.03 0.98 2.93 0.92
-------- -------- -------- --------
Less distributions
Dividends from net investment income (0.59) (0.26) (0.49) (0.24)
Dividends from net realized gains (0.02) -- (0.02) --
-------- -------- -------- --------
Total distributions (0.61) (0.26) (0.51) (0.24)
-------- -------- -------- --------
Change in net asset value 2.42 0.72 2.42 0.68
-------- -------- -------- --------
Net asset value, end of period $13.14 $10.72 $13.10 $10.68
======== ======== ======== ========
Total return(1) 29.20% 9.87%(3) 28.25% 9.21%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $22,872 $13,842 $8,259 $2,239
Ratio to average net assets of:
Operating expenses 1.30% 1.30%(2) 2.05% 2.05%(2)
Net investment income 4.55% 5.79%(2) 3.95% 5.03%(2)
Portfolio turnover 24% 9%(3) 24% 9%(3)
Average commission rate paid(6) $0.0478 N/A $0.0478 N/A
</TABLE>
(1) Maximum sales charges are not reflected in the total return calculation.
(2) Annualized
(3) Not annualized
(4) Computed using average shares outstanding.
(5) Includes reimbursement of operating expenses by investment adviser of $0.07
and $0.12, respectively.
(6) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for securities
trades on which commissions are charged. This rate generally does not
reflect mark-ups, mark-downs, or spreads on shares traded on a principal
basis.
See Notes to Financial Statements
31
<PAGE>
PHOENIX EMERGING MARKETS BOND PORTFOLIO
Fund Description
Phoenix Emerging Markets Bond Portfolio seeks high current income and
long-term capital appreciation by investing in emerging markets debt. The
Fund currently concentrates its investments in three main geographic areas:
Latin America, Central and Eastern Europe, and developing Asian Countries.
Investors should note that foreign investments pose added risks, such as
currency fluctuation, less public information and political and economic
uncertainty.
Investment Environment
It has been another stellar year for emerging market bond investors. Over
the last twelve months, this fixed- income sector has significantly
outperformed all other bond categories as well as most of the world's equity
markets. For the year ended November 30, 1996, this market as measured by the
J.P. Morgan Emerging Markets Bond Index Plus returned 47.26%. While virtually
every country represented within this Index earned double-digit returns,
Russia, Ecuador and Venezuela posted the biggest gains over this period.
Overall, improving fundamentals and strong investor demand served as the
catalysts for this sector's impressive results.
Portfolio Review
Phoenix Emerging Markets Bond Portfolio made a strong showing over the
latest fiscal reporting period. For the twelve-month period ended November
30, 1996, the Fund's class A shares returned 60.18% and class B shares earned
58.94%. These results compare very favorably with the J.P. Morgan Emerging
Markets Bond Index Plus, which earned 47.26% for the same period. All of
these figures assume reinvestment of any distributions, but exclude the
effect of sales charges. The outstanding performance over this reporting
period can be attributed to a number of factors, but most notably the Fund's
relative overweighting in Russia, combined with its underweighting in both
the Philippines and Poland. The portfolio's exposure to Panama, Peru, Ecuador
and Venezuela also significantly boosted results.
Outlook
Despite its extended rally, we remain bullish on emerging markets debt.
While last year's gains were exceptionally high relative to other
fixed-income groups, returns of this nature are not unprecedented for this
sector. Overall, we believe valuations are still attractive by historical
standards and demand for these types of fixed-income securities continues to
rise. With more long-term institutional investors entering this maturing
market, we also expect volatility to continue to decline. In terms of country
selection, we see tremendous potential in such areas as Russia, Argentina,
Mexico and Brazil. As of November 30, 1996, the Fund had an average duration
of 3.4 years.
32
<PAGE>
Emerging Markets Bond Portfolio
[LINE CHART]
J.P. Morgan Phoenix Phoenix
Emerging Emerging Emerging
Markets Markets Markets
Bond Index Bond Portfolio Bond Portfolio
Plus* -- Class A -- Class B
----- ---------- ----------
9/5/95 10000 9525 10000
11/30/95 10537 9942 10422
11/30/96 15517 15926 16165
[/LINE CHART]
Average Annual Total Returns
for Periods Ending 11/30/96 From Inception
9/5/95 to
1 Year 11/30/96
- ------------------------------------------------------------------
Class A with 4.75% sales charge 52.53% 45.54%
- ------------------------------------------------------------------
Class A at net asset value 60.18% 51.38%
- ------------------------------------------------------------------
Class B with CDSC 54.94% 47.49%
- ------------------------------------------------------------------
Class B at net asset value 58.94% 50.23%
- ------------------------------------------------------------------
JP Morgan Emerging Markets
Bond Index Plus* 47.26 % 42.59%
- ------------------------------------------------------------------
The total return for Class A shares reflects the maximum sales charge of
4.75% on the initial investment and assumes reinvestment of dividends and
capital gains. This chart assumes an initial gross investment of $10,000 made
on 9/5/95 (inception of the Fund) for Class A and B shares.
The total return for Class B shares reflects the 5% contingent deferred sales
charge (CDSC), which is applicable on all shares redeemed during the 1st year
after purchase and 4% for all shares redeemed during the 2nd year after
purchase (scaled down to 3%--3rd year; 2%--4th and 5th year and 0%
thereafter). Returns indicate past performance, which is not predictive of
future performance. Investment return and net asset value will fluctuate, so
that your shares, when redeemed, may be worth more or less than the original
cost.
*The JP Morgan Emerging Markets Bond Index Plus tracks total returns for
traded external debt instruments in the emerging markets. Included in the
index are U.S. dollar- and other external-denominated Brady bonds, loans,
Eurobonds, and local markets instruments. The index does not reflect sales
charges.
33
<PAGE>
Emerging Markets Bond Portfolio
INVESTMENTS AT NOVEMBER 30, 1996
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------------ -------------
<S> <C> <C> <C>
FOREIGN NON-CONVERTIBLE BONDS--3.0%
Mexico--3.0%
Aerovias De Mexico S.A. 9.75%, '00
(Aerospace & Airline) NR $ 700 $ 668,500
Grupo Televisa S.A. 0%, '08 (Media) (c) Ba 750 493,125
--------
1,161,625
--------
TOTAL FOREIGN NON-CONVERTIBLE BONDS
(Identified cost $1,110,833) 1,161,625
--------
FOREIGN GOVERNMENT SECURITIES--104.0%
Algeria--2.8%
Algeria Tranch A Loans 6.625%-7.3125%,
'06 (c) NR 1,500 1,087,500
--------
Argentina--17.1%
Republic of Argentina Bearer FRB 6.625%,
'05 (c) B 1,666 1,440,049
Republic of Argentina Bocon Pre1 Euro,
PIK interest capitalization, 3.515%,
'01 (c) NR 300 347,812
Republic of Argentina Bocon Pre3 Euro,
PIK interest capitalization, 3.515%,
'02 (c) NR 826 733,488
Republic of Argentina Bocon Pro2, PIK
interest capitalization, 5.375%, '07
(c) NR 1,000 1,077,000
Republic of Argentina Bocon Pro1 M1, PIK
interest capitalization, 3.515%, '07
(c) NR 3,350 3,138,113
--------
6,736,462
--------
Brazil--24.1%
Republic of Brazil C Bond, PIK interest
capitalization, 8%, '14 (c) (e) B 5,623 4,150,613
Republic of Brazil DCB-L Euro 6.563%,
'12 (c) (e) B 5,525 4,098,859
Republic of Brazil FLIRB L-BR 4.50%, '09
(c) (e) B 1,750 1,231,562
--------
9,481,034
--------
Bulgaria--3.2%
Republic of Bulgaria Euro Reg'd IAB, PDI
6.688%, '11 (c) NR 250 122,344
Republic of Bulgaria FLIRB-A Bearer Euro
2.25%, '12 (c) B 3,000 1,104,375
Republic of Bulgaria IAB, PDI Euro
6.688%, '11 (c) B 100 48,937
--------
1,275,656
--------
Ecuador--2.6%
Ecuador Bearer PDI Euro, PIK interest
capitalization, 6.50%, '15 (c) NR 1,385 843,865
Ecuador Reg'd PDI, PIK interest
capitalization, 6.50%, '15 (c) NR 317 193,251
--------
1,037,116
--------
Ivory Coast--1.5%
Ivory Coast Non-Performing
Loans (b) NR 2,000 607,500
--------
Mexico--13.7%
Mexican Cetes 0%, '97 NR 6,697(g) 763,051
Mexican Cetes 0%, '97 NR 8,597(g) 1,026,133
Mexican Cetes 0%, '97 NR 21,134(g) 2,509,942
United Mexican States Global Bond
11.50%, '26 (e) Ba 1,050 1,100,662
--------
5,399,788
--------
Nigeria--2.2%
Nigeria Promissory Notes 5.092%, '10 NR 1,228 872,425
--------
Panama--1.6%
Panama PDI 144A, PIK interest
capitalization, 6.75%, '16 (c) (d) NR 825 629,298
--------
Peru--5.3%
Peru Citibank Non-performing Loans (b) NR 175 210,875
Peru Non-Citibank
Non-performing Loans (b) NR 880 1,060,400
Peru PDI WI, 144A 4%, (c) (d) (f) NR 1,300 801,125
--------
2,072,400
--------
Philippines--1.8%
Central Bank of Philippines FLIRB-B Euro
5%, '08 (c) Ba 750 708,750
--------
Russia--15.5%
Russia Principal Loans WI, 6.36% (c) (f) NR 5,000 2,910,938
Vnescheconombank Loans Yankee (b) NR 4,050 3,184,313
--------
6,095,251
--------
See Notes to Financial Statements
34
<PAGE>
Emerging Markets Bond Portfolio
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------------ -------------
<S> <C> <C> <C>
Ukraine--2.7%
CS Boston Ukraine 144A 0%,
'97 (d) NR $1,150 $1,063,520
--------
Venezuela--9.9%
Banco Central Venezuela NMB B-P 6.625%,
'05 (c) (e) Ba 500 430,625
Republic of Venezuela DCB Euro 6.625%,
'07 (c) (e) Ba 2,000 1,727,500
Republic of Venezuela-FLIRB A Euro
6.625%, '07 (c) (e) Ba 750 654,844
Republic of Venezuela Series A NMB
6.75%, '05 (c) (e) Ba 1,250 1,076,563
--------
3,889,532
--------
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified cost $38,488,704) $ 40,956,232
-----------
TOTAL LONG-TERM INVESTMENTS--107.0%
(Identified cost $39,599,537) 42,117,857
-----------
TOTAL INVESTMENTS--107.0%
(Identified cost $39,599,537) 42,117,857(a)
Cash and receivables, less liabilities--(7.0%) (2,743,851)
-----------
NET ASSETS--100.0% $ 39,374,006
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $2,442,963 and gross
depreciation of $126,036 for income tax purposes. At November 30, 1996,
the aggregate cost of securities for federal income tax purposes was
$39,800,930.
(b) Non-income producing.
(c) Variable or step coupon bond; interest rate reflects the rate currently
in effect.
(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 November 30,
1996, these securities amount to a value of $2,493,943 or 6.3% of net
assets.
(e) Segregated as collateral.
(f) When issued.
(g) Par value represents Mexican Pesos.
See Notes to Financial Statements
35
<PAGE>
Emerging Markets Bond Portfolio
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1996
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $39,599,537) $42,117,857
Receivables
Investment securities sold 10,864,175
Fund shares sold 350,734
Interest 396,137
---------
Total assets 53,728,903
---------
Liabilities
Payables
Investment securities purchased 11,380,738
Custodian 2,785,176
Fund shares repurchased 87,037
Investment advisory fee 16,689
Distribution fee 13,382
Trustees' fee 11,179
Transfer agent fee 7,393
Financial agent fee 920
Accrued expenses 52,383
---------
Total liabilities 14,354,897
---------
Net Assets $39,374,006
=========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $30,332,625
Undistributed net investment income 161,377
Accumulated net realized gain 6,361,684
Net unrealized appreciation 2,518,320
---------
Net Assets $39,374,006
=========
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $29,660,948) 2,004,511
Net asset value per share $14.80
Offering price per share
$14.80/(1-4.75%) $15.54
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $9,713,058) 657,300
Net asset value and offering price per share $14.78
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1996
<TABLE>
<S> <C>
Investment Income
Interest $2,830,250
-----------
Total investment income 2,830,250
-----------
Expenses
Investment advisory fee 177,790
Distribution fee--Class A 46,409
Distribution fee--Class B 51,419
Financial agent fee 7,112
Registration 68,083
Transfer agent 51,062
Professional 44,500
Printing 26,321
Custodian 22,885
Trustees 21,543
Miscellaneous 1,000
-----------
Total expenses 518,124
Less expenses borne by investment adviser (123,979)
-----------
Net expenses 394,145
-----------
Net investment income 2,436,105
-----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 6,414,105
Net realized loss on foreign currency transactions (69,562)
Net change in unrealized appreciation (depreciation) on
investments 2,233,148
-----------
NET GAIN ON INVESTMENTS 8,577,691
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $11,013,796
===========
</TABLE>
See Notes to Financial Statements
36
<PAGE>
Emerging Markets Bond Portfolio
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year From Inception
Ended 9/5/95 to
November 30, 1996 11/30/95
----------------- ----------------
<S> <C> <C>
From Operations
Net investment income $2,436,105 $268,890
Net realized gain (loss) 6,344,543 (47,814)
Net change in unrealized appreciation
(depreciation) 2,233,148 285,172
----------- -----------
Increase in net assets resulting from operations 11,013,796 506,248
----------- -----------
From Distributions to Shareholders
Net investment income--Class A (1,792,007) (273,459)
Net investment income--Class B (458,779) (6,598)
----------- -----------
Decrease in net assets from distributions to
shareholders (2,250,786) (280,057)
----------- -----------
From Share Transactions
Class A
Proceeds from sales of shares (923,074 and
1,168,270 shares, respectively) 12,175,504 11,682,486
Net asset value of shares issued from
reinvestment of distributions (131,956 and 26,928
shares, respectively) 1,635,413 269,932
Cost of shares repurchased (243,677 and 2,040
shares, respectively) (3,184,227) (19,703)
----------- -----------
Total 10,626,690 11,932,715
----------- -----------
Class B
Proceeds from sales of shares (700,581 and 58,050
shares, respectively) 8,585,460 580,946
Net asset value of shares issued from
reinvestment of distributions (17,331 and 592
shares, respectively) 219,353 5,911
Cost of shares repurchased (119,165 and 89
shares, respectively) (1,565,347) (923)
----------- -----------
Total 7,239,466 585,934
----------- -----------
Increase in net assets from share transactions 17,866,156 12,518,649
----------- -----------
Net increase in net assets 26,629,166 12,744,840
Net Assets
Beginning of period 12,744,840 0
----------- -----------
End of period (including undistributed net
investment income of $161,377 and $5,701,
respectively) $39,374,006 $12,744,840
=========== ===========
</TABLE>
See Notes to Financial Statements
37
<PAGE>
Emerging Markets Bond Portfolio
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A Class B
---------------------------- ----------------------------
From From
Year Ended Inception Year Ended Inception
November 30, 9/5/95 to November 30, 9/5/95 to
1996 11/30/95 1996 11/30/95
-------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.18 $10.00 $10.18 $10.00
Income from investment operations
Net investment income 1.26(5) 0.25(4)(5) 1.19(5) 0.22(4)(5)
Net realized and unrealized gain 4.56 0.18 4.53 0.20
-------- -------- -------- --------
Total from investment operations 5.82 0.43 5.72 0.42
-------- -------- -------- --------
Less distributions
Dividends from net investment income (1.20) (0.25) (1.12) (0.24)
-------- -------- -------- --------
Total distributions (1.20) (0.25) (1.12) (0.24)
-------- -------- -------- --------
Change in net asset value 4.62 0.18 4.60 0.18
-------- -------- -------- --------
Net asset value, end of period $14.80 $10.18 $14.78 $10.18
======== ======== ======== ========
Total return(1) 60.18% 4.40%(3) 58.94% 4.22%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $29,661 $12,149 $9,713 $596
Ratio to average net assets of:
Operating expenses 1.50% 1.50%(2) 2.25% 2.25%(2)
Net investment income 10.41% 10.48%(2) 9.79% 10.29%(2)
Portfolio turnover 378% 38%(3) 378% 38%(3)
</TABLE>
(1) Maximum sales charges are not reflected in the total return calculation.
(2) Annualized
(3) Not annualized
(4) Computed using average shares outstanding.
(5) Includes reimbursement of operating expenses by investment adviser of
$0.07 and $0.03, respectively.
See Notes to Financial Statements
38
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 1996
1. SIGNIFICANT ACCOUNTING POLICIES
The Phoenix Multi-Portfolio 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. To date, seven Portfolios are offered for sale: Tax- Exempt Bond
Portfolio, Mid Cap Portfolio (formerly the Capital Appreciation Portfolio),
International Portfolio, Real Estate Securities Portfolio, Emerging Markets
Bond Portfolio, Endowment Equity Portfolio and Diversified Income Portfolio.
The Endowment Equity Portfolio and Diversified Income Portfolio are reported
separately from these financial statements. Each Portfolio has distinct
investment objectives. The Tax-Exempt Bond Portfolio seeks as high a level of
current income exempt from federal income taxation as is consistent with
preservation of capital. The Mid Cap Portfolio seeks as its investment
objective long-term appreciation of capital. The International Portfolio
seeks a high total return consistent with reasonable risk through investment
in an internationally diversified portfolio of equity securities. The Real
Estate Securities Portfolio seeks capital appreciation and income with
approximately equal emphasis. The Emerging Markets Bond Portfolio seeks to
achieve high current income with a secondary objective of long-term capital
appreciation.
The Trust offers both Class A and Class B shares. Class A shares are sold
with a front-end sales charge of up to 4.75%. Class B shares are sold with a
contingent deferred sales charge which declines from 5% to zero depending on
the period of time the shares are held. Both classes of shares have identical
voting, dividend, liquidation and other rights and the same terms and
conditions, except that each class bears different distribution expenses and
has exclusive voting rights with respect to its distribution plan. Income and
expenses of each Portfolio are borne pro rata by the holders of both classes
of shares, except that each class bears distribution expenses unique to that
class.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles. 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. Debt securities are valued on the basis
of broker quotations or valuations provided by a pricing service which
utilizes information with respect to recent sales, market transactions in
comparable securities, quotations from dealers, and various relationships
between securities in determining value. Short-term investments having a
remaining maturity of 60 days or less are valued at amortized cost which
approximates market. All other securities and assets are valued at 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. Interest income is
recorded on the accrual basis. Dividend income is recorded on the ex-dividend
date or, in the case of certain foreign securities, as soon as the portfolio
is notified. Realized gains and losses are determined on the identified
cost basis. The Trust does not amortize premiums but does amortize discounts
except for the Tax-Exempt Bond Portfolio which amortizes both premiums and
discounts over the life of the respective securities using the effective
interest method.
C. Income taxes:
Each of the Portfolios is treated as a separate taxable entity. It is the
policy of each Portfolio in the Trust to comply with the requirements of the
Internal Revenue Code (the Code), applicable to regulated investment
companies, and to distribute substantially all of its taxable and tax-exempt
income to its shareholders. In addition, each Portfolio 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 Portfolio 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,
operating losses 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
39
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 1996 (Continued)
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. Forward currency contracts:
The Mid Cap Portfolio, the Emerging Markets Bond Portfolio and the
International Portfolio may enter into forward currency contracts in
conjunction with the planned purchase or sale of foreign denominated
securities in order to hedge the U.S. dollar cost or proceeds. Forward
currency contracts involve, to varying degrees, elements of market risk in
excess of the amount recognized in the statement of assets and liabilities.
Risks arise from the possible movements in foreign exchange rates or if the
counterparty does not perform under the contract.
A forward currency contract involves an obligation to purchase or sell a
specific currency at a future date, which may be any number of days from the
date of the contract agreed upon by the parties, at a price set at the time
of the contract. These contracts are traded directly between currency traders
and their customers. The contract is marked- to-market daily and the change
in market value is recorded by each Portfolio as an unrealized gain (or
loss). When the contract is closed or offset with the same counterparty, the
Portfolio records a realized gain (or loss) equal to the change in the value
of the contract when it was opened and the value at the time it was closed or
offset.
G. Futures contracts:
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. A Portfolio may enter into
financial futures contracts as a hedge against anticipated changes in the
market value of their portfolio securities. Upon entering into a futures
contract the Portfolio is required to pledge to the broker an amount of cash
and/or securities equal to the "initial margin" requirements of the futures
exchange on which the contract is traded. Pursuant to the contract, the
Portfolio agrees to receive from or pay to the broker an amount of cash equal
to the daily fluctuation in value of the contract. Such receipts or payments
are known as variation margin and are recorded by the Portfolio as unrealized
gains or losses. When the contract is closed, the Portfolio records a
realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
The potential risk to the Portfolio is that the change in value of the
futures contract may not correspond to the change in value of the hedged
instruments.
H. Loan agreements:
The Trust may invest in direct debt instruments which are interests in
amounts owned by a corporate, governmental, or other borrower to lenders or
lending syndicates. The Trust's investments in loans may be in the form of
participations in loans or assignments of all or a portion of loans from
third parties. A loan is often administered by a bank or other financial
institution (the lender) that acts as agent for all holders. The agent
administers the terms of the loan, as specified in the loan agreement. When
investing in a loan participation, the Trust has the right to receive
payments of principal, interest and any fees to which it is entitled only
from the lender selling the loan agreement and only upon receipt by the
lender of payments from the borrower. The Trust generally has no right to
enforce compliance with the terms of the loan agreement with the borrower. As
a result, the Trust may be subject to the credit risk of both the borrower
and the lender that is selling the loan agreement. When the Trust purchases
assignments from lenders it acquires direct rights against the borrower on
the loan. Direct indebtedness of emerging countries involves a risk that the
government entities responsible for the repayment of the debt may be unable,
or unwilling to pay the principal and interest when due.
I. Security lending:
The Trust (with the exception of the Real Estate Securities Portfolio) loans
securities to qualified brokers through an agreement with State Street Bank &
Trust (the Custodian) and Brown Brothers, Harriman, custodian for the
International Portfolio. Under the terms of the agreement, the Trust receives
collateral with a market value not less than 100% of the market value of
loaned securities. Collateral consists of cash, securities issued or
guaranteed by the U.S. Government or its agencies and the sovereign debt of
foreign countries. Interest earned on the collateral and premiums paid by the
borrower are recorded as income by the Trust net of fees charged by the
Custodian for its services in connection with this securities lending
program. Lending portfolio securities involves a risk of delay in the
recovery of the loaned securities or in the foreclosure on collateral. At
November 30, 1996, the Trust had the following market value of security loans
and collateral:
Value of
Securities Value of
on Loan Collateral
-------------- -------------
Mid Cap Portfolio $28,440,000 $29,424,800
J. Expenses:
Expenses incurred by the Trust with respect to any two or more Portfolios
are allocated in proportion to the net assets of each Portfolio, except where
allocation of direct expense to each Portfolio or an alternative allocation
method can be more fairly made.
40
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 1996 (Continued)
K. When-Issued and delayed delivery transactions:
The Trust may engage in when-issued or delayed delivery transactions. The
Trust records when-issued securities on the trade date and maintains
collateral for the securities purchased. Securities purchased on a
when-issued or delayed delivery basis begin earning interest on the
settlement date.
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
As compensation for its services to the Trust, the Advisers, Phoenix
Investment Counsel, Inc., an indirect majority-owned subsidiary of Phoenix
Home Life Insurance Company ("PHL"), and Phoenix Realty Securities, Inc.
("PRS"), an indirect wholly-owned subsidiary of PHL, the Adviser for the Real
Estate Portfolio, are entitled to a fee, based upon the following annual
rates as a percentage of the average daily net assets of each Portfolio:
1st $1-2 $2+
$1 Billion Billion Billion
------------- --------- ----------
Tax-Exempt Bond Portfolio 0.45% 0.40% 0.35%
Mid Cap Portfolio 0.75% 0.70% 0.65%
International Portfolio 0.75% 0.70% 0.65%
Real Estate Securities Portfolio 0.75% 0.70% 0.65%
Emerging Markets Bond Portfolio 0.75% 0.70% 0.65%
Pursuant to a Sub-Advisory Agreement with the Trust, PRS delegates certain
investment decisions and research functions to ABKB/LaSalle Securities
Limited Partnership ("ABKB") for which ABKB is paid a fee by PRS equal to
0.45% of the average daily net assets of the Real Estate Securities
Portfolio.
The respective Advisers have agreed to reimburse the Real Estate Securities
Portfolio and the Emerging Markets Bond Portfolio to the extent that total
expenses (excluding interest, taxes, brokerage fees and commissions and
extraordinary expenses) exceed 1.30% and 1.50%, respectively, of the average
daily net assets for Class A shares and 2.05% and 2.25%, respectively, for
Class B shares.
Phoenix Equity Planning Corporation ("PEPCO") an indirect majority-owned
subsidiary of PHL, which serves as the national distributor of the Trust's
shares has advised the Trust that it retained net selling commissions of
$165,918 for Class A shares and deferred sales charges of $92,998 for Class B
shares for the year ended November 30, 1996. In addition, each Portfolio pays
PEPCO a distribution fee at an annual rate of 0.25% for Class A shares and
1.00% for Class B shares applied to the average daily net assets of each
Portfolio. The distributor has advised the Trust that of the total amount
expensed for the year ended November 30, 1996, $508,107 was retained by the
Distributor and $1,764,985 was paid out to unaffiliated Participants.
As Financial Agent to the Trust and to each Portfolio, PEPCO receives a fee
at an annual rate of 0.03% of the average daily net assets of each Portfolio
for bookkeeping, administrative and pricing services.
PEPCO serves as the Trust's Transfer Agent with State Street Bank and Trust
Company as sub-transfer agent. For the year ended November 30, 1996, transfer
agent fees were $1,763,614 of which PEPCO retained $605,114 which is net of
fees paid to State Street.
At November 30, 1996, PHL and its affiliates held Phoenix Multi-Portfolio
Fund shares which aggregated the following:
Aggregate
Shares Net Asset Value
------------ ---------------
Tax-Exempt Bond Portfolio--Class A 392,329 $ 4,421,551
International
Portfolio--Class A 407,330 5,898,138
Real Estate Securities
Portfolio--Class A 529,336 6,955,469
--Class B 10,693 140,079
Emerging Markets Bond
Portfolio--Class A 1,331,192 19,688,325
--Class B 11,215 165,651
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the year ended November 30, 1996
(excluding U.S. Government and agency securities, short-term securities,
futures contracts and forward currency contracts) aggregated the following:
Purchases Sales
---------------- ----------------
Tax-Exempt Bond Portfolio $ 37,685,259 $ 46,657,738
Mid Cap Portfolio 1,014,089,046 1,112,672,033
International Portfolio 194,049,666 203,267,130
Real Estate Securities Portfolio 15,913,498 5,320,765
Emerging Markets Bond Portfolio 111,943,459 90,091,682
There were no purchases or sales of long-term U.S. Government and agency
securities during the year ended November 30, 1996.
At November 30, 1996, the Tax-Exempt Bond Portfolio had entered into futures
contracts as follows:
Value of
Contracts Market Net
Number of when Value of Unrealized
Description Contracts Opened Contracts Depreciation
- -------------------- ------------ ------------- ------------- ---------------
U.S. Treasury
March, '97 (Short) 20 $2,300,000 $2,317,500 $(17,500)
41
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 1996 (continued)
4. FORWARD CURRENCY CONTRACTS
As of November 30, 1996, the International Portfolio had entered into the
following forward currency contracts which contractually obligate the Fund to
deliver currencies at specified dates:
In Net
Contracts Exchange Settlement Unrealized
to Deliver For Date Value Appreciation
- -------------------- --------------- ------------ ------------ --------------
DM 8,250,000 US 5,415,518 1/6/97 $5,386,794 $ 28,724
SF 6,530,000 US 5,242,033 1/6/97 5,044,672 197,361
YEN 1,073,000,000 US 9,710,846 1/6/97 9,485,749 225,097
--------
$451,182
========
DM = German Deutschemark US = U.S. Dollar
SF = Swiss Franc YEN = Japanese Yen
5. RECLASS OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, the Portfolios of the Trust
have recorded several reclassifications in the capital accounts. These
reclassifications have no impact on the net asset value of the Portfolios and
are designed generally to present undistributed income and realized gains on
a tax basis which is considered to be more informative to the shareholder. As
of November 30, 1996, the Portfolios recorded the following reclassifications
to increase (decrease) the accounts listed below.
Capital paid
Undistributed Accumulated in on shares
net investment net realized of beneficial
income gain (loss) interest
---------------- -------------- --------------
Tax-Exempt Bond Portfolio $ (46,716) $ 88,101 $(41,385)
Mid Cap Portfolio 914,819 (917,387) 2,568
International Portfolio 2,078,957 (2,078,957) --
Real Estate Securities Portfolio 12,612 -- (12,612)
Emerging Markets Bond Portfolio (29,643) 69,562 (39,919)
TAX NOTICE (Unaudited)
For the fiscal year ended November 30, 1996, the Tax-Exempt Bond Portfolio
distributed $7,556,869 of exempt-interest dividends.
For the fiscal year ended November 30, 1996 the Mid Cap Portfolio and the
International Portfolio distributed $8,612,420 and $375,113 of long-term
capital gain dividends, respectively.
This report is not authorized for distribution to prospective investors in
the Phoenix Multi-Portfolio Fund unless preceded or accompanied by an
effective prospectus which includes information concerning the sales charge,
the Fund's record and other pertinent information.
42
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[LOGOTYPE] Price Waterhouse LLP [LOGO]
To the Trustees and Shareholders of
Phoenix Multi-Portfolio Fund
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments (except for bond ratings), and the
related statements of operations and of changes in net assets and the
financial highlights present fairly, in all material respects, the financial
position of the Tax-Exempt Bond Portfolio, the Mid Cap Portfolio (formerly
the Capital Appreciation Portfolio), the International Portfolio, the Real
Estate Securities Portfolio and the Emerging Markets Bond Portfolio
(constituting separate series of the Multi-Portfolio Fund, hereafter referred
to as the "Fund") at November 30, 1996, and the results of each of their
operations, the changes in each of their net assets and the financial
highlights for each of the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at November 30, 1996 by
correspondence with the custodians and brokers (and the application of
alternative auditing procedures where confirmations from brokers were not
received), provide a reasonable basis for the opinion expressed above.
/s/ Price Waterhouse LLP
Boston, Massachusetts
January 10, 1997
43
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
101 Munson Street
Greenfield, MA 01301
Trustees
C. Duane Blinn
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Francis E. Jeffries
Leroy Keith, Jr.
Philip R. McLoughlin
Everett L. Morris
James M. Oates
Calvin J. Pedersen
Philip R. Reynolds
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
Officers
Philip R. McLoughlin, President
Michael E. Haylon, Executive Vice President
David R. Pepin, Executive Vice President
William J. Newman, Senior Vice President
David L. Albrycht, Vice President
Curtiss O. Barrows, Vice President
Mathew Considine, Vice President
Jeanne H. Dorey, Vice President
Timothy M. Heaney, Vice President
William E. Keen III, Vice President
Peter S. Lannigan, Vice President
David Lui, Vice President
Thomas S. Melvin, Jr., Vice President
William R. Moyer, Vice President
Scott C. Noble, Vice President
Barbara Rubin, Vice President
Leonard J. Saltiel, Vice President
James D. Wehr, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Investment Advisers
Phoenix Investment Counsel, Inc.
56 Prospect St.
Hartford, CT 06115-0480
Phoenix Realty Securities, Inc.
(Real Estate Securities Portfolio)
38 Prospect St.
Hartford, CT 06115-0479
Principal Underwriter
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, CT 06083-2200
Custodians
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Brown Brothers Harriman & Co.
(International Portfolio)
40 Water Street
Boston, MA 02109
Transfer Agent
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, CT 06083-2200
Legal Counsel
Jorden, Burt, Berenson & Johnson, LLP
Suite 400 East
1025 Thomas Jefferson Street N.W.
Washington, D.C. 20007-0805
Independent Accountants
Price Waterhouse LLP
160 Federal Street
Boston, MA 02110
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
Phoenix Multi-Portfolio Fund [POSTAGE PERMIT]
Bulk Rate Mail
P.O. Box 2200 U.S. Postage
Enfield, CT 06083-2200 PAID
Springfield, MA
Permit No.444
[LOGO] PHOENIX
DUFF & PHELPS
PDP 490 (1/97)
<PAGE>
[LOGOTYPE] PHOENIX
DUFF & PHELPS
PHOENIX MULTI-PORTFOLIO FUND
ENDOWMENT EQUITY PORTFOLIO
ANNUAL REPORT
NOVEMBER 30, 1996
<PAGE>
PHOENIX ENDOWMENT EQUITY PORTFOLIO
Despite increasing interest rates and waning corporate earnings momentum,
U.S. stock prices forged higher over this reporting period, fueled by
unprecedented cash inflows into equity mutual funds and continued corporate
share buybacks. Although this remarkable rally dates back to December 1994, the
past year has been one of tremendous rotation among various sectors of the stock
market -- a manifestation of increasing investor uncertainty over the direction
of interest rates and the economy. As measured by market capitalization, large
company stocks outperformed their small-cap counterparts by wide margins during
the fiscal year.
The continued rally in the U.S. stock market helped the Endowment Equity
Portfolio post double-digit returns over this latest reporting period. For the
twelve months ended November 30, 1996, the Fund provided a total return of
19.68% Although these results were strong on an absolute basis, they did lag
behind Standard & Poor's 500 Composite Stock Index, an unmanaged, commonly used
measure of stock performance, which returned 28.02% over the same period. All of
these figures assume reinvestment of any distributions, but exclude the effect
of sales charges.
Our equity exposure in the consumer cyclical sector as well as weakness in
some of our health care and technology holdings held back performance during
this reporting period. Positive contributors included our strong stock selection
in the consumer staples, financial, energy and basic materials sectors. Some of
our best individual performers during this period included such companies as
Intel, Tyco International, Gucci, Estee Lauder, Diamond Offshore Drilling and
Citicorp.
In a market caught between long-term concerns and intermediate
opportunities, we are maintaining exposure to growth companies that have some
sensitivity to the domestic economy and/or foreign sales growth. This includes
stocks in our Hybrid Network theme which concentrates on computer networking and
telecommunications equipment firms providing the hardware, software and the
services needed to help merge voice, data and video communications onto one
network. Deregulating Financial Services is another high conviction theme that
we developed which capitalizes on companies that can benefit from the
demographic shift to savings and investments and the continued trend of
government deregulation. Lastly, we continue to emphasize our Energy Technology
theme which represents energy service firms that provide productivity enhancing
solutions to exploration and production companies.
After two back to back years of powerful performance, the equity risk level
is rising. We believe that the key to 1997 outperformance lies in taking
advantage of market inefficiencies within a volatile trading range combined with
individual stock selection. Moving forward, we believe our key investment themes
will serve us well in this environment, given their ability to capture change
and identify strong earnings growth in a timely manner. As of November 30, 1996,
the Fund's asset allocation mix was 92% equities and 8% cash equivalents.
<PAGE>
ENDOWMENT EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
[LINE CHART]
Year End Endowment Equity S&P 500 Index*
- ------------- ------------------- ------------------
4/1/93 $10,000 $10,000
11/30/93 $11,123 $10,418
11/30/94 $10,481 $10,531
11/30/95 $14,187 $14,427
11/30/96 $16,980 $18,469
[/LINE CHART]
Average Annual Total Returns for Periods Ending 11/30/96
From Inception
4/1/93 to
1 Year 11/30/96
- --------------------------------------------------------------------------------
Endowment Equity Portfolio 19.68% 15.52%
- --------------------------------------------------------------------------------
S&P 500 Index* 28.02% 18.20%
- --------------------------------------------------------------------------------
This chart assumes an initial gross investment of $10,000 made on 4/1/93
(inception of the Fund). Returns shown include the reinvestment of all
distributions at net asset value and the change in share price for the stated
period. Returns indicate past performance, which is not predictive of future
performance. Investment return and net asset value will fluctuate, so that your
shares, when redeemed, may be worth more or less than the original cost.
* The S&P 500 Index is an unmanaged but commonly used measure of stock return
performance. The S&P 500's performance does not reflect sales charges.
2
<PAGE>
ENDOWMENT EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENTS AT NOVEMBER 30, 1996
<TABLE>
<CAPTION>
SHARES VALUE
---------- --------
<S> <C> <C> <C>
COMMON STOCKS 88.6%
Aerospace & Defense 3.5%
Boeing Company 100 $9,938
United Technologies Corp. 50 7,012
---------
16,950
---------
Banks 6.5%
BankAmerica Corp. 100 10,300
Chase Manhattan Corp. 100 9,450
Citicorp 100 10,925
---------
30,675
---------
Chemical 1.7%
Monsanto Co. 200 7,950
---------
Computer Software & Services 7.8%
Computer Associates International, Inc. 100 6,575
Computer Sciences Corp. (b) 100 7,863
First Data Corp. 200 7,975
Microsoft Corp. (b) 50 7,843
Oracle Systems Corp. (b) 150 7,350
---------
37,606
---------
Conglomerates 3.2%
Thermo Electron Corp. (b) 200 7,250
Tyco International Ltd. 150 8,213
---------
15,463
---------
Cosmetics & Soaps 3.5%
Colgate Palmolive Co. 100 9,263
Estee Lauder Companies Class A 150 7,500
---------
16,763
---------
Diversified Financial Services 6.9%
Associates First Capital Corp. 150 7,256
Federal National Mortgage Assoc. 250 10,312
First USA, Inc. 200 6,575
Travelers Group, Inc. 200 9,000
---------
33,143
---------
Diversified Miscellaneous 4.2%
CUC International, Inc. (b) 200 5,275
Duracell International, Inc. 100 6,662
Equifax, Inc. 250 8,188
---------
20,125
---------
Electrical Equipment 1.8%
Raychem Corp. 100 8,525
---------
Electronics 6.4%
Applied Materials, Inc. (b) 200 7,625
Intel Corp. 100 12,688
Perkin Elmer Corp. 100 6,162
Xilinx, Inc. (b) 100 4,387
---------
30,862
---------
Entertainment, Leisure & Gaming 1.5%
Walt Disney Co. 100 7,375
---------
Healthcare - Drugs 3.3%
Lilly (Eli) & Co. 100 7,650
Merck & Co., Inc. 100 8,300
---------
15,950
---------
See Notes to Financial Statements
3
<PAGE>
ENDOWMENT EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENTS AT NOVEMBER 30, 1996
SHARES VALUE
---------- ---------
<S> <C> <C> <C>
Hospital Management & Services 2.8%
Columbia/HCA Healthcare Corp. 150 6,000
HEALTHSOUTH Corp. (b) 200 7,525
---------
13,525
---------
Insurance 2.6%
Allstate Corp. 100 6,025
SunAmerica, Inc. 150 6,281
---------
12,306
---------
Machinery 2.8%
Case Corp. 100 5,250
Dover Corp. 150 8,006
---------
13,256
---------
Medical Products & Supplies 6.0%
Boston Scientific Corp. (b) 150 8,756
Guidant Corp. 100 5,288
Johnson & Johnson 150 7,969
Medtronic, Inc. 100 6,612
---------
28,625
---------
Natural Gas 3.2%
Apache Corp. 200 7,275
Burlington Resources, Inc. 150 7,950
---------
15,225
---------
Oil Service & Equipment 8.7%
BJ Services Co. (b) 100 4,775
Diamond Offshore Drilling (b) 150 9,563
Dresser Industries, Inc. 200 6,550
Halliburton Co. 100 6,025
Schlumberger Ltd. 100 10,400
Weatherford Enterra, Inc. (b) 150 4,575
---------
41,888
---------
Paper & Forest Products 2.0%
Kimberly Clark Corp. 100 9,775
---------
Pollution Control 1.3%
U.S.A. Waste Services, Inc. (b) 200 6,450
---------
Retail 6.1%
CVS Corp. 200 8,225
Home Depot, Inc. 150 7,819
Lowe's Companies, Inc. 200 8,125
Staples, Inc. (b) 250 4,937
---------
29,106
---------
Telecommunications Equipment 2.8%
Cisco Systems, Inc. (b) 100 6,788
Lucent Technologies, Inc. 129 6,611
---------
13,399
---------
TOTAL COMMON STOCKS
(Identified cost $354,931) 424,942
---------
See Notes to Financial Statements
4
<PAGE>
ENDOWMENT EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENTS AT NOVEMBER 30, 1996
SHARES VALUE
-------- ---------
<S> <C> <C> <C>
FOREIGN COMMON STOCKS 3.3%
Cosmetics & Soaps 1.8%
Unilever NV (Netherlands) 50 8,656
----------
Textile & Apparel 1.5%
Gucci Group NV-NY Reg Shrs (Italy) 100 7,338
----------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $12,216) 15,994
----------
TOTAL INVESTMENTS 91.9%
(Identified cost $367,147) 440,936 (a)
Cash and receivables, less liabilities 8.1% 38,620
----------
NET ASSETS 100.0% $479,556
==========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $74,855, and gross
depreciation of $2,391 for federal income tax purposes. At November 30,
1996, the aggregate cost of securities for federal income tax purposes was
$368,472.
(b) Non-income producing.
See Notes to Financial Statements
5
<PAGE>
Endowment Equity Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1996
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $367,147) $440,936
Cash 68,841
Receivables
Interest and dividends 1,273
Receivable from adviser 14,025
---------
Total assets 525,075
---------
Liabilities
Payables
Trustees' fee 11,179
Transfer agent fee 1,557
Financial agent fee 33
Accrued expenses 32,750
---------
Total liabilities 45,519
---------
Net Assets $479,556
=========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $269,337
Undistributed net investment income 1,358
Accumulated net realized gains 135,072
Net unrealized appreciation 73,789
---------
Net Assets $479,556
=========
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization 35,727
Net asset value and offering price per share $13.42
</TABLE>
See Notes to Financial Statements
6
<PAGE>
Endowment Equity Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
NOVEMBER 30, 1996
<TABLE>
<S> <C>
Investment Income
Dividends $25,542
Interest 8,483
---------
Total investment income 34,025
---------
Expenses
Investment advisory fee 20,860
Financial agent fee 834
Professional 34,184
Trustees 20,444
Transfer agent 18,327
Registration 11,378
Custodian 12,434
Printing 5,661
Miscellaneous 174
---------
Total expenses 124,296
Less expenses borne by investment adviser (102,855)
---------
Net expenses 21,441
---------
Net investment income 12,584
---------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 794,465
Net change in unrealized appreciation (depreciation) on investments (375,286)
---------
Net gain on investments 419,179
---------
Net increase in net assets resulting from operations $431,763
=========
</TABLE>
See Notes to Financial Statements
7
<PAGE>
Endowment Equity Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
November 30, 1996 November 30, 1995
----------------- -----------------
<S> <C> <C>
From Operations
Net investment income $12,584 $41,001
Net realized gain 794,465 882,876
Net change in unrealized appreciation (depreciation) (375,286) 378,110
----------- -----------
Increase in net assets resulting from operations 431,763 1,301,987
----------- -----------
From Distributions to Shareholders
Net investment income (12,904) (70,324)
Net realized gains (558,885) -
----------- -----------
Decrease in net assets from distributions to shareholders (571,789) (70,324)
----------- -----------
From Share Transactions
Proceeds from sales of shares (0 and 23,742, respectively) - 250,000
Net asset value of shares issued from reinvestment
of distributions (51,281 and 6,812 shares, respectively) 571,782 70,324
Cost of shares repurchased
(331,984 and 168,483 shares, respectively) (4,073,751) (1,873,000)
----------- -----------
Decrease in net assets from share transactions (3,501,969) (1,552,676)
----------- -----------
Net decrease in net assets (3,641,995) (321,013)
Net Assets
Beginning of period 4,121,551 4,442,564
----------- -----------
End of period (including undistributed net investment income of
$1,358 and $10,369, respectively) $479,556 $4,121,551
=========== ===========
</TABLE>
See Notes to Financial Statements
8
<PAGE>
Endowment Equity Portfolio
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
From
Year Year Year Inception
Ended Ended Ended 4/1/93 to
November 30, 1996 November 30, 1995 November 30, 1994 11/30/93
----------------- ----------------- ----------------- --------
<S> <C> <C> <C> <C>
Net Asset value, beginning of period $13.03 $ 9.78 $ 11.09 $ 10.00
Income from investment operations
Net investment income 0.06(1)(4) 0.11(1)(4) 0.14(1) 0.10(1)
Net realized and unrealized gain (loss) 2.14 3.31 (0.73) 1.02
------ ------- ------- -------
Total from investment operations 2.20 3.42 (0.59) 1.12
------ ------- ------- -------
Less distributions
Dividends from net investment income (0.04) (0.17) (0.14) (0.03)
Distributions from net realized gains (1.77) -- (0.58) --
------ ------- ------- -------
Total distributions (1.81) (0.17) (0.72) (0.03)
------ ------- ------- -------
Change in net asset value 0.39 3.25 (1.31) 1.09
------ ------- ------- -------
Net asset value, end of period $13.42 $ 13.03 $ 9.78 $ 11.09
====== ======= ======= =======
Total return 19.68% 35.35% -5.77% 11.23%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $480 $4,122 $4,443 $4,944
Ratio to average net assets of:
Operating expenses 0.77% 0.85% 0.85% 0.85%(2)
Net investment income 0.45% 0.95% 1.42% 1.54%(2)
Portfolio turnover 142% 248% 250% 312%(2)
Average commission rate (5) $0.0503 N/A N/A N/A
</TABLE>
(1)Includes reimbursement of operating expenses by investment adviser of
$0.45, $0.24, $0.15 and $0.15, respectively. For the year ended November
30, 1996, $0.01 of the reimbursement is in excess of the expense limitation
described in Note 2.
(2)Annualized
(3)Not annualized
(4)Computed using average shares outstanding
(5)For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for securities
trades on which commissions are charged. This rate generally does not
reflect mark-ups, mark-downs, or spreads on shares traded on a principal
basis.
See Notes to Financial Statements
9
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
ENDOWMENT EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
November 30, 1996
1. SIGNIFICANT ACCOUNTING POLICIES
The Phoenix Multi-Portfolio 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.
To date, The Trust consists of seven Portfolios: Endowment Equity Portfolio,
Diversified Income Portfolio, Tax-Exempt Bond Portfolio, International
Portfolio, Mid Cap Portfolio (formerly Capital Appreciation Portfolio), Emerging
Markets Bond Portfolio and Real Estate Securities Portfolio. This report only
covers the Endowment Equity Portfolio (the "Portfolio"). The Fund's investment
objective is to achieve long-term appreciation of capital.
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 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. Interest income is
recorded on the accrual basis. Dividend income is recorded on the ex-dividend
date. Realized gains or losses are determined on the identified cost basis.
C. Security lending:
The Trust loans securities to qualified brokers through an agreement with
State Street Bank & Trust (the Custodian). Under the terms of the agreement, the
Trust receives collateral with a market value not less than 100% of the market
value of loaned securities. Collateral consists of cash, securities issued or
guaranteed by the U.S. Government or its agencies and the sovereign debt of
foreign countries. Interest earned on the collateral and premiums paid by the
borrower are recorded as income by the Trust net of fees charged by the
Custodian for its services in connection with this securities lending program.
Lending portfolio securities involves a risk of delay in the recovery of the
loaned securities or in the foreclosure on collateral. At November 30, 1996, the
Endowment Equity Portfolio had no security loans outstanding.
D. Income taxes:
Each of the Portfolios is treated as a separate taxable entity. It is the
policy of each Portfolio in the Trust to comply with the requirements of the
Internal Revenue Code (the Code), applicable to regulated investment companies,
and to distribute substantially all of its taxable income to its shareholders.
In addition, each Portfolio 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.
E. Distributions to shareholders:
Distributions are recorded by each Portfolio 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 foreign currency gain/loss,
partnerships, and losses deferred due to wash sales and excise tax regulations.
The Portfolio also utilized earnings and profits distributed to shareholders on
redemption of shares as a part of the dividends paid deduction for income tax
purposes. Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
10
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
ENDOWMENT EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
November 30, 1996 (Continued)
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 Insurance Company ("PHL") is entitled to a fee, based on an annual rate of
0.75% of the average daily net assets of the Endowment Equity Portfolio. The
Adviser has agreed to reimburse the Endowment Equity Portfolio to the extent
that expenses exceed 0.85% of the average daily net assets.
As Financial Agent to the Trust and to each Portfolio, Phoenix Equity
Planning Corporation ("PEPCO"), receives a fee at an annual rate of 0.03% of the
average daily net assets for bookkeeping, administrative and pricing services.
PEPCO serves as the Trust's Transfer Agent with State Street Bank and Trust
Company as sub-transfer agent. For the year ended November 30, 1996, transfer
agent fees were $18,327 which were all paid to State Street.
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the year ended November 30, 1996
(excluding U.S. Government securities and short-term securities) were $3,607,939
and $7,735,773, respectively.
There were no purchases or sales of U.S. Government securities.
4. OTHER
As of November 30, 1996, the Endowment Equity Portfolio had one shareholder
who owned more than 10% of shares outstanding, who is not affiliated with PHL.
In the aggregate, this shareholder owned 99.9% of shares outstanding.
5. RECLASS OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, the Portfolio has recorded
several reclassifications in the capital accounts. These reclassifications have
no impact on the net asset value of the Portfolio and are designed generally to
present undistributed income and realized gains on a tax basis which is
considered to be more informative to the shareholder. As of November 30, 1996,
the Portfolio has decreased undistributed net investment income by $8,691,
decreased accumulated net realized gains by $655,152, and increased capital paid
in on shares of beneficial interest by $663,843.
TAX INFORMATION NOTICE (Unaudited)
For the fiscal year ended November 30, 1996, the fund distributed $286,141
of long-term capital gain dividends.
This report is not authorized for distribution to prospective investors in the
Phoenix Endowment Equity Portfolio unless preceded or accompanied by an
effective prospectus which includes information concerning the Fund's record and
other pertinent information.
11
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[LOGOTYPE] Price Waterhouse LLP
To the Trustees and Shareholders of
Phoenix Endowment Equity Portfolio
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Phoenix Endowment Equity Portfolio
(the "Fund") at November 30, 1996, and the results of its operations, the
changes in its net assets and the financial highlights for each of the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
November 30, 1996 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
Boston, Massachusetts
January 15, 1997
12
<PAGE>
PHOENIX ENDOWMENT EQUITY PORTFOLIO
101 Munson Street
Greenfield, MA 01301
Trustees Principal Underwriter
C. Duane Blinn Phoenix Equity Planning Corporation
Robert Chesek 100 Bright Meadow Boulevard
E. Virgil Conway P. O. Box 2200
Harry Dalzell-Payne Enfield, CT 06083-2200
Francis E. Jeffries
Leroy Keith, Jr.
Philip R. McLoughlin Custodian
Everett L. Morris State Street Bank and Trust Company
James M. Oates P. O. Box 351
Calvin J. Pedersen Boston, MA 02101
Philip R. Reynolds
Herbert Roth, Jr.
Richard E. Segerson Transfer Agent
Lowell P. Weicker, Jr. Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
Officers P. O. Box 2200
Philip R. McLoughlin, President Enfield, CT 06083-2200
Michael E. Haylon, Executive Vice President
David R. Pepin, Executive Vice President
William J. Newman, Senior Vice President Legal Counsel
David L. Albrycht, Vice President Jorden, Burt, Berenson & Johnson LLP
Curtiss O. Barrows, Vice President Suite 400 East
Matthew Considine, Vice President 1025 Thomas Jefferson Street, N.W.
Jeanne H. Dorey, Vice President Washington, D.C. 20007-0805
Timothy M. Heaney, Vice President
William E. Keen III, Vice President
Peter S. Lannigan, Vice President Independent Accountants
David Lui, Vice President Price Waterhouse LLP
Thomas S. Melvin, Jr., Vice President 160 Federal Street
William R. Moyer, Vice President Boston, MA 02110
Scott C. Noble, Vice President
Barbara Rubin, Vice President
Leonard J. Saltiel, Vice President
James D. Wehr, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Investment Adviser
Phoenix Investment Counsel, Inc.
56 Prospect Street
Hartford, CT 06115-0480
<PAGE>
[LOGOTYPE] PHOENIX
DUFF & PHELPS
PHOENIX MULTI-PORTFOLIO FUND
DIVERSIFIED INCOME PORTFOLIO
ANNUAL REPORT
NOVEMBER 30, 1996
<PAGE>
PHOENIX DIVERSIFIED INCOME PORTFOLIO
Shifting market opinion over the direction of the U.S. economy was
responsible for much of the volatility in interest rates during this latest
twelve-month reporting period. During December and January, the Federal Reserve
cut the Fed Funds Rate in an effort to stimulate what was believed to be a
sluggish economy. Although it was widely anticipated that the Fed would have to
lower rates again, a surprisingly strong February employment report provided
conflicting evidence about the economy's condition. As more information became
available, it became evident that the economy had grown robustly over the first
half of 1996. During this period, interest rates were pushed higher as the
financial markets had to consider the threat of future inflation.
By late summer, the consensus view on Wall Street shifted once again as
signs of more moderate economic growth became increasingly apparent and concerns
over inflation declined. These signs of a slower economy allowed interest rates
to fall for the remainder of the reporting period. In total, the yield on the
bellweather 30-year Treasury bond ranged from as low as 5.95% to high as 7.19%
over the last twelve months. Despite all these market gyrations, the "long bond"
finished the reporting period at 6.36% -- only 28 basis points higher than where
it started one year ago.
Despite a challenging bond market environment, the Diversified Fixed-Income
Portfolio posted outstanding results over this latest reporting cycle. For the
twelve-month period ended November 30, 1996, the Fund provided a total return of
15.32%. These results compare very favorably with the Lehman Brothers Aggregate
Bond Index return of 6.07% over the same period. All of these returns assume
reinvestment of any distributions, but exclude the effect of sales charges.
The Fund's strong performance over the latest reporting period can be
attributed primarily to its holdings in the emerging markets and corporate
high-yield sectors as well as its commercial and non-agency residential
mortgage-backed exposure. Although often overlooked by many bond investors, our
focus on taxable municipal securities also enhanced the Fund's overall results.
As of November 30, 1996, the Fund had an average credit quality of "BBB" and its
average duration was 4.89 years.
Outlook
As we move closer to year-end, we are pleased to see that much of the
pessimism that has afflicted the bond market during 1996 appears to have
subsided. Although concerns over inflation are still present, the latest
economic data suggests that we could see a slower economy going forward. If this
outlook is correct, it will be a welcome relief for the fixed-income market.
Looking ahead, we have not made any drastic modifications to the Fund's
sector strategy. As a result of an improving real estate market and growing
institutional investor demand, we still favor commercial mortgage-backed
securities relative to investment-grade corporates. Non-agency residential
mortgage-backed securities also look attractive versus agency mortgage-backed
securities, as they offer a significant yield advantage. We continue to maintain
our exposure to the taxable municipal sector as well as asset-backed securities.
Lastly, despite the extended rally in the emerging markets sector, we are
finding attractive valuations in countries like Mexico, Argentina, Brazil and
Venezuela. As always, we will continue to overweight undervalued sectors of the
bond market as our primary means of adding value relative to our benchmark, the
Lehman Brothers Aggregate Bond Index.
<PAGE>
DIVERSIFIED INCOME PORTFOLIO
- --------------------------------------------------------------------------------
[LINE GRAPH]
Year End Diversified Income Portfolio Lehman Brothers Aggregate Bond Index*
- -------- ---------------------------- -------------------------------------
4/1/93 $10,000 $10,000
11/30/93 $10,535 $10,482
11/30/94 $9,981 $10,162
11/30/95 $11,643 $11,955
11/30/96 $13,427 $12,681
[/LINE GRAPH]
Average Annual Total Returns for Periods Ending 11/30/96
From Inception
4/1/93 to
1 Year 11/30/96
- --------------------------------------------------------------------------------
Diversified Income Portfolio 15.32% 8.36%
- --------------------------------------------------------------------------------
Lehman Brothers Aggregate Bond Index* 6.07% 6.69%
- --------------------------------------------------------------------------------
This chart assumes an initial gross investment of $10,000 made on 4/1/93
(inception of the Fund). Returns shown include the reinvestment of all
distributions at net asset value and the change in share price for the stated
period. Returns indicate past performance, which is not predictive of future
performance. Investment return and net asset value will fluctuate, so that your
shares, when redeemed, may be worth more or less than the original cost.
* The Lehman Brothers Aggregate Bond Index is an unmanaged but commonly used
measure of bond performance. It is a combination of several Lehman Brothers
fixed income indices. The index's performance does not include sales charges.
2
<PAGE>
DIVERSIFIED INCOME PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENTS AT NOVEMBER 30, 1996
<TABLE>
<CAPTION>
MOODY'S
BOND PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- --------- ---------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT SECURITIES 3.0%
U.S. Treasury Bonds 3.0%
U.S. Treasury Bond 6.75%, '26 Aaa $125 $130,347
U.S. Treasury Bond 6.50%, '26 Aaa 50 50,937
-----------
181,284
-----------
TOTAL U.S. GOVERNMENT SECURITIES
(Identified cost $174,112) 181,284
-----------
NON-CONVERTIBLE BONDS 56.5%
Asset-Backed Securities 7.3%
Airplanes Pass Through Trust 1C 8.15%, '19 Baa 100 106,274
Green Tree Financial Corp. 95-8, A2 6.15%, '26 Aaa 200 200,594
Green Tree Financial Corp. 96-3, B1 7.70%, '27 Baa 125 128,184
-----------
435,052
-----------
Hospital Management & Services 4.6%
Healthsouth Rehabilitation Sr. Sub Notes 9.50%, '01 Ba 125 133,437
Tenet Healthcare Corp. Sr. Note 9.625%, '02 Ba 125 138,281
-----------
271,718
-----------
Non-Agency Mortgage Backed Securities 39.0%
Bear Stearns Mortgage 144A 95-1, 2B3 7.40%, '10 (d) NR 229 207,794
General Electric Capital Mortgage Services, Inc. 96-8, 2A5 7.50%, '26 AAA (b) 224 227,177
Lehman Structured Securities Corp. 96-1, E1 7.995%, '26 BBB (b) 250 258,047
Morgan Stanley Capital 144A, I 96-WF1, C 6.59%, '06 (d) A 200 196,000
Norwest Asset Securities Corp. 96-3, B2 7.25%, '26 BBB (b) 150 145,863
Oakwood Mortgage Investors 96-C, A2 6.45%, '27 (f) AAA (b) $150 150,703
Residential Asset Securitization Trust 96-A8, C2 8%, '26 AAA (b) 122 125,037
Resolution Trust Corp. 92-C3, B 9.05%, '23 AA (b) 192 197,662
Resolution Trust Corp. 93-C1, B 8.75%, '24 (f) Aa 200 205,719
Resolution Trust Corp. 95-C1, B 6.90%, '27 (f) Aa 250 250,469
Resolution Trust Corp. 95-1 B2 7.50%, '28 (f) Aa 110 111,026
Resolution Trust Corp. 95-2, C1 7.45%, '29 Baa 124 124,417
Structured Asset Securities Corp. 96-CFL, E 7.75%, '28 BB+ (b) 125 124,688
-----------
2,324,602
-----------
Paper & Forest Products 2.1%
Buckeye Cellulose Corp. 8.50%, '05 (f) Ba 125 124,062
-----------
Telecommunications Equipment 3.5%
Cablevision Systems Corp. 9.875%, '06 B 125 125,938
Panamsat Sr. Note 9.75%, '00 Ba 80 84,800
-----------
210,738
-----------
TOTAL NON-CONVERTIBLE BONDS
(Identified cost $3,291,902) 3,366,172
-----------
FOREIGN NON-CONVERTIBLE BONDS 11.0%
Brazil 2.6%
Tevecap SA 144A 12.625%, '04 (d) B 150 153,375
-----------
Indonesia 1.3%
Asia Pulp & Paper Co. Yankee 11.75%, '05 Ba 75 80,438
-----------
See Notes to Financial Statements
3
<PAGE>
DIVERSIFIED INCOME PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENTS AT NOVEMBER 30, 1996
MOODY'S
BOND PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- --------- ---------------
<S> <C> <C> <C> <C>
Mexico 3.5%
Banco Nacional de Mexico Private WI 7.57%, '00 (e) A- (b) $125 $124,696
Grupo Televisa SA 0%, '08 (c) Ba (b) 125 82,188
-----------
206,884
-----------
Venezuela 3.6%
Banco Central Venezuela NMB B-P 6.625%, '05 (c) Ba 250 215,312
-----------
TOTAL FOREIGN NON-CONVERTIBLE BONDS
(Identified cost $634,528) 656,009
-----------
FOREIGN GOVERNMENT SECURITIES 15.2%
Argentina 8.1%
Republic Of Argentina Bearer FRB 6.625%, '05 (c) B 564 487,075
-----------
Brazil 3.1%
Republic of Brazil DCB-L Euro 6.563%, '12 (c) B 250 185,468
-----------
Mexico 4.0%
United Mexican States Global Bond 11.50%, '26 Ba 225 235,856
-----------
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified cost $845,669) 908,399
-----------
MUNICIPAL BONDS 13.9%
California 4.7%
Kern County Pension Obligation Taxable 7.26%, '14 Aaa 150 153,371
Orange County Pension A Taxable 7.67%, '09 Aaa 120 128,273
-----------
281,644
-----------
Florida 4.3%
Dade County Educational Facs. Authority 5.75%, '20 Aaa 25 25,584
University of Miami Exchange Revenue Taxable 7.40%, '11 (f) Aaa 150 155,432
University of Miami Exchange Revenue A Taxable 7.65%, '20 Aaa 75 76,858
-----------
257,874
-----------
Michigan 0.8%
Hartland Consolidated School District 5.125%, '22 Aaa 50 47,388
-----------
Pennsylvania 3.3%
Pennsylvania Economic Development Financial Authority 9.50%, '12 NR 200 194,794
-----------
Texas 0.8%
Texas State Turnpike Authority Dallas 5.25%, '23 Aaa 50 48,552
-----------
TOTAL MUNICIPAL BONDS
(Identified cost $823,870) 830,252
-----------
TOTAL LONG-TERM INVESTMENTS 99.6%
(Identified cost $5,770,081) 5,942,116
-----------
See Notes to Financial Statements
4
<PAGE>
DIVERSIFIED INCOME PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENTS AT NOVEMBER 30, 1996
PAR
VALUE
(000) VALUE
-------- ---------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS 3.3%
Federal Agency Securities 3.3%
Federal Home Loan Mortgage 5.70%, 12-2-96 $195 $194,969
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $194,969) 194,969
-----------
TOTAL INVESTMENTS 102.9%
(Identified cost $5,965,050) 6,137,085 (a)
Cash and receivables, less liabilities -2.9% (170,403)
-----------
NET ASSETS 100.0% $5,966,682
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $184,548 and gross
depreciation of $17,662. At November 30, 1996, the aggregate cost of
securities for federal income tax purposes was $5,970,199.
(b) As rated by Standard & Poor's, Fitch, or Duff & Phelps.
(c) Variable or step coupon bond; the interest rate shown reflects the rate
currently in effect.
(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 November 30,
1996, these securities amounted to a value of $681,865 or 11.4% of net
assets.
(e) When issued.
(f) Segregated as collateral.
See Notes to Financial Statements
5
<PAGE>
Diversified Income Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1996
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $5,965,050) $6,137,085
Cash 103,714
Receivables
Investment securities sold 259,655
Interest 73,545
Receivable from adviser 1,483
------------
Total assets 6,575,482
------------
Liabilities
Payables
Investment securities purchased 570,612
Trustees' fee 11,179
Transfer agent fee 1,502
Financial agent fee 145
Accrued expenses 25,362
------------
Total liabilities 608,800
------------
Net Assets $5,966,682
============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $5,723,329
Undistributed net investment income 3,918
Accumulated net realized gain 67,400
Net unrealized appreciation 172,035
------------
Net Assets $5,966,682
============
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization 594,592
Net asset value and offering price per share $10.03
</TABLE>
See Notes to Financial Statements
6
<PAGE>
Diversified Income Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
NOVEMBER 30, 1996
<TABLE>
<S> <C>
Investment Income
Interest $477,668
----------
Total investment income 477,668
----------
Expenses
Investment advisory fee 27,273
Financial agent fee 1,636
Professional 25,663
Trustees 20,288
Transfer agent 18,302
Registration 15,251
Custodian 9,644
Printing 3,908
Miscellaneous 517
----------
Total expenses 122,482
Less expenses borne by investment adviser (87,028)
----------
Net expenses 35,454
----------
Net investment income 442,214
----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 254,797
Net change in unrealized appreciation (depreciation) on investments 100,101
----------
Net gain on investments 354,898
----------
Net increase in net assets resulting from operations $797,112
==========
</TABLE>
See Notes to Financial Statements
7
<PAGE>
Diversified Income Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
Year Ended Year Ended
November 30, 1996 November 30, 1995
----------------------- -----------------------
<S> <C> <C>
From Operations
Net investment income $442,214 $191,180
Net realized gain (loss) 254,797 (129,893)
Net change in unrealized appreciation (depreciation) 100,101 230,771
----------- -----------
Increase in net assets resulting from operations 797,112 292,058
----------- -----------
From Distributions to Shareholders
Net investment income (451,539) (192,506)
----------- -----------
Decrease in net assets from distributions to shareholders (451,539) (192,506)
----------- -----------
From Share Transactions
Proceeds from sales of shares (0 and 532,482, respectively) - 5,000,000
Net asset value of shares issued from reinvestment of distributions
(47,353 and 20,765 shares, respectively) 451,539 192,501
Cost of shares repurchased
(1 and 204,479 shares, respectively) (5) (1,902,635)
----------- -----------
Increase in net assets from share transactions 451,534 3,289,866
----------- -----------
Net increase in net assets 797,107 3,389,418
Net Assets
Beginning of period 5,169,575 1,780,157
----------- -----------
End of period (including undistributed net investment income
of $3,918 and $10,398, respectively) $5,966,682 $5,169,575
=========== ===========
</TABLE>
See Notes to Financial Statements
8
<PAGE>
Diversified Income Portfolio
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
From
Year Year Year Inception
Ended Ended Ended 4/1/93 to
November 30, 1996 November 30, 1995 November 30, 1994 11/30/93
----------------- ----------------- ----------------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.45 $ 8.97 $ 10.12 $ 10.00
Income from investment operations
Net investment income 0.78(1) 0.91(1) 0.63(1) 0.40(1)
Net realized and unrealized gain (loss) 0.59 0.51 (1.13) 0.12
Total from investment operations 1.37 1.42 (0.50) 0.52
------ ------ ------ ------
Less distributions
Dividends from net investment income (0.79) (0.94) (0.59) (0.40)
Distributions from net realized gains -- -- (0.06) --
------ ------ ------ ------
Total distributions (0.79) (0.94) (0.65) (0.40)
------ ------ ------ ------
Change in net asset value 0.58 0.48 (1.15) 0.12
------ ------ ------ ------
Net asset value, end of period $10.03 $ 9.45 $ 8.97 $ 10.12
====== ====== ======== =======
Total return 15.32% 16.65% -5.26% 5.35%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $5,967 $5,170 $1,780 $1,989
Ratio to average net assets of:
Operating expenses 0.65% 0.65% 0.65% 0.65%(2)
Net investment income 8.11% 7.60% 6.64% 6.13%(2)
Portfolio turnover 231% 618% 124% 183%(2)
</TABLE>
(1)Includes reimbursement of operating expenses by investment adviser of
$0.15, $0.40, $0.34 and $0.35, respectively.
(2)Annualized
(3)Not annualized
See Notes to Financial Statements
9
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
DIVERSIFIED INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
November 30, 1996
1. SIGNIFICANT ACCOUNTING POLICIES
The Phoenix Multi-Portfolio 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.
To date, the Trust consists of seven Portfolios: Endowment Equity Portfolio,
Diversified Income Portfolio, Tax-Exempt Bond Portfolio, International
Portfolio, Mid Cap Portfolio (formerly Capital Appreciation Portfolio), Emerging
Markets Bond Portfolio and Real Estate Securities Portfolio. This report only
covers the Diversified Income Portfolio (the "Portfolio"). The Portfolio's
investment objective is to achieve current income through investment primarily
in publicly-traded, investment quality debt securities.
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 amount of assets, liabilities, revenues and expenses. Actual
results could differ from those estimates.
A. Security valuation:
Debt securities are valued on the basis of broker quotations or valuations
provided by a pricing service which utilizes information with respect to recent
sales, market transactions in comparable securities, quotations from dealers,
and various relationships between securities in determining value.
Short-term investments having a remaining maturity of 60 days or less are
valued at amortized cost which approximates market. All other securities and
assets are valued at 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. Interest income is
recorded on the accrual basis. The Portfolio does not amortize premiums but does
amortize discounts using the effective interest method. Realized gains or losses
are determined on the identified cost basis.
C. Security lending:
The Trust loans securities to qualified brokers through an agreement with
State Street Bank & Trust (the Custodian). Under the terms of the agreement, the
Trust receives collateral with a market value not less than 100% of the market
value of loaned securities. Collateral consists of cash, securities issued or
guaranteed by the U.S. Government or its agencies and the sovereign debt of
foreign countries. Interest earned on the collateral and premiums paid by the
borrower are recorded as income by the Trust net of fees charged by the
Custodian for its services in connection with this securities lending program.
Lending portfolio securities involves a risk of delay in the recovery of the
loaned securities or in the foreclosure on collateral. At November 30, 1996, the
Diversified Income Portfolio had no security loans outstanding.
D. Income taxes:
Each of the Portfolios is treated as a separate taxable entity. It is the
policy of each Portfolio in the Trust to comply with the requirements of the
Internal Revenue Code (the Code), applicable to regulated investment companies,
and to distribute substantially all of its taxable income to its shareholders.
In addition, each Portfolio 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.
E. Distributions to shareholders:
Distributions are recorded by each Portfolio 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 expiring capital loss carryforwards,
foreign currency gain/loss, 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.
10
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
DIVERSIFIED INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
November 30, 1996 (Continued)
F. When-Issued and delayed delivery transactions:
Each Portfolio may engage in when-issued or delayed delivery transactions.
The Portfolio records when- issued securities on the trade date and maintains
collateral for the securities purchased. Securities purchased on a when-issued
or delayed delivery basis begin earning interest on the settlement date.
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 Insurance Company ("PHL") is entitled to a fee, based on an annual rate of
0.50% of the average daily net assets of the Diversified Income Portfolio. The
Adviser has agreed to reimburse the Diversified Income Portfolio to the extent
that expenses exceed 0.65% of the average daily net assets.
As Financial Agent to the Trust and to each Portfolio, Phoenix Equity
Planning Corporation ("PEPCO"), receives a fee at an annual rate of 0.03% of the
average daily net assets for bookkeeping, administrative and pricing services.
PEPCO serves as the Trust's Transfer Agent with State Street Bank and Trust
Company as sub-transfer agent. For the year ended November 30, 1996, transfer
agent fees were $18,302 which were all paid to State Street.
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the year ended November 30, 1996
(excluding U.S. Government securities and short-term securities) were $7,086,347
and $6,702,415, respectively.
Purchases and sales of U.S. Government securities during the year ended
November 30, 1996 were $5,688,668 and $5,649,135, respectively.
4. OTHER
As of November 30, 1996, all shares of the Diversified Income Portfolio are
owned by PHL.
5. RECLASS OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, the Portfolio has recorded
several reclassifications in the capital accounts. These reclassifications have
no impact on the net asset value of the Portfolio and are designed generally to
present undistributed income and realized gains on a tax basis which is
considered to be more informative to the shareholder. As of November 30, 1996,
the Portfolio has increased undistributed net investment income by $2,845, and
decreased accumulated net realized gains by $2,845.
6. CAPITAL LOSS CARRYOVERS
For the year ended November 30, 1996, the Portfolio was able to utilize
losses deferred in the prior year against current year capital gains in the
amount of $166,897.
7. PRIVATE PLACEMENTS
At November 30, 1996, the Portfolio held the following security which was a
private placement and represented 2.1% (at market value) of the net assets of
the Portfolio:
Security Acquisition Date Cost
Banco Nacional de Mexico, 7.57%, `00 11/18/96 $124,995
The Portfolio will bear any costs, including those involved in registration
under the Securities Act of 1933, in connection with the disposition of such
securities.
This report is not authorized for distribution to prospective investors in the
Phoenix Diversified Income Portfolio unless preceded or accompanied by an
effective prospectus which includes information concerning the sales charge, the
Fund's record and other pertinent information.
11
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[LOGOTYPE] Price Waterhouse LLP
To the Trustees and Shareholders of
Phoenix Diversified Income Portfolio
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments (except for bond ratings), and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Phoenix Diversified Income Portfolio (the "Fund") at November 30, 1996, and the
results of its operations, the changes in its net assets and the financial
highlights for each of the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at November 30, 1996 by
correspondence with the custodian and brokers, and the application of
alternative procedures where confirmations from brokers were not received,
provide a reasonable basis for the opinion expressed above.
Boston, Massachusetts
January 15, 1997
12
<PAGE>
PHOENIX DIVERSIFIED INCOME PORTFOLIO
101 Munson Street
Greenfield, MA 01301
<TABLE>
<S> <C>
Trustees Principal Underwriter
C. Duane Blinn Phoenix Equity Planning Corporation
Robert Chesek 100 Bright Meadow Boulevard
E. Virgil Conway P. O. Box 2200
Harry Dalzell-Payne Enfield, CT 06083-2200
Francis E. Jeffries
Leroy Keith, Jr. Custodian
Philip R. McLoughlin State Street Bank and Trust Company
Everett L. Morris P. O. Box 351
James M. Oates Boston, MA 02101
Calvin J. Pedersen
Philip R. Reynolds Transfer Agent
Herbert Roth, Jr. Phoenix Equity Planning Corporation
Richard E. Segerson 100 Bright Meadow Boulevard
Lowell P. Weicker, Jr. P. O. Box 2200
Enfield, CT 06083-2200
Officers
Philip R. McLoughlin, President Legal Counsel
Michael E. Haylon, Executive Vice President Jorden, Burt, Berenson & Johnson LLP
David R. Pepin, Executive Vice President Suite 400 East
William J. Newman, Senior Vice President 1025 Thomas Jefferson Street, N.W.
David L. Albrycht, Vice President Washington, D.C. 20007-0805
Curtiss O. Barrows, Vice President
Matthew Considine, Vice President Independent Accountants
Jeanne H. Dorey, Vice President Price Waterhouse LLP
Timothy M. Heaney, Vice President 160 Federal Street
William E. Keen III, Vice President Boston, MA 02110
Peter S. Lannigan, Vice President
David Lui, Vice President
Thomas S. Melvin, Jr., Vice President
William R. Moyer, Vice President
Scott C. Noble, Vice President
Barbara Rubin, Vice President
Leonard J. Saltiel, Vice President
James D. Wehr, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Investment Adviser
Phoenix Investment Counsel, Inc.
56 Prospect Street
Hartford, CT 06115-0480
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 011
<NAME> TAX-EXEMPT BOND PORTFOLIO CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 132756
<INVESTMENTS-AT-VALUE> 138951
<RECEIVABLES> 2680
<ASSETS-OTHER> 47
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 141678
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 358
<TOTAL-LIABILITIES> 358
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 133393
<SHARES-COMMON-STOCK> 12111
<SHARES-COMMON-PRIOR> 12969
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (118)
<ACCUMULATED-NET-GAINS> 1867
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6178
<NET-ASSETS> 141320
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 9145
<OTHER-INCOME> 0
<EXPENSES-NET> (1389)
<NET-INVESTMENT-INCOME> 7756
<REALIZED-GAINS-CURRENT> 1670
<APPREC-INCREASE-CURRENT> (3275)
<NET-CHANGE-FROM-OPS> 6151
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 7504
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7600
<NUMBER-OF-SHARES-REDEEMED> (8830)
<SHARES-REINVESTED> 372
<NET-CHANGE-IN-ASSETS> (11263)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 109
<OVERDISTRIB-NII-PRIOR> (131)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 647
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1389
<AVERAGE-NET-ASSETS> 143775
<PER-SHARE-NAV-BEGIN> 11.40
<PER-SHARE-NII> 0.60
<PER-SHARE-GAIN-APPREC> (0.12)
<PER-SHARE-DIVIDEND> (0.60)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.28
<EXPENSE-RATIO> 0.94
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 012
<NAME> TAX-EXEMPT BOND PORTFOLIO CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 132756
<INVESTMENTS-AT-VALUE> 138951
<RECEIVABLES> 2680
<ASSETS-OTHER> 47
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 141678
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 358
<TOTAL-LIABILITIES> 358
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 133393
<SHARES-COMMON-STOCK> 421
<SHARES-COMMON-PRIOR> 275
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (118)
<ACCUMULATED-NET-GAINS> 1867
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6178
<NET-ASSETS> 141320
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 9145
<OTHER-INCOME> 0
<EXPENSES-NET> (1389)
<NET-INVESTMENT-INCOME> 7756
<REALIZED-GAINS-CURRENT> 1670
<APPREC-INCREASE-CURRENT> (3275)
<NET-CHANGE-FROM-OPS> 6151
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 192
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 198
<NUMBER-OF-SHARES-REDEEMED> (62)
<SHARES-REINVESTED> 10
<NET-CHANGE-IN-ASSETS> 1620
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 109
<OVERDISTRIB-NII-PRIOR> (131)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 647
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1389
<AVERAGE-NET-ASSETS> 143775
<PER-SHARE-NAV-BEGIN> 11.44
<PER-SHARE-NII> 0.52
<PER-SHARE-GAIN-APPREC> (0.12)
<PER-SHARE-DIVIDEND> (0.52)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.32
<EXPENSE-RATIO> 1.69
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 021
<NAME> MID CAP PORTFOLIO CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1996
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 418845
<INVESTMENTS-AT-VALUE> 482500
<RECEIVABLES> 5725
<ASSETS-OTHER> 2
<OTHER-ITEMS-ASSETS> 29425
<TOTAL-ASSETS> 517652
<PAYABLE-FOR-SECURITIES> 17779
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 30801
<TOTAL-LIABILITIES> 48580
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 352535
<SHARES-COMMON-STOCK> 20849
<SHARES-COMMON-PRIOR> 22136
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 52882
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 63655
<NET-ASSETS> 469072
<DIVIDEND-INCOME> 2146
<INTEREST-INCOME> 3510
<OTHER-INCOME> 0
<EXPENSES-NET> (6571)
<NET-INVESTMENT-INCOME> (915)
<REALIZED-GAINS-CURRENT> 53976
<APPREC-INCREASE-CURRENT> 7327
<NET-CHANGE-FROM-OPS> 60388
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 63371
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4975
<NUMBER-OF-SHARES-REDEEMED> (9466)
<SHARES-REINVESTED> 3204
<NET-CHANGE-IN-ASSETS> (36200)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 64681
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3580
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6571
<AVERAGE-NET-ASSETS> 477288
<PER-SHARE-NAV-BEGIN> 22.03
<PER-SHARE-NII> (0.03)
<PER-SHARE-GAIN-APPREC> 2.53
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (2.88)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 21.65
<EXPENSE-RATIO> 1.35
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 022
<NAME> MID CAP PORTFOLIO CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 418845
<INVESTMENTS-AT-VALUE> 482500
<RECEIVABLES> 5725
<ASSETS-OTHER> 2
<OTHER-ITEMS-ASSETS> 29425
<TOTAL-ASSETS> 517652
<PAYABLE-FOR-SECURITIES> 17779
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 30801
<TOTAL-LIABILITIES> 48580
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 352535
<SHARES-COMMON-STOCK> 826
<SHARES-COMMON-PRIOR> 499
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 52882
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 63655
<NET-ASSETS> 469072
<DIVIDEND-INCOME> 2146
<INTEREST-INCOME> 3510
<OTHER-INCOME> 0
<EXPENSES-NET> (6571)
<NET-INVESTMENT-INCOME> (915)
<REALIZED-GAINS-CURRENT> 53976
<APPREC-INCREASE-CURRENT> 7327
<NET-CHANGE-FROM-OPS> 60388
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 1486
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 391
<NUMBER-OF-SHARES-REDEEMED> (139)
<SHARES-REINVESTED> 75
<NET-CHANGE-IN-ASSETS> 6691
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 64681
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3580
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6571
<AVERAGE-NET-ASSETS> 477288
<PER-SHARE-NAV-BEGIN> 21.85
<PER-SHARE-NII> (0.18)
<PER-SHARE-GAIN-APPREC> 2.51
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (2.88)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 21.30
<EXPENSE-RATIO> 2.11
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 031
<NAME> INTERNATIONAL PORTFOLIO CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 118826
<INVESTMENTS-AT-VALUE> 138010
<RECEIVABLES> 6620
<ASSETS-OTHER> 557
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 145187
<PAYABLE-FOR-SECURITIES> 2283
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 425
<TOTAL-LIABILITIES> 2708
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 108024
<SHARES-COMMON-STOCK> 9362
<SHARES-COMMON-PRIOR> 10605
<ACCUMULATED-NII-CURRENT> 2213
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 12614
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 19628
<NET-ASSETS> 142479
<DIVIDEND-INCOME> 2044
<INTEREST-INCOME> 665
<OTHER-INCOME> 0
<EXPENSES-NET> (2279)
<NET-INVESTMENT-INCOME> 430
<REALIZED-GAINS-CURRENT> 14699
<APPREC-INCREASE-CURRENT> 9724
<NET-CHANGE-FROM-OPS> 24853
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 366
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11106
<NUMBER-OF-SHARES-REDEEMED> (12376)
<SHARES-REINVESTED> 27
<NET-CHANGE-IN-ASSETS> 6172
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 369
<OVERDISTRIB-NII-PRIOR> (296)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1072
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2279
<AVERAGE-NET-ASSETS> 142876
<PER-SHARE-NAV-BEGIN> 12.20
<PER-SHARE-NII> 0.04
<PER-SHARE-GAIN-APPREC> 2.28
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (0.04)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.48
<EXPENSE-RATIO> 1.57
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 032
<NAME> INTERNATIONAL PORTFOLIO CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 118826
<INVESTMENTS-AT-VALUE> 138010
<RECEIVABLES> 6620
<ASSETS-OTHER> 557
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 145187
<PAYABLE-FOR-SECURITIES> 2283
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 425
<TOTAL-LIABILITIES> 2708
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 108024
<SHARES-COMMON-STOCK> 489
<SHARES-COMMON-PRIOR> 270
<ACCUMULATED-NII-CURRENT> 2213
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 12614
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 19628
<NET-ASSETS> 142479
<DIVIDEND-INCOME> 2044
<INTEREST-INCOME> 665
<OTHER-INCOME> 0
<EXPENSES-NET> (2279)
<NET-INVESTMENT-INCOME> 430
<REALIZED-GAINS-CURRENT> 14699
<APPREC-INCREASE-CURRENT> 9724
<NET-CHANGE-FROM-OPS> 24853
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 9
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 357
<NUMBER-OF-SHARES-REDEEMED> (139)
<SHARES-REINVESTED> 1
<NET-CHANGE-IN-ASSETS> 3694
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 369
<OVERDISTRIB-NII-PRIOR> (296)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1072
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2279
<AVERAGE-NET-ASSETS> 142876
<PER-SHARE-NAV-BEGIN> 12.07
<PER-SHARE-NII> (0.05)
<PER-SHARE-GAIN-APPREC> 2.24
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (0.04)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 14.22
<EXPENSE-RATIO> 2.31
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 061
<NAME> REAL ESTATE SECURITIES PORTFOLIO CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 26820
<INVESTMENTS-AT-VALUE> 31349
<RECEIVABLES> 489
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 31838
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 708
<TOTAL-LIABILITIES> 708
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 25810
<SHARES-COMMON-STOCK> 1741
<SHARES-COMMON-PRIOR> 1292
<ACCUMULATED-NII-CURRENT> 193
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 598
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4529
<NET-ASSETS> 31130
<DIVIDEND-INCOME> 1305
<INTEREST-INCOME> 13
<OTHER-INCOME> 0
<EXPENSES-NET> (324)
<NET-INVESTMENT-INCOME> 994
<REALIZED-GAINS-CURRENT> 605
<APPREC-INCREASE-CURRENT> 4234
<NET-CHANGE-FROM-OPS> 5833
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 861
<DISTRIBUTIONS-OF-GAINS> 22
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 604
<NUMBER-OF-SHARES-REDEEMED> (228)
<SHARES-REINVESTED> 73
<NET-CHANGE-IN-ASSETS> 9030
<ACCUMULATED-NII-PRIOR> 211
<ACCUMULATED-GAINS-PRIOR> 20
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 168
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 455
<AVERAGE-NET-ASSETS> 22424
<PER-SHARE-NAV-BEGIN> 10.72
<PER-SHARE-NII> 0.53
<PER-SHARE-GAIN-APPREC> 2.50
<PER-SHARE-DIVIDEND> (0.59)
<PER-SHARE-DISTRIBUTIONS> (0.02)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 13.14
<EXPENSE-RATIO> 1.30
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 062
<NAME> REAL ESTATE PORTFOLIO SECURITIES CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1996
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 26820
<INVESTMENTS-AT-VALUE> 31349
<RECEIVABLES> 489
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 31838
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 708
<TOTAL-LIABILITIES> 708
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 25810
<SHARES-COMMON-STOCK> 630
<SHARES-COMMON-PRIOR> 210
<ACCUMULATED-NII-CURRENT> 193
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 598
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4529
<NET-ASSETS> 31130
<DIVIDEND-INCOME> 1305
<INTEREST-INCOME> 13
<OTHER-INCOME> 0
<EXPENSES-NET> (324)
<NET-INVESTMENT-INCOME> 994
<REALIZED-GAINS-CURRENT> 605
<APPREC-INCREASE-CURRENT> 4234
<NET-CHANGE-FROM-OPS> 5833
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 163
<DISTRIBUTIONS-OF-GAINS> 4
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 436
<NUMBER-OF-SHARES-REDEEMED> (28)
<SHARES-REINVESTED> 12
<NET-CHANGE-IN-ASSETS> 6020
<ACCUMULATED-NII-PRIOR> 211
<ACCUMULATED-GAINS-PRIOR> 20
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 168
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 455
<AVERAGE-NET-ASSETS> 22424
<PER-SHARE-NAV-BEGIN> 10.68
<PER-SHARE-NII> 0.46
<PER-SHARE-GAIN-APPREC> 2.47
<PER-SHARE-DIVIDEND> (0.49)
<PER-SHARE-DISTRIBUTIONS> (0.02)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 13.10
<EXPENSE-RATIO> 2.05
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 071
<NAME> EMERGING MARKETS BOND PORTFOLIO CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 39600
<INVESTMENTS-AT-VALUE> 42118
<RECEIVABLES> 11611
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 53729
<PAYABLE-FOR-SECURITIES> 11381
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2974
<TOTAL-LIABILITIES> 14355
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 30333
<SHARES-COMMON-STOCK> 2005
<SHARES-COMMON-PRIOR> 1193
<ACCUMULATED-NII-CURRENT> 161
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6362
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2518
<NET-ASSETS> 39374
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2830
<OTHER-INCOME> 0
<EXPENSES-NET> (394)
<NET-INVESTMENT-INCOME> 2436
<REALIZED-GAINS-CURRENT> 6345
<APPREC-INCREASE-CURRENT> 2233
<NET-CHANGE-FROM-OPS> 11014
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1792
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 923
<NUMBER-OF-SHARES-REDEEMED> (244)
<SHARES-REINVESTED> 132
<NET-CHANGE-IN-ASSETS> 17512
<ACCUMULATED-NII-PRIOR> 6
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (52)
<GROSS-ADVISORY-FEES> 178
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 518
<AVERAGE-NET-ASSETS> 23705
<PER-SHARE-NAV-BEGIN> 10.18
<PER-SHARE-NII> 1.26
<PER-SHARE-GAIN-APPREC> 4.56
<PER-SHARE-DIVIDEND> (1.20)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 14.80
<EXPENSE-RATIO> 1.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 072
<NAME> EMERGING MARKETS BOND PORTFOLIO CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 39600
<INVESTMENTS-AT-VALUE> 42118
<RECEIVABLES> 11611
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 53729
<PAYABLE-FOR-SECURITIES> 11381
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2974
<TOTAL-LIABILITIES> 14355
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 30333
<SHARES-COMMON-STOCK> 657
<SHARES-COMMON-PRIOR> 59
<ACCUMULATED-NII-CURRENT> 161
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6362
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2518
<NET-ASSETS> 39374
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2830
<OTHER-INCOME> 0
<EXPENSES-NET> (394)
<NET-INVESTMENT-INCOME> 2436
<REALIZED-GAINS-CURRENT> 6345
<APPREC-INCREASE-CURRENT> 2233
<NET-CHANGE-FROM-OPS> 11014
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 459
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 701
<NUMBER-OF-SHARES-REDEEMED> (119)
<SHARES-REINVESTED> 17
<NET-CHANGE-IN-ASSETS> 9117
<ACCUMULATED-NII-PRIOR> 6
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (52)
<GROSS-ADVISORY-FEES> 178
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 518
<AVERAGE-NET-ASSETS> 23705
<PER-SHARE-NAV-BEGIN> 10.18
<PER-SHARE-NII> 1.19
<PER-SHARE-GAIN-APPREC> 4.53
<PER-SHARE-DIVIDEND> (1.12)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.78
<EXPENSE-RATIO> 2.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 04
<NAME> ENDOWMENT EQUITY PORTFOLIO
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 367
<INVESTMENTS-AT-VALUE> 441
<RECEIVABLES> 15
<ASSETS-OTHER> 69
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 525
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 46
<TOTAL-LIABILITIES> 46
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 269
<SHARES-COMMON-STOCK> 36
<SHARES-COMMON-PRIOR> 316
<ACCUMULATED-NII-CURRENT> 2
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 135
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 74
<NET-ASSETS> 480
<DIVIDEND-INCOME> 26
<INTEREST-INCOME> 8
<OTHER-INCOME> 0
<EXPENSES-NET> (21)
<NET-INVESTMENT-INCOME> 13
<REALIZED-GAINS-CURRENT> 794
<APPREC-INCREASE-CURRENT> (375)
<NET-CHANGE-FROM-OPS> 432
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 13
<DISTRIBUTIONS-OF-GAINS> 559
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> (332)
<SHARES-REINVESTED> 51
<NET-CHANGE-IN-ASSETS> (3642)
<ACCUMULATED-NII-PRIOR> 10
<ACCUMULATED-GAINS-PRIOR> 555
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 21
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 124
<AVERAGE-NET-ASSETS> 2781
<PER-SHARE-NAV-BEGIN> 13.03
<PER-SHARE-NII> 0.06
<PER-SHARE-GAIN-APPREC> 2.14
<PER-SHARE-DIVIDEND> (0.04)
<PER-SHARE-DISTRIBUTIONS> (1.77)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 13.42
<EXPENSE-RATIO> 0.77
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 05
<NAME> DIVERSIFIED INCOME PORTFOLIO
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 5965
<INVESTMENTS-AT-VALUE> 6137
<RECEIVABLES> 334
<ASSETS-OTHER> 104
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 6575
<PAYABLE-FOR-SECURITIES> 570
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 38
<TOTAL-LIABILITIES> 608
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5723
<SHARES-COMMON-STOCK> 595
<SHARES-COMMON-PRIOR> 547
<ACCUMULATED-NII-CURRENT> 4
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 68
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 172
<NET-ASSETS> 5967
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 477
<OTHER-INCOME> 0
<EXPENSES-NET> (35)
<NET-INVESTMENT-INCOME> 442
<REALIZED-GAINS-CURRENT> 255
<APPREC-INCREASE-CURRENT> 100
<NET-CHANGE-FROM-OPS> 797
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 452
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> (1)
<SHARES-REINVESTED> 47
<NET-CHANGE-IN-ASSETS> 797
<ACCUMULATED-NII-PRIOR> 10
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (185)
<GROSS-ADVISORY-FEES> 27
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 122
<AVERAGE-NET-ASSETS> 5455
<PER-SHARE-NAV-BEGIN> 9.45
<PER-SHARE-NII> 0.78
<PER-SHARE-GAIN-APPREC> 0.59
<PER-SHARE-DIVIDEND> (0.79)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.03
<EXPENSE-RATIO> 0.65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
