[FRONT COVER]
- --------------------------------------------------------------------------------
May 31, 1997
P H O E N I X
F U N D S
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S E M I A N N U A L R E P O R T
Phoenix
Multi-Portfolio
Fund
- TAX-EXEMPT BOND PORTFOLIO
- MID CAP PORTFOLIO
- INTERNATIONAL PORTFOLIO
- REAL ESTATE SECURITIES PORTFOLIO
- EMERGING MARKETS BOND PORTFOLIO
[LOGOTYPE] PHOENIX
DUFF & PHELPS
<PAGE>
Table of Contents
Page
Phoenix Tax-Exempt Bond Portfolio .......................... 1
Phoenix Mid Cap Portfolio ................................... 8
Phoenix International Portfolio ............................. 14
Phoenix Real Estate Securities Portfolio .................... 22
Phoenix Emerging Markets Bond Portfolio .................... 27
Notes to Financial Statements ................................ 33
<PAGE>
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PHOENIX TAX-EXEMPT BOND PORTFOLIO
- --------------------------------------------------------------------------------
INVESTOR PROFILE
Phoenix Tax-Exempt Bond Portfolio is designed for investors seeking to
maximize tax-exempt yield and after-tax total return.
INVESTMENT ADVISER'S REPORT
For the six months ended May 31, 1997, Phoenix Tax-Exempt Bond Fund Class
A shares returned 1.33% and the Class B shares earned 0.85% compared with 1.69%
for the Lehman Brothers Municipal Bond Index.* All performance figures assume
reinvestment of dividends and exclude the effect of sales charges.
Interest rates on municipal bonds basically started and ended the
reporting period within a range of only 20 basis points. However, rates were
very volatile over the last six months due to mixed economic signals and
uncertainty over possible Fed tightening.
While U.S. Treasury rates have risen slightly over the last six months,
tax-exempt rates have remained virtually unchanged. Two major factors were
responsible for the strong relative performance of the municipal bond market
over this period. First, issuance of municipal bonds has declined somewhat on a
year-to-year basis, primarily due to the increase in tax-exempt financing
rates. Second, demand for tax-exempt income has increased as concern over a
flat tax has, for the most part, disappeared.
We continue to emphasize higher-quality issues, although this focus
limited performance over the last six months, as lower-quality "A" and
"BBB"-rated credit issues outperformed higher-quality bonds. However, we
believe the yield advantage of these lower-rated credits does not compensate
adequately for the associated risk.
We have added industrial revenue bonds issued by Mashantucket Pequot Tribe
and Anheuser-Busch to provide diversification from traditional municipal credit
risk. We are also taking advantage of higher-yielding, investment-grade bonds
issued by independent power producers.
OUTLOOK
We believe the outlook for the municipal bond market and our Portfolio
remains favorable. Increasing investor concern about high valuations in the
equity market may lead to a reallocation into tax-exempt securities. The
combination of low levels of new municipal bond issues and strong demand from
individuals should continue to provide a strong backdrop for the tax-exempt
market.
The Portfolio is currently emphasizing the Mid-Atlantic, the Midwest and
"oil patch" states that represent the best mix of economic and fiscal
improvement.
* The Lehman Brothers Municipal Bond Index is an unmanaged, commonly used
measure of municipal bond market total return performance.
1
<PAGE>
Phoenix Tax-Exempt Bond Portfolio
- --------------------------------------------------------------------------------
INVESTMENTS AT MAY 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- -------- --------------
<S> <C> <C> <C>
MUNICIPAL TAX-EXEMPT BONDS--95.9%
Alaska--0.9%
Valdez Marine Terminal
Revenue 7%, '25 .................. AA $1,125 $ 1,210,579
-------------
Arizona--0.8%
Pima County 6.75%, '15 ............ AAA 540 581,261
Pima County Prerefunded
6.75%, '15 ..................... AAA 460 503,217
-------------
1,084,478
-------------
Arkansas--1.4%
Drew County 7.90%, '11 ............ Aaa(b) 377 404,839
Jacksonville Housing 7.90%, '11 Aaa(b) 553 586,525
Lonoke County Residential
Housing 7.90%, '11 ............... Aaa(b) 568 617,588
Stuttgart Revenue 7.90%, '11 ...... Aaa(b) 266 280,449
-------------
1,889,401
-------------
California--8.5%
California Housing Financing
Agency Mortgage 7.75%, '17 . AA- 260 272,763
Pittsburg Redevelopment Series
A 4.625%, '21 .................. AAA 1,650 1,399,431
Riverside County 8.625%, '16 (d) AAA 4,300 5,589,441
University of California Series C
5.125%, '18 (d) .................. AAA 4,300 3,971,953
-------------
11,233,588
-------------
Colorado--2.0%
Arapahoe County Highway
Revenue 6.90%, '15 ............... Baa(b) 2,500 2,671,250
-------------
Connecticut--2.2%
Mashantucket Pequot Tribe
144A 6.50%, '05 (e) ............ BBB 1,700 1,804,686
Mashantucket Pequot Tribe
144A 6.50%, '06 (e) ............ BBB 1,000 1,060,150
-------------
2,864,836
-------------
Florida--1.3%
Martin County Industrial
Cogeneration 7.875%, '25 ......... BBB- 1,500 1,682,865
-------------
Georgia--3.1%
Cartersville Development
Authority Sewage Facilities
Revenue (Anheuser-Busch)
5.625%, '09 ..................... AA- 2,000 2,058,880
Georgia Electric Authority
Series Z 5.50%, '20 ............ AAA 2,000 1,984,620
-------------
4,043,500
-------------
Illinois--6.4%
Chicago Board of Education 6%, '20 AAA 500 520,890
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- -------- --------------
<S> <C> <C> <C>
Illinois--continued
Chicago O'Hare International
Airport 8.85%, '18 ............... BB $ 875 $ 979,431
Chicago PCR (Peoples Light &
Gas) 7.50%, '15 .................. AA- 1,000 1,077,720
Illinois Development Finance
Authority 7.60%, '13 (d) ......... AA 2,000 2,174,460
Illinois Health Facilities
Authority 7%, '08 ............... AAA 1,100 1,250,084
Illinois Housing Development
Authority Residual 7%, '17 ...... A+ 745 762,843
Metro Pier & Exposition 0%,
'07 (c) ........................ Aaa(b) 30 32,433
Metro Pier & Exposition
Prerefunded 0%, '07 (c) ......... Aaa(b) 1,470 1,616,780
-------------
8,414,641
-------------
Indiana--2.3%
Indianapolis Public
Improvement 0%, '03 ............ A(b) 2,500 1,882,825
Indianapolis Public
Improvement 0%, '05 ............ Aaa(b) 1,765 1,172,278
-------------
3,055,103
-------------
Kentucky--2.8%
Greater Kentucky Housing
Assistance 7.125%, '24 ......... AA- 1,000 1,052,250
Kentucky Turnpike Authority
0%, '10 ........................ AAA 3,300 1,657,755
Perry County Solid Waste
Disposal Revenue 7%, '24 ......... NR 1,000 1,056,240
-------------
3,766,245
-------------
Louisiana--0.9%
East Baton Rouge Parish Series
ST-A 4.90%, '16 .................. AAA 1,000 901,120
St. Mary Public Authority
7.625%, '12 ..................... Aaa(b) 128 137,428
St. Tammany Public Authority
7%, '02 ........................ Aaa(b) 148 152,400
-------------
1,190,948
-------------
Maryland--0.4%
Baltimore G.O. 7%, '09 ............ AAA 500 583,030
-------------
Massachusetts--6.7%
Massachusetts Bay
Transportation Authority
5.80%, '11 ..................... A+ 2,000 2,101,540
Massachusetts Bay
Transportation Authority
Series B 6.20%, '16 ............ A+ 1,000 1,090,960
</TABLE>
See Notes to Financial Statements
2
<PAGE>
Phoenix Tax-Exempt Bond Portfolio
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<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- -------- -------------
<S> <C> <C> <C>
Massachusetts--continued
Massachusetts Industrial
Financing Agency 0%, '05 ...... A $1,100 $ 710,820
Massachusetts State Health
& Education Revenue
3.10%, '13 (c) ............... AAA 6,000 5,035,020
-------------
8,938,340
-------------
Michigan--1.2%
Western Townships Sewage
Authority 8.20%, '18 ......... BBB+ 1,500 1,600,665
-------------
Mississippi--1.2%
Lowndes County Waste Disposal
6.80%, '22 ..................... A 1,450 1,656,698
-------------
Nebraska--1.2%
Nebraska Higher Education
6.70%, '02 ..................... A(b) 1,500 1,574,760
-------------
Nevada--1.1%
Clark County School District
Series A 0%, '03 ............... AAA 2,000 1,501,840
-------------
New Jersey--1.8%
Atlantic City Improvement
Authority 8.875%, '10 ......... NR 1,000 1,073,540
Camden County Municipal
Utility 0%, '11 ............... AAA 3,000 1,317,780
-------------
2,391,320
-------------
New York--12.1%
Erie County Water Authority
0%, '17 ........................ AAA 550 126,550
New York City University
Dormitory 6.375%, '08 ......... BBB 1,000 1,053,550
New York State Medical Care
Facility Agency Revenue
5.375%, '25 ..................... AAA 3,000 2,844,990
Niagara Falls 5.25%, '15 ......... AAA 4,000 3,902,680
Port Authority Revenue 6.75%,
'11 ........................... NR 3,000 3,158,700
Port Authority Revenue 6.125%,
'94 ........................... AA- 2,000 2,099,680
Triborough Bridge & Tunnel
6.625%, '12 .................. A+ 750 848,220
Triborough Bridge & Tunnel
4.75%, '14 ..................... A+ 2,250 2,062,800
-------------
16,097,170
-------------
North Carolina--1.1%
North Carolina Municipal Power
6%, '09 ........................ AAA 1,385 1,476,161
-------------
Pennsylvania--14.7%
Pennsylvania Economic
Development 6.75%, '07 ......... NR 3,000 3,075,240
Pennsylvania Economic
Development 9.25%, '22 ......... NR 6,000 5,120,340
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- -------- -------------
<S> <C> <C> <C>
Pennsylvania--continued
Pennsylvania Economic
Development Series D 7.05%,
'10 ........................... BBB- $2,000 $ 2,108,240
Pennsylvania Finance Authority
6.60%, '09 ..................... A 4,000 4,273,880
Pennsylvania Financial
Development 6.40%, '09 ......... NR 5,000 4,962,950
-------------
19,540,650
-------------
Tennessee--1.2%
Met. Gov't Tennessee Health &
Educational Facilities Board
6%, '16 ........................ AAA 1,500 1,576,050
-------------
Texas--9.3%
Alliance Airport Authority 7%,
'11 ........................... BB+ 1,100 1,219,713
Austin Convention Center
8.25%, '14 ..................... Aaa(b) 980 1,085,899
Brazos River Authority 7.75%,
'15 ........................... A- 750 792,877
Brazos River Authority 7.625%,
'19 ........................... A- 1,000 1,072,820
Colorado River Water District
8.25%, '15 ..................... NR 540 605,583
Harris County Toll Road
Multimode 8.125%, '17 ......... AAA 700 740,621
La Vernia School District 5%,
'22 ........................... AAA 1,125 1,018,845
San Antonio Texas Electric &
Gas 5%, '12 .................. AA 2,000 1,934,740
Texas State Technical College
6.25%, '09 ..................... AAA 1,250 1,370,250
Texas Turnpike Authority 5%,
'25 ........................... AAA 1,500 1,370,415
Texas Water Resources Finance
Agency 7.625%, '08 ............ A 995 1,054,979
-------------
12,266,742
-------------
Virginia--4.6%
Pittsylvania County Revenue
Series A 7.30%, '04 ............ NR 1,000 1,037,510
Pittsylvania County Revenue
Series A 7.45%, '09 ............ NR 3,000 3,149,400
Upper Occoquan Sewer
Authority 5.15%, '20 ......... AAA 2,000 1,901,500
-------------
6,088,410
-------------
Washington--1.3%
Walla Walla Waste Recycling
Revenue 9.125%, '26 ............ NR 2,000 1,754,900
-------------
West Virginia--2.4%
Upshur Solid Waste Revenue
7%, '25 ........................ NR 2,000 2,122,980
</TABLE>
See Notes to Financial Statements
3
<PAGE>
Phoenix Tax-Exempt Bond Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- -------- -------------
<S> <C> <C> <C>
West Virginia--continued
West Virginia Housing
Development Fund 6.625%,
'20 ..................... AA $1,000 $ 1,001,720
-------------
3,124,700
-------------
Wisconsin--0.9%
Wisconsin Clean Water Revenue
6.875%, '11 ............ AA 750 856,567
Wisconsin Housing &
Development Authority
7.375%, '17 ............ A+ 320 328,957
-------------
1,185,524
-------------
Wyoming--0.5%
Wyoming Community
Development Authority
7.875%, '18 ............ AA 585 605,627
-------------
Other Territories--1.6%
Puerto Rico Commonwealth
Aqueduct & Sewer 7.875%,
'17 ..................... AAA 500 530,130
Puerto Rico Commonwealth
Highway Revenue Series V
6.625%, '12 ............ A 1,500 1,611,045
-------------
2,141,175
-------------
TOTAL MUNICIPAL TAX-EXEMPT BONDS
(Identified cost $123,373,855) .................. 127,211,196
-------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- -------- ---------------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--2.4%
Commercial Paper--2.4%
Merrill Lynch & Company, Inc.
5.68%, 6-2-97 ............ A-1+ $3,100 $ 3,099,511
AlliedSignal, Inc. 5.65%,
6-9-97 .................. A-1 85 84,893
-----------------
3,184,404
-----------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $3,184,404) 3,184,404
-----------------
TOTAL INVESTMENTS--98.3%
(Identified cost $126,558,259) 130,395,600(a)
Cash and receivables, less liabilities--1.7% 2,297,955
-----------------
NET ASSETS--100.0% ........................... $ 132,693,555
=================
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $6,766,559 and gross
depreciation of $2,877,491 for income tax purposes. At May 31, 1997, the
aggregate cost of securities for federal income tax purposes was
$126,506,532.
(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) Partially 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 May 31, 1997,
these securities amount to a value of $2,864,836 or 2.2% of net assets.
4 See Notes to Financial Statements
<PAGE>
Phoenix Tax-Exempt Bond Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $126,558,259) $130,395,600
Cash 102,832
Receivables
Interest 2,431,241
Fund shares sold 64,024
Variation margin for futures contracts 10,312
-------------
Total assets 133,004,009
-------------
Liabilities
Payables
Dividend distributions 128,918
Fund shares repurchased 10,741
Investment advisory fee 50,018
Distribution fee 30,952
Transfer agent fee 27,932
Trustees' fee 7,272
Financial agent fee 6,964
Accrued expenses 47,657
-------------
Total liabilities 310,454
-------------
Net Assets $132,693,555
=============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $128,709,181
Undistributed net investment loss (139,187)
Accumulated net realized gain 269,658
Net unrealized appreciation 3,853,903
-------------
Net Assets $132,693,555
=============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $127,675,086) 11,650,864
Net asset value per share $10.96
Offering price per share
$10.96/(1-4.75%) $11.51
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $5,018,469) 456,289
Net asset value and offering price per share $11.00
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Investment Income
Interest $ 4,259,132
------------
Total investment income 4,259,132
------------
Expenses
Investment advisory fee 298,102
Distribution fee--Class A 159,588
Distribution fee--Class B 24,096
Financial agent fee 37,437
Transfer agent 70,659
Professional 21,820
Registration 12,894
Trustees 12,726
Printing 9,860
Custodian 7,772
Miscellaneous 11,512
------------
Total expenses 666,466
------------
Net investment income 3,592,666
------------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 305,282
Net realized loss on futures contracts (14,751)
Net change in unrealized appreciation (depreciation) on
investments (2,323,591)
------------
Net loss on investments (2,033,060)
------------
Net increase in net assets resulting from
operations $ 1,559,606
============
</TABLE>
See Notes to Financial Statements
5
<PAGE>
Phoenix Tax-Exempt Bond Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
May 31, 1997 Year Ended
(Unaudited) November 30, 1996
--------------- ------------------
<S> <C> <C>
From Operations
Net investment income $ 3,592,666 $ 7,756,296
Net realized gain 290,531 1,670,133
Net change in unrealized appreciation (depreciation) (2,323,591) (3,275,493)
------------- -------------
Increase in net assets resulting from operations 1,559,606 6,150,936
------------- -------------
From Distributions to Shareholders
Net investment income--Class A (3,500,013) (7,504,351)
Net investment income--Class B (114,235) (191,960)
Net realized gains--Class A (1,824,638) --
Net realized gains--Class B (63,375) --
------------- -------------
Decrease in net assets from distributions to shareholders (5,502,261) (7,696,311)
------------- -------------
From Share Transactions
Class A
Proceeds from sales of shares (2,996,205 and 7,599,558 shares, respectively) 32,889,392 84,574,148
Net asset value of shares issued from reinvestment of distributions (295,826 and
371,771 shares, respectively) 3,243,018 4,153,807
Cost of shares repurchased (3,751,688 and 8,830,124 shares, respectively) (41,210,873) (98,463,997)
------------- -------------
Total (5,078,463) (9,736,042)
------------- -------------
Class B
Proceeds from sales of shares (96,714 and 197,502 shares, respectively) 1,062,501 2,219,054
Net asset value of shares issued from reinvestment of distributions (9,956 and
10,179 shares, respectively) 109,534 113,899
Cost of shares repurchased (71,120 and 61,609 shares, respectively) (777,002) (695,116)
------------- -------------
Total 395,033 1,637,837
------------- -------------
Decrease in net assets from share transactions (4,683,430) (8,098,205)
------------- -------------
Net decrease in net assets (8,626,085) (9,643,580)
Net Assets
Beginning of period 141,319,640 150,963,220
------------- -------------
End of period (including undistributed net investment loss and
distributions in excess of net investment income of ($139,187) and
($117,605), respectively) $132,693,555 $ 141,319,640
============= =============
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Phoenix Tax-Exempt Bond Portfolio
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-------------------------------------------------------------------------------------
Six Months
Ended
5/31/97 Year Ended November 30,
(Unaudited) 1996 1995 1994 1993 1992
---------------- ----------- ----------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.28 $ 11.40 $ 10.09 $ 11.58 $ 11.10 $ 10.66
Income from investment operations
Net investment income 0.30 0.60 0.61 0.65 0.60(4) 0.66(4)
Net realized and unrealized gain (loss) (0.17) (0.12) 1.34 (1.49) 0.76 0.57
--------- --------- --------- ----------- ---------- ---------
Total from investment operations 0.13 0.48 1.95 (0.84) 1.36 1.23
--------- --------- --------- ----------- ---------- ---------
Less distributions
Dividends from net investment income (0.30) (0.60) (0.61) (0.65) (0.60) (0.66)
Dividends from net realized gains (0.15) -- (0.03) -- (0.28) (0.13)
--------- --------- --------- ----------- ---------- ---------
Total distributions (0.45) (0.60) (0.64) (0.65) (0.88) (0.79)
--------- --------- --------- ----------- ---------- ---------
Change in net asset value (0.32) (0.12) 1.31 (1.49) 0.48 0.44
--------- --------- --------- ----------- ---------- ---------
Net asset value, end of period $ 10.96 $ 11.28 $ 11.40 $ 10.09 $ 11.58 $ 11.10
========= ========= ========= =========== ========== =========
Total return(1) 1.33%(3) 4.30% 19.87% (7.55)% 12.79% 11.92%
Ratios/supplemental data:
Net assets, end of period (thousands) $ 127,675 $ 136,558 $ 147,821 $ 141,623 $ 171,272 $ 35,625
Ratio to average net assets of:
Operating expenses 0.98%(2) 0.94% 0.97% 0.96 % 0.75% 0.78%
Net investment income 5.45%(2) 5.42% 5.65% 5.65 % 5.33% 5.92%
Portfolio turnover 5%(3) 27% 25% 54 % 62% 145%
</TABLE>
<TABLE>
<CAPTION>
Class B
-------------------------------------------------------------
Six Months From
Ended Inception
5/31/97 Year Ended November 30, 3/16/94 to
(Unaudited) 1996 1995 11/30/94
---------------- ----------- ----------- ------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.32 $ 11.44 $ 10.12 $ 11.21
Income from investment operations
Net investment income 0.26 0.52 0.53 0.39
Net realized and unrealized gain (loss) (0.17) (0.12) 1.35 (1.09)
--------- --------- --------- ----------
Total from investment operations 0.09 0.40 1.88 (0.70)
--------- --------- --------- ----------
Less distributions
Dividends from net investment income (0.26) (0.52) (0.53) (0.39)
Dividends from net realized gains (0.15) -- (0.03) --
--------- --------- --------- ----------
Total distributions (0.41) (0.52) (0.56) (0.39)
--------- --------- --------- ----------
Change in net asset value (0.32) (0.12) 1.32 (1.09)
--------- --------- --------- ----------
Net asset value, end of period $ 11.00 $ 11.32 $ 11.44 $ 10.12
========= ========= ========= ==========
Total return(1) 0.85%(3) 3.60% 19.07% (6.42)%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $ 5,018 $ 4,762 $ 3,142 $ 1,147
Ratio to average net assets of:
Operating expenses 1.73%(2) 1.69% 1.72% 1.54 %(2)
Net investment income 4.70%(2) 4.68% 4.90% 5.07 %(2)
Portfolio turnover 5%(3) 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
7
<PAGE>
- --------------------------------------------------------------------------------
PHOENIX MID CAP PORTFOLIO
- --------------------------------------------------------------------------------
INVESTOR PROFILE
Phoenix Mid Cap Portfolio is designed for long-term investors seeking
above-average capital appreciation, primarily through investments in
mid-capitalization stocks.
INVESTMENT ADVISER'S REPORT
For the six months ended May 31, 1997, the Fund's Class A shares returned
- -0.41% and Class B shares -0.78% compared with 10.03% for the S&P MidCap 400
Index.* All performance figures assume reinvestment of dividends and exclude
the effect of sales charges.
Stock market performance has been dominated lately by large-cap stocks,
limiting performance of the mid-cap sector. As the economy remained strong,
investors focused on the likelihood of interest rate increases by the Fed to
control anticipated inflation. This resulted in a shift to conservative,
high-quality stocks, particularly as cash continued to flow into equity mutual
funds at record levels.
As valuation levels in the technology sector rose, we reduced the
Portfolio weighting, trimming a number of stocks in the Deregulating Financials
and Energy Technology themes, which had performed well. However, basic
materials holdings, as well as some consumer staples stocks, did not contribute
as greatly to performance as some other sectors did. The financial and
health-care sectors were positive contributors during most of the reporting
period.
As large-cap stocks have continued to outperform, we are positioning the
Portfolio to emphasize companies with more earnings visibility. We have shifted
the Portfolio's weighting from the Retail Revival theme to 21st Century
Medicine. We believe that stocks represented in these themes should continue to
experience above-average earnings growth, attracting increased investor
attention.
OUTLOOK
We believe the performance disparity between large-cap and mid-cap stocks
will close as investors realize that mid-caps offer comparatively higher growth
rates yet also attractive liquidity profiles. Our key investment themes --
Deregulating Financials and Energy Technology -- should perform well in this
environment. However, if the economy slows, we may increase our defensive
holdings in such sectors as consumer staples or utilities.
* The S&P MidCap 400 Index is an unmanaged, commonly used measure of mid-cap
stock total return performance.
8
<PAGE>
Phoenix Mid Cap Portfolio
- --------------------------------------------------------------------------------
INVESTMENTS AT MAY 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C>
COMMON STOCKS--93.1%
Advertising--0.9%
Outdoor Systems, Inc. (b) ..................... 100,000 $ 3,312,500
------------
Auto & Truck Parts--0.3%
Gentex Corp. (b) .............................. 50,000 1,006,250
------------
Banks--5.4%
Ahmanson (H.F.) & Co. ........................ 90,000 3,667,500
Fleet Financial Group, Inc. .................. 80,000 4,890,000
Greenpoint Financial Corp. .................. 90,000 5,445,000
Republic New York Corp. ..................... 70,000 6,982,500
------------
20,985,000
------------
Beverages--1.1%
Coca-Cola Enterprises, Inc. .................. 210,000 4,436,250
------------
Chemical--2.5%
Philip Environmental, Inc. (b) ............... 310,000 4,533,750
W.R. Grace & Co. .............................. 100,000 5,225,000
------------
9,758,750
------------
Computer Software & Services--10.7%
Adobe Systems, Inc. ........................... 275,000 12,271,875
BMC Software, Inc. (b) ........................ 120,000 6,495,000
Compuware Corp. (b) ........................... 100,000 4,637,500
Comverse Technology, Inc. (b) ............... 100,000 4,575,000
HBO & Co. .................................... 50,000 3,206,250
Parametric Technology Corp. (b) ............... 115,000 5,160,625
Peoplesoft, Inc. (b) ........................ 50,000 2,587,500
Wind River Systems (b) ........................ 70,500 2,397,000
------------
41,330,750
------------
Diversified Financial Services--3.5%
Franklin Resources, Inc. ..................... 67,000 4,338,250
T. Rowe Price Associates ..................... 81,000 3,989,250
TCF Financial Corp. ........................... 35,000 1,487,500
United Assets Management Corp. ............... 135,000 3,763,125
------------
13,578,125
------------
Diversified Miscellaneous--0.1%
Meade Instruments Corp. (b) .................. 55,000 378,125
------------
Electrical Equipment--3.3%
General Signal Corp. ........................ 165,000 6,950,625
Grainger (W.W.), Inc. ........................ 75,000 6,018,750
------------
12,969,375
------------
Electronics--6.1%
Altera Corp. (b) .............................. 75,000 3,975,000
Analog Devices, Inc. (b) ..................... 100,000 2,675,000
LSI Logic Corp. (b) ........................... 100,000 4,175,000
Linear Technology Corp. ..................... 80,000 4,010,000
Maxim Integrated Products, Inc. (b) ......... 75,000 4,031,250
Microchip Technology, Inc. (b) ............... 60,000 2,130,000
Xilinx, Inc. (b) .............................. 50,000 2,681,250
------------
23,677,500
------------
Entertainment, Leisure & Gaming--1.1%
Tele-Communications, Inc. (b) .................. 200,000 4,362,500
------------
SHARES VALUE
--------- -------------
<S> <C> <C>
Food--2.4%
Flowers Industries, Inc. ..................... 60,000 $ 1,057,500
Interstate Bakeries Corp. ..................... 150,000 8,062,500
------------
9,120,000
------------
Healthcare--Drugs--2.2%
Genzyme Corp. (b) .............................. 180,000 4,297,500
Vertex Pharmaceuticals, Inc. (b) ............ 100,000 4,050,000
------------
8,347,500
------------
Hospital Management & Services--5.2%
Covance, Inc. (b) ........................... 61,800 1,151,025
Health Management Assocation, Inc.
Class A (b) .............................. 221,000 6,464,250
HEALTHSOUTH Corp. (b) ........................ 310,000 7,091,250
Tenet Healthcare Corp. (b) .................. 200,000 5,500,000
------------
20,206,525
------------
Insurance--6.1%
Jefferson-Pilot Corp. ........................ 90,000 5,726,250
Nationwide Financial Services Class A . 150,000 4,218,750
St. Paul Companies, Inc. ..................... 72,000 5,157,000
SunAmerica, Inc. .............................. 100,000 4,725,000
Travelers Property Casualty Corp. Class A 103,500 3,984,750
------------
23,811,750
------------
Medical Products & Supplies--2.1%
Advanced Technology Laboratories, Inc.
(b) ....................................... 20,000 775,000
KLA-Tencor Corp. (b) ........................ 75,000 3,567,188
Nellcor, Inc. (b) ........................... 100,000 2,137,500
Spine-Tech, Inc. (b) ........................ 50,000 1,728,125
------------
8,207,813
------------
Metals & Mining--2.1%
Phelps Dodge Corp. ........................... 50,000 4,181,250
Reynolds Metals Co. ........................... 60,000 4,072,500
------------
8,253,750
------------
Natural Gas--2.5%
Apache Corp. ................................. 160,000 5,480,000
UtiliCorp United, Inc. ........................ 150,000 4,050,000
------------
9,530,000
------------
Oil Service & Equipment--9.7%
BJ Services Co. (b) ........................... 125,000 6,906,250
Diamond Offshore Drilling, Inc. (b) ......... 50,000 3,556,250
ENSCO International, Inc. (b) ............... 110,000 5,486,250
Reading & Bates Corp. (b) ..................... 120,000 3,045,000
Rowan Companies, Inc. (b) ..................... 150,000 3,468,750
Smith International, Inc. (b) ............... 120,000 6,285,000
Transocean Offshore, Inc. ..................... 130,000 8,970,000
------------
37,717,500
------------
Publishing, Broadcasting, Printing & Cable--1.3%
Heftel Broadcasting Corp. Class A (b) ......... 100,000 4,950,000
------------
Retail--2.0%
Barnes & Noble, Inc. (b) ..................... 100,000 4,162,500
Kohl's Corp. (b) .............................. 65,000 3,501,875
------------
7,664,375
------------
</TABLE>
See Notes to Financial Statements
9
<PAGE>
Phoenix Mid Cap Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C>
Retail--Food--2.3%
American Stores Co. ............... 100,000 $ 4,550,000
Safeway, Inc. (b) .................. 95,000 4,275,000
-------------
8,825,000
-------------
Telecommunications Equipment--8.9%
Ascend Communications, Inc. (b) ... 355,000 19,791,250
Bay Networks, Inc. (b) ............ 220,000 5,390,000
Qualcomm, Inc. (b) .................. 75,000 3,618,750
Teleport Communications Group, Inc.
Class A (b) ..................... 100,000 3,025,000
Tellabs, Inc. (b) .................. 50,000 2,512,500
-------------
34,337,500
-------------
Textiles & Apparel--4.1%
Jones Apparel Group, Inc. (b) ...... 185,000 8,671,875
Liz Claiborne, Inc. ............... 130,000 5,931,250
Pluma, Inc. (b) ..................... 100,000 1,275,000
-------------
15,878,125
-------------
Truckers & Marine--0.6%
Caliber System, Inc. ............... 75,000 2,400,000
-------------
Utility--Electric--6.6%
DPL, Inc. ........................... 120,000 2,865,000
FPL Group, Inc. ..................... 100,000 4,650,000
LG&E Energy Corp. .................. 120,000 2,760,000
New England Electric System ......... 120,000 4,155,000
PacifiCorp ........................ 100,000 1,987,500
Public Service Company of Colorado 120,000 4,845,000
Sierra Pacific Resources ............ 150,000 4,443,750
-------------
25,706,250
-------------
TOTAL COMMON STOCKS
(Identified cost $321,609,943) ............... 360,751,213
-------------
FOREIGN COMMON STOCKS--0.1%
Computer Software & Services--0.1%
CBT Group PLC-Sponsored ADR
(Ireland) (b) .................. 5,000 272,500
-------------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $241,200) ..................... 272,500
-------------
TOTAL LONG-TERM INVESTMENTS--93.2%
(Identified cost $321,851,143) ............... 361,023,713
-------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- -------- ---------------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--5.8%
Commercial Paper--5.1%
Greenwich Funding Corp.
5.55%, 6-4-97 ............ A-1+ $3,510 $ 3,508,376
Enterprise Funding Corp.
5.53%, 6-5-97 ............ A-1+ 1,050 1,049,355
Ameritech Capital Funding
Corp. 5.50%, 6-6-97 ...... A-1+ 4,370 4,366,662
Receivables Capital Corp.
5.58%, 6-16-97 ............ A-1+ 1,275 1,272,035
Preferred Receivables Funding
5.35%, 6-19-97 ............ A-1 2,000 1,994,026
Private Export Funding Corp.
5.50%, 6-19-97 ............ A-1+ 4,215 4,203,409
Campbell Soup 5.55%, 6-20-97 A-1+ 3,370 3,360,129
-----------------
19,753,992
-----------------
Federal Agency Securities--0.7%
Federal Home Loan Mortgage 5.47%, 6-5-97. 2,535 2,533,459
-----------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $22,288,076) 22,287,451
-----------------
TOTAL INVESTMENTS--99.0%
(Identified cost $344,139,219) 383,311,164(a)
Cash and receivables, less liabilities--1.0% ... 3,885,632
-----------------
NET ASSETS--100.0% .............................. $ 387,196,796
=================
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $44,829,009 and gross
depreciation of $5,657,064 for federal income tax purposes. At May 31,
1997, the aggregate cost of securities for federal income tax purposes was
$344,139,219.
(b) Non-income producing.
See Notes to Financial Statements
10
<PAGE>
Phoenix Mid Cap Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $344,139,219) $383,311,164
Short-term investments held as collateral for
loaned securities 8,503,800
Cash 3,619
Receivables
Investment securities sold 9,448,689
Dividends and interest 407,175
Fund shares sold 156,054
-------------
Total assets 401,830,501
-------------
Liabilities
Payables
Investment securities purchased 4,902,943
Collateral on securities loaned 8,503,800
Fund shares repurchased 553,992
Investment advisory fee 242,207
Transfer agent fee 189,009
Distribution fee 90,974
Financial agent fee 14,105
Trustees' fee 7,271
Accrued expenses 129,404
-------------
Total liabilities 14,633,705
-------------
Net Assets $387,196,796
=============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $329,172,682
Undistributed net investment income 419,668
Accumulated net realized gain 18,432,501
Net unrealized appreciation 39,171,945
-------------
Net Assets $387,196,796
=============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $370,612,557) 19,482,881
Net asset value per share $19.02
Offering price per share
$19.02/(1-4.75%) $19.97
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $16,584,239) 891,896
Net asset value and offering price per share $18.59
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Investment Income
Dividends $ 1,599,743
Interest 1,392,644
Security lending 303,155
--------------
Total investment income 3,295,542
--------------
Expenses
Investment advisory fee 1,544,965
Distribution fee--Class A 494,582
Distribution fee--Class B 81,624
Financial agent fee 83,311
Transfer agent 526,380
Printing 51,548
Registration 23,989
Professional 23,955
Custodian 17,949
Trustees 12,753
Miscellaneous 14,818
--------------
Total expenses 2,875,874
--------------
Net investment income 419,668
--------------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 19,364,859
Net change in unrealized appreciation (depreciation) on
investments (24,482,585)
--------------
Net loss on investments (5,117,726)
--------------
Net decrease in net assets resulting from
operations $ (4,698,058)
==============
</TABLE>
See Notes to Financial Statements
11
<PAGE>
Phoenix Mid Cap Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
May 31, 1997 Year Ended
(Unaudited) November 30, 1996
----------------- ------------------
<S> <C> <C>
From Operations
Net investment income (loss) $ 419,668 $ (914,819)
Net realized gain 19,364,859 53,975,757
Net change in unrealized appreciation (depreciation) (24,482,585) 7,327,088
-------------- --------------
Increase (decrease) in net assets resulting from operations (4,698,058) 60,388,026
-------------- --------------
From Distributions to Shareholders
Net realized gains--Class A (51,790,191) (63,370,772)
Net realized gains--Class B (2,024,696) (1,485,800)
-------------- --------------
Decrease in net assets from distributions to shareholders (53,814,887) (64,856,572)
-------------- --------------
From Share Transactions
Class A
Proceeds from sales of shares (1,077,660 and 4,975,113 shares, respectively) 20,641,769 98,337,401
Net asset value of shares issued from reinvestment of distributions (2,614,669 and
3,203,933 shares, respectively) 48,920,462 59,432,948
Cost of shares repurchased (5,058,464 and 9,465,735 shares, respectively) (94,121,887) (189,179,115)
-------------- --------------
Total (24,559,656) (31,408,766)
-------------- --------------
Class B
Proceeds from sales of shares (108,006 and 391,167 shares, respectively) 1,985,085 7,718,870
Net asset value of shares issued from reinvestment of distributions (102,294 and
74,668 shares, respectively) 1,877,087 1,371,654
Cost of shares repurchased (144,804 and 138,583 shares, respectively) (2,665,078) (2,722,739)
-------------- --------------
Total 1,197,094 6,367,785
-------------- --------------
Decrease in net assets from share transactions (23,362,562) (25,040,981)
-------------- --------------
Net decrease in net assets (81,875,507) (29,509,527)
Net Assets
Beginning of period 469,072,303 498,581,830
-------------- --------------
End of period (including undistributed net investment income of
$419,668 and $0, respectively) $ 387,196,796 $ 469,072,303
============== ==============
</TABLE>
See Notes to Financial Statements
12
<PAGE>
Phoenix Mid Cap Portfolio
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
--------------------------------------
Six Months
Ended Year Ended
5/31/97 November 30,
(Unaudited) 1996
------------------ -------------------
<S> <C> <C>
Net asset value, beginning of period $ 21.65 $ 22.03
Income from investment operations(5)
Net investment income (loss) 0.02 (0.03) (1)
Net realized and unrealized gain (loss) (0.15) 2.53
------- -------
Total from investment operations (0.13) 2.50
------- -------
Less distributions
Dividends from net investment income -- --
Dividends from net realized gains (2.50) (2.88)
------- -------
Total distributions (2.50) (2.88)
------- -------
Change in net asset value (2.63) (0.38)
------- -------
Net asset value, end of period $ 19.02 $ 21.65
======= =======
Total return(2) (0.41)%(4) 13.52%
Ratios/supplemental data:
Net assets, end of period (thousands) $370,613 $451,474
Ratio to average net assets of:
Operating expenses 1.37%(3) 1.35 %
Net investment income (loss) 0.23%(3) (0.17)%
Portfolio turnover 95%(4) 242 %
Average commission rate paid(6) $ 0.0556 $ 0.0504
<CAPTION>
Year Ended November 30,
1995 1994 1993 1992
-------------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 18.03 $ 18.70 $ 17.95 $ 16.61
Income from investment operations(5)
Net investment income (loss) 0.05(1) 0.11 0.11 0.15
Net realized and unrealized gain (loss) 4.74 0.10 1.44 2.41
--------- -------- --------- ---------
Total from investment operations 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 (0.73) (0.78) (0.67) (1.01)
--------- -------- --------- ---------
Total distributions (0.79) (0.88) (0.80) (1.22)
--------- -------- --------- ---------
Change in net asset value 4.00 (0.67) 0.75 1.34
--------- -------- --------- ---------
Net asset value, end of period $ 22.03 $ 18.03 $ 18.70 $ 17.95
========= ======== ========= =========
Total return(2) 27.87% 1.03% 8.94% 16.44%
Ratios/supplemental data:
Net assets, end of period (thousands) $487,674 $419,760 $ 426,027 $ 234,472
Ratio to average net assets of:
Operating expenses 1.42% 1.36% 1.34% 1.40%
Net investment income (loss) 0.28% 0.59% 0.64% 0.93%
Portfolio turnover 218% 227% 174% 287%
Average commission rate paid(6) N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
Class B
------------------------------------------------------------------------
Six Months From
Ended Inception
5/31/97 Year Ended November 30, 7/18/94 to
(Unaudited) 1996 1995 11/30/94
-------------- ------------- -------------- ---------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 21.30 $ 21.85 $ 17.97 $ 17.68
Income from investment operations(5)
Net investment income (loss) (0.05) (0.18) (1) (0.12)(1) (0.01)
Net realized and unrealized gain (loss) (0.16) 2.51 4.75 0.30
------- ------- ------- -------
Total from investment operations (0.21) 2.33 4.63 0.29
------- ------- ------- -------
Less distributions
Dividends from net investment income -- -- (0.02) --
Dividends from net realized gains (2.50) (2.88) (0.73) --
------- ------- ------- -------
Total distributions (2.50) (2.88) (0.75) --
------- ------- ------- -------
Change in net asset value (2.71) (0.55) 3.88 0.29
------- ------- ------- -------
Net asset value, end of period $ 18.59 $ 21.30 $ 21.85 $ 17.97
======= ======= ======= =======
Total return(2) (0.78)%(4) 12.75% 26.92% 1.64%(4)
Ratios/supplemental data:
Net assets, end of period (thousands) $16,584 $17,599 $10,908 $ 1,519
Ratio to average net assets of:
Operating expenses 2.12 %(3) 2.11 % 2.18% 2.05 %(3)
Net investment income (loss) (0.51)%(3) (0.92)% (0.58)% (0.23)%(3)
Portfolio turnover 95 %(4) 242 % 218 % 227 %
Average commission rate paid(6) $0.0556 $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
13
<PAGE>
- --------------------------------------------------------------------------------
PHOENIX INTERNATIONAL PORTFOLIO
- --------------------------------------------------------------------------------
INVESTOR PROFILE
Phoenix International Portfolio is designed for long-term investors
seeking above-average capital appreciation. Foreign investment involves special
risks, such as currency fluctuation, less public disclosure and economic and
political risks.
INVESTMENT ADVISER'S REPORT
Class A shares rose 9.11% for the six months ended May 31, 1997 and Class
B shares were up 8.72% compared with a 7.86% return for a peer group of 401
funds according to Lipper Analytical Services, Inc. The Morgan Stanley Capital
International (MSCI) EAFE Index* returned 4.04% for the same period, but when
Japan is excluded, the index gained 9.02%. All performance figures are stated
in U.S. dollars, assume reinvestment of dividends and exclude the effect of
sales charges. MSCI total return figures are net of foreign withholding taxes.
Over the last six months, the European and Latin American markets have
performed strongly, in some cases even outpacing the United States. As measured
by Morgan Stanley Capital International, European markets rose 10.92% in U.S.
dollars (19.88% in local currency), supported by low interest rates. Latin
America rose 33.50% in the last half with every country participating in the
gain. Brazil was particularly strong. Both Mexico and Argentina were helped by
signs of improving economic conditions.
The Pacific Basin experienced more uneven performance. Japan, the largest
market in the region, fell 5.53%. India and Taiwan turned in double-digit
returns of 25.93% and 13.77%, respectively. Hong Kong rose 3.88%, but other
Asian markets continue to struggle.
The Portfolio performed well largely because of its slightly overweighted
position in Europe and good stock selection in those same markets, as well as
its underweighting in Japan. During May, performance was hampered somewhat by
this underweighting. Japan returned 11.04% for the month, and the yen rose
9.08%. An overweighted exposure to the U.K., which lagged the rest of Europe,
also held back performance.
OUTLOOK
We expect foreign markets to continue to perform reasonably well in 1997
due to low interest rates, improving economic growth and corporate
restructuring efforts. Our exposure to economically sensitive areas of the
world has increased, but we continue to emphasize companies that can provide
above-average profit growth over the long term.
Although the Latin American markets have posted strong gains in the last
six months, they are coming off of very low bases and are relatively
inexpensive to the rest of the world. We are still positive on the outlook for
the region for the remainder of the year.
The outlook for Japan is also modest but better than had been expected six
months ago. We find some opportunities in the market, but most are not vastly
superior to opportunities elsewhere in the world. Our weighting has been
increased slightly, but we would need substantial improvement in the outlook
for earnings to become more positive.
Since our last report, we have reduced our holdings in Hong Kong based on
concerns regarding a potential clamp down on real estate property prices. We
viewed the sizable correction in the Philippines as a buying opportunity.
* The Morgan Stanley Capital International EAFE Index is an unmanaged, commonly
used measure of foreign stock total return performance.
14
<PAGE>
Phoenix International Portfolio
- --------------------------------------------------------------------------------
INVESTMENTS AT MAY 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
----------- -------------
<S> <C> <C>
FOREIGN COMMON STOCKS--90.7%
Belgium--1.4%
Credit Communal Holding/Dexia
(Banks) ................................. 20,000 $ 1,996,484
------------
Brazil--4.0%
Companhia Energetica de Minas Gerais
Sponsored ADR (Utility-Electric) ......... 48,000 2,177,228
Telebras Sponsored ADR (Utility-
Telephone) .............................. 17,700 2,431,537
Uniao de Bancos Brasileiros SA
Sponsored GDR (Banks) .................. 32,000 1,104,000
------------
5,712,765
------------
Chile--1.0%
Santa Isabel SA Sponsored ADR
(Retail-Food) ........................... 50,000 1,456,250
------------
Denmark--1.6%
Den Danske Bank (Banks) ..................... 23,500 2,239,616
------------
Finland--3.0%
Nokia AB Series A
(Telecommunications Equipment) ......... 22,300 1,458,724
Raision Tehtaat Oy (Food) .................. 17,400 1,421,901
The Rauma Group (Machinery) ............... 61,000 1,424,235
------------
4,304,860
------------
France--7.1%
AXA-UAP (Insurance) ........................ 24,931 1,495,063
Carrefour Supermarche (Retail-Food) ......... 2,510 1,651,144
Elf Aquitaine SA (Oil) ..................... 7,300 731,090
Lagardere S.C.A. (Miscellaneous) ............ 48,825 1,438,971
Louis Dreyfus Citrus (Food) (b) ............ 33,000 1,197,105
Promodes (Retail) ........................... 4,800 1,628,771
Total SA (Oil) .............................. 8,300 760,648
Usinor Sacilor (Steel) ..................... 90,500 1,360,312
------------
10,263,104
------------
Germany--5.3%
Adidas AG (Textile & Apparel) ............... 16,150 1,699,751
BASF AG (Chemical) ........................ 28,700 1,060,159
BHW Holding AG (Banks) (b) .................. 90,000 1,572,560
Rhoen-Klinikum AG (Hospital
Management & Services) .................. 5,850 696,306
Schmalbach Lubeca AG (Containers) ......... 6,150 1,399,120
VEBA AG (Utility-Electric) .................. 22,700 1,285,734
------------
7,713,630
------------
Hong Kong--2.8%
Beijing Datang Power Generation Co.
Ltd. (Utility-Electric) (b) ............ 3,800,000 1,912,628
China Eastern Airlines Corp. Ltd. H
Shares (Airlines) (b) .................. 5,789,000 1,699,681
Henderson China Holding Ltd.
(Real Estate) ........................... 780 1,500
Zhejiang Expressway Co. Ltd.
(Engineering & Construction) (b) ......... 1,300,000 469,768
------------
4,083,577
------------
SHARES VALUE
----------- -------------
<S> <C> <C>
Hungary--0.5%
Gedeon Richter 144A GDS (Health
Care-Drugs) (d) ........................ 8,700 $ 723,354
------------
Indonesia--0.4%
Wicaksana Overseas International
(Conglomerates) ........................ 520,000 630,627
------------
Italy--5.0%
Gucci Group NV (Textile & Apparel) ......... 19,600 1,357,607
Gucci Group NV-NY Registered Shares
(Textile & Apparel) ..................... 24,800 1,729,800
Istituto Bancario San Paolo di Torino
(Banks) ................................. 147,400 928,329
Stet-Societa' Finanziaria Telefonica SPA
(Utility-Telephone) ..................... 632,000 3,193,994
------------
7,209,730
------------
Japan--12.5%
Canon, Inc. (Office & Business
Equipment) .............................. 58,000 1,468,291
Circle K Japan Co. Ltd. (Retail-Food) ...... 26,400 1,406,882
Credit Saison Co. Ltd. (Diversified
Financial Services) ..................... 72,450 1,585,407
DDI Corp. (Utility-Telephone) ............... 240 1,789,754
Hitachi Maxell (Electronics) ............... 36,000 834,120
Hoya Corp. (Machinery) ..................... 16,000 726,337
Matsushita Communication Industrial
(Telecommunications Equipment) ......... 40,000 1,270,059
Meitec (Computer Software & Services) . 48,000 1,264,567
Namco (Entertainment, Leisure &
Gaming) ................................. 33,000 1,155,411
Nintendo Co. Ltd. (Entertainment,
Leisure & Gaming) ........................ 21,500 1,678,967
Sankyo Co. Ltd. (Health Care-
Diversified) ........................... 38,000 1,203,295
Taisho Pharmaceutical Co. (Health
Care-Drugs) .............................. 42,000 1,052,433
Takeda Chemical Industries (Health
Care-Drugs) .............................. 65,000 1,645,499
TDK Corp. (Electronics) (b) ............... 12,000 920,621
------------
18,001,643
------------
Mexico--0.7%
Coca-Cola Femsa SA Sponsored ADR
(Beverages) .............................. 25,400 1,025,525
------------
Netherlands--4.4%
DSM NV (Chemical) ........................... 13,700 1,360,218
Philips Electronics NV (Electronics) ...... 34,300 1,878,840
Samas Groep NV (Office & Business
Equipment) .............................. 16,668 634,160
VNU-Verenigde Bezit (Publishing,
Broadcasting, Printing & Cable) ......... 106,700 2,413,499
------------
6,286,717
------------
</TABLE>
See Notes to Financial Statements
15
<PAGE>
Phoenix International Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
----------- -------------
<S> <C> <C>
Norway--1.7%
Schibsted ASA (Publishing,
Broadcasting, Printing & Cable) ......... 74,000 $ 1,383,528
Smedvig ASA A Shares (Oil) .................. 41,700 1,019,975
-------------
2,403,503
-------------
Peru--1.2%
Telefonica del Peru SA (Utility-
Telephone) .............................. 693,541 1,773,243
-------------
Philippines--2.5%
Ayala Land, Inc. Class B (Real Estate) ....... 1,366,000 1,087,621
Manila Electric Co. (Utility-Electric) ...... 167,000 937,100
Philippine Commercial International
Bank (Banks) .............................. 7,100 69,317
SM Prime Holdings, Inc. (Real Estate) ...... 3,046,000 866,161
San Miguel Corp. Class B (Beverages) ......... 219,400 661,319
-------------
3,621,518
-------------
Portugal--2.0%
Portugal Telecom SA (Utility-
Telephone) .............................. 31,600 1,214,230
Telecel-Comunicacoes Pessoais SA
(Telecommunications Equipment) (b) 21,300 1,638,509
-------------
2,852,739
-------------
South Korea--1.6%
Daewoo Securities Co. (Broker-
Dealers) (b) .............................. 44,200 570,162
Dongsuh Securities Co. (Broker-
Dealers) (b) .............................. 21,200 185,010
Hyundai Marine & Fire Insurance Co.
(Insurance) (b) ........................... 3,220 133,640
Hyundai Securities Co. (Diversified
Financial Services) (b) .................. 39,100 574,548
L.G. Electronics (Electronics) ............... 34,850 590,280
L.G. Securities (Diversified Financial
Services) (b) ........................... 18,200 191,901
Oriental Fire & Marine Insurance
(Insurance) .............................. 3,890 109,522
-------------
2,355,063
-------------
Spain--1.2%
Telefonica de Espana (Utility-
Telephone) .............................. 59,700 1,725,278
-------------
Sweden--0.4%
Biora AB (Medical Products &
Supplies) (b) ........................... 38,200 365,782
Biora AB Sponsored ADR (Medical
Products & Supplies) (b) .................. 14,000 266,000
-------------
631,782
-------------
Switzerland--6.5%
Ares-Serono Group B (Health Care-
Drugs) .................................... 1,300 1,769,051
Credit Suisse Group AG Registered
Shares (Banks) ........................... 14,000 1,759,155
Novartis AG Registered Shares (Health
Care-Drugs) .............................. 1,910 2,592,394
SIG Schweizerische Industrie-Gesellschaft
Holding AG Bearer Shares (Machinery). 440 1,321,928
SHARES VALUE
----------- -------------
<S> <C> <C>
Switzerland--continued
SIG Schweizerische Industrie-
Gesellschaft Holding AG Registered
Shares (Machinery) ........................ 150 $ 219,497
Zurich Verschierungs Registered
(Insurance) .............................. 4,870 1,790,188
-------------
9,452,213
-------------
United Kingdom--23.9%
Avis Europe PLC (Leasing/Rental) (b) ......... 730,000 1,582,543
British Aerospace PLC (Aerospace &
Defense) ................................. 140,500 2,856,205
Carlton Communications PLC
(Publishing, Broadcasting, Printing &
Cable) .................................... 196,000 1,683,573
Celltech PLC (Health Care-
Drugs) (b) .............................. 140,000 784,522
Compass Group PLC (Lodging &
Restaurants) .............................. 237,300 2,640,118
Cordiant PLC (Professional Services) ......... 1,246,000 2,517,687
Corporate Services Group PLC
(Professional Services) .................. 444,000 1,318,488
GKN PLC (Miscellaneous) ..................... 88,700 1,537,592
Granada Group PLC (Entertainment,
Leisure & Gaming) ........................ 132,000 1,871,368
Lloyds TSB Group PLC (Diversified
Financial Services) ..................... 220,000 2,210,078
Next PLC (Retail) ........................... 140,000 1,698,462
Rentokil Initial PLC (Professional
Services) ................................. 408,000 1,572,055
Rolls-Royce PLC (Aerospace &
Defense) ................................. 320,000 1,303,665
Shell Transport & Trading Co. PLC
(Oil) .................................... 126,000 2,483,099
Siebe PLC (Electrical Equipment) ............ 136,000 2,135,013
Smithkline Beecham PLC Sponsored
ADR (Health Care-Drugs) .................. 27,200 2,380,000
WPP Group PLC (Advertising) .................. 788,000 3,094,241
Williams PLC (Professional Services) ......... 183,000 932,665
-------------
34,601,374
-------------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $110,965,139) ............... 131,064,595
-------------
PREFERRED STOCKS--3.2%
Germany--2.1%
MAN AG (Autos & Trucks) ..................... 5,850 1,357,625
Volkswagen AG Pfd. (Autos & Trucks) ......... 3,400 1,674,582
-------------
3,032,207
-------------
United Kingdom--1.1%
Egypt Investment Co. (Multi-
Industry) (b) ........................... 100,000 1,525,000
-------------
TOTAL PREFERRED STOCKS
(Identified cost $3,731,494) ............... 4,557,207
-------------
TOTAL LONG-TERM INVESTMENTS--93.9%
(Identified cost $114,696,633) ............... 135,621,802
-------------
</TABLE>
See Notes to Financial Statements
16
<PAGE>
Phoenix International Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- -------- ------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--9.5%
Commercial Paper--7.8%
AT&T Corp. 5.50%, 6-2-97 ............ A-1+ $ 120 119,982
Enterprise Funding Corp.
5.56%, 6-5-97 .................. A-1+ 1,750 1,748,919
Heinz (H.J.) Co. 5.60%, 6-9-97 ...... A-1 2,600 2,596,764
International Lease Finance
Corp. 5.54%, 6-12-97 ............ A-1 1,360 1,357,698
Corporate Asset Funding Co.
5.50%, 6-24-97 .................. A-1+ 1,815 1,808,622
Donnelley (R.R.) & Sons Co.
5.52%, 7-7-97 .................. A-1 3,620 3,600,018
------------
11,232,003
------------
</TABLE>
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
--------- ---------------------
<S> <C> <C> <C>
Federal Agency Securities--1.7%
Federal National Mortgage Assoc. 5.28%,
6-5-97 (c) ........................... $ 2,500 $ 2,498,067
-----------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $13,730,536) 13,730,070
-----------------
TOTAL INVESTMENTS--103.4%
(Identified cost $128,427,169) 149,351,872(a)
Cash and receivables, less liabilities--(3.4%) ...... (4,868,637)
-----------------
NET ASSETS--100.0% ................................. $ 144,483,235
=================
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $22,276,808 and gross
depreciation of $1,425,105 for federal income tax purposes. At May 31,
1997, the aggregate cost of securities for federal income tax purposes was
$128,500,169.
(b) Non-income producing.
(c) Segregated as collateral for foreign currency contracts.
(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 May 31, 1997,
these securities amount to a value of $723,354 or 0.5% of net assets.
See Notes to Financial Statements
17
<PAGE>
Phoenix International Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of Long-Term Investments
(Unaudited)
<S> <C>
Advertising .......................................... 2.3%
Aerospace & Defense .................................... 3.1
Airlines ................................................ 1.3
Autos & Trucks ....................................... 2.2
Banks ................................................ 7.1
Beverages ............................................. 1.2
Broker-Dealers .......................................... 0.6
Chemical ............................................. 1.8
Computer Software & Services ........................... 0.9
Conglomerates .......................................... 0.5
Containers ............................................. 1.0
Diversified Financial Services ........................ 3.4
Electrical Equipment ................................. 1.6
Electronics .......................................... 3.1
Engineering & Construction ........................... 0.3
Entertainment, Leisure & Gaming ........................ 3.5
Food ................................................... 1.9
Health Care-Diversified .............................. 0.9
Health Care-Drugs .................................... 8.1
Hospital Management & Services ........................ 0.5
Insurance ............................................. 2.6
Leasing/Rental .......................................... 1.2
Lodging & Restaurants ................................. 1.9
Machinery ............................................. 2.7
Medical Products & Supplies ........................... 0.5
Miscellaneous .......................................... 2.2
Multi-Industry ....................................... 1.1
Office & Business Equipment ........................... 1.6
Oil ................................................... 3.7
Professional Services ................................. 4.7
Publishing, Broadcasting, Printing & Cable ............ 4.0
Real Estate .......................................... 1.4
Retail ................................................ 2.5
Retail-Food .......................................... 3.3
Steel ................................................ 1.0
Telecommunications Equipment ........................... 3.2
Textile & Apparel .................................... 3.5
Utility-Electric ....................................... 4.7
Utility-Telephone .................................... 8.9
------
100.0%
======
</TABLE>
18 See Notes to Financial Statements
<PAGE>
Phoenix International Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $128,427,169) $149,351,872
Foreign currency at value
(Identified cost $1,166,857) 1,161,993
Cash 6,946
Receivables
Investment securities sold 548,821
Dividends and interest 289,584
Fund shares sold 185,290
Tax reclaim 58,308
-------------
Total assets 151,602,814
-------------
Liabilities
Payables
Investment securities purchased 5,817,278
Fund shares repurchased 203,751
Net unrealized depreciation on forward currency
contracts 82,805
Closed foreign currency contracts 667,456
Transfer agent fee 104,291
Investment advisory fee 91,297
Distribution fee 36,854
Financial agent fee 7,423
Trustees' fee 5,789
Accrued expenses 102,635
-------------
Total liabilities 7,119,579
-------------
Net Assets $144,483,235
=============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $112,959,539
Undistributed net investment income 245,191
Accumulated net realized gain 10,427,595
Net unrealized appreciation 20,850,910
-------------
Net Assets $144,483,235
=============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $133,617,636) 9,520,610
Net asset value per share $14.03
Offering price per share
$14.03/(1-4.75%) $14.73
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $10,865,599) 790,285
Net asset value and offering price per share $13.75
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Investment income
Dividends $ 1,174,290
Interest 496,537
Foreign taxes withheld (100,976)
-----------
Total investment income 1,569,851
-----------
Expenses
Investment advisory fee 512,524
Distribution fee--Class A 160,627
Distribution fee--Class B 40,856
Financial agent fee 37,342
Transfer agent 192,216
Custodian 89,817
Professional 26,113
Printing 23,496
Registration 15,225
Trustees 11,262
Miscellaneous 6,815
-----------
Total expenses 1,116,293
-----------
Net investment income 453,558
-----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 8,429,573
Net realized gain on foreign currency transactions 2,016,969
Net change in unrealized appreciation (depreciation)
on investments 1,740,753
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions (517,736)
-----------
Net gain on investments 11,669,559
-----------
Net increase in net assets resulting from
operations $12,123,117
===========
</TABLE>
See Notes to Financial Statements
19
<PAGE>
Phoenix International Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
May 31, 1997 Year Ended
(Unaudited) November 30, 1996
--------------- ------------------
<S> <C> <C>
From Operations
Net investment income $ 453,558 $ 430,320
Net realized gain 10,446,542 14,699,299
Net change in unrealized appreciation (depreciation) 1,223,017 9,723,676
------------- --------------
Increase in net assets resulting from operations 12,123,117 24,853,295
------------- --------------
From Distributions to Shareholders
Net investment income--Class A (2,315,369) --
Net investment income--Class B (106,314) --
Net realized gains--Class A (11,976,929) (365,795)
Net realized gains--Class B (655,922) (9,318)
------------- --------------
Decrease in net assets from distributions to shareholders (15,054,534) (375,113)
------------- --------------
From Share Transactions
Class A
Proceeds from sales of shares (2,441,892 and 11,106,013 shares, respectively) 32,740,592 151,805,606
Net asset value of shares issued from reinvestment of distributions (993,727 and
27,365 shares, respectively) 12,670,027 332,491
Cost of shares repurchased (3,277,319 and 12,375,802 shares, respectively) (44,441,896) (169,679,302)
------------- --------------
Total 968,723 (17,541,205)
------------- --------------
Class B
Proceeds from sales of shares (372,969 and 357,180 shares, respectively) 4,971,523 4,778,686
Net asset value of shares issued from reinvestment of distributions (55,069 and
673 shares, respectively) 690,567 8,087
Cost of shares repurchased (126,925 and 138,908 shares, respectively) (1,694,873) (1,858,546)
------------- --------------
Total 3,967,217 2,928,227
------------- --------------
Increase (decrease) in net assets from share transactions 4,935,940 (14,612,978)
------------- --------------
Net increase in net assets 2,004,523 9,865,204
Net Assets
Beginning of period 142,478,712 132,613,508
------------- --------------
End of period (including undistributed net investment income of
$245,191 and $2,213,316, respectively) $144,483,235 $ 142,478,712
============= ==============
</TABLE>
20 See Notes to Financial Statements
<PAGE>
Phoenix International Portfolio
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-------------------------------
Six Months
Ended Year Ended
5/31/97 November 30,
(Unaudited) 1996
---------------- --------------
<S> <C> <C>
Net asset value, beginning of period $ 14.48 $ 12.20
Income from investment operations(5)
Net investment income (loss) 0.05(1) 0.04(1)
Net realized and unrealized gain (loss) 1.10 2.28
--------- ----------
Total from investment operations 1.15 2.32
--------- ----------
Less distributions
Dividends from net investment income (0.26) --
Dividends from net realized gains (1.34) (0.04)
In excess of accumulated net investment income -- --
--------- ----------
Total distributions (1.60) (0.04)
--------- ----------
Change in net asset value (0.45) 2.28
--------- ----------
Net asset value, end of period $ 14.03 $ 14.48
========= ==========
Total return(2) 9.11%(4) 19.03%
Ratios/supplemental data:
Net assets, end of period (thousands) $ 133,618 $ 135,524
Ratio to average net assets of:
Operating expenses 1.59%(3) 1.57%
Net investment income (loss) 0.70%(3) 0.33%
Portfolio turnover 67%(4) 151%
Average commission rate paid(6) $ 0.0144 $ 0.0205
<CAPTION>
Year Ended November 30,
1995 1994 1993 1992
-------------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.63 $ 11.16 $ 8.96 $ 10.90
Income from investment operations(5)
Net investment income (loss) 0.03(1) (0.01) -- 0.11
Net realized and unrealized gain (loss) 0.42 1.48 2.20 (1.10)
---------- --------- ---------- ----------
Total from investment operations 0.45 1.47 2.20 (0.99)
---------- --------- ---------- ----------
Less distributions
Dividends from net investment income -- -- -- (0.12)
Dividends from net realized gains (0.88) -- -- (0.64)
In excess of accumulated net investment income -- -- -- (0.19)
---------- --------- ---------- ----------
Total distributions (0.88) -- -- (0.95)
---------- --------- ---------- ----------
Change in net asset value (0.43) 1.47 2.20 (1.94)
---------- --------- ---------- ----------
Net asset value, end of period $ 12.20 $ 12.63 $11.16 $ 8.96
========== ========= ========== ==========
Total return(2) 4.12% 13.17% 24.55% (9.91)%
Ratios/supplemental data:
Net assets, end of period (thousands) $129,352 $167,918 $91,196 $26,188
Ratio to average net assets of:
Operating expenses 1.70% 1.47% 1.78% 1.97%
Net investment income (loss) 0.23% 0.20% (0.04)% 0.85%
Portfolio turnover 236% 186% 191% 82%
Average commission rate paid(6) N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
Class B
-----------------------------------------------------------------------
Six Months
Ended From Inception
5/31/97 Year Ended November 30, 7/15/94 to
(Unaudited) 1996 1995 11/30/94
-------------- ----------- --------------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.22 $ 12.07 $12.60 $12.80
Income from investment operations(5)
Net investment income (loss) --(1) (0.05)(1) (0.07)(1) (0.01)
Net realized and unrealized gain (loss) 1.08 2.24 0.42 (0.19)
--------- ------- ------- --------
Total from investment operations 1.08 2.19 0.35 (0.20)
--------- ------- ------- --------
Less distributions
Dividends from net investment income (0.21) -- -- --
Dividends from net realized gains (1.34) (0.04) (0.88) --
In excess of accumulated net investment income -- -- -- --
--------- ------- ------- --------
Total distributions (1.55) (0.04) (0.88) --
--------- ------- ------- --------
Change in net asset value (0.47) 2.15 (0.53) (0.20)
--------- ------- ------- -------
Net asset value, end of period $ 13.75 $ 14.22 $12.07 $12.60
========= ======= ======= ========
Total return(2) 8.72%(4) 18.16% 3.28% (1.56)%(4)
Ratios/supplemental data:
Net assets, end of period (thousands) $ 10,866 $ 6,955 $3,261 $1,991
Ratio to average net assets of:
Operating expenses 2.34%(3) 2.31 % 2.50 % 1.93 %(3)
Net investment income (loss) 0.06%(3) (0.39)% (0.61)% 0.36 %(3)
Portfolio turnover 67%(4) 151 % 236 % 186 %
Average commission rate paid(6) $ 0.0144 $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
21
<PAGE>
- --------------------------------------------------------------------------------
PHOENIX REAL ESTATE SECURITIES PORTFOLIO
- --------------------------------------------------------------------------------
INVESTOR PROFILE
Phoenix Real Estate Securities Portfolio is designed for investors seeking
investment in real assets. The Portfolio's objective is to emphasize current
yield and appreciation equally.
INVESTMENT ADVISER'S REPORT
For the six months ended May 31, 1997, the Real Estate Securities
Portfolio generated total returns of 12.41% and 12.09% for the A and B shares,
respectively, outperforming the NAREIT Equity Total Return Index* return of
11.30%. All performance figures assume reinvestment of dividends and exclude
the effect of sales charges.
Our investment strategy is to emphasize market sectors with strong
underlying fundamentals and prospects for growth in excess of market averages
as well as sectors that are significantly undervalued on a risk-adjusted basis.
Over the past six months, the Portfolio benefited from its significant
overweighting in hotels and apartments. While performance was somewhat tempered
by our low allocation to mall REITs, which generated very strong results, the
Portfolio's return benefited from our specific investments in the strip-retail
REIT sector.
Real estate securities significantly outperformed the broader public
equity markets during 1996, and then experienced a minor correction during the
first four months of 1997. REIT performance was impacted by several factors.
First, there was a tremendous volume of capital-raising activity, which put
downward pressure on prices. In addition, a significant rise in interest rates
resulted in dividend yields that, other than for two brief periods in 1991 and
1994, were below 10-year Treasury yields for the first time since 1989. On a
weighted average basis, REIT total return dropped 2.06% through April, and then
experienced a modest recovery in May. The recovery was, in part, supported by
very strong first-quarter operational performance. First-quarter growth in
funds from operation (FFO) was 11%, well above industry analyst expectations of
9.9%.
OUTLOOK
The outlook for REITs for the remainder of 1997 remains very strong for a
number of reasons. First, the underlying real estate market continues to
evidence stability, with construction levels in most markets trailing expected
demand growth. Second, funds from operations multiples -- comparable to a P/E
ratio for non-REITs -- are in line with historic levels and well below the
broader market P/E ratios. Third, dividend yields, albeit below pre-1996
levels, are higher than at year-end 1996 and provide a very attractive benefit
relative to the broader market. As of May 31, 1997, the average dividend yield
for REITs was 6.28% -- more than three times the yield provided by the S&P 500
and well above the S&P Utility Index average of 4.7%. Finally, both individual
and institutional investor demand is expected to continue to expand. We intend
to maintain the Portfolio's emphasis on mixed office/industrial and hotel
REITs, which we believe have good upside potential, and remain underweighted in
the retail sector.
* The NAREIT Equity Total Return Index is a market-weighted total return of
all tax-qualified REITs listed on the New York Stock Exchange, American
Stock Exchange and the NASDAQ National Market System.
22
<PAGE>
Phoenix Real Estate Securities Portfolio
- --------------------------------------------------------------------------------
INVESTMENTS AT MAY 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C>
COMMON STOCKS--98.8%
REAL ESTATE INVESTMENT TRUSTS--90.5%
COMMERCIAL--29.2%
Office/Industrial--23.4%
Beacon Properties Corp. .................. 28,700 $ 889,700
Cali Realty Corp. ........................ 17,900 530,288
CarrAmerica Realty Corp. .................. 30,500 865,438
Duke Realty Investments, Inc. ............ 46,700 1,780,437
Highwoods Properties, Inc. ............... 73,000 2,208,250
Kilroy Realty Corp. ..................... 18,100 434,400
Reckson Associates Realty Corp. ......... 18,700 420,750
Spieker Properties, Inc. .................. 60,000 2,212,500
Weeks Corp. .............................. 35,400 1,115,100
------------
10,456,863
------------
Storage--5.8%
Public Storage, Inc. ..................... 36,400 969,150
Shurgard Storage Centers, Inc. Class A . 17,200 481,600
Storage USA, Inc. ........................ 29,700 1,132,312
------------
2,583,062
------------
TOTAL COMMERCIAL .................................... 13,039,925
------------
HEALTH CARE--2.6%
Nationwide Health Properties, Inc. ...... 53,400 1,148,100
------------
HOTELS--11.6%
FelCor Suite Hotels, Inc. ............... 44,300 1,650,175
Patriot American Hospitality, Inc. ...... 95,800 2,071,675
Starwood Lodging Trust .................. 39,000 1,452,750
------------
5,174,600
------------
RESIDENTIAL--30.5%
Apartments--26.4%
Avalon Properties, Inc. .................. 31,400 863,500
Bay Apartment Communities, Inc. ......... 36,700 1,293,675
Camden Property Trust ..................... 31,600 928,250
Columbus Realty Trust ..................... 24,700 543,400
Equity Residential Properties Trust ...... 29,800 1,408,050
Evans Withycombe Residential, Inc. ...... 48,100 986,050
Irvine Apartment Communities, Inc. ...... 40,500 1,139,062
Merry Land & Investment Co. ............... 50,700 1,064,700
Oasis Residential, Inc. .................. 38,800 892,400
Post Properties, Inc. ..................... 32,900 1,307,775
United Dominion Realty Trust ............ 89,900 1,326,025
------------
11,752,887
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
--------- --------------------
<S> <C> <C>
Manufactured Homes--4.1%
Manufactured Home Communities, Inc. 41,500 $ 913,000
Sun Communities, Inc. ............ 28,200 920,025
------------
1,833,025
------------
TOTAL RESIDENTIAL ........................... 13,585,912
------------
RETAIL--16.6%
Community/Neighborhood--7.8%
Developers Diversified Realty Corp. 23,600 879,100
Federal Realty Investment Trust ... 29,700 775,912
Regency Realty Corp. ............... 16,800 443,100
Vornado Realty Trust ............... 20,400 1,397,400
------------
3,495,512
------------
Factory Outlet--2.3%
Chelsea G.C.A. Realty, Inc. ...... 27,600 1,003,950
------------
Regional Malls--6.5%
Simon DeBartolo Group, Inc. ...... 22,208 671,792
Taubman Centers, Inc. ............ 94,700 1,231,100
The Macerich Co. .................. 36,800 993,600
------------
2,896,492
------------
TOTAL RETAIL ................................. 7,395,954
------------
TOTAL REAL ESTATE INVESTMENT TRUSTS
(Identified cost $35,076,515) ............... 40,344,491
------------
REAL ESTATE OPERATING COMPANIES--8.3%
Hotels--7.3%
CapStar Hotel Co. (b) ............ 37,300 1,119,000
Host Marriott Corp. (b) ............ 120,700 2,127,338
------------
3,246,338
------------
Regional Malls--1.0%
Rouse Co. ........................ 16,500 459,938
------------
TOTAL REAL ESTATE OPERATING COMPANIES
(Identified cost $3,094,469) .................. 3,706,276
------------
TOTAL COMMON STOCKS
(Identified cost $38,170,984) ............... 44,050,767
------------
TOTAL INVESTMENTS--98.8%
(Identified cost $38,170,984) ............... 44,050,767(a)
Cash and receivables, less liabilities--1.2% 520,674
------------
NET ASSETS--100.0% ........................... $44,571,441
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $6,412,539 and gross
depreciation of $532,756 for federal income tax purposes. At May 31, 1997,
the aggregate cost of securities for federal income tax purposes was
$38,170,984.
(b) Non-income producing.
See Notes to Financial Statements
23
<PAGE>
Phoenix Real Estate Securities Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $38,170,984) $44,050,767
Cash 445,478
Receivables
Fund shares sold 213,445
Dividends and interest 65,064
------------
Total assets 44,774,754
------------
Liabilities
Payables
Fund shares repurchased 108,912
Distribution fee 19,430
Investment advisory fee 16,548
Trustees' fee 7,272
Financial agent fee 6,964
Transfer agent fee 4,104
Accrued expenses 40,083
------------
Total liabilities 203,313
------------
Net Assets $44,571,441
============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $36,654,465
Undistributed net investment loss (49,061)
Accumulated net realized gain 2,086,254
Net unrealized appreciation 5,879,783
------------
Net Assets $44,571,441
============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $28,368,433) 1,993,278
Net asset value per share $14.23
Offering price per share
$14.23/(1-4.75%) $14.94
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $16,203,008) 1,142,251
Net asset value and offering price per share $14.19
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Investment Income
Dividends $ 792,835
Interest 13,279
----------
Total investment income 806,114
----------
Expenses
Investment advisory fee 157,504
Distribution fee--Class A 36,403
Distribution fee--Class B 64,393
Financial agent fee 34,769
Transfer agent 26,204
Professional 17,694
Registration 11,460
Trustees 10,908
Printing 9,531
Custodian 5,934
Miscellaneous 371
----------
Total expenses 375,171
Less expenses borne by investment adviser (53,869)
----------
Net expenses 321,302
----------
Net investment income 484,812
----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 2,088,684
Net change in unrealized appreciation (depreciation) on
investments 1,351,077
----------
Net gain on investments 3,439,761
----------
Net increase in net assets resulting from
operations $3,924,573
==========
</TABLE>
See Notes to Financial Statements
24
<PAGE>
Phoenix Real Estate Securities Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
May 31, 1997 Year Ended
(Unaudited) November 30, 1996
-------------- ------------------
<S> <C> <C>
From Operations
Net investment income $ 484,812 $ 993,652
Net realized gain 2,088,684 605,112
Net change in unrealized appreciation (depreciation) 1,351,077 4,233,859
------------ ------------
Increase in net assets resulting from operations 3,924,573 5,832,623
------------ ------------
From Distributions to Shareholders
Net investment income--Class A (542,292) (861,331)
Net investment income--Class B (184,180) (163,427)
Net realized gains--Class A (436,592) (22,396)
Net realized gains--Class B (164,397) (3,977)
------------ ------------
Decrease in net assets from distributions to shareholders (1,327,461) (1,051,131)
------------ ------------
From Share Transactions
Class A
Proceeds from sales of shares (704,379 and 603,974 shares, respectively) 9,994,293 7,207,751
Net asset value of shares issued from reinvestment of distributions (67,199 and
73,246 shares, respectively) 928,581 838,272
Cost of shares repurchased (519,470 and 227,727 shares, respectively) (7,309,231) (2,803,944)
------------ ------------
Total 3,613,643 5,242,079
------------ ------------
Class B
Proceeds from sales of shares (548,668 and 436,484 shares, respectively) 7,761,110 5,218,052
Net asset value of shares issued from reinvestment of distributions (20,855 and
12,304 shares, respectively) 287,719 141,327
Cost of shares repurchased (57,646 and 28,003 shares, respectively) (818,392) (333,067)
------------ ------------
Total 7,230,437 5,026,312
------------ ------------
Increase in net assets from share transactions 10,844,080 10,268,391
------------ ------------
Net increase in net assets 13,441,192 15,049,883
Net Assets
Beginning of period 31,130,249 16,080,366
------------ ------------
End of period (including undistributed net investment income (loss) of
($49,061) and $192,599, respectively) $44,571,441 $ 31,130,249
============ ============
</TABLE>
See Notes to Financial Statements
25
<PAGE>
Phoenix Real Estate Securities Portfolio
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
----------------------------------------------------
Six Months
Ended Year Ended From Inception
5/31/97 November 30, 3/1/95
(Unaudited) 1996 to 11/30/95
------------ ----------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 13.14 $ 10.72 $ 10.00
Income from investment operations
Net investment income 0.18(4)(5) 0.53(5) 0.43(4)(5)
Net realized and unrealized gain 1.44 2.50 0.55
----- ----- ------
Total from investment operations 1.62 3.03 0.98
----- ----- ------
Less distributions
Dividends from net investment income (0.28) (0.59) (0.26)
Dividends from net realized gains (0.25) (0.02) --
----- ----- ------
Total distributions (0.53) (0.61) (0.26)
----- ----- ------
Change in net asset value 1.09 2.42 0.72
----- ----- ------
Net asset value, end of period $ 14.23 $ 13.14 $ 10.72
===== ===== ======
Total return(1) 12.41%(3) 29.20% 9.87%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $28,368 $22,872 $13,842
Ratio to average net assets of:
Operating expenses 1.30%(2) 1.30% 1.30%(2)
Net investment income 2.55%(2) 4.55% 5.79%(2)
Portfolio turnover 21%(3) 24% 9%(3)
Average commission rate paid(7) $0.0490 $ 0.0478 N/A
</TABLE>
<TABLE>
<CAPTION>
Class B
-------------------------------------------------------
Six Months
Ended Year Ended From Inception
5/31/97 November 30, 3/1/95
(Unaudited) 1996 to 11/30/95
------------- -------------- --------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 13.10 $ 10.68 $10.00
Income from investment operations
Net investment income 0.12(4)(6) 0.46(6) 0.36(4)(6)
Net realized and unrealized gain 1.45 2.47 0.56
------- ------ -----
Total from investment operations 1.57 2.93 0.92
------- ------ -----
Less distributions
Dividends from net investment income (0.23) (0.49) (0.24)
Dividends from net realized gains (0.25) (0.02) --
------- ------ -----
Total distributions (0.48) (0.51) (0.24)
------- ------ -----
Change in net asset value 1.09 2.42 0.68
------- ------ -----
Net asset value, end of period $ 14.19 $ 13.10 $10.68
======= ====== =====
Total return(1) 12.09%(3) 28.25% 9.21%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $16,203 $ 8,259 $2,239
Ratio to average net assets of:
Operating expenses 2.05%(2) 2.05% 2.05%(2)
Net investment income 1.77%(2) 3.95% 5.03%(2)
Portfolio turnover 21%(3) 24% 9%(3)
Average commission rate paid(7) $0.0490 $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
$0.02, $0.07 and $0.12, respectively.
(6) Includes reimbursement of operating expenses by investment adviser of
$0.02, $0.07 and $0.12, respectively.
(7) 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
26
<PAGE>
- --------------------------------------------------------------------------------
PHOENIX EMERGING MARKETS BOND PORTFOLIO
- --------------------------------------------------------------------------------
INVESTOR PROFILE
Phoenix Emerging Markets Portfolio is designed for long-term investors
seeking high current income and long-term capital appreciation by investing in
emerging-markets debt. The Portfolio currently concentrates its investments in
Latin America, Central and Eastern Europe and developing Asian countries.
Investors should note that foreign investments pose additional risks, such as
currency fluctuations, less public information and political and economic
uncertainty.
INVESTMENT ADVISER'S REPORT
For the six months ended May 31, 1997, the Portfolio consistently
outperformed the broad fixed-income market as measured by the Lehman Brothers
Aggregate Bond Index* as well as its benchmark, the J.P. Morgan Emerging
Markets Bond Index Plus.** Class A shares returned 14.70% and Class B shares
14.21% compared with 0.93% for the Lehman Aggregate and 9.08% for the J.P.
Morgan Emerging Markets Index. All performance figures assume reinvestment of
dividends and exclude the effect of sales charges.
The emerging-markets sector of the bond market continues to outperform all
other fixed-income categories as a result of improving country fundamentals and
strong investor demand. Overweighted positions in Bulgaria and Argentina were
the primary contributors to the outstanding performance over the reporting
period. An underweighting in Eurobonds, which generally underperformed Brady
bonds, also helped performance.
The current focus is on Eastern and Central Europe, including the larger
former Soviet Union countries. Additionally, selected opportunities in South
Africa and Morocco should contribute to geographical diversification. Our
emphasis is on transition economies -- those that are already developed and are
constructing market-oriented management systems.
OUTLOOK
Despite its extended rally, we continue to believe the outlook for the
emerging-markets sector is very favorable. Overall, valuations remain
attractive by historical standards, and investor demand for these types of
fixed-income securities remains high. As anticipated, volatility has declined
as more long-term institutional investors enter the market, and we expect this
trend to continue.
In terms of country selection, we see a great deal of potential in Russia,
Bulgaria and Brazil because of their more advanced transition economies. The
largest country allocations as of May 31 were Russia, Brazil and Argentina.
* The Lehman Brothers Aggregate Bond Index is an unmanaged, commonly used
measure of bond market total return performance.
** The J.P. Morgan Emerging Markets Bond Index Plus tracks total returns for
traded, external debt in emerging markets. Included in the index are U.S.
dollar- and other external-denominated Brady bonds, loans, Eurobonds, and
local markets instruments.
27
<PAGE>
Phoenix Emerging Markets Bond Portfolio
- --------------------------------------------------------------------------------
INVESTMENTS AT MAY 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
MOODY'S PAR
BOND VALUE
RATING (000) VALUE
--------- ------------------- -------------
<S> <C> <C> <C>
FOREIGN GOVERNMENT SECURITIES--87.1%
Algeria--5.8%
Algeria Tranche 1 Unaffected Loans
6.563%, '06 (c) .................. NR $ 791 $ 680,181
Algeria Tranche 3 5.696%, '10 (c) . NR 4,275 3,120,750
Algeria Tranche A Loans 7.25%, '00 (c) NR 659 566,819
------------
4,367,750
------------
Argentina--13.8%
Republic of Argentina
Registered 11.75%, '07 (e) ...... BBB(i) 9,525 10,406,062
------------
Brazil--13.8%
Republic of Brazil C Bond,
PIK interest capitalization,
8%, '14 (c) ..................... B 4,483 3,573,631
Republic of Brazil DCB
Registered 6.938%, '12 (c) ...... B 3,000 2,475,000
Republic of Brazil DCB-L Euro
6.938%, '12 (c) (e) ............ B 4,300 3,547,500
Republic of Brazil Exit Bond
Euro 6%, '13 ..................... B 1,000 756,875
------------
10,353,006
------------
Bulgaria--8.2%
Republic of Bulgaria FLIRB-A
Bearer Euro 2.25%, '12 (c) ...... B 750 394,688
Republic of Bulgaria FLIRB
Registered A 2.25%, '12 (c) . NR 1,250 657,813
Republic of Bulgaria IAB PDI
Euro 6.563%, '11 (c) (e) ......... B 7,500 5,123,437
------------
6,175,938
------------
Dominican Republic--0.7%
Dominican Republic Stripped
6.375%, '98 (c) .................. NR 750 487,350
------------
Ecuador--2.4%
Ecuador Bearer PDI Euro, PIK interest
capitalization, 6.438%, '15 (c) . NR 1,141 741,201
Ecuador Registered PDI, PIK
interest capitalization,
6.438%, '15 (c) .................. NR 1,668 1,083,830
------------
1,825,031
------------
Ivory Coast--2.6%
Ivory Coast FLIRB WI 2% (c) (f) NR 1,000 308,750
Ivory Coast Non-performing
Loans (b) ........................ NR 1,356(k) 102,966
Ivory Coast Non-Performing
Loans (b) ........................ NR 3,000 1,192,500
Ivory Coast PDI WI 2% (c) (f) ...... NR 1,000 366,250
------------
1,970,466
------------
MOODY'S PAR
BOND VALUE
RATING (000) VALUE
--------- ------------------- -------------
<S> <C> <C> <C>
Mexico--8.6%
Mexican Cetes 0%, '97 ............... A $ 32,789(g) $ 3,725,737
Mexican Cetes 0%, '97 ............... A 10,493(g) 1,173,544
Mexican Cetes 0%, '98 ............... A 9,682(g) 1,006,469
United Mexican States Global
Bond 11.50%, '26 ............... Ba 500 555,625
------------
6,461,375
------------
Morocco--1.1%
Morocco R&C Agreement Series
A 6.375%, '09 (c) ............... NR 900 808,313
------------
Nigeria--1.3%
Nigeria Promissory Notes
5.092%, '10 (c) (j) ............ NR 1,382 970,690
------------
Peru--1.2%
Peru FLIRB 3.25%, '17 (c) ......... NR 1,000 580,000
Peru PDI 144A 4%, '17 (c) (d) . NR 525 334,688
------------
914,688
------------
Russia--16.5%
CS First Boston GKO Russian
Linked Notes 144A '98 (b) (d) NR 15,004,000(h) 2,120,065
Chase Manhattan Securities
GKO Russian Linked Notes
144A '98 (b) (d) ............... NR 7,370,000(h) 1,091,718
Russia Principal Loans WI (c) (f) NR 6,750 4,222,969
Vnesheconombak Loans Yankee
(b) .............................. NR 5,775 4,995,375
------------
12,430,127
------------
South Africa--0.7%
Republic of South Africa 13%,
'10 .............................. Baa 2,600(l) 509,644
------------
Ukraine--4.1%
BT Trust Ukrainian Notes 0%,
'97 .............................. NR 1,000 986,487
BT Trust Ukrainian Notes 0%,
'98 .............................. NR 1,000 855,075
ING Ukrainian Notes 0%, '98 ......... NR 3,061(m) 1,251,961
------------
3,093,523
------------
Venezuela--6.3%
Banco Central Venezuela NMB
B-P 3 6.50%, '05 (c) (e) ......... Ba 500 460,000
Republic of Venezuela DCB
Euro 6.50%, '07 (c) (e) ......... Ba 3,500 3,198,125
Republic of Venezuela FLIRB-A
6.75%, '07 (c) (e) ............... Ba 1,190 1,090,029
------------
4,748,154
------------
</TABLE>
See Notes to Financial Statements
28
<PAGE>
Phoenix Emerging Markets Bond Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S PAR
BOND VALUE
RATING (000) VALUE
---------- ------------- --------------------
<S> <C> <C> <C>
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified cost $63,073,046) .................................... $ 65,522,117
----------------
FOREIGN NON-CONVERTIBLE BONDS--7.4%
Argentina--1.4%
Impsat Corp. 12.125%, '03
(Utilities-Telephone) ............... B $ 1,000 1,060,000
----------------
Brazil--2.6%
Paging Network Do Brasil Units
144A 13.50%, '05
(Telecommunications
Equipment) (d) ..................... NR 900 900,000
Tevecap SA 12.625%, '04
(Industrial) ........................ B 1,000 1,070,000
----------------
1,970,000
----------------
Ecuador--0.4%
Consorcio Ecuatoriano TE 144A
14%, '02 (Industrial) (d) ............ NR 300 313,500
----------------
Mexico--3.0%
Grupo Mex De Desarrollo
8.25%, '01 (Engineering &
Construction) ........................ Caa 700 497,875
Grupo Televisa SA 144A 0%,
'08 (Industrial) (c) (d) ............ NR 1,000 686,250
Innova S De R.L. 144A
12.875%, '07 (Industrial) (d) ......... B 1,000 1,040,000
----------------
2,224,125
----------------
TOTAL FOREIGN NON-CONVERTIBLE BONDS
(Identified cost $5,406,663) ....................................... 5,567,625
----------------
MOODY'S PAR
BOND VALUE
RATING (000) VALUE
---------- ------------- --------------------
<S> <C> <C> <C>
FOREIGN CONVERTIBLE BONDS--1.8%
Mexico--1.8%
Consorcio Grupo Dina Cv. 8%,
'04 (Industrial) ..................... CCC(i) $ 1,700 $ 1,360,000
----------------
TOTAL FOREIGN CONVERTIBLE BONDS
(Identified cost $1,313,495) ............ 1,360,000
----------------
TOTAL LONG-TERM INVESTMENTS--96.3%
(Identified cost $69,793,204) 72,449,742
----------------
NUMBER
OF
CONTRACTS
-----------
OPTIONS--0.2%
Peru FLIRB Call Option July '97 $52.875
(Par subject to call $3,000,000) ...... 3 157,500
----------------
TOTAL OPTIONS
(Identified cost $135,000) 157,500
----------------
STANDARD PAR
& POOR'S VALUE
RATING (000)
-------- ----------
SHORT-TERM OBLIGATIONS--2.6%
Commercial Paper--2.6%
Ciesco L.P. 5.60%, 6-16-97 ............ A-1+ $ 1,940 1,935,473
----------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $1,935,473) 1,935,473
----------------
TOTAL INVESTMENTS--99.1%
(Identified cost $71,863,677) 74,542,715(a)
Cash and receivables, less liabilities--0.9% ..................... 709,121
----------------
NET ASSETS--100.0% ................................................ $ 75,251,836
================
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $2,802,377 and gross
depreciation of $123,339 for income tax purposes. At May 31, 1997, the
aggregate cost of securities for federal income tax purposes was
$71,863,677.
(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 May 31, 1997,
these securities amount to a value of $6,486,221 or 8.6% of net assets.
(e) Segregated as collateral.
(f) When issued.
(g) Par value represents Mexican Pesos.
(h) Par value represents Russian Rubles.
(i) As rated by Standard & Poor's, Fitch or Duff & Phelps.
(j) Warrants incorporated as a unit.
(k) Par value represents French Francs.
(l) Par value represents South African Rands.
(m) Par value represents Ukraine Hryvnas.
See Notes to Financial Statements
29
<PAGE>
Phoenix Emerging Markets Bond Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $71,863,677) $74,542,715
Cash 678,468
Receivables
Investment securities sold 26,981,793
Fund shares sold 1,335,451
Interest 927,655
-----------
Total assets 104,466,082
-----------
Liabilities
Payables
Investment securities purchased 28,954,219
Fund shares repurchased 75,425
Options written, at value
(Premiums received $33,750) 49,155
Investment advisory fee 45,106
Distribution fee 29,184
Trustees' fee 7,272
Financial agent fee 6,964
Transfer agent fee 5,057
Accrued expenses 41,864
-----------
Total liabilities 29,214,246
-----------
Net Assets $75,251,836
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $67,412,512
Undistributed net investment income 691,915
Accumulated net realized gain 4,483,776
Net unrealized appreciation 2,663,633
-----------
Net Assets $75,251,836
===========
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $51,390,826) 3,726,229
Net asset value per share $13.79
Offering price per share
$13.79/(1-4.75%) $14.48
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $23,861,010) 1,736,266
Net asset value and offering price per share $13.74
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Investment Income
Interest $ 3,388,517
-----------
Total investment income 3,388,517
-----------
Expenses
Investment advisory fee 201,078
Distribution fee--Class A 48,333
Distribution fee--Class B 74,770
Financial agent fee 34,917
Transfer agent 26,035
Professional 20,378
Custodian 14,867
Trustees 10,908
Registration 6,364
Printing 5,766
Miscellaneous 2,824
-----------
Total expenses 446,240
-----------
Net investment income 2,942,277
-----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 4,005,165
Net realized gain on written options 27,046
Net realized gain on foreign currency transactions 57,841
Net change in unrealized appreciation (depreciation) on
investments 160,718
Net change in unrealized appreciation (depreciation) on
written options (15,405)
-----------
Net gain on investments 4,235,365
-----------
Net increase in net assets resulting from
operations $ 7,177,642
===========
</TABLE>
30 See Notes to Financial Statements
<PAGE>
Phoenix Emerging Markets Bond Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
May 31, 1997 Year Ended
(Unaudited) November 30, 1996
--------------- ------------------
<S> <C> <C>
From Operations
Net investment income $ 2,942,277 $ 2,436,105
Net realized gain 4,090,052 6,344,543
Net change in unrealized appreciation (depreciation) 145,313 2,233,148
------------- -------------
Increase in net assets resulting from operations 7,177,642 11,013,796
------------- -------------
From Distributions to Shareholders
Net investment income--Class A (1,753,239) (1,792,007)
Net investment income--Class B (658,500) (458,779)
Net realized gains--Class A (4,477,701) --
Net realized gains--Class B (1,490,259) --
------------- -------------
Decrease in net assets from distributions to shareholders (8,379,699) (2,250,786)
------------- -------------
From Share Transactions
Class A
Proceeds from sales of shares (1,614,607 and 923,074 shares, respectively) 21,665,159 12,175,504
Net asset value of shares issued from reinvestment of distributions (450,412 and
131,956 shares, respectively) 5,742,130 1,635,413
Cost of shares repurchased (343,301 and 243,677 shares, respectively) (4,622,408) (3,184,227)
------------- -------------
Total 22,784,881 10,626,690
------------- -------------
Class B
Proceeds from sales of shares (1,270,552 and 700,581 shares, respectively) 16,920,292 8,585,460
Net asset value of shares issued from reinvestment of distributions (103,058 and
17,331 shares, respectively) 1,313,697 219,353
Cost of shares repurchased (294,644 and 119,165 shares, respectively) (3,938,983) (1,565,347)
------------- -------------
Total 14,295,006 7,239,466
------------- -------------
Increase in net assets from share transactions 37,079,887 17,866,156
------------- -------------
Net increase in net assets 35,877,830 26,629,166
Net Assets
Beginning of period 39,374,006 12,744,840
------------- -------------
End of period (including undistributed net investment income of
$691,915 and $161,377, respectively) $ 75,251,836 $ 39,374,006
============= =============
</TABLE>
See Notes to Financial Statements
31
<PAGE>
Phoenix Emerging Markets Bond Portfolio
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-------------------------------------------
Six Months From
Ended Year Ended Inception
5/31/97 November 30, 9/5/95 to
(Unaudited) 1996 11/30/95
------------ ------------ ---------
<S> <C> <C> <C>
Net asset value, beginning of period $ 14.80 $ 10.18 $ 10.00
Income from investment operations
Net investment income 0.74(4) 1.26(5) 0.25(4)(5)
Net realized and unrealized gain 1.08 4.56 0.18
------- -------- -----
Total from investment operations 1.82 5.82 0.43
------- -------- -----
Less distributions
Dividends from net investment income (0.60) (1.20) (0.25)
Dividends from net realized gains (2.23) -- --
------- -------- -----
Total distributions (2.83) (1.20) (0.25)
------- -------- -----
Change in net asset value (1.01) 4.62 0.18
------- -------- -----
Net asset value, end of period $ 13.79 $ 14.80 $ 10.18
======= ======== =====
Total return(1) 14.70%(3) 60.18% 4.40%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $51,391 $29,661 $12,149
Ratio to average net assets of:
Operating expenses 1.45%(2) 1.50% 1.50%(2)
Net investment income 11.16%(2) 10.41% 10.48%(2)
Portfolio turnover 363%(3) 378% 38%(3)
</TABLE>
<TABLE>
<CAPTION>
Class B
-----------------------------------------
Six Months From
Ended Year Ended Inception
5/31/97 November 30, 9/5/95 to
(Unaudited) 1996 11/30/95
------------ ------------ ------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 14.78 $10.18 $10.00
Income from investment operations
Net investment income 0.68(4) 1.19(6) 0.22(4)(6)
Net realized and unrealized gain 1.08 4.53 0.20
------- ------- -----
Total from investment operations 1.76 5.72 0.42
------- ------- -----
Less distributions
Dividends from net investment income (0.57) (1.12) (0.24)
Dividends from net realized gains (2.23) -- --
------- ------- -----
Total distributions (2.80) (1.12) (0.24)
------- ------- -----
Change in net asset value (1.04) 4.60 0.18
------- ------- -----
Net asset value, end of period $ 13.74 $14.78 $10.18
======= ======= =====
Total return(1) 14.21%(3) 58.94% 4.22%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $23,861 $9,713 $ 596
Ratio to average net assets of:
Operating expenses 2.20%(2) 2.25% 2.25%(2)
Net investment income 10.48%(2) 9.79% 10.29%(2)
Portfolio turnover 363%(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.
(6) Includes reimbursement of operating expenses by investment adviser of $0.07
and $0.03, respectively.
32 See Notes to Financial Statements
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS
May 31, 1997 (Unaudited)
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, six Portfolios are offered for sale: Tax-Exempt Bond Portfolio, Mid
Cap Portfolio, International Portfolio, Real Estate Securities Portfolio,
Emerging Markets Bond Portfolio, and Diversified Income Portfolio. The
Diversified Income Portfolio is reported separately from these financial
statements. Effective April 4, 1997, and until otherwise determined, the
Endowment Equity Portfolio, a seventh Portfolio, was liquidated and is not
available for sale. 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. 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 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
33
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS
May 31, 1997 (Unaudited) (Continued)
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. Options:
Each Portfolio may write covered options or purchase options contracts for
the purpose of hedging against changes in the market value of the underlying
securities or foreign currencies.
Each Portfolio will realize a gain or loss upon the expiration or closing
of the option transaction. Gains and losses on written options are reported
separately in the Statement of Operations. When a written option is exercised,
the proceeds on sales or amounts paid are adjusted by the amount of premium
received. Options written are reported as a liability in the Statement of
Assets and Liabilities and subsequently marked to market to reflect the current
value of the option. The risk associated with written options is that the
change in value of options contracts may not correspond to the change in value
of the hedged instruments. In addition, losses may arise from changes in the
value of the underlying instruments, or if a liquid secondary market does not
exist for the contracts.
Each Portfolio may purchase options which are included in the Portfolio's
Schedule of Investments and subsequently marked to market to reflect the
current value of the option. When a purchase option is exercised, the cost of
the security is adjusted by the amount of premium paid. The risk associated
with purchased options is limited to the premium paid.
I. 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.
J. Security lending:
The Trust (with the exception of the Real Estate Securities Portfolio)
loans securities to qualified brokers through an agree-
34
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS
May 31, 1997 (Unaudited) (Continued)
ment 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 May
31, 1997, the Trust had the following market value of security loans and
collateral:
Value of
Securities Value of
on Loan Collateral
------------ -----------
Mid Cap Portfolio $8,482,319 $8,503,800
K. 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.
L. 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
$94,200 for Class A shares and deferred sales charges of $118,221 for Class B
shares for the six months ended May 31, 1997. 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 six months ended May 31, 1997, $372,143 was retained by the
Distributor and $813,129 was paid out to unaffiliated Participants.
As Financial Agent of the Trust, PEPCO received a fee for bookkeeping,
administration, and pricing services at an annual rate of 0.03% of the average
daily net assets of each Portfolio through December 31, 1996, and starting on
January 1, 1997, at an annual rate of 0.05% of average daily net assets up to
$100 million, 0.04% of average daily net assets of $100 million to $300
million, 0.03% of average daily net assets of $300 million through $500
million, 0.015% of average daily net assets greater than $500 million; a
minimum fee may apply. PEPCO serves as the Trust's Transfer Agent with State
Street Bank and Trust Company as sub-transfer agent. For the six months ended
May 31, 1997, transfer agent fees were $841,494 of which PEPCO retained
$282,082 which is net of fees paid to State Street.
At May 31, 1997, 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 ...... 408,765 $ 4,480,060
Real Estate Securities
Portfolio--Class A ...... 545,368 7,760,583
Portfolio--Class B ......... 11,000 156,090
Emerging Markets Bond
Portfolio--Class A ...... 1,637,602 22,582,532
Portfolio--Class B ......... 13,769 189,186
35
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS
May 31, 1997 (Unaudited) (Continued)
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the six months ended May 31, 1997
(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 ......... $ 6,392,270 $ 14,257,685
Mid Cap Portfolio .................. 342,070,312 380,601,609
International Portfolio ............ 81,056,467 84,297,430
Real Estate Securities Portfolio ..... 18,197,852 8,773,617
Emerging Markets Bond
Portfolio ........................ 218,486,943 194,193,482
There were no purchases or sales of long-term U.S. Government and agency
securities during the six months ended May 31, 1997.
At May 31, 1997, 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 Appreciation
- ---------------- ----------- ------------ ------------ -------------
U.S. Treasury
September, '97
(Long) 15 $1,627,813 $1,644,375 $16,562
At May 31, 1997, the Emerging Markets Bond Portfolio had outstanding
written options as follows:
Par Expiration Exercise Market
Call option Subject to Call Date Price Value
- ---------------------- ----------------- ------------ ---------- --------
Republic of Bulgaria
IAB PDI Euro 6.563%, '11 $3,000,000 6/97 $67.625 $49,155
Written option activity for the six months ended May 31, 1997 aggregated
the following:
Emerging Markets Bond Portfolio Call Options
- ------------------------------------- ------------------------
Number of Amount
Options of Premiums
----------- ------------
Options outstanding at
November 30, 1996 -- $ --
Options written 9 122,296
Options cancelled in closing
purchase transactions -- --
Options expired (3) (27,046)
Options exercised (3) (61,500)
----- ----------
Options outstanding at May 31, 1997 3 $ 33,750
===== ==========
4. FORWARD CURRENCY CONTRACTS
As of May 31, 1997, the International Portfolio had entered into the
following forward currency contracts which contractually obligate the Portfolio
to deliver currencies at specified dates:
In Net
Contracts Exchange Settlement Unrealized
to Deliver For Date Value Depreciation
- ----------------- ---------------- ------------ ------------ -------------
UK 4,200,000 US 6,808,200 8/1/97 $6,871,728 $ (63,528)
UK 4,300,000 US 7,030,930 8/1/97 7,035,340 (4,410)
FL 13,060,000 US 6,791,825 8/1/97 6,806,692 (14,867)
----------
$ (82,805)
==========
UK = British Pounds Sterling US = U.S. Dollar
FL = Dutch Florin
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.
36
<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
James D. Wehr, Senior Vice President
David L. Albrycht, 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
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
<PAGE>
[BACK COVER]
Phoenix Multi-Portfolio Fund --------------
PO Box 2200 BULK RATE MAIL
Enfield CT 06083-2200 U.S. POSTAGE
PAID
SPRINGFIELD, MA
PERMIT NO. 444
---------------
[LOGOTYPE] PHOENIX
DUFF & PHELPS
PDP 490A (7/97)
<PAGE>
[Logo] PHOENIX
DUFF & PHELPS
PHOENIX MULTI-PORTFOLIO FUND
DIVERSIFIED INCOME PORTFOLIO
SEMIANNUAL REPORT
MAY 31, 1997
<PAGE>
Diversified Income Portfolio
- --------------------------------------------------------------------------------
INVESTOR PROFILE
Phoenix Diversified Income Portfolio is designed for moderately risk-averse
investors seeking current income consistent with preservation of capital.
INVESTMENT ADVISER'S REPORT
For the six months ended May 31, 1997, the Portfolio earned 3.87%,
significantly outperforming its benchmark, the Lehman Brothers Aggregate Bond
Index,* which returned 0.93%. All performance figures assume reinvestment of
dividends and exclude the effect of sales charges.
Bond market returns have varied significantly by sector. Currently,
traditional bond sectors appear overpriced, while less traditional sectors offer
the best value. Performance benefited from our focus on identifying sectors we
consider inefficiently priced at recent levels.
As yield spreads narrowed, we replaced our corporate high-yield holdings
with emerging-market debt instruments, focusing on Argentina, Brazil and Russia.
Commercial mortgages represent our largest weighting in the Portfolio. Positive
real estate market fundamentals and a growing institutional investor base have
created good values in this sector relative to other areas of the market.
OUTLOOK
Looking ahead to the next six months, the wide dispersion among sector
returns that was evident over the last six months is likely to continue. Sector
selection remains critical. We expect to maintain the Portfolio's overweighted
positions in the emerging markets and commercial mortgage sectors because of
their above-average return potential.
Our emphasis in the emerging-markets area is on countries that are
reforming their political systems towards democracy from socialism and moving
their economies toward capitalism from central planning. Argentina, Brazil and
Russia continue to have very attractive valuations.
High current yields on commercial mortgage-backed securities coupled with
limited supply, the prospect for credit upgrades and a growing investor base
support their continued attractiveness. We will continue to focus on
investment-grade issues with multiple-property collateral to take advantage of
near-term opportunities.
* The Lehman Brothers Aggregate Bond Index is an unmanaged, commonly used
measure of total return bond performance.
<PAGE>
Diversified Income Portfolio
- --------------------------------------------------------------------------------
INVESTMENTS AT MAY 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
MOODY'S PAR
BOND VALUE
RATING (000) VALUE
------- ----- -----
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES 7.7%
U.S. Treasury Bonds 6.1%
U.S. Treasury Bonds 6.50%, '26 Aaa $ 50 $ 47,156
U.S. Treasury Bonds 6.625%, '27 Aaa 360 346,725
---------
393,881
---------
U.S. Treasury Notes 1.6%
U.S. Treasury Notes 6.375%, '00 Aaa 100 100,031
---------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES
(Identified cost $493,764) 493,912
---------
NON-CONVERTIBLE BONDS 50.4%
Asset-Backed Securities 7.8%
Airplanes Pass Through Trust 1C 8.15%, '19 Baa 100 102,848
Green Tree Financial Corp. 95-8, A2 6.15%, '26 Aaa 198 198,393
Green Tree Financial Corp. 97-3, A6 7.32%, '28 Aaa 200 200,687
---------
501,928
---------
Auto & Truck Parts 2.0%
Titan Wheel International, Inc. 8.75%, '07 BB- (b) 125 128,750
---------
Banks 0.8%
Wachovia Capital Trust II 6.316%, '27 (c) Aa 50 48,925
---------
Building & Materials 1.3%
Neenah Corp. 144A 11.125%, '07 (d) B 80 85,000
---------
Industrial 2.0%
Ryder Trucks, Inc. 10%, '06 NR 125 128,438
---------
Leasing/Rental 2.0%
Williams Scotsman, Inc. 144A 9.875%, '07 (d) B- (b) 125 126,250
---------
Non-Agency Mortgage-Backed Securities 26.8%
G.E. Capital Mortgage Services, Inc. 96-8, 2A5 7.50%, '26 AAA (b) 223 218,543
Lehman Structured Securities Corp. 96-1, E1 7.995%, '26 BBB (b) 242 246,243
Mortgage Capital Funding, Inc. 96-MC2, D 7.257%, '06 Baa 100 97,906
Norwest Asset Securities Corp. 96-3, B2 7.25%, '26 BBB (b) 149 141,053
Residential Asset Securitization Trust 96-A8, A1 8%, '26 AAA (b) 193 195,306
Resolution Trust Corp. 92-C3, B 9.05%, '23 AA (b) 173 176,126
Resolution Trust Corp. 93-C1, B 8.75%, '24 Aa 200 199,937
Resolution Trust Corp. 95-1, B2 7.50%, '28 Aa 98 98,315
Resolution Trust Corp. 95-2, C1 7.45%, '29 Baa 114 112,995
Structured Asset Securities Corp. 93-C1, B 6.60%, '24 A+ (b) 250 237,598
---------
1,724,022
---------
Oil 1.1%
Lomak Petroleum, Inc. 8.75%, '07 B 75 74,250
---------
See Notes to Financial Statements
2
<PAGE>
Diversified Income Portfolio
- --------------------------------------------------------------------------------
INVESTMENTS AT MAY 31, 1997
(Unaudited)
MOODY'S PAR
BOND VALUE
RATING (000) VALUE
------- ----- -----
Paper & Forest Products 1.9%
Buckeye Cellulose Corp. 8.50%, '05 Ba $125 $ 123,125
---------
Publishing, Broadcasting, Printing & Cable 4.7%
Comcast Cellular 144A 9.50%, '07 (d) Ba 100 100,250
Hollinger International Publishing, Inc. 9.25%, '07 BB- (b) 200 202,500
---------
302,750
---------
TOTAL NON-CONVERTIBLE BONDS
(Identified cost $3,229,028) 3,243,438
---------
FOREIGN GOVERNMENT SECURITIES 22.4%
Argentina 4.6%
Republic of Argentina Bearer FRB 6.75%, '05 (c) BB (b) 315 294,168
---------
Brazil 3.5%
Republic of Brazil C Bond, PIK interest capitalization,
8%, '14 (c) BB- (b) 280 223,352
---------
Bulgaria 2.6%
Republic of Bulgaria IAB PDI Euro 6.563%, '11 (c) B 250 170,781
---------
Ecuador 2.7%
Ecuador Bearer PDI Euro, PIK interest capitalization,
6.438%, '15 (c) NR 269 174,812
---------
Mexico 2.1%
United Mexican States Global Bond 11.375%, '16 Ba 125 137,266
---------
Russia 3.4%
Vnesheconombank Loans Yankee (e) NR 250 216,250
---------
Venezuela 3.5%
Republic of Venezuela DCB Euro 6.50%, '07 (c) Ba 250 228,437
---------
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified cost $1,381,611) 1,445,066
---------
FOREIGN NON-CONVERTIBLE BONDS 2.9%
Indonesia 1.5%
Asia Pulp & Paper Co. Yankee 144A 12%, '04 (c) (d) B 100 100,000
---------
Mexico 1.4%
Grupo Televisa SA 0%, '08 (c) Ba 125 88,438
---------
TOTAL FOREIGN NON-CONVERTIBLE BONDS
(Identified cost $180,983) 188,438
---------
MUNICIPAL BONDS 8.9%
California 4.1%
Kern County Pension Obligation Taxable 7.26%, '14 Aaa 150 143,918
Orange County Pension A Taxable 7.67%, '09 Aaa 120 123,134
---------
267,052
---------
See Notes to Financial Statements 3
<PAGE>
Diversified Income Portfolio
- --------------------------------------------------------------------------------
INVESTMENTS AT MAY 31, 1997
(Unaudited)
MOODY'S PAR
BOND VALUE
RATING (000) VALUE
------- ----- -----
Florida 2.0%
University of Miami Exchangeable Revenue A Taxable 7.40%, '11 Aaa $ 85 $ 84,339
University of Miami Exchangeable Revenue A Taxable 7.65%, '20 Aaa 45 43,791
---------
128,130
---------
Pennsylvania 2.8%
Pennsylvania Economic Development Financial Authority
9.50%, '12 NR 200 178,582
---------
TOTAL MUNICIPAL BONDS
(Identified cost $608,768) 573,764
---------
SHARES
PREFERRED STOCKS 5.9%
REITS 5.9%
Home Ownership Funding 2 Step-down Pfd. 144A 13.338% (d) 250 247,400
Marquette Real Estate Fund Step-down Pfd. 144A 13.701% (d) 134 132,645
---------
380,045
---------
TOTAL PREFERRED STOCKS
(Identified cost $382,129) 380,045
---------
TOTAL LONG-TERM INVESTMENTS 98.2%
(Identified cost $6,276,283) 6,324,663
---------
STANDARD PAR
& POOR'S VALUE
RATING (000)
-------- -----
SHORT-TERM OBLIGATIONS 2.9%
Commercial Paper 2.9%
Goldman Sachs & Co. 5.625%, 6-2-97 A-1+ $ 185 184,971
----------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $184,971) 184,971
----------
TOTAL INVESTMENTS 101.1%
(Identified cost $6,461,254) 6,509,634(a)
Cash and receivables, less liabilities (1.1)% (67,795)
-----------
NET ASSETS 100.0% $ 6,441,839
-----------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $111,827 and gross depreciation
of $65,814. At May 31, 1997, the aggregate cost of securities for federal income
tax purposes was $6,463,621.
(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 May 31, 1997, these securities
amounted to a value of $791,545 or 12.3% of net assets.
(e) Non-income producing.
See Notes to Financial Statements 4
<PAGE>
Diversified Income Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1997
(Unaudited)
Assets
Investment securities at value
(Identified cost $6,461,254) $6,509,634
Cash 3,421
Receivables
Investment securities sold 134,896
Interest and dividends 76,653
Receivable from adviser 33,098
----------
Total assets 6,757,702
----------
Liabilities
Payables
Investment securities purchased 276,333
Trustees' fee 7,272
Financial agent fee 5,945
Transfer agent fee 2,898
Accrued expenses 23,415
----------
Total liabilities 315,863
----------
Net Assets $6,441,839
==========
Net Assets Consist of:
Capital paid in on shares of beneficial
interest $6,265,995
Undistributed net investment loss (109)
Accumulated net realized gain 127,573
Net unrealized appreciation 48,380
----------
Net Assets $6,441,839
==========
Shares of beneficial interest outstanding,
$1 par value, unlimited authorization 650,189
Net asset value and offering price per share $9.91
See Notes to Financial Statements 5
<PAGE>
Diversified Income Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
MAY 31, 1997
(Unaudited)
Investment Income
Interest $240,304
Dividends 2,979
--------
Total investment income 243,283
--------
Expenses
Investment advisory fee 15,111
Financial agent fee 29,110
Professional 11,950
Trustees 10,908
Transfer agent 10,532
Registration 10,194
Custodian 2,840
Printing 767
Miscellaneous 303
--------
Total expenses 91,715
Less expenses borne by investment adviser (72,071)
--------
Net expenses 19,644
--------
Net investment income 223,639
--------
Net Realized and Unrealized Gain (Loss)
on Investments
Net realized gain on securities 132,759
Net change in unrealized appreciation
(depreciation) on investments (123,655)
--------
Net gain on investments 9,104
--------
Net increase in net assets resulting from
operations $232,743
========
See Notes to Financial Statements 6
<PAGE>
Diversified Income Portfolio
- ----------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
May 31, 1997 Year Ended
(Unaudited) November 30, 1996
------------ -----------------
<S> <C> <C>
From Operations
Net investment income $ 223,639 $ 442,214
Net realized gain 132,759 254,797
Net change in unrealized appreciation (depreciation) (123,655) 100,101
---------- -----------
Increase in net assets resulting from operations 232,743 797,112
---------- -----------
From Distributions to Shareholders
Net investment income (227,666) (451,539)
Net realized gains (72,586) -
---------- -----------
Decrease in net assets from distributions to shareholders (300,252) (451,539)
---------- -----------
From Share Transactions
Proceeds from sales of shares (24,967 and 0 shares,
respectively) 242,413 -
Net asset value of shares issued from reinvestment
of distributions (30,630 and 47,353 shares,
respectively) 300,253 451,539
Cost of shares repurchased
(0 and 1 shares, respectively) - (5)
---------- -----------
Increase in net assets from share transactions 542,666 451,534
---------- -----------
Net increase in net assets 475,157 797,107
Net Assets
Beginning of period 5,966,682 5,169,575
---------- -----------
End of period (including undistributed net investment
income (loss) of ($109) and $3,918, respectively) $6,441,839 $5,966,682
========== ===========
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Diversified Income Portfolio
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Six Months From
Ended Year Ended November 30, Inception
May 31, 1997 4/1/93 to
(Unaudited) 1996 1995 1994 11/30/93
------------ ---- ---- ---- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.03 $ 9.45 $ 8.97 $ 10.12 $ 10.00
Income from investment operations
Net investment income 0.36(1) 0.78(1) 0.91(1) 0.63(1) 0.40(1)
Net realized and unrealized gain (loss) 0.01 0.59 0.51 (1.13) 0.12
--------- ------- ------- -------- -------
Total from investment operations 0.37 1.37 1.42 (0.50) 0.52
--------- ------- ------- -------- -------
Less distributions
Dividends from net investment income (0.37) (0.79) (0.94) (0.59) (0.40)
Dividends from net realized gains (0.12) -- -- (0.06) --
--------- ------- ------- -------- -------
Total distributions (0.49) (0.79) (0.94) (0.65) (0.40)
--------- ------- ------- -------- -------
Change in net asset value (0.12) 0.58 0.48 (1.15 0.12
--------- ------- ------- -------- -------
Net asset value, end of period $ 9.91 $ 10.03 $ 9.45 $ 8.97 $ 10.12
========= ======= ======= ======== =======
Total return 3.87%(3) 15.32% 16.65% (5.26)% 5.35%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $6,442 $5,967 $5,170 $ 1,780 $ 1,989
Ratio to average net assets of:
Operating expenses 0.65%(2) 0.65% 0.65% 0.65% 0.65%(2)
Net investment income 7.40%(2) 8.11% 7.60% 6.64% 6.13%(2)
Portfolio turnover 105%(3) 231% 618% 124% 183%(2)
</TABLE>
(1) Includes reimbursement of operating expenses by investment adviser of $0.12,
$0.15, $0.40, $0.34 and $0.35, respectively.
(2) Annualized
(3) Not annualized
See Notes to Financial Statements 8
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
DIVERSIFIED INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
May 31, 1997 (Unaudited)
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, six Portfolios are offered for sale: Diversified Income Portfolio,
Tax-Exempt Bond Portfolio, International Portfolio, Mid Cap Portfolio, Emerging
Markets Bond Portfolio and Real Estate Securities Portfolio. Effective April 4,
1997, and until otherwise determined, the Endowment Equity Portfolio, a seventh
Portfolio, was liquidated and is not available for sale. 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. 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 or, in the case of certain foreign securities, as soon as the Portfolio is
notified. 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. Loan agreements:
The Portfolio 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 Portfolio'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 Portfolio 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 Portfolio generally has no right to enforce compliance with the
terms of the loan agreement with the borrower. As a result, the Portfolio may be
subject to the credit risk of both the borrower and the lender that is selling
the loan agreement. When the Portfolio 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.
D. Security lending:
The Portfolio loans securities to qualified brokers through an agreement
with State Street Bank & Trust (the Custodian). Under the terms of the
agreement, the Portfolio 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 Portfolio 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 May 31, 1997, the Diversified Income Portfolio had no security
loans outstanding.
9
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
DIVERSIFIED INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
May 31, 1997) (Unaudited) (Continued)
E. 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.
F. 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.
G. 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"), received a fee for bookkeeping, administration,
and pricing services at an annual rate of 0.03% of the average daily net assets
of each Portfolio through December 31, 1996, and starting on January 1, 1997, at
an annual rate of 0.05% of average daily net assets up to $100 million, 0.04% of
average daily net assets of $100 million to $300 million, 0.03% of average daily
net assets of $300 million through $500 million, 0.015% of average daily net
assets greater than $500 million; a minimum fee may apply.
PEPCO serves as the Trust's Transfer Agent with State Street Bank and Trust
Company as sub-transfer agent. For the six months ended May 31, 1997, transfer
agent fees were $10,532 which were all paid to State Street.
As of May 31, 1997, PHL owns 625,057 shares with a value of $6,194,316.
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the six months ended May 31, 1997
(excluding U.S. Government and agency securities and short-term securities) were
$4,758,909 and $4,726,444, respectively.
Purchases and sales of U.S. Government and agency securities during the six
months ended May 31, 1997 were $1,896,833 and $1,576,957, respectively.
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.
10
<PAGE>
PHOENIX DIVERSIFIED INCOME PORTFOLIO
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
James D. Wehr, Senior Vice President
David L. Albrycht, Vice President
Matthew 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
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Investment Adviser
Phoenix Investment Counsel, Inc.
56 Prospect Street
Hartford, CT 06115-0480
Principal Underwriter
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P. O. Box 2200
Enfield, CT 06083-2200
Custodian
State Street Bank and Trust Company
P. O. Box 351
Boston, MA 02101
Transfer Agent
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P. O. Box 2200
Enfield, CT 06083-2200
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 031
<NAME> PHOENIX INTERNATIONAL PORTFOLIO CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1997
<PERIOD-START> DEC-01-1996
<PERIOD-END> MAY-31-1997
<INVESTMENTS-AT-COST> 128427
<INVESTMENTS-AT-VALUE> 149352
<RECEIVABLES> 1082
<ASSETS-OTHER> 1169
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 151603
<PAYABLE-FOR-SECURITIES> 5817
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1303
<TOTAL-LIABILITIES> 7120
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 112960
<SHARES-COMMON-STOCK> 9521
<SHARES-COMMON-PRIOR> 9362
<ACCUMULATED-NII-CURRENT> 245
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 11095
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 20183
<NET-ASSETS> 144483
<DIVIDEND-INCOME> 1073
<INTEREST-INCOME> 497
<OTHER-INCOME> 0
<EXPENSES-NET> (1116)
<NET-INVESTMENT-INCOME> 454
<REALIZED-GAINS-CURRENT> 10446
<APPREC-INCREASE-CURRENT> 1223
<NET-CHANGE-FROM-OPS> 12123
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2315)
<DISTRIBUTIONS-OF-GAINS> (11977)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2442
<NUMBER-OF-SHARES-REDEEMED> (3277)
<SHARES-REINVESTED> 994
<NET-CHANGE-IN-ASSETS> (1906)
<ACCUMULATED-NII-PRIOR> 2213
<ACCUMULATED-GAINS-PRIOR> 12614
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 513
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1116
<AVERAGE-NET-ASSETS> 137049
<PER-SHARE-NAV-BEGIN> 14.48
<PER-SHARE-NII> 0.05
<PER-SHARE-GAIN-APPREC> 1.10
<PER-SHARE-DIVIDEND> (0.26)
<PER-SHARE-DISTRIBUTIONS> (1.34)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 14.03
<EXPENSE-RATIO> 1.59
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 032
<NAME> PHOENIX INTERNATIONAL PORTFOLIO CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1997
<PERIOD-START> DEC-01-1996
<PERIOD-END> MAY-31-1997
<INVESTMENTS-AT-COST> 128427
<INVESTMENTS-AT-VALUE> 149352
<RECEIVABLES> 1082
<ASSETS-OTHER> 1169
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 151603
<PAYABLE-FOR-SECURITIES> 5817
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1303
<TOTAL-LIABILITIES> 7120
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 112960
<SHARES-COMMON-STOCK> 790
<SHARES-COMMON-PRIOR> 489
<ACCUMULATED-NII-CURRENT> 245
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 11095
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 20183
<NET-ASSETS> 144483
<DIVIDEND-INCOME> 1073
<INTEREST-INCOME> 497
<OTHER-INCOME> 0
<EXPENSES-NET> (1116)
<NET-INVESTMENT-INCOME> 454
<REALIZED-GAINS-CURRENT> 10446
<APPREC-INCREASE-CURRENT> 1223
<NET-CHANGE-FROM-OPS> 12123
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (106)
<DISTRIBUTIONS-OF-GAINS> (656)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 373
<NUMBER-OF-SHARES-REDEEMED> (127)
<SHARES-REINVESTED> 55
<NET-CHANGE-IN-ASSETS> 3910
<ACCUMULATED-NII-PRIOR> 2213
<ACCUMULATED-GAINS-PRIOR> 12614
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 513
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1116
<AVERAGE-NET-ASSETS> 137049
<PER-SHARE-NAV-BEGIN> 14.22
<PER-SHARE-NII> 0.00
<PER-SHARE-GAIN-APPREC> 1.08
<PER-SHARE-DIVIDEND> (0.21)
<PER-SHARE-DISTRIBUTIONS> (1.34)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 13.75
<EXPENSE-RATIO> 2.34
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 011
<NAME> PHOENIX TAX EXEMPT BOND PORTFOLIO CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1997
<PERIOD-START> DEC-01-1996
<PERIOD-END> MAY-31-1997
<INVESTMENTS-AT-COST> 126558
<INVESTMENTS-AT-VALUE> 130396
<RECEIVABLES> 2505
<ASSETS-OTHER> 103
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 133004
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 310
<TOTAL-LIABILITIES> 310
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 128709
<SHARES-COMMON-STOCK> 11651
<SHARES-COMMON-PRIOR> 12111
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (139)
<ACCUMULATED-NET-GAINS> 270
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3854
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<TABLE> <S> <C>
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<NUMBER> 012
<NAME> PHOENIX TAX EXEMPT BOND PORTFOLIO CLASS B
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<S> <C>
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</TABLE>
<TABLE> <S> <C>
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<SERIES>
<NUMBER> 021
<NAME> PHOENIX MID CAP PORTFOLIO CLASS A
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<S> <C>
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</TABLE>
<TABLE> <S> <C>
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<SERIES>
<NUMBER> 022
<NAME> PHOENIX MID CAP PORTFOLIO CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1997
<PERIOD-START> DEC-01-1996
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<NET-INVESTMENT-INCOME> 420
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<NET-CHANGE-IN-ASSETS> (1015)
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</TABLE>
<TABLE> <S> <C>
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<SERIES>
<NUMBER> 071
<NAME> PHOENIX EMERGING MARKETS BOND PORTFOLIO CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
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</TABLE>
<TABLE> <S> <C>
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<SERIES>
<NUMBER> 072
<NAME> PHOENIX EMERGING MARKETS BOND PORTFOLIO CLASS B
<MULTIPLIER> 1000
<S> <C>
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</TABLE>
<TABLE> <S> <C>
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<SERIES>
<NUMBER> 061
<NAME> REAL ESTATE SECURITIES PORTFOLIO CLASS A
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<S> <C>
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</TABLE>
<TABLE> <S> <C>
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<SERIES>
<NUMBER> 062
<NAME> REAL ESTATE SECURITIES PORTFOLIO CLASS B
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<NUMBER> 05
<NAME> PHOENIX DIVERSIFIED INCOME PORTFOLIO
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