Phoenix Investment Partners
ANNUAL REPORT
NOVEMBER 30, 1999
[GRAPHIC OMITTED] Phoenix-Aberdeen
ABERDEEN International Fund
[GRAPHIC OMITTED] Phoenix-Duff & Phelps
DUFF&PHELPS Real Estate
Securities Fund
[GRAPHIC OMITTED] Phoenix-Goodwin
GOODWIN Emerging Markets
Bond Fund
Phoenix-Goodwin
Tax-Exempt Bond
Fund
[GRAPHIC OMITTED]
(BULLET)SENECA(BULLET) Phoenix-Seneca
Mid Cap Fund
[GRAPHIC OMITTED]
PHOENIX INVESTMENT PARTNERS
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[GRAPHIC OMITTED]
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
We are pleased to provide this annual report for the Phoenix
Multi-Portfolio Fund for the 12 months ended November 30, 1999. On the following
pages, your Funds' portfolio managers review market events over the last year
and discuss their investment strategy. We hope you find their comments
informative.
As the new year begins, this may be a good time to review a few "basics of
investing." Investors' biggest challenge is adopting an investing discipline and
committing to it. As always, your financial advisor can provide the insight and
wisdom to help keep you on track to meet your investment goals.
REMAIN FOCUSED ON YOUR LONG-TERM INVESTMENT STRATEGY. Redeeming an
investment when the market drops or a fund's share price falls can work against
you over time. You could miss out on opportunities for your investment to grow
when the market or the fund's share price begins to move up. And over time, that
could make a big difference in how successful you are in achieving your
financial goals.
DIVERSIFY YOUR PORTFOLIO. Spreading your investments among different asset
classes and investment styles helps reduce risk. If one type of investment
doesn't perform well over a certain time period, it may be offset by the good
results of another investment.
TAKE ADVANTAGE OF DOLLAR-COST AVERAGING. You can make market fluctuations
work to your advantage by investing a set amount of money at regular intervals.
This is called dollar-cost averaging, and it means that when prices are low you
will be buying more units and when prices are high, you'll buy less. Periodic
investment plans do not assure a profit or protect against a loss in declining
markets. This type of plan involves continuous investments in securities
regardless of fluctuating price levels. Investors should consider their
financial ability to continue purchases through periods of low price levels.
If you have any questions, please contact your financial advisor or call us
at 1-800-243-1574, between 8:00 a.m. and 6:00 p.m. Eastern Time, Monday through
Friday.
Sincerely,
/S/PHILIP R. MCLOUGHLIN
Philip R. McLoughlin
DECEMBER 8, 1999
Mutual funds are not insured by the FDIC; are not deposits or other obligations
of a bank and are not guaranteed by a bank; and are subject to investment risks,
including possible loss of the principal invested.
1
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TABLE OF CONTENTS
Phoenix-Aberdeen International Fund........................................... 3
Phoenix-Duff & Phelps Real Estate Securities Fund.............................14
Phoenix-Goodwin Emerging Markets Bond Fund....................................23
Phoenix-Goodwin Tax-Exempt Bond Fund..........................................33
Phoenix-Seneca Mid Cap Fund...................................................42
Notes to Financial Statements.................................................50
2
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PHOENIX-ABERDEEN INTERNATIONAL FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Fund is appropriate for investors seeking long-term capital appreciation
by investing primarily in an internationally diversified portfolio of equity
securities. The Fund essentially focuses on quality companies with strong
management, solid growth prospects and attractive relative valuations. Investors
should note that foreign investments pose added risks such as currency
fluctuation, less public disclosure, as well as economic and political risks.
Q: HOW DID THE FUND PERFORM DURING THE PAST YEAR?
A: For the year ended November 30, 1999 Class A shares returned 19.22% and Class
B shares returned 18.45% compared with a return of 21.43% for the Fund's
benchmark index, the MSCI EAFE Index 1. All performance figures assume
reinvestment of distributions and exclude the effect of sales charges.
Q: WHAT FACTORS MOST AFFECTED PERFORMANCE?
A: All stock markets have traveled a considerable distance since the dark days
of October 1998 and indeed most are substantially higher than at the previous
peaks a year ago. In Western equity markets, much of Europe has made significant
headway but for U.S. investors these returns have been diminished by the
weakness of the euro against a strong dollar.
For the greater part of this year, Far Eastern markets have been busy
garnering new/reconstructed converts, with foreign money the sole source of
support for Japan and an important one for Asia Pacific. The restructuring story
continues to drive Japan forward, and unlike Europe, the strength of the yen has
boosted returns for U.S. investors. Emerging markets have seen their customary
volatility bottom, in general, and have benefited from the strenthening global
recovery, with industrial production now accelerating virtually everywhere. Y2K
risks and rising U.S. interest rates have put upward pressure on risk premiums,
while political developments in Brazil have not helped but further progress is
still expected.
The past month has witnessed some truly spectacular stock market
performances. Many commentators had expected some fireworks in the run-up to the
end of the year, but not all one way. In all major markets the technology/
telecommunmications sectors led the surge, indicating once again the trend
towards globalization. Momentum buying, merger and acquisition activity and
probably a genuine desire by many investors to be fully invested in the fastest
growing sectors of the economy all combined to produce such a move on massive
volumes. The scale of some of the advances in the UK and Europe as well as the
U.S., however, defies "traditional" rational judgment. The footprint of U.S.
investors keen to build up UK and European technology weightings is as obvious
as it was when cyclicals surged so massively earlier in the year. For many
companies, absolutely nothing has changed, forecasts are the same, and their
prospects ar the same, yet share prices of some very large companies have
rocketed.
1 THE MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) EAFE INDEX IS AN UNMANAGED,
COMMONLY USED MEASURE OF FOREIGN STOCK MARKET PERFORMANCE. THE INDEX IS NOT
AVAILABLE FOR DIRECT INVESTMENT.
3
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PHOENIX-ABERDEEN INTERNATIONAL FUND (CONTINUED)
Q: WHAT CHANGES HAVE BEEN MADE TO THE FUND'S ASSET ALLOCATION?
A: During the year we reduced our overweighting in Continental Europe and the
UK, while taking a 5% weighting in Canada and doubling our exposure to the Far
East excluding Japan. These changes have proved beneficial as our Canadian
holdings have outperformed, while Europe has suffered due to the weak currency.
Q: WHAT IS THE OUTLOOK FOR INTERNATIONAL MARKETS?
A: In Europe growth continues to accelerate, with France in the vanguard and
Germany now in a "clear upswing," according to the Bundesbank. With monetary
policy still accommodative, overall euro-zone growth could approach 3% next
year. Recent data releases in the UK, such as retail sales and the labor
reports, suggest annualized GDP growth of around 4.0% can be sustained in the
coming quarters. Japan's latest stimulus package, together with some pickup in
consumer spending, should ensure positive growth figures for next year, even
though capital investment remains a drag for now. Elsewhere in the Far East,
booming export growth, accelerating capital investment, and private consumption
are ensuring extremely high comparative growth numbers.
Overall, for the first time in a decade, global economic performance is
converging, with current buoyant activity around the world being forecast to be
maintained for several years by most economic commentators. While Western
central banks have embarked on a first phase of monetary tightening, this has
only partly or fully reversed earlier easing. Thus, for the time being, monetary
conditions in general remain supportive of growth.
Despite growing commodity-related pressures, core inflation remains remarkably
subdued worldwide. UK inflation appears as remarkably well behaved as that of
the U.S. The UK's monetary policy committee is, however, likely to remain
pre-emptive and short circuit any sustained pickup in inflation. The
50-basis-point rate rise in November was intended to head off any inflationary
acceleration, and forecasts in general for next year remain below the euro-zone
upper limit of 2%.
Even though inflation figures may remain subdued, the November interest
rate increases in the UK and euro-zone are likely to be the opening salvo in a
move towards tighter monetary conditions next year. The financial backdrop
remains supportive of growth, and short and long rates are still low by historic
standards, while global equity markets are on the rise.
In general, most equity markets are still below our estimates of "fair
value" and, therefore, while having rallied hard in recent times, have not
discounted the progress that we expect for next year. The U.S. remains the key
risk. Bond yields look to be heading higher in the near term, but recent
developments in the UK gilt market are highly instructive for others when
shortages develop. Overall, we are reasonably positive about next year for the
international markets but would rather increase weightings in equities on any
potential setback.
DECEMBER 10, 1999
4
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Phoenix-Aberdeen International Fund
AVERAGE ANNUAL TOTAL RETURNS 1 PERIOD ENDING 11/30/99
INCEPTION INCEPTION
1 YEAR 5 YEARS 10 YEARS TO 11/30/99 DATE
------ ------- -------- ---------- ----------
Class A Shares at NAV 2 19.22% 15.06% 10.66% -- 11/1/89
Class A Shares at POP 3 13.55 13.95 10.12 -- 11/1/89
Class B Shares at NAV 2 18.45 14.20 -- 12.80% 7/15/94
Class B Shares with CDSC 4 14.66 14.20 -- 12.80 7/15/94
Class C Shares at NAV 2 -- -- -- 14.41 3/30/99
Class C Shares with CDSC 4 -- -- -- 13.41 3/30/99
MSCI EAFE Index 7 21.43 11.36 6.80 Note 5 Note 5
1 Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
2 "NAV" (Net Asset Value) total returns do not include the effect of any sales
charge.
3 "POP" (Public Offering Price) total returns include the effect of the maximum
front-end 4.75% sales charge.
4 CDSC (contingent deferred sales charge) is applied to redemptions of certain
classes of shares that do not have a sales charge applied at the time of
purchase. CDSC charges for B shares decline from 5% to 0% over a five year
period. CDSC charges for C shares are 1% in the first year and 0% thereafter.
5 Index performance is 10.14% for Class B (since 6/30/94) and 15.11% for Class
C (since 3/31/99), respectively.
6 This chart illustrates POP returns on Class A shares for ten years. Returns
on Class B and Class C shares will vary due to differing sales charges.
7 The MSCI EAFE Index is an unmanaged, commonly used measure of foreign stock
market performance. The index's performance does not reflect sales charges.
All returns represent past performance which may not be indicative of future
performance. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their original cost.
GROWTH OF $10,000 PERIODS ENDING 11/30
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
INTERNATIONAL FUND
Phoenix-Aberdeen
International MSCI
Fund Class A 6 EAFE 7
11/30/89 $ 9,525 $10,000
11/30/90 $ 9,454 $ 7,834
11/29/91 $10,236 $ 8,516
11/30/92 $ 9,221 $ 7,854
11/30/93 $11,485 $ 9,790
11/30/94 $12,998 $11,272
11/30/95 $13,533 $12,162
11/30/96 $16,109 $13,633
11/30/97 $17,431 $13,616
11/30/98 $21,992 $15,899
11/30/99 $26,218 $19,306
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
11/1/89 in Class A shares and reflects the maximum sales charge of 4.75% on the
initial investment. Performance assumes dividends and capital gains are
reinvested. The performance of other share classes will be greater or less than
that shown based on differences in inception dates, fees and sales charges.
COUNTRY WEIGHTINGS 11/30/99
As a percentage of net assets
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
United Kingdom 18%
Japan 18
France 11
Germany 7
Netherlands 6
Canada 5
Switzerland 5
Other 30
5
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Phoenix-Aberdeen International Fund
TEN LARGEST HOLDINGS AT NOVEMBER 30, 1999 (AS A PERCENTAGE OF TOTAL NET ASSETS)
1. Nortel Networks Corp. 2.8%
PROVIDES TELEPHONE, DATA, WIRELESS AND WIRELINE
PRODUCTS AND SERVICES FOR THE INTERNET
2. Swire Pacific Ltd. Class B 2.0%
DIVERSIFIED COMPANY WITH OPERATIONS PRIMARILY
IN HONG KONG, CHINA AND TAIWAN
3. Nokia Oyj Class A 1.8%
MANUFACTURES MOBILE PHONES AND OTHER TELECOM PRODUCTS
4. BP Amoco PLC 1.7%
LARGE OIL COMPANY BASED IN THE UK
5. NTT Mobile Communications Network, Inc. 1.4%
JAPANESE MOBILE PHONE COMPANY
6. British Telecommunications PLC 1.3%
UK PROVIDER OF TELEPHONE SERVICES
7. Vodafone Group PLC 1.2%
WORLDWIDE PROVIDER OF MOBILE TELECOMMUNICATIONS SERVICES
8. Total Fina SA Class B 1.2%
MAJOR OIL COMPANY WITH HEADQUARTERS IN FRANCE
9. Toronto Dominion Bank 1.2%
CANADIAN BANKING COMPANY
10. Telefonaktiebolaget LM Ericsson Class B 1.1%
SWEDISH MOBILE TELEPHONE MANUFACTURER
INVESTMENTS AT NOVEMBER 30, 1999
SHARES VALUE
---------- -----------
FOREIGN COMMON STOCKS--96.6%
ARGENTINA--0.1%
Perez Companc SA Sponsored ADR (Oil & Gas
(Exploration & Production)) .......................... 13,500 $ 143,119
AUSTRALIA--1.3%
Australian Gas Light Co., Ltd. (Natural Gas) ......... 200,000 1,113,463
QBE Insurance Group Ltd. (Insurance
(Property-Casualty)) ................................. 298,000 1,185,855
-----------
2,299,318
-----------
BRAZIL--0.6%
Tele Centro Sul Participacoes SA ADR
(Telecommunications (Long Distance)) ................. 4,500 307,125
Tele Norte Leste Participacoes SA ADR
(Telecommunications (Long Distance)) ................. 15,000 267,187
Tele Sudeste Celular Participacoes SA ADR
(Telecommunications (Cellular/Wireless)) ............. 13,000 267,312
Telesp Participacoes SA ADR (Telecommunications
(Long Distance)) ..................................... 15,500 279,000
-----------
1,120,624
-----------
CANADA--5.1%
Nortel Networks Corp. (Communications Equipment) ..... 67,000 4,958,000
Seagram Co., Ltd (The) (Entertainment). .............. 43,000 1,873,187
Toronto-Dominion Bank (The) (Banks (Money Center)) ... 88,000 2,123,000
-----------
8,954,187
-----------
DENMARK--1.0%
Danisco A/S (Foods)................................... 15,992 653,722
Tele Danmark A/S (Telephone).......................... 17,567 1,131,847
-----------
1,785,569
-----------
FINLAND--3.1%
Helsingin Puhelin Oyj (Telephone) .................... 17,157 1,140,161
Nokia Oyj Class A (Communications Equipment) ......... 21,891 3,099,072
SHARES VALUE
---------- -----------
FINLAND--CONTINUED
Stora Enso Oyj (Paper & Forest Products) ............. 46,044 $ 654,155
UPM-Kymmene Oyj (Paper & Forest Products) ............ 16,744 559,729
-----------
5,453,117
-----------
FRANCE--11.2%
Air Liquide (Chemicals (Specialty)).... .............. 4,063 596,465
Alcatel (Communications Equipment)..... .............. 7,826 1,516,880
Alstom (Engineering & Construction).... .............. 21,830 619,846
Axa (Insurance (Multi-Line))........... .............. 10,742 1,448,260
Canal Plus (Broadcasting (Television, Radio &
Cable)) .............................................. 7,041 582,047
Carrefour SA (Retail (Food Chains)).... .............. 6,994 1,218,295
Castorama Dubois (Retail (Building Supplies)) ........ 4,795 1,245,630
Christian Dior SA (Beverages (Alcoholic)) ............ 4,669 839,157
Coflexip SA (Metal Fabricators) ...................... 13,150 1,085,726
Compagnie de Saint Gobain (Manufacturing
(Diversified)) ....................................... 2,156 366,873
Dexia France (Banks (Major Regional)) ................ 4,909 808,644
Lafarge SA (Construction (Cement & Aggregates)) ...... 13,712 1,292,973*
Pechiney SA Class A (Containers & Packaging (Paper)) . 16,965 983,060
Renault SA (Automobiles) ............................. 14,102 619,508
Sanofi-Synthelabo SA (Health Care (Diversified))(b) .. 15,931 656,065
Schneider SA (Electrical Equipment) .................. 10,560 712,393
Societe Generale Class A (Banks (Major Regional)) .... 3,805 819,878
Suez Lyonnaise des Eaux (Engineering &
Construction) ........................................ 2,859 421,152
Total Fina SA Class B (Oil & Gas (Refining &
Marketing)) .......................................... 16,147 2,147,709
Valeo SA (Auto Parts & Equipment) .................... 11,762 787,560
Vivendi (Manufacturing (Diversified)) ................ 11,951 956,648
-----------
19,724,769
-----------
See Notes to Financial Statements
6
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Phoenix-Aberdeen International Fund
SHARES VALUE
---------- -----------
GERMANY--7.2%
Allianz AG Vinkulierte Registered Shares
(Insurance (Multi-Line)) ............................ 3,412 $ 998,871
BASF AG (Chemicals (Diversified)) ................... 24,251 1,122,008
Bayer AG (Chemicals (Diversified)) .................. 15,779 667,282
Bayerische Vereinsbank AG (Banks
(Major Regional)) ................................... 15,636 969,811
Bewag AG (Electric Companies) ....................... 25,268 287,495
DaimlerChrysler AG (Automoblies) .................... 15,969 1,086,939
Deutsche Bank AG (Banks (Major Regional)) ........... 12,935 852,426
Deutsche Lufthansa AG (Airlines) .................... 61,306 1,349,379
Deutsche Telekom AG (Telephone) ..................... 8,080 466,173
Mannesmann AG (Manufacturing (Diversified)) ......... 7,961 1,654,467
Metro AG (Retail (Speciality)) ...................... 18,105 969,820
Muenchener Rueckversicherungs-Gesellschaft AG
(Insurance (Multi-Line)) ............................ 5,769 1,202,407
RWE AG (Manufacturing (Diversified)) ................ 18,730 714,756
Volkswagen AG (Automobiles) ......................... 5,719 268,341
-----------
12,610,175
-----------
GREECE--0.2%
Hellenic Telecommunications Organization SA
(Telephone) ......................................... 18,700 400,432
HONG KONG--2.0%
Swire Pacific Ltd. Class B (Manufacturing
Diversified)) ....................................... 4,150,000 3,526,717
HUNGARY--0.3%
Magyar Tavkozlesi Rt Sponsored ADR
(Telecommunications (Long Distance)) ................ 17,300 522,244
INDIA--0.8%
BSES Ltd. GDR (Electric Companies)(b) ............... 30,000 393,000
Mahanagar Telephone Nigam Ltd. Sponsored GDR
(Telecommunications (Long Distance)) ................ 115,000 1,020,625
-----------
1,413,625
-----------
INDONESIA--0.4%
PT Indosat (Telecommunications (Long Distance)) ..... 110,000 153,864
PT Indosat ADR (Telecommunications
(Long Distance)) .................................... 41,000 568,875
-----------
722,739
-----------
ISRAEL--0.2%
Bank Hapoalim Ltd. (Banks (Major Regional)) ......... 121,000 319,311
ITALY--2.4%
Assicurazioni Generali (Insurance (Life/Health)) .... 21,854 629,329
Banca Intesa SPA (Banks (Major Regional)) ........... 402,214 747,196
Beni Stabili SPA (Financial (Diversified))(b) ....... 59,900 21,049
Eni SPA (Oil (Domestic Integrated)) ................. 135,739 743,506
San Paolo-IMI SPA (Banks (Major Regional)) .......... 53,778 671,440
SHARES VALUE
---------- -----------
ITALY--CONTINUED
Telecom Italia Mobile SPA (Telephone).. ............. 56,119 $ 440,743
Telecom Italia SPA (Telephone)......... ............. 80,173 883,133
-----------
4,136,396
-----------
JAPAN--17.6%
Asahi Bank Ltd. (The) (Banks (Major Regional)) ...... 190,000 1,329,451
Canon, Inc. (Office Equipment & Supplies) ........... 48,000 1,409,208
Circle K Japan Co., Ltd. (Retail (Food Chains)) ..... 34,000 1,497,284
Dai Nippon Printing Co., Ltd. (Specialty Printing) .. 85,000 1,476,488
Fuji Photo Film Co. (Photography/Imaging) ........... 39,000 1,583,891
Fujitsu Ltd. (Computers (Hardware)).... ............. 26,000 921,074
Hitachi Credit Corp. (Consumer Finance) ............. 63,000 1,436,512
Ito-Yokado Co., Ltd. (Retail (Food Chains)) ......... 16,000 1,722,366
Kao Corp. (Household Products (Non-Durable)) ........ 49,000 1,452,953
Mabuchi Motor Co., Ltd. (Electrical Equipment) ...... 9,000 1,127,367
NTT Mobile Communications Network, Inc.
(Telecommunications (Cellular/Wireless)) ............ 70 2,452,414
Nikko Securities Co., Ltd. (The) (Investment
Banking/Brokerage) .................................. 130,000 1,615,697
Rinnai Corp. (Household Furnishings & Appliances)) .. 55,400 1,138,523
Rohm Co., Ltd. (Electronics (Semiconductors)) ....... 7,000 1,896,168
Sankyo Co., Ltd. (Health Care (Drugs-Major
Pharmaceuticals)) ................................... 60,000 1,473,797
Sanwa Bank Ltd. (The) (Banks (Major Regional)) ...... 110,000 1,334,833
Secom Co., Ltd. (Services (Commercial &
Consumer)) .......................................... 10,000 1,125,409
Sharp Corp. (Household Furnishings & Appliances) .... 94,000 1,917,991
Shin-Etsu Chemical Co., Ltd. (Chemicals (Speciality)) 35,000 1,380,339
Suzuki Motor Corp. (Automobiles)....... ............. 96,000 1,408,269
Yamato Transport Co. Ltd. (Air Freight) ............. 37,000 1,231,100
-----------
30,931,134
-----------
MALAYSIA--0.3%
Carlsberg Brewery Malaysia Berhad
(Beverages (Alcoholic)) ............................. 125,000 358,550
Malaysian Oxygen Berhad (Chemicals (Speciality)) .... 85,000 174,472
-----------
533,022
-----------
MEXICO--0.8%
Cemex SA de C.V. Sponsored ADR (Construction
(Cement & Aggregates))(b) ........................... 15,000 368,437
Coca-Cola Femsa SA Sponsored ADR (Beverages
(Non-Alcoholic)) .................................... 29,000 445,875
Grupo Televisa SA Sponsored GDR (Broadcasting
(Television, Radio & Cable))(b) ..................... 6,300 307,519
Telefonos de Mexico SA Sponsored ADR Class L
(Telecommunications (Long Distance)) ................ 4,000 370,250
-----------
1,492,081
-----------
NETHERLANDS--6.3%
ASM Lithography Holding NV (Equipment
(Semiconductor))(b) ................................. 8,747 849,899
Elsevier NV (Publishing)............... ............. 46,625 459,133
See Notes to Financial Statements
7
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Phoenix-Aberdeen International Fund
SHARES VALUE
---------- -----------
NETHERLANDS--CONTINUED
Equant NV (Services (Data Processing))(b) ........... 7,603 $ 734,915
Fortis (NL) NV (Financial (Diversified)) ............ 26,795 918,114
Heineken NV (Beverages (Alcoholic)).... ............. 14,275 689,919
IHC Caland NV (Oil & Gas (Drilling & Equipment)) .... 9,228 356,796
ING Groep NV (Financial (Diversified)). ............. 20,613 1,159,165
KPN NV (Telephone)..................... ............. 12,012 668,838
Koninklijke (Royal) Philips Electronics NV (Electronics
(Component Distributors)) ........................... 10,970 1,334,855
Royal Dutch Petroleum Co. (Oil (Domestic
Integrated)) ........................................ 16,281 957,851
STMicroelectronics Desighns NV (Electronics
(Semiconductors)) ................................... 9,395 1,277,060
Unilever NV - CVA (Foods) ........................... 16,534 910,639
United Pan-Europe Communications NV (Broadcasting
(Television, Radio & Cable))(b) ..................... 4,040 396,613
Wolters Klumer NV (Publishing) ...................... 10,098 304,518
-----------
11,018,315
-----------
NEW ZEALAND--0.2%
Telecom Corporation of New Zealand Ltd.
(Telephone) ......................................... 100,000 427,126
PHILIPPINES--0.5%
Ayala Land, Inc. (Financial (Diversified)) .......... 3,510,000 830,413
POLAND--0.2%
Elektrim Spolka Akcyjna SA (Distributors
(Food & Health))(b) ................................. 37,800 282,331
PORTUGAL--0.2%
Portugal Telecom SA (Telephone) ..................... 45,345 436,027
SINGAPORE--1.6%
Singapore Airlines (Airlines) ....................... 160,000 1,619,067
United Overseas Bank Ltd. (Banks (Major Regional)) .. 141,504 1,263,444
-----------
2,882,511
-----------
SOUTH AFRICA--0.6%
BOE Ltd. (Financial (Diversified)) .................. 222,320 176,416
De Beers (Metals Mining) ............................ 16,324 441,476
Metro Cash and Carry Ltd. (Retail (Specialty)) ...... 443,000 417,533
-----------
1,035,425
-----------
SOUTH KOREA--1.3%
Kookmin Bank (Banks (Major Regional)) ............... 33,013 549,623
Pohang Iron & Steel Co., Ltd. (Iron & Steel) ........ 12,700 1,740,551
-----------
2,290,174
-----------
SPAIN--2.8%
Argentaria, Caja Postal y Banco Hipotecario de
Espana SA (Banks (Major Regional)) .................. 27,292 623,795
Banco Popular Espanol SA (Banks (Major Regional)) ... 15,423 996,976
Banco Santander Central Hispano SA (Banks
(Major Regional)) ................................... 49,342 542,029
SHARES VALUE
---------- -----------
SPAIN--CONTINUED
Groupo Dragados SA (Engineering & Construction) ..... 31,611 $ 289,641
Iberdrola SA (Electric Companies)...... ............. 39,163 545,749
Repsol SA (Oil & Gas (Refining & Marketing)) ........ 33,903 740,762
Telefonica SA (Telephone)(b)........... ............. 54,753 1,140,090
Telefonica SA New Shares (Telephone)(b) ............. 1,095 18,247
-----------
4,897,289
-----------
SWEDEN--4.2%
ABB Ltd. (Electrical Equipment)(b)..... ............. 6,618 650,820
AstraZeneca Group PLC (Health Care (Drugs-Major
Pharmaceuticals)) ................................... 8,304 371,192
Electrolux AB (Household Furnishings & Appliances) .. 42,860 836,928
SKF AB (Metal Fabricators)............. ............. 16,160 360,229
SSAB Svenskt Stal AB Series A (Iron & Steel) ........ 58,408 748,905
Sandvik AB Class B (Machinery (Diversified)) ........ 15,068 428,056
Skandia Forsakrings AB (Insurance (Life/Health) ..... 53,330 1,276,627
Skandinaviska Enskilda Banken Class A (Banks
(Major Regional)) ................................... 75,303 717,505
Telefonaktiebolaget LM Ericsson Class B
(Communications Equipment) .......................... 40,624 1,971,218
-----------
7,361,480
-----------
SWITZERLAND--5.1%
Credit Suisse Group (Banks (Major Regional)) ........ 5,571 1,041,796
Nestle SA Registered (Foods)........... ............. 661 1,189,142
Novartis AG Registered Shares (Health Care
(Drugs-Major Pharmaceuticals)) ...................... 1,095 1,706,291
Roche Holding AG (Health Care (Drugs-Major
Pharmaceuticals)) ................................... 155 1,870,663
Swisscom AG (Telephone)................ ............. 1,095 371,681
Synthes-Stratec, Inc. (Health Care (Medical Products
& Supplies))(b) ..................................... 1,020 397,516
UBS AG (Banks (Major Regional))........ ............. 5,807 1,587,829
Zurich Allied AG (Financial (Diversified)) .......... 1,294 740,995
-----------
8,905,913
-----------
TAIWAN--0.2%
Standard Foods Taiwan Ltd. GDR (Foods)(b) ........... 54,837 301,603
THAILAND--0.2%
Bec World Public Co. Ltd. (Entertainment) ........... 55,000 338,505
TURKEY--0.3%
Haci Omer Sabanci Holding (Investment
Management) ......................................... 5,544,000 179,239
Yapi ve Kredi Bankasi AS (Banks (Major Regional)) ...17,600,000 322,724
-----------
501,963
-----------
UNITED KINGDOM--18.3%
3i Group PLC (Investment Banking/Brokerage) ......... 67,085 1,086,635
AstraZeneca Group PLC (Health Care (Drugs-Major
Pharmaceuticals)) ................................... 34,239 1,525,829
BG PLC (Natural Gas)................... ............. 81,302 426,672
BOC Group PLC (Chemicals (Specialty)).. ............. 21,297 438,585
See Notes to Financial Statements
8
<PAGE>
Phoenix-Aberdeen International Fund
SHARES VALUE
---------- -----------
UNITED KINGDOM--CONTINUED
BP Amoco PLC (Oil (Domestic Integrated)) ............ 289,644 $ 2,943,218
Bank of Scotland (Banks (Major Regional)) ........... 73,882 873,132
Barclays PLC (Banks (Major Regional)).. ............. 32,390 933,742
Bass PLC (Beverages (Alcoholic))....... ............. 40,758 458,954
Berkeley Group PLC (The) (Homebuilding) ............. 40,339 424,361
British Aerospace PLC (Aerospace/Defense) ........... 83,869 479,215
British American Tobacco PLC (Tobacco). ............. 56,845 357,171
British Telecommunications PLC (Telephone)..... ..... 112,208 2,249,128
Cable & Wireless PLC (Telephone) .................... 50,805 651,388
Colt Telecom Group PLC (Telephone)(b) ............... 10,700 403,385
Compass Group PLC (Services (Commercial &
Consumer)) .......................................... 24,852 300,824
Diageo PLC (Beverages (Alcoholic)) .................. 36,921 334,010
FirstGroup PLC (Services (Commercial &
Consumer)) .......................................... 99,803 432,364
Glaxo Wellcome PLC (Health Care (Drugs-Major
Pharmaceuticals) .................................... 63,369 1,895,438
Granada Group PLC (Restaurants) ..................... 44,347 363,755
HSBC Holdings PLC (Financial (Diversified)).... ..... 72,000 928,296
Hilton Group PLC (Gaming, Lottery & Pari-mutuel
Companies) .......................................... 117,902 378,385
Invensys Siebe PLC (Machinery (Diversified))... ..... 111,147 516,913
Kingfisher PLC (Retail (Speciality)) ................ 62,498 576,344
Legal & General Group PLC (Insurance (Multi-Line)) .. 257,622 707,798
Lloyds TSB Group PLC (Financial (Diversified)). ..... 104,525 1,335,988
Logica PLC (Services (Data Processing))........ ..... 46,943 1,132,715
National Westminster Bank PLC (Banks (Major
Regional)) .......................................... 47,573 1,091,847
Norwich Union PLC (Insurance (Life/Health)).... ..... 72,751 514,179
Orange PLC (Telecommunications
(Cellular/Wireless))(b) ............................. 7,131 215,568
PowerGen PLC (Electric Companies).................... 46,317 397,987
RMC Group PLC (Construction (Cement &
Aggregates)) ........................................ 35,643 439,392
Reuters Holdings Group PLC (Publishing)........ ..... 29,128 325,443
Rio Tinto PLC (Metals Mining) .. ........... 33,737 660,920
Royal & Sun Alliance Insurance Group PLC
(Insurance (Multi-Line)) ............................ 78,961 484,813
Schroders PLC (Investment Banking/Brokerage)... ..... 21,241 398,188
Serco Group PLC (Services (Commercial &
Consumer)) .......................................... 13,553 416,071
Shell Transport & Trading Co. PLC (Oil (Domestic
Integrated)) ........................................ 133,370 1,023,864
SmithKline Beecham PLC (Health Care (Drugs-Major
Pharmaceuticals)) ................................... 82,270 1,098,051
SHARES VALUE
---------- -----------
UNITED KINGDOM--CONTINUED
Smiths Industries PLC (Aerospace/Defense)...... ..... 20,452 $ 270,365
Thames Water PLC (Water Utilities) .. ........... 21,104 292,934
Vodafone Group PLC (Telecommunications
(Cellular/Wireless)) ................................ 459,019 2,158,528
Woolwich PLC (Consumer Finance) ..................... 55,069 317,507
-----------
32,259,902
-----------
- -----------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCK
(IDENTIFIED COST $143,872,870) 169,857,556
- -----------------------------------------------------------------------------
WARRANTS--0.0%
GERMANY--0.0%
Muenchener Rueckversicherungs-Gesellschaft AG
Warrants (Insurance (Multi-Line))(b) ................ 176 6,380
- -----------------------------------------------------------------------------
TOTAL WARRANTS
(IDENTIFIED COST $0) 6,380
- -----------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--96.6%
(IDENTIFIED COST $143,872,870) 169,863,936
- -----------------------------------------------------------------------------
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000)
------------ ---------
SHORT TERM OBLIGATIONS--3.4%
COMMERCIAL PAPER--1.4%
Corporate Asset Funding Co., Inc. 5.70%,
12/2/99 ................................. A-1+ $2,500 $ 2,499,604
FEDERAL AGENCY SECURITIES--2.0%
Federal Home Loan Mortgage Corp.
Discount Note 5.61%, 12/1/99 ............ 3,430 3,430,000
- -----------------------------------------------------------------------------
TOTAL SHORT TERM OBLIGATIONS
(IDENTIFIED COST $5,929,604) 5,929,604
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS--100.0%
(IDENTIFIED COST $149,802,474) 175,793,540(a)
Cash and receivables, less liabilities--0.0% 52,988
------------
NET ASSETS--100.0% $175,846,528
============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $33,309,849 and gross
depreciation of $8,196,343 for federal income tax purposes. At November 30,
1999, the aggregate cost of securities for federal income tax purposes was
$150,680,034.
(b) Non-income producing.
See Notes to Financial Statements
9
<PAGE>
Phoenix-Aberdeen International Fund
<TABLE>
<CAPTION>
INDUSTRY DIVERSIFICATION
AS A PERCENTAGE OF TOTAL VALUE OF
TOTAL LONG-TERM INVESTMENTS
(UNAUDITED)
<S> <C> <C>
Aerospace/Defense........................ 0.4% Household Products (Non-Durable) .... 0.9%
Air Freight.............................. 0.7 Insurance (Life/Health) ............. 1.4
Airlines................................. 1.7 Insurance (Multi-Line) .............. 2.9
Auto Parts & Equipment................... 0.5 Insurance (Property-Casualty) ....... 0.7
Automobiles.............................. 2.0 Investment Banking/Brokerage ........ 1.8
Banks (Major Regional)...................10.8 Investment Management ............... 0.1
Banks (Money Center)..................... 1.2 Iron & Steel ........................ 1.5
Beverages (Alcoholic).................... 1.6 Machinery (Diversified) ............. 0.6
Beverages (Non-Alcoholic)................ 0.3 Manufacturing (Diversified) ......... 3.3
Broadcasting (Television, Radio & Cable). 0.8 Metal Fabricators ................... 0.9
Chemicals (Diversified).................. 1.1 Metals Mining ....................... 0.6
Chemicals (Specialty).................... 1.5 Natural Gas ......................... 0.9
Communications Equipment................. 6.8 Office Equipment & Supplies ......... 0.8
Computers (Hardware) .................... 0.5 Oil & Gas (Drilling & Equipment) .... 0.2
Construction (Cement & Aggregates)....... 1.2 Oil & Gas (Exploration & Production) 0.1
Consumer Finance ........................ 1.0 Oil & Gas (Refining & Marketing) .... 1.7
Containers & Packaging (Paper) .......... 0.6 Oil (Domestic Integrated) ........... 3.3
Distributors (Food & Health) ............ 0.2 Paper & Forest Products ............. 0.7
Electric Companies ...................... 1.0 Photography/Imaging ................. 0.9
Electrical Equipment .................... 1.5 Publishing .......................... 0.6
Electronics (Component Distributors) .... 0.8 Restaurants ......................... 0.2
Electronics (Semiconductors) ............ 1.9 Retail (Building Supplies) .......... 0.7
Engineering & Construction .............. 0.8 Retail (Food Chains) ................ 2.6
Entertainment ........................... 1.3 Retail (Specialty) .................. 1.2
Equipment (Semiconductor) ............... 0.5 Services (Commercial & Consumer) .... 1.3
Financial (Diversified) ................. 3.6 Services (Data Processing) .......... 1.1
Foods ................................... 1.8 Specialty Printing .................. 0.9
Gaming, Lottery & Pari-mutuel Companies . 0.2 Telecommunications (Long Distance) .. 2.1
Health Care (Diversified) ............... 0.4 Telecommunications (Cellular/Wireless)3.0
Health Care (Drugs-Major Pharmaceuticals) 5.9 Telephone ........................... 7.3
Health Care (Medical Products & Supplies) 0.2 Tobacco ............................. 0.2
Homebuilding ............................ 0.2 Water Utilities ..................... 0.2
Household Furnishings & Appliances....... 2.3 ------
100.0%
======
</TABLE>
10
<PAGE>
Phoenix-Aberdeen International Fund
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
ASSETS
Investment securities at value
(Identified cost $149,802,474) $175,793,540
Cash 3,071
Foreign currency at value
(Identified cost $217,870) 217,915
Receivables
Investment securities sold 1,122,813
Fund shares sold 282,675
Tax reclaim 192,720
Dividends and interest 157,501
Prepaid expenses 3,295
------------
Total assets 177,773,530
------------
LIABILITIES
Payables
Fund shares repurchased 1,271,447
Investment securities purchased 217,870
Investment advisory fee 109,167
Distribution fee 51,520
Transfer agent fee 48,325
Financial agent fee 13,805
Trustees' fee 4,258
Accrued expenses 210,610
------------
Total liabilities 1,927,002
------------
NET ASSETS $175,846,528
============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $122,172,507
Undistributed net investment income 594,884
Accumulated net realized gain 27,103,528
Net unrealized appreciation 25,975,609
------------
NET ASSETS $175,846,528
============
CLASS A
Shares of beneficial interest outstanding, $1 par value
unlimited authorization (Net Assets $151,015,828) 9,850,682
Net asset value per share $15.33
Offering price per share $ 15.33/(1-4.75%) $16.09
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $23,693,556) 1,618,852
Net asset value and offering price per share $14.64
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $1,137,144) 77,640
Net asset value and offering price per share $14.65
STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1999
INVESTMENT INCOME
Dividends $ 3,316,330
Interest 309,301
Foreign taxes withheld (255,652)
------------
Total investment income 3,369,979
------------
EXPENSES
Investment advisory fee 1,408,005
Distribution fee, Class A 417,142
Distribution fee, Class B 204,980
Distribution fee, Class C 3,791
Financial agent fee 193,466
Transfer agent 379,777
Custodian 239,565
Printing 97,709
Professional 37,482
Registration 19,843
Trustees 17,000
Miscellaneous 14,071
------------
Total expenses 3,032,831
------------
NET INVESTMENT INCOME 337,148
------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain on securities 27,528,737
Net realized gain on foreign currency transactions 180,553
Net change in unrealized appreciation (depreciation) on
investments 7,642,088
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions (37,398)
------------
NET GAIN ON INVESTMENTS 35,313,980
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $35,651,128
============
See Notes to Financial Statements
11
<PAGE>
Phoenix-Aberdeen International Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
11/30/99 11/30/98
---------- ----------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 337,148 $ 612,150
Net realized gain (loss) 27,709,290 39,589,902
Net change in unrealized appreciation (depreciation) 7,604,690 (634,648)
----------- -----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 35,651,128 39,567,404
----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (965,436) --
Net investment income, Class B (53,315) --
Net investment income, Class C (618) --
Net realized capital gains, Class A (34,216,232) (12,005,464)
Net realized capital gains, Class B (3,256,281) (942,871)
----------- -----------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (38,491,882) (12,948,335)
----------- -----------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (43,335,908 and 14,403,040 shares, respectively) 603,284,388 222,721,708
Net asset value of shares issued from reinvestment of distributions
(2,295,281 and 829,298 shares, respectively) 30,104,837 10,631,599
Cost of shares repurchased (46,511,696 and 13,954,794 shares, respectively) (650,782,676) (218,052,596)
------------ ------------
Total (17,393,451) 15,300,711
------------ ------------
CLASS B
Proceeds from sales of shares (2,376,201 and 1,090,651 shares, respectively) 31,785,116 16,507,911
Net asset value of shares issued from reinvestment of distributions
(225,595 and 68,327 shares, respectively)2,838,109 852,722
Cost of shares repurchased (2,104,335 and 786,659 shares, respectively) (28,370,576) (12,000,603)
------------ ------------
Total 6,252,649 5,360,030
------------ ------------
CLASS C
Proceeds from sales of shares (89,026 and 0 shares, respectively) 1,216,206 --
Net asset value of shares issued from reinvestment of distributions
(29 and 0 shares, respectively) 396 --
Cost of shares repurchased (11,415 and 0 shares, respectively) (166,015) --
------------ ------------
Total 1,050,587 --
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (10,090,215) 20,660,741
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (12,930,969) 47,279,810
NET ASSETS
Beginning of period 188,777,497 141,497,687
------------ -----------
END OF PERIOD [INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME
OF $594,884 AND $805,667, RESPECTIVELY] $175,846,528 $188,777,497
============ ============
</TABLE>
See Notes to Financial Statements
12
<PAGE>
Phoenix-Aberdeen International Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------
YEAR ENDED NOVEMBER 30
-------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1999 1998 1997 1996 1995
Net asset value, beginning of period $15.98 $13.89 $14.48 $12.20 $12.63
INCOME FROM INVESTMENT OPERATIONS(5)
Net investment income 0.04(1) 0.06(1) 0.03(1) 0.04(1) 0.03(1)
Net realized and unrealized gain 2.49 3.27 1.01 2.28 0.42
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 2.53 3.33 1.04 2.32 0.45
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.07) -- (0.29) -- --
Dividends from net realized gains (3.11) (1.24) (1.34) (0.04) (0.88)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (3.18) (1.24) (1.63) (0.04) (0.88)
------ ------ ------ ------ ------
Change in net asset value (0.65) 2.09 (0.59) 2.28 (0.43)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $15.33 $15.98 $13.89 $14.48 $12.20
====== ====== ====== ====== ======
Total return(2) 19.22% 26.17% 8.21% 19.03% 4.12%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $151,016 $171,463 $131,338 $135,524 $129,352
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.53% 1.37% 1.56% 1.57% 1.70%
Net investment income 0.27% 0.40% 0.22% 0.33% 0.23%
Portfolio turnover 77% 104% 167% 151% 236%
</TABLE>
<TABLE>
<CAPTION>
CLASS B CLASS C
------------------------------------------------------- ---------
FROM
YEAR ENDED NOVEMBER 30 INCEPTION
------------------------------------------------------- 3/30/99 to
1999 1998 1997 1996 1995 11/30/99
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $15.44 $13.56 $14.22 $12.07 $12.60 $12.82
INCOME FROM INVESTMENT OPERATIONS(5)
Net investment income (loss) (0.07)(1) (0.05)(1) (0.08)(1) (0.05)(1) (0.07)(1) (0.08)(1)
Net realized and unrealized gain 2.40 3.17 1.00 2.24 0.42 1.93
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 2.33 3.12 0.92 2.19 0.35 1.85
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.02) -- (0.24) -- -- (0.02)
Dividends from net realized gains (3.11) (1.24) (1.34) (0.04) (0.88) --
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (3.13) (1.24) (1.58) (0.04) (0.88) (0.02)
------ ------ ------ ------ ------ ------
Change in net asset value (0.80) 1.88 (0.66) 2.15 (0.53) 1.83
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $14.64 $15.44 $13.56 $14.22 $12.07 $14.65
====== ====== ====== ====== ====== ======
Total return(2) 18.45% 25.17 % 7.37 % 18.16 % 3.28 % 14.41 %(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $23,694 $17,315 $10,159 $6,955 $3,261 $1,137
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.29 % 2.11 % 2.31 % 2.31 % 2.50 % 2.30 %(3)
Net investment income (0.51)% (0.34)% (0.55)% (0.39)% (0.61)% (0.85)%(3)
Portfolio turnover 77 % 104 % 167 % 151 % 236 % 77 %
<FN>
(1) Computed using average shares outstanding.
(2) Maximum sales charges are not reflected in total return calculation. (3)
(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 timing of share purchases and redemptions.
</FN>
</TABLE>
See Notes to Financial Statements
13
<PAGE>
PHOENIX-DUFF & PHELPS REAL ESTATE SECURITIES FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGER, MICHAEL SCHATT
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Fund is appropriate for investors seeking investment in a diversified
portfolio of real estate investment trusts and real estate operating companies.
The Fund's objective is to emphasize appreciation and current yield equally.
Invesors should note that real estate investing involves certain risks,
including refinancing, economic impact on the industry, changes in the value of
properties owned, dependency on management skills, and liquidity risks similar
to those associated with small-company investing.
Q: HOW DID THE FUND PERFORM FOR THE PAST FISCAL YEAR?
A: During this reporting period, the Phoenix-Duff & Phelps Real Estate
Securities Fund outperformed its benchmark, the NAREIT Equity Total Return Index
1, and its peers. For the 12 months ended November 30, 1999, Class A shares
returned (4.69)% and Class B shares returned (5.38)% compared with a return of
(9.88)% for the NAREIT Equity Total Return Index and an average return of
(7.43)% for a peer universe of 130 real estate mutual funds, according to
Lipper, Inc. The Fund also outperformed both the S&P Uilities Index 2, which had
a negative return of (7.09)%, and the Lehman Brothers Long Treasury Bond Index
3, which was down (7.55)%, in a rising interest rate environment, that adversely
impacted fixed-income securities and utilities. All performance figures assume
reinvestment of distributions and exclude the effect of sales charges.
Q: WHAT FACTORS CONTRIBUTED TO YOUR STRONG RELATIVE PERFORMANCE?
A: We attribute our value-added performance to our ground-up stock selection,
style, and sector weightings. Our style combines a pursuit of growth and value,
and is sometimes referred to as "growth at a reasonable price." Exhaustive
research is conducted on each holding before its purchase and on an ongoing
basis. An integral and distinguishing part of the process is a regular property
review. We recently toured one of our apartment REIT's properties in Santa Clara
County, California, posing as a prospective tenant. We were able to compare the
execution of the company's strategy to the goals articulated by the firm's
regional managers and executives. We found that property level management
understood the direction provided by senior management and adapted the
directives to meet the conditions of the local market. Confirmation of alignment
of strategy and implementation supported our decision to maintain the investment
in this company. Regular property reviews have helped us make timely buy and
sell decisions.
Given both the state of equilibrium in most real estate sectors and the
capital constraint facing real estate companies, the importance of management
quality is growing. Some management teams have been caught in the market's
headlights like deer. The teams that adapt, focus on strong markets where they
can deliver high internal earnings growth, build a strong rapport with tenants,
and demonstrate the ability to recycle capital successfully and make it across
the due diligence road safely and
1 THE NAREIT (NATIONAL ASSOCIATION OF REAL ESTATE INVESTMENT TRUST) EQUITY
TOTAL RETURN INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF REAL ESTATE
EQUITY MARKET TOTAL RETURN PERFORMANCE.
2 THE S&P UTILITIES INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF TOTAL
RETURN PERFORMANCE OF THE UTILITIES MARKET.
3 THE LEHMAN BROTHERS LONG TREASURY BOND INDEX IS AN UNMANAGED, COMMONLY USED
MEASURE OF TOTAL RETURN PERFORMANCE OF THE TREASURY BOND MARKET. THE INDICES
ARE NOT AVAILABLE FOR DIRECT INVESTMENT.
14
<PAGE>
PHOENIX-DUFF & PHELPS REAL ESTATE SECURITIES FUND (CONTINUED)
into our holdings. Examples include Essex Properties, Spieker Properties, and
Centerpoint Properties.
Investors' perceptions of tempered earnings growth rates, weakening
property markets, rising interest rates, the noise from too many companies
representing too little capital, and lingering doubts about the pervasiveness of
self- interest decision-making in this sector contributed to the continued flow
of capital out of the sector in 1999.
Q: WHAT IS YOUR OUTLOOK FOR THE REIT MARKET?
A: We are witnessing the emergence of a number of themes that are positive for
equity REITs. The first is the discipline provided by the capital markets to
keep supply in balance with demand, particularly in markets where there are
limited barriers to entry. Our investment bias is toward REITs with portfolios
concentrated in markets with high barries to entry. Without the capital markets'
discipline, office markets such as Dallas, a low barrier-to-entry market, would
have been significantly oberbuilt for the third decade in a row. Dallas went
through boom-and-bust periods in the '70s, again in the '80s, and with not much
time left in the '90s, it almost pulled it off again. It remains mildly
overbuilt, but has not gone bust.
This discipline is lengthening the real estate cycle. Moderation is
occurring in both the historical boom-and-bust portions, providing a smoothing
effect. While it is likely to limit the attractive returns that have
historically been available during the recovery period of the cycle, shorter and
less intense cycles support the view of real estate as a stable core industry
with a low risk profile. Has it helped all sectors and markets? Of course not.
Nationwide, you can find markets where any one of the 14 real estate sectors is
being overbuilt. For example, we continue to be rewarded by having a zero
weighting in the lodging sector, given the excessive number of hotel rooms being
developed.
The second major positive theme is a build-up of earnings growth in markets
where high barriers to entry or high market share concentrations exist. In many
of these cases, rents have increased rapidly or even spiked. We call this
build-up of earnings growth "loss-to-lease." It represents the amount of income
that a portfolio could generate if all of its leases were brought to market.
For example, in the case of Spieker Properties, this would amount to more
than a 38% increase in earnings if its leases were rolled to market levels by
our estimate. The speed at which a company will capture this loss-to-lease is
based on how quickly the leases mature and if there are any restrictions on
bringing the leases to market. For example, if Spieker's average lease is five
years, we can expect close to 20% of the leases to roll per year. An apartment
company rolls its leases at least once a year. Essex Properties, an apartment
company with a portfolio in the West Coast's demand-favored markets, has
significant loss-to-lease growth potential.
A third trend we are witnessing is the bifurcation of equity REITs into
companies that embrace the goal of providing shareholder value and those that
continue to operate as if they were still private. For example, when a company's
stock has been sold off to the extent that repurchasing it will provide a higher
return than acquisitions or development, logic indicates the company should slow
its external growth pursuits and implement a stock-buyback program. To fund the
program, the company may have to sell assets to avoid increasing the leverage on
the balance sheet, leading us to our next trend.
15
<PAGE>
PHOENIX-DUFF & PHELPS REAL ESTATE SECURITIES FUND (CONTINUED)
The recycling of capital is the fourth trend, and is a proven concept.
Manufacturers learned long ago that they can improve their return on equity by
turning their inventory and receivables at a faster pace. Smart REIT management
teams have chosen to recycle capital by selling assets where most of the upside
has been achieved and subsequently redeploying the capital into better
investment opportunities. REIT management teams that remain tied to an additive
strategy more appropriate for a fluid real estate capital market are finding
that they fall out of favor, even if the outlook for their particular sector is
positive.
A fifth trend we are seeing is the growing use of the joint-venture
structure. The use of joint ventures can help REITs tap new capital sources and
recycle capital, diversify risk, partner with expertise, increase fee income,
maintain control through the property management and development
responsibilities, and earn higher returns. There is, of course, some downside
risk if the transactions are not well structured, not transparent, and do not
emphasize financial disclosure.
Consolidation and privatization represent the sixth trend. We have seen a
growing number of mergers and buyouts, but the amount of activity will most
likely remain at a low level until management teams of the out-of-favor
companies give up their poison pills and accept what is inevitable.
Until the level of activity becomes material and significant premiums are
offered to those companies being acquired or going private, we do not think a
bottom-fishing style will earn trophy returns. Over the near term, we are likely
to see the continuation of the migration of capital to REITs with proven
strategies to create shareholder value and to prosper in a capital-constrained
environment. The result should be de facto consolidation with investment in a
smaller number of companies.
Finally, with the recent passage of the REIT Modernization Act by Congress,
REITs will be able to establish their own taxable subsidiaries and offer new
products and services to tenants. Companies such as Equity Residential
Properties, with over 228,000 apartments, are already beginning to offer telecom
and financial services to their captive customer base. This will allow REITs to
grow incremental earnings with very little capital deployed. That's definitely
positive.
So where do we see earnings growth and returns headed? The themes outlined
above reflect a sector that is maturing. Two years of capital constraint have
accelerated this process. As the majority of REITs enter their fifth or sixth
year as public companies and each management team reexamines its dedication to
operating a public company, the schism between dedicated, proactive management
and naive management continues to widen. We believe we can continue to steer the
portfolio toward the more mature REITs that demonstrate savvy. With earnings
growth of 7-8% projected for 2000 and a November 30 NAREIT Equity Index yield of
8.8%, we believe that these mature REITs could endure some multiple contraction
if interest rates continue to rise and still deliver double-digit returns.
DECEMBER 20, 1999
16
<PAGE>
Phoenix-Duff & Phelps Real Estate Securities Fund
AVERAGE ANNUAL TOTAL RETURNS 1 PERIOD ENDING 11/30/99
INCEPTION INCEPTION
1 YEAR TO 11/30/99 DATE
------ ----------- ---------
Class A Shares at NAV 2 (4.69)% 8.42% 3/1/95
Class A Shares at POP 3 (9.21) 7.32 3/1/95
Class B Shares at NAV 2 (5.38) 7.61 3/1/95
Class B Shares with CDSC 4 (9.00) 7.29 3/1/95
NAREIT Index 6 (9.88) 7.76 3/1/95
1 Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
2 "NAV" (Net Asset Value) total returns do not include the effect of any sales
charge.
3 "POP" (Public Offering Price) total returns include the effect of the maximum
front-end 4.75% sales charge.
4 CDSC (contingent deferred sales charge) is applied to redemptions of certain
classes of shares that do not have a sales charge applied at the time of
purchase. CDSC charges for B shares decline from 5% to 0% over a five year
period.
5 This chart illustrates POP returns on Class A shares and CDSC returns for
Class B shares since inception.
6 The National Association of Real Estate Investment Trust (NAREIT) Index is an
unmanaged, commonly used measure of REIT performance. The index's performance
does not reflect sales charges.
All returns represent past performance which may not be indicative of future
performance. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
GROWTH OF $10,000 PERIODS ENDING 11/30
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
DUFF&PHELPS FUND
Phoenix-Duff & Phelps Phoenix-Duff & Phelps
Real Estate Securities Real Estate Securities
Fund Class A 5 Fund Class B NAREIT Index 6
3/1/95 9,525 10,000 10,000
11/30/95 10,465 10,921 10,903
11/30/96 13,521 14,006 14,087
11/30/97 17,772 18,270 18,275
11/30/98 14,676 14,980 15,831
11/30/99 13,988 13,974 14,268
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
3/1/95 (inception of the Fund) in Class A and Class B shares. The total return
for Class A shares reflects the maximum sales charge of 4.75% on the initial
investment. The total return for Class B shares reflects the CDSC charges which
decline from 5% to 0% over a five year period. Performance assumes dividends and
capital gains are reinvested.
SECTOR WEIGHTINGS 11/30/99
As a percentage of equity holdings
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Office 24%
Apartments 23
Regional Malls 11
Mixed 9
Diversified 8
Industrial 8
Strip Centers 7
Other 10
17
<PAGE>
Phoenix-Duff & Phelps Real Estate Securities Fund
TEN LARGEST HOLDINGS AT NOVEMBER 30, 1999 (AS A PERCENTAGE OF TOTAL NET ASSETS)
1. Spieker Properties, Inc. 7.2%
OFFICE REIT
2. Boston Properties, Inc. 7.0%
OFFICE REIT
3. Apartment Investment & Management Co. 6.1%
APARTMENT REIT
4. Vornado Realty Trust 6.1%
DIVERSIFIED REIT
5. Reckson Associates Realty Corp. 5.7%
MIXED REIT
6. Essex Property Trust, Inc. 5.2%
APARTMENT REIT
7. Equity Residential Properties Trust 4.9%
APARTMENT REIT
8. Avalonbay Communities, Inc. 4.5%
APARTMENT REIT
9. Mack-Cali Realty Corp. 4.0%
OFFICE REIT
10. First Industrial Realty Trust, Inc. 3.8%
INDUSTRIAL REIT
INVESTMENTS AT NOVEMBER 30, 1999
SHARES VALUE
------------ ----------
COMMON STOCK--99.7%
REAL ESTATE INVESTMENT TRUST--97.1%
DIVERSIFIED--8.2%
Colonial Properties Trust ........................... 25,000 $ 615,625
Vornado Realty Trust ................................ 56,500 1,783,281
----------
2,398,906
----------
INDUSTRIAL/OFFICE--40.6%
INDUSTRIAL--7.6%
CenterPoint Properties Corp. ........................ 31,500 1,094,625
First Industrial Realty Trust, Inc. ................. 44,000 1,122,000
----------
2,216,625
----------
MIXED--9.2%
Duke-Weeks Realty Corp. ............................. 54,474 1,007,769
Reckson Associates Realty Corp. ..................... 82,700 1,669,506
----------
2,677,275
----------
OFFICE--23.8%
Alexandria Real Estate Equities, Inc. ............... 30,000 879,375
Boston Properties, Inc. ............................. 72,200 2,044,163
Equity Office Properties Trust ...................... 25,000 548,438
Highwoods Properties, Inc. .......................... 10,000 220,000
Mack-Cali Realty Corp. .............................. 47,900 1,182,531
Spieker Properties, Inc. ............................ 60,000 2,100,000
----------
6,974,507
----------
- -----------------------------------------------------------------------------
TOTAL INDUSTRIAL/OFFICE 11,868,407
- -----------------------------------------------------------------------------
SHARES VALUE
------------ ----------
RESIDENTIAL--26.5%
APARTMENTS--22.8%
Apartment Investment & Management Co ................ 48,000 $1,785,000
Avalonbay Communities, Inc. ......................... 40,700 1,317,662
Equity Residential Properties Trust ................. 35,800 1,438,712
Essex Property Trust, Inc. .......................... 47,400 1,537,537
Smith, Charles E. Residential Realty, Inc ........... 18,000 585,000
----------
6,663,911
----------
MANUFACTURED HOMES--3.7%
Manufactured Home Communities, Inc .................. 21,500 509,281
Sun Communities, Inc. ............................... 19,200 583,200
----------
1,092,481
----------
- -----------------------------------------------------------------------------
TOTAL RESIDENTIAL 7,756,392
- -----------------------------------------------------------------------------
RETAIL--20.3%
OUTLET CENTERS--2.6%
Chelsea GCA Realty, Inc. ............................ 25,000 773,438
REGIONAL MALLS--11.1%
CBL & Associates Properties, Inc .................... 44,000 959,750
General Growth Properties, Inc. ..................... 23,000 688,563
Macerich Co. (The) .................................. 43,800 870,525
Urban Shopping Centers, Inc. ........................ 28,000 722,750
----------
3,241,588
----------
STRIP CENTERS--6.6%
Developers Diversified Realty Corp. ................. 49,200 685,725
JDN Realty Corp. .................................... 25,000 410,938
Kimco Realty Corp. .................................. 25,000 831,250
----------
1,927,913
----------
- -----------------------------------------------------------------------------
TOTAL RETAIL 5,942,939
- -----------------------------------------------------------------------------
See Notes to Financial Statements
18
<PAGE>
Phoenix-Duff & Phelps Real Estate Securities Fund
SHARES VALUE
------------ ----------
SELF STORAGE--1.5%
Storage USA, Inc. ................................... 16,700 $ 450,900
- -----------------------------------------------------------------------------
TOTAL REAL ESTATE INVESTMENT TRUST
(IDENTIFIED COST $31,402,094) 28,417,544
- -----------------------------------------------------------------------------
REAL ESTATE OPERATING COMPANY--2.6%
DIVERSIFIED--0.1%
Vornado Operating Inc.(b) ........................... 4,075 23,686
INDUSTRIAL OFFICE--2.5%
Reckson Services Industries, Inc.(b) ................ 26,636 732,490
- -----------------------------------------------------------------------------
TOTAL REAL ESTATE OPERATING COMPANIES 756,176
- -----------------------------------------------------------------------------
TOTAL COMMON STOCK
(IDENTIFIED COST $31,435,010) 29,173,720
- -----------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--99.7%
(IDENTIFIED COST $31,474,427) 29,173,720
- -----------------------------------------------------------------------------
PAR
(000) VALUE
------------ ----------
SHORT-TERM OBLIGATIONS--0.7%
FEDERAL AGENCY SECURITIES--0.7%
Federal Home Loan Mortgage Corp.
Discount Note 5.61%, 12/1/99 ....................... $210 $ 210,000
- -----------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $210,000) 210,000
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS--100.4%
(IDENTIFIED COST $31,684,427) 29,383,720(a)
Cash and receivables, less liabilities--(0.4%) (128,209)
----------
NET ASSETS--100.0% .................................. $29,255,511
==========
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $1,406,902 and gross
depreciation of $3,707,609 for federal income tax purposes. At November 30,
1999, the aggregate cost of securities for federal income tax purposes was
$31,684,427.
(b) Non-income producing.
See Notes to Financial Statements
19
<PAGE>
Phoenix-Duff & Phelps Real Estate Securities Fund
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
ASSETS
Investment securities at value
(Identified cost $31,684,427) $ 29,383,720
Receivables
Dividends and interest 38,018
Fund shares sold 6,710
Receivable from advisor 5,376
Prepaid expense 788
-------------
Total assets 29,434,612
-------------
LIABILITIES
Custodian 301
Payables
Fund shares repurchased 75,349
Transfer agent fee 15,880
Distribution fee 14,109
Financial agent fee 5,099
Trustees' fee 4,258
Accrued expenses 64,105
-------------
Total liabilities 179,101
-------------
NET ASSETS $29,255,511
=============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $33,276,244
Undistributed net investment income 239,751
Accumulated net realized loss (1,959,777)
Net unrealized depreciation (2,300,707)
-------------
NET ASSETS $29,255,511
=============
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $17,014,442) 1,531,091
Net asset value per share $11.11
Offering price per share $11.11/(1-4.75%) $11.66
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $12,241,069) 1,108,654
Net asset value and offering price per share $11.04
STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1999
INVESTMENT INCOME
Dividends $ 1,982,990
Interest 36,561
--------------
Total investment income 2,019,551
--------------
EXPENSES
Investment advisory fee 270,694
Distribution fee, Class A 52,327
Distribution fee, Class B 151,623
Financial agent fee 64,365
Transfer agent 93,814
Printing 31,091
Professional 23,191
Registration 22,666
Trustees 16,998
Custodian 11,062
Miscellaneous 7,795
--------------
Total expenses 745,626
Less expenses borne by investment adviser (162,984)
--------------
Net expenses 582,642
--------------
NET INVESTMENT INCOME 1,436,909
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (1,888,259)
Net change in unrealized appreciation (depreciation) on
investments (1,322,055)
--------------
NET LOSS ON INVESTMENTS (3,210,314)
--------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(1,773,405)
==============
See Notes to Financial Statements
20
<PAGE>
Phoenix-Duff & Phelps Real Estate Securities Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
11/30/99 11/30/98
------------- -------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 1,436,909 $ 1,854,142
Net realized gain (loss) (1,888,259) (70,514)
Net change in unrealized appreciation (depreciation) (1,322,055) (12,098,214)
----------- ------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (1,773,405) (10,314,586)
----------- ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (1,076,704) (967,687)
Net investment income, Class B (688,451) (535,003)
Net realized gains, Class A -- (2,254,756)
Net realized gains, Class B -- (1,514,857)
----------- ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (1,765,155) (5,272,303)
----------- ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (149,096 and 445,657 shares, respectively) 1,804,294 6,419,885
Net asset value of shares issued from reinvestment of distributions
(85,480 and 207,094 shares, respectively) 990,008 3,035,928
Cost of shares repurchased (718,769 and 855,051 shares, respectively) (8,384,839) (11,951,570)
----------- ------------
Total (5,590,537) (2,495,757)
----------- ------------
CLASS B
Proceeds from sales of shares (167,405 and 362,036 shares, respectively) 2,005,746 5,231,142
Net asset value of shares issued from reinvestment of distributions
(47,858 and 120,031 shares, respectively) 551,622 1,757,836
Cost of shares repurchased (602,692 and 400,698 shares, respectively) (7,096,425) (5,408,854)
----------- ------------
Total (4,539,057) 1,580,124
----------- ------------
DECREASE IN NET ASSETS FROM SHARE TRANSACTIONS (10,129,594) (915,633)
----------- ------------
NET DECREASE IN NET ASSETS (13,668,154) (16,502,522)
NET ASSETS
Beginning of period 42,923,665 59,426,187
----------- ------------
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF
$239,751 AND $563,936, RESPECTIVELY) $29,255,511 $ 42,923,665
=========== ============
</TABLE>
See Notes to Financial Statements
21
<PAGE>
Phoenix-Duff & Phelps Real Estate Securities Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------
FROM
YEAR ENDED NOVEMBER 30 INCEPTION
-------------------------------------------- 3/1/95 TO
<S> <C> <C> <C> <C> <C>
1999 1998 1997 1996 11/30/95
----------
Net asset value, beginning of period $12.25 $16.39 $13.14 $10.72 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.51(4)(5) 0.55(4)(5) 0.49(4)(5) 0.53(5) 0.43(4)(5)
Net realized and unrealized gain (loss) (1.07) (3.18) 3.52 2.50 0.55
------ ------ ------ ------ -----
TOTAL FROM INVESTMENT OPERATIONS (0.56) (2.63) 4.01 3.03 0.98
------ ------ ------ ------ -----
LESS DISTRIBUTIONS
Dividends from net investment income (0.58) (0.44) (0.51) (0.59) (0.26)
Dividends from net realized gains -- (1.07) (0.25) (0.02) --
------ ------ ------ ------ -----
TOTAL DISTRIBUTIONS (0.58) (1.51) (0.76) (0.61) (0.26)
------ ------ ------ ------ -----
Change in net asset value (1.14) (4.14) 3.25 2.42 0.72
------ ------ ------ ------ -----
NET ASSET VALUE, END OF PERIOD $11.11 $12.25 $16.39 $13.14 $10.72
====== ====== ====== ====== =====
Total return(1) (4.69)% (17.42)% 31.44% 29.20% 9.87%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $17,014 $24,686 $36,336 $22,872 $13,842
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.30% 1.31% 1.30% 1.30% 1.30%(2)
Net investment income 4.30% 3.79% 3.34% 4.55% 5.79%(2)
Portfolio turnover 22% 11% 54% 24% 9%(3)
CLASS B
---------------------------------------------------------
FROM
YEAR ENDED NOVEMBER 30 INCEPTION
-------------------------------------------- 3/1/95 TO
<S> <C> <C> <C> <C> <C>
1999 1998 1997 1996 11/30/95
---------
Net asset value, beginning of period $12.19 $16.32 $13.10 $10.68 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.42(4)(6) 0.43(4)(6) 0.38(4)(6) 0.46(6) 0.36(4)(6)
Net realized and unrealized gain (loss) (1.06) (3.15) 3.50 2.47 0.56
------ ------ ------ ------ -----
TOTAL FROM INVESTMENT OPERATIONS (0.64) (2.72) 3.88 2.93 0.92
------ ------ ------ ------ -----
LESS DISTRIBUTIONS
Dividends from net investment income (0.51) (0.34) (0.41) (0.49) (0.24)
Dividends from net realized gains -- (1.07) (0.25) (0.02) --
------ ------ ------ ------ -----
TOTAL DISTRIBUTIONS (0.51) (1.41) (0.66) (0.51) (0.24)
------ ------ ------ ------ -----
Change in net asset value (1.15) (4.13) 3.22 2.42 0.68
------ ------ ------ ------ -----
NET ASSET VALUE, END OF PERIOD $11.04 $12.19 $16.32 $13.10 $10.68
====== ====== ====== ====== =====
Total return(1) (5.38)% (18.01)% 30.44% 28.25% 9.21%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $12,241 $18,237 $23,091 $8,259 $2,239
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.05% 2.06% 2.05% 2.05% 2.05%(2)
Net investment income 3.54% 3.07% 2.55% 3.95% 5.03%(2)
Portfolio turnover 22% 11% 54% 24% 9%(3)
<FN>
(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
$0.05, $0.02, $0.04, $0.07 and $0.12, respectively.
(6) Includes reimbursement of operating expenses by investment adviser of
$0.05, $0.02, $0.04, $0.07 and $0.12, respectively.
</FN>
</TABLE>
See Notes to Financial Statements
22
<PAGE>
PHOENIX-GOODWIN EMERGING MARKETS BOND FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGER, PETER S. LANNIGAN, CFA
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Fund seeks as its primary objective high current income. The secondary
objective is long-term capital appreciation. The Fund invests in high-yield,
high-risk debt securities issued by governments and corporations in emerging
markets. Debt securities issued by foreign issuers involve greater risks of
default, untimely interest and principal payments, and price volatility than
higher-rated securities and may present problems of liquidation and valuation.
Q: HOW DID THE FUND PERFORM OVER THE LAST YEAR?
A: For the fiscal year ended November 30, 1999, Class A shares returned 25.63%,
Class B shares returned 24.52%, and Class C shares returned 24.40% compared with
16.53% for the J.P. Morgan Emerging Market Bond Index Plus (JP Morgan EMBI+)1.
All performance figures assume reinvestment of distributions and exclude the
effect of sales charges.
Q: WHAT WERE SOME OF THE FACTORS THAT AFFECTED PERFORMANCE?
A: During this reporting period, emerging markets worldwide experienced a strong
recovery, emanating from the end of the global crisis that began in mid-1997.
The Fund was well positioned to benefit from the resumption of the positive
long-term economic performance of the emerging countries in which the Fund
invests. Specifically, Russian markets had very strong performance throughout
the year.
Also, after devaluing its currency earlier in 1999, Brazil staged a strong
rally. Equally important, the Fund avoided countries that experienced
difficulties. A good example is the Fund's lack of exposure to Ecuador, which
defaulted on its debt in August, driving its bond index down by (26.05)% for the
12-month period.
Q: WHAT IS YOUR OUTLOOK FOR EMERGING MARKETS?
A: Positive. The new year should attract more crossover investors to the
emerging markets as yield levels remain as attractive as they were last year,
yet the global economy is no longer in crisis as it was this time last year when
many investors were concerned that the economic turmoil would continue,
spreading into Latin America. Although past performance is no guarantee of
future performance, we believe the first year of the millennium is shaping up to
be another strong year for emerging markets.
DECEMBER 14, 1999
1 THE J.P. MORGAN EMERGING MARKET BOND INDEX PLUS (JP MORGAN EMBI+) IS AN
UNMANAGED, COMMONLY USED MEASURE OF TOTAL RETURN PERFORMANCE OF
EMERGING-MARKETS DEBT. THE INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT.
23
<PAGE>
Phoenix-Goodwin Emerging Markets Bond Fund
AVERAGE ANNUAL TOTAL RETURNS 1 PERIOD ENDING 11/30/99
INCEPTION INCEPTION
1 YEAR TO 11/30/99 DATE
------ ----------- ---------
Class A Shares at NAV 2 25.63% 13.52% 9/5/95
Class A Shares at POP 3 19.67 12.22 9/5/95
Class B Shares at NAV 2 24.52 12.62 9/5/95
Class B Shares with CDSC 4 20.52 12.38 9/5/95
Class C Shares at NAV 2 24.40 (12.13) 3/26/98
Class C Shares with CDSC 4 24.40 (12.13) 3/26/98
JP Morgan EMBI+ 7 16.53 Note 5 Note 5
1 Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
2 "NAV" (Net Asset Value) total returns do not include the effect of any
sales charge.
3 "POP" (Public Offering Price) total returns include the effect of the
maximum front-end 4.75% sales charge.
4 CDSC (contingent deferred sales charge) is applied to redemptions of
certain classes of shares that do not have a sales charge applied at the
time of purchase. CDSC charges for B shares decline from 5% to 0% over a
five year period. CDSC charges for C shares are 1% in the first year and 0%
thereafter.
5 Index performance is 15.15% for Class A and Class B (since 9/5/95) and
(1.63)% for Class C (since 3/26/98), respectively.
6 This chart illustrates POP returns on Class A shares and CDSC returns for
Class B since inception. Returns on Class C shares will vary due to
differing sales charges.
7 The JP Morgan Emerging Market Bond Index Plus (EMBI+) Index is an
unmanaged, commonly used measure of emerging-market debt total return
performance. The index's performance does not reflect sales charges. All
returns represent past performance which may not be indicative of future
performance. The investment return and principal value of an investment
will fluctuate so that an investor's shares, when redeemed, may be worth
more or less than their original cost.
GROWTH OF $10,000 PERIODS ENDING 11/30
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
EMERGING MARKETS FUND
Phoenix-Goodwin Phoenix-Goodwin
Emerging Markets Emerging Markets
Bond Fund Class A 6 Bond Fund Class B 6 JP Morgan EMBI+ 7
9/5/95 9,525 10,000 10,000
11/30/95 9,944 10,422 10,537
11/30/96 15,928 16,565 15,530
11/30/97 17,826 18,400 17,171
11/30/98 12,977 13,291 15,604
11/30/99 16,303 16,398 18,183
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
9/5/95 (inception of the Fund) in Class A and Class B shares. The total return
for Class A shares reflects the maximum sales charge of 4.75% on the initial
investment. The total return for Class B shares reflects the CDSC charges which
decline from 5% to 0% over a five year period. Performance assumes dividends and
capital gains are reinvested. The performance of other share classes will be
greater or less than that shown based on difference in inception dates, fees and
sales charges.
COUNTRY WEIGHTINGS 11/30/99
As a percentage of total net assets
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Brazil 23%
Argentina 17
Mexico 17
Russia 13
Venezuela 7
United States 3
Netherlands 3
Other 17
24
<PAGE>
Phoenix-Goodwin Emerging Markets Bond Fund
TEN LARGEST HOLDINGS AT NOVEMBER 30, 1999 (AS A PERCENTAGE OF TOTAL NET ASSETS)
1. Republic of Brazil NMB-L Reg 7%, 4/15/09 7.0%
FOREIGN GOVERNMENT SECURITY
2. United Mexican States Global Bond
11.375%, 9/15/16 6.2%
FOREIGN GOVERNMENT SECURITY
3. Brazil MYDFA Trust Certificates 5.3%
FOREIGN GOVERNMENT SECURITY
4. Republic of Argentina RegS 11.75%, 2/12/07 4.0%
FOREIGN GOVERNMENT SECURITY
5. Republic of Argentina Bearer FRB
6.81%, 3/31/05 4.0%
FOREIGN GOVERNMENT SECURITY
6. Republic of Venezuela 13.625%, 8/15/18 3.9%
FOREIGN GOVERNMENT SECURITY
7. Republic of Brazil FLRB-L Bearer 5%, 4/15/09 3.7%
FOREIGN GOVERNMENT SECURITY
8. Republic of Argentina 11.75%, 4/7/09 3.4%
FOREIGN GOVERNMENT SECURITY
9. Russia Principal Loans 2.9%
FOREIGN GOVERNMENT SECURITY
10. Russian Federation 144A 12.75%, 6/24/28 2.7%
FOREIGN GOVERNMENT SECURITY
INVESTMENTS AT NOVEMBER 30, 1999
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ---------- -----------
CORPORATE BONDS--0.3%
TELECOMMUNICATIONS (LONG DISTANCE)--0.3%
Metromedia International Group, Inc.
10.50%, 9/30/07 .......................... NR $ 756 $ 377,778
- -----------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $794,850) 377,778
- -----------------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--75.0%
ALGERIA--2.6%
Algeria Tranche 3 1.125%, 3/4/10(h) ...... NR 300,000 1,541,322
Algeria Tranche 3 6%, 3/4/10 ............. NR 2,000 1,430,000
-----------
2,971,322
-----------
ARGENTINA--15.6%
Republic of Argentina 11.75%, 4/7/09 ..... B 4,000 3,897,500
Republic of Argentina Bearer FRB
6.813%, 3/31/05(b) ....................... B 5,280 4,612,080
Republic of Argentina Bocon Pro1 M1, PIK
interest capitalization, 2.786%, 4/1/07(b)(d)(e) BBB- 3,585 2,435,981
Republic of Argentina 9.75%, 9/19/27 ..... B 3,000 2,505,000
Republic of Argentina RegS
11.75%, 2/12/07(e) ....................... B 5,300 4,684,484
-----------
18,135,045
-----------
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- --------- -----------
BRAZIL--22.5%
Brazil MYDFA Trust Certificates RegS
6.8125%, 9/15/07(b) ...................... NR $ 8,241 $ 6,202,056
Republic of Brazil Global Bearer
14.5%, 10/15/09 .......................... B 1,000 1,042,500
Republic of Brazil 6%, 9/15/13 ........... B 3,733 2,501,324
Republic of Brazil FLRB Bearer
5%, 4/15/09(b) ........................... B 6,200 4,231,500
Republic of Brazil C Bond, PIK interest
capitalization, 8%, 4/15/14(b) ........... B 1,820 1,236,906
Republic of Brazil DCB-L Euro
7%, 4/15/12(b) ........................... B 2,500 1,676,562
Republic of Brazil NMB-L 7%, 4/15/09(b) .. B 1,500 1,129,687
Republic of Brazil NMB-L Reg
7%, 4/15/09(b) ........................... B 10,800 8,133,750
-----------
26,154,285
-----------
BULGARIA--2.0%
Republic of Bulgaria FLIRB Bearer Series A
2.75%, 7/28/12(b) ........................ B 1,606 1,128,866
Republic of Bulgaria FLIRB Reg A
2.75%, 7/28/12(b) ........................ B 1,250 878,125
Republic of Bulgaria FLIRB Series B
3.25%, 7/28/12(b) ........................ B 508 356,921
-----------
2,363,912
-----------
See Notes to Financial Statements
25
<PAGE>
Phoenix-Goodwin Emerging Markets Bond Fund
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ---------- -----------
COLOMBIA--1.1%
Republic of Colombia 9.75%, 4/23/09 ...... Ba $ 1,500 $ 1,317,188
-----------
ECUADOR--1.3%
Republic of Ecuador 4%, 2/28/25(b)(f) .... Caa 2,000 702,500
Republic of Ecuador Series Disc
0%, 2/28/25(f) ........................... Caa 2,000 773,750
-----------
1,476,250
-----------
IVORY COAST--0.5%
Ivory Coast PDI Series F 1.90%, 3/29/18(i) NR 606 23,968
Ivory Coast FLIRB Series FRF
2%, 3/29/18(i) ........................... NR 15,950 514,145
-----------
538,113
-----------
MEXICO--9.7%
United Mexican States 6.63%, 12/31/19(l)(n) Ba 8,250 1,049,501
United Mexican States Global Bond
11.375%, 9/15/16 ......................... Ba 6,500 7,166,250
United Mexican States Global Bond
11.50%, 5/15/26 .......................... Ba 1,500 1,737,375
United Mexican States NMB
6.76%, 3/25/05(b) ........................ Ba 1,375 1,292,500
-----------
11,245,626
-----------
NIGERIA--0.7%
Nigeria Promissory Notes Series RC
5.092%, 1/5/10 ........................... NR 1,271 824,646
PERU--1.2%
Republic of Peru FLIRB 3.75%, 3/17/17(b) . Ba 2,400 1,399,500
RUSSIA--10.4%
City of St Petersburg RegS 9.5%, 6/18/02 . Caa 2,000 1,290,000
Russia Principal Loans PIK interest
capitalization 0%, 6/24/08(f) ............ NR 25,000 3,406,250
Russia Treasury Bill OFZ Linked Notes
14%, 9/12/01(g) .......................... NR 52,885 891,320
Russian Federal Loan Bond OFZ Series 25022
15%, 2/23/00(g) .......................... NR 25,556 899,724
Russian Federal Loan Bond OFZ Series 25030
0%, 12/15/01(g) .......................... NR 4,679 48,280
Russian Federal Loan Bond OFZ Series 27001
25%, 2/6/02(b)(g) ........................ NR 1,365 25,050
Russian Federal Loan Bond OFZ Series 27002
25%, 5/22/02(b)(g) ....................... NR 1,365 23,521
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ---------- -----------
RUSSIA--CONTINUED
Russian Federal Loan Bond OFZ Series 27003
25%, 6/5/02(b)(g) ........................ NR $ 1,365 $ 23,358
Russian Federal Loan Bond OFZ
Series 27004 25%, 9/18/02(b)(g) ......... NR 1,365 22,070
Russian Federal Loan Bond OFZ
Series 27005 25%, 10/9/02(b)(g) .......... NR 1,365 21,313
Russian Federal Loan Bond OFZ
Series 27006 25%, 1/22/03(b)(g) .......... NR 1,365 20,337
Russian Federal Loan Bond OFZ
Series 27007 25%, 2/5/03(b)(g) ........... NR 1,365 20,199
Russian Federal Loan Bond OFZ
Series 27008 25%, 5/21/03(b)(g) ......... NR 1,365 19,826
Russian Federal Loan Bond OFZ
Series 27009 25%, 6/4/03(b)(g) ........... NR 1,365 19,749
Russian Federal Loan Bond OFZ
Series 27010 25%, 9/17/03(b)(g) .......... NR 1,365 19,059
Russian Federal Loan Bond OFZ
Series 27011 25%, 10/8/03(b)(g) .......... NR 1,365 18,604
Russian Federal Loan Bond OFZ
Series 28001 25%, 1/21/04(b)(g) .......... NR 1,365 18,426
Russian Federation 144A 12.75%,
6/24/28(c) ............................... B 5,000 3,087,500
Russian Federation RegS 9.25%, 11/27/01 .. B 1,000 737,500
Russian Federation RegS 12.75%, 6/24/28 .. B 2,500 1,543,750
-----------
12,155,836
-----------
TURKEY--0.9%
Republic of Turkey 11.875%, 11/5/04 ...... B 1,000 1,023,750
VENEZUELA--6.5%
Republic of Venezuela 13.625%, 8/15/18 ... B 5,000 4,475,000
Republic of Venezuela FLIRB Series A
6.875%, 3/31/07(b) ....................... B 714 548,210
Republic of Venezuela FLIRB Series B
6.875%, 3/31/07(b) ....................... B 1,786 1,370,525
Republic of Venezuela NMB-A
6.438%, 12/18/05(b) ...................... B 1,529 1,208,258
-----------
7,601,993
-----------
- -------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(IDENTIFIED COST $87,305,172) 87,207,466
- -------------------------------------------------------------------------------
See Notes to Financial Statements
26
<PAGE>
Phoenix-Goodwin Emerging Markets Bond Fund
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ---------- -----------
FOREIGN CORPORATE BONDS--10.3% 1
ARGENTINA--0.8%
Imasac SA RegS 11%,5/2/05
(Iron & Steel) ........................... B $ 1,500 $ 892,500
BRAZIL--0.9%
Localiza Rent a Car 10.25%, 10/1/05 (Services
(Commercial & Consumer)) ................. B 1,500 1,072,500
COLOMBIA--0.3%
Transtel Pass-Thru Trust 12.50%, 11/1/07
(Communications Equipment) ............... B 500 280,000
MEXICO--5.7%
Azteca Holdings SA 11%, 6/15/02
(Broadcasting (Television, Radio & Cable)) B 1,000 867,500
International de Ceramica S.A.
9.75%, 8/1/02 (Household Furniture &
Appliances) .............................. NR 2,000 1,540,000
Nacional Finaniciera SNC 22%, 5/20/02
(Financial (Diversified))(k) ............. NR 20,000 2,198,794
Transporte Maritma Yankee Senior Notes
10%, 11/15/06 (Truckers) ................. Ba 1,300 1,020,500
Vicap SA 11.375%, 5/15/07
(Housewares) ............................. Ba 1,100 1,014,750
-----------
6,641,544
-----------
NETHERLANDS--2.6%
Astra O/S Fin BV Asiiij Float 6.50%, 6/30/05
(Automobiles) ............................ NR 2,061 1,319,194
Mosenergo Finance 8.375%, 10/9/02
(Financial (Diversified))(d) ............. CCC 2,500 1,725,000
-----------
3,044,194
-----------
- -----------------------------------------------------------------------------
TOTAL FOREIGN CORPORATE BONDS
(IDENTIFIED COST $11,467,595) 11,930,738
- -----------------------------------------------------------------------------
SHARES VALUE
---------- ----------
FOREIGN COMMON STOCKS--7.7%
ARGENTINA--1.1%
Banco de Galicia y Buenos Aires SA de CV
Sponsored ADR (Banks (Money Center)) ................ 60,112 $ 1,228,539
HUNGARY--0.7%
Magyar Tavkozlesi Rt. Sponsored ADR
(Telecommunications (Long Distance) ................. 25,700 775,819
INDONESIA--0.3%
PT Telekomunikasi Indonesia Sponsored
ADR (Telecommunications (Long
Distance) ........................................... 42,500 358,594
MEXICO--1.3%
Cemex S.A. de C.V.Sponsored ADR
(Construction (Cement & Aggregates) ................. 20,000 491,250
Telefonos de Mexico S.A. Sponsored ADR
(Telecommunications (Long Distance)) ................ 11,700 1,082,981
-----------
1,574,231
-----------
RUSSIA--2.5%
Lukoil Holding Sponsored ADR (Oil (Domestic
Integrated)) ........................................ 50,000 1,712,500
Surgutneftegaz Sponsored ADR (Oil
(International Integrated)) ......................... 1 30,000 1,235,000
-----------
2,947,500
-----------
SINGAPORE--0.2%
Asia Pulp & Paper Co., Ltd. Sponsored ADR
(Paper & Forest Products)(m) ........................ 23,200 197,200
TAIWAN--0.6%
Taiwan Semiconductor Manufacturing Co.,
Ltd. Sponsored ADR (Electronics
(Semiconductors)) ................................... 20,000 716,250
TURKEY--0.7%
Haci Omer Sabanchi Holding AS ADR
(Conglomerates) ..................................... 1 00,000 805,000
VENEZUELA--0.3%
Compania Anonima Nacional Telefonos de
Venezuela - ADR (Telecommunications
(Long Distance)) .................................... 15,000 359,063
- -----------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $8,418,956) 8,962,196
- -----------------------------------------------------------------------------
See Notes to Financial Statements
27
<PAGE>
Phoenix-Goodwin Emerging Markets Bond Fund
SHARES VALUE
---------- ----------
MUTUAL FUNDS--1.7%
HONG KONG--0.3%
Tracker Fund of Hong Kong (Financial
(Diversified))(m) ................................... 150,000 $ 294,537
UNITED STATES--1.4%
Morgan Stanley Dean Witter India Investment
Fund (Financial (Diversified))(m) ................... 39,300 530,550
Webs - Japan Index Series (Financial
(Diversified)) ...................................... 33,000 503,250
Webs - Malaysia Index Series (Financial
(Diversified)) ...................................... 45,000 241,875
Webs - Singapore Index Series (Financial
(Diversified)) ...................................... 43,000 360,125
-----------
1,635,800
-----------
- -----------------------------------------------------------------------------
TOTAL MUTUAL FUNDS
(IDENTIFIED COST $1,910,451) 1,930,337
- -----------------------------------------------------------------------------
WARRANTS--1.0%
First Com Corp. 144A Warrants(c) .................... 70,000 1,207,500
- -----------------------------------------------------------------------------
TOTAL WARRANTS
(IDENTIFIED COST $0) 1,207,500
- -----------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--96.0%
(IDENTIFIED COST $109,897,024) 111,616,015
- -----------------------------------------------------------------------------
PAR
VALUE
(000) VALUE
---------- ----------
SHORT TERM OBLIGATIONS--1.2%
FEDERAL AGENCY SECURITIES--1.2%
Federal Home Loan Mortgage Corp.
Discount Note 5.61%, 12/1/99 ........................ $ 1,445 $ 1,445,000
- -----------------------------------------------------------------------------
TOTAL SHORT TERM OBLIGATIONS
(IDENTIFIED COST $1,445,000) 1,445,000
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS--97.2%
(IDENTIFIED COST $111,342,024) 113,061,015(a)
Cash and receivables, less liabilities--2.8% 3,251,210
------------
NET ASSETS--100.0% $116,312,225
============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $9,649,022 and gross
depreciation of $8,030,860 for federal income tax purposes. At November 30,
1999, the aggregate cost of securities for federal income tax purposes was
$111,442,853
(b) Variable or step coupon security; interest rate shown reflects the rate
currently in effect.
(c) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At November 30,
1999, these securities amounted to a value of $4,295,000 or 3.7% of net
assets.
(d) As rated by Standard & Poors, Fitch or Duff & Phelps.
(e) Par value represents Argentine Pesos.
(f) Securities in default.
(g) Par value represents Russian Rubles.
(h) Par value represents Japanese Yens.
(i) Par value represents Euro.
(j) Par value represents Turkish Liras rounded in millions.
(k) Par value represents Mexican Pesos.
(l) Rights incorporated as a unit.
(m) Non-income producing.
(n) Par value represents French Francs.
See Notes to Financial Statements
28
<PAGE>
Phoenix-Goodwin Emerging Markets Bond Fund
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
ASSETS
Investment securities at value
(Identified cost $111,342,024) $113,061,015
Foreign currency at value
(Identified cost $540,200) 536,883
Net unrealized appreciation on forward
foreign currency contracts 59,950
Receivables
Investment securities sold 17,313,149
Dividends and interest 2,539,208
Fund shares sold 139,415
Prepaid expense 1,522
------------
Total assets 133,651,142
------------
LIABILITIES
Custodian 39,013
Payables
Investment securities purchased 16,792,003
Fund shares repurchased 233,570
Investment advisory fee 71,822
Distribution fee 61,887
Transfer agent fee 27,242
Financial agent fee 10,340
Trustees' fee 4,258
Accrued expenses 98,782
------------
Total liabilities 17,338,917
------------
NET ASSETS $116,312,225
============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $160,495,907
Undistributed net investment income 1,088,309
Accumulated net realized loss (47,041,028)
Net unrealized appreciation 1,769,037
------------
NET ASSETS $116,312,225
============
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $54,848,923) 7,129,598
Net asset value per share $7.69
Offering price per share $7.69/(1-4.75%) $8.07
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $58,453,075) 7,694,088
Net asset value and offering price per share $7.60
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $3,010,227) 394,454
Net asset value and offering price per share $7.63
STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1999
INVESTMENT INCOME
Interest $ 18,113,849
Dividends 27,744
Foreign taxes withheld (752)
-------------
Total investment income 18,140,841
-------------
EXPENSES
Investment advisory fee 700,590
Distribution fee, Class A 115,593
Distribution fee, Class B 449,257
Distribution fee, Class C 22,491
Financial agent fee 110,201
Transfer agent 196,275
Custodian 60,748
Printing 46,778
Professional 29,628
Trustees 15,167
Registration 31,232
Miscellaneous 33,107
-------------
Total expenses 1,811,067
Custodian fees paid indirectly (1,520)
-------------
Net expenses 1,809,547
-------------
NET INVESTMENT INCOME 16,331,294
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 1,174,456
Net realized gain on foreign currency transactions 38,778
Net change in unrealized appreciation (depreciation) on
investments 4,685,310
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions 87,512
-------------
NET GAIN ON INVESTMENTS 5,986,056
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $22,317,350
=============
See Notes to Financial Statements
29
<PAGE>
Phoenix-Goodwin Emerging Markets Bond Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
11/30/99 11/30/98
------------- -------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $16,331,294 $13,088,232
Net realized gain (loss) 1,213,234 (43,148,647)
Net change in unrealized appreciation (depreciation) 4,772,822 1,569,334
------------- -------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 22,317,350 (28,491,081)
------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (7,416,057) (5,581,936)
Net investment income, Class B (7,042,619) (3,942,930)
Net investment income, Class C (347,153) (54,521)
Net realized gains, Class A -- (1,201,906)
Net realized gains, Class B -- (697,910)
Net realized gains, Class C -- --
In excess of net investment income, Class A -- (6,002,330)
In excess of net investment income, Class B -- (3,485,367)
In excess of net investment income, Class C -- --
Tax return of capital, Class A -- (1,984,297)
Tax return of capital, Class B -- (1,343,438)
Tax return of capital, Class C -- (14,524)
------------- -------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (14,805,829) (24,309,159)
------------- -------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (3,556,835 and 2,907,456 shares, respectively) 25,142,286 27,208,118
Net asset value of shares issued from reinvestment of distributions
(351,670 and 1,029,832 shares, respectively) 2,480,258 10,935,153
Cost of shares repurchased (2,574,617 and 3,428,413 shares, respectively) (18,206,934) (34,342,515)
------------- -------------
Total 9,415,610 3,800,756
------------- -------------
CLASS B
Proceeds from sales of shares (3,425,208 and 3,220,244 shares, respectively) 24,265,446 30,065,148
Net asset value of shares issued from reinvestment of distributions
(446,690 and 492,109 shares, respectively) 3,123,762 4,864,295
Cost of shares repurchased (1,401,581 and 1,516,158 shares, respectively) (9,790,280) (13,762,067)
------------- -------------
Total 17,598,928 21,167,376
------------- -------------
CLASS C
Proceeds from sales of shares (462,019 and 170,364 shares, respectively) 3,316,816 1,509,747
Net asset value of shares issued from reinvestment of distributions
(17,681 and 2,515 shares, respectively) 126,396 19,878
Cost of shares repurchased (253,300 and 4,825 shares, respectively) (1,856,218) (46,423)
------------- -------------
Total 1,586,994 1,483,202
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 28,601,532 26,451,334
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS 36,113,053 (26,348,906)
NET ASSETS
Beginning of period 80,199,172 106,548,078
------------- -------------
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME AND DISTRIBUTIONS
IN EXCESS OF NET INVESTMENT INCOME OF $1,088,309 AND ($50,697), RESPECTIVELY) $116,312,225 $ 80,199,172
============ =============
</TABLE>
See Notes to Financial Statements
30
<PAGE>
Phoenix-Goodwin Emerging Markets Bond Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------
FROM
YEAR ENDED NOVEMBER 30 INCEPTION
------------------------------------------ 9/5/95 TO
1999 1998 1997 1996 11/30/95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.20 $12.84 $14.80 $10.18 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 1.23 1.32 1.38(4) 1.26(5) 0.25(4)(5)
Net realized and unrealized gain (loss) 0.40 (4.22) 0.17 4.56 0.18
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 1.63 (2.90) 1.55 5.82 0.43
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (1.14) (1.00) (1.28) (1.20) (0.25)
Dividends from net realized gains -- (0.23) (2.23) -- --
Dividends in excess of net investment income -- (1.16) -- -- --
Return of capital -- (0.35) -- -- --
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (1.14) (2.74) (3.51) (1.20) (0.25)
------ ------ ------ ------ ------
Change in net asset value 0.49 (5.64) (1.96) 4.62 0.18
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 7.69 $ 7.20 $12.84 $14.80 $10.18
====== ====== ====== ====== ======
Total return(1) 25.63% (27.20)% 11.91% 60.18% 4.40%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $54,849 $41,725 $67,875 $29,661 $12,149
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.56%(7) 1.43% 1.40%(7) 1.50% 1.50%(2)
Net investment income 17.96% 13.74% 9.90% 10.41% 10.48%(2)
Portfolio turnover 326% 405% 614% 378% 38%(3)
CLASS B
------------------------------------------------------
FROM
YEAR ENDED NOVEMBER 30 INCEPTION
------------------------------------------ 9/5/95 TO
1999 1998 1997 1996 11/30/95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.13 $12.77 $14.78 $10.18 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 1.17 1.23 1.26(4) 1.19(6) 0.22(4)(6)
Net realized and unrealized gain (loss) 0.40 (4.18) 0.18 4.53 0.20
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 1.57 (2.95) 1.44 5.72 0.42
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (1.10) (0.97) (1.22) (1.12) (0.24)
Dividends from net realized gains -- (0.23) (2.23) -- --
Dividends in excess of net investment income -- (1.16) -- -- --
Return of capital -- (0.33) -- -- --
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (1.10) (2.69) (3.45) (1.12) (0.24)
------ ------ ------ ------ ------
Change in net asset value 0.47 (5.64) (2.01) 4.60 0.18
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 7.60 $ 7.13 $12.77 $14.78 $10.18
====== ====== ====== ====== ======
Total return (1) 24.52% (27.86)% 11.07% 58.94% 4.22%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $58,453 $37,270 $38,673 $9,713 $596
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.31%(7) 2.20% 2.15%(7) 2.25% 2.25%(2)
Net investment income 17.04% 12.98% 9.14% 9.79% 10.29%(2)
Portfolio turnover 326% 405% 614% 378% 38%(3)
<FN>
(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.
(7) The ratio of expenses to average net assets excludes the effect of expense
offsets for custodian fees; if expense offsets were included, the ratio
would not significantly differ.
</FN>
</TABLE>
See Notes to Financial Statements
31
<PAGE>
Phoenix-Goodwin Emerging Markets Bond Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS C
------------------
FROM
YEAR INCEPTION
ENDED 3/26/98 TO
11/30/99 11/30/98
Net asset value, beginning of period $ 7.17 $12.25
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 1.17 0.85(4)
Net realized and unrealized gain (loss) 0.39 (5.10)
------ ------
TOTAL FROM INVESTMENT OPERATIONS 1.56 (4.25)
------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (1.10) (0.66)
Dividends from net realized gains -- --
Dividends in excess of net investment income -- --
Return of capital -- (0.17)
------ ------
TOTAL DISTRIBUTIONS (1.10) (0.83)
------ ------
Change in net asset value 0.46 (5.08)
------ ------
NET ASSET VALUE, END OF PERIOD $ 7.63 $ 7.17
====== ======
Total return(1) 24.40% (35.33)%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $3,010 $1,205
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.31%(5) 2.29%(2)
Net investment income 16.47% 15.59%(2)
Portfolio turnover 326% 405%(3)
(1) Maximum sales charges are not reflected in the total return calculation.
(2) Annualized.
(3) Not annualized.
(4) Computed using average shares outstanding.
(5) The ratio of expenses to average net assets excludes the effect of expense
offsets for custodian fees; if expense offsets were included, the ratio
would not significantly differ.
See Notes to Financial Statements
32
<PAGE>
PHOENIX-GOODWIN TAX-EXEMPT BOND FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGER, TIMOTHY M. HEANEY, CFA
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Fund is appropriate for investors seeking to maximize tax-exempt yield
and after-tax total return. Investors should note that income from the Fund may
be subject to state and local taxes and the alternative minimum tax, if
applicable.
Q: HOW DID THE FUND PERFORM OVER THE LAST 12 MONTHS?
A: For the fiscal year ended November 30, 1999, Class A shares returned (3.66%)
and Class B shares returned (4.35%) compared with a return of (1.08%) for the
Lehman Brothers Municipal Bond Index.1 All performance figures assume
reinvestment of distributions and exclude the effect of sales charges.
Q: HOW WOULD YOU ASSESS THE GENERAL ECONOMY?
A: The U.S. economy appears on target to set a post-war record of nine years of
uninterrupted economic expansion as it heads into the new millennium. The job
market remains tight; inflation appears to be in check; and the global economic
turmoil experienced in 1998 appears to have subsided. The national unemployment
rate, which ended the third quarter at 4.2%, is the lowest the country has seen
since the late 1960s. Inflation, as measured by the Consumer Price Index (CPI),
ended the third quarter at approximately 2.5%. CPI has increased by about 1%
over the last 12 months, and the Federal Reserve (Fed) has responded by raising
rates three times for a total of 75 basis points.
Despite the recent tightening of monetary policy by the Fed, the economy
remains resilient as labor markets are tight and consumer spending is strong.
Labor markets are being stretched to capacity, which could force labor costs
higher and put further pressure on prices. The willingness of consumers to
borrow and spend is providing the economy the necessary fuel to stay healthy.
The Fed is expected to remain vigilant to ensure that inflation does not
overheat and disrupt the economy.
In summary, the economy appears to be in good shape. Economic growth should
continue at its current pace, with a chance of slowing if labor constraints
heighten. Inflation should remain under control, given the Fed's watchful eye
and willingness to tighten monetary policy if necessary.
Q: HOW DID FACTORS IN THE MUNICIPAL BOND MARKET AFFECT THE FUND?
A: The municipal bond market slightly underperformed the U.S. Treasury market
over the past 12 months due primarily to soft demand from individual investors
in the face of rising interest rates. Municipal yields are higher by almost 1%
across the yield curve, while total returns are negative for maturities 10 years
and longer. Issuance of municipal bonds is down approximately 20% compared with
1998, as higher interest rates have made it less economical for issuers to
refinance older, higher-cost debt. As such, refundings are down over 50% from
1998, and total 1999 issuance is expected to be 25% lower than last year, which
should bode well for the market heading into next year. On the demand side,
retail buying has picked up as municipal yields approach 6%, while institutional
buying, which includes mutual funds and insurance companies,
1 THE LEHMAN BROTHERS MUNICIPAL BOND INDEX IS AN UNMANAGED, COMMONLY USED
MEASURE OF LONG-TERM, INVESTMENT-GRADE TAX-EXEMPT MUNICIPAL BOND TOTAL
RETURN PERFORMANCE. THE INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT AND
DOES NOT REFLECT INVESTMENT MANAGEMENT OR OTHER MUTUAL FUND-RELATED FEES.
See Notes to Financial Statements
33
<PAGE>
PHOENIX-GOODWIN TAX-EXEMPT BOND FUND (CONTINUED)
has slowed. With long municipal bonds yielding almost 100% of long U.S. Treasury
bonds, municipal securities are very attractive as we head into the year 2000.
Within the Fund, we continue to emphasize higher quality issues, as the
yield premium between higher quality bonds and lower quality bonds remains
narrow by historical standards. The Fund currently has an average quality rating
of AAA, with slightly over 63% of its issues rated AA or higher. The Fund
remains well diversified both geographically and by sector (revenue, general
obligation, and pre-refunded issues).
Q: WHAT IS YOUR OUTLOOK GOING FORWARD?
A: As we move forward into the year 2000, factors that could drive the relative
value of municipal bonds over the year include: the U.S. inflation outlook and
the Fed's response to monetary policy, U.S. Treasury rates and the global
investment markets, legislative developments in the electric utility industry
and their impact on tax laws for municipal utility bonds, and lastly, the
municipal market's balance of supply and demand for municipal bonds. Finally,
should the U.S. stock market continue to experience the same pace of
appreciation that it has enjoyed over the past few years, money could continue
to be diverted away from the tax-exempt sector, thus putting some additional
pressure on municipals. Despite these potential risks, the municipal market
still represents good relative value at current levels, especially given that
the ratio of municipal yields to U.S. Treasury yields is close to 100%. Assuming
the domestic economy remains healthy and municipal supply remains manageable, we
would expect strong relative performance from the municipal market over the next
year.
DECEMBER 8, 1999
34
<PAGE>
Phoenix-Goodwin Tax-Exempt Bond Fund
AVERAGE ANNUAL TOTAL RETURNS 1 PERIOD ENDING 11/30/99
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR 5 YEARS 10 YEARS TO 11/30/99 DATE
------ ----- ----- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Class A Shares at NAV 2 (3.66)% 6.20% 6.26% -- --
Class A Shares at POP 3 (8.24) 5.17 5.74 -- --
Class B Shares at NAV 2 (4.35) 5.43 -- 3.52% 3/16/94
Class B Shares with CDSC 4 (8.02) 5.43 -- 3.52 3/16/94
Lehman Brothers Municipal Bond Index 7 (1.08) 7.54 7.06 Note 5 Note 5
</TABLE>
1 Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
2 "NAV" (Net Asset Value) total returns do not include the effect of any
sales charge.
3 "POP" (Public Offering Price) total returns include the effect of the
maximum front-end 4.75% sales charge.
4 CDSC (contingent deferred sales charge) is applied to redemptions of
certain classes of shares that do not have a sales charge applied at the
time of purchase. CDSC charges for B shares decline from 5% to 0% over a
five year period.
5 Index performance is 5.42% for Class B (since 2/28/94).
6 This chart illustrates POP returns on Class A shares for ten years. Returns
on Class B shares will vary due to differing sales charges.
7 The Lehman Brothers Municipal Bond Index is an unmanaged, commonly used
measure of long-term, investment-grade tax-exempt municipal bond total
return performance. The index's performance does not reflect sales charges.
All returns represent past performance which may not be indicative of future
performance. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their original cost.
GROWTH OF $10,000 PERIODS ENDING 11/30
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
TAX-EXEMPT BOND FUND
Phoenix-Goodwin
Tax-Exempt Lehman Muni
Bond Fund Class A 6 Bond Index 7
11/30/89 9,525 10,000
11/30/90 10,143 10,770
11/29/91 11,089 11,875
11/30/92 12,411 13,067
11/30/93 13,998 14,514
11/30/94 12,941 13,752
11/30/95 15,513 16,351
11/29/96 16,180 17,314
11/28/97 17,158 18,556
11/30/98 18,145 19,996
11/30/99 17,481 19,780
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
11/30/89 in Class A shares and reflects the maximum sales charge of 4.75% on the
initial investment. Performance assumes dividends and capital gains are
reinvested. The performance of other share classes will be greater or less than
that shown based on differences in inception dates, fees and sales charges.
STATE WEIGHTINGS 11/30/99
As a percentage of bond holdings
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Pennsylvania 9%
New York 9
Georgia 9
Illinois 8
California 8
Virginia 6
Texas 5
Other 46
See Notes to Financial Statements
35
<PAGE>
Phoenix-Goodwin Tax-Exempt Bond Fund
INVESTMENTS AT NOVEMBER 30, 1999
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ---------- -----------
MUNICIPAL BONDS--97.4%
ALASKA--1.3%
Valdez Marine Terminal Revenue
7%, 12/1/25(c) .......................... AA+ $1,125 $1,192,500
ARIZONA--1.1%
Pima County Sewer Revenue Pre-refunded
6.75%, 7/1/15 (FGIC Insured) ............ AAA 460 481,850
Pima County Sewer Revenue Unrefunded
6.75%, 7/1/15 (FGIC Insured) ............ AAA 540 560,925
----------
1,042,775
----------
ARKANSAS--1.2%
Drew County Public Facilities Board Series A-2
7.90%, 8/1/11 (FNMA Collateralized) ..... Aaa(b) 211 222,473
Jacksonville Residential Housing Facilities
Board Series A-2 7.90%, 1/1/11 (FNMA
Collateralized) ......................... Aaa(b) 364 380,941
Lonoke County Residential Housing Facilities
Board Series A-2 7.90%, 4/1/11 (FNMA
Collateralized) ......................... Aaa(b) 345 369,598
Stuttgart Public Facilities Board Series A-2
7.90%, 9/1/11 (FNMA Collateralized) ..... Aaa(b) 171 177,824
----------
1,150,836
----------
CALIFORNIA--7.5%
Pittsburg Redevelopment Agency Series A
4.625%, 8/1/21 (AMBAC Insured) .......... AAA 1,650 1,383,937
Riverside County Series B
8.625%, 5/1/16 (GNMA Collateralized) .... AAA 4,300 5,719,000
----------
7,102,937
----------
COLORADO--3.0%
Arapahoe County Capital Improvement
Series E Pre-refunded 6.90%, 8/31/15 .... Aaa(b) 2,500 2,828,125
CONNECTICUT--4.0%
Mashantucket Western Pequot Tribe
Special Revenue Series A Pre-refunded 144A
6.50%, 9/1/05(d) ........................ AAA 845 922,106
Mashantucket Western Pequot Tribe
Special Revenue Series A Pre-refunded 144A
6.50%, 9/1/06(d) ........................ AAA 495 543,881
Mashantucket Western Pequot Tribe Special
Revenue Series A 144A 5.50%, 9/1/28(d) .. Baa(b) 1,500 1,312,500
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ---------- -----------
CONNECTICUT--CONTINUED
Mashantucket Western Pequot Tribe Special
Revenue Series B 144A 5.60%, 9/1/09(d) .. Baa(b) $1,000 983,750
----------
3,762,237
----------
GEORGIA--8.8%
Atlanta Water and Wastewater Revenue
Series A 5%, 11/1/29 (FGIC Insured) ..... AAA 2,000 1,715,000
Atlanta Water and Wastewater Revenue
Series A 5%, 11/1/38 (FGIC Insured) ..... AAA 1,000 837,500
Cartersville Development Authority Revenue
5.625%, 5/1/09 .......................... A+ 2,000 2,035,000
Georgia Municipal Electric Authority Power
Revenue Series Z 5.50%, 1/1/20
(FGIC Insured) .......................... AAA 2,000 1,940,000
Georgia State General Obligation Series A
7.45%, 1/1/09 ........................... AAA 1,500 1,762,500
----------
8,290,000
----------
ILLINOIS--8.0%
Chicago Board of Education Series A
6%, 1/1/20 (MBIA Insured) ............... AAA 500 509,375
Chicago Gas Supply Revenue Series B
7.50%, 3/1/15 ........................... AA- 1,000 1,027,060
Chicago O'Hare International Airport Special
Facility Revenue 8.85%, 5/1/18 .......... BB+ 835 885,543
Cook County Series A 5%, 11/15/28
(FGIC Insured) .......................... AAA 2,000 1,692,500
Illinois Development Finance Authority
Pollution Control Revenue Series B
7.60%, 9/1/13 ........................... A+ 2,000 2,054,180
Illinois Health Facilities Authority Revenue
Series C 7%, 4/1/08 (FSA Insured) ....... AAA 1,100 1,236,125
Illinois Housing Development Authority
Residential Mortgage Revenue Series A
7%, 8/1/17 .............................. AA 70 70,214
Metropolitan Pier & Exposition Authority
Revenue Unrefunded 6.50%, 6/15/07
(FGIC Insured) .......................... AAA 30 32,250
----------
7,507,247
----------
See Notes to Financial Statements
36
<PAGE>
Phoenix-Goodwin Tax-Exempt Bond Fund
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ---------- -----------
INDIANA--3.7%
Indianapolis Public Local Improvement
Revenue Series C 0%, 1/1/03 ............. A(b) $2,500 $2,162,500
Indianapolis Public Local Improvement
Revenue Series A 0%, 2/1/05 ............. Aa(b) 1,765 1,370,081
----------
3,532,581
----------
KENTUCKY--3.2%
Kentucky State Turnpike Authority Economic
Development Revenue 0%, 1/1/10
(FGIC Insured) .......................... AAA 3,300 1,947,000
Perry County Solid Waste Disposal Revenue
7%, 6/1/24 .............................. NR 1,000 1,035,000
----------
2,982,000
----------
LOUISIANA--1.5%
Louisiana Environmental Facilities Community
Development Revenue 5.25%, 12/1/18
(AMBAC Insured) ......................... AAA 1,500 1,406,250
St. Tammany Public Transportation Financing
Authority Revenue Series A 7%, 6/1/02
(FNMA Collateralized) ................... Aaa(b) 47 48,174
----------
1,454,424
----------
MARYLAND--0.6%
Baltimore General Obligation 7%, 10/15/09
(MBIA Insured) .......................... AAA 500 573,750
MASSACHUSETTS--3.8%
Massachusetts Bay Transportation Authority
Revenue Series B 6.20%, 3/1/16 .......... AA- 1,000 1,050,000
Massachusetts State Industrial Financing
Agency Revenue 0%, 8/1/05 ............... A+ 1,100 827,750
Massachusetts State Turnpike Authority
Highway Revenue 5%, 1/1/39
(AMBAC Insured) ......................... AAA 2,000 1,667,500
----------
3,545,250
----------
MICHIGAN--2.7%
St. Johns Public Schools 5.10%, 5/1/25
(FGIC Insured) .......................... AAA 1,000 898,750
Williamston Michigan Community School
General Obligation 5.50%, 5/1/25
(MBIA Insured) .......................... AAA 1,725 1,640,906
----------
2,539,656
----------
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ---------- -----------
MISSISSIPPI--1.7%
Lowndes County Solid Waste Disposal &
Pollution Control Revenue Project A
6.80%, 4/1/22 ........................... A $1,450 $1,578,687
NEVADA--1.8%
Clark County School District General Obligation
Series B 0%, 6/1/03 (MBIA Insured) ...... AAA 2,000 1,697,500
NEW JERSEY--1.7%
Camden County Municipal Utilities Authority
Sewer Revenue Bond Series B 0%, 9/1/11
(FGIC Insured) .......................... AAA 3,000 1,582,500
NEW YORK--9.0%
New York State Dormitory Authority Revenue
Series U Pre-refunded 6.375%, 7/1/08 .... BBB+ 575 613,094
Niagara Falls Bridge Commission Toll Revenue
Series B 5.25%, 10/1/15 (FGIC Insured) .. AAA 4,000 3,870,000
Port Authority of New York & New Jersey
Special Obligation Revenue 6.75%, 10/1/11 NR 3,000 3,161,250
Suffolk County Industrial Development
Agency Revenue 5.50%, 1/1/23 ............ NR 1,000 878,750
----------
8,523,094
----------
NORTH CAROLINA--1.6%
North Carolina Municipal Power Agency
Revenue Bond 6%, 1/1/09 (AMBAC
Insured) ................................ AAA 1,385 1,469,831
PENNSYLVANIA--9.3%
Delaware Valley Regional Finance Authority
Revenue Series B 5.70%, 7/1/27 (AMBAC
Insured) ................................ AAA 2,000 1,945,000
New Castle Area Hospital Authority Revenue
Series A 6.50%, 11/15/09 ................ Baa(b) 1,000 1,013,750
Pennsylvania Economic Development Financing
Authority Resource Recovery Revenue
Series A 6.40%, 1/1/09 .................. BBB- 1,500 1,520,625
Pennsylvania State Finance Authority Revenue
6.60%, 11/1/09 .......................... A 4,000 4,280,000
----------
8,759,375
----------
SOUTH CAROLINA--2.4%
Spartanburg Sanitation Sewer Revenue
Series B 5%, 3/1/24 ..................... AAA 2,520 2,220,750
TENNESSEE--1.6%
Metropolitan Government Nashville & Davidson
County Health & Educational Facilities Board
Revenue 6%, 12/1/16 (AMBAC Isured) ...... AAA 1,500 1,556,250
See Notes to Financial Statements
37
<PAGE>
Phoenix-Goodwin Tax-Exempt Bond Fund
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ---------- -----------
TEXAS--5.0%
Alliance Airport Authority Special Facilities
Revenue 7%, 12/1/11 ..................... BBB- $1,100 $1,192,125
Colorado River Municipal District Water
Revenue Pre-refunded 8.25%, 1/1/15 ...... NR 540 562,432
Hurst Euless Bedford Independent School
District General Obligation 4.75%, 8/15/28 AAA 2,000 1,625,000
San Antonio Electric & Gas Revenue
5%, 2/1/12 .............................. AA 20 19,300
San Antonio Electric & Gas Revenue
Pre-refunded 5%, 2/1/12 ................. AA 15 14,588
Texas State Public Finance Authority Building
Revenue 6.25%, 8/1/09 (MBIA Insured) .... AAA 1,250 1,350,000
----------
4,763,445
----------
VIRGINIA--6.3%
Pittsylvania County Industrial Development
Authority Revenue Series A 7.30%, 1/1/04 NR 935 961,881
Pittsylvania County Industrial Development
Authority Revenue Series A 7.45%, 1/1/09 NR 3,000 3,142,500
Upper Occoquan Regional Sewer Authority
Revenue Series A 5.15%, 7/1/20
(MBIA Insured) .......................... AAA 2,000 1,867,500
----------
5,971,881
----------
WEST VIRGINIA--3.2%
Upshur County Solid Waste Disposal Revenue
7%, 7/15/25 ............................. NR 2,000 2,070,000
West Virginia State Housing Development
Fund Revenue 6.625%, 7/1/20
(FHA Insured) ........................... AA 1,000 1,001,620
----------
3,071,620
----------
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ---------- -----------
WISCONSIN--1.7%
Wisconsin State Clean Water Revenue
Series 1 6.875%, 6/1/11 ................. AA+ $ 750 $ 852,188
Wisconsin State Health & Education Facilities
Authority Revenue 5.125%, 8/15/28 ....... A- 1,000 805,000
----------
1,657,188
----------
OTHER TERRITORIES--1.7%
Puerto Rico Commonwealth Highway &
Transportation Authority Revenue Series V
6.625%, 7/1/12 .......................... A 1,500 1,584,375
- -----------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $89,169,932) 91,940,814
- -----------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--97.4%
(IDENTIFIED COST $89,169,932) 91,940,814
- -----------------------------------------------------------------------------
SHORT TERM OBLIGATIONS--1.5%
FEDERAL AGENCY SECURITIES--1.5%
Federal Home Loan Mortgage Corp.
Discount Note 5.61%, 12/1/99 ............ 1,420 1,420,000
- -----------------------------------------------------------------------------
TOTAL SHORT TERM OBLIGATIONS
(IDENTIFIED COST $1,420,000) 1,420,000
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS--98.9%
(IDENTIFIED COST $90,589,932) 93,360,814(a)
Cash and receivables, less liabilities--1.1% 1,059,543
----------
NET ASSETS--100.0% ...................... $94,420,357
==========
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $4,467,906 and gross
depreciation of $1,604,930 for federal income tax purposes. At November 30,
1999, the aggregate cost of securities for federal income tax purposes was
$90,497,838.
(b) As rated by Moodys, Fitch or Duff & Phelps.
(c) Variable or step coupon security; 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 buyers. At November 30, 1999, these
securities amounted to a value of $3,762,237 or 4.0% of net assets.
At November 30, 1999, 44.2% of the net assets in the fund are backed by
insurance of financial institutions and financial guaranty assurance agencies.
Insurers with a concentration greater than 10% of net assets are as follows:
FGIC, 16.5%.
See Notes to Financial Statements
38
<PAGE>
Phoenix-Goodwin Tax-Exempt Bond Fund
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
ASSETS
Investment securities at value
(Identified cost $90,589,932) $ 93,360,814
Cash 651
Receivables
Interest 1,381,576
Fund shares sold 12,250
Prepaid expense 2,127
-------------
Total assets 94,757,418
-------------
LIABILITIES
Payables
Dividend distributions 70,945
Fund shares repurchased 120,587
Investment advisory fee 35,153
Distribution fee 23,038
Transfer agent fee 19,485
Financial agent fee 10,208
Trustees' fee 4,258
Accrued expenses 53,387
-------------
Total liabilities 337,061
-------------
NET ASSETS $94,420,357
=============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $95,075,415
Distributions in excess of net investment income (70,944)
Accumulated net realized loss (3,354,996)
Net unrealized appreciation 2,770,882
-------------
NET ASSETS $94,420,357
=============
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $88,769,711) 8,623,917
Net asset value per share $10.29
Offering price per share $10.29/(1-4.75%) $10.80
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $5,650,646) 546,267
Net asset value and offering price per share $10.34
STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1999
INVESTMENT INCOME
Interest $ 5,533,088
-----------
Total investment income 5,533,088
-----------
EXPENSES
Investment advisory fee 473,237
Distribution fee, Class A 246,387
Distribution fee, Class B 66,090
Financial agent fee 116,414
Transfer agent 101,381
Professional 28,160
Registration 23,574
Printing 23,347
Custodian 17,025
Trustees 17,000
-----------
Total expenses 1,112,615
-----------
NET INVESTMENT INCOME 4,420,473
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (2,933,039)
Net realized loss on future contracts (40,144)
Net change in unrealized appreciation (depreciation)
on investments (5,382,317)
-----------
NET LOSS ON INVESTMENTS (8,355,500)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(3,935,027)
===========
See Notes to Financial Statements
39
<PAGE>
Phoenix-Goodwin Tax-Exempt Bond Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
11/30/99 11/30/98
------------- ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 4,420,473 $ 5,725,389
Net realized gain (loss) (2,973,183) (409,566)
Net change in unrealized appreciation (depreciation) (5,382,317) 1,555,273
------------- ------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (3,935,027) 6,871,096
------------- ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (4,019,480) (5,342,324)
Net investment income, Class B (222,784) (259,422)
Net realized gains, Class A -- (96,887)
Net realized gains, Class B -- (4,637)
In excess of net investment income, Class A (713,626) (566,555)
In excess of net investment income, Class B (39,554) (27,512)
------------- ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (4,995,444) (6,297,337)
------------- ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (1,486,070 and 3,799,813 shares, respectively) 15,836,073 42,705,753
Net asset value of shares issued from reinvestment of distributions
(241,813 and 286,921 shares,respectively) 2,604,501 3,230,781
Cost of shares repurchased (2,685,504 and 5,491,445 shares, respectively) (28,673,824) (61,903,573)
------------- ------------
Total (10,233,250) (15,967,039)
------------- ------------
CLASS B
Proceeds from sales of shares (131,152 and 259,511 shares, respectively) 1,434,341 2,940,057
Net asset value of shares issued from reinvestment of distributions
(9,781 and 12,310 shares, respectively) 105,939 139,134
Cost of shares repurchased (216,909 and 166,434 shares, respectively) (2,327,791) (1,874,018)
------------- ------------
Total (787,511) 1,205,173
------------- ------------
DECREASE IN NET ASSETS FROM SHARE TRANSACTIONS (11,020,761) (14,761,866)
------------- ------------
NET DECREASE IN NET ASSETS (19,951,232) (14,188,107)
NET ASSETS
Beginning of period 114,371,589 128,559,696
------------- ------------
END OF PERIOD (INCLUDING DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME OF
($70,944) AND ($114,135), RESPECTIVELY) $ 94,420,357 $114,371,589
============= ============
</TABLE>
See Notes to Financial Statements
40
<PAGE>
Phoenix-Goodwin Tax-Exempt Bond Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------
YEAR ENDED NOVEMBER 30
-----------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.21 $11.17 $11.28 $11.40 $10.09
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.52 0.57 0.59 0.60 0.61
Net realized and unrealized gain (loss) (0.92) 0.20 0.05 (0.12) 1.34
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS (0.40) 0.77 0.64 0.48 1.95
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.44) (0.53) (0.59) (0.60) (0.61)
Dividends in excess of net investment income (0.08) (0.11) -- -- --
Dividends from net realized gains -- (0.09) (0.16) -- (0.03)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (0.52) (0.73) (0.75) (0.60) (0.64)
------ ------ ------ ------ ------
Change in net asset value (0.92) 0.04 (0.11) (0.12) 1.31
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $10.29 $11.21 $11.17 $11.28 $11.40
====== ====== ====== ====== ======
Total return(1) (3.66)% 5.75% 6.04% 4.30% 19.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $88,770 $107,371 $122,763 $136,558 $147,821
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.01% 0.97% 0.96% 0.94% 0.97%
Net investment income (loss) 4.25% 4.77% 5.36% 5.42% 5.65%
Portfolio turnover 18% 14% 15% 27% 25%
CLASS B
----------------------------------------------------
YEAR ENDED NOVEMBER 30
----------------------------------------------------
<S> <C> <C> <C> <C> <C>
1999 1998 1997 1996 1995
Net asset value, beginning of period $11.25 $11.22 $11.32 $11.44 $10.12
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.45 0.48 0.50 0.52 0.53
Net realized and unrealized gain (loss) (0.93) 0.19 0.06 (0.12) 1.35
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS (0.48) 0.67 0.56 0.40 1.88
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.37) (0.45) (0.50) (0.52) (0.53)
Dividends in excess of net investment income (0.06) (0.10) -- -- --
Dividends from net realized gains -- (0.09) (0.16) -- (0.03)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (0.43) (0.64) (0.66) (0.52) (0.56)
------ ------ ------ ------ ------
Change in net asset value (0.91) 0.03 (0.10) (0.12) 1.32
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $10.34 $11.25 $11.22 $11.32 $11.44
====== ====== ====== ====== ======
Total return(1) (4.35)% 4.97% 5.13% 3.60% 19.07%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $5,651 $7,001 $5,797 $4,762 $3,142
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.76% 1.69% 1.71% 1.69% 1.72%
Net investment income (loss) 3.51% 3.98% 4.60% 4.68% 4.90%
Portfolio turnover 18% 14% 15% 27% 25%
<FN>
(1) Maximum sales charges are not reflected in the total return calculation.
</FN>
</TABLE>
See Notes to Financial Statements
41
<PAGE>
PHOENIX-SENECA MID CAP FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGERS, GAIL SENECA, PH.D., AND RICHARD
LITTLE, CFA
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Fund is appropriate for investors seeking long-term capital appreciation
by investing primarily in stocks of dynamic, rapidly growing companies and
focusing on strong relative earnings growth. The Fund may invest in companies of
all sizes, and investors should note that small-company investing involves added
risks, including greater price volatility, less liquidity, and increased
competitive threat.
Q: HOW HAS THE FUND PERFORMED DURING THE LAST 12 MONTHS?
A: For the one-year reporting period that ended November 30, 1999, Class A
shares returned 42.14% and Class B shares returned 41.06% compared with a return
of 21.37% for the S&P MidCap 400 Index 1. Investors should consider all
performance periods and the effect of the past 12 months' strong stock market
when evaluating funds. All performance figures assume reinvestment of dividends
and exclude the effect of sales charges.
Q: COULD YOU PROVIDE A BRIEF REVIEW OF THE MARKET?
A: In this year's volatile and spotty market, growth stocks, led by the largest
technology companies and Internet stocks, were the clear winners. This year's
growth stock advantage continues a two-year trend, during which "growth" has
outperformed "value" by a wide margin. As a result, today's growth stocks sport
their highest valuations ever.
We believe these valuations are sustainable. The corporate fundamentals of
"growth" stocks today are excellent. Real returns on equity are at all-time
highs, meaning that companies are leveraging their capital effectively. Revenue
and earnings growth of the largest technology companies is in double-digit
territory, a remarkable achievement for multibillion-dollar enterprises.
Research and development spending and current capital spending are robust,
suggesting investment for future growth.
The moderation of the boom/bust cycle in the overall economy should also
help sustain generous growth stock valuations. Due largely to technology
improvements, inventory-led booms and busts have been notably absent for the
last 10 years. Instead, the economy oscillates modestly, pausing only for short
and shallow downturns. In this more tempered business cycle environment, it is
difficult for cyclical companies to gain relative advantage. In contrast, growth
stocks prosper.
Q: WHAT FACTORS AFFECTED PERFORMANCE?
A: Good stock selection and the outperformance of "growth" sectors, such as
technology, helped produce these strong results. Our equity style concentrates
on growth companies that are currently profitable and should be able to expand
their profitability going forward. Some of the best performing stocks in the
fund included VERITAS Software, a maker of computer storage management products,
which was our largest holding, and Xilinx, a producer of programmable
semiconductors, which was our third largest holding.
The portfolio also benefited from limited exposure to the financial
services and health-care sectors, which continued to underperform. Two of our
most disappointing stocks were DLJ, a financial services company, and Wellpoint,
a managed health-care company.
1 THE S&P MIDCAP 400 INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF TOTAL
RETURN PERFORMANCE OF MID-CAPITALIZATION COMPANIES. THE INDEX IS NOT AVAILABLE
FOR DIRECT INVESTMENT.
42
<PAGE>
PHOENIX-SENECA MID CAP FUND (CONTINUED)
Q: WHAT IS YOUR OUTLOOK FOR THE NEAR TERM?
A: Aiming to keep the economy from overheating, the Fed has raised interest
rates three-quarters of a percentage point since June. Rate increases usually
put a damper on stock indices but not this year. That is because the technology
and Internet stocks that have been propelling the market do not rely on banks or
the bond markets for their capital needs. And, so the Fed finds itself in a
corner. On the one hand, inflation does not seem to be in evidence. But, the
economy is considerably stronger than the Fed would like it to be, largely
because of consumer spending, which is being driven, in large part, by the
rising stock market.
We believe the Fed will probably raise rates again, possibly in February by
25 basis points and maybe even again in April if consumer spending continues to
drive the economy. On the positive side, we expect corporate profits to remain
strong, driven by technology. And, assuming any pre-emptive rate increases have
the desired effect, it is likely that the Fed will take a relaxed or at least
neutral bias in the second half of the year.
Our equity style concentrates on growth companies that are currently
profitable and should be able to expand their profitability going forward. We
believe this style will continue to lead the market in the next millennium, but,
of course, past performance is not a guarantee of future performance.
DECEMBER 21, 1999
43
<PAGE>
Phoenix-Seneca Mid Cap Fund
AVERAGE ANNUAL TOTAL RETURNS 1 PERIOD ENDING 11/30/99
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR 5 YEARS 10 YEARS TO 11/30/99 DATE
------ ------- -------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Class A Shares at NAV 2 42.14% 18.93% 17.54% -- --
Class A Shares at POP 3 35.39 17.77 16.97 -- --
Class B Shares at NAV 2 41.06 18.03 -- 17.04% 7/18/94
Class B Shares with CDSC 4 37.06 18.03 -- 17.04 7/18/94
S&P MidCap 400 Index 6 21.37 21.86 17.06 19.57% 7/18/94
</TABLE>
1 Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
2 "NAV" (Net Asset Value) total returns do not include the effect of any
sales charge.
3 "POP" (Public Offering Price) total returns include the effect of the
maximum front-end 4.75% sales charge.
4 CDSC (contingent deferred sales charge) is applied to redemptions of
certain classes of shares that do not have a sales charge applied at the
time of purchase. CDSC charges for B shares decline from 5% to 0% over a
five year period.
5 This chart illustrates POP returns on Class A shares for ten years. Returns
on Class B shares will vary due to differing sales charges.
6 The S&P MidCap 400 Index is an unmanaged, commonly used measure of mid cap
stock total return performance.The index's performance does not reflect
sales charges.
All returns represent past performance which may not be indicative of future
performance. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their original cost.
GROWTH OF $10,000 PERIODS ENDING 11/30
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
SENECA MID-CAP FUND
Phoenix-Seneca S&P Mid Cap
Mid Cap Fund Class A5 400 Index
11/30/89 $9,525 $10,000
11/30/90 11,169 9,288
11/29/91 15,724 13,191
11/30/92 18,309 15,972
11/30/93 19,946 17,977
11/30/94 20,151 17,972
11/30/95 25,768 23,810
11/29/96 29,251 28,280
11/28/97 31,627 36,047
11/30/98 33,728 39,795
11/30/99 47,940 48,298
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
11/30/89 in Class A shares and reflects the maximum sales charge of 4.75% on the
initial investment. Performance assumes dividends and capital gains are
reinvested. The performance of other share classes will be greater or less than
that shown based on differences in inception dates, fees and sales charges.
SECTOR WEIGHTINGS 11/30/99
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
As a percentage of equity holdings
Technology 57%
Consumer Cyclicals 16
Consumer Staples 8
Health-Care 7
Energy 6
Financials 3
Basic Materials 2
Other 1
44
<PAGE>
Phoenix-Seneca Mid Cap Fund
TEN LARGEST HOLDINGS AT NOVEMBER 30, 1999 (AS A PERCENTAGE OF TOTAL NET ASSETS)
1. VERITAS Software Corp. 4.9%
A MAKER OF COMPUTER STORAGE MANAGEMENT PRODUCTS
2. MedImmune, Inc. 4.6%
BIOTECHNOLOGY COMPANY
3. Xilinx, Inc. 4.4%
A PRODUCER OF PROGRAMMABLE SEMICONDUCTORS
4. LSI Logic Corp. 4.4%
MANUFACTURES INTEGRATED CIRCUITS
5. KLA-Tencor Corp. 4.3%
DEVELOPS ELECTRO-OPTICAL TEST SYSTEMS
6. SDL, Inc. 4.3%
MANUFACTURES SEMICONDUCTORS AND CIRCUITS
7. Comverse Technology, Inc. 4.3%
DEVELOPS AND MARKETS COMPUTER SYSTEMS
8. AMFM, Inc. 4.2%
OWNS AND OPERATES 92 FM AND 33 AM RADIO STATIONS
9. Gemstar International Group Ltd. 4.2%
DEVELOPS SYSTEMS RELATED TO TELEVISION PROGRAMMING
10. Outdoor Systems, Inc. 4.1%
OPERATES MALL AND TRANSIT ADVERTISING DISPLAYS
INVESTMENTS AT NOVEMBER 30, 1999
SHARES VALUE
---------- -----------
COMMON STOCK--97.0%
BANKS (REGIONAL)--3.3%
UnionBanCal Corp .................................... 254,730 $11,224,041
BIOTECHNOLOGY--4.6%
MedImmune, Inc.(b) .................................. 129,120 15,518,610
BROADCASTING (TELEVISION, RADIO & CABLE)--8.3%
AMFM, Inc.(b) ....................................... 199,800 14,123,362
EchoStar Communications Corp.(b) .................... 211,500 13,972,219
-----------
28,095,581
-----------
COMMUNICATIONS EQUIPMENT--9.6%
American Tower Corp., Class A(b) .................... 359,560 9,393,505
Comverse Technology, Inc.(b) ........................ 120,000 14,505,000
General Motors Corp. Class H(b) ..................... 87,500 7,492,187
TeleCorp PCS, Inc.(b) ............................... 33,550 1,209,897
-----------
32,600,589
-----------
COMPUTERS (HARDWARE)--3.8%
Copper Mountain Networks, Inc.(b) ................... 43,870 3,660,403
Extreme Networks, Inc.(b) ........................... 140,080 9,297,810
-----------
12,958,213
-----------
COMPUTERS (SOFTWARE & SERVICES)--11.6%
Ariba, Inc.(b) ...................................... 35,000 6,319,687
Exodus Communications, Inc.(b) ...................... 84,540 9,114,469
Redback Networks Inc.(b) ............................ 52,500 7,346,719
VERITAS Software Corp.(b) ........................... 181,440 16,613,100
-----------
39,393,975
-----------
SHARES VALUE
---------- -----------
ELECTRONICS (SEMICONDUCTORS)--20.6%
LSI Logic Corp.(b) .................................. 244,540 $14,779,386
PMC-Sierra, Inc.(b) ................................. 114,990 11,851,157
RF Micro Devices, Inc.(b) ........................... 203,800 13,845,663
SDL, Inc.(b) ........................................ 89,190_ 14,515,673
Xilinx, Inc.(b) ..................................... 168,170 15,051,215
-----------
70,043,094
-----------
EQUIPMENT (SEMICONDUCTOR)--10.4%
KLA-Tencor Corp.(b) ................................. 173,620 14,681,741
Lam Research Corp.(b) ............................... 125,000 9,703,125
Teradyne, Inc.(b) ................................... 250,000 10,890,625
-----------
35,275,491
-----------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--2.6%
VISX, Inc.(b) ....................................... 115,000 8,919,688
OIL & GAS (DRILLING & EQUIPMENT)--5.7%
Nabors Industries, Inc.(b) .......................... 355,690 9,448,015
Weatherford International, Inc.(b) .................. 287,000 10,027,063
-----------
19,475,078
-----------
PAPER & FOREST PRODUCTS--1.3%
Smurfit-Stone Container Corp.(b) .................... 222,700 4,273,056
RETAIL (COMPUTERS & ELECTRONICS)--3.2%
Tandy Corp .......................................... 140,970 10,801,826
RETAIL (SPECIALTY-APPAREL)--2.4%
TJX Companies, Inc. (The) ........................... 305,600 8,002,900
See Notes to Financial Statements
45
<PAGE>
Phoenix-Seneca Mid Cap Fund
SHARES VALUE
---------- -----------
SERVICES (ADVERTISING/MARKETING)--4.1%
Outdoor Systems, Inc.(b) ............................ 316,450 $14,082,025
SERVICES (COMMERICAL & CONSUMER)--5.5%
Crown Castle International Corp.(b) ................. 223,200 4,701,150
Gemstar International Group, Ltd.(b) ................ 125,000 14,093,750
-----------
18,794,900
-----------
- -----------------------------------------------------------------------------
TOTAL COMMON STOCK
(IDENTIFIED COST $231,422,771) 329,459,067
- -----------------------------------------------------------------------------
FOREIGN COMMON STOCKS--0.4%
PAPER & FOREST PRODUCTS--0.4%
Grupo Industrial Durango S.A. (Mexico)(b) ........... 128,600 1,374,413
- -----------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $1,231,077) 1,374,413
- -----------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--97.4%
(IDENTIFIED COST $232,653,848) 330,833,480
- -----------------------------------------------------------------------------
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ----- -----------
SHORT-TERM OBLIGATIONS--3.8%
FEDERAL AGENCY SECURITIES--2.4%
Federal Home Loan Bank Discount Note
5.57% 12/1/99 ........................... $1,860 $ 1,860,000
Federal Home Loan Mortgage Corp.
Discount Note 5.61%, 12/1/99 ............ 6,155 6,155,000
------------
8,015,000
------------
COMMERCIAL PAPER--1.5%
Exxon Imperial, Inc. 5.50%,12/2/99 ...... A-1+ 5,000 4,999,236
- -----------------------------------------------------------------------------
TOTAL SHORT TERM OBLIGATIONS
(IDENTIFIED COST $13,014,236) ........... 13,014,236
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS--101.3%
(IDENTIFIED COST $245,668,084) .......... 343,847,716(a)
Cash and receivables, less liabilities--(1.3%) (4,410,326)
------------
NET ASSETS--100.0% ...................... $339,437,390
============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $101,207,738 and gross
depreciation of $3,028,106 for federal income tax purposes. At November 30,
1999, the aggregate cost of securities for federal income tax purposes was
$245,668,084.
(b) Non-income producing.
See Notes to Financial Statements
46
<PAGE>
Phoenix-Seneca Mid Cap Fund
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
ASSETS
Investment securities at value
(Identified cost $245,668,084) $ 343,847,716
Short-Term investments held as collateral for
loaned securities 11,807,420
Cash 5,659
Receivables
Fund shares sold 151,986
Interest and dividends 16,785
Prepaid expense 5,644
--------------
Total assets 355,835,210
--------------
LIABILITIES
Payables
Collateral on securities loaned 11,807,420
Investment securities purchased 2,437,331
Fund shares repurchased 1,525,248
Investment advisory fee 208,912
Transfer agent fee 118,699
Distribution fee 81,202
Financial agent fee 19,994
Trustees' fee 4,258
Accrued expenses 194,756
--------------
Total liabilities 16,397,820
--------------
NET ASSETS 339,437,390
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest 214,654,997
Accumulated net realized gain 26,602,761
Net unrealized appreciation 98,179,632
--------------
NET ASSETS $339,437,390
==============
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $320,459,977) 14,166,276
Net asset value per share $22.62
Offering price per share $22.62/(1-4.75%) $23.75
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $18,977,413) 885,335
Net asset value and offering price per share $21.44
STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1999
INVESTMENT INCOME
Dividends $ 960,571
Interest 681,309
Security lending income 41,168
------------
Total investment income 1,683,048
------------
EXPENSES
Investment advisory fee 2,261,328
Distribution fee, Class A 712,470
Distribution fee, Class B 165,224
Financial agent fee 242,473
Transfer agent 679,651
Printing 194,303
Professional 47,023
Custodian 31,071
Registration 26,919
Trustees 17,000
Miscellaneous 17,352
------------
Total expenses 4,394,814
Custodian fees paid indirectly (8,980)
------------
Net expenses 4,385,834
------------
NET INVESTMENT LOSS (2,702,786)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 29,467,611
Net change in unrealized appreciation (depreciation) on
investments 81,075,738
------------
NET GAIN ON INVESTMENTS 110,543,349
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $107,840,563
============
See Notes to Financial Statements
47
<PAGE>
Phoenix-Seneca Mid Cap Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
11/30/99 11/30/98
---------- -----------
<S> <C> <C>
FROM OPERATIONS
Net investment loss $ (2,702,786) $ (467,524)
Net realized gain 29,467,611 61,746,081
Net change in unrealized appreciation (depreciation) 81,075,738 (38,514,321)
------------ ------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 107,840,563 22,764,236
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A (57,917,557) (33,084,355)
Net realized gains, Class B (3,411,419) (1,776,186)
------------ ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (61,328,976) (34,860,541)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (3,941,723 and 2,824,332 shares, respectively) 75,023,915 55,807,991
Net asset value of shares issued from reinvestment of distributions
(3,259,092 and 1,780,474 shares, respectively) 55,010,407 32,263,501
Cost of shares repurchased (7,070,190 and 8,014,004 shares, respectively) (133,053,542) (157,423,669)
------------ ------------
Total (3,019,220) (69,352,177)
------------ ------------
CLASS B
Proceeds from sales of shares (118,234 and 92,246 shares, respectively) 2,053,280 1,729,101
Net asset value of shares issued from reinvestment of distributions
(195,577 and 96,993 shares, respectively) 3,150,463 1,705,266
Cost of shares repurchased (246,309 and 295,559 shares, respectively) (4,272,459) (5,608,396)
------------ ------------
Total 931,284 (2,174,029)
------------ ------------
DECREASE IN NET ASSETS FROM SHARE TRANSACTIONS (2,087,936) (71,526,206)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS 44,423,651 (83,622,511)
NET ASSETS
Beginning of period 295,013,739 378,636,250
------------ ------------
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME OF $0 AND $0, RESPECTIVELY.) $339,437,390 $295,013,739
============ ============
</TABLE>
See Notes to Financial Statements
48
<PAGE>
Phoenix-Seneca Mid Cap Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------
YEAR ENDED NOVEMBER 30
------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $19.90 $20.64 $21.65 $22.03 $18.03
INCOME FROM INVESTMENT OPERATIONS(4)
Net investment income (loss) (0.16)(1) 0.01 (0.02)(1) (0.03)(1) 0.05(1)
Net realized and unrealized gain (loss) 7.10 1.18 1.52 2.53 4.74
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 6.94 1.19 1.50 2.50 4.79
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- -- (0.06)
Dividends from net realized gains (4.22) (1.93) (2.51) (2.88) (0.73)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (4.22) (1.93) (2.51) (2.88) (0.79)
------ ------ ------ ------ ------
Change in net asset value 2.72 (0.74) (1.01) (0.38) 4.00
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $22.62 $19.90 $20.64 $21.65 $22.03
====== ====== ====== ====== ======
Total return(2) 42.14% 6.64% 8.12% 13.52% 27.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $320,460 $279,326 $360,053 $451,474 $487,674
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.41%(3) 1.30% 1.33% 1.35% 1.42%
Net investment income (loss) (0.86)% (0.10)% (0.08)% (0.17)% 0.28%
Portfolio turnover 177% 379% 161% 242% 218%
CLASS B
------------------------------------------------------
YEAR ENDED NOVEMBER 30
------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $19.18 $20.11 $21.30 $21.85 $17.97
INCOME FROM INVESTMENT OPERATIONS(4)
Net investment income (loss) (0.28)(1) (0.18) (0.16)(1) (0.18)(1) (0.12)(1)
Net realized and unrealized gain (loss) 6.76 1.18 1.47 2.51 4.75
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 6.48 1.00 1.31 2.33 4.63
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- -- (0.02)
Dividends from net realized gains (4.22) (1.93) (2.50) (2.88) (0.73)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (4.22) (1.93) (2.50) (2.88) (0.75)
------ ------ ------ ------ ------
Change in net asset value 2.26 (0.93) (1.19) (0.55) 3.88
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $21.44 $19.18 $20.11 $21.30 $21.85
====== ====== ====== ====== ======
Total return(2) 41.06% 5.80% 7.27% 12.75% 26.92%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $18,977 $15,688 $18,583 $17,599 $10,908
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.16%(3) 2.04% 2.08% 2.11% 2.18%
Net investment income (loss) (1.61)% (0.85)% (0.85)% (0.92)% (0.58)%
Portfolio turnover 177% 379% 161% 242% 218%
<FN>
(1) Computed using average shares outstanding.
(2) Maximum sales charges are not reflected in total return calculation.
(3) The ratio of expenses to average net assets excludes the effect of expense
offsets for custodian fees; if expense offsets were included, the ratio
would not significantly differ.
(4) Distributions are made in accordance with the prospectus; however, class
level per share income from investment operations may vary from anticipated
results depending on the timing of share purchases and redemptions.
</FN>
</TABLE>
See Notes to Financial Statements
49
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1999
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, five Funds are offered for sale: International Fund, Real Estate
Securities Fund, Emerging Markets Bond Fund, Tax-Exempt Bond Fund and Mid Cap
Fund. Each Fund has distinct investment objectives. The International Fund seeks
a high total return consistent with reasonable risk through investment in an
internationally diversified portfolio of equity securities. The Real Estate
Securities Fund seeks capital appreciation and income with approximately equal
emphasis. The Emerging Markets Bond Fund seeks to achieve high current income
with a secondary objective of long-term capital appreciation. The Tax-Exempt
Bond Fund seeks as high a level of current income exempt from federal income
taxation as is consistent with preservation of capital. The Mid Cap Fund seeks
as its investment objective long-term appreciation of capital.
The Trust offers both Class A and Class B shares on each Fund and one
additional class of shares, Class C on International Fund and Emerging Markets
Bond Fund. Class A shares are sold with a front-end sales charge of up to 4.75%.
Class B shares are sold with a contingent deferred sales charge which declines
from 5% to zero depending on the period of time the shares are held. Class C
shares are sold with a 1% contingent deferred sales charge if redeemed within
one year of purchase. Each class of shares has identical voting, dividend,
liquidation and other rights and the same terms and conditions, except that each
class bears different distribution expenses and has exclusive voting rights with
respect to its distribution plan. Income and expenses of each Fund are borne pro
rata by the holders of each class 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 Fund 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 Fund which amortizes both premiums and discounts over the life
of the respective securities using the effective interest method.
C. INCOME TAXES:
Each Fund is treated as a separate taxable entity. It is the policy of each
Fund in the Trust to comply with the requirements of the Internal Revenue Code
(the "Code"), applicable to regulated investment companies, and to distribute
substantially all of its taxable and tax-exempt income to its shareholders. In
addition, each Fund intends to distribute an amount sufficient to avoid
imposition of any excise tax under Section 4982 of the Code. Therefore, no
provision for federal income taxes or excise taxes has been made.
D. DISTRIBUTIONS TO SHAREHOLDERS:
Distributions are recorded by each Fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences include the treatment of non-taxable dividends, expiring
capital loss carryforwards, foreign currency gain/loss, partnerships, 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 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.
50
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1999 (CONTINUED)
F. FORWARD CURRENCY CONTRACTS:
The International Fund, Emerging Markets Bond Fund and Mid Cap Fund 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 Fund as an unrealized gain (or loss). When the
contract is closed or offset with the same counterparty, the Fund 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. Each Fund (other than Real Estate
Securities Fund) 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 Funds are 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 Funds agree 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 daily variation margin and are recorded by the Fund as
unrealized gains or losses. When the contract is closed, the Fund 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 Fund 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 Fund (other than Real Estate Securities Fund), 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 Fund will realize a gain or loss upon the expiration or closing of the
option transaction. Gains and losses on written options are reported separately
in the Statement of Operations. When a written option is exercised, the proceeds
on sales or amounts paid are adjusted by the amount of premium received. Options
written are reported as a liability in the Statement of Assets and Liabilities
and subsequently marked to market to reflect the current value of the option.
The risk associated with written options is that the change in value of options
contracts may not correspond to the change in value of the hedged instruments.
In addition, losses may arise from changes in the value of the underlying
instruments, or if a liquid secondary market does not exist for the contracts.
The Funds may purchase options which are included in the Fund's Schedule of
Investments and subsequently marked to market to reflect the current value of
the option. When a purchased option is exercised, the cost of the security is
adjusted by the amount of premium paid. The risk associated with purchased
options is limited to the premium paid.
I. LOAN AGREEMENTS:
The Trust may invest in direct debt instruments which are interests in
amounts owed 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 Fund) loans
securities to qualified brokers through an agreement with State Street Bank &
Trust (the Custodian) and Brown Brothers, Harriman, custodian for the
International Fund. 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
51
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1999 (CONTINUED)
securities or in the foreclosure on collateral. At November 30, 1999, the Trust
had the following market value of security loans and collateral:
Value of
Securities Value of
on Loan Collateral
------------ -------------
Mid Cap Fund ............................. $11,498,566 $11,807,420
K. EXPENSES:
Expenses incurred by the Trust with respect to any two or more Funds are
allocated in proportion to the net assets of each Fund, except where allocation
of direct expense to each Fund or an alternative allocation method can be more
fairly made.
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 Duff & Phelps Investment Management ("DPIM")
Co., an indirect wholly-owned subsidiary of PHL, the Adviser for the Real Estate
Securities Fund, are entitled to a fee, based upon the following annual rates as
a percentage of the average daily net assets of each Fund:
1st $1-2 $2+
$1 Billion Billion Billion
---------- ------- -------
International Fund................ 0.75% 0.70% 0.65%
Real Estate Securities Fund....... 0.75% 0.70% 0.65%
Emerging Markets Bond Fund........ 0.75% 0.70% 0.65%
Tax-Exempt Bond Fund.............. 0.45% 0.40% 0.35%
Mid Cap Fund...................... 0.75% 0.70% 0.65%
The respective Advisers have agreed to reimburse the Real Estate Securities
Fund to the extent that total expenses (excluding interest, taxes, brokerage
fees and commissions, and extraordinary expenses) exceed 1.30% of the average
daily net assets for Class A shares, and 2.05% of the average daily net assets
for Class B shares.
Aberdeen Fund Managers, Inc. ("Aberdeen") is subadvisor to the
International Fund, Aberdeen is a subsidiary of Aberdeen Asset Management PLC.
For its services, Aberdeen is paid a fee by the Adviser equal to 0.375% of the
average daily net assets of the Phoenix International Fund up to $1 billion,
0.35% between $1 billion and $2 billion, and 0.325% in excess of $2 billion.
Seneca Capital Management LLC ("Seneca") is subadvisor to the Mid Cap Fund,
a majority of the equity interests of Seneca is owned by Phoenix Investment
Partners, Ltd. For its services, Seneca is paid a fee by the Adviser ranging
from 0.375% through 0.325% of the average daily net assets of the Mid Cap Fund.
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 $97,677
for Class A shares and deferred sales charges of $391,750 for Class B shares and
$10,658 for Class C shares for the year ended November 30, 1999. 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 and Class C shares applied to the average
daily net assets of each Portfolio. The distributor has advised the Trust that
of the total amount expensed for the year ended November 30, 1999, $1,060,487
was retained by the Distributor and $1,310,508 was paid out to unaffiliated
Participant and $236,380 was paid to W.S. Griffith, an indirect subsidiary of
PHL.
As Financial Agent of the Trust, PEPCO receives a financial agent fee equal
to the sum of (1) the documented cost of fund accounting and related services
provided by PFPC Inc. (subagent to PEPCO), plus (2) the documented cost to PEPCO
to provide financial reporting, tax services and oversight of subagent's
performance. The current fee schedule of PFPC Inc. ranges from 0.085% to 0.0125%
of the average daily net asset values of the Fund. Certain minimum fees and fee
waivers may apply.
PEPCO serves as the Trust's Transfer Agent with State Street Bank and Trust
Company as sub-transfer agent. For the year ended November 30, 1999, transfer
agent fees were $1,462,961 of which PEPCO retained $539,147 which is net of fees
paid to State Street.
At November 30, 1999 PHL and its affiliates held Phoenix Multi-Portfolio
Fund shares which aggregated the following:
Aggregate
Net Asset
Shares Value
--------- -----------
International Fund
--Class C ........................... 7,809 $ 114,402
Real Estate Securities Fund
--Class A ........................... 540,778 6,088,044
--Class B ........................... 12,840 141,754
Emerging Markets Bond Fund
--Class A ........................... 2,083,489 16,042,865
--Class B ........................... 17,508 113,061
Tax-Exempt Bond Fund
--Class A ........................... 280 2,881
52
<PAGE>
PHOENIX MULTI-PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1999 (CONTINUED)
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the year ended November 30, 1999
(excluding U.S. Government and agency securities, short-term securities, futures
contracts and forward currency contracts) aggregated the following:
Purchases Sales
------------ -------------
International Fund ........................ $138,573,761 $188,343,642
Real Estate Securities Fund ............... 7,915,943 17,436,749
Emerging Markets Bond Fund ................ 312,790,341 290,272,126
Tax-Exempt Bond Fund ...................... 18,896,871 31,875,971
Mid Cap Fund .............................. 510,742,458 579,956,383
4. FORWARD CURRENCY CONTRACTS
As of November 30, 1999, the Emerging Market Bond Fund had entered into the
following forward currency contracts which contractually obligate the Fund to
deliver/buy currencies at specified dates:
Net
In Unrealized
Contracts Exchange Settlement Appreciation
To Deliver/Buy For Date Value (Depreciation)
- ------------------ ------------- ------- ---------- --------------
JPY 1,300,000 US 11,194 3/6/00 $ 9,409 $ (1,785)
JPY 164,750,000 US 1,396,444 3/14/00 1,648,870 252,426
JPY (164,920,000) US (1,458,179) 3/14/00 (1,648,870) (190,691)
---------
$ 59,950
=========
JPY = Japanese Yen
US = U.S. Dollar
5. CREDIT RISK
In countries with limited or developing markets, investments may present
greater risks than in more developed markets and the prices of such investments
may be volatile. The consequences of political, social or economic changes in
these markets may have disruptive effects on the market prices of these
investments and the income they generate, as well as a fund's ability to
repatriate such amounts. Given the uncertain economic condition of Russia and
the defaults that have occurred, there is no guarantee that continued payments
on Russian government bonds will be made.
6. CAPITAL LOSS CARRYOVERS
The following Funds have capital loss carryovers which may be used to
offset future capital gains.
Real Estate Emerging Tax-Exempt
Securities Markets Bond
Expiration Date Fund Fund Fund
- --------------- ----------- -------- ----------
2006 ................................ $ 70,513 $42,839,795 $ 381,648
2007 ................................ 1,889,262 3,990,182 2,973,348
----------- ----------- ----------
Total ............................. $1,959,775 $46,829,977 $3,354,996
=========== =========== ==========
7. RECLASS OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, each Fund has recorded
several reclassifications in the capital accounts. These reclassifications have
no impact on the net asset value of the Funds and are designed generally to
present undistributed income and realized gains on a tax basis which is
considered to be more informative to the shareholder. As of November 30, 1999,
the Funds recorded the following reclassifications to increase (decrease) the
accounts listed below:
Capital paid
Undistributed Accumulated in on shares
net investment net realized of beneficial
income gain (loss) interest
-------------- ------------- --------------
International Fund $ 471,438 $ (669,276) $ 197,838
Real Estate Securities Fund 4,061 0 (4,061)
Emerging Markets Bond Fund (386,459) 460,452 (73,993)
Tax-Exempt Bond Fund 618,162 (29,724) (588,438)
Mid Cap Fund 2,702,786 (2,703,765) 979
TAX NOTICE (UNAUDITED)
For the fiscal year ended November 30, 1999, the Tax-Exempt Bond Fund
distributed $4,161,165 of exempt-interest dividends. For the fiscal year ended
November 30, 1999, the following Funds distributed long-term capital gains
dividends as follows:
International Fund............................. $19,429,556
Mid Cap Fund................................... 34,894,348
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.
53
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[GRAPHIC OMITTED]
PRICEWATERHOUSECOOPERS
To the Trustees and Shareholders of
Phoenix Multi-Portfolio Fund
In our opinion, the accompanying statement of assets and liabilities,
including the schedules of investments (except for bond ratings), and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
the Phoenix-Aberdeen International Fund, the Phoenix-Duff & Phelps Real Estate
Securities Fund, the Phoenix-Goodwin Emerging Markets Bond Fund, the
Phoenix-Goodwin Tax-Exempt Bond Fund and the Phoenix-Seneca Mid Cap Fund
(formerly known as Phoenix International Portfolio, Phoenix Real Estate
Securities Portfolio, Phoenix Emerging Markets Bond Portfolio, Phoenix
Tax-Exempt Bond Portfolio and Phoenix Mid Cap Portfolio) (constituting the
Phoenix Multi-Portfolio Fund, hereafter referred to as the "Fund") at November
30, 1999, and the results of each of their operations for the year then ended,
the changes in each of their net assets for each of the two years in the period
then ended and the financial highlights for each of the fiscal periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
November 30, 1999 by correspondence with the custodians and brokers, provide a
reasonable basis for the opinion expressed above.
/S/PRICEWATERHOUSECOOPERS LLP
Boston, Massachusetts
January 14, 2000
54
<PAGE>
RESULTS OF SHAREHOLDER MEETING (UNAUDITED)
A special meeting of Shareholders of the Phoenix Multi-Portfolio Fund was held
on October 27, 1999 to approve the following matters:
1. Fix the number of trustees at twelve and elect such number as detailed
below.
2. Ratification of the selection of PricewaterhouseCoopers LLP as the
Trust's independent auditors for the fiscal year ending November 30, 1999.
On the record date for this meeting, there were 54,871,931 shares outstanding
and 58.32% of the shares outstanding and entitled to vote that were present by
proxy.
NUMBER OF VOTES
FOR WITHHELD
----- ----------
1. Election of Trustees
Robert Chesek 31,336,675 666,831
E. Virgil Conway 31,320,841 682,665
Harry Dalzell-Payne 31,322,152 681,354
Francis E. Jeffries 31,333,522 669,984
Leroy Keith, Jr. 31,348,335 655,171
Philip R. McLoughlin 31,346,097 657,409
Everett L. Morris 31,326,190 677,316
James M. Oates 31,346,182 657,324
Calvin J. Pedersen 31,347,028 656,478
Herbert Roth, Jr. 31,314,269 689,237
Richard E. Segerson 31,349,861 653,645
Lowell P. Weicker, Jr. 31,252,064 751,442
FOR AGAINST ABSTAIN
---------- ------- -------
2. PricewaterhouseCoopers LLP 31,029,934 190,371 783,201
<PAGE>
55
PHOENIX MULTI-PORTFOLIO FUND
101 Munson Street
Greenfield, MA 01301
TRUSTEES
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Francis E. Jeffries
Leroy Keith, Jr.
Philip R. McLoughlin
Everett L. Morris
James M. Oates
Calvin J. Pedersen
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
OFFICERS
Philip R. McLoughlin, President
Michael E. Haylon, Executive Vice President
John F. Sharry, Executive Vice President
Gail P. Seneca, Senior Vice President
James D. Wehr, Senior Vice President
David L. Albrycht, Vice President
Robert S. Driessen, Vice President
Timothy M. Heaney, Vice President
Ron K. Jacks, Vice President
Peter S. Lannigan, Vice President
Richard D. Little, Vice President
William R. Moyer, Vice President
Leonard J. Saltiel, Vice President
Michael Schatt, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
INVESTMENT ADVISERS
Phoenix Investment Counsel, Inc.
56 Prospect Street
Hartford, CT 06115-0480
Duff & Phelps Investment Management Co.
(Phoenix-Duff & Phelps Real Estate Securities Fund)
55 East Monroe Street, Suite 3600
Chicago, IL 60603
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.
(Phoenix-Aberdeen International Fund)
40 Water Street
Boston, MA 02109
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
160 Federal Street
Boston, MA 02110
TRANSFER AGENT
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, CT 06083-2200
HOW TO CONTACT US
The Fund Connection 1-800-243-1574
Customer Service 1-800-243-1574 (option 0)
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
WWW.PHOENIXINVESTMENTS.COM
<PAGE>
PRSRT STD
U.S. Postage
PAID
Andrew
Associates
PHOENIX EQUITY PLANNING CORPORATION
PO Box 2200
Enfield CT 06083-2200
[GRAPHIC OMITTED]
PHOENIX
INVESTMENT PARTNERS
PXP 490 (1/00)
