<PAGE>
Phoenix Investment Partners
SEMIANNUAL REPORT
APRIL 30, 2000
GOODWIN
Phoenix-Goodwin
Multi-Sector Fixed
Income Fund, Inc.
[LOGO]PHOENIX INVESTMENT PARTNERS
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
We are pleased to provide this financial summary for the six months ended
April 30, 2000 for the Phoenix-Goodwin Multi-Sector Fixed Income Fund. If you
have any questions, please call your financial advisor or contact us at
1-800-243-1574 between 8:00 a.m. and 6:00 p.m. Eastern Time, Monday through
Friday, or at www.phoenixinvestments.com.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
APRIL 30, 2000
Mutual funds are not insured by the FDIC; are not
deposits or other obligations of a bank and are not
guaranteed by a bank; and are subject to
investment risks, including possible loss of the
principal invested.
1
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR FIXED INCOME FUND, INC.
INVESTMENTS AT APRIL 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- -------- ------------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--0.1%
U.S. TREASURY BONDS--0.1%
U.S. Treasury Bonds 6.25%, 5/15/30...... AAA $ 250 $ 260,072
---------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES
(IDENTIFIED COST $271,948) 260,072
---------------------------------------------------------------------------
MUNICIPAL BONDS--7.2%
CALIFORNIA--2.7%
Fresno Pension Obligation Taxable 7.80%,
6/1/14.................................. AAA 500 510,000
Oakland Pension Obligation Taxable
Series A 6.95%, 12/15/08................ AAA 3,200 3,084,000
Pasadena Pension Funding Revenue Taxable
Series A 7.10%, 5/15/10................. AAA 1,900 1,843,000
------------
5,437,000
------------
CONNECTICUT--1.2%
Mashantucket Western Pequot Tribe
Revenue Taxable Series A 144A 6.57%,
9/1/13(b)............................... AAA 1,075 991,688
Mashantucket Western Pequot Tribe
Revenue Taxable Series A 6.91%, 9/1/12.. AAA 1,400 1,338,750
------------
2,330,438
------------
FLORIDA--1.0%
University of Miami Exchangeable Revenue
Taxable Series A 7.65%, 4/1/20.......... AAA 2,000 1,937,500
ILLINOIS--1.0%
Illinois Educational Facilities
Authority-Loyola University Revenue
Taxable Series A 7.84%, 7/1/24.......... AAA 2,000 1,972,500
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- -------- ------------
<S> <C> <C> <C>
PENNSYLVANIA--1.3%
Pittsburgh Pension General Obligation
Taxable Series B 6.35%, 3/1/13.......... AAA $ 3,000 $ 2,703,750
---------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $15,203,761) 14,381,188
---------------------------------------------------------------------------
ASSET-BACKED SECURITIES--5.4%
ContiMortgage Home Equity Loan Trust
98-1, B 7.86%, 4/15/29.................. BBB- 8,495 7,018,994
Green Tree Financial Corp. 94-1, B2
7.85%, 4/15/19.......................... Baa(c) 2,000 1,930,830
Pennant CBO Ltd. 1A, D 13.43%,
3/14/11................................. Ba(c) 2,000 1,963,437
---------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $12,568,410) 10,913,261
---------------------------------------------------------------------------
CORPORATE BONDS--21.4%
AEROSPACE/DEFENSE--0.5%
BE Aerospace, Inc. 9.50%, 11/1/08....... B 1,250 1,087,500
BROADCASTING (TELEVISION, RADIO & CABLE)--0.2%
Century Communications Corp. 8.75%,
10/1/07................................. BB- 500 460,000
COMMUNICATIONS EQUIPMENT--3.8%
Earthweb 7%, 1/25/05.................... NR 1,500 900,000
Metromedia Fiber Network, Inc. Series B
10%, 11/15/08........................... B+ 2,000 1,910,000
Metromedia Fiber Network, Inc. 10%
12/15/09 (h)............................ B+ 2,000 1,772,387
Williams Communications Group, Inc.
10.875%, 10/1/09........................ BB- 3,000 3,030,000
------------
7,612,387
------------
COMPUTERS (NETWORKING)--0.7%
Psinet Inc. 11%, 8/1/09................. B- 1,500 1,327,500
</TABLE>
2 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund, Inc.
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- -------- ------------
<S> <C> <C> <C>
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--1.0%
Horseshoe Gaming LLC Series B 9.375%,
6/15/07................................. B+ $ 1,500 $ 1,466,250
Mohegan Tribal Gaming 8.125%, 1/1/06.... BB 500 472,500
------------
1,938,750
------------
INSURANCE (MULTI-LINE)--3.4%
Middletown Trust Series C 11.75%,
7/15/10(j).............................. A+ 6,485 6,809,314
LEISURE TIME (PRODUCTS)--0.6%
Bally Total Fitness Holding Corp. Series
D 9.875%, 10/15/07...................... B- 1,250 1,150,000
RETAIL (SPECIALTY)--0.9%
Musicland Group, Inc. 9%, 6/15/03....... B 2,000 1,800,000
SERVICES (COMMERCIAL & CONSUMER)--1.4%
ARA Services, Inc. 10.625%, 8/1/00...... BBB- 28 28,105
IT Group, Inc. (The) 11.25%, 4/1/09..... B+ 1,665 1,506,825
Service Corp. International 7.20%,
6/1/06.................................. BB+ 2,200 1,309,000
------------
2,843,930
------------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--1.0%
VoiceStream Wireless Holdings 144A
10.375%, 11/15/09(b).................... B- 2,000 2,040,000
TELECOMMUNICATIONS (LONG DISTANCE)--6.4%
Interamericas Communications Corp. 14%,
10/27/07................................ NR 4,420 4,663,100
Level 3 Communications, Inc. 144A
10.75%, 3/15/08(b)(h)................... B 2,000 1,754,162
Metromedia International Group, Inc.
10.50%, 10/1/07......................... NR 756 355,111
NTL Communications Corp. Series B 9.25%,
11/15/06................................ B- 3,000 2,658,581
RCN Corp. Series B 0%, 2/15/08(d)....... B- 5,775 3,450,563
------------
12,881,517
------------
TELEPHONE--0.6%
Teligent, Inc. 11.50%, 12/1/07.......... CCC 1,500 1,297,500
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- -------- ------------
<S> <C> <C> <C>
TEXTILES (APPAREL)--0.9%
Collins & Aikman Products Co. 11.50%,
4/15/06................................. B $ 1,750 $ 1,723,750
---------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $47,563,044) 42,972,148
---------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED
SECURITIES--25.7%
Commercial Mortgage Asset Trust 99-C1 D
7.35%, 10/17/13......................... BBB 3,500 3,187,188
Criimi Mae Trust I 96-C1, A2 7.56%,
6/30/33................................. BBB 5,125 4,783,867
CS First Boston Mortgage Securities
Corp. 97-SPCE C 7.077%, 2/20/07......... A+(c) 4,000 3,826,250
CS First Boston Mortgage Securities
Corp. 98-C2, E 7.13%, 1/15/12........... Baa(c) 4,000 3,376,875
CS First Boston Mortgage Securities
Corp. 97-1R, 1M4 7.583%, 2/28/22........ Baa(c) 4,668 4,313,252
DLJ Mortgage Acceptance Corp. 97-CF2, B2
7.14%, 11/15/08......................... BBB- 4,000 3,563,750
First Boston Mortgage Securities Corp.
93-5, B2 7.30%, 7/25/23................. A+(c) 2,749 2,655,220
First Chicago/Lennar Trust 97-CHL1, D
8.055%, 5/29/08......................... BB(c) 4,000 3,281,875
Mortgage Capital Funding, Inc. 98-MC2, B
6.549%, 5/18/08......................... Aa(c) 2,500 2,316,406
Norwest Asset Securities Corp. 96-3, B1
7.25%, 9/25/26.......................... AA+(c) 3,372 3,173,625
Norwest Asset Securities Corp. 96-3, B2
7.25%, 9/25/26.......................... A(c) 2,249 2,098,384
Norwest Asset Securities Corp. 97-18, B2
6.75%, 12/25/27......................... BBB(c) 1,024 926,425
Norwest Asset Securities Corp. 98-2, B1
6.50%, 2/25/28.......................... A(c) 2,935 2,621,290
Norwest Asset Securities Corp. 98-22, B3
6.25% 9/25/28........................... BBB(c) 615 534,702
</TABLE>
See Notes to Financial Statements 3
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund, Inc.
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- -------- ------------
<S> <C> <C> <C>
Norwest Asset Securities Corp. 99-3, B3
6%, 1/25/29............................. BBB(c) $ 740 $ 629,742
Norwest Asset Securities Corp. 99-6, B3
6%, 3/25/29............................. BBB(c) 433 368,768
Norwest Asset Securities Corp. 99-12, B3
6.25%, 5/25/29.......................... BBB(c) 494 427,996
Norwest Asset Securities Corp. 99-17, B3
6.25%, 6/25/29.......................... BBB(c) 557 481,940
Ryland Mortgage Securities Corp. III
92-A, 1A 8.259%, 3/29/30................ A- 180 178,991
SASCO Floating Rate Commercial Mortgage
98-C3A, H 6.675%, 4/25/03(d)............ Ba(c) 4,000 3,752,500
Structured Asset Securites Corp. 95-C4,
E 8.799%, 6/25/26....................... BBB 5,085 5,044,163
---------------------------------------------------------------------------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $53,298,629) 51,543,209
---------------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--16.4%
ARGENTINA--1.1%
Republic of Argentina RegS 11.75%,
2/12/07(g).............................. BBB- 2,350 2,101,784
BRAZIL--3.4%
Republic of Brazil 14.50%, 10/15/09..... B+ 2,500 2,640,625
Republic of Brazil C Bond, 8%, 4/15/14.. B+ 5,849 4,198,630
------------
6,839,255
------------
BULGARIA--2.0%
Republic of Bulgaria FLIRB Bearer Series
A 2.75%, 7/28/12........................ B(c) 1,250 871,875
Republic of Bulgaria IAB Series PDI
7.063%, 7/28/11(d)...................... B(c) 4,000 3,030,000
------------
3,901,875
------------
COLOMBIA--0.4%
Republic of Colombia 10.875%, 3/9/04.... BB+ 875 822,500
CROATIA--2.0%
Croatia Series A 7.0625%, 7/31/10(d).... BBB- 668 596,352
Croatia Series B 7.0625%, 7/31/06(d).... BBB- 3,721 3,432,988
------------
4,029,340
------------
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- -------- ------------
<S> <C> <C> <C>
MEXICO--4.3%
United Mexican States 10.375%,
2/17/09................................. BB+ $ 500 $ 526,875
United Mexican States 11.375%,
9/15/16................................. BB+ 4,250 4,815,781
United Mexican States 11.50%, 5/15/26... BB+ 2,750 3,255,312
------------
8,597,968
------------
MOROCCO--0.4%
Kingdom of Morocco, Series A 6.844%,
1/1/09(d)............................... BB 895 803,026
PANAMA--0.3%
Republic of Panama 8.875%, 9/30/27...... BB+ 750 635,625
PERU--0.2%
Republic of Peru PDI 4.50%, 3/7/17(d)... BB 500 335,937
POLAND--0.2%
Poland Bearer PDI 6%, 10/27/14(d)....... BBB 500 450,313
RUSSIA--0.7%
Russia Treasury Bill OFZ 14%,
9/12/01(f).............................. NR 41,898 1,151,457
Russian Federal Loan Bond OFZ Series
7004 25%, 9/18/02(d)(f)................. NR 10,641 271,567
------------
1,423,024
------------
TURKEY--0.5%
Republic of Turkey 11.875%, 11/5/04..... B+ 1,000 1,050,000
VENEZUELA--0.9%
Republic of Venezuela DCB Series DL 7%,
12/18/07(d)............................. B 2,286 1,791,417
---------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(IDENTIFIED COST $36,499,672) 32,782,064
---------------------------------------------------------------------------
FOREIGN CORPORATE BONDS--14.7%
BERMUDA--0.5%
Flag Telecom Holdings Ltd. 144A 11.625%,
3/30/10(b)(h)........................... B 1,250 1,059,332
BRAZIL--0.6%
Globo Communicacoes e Participacoes SA
144A 10.50%, 12/20/06(b)................ B+ 1,500 1,260,000
</TABLE>
4 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund, Inc.
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- -------- ------------
<S> <C> <C> <C>
CANADA--2.2%
Clearnet Communications, Inc. 0%,
5/1/09(d)............................... B(c) $ 3,800 $ 2,223,000
GT Group Telecom 144A 0%,
2/1/10(b)(d)(k)......................... CCC+ 4,000 2,140,000
------------
4,363,000
------------
CHILE--0.6%
Petropower I Funding Trust 144A 7.36%,
2/15/14(b).............................. BBB 1,354 1,171,181
MEXICO--7.1%
Alestra SA de Rl de CV 12.625%,
5/15/09................................. BB- 2,700 2,605,500
Banco Nacional de Mexico SA US$
Remittance Master Trust 144A 7.57%,
12/31/00(b)............................. A-(c) 1,728 1,721,224
Grupo Industrial Durango 12.625%,
8/1/03.................................. BB- 1,000 1,007,500
Grupo Iusacell SA 144A 14.25%,
12/1/06(b).............................. B+ 3,250 3,404,375
Maxcom Telecomunicaciones 144A 13.75%,
4/1/07(b)(k)............................ NR 2,250 2,199,375
Nacional Financiera SNC RegS 22%,
5/20/02(e).............................. Baa(c) 20,000 2,299,957
Vicap SA 11.375%, 5/15/07............... B+ 1,000 937,500
------------
14,175,431
------------
NETHERLANDS--0.9%
United Pan-Europe Communications 144A
11.25%, 11/1/09(b)(h)................... B 2,000 1,731,381
UNITED KINGDOM--2.8%
Atlantic Telecom Group PLC 144A 13%,
1/15/10(b)(h)........................... B- 1,875 1,691,513
Clondalkin Industries 144A 10.625%,
1/15/10(b)(h)........................... B- 1,500 1,421,555
Colt Telecom Group 144A 7.625%,
12/15/09(b)(h).......................... B+ 2,000 1,717,712
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- -------- ------------
<S> <C> <C> <C>
UNITED KINGDOM--CONTINUED
Jazztel PLC 144A 13.125%,
12/15/09(b)(h).......................... CCC+ $ 1,000 $ 911,253
------------
5,742,033
------------
---------------------------------------------------------------------------
TOTAL FOREIGN CORPORATE BONDS
(IDENTIFIED COST $30,966,342) 29,502,358
---------------------------------------------------------------------------
FOREIGN CONVERTIBLE BONDS--1.2%
RUSSIA--1.2%
Lukinter Finance Lukoil Cv. RegS 3.50%,
5/6/02.................................. CCC- 2,375 2,481,875
---------------------------------------------------------------------------
TOTAL FOREIGN CONVERTIBLE BONDS
(IDENTIFIED COST $2,807,491) 2,481,875
---------------------------------------------------------------------------
<CAPTION>
SHARES
--------
PREFERRED STOCKS--3.4%
<S> <C> <C> <C>
TELECOMMUNICATIONS (LONG DISTANCE)--3.4%
Global Crossing Holdings Ltd. PIK
10.50%.................................. 50,000 4,900,000
Nextel Communications PIK 11.125%....... 20,000 1,930,000
---------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $6,906,875) 6,830,000
---------------------------------------------------------------------------
COMMON STOCKS--1.5%
PAPER & FOREST PRODUCTS--0.1%
Northampton Pulp LLC(i)(j).............. 3,650 50,187
TELECOMMUNICATIONS (LONG DISTANCE)--1.4%
FirstCom Corp.(i)....................... 137,550 2,854,163
---------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $953,940) 2,904,350
---------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements 5
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund, Inc.
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
WARRANTS--0.1%
TELEPHONE--0.1%
Atlantic Telecom Group Warrants(i)...... 1,875 $ 85,430
---------------------------------------------------------------------------
TOTAL WARRANTS
(IDENTIFIED COST $0) 85,430
---------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--97.1%
(IDENTIFIED COST $207,040,112) 194,655,955(a)
Cash and receivables, less liabilities--2.9% 5,879,567
------------
NET ASSETS--100.0% $200,535,522
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $3,653,177 and gross
depreciation of $16,216,324 for federal income tax purposes. At April 30,
2000, the aggregate cost of securities for federal income tax purposes was
$207,219,102.
(b) 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 April 30,
2000, these securities amounted to a value of $25,214,751 or 12.6% of net
assets.
(c) As rated by Moody's, Fitch or Duff & Phelps.
(d) Variable or step coupon security; interest rate shown reflects the rate
currently in effect.
(e) Par value represents Mexican Pesos.
(f) Par value represents Russian Rubles.
(g) Par value represents Argentine Pesos.
(h) Par value represents Euro.
(i) Non-income producing.
(j) Security valued at fair value as determined in good faith by or under the
direction of the Directors.
(k) Warrants incorporated as a unit.
6 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund, Inc.
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investments securities at value
(Identified cost $207,040,112) $194,655,955
Receivables
Interest 4,640,599
Investment securities sold 1,559,675
Fund shares sold 139,431
Other receivables 507
Net unrealized appreciation on swap
agreements 1,461,120
Prepaid expenses 3,504
------------
Total assets 202,460,791
------------
LIABILITIES
Payables
Custodian 378,384
Investment securities purchased 638,066
Fund shares repurchased 345,519
Income distribution payable 266,500
Distribution fee 96,127
Investment advisory fee 92,352
Financial agent fee 15,838
Transfer agent fee 15,268
Directors' fee 13,692
Accrued expenses 63,523
------------
Total liabilities 1,925,269
------------
NET ASSETS $200,535,522
============
NET ASSETS CONSIST OF:
Capital paid in on shares of common
stock $263,603,688
Undistributed net investment income 563,929
Accumulated net realized loss (52,694,112)
Net unrealized depreciation (10,937,983)
------------
NET ASSETS $200,535,522
============
CLASS A
Shares of common stock outstanding,
$0.10 par value,
166,666,667 shares authorized (Net
Assets $114,472,150) 10,516,233
Net asset value per share $10.89
Offering price per share
$10.89/(1-4.75%) $11.43
CLASS B
Shares of common stock outstanding,
$0.10 par value,
166,666,667 shares authorized (Net
Assets $79,561,985) 7,320,361
Net asset value and offering price
per share $10.87
CLASS C
Shares of common stock outstanding,
$0.10 par value,
166,666,666 shares authorized (Net
Assets $6,501,387) 596,491
Net asset value and offering price
per share $10.90
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 10,577,721
Dividends 262,500
--------------
Total investment income 10,840,221
--------------
EXPENSES
Investment advisory fee 593,887
Distribution fee, Class A 150,805
Distribution fee, Class B 442,197
Distribution fee, Class C 34,377
Financial agent fee 96,531
Transfer agent 121,991
Custodian 32,030
Printing 26,599
Professional 18,443
Registration 18,194
Directors 10,994
Miscellaneous 13,230
--------------
Total expenses 1,559,278
--------------
NET INVESTMENT INCOME 9,280,943
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized loss on securities (1,631,552)
Net realized loss on foreign currency (356,433)
Net change in unrealized appreciation (depreciation)
on investments 959,872
Net change in unrealized appreciation (depreciation)
on swap agreements 1,461,120
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions (171)
--------------
NET GAIN ON INVESTMENTS 432,836
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 9,713,779
==============
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund, Inc.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
4/30/00 Year Ended
(Unaudited) 10/31/99
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 9,280,943 $ 21,380,726
Net realized gain (loss) (1,987,985) (39,790,682)
Net change in unrealized appreciation (depreciation) 2,420,821 33,459,211
------------ ------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS 9,713,779 15,049,255
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (4,889,757) (12,709,813)
Net investment income, Class B (3,280,902) (8,978,439)
Net investment income, Class C (254,085) (572,784)
In excess of net investment income, Class A -- (143,541)
In excess of net investment income, Class B -- (101,400)
In excess of net investment income, Class C -- (6,469)
------------ ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (8,424,744) (22,512,446)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (1,318,406 and 2,210,416
shares, respectively) 14,693,014 24,800,587
Net asset value of shares issued from reinvestment of
distributions
(262,149 and 705,561 shares, respectively) 2,918,649 7,902,801
Cost of shares repurchased (2,671,157 and 5,266,656
shares, respectively) (29,751,296) (58,965,528)
------------ ------------
Total (12,139,633) (26,262,140)
------------ ------------
CLASS B
Proceeds from sales of shares (286,995 and 551,304 shares,
respectively) 3,189,522 6,181,202
Net asset value of shares issued from reinvestment of
distributions
(132,450 and 372,459 shares, respectively) 1,472,678 4,168,689
Cost of shares repurchased (1,655,370 and 3,460,848
shares, respectively) (18,399,920) (38,603,400)
------------ ------------
Total (13,737,720) (28,253,509)
------------ ------------
CLASS C
Proceeds from sales of shares (102,936 and 297,288 shares,
respectively) 1,150,631 3,326,561
Net asset value of shares issued from reinvestment of
distributions
(12,041 and 32,606 shares, respectively) 134,215 365,221
Cost of shares repurchased (176,013 and 201,989 shares,
respectively) (1,961,924) (2,240,507)
------------ ------------
Total (677,078) 1,451,275
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM SHARES TRANSACTIONS (26,554,431) (53,064,374)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (25,265,396) (60,527,565)
NET ASSETS
Beginning of period 225,800,918 286,328,483
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) OF
$563,929 AND DISTRIBUTIONS IN EXCESS OF NET INVESTMENT
INCOME OF $292,270, RESPECTIVELY] $200,535,522 $225,800,918
============ ============
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund, Inc.
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31
4/30/00 -----------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.85 $11.20 $13.50 $13.27 $12.56 $11.94
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.50 0.96 1.07 1.03 0.94 0.96
Net realized and unrealized gain (loss) (0.01) (0.30) (1.88) 0.18 0.72 0.61
------ --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.49 0.66 (0.81) 1.21 1.66 1.57
------ --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.45) (1.00) (1.07) (0.98) (0.95) (0.95)
Dividends from net realized gains -- -- (0.36) -- -- --
In excess of net investment income -- (0.01) -- -- -- --
In excess of net realized gains -- -- (0.06) -- -- --
------ --------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (0.45) (1.01) (1.49) (0.98) (0.95) (0.95)
------ --------- --------- --------- --------- ---------
CHANGE IN NET ASSET VALUE 0.04 (0.35) (2.30) 0.23 0.71 0.62
------ --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $10.89 $10.85 $11.20 $13.50 $13.27 $12.56
====== ========= ========= ========= ========= =========
Total return(1) 4.40%(5) 5.97% (6.86)% 9.22% 13.75% 13.83%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $114,472 $125,931 $156,317 $191,486 $169,664 $168,875
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.11%(4) 1.14%(3) 1.08 % 1.04%(2) 1.07% 1.10%
Net investment income 8.90%(4) 8.59% 8.17 % 7.28% 7.56% 8.10%
Portfolio turnover 61%(5) 133% 157 % 295% 255% 201%
</TABLE>
(1) Maximum sales charges are not reflected in the total return calculation.
(2) For the year ended October 31, 1997, the ratio of operating expenses to
average net assets excludes the effect of expense offsets for custodian
fees; if expense offsets were included, the ratio would not significantly
differ.
(3) For the year ended October 31, 1999, the ratio of operating expenses to
average net assets excludes the effect of expense offsets for custodian
fees; if expense offsets were included, the ratio would be 1.13%.
(4) Annualized
(5) Not annualized
See Notes to Financial Statements 9
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund, Inc.
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31
4/30/00 -----------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.84 $11.18 $13.48 $13.25 $12.54 $11.93
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.46 0.87 0.96 0.92 0.85 0.86
Net realized and unrealized gain (loss) (0.01) (0.29) (1.87) 0.18 0.71 0.61
------ --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.45 0.58 (0.91) 1.10 1.56 1.47
------ --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.42) (0.91) (0.97) (0.87) (0.85) (0.86)
Dividends from net realized gains -- -- (0.36) -- -- --
In excess of net investment income -- (0.01) -- -- -- --
In excess of net realized gains -- -- (0.06) -- -- --
------ --------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (0.42) (0.92) (1.39) (0.87) (0.85) (0.86)
------ --------- --------- --------- --------- ---------
CHANGE IN NET ASSET VALUE 0.03 (0.34) (2.30) 0.23 0.71 0.61
------ --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $10.87 $10.84 $11.18 $13.48 $13.25 $12.54
====== ========= ========= ========= ========= =========
Total return(1) 4.05%(3) 5.15% (7.51)% 8.42% 12.84% 12.96%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $79,562 $92,725 $124,075 $154,989 $142,869 $144,020
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.86%(4) 1.89%(5) 1.84 % 1.79%(2) 1.82% 1.85%
Net investment income 8.15%(4) 7.83% 7.36 % 6.52% 6.80% 7.30%
Portfolio turnover 61%(3) 133% 157 % 295% 255% 201%
</TABLE>
<TABLE>
<CAPTION>
CLASS C
-------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED OCTOBER 31 INCEPTION
4/30/00 ----------------------- 10/14/97 TO
(UNAUDITED) 1999 1998 10/31/97
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.87 $ 11.21 $ 13.48 $14.22
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.46 0.88 0.97 0.04
Net realized and unrealized gain (loss) (0.01) (0.30) (1.85) (0.74)
------ --------- --------- ------
TOTAL FROM INVESTMENT OPERATIONS 0.45 0.58 (0.88) (0.70)
------ --------- --------- ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.42) (0.91) (0.97) (0.04)
Dividends from net realized gains -- -- (0.36) --
In excess of net investment income -- (0.01) -- --
In excess of net realized gains -- -- (0.06) --
------ --------- --------- ------
TOTAL DISTRIBUTIONS (0.42) (0.92) (1.39) (0.04)
------ --------- --------- ------
CHANGE IN NET ASSET VALUE 0.03 (0.34) (2.27) (0.74)
------ --------- --------- ------
NET ASSET VALUE, END OF PERIOD $10.90 $ 10.87 $ 11.21 $13.48
====== ========= ========= ======
Total return(1) 4.03%(3) 5.23% (7.36)% (5.00)%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $6,501 $ 7,145 $ 5,937 $ 284
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.86%(4) 1.89%(5) 1.88 % 1.62 %(2)(4)
Net investment income 8.14%(4) 7.83% 7.46 % 4.75 %(4)
Portfolio turnover 61%(3) 133% 157 % 295 %(3)
</TABLE>
(1) Maximum sales charges are not reflected in the total return calculation.
(2) For the year ended October 31, 1997, the ratio of operating expenses to
average net assets excludes the effect of expense offsets for custodian
fees; if expense offsets were included, the ratio would not significantly
differ.
(3) Not annualized
(4) Annualized
(5) For the year ended October 31, 1999, the ratio of operating expenses to
average net assets excludes the effect of expense offsets for custodian
fees; if expense offsets were included, the ratio would be 1.88%.
10 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR FIXED INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2000 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix-Goodwin Multi-Sector Fixed Income Fund, Inc. (the "Fund") is organized
as a Maryland corporation and is registered under the Investment Company Act of
1940, as amended, as a diversified, open-end management investment company. The
Fund's investment objective is to maximize current income consistent with the
preservation of capital by investing in fixed income securities. The Fund offers
Class A, Class B and Class C shares. Class M shares have been closed. Class A
shares are sold with a front-end sales charge of up to 4.75%. Class B shares are
sold with a contingent deferred sales charge which declines from 5% to zero
depending on the period of time the shares are held. Class C shares are sold
with a 1% contingent deferred sales charge if redeemed within one year of
purchase. All classes of shares have identical voting, dividend, liquidation and
other rights and the same terms and conditions, except that each class bears
different distribution expenses and has exclusive voting rights with respect to
its distribution plan. Income and expenses of the Fund are borne pro rata by the
holders of all classes of shares, except that each class bears distribution
expenses unique to that class.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets, liabilities,
revenues and expenses. Actual results could differ from those estimates.
A. SECURITY VALUATION:
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. Equity securities are valued at the
last sale price, or if there has been no sale that day, at the last bid price.
All other securities and assets are valued at their fair value as determined in
good faith by or under the direction of the Directors.
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 ex-dividend date
or, in case of certain foreign securities, as soon as the Fund is notified.
Discounts and premiums are amortized to income using the effective interest
method. Realized gains and losses are determined on the identified cost basis.
C. INCOME TAXES:
It is the policy of the Fund to comply with the requirements of the Internal
Revenue Code (the "Code"), applicable to regulated investment companies, and to
distribute substantially all of its taxable income to its shareholders. In
addition, the 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 to shareholders are declared and recorded daily. Income and
capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences include the treatment of expiring capital loss carryforwards,
foreign currency gain/loss, and losses deferred due to wash sales and excise tax
regulations. Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
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 Fund does not separate that
portion of the results of operations arising from changes in exchange rates and
that portion arising from changes in the market prices of securities.
F. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS:
The Fund may engage in when-issued or delayed delivery transactions. The Fund
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.
G. OPTIONS:
The 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.
The 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
11
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR FIXED INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2000 (UNAUDITED) (CONTINUED)
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 Fund may purchase options which are included in the 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.
H. SWAP AGREEMENTS:
The Fund may invest in swap agreements for the purpose of hedging against
changes in interest rates or foreign currencies. Swap agreements involve the
exchange by the Fund with another party of their respective commitments to pay
or receive interest (e.g., an exchange of floating rate payments for fixed rate
payments with respect to a notional amount of principal). Swaps are marked to
market daily based upon quotations from market makers and the change, if any, is
recorded as unrealized gain or loss in the Statement of Operations. Net payments
of interest are recorded as interest income. Entering into these agreements
involves, to varying degrees, elements of credit and market risk in excess of
the amounts recognized on the Statement of Assets and Liabilities. Such risks
involve the possibility that there will be no liquid market for these
agreements, that the counterparty to the agreement may default on its obligation
to perform and that there may be unfavorable changes in the fluctuation of
interest rates and/or exchange rates. At April 30, 2000, the Fund had the
following swaps outstanding:
<TABLE>
<CAPTION>
UNREALIZED
NOTIONAL APPRECIATION
AMOUNT (DEPRECIATION)
--------------------- --------------
<C> <S> <C>
$2,063,200 Agreement with Chase Manhattan
Bank terminating on December
15, 2004 to receive interest
at 12.09% in exchange for
payment of 10.00% on EUR
2,000,000.................... $ 286,953
2,100,000 Agreement with Morgan Stanley
Capital Services Inc.
terminating on November 1,
2004 to receive interest at
13.26% in exchange for
payment of 11.25% on EUR
2,000,000.................... 336,667
3,089,000 Agreement with Morgan Stanley
Capital Services Inc.
terminating on November 15,
2006 to receive interest at
11.07% in exchange for
payment of 9.25% on EUR
3,000,000.................... 375,000
1,956,000 Agreement with Morgan Stanley
Capital Services Inc.
terminating on March 15,
2008 to receive interest at
12.82% in exchange for
payment of 10.75% on EUR
2,000,000.................... 160,000
1,203,125 Agreement with Morgan Stanley
Capital Services Inc.
terminating on March 30,
2005 to receive interest at
13.95% in exchange for
payment of 11.625% on EUR
1,250,000.................... 68,750
2,035,000 Agreement with Morgan Stanley
Capital Services Inc.
terminating on December 1,
2009 to receive interest at
9.64% in exchange for payment
of 7.625% on EUR 2,000,000... 233,750
----------
$1,461,120
==========
</TABLE>
12
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR FIXED INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2000 (UNAUDITED) (CONTINUED)
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
As compensation for its services to the Fund, the adviser, Phoenix Investment
Counsel, Inc. ("PIC"), an indirect majority-owned subsidiary of Phoenix Home
Life Mutual Insurance Company ("PHL"), is entitled to a fee at an annual rate of
0.55% for the first $1 billion of the average daily net assets of the Fund.
As Distributor of the Fund's shares, Phoenix Equity Planning Corp. ("PEPCO"),
an indirect majority-owned subsidiary of PHL, has advised the Fund that it
retained net selling commissions of $4,934 for Class A shares, and deferred
sales charges of $95,397 for Class B and $1,639 for Class C shares for the six
months ended April 30, 2000. In addition, the Fund pays PEPCO a distribution fee
at an annual rate of 0.25% for Class A shares, 1.00% for Class B shares and
1.00% for Class C shares of the average daily net assets of the Fund. The
Distribution Plan for Class A shares provides for fees to be paid up to a
maximum on an annual basis of 0.30%; the Distribution has voluntarily agreed to
limit the fee to 0.25%. The Distributor has advised the Fund that of the total
amount expensed for the six months ended April 30, 2000, $378,928 was retained
by the Distributor, $227,667 was paid to unaffiliated participants, and $20,784
was paid to W.S. Griffith, an indirect subsidiary of PHL.
As Financial Agent of the Fund, 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 of
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 Fund's Transfer Agent with State Street Bank and Trust
Company as sub-transfer agent. For the six months ended April 30, 2000, transfer
agent fees were $121,991 of which PEPCO retained $87,253 which is net of the
fees paid to State Street.
At April 30, 2000, PHL and affiliates held 81,150 Class A shares with a value
of $883,724.
3. PURCHASE AND SALE OF SECURITIES
During the six months ended April 30, 2000, purchases and sales of
investments, excluding short-term securities and U.S. Government and agency,
securities, amounted to $108,639,261 and $129,052,338, respectively. Purchases
and sales of long-term U.S. Government and agency securities amounted to
$20,781,063 and $26,552,543, respectively.
4. 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 the Fund's ability to
repatriate such amounts.
5. LOAN AGREEMENTS
The Fund 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 Fund'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
Fund 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 Fund generally has
no right to enforce compliance with the terms of the loan agreement with the
borrower. As a result, the Fund may be subject to the credit risk of both the
borrower and the lender that is selling the loan agreement. For loans which the
Fund is a participant, the Fund may not sell its participation in the loan
without the lender's prior consent. When the Fund 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.
6. CAPITAL LOSS CARRYOVERS
The Fund has capital loss carryover of $50,275,557 comprised of $8,655,748 and
$41,619,809 expiring in 2006 and 2007, respectively, which may be used to offset
future capital gains.
This report is not authorized for distribution to prospective investors in the
Phoenix-Goodwin Multi-Sector Fixed Income Fund, Inc. unless preceded or
accompanied by an effective Prospectus which includes information concerning the
sales charge, Fund's record and other pertinent information.
13
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR FIXED
INCOME FUND, INC.
101 Munson Street
Greenfield, Massachusetts 01301
DIRECTORS
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Francis E. Jeffries
Leroy Keith, Jr.
Philip R. McLoughlin
Everett L. Morris
James M. Oates
Calvin J. Pedersen
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
OFFICERS
Philip R. McLoughlin, President
Michael E. Haylon, Executive Vice President
William R. Moyer, Executive Vice President
John F. Sharry, Executive Vice President
James D. Wehr, Senior Vice President
David L. Albrycht, Vice President
Robert S. Driessen, Vice President
Michael Kearney, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Nancy J. Engberg, Assistant Secretary
INVESTMENT ADVISER
Phoenix Investment Counsel, Inc.
56 Prospect Street
Hartford, Connecticut 06115-0480
PRINCIPAL UNDERWRITER
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
TRANSFER AGENT
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
CUSTODIAN
State Street Bank and Trust Company
P.O. Box 351
Boston, Massachusetts 02101
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
160 Federal Street
Boston, Massachusetts 02110
HOW TO CONTACT US
The Fund Connection 1-800-243-1574
Customer Service 1-800-243-1574
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
www.phoenixinvestments.com
<PAGE>
PHOENIX EQUITY PLANNING CORPORATION
PO Box 2200
Enfield CT 06083-2200
PRSRT STD
U.S. Postage
PAID
Andrew
Associates
[LOGO]PHOENIX INVESTMENT PARTNERS
For more information about
Phoenix mutual funds, please call
your financial representative or
contact us at 1-800-243-4361 or
www.phoenixinvestments.com
PXP 741 (6/00)
