DRAFT 3/8/00
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
Filed by the Registrant [x]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
[X] Preliminary Proxy Statement
[ ] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuantto Sec. 240.14a-11(c) or
Sec. 240.14a-12
PHOENIX-GOODWIN MULTI-SECTOR FIXED INCOME FUND, INC.
(Name of Registrant as Specified in its Charter)
PAMELA S. SINOFSKY
c/o Phoenix Investment Partners, Ltd.
56 Prospect Street
Hartford, Connecticut 06115-0480
(Name of Person(s) Filing Proxy Statement)
Payment of Filing Fee (Check appropriate box):
[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and
0-11.
1) Title of each class of securities to which transaction
applies:
2) Aggregate number of securities to which transaction applies:
3) Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11: (Set forth the
amount on which the filing fee is calculated and state how
it was determined.)
4) Proposed maximum aggregate value of transaction:
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by
Exchange Act Rule 0-11(a)(2) and identify the filing for which the
offsetting fee was paid previously. Identify the previous filing
by registration statement number, or the Form or Schedule and the
date of its filing.
1) Amount Previously Paid:
2) Form, Schedule or Registration No.:
3) Filing Party:
4) Date Filed:
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR
FIXED INCOME FUND, INC.
101 MUNSON STREET
GREENFIELD, MASSACHUSETTS 01301
--------------
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
10:00 A.M. (EASTERN TIME), TUESDAY,
MAY 16, 2000
--------------
To the Shareholders:
A Special Meeting of Shareholders of Phoenix-Goodwin Multi-Sector Fixed
Income Fund, Inc. (the "Fund") will be held in the offices of the Fund, 101
Munson Street, Greenfield, Massachusetts 01301, on Tuesday, May 16, 2000 at
10:00 a.m. (eastern time) for the following purposes:
FOR CONSIDERATION BY CLASS B SHAREHOLDERS ONLY:
(1) Approval of a new Rule 12b-1 Distribution Plan for Class B Shares, in
the form attached to this Proxy Statement as Exhibit A;
FOR CONSIDERATION BY CLASS C SHAREHOLDERS ONLY:
(2) Approval of a new Rule 12b-1 Distribution Plan for Class C Shares, in
the form attached to this Proxy Statement as Exhibit B; and
(3) To consider and act upon such other matters as may properly come before
the meeting or any adjournment thereof.
These proposals are discussed in detail in the attached Proxy Statement.
The Board of Directors has fixed March 20, 2000 as the record date for the
determination of shareholders entitled to notice of and to vote at the meeting.
Whether or not you plan to attend the meeting in person, please vote your
shares. As a convenience to our shareholders, you may now vote in any one of the
following ways:
o By telephone, with a toll-free call to BostonEquiserve, the Fund's proxy
tabulator, at 1-877-779-8683 and following the recorded instructions;
o By mail, with the enclosed proxy card and postage-paid envelope; or
o In person at the meeting.
<PAGE>
We encourage you to vote by telephone, using the control number that appears
on your enclosed proxy card. Use of telephone voting will reduce the time and
costs associated with this proxy solicitation. Whichever method you choose,
please read the enclosed proxy statement carefully before you vote.
PLEASE RESPOND--WE ASK THAT YOU VOTE PROMPTLY IN ORDER TO AVOID THE
ADDITIONAL EXPENSE OF FURTHER SOLICITATION. YOUR VOTE IS IMPORTANT.
By Order of the Board of Directors,
G. JEFFREY BOHNE,
Clerk
Greenfield, Massachusetts
March 24, 2000
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR FIXED
INCOME FUND, INC.
101 MUNSON STREET
GREENFIELD, MASSACHUSETTS 01301
--------------
PROXY STATEMENT
A SPECIAL MEETING OF SHAREHOLDERS
TO BE HELD ON MAY 16, 2000
--------------
The enclosed proxy is solicited by the Board of Directors of Phoenix-Goodwin
Multi-Sector Fixed Income Fund, Inc. (the "Fund") for use at the Special Meeting
of Shareholders to be held on Tuesday, May 16, 2000, and at any adjournment
thereof. Shareholders of record at the close of business on March 20, 2000 of
Class B Shares and Class C Shares of Phoenix-Goodwin Multi-Sector Fixed Income
Fund, Inc. ("Shareholders") are entitled to notice of and to vote at the Special
Meeting and any adjourned session. On that date there were issued and
outstanding ____________ Class B and __________ Class C shares of the Fund, par
value $0.10 per share, (the "Shares"). Each Shareholder will be entitled to one
vote for each full Share (and a fractional vote corresponding to any fractional
Share) registered in his or her name on the Fund's books on the record date.
Only those Shares indicated below will vote on each Proposal.
------------------------- ---------------------------------------------------
PROPOSAL SHARES VOTED
------------------------- ---------------------------------------------------
1 Class B Shares
------------------------- ---------------------------------------------------
2 Class C Shares
------------------------- ---------------------------------------------------
3 Class B and Class C Shares, voted together
------------------------- ---------------------------------------------------
All Shares will be voted in accordance with the specifications on duly
executed proxies for such Shares. If a duly executed proxy does not specify a
choice between approval or disapproval of or abstention with respect to any
proposal, the Shares represented by the proxy will be voted in favor of the
proposal. Any Shareholder executing a proxy has the power to revoke it at any
time before it is exercised by executing and submitting to the Fund a
later-dated proxy or written notice of revocation or by attending the meeting
and voting in person.
In addition to the solicitation of proxies by mail, officers and employees
of Phoenix Investment Partners, Ltd. or its affiliates, may solicit proxies
personally or by telephone or telegram. The Fund may also use a proxy
<PAGE>
solicitation firm to assist with the mailing and tabulation effort and any
special, personal solicitation of proxies. Banks, brokers, fiduciaries and
nominees will, upon request, be reimbursed by the Fund for their reasonable
expenses in sending proxy material to beneficial owners of Fund shares. D. F.
King & Co., Inc., a proxy solicitation firm, has been engaged by the Fund to act
as solicitor and will receive fees estimated at $_______, plus reimbursement of
out-of-pocket expenses. The cost of solicitation of proxies will be borne by
Phoenix Equity Planning Corporation, the Fund's distributor.
In the event that sufficient votes in favor of any of the items set forth in
the attached Notice of the meeting are not received by the time scheduled for
the meeting, the persons named as proxies may propose one or more adjournments
of the meeting for a period or periods of not more than sixty days in the
aggregate to permit further solicitation of proxies with respect to any such
matters. Any such adjournment will require the affirmative vote of a majority of
the votes cast on the question in person or by proxy at the session of the
meeting to be adjourned. The persons named as proxies will vote in favor of such
adjournment those proxies which they are entitled to vote in favor of such
proposals. They will vote against such adjournment those proxies required to be
voted against any such proposal.
The presence in person or by proxy of the holders of a majority of the
outstanding shares of the Fund or any series or class is required to constitute
a quorum for transacting business at the meeting. If a Shareholder abstains from
voting as to any matter, then the Shares held by such Shareholder shall be
deemed present at the meeting for purposes of determining a quorum, but shall
not be included for the purposes of calculating the vote with respect to such
matter, and shall not be deemed to have been voted in favor of such matter. If a
broker returns a "non-vote" proxy, indicating a lack of authority to vote on
such matter, then the Shares covered by such non-vote proxy shall be deemed
present at the meeting for all purposes except for the purpose of calculating
the vote with respect to such matter.
As used in this Proxy Statement, the term "interested person" has the
meaning provided therefore in the Investment Company Act of 1940 (the "1940
Act").
This Proxy Statement and the enclosed form of proxy are first being mailed
to shareholders on or about March 24, 2000.
A COPY OF THE FUND'S MOST RECENT ANNUAL AND SEMIANNUAL REPORTS WILL BE
FURNISHED, WITHOUT CHARGE, TO ANY SHAREHOLDER UPON REQUEST TO PHOENIX EQUITY
PLANNING CORPORATION, 100 BRIGHT MEADOW BOULEVARD, P.O. BOX 2200, ENFIELD,
CONNECTICUT 06083-2200. SHAREHOLDERS MAY ALSO CALL PHOENIX EQUITY PLANNING
CORPORATION TOLL-FREE AT (800) 243-4361.
2
<PAGE>
SHARES OWNED BY CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth information as of March ___, 2000 with
respect to each person who owns of record or is known by the Fund to own of
record or beneficially own 5% or more of any class of the Fund:
NAME OF SHAREHOLDER CLASS NUMBER OF SHARES PERCENT OF CLASS
- ------------------- ----- ---------------- ----------------
[AS TO INSERT SHAREHOLDER INFORMATION]
On March ___, 2000, the Directors and officers as a group owned beneficially
less than one percent of the Fund's outstanding shares. [AS TO VERIFY]
3
<PAGE>
PROPOSAL 1
APPROVAL OF A NEW RULE 12B-1
DISTRIBUTION PLAN FOR CLASS B SHARES
(TO BE VOTED UPON ONLY BY SHAREHOLDERS
OF CLASS B SHARES)
On November 17, 1999, the Fund's Board of Directors approved the adoption of
a new Distribution Plan under Rule 12b-1 of the 1940 Act for Class B shares of
the Fund (the "Proposed Class B Plan) subject to obtaining the approval of the
Fund's Class B shareholders. The purpose of the Proposed Class B Plan is to
compensate and defray costs and expenses of Phoenix Equity Planning Corporation
("PEPCO"), the Fund's principal distributor, for distribution services related
to selling Class B shares of the Fund, including payments to broker/dealers and
other financial institutions for services rendered in connection with the sale
and distribution of such shares ("Distribution Activities"), and to compensate
and defray costs and expenses of PEPCO for Class B shareholder account
servicing, assistance and maintenance ("Service Fees"). The Board of Directors
recommends approval of the Proposed Class B Plan.
The Board of Directors previously adopted a plan of distribution for the
Fund's Class B shares (the "Existing Class B Plan"), which was approved by
shareholders on May 14, 1993 and last approved by the Board of Directors on
November 17, 1999. On that date, the Board also approved an amendment to the
Existing Class B Plan to permit free exchangeability of Class B shares among
other funds distributed by PEPCO and managed by an affiliated investment
adviser. Shareholders are being asked to approve the Proposed Class B Plan to
effect a change from a reimbursement type plan to a compensation type plan. The
Proposed Class B Plan does not change the maximum annual fee that may be paid to
PEPCO under the Existing Class B Plan, although the possibility exists that
expenses incurred by PEPCO and for which it is entitled to be reimbursed under
the Existing Class B Plan could be less than the fee PEPCO will receive under
the Proposed Class B Plan. The change to a compensation type plan is proposed to
bring the Fund in line with industry practice. Moreover, a compensation plan is
significantly more efficient to administer.
THE EXISTING CLASS B PLAN
Under the Existing Class B Plan, the Fund pays PEPCO a Service Fee at the
annual rate of .25% of the average daily net assets of Class B Shares and
reimburses PEPCO for expenses incurred for Distribution Activities at an annual
rate of up to .75% of the average daily net assets of Class B Shares.
4
<PAGE>
Amounts reimbursable under the Existing Class B Plan that are not paid because
they exceed the maximum fee payable thereunder are carried forward and may be
recovered in future years by PEPCO from asset-based sales charges imposed on
Class B shares, to the extent that such charges do not exceed .75 of 1% per
annum of the average daily net assets of the Class B shares, and from contingent
deferred sales charges received from certain redeeming shareholders, subject to
the limitation of Rule 2830 of the NASD Conduct Rules (the "NASD Rules"). The
NASD Rules place an annual limit of .25 of 1% on fees that may be imposed for
the provision of personal service and/or the maintenance of shareholder accounts
(service fees) and an annual limit of .75 of 1% on asset-based sales charges (as
defined in the NASD Rules). Pursuant to the NASD Rules, the aggregate deferred
sales charges and asset-based sales charges on Class B shares of the Fund may
not, subject to certain exclusions, exceed 6.25% of total gross sales of Class B
shares.
The Existing Class B Plan may not be amended to increase materially the
amount to be spent for the services described therein without approval by a
majority of the holders of the Class B shares of the Fund. In addition, all
material amendments thereof must be approved by vote of a majority of the
Directors, including a majority of those Directors who are not interested
persons ("Rule 12b-1 Directors"), cast in person at a meeting called for the
purpose of voting on the plan. So long as the Existing Class B Plan is in
effect, the selection and nomination of the Rule 12b-1 Directors will be
committed to the discretion of the Rule 12b-1 Directors. The Existing Class B
Plan may be terminated at any time by the vote of a majority of the Rule 12b-1
Directors or by the vote of a majority of the outstanding Class B shares of the
Fund (as defined in the 1940 Act).
THE PROPOSED CLASS B PLAN
Both the Existing Class B Plan and the Proposed Class B Plan require the
Fund to pay PEPCO a Service Fee of .25 of 1% per annum of the average daily net
assets of the Class B shares. However, the Proposed Class B Plan differs from
the Existing Class B Plan in several respects; most importantly, it is a
compensation type plan. Under the Existing Class B Plan, the Fund reimburses
PEPCO for expenses actually incurred for Distribution Activities, up to a
maximum of .75 of 1% per annum of the average daily net assets of the Class B
shares. The Proposed Class B Plan authorizes the Fund to pay PEPCO the same
maximum annual fee for Distribution Activities as compensation for its
Distribution Activities, regardless of the expenses incurred by PEPCO for its
Distribution Activities. Consequently, if PEPCO's expenses are less than its
distribution and service fees, it will retain its full fees and realize a
profit. However, if PEPCO's expenses exceed the distribution and service fees
received under the Proposed Class B Plan, it will no longer carry forward such
5
<PAGE>
amounts for reimbursement in future years. Since inception of the Existing Class
B Plan, the cumulative reimbursable expenses incurred thereunder by PEPCO have
exceeded the amounts reimbursed by the Fund. As of October 31, 1999, the
aggregate amount of distribution expenses incurred and not yet reimbursed by the
Fund or recovered through contingent deferred sales charges was approximately
$704,384. For the fiscal year ended October 31, 1999, PEPCO received $1,099,295
from the Fund under the Existing Class B Plan, representing a total of 1% of the
average daily net assets of the Class B shares. Since the maximum annual fee
under the Existing Class B Plan is the same as under the Proposed Class B Plan,
PEPCO would have received the same annual fee under the Proposed Class B Plan as
it did under the Existing Class B Plan for the same period.
One of the reasons it is appropriate to adopt the Proposed Class B Plan is
that compensation type plans are far more common in the marketplace than
reimbursement plans. According to an Abstract of Industry Data Regarding
Distribution Plans presented by Fund management, approximately 93% of the 12b-1
plans reviewed (representing about 91% of the total universe of mutual funds)
have compensation plans. Another significant benefit of compensation type plans,
such as the Proposed Class B Plan, over a reimbursement type plan, such as the
Existing Class B Plan, is the facilitation of administration and accounting.
Under reimbursement plans, all expenses must be specifically accounted for by
the distributor and attributed to the specific class of shares of a fund in
order to qualify for reimbursement. Although the Proposed Class B Plan will
continue to require quarterly reporting to the Board of Directors of the amounts
accrued and paid under the Plan and of the expenses actually borne by the
distributor, there will be no need to match specific expenses to reimbursements
and no carrying forward of such amounts, as under the Existing Class B Plan.
Thus, the accounting for the Proposed Class B Plan would be simplified and the
timing of when expenditures are to be made by the distributor would not be an
issue. Currently, because the Existing Class B Plan is a reimbursement plan, the
Distributor devotes significant internal resources to properly determine those
expenses allocable to the Fund's Class B shares for reimbursement, the cost of
which is borne by the Fund and other funds for which PEPCO serves as
distributor. These considerations, combined with the fact that the cumulative
expenses incurred by PEPCO for Distribution Activities have exceeded the amounts
reimbursed by the Fund under the Existing Class B Plan, suggest that the costs
and efforts associated with a reimbursement plan are unwarranted.
In considering whether to approve the Proposed Class B Plan, the Directors
reviewed, among other things, the nature and scope of the services to be
provided by PEPCO, the amount of expenditures under the Existing Class B
6
<PAGE>
Plan, including unreimbursed expenses from prior years, and comparative data
with respect to distribution arrangements adopted by other investment companies.
Based upon such review, the Directors, including a majority of the 12b-1
Directors, determined that there is a reasonable likelihood that the Proposed
Class B Plan will benefit the Fund and its Class B shareholders.
If approved by Class B shareholders, the Proposed Class B Plan will continue
in effect from year to year, provided such continuance is approved at least
annually by a vote of a majority of the Board of Directors, including a majority
of the Rule 12b-1 Directors.
VOTING REQUIREMENTS
The Directors recommend that the shareholders approve the proposed Class B
Rule 12b-1 Distribution Plan. Approval of the Class B Plan is to be determined
by the vote of a majority of the outstanding Class B shares of the Fund. A
majority is constituted by the lessor of: (a) 67% or more of the voting
securities present at such meeting, if the holders of more than 50% of the
outstanding voting securities of such Class are present or represented by proxy;
or (b) more than 50% of the outstanding voting securities of such Class. If the
Proposed Class B Plan is not approved, the Existing Class B Plan will continue
in its present form.
THE DIRECTORS RECOMMEND A VOTE "FOR"
THE APPROVAL OF THE PROPOSED CLASS B
RULE 12B-1 DISTRIBUTION PLAN
7
<PAGE>
PROPOSAL 2
APPROVAL OF A NEW RULE 12B-1
DISTRIBUTION PLAN FOR CLASS C SHARES
(TO BE VOTED UPON ONLY BY SHAREHOLDERS
OF CLASS C SHARES)
On November 17, 1999, the Fund's Board of Directors approved the adoption of
a new Distribution Plan under Rule 12b-1 of the 1940 Act for Class C shares of
the Fund (the "Proposed Class C Plan) subject to obtaining the approval of the
Fund's Class C shareholders. The purpose of the Proposed Class C Plan is to
compensate and defray costs and expenses of Phoenix Equity Planning Corporation
("PEPCO"), the Fund's principal distributor, for distribution services related
to selling Class C shares of the Fund, including payments to broker/dealers and
other financial institutions for services rendered in connection with the sale
and distribution of such shares ("Distribution Activities"), and to compensate
and defray costs and expenses of PEPCO for Class C shareholder account
servicing, assistance and maintenance ("Service Fees"). The Board of Directors
recommends approval of the Proposed Class C Plan.
The Board of Directors previously adopted a plan of distribution for the
Fund's Class C shares (the "Existing Class C Plan"), which was approved by
shareholders on [DATE TBD] and last approved by the Board of Directors on
November 17, 1999. Shareholders are being asked to approve the Proposed Class C
Plan to effect a change from a reimbursement type plan to a compensation type
plan. The Proposed Class C Plan does not change the maximum annual fee that may
be paid to PEPCO under the Existing Class C Plan, although the possibility
exists that expenses incurred by PEPCO and for which it is entitled to be
reimbursed under the Existing Class C Plan could be less than the fee PEPCO will
receive under the Proposed Class C Plan. The change to a compensation type plan
is proposed to bring the Fund in line with industry practice. Moreover, a
compensation plan is significantly more efficient to administer.
THE EXISTING CLASS C PLAN
Under the Existing Class C Plan, the Fund pays PEPCO a Service Fee at the
annual rate of .25% of the average daily net assets of Class C Shares and
reimburses PEPCO for expenses incurred for Distribution Activities at an annual
rate of up to .75% of the average daily net assets of Class C Shares. Amounts
reimbursable under the Existing Class C Plan that are not paid because they
exceed the maximum fee payable thereunder are carried forward and may be
recovered in future years by PEPCO from asset-based sales
8
<PAGE>
charges imposed on Class C shares, to the extent that such charges do not exceed
.75 of 1% per annum of the average daily net assets of the Class C shares, and
from contingent deferred sales charges received from certain redeeming
shareholders, subject to the limitation of Rule 2830 of the NASD Conduct Rules
(the "NASD Rules"). The NASD Rules place an annual limit of .25 of 1% on fees
that may be imposed for the provision of personal service and/or the maintenance
of shareholder accounts (service fees) and an annual limit of .75 of 1% on
asset-based sales charges (as defined in the NASD Rules). Pursuant to the NASD
Rules, the aggregate deferred sales charges and asset-based sales charges on
Class C shares of the Fund may not, subject to certain exclusions, exceed 6.25%
of total gross sales of Class C shares.
The Existing Class C Plan may not be amended to increase materially the
amount to be spent for the services described therein without approval by a
majority of the holders of the Class C shares of the Fund. In addition, all
material amendments thereof must be approved by vote of a majority of the
Directors, including a majority of those Directors who are not interested
persons ("Rule 12b-1 Directors"), cast in person at a meeting called for the
purpose of voting on the plan. So long as the Existing Class C Plan is in
effect, the selection and nomination of the Rule 12b-1 Directors will be
committed to the discretion of the Rule 12b-1 Directors. The Existing Class C
Plan may be terminated at any time by the vote of a majority of the Rule 12b-1
Directors or by the vote of a majority of the outstanding Class C shares of the
Fund (as defined in the 1940 Act).
THE PROPOSED CLASS C PLAN
Both the Existing Class C Plan and the Proposed Class C Plan require the
Fund to pay PEPCO a Service Fee of .25 of 1% per annum of the average daily net
assets of the Class C shares. However, the Proposed Class C Plan differs from
the Existing Class C Plan in several respects; most importantly, it is a
compensation type plan. Under the Existing Class C Plan, the Fund reimburses
PEPCO for expenses actually incurred for Distribution Activities, up to a
maximum of .75 of 1% per annum of the average daily net assets of the Class C
shares. The Proposed Class C Plan authorizes the Fund to pay PEPCO the same
maximum annual fee for Distribution Activities as compensation for its
Distribution Activities, regardless of the expenses incurred by PEPCO for its
Distribution Activities. Consequently, if PEPCO's expenses are less than its
distribution and service fees, it will retain its full fees and realize a
profit. However, if PEPCO's expenses exceed the distribution and service fees
received under the Proposed Class C Plan, it will no longer carry forward such
amounts for reimbursement in future years. Since inception of the Existing Class
C Plan, the cumulative reimbursable expenses incurred thereunder by PEPCO have
exceeded the amounts reimbursed by the Fund. As of October
9
<PAGE>
31, 1999, the aggregate amount of distribution expenses incurred and not yet
reimbursed by the Fund or recovered through contingent deferred sales charges
was approximately $_______. For the fiscal year ended October 31, 1999, PEPCO
received $71,078 from the Fund under the Existing Class C Plan, representing a
total of 1% of the average daily net assets of the Class C shares. Since the
maximum annual fee under the Existing Class C Plan is the same as under the
Proposed Class C Plan, PEPCO would have received the same annual fee under the
Proposed Class C Plan as it did under the Existing Class C Plan for the same
period.
One of the reasons it is appropriate to adopt the Proposed Class C Plan is
that compensation type plans are far more common in the marketplace than
reimbursement plans. According to an Abstract of Industry Data Regarding
Distribution Plans presented by Fund management, approximately 93% of the 12b-1
plans reviewed (representing about 91% of the total universe of mutual funds)
have compensation plans. Another significant benefit of compensation type plans,
such as the Proposed Class C Plan, over a reimbursement type plan, such as the
Existing Class C Plan, is the facilitation of administration and accounting.
Under reimbursement plans, all expenses must be specifically accounted for by
the distributor and attributed to the specific class of shares of a fund in
order to qualify for reimbursement. Although the Proposed Class C Plan will
continue to require quarterly reporting to the Board of Directors of the amounts
accrued and paid under the Plan and of the expenses actually borne by the
distributor, there will be no need to match specific expenses to reimbursements
and no carrying forward of such amounts, as under the Existing Class C Plan.
Thus, the accounting for the Proposed Class C Plan would be simplified and the
timing of when expenditures are to be made by the distributor would not be an
issue. Currently, because the Existing Class C Plan is a reimbursement plan, the
Distributor devotes significant internal resources to properly determine those
expenses allocable to the Fund's Class C shares for reimbursement, the cost of
which is borne by the Fund and other funds for which PEPCO serves as
distributor. These considerations, combined with the fact that the cumulative
expenses incurred by PEPCO for Distribution Activities have exceeded the amounts
reimbursed by the Fund under the Existing Class C Plan, suggest that the costs
and efforts associated with a reimbursement plan are unwarranted.
In considering whether to approve the Proposed Class C Plan, the Directors
reviewed, among other things, the nature and scope of the services to be
provided by PEPCO, the amount of expenditures under the Existing Class C Plan,
including unreimbursed expenses from prior years, and comparative data with
respect to distribution arrangements adopted by other investment companies.
Based upon such review, the Directors, including a majority of the
10
<PAGE>
12b-1 Directors, determined that there is a reasonable likelihood that the
Proposed Class C Plan will benefit the Fund and its Class C shareholders.
If approved by Class C shareholders, the Proposed Class C Plan will continue
in effect from year to year, provided such continuance is approved at least
annually by a vote of a majority of the Board of Directors, including a majority
of the Rule 12b-1 Directors.
VOTING REQUIREMENTS
The Directors recommend that the shareholders approve the proposed Class C
Rule 12b-1 Distribution Plan. Approval of the Class C Plan is to be determined
by the vote of a majority of the outstanding Class C shares of the Fund. A
majority is constituted by the lessor of: (a) 67% or more of the voting
securities present at such meeting, if the holders of more than 50% of the
outstanding voting securities of such Class are present or represented by proxy;
or (b) more than 50% of the outstanding voting securities of such Class. If the
Proposed Class C Plan is not approved, the Existing Class C Plan will continue
in its present form.
THE DIRECTORS RECOMMEND A VOTE "FOR"
THE APPROVAL OF THE PROPOSED CLASS C
RULE 12B-1 DISTRIBUTION PLAN
INVESTMENT ADVISER, UNDERWRITER AND
FINANCIAL AGENT
Phoenix Investment Counsel, Inc., 56 Prospect Street, Hartford, Connecticut
06115-0480 is the Fund's investment adviser.
Phoenix Equity Planning Corporation, 100 Bright Meadow Boulevard, P.O. Box
2200, Enfield, Connecticut 06083-2200, serves as the Fund's underwriter and as
the Fund's financial agent.
11
<PAGE>
ADDITIONAL INFORMATION
OTHER MATTERS
As of the date of this Proxy Statement, the Fund's management knows of no
other matters to be brought before the meeting. However, if any other matters
properly come before the meeting, the persons named in the enclosed proxy will
vote in accordance with their judgment on such matters.
SHAREHOLDER PROPOSALS
The Fund is not required and does not intend to hold annual meetings of
shareholders. The next meeting of shareholders will be held at such time as may
be determined by the Directors or legally required. Any shareholder desiring to
present a proposal for consideration at the next meeting of shareholders must
submit the proposal in writing so that it is received by the Fund within a
reasonable time before the solicitation for such meeting is made and must
satisfy all other legal requirements.
All shareholders are urged to vote. The enclosed proxy is revocable and will
not affect your right to vote in person if you attend the meeting.
By Order of the Board of Directors,
G. JEFFREY BOHNE,
Clerk
Greenfield, Massachusetts
March 24, 2000
12
<PAGE>
EXHIBIT A
CLASS B SHARES
RULE 12B-1 DISTRIBUTION PLAN
This distribution plan (the "Rule 12b-1 Distribution Plan" or the "Plan")
has been adopted by the Class B shareholders of Phoenix-Goodwin Multi-Sector
Fixed Income Fund, Inc. (the "Fund"), a Maryland corporation, on
_________________, pursuant to Rule 12b-1 under the Investment Company Act of
1940, as amended (the "Act").
WHEREAS:
The Fund is an open-end management investment company and is registered as
such under the Act. The Fund has a multi-class distribution system that allows
the Fund to offer investors the option of purchasing shares of separate share
classes. This Plan governs only the Class B Shares of the Fund. The Fund may,
from time to time, distribute shares of each class of the Fund through a
contractual arrangement (the "Distribution Agreement") with a principal
distributor for such class of shares duly qualified to act on behalf of the Fund
in such capacity (any such principal distributor, the "Principal Distributor"),
it being understood that the Fund may change the Principal Distributor for any
class of shares from time to time. The Board of Directors, including a majority
of the Qualified Directors (as defined in paragraph 5 herein), has determined to
adopt the Plan. In voting to approve the Plan, the Directors have determined, in
the exercise of their reasonable business judgment and in light of their
fiduciary duty, that there is a reasonable likelihood that this Plan will
benefit the Class B Shares of the Fund with respect to which this Plan will be
effective and its shareholders.
NOW, THEREFORE, in consideration of the foregoing, the Fund hereby adopts
this Plan in accordance with Rule 12b-1 under the Act on the following terms and
conditions:
1. The Fund shall pay to each Principal Distributor of Class B Shares its
"Allocable Portion," as hereinafter defined, of the distribution fee allowable
under the Rules of Conduct of NASD Regulation, Inc. (the "Rules of Conduct") in
respect of such Class of Shares, consisting of a distribution fee at the rate of
three quarters of one percent (0.75%) per annum of the average daily net asset
value of such Class of Shares (the "Distribution Fee") and a service fee at a
rate of one quarter of one percent (0.25%) of the average daily net asset value
of such Class of Shares of the Fund. For purposes of applying the limitation set
forth in the Rules of Conduct on the maximum amount of the Distribution Fee
payable in respect of the Class B Shares, the Fund hereby
<PAGE>
elects to add to six and one quarter percent (6.25%) of the issue price of the
Class B Shares interest thereon at the rate of prime plus one percent per annum.
A contingent deferred sales charge ("CDSC") also shall be payable by the holders
of Class B Shares in the case of early redemption of such Class B Shares.
2. The amounts set forth in paragraph 1 of this Plan shall be paid for the
Principal Distributor's services and expenses as distributor of the Class B
Shares of the Fund and may be spent by the Principal Distributor, in its
discretion, on, among other things, compensation to and expenses (including
overhead and telephone expenses) of account executives or other employees of the
Principal Distributor or of other broker-dealers who engage in or support
distribution of shares; printing of prospectuses and reports for other than
existing shareholders; advertising; preparation, printing and distribution of
sales literature; and allowances to other broker-dealers.
3. Any Distribution Agreement in respect of Class B Shares may provide that:
(I) the Principal Distributor in respect of such Distribution Agreement will be
deemed to have fully earned its Allocable Portion of the Distribution Fee
payable in respect of Class B Shares upon the sale of each "Initial Issue
Commission Share" (as hereinafter defined) taken into account in determining
such Principal Distributor's Allocable Portion of such Distribution Fee; (II)
except as provided in (III) below, the Fund's obligation to pay such Principal
Distributor its Allocable Portion of the Distribution Fee payable in respect of
the Class B Shares shall be absolute and unconditional and shall not be subject
to dispute, offset, counterclaim or any defense whatsoever (it being understood
that such provision is not a waiver of the Fund's right to pursue such Principal
Distributor and enforce such claims against the assets of such Principal
Distributor other than its right to the Distribution Fees and CDSCs in respect
of the Class B Shares); (III) the Fund's obligation to pay such Principal
Distributor its Allocable Portion of the Distribution Fee payable in respect of
the Class B Shares shall not be terminated or modified except to the extent
required by a change in the Act or the Rules of Conduct enacted or promulgated
after June 1, 2000 (a "Change-in-Applicable-Law"), or in connection with a
"Complete Termination" (as hereinafter defined) of this Plan in respect of the
Class B Shares; (IV) the Fund will not waive or change any CDSC in respect of
the Class B Shares, except as provided in the Fund's Prospectus or statement of
additional information without the consent of the Principal Distributor (or its
assigns); (V) except to the extent required by a Change-in-Applicable-Law,
neither the termination of such Principal Distributor's role as principal
distributor of the Class B Shares, nor the termination of such Distribution
Agreement nor the termination of this Plan will terminate such Principal
Distributor's right to its
2
<PAGE>
Allocable Portion of the CDSCs in respect of Class B Shares sold prior to such
termination; (VI) except as provided in the Fund's Prospectus and statement of
additional information, until such Principal Distributor has been paid its
Allocable Portion of the Distribution Fees in respect of the Class B Shares, the
Fund will not adopt a plan of liquidation in respect of the Fund without the
consent of such Principal Distributor (or its assigns); and (VII) such Principal
Distributor may sell and assign its rights to its Allocable Portion of the
Distribution Fees and CDSCs (but not such Principal Distributor's obligations to
the Fund under the Distribution Agreement) to raise funds to make the
expenditures related to the distribution of Class B Shares and in connection
therewith, upon receipt of notice of such sale and assignment, the Fund shall
pay to the purchaser or assignee such portion of the Principal Distributor's
Allocable Portion of the Distribution Fees in respect of the Class B Shares so
sold or assigned. For purposes of this Plan, the term "Allocable Portion" means,
in respect of Distribution Fees payable in respect of the Class B Shares as
applied to any Principal Distributor, the portion of such Distribution Fees and
CDSCs allocated to such Principal Distributor in accordance with the Allocation
Schedule (as hereinafter defined). For purposes of this Plan, the term "Complete
Termination" of this Plan means a termination of this Plan involving the
cessation of payments of Distribution Fees hereunder in respect of Class B
Shares and the cessation of payments of distribution fees pursuant to every
other rule 12b-1 plan of the Fund for every future class of shares which, in the
good faith determination of the Board of Directors of the Fund, has
substantially similar economic characteristics to the Class B Shares taking into
account the total sales charge, contingent deferred sales charge and other
similar charges, it being understood that the existing Class A Shares do not
have substantially similar economic characteristics to the Class B Shares. For
purposes of this Plan, the term "Allocation Schedule" means, in respect of the
Class B Shares, a schedule which shall be approved in the same manner as this
Plan as contemplated by Section 5 hereof for assigning to each Principal
Distributor of Class B Shares the portion of the total Distribution Fees payable
by the Fund in respect of the Class B Shares which has been earned by such
Principal Distributor, which shall be attached to and become a part of any
Distribution Agreement in respect of Class B Shares. For purposes of clause (I)
of the first sentence of this Section 3, the term "Initial Issue Commission
Share" shall mean, a Class B Share which is a Commission Share issued under
circumstances other than in connection with a permitted free exchange with
another fund. For purposes of the foregoing definition a "Commission Share"
shall mean each Class B Share which is issued under circumstances which would
normally give rise to an obligation of the holder of such Class B Share to pay a
CDSC upon redemption of such Share, including, without limitation,
3
<PAGE>
any Class B Share issued in connection with a permitted free exchange, and any
such Class B Share shall not cease to be a Commission Share prior to the
redemption (including a redemption in connection with a permitted free exchange)
or conversion even though the obligation to pay the CDSC shall have expired or
conditions for thereof still exist.
4. This Plan shall not take effect until it has been approved by a vote of
at least a majority (as defined in the Act) of the outstanding voting securities
of Class B Shares of the Fund.
5. This Plan shall become effective with respect to the Class B Shares upon
approval, together with any related agreements, by a majority vote of both (i)
the Board of Directors and (ii) those Directors who are not "interested persons"
of the Fund (as defined in the Act) and have no direct or indirect financial
interest in the operation of this Plan or any agreements related to it (the
"Qualified Directors"), cast in person at a meeting called for the purpose of
voting on this Plan and such related agreements.
6. This Plan shall continue in effect for so long as such continuance is
specifically approved at least annually in the manner provided for approval of
this Plan in paragraph 5 herein.
7. In each year that this Plan remains in effect, any person authorized to
direct the disposition of monies paid or payable by the Fund pursuant to this
Plan or any related agreement shall prepare and furnish to the Board and the
Board shall review, at least quarterly, written reports, complying with the
requirements of Rule 12b-1 under the Act, of the amounts expended under this
Plan and purposes for which such expenditures were made.
8. This Plan may be terminated at any time with respect to the Class B
Shares by a majority vote of the Qualified Directors or by vote of a majority of
the outstanding voting securities of Class B Shares.
9. This Plan may not be amended in order to increase materially the amount
of distribution expenses provided for in paragraph 1 herein unless such
amendment is approved by a majority (as defined in the Act) of the outstanding
voting securities of Class B Shares and no material amendment to this Plan shall
be made unless approved in the manner provided in paragraph 5 herein.
10. While this Plan shall be in effect, the selection and nomination of
Directors who are not interested persons of the Fund (as defined in the Act)
shall be committed to the discretion of the Directors then in office who are not
interested persons of the Fund.
4
<PAGE>
The Fund shall preserve copies of this Plan and any related agreements and
all reports made pursuant to paragraph 7 herein, for a period of not less than
six years from the date of this Plan, or the agreements or such report, as the
case may be, the first two years in an easily accessible place.
The Articles of Incorporation of the Fund, as amended, are on file with the
Department of Assessments and Taxation.
5
<PAGE>
EXHIBIT B
CLASS C SHARES
RULE 12B-1 DISTRIBUTION PLAN
This distribution plan (the "Rule 12b-1 Distribution Plan" or the "Plan")
has been adopted by the Class C shareholders of Phoenix-Goodwin Multi-Sector
Fixed Income Fund, Inc. (the "Fund"), a Maryland corporation, on
_________________, pursuant to Rule 12b-1 under the Investment Company Act of
1940, as amended (the "Act").
W H E R E A S:
The Fund is an open-end management investment company and is registered as
such under the Act. The Fund has a multi-class distribution system that allows
the Fund to offer investors the option of purchasing shares of separate share
classes. This Plan governs only the Class C Shares of the Fund. The Fund may,
from time to time, distribute shares of each class of the Fund through a
contractual arrangement (the "Distribution Agreement") with a principal
distributor for such class of shares duly qualified to act on behalf of the Fund
in such capacity (any such principal distributor, the "Principal Distributor"),
it being understood that the Fund may change the Principal Distributor for any
class of shares from time to time. The Board of Directors, including a majority
of the Qualified Directors (as defined in paragraph 4 herein), has determined to
adopt the Plan. In voting to approve the Plan, the Directors have determined, in
the exercise of their reasonable business judgment and in light of their
fiduciary duty, that there is a reasonable likelihood that this Plan will
benefit the Class C Shares of the Fund with respect to which this Plan will be
effective and its shareholders.
NOW, THEREFORE, in consideration of the foregoing, the Fund hereby adopts
this Plan in accordance with Rule 12b-1 under the Act on the following terms and
conditions:
1. The Trust shall pay to each Principal Distributor of Class C Shares a
distribution fee at the rate of three quarters of one percent (0.75%) per annum
of the average daily net asset value of such Class of Shares (the "Distribution
Fee") and a service fee at a rate of one quarter of one percent (0.25%) of the
average daily net asset value of such Class of Shares of the Trust. The fee is
paid to financial services firms including National Association of Securities
Dealers, Inc. ("NASD") member firms for continuous personal service by such
firms to investors in such Class C Shares.
<PAGE>
2. The amounts set forth in paragraph 1 of this Plan shall be paid for the
Principal Distributor's services and expenses as distributor of the Class C
Shares of the Fund and may be spent by the Principal Distributor, in its
discretion, on, among other things, compensation to and expenses (including
overhead and telephone expenses) of account executives or other employees of the
Principal Distributor or of other broker-dealers who engage in or support
distribution of shares; printing of prospectuses and reports for other than
existing shareholders; advertising; preparation, printing and distribution of
sales literature; and allowances to other broker-dealers.
3. This Plan shall not take effect until it has been approved by a vote of
at least a majority (as defined in the Act) of the outstanding voting securities
of Class C Shares of the Fund.
4. This Plan shall become effective with respect to the Class C Shares upon
approval, together with any related agreements, by a majority vote of both (i)
the Board of Directors and (ii) those Directors who are not "interested persons"
of the Fund (as defined in the Act) and have no direct or indirect financial
interest in the operation of this Plan or any agreements related to it (the
"Qualified Directors"), cast in person at a meeting called for the purpose of
voting on this Plan and such related agreements.
5. This Plan shall continue in effect for so long as such continuance is
specifically approved at least annually in the manner provided for approval of
this Plan in paragraph 4 herein.
6. In each year that this Plan remains in effect, any person authorized to
direct the disposition of monies paid or payable by the Fund pursuant to this
Plan or any related agreement shall prepare and furnish to the Board and the
Board shall review, at least quarterly, written reports, complying with the
requirements of Rule 12b-1 under the Act, of the amounts expended under this
Plan and purposes for which such expenditures were made.
7. This Plan may be terminated at any time with respect to the Class C
Shares by a majority vote of the Qualified Directors or by vote of a majority of
the outstanding voting securities of Class C Shares.
8. This Plan may not be amended in order to increase materially the amount
of distribution expenses provided for in paragraph 1 herein unless such
amendment is approved by a majority (as defined in the Act) of the outstanding
voting securities of Class C Shares and no material amendment to this Plan shall
be made unless approved in the manner provided in paragraph 4 herein.
9. While this Plan shall be in effect, the selection and nomination of
Directors who are not interested persons of the Fund (as defined in the Act)
2
<PAGE>
shall be committed to the discretion of the Directors then in office who are not
interested persons of the Fund.
The Fund shall preserve copies of this Plan and any related agreements and
all reports made pursuant to paragraph 6 herein, for a period of not less than
six years from the date of this Plan, or the agreements or such report, as the
case may be, the first two years in an easily accessible place.
The Articles of Incorporation of the Fund, as amended, are on file with the
Department of Assessments and Taxation.
3
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR FIXED INCOME FUND, INC. PROXY
The undersigned shareholder of Phoenix-Goodwin Multi-Sector Fixed Income
Fund, Inc. (the "Fund") revoking any and all previous proxies heretofore give
for shares of the Fund held by the undersigned, hereby constitutes and appoints
Philip R. McLoughlin and Pamela S. Sinofsky, and any and each of them, proxies
and attorneys of the undersigned, with power of substitution to each, for and in
the name of the undersigned to vote and act upon all matters (unless and except
as expressly limited below) at the Special Meeting of Shareholders of the Fund
to be held on May 16, 2000 at the offices of the Fund, 101 Munson Street,
Greenfield, Massachusetts, and at any and all adjournments thereof, with respect
to all shares of the Fund for which the undersigned is entitled to provide
instructions or with respect to which the undersigned would be entitled to
provide instructions or act, with all the powers the undersigned would possess
if personally present and to vote with respect to specific matters as set forth
below.
TO AVOID THE EXPENSE OF ADJOURNING THE MEETING TO A SUBSEQUENT DATE, PLEASE
RETURN THIS PROXY IN THE ENCLOSED SELF-ADDRESSED, POSTAGE-PAID ENVELOPE. YOU MAY
VOTE BY TELEPHONE BY CALLING TOLL-FREE 1-877-779-8683 AND FOLLOWING THE RECORDED
INSTRUCTIONS. PROMPT VOTING BY SHAREHOLDERS WILL AVOID THE COSTS ASSOCIATED WITH
FURTHER SOLICITATION.
THIS PROXY, IF PROPERLY EXECUTED, WILL BE VOTED IN THE MANNER AS DIRECTED HEREIN
BY THE UNDERSIGNED SHAREHOLDER. UNLESS OTHERWISE SPECIFIED IN THE SQUARES
PROVIDED, THE UNDERSIGNED'S VOTE WILL BE CAST "FOR" EACH PROPOSAL. IF NO
DIRECTION IS MADE FOR ANY PROPOSALS, THIS PROXY WILL BE VOTED "FOR" ANY AND ALL
SUCH PROPOSALS.
THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS OF THE FUND
WHO RECOMMEND A VOTE "FOR" EACH OF THE PROPOSALS
[X] Please mark vote as in this Example.
PROPOSAL 1. APPROVAL OF A NEW RULE 12b-1 DISTRIBUTION PLAN FOR CLASS B SHARES
[ ] FOR [ ] AGAINST [ ] ABSTAIN
PROPOSAL 2. APPROVAL OF A NEW RULE 12b-1 DISTRIBUTION PLAN FOR CLASS C SHARES
[ ] FOR [ ] AGAINST [ ] ABSTAIN
PROPOSAL 3. TO TRANSACT SUCH OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE
MEETING OR ANY ADJOURNMENT THEREOF
Please be sure to sign and date this Proxy.
Date:
_________________________ ____________________________
Shareholder sign here Co-owner sign here
NOTE: PLEASE SIGN EXACTLY AS YOU NAME APPEARS HEREON. IF SHARES ARE REGISTERED
IN MORE THAN ONE NAME, ALL REGISTERED SHAREHOLDERS SHOULD SIGH THIS PROXY; BUT
IF ONE SHAREHOLDER SIGNS, THIS SIGNATURE BINDS THE OTHER SHAREHOLDER. WHEN
SIGNING AS AN ATTORNEY, EXECUTOR, ADMINISTRATOR, AGENT, DIRECTOR, OR GUARDIAN,
OR CUSTODIAN FOR A MINOR, PLEASE GIVE FULL TITLE AS SUCH. IF A CORPORATION,
PLEASE SIGN IN FULL CORPORATE NAME BY AN AUTHORIZED PERSON. IF A PARTNERSHIP,
PLEASE SIGN IN PARTNERSHIP NAME BY AN AUTHORIZED PERSON.
THIS PROXY MAY BE REVOKED BY THE SHAREHOLDER(S) AT ANY TIME PRIOR TO THE SPECIAL
MEETING OF SHAREHOLDERS.
RECORD DATE SHARES:
