PHOENIX ASSET RESERVE
MARKET AND PORTFOLIO REVIEW
Fund Description
Phoenix Asset Reserve invests in a wide variety of short-term fixed-income
securities. These securities may include U.S. treasury, agency, corporate and
yankee bonds, as well as mortgage-backed and asset-backed securities. The Fund
emphasizes the most undervalued sectors of the market and de-emphasizes the most
overvalued sectors. The Fund's short duration limits the volatility of its net
asset value.
Investment Environment
Over the six-month reporting period ended April 30, 1995, the investment climate
has improved dramatically. After a disappointing 1994--a year which saw the
Federal Reserve Board repeatedly hike short-term interest rates to slow the
economy and ward off inflation--both stocks and bonds made an exceptionally
strong recovery in the first four months of 1995.
Many investors appear optimistic that the Fed applied the right amount of
pressure on the economy, without serious disruption to the business cycle.
Whether the Fed has successfully achieved a so-called "soft landing" remains to
be seen. Nevertheless, moderating economic growth and relatively subdued
inflation over the early months of 1995 have helped create a very positive
investment environment.
In the fixed-income market, the yield curve (which measures the difference
between short- and long-term interest rates) flattened significantly in
response to the Fed's aggressive policy and evidence of controlled inflation.
As a result, all sectors of the domestic market have produced positive
returns thus far in 1995. Emerging debt markets were hit hard, however, by
fallout from the devaluation of the Mexican peso last December. A number of
unrelated debt markets, including Argentina, Brazil and Poland, suffered
sharp losses over the early months of this six-month reporting period.*
Portfolio Review
The Fund posted a solid gain for this period, but fell short of the market
index. For the six months ended April 30, 1995, Class A shares provided a
total return of 3.29% and Class B shares returned 3.01%. As measured by the
Merrill Lynch Corporate Medium Quality Index,** the market returned 4.45% for
the same period. All of these figures assume reinvestment of any
distributions, but exclude the effect of sales charges.
The Fund trailed the benchmark due primarily to its holdings in the emerging
debt markets sector, which dropped 8.73% in this six-month timeframe.
Performance was also hampered by lack of exposure to agency mortgage-backed
securities. On the positive side, holdings in investment-grade corporate
bonds, commercial mortgage-backed securities and high-yield securities all
produced strong returns for the portfolio over this reporting period.
Outlook
Given the evidence of a slowing economy and relatively subdued inflation, our
outlook for the fixed-income market remains positive. Over the next six
months we expect to de-emphasize treasury securities in favor of other
sectors of the fixed-income market. We are maintaining our exposure to the
domestic high-yield sector, but have taken a more defensive stand, focusing
on top-tier issues with improving fundamentals. We continue to stress the
high-yield yankee sector, with a focus on Argentina and Brazil. Lastly, we
have increased our exposure to commercial non-agency mortgage-backed
securities since we are confident that valuations will continue to improve in
light of the positive fundamentals and improving market technicals.
*Foreign investing involves special risks, such as currency fluctuation, less
public disclosure as well as economic and political risks.
**The Merrill Lynch Corporate Medium Quality Index is an unmanaged but commonly
used index that tracks returns of corporate issues rated beween "BBB" and "A" by
Standard and Poor's, with maturities from one to three years.
1
<PAGE>
Phoenix Asset Reserve
INVESTMENTS AT APRIL 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
MOODY'S PAR
BOND VALUE
RATING (000) VALUE
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--12.2%
U.S. Treasury Notes--12.2%
U.S. Treasury Notes 6.50%, '97 Aaa $ 1,250 $ 1,247,852
U.S. Treasury Notes 7.25%, '98 Aaa 500 506,875
1,754,727
TOTAL U.S. GOVERNMENT SECURITIES
(Identified cost $1,760,059) 1,754,727
NON-CONVERTIBLE BONDS--56.4%
Airlines--1.4%
AMR Corp. Notes 6.25%, '95 Baa 50 49,940
AMR Corp. Notes 7.75%, '97 Baa 155 155,626
205,566
Banks--6.4%
Banponce 5.48%, '98 NR 375 351,097
Citicorp 9.25%, '95 A 150 150,518
Citicorp 9.42%, '95 A 100 100,398
Signet Banking Corp. 9.625%, '99 Baa 300 320,634
922,647
Chemical-Specialty--1.4%
Borden Chemical & Plastics
9.50%, '05 Ba 200 200,000
Diversified Financial Services--2.0%
Tenneco Credit Senior Notes 9%, '95 Baa 280 281,453
Entertainment, Leisure & Gaming--4.4%
Time Warner, Inc. 0%, '02 Ba 650 632,125
Hospital Management & Services--1.8%
National Medical Enterprises
9.625%, '02 Ba 250 258,750
Industrial--2.0%
Cummins Engine, Inc. 10.399%, '96 Baa 275 284,281
Metals & Mining--1.7%
USX Corp. Sr. Note 6.375%, '98 Baa 250 242,231
Natural Gas--1.8%
Arkla, Inc. 9.875%, '97 Ba 250 257,678
Non-Agency Mortgage Backed--23.8%
Countrywide Funding Corp.
93-12, B3 6.625%, '24 Baa 272 263,009
DLJ Mortgage Acceptance
92-M10, B 10%, '02 BBB((c)) 250 260,703
Non-Agency Mortgage Backed--continued
G. E. Capital Corp.
94-26, B2 7.03% '09 Ba $ 293 $ 266,458
Kidder Peabody Acceptance
Corp. 94-C2, D 7.18%, '05 BBB((c)) 350 325,937
Nomura Asset Securities Corp.
94-MD2, A6, 7.39%, '03 A((c)) 239 238,621
Prudential Home Mortgage 93-L
144A 6.641%, '23 (b) NR 250 223,320
Resolution Trust Corp. 93-N3
CL3 7.80%, '03 NR 250 244,062
Resolution Trust Corp. 91-M5
9%, '17 Aa 219 226,949
Resolution Trust Corp. 92-CHF,
B 7.15%, '20 AA((c)) 201 197,501
Resolution Trust Corp. 92-C3,
B 9.05%, '23 AA((c)) 221 225,039
Resolution Trust Corp. 93-C3,
A4 6.55%, '24 Aaa 195 188,290
Resolution Trust Corp. 95-1,
C2 7.50%, '28 BBB((c)) 400 388,119
Salomon Brothers Mortgage
Trust 93-C1, 6.47%, '23 Aa 379 372,985
3,420,993
Oil--2.5%
Tosco Corp. 9%, '97 Baa 350 358,750
Paper & Forest Products--1.9%
SD Warren Co. 144A 12%, '04
(b) B 250 270,938
Retail-Food--1.8%
Curtice-Burns Foods, Inc.
12.25%, '05 B 250 261,250
Utility-Electric--1.7%
Coso Funding Corp. 144A 7.99%,
'97 (b) Baa 250 246,562
Utility-Gas--1.8%
Crown Central Petroleum
10.875%, '05 Ba 250 252,500
TOTAL NON-CONVERTIBLE BONDS
(Identified cost $8,144,446) 8,095,724
FOREIGN NON-CONVERTIBLE BONDS--13.2%
Argentina--4.5%
Banco Rio de la Plata 8.50%,
'98 B 250 216,250
Compania Nav Perez Co. 144A
8.375%, '98 (b) NR 250 220,625
Telefonica de Argentina 144A
8.375%, '00 (b) NR 250 205,000
641,875
</TABLE>
See Notes to Financial Statements
2
<PAGE>
Phoenix Asset Reserve
<TABLE>
<CAPTION>
MOODY'S PAR
BOND VALUE
RATING (000) VALUE
<S> <C> <C> <C>
Canada--2.5%
Videotron Ltd. Sr Sub Notes
10.25%, '02 Ba $ 350 $ 356,125
Mexico--6.2%
Fomento Economico Mexicano
144A 9.50%, '97 (b) NR 250 230,000
Fomento Economico Mexicano
Euro 9.50%, '97 NR 250 230,000
Gruma, S.A. De C.V. 144A
9.75%, '98 (b) NR 250 211,875
Gruma S.A. De C.V. 9.75%, '98 NR 250 211,875
883,750
TOTAL FOREIGN NON-CONVERTIBLE BONDS
(Identified cost $2,048,027) 1,881,750
FOREIGN GOVERNMENT SECURITIES--7.4%
Argentina--3.1%
Republic of Argentina Bearer
FRB 7.3125%, '05 BB-((c)) 750 449,100
Brazil--1.4%
Rep of Brazil Par YL4 (4.25%,
4/96) 6%, '24 NR 500 200,000
Ecuador--0.5%
Republic of Ecuador PDI 20yr
Euro 7.25%, '15 NR 250 75,625
Poland--2.4%
Poland Discount Global Euro
7.125%, '24 NR 500 348,150
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified cost $984,678) 1,072,875
MUNICIPAL BONDS--2.1%
Pennsylvania--2.1%
Pennsylvania Economic Dev.
10.375%, '12 NR $ 300 $ 298,575
TOTAL MUNICIPAL BONDS
(Identified cost $300,000) 298,575
Total Long-Term Investments--91.3%
(Identified cost $13,237,210) 13,103,651
SHORT-TERM OBLIGATIONS--16.6%
Commercial Paper--16.6%
Anheuser-Busch Cos. Inc.,
5.90%, 5-1-95 P-1 480 480,000
Merrill Lynch 5.95%, 5-2-95 P-1 500 499,917
TDK USA 5.92%, 5-2-95 P-1 385 384,937
E.I. du Pont de Nemours 5.90%,
5-3-95 P-1 600 599,803
GTE North 5.90%, 5-3-95 P-1 420 419,862
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $2,384,519) 2,384,519
TOTAL INVESTMENTS--107.9%
(Identified cost $15,621,729) 15,488,170(a)
Cash & receivables, less liabilities (7.9%) (1,129,706)
NET ASSETS--100.0% $14,358,464
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $196,218 and gross
depreciation of $329,777 for income tax purposes. At April 30, 1995 the
aggregate cost of securities for federal income tax purposes approximates
book cost. At October 31, 1994 the Fund had capital loss carryforwards
aggregating $197,768 available to offset future gains and expiring in 2002.
(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, 1995
these securities amounted to a value of $1,608,320 or 11.2% of net assets.
(c) As rated by Standard & Poor's, Fitch and/or Duff & Phelp's.
See Notes to Financial Statements
3
<PAGE>
Phoenix Asset Reserve
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Assets
Investment securities at value
(Identified cost $15,621,729) $15,488,170
Receivables
Investment securities sold 261,917
Fund shares sold 87,217
Dividends and interest 183,697
Receivable from adviser 33,766
Deferred organization expense 36,650
Total assets 16,091,417
Liabilities
Payables
Investment securities purchased 1,529,879
Fund shares repurchased 22,000
Custodian 146,144
Dividends declared 10,911
Distribution fee 4,983
Transfer agent fee 4,606
Trustees' fee 2,637
Financial agent 350
Accrued expenses 11,443
Total liabilities 1,732,953
Net Assets $14,358,464
Net Assets Consist of:
Capital paid in on shares of beneficial interest $15,186,724
Distributions in excess of net investment income (7,520)
Accumulated net realized losses (687,181)
Net unrealized depreciation (133,559)
Net Assets $14,358,464
Class A
Shares of beneficial interest outstanding, $.01 par
value, unlimited authorization (Net Assets
$9,491,167) 2,060,398
Net asset value per share $4.61
Offering price per share
$4.61/(1-2.25%) $4.72
Class B
Shares of beneficial interest outstanding, $.01 par
value, unlimited authorization (Net Assets
$4,867,297) 1,056,513
Net asset value and offering price per share $4.61
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Investment Income
Interest $ 582,955
Total investment income 582,955
Expenses
Investment advisory fee 39,767
Distribution fee--Class A 12,789
Distribution fee--Class B 18,076
Financial agent fees 2,169
Registration 31,850
Transfer agent 27,173
Professional 15,422
Trustees 12,738
Printing 9,754
Custodian 7,530
Miscellaneous 15,093
Amortization of deferred organization expense 8,358
Total expenses 200,719
Less fees reimbursed by Adviser (115,599)
Net expenses 85,120
Net investment income 497,835
Net Realized and Unrealized Gain (Loss) on Investments
Net realized loss on securities (490,475)
Net realized gain on foreign currency transactions 1,062
Net unrealized appreciation on investment securities 437,664
Net loss on investments (51,749)
Net increase in net assets resulting from operations $ 446,086
</TABLE>
See Notes to Financial Statements
4
<PAGE>
Phoenix Asset Reserve
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year
April 30, 1995 Ended
(Unaudited) October 31, 1994
<S> <C> <C>
From Operations
Net investment income $ 497,835 $ 795,158
Net realized losses (489,413) (197,642)
Net unrealized appreciation (depreciation) 437,664 (553,898)
Increase in net assets resulting from operations 446,086 43,618
From Distributions to Shareholders
Net investment income--Class A (325,115) (512,877)
Net investment income--Class B (165,752) (291,165)
Net realized gains--Class A -- (42,320)
Net realized gains--Class B -- (23,734)
Decrease in net assets from distributions to shareholders (490,867) (870,096)
From Share Transactions
Class A
Proceeds from sales of shares (696,391 and 1,907,229 shares,
respectively) 3,167,998 9,055,762
Net asset value of shares issued from reinvestment of distributions
(50,318 and 75,198 shares, respectively) 228,375 387,214
Cost of shares repurchased (719,835 and 1,339,067 shares, respectively) (3,258,459) (6,389,169)
Total 137,914 3,053,807
Class B
Proceeds from sales of shares (175,946 and 944,497 shares,
respectively) 802,340 4,434,897
Net asset value of shares issued from reinvestment of distributions
(24,758 and 42,799 shares, respectively) 112,394 222,357
Cost of shares repurchased (536,899 and 402,570 shares, respectively) (2,438,316) (1,892,740)
Total (1,523,582) 2,764,514
(Decrease) increase in net assets from share transactions (1,385,668) 5,818,321
Net (decrease) increase in net assets (1,430,449) 4,991,843
Net Assets
Beginning of period 15,788,913 10,797,070
End of period (including distributions in excess of net investment
income of ($7,520) and ($14,488), respectively) $14,358,464 $15,788,913
</TABLE>
See Notes to Financial Statements
5
<PAGE>
Phoenix Asset Reserve
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A Class B
Six Months From Six Months From
Ended Year Year Inception Ended Year Year Inception
4/30/95 Ended Ended 7/6/92 to 4/30/95 Ended Ended 7/6/92 to
(Unaudited) 10/31/94 10/31/93 10/31/92 (Unaudited) 10/31/94 10/31/93 10/31/92
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset
value,
beginning
of
period $ 4.61 $ 4.91 $ 4.83 $ 4.89 $ 4.61 $ 4.91 $ 4.83 $ 4.89
Income
from
investment
operations
Net
investment
income 0.16((2)) 0.29((2)) 0.32((2)) 0.08((2)) 0.15((3)) 0.27((3)) 0.30((3)) 0.07((3))
Net
realized
and
unrealized
(loss)
gain -- (0.26) 0.08 (0.06) -- (0.26) 0.08 (0.06)
Total
from
investment
operations 0.16 0.03 0.40 0.02 0.15 0.01 0.38 0.01
Less
distributions
Dividends
from net
investment
income (0.16) (0.29) (0.32) (0.08) (0.15) (0.27) (0.30) (0.07)
Dividends
from net
realized
gains -- (0.03) -- -- -- (0.03) -- --
Tax
return
of
capital -- (0.01) -- -- -- (0.01) -- --
Total
distributions (0.16) (0.33) (0.32) (0.08) (0.15) (0.31) (0.30) (0.07)
Change in
net
asset
value -- (0.30) 0.08 (0.06) -- (0.30) 0.08 (0.06)
Net asset
value,
end of
period $ 4.61 $ 4.61 $ 4.91 $ 4.83 $ 4.61 $ 4.61 $ 4.91 $ 4.83
Total
return
((1)) 3.29%((5)) 0.40% 8.49% 0.40%((5) 3.01%((5) -0.03% 8.02% 0.20%((5))
Ratios/supplemental
data:
Net
assets,
end of
period
(thousands) $ 9,491 $9,371 $6,829 $ 6,531 $ 4,867 $6,418 $3,968 $ 1,357
Ratio to
average
net
assets
of:
Operating
expenses 1.00%((4)) 1.00% 1.00% 1.00%((4)) 1.50%((4)) 1.45% 1.45% 1.45%((4))
Net
investment
income 7.00%((4)) 5.99% 6.39% 5.79%((4)) 6.52%((4)) 5.74% 5.79% 5.30%((4))
Portfolio
turnover 336%((4)) 121% 128% 6%((4)) 336%((4)) 121% 128% 6%((4))
</TABLE>
((1))Maximum sales charges are not included in total return calculation.
((2))Includes reimbursement of operating expenses by investment adviser of
$0.04, $0.08, $0.09 and $0.14, respectively.
((3))Includes reimbursement of operating expenses by investment adviser of
$0.03, $0.08, $0.09 and $0.21, respectively.
((4))Annualized.
((5))Not annualized.
See Notes to Financial Statements
6
<PAGE>
PHOENIX ASSET RESERVE
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix Asset Reserve (the "Fund") is organized as a Massachusetts business
trust and is registered under the Investment Company Act of 1940, as amended,
as a diversified open-end management investment company. The Fund offers both
Class A and Class B shares. Class A shares are sold with a front-end sales
charge of up to 2.25%. Class B shares are sold with a contingent deferred
sales charge which declines from 2% to zero depending on the period of time
the shares are held. Both classes of shares have identical voting, dividend,
liquidation and other rights and the same terms and conditions, except that
each class bears different distribution expenses and has exclusive voting
rights with respect to its distribution plan. Income and expenses of the Fund
are borne pro rata by the holders of both classes of shares, except that each
class bears distribution expenses unique to that class.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
A. Security valuation:
Securities listed or traded on a national securities exchange are valued at
the last sale price, or if there had been no sale of the security on that
day, at the mean between the last bid and asked prices. Securities traded in
the over-the-counter market are valued at the mean between the last bid and
asked prices; and if no active market exists, at the bid price. Short-term
investments having a remaining maturity of less than sixty days are valued at
amortized cost which approximates market. All other securities and assets are
valued at their fair value as determined in good faith by or under the
direction of the Trustees.
B. Security transactions and related income:
Security transactions are recorded on the trade date. Interest income is
recorded on the accrual basis. Discounts and premiums are amortized to income
using the effective interest method. Dividend income is recorded on the
ex-dividend date or, in the case of certain foreign securities, as soon as
the Fund is notified. Realized gains and losses are determined on the
identified cost basis.
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, partnerships, 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, 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 date
of settlement. 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. Organization Expense
In 1992 the Fund incurred organizational expenses in the amount of $82,967.
The Fund has deferred these expenses and is amortizing such expenses on a
straight line basis over five years from the date of commencement of
operations.
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
As compensation for its services to the Fund, the Investment Adviser,
National Securities and Research Corporation, an indirect wholly-owned
subsidiary of Phoenix Home Life Mutual Insurance Company ("PHL"), is entitled
to a fee at an annual rate of 0.55% of the average daily net assets of the
Fund. The Adviser has agreed to assume expenses of the Fund in excess of
1.00% of Class A and 1.50% of the average aggregate daily net asset value of
Class B shares. For the six months ended April 30, 1995 the Adviser has
reimbursed the Fund $115,599 for such expenses.
As Distributor of the Fund's shares, Phoenix Equity Planning Corp. ("PEPCO"),
an indirect wholly-owned subsidiary of PHL, has advised the Fund that it
received selling commissions of $1,844 for Class A shares and deferred sales
charges of $19,942 for Class B shares for the six months ended April 30,
1995. In addition, the Fund pays PEPCO a distribution fee at an annual rate
of 0.25% for Class A shares and 0.75% for Class B shares of the
7
<PAGE>
PHOENIX ASSET RESERVE
NOTES TO FINANCIAL STATEMENTS
(Continued) (Unaudited)
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 Distributor 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, 1995, $17,160 was earned by the Distributor and
$13,705 was earned by unaffiliated participants.
As Financial Agent of the Fund, PEPCO receives a fee at an annual rate of
0.03% of the average daily net assets of the Fund for bookkeeping,
administration and pricing services. PEPCO serves as the Fund's Transfer
Agent with State Street Bank and Trust as sub-transfer agent. For the six
months ended April 30, 1995, transfer agent fees were $27,173 of which PEPCO
retained $189 which is net of the fees paid to State Street.
At April 30, 1995, PHL and affiliates held 1,038 Class A shares and 22,628
Class B shares of the Fund with a combined value of $108,861.
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities, excluding short-term securities, for the
six months ended April 30, 1995, aggregated $22,417,767 and $23,392,463,
including $17,076,218 and $15,355,961, respectively of U.S. Government
securities.
This report is authorized for use by other than shareholders only when
accompanied or preceded by the delivery of a current prospectus showing the
sales charge and other material information.
8
<PAGE>
PHOENIX ASSET RESERVE
101 Munson Street
Greenfield, Massachusetts 01301
Trustees
C. Duane Blinn
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Leroy Keith, Jr.
Philip R. McLoughlin
James M. Oates
Philip R. Reynolds
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
Officers
Philip R. McLoughlin, President
Martin J. Gavin, Executive Vice President
David L. Albrycht, Vice President
James M. Dolan, Vice President
William R. Moyer, Vice President
Leonard J. Saltiel, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Investment Adviser
National Securities & Research Corporation
One American Row
Hartford, Connecticut 06115-2520
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
Legal Counsel
Dechert Price & Rhoads
1500 K Street, N.W.
Washington, D.C. 20005-1208
<PAGE>
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<PAGE>
[THIS PAGE LEFT BLANK INTENTIONALLY]
<PAGE>
Phoenix Funds
Phoenix Asset Reserve
Semi-Annual Report
April 30, 1995
[photo of dollars]
[Phoenix logo] Phoenix Investments
Phoenix Asset Reserve
P.O. Box 2200
Enfield, CT 06083-2200
[Phoenix logo] Phoenix Investments
PEP 745 (6/95)
Bulk Rate Mail
U.S. Postage
PAID
Springfield, MA
Permit No. 444
<PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000884122
<NAME> PHOENIX ASSET RESERVE
<SERIES>
<NUMBER> 1
<NAME> CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1994
<PERIOD-START> NOV-01-1994
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 15,622
<INVESTMENTS-AT-VALUE> 15,488
<RECEIVABLES> 566
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 37
<TOTAL-ASSETS> 16,091
<PAYABLE-FOR-SECURITIES> 1,530
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<OTHER-ITEMS-LIABILITIES> 203
<TOTAL-LIABILITIES> 1,733
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 15,187
<SHARES-COMMON-STOCK> 2,060
<SHARES-COMMON-PRIOR> 2,034
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (8)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (687)
<ACCUM-APPREC-OR-DEPREC> (134)
<NET-ASSETS> 14,358
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 583
<OTHER-INCOME> 0
<EXPENSES-NET> (85)
<NET-INVESTMENT-INCOME> 498
<REALIZED-GAINS-CURRENT> (489)
<APPREC-INCREASE-CURRENT> 438
<NET-CHANGE-FROM-OPS> 447
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (325)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 696
<NUMBER-OF-SHARES-REDEEMED> (720)
<SHARES-REINVESTED> 50
<NET-CHANGE-IN-ASSETS> 259
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (198)
<OVERDISTRIB-NII-PRIOR> (14)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 40
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 201
<AVERAGE-NET-ASSETS> 14,710
<PER-SHARE-NAV-BEGIN> 4.61
<PER-SHARE-NII> 0.16
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> (0.16)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 4.61
<EXPENSE-RATIO> 1.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<ARTICLE> 6
<CIK> 0000884122
<NAME> PHOENIX ASSET RESERVE
<SERIES>
[NUMBER] 2
<NAME> CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1994
<PERIOD-START> NOV-01-1994
<PERIOD-END> APR-30-1995
[INVESTMENTS-AT-COST] 15,622
[INVESTMENTS-AT-VALUE] 15,488
[RECEIVABLES] 566
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 37
[TOTAL-ASSETS] 16,091
[PAYABLE-FOR-SECURITIES] 1,530
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 203
[TOTAL-LIABILITIES] 1,733
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 15,187
[SHARES-COMMON-STOCK] 1,057
[SHARES-COMMON-PRIOR] 1,393
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] (8)
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (687)
[ACCUM-APPREC-OR-DEPREC] (134)
[NET-ASSETS] 14,358
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 583
[OTHER-INCOME] 0
[EXPENSES-NET] (85)
[NET-INVESTMENT-INCOME] 498
[REALIZED-GAINS-CURRENT] (489)
[APPREC-INCREASE-CURRENT] 438
[NET-CHANGE-FROM-OPS] 447
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (166)
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 176
[NUMBER-OF-SHARES-REDEEMED] (537)
[SHARES-REINVESTED] 25
[NET-CHANGE-IN-ASSETS] (1,243)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (198)
[OVERDISTRIB-NII-PRIOR] (14)
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 40
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 201
[AVERAGE-NET-ASSETS] 14,710
[PER-SHARE-NAV-BEGIN] 4.61
[PER-SHARE-NII] 0.15
[PER-SHARE-GAIN-APPREC] 0
[PER-SHARE-DIVIDEND] (0.15)
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 4.61
[EXPENSE-RATIO] 1.50
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
