APRIL 30, 1996
Phoenix Multi-Sector
Short Term Bond Fund
Semiannual Report
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PHOENIX
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PHOENIX MULTI-SECTOR SHORT TERM BOND FUND
MARKET AND PORTFOLIO REVIEW
Fund Description
Phoenix Multi-Sector Short Term Bond Fund 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.
Investment Environment
Over the last six months, the outlook for the U.S. economy has shifted
dramatically. At year-end 1995, the consensus opinion on Wall Street was for
continued slow economic growth and benign inflation. During the first quarter
of 1996, however, a number of reports were released which suggested
construction markets were firming, job growth was up and the nation's
factories were busier. Bond investors reacted negatively to these new signs
of economic growth, pushing interest rates higher and bond prices lower.
Although some of these fears have moderated as of late, these
brighter-than-expected economic reports may have dampened hopes that the
Federal Reserve will cut short-term rates again anytime soon.
Portfolio Review
Despite a difficult bond market environment, the Fund turned in strong
results over this reporting period. For the six-month period ended April 30,
1996, the Fund's Class A shares produced a total return of 4.65% and Class B
shares returned 4.39%. As measured by the Merrill Lynch Medium Quality
Corporate Short-Term Bond Index, the market returned 2.47% for the same
period. All of these returns assume reinvestment of any distributions but
exclude the effect of sales charges. The portfolio's exposure to
investment-grade corporates, high-yield corporates and emerging markets debt,
was primarily responsible for the Fund's outperformance during this reporting
period.
Outlook
Our outlook for the bond market remains cautiously optimistic. In the
fixed-income marketplace, we believe traditional bond sectors still appear
overvalued, while less traditional sectors offer significant opportunity. We
expect to maintain our focus on emerging markets and are finding attractive
valuations in countries such as Brazil, Argentina, Indonesia and Mexico.
Taxable municipal bonds also appear to be attractive as yield spreads remain
considerably above comparably rated corporate debt. In the mortgage-backed
sector, we are focusing on commercial and non-agency residential
mortgage-backed securities. Lastly, we continue to de-emphasize agency
mortgage-backed securities as yield spreads remain historically tight.
With the potential for future increases in interest rates and slowing
corporate profits, we believe 1996 will be a challenging year for financial
markets. Although some level of caution is clearly warranted, we are still
finding attractive opportunities and will use the market's recent volatility
to our advantage. Moving ahead, we will continue our strategy of focusing on
undervalued fixed-income market sectors that we believe offer the best total
return potential.
INVESTMENTS AT APRIL 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
MOODY'S PAR
BOND VALUE
RATING (000) VALUE
------ ----- -----------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--3.1%
U.S. Treasury Notes--3.1%
U.S. Treasury Notes 5%, '99 Aaa $500 $ 485,000
---------
TOTAL U.S. GOVERNMENT SECURITIES
(Identified cost $485,229) 485,000
---------
NON-CONVERTIBLE BONDS--58.1%
Airlines--1.0%
AMR Corp. 7.75%, '97 Baa 155 158,289
---------
Auto & Trucks--1.8%
Cummins Engine, Inc. 10.39%, '96 Baa 275 282,218
---------
Banks--2.4%
Banponce Financial Corp. 5.48%, '98 Baa 375 365,167
---------
Entertainment, Leisure & Gaming--2.7%
Caesars World, Inc. 8.875%, '02 BBB(c) 250 263,125
Time Warner, Inc. 6.21%, '00 (d) BBB(c) 162 162,405
---------
425,530
---------
Hospital Management & Services--2.6%
Tenet Healthcare Corp. 9.625%, '02 Ba 375 402,188
---------
Metals & Mining--1.6%
USX Corp. 6.375%, '98 Baa 250 247,880
---------
Natural Gas--3.4%
Arkla, Inc. 9.875%, '97 Ba 250 257,218
Coastal Corp. 11.75%, '06 Baa 250 261,023
---------
518,241
---------
</TABLE>
See Notes to Financial Statements
1
<PAGE>
Phoenix Multi-Sector Short Term Bond Fund
<TABLE>
<CAPTION>
MOODY'S PAR
BOND VALUE
RATING (000) VALUE
------ ----- -----------
<S> <C> <C> <C>
Non-Agency Mortgage-Backed Securities--34.1%
Airplanes Pass Through Trust 1D 10.875%, '19 Ba $ 250 $ 260,625
Bear Stearns Mortgage 95-1, 2B3 144A 7.40%,
'10 (b) BB(c) 320 278,906
Countrywide Funding Corp. 93-12, B3 6.625%, '24 Baa 197 193,898
Eagle 96-1, B 6.55%, '02 Baa 500 498,906
Fleetwood Credit Corp. 96-A, B 6.95%, '11 A 300 300,281
G.E. Capital Corp. 94-26, B2 7.03%, '09 Ba 280 259,854
Green Tree Financial Corp. 93-3, A3 5.20%, '18 Aa 400 392,750
Green Tree Financial Corp. 96-1, A2 5.85%, '27 Aaa 250 239,688
Kidder Peabody Acceptance
Corp. 94-C2, D 7.18%, '05 BBB(c) 350 337,422
Merrill Lynch Mortgage, Inc. 95-C2, C 7.79%, '21 A 242 242,404
Nomura Asset Securities Corp. 94-MD2, A6 6.89%,
'03 (d) A(c) 195 193,407
Prudential Home Mortgage 93-L, 3B2 144A
6.641%, '23(b) BBB(c) 250 232,422
Resolution Trust Corp. 92-C3, B 9.05%, '23 AA(c) 188 192,084
Resolution Trust Corp. 93-C1, B 8.75%, '24 Aa 500 506,314
Resolution Trust Corp. 93-C3, A4 6.55%, '24 Aaa 94 93,318
Resolution Trust Corp. 93-C2, B 7.75%, '25 AA(c) 250 252,035
Resolution Trust Corp. 95-1, C2 7.50%, '28 Baa 332 324,923
Salomon Brothers Mortgage Trust VII93-C1, A1
6.47%, '23 Aa 139 138,552
SASC 96-CFL C 6.525%, '28 AA(c) 100 95,188
White Hall Partners 95-C1, B 144A 7.43%, '25 (b) AA(c) 250 248,633
---------
5,281,610
---------
Oil--2.3%
Tosco Corp. 9%, '97 Baa 350 357,095
---------
Paper & Forest Products--1.4%
Buckeye Cellulose 8.50%, '05 Ba 225 217,687
---------
Publishing, Broadcasting, Printing & Cable--1.2%
Rogers Communications, Inc. 9.125%, '06 BB(c) 200 191,250
---------
Telecommunications Equipment--2.0%
Panamsat L.P. 9.75%, '00 Ba 300 314,625
---------
Utility-Electric--1.6%
Coso Funding Corp. 144A 7.99%, '97(b) Baa 250 253,501
---------
TOTAL NON-CONVERTIBLE BONDS
(Identified cost $9,006,498) 9,015,281
---------
FOREIGN NON-CONVERTIBLE BONDS--10.1%
Argentina--4.9%
Bridas Corp. Sr. Note 12.50%, '99 BB(c) 250 264,375
Transportadora de Gas del Sur 10.25%, '01 BB(c) 500 502,500
---------
766,875
---------
Colombia--1.7%
Financiera Energ Nacional 144A 9%, '99 (b) BBB(c) 250 260,000
---------
Indonesia--1.6%
Asia Pulp & Paper Co.
Yankee 11.75%, '05 Ba 250 243,750
---------
Mexico--1.9%
Empresas ICA Sociedad Euro 9.75%, '98 B 300 297,375
---------
TOTAL FOREIGN NON-CONVERTIBLE BONDS
(Identified cost $1,558,872) 1,568,000
---------
FOREIGN GOVERNMENT SECURITIES--17.8%
Argentina--3.2%
Republic of Argentina
Bearer FRB 6.3125%,
'05 (d) BB(c) 644 491,472
---------
Brazil--4.4%
Republic of Brazil Discount
Series ZL 6.50%, '24 (d) B(c) 1,000 676,875
---------
Colombia--3.3%
Republic of Colombia Euro 9%, '97 BBB(c) 500 506,620
---------
Mexico--3.9%
United Mexican Discount B Euro 6.76563%,
'19(d)(e) Ba 750 601,406
---------
Philippines--1.2%
Central Bank of Philippines
NMB Euro 6.3125%, '05 (d) Ba 200 190,500
---------
Poland--1.8%
Poland Discount Euro 6.4375%, '24 (d) Baa 300 279,000
---------
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified cost $2,632,177) 2,745,873
---------
</TABLE>
See Notes to Financial Statements
2
<PAGE>
Phoenix Multi-Sector Short Term Bond Fund
<TABLE>
<CAPTION>
MOODY'S PAR
BOND VALUE
RATING (000) VALUE
------ ----- -----------
<S> <C> <C> <C>
MUNICIPAL BONDS--6.4%
Florida--3.2%
University of Miami
Exchange Revenue A 5.95%, '98 Aaa $500 $ 492,725
---------
New York--3.2%
Beth Israel Medical Center Taxable 6.52%, '97 Aaa 500 499,050
---------
TOTAL MUNICIPAL BONDS
(Identified cost $1,000,647) 991,775
---------
TOTAL LONG-TERM INVESTMENTS--95.5%
(Identified cost $14,683,423) 14,805,929
---------
SHORT-TERM OBLIGATIONS--3.4%
Commercial Paper--3.4%
Abbott Laboratories 5.25%, 5-14-96 A-1+ 530 528,995
---------
VALUE
---------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $528,995) $ 528,995
---------
TOTAL INVESTMENTS--98.9%
(Identified cost $15,212,418) 15,334,924(a)
Cash and receivables, less liabilities--1.1% 174,726
---------
NET ASSETS--100.0% $15,509,650
=========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $218,580 and gross
depreciation of $102,396 for income tax purposes. At April 30, 1996, the
aggregate cost of securities for federal income tax purposes was
$15,218,740. At October 31, 1995, the Fund had capital loss carryforwards
aggregating $500,786 available to offset future gains and expiring as
follows: $192,085 in 2002 and $308,701 in 2003.
(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,
1996, these securities amounted to a value of $1,273,462 or 8.2% of net
assets.
(c) As rated by Standard & Poor's, Fitch and/or Duff & Phelp's.
(d) Variable rate; interest rate shown reflects the rate currently in effect.
(e) Mexico Value Recovery Euro Rights (1,153,000 shares) incorporated as a
unit.
See Notes to Financial Statements
3
<PAGE>
Phoenix Multi-Sector Short Term Bond Fund
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Assets
Investment securities at value
(Identified cost $15,212,418) $15,334,924
Cash 7,542
Receivables
Interest 256,729
Receivable from adviser 9,877
Fund shares sold 564
Deferred organization expense 19,907
----------
Total assets 15,629,543
----------
Liabilities
Payables
Fund shares repurchased 30,767
Income distribution payable 17,439
Trustees' fee 8,101
Transfer agent fee 8,073
Distribution fee 5,110
Financial agent fee 377
Accrued expenses 50,026
----------
Total liabilities 119,893
----------
Net Assets $15,509,650
==========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $15,771,129
Distributions in excess of net investment income (16,060)
Accumulated net realized loss (367,925)
Net unrealized appreciation 122,506
----------
Net Assets $15,509,650
==========
Class A
Shares of beneficial interest outstanding,
$0.01 par value, unlimited authorization
(Net Assets $10,682,002) 2,228,396
Net asset value per share $4.79
Offering price per share $4.79/(1-2.25%) $4.90
Class B
Shares of beneficial interest outstanding,
$0.01 par value, unlimited authorization
(Net Assets $4,827,648) 1,007,017
Net asset value and offering price per share $4.79
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Investment Income
Interest $ 578,368
--------
Total investment income 578,368
--------
Expenses
Investment advisory fee 39,570
Distribution fee--Class A 12,130
Distribution fee--Class B 17,569
Financial agent fee 2,158
Transfer agent 29,347
Registration 22,478
Professional 18,851
Printing 11,116
Trustees 10,839
Amortization of deferred organization expense 8,385
Custodian 8,013
Miscellaneous 5,813
--------
Total expenses 186,269
Less expenses borne by investment adviser (102,611)
--------
Net expenses 83,658
--------
Net investment income 494,710
--------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 158,472
Net change in unrealized appreciation (depreciation) on
investments (22,525)
--------
Net gain on investments 135,947
--------
Net increase in net assets resulting from operations $ 630,657
========
</TABLE>
See Notes to Financial Statements
4
<PAGE>
Phoenix Multi-Sector Short Term Bond Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year
April 30, 1996 Ended
(Unaudited) October 31, 1995
--------------- ----------------
<S> <C> <C>
From Operations
Net investment income $ 494,710 $ 990,986
Net realized gain (loss) 158,472 (340,004)
Net change in unrealized appreciation (depreciation) (22,525) 716,254
------------- ---------------
Increase in net assets resulting from operations 630,657 1,367,236
------------- ---------------
From Distributions to Shareholders
Net investment income--Class A (342,247) (661,287)
Net investment income--Class B (153,318) (326,755)
------------- ---------------
Decrease in net assets resulting from distributions to shareholders (495,565) (988,042)
------------- ---------------
From Share Transactions
Class A
Proceeds from sales of shares (690,111 and 1,676,012 shares, respectively) 3,313,640 7,796,116
Net asset value of shares issued from reinvestment of distributions
(54,529 and 103,434 shares, respectively) 261,234 479,080
Cost of shares repurchased (477,486 and 1,851,728 shares, respectively) (2,283,100) (8,606,909)
------------- ---------------
Total 1,291,774 (331,713)
------------- ---------------
Class B
Proceeds from sales of shares (96,570 and 259,029 shares, respectively) 462,595 1,195,146
Net asset value of shares issued from reinvestment of distributions
(21,164 and 47,980 shares, respectively) 101,391 221,981
Cost of shares repurchased (92,797 and 717,637 shares, respectively) (443,799) (3,290,924)
------------- ---------------
Total 120,187 (1,873,797)
------------- ---------------
Increase (decrease) in net assets from share transactions 1,411,961 (2,205,510)
------------- ---------------
Net increase (decrease) in net assets 1,547,053 (1,826,316)
Net Assets
Beginning of period 13,962,597 15,788,913
------------- ---------------
End of period (including distributions in excess of net investment income
of ($16,060) and ($15,205), respectively) $15,509,650 $13,962,597
============= ===============
</TABLE>
See Notes to Financial Statements
5
<PAGE>
Phoenix Multi-Sector Short Term Bond Fund
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------
Six Months From
Ended Inception
4/30/96 Year Ended October 31, 7/6/92 to
(Unaudited) 1995 1994 1993 10/31/92
----------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $4.74 $4.61 $4.91 $4.83 $4.89
Income from investment operations
Net investment income 0.17(2) 0.33(2) 0.29(2) 0.32(2) 0.08(2)
Net realized and unrealized gain (loss) 0.05 0.13 (0.26) 0.08 (0.06)
--------- ------ ------ ------ ---------
Total from investment operations 0.22 0.46 0.03 0.40 0.02
--------- ------ ------ ------ ---------
Less distributions
Dividends from net investment income (0.17) (0.33) (0.29) (0.32) (0.08)
Dividends from net realized gains -- -- (0.03) -- --
Tax return of capital -- -- (0.01) -- --
--------- ------ ------ ------ ---------
Total distributions (0.17) (0.33) (0.33) (0.32) (0.08)
--------- ------ ------ ------ ---------
Change in net asset value 0.05 0.13 (0.30) 0.08 (0.06)
--------- ------ ------ ------ ---------
Net asset value, end of period $4.79 $4.74 $4.61 $4.91 $4.83
========= ====== ====== ====== =========
Total return (1) 4.65%(5) 10.27% 0.40% 8.49% 0.40%(5)
Ratios/supplemental data:
Net assets, end of period (thousands) $10,682 $9,303 $9,371 $6,829 $6,531
Ratio to average net assets of:
Operating expenses 1.00%(4) 1.00% 1.00% 1.00% 1.00%(4)
Net investment income 7.00%(4) 7.07% 5.99% 6.39% 5.79%(4)
Portfolio turnover 102%(5) 344% 121% 128% 6%(4)
</TABLE>
<TABLE>
<CAPTION>
Class B
-----------------------------------------------------------
Six Months From
Ended Inception
4/30/96 Year Ended October 31, 7/6/92 to
(Unaudited) 1995 1994 1993 10/31/92
----------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $4.74 $4.61 $4.91 $4.83 $4.89
Income from investment operations
Net investment income 0.16(3) 0.30(3) 0.27(3) 0.30(3) 0.07(3)
Net realized and unrealized gain (loss) 0.05 0.13 (0.26) 0.08 (0.06)
--------- ------ ------ ------ ---------
Total from investment operations 0.21 0.43 0.01 0.38 0.01
--------- ------ ------ ------ ---------
Less distributions
Dividends from net investment income (0.16) (0.30) (0.27) (0.30) (0.07)
Dividends from net realized gains -- -- (0.03) -- --
Tax return of capital -- -- (0.01) -- --
--------- ------ ------ ------ ---------
Total distributions (0.16) (0.30) (0.31) (0.30) (0.07)
--------- ------ ------ ------ ---------
Change in net asset value 0.05 0.13 (0.30) 0.08 (0.06)
--------- ------ ------ ------ ---------
Net asset value, end of period $4.79 $4.74 $4.61 $4.91 $4.83
========= ====== ====== ====== =========
Total return (1) 4.39%(5) 9.71% -0.03% 8.02% 0.20%(5)
Ratios/supplemental data:
Net assets, end of period (thousands) $4,828 $4,659 $6,418 $3,968 $1,357
Ratio to average net assets of:
Operating expenses 1.50%(4) 1.50% 1.45% 1.45% 1.45%(4)
Net investment income 6.51%(4) 6.59% 5.74% 5.79% 5.30%(4)
Portfolio turnover 102%(5) 344% 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
$0.03, $0.08, $0.08, $0.09 and $0.14, respectively.
(3) Includes reimbursement of operating expenses by investment adviser of
$0.03, $0.08, $0.08, $0.09 and $0.21, respectively.
(4) Annualized.
(5) Not annualized.
6
<PAGE>
PHOENIX MULTI-SECTOR SHORT TERM BOND FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1996 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix Multi-Sector Short Term Bond Fund (the "Fund"), formerly the Phoenix
Asset Reserve 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's investment
objective is to provide high current income relative to short-term
alternatives, while attempting to limit fluctuations in the net asset value
of Fund shares resulting from movements in interest rates. 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. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amount of assets, liabilities, revenues and
expenses. Actual results could differ from those estimates.
A. Security valuation:
Debt securities are valued on the basis of broker quotations or valuations
provided by a pricing service, approved by the Trustees, which utilizes
information with respect to market transactions in comparable securities,
quotations from dealers, and various relationships between securities in
determining value. Short-term investments having a remaining maturity of
less than 61 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. 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 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. 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 majority-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, 1996, the Adviser has
reimbursed the Fund $102,611 for such expenses.
7
<PAGE>
PHOENIX MULTI-SECTOR SHORT TERM BOND FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1996 (Unaudited) (Continued)
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 $730 for Class A shares and deferred sales
charges of $7,850 for Class B shares for the six months ended April 30, 1996. 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 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, 1996, $16,774 was
earned by the Distributor and $12,925 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, 1996, transfer agent fees were $29,347 of which PEPCO
retained $279 which is net of the fees paid to State Street.
At April 30, 1996, PHL and affiliates held 25,396 Class A shares of the
Fund with a value of $121,648.
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities, excluding short-term securities, for the
six months ended April 30, 1996, aggregated $15,983,628 and $14,066,584,
including $6,297,218 and $7,280,013, 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 MULTI-SECTOR
SHORT TERM BOND FUND
101 Munson Street
Greenfield, Massachusetts 01301
Trustees
C. Duane Blinn
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Francis E. Jeffries
Leroy Keith, Jr.
Philip R. McLoughlin
Everett L. Morris
James M. Oates
Calvin J. Pedersen
Philip R. Reynolds
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
Officers
Philip R. McLoughlin, President
Martin J. Gavin, Executive Vice President
Michael E. Haylon, 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
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
Legal Counsel
Dechert Price & Rhoads
1500 K Street, N.W.
Washington, D.C. 20005-1208
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<PAGE>
Phoenix Multi-Sector Short Term Bond Fund
P.O. Box 2200
Enfield, CT 06083-2200
Bulk Rate
U.S. Postage
PAID
Springfield, MA
Permit No. 444
[PHOENIX LOGO]
PHOENIX
DUFF&PHELPS
PDP 745 (6/96)
[DALBAR LOGO]
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