<PAGE>
Phoenix Investment Partners
APRIL 30, 1999
SEMIANNUAL REPORT
Phoenix Multi-Sector
Short Term Bond Fund
[LOGO] PHOENIX
INVESTMENT PARTNERS
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
[PHOTO]
We are pleased to provide this semiannual financial summary for the Phoenix
Multi-Sector Short Term Bond Fund for the six months ended April 30, 1999.
If you have any questions, please contact your financial advisor or call us at
1-800-243-1574 (option 0), between 8:00 a.m. and 6:00 p.m. Eastern Time, Monday
through Friday.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
Mutual funds are not insured by the FDIC; are not
deposits or other obligations of a bank and are not
guaranteed by a bank; and are subject to
investment risks, including possible loss of the
principal invested.
1
<PAGE>
PHOENIX MULTI-SECTOR SHORT TERM BOND FUND
INVESTMENTS AT APRIL 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------- -----------
<S> <C> <C> <C>
AGENCY MORTGAGE-BACKED SECURITIES--1.5%
GNMA 6.50%, 6/15/28..................... Aaa $ 779 $ 774,195
- --------------------------------------------------------------------------
TOTAL AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $774,879) 774,195
- --------------------------------------------------------------------------
MUNICIPAL BONDS--10.1%
CALIFORNIA--0.8%
San Diego County Pension Obligation
Revenue Taxable Series A 6.24%,
8/15/02................................. Aaa 400 405,000
DELAWARE--1.4%
Delaware River Port Authority PA & NJ
Revenue Taxable Series A 5.91%,
1/1/02.................................. Aaa 700 701,750
FLORIDA--1.0%
Tampa Solid Waste System Revenue Taxable
Series A 6.18%, 10/1/04................. Aaa 500 502,500
ILLINOIS--1.8%
Chicago O'Hare International Airport
Revenue Taxable 6.47%, 1/1/00........... Aaa 150 151,131
Chicago Tax Increment Taxable 6.25%,
6/1/02.................................. Aaa 750 760,312
-----------
911,443
-----------
MASSACHUSETTS--0.8%
Massachusetts State Port Authority
Revenue Taxable Series C 6.05%,
7/1/02.................................. Aa 400 402,500
MISSISSIPPI--1.7%
Mississippi State Taxable Series T
7.50%, 11/1/00.......................... Aa 855 881,719
NEW YORK--0.8%
New York State Dormitory Authority
Pension Obligation Revenue Taxable
6.45%, 10/1/99.......................... Baa 400 401,568
OKLAHOMA--1.8%
Oklahoma City Airport Trust Taxable 10%,
7/1/12.................................. Aaa 900 941,625
- --------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $5,143,467) 5,148,105
- --------------------------------------------------------------------------
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------- -----------
<S> <C> <C> <C>
ASSET-BACKED SECURITIES--10.9%
Capita Equipment Receivables Trust 97-1,
B 6.45%, 8/15/02........................ Aa $ 375 $ 376,016
ContiMortgage Home Equity Loan Trust
98-1, B 7.86%, 4/15/29.................. Baa 952 910,350
Continental Airlines, Inc. Series 97-2D
7.522%, 6/30/01......................... Ba 308 309,488
EQCC Home Equity Loan Trust 96-4, A4
6.47%, 8/15/10.......................... Aaa 390 388,671
First USA Credit Card Master Trust 98-1,
C 144A 6.50%, 1/18/06(b)................ BBB(c) 750 746,016
Fleetwood Credit Corp. Grantor Trust
96-A, B 6.95%, 10/17/11................. A 189 190,641
Ford Credit Auto Owner Trust 96-B, CTFS
6.55%, 2/15/02.......................... A 250 250,547
MBNA Master Credit Card Trust 98-C, C
144A 6.35%, 11/15/05(b)................. NR 525 521,391
Premier Auto Trust 97-3, B 6.52%,
1/6/03.................................. A 250 254,500
Team Fleet Financing Corp. 98-2A, C 144A
6.53%, 7/25/02(b)....................... BBB(c) 350 342,672
Team Fleet Financing Corp. 96-1, B 144A
7.10%, 12/15/02(b)...................... BBB(c) 500 493,828
Triangle Funding Ltd. 98-2A, 3 144A
6.85%, 10/15/04(b)(d)(f)................ BBB(c) 800 796,500
- --------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $5,642,674) 5,580,620
- --------------------------------------------------------------------------
CORPORATE BONDS--21.7%
AUTOMOBILES--1.0%
Titan Tire Corp. 7%, 2/11/00............ NR 500 495,000
BANKS (MONEY CENTER)--0.5%
First Union Institutional Capital I
8.04%, 12/1/26.......................... A 250 255,312
BROADCASTING (TELEVISION, RADIO & CABLE)--0.7%
SFX Broadcasting Corp. Series B 10.75%,
5/15/06................................. B 318 351,390
</TABLE>
2 See Notes to Financial Statements
<PAGE>
PHOENIX MULTI-SECTOR SHORT TERM BOND FUND
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------- -----------
<S> <C> <C> <C>
BUILDING MATERIALS--1.5%
Nortek, Inc. 9.875%, 3/1/04............. B $ 750 $ 785,625
COMPUTERS (SOFTWARE & SERVICES)--0.6%
Computer Associates International, Inc.
Series B 6.375%, 4/15/05................ Baa 320 310,800
ELECTRIC COMPANIES--1.0%
CalEnergy Co., Inc. 7.52%, 9/15/08...... Baa 500 527,500
ENTERTAINMENT--0.3%
SFX Entertainment, Inc. 144A 9.125%,
12/1/08(b).............................. B 140 145,250
FOODS--1.6%
Shoppers Food Warehouse 9.75%,
6/15/04................................. B 750 820,312
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--1.7%
Majestic Star Casino LLC 12.75%,
5/15/03................................. B 250 280,938
Station Casinos, Inc. 10.125%,
3/15/06................................. B 540 576,450
-----------
857,388
-----------
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.9%
Schein Pharmaceutical, Inc. 8.001%,
12/15/04(d)............................. B 510 476,850
INSURANCE (MULTI-LINE)--1.2%
Willis Corroon Corp. 144A 9%,
2/1/09(b)............................... Ba 600 610,500
LEISURE TIME (PRODUCTS)--0.4%
Bally Total Fitness Holding Corp. Series
B 9.875%, 10/15/07...................... B 215 220,644
MANUFACTURING (DIVERSIFIED)--0.5%
Polymer Group, Inc. Series B 9%,
7/1/07.................................. B 250 256,875
METALS MINING--0.0%
NSM Steel Ltd. Sr. 144A 12%,
2/1/06(b)............................... Caa 100 20,250
OIL & GAS (EXPLORATION & PRODUCTION)--1.3%
Benton Oil & Gas Co. 9.375%, 11/1/07.... B 500 335,000
Lomak Petroleum, Inc. 8.75%, 1/15/07.... B 375 315,000
-----------
650,000
-----------
PAPER & FOREST PRODUCTS--1.1%
S.D. Warren Co. Series B 12%,
12/15/04................................ B 500 542,500
PUBLISHING--2.0%
Charter Communications Holdings LLC 144A
8.625%, 4/1/09(b)....................... B 500 513,750
News America, Inc. 6.625%, 1/9/08....... Baa 500 500,625
-----------
1,014,375
-----------
RETAIL (SPECIALTY)--1.2%
Musicland Group, Inc. 9%, 6/15/03....... B 600 606,000
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------- -----------
<S> <C> <C> <C>
SERVICES (COMMERCIAL & CONSUMER)--2.0%
Anthony Crane Rentals Series B 10.375%,
8/1/08.................................. B $ 350 $ 355,250
Fisher Scientific International, Inc.
9%, 2/1/08.............................. B 325 329,469
Indesco International, Inc. 9.75%,
4/15/08................................. B 500 322,500
-----------
1,007,219
-----------
TELECOMMUNICATIONS (LONG DISTANCE)--1.1%
Global Crossing Holdings Ltd. 9.625%,
5/15/08................................. B 500 560,000
TEXTILES (APPAREL)--1.1%
Collins & Aikman Corp. 11.50%,
4/15/06................................. B 500 536,250
- --------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $11,252,877) 11,050,040
- --------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED SECURITIES--21.2%
BTC Mortgage Investors Trust 97-S1, D
144A 6.95%, 12/31/09(b)................. BBB(c) 750 749,766
Bear Stearns Mortgage Securities, Inc.
95-1, 1B3 144A 6.446%, 5/25/10(b)....... NR 557 524,698
Bear Stearns Mortgage Securities, Inc.
95-1, 2B3 144A 7.40%, 7/25/10(b)........ NR 443 434,359
CS First Boston Mortgage Securities
Corp. 97-SPCE, D 144A 7.332%,
4/20/08(b).............................. BBB(c) 550 537,625
Criimi Mae Trust I 96-C1, A2 144A 7.56%,
6/30/33(b).............................. BBB(c) 400 384,000
G.E. Capital Mortgage Services, Inc.
94-26, B2 6.912%, 7/25/09(d)............ Baa 233 228,440
G.E. Capital Mortgage Services, Inc.
96-8, 1M 7.25%, 5/25/26................. AA(c) 291 296,135
IMPAC CMB Trust 98-2, M3 7.25%,
4/25/28................................. A(c) 728 733,402
Merrill Lynch Mortgage Investors, Inc.
95-C3, A2 6.819%, 12/26/25(d)(f)........ AAA(c) 1,400 1,413,781
Norwest Asset Securities Corp. 99-10, B1
6.25%, 4/25/14.......................... AA(c) 523 510,199
PNC Mortgage Securities Corp. 97-6, A1
6.49%, 10/25/26......................... Aaa 188 189,369
PNC Mortgage Securities Corp. 96-3, B2
8%, 12/25/26............................ A 978 984,840
Prudential Securities Secured Financing
Corp. 98-C1, A1A1 6.105%, 11/15/02...... Aaa 868 870,853
Residential Asset Securitization Trust
96-A8, A1 8%, 12/25/26.................. AAA(c) 17 16,938
</TABLE>
See Notes to Financial Statements 3
<PAGE>
PHOENIX MULTI-SECTOR SHORT TERM BOND FUND
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------- -----------
<S> <C> <C> <C>
Residential Funding Mortgage Securities
I 93-S23, M3 6.50%, 6/25/08............. BBB+(c) $ 649 $ 643,988
Residential Funding Mortgage Securities
I 93-S29, M3 7%, 8/25/08................ AA+(c) 485 489,113
Residential Funding Mortgage Securities
I 96-S8, A4 6.75%, 3/25/11.............. AAA(c) 87 87,054
Resolution Trust Corp. 92-C3, B 9.05%,
8/25/23................................. AA(c) 192 191,943
Resolution Trust Corp. 94-C1, C 8%,
6/25/26................................. A(c) 500 503,750
Structured Asset Securities Corp. 95-C1,
D 7.375%, 9/25/24....................... BBB(c) 1,000 1,001,542
- --------------------------------------------------------------------------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $10,778,959) 10,791,795
- --------------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--13.3%
ARGENTINA--2.1%
Republic of Argentina RegS 8.75%,
7/10/02................................. Ba 250(e) 228,835
Republic of Argentina Bearer FRB 5.938%,
3/31/05(d).............................. Ba 930 827,700
-----------
1,056,535
-----------
BRAZIL--1.0%
Republic of Brazil 11.625%, 4/15/04..... B 500 490,000
BULGARIA--0.9%
Republic of Bulgaria IAB Series PDI Euro
5.875%, 7/28/11(d)...................... B 250 169,531
Republic of Bulgaria FLIRB Series A
Bearer 2.50%, 7/28/12(d)................ B 500 304,687
-----------
474,218
-----------
COLOMBIA--0.9%
Republic of Colombia 10.875%, 3/9/04.... Baa 415 437,306
COSTA RICA--1.3%
Republic of Costa Rica 144A 9.335%,
5/15/09(b)(g)........................... Ba 650 643,942
CROATIA--2.0%
Croatia Series B 5.813%, 7/31/06(d)..... Baa 974 798,369
Croatia Series A 5.813%, 7/31/10(d)..... Baa 300 234,750
-----------
1,033,119
-----------
PANAMA--1.9%
Republic of Panama RegS 7.875%,
2/13/02................................. Ba 1,000 975,000
PHILIPPINES--1.5%
Republic of Philippines 8.875%,
4/15/08................................. Ba 750 766,875
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------- -----------
<S> <C> <C> <C>
POLAND--0.4%
Poland Bearer PDI 5%, 10/27/14(d)....... Baa $ 250 $ 231,719
SOUTH KOREA--1.3%
Republic of Korea 8.75%, 4/15/03........ Baa 650 686,563
- --------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(IDENTIFIED COST $6,769,726) 6,795,277
- --------------------------------------------------------------------------
FOREIGN CORPORATE BONDS--18.7%
ARGENTINA--2.4%
Cia Transporte Energia 144A 8.625%,
4/1/03(b)............................... BBB-(c) 500 480,000
Telefonica de Argentina 144A 9.125%,
5/7/08(b)............................... Ba 250 241,875
Transportadora de Gas del Sur Series
TGS3 10.25%, 4/25/01.................... Ba 500 515,000
-----------
1,236,875
-----------
BERMUDA--0.1%
AES China Generating Co. 10.125%,
12/15/06................................ Ba 105 71,400
CANADA--0.8%
Imax Corp. 7.875%, 12/1/05.............. Ba 400 399,000
CHILE--1.4%
Banco Santiago SA 7%, 7/18/07........... Baa 250 230,938
Compania Sud Americana de Vapores 144A
7.375%, 12/8/03(b)...................... BBB(c) 500 475,000
-----------
705,938
-----------
COLOMBIA--1.5%
Financiera Energetica Nacional SA EMTN
9%, 11/8/99............................. BBB(c) 750 753,750
KAZAKHSTAN--0.6%
Kazkommertsbank International 144A
11.25%, 5/8/01(b)....................... B 500 305,000
MEXICO--6.1%
Banco Nacional de Mexico SA US$
Remittance Master Trust 144A 7.57%,
12/31/00(b)............................. BBB+(c) 442 439,202
Bufete Industrial RegS Series B-22
11.375%, 7/15/99........................ B 500 472,500
Empresas ICA Sociedad RegS 11.875%,
5/30/01................................. B 250 255,625
Gruma SA de CV 7.625%, 10/15/07......... Ba 250 235,000
Grupo Elektra SA de C.V. 12.75%,
5/15/01................................. B(c) 250 248,125
</TABLE>
4 See Notes to Financial Statements
<PAGE>
PHOENIX MULTI-SECTOR SHORT TERM BOND FUND
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------- -----------
<S> <C> <C> <C>
MEXICO--CONTINUED
Grupo Elektra SA de C.V. RegS 12.75%,
5/15/01................................. B(c) $ 250 $ 248,125
Grupo Industrial Durango 12%, 7/15/01... B 350 349,125
Nacional Financiera SNC EMTN 144A 9.75%,
3/12/02(b).............................. Ba 500 508,250
Vicap SA 10.25%, 5/15/02................ Ba 350 348,250
-----------
3,104,202
-----------
POLAND--1.0%
TPSA Finance BV 144A 7.125%,
12/10/03(b)............................. Baa 500 510,625
SOUTH KOREA--2.9%
Korea Development Bank 7.125%,
9/17/01................................. Baa 500 501,250
Korea Development Bank 7.125%,
4/22/04................................. Baa 1,000 993,750
-----------
1,495,000
-----------
UNITED KINGDOM--1.0%
Bridas Corp 12.50%, 11/15/99............ Ba 500 511,875
VENEZUELA--0.9%
PDVSA Finance Ltd. Series 98-1 6.45%,
2/15/04................................. A 500 458,435
- --------------------------------------------------------------------------
TOTAL FOREIGN CORPORATE BONDS
(IDENTIFIED COST $9,723,728) 9,552,100
- --------------------------------------------------------------------------
<CAPTION>
SHARES
-------
<S> <C> <C> <C>
PREFERRED STOCKS--0.6%
TELECOMMUNICATIONS (LONG DISTANCE)--0.6%
Global Crossing Holdings Ltd. PIK
10.50%.................................. 2,500 290,000
- --------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $248,125) 290,000
- --------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--98.0%
(IDENTIFIED COST $50,334,435) 49,982,132
- --------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ------- --------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--1.9%
COMMERCIAL PAPER--1.9%
Goldman Sachs Group, Inc. 4.92%,
5/3/99.................................. A-1+ $ 985 $ 984,731
- ------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $984,731) 984,731
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS--99.9%
(IDENTIFIED COST $51,319,166) 50,966,863(a)
Cash and receivables, less liabilities--0.1% 32,212
--------------
NET ASSETS--100.0% $ 50,999,075
--------------
--------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $747,266 and gross
depreciation of $1,099,569 for federal income tax purposes. At April 30,
1999, the aggregate cost of securities for federal income tax purposes was
$51,319,166.
(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,
1999, these securities amounted to a value of $10,424,499 or 20.4% of net
assets.
(c) As rated by Standard & Poor's, Fitch or Duff & Phelps.
(d) Variable or step coupon security; interest rate shown reflects the rate
currently in effect.
(e) Par value represents Argentine Pesos.
(f) All or portion segregated as collateral.
(g) When issued.
See Notes to Financial Statements
5
<PAGE>
Phoenix Multi-Sector Short Term Bond Fund
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $51,319,166) $ 50,966,863
Cash 9,246
Receivables
Interest 879,606
Investment securities sold 581,408
Fund shares sold 136,642
Receivable from adviser 57,415
Prepaid expenses 1,319
--------------
Total assets 52,632,499
--------------
LIABILITIES
Payables
Investment securities purchased 1,379,586
Fund shares repurchased 64,588
Income distribution payable 39,730
Distribution fee 17,399
Transfer agent fee 14,381
Trustees' fee 7,184
Financial agent fee 5,607
Accrued expenses 104,949
--------------
Total liabilities 1,633,424
--------------
NET ASSETS $ 50,999,075
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 54,071,708
Undistributed net investment loss (26,181)
Accumulated net realized loss (2,694,149)
Net unrealized depreciation (352,303)
--------------
NET ASSETS $ 50,999,075
--------------
--------------
CLASS A
Shares of beneficial interest outstanding, $0.01 par value,
unlimited authorization (Net Assets $28,809,098) 6,121,730
Net asset value per share $4.71
Offering price per share $4.71/(1-2.25%) $4.82
CLASS B
Shares of beneficial interest outstanding, $0.01 par value,
unlimited authorization (Net Assets $12,220,783) 2,602,074
Net asset value and offering price per share $4.70
CLASS C
Shares of beneficial interest outstanding, $0.01 par value,
unlimited authorization (Net Assets $9,969,194) 2,118,864
Net asset value and offering price per share $4.70
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 2,264,172
--------------
Total investment income 2,264,172
--------------
EXPENSES
Investment advisory fee 149,387
Distribution fee, Class A 39,703
Distribution fee, Class B 45,065
Distribution fee, Class C 26,356
Financial agent fee 35,135
Transfer agent 39,799
Professional 20,852
Registration 17,725
Custodian 15,456
Printing 12,127
Trustees 8,601
Miscellaneous 22,950
--------------
Total expenses 433,156
Less expenses borne by investment adviser (117,964)
--------------
Net expenses 315,192
--------------
NET INVESTMENT INCOME 1,948,980
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (310,238)
Net realized loss on foreign currency transactions (33,673)
Net change in unrealized appreciation (depreciation) on
investments 1,025,047
--------------
NET GAIN ON INVESTMENTS 681,136
--------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 2,630,116
--------------
--------------
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Phoenix Multi-Sector Short Term Bond Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
4/30/99 Year Ended
(Unaudited) 10/31/98
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 1,948,980 $ 3,323,904
Net realized gain (loss) (343,911) (2,207,274)
Net change in unrealized appreciation
(depreciation) 1,025,047 (1,377,771)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 2,630,116 (261,141)
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (1,241,441) (2,076,744)
Net investment income, Class B (435,676) (750,987)
Net investment income, Class C (394,942) (439,980)
Net realized gains, Class A -- (623,397)
Net realized gains, Class B -- (231,491)
Net realized gains, Class C -- (40,577)
------------ ------------
DECREASE IN NET ASSETS RESULTING FROM
DISTRIBUTIONS TO SHAREHOLDERS (2,072,059) (4,163,176)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(2,158,334 and 6,014,412 shares,
respectively) 10,149,229 29,551,389
Net asset value of shares issued from
reinvestment of distributions
(213,745 and 481,339 shares,
respectively) 1,004,585 2,357,562
Cost of shares repurchased (3,377,973
and 5,014,505 shares, respectively) (15,887,328) (24,593,058)
------------ ------------
Total (4,733,514) 7,315,893
------------ ------------
CLASS B
Proceeds from sales of shares (526,271
and 1,098,057 shares, respectively) 2,469,447 5,370,293
Net asset value of shares issued from
reinvestment of distributions
(68,208 and 150,247 shares,
respectively) 319,852 735,674
Cost of shares repurchased (622,031
and 656,994 shares, respectively) (2,917,623) (3,148,967)
------------ ------------
Total (128,324) 2,957,000
------------ ------------
CLASS C
Proceeds from sales of shares (763,248
and 3,178,002 shares, respectively) 3,577,546 15,654,043
Net asset value of shares issued from
reinvestment of distributions
(67,462 and 90,036 shares,
respectively) 317,007 436,654
Cost of shares repurchased (1,001,818
and 1,091,595 shares, respectively) (4,693,236) (5,287,237)
------------ ------------
Total (798,683) 10,803,460
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (5,660,521) 21,076,353
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (5,102,464) 16,652,036
NET ASSETS
Beginning of period 56,101,539 39,449,503
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($26,181) AND $96,898, RESPECTIVELY] $ 50,999,075 $ 56,101,539
------------ ------------
------------ ------------
</TABLE>
See Notes to Financial Statements 7
<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
ENDED YEAR ENDED OCTOBER 31
4/30/99 --------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 4.66 $ 5.06 $ 4.91 $ 4.74 $ 4.61 $ 4.91
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.17(2) 0.34(2) 0.34(2) 0.33(2) 0.33(2) 0.29(2)
Net realized and unrealized gain
(loss) 0.06 (0.29) 0.14 0.17 0.13 (0.26)
----- ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT OPERATIONS 0.23 0.05 0.48 0.50 0.46 0.03
----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment income (0.18) (0.34) (0.33) (0.33) (0.33) (0.29)
Dividends from net realized gains -- (0.11) -- -- -- (0.03)
Tax return of capital -- -- -- -- -- (0.01)
----- ----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS (0.18) (0.45) (0.33) (0.33) (0.33) (0.33)
----- ----- ----- ----- ----- -----
CHANGE IN NET ASSET VALUE 0.05 (0.40) 0.15 0.17 0.13 (0.30)
----- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 4.71 $ 4.66 $ 5.06 $ 4.91 $ 4.74 $ 4.61
----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- -----
Total return(1) 5.05%(4) 0.85% 10.08% 10.91% 10.27% 0.40%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $28,809 $33,212 $28,557 $13,702 $9,303 $9,371
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.00%(3) 1.00% 1.00% 1.00% 1.00% 1.00%
Net investment income 7.34%(3) 6.90% 6.54% 6.88% 7.07% 5.99%
Portfolio turnover 72%(4) 126% 246% 232% 344% 121%
</TABLE>
(1) Maximum sales charges are not reflected in the total return calculation.
(2) Includes reimbursement of operating expenses by investment adviser of
$0.01, $0.03, $0.04, $0.06, $0.08 and $0.08, respectively.
(3) Annualized
(4) Not annualized
8 See Notes to Financial Statements
<PAGE>
Phoenix Multi-Sector Short Term Bond Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31
4/30/99 --------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 4.65 $ 5.06 $ 4.91 $ 4.74 $ 4.61 $ 4.91
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.16(2) 0.31(2) 0.31(2) 0.31(2) 0.30(2) 0.27(2)
Net realized and unrealized gain
(loss) 0.06 (0.29) 0.15 0.17 0.13 (0.26)
----- ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT OPERATIONS 0.22 0.02 0.46 0.48 0.43 0.01
----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment income (0.17) (0.32) (0.31) (0.31) (0.30) (0.27)
Dividends from net realized gains -- (0.11) -- -- -- (0.03)
Tax return of capital -- -- -- -- -- (0.01)
----- ----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS (0.17) (0.43) (0.31) (0.31) (0.30) (0.31)
----- ----- ----- ----- ----- -----
CHANGE IN NET ASSET VALUE 0.05 (0.41) 0.15 0.17 0.13 (0.30)
----- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 4.70 $ 4.65 $ 5.06 $ 4.91 $ 4.74 $ 4.61
----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- -----
Total return(1) 4.79%(5) 0.12% 9.51% 10.36% 9.71% (0.03)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $12,221 $12,225 $10,318 $5,943 $4,659 $6,418
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.50%(4) 1.50% 1.50% 1.50% 1.50% 1.45%
Net investment income 6.83%(4) 6.44% 6.05% 6.38% 6.59% 5.74%
Portfolio turnover 72%(5) 126% 246% 232% 344% 121%
</TABLE>
<TABLE>
<CAPTION>
CLASS C
------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
4/30/99 ENDED 10/1/97 TO
(UNAUDITED) 10/31/98 10/31/97
<S> <C> <C> <C>
Net asset value, beginning of period $ 4.66 $ 5.06 $ 5.15
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.17(3) 0.34(3) 0.03(3)
Net realized and unrealized gain
(loss) 0.04 (0.30) (0.09)
----- ----- -----
TOTAL FROM INVESTMENT OPERATIONS 0.21 0.04 (0.06)
----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment income (0.17) (0.33) (0.03)
Dividends from net realized gains -- (0.11) --
Tax return of capital -- -- --
----- ----- -----
TOTAL DISTRIBUTIONS (0.17) (0.44) (0.03)
----- ----- -----
CHANGE IN NET ASSET VALUE 0.04 (0.40) (0.09)
----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 4.70 $ 4.66 $ 5.06
----- ----- -----
----- ----- -----
Total return(1) 4.69%(5) 0.59% (1.30)%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $ 9,969 $10,665 $ 575
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.25%(4) 1.25% 1.25%(4)
Net investment income 7.08%(4) 6.70% 5.51%(4)
Portfolio turnover 72%(5) 126% 246%(5)
</TABLE>
(1) Maximum sales charges are not reflected in the total return calculation.
(2) Includes reimbursement of operating expenses by investment adviser of
$0.01, $0.03, $0.04, $0.06, $0.08 and $0.08, respectively.
(3) Includes reimbursement of operating expenses by investment adviser of
$0.01, $0.03 and $0.04, respectively.
(4) Annualized
(5) Not annualized
See Notes to Financial Statements
9
<PAGE>
PHOENIX MULTI-SECTOR SHORT TERM BOND FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix Multi-Sector Short Term Bond Fund (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'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
Class A, Class B and Class C 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. Class C shares are sold with no sales charge. All classes of
shares have identical voting, dividend, liquidation and other rights and the
same terms and conditions, except that each class bears different distribution
expenses and has exclusive voting rights with respect to its distribution plan.
Income and expenses of the Fund are borne pro rata by the holders of all classes
of shares, except that each class bears distribution expenses unique to that
class.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with 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 which utilizes information with respect to recent
sales, market transactions in comparable securities, quotations from dealers,
and various relationships between securities in determining value. Short-term
investments having a remaining maturity of 60 days or less are valued at
amortized cost which approximates market. All other securities and assets are
valued at 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, 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. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS:
The Fund may engage in when-issued or delayed delivery transactions. The Fund
records when-issued securities on the trade date and maintains collateral for
the securities purchased. Securities purchased on a when-issued or delayed
delivery basis begin earning interest on the settlement date.
10
<PAGE>
PHOENIX MULTI-SECTOR SHORT TERM BOND FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999 (UNAUDITED) (CONTINUED)
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
As compensation for its services to the Fund, the adviser, Phoenix Investment
Counsel, Inc. ("PIC"), an indirect majority-owned subsidiary of Phoenix Home
Life Mutual Insurance Company ("PHL"), is entitled to a fee at an annual rate of
0.55% of the average daily net assets of the Fund. The Adviser has agreed to
assume expenses of the Fund in excess of 1.00%, 1.50% and 1.25% of the average
aggregate daily net asset value of Class A, Class B and Class C shares,
respectively. For the six months ended April 30, 1999, the Adviser has
reimbursed the Fund $117,964 for such expenses.
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 $1,896 for Class A shares and deferred sales
charges of $19,211 for Class B shares and $492 for Class C shares for the six
months ended April 30, 1999. In addition, the Fund pays PEPCO a distribution fee
at an annual rate of 0.25% for Class A shares, 0.75% for Class B shares and
0.50% for Class C shares of the average daily net assets of the Fund. The
Distribution Plan for Class A shares provides for fees to be paid up to a
maximum on an annual basis of 0.30%; the 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, 1999, $43,418 was retained by
the Distributor, $58,006 was paid to unaffiliated participants, and $9,700 was
paid to W.S. Griffith, an indirect subsidiary of PHL.
As Financial Agent of the Fund, PEPCO receives a financial agent fee equal to
the sum of (1) the documented cost of fund accounting and related services
provided by PFPC Inc. (subagent to PEPCO), plus (2) the documented cost to PEPCO
to provide financial reporting, tax services and oversight of subagent's
performance. The current fee schedule of PFPC Inc. ranges from 0.085% to 0.0125%
of the average daily net asset values of the Fund. Certain minimum fees and fee
waivers may apply.
PEPCO serves as the Fund's Transfer Agent with State Street Bank and Trust as
sub-transfer agent. For the six months ended April 30, 1999, transfer agent fees
were $39,799 of which PEPCO retained $2,738 which is net of the fees paid to
State Street.
At April 30, 1999, PHL and affiliates held 31,920 Class A shares and 21,990
Class C shares of the Fund with a combined value of $253,695.
3. PURCHASE AND SALE OF SECURITIES
During the six months ended April 30, 1999, purchased and sales of
investments, excluding short-term securities and U.S. Government and agency
securities, amounted to $36,189,122 and $37,920,268, respectively. Purchases and
sales of long-term U.S. Government and agency securities amounted to $2,411,451
and $5,196,774, respectively.
4. CREDIT RISK
In countries with limited or developing markets, investments may present
greater risk than in more developed markets and the prices of such investments
may be volatile. The consequences of political, social or economic changes in
these markets may have disruptive effects on the market prices of these
investments and the income they generate, as well as a Fund's ability to
repatriate such amounts.
5. CAPITAL LOSS CARRYFORWARDS
The Fund has a capital loss carryover of $2,039,934, expiring in 2006, which
may be used to offset future capital gains.
This report is not authorized for distribution to prospective investors in the
Phoenix Multi-Sector Short Term Bond Fund unless preceded or accompanied by an
effective prospectus which includes information concerning the sales charge,
Fund's record and other pertinent information.
11
<PAGE>
PHOENIX MULTI-SECTOR
SHORT TERM BOND FUND
101 Munson Street
Greenfield, Massachusetts 01301
TRUSTEES
Robert Chesek
E. Virgil Conway
Harry Daizell-Payne
Francis E. Jeffries
Leroy Keith, Jr.
Philip R. McLoughlin
Everett L. Morris
James M. Oates
Calvin J. Pedersen
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
OFFICERS
Philip R. McLoughlin, President
Michael E. Haylon, Executive Vice President
John F. Sharry, Executive Vice President
James D. Wehr, Senior Vice President
David L. Albrycht, Vice President
William R. Moyer, Vice President
Leonard J. Saltiel, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
INVESTMENT ADVISER
Phoenix Investment Counsel, Inc.
56 Prospect Street
Hartford, CT 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
HOW TO CONTACT US
The Fund Connection 1-800-243-1574
Customer Service 1-800-243-1574 (option 0)
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
World Wide Web Address:
WWW.PHOENIXINVESTMENTS.COM
<PAGE>
PHOENIX EQUITY PLANNING CORPORATION ---------------
PO Box 2200 Bulk Rate Mail
Enfield CT 06083-2200 U.S. Postage
PAID
Springfield, MA
Permit No. 444
---------------
[LOGO] PHOENIX
INVESTMENT PARTNERS
PXP 745 (6/99)
