<PAGE>
Phoenix Investment Partners
Annual Report
October 31, 1999
Goodwin
Phoenix-Goodwin
Multi-Sector Short
Term Bond Fund
[LOGO]PHOENIX
INVESTMENT PARTNERS
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
[PHOTO]
We are pleased to provide this annual report for the
Phoenix-Goodwin Multi-Sector Short Term Bond Fund for the 12
months ended October 31, 1999. On the following pages, your Fund's
portfolio manager reviews market events over the last year and
discusses his investment strategy. We hope you find his comments
informative.
As the year comes to a close, this may be a good time to keep in
mind a few "basics of investing" to help you take a long-term
market perspective. As the year comes to a close, this may be a
good time to keep in mind a few "basics of investing" to help you
take a long-term market perspective.
REMAIN FOCUSED ON YOUR LONG-TERM INVESTMENT STRATEGY. Redeeming an investment
when the market drops or a fund's share price falls can work against you over
time. You could miss out on opportunities for your investment to grow when the
market or the fund's share price begins to move up. And over time, that could
make a big difference in how successful you are in achieving your financial
goals.
DIVERSIFY YOUR PORTFOLIO. Spreading your investments among different asset
classes and investment styles helps reduce risk. If one type of investment
doesn't perform well over a certain time period, it may be offset by the good
results of another investment.
TAKE ADVANTAGE OF DOLLAR-COST AVERAGING. You can make market fluctuations work
to your advantage by investing a set amount of money at regular intervals. This
is called dollar-cost averaging, and it means that when prices are low you will
be buying more units and when prices are high, you'll buy less. Of course,
periodic investment plans do not assure a profit or protect against a loss in
declining markets. This type of plan involves continuous investments in
securities regardless of fluctuating price levels. Investors should consider
their financial ability to continue purchases through periods of low price
levels.
If you have any questions, please contact your financial advisor or call us at
1-800-243-1574 between 8:00 a.m. and 6:00 p.m. Eastern Time, Monday through
Friday.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
NOVEMBER 19, 1999
Mutual funds are not insured by the FDIC; are not
deposits or other obligations of a bank and are not
guaranteed by a bank; and are subject to
investment risks, including possible loss of the
principal invested.
1
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR SHORT TERM BOND FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGER, DAVID L. ALBRYCHT, CFA
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: Phoenix-Goodwin Multi-Sector Short Term Bond Fund is appropriate for
investors seeking high current income from a broadly diversified short-term bond
fund. Investors should note that the Fund may hold foreign bonds, and foreign
investments pose additional risk, such as currency fluctuation, less public
disclosure, and political and economic uncertainty. The Fund may also invest in
high-yielding fixed-income securities that are generally subject to greater
market fluctuations and risk of loss of income and principal than are
investments in lower-yielding fixed-income securities.
Q: HOW HAS THE FUND PERFORMED OVER THE LAST 12 MONTHS?
A: For the fiscal year ended October 31, 1999, Class A shares returned 5.57%,
Class B shares returned 5.04%, and Class C shares returned 5.07% compared with a
return of 4.26% for the Merrill Lynch Medium Quality Corporate Short Term Bond
Index(1) and an average return of 1.44% for a peer universe of 93 short to
intermediate investment-grade debt funds, according to Lipper, Inc. All
performance figures assume reinvestment of distributions and exclude the effect
of sales charges.
Q: CAN YOU PROVIDE A BRIEF OVERVIEW OF THE MARKET OVER THE LAST 12 MONTHS?
A: The bond market is definitely not a repeat of last year. Last year we saw
Russia default, hedge funds unwind around the world, a global liquidity crisis
erupt, and a Fed response of lowering interest rates. Now we are experiencing a
record supply of issues in non-Treasury sectors, Y2K fears, a reduced role for
Wall Street as a market liquidity provider, and a Fed bias toward higher rates.
These were the concerns in the third quarter, but investors have come to realize
that these fears were overblown, and now we are seeing a reversal in yield
spreads. On October 5 of last year, the two-year Treasury yielded 4.02%. On
November 8 of this year, it yielded 5.72%. The difference for the 30-year
Treasury is even more dramatic. Last October 5, it yielded 4.71% compared with
6.06% on November 8, 1999. The "flight to quality" environment has reversed
itself, and for most of this reporting period, higher-yielding sectors were the
best performing.
The Fund performed very well during this period, with higher-yielding
sectors being among the best performers in the market. We have maintained our
strategy of investing in sectors with the best relative values, and while this
hurt performance last year, it has benefited results this year. Some of the best
contributors to performance were our holdings in the cable and
telecommunications industries.
Q: HOW IS THE FUND CURRENTLY POSITIONED?
A: We are continuing to follow our investment strategy of investing in the
sectors that offer the best relative value. This approach often leads us to
emphasize evolving sectors of the bond market where inefficiencies exist that we
believe can lead to significant upside potential. For example, our current
sector strategy in emerging-markets bonds emphasizes attractive opportunities in
countries
(1) THE MERRILL LYNCH MEDIUM QUALITY CORPORATE SHORT TERM BOND INDEX IS AN
UNMANAGED, COMMONLY USED MEASURE OF TOTAL RETURN PERFORMANCE OF CORPORATE
BONDS WITH MATURITIES OF 1-2.99 YEARS AND MEDIUM QUALITY RATINGS. THE INDEX
IS NOT AVAILABLE FOR DIRECT INVESTMENT.
2
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR SHORT TERM BOND FUND (CONTINUED)
like Poland and Mexico. The portfolio is well diversified by country. We are
purchasing sovereign debt, with good liquidity, and emphasizing dollar-
denominated securities.
Our current strategy in the corporate high-yield sector is to keep the
portfolio evenly split between BB-rated and B-rated issues. We believe there are
attractive opportunities in the European market, particularly in the cable,
telecommunications, and noncyclical sectors, and are focusing our attention
there now.
Q: WHAT IS YOUR OUTLOOK?
A: We believe the current environment is very favorable for fixed-income
investing. The U. S. economy remains surprisingly strong, and although inflation
has picked up momentum, it is still very low. Real yields remain attractive by
historical standards, and all spread sectors now offer exceptional value. For
example, as of October 6, the yield spread for domestic high-yield issues, as
measured by the CS First Boston High Yield Index(2), was 632 basis points over
Treasuries compared with the historical average of 520 basis points.
NOVEMBER 15, 1999
(2) THE CS FIRST BOSTON HIGH YIELD INDEX IS AN UNMANAGED, COMMONLY USED MEASURE
OF TOTAL RETURN PERFORMANCE OF HIGH-YIELD BONDS. THE INDEX IS NOT AVAILABLE
FOR DIRECT INVESTMENT.
3
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR SHORT TERM BOND FUND
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 10/31/99
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR 5 YEARS TO 10/31/99 DATE
------ ------- ----------- ------------
<S> <C> <C> <C> <C>
Class A Shares at NAV(2) 5.57% 7.47% 6.33% 7/6/92
Class A Shares at POP(3) 3.19 6.98 6.00 7/6/92
Class B Shares at NAV(2) 5.04 6.88 5.76 7/6/92
Class B Shares with CDSC(4) 3.57 6.88 5.76 7/6/92
Class C Shares at NAV(2) 5.07 -- 2.05 10/1/97
Merrill Lynch Medium Quality
Corporate Short-Term Bond
Index(7) 4.26 6.95 Note 5 Note 5
</TABLE>
(1) Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
(2) "NAV" (Net Asset Value) total returns do not include the effect of any
sales charge.
(3) "POP" (Public Offering Price) total returns include the effect of the
maximum front-end 2.25% sales charge.
(4) CDSC (contingent deferred sales charge) is applied to redemptions of
certain classes of shares that do not have a sales charge applied at the
time of purchase. CDSC charges for B shares decline from 2% to 0% over a
three year period.
(5) Index performance is 6.40% for Class A and Class B (since 6/30/92) and
5.82% for Class C (since 9/30/97), respectively.
(6) This chart illustrates POP returns on Class A and CDSC returns for Class B
since inception.
(7) The Merrill Lynch Medium Quality Corporate Short-Term Bond Index is an
unmanaged, commonly used measure of total return performance of corporate
bonds with maturities of 1-2.99 years and medium quality ratings. The
index's performance does not reflect sales charges.
All returns represent past performance which may not be indicative of
future performance. The investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
GROWTH OF $10,000 PERIODS ENDING 10/31
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PHOENIX-GOODWIN PHOENIX-GOODWIN MERRILL LYNCH MEDIUM QUALITY
MULTI-SECTOR SHORT A MULTI-SECTOR SHORT B CORPORATE SHORT-TERM BOND INDEX
<S> <C> <C> <C>
7/6/92 $9,775 $10,000 $10,000
10/30/92 $9,814 $10,007 $10,281
10/29/93 $10,647 $10,810 $11,049
10/31/94 $10,689 $10,806 $11,263
10/31/95 $11,788 $11,855 $12,332
10/31/96 $13,075 $13,084 $13,159
10/31/97 $14,393 $14,330 $14,110
10/30/98 $14,516 $14,348 $15,118
10/29/99 $15,324 $15,071 $15,762
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
7/6/92 in Class A shares and reflects the maximum sales charge of 2.25% on the
initial investment. Performance assumes dividends and capital gains are
reinvested. The performance of other share classes will be greater or less than
that shown based on differences in inception dates, fees and sales charges.
SECTOR WEIGHTINGS 10/31/99
As a percentage of bond holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Non-Agency Mortgage-Backed 25%
Corporate 23%
Municipal 14%
Foreign Corporate 13%
Asset-Backed 12%
Foreign Government 11%
Agency Mortgage-Backed 2%
</TABLE>
4 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR SHORT TERM BOND FUND
TEN LARGEST HOLDINGS AT OCTOBER 31, 1999 (AS A PERCENTAGE OF TOTAL NET ASSETS)
<TABLE>
<C> <S> <C>
1. Merrill Lynch Mortgage Investors, Inc. 3.0%
NON-AGENCY MORTGAGE-BACKED SECURITY
2. Century Communications Corp. 2.2%
CORPORATE BOND
3. Safeway, Inc. 2.2%
CORPORATE BOND
4. Structured Asset Securities Corp. 95-C1, D 2.2%
NON-AGENCY MORTGAGE-BACKED SECURITY
5. Texas Water Resources Finance Authority 2.1%
MUNICIPAL BOND
6. PNC Mortgage Securities Corp. 2.1%
NON-AGENCY MORTGAGE-BACKED SECURITY
7. Oklahoma City Airport Trust 2.0%
MUNICIPAL BOND
8. Republic of Argentina 1.9%
FOREIGN GOVERNMENT SECURITY
9. ContiMortgage Home Equity Loan Trust 1.9%
ASSET-BACKED SECURITY
10. Mississippi State 1.9%
MUNICIPAL BOND
</TABLE>
INVESTMENTS AT OCTOBER 31, 1999
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------ -----------
<S> <C> <C> <C>
AGENCY MORTGAGE-BACKED SECURITIES--1.5%
GNMA 6.50%, 6/15/28..................... Aaa $ 735 $ 702,481
- ---------------------------------------------------------------------------
TOTAL AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $731,361) 702,481
- ---------------------------------------------------------------------------
MUNICIPAL BONDS--13.8%
CALIFORNIA--0.9%
San Diego County Pension Obligation
Revenue Taxable Series A 6.24%,
8/15/02................................. Aaa 400 396,000
FLORIDA--1.1%
Tampa Solid Waste System Revenue Taxable
Series A 6.18%, 10/1/04................. Aaa 500 486,875
ILLINOIS--1.9%
Chicago O'Hare International Airport
Revenue Taxable 6.47%, 1/1/00........... Aaa 150 150,022
Chicago Tax Increment Taxable 6.25%,
6/1/02.................................. Aaa 750 743,438
-----------
893,460
-----------
MASSACHUSETTS--0.8%
Massachusetts State Port Authority
Revenue Taxable Series C 6.05%,
7/1/02.................................. Aa 400 394,000
MISSISSIPPI--1.9%
Mississippi State Taxable Series T
7.50%, 11/1/00.......................... Aa 855 864,901
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------ -----------
<S> <C> <C> <C>
NEW JERSEY--1.6%
New Jersey State Taxable Series G
6.375%, 8/1/03.......................... Aa $ 750 $ 742,500
OKLAHOMA--2.0%
Oklahoma City Airport Trust Taxable 10%,
7/1/12.................................. Aaa 900 918,738
PENNSYLVANIA--1.5%
Delaware River Port Authority PA & NJ
Revenue Taxable Series A 5.91%,
1/1/02.................................. Aaa 700 689,500
TEXAS--2.1%
Texas Water Resources Finance Authority
Revenue Taxable 6%, 8/15/02............. Aaa 1,000 983,750
- ---------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $6,489,522) 6,369,724
- ---------------------------------------------------------------------------
ASSET-BACKED SECURITIES--12.3%
Advanta Equipment Receivables 98-1, A4
5.98%, 12/15/06......................... Aaa 500 491,953
Capita Equipment Receivables Trust 97-1,
B 6.45%, 8/15/02........................ Aa 375 371,824
ContiMortgage Home Equity Loan Trust
98-1, B 7.86%, 4/15/29.................. Baa 952 870,782
Continental Airlines, Inc. Series 97-2D
7.522%, 6/30/01......................... Ba 215 213,634
</TABLE>
See Notes to Financial Statements 5
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR SHORT TERM BOND FUND
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------ -----------
<S> <C> <C> <C>
EQCC Home Equity Loan Trust 96-4, A4
6.47%, 8/15/10.......................... Aaa $ 103 $ 101,399
Fleetwood Credit Corp. Grantor Trust
96-A, B 6.95%, 10/17/11................. A 155 155,366
Ford Credit Auto Owner Trust 96-B, CTFS
6.55%, 2/15/02.......................... A 250 250,234
Garanti Grantor Trust 97-A 144A 7.31%
4/15/02(b).............................. BBB-(c) 416 390,852
Green Tree Home Improvement Loan Trust
99-E, A3 7.18%, 6/15/15................. AAA(c) 750 748,238
MBNA Master Credit Card Trust 98-C, C
144A 6.35%, 11/15/05(b)................. BBB(c) 525 507,937
Premier Auto Trust 97-3, B 6.52%,
1/6/03.................................. A 250 250,038
Premier Auto Trust 97-2, B 6.53%,
12/6/03................................. A 500 499,995
Triangle Funding Ltd. 98-2A, 3 144A
8.03%, 10/15/04(b)(d)................... BBB(c) 800 795,000
- ---------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $5,763,915) 5,647,252
- ---------------------------------------------------------------------------
CORPORATE BONDS--22.2%
AUTO PARTS & EQUIPMENT--1.0%
Collins & Aikman Corp. 11.50%, 4/15/06.. B 500 475,000
AUTOMOBILES--1.1%
Titan Tire Corp. 7%, 2/11/00............ NR 500 496,250
BANKS (MONEY CENTER)--0.5%
First Union Institutional Capital I
8.04%, 12/1/26.......................... A 250 237,188
BROADCASTING (TELEVISION, RADIO & CABLE)--2.2%
Century Communications Corp. 9.75%,
2/15/02................................. B 1,000 1,016,250
BUILDING MATERIALS--1.6%
Nortek, Inc. 9.875%, 3/1/04............. B 750 736,875
COMMUNICATIONS EQUIPMENT--1.1%
Williams Communications Group, Inc.
10.875%, 10/1/09........................ B 500 513,750
ELECTRIC COMPANIES--1.1%
CalEnergy Co., Inc. 7.52%, 9/15/08...... Baa 500 499,375
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------ -----------
<S> <C> <C> <C>
ENTERTAINMENT--0.3%
SFX Entertainment, Inc. 9.125%,
12/1/08................................. B $ 140 $ 129,500
FOODS--1.7%
SUPERVALU, Inc. 9.75%, 6/15/04.......... B 750 796,875
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--1.7%
Horseshoe Gaming LLC Series B 9.375%,
6/15/07................................. B 500 497,500
International Game Technology 7.875%,
5/15/04................................. Ba 300 288,000
-----------
785,500
-----------
INSURANCE (MULTI-LINE)--1.1%
Willis Corroon Corp. 9%, 2/1/09......... Ba 600 531,000
MANUFACTURING (SPECIALIZED)--0.7%
Fisher Scientific International, Inc.
9%, 2/1/08.............................. B 325 307,125
OIL & GAS (EXPLORATION & PRODUCTION)--0.7%
Benton Oil & Gas Co. 9.375%, 11/1/07.... B 500 314,375
PAPER & FOREST PRODUCTS--1.2%
S.D. Warren Co. Series B 12%,
12/15/04................................ B 500 550,000
PUBLISHING--1.0%
News America, Inc. 6.625%, 1/9/08....... Baa 500 467,500
RETAIL (FOOD CHAINS)--2.2%
Safeway, Inc. 7%, 9/15/02............... Baa 1,000 999,120
RETAIL (SPECIALTY)--1.2%
Musicland Group, Inc. 9%, 6/15/03....... B 600 550,500
SERVICES (COMMERCIAL & CONSUMER)--0.7%
Anthony Crane Rentals LP Series B
10.375%, 8/1/08......................... B 350 304,500
TELECOMMUNICATIONS (LONG DISTANCE)--1.1%
Global Crossing Holdings Ltd. 9.625%,
5/15/08................................. Ba 500 506,250
- ---------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $10,660,221) 10,216,933
- ---------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED
SECURITIES--24.7%
BTC Mortgage Investors Trust 97-S1, D
144A 6.95%, 12/31/09(b)................. BBB(c) 750 744,375
</TABLE>
6 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR SHORT TERM BOND FUND
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------ -----------
<S> <C> <C> <C>
Bear Stearns Mortgage Securities, Inc.
95-1, 1B3 144A 6.441%, 5/25/10(b)....... NR $ 533 $ 493,268
Bear Stearns Mortgage Securities, Inc.
95-1, 2B3 144A 7.40%, 7/25/10(b)........ NR 421 403,759
CS First Boston Mortgage Securities
Corp. 97-SPCE C 144A 7.077%,
2/20/07(b).............................. NR 750 723,984
CS First Boston Mortgage Securities
Corp. 98-C2, E 7.13%, 1/15/12........... Baa 250 212,656
Countrywide Funding Corp. 99-3, AF5
7.73%, 9/25/27.......................... Aaa 600 603,194
Criimi Mae Trust I 96-C1, A2 144A 7.56%,
6/30/33(b).............................. BBB(c) 400 379,750
G.E. Capital Mortgage Services, Inc.
94-26, B2 6.91%, 7/25/09(d)............. Baa 221 212,473
G.E. Capital Mortgage Services, Inc.
96-8, 1M 7.25%, 5/25/26................. AA(c) 289 280,192
IMPAC CMB Trust 98-2, M3 7.25%,
4/25/28................................. A(c) 572 568,544
Merrill Lynch Mortgage Investors, Inc.
95-C3, A2 6.805%, 12/26/25(d)........... AAA(c) 1,400 1,388,625
Norwest Asset Securities Corp. 99-10, B1
6.25%, 4/25/14.......................... AA(c) 513 473,547
PNC Mortgage Securities Corp. 97-6, A1
6.49%, 10/25/26......................... Aaa 144 144,461
PNC Mortgage Securities Corp. 96-3, B2
8%, 12/25/26............................ A 972 968,845
Prudential Securities Secured Financing
Corp. 98-C1, A1A1 6.105%, 11/15/02...... Aaa 834 825,520
Residential Funding Mortgage Securities
I 93-S23, M3 6.50%, 6/25/08............. BBB+(c) 620 597,301
Residential Funding Mortgage Securities
I 93-S29, M3 7%, 8/25/08................ AA+(c) 465 451,749
Residential Funding Mortgage Securities
I 96-S8, A4 6.75%, 3/25/11.............. AAA(c) 84 82,217
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------ -----------
<S> <C> <C> <C>
Resolution Trust Corp. 92-C3, B 9.05%,
8/25/23................................. AA(c) $ 101 $ 100,171
Resolution Trust Corp. 94-C1, C 8%,
6/25/26................................. A(c) 500 501,250
Structured Asset Securities Corp. 95-C1,
D 7.375%, 9/25/24....................... BBB(c) 1,000 993,125
Structured Asset Securites Corp. 95-C4,
E 144A 8.71%, 6/25/26(b)................ BB(c) 250 240,230
- ---------------------------------------------------------------------------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $11,566,088) 11,389,236
- ---------------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--10.3%
ALGERIA--0.5%
Algeria Unaffected Loan, 6.75%,
3/4/00.................................. NR 250 246,875
ARGENTINA--1.9%
Republic of Argentina Series B 0%,
4/15/01................................. BBB(c) 1,000 888,500
BULGARIA--0.7%
Republic of Bulgaria FLIRB Series A
Bearer 2.75%, 7/28/12(d)................ B 500 337,500
COLOMBIA--1.7%
Republic of Colombia 10.875%, 3/9/04.... Ba 750 755,625
COSTA RICA--1.4%
Republic of Costa Rica 144A 9.335%,
5/15/09(b).............................. Ba 650 658,125
CROATIA--1.5%
Croatia Series B 6.456%, 7/31/06(d)..... Baa 519 445,918
Croatia Series A 6.456%, 7/31/10(d)..... Baa 300 243,000
-----------
688,918
-----------
PANAMA--1.6%
Republic of Panama RegS 7.875%,
2/13/02................................. Ba 750 727,500
POLAND--1.0%
Poland Bearer PDI 6%, 10/27/14(d)....... Baa 500 443,750
- ---------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(IDENTIFIED COST $4,713,901) 4,746,793
- ---------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements 7
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR SHORT TERM BOND FUND
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------ -----------
<S> <C> <C> <C>
FOREIGN CORPORATE BONDS--13.2%
CHILE--0.5%
Banco Santiago SA 7%, 7/18/07........... Baa $ 250 $ 221,250
COLOMBIA--1.6%
Financiera Energetica Nacional SA EMTN
9%, 11/8/99............................. BB+(c) 750 751,875
MEXICO--5.3%
Banco Nacional de Mexico SA US$
Remittance Master Trust 144A 7.57%,
12/31/00(b)............................. BBB+(c) 321 321,083
Empresas ICA Sociedad Series 2 Tranche A
RegS 144A 11.875%, 5/30/01(b)........... B 250 240,000
Gruma SA de C.V. 7.625%, 10/15/07....... Ba 250 221,250
Grupo Elektra SA de C.V. 12.75%,
5/15/01................................. B(c) 500 482,500
Grupo Industrial Durango 12.625%,
8/1/03.................................. B 350 341,687
Nacional Financiera SNC RegS 22%,
5/20/02................................. Ba 5,000 517,128
Vicap SA 10.25%, 5/15/02................ Ba 350 325,063
-----------
2,448,711
-----------
POLAND--1.1%
TPSA Finance BV 144A 7.125%,
12/10/03(b)............................. Baa 500 490,000
SOUTH KOREA--2.6%
Korea Development Bank 7.125%, 4/22/04.. Baa 500 488,750
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------ -----------
<S> <C> <C> <C>
SOUTH KOREA--CONTINUED
Korea Development Bank 7.375%, 9/17/04.. Baa $ 750 $ 731,250
-----------
1,220,000
-----------
UNITED KINGDOM--1.1%
Bridas Corp. 12.50%, 11/15/99........... B 500 502,500
VENEZUELA--1.0%
PDVSA Finance Ltd. Series 98-1 6.45%,
2/15/04................................. A 500 451,305
- ---------------------------------------------------------------------------
TOTAL FOREIGN CORPORATE BONDS
(IDENTIFIED COST $6,220,763) 6,085,641
- ---------------------------------------------------------------------------
<CAPTION>
SHARES
------
PREFERRED STOCKS--0.6%
<S> <C> <C> <C>
TELECOMMUNICATIONS (LONG DISTANCE)--0.6%
Global Crossing Holdings Ltd. PIK
10.50%.................................. 2,500 263,750
- ---------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $248,125) 263,750
- ---------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS--98.6%
(IDENTIFIED COST $46,393,896) 45,421,810(a)
Cash and receivables, less liabilities--1.4% 630,714
--------------------
NET ASSETS--100.0% $ 46,052,524
====================
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $259,195 and gross
depreciation of $1,231,281 for federal income tax purposes. At October 31,
1999, the aggregate cost of securities for federal income tax purposes was
$46,393,896.
(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 October 31,
1999, these securities amounted to a value of $6,388,363 or 13.9% 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.
8 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR SHORT TERM BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $46,393,896) $ 45,421,810
Receivables
Investment securities sold 369,449
Interest and dividends 830,793
Fund shares sold 89,836
Receivable from adviser 67,122
Prepaid expenses 1,011
--------------
Total assets 46,780,021
--------------
LIABILITIES
Payables
Custodian 74,206
Investment securities purchased 352,980
Fund shares repurchased 67,121
Income distribution payable 53,676
Distribution fee 16,285
Transfer agent fee 13,911
Financial agent fee 8,699
Trustees' fee 5,641
Accrued expenses 134,978
--------------
Total liabilities 727,497
--------------
NET ASSETS $ 46,052,524
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 50,646,566
Undistributed net investment loss (4,395)
Accumulated net realized loss (3,616,548)
Net unrealized depreciation (973,099)
--------------
NET ASSETS $ 46,052,524
==============
CLASS A
Shares of beneficial interest outstanding, $0.01 par value,
unlimited authorization (Net Assets $26,071,039) 5,710,746
Net asset value per share $4.57
Offering price per share $4.57/(1-2.25%) $4.68
CLASS B
Shares of beneficial interest outstanding, $0.01 par value,
unlimited authorization (Net Assets $10,956,673) 2,405,345
Net asset value and offering price per share $4.56
CLASS C
Shares of beneficial interest outstanding, $0.01 par value,
unlimited authorization (Net Assets $9,024,812) 1,977,548
Net asset value and offering price per share $4.56
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 4,228,359
Dividends 13,050
--------------
Total investment income 4,241,409
--------------
EXPENSES
Investment advisory fee 283,982
Distribution fee, Class A 74,420
Distribution fee, Class B 88,111
Distribution fee, Class C 50,586
Financial agent fee 76,005
Transfer agent 85,732
Registration 39,466
Professional 36,089
Custodian 24,454
Printing 24,425
Trustees 17,008
Miscellaneous 47,003
--------------
Total expenses 847,281
Less expenses borne by investment adviser (245,212)
Custodian fees paid indirectly (1,361)
--------------
Net expenses 600,708
--------------
NET INVESTMENT INCOME 3,640,701
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (1,221,900)
Net realized loss on foreign currency transactions (33,555)
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions (1,013)
Net change in unrealized appreciation (depreciation) on
investments 405,264
--------------
NET LOSS ON INVESTMENTS (851,204)
--------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 2,789,497
==============
</TABLE>
See Notes to Financial Statements 9
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR SHORT TERM BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/99 10/31/98
----------- -----------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 3,640,701 $ 3,323,904
Net realized gain (loss) (1,255,455) (2,207,274)
Net change in unrealized appreciation
(depreciation) 404,251 (1,377,771)
----------- -----------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 2,789,497 (261,141)
----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (2,209,345) (2,076,744)
Net investment income, Class B (807,843) (750,987)
Net investment income, Class C (720,412) (439,980)
In excess of net investment income,
Class A (9,014) --
In excess of net investment income,
Class B (3,296) --
In excess of net investment income,
Class C (2,939) --
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 (3,752,849) (4,163,176)
----------- -----------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(3,582,772 and 6,014,412 shares,
respectively) 16,755,923 29,551,389
Net asset value of shares issued from
reinvestment of distributions
(377,128 and 481,339 shares,
respectively) 1,757,357 2,357,562
Cost of shares repurchased (5,376,778
and 5,014,505 shares, respectively) (25,115,199) (24,593,058)
----------- -----------
Total (6,601,919) 7,315,893
----------- -----------
CLASS B
Proceeds from sales of shares (757,791
and 1,098,057 shares, respectively) 3,535,661 5,370,293
Net asset value of shares issued from
reinvestment of distributions
(126,951 and 150,247 shares,
respectively) 589,906 735,674
Cost of shares repurchased (1,109,023
and 656,994 shares, respectively) (5,162,766) (3,148,967)
----------- -----------
Total (1,037,199) 2,957,000
----------- -----------
CLASS C
Proceeds from sales of shares
(1,484,770 and 3,178,002 shares,
respectively) 6,906,958 15,654,043
Net asset value of shares issued from
reinvestment of distributions
(124,900 and 90,036 shares,
respectively) 581,636 436,654
Cost of shares repurchased (1,922,094
and 1,091,595 shares, respectively) (8,935,139) (5,287,237)
----------- -----------
Total (1,446,545) 10,803,460
----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (9,085,663) 21,076,353
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS (10,049,015) 16,652,036
NET ASSETS
Beginning of period 56,101,539 39,449,503
----------- -----------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($4,395) AND $96,898, RESPECTIVELY] $46,052,524 $56,101,539
=========== ===========
</TABLE>
10 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR SHORT TERM BOND FUND
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------
YEAR ENDED OCTOBER 31
---------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 4.66 $ 5.06 $ 4.91 $ 4.74 $ 4.61
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.33(2) 0.34(2) 0.34(2) 0.33(2) 0.33(2)
Net realized and unrealized gain
(loss) (0.08) (0.29) 0.14 0.17 0.13
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.25 0.05 0.48 0.50 0.46
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.34) (0.34) (0.33) (0.33) (0.33)
Dividends from net realized gains -- (0.11) -- -- --
In excess of net investment income 0.00(4) -- -- -- --
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (0.34) (0.45) (0.33) (0.33) (0.33)
--------- --------- --------- --------- ---------
CHANGE IN NET ASSET VALUE (0.09) (0.40) 0.15 0.17 0.13
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 4.57 $ 4.66 $ 5.06 $ 4.91 $ 4.74
========= ========= ========= ========= =========
Total return(1) 5.57% 0.85% 10.08% 10.91% 10.27%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $26,071 $33,212 $28,557 $13,702 $9,303
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.00%(3) 1.00% 1.00% 1.00% 1.00%
Net investment income 7.21% 6.90% 6.54% 6.88% 7.07%
Portfolio turnover 122% 126% 246% 232% 344%
</TABLE>
(1) Maximum sales charges are not reflected in the total return calculation.
(2) Includes reimbursement of operating expenses by investment adviser of
$0.02, $0.03, $0.04, $0.06 and $0.08, respectively.
(3) For the year ended October 31, 1999, the ratio of operating expenses to
average net assets excludes the effect of expense offsets for custodian
fees; if expense offsets were included, the ratio would not significantly
differ.
(4) Amount is less than $0.01.
See Notes to Financial Statements
11
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR SHORT TERM BOND FUND
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------------------------
YEAR ENDED OCTOBER 31
---------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 4.65 $ 5.06 $ 4.91 $ 4.74 $ 4.61
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.31(2) 0.31(2) 0.31(2) 0.31(2) 0.30(2)
Net realized and unrealized gain
(loss) (0.08) (0.29) 0.15 0.17 0.13
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.23 0.02 0.46 0.48 0.43
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.32) (0.32) (0.31) (0.31) (0.30)
Dividends from net realized gains -- (0.11) -- -- --
In excess of net investment income 0.00(7) -- -- -- --
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (0.32) (0.43) (0.31) (0.31) (0.30)
--------- --------- --------- --------- ---------
CHANGE IN NET ASSET VALUE (0.09) (0.41) 0.15 0.17 0.13
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 4.56 $ 4.65 $ 5.06 $ 4.91 $ 4.74
========= ========= ========= ========= =========
Total return(1) 5.04% 0.12% 9.51% 10.36% 9.71%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $10,957 $12,225 $10,318 $5,943 $4,659
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.50%(6) 1.50% 1.50% 1.50% 1.50%
Net investment income 6.70% 6.44% 6.05% 6.38% 6.59%
Portfolio turnover 122% 126% 246% 232% 344%
</TABLE>
<TABLE>
<CAPTION>
CLASS C
----------------------------------------
FROM
YEAR ENDED OCTOBER 31 INCEPTION
------------------------ 10/1/97 TO
1999 1998 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) 0.33(3) 0.34(3) 0.03(3)
Net realized and unrealized gain
(loss) (0.10) (0.30) (0.09)
--------- --------- --------
TOTAL FROM INVESTMENT OPERATIONS 0.23 0.04 (0.06)
--------- --------- --------
LESS DISTRIBUTIONS
Dividends from net investment income (0.33) (0.33) (0.03)
Dividends from net realized gains -- (0.11) --
In excess of net investment income 0.00(7) -- --
--------- --------- --------
TOTAL DISTRIBUTIONS (0.33) (0.44) (0.03)
--------- --------- --------
CHANGE IN NET ASSET VALUE (0.10) (0.40) (0.09)
--------- --------- --------
NET ASSET VALUE, END OF PERIOD $ 4.56 $ 4.66 $ 5.06
========= ========= ========
Total return(1) 5.07% 0.59% (1.30)%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $9,025 $10,665 $575
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.25%(6) 1.25% 1.25 %(4)
Net investment income 6.95% 6.70% 5.51 %(4)
Portfolio turnover 122% 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
$0.02, $0.03, $0.04, $0.06 and $0.08, respectively.
(3) Includes reimbursement of operating expenses by investment adviser of
$0.02, $0.03 and $0.04, respectively.
(4) Annualized
(5) Not annualized
(6) For the year ended October 31, 1999, the ratio of operating expenses to
average net assets excludes the effect of expense offsets for custodian
fees; if expense offsets were included, the ratio would not significantly
differ.
(7) Amount is less than $0.01.
12
See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR SHORT TERM BOND FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1999
1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix-Goodwin 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.
13
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR SHORT TERM BOND FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1999 (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 year ended October 31, 1999, the Adviser has reimbursed
the Fund $245,212 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 $3,113 for Class A shares and deferred sales
charges of $33,795 for Class B shares for the year ended October 31, 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 year ended
October 31, 1999, $84,933 was retained by the Distributor, $110,057 was paid to
unaffiliated participants, and $18,127 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 year ended October 31, 1999, transfer agent fees
were $85,732 of which PEPCO retained $6,504 which is net of the fees paid to
State Street.
At October 31, 1999, PHL and affiliates held 33,059 Class A shares with a
value of $151,080.
3. PURCHASE AND SALE OF SECURITIES
During the year ended October 31, 1999, purchases and sales of investments,
excluding short-term securities and U.S. Government and agency securities,
amounted to $51,127,928 and $57,240,898, respectively. Purchases and sales of
long-term U.S. Government and agency securities amounted to $10,400,545 and
$11,439,480, 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 CARRYOVERS
The Fund has capital loss carryover of $3,616,548 comprised of $2,039,934 and
$1,576,614 expiring in 2006 and 2007, respectively, which may be used to offset
future capital gains.
6. RECLASSIFICATION OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, the Fund has recorded
reclassifications in the capital accounts. These reclassifications have no
impact on the net asset value of the Fund and are designed generally to present
undistributed income and realized gains on a tax basis which is considered to be
more informative to the shareholder. As of October 31, 1999, the Fund increased
undistributed net investment income by $10,855, and increased accumulated net
realized loss by $10,855.
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.
14
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[LOGO]
To the Trustees and Shareholders of
Phoenix-Goodwin Multi-Sector Short Term Bond Fund
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments (except for bond ratings), and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
the Phoenix-Goodwin Multi-Sector Short Term Bond Fund (formerly known as Phoenix
Multi-Sector Short Term Bond Fund) (the "Fund") at October 31, 1999, and the
results of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended and the financial highlights
for each of the periods indicated, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 1999 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 16, 1999
15
<PAGE>
PHOENIX-GOODWIN 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
William R. Moyer, Executive Vice President
John F. Sharry, Executive Vice President
James D. Wehr, Senior Vice President
David L. Albrycht, Vice President
Michael Kearney, 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
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
160 Federal Street
Boston, Massachusetts 02110
HOW TO CONTACT US
The Fund Connection 1-800-243-1574
Customer Service 1-800-243-1574 (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
Enfield CT 06083-2200
PRSRT STD
U.S. Postage
PAID
Andrews
Associates
[LOGO]PHOENIX
INVESTMENT PARTNERS
PXP 681 (12/99)
