<PAGE>
PHOENIX INVESTMENT PARTNERS
-------------------------------
ANNUAL REPORT
-----------------
OCTOBER 31, 2000
--------------------------
GOODWIN
PHOENIX
MULTI-SERIES TRUST
[LOGO]PHOENIX
INVESTMENT PARTNERS
<PAGE>
PHOENIX INVESTMENT PARTNERS
-------------------------------
ANNUAL REPORT
-----------------
OCTOBER 31, 2000
--------------------------
GOODWIN
PHOENIX-GOODWIN
MULTI-SECTOR SHORT
TERM BOND FUND
[LOGO]PHOENIX
INVESTMENT PARTNERS
<PAGE>
MESSAGE FROM THE PRESIDENT
[PHOTO]
DEAR SHAREHOLDER:
We are pleased to provide this annual report for the 12 months ended October
31, 2000. On the following pages, your Fund's portfolio manager reviews market
events over the past year and discusses his current investment strategy and
outlook. We hope you find his comments informative. If you have any questions,
please call your financial advisor or contact us at 1-800-243-1574 or
www.phoenixinvestments.com.
"Past performance is no guarantee of future results." Every investor is
familiar with this reminder that no one can predict accurately what your future
investment return will be based on past performance results. As we've seen this
year, financial markets can be
quite changeable, revolving around investor perceptions as much as hard facts.
Because of the market's ever-changing nature, many high-performing mutual funds
may not repeat their gains from one year to the next.
Establishing a long-term investment plan with the help of a trusted advisor is
a crucial step in achieving your personal financial goals. Another critical
ingredient to investor success is developing realistic expectations about your
investments and about market performance.
Our role is to help you build and preserve your capital over time. Your role
is to adopt an investing discipline and maintain a long-term market perspective.
Rely on your financial advisor to provide the insight and wisdom to keep you on
track.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
OCTOBER 31, 2000
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's investment objective is
total return. The Fund is appropriate for investors seeking high current income
from a broadly diversified short-term bond fund. The Fund's duration is market
neutral, approximately equal to the Fund's benchmark index. 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, 2000, Class A shares returned 5.67%,
Class B shares earned 4.95% and Class C shares rose 5.41%, in line with the
5.87% return for the Fund's benchmark index, the Merrill Lynch 1-2.99 Year
Medium Quality Corporate Index(1). All performance figures assume reinvestment
of distributions and exclude the effect of sales charges.
Q: WHAT WERE THE BEST PERFORMING AS WELL AS LEAST REWARDING MARKET SECTORS
DURING THIS REPORTING PERIOD?
A: As they have over the past 12 months, Treasuries are outperforming all other
sectors of the market as investors continue to reward the characteristics of
liquidity and quality. Weakness in the Nasdaq Index(2) during the second part of
the reporting period put the domestic high-yield sector under extra pressure.
The ongoing need for capital was a concern as access to capital declined with
the weaker equity markets.
Q: HOW WOULD YOU DESCRIBE YOUR CURRENT STRATEGY?
A: The domestic high-yield market has been jolted by rising rates, increasing
default rates and mixed fundamentals. Historically, valuations are very
favorable, just waiting for a market catalyst. We believe issue selection
remains critical, and our strategy is to continue to overweight higher quality
names and remain well-diversified by industry.
We continue to overweight commercial mortgage-backed securities versus
investment-grade corporates because of their strong excess return potential, in
our opinion. Technical factors are strong, with issue supply down compared with
last year. In addition, fundamentals remain strong in the real estate
industry -- delinquencies are low, property values are rising, rental rates are
improving and occupancy rates appear stable. Our holdings also include high
quality residential mortgage-backed securities and taxable municipal issues.
We continue to follow our investment strategy of investing in those 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
(1) THE MERRILL LYNCH 1-2.99 YEAR MEDIUM QUALITY 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.
(2)THE NASDAQ INDEX MEASURES TECHNOLOGY-ORIENTED STOCK MARKET TOTAL-RETURN
PERFORMANCE.
THE INDICES ARE UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT.
2
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR SHORT TERM BOND FUND (CONTINUED)
to significant upside potential. As we move forward, we believe the portfolio is
well-positioned to take advantage of attractive valuations in the non-Treasury
sectors of the market.
Q: WHAT IS YOUR CURRENT MARKET OUTLOOK?
A: We view the environment as favorable for fixed-income investors with a
long-term investment horizon. Our positive long-term outlook for fixed-income as
an asset class, particularly in the non-Treasury sectors, is driven by a
combination of attractive valuations and improving fundamentals. On the
fundamental side, the bond market should continue to benefit from a slowing
domestic economy, less restrictive Federal Reserve policy and moderating core
inflation.
While we are bullish on bonds over the long term, our near-term outlook is
cautious, given the potential volatility associated with such variables as the
election and the euro.
OCTOBER 31, 2000
3
<PAGE>
Phoenix-Goodwin Multi-Sector Short Term Bond Fund
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 10/31/00
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR 5 YEARS TO 10/31/00 DATE
------ ------- ----------- ---------
<S> <C> <C> <C> <C>
Class A Shares at NAV(2) 5.67% 6.56% 6.25% 7/6/92
Class A Shares at POP(3) 3.29 6.07 5.96 7/6/92
Class B Shares at NAV(2) 4.95 5.94 5.66 7/6/92
Class B Shares with CDSC(4) 3.48 5.94 5.66 7/6/92
Class C Shares at NAV(2) 5.41 -- 3.13 10/1/97
Merrill Lynch Medium Quality
Corporate Short-Term Bond
Index(7) 5.86 6.24 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 6.33% 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 shares 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
MULTI-SECTOR MULTI-SECTOR MEDIUM QUALITY
SHORT TERM BOND FUND SHORT TERM BOND FUND CORPORATE SHORT TERM
CLASS A(6) CLASS B(6) BOND INDEX(7)
<S> <C> <C> <C>
7/92 $9,775 $10,000 $10,000
92 $9,814 $10,007 $10,281
93 $10,647 $10,810 $11,049
94 $10,689 $10,806 $11,263
95 $11,788 $11,855 $12,332
96 $13,075 $13,084 $13,159
97 $14,393 $14,329 $14,110
98 $14,516 $14,347 $15,118
99 $15,324 $15,070 $15,762
00 $16,192 $15,816 $16,687
</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 10/31/00
As a percentage of bond holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Corporate 23%
Non-Agency Mortgage-Backed 18
Foreign Corporate 15
Municipal 13
Foreign Government 11
Asset-Backed 11
U.S. Government 9
</TABLE>
4
<PAGE>
Phoenix-Goodwin Multi-Sector Short Term Bond Fund
TEN LARGEST FIXED INCOME HOLDINGS AT OCTOBER 31, 2000 (AS A PERCENTAGE OF TOTAL
NET ASSETS)
<TABLE>
<C> <S> <C>
1. U.S. Government Securities 8.8%
U.S. TREASURY NOTES
2. Countrywide Asset-Backed Certificates 2.8%
ASSET-BACKED SECURITY
3. Texas Water Resources Finance Authority 2.5%
MUNICIPAL BOND
4. TPSA Finance BV 2.5%
FOREIGN CORPORATE BOND
5. Republic of Argentina 2.4%
FOREIGN GOVERNMENT SECURITY
6. Mississippi State 2.2%
MUNICIPAL BOND
7. Triangle Funding Ltd. 2.0%
ASSET-BACKED SECURITY
8. Adelphia Communications Corp. 2.0%
CORPORATE BOND
9. SUPERVALU, Inc. 2.0%
CORPORATE BOND
10. Imperial CMB Trust 2.0%
NON-AGENCY MORTGAGE-BACKED SECURITY
</TABLE>
INVESTMENTS AT OCTOBER 31, 2000
<TABLE>
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------ -----------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--8.8%
U.S. TREASURY NOTES--8.8%
U.S. Treasury Notes 6.75%, 5/15/05...... Aaa $3,300 $ 3,421,169
---------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES
(IDENTIFIED COST $3,426,281) 3,421,169
---------------------------------------------------------------------------
MUNICIPAL BONDS--13.6%
CALIFORNIA--1.0%
San Diego County Pension Obligation
Revenue Taxable Series A 6.24%,
8/15/02................................. Aaa 400 397,484
FLORIDA--1.3%
Tampa Solid Waste System Revenue Taxable
Series A 6.18%, 10/1/04................. Aaa 500 489,490
ILLINOIS--1.9%
Chicago Tax Increment Taxable 6.25%,
6/1/02.................................. Aaa 750 745,958
MASSACHUSETTS--1.0%
Massachusetts Port Authority Revenue
Taxable Series C 6.05%, 7/1/02.......... Aa 400 396,112
MISSISSIPPI--2.2%
Mississippi State Taxable Series T
7.50%, 11/1/00.......................... Aa 855 855,000
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------ -----------
<S> <C> <C> <C>
NEW JERSEY--1.9%
New Jersey State Taxable Series G
6.375%, 8/1/03.......................... Aa $ 750 $ 743,145
PENNSYLVANIA--1.8%
Delaware River Port Authority PA & NJ
Revenue Taxable Series A 5.91%,
1/1/02.................................. Aaa 700 694,561
TEXAS--2.5%
Texas Water Resources Finance Authority
Revenue Taxable 6%, 8/15/02............. Aaa 1,000 989,740
---------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $5,363,274) 5,311,490
---------------------------------------------------------------------------
ASSET-BACKED SECURITIES--11.2%
Advanta Equipment Receivables 98-1, A4
5.98%, 12/15/06......................... Aaa 500 494,219
Advanta Mortgage Loan Trust 00-2, A3
7.76%, 5/25/18.......................... Aaa 750 757,266
Capita Equipment Receivables Trust 97-1,
B 6.45%, 8/15/02........................ Aa 375 372,656
Countrywide Asset-Backed Certificates
99-3, AF5 7.73%, 9/25/27................ Aaa 1,100 1,098,443
</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>
Fleetwood Credit Corp. Grantor Trust
96-A, B 6.95%, 10/17/11................. A $ 114 $ 113,765
MBNA Master Credit Card Trust 98-C, C
6.35%, 11/15/05......................... BBB(c) 525 513,023
Premier Auto Trust 97-3, B 6.52%,
1/6/03.................................. A 250 249,052
Triangle Funding Ltd. 98-2A, 3 8.58%,
10/15/04(d)............................. BBB(c) 800 797,269
---------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $4,400,321) 4,395,693
---------------------------------------------------------------------------
CORPORATE BONDS--23.7%
AIRLINES--0.3%
Continental Airlines, Inc. Series 97-2D
7.522%, 6/30/01......................... Ba 111 109,518
BANKS (MONEY CENTER)--0.6%
First Union Institutional Capital I
8.04%, 12/1/26.......................... A 250 223,913
BROADCASTING (TELEVISION, RADIO & CABLE)--2.0%
Adelphia Communications Corp. 9.75%,
2/15/02................................. B 800 794,000
BUILDING MATERIALS--1.3%
Nortek, Inc. 9.875%, 3/1/04............. B 550 497,750
COMMUNICATIONS EQUIPMENT--0.8%
Crown Castle International Corp. 0%,
5/15/11(d).............................. B 475 305,187
DISTRIBUTORS (FOOD & HEALTH)--1.2%
Bergen Brunswig Corp. 7.375%, 1/15/03... Ba 500 469,330
FOODS--2.0%
SUPERVALU, Inc. 9.75%, 6/15/04.......... Baa 750 789,375
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--4.0%
Horseshoe Gaming LLC Series B 9.375%,
6/15/07................................. B 300 301,875
MGM Mirage, Inc. 9.75%, 6/1/07.......... Ba 500 512,500
Mandalay Resort Group 144A 9.50%,
8/1/08(b)............................... Ba 400 408,000
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------ -----------
<S> <C> <C> <C>
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--CONTINUED
Station Casinos, Inc. 10.125%,
3/15/06................................. B $ 349 $ 352,490
-----------
1,574,865
-----------
HEALTH CARE (HOSPITAL MANAGEMENT)--2.2%
HCA - The Healthcare Co. 8.75%,
9/1/10.................................. Ba 350 353,723
Tenet Healthcare Corp. 7.875%,
1/15/03................................. Ba 500 492,500
-----------
846,223
-----------
OIL & GAS (DRILLING & EQUIPMENT)--1.2%
R & B Falcon Corp. Series B 6.50%,
4/15/03................................. Ba 500 477,500
OIL & GAS (EXPLORATION & PRODUCTION)--1.3%
Triton Energy Ltd. 8.75%, 4/15/02....... Ba 500 519,375
PAPER & FOREST PRODUCTS--1.2%
Buckeye Technologies, Inc. 8.50%,
12/15/05................................ BB-(c) 500 487,500
POWER PRODUCERS (INDEPENDENT)--1.3%
Calpine Corp. 8.625%, 8/15/10........... Ba 500 494,597
RETAIL (SPECIALTY)--1.4%
Musicland Group, Inc. 9%, 6/15/03....... B 600 546,000
SERVICES (COMMERCIAL & CONSUMER)--0.8%
Anthony Crane Rentals LP Series B
10.375%, 8/1/08......................... Caa 350 148,750
Service Corporation International 7.20%,
6/1/06.................................. B 300 166,500
-----------
315,250
-----------
TELECOMMUNICATIONS (LONG DISTANCE)--0.9%
Level 3 Communication, Inc. 10.75%,
3/15/08................................. B 500 360,249
WASTE MANAGEMENT--1.2%
Allied Waste Industries, Inc. 6.10%,
1/15/03................................. Ba 500 452,213
---------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $9,776,008) 9,262,845
---------------------------------------------------------------------------
</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>
NON-AGENCY MORTGAGE-BACKED
SECURITIES--19.1%
Bear Stearns Mortgage Securities, Inc.
95-1, 2B3 7.40%, 7/25/10................ BB(c) $ 367 $ 352,865
Bear Stearns Mortgage Securities, Inc.
95-1, 1B3 6.457%, 5/25/10(d)............ BB(c) 477 444,401
CS First Boston Mortgage Securities
Corp. 97-SPCE, C 7.077%, 2/20/07........ AA(c) 750 738,985
CS First Boston Mortgage Securities
Corp. 97-C2, A3 6.55%, 11/17/07......... Aaa 250 242,934
CS First Boston Mortgage Securities
Corp. 98-C2, A1 5.96%, 12/15/07......... Aaa 213 205,410
Criimi Mae Trust I 96-C1, A2 7.56%,
6/30/33................................. BBB(c) 398 386,196
DLJ Commercial Mortgage Corp. 98-CF2,
A1A 5.88% 11/12/31...................... Aaa 479 461,408
G.E. Capital Mortgage Services, Inc.
94-26, B2 6.906%, 7/25/09(d)............ Baa 197 190,194
G.E. Capital Mortgage Services, Inc.
96-8, 1M 7.25%, 5/25/26................. AAA(c) 284 277,101
IMPAC CMB Trust 98-2, M3 7.25%,
4/25/28................................. A(c) 453 444,576
Imperial CMB Trust 98-1, M2 7.25%,
11/25/29................................ A 774 762,528
Prudential Securities Secured Financing
Corp. 98-C1, A1A1 6.105%, 11/15/02...... Aaa 411 406,749
Residential Funding Mortgage Securities
I 93-S23, M3 6.50%, 6/25/08............. Aaa 553 533,620
Residential Funding Mortgage Securities
I 93-S29, M3 7%, 8/25/08................ AA+(c) 417 406,835
Residential Funding Mortgage Securities
I 96-S8, A4 6.75%, 3/25/11.............. AAA(c) 78 75,674
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------ -----------
<S> <C> <C> <C>
Resolution Trust Corp. 94-C1, C 8%,
6/25/26................................. A(c) $ 54 $ 54,048
Structured Asset Securities Corp. 00-C2,
L 8.37%, 3/20/03(d)..................... BB+(c) 481 467,022
Structured Asset Securities Corp.
98-C3A, H 7.172%, 4/25/03(d)............ Baa 500 494,838
Summit Mortgage Trust 00-1, B3 6.138%,
12/28/12(d)............................. A-(c) 540 516,449
---------------------------------------------------------------------------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $7,461,802) 7,461,833
---------------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--11.8%
ARGENTINA--2.4%
Republic of Argentina Series B 0%,
4/15/01................................. BBB(c) 1,000 958,750
BRAZIL--2.8%
Republic of Brazil 11.625%, 4/15/04..... B 500 507,875
Republic of Brazil Series El-L 7.625%,
4/15/06(d).............................. B 440 402,738
Republic of Brazil DCB-L Series 18 Yr
7.688%, 4/15/12(d)...................... B 250 186,406
-----------
1,097,019
-----------
BULGARIA--1.1%
Republic of Bulgaria IAB PDI Euro 7.75%,
7/28/11(d).............................. B 250 187,500
Republic of Bulgaria FLIRB Series A
Bearer 3%, 7/28/12(d)................... B 335 241,200
-----------
428,700
-----------
CROATIA--1.8%
Croatia Series B 7.75%, 7/31/06(d)...... Baa 472 449,633
Croatia Series A 7.75%, 7/31/10(d)...... Baa 273 252,272
-----------
701,905
-----------
MEXICO--1.3%
United Mexican States Global Bond
10.375%, 2/17/09........................ Baa 500 532,500
</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>
PANAMA--1.3%
Republic of Panama RegS 7.875%,
2/13/02................................. Ba $ 500 $ 493,750
PHILIPPINES--0.5%
Republic of Philippines 8.875%,
4/15/08................................. Ba 225 187,313
POLAND--0.6%
Poland Bearer PDI 6%, 10/27/14(d)....... Baa 250 231,406
---------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(IDENTIFIED COST $4,645,300) 4,631,343
---------------------------------------------------------------------------
FOREIGN CORPORATE BONDS--15.2%
MEXICO--8.6%
Banco Nacional de Mexico SA US$
Remittance Master Trust 144A
7.57%, 12/31/00(b)...................... A-(c) 67 66,704
Cemex SA de CV 144A 8.625%,
7/18/03(b).............................. Ba 500 500,000
Grupo Elektra SA de CV 12.75%,
5/15/01................................. B(c) 500 513,750
Grupo Industrial Durango 12.625%,
8/1/03.................................. B 500 505,000
Grupo Iusacell SA de CV 14.25%,
12/1/06................................. B 400 404,000
Grupo Televisa SA 144A 8.625%,
8/8/05(b)............................... Baa 500 487,500
Nacional Financiera SNC 144A 22%,
5/20/02(b)(e)........................... Baa 5,000 546,488
Vicap SA 10.25%, 5/15/02................ Ba 350 334,250
-----------
3,357,692
-----------
NETHERLANDS--2.3%
Deutsche Telekom International Finance
7.75%, 6/15/05(d)....................... Aa 500 508,509
Netia Holdings BV 13.75%, 6/15/10....... B 230 171,563
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------ -----------
<S> <C> <C> <C>
NETHERLANDS--CONTINUED
Telefonica Europe BV 7.35%, 9/15/05..... A $ 200 $ 200,600
-----------
880,672
-----------
POLAND--2.5%
TPSA Finance BV 144A 7.125%,
12/10/03(b)............................. Baa 1,000 980,000
TURKEY--0.6%
Garanti Grantor Trust 97-A 144A 8.734%,
4/15/02(b)(d)........................... BBB-(c) 236 229,094
VENEZUELA--1.2%
PDVSA Finance Ltd. Series 98-1 6.45%,
2/15/04................................. Baa 500 474,600
---------------------------------------------------------------------------
TOTAL FOREIGN CORPORATE BONDS
(IDENTIFIED COST $5,995,463) 5,922,058
---------------------------------------------------------------------------
<CAPTION>
SHARES
------
PREFERRED STOCKS--0.6%
<S> <C> <C> <C>
TELECOMMUNICATIONS (LONG DISTANCE)--0.6%
Global Crossing Holdings Ltd. PIK
10.50%.................................. 2,500 240,000
---------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $248,125) 240,000
---------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--104.0%
(IDENTIFIED COST $41,316,574) 40,646,431
---------------------------------------------------------------------------
<CAPTION>
MOODY'S PAR
RATING VALUE
(Unaudited) (000)
------------ ------
SHORT-TERM OBLIGATIONS--6.1%
<S> <C> <C> <C>
COMMERCIAL PAPER--6.1%
Koch Industries, Inc. 6.62%, 11/1/00.... A-1+ $ 995 995,000
</TABLE>
8 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>
COMMERCIAL PAPER--CONTINUED
Ford Motor Credit Co. 6.58%, 11/2/00.... A-1 $1,395 $ 1,394,745
---------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $2,389,745) 2,389,745
---------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--110.1%
(IDENTIFIED COST $43,706,319) 43,036,176(a)
Cash and receivables, less liabilities--(10.1%) (3,953,145)
-----------
NET ASSETS--100.0% $39,083,031
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $247,810 and gross
depreciation of $917,953 for federal income tax purposes. At October 31,
2000, the aggregate cost of securities for federal income tax purposes was
$43,706,319.
(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,
2000 these securities amounted to a value of $3,217,786 or 8.2% 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 Mexican Pesos.
See Notes to Financial Statements 9
<PAGE>
Phoenix-Goodwin Multi-Sector Short Term Bond Fund
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $43,706,319) $ 43,036,176
Cash 50,870
Receivables
Investment securities sold 1,867,310
Interest and dividends 702,877
Fund shares sold 104,764
Receivable from adviser 3,276
Prepaid expenses 400
--------------
Total assets 45,765,673
--------------
LIABILITIES
Payables
Investment securities purchased 4,601,575
Fund shares repurchased 1,915,235
Income distribution payable 49,218
Distribution fee 13,753
Trustees' fee 10,208
Transfer agent fee 17,605
Financial agent fee 5,555
Accrued expenses 69,493
--------------
Total liabilities 6,682,642
--------------
NET ASSETS $ 39,083,031
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 44,415,744
Undistributed net investment income 138,688
Accumulated net realized loss (4,800,485)
Net unrealized depreciation (670,916)
--------------
NET ASSETS $ 39,083,031
==============
CLASS A
Shares of beneficial interest outstanding, $0.01 par value,
unlimited authorization (Net Assets $22,636,727) 5,045,446
Net asset value per share $4.49
Offering price per share $4.49/(1-2.25%) $4.59
CLASS B
Shares of beneficial interest outstanding, $0.01 par value,
unlimited authorization (Net Assets $9,171,188) 2,050,200
Net asset value and offering price per share $4.47
CLASS C
Shares of beneficial interest outstanding, $0.01 par value,
unlimited authorization (Net Assets $7,275,116) 1,622,583
Net asset value and offering price per share $4.48
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 3,532,457
Dividends 26,250
--------------
Total investment income 3,558,707
--------------
EXPENSES
Investment advisory fee 225,686
Distribution fee, Class A 59,312
Distribution fee, Class B 73,712
Distribution fee, Class C 37,432
Financial agent fee 72,175
Transfer agent 78,393
Professional 32,081
Registration 30,839
Printing 24,464
Trustees 18,152
Custodian 16,160
Miscellaneous 14,385
--------------
Total expenses 682,791
Less expenses borne by investment adviser (204,580)
--------------
Net expenses 478,211
--------------
NET INVESTMENT INCOME 3,080,496
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (1,170,086)
Net realized loss on foreign currency transactions (15,718)
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions (533)
Net change in unrealized appreciation (depreciation) on
investments 302,716
--------------
NET LOSS ON INVESTMENTS (883,621)
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,196,875
==============
</TABLE>
10 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin Multi-Sector Short Term Bond Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/00 10/31/99
----------- ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 3,080,496 $ 3,640,701
Net realized gain (loss) (1,185,804) (1,255,455)
Net change in unrealized appreciation
(depreciation) 302,183 404,251
----------- ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 2,196,875 2,789,497
----------- ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (1,727,123) (2,209,345)
Net investment income, Class B (672,190) (807,843)
Net investment income, Class C (525,828) (720,412)
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)
----------- ------------
DECREASE IN NET ASSETS RESULTING FROM
DISTRIBUTIONS TO SHAREHOLDERS (2,925,141) (3,752,849)
----------- ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(2,835,706 and 3,582,772 shares,
respectively) 12,882,792 16,755,923
Net asset value of shares issued from
reinvestment of distributions
(285,810 and 377,128 shares,
respectively) 1,294,007 1,757,357
Cost of shares repurchased (3,786,816
and 5,376,778 shares, respectively) (17,187,679) (25,115,199)
----------- ------------
Total (3,010,880) (6,601,919)
----------- ------------
CLASS B
Proceeds from sales of shares (728,390
and 757,791 shares, respectively) 3,275,043 3,535,661
Net asset value of shares issued from
reinvestment of distributions
(109,153 and 126,951 shares,
respectively) 492,951 589,906
Cost of shares repurchased (1,192,688
and 1,109,023 shares, respectively) (5,383,383) (5,162,766)
----------- ------------
Total (1,615,389) (1,037,199)
----------- ------------
CLASS C
Proceeds from sales of shares (742,115
and 1,484,770 shares, respectively) 3,370,276 6,906,958
Net asset value of shares issued from
reinvestment of distributions
(80,802 and 124,900 shares,
respectively) 366,005 581,636
Cost of shares repurchased (1,177,882
and 1,922,094 shares, respectively) (5,351,239) (8,935,139)
----------- ------------
Total (1,614,958) (1,446,545)
----------- ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (6,241,227) (9,085,663)
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS (6,969,493) (10,049,015)
NET ASSETS
Beginning of period 46,052,524 56,101,539
----------- ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$138,688 AND ($4,395), RESPECTIVELY] $39,083,031 $ 46,052,524
=========== ============
</TABLE>
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 A
-----------------------------------------------------------------------
YEAR ENDED OCTOBER 31
-----------------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 4.57 $ 4.66 $ 5.06 $ 4.91 $ 4.74
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.35 0.33 0.34 0.34 0.33
Net realized and unrealized
gain (loss) (0.10) (0.08) (0.29) 0.14 0.17
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS 0.25 0.25 0.05 0.48 0.50
------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net
investment income (0.33) (0.34) (0.34) (0.33) (0.33)
Dividends from net realized
gains -- -- (0.11) -- --
In excess of net investment
income -- 0.00(4) -- -- --
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS (0.33) (0.34) (0.45) (0.33) (0.33)
------- ------- ------- ------- -------
Change in net asset value (0.08) (0.09) (0.40) 0.15 0.17
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 4.49 $ 4.57 $ 4.66 $ 5.06 $ 4.91
======= ======= ======= ======= =======
Total return(1) 5.67% 5.57% 0.85% 10.08% 10.91%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $22,637 $26,071 $33,212 $28,557 $13,702
RATIO TO AVERAGE NET ASSETS
OF:
Operating expenses(2) 1.00% 1.00%(3) 1.00% 1.00% 1.00%
Net investment income (loss) 7.67% 7.21% 6.90% 6.54% 6.88%
Portfolio turnover 116% 122% 126% 246% 232%
</TABLE>
(1) Maximum sales charges are not reflected in the total return calculation.
(2) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.50%,
1.48%, 1.55%, 1.86%, and 2.19% for the periods ended October 31, 2000,
1999, 1998, 1997 and 1996, 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
12 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 B
---------------------------------------------------------------------
YEAR ENDED OCTOBER 31
---------------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 4.56 $ 4.65 $ 5.06 $ 4.91 $ 4.74
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.32 0.31 0.31 0.31 0.31
Net realized and unrealized
gain (loss) (0.10) (0.08) (0.29) 0.15 0.17
------ ------- ------- ------- ------
TOTAL FROM INVESTMENT
OPERATIONS 0.22 0.23 0.02 0.46 0.48
------ ------- ------- ------- ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.31) (0.32) (0.32) (0.31) (0.31)
Dividends from net realized
gains -- -- (0.11) -- --
In excess of net investment
income -- 0.00(7) -- -- --
------ ------- ------- ------- ------
TOTAL DISTRIBUTIONS (0.31) (0.32) (0.43) (0.31) (0.31)
------ ------- ------- ------- ------
Change in net asset value (0.09) (0.09) (0.41) 0.15 0.17
------ ------- ------- ------- ------
NET ASSET VALUE, END OF PERIOD $ 4.47 $ 4.56 $ 4.65 $ 5.06 $ 4.91
====== ======= ======= ======= ======
Total return(1) 4.95% 5.04% 0.12% 9.51% 10.36%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $9,171 $10,957 $12,225 $10,318 $5,943
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(2) 1.50 1.50%(6) 1.50% 1.50% 1.50%
Net investment income 7.18% 6.70% 6.44% 6.05% 6.38%
Portfolio turnover 116% 122% 126% 246% 232%
</TABLE>
<TABLE>
<CAPTION>
CLASS C
------------------------------------------------------------------
YEAR ENDED OCTOBER 31 FROM
------------------------------------- INCEPTION 10/1/97 TO
2000 1999 1998 10/31/97
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 4.56 $ 4.66 $ 5.06 $ 5.15
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (loss) 0.34 0.33 0.34 0.03
Net realized and unrealized
gain (loss) (0.10) (0.10) (0.30) (0.09)
------ ------ ------- ------
TOTAL FROM INVESTMENT
OPERATIONS 0.24 0.23 0.04 (0.06)
------ ------ ------- ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.32) (0.33) (0.33) (0.03)
Dividends from net realized
gains -- -- (0.11) --
In excess of net investment
income -- 0.00(7) -- --
------ ------ ------- ------
TOTAL DISTRIBUTIONS (0.32) (0.33) (0.44) (0.03)
------ ------ ------- ------
Change in net asset value (0.08) (0.10) (0.40) (0.09)
------ ------ ------- ------
NET ASSET VALUE, END OF PERIOD $ 4.48 $ 4.56 $ 4.66 $ 5.06
====== ====== ======= ======
Total return(1) 5.41% 5.07% 0.59% (1.30)%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $7,275 $9,025 $10,665 $575
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(3) 1.25% 1.25%(6) 1.25% 1.25%(4)
Net investment income 7.41 6.95% 6.70% 5.51%(4)
Portfolio turnover 116% 122% 126% 246%(5)
</TABLE>
(1) Maximum sales charges are not reflected in the total return calculation.
(2) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 2.00%,
1.98%, 2.05%, 2.36%, and 2.69% for the periods ended October 31, 2000,
1999, 1998, 1997 and 1996, respectively.
(3) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.74%,
1.73%, 1.80% and 2.11% for the periods ended October 31, 2000, 1999, 1998
and 1997, 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.
See Notes to Financial Statements 13
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR SHORT TERM BOND FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000
1. SIGNIFICANT ACCOUNTING POLICIES
Effective October 12, 2000, Phoenix-Goodwin Multi-Sector Short Term Bond Fund
(the "Fund") is organized as a Delaware business trust, (prior to that date, the
Fund was 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 accounting principles
generally accepted in the United States 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. Equity securities are valued at the
last sale price, or if there had been no sale that day, at the last bid price.
All other securities and assets are valued at their fair value as determined in
good faith by or under the direction of the Trustees.
Certain securities held by the Fund were valued on the basis of a price
provided by a principal market maker. The prices provided by the principal
market makers may differ from the value that would be realized if the securities
were sold. At October 31, 2000, the total value of these securities represented
approximately 2% of net assets.
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 accounting principles generally accepted in
the United States. 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.
14
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR SHORT TERM BOND FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 (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, 2000, the Adviser has waived or
reimbursed the Fund $204,580 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 $2,387 for Class A shares and deferred sales
charges of $14,049 for Class B shares for the year ended October 31, 2000. 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, 2000, $73,726 was retained by the Distributor, $82,722 was paid to
unaffiliated participants, and $14,008 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. For the year ended October 31, 2000, financial agent fees were
$72,175 of which PEPCO received $38,860. 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
("State Street") as sub-transfer agent. For the year ended October 31, 2000,
transfer agent fees were $78,393 of which PEPCO retained $7,042 which is net of
the fees paid to State Street. At October 31, 2000, PHL and affiliates held
34,902 Class A shares with a value of $156,710.
3. PURCHASE AND SALE OF SECURITIES
During the year ended October 31, 2000, purchases and sales of investments,
excluding short-term securities and U.S. Government and agency securities,
amounted to $33,402,587 and $38,197,931, respectively. Purchases and sales of
long-term U.S. Government and agency securities amounted to $13,975,096 and
$11,222,968, 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.
High yield-high risk securities typically entail greater price volatility and
principal and interest rate risk. There is a greater chance that an issuer will
not be able to make principal and interest payments on time. Analysis of the
creditworthiness of issuers of high yield securities may be complex, and as a
result, it may be more difficult for the subadviser to accurately predict risk.
5. CAPITAL LOSS CARRYOVERS
The Fund has capital loss carryover of $4,800,485 comprised of $2,039,934 and
$1,576,614 and $1,183,937 expiring in 2006, 2007 and 2008, respectively, which
may be used to offset future capital gains.
6. RECLASSIFICATION OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, the Funds have 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, 2000, the Fund decreased
undistributed net investment income by $12,272, increased accumulated net
realized gain by $1,867 and increased capital paid in on shares of beneficial
interest by $10,405.
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.
15
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[PRICEWATERHOUSECOOPERS LOGO]
To the Board of 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, 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 Phoenix-Goodwin Multi-Sector Short
Term Bond Fund (the "Fund") at October 31, 2000, and the results of its
operations, the changes in its net assets and the financial highlights for the
periods indicated, in conformity with accounting principles generally accepted
in the United States of America. 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 auditing standards
generally accepted in the United States of America, 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, 2000 by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 15, 2000
16
<PAGE>
RESULTS OF SHAREHOLDER MEETING (UNAUDITED)
Special meetings of Shareholders of Phoenix-Goodwin Multi-Sector Short Term Bond
Fund were held on May 16, 2000 and October 12, 2000 to approve the following
matters:
1. Approve a new Rule 12b-1 Distribution Plan for Class B Shares
2. Approve a new Rule 12b-1 Distribution Plan for Class C Shares
3. Approve an Agreement and Plan of Reorganization which provides for the
reorganization of the Fund into a series of a new Delaware business trust.
4. Amend the fundamental investment restriction of the Fund regarding
diversification.
5. Amend the fundamental investment restriction of the Fund regarding
concentration.
6. Amend the fundamental investment restriction of the Fund regarding
borrowing.
7. Amend the fundamental investment restriction of the Fund regarding the
issuance of senior securities.
8. Amend the fundamental investment restriction of the Fund regarding
underwriting.
9. Amend the fundamental investment restriction of the Fund regarding
investing in real estate.
10. Amend the fundamental investment restriction of the Fund regarding
investing in commodities.
11. Amend the fundamental investment restriction of the Fund regarding
lending.
12. Eliminate the fundamental investment restriction of the Fund regarding
the purchase of securities on margin.
13. Eliminate the fundamental investment restriction of the Fund regarding
investing in oil, gas or other mineral programs.
14. Eliminate the fundamental investment restriction of the Fund regarding
short sales.
15. Eliminate the fundamental investment restriction of the Fund regarding
investing in and writing puts, calls straddles and spreads.
On the record date for these meetings, the shares outstanding and percentage of
the shares outstanding and entitled to vote that were present by proxy were as
follows:
<TABLE>
<CAPTION>
SHARES OUTSTANDING PERCENTAGE PRESENT BY PROXY
------------------ ---------------------------
<S> <C> <C>
Phoenix-Goodwin Multi-Sector Short Term
Bond Fund Class B 2,160,502 50.70%
Phoenix-Goodwin Multi-Sector Short Term
Bond Fund Class C 1,654,331 57.65%
Phoenix-Goodwin Multi Sector Short Term
Fund 8,868,758 64.77%
</TABLE>
17
<PAGE>
NUMBER OF VOTES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--------- --------- ---------
<S> <C> <C> <C> <C>
1. Approve a new Rule 12b-1 Distribution 909,790 55,691 129,836
Plan for Class B Shares
2. Approve a new Rule 12b-1 Distribution 908,421 11,626 33,648
Plan for Class C Shares
3. Approve an Agreement and Plan of 5,347,535 164,930 231,619
Reorganization which provides for the
reorganization of the Fund into a series
of a new Delaware business trust.
4. Amend the fundamental investment 5,295,410 205,282 243,393
restriction of the Fund regarding
diversification.
5. Amend the fundamental investment 5,270,647 220,142 253,295
restriction of the Fund regarding
concentration.
6. Amend the fundamental investment 5,243,828 245,807 254,449
restriction of the Fund regarding
borrowing.
7. Amend the fundamental investment 5,266,653 227,750 249,681
restriction of the Fund regarding the
issuance of senior securities.
8. Amend the fundamental investment 5,252,110 228,496 263,478
restriction of the Fund regarding
underwriting.
9. Amend the fundamental investment 5,232,853 262,098 249,133
restriction of the Fund regarding
investing in real estate.
10. Amend the fundamental investment 5,208,979 283,086 252,019
restriction of the Fund regarding
investing in commodities.
11. Amend the fundamental investment 5,251,857 238,356 253,872
restriction of the Fund regarding
lending.
12. Eliminate the fundamental investment 5,175,418 290,043 278,623
restriction of the Fund regarding the
purchase of securities on margin.
13. Eliminate the fundamental investment 5,203,109 298,977 241,998
restriction of the Fund regarding
investing in oil, gas or other mineral
programs.
14. Eliminate the fundamental investment 5,183,994 270,241 289,849
restriction of the Fund regarding short
sales.
15. Eliminate the fundamental investment 5,174,185 277,059 292,840
restriction of the Fund regarding
investing in and writing puts, calls
straddles and spreads.
</TABLE>
18
<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
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
Robert S. Driessen, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Nancy J. Engberg, Assistant Secretary
INVESTMENT ADVISER
Phoenix Investment Counsel, Inc.
56 Prospect Street
Hartford, CT 06115-0480
PRINCIPAL UNDERWRITER
Phoenix Equity Planning Corporation
56 Prospect Street
Hartford, CT 06115-0480
TRANSFER AGENT
Phoenix Equity Planning Corporation
56 Prospect Street
Hartford, CT 06115-0480
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
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
www.phoenixinvestments.com
<PAGE>
PHOENIX EQUITY PLANNING CORPORATION
PO Box 150480 ------------
Hartford CT 06115-0480 PRSRT STD
U.S. POSTAGE
PAID
[LOGO] PHOENIX ANDREW
INVESTMENT PARTNERS ASSOCIATES
------------
For more information about
Phoenix mutual funds, please call
your financial representative or
contact us at 1-800-243-4361 or
www.phoenixinvestments.com.
PXP 681 (12/00)
<PAGE>
Phoenix Investment Partners
ANNUAL REPORT
OCTOBER 31, 2000
Goodwin
Phoenix-Goodwin
Multi-Sector Fixed
Income Fund
[LOGO]PHOENIX
INVESTMENT PARTNERS
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
[PHOTO]
We are pleased to provide this annual report for the 12 months ended October
31, 2000. On the following pages, your Fund's portfolio manager reviews market
events over the past year and discusses his current investment strategy and
outlook. We hope you find his comments informative. If you have any questions,
please call your financial advisor or contact us at 1-800-243-1574 or
www.phoenixinvestments.com.
"Past performance is no guarantee of future results." Every investor is
familiar with this reminder that no one can predict accurately what your future
investment return will be based on past performance results. As we've seen this
year, financial markets can be quite changeable, revolving around investor
perceptions as much as hard facts. Because of the market's ever-changing nature,
many high-performing mutual funds may not repeat their gains from one year to
the next.
Establishing a long-term investment plan with the help of a trusted advisor is
a crucial step in achieving your personal financial goals. Another critical
ingredient to investor success is developing realistic expectations about your
investments and about market performance.
Our role is to help you build and preserve your capital over time. Your role
is to adopt an investing discipline and maintain a long-term market perspective.
Rely on your financial advisor to provide the insight and wisdom to keep you on
track.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
OCTOBER 31, 2000
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 FIXED INCOME 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 Fixed Income Fund's investment objective is
total return. The Fund is appropriate for investors with a moderate risk
tolerance who are seeking to maximize current income consistent with
preservation of capital by investing in a broadly diversified bond fund. The
Fund's duration is market neutral, approximately equal the Fund's benchmark
index. 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, 2000, Class A shares returned 4.49%,
Class B shares earned 3.66% and Class C shares were up 3.65% compared with a
return of 7.30% for the Lehman Brothers Aggregate Bond Index.(1) All performance
figures assume reinvestment of distributions and exclude the effect of sales
charges.
Q: WHAT WERE THE BEST PERFORMING AS WELL AS LEAST REWARDING SECTORS OF THE
MARKET DURING THE PAST REPORTING PERIOD?
A: As they have over the past 12 months, Treasuries are outperforming all other
sectors of the market as investors continue to reward the characteristics of
liquidity and quality. Weakness in the Nasdaq Index(2) during the second part of
the reporting period put the domestic high-yield sector under extra pressure.
The ongoing need for capital was a concern as access to capital declined with
the weaker equity markets.
Q: HOW WOULD YOU DESCRIBE YOUR CURRENT STRATEGY?
A: The domestic high-yield market has been jolted by rising rates, increasing
default rates and mixed fundamentals. Historically, valuations are very
favorable, just waiting for a market catalyst. We believe issue selection
remains critical, and our strategy is to continue to overweight higher quality
names and remain well-diversified by industry.
We continue to overweight commercial mortgage-backed securities versus
investment-grade corporates because of their strong excess return potential, in
our opinion. Technical factors are strong, with issue supply down compared with
last year. In addition, fundamentals remain strong in the real estate
industry -- delinquencies are low, property values are rising, rental rates are
improving and occupancy rates appear stable. Our holdings also include high
quality residential mortgage-backed securities and taxable municipal issues.
We continue to follow our investment strategy of investing in those 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. As we move forward, we
(1) THE LEHMAN BROTHERS AGGREGATE BOND INDEX MEASURES BROAD BOND MARKET
TOTAL-RETURN PERFORMANCE.
(2) THE NASDAQ INDEX MEASURES TECHNOLOGY-ORIENTED STOCK MARKET TOTAL-RETURN
PERFORMANCE.
THE INDICES ARE UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT.
2
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR FIXED INCOME FUND (CONTINUED)
believe the portfolio is well-positioned to take advantage of attractive
valuations in the non-Treasury sectors of the market.
Q: WHAT IS YOUR CURRENT MARKET OUTLOOK?
A: We view the environment as favorable for fixed-income investors with a
long-term investment horizon. Our positive long-term outlook for fixed-income as
an asset class, particularly in the non-Treasury sectors, is driven by a
combination of attractive valuations and improving fundamentals. On the
fundamental side, the bond market should continue to benefit from a slowing
domestic economy, less restrictive Federal Reserve policy and moderating core
inflation.
While we are bullish on bonds over the long term, our near-term outlook is
cautious, given the potential volatility associated with such variables as the
election and the euro.
OCTOBER 31, 2000
3
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 10/31/00
<TABLE>
<CAPTION>
5 10 INCEPTION INCEPTION
1 YEAR YEARS YEARS TO 10/31/00 DATE
------ ------- -------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Class A Shares at NAV(2) 4.49% 5.08% 9.06% -- --
Class A Shares at POP(3) (0.48) 4.06 8.53 -- --
Class B Shares at NAV(2) 3.66 4.28 -- 6.03 1/3/92
Class B Shares with CDSC(4) (0.18) 4.28 -- 6.03 1/3/92
Class C Shares at NAV(2) 3.65 -- -- (1.33) 10/14/97
Class C Shares with CDSC(4) 3.65 -- -- (1.33) 10/14/97
Lehman Brothers Aggregate Bond
Index(7) 7.30 6.33 7.98 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 4.75% 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 5% to 0% over a
five year period. CDSC charges for C shares are 1% in the first year and 0%
thereafter.
(5) Index performance is 6.81% for Class B (since 12/31/91) and 5.65% for
Class C (since 10/31/97), respectively.
(6) This chart illustrates POP returns on Class A shares since inception.
Returns on Class B and Class C shares will vary due to differing sales
charges.
(7) The Lehman Brothers Aggregate Bond Index is an unmanaged, commonly used
measure of broad bond market total return performance. 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 MULTI-SECTOR LEHMAN BROTHERS
FIXED INCOME FUND, INC. AGGREGATE
CLASS A(6) BOND INDEX(7)
<S> <C> <C>
10/31/1990 $9,525 $10,000
10/31/1991 $12,150 $11,581
10/31/1992 $13,865 $12,720
10/31/1993 $16,299 $14,230
10/31/1994 $15,553 $13,708
10/31/1995 $17,702 $15,853
10/31/1996 $20,136 $16,780
10/31/1997 $21,992 $18,272
10/31/1998 $20,484 $19,978
10/31/1999 $21,707 $20,084
10/31/2000 $22,681 $21,550
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
10/31/90 in Class A shares and reflects the maximum sales charge of 4.75% 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 10/31/00
As a percentage of bond holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Non-Agency Mortgage-Backed 27%
Corporate 24%
Foreign Government 21%
Foreign Corporate 16%
Municipal 9%
Foreign Convertible 1%
Asset-Backed 1%
Convertible 1%
</TABLE>
4
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund
TEN LARGEST FIXED INCOME HOLDINGS AT OCTOBER 31, 2000 (AS A PERCENTAGE OF TOTAL
NET ASSETS)
<TABLE>
<C> <S> <C>
1. Middletown Trust 3.6%
CORPORATE BOND
2. Federal Republic of Brazil C Bond 2.9%
FOREIGN GOVERNMENT SECURITY
3. United Mexican States Global Bond 11.50%, 5/15/26 2.7%
FOREIGN GOVERNMENT SECURITY
4. CS First Boston Mortgage Securities Corp. 97-1R, 1M4 2.3%
NON-AGENCY MORTGAGE-BACKED SECURITY
5. Structured Asset Securities Corp. 98-C3A, H 2.2%
NON-AGENCY MORTGAGE-BACKED SECURITY
6. CS First Boston Mortgage Securities Corp. 97-SPCE C 2.2%
NON-AGENCY MORTGAGE-BACKED SECURITY
7. Republic of Bulgaria 2.2%
FOREIGN GOVERNMENT SECURITY
8. First Chicago/Lennar Trust 1.9%
NON-AGENCY MORTGAGE-BACKED SECURITY
9. Norwest Asset Securities Corp. 96-3, B1 1.8%
NON-AGENCY MORTGAGE-BACKED SECURITY
10. Commercial Mortgage Asset Trust 1.8%
NON-AGENCY MORTGAGE-BACKED SECURITY
</TABLE>
INVESTMENTS AT OCTOBER 31, 2000
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
MUNICIPAL BONDS--8.2%
CALIFORNIA--3.1%
Fresno Pension Obligation Taxable 7.80%,
6/1/14.................................. AAA $ 500 $ 516,040
Oakland Pension Obligation Taxable
Series A 6.95%, 12/15/08................ AAA 3,200 3,178,176
Pasadena Pension Funding Revenue Taxable
Series A 7.10%, 5/15/10................. AAA 1,900 1,884,401
------------
5,578,617
------------
CONNECTICUT--1.3%
Mashantucket Western Pequot Tribe
Revenue Taxable Series A 6.91%,
9/1/12.................................. AAA 1,400 1,364,594
Mashantucket Western Pequot Tribe
Revenue Taxable Series A 144A 6.57%,
9/1/13(b)............................... AAA 1,075 1,008,511
------------
2,373,105
------------
FLORIDA--1.1%
University of Miami Exchangeable Revenue
Taxable Series A 7.65%, 4/1/20.......... AAA 2,000 1,944,780
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
ILLINOIS--1.1%
Illinois Educational Facilities
Authority-Loyola University Revenue
Taxable Series A 7.84%, 7/1/24.......... AAA $ 2,000 $ 1,976,360
PENNSYLVANIA--1.6%
Pittsburgh Pension General Obligation
Taxable Series B 6.35%, 3/1/13.......... AAA 3,000 2,752,260
------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $15,199,543) 14,625,122
------------------------------------------------------------------------------
ASSET-BACKED SECURITIES--1.1%
Pennant CBO Ltd. 1A, D 13.43%,
3/14/11................................. Ba(c) 2,000 2,005,000
------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $1,947,034) 2,005,000
------------------------------------------------------------------------------
CORPORATE BONDS--22.1%
AEROSPACE/DEFENSE--0.7%
BE Aerospace, Inc. 9.50%, 11/1/08....... B 1,250 1,231,250
AIRLINES--1.2%
Northwest Airlines Corp. Series 00-1, G
8.072%, 10/1/19......................... AAA 2,000 2,066,040
</TABLE>
See Notes to Financial Statements 5
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
BROADCASTING (TELEVISION, RADIO & CABLE)--0.5%
RCN Corp. 10.125%, 1/15/10.............. B- $ 1,400 $ 959,000
COMMUNICATIONS EQUIPMENT--3.4%
Crown Castle International Corp. 0%,
5/15/11(d).............................. B 2,975 1,911,437
Metromedia Fiber Network, Inc. 10%,
12/15/09(g)............................. B+ 2,000 1,525,760
Spectrasite Holdings, Inc. Series B 0%,
3/15/10(d).............................. B- 2,200 1,078,000
Telecorp PCS, Inc. 10.625%, 7/15/10..... B(c) 1,500 1,503,750
------------
6,018,947
------------
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--2.7%
Horseshoe Gaming Holdings Corp. Series B
8.625%, 5/15/09......................... B+ 1,500 1,455,000
Mandalay Resort Group 10.25%, 8/1/07.... BB- 1,300 1,335,750
Mohegan Tribal Gaming 8.125%, 1/1/06.... BB 500 485,625
Park Place Entertainment Corp. 9.375%,
2/15/07................................. BB+ 1,000 1,012,500
Station Casinos, Inc. 144A 9.875%,
7/1/10(b)............................... B+ 505 507,525
------------
4,796,400
------------
HEALTH CARE (HOSPITAL MANAGEMENT)--1.0%
HCA-The Healthcare Co. 8.75%, 9/1/10.... BB+ 1,750 1,768,615
HEALTH CARE (SPECIALIZED SERVICES)--1.1%
HEALTHSOUTH Corp. 144A 10.75%,
10/1/08(b).............................. BB+ 1,950 1,966,033
INSURANCE (MULTI-LINE)--3.6%
Middletown Trust Series C 11.75%,
7/15/10(i).............................. A+ 6,146 6,453,272
LEISURE TIME (PRODUCTS)--0.6%
Bally Total Fitness Holding Corp.
Series D 9.875%, 10/15/07............... B- 1,250 1,168,750
OIL & GAS (DRILLING & EQUIPMENT)--0.5%
R & B Falcon Corp. Series B 6.75%,
4/15/05................................. B+ 1,000 940,000
POWER PRODUCERS (INDEPENDENT)--1.0%
AES Corp. 9.375%, 9/15/10............... BB 1,750 1,785,000
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
RAILROADS--0.4%
Kansas City Southern Industries, Inc.
144A 9.50%, 10/1/08(b).................. BB- $ 750 $ 765,000
RETAIL (SPECIALTY)--1.0%
Musicland Group, Inc. 9%, 6/15/03....... B 2,000 1,820,000
SERVICES (COMMERCIAL & CONSUMER)--1.5%
IT Group, Inc. (The) 11.25%, 4/1/09..... B+ 1,665 1,423,575
Service Corporation International 7.20%,
6/1/06.................................. BB- 2,200 1,221,000
------------
2,644,575
------------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.2%
Metromedia International Group, Inc.
10.50%, 9/30/07......................... NR 837 393,377
TELECOMMUNICATIONS (LONG DISTANCE)--2.1%
Level 3 Communication, Inc. 10.75%,
3/15/08(g).............................. B 2,000 1,440,995
NTL Communications Corp. Series B 9.25%,
11/15/06(g)............................. B 3,000 2,237,781
------------
3,678,776
------------
TEXTILES (APPAREL)--0.6%
Collins & Aikman Products Co. 11.50%,
4/15/06................................. B 1,250 1,084,375
------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $43,089,555) 39,539,410
------------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED SECURITIES--25.6%
CS First Boston Mortgage Securities
Corp. 97-SPCE, C 7.077%, 2/20/07........ AA(c) 4,000 3,941,252
CS First Boston Mortgage Securities
Corp. 97-C2, A3 6.55%, 11/17/07......... AAA 3,000 2,915,211
CS First Boston Mortgage Securities
Corp. 97-1R, 1M4 7.572%, 2/28/22(d)..... Baa(c) 4,503 4,148,453
Commercial Mortgage Asset Trust 99-C1 D
7.35%, 10/17/13......................... BBB 3,500 3,211,250
First Boston Mortgage Securities Corp.
93-5, B2 7.30%, 7/25/23................. A+(c) 2,664 2,559,858
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
First Chicago/Lennar Trust 97-CHL1, D
8.107%, 5/29/08(d)...................... BB(c) $ 4,000 $ 3,410,000
First Plus Home Loan Trust 98-1, B1
7.63%, 1/10/24.......................... BBB 2,000 1,820,625
First Union-Lehman Brothers Commercial
Mortgae Trust 97-C2, F 7.50%, 9/18/15... BB+ 1,000 787,872
LB Commercial Conduit Mortgage Trust
98-C4, F 6%, 12/15/08................... BB+ 1,640 1,250,831
Mortgage Capital Funding, Inc. 98-MC2, B
6.549%, 5/18/08......................... Aa(c) 2,500 2,388,477
Norwest Asset Securities Corp. 96-3, B1
7.25%, 9/25/26.......................... AA+(c) 3,349 3,253,853
Norwest Asset Securities Corp. 97-18, B2
6.75%, 12/25/27......................... BBB(c) 1,018 922,616
Norwest Asset Securities Corp. 98-2, B1
6.50%, 2/25/28.......................... A(c) 2,917 2,688,846
Norwest Asset Securities Corp. 98-22, B3
6.25%, 9/25/28.......................... BBB(c) 611 531,190
Norwest Asset Securities Corp. 99-3, B3
6%, 1/25/29............................. BBB(c) 735 625,663
Norwest Asset Securities Corp. 99-6, B3
6%, 3/25/29............................. BBB(c) 431 366,280
Norwest Asset Securities Corp. 99-12, B3
6.25%, 5/25/29.......................... BBB(c) 491 424,787
Norwest Asset Securities Corp. 99-17, B3
6.25%, 6/25/29.......................... BBB(c) 554 478,485
Paine Webber Mortgage Acceptance Corp.
00-1, M 7.75%, 9/25/30.................. AA(c) 1,946 1,931,245
Ryland Mortgage Securities Corp. III
92-A, 1A 8.256%, 3/29/30................ A- 139 137,957
Structured Asset Securities Corp. 00-C2,
L 8.37%, 3/20/03(d)..................... BB+(c) 1,926 1,868,088
Structured Asset Securities Corp.
98-C3A, H 7.172%, 4/25/03(d)............ Baa(c) 4,000 3,958,701
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
Wells Fargo Mortgage Backed Securities
Trust 00-2, 2B2 7.75%, 6/25/30.......... A(c) $ 629 $ 608,642
Wells Fargo Mortgage Backed Securities
Trust 00-2, 2B3 7.75%, 6/25/30.......... BBB(c) 419 390,230
Well Fargo Mortgage Backed Securities
Trust 00-6, B2 7%, 9/25/30.............. A(c) 787 721,327
Wells Fargo Mortgage Backed Securities
Trust 00-6, B3 7%, 9/25/30.............. BBB(c) 524 473,803
------------------------------------------------------------------------------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $46,267,576) 45,815,542
------------------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--19.3%
ARGENTINA--1.1%
Republic of Argentina RegS 11.75%,
2/12/07(f).............................. BBB- 2,350 1,892,147
BRAZIL--5.1%
Republic of Brazil DCB-L Series 18 YR
7.688%, 4/15/12(d)...................... B+ 3,500 2,609,687
Republic of Brazil C Bond 8%, 4/15/14... B+ 7,019 5,251,117
Republic of Brazil 12.25%, 3/6/30....... B+ 1,500 1,305,000
------------
9,165,804
------------
BULGARIA--2.2%
Republic of Bulgaria IAB PDI Euro 7.75%,
7/28/11(d).............................. B+ 5,250 3,937,500
COSTA RICA--0.6%
Republic of Costa Rica 144A 9.995%,
8/1/20(b)............................... BB 1,000 1,002,500
CROATIA--1.7%
Croatia Series B 7.75%, 7/31/06(d)...... BBB- 2,675 2,547,932
Croatia Series A 7.75%, 7/31/10(d)...... BBB- 636 588,636
------------
3,136,568
------------
MEXICO--4.7%
United Mexican States Global Bond
8.625%, 3/12/08......................... BB+ 1,000 977,500
United Mexican States Global Bond
11.375%, 9/15/16........................ BB+ 2,250 2,555,438
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
MEXICO--CONTINUED
United Mexican States Global Bond
11.50%, 5/15/26......................... BB+ $ 4,125 $ 4,873,688
------------
8,406,626
------------
PANAMA--0.7%
Republic of Panama 9.375%, 4/1/29....... BB+ 1,250 1,206,875
PHILIPPINES--0.4%
Republic of Philippines 9.875%,
1/15/19................................. BB+ 1,000 747,500
POLAND--1.4%
Poland Bearer PDI 6%, 10/27/14(d)....... BBB+ 2,750 2,545,469
RUSSIA--1.0%
Russia Treasury Bill GKO 0%,
11/15/00(e)............................. NR 10,000 410,314
Russia Treasury Bill OFZ 14%,
9/12/01(e).............................. NR 36,898 1,298,262
------------
1,708,576
------------
VENEZUELA--0.4%
Republic of Venezuela DCB Series DL
7.875%, 12/18/07(d)..................... B 893 748,878
------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(IDENTIFIED COST $38,086,427) 34,498,443
------------------------------------------------------------------------------
FOREIGN CORPORATE BONDS--14.9%
BERMUDA--0.5%
Flag Telecom Ltd. 11.625%, 3/30/10(g)... B 1,250 874,133
CANADA--2.5%
Clearnet Communications, Inc. 0%,
5/1/09(d)............................... BBB+ 2,300 1,863,000
GT Group Telecom, Inc. 0%, 2/1/10(d).... B- 4,000 1,600,000
Microcell Telecommunications, Inc.
Series B 0%, 6/1/06(d).................. B(c) 1,000 967,500
------------
4,430,500
------------
CHILE--0.6%
Petropower I Funding Trust 144A 7.36%,
2/15/14(b).............................. BBB 1,321 1,157,143
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
IRELAND--0.7%
Clondalkin Industries PLC 10.625%,
1/15/10(g).............................. B(c) $ 1,500 $ 1,239,680
ISRAEL--0.7%
Partner Communications Company Ltd.
Series DTC 13%, 8/15/10................. B- 1,500 1,233,750
MEXICO--3.5%
Banco Nacional de Mexico SA US$
Remittance Master Trust 144A 7.57%,
12/31/00(b)............................. A-(c) 587 586,993
Grupo Industrial Durango 12.625%,
8/1/03.................................. BB- 1,850 1,868,500
Grupo Iusacell SA de CV 14.25%,
12/1/06................................. B+ 1,950 1,969,500
Maxcom Telecomunicaciones SA
Series B 13.75%, 4/1/07................. NR 2,000 950,000
Vicap SA 11.375%, 5/15/07............... B+ 1,000 850,000
------------
6,224,993
------------
NETHERLANDS--3.7%
Deutsche Telekom International Finance
BV 8%, 6/15/10.......................... A- 1,500 1,534,743
Deutsche Telekom International Finance
BV 6.625%, 7/6/10(g).................... A- 2,000 1,700,544
Netia Holdings BV 13.75%, 6/15/10(g).... B+ 1,500 1,118,891
Telefonica Europe BV 7.75%, 9/15/10..... A+ 1,000 1,006,316
United Pan-Europe Communications NV
Series B 11.25%, 11/1/09(g)............. B 2,000 1,313,849
------------
6,674,343
------------
POLAND--1.1%
TPSA Finance BV 144A 7.75%,
12/10/08(b)............................. BBB 2,050 1,937,250
UNITED KINGDOM--1.6%
Atlantic Telecom Group PLC 13%,
1/15/10(g).............................. NR 1,875 794,667
Colt Telecom Group PLC 7.625%,
12/15/09(g)............................. B+ 2,000 1,491,854
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ -------- ------------
<S> <C> <C> <C>
UNITED KINGDOM--CONTINUED
Jazztel PLC 13.25%, 12/15/09(g)......... CCC+ $ 1,000 $ 618,780
------------
2,905,301
------------
------------------------------------------------------------------------------
TOTAL FOREIGN CORPORATE BONDS
(IDENTIFIED COST $32,496,984) 26,677,093
------------------------------------------------------------------------------
CONVERTIBLE BONDS--0.4%
COMMUNICATIONS EQUIPMENT--0.4%
Earthweb, Inc. Cv. 144A 7%, 1/25/05(b).. NR 1,500 735,000
------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS
(IDENTIFIED COST $1,500,000) 735,000
------------------------------------------------------------------------------
FOREIGN CONVERTIBLE BONDS--1.4%
RUSSIA--1.4%
Lukinter Finance Lukoil Cv. RegS 3.50%,
5/6/02.................................. CCC 2,375 2,576,875
------------------------------------------------------------------------------
TOTAL FOREIGN CONVERTIBLE BONDS
(IDENTIFIED COST $2,893,892) 2,576,875
------------------------------------------------------------------------------
<CAPTION>
SHARES
--------
PREFERRED STOCKS--3.7%
<S> <C> <C> <C>
AGENCY NON MORTGAGE-BACKED SECURITIES--1.5%
Home Ownership Funding 2,
Step-down Pfd. 144A 13.338%(b)(d)..................... 3,500 2,662,100
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--1.1%
Nextel Communications, Inc. PIK
11.125%................................. 21,121 1,974,841
TELECOMMUNICATIONS (LONG DISTANCE)--1.1%
Global Crossing Holdings Ltd. PIK
10.50%.................................. 20,000 1,920,000
------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $6,694,138) 6,556,941
------------------------------------------------------------------------------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMON STOCKS--0.6%
PAPER & FOREST PRODUCTS--0.0%
Northampton Pulp LLC(h)(i)............................ 3,650 $ 50,187
TELECOMMUNICATIONS (LONG DISTANCE)--0.6%
AT&T Latin America Corp. Class A(h)..... 137,550 980,044
------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $953,940) 1,030,231
------------------------------------------------------------------------------
WARRANTS--0.1%
COMMUNICATIONS EQUIPMENT--0.1%
Atlantic Telecom Group PLC Warrants
(United Kingdom)(b)(h).................. 1,875 7,947
GT Group Telecom, Inc. Warrants
(Canada)(b)(h).......................... 4,000 240,000
------------------------------------------------------------------------------
TOTAL WARRANTS
(IDENTIFIED COST $0) 247,947
------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER
OF
CONTRACTS
---------
<S> <C> <C> <C>
OPTIONS--0.1%
Russian Federation 2.50%, 3/31/30 Call
Options 11/20/00 $36.50 (Par subject to
call $10,000,000)....................... 1,000 147,000
Russian Federation 2.50%, 3/31/30 Call
Options 11/29/00 $41.75 (Par subject to
call $10,000,000)....................... 1,000 17,500
---------------------------------------------------------------------
TOTAL OPTIONS
(IDENTIFIED COST $695,000) 164,500
---------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--97.5%
(IDENTIFIED COST $189,824,089) 174,472,104
---------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------- ------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--3.6%
COMMERCIAL PAPER--0.8%
Koch Industries, Inc. 6.62%, 11/1/00.... A-1+ $ 930 $ 930,000
Special Purpose Accounts Receivable
Cooperative Corp. 6.62%, 11/1/00........ A-1 610 610,000
------------
1,540,000
------------
FORWARD CONTRACT LOAN TRANSACTION--2.8%
VoiceStream Wireless Corp. Term Loan B
2.25%, 5/7/01........................... A-1 5,000 4,962,500
-----------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $6,531,581) 6,502,500
-----------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--101.1%
(IDENTIFIED COST $196,355,670) 180,974,604(a)
Cash and receivables, less liabilities--(1.1%) (1,893,982)
------------
NET ASSETS--100.0% $179,080,622
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $2,264,272 and gross
depreciation of $17,862,623 for federal income tax purposes. At October 31,
2000, the aggregate cost of securities for federal income tax purposes was
$196,572,955.
(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,
2000, these securities amounted to a value of $12,576,002 or 7% of net
assets.
(c) As rated by Moody's, Fitch or Duff & Phelps.
(d) Variable or step coupon security; interest rate shown reflects the rate
currently in effect.
(e) Par value represents Russian Rubles.
(f) Par value represents Argentine Pesos.
(g) Par value represents Euro.
(h) Non-income producing.
(i) Security valued at fair value as determined in good faith by or under the
direction of the Directors.
10 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C>
ASSETS
Investments securities at value
(Identified cost $196,355,670) $180,974,604
Cash 2,245
Foreign currency at value
(Identified cost $92,946) 92,892
Receivables
Interest 3,494,874
Investment securities sold 1,027,387
Fund shares sold 58,983
Net unrealized appreciation on swap
agreements 2,892,072
Prepaid expenses 1,847
------------
Total assets 188,544,904
------------
LIABILITIES
Payables
Investment securities purchased 6,797,826
Fund shares repurchased 332,474
Income distribution payable 246,766
Distribution fee 83,973
Investment advisory fee 84,976
Transfer agent fee 77,553
Financial agent fee 15,225
Trustees' fee 10,208
Net unrealized depreciation on
forward currency contract 1,726,339
Accrued expenses 88,942
------------
Total liabilities 9,464,282
------------
NET ASSETS $179,080,622
============
NET ASSETS CONSIST OF:
Capital paid in on shares of common
stock $250,670,443
Undistributed net investment income 538,220
Accumulated net realized loss (57,874,242)
Net unrealized depreciation (14,253,799)
------------
NET ASSETS $179,080,622
============
CLASS A
Shares of common stock outstanding,
$0.10 par value,
166,666,667 shares authorized (Net
Assets $109,355,988) 10,478,455
Net asset value per share $10.44
Offering price per share
$10.44/(1-4.75%) $10.96
CLASS B
Shares of common stock outstanding,
$0.10 par value,
166,666,667 shares authorized (Net
Assets $63,529,256) 6,098,491
Net asset value and offering price
per share $10.42
CLASS C
Shares of common stock outstanding,
$0.10 par value,
166,666,666 shares authorized (Net
Assets $6,195,378) 592,943
Net asset value and offering price
per share $10.45
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 20,045,309
Dividends 763,243
--------------
Total investment income 20,808,552
--------------
EXPENSES
Investment advisory fee 1,122,184
Distribution fee, Class A 292,346
Distribution fee, Class B 803,417
Distribution fee, Class C 67,535
Financial agent fee 205,730
Transfer agent 377,042
Printing 79,486
Custodian 56,086
Professional 38,865
Registration 38,187
Trustees 23,360
Miscellaneous 18,997
--------------
Total expenses 3,123,235
Custodian fees paid indirectly (1,464)
--------------
Net expenses 3,121,771
--------------
NET INVESTMENT INCOME 17,686,781
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized loss on securities (7,156,063)
Net realized gain on swaps 23,383
Net realized loss on options (56,428)
Net realized loss on foreign currency (152,664)
Net change in unrealized appreciation (depreciation)
on investments (2,037,037)
Net change in unrealized appreciation (depreciation)
on swap agreements 2,892,072
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions (1,750,030)
--------------
NET LOSS ON INVESTMENTS (8,236,767)
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 9,450,014
==============
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/00 10/31/99
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 17,686,781 $ 21,380,726
Net realized gain (loss) (7,341,772) (39,790,682)
Net change in unrealized appreciation (depreciation) (894,995) 33,459,211
------------ ------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS 9,450,014 15,049,255
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (9,613,020) (12,709,813)
Net investment income, Class B (6,040,317) (8,978,439)
Net investment income, Class C (506,308) (572,784)
In excess of net investment income, Class A -- (143,541)
In excess of net investment income, Class B -- (101,400)
In excess of net investment income, Class C -- (6,469)
------------ ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (16,159,645) (22,512,446)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (2,960,461 and 2,210,416
shares, respectively) 32,377,070 24,800,587
Net asset value of shares issued from reinvestment of
distributions
(521,532 and 705,561 shares, respectively) 5,679,445 7,902,801
Cost of shares repurchased (4,610,373 and 5,266,656
shares, respectively) (50,532,981) (58,965,528)
------------ ------------
Total (12,476,466) (26,262,140)
------------ ------------
CLASS B
Proceeds from sales of shares (434,620 and 551,304 shares,
respectively) 4,775,808 6,181,202
Net asset value of shares issued from reinvestment of
distributions
(250,107 and 372,459 shares, respectively) 2,722,782 4,168,689
Cost of shares repurchased (3,142,522 and 3,460,848
shares, respectively) (34,316,301) (38,603,400)
------------ ------------
Total (26,817,711) (28,253,509)
------------ ------------
CLASS C
Proceeds from sales of shares (174,137 and 297,288 shares,
respectively) 1,914,239 3,326,561
Net asset value of shares issued from reinvestment of
distributions
(22,935 and 32,606 shares, respectively) 250,358 365,221
Cost of shares repurchased (261,656 and 201,989 shares,
respectively) (2,881,085) (2,240,507)
------------ ------------
Total (716,488) 1,451,275
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM SHARES TRANSACTIONS (40,010,665) (53,064,374)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (46,720,296) (60,527,565)
NET ASSETS
Beginning of period 225,800,918 286,328,483
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) OF
$538,220 AND DISTRIBUTIONS IN EXCESS OF NET INVESTMENT
INCOME OF $292,270, RESPECTIVELY] $179,080,622 $225,800,918
============ ============
</TABLE>
12 See Notes to Financial Statements
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------
YEAR ENDED OCTOBER 31
-----------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.85 $ 11.20 $ 13.50 $ 13.27 $ 12.56
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.95 0.96 1.07 1.03 0.94
Net realized and unrealized gain (loss) (0.46) (0.30) (1.88) 0.18 0.72
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.49 0.66 (0.81) 1.21 1.66
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.90) (1.00) (1.07) (0.98) (0.95)
Dividends from net realized gains -- -- (0.36) -- --
In excess of net investment income -- (0.01) -- -- --
In excess of net realized gains -- -- (0.06) -- --
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (0.90) (1.01) (1.49) (0.98) (0.95)
--------- --------- --------- --------- ---------
CHANGE IN NET ASSET VALUE (0.41) (0.35) (2.30) 0.23 0.71
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.44 $ 10.85 $ 11.20 $ 13.50 $ 13.27
========= ========= ========= ========= =========
Total return(1) 4.49% 5.97% (6.86)% 9.22% 13.75%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $109,356 $125,931 $156,317 $191,486 $169,664
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.22%(2) 1.14%(3) 1.08% 1.04%(2) 1.07%
Net investment income 8.99% 8.59% 8.17% 7.28% 7.56%
Portfolio turnover 168% 133% 157% 295% 255%
</TABLE>
(1) Maximum sales charges are not reflected in the total return calculation.
(2) 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.
(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 be 1.13%.
See Notes to Financial Statements 13
<PAGE>
Phoenix-Goodwin Multi-Sector Fixed Income Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------
YEAR ENDED OCTOBER 31
-----------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.84 $ 11.18 $ 13.48 $ 13.25 $ 12.54
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.87 0.87 0.96 0.92 0.85
Net realized and unrealized gain (loss) (0.47) (0.29) (1.87) 0.18 0.71
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.40 0.58 (0.91) 1.10 1.56
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income (0.82) (0.91) (0.97) (0.87) (0.85)
Dividends from net realized gains -- -- (0.36) -- --
In excess of net investment income -- (0.01) -- -- --
In excess of net realized gains -- -- (0.06) -- --
--------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (0.82) (0.92) (1.39) (0.87) (0.85)
--------- --------- --------- --------- ---------
CHANGE IN NET ASSET VALUE (0.42) (0.34) (2.30) 0.23 0.71
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.42 $ 10.84 $ 11.18 $ 13.48 $ 13.25
========= ========= ========= ========= =========
Total return(1) 3.66% 5.15% (7.51)% 8.42% 12.84%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $63,529 $92,725 $124,075 $154,989 $142,869
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.95%(2) 1.89%(5) 1.84% 1.79%(2) 1.82%
Net investment income 8.24% 7.83% 7.36% 6.52% 6.80%
Portfolio turnover 168% 133% 157% 295% 255%
</TABLE>
<TABLE>
<CAPTION>
CLASS C
-----------------------------------------------------
FROM
YEAR ENDED OCTOBER 31 INCEPTION
------------------------------------- 10/14/97 TO
2000 1999 1998 10/31/97
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.87 $ 11.21 $ 13.48 $14.22
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.86 0.88 0.97 0.04
Net realized and unrealized gain (loss) (0.46) (0.30) (1.85) (0.74)
--------- --------- --------- ------
TOTAL FROM INVESTMENT OPERATIONS 0.40 0.58 (0.88) (0.70)
--------- --------- --------- ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.82) (0.91) (0.97) (0.04)
Dividends from net realized gains -- -- (0.36) --
In excess of net investment income -- (0.01) -- --
In excess of net realized gains -- -- (0.06) --
--------- --------- --------- ------
TOTAL DISTRIBUTIONS (0.82) (0.92) (1.39) (0.04)
--------- --------- --------- ------
CHANGE IN NET ASSET VALUE (0.42) (0.34) (2.27) (0.74)
--------- --------- --------- ------
NET ASSET VALUE, END OF PERIOD $ 10.45 $ 10.87 $ 11.21 $13.48
========= ========= ========= ======
Total return(1) 3.65% 5.23% (7.36)% (5.00)%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $6,195 $7,145 $5,937 $284
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.97%(2) 1.89%(5) 1.88% 1.62%(2)(4)
Net investment income 8.23% 7.83% 7.46% 4.75%(4)
Portfolio turnover 168% 133% 157% 295%(3)
</TABLE>
(1) Maximum sales charges are not reflected in the total return calculation.
(2) 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.
(3) Not annualized
(4) Annualized
(5) 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 be 1.88%.
14 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000
1. SIGNIFICANT ACCOUNTING POLICIES
Effective October 12, 2000, Phoenix-Goodwin Multi-Sector Fixed Income Fund
(the "Fund") is organized as a Delaware business trust, (prior to that date, the
Fund was organized as a Maryland corporation) 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 maximize
current income consistent with the preservation of capital by investing in fixed
income securities. 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 4.75%. Class B shares are
sold with a contingent deferred sales charge which declines from 5% to zero
depending on the period of time the shares are held. Class C shares are sold
with a 1% contingent deferred sales charge if redeemed within one year of
purchase. 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 accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts 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. Equity securities are valued at the
last sale price, or if there has been no sale that day, at the last bid price.
All other securities and assets are valued at their fair value as determined in
good faith by or under the direction of the Trustees.
Certain securities held by the Fund were valued on the basis of a price
provided by a principal market maker. The prices provided by the principal
market makers may differ from the value that would be realized if the securities
were sold. At October 31, 2000, the total value of securities for which prices
were provided by market makers represented approximately 8% of net assets.
B. SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are recorded on the trade date. Interest income is
recorded on the accrual basis. Dividend income is recorded on ex-dividend date
or, in case of certain foreign securities, as soon as the Fund is notified.
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 accounting principles generally accepted in
the United States. 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 and 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.
15
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 (CONTINUED)
G. OPTIONS:
The Fund may write covered options or purchase options contracts for the
purpose of hedging against changes in the market value of the underlying
securities or foreign currencies.
The Fund will realize a gain or loss upon the expiration or closing of the
option transaction. Gains and losses on written options are reported separately
in the Statement of Operations. When a written option is exercised, the proceeds
on sales or amounts paid are adjusted by the amount of premium received. Options
written are reported as a liability in the Statement of Assets and Liabilities
and subsequently marked-to-market to reflect the current value of the option.
The risk associated with written options is that the change in value of options
contracts may not correspond to the change in value of the hedged instruments.
In addition, losses may arise from changes in the value of the underlying
instruments, or if a liquid secondary market does not exist for the contracts.
The Fund may purchase options which are included in the Schedule of
Investments and subsequently marked-to-market to reflect the current value of
the option. When a purchased option is exercised, the cost of the security is
adjusted by the amount of premium paid. The risk associated with purchased
options is limited to the premium paid.
H. SWAP AGREEMENTS:
The Fund may invest in swap agreements for the purpose of hedging against
changes in interest rates or foreign currencies. Swap agreements involve the
exchange by the Fund with another party of their respective commitments to pay
or receive interest (e.g., an exchange of floating rate payments for fixed rate
payments with respect to a notional amount of principal). Swaps are marked to
market daily based upon quotations from market makers and the change, if any, is
recorded as unrealized gain or loss in the Statement of Operations. Net payments
of interest are recorded as interest income. Entering into these agreements
involves, to varying degrees, elements of credit and market risk in excess of
the amounts recognized on the Statement of Assets and Liabilities. Such risks
involve the possibility that there will be no liquid market for these
agreements, that the counterparty to the agreement may default on its obligation
to perform and that there may be unfavorable changes in the fluctuation of
interest rates and/or exchange rates. At October 31, 2000, the Fund had the
following swaps outstanding:
<TABLE>
<CAPTION>
Unrealized
Notional Appreciation
Amount (Depreciation)
--------------- --------------
<C> <S> <C>
$2,100,000 Agreement with Morgan Stanley Capital
Services Inc. terminating on
November 1, 2004 to receive interest at
13.26% in exchange for payment of 11.25%
on EUR 2,000,000........................ $ 566,667
2,063,200 Agreement with Chase Manhattan Bank
terminating on December 15, 2004 to
receive interest at 12.09% in exchange
for payment of 10.00% on EUR
2,000,000............................... 495,371
1,203,125 Agreement with Morgan Stanley Capital
Services Inc. terminating on March 30,
2005 to receive interest at 13.95% in
exchange for payment of 11.625% on EUR
1,250,000............................... 216,875
3,089,000 Agreement with Morgan Stanley Capital
Services Inc. terminating on
November 15, 2006 to receive interest
at 11.07% in exchange for payment of
9.25% on EUR 3,000,000.................. 758,750
1,956,000 Agreement with Morgan Stanley Capital
Services Inc. terminating on March 15,
2008 to receive interest at 12.82% in
exchange for payment of 10.75% on EUR
2,000,000............................... 418,909
2,035,000 Agreement with Morgan Stanley Capital
Services Inc. terminating on
December 15, 2004 to receive interest
at 9.64% in exchange for payment of
7.625% on EUR 2,000,000................. 435,500
----------
$2,892,072
==========
</TABLE>
16
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 (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% for the first $1 billion of the average daily net assets of the Fund.
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 $10,932 for Class A shares, and deferred
sales charges of $167,665 for Class B and $1,771 for Class C shares for the year
ended October 31, 2000. In addition, the Fund pays PEPCO a distribution fee at
an annual rate of 0.25% for Class A shares, 1.00% for Class B shares and 1.00%
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 Distribution 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, 2000, $692,502 was retained by the Distributor,
$432,410 was paid to unaffiliated participants, and $38,386 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 of
PEPCO to provide financial reporting, tax services and oversight of subagent's
performance. For the year ended October 31, 2000, financial agent fees were
$205,730, of which PEPCO received $38,860. 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
Company ("State Street") as sub-transfer agent. For the year ended October 31,
2000, transfer agent fees were $377,042 of which PEPCO retained $166,738 which
is net of the fees paid to State Street.
At October 31, 2000, PHL and affiliates held 82,881 Class A shares with a
value of $865,278.
3. PURCHASE AND SALE OF SECURITIES
During the year ended October 31, 2000, purchases and sales of investments,
excluding short-term securities and U.S. Government and agency, securities,
amounted to $268,467,359 and $296,024,977, respectively. Purchases and sales of
long-term U.S. Government and agency securities amounted to $66,580,477 and
$73,355,223, respectively.
4. FORWARD CURRENCY CONTRACTS
As of October 31, 2000 the Fund had entered into the following forward
currency contract which contractually obligates the Fund to receive currency at
the specified date:
<TABLE>
<CAPTION>
Net
Unrealized
Contract to In Exchange Settlement Appreciation
Receive For Date Value (Depreciation)
-------------------- -------------------- ---------- ----------- --------------
<S> <C> <C> <C> <C>
Euros 15,488,000 US $14,969,153 6/7/01 13,242,814 (1,726,339)
</TABLE>
5. CREDIT RISK
In countries with limited or developing markets, investments may present
greater risks 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 the Fund's ability to
repatriate such amounts.
High yield-high risk securities typically entail greater price volatility and
principal and interest rate risk. There is a greater chance that an issuer will
not be able to make principal and interest payments on time. Analysis of the
creditworthiness of issuers of high yield securities may be complex, and as a
result, it may be more difficult for the subadviser to accurately predict risk.
6. LOAN AGREEMENTS
The Fund may invest in direct debt instruments, which are interests in amounts
owed by a corporate, governmental, or other borrower to lenders or lending
syndicates. The Fund's investments in loans may be in the form of participations
in loans or assignments of all or a portion of loans from third parties. A loan
is often administered by a bank or other financial institution (the lender) that
acts as agent for all holders. The agent administers the terms of the loan, as
specified in the loan agreement. When investing in a loan participation, the
Fund has the right to receive payments of principal, interest and any fees to
which it is entitled only from the lender selling the loan agreement and only
upon receipt by the lender of payments from the borrower. The Fund generally has
no right to enforce compliance with the terms of the loan agreement with the
borrower. As a result, the Fund may be subject to the credit risk of both the
borrower and the lender that is selling the loan agreement. For loans which the
Fund is a participant, the Fund may not sell its participation in the loan
without the lender's prior consent. When the Fund purchases
17
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 (CONTINUED)
assignments from lenders it acquires direct rights against the borrower on the
loan. Direct indebtedness of emerging countries involves a risk that the
government entities responsible for the repayment of the debt may be unable, or
unwilling to pay the principal and interest when due.
The fund may use forward contract loan transactions to gain exposure to the
syndicated loan market. As a result, the fund may be subject to the credit risk
of both the borrower and the lender that is selling the underlying loans.
7. CAPITAL LOSS CARRYOVERS
The Fund has capital loss carryover of $59,383,296 comprised of $8,655,748,
$41,913,137 and $8,814,411, expiring in 2006, 2007 and 2008, respectively, which
may be used to offset future capital gains.
8. RECLASSIFICATION OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, the Funds have 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, 2000, the Fund decreased
undistributed net investment income by $696,646, decreased accumulated net
realized loss by $173,657 and increased capital paid in on shares of common
stock by $522,989.
This report is not authorized for distribution to prospective investors in the
Phoenix-Goodwin Multi-Sector Fixed Income Fund unless preceded or accompanied by
an effective Prospectus which includes information concerning the sales charge,
Fund's record and other pertinent information.
18
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[LOGO]
To the Board of Trustees and Shareholders of
Phoenix-Goodwin Multi-Sector Fixed Income Fund
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, 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 Phoenix-Goodwin Multi-Sector Fixed
Income Fund (the "Fund") at October 31, 2000, and the results of its operations,
the changes in its net assets and the financial highlights for the periods
indicated, in conformity with accounting principles generally accepted in the
United States of America. 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 auditing standards generally accepted in
the United States of America, 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, 2000 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 15, 2000
19
<PAGE>
RESULTS OF SHAREHOLDER MEETING (UNAUDITED)
Special meetings of Shareholders of Phoenix-Goodwin Multi-Sector Fixed Income
Fund were held on May 16, 2000 and October 12, 2000, to approve the following
matters:
1. Approve a new Rule 12b-1 Distribution Plan for Class B Shares.
2. Approve a new Rule 12b-1 Distribution Plan for Class C Shares.
3. Approve an Agreement and Plan of Reorganization which provides for the
reorganization of the Fund into a series of a new Delaware business trust.
4. Amend the fundamental investment restriction of the Fund regarding
concentration.
5. Amend the fundamental investment restriction of the Fund regarding
diversification.
6. Amend the fundamental investment restriction of the Fund regarding
borrowing.
7. Amend the fundamental investment restriction of the Fund regarding the
issuance of senior securities.
8. Amend the fundamental investment restriction of the Fund regarding
underwriting.
9. Amend the fundamental investment restriction of the Fund regarding
investing in real estate.
10. Amend the fundamental investment restriction of the Fund regarding
investing in commodities.
11. Amend the fundamental investment restriction of the Fund regarding
lending.
12. Eliminate the fundamental investment restriction of the Fund regarding
investing in high yield-high risk securities.
13. Eliminate the fundamental investment restriction of the Fund regarding
the purchase of securities on margin.
14. Eliminate the fundamental investment restriction of the Fund regarding
investing in companies for the purpose of exercising control or
management.
15. Eliminate the fundamental investment restriction of the Fund regarding
investing in real estate limited partnerships or in oil, gas or other
mineral leases
16. Eliminate the fundamental investment restriction of the Fund regarding
short sales.
17. Eliminate the fundamental investment restriction of the Fund regarding
repurchase agreements and participations in loans.
On the record date for these meetings, the shares outstanding and percentage of
the shares outstanding and entitled to vote that were present by proxy were as
follows:
<TABLE>
<CAPTION>
SHARES OUTSTANDING PERCENTAGE PRESENT BY PROXY
------------------ ---------------------------
<S> <C> <C>
Phoenix-Goodwin Multi-Sector Fixed
Income Fund Class B 7,690,324 51.51%
Phoenix-Goodwin Multi-Sector Fixed
Income Fund Class C 602,997 57.92%
Phoenix-Goodwin Multi Sector Fixed
Income Fund (for items 3 through 17) 17,699,492 56.51%
</TABLE>
20
<PAGE>
NUMBER OF VOTES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--------- --------- ---------
<S> <C> <C> <C> <C>
1. Approve a new Rule 12b-1 Distribution 3,511,590 117,756 332,278
Plan for Class B Shares
2. Approve a new Rule 12b-1 Distribution 298,989 4,969 45,324
Plan for Class C Shares
3. Approve an Agreement and Plan of 9,041,461 247,360 713,899
Reorganization which provides for the
reorganization of the Fund into a series
of a new Delaware business trust.
4. Amend the fundamental investment 8,859,793 298,086 844,842
restriction of the Fund regarding
concentration.
5. Amend the fundamental investment 8,814,738 318,323 869,659
restriction of the Fund regarding
diversification.
6. Amend the fundamental investment 8,634,222 471,975 896.523
restriction of the Fund regarding
borrowing.
7. Amend the fundamental investment 8,715,474 411,436 875,810
restriction of the Fund regarding the
issuance of senior securities.
8. Amend the fundamental investment 8,758,838 355,509 888,373
restriction of the Fund regarding
underwriting.
9. Amend the fundamental investment 8,732,978 401,238 868,504
restriction of the Fund regarding
investing in real estate.
10. Amend the fundamental investment 8,628,275 489,080 885,365
restriction of the Fund regarding
investing in commodities.
11. Amend the fundamental investment 8,655,076 463,943 883,701
restriction of the Fund regarding
lending.
12. Eliminate the fundamental investment 8,524,369 628,017 850,334
restriction of the Fund regarding
investing in high yield-high risk
securities.
13. Eliminate the fundamental investment 8,553,351 601,820 847,549
restriction of the Fund regarding the
purchase of securities on margin.
14. Eliminate the fundamental investment 8,693,122 467,325 842,273
restriction of the Fund regarding
investing in companies for the purpose
of exercising control or management.
15. Eliminate the fundamental investment 8,607,958 540,277 854,485
restriction of the Fund regarding
investing in real estate limited
partnerships or in oil,
gas or other mineral leases.
16. Eliminate the fundamental investment 8,652,019 492,535 858,166
restriction of the Fund regarding short
sales.
17. Eliminate the fundamental investment 8,699,676 446,320 856,724
restriction of the Fund regarding
repurchase agreements and participations
in loans.
</TABLE>
21
<PAGE>
PHOENIX-GOODWIN MULTI-SECTOR FIXED
INCOME FUND
101 Munson Street
Greenfield, Massachusetts 01301
TRUSTEES
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Francis E. Jeffries
Leroy Keith, Jr.
Philip R. McLoughlin
Everett L. Morris
James M. Oates
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
Robert S. Driessen, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Nancy J. Engberg, Assistant Secretary
INVESTMENT ADVISER
Phoenix Investment Counsel, Inc.
56 Prospect Street
Hartford, Connecticut 06115-0480
PRINCIPAL UNDERWRITER
Phoenix Equity Planning Corporation
56 Prospect Street
Hartford, Connecticut 06115-0480
TRANSFER AGENT
Phoenix Equity Planning Corporation
56 Prospect Street
Hartford, Connecticut 06115-0480
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
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
www.phoenixinvestments.com
<PAGE>
PHOENIX EQUITY PLANNING CORPORATION
PO Box 150480 PRSRT STD
Hartford CT 06115-0480 U.S. Postage
PAID
Andrew
[LOGO]PHOENIX Associates
INVESTMENT PARTNERS
For more information about
Phoenix mutual funds, please call
your financial representative or
contact us at 1-800-243-4361 or
www.phoenixinvestments.com.
PXP 660 (12/00)