N-30D 1 a2044374zn-30d.txt N-30D PHOENIX INVESTMENT PARTNERS SEMIANNUAL REPORT MARCH 31, 2001 SENECA - PHOENIX-SENECA BOND FUND - PHOENIX-SENECA MID-CAP "EDGE"-SM- FUND - PHOENIX-SENECA REAL ESTATE SECURITIES FUND [LOGO] PHOENIX INVESTMENT PARTNERS COMMITTED TO INVESTOR SUCCESS-SM- MESSAGE FROM THE PRESIDENT DEAR SHAREHOLDER: [PHOTO] We are pleased to provide this financial summary for Phoenix-Seneca Bond Fund, Phoenix-Seneca Mid-Cap "EDGE"(SM) Fund, and Phoenix-Seneca Real Estate Securities Fund for the six months ended March 31, 2001. If you have any questions, please call your financial advisor or contact Mutual Fund Services at 1-800-243-1574. You can also review your account, check your balance, purchase or exchange shares, as well as order literature and forms online at www.phoenixinvestments.com. Sincerely, /s/ Philip R. McLoughlin Philip R. McLoughlin MARCH 31, 2001 ------------------------------------------------------ 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 TABLE OF CONTENTS Phoenix-Seneca Bond Fund.................................... 3 Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund...................... 11 Phoenix-Seneca Real Estate Securities Fund.................. 17 Notes to Financial Statements............................... 23
2 PHOENIX-SENECA BOND FUND INVESTMENTS AT MARCH 31, 2001 (UNAUDITED)
PAR MOODY'S VALUE RATING (000) VALUE -------- ------- ----------- U.S. GOVERNMENT SECURITIES--11.6% U.S. TREASURY BONDS--9.1% U.S. Treasury Bonds Strip P.O. 0%, 5/15/17................................. Aaa $ 1,500 $ 595,888 U.S. Treasury Bonds Strip P.O. 0%, 5/15/20................................. Aaa 5,170 1,710,438 U.S. Treasury Bonds 6.25%, 5/15/30...... Aaa 3,050 3,349,757 ----------- 5,656,083 ----------- U.S. TREASURY NOTES--2.5% U.S. Treasury Inflationary Notes 3.625%, 1/15/08................................. Aaa 525 581,938 U.S. Treasury Notes 6.50%, 2/15/10...... Aaa 855 944,817 ----------- 1,526,755 ----------- ------------------------------------------------------------------------ TOTAL U.S. GOVERNMENT SECURITIES (IDENTIFIED COST $7,098,846) 7,182,838 ------------------------------------------------------------------------ AGENCY MORTGAGE-BACKED SECURITIES--18.5% Fannie Mae Strip I.O. 3.44%, 10/25/23(c)............................. Aaa 84 1,100 Fannie Mae 6.50%, 12/1/28............... Aaa 348 346,550 Fannie Mae 6.50%, 7/1/29................ Aaa 480 478,001 Fannie Mae 6.50%, 8/1/29................ Aaa 850 847,543 Fannie Mae 7%, 1/1/30................... Aaa 1,359 1,374,826 Fannie Mae 6%, 2/1/31................... Aaa 1,598 1,560,415 Fannie Mae 6.50%, 3/1/31(e)............. Aaa 3,293 3,282,129 Fannie Mae 7%, 3/1/31................... Aaa 700 708,313 Fannie Mae TBA 6.50%, 4/15/31........... Aaa 480 478,050 Freddie Mac 7%, 7/1/09.................. Aaa 838 854,671 Freddie Mac 7%, 7/15/23................. Aaa 854 867,108 GNMA 7%, 2/15/26........................ Aaa 15 15,454 GNMA 6.50%, 9/15/28..................... Aaa 661 661,798 ------------------------------------------------------------------------ TOTAL AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $11,359,823) 11,475,958 ------------------------------------------------------------------------ PAR MOODY'S VALUE RATING (000) VALUE -------- ------- ----------- ASSET-BACKED SECURITIES--1.4% Olympic Automobile Receivables Trust 96-D, A5 6.25%, 11/15/04................ Aaa $ 860 $ 862,349 ------------------------------------------------------------------------ TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $862,429) 862,349 ------------------------------------------------------------------------ CORPORATE BONDS--39.8% AIRLINES--1.5% Alaska Airlines, Inc. Series A 9.50%, 4/12/10................................. Baa 104 117,005 Alaska Airlines, Inc. Series D 9.50%, 4/12/12................................. Baa 422 467,720 Delta Air Lines, Inc. Series B2 10.06%, 1/2/16.................................. Baa 65 71,577 United Airlines, Inc. Series 91-B 10.11%, 2/19/06......................... Baa 15 16,464 United Airlines, Inc. Series 91-E 9.76%, 5/27/06................................. Baa 78 83,311 United Airlines, Inc. Series 95-A1 9.02%, 4/19/12.......................... Baa 171 173,668 ----------- 929,745 ----------- BANKS (MAJOR REGIONAL)--0.4% First Republic Bank 7.75%, 9/15/12(d)... BB+ 300 268,625 BANKS (MONEY CENTER)--0.6% BankAmerica Corp. Institutional Series A 144A 8.07%, 12/31/26(b)................. Aa 400 388,796 BROADCASTING (TELEVISION, RADIO & CABLE)--5.6% Adelphia Communications Corp. Series B 9.50%, 2/15/04.......................... B 651 636,222 Charter Communications, Inc. 0%, 1/15/10(c).............................. B 500 342,500
See Notes to Financial Statements 3 Phoenix-Seneca Bond Fund
PAR MOODY'S VALUE RATING (000) VALUE -------- ------- ----------- BROADCASTING (TELEVISION, RADIO & CABLE)--CONTINUED Clear Channel Communications, Inc. 8%, 11/1/08................................. Ba $ 500 $ 521,250 Fox / Liberty Networks LLC 0%, 8/15/07(c).............................. Ba 1,580 1,445,700 Jones Intercable, Inc. 9.625%, 3/15/02................................. Baa 300 310,125 Turner Broadcasting System, Inc. 8.40%, 2/1/24.................................. Baa 200 202,726 ----------- 3,458,523 ----------- COMMUNICATIONS EQUIPMENT--0.8% Crown Castle International Corp. 0%, 5/15/11(c).............................. B 700 500,500 CONSUMER (JEWELRY, NOVELTIES & GIFTS)--0.1% Finlay Fine Jewelry Corp. 8.375%, 5/1/08.................................. Ba 40 37,400 ELECTRONICS (SEMICONDUCTORS)--0.6% ON Semiconductor Corp. 12%, 8/1/09...... B 488 368,440 ENGINEERING & CONSTRUCTION--1.6% Mastec, Inc. Series B 7.75%, 2/1/08..... Ba 1,000 962,500 ENTERTAINMENT--1.5% Time Warner, Inc. 6.85%, 1/15/26........ Baa 620 631,523 Time Warner, Inc. 9.125%, 1/15/13....... Baa 65 77,484 United Artists Theatre Circuit, Inc. Series 95-A 9.30%, 7/1/15............... Caa 314 237,406 ----------- 946,413 ----------- FINANCIAL (DIVERSIFIED)--0.8% Countrywide Capital I 8%, 12/15/26...... A 200 190,901 Dollar Financial Group, Inc. Series A 10.875%, 11/15/06....................... B 75 72,094 Pinnacle Holdings, Inc. 0%, 3/15/08(c).............................. B 350 204,750 ----------- 467,745 ----------- HEALTH CARE (HOSPITAL MANAGEMENT)--2.0% Quorum Health Group, Inc. 8.75%, 11/1/05................................. Ba 825 837,375 Universal Health Services, Inc. 8.75%, 8/15/05................................. Ba 400 409,356 ----------- 1,246,731 ----------- HOMEBUILDING--1.6% Centex Corp. 7.875%, 2/1/11............. Baa 1,000 1,010,848 PAR MOODY'S VALUE RATING (000) VALUE -------- ------- ----------- INVESTMENT BANKING/BROKERAGE--2.0% Lehman Brothers Holdings, Inc. Series F 7%, 5/15/03............................. A $ 500 $ 514,898 Lehman Brothers Holdings, Inc. 8.80%, 3/1/15.................................. A 80 92,281 Socgen Real Estate LLC Series A 144A 7.64%, 12/29/49(b)(c)................... A 650 653,904 ----------- 1,261,083 ----------- LODGING-HOTELS--1.0% Hammons (John Q.) Hotels, Inc. 8.875%, 2/15/04................................. B 530 511,450 Hammons (John Q.) Hotels, Inc. 9.75%, 10/1/05................................. B 100 96,500 ----------- 607,950 ----------- MANUFACTURING (SPECIALIZED)--0.4% BGF Industries, Inc. Series B 10.25%, 1/15/09................................. B 300 277,500 OIL & GAS (REFINING & MARKETING)--0.5% El Paso Tenneco RACERS 97-C-1-2 144A 9.14%, 12/31/01(b)...................... Baa 300 303,000 PAPER & FOREST PRODUCTS--0.1% Container Corporation of America Series A 11.25%, 5/1/04........................ B 40 40,200 PUBLISHING (NEWSPAPERS)--0.5% Garden State Newspapers, Inc. Series B 8.75%, 10/1/09.......................... B 325 316,875 RAILROADS--0.4% Railworks Corp. 11.50%, 4/15/09......... Caa 600 243,000 REITS--2.9% ERP Operating L.P. 7.57%, 8/15/26....... A 170 178,970 Evans Withycomb Residential, Inc. 7.50%, 4/15/04................................. A 100 103,964 First Industrial L.P. 7.15%, 5/15/27.... Baa 500 507,819 Security Capital Pacific Trust 7.375%, 10/15/06................................ Baa 100 102,072 Security Capital Pacific Trust 6.875%, 2/15/08................................. Baa 4 4,335
4 See Notes to Financial Statements Phoenix-Seneca Bond Fund
PAR MOODY'S VALUE RATING (000) VALUE -------- ------- ----------- REITS--CONTINUED Security Capital Pacific Trust 7.90%, 2/15/16................................. Baa $ 200 $ 194,860 Sovereign Real Estate Investment Trust 12%, 8/29/49............................ Ba 500 462,500 Washington Real Estate Investment Trust 7.125%, 8/13/03......................... Baa 110 112,388 Weingarten Realty Investors Series A 6.88%, 6/25/27.......................... A 150 149,873 ----------- 1,816,781 ----------- RESTAURANTS--0.4% Jack in the Box, Inc. Series B 9.75%, 11/1/03................................. BB+(d) 250 251,250 RETAIL (FOOD CHAINS)--1.1% Stater Brothers Holdings, Inc. 10.75%, 8/15/06................................. B 750 701,250 RETAIL (GENERAL MERCHANDISE)--0.7% K Mart Funding Corp. Series F 8.80%, 7/1/10.................................. Baa 458 415,004 RETAIL (SPECIALTY)--0.4% Buhrmann US, Inc. 12.25%, 11/1/09....... B 250 267,500 SERVICES (COMMERCIAL & CONSUMER)--2.2% Coinmach Laundry Corp. Series D 11.75%, 11/15/05................................ B 255 260,100 Loomis Fargo & Co. 10%, 1/15/04......... B 300 300,000 Protection One Alarm Monitoring, Inc. 7.375%, 8/15/05......................... B 500 395,000 SC International Services, Inc. Series B 9.25%, 9/1/07........................... B 190 196,650 United Rentals, Inc. Series B 9.50%, 6/1/08.................................. B 150 137,250 Williams Scotsman, Inc. 9.875%, 6/1/07.................................. B 50 45,000 ----------- 1,334,000 ----------- TELECOMMUNICATIONS (CELLULAR/WIRELESS)--3.7% Nextel Commmunications, Inc. 0%, 10/31/07(c)............................. B 950 665,000 PAR MOODY'S VALUE RATING (000) VALUE -------- ------- ----------- TELECOMMUNICATIONS (CELLULAR/WIRELESS)--CONTINUED Orion Network Systems, Inc. 0%, 1/15/07(c).............................. Ca $ 90 $ 24,300 Sprint Spectrum L.P. 0%, 8/15/06(c)..... Baa 1,530 1,581,986 ----------- 2,271,286 ----------- TELECOMMUNICATIONS (LONG DISTANCE)--0.5% Level 3 Communications, Inc. 0%, 3/15/10(c).............................. B 750 288,750 TEXTILES (APPAREL)--1.4% Levi Strauss & Co. 7%, 11/1/06.......... Ba 1,000 875,000 WASTE MANAGEMENT--2.0% Waste Management, Inc. 7%, 10/1/04...... Ba 500 507,629 Waste Management, Inc. 6.125%, 7/15/11(c).............................. Ba 750 748,655 ----------- 1,256,284 ----------- WATER UTILITIES--2.5% Marlin Water Trust 144A 7.09%, 12/15/01(b)............................. Baa 1,550 1,563,707 ------------------------------------------------------------------------ TOTAL CORPORATE BONDS (IDENTIFIED COST $25,610,102) 24,676,686 ------------------------------------------------------------------------ NON-AGENCY MORTGAGE-BACKED SECURITIES--5.9% COMM Mortgage Trust 00-C1, A1 7.206%, 9/15/08................................. AAA(d) 704 740,099 DLJ Commercial Mortgage Corp. 98-CG1, A1A 6.11%, 12/10/07..................... AAA(d) 1,207 1,224,711 First Union - Lehman Brothers - Bank of America 98-C2, A2 6.56%, 11/18/08....... Aaa 1,165 1,194,737 G.E. Capital Mortgage Services, Inc. 94-21, B1 6.50%, 8/25/09................ A 24 24,424 Lehman ABS Corp. 94-C2, A 8.145%, 11/2/07................................. BBB+(d) 58 53,486 Saxon Asset Securities Trust 00-1, AF3 7.755%, 10/25/20........................ Aaa 425 442,677 ------------------------------------------------------------------------ TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $3,602,648) 3,680,134 ------------------------------------------------------------------------
See Notes to Financial Statements 5 Phoenix-Seneca Bond Fund
PAR MOODY'S VALUE RATING (000) VALUE -------- ------- ----------- FOREIGN GOVERNMENT SECURITIES--1.9% MEXICO--1.9% United Mexican States 8.375% 1/14/11.... Baa $ 1,200 $ 1,183,500 ------------------------------------------------------------------------ TOTAL FOREIGN GOVERNMENT SECURITIES (IDENTIFIED COST $1,164,261) 1,183,500 ------------------------------------------------------------------------ FOREIGN CORPORATE BONDS--4.5% BERMUDA--0.5% Global Crossing Holdings Ltd. 9.125%, 11/15/06................................ Ba 300 284,250 CANADA--1.3% Rogers Cantel, Inc. 9.375%, 6/1/08...... Baa 750 781,875 MEXICO--1.6% Pemex Finance Ltd. 6.30%, 5/15/10....... Aaa 500 483,695 Pemex Finance Ltd. 10.61%, 8/15/17...... Baa 450 543,245 ----------- 1,026,940 ----------- UNITED KINGDOM--1.1% Abbey National PLC 7.35%, 10/29/49(c)... Aa 100 99,413 Credit Suisse Group 144A 7.90%, 5/29/49(b)(c)........................... A 350 346,678 Terra Nova (U.K.) Holdings 7.20%, 8/15/07................................. Baa 250 239,041 ----------- 685,132 ----------- ------------------------------------------------------------------------ TOTAL FOREIGN CORPORATE BONDS (IDENTIFIED COST $2,829,219) 2,778,197 ------------------------------------------------------------------------ SHARES ------- PREFERRED STOCKS--2.1% BANKS (MAJOR REGIONAL)--0.4% First Republic Bank Series A Pfd. 144A 10.50%(b)............................... 3,000 263,250 TELEPHONE--1.7% Broadwing Communications, Inc. Pfd. Series B 12.50%......................... 10,500 1,081,500 ------------------------------------------------------------------------ TOTAL PREFERRED STOCKS (IDENTIFIED COST $1,450,375) 1,344,750 ------------------------------------------------------------------------ SHARES VALUE ------- ----------- CONVERTIBLE PREFERRED STOCKS--2.4% ELECTRIC COMPANIES--2.2% Duke Energy Corp. Cv. Pfd. 8.25%........ 49,000 $ 1,335,250 REITS--0.1% Equity Office Properties Trust Series B Cv. Pfd. 144A 5.25%(b).................. 2,000 83,000 SERVICES (COMMERCIAL & CONSUMER)--0.1% United Rentals, Inc. Trust I Cv. Pfd. 144A 6.50%(b)........................... 2,000 51,000 ------------------------------------------------------------------------ TOTAL CONVERTIBLE PREFERRED STOCKS (IDENTIFIED COST $1,425,000) 1,469,250 ------------------------------------------------------------------------ TOTAL LONG-TERM INVESTMENTS--88.1% (IDENTIFIED COST $55,402,703) 54,653,662 ------------------------------------------------------------------------ PAR VALUE (000) ------- SHORT-TERM OBLIGATIONS--11.0% FEDERAL AGENCY SECURITIES--10.8% Freddie Mac 5%, 4/2/01.................. $ 6,700 6,700,000 REPURCHASE AGREEMENT--0.2% State Street Bank & Trust Co. repurchase agreement, 3% dated 3/30/01 due 4/2/01, repurchase price $101,025 collateralized by U.S. Treasury Bond 8%, 11/15/21, market value $105,049................... 101 101,000 ------------------------------------------------------------------------ TOTAL SHORT-TERM OBLIGATIONS (IDENTIFIED COST $6,800,070) 6,801,000 ------------------------------------------------------------------------
TOTAL INVESTMENTS--99.1% (IDENTIFIED COST $62,202,773) 61,454,662(a) Other assets and liabilities, net--0.9% 532,002 ----------- NET ASSETS--100.0% $61,986,664 ===========
(a) Federal Income Tax Information: Net unrealized depreciation of investment securities is comprised of gross appreciation of $1,021,522 and gross depreciation of $1,769,700 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $62,202,840. (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 March 31, 2001, these securities amounted to a value of $3,653,335 or 5.9% of net assets. (c) Variable or step coupon security; interest rate shown reflects the rate currently in effect. (d) As rated by Standard & Poor's, Fitch or Duff & Phelps. (e) All or a portion segregated as collateral for a TBA security. 6 See Notes to Financial Statements Phoenix-Seneca Bond Fund STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 2001 (UNAUDITED) ASSETS Investment securities at value (Identified cost $62,202,773) $ 61,454,662 Cash 409,340 Receivables Interest 740,826 Investment securities sold 400,487 Fund shares sold 18,403 Prepaid expenses 84 -------------- Total assets 63,023,802 -------------- LIABILITIES Payables Investment securities purchased 883,989 Fund shares repurchased 32,447 Distribution fee 24,167 Investment advisory fee 21,075 Transfer agent fee 12,257 Financial agent fee 6,672 Trustees' fee 5,961 Accrued expenses 50,570 -------------- Total liabilities 1,037,138 -------------- NET ASSETS $ 61,986,664 ============== NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $ 61,680,515 Undistributed net investment income 424,988 Accumulated net realized gain 629,272 Net unrealized depreciation (748,111) -------------- NET ASSETS $ 61,986,664 ============== CLASS X Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $42,140,925) 4,029,004 Net asset value and offering price per share $10.46 CLASS A Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $11,588,695) 1,114,353 Net asset value per share $10.40 Offering price per share $10.40/(1-4.75%) $10.92 CLASS B Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $5,199,522) 504,530 Net asset value and offering price per share $10.31 CLASS C Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $3,057,522) 296,227 Net asset value and offering price per share $10.32
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 2001 (UNAUDITED) INVESTMENT INCOME Interest $ 2,179,184 Dividends 87,250 -------------- Total investment income 2,266,434 -------------- EXPENSES Investment advisory fee 141,377 Distribution fee, Class A 12,461 Distribution fee, Class B 19,310 Distribution fee, Class C 12,044 Financial agent fee 36,706 Transfer agent 38,706 Registration 16,588 Professional 10,644 Custodian 9,204 Printing 7,650 Trustees 6,144 Amortization of deferred organization expenses 2,840 Miscellaneous 6,056 -------------- Total expenses 319,730 Less expenses borne by investment adviser (29,732) Custodian fees paid indirectly (3,735) -------------- Net expenses 286,263 -------------- NET INVESTMENT INCOME 1,980,171 -------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain on securities 815,132 Net change in unrealized appreciation (depreciation) on investments 944,050 -------------- NET GAIN ON INVESTMENTS 1,759,182 -------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 3,739,353 ==============
See Notes to Financial Statements 7 Phoenix-Seneca Bond Fund STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended 3/31/01 Year Ended (Unaudited) 9/30/00 ----------- ----------- FROM OPERATIONS Net investment income (loss) $ 1,980,171 $ 3,356,304 Net realized gain (loss) 815,132 (177,909) Net change in unrealized appreciation (depreciation) 944,050 (504,232) ----------- ----------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 3,739,353 2,674,163 ----------- ----------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class X (1,477,083) (2,515,070) Net investment income, Class A (369,894) (292,804) Net investment income, Class B (137,192) (164,557) Net investment income, Class C (87,410) (86,111) Net realized gains, Class X -- (234,671) Net realized gains, Class A -- (20,533) Net realized gains, Class B -- (18,242) Net realized gains, Class C -- (7,732) ----------- ----------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (2,071,579) (3,339,720) ----------- ----------- FROM SHARE TRANSACTIONS CLASS X Proceeds from sales of shares (501,890 and 713,599 shares, respectively) 5,163,438 7,223,007 Net asset value of shares issued from reinvestment of distributions (141,298 and 267,292 shares, respectively) 1,446,176 2,688,008 Cost of shares repurchased (551,100 and 412,686 shares, respectively) (5,625,597) (4,171,320) ----------- ----------- Total 984,017 5,739,695 ----------- ----------- CLASS A Proceeds from sales of shares (485,933 and 565,362 shares, respectively) 4,929,184 5,655,310 Net asset value of shares issued from reinvestment of distributions (21,200 and 24,149 shares, respectively) 215,879 241,471 Cost of shares repurchased (118,514 and 129,252 shares, respectively) (1,212,839) (1,301,813) ----------- ----------- Total 3,932,224 4,594,968 ----------- ----------- CLASS B Proceeds from sales of shares (220,437 and 205,347 shares, respectively) 2,245,368 2,071,941 Net asset value of shares issued from reinvestment of distributions (5,236 and 6,271 shares, respectively) 53,022 62,389 Cost of shares repurchased (28,524 and 59,449 shares, respectively) (290,636) (590,669) ----------- ----------- Total 2,007,754 1,543,661 ----------- ----------- CLASS C Proceeds from sales of shares (133,349 and 174,940 shares, respectively) 1,356,285 1,761,161 Net asset value of shares issued from reinvestment of distributions (5,675 and 7,493 shares, respectively) 57,509 74,661 Cost of shares repurchased (37,389 and 31,077 shares, respectively) (378,009) (311,354) ----------- ----------- Total 1,035,785 1,524,468 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 7,959,780 13,402,792 ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS 9,627,554 12,737,235 NET ASSETS Beginning of period 52,359,110 39,621,875 ----------- ----------- END OF PERIOD [INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) OF $424,988 AND $516,396, RESPECTIVELY] $61,986,664 $52,359,110 =========== ===========
8 See Notes to Financial Statements Phoenix-Seneca Bond Fund FINANCIAL HIGHLIGHTS (SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS X ----------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, 3/31/01 ---------------------------------------------------------- (UNAUDITED) 2000 1999 1998 1997 Net asset value, beginning of period $ 10.16 $ 10.35 $ 10.68 $ 10.47 $ 10.09 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.37 0.77(1) 0.69(1) 0.56 0.62 Net realized and unrealized gain (loss) 0.31 (0.18) (0.31) 0.40 0.47 ------- -------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS 0.68 0.59 0.38 0.96 1.09 ------- -------- -------- -------- -------- LESS DISTRIBUTIONS: Dividends from net investment income (0.38) (0.71) (0.62) (0.57) (0.69) Dividends from net realized gains -- (0.07) (0.09) (0.18) (0.02) ------- -------- -------- -------- -------- TOTAL DISTRIBUTIONS (0.38) (0.78) (0.71) (0.75) (0.71) ------- -------- -------- -------- -------- Change in net asset value 0.30 (0.19) (0.33) 0.21 0.38 ------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 10.46 $ 10.16 $ 10.35 $ 10.68 $ 10.47 ======= ======== ======== ======== ======== Total return 6.83%(4) 6.17% 3.51% 9.44% 11.26% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $42,141 $39,981 $34,853 $26,455 $8,922 RATIO TO AVERAGE NET ASSETS OF: Operating expenses 0.84%(3)(9) 0.90%(5)(8) 1.06%(5)(7) 1.66% 1.53%(5) Net investment income (loss) 7.18%(3) 7.67% 6.60% 5.92% 6.31% Portfolio turnover 70%(4) 74% 95% 112% 99.68% CLASS X --------- FROM INCEPTION 3/7/96 TO 9/30/96 Net asset value, beginning of period $10.00 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.31 Net realized and unrealized gain (loss) 0.08 ------ TOTAL FROM INVESTMENT OPERATIONS 0.39 ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.30) Dividends from net realized gains -- ------ TOTAL DISTRIBUTIONS (0.30) ------ Change in net asset value 0.09 ------ NET ASSET VALUE, END OF PERIOD $10.09 ====== Total return 4.02%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $3,927 RATIO TO AVERAGE NET ASSETS OF: Operating expenses 0.56%(3)(5) Net investment income (loss) 7.54%(3) Portfolio turnover 52.82%(4)
CLASS A -------------------------------------------------------- SIX MONTHS YEAR ENDED FROM ENDED SEPTEMBER 30, INCEPTION 3/31/01 ------------------------ 7/1/98 TO (UNAUDITED) 2000 1999 9/30/98 Net asset value, beginning of period $ 10.11 $ 10.29 $ 10.68 $ 10.79 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)(1) 0.35 0.75 0.59 0.13 Net realized and unrealized gain (loss) 0.31 (0.18) (0.33) (0.07) ------- -------- -------- ------- TOTAL FROM INVESTMENT OPERATIONS 0.66 0.57 0.26 0.06 ------- -------- -------- ------- LESS DISTRIBUTIONS: Dividends from net investment income (0.37) (0.68) (0.56) (0.17) Dividends from net realized gains -- (0.07) (0.09) -- ------- -------- -------- ------- TOTAL DISTRIBUTIONS (0.37) (0.75) (0.65) (0.17) ------- -------- -------- ------- Change in net asset value 0.29 (0.18) (0.39) (0.11) ------- -------- -------- ------- NET ASSET VALUE, END OF PERIOD $ 10.40 $ 10.11 $ 10.29 $ 10.68 ======= ======== ======== ======= Total return(2) 6.69%(4) 5.84% 2.46% 0.53%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $11,589 $7,335 $2,732 $348 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(6) 1.15%(3)(9) 1.15%(8) 1.88%(7) 2.45%(3) Net investment income (loss) 6.85%(3) 7.60% 5.80% 5.17%(3) Portfolio turnover 70%(4) 74% 95% 112%(4)
(1) Computed using average shares outstanding. (2) Maximum sales charge is not reflected in total return calculation. (3) Annualized. (4) Not annualized. (5) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 1.00%, 1.13%, 3.41% and 9.31% for the periods ended September 30, 2000, 1999, 1997 and 1996, respectively. (6) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 1.29%, 1.81%, 4.08% and 8.99% for the periods ended March 31, 2001, September 30, 2000, 1999 and 1998, respectively. (7) For the periods ended September 30, 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. (8) For the year ended September 30, 2000, the ratio of operating expenses to average net assets includes the effect of expense offset for custodian fees, if expense offsets were excluded, the ratio would have been 0.91% and 1.16% for Class X and Class A, respectively. (9) For the six months ended March 31, 2001, the ratio of operating expenses to average net assets includes the effect of expense offset for custodian fees, if expense offsets were excluded, the ratio would have been 0.85% and 1.16% for Class X and Class A, respectively. See Notes to Financial Statements 9 Phoenix-Seneca Bond Fund FINANCIAL HIGHLIGHTS (SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS B ----------------------------------------------------------- SIX MONTHS YEAR ENDED FROM ENDED SEPTEMBER 30, INCEPTION 3/31/01 --------------------- 7/1/98 TO (UNAUDITED) 2000 1999 9/30/98 Net asset value, beginning of period $10.04 $10.27 $10.67 $10.79 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)(1) 0.30 0.68 0.52 0.11 Net realized and unrealized gain (loss) 0.33 (0.20) (0.33) (0.08) ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 0.63 0.48 0.19 0.03 ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.36) (0.64) (0.50) (0.15) Dividends from net realized gains -- (0.07) (0.09) -- ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.36) (0.71) (0.59) (0.15) ------ ------ ------ ------ Change in net asset value 0.27 (0.23) (0.40) (0.12) ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $10.31 $10.04 $10.27 $10.67 ====== ====== ====== ====== Total return(2) 6.36%(4) 5.06% 1.67% 0.28%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $5,200 $3,086 $1,593 $234 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(5) 1.90%(3)(8) 1.90%(8) 2.62%(7) 3.20%(3) Net investment income (loss) 6.10%(3) 6.83% 5.09% 4.42%(3) Portfolio turnover 70%(4) 74% 95% 112%(4)
CLASS C ----------------------------------------------------------- SIX MONTHS YEAR ENDED FROM ENDED SEPTEMBER 30, INCEPTION 3/31/01 --------------------- 7/1/98 TO (UNAUDITED) 2000 1999 9/30/98 Net asset value, beginning of period $10.06 $10.27 $10.67 $10.79 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)(1) 0.31 0.69 0.49 0.10 Net realized and unrealized gain (loss) 0.31 (0.20) (0.30) (0.07) ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 0.62 0.49 0.19 0.03 ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.36) (0.63) (0.50) (0.15) Dividends from net realized gains -- (0.07) (0.09) -- ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.36) (0.70) (0.59) (0.15) ------ ------ ------ ------ Change in net asset value 0.26 (0.21) (0.40) (0.12) ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $10.32 $10.06 $10.27 $10.67 ====== ====== ====== ====== Total return(2) 6.24%(4) 5.12% 1.66% 0.28%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $3,058 $1,957 $444 $439 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(6) 1.90%(3)(8) 1.90%(8) 2.91%(7) 3.20%(3) Net investment income (loss) 6.10%(3) 6.88% 4.71% 4.27%(3) Portfolio turnover 70%(4) 74% 95% 112%(4)
(1) Computed using average shares outstanding. (2) Maximum sales charge is not reflected in total return calculation. (3) Annualized. (4) Not annualized. (5) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 2.47%, 3.08%, 5.67% and 15.79% for the periods ended March 31, 2001, September 30, 2000, 1999 and 1998, respectively. (6) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 2.88%, 4.08%, 9.50% and 11.22% for the periods ended March 31, 2001, September 30, 2000, 1999 and 1998, respectively. (7) For the periods ended September 30, 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. (8) The ratio of operating expenses to average net assets includes the effect of expense offset for custodian fees, if expense offsets were excluded, the ratio would have been 1.91%. 10 See Notes to Financial Statements PHOENIX-SENECA MID-CAP 'EDGE"-SM- FUND INVESTMENTS AT MARCH 31, 2001 (UNAUDITED)
SHARES VALUE -------- ------------ COMMON STOCKS--87.6% AIRLINES--2.1% Southwest Airlines Co................... 150,885 $ 2,678,209 BEVERAGES (ALCOHOLIC)--3.0% Coors (Adolph) Co. Class B.............. 57,600 3,769,344 BIOTECHNOLOGY--2.4% IDEC Pharmaceuticals Corp.(b)........... 74,500 2,980,000 BROADCASTING (TELEVISION, RADIO & CABLE)--3.4% EchoStar Communications Corp. Class A(b).................................... 153,370 4,246,432 COMMUNICATIONS EQUIPMENT--2.2% McData Corp. Class B(b)................. 23,310 528,481 Scientific-Atlanta, Inc................. 54,670 2,273,725 ------------ 2,802,206 ------------ COMPUTERS (SOFTWARE & SERVICES)--2.8% BMC Software, Inc.(b)................... 59,960 1,289,140 Mercury Interactive Corp.(b)............ 30,690 1,285,144 Openwave Systems, Inc.(b)............... 44,520 883,277 ------------ 3,457,561 ------------ CONSUMER FINANCE--3.6% Capital One Financial Corp.............. 82,440 4,575,420 ELECTRIC COMPANIES--2.2% Mirant Corp.(b)......................... 76,760 2,724,980 ELECTRICAL EQUIPMENT--3.2% SPX Corp.(b)............................ 44,730 4,059,695 ELECTRONICS (INSTRUMENTATION)--5.7% PerkinElmer, Inc........................ 73,550 3,857,697 Waters Corp.(b)......................... 70,460 3,272,867 ------------ 7,130,564 ------------ ELECTRONICS (SEMICONDUCTORS)--3.1% Fairchild Semiconductor Corp. Class A(b).................................... 37,610 500,965 International Rectifier Corp.(b)........ 85,060 3,444,930 ------------ 3,945,895 ------------ SHARES VALUE -------- ------------ FOODS--4.1% Hershey Foods Corp...................... 74,630 $ 5,173,352 HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--6.8% Allergan, Inc........................... 48,910 3,626,676 Forest Laboratories, Inc.(b)............ 83,000 4,916,920 ------------ 8,543,596 ------------ HEALTH CARE (HOSPITAL MANAGEMENT)--4.1% Tenet Healthcare Corp.(b)............... 117,320 5,162,080 HEALTH CARE (SPECIALIZED SERVICES)--3.5% Laboratory Corporation of America Holdings(b)............................. 36,100 4,341,025 INSURANCE (PROPERTY-CASUALTY)--3.6% MGIC Investment Corp.................... 66,260 4,533,509 MANUFACTURING (DIVERSIFIED)--2.4% Thermo Electron Corp. (b)............... 135,120 3,037,498 METAL FABRICATORS--2.0% Shaw Group, Inc. (The)(b)............... 54,500 2,545,695 NATURAL GAS--6.1% Dynegy, Inc. Class A.................... 89,490 4,564,885 Kinder Morgan, Inc...................... 57,350 3,051,020 ------------ 7,615,905 ------------ OIL & GAS (DRILLING & EQUIPMENT)--9.3% Nabors Industries, Inc.(b).............. 79,320 4,111,949 Santa Fe International Corp............. 102,840 3,342,300 Weatherford International, Inc.(b)...... 84,980 4,193,763 ------------ 11,648,012 ------------ OIL & GAS (REFINING & MARKETING)--1.4% Valero Energy Corp...................... 49,450 1,755,475 RETAIL (SPECIALTY)--3.1% Bed Bath & Beyond, Inc.(b).............. 156,680 3,848,452 SERVICES (COMMERCIAL & CONSUMER)--5.6% Convergys Corp.(b)...................... 122,990 4,436,249 Crown Castle International Corp.(b)..... 176,620 2,616,184 ------------ 7,052,433 ------------
See Notes to Financial Statements 11 Phoenix-Seneca Mid-Cap 'EDGE"-SM- Fund
SHARES VALUE -------- ------------ TELECOMMUNICATIONS (CELLULAR/WIRELESS)--1.9% Nextel Partners, Inc. Class A(b)........ 80,930 $ 1,111,523 Powerwave Technologies, Inc.(b)......... 94,300 1,284,838 ------------ 2,396,361 ------------ -------------------------------------------------------------------- TOTAL COMMON STOCKS (IDENTIFIED COST $119,433,774) 110,023,699 -------------------------------------------------------------------- FOREIGN COMMON STOCKS--4.5% COMMUNICATIONS EQUIPMENT--0.9% NDS Group PLC ADR (United Kingdom)(b)... 28,450 1,102,438 INSURANCE (PROPERTY-CASUALTY)--3.6% ACE Ltd. (Bermuda)...................... 125,220 4,603,087 -------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $6,442,226) 5,705,525 -------------------------------------------------------------------- TOTAL LONG-TERM INVESTMENTS--92.1% (IDENTIFIED COST $125,876,000) 115,729,224 -------------------------------------------------------------------- PAR VALUE (000) VALUE -------- ------------ SHORT-TERM OBLIGATIONS--9.9% REPURCHASE AGREEMENT--9.9% State Street Bank & Trust Co. repurchase agreement 3%, dated 3/30/01 due 4/2/01, repurchase price $12,407,101 collateralized by U.S. Treasury Bond 8%, 11/15/21, market value $12,658,438...... $ 12,404 $ 12,404,000 -------------------------------------------------------------------- TOTAL SHORT-TERM OBLIGATIONS (IDENTIFIED COST $12,404,000) 12,404,000 --------------------------------------------------------------------
TOTAL INVESTMENTS--102.0% (IDENTIFIED COST $138,280,000) 128,133,224(a) Other assets and liabilities, net--(2.0%) (2,534,603) ------------ NET ASSETS--100.0% $125,598,621 ============
(a) Federal Income Tax Information: Net unrealized depreciation of investment securities is comprised of gross appreciation of $11,665,873 and gross depreciation of $21,812,649 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $138,280,000. (b) Non-income producing. 12 See Notes to Financial Statements Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 2001 (UNAUDITED) ASSETS Investment securities at value (Identified cost $138,280,000) $128,133,224 Cash 320 Receivables Fund shares sold 1,088,921 Dividends and interest 21,688 Prepaid expenses 41 ----------- Total assets 129,244,194 ----------- LIABILITIES Payables Investment securities purchased 3,227,691 Fund shares repurchased 72,027 Distribution fee 154,239 Investment advisory fee 84,854 Transfer agent fee 25,501 Financial agent fee 11,352 Trustees' fee 5,961 Accrued expenses 63,948 ----------- Total liabilities 3,645,573 ----------- NET ASSETS $125,598,621 =========== NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $148,446,667 Undistributed net investment loss (578,057) Accumulated net realized loss (12,123,213) Net unrealized depreciation (10,146,776) ----------- NET ASSETS $125,598,621 =========== CLASS X Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $17,362,934) 857,466 Net asset value and offering price per share $20.25 CLASS A Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $59,744,036) 2,999,958 Net asset value per share $19.91 Offering price per share $19.91/(1-5.75%) $21.12 CLASS B Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $21,859,448) 1,128,948 Net asset value and offering price per share $19.36 CLASS C Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $26,632,203) 1,375,949 Net asset value and offering price per share $19.36
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 2001 (UNAUDITED) INVESTMENT INCOME Interest $ 230,949 Dividends 132,014 ----------- Total investment income 362,963 ----------- EXPENSES Investment advisory fee 468,033 Distribution fee, Class A 68,605 Distribution fee, Class B 97,241 Distribution fee, Class C 115,860 Financial agent fee 65,924 Transfer agent 83,771 Registration 23,172 Professional 14,693 Custodian 7,333 Trustees 6,419 Printing 3,752 Amortization of deferred organization expenses 2,840 Miscellaneous 4,329 ----------- Total expenses 961,972 Less expenses borne by investment adviser (20,952) ----------- Net expenses 941,020 ----------- NET INVESTMENT LOSS (578,057) ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized loss on securities (12,168,071) Net change in unrealized appreciation (depreciation) on investments (26,611,562) ----------- NET LOSS ON INVESTMENTS (38,779,633) ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(39,357,690) ===========
See Notes to Financial Statements 13 Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended 3/31/01 Year Ended (Unaudited) 9/30/00 ------------ ------------ FROM OPERATIONS Net investment income (loss) $ (578,057) $ (584,583) Net realized gain (loss) (12,168,071) 11,930,154 Net change in unrealized appreciation (depreciation) (26,611,562) 14,274,036 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (39,357,690) 25,619,607 ------------ ------------ FROM DISTRIBUTIONS TO SHAREHOLDERS Net realized gains, Class X (1,779,451) (1,167,783) Net realized gains, Class A (5,053,180) (936,318) Net realized gains, Class B (1,800,251) (259,770) Net realized gains, Class C (2,144,115) (178,774) ------------ ------------ DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (10,776,997) (2,542,645) ------------ ------------ FROM SHARE TRANSACTIONS CLASS X Proceeds from sales of shares (102,044 and 215,085 shares, respectively) 2,596,639 6,295,346 Net asset value of shares issued from reinvestment of distributions (74,271 and 53,135 shares, respectively) 1,683,726 1,166,309 Cost of shares repurchased (57,018 and 128,414 shares, respectively) (1,518,365) (3,156,577) ------------ ------------ Total 2,762,000 4,305,078 ------------ ------------ CLASS A Proceeds from sales of shares (1,716,789 and 1,409,154 shares, respectively) 41,123,793 37,895,379 Net asset value of shares issued from reinvestment of distributions (136,067 and 38,209 shares, respectively) 3,035,674 828,380 Cost of shares repurchased (484,061 and 183,022 shares, respectively) (11,043,975) (4,980,455) ------------ ------------ Total 33,115,492 33,743,304 ------------ ------------ CLASS B Proceeds from sales of shares (599,964 and 449,699 shares, respectively) 14,306,962 12,356,353 Net asset value of shares issued from reinvestment of distributions (69,791 and 7,356 shares, respectively) 1,517,258 157,058 Cost of shares repurchased (68,554 and 25,588 shares, respectively) (1,539,175) (698,730) ------------ ------------ Total 14,285,045 11,814,681 ------------ ------------ CLASS C Proceeds from sales of shares (780,951 and 561,111 shares, respectively) 18,739,893 14,900,356 Net asset value of shares issued from reinvestment of distributions (86,708 and 6,695 shares, respectively) 1,884,167 142,940 Cost of shares repurchased (97,397 and 18,146 shares, respectively) (2,316,701) (467,593) ------------ ------------ Total 18,307,359 14,575,703 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 68,469,896 64,438,766 ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS 18,335,209 87,515,728 NET ASSETS Beginning of period 107,263,412 19,747,684 ------------ ------------ END OF PERIOD [INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) OF $(578,057) AND $0, RESPECTIVELY] $125,598,621 $107,263,412 ============ ============
14 See Notes to Financial Statements Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund FINANCIAL HIGHLIGHTS (SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS X --------------------------------------------------------------------------- SIX MONTHS FROM ENDED YEAR ENDED SEPTEMBER 30, INCEPTION 3/31/01 -------------------------------------------- 3/8/96 TO (UNAUDITED) 2000 1999 1998 1997 9/30/96 Net asset value, beginning of period $ 31.18 $ 17.78 $ 13.81 $ 16.47 $ 14.97 $10.00 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (0.08) (0.19)(1) (0.21)(1) (0.23)(1) (0.17) 0.01 Net realized and unrealized gain (loss) (8.42) 15.65 4.72 (0.58) 1.84 4.96 ------- -------- -------- -------- -------- ------ TOTAL FROM INVESTMENT OPERATIONS (8.50) 15.46 4.51 (0.81) 1.67 4.97 ------- -------- -------- -------- -------- ------ LESS DISTRIBUTIONS: Dividends from net investment income -- -- -- -- (0.07) -- Dividends from net realized gains (2.43) (2.06) (0.54) (1.85) (0.10) -- ------- -------- -------- -------- -------- ------ TOTAL DISTRIBUTIONS (2.43) (2.06) (0.54) (1.85) (0.17) -- ------- -------- -------- -------- -------- ------ Change in net asset value (10.93) 13.40 3.97 (2.66) 1.50 4.97 ------- -------- -------- -------- -------- ------ NET ASSET VALUE, END OF PERIOD $ 20.25 $ 31.18 $ 17.78 $ 13.81 $ 16.47 $14.97 ======= ======== ======== ======== ======== ====== Total return (28.09)%(4) 91.81% 33.02% (4.22)% 11.39% 49.70%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $17,363 $23,016 $10,640 $8,940 $9,390 $7,428 RATIO TO AVERAGE NET ASSETS OF: Operating expenses 1.15%(3)(5) 1.27%(5) 1.96% 2.10%(5) 1.74%(5) 0.90%(3)(5) Net investment income (loss) (0.54)%(3) (0.72)% (1.27)% (1.49)% (0.97)% 0.27%(3) Portfolio turnover 21%(4) 124% 192% 206% 283.60% 72.34%(4)
CLASS A --------------------------------------------------------------------------- SIX MONTHS FROM ENDED YEAR ENDED SEPTEMBER 30, INCEPTION 3/31/01 -------------------------------------------- 3/8/96 TO (UNAUDITED) 2000 1999 1998 1997 9/30/96 Net asset value, beginning of period $ 30.75 $ 17.60 $ 13.75 $ 16.49 $ 14.94 $10.00 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (0.07) (0.24)(1) (0.31)(1) (0.30)(1) (0.25) (0.01) Net realized and unrealized gain (loss) (8.34) 15.45 4.70 (0.59) 1.90 4.95 ------- -------- -------- -------- -------- ------ TOTAL FROM INVESTMENT OPERATIONS (8.41) 15.21 4.39 (0.89) 1.65 4.94 ------- -------- -------- -------- -------- ------ LESS DISTRIBUTIONS: Dividends from net investment income -- -- -- -- -- -- Dividends from net realized gains (2.43) (2.06) (0.54) (1.85) (0.10) -- ------- -------- -------- -------- -------- ------ TOTAL DISTRIBUTIONS (2.43) (2.06) (0.54) (1.85) (0.10) -- ------- -------- -------- -------- -------- ------ Change in net asset value (10.84) 13.15 3.85 (2.74) 1.55 4.94 ------- -------- -------- -------- -------- ------ NET ASSET VALUE, END OF PERIOD $ 19.91 $ 30.75 $ 17.60 $ 13.75 $ 16.49 $14.94 ======= ======== ======== ======== ======== ====== Total return(2) (28.16)%(4) 91.30% 32.27% (4.74)% 11.25% 49.30%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $59,744 $50,150 $6,457 $3,666 $2,419 $1,355 RATIO TO AVERAGE NET ASSETS OF: Operating expenses 1.35%(3) 1.47%(6) 2.51% 2.70%(6) 2.37%(6) 1.55%(3)(6) Net investment income (loss) (0.73)%(3) (0.91)% (1.81)% (1.95)% (1.60)% (0.46)%(3) Portfolio turnover 21%(4) 124% 192% 206% 283.60% 72.34%(4)
(1) Computed using average shares outstanding. (2) Maximum sales charge is not reflected in total return calculation. (3) Annualized. (4) Not annualized. (5) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 1.19%, 1.43%, 2.38%, 2.77% and 5.73% for the periods ended March 31, 2001, September 30, 2000, 1998, 1997 and 1996, respectively. (6) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 1.59%, 2.74%, 4.32% and 9.73% for the periods ended September 30, 2000, 1998, 1997 and 1996, respectively. See Notes to Financial Statements 15 Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund FINANCIAL HIGHLIGHTS (SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS B ------------------------------------------------------------ SIX MONTHS YEAR ENDED FROM ENDED SEPTEMBER 30, INCEPTION 3/31/01 ---------------------- 7/1/98 TO (UNAUDITED) 2000 1999 9/30/98 Net asset value, beginning of period $ 30.09 $ 17.41 $13.73 $17.15 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (0.08) (0.45)(1) (0.47)(1) (0.09)(1) Net realized and unrealized gain (loss) (8.22) 15.19 4.69 (3.33) ------- ------- ------ ------ TOTAL FROM INVESTMENT OPERATIONS (8.30) 14.74 4.22 (3.42) ------- ------- ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income -- -- -- -- Dividends from net realized gains (2.43) (2.06) (0.54) -- ------- ------- ------ ------ TOTAL DISTRIBUTIONS (2.43) (2.06) (0.54) -- ------- ------- ------ ------ Change in net asset value (10.73) 12.68 3.68 (3.42) ------- ------- ------ ------ NET ASSET VALUE, END OF PERIOD $ 19.36 $ 30.09 $17.41 $13.73 ======= ======= ====== ====== Total return(2) (28.46)%(4) 89.49% 31.05% (19.94)%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $21,859 $15,879 $1,676 $145 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(5) 2.15%(3) 2.29% 3.45% 3.45%(3) Net investment income (loss) (1.53)%(3) (1.73)% (2.78)% (2.45)%(3) Portfolio turnover 21%(4) 124% 192% 206%(4)
CLASS C ------------------------------------------------------------ SIX MONTHS YEAR ENDED FROM ENDED SEPTEMBER 30, INCEPTION 3/31/01 ---------------------- 7/1/98 TO (UNAUDITED) 2000 1999 9/30/98 Net asset value, beginning of period $ 30.08 $ 17.40 $13.72 $17.15 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (0.08) (0.45)(1) (0.47)(1) (0.09)(1) Net realized and unrealized gain (loss) (8.21) 15.19 4.69 (3.34) ------- ------- ------ ------ TOTAL FROM INVESTMENT OPERATIONS (8.29) 14.74 4.22 (3.43) ------- ------- ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income -- -- -- -- Dividends from net realized gains (2.43) (2.06) (0.54) -- ------- ------- ------ ------ TOTAL DISTRIBUTIONS (2.43) (2.06) (0.54) -- ------- ------- ------ ------ Change in net asset value (10.72) 12.68 3.68 (3.43) ------- ------- ------ ------ NET ASSET VALUE, END OF PERIOD $ 19.36 $ 30.08 $17.40 $13.72 ======= ======= ====== ====== Total return(2) (28.44)%(4) 89.54% 31.07% (20.00)%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $26,632 $18,218 $975 $103 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(6) 2.15%(3) 2.25% 3.45% 3.45%(3) Net investment income (loss) (1.52)%(3) (1.68)% (2.78)% (2.44)%(3) Portfolio turnover 21%(4) 124% 192% 206%(4)
(1) Computed using average shares outstanding. (2) Maximum sales charge is not reflected in total return calculation. (3) Annualized. (4) Not annualized. (5) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 2.25%, 2.70%, 6.33% and 20.80% for the periods ended March 31, 2001, September 30, 2000, 1999 and 1998, respectively. (6) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 2.22%, 2.65%, 9.03% and 21.14% for the periods ended March 31, 2001, September 30, 2000, 1999 and 1998, respectively. 16 See Notes to Financial Statements PHOENIX-SENECA REAL ESTATE SECURITIES FUND INVESTMENTS AT MARCH 31, 2001 (UNAUDITED)
SHARES VALUE -------- ------------ COMMON STOCKS--79.8% REAL ESTATE INVESTMENT TRUSTS--69.5% DIVERSIFIED--8.3% iStar Financial, Inc.................... 40,200 $ 927,414 Vornado Realty Trust.................... 18,000 644,940 ------------ 1,572,354 ------------ INDUSTRIAL/OFFICE--18.7% MIXED--5.5% Bedford Property Investors, Inc......... 29,250 548,730 Reckson Associates Realty Corp.......... 22,250 496,175 ------------ 1,044,905 ------------ OFFICE--13.2% Arden Realty, Inc....................... 24,000 566,400 Equity Office Properties Trust.......... 30,445 852,460 Mack-Cali Realty Corp................... 40,100 1,082,700 ------------ 2,501,560 ------------ -------------------------------------------------------------------- TOTAL INDUSTRIAL/ OFFICE 3,546,465 -------------------------------------------------------------------- RESIDENTIAL--32.6% APARTMENTS--23.0% Archstone Communities Trust............. 40,046 985,132 Avalonbay Communities, Inc.............. 10,750 492,457 BRE Properties, Inc. Class A............ 5,000 144,950 Equity Residential Properties Trust..... 19,200 998,976 Essex Property Trust, Inc............... 17,750 852,888 Post Properties, Inc.................... 25,000 875,000 ------------ 4,349,403 ------------ MANUFACTURED HOMES--9.6% Chateau Communities, Inc................ 30,300 916,575 Manufactured Home Communities, Inc...... 33,200 896,400 ------------ 1,812,975 ------------ -------------------------------------------------------------------- TOTAL RESIDENTIAL 6,162,378 -------------------------------------------------------------------- SHARES VALUE -------- ------------ RETAIL--9.9% REGIONAL MALLS--9.9% Macerich Co. (The)...................... 43,400 $ 952,630 Simon Property Group, Inc............... 36,115 924,544 ------------ 1,877,174 ------------ -------------------------------------------------------------------- TOTAL REAL ESTATE INVESTMENT TRUSTS (IDENTIFIED COST $12,649,067) 13,158,371 -------------------------------------------------------------------- REAL ESTATE OPERATING COMPANIES--2.6% DIVERSIFIED--2.6% Northstar Capital Investment Corp.(b)(c)............................. 35,000 490,000 -------------------------------------------------------------------- TOTAL REAL ESTATE OPERATING COMPANIES (IDENTIFIED COST $720,625) 490,000 -------------------------------------------------------------------- BANKS (MAJOR REGIONAL)--2.3% Wells Fargo & Co. (Identified cost $395,448).............. 8,800 435,336 SAVINGS & LOAN COMPANIES--3.7% Bay View Capital Corp. (Identified cost $1,078,796)............ 146,600 694,884 TELECOMMUNICATIONS (LONG DISTANCE)--1.7% Allied Riser Communications Corp. (Identified cost $1,099,241)(b)......... 208,000 331,500 -------------------------------------------------------------------- TOTAL COMMON STOCKS (IDENTIFIED COST $15,943,177) 15,110,091 -------------------------------------------------------------------- CONVERTIBLE PREFERRED STOCKS--11.5% REAL ESTATE INVESTMENT TRUSTS--9.6% INDUSTRIAL/OFFICE--9.6% MIXED--4.4% Reckson Associates Realty Corp. Series A Cv. Pfd. 7.625%......................... 39,000 838,500
See Notes to Financial Statements 17 Phoenix-Seneca Real Estate Securities Fund
SHARES VALUE -------- ------------ OFFICE--5.2% Glenborough Realty Trust, Inc. Series A Cv. Pfd. 7.75%.......................... 50,950 $ 985,882 -------------------------------------------------------------------- TOTAL INDUSTRIAL/ OFFICE 1,824,382 -------------------------------------------------------------------- TOTAL REAL ESTATE INVESTMENT TRUSTS (IDENTIFIED COST $1,864,227) 1,824,382 -------------------------------------------------------------------- ELECTRIC COMPANIES--1.9% Duke Energy Corp. Cv. Pfd. 8.25% (Identified Cost $325,250).............. 13,000 354,250 -------------------------------------------------------------------- TOTAL CONVERTIBLE PREFERRED STOCKS (IDENTIFIED COST $2,189,477) 2,178,632 -------------------------------------------------------------------- PAR VALUE (000) -------- SHORT-TERM OBLIGATIONS--9.2% REPURCHASE AGREEMENT--9.2% State Street Bank & Trust Co. repurchase agreement 3%, dated 3/30/01 due 4/2/01, repurchase price $1,748,437 collateralized by U.S. Treasury Bond 8%, 11/15/21, market value $1,785,838....... $ 1,748 1,748,000 -------------------------------------------------------------------- TOTAL SHORT-TERM OBLIGATIONS (IDENTIFIED COST $1,748,000) 1,748,000 --------------------------------------------------------------------
TOTAL INVESTMENTS --100.5% (IDENTIFIED COST $19,880,654) 19,036,723(a) Other assets and liabilities, net--(0.5%) (99,629) ------------ NET ASSETS--100.0% $ 18,937,094 ============
(a) Federal Income Tax Information: Net unrealized depreciation of investment securities is comprised of gross appreciation of $1,325,297 and gross depreciation of $2,115,306 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $19,826,732. (b) Non-income producing. (c) Private placement. Security valued at fair value as determined in good faith by or under the direction of the Trustees. 18 See Notes to Financial Statements Phoenix-Seneca Real Estate Securities Fund STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 2001 (UNAUDITED) ASSETS Investment securities at value, (Identified cost $19,880,654) $19,036,723 Cash 916 Receivables Dividends and interest 149,333 Fund shares sold 4,695 Prepaid expenses 58 ----------- Total assets 19,191,725 ----------- LIABILITIES Payables Investment securities purchased 146,250 Fund shares repurchased 30,298 Registration 16,481 Professional 14,038 Transfer agent fee 10,631 Investment advisory fee 9,531 Trustees' fee 5,961 Financial agent fee 4,220 Distribution fee 2,956 Accrued expenses 14,265 ----------- Total liabilities 254,631 ----------- NET ASSETS $18,937,094 =========== NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $21,253,751 Undistributed net investment income 166,314 Accumulated net realized loss (1,639,040) Net unrealized depreciation (843,931) ----------- NET ASSETS $18,937,094 =========== CLASS X Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $16,317,836) 1,401,189 Net asset value and offering price per share $11.65 CLASS A Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $1,834,802) 160,891 Net asset value per share $11.40 Offering price per share $11.40/(1-5.75%) $12.10 CLASS B Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $397,094) 34,882 Net asset value and offering price per share $11.38 CLASS C Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $387,362) 34,035 Net asset value and offering price per share $11.38
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 2001 (UNAUDITED) INVESTMENT INCOME Dividends $ 580,159 Interest 27,767 ----------- Total investment income 607,926 ----------- EXPENSES Investment advisory fee 79,244 Distribution fee, Class A 2,090 Distribution fee, Class B 1,665 Distribution fee, Class C 1,661 Financial agent fee 25,510 Transfer agent 36,910 Registration 20,066 Professional 10,394 Trustees 8,144 Printing 4,720 Amortization of deferred organization expenses 2,840 Custodian 3,447 Miscellaneous 4,101 ----------- Total expenses 200,792 Less expenses borne by investment adviser (27,249) ----------- Net expenses 173,543 ----------- NET INVESTMENT INCOME 434,383 ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain on securities 818,708 Net change in unrealized appreciation (depreciation) on investments (1,379,413) ----------- NET LOSS ON INVESTMENTS (560,705) ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (126,322) ===========
See Notes to Financial Statements 19 Phoenix-Seneca Real Estate Securities Fund STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended 3/31/01 Year Ended (Unaudited) 9/30/00 ----------- -------------- FROM OPERATIONS Net investment income (loss) $ 434,383 $ 558,230 Net realized gain (loss) 818,708 (1,794,018) Net change in unrealized appreciation (depreciation) (1,379,413) 5,626,649 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (126,322) 4,390,861 ----------- ----------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class X (245,047) (729,733) Net investment income, Class A (17,650) (39,774) Net investment income, Class B (2,746) (4,505) Net investment income, Class C (2,626) (6,833) In excess of net investment income, Class X -- (23,313) In excess of net investment income, Class A -- (1,271) In excess of net investment income, Class B -- (144) In excess of net investment income, Class C -- (218) ----------- ----------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (268,069) (805,791) ----------- ----------- FROM SHARE TRANSACTIONS CLASS X Proceeds from sales of shares (115,861 and 57,569 shares, respectively) 1,366,384 568,135 Net asset value of shares issued from reinvestment of distributions (20,571 and 77,067 shares, respectively) 239,713 737,936 Cost of shares repurchased (141,145 and 518,701 shares, respectively) (1,664,971) (5,199,801) ----------- ----------- Total (58,874) (3,893,730) ----------- ----------- CLASS A Proceeds from sales of shares (74,523 and 70,000 shares, respectively) 864,262 713,131 Net asset value of shares issued from reinvestment of distributions (1,247 and 4,054 shares, respectively) 14,243 37,795 Cost of shares repurchased (38,037 and 47,145 shares, respectively) (439,094) (460,947) ----------- ----------- Total 439,411 289,979 ----------- ----------- CLASS B Proceeds from sales of shares (12,554 and 13,355 shares, respectively) 144,867 133,190 Net asset value of shares issued from reinvestment of distributions (241 and 492 shares, respectively) 2,747 4,648 Cost of shares repurchased (2,522 and 9,914 shares, respectively) (29,070) (91,088) ----------- ----------- Total 118,544 46,750 ----------- ----------- CLASS C Proceeds from sales of shares (10,923 and 7,999 shares, respectively) 125,942 85,428 Net asset value of shares issued from reinvestment of distributions (185 and 687 shares, respectively) 2,118 6,383 Cost of shares repurchased (5,335 and 1,379 shares, respectively) (62,420) (15,139) ----------- ----------- Total 65,640 76,672 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 564,721 (3,480,329) ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS 170,330 104,741 NET ASSETS Beginning of period 18,766,764 18,662,023 ----------- ----------- END OF PERIOD [INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) OF $166,314 AND $0, RESPECTIVELY] $18,937,094 $18,766,764 =========== ===========
20 See Notes to Financial Statements Phoenix-Seneca Real Estate Securities Fund FINANCIAL HIGHLIGHTS (SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS X --------------------------------------------------------------------------- SIX MONTHS FROM ENDED YEAR ENDED SEPTEMBER 30, INCEPTION 3/31/01 -------------------------------------------- 3/12/96 TO (UNAUDITED) 2000 1999 1998 1997 9/30/96 Net asset value, beginning of period $ 11.89 $ 9.69 $ 11.11 $ 14.71 $ 11.10 $ 10.00 INCOME FROM INVESTMENT OPERATIONS Net investment income (loss) 0.28(1) 0.34(1) 0.47(1) 0.54 0.13 0.13 Net realized and unrealized gain (loss) (0.35) 2.35 (1.20) (3.10) 3.77 1.10 ------- -------- -------- -------- -------- ------- TOTAL FROM INVESTMENT OPERATIONS (0.07) 2.69 (0.73) (2.56) 3.90 1.23 ------- -------- -------- -------- -------- ------- LESS DISTRIBUTIONS Dividends from net investment income (0.17) (0.47) (0.44) (0.46) (0.28) (0.13) Dividends from net realized gains -- -- (0.25) (0.58) (0.01) -- In excess of net investment income -- (0.02) -- -- -- -- ------- -------- -------- -------- -------- ------- TOTAL DISTRIBUTIONS (0.17) (0.49) (0.69) (1.04) (0.29) (0.13) ------- -------- -------- -------- -------- ------- Change in net asset value (0.24) 2.20 (1.42) (3.60) 3.61 1.10 ------- -------- -------- -------- -------- ------- NET ASSET VALUE, END OF PERIOD $ 11.65 $ 11.89 $ 9.69 $ 11.11 $ 14.71 $ 11.10 ======= ======== ======== ======== ======== ======= Total return (0.55)%(4) 29.00% (6.66)% (18.33)% 35.44% 12.39%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $16,318 $16,713 $17,346 $21,794 $28,193 $1,073 RATIO TO AVERAGE NET ASSETS OF: Operating expenses 1.66%(3) 1.79% 1.66% 1.47% 1.99%(5) 1.00%(3)(5) Net investment income (loss) 4.85%(3) 3.35% 4.50% 4.14% 2.38% 4.39%(3) Portfolio turnover 19%(4) 65% 5% 53% 75.68% 30.70%(4)
CLASS A --------------------------------------------------------------------------- SIX MONTHS FROM ENDED YEAR ENDED SEPTEMBER 30, INCEPTION 3/31/01 -------------------------------------------- 3/12/96 TO (UNAUDITED) 2000 1999 1998 1997 9/30/96 Net asset value, beginning of period $ 11.67 $ 9.54 $ 11.00 $ 14.68 $ 11.08 $ 10.00 INCOME FROM INVESTMENT OPERATIONS Net investment income (loss) 0.20(1) 0.21(1) 0.32(1) 0.35 0.03 0.13 Net realized and unrealized gain (loss) (0.35) 2.30 (1.19) (3.08) 3.78 1.08 ------- -------- -------- -------- -------- ------- TOTAL FROM INVESTMENT OPERATIONS (0.15) 2.51 (0.87) (2.73) 3.81 1.21 ------- -------- -------- -------- -------- ------- LESS DISTRIBUTIONS Dividends from net investment income (0.12) (0.37) (0.34) (0.37) (0.20) (0.13) Dividends from net realized gains -- -- (0.25) (0.58) (0.01) -- In excess of net investment income -- (0.01) -- -- -- -- ------- -------- -------- -------- -------- ------- TOTAL DISTRIBUTIONS (0.12) (0.38) (0.59) (0.95) (0.21) (0.13) ------- -------- -------- -------- -------- ------- Change in net asset value (0.27) 2.13 (1.46) (3.68) 3.60 1.08 ------- -------- -------- -------- -------- ------- NET ASSET VALUE, END OF PERIOD $ 11.40 $ 11.67 $ 9.54 $ 11.00 $ 14.68 $ 11.08 ======= ======== ======== ======== ======== ======= Total return(2) (1.29)%(4) 27.40% (7.97)% (19.52)% 34.54% 12.22%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $1,835 $1,437 $919 $1,357 $3,176 $222 RATIO TO AVERAGE NET ASSETS OF: Operating expenses 3.05%(3)(6) 3.05%(6) 3.05%(6) 2.76% 2.91%(6) 1.65%(3)(6) Net investment income (loss) 3.52%(3) 2.11% 3.13% 2.45% 1.37% 4.61%(3) Portfolio turnover 19%(4) 65% 5% 53% 75.68% 30.70%(4)
(1) Computed using average shares outstanding. (2) Maximum sales charge is not reflected in total return calculation. (3) Annualized. (4) Not annualized. (5) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 1.99% and 53.04% for the periods ended September 30, 1997 and 1996, respectively. (6) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 3.44%, 4.28%, 4.27%, 3.79% and 73.01% for the periods ended March 31, 2001, September 30, 2000, 1999, 1997 and 1996, respectively. See Notes to Financial Statements 21 Phoenix-Seneca Real Estate Securities Fund FINANCIAL HIGHLIGHTS (SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS B ----------------------------------------------------------- SIX MONTHS YEAR ENDED FROM ENDED SEPTEMBER 30, INCEPTION 3/31/01 --------------------- 7/1/98 TO (UNAUDITED) 2000 1999 9/30/98 Net asset value, beginning of period $11.66 $ 9.55 $11.01 $12.58 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.17(1) 0.12(1) 0.29(1) 0.07 Net realized and unrealized gain (0.36) 2.31 (1.22) (1.58) ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS (0.19) 2.43 (0.93) (1.51) ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.09) (0.31) (0.28) (0.06) Dividends from net realized gains -- -- (0.25) -- In excess of net investment income -- (0.01) -- -- ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.09) (0.32) (0.53) (0.06) ------ ------ ------ ------ Change in net asset value (0.28) 2.11 (1.46) (1.57) ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $11.38 $11.66 $ 9.55 $11.01 ====== ====== ====== ====== Total return(2) (1.56)%(4) 26.37% (8.59)% (11.97)%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $397 $287 $197 $91 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(5) 3.80%(3) 3.80% 3.80% 3.80%(3) Net investment income (loss) 2.93%(3) 1.19% 2.79% 2.50%(3) Portfolio turnover 19%(4) 65% 5% 53%(4)
CLASS C --------------------------------------- SIX MONTHS YEAR ENDED FROM ENDED SEPTEMBER 30, INCEPTION 3/31/01 --------------------- 7/1/98 TO (UNAUDITED) 2000 1999 9/30/98 Net asset value, beginning of period $11.66 $ 9.55 $11.01 $ 12.58 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.16(1) 0.14(1) 0.29(1) 0.07 Net realized and unrealized gain (0.35) 2.29 (1.22) (1.58) ------ ------ ------ ------- TOTAL FROM INVESTMENT OPERATIONS (0.19) 2.43 (0.93) (1.51) ------ ------ ------ ------- LESS DISTRIBUTIONS: Dividends from net investment income (0.09) (0.31) (0.28) (0.06) Dividends from net realized gains -- -- (0.25) -- In excess of net investment income -- (0.01) -- -- ------ ------ ------ ------- TOTAL DISTRIBUTIONS (0.09) (0.32) (0.53) (0.06) ------ ------ ------ ------- Change in net asset value (0.28) 2.11 (1.46) (1.57) ------ ------ ------ ------- NET ASSET VALUE, END OF PERIOD $11.38 $11.66 $ 9.55 $ 11.01 ====== ====== ====== ======= Total return(2) (1.65)%(4) 26.37% (8.58)% (11.97)%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $387 $329 $200 $88 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(6) 3.80%(3) 3.80% 3.80% 3.80%(3) Net investment income (loss) 2.82%(3) 1.36% 2.80% 2.44%(3) Portfolio turnover 19%(4) 65% 5% 53%(4)
(1) Computed using average shares outstanding. (2) Maximum sales charge is not reflected in total return calculation. (3) Annualized. (4) Not annualized. (5) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 10.99%, 15.48%, 18.50% and 22.08% for the periods ended March 31, 2001, September 30, 2000, 1999 and 1998, respectively. (6) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 11.00%, 13.58%, 19.95% and 22.93% for the periods ended March 31, 2001, September 30, 2000, 1999 and 1998, respectively. 22 See Notes to Financial Statements PHOENIX-SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 2001 (UNAUDITED) 1. SIGNIFICANT ACCOUNTING POLICIES The Phoenix-Seneca Funds (the "Trust") is organized as a Delaware business trust and is registered under the Investment Company Act of 1940, as amended, as an open end management investment company. Shares of the Trust are divided into three series, each a "Fund" and collectively the "Funds" as follows: Phoenix-Seneca Bond Fund, Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund and Phoenix-Seneca Real Estate Securities Fund. Each Fund has distinct investment objectives. Bond Fund is a diversified Fund and seeks to generate a high level of current income and capital appreciation. Mid-Cap "EDGE"-SM- Fund is a diversified Fund and seeks to achieve long-term capital appreciation by investing primarily in a diversified portfolio of equity securities of companies with market capitalizations between $500 million and $5 billion. Real Estate Securities Fund is a non-diversified Fund and seeks to emphasize capital appreciation and income equally by investing primarily in marketable securities of publicly-traded real estate investment trusts (REITS) and companies that invest in, operate, develop and/or manage real estate located in the United States. Each Fund offers Class X, Class A, Class B and Class C shares. Class X shares are sold without a sales charge. Class A shares of Bond Fund are sold with a front-end sales charge of up to 4.75%. Class A shares of Mid-Cap "EDGE" Fund and Real Estate Securities Fund are sold with a front-end sales charge of up to 5.75%. 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 Class A, Class B and Class C shares bear distribution expenses and have exclusive voting rights with respect to their distribution plans. Investment income and realized and unrealized gains/losses are allocated among the classes on the basis of net assets of each class. The following is a summary of significant accounting policies consistently followed by the Trust 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: Equity securities are valued at the last sale price, or if there had been no sale that day, at the mean between the most recent high bid and the most recent low asked quotations. Debt securities are valued on the basis of broker quotations or valuations provided by a pricing service which utilizes information with respect to recent sales, market transactions in comparable securities, quotations from dealers and various relationships between securities in determining value. Short-term investments having a remaining maturity of 60 days or less are valued at amortized cost which approximates market. All other securities and assets are valued at their fair value as determined in good faith by or under the direction of the Trustees. B. SECURITY TRANSACTIONS AND RELATED INCOME: Security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, in the case of certain foreign securities, as soon as the Fund is notified. Interest income is recorded on the accrual basis. The Trust amortizes premiums and discounts using the effective interest method. Realized gains and losses are determined on the identified cost basis. In November 2000, a revised AICPA Audit and Accounting Guide, Audits of Investment Companies, was issued, and is effective for fiscal years beginning after December 15, 2000. The revised guide will require the Trust to classify gains and losses on mortgage-and asset-backed securities presently included in realized gains and losses, as part of interest income. Adopting these accounting principles will not affect the Trust's net asset value, but will change the classification of certain amounts between interest income and realized gain/loss in the Statement of Operations. The Trust expects that the impact of the adoption of these principles will not be material to the financial statements. C. INCOME TAXES: Each Fund is treated as a separate taxable entity. It is the policy of each Fund to comply with the requirements of the Internal Revenue Code (the "Code") applicable to regulated investment companies, and to distribute all of its taxable income to its shareholders. In addition, each 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 are recorded by each Fund on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences include the treatment of non-taxable dividends, market discount, organization costs, expiring capital loss carryforwards, foreign currency gain/loss, partnerships, operating losses 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. 23 PHOENIX-SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 2001 (UNAUDITED) (CONTINUED) 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 Trust 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. FORWARD CURRENCY CONTRACTS: Each Fund may enter into forward currency contracts in conjunction with the planned purchase or sale of foreign denominated securities in order to hedge the U.S. dollar cost or proceeds. Forward currency contracts involve, to varying degrees, elements of market risk in excess of the amount recognized in the statement of assets and liabilities. Risks arise from the possible movements in foreign exchange rates or if the counterparty does not perform under the contract. A forward currency contract involves an obligation to purchase or sell a specific currency at a future date, which may be any number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. These contracts are traded directly between currency traders and their customers. The contract is marked-to-market daily and the change in market value is recorded by each Fund as an unrealized gain (or loss). When the contract is closed or offset with the same counterparty, the Fund records a realized gain (or loss) equal to the change in the value of the contract when it was opened and the value at the time it was closed or offset. At March 31, 2001, the Trust had no forward currency contracts. G. OPTIONS: Each 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. Each 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. Each Fund may purchase options which are included in the Funds' 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. At March 31, 2001, the Trust had no options. H. ORGANIZATION EXPENSE: In 1996, the Trust incurred organizational expenses which are amortized on a straight line basis over a period of sixty months from the commencement of operations. If any of the initial shares are redeemed before the end of the amortization period, the proceeds of the redemption will be reduced by the pro rata share of unamortized organization expenses. I. EXPENSES: Trust expenses not directly attributable to a specific Fund are allocated evenly among all funds. Fund expenses that are not related to the distribution of shares of a particular class or to services provided specifically to a particular class are allocated among the classes on the basis of relative average daily net assets of each class. Expenses that relate to the distribution of shares or services provided to a particular class are allocated to that class. J. REPURCHASE AGREEMENTS: A repurchase agreement is a transaction where a Fund acquires a security for cash and obtains a simultaneous commitment from the seller to repurchase the security at an agreed upon price and date. Each Fund, through its custodian, takes possession of securities collateralizing the repurchase agreement. The collateral is marked-to-market daily to ensure that the market value of the underlying assets remains sufficient to protect the Fund in the event of default by the seller. If the seller defaults and the value of the collateral declines, or if the seller enters insolvency proceedings, realization of collateral may be delayed or limited. K. WHEN-ISSUED AND DELAYED TRANSACTIONS: Each Fund may engage in when-issued or delayed delivery transactions. Each Fund records when-issued securities on the trade date and maintains collateral for the securities purchased. Securities purchased on when-issued or delayed delivery basis begin earning interest on the settlement date. 24 PHOENIX-SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 2001 (UNAUDITED) (CONTINUED) 2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS Phoenix Investment Counsel, Inc, ("PIC" or the "Adviser") serves as investment adviser to the Phoenix-Seneca Funds and Seneca Capital Management LLC ("Seneca" or the "Subadviser") serves as investment subadviser. All of the outstanding stock of PIC and a majority of the equity interests of Seneca are owned by Phoenix Investment Partners Ltd. ("PXP"), a wholly-owned subsidiary of Phoenix Home Life Mutual Insurance Company ("PHL"). As compensation for services to the Trust, the adviser receives a fee based upon the following annual rates as a percentage of the average daily net assets of each Fund:
Adviser Fee ------- Bond Fund............................... 0.50% Mid-Cap "EDGE"-SM- Fund................. 0.80% Real Estate Securities Fund............. 0.85%
The Adviser pays the Subadviser a fee equal to one half of the Adviser fee. Phoenix Equity Planning Corporation ("PEPCO"), a direct subsidiary of PXP, serves as Administrator of the Trust. 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 the subagent's performance. For the six months ended March 31, 2001, financial agent fees were $128,140, of which PEPCO received $54,000. The current fee schedule of PFPC Inc. ranges from 0.085% to 0.0125% of the average daily net asset values of the Trust. Certain minimum fees and fee waivers may apply. The Adviser voluntarily agreed to waive or reimburse each Fund's operating expenses until January 31, 2002, to the extent that such expenses exceed the following percentages of average annual net assets:
Class X Class A Class B Class C ---------- ---------- ---------- ---------- Bond Fund............................... 0.90% 1.15% 1.90% 1.90% Mid-Cap "EDGE"-SM- Fund................. 1.15% 1.40% 2.15% 2.15% Real Estate Securities Fund............. 2.35% 3.05% 3.80% 3.80%
PEPCO serves as the national distributor of the Trust's shares and has advised the Trust that it retained net selling commissions of $26,817 for Class A shares for the six months ended March 31, 2001. Deferred sales charges retained by PEPCO for the six months ended March 31, 2001 were $22,979 for Class B shares and $5,602 for Class C shares. In addition, each Fund pays PEPCO a distribution fee at an annual rate of 0.25% for Class A shares and 1.00% for Class B and C shares applied to the average daily net assets of each Fund. The distributor has advised the Trust that of the total amount expensed for the six months ended March 31 ,2001, $244,974 was retained by the Distributor, $81,706 was paid out to unaffiliated Participants and $4,257 was paid to W.S. Griffith, an indirect subsidiary of PHL. PEPCO serves as the Trust's Transfer Agent with State Street Bank and Trust Company as sub-transfer agent. For the six months ended March 31, 2001, transfer agent fees were $159,387 of which PEPCO retained $6,070 which is net of fees paid to State Street. At March 31, 2001, PHL and affiliates held Phoenix-Seneca Fund shares which aggregated the following:
Aggregate Net Asset Shares Value ---------- ----------- Bond Fund--Class X...................... 1,278,876 $13,377,043 Bond Fund--Class A...................... 11,195 116,428 Bond Fund--Class B...................... 11,061 114,039 Bond Fund--Class C...................... 11,044 113,974 Mid-Cap "EDGE"-SM- Fund--Class B........ 7,389 143,051 Mid-Cap "EDGE"-SM- Fund--Class C........ 7,389 143,051 Real Estate Securities Fund--Class B.... 8,747 99,541 Real Estate Securities Fund--Class C.... 8,747 99,541
3. PURCHASE AND SALE OF SECURITIES Purchases and sales of securities during the six months ended March 31, 2001 (excluding U.S. Government and agency securities and short-term securities) aggregated the following:
Purchases Sales -------------- -------------- Bond Fund............................... $ 9,718,340 $14,692,579 Mid-Cap "EDGE"-SM- Fund................. 78,399,714 22,856,026 Real Estate Securities Fund............. 5,718,354 3,287,946
Purchases and sales of long-term U.S. Government and agency securities during the six months ended March 31, 2001, aggregated $29,979,637 and $21,581,993, respectively, for the Bond Fund. 4. 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 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 25 PHOENIX-SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 2001 (UNAUDITED) (CONTINUED) 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. OTHER As of March 31, 2001, the Funds had shareholders who each individually owned more than 10% of total net assets, none of whom are affiliated with PHL or PXP as follows.
Number of % of Total Shareholders Net Assets ------------ ---------- Real Estate Securities Fund............. 1 53.12%
6. CAPITAL LOSS CARRYOVERS At September 30, 2000, the following funds have capital loss carryovers which may be used to offset future capital gains.
Real Estate Expiration Date Bond Fund Securities Fund --------------- --------- --------------- 2008.................................... $314 $1,109,072 2007.................................... -- 24,701
Under current tax law, capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. For the year ended September 30, 2000, the Bond Fund and the Real Estate Securities Fund deferred capital losses of $185,546 and $1,309,782, respectively. For the year ended September 30, 2000, the Real Estate Securities Fund utilized prior year capital losses deferred of $639,028. This report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective Prospectus which includes information concerning the sales charge, the Trust's record and other pertinent information. 26 PHOENIX-SENECA FUNDS 909 Montgomery Street San Francisco, California 94133 TRUSTEES Robert Chesek E. Virgil Conway William W. Crawford Harry Dalzell-Payne William N. Georgeson Francis E. Jeffries Leroy Keith, Jr. Philip R. McLoughlin Geraldine M. McNamara Eileen A. Moran Everett L. Morris James M. Oates Richard A. Pavia Herbert Roth, Jr. Richard E. Segerson Lowell P. Weicker, Jr. OFFICERS Gail P. Seneca, President Michael E. Haylon, Executive Vice President William R. Moyer, Executive Vice President John F. Sharry, Executive Vice President Robert S. Driessen, Vice President and Assistant Secretary G. Jeffrey Bohne, Secretary Nancy G. Curtiss, Treasurer IMPORTANT NOTICE TO SHAREHOLDERS The Securities and Exchange Commission has modified mailing regulations for semiannual and annual shareholder fund reports to allow mutual fund companies to send a single copy of these reports to shareholders who share the same mailing address. If you would like additional copies, please call Mutual Fund Services at 1-800-243-1574. INVESTMENT ADVISER Phoenix Investment Counsel, Inc. 56 Prospect Street Hartford, Connecticut 06115-0480 SUBADVISER Seneca Capital Management LLC 909 Montgomery Street San Francisco, California 94133 PRINCIPAL UNDERWRITER 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 TRANSFER AGENT Phoenix Equity Planning Corporation 56 Prospect Street Hartford, Connecticut 06115-0480 INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers LLP 160 Federal Street Boston, Massachusetts 02110 HOW TO CONTACT US The Fund Connection 1-800-243-1574 Mutual Fund Services 1-800-243-1574 Advisor Consulting Group 1-800-243-4361 Text Telephone 1-800-243-1926 Website www.phoenixinvestments.com PHOENIX EQUITY PLANNING CORPORATION PO Box 150480 Hartford CT 06113-0480 PRSRT STD U.S. Postage PAID Andrew Associates [LOGO]PHOENIX 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 1140A (5/01)