N-30D 1 g02-0289.txt PHOENIX-SENECA SEMI-ANNUAL REPORT 2002 Phoenix Investment Partners SEMIANNUAL REPORT MARCH 31, 2002 (LOGO) SENECA [GRAPHIC OMITTED] Phoenix-Seneca Bond Fund Phoenix-Seneca Mid-Cap "EDGE"(SM) Fund Phoenix-Seneca Real Estate Securities Fund (LOGO) PHOENIX INVESTMENT PARTNERS [GRAPHIC OMITTED] A MEMBER OF THE PHOENIX COMPANIES, INC. MESSAGE FROM THE PRESIDENT DEAR SHAREHOLDER: We are pleased to provide this financial summary for the six months ended March 31, 2002 for the Phoenix-Seneca Funds. Please visit www.PhoenixInvestments.com for more current and complete fund information, to access your account, or to learn more about the investment manager and investing successfully. Just take the INDIVIDUAL INVESTORS path. Or, contact your financial advisor or call us at 1-800-243-1574 for information assistance. Sincerely, /s/ PHILIP R. MCLOUGHLIN Philip R. McLoughlin MARCH 31, 2002 -------------------------------------------------------------------------------- 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 .......................................12 Phoenix-Seneca Real Estate Securities Fund ...................................18 Notes to Financial Statements ................................................24 2 PHOENIX-SENECA BOND FUND INVESTMENTS AT MARCH 31, 2002 (UNAUDITED) PAR MOODY'S VALUE RATING (000) VALUE ------- ------- ----------- U.S. GOVERNMENT SECURITIES--2.8% U.S. TREASURY BONDS--2.8% U.S. Treasury Bonds 5.25%, 2/15/29 ........ Aaa $ 2,080 $ 1,873,462 U.S. Treasury Bonds 5.375%, 2/15/31 ....... Aaa 350 328,590 ----------------------------------------------------------------------------- TOTAL U.S. GOVERNMENT SECURITIES (IDENTIFIED COST $2,303,118) 2,202,052 ----------------------------------------------------------------------------- AGENCY MORTGAGE-BACKED SECURITIES--31.4% Fannie Mae 5.677%, 12/1/11 ................ Aaa 2,086 2,062,647 Fannie Mae 6%, 4/1/16 ..................... Aaa 1,624 1,632,399 Fannie Mae 7%, 1/25/24 .................... Aaa 1,000 1,026,917 Fannie Mae 7%, 5/1/26 ..................... Aaa 1,199 1,225,033 Fannie Mae 7%, 2/18/27 .................... Aaa 891 921,776 Fannie Mae 6%, 12/1/28 .................... Aaa 1,598 1,561,275 Fannie Mae 6.50%, 7/1/29 .................. Aaa 374 374,171 Fannie Mae 6.50%, 8/1/29 .................. Aaa 775 775,065 Fannie Mae 6.50%, 3/1/31 .................. Aaa 425 424,053 Fannie Mae 6.50%, 11/1/31 ................. Aaa 1,586 1,580,863 Fannie Mae 6.50%, 11/1/31 ................. Aaa 2,394 2,386,308 Fannie Mae 6.50%, 12/1/31(e) .............. Aaa 3,060 3,050,169 Fannie Mae 7%, 2/1/32 ..................... Aaa 1,486 1,516,376 Fannie Mae TBA 6%, 4/11/32 ................ Aaa 1,400 1,356,250 Fannie Mae TBA 6.50%, 4/11/32 ............. Aaa 2,650 2,636,750 Freddie Mac 7%, 7/1/09 .................... Aaa 587 612,657 Freddie Mac 7%, 7/15/23 ................... Aaa 916 921,842 GNMA 7.50%, 7/15/29 ....................... Aaa 625 652,102 ----------------------------------------------------------------------------- TOTAL AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $24,860,336) 24,716,653 ----------------------------------------------------------------------------- AGENCY NON-MORTGAGE-BACKED SECURITIES--2.1% Fannie Mae 5.25%, 4/15/07 ................. Aaa 1,700 1,694,048 ----------------------------------------------------------------------------- TOTAL AGENCY NON-MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $1,692,591) 1,694,048 ----------------------------------------------------------------------------- PAR MOODY'S VALUE RATING (000) VALUE ------- ------- ----------- ASSET-BACKED SECURITIES--1.3% Chase Manhattan Auto Owner Trust 01-A, A4 5.07%, 2/15/08(e) ................ Aaa $ 1,000 $ 1,009,323 ----------------------------------------------------------------------------- TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $999,753) 1,009,323 ----------------------------------------------------------------------------- CORPORATE BONDS--39.4% ALTERNATIVE CARRIERS--0.4% American Tower Corp. 9.375%, 2/1/09 ....... Caa 226 168,370 Crown Castle International Corp. 0%, 5/15/11(c) ................................ B 213 125,670 ----------- 294,040 ----------- APPAREL & ACCESSORIES--0.3% Levi Strauss & Co. 7%, 11/1/06 ............ B 182 168,350 Levi Strauss & Co. 11.625%, 1/15/08 ....... B 68 71,230 ----------- 239,580 ----------- BANKS--3.6% Colonial Bank 9.375%, 6/1/11 .............. Ba 600 631,424 Riggs Capital Trust II Series C 8.875%, 3/15/27 ................................... Ba 141 109,996 Sovereign Bancorp 8%, 3/15/03 ............. BB(d) 60 60,684 Sovereign Bancorp 10.20%, 6/30/05 ......... Baa 434 474,941 Sovereign Bancorp 10.50%, 11/15/06 ........ Ba 45 49,613 Washington Mutual Bank FA 6.875%, 6/15/11 ................................... A 750 756,937 Wells Fargo & Co. 5.125%, 2/15/07 ......... Aa 775 757,543 ----------- 2,841,138 ----------- BROADCASTING & CABLE TV--7.8% Adelphia Communications Corp. Series B 9.50%, 2/15/04 ............................ B 651 628,086 Charter Communications, Inc. 0%, 1/15/10(c) ................................ B 394 265,950 Clear Channel Communications, Inc. ........ 7.875%, 6/15/05 ........................... Baa 601 623,016 Clear Channel Communications, Inc. ........ 6%, 11/1/06(e) ............................ Baa 1,350 1,307,097 See Notes to Financial Statements 3 Phoenix-Seneca Bond Fund PAR MOODY'S VALUE RATING (000) VALUE ------- ------- ----------- Clear Channel Communications, Inc. 8%, 11/1/08 ............................... Ba $ 200 $ 210,000 Echostar DBS Corp. 144A 9.125%, 1/15/09(b) ................................ B 170 175,950 Echostar DBS Corp 9.375%, 2/1/09 .......... B 55 57,475 Fox / Liberty Networks LLC 0%, 8/15/07(c)(e) ............................. Ba 1,503 1,527,424 Sinclair Broadcast Group 144A 8%, 3/15/12(b) ................................ B 60 59,850 Time Warner, Inc. 9.125%, 1/15/13 ......... Baa 65 74,218 Time Warner, Inc. 6.85%, 1/15/26 .......... Baa 750 766,472 Turner Broadcasting System, Inc. 8.40%, 2/1/24 .................................... Baa 450 453,307 Von Hoffman Corp. 144A 10.25%, 3/15/09(b) ................................ B 35 35,744 ----------- 6,184,589 ----------- CASINOS & GAMING--1.6% Anchor Gaming 9.875%, 10/15/08 ............ Ba 24 26,880 Circus & Eldorado Joint Venture / Silver Legacy Capital Corp. 144A 10.125%, 3/1/12(b) ................... B 183 188,947 Harrahs Operating Co., Inc. 8%, 2/1/11 .... Baa 575 599,948 Herbst Gaming, Inc. Series B 10.75%, 9/1/08 .................................... B 76 79,705 Mandalay Resort Group 9.50%, 8/1/08 ....... Ba 46 49,910 Mandalay Resort Group 144A 9.375%, 2/15/10(b) ................................ Ba 113 119,498 MGM Mirage, Inc. 6.875%, 2/6/08 ........... Ba 203 193,938 ----------- 1,258,826 ----------- CONSUMER FINANCE--2.2% Avis Group Holdings, Inc. 11%, 5/1/09 ..... Baa 167 182,030 General Motors Acceptance Corp. 7%, 2/1/12 .................................... A 600 584,420 General Motors Acceptance Corp. 8%, 11/1/31 ................................... A 580 580,531 Washington Mutual, Inc. 5.625%, 1/15/07 ... A 400 392,400 ----------- 1,739,381 ----------- DIVERSIFIED FINANCIAL SERVICES--6.1% Citigroup, Inc. 7.25%, 10/1/10 ............ Aa 778 817,965 General Electric Capital Corp. 6.75%, 3/15/32 ................................... Aaa 1,190 1,150,147 PAR MOODY'S VALUE RATING (000) VALUE ------- ------- ----------- Golman Sachs Group, Inc. 6.60%, 1/15/12 ... A $ 590 $ 580,680 Lehman Brothers Holdings, Inc. Series F 7%, 5/15/03 ...................... A 500 517,647 Lehman Brothers Holdings, Inc. Series E 8.80%, 3/1/15 .................... A 205 232,069 Lehman Brothers Holdings, Inc. 7.73%, 10/15/23 .................................. A 100 97,604 Morgan Stanley Dean Witter & Co. 6.75%, 4/15/11 ............................ Aa 1,375 1,378,693 ----------- 4,774,805 ----------- ENVIRONMENTAL SERVICES--0.2% Waste Management, Inc. 7%, 10/1/04 ........ Ba 165 168,335 FERTILIZERS & AGRICULTURAL CHEMICALS--0.1% Terra Capital, Inc. 144A 12.875%, 10/15/08(b) ............................... B 66 68,310 FOOD DISTRIBUTORS--0.3% SUPERVALU, Inc. 9.75%, 6/15/04 ............ Ba 155 162,944 SUPERVALU, Inc. 7.875%, 8/1/09 ............ Baa 51 51,450 ----------- 214,394 ----------- FOOD RETAIL--0.3% Stater Brothers Holdings, Inc. 10.75%, 8/15/06 ................................... B 213 225,780 HEALTH CARE FACILITIES--1.2% Res-Care, Inc. 144A 10.625%, 11/15/08(b) .. B 146 132,860 Tenet Healthcare Corp. 0%, 8/12/02(c) ..... Baa 45 43,889 Tenet Healthcare Corp. 6.50%, 6/1/12 ...... Baa 800 772,078 ----------- 948,827 ----------- HOMEBUILDING--0.8% Centex Corp. 7.875%, 2/1/11 ............... Baa 94 96,999 Ryland Group 9.75%, 9/1/10 ................ Ba 90 99,000 Standard Pacific Corp. 9.50%, 9/15/10 ..... Ba 229 239,591 Toll Corp. 8.75%, 11/15/06 ................ Ba 180 185,400 ----------- 620,990 ----------- HOTELS--0.7% Hammons (John Q.) Hotels, Inc. 8.875%, 2/15/04 ........................... B 171 171,427 Hammons (John Q.) Hotels, Inc. 9.75%, 10/1/05 ................................... B 100 103,125 La Quinta Inns 7.40%, 9/15/05 ............. Ba 122 120,628 Royal Caribbean Cruises Ltd. 7.25%, 8/15/06 ................................... Ba 5 4,605 See Notes to Financial Statements 4 Phoenix-Seneca Bond Fund PAR MOODY'S VALUE RATING (000) VALUE ------- ------- ----------- Royal Caribbean Cruises Ltd. 8.75%, 2/2/11 .................................... Ba $ 130 $ 125,676 Royal Caribbean Cruises Ltd. 7.25%, 3/15/18 ................................... Ba 21 16,843 ----------- 542,304 ----------- HOUSEWARES & SPECIALTIES--0.1% American Greetings 6.10%, 8/1/28 .......... Ba 128 110,887 INTEGRATED OIL & GAS--1.0% Conoco, Inc. 6.95%, 4/15/29 ............... Baa 810 808,091 INTEGRATED TELECOMMUNICATION SERVICES--2.1% SBC Communications 5.875%, 2/1/12 ......... Aa 775 746,121 Verizon Global Funding Corp. 7.75%, 12/1/30 ................................... A 916 954,457 ----------- 1,700,578 ----------- LIFE & HEALTH INSURANCE--1.1% Metlife, Inc. 5.25%, 12/1/06 .............. A 375 367,758 Metlife, Inc. 6.125%, 12/1/11 ............. A 500 484,835 ----------- 852,593 ----------- MANAGED HEALTH CARE--1.3% Coventry Health Care, Inc. 144A 8.125%, 2/15/12(b) ................................ Ba 51 51,446 Unitedhealth Group, Inc. 6.60%, 12/1/03 ... A 775 805,558 US Oncology, Inc. 144A 9.625%, 2/1/12(b) .. B 175 170,625 ----------- 1,027,629 ----------- MEAT, POULTRY & FISH--0.2% Dean Foods Co. 8.15%, 8/1/07 .............. B 185 188,860 METAL & GLASS CONTAINERS--0.4% Owens-Brockway Glass Container, Inc. 144A 8.875%, 2/15/09(b) ................... B 285 292,125 MOVIES & ENTERTAINMENT--0.4% Fox Kids Worldwide, Inc. 10.25%, 11/1/07(c) ................................ Baa 171 182,992 United Artists Theatre Circuit, Inc. 9.30%, 7/1/15 .................................... Caa 141 106,146 ----------- 289,138 ----------- MULTI-LINE INSURANCE--0.0% CNA Financial Corp. 6.45%, 1/15/08 ........ Baa 32 29,287 CNA Financial Corp. 6.60%, 12/15/08 ....... Baa 23 20,929 ----------- 50,216 ----------- PAR MOODY'S VALUE RATING (000) VALUE ------- ------- ----------- OIL & GAS EXPLORATION & PRODUCTION--0.2% Nuevo Energy Co. 9.50%, 6/1/08 ............ B $ 130 $ 128,700 Westport Resources Corp. 144A 8.25%, 11/1/11(b) ................................ Ba 23 23,748 ----------- 152,448 ----------- PACKAGED FOODS--0.6% Conagra Foods, Inc. 7.875%, 9/15/10 ....... Baa 415 446,233 PAPER PRODUCTS--1.0% International Paper Co. 6.75%, 9/1/11 ..... Baa 776 770,527 REAL ESTATE INVESTMENT TRUSTS--2.4% Archstone-Smith Trust 6.875%, 2/15/08 ..... Baa 4 3,696 Archstone-Smith Trust 7.90%, 2/15/16 ...... Baa 200 197,480 Equity Residential Properties Trust 6.625%, 3/15/12 ................................... Baa 800 787,471 Evans Withycombe Residential, Inc. 7.50%, 4/15/04 ................................... A 100 104,937 La Quinta Properties, Inc. 7.82%, 9/10/26 . Ba 150 150,750 Sovereign Real Estate Investment Trust Series A 144A 12%, 8/29/49(b)(c) .......... Ba 500 551,250 Washington Real Estate Investment Trust 7.125%, 8/13/03 ........................... Baa 110 113,805 ----------- 1,909,389 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT--1.7% ERP Operating LP 7.57%, 8/15/26 ........... A 170 177,441 First Industrial LP 7.15%, 5/15/27 ........ Baa 500 502,142 Soc General Real Estate Co. Series A 144A 7.64%, 12/29/49(b)(c) ....... A 650 663,576 ----------- 1,343,159 ----------- RESTAURANTS--0.3% Jack in the Box, Inc. Series B 9.75%, 11/1/03 ................................... BB+(d) 220 222,750 TOBACCO--0.2% Dimon, Inc. Series B 9.625%, 10/15/11 ..... Ba 130 138,450 WIRELESS TELECOMMUNICATION SERVICES--0.8% American Cellular Corp. 9.50%, 10/15/09 ... B 110 81,400 Nextel Communications 0%, 2/15/08(c) ...... B 54 32,265 Nextel Communications 12%, 11/1/08 ........ B 125 95,312 Price Communications Wireless, Inc. 9.125%, 12/15/06 .......................... Ba 40 41,800 See Notes to Financial Statements 5 Phoenix-Seneca Bond Fund PAR MOODY'S VALUE RATING (000) VALUE ------- ------- ----------- SBA Communications Corp. 0%, 3/1/08(c) .... B $ 105 $ 63,525 TeleCorp PCS, Inc. 0%, 4/15/09(c) ......... B 255 225,675 Triton PCS, Inc. 0%, 5/1/08(c) ............ B 117 102,668 ----------- 642,645 ----------- ----------------------------------------------------------------------------- TOTAL CORPORATE BONDS (IDENTIFIED COST $31,364,591) 31,067,017 ----------------------------------------------------------------------------- NON-AGENCY MORTGAGE-BACKED SECURITIES--6.1% DLJ Commercial Mortgage Corp. 98-CG1, A1A 6.11%, 12/10/07 ....................... AAA(d) 862 884,279 First Union National Bank Commercial Mortgage 01-C3, A3 6.423%, 8/15/23 ........ AAA(d) 500 501,118 First Union-Lehman Brothers-Bank of America 98-C2, A1 6.28%, 11/18/35 ......... Aaa 762 782,645 G.E. Capital Mortgage Services, Inc. 94-21, B1 6.50%, 8/25/09 ......................... A 18 18,629 Money Store Home Equity Trust (The) 97-D, AF7 6.485%, 12/15/38 ...................... Aaa 691 711,697 PNC Mortgage Acceptance Corp. 99-CM1, A1B 7.33%, 12/10/32 ....................... AAA(d) 1,400 1,477,590 Saxon Asset Securities Trust 00-1, AF3 7.755%, 10/25/20 ...................... Aaa 425 439,042 ----------------------------------------------------------------------------- TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $4,826,924) 4,815,000 ----------------------------------------------------------------------------- FOREIGN GOVERNMENT SECURITIES--1.7% MEXICO--1.7% United Mexican States Global Bond 8.375%, 1/14/11 ................................... Baa 1,270 1,330,325 ----------------------------------------------------------------------------- TOTAL FOREIGN GOVERNMENT SECURITIES (IDENTIFIED COST $1,238,027) 1,330,325 ----------------------------------------------------------------------------- PAR MOODY'S VALUE RATING (000) VALUE ------- ------- ----------- FOREIGN CORPORATE BONDS--4.0% CANADA--1.2% Biovail Corp. 7.875%, 4/1/10 .............. B $ 190 $ 189,762 Canadian National Railways 6.375%, 10/15/11 .................................. Baa 500 491,770 Corus Entertainment, Inc. 144A 8.75%, 3/1/12(b) ................................. B 80 83,000 Rogers Cantel, Inc. 9.375%, 6/1/08 ........ Baa 83 76,568 Rogers Communications, Inc. 8.875%, 7/15/07 ................................... Ba 60 60,675 ----------- 901,775 ----------- MEXICO--2.1% Pemex Finance Ltd. 9.69%, 8/15/09 ......... Baa 50 56,257 Pemex Finance Ltd. 6.30%, 5/15/10 ......... Aaa 500 501,560 Pemex Finance Ltd. 9.03%, 2/15/11 ......... Baa 470 534,475 Pemex Finance Ltd. 10.61%, 8/15/17 ........ Baa 450 588,087 ----------- 1,680,379 ----------- UNITED KINGDOM--0.7% Abbey National plc 7.35%, 10/29/49(c) ..... Aa 100 102,627 Credit Suisse Group 144A 7.90%, 5/1/07(b)(c) .............................. A 350 360,658 Terra Nova (U.K.) Holdings 7.20%, 8/15/07 ................................... Baa 90 84,214 ----------- 547,499 ----------- ----------------------------------------------------------------------------- TOTAL FOREIGN CORPORATE BONDS (IDENTIFIED COST $3,085,800) 3,129,653 ----------------------------------------------------------------------------- CONVERTIBLE BONDS--0.6% COMPUTER STORAGE & PERIPHERALS--0.1% Quantum Corp. Cv. 7%, 8/1/04 .............. B 80 74,800 HEALTH CARE FACILITIES--0.1% HEALTHSOUTH Corp. Cv. 3.25%, 4/1/03 ....... Ba 95 92,031 SEMICONDUCTORS--0.4% Conexant Systems, Inc. Cv. 4%, 2/1/07 ..... B-(d) 138 89,355 LSI Logic Corp. Cv. 4%, 2/15/05 ........... Ba 242 209,028 ----------- 298,383 ----------- ----------------------------------------------------------------------------- TOTAL CONVERTIBLE BONDS (IDENTIFIED COST $464,451) 465,214 ----------------------------------------------------------------------------- See Notes to Financial Statements 6 Phoenix-Seneca Bond Fund SHARES VALUE ------- ----------- PREFERRED STOCKS--0.4% BANKS--0.4% First Republic Bank Series A Pfd. 144A 10.50%(b) .................................. 3,000 $ 298,500 ----------------------------------------------------------------------------- TOTAL PREFERRED STOCKS (IDENTIFIED COST $300,000) 298,500 ----------------------------------------------------------------------------- CONVERTIBLE PREFERRED STOCKS--0.1% SPECIALTY STORES--0.1% United Rentals Inc. Trust I Cv. Pfd. ................. 1,350 55,856 ----------------------------------------------------------------------------- TOTAL CONVERTIBLE PREFERRED STOCKS (IDENTIFIED COST $56,818) 55,856 ----------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--89.9% (IDENTIFIED COST $71,192,409) 70,783,641 ----------------------------------------------------------------------------- STANDARD PAR & POOR'S VALUE RATING (000) VALUE -------- ------- ----------- SHORT-TERM OBLIGATIONS--14.6% FEDERAL AGENCY SECURITIES--14.0% Freddie Mac 1.70%, 4/1/02 ................. AAA $11,000 $11,000,000 REPURCHASE AGREEMENTS--0.6% State Street Bank & Trust Co. repurchase agreement, 0.65% dated 3/28/02 due 4/1/02, repurchase price $484,035 collateralized by U.S. Treasury Bonds 4.625% to 5.125%, 12/31/02 to 2/28/03, market value $494,746 .................................. 484 484,000 ----------------------------------------------------------------------------- TOTAL SHORT TERM OBLIGATIONS (IDENTIFIED COST $11,484,000) 11,484,000 ----------------------------------------------------------------------------- TOTAL INVESTMENTS--104.5% (IDENTIFIED COST $82,676,409) 82,267,641(a) Other assets and liabilities, net--(4.5)% (3,538,189) ----------- NET ASSETS--100.0% $78,729,452 =========== (a) Federal Income Tax Information: Net unrealized appreciation of investment securities is comprised of gross appreciation of $774,870 and gross depreciation of $1,191,287 for federal income tax purposes. At March 31, 2002, the aggregate cost of securities for federal income tax purposes was $82,684,058. (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, 2002, these securities amounted to a value of $3,276,087 or 4.2% of net assets. (c) Variable or step coupon security; interest rate shown reflects the rate currently in effect. (d) As rated by Standard & Poors or Fitch. (e) All or a portion segregated as collateral for TBA securities. See Notes to Financial Statements 7 Phoenix-Seneca Bond Fund STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 2002 (UNAUDITED) ASSETS Investment securities at value (Identified cost $82,676,409) $82,267,641 Cash 29,874 Receivables Interest 811,413 Fund shares sold 174,803 Investment securities sold 74,507 Prepaid expenses 358 ----------- Total assets 83,358,596 ----------- LIABILITIES Payables Investment securities purchased 4,197,784 Fund shares repurchased 284,374 Distribution fee 41,818 Investment advisory fee 29,986 Transfer agent fee 12,184 Financial agent fee 7,934 Trustees' fee 6,034 Payable to adviser 62 Accrued expenses 48,968 ----------- Total liabilities 4,629,144 ----------- NET ASSETS $78,729,452 =========== NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $81,838,561 Accumulated net investment loss (79,552) Accumulated net realized loss (2,620,789) Net unrealized depreciation (408,768) ----------- NET ASSETS $78,729,452 =========== CLASS X Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $49,115,040) 4,895,713 Net asset value and offering price per share $10.03 CLASS A Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $17,085,227) 1,716,705 Net asset value per share $ 9.95 Offering price per share $9.95/(1-4.75%) $10.45 CLASS B Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $8,386,094) 854,251 Net asset value and offering price per share $ 9.82 CLASS C Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $4,143,091) 421,363 Net asset value and offering price per share $ 9.83 STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 2002 (UNAUDITED) INVESTMENT INCOME Interest $ 2,261,042 Dividends 47,659 ----------- Total investment income 2,308,701 ----------- EXPENSES Investment advisory fee 194,091 Distribution fee, Class A 21,385 Distribution fee, Class B 41,374 Distribution fee, Class C 20,466 Financial agent fee 50,128 Transfer agent 42,639 Registration 27,617 Professional 10,649 Custodian 11,178 Trustees 8,445 Printing 6,039 Miscellaneous 7,920 ----------- Total expenses 441,931 Less expenses borne by investment adviser (28,368) Custodian fees paid indirectly (2,621) ----------- Net expenses 410,942 ----------- NET INVESTMENT INCOME 1,897,759 ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized loss on securities (2,323,061) Net change in unrealized appreciation (depreciation) on investments (141,475) ----------- NET LOSS ON INVESTMENTS (2,464,536) ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (566,777) =========== See Notes to Financial Statements 8 Phoenix-Seneca Bond Fund STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended 3/31/02 Year Ended (Unaudited) 9/30/01 ----------- ----------- FROM OPERATIONS Net investment income (loss) $ 1,897,759 $ 4,111,529 Net realized gain (loss) (2,323,061) (87,628) Net change in unrealized appreciation (depreciation) (141,475) 1,424,868 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (566,777) 5,448,769 ----------- ----------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class X (1,642,848) (2,769,948) Net investment income, Class A (576,755) (767,943) Net investment income, Class B (263,294) (311,389) Net investment income, Class C (128,855) (176,262) ----------- ----------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (2,611,752) (4,025,542) ----------- ----------- FROM SHARE TRANSACTIONS CLASS X Proceeds from sales of shares (410,410 and 1,276,355 shares, respectively) 4,196,653 13,270,239 Net asset value of shares issued from reinvestment of distributions (155,368 and 260,508 shares, respectively) 1,581,948 2,689,580 Cost of shares repurchased (310,889 and 832,955 shares, respectively) (3,179,112) (8,569,115) ----------- ----------- Total 2,599,489 7,390,704 ----------- ----------- CLASS A Proceeds from sales of shares (550,411 and 1,515,183 shares, respectively) 5,640,389 15,638,816 Net asset value of shares issued from reinvestment of distributions (31,983 and 40,304 shares, respectively) 323,123 413,944 Cost of shares repurchased (348,894 and 798,016 shares, respectively) (3,539,865) (8,256,255) ----------- ----------- Total 2,423,647 7,796,505 ----------- ----------- CLASS B Proceeds from sales of shares (180,322 and 528,881 shares, respectively) 1,818,880 5,423,019 Net asset value of shares issued from reinvestment of distributions (13,711 and 14,051 shares, respectively) 136,883 143,468 Cost of shares repurchased (92,569 and 97,526 shares, respectively) (923,572) (999,262) ----------- ----------- Total 1,032,191 4,567,225 ----------- ----------- CLASS C Proceeds from sales of shares (131,186 and 232,592 shares, respectively) 1,318,697 2,381,528 Net asset value of shares issued from reinvestment of distributions (9,633 and 11,786 shares, respectively) 96,275 120,311 Cost of shares repurchased (93,832 and 64,594 shares, respectively) (941,695) (659,233) ----------- ----------- Total 473,277 1,842,606 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 6,528,604 21,597,040 ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS 3,350,075 23,020,267 NET ASSETS Beginning of period 75,379,377 52,359,110 ----------- ----------- END OF PERIOD [INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) OF ($79,552) AND $634,441, RESPECTIVELY] $78,729,452 $75,379,377 =========== ===========
See Notes to Financial Statements 9 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, 3/31/02 --------------------------------------------------------------- (UNAUDITED) 2001 2000 1999 1998 1997 Net asset value, beginning of period $10.44 $10.16 $10.35 $10.68 $10.47 $10.09 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.26 0.70(1) 0.77(1) 0.69(1) 0.56 0.62 Net realized and unrealized gain (loss) (0.32) 0.26 (0.18) (0.31) 0.40 0.47 ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS (0.06) 0.96 0.59 0.38 0.96 1.09 ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.35) (0.68) (0.71) (0.62) (0.57) (0.69) Dividends from net realized gains -- -- (0.07) (0.09) (0.18) (0.02) ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.35) (0.68) (0.78) (0.71) (0.75) (0.71) ------ ------ ------ ------ ------ ------ Change in net asset value (0.41) 0.28 (0.19) (0.33) 0.21 0.38 ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $10.03 $10.44 $10.16 $10.35 $10.68 $10.47 ====== ====== ====== ====== ====== ====== Total return (0.68)%(4) 9.84% 6.17% 3.51% 9.44% 11.26% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $49,115 $48,448 $39,981 $34,853 $26,455 $8,922 RATIO TO AVERAGE NET ASSETS OF: Operating expenses 0.81 %(3)(8) 0.84%(8) 0.90%(5)(8) 1.06%(5)(7) 1.66% 1.53%(5) Net investment income (loss) 5.14 %(3) 6.79% 7.67% 6.60% 5.92% 6.31% Portfolio turnover 151 %(4) 170% 74% 95% 112% 99.68%
CLASS A ---------------------------------------------------------------- SIX MONTHS FROM ENDED YEAR ENDED SEPTEMBER 30, INCEPTION 3/31/02 ------------------------------- 7/1/98 TO (UNAUDITED) 2001 2000 1999 9/30/98 Net asset value, beginning of period $10.37 $10.11 $10.29 $10.68 $10.79 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.24 0.67(1) 0.75(1) 0.59(1) 0.13(1) Net realized and unrealized gain (loss) (0.32) 0.26 (0.18) (0.33) (0.07) ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS (0.08) 0.93 0.57 0.26 0.06 ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.34) (0.67) (0.68) (0.56) (0.17) Dividends from net realized gains -- -- (0.07) (0.09) -- ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.34) (0.67) (0.75) (0.65) (0.17) ------ ------ ------ ------ ------ Change in net asset value (0.42) 0.26 (0.18) (0.39) (0.11) ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $ 9.95 $10.37 $10.11 $10.29 $10.68 ====== ====== ====== ====== ====== Total return(2) (0.88)%(4) 9.54% 5.84% 2.46% 0.53%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $17,085 $15,376 $7,335 $2,732 $348 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(6) 1.15 %(3)(9) 1.15%(9) 1.15%(9) 1.88%(7) 2.45%(3) Net investment income (loss) 4.80 %(3) 6.42% 7.60% 5.80% 5.17%(3) Portfolio turnover 151 %(4) 170% 74% 95% 112%(4) (1) Computed using average shares outstanding. (2) Maximum sales charge is not reflected in the 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 1.13%, 3.41% and 9.31% for the periods ended September 30, 2000, 1999 and 1997, 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 1.20%, 1.27%, 1.81%, 4.08% and 8.99% for the periods ended March 31, 2002, September 30, 2001, 2000, 1999 and 1998, respectively. (7) For the period 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 periods ended March 31, 2002, September 30, 2001 and September 30, 2000, the ratio of operating expenses to average net assets includes the effect of expense offsets for custodian fees; if expense offsets were excluded, the ratio would have been 0.82%, 0.85% and 0.91%, respectively. (9) The ratio of operating expenses to average net assets includes the effect of expense offsets for custodian fees; if expense offsets were excluded, the ratio would have been 1.16%.
See Notes to Financial Statements 10 Phoenix-Seneca Bond Fund FINANCIAL HIGHLIGHTS (SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS B ---------------------------------------------------------------- SIX MONTHS FROM ENDED YEAR ENDED SEPTEMBER 30, INCEPTION 3/31/02 ------------------------------- 7/1/98 TO (UNAUDITED) 2001 2000 1999 9/30/98 Net asset value, beginning of period $10.25 $10.04 $10.27 $10.67 $10.79 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.21 0.57(1) 0.68(1) 0.52(1) 0.11(1) Net realized and unrealized gain (loss) (0.32) 0.28 (0.20) (0.33) (0.08) ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS (0.11) 0.85 0.48 0.19 0.03 ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.32) (0.64) (0.64) (0.50) (0.15) Dividends from net realized gains -- -- (0.07) (0.09) -- ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.32) (0.64) (0.71) (0.59) (0.15) ------ ------ ------ ------ ------ Change in net asset value (0.43) 0.21 (0.23) (0.40) (0.12) ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $ 9.82 $10.25 $10.04 $10.27 $10.67 ====== ====== ====== ====== ====== Total return(2) (1.10)%(4) 8.67% 5.06% 1.67% 0.28%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $8,386 $7,713 $3,086 $1,593 $234 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(5) 1.90 %(3)(8) 1.90%(8) 1.90%(8) 2.62%(7) 3.20%(3) Net investment income (loss) 4.05 %(3) 5.64% 6.83% 5.09% 4.42%(3) Portfolio turnover 151 %(4) 170% 74% 95% 112%(4)
CLASS C ---------------------------------------------------------------- SIX MONTHS FROM ENDED YEAR ENDED SEPTEMBER 30, INCEPTION 3/31/02 ------------------------------- 7/1/98 TO (UNAUDITED) 2001 2000 1999 9/30/98 Net asset value, beginning of period $10.26 $10.06 $10.27 $10.67 $10.79 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.21 0.58(1) 0.69(1) 0.49(1) 0.10(1) Net realized and unrealized gain (loss) (0.32) 0.26 (0.20) (0.30) (0.07) ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS (0.11) 0.84 0.49 0.19 0.03 ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.32) (0.64) (0.63) (0.50) (0.15) Dividends from net realized gains -- -- (0.07) (0.09) -- ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.32) (0.64) (0.70) (0.59) (0.15) ------ ------ ------ ------ ------ Change in net asset value (0.43) 0.20 (0.21) (0.40) (0.12) ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $ 9.83 $10.26 $10.06 $10.27 $10.67 ====== ====== ====== ====== ====== Total return(2) (1.20)%(4) 8.65% 5.12% 1.66% 0.28%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $4,143 $3,842 $1,957 $444 $439 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(6) 1.90 %(3)(8) 1.90%(8) 1.90%(8) 2.91%(7) 3.20%(3) Net investment income (loss) 4.05 %(3) 5.69% 6.88% 4.71% 4.27%(3) Portfolio turnover 151 %(4) 170% 74% 95% 112%(4) (1) Computed using average shares outstanding. (2) Maximum sales charge is not reflected in the 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 2.16%, 2.35%, 3.08%, 5.67% and 15.79% for the periods ended March 31, 2002, September 30, 2001, 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 2.54%, 2.78%, 4.08%, 9.50% and 11.22% for the periods ended March 31, 2002, September 30, 2001, 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 offsets for custodian fees; if expense offsets were excluded, the ratio would have been 1.91%.
See Notes to Financial Statements 11 PHOENIX-SENECA MID-CAP "EDGE"(SM) FUND INVESTMENTS AT MARCH 31, 2002 (UNAUDITED) SHARES VALUE ------- ------------ COMMON STOCKS--83.8% APPAREL RETAIL--8.3% American Eagle Outfitters, Inc.(b) ......... 192,560 $ 4,769,711 Limited, Inc. (The) ........................ 364,892 6,531,567 Talbots, Inc. (The) ........................ 132,760 4,699,704 ------------ 16,000,982 ------------ APPLICATION SOFTWARE--2.8% Electronic Arts, Inc.(b) ................... 88,320 5,369,856 BANKS--3.3% Charter One Financial, Inc. ................ 199,818 6,238,318 Zions Bancorp .............................. 4,350 257,824 ------------ 6,496,142 ------------ BIOTECHNOLOGY--2.8% Genzyme Corp.(b) ........................... 123,900 5,410,713 BROADCASTING & CABLE TV--3.4% Univision Communications, Inc. Class A(b) .. 156,730 6,582,660 ELECTRONIC EQUIPMENT & INSTRUMENTS--3.1% Jabil Circuit, Inc.(b) ..................... 257,590 6,061,093 HEALTH CARE DISTRIBUTORS & SERVICES--3.0% AmerisourceBergen Corp. .................... 85,800 5,860,140 HEALTH CARE EQUIPMENT--3.8% Biomet, Inc. ............................... 69,670 1,885,270 St. Jude Medical, Inc.(b) .................. 70,490 5,438,304 ------------ 7,323,574 ------------ HOTELS--2.7% Starwood Hotels & Resorts Worldwide, Inc. .. 137,450 5,169,495 HOUSEHOLD APPLIANCES--2.5% Maytag Corp. ............................... 107,600 4,761,300 HOUSEHOLD PRODUCTS--2.9% Clorox Co. (The) ........................... 129,570 5,653,139 HOUSEWARES & SPECIALTIES--2.3% Newell Rubbermaid, Inc. .................... 136,870 4,374,365 INDUSTRIAL MACHINERY--5.9% Danaher Corp. .............................. 66,280 4,707,205 SPX Corp.(b) ............................... 46,960 6,648,597 ------------ 11,355,802 ------------ SHARES VALUE ------- ------------ IT CONSULTING & SERVICES--2.0% Affiliated Computer Services, Inc. Class A(b) 70,430 $ 3,953,236 MOTORCYCLE MANUFACTURERS--2.7% Harley-Davidson, Inc. ...................... 95,240 5,250,581 NETWORKING EQUIPMENT--3.8% Brocade Communications Systems, Inc.(b) .... 110,620 2,986,740 Juniper Networks, Inc.(b) .................. 341,030 4,303,799 ------------ 7,290,539 ------------ PHARMACEUTICALS--2.8% Allergan, Inc. ............................. 83,560 5,402,154 SEMICONDUCTOR EQUIPMENT--3.5% Novellus Systems, Inc.(b) .................. 126,920 6,871,449 SEMICONDUCTORS--19.3% Advanced Micro Devices, Inc.(b) ............ 362,010 5,325,167 Altera Corp.(b) ............................ 292,160 6,389,539 Atmel Corp.(b) ............................. 547,680 5,553,475 LSI Logic Corp.(b) ......................... 331,360 5,633,120 Micrel, Inc.(b) ............................ 148,690 3,749,962 RF Micro Devices, Inc.(b) .................. 267,890 4,795,231 Semtech Corp.(b) ........................... 161,360 5,889,640 ------------ 37,336,134 ------------ SPECIALTY STORES--2.9% Tiffany & Co. .............................. 158,220 5,624,721 ----------------------------------------------------------------------------- TOTAL COMMON STOCKS (IDENTIFIED COST $157,401,012) 162,148,075 ----------------------------------------------------------------------------- FOREIGN COMMON STOCKS--9.3% COMPUTER STORAGE & PERIPHERALS--2.7% ATI Technologies, Inc. (Canada)(b) ......... 393,630 5,274,642 PHARMACEUTICALS--2.9% Biovail Corp. (Canada)(b) .................. 111,110 5,553,278 SEMICONDUCTORS--3.7% Marvell Technology Group Ltd. (Bermuda)(b) . 165,040 7,228,752 ----------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $14,344,169) 18,056,672 ----------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--93.1% (IDENTIFIED COST $171,745,181) 180,204,747 ----------------------------------------------------------------------------- See Notes to Financial Statements 12 Phoenix-Seneca Mid-Cap "EDGE"(SM) Fund PAR VALUE (000) VALUE ------- ------------ SHORT-TERM OBLIGATIONS--8.6% REPURCHASE AGREEMENTS--8.6% State Street Bank & Trust Co. repurchase agreement 0.65%, dated 3/28/02 due 4/01/02, repurchase price $16,672,204 collateralized by U.S. Treasury Note 5.125%, 12/31/02, market value $17,007,426 ................... $16,671 $ 16,671,000 ----------------------------------------------------------------------------- TOTAL SHORT-TERM OBLIGATIONS (IDENTIFIED COST $16,671,000) 16,671,000 ----------------------------------------------------------------------------- TOTAL INVESTMENTS--101.7% (IDENTIFIED COST $188,416,181) 196,875,747(a) Other assets and liabilities, net--(1.7)% (3,269,607) ------------ NET ASSETS--100.0% $193,606,140 ============ (a) Federal Income Tax Information: Net unrealized appreciation of investment securities is comprised of gross appreciation of $17,934,825 and gross depreciation of $9,475,259 for federal income tax purposes. At March 31, 2002, the aggregate cost of securities for federal income tax purposes was $188,416,181. (b) Non-income producing. See Notes to Financial Statements 13 Phoenix-Seneca Mid-Cap "EDGE"(SM) Fund STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 2002 (UNAUDITED) ASSETS Investment securities at value (Identified cost $188,416,181) $196,875,747 Cash 604 Receivables Fund shares sold 1,307,222 Investment securities sold 438,880 Dividends and interest 8,588 Receivable from adviser 2,562 Prepaid expenses 889 ------------ Total assets 198,634,492 ------------ LIABILITIES Payables Investment securities purchased 4,303,407 Fund shares repurchased 252,975 Distribution fee 235,960 Investment advisory fee 129,743 Transfer agent fee 40,756 Financial agent fee 13,978 Trustees' fee 6,133 Accrued expenses 45,400 ------------ Total liabilities 5,028,352 ------------ NET ASSETS $193,606,140 ============ NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $230,203,210 Accumulated net investment loss (1,166,045) Accumulated net realized loss (43,890,591) Net unrealized appreciation 8,459,566 ------------ NET ASSETS $193,606,140 ============ CLASS X Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $18,985,088) 1,011,468 Net asset value and offering price per share $18.77 CLASS A Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $96,404,653) 5,236,326 Net asset value per share $18.41 Offering price per share $18.41/(1-5.75%) $19.53 CLASS B Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $33,170,619) 1,866,671 Net asset value and offering price per share $17.77 CLASS C Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $45,045,780) 2,535,228 Net asset value and offering price per share $17.77 STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 2002 (UNAUDITED) INVESTMENT INCOME Dividends $ 205,616 Interest 54,450 ----------- Total investment income 260,066 ----------- EXPENSES Investment advisory fee 685,172 Distribution fee, Class A 107,149 Distribution fee, Class B 146,705 Distribution fee, Class C 194,602 Financial agent fee 84,066 Transfer agent 152,853 Registration 31,525 Printing 21,722 Professional 12,496 Custodian 10,056 Trustees 8,542 Miscellaneous 13,283 ----------- Total expenses 1,468,171 Less expenses borne by investment adviser (42,060) ----------- Net expenses 1,426,111 ----------- NET INVESTMENT LOSS (1,166,045) ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized loss on securities (12,383,907) Net change in unrealized appreciation (depreciation) on investments 40,614,173 ----------- NET GAIN ON INVESTMENTS 28,230,266 ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $27,064,221 =========== See Notes to Financial Statements 14 Phoenix-Seneca Mid-Cap "EDGE"(SM) Fund STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended 3/31/02 Year Ended (Unaudited) 9/30/01 ------------ ------------ FROM OPERATIONS Net investment income (loss) $ (1,166,045) $ (1,518,265) Net realized gain (loss) (12,383,907) (31,412,506) Net change in unrealized appreciation (depreciation) 40,614,173 (48,619,393) ------------ ------------ INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 27,064,221 (81,550,164) ------------ ------------ FROM DISTRIBUTIONS TO SHAREHOLDERS Net realized short-term gains, Class X -- (1,280,655) Net realized short-term gains, Class A -- (3,636,707) Net realized short-term gains, Class B -- (1,295,626) Net realized short-term gains, Class C -- (1,543,099) Net realized long-term gains, Class X -- (498,795) Net realized long-term gains, Class A -- (1,416,473) Net realized long-term gains, Class B -- (504,626) Net realized long-term gains, Class C -- (601,570) ------------ ------------ DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS -- (10,777,551) ------------ ------------ FROM SHARE TRANSACTIONS CLASS X Proceeds from sales of shares (154,230 and 211,221 shares, respectively) 2,786,634 4,937,511 Net asset value of shares issued from reinvestment of distributions (0 and 74,271 shares, respectively) -- 1,683,726 Cost of shares repurchased (47,381 and 119,042 shares, respectively) (829,930) (2,742,193) ------------ ------------ Total 1,956,704 3,879,044 ------------ ------------ CLASS A Proceeds from sales of shares (2,026,446 and 3,557,208 shares, respectively) 35,916,996 78,486,634 Net asset value of shares issued from reinvestment of distributions (0 and 136,067 shares, respectively) -- 3,035,674 Cost of shares repurchased (1,098,869 and 1,015,689 shares, respectively) (19,420,498) (21,198,122) ------------ ------------ Total 16,496,498 60,324,186 ------------ ------------ CLASS B Proceeds from sales of shares (407,209 and 1,165,895 shares, respectively) 7,014,862 25,546,790 Net asset value of shares issued from reinvestment of distributions (0 and 69,791 shares, respectively) -- 1,517,258 Cost of shares repurchased (115,445 and 188,526 shares, respectively) (1,984,897) (3,675,032) ------------ ------------ Total 5,029,965 23,389,016 ------------ ------------ CLASS C Proceeds from sales of shares (792,817 and 1,581,684 shares, respectively) 13,686,768 34,919,468 Net asset value of shares issued from reinvestment of distributions (0 and 86,734 shares, respectively) -- 1,884,681 Cost of shares repurchased (325,921 and 205,773 shares, respectively) (5,630,291) (4,329,817) ------------ ------------ Total 8,056,477 32,474,332 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 31,539,644 120,066,578 ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS 58,603,865 27,738,863 NET ASSETS Beginning of period 135,002,275 107,263,412 ------------ ------------ END OF PERIOD [INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) OF ($1,166,045) AND $0, RESPECTIVELY] $193,606,140 $135,002,275 ============ ============
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 X -------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, 3/31/02 ------------------------------------------------------------- (UNAUDITED) 2001 2000 1999 1998 1997 Net asset value, beginning of period $15.70 $31.18 $17.78 $13.81 $16.47 $14.97 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (0.08)(1) (0.14)(1) (0.19)(1) (0.21)(1) (0.23)(1) (0.17) Net realized and unrealized gain (loss) 3.15 (12.91) 15.65 4.72 (0.58) 1.84 ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 3.07 (13.05) 15.46 4.51 (0.81) 1.67 ------ ------ ------ ------ ------ ------ 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 3.07 (15.48) 13.40 3.97 (2.66) 1.50 ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $18.77 $15.70 $31.18 $17.78 $13.81 $16.47 ====== ====== ====== ====== ====== ====== Total return 19.55 %(7) (44.25)% 91.81 % 33.02 % (4.22)% 11.39 % RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $18,985 $14,198 $23,016 $10,640 $8,940 $9,390 RATIO TO AVERAGE NET ASSETS OF: Operating expenses 1.15 %(3)(6) 1.15 %(3)(5) 1.27 %(3) 1.96 % 2.10 %(3) 1.74 %(3) Net investment income (loss) (0.85)%(6) (0.61)% (0.72)% (1.27)% (1.49)% (0.97)% Portfolio turnover 76 %(7) 96 % 124 % 192 % 206 % 283.60 %
CLASS A -------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, 3/31/02 ------------------------------------------------------------- (UNAUDITED) 2001 2000 1999 1998 1997 Net asset value, beginning of period $15.41 $30.75 $17.60 $13.75 $16.49 $14.94 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (0.10)(1) (0.19)(1) (0.24)(1) (0.31)(1) (0.30)(1) (0.25) Net realized and unrealized gain (loss) 3.10 (12.72) 15.45 4.70 (0.59) 1.90 ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 3.00 (12.91) 15.21 4.39 (0.89) 1.65 ------ ------ ------ ------ ------ ------ 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 3.00 (15.34) 13.15 3.85 (2.74) 1.55 ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $18.41 $15.41 $30.75 $17.60 $13.75 $16.49 ====== ====== ====== ====== ====== ====== Total return(2) 19.47 %(7) (44.42)% 91.30 % 32.27 % (4.74)% 11.25 % RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $96,405 $66,411 $50,150 $6,457 $3,666 $2,419 RATIO TO AVERAGE NET ASSETS OF: Operating expenses 1.40 %(4)(6) 1.40 %(4)(5) 1.47 %(4) 2.51 % 2.70 %(4) 2.37 %(4) Net investment income (loss) (1.10)%(6) (0.86)% (0.91)% (1.81)% (1.95)% (1.60)% Portfolio turnover 76 %(7) 96 % 124 % 192 % 206 % 283.60 % (1) Computed using average shares outstanding. (2) Maximum sales charge is not reflected in the total return calculation. (3) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 1.19%, 1.22%, 1.43%, 2.38% and 2.77% for the periods ended March 31, 2002, September 30, 2001, 2000, 1998 and 1997, respectively. (4) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 1.41%, 1.40%, 1.59%, 2.74% and 4.32% for the periods ended March 31, 2002, September 30, 2001, 2000, 1998 and 1997, respectively. (5) The ratio of operating expenses to average net assets includes the effect of expense offsets for custodian fees; if expense offsets were excluded, the ratio would not significantly differ. (6) Annualized. (7) Not annualized.
See Notes to Financial Statements 16 Phoenix-Seneca Mid-Cap "EDGE"(SM) Fund FINANCIAL HIGHLIGHTS (SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS B ---------------------------------------------------------------- SIX MONTHS FROM ENDED YEAR ENDED SEPTEMBER 30, INCEPTION 3/31/02 ------------------------------- 7/1/98 TO (UNAUDITED) 2001 2000 1999 9/30/98 Net asset value, beginning of period $14.93 $30.09 $17.41 $13.73 $17.15 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)(1) (0.16) (0.34) (0.45) (0.47) (0.09) Net realized and unrealized gain (loss) 3.00 (12.39) 15.19 4.69 (3.33) ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 2.84 (12.73) 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 2.84 (15.16) 12.68 3.68 (3.42) ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $17.77 $14.93 $30.09 $17.41 $13.73 ====== ====== ====== ====== ====== Total return(2) 19.02 %(4) (44.83)% 89.49 % 31.05 % (19.94)%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $33,171 $23,519 $15,879 $1,676 $145 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(5) 2.15 %(3) 2.15 %(7) 2.29 % 3.45 % 3.45 %(3) Net investment income (loss) (1.85)%(3) (1.61)% (1.73)% (2.78)% (2.45)%(3) Portfolio turnover 76 %(4) 96 % 124 % 192 % 206 %(4)
CLASS C ----------------------------------------------------------------- SIX MONTHS FROM ENDED YEAR ENDED SEPTEMBER 30, INCEPTION 3/31/02 ----------------------------------- 7/1/98 TO (UNAUDITED) 2001 2000 1999 9/30/98 Net asset value, beginning of period $14.93 $30.08 $17.40 $13.72 $17.15 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)(1) (0.15) (0.34) (0.45) (0.47) (0.09) Net realized and unrealized gain (loss) 2.99 (12.38) 15.19 4.69 (3.34) ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 2.84 (12.72) 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 2.84 (15.15) 12.68 3.68 (3.43) ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $17.77 $14.93 $30.08 $17.40 $13.72 ====== ====== ====== ====== ====== Total return(2) 19.02 %(4) (44.81)% 89.54 % 31.07 % (20.00)%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $45,046 $30,874 $18,218 $975 $103 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(6) 2.11 %(3) 2.15 %(6)(7) 2.25 %(6) 3.45 %(6) 3.45 %(3)(6) Net investment income (loss) (1.81)%(3) (1.61)% (1.68)% (2.78)% (2.44)%(3) Portfolio turnover 76 %(4) 96 % 124 % 192 % 206 %(4) (1) Computed using average shares outstanding. (2) Maximum sales charge is not reflected in the 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 2.39%, 2.34%, 2.70%, 6.33% and 20.80% for the periods ended March 31, 2002, September 30, 2001, 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 2.20%, 2.65%, 9.03% and 21.14% for the periods ended September 30, 2001, 2000, 1999 and 1998, respectively. (7) The ratio of operating expenses to average net assets includes the effect of expense offsets for custodian fees; if expense offsets were excluded, the ratio would not significantly differ.
See Notes to Financial Statements 17 PHOENIX-SENECA REAL ESTATE SECURITIES FUND INVESTMENTS AT MARCH 31, 2002 (UNAUDITED) SHARES VALUE ------ ----------- COMMON STOCKS--83.9% REAL ESTATE INVESTMENT TRUSTS--63.7% DIVERSIFIED--4.8% iStar Financial, Inc. ...................... 39,450 $ 1,140,105 INDUSTRIAL/OFFICE--10.6% MIXED--2.4% Reckson Associates Realty Corp. ............ 23,050 568,413 OFFICE--8.2% Arden Realty, Inc. ......................... 17,000 482,800 Equity Office Properties Trust ............. 33,445 1,003,016 Mack-Cali Realty Corp. ..................... 13,150 456,042 ----------- 1,941,858 ----------- ---------------------------------------------------------------------------- TOTAL INDUSTRIAL/OFFICE 2,510,271 ---------------------------------------------------------------------------- MORTGAGE--9.4% HOME FINANCING--9.4% Apex Mortgage Capital, Inc. ................ 82,900 960,811 Redwood Trust, Inc. ........................ 46,500 1,266,195 ---------------------------------------------------------------------------- TOTAL MORTGAGE 2,227,006 ---------------------------------------------------------------------------- RESIDENTIAL--34.2% APARTMENTS--26.1% Archstone Smith Trust ...................... 32,546 871,907 Avalonbay Communities, Inc. ................ 20,850 1,038,330 BRE Properties, Inc. Class A ............... 26,800 871,268 Equity Residential Properties Trust ........ 27,400 787,476 Essex Property Trust, Inc. ................. 17,750 926,195 Post Properties, Inc. ...................... 32,700 1,098,720 United Dominion Realty Trust, Inc. ......... 37,500 594,000 ----------- 6,187,896 ----------- MANUFACTURED HOMES--8.1% Chateau Communities, Inc. .................. 34,100 979,693 Manufactured Home Communities, Inc. ........ 28,200 930,600 ----------- 1,910,293 ----------- ---------------------------------------------------------------------------- TOTAL RESIDENTIAL 8,098,189 ---------------------------------------------------------------------------- SHARES VALUE ------ ----------- RETAIL--4.7% REGIONAL MALLS--4.7% Simon Property Group, Inc. ................. 34,115 $ 1,113,172 ---------------------------------------------------------------------------- TOTAL REAL ESTATE INVESTMENT TRUSTS (IDENTIFIED COST $12,909,406) 15,088,743 ---------------------------------------------------------------------------- REAL ESTATE OPERATING COMPANIES--2.1% DIVERSIFIED--2.1% Northstar Capital Investment Corp. 144A(b)(c)(d) .............................. 35,000 490,000 ---------------------------------------------------------------------------- TOTAL REAL ESTATE OPERATING COMPANIES (IDENTIFIED COST $720,625) 490,000 ---------------------------------------------------------------------------- BANKS--9.7% Bay View Capital Corp. ..................... 148,404 1,015,084 Wells Fargo & Co. .......................... 26,300 1,299,220 ----------- (Identified cost $1,923,913) 2,314,304 ----------- DIVERSIFIED FINANCIAL SERVICES--8.4% Freddie Mac ................................ 15,000 950,550 J.P. Morgan Chase & Co. .................... 29,500 1,051,675 ----------- (Identified cost $2,099,475) 2,002,225 ----------- ---------------------------------------------------------------------------- TOTAL COMMON STOCKS (IDENTIFIED COST $17,653,419) 19,895,272 ---------------------------------------------------------------------------- See Notes to Financial Statements 18 Phoenix-Seneca Real Estate Securities Fund SHARES VALUE ------ ----------- CONVERTIBLE PREFERRED STOCKS--13.7% REAL ESTATE INVESTMENT TRUSTS--8.8% INDUSTRIAL/OFFICE--8.8% MIXED--4.0% Reckson Associates Realty Corp. Series A Cv. Pfd. 7.625% ............................ 39,000 $ 947,700 OFFICE--4.8% Glenborough Realty Trust, Inc. Series A Cv. Pfd. 7.75% ............................. 50,950 1,123,447 ---------------------------------------------------------------------------- TOTAL REAL ESTATE INVESTMENT TRUSTS (IDENTIFIED COST $1,864,227) 2,071,147 ---------------------------------------------------------------------------- MULTI-UTILITIES--4.9% William Cos., Inc. Cv. Pfd. 9% (Identified Cost $1,070,375) ............... 45,500 1,166,165 ---------------------------------------------------------------------------- TOTAL CONVERTIBLE PREFERRED STOCKS (IDENTIFIED COST $2,934,602) 3,237,312 ---------------------------------------------------------------------------- TOTAL INVESTMENTS--97.6% (IDENTIFIED COST $20,588,021) 23,132,584(a) Other assets and liabilities, net--2.4% 567,446 ----------- NET ASSETS--100.0% $23,700,030 =========== (a) Federal Income Tax Information: Net unrealized appreciation of investment securities is comprised of gross appreciation of $2,787,134 and gross depreciation of $535,899 for federal income tax purposes. At March 31, 2002, the aggregate cost of securities for federal income tax purposes was $20,881,349. (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. (d) 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, 2002, these securities amounted to a value of $490,000 or 2.1% of net assets. See Notes to Financial Statements 19 Phoenix-Seneca Real Estate Securities Fund STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 2002 (UNAUDITED) ASSETS Investment securities at value, (Identified cost $20,588,021) $23,132,584 Receivables Investment securities sold 1,880,627 Dividends 218,035 Fund shares sold 10,331 Prepaid expenses 106 ----------- Total assets 25,241,683 ----------- LIABILITIES Payables Cash overdraft 1,268,833 Fund shares repurchased 185,000 Investment advisory fee 15,497 Transfer agent fee 12,295 Trustees' fee 6,133 Distribution fee 5,101 Financial agent fee 4,541 Payable to adviser 2,500 Accrued expenses 41,753 ----------- Total liabilities 1,541,653 ----------- NET ASSETS $23,700,030 =========== NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $22,104,696 Undistributed net investment income 162,385 Accumulated net realized loss (1,111,614) Net unrealized appreciation 2,544,563 ----------- NET ASSETS $23,700,030 =========== CLASS X Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $19,201,640) 1,381,450 Net asset value and offering price per share $13.90 CLASS A Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $2,958,285) 218,022 Net asset value per share $13.57 Offering price per share $13.57/(1-5.75%) $14.40 CLASS B Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $812,283) 60,098 Net asset value and offering price per share $13.52 CLASS C Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $727,822) 53,867 Net asset value and offering price per share $13.51 STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 2002 (UNAUDITED) INVESTMENT INCOME Dividends $ 780,055 Interest 5,890 ---------- Total investment income 785,945 ---------- EXPENSES Investment advisory fee 100,170 Distribution fee, Class A 3,175 Distribution fee, Class B 3,284 Distribution fee, Class C 3,174 Financial agent fee 27,574 Transfer agent 38,121 Registration 24,663 Professional 9,214 Trustees 8,542 Printing 4,205 Custodian 3,844 Miscellaneous 4,235 ---------- Total expenses 230,201 Less expenses borne by investment adviser (21,288) ---------- Net expenses 208,913 ---------- NET INVESTMENT INCOME 577,032 ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain on securities 978,134 Net change in unrealized appreciation (depreciation) on investments 1,263,913 ---------- NET GAIN ON INVESTMENTS 2,242,047 ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,819,079 ========== See Notes to Financial Statements 20 Phoenix-Seneca Real Estate Securities Fund STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended 3/31/02 Year Ended (Unaudited) 9/30/01 ----------- ----------- FROM OPERATIONS Net investment income (loss) $ 577,032 $ 636,484 Net realized gain (loss) 978,134 367,999 Net change in unrealized appreciation (depreciation) 1,263,913 745,168 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 2,819,079 1,749,651 ----------- ----------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class X (418,096) (527,989) Net investment income, Class A (33,109) (43,015) Net investment income, Class B (6,461) (7,350) Net investment income, Class C (5,979) (7,319) ----------- ----------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (463,645) (585,673) ----------- ----------- FROM SHARE TRANSACTIONS CLASS X Proceeds from sales of shares (230,913 and 131,659 shares, respectively) 2,975,938 1,571,755 Net asset value of shares issued from reinvestment of distributions (30,180 and 42,197 shares, respectively) 398,820 507,375 Cost of shares repurchased (254,596 and 204,805 shares, respectively) (3,489,202) (2,466,963) ----------- ----------- Total (114,444) (387,833) ----------- ----------- CLASS A Proceeds from sales of shares (106,511 and 128,165 shares, respectively) 1,355,017 1,521,991 Net asset value of shares issued from reinvestment of distributions (2,180 and 3,019 shares, respectively) 28,115 35,640 Cost of shares repurchased (86,313 and 58,698 shares, respectively) (1,087,078) (679,131) ----------- ----------- Total 296,054 878,500 ----------- ----------- CLASS B Proceeds from sales of shares (18,757 and 24,894 shares, respectively) 236,307 297,623 Net asset value of shares issued from reinvestment of distributions (482 and 613 shares, respectively) 6,175 7,223 Cost of shares repurchased (4,222 and 5,035 shares, respectively) (53,426) (60,239) ----------- ----------- Total 189,056 244,607 ----------- ----------- CLASS C Proceeds from sales of shares (15,843 and 21,164 shares, respectively) 194,371 250,226 Net asset value of shares issued from reinvestment of distributions (347 and 457 shares, respectively) 4,457 5,391 Cost of shares repurchased (5,058 and 7,148 shares, respectively) (62,452) (84,079) ----------- ----------- Total 136,376 171,538 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 507,042 906,812 ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS 2,862,476 2,070,790 NET ASSETS Beginning of period 20,837,554 18,766,764 ----------- ----------- END OF PERIOD [INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) OF $162,385 AND $48,998 RESPECTIVELY] $23,700,030 $20,837,554 =========== ===========
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 X -------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, 3/31/02 ------------------------------------------------------------- (UNAUDITED) 2001 2000 1999 1998 1997 Net asset value, beginning of period $12.62 $11.89 $ 9.69 $11.11 $14.71 $11.10 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.34(1) 0.42(1) 0.34(1) 0.47(1) 0.54 0.13 Net realized and unrealized gain (loss) 1.20 0.69 2.35 (1.20) (3.10) 3.77 ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 1.54 1.11 2.69 (0.73) (2.56) 3.90 ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.26) (0.38) (0.49) (0.44) (0.46) (0.28) Dividends from net realized gains -- -- -- (0.25) (0.58) (0.01) ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.26) (0.38) (0.49) (0.69) (1.04) (0.29) ------ ------ ------ ------ ------ ------ Change in net asset value 1.28 0.73 2.20 (1.42) (3.60) 3.61 ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $13.90 $12.62 $11.89 $ 9.69 $11.11 $14.71 ====== ====== ====== ====== ====== ====== Total return 12.33%(4) 9.52% 29.00% (6.66)% (18.33)% 35.44% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $19,202 $17,349 $16,713 $17,346 $21,794 $28,193 RATIO TO AVERAGE NET ASSETS OF: Operating expenses 1.50%(3) 1.59%(7) 1.79% 1.66 % 1.47 % 1.99%(5) Net investment income (loss) 5.15%(3) 3.49% 3.35% 4.50 % 4.14 % 2.38% Portfolio turnover 76%(4) 40% 65% 5 % 53 % 75.68%
CLASS A -------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, 3/31/02 ------------------------------------------------------------- (UNAUDITED) 2001 2000 1999 1998 1997 Net asset value, beginning of period $12.32 $11.67 $ 9.54 $11.00 $14.68 $11.08 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.24(1) 0.25(1) 0.21(1) 0.32(1) 0.35 0.03 Net realized and unrealized gain (loss) 1.18 0.67 2.30 (1.19) (3.08) 3.78 ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 1.42 0.92 2.51 (0.87) (2.73) 3.81 ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.17) (0.27) (0.38) (0.34) (0.37) (0.20) Dividends from net realized gains -- -- -- (0.25) (0.58) (0.01) ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.17) (0.27) (0.38) (0.59) (0.95) (0.21) ------ ------ ------ ------ ------ ------ Change in net asset value 1.25 0.65 2.13 (1.46) (3.68) 3.60 ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $13.57 $12.32 $11.67 $ 9.54 $11.00 $14.68 ====== ====== ====== ====== ====== ====== Total return(2) 11.58%(4) 7.96% 27.40% (7.97)% (19.52)% 35.54% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $2,958 $2,410 $1,437 $919 $1,357 $3,176 RATIO TO AVERAGE NET ASSETS OF: Operating expenses 2.85%(3) 3.05%(6)(7) 3.05%(6) 3.05 %(6) 2.76 % 2.91%(6) Net investment income (loss) 3.92%(3) 2.11% 2.11% 3.13 % 2.45 % 1.37% Portfolio turnover 76%(4) 40% 65% 5 % 53 % 75.68% (1) Computed using average shares outstanding. (2) Maximum sales charge is not reflected in the 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% for the period ended September 30, 1997. (6) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 3.18%, 4.28%, 4.27% and 3.79% for the periods ended September 30, 2001, 2000, 1999 and 1997, respectively. (7) For the year ended September 30, 2001, the ratio of operating expenses to average net assets includes the effect of expense offsets for custodian fees; if expense offsets were excluded, the ratio would have been 1.60% for Class X and the ratio would not significantly differ for Class A.
See Notes to Financial Statements 22 Phoenix-Seneca Real Estate Securities Fund FINANCIAL HIGHLIGHTS (SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS B ---------------------------------------------------------------- SIX MONTHS FROM ENDED YEAR ENDED SEPTEMBER 30, INCEPTION 3/31/02 ------------------------------- 7/1/98 TO (UNAUDITED) 2001 2000 1999 9/30/98 Net asset value, beginning of period $12.28 $11.66 $ 9.55 $11.01 $12.58 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.19(1) 0.17(1) 0.12(1) 0.29(1) 0.07 Net realized and unrealized gain (loss) 1.17 0.65 2.31 (1.22) (1.58) ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 1.36 0.82 2.43 (0.93) (1.51) ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.12) (0.20) (0.32) (0.28) (0.06) Dividends from net realized gains -- -- -- (0.25) -- ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.12) (0.20) (0.32) (0.53) (0.06) ------ ------ ------ ------ ------ Change in net asset value 1.24 0.62 2.11 (1.46) (1.57) ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $13.52 $12.28 $11.66 $ 9.55 $11.01 ====== ====== ====== ====== ====== Total return(2) 11.04%(4) 7.21% 26.37% (8.59)% (11.97)%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $812 $554 $287 $197 $91 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(5) 3.80%(3) 3.80%(7) 3.80% 3.80 % 3.80 %(3) Net investment income (loss) 3.05%(3) 1.43% 1.19% 2.79 % 2.50 %(3) Portfolio turnover 76%(4) 40% 65% 5 % 53 %(4)
CLASS C ----------------------------------------------------------------- SIX MONTHS FROM ENDED YEAR ENDED SEPTEMBER 30, INCEPTION 3/31/02 ----------------------------------- 7/1/98 TO (UNAUDITED) 2001 2000 1999 9/30/98 Net asset value, beginning of period $12.28 $11.66 $ 9.55 $11.01 $12.58 INCOME FROM INVESTMENT OPERATIONS Net investment income (loss) 0.19(1) 0.16(1) 0.14(1) 0.29(1) 0.07 Net realized and unrealized gain (loss) 1.16 0.66 2.29 (1.22) (1.58) ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 1.35 0.82 2.43 (0.93) (1.51) ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.12) (0.20) (0.32) (0.28) (0.06) Dividends from net realized gains -- -- -- (0.25) -- ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.12) (0.20) (0.32) (0.53) (0.06) ------ ------ ------ ------ ------ Change in net asset value 1.23 0.62 2.11 (1.46) (1.57) ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $13.51 $12.28 $11.66 $ 9.55 $11.01 ====== ====== ====== ====== ====== Total return(2) 11.13%(4) 7.12% 26.37% (8.58)% (11.97)%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $728 $525 $329 $200 $88 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(6) 3.80%(3) 3.80%(7) 3.80% 3.80 % 3.80 %(3) Net investment income (loss) 2.93%(3) 1.38% 1.36% 2.80 % 2.44 %(3) Portfolio turnover 76%(4) 40% 65% 5 % 53 %(4) (1) Computed using average shares outstanding. (2) Maximum sales charge is not reflected in the 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 7.03%, 9.33%, 15.48%, 18.50% and 22.08% for the periods ended March 31, 2002, September 30, 2001, 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 7.16%, 9.18%, 13.58%, 19.95% and 22.93% for the periods ended March 31, 2002, September 30, 2001, 2000, 1999 and 1998, respectively. (7) For the year ended September 30, 2001, the ratio of operating expenses to average net assets includes the effect of expense offsets for custodian fees; if expense offsets were excluded, the ratio would have been 3.81%.
See Notes to Financial Statements 23 PHOENIX-SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 2002 (UNAUDITED) 1. SIGNIFICANT ACCOUNTING POLICIES 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. Real Estate Securities Fund is a non-diversified Fund and seeks to emphasize capital appreciation and income equally. 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"(SM) 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 of America 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. Effective October 1, 2001, the Fund adopted the revised AICPA Audit and Accounting Guide, Audits of Investment Companies, and began 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 does not affect the Fund's net asset value, but changes the classification of certain amounts between interest income and unrealized gain/loss in the Statement of Operations. The adoption of these principles was not 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 nontaxable 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. 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 24 PHOENIX-SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 2002 (UNAUDITED) (CONTINUED) 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, 2002, 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, 2002, the Trust had no options. H. 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. I. 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. J. 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. 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 The Phoenix Companies, Inc. ("PNX"). 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. 25 PHOENIX-SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 2002 (UNAUDITED) (CONTINUED) 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, 2002, financial agent fees were $161,768, of which PEPCO received $54,699. 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 has agreed to waive or reimburse each Fund's operating expenses until January 31, 2003, 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 $24,362 for Class A shares for the six months ended March 31, 2002. Deferred sales charges retained by PEPCO for the six months ended March 31, 2002 were $53,877 for Class B shares and $8,978 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, 2002, $350,971 was retained by the Distributor, $185,641 was paid out to unaffiliated participants and $4,702 was paid to W.S. Griffith Securities, Inc., an indirect subsidiary of PNX. 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, 2002, transfer agent fees were $233,613, of which PEPCO retained $30,907, which is net of fees paid to State Street. For the six months ended March 31, 2002, the Trust paid PXP Securities Corp., an indirect subsidiary of PNX, brokerage commissions of $6,965 in connection with portfolio transactions effected by it. At March 31, 2002, PNX and affiliates held Phoenix-Seneca Funds shares which aggregated the following: Aggregate Net Asset Shares Value ------ --------- Bond Fund, Class A ..................................... 11,909 $118,495 Bond Fund, Class B ..................................... 11,734 115,228 Bond Fund, Class C ..................................... 11,715 115,158 Mid-Cap "EDGE"(SM) Fund, Class B ....................... 7,389 131,306 Mid-Cap "EDGE"(SM) Fund, Class C ....................... 7,390 131,320 Real Estate Securities Fund, Class B ................... 8,911 120,477 Real Estate Securities Fund, Class C ................... 8,912 120,401 3. PURCHASE AND SALE OF SECURITIES Purchases and sales of securities during the six months ended March 31, 2002 (excluding U.S. Government and agency securities and short-term securities) aggregated the following: Purchases Sales ------------ ------------ Bond Fund ..................................... $ 40,318,252 $ 24,325,814 Mid-Cap "EDGE"(SM) Fund ....................... 145,735,526 118,133,030 Real Estate Securities Fund ................... 17,303,672 16,378,539 Purchases and sales of long-term U.S. Government and agency securities during the six months ended March 31, 2002, aggregated $65,668,839 and $85,589,784, respectively, for the Bond Fund. Written call option activity for the six months ended March 31, 2002 aggregated the following: Real Estate Securities Fund --------------------------- Number of Amount of Options Premiums --------- --------- Options outstanding at September 30, 2001 -- $ -- Options written 150 11,925 Options expired -- -- Options exercised (150) (11,925) ---- ------- Options outstanding at March 31, 2002 -- -- ==== ======= 4. CREDIT RISK AND CONCENTRATIONS 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. Certain funds invest a high percentage of their assets in specific sectors of the market in their pursuit of a greater investment return. Fluctuations in these sectors of concentration may have a greater impact to the fund, positive or negative, than if the fund did not concentrate its investments in such sectors. 5. OTHER As of March 31, 2002, the funds had omnibus shareholder accounts, comprised of several individual shareholders, which individually amounted to more than 10% of the total shares outstanding. None of the accounts are affiliated with PNX. Number of % of Shares Accounts Outstanding ------------------ ----------- Mid-Cap "EDGE"(SM) Fund .................. 2 Omnibus Accounts 28% Real Estate Securities Fund .............. 1 Omnibus Account 52% 26 PHOENIX-SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 2002 (UNAUDITED) (CONTINUED) 6. CAPITAL LOSS CARRYOVERS At September 30, 2001, the following funds have capital loss carryovers which may be used to offset future capital gains. Mid-Cap Real Estate Expiration Date "EDGE"(SM) Fund Securities Fund -------------------- --------------- --------------- 2009 ............................... $709,370 $ 818,561 2008 ............................... -- 1,109,072 2007 ............................... -- 24,701 For the year ended September 30, 2001, the Bond Fund utilized losses deferred in the prior year against current year capital gains in the amount of $314. 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, 2001, the Bond Fund and the Mid-Cap "EDGE"(SM) Fund deferred capital losses of $1,502,796 and $30,661,639, respectively. For the year ended September 30, 2001, the Bond Fund utilized prior year capital losses deferred of $185,546. 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. 27 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 Ronald K. Jacks, Vice President Richard D. Little, Vice President David Shapiro, Vice President G. Jeffrey Bohne, Secretary Nancy G. Curtiss, Treasurer 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 Mutual Fund Services 1-800-243-1574 Advisor Consulting Group 1-800-243-4361 Text Telephone 1-800-243-1926 Web site WWW.PHOENIXINVESTMENTS.COM ------------------------------------------------------------------------------ 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. ------------------------------------------------------------------------------ PHOENIX EQUITY PLANNING CORPORATION PO Box 150480 Hartford, CT 06115-0480 (LOGO) PHOENIX INVESTMENT PARTNERS [GRAPHIC OMITTED] 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 (5/02)