-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OCiXmAkOOolXIJz2AFpDnFQJWPcqAHoDE1nCHF7oUDSycuxNWy3Ega+jc5NMAVU0 DKALfaecV2+Zzpj93hpABA== 0000935069-03-000802.txt : 20030606 0000935069-03-000802.hdr.sgml : 20030606 20030606152455 ACCESSION NUMBER: 0000935069-03-000802 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030331 FILED AS OF DATE: 20030606 EFFECTIVENESS DATE: 20030606 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PHOENIX SENECA FUNDS CENTRAL INDEX KEY: 0001005020 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-07455 FILM NUMBER: 03735879 BUSINESS ADDRESS: STREET 1: 909 MONTGOMERY STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94133 BUSINESS PHONE: 415 677-1570 MAIL ADDRESS: STREET 1: 56 PROSPECT STREET STREET 2: P.O. BOX 150480 CITY: HARTFORD STATE: CT ZIP: 06115-0480 FORMER COMPANY: FORMER CONFORMED NAME: SENECA FUNDS DATE OF NAME CHANGE: 19951218 N-CSR 1 g7189.txt PHOENIX SENECA 2003 SAR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-7455 ---------------- Phoenix-Seneca Funds ---------------------------------------------------- (Exact name of registrant as specified in charter) 56 Prospect Street Hartford, CT 06115 ---------------------------------------------------- (Address of principal executive offices) (Zip code) PFPC Inc. 301 Bellevue Parkway Wilmington, DE 19809 ---------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 302-791-3197 ------------ Date of fiscal year end: September 30, 2003 ------------------ Date of reporting period: March 31, 2003 -------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. Semiannual Report March 31, 2003 (LOGO) o SENECA o [GRAPHIC OMITTED] Phoenix-Seneca Bond Fund Phoenix-Seneca Mid-Cap "EDGE"(SM) Fund Phoenix-Seneca Real Estate Securities Fund (LOGO) PHOENIX INVESTMENT PARTNERS, LTD. A MEMBER OF THE PHOENIX COMPANIES, INC. [GRAPHIC OMITTED] MESSAGE FROM THE CHAIRMAN DEAR SHAREHOLDER: We are in the throes of one of the most stubborn bear markets in history as we provide you with this financial summary for the six months ended March 31, 2003 for the Phoenix-Seneca Funds. While the bear market continues, you may consider the idea of giving up on investing altogether. However, in uncertain markets, how you react may be the difference between success and failure -- not just in recovering your losses, but in reaching your long-term goals. It is true that no one knows exactly what we can expect in the coming months. But, it is also true that the best balance of performance and protection requires discipline and diversification. As such, bond, stock, and real estate investment trust mutual funds could play important roles in your portfolio. Work with your financial advisor to build and maintain a portfolio that will help you achieve long-term success. To learn more about your investments and investing, visit PhoenixInvestments.com. Sincerely, /s/ PHILIP R. MCLOUGHLIN Philip R. McLoughlin Chairman, Phoenix Funds MARCH 31, 2003 - -------------------------------------------------------------------------------- Mutual funds are not insured by the FDIC; are not deposits or other obligations of a bank and are not guaranteed by a bank; and are subject to investment risks, including possible loss of the principal invested. - -------------------------------------------------------------------------------- 1 TABLE OF CONTENTS Phoenix-Seneca Bond Fund .................................................... 3 Phoenix-Seneca Mid-Cap "EDGE"(SM) Fund ...................................... 11 Phoenix-Seneca Real Estate Securities Fund .................................. 17 Notes to Financial Statements ............................................... 23 2 PHOENIX-SENECA BOND FUND INVESTMENTS AT MARCH 31, 2003 (UNAUDITED) PAR MOODY'S VALUE RATING (000) VALUE ------- ------ ----------- U.S. GOVERNMENT SECURITIES--7.7% U.S. TREASURY BONDS--3.7% U.S. Treasury Bonds 8%, 11/15/21(e) .......... Aaa $1,550 $ 2,160,010 U.S. Treasury Bonds 5.375%, 2/15/31(e) ....... Aaa 560 605,763 ----------- 2,765,773 ----------- U.S. TREASURY NOTES--4.0% U.S. Treasury Notes 1.625%, 3/31/05 .......... Aaa 440 440,928 U.S. Treasury Inflationary Notes 3.375%, 1/15/07(e)(f) ........................ Aaa 1,995 2,517,103 ----------- 2,958,031 ----------- - ----------------------------------------------------------------------------- TOTAL U.S. GOVERNMENT SECURITIES (IDENTIFIED COST $5,767,755) 5,723,804 - ----------------------------------------------------------------------------- AGENCY MORTGAGE-BACKED SECURITIES--23.7% Fannie Mae 6.50%, 3/25/16 .................... Aaa 545 571,739 Fannie Mae 6.50%, 7/25/18 .................... Aaa 90 95,094 Fannie Mae 6.50%, 10/15/18 ................... Aaa 525 555,587 Fannie Mae 6%, 10/25/20 ...................... Aaa 166 174,539 Fannie Mae 7.50%, 2/1/27 ..................... Aaa 1,240 1,326,124 Fannie Mae TBA 5.50%, 6/12/32 ................ Aaa 3,615 3,662,447 Freddie Mac 5.50%, '16-'22 ................... Aaa 4,699 4,965,156 Freddie Mac 6.50%, '17-'31 ................... Aaa 4,772 5,056,731 Freddie Mac 6%, 11/15/17 ..................... Aaa 345 362,238 Freddie Mac 6%, 4/15/20 ...................... Aaa 295 312,054 Freddie Mac 6%, 2/15/30 ...................... Aaa 44 45,976 Freddie Mac 1.83%, 3/15/32(c) ................ Aaa 416 417,352 - ----------------------------------------------------------------------------- TOTAL AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $17,399,090) 17,545,037 - ----------------------------------------------------------------------------- PAR MOODY'S VALUE RATING (000) VALUE ------- ------ ----------- AGENCY NON MORTGAGE-BACKED SECURITIES--2.1% Fannie Mae 7.125%, 2/15/05(e) ................ Aaa $1,380 $ 1,521,330 - ----------------------------------------------------------------------------- TOTAL AGENCY NON MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $1,517,741) 1,521,330 - ----------------------------------------------------------------------------- NON-AGENCY MORTGAGE-BACKED SECURITIES--19.0% Banc of America Commerical Mortgage, Inc. 00-1, A1A 7.109%, 11/15/31 .............. Aaa 599 669,926 Banc of America Funding Corp. 00-1, 1A12 6.75%, 11/20/32 ......................... AAA(d) 726 753,894 Bank of America Mortgage Security 03-3, 2A6 1.871%, 4/25/18(c) ................. Aaa 3,118 3,118,000 Bear Stearns Commercial Mortgage Security 99-WF2, A2 7.08%, 6/15/09 ........... Aaa 608 705,262 CDC Commercial Mortgage Trust 02-FX1, A1 5.252%, 5/15/19 ........................... Aaa 583 617,303 Cendant Mortgage Corp. 03-4, F 1.81%, 5/25/18(c) ................................... Aaa 490 490,000 Chase Manhattan Bank-First Union National Bank 7.439%, 7/15/09 ................ AAA(d) 565 665,304 Chase Mortgage Finance Corp. 6.50%, 5/25/32 ...................................... Aaa 421 429,925 Countrywide Alternative Loan Trust 6.50%, 7/25/32 ...................................... AAA(d) 818 842,095 Countrywide Alternative Loan Trust 1.855%, 8/25/32(c) ........................... AAA(d) 824 824,982 Countrywide Funding Corp. 6.875%, 3/25/24 ...................................... Aaa 1,442 1,465,519 Countrywide Home Loans 6.50%, 5/25/19 ........ Aaa 586 603,301 Household Home Equity Loan Trust 02-3A 1.734%, 8/20/12(c) ........................... Aaa 513 512,805 Household Home Equity Loan Trust 02-4A 1.834%, 10/20/32(c) .......................... Aaa 272 272,697 See Notes to Financial Statements 3 Phoenix-Seneca Bond Fund PAR MOODY'S VALUE RATING (000) VALUE ------- ------ ----------- Lehman Brothers Commercial Mortgage Trust 02-LLFA, A 1.56%, 6/16/04(c) ........... Aaa $ 22 $ 21,624 Long Beach Mortgage Trust 1.755%, 11/25/32(c) .................................. Aaa 565 566,155 Residential Accredit Loans, Inc. 1.905%, 7/25/32(c) ................................... Aaa 449 450,546 Salomon Brothers Mortgage Securities VII 00-C3, A2 6.592%, 12/18/33 ................... Aaa 473 535,074 Washington Mutual 6%, 11/20/29 ............... Aaa 509 517,096 - ----------------------------------------------------------------------------- TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $14,036,834) 14,061,508 - ----------------------------------------------------------------------------- CORPORATE BONDS--41.6% ADVERTISING--0.4% RH Donnelley Finance Corp. I 144A 8.875%, 12/15/10(b) .......................... B 90 99,675 RH Donnelley Finance Corp. I 144A 10.875%, 12/15/12(b) ......................... B 143 164,093 ----------- 263,768 ----------- AEROSPACE & DEFENSE--2.9% Goodrich Corp. 7.625%, 12/15/12 .............. Baa 867 909,524 Goodrich Corp. 7%, 4/15/38 ................... Baa 210 185,643 Raytheon Co. 6.30%, 3/15/05 .................. Baa 595 634,670 Raytheon Co. 8.30%, 3/1/10 ................... Baa 330 387,007 ----------- 2,116,844 ----------- AUTOMOBILE MANUFACTURERS--0.9% Daimlerchrysler NA Holdings 7.75%, 6/15/05 ...................................... A 380 417,958 Ford Motor Co. 7.45%, 7/16/31 ................ Baa 335 256,405 ----------- 674,363 ----------- BANKS--4.8% Archstone-Smith Trust 7.90%, 2/15/16 ......... Baa 191 220,419 Bank of America Corp. 5.125%, 11/15/14 ....... Aa 585 601,795 Colonial Bank 9.375%, 6/1/11 ................. Ba 338 380,675 Golden West Financial Corp. 4.75%, 10/1/12 ...................................... A 738 754,113 Sovereign Bancorp 144A 10.20%, 6/30/05(b) ................................... Baa 1,007 1,105,828 Wells Fargo & Co. 5.125%, 9/1/12 ............. Aa 480 501,407 ----------- 3,564,237 ----------- PAR MOODY'S VALUE RATING (000) VALUE ------- ------ ----------- BROADCASTING & CABLE TV--3.2% AMFM 8%, 11/1/08 ............................. Ba $ 999 $ 1,132,616 Clear Channel Communications, Inc. 7.875%, 6/15/05 .............................. Baa 80 88,133 Comcast Corp. 7.05%, 3/15/33 ................. Baa 125 127,868 Continental Cablevision, Inc. 8.875%, 9/15/05 ...................................... Baa 215 241,804 Cox Communications, Inc. 7.75%, 8/15/06 ...... Baa 370 417,055 Lenfest Communications, Inc. 10.50%, 6/15/06 ...................................... Ba 116 134,705 Turner Broadcasting System, Inc. 8.40%, 2/1/24 ....................................... Baa 207 222,601 ----------- 2,364,782 ----------- BUILDING PRODUCTS--0.5% American Standard, Inc. 7.625%, 2/15/10 ...... Ba 328 359,160 CASINOS & GAMING--0.2% Boyd Gaming Corp. 144A 7.75%, 12/15/12(b) .................................. B 157 158,963 CONSUMER FINANCE--2.3% American General Finance Corp. 4.50%, 11/15/07 ..................................... A 272 283,068 General Motors Acceptance Corp. 6.125%, 8/28/07 ...................................... A 311 318,933 General Motors Acceptance Corp. 6.875%, 9/15/11 ...................................... A 175 172,924 Household Finance Corp. 7.875%, 3/1/07 ....... A 87 100,107 MBNA America Bank NA 5.375%, 1/15/08 ......... Baa 789 815,082 ----------- 1,690,114 ----------- DIVERSIFIED COMMERCIAL SERVICES--0.4% Cendant Corp. 6.25%, 1/15/08 ................. Baa 256 264,051 DIVERSIFIED FINANCIAL SERVICES--3.9% Bear Stearns Co., Inc. 3%, 3/30/06 ........... A 735 741,921 CIT Group, Inc. 4.125%, 2/21/06 .............. A 375 375,469 Citigroup, Inc. 3.50%, 2/1/08 ................ Aa 695 696,270 Goldman Sachs Group, Inc. 6.125%, 2/15/33 ...................................... Aa 440 441,461 Lehman Brothers Holdings 4%, 1/22/08 ......... A 577 589,032 Morgan Stanley 3.625%, 4/1/08 ................ Aa 41 40,833 Morgan Stanley 6.75%, 4/15/11 ................ Aa 14 15,669 ----------- 2,900,655 ----------- See Notes to Financial Statements 4 Phoenix-Seneca Bond Fund PAR MOODY'S VALUE RATING (000) VALUE ------- ------ ----------- ELECTRIC UTILITIES--2.2% Alabama Power Co. 5.70%, 2/15/33 ............. A $ 315 $ 310,973 Pepco Holdings, Inc. 3.75%, 2/15/06 .......... Baa 857 875,609 Progress Energy, Inc. 6.75%, 3/1/06 .......... Baa 376 411,262 ----------- 1,597,844 ----------- ENVIRONMENTAL SERVICES--1.3% Waste Management, Inc. 6.50%, 11/15/08 ....... Ba 898 981,741 FOREST PRODUCTS--0.3% Weyerhaeuser Co. 6.875%, 12/15/33 ............ Baa 245 251,819 GAS UTILITIES--0.5% Nisource Finance Corp. 7.625%, 11/15/05 ...... Baa 336 371,159 GENERAL MERCHANDISE STORES--0.6% Target Corp. 7%, 7/15/31 ..................... A 375 422,925 HEALTH CARE FACILITIES--0.9% HCA, Inc. 7.125%, 6/1/06 ..................... Ba 555 595,776 HCA, Inc. 7%, 7/1/07 ......................... Ba 96 103,270 ----------- 699,046 ----------- HOMEBUILDING--1.1% D.R. Horton, Inc. 7.50%, 12/1/07 ............. Ba 368 379,040 KB Home 7.75%, 2/1/10 ........................ Ba 445 456,125 ----------- 835,165 ----------- HOTELS, RESORTS & CRUISE LINES--0.6% Hilton Hotels Corp. 7.625%, 12/1/12 .......... Ba 319 320,447 Royal Caribbean Cruises Ltd. 7.25%, 8/15/06 ...................................... Ba 5 4,700 Royal Caribbean Cruises Ltd. 8.75%, 2/2/11 ....................................... Ba 130 123,825 Royal Caribbean Cruises Ltd. 7.25%, 3/15/18 ...................................... Ba 22 17,435 ----------- 466,407 ----------- HOUSEHOLD APPLIANCES--0.2% Applica, Inc. 10%, 7/31/08 ................... B 116 121,800 HOUSEWARES & SPECIALTIES--0.3% American Greetings Corp. 6.10%, 8/1/28 ....... Ba 224 216,160 INDUSTRIAL CONGLOMERATES--0.5% General Electric Co. 5%, 2/1/13 .............. Aaa 382 390,655 INTEGRATED OIL & GAS--0.9% ConocoPhillips 3.625%, 10/15/07 .............. A 630 641,210 PAR MOODY'S VALUE RATING (000) VALUE ------- ------ ----------- INTEGRATED TELECOMMUNICATION SERVICES--4.0% Citizens Communications Co. 8.50%, 5/15/06 ...................................... Baa $ 483 $ 546,198 Citizens Communications Co. 9%, 8/15/31 ...... Baa 190 246,976 Sprint Capital Corp. 6%, 1/15/07 ............. Baa 543 548,430 Sprint Capital Corp. 8.75%, 3/15/32 .......... Baa 335 345,050 Verizon Global Funding Corp. 7.75%, 12/1/30 ...................................... A 1,087 1,307,092 ----------- 2,993,746 ----------- MANAGED HEALTH CARE--1.3% Unitedhealth Group, Inc. 6.60%, 12/1/03 ...... A 936 963,089 METAL & GLASS CONTAINERS--1.1% Ball Corp. 144A 6.875%, 12/15/12(b) .......... Ba 293 303,621 Owens-Brockway Glass Container, Inc. 8.875%, 2/15/09 .............................. B 298 309,175 Owens-Illinois, Inc. 7.15%, 5/15/05 ......... B 209 207,955 ----------- 820,751 ----------- MOVIES & ENTERTAINMENT--1.7% AOL Time Warner, Inc. 5.625%, 5/1/05 ......... Baa 316 329,347 AOL Time Warner, Inc. 7.625%, 4/15/31 ........ Baa 244 258,923 Time Warner, Inc. 9.125%, 1/15/13 ............ Baa 554 653,427 ----------- 1,241,697 ----------- PACKAGED FOODS & MEATS--1.8% Conagra Foods, Inc. 7.50%, 9/15/05 ........... Baa 660 736,347 Dean Foods Co. 8.15%, 8/1/07 ................. B 443 474,531 Dole Food Co. 6.375%, 10/1/05 ................ Ba 110 122,100 ----------- 1,332,978 ----------- PAPER PRODUCTS--0.6% International Paper Co. 8.125%, 7/8/05 ....... Baa 365 408,491 RESTAURANTS--1.1% Yum! Brands, Inc. 7.70%, 7/1/12 .............. Ba 748 811,580 TOBACCO--0.3% Dimon, Inc. 8.875%, 6/1/06 ................... Ba 75 76,875 Dimon, Inc. Series B 9.625%, 10/15/11 ........ Ba 131 144,100 ----------- 220,975 ----------- TRUCKING--0.3% Avis Group Holdings, Inc. 11%, 5/1/09 ........ Baa 169 188,646 See Notes to Financial Statements 5 Phoenix-Seneca Bond Fund PAR MOODY'S VALUE RATING (000) VALUE ------- ------ ----------- WIRELESS TELECOMMUNICATION SERVICES--0.5% AT&T Wireless Services, Inc. 7.35%, 3/1/06 ....................................... Baa $ 170 $ 187,012 AT&T Wireless Services, Inc. 8.75%, 3/1/31 ....................................... Baa 170 194,949 ----------- 381,961 ----------- - ----------------------------------------------------------------------------- TOTAL CORPORATE BONDS (IDENTIFIED COST $29,660,316) 30,716,782 - ----------------------------------------------------------------------------- FOREIGN GOVERNMENT SECURITIES--1.7% CHILE--0.8% Republic of Chile 7.125%, 1/11/12 ............ Baa 500 559,050 MEXICO--0.9% United Mexican States 6.375%, 1/16/13 ........ Baa 351 351,000 United Mexican States 8%, 9/24/22 ............ Baa 296 309,764 ----------- 660,764 ----------- - ----------------------------------------------------------------------------- TOTAL FOREIGN GOVERNMENT SECURITIES (IDENTIFIED COST $1,198,736) 1,219,814 - ----------------------------------------------------------------------------- FOREIGN CORPORATE BONDS--2.7% CANADA--2.2% Cascades, Inc. 144A 7.25%, 2/15/13(b) ........ Ba 296 309,320 Corus Entertainment, Inc. 8.75%, 3/1/12 ...... B 82 85,792 Rogers Cablesystems 10%, 3/15/05 ............. Ba 85 90,525 Telus Corp. 7.50%, 6/1/07 .................... Ba 559 592,540 Telus Corp. 8%, 6/1/11 ....................... Ba 536 570,840 ----------- 1,649,017 ----------- FRANCE--0.5% Crown Euro Holdings SA 144A 9.50%, 3/1/11(b) .................................... B 365 366,369 - ----------------------------------------------------------------------------- TOTAL FOREIGN CORPORATE BONDS (IDENTIFIED COST $1,888,075) 2,015,386 - ----------------------------------------------------------------------------- PAR MOODY'S VALUE RATING (000) VALUE ------- ------ ----------- CONVERTIBLE BONDS--0.9% SEMICONDUCTORS--0.9% Analog Devices, Inc. Cv. 4.75%, 10/1/05 ...... Baa $ 640 $ 646,400 - ----------------------------------------------------------------------------- TOTAL CONVERTIBLE BONDS (IDENTIFIED COST $638,778) 646,400 - ----------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--99.4% (IDENTIFIED COST $72,107,325) 73,450,061 - ----------------------------------------------------------------------------- SHORT-TERM OBLIGATIONS--10.1% U.S. TREASURY BILLS--5.4% U.S. Treasury Bills 1.10%, 4/10/03 .................... 3,116 3,115,143 U.S. Treasury Bills 1.135%, 4/10/03 ................... 845 844,761 ----------- 3,959,904 ----------- FEDERAL AGENCY SECURITIES--4.7% Fannie Mae 1.08%, 4/1/03 .............................. 400 400,000 Fannie Mae 1.20%, 4/9/03 .............................. 3,100 3,099,173 ----------- 3,499,173 ----------- - ----------------------------------------------------------------------------- TOTAL SHORT-TERM OBLIGATIONS (IDENTIFIED COST $7,459,077) 7,459,077 - ----------------------------------------------------------------------------- TOTAL INVESTMENTS--109.5% (IDENTIFIED COST $79,566,402) 80,909,138(a) Other assets and liabilities, net--(9.5)% (7,018,025) ----------- NET ASSETS--100.0% $73,891,113 =========== (a) Federal Income Tax Information: Net unrealized appreciation of investment securities is comprised of gross appreciation of $1,465,934 and gross depreciation of $123,198 for federal income tax purposes. At March 31,2003, the aggregate cost of securities for federal income tax purposes was $79,566,402. (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, 2003, these securities amounted to a value of $2,507,869 or 3.4% 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 delayed delivery contracts. (f) Principal amount is adjusted daily pursuant to the change in the Consumer Price Index. See Notes to Financial Statements 6 Phoenix-Seneca Bond Fund STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 2003 (UNAUDITED) ASSETS Investment securities at value (Identified cost $79,566,402) $80,909,138 Cash 22,272 Receivables Investment securities sold 2,692,485 Interest 746,257 Fund shares sold 245,571 Receivable from adviser 15 Prepaid expenses 620 ----------- Total assets 84,616,358 ----------- LIABILITIES Payables Investment securities purchased 9,386,910 Fund shares repurchased 1,191,606 Distribution and service fees 52,793 Investment advisory fee 27,763 Transfer agent fee 12,890 Financial agent fee 6,783 Accrued expenses 46,500 ----------- Total liabilities 10,725,245 ----------- NET ASSETS $73,891,113 =========== NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $72,751,569 Undistributed net investment income 258,635 Accumulated net realized loss (461,827) Net unrealized appreciation 1,342,736 ----------- NET ASSETS $73,891,113 =========== CLASS X Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $35,804,063) 3,374,754 Net asset value and offering price per share $10.61 CLASS A Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $21,539,402) 2,048,025 Net asset value per share $10.52 Offering price per share $10.52/(1-4.75%) $11.04 CLASS B Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $11,305,803) 1,092,931 Net asset value and offering price per share $10.34 CLASS C Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $5,241,845) 505,850 Net asset value and offering price per share $10.36 STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 2003 (UNAUDITED) INVESTMENT INCOME Interest $1,904,202 ---------- Total investment income 1,904,202 ---------- EXPENSES Investment advisory fee 190,659 Service fees, Class A 26,857 Distribution and service fees, Class B 53,252 Distribution and service fees, Class C 25,228 Financial agent fee 47,431 Transfer agent 45,709 Professional 25,741 Registration 21,979 Custodian 14,599 Printing 7,075 Trustees 3,481 Miscellaneous 9,663 ---------- Total expenses 471,674 Less expenses borne by investment adviser (30,410) Custodian fees paid indirectly (161) ---------- Net expenses 441,103 ---------- NET INVESTMENT INCOME 1,463,099 ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain on securities 1,833,407 Net change in unrealized appreciation (depreciation) on investments (119,628) ---------- NET GAIN ON INVESTMENTS 1,713,779 ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $3,176,878 ========== See Notes to Financial Statements 7 Phoenix-Seneca Bond Fund
STATEMENT OF CHANGES IN NET ASSETS Six Months Ended 3/31/03 Year Ended (Unaudited) 9/30/02 ------------ ----------- FROM OPERATIONS Net investment income (loss) $ 1,463,099 $ 3,519,396 Net realized gain (loss) 1,833,407 (781,445) Net change in unrealized appreciation (depreciation) (119,628) 1,729,657 ------------ ----------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 3,176,878 4,467,608 ------------ ----------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class X (910,983) (2,299,950) Net investment income, Class A (460,041) (840,732) Net investment income, Class B (195,644) (374,903) Net investment income, Class C (92,405) (186,987) Net realized short-term gains, Class X -- (726,361) Net realized short-term gains, Class A -- (276,722) Net realized short-term gains, Class B -- (134,769) Net realized short-term gains, Class C -- (67,218) ------------ ----------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (1,659,073) (4,907,642) ------------ ----------- FROM SHARE TRANSACTIONS CLASS X Proceeds from sales of shares (457,999 and 875,484 shares, respectively) 4,782,834 8,953,585 Net asset value of shares issued from reinvestment of distributions (79,985 and 286,441 shares, respectively) 832,005 2,919,131 Cost of shares repurchased (1,842,947 and 1,123,032 shares, respectively) (19,128,709) (11,438,951) ------------ ----------- Total (13,513,870) 433,765 ------------ ----------- CLASS A Proceeds from sales of shares (415,219 and 1,068,591 shares, respectively) 4,283,209 10,885,294 Net asset value of shares issued from reinvestment of distributions (32,732 and 67,268 shares, respectively) 338,142 680,360 Cost of shares repurchased (452,145 and 566,845 shares, respectively) (4,683,891) (5,743,494) ------------ ----------- Total (62,540) 5,822,160 ------------ ----------- CLASS B Proceeds from sales of shares (192,661 and 385,681 shares, respectively) 1,962,365 3,867,119 Net asset value of shares issued from reinvestment of distributions (13,281 and 34,119 shares, respectively) 134,946 340,424 Cost of shares repurchased (109,199 and 176,399 shares, respectively) (1,113,048) (1,759,987) ------------ ----------- Total 984,263 2,447,556 ------------ ----------- CLASS C Proceeds from sales of shares (144,486 and 246,752 shares, respectively) 1,474,187 2,471,471 Net asset value of shares issued from reinvestment of distributions (7,045 and 20,043 shares, respectively) 71,708 200,275 Cost of shares repurchased (143,553 and 143,299 shares, respectively) (1,458,396) (1,436,614) ------------ ----------- Total 87,499 1,235,132 ------------ ----------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (12,504,648) 9,938,613 ------------ ----------- NET INCREASE (DECREASE) IN NET ASSETS (10,986,843) 9,498,579 NET ASSETS Beginning of period 84,877,956 75,379,377 ------------ ----------- END OF PERIOD [INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $258,635 AND $454,609, RESPECTIVELY] $ 73,891,113 $84,877,956 ============ ===========
See Notes to Financial Statements 8 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, 3/31/03 ------------------------------------------------------------------- (UNAUDITED) 2002(10) 2001 2000 1999 1998 Net asset value, beginning of period $10.39 $10.44 $10.16 $10.35 $10.68 $10.47 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.21(1) 0.48(1) 0.70(1) 0.77(1) 0.69(1) 0.56 Net realized and unrealized gain (loss) 0.25 0.12 0.26 (0.18) (0.31) 0.40 ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 0.46 0.60 0.96 0.59 0.38 0.96 ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.24) (0.49) (0.68) (0.71) (0.62) (0.57) Distributions from net realized gains -- (0.16) -- (0.07) (0.09) (0.18) ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.24) (0.65) (0.68) (0.78) (0.71) (0.75) ------ ------ ------ ------ ------ ------ Change in net asset value 0.22 (0.05) 0.28 (0.19) (0.33) 0.21 ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $10.61 $10.39 $10.44 $10.16 $10.35 $10.68 ====== ====== ====== ====== ====== ====== Total return 4.49%(4) 5.94% 9.84% 6.17% 3.51% 9.44% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $35,804 $48,606 $48,448 $39,981 $34,853 $26,455 RATIO TO AVERAGE NET ASSETS OF: Operating expenses 0.86%(3)(7) 0.82%(8) 0.84%(8) 0.90%(5)(8) 1.06%(5)(7) 1.66% Net investment income 4.12%(3) 4.75% 6.79% 7.67% 6.60% 5.92% Portfolio turnover 145%(4) 410% 170% 74% 95% 112% CLASS A --------------------------------------------------------------------------------- SIX MONTHS FROM ENDED YEAR ENDED SEPTEMBER 30, INCEPTION 3/31/03 ------------------------------------------------ 7/1/98 TO (UNAUDITED) 2002(10) 2001 2000 1999 9/30/98 Net asset value, beginning of period $10.29 $10.37 $10.11 $10.29 $10.68 $10.79 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)(1) 0.20 0.44 0.67 0.75 0.59 0.13 Net realized and unrealized gain (loss) 0.25 0.11 0.26 (0.18) (0.33) (0.07) ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 0.45 0.55 0.93 0.57 0.26 0.06 ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.22) (0.47) (0.67) (0.68) (0.56) (0.17) Distributions from net realized gains -- (0.16) -- (0.07) (0.09) -- ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.22) (0.63) (0.67) (0.75) (0.65) (0.17) ------ ------ ------ ------ ------ ------ Change in net asset value 0.23 (0.08) 0.26 (0.18) (0.39) (0.11) ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $10.52 $10.29 $10.37 $10.11 $10.29 $10.68 ====== ====== ====== ====== ====== ====== Total return(2) 4.45%(4) 5.50% 9.54% 5.84% 2.46% 0.53%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $21,539 $21,127 $15,376 $7,335 $2,732 $348 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(6) 1.15%(3)(7) 1.15%(7) 1.15%(9) 1.15%(9) 1.88%(7) 2.45%(3) Net investment income 3.86%(3) 4.38% 6.42% 7.60% 5.80% 5.17%(3) Portfolio turnover 145%(4) 410% 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% and 3.41% for the periods ended September 30, 2000 and 1999, 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 1.21%, 1.22%, 1.27%, 1.81%, 4.08% and 8.99% for the periods ended March 31, 2003, September 30, 2002, 2001, 2000, 1999 and 1998, respectively. (7) 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 September 30, 2002, 2001 and 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 0.83%, 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%. (10) As required, effective October 1, 2001, the Fund has adopted the provisions of AICPA Audit and Accounting Guide for Investment Companies and began including paydown gains and losses in interest income. The effect of this change for the year ended September 30, 2002, was to decrease the ratio of net investment income to average net assets from 4.80% to 4.75% and from 4.44% to 4.38% for Class X and Class A, respectively; to decrease net investment income (loss) per share from 0.49 to 0.48 per share and from 0.45 to 0.44 per share for Class X and Class A, respectively; and, to increase net realized and unrealized gain (loss) from 0.11 to 0.12 per share and from 0.10 to 0.11 per share for Class X and Class A, respectively. Per share ratios and supplemental data for prior periods have not been restated to reflect this change.
See Notes to Financial Statements 9 Phoenix-Seneca Bond Fund
FINANCIAL HIGHLIGHTS (SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD) CLASS B --------------------------------------------------------------------------------- SIX MONTHS FROM ENDED YEAR ENDED SEPTEMBER 30, INCEPTION 3/31/03 ----------------------------------------------- 7/1/98 TO (UNAUDITED) 2002(9) 2001 2000 1999 9/30/98 Net asset value, beginning of period $10.13 $10.25 $10.04 $10.27 $10.67 $10.79 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)(1) 0.16 0.36 0.57 0.68 0.52 0.11 Net realized and unrealized gain (loss) 0.24 0.11 0.28 (0.20) (0.33) (0.08) ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 0.40 0.47 0.85 0.48 0.19 0.03 ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.19) (0.43) (0.64) (0.64) (0.50) (0.15) Distributions from net realized gains -- (0.16) -- (0.07) (0.09) -- ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.19) (0.59) (0.64) (0.71) (0.59) (0.15) ------ ------ ------ ------ ------ ------ Change in net asset value 0.21 (0.12) 0.21 (0.23) (0.40) (0.12) ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $10.34 $10.13 $10.25 $10.04 $10.27 $10.67 ====== ====== ====== ====== ====== ====== Total return(2) 3.96%(4) 4.83% 8.67% 5.06% 1.67% 0.28%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $11,306 $10,093 $7,713 $3,086 $1,593 $234 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(5) 1.90%(3)(7) 1.90%(7) 1.90%(8) 1.90%(8) 2.62%(7) 3.20%(3) Net investment income 3.11%(3) 3.63% 5.64% 6.83% 5.09% 4.42%(3) Portfolio turnover 145%(4) 410% 170% 74% 95% 112%(4) CLASS C --------------------------------------------------------------------------------- SIX MONTHS FROM ENDED YEAR ENDED SEPTEMBER 30, INCEPTION 3/31/03 ----------------------------------------------- 7/1/98 TO (UNAUDITED) 2002(9) 2001 2000 1999 9/30/98 Net asset value, beginning of period $10.15 $10.26 $10.06 $10.27 $10.67 $10.79 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)(1) 0.16 0.36 0.58 0.69 0.49 0.10 Net realized and unrealized gain (loss) 0.24 0.12 0.26 (0.20) (0.30) (0.07) ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 0.40 0.48 0.84 0.49 0.19 0.03 ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.19) (0.43) (0.64) (0.63) (0.50) (0.15) Distributions from net realized gains -- (0.16) -- (0.07) (0.09) -- ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.19) (0.59) (0.64) (0.70) (0.59) (0.15) ------ ------ ------ ------ ------ ------ Change in net asset value 0.21 (0.11) 0.20 (0.21) (0.40) (0.12) ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $10.36 $10.15 $10.26 $10.06 $10.27 $10.67 ====== ====== ====== ====== ====== ====== Total return(2) 3.95%(4) 4.83% 8.65% 5.12% 1.66% 0.28%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $5,242 $5,052 $3,842 $1,957 $444 $439 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(6) 1.90%(3)(7) 1.90%(7) 1.90%(8) 1.90%(8) 2.91%(7) 3.20%(3) Net investment income 3.10%(3) 3.63% 5.69% 6.88% 4.71% 4.27%(3) Portfolio turnover 145%(4) 410% 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 2.11%, 2.16%, 2.35%, 3.08%, 5.67% and 15.79% for the periods ended March 31, 2003, September 30, 2002, 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 2.41%, 2.50%, 2.78%, 4.08%, 9.50% and 11.22% for the periods ended March 31, 2003, September 30, 2002, 2001, 2000, 1999 and 1998, respectively. (7) 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%. (9) As required, effective October 1, 2001, the Fund has adopted the provisions of AICPA Audit and Accounting Guide for Investment Companies and began including paydown gains and losses in interest income. The effect of this change for the year ended September 30, 2002, was to decrease the ratio of net investment income to average net assets from 3.69% to 3.63% for Class B and Class C; to decrease net investment income (loss) per share from 0.37 to 0.36 per share for Class B and Class C; and, to increase net realized and unrealized gain (loss) from 0.10 to 0.11 per share and from 0.11 to 0.12 per share for Class B and Class C, respectively. Per share ratios and supplemental data for prior periods have not been restated to reflect this change.
See Notes to Financial Statements 10 PHOENIX-SENECA MID-CAP "EDGE"(SM) FUND INVESTMENTS AT MARCH 31, 2003 (UNAUDITED) SHARES VALUE -------- ------------ COMMON STOCKS--93.3% ADVERTISING--2.7% Lamar Advertising Co.(b) ....................... 109,690 $ 3,219,401 APPLICATION SOFTWARE--4.3% BEA Systems, Inc.(b) ........................... 224,420 2,286,840 PeopleSoft, Inc.(b) ............................ 188,840 2,889,252 ------------ 5,176,092 ------------ BANKS--2.6% Charter One Financial, Inc. .................... 114,093 3,155,812 BIOTECHNOLOGY--6.9% Gilead Sciences, Inc.(b) ....................... 118,570 4,978,754 MedImmune, Inc.(b) ............................. 102,310 3,358,837 ------------ 8,337,591 ------------ BROADCASTING & CABLE TV--2.7% Univision Communications, Inc. Class A(b) ...... 130,420 3,196,594 COMPUTER & ELECTRONICS RETAIL--2.0% Best Buy Co., Inc.(b) .......................... 87,910 2,370,933 COMPUTER STORAGE & PERIPHERALS--2.7% Network Appliance, Inc.(b) ..................... 291,230 3,258,864 ELECTRONIC EQUIPMENT & INSTRUMENTS--3.7% Jabil Circuit, Inc.(b) ......................... 257,590 4,507,825 FOOD RETAIL--3.1% Whole Foods Market, Inc.(b) .................... 66,540 3,702,286 HEALTH CARE DISTRIBUTORS & SERVICES--3.1% AmerisourceBergen Corp. ........................ 71,400 3,748,500 HEALTH CARE EQUIPMENT--5.1% Becton, Dickinson and Co. ...................... 106,680 3,674,059 Stryker Corp. .................................. 35,340 2,426,091 ------------ 6,100,150 ------------ HOUSEHOLD PRODUCTS--2.4% Clorox Co. (The) ............................... 62,470 2,884,240 HOUSEWARES & SPECIALTIES--3.0% Newell Rubbermaid, Inc. ........................ 129,670 3,676,144 INTERNET RETAIL--2.2% Amazon.com, Inc.(b) ............................ 102,820 2,676,405 INTERNET SOFTWARE & SERVICES--3.5% Yahoo! Inc.(b) ................................. 176,460 4,238,569 SHARES VALUE -------- ------------ MANAGED HEALTH CARE--3.3% WellPoint Health Networks, Inc.(b) ............. 51,760 $ 3,972,580 METAL & GLASS CONTAINERS--4.3% Ball Corp. ..................................... 46,190 2,572,783 Pactiv Corp.(b) ................................ 127,500 2,588,250 ------------ 5,161,033 ------------ NETWORKING EQUIPMENT--1.4% Emulex Corp.(b) ................................ 88,800 1,700,520 OIL & GAS DRILLING--2.4% Noble Corp.(b) ................................. 93,180 2,927,716 OIL & GAS EQUIPMENT & SERVICES--1.9% Cooper Cameron Corp.(b) ........................ 46,870 2,320,534 PERSONAL PRODUCTS--2.1% Estee Lauder Cos., Inc. (The) Class A .......... 84,950 2,579,082 PHARMACEUTICALS--2.2% Allergan, Inc. ................................. 38,910 2,654,051 PROPERTY & CASUALTY INSURANCE--2.8% SAFECO Corp. ................................... 95,140 3,327,046 SEMICONDUCTOR EQUIPMENT--3.4% KLA-Tencor Corp.(b) ............................ 113,780 4,089,481 SEMICONDUCTORS--5.9% Altera Corp.(b) ................................ 342,060 4,631,492 Broadcom Corp. Class A(b) ...................... 204,790 2,529,157 ------------ 7,160,649 ------------ SOFT DRINKS--2.0% Pepsi Bottling Group, Inc. (The) ............... 137,640 2,467,885 SPECIALTY CHEMICALS--2.6% Ecolab, Inc. ................................... 63,030 3,109,270 SPECIALTY STORES--9.0% Bed Bath & Beyond, Inc.(b) ..................... 92,620 3,199,095 Staples, Inc.(b) ............................... 174,700 3,202,251 Weight Watchers International, Inc.(b) ......... 95,490 4,397,314 ------------ 10,798,660 ------------ - ----------------------------------------------------------------------------- TOTAL COMMON STOCKS (IDENTIFIED COST $118,013,493) 112,517,913 - ----------------------------------------------------------------------------- See Notes to Financial Statements 11 Phoenix-Seneca Mid-Cap "EDGE"(SM) Fund SHARES VALUE -------- ------------ FOREIGN COMMON STOCKS--4.1% PHARMACEUTICALS--4.1% Biovail Corp. (Canada)(b) ...................... 123,660 $ 4,930,324 - ----------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $5,146,901) 4,930,324 - ----------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--97.4% (IDENTIFIED COST $123,160,394) 117,448,237 - ----------------------------------------------------------------------------- PAR VALUE (000) ------ SHORT-TERM OBLIGATIONS--3.5% REPURCHASE AGREEMENTS--3.5% State Street Bank & Trust Co. repurchase agreement, 0.25% dated 3/31/03 due 4/1/03, repurchase price $4,262,030 collateralized by U.S. Treasury Bill 0%, 8/28/03, market value $4,350,335 ............................... $4,262 4,262,000 - ----------------------------------------------------------------------------- TOTAL SHORT-TERM OBLIGATIONS (IDENTIFIED COST $4,262,000) 4,262,000 - ----------------------------------------------------------------------------- TOTAL INVESTMENTS--100.9% (IDENTIFIED COST $127,422,394) 121,710,237(a) Other assets and liabilities, net--(0.9)% (1,086,442) ------------ NET ASSETS--100.0% $120,623,795 ============ (a) Federal Income Tax Information: Net unrealized depreciation of investment securities is comprised of gross appreciation of $7,680,210 and gross depreciation of $13,392,367 for federal income tax purposes. At March 31, 2003, the aggregate cost of securities for federal income tax purposes was $127,422,394. (b) Non-income producing. See Notes to Financial Statements 12 Phoenix-Seneca Mid-Cap "EDGE"(SM) Fund STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 2003 (UNAUDITED) ASSETS Investment securities at value (Identified cost $127,422,394) $121,710,237 Cash 193 Receivables Investment securities sold 726,301 Fund shares sold 102,016 Dividends and interest 9,169 Prepaid expenses 1,195 ------------ Total assets 122,549,111 ------------ LIABILITIES Payables Fund shares repurchased 1,073,711 Investment securities purchased 488,729 Distribution and service fees 165,010 Investment advisory fee 63,094 Transfer agent fee 61,991 Financial agent fee 9,130 Payable to adviser 6,145 Accrued expenses 57,506 ------------ Total liabilities 1,925,316 ------------ NET ASSETS $120,623,795 ============ NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $223,365,883 Accumulated net investment loss (832,251) Accumulated net realized loss (96,197,680) Net unrealized depreciation (5,712,157) ------------ NET ASSETS $120,623,795 ============ CLASS X Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $13,526,301) 1,083,148 Net asset value and offering price per share $12.49 CLASS A Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $56,729,511) 4,643,521 Net asset value per share $12.22 Offering price per share $12.22/(1-5.75%) $12.97 CLASS B Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $21,249,971) 1,815,689 Net asset value and offering price per share $11.70 CLASS C Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $29,118,012) 2,488,439 Net asset value and offering price per share $11.70 STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 2003 (UNAUDITED) INVESTMENT INCOME Dividends $ 250,382 Interest 11,585 ------------ Total investment income 261,967 ------------ EXPENSES Investment advisory fee 519,832 Service fees, Class A 80,313 Distribution and service fees, Class B 112,133 Distribution and service fees, Class C 155,063 Financial agent fee 66,163 Transfer agent 186,155 Printing 35,156 Professional 25,998 Registration 24,739 Custodian 8,698 Trustees 3,481 Miscellaneous 10,467 ------------ Total expenses 1,228,198 Less expenses borne by investment adviser (133,980) ------------ Net expenses 1,094,218 ------------ NET INVESTMENT LOSS (832,251) ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized loss on securities (22,725,438) Net change in unrealized appreciation (depreciation) on investments 22,814,613 ------------ NET GAIN ON INVESTMENTS 89,175 ------------ NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (743,076) ============ See Notes to Financial Statements 13 Phoenix-Seneca Mid-Cap "EDGE"(SM) Fund
STATEMENT OF CHANGES IN NET ASSETS Six Months Ended 3/31/03 Year Ended (Unaudited) 9/30/02 ------------ ------------ FROM OPERATIONS Net investment income (loss) $ (832,251) $ (2,144,534) Net realized gain (loss) (22,725,438) (41,965,558) Net change in unrealized appreciation (depreciation) 22,814,613 3,627,837 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (743,076) (40,482,255) ------------ ------------ FROM SHARE TRANSACTIONS CLASS X Proceeds from sales of shares (374,980 and 245,953 shares, respectively) 4,785,941 4,301,629 Cost of shares repurchased (188,785 and 253,619 shares, respectively) (2,363,721) (4,129,658) ------------ ------------ Total 2,422,220 171,971 ------------ ------------ CLASS A Proceeds from sales of shares (832,290 and 3,287,089 shares, respectively) 10,459,548 55,903,216 Cost of shares repurchased (1,607,068 and 2,177,539 shares, respectively) (19,872,279) (35,463,581) ------------ ------------ Total (9,412,731) 20,439,635 ------------ ------------ CLASS B Proceeds from sales of shares (159,596 and 720,227 shares, respectively) 1,924,469 11,693,404 Cost of shares repurchased (260,331 and 378,710 shares, respectively) (3,090,060) (5,666,375) ------------ ------------ Total (1,165,591) 6,027,029 ------------ ------------ CLASS C Proceeds from sales of shares (229,048 and 1,318,694 shares, respectively) 2,755,236 21,920,511 Cost of shares repurchased (399,534 and 728,101 shares, respectively) (4,728,550) (11,582,879) ------------ ------------ Total (1,973,314) 10,337,632 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (10,129,416) 36,976,267 ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS (10,872,492) (3,505,988) NET ASSETS Beginning of period 131,496,287 135,002,275 ------------ ------------ END OF PERIOD [INCLUDING ACCUMULATED NET INVESTMENT LOSS OF ($832,251) AND $0, RESPECTIVELY] $120,623,795 $131,496,287 ============ ============
See Notes to Financial Statements 14 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, 3/31/03 ---------------------------------------------------------------- (UNAUDITED) 2002 2001 2000 1999 1998 Net asset value, beginning of period $12.51 $15.70 $31.18 $17.78 $13.81 $16.47 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)(1) (0.05) (0.13) (0.14) (0.19) (0.21) (0.23) Net realized and unrealized gain (loss) 0.03 (3.06) (12.91) 15.65 4.72 (0.58) ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS (0.02) (3.19) (13.05) 15.46 4.51 (0.81) ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Distributions from net realized gains -- -- (2.43) (2.06) (0.54) (1.85) ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS -- -- (2.43) (2.06) (0.54) (1.85) ------ ------ ------ ------ ------ ------ Change in net asset value (0.02) (3.19) (15.48) 13.40 3.97 (2.66) ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $12.49 $12.51 $15.70 $31.18 $17.78 $13.81 ====== ====== ====== ====== ====== ====== Total return (0.16)%(7) (20.32)% (44.25)% 91.81 % 33.02 % (4.22)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $13,526 $11,219 $14,198 $23,016 $10,640 $8,940 RATIO TO AVERAGE NET ASSETS OF: Operating expenses 1.15 %(3)(6) 1.15 %(3) 1.15 %(3)(5) 1.27 %(3) 1.96 % 2.10 %(3) Net investment income (loss) (0.75)%(6) (0.75)% (0.61)% (0.72)% (1.27)% (1.49)% Portfolio turnover 65 %(7) 135 % 96 % 124 % 192 % 206 % CLASS A ---------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, 3/31/03 ---------------------------------------------------------------- (UNAUDITED) 2002 2001 2000 1999 1998 Net asset value, beginning of period $12.25 $15.41 $30.75 $17.60 $13.75 $16.49 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)(1) (0.06) (0.16) (0.19) (0.24) (0.31) (0.30) Net realized and unrealized gain (loss) 0.03 (3.00) (12.72) 15.45 4.70 (0.59) ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS (0.03) (3.16) (12.91) 15.21 4.39 (0.89) ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Distributions from net realized gains -- -- (2.43) (2.06) (0.54) (1.85) ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS -- -- (2.43) (2.06) (0.54) (1.85) ------ ------ ------ ------ ------ ------ Change in net asset value (0.03) (3.16) (15.34) 13.15 3.85 (2.74) ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $12.22 $12.25 $15.41 $30.75 $17.60 $13.75 ====== ====== ====== ====== ====== ====== Total return(2) (0.24)%(7) (20.51)% (44.42)% 91.30 % 32.27 % (4.74)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $56,730 $66,384 $66,411 $50,150 $6,457 $3,666 RATIO TO AVERAGE NET ASSETS OF: Operating expenses 1.40 %(4)(6) 1.40 %(4) 1.40 %(4)(5) 1.47 %(4) 2.51 % 2.70 %(4) Net investment income (loss) (1.00)%(6) (0.99)% (0.86)% (0.91)% (1.81)% (1.95)% Portfolio turnover 65 %(7) 135 % 96 % 124 % 192 % 206 % (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 1.32%, 1.24%, 1.22%, 1.43% and 2.38% for the periods ended March 31, 2003, September 30, 2002, 2001, 2000 and 1998, 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 1.58%, 1.46%, 1.40%, 1.59% and 2.74% for the periods ended March 31, 2003, September 30, 2002, 2001, 2000 and 1998, 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 15 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 3/31/03 ----------------------------------------------- 7/1/98 TO (UNAUDITED) 2002 2001 2000 1999 9/30/98 Net asset value, beginning of period $11.78 $14.93 $30.09 $17.41 $13.73 $17.15 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)(1) (0.10) (0.28) (0.34) (0.45) (0.47) (0.09) Net realized and unrealized gain (loss) 0.02 (2.87) (12.39) 15.19 4.69 (3.33) ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS (0.08) (3.15) (12.73) 14.74 4.22 (3.42) ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Distributions from net realized gains -- -- (2.43) (2.06) (0.54) -- ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS -- -- (2.43) (2.06) (0.54) -- ------ ------ ------ ------ ------ ------ Change in net asset value (0.08) (3.15) (15.16) 12.68 3.68 (3.42) ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $11.70 $11.78 $14.93 $30.09 $17.41 $13.73 ====== ====== ====== ====== ====== ====== Total return(2) (0.68)%(4) (21.10)% (44.83)% 89.49 % 31.05 % (19.94)%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $21,250 $22,577 $23,519 $15,879 $1,676 $145 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(5) 2.15 %(3) 2.15 % 2.15 %(7) 2.29 % 3.45 % 3.45 %(3) Net investment income (loss) (1.75)%(3) (1.74)% (1.61)% (1.73)% (2.78)% (2.45)%(3) Portfolio turnover 65 %(4) 135 % 96 % 124 % 192 % 206 %(4) CLASS C ----------------------------------------------------------------------------- SIX MONTHS FROM ENDED YEAR ENDED SEPTEMBER 30, INCEPTION 3/31/03 ----------------------------------------------- 7/1/98 TO (UNAUDITED) 2002 2001 2000 1999 9/30/98 Net asset value, beginning of period $11.78 $14.93 $30.08 $17.40 $13.72 $17.15 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)(1) (0.10) (0.28) (0.34) (0.45) (0.47) (0.09) Net realized and unrealized gain (loss) 0.02 (2.87) (12.38) 15.19 4.69 (3.34) ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS (0.08) (3.15) (12.72) 14.74 4.22 (3.43) ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Distributions from net realized gains -- -- (2.43) (2.06) (0.54) -- ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS -- -- (2.43) (2.06) (0.54) -- ------ ------ ------ ------ ------ ------ Change in net asset value (0.08) (3.15) (15.15) 12.68 3.68 (3.43) ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $11.70 $11.78 $14.93 $30.08 $17.40 $13.72 ====== ====== ====== ====== ====== ====== Total return(2) (0.68)%(4) (21.10)% (44.81)% 89.54 % 31.07 % (20.00)%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $29,118 $31,317 $30,874 $18,218 $975 $103 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(6) 2.15 %(3) 2.15 % 2.15 %(7) 2.25 % 3.45 % 3.45 %(3) Net investment income (loss) (1.75)%(3) (1.74)% (1.61)% (1.68)% (2.78)% (2.44)%(3) Portfolio turnover 65 %(4) 135 % 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 2.51%, 2.43%, 2.34%, 2.70%, 6.33% and 20.80% for the periods ended March 31, 2003, September 30, 2002, 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 2.30%, 2.21%, 2.20%, 2.65%, 9.03% and 21.14% for the periods ended March 31, 2003, September 30, 2002, 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 16 PHOENIX-SENECA REAL ESTATE SECURITIES FUND INVESTMENTS AT MARCH 31, 2003 (UNAUDITED) SHARES VALUE -------- ----------- COMMON STOCKS--87.4% REAL ESTATE INVESTMENT TRUSTS--55.2% DIVERSIFIED--5.6% iStar Financial, Inc. .......................... 39,450 $ 1,150,757 INDUSTRIAL/OFFICE--7.8% MIXED--3.0% Reckson Associates Realty Corp. ................ 33,050 621,340 OFFICE--4.8% Equity Office Properties Trust ................. 24,445 622,125 Trizec Properties, Inc. ........................ 42,500 361,250 ----------- 983,375 ----------- - ----------------------------------------------------------------------------- TOTAL INDUSTRIAL/OFFICE 1,604,715 - ----------------------------------------------------------------------------- MORTGAGE--13.0% COMMERCIAL FINANCING--4.3% Newcastle Investment Corp. ..................... 52,900 885,017 HOME FINANCING--8.7% Impac Mortgage Holdings, Inc. .................. 27,900 362,421 Redwood Trust, Inc. ............................ 44,500 1,446,250 ----------- 1,808,671 ----------- - ----------------------------------------------------------------------------- TOTAL MORTGAGE 2,693,688 - ----------------------------------------------------------------------------- RESIDENTIAL--22.9% APARTMENTS--15.2% Archstone-Smith Trust .......................... 27,546 604,910 Avalonbay Communities, Inc. .................... 14,850 547,965 Equity Residential ............................. 27,400 659,518 Essex Property Trust, Inc. ..................... 10,250 535,563 Post Properties, Inc. .......................... 32,700 789,705 ----------- 3,137,661 ----------- MANUFACTURED HOMES--7.7% Chateau Communities, Inc. ...................... 39,700 748,345 Manufactured Home Communities, Inc. ............ 28,200 834,720 ----------- 1,583,065 ----------- - ----------------------------------------------------------------------------- TOTAL RESIDENTIAL 4,720,726 - ----------------------------------------------------------------------------- SHARES VALUE -------- ----------- RETAIL--5.9% REGIONAL MALLS--5.9% Simon Property Group, Inc. ..................... 34,115 $ 1,222,340 - ----------------------------------------------------------------------------- TOTAL REAL ESTATE INVESTMENT TRUSTS (IDENTIFIED COST $11,091,835) 11,392,226 - ----------------------------------------------------------------------------- REAL ESTATE OPERATING COMPANIES--2.4% DIVERSIFIED--2.4% Northstar Capital Investment Corp. 144A(b)(c)(d)(e) ............................. 35,000 490,000 - ----------------------------------------------------------------------------- TOTAL REAL ESTATE OPERATING COMPANIES (IDENTIFIED COST $720,625) 490,000 - ----------------------------------------------------------------------------- BANKS--4.8% Washington Mutual, Inc. ........................ 21,500 758,305 Westcorp ....................................... 11,900 220,983 ----------- (Identified cost $959,941) 979,288 ----------- BUILDING PRODUCTS--3.3% Masco Corp. .................................... 37,000 688,940 (Identified cost $930,650) CONSUMER FINANCE--1.4% United PanAm Financial Corp.(b) ................ 35,800 284,968 (Identified cost $249,884) DIVERSIFIED COMMERCIAL SERVICES--4.9% Cendant Corp.(b) ............................... 80,000 1,016,000 (Identified cost $1,197,780) DIVERSIFIED FINANCIAL SERVICES--15.4% Fannie Mae ..................................... 20,000 1,307,000 Freddie Mac .................................... 20,000 1,062,000 J.P. Morgan Chase & Co. ........................ 34,500 817,995 ----------- (Identified cost $3,929,735) 3,186,995 ----------- - ----------------------------------------------------------------------------- TOTAL COMMON STOCKS (IDENTIFIED COST $19,080,450) 18,038,417 - ----------------------------------------------------------------------------- See Notes to Financial Statements 17 Phoenix-Seneca Real Estate Securities Fund SHARES VALUE -------- ----------- CONVERTIBLE PREFERRED STOCKS--10.0% REAL ESTATE INVESTMENT TRUSTS--10.0% INDUSTRIAL/OFFICE--10.0% MIXED--4.6% Reckson Associates Realty Corp. Series A Cv. Pfd. 7.625% ................................ 40,000 $ 946,000 OFFICE--5.4% Glenborough Realty Trust, Inc. Series A Cv. Pfd. 7.75% ................................. 51,950 1,127,315 - ----------------------------------------------------------------------------- TOTAL CONVERTIBLE PREFERRED STOCKS (IDENTIFIED COST $1,907,513) 2,073,315 - ----------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--97.4% (IDENTIFIED COST $20,987,963) 20,111,732 - ----------------------------------------------------------------------------- PAR VALUE (000) VALUE ----- ----------- SHORT-TERM OBLIGATIONS--4.6% REPURCHASE AGREEMENTS--4.6% State Street Bank & Trust Co. repurchase agreement, 0.25%, dated 3/31/03, due 4/1/03, repurchase price $949,007, collateralized by U.S. Treasury Bill 0%, 8/28/03, market value $970,613 ................................. $949 $ 949,000 - ----------------------------------------------------------------------------- TOTAL SHORT-TERM OBLIGATIONS (IDENTIFIED COST $949,000) 949,000 - ----------------------------------------------------------------------------- TOTAL INVESTMENTS--102.0% (IDENTIFIED COST $21,936,963) 21,060,732(a) Other assets and liabilities, net--(2.0)% (415,528) ----------- NET ASSETS--100.0% $20,645,204 =========== (a) Federal Income Tax Information: Net unrealized depreciation of investment securities is comprised of gross appreciation of $1,922,792 and gross depreciation of $2,885,138 for federal income tax purposes. At March 31, 2003, the aggregate cost of securities for federal income tax purposes was $22,023,078. (b) Non income-producing. (c) 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, 2003, these securities amounted to a value of $490,000 or 2.4% of net assets. (e) Illiquid. See Notes to Financial Statements 18 Phoenix-Seneca Real Estate Securities Fund STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 2003 (UNAUDITED) ASSETS Investment securities at value, (Identified cost $21,936,963) $21,060,732 Cash 775 Receivables Dividends and interest 155,567 Fund shares sold 148,405 Investment securities sold 41,679 Receivable from adviser 5 Prepaid expenses 175 ----------- Total assets 21,407,338 ----------- LIABILITIES Payables Investment securities purchased 512,275 Fund shares repurchased 181,917 Investment advisory fee 12,254 Transfer agent fee 10,661 Distribution and service fees 6,179 Financial agent fee 4,225 Accrued expenses 34,623 ----------- Total liabilities 762,134 ----------- NET ASSETS $20,645,204 =========== NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $21,968,353 Distributions in excess of net investment income (8,663) Accumulated net realized loss (438,255) Net unrealized depreciation (876,231) ----------- NET ASSETS $20,645,204 =========== CLASS X Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $16,436,656) 1,336,218 Net asset value and offering price per share $12.30 CLASS A Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $2,250,927) 187,603 Net asset value per share $12.00 Offering price per share $12.00/(1-5.75%) $12.73 CLASS B Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $812,473) 67,923 Net asset value and offering price per share $11.96 CLASS C Shares of beneficial interest outstanding, $1 par value, unlimited authorization (Net Assets $1,145,148) 95,664 Net asset value and offering price per share $11.97 STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 2003 (UNAUDITED) INVESTMENT INCOME Dividends $642,287 Interest 2,529 -------- Total investment income 644,816 -------- EXPENSES Investment advisory fee 91,858 Service fees, Class A 3,066 Distribution and service fees, Class B 4,310 Distribution and service fees, Class C 5,610 Financial agent fee 27,483 Transfer agent 39,743 Registration 19,537 Professional 19,003 Printing 5,155 Custodian 3,914 Trustees 3,481 Miscellaneous 4,160 -------- Total expenses 227,320 Less expenses borne by investment adviser (15,877) -------- Net expenses 211,443 -------- NET INVESTMENT INCOME 433,373 -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain on securities 337,682 Net realized gain on written options 37,557 Net change in unrealized appreciation (depreciation) on investments (6,235) -------- NET GAIN ON INVESTMENTS 369,004 -------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $802,377 ======== See Notes to Financial Statements 19 Phoenix-Seneca Real Estate Securities Fund
STATEMENT OF CHANGES IN NET ASSETS Six Months Ended 3/31/03 Year Ended (Unaudited) 9/30/02 ----------- ----------- FROM OPERATIONS Net investment income (loss) $ 433,373 $ 812,174 Net realized gain (loss) 375,239 1,276,254 Net change in unrealized appreciation (depreciation) (6,235) (2,150,646) ----------- ----------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 802,377 (62,218) ----------- ----------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class X (379,667) (799,965) Net investment income, Class A (39,703) (72,548) Net investment income, Class B (9,714) (16,495) Net investment income, Class C (12,952) (16,756) ----------- ----------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (442,036) (905,764) ----------- ----------- FROM SHARE TRANSACTIONS CLASS X Proceeds from sales of shares (22,996 and 410,208 shares, respectively) 280,364 5,303,637 Net asset value of shares issued from reinvestment of distributions (29,727 and 58,066 shares, respectively) 365,587 760,765 Cost of shares repurchased (173,421 and 386,311 shares, respectively) (2,091,664) (5,169,932) ----------- ----------- Total (1,445,713) 894,470 ----------- ----------- CLASS A Proceeds from sales of shares (154,622 and 177,962 shares, respectively) 1,812,430 2,296,733 Net asset value of shares issued from reinvestment of distributions (2,805 and 4,974 shares, respectively) 33,656 63,526 Cost of shares repurchased (183,222 and 165,182 shares, respectively) (2,138,771) (2,124,815) ----------- ----------- Total (292,685) 235,444 ----------- ----------- CLASS B Proceeds from sales of shares (6,266 and 51,904 shares, respectively) 73,540 674,381 Net asset value of shares issued from reinvestment of distributions (759 and 1,246 shares, respectively) 9,078 15,827 Cost of shares repurchased (23,188 and 14,145 shares, respectively) (270,389) (178,481) ----------- ----------- Total (187,771) 511,727 ----------- ----------- CLASS C Proceeds from sales of shares (7,783 and 75,376 shares, respectively) 90,671 978,001 Net asset value of shares issued from reinvestment of distributions (814 and 1,049 shares, respectively) 9,745 13,281 Cost of shares repurchased (12,933 and 19,160 shares, respectively) (150,608) (241,271) ----------- ----------- Total (50,192) 750,011 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (1,976,361) 2,391,652 ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS (1,616,020) 1,423,670 NET ASSETS Beginning of period 22,261,224 20,837,554 ----------- ----------- END OF PERIOD [INCLUDING DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME OF $(8,663) AND $0, RESPECTIVELY] $20,645,204 $22,261,224 =========== ===========
See Notes to Financial Statements 20 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, 3/31/03 ----------------------------------------------------------- (UNAUDITED) 2002 2001 2000 1999 1998 Net asset value, beginning of period $12.07 $12.62 $11.89 $ 9.69 $11.11 $14.71 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.27 0.49(1) 0.42(1) 0.34(1) 0.47(1) 0.54 Net realized and unrealized gain (loss) 0.23 (0.51) 0.69 2.35 (1.20) (3.10) ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 0.50 (0.02) 1.11 2.69 (0.73) (2.56) ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.27) (0.53) (0.38) (0.49) (0.44) (0.46) Distributions from net realized gains -- -- -- -- (0.25) (0.58) ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.27) (0.53) (0.38) (0.49) (0.69) (1.04) ------ ------ ------ ------ ------ ------ Change in net asset value 0.23 (0.55) 0.73 2.20 (1.42) (3.60) ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $12.30 $12.07 $12.62 $11.89 $ 9.69 $11.11 ====== ====== ====== ====== ====== ====== Total return 4.15%(7) (0.42)% 9.52% 29.00% (6.66)% (18.33)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $16,437 $17,584 $17,349 $16,713 $17,346 $21,794 RATIO TO AVERAGE NET ASSETS OF: Operating expenses 1.60%(6) 1.55 %(5) 1.59%(4) 1.79% 1.66 % 1.47 % Net investment income 4.34%(6) 3.73 % 3.49% 3.35% 4.50 % 4.14 % Portfolio turnover 50%(7) 111 % 40% 65% 5 % 53 % CLASS A ----------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, 3/31/03 ----------------------------------------------------------- (UNAUDITED) 2002 2001 2000 1999 1998 Net asset value, beginning of period $11.78 $12.32 $11.67 $ 9.54 $11.00 $14.68 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.17 0.32(1) 0.25(1) 0.21(1) 0.32(1) 0.35 Net realized and unrealized gain (loss) 0.24 (0.51) 0.67 2.30 (1.19) (3.08) ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 0.41 (0.19) 0.92 2.51 (0.87) (2.73) ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.19) (0.35) (0.27) (0.38) (0.34) (0.37) Distributions from net realized gains -- -- -- -- (0.25) (0.58) ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.19) (0.35) (0.27) (0.38) (0.59) (0.95) ------ ------ ------ ------ ------ ------ Change in net asset value 0.22 (0.54) 0.65 2.13 (1.46) (3.68) ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $12.00 $11.78 $12.32 $11.67 $ 9.54 $11.00 ====== ====== ====== ====== ====== ====== Total return(2) 3.51%(7) (1.73)% 7.96% 27.40% (7.97)% (19.52)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $2,251 $2,515 $2,410 $1,437 $919 $1,357 RATIO TO AVERAGE NET ASSETS OF: Operating expenses 2.95%(6) 2.83 %(5) 3.05%(3)(4) 3.05%(3) 3.05 %(3) 2.76 % Net investment income 3.15%(6) 2.50 % 2.11% 2.11% 3.13 % 2.45 % Portfolio turnover 50%(7) 111 % 40% 65% 5 % 53 % (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 3.18%, 4.28% and 4.27% for the periods ended September 30, 2001, 2000 and 1999, respectively. (4) 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. (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 ratios would not significantly differ. (6) Annualized. (7) Not annualized.
See Notes to Financial Statements 21 Phoenix-Seneca Real Estate Securities Fund
FINANCIAL HIGHLIGHTS (SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD) CLASS B ----------------------------------------------------------------------------- SIX MONTHS FROM ENDED YEAR ENDED SEPTEMBER 30, INCEPTION 3/31/03 ----------------------------------------------- 7/1/98 TO (UNAUDITED) 2002 2001 2000 1999 9/30/98 Net asset value, beginning of period $11.74 $12.28 $11.66 $ 9.55 $11.01 $12.58 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.11 0.20(1) 0.17(1) 0.12(1) 0.29(1) 0.07 Net realized and unrealized gain (loss) 0.25 (0.50) 0.65 2.31 (1.22) (1.58) ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 0.36 (0.30) 0.82 2.43 (0.93) (1.51) ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.14) (0.24) (0.20) (0.32) (0.28) (0.06) Distributions from net realized gains -- -- -- -- (0.25) -- ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.14) (0.24) (0.20) (0.32) (0.53) (0.06) ------ ------ ------ ------ ------ ------ Change in net asset value 0.22 (0.54) 0.62 2.11 (1.46) (1.57) ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $11.96 $11.74 $12.28 $11.66 $ 9.55 $11.01 ====== ====== ====== ====== ====== ====== Total return(2) 3.03%(4) (2.63)% 7.21% 26.37% (8.59)% (11.97)%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $812 $987 $554 $287 $197 $91 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(5) 3.80%(3) 3.80 %(8) 3.80%(7) 3.80% 3.80 % 3.80 %(3) Net investment income 2.18%(3) 1.59 % 1.43% 1.19% 2.79 % 2.50 %(3) Portfolio turnover 50%(4) 111 % 40% 65% 5 % 53 %(4) CLASS C ----------------------------------------------------------------------------- SIX MONTHS FROM ENDED YEAR ENDED SEPTEMBER 30, INCEPTION 3/31/03 ----------------------------------------------- 7/1/98 TO (UNAUDITED) 2002 2001 2000 1999 9/30/98 Net asset value, beginning of period $11.75 $12.28 $11.66 $ 9.55 $11.01 $12.58 INCOME FROM INVESTMENT OPERATIONS Net investment income (loss) 0.13 0.21(1) 0.16(1) 0.14(1) 0.29(1) 0.07 Net realized and unrealized gain (loss) 0.23 (0.50) 0.66 2.29 (1.22) (1.58) ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 0.36 (0.29) 0.82 2.43 (0.93) (1.51) ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS: Dividends from net investment income (0.14) (0.24) (0.20) (0.32) (0.28) (0.06) Distributions from net realized gains -- -- -- -- (0.25) -- ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.14) (0.24) (0.20) (0.32) (0.53) (0.06) ------ ------ ------ ------ ------ ------ Change in net asset value 0.22 (0.53) 0.62 2.11 (1.46) (1.57) ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $11.97 $11.75 $12.28 $11.66 $ 9.55 $11.01 ====== ====== ====== ====== ====== ====== Total return(2) 3.03%(4) (2.47)% 7.12% 26.37% (8.58)% (11.97)%(4) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $1,145 $1,175 $525 $329 $200 $88 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(6) 3.80%(3) 3.80 %(8) 3.80%(7) 3.80% 3.80 % 3.80 %(3) Net investment income 2.18%(3) 1.63 % 1.38% 1.36% 2.80 % 2.44 %(3) Portfolio turnover 50%(4) 111 % 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 5.88%, 6.17%, 9.33%, 15.48%, 18.50% and 22.08% for the periods ended March 31, 2003, September 30, 2002, 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 5.03%, 6.10%, 9.18%, 13.58%, 19.95% and 22.93% for the periods ended March 31, 2003, September 30, 2002, 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%. (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 ratios would not significantly differ.
See Notes to Financial Statements 22 PHOENIX-SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 2003 (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 and/or service expenses and have exclusive voting rights with respect to their distribution plans. Class X bears no distribution and/or service expenses. 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 last bid price. 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 accretes discounts using the effective interest method. Realized gains and losses are determined on the identified cost basis. 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 may include the treatment of nontaxable dividends, market discount, 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 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. 23 PHOENIX-SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 2003 (UNAUDITED) (CONTINUED) 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 there is right of 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, 2003, 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, 2003, 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 Trust 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. 24 PHOENIX-SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 2003 (UNAUDITED) (CONTINUED) The Adviser has agreed to waive or reimburse each Fund's operating expenses until January 31, 2004, 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% Phoenix Equity Planning Corporation ("PEPCO"), an indirect wholly-owned subsidiary of PNX, which serves as the national distributor of the Trust's shares has advised the Trust that it retained net selling commissions and deferred sales charges for the six months ended March 31, 2003 is as follows: Class A Class B Class C Net Selling Deferred Deferred Commissions Sales Charges Sales Charges ----------- ------------- ------------- Bond Fund ....................... $4,569 $ 8,049 $ 267 Mid-Cap "EDGE"(SM) Fund ......... 5,308 45,008 4,794 Real Estate Securities Fund ..... 303 1,168 645 In addition to these amounts, the following was paid to W.S. Griffith Securities, Inc., an indirect subsidiary of PNX, for Class A net selling commissions. Bond Fund ....................... $1,680 Mid-Cap "EDGE"(SM) Fund ......... 3,111 Real Estate Securities Fund ..... 128 In addition, each fund pays PEPCO distribution and/or service fees at an annual rate of 0.25% for Class A shares, 1.00% for Class B shares and 1.00% for Class C shares applied to the average daily net assets of the class. The Distributor has advised the Trust that the total amount expensed for the six months ended March 31, 2003 is as follows: Distribution Distribution Distribution and/or and/or Service and/or Service Service Fee Fee Paid to Fee Paid to Retained by Unaffiliated W.S. Griffith Distributor Participants Securities, Inc. ------------ -------------- ---------------- Bond Fund .................... $ 53,411 $ 50,001 $1,925 Mid-Cap "EDGE"(SM) Fund ...... 178,866 166,177 2,466 Real Estate Securities Fund .. 8,813 3,834 339 As Financial Agent 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 tax services and oversight of the subagent's performance. For the six months ended March 31, 2003 financial agent fees were $141,077 as reported in the Statement of Operations of which PEPCO received $20,192 per Fund. Effective January 1, 2003, the fee schedule of PFPC Inc. ranges from 0.065% to 0.03% of the average daily net asset values of all the Phoenix funds serviced by PFPC Inc. Prior to that date, the fee schedule ranged from 0.085% to 0.0125%. Certain minimum fees may apply. 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, 2003 transfer agent fees were $271,607 as reported in the Statement of Operations, of which PEPCO retained the following: Transfer Agent Fee Retained -------------- Bond Fund .................................................... $ -- Mid-Cap "EDGE"(SM) Fund ...................................... 37,356 Real Estate Securities Fund .................................. -- At March 31, 2003, PNX and affiliates and the retirement plans of PNX and affiliates held Phoenix-Seneca Funds shares which aggregated the following: Aggregate Net Asset Shares Value ------ --------- Bond Fund Class X ................................... 37,175 $394,427 Class A ................................... 12,521 131,721 Class B ................................... 12,280 126,975 Class C ................................... 12,259 127,003 Mid-Cap "EDGE"(SM) Fund Class X ................................... 1,809 22,594 Class A ................................... 1,805 22,057 Class B ................................... 7,389 86,451 Class C ................................... 7,390 86,463 Real Estate Securities Fund Class X ................................... 1,731 21,291 Class A ................................... 1,627 19,524 Class B ................................... 9,101 108,848 Class C ................................... 9,102 108,951 3. PURCHASE AND SALE OF SECURITIES Purchases and sales of securities during the six months ended March 31, 2003 (excluding U.S. Government and agency securities and short-term securities) aggregated the following: Purchases Sales ----------- ----------- Bond Fund ....................................... $54,894,196 $45,850,288 Mid-Cap "EDGE"(SM) Fund ......................... 80,217,609 86,446,945 Real Estate Securities Fund ..................... 9,106,665 11,833,937 Purchases and sales of long-term U.S. Government and agency securities during the six months ended March 31, 2003, aggregated the following: Purchases Sales ----------- ----------- Bond Fund ....................................... $53,522,267 $67,160,086 Real Estate Securities Fund ..................... 988,750 -- 25 PHOENIX-SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 2003 (UNAUDITED) (CONTINUED) Written call option activity for the six months ended March 31, 2003 aggregated the following: Real Estate Securities Fund --------------------------- Number of Amount of Options Premiums --------- --------- Options outstanding at September 30, 2002 ........... -- $ -- Options written ..................................... 2,153 193,816 Options expired ..................................... (424) (37,823) Options closed ...................................... (1,095) (99,284) Options exercised ................................... (634) (56,709) ------ -------- Options outstanding at March 31, 2003 ............... -- -- ====== ======== 4. CREDIT RISK AND ASSET 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, 2003, 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 27% Real Estate Securities Fund ................ 1 Omnibus Account 54% 6. FEDERAL INCOME TAX INFORMATION The following funds have capital loss carryovers which may be used to offset future capital gains. 2009 2010 -------- ----------- Bond Fund ........................................ -- $ 1,767,986 Mid-Cap EDGE(SM) Fund ............................ $709,370 42,302,857 Real Estate Securities Fund ...................... 727,379 -- This report is not authorized for distribution to prospective investors in Phoenix-Seneca Funds unless preceded or accompanied by an effective Prospectus which includes information concerning the sales charge, the Trust's record and other pertinent information. 26 FUND MANAGEMENT Information pertaining to the Trustees and officers of the Trust is set forth below. The statement of additional information (SAI) includes additional information about the Trustees and is available without charge, upon request, by calling (800) 243-4361. The address of each individual, unless otherwise noted, is 56 Prospect Street, Hartford, CT 06115-0480. There is no stated term of office for Trustees of the Trust. INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF PORTFOLIOS IN FUND COMPLEX PRINCIPAL OCCUPATION(S) NAME, (AGE), AND LENGTH OF OVERSEEN BY DURING PAST 5 YEARS AND ADDRESS TIME SERVED TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE - ------------------------------------------------------------------------------------------------------------------------------------ E. Virgil Conway (73) Served since 35 Chairman, Rittenhouse Advisors, LLC (consulting firm) since 2001. Rittenhouse Advisors, LLC 2000. Trustee/Director, Realty Foundation of New York (1972-present), Pace 101 Park Avenue University (1978-present), New York Housing Partnership Development New York, NY 10178 Corp. (Chairman) (1981-present), Greater New York Councils, Boy Scouts of America (1985-present), Academy of Political Science (Vice Chairman) (1985-present), Urstadt Biddle Property Corp. (1989-present), The Harlem Youth Development Foundation (1998-present). Chairman, Metropolitan Transportation Authority (1992-2001). Director, Trism, Inc. (1994-2001), Consolidated Edison Company of New York, Inc. (1970-2002), Atlantic Mutual Insurance Company (1974-2002), Centennial Insurance Company (1974-2002), Josiah Macy, Jr., Foundation (1975-2002), Union Pacific Corp. (1978-2002), BlackRock Freddie Mac Mortgage Securities Fund (Advisory Director) (1990-2002), Accuhealth (1994-2002). - ------------------------------------------------------------------------------------------------------------------------------------ Harry Dalzell-Payne (73) Served since 35 Currently retired. The Flat, Elmore Court 1999. Elmore, GL05, GL2 3NT U.K. - ------------------------------------------------------------------------------------------------------------------------------------ Geraldine M. McNamara (51) Served since 33 Managing Director, U.S. Trust Company of New York (private bank) United States Trust 2001. (1982-present). Company of NY 114 West 47th Street New York, NY 10036 - ------------------------------------------------------------------------------------------------------------------------------------ Everett L. Morris (74) Served since 35 Vice President, W.H. Reaves and Company (investment management) W.H. Reaves and Company 2000. (1993-present). 10 Exchange Place Jersey City, NJ 07302 - ------------------------------------------------------------------------------------------------------------------------------------
27 FUND MANAGEMENT (CONTINUED) INTERESTED TRUSTEES Each of the individuals listed below is an "interested person" of the Trust, as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended, and the rules and regulations thereunder.
- ------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF PORTFOLIOS IN NAME, (AGE), ADDRESS FUND COMPLEX PRINCIPAL OCCUPATION(S) AND POSITION(S) WITH LENGTH OF OVERSEEN BY DURING PAST 5 YEARS AND TRUST TIME SERVED TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE - ------------------------------------------------------------------------------------------------------------------------------------ *Philip R. McLoughlin (56) Served since 46 Consultant, The Phoenix Companies, Inc. (2002-present). Director, PXRE 1999. Corporation (Delaware) (1985-present), World Trust Fund (1991-present). Chairman Chairman (1997-2002), Director (1995-2002), Vice Chairman (1995-1997) and Chief Executive Officer (1995-2002), Phoenix Investment Partners, Ltd. Director, Executive Vice President and Chief Investment Officer, The Phoenix Companies, Inc. (2001-2002). Director (1994-2002) and Executive Vice President, Investments (1988-2002), Phoenix Life Insurance Company. Director (1983-2002) and Chairman (1995-2002), Phoenix Investment Counsel, Inc. Director (1984-2002) and President (1990-2000), Phoenix Equity Planning Corporation. Chairman and Chief Executive Officer, Phoenix/Zweig Advisers LLC (1999-2002). Director and President, Phoenix Investment Management Company (2001-2002). Director and Executive Vice President, Phoenix Life and Annuity Company (1996-2002). Director and Executive Vice President, PHL Variable Insurance Company (1995-2002). Director, Phoenix National Trust Company (1996-2002). Director and Vice President, PM Holdings, Inc. (1985-2002). Director, PHL Associates, Inc. (1995-2002). Director (1992-2002) and President (1992-1994), WS Griffith Securities, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ * Mr. McLoughlin is an "interested person," as defined in the Investment Company Act of 1940, by reason of his relationship with The Phoenix Companies, Inc., and its affiliates.
28 FUND MANAGEMENT (CONTINUED) OFFICERS OF THE TRUST WHO ARE NOT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------ POSITION(S) HELD WITH NAME, (AGE), AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) ADDRESS TIME SERVED DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ Gail P. Seneca (50) President since 1996. President and Chief Executive and Investment Officer, Seneca Capital 909 Montgomery Street Management LLC (1996-present). Managing Director, Equities, Phoenix San Francisco, CA 94133 Investment Counsel, Inc. (1998-present). Managing General Partner and Chief Executive and Investment Officer, GMG/Seneca Capital Management LP (1989-present). President, GenCap, Inc. (1994-present). Trustee, Phoenix-Seneca Funds (1996-2000). - ------------------------------------------------------------------------------------------------------------------------------------ William R. Moyer (58) Executive Vice President Executive Vice President and Chief Financial Officer (1999-present), since 2000. Senior Vice President and Chief Financial Officer (1995-1999), Phoenix Investment Partners, Ltd. Director (1998-present), Senior Vice President, Finance (1990-present), Chief Financial Officer (1996-present), and Treasurer (1998-present), Phoenix Equity Planning Corporation. Director (1998-present), Senior Vice President (1990-present), Chief Financial Officer (1996-present) and Treasurer (1994- present), Phoenix Investment Counsel, Inc. Senior Vice President and Chief Financial Officer, Duff & Phelps Investment Management Co. (1996-present). Vice President, Phoenix Fund Complex (1990-present). - ------------------------------------------------------------------------------------------------------------------------------------ John F. Sharry (51) Executive Vice President President, Private Client Group (1999-present), Executive Vice since 2000. President, Retail Division (1997-1999), Phoenix Investment Partners, Ltd. President, Private Client Group, Phoenix Equity Planning Corporation (2000-present). Executive Vice President, Phoenix Fund Complex (1998-present). - ------------------------------------------------------------------------------------------------------------------------------------ Robert S. Driessen (56) Vice President since 1999. Vice President and Compliance Officer, Phoenix Investment Partners, Ltd. (1999-present). Vice President, Phoenix Fund Complex (1999-present). Compliance Officer (2000-present) and Associate Compliance Officer (1999), PXP Securities Corp. Vice President and Compliance Officer, Phoenix Investment Counsel, Inc. (1999-2003). Vice President, Risk Management Liaison, Bank of America (1996-1999). Vice President, Securities Compliance, The Prudential Insurance Company of America (1993-1996). Branch Chief/Financial Analyst, Securities and Exchange Commission, Division of Investment Management (1972-1993). - ------------------------------------------------------------------------------------------------------------------------------------ Nancy G. Curtiss (50) Treasurer since 2000. Vice President, Fund Accounting (1994-present) and Treasurer (1996-present), Phoenix Equity Planning Corporation. Treasurer, Phoenix Fund Complex (1994-present). - ------------------------------------------------------------------------------------------------------------------------------------ Richard J. Wirth (44) Secretary since 2002. Vice President and Insurance and Investment Products Counsel One American Row (2002-present), Counsel (1993-2002), Phoenix Life Insurance Company. Hartford, CT 06102 Secretary, Phoenix Funds Complex (2002-present). - ------------------------------------------------------------------------------------------------------------------------------------
29 PHOENIX-SENECA FUNDS 909 Montgomery Street San Francisco, California 94133 TRUSTEES E. Virgil Conway Harry Dalzell-Payne Philip R. McLoughlin Geraldine M. McNamara Everett L. Morris OFFICERS Gail P. Seneca, President William R. Moyer, Executive Vice President John F. Sharry, Executive Vice President Robert S. Driessen, Vice President Nancy G. Curtiss, Treasurer Richard J. Wirth, Secretary - -------------------------------------------------------------------------------- IMPORTANT NOTICE TO SHAREHOLDERS The Securities and Exchange Commission has modified mailing regulations for semiannual and annual shareholder fund reports to allow mutual fund companies to send a single copy of these reports to shareholders who share the same mailing address. If you would like additional copies, please call Mutual Fund Services at 1-800-243-1574. - -------------------------------------------------------------------------------- INVESTMENT ADVISER Phoenix Investment Counsel, Inc. 56 Prospect Street Hartford, Connecticut 06115-0480 SUBADVISER Seneca Capital Management LLC 909 Montgomery Street San Francisco, California 94133 PRINCIPAL UNDERWRITER Phoenix Equity Planning Corporation 56 Prospect Street Hartford, Connecticut 06115-0480 CUSTODIAN State Street Bank and Trust Company P.O. Box 351 Boston, Massachusetts 02101 TRANSFER AGENT Phoenix Equity Planning Corporation 56 Prospect Street Hartford, Connecticut 06115-0480 INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers LLP 160 Federal Street Boston, Massachusetts 02110 HOW TO CONTACT US Mutual Fund Services 1-800-243-1574 Advisor Consulting Group 1-800-243-4361 Text Telephone 1-800-243-1926 Web site PHOENIXINVESTMENTS.COM (This page has been left blank intentionally.) (This page has been left blank intentionally.) ----------------- PRESORTED STANDARD U.S. POSTAGE PAID Louisville, KY Permit No. 1051 ----------------- PHOENIX EQUITY PLANNING CORPORATION P.O. Box 150480 Hartford, CT 06115-0480 (LOGO) PHOENIX INVESTMENT PARTNERS, LTD. [GRAPHIC OMITTED] For more information about Phoenix mutual funds, please call your financial representative or contact us at 1-800-243-4361 or PHOENIXINVESTMENTS.COM. E-DELIVERY OF YOUR FUND COMMUNICATIONS NOW AVAILABLE! TO SIGN UP, GO TO THE INDIVIDUAL INVESTORS AREA AT PHOENIXINVESTMENTS.COM AND LOG IN. SELECT AN ACCOUNT, THEN CLICK THE "E-DELIVERY" BUTTON. PXP 1140A (5/03) ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) Not applicable. (b) There were no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS. (a)(1) Not applicable. (a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. (b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) PHOENIX-SENECA FUNDS -------------------------------------------------------------------- By (Signature and Title)* /S/ PHILIP R. MCLOUGHLIN ------------------------------------------------------- Philip R. McLoughlin, Chairman (principal executive officer) Date JUNE 5, 2003 ---------------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /S/ PHILIP R. MCLOUGHLIN ------------------------------------------------------- Philip R. McLoughlin, Chairman (principal executive officer) Date JUNE 5, 2003 ---------------------------------------------------------------------------- By (Signature and Title)* /S/ NANCY G. CURTISS ------------------------------------------------------- Nancy G. Curtiss, Treasurer (principal financial officer) Date JUNE 5, 2003 ---------------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.302CERT 3 g7189_exa2.txt EXHIBIT (A)(2) CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT I, Philip R. McLoughlin, certify that: 1. I have reviewed this report on Form N-CSR of Phoenix-Seneca Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report. Date: JUNE 5, 2003 /S/ PHILIP R. MCLOUGHLIN ------------------------------- --------------------------- Philip R. McLoughlin, Chairman (principal executive officer) CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT I, Nancy G. Curtiss, certify that: 1. I have reviewed this report on Form N-CSR of Phoenix-Seneca Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report. Date: JUNE 5, 2003 /S/ NANCY G. CURTISS ------------------------------- --------------------------- Nancy G. Curtiss, Treasurer (principal financial officer) EX-99.906CERT 4 g7189_exb.txt EXHIBIT (B) CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT I, Philip R. McLoughlin, Chairman of Phoenix-Seneca Funds (the "Fund"), certify that: 1. The Form N-CSR of the Fund (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Date: JUNE 5, 2003 /S/ PHILIP R. MCLOUGHLIN ------------------------------- --------------------------- Philip R. McLoughlin, Chairman (principal executive officer) A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request. CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT I, Nancy G. Curtiss, Treasurer of Phoenix-Seneca Funds (the "Fund"), certify that: 1. The Form N-CSR of the Fund (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Date: JUNE 5, 2003 /S/ NANCY G. CURTISS ------------------------------- --------------------------- Nancy G. Curtiss, Treasurer (principal financial officer) A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----