-----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, SKL9tw9HLU3HcbS45j4ixA31OsfioXeNrGbq8oCo3dfMaMe8Xp3GA98tba3F46TJ erBHypuRlAX6TBKNpkDWsA== 0000935069-07-003002.txt : 20071210 0000935069-07-003002.hdr.sgml : 20071210 20071210142710 ACCESSION NUMBER: 0000935069-07-003002 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20070930 FILED AS OF DATE: 20071210 DATE AS OF CHANGE: 20071210 EFFECTIVENESS DATE: 20071210 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PHOENIX OPPORTUNITIES TRUST CENTRAL INDEX KEY: 0001005020 IRS NUMBER: 000000000 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: 071295309 BUSINESS ADDRESS: STREET 1: 101 MUNSON STREET CITY: GREENFIELD STATE: MA ZIP: 01301 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: PHOENIX SENECA FUNDS DATE OF NAME CHANGE: 19990122 FORMER COMPANY: FORMER CONFORMED NAME: SENECA FUNDS DATE OF NAME CHANGE: 19951218 0001005020 S000001336 PHOENIX BOND FUND C000003572 CLASS A SAVAX C000003573 CLASS B SAVBX C000003574 CLASS C SAVCX C000003575 CLASS I SAVYX 0001005020 S000013160 Phoenix Growth Opportunities Fund C000035425 Class A TLCGX C000035426 Class C TGOCX 0001005020 S000018001 Phoenix CA Tax-Exempt Bond Fund C000049899 Class A CTESX C000049900 Class I CTXEX 0001005020 S000018002 Phoenix Real Estate Securities Fund C000049901 Class A PHRAX C000049902 Class B PHRBX C000049903 Class C PHRCX C000049904 Class I PHRIX 0001005020 S000018003 Phoenix Core Bond Fund C000049905 Class A PHGBX C000049906 Class B PUSBX C000049907 Class C PUSCX 0001005020 S000018004 Phoenix Emerging Markets Bond Fund C000049908 Class A PEMAX C000049909 Class B PEMBX C000049910 Class C PGMCX 0001005020 S000018005 Phoenix High Yield Fund C000049911 Class B PHCCX C000049912 Class C PGHCX C000049913 Class A PHCHX 0001005020 S000018006 Phoenix Money Market Fund C000049914 Class A PMMXX 0001005020 S000018007 Phoenix Multi-Sector Fixed Income Fund C000049915 Class A NAMFX C000049916 Class B NBMFX C000049917 Class C NCMFX 0001005020 S000018008 Phoenix Multi-Sector Short Term Bond Fund C000049918 Class A NARAX C000049919 Class B PBARX C000049920 Class C PSTCX C000049921 Class T PMSTX 0001005020 S000018009 Phoenix Global Utilities Fund C000049922 Class A PGUAX C000049923 Class C PGUCX 0001005020 S000018010 Phoenix Market Neutral Fund C000049924 Class A EMNAX C000049925 Class B EMNBX C000049926 Class C EMNCX 0001005020 S000018969 Phoenix Foreign Opportunities Fund C000052519 Class A JVIAX C000052520 Class C JVICX C000052521 Class I JVXIX 0001005020 S000018971 Phoenix International Strategies Fund C000052525 Class A PHITX C000052526 Class B PINBX C000052527 Class C PAICX 0001005020 S000018972 Phoenix Worldwide Strategies Fund C000052528 Class A NWWOX C000052529 Class B WWOBX C000052530 Class C WWOCX 0001005020 S000018973 Phoenix Wealth Accumulator PHOLIO C000052531 Class A PWAAX C000052532 Class C PWACX 0001005020 S000018974 Phoenix Wealth Builder PHOLIO C000052533 Class A PWBAX C000052534 Class C PWBCX 0001005020 S000018975 Phoenix Wealth Guardian PHOLIO C000052535 Class A PSWAX C000052536 Class C PSWCX 0001005020 S000018976 Phoenix Diversifier PHOLIO C000052537 Class A PDPAX C000052538 Class C PDPCX N-CSR 1 g41986phnxoppstrust_combined.txt COMBINED OPP TRUST, FOREIGN OPP, MSTB, REIT 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 811-07455 ----------- Phoenix Opportunities Trust --------------------------------------------------------------- (Exact name of registrant as specified in charter) 101 Munson Street Greenfield, MA 01301-9668 --------------------------------------------------------------- (Address of principal executive offices) (Zip code) Kevin J. Carr, Esq. Vice President, Chief Legal Officer, John H. Beers, Esq. Counsel and Secretary for Registrant Vice President and Counsel Phoenix Life Insurance Company Phoenix Life Insurance Company One American Row One American Row Hartford, CT 06103-2899 Hartford, CT 06103-2899 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (800) 243-1574 --------------- Date of fiscal year end: September 30 -------------- Date of reporting period: September 30, 2007 ------------------- 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, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. The Report to Shareholders is attached herewith. - -------------------------------------------------------------------------------- [LOGO OMITTED] PHOENIX - -------------------------------------------------------------------------------- ANNUAL REPORT ALTERNATIVE FUNDS Phoenix Global Utilities Fund Phoenix Market Neutral Fund FUNDS OF FUNDS Phoenix Diversifier PHOLIO Phoenix Wealth Accumulator PHOLIO Phoenix Wealth Builder PHOLIO Phoenix Wealth Guardian PHOLIO FIXED INCOME FUNDS Phoenix Bond Fund Phoenix CA Tax-Exempt Bond Fund Phoenix Core Bond Fund Phoenix Emerging Markets Bond Fund Phoenix High Yield Fund Phoenix Money Market Fund Phoenix Multi-Sector Fixed Income Fund INTERNATIONAL FUNDS Phoenix International Strategies Fund Phoenix Worldwide Strategies Fund EQUITY FUND Phoenix Growth Opportunities Fund WOULDN'T YOU RATHER HAVE THIS DOCUMENT E-MAILED TO YOU? ELIGIBLE SHAREHOLDERS CAN TRUST NAME: SIGN UP FOR E-DELIVERY AT PHOENIX OPPORTUNITIES TRUST September 30, 2007 PHOENIXFUNDS.COM - -------------------------------------------------------------------------------- NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE TABLE OF CONTENTS Message to Shareholders ................................................... 1 Glossary .................................................................. 2 Disclosure of Fund Expenses ............................................... 4 FUND FUND SUMMARY Phoenix Global Utilities Fund ....................................... 6 Phoenix Market Neutral Fund ......................................... 8 Phoenix Diversifier PHOLIO(SM) ...................................... 10 Phoenix Wealth Accumulator PHOLIO(SM) ............................... 12 Phoenix Wealth Builder PHOLIO(SM) ................................... 14 Phoenix Wealth Guardian PHOLIO(SM) .................................. 16 Phoenix Bond Fund ................................................... 18 Phoenix CA Tax-Exempt Bond Fund ..................................... 20 Phoenix Core Bond Fund .............................................. 22 Phoenix Emerging Markets Bond Fund .................................. 24 Phoenix High Yield Fund ............................................. 26 Phoenix Money Market Fund ........................................... 28 Phoenix Multi-Sector Fixed Income Fund .............................. 30 Phoenix International Strategies Fund ............................... 32 Phoenix Worldwide Strategies Fund ................................... 34 Phoenix Growth Opportunities Fund ................................... 36 Schedules of Investments .................................................. 38 Statement of Assets and Liabilities ....................................... 84 Statement of Operations ................................................... 88 Statement of Changes in Net Assets ........................................ 94 Financial Highlights ...................................................... 104 Notes to Financial Statements ............................................. 118 Report of Independent Registered Public Accounting Firm ................... 134 Board of Trustees' Consideration of Investment Advisory and Subadvisory Agreements .................................................. 136 Results of Shareholder Meeting ............................................ 137 Fund Management Tables .................................................... 139 PROXY VOTING PROCEDURES AND VOTING RECORD (FORM N-PX) The adviser and subadvisers vote proxies relating to portfolio securities in accordance with procedures that have been approved by the Trust's Board of Trustees. You may obtain a description of these procedures, along with information regarding how the Funds voted proxies during the most recent 12-month period ended June 30, 2007, free of charge, by calling toll-free 800-541-0171. This information is also available through the Securities and Exchange Commission's website at http://www.sec.gov. FORM N-Q INFORMATION The Trust files a complete schedule of portfolio holdings for each Fund with the Securities and Exchange Commission (the "SEC") for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC's website at http://www.sec.gov. Form N-Q may be reviewed and copied at the SEC's Public Reference Room. Information on the operation of the SEC's Public Reference Room can be obtained by calling toll-free 1-800-SEC-0330. This report is not authorized for distribution to prospective investors in the Phoenix Opportunities Trust unless preceded or accompanied by an effective prospectus which includes information concerning the sales charge, each Fund's record and other pertinent information. MESSAGE TO SHAREHOLDERS Dear PhoenixFunds Shareholder: [PHOTO OMITTED - George R. Aylward] We are pleased to provide this report for the fiscal period ended September 30, 2007. It includes valuable information about your Phoenix mutual fund(s)--such as performance- and fee-related data and information about each fund's portfolio holdings and transactions for the reporting period. The report also provides commentary from your fund's management team with respect to the fund's performance, its investment strategies, and how the fund performed against the broader market. At Phoenix, we are committed to helping investors succeed over the long term and we strive to provide investors with choice. The Phoenix family of funds offers a wide array of investment options to help make diversification easy. Our multi-manager, multi-style approach gives you access to a complete suite of investment products, including numerous equity, fixed income and money market funds. We are proud to offer this diversified portfolio of funds managed by more than a dozen accomplished independent investment managers--many of whom were previously only available to large institutional investors. Their investment expertise allows us to offer a variety of styles, including growth, value and core products, along with asset allocation funds and alternative investments. Phoenix is also committed to providing you best-in-class service. Whether you need to check your account value or transfer funds, our customer service team stands ready to provide superior, dependable assistance to help you make informed decisions. Because we offer such an extensive selection of investment options, it's important that you consult an experienced financial professional for help reviewing or rebalancing your portfolio on a regular basis. A regular "checkup" can be an excellent way to help ensure that your investments are aligned with your financial goals. As president of Phoenix Investment Partners, Ltd., I would like to thank you for entrusting your assets with us. It's our privilege to serve you. Sincerely yours, /s/ George R. Aylward George R. Aylward President, PhoenixFunds OCTOBER 2007 1 GLOSSARY ADR (AMERICAN DEPOSITARY RECEIPT) Represents shares of foreign companies traded in U.S. dollars on U.S. exchanges that are held by a bank or a trust. Foreign companies use ADRs in order to make it easier for Americans to buy their shares. AMBAC American Municipal Bond Assurance Corporation CITIGROUP 90-DAY TREASURY BILLS INDEX The Citigroup 90-Day Treasury Bills Index measures monthly return equivalents of yield averages that are not marked to market. The 90-Day Treasury Bills Index is an average of the last three three-month Treasury bill issues. GLOBAL UTILITIES FUND COMPOSITE INDEX A composite index consisting of 65% MSCI USA/Utilities Index, which tracks the performance of utility stocks from the United States; 20% MSCI World Telecom Services Index, which tracks the performance of telecom-related stocks from around the world; and 15% MSCI World ex USA/Utilities Index, which tracks the performance of utility stocks from around the world excluding the United States. EXCHANGE-TRADED FUNDS (ETF) Portfolios of stocks or bonds that track a specific market index. FUND OF FUNDS A mutual fund that invests in the shares of other open-end mutual funds according to an established asset allocation model, resulting in a diversified portfolio of asset classes and investment strategies appropriate for pursuit of the overall investment objective. FGIC Financial Guaranty Insurance Company FHLB Federal Home Loan Bank FHLMC Federal Home Loan Mortgage Corporation FNMA OR "FANNIE MAE" Federal National Mortgage Association FSA Financial Security Assurance, Inc. GNMA OR "GINNIE MAE" Government National Mortgage Association HUD U.S. Department of Housing and Urban Development ISHARES Represents shares of an open-end Exchange-Traded Fund. JPMORGAN EMERGING MARKETS BOND INDEX PLUS The JPMorgan Emerging Markets Bond Index Plus measures traded external debt instruments in emerging markets. The index is calculated on a total return basis. JPY Japanese Yen LEHMAN BROTHERS AGGREGATE BOND INDEX The Lehman Brothers Aggregate Bond Index measures the U.S. investment grade fixed rate bond market. The index is calculated on a total return basis. LEHMAN BROTHERS CALIFORNIA MUNICIPAL BOND INDEX The Lehman Brothers California Municipal Bond Index measures long term investment grade, tax-exempt and fixed rate bonds issued in California. The index is calculated on a total return basis. LEHMAN BROTHERS HIGH YIELD BOND 2% ISSUER CAP INDEX Lehman Brothers High Yield 2% Issuer Cap Index is a market capitalization- weighted index that measures fixed rate non-investment grade debt securities of U.S. and non-U.S. corporations. No single issuer accounts for more than 2% of market cap. The index is calculated on a total return basis. LONG POSITION ("LONG") Ownership of a security, giving the investor the right to transfer ownership to someone else, the right to receive income paid by the security, and the right to any profits or losses as the security's value changes. MBIA Municipal Bond Insurance Association MSCI EAFE(R) INDEX The MSCI EAFE(R) Index is a free float-adjusted market capitalization index that measures developed foreign market equity performance, excluding the U.S. and Canada. The index is calculated on a total return basis with gross dividends reinvested. MSCI WORLD(SM) INDEX (NET) A free float-adjusted market capitalization index that measures developed global market equity performance. The index is calculated on a total return basis with net dividends reinvested. PIK (PAYMENT-IN-KIND SECURITY) A bond which pays interest in the form of additional bonds, or preferred stock which pays dividends in the form of additional preferred stock. 2 GLOSSARY (CONTINUED) REIT (REAL ESTATE INVESTMENT TRUST) A publicly traded company that owns, develops and operates income-producing real estate such as apartments, office buildings, hotels, shopping centers and other commercial properties. RUSSELL 1000(R) GROWTH INDEX The Russell 1000(R) Growth Index is a market capitalization-weighted index of growth-oriented stocks of the 1,000 largest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. S&P 500(R) INDEX The S&P 500(R) Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. SHORT POSITION ("SHORT") Stock shares that an investor has sold without actually owning (by borrowing the certificates from a broker) in anticipation of a decline in the stock value by a certain date. If the price falls, the investor buys the shares at the lower rate and makes a profit on the difference. It the price rises, the investor must buy at the higher price and sustains a loss. SPONSORED ADR (AMERICAN DEPOSITARY RECEIPT) An ADR which is issued with the cooperation of the company whose stock will underlie the ADR. These shares carry all the rights of the common share such as voting rights. ADRs must be sponsored to be able to trade on the NYSE. USD OR US $ United States Dollars WEALTH BUILDER PHOLIO COMPOSITE INDEX A composite index consisting of 80% S&P 500(R) Index and 20% Lehman Brothers Aggregate Bond Index. WEALTH GUARDIAN PHOLIO COMPOSITE INDEX A composite index consisting of 60% S&P 500(R) Index and 40% Lehman Brothers Aggregate Bond Index. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS Securities purchased on a when-issued or forward commitment basis are also known as delayed delivery transactions. Delayed delivery transactions involve a commitment by a Fund to purchase or sell a security at a future date, ordinarily up to 90 days later. When-issued or forward commitments enable a Fund to lock in what is believed to be an attractive price or yield on a particular security for a period of time, regardless of future changes in interest rates. XLCA XL Capital Assurance INDEXES ARE UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT; THEREFORE, THEIR PERFORMANCE DOES NOT REFLECT THE EXPENSES ASSOCIATED WITH ACTIVE MANAGEMENT OF AN ACTUAL PORTFOLIO. 3 PHOENIX OPPORTUNITIES TRUST DISCLOSURE OF FUND EXPENSES (UNAUDITED) FOR THE SIX-MONTH PERIOD OF APRIL 1, 2007 TO SEPTEMBER 30, 2007 We believe it is important for you to understand the impact of costs on your investment. All mutual funds have operating expenses. As a shareholder of a Phoenix Opportunities Trust Fund you may incur two types of costs: (1) transaction costs, including sales charges on purchases of Class A shares and contingent deferred sales charges on Class C shares; and (2) ongoing costs, including investment advisory fees; distribution and service fees; and other expenses. Class I shares are sold without sales charges. These examples are intended to help you understand your ongoing costs (in dollars) of investing in a Phoenix Opportunities Trust Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period. The following Expense Tables illustrate your fund's costs in two ways. ACTUAL EXPENSES This section of the accompanying tables provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading "Expenses Paid During Period" to estimate the expenses you paid on your account during the period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES This section of the accompanying tables provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not your Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the accompanying tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges or contingent deferred sales charges. Therefore, the second section of the accompanying tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions. EXPENSE TABLE - -------------------------------------------------------------------------------- Beginning Ending Annualized Expenses Paid Account Value Account Value Expense During 4/1/07 9/30/07 Ratio Period* - -------------------------------------------------------------------------------- GLOBAL UTILITIES FUND - -------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,069.30 1.19% $ 6.17 Class C 1,000.00 1,065.60 1.94 10.05 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,019.03 1.19 6.04 Class C 1,000.00 1,015.22 1.94 9.85 - -------------------------------------------------------------------------------- MARKET NEUTRAL FUND - -------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $ 979.50 1.79% $ 8.88 Class B 1,000.00 976.00 2.53 12.53 Class C 1,000.00 975.90 2.52 12.48 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,015.98 1.79 9.09 Class B 1,000.00 1,012.22 2.53 12.84 Class C 1,000.00 1,012.28 2.52 12.79 - -------------------------------------------------------------------------------- DIVERSIFIER PHOLIO(SM) - -------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,034.50 0.27% $ 1.38 Class C 1,000.00 1,031.50 1.02 5.19 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,023.70 0.27 1.37 Class C 1,000.00 1,019.89 1.02 5.18 - -------------------------------------------------------------------------------- WEALTH ACCUMULATOR PHOLIO(SM) - -------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,071.40 0.07% $ 0.36 Class C 1,000.00 1,066.50 0.81 4.20 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,024.71 0.07 0.36 Class C 1,000.00 1,020.96 0.81 4.11 - -------------------------------------------------------------------------------- WEALTH BUILDER PHOLIO(SM) - -------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,056.80 0.06% $ 0.31 Class C 1,000.00 1,053.40 0.81 4.17 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,024.76 0.06 0.30 Class C 1,000.00 1,020.96 0.81 4.11 - -------------------------------------------------------------------------------- WEALTH GUARDIAN PHOLIO(SM) - -------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,047.00 0.07% $ 0.36 Class C 1,000.00 1,043.40 0.81 4.15 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,024.71 0.07 0.36 Class C 1,000.00 1,020.96 0.81 4.11 - -------------------------------------------------------------------------------- BOND FUND - -------------------------------------------------------------------------------- ACTUAL Class I $1,000.00 $1,014.10 0.80% $ 4.04 Class A 1,000.00 1,013.00 1.05 5.30 Class B 1,000.00 1,009.10 1.80 9.07 Class C 1,000.00 1,009.10 1.80 9.07 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class I 1,000.00 1,021.01 0.80 4.06 Class A 1,000.00 1,019.74 1.05 5.33 Class B 1,000.00 1,015.93 1.80 9.14 Class C 1,000.00 1,015.93 1.80 9.14 4 PHOENIX OPPORTUNITIES TRUST DISCLOSURE OF FUND EXPENSES (UNAUDITED) (CONTINUED) FOR THE SIX-MONTH PERIOD OF APRIL 1, 2007 TO SEPTEMBER 30, 2007 EXPENSE TABLE - -------------------------------------------------------------------------------- Beginning Ending Annualized Expenses Paid Account Value Account Value Expense During 4/1/07 9/30/07 Ratio Period* - -------------------------------------------------------------------------------- CA TAX-EXEMPT BOND FUND - -------------------------------------------------------------------------------- ACTUAL Class I $1,000.00 $1,006.50 0.63% $ 3.17 Class A 1,000.00 1,004.90 0.88 4.42 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class I 1,000.00 1,021.87 0.63 3.20 Class A 1,000.00 1,020.60 0.88 4.47 - -------------------------------------------------------------------------------- CORE BOND FUND - -------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,013.70 1.05% $ 5.30 Class B 1,000.00 1,009.10 1.80 9.07 Class C 1,000.00 1,010.10 1.80 9.07 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,019.74 1.05 5.33 Class B 1,000.00 1,015.93 1.80 9.14 Class C 1,000.00 1,015.93 1.80 9.14 - -------------------------------------------------------------------------------- EMERGING MARKETS BOND FUND - -------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,011.80 1.73% $ 8.72 Class B 1,000.00 1,008.40 2.46 12.39 Class C 1,000.00 1,009.50 2.49 12.54 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,016.29 1.73 8.78 Class B 1,000.00 1,012.58 2.46 12.49 Class C 1,000.00 1,012.43 2.49 12.64 - -------------------------------------------------------------------------------- HIGH YIELD FUND - -------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,009.50 1.38% $ 6.95 Class B 1,000.00 1,003.80 2.13 10.70 Class C 1,000.00 1,005.90 2.14 10.76 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,018.06 1.38 7.01 Class B 1,000.00 1,014.26 2.13 10.81 Class C 1,000.00 1,014.20 2.14 10.86 - -------------------------------------------------------------------------------- MONEY MARKET FUND - -------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,022.90 0.83% $ 4.21 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,020.85 0.83 4.21 - -------------------------------------------------------------------------------- MULTI-SECTOR FIXED INCOME FUND - -------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,008.10 1.21% $ 6.09 Class B 1,000.00 1,004.40 1.97 9.90 Class C 1,000.00 1,004.30 1.97 9.90 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,018.93 1.21 6.14 Class B 1,000.00 1,015.07 1.97 10.00 Class C 1,000.00 1,015.07 1.97 10.00 EXPENSE TABLE - -------------------------------------------------------------------------------- Beginning Ending Annualized Expenses Paid Account Value Account Value Expense During 4/1/07 9/30/07 Ratio Period* - -------------------------------------------------------------------------------- INTERNATIONAL STRATEGIES FUND - -------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,108.40 1.62% $ 8.56 Class B 1,000.00 1,104.60 2.36 12.45 Class C 1,000.00 1,104.20 2.36 12.45 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,016.84 1.62 8.22 Class B 1,000.00 1,013.09 2.36 11.98 Class C 1,000.00 1,013.09 2.36 11.98 - -------------------------------------------------------------------------------- WORLDWIDE STRATEGIES FUND - -------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,096.00 1.63% $ 8.56 Class B 1,000.00 1,090.50 2.38 12.47 Class C 1,000.00 1,091.10 2.38 12.48 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,016.79 1.63 8.27 Class B 1,000.00 1,012.99 2.38 12.08 Class C 1,000.00 1,012.99 2.38 12.08 - -------------------------------------------------------------------------------- GROWTH OPPORTUNITIES FUND - -------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,218.90 1.25% $ 6.95 Class C 1,000.00 1,214.10 2.06 11.43 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,018.72 1.25 6.35 Class C 1,000.00 1,014.61 2.06 10.46 * Expenses are equal to the Funds' annualized expense ratio which includes waived fees and reimbursed expenses, if applicable multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 365 days to reflect the one-half year period. For the fund of funds, the annualized expense ratios noted above do not reflect fees and expenses associated with the underlying funds. If such fees and expenses had been included, the expenses would have been higher. You can find more information about the Funds' expenses in the Financial Statements section that follows. For additional information on operating expenses and other shareholder costs, refer to the prospectus. 5 AN ALTERNATIVE INVESTMENT FUND TICKER SYMBOLS: A Share: PGUAX GLOBAL UTILITIES FUND C Share: PGUCX [ ] PHOENIX GLOBAL UTILITIES FUND ("GLOBAL UTILITIES FUND") To seek both capital appreciation and current income. [ ] For the Fund's fiscal period of May 1, 2007 to September 30, 2007, Class A shares returned 3.02%*; Class C shares returned 2.72%*. For the same period, the S&P 500(R) Index, a broad-based equity index, returned 3.84%*; Global Utilities Fund Composite Index, the Fund's style-specific benchmark, returned 1.59%*. * Returns less than 1 year are not annualized. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE. HOW DID THE MARKETS PERFORM DURING THE FUND'S FISCAL PERIOD? The global utility equity market environment was favorable for all three of the sectors in which the Fund was invested - electric, gas, and telecommunications. [ ] The climate of the ELECTRIC UTILITY INDUSTRY has been positive; most electric companies were financially strong with robust cash flow and solid balance sheets. [ ] Although current GAS storage levels are more normal, it is unlikely that prices will decline meaningfully, as storage has been replenished over the last several months in preparation for the coming winter. [ ] The last 12 months were favorable for the TELECOMMUNICATIONS INDUSTRY. While the benefits of consolidation in the wireless and long-distance segments continued to be realized, the competitive pressures on traditional wireline businesses began to show signs of stabilization. Increased usage of new wireless data services continues to drive overall growth in wireless. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL PERIOD? [ ] The Fund's favorable performance was primarily due to its overweight in telecommunications, as that sector outperformed the electric/gas utility sector. Stock selection in the telecommunications sector was also positive. [ ] Stock selection in the electric and gas sectors in the first part of 2007 hurt the Fund's relative performance, as low-yielding commodity plays in the electric sector outperformed the Fund's more defensive investments. However, that situation significantly reversed itself in the final quarter of the fiscal year, as utilities' defensiveness in a volatile market proved favorable for our holdings. [ ] On a regional basis, our overweight in Europe and underweight in North America contributed positively to performance, as European components in the benchmark outperformed both their Asian and North American counterparts. [ ] The Fund benefited from the weak dollar, good stock selection in the European and Asian telecommunications sector, and merger and acquisition activity in the European electric sector. FOREIGN INVESTING INVOLVES SPECIAL RISKS SUCH AS CURRENCY FLUCTUATION AND LESS PUBLIC DISCLOSURE, AS WELL AS ECONOMIC AND POLITICAL RISKS. BECAUSE THE FUND IS HEAVILY WEIGHTED IN THE UTILITIES SECTOR, IT WILL BE IMPACTED BY THAT SECTOR'S PERFORMANCE MORE THAN A FUND WITH BROADER SECTOR DIVERSIFICATION. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 6 AN ALTERNATIVE INVESTMENT FUND GLOBAL UTILITIES FUND (CONTINUED) AVERAGE ANNUAL TOTAL RETURN(1) for periods ended 9/30/07 - -------------------------------------------------------------------------------- Inception Inception 1 year to 9/30/07 Date - -------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) 26.56% 16.71% 12/30/04 - -------------------------------------------------------------------------------- CLASS A SHARES AT POP(3,4) 19.29% 14.22% 12/30/04 - -------------------------------------------------------------------------------- CLASS C SHARES AT NAV(2) 25.63% 15.81% 12/30/04 - -------------------------------------------------------------------------------- CLASS C SHARES WITH CDSC(4) 25.63% 15.81% 12/30/04 - -------------------------------------------------------------------------------- S&P (500)(R) INDEX 16.44% 10.87% 12/30/04 - -------------------------------------------------------------------------------- GLOBAL UTILITIES FUND COMPOSITE INDEX 25.85% 18.66% 12/31/04 - -------------------------------------------------------------------------------- FUND EXPENSE RATIOS(5): A SHARES: GROSS 1.40%, NET 1.17%, C SHARES: GROSS 2.15%; NET 1.91%. ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 5.75% SALES CHARGE. (4) "CDSC" (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO REDEMPTIONS OF CERTAIN CLASSES OF SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE. CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL REDEMPTIONS OF CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. (5) PER PROSPECTUS EFFECTIVE 6/27/07. NET EXPENSE: EXPENSES REDUCED BY A CONTRACTUAL FEE WAIVER IN EFFECT THROUGH 8/31/07. THE ADVISER HAS VOLUNTARILY EXTENDED THIS EXPENSE LIMITATION UNTIL JANUARY 31, 2008. GROSS EXPENSE: DOES NOT REFLECT THE EFFECT OF CONTRACTUAL (OR VOLUNTARY) FEE WAIVER. GROWTH OF $10,000 For periods ended 9/30/07 - -------------------------------------------------------------------------------- [CHART OMITTED - EDGAR REPRESENTATION OF DATA FOLLOWS] Composite 65% MSCI US Util/20% Share Share S&P 500(R) Wrld Telecom /15% Class A(1,3,4) Class C(1,4) Index Wrld Util ex US ------- ------- --------- ----------------- 12/30/04 $9,425 $10,000 $10,000 $10,000 9/30/05 10,378 10,959 10,291 11,567 9/29/06 11,381 11,911 11,401 12,702 9/28/07 14,405 14,964 13,276 15,986 SECTOR WEIGHTINGS as of 9/30/07* - ------------------------------------------------------------ - ------------------------------------------------------------ Electric Utilities 47% - ------------------------------------------------------------ Integrated Telecommunication Services 29% - ------------------------------------------------------------ Multi-Utilities 17% - ------------------------------------------------------------ Wireless Telecommunication Services 3% - ------------------------------------------------------------ Independent Power Producers 2% - ------------------------------------------------------------ Oil & Gas 1% - ------------------------------------------------------------ Other (includes short-term investments) 1% - ------------------------------------------------------------ * % of total investments as of September 30, 2007. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 7 AN ALTERNATIVE INVESTMENT FUND TICKER SYMBOLS: A Share: EMNAX MARKET NEUTRAL FUND B Share: EMNBX C Share: EMNCX [ ] PHOENIX MARKET NEUTRAL FUND ("MARKET NEUTRAL FUND") To seek long-term capital appreciation while maintaining minimal portfolio exposure to general equity market risk. [ ] For the Fund's fiscal period of November 1, 2006 to September 30, 2007, the Fund's Class A shares returned -3.86%*, Class B shares returned -4.64%* and Class C shares returned -4.57%*. For the same period, the S&P 500(R) Index, a broad-based equity index, returned 12.77%*, and the Citigroup 90-Day Treasury Bills Index, which is the Fund's style-specific index appropriate for comparison, returned 4.57%*. * Returns less than 1 year are not annualized. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE. HOW DID THE EQUITY MARKETS PERFORM DURING THE FUND'S FISCAL PERIOD? [ ] Stocks performed quite well over the course of the previous year, however many investors experienced a dramatic decline in the mid-summer of 2007. Generally, larger capitalization equities outperformed small-cap brethren, while growth stocks outperformed value issues. Thus, small cap value stocks were the laggards during the year, relative to other stock investment categories. The recent summer swoon appears to have been fueled by concerns over the magnitude of the sub-prime mortgage losses and the reaction in the housing market. The increased volatility caused many otherwise seemingly immune sectors to fall as some investors liquidated positions to reduce overall risk and exposure to stocks. In response to liquidity concerns in bank lending and commercial paper, the Federal Reserve cut the Discount rate by 50 basis points in August, and subsequently has cut both the Federal Funds rates and Discount rate again. The initial reaction in equities was very positive and the markets have recouped much of the summer decline. Historically Fed interest rate cuts have been positive for stocks, thus the markets could experience the tail-winds of easier money. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL PERIOD? [ ] As shown in the performance data above, the fund did not keep pace its benchmark. One key reason is that the fund typically buys the stocks with the most relative value perceived by the quantitative model process, while going short issues that look relatively over-valued. Because value stocks under-performed growth stocks, and the fund was positioned in more value-oriented names, this was an obstacle to performance. The fund typically does not have a value or growth bias, however, the models have been finding that many high growth names seem priced for perfection, and while they have had dramatic price increases lately, many names seem posed for a fall with any earnings disappointment. Additionally, individual security selection suffered because of a general liquidation by many quantitative funds during the dramatic summer sell-off in stocks. While virtually every quantitative manager has his or her own model and individual process, the fund was adversely affected by the volatility caused by other model-driven investors. The fund management team has refined the investment process and adjusted the stock selection process to better capture opportunities in individual stocks and sectors. We thank you for your continued support. INVESTING IN THE SECURITIES OF SMALL AND MID-SIZED COMPANIES INVOLVES RISKS, SUCH AS RELATIVELY LOW TRADING VOLUMES, MORE PRICE VOLATILITY AND LESS LIQUIDITY THAN SECURITIES FROM LARGER, MORE ESTABLISHED COMPANIES. INVESTING IN FUNDS THAT USE AGGRESSIVE INVESTMENT STRATEGIES SUCH AS SHORT SELLING, LEVERAGE, AND THE USE OF DERIVATIVES MAY PRODUCE HIGHER LOSSES THAN FUNDS THAT DO NOT USE THESE INVESTMENT STRATEGIES. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 8 AN ALTERNATIVE INVESTMENT FUND MARKET NEUTRAL FUND (CONTINUED) AVERAGE ANNUAL TOTAL RETURN(1) for periods ended 09/30/07 - -------------------------------------------------------------------------------- Inception Inception 1 year 5 years to 9/30/07 Date - -------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) -4.46% -3.24% 0.33% 5/01/98 - -------------------------------------------------------------------------------- CLASS A SHARES AT POP(3,4) -9.96% -4.38% -0.30% 5/01/98 - -------------------------------------------------------------------------------- CLASS B SHARES AT NAV(2) -5.17% -3.94% -0.38% 5/01/98 - -------------------------------------------------------------------------------- CLASS B SHARES WITH CDSC(4) -8.91% -4.13% -0.38% 5/01/98 - -------------------------------------------------------------------------------- CLASS C SHARES AT NAV(2) -5.10% -3.92% -0.40% 5/01/98 - -------------------------------------------------------------------------------- CLASS C SHARES WITH CDSC(4) -5.10% -3.92% -0.40% 5/01/98 - -------------------------------------------------------------------------------- S&P (500)(R) INDEX 16.44% 15.46% 5.01% 5/01/98 - -------------------------------------------------------------------------------- CITIGROUP 90-DAY TREASURY BILLS INDEX 5.01% 2.83% 3.58% 4/30/98 - -------------------------------------------------------------------------------- FUND EXPENSE RATIOS(5): A SHARES: GROSS 3.63% (WHICH INCLUDES 1.46% OF DIVIDEND ON SHORT SALES), NET 3.23% (WHICH INCLUDES 1.46% OF DIVIDEND ON SHORT SALES), B SHARES: GROSS 4.38% (WHICH INCLUDES 1.46% OF DIVIDEND ON SHORT SALES), NET 3.98% (WHICH INCLUDES 1.46% OF DIVIDEND ON SHORT SALES); C SHARES: GROSS 4.38% (WHICH INCLUDES 1.46% OF DIVIDEND ON SHORT SALES), NET 3.98% (WHICH INCLUDES 1.46% OF DIVIDEND ON SHORT SALES). ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 5.75% SALES CHARGE. (4) "CDSC" (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO REDEMPTIONS OF CERTAIN CLASSES OF SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE. CDSC CHARGES FOR B SHARES DECLINE FROM 5% TO 0% OVER A SIX YEAR PERIOD. CDSC CHARGES FOR C SHARES ARE 1.25% IN THE FIRST YEAR AND 0% THEREAFTER. CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. (5) PER PROSPECTUS EFFECTIVE 6/27/07. NET EXPENSE: EXPENSES REDUCED BY A VOLUNTARY FEE WAIVER. GROSS EXPENSE: DOES NOT REFLECT THE EFFECT OF VOLUNTARY FEE WAIVER. GROWTH OF $10,000 For periods ended 9/30/07 - -------------------------------------------------------------------------------- [CHART OMITTED - EDGAR REPRESENTATION OF DATA FOLLOWS] Citigroup 90-Day Share Share Share S&P 500(R) Treasury Class A(1,3,4) Class B(1,4) Class C(1,4) Index Bills ------- ------- ------- ---------- --------- 5/1/98 $9,425 $10,000 $10,000 $10,000 $10,000 9/30/98 9,176 9,718 9,709 10,240 9,145 9/30/99 8,948 9,408 9,390 10,715 11,681 9/29/00 8,597 8,981 8,961 11,317 13,243 9/28/01 9,791 10,153 10,135 11,887 9,716 9/30/02 11,455 11,792 11,765 12,121 7,726 9/30/03 10,307 10,538 10,516 12,270 9,613 9/30/04 10,461 10,613 10,591 12,397 10,946 9/30/05 10,759 10,847 10,826 12,709 12,286 9/29/06 10,171 10,173 10,150 13,269 13,612 9/28/07 9,718 9,648 9,632 13,934 15,850 SECTOR WEIGHTINGS as of 9/30/07* - --------------------------------------------------------------------- Long Short Positions Positions - --------------------------------------------------------------------- - --------------------------------------------------------------------- Information Technology 18% 19% - --------------------------------------------------------------------- Industrials 15% 16% - --------------------------------------------------------------------- Financials 15% 16% - --------------------------------------------------------------------- Consumer Discretionary 13% 13% - --------------------------------------------------------------------- Materials 9% 8% - --------------------------------------------------------------------- Health Care 9% 10% - --------------------------------------------------------------------- Utilities 7% 8% - --------------------------------------------------------------------- Other (may include short-term investments) 14% 10% - --------------------------------------------------------------------- * % of total investments as of September 30, 2007. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 9 FUND OF FUNDS TICKER SYMBOLS: A Share: PDPAX DIVERSIFIER PHOLIO(SM) C Share: PDPCX [ ] PHOENIX DIVERSIFIER PHOLIO(SM) ("DIVERSIFIER PHOLIO(SM)") A fund of funds that seeks long-term capital appreciation. [ ] For the Fund's fiscal period of August 1, 2007 to September 30, 2007, Class A shares returned 6.45%*; Class C shares returned 6.32%*. For the same period, the S&P 500(R) Index, a broad-based equity index, returned 5.29%*. * Returns less than 1 year are not annualized. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE. HOW DID THE MARKETS PERFORM DURING THE FUND'S FISCAL PERIOD? [ ] Equity markets experienced considerable volatility during the Fund's very short recent fiscal period. After a sharp sell-off from mid July to mid August, the Standard & Poor's 500 index rebounded in late August and September to finish up 5.29% for the Fund's fiscal year. Foreign stocks, as represented by the MSCI EAFE Index rose 3.75%. Real Estate Investment Trust securities performed exceedingly well, rising by over 11% during a two month period. Large capitalization growth stocks outpaced large cap value stocks, while large cap stocks outpaced smaller cap stocks. [ ] Fixed income securities, as represented by the Lehman Brothers Aggregate Bond Index, rose 1.99% during the Fund's short fiscal year. Interest rates fell in the U.S. treasury market as the Federal Reserve unexpectedly lowered its benchmark Fed Funds rate by 50 basis points in mid-September. [ ] Commodity markets also were strong performers as the price of oil continued its climb to over $80 per barrel, and the price of gold soared above $700 per ounce. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL PERIOD? [ ] The Fund's exposure to both equity and commodity investments drove performance during the shortened fiscal year. In the equity allocation, investments in a REIT fund, an international REIT exchange traded fund and a global utilities fund produced returns that exceeded the Fund's benchmark index. Commodity investments in two exchange traded funds also produced above benchmark returns. The Fund's performance was hurt by investment in a market neutral fund and a managed currency fund. [ ] THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN EXCHANGE TRADED FUNDS (ETFS) WILL FLUCTUATE IN VALUE, SO THAT WHEN SHARES ARE SOLD OR REDEEMED THEY MAY BE WORTH MORE OR LESS THAN WHEN THEY WERE PURCHASED. TRACKING ERROR, MANAGEMENT EXPENSES, AND LIQUIDITY OF THE MARKET THAT THE ETF INVESTS IN CAN LEAD TO RETURNS THAT DON'T MATCH THAT OF THE MARKET. EVERY TIME YOU BUY OR SELL AN ETF, YOU PAY A BROKERAGE COMMISSION. FOR SOME INVESTORS, THESE FEES CAN OFFSET THE LOWER ANNUAL COSTS THAT ETFS USUALLY CHARGE. FOREIGN INVESTING INVOLVES SPECIAL RISKS SUCH AS CURRENCY FLUCTUATION AND LESS PUBLIC DISCLOSURE, AS WELL AS ECONOMIC AND POLITICAL RISKS. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 10 FUND OF FUNDS DIVERSIFIER PHOLIO(SM) (CONTINUED) AVERAGE ANNUAL TOTAL RETURN(1) for periods ended 9/30/07 - -------------------------------------------------------------------------------- Inception Inception 1 year to 9/30/07 Date - -------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) 13.64% 11.14% 11/30/05 - -------------------------------------------------------------------------------- CLASS A SHARES AT POP(3,4) 7.11% 7.59% 11/30/05 - -------------------------------------------------------------------------------- CLASS C SHARES AT NAV(2) 12.82% 10.32% 11/30/05 - -------------------------------------------------------------------------------- CLASS C SHARES WITH CDSC(4) 12.82% 10.32% 11/30/05 - -------------------------------------------------------------------------------- S&P (500)(R) INDEX 16.44% 13.68% 11/30/05 - -------------------------------------------------------------------------------- FUND EXPENSE RATIOS(5): A SHARES: GROSS 1.97%, NET 1.72%, C SHARES: GROSS 2.72%, NET 2.47%. ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 5.75% SALES CHARGE. (4) "CDSC" (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO REDEMPTIONS OF CERTAIN CLASSES OF SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE. CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL REDEMPTIONS OF CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. (5) PER PROSPECTUS EFFECTIVE 9/24/07. NET EXPENSE: EXPENSES REDUCED BY A CONTRACTUAL FEE WAIVER IN EFFECT THROUGH 11/30/07. GROSS EXPENSE: DOES NOT REFLECT THE EFFECT OF CONTRACTUAL FEE WAIVER. GROWTH OF $10,000 For periods ended 9/30/07 - -------------------------------------------------------------------------------- [CHART OMITTED - EDGAR REPRESENTATION OF DATA FOLLOWS] Share Share S&P 500(R) Class A(1,3,4) Class C(1,4) Index ------- ------- ---------- 11/30/05 $9,425 $10,000 $10,000 9/29/06 10,059 10,606 10,855 9/28/07 11,431 11,965 12,640 FUND INVESTMENT ALLOCATION as of 9/30/07* - ---------------------------------------------------------- - ---------------------------------------------------------- Exchange Traded Funds 46% - ---------------------------------------------------------- Domestic Equity Funds 34% - ---------------------------------------------------------- Foreign Equity Funds 20% - ---------------------------------------------------------- * % of total investments as of September 30, 2007. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 11 FUND OF FUNDS TICKER SYMBOLS: A Share: PWAAX WEALTH ACCUMULATOR PHOLIO(SM) C Share: PWACX [ ] PHOENIX WEALTH ACCUMULATOR PHOLIO(SM) ("WEALTH ACCUMULATOR PHOLIO(SM)") A fund of funds that seeks long-term capital appreciation. [ ] For the Fund's fiscal period of August 1, 2007 to September 30, 2007, Class A shares returned 4.83%*; Class C shares returned 4.69%*. For the same period, the S&P 500(R) Index, a broad-based equity index, returned 5.29%*. * Returns less than 1 year are not annualized. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE. HOW DID THE MARKETS PERFORM DURING THE FUND'S FISCAL PERIOD? [ ] Equity markets experienced considerable volatility during the Fund's very short recent fiscal period. After a sharp sell-off from mid July to mid August, the Standard & Poor's 500 index rebounded in late August and September to finish up 5.29% for the Fund's fiscal year. Foreign stocks, as represented by the MSCI EAFE Index rose 3.75%. Real Estate Investment Trust securities performed exceedingly well, rising by over 11% during a two month period. Large capitalization growth stocks outpaced large cap value stocks, while large cap stocks outpaced smaller cap stocks. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL PERIOD? [ ] The Fund's substantial exposure to equity securities drove performance in the shortened fiscal year. The Fund benefited from its investments in both domestic and foreign equity funds. Investments in a REIT fund, a large cap growth fund, a global utilities fund and a small cap growth fund produced particularly strong returns. The only negative returns were registered by a market neutral fund and a small cap value fund. [ ] Since the fund holds no fixed income securities, fixed income returns were not relevant to performance. FOREIGN INVESTING INVOLVES SPECIAL RISKS SUCH AS CURRENCY FLUCTUATION AND LESS PUBLIC DISCLOSURE, AS WELL AS ECONOMIC AND POLITICAL RISKS. INVESTING IN THE SECURITIES OF SMALL AND MID-SIZED COMPANIES INVOLVES RISKS, SUCH AS RELATIVELY LOW TRADING VOLUMES, MORE PRICE VOLATILITY AND LESS LIQUIDITY THAN SECURITIES FROM LARGER, MORE ESTABLISHED COMPANIES. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 12 FUND OF FUNDS WEALTH ACCUMULATOR PHOLIO(SM) (CONTINUED) AVERAGE ANNUAL TOTAL RETURN(1) for periods ended 9/30/07 - -------------------------------------------------------------------------------- Inception Inception 1 year to 9/30/07 Date - -------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) 18.64% 13.76% 8/04/05 - -------------------------------------------------------------------------------- CLASS A SHARES AT POP(3,4) 11.81% 10.67% 8/04/05 - -------------------------------------------------------------------------------- CLASS C SHARES AT NAV(2) 17.76% 12.87% 8/04/05 - -------------------------------------------------------------------------------- CLASS C SHARES WITH CDSC(4) 17.76% 12.87% 8/04/05 - -------------------------------------------------------------------------------- S&P (500)(R) INDEX 16.44% 12.43% 8/04/05 - -------------------------------------------------------------------------------- FUND EXPENSE RATIOS(5): A SHARES: GROSS 2.50%, NET 1.59%, C SHARES: GROSS 3.25%, NET 2.34%. ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 5.75% SALES CHARGE. (4) "CDSC" (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO REDEMPTIONS OF CERTAIN CLASSES OF SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE. CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL REDEMPTIONS OF CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. (5) PER PROSPECTUS EFFECTIVE 9/24/07. NET EXPENSE: EXPENSES REDUCED BY A CONTRACTUAL FEE WAIVER IN EFFECT THROUGH 11/30/07. GROSS EXPENSE: DOES NOT REFLECT THE EFFECT OF CONTRACTUAL FEE WAIVER. GROWTH OF $10,000 For periods ended 9/30/07 - -------------------------------------------------------------------------------- [CHART OMITTED - EDGAR REPRESENTATION OF DATA FOLLOWS] Share Share S&P 500(R) Class A(1,3,4) Class C(1,4) Index ------- ------- ---------- 8/4/05 $9,425 $10,000 $10,000 9/30/05 9,529 10,100 9,973 9/29/06 10,484 11,018 11,050 9/28/07 12,437 12,975 12,866 FUND INVESTMENT ALLOCATION as of 9/30/07* - ------------------------------------------------------------- - ------------------------------------------------------------- Domestic Equity Funds 74% - ------------------------------------------------------------- Foreign Equity Funds 25% - ------------------------------------------------------------- Other (includes short-term investments) 1% - ------------------------------------------------------------- * % of total investments as of September 30, 2007. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 13 FUND OF FUNDS TICKER SYMBOLS: A Share: PWBAX WEALTH BUILDER PHOLIO(SM) C Share: PWBCX [ ] PHOENIX WEALTH BUILDER PHOLIO(SM) ("WEALTH BUILDER PHOLIO(SM)") A fund of funds that seeks long-term capital appreciation. [ ] For the Fund's fiscal period of August 1, 2007 to September 30, 2007, Class A shares returned 4.23%*, Class C shares returned 4.17%*. For the same period, the S&P 500(R) Index, a broad-based equity index, returned 5.29%*, the Lehman Brothers Aggregate Bond Index, a broad-based fixed income index, returned 1.99%*, and the Wealth Builder PHOLIO Composite Index, the PHOLIO's style-specific benchmark, returned 4.63%*. * Returns less than 1 year are not annualized. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE. HOW DID THE MARKETS PERFORM DURING THE FUND'S FISCAL PERIOD? [ ] Equity markets experienced considerable volatility during the Fund's very short recent fiscal period. After a sharp sell-off from mid July to mid August, the Standard & Poor's 500 index rebounded in late August and September to finish up 5.29% for the Fund's fiscal year. Foreign stocks, as represented by the MSCI EAFE Index rose 3.75%. Real Estate Investment Trust securities performed exceedingly well, rising by over 11% during a two month period. Large capitalization growth stocks outpaced large cap value stocks, while large cap stocks outpaced smaller cap stocks. [ ] Fixed income securities, as represented by the Lehman Brothers Aggregate Bond Index, rose 1.99% during the Fund's short fiscal period. Interest rates fell in the U.S. treasury market as the Federal Reserve unexpectedly lowered its benchmark Fed Funds rate by 50 basis points in mid-September. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL PERIOD? [ ] The Fund's majority allocation to equity funds drove performance in the shortened fiscal period. Equity returns in both domestic and foreign markets easily outpaced fixed income returns. In particular, returns from investments in a REIT fund, a large cap growth fund, a global utilities fund and a small cap growth fund outpaced the Fund's benchmark. The Fund's performance was hurt by investments in a market neutral fund and a small cap value fund. [ ] The Fund's performance was also affected by its small allocation to fixed income funds. Performance was enhanced by a small investment in a high yield bond fund. The Fund's core bond investment funds performed about in line with their benchmarks. FOREIGN INVESTING INVOLVES SPECIAL RISKS SUCH AS CURRENCY FLUCTUATION AND LESS PUBLIC DISCLOSURE, AS WELL AS ECONOMIC AND POLITICAL RISKS. INVESTING IN THE SECURITIES OF SMALL AND MID-SIZED COMPANIES INVOLVES RISKS, SUCH AS RELATIVELY LOW TRADING VOLUMES, MORE PRICE VOLATILITY AND LESS LIQUIDITY THAN SECURITIES FROM LARGER, MORE ESTABLISHED COMPANIES. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 14 FUND OF FUNDS WEALTH BUILDER PHOLIO(SM) (CONTINUED) AVERAGE ANNUAL TOTAL RETURN(1) for periods ended 9/30/07 - -------------------------------------------------------------------------------- Inception Inception 1 year to 9/30/07 Date - -------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) 15.58% 11.03% 8/01/03 - -------------------------------------------------------------------------------- CLASS A SHARES AT POP(3,4) 8.93% 9.46% 8/01/03 - -------------------------------------------------------------------------------- CLASS C SHARES AT NAV(2) 14.82% 10.23% 8/01/03 - -------------------------------------------------------------------------------- CLASS C SHARES WITH CDSC(4) 14.82% 10.23% 8/01/03 - -------------------------------------------------------------------------------- S&P (500)(R) INDEX 16.44% 13.28% 8/01/03 - -------------------------------------------------------------------------------- LEHMAN BROTHERS AGGREGATE BOND INDEX 5.14% 4.50% 8/01/03 - -------------------------------------------------------------------------------- WEALTH BUILDER PHOLIO(SM) COMPOSITE INDEX 14.16% 11.54% 8/01/03 - -------------------------------------------------------------------------------- FUND EXPENSE RATIOS(5): A SHARES: GROSS 1.90%, NET 1.51%, C SHARES: GROSS 2.65%, NET 2.26%. ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 5.75% SALES CHARGE. (4) "CDSC" (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO REDEMPTIONS OF CERTAIN CLASSES OF SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE. CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL REDEMPTIONS OF CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. (5) PER PROSPECTUS EFFECTIVE 9/24/07. NET EXPENSE: EXPENSES REDUCED BY A CONTRACTUAL FEE WAIVER IN EFFECT THROUGH 11/30/07. GROSS EXPENSE: DOES NOT REFLECT THE EFFECT OF CONTRACTUAL FEE WAIVER. GROWTH OF $10,000 For periods ended 9/30/07 - -------------------------------------------------------------------------------- [CHART OMITTED - EDGAR REPRESENTATION OF DATA FOLLOWS] Wealth Builder Composite: Lehman 80% S&P Brothers 500/20% Aggregate Lehman Share Share S&P 500(R) Bond Aggregate Class A(1,3,4) Class C(1,4) Composite Index Bond Index ------- ------- ---------- --------- ---------- 8/1/03 $9,425 $10,000 $10,000 $10,000 $10,000 9/30/03 9,538 10,100 10,191 10,338 10,221 9/30/04 10,528 11,074 11,603 10,718 11,431 9/30/05 11,576 12,084 13,024 11,018 12,616 9/29/06 12,603 13,063 14,430 11,422 13,797 9/28/07 14,567 14,999 16,802 12,009 15,751 FUND INVESTMENT ALLOCATION as of 9/30/07* - ------------------------------------------------------------- - ------------------------------------------------------------- Domestic Equity Funds 58% - ------------------------------------------------------------- Foreign Equity Funds 21% - ------------------------------------------------------------- Domestic Fixed Income Funds 19% - ------------------------------------------------------------- Other (includes short-term investments) 2% - ------------------------------------------------------------- * % of total investments as of September 30, 2007. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 15 FUND OF FUNDS TICKER SYMBOLS: A Share: PSWAX WEALTH GUARDIAN PHOLIO(SM) C Share: PSWCX [ ] PHOENIX WEALTH GUARDIAN PHOLIO(SM) ("WEALTH GUARDIAN PHOLIO(SM)") A fund of funds that seeks long-term capital appreciation and current income. [ ] For the Fund's fiscal period of August 1, 2007 to September 30, 2007, Class A shares returned 3.48%*, Class C shares returned 3.40%. For the same period, the S&P 500(R) Index, a broad-based equity index, returned 5.29%*, the Lehman Brothers Aggregae Bond Index, a broad-based fixed income index, returned 1.99%*, and the Wealth Guardian PHOLIO Composite Index the PHOLIO's style-specific benchmark, returned 3.97%*. * Returns less than 1 year are not annualized. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE. HOW DID THE MARKETS PERFORM DURING THE FUND'S FISCAL PERIOD? [ ] Equity markets experienced considerable volatility during the Fund's very short recent fiscal period. After a sharp sell-off from mid July to mid August, the Standard & Poor's 500 index rebounded in late August and September to finish up 5.29% for the Fund's fiscal year. Foreign stocks, as represented by the MSCI EAFE Index rose 3.75%. Real Estate Investment Trust securities performed exceedingly well, rising by over 11% during a two month period. Large capitalization growth stocks outpaced large cap value stocks, while large cap stocks outpaced smaller cap stocks. [ ] Fixed income securities, as represented by the Lehman Brothers Aggregate Bond Index, rose 1.99% during the Fund's short fiscal period. Interest rates fell in the U.S. treasury market as the Federal Reserve unexpectedly lowered its benchmark Fed Funds rate by 50 basis points in mid-September. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL PERIOD? [ ] The Fund's majority allocation to equity funds drove performance in the shortened fiscal period. Equity returns in both domestic and foreign markets easily outpaced fixed income returns. In particular, returns from investments in a REIT fund, a large cap growth fund, a global utilities fund and a small cap growth fund outpaced the Fund's benchmark. The Fund's performance was hurt by investments in a market neutral fund and a small cap value fund. [ ] The Fund's performance was also affected by its nearly 40% allocation to fixed income funds. Performance was enhanced by the Fund's small allocation to a high yield bond fund. The Fund's two core bond fund investments performed about in-line with their market benchmarks. AS INTEREST RATES RISE, BOND PRICES FALL. AS SUCH, THIS FUND'S SHARE VALUE MAY DECLINE SUBSTANTIALLY, AND IT IS POSSIBLE TO LOSE A SIGNIFICANT PORTION OF YOUR PRINCIPAL WHEN INTEREST RATES RISE. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 16 FUND OF FUNDS WEALTH GUARDIAN PHOLIO(SM) (CONTINUED) AVERAGE ANNUAL TOTAL RETURN(1) for periods ended 9/30/07 - -------------------------------------------------------------------------------- Inception Inception 1 year to 9/30/07 Date - -------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) 12.62% 9.29% 8/01/03 - -------------------------------------------------------------------------------- CLASS A SHARES AT POP(3,4) 6.14% 7.75% 8/01/03 - -------------------------------------------------------------------------------- CLASS C SHARES AT NAV(2) 11.80% 8.48% 8/01/03 - -------------------------------------------------------------------------------- CLASS C SHARES WITH CDSC(4) 11.80% 8.48% 8/01/03 - -------------------------------------------------------------------------------- S&P (500)(R) INDEX 16.44% 13.28% 8/01/03 - -------------------------------------------------------------------------------- LEHMAN BROTHERS AGGREGATE BOND INDEX 5.14% 4.50% 8/01/03 - -------------------------------------------------------------------------------- WEALTH GUARDIAN PHOLIO(SM) COMPOSITE INDEX 11.89% 9.78% 8/01/03 - -------------------------------------------------------------------------------- FUND EXPENSE RATIOS(5): A SHARES: GROSS 1.41%, NET 1.56%, C SHARES: GROSS 2.57%, NET 2.16%. ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 5.75% SALES CHARGE. (4) "CDSC" (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO REDEMPTIONS OF CERTAIN CLASSES OF SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE. CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL REDEMPTIONS OF CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. (5) PER PROSPECTUS EFFECTIVE 9/24/07. NET EXPENSE: EXPENSES REDUCED BY A CONTRACTUAL FEE WAIVER IN EFFECT THROUGH 11/30/07. GROSS EXPENSE: DOES NOT REFLECT THE EFFECT OF CONTRACTUAL FEE WAIVER. GROWTH OF $10,000 For periods ended 9/30/07 - -------------------------------------------------------------------------------- [CHART OMITTED - EDGAR REPRESENTATION OF DATA FOLLOWS] Wealth Guardian Composite: Lehman 60% S&P Brothers 500/40% Aggregate Lehman Share Share S&P 500(R) Bond Aggregate Class A(1,3,4) Class C(1,4) Index Index Index ------- ------- ---------- --------- ---------- 8/1/03 $9,425 $10,000 $10,000 $10,000 $10,000 9/30/03 9,604 10,170 10,191 10,338 10,252 9/30/04 10,469 11,011 11,603 10,718 11,256 9/30/05 11,299 11,798 13,024 11,018 12,211 9/29/06 12,112 12,551 14,430 11,422 13,180 9/28/07 13,641 14,032 16,802 12,009 14,747 FUND INVESTMENT ALLOCATION as of 9/30/07* - -------------------------------------------------------------- - -------------------------------------------------------------- Domestic Equity Funds 46% - -------------------------------------------------------------- Domestic Fixed Income Funds 38% - -------------------------------------------------------------- Foreign Equity Funds 14% - -------------------------------------------------------------- Other (includes short-term investments) 2% - -------------------------------------------------------------- * % of total investments as of September 30, 2007. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 17 FIXED INCOME FUNDS TICKER SYMBOLS: A Share: SAVAX BOND FUND B Share: SAVBX C Share: SAVCX I Share: SAVYX [ ] PHOENIX BOND FUND ("BOND FUND") To seek high total return from both current income and capital appreciation. [ ] For the fiscal year ended September 30, 2007, the Fund's Class I shares returned 4.32%, Class A shares returned 4.09%, Class B shares returned 3.26% and Class C Shares returned 3.25%. For the same period, the Lehman Brothers Aggregate Bond Index, which serves as the broad-based and style-specific benchmark index appropriate for comparison, returned 5.14%. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE. HOW DID THE BOND MARKETS PERFORM DURING THE FUND'S FISCAL YEAR? [ ] The Federal Reserve ended it's tightening regime in June of 2006, and was on hold throughout the fund's fiscal year. During this time period, long-term interest rates, as measured by the 10 year Treasury bond, remained virtually unchanged at 4.60%. As the likelihood of an easing trend became apparent later in the fiscal year, short-term rates began to decline. As such, short and intermediate maturity bonds performed better than longer ones. [ ] Credit spreads widened over the period. This hindered the performance of corporate bonds and mortgage pass throughs. As a result, High Grade corporate bonds and mortgage backed securities both underperformed similar duration treasuries. High Yield bond returns were also hindered by spread widening, but managed to out-perform treasury bonds, as income from High Yield bonds offset the price declines that resulted from their widening spreads. All of the spread widening occurred in the latter part of the year, as Corporate Bonds widened in sympathy with the sub-prime mortgage sector. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR? [ ] During the second quarter of 2007, we adopted a portfolio structure that was designed to capitalize on a steeper yield curve. We concentrated the portfolio in 5 year maturities, which rallied as Fed ease became imminent. This action contributed to the portfolio during the summer credit crunch, when short and intermediate bond yields fell substantially. [ ] We also reduced credit risk during the fiscal year, paring our high yield holdings to 5% in September from a high of 15% earlier in the year. Despite the fact that the fund itself had no subprime exposure, corporate spreads widened in sympathy, and performance was hindered as a result. Our mortgage exposure was limited to pass through securities that were either FNMA guaranteed, or rated AAA. Higher volatility forced the spreads of these securities modestly wider, but their prices were bolstered by their pristine credit quality. AS INTEREST RATES RISE, BOND PRICES FALL. AS SUCH, THIS FUND'S SHARE VALUE MAY DECLINE SUBSTANTIALLY, AND IT IS POSSIBLE TO LOSE A SIGNIFICANT PORTION OF YOUR PRINCIPAL WHEN INTEREST RATES RISE. THE FUND INVESTS IN SECURITIES GUARANTEED BY THE US GOVERNMENT AS TO THE TIMELY PAYMENT OF INTEREST AND PRINCIPAL, HOWEVER, SHARES OF THE FUND ARE NOT INSURED NOR GUARANTEED. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 18 FIXED INCOME FUNDS BOND FUND (CONTINUED) AVERAGE ANNUAL TOTAL RETURN(1) for periods ended 9/30/07 - --------------------------------------------------------------------------------
Inception Inception 1 year 5 years 10 years to 9/30/07 Date - --------------------------------------------------------------------------------------------------------------------- CLASS I SHARES AT NAV(2) 4.32% 4.72% 5.83% -- -- - --------------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) 4.09% 4.45% -- 4.97% 7/01/98 - --------------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT POP(3) -0.86% 3.44% -- 4.42% 7/01/98 - --------------------------------------------------------------------------------------------------------------------- CLASS B SHARES AT NAV(2) 3.26% 3.66% -- 4.18% 7/01/98 - --------------------------------------------------------------------------------------------------------------------- CLASS B SHARES WITH CDSC(4) -0.72% 3.66% -- 4.18% 7/01/98 - --------------------------------------------------------------------------------------------------------------------- CLASS C SHARES AT NAV(2) 3.25% 3.65% -- 4.18% 7/01/98 - --------------------------------------------------------------------------------------------------------------------- CLASS C SHARES WITH CDSC(4) 3.25% 3.65% -- 4.18% 7/01/98 - --------------------------------------------------------------------------------------------------------------------- LEHMAN BROTHERS AGGREGATE BOND INDEX 5.14% 4.13% 5.97% 5.69% 7/01/98 - --------------------------------------------------------------------------------------------------------------------- FUND EXPENSE RATIOS(5): I SHARES: GROSS 0.90%; NET 0.82%, A SHARES: GROSS 1.19%, NET 1.11%, B SHARES: GROSS 2.31%, NET 1.88%; C SHARES: GROSS 3.45%, NET 1.88%.
ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 4.75% SALES CHARGE. (4) "CDSC" (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO REDEMPTIONS OF CERTAIN CLASSES OF SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE. CDSC CHARGES FOR B SHARES DECLINE FROM 5% TO 0% OVER A FIVE YEAR PERIOD. CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. (5) PER PROSPECTUS EFFECTIVE 1/31/07. NET EXPENSE: EXPENSES REDUCED BY A CONTRACTUAL FEE WAIVER IN EFFECT THROUGH 1/31/08 OR VOLUNTARY. GROSS EXPENSE: DOES NOT REFLECT THE EFFECT OF CONTRACTUAL FEE WAIVER. GROWTH OF $10,000 For periods ended 9/30/07 - -------------------------------------------------------------------------------- [CHART OMITTED - EDGAR REPRESENTATION OF DATA FOLLOWS] Lehman Brothers Share Aggregate Class I(1) Bond Index ------- --------------- 9/30/97 $10,000 $10,000 9/30/98 10,944 11,151 9/30/99 11,328 11,110 9/29/00 12,027 11,886 9/28/01 13,210 13,426 9/30/02 13,995 14,580 9/30/03 15,195 15,370 9/30/04 15,885 15,935 9/30/05 16,272 16,380 9/29/06 16,897 16,982 9/28/07 17,627 17,854 SECTOR WEIGHTINGS as of 9/30/07* - ------------------------------------------------------------- - ------------------------------------------------------------- Agency Mortgage-Backed Securities 29% - ------------------------------------------------------------- Domestic Corporate Bonds 26% - ------------------------------------------------------------- U.S. Government Securities 26% - ------------------------------------------------------------- Non-Agency Mortgage-Backed Securities 10% - ------------------------------------------------------------- Foreign Corporate Bonds 7% - ------------------------------------------------------------- Domestic Convertible Preferred Stocks 1% - ------------------------------------------------------------- Other 1% - ------------------------------------------------------------- * % of total investments as of September 30, 2007. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 19 FIXED INCOME FUNDS TICKER SYMBOLS: A Share: CTESX CA TAX-EXEMPT BOND FUND I Share: CTXEX [ ] PHOENIX CA TAX-EXEMPT BOND FUND("CA TAX-EXEMPT BOND FUND") To obtain a high level of current income exempt from California state and local income taxes, as well as federal income tax, consistent with the preservation of capital. [ ] For the Fund's fiscal period of May 1, 2007 to September 30, 2007, Class I shares returned 0.30%*, Class A shares returned 0.18%*. For the same period, the Lehman Brothers Aggregate Bond Index, a broad-based fixed income index, returned 1.76%*; the Lehman Brothers California Municipal Bond Index, the Fund's style-specific benchmark, returned 0.54%*. * Returns less than 1 year are not annualized. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE. HOW DID THE MUNICIPAL BOND MARKETS PERFORM DURING THE FUND'S FISCAL PERIOD? [ ] The second and third quarters of 2007 marked a very volatile time for the municipal markets, as well as for all fixed income sectors. During this time frame, problems in the mortgage markets, specifically the sub-prime mortgage segment, caused significant investor unrest. [ ] The extreme cheapening of municipals relative to U.S. Treasuries was a result of the simultaneous "flight to quality" to Treasuries by investors in general during the sub-prime crises of the third quarter and the liquidation of municipals by non-traditional investors, such as hedge funds. These hedge funds sold their municipal bond holdings in order to reduce the leverage that had increased as a result of significant price declines experienced by other, much less liquid, holdings. [ ] The volatility experienced by the tax-exempt municipal market in the third quarter was purely technically driven, as credit fundamentals continued to remain relatively sound. [ ] Despite their strong credit quality, municipals sometimes do not benefit when investors move to higher-quality assets, as was the case in the third quarter. This situation creates an excellent buying opportunity for investors who are poised to take advantage of these temporary dislocations. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL PERIOD? [ ] The Fund's emphasis on higher-quality bonds helped relative performance over the past 12 months, as higher-quality bonds outperformed their lower-quality counterparts, especially during July and August, when the market experienced significant credit spread widening. [ ] As liquidity weakened, lower-quality A and BBB-rated bonds experienced the greatest price declines as investors avoided these rating classes. [ ] We took advantage of this widening of credit spreads in A and BBB-rated bonds by increasing the Fund's exposure to these rating classes. Since the end of the third quarter of 2006, the Fund has increased it's A and BBB-rated holdings by almost 5%. [ ] While the broader fixed income market continues to grapple with the fallout of the "sub-prime crises", tax-exempt municipals seem to have regained their footing from the technically driven volatility experienced in the third quarter. Though new issuance continues at a record pace, demand from the traditional investors, including both individuals as well as property and casualty insurance companies, is helping to keep the supply and demand in balance. INCOME FROM THE FUND MAY BE SUBJECT TO STATE AND LOCAL TAXES AND THE ALTERNATIVE MINIMUM TAX, IF APPLICABLE. CIRCULAR 230 NOTICE: THE INFORMATION CONTAINED IN THIS COMMUNICATION (INCLUDING ANY ATTACHMENTS) IS NOT INTENDED TO (AND CANNOT) BE USED BY ANYONE TO AVOID PENALTIES UNDER THE INTERNAL REVENUE CODE. THIS COMMUNICATION SUPPORTS THE PROMOTION AND MARKETING OF THE PRODUCTS OR MATTERS DISCUSSED. INDIVIDUALS SHOULD SEEK INDEPENDENT TAX ADVICE BASED ON THEIR OWN CIRCUMSTANCES. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 20 FIXED INCOME FUNDS CA TAX-EXEMPT BOND FUND (CONTINUED) AVERAGE ANNUAL TOTAL RETURN(1) for periods ended 9/30/07 - --------------------------------------------------------------------------------
Inception Inception 1 year 5 years 10 years to 9/30/07 Date - --------------------------------------------------------------------------------------------------------------------------------- CLASS I SHARES AT NAV(2) 2.09% -- -- 2.09% 9/29/06 - --------------------------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) 1.83% 2.73% 4.40% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT POP(3,4) -3.01% 1.73% 3.89% -- -- - --------------------------------------------------------------------------------------------------------------------------------- LEHMAN BROTHERS AGGREGATE BOND INDEX 5.14% 4.13% 5.97% 5.14% 9/29/06 - --------------------------------------------------------------------------------------------------------------------------------- LEHMAN BROTHERS CALIFORNIA MUNICIPAL BOND INDEX 2.97% 4.12% 5.40% 2.97% 9/29/06 - --------------------------------------------------------------------------------------------------------------------------------- FUND EXPENSE RATIOS(5): I SHARES: GROSS 0.85%; NET 0.64%, A SHARES: GROSS 1.10%, NET 0.87%.
ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 4.75% SALES CHARGE. (4) "CDSC" (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO CERTAIN REDEMPTIONS OF CLASS A SHARES MADE WITHIN ONE YEAR FOLLOWING PURCHASES ON WHICH A FINDER'S FEE HAS BEEN PAID. (5) PER PROSPECTUS EFFECTIVE 6/27/07. NET EXPENSE: EXPENSES REDUCED BY A VOLUNTARY FEE WAIVER IN EFFECT THROUGH 1/31/08. GROSS EXPENSE: DOES NOT REFLECT THE EFFECT OF VOLUNTARY FEE WAIVER. GROWTH OF $10,000 For periods ended 9/30/07 - -------------------------------------------------------------------------------- [CHART OMITTED - EDGAR REPRESENTATION OF DATA FOLLOWS] Lehman Lehman Brothers Brothers California Share Aggregate Municipal Class A(1,3,4) Bond Index Bond Index ------- ---------- ---------- 9/30/97 $9,525 $10,000 $10,000 9/30/98 10,298 11,151 10,937 9/30/99 10,027 11,110 10,832 9/29/00 10,708 11,886 11,598 9/28/01 11,706 13,426 12,733 9/30/02 12,811 14,580 13,832 9/30/03 12,973 15,370 14,168 9/30/04 13,426 15,935 14,960 9/30/05 13,839 16,380 15,716 9/29/06 14,400 16,982 16,440 9/28/07 14,663 17,854 16,927 SECTOR WEIGHTINGS as of 9/30/07* - -------------------------------------------------------------- - -------------------------------------------------------------- Pre-Refunded 28% - -------------------------------------------------------------- General Obligation 17% - -------------------------------------------------------------- General Revenue 17% - -------------------------------------------------------------- Water & Sewer Revenue 9% - -------------------------------------------------------------- Development Revenue 6% - -------------------------------------------------------------- Power Revenue 5% - -------------------------------------------------------------- Medical Revenue 5% - -------------------------------------------------------------- Other (includes short-term investments) 13% - -------------------------------------------------------------- * % of total investments as of September 30, 2007. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 21 FIXED INCOME FUNDS TICKER SYMBOLS: A Share: PHGBX CORE BOND FUND B Share: PUSBX C Share: PUSCX [ ] PHOENIX CORE BOND FUND ("CORE BOND FUND") To seek both current income and capital appreciation. [ ] For the Fund's fiscal period of November 1, 2006 to September 30, 2007, the Fund's Class A shares returned 5.44%*, Class B shares returned 4.68%* and Class C shares returned 4.76%*. For the same period, the Lehman Brothers Aggregate Bond Index, which is both the broad-based and style-specific fixed income index appropriate for comparison, returned 4.44%*. * Returns less than 1 year are not annualized. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE. HOW DID THE BOND MARKETS PERFORM DURING THE FUND'S FISCAL PERIOD? [ ] The broad US fixed income market, as represented by the Lehman Brothers Aggregate Bond Index returned 5.14% for the fiscal year ended September 30, 2007. In the first 7 meetings of the fiscal year the Federal Reserve kept the federal funds rate unchanged at 5.25%. On September 18, 2007, the Fed cut the federal funds rate by 0.50% to 4.75%, citing concerns that tightening credit conditions could potentially increase the strain on the housing market, eventually leading to lower than expected economic growth. Since the beginning of the fiscal year the yield curve has steepened, with rates declining at the intermediate and front end of the curve. [ ] The first nine months of the fiscal year can best be characterized as a low volatility, benign credit environment. It was in this atmosphere that non-Treasury fixed income sectors outperformed. In stark contrast, the last three months of the fiscal year were extraordinarily volatile. This was primarily due to fear surrounding the sub-prime mortgage market and its resulting contagion. These fears caused a very significant flight to quality which resulted in dramatic spread widening in all sectors of the bond market. So significant was this flight to quality, that it caused Treasuries to outperform almost all spread sectors for the full reporting period. The only exceptions were, emerging markets and high yield where the excess yield was able to offset the price decline. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL PERIOD? [ ] The decision to maintain an underweight to Treasuries in favor of spread sectors was the largest detractor to performance for the fiscal year. Treasuries outperformed as concerns over sub-prime sparked a flight to quality causing spreads in many sectors to widen. This environment typically does not favor our style of investing however, our ability to be tactical in our use of high quality substitutes for sectors such as investment grade corporates, allowed us to outperform for the fiscal year. [ ] We entered the year with a modest overweight investment grade corporates and took that position down to a comfortable underweight as valuations became rich. This left us in a favorable position as sub-prime contagion began to force spreads wider, allowing us to be able to add selectively into the weakness at attractive valuations. [ ] Additionally, our use of taxable municipal bonds as a substitute for investment grade corporates helped the performance of the portfolio as taxable municipals continued to outperform investment grade corporates. The high quality nature of these bonds combined with competitive yields made them an attractive substitute in the volatile market seen at the end of the fiscal year. AS INTEREST RATES RISE, BOND PRICES FALL. AS SUCH, THIS FUND'S SHARE VALUE MAY DECLINE SUBSTANTIALLY, AND IT IS POSSIBLE TO LOSE A SIGNIFICANT PORTION OF YOUR PRINCIPAL WHEN INTEREST RATES RISE. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 22 FIXED INCOME FUNDS CORE BOND FUND (CONTINUED) AVERAGE ANNUAL TOTAL RETURN(1) for periods ended 9/30/07
Inception Inception 1 year 5 years 10 years to 9/30/07 Date - --------------------------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) 6.14% 3.43% 4.45% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT POP(3,4) 1.09% 2.43% 3.94% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS B SHARES AT NAV(2) 5.18% 2.62% 3.66% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS B SHARES WITH CDSC(4) 1.18% 2.62% 3.66% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS C SHARES AT NAV(2) 5.39% 2.66% -- 3.97% 10/11/99 - --------------------------------------------------------------------------------------------------------------------------------- CLASS C SHARES WITH CDSC(4) 5.39% 2.66% -- 3.97% 10/11/99 - --------------------------------------------------------------------------------------------------------------------------------- LEHMAN BROTHERS AGGREGATE BOND INDEX 5.14% 4.13% 5.97% 6.19% 10/11/99 - --------------------------------------------------------------------------------------------------------------------------------- FUND EXPENSE RATIOS(5): A SHARES: GROSS 1.24%; NET 1.08%, B SHARES: GROSS 1.99%, NET 1.84%; C SHARES: GROSS 1.99%, NET 1.83%.
ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 4.75% SALES CHARGE. (4) "CDSC" (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO REDEMPTIONS OF CERTAIN CLASSES OF SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE. CDSC CHARGES FOR B SHARES DECLINE FROM 5% TO 0% OVER A FIVE YEAR PERIOD. CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. (5) PER PROSPECTUS EFFECTIVE 6/27/07. NET EXPENSE: EXPENSES REDUCED BY A CONTRACTUAL FEE WAIVER IN EFFECT THROUGH 2/28/08. GROSS EXPENSE: DOES NOT REFLECT THE EFFECT OF CONTRACTUAL FEE WAIVER. GROWTH OF $10,000 For periods ended 9/30/07 - -------------------------------------------------------------------------------- [CHART OMITTED - EDGAR REPRESENTATION OF DATA FOLLOWS] Lehman Brothers Share Share Aggregate Class A Class B Bond Index ------- ------- ---------- 9/30/97 $9,525 $10,000 $10,000 9/30/98 10,614 11,066 11,151 9/30/99 10,193 10,551 11,110 9/29/00 10,701 10,985 11,887 9/28/01 11,927 12,157 13,426 9/30/02 12,437 12,584 14,580 9/30/03 12,921 12,962 15,370 9/30/04 13,204 13,152 15,935 9/30/05 13,463 13,296 16,380 9/29/06 13,871 13,617 16,982 9/28/07 14,722 14,323 17,854 SECTOR WEIGHTINGS as of 9/30/07* - -------------------------------------------------------------- - -------------------------------------------------------------- Non-Agency Mortgage-Backed Securities 30% - -------------------------------------------------------------- Agency Mortgage-Backed Securities 25% - -------------------------------------------------------------- Domestic Corporate Bonds 19% - -------------------------------------------------------------- Asset-Backed Securities 9% - -------------------------------------------------------------- Municipal Bonds 6% - -------------------------------------------------------------- Foreign Corporate Bonds 4% - -------------------------------------------------------------- U.S. Government Securities 2% - -------------------------------------------------------------- Other (includes short-term investments) 5% - -------------------------------------------------------------- * % of total investments as of September 30, 2007. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 23 FIXED INCOME FUNDS TICKER SYMBOLS: A Share: PEMAX EMERGING MARKETS BOND FUND B Share: PEMBX C Share: PGMCX [ ] PHOENIX EMERGING MARKETS BOND FUND ("EMERGING MARKETS BOND FUND") To seek high current income and a secondary objective of long-term capital appreciation. [ ] For the Fund's fiscal period of December 1, 2006 to September 30, 2007, the Fund's Class A shares returned 3.91%*, Class B shares returned 3.26%*, and Class C Shares returned 3.36%*. For the same period, the Lehman Brothers Aggregate Bond Index, a broad based fixed income index, returned 3.25%*, and the JPMorgan Emerging Markets Bond Index Plus ("EMBI+"), which is the Fund's style-specific index appropriate for comparison, returned 4.44%*. * Returns less than 1 year are not annualized. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE. HOW DID THE MARKETS PERFORM DURING THE FUND'S FISCAL PERIOD? [ ] Emerging markets had another strong year as fiscal and monetary performance across Asia, Latin America, Eastern Europe and Africa continued to improve. Emerging markets ("EM") countries benefited from strong domestic growth coupled with rising commodity prices. This led to large fiscal surpluses in many EM economies and positive trade balances. [ ] Most of the return for the year came from coupons as the average emerging market yield only dropped by 10bps over the last twelve months. However, the relatively flat performance in yields masked divergence in returns on a country-by-country basis. The best performers in emerging markets over the last year were higher beta credits such as Ecuador (+15%), Brazil (+12%) and Turkey (+12%). The only country to post a negative return over the twelve- month period was Venezuela (-1%). Emerging markets closed the fiscal year with a blended yield of 6.64% and a spread over US Treasuries of +201bps. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL PERIOD? [ ] The fund was positioned to capture much of the running yield in emerging markets during the fiscal year. Overweight positions were generally concentrated in commodity-rich countries such as Russia and Ecuador while underweights were concentrated in highly-rated sovereigns such as Mexico. The fund allocated investments to off-index positions in USD corporate bonds and local instrument bonds throughout emerging markets, where there was significant additional value versus respective sovereign bonds. The fund closed the fiscal year fully invested with approximately 65% of the portfolio invested in sovereign bonds, 25% in corporate bonds and 10% in local currency bonds. THE ECONOMIES OF DEVELOPING COUNTRIES MAY BE ADVERSELY AFFECTED BY TRADE BARRIERS, EXCHANGE CONTROLS, MANAGED ADJUSTMENTS IN RELATIVE CURRENCY VALUES AND OTHER PROTAGONIST MEASURES IMPOSED OR NEGOTIATED BY THE COUNTRIES WITH WHICH THEY TRADE. AS INTEREST RATES RISE, BOND PRICES FALL. AS SUCH, THIS FUND'S SHARE VALUE MAY DECLINE SUBSTANTIALLY, AND IT IS POSSIBLE TO LOSE A SIGNIFICANT PORTION OF YOUR PRINCIPAL WHEN INTEREST RATES RISE. Note: All country return data and spread data can be accessed from both Bloomberg and JP Morgan. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 24 FIXED INCOME FUNDS EMERGING MARKETS BOND FUND (CONTINUED) AVERAGE ANNUAL TOTAL RETURN(1) for periods ended 9/30/07 - --------------------------------------------------------------------------------
Inception Inception 1 year 5 years 10 years to 9/30/07 Date - --------------------------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) 6.79% 13.81% 6.03% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT POP(3,4) 1.72% 12.70% 5.52% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS B SHARES AT NAV(2) 6.07% 12.93% 5.23% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS B SHARES WITH CDSC(4) 2.07% 12.93% 5.23% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS C SHARES AT NAV(2) 6.16% 12.90% -- 5.76% 3/26/98 - --------------------------------------------------------------------------------------------------------------------------------- CLASS C SHARES WITH CDSC(4) 6.16% 12.90% -- 5.76% 3/26/98 - --------------------------------------------------------------------------------------------------------------------------------- LEHMAN BROTHERS AGGREGATE BOND INDEX 5.14% 4.13% 5.97% 5.80% 3/26/98 - --------------------------------------------------------------------------------------------------------------------------------- JPMORGAN EMERGING MARKETS BOND INDEX PLUS 7.96% 16.15% 9.61% 10.01% 3/26/98 - --------------------------------------------------------------------------------------------------------------------------------- FUND EXPENSE RATIOS(5): A SHARES: GROSS 1.65%, NET 1.65%, B SHARES: GROSS 2.40%, NET 2.40%; C SHARES: GROSS 2.40%, NET 2.40%.
ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 4.75% SALES CHARGE. (4) "CDSC" (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO REDEMPTIONS OF CERTAIN CLASSES OF SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE. CDSC CHARGES FOR B SHARES DECLINE FROM 5% TO 0% OVER A FIVE YEAR PERIOD. CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL REDEMPTIONS OF CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. (5) PER PROSPECTUS EFFECTIVE 6/27/07. GROWTH OF $10,000 For periods ended 9/30/07 - -------------------------------------------------------------------------------- [CHART OMITTED - EDGAR REPRESENTATION OF DATA FOLLOWS] Lehman J.P. Morgan Brothers Emerging Share Share Aggregate Markets Bond Class A(1,3,4) Class B(1,4) Bond Index Index Plus ------- ------- ---------- ------------ 9/30/97 $9,525 $10,000 $10,000 $10,000 9/30/98 4,966 5,173 11,151 9,470 9/30/99 6,958 7,185 11,110 9,189 9/29/00 8,784 9,020 11,887 11,765 9/28/01 8,038 8,172 13,426 11,974 9/30/02 8,963 9,063 14,580 11,838 9/30/03 11,965 11,990 15,370 16,594 9/30/04 13,207 13,144 15,935 18,576 9/30/05 15,095 14,919 16,380 21,393 9/29/06 16,024 15,691 16,982 23,181 9/28/07 17,112 16,643 17,854 25,025 COUNTRY WEIGHTINGS as of 9/30/07* - ------------------------------------------------------------- - ------------------------------------------------------------- Russia 13% - ------------------------------------------------------------- Brazil 12% - ------------------------------------------------------------- Turkey 8% - ------------------------------------------------------------- Mexico 8% - ------------------------------------------------------------- Venezuela 6% - ------------------------------------------------------------- United States 6% - ------------------------------------------------------------- Netherlands 5% - ------------------------------------------------------------- Other 42% - ------------------------------------------------------------- * % of total investments as of September 30, 2007. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 25 FIXED INCOME FUNDS TICKER SYMBOLS: A Share: PHCHX HIGH YIELD FUND B Share: PHCCX C Share: PGHCX [ ] PHOENIX HIGH YIELD FUND ("HIGH YIELD FUND") To seek high current income and a secondary objective of capital growth. [ ] For the Fund's fiscal period of November 1, 2006 to September 30, 2007, the Fund's Class A shares returned 6.06%*, Class B shares returned 5.22%*, and Class C Shares returned 5.20%*. For the same period, the Lehman Brothers Aggregate Bond Index, a broad-based fixed income index, returned 4.44%*, and the Lehman Brothers High Yield Bond 2% Issuer Cap Index, the Fund's style-specific index appropriate for comparison, returned 6.17%*. * Returns less than 1 year are not annualized. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE. HOW DID THE BOND MARKETS PERFORM DURING THE FUND'S FISCAL PERIOD? [ ] For much of the twelve months ended September 30, 2007, the bond markets were generally stable with the level of long-term interest rates relatively unchanged. However, during the second half of the year, the market was quite volatile as a result of a crisis in the sub prime mortgage market and related fears of a global credit crunch. In September, short-term rates fell significantly following the Federal Reserve's decision to cut rates by 50-basis points. The Federal Reserve lowered rates following a severe downturn in the housing market and liquidity problems in the credit markets. During the course of the fiscal year, the high yield bond market performed well and posted positive returns for nearly all months of the fiscal year. High yield bonds were buoyed by a number of factors including generally solid economic growth, good corporate earnings, very low default rates, favorable equity markets, and a general lack of "yield" alternatives within the global financial system. The high yield market did encounter a sharp correction in June and July that was primarily related to the sub prime mortgage crisis as well as on oversupply of low-rated leveraged buyout financings. However, the market proved to be resilient and rallied particularly after the Federal Reserve rate cut. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL PERIOD? [ ] For the period, the Fund's performance benefited primarily from good individual credit selection and an over weight in single B rated bonds, which outperformed the overall market. The Fund's substantial underweight to lower-rated bonds (Caa and below) detracted from its overall performance as bonds in this credit tier meaningfully outperformed the overall market. Our underweight in lower-rated bonds is part of our ongoing, long-term strategy, which favors higher-quality high yield issues. In terms of credit selection, we benefited from a number of credits that outperformed the market across a number of sectors. The sources of the out performance stemmed from a variety of factors including improving credit quality, superior relative value, and bond tenders related to mergers and acquisition activity. In terms of industry sectors, the Fund particularly benefited from its overweight in basic industries and technology but was hurt by the relative performance of its investments in consumer cyclicals and energy. HIGH-YIELD BONDS GENERALLY ARE SUBJECT TO GREATER MARKET FLUCTUATIONS AND RISK OF LOSS OF INCOME AND PRINCIPAL THAN ARE INVESTMENTS IN LOWER YIELDING BONDS. AS INTEREST RATES RISE, BOND PRICES FALL. AS SUCH, THIS FUND'S SHARE VALUE MAY DECLINE SUBSTANTIALLY, AND IT IS POSSIBLE TO LOSE A SIGNIFICANT PORTION OF YOUR PRINCIPAL WHEN INTEREST RATES RISE. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 26 FIXED INCOME FUNDS HIGH YIELD FUND (CONTINUED) AVERAGE ANNUAL TOTAL RETURN(1) for periods ended 9/30/07 - --------------------------------------------------------------------------------
Inception Inception 1 year 5 years 10 years to 9/30/07 Date - --------------------------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) 7.59% 8.97% 2.25% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT POP(3,4) 2.48% 7.91% 1.75% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS B SHARES AT NAV(2) 6.69% 8.10% 1.46% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS B SHARES WITH CDSC(4) 2.69% 8.10% 1.46% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS C SHARES AT NAV(2) 6.88% 8.16% -- 1.23% 2/27/98 - --------------------------------------------------------------------------------------------------------------------------------- CLASS C SHARES WITH CDSC(4) 6.88% 8.16% -- 1.23% 2/27/98 - --------------------------------------------------------------------------------------------------------------------------------- LEHMAN BROTHERS AGGREGATE BOND INDEX 5.14% 4.13% 5.97% 5.78% 2/27/98 - --------------------------------------------------------------------------------------------------------------------------------- LEHMAN BROTHERS HIGH YIELD BOND 2% ISSUER CAP INDEX 7.62% 12.37% 5.91% 5.69% 2/27/98 - --------------------------------------------------------------------------------------------------------------------------------- FUND EXPENSE RATIOS(5): A SHARES: GROSS 1.37%, NET 1.37%, B SHARES: GROSS 2.12%, NET 2.12%; C SHARES: GROSS 2.12%, NET 2.12%.
ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 4.75% SALES CHARGE. (4) "CDSC" (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO REDEMPTIONS OF CERTAIN CLASSES OF SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE. CDSC CHARGES FOR B SHARES DECLINE FROM 5% TO 0% OVER A FIVE YEAR PERIOD. CDSC CHARGES FOR CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL REDEMPTIONS OF CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. (5) PER PROSPECTUS EFFECTIVE 6/27/07. GROWTH OF $10,000 For periods ended 9/30/07 - -------------------------------------------------------------------------------- [CHART OMITTED - EDGAR REPRESENTATION OF DATA FOLLOWS] Lehman Lehman Brothers High Brothers Yield Bond Share Share Aggregate 2% Issuer Class A(1,3,4) Class B(1,4) Bond Index Cap Index ------- ------- ---------- ------------- 9/30/97 $9,525 $10,000 $10,000 $10,000 9/30/98 8,538 8,891 11,151 10,174 9/30/99 9,330 9,642 11,110 10,468 9/29/00 9,491 9,729 11,887 10,568 9/28/01 8,037 8,185 13,426 9,995 9/30/02 7,743 7,826 14,580 9,909 9/30/03 9,215 9,242 15,370 12,828 9/30/04 10,013 9,960 15,935 14,435 9/30/05 10,543 10,397 16,380 15,385 9/29/06 11,058 10,831 16,982 16,498 9/28/07 11,896 11,556 17,854 17,755 SECTOR WEIGHTINGS as of 9/30/07* - ------------------------------------------------------------ - ------------------------------------------------------------ Domestic Corporate Bonds 72% - ------------------------------------------------------------ Foreign Corporate Bonds 9% - ------------------------------------------------------------ Other (includes short-term investments) 19% - ------------------------------------------------------------ * % of total investments as of September 30, 2007. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 27 FIXED INCOME FUNDS TICKER SYMBOLS: A Share: PMMXX MONEY MARKET FUND [ ] PHOENIX MONEY MARKET FUND ("MONEY MARKET FUND") To seek as high a level of current income as is consistent with the preservation of capital and maintenance of liquidity. [ ] For the Fund's fiscal period of November 1, 2006 to September 30, 2007, the Fund's Class A shares returned 4.22%*. For the same period, the Lehman Brothers Aggregate Bond Index, a broad based fixed income index, returned 4.44%*, and the Citigroup 90-Day Treasury Bills Index, which is the Fund's style-specific index appropriate for comparison, returned 4.57%*. * Returns less than 1 year are not annualized. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE. AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND. AVERAGE ANNUAL TOTAL RETURN(1) for periods ended 9/30/07 - -------------------------------------------------------------------------------- 1 year 5 years 10 years - -------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) 4.62% 2.39% 3.29% - -------------------------------------------------------------------------------- CLASS A SHARES AT POP(3,4) 4.62% 2.39% 3.29% - -------------------------------------------------------------------------------- LEHMAN BROTHERS AGGREGATE BOND INDEX 5.14% 4.13% 5.97% - -------------------------------------------------------------------------------- CITIGROUP 90-DAY TREASURY BILLS 5.01% 2.83% 3.65% - -------------------------------------------------------------------------------- FUND EXPENSE RATIOS(2): A SHARES: GROSS 0.90%, NET 0.90%. ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) PER PROSPECTUS EFFECTIVE 6/27/07. SECTOR WEIGHTINGS as of 9/30/07* - ------------------------------------------------------------- Commercial Paper 67% - ------------------------------------------------------------- Medium Term Notes 20% - ------------------------------------------------------------- Federal Agency Securities 13% - ------------------------------------------------------------- * % of total investments as of September 30, 2007. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 28 THIS PAGE INTENTIONALLY BLANK. FIXED INCOME FUNDS TICKER SYMBOLS: A Share: NAMFX MULTI-SECTOR FIXED INCOME FUND B Share: NBMFX C Share: NCMFX [ ] PHOENIX MULTI-SECTOR FIXED INCOME FUND ("MULTI-SECTOR FIXED INCOME FUND") To seek to maximize current income while preserving capital. [ ] For the Fund's fiscal period of November 1, 2006 to September 30, 2007, the Fund's Class A shares returned 4.95%*, Class B shares returned 4.25%*, and Class C Shares returned 4.22%*. For the same period, the Lehman Brothers Aggregate Bond Index, which is both the Fund's broad based and style- specific fixed income index, returned 4.44%*. * Returns less than 1 year are not annualized. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE. HOW DID THE MARKETS PERFORM DURING THE FUND'S FISCAL PERIOD? [ ] The broad US fixed income market, as represented by the Lehman Brothers Aggregate Bond Index returned 5.14% for the fiscal year ended September 30, 2007. In the first 7 meetings of the fiscal year the Federal Reserve kept the federal funds rate unchanged at 5.25%. On September 18, 2007, the Fed cut the federal funds rate by 0.50% to 4.75%, citing concerns that tightening credit conditions could potentially increase the strain on the housing market, eventually leading to lower than expected economic growth. Since the beginning of the fiscal year the yield curve has steepened, with rates declining at the intermediate and front end of the curve. [ ] The first nine months of the fiscal period can best be characterized as a low volatility, benign credit environment. It was in this atmosphere that non-treasury fixed income sectors outperformed. In stark contrast, the last three months of the fiscal year were extraordinarily volatile. This was primarily due to fear surrounding the sub-prime mortgage market and its resulting contagion. These fears caused a very significant flight to quality which resulted in dramatic spread widening in all sectors of the bond market. So significant was this flight to quality, that it caused treasuries to outperform almost all spread sectors for the full reporting period. The only exceptions were emerging markets and high yield where the excess yield was able to offset the price decline. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL PERIOD? [ ] The Fund out-performed its benchmark for the fiscal year ended September 30, 2007, benefiting from its overweight to emerging markets, high yield, and non-U.S. dollar investments. The Fund's exposure to the investment grade corporate sector detracted from the Fund's performance. [ ] The largest positive contributor to performance was the fund's exposure to non U.S. dollar investments, which benefited from market expectations that the Federal Reserve would cut U.S. interest rates in 2007 and stronger growth outside of the United States. The Fund also benefited from its position in bank loans, which was used as a more defensive, less volatile substitute for corporate high yield bonds. [ ] Emerging markets was also a positive contributor to performance, as the sector benefited from strong country fundamentals. Another positive contributor to the Fund's performance was high yield investment, benefiting from continued strong fundamentals. [ ] The largest detractor to performance was the fund's exposure to the investment grade corporate sector; one of the worst performing sectors within the bond market. However, the Fund's underweight relative to the index and focus on BBB securities was beneficial to performance. AS INTEREST RATES RISE, BOND PRICES FALL. AS SUCH, THIS FUND'S SHARE VALUE MAY DECLINE SUBSTANTIALLY, AND IT IS POSSIBLE TO LOSE A SIGNIFICANT PORTION OF YOUR PRINCIPAL WHEN INTEREST RATES RISE. FOREIGN INVESTING INVOLVES SPECIAL RISKS SUCH AS CURRENCY FLUCTUATION AND LESS PUBLIC DISCLOSURE, AS WELL AS ECONOMIC AND POLITICAL RISKS. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 30 FIXED INCOME FUNDS MULTI-SECTOR FIXED INCOME FUND (CONTINUED) AVERAGE ANNUAL TOTAL RETURN(1) for periods ended 9/30/07 - --------------------------------------------------------------------------------
Inception Inception 1 year 5 years 10 years to 9/30/07 Date - --------------------------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) 6.19% 8.31% 4.99% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT POP(3,4) 1.15% 7.26% 4.48% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS B SHARES AT NAV(2) 5.52% 7.52% 4.22% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS B SHARES WITH CDSC(4) 1.52% 7.52% 4.22% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS C SHARES AT NAV(2) 5.48% 7.52% -- 4.16% 10/14/97 - --------------------------------------------------------------------------------------------------------------------------------- CLASS C SHARES WITH CDSC(4) 5.48% 7.52% -- 4.16% 10/14/97 - --------------------------------------------------------------------------------------------------------------------------------- LEHMAN BROTHERS AGGREGATE BOND INDEX 5.14% 4.13% 5.97% 5.94% 10/14/97 - --------------------------------------------------------------------------------------------------------------------------------- FUND EXPENSE RATIOS(5): A SHARES: GROSS 1.17%, NET 1.17%, B SHARES: GROSS 1.92%, NET 1.92%; C SHARES: GROSS 1.92%, NET 1.92%.
ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 4.75% SALES CHARGE. (4) "CDSC" (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO REDEMPTIONS OF CERTAIN CLASSES OF SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE. CDSC CHARGES FOR B SHARES DECLINE FROM 5% TO 0% OVER A FIVE YEAR PERIOD. CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. (5) PER PROSPECTUS EFFECTIVE 6/27/07. GROWTH OF $10,000 For periods ended 9/30/07 - -------------------------------------------------------------------------------- [CHART OMITTED - EDGAR REPRESENTATION OF DATA FOLLOWS] Lehman Brothers Share Share Aggregate Class A(1,3,4) Class B(1,4) Bond Index ------- ------- ---------- 9/30/97 $9,525 $10,000 $10,000 9/30/98 8,369 8,715 11,151 9/30/99 9,003 9,311 11,110 9/29/00 9,607 9,857 11,887 9/28/01 9,668 9,846 13,426 9/30/02 10,403 10,517 14,580 9/30/03 12,117 12,155 15,370 9/30/04 13,274 13,221 15,935 9/30/05 13,902 13,748 16,380 9/29/06 14,619 14,337 16,982 9/28/07 15,525 15,128 17,854 SECTOR WEIGHTINGS as of 9/30/07* - ------------------------------------------------------------- - ------------------------------------------------------------- Domestic Corporate Bonds 29% - ------------------------------------------------------------- Foreign Government Securities 21% - ------------------------------------------------------------- Foreign Corporate Bonds 13% - ------------------------------------------------------------- Domestic Loan Agreements 11% - ------------------------------------------------------------- Non-Agency Mortgage-Backed Securities 9% - ------------------------------------------------------------- Agency Mortgage-Backed Securities 7% - ------------------------------------------------------------- Agency Non-Mortgage-Backed Securities 2% - ------------------------------------------------------------- Other (includes short-term investments) 8% - ------------------------------------------------------------- * % of total investments as of September 30, 2007. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 31 INTERNATIONAL FUNDS TICKER SYMBOLS: A Share: PHITX INTERNATIONAL STRATEGIES FUND B Share: PINBX C Share: PAICX [ ] PHOENIX INTERNATIONAL STRATEGIES FUND ("INTERNATIONAL STRATEGIES FUND") To seek high total return consistent with reasonable risk. [ ] For the fiscal period December 1, 2006 to September 30, 2007, the Fund's Class A shares returned 16.91%*, Class B shares returned 16.21%*, and Class C Shares returned 16.18%*. For the same period, the S&P 500(R) Index, a broad-based equity index, returned 10.66%*, and the MSCI EAFE(R) Index, which is the Fund's style-specific index appropriate for comparison, returned 17.14%*. * Returns less than 1 year are not annualized. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE. ACADIAN, HOW DID THE EQUITY MARKETS PERFORM DURING THE FUND'S FISCAL PERIOD? [ ] Non-U.S. markets finished the twelve-month period ending September 2007 in firmly positive territory, demonstrating resilience in light of high energy prices, inflationary pressures and other global concerns. The sharp drops in China that triggered a global sell-off in late February into early March 2007 had little lasting impact on markets, while August's sub-prime mortgage problems in the U.S. and the ensuing global credit market crisis were assessed by investors against generally solid fundamentals, including positive economic growth and year-to-date earnings. While August saw underperformance by some quantitative strategies as equity prices lost their normal relationship to fundamentals, this appears to have been a temporary situation. By the end of September equities regained equilibrium and were generally on an upward track. [ ] Performance in Europe was very solid during the period, with equity markets collectively gaining 27.5% in U.S. dollar terms. Locally stated returns were considerably lower given euro strength during the period. [ ] The Asia-Pacific region returned 19.2% in dollar terms, which translated into a locally stated return of 12.8%. Japan continued to trail its Asian counterparts, posting a 7.1% USD gain versus other markets that were firmly in the double digits. [ ] Elsewhere in the region, Singapore, Australia, and New Zealand all rose. [ ] Emerging markets also made solid gains, rising 58.2%, measured in US$, as soaring commodity prices supported growth and private consumption in many markets continued to improve. Latin American emerging markets fared best, collectively rising 71.5% for the period. [ ] Asian emerging markets gained 62.2% overall. China and India drove this result, rising 134.4% and 63.2%, respectively. Also making notable gains were Korea, at 44.8%, and Thailand, at 41.0%. The EMEA markets as a whole rose 40.6% for the period. * PLEASE NOTE, RETURNS CITED ARE MSCI NET INDEX RETURNS AS OF 9/30/07. ACADIAN, WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL PERIOD? [ ] Contributing significantly to positive active return over the period was stock selection combined with country overweights in Germany and Australia, a combination of stock selection and market underweighting in Japan and Switzerland, and stock selection in Denmark. [ ] Materials stocks were the top performers for the portfolio overall, as metals prices spiked during the period and companies continued to expand their mining efforts to keep up with robust global demand. These stocks were also buoyed by ongoing speculation of continued mergers and acquisitions within the industry. Key contributors included the U.K.'s Antofagasta, Germany's Salzgitter and ThyssenKrupp, and Japan's Sumitomo Metal Mining. A significant position in U.K. energy giant Royal Dutch Shell was also a notable contributor, as were Dutch brewer Heineken and Australian construction firm Leighton Holdings. [ ] Less successful for the portfolio was a combination of stock- and country-level performance in Belgium, stock selection in France and the Netherlands, and stock selection combined with market underweighting in Sweden and Finland. At the individual stock level, Belgian financial service Fortis was the most costly position, which was hurt by a weaker capital market environment and potential negative impact from the planned acquisition of ABN Amro. Additionally, the portfolio did not have exposure to some key benchmark contributors in the telecom sector -- a group of stocks which proved resilient despite the market volatility seen late in the period. These included Vodafone, Nokia and Telefonica. Lack of positioning in both the U.K. and Australian outfits of materials holding BHP Billiton was also costly. NEW STAR, HOW DID THE MARKETS PERFORM DURING THE FISCAL PERIOD? [ ] Markets were strong, aided by a weak US dollar, with international equities as measured by MSCI EAFE returning 25.38 percent over the current period. Abundant liquidity, reasonable valuations, good levels of profitability and earnings upgrades by analysts combined to push markets higher. Leadership did not remain consistent, nor progress smooth, however, as the US subprime For information regarding the indexes and certain investment terms see the glossary starting on page 2. 32 INTERNATIONAL FUNDS INTERNATIONAL STRATEGIES FUND (CONTINUED) crisis caused some severe market corrections and has disrupted the interbank money market, hopefully temporarily, and the structured finance game, possibly for a lot longer. So far, quick action by US, UK ("United Kingdom") and European central banks helped limit systemic risk. [ ] Japan lagged, with little credit growth or a liquidity story to fuel its markets it only returned just over 7 percent in the current fiscal period. [ ] With the emerging markets and specifically China story intact and liquidity still plentiful in total, economically sensitive areas (cyclical sectors) have continued to perform provided they have pricing power or an emerging markets angle. Hong Kong and many emerging markets have in fact taken up leadership since the crisis as they are perceived to be less affected by mild slowdown in the US and may even benefit from the resultant lower US interest rates. Capital flows from China have also started to flow into the likes of HK ("Hong Kong"), boosting the larger China related stocks there. WHAT FACTORS AFFECTED FUND PERFORMANCE? [ ] The first part of the fiscal period proved difficult but good gains from country selection more than made up for it in the second half of the period. Risk-loving behavior by investors was in evidence early on, fuelled by liquidity and earnings upgrades so cyclical and small cap stocks continued their bull run. Quality stocks with higher levels of profitability and large cap companies made less spectacular gains. The reappraisal of risk after the sub-prime crisis and subsequent seizure in the money markets has seen lower quality borrowers finding funding harder, or at least more expensive. Meanwhile, with structural and cyclical liquidity starting to pour into Hong Kong and Chinese companies listed in HK in particular proved especially beneficial, as did reasonable stock selection in Australia with good returns from energy and miners. Avoiding weaker markets such as Ireland towards the latter part of the period also helped. FOREIGN INVESTING INVOLVES SPECIAL RISKS SUCH AS CURRENCY FLUCTUATION AND LESS PUBLIC DISCLOSURE, AS WELL AS ECONOMIC AND POLITICAL RISKS. INVESTING IN THE SECURITIES OF SMALL AND MID-SIZED COMPANIES INVOLVES RISKS, SUCH AS RELATIVELY LOW TRADING VOLUMES, MORE PRICE VOLATILITY AND LESS LIQUIDITY THAN SECURITIES FROM LARGER, MORE ESTABLISHED COMPANIES. AVERAGE ANNUAL TOTAL RETURN(1) for periods ended 9/30/07 - --------------------------------------------------------------------------------
Inception Inception 1 year 5 years 10 years to 9/30/07 Date - --------------------------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) 24.51% 21.88% 7.39% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT POP(3,4) 17.36% 20.45% 6.76% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS B SHARES AT NAV(2) 23.55% 20.99% 6.60% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS B SHARES WITH CDSC(4) 19.55% 20.99% 6.60% -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS C SHARES AT NAV(2) 23.54% 21.03% -- 5.36% 3/30/99 - --------------------------------------------------------------------------------------------------------------------------------- CLASS C SHARES WITH CDSC(4) 23.54% 21.03% -- 5.36% 3/30/99 - --------------------------------------------------------------------------------------------------------------------------------- S&P (500)(R) INDEX 16.44% 15.46% 6.58% 3.56% 3/30/99 - --------------------------------------------------------------------------------------------------------------------------------- MSCI EAFE(R) INDEX 25.38% 24.05% 8.35% 8.36% 3/31/99 - --------------------------------------------------------------------------------------------------------------------------------- FUND EXPENSE RATIOS(5): A SHARES: GROSS 1.68%, NET 1.68%, B SHARES: GROSS 2.43%, NET 2.43%; C SHARES: GROSS 2.43%, NET 2.43%.
ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 5.75% SALES CHARGE. (4) "CDSC" (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO REDEMPTIONS OF CERTAIN CLPSSES OF SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE. CDSC CHARGES FOR B SHARES DECLINE FROM 5% TO 0% OVER A FIVE YEAR PERIOD. CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL REDEMPTIONS OF CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. (5) PER PROSPECTUS EFFECTIVE 9/24/07. GROWTH OF $10,000 For periods ended 9/30/07 - -------------------------------------------------------------------------------- [CHART OMITTED - EDGAR REPRESENTATION OF DATA FOLLOWS] MSCI Share Share EAFE(R) S&P 500(R) Class A(1,3,4) Class B(1,4) Index Index ------- ------- ------- ---------- 9/30/97 $9,525 $10,000 $10,000 $10,000 9/30/98 9,874 10,391 9,192 10,915 9/30/99 12,401 12,963 12,070 13,942 9/29/00 13,036 13,524 12,483 15,805 9/28/01 8,269 8,515 8,954 11,596 9/30/02 7,149 7,308 7,587 9,221 9/30/03 8,710 8,839 9,601 11,473 9/30/04 10,347 10,425 11,763 13,064 9/30/05 13,098 13,087 14,859 14,663 9/29/06 15,442 15,334 17,778 16,246 9/28/07 19,228 18,945 22,291 18,916 COUNTRY WEIGHTINGS as of 9/30/07* - ------------------------------------------------------------- - ------------------------------------------------------------- Japan 18% - ------------------------------------------------------------- United Kingdom 14% - ------------------------------------------------------------- Germany 11% - ------------------------------------------------------------- France 10% - ------------------------------------------------------------- Australia 7% - ------------------------------------------------------------- Switzerland 6% - ------------------------------------------------------------- Netherlands 6% - ------------------------------------------------------------- Other 28% - ------------------------------------------------------------- * % of total investments as of September 30, 2007. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 33 INTERNATIONAL FUNDS TICKER SYMBOLS: A Share: NWWOX WORLDWIDE STRATEGIES FUND B Share: WWOBX C Share: WWOCX [ ] PHOENIX WORLDWIDE STRATEGIES FUND ("WORLDWIDE STRATEGIES FUND") To seek capital appreciation. [ ] For the fiscal period July 1, 2007 to September 30, 2007, the Fund's Class A shares returned 1.93%*, Class B shares returned 1.65%*, and Class C Shares returned 1.67%*. For the same period, the S&P 500(R) Index, a broad-based equity index, returned 2.03%*, and the MSCI World(R) Index (Net), the Fund's style-specific benchmark appropriate for comparison, returned 2.36%*. * Returns less than 1 year are not annualized. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE. PHOENIX INVESTMENT COUNSEL, HOW DID THE MARKETS PERFORM DURING THE FUND'S FISCAL PERIOD? [ ] Market volatility rose late in the fiscal year due to worsening credit conditions caused by defaults in the subprime mortgage sector. The Federal Reserve Open Market Committee acted decisively and lowered both the Fed Funds target rate and the Discount rate in order to avert a crisis. U.S. stocks rose sharply in late September as the rate cuts soothed investors' concerns. [ ] The United States equity markets posted positive returns for the twelve months ended September 30, 2007. In terms of style indices, "Growth" stocks returned more than "Value" stocks for the fiscal year. [ ] International stock markets had stellar performance for the 12-month period. The broad-based MSCI EAFE index posted a double-digit gain of 25.38%. Emerging stock markets logged even better returns. The MSCI Emerging Markets index was up 58.63%. PHOENIX INVESTMENT COUNSEL, WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL PERIOD? [ ] The return on the domestic portion of the portfolio was approximately in-line with the 16.44% return of the S&P 500 Benchmark index. [ ] The domestic portion of the fund benefited the most from sector positioning in Consumer Discretionary, Consumer Staples and Industrials. Sector positioning in Information Technology, Health Care and Materials had an adverse impact on the domestic portion of the fund's performance relative to its benchmark. The top individual stock contributors were Exxon Mobil, International Business Machines, Cisco Systems, AT&T Incorporated and Occidental Petroleum. The bottom five contributors were Motorola, Pfizer, Tyco International, Forest Laboratories and Macy's. NEW STAR, HOW DID THE MARKETS PERFORM DURING THE FISCAL PERIOD? [ ] Markets were strong, aided by a weak US dollar, with international equities as measured by MSCI EAFE returning 25.38 percent over the 12 month period. Abundant liquidity, reasonable valuations, good levels of profitability and earnings upgrades by analysts combined to push markets higher. Leadership did not remain consistent, nor progress smooth, however, as the US subprime crisis caused some severe market corrections and has disrupted the interbank money market, hopefully temporarily, and the structured finance game, possibly for a lot longer. So far, quick action by US, UK and European central banks helped limit systemic risk. [ ] Japan lagged, with little credit growth or a liquidity story to fuel its markets it only returned just over 7 percent in the 12 months to Sept 07. [ ] With the emerging markets and specifically China story intact and liquidity still plentiful in total, economically sensitive areas (cyclical sectors) have continued to perform provided they have pricing power or an emerging markets angle. Hong Kong and many emerging markets have in fact taken up leadership since the crisis as they are perceived to be less affected by mild slowdown in the US and may even benefit from the resultant lower US interest rates. Capital flows from China have also started to flow into the likes of HK, boosting the larger China related stocks there. WHAT FACTORS AFFECTED FUND PERFORMANCE? [ ] The first part of the fiscal year proved difficult but good gains from country selection more than made up for it in the second half of the period. Risk-loving behavior by investors was in evidence early on, fuelled by liquidity and earnings upgrades so cyclical and small cap stocks continued their bull run. Quality stocks with higher levels of profitability and large cap companies made less spectacular gains. The reappraisal of risk after the sub-prime crisis and subsequent seizure in the money markets has seen lower quality borrowers finding funding harder, or at least more expensive. Meanwhile, with structural and cyclical liquidity starting to pour into Hong Kong and Chinese companies listed in HK in particular proved especially beneficial, as did reasonable stock selection in Australia with good returns from energy and miners. Avoiding weaker markets such as Ireland towards the latter part of the period also helped. ACADIAN, HOW DID THE EQUITY MARKETS PERFORM DURING THE FUND'S FISCAL PERIOD? [ ] Non-U.S. markets finished the twelve-month period ending September 2007 in firmly positive territory, demonstrating resilience in light of high energy prices, inflationary pressures and other global concerns. The sharp drops in China that triggered a global sell-off in late February into early March 2007 had little lasting impact on markets, while August's sub-prime mortgage problems in the U.S. and the ensuing global credit market crisis were assessed by investors against generally solid fundamentals, including positive economic growth and year-to-date earnings. While August saw underperformance by some quantitative strategies as equity prices lost their normal relationship to fundamentals, this appears to have been a temporary situation. By the end of September equities regained equilibrium and were generally on an upward track. [ ] Performance in Europe was very solid during the period, with equity markets collectively gaining 27.5% in U.S. dollar terms. Locally stated returns were considerably lower given euro strength during the period. [ ] The Asia-Pacific region returned 19.2% in dollar terms, which translated into a locally stated return of 12.8%. Japan continued to trail its Asian counterparts, posting a 7.1% USD gain versus other markets that were firmly in the double digits. Elsewhere in the region, Singapore, Australia, and New Zealand rose. [ ] Emerging markets also made solid gains, rising 58.2% USD as soaring commodity prices supported growth and private consumption in many markets continued to improve. Latin American emerging markets fared best, collectively rising 71.5% for the period. [ ] Asian emerging markets gained 62.2% overall. China and India drove this result, rising 134.4% and 63.2%, respectively. Also making notable gains were Korea, at 44.8%, and Thailand, at 41.0%. The EMEA markets as a whole rose 40.6% for the period. *PLEASE NOTE, RETURNS CITED ARE MSCI NET INDEX RETURNS AS OF 9/30/07. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 34 INTERNATIONAL FUNDS WORLDWIDE STRATEGIES FUND (CONTINUED) ACADIAN, WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL PERIOD? [ ] Key sources of positive active return included stock selection combined with a market overweight in Germany and stock selection combined with market underweighting in Japan and Switzerland. The active allocations to Canada, Russia and China also added considerable value. Stock-level performance in Denmark was another key contributor. [ ] Materials stocks were the top performers for the portfolio overall, as metals prices spiked during the period and companies continued to expand their mining efforts to keep up with robust global demand. These stocks were also buoyed by ongoing speculation of continued mergers and acquisitions within the industry. Key contributors included the U.K.'s Antofagasta, Germany's Salzgitter and Japan's Sumitomo Metal Mining. The opportunistic allocation to Canada also exposed the portfolio to mining holdings Teck Cominco and LionOre, as well as steel producer IPSCO. A significant position in U.K. energy giant Royal Dutch Shell was also a notable contributor, as were airlines Deutsche Lufthansa and Air France-KLM, which benefited from increasing levels of passenger traffic and strong demand for flights to North America. [ ] Contributing to negative active return over the period was stock selection in the Netherlands and the U.K., in addition to a combination of stock- and country-level performance in Sweden and Belgium. The underweighted allocation to Finland was also costly. [ ] Most costly at the individual stock level were the positions in Belgian financial service Fortis and U.K. healthcare holding AstraZeneca. Additionally, the portfolio did not have exposure to some key benchmark contributors in the telecom sector -- a group of stocks which proved resilient despite the market volatility seen late in the period. These included Vodafone, Nokia and Telefonica. FOREIGN INVESTING INVOLVES SPECIAL RISKS SUCH AS CURRENCY FLUCTUATION AND LESS PUBLIC DISCLOSURE, AS WELL AS ECONOMIC AND POLITICAL RISKS. INVESTING IN THE SECURITIES OF SMALL AND MID-SIZED COMPANIES INVOLVES RISKS, SUCH AS RELATIVELY LOW TRADING VOLUMES, MORE PRICE VOLATILITY AND LESS LIQUIDITY THAN SECURITIES FROM LARGER, MORE ESTABLISHED COMPANIES. AVERAGE ANNUAL TOTAL RETURN(1) for periods ended 9/30/07 - --------------------------------------------------------------------------------
Inception Inception 1 year 5 years 10 years to 9/30/07 Date - ------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) 21.12% 18.44% 7.79% -- -- - ------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT POP(3,4) 14.16% 17.04% 7.15% -- -- - ------------------------------------------------------------------------------------------------------------- CLASS B SHARES AT NAV(2) 20.18% 17.52% 6.97% -- -- - ------------------------------------------------------------------------------------------------------------- CLASS B SHARES WITH CDSC(4) 16.18% 17.52% 6.97% -- -- - ------------------------------------------------------------------------------------------------------------- CLASS C SHARES AT NAV(2) 20.17% 17.50% -- 5.83% 12/15/98 - ------------------------------------------------------------------------------------------------------------- CLASS C SHARES WITH CDSC(4) 20.17% 17.50% -- 5.83% 12/15/98 - ------------------------------------------------------------------------------------------------------------- S&P (500)(R) INDEX 16.44% 15.46% 6.58% 4.81% 12/15/98 - ------------------------------------------------------------------------------------------------------------- MSCI WORLD(SM) INDEX (NET) 21.09% 19.28% 6.99% 5.68% 12/31/98 - ------------------------------------------------------------------------------------------------------------- FUND EXPENSE RATIOS(5): A SHARES: GROSS 1.64%, NET 1.64%, B SHARES: GROSS 2.39%, NET 2.39%; C SHARES: GROSS 2.39%, NET 2.39%.
ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 5.75% SALES CHARGE. (4) "CDSC" (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO REDEMPTIONS OF CERTAIN CLASSES OF SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE. CDSC CHARGES FOR B SHARES DECLINE FROM 5% TO 0% OVER A FIVE YEAR PERIOD. CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL REDEMPTIONS OF CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. (5) PER PROSPECTUS EFFECTIVE 9/24/07. GROWTH OF $10,000 For periods ended 9/30/07 - -------------------------------------------------------------------------------- [CHART OMITTED - EDGAR REPRESENTATION OF DATA FOLLOWS] MSCI Share Share S&P 500(R) World Class A(1,3,4) Class B(1,4) Index Index (Net) ------- ------- ---------- ----------- 9/30/97 $9,425 $10,000 $10,000 $10,000 9/30/98 10,185 10,727 10,915 10,014 9/30/99 12,362 12,912 13,942 12,965 9/29/00 14,145 14,673 15,805 14,023 9/28/01 10,186 10,475 11,596 10,076 9/30/02 8,560 8,752 9,221 8,144 9/30/03 10,315 10,447 11,473 10,212 9/30/04 11,826 11,894 13,064 11,957 9/30/05 14,217 14,193 14,663 14,221 9/29/06 16,469 16,324 16,246 16,238 9/28/07 19,947 19,619 18,917 19,662 COUNTRY WEIGHTINGS as of 9/30/07* - ------------------------------------------------------------- - ------------------------------------------------------------- United States 26% - ------------------------------------------------------------- Japan 11% - ------------------------------------------------------------- United Kingdom 9% - ------------------------------------------------------------- Germany 7% - ------------------------------------------------------------- France 6% - ------------------------------------------------------------- Australia 4% - ------------------------------------------------------------- Switzerland 3% - ------------------------------------------------------------- Other (includes short-term investments) 34% - ------------------------------------------------------------- * % of total investments as of September 30, 2007. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 35 EQUITY FUNDS TICKER SYMBOLS: A Share: TLCGX GROWTH OPPORTUNITIES FUND C Share: TGOCX [ ] PHOENIX GROWTH OPPORTUNITIES FUND ("GROWTH OPPORTUNITIES FUND") Seeks capital appreciation. [ ] For the fiscal year ended September 30, 2007, the Fund's Class A shares returned 30.77% and Class C Shares returned 29.78%. For the same period, the S&P 500(R) Index, a broad-based equity index, returned 16.44%, and the Russell 1000(R) Growth Index, which is the Fund's style-specific equity index appropriate for comparison, returned 19.35%. [ ] ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE. HOW DID THE EQUITY MARKETS PERFORM DURING THE FUND'S FISCAL YEAR? [ ] Growth stocks of all market capitalizations outperformed value stocks for the one year period ended September 30, 2007. The shift from value to growth has been an advantage for the Growth Opportunities Fund which emphasizes high-growth stocks -- shares of companies with strong earnings prospects. During the period investors appeared to be focused on concerns related to the weakening housing market, subprime-mortgage problems that roiled financial-services companies worldwide, higher oil prices, the weakening dollar, and the potential for slower economic growth. However, by mid August investors seemed to be hopeful that the worst of the credit-related problems from the housing and subprime-mortgage markets was over and the Federal Reserve would be aggressive in its effort to keep the economy from sagging into a recession. This view was confirmed as the Fed cut its short-term interest rate by one-half percentage point in September, to 4.75%. This was the first rate reduction in four years and the steepest in nearly five years. This helped stocks rebound over 8.5% from the mid-August lows. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR? [ ] Stock selection during the year was good. Ten of eleven sector positions outperformed their corresponding index sectors. Contributing the most to excess return were the consumer discretionary, healthcare, financial services and producer durables sectors. Our overweighted positions in several stocks also contributed to the Fund's excess returns. Holdings that added value included Las Vegas Sands Corp., Gamestop Corp., Google Inc., Wynn Resorts, Intuitive Surgical Inc., Shire PLC, Thermo Fisher Scientific Inc., CB Richard Ellis Group Inc., Goldman Sachs Group Inc., IntercontinentalExchange Inc., ABB Ltd. and Deere & Co. The Other sector detracted most from performance. Not owning companies such as Honeywell International, 3M Co., and Textron Inc. was the source of relative underperformance for the sector. BECAUSE THE FUND IS HEAVILY WEIGHTED IN THE TECHNOLOGY SECTOR, IT WILL BE IMPACTED BY THAT SECTOR'S PERFORMANCE MORE THAN A FUND WITH BROADER SECTOR DIVERSIFICATION. INVESTING IN THE SECURITIES OF SMALL AND MID-SIZED COMPANIES INVOLVES RISKS, SUCH AS RELATIVELY LOW TRADING VOLUMES, MORE PRICE VOLATILITY AND ESS LIQUIDITY THAN SECURITIES FROM LARGER, MORE ESTABLISHED COMPANIES. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 36 EQUITY FUNDS GROWTH OPPORTUNITIES FUND (CONTINUED) AVERAGE ANNUAL TOTAL RETURN(1) for periods ended 9/30/07 - --------------------------------------------------------------------------------
Inception Inception 1 year 5 years 10 years to 9/30/07 Date - ------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) 30.77% 19.38% 7.34% -- -- - ------------------------------------------------------------------------------------------------------------- CLASS A SHARES AT POP(3,4) 23.25% 17.98% 6.70% -- -- - ------------------------------------------------------------------------------------------------------------- CLASS C SHARES AT NAV(2) 29.78% N/A -- 24.64% 6/09/06 - ------------------------------------------------------------------------------------------------------------- CLASS C SHARES WITH CDSC(4) 29.78% N/A -- 24.64% 6/09/06 - ------------------------------------------------------------------------------------------------------------- S&P (500)(R) INDEX 16.44% 15.46% 6.58% 18.59% 6/09/06 - ------------------------------------------------------------------------------------------------------------- RUSSELL 1000(R) GROWTH INDEX 19.35% 13.84% 4.06% 18.43% 6/09/06 - ------------------------------------------------------------------------------------------------------------- FUND EXPENSE RATIOS(5): A SHARES: GROSS 2.79%, NET 1.25%, C SHARES: GROSS 3.54%, NET 2.00%.
ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 5.75% SALES CHARGE. (4) "CDSC" (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO REDEMPTIONS OF CERTAIN CLASSES OF SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE. CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL REDEMPTIONS OF CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. (5) PER PROSPECTUS EFFECTIVE 1/31/07. NET EXPENSE: EXPENSES REDUCED BY A CONTRACTUAL FEE WAIVER IN EFFECT THROUGH 5/31/08. GROSS EXPENSE: DOES NOT REFLECT THE EFFECT OF CONTRACTUAL FEE WAIVER. GROWTH OF $10,000 For periods ended 9/30/07 - -------------------------------------------------------------------------------- [CHART OMITTED - EDGAR REPRESENTATION OF DATA FOLLOWS] Russell 1000(R) Share Growth S&P 500(R) Class A(1,3,4) Index Index ------- -------- ---------- 9/30/97 $ 9,525 $10,000 $10,000 9/30/98 11,052 11,110 10,915 9/30/99 15,800 14,983 13,942 9/29/00 23,304 18,493 15,805 9/28/01 10,786 10,053 11,596 9/30/02 7,889 7,790 9,221 9/30/03 11,194 9,809 11,473 9/30/04 11,828 10,546 13,064 9/30/05 13,983 11,769 14,663 9/29/06 14,629 12,479 16,246 9/28/07 19,131 14,894 18,916 SECTOR WEIGHTINGS as of 9/30/07* - ------------------------------------------------------------- - ------------------------------------------------------------- Information Technology 35% - ------------------------------------------------------------- Industrials 17% - ------------------------------------------------------------- Health Care 15% - ------------------------------------------------------------- Consumer Discretionary 12% - ------------------------------------------------------------- Financials 11% - ------------------------------------------------------------- Telecommunication Services 3% - ------------------------------------------------------------- Consumer Staples 2% - ------------------------------------------------------------- Other 5% - ------------------------------------------------------------- * % of total investments as of September 30, 2007. For information regarding the indexes and certain investment terms see the glossary starting on page 2. 37 PHOENIX GLOBAL UTILITIES FUND SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 VALUE SHARES (000) -------- -------- DOMESTIC COMMON STOCKS--61.9% ELECTRIC UTILITIES--33.9% Duke Energy Corp. 113,070 $ 2,113 Edison International 22,120 1,227 Entergy Corp. 20,410 2,210 Exelon Corp. 55,600 4,190 FirstEnergy Corp. 30,710 1,945 FPL Group, Inc. 34,140 2,079 Northeast Utilities 22,320 638 Pepco Holdings, Inc. 33,080 896 PPL Corp. 36,700 1,699 Progress Energy, Inc. 17,740 831 Southern Co. (The) 67,760 2,458 -------- 20,286 -------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS--1.8% Constellation Energy Group, Inc. 13,000 1,115 -------- INTEGRATED TELECOMMUNICATION SERVICES--9.6% AT&T, Inc. 55,780 2,360 Citizens Communications Co. 79,320 1,136 Verizon Communications, Inc. 37,110 1,643 Windstream Corp. 43,470 614 -------- 5,753 -------- MULTI-UTILITIES--15.6% Alliant Energy Corp. 10,220 392 CenterPoint Energy, Inc. 25,900 415 Dominion Resources, Inc. 34,130 2,877 NSTAR 15,510 540 PG&E Corp. 30,000 1,434 Public Service Enterprise Group, Inc. 25,920 2,281 Sempra Energy 24,240 1,409 -------- 9,348 -------- OIL & GAS STORAGE & TRANSPORTATION--1.0% Spectra Energy Corp. 24,280 594 - ---------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $35,026) 37,096 - ---------------------------------------------------------------------------- VALUE SHARES (000) -------- -------- FOREIGN COMMON STOCKS(b)--36.4% ELECTRIC UTILITIES--13.1% E.ON AG (Germany) 11,690 $ 2,161 Electricidade de Portugal SA (Portugal) 141,570 828 Enel S.p.A. (Italy) 84,830 960 Fortum Oyj (Finland) 23,965 880 Iberdrola S.A. (Spain) 24,520 1,440 Red Electrica de Espana (Spain) 14,180 735 Scottish and Southern Energy plc (United Kingdom) 27,780 859 -------- 7,863 -------- INTEGRATED TELECOMMUNICATION SERVICES--19.2% BT Group plc Sponsored ADR (United Kingdom) 15,490 973 Chunghwa Telecom Co. Ltd. Sponsored ADR (Taiwan) 61,708 1,140 Elisa Oyj (Finland) 27,340 850 France Telecom SA Sponsored ADR (France) 38,010 1,271 Koninklijke (Royal) KPN N.V. Sponsored ADR (Netherlands) 79,360 1,378 Neuf Cegetel (France) 22,580 988 Singapore Telecommunications Ltd. (Singapore) 441,400 1,195 Telecom Corporation of New Zealand Ltd. Sponsored ADR (New Zealand) 33,820 574 Telefonica S.A. Sponsored ADR (Spain) 23,770 1,992 TeliaSonera AB (Sweden) 125,670 1,136 -------- 11,497 -------- MULTI-UTILITIES--0.9% National Grid plc (United Kingdom) 33,030 530 -------- VALUE SHARES (000) -------- -------- WIRELESS TELECOMMUNICATION SERVICES--3.2% Vodafone Group plc Sponsored ADR (United Kingdom) 53,300 $ 1,935 - ---------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $18,269) 21,825 - ---------------------------------------------------------------------------- TOTAL LONG-TERM INVESTMENTS--98.3% (IDENTIFIED COST $53,295) 58,921 - ---------------------------------------------------------------------------- PAR VALUE (000) -------- SHORT-TERM INVESTMENTS--1.1% FEDERAL AGENCY SECURITIES--1.1% FHLB 4.050% due 10/2/07(c) $ 630 630 - ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $630) 630 - ---------------------------------------------------------------------------- TOTAL INVESTMENTS--99.4% (IDENTIFIED COST $53,925) 59,551(a) Other assets and liabilities, net--0.6% 351 -------- NET ASSETS--100.0% $ 59,902 ======== (a) Federal Income Tax Information (reported in 000's): Net unrealized appreciation of investment securities is comprised of gross appreciation of $5,894 and gross depreciation of $316 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $53,973. (b) A security is considered to be foreign if the security is issued in a foreign country. The country of risk, noted parenthetically, is determined based on criteria described in Note 2G, "Foreign security country determination" in the Notes to Financial Statements. (c) The rate shown is the discount rate. See Notes to Financial Statements 38 PHOENIX MARKET NEUTRAL FUND SCHEDULE OF INVESTMENTS AND SECURITIES SOLD SHORT SEPTEMBER 30, 2007 VALUE SHARES (000) -------- -------- DOMESTIC COMMON STOCKS--91.4% AEROSPACE & DEFENSE--1.7% Cubic Corp. 11,500 $ 485 Teledyne Technologies, Inc.(b) 11,500 614 -------- 1,099 -------- AGRICULTURAL PRODUCTS--0.9% Corn Products International, Inc. 12,900 592 -------- AIRLINES--0.9% Continental Airlines, Inc. Class B(b) 18,500 611 -------- ALTERNATIVE CARRIERS--0.1% Premiere Global Services, Inc.(b) 6,800 86 -------- APPAREL RETAIL--0.7% Aeropostale, Inc.(b) 11,550 220 Ross Stores, Inc. 8,800 226 -------- 446 -------- APPAREL, ACCESSORIES & LUXURY GOODS--0.2% Warnaco Group, Inc. (The)(b) 4,000 156 -------- APPLICATION SOFTWARE--2.0% Actuate Corp.(b) 70,000 452 Cadence Design Systems, Inc.(b) 12,500 277 Synopsys, Inc.(b) 21,200 574 -------- 1,303 -------- AUTOMOTIVE RETAIL--0.4% AutoZone, Inc.(b) 2,100 244 -------- BROADCASTING & CABLE TV--0.5% CBS Corp. Class B 3,500 110 Sinclair Broadcast Group, Inc. Class A 19,500 235 -------- 345 -------- BUILDING PRODUCTS--1.4% Apogee Enterprises, Inc. 21,900 568 Lennox International, Inc. 10,000 338 -------- 906 -------- COAL & CONSUMABLE FUELS--0.3% USEC, Inc.(b) 20,800 213 -------- COMMERCIAL PRINTING--0.2% Consolidated Graphics, Inc.(b) 1,700 107 -------- COMMODITY CHEMICALS--0.9% Koppers Holdings, Inc. 15,500 598 -------- VALUE SHARES (000) -------- -------- COMMUNICATIONS EQUIPMENT--0.8% CommScope, Inc.(b) 4,800 $ 241 QUALCOMM, Inc. 6,500 275 -------- 516 -------- COMPUTER & ELECTRONICS RETAIL--0.8% Rex Stores Corp.(b) 25,800 499 -------- COMPUTER HARDWARE--1.8% Hewlett-Packard Co. 11,800 587 International Business Machines Corp. 5,100 601 -------- 1,188 -------- COMPUTER STORAGE & PERIPHERALS--0.9% Western Digital Corp.(b) 22,300 565 -------- CONSTRUCTION & ENGINEERING--0.6% Foster Wheeler Ltd.(b) 2,800 368 -------- CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--1.5% Astec Industries, Inc.(b) 900 52 Deere & Co. 3,900 579 Terex Corp.(b) 3,500 311 Wabtec Corp. 1,300 49 -------- 991 -------- DATA PROCESSING & OUTSOURCED SERVICES--0.2% Computer Sciences Corp.(b) 2,600 145 -------- DIVERSIFIED BANKS--0.8% Wells Fargo & Co. 15,100 538 -------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--0.7% ICF International, Inc.(b) 15,200 419 -------- DIVERSIFIED METALS & MINING--1.8% AMCOL International Corp. 18,600 615 Freeport-McMoRan Copper & Gold, Inc. (Indonesia)(c) 5,500 577 -------- 1,192 -------- DIVERSIFIED REITS--0.4% Investors Real Estate Trust 21,000 227 -------- ELECTRIC UTILITIES--2.6% Central Vermont Public Service Corp. 15,500 566 Edison International 4,700 261 FirstEnergy Corp. 4,100 260 Portland General Electric Co. 21,100 586 -------- 1,673 -------- ELECTRICAL COMPONENTS & EQUIPMENT--0.6% Smith (A.O.) Corp. 8,200 360 -------- VALUE SHARES (000) -------- -------- ELECTRONIC EQUIPMENT MANUFACTURERS--0.7% Checkpoint Systems, Inc.(b) 17,400 $ 459 -------- ENVIRONMENTAL & FACILITIES SERVICES--0.9% Republic Services, Inc. 18,300 599 -------- FERTILIZERS & AGRICULTURAL CHEMICALS--0.9% CF Industries Holdings, Inc. 7,800 592 -------- FOOTWEAR--0.9% NIKE, Inc. Class B 9,500 557 -------- GAS UTILITIES--0.7% Energen Corp. 7,400 423 -------- GENERAL MERCHANDISE STORES--0.7% Dollar Tree Stores, Inc.(b) 10,400 422 -------- HEALTH CARE EQUIPMENT--3.1% CONMED Corp.(b) 13,600 381 Greatbatch, Inc.(b) 18,500 492 Kinetic Concepts, Inc.(b) 9,400 529 Medtronic, Inc. 10,800 609 -------- 2,011 -------- HEALTH CARE FACILITIES--0.1% Hanger Orthopedic Group, Inc.(b) 3,200 36 -------- HEALTH CARE SERVICES--1.1% Amedisys, Inc.(b) 3,000 115 Apria Healthcare Group, Inc.(b) 5,700 148 RehabCare Group, Inc.(b) 11,800 208 Res-Care, Inc.(b) 9,200 210 -------- 681 -------- HEALTH CARE TECHNOLOGY--1.7% Eclipsys Corp.(b) 23,700 553 HLTH Corp.(b) 39,400 558 -------- 1,111 -------- HOME FURNISHINGS--0.2% Mohawk Industries, Inc.(b) 1,500 122 -------- HOME IMPROVEMENT RETAIL--0.6% Sherwin-Williams Co. (The) 5,400 355 -------- HOMEBUILDING--0.1% Avatar Holdings, Inc.(b) 1,300 65 -------- HOMEFURNISHING RETAIL--0.9% Williams-Sonoma, Inc. 18,000 587 -------- See Notes to Financial Statements 39 PHOENIX MARKET NEUTRAL FUND VALUE SHARES (000) -------- -------- HOUSEHOLD APPLIANCES--0.8% Snap-On, Inc. 4,700 $ 233 Stanley Works (The) 4,500 252 -------- 485 -------- HOUSEWARES & SPECIALTIES--2.2% CSS Industries, Inc. 1,800 65 Fortune Brands, Inc. 6,800 554 Jarden Corp.(b) 7,400 229 Tupperware Brands Corp. 18,300 576 -------- 1,424 -------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS--0.4% NRG Energy, Inc.(b) 6,200 262 -------- INDUSTRIAL MACHINERY--4.4% Actuant Corp. Class A 7,500 487 EnPro Industries, Inc.(b) 13,500 548 Harsco Corp. 9,800 581 Illinois Tool Works, Inc. 10,300 614 Parker Hannifin Corp. 5,300 593 -------- 2,823 -------- INSURANCE BROKERS--0.9% AON Corp. 13,100 587 -------- INTEGRATED OIL & GAS--0.9% Hess Corp. 9,000 599 -------- INTEGRATED TELECOMMUNICATION SERVICES--1.0% Atlantic Tele-Network, Inc. 17,100 622 -------- INTERNET RETAIL--0.5% priceline.com, Inc.(b) 3,800 337 -------- INTERNET SOFTWARE & SERVICES--2.1% eBay, Inc.(b) 15,600 609 United Online, Inc. 10,000 150 Vignette Corp.(b) 29,500 592 -------- 1,351 -------- INVESTMENT BANKING & BROKERAGE--0.5% Goldman Sachs Group, Inc. (The) 1,400 303 -------- IT CONSULTING & OTHER SERVICES--0.4% CIBER, Inc.(b) 12,800 100 SRA International, Inc. Class A(b) 4,600 129 -------- 229 -------- LEISURE PRODUCTS--1.7% JAKKS Pacific, Inc.(b) 20,700 553 Sturm, Ruger & Co. Inc.(b) 31,600 566 -------- 1,119 -------- LIFE & HEALTH INSURANCE--0.1% Nationwide Financial Services, Inc. Class A 1,500 81 -------- VALUE SHARES (000) -------- -------- MANAGED HEALTH CARE--0.9% WellCare Health Plans, Inc.(b) 5,300 $ 559 -------- MORTGAGE REITS--1.8% Annaly Mortgage Management, Inc. 38,300 610 Arbor Realty Trust, Inc. 14,300 270 iStar Financial, Inc. 8,300 282 -------- 1,162 -------- MULTI-LINE INSURANCE--0.2% Hartford Financial Services Group, Inc. (The) 1,400 130 -------- MULTI-UTILITIES--3.3% Black Hills Corp. 14,200 583 CenterPoint Energy, Inc. 25,100 402 PG&E Corp. 11,900 569 Public Service Enterprise Group, Inc. 6,500 572 -------- 2,126 -------- OFFICE ELECTRONICS--0.6% Xerox Corp.(b) 23,900 414 -------- OIL & GAS EQUIPMENT & SERVICES--1.1% Dawson Geophysical Co.(b) 6,200 481 Superior Energy Services, Inc.(b) 6,700 237 -------- 718 -------- OIL & GAS EXPLORATION & PRODUCTION--0.9% Bois d'Arc Energy, Inc.(b) 30,400 583 -------- OIL & GAS REFINING & MARKETING--0.8% Alon USA Energy, Inc. 7,200 243 Holly Corp. 4,300 257 -------- 500 -------- PACKAGED FOODS & MEATS--0.9% Flowers Foods, Inc. 19,400 423 Ralcorp Holdings, Inc.(b) 2,700 151 -------- 574 -------- PAPER PACKAGING--1.5% Packaging Corporation of America 22,400 651 Rock-Tenn Co. Class A 11,600 335 -------- 986 -------- PAPER PRODUCTS--0.8% Buckeye Technologies, Inc.(b) 36,000 545 -------- PERSONAL PRODUCTS--0.7% Elizabeth Arden, Inc.(b) 17,500 472 -------- PHARMACEUTICALS--1.4% Schering-Plough Corp. 9,100 288 Sciele Pharma, Inc.(b) 22,700 591 -------- 879 -------- VALUE SHARES (000) -------- -------- PROPERTY & CASUALTY INSURANCE--1.6% CNA Financial Corp. 6,200 $ 244 Darwin Professional Underwriters, Inc.(b) 5,300 114 Navigators Group, Inc. (The)(b) 2,500 136 RLI Corp. 9,700 550 -------- 1,044 -------- PUBLISHING--0.1% Meredith Corp. 1,600 92 -------- REAL ESTATE MANAGEMENT & DEVELOPMENT--1.2% CB Richard Ellis Group, Inc. Class A(b) 12,500 348 Jones Lang LaSalle, Inc. 3,900 401 -------- 749 -------- REGIONAL BANKS--4.2% Bank of Hawaii Corp. 10,900 576 Bank of The Ozarks, Inc. 10,700 327 Boston Private Financial Holdings, Inc. 9,900 275 S&T Bancorp, Inc. 12,300 395 SVB Financial Group(b) 5,800 275 Texas Capital Banshares, Inc.(b) 24,800 539 Vineyard National Bancorp 2,200 37 Wilshire Bancorp, Inc. 23,700 260 -------- 2,684 -------- RESTAURANTS--0.6% Darden Restaurants, Inc. 6,100 255 Morton's Restaurant Group, Inc.(b) 6,900 110 -------- 365 -------- RETAIL REITS--0.4% Ramco-Gershenson Properties Trust 8,400 262 -------- SEMICONDUCTOR EQUIPMENT--2.7% Applied Materials, Inc. 27,200 563 KLA-Tencor Corp. 9,500 530 Mattson Technology, Inc.(b) 33,000 286 Varian Semiconductor Equipment Associates, Inc.(b) 6,900 369 -------- 1,748 -------- SEMICONDUCTORS--3.8% Amkor Technology, Inc.(b) 49,700 573 Integrated Silicon Solution, Inc.(b) 15,100 95 IXYS Corp.(b) 13,300 139 ON Semiconductor Corp.(b) 45,100 566 Pericom Semiconductor Corp.(b) 44,500 521 Skyworks Solutions, Inc.(b) 61,600 557 -------- 2,451 -------- SOFT DRINKS--0.9% PepsiAmericas, Inc. 18,800 610 -------- See Notes to Financial Statements 40 PHOENIX MARKET NEUTRAL FUND VALUE SHARES (000) -------- -------- SPECIALIZED FINANCE--0.4% Encore Capital Group, Inc.(b) 12,100 $ 143 Nasdaq Stock Market, Inc. (The)(b) 3,800 143 -------- 286 -------- SPECIALIZED REITS--0.9% Potlatch Corp. 12,300 554 -------- SPECIALTY CHEMICALS--0.7% Fuller (H.B.) Co. 15,600 463 -------- SPECIALTY STORES--0.9% PetSmart, Inc. 17,200 549 -------- STEEL--2.3% AK Steel Holding Corp.(b) 13,100 576 Schnitzer Steel Industries, Inc. Class A 7,400 542 Steel Dynamics, Inc. 7,800 364 -------- 1,482 -------- SYSTEMS SOFTWARE--0.9% McAfee, Inc.(b) 15,900 554 -------- THRIFTS & MORTGAGE FINANCE--0.6% FirstFed Financial Corp.(b) 6,000 297 Ocwen Financial Corp.(b) 12,600 119 -------- 416 -------- TRADING COMPANIES & DISTRIBUTORS--1.6% Applied Industrial Technologies, Inc. 9,400 290 Kaman Corp. 12,200 422 MSC Industrial Direct Co., Inc. Class A 6,900 349 -------- 1,061 -------- WIRELESS TELECOMMUNICATION SERVICES--0.5% Syniverse Holdings, Inc.(b) 18,500 294 - ---------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $56,557) 58,941 - ---------------------------------------------------------------------------- FOREIGN COMMON STOCKS(c)--0.1% INTEGRATED TELECOMMUNICATION SERVICES--0.0% Telefonica Data Argentina S.A. (Argentina)(b)(e) 1,400 0 Telefonica Moviles S.A. (Argentina)(b)(e) 1,400 0 -------- 0 -------- PROPERTY & CASUALTY INSURANCE--0.1% ACE Ltd. (United States) 400 24 - ---------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $23) 24 - ---------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--91.5% (IDENTIFIED COST $56,580) 58,965 - ---------------------------------------------------------------------------- PAR VALUE (000) ------- SHORT-TERM INVESTMENTS--4.6% COMMERCIAL PAPER(d)--4.6% Praxair, Inc. 4.850% due 10/1/07 $ 2,975 $ 2,975 - ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $2,975) 2,975 - ---------------------------------------------------------------------------- TOTAL INVESTMENTS--96.1% (IDENTIFIED COST $59,555) 61,940(a) SECURITIES SOLD SHORT--(91.9)% (PROCEEDS $62,204) (59,214) Other assets and liabilities, net--95.8% 61,742 -------- NET ASSETS--100.0% $ 64,468 ======== SECURITIES SOLD SHORT--91.9% DOMESTIC COMMON STOCKS SOLD SHORT--91.9% SHARES -------- ADVERTISING--0.2% Harris Interactive, Inc. 23,200 100 -------- AEROSPACE & DEFENSE--1.5% Argon ST, Inc. 28,600 566 Hexcel Corp. 18,200 414 -------- 980 -------- AIRLINES--0.9% Northwest Airlines Corp. 32,500 578 -------- ALUMINUM--0.7% Kaiser Aluminum Corp. 6,400 452 -------- APPAREL RETAIL--2.3% Casual Male Retail Group, Inc. 36,400 326 Christopher & Banks Corp. 47,700 578 Limited Brands, Inc. 26,400 605 -------- 1,509 -------- APPAREL, ACCESSORIES & LUXURY GOODS--1.0% Cherokee, Inc. 3,300 126 Liz Claiborne, Inc. 15,200 522 -------- 648 -------- APPLICATION SOFTWARE--2.0% ACI Worldwide, Inc. 19,400 434 MSC.Software Corp. 19,900 271 Net 1 UEPS Technologies, Inc. 21,100 573 -------- 1,278 -------- ASSET MANAGEMENT & CUSTODY BANKS--0.4% Ares Capital Corp. 16,000 260 -------- AUTOMOTIVE RETAIL--0.3% Lithia Motors, Inc. Class A 12,000 205 -------- VALUE SHARES (000) -------- -------- BUILDING PRODUCTS--2.2% American Woodmark Corp. 12,300 $ 305 Gibraltar Industries, Inc. 29,700 550 Griffon Corp. 37,100 560 -------- 1,415 -------- COMMUNICATIONS EQUIPMENT--0.9% Motorola, Inc. 14,900 276 Sonus Networks, Inc. 44,900 274 -------- 550 -------- COMPUTER HARDWARE--0.9% Diebold, Inc. 13,300 604 -------- COMPUTER STORAGE & PERIPHERALS--1.9% Imation Corp. 24,000 588 Intermec, Inc. 23,500 614 -------- 1,202 -------- CONSTRUCTION & ENGINEERING--0.5% Insituform Technologies, Inc. Class A 23,200 353 -------- CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--3.0% Bucyrus International, Inc. Class A 6,200 452 Gehl Co. 24,500 547 Twin Disc, Inc. 7,500 437 Wabash National Corp. 44,300 500 -------- 1,936 -------- DISTILLERS & VINTNERS--1.0% Brown-Forman Corp. Class B 8,300 622 -------- DIVERSIFIED CHEMICALS--0.8% Cabot Corp. 14,800 526 -------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--0.8% LECG Corp. 5,800 86 Mobile Mini, Inc. 16,500 399 -------- 485 -------- DIVERSIFIED METALS & MINING--1.5% Compass Minerals International, Inc. 12,000 409 Titanium Metals Corp. 16,900 567 -------- 976 -------- ELECTRIC UTILITIES--2.6% Cleco Corp. 24,400 616 Great Plains Energy, Inc. 19,300 556 Hawaiian Electric Industries, Inc. 10,300 224 Pinnacle West Capital Corp. 6,800 269 -------- 1,665 -------- ELECTRICAL COMPONENTS & EQUIPMENT--0.6% First Solar, Inc. 3,100 365 -------- See Notes to Financial Statements 41 PHOENIX MARKET NEUTRAL FUND VALUE SHARES (000) -------- -------- ELECTRONIC EQUIPMENT MANUFACTURERS--0.7% Cognex Corp. 26,400 $ 469 -------- GAS UTILITIES--0.6% Chesapeake Utilities Corp. 11,200 381 -------- GENERAL MERCHANDISE STORES--0.6% 99 Cents Only Stores 38,400 394 -------- HEALTH CARE DISTRIBUTORS--0.4% CryoLife, Inc. 24,200 229 -------- HEALTH CARE EQUIPMENT--3.4% Advanced Medical Optics, Inc. 20,300 621 Boston Scientific Corp. 30,700 429 Hillenbrand Industries, Inc. 10,200 561 ResMed, Inc. 14,000 600 -------- 2,211 -------- HEALTH CARE FACILITIES--0.5% Five Star Quality Care, Inc. 20,200 166 Kindred Healthcare, Inc. 1,600 29 Odyssey HealthCare, Inc. 12,100 116 -------- 311 -------- HEALTH CARE SERVICES--1.3% Omnicare, Inc. 19,300 640 Visicu, Inc. 27,200 206 -------- 846 -------- HEALTH CARE TECHNOLOGY--1.9% Allscripts Healthcare Solutions, Inc. 23,300 630 Vital Images, Inc. 29,900 583 -------- 1,213 -------- HOME FURNISHINGS--0.1% Furniture Brands International, Inc. 6,000 61 -------- HOMEBUILDING--2.8% Horton (D.R.), Inc. 13,900 178 KB Home 6,900 173 M/I Homes, Inc. 38,900 540 Meritage Homes Corp. 6,700 95 Pulte Homes, Inc. 42,700 581 Standard-Pacific Corp. 11,100 61 Toll Brothers, Inc. 9,900 198 -------- 1,826 -------- HOMEFURNISHING RETAIL--0.3% Haverty Furniture Cos., Inc. 18,500 162 -------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS--0.7% Dynegy, Inc. 46,100 426 -------- INDUSTRIAL MACHINERY--2.7% Altra Holdings, Inc. 4,200 70 ESCO Technologies, Inc. 17,300 575 Flow International Corp. 63,700 562 Met-Pro Corp. 3,200 52 VALUE SHARES (000) -------- -------- INDUSTRIAL MACHINERY--CONTINUED Watts Water Technologies, Inc. Class A 16,600 $ 509 -------- 1,768 -------- INDUSTRIAL REITS--0.4% First Potomac Realty Trust 12,400 270 -------- INSURANCE BROKERS--0.8% Marsh & McLennan Cos., Inc. 21,400 546 -------- INTEGRATED TELECOMMUNICATION SERVICES--1.1% Fairpoint Communications, Inc. 32,300 609 Iowa Telecommunications Services, Inc. 4,500 89 -------- 698 -------- INTERNET RETAIL--0.5% US Auto Parts Network, Inc. 36,000 314 -------- INTERNET SOFTWARE & SERVICES--2.1% Internet Capital Group, Inc. 13,000 156 Knot, Inc. (The) 28,500 606 Liquidity Services, Inc. 51,300 564 -------- 1,326 -------- IT CONSULTING & OTHER SERVICES--0.6% Lionbridge Technologies, Inc. 28,200 112 Ness Technologies, Inc. 13,700 150 Sapient Corp. 16,800 113 -------- 375 -------- LEISURE PRODUCTS--1.7% MarineMax, Inc. 35,200 512 Nautilus Group, Inc. (The) 74,600 595 -------- 1,107 -------- LIFE & HEALTH INSURANCE--0.4% Conseco, Inc. 16,700 267 -------- MORTGAGE REITS--0.3% Redwood Trust, Inc. 6,500 216 -------- MOVIES & ENTERTAINMENT--0.3% Lakes Entertainment, Inc. 21,100 201 -------- MULTI-SECTOR HOLDINGS--0.2% Resource America, Inc. 9,400 148 -------- MULTI-UTILITIES--3.4% Alliant Energy Corp. 10,700 410 Avista Corp. 28,300 576 Integrys Energy Group, Inc. 11,200 574 TECO Energy, Inc. 37,000 608 -------- 2,168 -------- OFFICE ELECTRONICS--0.6% Zebra Technologies Corp. Class A 11,500 420 -------- VALUE SHARES (000) -------- -------- OFFICE REITS--1.0% Maguire Properties, Inc. 24,800 $ 641 -------- OFFICE SERVICES & SUPPLIES--0.9% Pitney Bowes, Inc. 12,800 581 -------- OIL & GAS EQUIPMENT & SERVICES--1.0% Cal Dive International, Inc. 17,000 255 Horizon Offshore, Inc. 25,400 419 -------- 674 -------- OIL & GAS EXPLORATION & PRODUCTION--3.1% CNX Gas Corp. 9,600 276 EXCO Resources, Inc. 35,600 589 Parallel Petroleum Corp. 14,600 248 Tyco Resources, Inc. 29,100 261 Whiting Petroleum Corp. 14,000 622 -------- 1,996 -------- PACKAGED FOODS & MEATS--1.8% Lancaster Colony Corp. 11,100 424 Maui Land & Pineapple Co.,Inc. 5,600 170 Tootsie Roll Industries, Inc. 21,500 570 -------- 1,164 -------- PAPER PACKAGING--1.4% Bemis Co., Inc. 19,900 579 Chesapeake Corp. 35,200 298 -------- 877 -------- PAPER PRODUCTS--0.9% Bowater, Inc. 40,800 609 -------- PERSONAL PRODUCTS--0.7% Bare Escentuals, Inc. 17,700 440 -------- PHARMACEUTICALS--1.4% Medicines Co. (The) 36,700 653 Medicis Pharmaceutical Corp. Class A 9,100 278 -------- 931 -------- PROPERTY & CASUALTY INSURANCE--2.1% Fidelity National Financial, Inc. Class A 11,500 201 Infinity Property & Casualty Corp. 7,100 286 PMA Capital Corp. Class A 2,300 22 SCPIE Holdings, Inc. 6,300 140 Stewart Information Services Corp. 16,600 569 Wesco Financial Corp. 300 119 -------- 1,337 -------- PUBLISHING--0.1% McClatchy Co. (The) Class A 3,300 66 -------- See Notes to Financial Statements 42 PHOENIX MARKET NEUTRAL FUND VALUE SHARES (000) -------- -------- REAL ESTATE MANAGEMENT & DEVELOPMENT--1.2% Forest City Enterprises, Inc. Class A 7,100 $ 392 Move, Inc. 142,900 394 -------- 786 -------- REGIONAL BANKS--5.1% BankFinancial Corp. 17,000 269 Capital Corporation of the West 20,700 381 Citizens Banking Corp. 30,300 488 Fifth Third Bancorp 6,700 227 FNB Corp. 20,000 331 Investors Bancorp, Inc. 40,300 571 Irwin Financial Corp. 51,300 565 National City Corp. 16,200 406 Prosperity Bancshares, Inc. 1,100 37 -------- 3,275 -------- RESIDENTIAL REITS--0.4% Equity Residential 6,000 254 -------- RESTAURANTS--0.5% Panera Bread Co. Class A 5,400 220 Peet's Coffee & Tea, Inc. 4,100 115 -------- 335 -------- SEMICONDUCTOR EQUIPMENT--2.2% Axcelis Technologies, Inc. 67,800 346 Semitool, Inc. 46,000 446 Veeco Instruments, Inc. 32,900 638 -------- 1,430 -------- SEMICONDUCTORS--4.9% Cirrus Logic, Inc. 85,300 546 Integrated Device Technology, Inc. 6,200 96 LSI Corp. 78,200 580 PLX Technology, Inc. 15,100 163 Rambus, Inc. 30,100 575 SiRF Technology Holdings, Inc. 29,100 622 Volterra Semiconductor Corp. 45,300 556 -------- 3,138 -------- SPECIALIZED FINANCE--0.2% Nymex Holdings, Inc. 1,000 130 -------- VALUE SHARES (000) -------- -------- SPECIALIZED REITS--1.4% Healthcare Realty Trust, Inc. 22,800 $ 608 Public Storage, Inc. 3,600 283 -------- 891 -------- SPECIALTY CHEMICALS--1.6% Ferro Corp. 30,500 610 Symyx Technologies, Inc. 49,400 429 -------- 1,039 -------- SPECIALTY STORES--1.3% Sally Beauty Holdings, Inc. 69,700 589 Zale Corp. 10,600 245 -------- 834 -------- STEEL--0.6% Olympic Steel, Inc. 14,000 380 -------- SYSTEMS SOFTWARE--1.0% Quality Systems, Inc. 17,200 630 -------- THRIFTS & MORTGAGE FINANCE--0.6% Berkshire Hills Bancorp, Inc. 3,400 103 NewAlliance Bancshares, Inc. 18,200 267 -------- 370 -------- TRADING COMPANIES & DISTRIBUTORS--1.7% BlueLinx Holdings, Inc. 58,300 410 Electro Rent Corp. 23,600 331 NuCo2, Inc. 13,100 337 -------- 1,078 -------- WIRELESS TELECOMMUNICATION SERVICES--0.4% American Tower Corp. Class A 6,100 266 - ---------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS SOLD SHORT (PROCEEDS $62,204) 59,214 - ---------------------------------------------------------------------------- TOTAL SECURITIES SOLD SHORT (PROCEEDS $62,204) 59,214(f) - ---------------------------------------------------------------------------- (a) Federal Income Tax Information (reported in 000's): Net unrealized appreciation of investment securities is comprised of gross appreciation of $3,370 and gross depreciation of $1,721 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $60,291. (b) Non-income producing. (c) A security is considered to be foreign if the security is issued in a foreign country. The country of risk, noted parenthetically, is determined based on criteria described in Note 2G "Foreign Security Country Determination" in the Notes to Financial Statements. (d) The rate shown is the discount rate. (e) Illiquid and restricted security. Security valued at fair value as determined in good faith by or under the direction of the Trustees. At September 30, 2007, these securities amounted to a value of $0 or 0% of net assets. For acquisition information, see Note 7 "Illiquid and Restricted Securities" in the Notes to Financial Statements. (f) Federal Tax Information (reported in 000's): Net unrealized appreciation of securities sold short is comprised of gross appreciation of $3,879, and gross depreciation of $1,574 for federal income tax purposes. At September 30, 2007, the aggregate proceeds of securities sold short for federal income tax purposes was $(61,519). See Notes to Financial Statements 43 PHOENIX DIVERSIFIER PHOLIO(SM) SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 VALUE SHARES (000) -------- -------- MUTUAL FUNDS--54.0% DOMESTIC EQUITY FUNDS(c)--34.3% Phoenix Market Neutral Fund Class A 2,436,578 $ 25,657 Phoenix Real Estate Securities Fund Class A 1,036,919 35,360 -------- 61,017 -------- FOREIGN EQUITY FUND(c)--19.7% Phoenix Global Utilities Fund Class A 2,554,379 34,995 - ---------------------------------------------------------------------------- TOTAL MUTUAL FUNDS (IDENTIFIED COST $94,612) 96,012 - ---------------------------------------------------------------------------- EXCHANGE-TRADED FUNDS--45.6% iShares S&P GSSI Natural Resources Index Fund 140,770 18,121 PowerShares DB Commodity Index Tracking Fund(b) 993,490 27,927 PowerShares DB G10 Currency Harvest Fund(b) 454,508 12,926 SPDR DJ Wilshire International Real Estate Exchange Tracking Fund 344,410 22,128 - ---------------------------------------------------------------------------- TOTAL EXCHANGE-TRADED FUNDS (IDENTIFIED COST $72,994) 81,102 - ---------------------------------------------------------------------------- TOTAL LONG-TERM INVESTMENTS--99.6% (IDENTIFIED COST $167,606) 177,114 - ---------------------------------------------------------------------------- PAR VALUE (000) -------- SHORT-TERM INVESTMENTS--0.6% COMMERCIAL PAPER(d)--0.6% Sysco Corp. 4.950% due 10/1/07 $1,125 1,125 - ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $1,125) 1,125 - ---------------------------------------------------------------------------- TOTAL INVESTMENTS--100.2% (IDENTIFIED COST $168,731) 178,239(a) Other assets and liabilities, net--(0.2)% (276) -------- NET ASSETS--100.0% $177,963 ======== (a) Federal Income Tax Information (reported in 000's): Net unrealized appreciation of investment securities is comprised of gross appreciation of $9,660 and gross depreciation of $1,826 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $170,405. (b) Non-income producing. (c) Affiliated Fund. (d) The rate shown is the discount rate. See Notes to Financial Statements 44 PHOENIX WEALTH ACCUMULATOR PHOLIO(SM) SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 VALUE SHARES (000) -------- -------- MUTUAL FUNDS--100.0% DOMESTIC EQUITY FUNDS(c)--74.7% Phoenix Capital Growth Fund Class A(b) 64,217 $ 1,125 Phoenix Dynamic Growth Fund Class A(b) 54,579 694 Phoenix Growth & Income Fund Class A 111,196 2,079 Phoenix Growth Opportunities Fund Class A(b) 70,799 1,131 Phoenix Market Neutral Fund Class A 86,088 907 Phoenix Mid-Cap Value Fund Class A 26,326 697 Phoenix Quality Small-Cap Fund Class A 27,276 332 Phoenix Real Estate Securities Fund Class A 16,558 565 Phoenix Small-Cap Growth Fund Class A(b) 9,376 369 Phoenix Small-Cap Sustainable Growth Fund Class A(b) 31,061 329 Phoenix Small-Cap Value Fund Class A 19,742 317 Phoenix Value Opportunities Fund Class A 150,165 2,006 -------- 10,551 -------- FOREIGN EQUITY FUNDS(c)--25.3% Phoenix Foreign Opportunities Fund Class A 42,979 1,228 Phoenix Global Utilities Fund Class A 41,163 563 Phoenix International Strategies Fund Class A 111,875 1,776 -------- 3,567 - ---------------------------------------------------------------------------- TOTAL MUTUAL FUNDS (IDENTIFIED COST $12,583) 14,118 - ---------------------------------------------------------------------------- TOTAL LONG-TERM INVESTMENTS--100.0% (IDENTIFIED COST $12,583) 14,118 - ---------------------------------------------------------------------------- PAR VALUE VALUE (000) (000) -------- -------- SHORT-TERM INVESTMENTS--1.3% COMMERCIAL PAPER(d)--1.3% UBS Finance Delaware LLC 4.750% due 10/1/07 $ 185 $ 185 - ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $185) 185 - ---------------------------------------------------------------------------- TOTAL INVESTMENTS--101.3% (IDENTIFIED COST $12,768) 14,303(a) Other assets and liabilities, net--(1.3)% (178) -------- NET ASSETS--100.0% $ 14,125 ======== (a) Federal Income Tax Information (reported in 000's): Net unrealized appreciation of investment securities is comprised of gross appreciation of $1,568 and gross depreciation of $76 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $12,811. (b) Non-income producing. (c) Affiliated Fund. (d) The rate shown is the discount rate. See Notes to Financial Statements 45 PHOENIX WEALTH BUILDER PHOLIO(SM) SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 VALUE SHARES (000) -------- -------- MUTUAL FUNDS--99.6% DOMESTIC EQUITY FUNDS(c)--59.6% Phoenix Capital Growth Fund Class A(b) 436,845 $ 7,654 Phoenix Dynamic Growth Fund Class A(b) 437,373 5,559 Phoenix Growth & Income Fund Class A 795,108 14,869 Phoenix Growth Opportunities Fund Class A(b) 493,328 7,883 Phoenix Market Neutral Fund Class A 852,664 8,979 Phoenix Mid-Cap Value Fund Class A 196,633 5,206 Phoenix Quality Small-Cap Fund Class A 214,162 2,604 Phoenix Real Estate Securities Fund Class A 168,314 5,739 Phoenix Small-Cap Growth Fund Class A(b) 72,405 2,848 Phoenix Small-Cap Sustainable Growth Fund Class A(b) 243,203 2,576 Phoenix Small-Cap Value Fund Class A 150,492 2,417 Phoenix Value Opportunities Fund Class A 1,091,461 14,582 -------- 80,916 -------- FOREIGN EQUITY FUNDS(c)--20.7% Phoenix Foreign Opportunities Fund Class A 310,689 8,879 Phoenix Global Utilities Fund Class A 421,329 5,772 Phoenix International Strategies Fund Class A 847,123 13,444 -------- 28,095 -------- DOMESTIC FIXED INCOME FUNDS(c)--19.3% Phoenix Bond Fund Class A 1,019,878 10,423 Phoenix Insight High Yield Bond Fund Class A 207,412 2,545 Phoenix Institutional Bond Fund Class Y 339,865 10,580 Phoenix Multi-Sector Short TermBond Fund Class A 582,805 2,739 -------- 26,287 - ---------------------------------------------------------------------------- TOTAL MUTUAL FUNDS (IDENTIFIED COST $114,971) 135,298 - ---------------------------------------------------------------------------- TOTAL LONG-TERM INVESTMENTS--99.6% (IDENTIFIED COST $114,971) 135,298 - ---------------------------------------------------------------------------- PAR VALUE VALUE (000) (000) -------- -------- SHORT-TERM INVESTMENTS--2.3% COMMERCIAL PAPER(d)--2.3% Northern Illinois Gas Co. 4.900% due 10/1/07 $ 3,075 $ 3,075 - ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $3,075) 3,075 - ---------------------------------------------------------------------------- TOTAL INVESTMENTS--101.9% (IDENTIFIED COST $118,046) 138,373(a) Other assets and liabilities, net--(1.9)% (2,529) -------- NET ASSETS--100.0% $135,844 ======== (a) Federal Income Tax Information (reported in 000's): Net unrealized appreciation of investment securities is comprised of gross appreciation of $21,223 and gross depreciation of $1,296 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $118,446. (b) Non-income producing. (c) Affiliated Fund. (d) The rate shown is the discount rate. See Notes to Financial Statements 46 PHOENIX WEALTH GUARDIAN PHOLIO(SM) SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 VALUE SHARES (000) -------- -------- MUTUAL FUNDS--99.6% DOMESTIC EQUITY FUNDS(c)--46.8% Phoenix Capital Growth Fund Class A(b) 163,528 $ 2,864 Phoenix Dynamic Growth Fund Class A(b) 140,549 1,787 Phoenix Growth & Income Fund Class A 286,738 5,362 Phoenix Growth Opportunities Fund Class A(b) 189,366 3,026 Phoenix Market Neutral Fund Class A 349,510 3,680 Phoenix Mid-Cap Value Fund Class A 69,963 1,853 Phoenix Quality Small-Cap Fund Class A 77,106 938 Phoenix Real Estate Securities Fund Class A 38,163 1,301 Phoenix Small-Cap Growth Fund Class A(b) 25,017 984 Phoenix Small-Cap Sustainable Growth Fund Class A(b) 87,527 927 Phoenix Small-Cap Value Fund Class A 56,595 909 Phoenix Value Opportunities Fund Class A 403,820 5,395 -------- 29,026 -------- FOREIGN EQUITY FUNDS(c)--14.3% Phoenix Foreign Opportunities Fund Class A 95,909 2,741 Phoenix Global Utilities Fund Class A 98,337 1,347 Phoenix International Strategies Fund Class A 303,510 4,817 -------- 8,905 -------- DOMESTIC FIXED INCOME FUNDS(c)--38.5% Phoenix Bond Fund Class A 969,088 9,904 Phoenix Insight High Yield Bond Fund Class A 194,128 2,382 Phoenix Institutional Bond Fund Class Y 297,417 9,259 Phoenix Multi-Sector Short Term Bond Fund Class A 494,775 2,325 -------- 23,870 - ---------------------------------------------------------------------------- TOTAL MUTUAL FUNDS (IDENTIFIED COST $55,191) 61,801 - ---------------------------------------------------------------------------- TOTAL LONG-TERM INVESTMENTS--99.6% (IDENTIFIED COST $55,191) 61,801 - ---------------------------------------------------------------------------- PAR VALUE VALUE (000) (000) -------- -------- SHORT-TERM INVESTMENTS--1.6% COMMERCIAL PAPER(d)--1.6% Northern Illinois Gas Co. 4.900% due 10/1/07 $ 990 $ 990 - ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $990) 990 - ---------------------------------------------------------------------------- TOTAL INVESTMENTS--101.2% (IDENTIFIED COST $56,181) 62,791(a) Other assets and liabilities, net--(1.2)% (729) -------- NET ASSETS--100.0% $ 62,062 ======== (a) Federal Income Tax Information (reported in 000's): Net unrealized appreciation of investment securities is comprised of gross appreciation of $6,973 and gross depreciation of $690 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $56,508. (b) Non-income producing. (c) Affiliated Fund. (d) The rate shown is the discount rate. See Notes to Financial Statements 47 PHOENIX BOND FUND SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 PAR VALUE VALUE (000) (000) -------- -------- U.S. GOVERNMENT SECURITIES--25.3% U.S. TREASURY BONDS--0.9% U.S. Treasury Bond 6.250% due 8/15/23 $ 660 $ 758 -------- U.S. TREASURY NOTES--24.4% U.S. Treasury Note 4.875% due 5/15/09 10,095 10,239 4.875% due 6/30/12 8,355 8,589 4.750% due 8/15/17 2,410 2,443 -------- 21,271 - ---------------------------------------------------------------------------- TOTAL U.S. GOVERNMENT SECURITIES (IDENTIFIED COST $21,603) 22,029 - ---------------------------------------------------------------------------- AGENCY MORTGAGE-BACKED SECURITIES--28.5% FHLMC 7.500% due 7/1/09 8 9 7.500% due 4/1/14 50 52 7.000% due 4/1/16 36 37 7.000% due 1/1/33 290 301 5.524% due 2/1/34(c) 196 199 FHLMC 2503 B 5.500% due 9/15/17 309 313 FHLMC 2764 HW 5.000% due 3/15/19 455 443 FNMA 7.000% due 5/1/14 36 37 8.000% due 1/1/15 6 6 7.121% due 7/1/33(c) 114 115 5.965% due 9/1/33(c) 87 88 5.509% due 11/1/33(c) 183 185 5.489% due 12/1/33(c) 99 100 5.594% due 3/1/34(c) 154 158 5.513% due 4/1/34(c) 141 144 4.500% due 1/1/35 470 437 5.278% due 5/1/35(c) 3,565 3,559 5.000% due 2/1/37 6,089 5,810 5.500% due 2/1/37 7,601 7,445 5.000% due 3/1/37 5,628 5,369 - ---------------------------------------------------------------------------- TOTAL AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $25,159) 24,807 - ---------------------------------------------------------------------------- DOMESTIC CORPORATE BONDS--26.0% AEROSPACE & DEFENSE--0.6% Honeywell International, Inc. 5.625% due 8/1/12 225 229 L-3 Communications Corp. 5.875% due 1/15/15 60 58 United Technologies Corp. 4.875% due 5/1/15 215 207 -------- 494 -------- APPAREL, ACCESSORIES & LUXURY GOODS--0.1% Levi Strauss & Co. 9.750% due 1/15/15 60 63 -------- APPLICATION SOFTWARE--0.2% Intuit, Inc. 5.750% due 3/15/17 155 148 -------- PAR VALUE VALUE (000) (000) -------- -------- ASSET MANAGEMENT & CUSTODY BANKS--0.1% Janus Capital Group, Inc. 6.250% due 6/15/12 $ 120 $ 122 -------- AUTOMOBILE MANUFACTURERS--0.3% Daimler Finance NA LLC 5.750% due 9/8/11 225 227 -------- AUTOMOTIVE RETAIL--0.1% Hertz Corp. 8.875% due 1/1/14 85 88 -------- BROADCASTING & CABLE TV--0.6% Charter Communications Holdings I LLC 11.750% due 5/15/14(c) 55 51 EchoStar DBS Corp. 7.125% due 2/1/16 105 109 Time Warner Cable, Inc. 144A 5.850% due 5/1/17(b) 350 340 United Artists Theatre Circuit, Inc. Series BD-1 9.300% due 7/1/15 10 10 -------- 510 -------- BUILDING PRODUCTS--0.1% Gibraltar Industries, Inc. Series B 8.000% due 12/1/15 10 9 Goodman Global Holdings, Inc. 7.875% due 12/15/12 85 84 -------- 93 -------- CASINOS & GAMING--0.2% American Real Estate Partners LP/American Real Estate Finance Corp. 7.125% due 2/15/13 85 81 MGM MIRAGE 6.750% due 9/1/12 50 50 6.625% due 7/15/15 20 19 7.625% due 1/15/17 15 15 OED Corp./Diamond Jo LLC 8.750% due 4/15/12 30 30 -------- 195 -------- COAL & CONSUMABLE FUELS--0.1% Arch Western Finance LLC 6.750% due 7/1/13 65 64 -------- COMMERCIAL PRINTING--0.2% Donnelley (R.R.) & Sons Co. 5.625% due 1/15/12 105 106 6.125% due 1/15/17 105 104 -------- 210 -------- COMMODITY CHEMICALS--0.1% Lyondell Chemical Co. 6.875% due 6/15/17 40 44 -------- PAR VALUE VALUE (000) (000) -------- -------- COMMUNICATIONS EQUIPMENT--0.8% Cisco Systems, Inc. 5.500% due 2/22/16 $ 640 $ 636 Dycom Industries, Inc. 8.125% due 10/15/15 40 41 -------- 677 -------- CONSTRUCTION MATERIALS--0.1% Momentive Performance Materials, Inc. 144A 9.750% due 12/1/14(b) 60 60 -------- CONSUMER FINANCE--2.1% American Express Co. 6.150% due 8/28/17 145 146 American General Finance Corp. 4.000% due 3/15/11 450 429 6.500% due 9/15/17 180 182 Capital One Financial Corp. 5.700% due 9/15/11 215 215 6.150% due 9/1/16 260 254 Ford Motor Credit Co. LLC 7.000% due 10/1/13 40 36 GMAC LLC 6.750% due 12/1/14 205 186 Residential Capital LLC 7.375% due 6/30/10 235 195 7.500% due 4/17/13 235 190 -------- 1,833 -------- DEPARTMENT STORES--0.0% Bon-Ton Stores, Inc. (The) 10.250% due 3/15/14 40 38 -------- DIVERSIFIED BANKS--0.3% Wells Fargo & Co. 5.125% due 9/15/16 275 264 -------- DIVERSIFIED CAPITAL MARKETS--0.3% UBS Preferred Funding Trust V 6.243% due 5/15/49(c) 260 256 -------- DIVERSIFIED CHEMICALS--0.0% Huntsman International LLC 7.875% due 11/15/14 15 16 7.375% due 1/1/15 20 21 -------- 37 -------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--0.3% FTI Consulting, Inc. 7.750% due 10/1/16 55 57 Harland Clarke Holdings Corp. 9.500% due 5/15/15 40 36 10.308% due 5/15/15(c) 45 40 International Lease Finance Corp. 5.625% due 9/20/13 130 129 -------- 262 -------- See Notes to Financial Statements 48 PHOENIX BOND FUND PAR VALUE VALUE (000) (000) -------- -------- DIVERSIFIED METALS & MINING--0.2% Freeport-McMoRan Copper & Gold, Inc. (Indonesia) 8.375% due 4/1/17(d) $ 130 $ 142 -------- ELECTRIC UTILITIES--1.5% Appalachian Power Co. 5.550% due 4/1/11 285 284 Bruce Mansfield Unit 12 144A 6.850% due 6/1/34(b) 315 321 Commonwealth Edison Co. 6.150% due 9/15/17 105 106 Florida Power Corp. 6.650% due 7/15/11 320 335 Nevada Power Co. Series R 6.750% due 7/1/37 110 111 Reliant Energy, Inc. 6.750% due 12/15/14 125 127 -------- 1,284 -------- FERTILIZERS & AGRICULTURAL CHEMICALS--0.1% Tronox Worldwide LLC/Tronox Finance Corp. 9.500% due 12/1/12 80 80 -------- FOOD RETAIL--0.5% Safeway, Inc. 6.500% due 3/1/11 425 445 Stater Brothers Holdings, Inc. 8.125% due 6/15/12 10 10 -------- 455 -------- GAS UTILITIES--0.2% Atmos Energy Corp. 6.350% due 6/15/17 190 193 -------- HEALTH CARE DISTRIBUTORS--0.1% McKesson Corp. 5.250% due 3/1/13 100 99 -------- HEALTH CARE FACILITIES--0.2% Community Health Systems, Inc. 144A 8.875% due 7/15/15(b) 60 62 HCA, Inc. 144A 9.250% due 11/15/16(b) 110 117 -------- 179 -------- HEALTH CARE SERVICES--0.4% Fresenius Medical Care Capital Trust II 7.875% due 2/1/08 155 156 Omnicare, Inc. 6.875% due 12/15/15 60 56 Quest Diagnostics, Inc. 6.400% due 7/1/17 150 151 -------- 363 -------- HOME FURNISHINGS--0.6% Mohawk Industries, Inc. 5.750% due 1/15/11 150 151 6.125% due 1/15/16 355 354 -------- 505 -------- PAR VALUE VALUE (000) (000) -------- -------- HOMEBUILDING--0.3% Horton (D.R.), Inc. 7.500% due 12/1/07 $ 234 $ 234 -------- HYPERMARKETS & SUPER CENTERS--0.2% Costco Wholesale Corp. 5.500% due 3/15/17 165 161 -------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS--0.6% MidAmerican Energy Co. 5.650% due 7/15/12 145 148 5.800% due 10/15/36 245 231 TXU Energy Co. Series O 4.800% due 11/15/09 150 152 -------- 531 -------- INTEGRATED OIL & GAS--1.5% Conoco Funding Co. 6.350% due 10/15/11 1,000 1,043 ConocoPhillips Canada Funding Co. 5.625% due 10/15/16 230 229 -------- 1,272 -------- INTEGRATED TELECOMMUNICATION SERVICES--0.9% AT&T, Inc. 6.250% due 3/15/11 420 432 Hughes Network Systems LLC/Hughes Network Systems Finance Corp. 9.500% due 4/15/14 100 101 Qwest Corp. 8.875% due 3/15/12 85 93 Qwest Corp. 144A 6.500% due 6/1/17(b) 30 30 Telcordia Technologies, Inc. 144A(b) 9.110% due 7/15/12(c) 60 56 10.000% due 3/15/13 50 42 -------- 754 -------- LIFE & HEALTH INSURANCE--1.0% Lincoln National Corp. 5.650% due 8/27/12 415 417 6.050% due 4/20/17(c) 50 48 Protective Life Secured Trust 4.000% due 4/1/11 300 290 UnumProvident Finance Co. plc 144A 6.850% due 11/15/15(b) 135 138 -------- 893 -------- LIFE SCIENCES TOOLS & SERVICES--0.0% Fisher Scientific International, Inc. 6.125% due 7/1/15 10 10 -------- MANAGED HEALTH CARE--0.4% Wellpoint, Inc. 5.000% due 1/15/11 400 396 -------- PAR VALUE VALUE (000) (000) -------- -------- METAL & GLASS CONTAINERS--0.0% AEP Industries, Inc. 7.875% due 3/15/13 $ 25 $ 24 -------- MOVIES & ENTERTAINMENT--0.5% Time Warner, Inc. 5.875% due 11/15/16 110 108 6.500% due 11/15/36 110 106 Viacom, Inc. 5.750% due 4/30/11 225 227 -------- 441 -------- MULTI-LINE INSURANCE--0.5% Genworth Financial, Inc. 6.150% due 11/15/49(c) 135 126 Genworth Global Funding Trusts 5.125% due 3/15/11 160 159 Loews Corp. 5.250% due 3/15/16 170 164 -------- 449 -------- MULTI-UTILITIES--0.1% Aquila, Inc. 14.875% due 7/1/12 105 133 -------- OFFICE REITS--0.1% Duke Realty LP 5.625% due 8/15/11 75 75 -------- OFFICE SERVICES & SUPPLIES--0.4% IKON Office Solutions, Inc. 7.750% due 9/15/15 170 172 Pitney Bowes, Inc. 5.750% due 9/15/17 155 155 -------- 327 -------- OIL & GAS EQUIPMENT & SERVICES--0.0% Seitel, Inc. 9.750% due 2/15/14 40 38 -------- OIL & GAS EXPLORATION & PRODUCTION--1.0% Chesapeake Energy Corp. 6.625% due 1/15/16 100 100 EOG Resources, Inc. 5.875% due 9/15/17 380 380 Pioneer Natural Resources Co. 6.650% due 3/15/17 50 47 6.875% due 5/1/18 50 47 Plains Exploration & Production Co. 7.000% due 3/15/17 40 37 XTO Energy, Inc . 5.900% due 8/1/12 295 301 -------- 912 -------- OIL & GAS REFINING & MARKETING--0.4% Valero Energy Corp. 6.125% due 6/15/17 310 312 -------- OIL & GAS STORAGE & TRANSPORTATION--0.6% Enbridge Energy Partners LP 5.875% due 12/15/16 120 118 Kinder Morgan Energy Partners LP 5.850% due 9/15/12 145 146 7.300% due 8/15/33 150 157 See Notes to Financial Statements 49 PHOENIX BOND FUND PAR VALUE VALUE (000) (000) -------- -------- OIL & GAS STORAGE & TRANSPORTATION--CONTINUED Pacific Energy Partners LP/Pacific Energy Finance Corp. 6.250% due 9/15/15 $ 75 $ 73 -------- 494 -------- OTHER DIVERSIFIED FINANCIAL SERVICES--1.8% Bank of America Corp. 5.750% due 8/15/16 395 394 Citigroup, Inc. 5.000% due 9/15/14 330 318 General Electric Capital Corp. 4.875% due 10/21/10 265 265 5.625% due 9/15/17 240 240 JPMorgan Chase & Co. 5.750% due 1/2/13 350 355 -------- 1,572 -------- PACKAGED FOODS & MEATS--0.5% General Mills, Inc. 5.650% due 9/10/12 130 131 Kraft Foods, Inc. 6.500% due 8/11/17 245 253 Pilgrim's Pride Corp. 8.375% due 5/1/17 60 62 -------- 446 -------- PAPER PRODUCTS--0.2% Exopac Holding Corp. 11.250% due 2/1/14 45 47 Mercer International, Inc. 9.250% due 2/15/13 130 128 -------- 175 -------- PHARMACEUTICALS--0.9% Johnson & Johnson 5.150% due 8/15/12 305 310 Wyeth 5.500% due 3/15/13 525 524 -------- 834 -------- PRECIOUS METALS & MINERALS--0.1% PNA Group, Inc. 10.750% due 9/1/16 55 56 -------- PROPERTY & CASUALTY INSURANCE--0.7% Chubb Corp. 6.375% due 3/29/37(c) 165 164 CNA Financial Corp. 6.500% due 8/15/16 480 487 -------- 651 -------- PUBLISHING--0.1% Idearc, Inc. 8.000% due 11/15/16 85 85 -------- RAILROADS--0.2% Burlington Northern Santa Fe Corp. 6.150% due 5/1/37 150 145 -------- PAR VALUE VALUE (000) (000) -------- -------- REAL ESTATE MANAGEMENT & DEVELOPMENT--0.2% Colonial Realty LP 6.050% due 9/1/16 $ 200 $ 193 -------- REGIONAL BANKS--0.3% SunTrust Banks, Inc. 6.000% due 9/11/17 240 243 -------- RESIDENTIAL REITS--0.6% AvalonBay Communities, Inc. 5.750% due 9/15/16 145 141 ERP Operating LP 5.375% due 8/1/16 270 253 5.750% due 6/15/17 165 157 -------- 551 -------- RESTAURANTS--0.5% Starbucks Corp. 6.250% due 8/15/17 480 484 -------- RETAIL REITS--0.3% Simon Property Group LP 5.600% due 9/1/11 235 235 -------- SPECIALIZED REITS--0.2% Felcor Lodging LP 8.500% due 6/1/11 30 32 7.260% due 12/1/11(c) 95 95 Ventas Realty LP/Ventas Capital Corp. 6.750% due 4/1/17 20 20 -------- 147 -------- TOBACCO--0.2% Reynolds American, Inc. 7.300% due 7/15/15 40 43 7.750% due 6/1/18 90 96 -------- 139 -------- TRUCKING--0.1% Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 7.750% due 5/15/16 85 84 -------- WIRELESS TELECOMMUNICATION SERVICES--0.2% Sprint Nextel Corp. 6.000% due 12/1/16 145 139 - ---------------------------------------------------------------------------- TOTAL DOMESTIC CORPORATE BONDS (IDENTIFIED COST $22,786) 22,620 - ---------------------------------------------------------------------------- NON-AGENCY MORTGAGE-BACKED SECURITIES--10.1% Banc of America Commercial Mortgage, Inc. 00-1, A1A 7.109% due 11/15/31 87 87 Banc of America Funding Corp. 07-E, 6A1 6.203% due 7/1/47(c) 685 687 Banc of America Funding Corp. 07-E, 9A1 6.310% due 8/25/47(c) 1,370 1,372 PAR VALUE VALUE (000) (000) -------- -------- Citigroup Mortgage Loan Trust, Inc. 04-NCM2, 2CB3 8.000% due 8/25/34 $ 78 $ 82 HSBC Asset Loan Obligation 07-AR2, 4A1 6.123% due 9/25/37(c) 905 892 Master Asset Securitization Trust Alternative Loans Trust 03-7, 5A1 6.250% due 11/25/33 188 190 Master Asset Securitization Trust Alternative Loans Trust 04-1, 3A1 7.000% due 1/25/34 130 133 Master Asset Securitization Trust Alternative Loans Trust 04-5, 6A1 7.000% due 6/25/34 90 92 Master Asset Securitization Trust Alternative Loans Trust 04-6, 6A1 6.500% due 7/25/34 558 564 Merrill Lynch Mortgage Trust 05-MCP1, A2 4.556% due 6/12/43 725 716 Morgan Stanley Mortgage Loan Trust 04-3, 3A 6.000% due 4/25/34 667 663 Residential Asset Mortgage Products, Inc. 04-SL3, A4 8.500% due 12/25/31 314 325 Washington Mutual Mortgage Pass-Through Certificates 07-HY3, 3A3 5.860% due 3/25/37(c) 2,944 2,943 - ---------------------------------------------------------------------------- TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $8,766) 8,746 - ---------------------------------------------------------------------------- FOREIGN CORPORATE BONDS(d)--7.0% CANADA--1.7% Canadian Natural Resources Ltd. 6.500% due 2/15/37 310 309 CHC Helicopter Corp. 7.375% due 5/1/14 60 57 Husky Energy, Inc. 6.200% due 9/15/17 275 277 Norampac Industries, Inc. 6.750% due 6/1/13 85 82 Russel Metals, Inc. 6.375% due 3/1/14 125 118 Suncor Energy, Inc. 6.500% due 6/15/38 400 409 Trans-Canada Pipelines Ltd. 6.350% due 5/15/49(c) 105 101 Xstrata Finance Ltd. 144A 5.800% due 11/15/16(b) 160 159 -------- 1,512 -------- CHILE--0.2% Celulosa Arauco y Constitucion S.A. 5.625% due 4/20/15 235 228 -------- See Notes to Financial Statements 50 PHOENIX BOND FUND PAR VALUE VALUE (000) (000) -------- -------- CHINA--0.1% NXP BV/NXP Funding LLC 7.875% due 10/15/14 $ 20 $ 19 9.500% due 10/15/15 50 47 -------- 66 -------- ITALY--0.2% Telecom Italia Capital S.p.A. 5.250% due 10/1/15 155 147 -------- JAPAN--0.7% MUFG Capital Finance 1 Ltd. 6.346% due 7/25/36(c) 290 276 Resona Bank Ltd. 144A 5.850% due 9/29/49(b)(c) 345 324 -------- 600 -------- LUXEMBOURG--0.3% Tyco Electronic Group SA 144A 6.000% due 10/1/12(b) 285 289 -------- NETHERLANDS--0.6% ING Groep N.V. 5.775% due 12/8/49(c) 535 506 -------- SINGAPORE--0.1% Avago Technologies Finance Ltd. 10.125% due 12/1/13 55 59 -------- SPAIN--1.0% Santander Issuances S.A. 144A 5.911% due 6/20/16(b) 410 416 Telefonica Emisiones S.A. 5.984% due 6/20/11 435 443 -------- 859 -------- SWITZERLAND--0.3% Credit Suisse Guernsey Ltd. 5.860% due 11/15/49(c) 275 260 -------- UNITED KINGDOM--0.9% HBOS plc 144A 6.657% due 11/21/49(b)(c) 400 363 Ineos Group Holdings plc 144A 8.500% due 2/15/16(b) 60 57 Royal Bank of Scotland 144A 6.990% due 10/29/49(b)(c) 335 342 -------- 762 -------- PAR VALUE VALUE (000) (000) -------- -------- UNITED STATES--0.9% Shell International Finance BV 5.625% due 6/27/11 $ 190 $ 195 Stratos Global Corp. 9.875% due 2/15/13 75 79 Teva Pharmaceutical Finance LLC 6.150% due 2/1/36 190 181 WEA Finance LLC/WCI Finance LLC 144A 5.700% due 10/1/16(b) 375 363 -------- 818 - ---------------------------------------------------------------------------- TOTAL FOREIGN CORPORATE BONDS (IDENTIFIED COST $6,226) 6,106 - ---------------------------------------------------------------------------- DOMESTIC CONVERTIBLE PREFERRED STOCKS--0.6% SHARES -------- DIVERSIFIED BANKS--0.3% Bank of America Corp. Cv. Pfd. 6.6% 10,000 252 -------- THRIFTS & MORTGAGE FINANCE--0.3% Freddie Mac Cv. Pfd. 6.6% 10,400 261 - ---------------------------------------------------------------------------- TOTAL DOMESTIC CONVERTIBLE PREFERRED STOCKS (IDENTIFIED COST $510) 513 - ---------------------------------------------------------------------------- TOTAL LONG-TERM INVESTMENTS--97.5% (IDENTIFIED COST $85,050) 84,821 - ---------------------------------------------------------------------------- SHORT-TERM INVESTMENTS--0.9% PAR VALUE (000) -------- FEDERAL AGENCY SECURITIES(e)--0.9% FHLB 4.051% due 10/1/07 $ 800 800 - ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $800) 800 - ---------------------------------------------------------------------------- TOTAL INVESTMENTS--98.4% (IDENTIFIED COST $85,850) 85,621(a) Other assets and liabilities, net--1.6% 1,328 -------- NET ASSETS--100.0% $ 86,949 ======== (a) Federal Income Tax Information (reported in 000's): Net unrealized depreciation of investment securities is comprised of gross appreciation of $670 and gross depreciation of $943 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $85,894. (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 September 30, 2007, these securities amounted to a value of $3,437 (reported in 000's) or 4% of net assets. (c) Variable or step coupon security; interest rate shown reflects the rate currently in effect. (d) A security is considered to be foreign if the security is issued in a foreign country. The country of risk, noted in the header, is determined based on criteria described in Note 2G, "Foreign security country determination" in the Notes to Financial Statements. (e) The rate shown is the discount rate. See Notes to Financial Statements 51 PHOENIX CA TAX-EXEMPT BOND FUND SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 PAR VALUE VALUE (000) (000) -------- -------- MUNICIPAL TAX-EXEMPT BONDS(d)--98.6% DEVELOPMENT REVENUE--6.1% Hercules Redevelopment Agency Tax-Allocation (AMBAC Insured) 5.000% due 8/1/29 $ 500 $ 515 Los Angeles Community Redevelopment Agency, Series A (AMBAC/FHA Insured) 6.550% due 1/1/27 100 100 Ontario Redevelopment Financing Authority, Project No. 1 (MBIA Insured) 6.900% due 8/1/10 70 76 5.250% due 8/1/13 500 535 Riverside County Redevelopment Agency, Jurup Valley Project Area Tax-Allocation (AMBAC Insured) 5.250% due 10/1/17 250 271 San Diego Redevelopment Agency, Center City Series A (AMBAC Insured) 4.750% due 9/1/30 500 504 San Diego Redevelopment Agency, Center City Series B (AMBAC Insured) 5.350% due 9/1/24 1,000 1,046 Santa Clara Redevelopment Agency Tax Allocation (MBIA Insured) 5.000% due 6/1/22 1,000 1,040 -------- 4,087 -------- EDUCATION REVENUE--3.2% North City West School Facilities Financing Authority, Series B (AMBAC Insured) 5.250% due 9/1/19 1,000 1,100 Sweetwater Unified High School District, Public Financing Authority, Series A (FSA Insured) 5.000% due 9/1/29 1,000 1,034 -------- 2,134 -------- GENERAL OBLIGATION--16.9% Antelope Valley Union High School District, Series A (MBIA Insured) 5.000% due 2/1/27 1,000 1,036 Brea & Olinda Unified School District, Series A (FGIC Insured) 6.000% due 8/1/15 150 173 Butte-Glenn Community College District, Series A (MBIA Insured) 5.500% due 8/1/19 1,000 1,083 PAR VALUE VALUE (000) (000) -------- -------- GENERAL OBLIGATION--CONTINUED California State 6.250% due 4/1/08 $ 825 $ 837 5.250% due 6/1/16 65 65 5.000% due 2/1/20 750 782 California State Veterans Bonds, Series BG 5.150% due 12/1/14 895 914 California State Veterans Bonds, Series CC 4.500% due 12/1/37 330 311 Desert Community College District (MBIA Insured) 5.000% due 8/1/18 990 1,059 Gilroy Unified School District (FGIC Insured) 5.000% due 8/1/27 500 518 Grossmont-Cuyamaca Community College, District Election of 2002, Series A (MBIA Insured) 5.000% due 8/1/19 250 263 Los Angeles Unified School District (MBIA Insured) 4.500% due 1/1/28 500 495 Metropolitan Water District Southern California, Series A 5.250% due 3/1/11 180 183 Santa Ana Unified School District (FGIC Insured) 5.700% due 8/1/22 400 423 Santa Clara Unified School District (FGIC Insured) 5.500% due 7/1/20 1,000 1,053 Walnut Valley Unified School District, Series A (MBIA Insured) 0% due 8/1/19 3,095 1,548 Wiseburn School District, Series A (MBIA Insured) 5.000% due 8/1/17 580 624 -------- 11,367 -------- GENERAL REVENUE--16.9% Anaheim Public Financing Authority, Series C (FSA Insured) 6.000% due 9/1/16 1,600 1,843 Beverly Hills Public Financing Authority 4.500% due 6/1/28 500 488 California State Public Works Board, Department of Health Services, Richmond Lab Series B (XLCA Insured) 5.000% due 11/1/17 460 493 California State Public Works Board, Highway Patrol Series C 5.250% due 11/1/20 500 521 PAR VALUE VALUE (000) (000) -------- -------- GENERAL REVENUE--CONTINUED Fontana Public Financing Authority Tax Allocation (AMBAC Insured) 5.000% due 10/1/29 $ 1,000 $ 1,037 Golden State Tobacco Securitization Corp. Series A-1 5.125% due 6/1/47 1,500 1,291 Los Angeles County Public Works Financing Authority, Series A (FSA Insured) 5.500% due 10/1/18 450 488 Pomona Certificates of Participation (AMBAC Insured) 5.500% due 6/1/28 1,365 1,482 San Diego County Certificates of Participation (AMBAC Insured) 5.250% due 11/1/15 960 1,019 San Jose Financing Authority, Series F (MBIA Insured)5.000% due 9/1/15 1,000 1,053 South Bay Regional Public Communications Authority (ACA Insured) 4.750% due 1/1/31 635 572 South Coast Air Quality Management Corp. (AMBAC Insured)6.000% due 8/1/11 1,000 1,079 -------- 11,366 -------- HIGHER EDUCATION REVENUE--3.1% California Educational Facilities Authority, Chapman University (Connie Lee Insured) 5.375% due 10/1/16 60 61 California State Public Works Board, University of California Series D 5.000% due 5/1/30 1,000 1,026 University of California Series B 4.750% due 5/15/38 500 500 University of California Series G (FGIC Insured) 4.750% due 5/15/35 525 526 -------- 2,113 -------- MEDICAL REVENUE--4.9% California Health Facilities Financing Authority, Cedars-Sinai Medical Center 5.000% due 11/15/34 500 500 California Health Facilities Financing Authority, Stanford Hospital and Clinics Series A 5.000% due 11/15/14 250 262 See Notes to Financial Statements 52 PHOENIX CA TAX-EXEMPT BOND FUND PAR VALUE VALUE (000) (000) -------- -------- MEDICAL REVENUE--CONTINUED California Health Facilities Financing Authority, Sutter Health Series A 5.000% due 11/15/42 $ 870 $ 876 California State Public Works Board, Department of Mental Health Series A 5.500% due 6/1/16 1,000 1,094 San Joaquin General Hospital Project, Certificates of Participation (MBIA Insured) 5.250% due 9/1/12 100 104 Santa Clara County Financing Authority, Series A (AMBAC Insured) 7.750% due 11/15/11 400 462 -------- 3,298 -------- MUNICIPAL UTILITY DISTRICT REVENUE--2.0% Sacramento Municipal Utilities District, Financing Authority (MBIA Insured) 4.750% due 7/1/26 500 508 Sacramento Municipal Utility District, Series O (MBIA Insured) 5.250% due 8/15/15 310 329 Sacramento Municipal Utility District, Series P (FSA Insured) 5.250% due 8/15/17 500 529 -------- 1,366 -------- NATURAL GAS REVENUE--0.7% Roseville Natural Gas Financing Authority 5.000% due 2/15/24 500 502 -------- POWER REVENUE--5.4% Los Angeles Water and Power Series A -A-2, (MBIA insured) 5.000% due 7/1/19 760 799 Northern California Power Agency, Hydroelectric Project Series A (MBIA Insured) 5.000% due 7/1/15 1,000 1,019 5.200% due 7/1/32 1,120 1,141 Southern California Public Power Authority, Series B (FSA Insured) 5.000% due 7/1/12 635 676 -------- 3,635 -------- PRE-REFUNDED--27.5% Contra Costa County Home Mortgage (GNMA Collateralized) 7.500% due 5/1/14 (b) 500 606 Covina Community Redevelopment Agency 8.800% due 1/1/08(b) 60 61 PAR VALUE VALUE (000) (000) -------- -------- PRE-REFUNDED--CONTINUED Cypress Single Family Residential Mortgage, Series B (Private Mortgage Insurance) 7.250% due 1/1/12 (b) $ 200 $ 229 Duarte Redevelopment Agency Single Family Mortgage, Series A (FNMA Collateralized) 6.875% due 11/1/11 (b) 300 338 Huntington Park Redevelopment Agency Single Family Residential Mortgage, Series A (FHA/VA/PRIV MTGS Insured) 8.000% due 12/1/19 (b) 2,400 3,300 Los Angeles Harbor Department 7.600% due 10/1/18(b) 945 1,127 Lucia Mar Unified School District, Election of 2004 Series A, Prerefunded 8/1/14 @ 100 (FGIC Insured) 5.000% due 8/1/27 1,000 1,087 M-S-R Public Power Agency San Juan Project Series D (MBIA Insured) 6.750% due 7/1/20 (b) 1,835 2,137 Modesto Wastewater Treatment Facility (MBIA Insured) 6.000% due 11/1/12 (b) 735 820 Northern California Power Agency Prerefunded 7/1/21 @ 100 (AMBAC Insured) 7.500% due 7/1/23 195 256 Pomona Unified School District Series C (MBIA Insured) 5.600% due 8/1/12 (b) 1,500 1,640 Riverside County Single Family Issue B (GNMA Collateralized) 8.625% due 5/1/16 (b) 1,000 1,336 Riverside County Single Family Series A (GNMA Collateralized)7.800% due 5/1/21 (b) 4,000 5,399 Stockton Housing Facility, O'Connor Woods Project Series A, Prerefunded 9/20/17 @ 100 (GNMA Collateralized)5.600% due 3/20/28 200 202 -------- 18,538 -------- TRANSPORTATION REVENUE--2.9% Alameda Corridor Transportation Authority, Series A (MBIA Insured) 5.125% due 10/1/17 125 129 PAR VALUE VALUE (000) (000) -------- -------- TRANSPORTATION REVENUE--CONTINUED Alameda Corridor Transportation Authority, Series A (MBIA Insured) 5.125% due 10/1/16 $ 150 $ 156 Los Angeles Harbor Department Revenue (MBIA Insured) 4.500% due 8/1/27 500 478 Port of Oakland Series I (MBIA Insured) 5.600% due 11/1/19 1,000 1,021 San Francisco Bay Area Rapid Transit District 5.250% due 7/1/17 180 184 -------- 1,968 -------- WATER & SEWER REVENUE--9.0% California Statewide Communities Development Authority, Anheuser-Bush Project 4.800% due 9/1/46 1,000 915 Delta Diablo Sanitation District, Certificates of Participation (MBIA Insured) 0% due 12/1/16 1,070 740 El Dorado Irrigation District, Certificates of Participation Series A (FGIC Insured) 5.250% due 3/1/16 365 392 Metropolitan Water District of Southern California Waterworks Series B-3 (MBIA Insured) 5.000% due 10/1/29 1,000 1,041 Modesto Wastewater, Series A (FSA Insured) 5.000% due 11/1/19 245 260 Mountain View Shoreline Regional Park Community, Series A (MBIA Insured) 5.500% due 8/1/21 1,000 1,011 Redlands Financing Authority, Series A (FSA Insured) 5.000% due 9/1/17 1,000 1,044 Sweetwater Water Authority (AMBAC Insured) 5.250% due 4/1/10 125 128 Westlands Water District, Certificates of Participation (MBIA Insured) 5.250% due 9/1/14 500 541 -------- 6,072 - ---------------------------------------------------------------------------- TOTAL MUNICIPAL TAX-EXEMPT BONDS (IDENTIFIED COST $64,214) 66,446 - ---------------------------------------------------------------------------- TOTAL LONG-TERM INVESTMENTS--98.6% (IDENTIFIED COST $64,214) 66,446 - ---------------------------------------------------------------------------- See Notes to Financial Statements 53 PHOENIX CA TAX-EXEMPT BOND FUND PAR VALUE VALUE (000) (000) -------- -------- SHORT-TERM INVESTMENTS--0.2% COMMERCIAL PAPER(c)--0.2% UBS Finance Delaware LLC 4.750% due 10/1/07 $ 135 $ 135 - ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $135) 135 - ---------------------------------------------------------------------------- TOTAL INVESTMENTS--98.8% (IDENTIFIED COST $64,349) 66,581(a) Other assets and liabilities, net--1.2% 790 -------- NET ASSETS--100.0% $ 67,371 ======== (a) Federal Income Tax Information (reported in 000's): Net unrealized appreciation of investment securities is comprised of gross appreciation of $2,737 and gross depreciation of $505 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $64,349. (b) Escrowed to maturity. (c) The rate shown is the discount rate. (d) At September 30, 2007, the concentration of the Fund's investments by state or territory determined as a percentage of net assets is as follows: California 99.8%. At September 30, 2007, 80% of the securities in the portfolio are backed by insurance of financial institutions and financial guaranty assurance agencies. Insurers with a concentration greater than 10% of net assets are as follows: MBIA 33%, AMBAC 13% and GNMA 11%. For definitions see the glossary starting on page 2. See Notes to Financial Statements 54 PHOENIX CORE BOND FUND PAR VALUE VALUE (000) (000) -------- -------- U.S. GOVERNMENT SECURITIES(g)--1.7% U.S. TREASURY BONDS--1.5% U.S. Treasury Bond 4.750% due 2/15/37(g) $ 970 $ 957 -------- U.S. TREASURY NOTES--0.2% U.S. Treasury Note 4.875% due 8/15/16(g) 150 153 - ---------------------------------------------------------------------------- TOTAL U.S. GOVERNMENT SECURITIES (IDENTIFIED COST $1,089) 1,110 - ---------------------------------------------------------------------------- AGENCY MORTGAGE-BACKED SECURITIES--25.4% FHLMC 6.000% due 10/1/34 653 655 FNMA 6.000% due 10/1/14 452 458 6.500% due 6/1/16 317 325 6.000% due 7/1/17 131 133 5.500% due 9/1/17 342 342 5.000% due 4/1/20 580 570 4.500% due 5/1/20 836 805 5.000% due 8/1/21 326 319 6.000% due 5/1/29 279 281 6.500% due 7/1/29 411 422 6.500% due 5/1/30 10 10 7.500% due 3/1/31 178 186 7.000% due 7/1/31 128 133 7.000% due 9/1/31 210 219 6.500% due 2/1/32 423 433 6.500% due 3/1/32 212 217 5.500% due 4/1/33 264 259 5.500% due 6/1/33 1,531 1,504 5.500% due 7/1/33 3,314 3,256 5.000% due 9/1/33 376 360 5.000% due 7/1/35 308 294 5.000% due 11/1/35 360 344 5.500% due 12/1/35 336 329 6.000% due 6/1/36 448 449 6.500% due 8/1/36 618 629 6.000% due 9/1/36 642 643 FNMA 04-W6, 1A4 5.500% due 7/25/34 272 272 GNMA 8.500% due 11/15/22 1 1 6.500% due 9/15/28 241 247 7.500% due 9/15/29 165 173 5.000% due 7/15/33 2,107 2,041 6.000% due 6/15/34 443 446 - ---------------------------------------------------------------------------- TOTAL AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $16,801) 16,755 - ---------------------------------------------------------------------------- AGENCY NON-MORTGAGE-BACKED SECURITIES--0.9% FHLB 6.000% due 6/29/22 200 202 FHLMC(g) 5.200% due 3/5/19 200 197 5.300% due 5/12/20 200 196 - ---------------------------------------------------------------------------- TOTAL AGENCY NON-MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $589) 595 - ---------------------------------------------------------------------------- PAR VALUE VALUE (000) (000) -------- -------- MUNICIPAL BONDS--6.5% CALIFORNIA--2.7% Alameda Corridor Transportation Authority Taxable Series C (MBIA Insured) 6.500% due 10/1/19 $ 1,000 $ 1,065 Azusa Public Financing Authority Taxable (FSA) 5.000% due 7/1/39 705 731 -------- 1,796 -------- FLORIDA--1.2% Miami-Dade County Educational Facilities Authority Taxable Series C 5.480% due 4/1/16 110 108 Orange County Tourist Development Taxable (MBIA) 5.000% due 10/1/17 640 698 -------- 806 -------- MICHIGAN--0.2% Flat Rock Finance & Development Authority Taxable Series A 6.750% due 10/1/16 95 99 -------- PENNSYLVANIA--0.8% City of Pittsburgh Pension Obligation Taxable Series C (FGIC Insured) 6.500% due 3/1/17 340 361 City of Reading (FSA Insured) 5.100% due 11/15/15 190 187 -------- 548 -------- RHODE ISLAND--1.6% Woonsocket Pension Funding Taxable (FSA Insured) 5.660% due 7/15/13 1,000 1,019 - ---------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS (IDENTIFIED COST $4,329) 4,268 - ---------------------------------------------------------------------------- ASSET-BACKED SECURITIES--8.9% AmeriCredit Automobile Receivables Trust 05-AX, A4 3.930% due 10/6/11 2,000 1,977 AmeriCredit Automobile Receivables Trust 06-BG, A3 5.210% due 10/6/11 180 180 Capital One Auto Finance Trust 07-B, A3A 5.030% due 4/15/12 500 499 Carmax Auto Owner Trust 07-2, A3 5.230% due 12/15/11 442 443 Ford Credit Auto Owner Trust 07-A, A3B 5.783% due 8/15/11(c) 295 292 PAR VALUE VALUE (000) (000) -------- -------- Greenwich Structured ARM Products 05-5A, N2 144A 9.001% due 9/27/45(b) (c) $ 315 $ 315 Nomura Asset Acceptance Corp. 07-1, 1A2 5.669% due 3/25/47(c) 515 513 Paine Webber Mortgage Acceptance Corp. 99-C1, D 7.150% due 6/15/32(c) 190 197 Renaissance Home Equity Loan Trust 06-2, AF4 6.115% due 8/25/36(c) 730 726 Residential Funding Mortgage Securities II, Inc. 06-HSA1, A2 5.190% due 2/25/36(c) 400 388 Saxon Asset Securities Trust 05-3, A2C 5.600% due 11/25/35(c) 382 380 - -------------------------------------------------------------------------------- TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $5,951) 5,910 - -------------------------------------------------------------------------------- DOMESTIC CORPORATE BONDS--19.1% AIRLINES--1.2% American Airlines, Inc. 99-1 7.024% due 10/15/09 365 371 Continental Airlines, Inc. 98-1A 6.648% due 3/15/19 398 402 -------- 773 -------- APPLICATION SOFTWARE--0.1% Intuit, Inc. 5.750% due 3/15/17 45 43 -------- ASSET MANAGEMENT & CUSTODY BANKS--0.7% Allied Capital Corp. 6.000% due 4/1/12 100 100 Janus Capital Group, Inc. 6.250% due 6/15/12 125 127 Nuveen Investments, Inc. 5.000% due 9/15/10 230 217 -------- 444 -------- AUTOMOBILE MANUFACTURERS--0.1% Daimler Finance NA LLC 6.500% due 11/15/13 95 99 -------- BROADCASTING & CABLE TV--0.5% Comcast Corp. 5.300% due 1/15/14 105 102 5.875% due 2/15/18 130 128 Time Warner Cable, Inc. 144A 5.850% due 5/1/17(b) 70 68 -------- 298 -------- BUILDING PRODUCTS--0.1% Masco Corp. 5.850% due 3/15/17 45 43 Owens Corning, Inc. 6.500% due 12/1/16 35 34 -------- 77 -------- See Notes to Financial Statements 54 PHOENIX CORE BOND FUND PAR VALUE VALUE (000) (000) -------- -------- CASINOS & GAMING--0.1% Harrah's Operating Co., Inc. 5.625% due 6/1/15 $ 115 $ 92 -------- COMMUNICATIONS EQUIPMENT--0.2% Cisco Systems, Inc. 5.500% due 2/22/16 100 99 -------- CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--0.1% Caterpillar Financial Services Corp. 5.850% due 9/1/17 65 66 -------- CONSTRUCTION MATERIALS--0.2% CRH America, Inc. (Ireland) 6.000% due 9/30/16(d) 135 131 -------- CONSUMER FINANCE--2.4% Capital One Financial Corp. 5.250% due 2/21/17 70 64 General Electric Capital Corp. 6.750% due 3/15/32 500 551 GMAC LLC 6.875% due 8/28/12 180 169 HSBC Finance Corp. 8.000% due 7/15/10 300 322 Residential Capital LLC 6.000% due 2/22/11 80 65 SLM Corp. 3.967% due 2/1/10(c) 500 437 -------- 1,608 -------- DATA PROCESSING & OUTSOURCED SERVICES--0.2% Broadridge Financial Solutions, Inc. 6.125% due 6/1/17 110 104 -------- DIVERSIFIED BANKS--0.7% Bank of America Corp. 5.490% due 3/15/19 300 288 Wachovia Corp. 4.875% due 2/15/14 200 192 -------- 480 -------- DIVERSIFIED CAPITAL MARKETS--0.2% Credit Suisse USA, Inc. 5.850% due 8/16/16 135 136 -------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--0.5% Equifax, Inc. 6.300% due 7/1/17 130 131 International Lease Finance Corp. 4.750% due 1/13/12 225 218 -------- 349 -------- DRUG RETAIL--0.1% CVS Caremark Corp. 5.750% due 6/1/17 70 68 -------- ELECTRIC UTILITIES--0.9% Florida Power Corp. Series A 5.800% due 9/15/17 135 136 Great River Energy 144A 5.829% due 7/1/17(b) 140 145 PAR VALUE VALUE (000) (000) -------- -------- ELECTRIC UTILITIES--CONTINUED PPL Capital Funding Trust I Series A 4.330% due 3/1/09 $ 190 $ 188 Southern Power Co. Series D 4.875% due 7/15/15 165 154 -------- 623 -------- FOOD RETAIL--0.1% Kroger Co. (The) 6.800% due 12/15/18 70 73 -------- GENERAL MERCHANDISE STORES--0.2% Target Corp. 5.375% due 5/1/17 140 134 -------- HEALTH CARE DISTRIBUTORS--0.2% Cardinal Health, Inc. 144A 6.000% due 6/15/17(b) 125 125 -------- HEALTH CARE SERVICES--0.1% Quest Diagnostics, Inc. 6.400% due 7/1/17 65 66 -------- HOME FURNISHINGS--0.2% Mohawk Industries, Inc. 6.125% due 1/15/16 160 159 -------- HOTELS, RESORTS & CRUISE LINES--0.2% Starwood Hotels & Resort Worldwide, Inc. 6.250% due 2/15/13 110 110 -------- HOUSEHOLD APPLIANCES--0.2% Black & Decker Corp. (The) 5.750% due 11/15/16 115 112 -------- HOUSEHOLD PRODUCTS--0.4% Kimberly-Clark Corp. 6.125% due 8/1/17 165 170 Procter & Gamble Co. 5.550% due 3/5/37 130 124 -------- 294 -------- INTEGRATED OIL & GAS--0.2% ConocoPhillips Canada Funding Co. 5.625% due 10/15/16 110 110 -------- INTEGRATED TELECOMMUNICATION SERVICES--1.0% AT&T, Inc. 5.875% due 2/1/12 130 133 5.625% due 6/15/16 130 129 Embarq Corp. 6.738% due 6/1/13 65 68 7.082% due 6/1/16 70 72 Qwest Corp. 7.875% due 9/1/11 65 68 Verizon Communications, Inc. 4.900% due 9/15/15 130 124 5.500% due 4/1/17 70 69 -------- 663 -------- INVESTMENT BANKING & BROKERAGE--1.4% Goldman Sachs Group, Inc. (The) 5.125% due 1/15/15 350 336 PAR VALUE VALUE (000) (000) -------- -------- INVESTMENT BANKING & BROKERAGE--CONTINUED Lehman Brothers Holdings, Inc. 6.000% due 7/19/12 $ 55 $ 56 5.750% due 1/3/17 145 139 Merrill Lynch & Co., Inc. 6.110% due 1/29/37 150 141 Morgan Stanley 5.375% due 10/15/15 250 240 -------- 912 -------- LEISURE PRODUCTS--0.2% Hasbro, Inc. 6.300% due 9/15/17 135 134 -------- MANAGED HEALTH CARE--0.2% WellPoint, Inc. 5.250% due 1/15/16 125 120 -------- MORTGAGE REITS--0.3% iStar Financial, Inc. 6.050% due 4/15/15 200 185 -------- MOVIES & ENTERTAINMENT--0.2% Time Warner, Inc. 5.875% due 11/15/16 130 127 -------- MULTI-LINE INSURANCE--0.1% Assurant, Inc. 5.625% due 2/15/14 70 68 -------- MULTI-UTILITIES--0.3% Dominion Resources, Inc. 5.000% due 3/15/13 90 87 NiSource Finance Corp. 6.400% due 3/15/18 130 131 -------- 218 -------- OFFICE ELECTRONICS--0.3% Xerox Corp. 6.750% due 2/1/17 170 174 -------- OIL & GAS EXPLORATION & PRODUCTION--0.4% Anadarko Petroleum Corp. 5.950% due 9/15/16 70 69 Apache Corp. 5.625% due 1/15/17 70 69 XTO Energy, Inc. 6.250% due 8/1/17 105 107 -------- 245 -------- OIL & GAS REFINING & MARKETING--0.2% Valero Energy Corp. 4.750% due 6/15/13 140 134 -------- OIL & GAS STORAGE & TRANSPORTATION--0.8% Buckeye Partners LP 5.125% due 7/1/17 200 185 Energy Transfer Partners LP 5.950% due 2/1/15 135 132 Enterprise Products Partners LP 6.300% due 9/15/17 100 100 Kinder Morgan Energy Partners LP 6.000% due 2/1/17 135 133 -------- 550 -------- See Notes to Financial Statements 56 PHOENIX CORE BOND FUND PAR VALUE VALUE (000) (000) -------- -------- OTHER DIVERSIFIED FINANCIAL SERVICES--0.6% Citigroup, Inc. 5.500% due 8/27/12 $ 90 $ 91 5.500% due 2/15/17 95 94 JPMorgan Chase & Co. 5.125% due 9/15/14 155 151 5.250% due 5/1/15 85 82 -------- 418 -------- PROPERTY & CASUALTY INSURANCE--0.1% Travelers Cos., Inc. 5.750% due 12/15/17 100 99 -------- REGIONAL BANKS--0.3% Zions Bancorp. 5.500% due 11/16/15 200 192 -------- RESIDENTIAL REITS--0.2% UDR, Inc. 5.250% due 1/15/15 150 144 -------- RESTAURANTS--0.4% Starbucks Corp. 6.250% due 8/15/17 135 136 Yum! Brands, Inc. 6.250% due 4/15/16 140 140 -------- 276 -------- RETAIL REITS--0.3% Tanger Factory Outlet Centers 6.150% due 11/15/15 190 186 -------- SPECIALIZED FINANCE--0.3% CIT Group, Inc. 5.125% due 9/30/14 200 182 -------- SPECIALIZED REITS--0.6% Health Care REIT, Inc. 5.875% due 5/15/15 225 215 Realty Income Corp. 6.750% due 8/15/19 110 110 Simon Property Group LP 5.100% due 6/15/15 70 66 -------- 391 -------- STEEL--0.2% Commercial Metals Co. 6.500% due 7/15/17 100 104 -------- THRIFTS & MORTGAGE FINANCE--0.3% Countrywide Financial Corp. 6.250% due 5/15/16 65 59 Washington Mutual, Inc. 4.625% due 4/1/14 155 141 -------- 200 -------- TOBACCO--0.1% Reynolds American, Inc. 6.750% due 6/15/17 95 97 -------- PAR VALUE VALUE (000) (000) -------- -------- WIRELESS TELECOMMUNICATION SERVICES--0.2% Nextel Communications, Inc. Series D 7.375% due 8/1/15 $ 70 $ 71 Sprint Nextel Corp. 6.000% due 12/1/16 65 63 -------- 134 - ---------------------------------------------------------------------------- TOTAL DOMESTIC CORPORATE BONDS (IDENTIFIED COST $12,820) 12,626 - ---------------------------------------------------------------------------- NON-AGENCY MORTGAGE-BACKED SECURITIES--31.0% Banc of America Alternative Loan Trust 06-9, A1 6.000% due 1/25/37 627 627 Bear Stearns Adjustable Rate Mortgage Trust 05-12, 13A1 5.452% due 2/25/36(c) 172 170 Bear Stearns Commercial Mortgage Securities 06-PW12, A4 5.895% due 9/11/38(c) 370 377 Citigroup Mortgage Loan Trust, Inc. 05-5, 2A3 5.000% due 7/25/35 84 82 Citigroup/Deutsche Bank Commercial Mortgage Trust 05-CD1, AM 5.400% due 7/15/44(c) 650 633 Citigroup/Deutsche Bank Commercial Mortgage Trust 06-CD2, A4 5.545% due 1/15/46(c) 655 650 Citigroup/Deutsche Bank Commercial Mortgage Trust 07-CD4, A4 5.322% due 12/11/49 700 685 Countrywide Home Loan Mortgage Pass-Through Trust 04-13, 1A1 5.500% due 8/25/34 188 188 Countrywide Home Loan Mortgage Pass-Through Trust 07-1, A2 6.000% due 3/25/37 669 667 Credit Suisse Mortgage Capital Certificates 06-C1, A4 5.609% due 2/15/39(c) 935 938 Crown Castle Towers LLC 05-1A, AFX 144A 4.643% due 6/15/35(b) 450 442 First Horizon Asset Securities, Inc. 03-2, 1A12 5.750% due 4/25/33 445 433 First Union-Lehman Brothers-Bank of America 98-C2, A2 6.560% due 11/18/35 877 878 GE Capital Commercial Mortgage Corp. 04-C3, A4 5.189% due 7/10/39(c) 1,000 984 GMAC Mortgage Corp. Loan Trust 05-AR2, 2A 4.866% due 5/25/35(c) 284 288 Greenwich Capital Commercial Funding Corp. 04-GG1, A7 5.317% due 6/10/36(c) 1,000 993 PAR VALUE VALUE (000) (000) -------- -------- GSAMP Net Interest Margin Trust 05-NC1 144A 5.000% due 2/25/35(b)(h) $ 1 $ --(i) JPMorgan Mortgage Trust 05-S3, 2A2 5.500% due 1/25/21 317 314 Lehman Brothers-UBS Commercial Mortgage Trust 04-C7, A6 4.786% due 10/15/29(c) 1,000 962 Lehman Brothers-UBS Commercial Mortgage Trust 06-C6, A4 5.372% due 9/15/39 710 702 Lehman Brothers-UBS Commercial Mortgage Trust 07-C2, A2 5.303% due 2/15/40 225 225 Lehman Brothers Commercial Conduit Mortgage Trust 07-C3, A4 6.134% due 7/15/44(c) 170 174 Lehman Brothers-UBS Commercial Mortgage Trust 07-C6, A2 5.845% due 7/17/40 360 365 MASTR Asset Securitization Trust 03-10, 3A1 5.500% due 11/25/33 321 311 MASTR Resecuritization Trust 05-4CI, N2 144A 8.129% due 4/26/45(b) (c)(h) 170 87 Merrill Lynch Mortgage Trust 04-KEY2, A4 4.864% due 8/12/39(c) 1,000 964 Merrill Lynch Mortgage Trust 06-C1, AM 5.843% due 5/12/39(c) 320 320 Merrill Lynch/Countrywide Commercial Mortgage Trust 06-3, A4 5.414% due 7/12/46(c) 445 441 Morgan Stanley Capital I 06-T23, A4 5.983% due 8/12/41(c) 360 370 Morgan Stanley Capital I 07-IQ14, A2 5.610% due 4/15/49 350 353 Morgan Stanley Mortgage Loan Trust 05-5AR, 4A1 5.528% due 9/25/35(c) 307 305 Prudential Securities Secured Financing Corp. 98-C1, C 6.742% due 5/15/10 750 757 Residential Accredit Loans, Inc. 06-QA1, A21 5.968% due 1/25/36(c) 596 603 Residential Funding Mortgage Securities I, Inc. 05-SA1, 2A 4.855% due 3/25/35(c) 311 311 SBA Commercial Mortgage- Backed Securities Trust 06-1A, B 144A 5.451% due 11/15/36(b) 140 138 Structured Asset Securities Corp. 03-32, 1A1 5.208% due 11/25/33(c) 470 452 See Notes to Financial Statements 57 PHOENIX CORE BOND FUND PAR VALUE VALUE (000) (000) -------- -------- Wachovia Mortgage Loan Trust LLC 06-A, B1 5.418% due 5/20/36(c) $ 259 $ 258 Washington Mutual Mortgage Pass-Through Certificates, Inc. 05-AR3, A2 4.636% due 3/25/35(c) 610 604 Wells Fargo Mortgage-Backed Securities Trust 04-BB, A1 4.557% due 1/25/35(c) 261 259 Wells Fargo Mortgage-Backed Securities Trust 05-14, 2A1 5.500% due 12/25/35 738 717 Wells Fargo Mortgage-Backed Securities Trust 05-5, 1A1 5.000% due 5/25/20 333 324 Wells Fargo Mortgage-Backed Securities Trust 05-AR16, 6A3 4.999% due 10/25/35(c) 593 589 Wells Fargo Mortgage-Backed Securities Trust 05-AR4, 2A1 4.525% due 4/25/35(c) 275 272 Wells Fargo Mortgage-Backed Securities Trust 05-AR4, 2A2 4.525% due 4/25/35(c) 230 228 - ---------------------------------------------------------------------------- TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $20,807) 20,440 - ---------------------------------------------------------------------------- FOREIGN GOVERNMENT SECURITIES--0.5% RUSSIA--0.5% Russian Federation RegS 7.500% due 3/31/30(c)(e) 303 340 - ---------------------------------------------------------------------------- TOTAL FOREIGN GOVERNMENT SECURITIES (IDENTIFIED COST $312) 340 - ---------------------------------------------------------------------------- FOREIGN CORPORATE BONDS(d)--3.9% ARUBA--0.1% UFJ Finance AEC 6.750% due 7/15/13 100 103 -------- AUSTRALIA--0.2% Westfield Capital Corp. Ltd./ Westfield Finance Authority 144A 5.125% due 11/15/14(b) 150 142 -------- PAR VALUE VALUE (000) (000) -------- -------- BRAZIL--0.2% Vale Overseas Ltd. 6.250% due 1/23/17 $ 130 $ 131 -------- CANADA--0.1% Xstrata Finance Ltd. 144A 5.800% due 11/15/16(b) 70 70 -------- CAYMAN ISLANDS--0.2% Petrobras International Finance Co. 6.125% due 10/6/16 135 136 -------- CHILE--0.4% Celulosa Arauco y Constitucion S.A. 5.625% due 4/20/15 140 136 Petropower I Funding Trust 144A 7.360% due 2/15/14(b) 123 123 -------- 259 -------- GERMANY--0.7% Deutsche Bank AG NY Series GS 4.079% due 3/22/12(c) 485 467 -------- MEXICO--0.3% Pemex Project Funding Master Trust 5.750% due 12/15/15 180 180 -------- NETHERLANDS--0.1% Deutsche Telekom International Finance BV 5.750% due 3/23/16 75 74 -------- QATAR--0.4% Ras Laffan Liquefied Natural Gas Co. Ltd. RegS 5.298% due 9/30/20(e) 250 239 -------- RUSSIA--0.6% AK Transneft OJSC (TransCapitalInvest Ltd.) 144A 5.670% due 3/5/14(b) 170 166 Gazprom OAO (Gaz Capital SA) 144A 6.212% due 11/22/16(b) 130 129 PAR VALUE VALUE (000) (000) -------- -------- RUSSIA--CONTINUED TNK-BP Finance SA RegS 6.125% due 3/20/12(e) $ 105 $ 101 -------- 396 -------- SINGAPORE--0.2% ICICI Bank Ltd. RegS 5.750% due 11/16/10(e) 105 106 -------- SPAIN--0.1% Telefonica Emisiones SAU 6.421% due 6/20/16 75 77 -------- UNITED KINGDOM--0.3% Diageo Capital plc 5.500% due 9/30/16 70 68 Vodafone Group plc 5.000% due 9/15/15 80 76 6.150% due 2/27/37 70 67 -------- 211 - ---------------------------------------------------------------------------- TOTAL FOREIGN CORPORATE BONDS (IDENTIFIED COST $2,614) 2,591 - ---------------------------------------------------------------------------- TOTAL LONG-TERM INVESTMENTS--97.9% (IDENTIFIED COST $65,312) 64,635 - ---------------------------------------------------------------------------- SHORT-TERM INVESTMENTS--3.9% COMMERCIAL PAPER(j)--1.6% Govco, Inc. 5.100% due 10/1/07 1,035 1,035 -------- SHARES --------- MONEY MARKET MUTUAL FUNDS--2.3% State Street Navigator Prime Plus (5.30% seven-day effective yield)(f) 1,520,266 1,520 - ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $2,555) 2,555 - ---------------------------------------------------------------------------- TOTAL INVESTMENTS--101.8% (IDENTIFIED COST $67,867) 67,190(a) Other assets and liabilities, net--(1.8)% (1,196) -------- NET ASSETS--100.0% $ 65,994 ======== (a) Federal Income Tax Information (reported in 000's): Net unrealized depreciation of investment securities is comprised of gross appreciation of $62 and gross depreciation of $1,150 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $68,278. (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 September 30, 2007, these securities amounted to a value of $1,950 (reported in 000's) or 2.9% of net assets. (c) Variable or step coupon security; interest rate shown reflects the rate currently in effect. (d) A security is considered to be foreign if the security is issued in a foreign country. The country of risk, noted in the header, is determined based on criteria described in Note 2G, "Foreign security country determination" in the Notes to Financial Statements. (e) Regulation S security. Security is offered and sold outside of the United States; therefore, it is exempt from registration with the SEC under rules 903 and 904 of the Securities Act of 1933. (f) Represents security purchased with cash collateral received for securities on loan. (g) All or a portion of security is on loan. (h) Illiquid and restricted security. At September 30, 2007, these securities amounted to a value of $87 (reported in 000's) or 0.1% of the net assets. For acquisition information see Note 7 "Illiquid and Restricted Securities" in the Notes to Financial Statements. (i) Amount is less than $1,000. (j) The rate shown is the discount rate. See Notes to Financial Statements 58 PHOENIX EMERGING MARKETS BOND FUND SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 PAR VALUE VALUE (000) (000) -------- -------- DOMESTIC CORPORATE BONDS--1.2% SPECIALIZED FINANCE--1.2% Interoceanica IV Finance Ltd. 144A 0% due 11/30/18(b) $ 750 $ 475 - ---------------------------------------------------------------------------- TOTAL DOMESTIC CORPORATE BONDS (IDENTIFIED COST $503) 475 - ---------------------------------------------------------------------------- FOREIGN GOVERNMENT SECURITIES--44.4% ARGENTINA--3.3% Province of Buenos Aires Series RegS 9.625% due 4/18/28(e) 500 430 Republic of Argentina 1.330% due 12/31/38(d) 200 82 Republic of Argentina PIK Interest Capitalization 8.280% due 12/31/33 882 803 Republic of Argentina Series PGDP 0% due 12/15/35(d) 97(f) 3 -------- 1,318 -------- BRAZIL--6.6% Federative Republic of Brazil 7.875% due 3/7/15 500 566 6.000% due 1/17/17 1,150 1,169 8.875% due 10/14/19 700 873 -------- 2,608 -------- COLOMBIA--3.3% Republic of Colombia 8.125% due 5/21/24 400 468 7.375% due 9/18/37 750 827 -------- 1,295 -------- COSTA RICA--0.9% Republic of Costa Rica RegS 6.548% due 3/20/14(e) 350 360 -------- DOMINICAN REPUBLIC--1.8% Dominican Republic 144A 8.625% due 4/20/27(b) 100 113 Dominican Republic RegS(e) 9.500% due 9/27/11 109 116 9.040% due 1/23/18 437 492 -------- 721 -------- ECUADOR--2.1% Republic of Ecuador 144A 9.375% due 12/15/15(b) 100 98 Republic of Ecuador RegS 12.000% due 11/15/12(e) 163 164 10.000% due 8/15/30(d) 650 588 -------- 850 -------- PAR VALUE VALUE (000) (000) -------- -------- EL SALVADOR--1.4% Republic of El Salvador 144A 7.625% due 9/21/34(b) $ 250 $ 282 Republic of El Salvador RegS 7.650% due 6/15/35(e) 250 282 -------- 564 -------- FIJI--0.5% Republic of Fiji 6.875% due 9/13/11 200 184 -------- GHANA--0.3% Republic of Ghana 144A 8.500% due 10/4/17(b) 100 100 -------- GUATEMALA--1.0% Republic of Guatemala RegS 9.250% due 8/1/13(e) 350 402 -------- MEXICO--3.4% Mexican Fixed Rate Bonds Series M 9.000% due 6/20/13 2,500(g) 242 United Mexican States Series B 6.750% due 9/27/34 1,000 1,087 -------- 1,329 -------- PANAMA--1.3% Republic of Panama 6.700% due 1/26/36 500 516 -------- PERU--2.0% Peru Enhanced Pass-Through Finance Ltd. 144A 0% due 5/31/18(b) 1,150 785 -------- PHILIPPINES--0.7% Republic of Philippines 8.250% due 1/15/14 250 281 -------- SERBIA--0.6% Republic of Serbia RegS 3.750% due 11/1/24(e) 250 235 -------- TURKEY--6.6% Republic of Turkey 11.000% due 1/14/13 1,000 1,215 8.000% due 2/14/34 400 435 6.875% due 3/17/36 1,000 959 -------- 2,609 -------- UKRAINE--1.8% Republic of Ukraine 144A 6.580% due 11/21/16(b) 400 405 Republic of Ukraine RegS 8.693% due 8/5/09(e) 300 316 -------- 721 -------- PAR VALUE VALUE (000) (000) -------- -------- VENEZUELA--4.6% Republic of Venezuela 10.750% due 9/19/13 $ 300 $ 332 5.750% due 2/26/16 750 636 9.250% due 9/15/27 400 415 Republic of Venezuela RegS 7.000% due 12/1/18(e) 500 446 -------- 1,829 -------- VIETNAM--2.2% Socialist Republic of Vietnam 6.313% due 3/12/16(d) 843 831 - ---------------------------------------------------------------------------- TOTAL FOREIGN GOVERNMENT SECURITIES (IDENTIFIED COST $17,307) 17,538 - ---------------------------------------------------------------------------- FOREIGN CORPORATE BONDS(c)--47.5% BAHAMAS--1.2% Ultrapetrol Ltd. 9.000% due 11/24/14 (Marine) 500 481 -------- BARBADOS--0.8% Sagicor Financial Ltd. RegS 7.500% due 5/12/16 (Multi-line Insurance)(e) 300 308 -------- BRAZIL--5.5% CSN Islands VIII Corp. 144A 9.750% due 12/16/13 (Steel)(b) 500 573 CSN Islands VIII Corp. RegS 9.750% due 12/16/13 (Steel)(e) 500 571 Marfrig Overseas Ltd. 144A 9.625% due 11/16/16 (Food Distributors)(b) 200 208 Marfrig Overseas Ltd. RegS 9.625% due 11/16/16 (Food Distributors)(e) 800 829 -------- 2,181 -------- BULGARIA--1.4% Bulgaria Steel Finance BV 12.000% due 5/4/13 (Steel) 600(h) 556 -------- COLOMBIA--1.2% BanColombia S.A. 6.875% due 5/25/17 (Regional Banks) 500 486 -------- CYPRUS--0.6% Ritzio International Ltd. (Royal Bank of Scotland plc) 10.000% due 7/27/10 (Diversified Banks) 250 242 -------- See Notes to Financial Statements 59 PHOENIX EMERGING MARKETS BOND FUND PAR VALUE VALUE (000) (000) -------- -------- DOMINICAN REPUBLIC--1.1% Cerveceria Nacional Dominican Republic 144A 8.000% due 3/27/14 (Brewers)(b) $ 402 $ 409 -------- EGYPT--0.7% Orascom Telecom Finance RegS 7.875% due 2/8/14 (Integrated Telecommunication Services)(e) 300 285 -------- GERMANY--1.7% Kreditanstalt fuer Wiederaufbau 17.000% due 2/5/10 (Investment Banking & Brokerage) 800(i) 678 -------- MEXICO--4.5% America Movil S.A.B. de C.V. 144A 8.460% due 12/18/36 (Wireless Telecommunication Services)(b) 3,000(g) 270 Corp Durango S.A.B. de C.V. Series B 9.500% due 12/31/12 (Paper Packaging)(d) 250 251 Pemex Project Funding Master Trust 8.625% due 12/1/23 (Oil & Gas Exploration & Production) 1,000 1,237 -------- 1,758 -------- MONGOLIA--0.9% Trade & Development Bank of Mongolia LLC 8.625% due 1/22/10 (Regional Banks) 350 348 -------- NETHERLANDS--4.8% GTB Finance B.V. 8.500% due 1/29/12 (Specialized Finance) 250 240 ING Bank NV 7.500% due 3/7/08 (Other Diversified Financial Services) 200 199 Intergas Finance BV 144A 6.375% due 5/14/17 (Oil & Gas Storage & Transportation)(b) 350 338 Majapahit Holding BV 144A(b) (Electric Utilities) 7.750% due 10/17/16 850 865 7.875% due 6/29/37 250 244 -------- 1,886 -------- PANAMA--0.6% AES Panama S.A. 144A 6.350% due 12/21/16 (Independent Power Producers & Energy Traders)(b) 250 244 -------- PAR VALUE VALUE (000) (000) -------- -------- RUSSIA--12.8% Gazprom (Gaz Capital) 144A 7.288% due 8/16/37 (Oil & Gas Exploration & Production)(b) $ 750 $ 797 Gazprom (Gazstream SA) RegS 5.625% due 7/22/13 (Integrated Oil & Gas)(e) 6 6 Mobile Telesystems Finance SA RegS 8.375% due 10/14/10 (Wireless Telecommunication Services)(e) 500 513 OJSC Russian Agricultural Bank (RSHB Capital SA) 144A 7.175% due 5/16/13 (Regional Banks)(b) 200 204 Severstal JSC (Citigroup) RegS 9.250% due 4/19/14 (Steel)(e) 500 540 Sinek Capital SA (Edel Capital SA ) 7.700% due 8/3/15 (Oil & Gas Storage & Transportation) 1,000 1,011 TNK-BP Finance SA 144A(b) (Integrated Oil & Gas) 6.875% due 7/18/11 200 199 7.500% due 7/18/16 400 398 6.625% due 3/20/17 250 233 TNK-BP Finance SA RegS 7.500% due 7/18/16 (Integrated Oil & Gas)(e) 400 399 Vimpelcom (UBS Luxembourg SA) RegS(e) (Wireless Telecommunication) 8.000% due 2/11/10 250 256 8.250% due 5/23/16 500 516 -------- 5,072 -------- SOUTH AFRICA--0.7% Asian Development Bank 10.000% due 8/31/10 (Diversified Banks) 2,000(j) 290 -------- SRI LANKA--0.6% Sri Lanka Telecom plc 6.875% due 11/30/09 (Integrated Telecommunication Services) 250 244 -------- TURKEY--1.4% Bosphorus Financial Services Ltd. RegS 7.358% due 2/15/12 (Other Diversified Financial Services)(e) 550 546 -------- UKRAINE--1.0% Kyivstar GSM (Dresdner Bank AG) 144A 7.750% due 4/27/12 (Integrated Telecommunication Services)(b) 250 248 PAR VALUE VALUE (000) (000) -------- -------- UKRAINE--CONTINUED The Export-Import Bank of Ukraine (Dresdner Bank AG) 7.750% due 9/23/09 (Diversified Banks) $ 150 $ 152 -------- 400 -------- UNITED STATES--4.5% General Electric Capital Corp. 9.500% due 8/4/10 (Consumer Finance) 4,000(g) 375 JP Morgan Chase & Co. 144A 8.000% due 7/9/12 (Other Diversified Financial Services)(b) 12,000(k) 321 Morgan Stanley 144A 10.090% due 5/3/17 (Investment Banking & Brokerage)(b) 2,000(l) 1,070 -------- 1,766 -------- VENEZUELA--1.5% FertiNitro Finance, Inc. 144A 8.290% due 4/1/20 (Fertilizers & Agricultural Chemicals)(b) 500 428 FertiNitro Finance, Inc. RegS 8.290% due 4/1/20 (Fertilizers & Agricultural Chemicals)(e) 200 171 -------- 599 - ---------------------------------------------------------------------------- TOTAL FOREIGN CORPORATE BONDS (IDENTIFIED COST $18,568) 18,779 - ---------------------------------------------------------------------------- SHARES -------- FOREIGN COMMON STOCKS(c)--1.2% GREECE--0.4% Paragon Shipping, Inc. (Marine)(n) 8,000 136 -------- RUSSIA--0.3% VTB Bank OJSC GDR (Diversified Banks)(n) 15,000 134 -------- VIETNAM--0.5% Indochina Capital Vietnam Holdings Ltd. (Other Diversified Financial Services)(n) 22,000 200 - ---------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $515) 470 - ---------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--94.3% (IDENTIFIED COST $36,893) 37,262 - ---------------------------------------------------------------------------- See Notes to Financial Statements 60 PHOENIX EMERGING MARKETS BOND FUND PAR VALUE VALUE (000) (000) -------- -------- SHORT-TERM INVESTMENTS--5.5% COMMERCIAL PAPER(m)--5.5% Govco, Inc. 5.100% due 10/1/07 $ 1,490 $ 1,490 Northern Illinois Gas Co. 4.900% due 10/1/07 695 695 - ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $2,185) 2,185 - ---------------------------------------------------------------------------- TOTAL INVESTMENTS--99.8% (IDENTIFIED COST $39,078) 39,447(a) Other assets and liabilities, net--0.2% 134 -------- NET ASSETS--100.0% $ 39,581 ======== (a) Federal Income Tax Information (reported in 000's): Net unrealized appreciation of investment securities is comprised of gross appreciation of $994 and gross depreciation of $787 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $39,240. (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 September 30, 2007, these securities amounted to a value of (reported in 000's) $10,318 or 26.1 % of net assets. (c) A security is considered to be foreign if the security is issued in a foreign country. The country of risk, noted in the header, is determined based on criteria described in Note 2G "Foreign security country determination" in the Notes to Financial Statements. (d) Variable or step coupon security; interest rate shown reflects the rate currently in effect. (e) Regulation S security. Security is offered and sold outside of the United States, therefore, it is exempt from registration with the SEC under rules 903 and 904 of the Securities Act of 1933. (f) Par value represents Argentina Peso. (g) Par value represents Mexican Peso. (h) Par value represents Euro. (i) Par value represents Turkish Lira. (j) Par value represents South African Rand. (k) Par value represent Indian Rupee. (l) Par value represents Brazilian Real. (m) The rate shown is the discount rate. (n) Non-income producing. See Notes to Financial Statements 61 PHOENIX HIGH YIELD FUND SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 PAR VALUE VALUE (000) (000) -------- -------- DOMESTIC CORPORATE BONDS--83.9% ADVERTISING--1.9% Affinion Group, Inc. 10.125% due 10/15/13 $ 645 $ 684 11.500% due 10/15/15 1,655 1,746 -------- 2,430 -------- AEROSPACE & DEFENSE--0.4% L-3 Communications Corp. 5.875% due 1/15/15 550 531 -------- APPAREL, ACCESSORIES & LUXURY GOODS--1.3% Levi Strauss & Co. 9.750% due 1/15/15 250 264 8.875% due 4/1/16 1,325 1,371 -------- 1,635 -------- AUTO PARTS & EQUIPMENT--0.0% CB Cambridge Industries Liquidating Trust Interests 0% due 12/24/07(e)(f)(j) 5,164 1 -------- AUTOMOTIVE RETAIL--0.8% Hertz Corp. 8.875% due 1/1/14 1,025 1,061 -------- BROADCASTING & CABLE TV--5.2% Charter Communications Holdings I LLC(c) (h) 13.500% due 1/15/14 1,100 1,084 11.750% due 5/15/14 1,095 1,018 Clear Channel Communications, Inc. 7.650% due 9/15/10 1,230 1,220 EchoStar DBS Corp. 7.000% due 10/1/13 135 139 7.125% due 2/1/16 2,405 2,483 United Artists Theatre Circuit, Inc. Series 95-A(k) 9.300% due 7/1/15 364 364 United Artists Theatre Circuit, Inc. Series AW-0(k) 9.300% due 7/1/15 2 2 United Artists Theatre Circuit, Inc. Series BD-1 9.300% due 7/1/15(k) 393 393 United Artists Theatre Circuit, Inc. Series BE-9 9.300% due 7/1/15(k) 14 14 -------- 6,717 -------- BUILDING PRODUCTS--2.8% Gibraltar Industries, Inc. Series B 8.000% due 12/1/15 2,045 1,933 Goodman Global Holdings, Inc. 7.875% due 12/15/12(h) 1,675 1,654 -------- 3,587 -------- PAR VALUE VALUE (000) (000) -------- -------- CASINOS & GAMING--5.1% American Casino & Entertainment Properties LLC 7.850% due 2/1/12 $ 395 $ 408 American Real Estate Partners LP/American Real Estate Finance Corp. 8.125% due 6/1/12 1,515 1,509 7.125% due 2/15/13 705 675 MGM MIRAGE 7.500% due 6/1/16 615 614 7.625% due 1/15/17 1,705 1,696 OED Corp./Diamond Jo LLC 8.750% due 4/15/12(h) 1,050 1,053 Penn National Gaming, Inc. 6.750% due 3/1/15 700 718 -------- 6,673 -------- CATALOG RETAIL--1.8% Harry & David Holdings, Inc. 10.360% due 3/1/12(c) 1,390 1,341 9.000% due 3/1/13 1,055 1,013 -------- 2,354 -------- COMMODITY CHEMICALS--1.4% Lyondell Chemical Co. 8.000% due 9/15/14 160 177 6.875% due 6/15/17 1,535 1,673 -------- 1,850 -------- COMMUNICATIONS EQUIPMENT--0.9% Dycom Industries, Inc. 8.125% due 10/15/15 1,140 1,166 -------- CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--1.3% Ahern Rentals, Inc. 9.250% due 8/15/13 1,070 1,035 Trinity Industries, Inc. 6.500% due 3/15/14 725 700 -------- 1,735 -------- CONSTRUCTION MATERIALS--1.2% Momentive Performance Materials, Inc. 144A 9.750% due 12/1/14(b) 1,510 1,502 -------- CONSUMER FINANCE--8.0% Ford Motor Credit Co. LLC 7.375% due 2/1/11 765 734 9.875% due 8/10/11 360 365 7.000% due 10/1/13 1,200 1,086 8.000% due 12/15/16(h) 1,565 1,466 GMAC LLC 7.250% due 3/2/11 1,000 970 6.000% due 12/15/11(h) 2,730 2,522 6.750% due 12/1/14 1,130 1,026 PAR VALUE VALUE (000) (000) -------- -------- CONSUMER FINANCE--CONTINUED Residential Capital LLC 7.000% due 2/22/11 $ 495 $ 403 7.875% due 6/30/15 2,205 1,780 -------- 10,352 -------- DEPARTMENT STORES--1.6% Bon-Ton Stores, Inc. (The) 10.250% due 3/15/14(h) 2,255 2,120 -------- DIVERSIFIED CHEMICALS--1.4% Huntsman International LLC 7.875% due 11/15/14 1,070 1,145 7.375% due 1/1/15(h) 590 619 -------- 1,764 -------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--1.8% FTI Consulting, Inc. 7.750% due 10/1/16 565 588 Harland Clarke Holdings Corp.(h) 9.500% due 5/15/15 1,050 942 10.308% due 5/15/15(c) 875 785 -------- 2,315 -------- DIVERSIFIED METALS & MINING--2.3% Freeport-McMoRan Copper & Gold, Inc. (Indonesia) 8.375% due 4/1/17(d) 2,735 2,995 -------- ELECTRIC UTILITIES--1.7% Reliant Energy, Inc. 6.750% due 12/15/14 2,125 2,157 -------- FERTILIZERS & AGRICULTURAL CHEMICALS--1.1% Tronox Worldwide LLC/Tronox Finance Corp. 9.500% due 12/1/12 1,410 1,413 -------- FOOD RETAIL--0.5% Stater Brothers Holdings, Inc. 8.125% due 6/15/12(h) 640 655 -------- HEALTH CARE FACILITIES--3.1% Community Health Systems, Inc. 144A 8.875% due 7/15/15(b) 2,560 2,643 HCA, Inc. 144A 9.250% due 11/15/16(b) 1,265 1,347 -------- 3,990 -------- HEALTH CARE SERVICES--0.7% Omnicare, Inc. 6.875% due 12/15/15 1,049 976 -------- See Notes to Financial Statements 62 PHOENIX HIGH YIELD FUND PAR VALUE VALUE (000) (000) -------- -------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS--1.8% TXU Energy Co.7.000% due 3/15/13 $ 995 $ 1,094 TXU Corp. Series O 4.800% due 11/15/09 1,225 1,242 -------- 2,336 -------- INTEGRATED TELECOMMUNICATION SERVICES--4.7% Hughes Network Systems LLC/Hughes Network Systems Finance Corp. 9.500% due 4/15/14 1,960 1,984 Qwest Corp. 7.875% due 9/1/11 500 525 8.875% due 3/15/12 1,000 1,096 Qwest Corp. 144A 6.500% due 6/1/17(b) 760 745 Telcordia Technologies, Inc. 144A(b) 9.110% due 7/15/12(c) 835 783 10.000% due 3/15/13 1,220 1,013 -------- 6,146 -------- METAL & GLASS CONTAINERS--1.2% AEP Industries, Inc. 7.875% due 3/15/13(h) 590 574 Owens-Brockway Glass Container, Inc. 8.750% due 11/15/12 890 931 -------- 1,505 -------- MOVIES & ENTERTAINMENT--1.5% WMG Acquisition Corp. 7.375% due 4/15/14 240 210 WMG Holdings Corp. 9.500% due 12/15/14(c) 2,445 1,724 -------- 1,934 -------- MULTI-UTILITIES--1.0% Aquila, Inc. 14.875% due 7/1/12 1,040 1,316 -------- OFFICE SERVICES & SUPPLIES--1.8% IKON Office Solutions, Inc. 7.750% due 9/15/15 2,320 2,343 -------- OIL & GAS EQUIPMENT & SERVICES--1.6% Complete Production Services, Inc. 8.000% due 12/15/16 345 343 Seitel, Inc. 9.750% due 2/15/14 1,890 1,795 -------- 2,138 -------- OIL & GAS EXPLORATION & PRODUCTION--4.2% Chesapeake Energy Corp. 6.625% due 1/15/16 2,015 2,015 PAR VALUE VALUE (000) (000) -------- -------- OIL & GAS EXPLORATION & PRODUCTION--CONTINUED Pioneer Natural Resources Co. 6.650% due 3/15/17(h) $ 415 $ 390 6.875% due 5/1/18 2,475 2,336 Plains Exploration & Production Co. 7.000% due 3/15/17 815 766 -------- 5,507 -------- OIL & GAS STORAGE & TRANSPORTATION--2.1% Atlas Pipeline Partners LP 8.125% due 12/15/15(h) 605 599 SemGroup LP 144A 8.750% due 11/15/15(b) 2,205 2,166 -------- 2,765 -------- PACKAGED FOODS & MEATS--1.1% Pilgrim's Pride Corp. 7.625% due 5/1/15 445 454 8.375% due 5/1/17(h) 1,015 1,040 -------- 1,494 -------- PAPER PRODUCTS--3.1% Exopac Holding Corp. 11.250% due 2/1/14 2,170 2,278 Mercer International, Inc. 9.250% due 2/15/13(h) 1,780 1,749 -------- 4,027 -------- PRECIOUS METALS & MINERALS--1.0% PNA Group, Inc. 10.750% due 9/1/16 1,225 1,256 -------- PUBLISHING--1.8% Donnelley (RH), Inc. 144A 8.875% due 10/15/17(b) 745 760 Idearc, Inc. 8.000% due 11/15/16 1,635 1,639 -------- 2,399 -------- SEMICONDUCTORS--1.8% Freescale Semiconductor, Inc. 8.875% due 12/15/14 1,335 1,295 10.125% due 12/15/16(h) 1,050 982 -------- 2,277 -------- SPECIALIZED FINANCE--0.8% PNA Intermediate Holding Corp. 144A 12.558% due 2/15/13(b) (c) 1,025 1,010 -------- SPECIALIZED REITS--2.9% Felcor Lodging LP 8.500% due 6/1/11 1,030 1,092 Host Marriott LP Series O 6.375% due 3/15/15 1,295 1,272 Ventas Realty LP/Ventas Capital Corp. 6.750% due 4/1/17 1,400 1,404 -------- 3,768 -------- PAR VALUE VALUE (000) (000) -------- -------- SPECIALTY STORES--0.4% Morris Publishing Group LLC 7.000% due 8/1/13 $ 745 $ 587 -------- TOBACCO--2.8% Alliance One International, Inc. 11.000% due 5/15/12 1,525 1,628 Reynolds American, Inc. 7.300% due 7/15/15 455 482 7.625% due 6/1/16 985 1,054 7.750% due 6/1/18 485 519 -------- 3,683 -------- TRADING COMPANIES & DISTRIBUTORS--0.4% Ashtead Capital, Inc. 144A 9.000% due 8/15/16(b) 510 505 -------- TRUCKING--1.6% Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 7.750% due 5/15/16 2,100 2,068 - ---------------------------------------------------------------------------- TOTAL DOMESTIC CORPORATE BONDS (IDENTIFIED COST $109,737) 109,043 - ---------------------------------------------------------------------------- FOREIGN CORPORATE BONDS(d)--10.0% CANADA--4.3% Cascades, Inc. 7.250% due 2/15/13(h) 1,900 1,872 CHC Helicopter Corp. 7.375% due 5/1/14 1,350 1,289 Dollarama 144A 11.160% due 8/15/12(b) (c) 1,130 1,141 Russel Metals, Inc. 6.375% due 3/1/14 1,365 1,287 -------- 5,589 -------- CHINA--1.0% NXP BV/NXP Funding LLC 7.875% due 10/15/14 730 705 9.500% due 10/15/15(h) 650 608 -------- 1,313 -------- LUXEMBOURG--1.1% Basell AF SCA 144A 8.375% due 8/15/15(b) (h) 1,510 1,385 -------- POLAND--0.0% Poland Telecom Finance BV Series B 14.000% due 12/1/07(e)(f)(j) 4,942 62 -------- SINGAPORE--0.8% Avago Technologies Finance Ltd. 10.125% due 12/1/13 1,005 1,085 -------- UNITED KINGDOM--1.2% Ineos Group Holdings plc 144A 8.500% due 2/15/16(b) (h) 1,575 1,516 -------- See Notes to Financial Statements 63 PHOENIX HIGH YIELD FUND PAR VALUE VALUE (000) (000) -------- -------- UNITED STATES--1.6% Stratos Global Corp. 9.875% due 2/15/13(h) $ 1,921 $ 2,031 - -------------------------------------------------------------------------------- TOTAL FOREIGN CORPORATE BONDS (IDENTIFIED COST $17,923) 12,981 - -------------------------------------------------------------------------------- SHARES -------- DOMESTIC COMMON STOCKS--0.0% COMMERCIAL PRINTING--0.0% ACG Holdings, Inc.(f)(j) 76 0 - -------------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $358) 0 - -------------------------------------------------------------------------------- TOTAL LONG-TERM INVESTMENTS--93.9% (IDENTIFIED COST $128,018) 122,024 - -------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS--22.4% MONEY MARKET MUTUAL FUNDS--17.3% State Street Navigator Prime Plus (5.30% seven-day effective yield)(g) 22,469,027 22,469 PAR VALUE VALUE (000) (000) -------- -------- FEDERAL AGENCY SECURITIES(i)--5.1% FHLB 4.000% due 10/1/07 $ 1,600 1,600 FHLB 4.700% due 10/19/07 5,000 4,988 -------- 6,588 - ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $29,057) 29,057 - ---------------------------------------------------------------------------- TOTAL INVESTMENTS--116.3% (IDENTIFIED COST $157,075) 151,081(a) Other assets and liabilities, net--(16.3)% (21,203) -------- NET ASSETS--100.0% $129,878 ======== (a) Federal Income Tax Information (reported in 000's): Net unrealized depreciation of investment securities is comprised of gross appreciation of $1,509 and gross depreciation of $7,678 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $157,250. (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 September 30, 2007, these securities amounted to a value of $16,517 (reported in 000's) or 12.7% of net assets. (c) Variable or step coupon security; interest rate shown reflects the rate currently in effect. (d) A security is considered to be foreign if the security is issued in a foreign country. The country of risk, noted parenthetically or in the header, is determined based on criteria described in Note 2G, "Foreign security country determination" in the Notes to Financial Statements. (e) Security in default. (f) Non-income producing. (g) Represents security purchased with cash collateral received for securities on loan. (h) All or a portion of security is on loan. (i) The rate shown is the discount rate. (j) Illiquid and restricted securities. Security valued at fair value as determined in good faith by or under the direction of the Trustees. At September 30, 2007, these securities amounted to a value of $63 (reported in 000's) or 0% of net assets. For acquisition information see Note 7 "Illiquid and Restricted Securities" in the Notes to Financial Statements. (k) Illiquid security. At September 30, 2007, these securities amounted to a value of $773 (reported in 000's) or 0.6% of the net assets. See Notes to Financial Statements 64 PHOENIX MONEY MARKET FUND SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 PAR VALUE VALUE (000) (000) -------- -------- FEDERAL AGENCY SECURITIES(d)--11.4% FHLB 5.250% due 10/3/07 $ 2,000 $ 2,000 5.270% due 11/21/07 2,000 2,000 3.250% due 12/17/07 1,500 1,494 5.375% due 5/5/08 2,000 2,000 5.375% due 8/20/08 2,065 2,065 5.375% due 9/5/08 1,500 1,500 - ---------------------------------------------------------------------------- TOTAL FEDERAL AGENCY SECURITIES (IDENTIFIED COST $11,059) 11,059 - ---------------------------------------------------------------------------- FEDERAL AGENCY SECURITIES--VARIABLE(c)--1.7% SBA (Final Maturity 2/25/23) 5.750% due 10/1/07 256 256 SBA (Final Maturity 1/25/21) 5.750% due 10/1/07 27 27 SBA (Final Maturity 10/25/22) 5.750% due 10/1/07 429 428 SBA (Final Maturity 11/25/21) 5.875% due 10/1/07 297 297 SBA (Final Maturity 2/25/23) 5.750% due 10/1/07 198 198 SBA (Final Maturity 3/25/24) 5.625% due 10/1/07 139 119 SBA (Final Maturity 5/25/21) 5.750% due 10/1/07 116 115 SBA (Final Maturity 9/25/23) 5.625% due 10/1/07 230 230 - -------------------------------------------------------------------------------- TOTAL FEDERAL AGENCY SECURITIES--VARIABLE (IDENTIFIED COST $1,670) 1,670 - -------------------------------------------------------------------------------- COMMERCIAL PAPER(f)--67.0% 3M 4.770% due 10/9/07 1,000 999 Archer Daniels Midland Co. 5.050% due 10/30/07 1,975 1,967 5.080% due 11/6/07 2,745 2,731 Bank of America Corp. 5.260% due 10/9/07 1,800 1,798 5.360% due 11/19/07 1,400 1,390 Cargill, Inc. 4.900% due 10/25/07 2,000 1,993 4.900% due 10/26/07 2,000 1,993 4.850% due 10/31/07 850 847 Ciesco LLC 5.280% due 10/15/07 2,660 2,654 Coca-Cola Co. 5.240% due 11/15/07 1,810 1,798 PAR VALUE VALUE (000) (000) -------- -------- Danaher Corp. 5.000% due 10/1/07 $ 2,620 $ 2,620 Danske Corp. 5.620% due 10/15/07 1,200 1,197 5.165% due 10/30/07 1,500 1,494 Eaton Corp. 5.250% due 10/16/07 2,250 2,245 Gemini Securitization LLC 5.350% due 10/9/07 2,020 2,018 General Electric Capital Corp. 5.250% due 10/4/07 729 729 5.230% due 10/16/07 1,000 998 5.240% due 11/6/07 1,100 1,094 5.250% due 11/6/07 1,200 1,194 Goldman Sachs Group, Inc. (The) 5.250% due 10/30/07 2,000 1,992 Govco, Inc. 5.950% due 10/15/07 1,050 1,048 5.245% due 10/23/07 1,500 1,495 5.280% due 11/5/07 2,200 2,189 Honeywell International, Inc. 5.300% due 11/8/07 552 549 5.270% due 11/20/07 1,520 1,509 Kimberly-Clark Worldwide 5.000% due 10/19/07 1,955 1,950 NetJets, Inc. 4.750% due 12/10/07 2,500 2,477 PACCAR Financial Corp. 4.750% due 10/4/07 1,465 1,464 5.250% due 12/3/07 1,500 1,486 Private Export Funding Corp. 5.300% due 10/10/07 1,050 1,049 4.900% due 12/18/07 1,580 1,563 4.760% due 1/31/08 2,100 2,066 Sysco Corp. 5.250% due 11/27/07 2,500 2,479 4.750% due 12/19/07 515 510 Target Corp. 4.750% due 10/22/07 1,300 1,296 4.770% due 10/29/07 580 578 Toyota Motor Credit Corp. 4.800% due 10/17/07 500 499 5.280% due 12/13/07 2,000 1,979 5.200% due 12/20/07 2,070 2,046 UBS Finance Delaware LLC 5.255% due 10/10/07 2,100 2,097 5.440% due 10/22/07 300 299 5.500% due 10/23/07 500 498 - ---------------------------------------------------------------------------- TOTAL COMMERCIAL PAPER (IDENTIFIED COST $64,877) 64,877 - ---------------------------------------------------------------------------- PAR VALUE VALUE (000) (000) -------- -------- MEDIUM-TERM NOTES--19.7% Citigroup Global Market 6.500% due 2/15/08 $1,500 $ 1,506 Danske Bank A/S 144A (Denmark) 5.466% due 10/17/08(b) (c) (e) 2,000 2,000 FleetBoston Financial Corp. 3.850% due 2/15/08 1,500 1,492 General Electric Capital Corp. Series A 6.500% due 12/10/07 680 682 HSBC Finance Corp. 5.836% due 2/15/08 2,325 2,330 HSH Nordbank AG NY 144A (Germany) 5.196% due 9/22/08(b) (c) (e) 5,000 5,000 National Australia Bank Ltd. 144A (Australia) 5.809% due 10/6/08(b) (c) (e) 2,000 2,000 Nordea Bank AB 144A (Sweden) 5.810% due 10/9/08(b) (c) (e) 2,000 2,000 Wells Fargo & Co. 5.694% due 10/17/08(c) 2,000 2,000 - -------------------------------------------------------------------------------- TOTAL MEDIUM-TERM NOTES (IDENTIFIED COST $19,010) 19,010 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS--99.8% (IDENTIFIED COST $96,616) 96,616(a) Other assets and liabilities, net--0.2% 203 -------- NET ASSETS--100.0% $ 96,819 ======== (a) Federal Income Tax Information (reported in 000's): At September 30, 2007, the aggregate cost of securities was the same for book and federal income tax purposes. (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 September 30, 2007, these securities amounted to a value of $11,000 (reported in 000's) or 11.36% of net assets. (c) Variable or step coupon security; interest rate shown reflects the rate currently in effect. (d) The interest rate shown is the coupon rate. (e) A security is considered foreign if the security is issued in a foreign country. The country of risk, noted parenthetically, is determined based on criteria described in Note 2G, "Foreign security country determination" in the Notes to Financial Statements. (f) The rate shown is the discount rate. See Notes to Financial Statements 65 PHOENIX MULTI-SECTOR FIXED INCOME FUND SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 PAR VALUE VALUE (000) (000) -------- -------- U.S. GOVERNMENT SECURITIES--0.1% U.S. TREASURY BONDS--0.1% U.S. Treasury Bond 4.750% due 2/15/37 $ 75 $ 74 - ---------------------------------------------------------------------------- TOTAL U.S. GOVERNMENT SECURITIES (IDENTIFIED COST $74) 74 - ---------------------------------------------------------------------------- AGENCY MORTGAGE-BACKED SECURITIES--7.3% FNMA 5.500% due 4/1/34 155 153 5.500% due 6/1/34 1,178 1,157 6.000% due 8/1/34 1,086 1,091 5.500% due 1/1/35 2,485 2,439 5.500% due 2/1/35 1,007 988 6.000% due 3/1/36 760 762 6.500% due 8/1/36 412 420 6.000% due 10/1/36 1,354 1,357 6.000% due 1/1/37 454 454 FNMA 04-W6, 1A4 5.500% due 7/25/34 1,052 1,051 FNMA 05-57, CK 5.000% due 7/25/35 558 556 FNMA 05-74, AG 5.000% due 9/25/35 388 386 - ---------------------------------------------------------------------------- TOTAL AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $10,907) 10,814 - ---------------------------------------------------------------------------- AGENCY NON-MORTGAGE-BACKED SECURITIES--2.5% FHLB 6.000% due 6/29/22 375 380 FHLMC 5.200% due 3/5/19 1,900 1,873 5.300% due 5/12/20 1,500 1,471 - ---------------------------------------------------------------------------- TOTAL AGENCY NON-MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $3,697) 3,724 - ---------------------------------------------------------------------------- MUNICIPAL BONDS--0.4% MASSACHUSETTS--0.2% Commonwealth of Massachusetts General Obligation Series C (FSA Insured) 5.500% due 12/1/17 270 306 -------- SOUTH DAKOTA--0.2% South Dakota State Educational Enhancement Funding Corp. Taxable Series A 6.720% due 6/1/25 287 285 - ---------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS (IDENTIFIED COST $590) 591 - ---------------------------------------------------------------------------- ASSET-BACKED SECURITIES--2.3% Bear Stearns Structured Products, Inc. 05-20N, B 144A 8.631% due 10/25/45(b) (c) 750 618 PAR VALUE VALUE (000) (000) -------- -------- Bombardier Capital Mortgage Securitization Corp. 99-A, A3 5.980% due 1/15/18(c) $ 960 $ 909 Dunkin Securitization 06-1, M1 144A 8.285% due 6/20/31(b) 690 709 Green Tree Financial Corp. 99-2, M2 7.210% due 12/1/30(c) 681 126 IndyMac Manufactured Housing Contract 98-1, A3 6.370% due 9/25/28 785 785 Lehman XS Net Interest Margin 06-GPM7, A1 144A 6.250% due 12/28/46(b) 217 208 MASTR Alternative Net Interest Margin 06-6, N1 144A 6.129% due 9/26/46(b) (c)(q) 108 71 - ---------------------------------------------------------------------------- TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $3,587) 3,426 - ---------------------------------------------------------------------------- DOMESTIC CORPORATE BONDS--29.2% AEROSPACE & DEFENSE--1.2% DRS Technologies, Inc. 6.625% due 2/1/16 500 496 L-3 Communications Corp. 7.625% due 6/15/12 425 437 L-3 Communications Corp. Series B 6.375% due 1/15/14 550 542 6.125% due 10/15/15 250 247 -------- 1,722 -------- AIRLINES--2.9% American Airlines, Inc. 01-1 6.977% due 5/23/21 1,681 1,572 Continental Airlines, Inc. 98-1A 6.648% due 3/15/19 499 503 Delta Air Lines, Inc. 00-1 7.379% due 5/18/10 771 779 United Airlines, Inc. 00-2 7.032% due 10/1/10 911 915 United Airlines, Inc. 01-1 6.071% due 3/1/13 470 473 -------- 4,242 -------- APPLICATION SOFTWARE--0.2% Intuit, Inc. 5.750% due 3/15/17 265 253 -------- ASSET MANAGEMENT & CUSTODY BANKS--0.3% Janus Capital Group, Inc. 6.250% due 6/15/12 375 381 -------- AUTOMOBILE MANUFACTURERS--0.2% Ford Motor Co. 7.450% due 7/16/31 375 296 -------- PAR VALUE VALUE (000) (000) -------- -------- AUTOMOTIVE RETAIL--0.3% Hertz Corp. 8.875% due 1/1/14 $ 350 $ 362 10.500% due 1/1/16 100 109 -------- 471 -------- BROADCASTING & CABLE TV--2.2% Charter Communications Holdings I LLC 11.750% due 5/15/14(c) 175 163 Charter Communications Holdings I LLC/Charter Communications Holdings I Capital Corp. 11.000% due 10/1/15 375 386 Comcast Cable Holdings LLC 7.875% due 8/1/13 500 548 COX Communications, Inc. 5.450% due 12/15/14 375 364 DIRECTV Holdings LLC/DIRECTV Financing Co., Inc. 6.375% due 6/15/15 1,000 954 EchoStar DBS Corp. 6.625% due 10/1/14 600 604 PanAmSat Corp./Intelsat Corp. 9.000% due 6/15/16 200 207 -------- 3,226 -------- BUILDING PRODUCTS--1.3% Building Materials Corp. of America 7.750% due 8/1/14 390 355 Esco Corp. 144A 8.625% due 12/15/13(b) 600 594 Masco Corp. 5.850% due 3/15/17 540 522 Owens Corning, Inc. 6.500% due 12/1/16 495 479 -------- 1,950 -------- CASINOS & GAMING--1.1% Harrah's Operating Co., Inc. 5.625% due 6/1/15 225 179 MGM MIRAGE 8.500% due 9/15/10 300 315 Pokagon Gaming Authority 144A 10.375% due 6/15/14(b) 125 138 River Rock Entertainment Authority (The) 9.750% due 11/1/11 250 259 Seminole Hard Rock Entertainment, Inc./Seminole Hard Rock International LLC 144A 8.194% due 3/15/14(b)(c) 75 74 Station Casinos, Inc. 6.875% due 3/1/16 750 656 -------- 1,621 -------- See Notes to Financial Statements 66 PHOENIX MULTI-SECTOR FIXED INCOME FUND PAR VALUE VALUE (000) (000) -------- -------- COMPUTER HARDWARE--0.2% International Business Machines Corp. 5.700% due 9/14/17 $ 220 $ 222 -------- CONSUMER FINANCE--3.2% Ford Motor Credit Co. LLC 8.359% due 11/2/07(c) 150 150 7.875% due 6/15/10 385 376 8.625% due 11/1/10 395 392 9.875% due 8/10/11 345 350 9.806% due 4/15/12(c) 55 57 7.800% due 6/1/12 340 324 GMAC LLC 7.250% due 3/2/11 1,000 970 6.875% due 9/15/11 400 381 6.000% due 12/15/11 1,000 924 Residential Capital LLC 7.125% due 11/21/08 275 246 7.875% due 6/30/15 305 247 SLM Corp. 5.450% due 4/25/11 300 283 -------- 4,700 -------- DATA PROCESSING & OUTSOURCED SERVICES--0.7% Broadridge Financial Solutions, Inc. 6.125% due 6/1/17 525 499 Western Union Co. (The) 5.930% due 10/1/16 560 553 -------- 1,052 -------- DISTILLERS & VINTNERS--0.2% Constellation Brands, Inc. 7.250% due 9/1/16 220 221 Constellation Brands, Inc. 144A 7.250% due 5/15/17(b) 120 121 -------- 342 -------- DIVERSIFIED BANKS--0.2% Blackrock, Inc. 6.250% due 9/15/17 225 226 -------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--0.8% Equifax, Inc. 6.300% due 7/1/17 1,000 1,010 Mobile Mini, Inc. 144A 6.875% due 5/1/15(b) 250 244 -------- 1,254 -------- DIVERSIFIED METALS & MINING--1.2% Freeport-McMoRan Copper & Gold, Inc. (Indonesia) 6.875% due 2/1/14(d) 320 327 Glencore Funding LLC 144A 6.000% due 4/15/14(b) 1,000 986 Neenah Foundry Co. 9.500% due 1/1/17 500 460 -------- 1,773 -------- ELECTRICAL COMPONENTS & EQUIPMENT--0.3% General Cable Corp. 7.125% due 4/1/17 500 492 -------- PAR VALUE VALUE (000) (000) -------- -------- ENVIRONMENTAL & FACILITIES SERVICES--0.1% Allied Waste North America, Inc. Series B 5.750% due 2/15/11 $ 150 $ 148 -------- GAS UTILITIES--0.3% AmeriGas Partners LP 7.250% due 5/20/15 500 495 -------- HEALTH CARE FACILITIES--0.4% HCA, Inc. 144A 9.250% due 11/15/16(b) 200 213 Psychiatric Solutions, Inc. 7.750% due 7/15/15 375 382 -------- 595 -------- HEALTH CARE SERVICES--0.3% Quest Diagnostics, Inc. 6.400% due 7/1/17 450 456 -------- HEALTH CARE SUPPLIES--0.2% Viant Holdings, Inc. 144A 10.125% due 7/15/17(b) 295 276 -------- HOTELS, RESORTS & CRUISE LINES--0.8% Royal Caribbean Cruises Ltd. 6.875% due 12/1/13 1,250 1,241 -------- INTEGRATED TELECOMMUNICATION SERVICES--0.9% Embarq Corp. 7.082% due 6/1/16 325 337 Qwest Corp. 144A 6.500% due 6/1/17(b) 215 212 Windstream Corp. 8.625% due 8/1/16 500 536 7.000% due 3/15/19 250 245 -------- 1,330 -------- INVESTMENT BANKING & BROKERAGE--0.3% Merrill Lynch & Co., Inc. 6.110% due 1/29/37 500 472 -------- LEISURE PRODUCTS--0.2% Hasbro, Inc. 6.300% due 9/15/17 275 274 -------- LIFE SCIENCES TOOLS & SERVICES--0.4% Fisher Scientific International, Inc. 6.750% due 8/15/14 600 605 -------- METAL & GLASS CONTAINERS--0.4% Plastipak Holdings, Inc. 144A 8.500% due 12/15/15(b) 500 520 -------- MORTGAGE REITS--0.6% iStar Financial, Inc. Series B 5.950% due 10/15/13 1,000 940 -------- MOVIES & ENTERTAINMENT--0.5% Time Warner, Inc. 6.875% due 5/1/12 370 389 PAR VALUE VALUE (000) (000) -------- -------- MOVIES & ENTERTAINMENT--CONTINUED Viacom, Inc. 6.250% due 4/30/16 $ 375 $ 376 -------- 765 -------- OFFICE ELECTRONICS--0.2% Xerox Corp. 6.750% due 2/1/17 350 359 -------- OIL & GAS EXPLORATION & PRODUCTION--1.5% Denbury Resources, Inc. 7.500% due 4/1/13 600 617 Forest Oil Corp. 144A 7.250% due 6/15/19(b) 700 703 Plains Exploration & Production Co. 7.750% due 6/15/15 400 394 Swift Energy Co. 7.625% due 7/15/11 500 504 -------- 2,218 -------- OIL & GAS REFINING & MARKETING--0.3% Tesoro Corp. 144A 6.500% due 6/1/17(b) 480 479 -------- OIL & GAS STORAGE & TRANSPORTATION--0.5% Enterprise Products Partners L.P. 6.300% due 9/15/17 395 396 Kinder Morgan Management LLC 5.700% due 1/5/16 400 366 -------- 762 -------- PACKAGED FOODS & MEATS--0.3% Tyson Foods, Inc. 6.850% due 4/1/16 400 414 -------- PAPER PACKAGING--0.1% Jefferson Smurfit Corp. 8.250% due 10/1/12 135 136 -------- PAPER PRODUCTS--0.6% Abitibi-Consolidated Finance LP 7.875% due 8/1/09 530 474 Verso Paper Holdings LLC & Verso Paper, Inc. Series B 11.375% due 8/1/16 375 397 -------- 871 -------- PUBLISHING--0.8% Donnelley (RH), Inc. 144A 8.875% due 10/15/17(b) 275 281 Idearc, Inc. 8.000% due 11/15/16 500 501 Reader's Digest Association, Inc. (The) 144A 9.000% due 2/15/17(b) 500 452 -------- 1,234 -------- RESTAURANTS--0.0% Outback Steakhouse, Inc. 144A 10.000% due 6/15/15(b) 50 45 -------- See Notes to Financial Statements 67 PHOENIX MULTI-SECTOR FIXED INCOME FUND PAR VALUE VALUE (000) (000) -------- -------- SPECIALIZED CONSUMER SERVICES--0.7% Stewart Enterprises, Inc. 6.250% due 2/15/13 $ 1,000 $ 977 -------- SPECIALIZED FINANCE--0.1% Yankee Acquisition Corp. Series B 9.750% due 2/15/17 125 119 -------- SPECIALIZED REITS--1.2% Health Care REIT, Inc. 5.875% due 5/15/15 1,000 958 Host Hotels & Resorts LP 6.875% due 11/1/14 400 401 Realty Income Corp. 6.750% due 8/15/19 425 426 -------- 1,785 -------- TOBACCO--0.6% Reynolds American, Inc. 7.300% due 7/15/15 500 532 7.625% due 6/1/16 375 401 -------- 933 -------- WIRELESS TELECOMMUNICATION SERVICES--0.4% Nextel Communications, Inc. Series D 7.375% due 8/1/15 650 661 - ---------------------------------------------------------------------------- TOTAL DOMESTIC CORPORATE BONDS (IDENTIFIED COST $43,869) 43,333 - ---------------------------------------------------------------------------- NON-AGENCY MORTGAGE-BACKED SECURITIES--8.6% Adjustable Rate Mortgage Trust 05-3, 2A1 4.697% due 7/25/35(c) 921 914 American Home Mortgage Assets 07-2, M4 5.661% due 3/25/47(c) 644 601 American Tower Trust L 07-1A, C 144A 5.615% due 4/15/37(b) 750 716 Bear Stearns Structured Products, Inc. 04-15, A2 144A 0% due 11/27/34(b) 211 201 Bear Stearns Structured Products, Inc. 05-10 144A 7.628% due 4/26/35(b) (c) 432 415 Chase Mortgage Finance Corp. 06-A1, 4A1 6.045% due 9/25/36(c) 1,242 1,243 Citicorp Mortgage Securities, Inc. 06-7, 1A1 6.000% due 12/25/36 983 981 First Horizon Assets Securities, Inc. 05-AR1, 2A1 5.010% due 4/25/35(c) 657 657 Franchise Mortgage Acceptance Co. Loan Receivables Trust 98-CA, A2 144A 6.660% due 1/15/12(b) 227 214 Harborview Net Interest Margin Corp. 06-12, N1 144A 6.409% due 12/19/36(b) 116 115 IndyMac Index Mortgage Loan Trust 06-AR25, 3A1 6.373% due 9/25/36(c) 1,041 1,066 PAR VALUE VALUE (000) (000) -------- -------- Lehman Brothers-UBS Commercial Mortgage Trust 07-C2, H 144A 6.180% due 2/15/40(b) (c) $ 850 $ 731 Lehman XS Net Interest Margin 06-GPM5, A1 144A 6.250% due 10/28/46(b) 357 345 MASTR Resecuritization Trust 05-1 144A 5.000% due 10/28/34(b) 354 334 Residential Accredit Loans, Inc. 02-QS12, B1 6.250% due 9/25/32 405 339 Residential Accredit Loans, Inc. 05-QA4, A5 5.450% due 4/25/35(c) 886 888 Structured Asset Securities Corp. 03-32, 1A1 5.208% due 11/25/33(c) 551 530 Structured Asset Securities Corp. 05-1, 6A1 6.000% due 2/25/35 920 915 Timberstar Trust 06-1, C 144A 5.884% due 10/15/36(b) 1,000 944 Wells Fargo Mortgage Backed Securities Trust 05-5, 1A1 5.000% due 5/25/20 584 569 - ---------------------------------------------------------------------------- TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $13,019) 12,718 - ---------------------------------------------------------------------------- FOREIGN GOVERNMENT SECURITIES--21.3% ARGENTINA--2.4% Republic of Argentina PIK Interest Capitalization 8.280% due 12/31/33 1,310 1,192 Republic of Argentina Series GDP 0% due 12/15/35(c) 18,193 2,374 -------- 3,566 -------- AUSTRALIA--1.1% Commonwealth of Australia Series 909 7.500% due 9/15/09 1,710(f) 1,547 -------- BRAZIL--2.0% Federative Republic of Brazil 12.500% due 1/5/16 2,309(g) 1,470 10.250% due 1/10/28 550(g) 311 11.000% due 8/17/40 840 1,125 -------- 2,906 -------- CANADA--1.4% Commonwealth of Canada 4.250% due 9/1/09 2,010(i) 2,026 -------- COLOMBIA--0.5% Republic of Colombia 11.750% due 3/1/10 750,000(j) 388 10.000% due 1/23/12 250 292 -------- 680 -------- PAR VALUE VALUE (000) (000) -------- -------- EL SALVADOR--0.3% Republic of El Salvador 144A 7.625% due 9/21/34(b) $ 350 $ 397 -------- GERMANY--2.0% Federal Republic of Germany 144A 3.250% due 4/17/09(b) 2,056(k) 2,895 -------- GUATEMALA--0.5% Republic of Guatemala 144A 8.125% due 10/6/34(b) 675 783 -------- MEXICO--0.8% United Mexican States Series MI10 9.500% due 12/18/14 12,365(m) 1,234 -------- NEW ZEALAND--0.5% Commonwealth of New Zealand Series 708 6.000% due 7/15/08 1,060(l) 797 -------- NORWAY--1.3% Kingdom of Norway 5.500% due 5/15/09 10,575(n) 1,981 -------- PHILIPPINES--0.6% Republic of Philippines 7.750% due 1/14/31 850 946 -------- RUSSIA--0.1% Russian Federation RegS 7.500% due 3/31/30(c) (e) 152 170 -------- SWEDEN--1.3% Kingdom of Sweden Series 1043 5.000% due 1/28/09 12,500(o) 1,965 -------- TRINIDAD AND TOBAGO--0.1% Republic of Trinidad and Tobago RegS 9.875% due 10/1/09(e) 135 148 -------- TURKEY--1.5% Republic of Turkey 0% due 5/6/09(c) 1,400(p) 907 9.000% due 6/30/11 500 552 11.500% due 1/23/12 450 542 7.250% due 3/15/15 250 262 -------- 2,263 -------- UKRAINE--0.7% Republic of Ukraine 144A 6.580% due 11/21/16(b) 1,000 1,012 -------- UNITED KINGDOM--0.3% United Kingdom Treasury Bond 4.250% due 3/7/11 200(h) 399 -------- URUGUAY--1.2% Republic of Uruguay 8.000% due 11/18/22 1,650 1,840 -------- See Notes to Financial Statements 68 PHOENIX MULTI-SECTOR FIXED INCOME FUND PAR VALUE VALUE (000) (000) -------- -------- VENEZUELA--2.7% Republic of Venezuela 5.750% due 2/26/16 $ 350 $ 297 7.650% due 4/21/25 750 673 9.250% due 9/15/27 875 908 Republic of Venezuela RegS 5.375% due 8/7/10(e) 2,260 2,130 -------- 4,008 - ---------------------------------------------------------------------------- TOTAL FOREIGN GOVERNMENT SECURITIES (IDENTIFIED COST $29,187) 31,563 - ---------------------------------------------------------------------------- FOREIGN CORPORATE BONDS(d)--13.5% BRAZIL--0.4% Vale Overseas Ltd. 6.250% due 1/11/16 500 506 6.250% due 1/23/17 140 142 -------- 648 -------- CANADA--1.5% Catalyst Paper Corp. 7.375% due 3/1/14 375 281 European Investment Bank 144A 4.600% due 1/30/37(b) 375(i) 349 Rogers Cable, Inc. 7.875% due 5/1/12 1,000 1,078 Rogers Wireless Communications, Inc. 6.375% due 3/1/14 575 582 -------- 2,290 -------- CHILE--0.7% Empresa Nacional de Electricidad SA 8.350% due 8/1/13 350 392 Petropower I Funding Trust 144A 7.360% due 2/15/14(b) 712 716 -------- 1,108 -------- CYPRUS--0.1% ABH Financial Ltd. (Alfa Markets Ltd.) 144A 8.200% due 6/25/12(b) 150 139 -------- EGYPT--0.2% Orascom Telecom Finance SCA 144A 7.875% due 2/8/14(b) 300 285 -------- GERMANY--0.3% Aries Vermoegensverwaltung GmbH 144A 7.750% due 10/25/09(b) 250(k) 387 -------- HONG KONG--0.3% China Properties Group Ltd. 144A 9.125% due 5/4/14(b) 500 451 -------- INDIA--0.2% ICICI Bank Ltd. 144A 6.375% due 4/30/22(b) (c) 375 351 -------- PAR VALUE VALUE (000) (000) -------- -------- JAPAN--0.5% Resona Bank Ltd. 144A 5.850% due 9/29/49(b) (c) $ 750 $ 707 -------- KAZAKHSTAN--1.5% Kazkommerts International BV RegS 8.000% due 11/3/15(e) 250 230 Tengizchevroil Finance Co. SARL 144A 6.124% due 11/15/14(b) 1,000 990 TuranAlem Finance BV 144A 7.875% due 6/2/10(b) 1,000 952 -------- 2,172 -------- LUXEMBOURG--0.1% Tyco Electronic Group SA 144A 6.000% due 10/1/12(b) 125 127 -------- MALAYSIA--0.5% Malaysia International Shipping Corp. Capital Ltd. 144A 6.125% due 7/1/14(b) 750 765 -------- MEXICO--0.3% Vitro S.A. de C.V. 144A 8.625% due 2/1/12(b) 370 366 -------- NETHERLANDS--0.6% Majapahit Holding BV 144A 7.250% due 6/28/17(b) 825 813 -------- RUSSIA--2.3% AK Transneft OJSC (TransCapitalInvest Ltd.) 144A 5.670% due 3/5/14(b) 390 381 Russian Agricultural Bank OJSC (RSHB Capital SA) 144A 6.299% due 5/15/17(b) 380 359 Gazprom International SA 144A 7.201% due 2/1/20(b) 906 932 Gazprom OAO (Gaz Capital SA) 144A(b) 6.212% due 11/22/16 935 929 6.510% due 3/7/22 315 313 OJSC Vimpel Communications (UBS Luxembourg SA) 144A 8.375% due 10/22/11(b) 500 524 -------- 3,438 -------- SINGAPORE--0.3% UOB Cayman Ltd. 144A 5.796% due 12/29/49(b) (c) 500 487 -------- SOUTH KOREA--0.8% Hynix Semiconductor, Inc. 144A 7.875% due 6/27/17(b) 200 195 Woori Bank 144A 6.125% due 5/3/16(b) (c) 1,000 1,000 -------- 1,195 -------- SWITZERLAND--0.2% Petroplus Finance Ltd. 144A 6.750% due 5/1/14(b) 375 362 -------- PAR VALUE VALUE (000) (000) -------- -------- UNITED ARAB EMIRATES--0.6% Abu Dhabi National Energy Co. 144A 5.875% due 10/27/16(b) $ 825 $ 824 -------- UNITED KINGDOM--0.6% Ineos Group Holdings plc 144A 8.500% due 2/15/16(b) 500 481 Vodafone Group plc 6.150% due 2/27/37 375 361 -------- 842 -------- UNITED STATES--1.0% Morgan Stanley 144A 10.090% due 5/3/17(b) 1,000(g) 535 Nova Chemicals Corp. 8.484% due 11/15/13(c) 975 960 -------- 1,495 -------- VENEZUELA--0.5% Petroleos de Venezuela 5.250% due 4/12/17 950 703 - ---------------------------------------------------------------------------- TOTAL FOREIGN CORPORATE BONDS (IDENTIFIED COST $20,247) 19,955 - ---------------------------------------------------------------------------- DOMESTIC CONVERTIBLE BONDS--0.2% PHARMACEUTICALS--0.2% Par Pharmaceutical Cos., Inc. 2.875% due 9/30/10 300 277 - ---------------------------------------------------------------------------- TOTAL DOMESTIC CONVERTIBLE BONDS (IDENTIFIED COST $261) 277 - ---------------------------------------------------------------------------- DOMESTIC LOAN AGREEMENTS--10.8% ADVERTISING--0.1% Lamar Media Corp. Tranche F 6.875% due 3/31/14(c) 125 124 -------- ALTERNATIVE CARRIERS--0.1% Level 3 Communications, Inc. Tranche B 7.605% due 3/13/14(c) 90 88 -------- APPAREL RETAIL--0.6% Hanesbrands, Inc. Tranche B 7.205% due 9/5/13(c) 157 156 HBI Branded Apparel Ltd., Inc. Tranche 2 9.110% due 3/15/14(c) 200 201 Totes Isotoner Corp. Tranche 2 11.360% due 1/16/14(c) 500 490 -------- 847 -------- APPLICATION SOFTWARE--0.2% Reynolds & Reynolds Co. (The) Tranche FL 7.360% due 10/24/12(c) 310 296 -------- AUTO PARTS & EQUIPMENT--0.5% Mark IV Industries, Inc. Tranche 2 11.100% due 12/19/11(c) 175 165 See Notes to Financial Statements 69 PHOENIX MULTI-SECTOR FIXED INCOME FUND PAR VALUE VALUE (000) (000) -------- -------- AUTO PARTS & EQUIPMENT--CONTINUED Mark IV Industries, Inc. Tranche B 7.862% due 6/21/11(c) $ 626 $ 603 -------- 768 -------- AUTOMOBILE MANUFACTURERS--0.6% Ford Motor Co. Tranche B 8.360% due 12/15/13(c) 374 363 General Motors Corp. Tranche B 7.745% due 11/29/13(c) 473 459 -------- 822 -------- AUTOMOTIVE RETAIL--0.2% Hertz Corp. Letter of Credit 7.110% due 12/21/12(c) 50 49 Hertz Corp. Tranche B 7.100% due 12/21/12(c) 238 234 -------- 283 -------- BROADCASTING & CABLE TV--0.5% Charter Communications Operating LLC Tranche 7.360% due 3/6/14(c) 744 722 -------- DATA PROCESSING & OUTSOURCED SERVICES--0.3% First Data Corp. Tranche B3 7.710% due 9/24/14(c) 500 485 -------- DEPARTMENT STORES--0.8% Neiman-Marcus Group, Inc. (The) Tranche 7.346% due 4/6/13(c) 1,213 1,192 -------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--0.1% ARAMARK Corp. Letter of Credit 7.360% due 1/26/14(c) 11 11 ARAMARK Corp. Tranche B 7.470% due 1/26/14(c) 158 155 -------- 166 -------- ELECTRICAL COMPONENTS & EQUIPMENT--0.2% Baldor Electric Co. Tranche 7.063% due 1/31/14(c) 252 249 -------- ELECTRONIC EQUIPMENT MANUFACTURERS--0.2% Metrologic Instruments, Inc. Tranche 8.070% due 12/21/13(c) 248 247 -------- ENVIRONMENTAL & FACILITIES SERVICES--0.2% Allied Waste North America, Inc. Letter of Credit A 7.071% due 3/28/14(c) 124 122 Allied Waste North America, Inc. Tranche B 7.170% due 3/28/14(c) 230 228 -------- 350 -------- GENERAL REVENUE--0.1% Wimar Opco LLC/Wimar Opco Finance Corp. Tranche B 7.610% due 1/3/12(c) 86 84 -------- PAR VALUE VALUE (000) (000) -------- -------- HEALTH CARE FACILITIES--0.4% HCA, Inc. Tranche B 7.610% due 11/16/13(c) $ 263 $ 259 Health Management Associates, Inc. Tranche B 7.110% due 2/28/14(c) 199 189 LifePoint Hospitals, Inc. Tranche B 7.165% due 4/15/12(c) 227 222 -------- 670 -------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS--0.6% NRG Energy, Inc. Letter of Credit 7.110% due 2/1/13(c) 669 658 NRG Energy, Inc. Tranche B1 7.110% due 2/1/13(c) 275 271 -------- 929 -------- INTEGRATED TELECOMMUNICATION SERVICES--0.3% NTELOS, Inc. Tranche B1 7.570% due 8/24/11(c) 460 456 -------- LEISURE FACILITIES--0.3% AMF Bowling Worldwide, Inc. Tranche B 8.208% due 5/17/13(c) 524 511 -------- OIL & GAS DRILLING--0.2% Hercules Offshore, Inc. Tranche 7.110% due 7/11/13(c) 250 246 -------- OIL & GAS EXPLORATION & PRODUCTION--0.3% Helix Energy Solutions Group, Inc. Tranche 7.661% due 7/1/13(c) 387 382 -------- PAPER PRODUCTS--1.4% Domtar, Inc. Tranche B 6.723% due 3/7/14(c) 270 261 Georgia-Pacific Corp. Tranche A 7.109% due 12/20/10(c) 394 385 Georgia-Pacific Corp. Tranche B1 7.110% due 12/20/12(c) 663 650 NewPage Corp. Tranche B 7.625% due 5/2/11(c) 802 798 -------- 2,094 -------- PUBLISHING--0.8% Idearc, Inc. Tranche B 7.360% due 11/17/14(c) 993 980 Tribune Co. Tranche B 8.360% due 5/17/14(c) 215 196 -------- 1,176 -------- PAR VALUE VALUE (000) (000) -------- -------- RESTAURANTS--0.2% Burger King Corp. Tranche B1 6.875% due 6/30/12(c) $ 375 $ 371 -------- SPECIALIZED FINANCE--0.9% Solar Capital Corp. Tranche U.S. 7.937% due 2/28/14(c) 1,426 1,401 -------- SPECIALTY CHEMICALS--0.1% JohnsonDiversey, Inc. Tranche B 7.860% due 12/16/11(c) 124 122 -------- TRADING COMPANIES & DISTRIBUTORS--0.2% United Rentals, Inc. Letter of Credit 7.320% due 2/14/11 76 75 United Rentals, Inc. Tranche B 7.720% due 2/14/11(c) 167 165 -------- 240 -------- WIRELESS TELECOMMUNICATION SERVICES--0.4% Cricket Communications, Inc. Tranche B1 8.117% due 6/16/13(c) 617 610 - ---------------------------------------------------------------------------- TOTAL DOMESTIC LOAN AGREEMENTS (IDENTIFIED COST $16,204) 15,931 - ---------------------------------------------------------------------------- FOREIGN LOAN AGREEMENTS--0.4% GERMANY--0.4% Fresenius Medical Care AG & Co. KGaA Tranche B 6.745% due 3/31/13(c) 676 649 - ---------------------------------------------------------------------------- TOTAL FOREIGN LOAN AGREEMENTS (IDENTIFIED COST $676) 649 - ---------------------------------------------------------------------------- FOREIGN CREDIT LINKED NOTES--0.2% INDONESIA--0.2% Republic of Indonesia (Citigroup, Inc.) 11.867% due 6/15/09 380 348 - ---------------------------------------------------------------------------- TOTAL FOREIGN CREDIT LINKED NOTES (IDENTIFIED COST $352) 348 - ---------------------------------------------------------------------------- SHARES -------- DOMESTIC CONVERTIBLE PREFERRED STOCKS--0.2% DIVERSIFIED METALS & MINING--0.2% Vale Capital Ltd. 4,000 $ 266 - ---------------------------------------------------------------------------- TOTAL DOMESTIC CONVERTIBLE PREFERRED STOCKS (IDENTIFIED COST $200) 266 - ---------------------------------------------------------------------------- See Notes to Financial Statements 70 PHOENIX MULTI-SECTOR FIXED INCOME FUND VALUE SHARES (000) -------- -------- DOMESTIC COMMON STOCKS--0.0% INTEGRATED TELECOMMUNICATION SERVICES--0.0% AT&T Latin America Corp. Class A(r) 137,550 $ 2 - ---------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $605) 2 - ---------------------------------------------------------------------------- EXCHANGE TRADED FUNDS--1.8% DIAMONDS(R) Trust Series I 5,740 797 iShares MSCI EAFE(R) Index Fund 4,750 392 iShares S&P 500(R) Index Fund 5,000 765 iShares S&P Midcap 400(R) 8,500 749 - ---------------------------------------------------------------------------- TOTAL EXCHANGE TRADED FUNDS (IDENTIFIED COST $2,692) 2,703 - ---------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--98.8% (IDENTIFIED COST $146,167) 146,374 - ---------------------------------------------------------------------------- PAR VALUE VALUE (000) (000) -------- -------- SHORT-TERM INVESTMENTS--1.2% COMMERCIAL PAPER(s)--1.2% Govco, Inc. 5.100% due 10/1/07 $1,820 $ 1,820 - ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $1,820) 1,820 - ---------------------------------------------------------------------------- TOTAL INVESTMENTS--100.0% (IDENTIFIED COST $147,987) 148,194(a) Other assets and liabilities, net--(0.0)% 146 -------- NET ASSETS--100.0% $148,340 ======== At September 30, 2007, the Fund had entered into forward currency contracts as follows (reported in 000's): Unrealized Contract In Exchange Settlement Appreciation to Receive for Date Value (Depreciation) ---------- ----------- ---------- ------- -------------- 158,046 JPY 1,400 USD 11/30/07 1,387 (13) See the Glossary starting on page 2. (a) Federal Income Tax Information (reported in 000's): Net unrealized depreciation of investment securities is comprised of gross appreciation of $1,777 and gross depreciation of $1,873 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $148,290. (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 September 30, 2007, these securities amounted to a value of $30,034 (reported in 000's) or 20.2% of net assets. (c) Variable or step coupon security; interest rate shown reflects the rate currently in effect. (d) A security is considered to be foreign if the security is issued in a foreign country. The country of risk, noted in the header, is determined based on criteria described in Note 2G, "Foreign security country determination" in the Notes to Financial Statements. (e) Regulation S security. Security is offered and sold outside of the United States, therefore, it is exempt from registration with the SEC under rules 903 and 904 of the Securities Act of 1933. (f) Par value represents Australian Dollar. (g) Par value represents Brazilian Real. (h) Par value represents British Pound. (i) Par value represents Canadian Dollar. (j) Par value represents Colombian Peso. (k) Par value represents Euro. (l) Par value represents New Zealand Dollar. (m) Par value represents Mexican Peso. (n) Par value represents Norwegian Krone. (o) Par value represents Swedish Krona. (p) Par value represents Turkish Lira. (q) Illiquid and restricted security. At September 30, 2007, this security amounted to a value of $71 (reported in 000's) or 0% of the net assets. For acquisition information, see Note 7 "Illiquid and Restricted Securities" in the Notes to Financial Statements. (r) Non-income producing. (s) The rate shown is the discount rate. See Notes to Financial Statements 71 PHOENIX INTERNATIONAL STRATEGIES FUND SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 VALUE SHARES (000) -------- -------- FOREIGN COMMON STOCKS(c)--98.3% AUSTRALIA--6.4% Ausenco Ltd. (Construction & Engineering) 1,620 $ 19 AXA Asia Pacific Holdings Ltd. (Life & Health Insurance) 69,764 483 Bradken Ltd. (Construction & Farm Machinery & Heavy Trucks) 3,751 35 Caltex Australia Ltd. (Oil & Gas Refining & Marketing) 3,279 68 Centennial Coal Co. Ltd. (Coal & Consumable Fuels) 6,256 21 Commonwealth Bank of Australia (Diversified Banks) 5,174 259 Leighton Holdings Ltd. (Construction & Engineering) 15,144 692 McPherson's Ltd. (Personal Products) 10,878 34 Orica Ltd. (Diversified Chemicals) 16,095 430 Perilya Ltd. (Gold) 4,095 14 Qantas Airways Ltd. (Airlines) 284,933 1,411 QBE Insurance Group Ltd. (Property & Casualty Insurance) 19,500 585 Rio Tinto Ltd. (Diversified Metals & Mining) 8,549 821 Sally Malay Mining Ltd. (Diversified Metals & Mining) 4,768 21 Santos Ltd. (Oil & Gas Exploration & Production) 98,897 1,321 Tattersall's Ltd. (Casinos & Gaming) 24,173 85 Woodside Petroleum Ltd. (Oil & Gas Exploration & Production) 9,710 432 -------- 6,731 -------- AUSTRIA--0.6% OMV AG (Integrated Oil & Gas) 4,508 301 Voestalpine AG (Steel) 3,919 339 -------- 640 -------- BELGIUM--2.7% Belgacom SA (Integrated Telecommunication Services) 5,000 232 Delhaize Group (Food Retail) 10,552 1,011 Dexia SA (Diversified Banks) 16,339 495 Fortis BB (Other Diversified Financial Services)(e) 6,396 188 Fortis NA (Other Diversified Financial Services)(d) 30,738 905 -------- 2,831 -------- VALUE SHARES (000) -------- -------- CANADA--1.7% Canadian Imperial Bank of Commerce (Diversified Banks) 2,000 $ 190 CGI Group, Inc. Class A (IT Consulting & Other Services)(b) 4,700 54 Hammond Power Solutions, Inc. (Electrical Components & Equipment)(b) 2,200 29 Jean Coutu Group PJC, Inc.(The) Class A (Drug Retail) 3,900 52 Magna International, Inc. Class A (Auto Parts & Equipment) 1,000 96 Sherritt International Corp. (Diversified Metals & Mining) 7,500 120 Teck Cominco Ltd. Class B (Gold) 26,600 1,269 -------- 1,810 -------- CHINA--0.7% C&G Industrial Holdings Ltd. (Textiles) 58,500 27 Industrial & Commercial Bank of China (Diversified Banks) 843,000 591 Kazakhmys plc (Diversified Metals & Mining) 4,773 137 Truly International Holdings Ltd. (Electronic Equipment Manufacturers) 10,000 27 -------- 782 -------- DENMARK--0.7% D/S Norden (Marine) 6,780 724 FINLAND--1.6% Fortum Oyj (Electric Utilities) 10,600 389 Metso Oyj (Industrial Machinery) 4,837 333 Nokia Oyj (Communications Equipment) 22,500 856 Outokumpu Oyi (Steel) 3,796 136 -------- 1,714 -------- FRANCE--9.4% Air France - KLM (Airlines) 1,811 67 Alstom (Heavy Electrical Equipment) 2,151 437 BNP Paribas SA (Diversified Banks) 17,707 1,938 Bouygues SA (Wireless Telecommunication Services) 3,600 310 Capgemini SA (IT Consulting & Other Services) 8,408 518 Carrefour SA (Hypermarkets & Super Centers) 5,757 403 VALUE SHARES (000) -------- -------- FRANCE--CONTINUED Compagnie Generale des Etablissements Michelin Class B (Tires & Rubber) 3,056 $ 411 Credit Agricole SA (Diversified Banks) 1,652 64 France Telecom SA (Integrated Telecommunication Services) 2,505 84 LVMH Moet Hennessy Louis Vuitton SA (Apparel, Accessories & Luxury Goods) 4,174 500 Nexans SA (Electrical Components & Equipment) 751 124 PPR (Department Stores) 1,345 253 Publicis Groupe (Advertising) 9,538 392 Rallye SA (Specialty Stores) 297 21 Recylex SA (Diversified Metals & Mining)(b) 1,497 56 Sanofi-aventis (Pharmaceuticals) 5,800 491 Societe Generale (Diversified Banks) 10,915 1,832 Technip SA (Oil & Gas Equipment & Services) 6,075 543 Total SA (Integrated Oil & Gas) 10,900 886 Vivendi Universal SA (Movies & Entertainment) 10,683 451 -------- 9,781 -------- GERMANY--10.3% Allianz AG Registered Shares (Multi-line Insurance) 2,800 654 Arcandor AG (Department Stores)(b) 11,100 372 Commerzbank AG (Diversified Banks) 6,982 283 Daimler AG Registered Shares (Automobile Manufacturers) 6,600 665 Deutsche Bank AG Registered Shares (Diversified Capital Markets) 5,000 644 Deutsche Lufthansa AG Registered Shares (Airlines) 36,239 1,042 E.ON AG (Electric Utilities) 8,752 1,618 GEA Group AG (Industrial Machinery)(b) 9,217 324 Kloeckner & Co. AG (Trading Companies & Distributors) 820 57 MAN AG (Industrial Machinery) 9,292 1,352 MTU Aero Engines Holdings AG (Aerospace & Defense) 1,138 69 Muenchener Rueckversicherungs-Gesellschaft AG Registered Shares (Reinsurance) 3,704 712 Norddeutsche Affinerie AG (Diversified Metals & Mining) 2,425 107 Salzgitter AG (Steel) 5,479 1,076 Siemens AG (Industrial Conglomerates) 3,600 495 ThyssenKrupp AG (Steel) 17,313 1,103 See Notes to Financial Statements 72 PHOENIX INTERNATIONAL STRATEGIES FUND VALUE SHARES (000) -------- -------- GERMANY--CONTINUED United Internet AG Registered Shares (Internet Software & Services) 4,498 $ 101 Volkswagen AG (Automobile Manufacturers) 267 60 Wincor Nixdorf AG (Computer Hardware) 832 69 -------- 10,803 -------- GREECE--0.5% Alpha Bank AE (Diversified Banks) 15,400 537 HONG KONG--3.6% China Mobile Ltd. (Wireless Telecommunication Services) 48,000 786 Cheung Kong Holdings Ltd. (Real Estate Management & Development) 42,000 693 Chun Wo Holdings Ltd. (Construction & Engineering) 94,000 21 Guangdong Investments Ltd. (Industrial Conglomerates) 606,000 416 Hang Lung Properties Ltd. (Real Estate Management & Development) 143,000 640 Regal Hotels International Holdings Ltd. (Hotels, Resorts & Cruise Lines) 716,000 54 Sinolink Worldwide Holdings (Oil & Gas Storage & Transportation) 96,000 31 Sun Hung Kai Properties Ltd. (Real Estate Management & Development) 31,000 522 Television Broadcasts Ltd. (Broadcasting & Cable TV) 57,000 342 VTech Holdings Ltd. (Communications Equipment) 29,998 222 -------- 3,727 -------- INDIA--0.2% Infosys Technologies Ltd. Sponsored ADR (IT Consulting & Other Services) 4,400 213 IRELAND--0.3% Experian Group Ltd. (Diversified Commercial & Professional Services) 30,270 320 ISRAEL--0.1% Partner Communications Co. Ltd. ADR (Wireless Telecommunication Services) 5,300 88 ITALY--1.7% Banca Popolare dell'Emilia Romagna Scrl (Regional Banks) 2,095 48 ENI S.p.A. (Integrated Oil & Gas) 19,800 734 Fiat S.p.A. (Automobile Manufacturers) 15,979 483 Indesit Co. S.p.A. (Household Appliances) 3,705 64 VALUE SHARES (000) -------- -------- ITALY--CONTINUED UniCredito Italiano S.p.A. (Diversified Banks) 51,700 $ 442 -------- 1,771 -------- JAPAN--17.6% Aisin Seiko Co. Ltd. (Auto Parts & Equipment) 600 24 Asahi Pretec Corp. (Environmental & Facilities Services) 700 23 Aucnet, Inc. (Education Services) 1,000 20 Bank of Yokohama Ltd. (The) (Regional Banks) 31,000 214 Brother Industries Ltd. (Office Electronics) 19,000 243 Chiba Bank Ltd. (The) (Regional Banks) 3,000 23 Cosmo Oil Co. Ltd. (Oil & Gas Refining & Marketing) 48,000 229 Cosmos Initia Co. Ltd. (Real Estate Management & Development) 2,000 8 Create SD Co. Ltd. (Drug Retail) 1,500 29 East Japan Railway Co. (Railroads) 66 521 FANUC Ltd. (Industrial Machinery) 5,400 551 Fuji Machine Manufacturing Co. Ltd. (Industrial Machinery) 400 8 FUJIFILM Holdings Corp. (Photographic Products) 13,900 643 Fujitsu Ltd. (Computer Hardware) 41,000 290 Heiwa Corp. (Leisure Products) 1,400 16 Hudson Soft Co. Ltd. (Leisure Products)(b) 900 11 Ibiden Co. Ltd. (Electronic Equipment Manufacturers) 4,100 345 Inpex Holdings, Inc. (Oil & Gas Exploration & Production) 47 483 Isetan Co. Ltd. (Department Stores) 27,200 367 JFE Shoji Holdings, Inc. (Trading Companies & Distributors) 9,000 62 Juki Corp. (Household Appliances) 8,000 76 Kao Corp. (Household Products) 19,000 567 Kosaido Co. Ltd. (Commercial Printing) 2,000 14 Kyoei Steel Ltd. (Steel) 900 28 Leopalace21 Corp. (Real Estate Management & Development) 9,500 312 Makita Corp. (Household Appliances) 7,400 325 Marubeni Corp. (Trading Companies & Distributors) 85,000 780 Mitsubishi Corp. (Trading Companies & Distributors) 19,500 618 VALUE SHARES (000) -------- -------- JAPAN--CONTINUED Mitsubishi UFJ Financial Group, Inc. (Diversified Banks)(g) 34 $ 305 Mitsui Fudosan Co. Ltd. (Real Estate Management & Development) 25,000 694 Mitsumi Electric Co. Ltd. (Computer Storage & Peripherals) 13,100 535 Murata Manufacturing Co. Ltd. (Electronic Equipment Manufacturers) 8,700 627 Nikon Corp. (Photographic Products) 13,000 447 Nintendo Co. Ltd. (Home Entertainment Software) 3,600 1,874 Nippon Electric Glass Co. Ltd. (Electronic Equipment Manufacturers) 37,000 596 Nippon Game Card Corp. (Leisure Products) 9 14 Nippon Mining Holdings, Inc. (Oil & Gas Refining & Marketing) 38,500 387 Nippon Oil Corp. (Oil & Gas Refining & Marketing) 37,000 344 Nisshin Steel Co. Ltd. (Steel) 37,000 167 Nissin Kogyo Co. Ltd. (Auto Parts & Equipment) 3,600 104 Nomura Holdings, Inc. (Investment Banking & Brokerage) 19,200 322 Nomura Research Institute Ltd. (IT Consulting & Other Services) 6,300 214 Pacific Management Corp. (Real Estate Management & Development) 60 75 Seiko Holdings Corp. (Apparel, Accessories & Luxury Goods) 6,000 35 Shin-Etsu Chemical Co. Ltd. (Diversified Chemicals) 4,000 277 Sojitz Corp. (Trading Companies & Distributors) 154,900 674 Sumco Corp. (Semiconductors) 14,100 574 Sumikin Bussan Corp. (Trading Companies & Distributors) 5,000 19 Sumitomo Corp. (Trading Companies & Distributors) 35,500 686 Sumitomo Metal Industries Ltd. (Steel) 119,000 694 Sumitomo Metal Mining Co. Ltd. (Diversified Metals & Mining) 13,000 316 Sumitomo Trust & Banking Co. Ltd. (The) (Diversified Banks) 31,000 235 Tabuchi Electric Co. Ltd. (Electrical Components & Equipment)(b) 4,000 12 Tohto Suisan Co. Ltd. (Food Distributors) 5,000 12 See Notes to Financial Statements 73 PHOENIX INTERNATIONAL STRATEGIES FUND VALUE SHARES (000) -------- -------- JAPAN--CONTINUED Toshiba Plant Systems & Services Corp. (Construction & Engineering) 5,000 $ 49 Toyo Kohan Co. Ltd. (Steel) 3,000 19 Toyota Motor Corp. (Automobile Manufacturers) 10,200 602 Victor Co. of Japan Ltd. (Consumer Electronics)(b) 9,000 20 Yamaguchi Financial Group, Inc. (Regional Banks) 40 --(h) Yamaha Motor Co. Ltd. (Motorcycle Manufacturers) 19,600 500 Yamato Kogyo Co. Ltd. (Steel) 3,100 149 -------- 18,408 -------- LUXEMBOURG--0.7% ArcelorMittal (Steel) 9,706 766 MEXICO--0.2% Grupo Mexico S.A.B. de C.V. Series B (Diversified Metals & Mining) 14,560 104 Telefonos de Mexico S.A.B. de C.V. Series L (Integrated Telecommunication Services) 59,600 98 -------- 202 -------- NETHERLANDS--5.5% ASML Holding N.V. (Semiconductor Equipment)(b) 17,100 567 Draka Holding N.V. (Electrical Components & Equipment) 2,305 103 Heineken N.V. (Brewers) 20,265 1,330 Hunter Douglas N.V. (Home Furnishings) 1,450 130 ING Groep N.V. (Other Diversified Financial Services) 53,213 2,362 Koninklijke Ahold N.V. (Food Retail)(b) 10,070 152 Koninklijke KPN N.V. (Integrated Telecommunication Services) 16,100 280 OCE N.V. (Office Electronics)(i) 103 2 OCE N.V. (Office Electronics)(j) 2,300 49 Randstad Holding N.V. (Human Resources & Employment Services) 5,200 281 USG People NV (Human Resources & Employment Services) 1,985 57 Wolters Kluwer N.V. (Publishing) 15,800 469 -------- 5,782 -------- NEW ZEALAND--0.1% Fletcher Building Ltd. (Construction Materials) 5,455 52 NORWAY--0.0% Belships ASA (Marine) 1,000 5 RUSSIA--3.2% LUKOIL Sponsored ADR (Integrated Oil & Gas) 20,314 1,692 VALUE SHARES (000) -------- -------- RUSSIA--CONTINUED Mobile TeleSystems OJSC Sponsored ADR (Wireless Telecommunication Services) 15,700 $ 1,088 Novolipetsk Steel GDR Registered Shares (Steel) 2,282 77 Vimpel-Communications Sponsored ADR (Wireless Telecommunication Services) 8,400 227 VTB Bank OJSC Sponsored GDR (Diversified Banks)(b) 29,239 260 -------- 3,344 -------- SINGAPORE--1.0% CapitaLand Ltd. (Real Estate Management & Development) 67,000 368 Jardine Cycle & Carriage Ltd. (Distributors) 14,000 174 Neptune Orient Lines Ltd. (Marine) 15,000 53 Rotary Engineering Ltd. (Construction & Engineering) 20,000 19 Singapore Petroleum Co. Ltd. (Oil & Gas Refining & Marketing) 8,000 37 Swiber Holdings Ltd. (Oil & Gas Equipment & Services)(b) 6,000 14 United Overseas Bank Ltd. (Diversified Banks) 25,000 372 -------- 1,037 -------- SOUTH KOREA--1.0% Hanwha Chemical Corp. (Diversified Chemicals) 2,230 59 Hanwha Securities Co. (Investment Banking & Brokerage) 4,420 86 Honam Petrochemical Corp. (Fertilizers & Agricultural Chemicals) 711 117 KT Corp. (Integrated Telecommunication Services) 13,100 658 Mirae Asset Securities Co. Ltd. (Investment Banking & Brokerage) 1,459 140 POSCO (Steel) 23 17 -------- 1,077 -------- SPAIN--1.5% Banco Bilbao Vizcaya Argentaria S.A. (Diversified Banks) 43,500 1,020 Telefonica SA (Integrated Telecommunication Services) 17,600 492 -------- 1,512 -------- SWEDEN--3.3% Atlas Copco AB Class A (Industrial Machinery) 10,000 173 Boliden AB (Diversified Metals & Mining) 7,350 157 Electrolux AB Series B (Household Appliances) 9,766 207 VALUE SHARES (000) -------- -------- SWEDEN--CONTINUED JM AB (Construction & Engineering) 5,068 $ 122 NCC AB Class B (Construction & Engineering) 1,600 40 Skanska AB Class B (Construction & Engineering) 18,300 363 Swedbank AB Class A (Diversified Banks) 11,738 393 Telefonaktiebolaget LM Ericsson Class B (Communications Equipment) 122,900 492 Volvo AB Class B (Construction & Farm Machinery & Heavy Trucks) 83,613 1,456 -------- 3,403 -------- SWITZERLAND--5.6% Actelion Ltd. (Biotechnology)(b) 1,170 65 Credit Suisse Group Registered Shares (Diversified Capital Markets) 6,500 432 Geberit AG (Building Products) 440 57 Georg Fisher AG Registered Shares (Industrial Machinery)(b) 212 146 Holcim Ltd. Registered Shares (Construction Materials) 4,500 497 Novartis AG Registered Shares (Pharmaceuticals) 16,400 905 Roche Holding AG Registered Shares (Pharmaceuticals) 5,446 987 Swatch Group AG (The) (Apparel, Accessories & Luxury Goods) 394 129 UBS AG Registered Shares (Diversified Capital Markets) 8,200 441 Zurich Financial Services AG Registered Shares (Multi-line Insurance) 7,223 2,167 -------- 5,826 -------- TAIWAN--0.2% Taiwan Semiconductor Manufacturing Co. Ltd. Sponsored ADR (Semiconductors) 23,140 234 Taiwan Surface Mounting Technology Co. Ltd. (Electronic Equipment Manufacturers) 8,050 18 -------- 252 -------- THAILAND--0.2% CalComp Electronics Thailand PCL (Electronic Equipment Manufacturers) 308,000 102 IRPC PCL (Fertilizers & Agricultural Chemicals) 269,600 54 -------- 156 -------- TURKEY--0.2% Dogan Sirketler Grubu Holdings A.S. (Industrial Machinery)(b) 74,488 163 See Notes to Financial Statements 74 PHOENIX INTERNATIONAL STRATEGIES FUND VALUE SHARES (000) -------- -------- TURKEY--CONTINUED Tupras-Turkiye Petro RafinerileriA.S. (Oil & Gas Refining & Marketing) 2,910 $ 77 -------- 240 -------- UNITED KINGDOM--14.2% Amec plc (Construction & Engineering) 4,171 63 Antofagasta plc (Diversified Metals & Mining) 137,873 2,150 AstraZeneca plc (Pharmaceuticals) 30,856 1,546 Aviva plc (Multi-line Insurance) 27,200 409 BAE Systems plc (Aerospace & Defense) 57,000 575 Barclays plc (Diversified Banks) 41,600 507 British Airways plc (Airlines)(b) 75,938 595 British Sky Broadcasting Group plc (Broadcasting & Cable TV) 44,000 626 BT Group plc (Integrated Telecommunication Services) 282,723 1,776 Catlin Group Ltd. (Property & Casualty Insurance) 1,256 12 Centrica plc (Multi-Utilities) 27,133 211 easyJet plc (Airlines)(b) 22,200 238 Emap plc (Publishing) 20,500 369 GlaxoSmithKline plc (Pharmaceuticals) 33,400 886 Imperial Tobacco Group plc (Tobacco) 1,514 69 Invesco plc (Asset Management & Custody Banks) 19,700 267 J Sainsbury plc (Food Retail) 12,408 147 Johnson Matthey plc (Specialty Chemicals) 7,354 251 KCOM Group plc (Integrated Telecommunication Services) 11,083 15 Legal & General Group plc (Life & Health Insurance) 187,220 512 Micro Focus International plc (Application Software) 8,900 54 National Grid plc (Multi-Utilities) 30,185 484 VALUE SHARES (000) -------- -------- UNITED KINGDOM--CONTINUED NETeller plc (Education Services)(b) 14,300 $ 22 Next plc (Department Stores) 8,018 322 Petrofac Ltd. (Oil & Gas Equipment & Services) 4,762 45 Rolls-Royce Group plc (Aerospace & Defense)(b) 48,290 516 Royal Bank of Scotland Group plc (Diversified Banks) 12,892 138 Scottish & Newcastle plc (Brewers) 31,500 394 Shire plc (Pharmaceuticals) 4,461 110 Smiths Group plc (Industrial Conglomerates) 17,267 378 Sportingbet plc (Casinos & Gaming)(b) 16,121 14 SVG Capital plc (Asset Management & Custody Banks) 933 16 Tate & Lyle plc (Packaged Foods & Meats) 573 5 THUS Group plc (Alternative Carriers)(b) 16,468 52 Vodafone Group plc (Wireless Telecommunication Services) 190,979 690 Wolseley plc (Trading Companies & Distributors) 9,097 154 Yell Group plc (Publishing) 22,300 196 -------- 14,814 -------- UNITED STATES--3.3% Royal Dutch Shell plc Class A (Integrated Oil & Gas)(d) 70,999 2,932 Royal Dutch Shell plc Class A (Integrated Oil & Gas)(f) 13,100 540 -------- 3,472 - ---------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $80,750) 102,820 - ---------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--98.3% (IDENTIFIED COST $80,750) 102,820 - ---------------------------------------------------------------------------- TOTAL INVESTMENTS--98.3% (IDENTIFIED COST $80,750) 102,820(a) Other assets and liabilities, net--1.7% 1,784 -------- NET ASSETS--100.0% $104,604 ======== (a) Federal Income Tax Information (reported in 000's): Net unrealized appreciation of investment securities is comprised of gross appreciation of $24,164 and gross depreciation of $2,155 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $80,811. (b) Non-income producing. (c) A security is considered to be foreign if the security is issued in a foreign country. The country of risk, noted in the header, is determined based on criteria described in Note 2G, "Foreign Security Country Determination" in the Notes to Financial Statements. (d) Shares traded on Amsterdam Exchange. (e) Shares traded on Brussels Exchange. (f) Shares traded on London Exchange. (g) Illiquid. Security valued at fair value as determined in good faith by or under the direction of the Trustees. At September 30, 2007, these securities amounted to a value of $305 (reported in 000's) or 0% of net assets. (h) Value less than $1,000. (i) Shares traded on Frankfurt Exchange. (j) Shares traded on China Exchange. See Notes to Financial Statements 75 PHOENIX WORLDWIDE STRATEGIES FUND SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 VALUE SHARES (000) -------- -------- DOMESTIC COMMON STOCKS--28.4% UNITED STATES--28.4% 3M Co. (Industrial Conglomerates) 800 $ 75 Abbott Laboratories (Pharmaceuticals) 1,570 84 Aeropostale, Inc. (Apparel Retail)(b)(d) 1,500 29 Aetna, Inc. (Managed Health Care) 4,100 222 AFLAC, Inc. (Life & Health Insurance) 2,670 152 AGCO Corp. (Construction & Farm Machinery & Heavy Trucks)(b) 1,610 82 Agilent Technologies, Inc. (Electronic Equipment Manufacturers)(b)(d) 4,070 150 AK Steel Holding Corp. (Steel)(b) 2,460 108 Albemarle Corp. (Specialty Chemicals) 620 27 Allstate Corp. (The) (Property & Casualty Insurance) 7,100 406 Altria Group, Inc. (Tobacco) 970 67 American International Group, Inc. (Multi-line Insurance) 8,440 571 AmeriCredit Corp. (Consumer Finance)(b)(d) 1,650 29 Amgen, Inc. (Biotechnology)(b) 610 34 Amkor Technology, Inc. (Semiconductors)(b)(d) 3,440 40 AMR Corp. (Airlines)(b)(d) 2,380 53 Anheuser-Busch Cos., Inc. (Brewers) 2,130 106 Annaly Mortgage Management, Inc. (Mortgage REITs) 1,900 30 AON Corp. (Insurance Brokers)(d) 1,750 78 Applied Materials, Inc. (Semiconductor Equipment)(d) 4,600 95 Arrow Electronics, Inc. (Technology Distributors)(b) 500 21 Aspen Technology, Inc. (Application Software)(b)(d) 3,800 54 AT&T, Inc. (Integrated Telecommunication Services) 21,059 891 Automatic Data Processing, Inc. (Data Processing & Outsourced Services) 3,400 156 Bank of America Corp. (Other Diversified Financial Services) 20,990 1,055 Bank of Hawaii Corp. (Regional Banks)(d) 400 21 Bank of New York Mellon Corp. (The) (Asset Management & Custody Banks) 4,913 217 Baxter International, Inc. (Health Care Equipment) 3,420 192 VALUE SHARES (000) -------- -------- UNITED STATES--CONTINUED Big Lots, Inc. (General Merchandise Stores)(b)(d) 2,430 $ 72 Biogen Idec, Inc. (Biotechnology)(b) 2,050 136 BJ's Wholesale Club, Inc. (Hypermarkets & Super Centers)(b) 810 27 BMC Software, Inc. (Systems Software)(b) 1,990 62 Boeing Co. (The) (Aerospace & Defense)(d) 4,030 423 Brandywine Realty Trust (Office REITs)(d) 2,060 52 CapitalSource, Inc. (Mortgage REITs)(d) 2,070 42 Cardinal Health, Inc. (Health Care Distributors) 3,370 211 CBS Corp. Class B (Broadcasting & Cable TV) 7,870 248 Cephalon, Inc. (Biotechnology)(b)(d) 380 28 Chevron Corp. (Integrated Oil & Gas) 5,470 512 Chubb Corp. (The) (Property & Casualty Insurance) 1,310 70 CIGNA Corp. (Managed Health Care) 2,660 142 Cincinnati Financial Corp. (Property & Casualty Insurance) 1,210 52 Cisco Systems, Inc. (Communications Equipment)(b) 22,830 756 Citigroup, Inc. (Other Diversified Financial Services) 11,700 546 Clorox Co. (The) (Household Products)(d) 3,190 195 Coca-Cola Co. (The) (Soft Drinks) 4,990 287 Comerica, Inc. (Diversified Banks)(d) 1,360 70 Computer Sciences Corp. (Data Processing & Outsourced Services)(b)(d) 1,820 102 ConAgra Foods, Inc. (Packaged Foods & Meats) 4,780 125 ConocoPhillips (Integrated Oil & Gas) 1,900 167 Constellation Energy Group, Inc. (Independent Power Producers & Energy Traders)(d) 2,120 182 Continental Airlines, Inc. Class B (Airlines)(b)(d) 770 25 Coventry Health Care, Inc. (Managed Health Care)(b) 610 38 Cummins, Inc. (Construction & Farm Machinery & Heavy Trucks) 260 33 VALUE SHARES (000) -------- -------- UNITED STATES--CONTINUED Donnelley (R.R.) & Sons Co. (Commercial Printing) 2,800 $ 102 Dover Corp. (Industrial Machinery) 820 42 Dow Chemical Co. (The) (Diversified Chemicals) 2,860 123 Dresser-Rand Group, Inc. (Oil & Gas Equipment & Services)(b) 1,520 65 Dun & Bradstreet Corp. (Diversified Commercial & Professional Services) 950 94 Eaton Corp. (Industrial Machinery) 3,000 297 eBay, Inc. (Internet Software & Services)(b) 4,650 181 Electronic Data Systems Corp. (Data Processing & Outsourced Services) 5,230 114 Emerson Electric Co. (Electrical Components & Equipment) 6,300 335 Emulex Corp. (Computer Storage & Peripherals)(b)(d) 4,100 79 Endo Pharmaceuticals Holdings, Inc. (Pharmaceuticals)(b) 1,850 57 ENSCO International, Inc. (Oil & Gas Drilling)(d) 600 34 Expedia, Inc. (Internet Retail)(b)(d) 1,730 55 Exxon Mobil Corp. (Integrated Oil & Gas) 18,100 1,675 Family Dollar Stores, Inc. (General Merchandise Stores)(d) 2,350 62 Federated Investors, Inc. Class B (Asset Management & Custody Banks)(d) 1,920 76 FelCor Lodging Trust, Inc. (Specialized REITs) 3,280 65 FirstEnergy Corp. (Electric Utilities) 5,420 343 Fiserv, Inc. (Data Processing & Outsourced Services)(b) 2,930 149 Forest Laboratories, Inc. (Pharmaceuticals)(b) 2,950 110 Franklin Resources, Inc. (Asset Management & Custody Banks) 1,100 140 Fuller (H.B.) Co. (Specialty Chemicals) 1,800 53 Gap, Inc. (The) (Apparel Retail) 6,150 113 Gardner Denver, Inc. (Industrial Machinery)(b) 1,090 42 General Dynamics Corp. (Aerospace & Defense) 1,030 87 General Electric Co. (Industrial Conglomerates) 2,650 110 General Mills, Inc. (Packaged Foods & Meats) 2,720 158 See Notes to Financial Statements 76 PHOENIX WORLDWIDE STRATEGIES FUND VALUE SHARES (000) -------- -------- UNITED STATES--CONTINUED General Motors Corp. (Automobile Manufacturers)(d) 2,300 $ 84 Global Industries Ltd. (Oil & Gas Equipment & Services)(b) 3,400 88 GrafTech International Ltd. (Electrical Components & Equipment)(b)(d) 1,340 24 Halliburton Co. (Oil & Gas Equipment & Services)(d) 7,420 285 Harley-Davidson, Inc. (Motorcycle Manufacturers)(d) 540 25 Hartford Financial Services Group, Inc. (The) (Multi-line Insurance) 400 37 Hasbro, Inc. (Leisure Products)(d) 1,120 31 Heinz (H.J.) Co. (Packaged Foods & Meats)(d) 2,930 135 Hewlett-Packard Co. (Computer Hardware) 11,960 595 Holly Corp. (Oil & Gas Refining & Marketing) 1,790 107 Honeywell International, Inc. (Aerospace & Defense) 3,750 223 IAC/InterActiveCorp. (Internet Retail)(b) 2,190 65 Integrated Device Technology, Inc. (Semiconductors)(b) 4,850 75 Intel Corp. (Semiconductors) 5,710 148 International Business Machines Corp. (Computer Hardware)(d) 7,390 871 International Rectifier Corp. (Semiconductors)(b)(d) 930 31 Intuit, Inc. (Application Software)(b) 750 23 Invitrogen Corp. (Life Sciences Tools & Services)(b) 800 65 Johnson & Johnson (Pharmaceuticals) 11,770 773 JPMorgan Chase & Co. (Other Diversified Financial Services) 14,840 680 KeyCorp (Regional Banks)(d) 2,720 88 Kimberly-Clark Corp. (Household Products)(d) 2,400 169 KLA-Tencor Corp. (Semiconductor Equipment)(d) 480 27 Kroger Co. (The) (Food Retail) 3,950 113 Lam Research Corp. (Semiconductor Equipment)(b) 1,030 55 Lear Corp. (Auto Parts & Equipment)(b) 3,860 124 Lexmark International, Inc. Class A (Computer Storage & Peripherals)(b)(d) 1,030 43 Lincoln National Corp. (Life & Health Insurance)(d) 3,420 226 Lockheed Martin Corp. (Aerospace & Defense) 2,890 313 Loews Corp. - Carolina Group (Tobacco) 3,220 265 Marathon Oil Corp. (Integrated Oil & Gas) 1,900 108 Masco Corp. (Building Products)(d) 3,570 83 VALUE SHARES (000) -------- -------- UNITED STATES--CONTINUED Massey Energy Co. (Coal & Consumable Fuels)(d) 4,110 $ 90 McAfee, Inc. (Systems Software)(b)(d) 850 30 McDonald's Corp. (Restaurants)(d) 8,070 440 McKesson Corp. (Health Care Distributors) 3,490 205 Medco Health Solutions, Inc. (Health Care Services)(b) 980 89 MEMC Electronic Materials, Inc. (Semiconductor Equipment)(b) 750 44 Merck & Co., Inc. (Pharmaceuticals) 11,690 604 Merrill Lynch & Co., Inc. (Investment Banking & Brokerage) 5,200 371 MetLife, Inc. (Life & Health Insurance) 7,450 519 Microsoft Corp. (Systems Software) 32,700 963 Morgan Stanley (Investment Banking & Brokerage) 2,120 134 National Oilwell Varco, Inc. (Oil & Gas Equipment & Services)(b) 1,750 253 NBTY, Inc. (Personal Products)(b) 1,700 69 Newell Rubbermaid, Inc. (Housewares & Specialties) 5,130 148 NIKE, Inc. Class B (Footwear) 3,280 192 Noble Energy, Inc. (Oil & Gas Exploration & Production) 380 27 Norfolk Southern Corp. (Railroads) 1,560 81 Northern Trust Corp. (Asset Management & Custody Banks) 2,380 158 Northrop Grumman Corp. (Aerospace & Defense) 1,790 140 Novellus Systems, Inc. (Semiconductor Equipment)(b)(d) 2,890 79 Nucor Corp. (Steel)(d) 300 18 NVIDIA Corp. (Semiconductors)(b) 3,860 140 Occidental Petroleum Corp. (Integrated Oil & Gas) 11,090 711 ON Semiconductor Corp. (Semiconductors)(b)(d) 3,700 46 Oracle Corp. (Systems Software)(b) 17,010 368 OSI Pharmaceuticals, Inc. (Biotechnology)(b)(d) 4,010 136 Packaging Corporation of America (Paper Packaging) 2,930 85 Parker Hannifin Corp. (Industrial Machinery) 1,330 149 Penney (J.C.) Co., Inc. (Department Stores) 400 25 Pepsi Bottling Group, Inc. (The) (Soft Drinks) 4,449 165 Pfizer, Inc. (Pharmaceuticals) 25,920 633 Philadelphia Consolidated Holding Co. (Property & Casualty Insurance)(b) 540 22 VALUE SHARES (000) -------- -------- UNITED STATES--CONTINUED Principal Financial Group, Inc. (The) (Life & Health Insurance)(d) 2,990 $ 189 Procter & Gamble Co. (The) (Household Products) 1,600 113 Prudential Financial, Inc. (Life & Health Insurance) 3,430 335 Public Service Enterprise Group, Inc. (Multi-Utilities) 3,020 266 Qwest Communications International, Inc. (Integrated Telecommunication Services)(b)(d) 16,780 154 RadioShack Corp. (Computer & Electronics Retail)(d) 850 18 Raytheon Co. (Aerospace & Defense)(d) 1,990 127 Regions Financial Corp. (Regional Banks) 3,250 96 SEI Investments Co. (Asset Management & Custody Banks) 2,810 77 Sherwin-Williams Co. (The) (Home Improvement Retail) 3,820 251 Sprint Nextel Corp. (Wireless Telecommunication Services)(d) 9,160 174 StanCorp Financial Group, Inc. (Life & Health Insurance) 480 24 Stanley Works (The) (Household Appliances)(d) 1,240 70 State Street Corp. (Asset Management & Custody Banks) 3,390 231 Sun Microsystems, Inc. (Computer Hardware)(b) 5,820 33 SunTrust Banks, Inc. (Regional Banks) 540 41 Symantec Corp. (Systems Software)(b) 8,810 171 Synovus Financial Corp.(Regional Banks) 1,360 38 TD Ameritrade Holding Corp. (Investment Banking & Brokerage)(b) 2,080 38 Terra Industries, Inc. (Fertilizers & Agricultural Chemicals)(b) 1,190 37 Texas Instruments, Inc. (Semiconductors) 6,630 243 Tidewater, Inc. (Oil & Gas Equipment & Services)(d) 1,560 98 Time Warner, Inc. (Movies & Entertainment) 17,070 313 Toro Co. (The) (Construction & Farm Machinery & Heavy Trucks)(d) 1,500 88 Travelers Cos., Inc. (The) (Property & Casualty Insurance) 6,220 313 Tyco Electronics Ltd. (Electronic Manufacturing Services) 4,870 173 Tyco International Ltd. (Industrial Conglomerates) 6,242 277 See Notes to Financial Statements 77 PHOENIX WORLDWIDE STRATEGIES FUND VALUE SHARES (000) -------- -------- UNITED STATES--CONTINUED United Parcel Service, Inc. Class B (Air Freight & Logistics) 540 $ 41 United States Steel Corp. (Steel)(d) 360 38 United Technologies Corp. (Aerospace & Defense) 6,920 557 UnitedHealth Group, Inc. (Managed Health Care) 6,640 322 Universal Corp. (Tobacco)(d) 680 33 Unum Group (Life & Health Insurance) 1,070 26 Valero Energy Corp. (Oil & Gas Refining & Marketing) 990 66 Verizon Communications, Inc. (Integrated Telecommunication Services) 4,690 208 VF Corp. (Apparel, Accessories & Luxury Goods) 1,100 89 Viacom, Inc. Class B (Movies & Entertainment)(b)(d) 7,680 299 Vishay Intertechnology, Inc. (Electronic Equipment Manufacturers)(b) 2,680 35 Wachovia Corp. (Diversified Banks) 3,580 180 Wal-Mart Stores, Inc. (Hypermarkets & Super Centers)(d) 5,890 257 Walt Disney Co. (The) (Movies & Entertainment) 11,650 401 WellPoint, Inc. (Managed Health Care)(b) 2,670 211 Wells Fargo & Co. (Diversified Banks) 12,470 444 WGL Holdings, Inc. (Gas Utilities)(d) 2,630 89 Whirlpool Corp. (Household Appliances)(d) 540 48 Wyeth (Pharmaceuticals) 1,810 81 Xerox Corp. (Office Electronics)(b)(d) 3,860 67 Yum! Brands, Inc. (Restaurants)(d) 5,200 176 - ---------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $28,666) 35,178 - ---------------------------------------------------------------------------- FOREIGN COMMON STOCKS(c)--70.4% AUSTRALIA--4.4% Ausenco Ltd. (Construction &Engineering) 1,109 13 AXA Asia Pacific Holdings Ltd. (Life & Health Insurance)(d) 61,771 427 Caltex Australia Ltd. (Oil & Gas Refining & Marketing) 10,704 224 Leighton Holdings Ltd. (Construction & Engineering)(d) 11,593 530 Minara Resources Ltd. (Diversified Metals & Mining)(d) 9,419 54 Orica Ltd. (Diversified Chemicals) 14,790 395 Qantas Airways Ltd. (Airlines) 264,504 1,310 VALUE SHARES (000) -------- -------- AUSTRALIA--CONTINUED QBE Insurance Group Ltd. (Property & Casualty Insurance) 17,900 $ 537 Rio Tinto Ltd. (Diversified Metals & Mining)(d) 7,058 678 Sally Malay Mining Ltd. (Diversified Metals & Mining)(d) 12,686 55 Santos Ltd. (Oil & Gas Exploration & Production) 54,611 729 Tattersall's Ltd. (Casinos & Gaming) 32,860 116 Woodside Petroleum Ltd. (Oil & Gas Exploration & Production) 8,580 382 Zinifex Ltd. (Diversified Metals & Mining) 3,467 54 -------- 5,504 -------- AUSTRIA--0.6% OMV AG (Integrated Oil & Gas) 3,402 227 Voestalpine AG (Steel) 6,214 537 -------- 764 -------- BELGIUM--2.0% Belgacom SA (Integrated Telecommunication Services) 4,000 186 Colruyt SA (Food Retail)(d) 187 39 Delhaize Group (Food Retail) 8,012 768 Dexia SA (Diversified Banks) 18,039 546 Fortis BB (Other Diversified Financial Services) 5,487 162 Fortis NA (Other Diversified Financial Services)(d) 17,410 513 InBev N.V. (Brewers)(d) 2,973 269 -------- 2,483 -------- CANADA--0.8% Allen-Vanguard Corp. (Specialty Chemicals)(b) 2,400 23 Canadian Imperial Bank of Commerce (Diversified Banks) 2,635 250 Churchill Corp (The) (Construction & Engineering)(b) 800 13 Empire Co. Ltd. (Food Retail) 600 30 Jean Coutu Group PJC, Inc.(The) Class A (Drug Retail) 3,200 43 Sherritt International Corp. (Diversified Metals & Mining) 4,500 72 Taseko Mines Ltd. (Gold)(b)(d) 11,100 58 Teck Cominco Ltd. Class B (Gold) 11,576 552 -------- 1,041 -------- CHINA--1.2% China Mobile Ltd. (Wireless Telecommunication Services) 41,000 671 Industrial & Commercial Bank of China (Diversified Banks) 741,000 520 Kazakhmys plc (Diversified Metals & Mining) 8,386 241 -------- 1,432 -------- VALUE SHARES (000) -------- -------- DENMARK--0.5% D/S Norden (Marine) 5,375 $ 574 FINLAND--1.0% Fortum Oyj (Electric Utilities) 8,000 294 Metso Oyj (Industrial Machinery 4,031 277 Nokia Oyj (Communications Equipment) 16,800 639 Ramirent Oyj (Consumer Finance) 1,192 26 -------- 1,236 -------- FRANCE--7.0% Air France - KLM (Airlines)(d) 20,411 750 Alstom (Heavy Electrical Equipment)(d) 1,963 399 BNP Paribas SA (Diversified Banks)(d) 14,240 1,558 Bouygues SA (Wireless Telecommunication Services)(d) 3,200 276 Capgemini SA (IT Consulting & Other Services)(d) 352 21 Carrefour SA (Hypermarkets & Super Centers)(d) 4,749 333 Compagnie Generale des Etablissements Michelin Class B (Tires & Rubber)(d) 2,669 359 Credit Agricole SA (Diversified Banks)(d) 7,388 285 France Telecom SA (Integrated Telecommunication Services) 7,467 250 LVMH Moet Hennessy Louis Vuitton SA (Apparel, Accessories & Luxury Goods)(d) 3,204 384 PPR (Department Stores) 1,137 214 Publicis Groupe (Advertising)(d) 8,164 336 Rallye SA (Specialty Stores) 291 21 Recylex SA (Diversified Metals & Mining)(b) 1,075 40 Sanofi-aventis (Pharmaceuticals)(d) 5,100 432 Societe Generale (Diversified Banks)(d) 7,581 1,272 Technip SA (Oil & Gas Equipment & Services)(d) 5,895 527 Total SA (Integrated Oil & Gas)(d) 9,000 732 Vivendi Universal SA (Movies & Entertainment)(d) 10,677 450 -------- 8,639 -------- GERMANY--7.6% Allianz AG Registered Shares (Multi-line Insurance) 2,400 561 Arcandor AG (Department Stores)(b) 8,200 275 Beiersdorf AG (Personal Products) 2,136 160 Commerzbank AG (Diversified Banks) 5,962 241 Daimler AG Registered Shares (Automobile Manufacturers) 6,557 660 Deutsche Bank AG Registered Shares (Diversified Capital Markets) 4,400 567 See Notes to Financial Statements 78 PHOENIX WORLDWIDE STRATEGIES FUND VALUE SHARES (000) -------- -------- GERMANY--CONTINUED Deutsche Lufthansa AG Registered Shares (Airlines) 41,132 $ 1,183 E.ON AG (Electric Utilities) 7,986 1,477 GEA Group AG (Industrial Machinery)(b) 6,832 240 MAN AG (Industrial Machinery) 3,161 460 MTU Aero Engines Holdings AG (Aerospace & Defense) 909 55 Norddeutsche Affinerie AG (Diversified Metals & Mining) 1,458 64 Salzgitter AG (Steel) 4,873 957 Siemens AG (Industrial Conglomerates) 3,100 426 ThyssenKrupp AG (Steel) 18,981 1,209 Volkswagen AG (Automobile Manufacturers) 3,888 879 -------- 9,414 -------- GREECE--0.4% Alpha Bank AE (Diversified Banks) 12,852 448 HONG KONG--2.1% Cheung Kong Holdings Ltd. (Real Estate Management & Development) 37,000 610 Chun Wo Holdings Ltd. (Construction & Engineering) 44,000 10 Guangdong Investments Ltd. (Industrial Conglomerates) 592,000 406 Hang Lung Properties Ltd. (Real Estate Management & Development) 110,000 493 Mirabell International Holdings (Apparel Retail) 20,000 13 Regal Hotels International Holdings Ltd. (Hotels, Resorts & Cruise Lines) 706,000 54 Sinolink Worldwide Holdings (Oil & Gas Storage & Transportation) 98,000 31 Sun Hung Kai Properties Ltd. (Real Estate Management & Development) 27,000 455 Television Broadcasts Ltd. (Broadcasting & Cable TV) 52,000 312 VTech Holdings Ltd. (Communications Equipment) 34,907 258 -------- 2,642 -------- INDIA--0.2% Infosys Technologies Ltd. Sponsored ADR (IT Consulting & Other Services)(d) 4,000 194 IRELAND--0.2% Experian Group Ltd. (Diversified Commercial & Professional Services) 26,620 282 ISRAEL--0.0% Partner Communications Co. Ltd. ADR (Wireless Telecommunication Services)(d) 1,900 31 VALUE SHARES (000) -------- -------- ITALY--1.6% Banca Popolare dell'Emilia Romagna s.c.r.l. (Regional Banks) 1,113 $ 25 Enel S.p.A. (Electric Utilities) 76,808 870 ENI S.p.A. (Integrated Oil & Gas) 17,984 667 Indesit Co. S.p.A. (Household Appliances) 3,033 52 UniCredito Italiano S.p.A. (Diversified Banks) 37,655 322 -------- 1,936 -------- JAPAN--12.5% Argo 21 Corp. (IT Consulting & Other Services) 7,200 85 Asunaro Aoki Construction Co. Ltd. (Construction & Engineering) 6,000 33 Aucnet, Inc. (Education Services) 600 12 Bank of Yokohama Ltd. (The) (Regional Banks)(d) 27,000 186 Brother Industries Ltd. (Office Electronics)(d) 9,000 115 Cosmo Oil Co. Ltd. (Oil & Gas Refining & Marketing)(d) 76,000 363 Cosmos Initia Co. Ltd. (Real Estate Management & Development) 3,000 13 Create SD Co. Ltd. (Drug Retail) 1,600 31 East Japan Railway Co. (Railroads)(d) 57 450 Elpida Memory Inc (Semiconductors)(b)(d) 2,200 81 FANUC Ltd. (IndustrialMachinery) 4,600 469 FUJIFILM Holdings Corp. (Photographic Products)(d) 8,200 379 Fujitsu Ltd. (Computer Hardware)(d) 36,000 254 Heiwa Corp. (Leisure Products) 1,400 16 Hino Motors Ltd. (Construction & Farm Machinery & Heavy Trucks)(d) 12,000 92 I B Daiwa Corp. (Industrial Machinery)(b) 43,000 14 Ibiden Co. Ltd. (Electronic Equipment Manufacturers)(d) 3,500 295 Infocom Corp. (IT Consulting & Other Services) 17 10 Inpex Holdings, Inc. (Oil & Gas Exploration & Production)(d) 40 411 Isetan Co. Ltd. (Department Stores)(d) 23,800 321 Juki Corp. (Household Appliances)(d) 6,000 57 Kanto Auto Works Ltd. (Auto Parts & Equipment) 1,700 23 Kao Corp. (Household Products)(d) 16,000 478 VALUE SHARES (000) -------- -------- JAPAN--CONTINUED Kohnan Shoji Co. Ltd. (General Merchandise Stores)(d) 2,500 $ 32 Kosaido Co. Ltd. (Commercial Printing) 9,300 65 Leopalace21 Corp. (Real Estate Management & Development)(d) 10,400 341 Makita Corp. (Household Appliances) 3,500 154 Marubeni Corp. (Trading Companies & Distributors)(d) 147,000 1,349 Marudai Food Co. Ltd. (Packaged Foods & Meats) 6,000 21 Matsuda Sangyo Co. Ltd. (Environmental & Facilities Services) 1,140 39 Mikuni Corp. (Auto Parts & Equipment) 5,000 18 Mitsubishi Corp. (Trading Companies & Distributors)(d) 16,600 526 Mitsubishi Electric Corp. (Heavy Electrical Equipment) 20,000 251 Mitsubishi UFJ Financial Group, Inc. (Diversified Banks)(f) 29 260 Mitsui Fudosan Co. Ltd. (Real Estate Management & Development) 22,000 611 Mitsumi Electric Co. Ltd. (Computer Storage & Peripherals) 8,800 359 Murata Manufacturing Co. Ltd. (Electronic Equipment Manufacturers) 7,500 541 Nikon Corp. (Photographic Products)(d) 10,000 344 Nintendo Co. Ltd. (Home Entertainment Software)(d) 2,700 1,406 Nippon Electric Glass Co. Ltd. (Electronic Equipment Manufacturers)(d) 32,000 515 Nippon Mining Holdings, Inc. (Oil & Gas Refining & Marketing) 67,500 678 Nippon Oil Corp. (Oil & Gas Refining & Marketing)(d) 25,000 232 Nomura Holdings, Inc. (Investment Banking & Brokerage)(d) 17,100 287 Nomura Research Institute Ltd. (IT Consulting & Other Services) 5,500 187 Pacific Management Corp. (Real Estate Management & Development) 70 87 Proto Corp. (Advertising) 500 11 Riso Kagaku Corp. (Office Electronics) 2,500 51 Seiko Holdings Corp. (Apparel, Accessories & Luxury Goods)(d) 6,000 35 Shin-Etsu Chemical Co. Ltd. (Diversified Chemicals) 4,000 277 Sinko Industries Ltd. (Building Products) 7,000 66 See Notes to Financial Statements 79 PHOENIX WORLDWIDE STRATEGIES FUND VALUE SHARES (000) -------- -------- JAPAN--CONTINUED Sumitomo Corp. (Trading Companies & Distributors)(d) 20,100 $ 388 Sumitomo Metal Industries Ltd. (Steel)(d) 102,000 595 Sumitomo Trust & Banking Co. Ltd. (The) (Diversified Banks)(d) 26,000 197 Tabuchi Electric Co. Ltd. (Electrical Components & Equipment)(b) 4,000 12 Taihei Kogyo Co. Ltd. (Construction & Engineering) 10,000 54 Tokyo Tekko Co. Ltd. (Steel)(d) 3,000 17 Toshiba Plant Systems & Services Corp. (Construction & Engineering) 9,000 88 Toyo Kohan Co. Ltd. (Steel) 3,000 19 Toyo Suisan Kaisha Ltd. (Packaged Foods & Meats) 1,000 19 Toyota Motor Corp. (Automobile Manufacturers)(d) 8,700 514 Victor Co. of Japan Ltd. (Consumer Electronics)(b) 8,000 18 Yamaha Motor Co. Ltd. (Motorcycle Manufacturers)(d) 13,200 337 Yamato Kogyo Co. Ltd. (Steel)(d) 5,500 264 -------- 15,453 -------- LUXEMBOURG--0.5% ArcelorMittal (Steel) 8,179 645 MEXICO--0.2% Grupo Mexico S.A.B. de C.V. Series B (Diversified Metals & Mining) 11,900 85 Telefonos de Mexico S.A.B. de C.V. Series L (Integrated Telecommunication Services) 74,800 123 -------- 208 -------- NETHERLANDS--3.5% ASM International N.V. (Semiconductor Equipment)(b)(d) 1,988 57 ASML Holding N.V. (Semiconductor Equipment)(b) 16,600 550 Draka Holding N.V. (Electrical Components & Equipment)(d) 3,037 136 Heineken N.V. (Brewers) 5,311 348 Hunter Douglas N.V. (Home Furnishings) 2,414 217 ING Groep N.V. (Other Diversified Financial Services)(d) 45,975 2,041 Koninklijke KPN N.V. (Integrated Telecommunication Services) 12,200 212 OCE N.V. (Office Electronics) 4,164 87 Randstad Holding N.V. (Human Resources & Employment Services) 4,400 238 Unilever N.V. - CVA (Packaged Foods & Meats) 249 8 Wolters Kluwer N.V. (Publishing) 13,471 400 -------- 4,294 -------- VALUE SHARES (000) -------- -------- NEW ZEALAND--0.1% Fletcher Building Ltd. (Construction Materials) 14,766 $ 142 NORWAY--0.3% Cermaq ASA (Agricultural Products) 1,500 28 Orkla ASA (Industrial Conglomerates) 18,000 322 Petroleum Geo-Services ASA (Oil & Gas Equipment & Services)(b) 2,750 79 -------- 429 -------- RUSSIA--2.3% LUKOIL Sponsored ADR (Integrated Oil & Gas) 10,688 890 Mobile TeleSystems OJSC Sponsored ADR (Wireless Telecommunication Services) 22,400 1,553 Novolipetsk Steel GDR Registered Shares (Steel) 4,494 151 Vimpel-Communications Sponsored ADR (Wireless Telecommunication Services)(d) 2,800 76 VTB Bank OJSC Sponsored GDR (Diversified Banks)(b) 23,595 210 -------- 2,880 -------- SINGAPORE--0.8% CapitaLand Ltd. (Real Estate Management & Development) 50,000 274 Jardine Cycle & Carriage Ltd. (Distributors) 24,000 299 L.C. Development Ltd.(Real Estate Management & Development) 29,000 9 Rotary Engineering Ltd. (Construction & Engineering) 44,000 42 Swiber Holdings Ltd. (Oil & Gas Equipment & Services)(b) 14,000 33 United Overseas Bank Ltd. (Diversified Banks) 21,000 312 -------- 969 -------- SOUTH KOREA--0.7% Hanwha Chemical Corp. (Diversified Chemicals) 3,950 104 Hyundai Heavy Industries Co. Ltd. (Construction & Farm Machinery & Heavy Trucks) 137 63 KT Corp. (Integrated Telecommunication Services) 10,800 542 Mirae Asset Securities Co. Ltd. (Investment Banking & Brokerage) 727 70 Woori Finance Holdings Co., Ltd (Multi-Sector Holdings) 1,730 40 -------- 819 -------- VALUE SHARES (000) -------- -------- SPAIN--0.9% Banco Bilbao Vizcaya Argentaria S.A. (Diversified Banks)(d) 32,422 $ 760 Telefonica SA (Integrated Telecommunication Services) 15,100 423 -------- 1,183 -------- SWEDEN--1.9% JM AB (Construction & Engineering) 3,200 77 Scania AB (Construction & Farm Machinery & Heavy Trucks) 5,300 136 Skanska AB Class B (Construction & Engineering) 14,175 281 Swedbank AB Class A (Diversified Banks) 9,647 322 Telefonaktiebolaget LM Ericsson Class B (Communications Equipment) 105,717 423 Volvo AB Class B (Construction & Farm Machinery & Heavy Trucks) 64,167 1,118 -------- 2,357 -------- SWITZERLAND--3.9% Credit Suisse Group Registered Shares (Diversified Capital Markets) 8,397 557 Forbo Holding AG Registered Shares (Home Furnishings)(b) 30 18 Holcim Ltd. Registered Shares (Construction Materials) 3,300 364 Nestle S.A. Registered Shares (Packaged Foods & Meats) 44 20 Novartis AG Registered Shares (Pharmaceuticals) 15,710 867 Roche Holding AG Registered Shares (Pharmaceuticals) 4,537 823 Swatch Group AG (The) (Apparel, Accessories & Luxury Goods) 898 295 UBS AG Registered Shares (Diversified Capital Markets) 7,021 377 Zurich Financial Services AG Registered Shares (Multi-line Insurance) 4,867 1,460 -------- 4,781 -------- TAIWAN--0.3% Chunghwa Telecom Co. Ltd. (Integrated Telecommunication Services) 1,842 4 Powerchip Semiconductor Corp. (Semiconductors) 149,400 74 Taiwan Semiconductor Manufacturing Co. Ltd. Sponsored ADR (Semiconductors)(d) 26,130 264 -------- 342 -------- See Notes to Financial Statements 80 PHOENIX WORLDWIDE STRATEGIES FUND VALUE SHARES (000) -------- -------- THAILAND--0.1% Aromatics Thailand PCL (Fertilizers & Agricultural Chemicals) 14,400 $ 32 IRPC PCL (Fertilizers & Agricultural Chemicals) 258,100 52 -------- 84 -------- TURKEY--0.1% Tupras-Turkiye Petro Rafinerileri A.S. (Oil & Gas Refining & Marketing) 6,335 168 UNITED KINGDOM--10.4% 3i Group plc (Asset Management & Custody Banks) 9,003 184 Antofagasta plc (Diversified Metals & Mining) 114,146 1,781 AstraZeneca plc (Pharmaceuticals) 27,426 1,374 Aviva plc (Multi-line Insurance) 24,270 366 BAE Systems plc (Aerospace & Defense) 50,010 505 Barclays plc (Diversified Banks) 36,550 445 British Airways plc (Airlines)(b) 14,083 110 British American Tobacco plc (Tobacco) 17,393 623 British Sky Broadcasting Group plc (Broadcasting & Cable TV) 38,700 550 BT Group plc (Integrated Telecommunication Services) 238,538 1,498 Character Group plc (The) (Leisure Products) 2,889 10 CSR plc (Semiconductors)(b)(d) 751 10 easyJet plc (Airlines)(b) 19,400 208 Emap plc (Publishing) 18,583 334 GlaxoSmithKline plc (Pharmaceuticals) 29,400 780 Invesco plc (Asset Management & Custody Banks) 17,600 238 VALUE SHARES (000) -------- -------- UNITED KINGDOM--CONTINUED Johnson Matthey plc (Specialty Chemicals) 6,326 $ 216 KCOM Group plc (Integrated Telecommunication Services) 9,976 14 Keller Group plc (Construction & Engineering) 759 15 Legal & General Group plc (Life & Health Insurance) 172,300 471 Michael Page International plc (Human Resources & Employment Services) 23,656 200 Micro Focus International plc (Application Software) 3,289 20 National Grid plc (Multi-Utilities) 28,212 453 NETeller plc (Education Services)(b)(d) 15,300 24 Next plc (Department Stores) 912 37 Petrofac Ltd. (Oil & Gas Equipment & Services) 7,392 70 Reckitt Benckiser plc (Household Products) 715 42 Rolls-Royce Group plc (Aerospace & Defense)(b) 42,477 454 Royal Bank of Scotland Group plc (Diversified Banks) 19,584 210 Scottish & Newcastle plc (Brewers) 27,640 346 Smiths Group plc (Industrial Conglomerates) 13,980 306 THUS Group plc (Alternative Carriers)(b) 11,186 35 Vodafone Group plc (Wireless Telecommunication Services) 167,925 606 Wolseley plc (Trading Companies & Distributors) 9,874 167 Yell Group plc (Publishing) 19,440 171 -------- 12,873 -------- VALUE SHARES (000) -------- -------- UNITED STATES--2.3% Accenture Ltd. Class A (IT Consulting & Other Services) 2,050 $ 83 Royal Dutch Shell plc Class A (Integrated Oil & Gas)(g) 11,460 473 Royal Dutch Shell plc Class A (Integrated Oil & Gas)(d) 53,550 2,211 XL Capital Ltd. Class A (Property & Casualty Insurance) 820 65 -------- 2,832 - ---------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $69,476) 87,079 - ---------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--98.8% (IDENTIFIED COST $98,142) 122,257 - ---------------------------------------------------------------------------- SHORT-TERM INVESTMENTS--20.9% MONEY MARKET MUTUAL FUNDS(e)--20.1% State Street Navigator Prime Plus (5.30% seven-day effective yield) 24,900,153 24,900 PAR VALUE (000) -------- COMMERCIAL PAPER(h)--0.8% UBS Finance Delaware LLC 4.750% due 10/1/07 $980 980 - ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $25,880) 25,880 - ---------------------------------------------------------------------------- TOTAL INVESTMENTS--119.7% (IDENTIFIED COST $124,022) 148,137(a) Other assets and liabilities, net--(19.7)% (24,352) -------- NET ASSETS--100.0% $123,785 ======== (a) Federal Income Tax Information (reported in 000's): Net unrealized appreciation of investment securities is comprised of gross appreciation of $26,296 and gross depreciation of $2,409 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $124,250. (b) Non-income producing. (c) A security is considered to be foreign if the security is issued in a foreign country. The country of risk, noted in the header, is determined based on criteria described in Note 2G, "Foreign security country determination" in the Notes to Financial Statements. (d) All or a portion of security is on loan. (e) Represents security purchased with cash collateral received for securities on loan. (f) Illiquid. Security valued at fair value as determined in good faith by or under the direction of the Trustees. At September 30, 2007, these securities amounted to a value of $260 (reported in 000's) or 0.0% of net assets. (g) Shares traded on Amsterdam Exchange. (h) The rate shown is the discount rate. See Notes to Financial Statements 81 PHOENIX GROWTH OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 VALUE SHARES (000) -------- -------- DOMESTIC COMMON STOCKS--89.0% AEROSPACE & DEFENSE--1.2% Precision Castparts Corp. 3,210 $ 475 -------- AGRICULTURAL PRODUCTS--1.0% Bunge Ltd. 3,510 377 -------- AIR FREIGHT & LOGISTICS--1.7% Robinson (C.H.) Worldwide, Inc. 11,900 646 -------- APPAREL RETAIL--1.3% Guess?, Inc. 10,110 496 -------- APPAREL, ACCESSORIES & LUXURY GOODS--3.0% Coach, Inc.(b) 15,710 742 Under Armour, Inc. Class A(b) 7,300 437 -------- 1,179 -------- APPLICATION SOFTWARE--1.0% Salesforce.com, Inc.(b) 7,710 396 -------- ASSET MANAGEMENT & CUSTODY BANKS--1.2% Franklin Resources, Inc. 3,685 470 -------- BIOTECHNOLOGY--3.8% Celgene Corp.(b) 7,520 536 Gilead Sciences, Inc.(b) 22,840 934 -------- 1,470 -------- CASINOS & GAMING--3.4% Las Vegas Sands Corp.(b) 5,235 698 Wynn Resorts Ltd. 4,015 633 -------- 1,331 -------- COMMUNICATIONS EQUIPMENT--7.0% Cisco Systems, Inc.(b) 51,560 1,707 F5 Networks, Inc.(b) 9,190 342 Juniper Networks, Inc.(b) 18,410 674 -------- 2,723 -------- COMPUTER & ELECTRONICS RETAIL--1.5% GameStop Corp. Class A(b) 10,120 570 -------- COMPUTER HARDWARE--2.4% Apple, Inc.(b) 6,120 940 -------- COMPUTER STORAGE & PERIPHERALS--1.3% SanDisk Corp.(b) 9,500 523 -------- CONSTRUCTION & ENGINEERING--1.5% Shaw Group, Inc. (The)(b) 10,000 581 -------- CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--3.3% Cummins, Inc. 3,520 450 Deere & Co. 5,785 859 -------- 1,309 -------- VALUE SHARES (000) -------- -------- ELECTRICAL COMPONENTS & EQUIPMENT--4.1% First Solar, Inc.(b) 4,560 $ 537 Roper Industries, Inc. 8,200 537 SunPower Corp. Class A(b) 6,630 549 -------- 1,623 -------- ENVIRONMENTAL & FACILITIES SERVICES--0.3% Stericycle, Inc.(b) 2,250 129 -------- FERTILIZERS & AGRICULTURAL CHEMICALS--1.8% Monsanto Co. 8,390 719 -------- HEALTH CARE EQUIPMENT--5.8% Baxter International, Inc. 14,630 823 Intuitive Surgical, Inc.(b) 2,965 682 St. Jude Medical, Inc.(b) 17,440 769 -------- 2,274 -------- HEALTH CARE SERVICES--2.6% Express Scripts, Inc.(b) 7,380 412 Medco Health Solutions, Inc.(b) 6,700 606 -------- 1,018 -------- HOME ENTERTAINMENT SOFTWARE--2.7% Activision, Inc.(b) 27,100 585 Electronic Arts, Inc.(b) 8,400 470 -------- 1,055 -------- INDUSTRIAL CONGLOMERATES--1.9% General Electric Co. 18,350 760 -------- INTERNET RETAIL--3.0% Amazon.com, Inc.(b) 6,970 649 Expedia, Inc.(b) 16,310 520 -------- 1,169 -------- INTERNET SOFTWARE & SERVICES--5.0% Google, Inc. Class A(b) 2,415 1,370 VeriSign, Inc.(b) 17,780 600 -------- 1,970 -------- INVESTMENT BANKING & BROKERAGE--1.9% Goldman Sachs Group, Inc. (The) 3,360 728 -------- LIFE SCIENCES TOOLS & SERVICES--2.9% Charles River Laboratories International, Inc.(b) 6,290 353 Thermo Fisher Scientific, Inc.(b) 13,600 785 -------- 1,138 -------- OIL & GAS EXPLORATION & PRODUCTION--0.9% XTO Energy, Inc. 5,490 340 -------- PHARMACEUTICALS--1.3% Allergan, Inc. 7,680 495 -------- VALUE SHARES (000) -------- -------- SEMICONDUCTOR EQUIPMENT--4.2% Applied Materials, Inc. 32,090 $ 664 KLA-Tencor Corp. 10,360 578 Varian Semiconductor Equipment Associates, Inc.(b) 7,870 421 -------- 1,663 -------- SEMICONDUCTORS--7.5% Broadcom Corp. Class A(b) 23,500 856 Intel Corp. 56,810 1,469 NVIDIA Corp.(b) 17,285 627 -------- 2,952 -------- SOFT DRINKS--1.4% Hansen Natural Corp.(b) 9,870 559 -------- SPECIALIZED FINANCE--4.8% CME Group, Inc. 1,390 817 IntercontinentalExchange, Inc.(b) 3,640 553 Nymex Holdings, Inc. 4,035 525 -------- 1,895 -------- SYSTEMS SOFTWARE--1.0% VMware, Inc. Class A(b) 4,730 402 -------- WIRELESS TELECOMMUNICATION SERVICES--1.3% NII Holdings, Inc.(b) 5,940 488 - ---------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $29,074) 34,863 - ---------------------------------------------------------------------------- FOREIGN COMMON STOCKS(c)--8.5% COMMUNICATIONS EQUIPMENT--2.5% Nokia Oyj Sponsored ADR (Finland) 11,450 434 Research In Motion Ltd. (United States)(b) 5,670 559 -------- 993 -------- HEAVY ELECTRICAL EQUIPMENT--1.9% ABB Ltd. Sponsored ADR (Switzerland) 27,990 734 -------- PHARMACEUTICALS--1.9% Shire Pharmaceuticals Group plc ADR (United Kingdom) 10,290 762 -------- WIRELESS TELECOMMUNICATION SERVICES--2.2% China Mobile Ltd. ADR (Hong Kong) 6,020 494 Rogers Communications, Inc. Class B (Canada) 7,760 353 -------- 847 - ---------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $2,744) 3,336 - ---------------------------------------------------------------------------- TOTAL LONG-TERM INVESTMENTS--97.5% (IDENTIFIED COST $31,818) 38,199 - ---------------------------------------------------------------------------- See Notes to Financial Statements 82 PHOENIX GROWTH OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 VALUE SHARES (000) -------- -------- SHORT-TERM INVESTMENTS--1.7% MONEY MARKET MUTUAL FUNDS--1.7% BlackRock Liquidity Funds TempCash Portfolio - Institutional Shares (seven-day effective yield 5.37%) 682,337 $ 682 - ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $682) 682 - ---------------------------------------------------------------------------- TOTAL INVESTMENTS--99.2% (IDENTIFIED COST $32,500) 38,881(a) Other assets and liabilities, net--0.8% 328 -------- NET ASSETS--100.0% $ 39,209 ======== (a) Federal Income Tax Information (reported in 000's): Net unrealized appreciation of investment securities is comprised of gross appreciation of $6,329 and gross depreciation of $62 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $32,614. (b) Non-income producing. (c) A security is considered to be foreign if the security is issued in a foreign country. The country of risk, noted parenthetically, is determined based on criteria described in Note 2G, "Foreign security country determination" in the Notes to Financial Statements. See Notes to Financial Statements 83 PHOENIX OPPORTUNITIES TRUST STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 2007
(Reported in thousands except per share amounts) ALTERNATIVE FUNDS ------------------------------- GLOBAL MARKET UTILITIES FUND NEUTRAL FUND --------------- ------------- ASSETS Investment in securities at value(+).............................................. $59,551 $ 61,940 Investment in affiliated funds at value(a)........................................ -- -- Investment in non-affiliated funds at value(b).................................... -- -- Cash ............................................................................. 1 4 Deposits with broker for securities sold short.................................... -- 60,417 Receivables Investment securities sold...................................................... -- 5,454 Fund shares sold ............................................................... 290 467 Receivable from adviser......................................................... -- -- Dividends....................................................................... 115 60 Interest........................................................................ -- 146 Tax reclaims.................................................................... 9 -- Prepaid expenses.................................................................. 12 22 Other assets...................................................................... 3 28 ------- -------- Total assets............................................................... 59,981 128,538 ------- -------- LIABILITIES: Cash overdraft.................................................................... -- -- Securities sold short at value.................................................... -- 59,214 Payables Fund shares repurchased......................................................... --(++) 108 Investment securities purchased ................................................ -- 4,522 Investment advisory fee......................................................... 27 52 Dividends on short sales........................................................ -- 59 Administration fee.............................................................. 4 5 Transfer agent fee.............................................................. 3 13 Trustees' fee................................................................... --(++) --(++) Distribution and service fees................................................... 13 19 Dividend distributions.......................................................... -- -- Professional fee................................................................ 18 36 Trustee deferred compensation plan.............................................. 3 28 Other accrued expenses ......................................................... 11 14 ------- -------- Total liabilities.......................................................... 79 64,070 ------- -------- NET ASSETS.......................................................................... $59,902 $ 64,468 ======= ======== NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest.................................. $51,963 $ 89,489 Undistributed net investment income (distributions in excess of net investment income).............................................................. 5 969 Accumulated net realized gain (loss).............................................. 2,307 (31,365) Net unrealized appreciation (depreciation) on investments......................... 5,627 2,385 Net unrealized appreciation (depreciation) on securities sold short............... -- 2,990 ------- -------- NET ASSETS.......................................................................... $59,902 $ 64,468 ======= ======== CLASS I: Net asset value, offering price and redemption price per share (net assets/shares outstanding) -- -- ------- -------- Shares of beneficial interest outstanding, unlimited authorization -- -- ------- -------- Net Assets -- -- ------- -------- CLASS A: Net asset value per share (net assets/shares outstanding) $ 13.70 $ 10.53 ------- -------- Maximum offering price per share(d) $ 14.54 $ 11.17 ------- -------- Shares of beneficial interest outstanding, unlimited authorization 4,231 5,188 ------- -------- Net Assets $57,938 $ 54,630 ------- -------- CLASS B: Net asset value and offering price per share -- $ 10.17 ------- -------- Shares of beneficial interest outstanding, unlimited authorization -- 261 ------- -------- Net Assets -- $ 2,651 ======= ======== CLASS C: Net asset value and offering price per share $ 13.66 $ 10.12 ------- -------- Shares of beneficial interest outstanding, unlimited authorization 144 710 ------- -------- Net Assets $ 1,964 $ 7,187 ------- -------- (+) Investment in securities at cost .......................................... $53,925 $ 59,555 (a) Investment in affiliated funds at cost .................................... -- -- (b) Investment in non-affiliated funds at cost ................................ -- -- (c) Proceeds from securities sold short ....................................... -- $ 62,204 (++) Amount is less than $1,000. (o) $1 Par Value (d) Maximum offering price per share represents NAV/(1-5.75%) for Alternative Funds and Fund of Funds, and NAV/(1-4.75%) for Fixed Income Funds.
See Notes to Financial Statements 84
(Reported in thousands except per share amounts) FUNDS OF FUNDS --------------------------------- DIVERSIFIER WEALTH ACCUMULATOR PHOLIO(SM) PHOLIO(SM) ------------ ------------------- ASSETS Investment in securities at value(+).............................................. $ 1,125 $ 185 Investment in affiliated funds at value(a)........................................ 96,012 14,118 Investment in non-affiliated funds at value(b).................................... 81,102 -- Cash ............................................................................. -- 4 Deposits with broker for securities sold short.................................... -- -- Receivables Investment securities sold...................................................... -- -- Fund shares sold ............................................................... 1,526 54 Receivable from adviser......................................................... 8 4 Dividends....................................................................... 217 -- Interest........................................................................ -- -- Tax reclaims.................................................................... -- -- Prepaid expenses.................................................................. 21 24 Other assets...................................................................... --(++) 1 -------- ------- Total assets............................................................... 180,011 14,390 -------- ------- LIABILITIES: Cash overdraft.................................................................... --(++) -- Securities sold short at value.................................................... -- -- Payables Fund shares repurchased......................................................... 896 57 Investment securities purchased ................................................ 1,005 174 Investment advisory fee......................................................... -- -- Dividends on short sales........................................................ -- -- Administration fee.............................................................. 11 1 Transfer agent fee.............................................................. 26 3 Trustees' fee................................................................... 1 --(++) Distribution and service fees................................................... 55 2 Dividend distributions.......................................................... -- -- Professional fee................................................................ 23 23 Trustee deferred compensation plan.............................................. --(++) 1 Other accrued expenses ......................................................... 31 4 -------- ------- Total liabilities.......................................................... 2,048 265 -------- ------- NET ASSETS.......................................................................... $177,963 $14,125 ======== ======= NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest.................................. $170,629 $12,641 Undistributed net investment income (distributions in excess of net investment income).............................................................. 381 (1) Accumulated net realized gain (loss).............................................. (2,555) (50) Net unrealized appreciation (depreciation) on investments......................... 9,508 1,535 Net unrealized appreciation (depreciation) on securities sold short............... -- -- -------- ------- NET ASSETS.......................................................................... $177,963 $14,125 ======== ======= CLASS I: Net asset value, offering price and redemption price per share (net assets/shares outstanding) -- -- -------- ------- Shares of beneficial interest outstanding, unlimited authorization -- -- -------- ------- Net Assets -- -- -------- ------- CLASS A: Net asset value per share (net assets/shares outstanding) $ 11.80 $ 12.58 -------- ------- Maximum offering price per share(d) $ 12.52 $ 13.35 -------- ------- Shares of beneficial interest outstanding, unlimited authorization 9,288 767 -------- ------- Net Assets $109,620 $ 9,647 -------- ------- CLASS B: Net asset value and offering price per share -- -- -------- ------- Shares of beneficial interest outstanding, unlimited authorization -- -- -------- ------- Net Assets -- -- -------- ------- CLASS C: Net asset value and offering price per share $ 11.70 $ 12.49 -------- ------- Shares of beneficial interest outstanding, unlimited authorization 5,842 358 -------- ------- Net Assets $ 68,343 $ 4,478 -------- ------- (+) Investment in securities at cost .......................................... $ 1,125 $ 185 (a) Investment in affiliated funds at cost .................................... $ 94,612 $12,583 (b) Investment in non-affiliated funds at cost ................................ $ 72,994 -- (c) Proceeds from securities sold short ....................................... -- -- (++) Amount is less than $1,000. (o) $1 Par Value (d) Maximum offering price per share represents NAV/(1-5.75%) for Alternative Funds and Fund of Funds, and NAV/(1-4.75%) for Fixed Income Funds. (Reported in thousands except per share amounts) FUNDS OF FUNDS ---------------------------------- WEALTH BUILDER WEALTH GUARDIAN PHOLIO(SM) PHOLIO(SM) --------------- ---------------- ASSETS Investment in securities at value(+).............................................. $ 3,075 $ 990 Investment in affiliated funds at value(a)........................................ 135,298 61,801 Investment in non-affiliated funds at value(b).................................... -- -- Cash ............................................................................. 5 3 Deposits with broker for securities sold short.................................... -- -- Receivables Investment securities sold...................................................... -- -- Fund shares sold ............................................................... 135 5 Receivable from adviser......................................................... 7 3 Dividends....................................................................... --(++) --(++) Interest........................................................................ -- -- Tax reclaims.................................................................... -- -- Prepaid expenses.................................................................. 33 25 Other assets...................................................................... 26 12 -------- ------- Total assets............................................................... 138,579 62,839 -------- ------- LIABILITIES: Cash overdraft.................................................................... -- -- Securities sold short at value.................................................... -- -- Payables Fund shares repurchased......................................................... 241 42 Investment securities purchased ................................................ 2,337 655 Investment advisory fee......................................................... -- -- Dividends on short sales........................................................ -- -- Administration fee.............................................................. 9 4 Transfer agent fee.............................................................. 25 8 Trustees' fee................................................................... 1 --(++) Distribution and service fees................................................... 47 20 Dividend distributions.......................................................... -- -- Professional fee................................................................ 22 23 Trustee deferred compensation plan.............................................. 26 12 Other accrued expenses ......................................................... 27 13 -------- ------- Total liabilities.......................................................... 2,735 777 -------- ------- NET ASSETS.......................................................................... $135,844 $62,062 ======== ======= NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest.................................. $115,307 $55,583 Undistributed net investment income (distributions in excess of net investment income).............................................................. 54 72 Accumulated net realized gain (loss).............................................. 156 (203) Net unrealized appreciation (depreciation) on investments......................... 20,327 6,610 Net unrealized appreciation (depreciation) on securities sold short............... -- -- -------- ------- NET ASSETS.......................................................................... $135,844 $62,062 ======== ======= CLASS I: Net asset value, offering price and redemption price per share (net assets/shares outstanding) -- -- -------- ------- Shares of beneficial interest outstanding, unlimited authorization -- -- -------- ------- Net Assets -- -- -------- ------- CLASS A: Net asset value per share (net assets/shares outstanding) $ 12.81 $ 12.01 -------- ------- Maximum offering price per share(d) $ 13.59 $ 12.74 -------- ------- Shares of beneficial interest outstanding, unlimited authorization 4,578 2,476 -------- ------- Net Assets $ 58,663 $29,742 -------- ------- CLASS B: Net asset value and offering price per share -- -- -------- ------- Shares of beneficial interest outstanding, unlimited authorization -- -- -------- ------- Net Assets -- -- -------- ------- CLASS C: Net asset value and offering price per share $ 12.74 $ 11.98 -------- ------- Shares of beneficial interest outstanding, unlimited authorization 6,060 2,698 -------- ------- Net Assets $ 77,181 $32,320 -------- ------- (+) Investment in securities at cost .......................................... $ 3,075 $ 990 (a) Investment in affiliated funds at cost .................................... $114,971 $55,191 (b) Investment in non-affiliated funds at cost ................................ -- -- (c) Proceeds from securities sold short ....................................... -- -- (++) Amount is less than $1,000. (o) $1 Par Value (d) Maximum offering price per share represents NAV/(1-5.75%) for Alternative Funds and Fund of Funds, and NAV/(1-4.75%) for Fixed Income Funds. (Reported in thousands except per share amounts) FIXED INCOME FUNDS ---------------------------- CA TAX-EXEMPT BOND FUND BOND FUND ---------- --------------- ASSETS Investment in securities at value(+).............................................. $85,621 $66,581 Investment in affiliated funds at value(a)........................................ -- -- Investment in non-affiliated funds at value(b).................................... -- -- Cash ............................................................................. 93 1 Deposits with broker for securities sold short.................................... -- -- Receivables Investment securities sold...................................................... 3,706 -- Fund shares sold ............................................................... 292 --(++) Receivable from adviser......................................................... -- -- Dividends....................................................................... -- -- Interest........................................................................ 872 954 Tax reclaims.................................................................... -- -- Prepaid expenses.................................................................. 37 19 Other assets...................................................................... 21 15 ------- ------- Total assets............................................................... 90,642 67,570 ------- ------- LIABILITIES: Cash overdraft.................................................................... -- -- Securities sold short at value.................................................... -- -- Payables Fund shares repurchased......................................................... 9 5 Investment securities purchased ................................................ 3,539 -- Investment advisory fee......................................................... 48 22 Dividends on short sales........................................................ -- -- Administration fee.............................................................. 6 5 Transfer agent fee.............................................................. 8 5 Trustees' fee................................................................... 1 --(++) Distribution and service fees................................................... 11 8 Dividend distributions.......................................................... -- 113 Professional fee................................................................ 29 18 Trustee deferred compensation plan.............................................. 21 15 Other accrued expenses ......................................................... 21 8 ------- ------- Total liabilities.......................................................... 3,693 199 ------- ------- NET ASSETS.......................................................................... $86,949 $67,371 ======= ======= NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest.................................. $89,136 $65,253 Undistributed net investment income (distributions in excess of net investment income).............................................................. (8) 34 Accumulated net realized gain (loss).............................................. (1,950) (148) Net unrealized appreciation (depreciation) on investments......................... (229) 2,232 Net unrealized appreciation (depreciation) on securities sold short............... -- -- ------- ------- NET ASSETS.......................................................................... $86,949 $67,371 ======= ======= CLASS I: Net asset value, offering price and redemption price per share (net assets/shares outstanding) $ 10.32 $ 12.08 ------- ------- Shares of beneficial interest outstanding, unlimited authorization 5,045(o) 2,341 ------- ------- Net Assets $52,044 $28,277 ------- ------- CLASS A: Net asset value per share (net assets/shares outstanding) $ 10.21 $ 12.09 ------- ------- Maximum offering price per share(d) $ 10.72 $ 12.69 ------- ------- Shares of beneficial interest outstanding, unlimited authorization 2,847(o) 3,234 ------- ------- Net Assets $29,077 $39,094 ------- ------- CLASS B: Net asset value and offering price per share $ 10.01 -- ------- ------- Shares of beneficial interest outstanding, unlimited authorization 429(o) -- ------- ------- Net Assets $ 4,294 -- ------- ------- CLASS C: Net asset value and offering price per share $ 10.04 -- ------- ------- Shares of beneficial interest outstanding, unlimited authorization 153(o) -- ------- ------- Net Assets $ 1,534 -- ------- ------- (+) Investment in securities at cost .......................................... $85,850 $64,349 (a) Investment in affiliated funds at cost .................................... -- -- (b) Investment in non-affiliated funds at cost ................................ -- -- (c) Proceeds from securities sold short ....................................... -- -- (++) Amount is less than $1,000. (o) $1 Par Value (d) Maximum offering price per share represents NAV/(1-5.75%) for Alternative Funds and Fund of Funds, and NAV/(1-4.75%) for Fixed Income Funds.
See Notes to Financial Statements 85 PHOENIX OPPORTUNITIES TRUST STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30, 2007
(Reported in thousands except per share amounts) FIXED INCOME FUNDS ------------------------------- CORE EMERGING MARKETS BOND FUND BOND FUND ----------- ------------------ ASSETS Investment in securities at value(+@)............................................. $ 67,190 $ 39,447 Foreign currency at value(*)...................................................... -- -- Cash ............................................................................. 3 2 Receivables Investment securities sold...................................................... -- -- Fund shares sold ............................................................... 4 149 Dividends....................................................................... -- -- Interest........................................................................ 486 755 Tax reclaims.................................................................... -- -- Prepaid expenses.................................................................. 15 23 Other assets...................................................................... 15 8 -------- -------- Total assets............................................................... 67,713 40,384 -------- -------- LIABILITIES: Cash overdraft.................................................................... -- -- Payables Fund shares repurchased......................................................... 91 170 Investment securities purchased ................................................ -- 526 Upon return of securities loaned................................................ 1,520 -- Investment advisory fee......................................................... 13 24 Administration fee.............................................................. 5 3 Transfer agent fee.............................................................. 18 12 Trustees' fee................................................................... --(++) --(++) Distribution and service fees................................................... 15 12 Dividend distributions.......................................................... -- -- Professional fee................................................................ 29 34 Trustee deferred compensation plan.............................................. 15 8 Other accrued expenses ......................................................... 13 14 Unrealized depreciation on forward currency contracts............................. -- -- -------- -------- Total liabilities.......................................................... 1,719 803 -------- -------- NET ASSETS.......................................................................... $ 65,994 $ 39,581 ======== ======== NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest.................................... $ 86,416 $ 58,417 Undistributed net investment income (distributions in excess of net investment income) ........................................................... 20 257 Accumulated net realized gain (loss)................................................ (19,765) (19,462) Net unrealized appreciation (depreciation) on investments........................... (677) 369 -------- -------- NET ASSETS.......................................................................... $ 65,994 $ 39,581 ======== ======== CLASS A: Net asset value per share (Net assets/shares outstanding) $ 8.32 $ 8.74 -------- -------- Maximum offering price per share(d) $ 8.73 $ 9.18 -------- -------- Shares of beneficial interest outstanding, unlimited authorization 7,590 3,800 -------- -------- Net Assets $ 63,165 $ 33,225 -------- -------- CLASS B: Net asset value and offering price per share $ 8.26 $ 8.51 -------- -------- Shares of beneficial interest outstanding, unlimited authorization 194 598 -------- -------- Net Assets $ 1,604 $ 5,094 -------- -------- CLASS C: Net asset value and offering price per share $ 8.29 $ 8.57 -------- -------- Shares of beneficial interest outstanding, unlimited authorization 148 147 -------- -------- Net Assets $ 1,225 $ 1,262 -------- -------- (+) Investment in securities at cost .............................................. $ 67,867 $ 39,078 (*) Foreign currency at cost ...................................................... -- -- (@) Market value of securities on loan ............................................ $ 1,487 -- (++) Amount is less than $1,000. (o) $1 Par Value (d) Maximum offering price per share represents NAV/(1-4.75%) for Fixed Income Funds, and NAV/(1-5.75%) for International Funds and Equity Fund.
See Notes to Financial Statements 86
(Reported in thousands except per share amounts) FIXED INCOME FUNDS ------------------------------------------- MULTI-SECTOR HIGH MONEY FIXED YIELD FUND MARKET FUND INCOME FUND ------------ ------------- -------------- ASSETS Investment in securities at value(+@)............................................. $ 151,081 $96,616 $148,194 Foreign currency at value(*)...................................................... -- -- -- Cash ............................................................................. 85 162 549 Receivables Investment securities sold...................................................... 3,523 -- 2,291 Fund shares sold ............................................................... 13 221 246 Dividends....................................................................... -- -- 6 Interest........................................................................ 2,698 432 1,781 Tax reclaims.................................................................... -- -- -- Prepaid expenses.................................................................. 18 11 18 Other assets...................................................................... 29 20 29 --------- ------- -------- Total assets............................................................... 157,447 97,462 153,114 --------- ------- -------- LIABILITIES: Cash overdraft.................................................................... -- -- -- Payables Fund shares repurchased......................................................... 146 487 409 Investment securities purchased ................................................ 4,715 -- 3,798 Upon return of securities loaned................................................ 22,469 -- -- Investment advisory fee......................................................... 68 31 67 Administration fee.............................................................. 9 3 10 Transfer agent fee.............................................................. 39 29 32 Trustees' fee................................................................... 1 1 1 Distribution and service fees................................................... 29 -- 52 Dividend distributions.......................................................... -- 29 289 Professional fee................................................................ 34 23 35 Trustee deferred compensation plan.............................................. 29 20 29 Other accrued expenses ......................................................... 30 20 39 Unrealized depreciation on forward currency contracts............................. -- -- 13 --------- ------- -------- Total liabilities.......................................................... 27,569 643 4,774 --------- ------- -------- NET ASSETS.......................................................................... $ 129,878 $96,819 $148,340 ========= ======= ======== NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest.................................... $ 322,354 $96,812 $178,313 Undistributed net investment income (distributions in excess of net investment income) ........................................................... 135 12 594 Accumulated net realized gain (loss)................................................ (186,617) (5) (30,749) Net unrealized appreciation (depreciation) on investments........................... (5,994) -- 182 --------- ------- -------- NET ASSETS.......................................................................... $ 129,878 $96,819 $148,340 ========= ======= ======== CLASS A: Net asset value per share (Net assets/shares outstanding) $ 4.89 $ 1.00 $ 10.89 --------- ------- -------- Maximum offering price per share(d) $ 5.13 $ 1.00 $ 11.43 --------- ------- -------- Shares of beneficial interest outstanding, unlimited authorization 25,603 96,824 10,414 --------- ------- -------- Net Assets $ 125,200 $96,819 $113,458 --------- ------- -------- CLASS B: Net asset value and offering price per share $ 4.81 -- $ 10.88 --------- ------- -------- Shares of beneficial interest outstanding, unlimited authorization 539 -- 1,306 --------- ------- -------- Net Assets $ 2,597 -- $ 14,205 --------- ------- -------- CLASS C: Net asset value and offering price per share $ 4.84 -- $ 10.94 --------- ------- -------- Shares of beneficial interest outstanding, unlimited authorization 430 -- 1,890 --------- ------- -------- Net Assets $ 2,081 -- $ 20,677 --------- ------- -------- (+) Investment in securities at cost .............................................. $ 157,075 $96,616 $147,987 (*) Foreign currency at cost ...................................................... -- -- -- (@) Market value of securities on loan ............................................ $ 21,660 -- -- (++) Amount is less than $1,000. (o) $1 Par Value (d) Maximum offering price per share represents NAV/(1-4.75%) for Fixed Income Funds, and NAV/(1-5.75%) for International Funds and Equity Fund. (Reported in thousands except per share amounts) INTERNATIONAL FUNDS EQUITY FUND --------------------------- --------------- INTERNATIONAL WORLDWIDE GROWTH STRATEGIES STRATEGIES OPPORTUNITIES FUND FUND FUND -------------- ---------- --------------- ASSETS Investment in securities at value(+@)............................................. $102,820 $148,137 $ 38,881 Foreign currency at value(*)...................................................... 1,427 832 -- Cash ............................................................................. -- 1 -- Receivables Investment securities sold...................................................... 5,570 1,107 707 Fund shares sold ............................................................... 321 22 684 Dividends....................................................................... 266 345 15 Interest........................................................................ -- -- 5 Tax reclaims.................................................................... 54 49 -- Prepaid expenses.................................................................. 21 28 13 Other assets...................................................................... 17 22 2 -------- -------- -------- Total assets............................................................... 110,496 150,543 40,307 -------- -------- -------- LIABILITIES: Cash overdraft.................................................................... 238 -- -- Payables Fund shares repurchased......................................................... 42 122 12 Investment securities purchased ................................................ 5,405 1,517 1,018 Upon return of securities loaned................................................ -- 24,900 -- Investment advisory fee......................................................... 70 84 8 Administration fee.............................................................. 7 8 2 Transfer agent fee.............................................................. 24 21 2 Trustees' fee................................................................... 1 1 --(++) Distribution and service fees................................................... 26 29 9 Dividend distributions.......................................................... -- -- -- Professional fee................................................................ 33 14 27 Trustee deferred compensation plan.............................................. 17 22 2 Other accrued expenses ......................................................... 29 40 18 Unrealized depreciation on forward currency contracts............................. -- -- -- -------- -------- -------- Total liabilities.......................................................... 5,892 26,758 1,098 -------- -------- -------- NET ASSETS.......................................................................... $104,604 $123,785 $ 39,209 ======== ======== ======== NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest.................................... $ 83,144 $ 97,874 $ 45,522 Undistributed net investment income (distributions in excess of net investment income) ........................................................... 618 178 -- Accumulated net realized gain (loss)................................................ (1,256) 1,600 (12,694) Net unrealized appreciation (depreciation) on investments........................... 22,098 24,133 6,381 -------- -------- -------- NET ASSETS.......................................................................... $104,604 $123,785 $ 39,209 ======== ======== ======== CLASS A: Net asset value per share (Net assets/shares outstanding) $ 15.88 $ 11.59 $ 15.98 -------- -------- -------- Maximum offering price per share(d) $ 16.85 $ 12.30 $ 16.95 -------- -------- -------- Shares of beneficial interest outstanding, unlimited authorization 6,013 10,097 2,131(o) -------- -------- -------- Net Assets $ 95,453 $116,983 $ 34,039 -------- -------- -------- CLASS B: Net asset value and offering price per share $ 14.56 $ 10.48 -- -------- -------- -------- Shares of beneficial interest outstanding, unlimited authorization 453 472 -- -------- -------- -------- Net Assets $ 6,594 $ 4,945 -- -------- -------- -------- CLASS C: Net asset value and offering price per share $ 14.51 $ 10.44 $ 15.81 -------- -------- -------- Shares of beneficial interest outstanding, unlimited authorization 176 178 327(o) -------- -------- -------- Net Assets $ 2,557 $ 1,857 $ 5,170 --------- -------- -------- (+) Investment in securities at cost .............................................. $ 80,750 $124,022 $ 32,500 (*) Foreign currency at cost ...................................................... $ 1,409 $ 824 -- (@) Market value of securities on loan ............................................ -- $ 24,557 -- (++) Amount is less than $1,000. (o) $1 Par Value (d) Maximum offering price per share represents NAV/(1-4.75%) for Fixed Income Funds, and NAV/(1-5.75%) for International Funds and Equity Fund.
See Notes to Financial Statements 87 PHOENIX OPPORTUNITIES TRUST STATEMENT OF OPERATIONS
(Reported in thousands) ALTERNATIVE FUNDS -------------------------------------------------------- GLOBAL UTILITIES FUND MARKET NEUTRAL FUND ------------------------- ---------------------------- 5/1/07 - 5/1/06 - 11/1/06 - 11/1/05 - 9/30/07 4/30/07 9/30/07 10/31/06 ------------------------- ---------------------------- INVESTMENT INCOME Dividends........................................................... $ 1,132 $1,368 $ 700 $ 1,538 Income distributions received from affiliated funds................. -- -- -- -- Income distributions received from non-affiliated funds............. -- -- -- -- Interest............................................................ 35 26 2,571 5,000 Foreign taxes withheld.............................................. (64) (80) (2) (4) ------- ------ -------- ------- Total investment income........................................... 1,103 1,314 3,269 6,534 ------- ------ -------- ------- EXPENSES Investment advisory fee............................................. 162 177 978 2,108 Service fees, Class A............................................... 60 65 131 275 Distribution and service fees, Class B.............................. -- -- 31 58 Distribution and service fees, Class C.............................. 8 13 99 309 Distribution and service fees, underlying ETF's..................... -- -- -- -- Financial agent fee................................................. -- 2 -- 61 Administration fee.................................................. 22 21 53 38 Transfer agent...................................................... 11 19 105 243 Custodian........................................................... 11 22 31 35 Printing............................................................ 4 15 58 71 Professional........................................................ 18 29 42 42 Registration........................................................ 16 18 57 50 Trustees............................................................ 2 10 6 27 Miscellaneous....................................................... 3 2 13 24 ------- ------ -------- ------- Total expenses.................................................... 317 393 1,604(a) 3,341(a) Dividends on short sales............................................ -- -- 1,066 2,049 Less expenses reimbursed by investment adviser...................... (13) (64) (257) -- Custodian fees paid indirectly...................................... (1) (1) (2) (2) ------- ------ -------- ------- Net expenses...................................................... 303 328 2,411 5,388 ------- ------ -------- ------- NET INVESTMENT INCOME (LOSS)........................................ 800 986 858 1,146 ------- ------ -------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments............................. 2,319 804 6,621 13,300 Net realized gain (loss) on investments from affiliated funds....... -- -- -- -- Net realized gain (loss) on investments from non-affiliated funds... -- -- -- -- Net realized gain (loss) on securities sold short................... -- -- (12,908) (21,551) Net realized gain (loss) on foreign currency transactions........... (1) (1) -- -- Capital gain distributions received from affiliated funds........... -- -- -- -- Net change in unrealized appreciation (depreciation) on investments.................................................... (1,607) 6,717 (4,300) 3,356 Net change in unrealized appreciation (depreciation) on investments from affiliated funds.............................. -- -- -- -- Net change in unrealized appreciation (depreciation) on investments from non-affiliated funds......................................... -- -- -- -- Net change in unrealized appreciation (depreciation) on securities sold short........................................................ -- -- 6,147 (5,080) Net change in unrealized appreciation (depreciation) on foreign currency translation.............................................. --(++) --(++) -- -- ------- ------ -------- ------- NET GAIN (LOSS) ON INVESTMENTS...................................... 711 7,520 (4,440) (9,975) ------- ------ -------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ 1,511 $8,506 $ (3,582) $(8,829) ======= ====== ======== ======= (++) Amount is less than $1,000. (a) Expenses prior to dividends on short sales.
See Notes to Financial Statements 88 PHOENIX OPPORTUNITIES TRUST STATEMENT OF OPERATIONS
(Reported in thousands) FUNDS OF FUNDS ------------------------------------------------------- DIVERSIFIER PHOLIO WEALTH ACCUMULATOR PHOLIO ------------------------- --------------------------- 8/1/07 - 8/1/06 - 8/1/07 - 8/1/06 - 9/30/07 7/31/07 9/30/07 7/31/07 ------------------------- --------------------------- INVESTMENT INCOME Dividends........................................................... $ -- $ -- $ -- $ -- Income distributions received from affiliated funds................. 343 1,068 10 78 Income distributions received from non-affiliated funds............. 218 241 -- -- Interest............................................................ 9 39 -- 4 Foreign taxes withheld.............................................. -- -- -- -- ------- ------- ---- ------ Total investment income........................................... 570 1,348 10 82 ------- ------- ---- ------ EXPENSES Investment advisory fee............................................. 27 71 2 10 Service fees, Class A............................................... -- -- -- -- Distribution and service fees, Class B.............................. -- -- -- -- Distribution and service fees, Class C.............................. 80 210 5 26 Distribution and service fees, underlying ETF's..................... 28 42 -- -- Financial agent fee................................................. -- -- -- -- Administration fee.................................................. 23 58 2 8 Transfer agent...................................................... 43 85 4 16 Custodian........................................................... 2 14 1 9 Printing............................................................ 13 25 1 3 Professional........................................................ 4 24 4 23 Registration........................................................ 3 33 3 25 Trustees............................................................ 2 6 --(++) 2 Miscellaneous....................................................... 4 5 1 2 ------- ------- ---- ------ Total expenses.................................................... 229 573 23 124 Dividends on short sales............................................ -- -- -- -- Less expenses reimbursed by investment adviser...................... (55) (175) (12) (91) Custodian fees paid indirectly...................................... --(++) (1) --(++) (2) ------- ------- ---- ------ Net expenses...................................................... 174 397 11 31 ------- ------- ---- ------ NET INVESTMENT INCOME (LOSS)........................................ 396 951 (1) 51 ------- ------- ---- ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments............................. -- -- -- -- Net realized gain (loss) on investments from affiliated funds....... (2,124) (226) (15) (242) Net realized gain (loss) on investments from non-affiliated funds... -- 35 -- -- Net realized gain (loss) on securities sold short................... -- -- -- -- Net realized gain (loss) on foreign currency transactions........... -- -- -- -- Capital gain distributions received from affiliated funds........... -- 844 -- 613 Net change in unrealized appreciation (depreciation) on investments.................................................... -- -- -- -- Net change in unrealized appreciation (depreciation) on investments from affiliated funds.............................. 7,963 3,686 662 794 Net change in unrealized appreciation (depreciation) on investments from non-affiliated funds......................................... 4,409 (6,600) -- -- Net change in unrealized appreciation (depreciation) on securities sold short........................................................ -- -- -- -- Net change in unrealized appreciation (depreciation) on foreign currency translation.............................................. -- -- -- -- ------- ------- ---- ------ NET GAIN (LOSS) ON INVESTMENTS...................................... 10,248 (2,261) 647 1,165 ------- ------- ---- ------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $10,644 $(1,310) $646 $1,216 ======= ======= ==== ====== (++) Amount is less than $1,000. (a) Expenses prior to dividends on short sales. (Reported in thousands) FUNDS OF FUNDS ------------------------------------------------------- WEALTH BUILDER PHOLIO WEALTH GUARDIAN PHOLIO ------------------------- --------------------------- 8/1/07 - 8/1/06 - 8/1/07 - 8/1/06 - 9/30/07 7/31/07 9/30/07 7/31/07 ------------------------- --------------------------- INVESTMENT INCOME Dividends........................................................... $ -- $ -- $ -- $ -- Income distributions received from affiliated funds................. 213 2,112 142 1,399 Income distributions received from non-affiliated funds............. -- -- -- -- Interest............................................................ 3 15 2 13 Foreign taxes withheld.............................................. -- -- -- -- ------ ------- ------ ------ Total investment income........................................... 216 2,127 144 1,412 ------ ------- ------ ------ EXPENSES Investment advisory fee............................................. 22 134 10 61 Service fees, Class A............................................... -- -- -- -- Distribution and service fees, Class B.............................. -- -- -- -- Distribution and service fees, Class C.............................. 95 580 40 250 Distribution and service fees, underlying ETF's..................... -- -- -- -- Financial agent fee................................................. -- -- -- -- Administration fee.................................................. 19 111 9 50 Transfer agent...................................................... 34 171 11 61 Custodian........................................................... 1 9 1 6 Printing............................................................ 15 89 7 37 Professional........................................................ 4 24 4 22 Registration........................................................ 7 38 5 27 Trustees............................................................ 1 13 1 6 Miscellaneous....................................................... 4 17 1 8 ------ ------- ------ ------ Total expenses.................................................... 202 1,186 89 528 Dividends on short sales............................................ -- -- -- -- Less expenses reimbursed by investment adviser...................... (50) (531) (22) (247) Custodian fees paid indirectly...................................... -- --(++) --(++) --(++) ------ ------- ------ ------ Net expenses...................................................... 152 655 67 281 ------ ------- ------ ------ NET INVESTMENT INCOME (LOSS)........................................ 64 1,472 77 1,131 ------ ------- ------ ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments............................. -- -- -- -- Net realized gain (loss) on investments from affiliated funds....... 496 2,613 55 567 Net realized gain (loss) on investments from non-affiliated funds... -- -- -- -- Net realized gain (loss) on securities sold short................... -- -- -- -- Net realized gain (loss) on foreign currency transactions........... -- -- -- -- Capital gain distributions received from affiliated funds........... -- 6,284 -- 2,323 Net change in unrealized appreciation (depreciation) on investments.................................................... -- -- -- -- Net change in unrealized appreciation (depreciation) on investments from affiliated funds.............................. 4,880 6,637 1,941 2,333 Net change in unrealized appreciation (depreciation) on investments from non-affiliated funds......................................... -- -- -- -- Net change in unrealized appreciation (depreciation) on securities sold short........................................................ -- -- -- -- Net change in unrealized appreciation (depreciation) on foreign currency translation.............................................. -- -- -- -- ------ ------- ------ ------ NET GAIN (LOSS) ON INVESTMENTS...................................... 5,376 15,534 1,996 5,223 ----- ------- ------ ------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $5,440 $17,006 $2,073 $6,354 ====== ======= ====== ====== (++) Amount is less than $1,000. (a) Expenses prior to dividends on short sales.
See Notes to Financial Statements 89 PHOENIX OPPORTUNITIES TRUST STATEMENT OF OPERATIONS (CONTINUED)
(Reported in thousands) FIXED INCOME FUNDS ------------------------------------------------------------------- BOND FUND CA TAX-EXEMPT BOND FUND CORE BOND FUND ------------------------------------------------------------------- 10/1/06 - 5/1/07 - 5/1/06 - 11/1/06 - 11/1/05 - 9/30/07 9/30/07 4/30/07 9/30/07 10/31/06 ----------- ---------- ---------- ----------- ----------- INVESTMENT INCOME Interest.................................................. $4,937 $1,333 $2,838 $3,347 $4,036 Dividends................................................. 4 -- -- -- -- Security lending.......................................... -- -- -- 12 11 Foreign taxes withheld.................................... -- -- -- -- -- ------ ------ ------ ------ ------ Total investment income................................. 4,941 1,333 2,838 3,359 4,047 ------ ------ ------ ------ ------ EXPENSES Investment advisory fee................................... 461 130 274 281 339 Service fees, Class A..................................... 70 42 110 150 180 Distribution and service fees, Class B.................... 49 -- --(++) 15 22 Distribution and service fees, Class C.................... 15 -- -- 11 13 Financial agent fee....................................... -- -- 5 -- 47 Administration fee........................................ 76 24 45 52 22 Transfer agent............................................ 59 18 43 141 188 Custodian................................................. 24 5 2 20 18 Printing.................................................. 67 5 37 32 26 Professional.............................................. 40 17 47 39 30 Registration.............................................. 56 25 37 40 33 Trustees.................................................. 7 3 13 5 24 Miscellaneous............................................. 14 4 8 9 21 ------ ------ ------ ------ ------ Total expenses.......................................... 938 273 621 795 963 Less expenses reimbursed by investment adviser............ -- (48) (126) (118) (118) Custodian fees paid indirectly............................ (3) --(++) (1) (1) (1) ------ ------ ------ ------ ------ Net expenses............................................ 935 225 494 676 844 ------ ------ ------ ------ ------ NET INVESTMENT INCOME (LOSS).............................. 4,006 1,108 2,344 2,683 3,203 ------ ------ ------ ------ ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments................... 465 (147) 608 1,461 (549) Net realized gain (loss) on foreign currency transactions............................................ -- -- -- -- -- Net realized gain (loss) on options....................... -- -- -- -- -- Net change in unrealized appreciation (depreciation) on investments.......................................... (785) (833) (36) (500) 537 Net change in unrealized appreciation (depreciation) on foreign currency translations........................ -- -- -- -- -- ------ ------ ------ ------ ------ NET GAIN (LOSS) ON INVESTMENTS............................ (320) (980) 572 961 (12) ------ ------ ------ ------ ------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................................... $3,686 $ 128 $2,916 $3,644 $3,191 ====== ====== ====== ====== ====== (++) Amount is less than $1,000.
See Notes to Financial Statements 90
(Reported in thousands) FIXED INCOME FUNDS ------------------------------------------------------------------ EMERGING MARKETS BOND FUND HIGH YIELD FUND ------------------------------------------------------------------ 12/1/06 - 12/1/05 - 11/1/06 - 11/1/05 - 9/30/07 11/30/06 9/30/07 10/31/06 ----------- ----------- ----------- ------------- INVESTMENT INCOME Interest.................................................. $ 2,691 $2,968 $ 9,926 $11,134 Dividends................................................. 23 11 -- 22 Security lending.......................................... -- -- 37 43 Foreign taxes withheld.................................... (2) --(++) -- -- ------- ------ ------- ------- Total investment income................................. 2,712 2,979 9,963 11,199 ------- ------ ------- ------- EXPENSES Investment advisory fee................................... 275 314 812 956 Service fees, Class A..................................... 74 68 300 350 Distribution and service fees, Class B.................... 59 129 32 57 Distribution and service fees, Class C.................... 11 17 18 14 Financial agent fee....................................... -- 30 -- 73 Administration fee........................................ 31 14 104 43 Transfer agent............................................ 78 88 299 374 Custodian................................................. 28 20 23 24 Printing.................................................. 19 19 71 50 Professional.............................................. 34 36 47 36 Registration.............................................. 40 33 41 34 Trustees.................................................. 3 21 11 27 Miscellaneous............................................. 6 14 19 32 ------- ------ ------- ------- Total expenses.......................................... 658 803 1,777 2,070 Less expenses reimbursed by investment adviser............ -- -- -- -- Custodian fees paid indirectly............................ (5) (2) (7) (6) ------- ------ ------- ------- Net expenses............................................ 653 801 1,770 2,064 ------- ------ ------- ------- NET INVESTMENT INCOME (LOSS).............................. 2,059 2,178 8,193 9,135 ------- ------ ------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments................... 1,817 2,042 2,695 666 Net realized gain (loss) on foreign currency transactions............................................ 15 2 -- (2) Net realized gain (loss) on options....................... -- 2 -- -- Net change in unrealized appreciation (depreciation) on investments.......................................... (2,292) (696) (2,873) 1,026 Net change in unrealized appreciation (depreciation) on foreign currency translations........................ (1) 1 --(++) 17 ------- ------ ------- ------- NET GAIN (LOSS) ON INVESTMENTS............................ (461) 1,351 (178) 1,707 ------- ------ ------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................................... $ 1,598 $3,529 $ 8,015 $10,842 ======= ====== ======= ======= (++) Amount is less than $1,000. (Reported in thousands) FIXED INCOME FUNDS ------------------------------------------------------------------- MONEY MARKET FUND MULTI-SECTOR FIXED INCOME FUND ------------------------------------------------------------------- 11/1/06 - 11/1/05 - 11/1/06 - 11/1/05 - 9/30/07 10/31/06 9/30/07 10/31/06 ----------- ----------- ----------- -------------- INVESTMENT INCOME Interest.................................................. $4,633 $4,903 $ 9,267 $ 9,791 Dividends................................................. -- -- 23 -- Security lending.......................................... -- -- -- -- Foreign taxes withheld.................................... -- -- (4) (5) ------ ------ ------- ------- Total investment income................................. 4,633 4,903 9,286 9,786 ------ ------ ------- ------- EXPENSES Investment advisory fee................................... 343 410 757 805 Service fees, Class A..................................... -- -- 266 288 Distribution and service fees, Class B.................... -- -- 130 151 Distribution and service fees, Class C.................... -- -- 183 161 Financial agent fee....................................... -- 56 -- 72 Administration fee........................................ 30 15 115 44 Transfer agent............................................ 226 281 207 215 Custodian................................................. 16 25 32 33 Printing.................................................. 48 31 76 40 Professional.............................................. 33 28 41 42 Registration.............................................. 24 27 40 41 Trustees.................................................. 7 25 12 27 Miscellaneous............................................. 13 24 27 31 ------ ------ ------- ------- Total expenses.......................................... 740 922 1,886 1,950 Less expenses reimbursed by investment adviser............ -- (63) -- -- Custodian fees paid indirectly............................ (1) (1) (14) (11) ------ ------ ------- ------- Net expenses............................................ 739 858 1,872 1,939 ------ ------ ------- ------- NET INVESTMENT INCOME (LOSS).............................. 3,894 4,045 7,414 7,847 ------ ------ ------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments................... (5) -- 1,273 781 Net realized gain (loss) on foreign currency transactions............................................ -- -- (285) (314) Net realized gain (loss) on options....................... -- -- -- -- Net change in unrealized appreciation (depreciation) on investments.......................................... -- -- (1,534) 2,307 Net change in unrealized appreciation (depreciation) on foreign currency translations........................ -- -- 140 11 ------ ------ ------- ------- NET GAIN (LOSS) ON INVESTMENTS............................ (5) -- (406) 2,785 ------ ------ ------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................................... $3,889 $4,045 $ 7,008 $10,632 ====== ====== ======= ======= (++) Amount is less than $1,000.
See Notes to Financial Statements 91 PHOENIX OPPORTUNITIES TRUST STATEMENT OF OPERATIONS (CONTINUED)
(Reported in thousands) INTERNATIONAL FUNDS ---------------------------------- INTERNATIONAL STRATEGIES FUND ---------------------------------- 12/1/06 - 12/1/05 - 9/30/07 11/30/06 ---------------- ---------------- INVESTMENT INCOME Dividends................................................. $ 2,524 $ 2,608 Interest.................................................. 23 34 Security lending.......................................... -- -- Foreign taxes withheld.................................... (203) (198) ------- ------- Total investment income................................. 2,344 2,444 ------- ------- EXPENSES Investment advisory fee................................... 692 753 Service fees, Class A..................................... 185 200 Distribution and service fees, Class B.................... 55 66 Distribution and service fees, Class C.................... 20 20 Financial agent fee....................................... -- 49 Administration fee........................................ 68 34 Transfer agent............................................ 162 205 Custodian................................................. 75 60 Printing.................................................. 32 44 Professional.............................................. 39 34 Registration.............................................. 28 33 Trustees.................................................. 7 23 Miscellaneous............................................. 12 34 ------- ------- Total expenses.......................................... 1,375 1,555 Less expenses reimbursed by investment adviser............ -- (73) Custodian fees paid indirectly............................ (2) (1) ------- ------- Net expenses............................................ 1,373 1,481 ------- ------- NET INVESTMENT INCOME (LOSS)................................ 971 963 ------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments................... 10,785 7,406 Net realized gain (loss) on foreign currency transactions............................................ 58 58 Net change in unrealized appreciation (depreciation) on investments.......................................... 3,601 12,605 Net change in unrealized appreciation (depreciation) on foreign currency translations........................ 12 18 ------- ------- NET GAIN (LOSS) ON INVESTMENTS............................ 14,456 20,087 ------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................................... $15,427 $21,050 ======= ======= (++) Amount is less than $1,000.
See Notes to Financial Statements 92 PHOENIX OPPORTUNITIES TRUST STATEMENT OF OPERATIONS (CONTINUED)
(Reported in thousands) INTERNATIONAL FUNDS EQUITY FUNDS -------------------------------- ------------------------------- WORLDWIDE STRATEGIES FUND GROWTH OPPORTUNITIES FUND -------------------------------- ------------------------------- 7/1/07 - 7/1/06 - 10/1/06 - 9/30/07 6/30/07 9/30/07 --------------- --------------- ------------------------------- INVESTMENT INCOME Dividends................................................. $ 661 $ 3,094 $ 86 Interest.................................................. 15 87 24 Security lending.......................................... 20 57 -- Foreign taxes withheld.................................... (28) (180) (3) ------ ------- ------ Total investment income................................. 668 3,058 107 ------ ------- ------ EXPENSES Investment advisory fee................................... 259 993 125 Service fees, Class A..................................... 72 275 41 Distribution and service fees, Class B.................... 12 52 -- Distribution and service fees, Class C.................... 4 18 4 Financial agent fee....................................... -- -- -- Administration fee........................................ 26 94 13 Transfer agent............................................ 46 270 15 Custodian................................................. 33 92 27 Printing.................................................. 16 62 12 Professional.............................................. 16 41 31 Registration.............................................. 10 37 43 Trustees.................................................. 3 15 1 Miscellaneous............................................. 3 18 2 ------ ------- ------ Total expenses.......................................... 500 1,967 314 Less expenses reimbursed by investment adviser............ -- (28) (100) Custodian fees paid indirectly............................ --(++) (2) -- ------ ------- ------ Net expenses............................................ 500 1,937 214 ------ ------- ------ NET INVESTMENT INCOME (LOSS)................................ 168 1,121 (107) ------ ------- ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments................... 1,824 12,994 385 Net realized gain (loss) on foreign currency transactions............................................ 19 41 -- Net change in unrealized appreciation (depreciation) on investments.......................................... 213 11,520 5,240 Net change in unrealized appreciation (depreciation) on foreign currency translations........................ 15 (1) -- ------ ------- ------ NET GAIN (LOSS) ON INVESTMENTS............................ 2,071 24,554 5,625 ------ ------- ------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................................... $2,239 $25,675 $5,518 ====== ======= ====== (++) Amount is less than $1,000.
See Notes to Financial Statements 93 PHOENIX OPPORTUNITIES TRUST STATEMENT OF CHANGES IN NET ASSETS
(Reported in thousands) ALTERNATIVE FUNDS -------------------------------------------- GLOBAL UTILITIES FUND -------------------------------------------- 5/1/07- 5/1/06- 5/1/05- 9/30/07 4/30/07 4/30/06 ------------- ------------- ------------ INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss)................................................... $ 800 $ 986 $ 513 Net realized gain (loss)....................................................... 2,318 803 (179) Net change in unrealized appreciation (depreciation)........................... (1,607) 6,717 472 ------- ------- ------- Increase (decrease) in net assets resulting from operations.................... 1,511 8,506 806 ------- ------- ------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A................................................. (1,008) (787) (443) Net investment income, Class B................................................. -- -- -- Net investment income, Class C................................................. (25) (34) (27) Net realized short-term gains, Class A......................................... -- -- -- Net realized short-term gains, Class B......................................... -- -- -- Net realized short-term gains, Class C......................................... -- -- -- Net realized long-term gains, Class A.......................................... (605) -- -- Net realized long-term gains, Class B.......................................... -- -- -- Net realized long-term gains, Class C.......................................... (18) -- -- ------- ------- ------- Decrease in net assets from distributions to shareholders...................... (1,656) (821) (470) ------- ------- ------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A.......................... 6,904 29,555 7,840 Change in net assets from share transactions, Class B.......................... -- -- -- Change in net assets from share transactions, Class C.......................... 184 312 738 ------- ------- ------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS...................... 7,088 29,867 8,578 NET INCREASE (DECREASE) IN NET ASSETS ......................................... 6,943 37,552 8,914 NET ASSETS Beginning of period............................................................ 52,959 15,407 6,493 ------- ------- ------- END OF PERIOD.................................................................. $59,902 $52,959 $15,407 ======= ======= ======= Undistributed net investment income (accumulated net investment loss).......... $ 5 $ 233 $ 68 (++) Amount is less than $1,000.
See Notes to Financial Statements 94 PHOENIX OPPORTUNITIES TRUST STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
(Reported in thousands) ALTERNATIVE FUNDS --------------------------------------------- MARKET NEUTRAL FUND --------------------------------------------- 11/1/06- 11/1/05- 11/1/04- 9/30/07 10/31/06 10/31/05 ------------- ------------- ------------- INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss)................................................... $ 858 $ 1,146 $ (675) Net realized gain (loss)....................................................... (6,287) (8,251) 1,815 Net change in unrealized appreciation (depreciation)........................... 1,847 (1,724) 1,695 -------- ------- -------- Increase (decrease) in net assets resulting from operations.................... (3,582) (8,829) 2,835 -------- ------- -------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A................................................. (1,038) -- -- Net investment income, Class B................................................. (55) -- -- Net investment income, Class C................................................. (194) -- -- Net realized short-term gains, Class A......................................... -- -- -- Net realized short-term gains, Class B......................................... -- -- -- Net realized short-term gains, Class C......................................... -- -- -- Net realized long-term gains, Class A.......................................... -- -- -- Net realized long-term gains, Class B.......................................... -- -- -- Net realized long-term gains, Class C.......................................... -- -- -- -------- -------- -------- Decrease in net assets from distributions to shareholders...................... (1,287) -- -- -------- -------- -------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A.......................... (30,541) (15,950) 38,283 Change in net assets from share transactions, Class B.......................... (1,465) (3,098) (4,749) Change in net assets from share transactions, Class C.......................... (10,426) (19,931) 14,247 -------- -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS...................... (42,432) (38,979) 47,781 NET INCREASE (DECREASE) IN NET ASSETS ......................................... (47,301) (47,808) 50,616 NET ASSETS Beginning of period............................................................ 111,769 159,577 108,961 -------- -------- -------- END OF PERIOD.................................................................. $ 64,468 $111,769 $159,577 ======== ======== ======== Undistributed net investment income (accumulated net investment loss).......... $ 969 $ 1,261 $ -- (++) Amount is less than $1,000. (Reported in thousands) FUNDS OF FUNDS --------------------------------------------- DIVERSIFIER PHOLIO FUND --------------------------------------------- 8/1/07- 8/1/06- 11/30/05- 9/30/07 7/31/07 7/31/06 ------------- ------------- ------------- INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss)................................................... $ 396 $ 951 $ 3 Net realized gain (loss)....................................................... (2,124) 653 (3) Net change in unrealized appreciation (depreciation)........................... 12,372 (2,914) 49 -------- -------- ------ Increase (decrease) in net assets resulting from operations.................... 10,644 (1,310) 49 -------- -------- ------ FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A................................................. (59) (716) --(++) Net investment income, Class B................................................. -- -- --(++) Net investment income, Class C................................................. (37) (294) -- Net realized short-term gains, Class A......................................... (65) -- -- Net realized short-term gains, Class B......................................... -- -- -- Net realized short-term gains, Class C......................................... (41) -- -- Net realized long-term gains, Class A.......................................... (510) (2) -- Net realized long-term gains, Class B.......................................... -- -- -- Net realized long-term gains, Class C.......................................... (324) (2) -- -------- -------- ------ Decrease in net assets from distributions to shareholders...................... (1,036) (1,014) (1) -------- -------- ------ FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A.......................... 8,461 95,503 1,196 Change in net assets from share transactions, Class B.......................... -- -- -- Change in net assets from share transactions, Class C.......................... 3,995 60,907 569 -------- -------- ------ INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS...................... 12,456 156,410 1,765 NET INCREASE (DECREASE) IN NET ASSETS ......................................... 22,064 154,086 1,813 NET ASSETS Beginning of period............................................................ 155,899 1,813 -- -------- -------- ------ END OF PERIOD.................................................................. $177,963 $155,899 $1,813 ======== ======== ====== Undistributed net investment income (accumulated net investment loss).......... $ 381 $ 238 $ 2 (++) Amount is less than $1,000.
See Notes to Financial Statements 95 PHOENIX OPPORTUNITIES TRUST STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
(Reported in thousands) FUNDS OF FUNDS -------------------------------------------- WEALTH ACCUMULATOR PHOLIO FUND -------------------------------------------- 8/1/07- 8/1/06- 8/4/05- 9/30/07 7/31/07 7/31/06 ------------- ------------- ------------ INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss)................................................... $ (1) $ 51 $ 10 Net realized gain (loss)....................................................... (15) 371 12 Net change in unrealized appreciation (depreciation)........................... 662 794 79 ------- ------- ------- Increase (decrease) in net assets resulting from operations.................... 646 1,216 101 ------- ------- ------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A................................................. (29) (190) (7) Net investment income, Class C................................................. (13) (74) (1) Net realized short-term gains, Class A......................................... -- --(++) -- Net realized short-term gains, Class C......................................... -- --(++) -- Net realized long-term gains, Class A.......................................... (97) (16) -- Net realized long-term gains, Class C.......................................... (46) (9) -- ------- ------- ------- Decrease in net assets from distributions to shareholders...................... (185) (289) (8) ------- ------- ------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A.......................... 519 5,061 3,140 Change in net assets from share transactions, Class C.......................... 522 1,048 2,354 ------- ------- ------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS...................... 1,041 6,109 5,494 NET INCREASE (DECREASE) IN NET ASSETS ......................................... 1,502 7,036 5,587 NET ASSETS Beginning of period............................................................ 12,623 5,587 -- ------- ------- ------- END OF PERIOD.................................................................. $14,125 $12,623 $ 5,587 ======= ======= ======= Undistributed net investment income (accumulated net investment loss).......... $ (1) $ 40 $ 4 (++) Amount is less than $1,000.
See Notes to Financial Statements 96
(Reported in thousands) FUNDS OF FUNDS -------------------------------------------- WEALTH BUILDER PHOLIO(SM) FUND -------------------------------------------- 8/1/07- 8/1/06- 8/1/05- 9/30/07 7/31/07 7/31/06 ------------- ------------- ------------ INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss)................................................... $ 64 $ 1,472 $ 1,014 Net realized gain (loss)....................................................... 496 8,897 8,867 Net change in unrealized appreciation (depreciation)........................... 4,880 6,637 (3,103) -------- -------- -------- Increase (decrease) in net assets resulting from operations.................... 5,440 17,006 6,778 -------- -------- -------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A................................................. (109) (1,832) (659) Net investment income, Class C................................................. (145) (1,955) (449) Net realized short-term gains, Class A......................................... (135) (200) (459) Net realized short-term gains, Class C......................................... (179) (277) (765) Net realized long-term gains, Class A.......................................... (2,561) (757) (2,355) Net realized long-term gains, Class C.......................................... (3,404) (1,048) (3,925) -------- -------- -------- Decrease in net assets from distributions to shareholders...................... (6,533) (6,069) (8,612) -------- -------- -------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A.......................... 2,233 549 4,497 Change in net assets from share transactions, Class C.......................... 1,798 (5,504) (7,955) -------- -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS...................... 4,031 (4,955) (3,458) NET INCREASE (DECREASE) IN NET ASSETS ......................................... 2,938 5,982 (5,292) NET ASSETS Beginning of period............................................................ 132,906 126,924 132,216 -------- -------- -------- END OF PERIOD.................................................................. $135,844 $132,906 $126,924 ======== ======== ======== Undistributed net investment income (accumulated net investment loss).......... $ 54 $ 243 $ 86 (++) Amount is less than $1,000. (Reported in thousands) FUNDS OF FUNDS -------------------------------------------- WEALTH GUARDIAN PHOLIO(SM) FUND -------------------------------------------- 8/1/07- 8/1/06- 8/1/05- 9/30/07 7/31/07 7/31/06 ------------- ------------- ------------ INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss)................................................... $ 77 $ 1,131 $ 848 Net realized gain (loss)....................................................... 55 2,890 3,437 Net change in unrealized appreciation (depreciation)........................... 1,941 2,333 (1,837) ------- ------- ------- Increase (decrease) in net assets resulting from operations.................... 2,073 6,354 2,448 ------- ------- ------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A................................................. (115) (975) (478) Net investment income, Class C................................................. (126) (930) (447) Net realized short-term gains, Class A......................................... (62) (124) (213) Net realized short-term gains, Class C......................................... (68) (157) (339) Net realized long-term gains, Class A.......................................... (845) (264) (952) Net realized long-term gains, Class C.......................................... (924) (334) (1,514) ------- ------- ------- Decrease in net assets from distributions to shareholders...................... (2,140) (2,784) (3,943) ------- ------- ------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A.......................... 454 2,999 4,631 Change in net assets from share transactions, Class C.......................... 85 (3,524) (5,538) ------- ------- ------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS...................... 539 (525) (907) NET INCREASE (DECREASE) IN NET ASSETS ......................................... 472 3,045 (2,402) NET ASSETS Beginning of period............................................................ 61,590 58,545 60,947 ------- ------- ------- END OF PERIOD.................................................................. $62,062 $61,590 $58,545 ======= ======= ======= Undistributed net investment income (accumulated net investment loss).......... $ 72 $ 234 $ 73 (++) Amount is less than $1,000.
See Notes to Financial Statements 97 PHOENIX OPPORTUNITIES TRUST STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
(Reported in thousands) FIXED INCOME FUNDS ------------------------------------- BOND FUND ------------------------------------- 10/1/06- 10/1/05- 9/30/07 9/30/06 ----------------- ---------------- INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss)................................................... $ 4,006 $ 3,326 Net realized gain (loss)....................................................... 465 (1,669) Net change in unrealized appreciation (depreciation)........................... (785) 1,815 -------- ------- Increase (decrease) in net assets resulting from operations.................... 3,686 3,472 -------- ------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class I................................................. (2,660) (1,848) Net investment income, Class A................................................. (1,223) (1,157) Net investment income, Class B................................................. (185) (203) Net investment income, Class C................................................. (54) (57) Net realized short-term gains, Class I......................................... -- (218) Net realized short-term gains, Class A......................................... -- (240) Net realized short-term gains, Class B......................................... -- (54) Net realized short-term gains, Class C......................................... -- (16) Net realized long-term gains, Class I.......................................... -- (160) Net realized long-term gains, Class A.......................................... -- (177) Net realized long-term gains, Class B.......................................... -- (39) Net realized long-term gains, Class C.......................................... -- (12) -------- ------- Decrease in net assets from distributions to shareholders...................... (4,122) (4,181) -------- ------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class I.......................... (10,840) 33,001 Change in net assets from share transactions, Class A.......................... 1,184 (921) Change in net assets from share transactions, Class B.......................... (1,137) (1,110) Change in net assets from share transactions, Class C.......................... 140 (594) -------- ------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS...................... (10,653) 30,376 NET INCREASE (DECREASE) IN NET ASSETS ......................................... (11,089) 29,667 NET ASSETS Beginning of period............................................................ 98,038 68,371 -------- ------- END OF PERIOD.................................................................. $ 86,949 $98,038 ======== ======= Undistributed net investment income (accumulated net investment loss).......... $ (8) $ 81 (++) Amount is less than $1,000.
See Notes to Financial Statements 98 PHOENIX OPPORTUNITIES TRUST STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
(Reported in thousands) FIXED INCOME FUNDS ----------------------------------------------- CA TAX-EXEMPT BOND FUND ----------------------------------------------- 5/1/07- 5/1/06- 5/1/05- 9/30/07 4/30/07 4/30/06 ------------- ------------- ------------- INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss)................................................... $ 1,108 $ 2,344 $ 1,953 Net realized gain (loss)....................................................... (147) 608 432 Net change in unrealized appreciation (depreciation)........................... (833) (36) (1,975) ------- ------- ------- Increase (decrease) in net assets resulting from operations.................... 128 2,916 410 ------- ------- ------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class I................................................. (462) (698) -- Net investment income, Class A................................................. (604) (1,690) (1,976) Net investment income, Class B................................................. -- (1) (5) Net investment income, Class C................................................. -- -- -- Net realized short-term gains, Class I......................................... -- -- -- Net realized short-term gains, Class A......................................... -- -- (8) Net realized short-term gains, Class B......................................... -- -- --(++) Net realized short-term gains, Class C......................................... -- -- -- Net realized long-term gains, Class I.......................................... (29) (258) -- Net realized long-term gains, Class A.......................................... (42) (374) (500) Net realized long-term gains, Class B.......................................... -- -- -- Net realized long-term gains, Class C.......................................... -- -- -- ------- ------- ------- Decrease in net assets from distributions to shareholders...................... (1,137) (3,021) (2,489) ------- ------- ------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class I.......................... (262) 29,299 -- Change in net assets from share transactions, Class A.......................... (2,553) (4,211) (4,827) Change in net assets from share transactions, Class B.......................... -- (156) (56) Change in net assets from share transactions, Class C.......................... -- -- -- ------- ------- ------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS...................... (2,815) 24,932 (4,883) NET INCREASE (DECREASE) IN NET ASSETS ......................................... (3,824) 24,827 (6,962) NET ASSETS Beginning of period............................................................ 71,195 46,368 53,330 ------- ------- ------- END OF PERIOD.................................................................. $67,371 $71,195 $46,368 ======= ======= ======= Undistributed net investment income (accumulated net investment loss).......... $ 34 $ (11) $ 34 (++) Amount is less than $1,000. (Reported in thousands) FIXED INCOME FUNDS ----------------------------------------------- CORE BOND FUND ----------------------------------------------- 11/1/06- 11/1/05- 11/1/04- 9/30/07 10/31/06 10/31/05 ------------- ------------- ------------- INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss)................................................... $ 2,683 $ 3,203 $ 3,323 Net realized gain (loss)....................................................... 1,461 (549) 1,216 Net change in unrealized appreciation (depreciation)........................... (500) 537 (4,150) ------- ------- ------- Increase (decrease) in net assets resulting from operations.................... 3,644 3,191 389 ------- ------- ------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class I................................................. -- -- -- Net investment income, Class A................................................. (2,823) (3,378) (4,259) Net investment income, Class B................................................. (60) (88) (127) Net investment income, Class C................................................. (47) (53) (54) Net realized short-term gains, Class I......................................... -- -- -- Net realized short-term gains, Class A......................................... -- -- -- Net realized short-term gains, Class B......................................... -- -- -- Net realized short-term gains, Class C......................................... -- -- -- Net realized long-term gains, Class I.......................................... -- -- -- Net realized long-term gains, Class A.......................................... -- -- -- Net realized long-term gains, Class B.......................................... -- -- -- Net realized long-term gains, Class C.......................................... -- -- -- ------- ------- ------- Decrease in net assets from distributions to shareholders...................... (2,930) (3,519) (4,440) ------- ------- ------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class I.......................... -- -- -- Change in net assets from share transactions, Class A.......................... (4,913) (10,189) (10,540) Change in net assets from share transactions, Class B.......................... (161) (616) (1,144) Change in net assets from share transactions, Class C.......................... (87) 31 34 ------- ------- ------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS...................... (5,161) (10,774) (11,650) NET INCREASE (DECREASE) IN NET ASSETS ......................................... (4,447) (11,102) (15,701) NET ASSETS Beginning of period............................................................ 70,441 81,543 97,244 ------- ------- ------- END OF PERIOD.................................................................. $65,994 $70,441 $81,543 ======= ======= ======= Undistributed net investment income (accumulated net investment loss).......... $ 20 $ 79 $ 94 (++) Amount is less than $1,000.
See Notes to Financial Statements 99 PHOENIX OPPORTUNITIES TRUST STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
(Reported in thousands) FIXED INCOME FUNDS ----------------------------------------------------- EMERGING MARKETS BOND FUND ----------------------------------------------------- 12/1/06- 12/1/05- 12/1/04- 9/30/07 11/30/06 11/30/05 ----------------------------------------------------- INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss)............................................. $ 2,059 $ 2,178 $ 2,570 Net realized gain (loss)................................................. 1,832 2,046 916 Net change in unrealized appreciation (depreciation)..................... (2,293) (695) 1,185 ------- ------- ------- Increase (decrease) in net assets resulting from operations.............. 1,598 3,529 4,671 ------- ------- ------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A........................................... (1,821) (1,533) (1,521) Net investment income, Class B........................................... (319) (640) (1,297) Net investment income, Class C........................................... (57) (85) (123) ------- ------- ------- Decrease in net assets from distributions to shareholders................ (2,197) (2,258) (2,941) ------- ------- ------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A.................... 3,242 2,187 4,009 Change in net assets from share transactions, Class B.................... (3,903) (8,438) (10,512) Change in net assets from share transactions, Class C.................... (22) (771) (164) ------- ------- ------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS................ (683) (7,022) (6,667) NET INCREASE (DECREASE) IN NET ASSETS ................................... (1,282) (5,751) (4,937) NET ASSETS Beginning of period...................................................... 40,863 46,614 51,551 ------- ------- ------- END OF PERIOD............................................................ $39,581 $40,863 $46,614 ======= ======= ======= Undistributed net investment income (accumulated net investment loss).... $ 257 $ 20 $ (111)
See Notes to Financial Statements 100 PHOENIX OPPORTUNITIES TRUST STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
(Reported in thousands) FIXED INCOME FUNDS ----------------------------------------------------- HIGH YIELD FUND ----------------------------------------------------- 11/1/06- 11/1/05- 11/1/04- 9/30/07 10/31/06 10/31/05 ----------------------------------------------------- INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss)............................................. $ 8,193 $ 9,135 $ 10,812 Net realized gain (loss)................................................. 2,695 664 948 Net change in unrealized appreciation (depreciation)..................... (2,873) 1,043 (7,443) -------- -------- -------- Increase (decrease) in net assets resulting from operations.............. 8,015 10,842 4,317 -------- -------- -------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A........................................... (8,219) (9,234) (11,170) Net investment income, Class B........................................... (198) (334) (720) Net investment income, Class C........................................... (109) (83) (120) -------- -------- -------- Decrease in net assets from distributions to shareholders................ (8,526) (9,651) (12,010) -------- -------- -------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A.................... (6,709) (12,773) (23,343) Change in net assets from share transactions, Class B.................... (2,005) (3,252) (6,308) Change in net assets from share transactions, Class C.................... 515 (187) (138) -------- -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS................ (8,199) (16,212) (29,789) NET INCREASE (DECREASE) IN NET ASSETS ................................... (8,710) (15,021) (37,482) NET ASSETS Beginning of period...................................................... 138,588 153,609 191,091 -------- -------- -------- END OF PERIOD............................................................ $129,878 $138,588 $153,609 ======== ======== ======== Undistributed net investment income (accumulated net investment loss).... $ 135 $ (43) $ -- (Reported in thousands) FIXED INCOME FUNDS ----------------------------------------------------- MONEY MARKET FUND ----------------------------------------------------- 11/1/06- 11/1/05- 11/1/04 9/30/07 10/31/06 10/31/05 ----------------------------------------------------- INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss)............................................. $ 3,894 $ 4,045 $ 2,463 Net realized gain (loss)................................................. (5) -- -- Net change in unrealized appreciation (depreciation)..................... -- -- -- ------- -------- -------- Increase (decrease) in net assets resulting from operations.............. 3,889 4,045 2,463 ------- -------- -------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A........................................... (3,894) (4,045) (2,463) Net investment income, Class B........................................... -- -- -- Net investment income, Class C........................................... -- -- -- ------- -------- -------- Decrease in net assets from distributions to shareholders................ (3,894) (4,045) (2,463) ------- -------- -------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A.................... (2,955) (11,616) (28,601) Change in net assets from share transactions, Class B.................... -- -- -- Change in net assets from share transactions, Class C.................... -- -- -- ------- -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS................ (2,955) (11,616) (28,601) NET INCREASE (DECREASE) IN NET ASSETS ................................... (2,955) (11,616) (28,601) NET ASSETS Beginning of period...................................................... 99,779 111,395 139,996 ------- -------- -------- END OF PERIOD............................................................ $96,819 $ 99,779 $111,395 ======= ======== ======== Undistributed net investment income (accumulated net investment loss).... $ 12 $ -- $ --
See Notes to Financial Statements 101 PHOENIX OPPORTUNITIES TRUST STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
(Reported in thousands) FIXED INCOME FUNDS --------------------------------------------------- MULTI-SECTOR FIXED INCOME FUND --------------------------------------------------- 11/1/06- 11/1/05- 11/1/04- 9/30/07 10/31/06 10/31/05 --------------------------------------------------- INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss)................................................. $ 7,414 $ 7,847 $ 7,747 Net realized gain (loss)..................................................... 988 467 1,316 Net change in unrealized appreciation (depreciation)......................... (1,394) 2,318 (6,744) -------- -------- -------- Increase (decrease) in net assets resulting from operations.................. 7,008 10,632 2,319 -------- -------- -------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A............................................... (5,563) (5,923) (7,658) Net investment income, Class B............................................... (581) (665) (1,103) Net investment income, Class C............................................... (815) (705) (758) Net realized long-term gains, Class A........................................ -- -- -- Net realized long-term gains, Class B........................................ -- -- -- Net realized long-term gains, Class C........................................ -- -- -- -------- -------- -------- Decrease in net assets from distributions to shareholders.................... (6,959) (7,293) (9,519) -------- -------- -------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class I........................ -- -- -- Change in net assets from share transactions, Class A........................ 22 (3,125) 3,445 Change in net assets from share transactions, Class B........................ 51 (3,087) (3,804) Change in net assets from share transactions, Class C........................ 3,486 1,666 4,924 -------- -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS.................... 3,559 (4,546) 4,565 NET INCREASE (DECREASE) IN NET ASSETS ....................................... 3,608 (1,207) (2,635) NET ASSETS Beginning of period.......................................................... 144,732 145,939 148,574 -------- -------- -------- END OF PERIOD................................................................ $148,340 $144,732 $145,939 ======== ======== ======== Undistributed net investment income (accumulated net investment loss)........ $ 594 $ 8 $ (37)
(1) See Note 11 in the Notes to Financial Statements. See Notes to Financial Statements 102
(Reported in thousands) INTERNATIONAL FUNDS --------------------------------------------------- INTERNATIONAL STRATEGIES FUND --------------------------------------------------- 12/1/06- 12/1/05- 12/1/04- 9/30/07 11/30/06 11/30/05 --------------------------------------------------- INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss)................................................. $ 971 $ 963 $ 687 Net realized gain (loss)..................................................... 10,843 7,464 15,315 Net change in unrealized appreciation (depreciation)......................... 3,613 12,623 (7,584) -------- ------- ------- Increase (decrease) in net assets resulting from operations.................. 15,427 21,050 8,418 -------- ------- ------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A............................................... (1,186) (1,090) (1,135) Net investment income, Class B............................................... (53) (32) (99) Net investment income, Class C............................................... (19) (8) (20) Net realized long-term gains, Class A........................................ -- -- -- Net realized long-term gains, Class B........................................ -- -- -- Net realized long-term gains, Class C........................................ -- -- -- -------- ------- ------- Decrease in net assets from distributions to shareholders.................... (1,258) (1,130) (1,254) -------- ------- ------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class I........................ -- -- -- Change in net assets from share transactions, Class A........................ (1,330) (5,469) 7,033 Change in net assets from share transactions, Class B........................ (872) (925) (1,467) Change in net assets from share transactions, Class C........................ (158) 331 166 -------- ------- ------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS.................... (2,360) (6,063) 5,732 NET INCREASE (DECREASE) IN NET ASSETS ....................................... 11,809 13,857 12,896 NET ASSETS Beginning of period.......................................................... 92,795 78,938 66,042 -------- ------- ------- END OF PERIOD................................................................ $104,604 $92,795 $78,938 ======== ======= ======= Undistributed net investment income (accumulated net investment loss)........ $ 618 $ 843 $ 818 (Reported in thousands) INTERNATIONAL FUNDS --------------------------------------------------- WORLDWIDE STRATEGIES FUND --------------------------------------------------- 7/1/07- 7/1/06- 7/1/05- 9/30/07 6/30/07 6/30/06 --------------------------------------------------- INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss)................................................. $ 168 $ 1,121 $ 782 Net realized gain (loss)..................................................... 1,843 13,035 20,696 Net change in unrealized appreciation (depreciation)......................... 228 11,519 (2,595) -------- -------- -------- Increase (decrease) in net assets resulting from operations.................. 2,239 25,675 18,883 -------- -------- -------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A............................................... (772) (1,242) (1,061) Net investment income, Class B............................................... (18) (31) (24) Net investment income, Class C............................................... (7) (11) (14) Net realized long-term gains, Class A........................................ (6,668) -- -- Net realized long-term gains, Class B........................................ (315) -- -- Net realized long-term gains, Class C........................................ (117) -- -- -------- -------- -------- Decrease in net assets from distributions to shareholders.................... (7,897) (1,284) (1,099) -------- -------- -------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class I........................ -- -- -- Change in net assets from share transactions, Class A........................ 4,582 (8,068) (14,130) Change in net assets from share transactions, Class B........................ 129 (1,391) (556) Change in net assets from share transactions, Class C........................ 111 (1,315) (534) -------- -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS.................... 4,822 (10,774) (15,220) NET INCREASE (DECREASE) IN NET ASSETS ....................................... (836) 13,617 2,564 NET ASSETS Beginning of period.......................................................... 124,621 111,004 108,440 -------- -------- -------- END OF PERIOD................................................................ $123,785 $124,621 $111,004 ======== ======== ======== Undistributed net investment income (accumulated net investment loss)........ $ 178 $ 787 $ 730 (Reported in thousands) EQUITY FUND --------------------------------- GROWTH OPPORTUNITIES FUND --------------------------------- 10/1/06- 10/1/05- 9/30/07 9/30/06 --------------------------------- INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss)................................................. $ (107) $ (54) Net realized gain (loss)..................................................... 385 (27) Net change in unrealized appreciation (depreciation)......................... 5,240 68 -------- -------- Increase (decrease) in net assets resulting from operations.................. 5,518 (13) -------- -------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A............................................... -- -- Net investment income, Class B............................................... -- -- Net investment income, Class C............................................... -- -- Net realized long-term gains, Class A........................................ -- -- Net realized long-term gains, Class B........................................ -- -- Net realized long-term gains, Class C........................................ -- -- -------- -------- Decrease in net assets from distributions to shareholders.................... -- -- -------- -------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class I........................ -- (6,962)(1) Change in net assets from share transactions, Class A........................ 20,631 8,073 Change in net assets from share transactions, Class B........................ -- -- Change in net assets from share transactions, Class C........................ 4,687 117 -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS.................... 25,318 1,228 NET INCREASE (DECREASE) IN NET ASSETS ....................................... 30,836 1,215 NET ASSETS Beginning of period.......................................................... 8,373 7,158 -------- -------- END OF PERIOD................................................................ $ 39,209 $ 8,373 ======== ======== Undistributed net investment income (accumulated net investment loss)........ $ -- $ --
(1) See Note 11 in the Notes to Financial Statements. See Notes to Financial Statements 103 PHOENIX OPPORTUNITIES TRUST FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
NET ASSET NET NET TOTAL DIVIDENDS DISTRIBUTIONS VALUE, INVESTMENT REALIZED AND FROM FROM NET FROM NET BEGINNING INCOME UNREALIZED INVESTMENT INVESTMENT REALIZED RETURN OF TOTAL OF PERIOD (LOSS)(2) GAIN (LOSS) OPERATIONS INCOME GAINS CAPITAL DISTRIBUTIONS ==================================================================================================================================== - --------------------------- GLOBAL UTILITIES FUND - --------------------------- CLASS A 5/1/07 to 9/30/07 $13.66 $0.18 0.23 0.41 (0.23) (0.14) -- (0.37) 5/1/06 to 4/30/07 10.60 0.44 3.03 3.47 (0.41) -- -- (0.41) 5/1/05 to 4/30/06 10.13 0.42 0.44 0.86 (0.39) -- -- (0.39) 12/30/04(6) to 4/30/05 10.00 0.13 0.08 0.21 (0.08) -- -- (0.08) CLASS C 5/1/07 to 9/30/07 $13.62 0.14 0.22 0.36 (0.18) (0.14) -- (0.32) 5/1/06 to 4/30/07 10.57 0.37 3.01 3.38 (0.33) -- -- (0.33) 5/1/05 to 4/30/06 10.12 0.35 0.43 0.78 (0.33) -- -- (0.33) 12/30/04(6) to 4/30/05 10.00 0.12 0.07 0.19 (0.07) -- -- (0.07) NET ASSET NET NET TOTAL DIVIDENDS DISTRIBUTIONS VALUE, INVESTMENT REALIZED AND FROM FROM NET FROM NET CHANGE IN BEGINNING INCOME UNREALIZED INVESTMENT INVESTMENT REALIZED TOTAL NET ASSET OF PERIOD (LOSS)(2) GAIN (LOSS) OPERATIONS INCOME GAINS DISTRIBUTIONS VALUE ==================================================================================================================================== - --------------------------- MARKET NEUTRAL FUND - --------------------------- CLASS A 11/1/06 to 9/30/07 $11.19 0.14 (0.58) (0.44) (0.22) -- (0.22) (0.66) 11/1/05 to 10/31/06 11.87 0.12 (0.80) (0.68) -- -- -- (0.68) 11/1/04 to 10/31/05 11.51 (0.03) 0.39 0.36 -- -- -- 0.36 11/1/03 to 10/31/04 11.39 (0.16) 0.28 0.12 -- -- -- 0.12 11/1/02 to 10/31/03 12.09 (0.23) (0.47) (0.70) -- -- -- (0.70) 11/1/01 to 10/31/02 10.95 (0.16) 1.44 1.28 (0.14) -- (0.14) 1.14 CLASS B 11/1/06 to 9/30/07 $10.80 0.08 (0.57) (0.49) (0.14) -- (0.14) (0.63) 11/1/05 to 10/31/06 11.55 0.02 (0.77) (0.75) -- -- -- (0.75) 11/1/04 to 10/31/05 11.28 (0.13) 0.40 0.27 -- -- -- 0.27 11/1/03 to 10/31/04 11.24 (0.24) 0.28 0.04 -- -- -- 0.04 11/1/02 to 10/31/03 12.02 (0.31) (0.47) (0.78) -- -- -- (0.78) 11/1/01 to 10/31/02 10.87 (0.23) 1.43 1.20 (0.05) -- (0.05) 1.15 CLASS C 11/1/06 to 9/30/07 $10.75 0.07 (0.56) (0.49) (0.14) -- (0.14) (0.63) 11/1/05 to 10/31/06 11.49 0.02 (0.76) (0.74) -- -- -- (0.74) 11/1/04 to 10/31/05 11.22 (0.11) 0.38 0.27 -- -- -- 0.27 11/1/03 to 10/31/04 11.18 (0.24) 0.28 0.04 -- -- -- 0.04 11/1/02 to 10/31/03 11.96 (0.31) (0.47) (0.78) -- -- -- (0.78) 11/1/01 to 10/31/02 10.83 (0.23) 1.42 1.19 (0.06) -- (0.06) 1.13
See Notes to Financial Statements 104
RATIO OF NET NET RATIO OF NET GROSS RATIO OF NET ASSET ASSETS, OPERATING OPERATING INVESTMENT CHANGE IN VALUE, END OF EXPENSES TO EXPENSES TO INCOME TO NET ASSET END OF TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET PORTFOLIO VALUE PERIOD RETURN(1) (000'S) ASSETS ASSETS ASSETS TURNOVER ==================================================================================================================================== - --------------------------- GLOBAL UTILITIES FUND - --------------------------- CLASS A 5/1/07 to 9/30/07 0.04 $13.70 3.02%(4) $57,938 1.19%(3) 1.25%(3) 3.23%(3) 29%(4) 5/1/06 to 4/30/07 3.06 13.66 33.74 51,190 1.17 1.40 3.64 21 5/1/05 to 4/30/06 0.47 10.60 8.66 14,298 1.15 2.72 4.06 40 12/30/04(6) to 4/30/05 0.13 10.13 2.09(4) 6,163 1.15(3) 5.59(3) 3.81(3) 17(4) CLASS C 5/1/07 to 9/30/07 0.04 $13.66 2.72%(4) $1,964 1.95%(3) 2.00%(3) 2.47%(3) 29%(4) 5/1/06 to 4/30/07 3.05 13.62 32.55 1,769 1.91 2.19 3.11 21 5/1/05 to 4/30/06 0.45 10.57 7.87 1,108 1.90 3.54 3.38 40 12/30/04(6) to 4/30/05 0.12 10.12 1.88(4) 330 1.90(3) 8.16(3) 3.58(3) 17(4) RATIO OF GROSS RATIO OF NET RATIO OF NET OPERATING OPERATING OPERATING EXPENSES EXPENSES EXPENSES (INCLUDING (EXCLUDING (INCLUDING DIVIDENDS DIVIDENDS DIVIDENDS ON SHORT ON SHORT NET NET ON SHORT SALES, SALES, BEFORE SALES, AFTER RATIO OF NET ASSET ASSETS, AFTER EXPENSE EXPENSE EXPENSE INVESTMENT VALUE, END OF REIMBURSEMENT) REIMBURSEMENT) REIMBURSEMENT) INCOME TO END OF TOTAL PERIOD TO AVERAGE TO AVERAGE TO AVERAGE AVERAGE NET PORTFOLIO PERIOD RETURN(1) (000'S) NET ASSETS NET ASSETS NET ASSETS ASSETS TURNOVER ==================================================================================================================================== - --------------------------- MARKET NEUTRAL FUND - --------------------------- CLASS A 11/1/06 to 9/30/07 $10.53 (3.86)%(4) $ 54,630 3.56%(3) 3.95%(3) 1.91%(3) 1.45%(3) 394%(4) 11/1/05 to 10/31/06 11.19 (5.81) 89,054 3.63 3.63 2.19 1.04 285 11/1/04 to 10/31/05 11.87 3.13 111,133 3.65 3.65 2.20 (0.26) 177 11/1/03 to 10/31/04 11.51 1.05 70,892 3.42 3.42 2.21 (1.45) 175 11/1/02 to 10/31/03 11.39 (5.79) 72,428 3.85 3.85 2.29 (2.08) 329 11/1/01 to 10/31/02 12.09 11.85 61,582 3.47 3.68 2.30 (1.33) 456 CLASS B 11/1/06 to 9/30/07 $10.17 (4.64)%(4) $ 2,651 4.22%(3) 4.63%(3) 2.67%(3) 0.82%(3) 394%(4) 11/1/05 to 10/31/06 10.80 (6.41) 4,338 4.39 4.39 2.91 0.22 285 11/1/04 to 10/31/05 11.55 2.39 7,859 4.36 4.36 2.90 (1.14) 177 11/1/03 to 10/31/04 11.28 0.36 12,290 4.11 4.11 2.91 (2.15) 175 11/1/02 to 10/31/03 11.24 (6.49) 16,359 4.50 4.50 2.99 (2.74) 329 11/1/01 to 10/31/02 12.02 11.10 15,381 4.26 4.61 3.00 (2.02) 456 CLASS C 11/1/06 to 9/30/07 $10.12 (4.57)%(4) $ 7,187 4.27%(3) 4.68%(3) 2.68%(3) 0.76%(3) 394%(4) 11/1/05 to 10/31/06 10.75 (6.44) 18,377 4.41 4.41 2.92 0.19 285 11/1/04 to 10/31/05 11.49 2.41 40,584 4.35 4.35 2.90 (0.97) 177 11/1/03 to 10/31/04 11.22 0.36 25,779 4.12 4.12 2.91 (2.15) 175 11/1/02 to 10/31/03 11.18 (6.44) 31,102 4.54 4.54 2.99 (2.77) 329 11/1/01 to 10/31/02 11.96 11.01 24,449 4.22 4.51 3.00 (2.02) 456
The footnote legend is at the end of the financial highlights. See Notes to Financial Statements 105 PHOENIX OPPORTUNITIES TRUST FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
NET ASSET NET CAPITAL GAIN NET TOTAL DIVIDENDS DISTRIBUTIONS VALUE, INVESTMENT DISTRIBUTIONS REALIZED AND FROM FROM NET FROM NET BEGINNING INCOME RECEIVED FROM UNREALIZED INVESTMENT INVESTMENT REALIZED TOTAL OF PERIOD (LOSS) AFFILIATED FUNDS GAIN (LOSS) OPERATIONS INCOME GAINS DISTRIBUTIONS ==================================================================================================================================== - --------------------------- DIVERSIFIER PHOLIO FUND - --------------------------- CLASS A 8/1/07 to 9/30/07 $11.15 0.03(2) -- 0.69 0.72 (0.01) (0.06) (0.07) 8/1/06 to 7/31/07 10.63 0.18(2) 0.13(2) 0.41(9) 0.72 (0.20) --(5) (0.20) 11/30/05(6) to 7/31/06 10.00 0.08(2) 0.02(2) 0.57 0.67 (0.04) -- (0.04) CLASS C 8/1/07 to 9/30/07 $11.07 0.02(2) -- 0.68 0.70 (0.01) (0.06) (0.07) 8/1/06 to 7/31/07 10.58 0.11(2) 0.14(2) 0.38(9) 0.63 (0.14) --(5) (0.14) 11/30/05(6) to 7/31/06 10.00 0.03(2) 0.04(2) 0.54 0.61 (0.03) -- (0.03) - ---------------------------- WEALTH ACCUMULATOR PHOLIO - ---------------------------- CLASS A 8/1/07 to 9/30/07 $12.16 --(2)(5) -- 0.59 0.59 (0.04) (0.13) (0.17) 8/1/06 to 7/31/07 10.73 0.10(2) 0.76(2) 0.92 1.78 (0.32) (0.03) (0.35) 8/4/05(6) to 7/31/06 10.00 0.07(2) 0.11(2) 0.60 0.78 (0.05) -- (0.05) CLASS C 8/1/07 to 9/30/07 $12.09 (0.01)(2) -- 0.58 0.57 (0.04) (0.13) (0.17) 8/1/06 to 7/31/07 10.68 --(2)(5) 0.74(2) 0.94 1.68 (0.24) (0.03) (0.27) 8/4/05(6) to 7/31/06 10.00 (0.01)(2) 0.10(2) 0.61 0.70 (0.02) -- (0.02) - ------------------------------ WEALTH BUILDER PHOLIO(SM) FUND - ------------------------------ CLASS A 8/1/07 to 9/30/07 $12.91 0.02(2) -- 0.53 0.55 (0.03) (0.62) (0.65) 8/1/06 to 7/31/07 11.89 0.20(2) 0.60(2) 0.86 1.66 (0.42) (0.22) (0.64) 8/4/05 to 7/31/06 12.07 0.15(2) 0.12(2) 0.40 0.67 (0.16) (0.69) (0.85) 8/1/04 to 7/31/05 10.89 0.11(2) 0.07(2) 1.10 1.28 (0.10) --(5) (0.10) 8/1/03(6) to 7/31/04 10.00 0.12(2) 0.01(2) 0.86 0.99 (0.10) -- (0.10) CLASS C 8/1/07 to 9/30/07 $12.85 --(2)(5) -- 0.54 0.54 (0.03) (0.62) (0.65) 8/1/06 to 7/31/07 11.84 0.10(2) 0.60(2) 0.86 1.56 (0.33) (0.22) (0.55) 8/4/05 to 7/31/06 12.02 0.06(2) 0.12(2) 0.40 0.58 (0.07) (0.69) (0.76) 8/1/04 to 7/31/05 10.86 0.02(2) 0.07(2) 1.10 1.19 (0.03) --(5) (0.03) 8/1/03(6) to 7/31/04 10.00 0.04(2) 0.01(2) 0.85 0.90 (0.04) -- (0.04) - ------------------------------- WEALTH GUARDIAN PHOLIO(SM) FUND - ------------------------------- CLASS A 8/1/07 to 9/30/07 $12.02 0.02(2) -- 0.40 0.42 (0.05) (0.38) (0.43) 8/1/06 to 7/31/07 11.31 0.27(2) 0.46(2) 0.59 1.32 (0.43) (0.18) (0.61) 8/4/05 to 7/31/06 11.61 0.22(2) 0.10(2) 0.18 0.50 (0.23) (0.57) (0.80) 8/1/04 to 7/31/05 10.74 0.17 0.06 0.81 1.04 (0.17) --(5) (0.17) 8/1/03(6) to 7/31/04 10.00 0.17 --(5) 0.74 0.91 (0.17) -- (0.17) CLASS C 8/1/07 to 9/30/07 $12.00 0.01(2) -- 0.40 0.41 (0.05) (0.38) (0.43) 8/1/06 to 7/31/07 11.30 0.18(2) 0.46(2) 0.58 1.22 (0.34) (0.18) (0.52) 8/4/05 to 7/31/06 11.60 0.12(2) 0.10(2) 0.19 0.41 (0.14) (0.57) (0.71) 8/1/04 to 7/31/05 10.72 0.09 0.06 0.81 0.96 (0.08) --(5) (0.08) 8/1/03(6) to 7/31/04 10.00 0.12 0.01 0.70 0.83 (0.11) -- (0.11)
See Notes to Financial Statements 106
RATIO OF NET NET RATIO OF NET GROSS RATIO OF NET ASSET ASSETS, OPERATING OPERATING INVESTMENT CHANGE IN VALUE, END OF EXPENSES TO EXPENSES TO INCOME TO NET ASSET END OF TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET PORTFOLIO VALUE PERIOD RETURN(1) (000'S) ASSETS(8) ASSETS(8) ASSETS TURNOVER ==================================================================================================================================== - --------------------------- DIVERSIFIER PHOLIO FUND - --------------------------- CLASS A 8/1/07 to 9/30/07 0.65 $11.80 6.45%(4) $109,620 0.34%(3) 0.54%(3) 1.74%(3) 18%(4) 8/1/06 to 7/31/07 0.52 11.15 6.76 95,230 0.26 0.51 1.61 11 11/30/05(6) to 7/31/06 0.63 10.63 6.72(4) 1,231 0.20(3) 31.52(3) 1.11(3) 81(4) CLASS C 8/1/07 to 9/30/07 0.63 $11.70 6.32%(4) $ 68,343 1.09%(3) 1.29%(3) 0.99%(3) 18%(4) 8/1/06 to 7/31/07 0.49 11.07 6.01 60,669 1.01 1.26 0.93 11 11/30/05(6) to 7/31/06 0.58 10.58 6.16(4) 581 0.95(3) 46.88(3) 0.38(3) 81(4) - ---------------------------- WEALTH ACCUMULATOR PHOLIO - ---------------------------- CLASS A 8/1/07 to 9/30/07 0.42 $12.58 4.83%(4) $ 9,647 0.28%(3) 0.83%(3) 0.19%(3) 1%(4) 8/1/06 to 7/31/07 1.43 12.16 16.75 8,806 0.06 0.97 0.79 50 8/4/05(6) to 7/31/06 0.73 10.73 7.82(4) 3,208 0.09(3)(7) 7.43(3) 0.63(3) 13(4) CLASS C 8/1/07 to 9/30/07 0.40 $12.49 4.69%(4) $ 4,478 1.04%(3) 1.58%(3) (0.54)%(3) 1%(4) 8/1/06 to 7/31/07 1.41 12.09 15.85 3,818 0.80 1.79 0.04 50 8/4/05(6) to 7/31/06 0.68 10.68 6.97(4) 2,379 0.83(3)(7) 8.19(3) (0.12)(3) 13(4) - ------------------------------ WEALTH BUILDER PHOLIO(SM) FUND - ------------------------------ CLASS A 8/1/07 to 9/30/07 (0.10) $12.81 4.23%(4) $ 58,663 0.26%(3) 0.49%(3) 0.72%(3) 2%(4) 8/1/06 to 7/31/07 1.02 12.91 14.16 56,857 0.06 0.45 1.54 43 8/4/05 to 7/31/06 (0.18) 11.89 5.76 51,755 0.20(7) 0.45 1.25 74 8/1/04 to 7/31/05 1.18 12.07 11.76 47,934 0.40 0.45 0.93 4 8/1/03(6) to 7/31/04 0.89 10.89 9.89 29,566 0.40 0.77 1.11 -- CLASS C 8/1/07 to 9/30/07 (0.11) $12.74 4.17%(4) $77,181 1.01%(3) 1.24%(3) (0.03)%(3) 2%(4) 8/1/06 to 7/31/07 1.01 12.85 13.29 76,049 0.80 1.20 0.79 43 8/4/05 to 7/31/06 (0.18) 11.84 4.99 75,168 0.96(7) 1.19 0.48 74 8/1/04 to 7/31/05 1.16 12.02 11.01 84,281 1.15 1.20 0.19 4 8/1/03(6) to 7/31/04 0.86 10.86 9.03 58,012 1.15 1.47 0.34 -- - ------------------------------- WEALTH GUARDIAN PHOLIO(SM) FUND - ------------------------------- CLASS A 8/1/07 to 9/30/07 (0.01) $12.01 3.48%(4) $ 29,742 0.27%(3) 0.48%(3) 1.15%(3) 2%(4) 8/1/06 to 7/31/07 0.71 12.02 11.82 29,304 0.05 0.46 2.28 41 8/4/05 to 7/31/06 (0.30) 11.31 4.43 24,768 0.26(7) 0.56 1.92 67 8/1/04 to 7/31/05 0.87 11.61 9.74 20,696 0.52 0.65 1.56 5 8/1/03(6) to 7/31/04 0.74 10.74 9.15 10,182 0.52 1.35 1.92 1 CLASS C 8/1/07 to 9/30/07 (0.02) $11.98 3.40%(4) $ 32,320 1.01%(3) 1.23%(3) 0.39%(3) 2%(4) 8/1/06 to 7/31/07 0.70 12.00 10.90 32,286 0.80 1.21 1.53 41 8/4/05 to 7/31/06 (0.30) 11.30 3.63 33,776 1.03(7) 1.31 1.08 67 8/1/04 to 7/31/05 0.88 11.60 9.03 40,252 1.27 1.40 0.80 5 8/1/03(6) to 7/31/04 0.72 10.72 8.29 28,355 1.27 1.98 1.19 1
The footnote legend is at the end of the financial highlights. See Notes to Financial Statements 107 PHOENIX OPPORTUNITIES TRUST FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
NET ASSET NET NET TOTAL DIVIDENDS DISTRIBUTIONS VALUE, INVESTMENT REALIZED AND FROM FROM NET FROM NET BEGINNING INCOME UNREALIZED INVESTMENT INVESTMENT REALIZED RETURN OF TOTAL OF PERIOD (LOSS) GAIN (LOSS) OPERATIONS INCOME GAINS CAPITAL DISTRIBUTIONS ==================================================================================================================================== - ------------------------- BOND FUND - ------------------------- CLASS I 10/1/06 to 9/30/07 $10.36 0.46(2) (0.02) 0.44 (0.48) -- -- (0.48) 10/1/05 to 9/30/06 10.56 0.47(2) (0.08) 0.39 (0.44) (0.15) -- (0.59) 10/1/04 to 9/30/05 10.73 0.37(2) (0.11) 0.26 (0.37) (0.06) -- (0.43) 10/1/03 to 9/30/04 10.78 0.40(2) 0.08 0.48 (0.46) (0.07) -- (0.53) 10/1/02 to 9/30/03 10.39 0.41(2) 0.46 0.87 (0.42) (0.06) -- (0.48) CLASS A 10/1/06 to 9/30/07 $10.27 0.44(2) (0.05) 0.39 (0.45) -- -- (0.45) 10/1/05 to 9/30/06 10.46 0.43(2) (0.06) 0.37 (0.41) (0.15) -- (0.56) 10/1/04 to 9/30/05 10.63 0.34(2) (0.11) 0.23 (0.34) (0.06) -- (0.40) 10/1/03 to 9/30/04 10.68 0.36(2) 0.08 0.44 (0.42) (0.07) -- (0.49) 10/1/02 to 9/30/03 10.29 0.38(2) 0.45 0.83 (0.38) (0.06) -- (0.44) CLASS B 10/1/06 to 9/30/07 $10.07 0.35(2) (0.04) 0.31 (0.37) -- -- (0.37) 10/1/05 to 9/30/06 10.28 0.34(2) (0.06) 0.28 (0.34) (0.15) -- (0.49) 10/1/04 to 9/30/05 10.44 0.25(2) (0.09) 0.16 (0.26) (0.06) -- (0.32) 10/1/03 to 9/30/04 10.50 0.28(2) 0.08 0.36 (0.35) (0.07) -- (0.42) 10/1/02 to 9/30/03 10.13 0.30(2) 0.44 0.74 (0.31) (0.06) -- (0.37) CLASS C 10/1/06 to 9/30/07 $10.09 0.35(2) (0.03) 0.32 (0.37) -- -- (0.37) 10/1/05 to 9/30/06 10.30 0.34(2) (0.06) 0.28 (0.34) (0.15) -- (0.49) 10/1/04 to 9/30/05 10.46 0.25(2) (0.09) 0.16 (0.26) (0.06) -- (0.32) 10/1/03 to 9/30/04 10.52 0.28(2) 0.08 0.36 (0.35) (0.07) -- (0.42) 10/1/02 to 9/30/03 10.15 0.30(2) 0.44 0.74 (0.31) (0.06) -- (0.37) - ------------------------- CA TAX-EXEMPT BOND FUND - ------------------------- CLASS I 5/1/07 to 9/30/07 $12.25 0.20(2) (0.17) 0.03 (0.19) (0.01) -- (0.20) 9/29/06(6) to 4/30/07 12.43 0.28(2) (0.06) 0.22 (0.30) (0.10) -- (0.40) CLASS A 5/1/07 to 9/30/07 $12.26 0.19(2) (0.17) 0.02 (0.18) (0.01) -- (0.19) 5/1/06 to 4/30/07 12.19 0.47(2) 0.18 0.65 (0.48) (0.10) -- (0.58) 5/1/05 to 4/30/06 12.71 0.49(2) (0.39) 0.10 (0.49) (0.13) -- (0.62) 5/1/04 to 4/30/05 12.49 0.48(2) 0.30 0.78 (0.47) (0.09) -- (0.56) 5/1/03 to 4/30/04 12.99 0.48 (0.38) 0.10 (0.47) (0.13) -- (0.60) 5/1/02 to 4/30/03 12.82 0.50 0.51 1.01 (0.49) (0.35) -- (0.84) - ------------------------- CORE BOND FUND - ------------------------- CLASS A 11/1/06 to 9/30/07 $ 8.24 0.33(2) 0.11 0.44 (0.36) -- -- (0.36) 11/1/05 to 10/31/06 8.26 0.35(2) 0.02 0.37 (0.39) -- -- (0.39) 11/1/04 to 10/31/05 8.65 0.32(2) (0.29) 0.03 (0.42) -- -- (0.42) 11/1/03 to 10/31/04 8.76 0.37(2) (0.03) 0.34 (0.45) -- -- (0.45) 11/1/02 to 10/31/03 8.93 0.39(2) (0.04) 0.35 (0.52) -- -- (0.52) 11/1/01 to 10/31/02(12) 9.43 0.58 (0.49) 0.09 (0.59) -- -- (0.59)
See Notes to Financial Statements 108
RATIO OF NET NET RATIO OF NET GROSS RATIO OF NET ASSET ASSETS, OPERATING OPERATING INVESTMENT CHANGE IN VALUE, END OF EXPENSES TO EXPENSES TO INCOME TO NET ASSET END OF TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET PORTFOLIO VALUE PERIOD RETURN(1) (000'S) ASSETS ASSETS ASSETS TURNOVER ================================================================================================================================== - ------------------------- BOND FUND - ------------------------- CLASS I 10/1/06 to 9/30/07 (0.04) $10.32 4.32% $ 52,044 0.87% 0.87% 4.49% 266% 10/1/05 to 9/30/06 (0.20) 10.36 3.84 63,156 0.82 0.82 4.59 275 10/1/04 to 9/30/05 (0.17) 10.56 2.44 30,126 0.89 0.89 3.45 221 10/1/03 to 9/30/04 (0.05) 10.73 4.54 39,476 0.80 0.80 3.72 136 10/1/02 to 9/30/03 0.39 10.78 8.57 35,966 0.86 0.86 3.93 244 CLASS A 10/1/06 to 9/30/07 (0.06) $10.21 4.09% $ 29,077 1.12% 1.12% 4.25% 266% 10/1/05 to 9/30/06 (0.19) 10.27 3.51 28,022 1.11 1.15 4.21 275 10/1/04 to 9/30/05 (0.17) 10.46 2.14 29,501 1.15 1.19 3.20 221 10/1/03 to 9/30/04 (0.05) 10.63 4.33 29,864 1.11 1.11 3.37 136 10/1/02 to 9/30/03 0.39 10.68 8.28 21,263 1.15 1.21 3.65 244 CLASS B 10/1/06 to 9/30/07 (0.06) $10.01 3.26% $ 4,294 1.87% 1.87% 3.49% 266% 10/1/05 to 9/30/06 (0.21) 10.07 2.80 5,459 1.88 2.30 3.43 275 10/1/04 to 9/30/05 (0.16) 10.28 1.36 6,706 1.90 2.30 2.45 221 10/1/03 to 9/30/04 (0.06) 10.44 3.54 7,375 1.90 2.07 2.69 136 10/1/02 to 9/30/03 0.37 10.50 7.43 10,218 1.90 2.10 2.91 244 CLASS C 10/1/06 to 9/30/07 (0.05) $10.04 3.25% $ 1,534 1.87% 1.87% 3.50% 266% 10/1/05 to 9/30/06 (0.21) 10.09 2.79 1,401 1.88 3.44 3.41 275 10/1/04 to 9/30/05 (0.16) 10.30 1.35 2,038 1.90 2.90 2.44 221 10/1/03 to 9/30/04 (0.06) 10.46 3.53 3,829 1.90 2.37 2.64 136 10/1/02 to 9/30/03 0.37 10.52 7.42 4,754 1.90 2.41 2.91 244 - ------------------------- CA TAX-EXEMPT BOND FUND - ------------------------- CLASS I 5/1/07 to 9/30/07 (0.17) $12.08 0.30%(4) $ 28,277 0.64%(3) 0.80%(3) 3.99%(3) 4%(4) 9/29/06(6) to 4/30/07 (0.18) 12.25 1.79(4) 28,952 0.64(3) 0.79(3) 3.90(3) 19(4) CLASS A 5/1/07 to 9/30/07 (0.17) $12.09 0.18%(4) $ 39,094 0.88%(3) 1.05%(3) 3.74%(3) 4%(4) 5/1/06 to 4/30/07 0.07 12.26 5.40 42,243 0.87 1.10 3.81 19 5/1/05 to 4/30/06 (0.52) 12.19 0.71 46,214 1.02(7) 1.28 3.89 8 5/1/04 to 4/30/05 0.22 12.71 6.48 53,113 1.19 1.19 3.78 11 5/1/03 to 4/30/04 (0.50) 12.49 0.71 57,334 1.19 1.19 3.69 11 5/1/02 to 4/30/03 0.17 12.99 8.19 68,109 1.09 1.09 3.84 27 - ------------------------- CORE BOND FUND - ------------------------- CLASS A 11/1/06 to 9/30/07 0.08 $ 8.32 5.44%(4) $ 63,165 1.05%(3) 1.24%(3) 4.33%(3) 46%(4) 11/1/05 to 10/31/06 (0.02) 8.24 4.59 67,393 1.08(7) 1.24 4.28 48 11/1/04 to 10/31/05 (0.39) 8.26 0.34 77,880 1.25 1.25 3.73 65 11/1/03 to 10/31/04 (0.11) 8.65 3.95 92,278 1.18 1.18 4.29 45 11/1/02 to 10/31/03 (0.17) 8.76 3.96 104,092 1.16 1.16 4.37 101 11/1/01 to 10/31/02(12) (0.50) 8.93 1.07 115,184 1.15 1.15 5.40 70
The footnote legend is at the end of the financial highlights. See Notes to Financial Statements 109 PHOENIX OPPORTUNITIES TRUST FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
NET ASSET NET NET TOTAL DIVIDENDS DISTRIBUTIONS VALUE, INVESTMENT REALIZED AND FROM FROM NET FROM NET BEGINNING INCOME UNREALIZED INVESTMENT INVESTMENT REALIZED RETURN OF TOTAL OF PERIOD (LOSS) GAIN (LOSS) OPERATIONS INCOME GAINS CAPITAL DISTRIBUTIONS ==================================================================================================================================== - ------------------------- CORE BOND FUND (CONTINUED) - ------------------------- CLASS B 11/1/06 to 9/30/07 $ 8.18 0.27(2) 0.12 0.39 (0.31) -- -- (0.31) 11/1/05 to 10/31/06 8.21 0.29(2) 0.01 0.30 (0.33) -- -- (0.33) 11/1/04 to 10/31/05 8.59 0.25(2) (0.27) (0.02) (0.36) -- -- (0.36) 11/1/03 to 10/31/04 8.71 0.31(2) (0.05) 0.26 (0.38) -- -- (0.38) 11/1/02 to 10/31/03 8.89 0.32(2) (0.05) 0.27 (0.45) -- -- (0.45) 11/1/01 to 10/31/02(12) 9.39 0.51 (0.49) 0.02 (0.52) -- -- (0.52) CLASS C 11/1/06 to 9/30/07 $ 8.21 0.27(2) 0.12 0.39 (0.31) -- -- (0.31) 11/1/05 to 10/31/06 8.23 0.29(2) 0.02 0.31 (0.33) -- -- (0.33) 11/1/04 to 10/31/05 8.62 0.25(2) (0.28) (0.03) (0.36) -- -- (0.36) 11/1/03 to 10/31/04 8.73 0.31(2) (0.04) 0.27 (0.38) -- -- (0.38) 11/1/02 to 10/31/03 8.91 0.32(2) (0.05) 0.27 (0.45) -- -- (0.45) 11/1/01 to 10/31/02(12) 9.41 0.51 (0.49) 0.02 (0.52) -- -- (0.52) - ------------------------- EMERGING MARKETS BOND FUND - ------------------------- CLASS A 12/1/06 to 9/30/07 $ 8.85 0.43(2) (0.09) 0.34 (0.45) -- -- (0.45) 12/1/05 to 11/30/06 8.56 0.47(2) 0.31 0.78 (0.49) -- -- (0.49) 12/1/04 to 11/30/05 8.25 0.49(2) 0.37 0.86 (0.55) -- -- (0.55) 12/1/03 to 11/30/04 8.07 0.47(2) 0.29 0.76 (0.58) -- -- (0.58) 12/1/02 to 11/30/03(11) 6.80 0.67 1.22 1.89 (0.62) -- -- (0.62) 12/1/01 to 11/30/02(11)(12) 6.58 0.65(2) 0.28 0.93 (0.57) -- (0.14) (0.71) CLASS B 12/1/06 to 9/30/07 $ 8.63 0.36(2) (0.08) 0.28 (0.40) -- -- (0.40) 12/1/05 to 11/30/06 8.36 0.40(2) 0.30 0.70 (0.43) -- -- (0.43) 12/1/04 to 11/30/05 8.07 0.42(2) 0.36 0.78 (0.49) -- -- (0.49) 12/1/03 to 11/30/04 7.91 0.40(2) 0.28 0.68 (0.52) -- -- (0.52) 12/1/02 to 11/30/03(11) 6.68 0.58 1.22 1.80 (0.57) -- -- (0.57) 12/1/01 to 11/30/02(11)(12) 6.47 0.59(2) 0.28 0.87 (0.53) -- (0.13) (0.66) CLASS C 12/1/06 to 9/30/07 $ 8.68 0.36(2) (0.07) 0.29 (0.40) -- -- (0.40) 12/1/05 to 11/30/06 8.41 0.40(2) 0.30 0.70 (0.43) -- -- (0.43) 12/1/04 to 11/30/05 8.12 0.42(2) 0.36 0.78 (0.49) -- -- (0.49) 12/1/03 to 11/30/04 7.95 0.40(2) 0.29 0.69 (0.52) -- -- (0.52) 12/1/02 to 11/30/03(11) 6.73 0.58 1.21 1.79 (0.57) -- -- (0.57) 12/1/01 to 11/30/02(11)(12) 6.51 0.60(2) 0.28 0.88 (0.53) -- (0.13) (0.66) - ------------------------- HIGH YIELD FUND - ------------------------- CLASS A 11/1/06 to 9/30/07 $ 4.91 0.30(2) (0.01) 0.29 (0.31) -- -- (0.31) 11/1/05 to 10/31/06 4.88 0.31(2) 0.05 0.36 (0.33) -- -- (0.33) 11/1/04 to 10/31/05 5.11 0.31(2) (0.19) 0.12 (0.35) -- -- (0.35) 11/1/03 to 10/31/04 5.02 0.33(2) 0.11 0.44 (0.35) -- -- (0.35) 11/1/02 to 10/31/03(11) 4.51 0.35(2) 0.54 0.89 (0.38) -- -- (0.38) 11/1/01 to 10/31/02(11)(12) 5.19 0.45(2) (0.65) (0.20) (0.45) -- (0.03) (0.48)
See Notes to Financial Statements 110
RATIO OF NET NET RATIO OF NET GROSS RATIO OF NET ASSET ASSETS, OPERATING OPERATING INVESTMENT CHANGE IN VALUE, END OF EXPENSES TO EXPENSES TO INCOME TO NET ASSET END OF TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET PORTFOLIO VALUE PERIOD RETURN(1) (000'S) ASSETS ASSETS ASSETS TURNOVER ================================================================================================================================== - ------------------------- CORE BOND FUND (CONTINUED) - ------------------------- CLASS B 11/1/06 to 9/30/07 0.08 $ 8.26 4.68%(4) $ 1,604 1.80%(3) 2.01%(3) 3.58%(3) 46%(4) 11/1/05 to 10/31/06 (0.03) 8.18 3.72 1,749 1.84(7) 1.98 3.54 48 11/1/04 to 10/31/05 (0.38) 8.21 (0.29) 2,390 2.00 2.00 2.97 65 11/1/03 to 10/31/04 (0.12) 8.59 3.10 3,668 1.93 1.93 3.57 45 11/1/02 to 10/31/03 (0.18) 8.71 3.08 6,628 1.91 1.91 3.62 101 11/1/01 to 10/31/02(12) (0.50) 8.89 0.31 9,471 1.90 1.90 4.65 70 CLASS C 11/1/06 to 9/30/07 0.08 $ 8.29 4.76%(4) $ 1,225 1.80%(3) 1.99%(3) 3.58%(3) 46%(4) 11/1/05 to 10/31/06 (0.02) 8.21 3.84 1,299 1.83(7) 1.99 3.54 48 11/1/04 to 10/31/05 (0.39) 8.23 (0.40) 1,273 2.00 2.00 2.99 65 11/1/03 to 10/31/04 (0.11) 8.62 3.21 1,298 1.93 1.93 3.57 45 11/1/02 to 10/31/03 (0.18) 8.73 3.06 1,385 1.91 1.91 3.63 101 11/1/01 to 10/31/02(12) (0.50) 8.91 0.31 1,212 1.90 1.90 4.66 70 - ------------------------- EMERGING MARKETS BOND FUND - ------------------------- CLASS A 12/1/06 to 9/30/07 (0.11) $ 8.74 3.91%(4) $ 33,225 1.65%(3) 1.65%(3) 5.77%(3) 133%(4) 12/1/05 to 11/30/06 0.29 8.85 9.39 30,489 1.65 1.65 5.47 139 12/1/04 to 11/30/05 0.31 8.56 10.78 27,450 1.67 1.67 5.83 33 12/1/03 to 11/30/04 0.18 8.25 9.86 22,583 1.53 1.53 5.75 140 12/1/02 to 11/30/03(11) 1.27 8.07 28.94 35,910 1.49(10) 1.49 7.73 491 12/1/01 to 11/30/02(11)(12) 0.22 6.80 14.55 31,401 1.58(10) 1.58 9.47 588 CLASS B 12/1/06 to 9/30/07 (0.12) $ 8.51 3.26%(4) $ 5,094 2.37%(3) 2.37%(3) 4.99%(3) 133%(4) 12/1/05 to 11/30/06 0.27 8.63 8.60 9,075 2.41 2.41 4.69 139 12/1/04 to 11/30/05 0.29 8.36 9.94 17,140 2.43 2.43 5.08 33 12/1/03 to 11/30/04 0.16 8.07 8.98 26,853 2.29 2.29 4.99 140 12/1/02 to 11/30/03(11) 1.23 7.91 27.91 44,671 2.24(10) 2.24 7.02 491 12/1/01 to 11/30/02(11)(12) 0.21 6.68 13.80 46,865 2.33(10) 2.33 8.78 588 CLASS C 12/1/06 to 9/30/07 (0.11) $ 8.57 3.36%(4) $ 1,262 2.40%(3) 2.40%(3) 5.02%(3) 133%(4) 12/1/05 to 11/30/06 0.27 8.68 8.55 1,299 2.40 2.40 4.71 139 12/1/04 to 11/30/05 0.29 8.41 9.88 2,024 2.43 2.43 5.08 33 12/1/03 to 11/30/04 0.17 8.12 9.06 2,115 2.29 2.29 4.98 140 12/1/02 to 11/30/03(11) 1.22 7.95 27.54 3,418 2.24 2.24 7.06 491 12/1/01 to 11/30/02(11)(12) 0.22 6.73 13.88 2,783 2.33 2.33 8.71 588 - ------------------------- HIGH YIELD FUND - ------------------------- CLASS A 11/1/06 to 9/30/07 (0.02) $ 4.89 6.06%(4) $125,200 1.39%(3) 1.39%(3) 6.59%(3) 102%(4) 11/1/05 to 10/31/06 0.03 4.91 7.52 132,408 1.37 1.37 6.25 161 11/1/04 to 10/31/05 (0.23) 4.88 2.37 144,060 1.36 1.36 6.23 59 11/1/03 to 10/31/04 0.09 5.11 8.85 174,527 1.32 1.32 6.57 99 11/1/02 to 10/31/03(11) 0.51 5.02 20.54 192,428 1.32 1.32 7.17 176 11/1/01 to 10/31/02(11)(12) (0.68) 4.51 (4.33) 183,028 1.33(10) 1.33 9.06 114
The footnote legend is at the end of the financial highlights. See Notes to Financial Statements 111 PHOENIX OPPORTUNITIES TRUST FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
NET ASSET NET NET TOTAL DIVIDENDS DISTRIBUTIONS VALUE, INVESTMENT REALIZED AND FROM FROM NET FROM NET BEGINNING INCOME UNREALIZED INVESTMENT INVESTMENT REALIZED RETURN OF TOTAL OF PERIOD (LOSS) GAIN (LOSS) OPERATIONS INCOME GAINS CAPITAL DISTRIBUTIONS ==================================================================================================================================== - --------------------------- HIGH YIELD FUND (CONTINUED) - --------------------------- CLASS B 11/1/06 to 9/30/07 $ 4.84 0.26(2) (0.01) 0.25 (0.28) -- -- (0.28) 11/1/05 to 10/31/06 4.81 0.26(2) 0.06 0.32 (0.29) -- -- (0.29) 11/1/04 to 10/31/05 5.05 0.27(2) (0.20) 0.07 (0.31) -- -- (0.31) 11/1/03 to 10/31/04 4.96 0.29(2) 0.11 0.40 (0.31) -- -- (0.31) 11/1/02 to 10/31/03(11) 4.47 0.31(2) 0.52 0.83 (0.34) -- -- (0.34) 11/1/01 to 10/31/02(11)(12) 5.14 0.41(2) (0.64) (0.23) (0.41) -- (0.03) (0.44) CLASS C 11/1/06 to 9/30/07 $ 4.87 0.26(2) (0.01) 0.25 (0.28) -- -- (0.28) 11/1/05 to 10/31/06 4.84 0.27(2) 0.05 0.32 (0.29) -- -- (0.29) 11/1/04 to 10/31/05 5.07 0.27(2) (0.19) 0.08 (0.31) -- -- (0.31) 11/1/03 to 10/31/04 4.99 0.29(2) 0.10 0.39 (0.31) -- -- (0.31) 11/1/02 to 10/31/03(11) 4.49 0.31(2) 0.53 0.84 (0.34) -- -- (0.34) 11/1/01 to 10/31/02(11)(12) 5.16 0.41(2) (0.64) (0.23) (0.41) -- (0.03) (0.44) - ------------------------- MONEY MARKET FUND - ------------------------- CLASS A 11/1/06 to 9/30/07 $ 1.00 0.04 -- 0.04 (0.04) -- -- (0.04) 11/1/05 to 10/31/06 1.00 0.04 -- 0.04 (0.04) -- -- (0.04) 11/1/04 to 10/31/05 1.00 0.02 -- 0.02 (0.02) -- -- (0.02) 11/1/03 to 10/31/04 1.00 0.007 -- 0.007 (0.007) -- -- (0.007) 11/1/02 to 10/31/03 1.00 0.010 -- 0.010 (0.010) -- -- (0.010) 11/1/01 to 10/31/02 1.00 0.014 -- 0.014 (0.014) -- -- (0.014) - ------------------------------- MULTI-SECTOR FIXED INCOME FUND - ------------------------------- CLASS A 11/1/06 to 9/30/07 $10.88 0.56(2) (0.03) 0.53 (0.52) -- -- (0.52) 11/1/05 to 10/31/06 10.63 0.59(2) 0.21 0.80 (0.55) -- -- (0.55) 11/1/04 to 10/31/05 11.16 0.59(2) (0.40) 0.19 (0.72) -- -- (0.72) 11/1/03 to 10/31/04 10.85 0.69(2) 0.34 1.03 (0.72) -- -- (0.72) 11/1/02 to 10/31/03(11) 9.82 0.71 0.99 1.70 (0.67) -- -- (0.67) 11/1/01 to 10/31/02(11)(12) 10.03 0.72 (0.18) 0.54 (0.74) -- (0.01) (0.75) CLASS B 11/1/06 to 9/30/07 $10.87 0.48(2) (0.02) 0.46 (0.45) -- -- (0.45) 11/1/05 to 10/31/06 10.61 0.51(2) 0.22 0.73 (0.47) -- -- (0.47) 11/1/04 to 10/31/05 11.13 0.50(2) (0.40) 0.10 (0.62) -- -- (0.62) 11/1/03 to 10/31/04 10.82 0.61(2) 0.33 0.94 (0.63) -- -- (0.63) 11/1/02 to 10/31/03(11) 9.80 0.63 0.98 1.61 (0.59) -- -- (0.59) 11/1/01 to 10/31/02(11)(12) 10.01 0.64 (0.18) 0.46 (0.66) -- (0.01) (0.67) CLASS C 11/1/06 to 9/30/07 $10.93 0.48(2) (0.02) 0.46 (0.45) -- -- (0.45) 11/1/05 to 10/31/06 10.67 0.51(2) 0.22 0.73 (0.47) -- -- (0.47) 11/1/04 to 10/31/05 11.18 0.51(2) (0.40) 0.11 (0.62) -- -- (0.62) 11/1/03 to 10/31/04 10.87 0.61(2) 0.33 0.94 (0.63) -- -- (0.63) 11/1/02 to 10/31/03(11) 9.84 0.64 0.98 1.62 (0.59) -- -- (0.59) 11/1/01 to 10/31/02(11)(12) 10.04 0.65 (0.18) 0.47 (0.66) -- (0.01) (0.67)
See Notes to Financial Statements 112
RATIO OF NET NET RATIO OF NET GROSS RATIO OF NET ASSET ASSETS, OPERATING OPERATING INVESTMENT CHANGE IN VALUE, END OF EXPENSES TO EXPENSES TO INCOME TO NET ASSET END OF TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET PORTFOLIO VALUE PERIOD RETURN(1) (000'S) ASSETS ASSETS ASSETS TURNOVER ================================================================================================================================== - --------------------------- HIGH YIELD FUND (CONTINUED) - --------------------------- CLASS B 11/1/06 to 9/30/07 (0.03) $ 4.81 5.22%(4) $ 2,597 2.13%(3) 2.13%(3) 5.78%(3) 102%(4) 11/1/05 to 10/31/06 0.03 4.84 6.83 4,595 2.12 2.12 5.46 161 11/1/04 to 10/31/05 (0.24) 4.81 1.46 7,791 2.11 2.11 5.47 59 11/1/03 to 10/31/04 0.09 5.05 8.18 14,574 2.07 2.07 5.90 99 11/1/02 to 10/31/03(11) 0.49 4.96 19.39 22,499 2.07 2.07 6.43 176 11/1/01 to 10/31/02(11)(12) (0.67) 4.47 (4.88) 22,074 2.08(10) 2.08 8.32 114 CLASS C 11/1/06 to 9/30/07 (0.03) $ 4.84 5.20%(4) $ 2,081 2.14%(3) 2.14%(3) 5.89%(3) 102%(4) 11/1/05 to 10/31/06 0.03 4.87 6.80 1,585 2.12 2.12 5.48 161 11/1/04 to 10/31/05 (0.23) 4.84 1.66 1,758 2.11 2.11 5.48 59 11/1/03 to 10/31/04 0.08 5.07 8.14 1,990 2.07 2.07 5.87 99 11/1/02 to 10/31/03(11) 0.50 4.99 19.30 2,877 2.07 2.07 6.43 176 11/1/01 to 10/31/02(11)(12) (0.67) 4.49 (4.88) 1,921 2.08(10) 2.08 8.28 114 - ------------------------- MONEY MARKET FUND - ------------------------- CLASS A 11/1/06 to 9/30/07 -- $ 1.00 4.22%(4) $ 96,819 0.86%(3) 0.86%(3) 4.55%(3) -- 11/1/05 to 10/31/06 -- 1.00 4.04 99,779 0.84 0.90 3.95 -- 11/1/04 to 10/31/05 -- 1.00 2.00 111,395 0.85 0.89 1.94 -- 11/1/03 to 10/31/04 -- 1.00 0.66 139,996 0.65 0.92 0.65 -- 11/1/02 to 10/31/03 -- 1.00 1.00 156,098 0.37 0.87 1.00 -- 11/1/01 to 10/31/02 -- 1.00 1.38 184,390 0.79 0.86 1.37 -- - ------------------------------- MULTI-SECTOR FIXED INCOME FUND - ------------------------------- CLASS A 11/1/06 to 9/30/07 0.01 $10.89 4.95%(4) $113,458 1.19%(3) 1.19%(3) 5.55%(3) 92%(4) 11/1/05 to 10/31/06 0.25 10.88 7.74 113,362 1.17 1.17 5.52 96 11/1/04 to 10/31/05 (0.53) 10.63 1.73 113,885 1.20 1.20 5.36 136 11/1/03 to 10/31/04 0.31 11.16 9.78 116,079 1.18 1.18 6.30 156 11/1/02 to 10/31/03(11) 1.03 10.85 17.73 113,345 1.24 1.24 6.68 204 11/1/01 to 10/31/02(11)(12) (0.21) 9.82 5.52 107,782 1.26(10) 1.26 7.14 156 CLASS B 11/1/06 to 9/30/07 0.01 $10.88 4.25%(4) $ 14,205 1.94%(3) 1.94%(3) 4.80%(3) 92% 11/1/05 to 10/31/06 0.26 10.87 7.05 14,147 1.92 1.92 4.78 96 11/1/04 to 10/31/05 (0.52) 10.61 0.91 16,879 1.95 1.95 4.61 136 11/1/03 to 10/31/04 0.31 11.13 8.99 21,554 1.93 1.93 5.56 156 11/1/02 to 10/31/03(11) 1.02 10.82 16.84 26,754 1.99 1.99 5.94 204 11/1/01 to 10/31/02(11)(12) (0.21) 9.80 4.74 28,982 2.01(10) 2.01 6.41 156 CLASS C 11/1/06 to 9/30/07 0.01 $10.94 4.22%(4) $ 20,677 1.94%(3) 1.94%(3) 4.81%(3) 92%(4) 11/1/05 to 10/31/06 0.26 10.93 7.00 17,222 1.91 1.91 4.77 96 11/1/04 to 10/31/05 (0.51) 10.67 0.99 15,175 1.95 1.95 4.62 136 11/1/03 to 10/31/04 0.31 11.18 8.95 10,941 1.93 1.93 5.56 156 11/1/02 to 10/31/03(11) 1.03 10.87 16.99 8,902 2.00(10) 2.00 5.93 204 11/1/01 to 10/31/02(11)(12) (0.20) 9.84 4.71 5,922 2.01(10) 2.01 6.39 156
The footnote legend is at the end of the financial highlights. See Notes to Financial Statements 113 PHOENIX OPPORTUNITIES TRUST FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
NET ASSET NET NET TOTAL DIVIDENDS DISTRIBUTIONS VALUE, INVESTMENT REALIZED AND FROM FROM NET FROM NET BEGINNING INCOME UNREALIZED INVESTMENT INVESTMENT REALIZED RETURN OF TOTAL OF PERIOD (LOSS) GAIN (LOSS) OPERATIONS INCOME GAINS CAPITAL DISTRIBUTIONS ==================================================================================================================================== - -------------------------------- INTERNATIONAL STRATEGIES FUND - -------------------------------- CLASS A 12/1/06 to 9/30/07 $13.76 0.16 2.16 2.32 (0.20) -- -- (0.20) 12/1/05 to 11/30/06 10.96 0.14 2.83 2.97 (0.17) -- -- (0.17) 12/1/04 to 11/30/05 9.84 0.11 1.21 1.32 (0.20) -- -- (0.20) 12/1/03 to 11/30/04 8.21 0.11 1.70 1.81 (0.18) -- -- (0.18) 12/1/02 to 11/30/03 7.11 0.06 1.04 1.10 -- -- -- -- 12/1/01 to 11/30/02 7.92 0.02 (0.83) (0.81) -- -- -- -- CLASS B 12/1/06 to 9/30/07 $12.63 0.05 1.98 2.03 (0.10) -- -- (0.10) 12/1/05 to 11/30/06 10.04 0.05 2.59 2.64 (0.05) -- -- (0.05) 12/1/04 to 11/30/05 9.04 0.04 1.10 1.14 (0.14) -- -- (0.14) 12/1/03 to 11/30/04 7.56 0.04 1.57 1.61 (0.13) -- -- (0.13) 12/1/02 to 11/30/03 6.60 0.01 0.95 0.96 -- -- -- -- 12/1/01 to 11/30/02 7.40 (0.04) (0.76) (0.80) -- -- -- -- CLASS C 12/1/06 to 9/30/07 $12.59 0.05 1.97 2.02 (0.10) -- -- (0.10) 12/1/05 to 11/30/06 10.00 0.05 2.59 2.64 (0.05) -- -- (0.05) 12/1/04 to 11/30/05 9.01 0.04 1.09 1.13 (0.14) -- -- (0.14) 12/1/03 to 11/30/04 7.54 0.04 1.56 1.60 (0.13) -- -- (0.13) 12/1/02 to 11/30/03 6.56 0.01 0.97 0.98 -- -- -- -- 12/1/01 to 11/30/02 7.37 (0.04) (0.77) (0.81) -- -- -- -- - -------------------------- WORLDWIDE STRATEGIES FUND - -------------------------- CLASS A 7/1/07 to 9/30/07 $12.15 0.02 0.20 0.22 (0.08) (0.70) -- (0.78) 7/1/06 to 6/30/07 9.86 0.11 2.30 2.41 (0.12) -- -- (0.12) 7/1/05 to 6/30/06 8.38 0.07 1.51 1.58 (0.10) -- -- (0.10) 7/1/04 to 6/30/05 7.72 0.08 0.68 0.76 (0.10) -- -- (0.10) 7/1/03 to 6/30/04 6.37 0.03 1.41 1.44 (0.09) -- -- (0.09) 7/1/02 to 6/30/03 7.03 0.05 (0.71) (0.66) -- -- -- -- CLASS B 7/1/07 to 9/30/07 $11.04 --(5) 0.18 0.18 (0.04) (0.70) -- (0.74) 7/1/06 to 6/30/07 8.98 0.02 2.10 2.12 (0.06) -- -- (0.06) 7/1/05 to 6/30/06 7.65 --(5) 1.37 1.37 (0.04) -- -- (0.04) 7/1/04 to 6/30/05 7.05 0.02 0.63 0.65 (0.05) -- -- (0.05) 7/1/03 to 6/30/04 5.81 (0.02) 1.28 1.26 (0.02) -- -- (0.02) 7/1/02 to 6/30/03 6.46 --(5) (0.65) (0.65) -- -- -- -- CLASS C 7/1/07 to 9/30/07 $11.01 --(5) 0.17 0.17 (0.04) (0.70) -- (0.74) 7/1/06 to 6/30/07 8.95 0.02 2.10 2.12 (0.06) -- -- (0.06) 7/1/05 to 6/30/06 7.62 --(5) 1.37 1.37 (0.04) -- -- (0.04) 7/1/04 to 6/30/05 7.03 0.02 0.62 0.64 (0.05) -- -- (0.05) 7/1/03 to 6/30/04 5.80 (0.01) 1.27 1.26 (0.03) -- -- (0.03) 7/1/02 to 6/30/03 6.45 (0.01) (0.64) (0.65) -- -- -- --
See Notes to Financial Statements 114
RATIO OF NET NET RATIO OF NET GROSS RATIO OF NET ASSET ASSETS, OPERATING OPERATING INVESTMENT CHANGE IN VALUE, END OF EXPENSES TO EXPENSES TO INCOME TO NET ASSET END OF TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET PORTFOLIO VALUE PERIOD RETURN(1) (000'S) ASSETS ASSETS ASSETS TURNOVER ================================================================================================================================== - -------------------------------- INTERNATIONAL STRATEGIES FUND - -------------------------------- CLASS A 12/1/06 to 9/30/07 2.12 $15.88 16.91%(4) $ 95,453 1.62%(3) 1.62%(3) 1.27%(3) 69%(4) 12/1/05 to 11/30/06 2.80 13.76 27.39 83,849 1.60 1.68 1.16 86 12/1/04 to 11/30/05 1.12 10.96 13.61 71,335 1.79 1.89 1.06 142 12/1/03 to 11/30/04 1.63 9.84 22.36 57,946 1.83 1.83 1.23 50 12/1/02 to 11/30/03 1.10 8.21 15.47 51,664 2.02 2.02 0.90 38 12/1/01 to 11/30/02 (0.81) 7.11 (10.23) 52,234 1.90 1.90 0.19 33 CLASS B 12/1/06 to 9/30/07 1.93 $14.56 16.21%(4) $ 6,594 2.37%(3) 2.37%(3) 0.47%(3) 69%(4) 12/1/05 to 11/30/06 2.59 12.63 26.43 6,575 2.35 2.43 0.42 86 12/1/04 to 11/30/05 1.00 10.04 12.74 6,008 2.55 2.63 0.43 142 12/1/03 to 11/30/04 1.48 9.04 21.52 6,809 2.58 2.58 0.45 50 12/1/02 to 11/30/03 0.96 7.56 14.55 7,377 2.78 2.78 0.14 38 12/1/01 to 11/30/02 (0.80) 6.60 (10.81) 8,562 2.65 2.65 (0.56) 33 CLASS C 12/1/06 to 9/30/07 1.92 $14.51 16.18%(4) $ 2,557 2.37%(3) 2.37%(3) 0.47%(3) 69%(4) 12/1/05 to 11/30/06 2.59 12.59 26.54 2,371 2.35 2.43 0.48 86 12/1/04 to 11/30/05 0.99 10.00 12.67 1,595 2.55 2.64 0.39 142 12/1/03 to 11/30/04 1.47 9.01 21.45 1,286 2.58 2.58 0.48 50 12/1/02 to 11/30/03 0.98 7.54 14.94 1,029 2.78 2.78 0.14 38 12/1/01 to 11/30/02 (0.81) 6.56 (10.99) 1,017 2.65 2.65 (0.56) 33 - -------------------------- WORLDWIDE STRATEGIES FUND - -------------------------- CLASS A 7/1/07 to 9/30/07 (0.56) $11.59 1.93%(4) $116,983 1.60%(3) 1.60%(3) 0.59%(3) 15%(4) 7/1/06 to 6/30/07 2.29 12.15 24.61 117,709 1.61 1.64 1.01 74 7/1/05 to 6/30/06 1.48 9.86 18.90 102,783 1.60 1.70 0.76 124 7/1/04 to 6/30/05 0.66 8.38 9.80 100,469 1.57 1.57 0.97 49 7/1/03 to 6/30/04 1.35 7.72 22.65 107,520 1.62 1.62 0.46 122 7/1/02 to 6/30/03 (0.66) 6.37 (9.39) 98,135 1.73 1.73 0.81 160 CLASS B 7/1/07 to 9/30/07 (0.56) $10.48 1.65%(4) $ 4,945 2.35%(3) 2.35%(3) (0.15)%(3) 15%(4) 7/1/06 to 6/30/07 2.06 11.04 23.76 5,074 2.36 2.39 0.22 74 7/1/05 to 6/30/06 1.33 8.98 17.92 5,395 2.35 2.45 0.01 124 7/1/04 to 6/30/05 0.60 7.65 9.14 5,096 2.32 2.32 0.23 49 7/1/03 to 6/30/04 1.24 7.05 21.78 5,987 2.37 2.37 (0.34) 122 7/1/02 to 6/30/03 (0.65) 5.81 (10.20) 6,730 2.48 2.48 0.04 160 CLASS C 7/1/07 to 9/30/07 (0.57) $10.44 1.67%(4) $ 1,857 2.35%(3) 2.35%(3) (0.15)%(3) 15%(4) 7/1/06 to 6/30/07 2.06 11.01 23.74 1,838 2.36 2.38 0.23 74 7/1/05 to 6/30/06 1.33 8.95 17.99 2,826 2.35 2.45 (0.03) 124 7/1/04 to 6/30/05 0.59 7.62 9.03 2,876 2.32 2.32 0.22 49 7/1/03 to 6/30/04 1.23 7.03 21.66 3,306 2.37 2.37 (0.18) 122 7/1/02 to 6/30/03 (0.65) 5.80 (10.08) 2,407 2.48 2.48 (0.10) 160
The footnote legend is at the end of the financial highlights. See Notes to Financial Statements 115 PHOENIX OPPORTUNITIES TRUST FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
NET ASSET NET NET TOTAL DIVIDENDS DISTRIBUTIONS VALUE, INVESTMENT REALIZED AND FROM FROM NET FROM NET BEGINNING INCOME UNREALIZED INVESTMENT INVESTMENT REALIZED RETURN OF TOTAL OF PERIOD (LOSS) GAIN (LOSS) OPERATIONS INCOME GAINS CAPITAL DISTRIBUTIONS ==================================================================================================================================== - -------------------------- GROWTH OPPORTUNITIES FUND - -------------------------- CLASS A(13) 10/1/06 to 9/30/07 $12.22 (0.09)(2) 3.85 3.76 -- -- -- -- 10/1/05 to 9/30/06 11.68 (0.07)(2) 0.61 0.54 -- -- -- -- 10/1/04 to 9/30/05 9.88 (0.07)(2) 1.87 1.80 -- -- -- -- 10/1/03 to 9/30/04 9.35 (0.07) 0.60 0.53 -- -- -- -- 10/1/02 to 9/30/03 6.59 (0.06) 2.82 2.76 -- -- -- -- CLASS C 10/1/06 to 9/30/07 $12.19 (0.22)(2) 3.84 3.62 -- -- -- -- 6/9/06(6) to 9/30/06 11.87 (0.05)(2) 0.37 0.32 -- -- -- --
Footnote Legend (1) Sales charges, where applicable, are not reflected in the total return calculation. (2) Computed using average shares outstanding. (3) Annualized. (4) Not annualized. (5) Amount is less than $0.01. (6) Inception date. (7) Represents blended net expense ratio. (8) The Fund also will indirectly bear its prorated share of expenses of the underlying funds. Such expenses are not included in the calculation of this ratio. (9) The amount shown for a share outstanding throughout the period does not accord with the aggregate net loss on investments for the period because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund. (10) For the period ended, the ratio of net operating expenses excludes the effect of expense offsets for custodian fees; if expense offsets were included, the ratio would have been 0.01% lower than the ratio shown in the table. (11) In accordance with changes in generally accepted accounting principles, the Fund reclassified periodic payments made under interest rate swap agreements and high yield debt instruments; previously included within interest income, as a component of realized gain (loss) in the statement of operations. The effect of this reclassification for the Fund on the net investment income per share, net realized and unrealized gains (loss) per share and the ratio of net investment income to average net assets is as follows:
Net realized and Net investment unrealized Net investment income (loss) gains (loss) income ratio Year Increase/ Increase/ Increase/ Fund Ended (Decrease) (Decrease) (Decrease) Emerging Markets Bond Fund Class A 11/30/03 $ 0.02 $(0.02) 0.31 % 11/30/02 (0.02) 0.02 (0.20) Class B 11/30/03 0.02 (0.02) 0.30 11/30/02 (0.01) 0.01 (0.13) Class C 11/30/03 0.03 (0.03) 0.30 11/30/02 (0.01) 0.01 (0.12) High Yield Fund Class A 10/31/03 (0.01) 0.01 (0.30) 10/31/02 (0.01) 0.01 (0.24) Class B 10/31/03 (0.01) 0.01 (0.30) 10/31/02 (0.02) 0.02 (0.24) Class C 10/31/03 (0.02) 0.02 (0.30) 10/31/02 (0.01) 0.01 (0.24) Multi-Sector Fixed Income Fund Class A 10/31/03 (0.02) 0.02 (0.18) 10/31/02 (0.03) 0.03 (0.28) Class B 10/31/03 (0.02) 0.02 (0.16) 10/31/02 (0.03) 0.03 (0.27) Class C 10/31/03 (0.02) 0.02 (0.18) 10/31/02 (0.03) 0.03 (0.27)
See Notes to Financial Statements 116
RATIO OF NET NET RATIO OF NET GROSS RATIO OF NET ASSET ASSETS, OPERATING OPERATING INVESTMENT CHANGE IN VALUE, END OF EXPENSES TO EXPENSES TO INCOME TO NET ASSET END OF TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET PORTFOLIO VALUE PERIOD RETURN(1) (000'S) ASSETS ASSETS ASSETS TURNOVER ================================================================================================================================== - -------------------------- GROWTH OPPORTUNITIES FUND - -------------------------- CLASS A(13) 10/1/06 to 9/30/07 3.76 $15.98 30.77% $ 34,039 1.26% 1.87% (0.62)% 143% 10/1/05 to 9/30/06 0.54 12.22 4.62 8,253 1.25 2.01 (0.56) 189 10/1/04 to 9/30/05 1.80 11.68 18.22 7,158 1.25 1.73 (0.64) 206 10/1/03 to 9/30/04 0.53 9.88 5.67 4,430 1.25 1.83 (0.70) 262 10/1/02 to 9/30/03 2.76 9.35 41.88 3,551 1.25 1.53 (0.77) 282 CLASS C 10/1/06 to 9/30/07 3.62 $15.81 29.78% $ 5,170 2.06% 2.66% (1.48)% 143% 6/9/06(6) to 9/30/06 0.32 12.19 2.70(4) 120 2.00(3) 3.72(3) (1.28)(3) 189(4)
(12) Effective the beginning of fiscal year 2002, each Fund, as required, adopted the provisions of AICPA Audit and Accounting Guide for Investment Companies and began amortizing premiums on debt securities and including paydown gains and losses in interest income. The effect of change for the Fund on the net investment income per share, net this realized and unrealized gains (loss) per share and the ratio of net investment income to average net assets is as follows:
Net realized and Net investment unrealized Net investment Year income (loss) gains (loss) income ratio Fund Ended From To From To From To Core Bond Fund Class A 10/31/02 0.59 0.58 (0.50) (0.49) 5.44% 5.40% Class B 10/31/02 -- -- -- -- 4.67 4.65 Class C 10/31/02 -- -- -- -- 4.64 4.66 Emerging Markets Bond Fund Class A 11/30/02 -- -- -- -- 9.79 9.67 Class B 11/30/02 0.61 0.60 0.26 0.27 9.02 8.91 Class C 11/30/02 0.62 0.61 0.26 0.27 8.95 8.83 High Yield Fund Class A 10/31/02 0.47 0.46 (0.67) (0.66) 9.35 9.30 Class B 10/31/02 -- -- -- -- 8.61 8.56 Class C 10/31/02 0.43 0.42 (0.66) (0.65) 8.57 8.52 Multi-Sector Fixed Income Fund Class A 10/31/02 0.71 0.72 (0.17) (0.18) 7.33 7.42 Class B 10/31/02 0.63 0.64 (0.17) (0.18) 6.61 6.69 Class C 10/31/02 0.64 0.65 (0.17) (0.18) 6.57 6.66
(13) Due to a reorganization on June 9, 2006, the Growth Opportunities Fund is the successor of the Turner Strategic Growth Fund. Class A treats the past performance of the Turner Strategic Growth Fund as its own. See Notes to Financial Statements 117 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 1. ORGANIZATION Phoenix Opportunities Trust (the "Trust") is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. As a result of a consolidation of several Phoenix trusts, the Trust acquired a number of Phoenix funds effective June 27, 2007 and September 24, 2007. All the acquired funds' year ends were changed to correspond with the Trust's September 30th year end. As of the date of this report, nineteen funds are offered for sale (each a "Fund"), of which 16 are reported in this annual report. Each Fund has a distinct investment objective as outlined in the individual fund summary pages. The Funds offer the following classes of shares for sale: CLASS I CLASS A CLASS B CLASS C SHARES SHARES SHARES SHARES --------- --------- --------- --------- ALTERNATIVE FUNDS Global Utilities Fund.............. -- X -- X Market Neutral Fund................ -- X X X FUND OF FUNDS Diversifier PHOLIO(SM)............. -- X -- X Wealth Accumulator PHOLIO(SM)...... -- X -- X Wealth Builder PHOLIO(SM).......... -- X -- X Wealth Guardian PHOLIO(SM)......... -- X -- X FIXED INCOME FUNDS Bond Fund.......................... X X X X CA Tax-Exempt Bond Fund............ X X -- -- Core Bond Fund..................... -- X X X Emerging Markets Bond Fund......... -- X X X High Yield Fund.................... -- X X X Money Market Fund.................. -- X -- -- Multi-Sector Fixed Income Fund..... -- X X X INTERNATIONAL FUNDS International Strategies Fund...... -- X X X Worldwide Strategies Fund.......... -- X X X EQUITY FUNDS Growth Opportunities............... -- X -- X Class I shares are sold without a sales charge. Class A shares for the Fixed Income Funds are sold with a front-end sales charge of up to 4.75%, except for the Money Market Fund. Class A shares for the Alternative Funds, Fund of Funds, International Funds, and Equity Funds are sold with a front-end sales charge of up to 5.75%. Class A shares of Money Market Fund are sold without a front-end sales charge. Generally, Class A shares are not subject to any charges when redeemed; however, a 1% contingent deferred sales charge may be imposed on certain redemptions within one year on purchases on which a finder's fee has been paid with the exception of the Money Market Fund. Shareholders of the predecessor fund who became shareholders of the Growth Opportunities Fund through the reorganization of the Trust are not required to pay a sales load for new purchases of Class A shares of the Growth Opportunities Fund. (See Note 11 regarding the reorganization.) Class B shares are generally 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 generally sold with a 1%, or 1.25% for the Market Neutral Fund contingent deferred sales charge if redeemed within one year of purchase. Each class of shares has identical voting, dividend, liquidation and other rights and the same terms and conditions, except that each class bears different distribution and/or service expenses and has exclusive voting rights with respect to its distribution plan. Class I bears no distribution and/or service expenses. Income and other expenses and realized and unrealized gains and losses of each Fund are borne pro rata by the holders of each class of shares. 118 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2007 2. SIGNIFICANT ACCOUNTING POLICIES 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 and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. A. SECURITY VALUATION: Equity securities are valued at the official closing price (typically last sale) on the exchange on which the securities are primarily traded, or if no closing price is available, 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. For Fund of Funds investments in the underlying funds are valued at each fund's net asset value determined as of the close of business of the New York Stock Exchange (generally 4:00 p.m. Eastern time). As required, some securities and assets may be valued at fair value as determined in good faith by or under the direction of the Trustees. Certain foreign common stocks may be fair valued in cases where closing prices are not readily available or are deemed not reflective of readily available market prices. For example, significant events (such as movement in the U.S. securities market, or other regional and local developments) may occur between the time that foreign markets close (where the security is principally traded) and the time that the Fund calculates its net asset value (generally, the close of the NYSE) that may impact the value of securities traded in these foreign markets. In these cases, information from an external vendor may be utilized to adjust closing market prices of certain foreign common stocks to reflect their fair value. Because the frequency of significant events is not predictable, fair valuation of certain foreign common stocks may occur on a frequent basis. Certain securities held by the Trust were valued on the basis of a price provided by a principal market maker. The prices provided by the principal market makers may differ from the value that would be realized if the securities were sold. At September 30, 2007, the total value of these securities represented approximately 4.9% of the net assets of the Multi-Sector Fixed Income Fund. Short-term investments having a remaining maturity of 60 days or less are valued at amortized cost, which approximates market. The Money Market Fund uses the amortized cost method of security valuation absent extraordinary or unusual market conditions. In the opinion of the Trustees, this represents the fair value of the securities. The Trustees monitor the deviations between the Fund's net asset value per share as determined by using available market quotations and its net asset value per share using amortized cost. If the deviation exceeds 1/2 of 1%, the Board of Trustees will consider what action, if any should be initiated to provide fair valuation. Using this method, the Fund attempts to maintain a constant net asset value of $1 per share. In September 2006, Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("SFAS 157"), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Funds' financial statement disclosures. 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. Each Fund 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 in the Trust to comply with the requirements of the Internal Revenue Code and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes or excise taxes has been made. The Trust may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Each Fund will accrue such taxes and recoveries as applicable based upon current interpretations of the tax rules and regulations that exist in the markets in which it invests. In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation 48 ("FIN 48"), "Accounting for Uncertainty in Income Taxes." This standard defines the threshold for recognizing the benefits of tax-return positions in the financial statements as "more-likely-than-not" to be sustained by the taxing authority and requires measurement of a tax position meeting the more-likely-than-not criterion, based on the largest benefit that is more than 50 percent likely to be realized. Management has analyzed the Funds' tax positions taken on federal income tax returns for all open tax years (tax years ended December 31, 2003 - 2006) for purposes of implementing FIN 48, and has concluded that no provision for income tax is required in the Funds' financial statements. D. DISTRIBUTIONS TO SHAREHOLDERS: Distributions are recorded by each Fund on the ex-dividend date. For the CA Tax-Exempt Fund, Money Market Fund and the Multi-Sector Fixed Income Fund income distributions are recorded daily. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences may include the treatment of non-taxable dividends, market premium and discount, non-deductible expenses, expiring capital loss carryovers, foreign currency gain or loss, gain or loss on futures contracts, partnerships, operating losses and losses deferred due to wash sales. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital paid in on shares of beneficial interest. E. EXPENSES: Expenses incurred by the Trust with respect to more than one Fund are allocated in proportion to the net assets of each Fund, except where allocation of direct expense to each Fund or an alternative allocation method can be more appropriately made. In addition to the Net Annual Operating Expenses that the Funds bear directly, the shareholders in the Fund of Funds indirectly bear the Fund's pro-rata expenses of the underlying mutual funds in which each Fund invests. 119 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2007 F. 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 date 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 isolate that portion of the results of operations arising from either changes in exchange rates or in the market prices of securities. G. FOREIGN SECURITY COUNTRY DETERMINATION: A combination of the following criteria is used to assign the countries of risk listed in the schedules of investments: country of incorporation, actual building address, primary exchange on which the security is traded and country in which the greatest percentage of company revenue is generated. H. FORWARD CURRENCY CONTRACTS: Certain Funds may enter into forward currency contracts in conjunction with the planned purchase or sale of foreign denominated securities in order to hedge the U.S. dollar cost or proceeds. Forward currency contracts involve, to varying degrees, elements of market risk in excess of the amount recognized in the Statement of Assets and Liabilities. Risks arise from the possible movements in foreign exchange rates or if the counterparty does not perform under the contract. A forward currency contract involves an obligation to purchase or sell a specific currency at a future date, which may be any number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. These contracts are traded directly between currency traders and their customers. The contract is marked-to-market daily and the change in market value is recorded by each Fund as an unrealized gain or loss. When the contract is closed or offset with the same counterparty, the Fund records a realized gain or loss equal to the change in the value of the contract when it was opened and the value at the time it was closed or offset. I. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS: Certain Funds may engage in when-issued or delayed delivery transactions. Each Fund records when-issued and delayed delivery securities on the trade date. Each Fund maintains collateral for the securities purchased. Securities purchased on a when-issued or delayed delivery basis begin earning interest on the settlement date. J. LOAN AGREEMENTS: Certain Funds may invest in direct debt instruments which are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates. The Fund's investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. A loan is often administered by a bank or other financial institution (the lender) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. When investing in a loan participation, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan agreement and only upon receipt by the lender of payments from the borrower. The Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund may be subject to the credit risk of both the borrower and the lender that is selling the loan agreement. When the Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan. Direct indebtedness of emerging countries involves a risk that the government entities responsible for the repayment of the debt may be unable, or unwilling, to pay the principal and interest when due. K. CREDIT LINKED NOTES: Certain Funds may invest in credit linked notes which are usually issued by a special purpose vehicle that is selling credit protection through a credit default swap. The performance of the notes is linked to the performance of the underlying reference obligation. The special purpose vehicle invests the proceeds from the notes to cover its contingent obligation. Credit linked notes may also have risks with default by the referenced obligation, currency and/or interest rates. L. SWAP AGREEMENTS: Certain Funds may invest in swap agreements, including interest rate, index, total return, credit default and foreign currency exchange rate swaps. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate and foreign currency swaps involve the exchange by the Funds with another party of their respective commitments to pay or receive interest or foreign currency (e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal). Total return swap agreements involve commitments to pay interest in exchange for a market-linked index, based on the notional amount. To the extent the total return of the security or index involved in the transaction exceeds or falls short of the set interest obligation, the Fund will receive a payment or make a payment to the counterparty. Credit default swaps involve the payment of amounts based on a specified rate multiplied by a notional amount as well as upon an event of default. In connection with these agreements securities may be set aside as collateral by the Funds' custodian. Swaps are marked-to-market daily based upon quotations from market makers and the change, if any, is recorded as an unrealized gain or loss in the Statement of Operations. Net payments of interest are recorded as net realized gains. Entering into these agreements involves, to varying degrees, elements of credit and market risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreement may default on its obligation to perform and that there may be unfavorable changes in the fluctuation of interest and/or exchange rates. M. SHORT SALES: Certain funds may sell securities short. A short sale is a transaction in which the Fund sells a security it does not own in anticipation of a decline in market price. To sell a security short, the Fund must borrow the security. The Fund's obligation to replace the security borrowed and sold short will be fully collateralized at all times by the proceeds from the short sale retained by the broker and by cash and securities deposited in a segregated account with the Fund's custodian. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will realize a loss, and if the price declines during the period, the Fund will realize a gain. Any realized gain will be decreased, and any realized loss increased, by the amount of transaction costs. On ex-dividend date, dividends on short sales are recorded as an expense to the Fund. 120 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2007 At September 30, 2007, the value of securities sold short in the Market Neutral Fund amounted to $59,214 (reported in 000's) against which collateral of $122,357 (reported in 000's) was held. The collateral includes the deposits with broker for securities sold short and the long-term investments held long, as shown in the Schedule of Investments and Securities Sold Short. Short selling used in the management of the Fund may accelerate the velocity of potential losses if the prices of securities sold short appreciate quickly. Stocks purchased may decline in value at the same time stocks sold short appreciate in value, thereby increasing potential losses. N. REIT INVESTMENTS: Dividend income is recorded using management's estimate of the income included in distributions received from the REIT investments. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts. O. SECURITY LENDING: Certain Funds may loan securities to qualified brokers through an agreement with State Street Bank and Trust Company (the "Custodian"). Under the terms of agreement, the Fund is required to maintain collateral with a market value not less than 100% of the market value of loaned securities. Collateral is adjusted daily in connection with changes in the market value of securities on loan. Collateral may consist of cash, securities issued or guaranteed by the U.S. Government or its agencies, sovereign debt of foreign countries and/or irrevocable letters of credit issued by banks. Cash collateral is invested in a short-term money market fund. Dividends earned on the collateral and premiums paid by the broker are recorded as income by the Fund net of fees and rebates charged by the Custodian for its services in connection with this securities lending program. Lending portfolio securities involves a risk of delay in the recovery of the loaned securities or in the foreclosure on collateral. At September 30, 2007, the following Funds had securities on loan as follows (reported in 000's): U.S. GOVERNMENT MARKET SECURITIES CASH FUND VALUE COLLATERAL COLLATERAL ---- -------- ------------ ------------ Core Bond Fund .............. $ 1,487 $ -- $ 1,520 High Yield Fund ............. 21,660 -- 22,469 Worldwide Strategies Fund ... 24,557 564 24,900 P. REPURCHASE AGREEMENTS: Certain Funds may invest in 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. Q. DEBT INDEX SECURITIES: Certain Funds may invest in securities that represent an interest in a diversified portfolio (the "basket") of debt instruments (the "underlying securities"). Under the term of the baskets, the Fund has direct ownership in each underlying security equal to its pro rata interest in the basket. In the event of default of any underlying security, the notional amount on which interest is earned is reduced by the par amount of the defaulted security, and the pro rata interest of such security is distributed to the Fund. Debt index securities are comprised of a basket of credit default swaps referencing a diversified pool of high yield or emerging markets debt instruments. Certain baskets may be purchased on a funded or unfunded basis such that the Fund receives interest payments based upon the notional amount or par amount of the basket. In connection with these investments collateral may be set aside by the Fund's custodian. In the event of default of any of the underlying notional securities within the unfunded basket, the Trust will be required to pay the counterparty an amount equal to its pro rata share of the notional amount of the defaulted security and similarly the Fund will then receive its pro rata interest of the defaulted security or equivalent cash amount. In a funded transaction, in the event of default of any par securities in the funded basket, the Fund would be required to receive its pro rata interest of the defaulted security or equivalent cash amount. 3. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS Phoenix Investment Counsel, Inc. ("PIC") (the "Adviser") is the Adviser to each Fund of the Trust. As compensation for its services to each Fund of the Trust, PIC, an indirect wholly-owned subsidiary of The Phoenix Companies, Inc. ("PNX"), is entitled to a fee based upon the following annual rates as a percentage of the average daily net assets of each Fund. 1ST $1+-2 $2+ BILLION BILLION BILLION --------- --------- --------- Global Utilities Fund ......... 0.65% 0.60% 0.55% CA Tax-Exempt Bond Fund ....... 0.45% 0.40% 0.35% Core Bond Fund ................ 0.45% 0.40% 0.35% Emerging Markets Bond Fund..... 0.75% 0.70% 0.65% High Yield Fund ............... 0.65% 0.60% 0.55% Money Market Fund ............. 0.40% 0.35% 0.30% Multi-Sector Fixed Income Fund. 0.55% 0.50% 0.45% International Strategies Fund . 0.85% 0.80% 0.75% Worldwide Strategies Fund ..... 0.85% 0.80% 0.75% Growth Opportunities Fund ..... 0.75% 0.70% 0.65% For the Funds shown below the individual rates are as follows: Market Neutral ................ 1.50% Diversifer PHOLIO ............. 0.10% Wealth Accumulator PHOLIO ..... 0.10% Wealth Builder PHOLIO ......... 0.10% Wealth Guardian PHOLIO ........ 0.10% Bond Fund ..................... 0.50% The Adviser has voluntarily agreed to limit the Global Utilities Fund's total operating expenses (excluding interest, taxes, and extraordinary expenses) through January 31, 2008 so that such expenses do not exceed 1.15% for Class A shares and 1.90% for Class C shares. The Adviser has voluntarily agreed to limit the Market Neutral Fund's total operating expenses (excluding dividends on short sales, interest, taxes, and extraordinary expenses) so that such expenses do not exceed 1.77% for Class A shares, 2.52% for Class B shares and 2.52% for Class C shares. The adviser has also contractually agreed to waive 0.15% of its management fee through February 28, 2008. 121 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2007 The Adviser has contractually agreed to limit the Wealth Accumulator PHOLIOs', Wealth Builder PHOLIOs', Wealth Guardian PHOLIOs' and Diversifier PHOLIOs' total operating expenses (excluding 12b-1 fees, acquired fund fees and expenses, interest, taxes and extraordinary expenses), through November 30, 2007, so that such expenses do not exceed 0.20% for Class A shares and Class C shares. The adviser will voluntarily continue this arrangement beyond the contractual period, but may discontinue such voluntary arrangement at any time. The Adviser has contractually agreed to limit the Bond Fund's operating expenses (excluding interest, taxes, and extraordinary expenses) through January 31, 2008 so that such expenses do not exceed 0.90% for Class I shares, 1.15% for Class A shares, 1.90% for Class B shares and 1.90% for Class C shares. The Adviser has contractually agreed to limit the CA Tax-Exempt Bond Fund's total operating expenses (excluding interest, taxes, and extraordinary expenses) through September 30, 2007, so that such expenses do not exceed 0.60% for Class I shares and 0.85% for Class A shares. The adviser has voluntarily extended this limitation until January 31, 2008. The Adviser has contractually agreed to limit the Core Bond Fund's operating expenses (excluding interest, taxes, and extraordinary expenses) through February 28, 2008 so that such expenses do not exceed 1.00% for Class A shares, 1.75% for Class B shares and 1.75% for Class C shares. The Adviser has contractually agreed to limit the Growth Opportunities Fund's operating expenses (excluding interest, taxes, and extraordinary expenses) through May 31, 2008, for the extent that such expenses exceed the following percentages of average annual net assets, 1.25% for Class A shares and 2.00% for Class C shares. Effective August 23, 2007, the Adviser may recapture operating expenses waived or reimbursed under this arrangement, within three fiscal years following the end of the fiscal year in which such waiver or reimbursement occurred. Each Fund must pay its ordinary operating expenses before the Adviser is entitled to any reimbursement and must remain in compliance with applicable expense limitations. All or a portion of the following Adviser reimbursed expenses may be recaptured by the fiscal year ended 2010 (reported in 000's): Global Utilities Fund............. $ 8 Market Neutral Fund............... 10 Diversifier PHOLIO................ 36 Wealth Accumulator PHOLIO......... 7 Wealth Guardian PHOLIO............ 12 Wealth Builder PHOLIO............. 29 CA Tax-Exempt Bond Fund........... 7 Core Bond Fund.................... 12 Growth Opportunities Fund......... 16 The subadvisers to the funds are as follows: FUND SUBADVISER ---- -------------------------------------------------- Global Utilities Fund Duff & Phelps Investment Management Co. ("DPIM") Market Neutral Fund . Euclid Advisors LLC ("Euclid") Diversifier PHOLIO .. Goodwin Capital Advisers, Inc. ("Goodwin") Wealth Accumulator PHOLIO ............ Goodwin Capital Advisers, Inc. ("Goodwin") Wealth Builder PHOLIO Goodwin Capital Advisers, Inc. ("Goodwin") Wealth Guardian PHOLIO ............ Goodwin Capital Advisers, Inc. ("Goodwin") Bond Fund ........... SCM Advisors LLC (f/k/a Seneca Capital Management LLC "SCM") CA Tax-Exempt Bond Fund .............. Goodwin Capital Advisers, Inc. ("Goodwin") Core Bond Fund ...... Goodwin Capital Advisers, Inc. ("Goodwin") Emerging Markets Bond Fund ......... Halbis Capital Management (USA) Inc. ("HSBC") High Yield Fund ..... SCM Advisors LLC (f/k/a Seneca Capital Management LLC "SCM") Money Market Fund ... Goodwin Capital Advisers, Inc. ("Goodwin") Multi-Sector Fixed Income Fund ....... Goodwin Capital Advisers, Inc. ("Goodwin") International Strategies Fund ... Acadian Asset Management, Inc. ("Acadian") and New Star Institutional Managers Limited ("New Star") Worldwide Strategies Fund .............. Acadian Asset Management, Inc. ("Acadian") and New Star Institutional Managers Limited ("New Star") Growth Opportunities Fund .............. Turner Investment Partners, Inc. ("Turner") DPIM, GOODWIN, AND SCM ARE INDIRECT, WHOLLY-OWNED SUBSIDIARIES OF PNX. EUCLID IS A WHOLLY-OWNED SUBSIDIARY OF PHOENIX/ZWEIG ADVISERS LLC ("PZA"), WHICH IS A WHOLLY-OWNED SUBSIDIARY OF PHOENIX INVESTMENT PARTNERS, LTD. ("PXP"). PXP IS THE INDIRECT WHOLLY-OWNED ASSET MANAGEMENT SUBSIDIARY OF PNX. PZA AND EUCLID ARE AFFILIATED INVESTMENT ADVISERS. 122 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2007 As distributor of each Fund's shares, Phoenix Equity Planning Corporation ("PEPCO"), an indirect wholly-owned subsidiary of PNX, has advised the Funds that it retained net selling commissions and deferred sales charges for the fiscal years (the "periods") ended September 30, 2007, as follows (reported in 000's): CLASS A CLASS B CLASS C NET DEFERRED DEFERRED SELLING SALES SALES COMMISSIONS CHARGES CHARGES ------------- ---------- ---------- Global Utilities Fund(1) ........... $ 2 $-- $--(++) Market Neutral Fund(2) ............. --(++) 18 5 Diversifier PHOLIO(4) .............. 14 -- 12 Wealth Accumulator PHOLIO(4) ....... 2 -- --(++) Wealth Builder PHOLIO(4) ........... 3 -- --(++) Wealth Guardian PHOLIO(4) .......... 1 -- --(++) Bond Fund .......................... 2 5 --(++) CA Tax-Exempt Bond Fund(1) ......... --(++) -- -- Core Bond Fund(2) .................. 2 1 --(++) Emerging Markets Bond Fund(3) ...... --(++) 9 --(++) High Yield Fund(2) ................. 6 5 1 Multi-Sector Fixed Income Fund(2) .. 7 13 4 International Strategies Fund(3) ... 6 11 --(++) Worldwide Strategies Fund(5) ....... --(++) 1 --(++) Growth Opportunities Fund .......... 1 -- -- CLASS A DEFERRED SALES CHARGES ---------- High Yield Fund .................... $--(++) Multi-Sector Fixed Income Fund ..... 1 (1) The fiscal period for these funds is May 1, 2007 through September 30, 2007. (2) The fiscal period for these funds is November 1, 2006 through September 30, 2007. (3) The fiscal period for these funds is December 1, 2006 through September 30, 2007. (4) The fiscal period for these funds is August 1, 2007 through September 30, 2007. (5) The fiscal period for this fund is July 1, 2007 through September 30, 2007. (++) Less than $1,000. Each Fund pays PEPCO distribution and/or service fees at the following annual rates as a percentage of the average daily net assets of each respective class: CLASS A CLASS B CLASS C --------- --------- --------- Global Utilities Fund........... 0.25% -- 1.00% Market Neutral Fund............. 0.25% 1.00% 1.00% Diversifier PHOLIO.............. 0.06% -- 0.81% Wealth Accumulator PHOLIO....... -- -- 0.75% Wealth Builder PHOLIO........... -- -- 0.75% Wealth Guardian PHOLIO.......... -- -- 0.75% Bond Fund ...................... 0.25% 1.00% 1.00% CA Tax-Exempt Bond Fund ........ 0.25% -- -- Core Bond Fund ................. 0.25% 1.00% 1.00% Emerging Markets Bond Fund ..... 0.25% 1.00% 1.00% High Yield Fund ................ 0.25% 1.00% 1.00% Multi-Sector Fixed Income Fund.. 0.25% 1.00% 1.00% International Strategies Fund... 0.25% 1.00% 1.00% Worldwide Strategies Fund....... 0.25% 1.00% 1.00% Growth Opportunities Fund....... 0.25% -- 1.00% There are no distribution and/or service fees for Class I. The Money Market Fund does not have distribution and/or service fees. To avoid duplication of distribution and/or service fees, each class of shares of the Fund of Funds has reduced the distribution and/or service fees by the amount of the underlying affiliated mutual funds' Class A and Class Y distribution and/or service fees. Under certain circumstances, shares of certain Phoenix Funds may be exchanged for shares of the same class of certain other Phoenix Funds on the basis of the relative net asset values per share at the time of the exchange. On exchanges with share classes that carry a contingent deferred sales charge, the CDSC schedule of the original shares purchased continues to apply. PEPCO serves as the administrator to the Trust. For its services, which includes financial agent services, PEPCO receives an administrative fee at an annual rate of 0.09% of the first $5 billion, 0.08% on the next $10 billion, and 0.07% over $15 billion of the average net assets across all non-money market funds in the Phoenix Funds and The Phoenix Edge Series Fund. For the money market funds, the fee is 0.035% of the average net assets across all money market funds within the Phoenix funds and the Phoenix Edge Series Fund. For the period ended September 30, 2007, the Trust incurred administration fees totaling $667 (reported in 000's). PEPCO serves as the Trust's transfer agent with Boston Financial Data Services, Inc. serving as sub-transfer agent. For the period ended September 30, 2007, transfer agent fees were $1,458 (reported in 000's) as reported in the Statements of Operations. 123 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2007 At September 30, 2007, PNX and its affiliates and Phoenix affiliated Funds held shares which aggregated the following: AGGREGATE NET ASSET SHARES VALUE (REPORTED (REPORTED IN 000'S) IN 000'S) ---------- ------------- Global Utilities Fund ................ 3,672 $50,313 Market Neutral Fund .................. 3,724 39,222 Diversifier PHOLIO.................... 10 119 Bond Fund ............................ 1,988 20,327 Core Bond Fund ....................... --(++) --(++) Money Market Fund .................... 5,245 5,245 International Strategies Fund......... 1,262 20,035 Growth Opportunities Fund ............ 753 12,040 (++) Less than $1,000. Until March 1, 2007, the Trust provided a deferred compensation plan to its trustees who were not officers of PNX. Under the deferred compensation plan, trustees were able to elect to defer all or a portion of their compensation. Amounts deferred were retained by the Trust, and to the extent permitted by the 1940 Act, as amended, could have been invested in the shares of those funds selected by the trustees. Investments in such funds are included in "Other assets" on the Statements of Assets and Liabilities at September 30, 2007. 4. PURCHASES AND SALES OF SECURITIES Purchases and sales of investment securities for all Funds except the Money Market Fund (excluding U.S. Government securities and agency securities, forward currency contracts, futures and short-term securities) during the period ended September 30, 2007, were as follows: LONG TERM (NON-GOVERNMENT) (REPORTED IN 000'S) ---------------------------- PURCHASES SALES ----------- ---------- Global Utilites ...................... $ 23,352 $ 16,813 Market Neutral Fund .................. 525,977 521,269 Diversifier PHOLIO ................... 41,485 29,735 Wealth Accumulator PHOLIO............. 979 88 Wealth Builder PHOLIO ................ 2,550 5,315 Wealth Guardian PHOLIO ............... 1,125 2,691 Bond Fund ............................ 40,092 40,271 CA Tax-Exempt Bond Fund .............. 2,593 4,885 Core Bond Fund ....................... 18,523 20,881 Emerging Markets Bond Fund ........... 55,868 56,650 High Yield Fund ...................... 130,777 131,377 Multi-Sector Fixed Income Fund ....... 98,305 92,729 International Strategies Fund ........ 66,487 69,224 Worldwide Strategies Fund ............ 17,896 19,297 Growth Opportunites Fund ............. 48,694 24,750 Purchases and sales of long term U.S. Government and agency securities for Funds except the Money Market Funds during the period ended September 30, 2007, were as follows: LONG TERM (GOVERNMENT) (REPORTED IN 000'S) ---------------------------- PURCHASES SALES ----------- ---------- Bond Fund ............................ $196,464 $207,423 Core Bond Fund ....................... 12,898 14,045 Multi-Sector Fixed Income Fund ....... 44,253 43,162 124 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2007 5. CAPITAL SHARES Transactions (reported in 000's) in shares of capital stock, during the periods ended as noted below:
-------------------- -------------------- -------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- -------- -------- -------- -------- -------- - --------------------------------- -------------------- -------------------- -------------------- 5/1/07 - 5/1/06 - 5/1/05 - GLOBAL UTILITIES FUND 9/30/07 4/30/07 4/30/06 - --------------------------------- -------------------- -------------------- -------------------- CLASS A Shares sold 1,186 $ 16,030 2,533 $ 31,313 851 $ 8,977 Reinvestment of distributions 120 1,595 67 780 42 438 Redemptions (821) (10,721) (203) (2,538) (152) (1,575) -------- -------- -------- -------- -------- -------- Net increase/(decrease) 485 $ 6,904 2,397 $ 29,555 741 $ 7,840 ======== ======== ======== ======== ======== ======== CLASS C Shares sold 20 $ 262 52 $ 649 101 $ 1,044 Reinvestment of distributions 3 36 3 29 2 18 Redemptions (9) (114) (30) (366) (31) (324) -------- -------- -------- -------- -------- -------- Net increase/(decrease) 14 $ 184 25 $ 312 72 $ 738 ======== ======== ======== ======== ======== ======== - --------------------------------- -------------------- -------------------- -------------------- 11/1/06 - 11/1/05 - 11/1/04 - MARKET NEUTRAL FUND 9/30/07 10/31/06 10/31/05 - --------------------------------- -------------------- -------------------- -------------------- CLASS A Shares sold 3,427 $ 37,237 5,692 $ 65,052 5,692 $ 67,778 Reinvestment of distributions 88 950 -- -- -- -- Redemptions (6,286) (68,728) (7,093) (81,002) (2,490) (29,495) -------- -------- -------- -------- -------- -------- Net increase/(decrease) (2,771) $(30,541) (1,401) $(15,950) 3,202 $ 38,283 ======== ======== ======== ======== ======== ======== CLASS B Shares sold 21 $ 222 41 $ 452 123 $ 1,430 Reinvestment of distributions 4 45 -- -- -- Redemptions (166) (1,732) (320) (3,550) (532) (6,179) -------- -------- -------- -------- -------- -------- Net increase/(decrease) (141) $ (1,465) (279) $ (3,098) (409) $ (4,749) ======== ======== ======== ======== ======== ======== CLASS C Shares sold 33 $ 350 252 $ 2,814 1,823 $ 21,016 Reinvestment of distributions 16 173 -- -- -- -- Redemptions (1,049) (10,949) (2,073) (22,745) (588) (6,769) -------- -------- -------- -------- -------- -------- Net increase/(decrease) (1,000) $(10,426) (1,821) $(19,931) 1,235 $ 14,247 ======== ======== ======== ======== ======== ======== - --------------------------------- -------------------- -------------------- -------------------- 8/1/07 - 8/1/06 - 11/30/05(+) - DIVERSIFIER PHOLIO 9/30/07 7/31/07 7/31/06 - --------------------------------- -------------------- -------------------- -------------------- CLASS A Shares sold 1,208 $ 13,656 8,790 $ 99,697 117 $ 1,212 Reinvestment of distributions 36 420 41 460 --** --(++) Redemptions (498) (5,615) (405) (4,654) (2) (16) -------- -------- -------- -------- -------- -------- Net increase/(decrease) 746 $ 8,461 8,426 $ 95,503 115 $ 1,196 ======== ======== ======== ======== ======== ======== CLASS C Shares sold 528 $ 5,893 5,586 $ 62,713 55 $ 569 Reinvestment of distributions 13 150 10 106 --** --(++) Redemptions (182) (2,048) (168) (1,912) -- -- -------- -------- -------- -------- -------- -------- Net increase/(decrease) 359 $ 3,995 5,428 $ 60,907 55 $ 569 ======== ======== ======== ======== ======== ======== - --------------------------------- -------------------- -------------------- -------------------- 8/1/07 - 8/1/06 - 8/4/05(+) - WEALTH ACCUMULATOR PHOLIO 9/30/07 7/31/07 7/31/06 - --------------------------------- -------------------- -------------------- -------------------- CLASS A Shares sold 51 $ 612 472 $ 5,599 324 $ 3,410 Reinvestment of distributions 9 112 17 197 --** 4 Redemptions (17) (205) (64) (735) (26) (274) -------- -------- -------- -------- -------- -------- Net increase/(decrease) 43 $ 519 425 $ 5,061 298 $ 3,140 ======== ======== ======== ======== ======== ======== CLASS C Shares sold 54 $ 659 162 $ 1,863 230 $ 2,431 Reinvestment of distributions 3 38 6 73 --** 1 Redemptions (15) (175) (75) (888) (7) (78) -------- -------- -------- -------- -------- -------- Net increase/(decrease) 42 $ 522 93 $ 1,048 223 $ 2,354 ======== ======== ======== ======== ======== ========
(+) Inception date. (++) Amount is less than $1,000. ** Shares less than 1,000. 125 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2007
-------------------- -------------------- -------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- -------- -------- -------- -------- -------- - --------------------------------- -------------------- -------------------- -------------------- 8/1/07 - 8/1/06 - 8/1/05 - WEALTH BUILDER PHOLIO 9/30/07 7/31/07 7/31/06 - --------------------------------- -------------------- -------------------- -------------------- CLASS A Shares sold 122 $ 1,566 919 $ 11,761 1,376 $ 16,433 Reinvestment of distributions 169 2,168 201 2,528 212 2,460 Redemptions (116) (1,501) (1,071) (13,740) (1,206) (14,396) -------- -------- -------- -------- -------- -------- Net increase/(decrease) 175 $ 2,233 49 $ 549 382 $ 4,497 ======== ======== ======== ======== ======== ======== CLASS C Shares sold 218 $ 2,774 734 $ 9,313 1,233 $ 14,581 Reinvestment of distributions 123 1,566 215 2,681 163 1,884 Redemptions (197) (2,542) (1,384) (17,498) (2,059) (24,420) -------- -------- -------- -------- -------- -------- Net increase/(decrease) 144 $ 1,798 (435) $ (5,504) (663) $ (7,955) ======== ======== ======== ======== ======== ======== - --------------------------------- -------------------- -------------------- -------------------- 8/1/07 - 8/1/06 - 8/1/05 - WEALTH GUARDIAN PHOLIO 9/30/07 7/31/07 7/31/06 - --------------------------------- -------------------- -------------------- -------------------- CLASS A Shares sold 67 $ 802 617 $ 7,397 856 $ 9,784 Reinvestment of distributions 71 848 93 1,102 114 1,269 Redemptions (101) (1,196) (461) (5,500) (563) (6,422) -------- -------- -------- -------- -------- -------- Net increase/(decrease) 37 $ 454 249 $ 2,999 407 $ 4,631 ======== ======== ======== ======== ======== ======== CLASS C Shares sold 79 $ 938 295 $ 3,491 481 $ 5,477 Reinvestment of distributions 33 393 41 485 65 722 Redemptions (104) (1,246) (635) (7,500) (1,028) (11,737) -------- -------- -------- -------- -------- -------- Net increase/(decrease) 8 $ 85 (299) $ (3,524) (482) $ (5,538) ======== ======== ======== ======== ======== ======== - --------------------------------- -------------------- -------------------- 10/1/06 - 10/1/05 - BOND FUND 9/30/07 9/30/06 - --------------------------------- -------------------- -------------------- CLASS I Shares sold 442 $ 4,581 282 $ 2,920 Reinvestment of distributions 184 1,899 176 1,808 Plan of Reorganization (Note 11) -- -- 4,573 46,686 Redemptions (1,675) (17,320) (1,791) (18,413) -------- -------- -------- -------- Net increase/(decrease) (1,049) $(10,840) 3,240 $ 33,001 ======== ======== ======== ======== CLASS A Shares sold 425 $ 4,351 335 $ 3,429 Reinvestment of distributions 112 1,143 144 1,472 Plan of Reorganization (Note 11) -- -- -- -- Redemptions (420) (4,310) (569) (5,822) -------- -------- -------- -------- Net increase/(decrease) 117 $ 1,184 (90) $ (921) ======== ======== ======== ======== CLASS B Shares sold 25 $ 256 58 $ 582 Reinvestment of distributions 12 120 18 184 Plan of Reorganization (Note 11) -- -- -- -- Redemptions (150) (1,513) (187) (1,876) -------- -------- -------- -------- Net increase/(decrease) (113) $ (1,137) (111) $ (1,110) ======== ======== ======== ======== CLASS C Shares sold 74 $ 746 18 $ 179 Reinvestment of distributions 4 41 6 65 Plan of Reorganization (Note 11) -- -- -- -- Redemptions (64) (647) (84) (838) -------- -------- -------- -------- Net increase/(decrease) 14 $ 140 (60) $ (594) ======== ======== ======== ========
126 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2007
-------------------- -------------------- -------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- -------- -------- -------- -------- -------- - --------------------------------- -------------------- -------------------- -------------------- 5/1/07 - 5/1/06 - 5/1/05 - CA TAX-EXEMPT BOND FUND 9/30/07 4/30/07 4/30/06 - --------------------------------- -------------------- -------------------- -------------------- CLASS I(+) Shares sold 57 $ 684 130 $ 1,489 -- $ -- Reinvestment of distributions 15 183 27 328 -- -- Plan of Reorganization (Note 11) -- -- 2,503 31,008 -- -- Redemptions (95) (1,129) (296) (3,526) -- -- -------- -------- -------- -------- -------- -------- Net increase/(decrease) (23) $ (262) 2,364 $ 29,299 -- $ -- ======== ======== ======== ======== ======== ======== CLASS A Shares sold 10 $ 122 55 $ 680 36 $ 446 Reinvestment of distributions 30 362 94 1,161 112 1,394 Plan of Reorganization (Note 11) -- -- 6 72 -- -- Redemptions (253) (3,037) (499) (6,124) (534) (6,667) -------- -------- -------- -------- -------- -------- Net increase/(decrease) (213) $ (2,553) (344) $ (4,211) (386) $ (4,827) ======== ======== ======== ======== ======== ======== CLASS B Shares sold -- $ -- --** $ --(++) 3 $ 39 Reinvestment of distributions -- -- --** --(++) --** 2 Plan of Reorganization (Note 11) -- -- (6) (72) -- -- Redemptions -- -- (7) (84) (8) (97) -------- -------- -------- -------- -------- -------- Net increase/(decrease) -- $ -- (13) $ (156) (5) $ (56) ======== ======== ======== ======== ======== ======== - --------------------------------- -------------------- -------------------- -------------------- 11/1/06 - 11/1/05 - 11/1/04 - CORE BOND FUND 9/30/07 10/31/06 10/31/05 - --------------------------------- -------------------- -------------------- -------------------- CLASS A Shares sold 190 $ 1,588 201 $ 1,657 286 $ 2,422 Reinvestment of distributions 233 1,936 278 2,272 327 2,762 Redemptions (1,014) (8,437) (1,726) (14,118) (1,858) (15,724) -------- -------- -------- -------- -------- -------- Net increase/(decrease) (591) $ (4,913) (1,247) $(10,189) (1,245) $(10,540) ======== ======== ======== ======== ======== ======== CLASS B Shares sold 125 $ 1,027 98 $ 805 23 $ 194 Reinvestment of distributions 6 49 9 73 12 97 Redemptions (150) (1,237) (184) (1,494) (170) (1,435) -------- -------- -------- -------- -------- -------- Net increase/(decrease) (19) $ (161) (77) $ (616) (135) $ (1,144) ======== ======== ======== ======== ======== ======== CLASS C Shares sold 50 $ 411 24 $ 197 12 $ 101 Reinvestment of distributions 4 36 5 38 4 36 Redemptions (64) (534) (25) (204) (12) (103) -------- -------- -------- -------- -------- -------- Net increase/(decrease) (10) $ (87) 4 $ 31 4 $ 34 ======== ======== ======== ======== ======== ======== - --------------------------------- -------------------- -------------------- -------------------- 12/1/06 - 12/1/05 - 12/1/04 - EMERGING MARKETS BOND FUND 9/30/07 11/30/06 11/30/05 - --------------------------------- -------------------- -------------------- -------------------- CLASS A Shares sold 2,051 $ 18,216 1,692 $ 14,763 1,219 $ 10,309 Reinvestment of distributions 163 1,439 126 1,086 115 965 Redemptions (1,860) (16,413) (1,579) (13,662) (864) (7,265) -------- -------- -------- -------- -------- -------- Net increase/(decrease) 354 $ 3,242 239 $ 2,187 470 $ 4,009 ======== ======== ======== ======== ======== ======== CLASS B Shares sold 14 $ 123 26 $ 220 121 $ 994 Reinvestment of distributions 17 146 34 290 62 509 Redemptions (485) (4,172) (1,058) (8,948) (1,460) (12,015) -------- -------- -------- -------- -------- -------- Net increase/(decrease) (454) $ (3,903) (998) $ (8,438) (1,277) $(10,512) ======== ======== ======== ======== ======== ======== CLASS C Shares sold 11 $ 95 24 $ 204 38 $ 312 Reinvestment of distributions 4 33 6 53 9 75 Redemptions (17) (150) (121) (1,028) (67) (551) -------- -------- -------- -------- -------- -------- Net increase/(decrease) (2) $ (22) (91) $ (771) (20) $ (164) ======== ======== ======== ======== ======== ========
(+) Inception date for Class I is 9/29/06. (++) Amount is less than $1,000. ** Shares less than 1,000. 127 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2007
-------------------- -------------------- -------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT --------- --------- --------- --------- --------- --------- - --------------------------------- -------------------- -------------------- -------------------- 11/1/06 - 11/1/05 - 11/1/04 - HIGH YIELD FUND 9/30/07 10/31/06 10/31/05 - --------------------------------- -------------------- -------------------- -------------------- CLASS A Shares sold 2,256 $ 11,148 2,756 $ 13,448 2,707 $ 13,593 Reinvestment of distributions 1,069 5,289 1,202 5,866 1,330 6,686 Redemptions (4,664) (23,146) (6,555) (32,087) (8,653) (43,622) --------- --------- --------- --------- --------- --------- Net increase/(decrease) (1,339) $ (6,709) (2,597) $ (12,773) (4,616) $ (23,343) ========= ========= ========= ========= ========= ========= CLASS B Shares sold 73 $ 352 211 $ 1,014 120 $ 592 Reinvestment of distributions 21 101 33 156 59 292 Redemptions (503) (2,458) (914) (4,422) (1,447) (7,192) --------- --------- --------- --------- --------- --------- Net increase/(decrease) (409) $ (2,005) (670) $ (3,252) (1,268) $ (6,308) ========= ========= ========= ========= ========= ========= CLASS C Shares sold 214 $ 1,057 125 $ 604 125 $ 628 Reinvestment of distributions 11 55 10 50 12 62 Redemptions (121) (597) (173) (841) (166) (828) --------- --------- --------- --------- --------- --------- Net increase/(decrease) 104 $ 515 (38) $ (187) (29) $ (138) ========= ========= ========= ========= ========= ========= - --------------------------------- -------------------- -------------------- -------------------- 11/1/06 - 11/1/05 - 11/1/04 - MONEY MARKET FUND 9/30/07 10/31/06 10/31/05 - --------------------------------- -------------------- -------------------- -------------------- CLASS A Shares sold 67,326 $ 67,326 95,573 $ 95,573 166,202 $ 166,202 Reinvestment of distributions 3,761 3,761 3,923 3,923 2,387 2,387 Redemptions (74,042) (74,042) (111,112) (111,112) (197,190) (197,190) --------- --------- --------- --------- --------- --------- Net increase/(decrease) (2,955) $ (2,955) (11,616) $ (11,616) (28,601) $ (28,601) ========= ========= ========= ========= ========= ========= - --------------------------------- -------------------- -------------------- -------------------- 11/1/06 - 11/1/05 - 11/1/04 - MULTI-SECTOR FIXED INCOME FUND 9/30/07 10/31/06 10/31/05 - --------------------------------- -------------------- -------------------- -------------------- CLASS A Shares sold 1,894 $ 20,760 1,911 $ 20,550 2,094 $ 23,025 Reinvestment of distributions 321 3,523 351 3,769 417 4,574 Redemptions (2,217) (24,261) (2,559) (27,444) (2,202) (24,154) --------- --------- --------- --------- --------- --------- Net increase/(decrease) (2) $ 22 (297) $ (3,125) 309 $ 3,445 ========= ========= ========= ========= ========= ========= CLASS B Shares sold 210 $ 2,306 267 $ 2,866 321 $ 3,511 Reinvestment of distributions 31 337 36 388 55 605 Redemptions (237) (2,592) (592) (6,341) (723) (7,920) --------- --------- --------- --------- --------- --------- Net increase/(decrease) 4 $ 51 (289) $ (3,087) (347) $ (3,804) ========= ========= ========= ========= ========= ========= CLASS C Shares sold 703 $ 7,777 572 $ 6,172 684 $ 7,563 Reinvestment of distributions 50 544 42 452 34 375 Redemptions (439) (4,835) (460) (4,958) (275) (3,014) --------- --------- --------- --------- --------- --------- Net increase/(decrease) 314 $ 3,486 154 $ 1,666 443 $ 4,924 ========= ========= ========= ========= ========= ========= - --------------------------------- -------------------- -------------------- -------------------- 12/1/06 - 12/1/05 - 12/1/04 - INTERNATIONAL STRATEGIES FUND 9/30/07 11/30/06 11/30/05 - --------------------------------- -------------------- -------------------- -------------------- CLASS A Shares sold 869 $ 12,710 1,119 $ 13,641 2,384 $ 25,281 Reinvestment of distributions 76 1,092 92 1,059 108 1,085 Redemptions (1,024) (15,132) (1,628) (20,169) (1,872) (19,333) --------- --------- --------- --------- --------- --------- Net increase/(decrease) (79) $ (1,330) (417) $ (5,469) 620 $ 7,033 ========= ========= ========= ========= ========= ========= CLASS B Shares sold 110 $ 1,504 159 $ 1,784 173 $ 1,642 Reinvestment of distributions 4 51 3 29 10 88 Redemptions (182) (2,427) (239) (2,738) (338) (3,197) --------- --------- --------- --------- --------- --------- Net increase/(decrease) (68) $ (872) (77) $ (925) (155) $ (1,467) ========= ========= ========= ========= ========= ========= CLASS C Shares sold 37 $ 507 65 $ 736 56 $ 542 Reinvestment of distributions 1 19 1 8 2 18 Redemptions (50) (684) (37) (413) (41) (394) --------- --------- --------- --------- --------- --------- Net increase/(decrease) (12) $ (158) 29 $ 331 17 $ 166 ========= ========= ========= ========= ========= =========
128 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2007
-------------------- -------------------- -------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- -------- -------- -------- -------- -------- - --------------------------------- -------------------- -------------------- -------------------- 7/1/07 - 7/1/06 - 7/1/05 - WORLDWIDE STRATEGIES FUND 9/30/07 6/30/07 6/30/06 - --------------------------------- -------------------- -------------------- -------------------- CLASS A Shares sold 63 $ 768 323 $ 3,514 281 $ 2,665 Reinvestment of distributions 598 6,814 102 1,120 104 962 Redemptions (252) (3,000) (1,165) (12,702) (1,941) (17,757) -------- -------- -------- -------- -------- -------- Net increase/(decrease) 409 $ 4,582 (740) $ (8,068) (1,556) $(14,130) ======== ======== ======== ======== ======== ======== CLASS B Shares sold 34 $ 373 90 $ 906 96 $ 825 Reinvestment of distributions 30 307 3 30 3 24 Redemptions (51) (551) (234) (2,327) (165) (1,405) -------- -------- -------- -------- -------- -------- Net increase/(decrease) 13 $ 129 (141) $ (1,391) (66) $ (556) ======== ======== ======== ======== ======== ======== CLASS C Shares sold 5 $ 53 16 $ 160 37 $ 296 Reinvestment of distributions 10 106 1 9 1 12 Redemptions (4) (48) (166) (1,484) (100) (842) -------- -------- -------- -------- -------- -------- Net increase/(decrease) 11 $ 111 (149) $ (1,315) (62) $ (534) ======== ======== ======== ======== ======== ======== - --------------------------------- -------------------- -------------------- 10/1/06 - 10/1/05 - GROWTH OPPORTUNITIES FUND 9/30/07 9/30/06 - --------------------------------- -------------------- -------------------- CLASS I Shares sold -- $ -- 445 $ 5,673 Reinvestment of distributions -- -- -- -- Plan of Reorganization (Note 11) -- -- (950) (11,285) Redemptions -- -- (108) (1,350) -------- -------- -------- -------- Net increase/(decrease) -- $ -- (613) $ (6,962) ======== ======== ======== ======== CLASS A Shares sold 1,933 $ 27,278 43 $ 511 Reinvestment of distributions -- -- -- -- Plan of Reorganization -- -- 950 11,285 Redemptions (477) (6,647) (318) (3,723) -------- -------- -------- -------- Net increase/(decrease) 1,456 $ 20,631 675 $ 8,073 ======== ======== ======== ======== CLASS C(+) Shares sold 325 $ 4,817 10 $ 117 Reinvestment of distributions -- -- -- -- Plan of Reorganization (Note 11) -- -- -- -- Redemptions (8) (130) -- -- -------- -------- -------- -------- Net increase/(decrease) 317 $ 4,687 10 $ 117 ======== ======== ======== ========
(+) Inception date for Class C is 6/9/06. 129 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2007 6. 10% SHAREHOLDERS As of September 30, 2007, certain Funds had individual shareholder accounts and/or omnibus shareholder accounts (which are comprised of a group of individual shareholders), which individually amounted to more than 10% of the total shares outstanding of the fund as detailed below. % OF SHARES NUMBER OF OUTSTANDING ACCOUNTS ------------- ----------- Global Utilities Fund............. 71% 2 Market Neutral Fund .............. 53 2 Diversifier PHOLIO ............... 42 2 Wealth Accumulator PHOLIO ........ 26 2 Wealth Builder PHOLIO ............ 33 1 Wealth Guardian PHOLIO ........... 33 1 Bond Fund ........................ 23 2 International Strategies Fund..... 13 1 Growth Opportunities Fund......... 43 2 The total of affiliated shareholder accounts reported above is seven and the remaining 10 accounts are non-affiliated. The Fund of Funds do not invest in the underlying funds for the purpose of exercising management or control; however, investments made by each Fund within each of its principal investment strategies may represent a significant portion of an underlying fund's net assets. At September 30, 2007, the Funds were the owner of record of the following approximate percentages of the total outstanding shares of the underlying funds as detailed below: WEALTH WEALTH BUILDER GUARDIAN DIVERSIFIER PHOLIO PHOLIO PHOLIO --------- ---------- ------------- Phoenix Bond Fund--Class A ................. 12% 11% -- Phoenix Dynamic Growth Fund--Class A ................. 39 12 -- Phoenix Global Utilities Fund--Class A ................. -- -- 58% Phoenix Growth Opportunities Fund--Class A ................. 20 -- -- Phoenix Market Neutral Fund--Class A ................. 14 -- 39 Phoenix Quality Small-Cap Fund--Class A ................. 25 -- -- Phoenix Small-Cap Sustainable Growth Fund--Class A .......... 24 -- -- Phoenix Value Opportunities Fund--Class A ................. 15 -- -- The investments of the Wealth Accumulator PHOLIO do not represent greater than 10% of the underlying funds' total outstanding shares. 7. ILLIQUID AND RESTRICTED SECURITIES Investments shall be considered illiquid if they cannot be disposed of within seven days in the ordinary course of business at the approximate amount at which such securities have been valued by the Fund. Additionally, the following information is also considered in determining liquidity: the frequency of trades and quotes for the investment, whether the investment is listed for trading on a recognized domestic exchange and/or whether two or more brokers are willing to purchase or sell the security at a comparable price, the extent of market making activity in the investment and the nature of the market for investment. Illiquid securities are footnoted as such at the end of each Fund's Schedule of Investments where applicable. Restricted securities are illiquid securities, as defined above, not registered under the Securities Act of 1933. Generally, 144A securities are excluded from this category, except where defined as illiquid. At September 30, 2007, the Funds held the following restricted securities (reported in 000's): MARKET % OF VALUE NET ACQUISITION ACQUISITION AT ASSETS DATE COST 9/30/07 AT 9/30/07 ----------- ----------- ------- ---------- Market Neutral Fund Telefonica Moviles S.A. 12/20/01 $ -- $-- 0.0% Telefonica Data Argentina S.A. 12/20/01 $ -- $-- 0.0% Core Bond Fund GSAMP Net Interest Margin Trust 05-NC1 144A 5.000% due 2/25/35 2/7/05 $ 1 $-- 0.0% MASTR Resecuritization Trust 05-4CI, N2 144A 8.129% due 4/26/45 11/12/06 $ 170 $87 0.1% High Yield Fund CB Cambridge Industries Liquidating Trust Interests 0%, 12/24/05 12/24/01 $ 369 $ 1 0.0% Poland Telecom Finance BV Series B 14%, 12/1/07 11/24/97 $5,000 $62 0.0% ACG Holdings, Inc. 12/4/93 $ 358 $-- 0.0% Multi-Sector Fixed Income Fund MASTR Alternative Net Interest Margin 06-6 N1 144A 6.129%, 9/26/46 8/3/06 $ 109 $71 0.0% The Funds will bear any costs, including those involved in registration under the Securities Act of 1933, in connection with the disposition of such securities. 8. CREDIT RISK AND ASSET CONCENTRATION In countries with limited or developing markets, investments may present greater risks than in more developed markets and the prices of such investments may be volatile. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of these investments and the income they generate, as well as a Fund's ability to repatriate such amounts. High yield/high risk securities typically entail greater price volatility and/or principal and interest rate risk. There is a greater chance that 130 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2007 an issuer will not be able to make principal and interest payments on time. Analysis of the creditworthiness of issuers of high yield securities may be complex, and as a result, it may be more difficult for the adviser and/or subadviser to accurately predict risk. Since the Market Neutral Fund does not clear its own short selling transactions, it has established accounts with its broker for this purpose. This results in concentration of credit risk with the brokerage firm. Such risk, however, is mitigated by the broker's obligation to comply with rules and regulations governing their business activities. These rules and regulations generally require maintenance of net capital and segregation of customer's funds and securities from holdings of the firm. In the event that the clearing broker becomes insolvent, recovery of segregated funds may be limited to a pro rata share of all customer-segregated funds available. In such an instance, the Fund could incur losses to the extent that the recovery amount is less than the total cash and other securities deposited with the clearing broker. Certain Funds may 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 on a Fund, positive or negative, than if a Fund did not concentrate its investments in such sectors. At September 30, 2007, the Growth Opportunities Fund held securities issued by various companies in the Information Technology Sector, representing 34% of the total net assets of the Fund. 9. INDEMNIFICATIONS Under the Funds' organizational documents, their trustees and officers are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, the Funds enter into contracts that contain a variety of indemnifications. The Funds' maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these arrangements. 10. REGULATORY EXAMS Federal and state regulatory authorities from time to time make inquiries and conduct examinations regarding compliance by The Phoenix Companies, Inc. and its subsidiaries (collectively "the Company") with securities and other laws and regulations affecting their registered products. During 2004 and 2005, the Boston District Office of the Securities and Exchange Commission ("SEC") conducted an examination of the Company's investment company and investment adviser affiliates. Following the examination, the staff of the SEC Boston District Office issued a deficiency letter noting perceived weaknesses in procedures for monitoring trading to prevent market timing activity prior to 2004. The staff requested the company to conduct an analysis as to whether shareholders, policyholders and contract holders who invested in the funds that may have been affected by undetected market timing activity had suffered harm and to advise the staff whether the Company believes reimbursement is necessary or appropriate under the circumstances. Market timing is an investment technique involving frequent short-term trading of mutual fund shares that is designed to exploit market movements or inefficiencies in the way mutual fund companies price their shares. A third party was retained to assist the Company in preparing the analysis. In 2005, based on the third party analysis the Company notified the staff at the SEC Boston District Office that reimbursements were not appropriate under the circumstances. In February 2005, the NASD notified PNX that it was asserting violations of trade reporting rules by a subsidiary. PNX responded to the NASD allegations in May 2005. Thereafter, in January 2007, the NASD notified PNX that the matter is being referred for potential violations and possible action. On May 3, 2007, the NASD accepted a letter of acceptance, waiver and consent submitted by the PXP subsidiary to resolve this matter. Without admitting or denying the NASD's findings, in accordance with the terms of the letter the PXP subsidiary agreed to a censure, to pay a fine of $8,000 and to revise its supervisory procedures. The Company does not believe that the outcome of these matters will be material to these financial statements. 11. PLANS OF REORGANIZATION On May 19, 2006, the Phoenix Bond Fund ("Bond Fund") acquired all of the net assets of the Phoenix Intermediate Bond Fund ("Intermediate Bond Fund") of the Phoenix Asset Trust pursuant to an Agreement and Plan of Reorganization approved by the Intermediate Bond Fund's Board of Trustees on February 16, 2006. The acquisition was accomplished by a tax-free exchange of 4,573,055 Class I shares (f/k/a Class X) of Bond Fund (valued at $46,685,805) for 4,528,299 Class I shares (f/k/a Class X) of the Intermediate Bond Fund outstanding on May 19, 2006. The Intermediate Bond Fund had net assets on that date of $46,685,805 including $1,200,811 of net depreciation which were combined with those of the Bond Fund. The aggregate net assets of the Bond Fund immediately after the merger were $105,282,429. The shareholders of Class I (f/k/a Class X) of the Intermediate Bond Fund received for each share owned approximately 1.01 Class I shares (f/k/a Class X) of the Bond Fund. On June 9, 2006, the shareholders of the Turner Strategic Growth Fund ("Strategic Growth"), formerly advised by Turner Investment Management LLC ("Turner"), pursuant to a Plan of Reorganization approved a tax-free reorganization in exchange for shares of the Growth Opportunities Fund. On June 9, 2006, the Growth Opportunities Fund acquired the assets and liabilities of the Strategic Growth Fund. The number and value of Class A shares issued by Growth Opportunities Fund were in amounts equal to the number and value of Class I shares held by Strategic Growth Fund shareholders as of the reorganization date. The financial information of the Fund through June 9, 2006 is that of the Turner Strategic Growth Fund. On October 6, 2006, the Fund acquired all of the net assets of the Phoenix CA Intermediate Tax-Free Bond Fund ("CA Intermediate Tax-Free Bond Fund") of the Phoenix Asset Trust pursuant to an Agreement and Plan of Reorganization approved by the Board of Trustees of the Phoenix Asset Trust on July 28, 2006. The acquisition was accomplished by a tax-free exchange of 2,502,631 Class I 131 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2007 shares (f/k/a Class X) of the Fund outstanding on October 6, 2006 (valued at $31,007,694) for 2,950,295 Class I (f/k/a Class X) shares of the CA Intermediate Tax-Free Bond Fund outstanding on October 6, 2006. The Intermediate Tax-Free Bond Fund had net assets on that date of $31,007,694 including $262,753 of net appreciation, which were combined with those of the Fund. The aggregate net assets of the Fund immediately after the merger were $75,668,163. The shareholders of the CA Intermediate Tax-Free Bond Fund received for each share owned approximately 0.85 Class I shares (f/k/a Class X) of the same class of the Fund. 12. EXEMPTIVE ORDER On June 5, 2006, the SEC issued an order under Section 12(d) (1) (J) of the Investment Company Act ("1940 Act") granting an exemption from Sections 12(d) (1) (A) and (B) of the 1940 Act and under Sections 6(c) and 17(b) of the 1940 Act granting an exemption from Section 17(a) of the 1940 Act, which permits the Trust to invest in other affiliated and unaffiliated funds, including exchange traded funds. 13. FEDERAL INCOME TAX INFORMATION (REPORTED IN 000'S) The Funds have capital loss carryovers which may be used to offset future capital gains, as follows:
Expiration Year ------------------------------------------------------------------------------------------ 2008 2009 2010 2011 2012 2013 2014 2015 Total ------- -------- -------- -------- -------- -------- -------- -------- ----------- Market Neutral ............ $ 5,119 $ -- $ -- $10,522 $ -- $ -- $7,528 $ 6,775 $ 29,944 Diversifier PHOLIO(SM)..... -- -- -- -- -- -- -- 882 882 Wealth Accumulator PHOLIO(SM) .............. -- -- -- -- -- -- -- 6 6 Bond Fund ................. -- -- -- -- 274 408 41 494 1,217 CA Tax-Exempt Bond Fund ............... -- -- -- -- -- -- -- 147 147 Core Bond Fund ............ 8,192 -- 2,929 -- 7,849 -- 782 -- 19,752 Emerging Markets Bond Fund ............... 14,363 5,098 -- -- -- -- -- -- 19,461 High Yield Fund ........... 27,836 66,603 70,135 21,888 -- -- 143 -- 186,605 Money Market Fund ......... -- -- -- -- -- -- -- 5 5 Multi-Sector Fixed Income Fund ............. 9,038 7,667 13,774 -- -- -- -- -- 30,479 International Strategies Fund .................... -- -- -- 1,195 -- -- -- -- 1,195 Growth Opportunities Fund .................... -- 1,042 8,526 3,012 -- -- -- -- 12,580
The Trust may not realize the benefit of these losses to the extent each Fund does not realize gains on investments prior to the expiration of the capital loss carryovers. For the period ended September 30, 2007, the Funds utilized losses deferred in prior years against current year capital gains as follows: Core Bond Fund $ 1,115 Emerging Markets Bond Fund 1,420 High Yield Fund 2,123 Multi-Sector Fixed Income Fund 1,224 International Strategies Fund 10,748 Growth Opportunities Fund 434 The following Funds had capital loss carryover which expired in 2007: Market Neutral $ 1,007 Core Bond Fund 4,554 High Yield Fund 36,101 Multi-Sector Fixed Income Fund 34,988 Under current tax law, foreign currency and capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. For the fiscal year ended September 30, 2007, the Funds deferred and recognized post-October losses as follows: CAPITAL CAPITAL LOSS DEFERRED LOSS RECOGNIZED ------------- --------------- Bond Fund ......................... $689 $1,440 132 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2007 The components of distributable earnings on a tax basis (excluding unrealized appreciation (depreciation) which are disclosed in the Schedules of Investments) consist of the following: UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED ORDINARY LONG-TERM TAX-EXEMPT INCOME CAPITAL GAINS INCOME ------------- ------------- ------------- Global Utilities Fund $259 $2,104 -- Market Neutral Fund 976 -- -- Diversifier PHOLIO(SM) 382 -- -- Wealth Builder PHOLIO(SM) 182 434 -- Wealth Guardian PHOLIO(SM) 104 97 -- CA Tax-Exempt Bond Fund -- -- $45 Core Bond Fund 27 -- -- Emerging Markets Bond Fund 264 -- -- High Yield Fund 142 -- -- Money Market Fund 18 -- -- Multi-Sector Fixed Income Fund 595 -- -- International Strategies Fund 624 -- -- Worldwide Strategies Fund 208 1,804 -- For the period ended September 30, 2007, the CA Tax-Exempt Bond Fund distributed $1,049 of exempt interest dividends. The differences between the book and tax basis components of distributable earnings relate principally to the timing of recognition of income and gains for federal income tax purposes. Short-term gain distributions reported in the Statements of Changes in Net Assets, if any, are reported as ordinary income for federal tax purposes. 14. RECLASSIFICATION OF CAPITAL ACCOUNTS For financial reporting purposes, book basis capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Permanent reclassifications can arise from differing treatment of certain income and gain transactions, nondeductible current year net operating losses, expiring capital loss carryovers and investments in passive foreign investment companies. The reclassifications have no impact on the net assets or net asset value of the Funds. As of September 30, 2007, the Funds recorded reclassifications to increase (decrease) the accounts as listed below (reported in 000's): CAPITAL PAID IN ON ACCUMULATED UNDISTRIBUTED SHARES OF NET NET BENEFICIAL REALIZED INVESTMENT INTEREST GAIN (LOSS) INCOME (LOSS) ------------ ----------- ------------- Global Utilities Fund ......... $ (6) $ 1 $ 5 Market Neutral ................ (1,006) 869 137 Diversifier PHOLIO(SM) ........ (1) 158 (157) Wealth Accumulator PHOLIO(SM) . (3) 2 1 Wealth Builder PHOLIO(SM) ..... (1) -- 1 Wealth Guardian PHOLIO(SM) .... 1 (2) 1 Bond Fund ..................... (26) -- 26 CA Tax-Exempt Bond Fund ....... 2 (5) 3 Core Bond Fund ................ (4,412) 4,224 188 Emerging Markets Bond Fund .... 36 (411) 375 High Yield Fund ............... (36,045) 35,533 512 Money Market Fund ............. (12) -- 12 Multi-Sector Fixed Income Fund ........................ (35,108) 34,977 131 International Strategies Fund ........................ (5) (57) 62 Worldwide Strategies Fund ..... (1) (19) 20 Growth Opportunities Fund ..... (107) -- 107 133 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM [LOGO OMITTED] PRICEWATERHOUSECOOPERS To the Board of Trustees and Shareholders of Phoenix Opportunities Trust In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations, changes in net assets and the financial highlights present fairly, in all material respects, the financial position at September 30, 2007 of Phoenix Global Utilities Fund (formerly a series of Phoenix Investment Series Fund); Phoenix Market Neutral Fund (formerly a series of Phoenix Portfolios); Phoenix Diversifier PHOLIO, Phoenix Wealth Accumulator PHOLIO, Phoenix Wealth Builder PHOLIO, Phoenix Wealth Guardian PHOLIO (formerly a series of Phoenix PHOLIOs(SM); Phoenix Bond Fund; Phoenix CA Tax-Exempt Bond Fund (formerly a series of Phoenix CA Tax-Exempt Bond Fund); Phoenix Core Bond Fund (formerly a series of Phoenix Series Fund); Phoenix Emerging Markets Bond Fund (formerly a series of Phoenix Multi-Portfolio Fund); Phoenix High Yield Fund, Phoenix Money Market Fund (formerly a series of Phoenix Series Fund); Phoenix Multi-Sector Fixed Income Fund (formerly a series of Phoenix Multi-Series Fund); Phoenix International Strategies Fund (formerly a series of Phoenix Multi-Portfolio Fund); Phoenix Worldwide Strategies Fund (formerly a series of Phoenix Equity Trust) and Phoenix Growth Opportunities Fund, (each a series of Phoenix Opportunities Trust, hereafter referred to as the "Trust"), at September 30, 2007, the results of each of their operations, the changes in each of their net assets and their financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2007 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion. The Statement of Changes in Net Assets for the year ended September 30, 2005 and the Financial Highlights for each of the four years in the period ended September 30, 2005 for Phoenix Growth Opportunities Fund were audited by other independent accountants whose report dated November 18, 2005, expressed an unqualified opinion on those statements. /s/ PricewaterhouseCoopers LLP Boston, Massachusetts November 20, 2007 134 PHOENIX OPPORTUNITIES TRUST TAX INFORMATION NOTICE (UNAUDITED) SEPTEMBER 30, 2007 ------------------------------------------------------------------------------- For the fiscal year ended September 30, 2007, for federal income tax purposes, the following percentages of the ordinary income dividends earned by the funds qualify for the dividends received deduction for corporate shareholders: Global Utilities Fund 54% Market Neutral Fund 42 Diversifier PHOLIO 51 Wealth Accumulator PHOLIO 100 Wealth Builder PHOLIO 34 Wealth Guardian PHOLIO 19 Worldwide Strategies Fund 65 For the fiscal year ended September 30, 2007, the funds hereby designates the below percentages, or the maximum amount allowable, of its ordinary income dividends to qualify for the lower tax rates applicable to individual shareholders. The actual percentage for the calendar year will be designated in the year-end tax statements. Global Utilities Fund 97% Market Neutral Fund 40 Diversifier PHOLIO 71 Wealth Accumulator PHOLIO 100 Wealth Builder PHOLIO 42 Wealth Guardian PHOLIO 22 International Strategies Fund 100 Worldwide Strategies Fund 100 For the fiscal year ended September 30, 2007, the funds designate the amounts below, or if subsequently different, following as long term capital gains dividends (reported in 000's): Global Utilities Fund $2,110 Diversifier PHOLIO 841 Wealth Builder PHOLIO 434 Wealth Guardian PHOLIO 97 Worldwide Strategies Fund 1,811 For the period ended September 30, 2007 the Phoenix International Strategies Fund and the Phoenix Worldwide Strategies Fund recognized $2,524,209 and $501,512 respectively of foreign source income on which the Funds paid foreign taxes of $197,180 and $23,674 respectively. This Information is being furnished to you pursuant to notice requirements of Section 853(a) and 855(d) of the Internal Revenue Code, as amended, and the Treasury Regulations thereunder. For federal income tax purposes, 99% of the income dividends paid by the Phoenix CA Tax-Exempt Fund qualify as exempt-interest dividends. ------------------------------------------------------------------------------- 135 BOARD OF TRUSTEES' CONSIDERATION OF INVESTMENT ADVISORY AND SUBADVISORY AGREEMENTS PHOENIX OPPORTUNITIES TRUST SEPTEMBER 30, 2007 (UNAUDITED) BOARD OF TRUSTEES' CONSIDERATION OF INVESTMENT ADVISORY AND SUBADVISORY AGREEMENTS FOR PHOENIX CA TAX-EXEMPT BOND FUND, PHOENIX CORE BOND FUND, PHOENIX DIVERSIFIER PHOLIO, PHOENIX EMERGING MARKETS BOND FUND, PHOENIX FOREIGN OPPORTUNITIES FUND, PHOENIX GLOBAL UTILITIES FUND, PHOENIX HIGH YIELD FUND, PHOENIX INTERNATIONAL STRATEGIES FUND, PHOENIX MARKET NEUTRAL FUND, PHOENIX MONEY MARKET FUND, PHOENIX MULTI-SECTOR FIXED INCOME FUND, PHOENIX MULTI-SECTOR SHORT TERM BOND FUND, PHOENIX REAL ESTATE SECURITIES FUND, PHOENIX WEALTH ACCUMULATOR PHOLIO, PHOENIX WEALTH BUILDER PHOLIO, PHOENIX WEALTH GUARDIAN PHOLIO AND PHOENIX WORLDWIDE STRATEGIES FUND (EACH, A "FUND") Each of the above-referenced Funds is the result of a reorganization with an identical counterpart fund from a different Phoenix Fund trust. The reorganizations were conducted to relocate the funds from other Phoenix Fund trusts into the Phoenix Opportunities Trust. Although newly formed, the above-referenced Funds have taken on all attributes of each identical counterpart including all aspects of the previously approved advisory and subadvisory agreements for which Board of Trustee considerations were previously reported in the appropriate shareholder report. 136 RESULTS OF SHAREHOLDER MEETING PHOENIX OPPORTUNITIES TRUST OCTOBER 31, 2006 (UNAUDITED) At a special meeting of shareholders of Phoenix Opportunities Trust (the "Trust") held on October 31, 2006, shareholders voted on the following proposals:
NUMBER OF ELIGIBLE UNITS VOTED: FOR AGAINST ------------- --------- To elect eleven Trustees to serve on the Board of Trustees until the next meeting of shareholders at which Trustees are elected. E. Virgil Conway.......................................................... 121,064,647 625,812 Harry Dalzell-Payne....................................................... 121,064,647 625,812 Daniel T. Geraci.......................................................... 121,051,683 638,777 Francis E. Jeffries....................................................... 121,064,647 625,812 Leroy Keith, Jr........................................................... 121,064,647 625,812 Marilyn E. LaMarche....................................................... 121,063,658 626,802 Philip R. McLoughlin...................................................... 121,064,647 625,812 Geraldine M. McNamara..................................................... 121,063,658 626,802 James M. Oates............................................................ 121,064,647 625,812 Richard E. Segerson....................................................... 121,064,647 625,812 Ferdinand L. J. Verdonck.................................................. 121,064,647 625,812 FOR AGAINST ABSTAIN ------------- --------- --------- To ratify the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the Trusts.......................... 120,692,791 177,364 820,305
137 RESULTS OF SHAREHOLDER MEETING PHOENIX OPPORTUNITIES TRUST OCTOBER 31, 2006 (UNAUDITED) At a special meeting of shareholders of Phoenix Bond Fund, Phoenix CA Tax-Exempt Bond Fund, Phoenix Core Bond Fund, Phoenix Diversifier PHOLIO, Phoenix Emerging Markets Bond Fund, Phoenix Global Utilities Fund, Phoenix Growth Opportunities Fund, Phoenix High Yield Fund, Phoenix International Strategies Fund, Phoenix Market Neutral Fund, Phoenix Money Market Fund, Phoenix Multi-Sector Fixed Income Fund, Phoenix Wealth Accumulator PHOLIO, Phoenix Wealth Builder PHOLIO, Phoenix Wealth Guardian PHOLIO and Phoenix Worldwide Strategies Fund (each a "Fund"), series of Phoenix Opportunities Trust (the "Trust") held on November 21, 2006, shareholders voted on the following proposals:
NUMBER OF ELIGIBLE UNITS VOTED: FOR AGAINST ABSTAIN BROKER NON-VOTES ----------- --------- --------- ------------------ To approve a proposal to permit Phoenix Investment Counsel, Inc. ("PIC") to hire and replace subadvisers or to modify subadvisory agreements without shareholder approval. [ ] Phoenix Bond Fund.................................... 7,684,290 148,429 37,867 1,259,749 [ ] Phoenix CA Tax-Exempt Bond Fund...................... 1,912,042 195,451 74,932 562,021 [ ] Phoenix Core Bond Fund............................... 4,710,946 279,061 183,486 980,275 [ ] Phoenix Diversifier PHOLIO........................... 127,473 0 14,464 35,569 [ ] Phoenix Global Utilities Fund........................ 1,312,372 15,454 51,100 87,183 [ ] Phoenix High Yield Fund.............................. 15,409,334 1,090,217 767,003 3,281,118 [ ] Phoenix International Strategies Fund................ 3,880,989 146,326 223,679 777,002 [ ] Phoenix Market Neutral Fund.......................... 5,057,708 167,895 139,851 4,291,290 [ ] Phoenix Money Market Fund............................ 50,388,385 3,473,539 1,453,689 2,513,133 [ ] Phoenix Multi-Sector Fixed Income Fund............... 6,393,533 351,748 279,441 1,989,024 [ ] Phoenix Wealth Accumulator PHOLIO.................... 208,842 10,931 15,080 49,845 [ ] Phoenix Wealth Builder PHOLIO........................ 3,443,616 379,567 117,294 1,734,959 [ ] Phoenix Wealth Guardian PHOLIO....................... 2,086,843 84,748 110,659 622,128 [ ] Phoenix Worldwide Strategies Fund.................... 5,472,680 487,664 177,804 1,661,608 To approve the amendment of fundamental investment restrictions of the Fund with respect to loans. [ ] Phoenix Bond Fund.................................... 7,734,068 79,671 56,846 1,259,749 [ ] Phoenix CA Tax-Exempt Bond Fund...................... 1,914,755 165,826 101,844 562,021 [ ] Phoenix Core Bond Fund............................... 4,680,828 277,386 215,279 980,275 [ ] Phoenix Diversifier PHOLIO........................... 127,473 1,448 13,016 35,569 [ ] Phoenix Emerging Markets Bond Fund................... 2,258,847 202,797 85,045 989,641 [ ] Phoenix Global Utilities Fund ....................... 1,320,886 6,895 51,145 87,183 [ ] Phoenix Growth Opportunities Fund.................... 402,298 5,203 3,469 139,938 [ ] Phoenix High Yield Fund.............................. 15,338,128 1,075,824 852,602 3,281,118 [ ] Phoenix International Strategies Fund................ 3,888,358 124,237 238,398 777,002 [ ] Phoenix Market Neutral Fund ......................... 5,026,188 185,697 153,569 4,291,290 [ ] Phoenix Money Market Fund............................ 50,527,502 3,140,624 1,647,487 2,513,133 [ ] Phoenix Multi-Sector Fixed Income Fund............... 6,437,994 283,823 302,905 1,989,024 [ ] Phoenix Wealth Accumulator PHOLIO.................... 204,576 15,068 15,210 49,845 [ ] Phoenix Wealth Builder PHOLIO........................ 3,426,540 385,268 128,670 1,734,959 [ ] Phoenix Wealth Guardian PHOLIO....................... 2,098,870 61,969 121,412 622,128 [ ] Phoenix Worldwide Strategies Fund.................... 5,464,190 425,749 248,209 1,661,608 To approve a proposal to reclassify the investment objective of the Investment Objective Funds from fundamental to non-fundamental. [ ] Phoenix Bond Fund.................................... 5,233,743 2,581,524 55,319 1,259,749 [ ] Phoenix Core Bond Fund............................... 4,653,188 248,186 272,119 980,275 [ ] Phoenix CA Tax-Exempt Bond........................... 1,883,615 168,515 130,295 562,021 [ ] Phoenix Emerging Markets Bond Fund................... 2,356,069 119,872 70,748 989,641 [ ] Phoenix High Yield Fund.............................. 15,502,861 1,030,275 733,419 3,281,118 [ ] Phoenix International Strategies Fund................ 3,903,318 107,600 240,074 777,002 [ ] Phoenix Money Market Fund............................ 51,155,724 2,522,855 1,637,033 2,513,133 [ ] Phoenix Multi-Sector Fixed Income Fund............... 6,396,398 339,542 288,782 1,989,024 [ ] Phoenix Wealth Builder PHOLIO........................ 3,411,694 398,714 130,069 1,734,959 [ ] Phoenix Wealth Guardian PHOLIO....................... 2,094,128 71,926 116,196 622,128 [ ] Phoenix Worldwide Strategies Fund.................... 5,511,375 407,893 218,879 1,661,608 Shareholders did NOT approve these proposals for the Phoenix Market Neutral Fund and Phoenix Wealth Builder PHOLIO.
138 RESULTS OF SHAREHOLDER MEETING PHOENIX OPPORTUNITIES TRUST NOVEMBER 21, 2006 (UNAUDITED) FUND MANAGEMENT TABLES (UNAUDITED) Information pertaining to the Trustees and officers of the Trust as of September 30, 2007, 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
- ---------------------------------------------------------------------------------------------------------------------- NAME YEAR OF BIRTH YEAR ELECTED PRINCIPAL OCCUPATION(S) # OF FUNDS IN FUND COMPLEX DURING PAST 5 YEARS AND OVERSEEN BY TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE - ---------------------------------------------------------------------------------------------------------------------- E. Virgil Conway Chairman, Rittenhouse Advisors, LLC (consulting firm) (2001-present). YOB: 1929 Trustee/Director, Phoenix Funds Family (1983-present), Director, Urstadt Biddle Elected: 2002 Property Corp. (1989-present), Consolidated Edison Company of New York, Inc. 55 Funds (1970-2002), Union Pacific Corp. (1978-2002), Accuhealth, Inc. (1994-2002). - ---------------------------------------------------------------------------------------------------------------------- Harry Dalzell-Payne Retired. Trustee/Director, Phoenix Funds Family (1983-present). YOB: 1929 Elected: 1999 55 Funds - ---------------------------------------------------------------------------------------------------------------------- Francis E. Jeffries Director, The Empire District Electric Company (1984-2004). Trustee/Director, YOB: 1930 Phoenix Funds Complex (1987-present). Elected: 2005 58 Funds - ---------------------------------------------------------------------------------------------------------------------- Leroy Keith, Jr. Managing Director, Almanac Capital Management (commodities business) (since YOB: 1939 2007). Director/Trustee, Evergreen Funds (93 portfolios) (1989-present). Elected: 2005 Trustee, Phoenix Funds Family (1980-present). Director, Lincoln Educational 55 Funds Services Corp. (2002-2004). Partner, Stonington Partners, Inc. (private equity firm) (2001-2007). - ---------------------------------------------------------------------------------------------------------------------- Geraldine M. McNamara Retired. Trustee/Director, Phoenix Funds Complex (2001-present). Managing YOB: 1951 Director, U.S. Trust Company of New York (private bank) (1982-2006). Elected: 2001 57 Funds - ---------------------------------------------------------------------------------------------------------------------- James M. Oates Trustee/Director, Phoenix Funds Family (1987-present). Managing Director, Wydown YOB: 1946 Group (consulting firm) (1994-present). Director, Investors Bank & Trust Elected: 2005 Corporation (1995-present), Stifel Financial (1996-present). Independent 55 Funds Chairman (2005-present) and Trustee (2004-present), John Hancock Trust (93 portfolios). Trustee, John Hancock Funds II (74 portfolios) (2005-present). Director/Trustee, Plymouth Rubber Co. (1995-2003). Chairman, Hudson Castle Group, Inc. (Formerly IBEX Capital Markets, Inc.) (financial services) (1997-2006). Trustee, John Hancock Funds III (8 portfolios) (2005-2006). - ---------------------------------------------------------------------------------------------------------------------- Richard E. Segerson Managing Director, Northway Management Company (1998-present). Trustee/Director, YOB: 1946 Phoenix Funds Family (1983-present). Elected: 2005 55 Funds - ---------------------------------------------------------------------------------------------------------------------- Ferdinand L.J. Verdonck Amsterdam Molecular Therapeutics N.V. (biotechnology) (since 2007). Director, YOB: 1942 The JPMorgan European Investment Trust (1998-present), Galapagos N.V. Elected: 2005 (biotechnology) (2005-present). Trustee, Phoenix Funds Family (2004-present). 55 Funds Director, EASDAQ (Chairman) (2001-present), Groupe SNEF (electrical and electronic installation) (1998-present). Managing Director, Almanij N.V. (financial holding company) (1992-2003). Director, KBC Bank and Insurance Holding Company (1992-2003), KBC Bank (1992-2003), KBC Insurance (1992-2003), Kredietbank S.A. Luxembourgeoise (1992-2003), Investco N.V. (private equity company) (1992-2003), Gevaert N.V. (industrial holding company) (1992-2003), Fidea N.V. (insurance company) (1992-2003), Almafin N.V. (real estate investment company) (1992-2003), Centea N.V. (savings bank) (1992-2003), Degussa Antwerpen N.V. (1998-2004), Santens N.V. (textiles) (1999-2004), Dictaphone Corp. (2002-2006), Banco Urquijo (Chairman) (1998-2006). - ----------------------------------------------------------------------------------------------------------------------
139 FUND MANAGEMENT TABLES (UNAUDITED)(CONTINUED) INTERESTED TRUSTEES Each of the individuals listed below is an "interested person" of the Trust, as defined in Section 2(a)(19) in the Investment Company Act of 1940, as amended, and the rules and regulations thereunder.
- ---------------------------------------------------------------------------------------------------------------------- NAME YEAR OF BIRTH YEAR ELECTED PRINCIPAL OCCUPATION(S) # OF FUNDS IN FUND COMPLEX DURING PAST 5 YEARS AND OVERSEEN BY TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE - ---------------------------------------------------------------------------------------------------------------------- George R. Aylward(1) Senior Executive Vice President and President, Asset Management (since 2007), YOB: 1964 Senior Vice President and Chief Operating Officer, Asset Management (2004-2007), Elected: 2006 Vice President (2001-2004), The Phoenix Companies, Inc. Director and President 57 Funds (2006-present), Chief Operating Officer (2004-present), Executive Vice President (2004-2006), Vice President, Finance, (2001-2002), Phoenix Investment Partners, Ltd. Various senior officer and directorship positions with Phoenix affiliates. President (2006-present), Executive Vice President (2004-2006), the Phoenix Funds Family. Chairman, President and Chief Executive Officer, The Zweig Fund Inc. and The Zweig Total Return Fund Inc. (2006-present). - ---------------------------------------------------------------------------------------------------------------------- Marilyn E. LaMarche(2) Limited Managing Director, Lazard Freres & Co. LLC (1997-present). YOB: 1934 Trustee/Director, Phoenix Funds Family (2002-present). Director, The Phoenix Elected: 2005 Companies, Inc. (2001-2005). 55 Funds - ---------------------------------------------------------------------------------------------------------------------- Philip R. McLoughlin(3) Partner, Cross Pond Partners, LLC (2006-Present). Director, PXRE Corporation YOB: 1946 (Reinsurance) (1985-present), World Trust Fund (1991-present). Director/Trustee, Elected: 1999 Phoenix Funds Complex (1989-present). Management Consultant (2002-2004), 75 Funds Chairman (1997-2002), Chief Executive Officer (1995-2002) and Director Chairman (1995-2002), Phoenix Investment Partners, Ltd. Director and Executive Vice President, The Phoenix Companies, Inc. (2000-2002). - ----------------------------------------------------------------------------------------------------------------------
(1) Mr. Aylward is an "interested person" as defined in the Investment Company Act of 1940, by reason of his relationship with Phoenix Investment Partners, Ltd. and its affiliates. (2) Ms. LaMarche is an "interested person" as defined in the Investment Company Act of 1940, by reason of her former position as a Director of The Phoenix Companies, Inc. (3) Mr. McLoughlin is an "interested person" as defined in the Investment Company Act of 1940, by reason of his former relationship with Phoenix Investment Partners, Ltd. and its affiliates. 140 FUND MANAGEMENT TABLES (UNAUDITED)(CONTINUED) OFFICERS OF THE FUND WHO ARE NOT TRUSTEES
- -------------------------------------------------------------------------------------------------------------------------------- POSITION(S) HELD WITH NAME, ADDRESS AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) YEAR OF BIRTH TIME SERVED DURING PAST 5 YEARS - -------------------------------------------------------------------------------------------------------------------------------- Nancy G. Curtiss Senior Vice President Assistant Treasurer (2001-present), Vice President, Fund Accounting YOB: 1952 since 2006. (1994-2000), Phoenix Equity Planning Corporation. Vice President, Phoenix Investment Partners, Ltd. (2003-present). Senior Vice President, the Phoenix Funds Family (since 2006). Vice President, The Phoenix Edge Series Fund (1994-present), Treasurer, The Zweig Fund Inc. and The Zweig Total Return Fund Inc. (2003-present). Chief Financial Officer (2005-2006) and Treasurer (1994-2006), or Assistant Treasurer (2005-2006), certain funds within the Phoenix Funds Complex. - -------------------------------------------------------------------------------------------------------------------------------- Francis G. Waltman Senior Vice President Senior Vice President, Asset Management Product Development of The YOB: 1962 since 2004. Phoenix Companies, Inc. (2006-present). Senior Vice President, Asset Management Product Development (2005-present), Senior Vice President and Chief Administrative Officer (2003-2004) of Phoenix Investment Partners, Ltd. Director and President (2006-present) of Phoenix Equity Planning Corporation. Mr. Waltman is also Senior Vice President of Phoenix Investment Counsel, Inc., Director of Duff & Phelps Investment Management Company, Senior Vice President of the Phoenix Funds Family (2004-present). - -------------------------------------------------------------------------------------------------------------------------------- Marc Baltuch Vice President and Chief Compliance Officer, Zweig-DiMenna Associates LLC (1989-present). c/o Zweig-DiMenna Chief Compliance Officer Vice President and Chief Compliance Officer, certain Funds within the Associates, LLC since 2004. Phoenix Funds Complex (2004-present). Vice President, The Zweig Total 900 Third Avenue Return Fund, Inc. (2004-present). Vice President, The Zweig Fund, Inc. New York, NY 10022 (2004-present). President and Director of Watermark Securities, Inc. YOB: 1945 (1991-present). Assistant Secretary of Gotham Advisors Inc. (1990-present). Secretary, Phoenix-Zweig Trust (1989-2003). Secretary, Phoenix-Euclid Market Neutral Fund (1999-2002). - -------------------------------------------------------------------------------------------------------------------------------- W. Patrick Bradley Chief Financial Officer Vice President, Fund Administration, Phoenix Investment Partners, Ltd. YOB: 1972 and Treasurer since 2005. (2004-present). Chief Financial Officer and Treasurer (2006-present) or Chief Financial Officer and Treasurer (2005-present), certain funds within the Phoenix Funds Family. Vice President, Chief Financial Officer, Treasurer and Principal Accounting Officer, The Phoenix Edge Series Fund (2006-present). Assistant Treasurer, certain funds within the Phoenix Funds Complex (2004-2006). Senior Manager (2002-2004), Manager (2000-2002), Audit, Deloitte & Touche, LLP. - -------------------------------------------------------------------------------------------------------------------------------- Kevin J. Carr Vice President, Chief Legal Vice President and Counsel, Phoenix Life Insurance Company One American Row Officer, Counsel and Secretary (2005-present). Vice President, Counsel, Chief Legal Officer and Hartford, CT 06102 since 2005. Secretary, the Phoenix Funds Family (2005-present). Compliance Officer YOB: 1954 of Investments and Counsel, Travelers Life & Annuity Company (January 2005-May 2005). Assistant General Counsel, The Hartford Financial Services Group (1999-2005). - --------------------------------------------------------------------------------------------------------------------------------
141 PHOENIX OPPORTUNITIES TRUST 101 Munson Street Greenfield, MA 01301-9668 TRUSTEES INVESTMENT ADVISER George R. Aylward Phoenix Investment Counsel, Inc. E. Virgil Conway 56 Prospect Street Harry Dalzell-Payne Hartford, CT 06115-0480 Francis E. Jeffries Leroy Keith, Jr. PRINCIPAL UNDERWRITER Marilyn E. LaMarche Phoenix Equity Planning Corporation Philip R. McLoughlin, Chairman One American Row Geraldine M. McNamara Hartford, CT 06103-2899 James M. Oates Richard E. Segerson TRANSFER AGENT Ferdinand L.J. Verdonck Phoenix Equity Planning Corporation One American Row OFFICERS Hartford, CT 06103-2899 George R. Aylward, President Nancy G. Curtiss, Senior Vice President CUSTODIANS Francis G. Waltman, Senior Vice President PFPC Trust Company Marc Baltuch, Vice President and Chief 8800 Tinicum Boulevard Compliance Officer Philadelphia, PA 19155-3111 W. Patrick Bradley, Chief Financial Officer and Treasurer State Street Bank and Trust Company Kevin J. Carr, Vice President, Chief Legal P.O. Box 5501 Officer, Counsel and Secretary Boston, MA 02206-5501 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP 125 High Street Boston, MA 02110-1707 HOW TO CONTACT US Mutual Fund Services 1-800-243-1574 Advisor Consulting Group 1-800-243-4361 Telephone Orders 1-800-367-5877 Text Telephone 1-800-243-1926 Web site PHOENIXFUNDS.COM
- -------------------------------------------------------------------------------- IMPORTANT NOTICE TO SHAREHOLDERS The Securities and Exchange Commission has modified mailing regulations for semiannual and annual shareholder fund reports to allow mutual fund companies to send a single copy of these reports to shareholders who share the same mailing address. If you would like additional copies, please call Mutual Fund Services at 1-800-243-1574. - -------------------------------------------------------------------------------- THIS PAGE INTENTIONALLY BLANK. THIS PAGE INTENTIONALLY BLANK. [BLANK PAGE] --------------- PRSRT STD U.S. POSTAGE PAID [LOGO OMITTED] LANCASTER, PA PHOENIX PERMIT 1793 --------------- Phoenix Equity Planning Corporation P.O. Box 150480 Hartford, CT 06115-0480 For more information about Phoenix mutual funds, please call your financial representative, contact us at 1-800-243-1574 or visit PHOENIXFUNDS.COM. PXP5031 10-07 BPD33233 [GRAPHIC OMITTED] PHOENIX - -------------------------------------------------------------------------------- ANNUAL REPORT PHOENIX FOREIGN OPPORTUNITIES FUND | | WOULDN'T YOU RATHER HAVE THIS TRUST NAME: | | DOCUMENT E-MAILED TO YOU? PHOENIX | | ELIGIBLE SHAREHOLDERS CAN OPPORTUNITIES | | SIGN UP FOR E-DELIVERY AT TRUST | September 30, 2007 | PHOENIXFUNDS.COM ................................................................................. NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE TABLE OF CONTENTS Message to Shareholders ................................................... 1 Glossary .................................................................. 2 Disclosure of Fund Expenses ............................................... 4 Phoenix Foreign Opportunities Fund ........................................ 6 Notes to Financial Statements ............................................. 18 Report of Independent Registered Public Accounting Firm ................... 29 Board of Trustees' Consideration of Investment Advisory and Subadvisory Agreements ............................................. 30 Results of Shareholder Meetings ........................................... 31 Fund Management Tables .................................................... 33 - -------------------------------------------------------------------------------- PROXY VOTING INFORMATION (FORM N-PX) The adviser and subadvisor votes proxies relating to portfolio securities in accordance with procedures that have been approved by the Trust's Board of Trustees. You may obtain a description of these procedures, along with information regarding how the Funds voted proxies during the most recent 12-month period ended June 30, 2007, free of charge, by calling toll-free 1-800-243-1574. This information is also available through the Securities and Exchange Commission's website at http://www.sec.gov. FORM N-Q INFORMATION The Trust files a complete schedule of portfolio holdings with the Securities and Exchange Commission (the "SEC") for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC's website at http://www.sec.gov. Form N-Q may be reviewed and copied at the SEC's Public Reference Room. Information on the operation of the SEC's Public Reference Room can be obtained by calling toll-free 1-800-SEC-0330. - -------------------------------------------------------------------------------- This report is not authorized for distribution to prospective investors in the Phoenix Opportunities Trust unless preceded or accompanied by an effective prospectus which includes information concerning the sales charge, the Fund's record and other pertinent information. MESSAGE TO SHAREHOLDERS Dear PhoenixFunds Shareholder: [GRAPHIC OMITTED] We are pleased to provide this report for the fiscal period ended September 30, 2007. It includes valuable information about your Phoenix mutual fund(s)--such as performance- and fee-related data and information about the fund's portfolio holdings and transactions for the reporting period. The report also provides commentary from your fund's management team with respect to the fund's performance, its investment strategies, and how the fund performed against the broader market. At Phoenix, we are committed to helping investors succeed over the long term and we strive to provide investors with choice. The Phoenix family of funds offers a wide array of investment options to help make diversification easy. Our multi-manager, multi-style approach gives you access to a complete suite of investment products, including numerous equity, fixed income and money market funds. We are proud to offer this diversified portfolio of funds managed by more than a dozen accomplished independent investment managers--many of whom were previously only available to large institutional investors. Their investment expertise allows us to offer a variety of styles, including growth, value and core products, along with asset allocation funds and alternative investments. Phoenix is also committed to providing you best-in-class service. Whether you need to check your account value or transfer funds, our customer service team stands ready to provide superior, dependable assistance to help you make informed decisions. Because we offer such an extensive selection of investment options, it's important that you consult an experienced financial professional for help reviewing or rebalancing your portfolio on a regular basis. A regular "checkup" can be an excellent way to help ensure that your investments are aligned with your financial goals. As president of Phoenix Investment Partners, Ltd., I would like to thank you for entrusting your assets with us. It's our privilege to serve you. Sincerely yours, /s/ George R. Aylward George R. Aylward President, PhoenixFunds OCTOBER 2007 1 GLOSSARY ADR (AMERICAN DEPOSITARY RECEIPT) Represents shares of foreign companies traded in U.S. dollars on U.S. exchanges that are held by a bank or a trust. Foreign companies use ADRs in order to make it easier for Americans to buy their shares. CHF Swiss Franc FHLB Federal Home Loan Bank MSCI EAFE(R) Index A free float-adjusted market capitalization index that measures developed foreign market equity performance, excluding the U.S. and Canada. The index is calculated on a total return basis with gross dividends reinvested. SPONSORED ADR (AMERICAN DEPOSITARY RECEIPT) An ADR which is issued with the cooperation of the company whose stock will underlie the ADR. These shares carry all the rights of the common share such as voting rights. ADRs must be sponsored to be able to trade on the NYSE. S&P 500(R) INDEX The S&P 500(R) Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. VIRT-X EXCHANGE Pan-European Blue Chip Stock Exchange. INDEXES ARE UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT; THEREFORE, THEIR PERFORMANCE DOES NOT REFLECT THE EXPENSES ASSOCIATED WITH ACTIVE MANAGEMENT OF AN ACTUAL PORTFOLIO. 2 THIS PAGE INTENTIONALLY BLANK. PHOENIX FOREIGN OPPORTUNITIES FUND DISCLOSURE OF FUND EXPENSES (UNAUDITED) FOR THE SIX-MONTH PERIOD OF APRIL 1, 2007 TO SEPTEMBER 30, 2007 We believe it is important for you to understand the impact of costs on your investment. All mutual funds have operating expenses. As a shareholder of the Phoenix Foreign Opportunities Fund (the "Fund"), a fund in the Phoenix Opportunities Trust Fund you may incur two types of costs: (1) transaction costs, including sales charges on purchases of Class A shares and contingent deferred sales charges on Class C shares; and (2) ongoing costs, including investment advisory fees; distribution and service fees; and other expenses. Class I shares are sold without a sales charge and do not incur distribution and service fees. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period. The following Expense Tables illustrate your fund's costs in two ways. ACTUAL EXPENSES This section of the accompanying tables provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading "Expenses Paid During Period" to estimate the expenses you paid on your account during the period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES This section of the accompanying tables provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not your Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the accompanying tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges or contingent deferred sales charges. Therefore, the second section of the accompanying tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions. 4 PHOENIX FOREIGN OPPORTUNITIES FUND DISCLOSURE OF FUND EXPENSES (UNAUDITED) (CONTINUED) FOR THE SIX-MONTH PERIOD OF APRIL 1, 2007 TO SEPTEMBER 30, 2007 EXPENSE TABLE - -------------------------------------------------------------------------------- Beginning Ending Expenses Account Account Annualized Paid Value Value Expense During 4/1/07 9/30/07 Ratio Period* - -------------------------------------------------------------------------------- FOREIGN OPPORTUNITIES FUND - -------------------------------------------------------------------------------- ACTUAL Class I $1,000.00 $1,116.60 1.11% $ 5.89 Class A 1,000.00 1,115.10 1.36 7.21 Class C 1,000.00 1,111.10 2.11 11.17 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class I 1,000.00 1,019.43 1.11 5.63 Class A 1,000.00 1,018.16 1.36 6.90 Class C 1,000.00 1,014.36 2.11 10.71 * Expenses are equal to the Fund's annualized expense ratio which includes waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 365 days to reflect the one-half year period. You can find more information about the Fund's expenses in the Financial Statements section that follows. For additional information on operating expenses and other shareholder costs, refer to the prospectus. 5 PHOENIX FOREIGN OPPORTUNITIES FUND TICKER SYMBOLS: A Share: JVIAX C Share: JVICX I Share: JVXIX [GRAPHIC OMITTED] PHOENIX FOREIGN OPPORTUNITIES FUND ("FOREIGN OPPORTUNITIES FUND") Seeks long-term capital appreciation. THERE IS NO GUARANTEE THAT THE FUND WILL ACHIEVE ITS OBJECTIVE. [GRAPHIC OMITTED] For the fiscal period of March 1, 2007 to September 30, 2007, the Fund's Class I shares returned 14.88%*, Class A shares returned 14.72%* and Class C shares returned 14.24%*. For the same period, the S&P 500(R) Index, a broad-based equity index, returned 9.65%* and the MSCI EAFE(R) Index (Net), which is the Fund's style-specific index appropriate for comparison, returned 11.49%*. * Returns less than 1 year are not annualized. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTION AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. HOW DID THE EQUITY MARKETS PERFORM DURING THE FUND'S FISCAL PERIOD? [GRAPHIC OMITTED] While there are some concerns about the strength of the U.S. economy, the global economy continues to push ahead at a rapid rate. While China gets the lion's share of attention, most emerging economies are expanding at very healthy rates. Japan and Europe are also growing nicely. Stocks tend to track earnings and corporate earnings remain robust with many companies raising dividends and buying back record amounts of stock. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL PERIOD? [GRAPHIC OMITTED] A shift in portfolio weightings, strong positive returns in emerging markets, and the benefits of a weak American dollar helped the Phoenix Foreign Opportunities Fund provide attractive absolute and relative returns during the period March 1, 2007 through September 30, 2007. [GRAPHIC OMITTED] FOREIGN INVESTING INVOLVES SPECIAL RISKS SUCH AS CURRENCY FLUCTUATION AND LESS PUBLIC DISCLOSURE, AS WELL AS ECONOMIC AND POLITICAL RISKS. THE ECONOMICS OF DEVELOPING COUNTRIES MAY BE ADVERSELY AFFECTED BY TRADE BARRIERS, EXCHANGE CONTROLS, MANAGED ADJUSTMENTS IN RELATIVE CURRENCY VALUES AND OTHER PROTAGONIST MEASURES IMPOSED OR NEGOTIATED BY THE COUNTRIES WITH WHICH THEY TRADE. COUNTRY WEIGHTINGS as of 9/30/07** - -------------------------------------------------------------------------------- Switzerland 14% - -------------------------------------------------------------------------------- United Kingdom 13% - -------------------------------------------------------------------------------- India 10% - -------------------------------------------------------------------------------- Australia 6% - -------------------------------------------------------------------------------- Japan 5% - -------------------------------------------------------------------------------- Brazil 4% - -------------------------------------------------------------------------------- Hong Kong 4% - -------------------------------------------------------------------------------- Other (includes short-term investments) 44% - -------------------------------------------------------------------------------- ** % of total investments as of September 30, 2007. 6 PHOENIX FOREIGN OPPORTUNITIES FUND (CONTINUED) AVERAGE ANNUAL TOTAL RETURNS(1) for periods ended 9/30/07 - -------------------------------------------------------------------------------------------
Inception 1 5 10 to Inception Year Years Years 9/30/07 Date ------ ------ ------ ---------- --------- CLASS I SHARES AT NAV(2) 26.59% --% --% 22.37% 5/15/06 - ------------------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) 26.30 24.71 9.46 -- -- - ------------------------------------------------------------------------------------------- CLASS A SHARES AT POP(3,4) 19.04 23.24 8.82 -- -- - ------------------------------------------------------------------------------------------- CLASS C SHARES AT NAV(2) 25.35 -- -- 24.42 10/10/03 - ------------------------------------------------------------------------------------------- CLASS C SHARES WITH CDSC(4) 25.35 -- -- 24.42 10/10/03 - ------------------------------------------------------------------------------------------- S&P 500(R) INDEX 16.44 15.46 6.58 Note 5 -- - ------------------------------------------------------------------------------------------- MSCI EAFE(R) INDEX (NET) 24.87 23.55 7.97 Note 6 -- - ------------------------------------------------------------------------------------------- FUND EXPENSE RATIOS(7): I SHARES: GROSS 1.18%; NET 1.10%, A SHARES: GROSS 1.43%, NET 1.35%, C SHARES: GROSS 2.18%, NET 2.10%. ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 5.75% SALES CHARGE. (4) CDSC (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO REDEMPTIONS OF CERTAIN CLASSES OF SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE. CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. (5) INDEX PERFORMANCE IS 12.86% FOR CLASS C (SINCE 10/10/03) AND 14.91% FOR CLASS I (SINCE 5/15/06). (6) INDEX PERFORMANCE IS 21.23% FOR CLASS C (SINCE 10/10/03) AND 17.20% FOR CLASS I (SINCE 5/15/06). (7) PER PROSPECTUS EFFECTIVE 9/24/07. NET EXPENSE: EXPENSES REDUCED BY A CONTRACTUAL FEE WAIVER IN EFFECT THROUGH AT LEAST 6/30/08. GROSS EXPENSE: DOES NOT REFLECT THE EFFECT OF CONTRACTUAL FEE WAIVER.
GROWTH OF $10,000 for periods ended 9/30/07 - -------------------------------------------------------------------------------- [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA USED IN PRINTED GRAPHIC AS FOLLOWS: MSCI EAFE INDEX S&P 500 Share Class A (1)(3)(4) (Net) Index ----------------------- --------- ------- 9/30/97 $ 9,425 $10,000 $10,000 9/30/98 8,774 9,166 10,915 9/30/99 11,375 12,004 13,942 9/30/00 12,779 12,385 15,805 9/30/01 8,333 8,851 11,596 9/30/02 7,715 7,477 9,221 9/30/03 9,229 9,421 11,473 9/30/04 11,323 11,501 13,064 9/30/05 14,811 14,468 14,663 9/30/06 18,429 17,240 16,246 9/30/07 23,275 21,527 18,917 For information regarding the indexes, see the glossary section on page 2. 7 PHOENIX FOREIGN OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 VALUE SHARES (000) ----------- ---------- FOREIGN COMMON STOCKS(c)--91.1% AUSTRALIA--7.2% Aristocrat Leisure Ltd. (Casinos & Gaming)(g) 1,575,015 $ 19,427 BHP Billiton Ltd. (Diversified Metals & Mining)(g) 430,200 17,006 Rio Tinto Ltd. (Diversified Metals & Mining)(g) 165,768 15,919 Westfield Group (Retail REITs)(g) 692 15 Woolworths Ltd. (Food Retail) 807,625 21,292 WorleyParsons Ltd. (Oil & Gas Equipment & Services) 357,721 13,462 ---------- 87,121 ---------- BELGIUM--3.7% Colruyt SA (Food Retail)(g) 40,780 8,615 InBev N.V. (Brewers)(g) 400,745 36,321 ---------- 44,936 ---------- BRAZIL--5.0% Banco Itau Holding Financieira SA Sponsored ADR (Diversified Banks)(g) 349,350 17,684 Cia Vale do Rio Doce ADR (Diversified Metals & Mining) 777,400 26,377 Petroleo Brasileiro SA Sponsored ADR (Integrated Oil & Gas) 208,361 15,731 ---------- 59,792 ---------- CANADA--3.1% Canadian Natural Resources Ltd. (Oil & Gas Exploration & Production)(g) 388,120 29,414 Power Corp. of Canada (Life & Health Insurance)(g) 212,627 8,551 ---------- 37,965 ---------- VALUE SHARES (000) ----------- ---------- FRANCE--2.8% Air Liquide (Industrial Gases)(g) 89,500 $ 11,977 Total SA (Integrated Oil & Gas)(g) 249,680 20,295 Total SA Sponsored ADR (Integrated Oil & Gas)(f) 14,914 1,208 ---------- 33,480 ---------- GERMANY--3.1% Deutsche Boerse AG (Specialized Finance) 139,800 19,032 Siemens AG (Industrial Conglomerates)(g) 134,000 18,416 ---------- 37,448 ---------- HONG KONG--5.5% China Mobile Ltd. (Wireless Telecommunication Services) 872,500 14,288 China Mobile Ltd. ADR (Wireless Telecommunication Services)(g) 128,000 10,501 CNOOC Ltd. (Oil & Gas Exploration & Production) 13,792,800 23,172 Jardine Matheson Holdings Ltd. (Multi-Sector Holdings) 634,165 18,137 ---------- 66,098 ---------- INDIA--6.0% Bharti Airtel Ltd. (Integrated Telecommunication Services)(b) 510,200 12,034 HDFC Bank Ltd. (Diversified Banks) 120,800 4,352 HDFC Bank Ltd. ADR (Diversified Banks)(g) 383,290 41,062 Housing Development Finance Corp. (Consumer Finance) 244,600 15,517 ---------- 72,965 ---------- See Notes to Financial Statements 8 PHOENIX FOREIGN OPPORTUNITIES FUND VALUE SHARES (000) ----------- ---------- IRELAND--0.0% Anglo Irish Bank Corp. plc (Diversified Banks)(g) 2 $ --(k) JAPAN--6.4% Millea Holdings, Inc. (Property & Casualty Insurance)(g) 918,100 36,920 Park24 Co. Ltd. (Environmental & Facilities Services)(g) 1,352,800 12,165 Toyota Motor Corp. (Automobile Manufacturers)(g) 468,800 27,666 ---------- 76,751 ---------- MEXICO--4.0% America Movil S.A. de C.V. Series L (Wireless Telecommunication Services) 1,321,300 4,228 America Movil S.A.B. de C.V. ADR Series L (Wireless Telecommunication Services) 383,753 24,560 Grupo Modelo S.A. de C.V. Series C (Brewers)(g) 3,928,090 18,855 ---------- 47,643 ---------- NETHERLANDS--1.9% Schlumberger Ltd. (Oil & Gas Equipment & Services)(g) 20,000 2,120 Schlumberger Ltd. ADR (Oil & Gas Equipment & Services) 195,300 20,507 ---------- 22,627 ---------- NORWAY--3.0% Orkla ASA (Industrial Conglomerates) 2,016,175 36,010 SPAIN--3.3% Enagas S.A. (Gas Utilities)(g) 1,040,101 26,957 Red Electrica de Espana (Electric Utilities) 259,433 13,447 ---------- 40,404 ---------- VALUE SHARES (000) ----------- ---------- SWEDEN--4.2% Atlas Copco AB - Class B Shares (Industrial Machinery) 1,210,700 $ 19,344 Investor AB - Class B Shares (Multi-Sector Holdings) 575,500 14,771 Sandvik AB (Industrial Machinery) 782,800 16,794 ---------- 50,909 ---------- SWITZERLAND--16.3% ABB Ltd. Registered Shares (Heavy Electrical Equipment) 921,500 24,261 Compagnie Financiere Richemont AG Class A (Apparel, Accessories & Luxury Goods) 277,800 18,401 EFG International (Asset Management & Custody Banks) 219,417 10,328 Geberit AG (Building Products) 68,100 8,908 Kuehne & Nagel International AG (Marine) 277,986 27,363 Lindt & Spruengli AG (Packaged Foods & Meats) 2,912 10,127 Nestle S.A. Registered Shares (Packaged Foods & Meats)(i) 83,798 37,643 Nestle S.A. Registered Shares (Packaged Foods & Meats)(j) 6,600 2,965 Paris RE Holdings Ltd. (Multi-line Insurance)(b) 215,140 5,184 Roche Holding AG Registered Shares (Pharmaceuticals) 226,302 41,033 UBS AG Registered Shares (Diversified Capital Markets) 200,500 10,781 ---------- 196,994 ---------- UNITED KINGDOM--15.6% British American Tobacco plc (Tobacco) 1,503,426 53,891 See Notes to Financial Statements 9 PHOENIX FOREIGN OPPORTUNITIES FUND VALUE SHARES (000) ----------- ---------- UNITED KINGDOM--CONTINUED Diageo plc (Distillers & Vintners) 897,414 $ 19,720 HBOS plc (Diversified Banks) 73 1 Imperial Tobacco Group plc (Tobacco) 628,072 28,798 Reckitt Benckiser plc (Household Products) 413,791 24,315 SABMiller plc (Brewers) 740,045 21,064 Tesco plc (Food Retail) 4,451,913 40,009 ---------- 187,798 - -------------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $889,832) 1,098,941 - -------------------------------------------------------------------------------- EQUITY LINKED CERTIFICATES--5.5% INDIA--5.5% CLSA Financial Products Ltd. - Bharti-Tele Ventures Strike price .000001 Indian Rupee expiration 5/31/10 (Broadcasting & Cable TV)(b) 1,820,211 43,077 CLSA Financial Products Ltd. - HDFC Bank Ltd. Class A Strike price .000001 Indian Rupee expiration 6/28/10 (Diversified Banks)(b) 295,685 10,674 JPMorgan Chase International - HDFC Strike price .0001 Indian Rupee expiration date 5/25/09 (Regional Banks)(b) 196,490 12,486 - -------------------------------------------------------------------------------- TOTAL EQUITY LINKED CERTIFICATES (IDENTIFIED COST $43,283) 66,237 - -------------------------------------------------------------------------------- VALUE SHARES (000) ----------- ---------- FOREIGN OPTIONS--0.1% SWITZERLAND--0.1% Roche Holdings AG - Registered Shares Call Option exercise price 160 CHF, expiration date 12/18/09 (Pharmaceuticals)(e) 29,500 $ 1,497 - -------------------------------------------------------------------------------- TOTAL FOREIGN OPTIONS (IDENTIFIED COST $1,611) 1,497 - -------------------------------------------------------------------------------- TOTAL LONG-TERM INVESTMENTS--96.7% (IDENTIFIED COST $934,726) 1,166,675 - -------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS--24.3% MONEY MARKET MUTUAL FUNDS--20.6% State Street Navigator Prime Plus (5.30% seven-day effective yield)(h) 248,467,601 248,468 PAR VALUE (000) ----------- FEDERAL AGENCY SECURITIES(d)--3.7% FHLB 4.000% due 10/1/07 $22,250 22,250 FHLB 4.570% due 10/3/07(g) 11,020 11,017 FHLB 4.450% due 10/11/07 10,995 10,982 ---------- 44,249 - -------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $292,717) 292,717 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS--121.0% (IDENTIFIED COST $1,227,443) 1,459,392(a) Other assets and liabilities, net--(21.0)% (252,841) ---------- NET ASSETS--100.0% $1,206,551 ========== See Notes to Financial Statements 10 PHOENIX FOREIGN OPPORTUNITIES FUND At September 30, 2007, the Fund had entered into forward currency contracts as follows (reported in 000's): Unrealized Contract In Exchange Settlement Appreciation to Sell for Date Value (Depreciation) - -------------- ------------ ---------- -------- -------------- GBP 46,500 USD 93,597 3/26/08 $(94,687) $(1,090) GBP 23,250 USD 46,595 3/26/08 (47,343) (748) ------- $(1,838) ======= GBP British Pound Sterling USD United States Dollar (a) Federal Income Tax Information (reported in 000's): Net unrealized appreciation of investment securities is comprised of gross appreciation of $240,148 and gross depreciation of $10,217 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $1,229,461. (b) Non-income producing. (c) A security is considered to be foreign if the security is issued in a foreign country. The country of risk, noted in the header, is determined based on criteria described in Note 2G, "Foreign security country determination" in the Notes to Financial Statements. (d) The rate shown is the discount rate. (e) Illiquid security. (f) All or a portion segregated as collateral for forward currency contracts. (g) All or a portion of security is on loan. (h) Represents security purchased with cash collateral received for securities on loan. (i) Security traded on Virt-x exchange. (j) Security traded on Swiss exchange. (k) Amount is less than $1,000. See Notes to Financial Statements 11 PHOENIX FOREIGN OPPORTUNITIES FUND STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 2007 (Reported in thousands except per share amounts) ASSETS Investment securities at value+@ ............................... $1,459,392 Foreign currency at value* ..................................... 350 Cash ........................................................... 8 Receivables Investment securities sold .................................. 41,084 Fund shares sold ............................................ 6,776 Dividends ................................................... 2,321 Tax reclaims ................................................ 280 Receivable from non-affiliate (See Note 5) .................. 1 Interest .................................................... --++ Prepaid expenses ............................................... 92 Other assets ................................................... 41 ---------- Total assets ............................................. 1,510,345 ---------- LIABILITIES Payables Fund shares repurchased ..................................... 4,063 Investment securities purchased ............................. 47,171 Upon return of securities loaned ............................ 248,468 Foreign capital gain taxes .................................. 792 Investment advisory fee ..................................... 774 Distribution and service fees ............................... 212 Transfer agent fee .......................................... 125 Administration fee .......................................... 75 Trustee deferred compensation plan .......................... 41 Professional fee ............................................ 32 Trustees' fee ............................................... 9 Other accrued expenses ...................................... 194 Unrealized depreciation on forward currency contracts .......... 1,838 ---------- Total liabilities ........................................ 303,794 ---------- NET ASSETS ..................................................... $1,206,551 ========== NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest ............... $ 976,118 Undistributed net investment income ............................ 7,615 Accumulated net realized loss .................................. (6,724) Net unrealized appreciation .................................... 229,542 ---------- NET ASSETS ..................................................... $1,206,551 ========== CLASS I Net asset value, offering price and redemption price per share (net assets/shares outstanding) ............................. $28.61 Shares of beneficial interest outstanding, $0.001 par value, unlimited authorization ..................................... 15,099 Net Assets ..................................................... $ 431,985 CLASS A Net asset value per share (net assets/shares outstanding) ...... $28.58 Offering price per share $28.58/(1-5.75%) ...................... $30.32 Shares of beneficial interest outstanding, $0.001 par value, unlimited authorization ..................................... 23,364 Net Assets ..................................................... $ 667,719 CLASS C Net asset value and offering price per share (net assets/shares outstanding) ............................. $28.31 Shares of beneficial interest outstanding, $0.001 par value, unlimited authorization ..................................... 3,774 Net Assets ..................................................... $ 106,847 + Investment securities at cost $1,227,443 * Foreign currency at cost $ 350 @ Market value of securities on loan $ 239,909 ++ Amount is less than $1,000. See Notes to Financial Statements 12 PHOENIX FOREIGN OPPORTUNITIES FUND STATEMENT OF OPERATIONS (Reported in thousands) 3/1/07- 3/1/06- 9/30/07 2/28/07 -------- ------- INVESTMENT INCOME Dividends........................................ $ 14,742 $ 5,227 Interest......................................... 1,155 824 Security lending................................. 266 -- Foreign taxes withheld........................... (899) (431) -------- ------- Total investment income.................... 15,264 5,620 -------- ------- EXPENSES Investment advisory fee.......................... 4,697 2,210 Service fees, Class A............................ 776 498 Distribution and service fees, Class C........... 456 163 Financial agent fee.............................. -- 36 Administration fee............................... 488 148 Transfer agent................................... 562 270 Custodian........................................ 289 144 Printing......................................... 122 100 Professional..................................... 52 38 Registration..................................... 71 58 Trustees......................................... 44 34 Miscellaneous.................................... 56 19 -------- ------- Total expenses............................. 7,613 3,718 Less expenses reimbursed by investment adviser... (240) (145) Custodian fees paid indirectly................... (6) (4) -------- ------- Net expenses............................... 7,367 3,569 -------- ------- NET INVESTMENT INCOME (LOSS)..................... 7,897 2,051 -------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments.......... 10,841 23,320 Net realized gain (loss) on foreign currency transactions.................................. (7,915) (1,663) Net change in unrealized appreciation (depreciation) on investments 110,889 23,190 Net change in unrealized appreciation (depreciation) on foreign currency translations.................................. (681) (1,901) -------- ------- NET GAIN (LOSS) ON INVESTMENTS................... 113,134 42,946 -------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................... $121,031 $44,997 ======== ======= See Notes to Financial Statements 13 PHOENIX FOREIGN OPPORTUNITIES FUND STATEMENT OF CHANGES IN NET ASSETS (Reported in thousands)
3/1/07- 3/1/06- 3/1/05- 9/30/07 2/28/07 2/28/06 ---------- -------- -------- FROM OPERATIONS Net investment income (loss) ..................... $ 7,897 $ 2,051 $ 1,294 Net realized gain (loss) ......................... 2,926 21,657 10,027 Net change in unrealized appreciation (depreciation) ................................ 110,208 21,289 9,996 ---------- -------- -------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............................... 121,031 44,997 21,317 ---------- -------- -------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class I ................... (1,056) (499) -- Net investment income, Class A ................... (1,345) (1,513) (872) Net investment income, Class C ................... (130) (46) (26) Net investment income, Investor Class ............ -- -- (399) Net investment income, Class I ................... -- -- (7) Net realized short-term gains, Class I ........... (128) (249) -- Net realized short-term gains, Class A ........... (180) (800) (207) Net realized short-term gains, Class C ........... (25) (56) (4) Net realized long-term gains, Class I ............ (378) (1,110) -- Net realized long-term gains, Class A ............ (538) (4,377) (6,509) Net realized long-term gains, Class C ............ (76) (388) (188) Net realized long-term gains, Investor Class ..... -- -- (443) Net realized long-term gains, Class I ............ -- -- (8) ---------- -------- -------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS ............................... (3,856) (9,038) (8,663) ---------- -------- -------- FROM SHARE TRANSACTIONS (SEE NOTE 5 AND NOTE 11) Change in net assets from share transactions, Class I (f/k/a Class X)(1) .................... 309,681 77,166 -- Change in net assets from share transactions, Class A ....................................... 238,239 204,396 112,271 Change in net assets from share transactions, Class C ....................................... 51,541 37,383 5,673 Change in net assets from share transactions, Investor Class (2) ............................ -- -- (92,621) Change in net assets from share transactions, Class I (2) ................................... -- -- (1,647) ---------- -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS ............................ 599,461 318,945 23,676 ---------- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS ............ 716,636 354,904 36,330 NET ASSETS Beginning of period .............................. 489,915 135,011 98,681 ---------- -------- -------- END OF PERIOD .................................... $1,206,551 $489,915 $135,011 ========== ======== ======== Undistributed net investment income (distributions in excess of net investment income) ........................... $ 7,615 $ (1,463) $ (323) (1) Inception date for Class I - 5/15/06 (2) Effective June 20, 2005, Investor Class shares and Class I shares were converted to Class A shares.
See Notes to Financial Statements 14 THIS PAGE INTENTIONALLY BLANK. PHOENIX FOREIGN OPPORTUNITIES FUND FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
NET NET ASSET NET REALIZED TOTAL DIVIDENDS DISTRIBUTIONS PAYMENT VALUE, INVESTMENT AND FROM FROM NET FROM NET BY BEGINNING INCOME UNREALIZED INVESTMENT INVESTMENT REALIZED RETURN OF TOTAL AFFILIATE/ OF PERIOD (LOSS) GAIN (LOSS) OPERATIONS INCOME GAINS CAPITAL DISTRIBUTIONS NON-AFFILIATE - ------------------------------------------------------------------------------------------------------------------------------------ CLASS I 3/1/07-9/30/07 $25.00 0.25(4) 3.47 3.72 (0.07) (0.04) -- (0.11) --(5)(8) 5/15/06(6)-2/28/07 22.54 0.13(4) 3.14 3.27 (0.22) (0.59) -- (0.81) -- CLASS A 3/1/07-9/30/07 $25.00 0.22(4) 3.46 3.68 (0.06) (0.04) -- (0.10) --(5)(8) 3/1/06-2/28/07 21.47 0.21(4) 4.08 4.29 (0.17) (0.59) -- (0.76) -- 3/1/05-2/28/06 19.02 0.17(4) 3.85 4.02 (0.22) (1.35) -- (1.57) -- 3/1/04-2/28/05 15.47 0.16 3.81 3.97 (0.16) (0.26) -- (0.42) --(5)(7) 1/1/04-2/29/04 14.84 (0.03) 0.66 0.63 -- -- -- -- -- 1/1/03-12/31/03 11.86 0.12 3.39 3.51 (0.06) (0.43) (0.06) (0.55) 0.02 1/1/02-12/31/02 12.88 0.03 (1.05) (1.02) -- -- -- -- -- CLASS C 3/1/07-9/30/07 $24.85 0.10(4) 3.44 3.54 (0.04) (0.04) -- (0.08) --(5)(8) 3/1/06-2/28/07 21.41 (0.01)(4) 4.11 4.10 (0.07) (0.59) -- (0.66) -- 3/1/05-2/28/06 19.11 (0.06)(4) 3.92 3.86 (0.21) (1.35) -- (1.56) -- 3/1/04-2/28/05 15.55 0.01 3.84 3.85 (0.03) (0.26) -- (0.29) --(5)(7) 1/1/04-2/29/04 14.95 (0.06) 0.66 0.60 -- -- -- -- -- 10/10/03(6)-12/31/03 13.91 0.11 1.34 1.45 -- (0.43) -- (0.43) 0.02 RATIO OF NET RATIO OF RATIO OF NET OPERATING GROSS NET CHANGE ASSET NET ASSETS, EXPENSES TO OPERATING INVESTMENT IN NET VALUE, END OF AVERAGE EXPENSES TO INCOME (LOSS) ASSET END OF TOTAL PERIOD NET AVERAGE TO AVERAGE PORTFOLIO VALUE PERIOD RETURN(1) (000'S) ASSETS NET ASSETS NET ASSETS TURNOVER - ---------------------------------------------------------------------------------------------------------------------------- CLASS I 3/1/07-9/30/07 3.61 $28.61 14.88%(3) $431,985 1.11%(2) 1.15%(2) 1.59%(2) 49%(3) 5/15/06(6)-2/28/07 2.46 25.00 14.84(3) 83,938 1.13(2) 1.17(2) 0.71(2) 57(3) CLASS A 3/1/07-9/30/07 3.58 $28.58 14.72%(3) $667,719 1.36%(2) 1.40%(2) 1.44%(2) 49%(3) 3/1/06-2/28/07 3.53 25.00 20.39 360,822 1.37 1.43 0.88 57 3/1/05-2/28/06 2.45 21.47 21.82 128,991 1.25 1.62 0.85 52 3/1/04-2/28/05 3.55 19.02 26.15(7) 2,714 1.25 2.10 1.50 32 1/1/04-2/29/04 0.63 15.47 4.25(3) 1,482 1.25(2) 2.63(2) 0.18(2) 41(3) 1/1/03-12/31/03 2.98 14.84 30.07 1,473 2.87 3.21 0.11 65 1/1/02-12/31/02 (1.02) 11.86 (7.92) 29,026 2.44 2.44 0.18 98 CLASS C 3/1/07-9/30/07 3.46 $28.31 14.24%(3) $106,847 2.11%(2) 2.16%(2) 0.64%(2) 49%(3) 3/1/06-2/28/07 3.44 24.85 19.46 45,154 2.13 2.17 (0.06) 57 3/1/05-2/28/06 2.30 21.41 20.96 6,019 2.00 2.35 (0.29) 52 3/1/04-2/28/05 3.56 19.11 25.21 39 2.00 2.86 0.76 32 1/1/04-2/29/04 0.60 15.55 4.01(3) 12 2.00(2) 3.38(2) (1.05)(2) 41(3) 10/10/03(6)-12/31/03 1.04 14.95 10.71(3) 11 1.92(2) 5.85(2) (0.14)(2) 65(3) (1) Sales charges, where applicable, are not reflected in the total return calculation. (2) Annualized. (3) Not annualized. (4) Computed using average shares outstanding. (5) Amount is less than $0.01. (6) Inception date. (7) Payment by affiliate. See Note 3 in the Notes to Financial Statements. (8) Payment by non-affiliate. See Note 5 in the Notes to Financial Statements.
See Notes to Financial Statements 16 and 17 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 1. ORGANIZATION Phoenix Opportunities Trust (the "Trust") is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. As a result of a consolidation of several Phoenix trusts, the Trust acquired a number of Phoenix Funds effective June 27, 2007 and September 24, 2007, including Phoenix Foreign Opportunities Fund (the "Fund"). All the acquired funds' year ends were changed to correspond with the Trust's September 30th year end. As of the date of this report, nineteen funds are offered for sale, of which the Fund is reported in this annual report. The Fund's investment objective is outlined in the fund summary page. The Foreign Opportunities Fund offers Class I shares, Class A shares and Class C shares for sale. Class I shares are sold without a sales charge. Class A shares are sold with a front-end sales charge of up to 5.75%. Generally, Class A shares are not subject to any charges when redeemed; however, a 1% contingent deferred sales charge may be imposed on certain redemptions within one year on purchases on which a finder's fee has been paid. Class C shares are generally sold with a 1% contingent deferred sales charge if redeemed within one year of purchase. Each class of shares has identical voting, dividend, liquidation and other rights and the same terms and conditions, except that each class bears different distribution and/or service expenses and has exclusive voting rights with respect to its distribution plan. Class I bears no distribution and/or service expenses. Income and other expenses and realized and unrealized gains and losses of the Fund are borne pro rata by the holders of each class of shares. 2. SIGNIFICANT ACCOUNTING POLICIES 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 and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. A. SECURITY VALUATION: Equity securities are valued at the official closing price (typically last sale) on the exchange on which the securities are primarily traded, or if no closing price is available, 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. As required, some securities and assets may be valued at fair value as determined in good faith by or under the direction of the Trustees. 18 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) Certain foreign common stocks may be fair valued in cases where closing prices are not readily available or are deemed not reflective of readily available market prices. For example, significant events (such as movement in the U.S. securities market, or other regional and local developments) may occur between the time that foreign markets close (where the security is principally traded) and the time that the Fund calculates its net asset value (generally, the close of the NYSE) that may impact the value of securities traded in these foreign markets. In these cases, information from an external vendor may be utilized to adjust closing market prices of certain foreign common stocks to reflect their fair value. Because the frequency of significant events is not predictable, fair valuation of certain foreign common stocks may occur on a frequent basis. Short-term investments having a remaining maturity of 60 days or less are valued at amortized cost, which approximates market. In September 2006, Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("SFAS 157"), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures. 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 Fund amortizes premiums and accretes discounts using the effective interest method. Realized gains and losses are determined on the identified cost basis. C. INCOME TAXES: The Fund is treated as a separate taxable entity. It is the policy of each Fund in the Trust to comply with the requirements of the Internal Revenue Code and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes or excise taxes has been made. The Fund may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable based upon current interpretations of the tax rules and regulations that exist in the markets in which it invests. In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation 48 ("FIN 48"), "Accounting for Uncertainty in Income Taxes." This standard defines the threshold for recognizing the benefits of tax-return positions in the financial statements as "more-likely-than-not" to be sustained by the taxing authority and requires measurement of a tax position meeting the more-likely-than-not criterion, based on the largest benefit that is more than 50 percent likely to be realized. Management has analyzed the Funds' tax positions taken on federal income tax returns for all open tax years (tax years ended December 31, 2003 - 2006) for purposes of implementing FIN 48, and has concluded that no provision for income tax is required in the Funds' financial statements. 19 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) D. DISTRIBUTIONS TO SHAREHOLDERS: Distributions are recorded by the Fund on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences may include the treatment of non-taxable dividends, market premium and discount, non-deductible expenses, expiring capital loss carryovers, foreign currency gain or loss, gain or loss on futures contracts, partnerships, operating losses and losses deferred due to wash sales. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital paid in on shares of beneficial interest. E. EXPENSES: Expenses incurred by the Trust with respect to more than one Fund are allocated in proportion to the net assets of each Fund, except where allocation of direct expense to each Fund or an alternative allocation method can be more appropriately made. F. 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 date 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 isolate that portion of the results of operations arising from either changes in exchange rates or in the market prices of securities. G. FOREIGN SECURITY COUNTRY DETERMINATION: A combination of the following criteria is used to assign the countries of risk listed in the schedule of investments: country of incorporation, actual building address, primary exchange on which the security is traded and country in which the greatest percentage of company revenue is generated. H. FORWARD CURRENCY CONTRACTS: The 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 the Fund as an unrealized gain or loss. When the contract is closed or offset with the same counterparty, the Fund records a realized gain or loss equal to the change in the value of the contract when it was opened and the value at the time it was closed or offset. 20 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) I. SECURITY LENDING: The Fund may loan securities to qualified brokers through an agreement with State Street Bank and Trust Company (the "Custodian"). Under the terms of the agreement, the Fund is required to maintain collateral with a market value not less than 100% of the market value of loaned securities. Collateral is adjusted daily in connection with changes in the market value of securities on loan. Collateral may consist of cash, securities issued or guaranteed by the U.S. Government or its agencies, sovereign debt of foreign countries and/or irrevocable letters of credit issued by banks. Cash collateral is invested in a short-term money market fund. Dividends earned on the collateral and premiums paid by the broker are recorded as income by the Fund net of fees and rebates charged by the Custodian for its services in connection with this securities lending program. Lending portfolio securities involves a risk of delay in the recovery of the loaned securities or in the foreclosure on collateral. At September 30, 2007, the Fund had securities on loan as follows (reported in 000's): MARKET VALUE U.S. GOVERNMENT OF SECURITIES SECURITIES CASH LOANED COLLATERAL COLLATERAL ------------- --------------- ---------- $239,909 $1,123 $248,648 J. EQUITY LINKED CERTIFICATES: The Fund may invest in equity linked certificates. The Fund purchases the certificates ("notes") from a broker, who in turn purchases shares in the local market and issues a call note hedged on the underlying holding. If the Fund exercises its call and closes its position, the shares are sold and the note redeemed with the proceeds. Each note represents one share of the underlying stocks; therefore, the price, performance and liquidity of the note are all directly linked to the underlying stock. The notes can be redeemed for 100% of the value of the underlying stock, less transaction costs. In addition to the market risk of the underlying holding, the Fund bears additional counterparty risk to the issuing broker. K. OPTIONS: The Fund may write covered options or purchase options contracts for the purpose of hedging against changes in the market value of the underlying securities or foreign currencies. The Fund will realize a gain or loss upon the expiration or closing of the option transaction. Gains and losses on written options are reported separately in the Statement of Operations. When a written option is exercised, the proceeds on sales or amounts paid are adjusted by the amount of premium received. Options written are reported as a liability in the Statement of Assets and Liabilities and subsequently marked-to-market to reflect the current value of the option. The risk associated with written options is that the change in value of options contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments, or if a liquid secondary market does not exist for the contracts. The Fund may purchase options which are included in the Trust's Schedules 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. 21 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) 3. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS Phoenix Investment Counsel, Inc. ("PIC") (the "Adviser") is the adviser to the Fund. As compensation for its services to the Fund, PIC, an indirect wholly-owned subsidiary of The Phoenix Companies, Inc. ("PNX"), is entitled to a fee based upon an annual rate of 0.85% as a percentage of the average daily net assets of the Fund. The Adviser has contractually agreed to limit the Fund's total fund operating expenses (excluding interest, taxes, and extraordinary expenses) through June 30, 2008, so that such expenses do not exceed 1.10% for Class I Shares, 1.35% for Class A Shares and 2.10% for Class C Shares. Effective August 23, 2007, the Adviser may recapture operating expenses waived or reimbursed under this arrangement, within three fiscal years following the end of the fiscal year in which such waiver or reimbursement occurred. The Fund must pay its ordinary operating expenses before the Adviser is entitled to any reimbursement and must remain in compliance with applicable expense limitations. All or a portion of reimbursed expenses in the amount of $189 (reported in 000's) may be recaptured by the fiscal year ended 2010. Vontobel Asset Management, Inc. ("Vontobel") is the subadviser to the Fund. As distributor of the Fund's shares, Phoenix Equity Planning Corporation ("PEPCO"), an indirect wholly-owned subsidiary of PNX, has advised the Fund that it retained net selling commissions and deferred sales charges for the fiscal period(1) (the "period") ended September 30, 2007, as follows (reported in 000's): CLASS A CLASS C NET SELLING DEFERRED COMMISSIONS SALES CHARGES ----------- ------------- $124 $25 (1) The fiscal period for the Fund is March 1, 2007 through September 30, 2007. The Fund pays PEPCO distribution and/or service fees at the following annual rates as a percentage of the average daily net assets of each respective class: CLASS A CLASS C ----------- ------------- 0.25% 1.00% There are no distribution and/or service fees for Class I. Under certain circumstances, shares of certain Phoenix Funds may be exchanged for shares of the same class of certain other Phoenix Funds on the basis of the relative net asset values per share at the time of the exchange. On exchanges with share classes that carry a contingent deferred sales charge, the CDSC schedule of the original shares purchased continues to apply. 22 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) PEPCO serves as the administrator to the Fund. For its services, which includes financial agent services, PEPCO receives an administrative fee at an annual rate of 0.09% of the first $5 billion, 0.08% on the next $10 billion, and 0.07% over $15 billion of the average net assets across all non-money market funds in the Phoenix Funds and The Phoenix Edge Series Fund. For the period ended September 30, 2007, the Fund incurred administration fees totaling $488 (reported in 000's). PEPCO serves as the Fund's transfer agent with Boston Financial Data Services, Inc. serving as sub-transfer agent. For the period ended September 30, 2007, transfer agent fees were $562 (reported in 000's) as reported in the Statements of Operations. At September 30, 2007, PNX and its affiliates and Phoenix affiliated Funds held shares which aggregated the following (reported in 000's): AGGREGATE NET ASSET SHARES VALUE --------- -------- Foreign Opportunities Fund, Class A 450 $12,849 Until March 1, 2007, the Trust provided a deferred compensation plan to its trustees who were not officers of PNX. Under the deferred compensation plan, trustees were able to elect to defer all or a portion of their compensation. Amounts deferred were retained by the Fund, and to the extent permitted by the 1940 Act, as amended, could have been invested in the shares of those funds selected by the trustees. Investments in such funds are included in "Other assets" on the Statements of Assets and Liabilities at September 30, 2007. During the fiscal year ended February 28, 2005, Janus Services (the former administrator) reimbursed the International Equity Fund, predecessor fund to the Foreign Opportunities Fund - Investor Shares, $1,210, as a result of dilutions caused by incorrectly processed shareholder activity. The effect of this activity would have reduced total return by less than 0.01% for the Fund. 4. PURCHASES AND SALES OF SECURITIES Purchases and sales of investment securities for the Fund (excluding U.S. Government securities and agency securities, forward currency contracts and short-term securities) during the period ended September 30, 2007, were as follows: LONG-TERM (REPORTED IN 000'S) ----------------------------- PURCHASES SALES ----------- ------------ $708,981 $440,442 There were no purchases or sales of long-term U.S. Government and agency securities. 23 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) 5. CAPITAL SHARES Transactions (reported in 000's) in shares of capital stock, during the period ended September 30, 2007, were as follows:
------------------- -------------------- -------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ -------- ------ -------- ------ -------- - ----------------------- ------------------- -------------------- -------------------- FOREIGN 3/1/07 - 3/1/06 - 3/1/05 - OPPORTUNITIES FUND(3) 9/30/07 2/28/07 2/28/06 - ----------------------- ------------------- -------------------- -------------------- CLASS I (F/K/A CLASS X)(1) Shares sold 2,150 $ 57,224 1,409 $ 34,448 -- $ -- Reinvestment of distributions 41 1,104 46 1,065 -- -- Plan of Reorganization (Note 11) 11,024 290,636 2,113 46,590 -- -- Redemptions (1,474) (39,283) (210) (4,937) -- -- ------ -------- ------ -------- ------ -------- Net increase / (decrease) 11,741 $309,681 3,358 $ 77,166 -- $ -- ====== ======== ====== ======== ====== ======== CLASS A Shares sold 11,830 $314,927 9,887 $239,921 2,318 $ 46,486 Reinvestment of distributions 66 1,796 270 6,284 361 7,218 Plan of Reorganization (Note 11) 145 3,821 575 12,673 -- -- Conversion from Investor Class Shares -- -- -- -- 4,306 80,966 Conversion from Class I Shares -- -- -- -- 92 1,722 Redemptions (3,111) (82,305) (2,306) (54,482) (1,212) (24,121) ------ -------- ------ -------- ------ -------- Net increase / (decrease) 8,930 $238,239 8,426 $204,396 5,865 $112,271 ====== ======== ====== ======== ====== ======== CLASS C Shares sold 2,145 $ 56,470 1,512 $ 36,932 285 $ 5,796 Reinvestment of distributions 5 140 15 344 5 92 Plan of Reorganization (Note 11) 8 198 66 1,457 -- -- Redemptions (201) (5,267) (58) (1,350) (11) (215) ------ -------- ------ -------- ------ -------- Net increase / (decrease) 1,957 $ 51,541 1,535 $ 37,383 279 $ 5,673 ====== ======== ====== ======== ====== ======== INVESTOR CLASS(2) Shares sold -- $ -- -- $ -- 800 $ 15,039 Reinvestment of distributions -- -- -- -- 45 827 Conversion to Class A Shares -- -- -- -- (4,314) (80,966) Redemptions -- -- -- -- (1,493) (27,521) ------ -------- ------ -------- ------ -------- Net increase / (decrease) -- $ -- -- $ -- (4,962) $(92,621) ====== ======== ====== ======== ====== ======== CLASS I(2) Shares sold 4 $ 83 Reinvestment of distributions 1 10 Conversion to Class A Shares -- -- -- -- (92) (1,722) Redemptions (1) (18) ------ -------- ------ -------- ------ -------- Net increase / (decrease) -- $ -- -- $ -- (88) $ (1,647) ====== ======== ====== ======== ====== ======== (1) Inception date for Class I - 5/15/06. (2) Effective June 20, 2005, Investor Class shares and Class I shares were converted to Class A shares. (3) During the period ended September 30, 2007, a non-affiliate reimbursed the Fund $1,089 as a result of dilutions caused by incorrectly processed shareholder activity. The effect of this activity would have reduced total return by less than .01% for the Fund.
24 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) 6. 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. The Fund may invest a high percentage of its assets in specific sectors of the market in its pursuit of a greater investment return. Fluctuations in these sectors of concentration may have a greater impact on the Fund, positive or negative, than if the Fund did not concentrate its investments in such sectors. 7. INDEMNIFICATIONS Under the Fund's organizational documents, its trustees and officers are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, the Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these arrangements. 8. REGULATORY EXAMS Federal and state regulatory authorities from time to time make inquiries and conduct examinations regarding compliance by The Phoenix Companies, Inc. and its subsidiaries (collectively "the Company") with securities and other laws and regulations affecting their registered products. During 2004 and 2005, the Boston District Office of the Securities and Exchange Commission ("SEC") conducted an examination of the Company's investment company and investment adviser affiliates. Following the examination, the staff of the SEC Boston District Office issued a deficiency letter noting perceived weaknesses in procedures for monitoring trading to prevent market timing activity prior to 2004. The staff requested the Company to conduct an analysis as to whether shareholders, policyholders and contract holders who invested in the funds that may have been affected by undetected market timing activity had suffered harm and to advise the staff whether the Company believes reimbursement is necessary or appropriate under the circumstances. Market timing is an investment technique involving frequent short-term trading of mutual fund shares that is designed to exploit market movements or inefficiencies in the way mutual fund companies price their shares. A third party was retained to assist the Company in preparing the analysis. In 2005, based on the third party analysis the Company notified the staff at the SEC Boston District Office that reimbursements were not appropriate under the circumstances. In February 2005, the NASD notified PNX that it was asserting violations of trade reporting rules by a subsidiary. PNX responded to the NASD allegations in May 2005. Thereafter, in January 2007, the NASD notified PNX that the matter was referred for potential violations and possible action. On May 3, 2007, the NASD accepted a letter of acceptance, waiver and consent submitted by the PXP subsidiary to resolve this matter. Without admitting or denying the NASD's findings, in accordance with the terms of the letter the PXP subsidiary agreed to a censure, to pay a fine of $8,000 and to revise its supervisory procedures. The Company does not believe that the outcome of this matter will be material to these financial statements. 25 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) 9. FEDERAL INCOME TAX INFORMATION (REPORTED IN 000'S) The Fund has capital loss carryovers which may be used to offset future capital gains, as follows: EXPIRATION YEAR 2008 2009 TOTAL - -------------------------------------------------------------------------------- $1,417 $5,127 $6,544 The Fund may not realize the benefit of these losses to the extent the Fund does not realize gains on investments prior to the expiration of the capital loss carryovers. For the period ended September 30, 2007, the Fund utilized losses of $644 deferred in prior years against current year capital gains. The Fund had $537 of capital loss carryover which expired in 2007. Under current tax law, foreign currency and capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. For the fiscal year ended September 30, 2007, the Fund deferred and recognized post-October losses as follows: CURRENCY LOSS CURRENCY LOSS DEFERRED RECOGNIZED ------------- ------------- $ -- $409 The components of distributable earnings on a tax basis (excluding unrealized appreciation (depreciation) which is disclosed in the Schedules of Investments) consist of undistributed ordinary income of $7,621 and undistributed long-term capital gains of $0. The differences between the book and tax basis components of distributable earnings relate principally to the timing of recognition of income and gains for federal income tax purposes. Short-term gain distributions reported in the Statements of Changes in Net Assets, if any, are reported as ordinary income for federal tax purposes. 10. RECLASSIFICATION OF CAPITAL ACCOUNTS For financial reporting purposes, book basis capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Permanent reclassifications can arise from differing treatment of certain income and gain transactions, nondeductible current year net operating losses, expiring capital loss carryovers and investments in passive foreign investment companies. The reclassifications have no impact on the net assets or net asset value of the Funds. As of September 30, 2007, the Fund recorded reclassifications to increase (decrease) the accounts as listed below (reported in 000's): CAPITAL PAID IN ON SHARES OF ACCUMULATED UNDISTRIBUTED BENEFICIAL NET REALIZED NET INVESTMENT INTEREST GAIN (LOSS) INCOME (LOSS) ------------ ------------ -------------- $(558) $(3,153) $3,711 26 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) 11. PLANS OF REORGANIZATION On April 13, 2007, the Foreign Opportunities Fund acquired all of the net assets of the Phoenix Insight International Fund ("International Fund") of the Phoenix Insight Funds Trust pursuant to an Agreement and Plan of Reorganization approved by the International Fund's Board of Trustees on November 15, 2006. The acquisition was accomplished by a tax-free exchange of 11,023,788 Class I shares, 145,171 Class A shares, and 7,555 Class C shares of the Foreign Opportunities Fund outstanding on April 13, 2007 (valued at $290,635,894, $3,821,481 and $197,797, respectively) for 15,422,914 Class I shares, 211,994 Class A shares, and 11,002 Class C shares of the International Fund outstanding on April 13, 2007. The International Fund had net assets on that date of $294,655,171 including $53,500,150 of net appreciation, which were combined with those of the Foreign Opportunities Fund. The aggregate net assets of Foreign Opportunities Fund immediately after the merger were $885,262,824. The shareholders of each Class of the International Fund received for each share owned approximately 0.71, 0.68 and 0.69 share, respectively, for Class I, Class A, and Class C shares of the same class of the Foreign Opportunities Fund. On May 22, 2006, the Foreign Opportunities Fund acquired all of the net assets of the Phoenix Overseas Fund ("Overseas Fund") of the Phoenix Asset Trust pursuant to an Agreement and Plan of Reorganization approved by the Overseas Fund's Board of Trustees on February 16, 2006. The acquisition was accomplished by a tax-free exchange of 2,113,337 Class I (f/k/a Class X) shares, 574,941 Class A shares, and 66,354 Class C shares of the Foreign Opportunities Fund outstanding on May 19, 2006 (valued at $46,590,175, $12,673,037 and $1,457,044, respectively) for 3,026,931 Class I (f/k/a Class X) shares, 788,867 Class A shares, 38,630 Class B shares and 95,679 Class C shares of the Overseas Fund outstanding on May 19, 2006. The Overseas Fund had net assets on that date of $60,720,256 including $17,640,290 of net appreciation, which were combined with those of the Foreign Opportunities Fund. The aggregate net assets of Foreign Opportunities Fund immediately after the merger were $208,971,708. The shareholders of each Class of the Overseas Fund received for each share owned approximately 0.70, 0.69 and 0.69 share, respectively, for Class I (f/k/a Class X), Class A, and Class C shares of the same class of the Foreign Opportunities Fund. At the time of the merger all Class B shares of the Overseas Fund were converted to Class A shares. As a result each Class B shareholder of Overseas Fund received 0.69 of Class A shares of the Foreign Opportunities Fund. At a meeting held on March 24, 2005, the Board of Trustees (the "Janus Board") of the Focused Value Fund and the International Equity Fund (each a "Janus Fund" and collectively, the "Janus Funds"), each a series of Janus Adviser Trust (the "Janus Trust") voted to approve a transaction (the "Transaction") whereby the Janus Trust and Janus Funds would be integrated into the Phoenix Investment Partners, Ltd., family of mutual funds (the "Phoenix Funds"). In connection with the Transaction, at a special meeting held on May 17, 2005, shareholders of the Janus Funds approved a new investment advisory agreement with PIC and the continuation of Vontobel as subadviser, pursuant to a new investment subadvisory agreement between PIC and Vontobel. Also, in connection with the Transaction, shareholders approved the reconstitution of the Janus Board with a new slate of trustees comprised of fourteen trustees of the Phoenix Funds. The Transaction was completed on June 20, 2005 and the names of Focused Value Fund and International Equity Fund changed to Phoenix Focused Value Fund and Phoenix Foreign Opportunities Fund, respectively. Additionally, the Janus Trust was renamed the Phoenix Adviser Trust. 27 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) Pursuant to the Transaction, on June 20, 2005, Janus Fund shareholders who held Class A and Class C shares remained in the same class of shares of either the Phoenix Focused Value Fund or the Phoenix Foreign Opportunities Fund, as applicable. Janus Fund shareholders who held Investor shares or Class I shares had those shares converted to Class A shares of either the Phoenix Focused Value Fund or the Phoenix Foreign Opportunities Fund, as applicable. Janus Fund shareholders who held Investor shares or Class I shares that were converted to Class A shares may continue, as long as such shares are held, to purchase Class A shares without any sales charges. - -------------------------------------------------------------------------------- TAX INFORMATION NOTICE (UNAUDITED) For the fiscal year ended September 30, 2007, the Fund hereby designates 100%, or the maximum amount allowable, of its ordinary income dividends to qualify for the lower tax rates applicable to individual shareholders. The actual percentages for the calendar year will be designated in the year-end tax statements. For the period ended September 30, 2007, the Phoenix Foreign Opportunities Fund recognized $14,669,139, of foreign source income on which the Fund paid foreign taxes of $640,815. This information is being furnished to you pursuant to notice requirements of Section 853(a) and 855(d) of the Internal Revenue Code, as amended, and the Treasury Regulations thereunder. - -------------------------------------------------------------------------------- 28 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM [GRAPHIC OMITTED] PricewaterhouseCoopers LLP To the Board of Trustees of Phoenix Opportunities Trust and Shareholders of Phoenix Foreign Opportunities Fund In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Phoenix Foreign Opportunities Fund (formerly a series of Phoenix Adviser Trust and now a series of Phoenix Opportunities Trust, hereafter referred to as the "Trust") at September 30, 2007, the results of its operations for the period March 1, 2007 to September 30, 2007 and for the year ended February 28, 2007, the changes in its net assets for the period March 1, 2007 to September 30, 2007 and for each of the two years in the period ended February 28, 2007 and the financial highlights for the period March 1, 2007 to September 30, 2007 and for each of the five years in the period ended February 28, 2006, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. /s/ PricewaterhouseCoopers LLP Boston, Massachusetts November 20, 2007 29 BOARD OF TRUSTEES' CONSIDERATION OF INVESTMENT ADVISORY AND SUBADVISORY AGREEMENTS PHOENIX OPPORTUNITIES TRUST SEPTEMBER 30, 2007 (UNAUDITED) BOARD OF TRUSTEES' CONSIDERATION OF INVESTMENT ADVISORY AND SUBADVISORY AGREEMENTS FOR PHOENIX CA TAX-EXEMPT BOND FUND, PHOENIX CORE BOND FUND, PHOENIX DIVERSIFIER PHOLIO, PHOENIX EMERGING MARKETS BOND FUND, PHOENIX FOREIGN OPPORTUNITIES FUND, PHOENIX GLOBAL UTILITIES FUND, PHOENIX HIGH YIELD FUND, PHOENIX INTERNATIONAL STRATEGIES FUND, PHOENIX MARKET NEUTRAL FUND, PHOENIX MONEY MARKET FUND, PHOENIX MULTI-SECTOR FIXED INCOME FUND, PHOENIX MULTI-SECTOR SHORT TERM BOND FUND, PHOENIX REAL ESTATE SECURITIES FUND, PHOENIX WEALTH ACCUMULATOR PHOLIO, PHOENIX WEALTH BUILDER PHOLIO, PHOENIX WEALTH GUARDIAN PHOLIO AND PHOENIX WORLDWIDE STRATEGIES FUND (EACH, A "FUND") Each of the above-referenced Funds is the result of a reorganization with an identical counterpart fund from a different Phoenix Fund trust. The reorganizations were conducted to relocate the funds from other Phoenix Fund trusts into the Phoenix Opportunities Trust. Although newly formed, the above-referenced Funds have taken on all attributes of each identical counterpart including all aspects of the previously approved advisory and subadvisory agreements for which Board of Trustee considerations were previously reported in the appropriate shareholder report. 30 RESULTS OF SHAREHOLDER MEETING PHOENIX OPPORTUNITIES TRUST OCTOBER 31, 2006 (UNAUDITED) At a special meeting of shareholders of Phoenix Opportunities Trust (the "Trust") held on October 31, 2006, shareholders voted on the following proposals: NUMBER OF ELIGIBLE UNITS VOTED: FOR AGAINST ----------- ------- To elect eleven Trustees to serve on the Board of Trustees until the next meeting of shareholders at which Trustees are elected. E. Virgil Conway.................. 121,064,647 625,812 Harry Dalzell-Payne............... 121,064,647 625,812 Daniel T. Geraci.................. 121,051,683 638,777 Francis E. Jeffries............... 121,064,647 625,812 Leroy Keith, Jr................... 121,064,647 625,812 Marilyn E. LaMarche............... 121,063,658 626,802 Philip R. McLoughlin.............. 121,064,647 625,812 Geraldine M. McNamara............. 121,063,658 626,802 James M. Oates.................... 121,064,647 625,812 Richard E. Segerson............... 121,064,647 625,812 Ferdinand L.J. Verdonck........... 121,064,647 625,812 FOR AGAINST ABSTAIN ----------- ------- ------- To ratify the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the Trusts....... 120,692,791 177,364 820,305 31 RESULTS OF SHAREHOLDER MEETING PHOENIX OPPORTUNITIES TRUST NOVEMBER 21, 2006 (UNAUDITED) At a special meeting of shareholders of Phoenix Foreign Opportunities Fund (the "Fund"), a series of Phoenix Opportunities Trust (the "Trust") held on November 21, 2006, shareholders voted on the following proposals: NUMBER OF ELIGIBLE UNITS VOTED:
BROKER FOR AGAINST ABSTAIN NON-VOTES ----------- ------- ------- --------- To amend the fundamental investment restrictions of the funds of the Phoenix Adviser Trust to conform to the standard fundamental investment restrictions of the Phoenix Funds. Investment of more than 25% of assets in companies engaged in one industry .................. 5,788,484 124,514 93,584 1,058,787 Limits on borrowing ........... 5,855,820 69,461 81,302 1,058,787 Issuance of senior securities.. 5,808,658 83,555 114,370 1,058,787 Underwriting activities ....... 5,826,009 74,933 105,641 1,058,787 Purchase and sale of real estate ........................ 5,435,828 475,226 95,528 1,058,787 Limits on lending ............. 5,836,697 82,653 87,232 1,058,787
32 FUND MANAGEMENT TABLES (UNAUDITED) Information pertaining to the Trustees and officers of the Trust as of September 30, 2007 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 - -------------------------------------------------------------------------------- NAME YEAR OF BIRTH YEAR ELECTED PRINCIPAL OCCUPATION(S) # OF FUNDS IN FUND COMPLEX DURING PAST 5 YEARS AND OVERSEEN BY TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE - -------------------------------------------------------------------------------- E. Virgil Conway Chairman, Rittenhouse Advisors, LLC (consulting firm) YOB: 1929 (2001-present). Trustee/Director, Phoenix Funds Family Elected: 2000 (1983-present), Director, Urstadt Biddle Property 55 Funds Corp. (1989-present), Consolidated Edison Company of New York, Inc. (1970-2002), Union Pacific Corp. (1978-2002), Accuhealth, Inc. (1994-2002). - -------------------------------------------------------------------------------- Harry Dalzell-Payne Retired. Trustee/Director, Phoenix Funds Family YOB: 1929 (1983-present). Elected: 1999 55 Funds - -------------------------------------------------------------------------------- Francis E. Jeffries Director, The Empire District Electric Company YOB: 1930 (1984-2004). Trustee/Director, Phoenix Funds Complex Elected: 2005 (1987-present). 58 Funds - -------------------------------------------------------------------------------- Leroy Keith, Jr. Managing Director, Almanac Capital Management YOB: 1939 (commodities business) (since 2007). Director/Trustee, Elected: 2005 Evergreen Funds (93 portfolios) (1989-present). 55 Funds Trustee, Phoenix Funds Family (1980-present). Director, Lincoln Educational Services Corp. (2002-2004). Partner, Stonington Partners, Inc. (private equity firm) (2001-2007). - -------------------------------------------------------------------------------- Geraldine M. McNamara Retired. Trustee/Director, Phoenix Funds Complex YOB: 1951 (2001-present). Managing Director, U.S. Trust Company Elected: 2001 of New York (private bank) (1982-2006). 57 Funds - -------------------------------------------------------------------------------- James M. Oates Trustee/Director, Phoenix Funds Family (1987-present). YOB: 1946 Managing Director, Wydown Group (consulting firm) Elected: 2005 (1994-present). Director, Investors Bank & Trust 55 Funds Corporation (1995-present), Stifel Financial (1996-present). Independent Chairman (2005-present) and Trustee (2004-present), John Hancock Trust (93 portfolios). Trustee, John Hancock Funds II (74 portfolios) (2005-present). Director/Trustee, Plymouth Rubber Co. (1995-2003). Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services) (1997-2006). Trustee, John Hancock Funds III (8 portfolios) (2005-2006). - -------------------------------------------------------------------------------- 33 FUND MANAGEMENT TABLES (UNAUDITED) (CONTINUED) INDEPENDENT TRUSTEES - -------------------------------------------------------------------------------- NAME YEAR OF BIRTH YEAR ELECTED PRINCIPAL OCCUPATION(S) # OF FUNDS IN FUND COMPLEX DURING PAST 5 YEARS AND OVERSEEN BY TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE - -------------------------------------------------------------------------------- Richard E. Segerson Managing Director, Northway Management Company YOB: 1946 (1998-present). Trustee/Director, Phoenix Funds Family Elected: 2005 (1983-present). 55 Funds - -------------------------------------------------------------------------------- Ferdinand L.J. Verdonck Chairman, Amsterdam Molecular Therapeutics N.V. YOB: 1942 (biotechnology) (since 2007). Director, The JP Morgan Elected: 2005 European Investment Trust (1998-present), Galapagos 55 Funds N.V. (biotechnology) (2005-present). Trustee, Phoenix Funds Family (2004-present). Director, EASDAQ (Chairman) (2001-present), Groupe SNEF (electrical and electronic installation) (1998-present). Managing Director, Almanij N.V. (financial holding company) (1992-2003). Director, KBC Bank and Insurance Holding Company (1992-2003), KBC Bank (1992-2003), KBC Insurance (1992-2003), Kredietbank S.A. Luxembourgeoise (1992-2003), Investco N.V. (private equity company) (1992-2003), Gevaert N.V. (industrial holding company) (1992-2003), Fidea N.V. (insurance company) (1992-2003), Almafin N.V. (real estate investment company) (1992-2003), Centea N.V. (savings bank) (1992-2003), Degussa Antwerpen N.V. (1998-2004), Santens N.V. (textiles) (1999-2004), Dictaphone Corp. (2002-2006), Banco Urquijo (Chairman) (1998-2006). - -------------------------------------------------------------------------------- 34 FUND MANAGEMENT TABLES (UNAUDITED) (CONTINUED) INTERESTED TRUSTEES Each of the individuals listed below is an "interested person" of the Fund, as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended, and the rules and regulations thereunder. - -------------------------------------------------------------------------------- NAME YEAR OF BIRTH YEAR ELECTED PRINCIPAL OCCUPATION(S) # OF FUNDS IN FUND COMPLEX DURING PAST 5 YEARS AND OVERSEEN BY TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE - -------------------------------------------------------------------------------- George R. Aylward(1) Senior Executive Vice President and President, Asset YOB: 1964 Management (since 2007), Senior Vice President and Elected: 2006 Chief Operating Officer, Asset Management (2004-2007), 57 Funds Vice President (2001-2004), The Phoenix Companies, Inc. Director and President (2006-present), Chief Operating Officer (2004-present), Executive Vice President (2004-2006), Vice President, Finance, (2001-2002), Phoenix Investment Partners, Ltd. Various senior officer and directorship positions with Phoenix affiliates. President (2006-present), Executive Vice President (2004-2006), the Phoenix Funds Family. Chairman, President and Chief Executive Officer, The Zweig Fund Inc. and The Zweig Total Return Fund Inc. (2006-present). - -------------------------------------------------------------------------------- Marilyn E. LaMarche(2) Limited Managing Director, Lazard Freres & Co. LLC YOB: 1934 (1997-present). Trustee/Director, Phoenix Funds Family Elected: 2005 (2002-present). Director, The Phoenix Companies, Inc. 55 Funds (2001-2005). - -------------------------------------------------------------------------------- Philip R. McLoughlin(3) Partner, Cross Pond Partners, LLC (2006-Present). YOB: 1946 Director, PXRE Corporation (Reinsurance) Elected: 1999 (1985-present), World Trust Fund (1991-present). 75 Funds Director/Trustee, Phoenix Funds Complex (1989-present). Management Consultant (2002-2004), Chairman Chairman (1997-2002), Chief Executive Officer (1995-2002) and Director (1995-2002), Phoenix Investment Partners, Ltd. Director and Executive Vice President, The Phoenix Companies, Inc. (2000-2002). - -------------------------------------------------------------------------------- (1) Mr. Aylward is an "interested person," as defined in the Investment Company Act of 1940, by reason of his relationship with Phoenix Investment Partners, Ltd. and its affiliates. (2) Ms. LaMarche is an "interested person," as defined in the Investment Company Act of 1940, by reason of her former position as a Director of The Phoenix Companies, Inc. (3) Mr. McLoughlin is an "interested person," as defined in the Investment Company Act of 1940, by reason of his former relationship with Phoenix Investment Partners, Ltd. and its affiliates. 35 FUND MANAGEMENT TABLES (UNAUDITED) (CONTINUED)
OFFICERS OF THE TRUST WHO ARE NOT TRUSTEES - ------------------------------------------------------------------------------------------------------------------------------------ POSITION(S) HELD WITH NAME, ADDRESS AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) YEAR OF BIRTH TIME SERVED DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ Nancy G. Curtiss Senior Vice President Assistant Treasurer (2001-present), Vice President, Fund YOB: 1952 since 2006. Accounting (1994-2000), Phoenix Equity Planning Corporation. Vice President, Phoenix Investment Partners, Ltd. (2003-present). Senior Vice President, the Phoenix Funds Family (since 2006). Vice President, The Phoenix Edge Series Fund (1994-present), Treasurer, The Zweig Fund Inc. and The Zweig Total Return Fund Inc. (2003-present). Chief Financial Officer (2005-2006) and Treasurer (1994-2006), or Assistant Treasurer (2005-2006), certain funds within the Phoenix Fund Complex. - ------------------------------------------------------------------------------------------------------------------------------------ Francis G. Waltman Senior Vice President Senior Vice President, Asset Management Product Development of The YOB: 1962 since 2004. Phoenix Companies, Inc. (2006-present). Senior Vice President, Asset Management Product Development (2005- present), Senior Vice President and Chief Administrative Officer (2003-2004) of Phoenix Investment Partners, Ltd. Director and President (2006-present) of Phoenix Equity Planning Corporation. Mr. Waltman is also Senior Vice President of Phoenix Investment Counsel, Inc., Director of Duff & Phelps Investment Management Company, Senior Vice President of the Phoenix Funds Family (2004-present). - ------------------------------------------------------------------------------------------------------------------------------------ Marc Baltuch Vice President and Chief Compliance Officer, Zweig-DiMenna Associates LLC c/o Zweig-DiMenna Associates, LLC Chief Compliance Officer (1989-present). Vice President and Chief Compliance Officer, 900 Third Avenue since 2004. certain Funds within the Phoenix Funds Complex (2004-present). New York, NY 10022 Vice President, The Zweig Total Return Fund, Inc. (2004-present). YOB: 1945 Vice President, The Zweig Fund, Inc. (2004-present). President and Director of Watermark Securities, Inc. (1991-present). Assistant Secretary of Gotham Advisors Inc. (1990-present). Secretary, Phoenix-Zweig Trust (1989-2003). Secretary, Phoenix-Euclid Market Neutral Fund (1999-2002). - ------------------------------------------------------------------------------------------------------------------------------------
36 FUND MANAGEMENT TABLES (UNAUDITED) (CONTINUED)
OFFICERS OF THE TRUST WHO ARE NOT TRUSTEES - ------------------------------------------------------------------------------------------------------------------------------------ POSITION(S) HELD WITH NAME, ADDRESS AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) YEAR OF BIRTH TIME SERVED DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ W. Patrick Bradley Chief Financial Officer Vice President, Fund Administration, Phoenix Investment Partners, YOB: 1972 and Treasurer since 2005. Ltd. (2004-present). Chief Financial Officer and Treasurer (2006-present) or Chief Financial Officer and Treasurer (2005-present), certain funds within the Phoenix Funds Family. Vice President, Chief Financial Officer, Treasurer and Principal Accounting Officer, The Phoenix Edge Series Fund (2006-present). Assistant Treasurer, certain funds within the Phoenix Fund Complex (2004-2006). Senior Manager (2002-2004), Manager (2000-2002), Audit, Deloitte & Touche, LLP. - ------------------------------------------------------------------------------------------------------------------------------------ Kevin J. Carr Vice President, Vice President and Counsel, Phoenix Life Insurance Company One American Row Chief Legal Officer, (2005-present). Vice President, Counsel, Chief Legal Officer and Hartford, CT 06102 Counsel and Secretary Secretary, the Phoenix Funds Family (2005- present). Compliance YOB: 1954 since 2005. Officer of Investments and Counsel, Travelers Life & Annuity Company (January 2005-May 2005). Assistant General Counsel, The Hartford Financial Services Group (1999-2005). - ------------------------------------------------------------------------------------------------------------------------------------
37 PHOENIX OPPORTUNITIES TRUST 101 Munson Street Greenfield, MA 01301-9668 TRUSTEES George R. Aylward E. Virgil Conway Harry Dalzell-Payne Francis E. Jeffries Leroy Keith, Jr. Marilyn E. LaMarche Philip R. McLoughlin, Chairman Geraldine M. McNamara James M. Oates Richard E. Segerson Ferdinand L.J. Verdonck OFFICERS George R. Aylward, President Nancy G. Curtiss, Senior Vice President Francis G. Waltman, Senior Vice President Marc Baltuch, Vice President and Chief Compliance Officer W. Patrick Bradley, Chief Financial Officer and Treasurer Kevin J. Carr, Vice President, Chief Legal Officer, Counsel and Secretary INVESTMENT ADVISER Phoenix Investment Counsel, Inc. 56 Prospect Street Hartford, CT 06115-0480 PRINCIPAL UNDERWRITER Phoenix Equity Planning Corporation One American Row Hartford, CT 06103-2899 TRANSFER AGENT Phoenix Equity Planning Corporation One American Row Hartford, CT 06103-2899 CUSTODIAN State Street Bank and Trust Company P.O. Box 5501 Boston, MA 02206-5501 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP 125 High Street Boston, MA 02110-1707 HOW TO CONTACT US Mutual Fund Services 1-800-243-1574 Advisor Consulting Group 1-800-243-4361 Telephone Orders 1-800-367-5877 Text Telephone 1-800-243-1926 Web site PHOENIXFUNDS.COM - -------------------------------------------------------------------------------- IMPORTANT NOTICE TO SHAREHOLDERS The Securities and Exchange Commission has modified mailing regulations for semiannual and annual shareholder fund reports to allow mutual fund companies to send a single copy of these reports to shareholders who share the same mailing address. If you would like additional copies, please call Mutual Fund Services at 1-800-243-1574. - -------------------------------------------------------------------------------- THIS PAGE INTENTIONALLY BLANK. THIS PAGE INTENTIONALLY BLANK. --------------- PRESORTED STANDARD U.S. POSTAGE PAID Lancaster, PA Permit No. 1793 --------------- [GRAPHIC OMITTED] PHOENIX Phoenix Equity Planning Corporation P.O. Box 150480 Hartford, CT 06115-0480 For more information about Phoenix mutual funds, please call your financial representative, contact us at 1-800-243-1574 or visit phoenixfunds.com PXP5034 10/07 BPD33236 - -------------------------------------------------------------------------------- [LOGO OMITTED] PHOENIX - -------------------------------------------------------------------------------- ANNUAL REPORT Phoenix Multi-Sector Short Term Bond Fund WOULDN'T YOU RATHER HAVE THIS DOCUMENT TRUST NAME: E-MAILED TO YOU? PHOENIX ELIGIBLE SHAREHOLDERS CAN OPPORTUNITIES | | SIGN UP FOR E-DELIVERY AT TRUST | September 30, 2007 | PHOENIXFUNDS.COM ................................................................................. NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE TABLE OF CONTENTS Message to Shareholders................................................... 1 Glossary.................................................................. 2 Disclosure of Fund Expenses............................................... 4 Phoenix Multi-Sector Short Term Bond Fund................................. 6 Notes to Financial Statements............................................. 32 Report of Independent Registered Public Accounting Firm................... 42 Board of Trustees' Consideration of Investment Advisory and Subadvisory Agreements............................................. 43 Results of Shareholder Meetings........................................... 44 Fund Management Tables.................................................... 46 - -------------------------------------------------------------------------------- PROXY VOTING PROCEDURES (FORM N-PX) The adviser and subadviser vote proxies relating to portfolio securities in accordance with procedures that have been approved by the Trust's Board of Trustees. You may obtain a description of these procedures, along with information regarding how the Funds voted proxies during the most recent 12-month period ended June 30, 2007, free of charge, by calling toll-free 1-800-243-1574. This information is also available through the Securities and Exchange Commission's website at http://www.sec.gov. FORM N-Q INFORMATION The Trust files a complete schedule of portfolio holdings with the Securities and Exchange Commission (the "SEC") for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC's website at http://www.sec.gov. Form N-Q may be reviewed and copied at the SEC's Public Reference Room. Information on the operation of the SEC's Public Reference Room can be obtained by calling toll-free 1-800-SEC-0330. - -------------------------------------------------------------------------------- This report is not authorized for distribution to prospective investors in the Phoenix Opportunities Trust unless preceded or accompanied by an effective prospectus which includes information concerning the sales charge, each Fund's record and other pertinent information. MESSAGE TO SHAREHOLDERS Dear PhoenixFunds Shareholder: [PHOTO OMITTED] We are pleased to provide this report for the fiscal period ended September 30, 2007. It includes valuable information about your Phoenix mutual fund(s)--such as performance- and fee-related data and information about the fund's portfolio holdings and transactions for the reporting period. The report also provides commentary from your fund's management team with respect to the fund's performance, its investment strategies, and how the fund performed against the broader market. At Phoenix, we are committed to helping investors succeed over the long term and we strive to provide investors with choice. The Phoenix family of funds offers a wide array of investment options to help make diversification easy. Our multi-manager, multi-style approach gives you access to a complete suite of investment products, including numerous equity, fixed income and money market funds. We are proud to offer this diversified portfolio of funds managed by more than a dozen accomplished independent investment managers--many of whom were previously only available to large institutional investors. Their investment expertise allows us to offer a variety of styles, including growth, value and core products, along with asset allocation funds and alternative investments. Phoenix is also committed to providing you best-in-class service. Whether you need to check your account value or transfer funds, our customer service team stands ready to provide superior, dependable assistance to help you make informed decisions. Because we offer such an extensive selection of investment options, it's important that you consult an experienced financial professional for help reviewing or rebalancing your portfolio on a regular basis. A regular "checkup" can be an excellent way to help ensure that your investments are aligned with your financial goals. As president of Phoenix Investment Partners, Ltd., I would like to thank you for entrusting your assets with us. It's our privilege to serve you. Sincerely yours, /s/ George R. Aylward George R. Aylward President, PhoenixFunds October 2007 1 GLOSSARY FGIC Financial Guaranty Insurance Company FHLB Federal Home Loan Bank FHLMC Federal Home Loan Mortgage Corporation FNMA OR "FANNIE MAE" Federal National Mortgage Association FSA Financial Security Assurance, Inc. GNMA OR "GINNIE MAE" Government National Mortgage Association LEHMAN BROTHERS AGGREGATE BOND INDEX The Lehman Brothers Aggregate Bond Index measures the U.S. investment grade fixed rate bond market. The index is calculated on a total return basis. MBIA Municipal Bond Insurance Association MERRILL LYNCH 1-2.99 YEAR MEDIUM QUALITY CORPORATE BONDS INDEX The Merrill Lynch 1-2.99 Year Medium Quality Corporate Bonds Index measures performance of U.S. investment grade corporate bond issues rated "BBB" and "A" by Standard & Poor's/Moody's with maturities between one and three years. The index is calculated on a total return basis. PAYMENT-IN-KIND SECURITY (PIK) A bond which pays interest in the form of additional bonds, or preferred stock which pays dividends in the form of additional preferred stock. REIT (REAL ESTATE INVESTMENT TRUST) A publicly traded company that owns, develops and operates income-producing real estate such as apartments, office buildings, hotels, shopping centers and other commercial properties. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS Securities purchased on a when-issued or forward commitment basis are also known as delayed delivery transactions. Delayed delivery transactions involve a commitment by a Fund to purchase or sell a security at a future date, ordinarily up to 90 days later. When-issued or forward commitments enable a Fund to lock in what is believed to be an attractive price or yield on a particular security for a period of time, regardless of future changes in interest rates. THE INDEXES ARE UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT; THEREFORE, THEIR PERFORMANCE DOES NOT REFLECT THE EXPENSES ASSOCIATED WITH ACTIVE MANAGEMENT OF AN ACTUAL PORTFOLIO. 2 THIS PAGE INTENTIONALLY BLANK. PHOENIX MULTI-SECTOR SHORT TERM BOND FUND DISCLOSURE OF FUND EXPENSES (UNAUDITED) FOR THE SIX-MONTH PERIOD OF APRIL 1, 2007 - SEPTEMBER 30, 2007 We believe it is important for you to understand the impact of costs on your investment. All mutual funds have operating expenses. As a shareholder of the Phoenix Multi-Sector Short Term Bond Fund (the "Fund"), which is a fund in the Phoenix Opportunities Trust Fund you may incur two types of costs: (1) transaction costs, including sales charges on purchases of Class A shares and contingent deferred sales charges on Class B, Class C and Class T shares; and (2) ongoing costs, including investment advisory fees; distribution and service fees; and other expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period. The following Expense Tables illustrate your fund's costs in two ways. ACTUAL EXPENSES This section of the accompanying tables provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading "Expenses Paid During Period" to estimate the expenses you paid on your account during the period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES This section of the accompanying tables provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not your Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the accompanying tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges or contingent deferred sales charges. Therefore, the second section of the accompanying tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions. 4 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND DISCLOSURE OF FUND EXPENSES (UNAUDITED) (CONTINUED) FOR THE SIX-MONTH PERIOD OF APRIL 1, 2007 - SEPTEMBER 30, 2007 Beginning Ending Expenses Account Account Annualized Paid Value Value Expense During April 1, 2007 September 30, 2007 Ratio Period* - -------------------------------------------------------------------------------- MULTI-SECTOR SHORT TERM BOND FUND - -------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,012.70 1.10% $5.55 Class B 1,000.00 1,010.20 1.60 8.06 Class C 1,000.00 1,011.40 1.35 6.81 Class T 1,000.00 1,008.80 1.86 9.37 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,019.48 1.10 5.58 Class B 1,000.00 1,016.95 1.60 8.12 Class C 1,000.00 1,018.22 1.35 6.85 Class T 1,000.00 1,015.63 1.86 9.44 * Expenses are equal to the Fund's annualized expense ratio which includes waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 365 days to reflect the one-half year period. You can find more information about the Fund's expenses in the Financial Statements section that follows. For additional information on operating expenses and other shareholder costs, refer to the prospectus. 5 TICKER SYMBOLS: PHOENIX MULTI-SECTOR SHORT TERM BOND FUND A Share: NARAX B Share: PBARX C Share: PSTCX T Share: PMSTX [ ] PHOENIX MULTI-SECTOR SHORT TERM BOND FUND ("Multi-Sector Short Term Bond Fund") To provide high current income while attempting to limit changes in the fund's net asset value per share caused by interest rate changes. THERE IS NO GUARANTEE THAT THE FUND WILL ACHIEVE ITS OBJECTIVE. [ ] For the Fund's fiscal period of November 1, 2006 to September 30, 2007, Class A shares returned 3.84%*; Class B shares returned 3.38%*; Class C shares returned 3.57%*; and Class T shares returned 3.11%*. For the same period, the Lehman Brothers(R) Aggregate Bond Index, a broad-based fixed income index, returned 4.44%*; and the Merrill Lynch 1-2.99 Year Medium Quality Corporate Bonds Index, the Fund's style-specific index appropriate for comparison, returned 4.59%*. * Returns less than 1 year are not annualized. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. HOW DID THE BOND MARKETS PERFORM DURING THE FUND'S FISCAL YEAR? [ ] The broad U.S. fixed income market, as represented by the Lehman Brothers Aggregate Bond Index, returned 5.14% for the fiscal year ended September 30, 2007. In the first 7 meetings of the fiscal year the Federal Reserve kept the federal funds rate unchanged at 5.25%. On September 18, 2007, the Fed cut the federal funds rate by 0.50% to 4.75%, citing concerns that tightening credit conditions could potentially increase the strain on the housing market, eventually leading to lower than expected economic growth. Since the beginning of the fiscal year the yield curve has steepened, with rates declining at the intermediate and front end of the curve. [ ] The first nine months of the fiscal period can best be characterized as a low volatility, benign credit environment. It was in this atmosphere that non-treasury fixed income sectors outperformed. In stark contrast, the last two months of the fiscal period were extraordinarily volatile. This was primarily due to fear surrounding the sub-prime mortgage market and its resulting contagion. These fears caused a very significant flight to quality which resulted in dramatic spread widening in all sectors of the bond market. So significant was this flight to quality, that it caused treasuries to outperform almost all spread sectors for the full reporting period. The only exceptions were emerging markets and high yield where the excess yield was able to offset the price decline. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR? [ ] The decision to maintain an underweight to U.S. treasuries in favor of spread sectors was the largest detractor to performance for the fiscal year. Treasuries outperformed as concerns over sub-prime sparked a flight to quality, causing spreads in many sectors to widen. This environment typically does not favor our style of investing; however, our ability to be tactical in our use of high quality substitutes for investment grade corporates contributed positively to performance for the fiscal year. Among the fund's investment in spread sectors, the overweight to asset-backed securities detracted the most from performance. The asset-backed sector was pressured by the home equity sub-component, which suffered from weakness in the underlying collateral. 6 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND (CONTINUED) [ ] The largest positive contributor to performance was the fund's exposure to non-U.S. dollar investments, which benefited from market expectations that the Federal Reserve would cut U.S. interest rates in 2007 and stronger growth outside of the United States. The fund also benefited from its position in bank loans, which was used as a more defensive, less volatile substitute for corporate high yield bonds. [ ] AS INTEREST RATES RISE, BOND PRICES FALL. AS SUCH, THIS FUND'S SHARE VALUE MAY DECLINE SUBSTANTIALLY, AND IT IS POSSIBLE TO LOSE A SIGNIFICANT PORTION OF YOUR PRINCIPAL WHEN INTEREST RATES RISE. FOREIGN INVESTING INVOLVES SPECIAL RISKS SUCH AS CURRENCY FLUCTUATION AND LESS PUBLIC DISCLOSURE, AS WELL AS ECONOMIC AND POLITICAL RISKS. SECTOR WEIGHTINGS as of 9/30/07* - --------------------------------------------------- Non-Agency Mortgage-Backed Securities 21% Foreign Government Securities 21% Domestic Corporate Bonds 18% Asset-Backed Securities 9% Foreign Corporate Bonds 8% Agency Mortgage-Backed Securities 8% Domestic Loan Agreements 8% Other (includes short-term investments) 7% - --------------------------------------------------- * % of total investments as of September 30, 2007. 7
AVERAGE ANNUAL TOTAL RETURNS(1) for periods ended 9/30/07 - ------------------------------------------------------------------------------------------------- Inception 1 5 10 to Inception Year Years Years 9/30/07 Date CLASS A SHARES AT NAV(2) 4.71% 5.25% 5.21% -- -- CLASS A SHARES AT POP(3),(4) 2.35 4.77 4.97 -- -- CLASS B SHARES AT NAV(2) 4.21 4.74 4.66 -- -- CLASS B SHARES WITH CDSC(4) 2.71 4.74 4.66 -- -- CLASS C SHARES AT NAV(2) 4.19 5.04 -- 4.99% 10/1/97 CLASS T SHARES AT NAV(2) 3.68 -- -- 3.33 6/2/03 CLASS T SHARES WITH CDSC(4) 3.68 -- -- 3.33 6/2/03 LEHMAN BROTHERS AGGREGATE BOND INDEX 5.14 4.13 5.97 NOTE 5 NOTE 5 MERRILL LYNCH 1-2.99 YEAR MEDIUM QUALITY CORPORATE BONDS INDEX 5.09 4.11 5.37 NOTE 6 NOTE 6 FUND EXPENSE RATIOS(7): CLASS A SHARES 1.06%; CLASS B SHARES 1.56%; CLASS C SHARES 1.31%; CLASS T SHARES 1.81%. - -------------------------------------------------------------------------------------------------
ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 2.25% SALES CHARGE. (4) CDSC (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO REDEMPTIONS OF CERTAIN CLASSES OF SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE. CDSC CHARGES FOR CLASS B SHARES DECLINE FROM 2% TO 0% OVER A THREE YEAR PERIOD. CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL REDEMPTIONS OF CLASS T SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. (5) INDEX PERFORMANCE IS 5.93% FOR CLASS C (SINCE 10/1/97) AND 3.49% FOR CLASS T (SINCE 6/2/03). (6) INDEX PERFORMANCE IS 3.27% FOR CLASS T (SINCE 6/2/03). (7) PER PROSPECTUS EFFECTIVE 6/27/07. GROWTH OF $10,000 for periods ended 9/30/07 - -------------------------------------------------------------------------------- [GRAPH OMITTED] Plot points for EDGAR representation are as follows:
Shares Class A(1)(3)(4) Shares Class B(1)(4) Merrill Lynch 1-2.99 Year Medium Quality Corporate Lehman Brothers Bonds Index Aggregate Bond Index 9/97 $ 9,775 $10,000 $10,000 $10,000 9/98 9,523 9,691 10,769 11,151 9/99 10,249 10,357 11,209 11,110 9/00 10,900 10,964 11,923 11,887 9/01 11,777 11,765 13,197 13,426 9/02 12,583 12,508 13,794 14,580 9/03 13,843 13,697 14,844 15,370 9/04 14,510 14,315 15,178 15,935 9/05 14,939 14,666 15,412 16,380 9/06 15,531 15,141 16,057 16,982 9/07 16,262 15,778 16,875 17,854
For information regarding the indexes, see the glossary section on page 2. 8 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 PAR VALUE VALUE (000) (000) --------- ---------- U.S. GOVERNMENT SECURITIES--2.0% U.S. TREASURY NOTES--2.0% U.S. Treasury Note 4.750% due 1/31/12 $ 1,200 $ 1,227 4.625% due 2/29/12 1,325 1,348 4.500% due 3/31/12 9,000 9,109 4.625% due 7/31/12 16,000 16,279 U.S. Treasury Note 4.125% due 8/31/12 7,500 7,470 - -------------------------------------------------------------------------------- TOTAL U.S. GOVERNMENT SECURITIES (IDENTIFIED COST $35,037) 35,433 - -------------------------------------------------------------------------------- AGENCY MORTGAGE-BACKED SECURITIES--7.6% FHLMC 4.650% due 10/10/13 4,785 4,692 6.000% due 8/1/34 2,622 2,631 FNMA 5.500% due 1/1/17 942 944 6.000% due 5/1/17 279 283 5.500% due 8/1/17 150 150 4.500% due 4/1/18 1,932 1,865 5.000% due 4/1/18 1,812 1,781 5.000% due 10/1/19 3,245 3,187 5.500% due 2/1/20 1,090 1,088 5.500% due 3/1/20 5,433 5,423 5.500% due 4/1/20 1,934 1,931 5.000% due 6/1/20 5,283 5,180 5.000% due 8/1/20 6,538 6,411 6.000% due 12/1/32 351 353 5.500% due 2/1/33 854 839 5.500% due 5/1/34 2,924 2,869 6.000% due 8/1/34 4,258 4,279 5.500% due 10/1/34 2,703 2,653 6.000% due 10/1/34 4,049 4,065 5.500% due 11/1/34 5,945 5,836 6.000% due 11/1/34 3,110 3,122 5.500% due 12/1/34 1,788 1,752 5.500% due 1/1/35 6,812 6,686 5.500% due 2/1/35 3,356 3,294 5.500% due 3/1/35 3,395 3,329 5.500% due 4/1/35 3,857 3,785 6.500% due 8/1/36 11,620 11,833 6.000% due 10/1/36 6,647 6,658 6.000% due 1/1/37 7,298 7,309 FNMA 04-W6, 1A4 5.500% due 7/25/34 10,639 10,618 PAR VALUE VALUE (000) (000) --------- ---------- FNMA 05-57, CK 5.000% due 7/25/35 $ 4,235 $ 4,219 FNMA 05-65, DK 5.000% due 8/25/35 3,101 3,090 FNMA 05-65, PJ 5.000% due 8/25/35 5,284 5,268 FNMA 05-74, AG 5.000% due 9/25/35 2,832 2,820 FNMA 05-80, AD 5.500% due 9/25/35 4,645 4,619 GNMA 6.500% due 7/15/31 59 61 6.500% due 8/15/31 150 154 6.500% due 11/15/31 113 116 6.500% due 2/15/32 72 74 6.500% due 4/15/32 369 378 - -------------------------------------------------------------------------------- TOTAL AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $136,640) 135,645 - -------------------------------------------------------------------------------- AGENCY NON-MORTGAGE-BACKED SECURITIES--3.2% FHLB 6.000% due 6/29/22 8,995 9,109 FHLMC 5.375% due 1/9/14 12,495 12,549 5.200% due 3/5/19 20,010 19,686 5.300% due 5/12/20 16,000 15,650 - -------------------------------------------------------------------------------- TOTAL AGENCY NON-MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $56,564) 56,994 - -------------------------------------------------------------------------------- MUNICIPAL BONDS--1.6% CALIFORNIA--0.1% Fresno County Pension Obligation Taxable (FGIC Insured) 6.060% due 8/15/09 1,915 1,953 ---------- CONNECTICUT--0.2% Mashantucket Western Pequot Tribe Taxable Series A 144A (MBIA Insured) 6.910% due 9/1/12 (b) 3,000 3,110 ---------- See Notes to Financial Statements 9 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) --------- ---------- MASSACHUSETTS--0.4% Commonwealth of Massachusetts General Obligation Series C (FSA Insured) 5.500% due 12/1/17 $ 6,540 $ 7,405 ---------- NEW YORK--0.4% New York State Dormitory Authority Taxable Series B 3.350% due 12/15/09 2,500 2,421 Sales Tax (State) Asset Receivable Corp. Taxable Series B (FGIC Insured) 3.830% due 10/15/09 5,000 4,908 ---------- 7,329 ---------- PENNSYLVANIA--0.4% Philadelphia School District Taxable Series C (FSA Insured) 4.110% due 7/1/08 2,470 2,456 4.200% due 7/1/09 2,570 2,538 4.290% due 7/1/10 2,255 2,215 4.430% due 7/1/11 1,015 991 ---------- 8,200 ---------- SOUTH DAKOTA--0.0% South Dakota State Educational Enhancement Funding Corp. Taxable Series A 6.720% due 6/1/25 146 144 ---------- WASHINGTON--0.1% Washington State Housing Trust Fund Taxable Series T 5.000% due 7/1/08 1,000 1,001 ---------- - -------------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS (IDENTIFIED COST $29,456) 29,142 - -------------------------------------------------------------------------------- ASSET-BACKED SECURITIES--8.8% AmeriCredit Automobile Receivables Trust 06-1, E 144A 6.620% due 5/6/13(b) 3,439 3,428 Amerifirst Home Improvement Finance Trust 06-1 9.753% due 7/17/17(c) 4,536 4,536 Bayview Financial Acquisition Trust 06-B, 1A2 5.800% due 4/28/36(c) 4,000 3,972 PAR VALUE VALUE (000) (000) --------- ---------- Bear Stearns Structured Products, Inc. 05-20N, B 144A 9.631% due 10/25/45(b) (c) $ 5,000 $ 4,119 Bombardier Capital Mortgage Securitization Corp. 99-A, A3 5.980% due 1/15/18(c) 3,250 3,078 Capital Auto Receivables Asset Trust 06-1 D 144A 7.160% due 1/15/13(b) 2,000 2,043 Carmax Auto Owner Trust 05-1 C 4.820% due 10/15/11 4,135 4,086 Chase Funding Mortgage Loan Asset-Backed Certificates 04-1, 1A4 4.111% due 8/25/30 4,642 4,545 Citicorp Residential Mortgage Securities, Inc. 07-2, A4 6.538% due 6/25/37(c) 5,000 5,001 Conseco Finance Securitizations Corp. 01-3, A4 6.910% due 5/1/33(c) 7,824 8,199 Conseco Finance Securitizations Corp. 02-2, A2 6.030% due 3/1/33(c) 2,422 2,448 Credit Based Asset Servicing and Securitization LLC 07-CB1, AF2 5.721% due 1/25/37(c) 5,000 4,968 Dunkin Securitization 06-1, M1 144A 8.285% due 6/20/31(b) 6,345 6,522 Great America Leasing Receivables 05-1, A4 144A 4.970% due 8/20/10(b) 6,700 6,665 Green Tree Financial Corp. 99-2, M2 7.210% due 12/1/30(c) 3,657 677 GSAMP Trust 05-S1, B3 6.750% due 12/25/34(c) (q) 986 49 GSAMP Trust 06-S4, M6 6.331% due 5/25/36(c) 10,026 1,294 Home Equity Asset Trust 06-7N, A 144A 6.000% due 2/25/37(b) (q) 2,119 636 Hyundai Auto Receivables Trust 06-A, D 5.520% due 11/15/12 3,900 3,886 IndyMac Manufactured Housing Contract 98-1, A3 6.370% due 9/25/28 2,710 2,709 See Notes to Financial Statements 10 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) --------- ---------- Lehman XS Net Interest Margin 06-GPM7, A1 144A 6.250% due 12/28/46(b) $ 2,403 $ 2,307 Long Beach Auto Receivables Trust 04-A, A2 2.841% due 7/15/10(c) 1,351 1,330 Long Grove Collateral Loan Obligation Ltd. 04-1A D 144A 12.255% due 5/25/16(b) (c) 500 481 Long Grove Collateral Loan Obligation Ltd. 04-1A, C 144A 7.905% due 5/25/16(b) (c) 1,600 1,466 MASTR Alternative Net Interest Margin 06-6, N1 144A 6.129% due 9/26/46(b) (c) (r) 1,465 967 Merrill Auto Trust Securitization 07-1, B 5.790% due 12/15/13 7,000 6,933 Nomura Asset Acceptance Corp. 07-1, 1A2 5.669% due 3/25/47(c) 9,100 9,057 Renaissance Home Equity Loan Trust 05-3, AF4 5.140% due 11/25/35(c) 5,380 5,278 Renaissance Home Equity Loan Trust 06-1, M1 6.063% due 5/25/36(c) 4,000 3,380 Renaissance Home Equity Loan Trust 06-2, AF4 6.115% due 8/25/36(c) 5,640 5,612 Renaissance Net Interest Margin Trust 07-2, N 144A 8.353% due 6/25/37(b) 3,288 3,272 Residential Funding Mortgage Securities 06-HI2, A3 5.790% due 2/25/36 1,510 1,502 Residential Funding Mortgage Securities II, Inc. 04-HI3, A4 4.630% due 1/25/20 5,353 5,286 Residential Funding Mortgage Securities II, Inc. 05-HI2, A3 4.460% due 5/25/35 3,809 3,772 PAR VALUE VALUE (000) (000) --------- ---------- Residential Funding Mortgage Securities II, Inc. 07-HI1, A2 5.640% due 3/25/37 $ 10,000 $ 9,835 Residential Funding Mortgage Securities II, Inc. 07-HSA3, AI2 5.890% due 5/25/37(c) 7,340 7,258 Soundview Home Equity Loan Trust 05-CTX1, A3 5.322% due 11/25/35(c) 3,900 3,851 Structured Asset Securities Corp. 05-7XS, 1A2B 5.270% due 4/25/35(c) 7,161 7,165 Taganka Car Loan Finance plc 06-1A, A 144A 6.800% due 11/14/13(b) (c) 680 685 Vanderbuilt Acquisition Loan Trust 02-1, A3 5.700% due 9/7/23(c) 214 215 Wachovia Auto Loan Owner Trust 06-2A E 144A 7.050% due 5/20/14(b) 5,000 4,833 - -------------------------------------------------------------------------------- TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $170,873) 157,346 - -------------------------------------------------------------------------------- DOMESTIC CORPORATE BONDS--18.2% AEROSPACE & DEFENSE--0.3% L-3 Communications Corp. 7.625% due 6/15/12 4,445 4,567 L-3 Communications Corp. Series B 6.375% due 10/15/15 1,500 1,481 ---------- 6,048 ---------- AGRICULTURAL PRODUCTS--0.3% Cargill, Inc. 144A 5.600% due 9/15/12(b) 4,845 4,882 ---------- AIRLINES--3.2% American Airlines, Inc. 01-1 6.977% due 11/23/22 17,415 16,281 Continental Airlines, Inc. 98-1A 6.648% due 3/15/19 2,816 2,842 Delta Air Lines, Inc. 00-1 7.379% due 5/18/10 15,709 15,872 See Notes to Financial Statements 11 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) --------- ---------- AIRLINES--CONTINUED JetBlue Airways Corp. 04-1 9.944% due 3/15/08(c) $ 3,729 $ 3,748 JetBlue Airways Corp. 04-2 8.658% due 5/15/10(c) 2,258 2,258 PBG Aircraft Trust 144A 6.765% due 4/1/11(b) 5,140 4,883 United Airlines, Inc. 00-2 7.032% due 10/1/10 4,793 4,814 United Airlines, Inc. 01-1 6.071% due 3/1/13 6,119 6,150 ---------- 56,848 ---------- APPLICATION SOFTWARE--0.1% Intuit, Inc. 5.750% due 3/15/17 1,393 1,329 ---------- ASSET MANAGEMENT & CUSTODY BANKS--0.3% Janus Capital Group, Inc. 6.250% due 6/15/12 2,663 2,700 Nuveen Investments, Inc. 5.000% due 9/15/10 2,370 2,239 ---------- 4,939 ---------- AUTOMOBILE MANUFACTURERS--0.2% Daimler Finance NA LLC 6.500% due 11/15/13 3,390 3,515 ---------- AUTOMOTIVE RETAIL--0.1% Hertz Corp. 8.875% due 1/1/14 2,595 2,686 ---------- BROADCASTING & CABLE TV--0.6% Comcast Cable Holdings LLC 7.875% due 8/1/13 3,800 4,159 COX Communications, Inc. 3.875% due 10/1/08 1,000 984 4.625% due 6/1/13 5,620 5,301 ---------- 10,444 ---------- BUILDING PRODUCTS--0.1% Esco Corp. 144A 8.625% due 12/15/13(b) 1,725 1,708 ---------- CASINOS & GAMING--0.3% Harrah's Operating Co., Inc. 5.500% due 7/1/10 1,500 1,441 PAR VALUE VALUE (000) (000) --------- ---------- CASINOS & GAMING--CONTINUED MGM MIRAGE 8.500% due 9/15/10 $ 2,835 $ 2,977 Seminole Hard Rock Entertainment, Inc./Seminole Hard Rock International LLC 144A 8.194% due 3/15/14(b) (c) 767 752 ---------- 5,170 ---------- CONSUMER FINANCE--2.9% Ford Motor Credit Co. LLC 8.359% due 11/2/07(c) 1,560 1,561 6.625% due 6/16/08 1,100 1,092 5.625% due 10/1/08 12,490 12,206 9.875% due 8/10/11 3,480 3,528 8.110% due 1/13/12(c) 2,000 1,892 9.810% due 4/15/12(c) 3,389 3,474 GMAC LLC 6.360% due 9/23/08(c) 2,000 1,971 6.808% due 5/15/09(c) 4,815 4,639 6.875% due 9/15/11 4,205 4,005 6.750% due 12/1/14 900 817 HSBC Finance Corp. 4.125% due 11/16/09 2,000 1,949 MBNA Corp. 4.625% due 9/15/08 2,300 2,289 Residential Capital LLC 7.125% due 11/21/08 1,920 1,718 7.000% due 2/22/11 4,555 3,712 SLM Corp. 3.967% due 2/1/10(c) 8,000 6,998 ---------- 51,851 ---------- DATA PROCESSING & OUTSOURCED SERVICES--0.2% Convergys Corp. 4.875% due 12/15/09 3,000 2,987 ---------- DIVERSIFIED BANKS--0.2% KeyBank NA 5.700% due 8/15/12 1,800 1,807 Wells Fargo & Co. 3.125% due 4/1/09 1,500 1,460 ---------- 3,267 ---------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--0.1% International Lease Finance Corp. 4.750% due 1/13/12 1,120 1,086 ---------- See Notes to Financial Statements 12 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) --------- ---------- DIVERSIFIED METALS & MINING--0.1% Freeport-McMoRan Copper & Gold, Inc. (Indonesia) 6.875% due 2/1/14(d) $ 2,170 $ 2,208 ---------- ELECTRIC UTILITIES--0.5% Consumers Energy Co. Series H 4.800% due 2/17/09 2,000 1,991 Entergy Gulf States, Inc. 3.600% due 6/1/08 3,500 3,445 PPL Capital Funding Trust I Series A 4.330% due 3/1/09 4,250 4,202 ---------- 9,638 ---------- ELECTRICAL COMPONENTS & EQUIPMENT--0.2% General Cable Corp. 7.606% due 4/1/15(c) 3,375 3,291 ---------- ENVIRONMENTAL & FACILITIES SERVICES--0.1% Allied Waste North America, Inc. Series B 5.750% due 2/15/11 2,200 2,172 ---------- FOOD RETAIL--0.2% Kroger Co. (The) 8.050% due 2/1/10 1,000 1,064 Safeway, Inc. 4.125% due 11/1/08 2,000 1,985 6.500% due 11/15/08 1,000 1,016 ---------- 4,065 ---------- GAS UTILITIES--0.2% Kinder Morgan Management LLC 6.500% due 9/1/12 4,350 4,329 ---------- HEALTH CARE FACILITIES--0.1% HCA, Inc. 144A 9.125% due 11/15/14(b) 1,739 1,839 ---------- HEALTH CARE SERVICE--0.1% Medco Health Solutions, Inc. 7.250% due 8/15/13 1,000 1,054 ---------- HOMEBUILDING--0.1% Horton (D.R.), Inc. 4.875% due 1/15/10 2,500 2,318 ---------- HOTELS, RESORTS & CRUISE LINES--0.1% Starwood Hotels & Resort Worldwide, Inc. 6.250% due 2/15/13 2,815 2,825 ---------- PAR VALUE VALUE (000) (000) --------- ---------- INTEGRATED OIL & GAS--0.1% Texaco Capital, Inc. 5.500% due 1/15/09 $ 1,035 $ 1,042 ---------- INTEGRATED TELECOMMUNICATION SERVICES--0.8% AT&T Corp. 7.300% due 11/15/11 2,200 2,363 Embarq Corp. 6.738% due 6/1/13 4,300 4,471 Qwest Capital Funding, Inc. 7.250% due 2/15/11 4,000 4,020 Qwest Corp. 7.875% due 9/1/11 4,315 4,531 ---------- 15,385 ---------- INVESTMENT BANKING & BROKERAGE--0.7% Goldman Sachs Group, Inc. (The) 4.750% due 7/15/13 3,958 3,778 Lehman Brothers Holdings, Inc. 6.000% due 7/19/12 5,485 5,570 Piper Jaffray Equipment Trust Securities 144A 6.000% due 9/10/11(b) 3,038 2,856 ---------- 12,204 ---------- LIFE & HEALTH INSURANCE--0.1% Principal Life Global Funding I 144A 4.400% due 10/1/10(b) 1,500 1,476 ---------- LIFE SCIENCES TOOLS & SERVICES--0.2% Fisher Scientific International, Inc. 6.750% due 8/15/14 985 992 6.125% due 7/1/15 2,125 2,086 ---------- 3,078 ---------- MORTGAGE REITS--0.3% iStar Financial, Inc. Series B 5.950% due 10/15/13 5,725 5,373 ---------- MOVIES & ENTERTAINMENT--0.2% Time Warner, Inc. 6.875% due 5/1/12 1,500 1,574 Viacom, Inc. 5.750% due 4/30/11 1,800 1,817 ---------- 3,391 ---------- See Notes to Financial Statements 13 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) --------- ---------- MULTI-LINE INSURANCE--0.1% ASIF Global Financing XXIII 144A 3.900% due 10/22/08(b) $ 2,000 $ 1,971 ---------- MULTI-UTILITIES--0.1% Pacific Gas & Electric Co. 3.600% due 3/1/09 2,000 1,957 ---------- OFFICE SERVICES & SUPPLIES--0.2% Steelcase, Inc. 6.500% due 8/15/11 2,825 2,929 ---------- OIL & GAS EQUIPMENT & SERVICES--0.1% Halliburton Co. 5.500% due 10/15/10 1,225 1,239 ---------- OIL & GAS EXPLORATION & PRODUCTION--0.4% Denbury Resources, Inc. 7.500% due 4/1/13 1,000 1,027 Swift Energy Co. 7.625% due 7/15/11 4,875 4,912 XTO Energy, Inc. 5.900% due 8/1/12 1,980 2,018 ---------- 7,957 ---------- OIL & GAS REFINING & MARKETING--0.5% Tesoro Corp. 6.250% due 11/1/12 4,340 4,373 Valero Energy Corp. 4.750% due 6/15/13 4,200 4,006 ---------- 8,379 ---------- OIL & GAS STORAGE & TRANSPORTATION--0.2% ONEOK Partners LP 5.900% due 4/1/12 1,915 1,938 Williams Cos., Inc. (The) 7.125% due 9/1/11 2,500 2,603 ---------- 4,541 ---------- OTHER DIVERSIFIED FINANCIAL SERVICES--0.6% Bank of America Corp. 7.400% due 1/15/11 3,000 3,192 ERAC USA Finance Co. 144A 5.300% due 11/15/08(b) 2,385 2,366 General Electric Capital Corp. 6.125% due 2/22/11 3,000 3,092 PAR VALUE VALUE (000) (000) --------- ---------- OTHER DIVERSIFIED FINANCIAL SERVICES--CONTINUED MassMutual Global Funding II 144A 3.500% due 3/15/10(b) $ 1,750 $ 1,693 ---------- 10,343 ---------- PAPER PACKAGING--0.2% Jefferson Smurfit Corp. 8.250% due 10/1/12 1,595 1,607 Packaging Corp. of America 4.375% due 8/1/08 3,000 2,973 ---------- 4,580 ---------- PAPER PRODUCTS--0.7% Abitibi-Consolidated Finance LP 7.875% due 8/1/09 3,693 3,305 Bowater, Inc. 8.694% due 3/15/10(c) 4,850 4,122 Georgia Pacific Corp. 7.700% due 6/15/15 2,820 2,820 Verso Paper Holdings LLC and Verso Paper, Inc. Series B 9.106% due 8/1/14(c) 2,570 2,596 ---------- 12,843 ---------- PROPERTY & CASUALTY INSURANCE--0.1% Berkley (WR) Corp. 5.125% due 9/30/10 2,000 2,018 ---------- REAL ESTATE MANAGEMENT & DEVELOPMENT--0.3% Colonial Realty LP 4.800% due 4/1/11 5,000 4,833 ---------- RETAIL REITS--0.4% Kimco Realty Corp. 4.820% due 8/15/11 1,100 1,072 Simon Property Group LP 4.600% due 6/15/10 3,825 3,752 5.600% due 9/1/11 1,925 1,928 ---------- 6,752 ---------- SPECIALIZED FINANCE--0.2% CIT Group, Inc. 4.750% due 12/15/10 3,500 3,331 See Notes to Financial Statements 14 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) --------- ---------- SPECIALIZED FINANCE--CONTINUED Yankee Acquisition Corp. Series B 8.500% due 2/15/15 $ 250 $ 244 ---------- 3,575 ---------- SPECIALIZED REITS--0.4% Host Hotels & Resorts LP 6.875% due 11/1/14 4,245 4,256 Ventas Realty LP/Ventas Capital Corp. 6.750% due 6/1/10 2,180 2,218 ---------- 6,474 ---------- SPECIALTY CHEMICALS--0.1% Lubrizol Corp. 4.625% due 10/1/09 1,750 1,736 ---------- THRIFTS & MORTGAGE FINANCE--0.3% Countrywide Financial Corp. 5.800% due 6/7/12 1,770 1,659 Countrywide Home Loans, Inc. 5.625% due 7/15/09 4,000 3,757 ---------- 5,416 ---------- TOBACCO--0.2% Philip Morris Capital Corp. 7.500% due 7/16/09 3,500 3,629 ---------- WIRELESS TELECOMMUNICATION SERVICES--0.1% Nextel Communications, Inc. Series D 7.375% due 8/1/15 2,095 2,129 ---------- - -------------------------------------------------------------------------------- TOTAL DOMESTIC CORPORATE BONDS (IDENTIFIED COST $330,620) 325,749 - -------------------------------------------------------------------------------- NON-AGENCY MORTGAGE-BACKED SECURITIES--20.9% Adjustable Rate Mortgage Trust 05-3, 2A1 4.697% due 7/25/35(c) 3,381 3,354 American General Mortgage Loan Trust 06-1, A2 144A 5.750% due 12/25/35(b) (c) 8,392 8,334 American Home Mortgage Assets 07-2, M4 5.661% due 3/25/47(c) 5,974 5,560 PAR VALUE VALUE (000) (000) --------- ---------- American Tower Trust L 07-1A, C 144A 5.615% due 4/15/37(b) $ 3,685 $ 3,519 Asset Securitization Corp. 96-D3, A1C 7.400% due 10/13/26 226 232 Banc of America Alternative Loan Trust 06-9, A1 6.000% due 1/25/37 13,037 13,049 Bear Stearns Commercial Mortgage Securities 04-ESA, J 144A 5.817% due 5/14/16(b) 8,510 8,664 Bear Stearns Structured Products, Inc. 04-15, A2 144A 0% due 11/27/34(b) 3,001 2,851 Bear Stearns Structured Products, Inc. 04-5, A 144A 0% due 2/25/34(b) 223 218 Bear Stearns Structured Products, Inc. 05-10 144A 7.629% due 4/26/35(b) (c) 4,035 3,875 Bear Stearns Structured Products, Inc. 05-20N, A 144A 8.631% due 10/25/45(b) (c) 3,042 3,027 Bear Stearns Structured Products, Inc. 06-2, 2A1 144A 8.129% due 3/27/46(b) (c) 2,181 2,105 Chase Mortgage Finance Corp. 04-S1 M 5.098% due 2/25/19(c) 2,010 1,936 Chase Mortgage Finance Corp. 04-S3, 3A1 6.000% due 3/25/34 4,031 4,009 Chase Mortgage Finance Corp. 06-A1, 4A1 6.045% due 9/25/36(c) 12,041 12,045 Citicorp Mortgage Securities, Inc. 06-7, 1A1 6.000% due 12/25/36 10,704 10,669 Citigroup Mortgage Loan Trust, Inc. 06-FX1, A4 6.081% due 10/25/36(c) 7,000 7,143 Citigroup Mortgage Loan Trust, Inc. 06-WF1, A2B 5.536% due 3/25/36(c) 2,000 1,996 Countrywide Home Loan Mortgage Pass-Through Trust 02-34, B2 5.750% due 1/25/33 1,669 1,613 See Notes to Financial Statements 15 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) --------- ---------- Countrywide Home Loan Mortgage Pass-Through Trust 02-36, B2 6.000% due 1/25/33 $ 1,668 $ 1,627 Countrywide Home Loan Mortgage Pass-Through Trust 04-13, 1A1 5.500% due 8/25/34 5,870 5,879 Countrywide Home Loan Mortgage Pass-Through Trust 07-1, A2 6.000% due 3/25/37 14,796 14,759 Credit Suisse First Boston Mortgage Securities Corp. 01-CK1, A2 6.250% due 12/18/35 307 307 Credit Suisse First Boston Mortgage Securities Corp. 04-1, 1A1 5.750% due 2/25/34 1,623 1,621 Credit Suisse First Boston Mortgage Securities Corp. 05-12, 6A1 6.000% due 1/25/36 4,835 4,806 Credit Suisse First Boston Mortgage Securities Corp. 97-C2, B 6.720% due 1/17/35 904 904 Credit Suisse First Boston Mortgage Securities Corp. 98-C1, B 6.590% due 5/17/40 1,200 1,209 Credit-Based Asset Servicing and Securitization LLC 05-CB6, A3 5.120% due 7/25/35(c) 6,000 5,930 Crown Castle Towers LLC 05-1A, AFX 144A 4.643% due 6/15/35(b) 6,000 5,889 Crown Castle Towers LLC 06-1A, C 144A 5.470% due 11/15/36(b) 5,000 4,964 DLJ Commercial Mortgage Corp. 98-CF2, A1B 6.240% due 11/12/31 139 140 First Horizon Asset Securities, Inc. 03-2, 1A12 5.750% due 4/25/33 3,920 3,815 First Horizon Assets Securities, Inc. 05-AR1, 2A1 5.010% due 4/25/35(c) 3,556 3,550 PAR VALUE VALUE (000) (000) --------- ---------- First Plus Home Loan Trust 97-3, M2 7.520% due 11/10/23 $ 45 $ 44 First Union - Lehman Brothers - Bank of America 98-C2, A2 6.560% due 11/18/35 7,814 7,827 Franchise Mortgage Acceptance Co. Loan Receivables Trust 98-CA, A2 144A 6.660% due 1/15/12(b) 6,292 5,915 Global Signal Trust 06-1, A2 144A 5.450% due 2/15/36(b) 6,000 6,057 GMAC Mortgage Corp. Loan Trust 05-HE2, A3 4.622% due 11/25/35(c) 2,292 2,266 GMAC Mortgage Corp. Loan Trust 06-HE2, A3 6.320% due 5/25/36 11,335 11,336 Greenwich Structured Adjustable Rate Mortgage Products 05-4A, N1 144A 8.129% due 7/27/45(b) (c) 786 784 GS Mortgage Securities Corp. II 07-EOP, G 144A 6.318% due 3/6/20(b) (c) 5,840 5,743 GS Mortgage Securities Corp. II 07-EOP, H 144A 6.448% due 3/6/20(b) (c) 1,850 1,785 GS Mortgage Securities Corp. II 99-C1, A2 6.110% due 11/18/30(c) 147 147 GSAMP Net Interest Margin Trust 05-NC1 144A 5.000% due 2/25/35(b) (r) 7 6 GSR Mortgage Loan Trust 05-AR6, 3A1 4.561% due 9/25/35(c) 6,209 6,141 Harborview Mortgage Loan Trust 05-15, B8 7.246% due 10/20/45(c) 4,635 4,083 Harborview Mortgage Loan Trust 05-9, B10 7.246% due 6/20/35(c) 5,159 4,914 Harborview Net Interest Margin Corp. 06-12, N1 144A 6.409% due 12/19/36(b) 2,552 2,540 Harborview Net Interest Margin Corp. 06-7A, N1 144A 6.409% due 9/19/36(b) 136 136 See Notes to Financial Statements 16 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) --------- ---------- IndyMac Index Mortgage Loan Trust 06-AR25, 3A1 6.373% due 9/25/36(c) $ 5,052 $ 5,166 IndyMac Index Mortgage Loan Trust 07-AR2, B1 5.873% due 6/25/37(c) 4,739 4,674 JPMorgan Chase Commercial Mortgage Securities Corp. 01-CIBC, A3 6.260% due 3/15/33 487 502 JPMorgan Mortgage Trust 05-S3, 2A2 5.500% due 1/25/21 1,245 1,234 JPMorgan Mortgage Trust 06-A1, B1 5.392% due 2/25/36(c) 7,697 7,638 Lehman Brothers-UBS Commercial Mortgage Trust 07-C6, A2 5.845% due 7/15/40 6,275 6,363 Lehman XS Net Interest Margin 06-GPM4, A1 144A 6.250% due 9/28/46(b) 1,402 1,359 Lehman XS Net Interest Margin 06-GPM5, A1 144A 6.250% due 10/28/46(b) 3,609 3,490 MASTR Alternative Net Interest Margin Trust 05-CW1A, N1 144A 6.750% due 12/26/35(b) (r) 982 815 MASTR Resecuritization Trust 04-2 144A 5.250% due 3/28/34(b) 3,803 3,349 MASTR Resecuritization Trust 04-3 144A 5.000% due 3/28/34(b) 2,097 1,824 MASTR Resecuritization Trust 05-1 144A 5.000% due 10/28/34(b) 2,126 2,006 MASTR Resecuritization Trust 05-2 144A 4.750% due 3/28/34(b) 2,025 1,834 MASTR Resecuritization Trust 05-4CI, N2 144A 8.129% due 4/26/45(b) (c) (r) 3,250 1,658 Merrill Lynch/Countrywide Commercial Mortgage Investors, Inc. 06-3, 2A1 6.095% due 10/25/36(c) 6,800 6,879 PAR VALUE VALUE (000) (000) --------- ---------- Morgan Stanley Mortgage Loan Trust 05-5AR, 4A1 5.528% due 9/25/35(c) $ 2,399 $ 2,384 PNC Mortgage Acceptance Corp. 00-C2, A2 7.300% due 10/12/33(c) 236 247 Residential Accredit Loans, Inc. 05-QA4, A5 5.450% due 4/25/35(c) 8,152 8,167 Residential Funding Mortgage Securities I, Inc. 05-SA1, 2A 4.855% due 3/25/35(c) 3,165 3,162 Residential Funding Mortgage Securities I, Inc. 06-S4, A2 6.000% due 4/25/36 8,619 8,700 SBA Commercial Mortgage- Backed Securities Trust 06-1A, B 144A 5.451% due 11/15/36(b) 2,875 2,835 Structured Asset Securities Corp. 03-32, 1A1 5.208% due 11/25/33(c) 4,639 4,459 Structured Asset Securities Corp. 05-1, 6A1 6.000% due 2/25/35 4,600 4,569 Wachovia Mortgage Loan Trust LLC 06-A, B1 5.418% due 5/20/36(c) 3,445 3,438 Washington Mutual Mortgage Pass-Through Certificates 00-1, M3 6.516% due 1/25/40(c) 85 85 Washington Mutual Mortgage Pass-Through Certificates 06-AR16, 1A1 5.606% due 12/25/36(c) 7,233 7,208 Wells Fargo Mortgage-Backed Securities Trust 04-R, 2A1 4.361% due 9/25/34(c) 5,500 5,438 Wells Fargo Mortgage-Backed Securities Trust 05-14, 2A1 5.500% due 12/25/35 11,111 10,802 Wells Fargo Mortgage-Backed Securities Trust 05-5, 1A1 5.000% due 5/25/20 7,362 7,171 Wells Fargo Mortgage-Backed Securities Trust 05-AR10, 2A16 4.110% due 6/25/35(c) 5,000 4,847 See Notes to Financial Statements 17 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) --------- ---------- Wells Fargo Mortgage-Backed Securities Trust 05-AR16, 6A3 4.992% due 10/25/35(c) $ 8,229 $ 8,182 Wells Fargo Mortgage-Backed Securities Trust 06-11, A8 6.000% due 9/25/36 5,835 5,756 Wells Fargo Mortgage-Backed Securities Trust 06-AR2, B1 5.110% due 3/25/36(c) 13,959 13,491 Wells Fargo Mortgage-Backed Securities Trust 07-AR3, A4 6.068% due 4/25/37(c) 15,947 15,882 - -------------------------------------------------------------------------------- TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $380,246) 374,937 - -------------------------------------------------------------------------------- FOREIGN GOVERNMENT SECURITIES--20.3% ARGENTINA--0.8% Republic of Argentina 5.389% due 8/3/12(c) 15,809 14,212 ---------- AUSTRALIA--1.0% Commonwealth of Australia Series 909 7.500% due 9/15/09 20,280(f) 18,343 ---------- BRAZIL--3.3% Federative Republic of Brazil 9.250% due 10/22/10 5,023 5,598 10.500% due 7/14/14 13,135 16,649 7.875% due 3/7/15 11,840 13,403 12.500% due 1/5/16 27,416(g) 17,455 12.500% due 1/5/22 8,000(g) 5,287 ---------- 58,392 ---------- CANADA--1.1% Commonwealth of Canada 3.750% due 6/1/08 19,095(i) 19,134 ---------- CHILE--0.4% Republic of Chile 5.760% due 1/28/08(c) 4,000 4,000 7.125% due 1/11/12 3,000 3,232 ---------- 7,232 ---------- PAR VALUE VALUE (000) (000) --------- ---------- COLOMBIA--0.8% Republic of Colombia 9.750% due 4/23/09 $ 3,500 $ 3,745 11.750% due 3/1/10 7,733,000(j) 4,001 10.000% due 1/23/12 3,000 3,502 7.330% due 11/16/15(c) 2,900 3,023 ---------- 14,271 ---------- COSTA RICA--0.2% Republic of Costa Rica 144A 9.000% due 3/1/11(b) 4,000 4,416 ---------- GERMANY--1.7% Federal Republic of Germany 144A 3.250% due 4/17/09(b) 21,532(k) 30,321 ---------- MEXICO--1.7% United Mexican States 8.375% due 1/14/11 5,050 5,568 6.625% due 3/3/15 5,815 6,222 United Mexican States Series A 4.625% due 10/8/08 6,000 5,973 United Mexican States Series MI10 9.500% due 12/18/14 132,152(l) 13,166 ---------- 30,929 ---------- NEW ZEALAND--0.5% Commonwealth of New Zealand Series 708 6.000% due 7/15/08 12,294(m) 9,239 ---------- NORWAY--1.2% Kingdom of Norway 5.500% due 5/15/09 113,835(n) 21,325 ---------- PHILIPPINES--0.9% Republic of Philippines 8.375% due 3/12/09 8,610 9,019 8.375% due 2/15/11 6,135 6,702 ---------- 15,721 ---------- RUSSIA--0.0% Russian Federation RegS 8.250% due 3/31/10(e) 675 767 ---------- See Notes to Financial Statements 18 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) --------- ---------- SWEDEN--0.9% Kingdom of Sweden Series 1043 5.000% due 1/28/09 106,825(o) $ 16,793 ---------- TRINIDAD AND TOBAGO--0.2% Republic of Trinidad and Tobago RegS 9.875% due 10/1/09(e) $ 3,000 3,287 ---------- TURKEY--2.0% Republic of Turkey 10.500% due 1/13/08 8,600 8,751 0% due 5/6/09 16,725(p) 10,838 11.750% due 6/15/10 7,570 8,725 11.500% due 1/23/12 5,680 6,844 ---------- 35,158 ---------- UNITED KINGDOM--0.2% United Kingdom Treasury Bond 4.250% due 3/7/11 2,140(h) 4,268 ---------- VENEZUELA--3.4% Republic of Venezuela 8.500% due 10/8/14 26,290 26,421 5.750% due 2/26/16 5,775 4,896 9.250% due 9/15/27 2,000 2,075 Republic of Venezuela RegS 5.375% due 8/7/10(e) 28,572 26,929 ---------- 60,321 ---------- - -------------------------------------------------------------------------------- TOTAL FOREIGN GOVERNMENT SECURITIES (IDENTIFIED COST $352,319) 364,129 - -------------------------------------------------------------------------------- FOREIGN CORPORATE BONDS(d)--7.9% BERMUDA--0.0% Intelsat Bermuda Ltd. 8.886% due 1/15/15(c) 250 254 ---------- CANADA--0.5% Catalyst Paper Corp. Series D 8.625% due 6/15/11 4,000 3,120 European Investment Bank 144A 4.600% due 1/30/37(b) 3,645(i) 3,388 PAR VALUE VALUE (000) (000) --------- ---------- CANADA--CONTINUED Rogers Wireless Communications, Inc. 8.000% due 12/15/12 $ 700 $ 734 Thomson Corp. (The) 4.250% due 8/15/09 1,000 982 ---------- 8,224 ---------- CHILE--0.5% Celulosa Arauco y Constitucion SA 7.750% due 9/13/11 4,780 5,168 Empresa Nacional de Electricidad SA 7.750% due 7/15/08 3,449 3,506 ---------- 8,674 ---------- EGYPT--0.1% Orascom Telecom Finance SCA 144A 7.875% due 2/8/14(b) 1,400 1,332 ---------- GERMANY--0.9% Aries Vermoegensverwaltung GmbH 144A(b) 7.362% due 10/25/07(c) 1,250(k) 1,787 7.750% due 10/25/09 1,500(k) 2,321 Aries Vermoegensverwaltung GmbH RegS 9.600% due 10/25/14(e) 5,000 6,272 Deutsche Bank AG NY Series GS 3.987% due 3/22/12(c) 5,000 4,813 Deutsche Telekom International Finance BV 8.000% due 6/15/10 1,000 1,071 ---------- 16,264 ---------- HONG KONG--0.1% Hutchison Whampoa International Ltd. 144A 5.450% due 11/24/10(b) 2,000 2,015 ---------- INDIA--0.3% ICICI Bank Ltd. 144A 5.750% due 11/16/10(b) 4,775 4,787 ---------- See Notes to Financial Statements 19 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) --------- ---------- KAZAKHSTAN--0.1% Kazkommerts International BV RegS 8.000% due 11/3/15(e) $ 1,000 $ 920 TuranAlem Finance BV 144A 7.875% due 6/2/10(b) 1,500 1,421 ---------- 2,341 ---------- LUXEMBOURG--0.3% Evraz Securities SA 10.875% due 8/3/09 4,000 4,257 Tyco Electronic Group SA 144A 6.000% due 10/1/12(b) 1,515 1,533 ---------- 5,790 ---------- MALAYSIA--0.2% Malaysia International Shipping Corporation Capital Ltd. 144A 5.000% due 7/1/09(b) 2,800 2,790 ---------- MEXICO--0.6% Fideicomiso Petacalco Trust 144A 10.160% due 12/23/09(b) 3,620 3,801 Pemex Project Funding Master Trust 6.125% due 8/15/08 1,000 1,005 Pemex Project Funding Master Trust 144A 6.994% due 6/15/10(b) (c) 1,500 1,526 Vitro S.A. de C.V. 144A 8.625% due 2/1/12(b) 3,925 3,886 ---------- 10,218 ---------- NETHERLANDS--0.4% Majapahit Holding BV 144A 7.250% due 6/28/17(b) 2,250 2,216 NXP BV/NXP Funding LLC 8.110% due 10/15/13(c) 5,040 4,700 ---------- 6,916 ---------- POLAND--0.1% Telekomunikacja Polska SA Finance BV 144A 7.750% due 12/10/08(b) 2,700 2,779 ---------- PAR VALUE VALUE (000) (000) --------- ---------- QATAR--0.1% Ras Laffan Liquefied Natural Gas Co. Ltd. 144A 3.437% due 9/15/09(b) $ 1,928 $ 1,909 ---------- RUSSIA--1.6% AK Transneft OJSC (TransCapitalInvest Ltd.) 144A 5.670% due 3/5/14(b) 5,715 5,575 Russian Agricultural Bank OJSC (RSHB Capital SA) 144A 6.299% due 5/15/17(b) 2,905 2,735 Gazprom International SA 144A 7.201% due 2/1/20(b) 2,719 2,791 Gazprom OAO (Gaz Capital SA) 144A(b) 6.212% due 11/22/16 10,405 10,313 6.510% due 3/7/22 3,235 3,202 TNK-BP Finance SA RegS 6.125% due 3/20/12(e) 4,210 4,042 ---------- 28,658 ---------- SOUTH AFRICA--0.3% Sappi Pappier Holding AG 144A 6.750% due 6/15/12(b) 5,000 4,912 ---------- SOUTH KOREA--0.3% Export-Import Bank of Korea 4.500% due 8/12/09 1,355 1,340 Hynix Semiconductor, Inc. 144A 7.875% due 6/27/17(b) 400 390 Korea Development Bank 4.250% due 11/13/07 1,000 999 3.875% due 3/2/09 3,000 2,940 ---------- 5,669 ---------- SWITZERLAND--0.1% Petroplus Finance Ltd. 144A 6.750% due 5/1/14(b) 2,715 2,620 ---------- TURKEY--0.1% Bosphorus Financial Services Ltd. 144A 7.358% due 2/15/12(b) (c) 2,000 1,980 ---------- See Notes to Financial Statements 20 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) --------- ---------- UKRAINE--0.1% NAK Naftogaz Ukrainy (Standard Bank London Holdings plc) 8.125% due 9/30/09 $ 2,900 $ 2,783 ---------- UNITED KINGDOM--0.1% British Telecommunications plc 8.625% due 12/15/10 1,500 1,651 ---------- UNITED STATES--1.0% Amvescap plc 4.500% due 12/15/09 2,750 2,736 Merrill Lynch & Co., Inc. 10.710% due 3/8/17 8,200(g) 4,574 Morgan Stanley 144A 10.090% due 5/3/17(b) 10,525(g) 5,627 Nova Chemicals Corp. 8.484% due 11/15/13(c) 5,409 5,328 ---------- 18,265 ---------- VENEZUELA--0.1% Corporacion Andina de Fomento 5.200% due 5/21/13 1,000 988 - -------------------------------------------------------------------------------- TOTAL FOREIGN CORPORATE BONDS (IDENTIFIED COST $143,173) 141,819 - -------------------------------------------------------------------------------- DOMESTIC CONVERTIBLE BONDS--0.1% PHARMACEUTICALS--0.1% Par Pharmaceutical Cos., Inc. 2.875% due 9/30/10 1,195 1,104 - -------------------------------------------------------------------------------- TOTAL DOMESTIC CONVERTIBLE BONDS (IDENTIFIED COST $1,041) 1,104 - -------------------------------------------------------------------------------- FOREIGN CREDIT LINKED NOTES--0.2% INDONESIA--0.2% Republic of Indonesia (Citigroup, Inc.) 11.867% due 6/15/09 4,025 3,689 - -------------------------------------------------------------------------------- TOTAL FOREIGN CREDIT LINKED NOTES (IDENTIFIED COST $3,725) 3,689 - -------------------------------------------------------------------------------- PAR VALUE VALUE (000) (000) --------- ---------- DOMESTIC LOAN AGREEMENTS--7.3% ADVERTISING--0.1% Lamar Media Corp. Tranche F 6.860% due 3/31/14(c) $ 925 $ 916 ---------- ALTERNATIVE CARRIERS--0.0% Level 3 Communications, Inc. Tranche B 7.605% due 3/13/14(c) 667 654 ---------- APPAREL RETAIL--0.2% Hanesbrands, Inc. Tranche B 7.320% due 9/5/13(c) 1,478 1,466 HBI Branded Apparel Ltd., Inc. Tranche 2 9.110% due 3/5/14(c) 1,885 1,899 Totes Isotoner Corp. Tranche B 7.860% due 1/16/13(c) 476 462 ---------- 3,827 ---------- APPLICATION SOFTWARE--0.1% Reynolds & Reynolds Co. (The) Tranche FL 7.880% due 10/24/12(c) 2,861 2,732 ---------- AUTOMOBILE MANUFACTURERS--0.4% Ford Motor Co. Tranche B 8.360% due 12/15/13(c) 4,369 4,238 General Motors Corp. Tranche B 7.745% due 11/29/13(c) 2,786 2,709 ---------- 6,947 ---------- AUTOMOTIVE RETAIL--0.1% Hertz Corp. Letter of Credit 5.350% due 12/21/12(c) 285 280 Hertz Corp. Tranche B 7.070% due 12/21/12(c) 1,244 1,222 ---------- 1,502 ---------- BROADCASTING & CABLE TV--0.7% Charter Communications Operating LLC Tranche 7.360% due 3/6/14(c) 4,941 4,793 DIRECTV Holdings LLC Tranche B 6.820% due 4/13/13(c) 558 556 See Notes to Financial Statements 21 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) --------- ---------- BROADCASTING & CABLE TV--CONTINUED Mediacom LLC Tranche C 7.100% due 1/31/15(c) $ 4,462 $ 4,317 PanAmSat Corp./Intelsat Corp. Tranche B2 7.360% due 1/3/14(c) 2,933 2,896 ---------- 12,562 ---------- DATA PROCESSING & OUTSOURCED SERVICES--0.4% First Data Corp. Tranche B2 8.040% due 9/24/14(c) 500 480 First Data Corp. Tranche B3 7.710% due 9/24/14(c) 6,210 6,024 ---------- 6,504 ---------- DEPARTMENT STORES--0.3% Neiman-Marcus Group, Inc. (The) Tranche 7.090% due 4/6/13(c) 5,468 5,372 ---------- DISTRIBUTORS--0.2% Building Materials Holding Corp. Tranche B 7.850% due 11/10/13(c) 3,960 3,603 ---------- DIVERSIFIED CHEMICALS--0.1% Huntsman Corp. Tranche B 7.070% due 8/16/12(c) 2,651 2,664 ---------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--0.1% ARAMARK Corp. Letter of Credit 7.445% due 1/26/14(c) 85 83 ARAMARK Corp. Tranche B 7.470% due 1/26/14(c) 1,184 1,163 ---------- 1,246 ---------- DIVERSIFIED METALS & MINING--0.0% Compass Minerals Group, Inc. Tranche B 6.860% due 12/22/12(c) 472 469 ---------- ELECTRICAL COMPONENTS & EQUIPMENT--0.1% Baldor Electric Co. Tranche 7.063% due 1/31/14(c) 1,024 1,011 ---------- PAR VALUE VALUE (000) (000) --------- ---------- ENVIRONMENTAL & FACILITIES SERVICES--0.3% Allied Waste North America, Inc. Letter of Credit A 7.070% due 3/28/14(c) $ 1,373 $ 1,360 Allied Waste North America, Inc. Tranche B 7.170% due 3/28/14(c) 2,527 2,502 Duratek, Inc. Tranche B 7.630% due 6/30/16(c) 426 418 EnergySolutions LLC Tranche B 7.630% due 6/7/13(c) 888 872 EnviroCare Tranche C 7.570% due 6/30/16(c) 45 45 ---------- 5,197 ---------- FERTILIZERS & AGRICULTURAL CHEMICALS--0.1% Mosaic Co. (The) Tranche B 7.112% due 12/1/13(c) 1,099 1,097 ---------- GENERAL REVENUE--0.0% Wimar Opco LLC/Wimar Opco Finance Corp. Tranche B 7.860% due 1/3/12(c) 464 455 ---------- HEALTH CARE FACILITIES--0.3% HCA, Inc. Tranche B 8.125% due 11/16/13(c) 1,325 1,303 Health Management Associates, Inc. Tranche B 7.110% due 2/28/14(c) 1,247 1,186 LifePoint Hospitals, Inc. Tranche B 6.945% due 4/15/12(c) 2,700 2,633 ---------- 5,122 ---------- HEALTH CARE SERVICES--0.2% Davita Inc. Tranche B1 6.860% due 10/5/12(c) 3,557 3,495 ---------- HOUSEWARES & SPECIALTIES--0.0% Yankee Candle Co., Inc. Tranche B 7.360% due 2/6/14(c) 313 308 ---------- See Notes to Financial Statements 22 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) --------- ---------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS--0.4% Mirant North America LLC Tranche B 7.070% due 1/3/13(c) $ 1,014 $ 1,003 NRG Energy, Inc. Letter of Credit 7.110% due 2/1/13(c) 1,234 1,214 NRG Energy, Inc. Tranche B1 7.110% due 2/1/13(c) 5,267 5,188 ---------- 7,405 ---------- INTEGRATED TELECOMMUNICATION SERVICES--0.3% NTELOS, Inc. Tranche B1 7.488% due 8/24/11(c) 5,230 5,191 ---------- LEISURE FACILITIES--0.1% AMF Bowling Worldwide, Inc. Tranche B 7.820% due 5/17/13(c) 2,014 1,963 ---------- OIL & GAS DRILLING--0.1% Hercules Offshore, Inc. Tranche 7.110% due 7/11/13(c) 1,868 1,840 ---------- OIL & GAS EXPLORATION & PRODUCTION--0.4% Helix Energy Solutions Group, Inc. Tranche 7.453% due 7/1/13(c) 6,603 6,521 ---------- PAPER PRODUCTS--0.7% Domtar, Inc. Tranche B 6.723% due 3/7/14(c) 1,704 1,646 Georgia-Pacific Corp. Tranche A 7.110% due 12/20/10(c) 1,575 1,543 Georgia-Pacific Corp. Tranche B1 7.110% due 12/20/12(c) 4,691 4,597 NewPage Corp. Tranche B 7.625% due 5/2/11(c) 4,002 3,982 ---------- 11,768 ---------- PUBLISHING--0.3% Idearc, Inc. Tranche B 7.320% due 11/17/14(c) 3,375 3,332 PAR VALUE VALUE (000) (000) --------- ---------- PUBLISHING--CONTINUED Tribune Co. Tranche B 8.375% due 5/17/14(c) $ 2,354 $ 2,151 ---------- 5,483 ---------- RESTAURANTS--0.2% Burger King Corp. Tranche B1 6.875% due 6/30/12(c) 4,627 4,575 ---------- SEMICONDUCTORS--0.1% Freescale Semiconductor, Inc. Tranche 7.244% due 12/1/13(c) 2,814 2,687 ---------- SPECIALIZED FINANCE--0.4% Solar Capital Corp. Tranche U.S. 7.356% due 2/11/13(c) 7,480 7,349 ---------- SPECIALTY CHEMICALS--0.1% JohnsonDiversey, Inc. Tranche B 7.860% due 12/16/11(c) 1,071 1,054 ---------- TRADING COMPANIES & DISTRIBUTORS--0.1% United Rentals, Inc. Letter of Credit 7.130% due 2/14/11 304 301 United Rentals, Inc. Tranche B 7.320% due 2/14/11(c) 667 661 ---------- 962 ---------- WIRELESS TELECOMMUNICATION SERVICES--0.4% Cricket Communications, Inc. Tranche B1 7.970% due 6/16/13(c) 3,555 3,515 MetroPCS Wireless, Inc. Tranche B 7.750% due 11/3/13(c) 3,807 3,749 ---------- 7,264 ---------- - -------------------------------------------------------------------------------- TOTAL DOMESTIC LOAN AGREEMENTS (IDENTIFIED COST $131,525) 129,745 - -------------------------------------------------------------------------------- FOREIGN LOAN AGREEMENTS(d)--0.4% GERMANY--0.2% Fresenius Medical Care AG & Co. KGaA Tranche B 6.745% due 3/31/13(c) 3,652 3,506 ---------- See Notes to Financial Statements 23 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) --------- ---------- UNITED KINGDOM--0.2% Yell Group plc Tranche B1 7.320% due 2/10/13(c) $ 1,925 $ 1,887 INEOS Group Holdings plc Tranche B 7.190% due 2/1/14(c) 1,442 1,451 INEOS Group Holdings plc Tranche C 7.690% due 2/1/15(c) 1,441 1,451 ---------- 4,789 ---------- - -------------------------------------------------------------------------------- TOTAL FOREIGN LOAN AGREEMENTS (IDENTIFIED COST $8,463) 8,295 - -------------------------------------------------------------------------------- SHARES --------- DOMESTIC COMMON STOCKS--0.0% INDEPENDENT POWER PRODUCERS & ENERGY TRADERS--0.0% Dynegy, Inc.(s) 131 1 ---------- VALUE (000) ---------- - -------------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $1) $ 1 - -------------------------------------------------------------------------------- TOTAL LONG-TERM INVESTMENTS--98.5% (IDENTIFIED COST $1,779,683) 1,764,028 - -------------------------------------------------------------------------------- PAR VALUE (000) --------- SHORT-TERM INVESTMENTS--0.6% COMMERCIAL PAPER(t)--0.6% Govco, Inc. 5.100% due 10/1/07 $ 10,635 10,635 ---------- - -------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $10,635) 10,635 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS--99.1% (IDENTIFIED COST $1,790,318) 1,774,663(a) Other assets and liabilities, net--0.9% 16,911 ---------- NET ASSETS--100.0% $1,791,574 ========== At September 30, 2007, the Fund had entered into forward currency contracts as follows (reported in 000's): In Unrealized Contract Exchange Settlement Appreciation to Receive for Date Value (Depreciation) - -------------- ----------- ---------- ----------- ---------------- 1,919,130 JPY 17,000 USD 11/30/07 $16,838 $(162) JPY Japanese Yen USD United States Dollar (a) Federal Income Tax Information (reported in 000's): net unrealized depreciation of investment securities is comprised of gross appreciation of $10,045 and gross depreciation of $27,758 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $1,792,376. (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 September 30, 2007, these securities amounted to a value of $262,915 (reported in 000's) or 14.7% of net assets. (c) Variable or step coupon security; interest rate shown reflects the rate currently in effect. (d )A security is considered to be foreign if the security is issued in a foreign country. The country of risk, noted parenthetically, is determined based on criteria described in Note 2G, "Foreign security country determination" in the Notes to Financial Statements. (e) Regulation S security. Security is offered and sold outside of the United States; therefore, it is exempt from registration with the SEC under rules 903 and 904 of the Securities Act of 1933. (f) Par value represents Australian Dollar. (g) Par value represents Brazilian Real. (h) Par value represents British Pound. (i) Par value represents Canadian Dollar. (j) Par value represents Colombian Peso. (k) Par value represents Euro. (l) Par value represents Mexican Peso. (m) Par value represents New Zealand Dollar. (n) Par value represents Norwegian Krone. (o) Par value represents Swedish Krona. (p) Par value represents Turkish Lira. (q) Illiquid security. (r) Illiquid and restricted security. For acquisition information, see Note 7 "Illiquid and Restricted Securities" in the Notes to Financial Statements. (s) Non-income producing. (t) The rate shown is the discount rate. See Notes to Financial Statements 24 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 2007 (Reported in thousands except per share amounts) ASSETS Investment securities at value+ .............................. $ 1,774,663 Cash ......................................................... 5,214 Receivables Investment securities sold ................................ 38,351 Fund shares sold .......................................... 14,830 Interest .................................................. 15,673 Prepaid expenses ............................................. 99 Other assets ................................................. 306 ------------ Total assets ............................................ 1,849,136 ------------ LIABILITIES Payables Fund shares repurchased ................................... 6,552 Investment securities purchased ........................... 46,152 Dividend distributions .................................... 2,316 Investment advisory fee ................................... 766 Distribution and service fees ............................. 504 Transfer agent fee ........................................ 400 Trustee deferred compensation plan ........................ 306 Administration fee ........................................ 119 Professional fee .......................................... 35 Trustees' fee ............................................. 13 Other accrued expenses .................................... 237 Unrealized depreciation on forward currency contracts ........ 162 ------------ Total liabilities........................................ 57,562 ------------ NET ASSETS ................................................... $ 1,791,574 ============ NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest ............. $ 1,812,545 Undistributed net investment income .......................... 1,620 Accumulated net realized loss ................................ (6,606) Net unrealized depreciation .................................. (15,985) ------------ NET ASSETS ................................................... $ 1,791,574 ============ CLASS A Net asset value per share (net assets/shares outstanding) .... $4.70 Offering price per share $4.70/(1-2.25%) ..................... $4.81 Shares of beneficial interest outstanding, no par value, unlimited authorization .................................... 305,698 Net Assets ................................................... $ 1,435,415 CLASS B Net asset value (net assets/shares outstanding) and offering price per share ................................... $4.68 Shares of beneficial interest outstanding, no par value, unlimited authorization .................................... 4,593 Net Assets ................................................... $ 21,487 CLASS C Net asset value (net assets/shares outstanding) and offering price per share ................................... $4.73 Shares of beneficial interest outstanding, no par value, unlimited authorization .................................... 37,877 Net Assets ................................................... $ 179,222 CLASS T Net asset value (net assets/shares outstanding) and offering price per share ................................... $4.72 Shares of beneficial interest outstanding, no par value, unlimited authorization .................................... 32,913 Net Assets ................................................... $ 155,450 + Investment in securities at cost..... .................... $ 1,790,318 See Notes to Financial Statements 25 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND STATEMENT OF OPERATIONS (Reported in thousands) 11/1/06 - 11/1/05 - 9/30/07 10/31/06 ----------- ------------ INVESTMENT INCOME Interest......................................... $ 89,185 $ 83,770 Foreign taxes withheld........................... (71) (109) --------- -------- Total investment income..................... 89,114 83,661 --------- -------- EXPENSES Investment advisory fee.......................... 7,838 7,727 Service fees, Class A............................ 2,843 2,484 Distribution and service fees, Class B........... 175 225 Distribution and service fees, Class C........... 873 1,229 Distribution and service fees, Class T........... 1,411 1,760 Financial agent fee.............................. -- 546 Administration fee............................... 1,226 445 Transfer agent................................... 2,348 1,874 Custodian........................................ 162 174 Printing......................................... 715 368 Professional..................................... 73 52 Registration..................................... 121 110 Trustees......................................... 122 94 Miscellaneous.................................... 205 164 --------- -------- Total expenses.............................. 18,112 17,252 Custodian fees paid indirectly................... (114) (112) --------- -------- Net expenses................................ 17,998 17,140 --------- -------- NET INVESTMENT INCOME (LOSS)..................... 71,116 66,521 --------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments.......... 6,320 (8,382) Net realized gain (loss) on foreign currency transactions ................................. (2,164) (1,328) Net change in unrealized appreciation (depreciation) on investments................. (17,483) 14,482 Net change in unrealized appreciation (depreciation) on foreign currency translations................................. (111) 162 --------- -------- Net gain (loss) on investments................... (13,438) 4,934 --------- -------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............................... $ 57,678 $ 71,455 ========= ======== See Notes to Financial Statements 26 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND Statement of Changes in Net Assets (Reported in thousands)
11/1/06 - 11/1/05 - 11/1/04 - 9/30/07 10/31/06 10/31/05 ----------- ------------ ------------ FROM OPERATIONS Net investment income (loss)...................... $ 71,116 $ 66,521 $ 42,640 Net realized gain (loss).......................... 4,156 (9,710) (5,878) Net change in unrealized appreciation (depreciation).................................. (17,594) 14,644 (24,112) ---------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................. 57,678 71,455 12,650 ---------- ---------- ---------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A.................... (57,792) (43,783) (22,136) Net investment income, Class B.................... (1,076) (1,171) (1,135) Net investment income, Class C.................... (8,376) (6,355) (10,274) Net investment income, Class T.................... (6,070) (10,060) (5,267) Net realized short-term gains, Class A ........... -- -- (242) Net realized short-term gains, Class B ........... -- -- (10) Net realized short-term gains, Class C ........... -- -- (87) Net realized short-term gains, Class T ........... -- -- (57) Net realized long-term gains, Class A ............ -- -- (2,351) Net realized long-term gains, Class B ............ -- -- (120) Net realized long-term gains, Class C ............ -- -- (1,088) Net realized long-term gains, Class T ............ -- -- (559) ---------- ---------- ---------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS................................. (73,314) (61,369) (43,326) ---------- ---------- ---------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A......................................... 385,342 236,133 463,840 Change in net assets from share transactions, Class B......................................... (6,128) (5,366) 588 Change in net assets from share transactions, Class C......................................... (24,573) (92,138) 65,116 Change in net assets from share transactions, Class T......................................... 3,465 (43,654) 80,388 ---------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS.............................. 358,106 94,975 609,932 ---------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS ............ 342,470 105,061 579,256 NET ASSETS Beginning of period............................... 1,449,104 1,344,043 764,787 ---------- ---------- ---------- END OF PERIOD..................................... $1,791,574 $1,449,104 $1,344,043 ========== ========== ========== Undistributed net investment income .............. $ 1,620 $ 1,251 $ 326
See Notes to Financial Statements 27 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
NET NET ASSET NET REALIZED TOTAL DIVIDENDS DISTRIBUTIONS VALUE, INVESTMENT AND FROM FROM NET FROM NET BEGINNING INCOME UNREALIZED INVESTMENT INVESTMENT REALIZED RETURN OF OF PERIOD (LOSS) GAIN (LOSS) OPERATIONS INCOME GAINS CAPITAL - ------------------------------------------------------------------------------------------------------------------------------------ CLASS A 11/1/06-9/30/07 $4.74 0.21(2) (0.03) 0.18 (0.22) -- -- 11/1/05-10/31/06 4.70 0.22(2) 0.03 0.25 (0.21) -- -- 11/1/04-10/31/05 4.83 0.20(2) (0.12) 0.08 (0.19) --(8) (0.02) 11/1/03-10/31/04 4.78 0.21 0.06 0.27 (0.22) -- -- 11/1/02-10/31/03(6) 4.56 0.22 0.21 0.43 (0.21) -- -- 11/1/01-10/31/02(5)(6) 4.58 0.25 (0.02) 0.23 (0.25) -- -- CLASS B 11/1/06-9/30/07 $4.72 0.19(2) (0.03) 0.16 (0.20) -- -- 11/1/05-10/31/06 4.68 0.20(2) 0.02 0.22 (0.18) -- -- 11/1/04-10/31/05 4.82 0.18(2) (0.14) 0.04 (0.16) --(8) (0.02) 11/1/03-10/31/04 4.77 0.19 0.05 0.24 (0.19) -- -- 11/1/02-10/31/03(7) 4.55 0.20 0.21 0.41 (0.19) -- -- 11/1/01-10/31/02(5)(7) 4.56 0.22 -- 0.22 (0.23) -- --
(1) Sales charges, where applicable, are not reflected in the total return calculation. (2) Computed using average shares outstanding. (3) Annualized. (4) Not annualized. (5) As required, effective November 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 October 31, 2002, was to increase the ratio of net investment income to average net assets from 5.24% to 5.25% for Class A and from 4.77% to 4.79% for Class B. There was no effect on net investment income per share and net realized and unrealized gains and losses per share. (6) In accordance with changes in generally accepted accounting principles, the Fund reclassified periodic payments made under interest rate swap agreements, previously included within interest income, as a component of realized gain (loss) in the statement of operations. The effect of this reclassification for Class A shares had no impact on net investment income or net realized and unrealized gain (loss) per share for the periods ended October 31, 2003 and 2002, respectively. The net investment income ratio decreased by 0.06% and 0.16% for the periods ended October 31, 2003 and 2002, respectively. (7) In accordance with changes in generally accepted accounting principles, the Fund reclassified periodic payments made under interest rate swap agreements, previously included within interest income, as a component of realized gain (loss) in the statement of operations. The effect of this reclassification for Class B shares was to reduce net investment income and to increase net realized and unrealized gain (loss) per share by $0.00 and $0.01 for the periods ended October 31, 2003 and 2002, respectively. The net investment income ratio decreased by 0.06% and 0.17% for the periods ended October 31, 2003 and 2002, respectively. (8) Amount is less than $0.01. See Notes to Financial Statements 28
RATIO OF RATIO OF NET NET OPERATING NET CHANGE ASSET ASSETS, EXPENSES TO INVESTMENT IN NET VALUE, END OF AVERAGE INCOME TO TOTAL ASSET END OF TOTAL PERIOD NET AVERAGE NET PORTFOLIO DISTRIBUTIONS VALUE PERIOD RETURN(1) (000'S) ASSETS ASSETS TURNOVER - ------------------------------------------------------------------------------------------------------------------------------------ CLASS A 11/1/06-9/30/07 (0.22) (0.04) $4.70 3.84%(4) $1,435,415 1.11%(3) 4.93%(3) 57%(4) 11/1/05-10/31/06 (0.21) 0.04 4.74 5.37 1,062,479 1.04 4.75 93 11/1/04-10/31/05 (0.21) (0.13) 4.70 1.64 819,283 1.02 4.24 83 11/1/03-10/31/04 (0.22) 0.05 4.83 5.69 372,463 1.03 4.17 95 11/1/02-10/31/03(6) (0.21) 0.22 4.78 9.68 229,020 1.08 4.28 135 11/1/01-10/31/02(5)(6) (0.25) (0.02) 4.56 5.22 83,665 1.23 5.09 146 CLASS B 11/1/06-9/30/07 (0.20) (0.04) $4.68 3.38%(4) $ 21,487 1.61%(3) 4.40%(3) 57%(4) 11/1/05-10/31/06 (0.18) 0.04 4.72 4.64 27,845 1.54 4.24 93 11/1/04-10/31/05 (0.18) (0.14) 4.68 1.12 33,003 1.51 3.72 83 11/1/03-10/31/04 (0.19) 0.05 4.82 5.16 33,325 1.52 3.68 95 11/1/02-10/31/03(7) (0.19) 0.22 4.77 9.17 30,457 1.58 3.88 135 11/1/01-10/31/02(5)(7) (0.23) (0.01) 4.55 4.94 21,450 1.73 4.62 146
See Notes to Financial Statements 29 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD (CONTINUED)
NET NET ASSET NET REALIZED TOTAL DIVIDENDS DISTRIBUTIONS VALUE, INVESTMENT AND FROM FROM NET FROM NET BEGINNING INCOME UNREALIZED INVESTMENT INVESTMENT REALIZED RETURN OF OF PERIOD (LOSS) GAIN (LOSS) OPERATIONS INCOME GAINS CAPITAL - --------------------------------------------------------------------------------------------------------------------------------- CLASS C 11/1/06-9/30/07 $4.77 0.20(2) (0.03) 0.17 (0.21) -- -- 11/1/05-10/31/06 4.73 0.21(2) 0.02 0.23 (0.19) -- -- 11/1/04-10/31/05 4.87 0.19(2) (0.13) 0.06 (0.18) --(9) (0.02) 11/1/03-10/31/04 4.81 0.21 0.05 0.26 (0.20) -- -- 11/1/02-10/31/03(7) 4.58 0.21 0.22 0.43 (0.20) -- -- 11/1/01-10/31/02(6)(7) 4.59 0.23 --(9) 0.23 (0.24) -- -- CLASS T 11/1/06-9/30/07 $4.76 0.18(2) (0.03) 0.15 (0.19) -- -- 11/1/05-10/31/06 4.73 0.19(2) 0.01 0.20 (0.17) -- -- 11/1/04-10/31/05 4.86 0.17(2) (0.13) 0.04 (0.15) --(9) (0.02) 11/1/03-10/31/04 4.80 0.18 0.06 0.24 (0.18) -- -- 6/2/03(5)-10/31/03(8) 4.82 0.07 (0.02) 0.05 (0.07) -- --
(1) Sales charges, where applicable, are not reflected in the total return calculation. (2) Computed using average shares outstanding. (3) Annualized. (4) Not annualized. (5) Inception date of the Class. (6) As required, effective November 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 Class C shares for the year ended October 31, 2002, was to increase the ratio of net investment income to average net assets from 4.93% to 4.95%. There was no effect on net investment income per share and net realized and unrealized gains and losses per share. (7) In accordance with changes in generally accepted accounting principles, the Fund reclassified periodic payments made under interest rate swap agreements, previously included within interest income, as a component of realized gain (loss) in the statement of operations. The effect of this reclassification for Class C shares was to reduce net investment income and to increase net realized and unrealized gain (loss) per share by $0.00 and $0.01 for the periods ended October 31, 2003 and 2002, respectively. The net investment income ratio decreased by 0.01% and 0.17% for the periods ended October 31, 2003 and 2002, respectively. (8) In accordance with changes in generally accepted accounting principles, the Fund reclassified periodic payments made under interest rate swap agreements, previously included within interest income, as a component of realized gain (loss) in the statement of operations. The effect of this reclassification for Class T shares was to reduce net investment income and to increase net realized and unrealized gain (loss) per share by $0.00 for the period ending October 31, 2003. The net investment income ratio for the period ending October 31, 2003 decreased by 0.15%. (9) Amount is less than $0.01. See Notes to Financial Statements 30
RATIO OF RATIO OF NET NET OPERATING NET CHANGE ASSET ASSETS, EXPENSES TO INVESTMENT IN NET VALUE, END OF AVERAGE INCOME TO TOTAL ASSET END OF TOTAL PERIOD NET AVERAGE NET PORTFOLIO DISTRIBUTIONS VALUE PERIOD RETURN(1) (000'S) ASSETS ASSETS TURNOVER - ------------------------------------------------------------------------------------------------------------------------------------ CLASS C 11/1/06-9/30/07 (0.21) (0.04) $4.73 3.57%(4) $179,222 1.36%(3) 4.66%(3) 57%(4) 11/1/05-10/31/06 (0.19) 0.04 4.77 5.07 205,385 1.28 4.48 93 11/1/04-10/31/05 (0.20) (0.14) 4.73 1.15 295,926 1.26 3.98 83 11/1/03-10/31/04 (0.20) 0.06 4.87 5.59 238,854 1.27 3.92 95 11/1/02-10/31/03(7) (0.20) 0.23 4.81 9.60 163,436 1.33 4.02 135 11/1/01-10/31/02(6)(7) (0.24) (0.01) 4.58 5.17 52,101 1.47 4.78 146 CLASS T 11/1/06-9/30/07 (0.19) (0.04) $4.72 3.11%(4) $155,450 1.86%(3) 4.17%(3) 57%(4) 11/1/05-10/31/06 (0.17) 0.03 4.76 4.34 153,395 1.79 3.98 93 11/1/04-10/31/05 (0.17) (0.13) 4.73 0.84 195,830 1.76 3.48 83 11/1/03-10/31/04 (0.18) 0.06 4.86 5.05 120,145 1.78 3.40 95 6/2/03(5)-10/31/03(8) (0.07) (0.02) 4.80 1.10 26,646 1.90 3.06 135
See Notes to Financial Statements 31 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 1. ORGANIZATION Phoenix Opportunities Trust (the "Trust") is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. As a result of a consolidation of several Phoenix trusts, the Trust acquired a number of Phoenix Funds effective June 27, 2007 and September 24, 2007 including Phoenix Multi-Sector Short Term Bond Fund (the "Fund"). All the acquired funds' year ends were changed to correspond with the Trust's September 30th year end. As of the date of this report, nineteen funds are offered for sale, of which the Fund is reported in this annual report. The Fund's investment objective is outlined in the fund summary page. The Fund offers Class A Shares, Class B Shares, Class C Shares and Class T Shares for sale. Class A shares are sold with a front-end sales charge of up to 2.25%. Generally, Class A shares are not subject to any charges when redeemed; however, a 1% contingent deferred sales charge may be imposed on certain redemptions within one year on purchases on which a finder's fee has been paid. Class B shares are sold with a contingent deferred sales charge which declines from 2% to zero depending on the period of time the shares are held. Class C shares are sold without a sales charge. Class T shares of the Fund are sold with a 1% contingent deferred sales charge if redeemed within one year of purchase. Each class of shares has identical voting, dividend, liquidation and other rights and the same terms and conditions, except that each class bears different distribution and/or service expenses and has exclusive voting rights with respect to its distribution plan. Income and other expenses and realized and unrealized gains and losses of the Fund are borne pro rata by the holders of each class of shares. 2. SIGNIFICANT ACCOUNTING POLICIES 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 and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. A. SECURITY VALUATION: Equity securities are valued at the official closing price (typically last sale) on the exchange on which the securities are primarily traded, or if no closing price is available, 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. As required, some securities and assets may be valued at fair value as determined in good faith by or under the direction of the Trustees. 32 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) Certain foreign common stocks may be fair valued in cases where closing prices are not readily available or are deemed not reflective of readily available market prices. For example, significant events (such as movement in the U.S. securities market, or other regional and local developments) may occur between the time that foreign markets close (where the security is principally traded) and the time that the Fund calculates its net asset value (generally, the close of the NYSE) that may impact the value of securities traded in these foreign markets. In these cases, information from an external vendor may be utilized to adjust closing market prices of certain foreign common stocks to reflect their fair value. Because the frequency of significant events is not predictable, fair valuation of certain foreign common stocks may occur on a frequent basis. Certain securities held by the Trust were valued on the basis of a price provided by a principal market maker. The prices provided by the principal market makers may differ from the value that would be realized if the securities were sold. At September 30, 2007, the total value of these securities represented approximately 5.7% of the net assets of the Fund. Short-term investments having a remaining maturity of 60 days or less are valued at amortized cost, which approximates market. In September 2006, Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("SFAS 157"), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures. 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 Fund amortizes premiums and accretes discounts using the effective interest method. Realized gains and losses are determined on the identified cost basis. C. INCOME TAXES: The Fund is treated as a separate taxable entity. It is the policy of each Fund in the Trust to comply with the requirements of the Internal Revenue Code and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes or excise taxes has been made. The Fund may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable based upon current interpretations of the tax rules and regulations that exist in the markets in which it invests. In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation 48 ("FIN 48"), "Accounting for Uncertainty in Income Taxes." This standard defines the threshold for recognizing the benefits of tax-return positions in the financial statements as "more-likely-than-not" to be sustained by the taxing authority and requires measurement of a tax position meeting the more-likely-than-not criterion, based on the largest benefit that is more than 50 percent likely to be realized. Management has analyzed the Funds' tax positions taken on federal income tax returns for all open tax 33 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) years (tax years ended December 31, 2003 - 2006) for purposes of implementing FIN 48, and has concluded that no provision for income tax is required in the Funds' financial statements. D. DISTRIBUTIONS TO SHAREHOLDERS: Distributions are recorded by the Fund on the ex-dividend date. Income distributions are recorded daily. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences may include the treatment of non-taxable dividends, market premium and discount, non-deductible expenses, expiring capital loss carryovers, foreign currency gain or loss, gain or loss on futures contracts, partnerships, operating losses and losses deferred due to wash sales. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital paid in on shares of beneficial interest. E. EXPENSES: Expenses incurred by the Trust with respect to more than one Fund are allocated in proportion to the net assets of each Fund, except where allocation of direct expense to each Fund or an alternative allocation method can be more appropriately made. F. 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 date 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 isolate that portion of the results of operations arising from either changes in exchange rates or in the market prices of securities. G. FOREIGN SECURITY COUNTRY DETERMINATION: A combination of the following criteria is used to assign the countries of risk listed in the schedule of investments: country of incorporation, actual building address, primary exchange on which the security is traded and country in which the greatest percentage of company revenue is generated. H. FORWARD CURRENCY CONTRACTS: The 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 34 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) daily and the change in market value is recorded by each Fund as an unrealized gain or loss. When the contract is closed or offset with the same counterparty, the Fund records a realized gain or loss equal to the change in the value of the contract when it was opened and the value at the time it was closed or offset. I. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS: The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued and delayed delivery securities on the trade date. The Fund maintains collateral for the securities purchased. Securities purchased on a when-issued or delayed delivery basis begin earning interest on the settlement date. J. LOAN AGREEMENTS: The Fund may invest in direct debt instruments which are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates. The Fund's investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. A loan is often administered by a bank or other financial institution (the lender) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. When investing in a loan participation, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan agreement and only upon receipt by the lender of payments from the borrower. The Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund may be subject to the credit risk of both the borrower and the lender that is selling the loan agreement. When the Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan. Direct indebtedness of emerging countries involves a risk that the government entities responsible for the repayment of the debt may be unable, or unwilling, to pay the principal and interest when due. Currently, the Fund only holds assignment loans. K. CREDIT LINKED NOTES: The Fund may invest in credit linked notes which are usually issued by a special purpose vehicle that is selling credit protection through a credit default swap. The performance of the notes is linked to the performance of the underlying reference obligation. The special purpose vehicle invests the proceeds from the notes to cover its contingent obligation. Credit linked notes may also have risks with default by the referenced obligation, currency and/or interest rates. L. SWAP AGREEMENTS: The Fund may invest in swap agreements, including interest rate, index, total return, credit default and foreign currency exchange rate swaps. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate and foreign currency swaps involve the exchange by the Fund with another party of their respective commitments to pay or receive interest or foreign currency (e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal). Total return swap agreements involve commitments to pay interest in exchange for a market-linked index, based on the notional amount. To the extent the total return of the security or index involved in the transaction exceeds or falls short of the set interest obligation, the Fund will receive a payment or make a payment to the counterparty. 35 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) Credit default swaps involve the payment of amounts based on a specified rate multiplied by a notional amount as well as upon an event of default. In connection with these agreements securities may be set aside as collateral by the Funds' custodian. Swaps are marked-to-market daily based upon quotations from market makers and the change, if any, is recorded as an unrealized gain or loss in the Statement of Operations. Net payments of interest are recorded as net realized gains. Entering into these agreements involves, to varying degrees, elements of credit and market risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreement may default on its obligation to perform and that there may be unfavorable changes in the fluctuation of interest and/or exchange rates. M. DEBT INDEX SECURITIES: The Fund may invest in securities that represent an interest in a diversified portfolio (the "basket") of debt instruments (the "underlying securities"). Under the term of the baskets, the Fund has direct ownership in each underlying security equal to its pro rata interest in the basket. In the event of default of any underlying security, the notional amount on which interest is earned is reduced by the par amount of the defaulted security, and the pro rata interest of such security is distributed to the Fund. Debt index securities are comprised of a basket of credit default swaps referencing a diversified pool of high yield or emerging markets debt instruments. Certain baskets may be purchased on a funded or unfunded basis such that the Fund receives interest payments based upon the notional amount or par amount of the basket. In connection with these investments collateral may be set aside by the Fund's custodian. In the event of default of any of the underlying notional securities within the unfunded basket, the Trust will be required to pay the counterparty an amount equal to its pro rata share of the notional amount of the defaulted security and similarly the Fund will then receive its pro rata interest of the defaulted security or equivalent cash amount. In a funded transaction, in the event of default of any par securities in the funded basket, the Fund would be required to receive its pro rata interest of the defaulted security or equivalent cash amount. 3. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS Phoenix Investment Counsel, Inc. ("PIC") (the "Adviser") is the adviser to the Fund. As compensation for its services to the Fund, PIC, an indirect wholly-owned subsidiary of The Phoenix Companies, Inc. ("PNX"), is entitled to a fee based upon the following annual rates as a percentage of the average daily net assets of the Fund. 1ST $1+ - $2 $2+ BILLION BILLION BILLION ------------ ------------ -------------- 0.55% 0.50% 0.45% Goodwin Capital Advisers, Inc. ("Goodwin"), an indirect wholly-owned subsidiary of PNX, is the subadviser to the Fund. 36 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) As distributor of the Fund's shares, Phoenix Equity Planning Corporation ("PEPCO"), an indirect wholly-owned subsidiary of PNX, has advised the Fund that it retained net selling commissions and deferred sales charges for the fiscal year(1) (the "period") ended September 30, 2007, as follows (reported in 000's): CLASS A CLASS A CLASS B CLASS C CLASS T NET SELLING DEFERRED DEFERRED DEFERRED DEFERRED COMMISSIONS SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES ------------- -------------- ------------- ------------- -------------- $32 $--(2) $27 $--(2) $32 (1) The fiscal year for this fund is November 1, 2006 through September 30, 2007. (2) Amount is less than $1,000. The Fund pays PEPCO distribution and/or service fees at the following annual rates as a percentage of the average daily net assets of each respective class: CLASS A CLASS B CLASS C CLASS T ------------ ----------- ---------- --------- 0.25% 0.75% 0.50% 1.00% Under certain circumstances, shares of certain Phoenix Funds may be exchanged for shares of the same class of certain other Phoenix Funds on the basis of the relative net asset values per share at the time of the exchange. On exchanges with share classes that carry a contingent deferred sales charge, the CDSC schedule of the original shares purchased continues to apply. PEPCO serves as the administrator to the Fund. For its services, which includes financial agent services, PEPCO receives an administrative fee at an annual rate of 0.09% of the first $5 billion, 0.08% on the next $10 billion, and 0.07% over $15 billion of the average net assets across all non-money market funds in the Phoenix Funds and The Phoenix Edge Series Fund. For the period ended September 30, 2007, the Fund incurred administration fees totaling $1,226 (reported in 000's). PEPCO serves as the Fund's transfer agent with Boston Financial Data Services, Inc. serving as sub-transfer agent. For the period ended September 30, 2007, transfer agent fees were $2,348 (reported in 000's) as reported in the Statement of Operations. At September 30, 2007, PNX and its affiliates and Phoenix affiliated Funds held shares which aggregated the following (reported in 000's): AGGREGATE NET ASSET SHARES VALUE -------------- ------------------ Class A shares 1,078 $5,065 Until March 1, 2007, the Trust provided a deferred compensation plan to its trustees who were not officers of PNX. Under the deferred compensation plan, trustees were able to elect to defer all or a portion of their compensation. Amounts deferred were retained by the Fund, and to the extent permitted by the 1940 Act, as amended, could have been invested in the shares of those funds selected by the trustees. Investments in such funds are included in "Other assets" on the Statements of Assets and Liabilities at September 30, 2007. 37 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) 4. PURCHASES AND SALES OF SECURITIES Purchases and sales of investment securities for the Fund (excluding U.S. Government securities and agency securities, forward currency contracts, and short-term securities) during the period ended September 30, 2007, were as follows: (REPORTED IN 000'S) ---------------------------------- PURCHASES SALES ---------------- -------------- $958,526 $587,520 Purchases and sales of long-term U.S. Government and agency securities for the Fund during the period ended September 30, 2007, were as follows: (REPORTED IN 000'S) ---------------------------------- PURCHASES SALES ---------------- -------------- $354,020 $321,731 5. CAPITAL SHARES Transactions (reported in 000's) in shares of capital stock, for the periods ended as indicated, were as follows:
--------------------------- --------------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- -------- -------- --------- -------- - ---------------------------- --------------------------- --------------------------- ------------------------ MULTI-SECTOR 111/1/06(1) - 11/1/05 - 11/1/04 SHORT TERM BOND FUND 9/30/07 10/31/06 10/31/05 - ---------------------------- --------------------------- --------------------------- ------------------------ CLASS A Shares sold 145,165 $ 686,127 151,778 $ 713,454 147,289 $ 702,351 Reinvestment of distributions 10,182 48,092 7,325 34,423 3,484 16,588 Redemptions (73,905) (348,877) (109,181) (511,744) (53,527) (255,099) -------- --------- --------- --------- -------- --------- Net increase / (decrease) 81,442 $ 385,342 49,922 $ 236,133 97,246 $ 463,840 ======== ========= ========= ========= ======== ========= CLASS B Shares sold 920 $ 4,328 1,291 $ 6,045 2,290 $ 10,899 Reinvestment of distributions 164 771 170 797 139 660 Redemptions (2,388) (11,227) (2,609) (12,208) (2,301) (10,971) -------- --------- --------- --------- -------- --------- Net increase / (decrease) (1,304) $ (6,128) (1,148) $ (5,366) 128 $ 588 ======== ========= ========= ========= ======== ========= CLASS C Shares sold 7,252 $ 34,538 11,032 $ 52,248 42,188 $ 203,249 Reinvestment of distributions 1,316 6,263 1,522 7,207 1,594 7,654 Redemptions (13,717) (65,374) (32,038) (151,593) (30,356) (145,787) -------- --------- --------- --------- -------- --------- Net increase / (decrease) (5,149) $ (24,573) (19,484) $ (92,138) 13,426 $ 65,116 ======== ========= ========= ========= ======== ========= CLASS T Shares sold 9,696 $ 46,121 8,658 $ 40,931 24,347 $ 117,013 Reinvestment of distributions 925 4,398 816 3,858 423 2,022 Redemptions (9,901) (47,054) (18,719) (88,443) (8,068) (38,647) -------- --------- --------- --------- -------- --------- Net increase / (decrease) 720 $ 3,465 (9,245) $ (43,654) 16,702 $ 80,388 ======== ========= ========= ========= ======== =========
38 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) 6. 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. High yield/high risk securities typically entail greater price volatility and/or principal and interest rate risk. There is a greater chance that an issuer will not be able to make principal and interest payments on time. Analysis of the creditworthiness of issuers of high yield securities may be complex, and as a result, it may be more difficult for the adviser and/or subadviser to accurately predict risk. The Fund may invest a high percentage of its assets in specific sectors of the market in its pursuit of a greater investment return. Fluctuations in these sectors of concentration may have a greater impact on the Fund, positive or negative, than if the Fund did not concentrate its investments in such sectors. 7. ILLIQUID AND RESTRICTED SECURITIES Investments shall be considered illiquid if they cannot be disposed of in seven days in the ordinary course of business at the approximate amount at which such securities have been valued by the Fund. Additionally, the following information is also considered in determining illiquidity: the frequency of trades and quotes for the investment, whether the investment is listed for trading on a recognized domestic exchange and/or whether two or more brokers are willing to purchase or sell the security at a comparable price, the extent of market making activity in the investment and the nature of the market for investment. Illiquid securities are footnoted as such at the end of the Fund's Schedule of Investments where applicable. Restricted securities are illiquid securities, as defined above, not registered under the Securities Act of 1933. Generally, 144A securities are excluded from this category, except where defined as illiquid. At September 30, 2007, the Fund held the following restricted securities (reported in 000's): MARKET % OF ACQUISITION ACQUISITION VALUE NET ASSETS DATE COST AT 9/30/07 AT 9/30/07 ------------ ------------- ----------- ---------- MASTR Alternative Net Interest Margin 05-6, CW1A, N1 144A 6.750%, 12/26/35 11/18/05 $ 998 $ 815 0.0% MASTR Alternative Net Interest Margin 06-6, N1 144A 6.129%, 9/26/46 8/3/06 1,450 967 0.1 MASTR Resecuritization Trust 05-6, 4C1, N2 144A 8.129%, 4/26/45 1/12/06 3,250 1,658 0.1 GSAMP Net Interest Margin Trust 05-NC1 144A 5.000%, 2/25/35 2/7/05 7 6 0.0 39 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) The Fund will bear any costs, including those involved in registration under the Securities Act of 1933, in connection with the disposition of such securities. 8. INDEMNIFICATIONS Under the Fund's organizational documents, its trustees and officers are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, the Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these arrangements. 9. REGULATORY EXAMS Federal and state regulatory authorities from time to time make inquiries and conduct examinations regarding compliance by The Phoenix Companies, Inc. and its subsidiaries (collectively "the Company") with securities and other laws and regulations affecting their registered products. During 2004 and 2005, the Boston District Office of the Securities and Exchange Commission ("SEC") conducted an examination of the Company's investment company and investment adviser affiliates. Following the examination, the staff of the SEC Boston District Office issued a deficiency letter noting perceived weaknesses in procedures for monitoring trading to prevent market timing activity prior to 2004. The staff requested the Company to conduct an analysis as to whether shareholders, policyholders and contract holders who invested in the funds that may have been affected by undetected market timing activity had suffered harm and to advise the staff whether the Company believes reimbursement is necessary or appropriate under the circumstances. Market timing is an investment technique involving frequent short-term trading of mutual fund shares that is designed to exploit market movements or inefficiencies in the way mutual fund companies price their shares. A third party was retained to assist the Company in preparing the analysis. In 2005, based on the third party analysis the Company notified the staff at the SEC Boston District Office that reimbursements were not appropriate under the circumstances. In February 2005, the NASD notified PNX that it was asserting violations of trade reporting rules by a subsidiary. PNX responded to the NASD allegations in May 2005. Thereafter, in January 2007, the NASD notified PNX that the matter was referred for potential violations and possible action. On May 3, 2007, the NASD accepted a letter of acceptance, waiver and consent submitted by the PXP subsidiary to resolve this matter. Without admitting or denying the NASD's findings, in accordance with the terms of the letter the PXP subsidiary agreed to a censure, to pay a fine of $8,000 and to revise its supervisory procedures. The Company does not believe that the outcome of this matter will be material to these financial statements. 10. FEDERAL INCOME TAX INFORMATION (REPORTED IN 000'S) The Fund has capital loss carryovers which may be used to offset future capital gains, as follows: Expiration Year 2014 Total -------------- ----------------- $5,307 $5,307 40 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) The Fund may not realize the benefit of these losses to the extent the Fund does not realize gains on investments prior to the expiration of the capital loss carryovers. For the period ended September 30, 2007, the Fund utilized losses of $2,036 deferred in prior years against current year capital gains. The components of distributable earnings on a tax basis (excluding unrealized appreciation (depreciation) which is disclosed in the Schedules of Investments) consist of undistributed ordinary income of $1,787 and undistributed long-term capital gains of $0. The differences between the book and tax basis components of distributable earnings relate principally to the timing of recognition of income and gains for federal income tax purposes. Short-term gain distributions reported in the Statements of Changes in Net Assets, if any, are reported as ordinary income for federal tax purposes. 11. RECLASSIFICATION OF CAPITAL ACCOUNTS For financial reporting purposes, book basis capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Permanent reclassifications can arise from differing treatment of certain income and gain transactions, nondeductible current year net operating losses, expiring capital loss carryovers and investments in passive foreign investment companies. The reclassifications have no impact on the net assets or net asset value of the Funds. As of September 30, 2007, the Fund recorded reclassifications to increase (decrease) the accounts as listed below (reported in 000's): Capital Paid in On Shares of Accumulated Undistributed Beneficial Net Realized Net Investment Interest Gain (Loss) Income (Loss) --------------- -------------- ---------------- $(272) $(2,296) $2,568 41 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM [LOGO OMITTED] PricewaterhouseCoopers LLP To the Board of Trustees of Phoenix Opportunities Trust and Shareholders of Phoenix Multi-Sector Short Term Bond Fund In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations, changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Phoenix Multi-Sector Short Term Bond Fund (formerly a series of Phoenix Multi-Series Fund and now a series of Phoenix Opportunities Trust, hereafter referred to as the "Trust") at September 30, 2007, the results of its operations for the period November 1, 2006 to September 30, 2007 and for the year ended October 31, 2006, the changes in its net assets for the period November 1, 2006 to September 30, 2007 and for each of the two years in the period ended October 31, 2006 and the financial highlights for the period November 1, 2006 to September 30, 2007 and for each of the five years in the period ended October 31, 2006, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. /s/ PricewaterhouseCoopers LLP - ------------------------------------ Boston, Massachusetts November 20, 2007 42 BOARD OF TRUSTEES' CONSIDERATION OF INVESTMENT ADVISORY AND SUBADVISORY AGREEMENTS PHOENIX OPPORTUNITIES TRUST SEPTEMBER 30, 2007 (UNAUDITED) BOARD OF TRUSTEES' CONSIDERATION OF INVESTMENT ADVISORY AND SUBADVISORY AGREEMENTS FOR PHOENIX CA TAX-EXEMPT BOND FUND, PHOENIX CORE BOND FUND, PHOENIX DIVERSIFIER PHOLIO, PHOENIX EMERGING MARKETS BOND FUND, PHOENIX FOREIGN OPPORTUNITIES FUND, PHOENIX GLOBAL UTILITIES FUND, PHOENIX HIGH YIELD FUND, PHOENIX INTERNATIONAL STRATEGIES FUND, PHOENIX MARKET NEUTRAL FUND, PHOENIX MONEY MARKET FUND, PHOENIX MULTI-SECTOR FIXED INCOME FUND, PHOENIX MULTI-SECTOR SHORT TERM BOND FUND, PHOENIX REAL ESTATE SECURITIES FUND, PHOENIX WEALTH ACCUMULATOR PHOLIO, PHOENIX WEALTH BUILDER PHOLIO, PHOENIX WEALTH GUARDIAN PHOLIO AND PHOENIX WORLDWIDE STRATEGIES FUND (EACH, A "FUND") Each of the above-referenced Funds is the result of a reorganization with an identical counterpart fund from a different Phoenix Fund trust. The reorganizations were conducted to relocate the funds from other Phoenix Fund trusts into the Phoenix Opportunities Trust. Although newly formed, the above-referenced Funds have taken on all attributes of each identical counterpart including all aspects of the previously approved advisory and subadvisory agreements for which Board of Trustee considerations were previously reported in the appropriate shareholder report. 43 RESULTS OF SHAREHOLDER MEETING PHOENIX OPPORTUNITIES TRUST OCTOBER 31, 2006 (Unaudited) At a special meeting of shareholders of Phoenix Opportunities Trust (the "Trust") held on October 31, 2006, shareholders voted on the following proposals: NUMBER OF ELIGIBLE UNITS VOTED: FOR AGAINST -------------- ---------------- To elect eleven Trustees to serve on the Board of Trustees until the next meeting of shareholders at which Trustees are elected. E. Virgil Conway............... 121,064,647 625,812 Harry Dalzell-Payne............ 121,064,647 625,812 Daniel T. Geraci............... 121,051,683 638,777 Francis E. Jeffries............ 121,064,647 625,812 Leroy Keith, Jr................ 121,064,647 625,812 Marilyn E. LaMarche............ 121,063,658 626,802 Philip R. McLoughlin........... 121,064,647 625,812 Geraldine M. McNamara.......... 121,063,658 626,802 James M. Oates................. 121,064,647 625,812 Richard E. Segerson............ 121,064,647 625,812 Ferdinand L.J. Verdonck........ 121,064,647 625,812 FOR AGAINST ABSTAIN ---------------- ---------------- ------------ To ratify the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the Trusts..... 120,692,791 177,364 820,305 44 RESULTS OF SHAREHOLDER MEETING PHOENIX OPPORTUNITIES TRUST NOVEMBER 21, 2006 (Unaudited) At a special meeting of shareholders of Phoenix Multi-Sector Short Term Bond Fund (the "Fund"), a series of Phoenix Opportunities Trust (the "Trust") held on November 21, 2006, shareholders voted on the following proposals:
NUMBER OF ELIGIBLE UNITS VOTED: BROKER FOR AGAINST ABSTAIN NON-VOTES ---------- ---------- -------- ----------- To approve a proposal to permit Phoenix Investment Counsel, Inc. to hire and replace subadvisers or to modify subadvisory agreements without shareholder approval................ 96,624,869 6,459,990 4,160,324 51,785,755 To approve the amendment of fundamental investment restrictions of the Fund with respect to loans ................... 96,776,666 5,839,796 4,628,722 51,785,755 To approve a proposal to reclassify the investment objective of the Investment Objective Funds from fundamental to non-fundamental ..... 95,672,405 6,716,041 4,856,737 51,785,755
Shareholders of Phoenix Multi-Sector Short Term Bond Fund did NOT approve these proposals. 45 FUND MANAGEMENT TABLES (UNAUDITED) Information pertaining to the Trustees and officers of the Trust as of September 30, 2007 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 - -------------------------------------------------------------------------------- NAME YEAR OF BIRTH YEAR ELECTED PRINCIPAL OCCUPATION(S) # OF FUNDS IN FUND COMPLEX DURING PAST 5 YEARS AND OVERSEEN BY TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE - -------------------------------------------------------------------------------- E. Virgil Conway Chairman, Rittenhouse Advisors, LLC YOB: 1929 (consulting firm) (2001-present). Elected: 2000 Trustee/Director, Phoenix Funds Family 55 Funds (1983-present), Director, Urstadt Biddle Property Corp. (1989-present), Consolidated Edison Company of New York, Inc. (1970-2002), Union Pacific Corp. (1978-2002), Accuhealth, Inc. (1994-2002). - -------------------------------------------------------------------------------- Harry Dalzell-Payne Retired. Trustee/Director, Phoenix Funds YOB: 1929 Family (1983-present). Elected: 1999 55 Funds - -------------------------------------------------------------------------------- Francis E. Jeffries Director, The Empire District Electric YOB: 1930 Company (1984-2004). Trustee/Director, Elected: 2005 Phoenix Funds Complex (1987-present). 58 Funds - -------------------------------------------------------------------------------- Leroy Keith, Jr. Managing Director, Almanac Capital YOB: 1939 Management (commodities business) (since Elected: 2005 2007). Director/Trustee, Evergreen Funds 55 Funds (93 portfolios) (1989-present). Trustee, Phoenix Funds Family (1980-present). Director, Lincoln Educational Services Corp. (2002-2004). Partner, Stonington Partners, Inc. (private equity firm) (2001-2007). - -------------------------------------------------------------------------------- Geraldine M. McNamara Retired. Trustee/Director, Phoenix Funds YOB: 1951 Complex (2001-present). Managing Elected: 2001 Director, U.S. Trust Company of New York 57 Funds (private bank) (1982-2006). - -------------------------------------------------------------------------------- James M. Oates Trustee/Director, Phoenix Funds Family YOB: 1946 (1987-present). Managing Director, Elected: 2005 Wydown Group (consulting firm) 55 Funds (1994-present). Director, Investors Bank & Trust Corporation (1995-present), Stifel Financial (1996-present). Independent Chairman (2005-present) and Trustee (2004-present), John Hancock Trust (93 portfolios). Trustee, John Hancock Funds II (74 portfolios) (2005-present). Director/Trustee, Plymouth Rubber Co. (1995-2003). Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services) (1997-2006). Trustee, John Hancock Funds III (8 portfolios) (2005-2006). - -------------------------------------------------------------------------------- 46 FUND MANAGEMENT TABLES (UNAUDITED) (CONTINUED) INDEPENDENT TRUSTEES - -------------------------------------------------------------------------------- NAME YEAR OF BIRTH YEAR ELECTED PRINCIPAL OCCUPATION(S) # OF FUNDS IN FUND COMPLEX DURING PAST 5 YEARS AND OVERSEEN BY TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE - -------------------------------------------------------------------------------- Richard E. Segerson Managing Director, Northway Management Company YOB: 1946 (1998-present). Trustee/Director, Phoenix Funds Elected: 2005 Family (1983-present). 55 Funds - -------------------------------------------------------------------------------- Ferdinand L.J. Verdonck Chairman, Amsterdam Molecular Therapeutics YOB: 1942 N.V. (biotechnology) (since 2007). Director, Elected: 2005 The JP Morgan European Investment Trust 55 Funds (1998-present), Galapagos N.V. (biotechnology) (2005-present). Trustee, Phoenix Funds Family (2004-present). Director, EASDAQ (Chairman) (2001-present), Groupe SNEF (electrical and electronic installation) (1998-present). Managing Director, Almanij N.V. (financial holding company) (1992-2003). Director, KBC Bank and Insurance Holding Company (1992-2003), KBC Bank (1992-2003), KBC Insurance (1992-2003), Kredietbank S.A. Luxembourgeoise (1992-2003), Investco N.V. (private equity company) (1992-2003), Gevaert N.V. (industrial holding company) (1992-2003), Fidea N.V. (insurance company) (1992-2003), Almafin N.V. (real estate investment company) (1992-2003), Centea N.V. (savings bank) (1992-2003), Degussa Antwerpen N.V. (1998-2004), Santens N.V. (textiles) (1999-2004), Dictaphone Corp. (2002-2006), Banco Urquijo (Chairman) (1998-2006). - -------------------------------------------------------------------------------- 47 FUND MANAGEMENT TABLES (UNAUDITED) (CONTINUED) INTERESTED TRUSTEES Each of the individuals listed below is an "interested person" of the Fund, as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended, and the rules and regulations thereunder. - -------------------------------------------------------------------------------- NAME YEAR OF BIRTH YEAR ELECTED PRINCIPAL OCCUPATION(S) # OF FUNDS IN FUND COMPLEX DURING PAST 5 YEARS AND OVERSEEN BY TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE - -------------------------------------------------------------------------------- George R. Aylward(1) Senior Executive Vice President and YOB: 1964 President, Asset Management (since 2007), Elected: 2006 Senior Vice President and Chief Operating 57 Funds Officer, Asset Management (2004-2007), Vice President (2001-2004), The Phoenix Companies, Inc. Director and President (2006-present), Chief Operating Officer (2004-present), Executive Vice President (2004-2006), Vice President, Finance, (2001-2002), Phoenix Investment Partners, Ltd. Various senior officer and directorship positions with Phoenix affiliates. President (2006-present), Executive Vice President (2004-2006), the Phoenix Funds Family. Chairman, President and Chief Executive Officer, The Zweig Fund Inc. and The Zweig Total Return Fund Inc. (2006-present). - -------------------------------------------------------------------------------- Marilyn E. LaMarche(2) Limited Managing Director, Lazard Freres & YOB: 1934 Co. LLC (1997-present). Trustee/Director, Elected: 2005 Phoenix Funds Family (2002-present). 55 Funds Director, The Phoenix Companies, Inc. (2001-2005). - -------------------------------------------------------------------------------- Philip R. McLoughlin(3) Partner, Cross Pond Partners, LLC YOB: 1946 (2006-Present). Director, PXRE Corporation Elected: 1999 (Reinsurance) (1985-present), World Trust 75 Funds Fund (1991-present). Director/Trustee, Chairman Phoenix Funds Complex (1989-present). Management Consultant (2002-2004), Chairman (1997-2002), Chief Executive Officer (1995-2002) and Director (1995-2002), Phoenix Investment Partners, Ltd. Director and Executive Vice President, The Phoenix Companies, Inc. (2000-2002). - -------------------------------------------------------------------------------- (1) Mr. Aylward is an "interested person," as defined in the Investment Company Act of 1940, by reason of his relationship with Phoenix Investment Partners, Ltd. and its affiliates. (2) Ms. LaMarche is an "interested person," as defined in the Investment Company Act of 1940, by reason of her former position as a Director of The Phoenix Companies, Inc. (3) Mr. McLoughlin is an "interested person," as defined in the Investment Company Act of 1940, by reason of his former relationship with Phoenix Investment Partners, Ltd. and its affiliates. 48 FUND MANAGEMENT TABLES (UNAUDITED) (CONTINUED) OFFICERS OF THE TRUST WHO ARE NOT TRUSTEES - -------------------------------------------------------------------------------- POSITION(S) HELD WITH NAME, ADDRESS AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) YEAR OF BIRTH TIME SERVED DURING PAST 5 YEARS - -------------------------------------------------------------------------------- Nancy G. Curtiss Senior Vice President Assistant Treasurer YOB: 1952 since 2006. (2001-present), Vice President, Fund Accounting (1994-2000), Phoenix Equity Planning Corporation. Vice President, Phoenix Investment Partners, Ltd. (2003-present). Senior Vice President, the Phoenix Funds Family (since 2006). Vice President, The Phoenix Edge Series Fund (1994-present), Treasurer, The Zweig Fund Inc. and The Zweig Total Return Fund Inc. (2003-present). Chief Financial Officer (2005-2006) and Treasurer (1994-2006), or Assistant Treasurer (2005-2006), certain funds within the Phoenix Fund Complex. - -------------------------------------------------------------------------------- Francis G. Waltman Senior Vice President Senior Vice President, YOB: 1962 since 2004. Asset Management Product Development of The Phoenix Companies, Inc. (2006-present). Senior Vice President, Asset Management Product Development (2005-present), Senior Vice President and Chief Administrative Officer (2003-2004) of Phoenix Investment Partners, Ltd. Director and President (2006-present) of Phoenix Equity Planning Corporation. Mr. Waltman is also Senior Vice President of Phoenix Investment Counsel, Inc., Director of Duff & Phelps Investment Management Company, Senior Vice President of the Phoenix Funds Family (2004-present). - -------------------------------------------------------------------------------- Marc Baltuch Vice President and Chief Compliance Officer, c/o Zweig-DiMenna Chief Compliance Officer Zweig-DiMenna Associates Associates, LLC since 2004. LLC (1989-present). Vice 900 Third Avenue President and Chief New York, NY 10022 Compliance Officer, YOB: 1945 certain Funds within the Phoenix Funds Complex (2004- present). Vice President, The Zweig Total Return Fund, Inc. (2004-present). Vice President, The Zweig Fund, Inc. (2004-present). President and Director of Watermark Securities, Inc. (1991-present). Assistant Secretary of Gotham Advisors Inc. (1990-present). Secretary, Phoenix-Zweig Trust (1989-2003). Secretary, Phoenix-Euclid Market Neutral Fund (1999-2002). - -------------------------------------------------------------------------------- 49 FUND MANAGEMENT TABLES (UNAUDITED) (CONTINUED) OFFICERS OF THE TRUST WHO ARE NOT TRUSTEES - -------------------------------------------------------------------------------- POSITION(S) HELD WITH NAME, ADDRESS AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) YEAR OF BIRTH TIME SERVED DURING PAST 5 YEARS - -------------------------------------------------------------------------------- W. Patrick Bradley Chief Financial Officer Vice President, Fund YOB: 1972 and Treasurer since 2005. Administration, Phoenix Investment Partners, Ltd. (2004-present). Chief Financial Officer and Treasurer (2006-present) or Chief Financial Officer and Treasurer (2005-present), certain funds within the Phoenix Funds Family. Vice President, Chief Financial Officer, Treasurer and Principal Accounting Officer, The Phoenix Edge Series Fund (2006-present). Assistant Treasurer, certain funds within the Phoenix Fund Complex (2004-2006). Senior Manager (2002-2004), Manager (2000-2002), Audit, Deloitte & Touche, LLP. - -------------------------------------------------------------------------------- Kevin J. Carr Vice President, Vice President and One American Row Chief Legal Officer, Counsel, Phoenix Life Hartford, CT 06102 Counsel and Secretary Insurance Company YOB: 1954 since 2005. (2005-present). Vice President, Counsel, Chief Legal Officer and Secretary, the Phoenix Funds Family (2005- present). Compliance Officer of Investments and Counsel, Travelers Life & Annuity Company (January 2005-May 2005). Assistant General Counsel, The Hartford Financial Services Group (1999-2005). - -------------------------------------------------------------------------------- 50 PHOENIX OPPORTUNITIES TRUST 101 Munson Street Greenfield, MA 01301-9668 TRUSTEES George R. Aylward E. Virgil Conway Harry Dalzell-Payne Francis E. Jeffries Leroy Keith, Jr. Marilyn E. LaMarche Philip R. McLoughlin, Chairman Geraldine M. McNamara James M. Oates Richard E. Segerson Ferdinand L.J. Verdonck OFFICERS George R. Aylward, President Nancy G. Curtiss, Senior Vice President Francis G. Waltman, Senior Vice President Marc Baltuch, Vice President and Chief Compliance Officer W. Patrick Bradley, Chief Financial Officer and Treasurer Kevin J. Carr, Vice President, Chief Legal Officer, Counsel and Secretary INVESTMENT ADVISER Phoenix Investment Counsel, Inc. 56 Prospect Street Hartford, CT 06115-0480 PRINCIPAL UNDERWRITER Phoenix Equity Planning Corporation One American Row Hartford, CT 06103-2899 TRANSFER AGENT Phoenix Equity Planning Corporation One American Row Hartford, CT 06103-2899 CUSTODIAN State Street Bank and Trust Company P.O. Box 5501 Boston, MA 02206-5501 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP 125 High Street Boston, MA 02110-1707 HOW TO CONTACT US Mutual Fund Services 1-800-243-1574 Advisor Consulting Group 1-800-243-4361 Telephone Orders 1-800-367-5877 Text Telephone 1-800-243-1926 Web site PHOENIXFUNDS.COM - -------------------------------------------------------------------------------- IMPORTANT NOTICE TO SHAREHOLDERS The Securities and Exchange Commission has modified mailing regulations for semiannual and annual shareholder fund reports to allow mutual fund companies to send a single copy of these reports to shareholders who share the same mailing address. If you would like additional copies, please call Mutual Fund Services at 1-800-243-1574. - -------------------------------------------------------------------------------- THIS PAGE INTENTIONALLY BLANK. --------------- PRESORTED STANDARD U.S. POSTAGE PAID Lancaster, PA Permit No. 1793 --------------- [GRAPHIC OMITTED] PHOENIX Phoenix Equity Planning Corporation P.O. Box 150480 Hartford, CT 06115-0480 For more information about Phoenix mutual funds, please call your financial representative, contact us at 1-800-243-1574 or visit PHOENIXFUNDS.COM PXP5033 10-07 BPD33235 [GRAPHIC OMITTED] PHOENIX - -------------------------------------------------------------------------------- ANNUAL REPORT PHOENIX REAL ESTATE SECURITIES FUND | | WOULDN'T YOU RATHER HAVE THIS TRUST NAME: | | DOCUMENT E-MAILED TO YOU? PHOENIX | | ELIGIBLE SHAREHOLDERS CAN OPPORTUNITIES | | SIGN UP FOR E-DELIVERY AT TRUST | September 30, 2007 | PHOENIXFUNDS.COM ................................................................................. NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE TABLE OF CONTENTS Message to Shareholders................................................ 1 Glossary............................................................... 2 Disclosure of Fund Expenses............................................ 4 Phoenix Real Estate Securities Fund.................................... 6 Notes to Financial Statements.......................................... 16 Report of Independent Registered Public Accounting Firm................ 23 Board of Trustees' Consideration of Investment Advisory and Subadvisory Agreements ........................................... 24 Results of Shareholder Meetings........................................ 25 Fund Management Tables................................................. 27 - -------------------------------------------------------------------------------- PROXY VOTING PROCEDURES (FORM N-PX) The adviser and subadviser vote proxies relating to portfolio securities in accordance with procedures that have been approved by the Trust's Board of Trustees. You may obtain a description of these procedures, along with information regarding how the Funds voted proxies during the most recent 12-month period ended June 30, 2007, free of charge, by calling toll-free 1-800-243-1574. This information is also available through the Securities and Exchange Commission's website at http://www.sec.gov. FORM N-Q INFORMATION The Trust files a complete schedule of portfolio holdings with the Securities and Exchange Commission (the "SEC") for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC's website at http://www.sec.gov. Form N-Q may be reviewed and copied at the SEC's Public Reference Room. Information on the operation of the SEC's Public Reference Room can be obtained by calling toll-free 1-800-SEC-0330. - -------------------------------------------------------------------------------- This report is not authorized for distribution to prospective investors in the Phoenix Opportunities Trust unless preceded or accompanied by an effective prospectus which includes information concerning the sales charge, each Fund's record and other pertinent information. MESSAGE TO SHAREHOLDERS Dear PhoenixFunds Shareholder: [PHOTO OMITTED] We are pleased to provide this report for the fiscal period ended September 30, 2007. It includes valuable information about your Phoenix mutual fund(s)--such as performance- and fee-related data and information about the fund's portfolio holdings and transactions for the reporting period. The report also provides commentary from your fund's management team with respect to the fund's performance, its investment strategies, and how the fund performed against the broader market. At Phoenix, we are committed to helping investors succeed over the long term and we strive to provide investors with choice. The Phoenix family of funds offers a wide array of investment options to help make diversification easy. Our multi-manager, multi-style approach gives you access to a complete suite of investment products, including numerous equity, fixed income and money market funds. We are proud to offer this diversified portfolio of funds managed by more than a dozen accomplished independent investment managers--many of whom were previously only available to large institutional investors. Their investment expertise allows us to offer a variety of styles, including growth, value and core products, along with asset allocation funds and alternative investments. Phoenix is also committed to providing you best-in-class service. Whether you need to check your account value or transfer funds, our customer service team stands ready to provide superior, dependable assistance to help you make informed decisions. Because we offer such an extensive selection of investment options, it's important that you consult an experienced financial professional for help reviewing or rebalancing your portfolio on a regular basis. A regular "checkup" can be an excellent way to help ensure that your investments are aligned with your financial goals. As president of Phoenix Investment Partners, Ltd., I would like to thank you for entrusting your assets with us. It's our privilege to serve you. Sincerely yours, /s/ George R. Aylward - ---------------------------- George R. Aylward President, PhoenixFunds OCTOBER 2007 1 GLOSSARY FFCB Federal Farm Credits Bank Funding Corporation FHLB Federal Home Loan Bank FNMA OR "FANNIE MAE" Federal National Mortgage Association FTSE NAREIT EQUITY REITS INDEX The FTSE NAREIT Equity REITs Index is a free-float market capitalization-weighted index measuring equity tax-qualified real estate investment trusts, which meet minimum size and liquidity criteria, that are listed on the New York Stock Exchange, the American Stock Exchange and the NASDAQ National Market System. The index is calculated on a total return basis with dividends reinvested. REITS Real estate investment trusts are typically publicly traded companies that own, develop and operate income-producing real estate such as apartments, office buildings, hotels, shopping centers and other commercial properties. S&P 500(R) INDEX The S&P 500(R) Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. INDEXES ARE UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT; THEREFORE, THEIR PERFORMANCE DOES NOT REFLECT THE EXPENSES ASSOCIATED WITH ACTIVE MANAGEMENT OF AN ACTUAL PORTFOLIO. 2 THIS PAGE INTENTIONALLY BLANK. 3 PHOENIX REAL ESTATE SECURITIES FUND DISCLOSURE OF FUND EXPENSES (UNAUDITED) FOR THE SIX-MONTH PERIOD OF APRIL 1, 2007 TO SEPTEMBER 30, 2007 We believe it is important for you to understand the impact of costs on your investment. All mutual funds have operating expenses. As a shareholder of the Phoenix Real Estate Securities Fund (the "Fund"), a fund in the Phoenix Opportunities Trust, you incur two types of costs: (1) transaction costs, including sales charges on purchases of Class A shares and contingent deferred sales charges on Class B and Class C shares; and (2) ongoing costs, including investment advisory fees; distribution and service fees; and other expenses. Class I shares are sold without a sales charge and do not incur distribution and service fees. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period. ACTUAL EXPENSES This section of the accompanying tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second section of the accompanying tables provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not your Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the accompanying tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges or contingent deferred sales charges. Therefore, the second line of the accompanying tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower depending on the amount of your investments and timing of any purchases or redemptions. 4 PHOENIX REAL ESTATE SECURITIES FUND DISCLOSURE OF FUND EXPENSES (UNAUDITED) (CONTINUED) FOR THE SIX-MONTH PERIOD OF APRIL 1, 2007 TO SEPTEMBER 30, 2007 EXPENSE TABLE - -------------------------------------------------------------------------------- Beginning Ending Expenses Account Account Annualized Paid Value Value Expense During April 1, 2007 September 30, 2007 Ratio Period* - -------------------------------------------------------------------------------- REAL ESTATE SECURITIES FUND - -------------------------------------------------------------------------------- ACTUAL Class I $1,000.00 $ 923.40 1.11% $ 5.35 Class A 1,000.00 922.70 1.32 6.36 Class B 1,000.00 919.30 2.07 9.96 Class C 1,000.00 919.30 2.07 9.96 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class I 1,000.00 1,019.43 1.11 5.63 Class A 1,000.00 1,018.37 1.32 6.70 Class B 1,000.00 1,014.56 2.07 10.51 Class C 1,000.00 1,014.56 2.07 10.51 * Expenses are equal to the Fund's annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period. You can find more information about the Fund's expenses in the Financial Statements section that follows. For additional information on operating expenses and other shareholder costs, refer to the prospectus. 5 PHOENIX REAL ESTATE SECURITIES FUND TICKER SYMBOLS: A Share: PHRAX B Share: PHRBX C Share: PHRCX I Share: PHRIX o PHOENIX REAL ESTATE SECURITIES FUND ("REAL ESTATE SECURITIES FUND") To seek capital appreciation and income with approximately equal emphasis. THERE IS NO GUARANTEE THAT THE FUND WILL ACHIEVE ITS OBJECTIVE. o For the fiscal period of December 1, 2006 to September 30, 2007, the Fund's Class A shares returned -6.14%*, Class B shares returned -6.72%*, Class C shares returned -6.71% and Class I shares returned -4.44% for the period of December 29, 2006 (inception of the Class) to September 30, 2007. For the fiscal period, the S&P 500(R) Index, a broad-based equity index, returned 10.66%*, and the FTSE NAREIT Equity REITs Index, which is the Fund's style-specific benchmark, returned -4.97%*. * Returns less than 1 year are not annualized. ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE. HOW DID THE EQUITY REIT MARKET PERFORM DURING THE FUND'S FISCAL PERIOD? o Our benchmark, the FTSE NAREIT Equity Index, delivered a 5.68% return for the one year period ended September 30, 2007. o Drivers included real estate space market fundamentals, which remain solid overall, and real estate's lease duration and clarity of cash flows, which are the primary reasons why bottom-up consensus estimates for the FTSE NAREIT Equity Index for both '07 and '08 have held up, and in fact were slightly positive through September 30th. At the same time, the earnings estimates for the S&P 500 companies dropped by 120 basis points for '07 from December 31, 2006 and over 370 basis points for '08 from just April 2007. The lower earnings volatility of the FTSE NAREIT Equity Index compared to the S&P 500 is one of the attractive attributes supporting the allocation to this alternative. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL PERIOD? o As measured by the Class A shares, the Fund outperformed the benchmark for the fiscal year ended September 30, 2007 on a gross basis. o In the last two quarters of the fiscal year, credit issues became quite apparent, borrowing spreads widened, lending standards tightened, and the Street bumped its cap rates in advance of what it expected to see in the direct private real estate asset market. Domestic REIT mutual fund redemptions as measured by Strategic Insight Simfund/MF commenced in March 2007 in what started out as profit taking and continued through September 2007. Ultimately, after several months of pressure, the valuations of REITs, which had seen prices increase through the first week of February 2007, and their dividend yield, attracted buyers in August 2007 and benefited from the Fed's easing. o We were pleased to see the importance of fundamental factors return in the quarter ended September 30, 2007 and impact relative REIT performance as the air went out of the go-private M&A balloon. The go-private M&A window appears to have closed for now and, barring a significant improvement in the credit landscape, is unlikely to reopen in the near-term. o A higher risk premia has now increased the cost of capital for all publicly traded companies. Borrowing costs have increased for all companies, even those with more conservative levels of debt, such as equity REITs. 6 PHOENIX REAL ESTATE SECURITIES FUND (CONTINUED) o Tighter lending standards are making it more difficult for highly leveraged private funds/investors to compete with equity REITs. As a result of the increase in risk premia, the number of competitors to REITs for acquisitions has decreased and the standards applied to new construction loans have increased, reducing the threat of the shadow pipeline to existing landlords. At the same time, the demand for space remains solid overall across core property types, but is likely to slow somewhat for new development as the economy and job growth slow. o Consistency is the key to long-term superior performance. The portfolio management team at Duff & Phelps has maintained the same philosophy, style, process and discipline since we began managing the Fund. We continue to emphasize secure, attractive and visible dividend yields and diversification of holdings. o As we close our annual thoughts we honor our long-term colleague and dear friend Michael Schatt, who we lost after a brief illness in August 2007. Michael, along with Geoffrey Dybas, the Fund's senior portfolio manager, had co-founded our REIT products discipline at Duff & Phelps and helped build a strong team with a collaborative approach. Michael was a man of absolute integrity and devoted to his work, family, and community. INVESTING IN REITS INVOLVES CERTAIN RISKS SUCH AS REFINANCING, CHANGES IN THE VALUE OF PROPERTIES REITS OWN, DEPENDENCY ON MANAGEMENT SKILLS, ECONOMIC IMPACT ON THE INDUSTRY AND RISKS SIMILAR TO THOSE LINKED TO SMALL-COMPANY INVESTING. INVESTING IN SECTOR FUNDS OR NON-DIVERSIFIED FUNDS MAY BE MORE VOLATILE THAN INVESTING IN BROADLY DIVERSIFIED FUNDS, AND MAY BE MORE VOLATILE TO ADVERSE ECONOMIC, POLITICAL OR REGULATORY DEVELOPMENTS AFFECTING A SINGLE ISSUER THAN WOULD BE THE CASE IF IT WERE MORE BROADLY DIVERSIFIED. SECTOR WEIGHTINGS as of 9/30/07* - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Regional Malls 16% - -------------------------------------------------------------------------------- Office 15% - -------------------------------------------------------------------------------- Shopping Centers 14% - -------------------------------------------------------------------------------- Apartments 13% - -------------------------------------------------------------------------------- Industrial 9% - -------------------------------------------------------------------------------- Lodging/Resorts 8% - -------------------------------------------------------------------------------- Health Care 7% - -------------------------------------------------------------------------------- Other (includes short-term investments) 18% - -------------------------------------------------------------------------------- * % of total investments as of September 30, 2007. 7 AVERAGE ANNUAL TOTAL RETURNS(1) for periods ended 9/30/07 - --------------------------------------------------------------------------------
Inception 1 5 10 to Inception Year Years Years 9/30/07 Date - ----------------------------------------------------------------------------------------- CLASS I SHARES -- -- -- (4.44)% 12/29/06 - ----------------------------------------------------------------------------------------- CLASS A SHARES AT NAV(2) 4.51% 22.51% 13.58% -- -- - ----------------------------------------------------------------------------------------- CLASS A SHARES AT POP(3),(4) (1.50) 21.07 12.91 -- -- - ----------------------------------------------------------------------------------------- CLASS B SHARES AT NAV(2) 3.76 21.60 12.73 -- -- - ----------------------------------------------------------------------------------------- CLASS B SHARES WITH CDSC(4) (0.22) 21.60 12.73 -- -- - ----------------------------------------------------------------------------------------- CLASS C SHARES AT NAV(2) 3.74 -- -- 21.35 7/25/03 - ----------------------------------------------------------------------------------------- CLASS C SHARES AT CDSC(2) 3.74 -- -- 21.35 7/25/03 - ----------------------------------------------------------------------------------------- S&P 500(R) INDEX 16.44 15.46 6.58 NOTE 5 -- - ----------------------------------------------------------------------------------------- FTSE NAREIT EQUITY REITS INDEX 5.68 21.52 12.18 NOTE 6 -- - -----------------------------------------------------------------------------------------
FUND EXPENSE RATIOS(7): I SHARES: GROSS 1.03%; NET 1.03%, A SHARES: GROSS 1.28%, NET 1.28%, B SHARES: GROSS 2.03%, NET 2.03%; C SHARES: GROSS 2.03%, NET 2.03%. ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END. (1) TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE AND THE REINVESTMENT OF BOTH DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. (2) "NAV" (NET ASSET VALUE) TOTAL RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES CHARGE. (3) "POP" (PUBLIC OFFERING PRICE) TOTAL RETURNS INCLUDE THE EFFECT OF THE MAXIMUM FRONT-END 5.75% SALES CHARGE. (4) CDSC (CONTINGENT DEFERRED SALES CHARGE) IS APPLIED TO REDEMPTIONS OF CERTAIN CLASSES OF SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE. CDSC CHARGES FOR CLASS B SHARES DECLINE FROM 5% TO 1% OVER A FIVE YEAR PERIOD. CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL REDEMPTIONS OF CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER. (5) INDEX PERFORMANCE IS 12.72% FOR CLASS C (SINCE 7/25/03) AND 9.13% FOR CLASS I (SINCE 12/29/06). (6) INDEX PERFORMANCE IS 20.79% FOR CLASS C (SINCE 7/25/03) AND (3.46)% FOR CLASS I (SINCE 12/29/06). (7) PER PROSPECTUS EFFECTIVE 6/27/07. NET EXPENSE: EXPENSES REDUCED BY A CONTRACTUAL FEE WAIVER IN EFFECT THROUGH AT LEAST 3/31/08. GROSS EXPENSE: DOES NOT REFLECT THE EFFECT OF CONTRACTUAL FEE WAIVER. GROWTH OF $10,000 for periods ended 9/30/07 - -------------------------------------------------------------------------------- [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA USED IN PRINTED GRAPHIC AS FOLLOWS: Phoenix Real Phoenix Real Fund Estate Securities Estate Securities Composite S&P 500(R) Fund Class A Fund Class B Index Index 9/30/97 9,425 10,000 10,000 10,000 9/30/98 7,775 8,183 8,646 10,915 9/30/99 7,576 7,917 8,088 13,942 9/29/00 10,114 10,494 9,754 15,805 9/28/01 10,863 11,183 10,979 11,596 9/30/02 12,205 12,472 11,917 9,221 9/30/03 15,336 15,553 14,923 11,473 9/30/04 19,444 19,571 18,738 13,064 9/30/05 24,801 24,783 23,849 14,663 9/29/06 32,228 31,954 29,877 16,246 9/28/07 33,682 33,154 31,573 18,917 For information regarding the indexes, see the glossary section on page 2. 8 PHOENIX REAL ESTATE SECURITIES FUND SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2007 VALUE SHARES (000) ------------ ------------ DOMESTIC COMMON STOCKS--97.2% REAL ESTATE INVESTMENT TRUSTS--97.2% DIVERSIFIED--4.5% Vornado Realty Trust 541,447 $ 59,207 - -------------------------------------------------------------------------------- TOTAL DIVERSIFIED 59,207 - -------------------------------------------------------------------------------- HEALTH CARE--7.4% HCP, Inc. 975,580 32,360 Health Care REIT, Inc. 449,240 19,874 Ventas, Inc. 1,092,649 45,236 - -------------------------------------------------------------------------------- TOTAL HEALTH CARE 97,470 - -------------------------------------------------------------------------------- INDUSTRIAL/OFFICE--29.7% INDUSTRIAL--8.7% AMB Property Corp. 454,389 27,177 DCT Industrial Trust, Inc. 502,204 5,258 Prologis 1,248,117 82,813 ------------ 115,248 ------------ MIXED--1.9% Duke Realty Corp. 649,700 21,967 PS Business Parks, Inc. 59,883 3,404 ------------ 25,371 ------------ OFFICE--15.4% Alexandria Real Estate Equities, Inc. 512,409 49,324 Boston Properties, Inc. 466,573 48,477 Corporate Office Properties Trust 1,096,694 45,655 Douglas Emmett, Inc. 150,470 3,721 Kilroy Realty Corp. 134,237 8,139 SL Green Realty Corp. 405,788 47,384 ------------ 202,700 ------------ SPECIALTY--3.7% Digital Realty Trust, Inc. 1,233,323 48,580 - -------------------------------------------------------------------------------- TOTAL INDUSTRIAL/OFFICE 391,899 - -------------------------------------------------------------------------------- VALUE SHARES (000) ------------ ------------ REAL ESTATE INVESTMENT TRUSTS--(CONTINUED) LODGING/RESORTS--8.1% DiamondRock Hospitality Co. 946,305 $ 16,475 Host Hotels & Resorts, Inc. 2,512,545 56,382 LaSalle Hotel Properties 442,986 18,641 Sunstone Hotel Investors, Inc. 597,907 15,330 - -------------------------------------------------------------------------------- TOTAL LODGING/RESORTS 106,828 - -------------------------------------------------------------------------------- RESIDENTIAL--12.9% APARTMENTS--12.9% Archstone-Smith Trust 179,270 10,781 AvalonBay Communities, Inc. 359,106 42,396 BRE Properties, Inc. 304,310 17,020 Equity Residential 1,036,699 43,915 Essex Property Trust, Inc. 328,102 38,575 UDR, Inc. 734,409 17,861 - -------------------------------------------------------------------------------- TOTAL RESIDENTIAL 170,548 - -------------------------------------------------------------------------------- RETAIL--30.0% REGIONAL MALLS--16.0% General Growth Properties, Inc. 1,006,889 53,989 Macerich Co. (The) 545,095 47,739 Simon Property Group, Inc. 1,097,225 109,723 ------------ 211,451 ------------ SHOPPING CENTERS--14.0% Developers Diversified Realty Corp. 814,400 45,501 Federal Realty Investment Trust 294,800 26,119 Kimco Realty Corp. 1,169,682 52,881 See Notes to Financial Statements 9 PHOENIX REAL ESTATE SECURITIES FUND VALUE SHARES (000) ------------ ------------ REAL ESTATE INVESTMENT TRUSTS--(CONTINUED) SHOPPING CENTERS--(CONTINUED) Regency Centers Corp. 519,381 $ 39,863 Tanger Factory Outlet Centers, Inc. 514,430 20,881 ------------ 185,245 - -------------------------------------------------------------------------------- TOTAL RETAIL 396,696 - -------------------------------------------------------------------------------- SELF STORAGE--4.6% Extra Space Storage, Inc. 1,389,087 21,378 Public Storage, Inc. 497,453 39,125 - -------------------------------------------------------------------------------- TOTAL SELF STORAGE 60,503 - -------------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $895,749) 1,283,151 - -------------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--97.2% (IDENTIFIED COST $895,749) 1,283,151 - -------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS--2.4% FEDERAL AGENCY SECURITIES(b)--2.4% PAR VALUE (000) ------------ FFCB 4.550% due 10/2/07 $ 3,300 3,300 4.588% due 10/17/07 3,034 3,028 PAR VALUE VALUE (000) (000) ------------ ------------ SHORT-TERM INVESTMENTS--(CONTINUED) FHLB 4.000% due 10/1/07 $ 5,000 $ 5,000 4.050% due 10/2/07 2,400 2,400 4.570% due 10/2/07 3,000 3,000 4.550% due 10/4/07 2,385 2,384 4.570% due 10/11/07 2,705 2,701 4.590% due 10/15/07 2,185 2,181 4.600% due 10/19/07 2,020 2,015 FNMA 4.614% due 10/9/07 5,000 4,995 - -------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $31,004) 31,004 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS--99.6% (IDENTIFIED COST $926,753) 1,314,155(a) Other assets and liabilities, net--0.4% 5,940 ------------ NET ASSETS--100.0% $ 1,320,095 ============ (a) Federal Income Tax Information (reported in 000's): Net unrealized appreciation of investment securities is comprised of gross appreciation of $393,579 and gross depreciation of $7,787 for federal income tax purposes. At September 30, 2007, the aggregate cost of securities for federal income tax purposes was $928,363. (b) The rate shown is the discount rate. See Notes to Financial Statements 10 PHOENIX REAL ESTATE SECURITIES FUND STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 2007 (Reported in thousands except per share amounts) ASSETS Investment securities at value+ ........................... $1,314,155 Cash ...................................................... 18 Receivables Investment securities sold ............................. 9,056 Dividends .............................................. 4,412 Fund shares sold ....................................... 3,622 Prepaid expenses .......................................... 120 Other Assets .............................................. 209 ---------- Total assets ......................................... 1,331,592 ---------- LIABILITIES Payables Fund shares repurchased ................................ 4,555 Investment securities purchased ........................ 4,624 Investment advisory fee ................................ 814 Transfer agent fee ..................................... 593 Distribution and service fees .......................... 349 Administration fee ..................................... 92 Professional fee ....................................... 30 Trustees' fee .......................................... 10 Trustee deferred compensation plan ..................... 209 Other accrued expenses ................................. 221 ---------- Total liabilities .................................... 11,497 ---------- NET ASSETS ................................................ $1,320,095 ========== NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest .......... $ 901,914 Undistributed net investment income ....................... 461 Accumulated net realized gain ............................. 30,318 Net unrealized appreciation ............................... 387,402 ---------- NET ASSETS ................................................ $1,320,095 ========== CLASS I Net asset value, offering price, and redemption price per share (net assets/shares outstanding) ......... $34.08 Shares of beneficial interest outstanding, no par value, unlimited authorization ...................... 965 Net Assets ................................................ $ 32,887 CLASS A Net asset value per share (net assets/shares outstanding) . $34.10 Offering price per share $34.10/(1-5.75%) ................. $36.18 Shares of beneficial interest outstanding, no par value, unlimited authorization ................................. 33,342 Net Assets ................................................ $1,136,923 CLASS B Net asset value (net assets/shares outstanding) and offering price per share ................................ $33.72 Shares of beneficial interest outstanding, no par value, unlimited authorization ................................. 1,482 Net Assets ................................................ $ 49,964 CLASS C Net asset value (net assets/shares outstanding) and offering price per share ................................ $34.07 Shares of beneficial interest outstanding, no par value, unlimited authorization .......................... 2,944 Net Assets ................................................ $ 100,321 + Investment in securities at cost ...................... $ 926,753 See Notes to Financial Statements 11 PHOENIX REAL ESTATE SECURITIES FUND STATEMENT OF OPERATIONS (Reported in thousands) 12/1/06 - 12/1/05 - 9/30/07 11/30/06 ----------- ----------- INVESTMENT INCOME Dividends....................................... $ 28,389 $ 22,832 Interest........................................ 1,318 1,673 --------- --------- Total investment income.................... 29,707 24,505 --------- --------- EXPENSES Investment advisory fee......................... 9,147 8,121 Service fees, Class A........................... 2,717 2,356 Distribution and service fees, Class B.......... 525 634 Distribution and service fees, Class C.......... 950 843 Financial agent fee.............................. -- 328 Administration fee.............................. 1,054 450 Transfer agent.................................. 2,999 1,668 Printing......................................... 500 522 Registration.................................... 133 73 Custodian........................................ 113 98 Trustees........................................ 110 79 Professional..................................... 64 43 Miscellaneous................................... 153 117 --------- --------- Total expenses............................. 18,465 15,332 Less expenses reimbursed by investment adviser.. (900) -- Custodian fees paid indirectly................... (12) (2) --------- --------- Net expenses............................... 17,553 15,330 --------- --------- NET INVESTMENT INCOME (LOSS).................... 12,154 9,175 --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments......... 30,649 58,061 Net change in unrealized appreciation (depreciation)on investments ................. (155,029) 315,898 --------- --------- NET GAIN (LOSS) ON INVESTMENTS.................. (124,380) 373,959 --------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .............................. $(112,226) $ 383,134 ========= ========= See Notes to Financial Statements 12 PHOENIX REAL ESTATE SECURITIES FUND STATEMENT OF CHANGES IN NET ASSETS
(Reported in thousands) 12/1/06 - 12/1/05 - 12/1/04 - 9/30/07 11/30/06 11/30/05 ---------- ---------- -------- FROM OPERATIONS Net investment income (loss)............... $ 12,154 $ 9,175 $ 11,719 Net realized gain (loss)................... 30,649 58,061 19,167 Net change in unrealized appreciation (depreciation) ......................... (155,029) 315,898 99,739 ---------- ---------- -------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.......................... (112,226) 383,134 130,625 ---------- ---------- -------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class I............. (166) -- -- Net investment income, Class A............. (11,397) (10,315) (9,881) Net investment income, Class B............. (120) (310) (507) Net investment income, Class C............. (203) (359) (439) Net realized short-term gains, Class I .... (6) -- -- Net realized short-term gains, Class A .... (9,631) (446) (2,379) Net realized short-term gains, Class B .... (525) (36) (261) Net realized short-term gains, Class C .... (844) (41) (183) Net realized long-term gains, Class I ..... -- -- -- Net realized long-term gains, Class A ..... (41,285) (15,981) (27,309) Net realized long-term gains, Class B ..... (2,269) (1,290) (2,995) Net realized long-term gains, Class C ..... (3,617) (1,469) (2,100) ---------- ---------- -------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS......................... (70,063) (30,247) (46,054) ---------- ---------- -------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class I .................. 33,030 -- -- Change in net assets from share transactions, Class A .................. 8,577 245,360 154,444 Change in net assets from share transactions, Class B .................. (13,672) (7,487) (4,420) Change in net assets from share transactions, Class C .................. 1,408 17,731 22,652 ---------- ---------- -------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS....................... 29,343 255,604 172,676 ---------- ---------- -------- NET INCREASE (DECREASE) IN NET ASSETS ..... (152,946) 608,491 257,247 NET ASSETS Beginning of period........................ 1,473,041 864,550 607,303 ---------- ---------- -------- END OF PERIOD.............................. $1,320,095 $1,473,041 $864,550 ========== ========== ======== Undistributed net investment income ....... $461 $124 $1,888
See Notes to Financial Statements 13 PHOENIX REAL ESTATE SECURITIES FUND FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
NET NET ASSET NET REALIZED TOTAL DIVIDENDS DISTRIBUTIONS VALUE, INVESTMENT AND FROM FROM NET FROM NET BEGINNING INCOME UNREALIZED INVESTMENT INVESTMENT REALIZED OF PERIOD (LOSS)(2) GAIN (LOSS) OPERATIONS INCOME GAINS - ----------------------------------------------------------------------------------------------------------------- CLASS I 12/29/06(5) to 9/30/07 $35.99 0.28 (1.87) (1.59) (0.31) (0.01) CLASS A 12/1/06 to 9/30/07 $38.18 0.32 (2.59) (2.27) (0.32) (1.49) 12/1/05 to 11/30/06 28.15 0.30 10.73 11.03 (0.37) (0.63) 12/1/04 to 11/30/05 25.46 0.43 4.08 4.51 (0.42) (1.40) 12/1/03 to 11/30/04 20.09 0.44 5.60 6.04 (0.50) (0.17) 12/1/02 to 11/30/03 15.59 0.62 4.62 5.24 (0.62) (0.12) 12/1/01 to 11/30/02 15.23 0.69 1.04 1.73 (0.68) (0.69) CLASS B 12/1/06 to 9/30/07 $37.74 0.10 (2.56) (2.46) (0.07) (1.49) 12/1/05 to 11/30/06 27.86 0.07 10.59 10.66 (0.15) (0.63) 12/1/04 to 11/30/05 25.21 0.23 4.05 4.28 (0.23) (1.40) 12/1/03 to 11/30/04 19.91 0.27 5.54 5.81 (0.34) (0.17) 12/1/02 to 11/30/03 15.46 0.48 4.59 5.07 (0.50) (0.12) 12/1/01 to 11/30/02 15.11 0.57 1.03 1.60 (0.56) (0.69) CLASS C 12/1/06 to 9/30/07 $38.11 0.10 (2.59) (2.49) (0.06) (1.49) 12/1/05 to 11/30/06 28.12 0.06 10.71 10.77 (0.15) (0.63) 12/1/04 to 11/30/05 25.43 0.25 4.07 4.32 (0.23) (1.40) 12/1/03 to 11/30/04 20.07 0.26 5.61 5.87 (0.34) (0.17) 7/25/03(5) to 11/30/03 17.90 0.19 2.13 2.32 (0.15) --
(1) Sales charges, where applicable, are not reflected in the total return calculation. (2) Computed using average shares outstanding. (3) Annualized. (4) Not annualized. (5) Inception date of the Class. See Notes to Financial Statements 14 PHOENIX REAL ESTATE SECURITIES FUND FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD(CONCLUDED)
RATIO OF NET RATIO OF RATIO OF NET NET OPERATING GROSS NET CHANGE ASSET ASSETS, EXPENSES TO OPERATING INVESTMENT IN NET VALUE, END OF AVERAGE EXPENSES TO INCOME TO TOTAL ASSET END OF TOTAL PERIOD NET AVERAGE AVERAGE NET PORTFOLIO DISTRIBUTIONS VALUE PERIOD RETURN(1) (000'S) ASSETS NET ASSETS ASSETS TURNOVER - ------------------------------------------------------------------------------------------------------------------------------------ CLASS I 12/29/06(5) to 9/30/07 (0.32) (1.91) $34.08 (4.44)%(4) $ 32,887 1.11%(3) 1.23%(3) 1.09%(3) 25%(4) CLASS A 12/1/06 to 9/30/07 (1.81) (4.08) $34.10 (6.14)%(4) $1,136,923 1.32%(3) 1.39%(3) 1.06%(3) 25%(4) 12/1/05 to 11/30/06 (1.00) 10.03 38.18 40.37 1,289,007 1.30 1.30 0.94 24 12/1/04 to 11/30/05 (1.82) 2.69 28.15 18.67 737,744 1.30 1.30 1.68 22 12/1/03 to 11/30/04 (0.67) 5.37 25.46 30.68 511,107 1.28 1.28 1.98 28 12/1/02 to 11/30/03 (0.74) 4.50 20.09 34.81 260,615 1.30 1.34 3.52 16 12/1/01 to 11/30/02 (1.37) 0.36 15.59 12.05 51,440 1.30 1.61 4.48 14 CLASS B 12/1/06 to 9/30/07 (1.56) (4.02) $33.72 (6.72)%(4) $ 49,964 2.07%(3) 2.13%(3) 0.32%(3) 25%(4) 12/1/05 to 11/30/06 (0.78) 9.88 37.74 39.29 71,240 2.05 2.05 0.24 24 12/1/04 to 11/30/05 (1.63) 2.65 27.86 17.81 59,042 2.05 2.05 0.93 22 12/1/03 to 11/30/04 (0.51) 5.30 25.21 29.74 57,797 2.03 2.03 1.25 28 12/1/02 to 11/30/03 (0.62) 4.45 19.91 33.76 39,299 2.05 2.09 2.79 16 12/1/01 to 11/30/02 (1.25) 0.35 15.46 11.23 17,984 2.05 2.37 3.70 14 CLASS C 12/1/06 to 9/30/07 (1.55) (4.04) $34.07 (6.71)%(4) $ 100,321 2.07%(3) 2.14%(3) 0.32%(3) 25%(4) 12/1/05 to 11/30/06 (0.78) 9.99 38.11 39.32 112,794 2.05 2.05 0.19 24 12/1/04 to 11/30/05 (1.63) 2.69 28.12 17.80 67,764 2.05 2.05 0.97 22 12/1/03 to 11/30/04 (0.51) 5.36 25.43 29.78 38,399 2.03 2.03 1.17 28 7/25/03(5) to 11/30/03 (0.15) 2.17 20.07 13.03(4) 4,785 2.05(3) 2.07(3) 2.88(3) 16(4)
See Notes to Financial Statements 15 PHOENIX REAL ESTATE SECURITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 1. ORGANIZATION Phoenix Opportunities Trust (the "Trust") is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. As a result of a consolidation of several Phoenix trusts, the Trust acquired a number of Phoenix Funds effective June 27, 2007 and September 24, 2007, including Phoenix Real Estate Securities Fund (the "Fund"). All the acquired funds' year ends were changed to correspond with the Trust's September 30th year end. As of the date of this report, nineteen funds are offered for sale, of which the Fund is reported in this annual report. The Fund's investment objective is outlined in the fund summary page. The Fund offers Class I shares, Class A shares, Class B shares and Class C shares for sale. Class I shares are sold without a sales charge. Class A shares are sold with a front-end sales charge of up to 5.75%. Generally, Class A shares are not subject to any charges when redeemed; however, a 1% contingent deferred sales charge may be imposed on certain redemptions within one year on purchases on which a finder's fee has been paid. Class B shares are generally 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 generally sold with a 1% contingent deferred sales charge if redeemed within one year of purchase. Each class of shares has identical voting, dividend, liquidation and other rights and the same terms and conditions, except that each class bears different distribution and/or service expenses and has exclusive voting rights with respect to its distribution plan. Class I bears no distribution and/or service expenses. Income and other expenses and realized and unrealized gains and losses of the Fund are borne pro rata by the holders of each class of shares. 2. SIGNIFICANT ACCOUNTING POLICIES 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 and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. A. SECURITY VALUATION: Equity securities are valued at the official closing price (typically last sale) on the exchange on which the securities are primarily traded, or if no closing price is available, 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. As required, some securities and assets may be valued at fair value as determined in good faith by or under the direction of the Trustees. 16 PHOENIX REAL ESTATE SECURITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) Short-term investments having a remaining maturity of 60 days or less are valued at amortized cost, which approximates market. In September 2006, Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("SFAS 157"), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures. 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 Fund amortizes premiums and accretes discounts using the effective interest method. Realized gains and losses are determined on the identified cost basis. C. INCOME TAXES: The Fund is treated as a separate taxable entity. It is the policy of each Fund in the Trust to comply with the requirements of the Internal Revenue Code and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes or excise taxes has been made. The Fund may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable based upon current interpretations of the tax rules and regulations that exist in the markets in which it invests. In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation 48 ("FIN 48"), "Accounting for Uncertainty in Income Taxes." This standard defines the threshold for recognizing the benefits of tax-return positions in the financial statements as "more-likely-than-not" to be sustained by the taxing authority and requires measurement of a tax position meeting the more-likely-than-not criterion, based on the largest benefit that is more than 50 percent likely to be realized. Management has analyzed the Funds' tax positions taken on federal income tax returns for all open tax years (tax years ended December 31, 2003 - 2006) for purposes of implementing FIN 48, and has concluded that no provision for income tax is required in the Funds' financial statements. D. DISTRIBUTIONS TO SHAREHOLDERS: Distributions are recorded by the Fund on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences may include the treatment of non-taxable dividends, market premium and discount, non-deductible expenses, expiring capital loss carryovers, foreign currency gain or loss, gain or loss on futures contracts, partnerships, operating losses and losses deferred due to wash sales. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital paid in on shares of beneficial interest. 17 PHOENIX REAL ESTATE SECURITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) E. EXPENSES: Expenses incurred by the Trust with respect to more than one Fund are allocated in proportion to the net assets of each Fund, except where allocation of direct expense to each Fund or an alternative allocation method can be more appropriately made. F. REIT INVESTMENTS: Dividend income is recorded using management's estimate of the income included in distributions received from the REIT investments. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts. 3. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS Phoenix Investment Counsel, Inc. ("PIC") (the "Adviser") is the Adviser to the Fund. As compensation for its services to the Fund, PIC, an indirect wholly-owned subsidiary of The Phoenix Companies, Inc. ("PNX"), is entitled to a fee based upon the following annual rates as a percentage of the average daily net assets of the Fund. 1ST $1+ BILLION $2+ $1 BILLION THROUGH $2 BILLION BILLION ------------- -------------------- ------------ 0.75% 0.70% 0.65% Duff & Phelps Investment Management Co. ("Duff & Phelps") is the subadviser to the Fund. Duff & Phelps is an indirect, wholly-owned subsidiary of PNX. The Adviser has contractually agreed to limit the Fund's operating expenses (excluding interest, taxes, and extraordinary expenses) through March 31, 2008 so that such expenses do not exceed 1.05% for Class I Shares, 1.30% for Class A Shares, 2.05% for Class B Shares and 2.05% for Class C Shares. Effective August 23, 2007, the Adviser may recapture operating expenses waived or reimbursed under this arrangement, within three fiscal years following the end of the fiscal year in which such waiver or reimbursement occurred. The Fund must pay its ordinary operating expenses before the Adviser is entitled to any reimbursement and must remain in compliance with applicable expense limitations. All or a portion of reimbursed expenses in the amount of $251 (reported in 000's) may be recaptured by the fiscal year ended 2010. As distributor of the Fund's shares, Phoenix Equity Planning Corporation ("PEPCO"), an indirect wholly-owned subsidiary of PNX, has advised the Fund that it retained net selling commissions and deferred sales charges for the fiscal period(1) (the "period") ended September 30, 2007, as follows (reported in 000's): CLASS A CLASS B CLASS C NET SELLING DEFERRED DEFERRED COMMISSIONS SALES CHARGES SALES CHARGES -------------------- ------------------ --------------- $133 $167 $48 (1) The fiscal period for the Fund is December 1, 2006 through September 30, 2007. 18 PHOENIX REAL ESTATE SECURITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) The Fund pays PEPCO distribution and/or service fees at the following annual rates as a percentage of the average daily net assets of each respective class: CLASS A CLASS B CLASS C ------------- ------------- ------------- 0.25% 1.00% 1.00% There are no distribution and/or service fees for Class I. Under certain circumstances, shares of certain Phoenix Funds may be exchanged for shares of the same class of certain other Phoenix Funds on the basis of the relative net asset values per share at the time of the exchange. On exchanges with share classes that carry a contingent deferred sales charge, the CDSC schedule of the original shares purchased continues to apply. PEPCO serves as the administrator to the Fund. For its services, which includes financial agent services, PEPCO receives an administrative fee at an annual rate of 0.09% of the first $5 billion, 0.08% on the next $10 billion, and 0.07% over $15 billion of the average net assets across all non-money market funds in the Phoenix Funds and The Phoenix Edge Series Fund. For the period ended September 30, 2007, the Fund incurred administration fees totaling $1,054 (reported in 000's). PEPCO serves as the Fund's transfer agent with Boston Financial Data Services, Inc. serving as sub-transfer agent. For the period ended September 30, 2007, transfer agent fees were $2,999 (reported in 000's) as reported in the Statement of Operations. At September 30, 2007, PNX and its affiliates and Phoenix affiliated Funds held shares which aggregated the following (reported in 000's): AGGREGATE NET ASSET SHARES VALUE -------------- ------------- Real Estate Securities Fund, Class A 1,259 $42,964 Until March 1, 2007, the Trust provided a deferred compensation plan to its trustees who were not officers of PNX. Under the deferred compensation plan, trustees were able to elect to defer all or a portion of their compensation. Amounts deferred were retained by the Fund, and to the extent permitted by the 1940 Act, as amended, could have been invested in the shares of those funds selected by the trustees. Investments in such funds are included in "Other assets" on the Statements of Assets and Liabilities at September 30, 2007. 4. PURCHASES AND SALES OF SECURITIES Purchases and sales of investment securities for the Fund (excluding U.S. Government securities or agency securities and short-term securities) during the period ended September 30, 2007, were as follows: LONG-TERM (REPORTED IN 000'S) ------------------------------- PURCHASES SALES ------------------------------- $424,203 $366,425 There were no purchases or sales of long-term U.S. Government or agency securities. 19 PHOENIX REAL ESTATE SECURITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) 5. CAPITAL SHARES Transactions (reported in 000's) in shares of capital stock, for the periods ended as indicated, were as follows:
----------------------- ---------------------- --------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- ------- -------- --------- -------- - ---------------------------- ----------------------- ---------------------- --------------------- REAL ESTATE 12/1/06(1) - 12/1/05 - 12/1/04 SECURITIES FUND 9/30/07 11/30/06 11/30/05 - ---------------------------- ----------------------- ----------------------- --------------------- CLASS I Shares sold 1,059 $ 36,256 -- $ -- -- $ -- Reinvestment of distributions 4 140 -- -- -- -- Redemptions (98) (3,366) -- -- -- -- -------- --------- ------- --------- ------- --------- Net increase / (decrease) 965 $ 33,030 -- $ -- -- $ -- ======== ========= ======= ========= ======= ========= CLASS A Shares sold 14,072 $ 511,268 16,009 $ 514,058 15,369 $ 390,796 Reinvestment of distributions 1,620 57,889 785 22,530 1,263 31,805 Redemptions (16,115) (560,580) (9,234) (291,228) (10,499) (268,157) -------- --------- ------- --------- ------- --------- Net increase / (decrease) (423) $ 8,577 7,560 $ 245,360 6,133 $ 154,444 ======== ========= ======= ========= ======= ========= CLASS B Shares sold 156 $ 5,740 265 $ 8,295 456 $ 11,392 Reinvestment of distributions 76 2,681 43 1,193 105 2,621 Redemptions (637) (22,093) (540) (16,975) (734) (18,433) -------- --------- ------- --------- ------- --------- Net increase / (decrease) (405) $ (13,672) (232) $ (7,487) (173) $ (4,420) ======== ========= ======= ========= ======= ========= CLASS C Shares sold 928 $ 34,094 1,101 $ 35,276 1,187 $ 30,053 Reinvestment of distributions 124 4,416 51 1,431 80 2,019 Redemptions (1,067) (37,102) (603) (18,976) (367) (9,420) -------- --------- ------- --------- ------- --------- Net increase / (decrease) (15) $ 1,408 549 $ 17,731 900 $ 22,652 ======== ========= ======= ========= ======= =========
(1) Inception date for Class I - 12/29/06. 6. 10% SHAREHOLDERS As of September 30, 2007, the Fund had individual shareholder accounts and/or omnibus shareholder accounts (which are comprised of a group of individual shareholders), which individually amounted to more than 10% of the total shares outstanding of the fund as detailed below. The shareholders are not affiliated with PNX. % OF NUMBER SHARES OF OUTSTANDING ACCOUNTS -------------- ----------- 13% 1 20 PHOENIX REAL ESTATE SECURITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) 7. CREDIT RISK AND ASSET CONCENTRATIONS The Fund may invest a high percentage of its assets in specific sectors of the market in its pursuit of a greater investment return. Fluctuations in these sectors of concentration may have a greater impact on the Fund, positive or negative, than if the Fund did not concentrate its investments in such sectors. 8. INDEMNIFICATIONS Under the Fund's organizational documents, its trustees and officers are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, the Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these arrangements. 9. REGULATORY EXAMS Federal and state regulatory authorities from time to time make inquiries and conduct examinations regarding compliance by The Phoenix Companies, Inc. and its subsidiaries (collectively "the Company") with securities and other laws and regulations affecting their registered products. During 2004 and 2005, the Boston District Office of the Securities and Exchange Commission ("SEC") conducted an examination of the Company's investment company and investment adviser affiliates. Following the examination, the staff of the SEC Boston District Office issued a deficiency letter noting perceived weaknesses in procedures for monitoring trading to prevent market timing activity prior to 2004. The staff requested the Company to conduct an analysis as to whether shareholders, policyholders and contract holders who invested in the funds that may have been affected by undetected market timing activity had suffered harm and to advise the staff whether the Company believes reimbursement is necessary or appropriate under the circumstances. Market timing is an investment technique involving frequent short-term trading of mutual fund shares that is designed to exploit market movements or inefficiencies in the way mutual fund companies price their shares. A third party was retained to assist the Company in preparing the analysis. In 2005, based on the third party analysis the Company notified the staff at the SEC Boston District Office that reimbursements were not appropriate under the circumstances. In February 2005, the NASD notified PNX that it was asserting violations of trade reporting rules by a subsidiary. PNX responded to the NASD allegations in May 2005. Thereafter, in January 2007, the NASD notified PNX that the matter was referred for potential violations and possible action. On May 3, 2007, the NASD accepted a letter of acceptance, waiver and consent submitted by the PXP subsidiary to resolve this matter. Without admitting or denying the NASD's findings, in accordance with the terms of the letter the PXP subsidiary agreed to a censure, to pay a fine of $8,000 and to revise its supervisory procedures. The Company does not believe that the outcome of this matter will be material to these financial statements. 21 PHOENIX REAL ESTATE SECURITIES FUND NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (CONTINUED) 10. FEDERAL INCOME TAX INFORMATION The components of distributable earnings on a tax basis (excluding unrealized appreciation (depreciation) which is disclosed in the Schedules of Investments) consist of undistributed ordinary income of $469 (reported in 000's) and undistributed long-term capital gains of $31,927 (reported in 000's). The differences between the book and tax basis components of distributable earnings relate principally to the timing of recognition of income and gains for federal income tax purposes. Short-term gain distributions reported in the Statements of Changes in Net Assets, if any, are reported as ordinary income for federal tax purposes. 11. RECLASSIFICATION OF CAPITAL ACCOUNTS For financial reporting purposes, book basis capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Permanent reclassifications can arise from differing treatment of certain income and gain transactions, nondeductible current year net operating losses, expiring capital loss carryovers and investments in passive foreign investment companies. The reclassifications have no impact on the net assets or net asset value of the Funds. As of September 30, 2007, the Fund recorded reclassifications to increase (decrease) the accounts as listed below (reported in 000's): CAPITAL PAID IN ON SHARES OF ACCUMULATED UNDISTRIBUTED BENEFICIAL NET REALIZED NET INVESTMENT INTEREST GAIN (LOSS) INCOME (LOSS) --------------- -------------- ---------------- $(68) $(1) $69 - -------------------------------------------------------------------------------- TAX INFORMATION NOTICE(UNAUDITED) For the fiscal year ended September 30, 2007, the Fund designated $32,078 (reported in 000's) as long-term capital gain dividends. - -------------------------------------------------------------------------------- 22 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM [LOGO OMITTED] PRICEWATERHOUSECOOPERS To the Board of Trustees of Phoenix Opportunities Trust and Shareholders of Phoenix Real Estate Securities Fund In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations, changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Phoenix Real Estate Securities Fund (formerly a series of Phoenix Multi-Portfolio Fund and now a series of Phoenix Opportunities Trust, hereafter referred to as the "Trust") at September 30, 2007, the results of its operations for the period December 1, 2006 to September 30, 2007 and for the year ended November 30, 2006, the changes in its net assets for the period December 1, 2006 to September 30, 2007 and for each of the two years in the period ended November 30, 2006 and the financial highlights for the period December 1, 2006 to September 30, 2007 and for each of the five years in the period ended November 30, 2006, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. /s/ PricewaterhouseCoopers LLP - --------------------------------- Boston, Massachusetts November 20, 2007 23 BOARD OF TRUSTEES' CONSIDERATION OF INVESTMENT ADVISORY AND SUBADVISORY AGREEMENTS PHOENIX OPPORTUNITIES TRUST SEPTEMBER 30, 2007 (Unaudited) BOARD OF TRUSTEES' CONSIDERATION OF INVESTMENT ADVISORY AND SUBADVISORY AGREEMENTS FOR PHOENIX CA TAX-EXEMPT BOND FUND, PHOENIX CORE BOND FUND, PHOENIX DIVERSIFIER PHOLIO, PHOENIX EMERGING MARKETS BOND FUND, PHOENIX FOREIGN OPPORTUNITIES FUND, PHOENIX GLOBAL UTILITIES FUND, PHOENIX HIGH YIELD FUND, PHOENIX INTERNATIONAL STRATEGIES FUND, PHOENIX MARKET NEUTRAL FUND, PHOENIX MONEY MARKET FUND, PHOENIX MULTI-SECTOR FIXED INCOME FUND, PHOENIX MULTI-SECTOR SHORT TERM BOND FUND, PHOENIX REAL ESTATE SECURITIES FUND, PHOENIX WEALTH ACCUMULATOR PHOLIO, PHOENIX WEALTH BUILDER PHOLIO, PHOENIX WEALTH GUARDIAN PHOLIO AND PHOENIX WORLDWIDE STRATEGIES FUND (EACH, A "FUND") Each of the above-referenced Funds is the result of a reorganization with an identical counterpart fund from a different Phoenix Fund trust. The reorganizations were conducted to relocate the funds from other Phoenix Fund trusts into the Phoenix Opportunities Trust. Although newly formed, the above-referenced Funds have taken on all attributes of each identical counterpart including all aspects of the previously approved advisory and subadvisory agreements for which Board of Trustee considerations were previously reported in the appropriate shareholder report. 24 RESULTS OF SHAREHOLDER MEETING PHOENIX OPPORTUNITIES TRUST OCTOBER 31, 2006 (Unaudited) At a special meeting of shareholders of Phoenix Opportunities Trust (the "Trust") held on October 31, 2006, shareholders voted on the following proposals: NUMBER OF ELIGIBLE UNITS VOTED: FOR AGAINST -------- ---------- To elect eleven Trustees to serve on the Board of Trustees until the next meeting of shareholders at which Trustees are elected. E. Virgil Conway................ 121,064,647 625,812 Harry Dalzell-Payne ............ 121,064,647 625,812 Daniel T. Geraci ............... 121,051,683 638,777 Francis E. Jeffries ............ 121,064,647 625,812 Leroy Keith, Jr. ............... 121,064,647 625,812 Marilyn E. LaMarche ............ 121,063,658 626,802 Philip R. McLoughlin ........... 121,064,647 625,812 Geraldine M. McNamara .......... 121,063,658 626,802 James M. Oates ................. 121,064,647 625,812 Richard E. Segerson ............ 121,064,647 625,812 Ferdinand L.J. Verdonck ........ 121,064,647 625,812 FOR AGAINST ABSTAIN -------- ---------- --------- To ratify the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the Trusts. .................... 120,692,791 177,364 820,305 25 RESULTS OF SHAREHOLDER MEETING PHOENIX OPPORTUNITIES TRUST NOVEMBER 21, 2006 (UNAUDITED) At a special meeting of shareholders of Phoenix Real Estate Securities Fund (the "Fund"), a series of Phoenix Opportunities Trust (the "Trust") held on November 21, 2006, shareholders voted on the following proposals:
NUMBER OF ELIGIBLE UNITS VOTED: BROKER FOR AGAINST ABSTAIN NON-VOTES ---------- ---------- -------- ----------- To permit PIC to hire and replace subadvisers or to modify subadvisory agreements without shareholder approval ....... 12,002,345 740,722 299,828 5,946,651 Amendment of fundamental restrictions of the Funds with respect to loans .............. 11,905,288 796,266 341,341 5,946,651 To reclassify the investment objective of the Investment Objective Funds from fundamental to non-fundamental ..... 11,446,743 974,502 621,650 5,946,651
Shareholders of Phoenix Real Estate Securities Fund did NOT approve these proposals. 26 FUND MANAGEMENT TABLES (UNAUDITED) Information pertaining to the Trustees and officers of the Trust as of September 30, 2007 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 - -------------------------------------------------------------------------------- NAME YEAR OF BIRTH YEAR ELECTED PRINCIPAL OCCUPATION(S) # OF FUNDS IN FUND COMPLEX DURING PAST 5 YEARS AND OVERSEEN BY TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE - -------------------------------------------------------------------------------- E. Virgil Conway Chairman, Rittenhouse Advisors, LLC (consulting YOB: 1929 firm) (2001-present). Trustee/Director, Phoenix Elected: 2000 Funds Family (1983-present), Director, Urstadt 55 Funds Biddle Property Corp. (1989-present), Consolidated Edison Company of New York, Inc. (1970-2002), Union Pacific Corp. (1978-2002), Accuhealth, Inc. (1994-2002). - -------------------------------------------------------------------------------- Harry Dalzell-Payne Retired. Trustee/Director, Phoenix Funds Family YOB: 1929 (1983-present). Elected: 1999 55 Funds - -------------------------------------------------------------------------------- Francis E. Jeffries Director, The Empire District Electric Company YOB: 1930 (1984-2004). Trustee/Director, Phoenix Funds Elected: 2005 Complex (1987-present). 58 Funds - -------------------------------------------------------------------------------- Leroy Keith, Jr. Managing Director, Almanac Capital Management YOB: 1939 (commodities business) (since 2007). Elected: 2005 Director/Trustee, Evergreen Funds (93 portfolios) 55 Funds (1989-present). Trustee, Phoenix Funds Family (1980-present). Director, Lincoln Educational Services Corp. (2002-2004). Partner, Stonington Partners, Inc. (private equity firm) (2001-2007). - -------------------------------------------------------------------------------- Geraldine M. McNamara Retired. Trustee/Director, Phoenix Funds Complex YOB: 1951 (2001-present). Managing Director, U.S. Trust Elected: 2001 Company of New York (private bank) (1982-2006). 57 Funds - -------------------------------------------------------------------------------- James M. Oates Trustee/Director, Phoenix Funds Family YOB: 1946 (1987-present). Managing Director, Wydown Group Elected: 2005 (consulting firm) (1994-present). Director, 55 Funds Investors Bank & Trust Corporation (1995-present), Stifel Financial (1996-present). Independent Chairman (2005-present) and Trustee (2004-present), John Hancock Trust (93 portfolios). Trustee, John Hancock Funds II (74 portfolios) (2005-present). Director/Trustee, Plymouth Rubber Co. (1995-2003). Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services) (1997-2006). Trustee, John Hancock Funds III (8 portfolios) (2005-2006). - -------------------------------------------------------------------------------- 27 FUND MANAGEMENT TABLES (UNAUDITED) (CONTINUED) INDEPENDENT TRUSTEES - -------------------------------------------------------------------------------- NAME YEAR OF BIRTH YEAR ELECTED PRINCIPAL OCCUPATION(S) # OF FUNDS IN FUND COMPLEX DURING PAST 5 YEARS AND OVERSEEN BY TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE - -------------------------------------------------------------------------------- Richard E. Segerson Managing Director, Northway Management Company YOB: 1946 (1998-present). Trustee/Director, Phoenix Funds Elected: 2005 Family (1983-present). 55 Funds - -------------------------------------------------------------------------------- Ferdinand L.J. Verdonck Chairman, Amsterdam Molecular Therapeutics N.V. YOB: 1942 (biotechnology) (since 2007). Director, The JP Elected: 2005 Morgan European Investment Trust (1998-present), 55 Funds Galapagos N.V. (biotechnology) (2005-present). Trustee, Phoenix Funds Family (2004-present). Director, EASDAQ (Chairman) (2001-present), Groupe SNEF (electrical and electronic installation) (1998-present). Managing Director, Almanij N.V. (financial holding company) (1992-2003). Director, KBC Bank and Insurance Holding Company (1992-2003), KBC Bank (1992-2003), KBC Insurance (1992-2003), Kredietbank S.A. Luxembourgeoise (1992-2003), Investco N.V. (private equity company) (1992-2003), Gevaert N.V. (industrial holding company) (1992-2003), Fidea N.V. (insurance company) (1992-2003), Almafin N.V. (real estate investment company) (1992-2003), Centea N.V. (savings bank) (1992-2003), Degussa Antwerpen N.V. (1998-2004), Santens N.V. (textiles) (1999-2004), Dictaphone Corp. (2002-2006), Banco Urquijo (Chairman) (1998-2006). - -------------------------------------------------------------------------------- 28 FUND MANAGEMENT TABLES (UNAUDITED) (CONTINUED) INTERESTED TRUSTEES Each of the individuals listed below is an "interested person" of the Fund, as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended, and the rules and regulations thereunder. - -------------------------------------------------------------------------------- NAME YEAR OF BIRTH YEAR ELECTED PRINCIPAL OCCUPATION(S) # OF FUNDS IN FUND COMPLEX DURING PAST 5 YEARS AND OVERSEEN BY TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE - -------------------------------------------------------------------------------- George R. Aylward(1) Senior Executive Vice President and President, YOB: 1964 Asset Management (since 2007), Senior Vice Elected: 2006 President and Chief Operating Officer, Asset 57 Funds Management (2004-2007), Vice President (2001-2004), The Phoenix Companies, Inc. Director and President (2006-present), Chief Operating Officer (2004-present), Executive Vice President (2004-2006), Vice President, Finance, (2001-2002), Phoenix Investment Partners, Ltd. Various senior officer and directorship positions with Phoenix affiliates. President (2006-present), Executive Vice President (2004-2006), the Phoenix Funds Family. Chairman, President and Chief Executive Officer, The Zweig Fund Inc. and The Zweig Total Return Fund Inc. (2006-present). - -------------------------------------------------------------------------------- Marilyn E. LaMarche(2) Limited Managing Director, Lazard Freres & Co. LLC YOB: 1934 (1997-present). Trustee/Director, Phoenix Funds Elected: 2005 Family (2002-present). Director, The Phoenix 55 Funds Companies, Inc. (2001-2005). - -------------------------------------------------------------------------------- Philip R. McLoughlin(3) Partner, Cross Pond Partners, LLC (2006-Present). YOB: 1946 Director, PXRE Corporation (Reinsurance) Elected: 1999 (1985-present), World Trust Fund (1991-present). 75 Funds Director/Trustee, Phoenix Funds Complex Chairman (1989-present). Management Consultant (2002-2004), Chairman (1997-2002), Chief Executive Officer (1995-2002) and Director (1995-2002), Phoenix Investment Partners, Ltd. Director and Executive Vice President, The Phoenix Companies, Inc. (2000-2002). - -------------------------------------------------------------------------------- (1) Mr. Aylward is an "interested person," as defined in the Investment Company Act of 1940, by reason of his relationship with Phoenix Investment Partners, Ltd. and its affiliates. (2) Ms. LaMarche is an "interested person," as defined in the Investment Company Act of 1940, by reason of her former position as a Director of The Phoenix Companies, Inc. (3) Mr. McLoughlin is an "interested person," as defined in the Investment Company Act of 1940, by reason of his former relationship with Phoenix Investment Partners, Ltd. and its affiliates. 29 FUND MANAGEMENT TABLES (UNAUDITED) (CONTINUED) OFFICERS OF THE TRUST WHO ARE NOT TRUSTEES - -------------------------------------------------------------------------------- POSITION(S) HELD WITH NAME, ADDRESS AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) YEAR OF BIRTH TIME SERVED DURING PAST 5 YEARS - -------------------------------------------------------------------------------- Nancy G. Curtiss Senior Vice President Assistant Treasurer YOB: 1952 since 2006. (2001-present), Vice President, Fund Accounting (1994-2000), Phoenix Equity Planning Corporation. Vice President, Phoenix Investment Partners, Ltd. (2003-present). Senior Vice President, the Phoenix Funds Family (since 2006). Vice President, The Phoenix Edge Series Fund (1994-present), Treasurer, The Zweig Fund Inc. and The Zweig Total Return Fund Inc. (2003-present). Chief Financial Officer (2005-2006) and Treasurer (1994-2006), or Assistant Treasurer (2005-2006), certain funds within the Phoenix Fund Complex. - -------------------------------------------------------------------------------- Francis G. Waltman Senior Vice President Senior Vice President, YOB: 1962 since 2004. Asset Management Product Development of The Phoenix Companies, Inc. (2006-present). Senior Vice President, Asset Management Product Development (2005-present), Senior Vice President and Chief Administrative Officer (2003-2004) of Phoenix Investment Partners, Ltd. Director and President (2006-present) of Phoenix Equity Planning Corporation. Mr. Waltman is also Senior Vice President of Phoenix Investment Counsel, Inc., Director of Duff & Phelps Investment Management Company, Senior Vice President of the Phoenix Funds Family (2004-present). - -------------------------------------------------------------------------------- Marc Baltuch Vice President and Chief Compliance c/o Zweig-DiMenna Chief Compliance Officer Officer, Zweig-DiMenna Associates, LLC since 2004. Associates LLC 900 Third Avenue (1989-present). Vice New York, NY 10022 President and Chief YOB: 1945 Compliance Officer, certain Funds within the Phoenix Funds Complex (2004-present). Vice President, The Zweig Total Return Fund, Inc. (2004-present). Vice President, The Zweig Fund, Inc. (2004-present). President and Director of Watermark Securities, Inc. (1991-present). Assistant Secretary of Gotham Advisors Inc. (1990-present). Secretary, Phoenix-Zweig Trust (1989-2003). Secretary, Phoenix-Euclid Market Neutral Fund (1999-2002). - -------------------------------------------------------------------------------- 30 FUND MANAGEMENT TABLES (UNAUDITED) (CONTINUED) OFFICERS OF THE TRUST WHO ARE NOT TRUSTEES - -------------------------------------------------------------------------------- POSITION(S) HELD WITH NAME, ADDRESS AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) YEAR OF BIRTH TIME SERVED DURING PAST 5 YEARS - -------------------------------------------------------------------------------- W. Patrick Bradley Chief Financial Officer Vice President, Fund YOB: 1972 and Treasurer since 2005. Administration, Phoenix Investment Partners, Ltd. (2004-present). Chief Financial Officer and Treasurer (2006-present) or Chief Financial Officer and Treasurer (2005-present), certain funds within the Phoenix Funds Family. Vice President, Chief Financial Officer, Treasurer and Principal Accounting Officer, The Phoenix Edge Series Fund (2006-present). Assistant Treasurer, certain funds within the Phoenix Fund Complex (2004-2006). Senior Manager (2002-2004), Manager (2000-2002), Audit, Deloitte & Touche, LLP. - -------------------------------------------------------------------------------- Kevin J. Carr Vice President, Vice President and One American Row Chief Legal Officer, Counsel, Phoenix Life Hartford, CT 06102 Counsel and Secretary Insurance Company YOB: 1954 since 2005. (2005-present). Vice President, Counsel, Chief Legal Officer and Secretary, the Phoenix Funds Family (2005-present). Compliance Officer of Investments and Counsel, Travelers Life & Annuity Company (January 2005-May 2005). Assistant General Counsel, The Hartford Financial Services Group (1999-2005). - -------------------------------------------------------------------------------- 31 PHOENIX OPPORTUNITIES TRUST 101 Munson Street Greenfield, MA 01301-9668 TRUSTEES George R. Aylward E. Virgil Conway Harry Dalzell-Payne Francis E. Jeffries Leroy Keith, Jr. Marilyn E. LaMarche Philip R. McLoughlin, Chairman Geraldine M. McNamara James M. Oates Richard E. Segerson Ferdinand L.J. Verdonck OFFICERS George R. Aylward, President Nancy G. Curtiss, Senior Vice President Francis G. Waltman, Senior Vice President Marc Baltuch, Vice President and Chief Compliance Officer W. Patrick Bradley, Chief Financial Officer and Treasurer Kevin J. Carr, Vice President, Chief Legal Officer, Counsel and Secretary INVESTMENT ADVISER Phoenix Investment Counsel, Inc. 56 Prospect Street Hartford, CT 06115-0480 PRINCIPAL UNDERWRITER Phoenix Equity Planning Corporation One American Row Hartford, CT 06103-2899 TRANSFER AGENT Phoenix Equity Planning Corporation One American Row Hartford, CT 06103-2899 CUSTODIAN State Street Bank and Trust Company P.O. Box 5501 Boston, MA 02206-5501 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP 125 High Street Boston, MA 02110-1707 HOW TO CONTACT US Mutual Fund Services 1-800-243-1574 Advisor Consulting Group 1-800-243-4361 Telephone Orders 1-800-367-5877 Text Telephone 1-800-243-1926 Web site PHOENIXFUNDS.COM - -------------------------------------------------------------------------------- IMPORTANT NOTICE TO SHAREHOLDERS The Securities and Exchange Commission has modified mailing regulations for semiannual and annual shareholder fund reports to allow mutual fund companies to send a single copy of these reports to shareholders who share the same mailing address. If you would like additional copies, please call Mutual Fund Services at 1-800-243-1574. - -------------------------------------------------------------------------------- --------------- PRESORTED STANDARD U.S. POSTAGE PAID Lancaster, PA Permit No. 1793 --------------- [GRAPHIC OMITTED] PHOENIX Phoenix Equity Planning Corporation P.O. Box 150480 Hartford, CT 06115-0480 For more information about Phoenix mutual funds, please call your financial representative, contact us at 1-800-243-1574 or visit PHOENIXFUNDS.COM PXP5032 10-07 BPD33234 ITEM 2. CODE OF ETHICS. (a) The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. (c) There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics described in Item 2(b) of the instructions for completion of Form N-CSR. (d) The registrant has not granted any waivers, during the period covered by this report, including an implicit waiver, from a provision of the code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of the instructions for completion of this Item. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. (a)(1) The Registrant's Board of Trustees has determined that the Registrant has an "audit committee financial expert" serving on its Audit Committee. (a)(2) E. Virgil Conway has been determined by the Registrant to possess the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an "audit committee financial expert." Mr. Conway is an "independent" trustee pursuant to paragraph (a)(2) of Item 3 to Form N-CSR. (a)(3) Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. AUDIT FEES (a) The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $64,000 for 2006 and $400,150 for 2007. AUDIT-RELATED FEES (b) The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item are $0 for 2006 and $10,800 for 2007. Such audit-related fees were cross fund fees. TAX FEES (c) The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $15,900 for 2006 and $68,475 for 2007. "Tax Fees" are those primarily associated with review of the Trust's tax provision and qualification as a regulated investment company (RIC) in connection with audits of the Trust's financial statement, review of year-end distributions by the Fund to avoid excise tax for the Trust, periodic discussion with management on tax issues affecting the Trust, and reviewing and signing the Fund's federal income and excise tax returns. ALL OTHER FEES (d) The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2006 and $0 for 2007. (e)(1) Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. The Phoenix Opportunities Trust (the "Fund") Board has adopted policies and procedures with regard to the pre-approval of services provided by PwC. Audit, audit-related and tax compliance services provided to the Fund on an annual basis require specific pre-approval by the Board. As noted above, the Board must also approve other non-audit services provided to the Fund and those non-audit services provided to the Fund's Affiliated Service Providers that relate directly to the operations and financial reporting of the Fund. Certain of these non-audit services that the Board believes are a) consistent with the SEC's auditor independence rules and b) routine and recurring services that will not impair the independence of the independent auditors may be approved by the Board without consideration on a specific case-by-case basis ("general pre-approval"). The Audit Committee has determined that Mr. E. Virgil Conway, Chair of the Audit Committee, may provide pre-approval for such services that meet the above requirements in the event such approval is sought between regularly scheduled meetings. In any event, the Board is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. (e)(2) The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows: (b) Not applicable for 2006 and 100% for 2007 (c) 100% for 2006 and 100% for 2007 (d) Not applicable for 2006 and not applicable for 2007 (f) The percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees was less than fifty percent. (g) The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $956,127 for 2006 and $763,428. (h) The registrant's audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS. Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant's board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto. (a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. (a)(3) Not applicable. (b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and 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 Opportunities Trust -------------------------------------------------------------------- By (Signature and Title)* /s/ George R. Aylward ------------------------------------------------------- George R. Aylward, President (principal executive officer) Date December 7, 2007 ---------------------------------------------------------------------------- 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/ George R. Aylward ------------------------------------------------------- George R. Aylward, President (principal executive officer) Date December 7, 2007 ---------------------------------------------------------------------------- By (Signature and Title)* /s/ W. Patrick Bradley ------------------------------------------------------- W. Patrick Bradley, Chief Financial Officer and Treasurer (principal financial officer) Date December 7, 2007 ---------------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CODE ETH 2 g41986codeeth.txt CODE OF ETHICS EX-99.CODE ETH CODE OF ETHICS FOR CHIEF EXECUTIVE AND SENIOR FINANCIAL OFFICERS The Phoenix mutual funds(1) (each, and collectively, a "FUND") is committed to conducting business in accordance with applicable laws, rules and regulations and the highest standards of business ethics, and to full and accurate disclosure -- financial and otherwise -- in compliance with applicable law. This Code of Ethics, applicable to each Fund's Chief Executive Officer, President, Chief Financial Officer and Treasurer (or persons performing similar functions) (together, "SENIOR OFFICERS"), sets forth policies to guide you in the performance of your duties. As a Senior Officer, you must comply with applicable law. You also have a responsibility to conduct yourself in an honest and ethical manner. You have leadership responsibilities that include creating a culture of high ethical standards and a commitment to compliance, maintaining a work environment that encourages the internal reporting of compliance concerns and promptly addressing compliance concerns. This Code of Ethics recognizes that the Senior Officers are subject to certain conflicts of interest inherent in the operation of investment companies, because the Senior Officers (in addition to their role as senior officers of the Fund) currently or may in the future serve as officers or employees of a Phoenix investment adviser(2) (the "ADVISER"), Phoenix Investment Partners, Ltd., The Phoenix Companies, Inc. or other affiliates thereof (collectively, "PHOENIX") and as officers or trustees/directors of other registered investment companies and unregistered investment funds advised by Phoenix. This Code of Ethics also recognizes that certain laws and regulations applicable to, and certain policies and procedures adopted by, the Fund, the Adviser or - ---------------------- (1) Phoenix Funds (which include Phoenix Equity Series Fund, Phoenix Equity Trust, Phoenix-Goodwin California Tax-Exempt Bond Fund, Phoenix Institutional Mutual Funds, Phoenix Investment Trust 97, Phoenix Multi-Portfolio Fund, Phoenix Multi-Series Trust, Phoenix-Oakhurst Income & Growth Fund, Phoenix-Oakhurst Strategic Allocation Fund, Phoenix Partners Select Funds, Phoenix Portfolios, Phoenix Series Fund, and Phoenix Strategic Equity Series Fund), the Phoenix Partners Funds (which includes Phoenix-Kayne Funds and Phoenix-Seneca Funds), The Phoenix Edge Series Fund ("PESF"); and, The Phoenix-Engemann Funds ("Engemann Funds"). (2) Phoenix Investment Counsel, Inc. ("PIC"), Duff & Phelps Investment Management Co. ("DPIM"), Engemann Asset Management ("EAM"), Euclid Advisors LLC ("EAL"), Kayne Anderson Rudnick Investment Management LLC ("KAR"), Phoenix Variable Advisors, Inc. ("PVA"), Seneca Capital Management, LLC ("SCM"), Phoenix/Zweig Advisers LLC ("PZA") Phoenix govern your conduct in connection with many of the conflict of interest situations that arise in connection with the operations of the Fund, including: o the Investment Company Act of 1940, as amended, and the rules and regulation promulgated thereunder by the Securities and Exchange Commission (the "1940 ACT"); o the Investment Advisers Act of 1940, as amended, and the rules and regulations promulgated thereunder by the Securities and Exchange Commission (the "ADVISERS ACT"); o the Code of Ethics adopted by the Fund pursuant to Rule 17j-1(c) under the 1940 Act (collectively, the "FUND'S 1940 ACT CODE OF ETHICS"); o one or more codes of ethics adopted by the Adviser that have been reviewed and approved by those trustees (the "TRUSTEES") of the Fund that are not "INTERESTED PERSONS" of the Fund (the "INDEPENDENT TRUSTEES") within the meaning of the 1940 Act (the "ADVISER'S 1940 ACT CODE OF ETHICS" and, together with the Fund's 1940 Act Code of Ethics, the "1940 ACT CODES OF ETHICS"); o the policies and procedures adopted by the Fund to address conflict of interest situations, such as procedures under Rule 10f-3 and Rule 17a-7 under the 1940 Act (collectively, the "FUND POLICIES"); and o each Adviser's general policies and procedures to address, among other things, conflict of interest situations and related matters (collectively, the "ADVISER POLICIES"). The provisions of the 1940 Act, the Advisers Act, the 1940 Act Codes of Ethics, the Fund Policies and the Adviser Policies are referred to herein collectively as the "ADDITIONAL CONFLICT RULES". This Code of Ethics is different from, and is intended to supplement, the Additional Conflict Rules. Accordingly, a violation of the Additional Conflict Rules by a Senior Officer is hereby deemed not to be a violation of this Code of Ethics, unless and until the Board of Trustees of the Fund (the "BOARD") shall determine that any such violation of the Additional Conflict Rules is also a violation of this Code of Ethics. SENIOR OFFICERS SHOULD ACT HONESTLY AND CANDIDLY Each Senior Officer has a responsibility to the Fund to act with integrity. Integrity requires, among other things, being honest and candid. Deceit and subordination of principle are inconsistent with integrity. Each Senior Officer must: o act with integrity, including being honest and candid while still maintaining the confidentiality of information where required by law or the Additional Conflict Rules; o not withhold any relevant information; o comply with the laws, rules and regulations that govern the conduct of the Fund's operations and report any suspected violations thereof in accordance with the section below entitled "Compliance With Code Of Ethics"; and o adhere to a high standard of business ethics. CONFLICTS OF INTEREST A conflict of interest for the purpose of this Code of Ethics occurs when your private interests interfere in any way, or even appear to interfere, with the interests of the Fund. Senior Officers are expected to use objective and unbiased standards when making decisions that affect the Fund, keeping in mind that Senior Officers are subject to certain inherent conflicts of interest because Senior Officers of a Fund also are or may be officers of the Adviser and other funds advised or serviced by Phoenix (as a result of which it is incumbent upon you to be familiar with and to seek to comply with the Additional Conflict Rules). You are required to conduct the business of the Fund in an honest and ethical manner, including the ethical handling of actual or apparent conflicts of interest between personal and business relationships. When making any investment, accepting any position or benefits, participating in any transaction or business arrangement or otherwise acting in a manner that creates or appears to create a conflict of interest with respect to the Fund where you are receiving a personal benefit, you should act in accordance with the letter and spirit of this Code of Ethics. If you are in doubt as to the application or interpretation of this Code of Ethics to you as a Senior Officer of the Fund, you should make full disclosure of all relevant facts and circumstances to the Chief Compliance Officer of the Fund (the "CHIEF COMPLIANCE OFFICER") and obtain the prior approval of the Chief Compliance Officer prior to taking or not taking action. Some conflict of interest situations that should always be approved by the Chief Compliance Officer, if material, include the following: o the receipt of any entertainment or non-nominal gift by the Senior Officer, or a member of his or her family, from any company with which the Fund has current or prospective business dealings (other than the Adviser or Phoenix), unless such entertainment or gift is business related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety; o any ownership interest in, or any consulting or employment relationship with, any of the Fund's service providers, other than the Adviser or Phoenix; or o a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Senior Officer's employment by the Adviser or Phoenix, such as compensation or equity ownership. Nominal gifts in the aggregate may rise to create a conflict of interest. In the event that you are involved in any of these situations, you should immediately disclose the situation to the Chief Compliance Officer and to Counsel for the independent trustees. The Chief Compliance Officer will disclose the situation to the full Board. DISCLOSURES It is the policy of the Fund to make full, fair, accurate, timely and understandable disclosure in compliance with all applicable laws and regulations in all reports and documents that the Fund files with, or submits to, the Securities and Exchange Commission or a national securities exchange and in all other public communications made by the Fund. As a Senior Officer, you are required to promote compliance with this policy and to abide by the Fund's standards, policies and procedures designed to promote compliance with this policy. Each Senior Officer must: o familiarize himself or herself with the disclosure requirements applicable to the Fund as well as the business and financial operations of the Fund; and o not knowingly misrepresent, or cause others to misrepresent, facts about the Fund to others, including to the Trustees, the Fund's independent auditors, the Fund's counsel, counsel to the Independent Directors, governmental regulators or self-regulatory organizations. o not knowingly withhold, or cause others to withhold, facts about the Fund to others, including to other Trustees, the Fund's independent auditors, the Fund's counsel, counsel to the independent Trustees, governmental regulators or self-regulatory organizations. COMPLIANCE WITH CODE OF ETHICS If you know of or suspect a violation of this Code of Ethics or other laws, regulations, policies or procedures applicable to the Fund, you must report that information on a timely basis to the Chief Compliance Officer or report it anonymously by following the "whistle blower" policies adopted by the Fund from time to time. For the purposes hereof, the Fund has endorsed usage of the Phoenix confidential, 24-hour toll-free telephone help line at 1-800-813-8180 and shall require the Phoenix Chief Compliance Officer to promptly report any calls made to such number affecting a Fund. NO ONE WILL BE SUBJECT TO RETALIATION BECAUSE OF A GOOD FAITH REPORT OF A SUSPECTED VIOLATION. The Fund will follow these procedures in investigating and enforcing this Code of Ethics, and in reporting on this Code of Ethics: o the Chief Compliance Officer will take all appropriate action to investigate any actual or potential violations reported to him or her; o violations and potential violations will be reported to the applicable Fund Board after such investigation; o if the Fund Board determines that a violation has occurred, it will take all appropriate disciplinary or preventive action; and o appropriate disciplinary or preventive action may include a letter of censure, suspension, dismissal or, in the event of criminal or other serious violations of law, notification of the Securities and Exchange Commission or other appropriate law enforcement authorities. Senior Officers must make this Code of Ethics known to persons who might know of a potential conflict of interest, including the "whistle blower" policies adopted by the Fund from time to time. WAIVERS OF CODE OF ETHICS Except as otherwise provided in this Code of Ethics, the Chief Compliance Officer is responsible for applying this Code of Ethics to specific situations in which questions are presented to the Chief Compliance Officer and has the authority to interpret this Code of Ethics in any particular situation. The Chief Compliance Officer shall take all action he or she considers appropriate to investigate any actual or potential violations reported under this Code of Ethics. The Chief Compliance Officer is authorized to consult, as appropriate, with the chair of the Fund Board and with counsel to the Fund, the Adviser, Phoenix or the Independent Trustees, and is encouraged to do so. Each Fund Board, or any duly designated committee thereof, is responsible for granting waivers of this Code of Ethics, as appropriate. Any changes to or waivers of this Code of Ethics will, to the extent required, be disclosed on Form N-CSR, or otherwise, as provided by Securities and Exchange Commission rules. RECORDKEEPING The Fund will maintain and preserve for a period of not less than six (6) years from the date an action is taken, the first two (2) years in an easily accessible place, a copy of the information or materials supplied to the Fund Board or to any appropriate Committee thereof: o that provided the basis for any amendment or waiver to this Code of Ethics; and o relating to any violation of this Code of Ethics and sanctions imposed for such violation, together with a written record of the approval or action taken by the Board. CONFIDENTIALITY All reports and records prepared or maintained pursuant to this Code of Ethics shall be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code of Ethics, such matters shall not be disclosed to anyone other than the Independent Trustees and their counsel, the Fund and its counsel, the Adviser and/or other Phoenix entity and its counsel and any other advisors, consultants or counsel retained by the Trustees, the Independent Trustees or any committee of the Board. AMENDMENTS This Code of Ethics may not be amended except in written form, which is specifically approved by a majority vote of the Trustees of each Fund, including a majority of the Independent Trustees. NO RIGHTS CREATED This Code of Ethics is a statement of certain fundamental principles, policies and procedures that govern each of the Senior Officers in the conduct of each Fund's business. It is not intended to and does not create any rights in any employee, investor, supplier, competitor, shareholder or any other person or entity. (Revised November 2004) EX-99.CERT 3 g41986_302cert.txt 302 CERTIFICATION CERTIFICATION PURSUANT TO RULE 30A-2(A) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT I, George R. Aylward, certify that: 1. I have reviewed this report on Form N-CSR of Phoenix Opportunities Trust; 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; 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; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: December 7, 2007 /s/ George R. Aylward -------------------------- ------------------------------------------- George R. Aylward, President (principal executive officer) CERTIFICATION PURSUANT TO RULE 30A-2(A) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT I, W. Patrick Bradley, certify that: 1. I have reviewed this report on Form N-CSR of Phoenix Opportunities Trust; 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; 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; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: December 7, 2007 /s/ W. Patrick Bradley ----------------------------- ------------------------------------------ W. Patrick Bradley, Chief Financial Officer and Treasurer (principal financial officer) EX-99.906CERT 4 g41986_906cert.txt 906 CERTIFICATION CERTIFICATION PURSUANT TO RULE 30A-2(B) UNDER THE 1940 ACT AND SECTION 906 OF THE SARBANES-OXLEY ACT I, George R. Aylward, President of Phoenix Opportunities Trust (the "Registrant"), certify that: 1. The Form N-CSR of the Registrant containing the financial statements (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: December 7, 2007 /s/ George R. Aylward ------------------------------- -------------------------------------- George R. Aylward, President (principal executive officer) I, W. Patrick Bradley, Chief Financial Officer and Treasurer of Phoenix Opportunities Trust (the "Registrant"), certify that: 1. The Form N-CSR of the Registrant containing the financial statements (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: December 7, 2007 /s/ W. Patrick Bradley ------------------------------- -------------------------------------- W. Patrick Bradley, Chief Financial Officer and Treasurer (principal financial officer) -----END PRIVACY-ENHANCED MESSAGE-----