N-CSRS 1 g45143opptrustcomb.txt PHOENIX OPPORTUNITIES TRUST SAR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-07455 --------- 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: March 31, 2008 -------------- 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] SEMIANNUAL REPORT ALTERNATIVE FUNDS Phoenix Global Utilities Fund Phoenix International Real Estate Securities 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 High Yield Fund Phoenix Money Market Fund Phoenix Multi-Sector Fixed Income Fund Phoenix Senior Floating Rate Fund INTERNATIONAL FUNDS Phoenix International Strategies Fund Phoenix Worldwide Strategies Fund | | WOULDN'T YOU RATHER HAVE THIS | | DOCUMENT E-MAILED TO YOU? | | Eligible shareholders can sign TRUST NAME: | | up for E-Delivery at PHOENIX OPPORTUNITIES TRUST | March 31, 2008 | 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 Portfolio Holdings Summary ................................................ 6 Schedules of Investments .................................................. 8 Statement of Assets and Liabilities ....................................... 50 Statement of Operations ................................................... 54 Statement of Changes in Net Assets ........................................ 58 Financial Highlights ...................................................... 68 Notes to Financial Statements ............................................. 83 Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements .. 97 Results of Shareholder Meeting ............................................ 102
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 Funds presented in this book 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: Whether we are headed into a recession or firmly entrenched in one, consumers are uncomfortable. Preserving assets has become a critical concern as investors deal with falling home values, tightening credit standards, job worries and high energy prices.. At Phoenix Investment Partners, we are committed to helping investors succeed over the long term and we strive to provide investors with choice. The start of 2008 was rife with investor confusion caused, in part, by weakness in the equity markets, conflicting economic news, continued liquidity issues, a plummeting dollar, and a weakening of world markets. The U.S. economy has slowed considerably--it may even be shrinking slightly. A weaker economy could cause a reduction in revenues for corporations, as well as state and local governments. In response, many investors have moved money into Treasury securities, considered to be safe from the risk of default. This flight to the relative safety of Treasuries has driven their prices up and their yields down, compared with other securities, including municipal bonds. Look at recent performance through the lens of history: Through February 29, the S&P 500 had fallen 9.05% YTD, the worst two-month start to a year since 1933 (when the market fell 17%). March's return moderated somewhat, losing only 0.43%, bringing the year-to-date return to -9.44%. Since 1925, there have been five worse quarters than this, four were in the 1930s and the fifth was the first quarter of 2001 when the S&P 500 lost 11.85%. While the overall market performance for the quarter is somewhat indicative of the state of the economy, the absolute numbers don't tell the whole story; volatility does. The volatility of the S&P 500 in the first quarter ranks an historic fifth of all time, since 1925, as measured by the number of days when the market moved by more than 1%. Thoughtful investment planning calls for a well-diversified portfolio to help moderate the impact of market volatility. PhoenixFunds 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. This report for the fiscal period ended March 31, 2008 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. It is 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. We are committed to providing you with 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. It is our privilege to serve you. Sincerely yours, /s/ George R. Aylward George R. Aylward President, PhoenixFunds APRIL 2008 PERFORMANCE DATA QUOTED REPRESENTS PAST RESULTS. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN PERFORMANCE SHOWN ABOVE. 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 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. JPY Japanese Yen 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 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. 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. 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 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 2 THIS PAGE INTENTIONALLY BLANK. PHOENIX OPPORTUNITIES TRUST DISCLOSURE OF FUND EXPENSES (UNAUDITED) FOR THE SIX-MONTH PERIOD OF OCTOBER 1, 2007 TO MARCH 31, 2008 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 Table illustrates 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 October 1, 2007 March 31, 2008 Ratio Period* --------------------------------------------------------------------------------------------------------------- GLOBAL UTILITIES FUND --------------------------------------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $ 971.30 1.15% $ 5.67 Class C 1,000.00 968.80 1.90 9.35 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,019.18 1.15 5.82 Class C 1,000.00 1,015.38 1.90 9.62 ------------------------------------------------------------------------------------------------------------ INTERNATIONAL REAL ESTATE SECURITIES FUND ------------------------------------------------------------------------------------------------------------ ACTUAL Class A $1,000.00 $ 880.90 1.50% $ 7.01 Class C 1,000.00 876.80 2.25 10.50 Class I 1,000.00 881.60 1.25 5.85 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,017.41 1.50 7.59 Class C 1,000.00 1,013.61 2.25 11.39 Class I 1,000.00 1,018.67 1.25 6.33 ------------------------------------------------------------------------------------------------------------ MARKET NEUTRAL FUND ------------------------------------------------------------------------------------------------------------ ACTUAL Class A $1,000.00 $ 989.80 3.54% $17.61 Class B 1,000.00 986.30 4.20 20.86 Class C 1,000.00 985.40 4.21 20.90 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,007.08 3.54 17.92 Class B 1,000.00 1,003.74 4.20 21.26 Class C 1,000.00 1,003.69 4.21 21.31 ------------------------------------------------------------------------------------------------------------ DIVERSIFIER PHOLIO(SM) # ------------------------------------------------------------------------------------------------------------ ACTUAL Class A $1,000.00 $ 988.00 0.33% $ 1.64 Class C 1,000.00 984.30 1.08 5.36 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,023.33 0.33 1.67 Class C 1,000.00 1,019.53 1.08 5.47 ------------------------------------------------------------------------------------------------------------ WEALTH ACCUMULATOR PHOLIO(SM) # ------------------------------------------------------------------------------------------------------------ ACTUAL Class A $1,000.00 $ 874.50 0.30% $ 1.41 Class C 1,000.00 871.10 1.05 4.91 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,023.48 0.30 1.52 Class C 1,000.00 1,019.68 1.05 5.32 ------------------------------------------------------------------------------------------------------------ WEALTH BUILDER PHOLIO(SM) # ------------------------------------------------------------------------------------------------------------ ACTUAL Class A $1,000.00 $ 904.70 0.21% $ 1.00 Class C 1,000.00 900.40 0.96 4.56 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,023.94 0.21 1.06 Class C 1,000.00 1,020.14 0.96 4.86 ------------------------------------------------------------------------------------------------------------ WEALTH GUARDIAN PHOLIO(SM) # ------------------------------------------------------------------------------------------------------------ ACTUAL Class A $1,000.00 $ 929.00 0.22% $ 1.06 Class C 1,000.00 925.80 0.97 4.67 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,023.89 0.22 1.11 Class C 1,000.00 1,020.09 0.97 4.91
4 PHOENIX OPPORTUNITIES TRUST DISCLOSURE OF FUND EXPENSES (UNAUDITED) (CONTINUED) FOR THE SIX-MONTH PERIOD OF OCTOBER 1, 2007 TO MARCH 31, 2008 EXPENSE TABLE
Beginning Ending Annualized Expenses Paid Account Value Account Value Expense During October 1, 2007 March 31, 2008 Ratio Period* --------------------------------------------------------------------------------------------------------------- BOND FUND --------------------------------------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,026.30 1.28% $ 6.48 Class B 1,000.00 1,022.70 2.04 10.32 Class C 1,000.00 1,022.70 2.06 10.42 Class I 1,000.00 1,028.20 1.02 5.17 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,018.52 1.28 6.48 Class B 1,000.00 1,014.67 2.04 10.33 Class C 1,000.00 1,014.57 2.06 10.43 Class I 1,000.00 1,019.84 1.02 5.16 --------------------------------------------------------------------------------------------------------------- CA TAX-EXEMPT BOND FUND --------------------------------------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,007.20 0.85% $ 4.27 Class I 1,000.00 1,008.50 0.60 3.01 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,020.70 0.85 4.30 Class I 1,000.00 1,021.96 0.60 3.04 --------------------------------------------------------------------------------------------------------------- CORE BOND FUND --------------------------------------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,022.00 1.00% $ 5.06 Class B 1,000.00 1,019.70 1.75 8.84 Class C 1,000.00 1,018.40 1.75 8.83 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,019.94 1.00 5.06 Class B 1,000.00 1,016.14 1.75 8.86 Class C 1,000.00 1,016.14 1.75 8.86 --------------------------------------------------------------------------------------------------------------- HIGH YIELD FUND --------------------------------------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $ 948.20 1.33% $ 6.48 Class B 1,000.00 945.60 2.08 10.12 Class C 1,000.00 943.90 2.08 10.11 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,018.27 1.33 6.73 Class B 1,000.00 1,014.47 2.08 10.53 Class C 1,000.00 1,014.47 2.08 10.53 --------------------------------------------------------------------------------------------------------------- MONEY MARKET FUND --------------------------------------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $1,018.70 0.78% $ 3.94 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,021.05 0.78 3.95 --------------------------------------------------------------------------------------------------------------- MULTI-SECTOR FIXED INCOME FUND --------------------------------------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $ 977.00 1.13% $ 5.59 Class B 1,000.00 972.30 1.88 9.27 Class C 1,000.00 972.50 1.88 9.27 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,019.28 1.13 5.72 Class B 1,000.00 1,015.48 1.88 9.52 Class C 1,000.00 1,015.48 1.88 9.52 Beginning Ending Annualized Expenses Paid Account Value Account Value Expense During October 1, 2007 March 31, 2008 Ratio Period* --------------------------------------------------------------------------------------------------------------- SENIOR FLOATING RATE FUND --------------------------------------------------------------------------------------------------------------- ACTUAL++ Class A $1,000.00 $1,000.50 1.20% $ 6.00 Class C 1,000.00 999.30 1.95 9.75 Class I 1,000.00 1,000.90 0.95 4.75 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,018.93 1.20 6.08 Class C 1,000.00 1,015.13 1.95 9.87 Class I 1,000.00 1,020.19 0.95 4.81 HYPOTHETICAL (5% RETURN BEFORE EXPENSES SINCE INCEPTION)++ Class A 1,000.00 1,023.04 1.20 1.96 Class C 1,000.00 1,021.82 1.95 3.18 Class I 1,000.00 1,023.45 0.95 1.55 --------------------------------------------------------------------------------------------------------------- INTERNATIONAL STRATEGIES FUND --------------------------------------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $ 858.40 1.59% $ 7.39 Class B 1,000.00 854.30 2.33 10.80 Class C 1,000.00 854.50 2.34 10.85 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,016.95 1.59 8.05 Class B 1,000.00 1,013.20 2.33 11.80 Class C 1,000.00 1,013.15 2.34 11.85 --------------------------------------------------------------------------------------------------------------- WORLDWIDE STRATEGIES FUND --------------------------------------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $ 869.74 1.61% $ 7.53 Class B 1,000.00 866.60 2.36 11.01 Class C 1,000.00 867.10 2.36 11.02 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,016.85 1.61 8.15 Class B 1,000.00 1,013.05 2.36 11.95 Class C 1,000.00 1,013.05 2.36 11.95
---------- * Expenses are equal to the Funds' annualized expense ratio which includes waived fees, reimbursed expenses and dividends on short sales, 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 366 days to reflect the one-half year period. Exceptions noted under ++. ++ Inception date is January 31, 2008. 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 (59) expenses were accrued then divided by 366 to reflect the period since inception. # 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 PHOENIX OPPORTUNITIES TRUST PORTFOLIO HOLDINGS SUMMARY WEIGHTINGS MARCH 31, 2008 (UNAUDITED) For each Fund, the following tables present portfolio holdings within certain sectors or countries and as a percentage of total investments attributable to each sector. PHOENIX GLOBAL UTILITIES FUND ----------------------------- Electric Utilities 50% Integrated Telecommunication Services 25 Multi-Utilities 18 Wireless Telecommunication Services 2 Independent Power Producers 2 Oil & Gas 1 Other (includes short-term investments) 2
PHOENIX MARKET NEUTRAL FUND ---------------------------
Long Short Positions Positions --------- --------- Consumer Discretionary 19% 20% Industrials 15 18 Financials 14 14 Consumer Staples 13 13 Health Care 13 13 Information Technology 9 7 Utilities 6 5 Other (includes short-term investments) 11 10
PHOENIX WEALTH ACCUMULATOR PHOLIO(SM) ------------------------------------- Domestic Equity Funds 71% Foreign Equity Funds 29
PHOENIX WEALTH GUARDIAN PHOLIO(SM) ---------------------------------- Domestic Equity Funds 42% Domestic Fixed Income Funds 41 Foreign Equity Funds 17
PHOENIX INTERNATIONAL REAL ESTATE SECURITIES FUND ------------------------------------------------- Australia 21% United Kingdom 21 France 14 Japan 9 Canada 8 Hong Kong 7 Singapore 7 Other 13
PHOENIX DIVERSIFIER PHOLIO(SM) ------------------------------ Exchange Traded Funds 44% Domestic Equity Funds 41 Foreign Equity Funds 14 Other (includes short-term investments) 1
PHOENIX WEALTH BUILDER PHOLIO(SM) --------------------------------- Domestic Equity Funds 54% Foreign Equity Funds 24 Domestic Fixed Income Funds 21 Other (includes short-term investments) 1
PHOENIX BOND FUND ----------------- Agency Mortgage-Backed Securities 36% U.S. Government Securities 23 Domestic Corporate Bonds 19 Non-Agency Mortgage-Backed Securities 10 Foreign Corporate Bonds 6 Other 6
6 PHOENIX OPPORTUNITIES TRUST PORTFOLIO HOLDINGS SUMMARY WEIGHTINGS MARCH 31, 2008 (CONTINUED) (UNAUDITED) PHOENIX CA TAX-EXEMPT BOND FUND ------------------------------- Pre-Refunded 28% General Obligation 21 General Revenue 16 Water & Sewer Revenue 9 Medical Revenue 6 Development Revenue 5 Power Revenue 5 Other (includes short-term investments) 10
PHOENIX HIGH YIELD FUND ----------------------- Domestic Corporate Bonds 88% Foreign Corporate Bonds 7 Other (includes short-term investments) 5
PHOENIX MULTI-SECTOR FIXED INCOME FUND -------------------------------------- Domestic Corporate Bonds 31% Foreign Government Securities 22 Foreign Corporate Bonds 14 Domestic Loan Agreements 12 Non-Agency Mortgage-Backed Securities 7 Municipal Bonds 3 Agency Non-Mortgage-Backed Securities 1 Other (includes short-term investments) 10
PHOENIX INTERNATIONAL STRATEGIES FUND ------------------------------------- Japan 21% United Kingdom 17 Germany 12 France 11 Australia 7 Netherlands 7 Switzerland 5 Other 20
PHOENIX CORE BOND FUND ---------------------- Non-Agency Mortgage-Backed Securities 29% Agency Mortgage-Backed Securities 24 Domestic Corporate Bonds 19 Municipal Bonds 11 Asset-Backed Securities 8 Foreign Corporate Bonds 3 Foreign Government Securities 1 Other (includes short-term investments) 5
PHOENIX MONEY MARKET FUND ------------------------- Commercial Paper 59% Medium Term Notes 22 Federal Agency Securities 19
PHOENIX SENIOR FLOATING RATE NOTE FUND -------------------------------------- Domestic Loan Agreements 80% Foreign Corporate Bonds 3 Other (includes short-term investments) 17
PHOENIX WORLDWIDE STRATEGIES FUND --------------------------------- United States 26% Japan 13 United Kingdom 11 France 8 Germany 7 Australia 4 Netherlands 4 Other (includes short-term investments) 27
7 PHOENIX GLOBAL UTILITIES FUND SCHEDULE OF INVESTMENTS MARCH 31, 2008 (UNAUDITED)
VALUE SHARES (000) ------- ------------- DOMESTIC COMMON STOCKS--63.5% ELECTRIC UTILITIES--37.2% American Electric Power Co., Inc. 35,670 $ 1,485 Duke Energy Corp. 111,850 1,996 Edison International 26,260 1,287 Entergy Corp. 20,370 2,222 Exelon Corp. 60,660 4,930 FirstEnergy Corp. 30,350 2,083 FPL Group, Inc. 40,630 2,549 Northeast Utilities 22,260 546 Pepco Holdings, Inc. 32,770 810 PPL Corp. 36,510 1,677 Progress Energy, Inc. 21,030 877 Southern Co. (The) 69,810 2,486 ------------- 22,948 ------------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS--2.2% Constellation Energy Group, Inc. 15,600 1,377 ------------- INTEGRATED TELECOMMUNICATION SERVICES--8.5% AT&T, Inc. 78,310 2,999 Verizon Communications, Inc. 47,170 1,719 Windstream Corp. 41,170 492 ------------- 5,210 ------------- MULTI-UTILITIES--14.7% Alliant Energy Corp. 10,320 361 CenterPoint Energy, Inc. 25,850 369 Dominion Resources, Inc. 62,380 2,548 NSTAR 15,460 470 PG&E Corp. 34,960 1,287 Public Service Enterprise Group, Inc. 55,030 2,212 Sempra Energy 33,720 1,797 ------------- 9,044 ------------- OIL & GAS STORAGE & TRANSPORTATION--0.9% Spectra Energy Corp. 24,050 547 ------------- --------------------------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $39,839) 39,126 ---------------------------------------------------------------------------------------------
VALUE SHARES (000) ------- ------------- FOREIGN COMMON STOCKS(b)--33.8% ELECTRIC UTILITIES--12.0% E.ON AG (Germany) 11,560 $ 2,140 Energias de Portugal SA (Portugal) 139,950 848 Fortum Oyj (Finland) 23,795 970 Iberdrola S.A. (Spain) 96,280 1,493 Red Electrica de Espana (Spain) 14,150 866 Scottish and Southern Energy plc (United Kingdom) 37,450 1,044 ------------- 7,361 ------------- INTEGRATED TELECOMMUNICATION SERVICES--16.7% Chunghwa Telecom Co., Ltd. ADR (Taiwan) 48,730 1,268 France Telecom SA Sponsored ADR (France) 36,560 1,228 Koninklijke (Royal) KPN N.V. Sponsored ADR (Netherlands) 75,740 1,281 Neuf Cegetel (France) 19,610 1,092 Singapore Telecommunications Ltd. (Singapore) 296,400 842 Swisscom AG (Switzerland) 2,560 877 Telecom Corporation of New Zealand Ltd. Sponsored ADR (New Zealand) 51,670 768 Telefonica S.A. Sponsored ADR (Spain) 16,070 1,390 TeliaSonera AB (Sweden) 111,530 895 TELUS Corp. (Canada) 14,920 650 ------------- 10,291 ------------- MULTI-UTILITIES--2.7% National Grid plc (United Kingdom) 33,306 457 RWE AG (Germany) 9,950 1,223 ------------- 1,680 -------------
VALUE SHARES (000) ------- ------------- WIRELESS TELECOMMUNICATION SERVICES--2.4% Vodafone Group plc Sponsored ADR (United Kingdom) 50,720 $ 1,497 ------------- --------------------------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $18,698) 20,829 --------------------------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--97.3% (IDENTIFIED COST $58,537) 59,955 ---------------------------------------------------------------------------------------------
PAR VALUE (000) ------- SHORT-TERM INVESTMENTS--1.9% FEDERAL AGENCY SECURITIES(c)--1.9% FHLB 1.500% due 4/1/08 $ 1,195 1,195 --------------------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $1,195) 1,195 --------------------------------------------------------------------------------------------- TOTAL INVESTMENTS--99.2% (IDENTIFIED COST $59,732) 61,150(a) Other assets and liabilities, net--0.8% 477 ------------- NET ASSETS--100.0% $ 61,627 =============
FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): Net unrealized appreciation of investment securities is comprised of gross appreciation of $3,477 and gross depreciation of $2,165 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $59,838. (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 8 PHOENIX INTERNATIONAL REAL ESTATE SECURITIES FUND SCHEDULE OF INVESTMENTS MARCH 31, 2008 (UNAUDITED)
VALUE SHARES (000) ------- ----------- FOREIGN COMMON STOCKS(c)--96.7% AUSTRALIA--20.8% CFS Retail Property Trust (Retail REITs) 102,452 $ 203 Commonwealth Property Office Fund (Office REITs) 108,923 132 Dexus Property Group (Diversified REITs) 93,987 145 Goodman Group (Industrial REITs) 99,640 393 GPT Group (Diversified REITs) 80,972 241 Westfield Group (Retail REITs) 78,946 1,284 ----------- 2,398 ----------- CANADA--7.4% Allied Properties Real Estate Investment Trust (Office REITs) 5,900 112 Boardwalk Real Estate Investment Trust (Residential REITs) 6,460 239 Brookfield Properties Corp. (Real Estate Management & Development) 9,300 179 Cominar Real Estate Investment Trust (Diversified REITs) 5,750 114 RioCan Real Estate Investment Trust (Retail REITs) 10,200 206 ----------- 850 ----------- FRANCE--13.2% Fonciere Des Regions (Real Estate Management & Development) 897 132 Gecina SA (Diversified REITs) 735 110 Klepierre (Retail REITs) 4,196 257 Societe Immobiliere de Location Pour L'industrie Et Le Commerce (Real Estate Management & Development) 792 120 Unibail-Rodamco (Retail REITs) 3,505 902 ----------- 1,521 ----------- GERMANY--3.9% Alstria Office Reit-AG (Specialized REITs) (b) 5,232 111
VALUE SHARES (000) ------- ----------- GERMANY--(CONTINUED) Deutsche Euroshop AG (Real Estate Management & Development) 2,418 $ 102 DIC Asset AG (Real Estate Management & Development) 3,801 126 IVG Immobilien AG (Real Estate Management & Development) 4,232 118 ----------- 457 ----------- HONG KONG--6.7% Champion Reit (Specialized REITs) 162,000 83 Hongkong Land Holdings Ltd. (Real Estate Management & Development) 99,000 409 Link (The) (Retail REITs) 129,000 286 ----------- 778 ----------- JAPAN--9.1% Japan Prime Realty Investment Corp. (Office REITs) 41 135 Japan Real Estate Investment Corp. (Office REITs) 24 279 Nippon Accomodations Fund, Inc. (Specialized REITs) 16 77 Nippon Building Fund, Inc. (Office REITs) 30 379 Nippon Residential Investment Corp. (Specialized REITs) 13 46 Nomura Real Estate Office Fund, Inc. (Office REITs) 17 138 ----------- 1,054 ----------- LUXEMBOURG--1.2% GAGFAH S.A. (Real Estate Management & Development) 7,151 134 NETHERLANDS--3.4% Corio N.V. (Retail REITs) 2,481 217 Eurocommercial Properties N.V. (Specialized REITs) 3,212 180 ----------- 397 ----------- SINGAPORE--6.3% Ascendas Real Estate Investment Trust (Industrial REITs) 107,000 185 CapitaCommercial Trust (Office REITs) 105,000 169
VALUE SHARES (000) ------- ----------- SINGAPORE--(CONTINUED) Capitamall Trust (Retail REITs) 104,000 $ 261 CDL Hospitality Trusts (Specialized REITs) 78,000 117 ----------- 732 ----------- SWEDEN--2.6% Castellum AB (Real Estate Management & Development) 12,466 152 Fabege AB (Real Estate Management & Development) 13,509 144 ----------- 296 ----------- SWITZERLAND--1.7% PSP Swiss Property AG (Real Estate Management & Development) (b) 2,846 192 UNITED KINGDOM--20.4% Big Yellow Group plc (Real Estate Management & Development) 3,446 30 British Land Co. plc (Diversified REITs) 19,173 349 Brixton plc (Industrial REITs) 17,904 117 Derwent London plc (Real Estate Management & Development) 6,846 206 Great Portland Estates plc (Office REITs) 14,353 151 Hammerson plc (Retail REITs) 13,309 294 Land Securities Group plc (Retail REITs) 17,453 523 Liberty International plc (Retail REITs) 16,065 311 Safestore Holdings Ltd. (Specialized Consumer Services) 44,219 142 Segro plc (Industrial REITs) 23,428 236 ----------- 2,359 ------------------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $12,569) 11,168 ------------------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--96.7% (IDENTIFIED COST $12,569) 11,168 ------------------------------------------------------------------------------------- TOTAL INVESTMENTS--96.7% (IDENTIFIED COST $12,569) 11,168(a) Other assets and liabilities, net--3.3% 382 ----------- NET ASSETS--100.0% $ 11,550 ===========
FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): Net unrealized depreciation of investment securities is comprised of gross appreciation of $128 and gross depreciation of $1,536 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $12,576. (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. See Notes to Financial Statements 9 PHOENIX MARKET NEUTRAL FUND SCHEDULE OF INVESTMENTS AND SECURITIES SOLD SHORT MARCH 31, 2008 (UNAUDITED)
VALUE SHARES (000) ------- ----------- DOMESTIC COMMON STOCKS--78.9% ADVERTISING--0.7% Omnicom Group, Inc. 15,650 $ 691 ----------- AEROSPACE & DEFENSE--2.8% Esterline Technologies Corp. (b) 14,340 722 Goodrich Corp. 14,160 814 Lockheed Martin Corp. 4,890 486 Raytheon Co. 9,940 642 ----------- 2,664 ----------- AIRLINES--1.0% AirTran Holdings, Inc. (b) 38,150 252 Northwest Airlines Corp. (b) 17,980 162 US Airways Group, Inc. (b) 64,830 577 ----------- 991 ----------- ALTERNATIVE CARRIERS--0.9% Cogent Communications Group, Inc. (b) 44,650 818 ----------- APPAREL RETAIL--2.0% Children's Place (The) (b) 11,410 280 Gap, Inc. (The) 17,910 352 Jos. A. Bank Clothiers, Inc. (b) 15,790 324 Ross Stores, Inc. 15,580 467 TJX Cos., Inc. (The) 14,020 464 ----------- 1,887 ----------- APPAREL, ACCESSORIES & LUXURY GOODS--3.5% Gildan Activewear, Inc. (b) 9,800 366 Hanesbrands, Inc. (b) 17,280 505 Jones Apparel Group, Inc. 36,180 485 Kenneth Cole Productions, Inc. Class A 9,620 163 Phillips-Van Heusen Corp. 9,620 365 True Religion Apparel, Inc. (b) 48,470 899 Warnaco Group, Inc. (The) (b) 13,840 546 ----------- 3,329 ----------- APPLICATION SOFTWARE--0.4% Adobe Systems, Inc. (b) 11,230 400 ----------- ASSET MANAGEMENT & CUSTODY BANKS--2.0% Ameriprise Financial, Inc. 6,800 353 Federated Investors, Inc. Class B 11,460 449 Invesco Ltd. 27,400 667 State Street Corp. 5,010 396 ----------- 1,865 ----------- AUTO PARTS & EQUIPMENT--0.6% Drew Industries, Inc. (b) 10,810 265 Johnson Controls, Inc. 8,380 283 ----------- 548 -----------
VALUE SHARES (000) ------- ----------- AUTOMOTIVE RETAIL--1.2% Advance Auto Parts, Inc. 22,750 $ 775 O'Reilly Automotive, Inc. (b) 12,290 350 ----------- 1,125 ----------- BIOTECHNOLOGY--1.2% BioMarin Pharmaceutical, Inc. (b) 5,040 178 Genzyme Corp. (b) 6,260 467 Gilead Sciences, Inc. (b) 5,810 299 Millennium Pharmaceuticals, Inc. (b) 12,200 189 ----------- 1,133 ----------- BREWERS--0.8% Molson Coors Brewing Co. Class B 13,850 728 ----------- BROADCASTING & CABLE TV--1.1% Belo Corp. Class A 34,710 367 Cox Radio, Inc. Class A (b) 25,590 304 Discovery Holdings Co. Class A (b) 18,970 402 ----------- 1,073 ----------- COMMODITY CHEMICALS--0.3% Celanese Corp. Series A 6,320 247 ----------- COMMUNICATIONS EQUIPMENT--0.6% Arris Group, Inc. (b) 100,230 583 ----------- CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--0.6% Terex Corp. (b) 8,780 549 ----------- DATA PROCESSING & OUTSOURCED SERVICES--1.3% NeuStar, Inc. Class A (b) 16,440 435 Visa, Inc. Class A (b) 12,140 757 ----------- 1,192 ----------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--1.2% GEO Group, Inc. (The) (b) 24,350 693 LECG Corp. (b) 18,900 177 Pike Electric Corp. (b) 20,130 280 ----------- 1,150 ----------- DIVERSIFIED METALS & MINING--0.3% Freeport-McMoRan Copper & Gold, Inc. (Indonesia) (c) 2,970 286 ----------- DRUG RETAIL--1.4% CVS Caremark Corp. 32,670 1,323 ----------- EDUCATION SERVICES--0.4% Apollo Group, Inc. Class A (b) 7,740 334 -----------
VALUE SHARES (000) ------- ----------- ELECTRIC UTILITIES--3.3% Allegheny Energy, Inc. 14,130 $ 714 DPL, Inc. 28,730 737 Entergy Corp. 8,170 891 Portland General Electric Co. 35,660 804 ----------- 3,146 ----------- ELECTRICAL COMPONENTS & EQUIPMENT--1.4% Emerson Electric Co. 25,370 1,306 ----------- ELECTRONIC EQUIPMENT MANUFACTURERS--0.7% Amphenol Corp. Class A 11,720 437 Mettler-Toledo International, Inc. (b) 2,410 234 ----------- 671 ----------- ENVIRONMENTAL & FACILITIES SERVICES--0.3% Clean Harbors, Inc. (b) 4,160 270 ----------- FERTILIZERS & AGRICULTURAL CHEMICALS--0.3% Monsanto Co. 2,410 269 ----------- FOOD DISTRIBUTORS--0.5% SYSCO Corp. 16,840 489 ----------- FOOD RETAIL--0.8% SUPERVALU, Inc. 17,420 522 Winn-Dixie Stores, Inc. (b) 15,320 275 ----------- 797 ----------- FOOTWEAR--0.7% Crocs, Inc. (b) 26,710 467 Timberland Co. (The) Class A (b) 11,250 154 ----------- 621 ----------- HEALTH CARE DISTRIBUTORS--0.2% AmerisourceBergen Corp. 4,630 190 ----------- HEALTH CARE EQUIPMENT--4.8% Angiodynamics, Inc. (b) 33,870 391 Becton, Dickinson & Co. 9,240 793 Covidien Ltd. 14,050 622 Hologic, Inc. (b) 3,770 210 Hospira, Inc. (b) 19,280 825 NuVasive, Inc. (b) 4,060 140 St. Jude Medical, Inc. (b) 14,000 605 Volcano Corp. (b) 59,470 743 Zimmer Holdings, Inc. (b) 2,490 194 ----------- 4,523 ----------- HEALTH CARE FACILITIES--0.6% Odyssey HealthCare, Inc. (b) 58,520 527 -----------
See Notes to Financial Statements 10 PHOENIX MARKET NEUTRAL FUND
VALUE SHARES (000) ------- ------------ HEALTH CARE SERVICES--0.8% Amedisys, Inc. (b) 13,940 $ 548 Laboratory Corp. of America Holdings (b) 2,940 217 ------------ 765 ------------ HEALTH CARE SUPPLIES--0.2% DENTSPLY International, Inc. 6,030 233 ------------ HOME FURNISHINGS--0.5% Ethan Allen Interiors, Inc. 15,040 428 ------------ HOME IMPROVEMENT RETAIL--0.4% Home Depot, Inc. (The) 12,800 358 ------------ HOMEBUILDING--1.2% Champion Enterprises, Inc. (b) 109,060 1,094 ------------ HOTELS, RESORTS & CRUISE LINES--0.2% Marriott International, Inc. Class A 5,540 190 ------------ HOUSEHOLD PRODUCTS--0.4% Church & Dwight Co., Inc. 6,360 345 ------------ HUMAN RESOURCES & EMPLOYMENT SERVICES--0.6% Robert Half International, Inc. 23,550 606 ------------ HYPERMARKETS & SUPER CENTERS--0.9% BJ's Wholesale Club, Inc. (b) 24,120 861 ------------ INDEPENDENT POWER PRODUCERS & ENERGY TRADERS--0.9% Constellation Energy Group, Inc. 9,630 850 ------------ INDUSTRIAL CONGLOMERATES--0.8% Textron, Inc. 10,100 560 Tyco International Ltd. 4,930 217 ------------ 777 ------------ INDUSTRIAL MACHINERY--1.1% Eaton Corp. 12,810 1,021 ------------ INTEGRATED OIL & GAS--1.1% ConocoPhillips 13,890 1,059 ------------ INTEGRATED TELECOMMUNICATION SERVICES--1.9% AT&T, Inc. 12,880 493 NTELOS Holdings Corp. 38,250 926 Verizon Communications, Inc. 11,280 411 ------------ 1,830 ------------ INTERNET SOFTWARE & SERVICES--1.1% Akamai Technologies, Inc. (b) 23,960 675 Ariba, Inc. (b) 37,420 361 ------------ 1,036 ------------ INVESTMENT BANKING & BROKERAGE--1.4% Investment Technology Group, Inc. (b) 15,030 694 Merrill Lynch & Co., Inc. 6,050 247 Piper Jaffray Cos. (b) 12,700 431 ------------ 1,372 ------------
VALUE SHARES (000) ------- ------------ LIFE & HEALTH INSURANCE--2.6% Conseco, Inc. (b) 49,730 $ 507 MetLife, Inc. 9,180 553 Principal Financial Group, Inc. (The) 5,850 326 Protective Life Corp. 25,280 1,026 ------------ 2,412 ------------ LIFE SCIENCES TOOLS & SERVICES--1.7% Illumina, Inc. (b) 2,040 155 PerkinElmer, Inc. 21,090 511 Thermo Fisher Scientific, Inc. (b) 16,220 922 ------------ 1,588 ------------ MANAGED HEALTH CARE--0.2% WellPoint, Inc. (b) 3,890 172 ------------ MORTGAGE REITS--0.6% Redwood Trust, Inc. 16,300 592 ------------ MOVIES & ENTERTAINMENT--1.2% Live Nation, Inc. (b) 27,000 328 News Corp. Class B 20,810 396 Walt Disney Co. (The) 13,100 411 ------------ 1,135 ------------ MULTI-UTILITIES--0.7% CMS Energy Corp. 50,150 679 ------------ OFFICE REITS--0.2% Lexington Realty Trust 14,830 214 ------------ OFFICE SERVICES & SUPPLIES--0.2% Steelcase, Inc. Class A 15,480 171 ------------ OIL & GAS DRILLING--0.7% Unit Corp. (b) 11,490 651 ------------ OIL & GAS EXPLORATION & PRODUCTION--1.0% XTO Energy, Inc. 16,010 990 ------------ OIL & GAS REFINING & MARKETING--0.4% CVR Energy, Inc. (b) 16,330 376 ------------ PACKAGED FOODS & MEATS--2.2% ConAgra Foods, Inc. 21,510 515 Dean Foods Co. (b) 24,610 495 Ralcorp Holdings, Inc. (b) 11,750 683 Smithfield Foods, Inc. (b) 13,560 349 ------------ 2,042 ------------ PERSONAL PRODUCTS--1.8% Bare Escentuals, Inc. (b) 40,370 945 Estee Lauder Cos., Inc. (The) Class A 16,460 755 ------------ 1,700 ------------ PHARMACEUTICALS--0.6% Schering-Plough Corp. 18,110 261 Wyeth 6,980 291 ------------ 552 ------------
VALUE SHARES (000) ------- ------------ PROPERTY & CASUALTY INSURANCE--0.6% Assured Guaranty Ltd. 24,090 $ 572 ------------ PUBLISHING--0.5% AH Belo Corp. (b) 17,344 198 Interactive Data Corp. 9,550 272 ------------ 470 ------------ REGIONAL BANKS--1.5% Pacific Capital Bancorp 22,820 491 PNC Financial Services Group, Inc. (The) 4,700 308 Wilmington Trust Corp. 20,630 641 ------------ 1,440 ------------ REINSURANCE--0.2% Max Re Capital Group Ltd. 8,650 227 ------------ SEMICONDUCTORS--0.3% Maxim Integrated Products, Inc. 15,240 311 ------------ SOFT DRINKS--0.5% Coca-Cola Enterprises, Inc. 18,110 438 ------------ SPECIALIZED CONSUMER SERVICES--0.6% Regis Corp. 21,710 597 ------------ SPECIALIZED FINANCE--0.4% Moody's Corp. 10,690 372 ------------ SPECIALTY CHEMICALS--0.9% International Flavors & Fragrances, Inc. 18,740 825 ------------ SPECIALTY STORES--0.3% OfficeMax, Inc. 15,320 293 ------------ STEEL--0.2% Allegheny Technologies, Inc. 3,160 225 ------------ SYSTEMS SOFTWARE--1.6% BMC Software, Inc. (b) 13,790 448 CA, Inc. 11,980 270 McAfee, Inc. (b) 12,930 428 Symantec Corp. (b) 21,450 356 ------------ 1,502 ------------ THRIFTS & MORTGAGE FINANCE--2.0% BankAtlantic Bancorp, Inc. Class A 70,600 276 Flushing Financial Corp. 15,320 269 Hudson City Bancorp, Inc. 15,460 274 New York Community Bancorp, Inc. 14,670 267 People's United Financial, Inc. 46,230 800 ------------ 1,886 ------------ TOBACCO--0.9% Altria Group, Inc. 12,030 267 Philip Morris International, Inc. (b) 12,030 609 ------------ 876 ------------
See Notes to Financial Statements 11 PHOENIX MARKET NEUTRAL FUND
VALUE SHARES (000) ------- ------------ TRUCKING--2.9% Heartland Express, Inc. 90,380 $ 1,289 Knight Transportation, Inc. 53,100 874 Landstar System, Inc. 10,480 546 ------------ 2,709 ------------ ------------------------------------------------------------------------------------ TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $76,134) 74,567 ------------------------------------------------------------------------------------ FOREIGN COMMON STOCKS(c)--10.5% AIR FREIGHT & LOGISTICS--0.7% UTi Worldwide, Inc. (United States) 33,980 682 ------------ APPLICATION SOFTWARE--0.4% Amdocs Ltd. (United States) (b) 14,290 405 ------------ AUTO PARTS & EQUIPMENT--0.5% Autoliv, Inc. (Sweden) 10,100 507 ------------ AUTOMOBILE MANUFACTURERS--1.0% Daimler AG (Germany) 5,540 473 Toyota Motor Corp. (Japan) 8,800 439 ------------ 912 ------------ BROADCASTING & CABLE TV--0.4% Central European Media Enterprises Ltd. (Bermuda) (b) 4,470 381 ------------ CONSTRUCTION MATERIALS--0.5% Buzzi Unicem SpA (Italy) 19,400 483 ------------ DIVERSIFIED CHEMICALS--0.2% Bayer AG Sponsored ADR (Germany) 2,300 183 ------------ HEALTH CARE EQUIPMENT--0.9% Fresenius SE (Germany) 5,950 496 Sonova Holding AG Registered Shares (Switzerland) 4,230 388 ------------ 884 ------------ HOME ENTERTAINMENT SOFTWARE--0.6% Nintendo Co. Ltd. (Japan) 1,000 516 ------------ HOTELS, RESORTS & CRUISE LINES--0.5% Thomas Cook Group plc (United Kingdom) 80,910 466 ------------ INTEGRATED TELECOMMUNICATION SERVICES--0.5% Telefonica Data Argentina S.A. (Argentina) (b)(e) 1,400 0 Telefonica Moviles S.A. (Argentina) (b)(e) 1,400 0 Telefonica SA (Spain) 16,040 461 ------------ 461 ------------ IT CONSULTING & OTHER SERVICES--0.6% Accenture Ltd. Class A (United States) 16,530 581 ------------
VALUE SHARES (000) ------- ------------ PACKAGED FOODS & MEATS--1.3% Cadbury Schweppes plc Sponsored ADR (United Kingdom) 17,280 $ 764 Unilever N.V. (Netherlands) 14,290 480 ------------ 1,244 ------------ PHARMACEUTICALS--0.5% Elan Corp. plc ADR (Ireland) (b) 23,260 485 ------------ REINSURANCE--0.9% Arch Capital Group Ltd. (United States) (b) 3,470 238 PartnerRe Ltd. (United States) 7,430 567 ------------ 805 ------------ SYSTEMS SOFTWARE--0.5% Check Point Software Technologies Ltd. (United States) (b) 19,270 432 ------------ TOBACCO--0.5% British American Tobacco plc (United Kingdom) 12,500 469 ------------ ------------------------------------------------------------------------------------ TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $9,970) 9,896 ------------------------------------------------------------------------------------ TOTAL LONG TERM INVESTMENTS--89.4% (IDENTIFIED COST $86,104) 84,463 ------------------------------------------------------------------------------------
PAR VALUE (000) ------- SHORT-TERM INVESTMENTS--9.5% COMMERCIAL PAPER(d)--9.5% AT&T, Inc. 2.300% due 4/1/08 $ 2,100 2,100 Cintas Corp. 2.400% due 4/2/08 660 660 Govco LLC 2.750% due 4/1/08 4,005 4,005 Praxair, Inc. 2.200% due 4/4/08 2,260 2,260 ------------------------------------------------------------------------------------ TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $9,025) 9,025 ------------------------------------------------------------------------------------ TOTAL INVESTMENTS--98.9% (IDENTIFIED COST $95,129) 93,488(a) SECURITIES SOLD SHORT--(87.7)% (PROCEEDS $84,055) (82,871) Other assets and liabilities, net--88.8% 83,909 ------------ NET ASSETS--100.0% $ 94,526 ============
SHARES ------- SECURITIES SOLD SHORT--87.7% DOMESTIC COMMON STOCKS SOLD SHORT--81.3% ADVERTISING--0.5% Lamar Advertising Co. Class A 12,680 456 ------- ------------
VALUE SHARES (000) ------- ------------ AGRICULTURAL PRODUCTS--0.9% Bunge Ltd. 2,820 $ 245 Corn Products International, Inc. 17,600 654 ------------ 899 ------------ AIR FREIGHT & LOGISTICS--1.1% Robinson (C.H.) Worldwide, Inc. 11,070 602 United Parcel Service, Inc. Class B 6,530 477 ------------ 1,079 ------------ AIRLINES--0.8% Alaska Air Group, Inc. 16,070 315 Southwest Airlines Co. 32,630 405 ------------ 720 ------------ AIRPORT SERVICES--0.4% Macquarie Infrastructure Co. LLC 13,530 394 ------------ ALUMINUM--0.3% Alcoa, Inc. 6,680 241 ------------ APPAREL RETAIL--1.4% Aeropostale, Inc. 31,710 860 Crew (J.) Group, Inc. 11,000 486 ------------ 1,346 ------------ APPAREL, ACCESSORIES & LUXURY GOODS--0.7% Quiksilver, Inc. 69,260 679 ------------ APPLICATION SOFTWARE--1.0% Autodesk, Inc. 10,860 342 Citrix Systems, Inc. 9,960 292 JDA Software Group, Inc. 18,350 335 ------------ 969 ------------ ASSET MANAGEMENT & CUSTODY BANKS--1.1% Janus Capital Group, Inc. 25,110 584 Legg Mason, Inc. 7,630 427 ------------ 1,011 ------------ BROADCASTING & CABLE TV--1.5% CBS Corp. Class B 19,250 425 Comcast Corp. Class A 50,370 974 ------------ 1,399 ------------ BUILDING PRODUCTS--1.0% Simpson Manufacturing Co., Inc. 35,960 977 ------------ COAL & CONSUMABLE FUELS--1.0% Patriot Coal Corp. 19,500 916 ------------ COMMODITY CHEMICALS--0.2% Westlake Chemical Corp. 11,250 147 ------------
See Notes to Financial Statements 12 PHOENIX MARKET NEUTRAL FUND
VALUE SHARES (000) ------- ----------- COMMUNICATIONS EQUIPMENT--1.6% CommScope, Inc. 8,470 $ 295 Corning, Inc. 11,060 266 F5 Networks, Inc. 14,030 255 JDS Uniphase Corp. 21,280 285 Juniper Networks, Inc. 15,970 399 ----------- 1,500 ----------- COMPUTER & ELECTRONICS RETAIL--0.8% Best Buy Co., Inc. 17,620 731 ----------- COMPUTER HARDWARE--0.6% NCR Corp. 25,620 585 ----------- CONSTRUCTION & ENGINEERING--1.3% EMCOR Group, Inc. 15,320 340 Fluor Corp. 4,220 596 Furmanite Corp. 29,950 255 ----------- 1,191 ----------- CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--2.6% Caterpillar, Inc. 7,330 574 Joy Global, Inc. 9,430 614 Manitowoc Co., Inc. (The) 20,190 824 Wabtec Corp. 12,910 486 ----------- 2,498 ----------- CONSTRUCTION MATERIALS--0.5% James Hardie Industries NV 85,380 488 ----------- DEPARTMENT STORES--0.8% Nordstrom, Inc. 12,890 420 Sears Holdings Corp. 3,620 370 ----------- 790 ----------- DISTILLERS & VINTNERS--2.1% Brown-Forman Corp. Class B 18,860 1,249 Constellation Brands, Inc. Class A 40,470 715 ----------- 1,964 ----------- DISTRIBUTORS--1.0% LKQ Corp. 43,190 971 ----------- DIVERSIFIED CHEMICALS--0.3% Eastman Chemical Co. 3,880 242 ----------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--1.7% Corrections Corporation of America 21,250 585 Healthcare Services Group, Inc. 25,050 517 Ritchie Bros. Auctioneers, Inc. 6,440 529 ----------- 1,631 ----------- FERTILIZERS & AGRICULTURAL CHEMICALS--1.0% Scotts Co. (The) Class A 30,040 974 ----------- FOREST PRODUCTS--0.2% Weyerhaeuser Co. 3,620 235 -----------
VALUE SHARES (000) ------- ----------- GAS UTILITIES--2.3% Energysouth, Inc. 20,360 $ 1,063 National Fuel Gas Co. 22,950 1,083 ----------- 2,146 ----------- HEALTH CARE DISTRIBUTORS--0.2% Cardinal Health, Inc. 3,550 186 ----------- HEALTH CARE EQUIPMENT--5.6% Bard (C.R.), Inc. 9,130 880 Gen-Probe, Inc. 9,510 458 IDEXX Laboratories, Inc. 25,370 1,250 Kinetic Concepts, Inc. 5,050 234 Nobel Biocare Holding AG 1,630 379 ResMed, Inc. 14,080 594 Stryker Corp. 16,450 1,070 William Demant Holding 5,540 443 ----------- 5,308 ----------- HEALTH CARE SERVICES--1.0% Chemed Corp. 11,290 477 Lincare Holdings, Inc. 17,860 502 ----------- 979 ----------- HEALTH CARE SUPPLIES--2.4% Edwards Lifesciences Corp. 18,170 809 Inverness Medical Innovations, Inc. 3,750 113 Medical Action Industries, Inc. 30,070 494 Merit Medical Systems, Inc. 54,500 863 ----------- 2,279 ----------- HEALTH CARE TECHNOLOGY--0.2% IMS Health, Inc. 10,040 211 ----------- HOME FURNISHINGS--0.5% Mohawk Industries, Inc. 6,540 468 ----------- HOTELS, RESORTS & CRUISE LINES--0.4% Intercontinental Hotels Group plc 26,410 398 ----------- HOUSEHOLD APPLIANCES--0.6% Husqvarna AB 45,300 545 ----------- HUMAN RESOURCES & EMPLOYMENT SERVICES--0.5% TrueBlue, Inc. 36,590 492 ----------- INDUSTRIAL MACHINERY--1.9% Donaldson Co., Inc. 18,170 732 Mueller Water Products, Inc. 68,840 563 Parker Hannifin Corp. 7,060 489 ----------- 1,784 ----------- INTEGRATED TELECOMMUNICATION SERVICES--1.5% Alaska Communications Systems Holdings, Inc. 52,130 638 Iowa Telecommunications Services, Inc. 46,500 825 ----------- 1,463 -----------
VALUE SHARES (000) ------- ----------- INTERNET SOFTWARE & SERVICES--1.3% Equinix, Inc. 5,980 $ 398 Google, Inc. Class A 1,120 493 VeriSign, Inc. 9,260 308 ----------- 1,199 ----------- INVESTMENT BANKING & BROKERAGE--0.7% E*TRADE Financial Corp. 170,680 659 ----------- IT CONSULTING & OTHER SERVICES--0.3% Cognizant Technology Solutions Corp. Class A 9,320 269 ----------- LEISURE FACILITIES--0.4% Life Time Fitness, Inc. 11,410 356 ----------- LEISURE PRODUCTS--0.3% Pool Corp. 14,830 280 ----------- LIFE & HEALTH INSURANCE--1.1% Unum Group 45,160 994 ----------- LIFE SCIENCES TOOLS & SERVICES--0.5% Amag Pharmaceuticals, Inc. 3,240 131 Millipore Corp. 2,090 141 Pharmaceutical Product Development, Inc. 4,470 187 ----------- 459 ----------- MANAGED HEALTH CARE--0.1% Health Net, Inc. 4,360 134 ----------- MARINE--1.1% Alexander & Baldwin, Inc. 19,640 846 Dryships, Inc. 3,860 231 ----------- 1,077 ----------- MOTORCYCLE MANUFACTURERS--0.7% Harley-Davidson, Inc. 18,370 689 ----------- MULTI-LINE INSURANCE--0.4% Genworth Financial, Inc. Class A 15,910 360 ----------- OFFICE REITS--0.7% SL Green Realty Corp. 7,660 624 ----------- OFFICE SERVICES & SUPPLIES--0.3% ACCO Brands Corp. 18,900 256 ----------- OIL & GAS EQUIPMENT & SERVICES--1.9% Baker Hughes, Inc. 12,700 870 FMC Technologies, Inc. 16,740 952 ----------- 1,822 ----------- PACKAGED FOODS & MEATS--5.1% Cal-Maine Foods, Inc. 13,680 457 Flowers Foods, Inc. 40,900 1,012 Groupe Danone 5,490 491 Hain Celestial Group, Inc. (The) 29,170 860 Hormel Foods Corp. 22,250 927
See Notes to Financial Statements 13 PHOENIX MARKET NEUTRAL FUND
VALUE SHARES (000) ------- ----------- PACKAGED FOODS & MEATS--(CONTINUED) Wrigley (Wm.) Jr. Co. 16,790 $ 1,055 ----------- 4,802 ----------- PERSONAL PRODUCTS--1.0% Chattem, Inc. 14,020 930 ----------- PHARMACEUTICALS--1.0% Allergan, Inc. 7,110 401 Medicis Pharmaceutical Corp. Class A 27,050 533 ----------- 934 ----------- PROPERTY & CASUALTY INSURANCE--1.0% Allstate Corp. (The) 9,780 470 Safeco Corp. 10,170 446 ----------- 916 ----------- REGIONAL BANKS--6.0% Bank of Hawaii Corp. 23,580 1,169 City National Corp. 5,120 253 Fifth Third Bancorp 13,410 281 First Horizon National Corp. 18,690 262 Frontier Financial Corp. 25,290 447 KeyCorp 33,180 728 Privatebancorp, Inc. 7,990 251 Prosperity Bancshares, Inc. 33,900 972 TCF Financial Corp. 20,880 374 Westamerica Bancorp 17,480 919 ----------- 5,656 ----------- RESTAURANTS--3.5% Cheesecake Factory, Inc. (The) 27,590 601 Sonic Corp. 77,260 1,703 Starbucks Corp. 33,730 590 Yum! Brands, Inc. 10,720 399 ----------- 3,293 ----------- SEMICONDUCTORS--0.3% Broadcom Corp. Class A 17,160 331 ----------- SOFT DRINKS--1.3% Coca-Cola Co. (The) 20,180 1,228 ----------- SPECIALTY CHEMICALS--1.1% Sensient Technologies Corp. 33,730 995 -----------
VALUE SHARES (000) ------- ----------- SPECIALTY STORES--2.9% Dick's Sporting Goods, Inc. 28,620 $ 766 Office Depot, Inc. 44,570 492 PetSmart, Inc. 34,910 714 Sally Beauty Holdings, Inc. 111,420 769 ----------- 2,741 ----------- SYSTEMS SOFTWARE--0.3% VMware, Inc. Class A 6,020 258 ----------- THRIFTS & MORTGAGE FINANCE--1.1% Countrywide Financial Corp. 117,270 645 Sovereign Bancorp, Inc. 44,990 419 ----------- 1,064 ----------- TRADING COMPANIES & DISTRIBUTORS--0.7% Fastenal Co. 14,090 647 ----------- TRUCKING--0.8% Werner Enterprises, Inc. 42,630 791 ----------- WATER UTILITIES--1.6% Aqua America Inc. 57,350 1,077 SJW Corp. 13,980 400 ----------- 1,477 ----------- WIRELESS TELECOMMUNICATION SERVICES--0.3% MetroPCS Communications, Inc. 17,140 291 ----------- ----------------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS SOLD SHORT (PROCEEDS $77,648) 76,824 ----------------------------------------------------------------------------------- FOREIGN COMMON STOCKS(c)--6.4% AEROSPACE & DEFENSE--0.6% Empresa Brasileria de Aeronautica S.A. ADR (Brazil) 13,740 543 ----------- AUTOMOBILE MANUFACTURERS--0.6% Isuzu Motors Ltd. (Japan) 111,000 554 ----------- CONSUMER ELECTRONICS--0.3% Garmin Ltd. (United States) 5,150 278 ----------- DISTILLERS & VINTNERS--0.5% Pernod-Ricard SA (France) 4,280 440 -----------
VALUE SHARES (000) ------- ----------- HOTELS, RESORTS & CRUISE LINES--0.4% Orient-Express Hotel Ltd. Class A (Bermuda) 8,960 $ 387 ----------- INTEGRATED TELECOMMUNICATION SERVICES--0.5% Tele2 AB B Shares (Sweden) 26,100 493 ----------- IT CONSULTING & OTHER SERVICES--0.5% Nomura Research Institute Ltd. (Japan) 17,900 468 ----------- MARINE--0.7% Diana Shipping, Inc. (Greece) 25,110 661 ----------- PHARMACEUTICALS--0.5% AstraZeneca plc Sponsored ADR (United Kingdom) 3,700 140 GlaxoSmithKline plc Sponsored ADR (United Kingdom) 7,700 327 ----------- 467 ----------- PROPERTY & CASUALTY INSURANCE--0.3% XL Capital Ltd. Class A (United States) 11,230 332 ----------- RESTAURANTS--0.5% Tim Hortons, Inc. (United States) 12,710 433 ----------- TOBACCO--0.4% Imperial Tobacco Group plc ADR (United Kingdom) 4,690 432 ----------- WATER UTILITIES--0.6% Consolidated Water Co. Ltd. (Cayman Islands) 25,360 559 ----------- ----------------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (PROCEEDS $6,407) 6,047 ----------------------------------------------------------------------------------- TOTAL SECURITIES SOLD SHORT (PROCEEDS $84,055) 82,871(f) -----------------------------------------------------------------------------------
FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): Net unrealized depreciation of investment securities is comprised of gross appreciation of $2,664 and gross depreciation of $4,603 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $95,427. (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. At March 31, 2008, this security amountedto 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 000s): Net unrealized appreciation of securities sold short is comprised of gross appreciation of $3,945, and gross depreciation of $2,839 for federal income tax purposes. At March 31, 2008, the aggregate proceeds of securities sold short for federal income tax purposes was $(83,977). See Notes to Financial Statements 14 PHOENIX DIVERSIFIER PHOLIO(SM) SCHEDULE OF INVESTMENTS MARCH 31, 2008 (UNAUDITED)
VALUE SHARES (000) --------- ------------- MUTUAL FUNDS--55.2% DOMESTIC EQUITY FUNDS(c)--40.7% Phoenix Market Neutral Fund Class A 5,980,614 $ 61,361 Phoenix Real Estate Securities Fund Class A 1,288,012 37,378 ------------- 98,739 ------------- FOREIGN EQUITY FUND(c)--14.5% Phoenix Global Utilities Fund Class A 2,762,507 35,167 -------------------------------------------------------------------------------- TOTAL MUTUAL FUNDS (IDENTIFIED COST $138,724) 133,906 -------------------------------------------------------------------------------- EXCHANGE TRADED FUNDS--44.2% iShares S&P North American Natural Resources Sector Index Fund 192,155 24,538 PowerShares DB Commodity Index Tracking Fund (b) 994,250 35,793 PowerShares DB G10 Currency Harvest Fund (b) 653,680 16,819 SPDR DJ Wilshire International Real Estate Exchange Tracking Fund 569,560 30,101 -------------------------------------------------------------------------------- TOTAL EXCHANGE TRADED FUNDS (IDENTIFIED COST $97,121) 107,251 -------------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--99.4% (IDENTIFIED COST $235,845) 241,157 --------------------------------------------------------------------------------
PAR VALUE (000) --------- SHORT-TERM INVESTMENTS--0.5% COMMERCIAL PAPER(d)--0.5% Eaton Corp. 2.750% due 4/1/08 $ 1,185 1,185 -------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $1,185) 1,185 -------------------------------------------------------------------------------- TOTAL INVESTMENTS--99.9% (IDENTIFIED COST $237,030) 242,342(a) Other assets and liabilities, net--0.1% 247 ------------- NET ASSETS--100.0% $ 242,589 =============
FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): Net unrealized appreciation of investment securities is comprised of gross appreciation of $12,130 and gross depreciation of $9,983 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $240,195. (b) Non-income producing. (c) Affiliated Fund. (d) The rate shown is the discount rate. See Notes to Financial Statements 15 PHOENIX WEALTH ACCUMULATOR PHOLIO(SM) SCHEDULE OF INVESTMENTS MARCH 31, 2008 (UNAUDITED)
VALUE SHARES (000) -------- ------------- MUTUAL FUNDS--99.7% DOMESTIC EQUITY FUNDS(c)--70.8% Phoenix Capital Growth Fund Class A (b) 64,149 $ 962 Phoenix Growth & Income Fund Class A 113,813 1,875 Phoenix Growth Opportunities Fund Class A (b) 64,231 885 Phoenix Market Neutral Fund Class A 91,214 936 Phoenix Mid-Cap Value Fund Class A 27,576 614 Phoenix Quality Small-Cap Fund Class A 30,132 291 Phoenix Real Estate Securities Fund Class A 20,768 603 Phoenix Small Cap Value Fund Class A (b) 25,826 296 Phoenix Small-Cap Growth Fund Class A (b) 9,390 284 Phoenix Small-Cap Sustainable Growth Fund Class A (b) 33,796 309 Phoenix Value Opportunities Fund Class A 162,645 1,709 ------------- 8,764 ------------- FOREIGN EQUITY FUNDS(c)--28.9% Phoenix Foreign Opportunities Fund Class A 38,195 982 Phoenix Global Utilities Fund Class A 38,851 495 Phoenix International Real Estate Securities Fund Class A 68,620 595 Phoenix International Strategies Fund Class A 111,489 1,508 ------------- 3,580 ----------------------------------------------------------------------------------------- TOTAL MUTUAL FUNDS (IDENTIFIED COST $12,888) 12,344 ----------------------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--99.7% (IDENTIFIED COST $12,888) 12,344 ----------------------------------------------------------------------------------------- TOTAL INVESTMENTS--99.7% (IDENTIFIED COST $12,888) 12,344(a) Other assets and liabilities, net--0.3% 43 ------------- NET ASSETS--100.0% $ 12,387 =============
FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): Net unrealized depreciation of investment securities is comprised of gross appreciation of $179 and gross depreciation of $800 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $12,965. (b) Non-income producing. (c) Affiliated Fund. See Notes to Financial Statements 16 PHOENIX WEALTH BUILDER PHOLIO(SM) SCHEDULE OF INVESTMENTS MARCH 31, 2008 (UNAUDITED)
VALUE SHARES (000) --------- ------------ MUTUAL FUNDS--99.9% DOMESTIC EQUITY FUNDS(c)--54.8% Phoenix Capital Growth Fund Class A (b) 415,676 $ 6,235 Phoenix Growth & Income Fund Class A 755,600 12,445 Phoenix Growth Opportunities Fund Class A (b) 438,569 6,043 Phoenix Market Neutral Fund Class A 823,009 8,444 Phoenix Mid-Cap Value Fund Class A 196,208 4,369 Phoenix Quality Small-Cap Fund Class A 205,926 1,989 Phoenix Real Estate Securities Fund Class A 167,119 4,850 Phoenix Small Cap Value Fund Class A (b) 193,815 2,221 Phoenix Small-Cap Growth Fund Class A (b) 68,772 2,082 Phoenix Small-Cap Sustainable Growth Fund Class A (b) 233,293 2,135 Phoenix Value Opportunities Fund Class A 1,062,565 11,168 ------------ 61,981 ------------ FOREIGN EQUITY FUNDS(c)--23.9% Phoenix Foreign Opportunities Fund Class A 261,061 6,712 Phoenix Global Utilities Fund Class A 350,663 4,464 Phoenix International Real Estate Securities Fund Class A 556,650 4,826 Phoenix International Strategies Fund Class A 809,141 10,948 ------------ 26,950 ------------ DOMESTIC FIXED INCOME FUNDS(c)--21.2% Phoenix Bond Fund Class A 936,911 9,622 Phoenix Insight High Yield Bond Fund Class A 204,122 2,290 Phoenix Institutional Bond Fund Class Y 314,079 9,702 Phoenix Multi-Sector Short Term Bond Fund Class A 521,748 2,374 ------------ 23,988 -------------------------------------------------------------------------------------------- TOTAL MUTUAL FUNDS (IDENTIFIED COST $109,334) 112,919 -------------------------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--99.9% (IDENTIFIED COST $109,334) 112,919 --------------------------------------------------------------------------------------------
PAR VALUE VALUE (000) (000) --------- ------------ SHORT-TERM INVESTMENTS--0.2% COMMERCIAL PAPER(d)--0.2% Eaton Corp. 2.750% due 4/1/08 $ 265 $ 265 -------------------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $265) 265 -------------------------------------------------------------------------------------------- TOTAL INVESTMENTS--100.1% (IDENTIFIED COST $109,599) 113,184(a) Other assets and liabilities, net--(0.1)% (121) ------------ NET ASSETS--100.0% $ 113,063 ============
FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): Net unrealized appreciation of investment securities is comprised of gross appreciation of $8,865 and gross depreciation of $5,913 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $110,232. (b) Non-income producing. (c) Affiliated Fund. (d) The rate shown is the discount rate. See Notes to Financial Statements 17 PHOENIX WEALTH GUARDIAN PHOLIO(SM) SCHEDULE OF INVESTMENTS MARCH 31, 2008 (UNAUDITED)
VALUE SHARES (000) ------ ------------ MUTUAL FUNDS--99.6% DOMESTIC EQUITY FUNDS(c)--42.3% Phoenix Capital Growth Fund Class A (b) 156,889 $ 2,353 Phoenix Growth & Income Fund Class A 275,892 4,544 Phoenix Growth Opportunities Fund Class A (b) 157,775 2,174 Phoenix Market Neutral Fund Class A 341,627 3,505 Phoenix Mid-Cap Value Fund Class A 70,158 1,563 Phoenix Quality Small-Cap Fund Class A 74,433 719 Phoenix Real Estate Securities Fund Class A 50,207 1,457 Phoenix Small Cap Value Fund Class A (b) 64,976 745 Phoenix Small-Cap Growth Fund Class A (b) 24,120 730 Phoenix Small-Cap Sustainable Growth Fund Class A (b) 84,462 773 Phoenix Value Opportunities Fund Class A 421,708 4,432 ------------ 22,995 ------------ FOREIGN EQUITY FUNDS(c)--16.4% Phoenix Foreign Opportunities Fund Class A 80,602 2,072 Phoenix Global Utilities Fund Class A 83,584 1,064 Phoenix International Real Estate Securities Fund Class A 157,343 1,364 Phoenix International Strategies Fund Class A 326,117 4,413 ------------ 8,913 ------------ DOMESTIC FIXED INCOME FUNDS(c)--40.9% Phoenix Bond Fund Class A 875,517 8,992 Phoenix Insight High Yield Bond Fund Class A 193,248 2,168 Phoenix Institutional Bond Fund Class Y 285,699 8,825 Phoenix Multi-Sector Short Term Bond Fund Class A 488,421 2,222 ------------ 22,207 -------------------------------------------------------------------------------------------------- TOTAL MUTUAL FUNDS (IDENTIFIED COST $53,485) 54,115 -------------------------------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--99.6% (IDENTIFIED COST $53,485) 54,115 -------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS--99.6% (IDENTIFIED COST $53,485) 54,115(a) Other assets and liabilities, net--0.4% 237 ------------ NET ASSETS--100.0% $ 54,352 ============
FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): Net unrealized appreciation of investment securities is comprised of gross appreciation of $2,731 and gross depreciation of $2,520 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $53,904. (b) Non-income producing. (c) Affiliated Fund. See Notes to Financial Statements 18 PHOENIX BOND FUND SCHEDULE OF INVESTMENTS MARCH 31, 2008 (UNAUDITED)
PAR VALUE VALUE (000) (000) --------- --------- U.S. GOVERNMENT SECURITIES--24.0% U.S. TREASURY BONDS--1.1% U.S. Treasury Bond 6.250% due 8/15/23 $ 670 $ 825 --------- U.S. TREASURY NOTES--22.9% U.S. Treasury Note 4.875% due 5/15/09 9,965 10,329 2.750% due 2/28/13 3,785 3,837 4.750% due 8/15/17 2,115 2,340 --------- 16,506 ---------------------------------------------------------------------------- TOTAL U.S. GOVERNMENT SECURITIES (IDENTIFIED COST $17,088) 17,331 ---------------------------------------------------------------------------- AGENCY MORTGAGE-BACKED SECURITIES--37.4% FHLMC 7.500% due 7/1/09 6 6 7.500% due 4/1/14 45 48 7.000% due 4/1/16 31 33 7.000% due 1/1/33 276 292 5.980% due 2/1/34 (c) 124 126 4.500% due 4/1/37 5,263 5,079 FHLMC 2503 B 5.500% due 9/15/17 281 292 FHLMC 2764 HW 5.000% due 3/15/19 455 459 FNMA 7.000% due 5/1/14 31 33 8.000% due 1/1/15 6 6 5.000% due 12/1/22 5,211 5,265 7.162% due 7/1/33 (c) 60 60 6.905% due 9/1/33 (c) 65 66 6.737% due 11/1/33 (c) 128 131 6.349% due 12/1/33 (c) 63 64 5.543% due 3/1/34 (c) 118 120 5.436% due 4/1/34 (c) 108 110 4.500% due 1/1/35 447 432 5.262% due 5/1/35 (c) 3,065 3,129 5.000% due 2/1/37 5,921 5,867 5.000% due 3/1/37 5,406 5,355 ---------------------------------------------------------------------------- TOTAL AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $26,691) 26,973 ---------------------------------------------------------------------------- DOMESTIC CORPORATE BONDS--19.9% AIR FREIGHT & LOGISTICS--0.3% United Parcel Service, Inc. 5.500% due 1/15/18 185 195 --------- APPLICATION SOFTWARE--0.2% Intuit, Inc. 5.750% due 3/15/17 155 150 --------- ASSET MANAGEMENT & CUSTODY BANKS--0.3% Janus Capital Group, Inc. 6.250% due 6/15/12 120 122 State Street Capital Trust III 8.250% due 12/29/49 (c) 65 65 --------- 187 ---------
PAR VALUE VALUE (000) (000) --------- --------- BROADCASTING & CABLE TV--0.6% Clear Channel Communications, Inc. 7.650% due 9/15/10 155 $ 164 United Artists Theatre Circuit, Inc. Series BD-1 9.300% due 7/1/15 (e) 10 10 Viacom, Inc. 5.750% due 4/30/11 225 227 --------- 401 --------- COMMERCIAL PRINTING--0.3% Donnelley (R.R.) & Sons Co. 5.625% due 1/15/12 105 104 6.125% due 1/15/17 105 96 --------- 200 --------- COMMUNICATIONS EQUIPMENT--0.4% Cisco Systems, Inc. 5.500% due 2/22/16 300 310 --------- CONSUMER FINANCE--2.0% American Express Co. 6.150% due 8/28/17 145 144 7.000% due 3/19/18 150 157 American General Finance Corp. 4.000% due 3/15/11 450 425 5.750% due 9/15/16 180 166 Capital One Financial Corp. 5.700% due 9/15/11 215 203 6.150% due 9/1/16 260 218 John Deere Capital Corp. 5.350% due 4/3/18 100 100 --------- 1,413 --------- DATA PROCESSING & OUTSOURCED SERVICES--0.5% Fiserv, Inc. 6.125% due 11/20/12 345 356 --------- DIVERSIFIED BANKS--0.4% Wells Fargo & Co. 5.125% due 9/15/16 275 272 --------- ELECTRIC UTILITIES--0.7% Appalachian Power Co. 5.550% due 4/1/11 285 291 Nevada Power Co. Series R 6.750% due 7/1/37 110 106 Reliant Energy, Inc. 6.750% due 12/15/14 125 128 --------- 525 --------- FOOD RETAIL--0.6% Safeway, Inc. 6.500% due 3/1/11 425 452 --------- GAS UTILITIES--0.3% Atmos Energy Corp. 6.350% due 6/15/17 190 194 ---------
PAR VALUE VALUE (000) (000) --------- --------- HEALTH CARE SERVICES--0.2% Quest Diagnostics, Inc. 6.400% due 7/1/17 150 $ 151 --------- HOME FURNISHINGS--0.2% Mohawk Industries, Inc. 5.750% due 1/15/11 150 159 --------- HYPERMARKETS & SUPER CENTERS--0.2% Costco Wholesale Corp. 5.500% due 3/15/17 165 171 --------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS--0.5% MidAmerican Energy Co. 5.650% due 7/15/12 145 153 5.800% due 10/15/36 245 233 --------- 386 --------- INTEGRATED OIL & GAS--1.5% Conoco Funding Co. 6.350% due 10/15/11 1,000 1,090 --------- INTEGRATED TELECOMMUNICATION SERVICES--1.1% AT&T, Inc. 6.250% due 3/15/11 420 440 Verizon Communications, Inc. 5.500% due 2/15/18 390 380 --------- 820 --------- INVESTMENT BANKING & BROKERAGE--1.3% Bear Stearns Cos., Inc. (The) 7.250% due 2/1/18 245 253 Lehman Brothers Holdings, Inc. 5.750% due 1/3/17 240 217 Merrill Lynch & Co., Inc. 6.400% due 8/28/17 240 237 UBS Preferred Funding Trust V 6.243% due 5/29/49 (c) 260 217 --------- 924 --------- LIFE & HEALTH INSURANCE--1.0% Lincoln National Corp. 5.650% due 8/27/12 415 423 6.050% due 4/20/67 (c) 50 44 Protective Life Secured Trust 4.000% due 4/1/11 300 292 --------- 759 --------- MANAGED HEALTH CARE--0.6% Wellpoint, Inc. 5.000% due 1/15/11 400 404 --------- MULTI-LINE INSURANCE--0.4% Genworth Financial, Inc. 6.150% due 11/15/66 (c) 135 113 Genworth Global Funding Trusts 5.125% due 3/15/11 160 164 --------- 277 ---------
See Notes to Financial Statements 19 PHOENIX BOND FUND
PAR VALUE VALUE (000) (000) --------- --------- OFFICE REITS--0.1% Duke Realty LP 5.625% due 8/15/11 $ 75 $ 72 --------- OFFICE SERVICES & SUPPLIES--0.3% IKON Office Solutions, Inc. 7.750% due 9/15/15 235 224 --------- OIL & GAS EXPLORATION & PRODUCTION--0.8% EOG Resources, Inc. 5.875% due 9/15/17 290 304 XTO Energy, Inc. 5.900% due 8/1/12 295 308 --------- 612 --------- OIL & GAS STORAGE & TRANSPORTATION--0.8% Enbridge Energy Partners LP 5.875% due 12/15/16 120 119 Energy Transfer Partners LP 6.700% due 7/1/18 240 242 Kinder Morgan Energy Partners LP 5.850% due 9/15/12 145 149 Pacific Energy Partners LP/Pacific Energy Finance Corp. 6.250% due 9/15/15 75 74 --------- 584 --------- OTHER DIVERSIFIED FINANCIAL SERVICES--2.1% Bank of America Corp. 8.000% due 12/29/49 (c) 235 235 Citigroup, Inc. 5.000% due 9/15/14 290 273 ConocoPhillips Canada Funding Co. 5.625% due 10/15/16 230 241 General Electric Capital Corp. 6.375% due 11/15/67 (c) 260 255 International Lease Finance Corp. 5.625% due 9/20/13 130 127 JPMorgan Chase & Co. 5.750% due 1/2/13 350 366 --------- 1,497 --------- PACKAGED FOODS & MEATS--0.2% General Mills, Inc. 5.650% due 9/10/12 130 135 --------- PAPER PRODUCTS--0.1% Exopac Holding Corp. 11.250% due 2/1/14 45 41 --------- PRECIOUS METALS & MINERALS--0.1% PNA Group, Inc. 10.750% due 9/1/16 55 48 --------- PROPERTY & CASUALTY INSURANCE--0.2% Chubb Corp. 6.375% due 3/29/37 (c) 165 154 --------- REGIONAL BANKS--0.3% Credit Suisse First Boston 6.000% due 2/15/18 240 239 ---------
PAR VALUE VALUE (000) (000) --------- --------- RESIDENTIAL REITS--0.5% AvalonBay Communities, Inc. 5.750% due 9/15/16 145 $ 131 ERP Operating LP 5.375% due 8/1/16 270 240 --------- 371 --------- RESTAURANTS--0.4% Starbucks Corp. 6.250% due 8/15/17 300 313 --------- RETAIL REITS--0.3% Simon Property Group LP 5.600% due 9/1/11 235 235 --------- SPECIALTY CHEMICALS--0.1% Huntsman International LLC 7.875% due 11/15/14 15 16 7.375% due 1/1/15 20 21 --------- 37 ------------------------------------------------------------------------- TOTAL DOMESTIC CORPORATE BONDS (IDENTIFIED COST $14,391) 14,358 ------------------------------------------------------------------------- NON-AGENCY MORTGAGE-BACKED SECURITIES--10.8% Banc of America Commercial Mortgage, Inc. 00-1, A1A 7.109% due 11/15/31 15 15 Banc of America Funding Corp. 07-E, 6A1 6.201% due 9/20/37 (c) 673 637 Banc of America Funding Corp. 07-E, 9A1 6.304% due 9/20/37 (c) 1,346 1,257 Citigroup Mortgage Loan Trust, Inc. 04-NCM2, 2CB3 8.000% due 8/25/34 59 59 HSBC Asset Loan Obligation 07-AR2, 4A1 6.125% due 9/25/37 (c) 861 775 Master Asset Securitization Trust Alternative Loans Trust 03-7, 5A1 6.250% due 11/25/33 171 157 Master Asset Securitization Trust Alternative Loans Trust 04-1, 3A1 7.000% due 1/25/34 122 122 Master Asset Securitization Trust Alternative Loans Trust 04-5, 6A1 7.000% due 6/25/34 80 81 Master Asset Securitization Trust Alternative Loans Trust 04-6, 6A1 6.500% due 7/25/34 508 505 Merrill Lynch Mortgage Trust 05-MCP1, A2 4.556% due 6/12/43 725 713 Morgan Stanley Mortgage Loan Trust 04-3, 3A 6.000% due 4/25/34 629 640 Residential Asset Mortgage Products, Inc. 04-SL3, A4 8.500% due 12/25/31 298 308
PAR VALUE VALUE (000) (000) --------- --------- Washington Mutual Mortgage Pass-Through Certificates 07-HY3, 3A3 5.855% due 3/25/37 (c) 2,805 $ 2,530 ------------------------------------------------------------------------- TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $8,318) 7,799 ------------------------------------------------------------------------- FOREIGN CORPORATE BONDS(d)--6.3% CANADA--1.7% CHC Helicopter Corp. 7.375% due 5/1/14 60 60 Husky Energy, Inc. 6.200% due 9/15/17 275 282 Suncor Energy, Inc. 6.500% due 6/15/38 205 202 TransCanada Pipelines Ltd. 6.350% due 5/15/67 (c) 105 93 Xstrata Finance Canada Ltd. 144A (b) 5.800% due 11/15/16 370 357 6.900% due 11/15/37 255 247 --------- 1,241 --------- ITALY--0.2% Telecom Italia Capital SA 5.250% due 10/1/15 155 141 --------- JAPAN--0.4% Resona Bank Ltd. 144A 5.850% due 9/29/49 (b)(c) 345 287 --------- NETHERLANDS--0.6% ING Groep N.V. 5.775% due 12/29/49 (c) 535 456 --------- SPAIN--1.2% Santander Issuances S.A. Unipersonal 144A 5.911% due 6/20/16 (b) 410 405 Telefonica Emisiones S.A. 5.984% due 6/20/11 435 448 --------- 853 --------- SWITZERLAND--0.3% Credit Suisse Guernsey Ltd. 5.860% due 5/29/49 (c) 275 233 --------- UNITED KINGDOM--1.0% Diageo Capital plc 5.750% due 10/23/17 145 148 HBOS plc 144A 6.657% due 11/21/49 (b)(c) 400 286 Royal Bank of Scotland Group plc 144A 6.990% due 10/29/49 (b)(c) 335 285 --------- 719 ---------
See Notes to Financial Statements 20 PHOENIX BOND FUND
PAR VALUE VALUE (000) (000) ---------- --------- UNITED STATES--0.9% Tyco Electronic Group SA 144A 6.000% due 10/1/12 (b) $ 285 $ 292 WEA Finance LLC/WCI Finance LLC 144A 5.700% due 10/1/16 (b) 375 339 --------- 631 -------------------------------------------------------------------- TOTAL FOREIGN CORPORATE BONDS (IDENTIFIED COST $4,944) 4,561 -------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--98.4% (IDENTIFIED COST $71,432) 71,022 -------------------------------------------------------------------- SHORT-TERM INVESTMENTS--6.6% FEDERAL AGENCY SECURITIES(f)--6.6% FHLB 1.500% due 4/1/08 4,800 4,800 --------- -------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $4,800) 4,800 -------------------------------------------------------------------- TOTAL INVESTMENTS--105.0% (IDENTIFIED COST $76,232) 75,822(a) Other assets and liabilities, net--(5.0)% (3,614) --------- NET ASSETS--100.0% $ 72,208 =========
FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): Net unrealized depreciation of investment securities is comprised of gross appreciation of $858 and gross depreciation of $1,337 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $76,301. (b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2008, these securities amounted to a value of $2,498 (reported in 000s) or 3.5% 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) Illiquid security. (f) The rate shown is the discount rate. See Notes to Financial Statements 21 PHOENIX CA TAX-EXEMPT BOND FUND SCHEDULE OF INVESTMENTS MARCH 31, 2008 (UNAUDITED)
PAR VALUE VALUE (000) (000) --------- --------- MUNICIPAL TAX-EXEMPT BONDS(c)--98.5% DEVELOPMENT REVENUE--5.4% Hercules Redevelopment Agency Tax-Allocation (AMBAC Insured) 5.000% due 8/1/29 $ 500 $ 480 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 75 5.250% due 8/1/13 500 526 San Diego Redevelopment Agency, Center City Series A (AMBAC Insured) 4.750% due 9/1/30 500 477 San Diego Redevelopment Agency, Center City Series B (AMBAC Insured) 5.350% due 9/1/24 1,000 1,027 Santa Clara Redevelopment Agency Tax Allocation (MBIA Insured) 5.000% due 6/1/22 1,000 1,026 --------- 3,711 --------- EDUCATION REVENUE--3.1% North City West School Facilities Financing Authority, Series B (AMBAC Insured) 5.250% due 9/1/19 1,000 1,085 Sweetwater Unified High School District, Public Financing Authority, Series A (FSA Insured) 5.000% due 9/1/29 1,000 999 --------- 2,084 --------- GENERAL OBLIGATION--20.7% Antelope Valley Union High School District, Series A (MBIA Insured) 5.000% due 2/1/27 1,000 1,018 Brea & Olinda Unified School District, Series A (FGIC Insured) 6.000% due 8/1/15 150 172 Butte-Glenn Community College District, Series A (MBIA Insured) 5.500% due 8/1/19 1,000 1,073 California State 6.250% due 4/1/08 825 825 5.250% due 6/1/16 65 65 5.000% due 2/1/20 750 768 5.500% due 3/1/26 500 525 5.000% due 9/1/30 600 593 5.000% due 11/1/32 700 687 5.000% due 12/1/37 250 243 California State Veterans Bonds, Series BG 5.150% due 12/1/14 895 907
PAR VALUE VALUE (000) (000) --------- --------- GENERAL OBLIGATION--(CONTINUED) California State Veterans Bonds, Series CC 4.500% due 12/1/37 330 $ 297 Desert Community College District (MBIA Insured) 5.000% due 8/1/18 990 1,053 Gilroy Unified School District (FGIC Insured) 5.000% due 8/1/27 500 507 Grossmont-Cuyamaca Community College, District Election of 2002, Series A (MBIA Insured) 5.000% due 8/1/19 250 261 Los Angeles Unified School District, Series A-1 (MBIA Insured) 4.500% due 1/1/28 500 474 Metropolitan Water District Southern California, Series A 5.250% due 3/1/11 180 184 Placer Union High School District (FSA Insured) 0% due 8/1/32 1,500 369 Rancho Santiago Community College District (FSA Insured) 0% due 9/1/27 1,200 407 San Rafael Elementary School District, Election of 2002-B (FGIC Insured) 0% due 8/1/26 1,000 363 Santa Ana Unified School District (FGIC Insured) 5.700% due 8/1/22 400 418 Santa Clara Unified School District (FGIC Insured) 5.500% due 7/1/20 1,000 1,040 Walnut Valley Unified School District, Series A (MBIA Insured) 0% due 8/1/19 3,095 1,558 Wiseburn School District, Series A (MBIA Insured) 5.000% due 8/1/17 280 299 --------- 14,106 --------- GENERAL REVENUE--15.5% Anaheim Public Financing Authority, Series C (FSA Insured) 6.000% due 9/1/16 1,600 1,849 Beverly Hills Public Financing Authority 4.500% due 6/1/28 500 456 California State Public Works Board, Department of Health Services, Richmond Lab Series B (XLCA Insured) 5.000% due 11/1/17 460 484 California State Public Works Board, Highway Patrol Series C 5.250% due 11/1/20 500 517
PAR VALUE VALUE (000) (000) --------- --------- GENERAL REVENUE--(CONTINUED) Golden State Tobacco Securitization Corp., Series A-1 5.125% due 6/1/47 1,500 $ 1,190 5.750% due 6/1/47 500 441 Los Angeles County Public Works Financing Authority, Series A (FSA Insured) 5.500% due 10/1/18 450 496 Pomona Certificates of Participation (AMBAC Insured) 5.500% due 6/1/28 1,365 1,422 San Diego County Certificates of Participation (AMBAC Insured) 5.250% due 11/1/15 960 1,016 San Jose Financing Authority, Series F (MBIA Insured) 5.000% due 9/1/15 1,000 1,055 South Bay Regional Public Communications Authority (ACA Insured) 4.750% due 1/1/31 635 514 South Coast Air Quality Management Corp. (AMBAC Insured) 6.000% due 8/1/11 1,000 1,095 --------- 10,535 --------- HIGHER EDUCATION REVENUE--3.0% 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 1,003 University of California, Series B 4.750% due 5/15/38 500 462 University of California, Series G (FGIC Insured) 4.750% due 5/15/35 525 494 --------- 2,020 --------- MEDICAL REVENUE--6.1% California Health Facilities Financing Authority, Cedars-Sinai Medical Center 5.000% due 11/15/34 500 470 California Health Facilities Financing Authority, Stanford Hospital and Clinics Series A 5.000% due 11/15/14 250 262 California Health Facilities Financing Authority, Sutter Health Series A 5.000% due 11/15/42 870 816 California State Public Works Board, Department of Mental Health Series A 5.500% due 6/1/16 1,000 1,083
See Notes to Financial Statements 22 PHOENIX CA TAX-EXEMPT BOND FUND
PAR VALUE VALUE (000) (000) --------- --------- MEDICAL REVENUE--(CONTINUED) California Statewide Communities Development Authority, Kaiser Permanente, Series B 5.000% due 3/1/41 $ 500 $ 460 California Statewide Communities Development Authority, St. Joseph Health System (FGIC Insured) 5.750% due 7/1/47 500 503 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 11/15/11 400 465 --------- 4,163 --------- MUNICIPAL UTILITY DISTRICT REVENUE--1.2% Sacramento Municipal Utilities District, Financing Authority (MBIA Insured) 4.750% due 7/1/26 500 469 Sacramento Municipal Utility District, Series O (MBIA Insured) 5.250% due 8/15/15 310 328 --------- 797 --------- NATURAL GAS REVENUE--0.7% Roseville Natural Gas Financing Authority 5.000% due 2/15/24 500 455 --------- POWER REVENUE--5.3% Los Angeles Water and Power, Series A -A-2 (MBIA insured) 5.000% due 7/1/19 760 796 Northern California Power Agency, Hydroelectric Project Series A (MBIA Insured) 5.000% due 7/1/15 1,000 1,013 5.200% due 7/1/32 1,120 1,120 Southern California Public Power Authority, Series B (FSA Insured) 5.000% due 7/1/12 635 689 --------- 3,618 --------- PRE-REFUNDED--27.5% Contra Costa County Home Mortgage (GNMA Collateralized) 7.500% due 5/1/14 (b) 500 613 Cypress Single Family Residential Mortgage, Series B (Private Mortgage Insurance) 7.250% due 1/1/12 (b) 200 231
PAR VALUE VALUE (000) (000) --------- --------- PRE-REFUNDED--(CONTINUED) Duarte Redevelopment Agency Single Family Mortgage, Series A (FNMA Collateralized) 6.875% due 11/1/11 (b) $ 300 $ 344 Huntington Park Redevelopment Agency Single Family Residential Mortgage, Series A (FHA/VA/PRIV MTGS Insured) 8.000% due 12/1/19 (b) 2,400 3,312 Los Angeles Harbor Department 7.600% due 10/1/18 (b) 895 1,094 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 1,108 M-S-R Public Power Agency San Juan Project, Series D (MBIA Insured) 6.750% due 7/1/20 (b) 1,835 2,167 Modesto Wastewater Treatment Facility (MBIA Insured) 6.000% due 11/1/12 (b) 735 836 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 1,674 Riverside County Redevelopment Agency, Prerefunded 10/01/11 @ 102 (AMBAC Insured) 5.250% due 10/1/17 250 277 Riverside County Single Family Series A (GNMA Collateralized) 7.800% due 5/1/21 (b) 4,000 5,317 Riverside County Single Family Series B (GNMA Collateralized) 8.625% due 5/1/16 (b) 1,000 1,334 Stockton Housing Facility, O'Connor Woods Project Series A, Prerefunded 9/20/17 @ 100 (GNMA Collateralized) 5.600% due 3/20/28 200 203 --------- 18,766 --------- TRANSPORTATION REVENUE--1.3% Alameda Corridor Transportation Authority, Series A (MBIA Insured) 5.125% due 10/1/16 150 155 5.125% due 10/1/17 125 129 Los Angeles Harbor Department Revenue (MBIA Insured) 4.500% due 8/1/27 500 450
PAR VALUE VALUE (000) (000) --------- --------- TRANSPORTATION REVENUE--(CONTINUED) San Francisco Bay Area Rapid Transit District 5.250% due 7/1/17 180 $ 182 --------- 916 --------- WATER & SEWER REVENUE--8.7% California Statewide Communities Development Authority, Anheuser-Bush Project 4.800% due 9/1/46 1,000 816 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 3/1/16 365 387 Metropolitan Water District of Southern California Waterworks, Series B-3 (MBIA Insured) 5.000% due 10/1/29 1,000 1,008 Modesto Wastewater, Series A (FSA Insured) 5.000% due 11/1/19 245 258 Mountain View Shoreline Regional Park Community, Series A (MBIA Insured) 5.500% due 8/1/21 1,000 1,009 Redlands Financing Authority, Series A (FSA Insured) 5.000% due 9/1/17 1,000 1,038 Sweetwater Water Authority (AMBAC Insured) 5.250% due 4/1/10 125 128 Westlands Water District, Certificates of Participation (MBIA Insured) 5.250% due 9/1/14 500 543 --------- 5,927 ------------------------------------------------------------------------ TOTAL MUNICIPAL TAX-EXEMPT BONDS (IDENTIFIED COST $65,729) 67,098 ------------------------------------------------------------------------ TOTAL LONG TERM INVESTMENTS--98.5% (IDENTIFIED COST $65,729) 67,098 ------------------------------------------------------------------------ SHORT-TERM INVESTMENTS--0.3% FEDERAL AGENCY SECURITIES(d)--0.3% FHLB 2.000% due 4/4/08 200 200 --------- ------------------------------------------------------------------------ TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $200) 200 ------------------------------------------------------------------------ TOTAL INVESTMENTS--98.8% (IDENTIFIED COST $65,929) 67,298(a) Other assets and liabilities, net--1.2% 796 --------- NET ASSETS--100.0% $ 68,094 =========
FOOTNOTE LEGEND: (a) Federal Income Tax Information: Net unrealized appreciation of investment securities is comprised of gross appreciation of $2,782 and gross depreciation of $1,412 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $65,928. (b) Escrowed to maturity. (c) At March 31, 2008, the concentration of the Fund's investments by state or territory determined as a percentage of net assets is as follows: California 98.5%. At March 31, 2008, 77% 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 31%, AMBAC 12%, and GNMA 11%. (d) The rate shown is the discount rate. See Notes to Financial Statements 23 PHOENIX CORE BOND FUND SCHEDULE OF INVESTMENTS MARCH 31, 2008 (UNAUDITED)
PAR VALUE VALUE (000) (000) --------- -------- U.S. GOVERNMENT SECURITIES--0.7% U.S. TREASURY BONDS--0.0% U.S. Treasury Bond 5.000% due 5/15/37 $ 5 $ 5 -------- U.S. TREASURY NOTES--0.7% U.S. Treasury Note 4.250% due 11/15/17 400 427 -------- ------------------------------------------------------------------------ TOTAL U.S. GOVERNMENT SECURITIES (IDENTIFIED COST $431) 432 ------------------------------------------------------------------------ AGENCY MORTGAGE-BACKED SECURITIES--24.2% FHLMC 6.000% due 10/1/34 633 651 FNMA 6.000% due 10/1/14 417 430 6.500% due 6/1/16 271 284 6.000% due 7/1/17 117 121 5.500% due 9/1/17 308 316 5.000% due 4/1/20 414 419 4.500% due 5/1/20 778 774 5.000% due 8/1/21 266 269 6.000% due 5/1/29 259 267 6.500% due 7/1/29 404 422 6.500% due 5/1/30 9 9 7.500% due 3/1/31 164 177 7.000% due 7/1/31 116 124 7.000% due 9/1/31 191 203 6.500% due 2/1/32 418 437 6.500% due 3/1/32 203 212 5.500% due 4/1/33 249 252 5.500% due 6/1/33 1,503 1,522 5.500% due 7/1/33 (g) 2,043 2,069 5.000% due 9/1/33 360 358 5.000% due 7/1/35 297 294 5.500% due 12/1/35 327 330 6.000% due 6/1/36 433 444 6.500% due 8/1/36 556 577 6.000% due 9/1/36 567 582 5.500% due 4/1/37 249 251 FNMA 04-W6, 1A4 5.500% due 7/25/34 255 246 FNMA TBA 5.500% due 3/1/38 (f) 675 682 GNMA 8.500% due 11/15/22 1 1 6.500% due 9/15/28 214 224 7.500% due 9/15/29 162 175 5.000% due 7/15/33 1,990 1,994 6.000% due 6/15/34 399 413 ------------------------------------------------------------------------ TOTAL AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $15,130) 15,529 ------------------------------------------------------------------------ AGENCY NON-MORTGAGE-BACKED SECURITIES--0.6% FHLB 6.000% due 6/29/22 200 210
PAR VALUE VALUE (000) (000) --------- -------- FHLMC 5.200% due 3/5/19 $200 $ 204 ------------------------------------------------------------------------ TOTAL AGENCY NON-MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $394) 414 ------------------------------------------------------------------------ MUNICIPAL BONDS--11.0% FLORIDA--2.2% Broward County Series A 5.000% due 1/1/21 600 641 Miami-Dade County Educational Facilities Authority Taxable Series C 5.480% due 4/1/16 110 113 Orange County Tourist Development (MBIA Insured) 5.000% due 10/1/17 640 690 -------- 1,444 -------- ILLINOIS--1.0% Illinois State 5.000% due 1/1/19 580 625 -------- INDIANA--0.9% Indiana Transportation Finance Authority Series A Prerefunded 6/01/14 @ 100 (FGIC Insured) 5.250% due 6/1/20 520 579 -------- KANSAS--1.4% Kansas State Department of Transportation Series A (FSA Insured) 5.500% due 3/1/19 785 889 -------- MASSACHUSETTS--0.9% Massachusetts State Series D 5.500% due 10/1/16 520 589 -------- MICHIGAN--0.4% Flat Rock Finance Authority Taxable Series A 6.750% due 10/1/16 95 103 Michigan Tobacco Settlement Finance Authority Taxable Series A 7.309% due 6/1/34 185 180 -------- 283 -------- NEW YORK--0.9% City of New York (MBIA Insured) 5.000% due 8/1/17 520 566 -------- PENNSYLVANIA--1.5% City of Pittsburgh Pension Obligation Taxable Series C (FGIC Insured) 6.500% due 3/1/17 340 373
PAR VALUE VALUE (000) (000) --------- -------- PENNSYLVANIA--(CONTINUED) Commonwealth of Pennsylvania (FSA Insured) 5.375% due 7/1/18 $ 530 $ 599 -------- 972 -------- RHODE ISLAND--1.7% Woonsocket Pension Funding Taxable (FSA Insured) 5.660% due 7/15/13 1,000 1,064 -------- VIRGINIA--0.1% Tobacco Settlement Financing Corp. Series A-1 Taxable 6.706% due 6/1/46 90 82 -------- ------------------------------------------------------------------------ TOTAL MUNICIPAL BONDS (IDENTIFIED COST $7,006) 7,093 ------------------------------------------------------------------------ ASSET-BACKED SECURITIES--6.9% AmeriCredit Automobile Receivables Trust 05-AX, A4 3.930% due 10/6/11 1,767 1,709 AmeriCredit Automobile Receivables Trust 06-BG, A3 5.210% due 10/6/11 166 164 Capital Auto Receivables Asset Trust Series 2006-2 Class A3A 4.980% due 5/15/11 165 167 Capital One Auto Finance Trust 07-B, A3A 5.030% due 4/15/12 500 485 Carmax Auto Owner Trust 07-2, A3 5.230% due 12/15/11 442 451 Ford Credit Auto Owner Trust 07-A, A3B 2.848% due 8/15/11 (c) 295 289 Renaissance Home Equity Loan Trust 06-2, AF4 6.115% due 8/25/36 (c) 730 641 Residential Funding Mortgage Securities II, Inc. 06-HSA1, A2 5.190% due 2/25/36 (c) 400 319 Saxon Asset Securities Trust 05-3, A2C 2.879% due 11/25/35 (c) 226 216 ------------------------------------------------------------------------ TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $4,694) 4,441 ------------------------------------------------------------------------ DOMESTIC CORPORATE BONDS--19.4% AIRLINES--1.1% American Airlines, Inc. 99-1 7.024% due 4/15/11 365 362 Continental Airlines, Inc. 98-1A 6.648% due 3/15/19 343 338 -------- 700 --------
See Notes to Financial Statements 24 PHOENIX CORE BOND FUND
PAR VALUE VALUE (000) (000) -------- -------- APPLICATION SOFTWARE--0.1% Intuit, Inc. 5.750% due 3/15/17 $ 45 $ 44 -------- ASSET MANAGEMENT & CUSTODY BANKS--0.8% Allied Capital Corp. 6.000% due 4/1/12 100 101 Bank of New York Mellon Corp. (The) 4.950% due 11/1/12 115 118 Janus Capital Group, Inc. 6.250% due 6/15/12 125 127 Nuveen Investments, Inc. 5.000% due 9/15/10 230 200 -------- 546 -------- AUTOMOBILE MANUFACTURERS--0.2% Daimler Finance North America LLC 6.500% due 11/15/13 95 100 -------- BROADCASTING & CABLE TV--0.5% Comcast Corp. 5.300% due 1/15/14 105 103 5.875% due 2/15/18 65 64 Time Warner Cable, Inc. 5.850% due 5/1/17 70 67 Viacom, Inc. 6.250% due 4/30/16 70 68 -------- 302 -------- BUILDING PRODUCTS--0.1% Masco Corp. 5.850% due 3/15/17 45 41 Owens Corning, Inc. 6.500% due 12/1/16 35 29 -------- 70 -------- CONSTRUCTION MATERIALS--0.3% CRH America, Inc. (Ireland) 6.000% due 9/30/16(d) 135 129 Vulcan Materials Co. 5.600% due 11/30/12 80 81 -------- 210 -------- CONSUMER FINANCE--1.4% Capital One Financial Corp. 5.250% due 2/21/17 70 59 GMAC LLC 6.875% due 8/28/12 180 137 HSBC Finance Corp. 8.000% due 7/15/10 300 317 SLM Corp. 5.361% due 2/1/10 (c) 500 405 -------- 918 -------- DATA PROCESSING & OUTSOURCED SERVICES--0.4% Broadridge Financial Solutions, Inc. 6.125% due 6/1/17 110 103 Fiserv, Inc. 6.125% due 11/20/12 125 129 -------- 232 --------
PAR VALUE VALUE (000) (000) -------- -------- DIVERSIFIED BANKS--0.3% Wachovia Corp. 4.875% due 2/15/14 $200 $ 195 -------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--0.4% Cintas Corp. 6.125% due 12/1/17 105 109 Equifax, Inc. 6.300% due 7/1/17 130 132 -------- 241 -------- ELECTRIC UTILITIES--1.1% Dominion Resources, Inc. Series D 5.000% due 3/15/13 90 92 Florida Power Corp. Series A 5.800% due 9/15/17 135 143 Great River Energy 144A 5.829% due 7/1/17 (b) 140 143 NiSource Finance Corp. 6.400% due 3/15/18 130 130 PPL Capital Funding Trust I Series A 4.330% due 3/1/09 190 191 -------- 699 -------- FOOD RETAIL--0.1% Kroger Co. (The) 6.800% due 12/15/18 70 75 -------- HEALTH CARE DISTRIBUTORS--0.2% Cardinal Health, Inc. 6.000% due 6/15/17 125 127 -------- HEALTH CARE SERVICES--0.1% Quest Diagnostics, Inc. 6.400% due 7/1/17 65 65 -------- HOME FURNISHINGS--0.2% Mohawk Industries, Inc. 6.125% due 1/15/16 160 157 -------- 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 11/15/16 115 111 -------- INTEGRATED TELECOMMUNICATION SERVICES--0.9% AT&T, Inc. 5.875% due 2/1/12 130 135 5.625% due 6/15/16 130 130 Embarq Corp. 6.738% due 6/1/13 65 63 Qwest Corp. 7.875% due 9/1/11 65 65 Verizon Communications, Inc. 4.900% due 9/15/15 130 126 5.500% due 4/1/17 70 69 -------- 588 --------
PAR VALUE VALUE (000) (000) -------- -------- INVESTMENT BANKING & BROKERAGE--1.7% Bear Stearns Cos., Inc. (The) 7.250% due 2/1/18 $ 80 $ 83 Credit Suisse USA, Inc. 5.850% due 8/16/16 135 139 Goldman Sachs Group, Inc. (The) 5.125% due 1/15/15 160 155 6.150% due 4/1/18 140 140 Lehman Brothers Holdings, Inc. 6.000% due 7/19/12 55 54 5.625% due 1/24/13 65 63 5.750% due 1/3/17 145 131 Merrill Lynch & Co., Inc. 6.110% due 1/29/37 150 119 Morgan Stanley 5.375% due 10/15/15 250 237 -------- 1,121 -------- LEISURE PRODUCTS--0.2% Hasbro, Inc. 6.300% due 9/15/17 135 141 -------- MANAGED HEALTH CARE--0.2% WellPoint, Inc. 5.250% due 1/15/16 125 118 -------- MORTGAGE REITS--0.2% iStar Financial, Inc. 6.050% due 4/15/15 200 142 -------- MOVIES & ENTERTAINMENT--0.2% Time Warner, Inc. 5.875% due 11/15/16 130 124 -------- MULTI-LINE INSURANCE--0.1% Assurant, Inc. 5.625% due 2/15/14 70 69 -------- OFFICE ELECTRONICS--0.3% Xerox Corp. 6.750% due 2/1/17 170 179 -------- OIL & GAS REFINING & MARKETING--0.4% Enterprise Products Partners L.P. 6.300% due 9/15/17 100 100 Valero Energy Corp. 4.750% due 6/15/13 140 140 -------- 240 -------- OIL & GAS STORAGE & TRANSPORTATION--1.1% Buckeye Partners LP 5.125% due 7/1/17 200 192 Energy Transfer Partners LP 5.950% due 2/1/15 135 133 Kinder Morgan Energy Partners LP 6.000% due 2/1/17 135 134 NGPL PipeCo. LLC 144A 6.514% due 12/15/12 (b) 100 104 Williams Cos., Inc. (The) 7.125% due 9/1/11 125 133 -------- 696 --------
See Notes to Financial Statements 25 PHOENIX CORE BOND FUND
PAR VALUE VALUE (000) (000) --------- --------- OTHER DIVERSIFIED FINANCIAL SERVICES--2.6% Bank of America Corp. 5.750% due 12/1/17 $ 100 $ 104 5.490% due 3/15/19 300 291 Citigroup, Inc. 5.500% due 8/27/12 90 91 5.500% due 2/15/17 95 89 General Electric Capital Corp. 6.750% due 3/15/32 500 534 International Lease Finance Corp. 4.750% due 1/13/12 225 218 JPMorgan Chase & Co. 5.125% due 9/15/14 155 153 5.250% due 5/1/15 85 84 6.000% due 1/15/18 125 130 --------- 1,694 --------- PACKAGED FOODS & MEATS--0.1% Kraft Foods, Inc. 6.125% due 2/1/18 80 80 --------- PROPERTY & CASUALTY INSURANCE--0.2% Travelers Cos., Inc. 5.750% due 12/15/17 100 101 --------- REGIONAL BANKS--0.8% Credit Suisse First Boston 6.000% due 2/15/18 65 65 PNC Bank NA 4.875% due 9/21/17 155 139 SunTrust Banks, Inc. 5.250% due 11/5/12 135 133 Zions Bancorp 5.500% due 11/16/15 200 179 --------- 516 --------- RESIDENTIAL REITS--0.2% UDR, Inc. 5.250% due 1/15/15 150 141 --------- RESTAURANTS--0.4% Starbucks Corp. 6.250% due 8/15/17 135 141 Yum! Brands, Inc. 6.250% due 4/15/16 140 141 --------- 282 --------- RETAIL REITS--0.4% Simon Property Group LP 5.100% due 6/15/15 70 64 Tanger Factory Outlet Centers 6.150% due 11/15/15 190 200 --------- 264 --------- SPECIALIZED FINANCE--0.2% CIT Group, Inc. 5.125% due 9/30/14 200 152 --------- SPECIALIZED REITS--0.7% Health Care REIT, Inc. 5.875% due 5/15/15 225 209 Nationwide Health Properties, Inc. 6.250% due 2/1/13 130 132
PAR VALUE VALUE (000) (000) --------- --------- SPECIALIZED REITS--(CONTINUED) Realty Income Corp. 6.750% due 8/15/19 $110 $ 104 --------- 445 --------- STEEL--0.2% Commercial Metals Co. 6.500% due 7/15/17 100 103 --------- THRIFTS & MORTGAGE FINANCE--0.3% Countrywide Financial Corp. 6.250% due 5/15/16 65 53 Residential Capital LLC 8.000% due 2/22/11 80 40 Washington Mutual, Inc. 4.625% due 4/1/14 155 109 --------- 202 --------- TOBACCO--0.1% Reynolds American, Inc. 6.750% due 6/15/17 95 96 --------- WIRELESS TELECOMMUNICATION SERVICES--0.2% Nextel Communications, Inc. Series D 7.375% due 8/1/15 70 54 Sprint Nextel Corp. 6.000% due 12/1/16 65 50 --------- 104 ----------------------------------------------------------------------------- TOTAL DOMESTIC CORPORATE BONDS (IDENTIFIED COST $12,960) 12,500 ----------------------------------------------------------------------------- NON-AGENCY MORTGAGE-BACKED SECURITIES--30.0% Banc of America Alternative Loan Trust 06-9, A1 6.000% due 1/25/37 592 577 Bear Stearns Adjustable Rate Mortgage Trust 05-12, 13A1 5.443% due 2/25/36 (c) 163 147 Bear Stearns Commercial Mortgage Securities 06-PW12, A4 5.711% due 9/11/38 (c) 370 373 Citigroup Mortgage Loan Trust, Inc. 05-5, 2A3 5.000% due 8/25/35 77 77 Citigroup/Deutsche Bank Commercial Mortgage Trust 05-CD1, AM 5.226% due 7/15/44 (c) 650 623 Citigroup/Deutsche Bank Commercial Mortgage Trust 06-CD2, A4 5.362% due 1/15/46 (c) 655 646 Citigroup/Deutsche Bank Commercial Mortgage Trust 07-CD4, A4 5.322% due 12/11/49 700 676 Countrywide Home Loan Mortgage Pass-Through Trust 04-13, 1A1 5.500% due 8/25/34 175 174 Countrywide Home Loan Mortgage Pass-Through Trust 07-1, A2 6.000% due 3/25/37 650 629
PAR VALUE VALUE (000) (000) --------- --------- Credit Suisse Mortgage Capital Certificates 06-C1, A4 5.555% due 2/15/39 (c) $ 935 $ 932 Crown Castle Towers LLC 05-1A, AFX 144A 4.643% due 6/15/35 (b) 450 441 First Horizon Asset Securities, Inc. 03-2, 1A12 5.750% due 4/25/33 442 408 First Union - Lehman Brothers - Bank of America 98-C2, A2 6.560% due 11/18/35 185 184 GE Capital Commercial Mortgage Corp. 04-C3, A4 5.189% due 7/10/39 (c) 1,000 1,006 GMAC Mortgage Corp. Loan Trust 05-AR2, 2A 4.864% due 5/25/35 (c) 264 249 Greenwich Capital Commercial Funding Corp. 04-GG1, A7 5.317% due 6/10/36 (c) 1,000 997 Greenwich Structured ARM Products 05-5A, N2 144A 6.611% due 9/27/45 (b)(c)(h) 315 296 JPMorgan Mortgage Trust 05-S3, 2A2 5.500% due 1/25/21 292 288 Lehman Brothers - UBS Commercial Mortgage Trust 04-C7, A6 4.786% due 10/15/29 (c) 1,000 980 Lehman Brothers - UBS Commercial Mortgage Trust 06-C6, A4 5.372% due 9/15/39 710 695 Lehman Brothers - UBS Commercial Mortgage Trust 07-C2, A2 5.303% due 2/15/40 225 220 Lehman Brothers - UBS Commercial Mortgage Trust 07-C6, A2 5.845% due 7/15/40 360 353 Lehman Brothers Commercial Conduit Mortgage Trust 07-C3, A4 5.933% due 7/15/44 (c) 170 171 MASTR Asset Securitization Trust 03-10, 3A1 5.500% due 11/25/33 312 308 MASTR Resecuritzation Trust 05-4CI, N2 144A 5.606% due 4/26/45 (b)(c)(h) 170 68 Merrill Lynch Mortgage Trust 04-KEY2, A4 4.864% due 8/12/39 (c) 1,000 984 Merrill Lynch Mortgage Trust 06-C1, AM 5.658% due 5/12/39 (c) 320 298 Merrill Lynch/Countrywide Commercial Mortgage Trust 06-3, A4 5.414% due 7/12/46 (c) 445 437 Morgan Stanley Capital I 06-T23, A4 5.811% due 8/12/41 (c) 360 366 Morgan Stanley Capital I 07-IQ14, A2 5.610% due 4/15/49 350 344
See Notes to Financial Statements 26 PHOENIX CORE BOND FUND
PAR VALUE VALUE (000) (000) --------- --------- Morgan Stanley Mortgage Loan Trust 05-5AR, 4A1 5.528% due 9/25/35 (c) $ 292 $ 229 Paine Webber Mortgage Acceptance Corp. 99-C1, D 7.150% due 6/15/32 (c) 190 195 Prudential Securities Secured Financing Corp. 98-C1, C 6.742% due 5/15/10 716 715 Residential Accredit Loans, Inc. 06-QA1, A21 5.963% due 1/25/36 (c) 567 438 Residential Funding Mortgage Securities I, Inc. 05-SA1, 2A 4.843% due 3/25/35 (c) 286 272 SBA Commercial Mortgage Backed Securities Trust 06-1A, B 144A 5.451% due 11/15/36 (b) 140 128 Structured Asset Securities Corp. 03-32, 1A1 5.198% due 11/25/33 (c) 451 413 Wachovia Mortgage Loan Trust LLC 06-A, B1 5.415% due 5/20/36 (c) 257 218 Washington Mutual Mortgage Pass-Through- Certificates, Inc. 05-AR3, A2 4.637% due 3/25/35 (c) 580 519 Wells Fargo Mortgage Backed Securities Trust 04-BB, A1 4.557% due 1/25/35 (c) 246 227 Wells Fargo Mortgage Backed Securities Trust 05-14, 2A1 5.500% due 12/25/35 721 703 Wells Fargo Mortgage Backed Securities Trust 05-5, 1A1 5.000% due 5/25/20 312 304 Wells Fargo Mortgage Backed Securities Trust 05-AR16, 6A3 5.000% due 10/25/35 (c) 577 562 Wells Fargo Mortgage Backed Securities Trust 05-AR4, 2A1 4.523% due 4/25/35 (c) 262 239 Wells Fargo Mortgage Backed Securities Trust 05-AR4, 2A2 4.523% due 4/25/35 (c) 219 205 ------------------------------------------------------------------------- TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $20,248) 19,314 ------------------------------------------------------------------------- FOREIGN GOVERNMENT SECURITIES--0.8% CHILE--0.3% Republic of Chile 5.500% due 1/15/13 150 159 ---------
PAR VALUE VALUE (000) (000) --------- --------- RUSSIA--0.5% Russian Federation RegS 7.500% due 3/31/30 (c)(e) $302 $ 348 --------- ------------------------------------------------------------------------- TOTAL FOREIGN GOVERNMENT SECURITIES (IDENTIFIED COST $466) 507 ------------------------------------------------------------------------- FOREIGN CORPORATE BONDS (d)--3.3% ARUBA--0.2% UFJ Finance AEC 6.750% due 7/15/13 100 111 --------- AUSTRALIA--0.2% Westfield Capital Corp. Ltd./Westfield Finance Authority 144A 5.125% due 11/15/14 (b) 150 137 --------- BRAZIL--0.2% Vale Overseas Ltd. 6.250% due 1/23/17 130 129 --------- CANADA--0.2% EnCana Corp. 5.900% due 12/1/17 80 82 Xstrata Finance Canada Ltd. 144A 5.800% due 11/15/16 (b) 70 68 --------- 150 --------- CAYMAN ISLANDS--0.2% Petrobras International Finance Co. 6.125% due 10/6/16 135 135 --------- CHILE--0.2% Petropower I Funding Trust 144A 7.360% due 2/15/14 (b) 113 112 --------- LUXEMBOURG--0.1% Covidien International Finance SA 144A 6.000% due 10/15/17 (b) 55 57 --------- NETHERLANDS--0.1% Deutsche Telekom International Finance BV 5.750% due 3/23/16 100 99 --------- QATAR--0.4% Ras Laffan Liquefied Natural Gas Co. Ltd. RegS 5.298% due 9/30/20 (e) 250 243 ---------
PAR VALUE VALUE (000) (000) --------- --------- RUSSIA--0.6% Gazprom OAO (Gaz Capital SA) 144A 6.212% due 11/22/16 (b) $130 $ 120 OJSC AK Transneft (TransCapitalInvest Ltd.) 144A 5.670% due 3/5/14 (b) 170 158 TNK-BP Finance SA RegS 6.125% due 3/20/12 (e) 105 99 --------- 377 --------- SINGAPORE--0.2% ICICI Bank Ltd. RegS 5.750% due 11/16/10 (e) 105 105 --------- SOUTH KOREA--0.2% Export-Import Bank of Korea 5.500% due 10/17/12 135 138 --------- SPAIN--0.1% Telefonica Emisiones SAU 6.421% due 6/20/16 75 77 --------- UNITED KINGDOM--0.4% Barclays Bank plc 144A 6.050% due 12/4/17 (b) 125 122 Vodafone Group plc 5.000% due 9/15/15 80 76 6.150% due 2/27/37 70 65 --------- 263 ------------------------------------------------------------------------- TOTAL FOREIGN CORPORATE BONDS (IDENTIFIED COST $2,165) 2,133 ------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--96.9% (IDENTIFIED COST $63,494) 62,363 ------------------------------------------------------------------------- SHORT-TERM INVESTMENTS--3.8% COMMERCIAL PAPER(i)--3.8% Eaton Corp. 2.750% due 4/1/08 2,420 2,420 --------- ------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $2,420) 2,420 ------------------------------------------------------------------------- TOTAL INVESTMENTS--100.7% (IDENTIFIED COST $65,914) 64,783(a) Other assets and liabilities, net--(0.7)% (420) --------- NET ASSETS--100.0% $ 64,363 =========
FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): Net unrealized depreciation of investment securities is comprised of gross appreciation of $386 and gross depreciation of $1,921 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $66,318. (b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2008, these securities amounted to a value of $1,954 (reported in 000s) or 3.0% 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, or 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) When-issued security. (g) All or a portion segregated as collateral for a when-issued security. (h) Illiquid and restricted security. At March 31, 2008, these securities amounted to a value of $364 (reported in 000s) or 0.6% of net assets. For acquisition information, see Note 7 "Illiquid and Restricted Securities" in the Notes to Financial Statements. (i) The rate shown is the discount rate. See Notes to Financial Statements 27 PHOENIX HIGH YIELD FUND SCHEDULE OF INVESTMENTS MARCH 31, 2008 (UNAUDITED)
PAR VALUE VALUE (000) (000) --------- --------- DOMESTIC CORPORATE BONDS--86.1% ADVERTISING--1.9% Affinion Group, Inc. 10.125% due 10/15/13 $ 645 $ 644 11.500% due 10/15/15 1,555 1,509 --------- 2,153 --------- AEROSPACE & DEFENSE--3.9% Bombardier Inc. 144A 8.000% due 11/15/14 (b) 1,720 1,780 DynCorp International, Inc. 9.500% due 2/15/13 530 542 L-3 Communications Corp. 7.625% due 6/15/12 1,440 1,482 5.875% due 1/15/15 550 529 --------- 4,333 --------- APPAREL, ACCESSORIES & LUXURY GOODS--1.7% Levi Strauss & Co. 9.750% due 1/15/15 515 516 8.875% due 4/1/16 1,370 1,315 --------- 1,831 --------- AUTO PARTS & EQUIPMENT--0.0% CB Cambridge Industries Liquidating Trust Interests 0% due 12/24/05 (e) (f) (i) 5,164 6 --------- AUTOMOTIVE RETAIL--1.0% AutoNation, Inc. 7.000% due 4/15/14 1,280 1,142 --------- BROADCASTING & CABLE TV--6.6% Clear Channel Communications, Inc. 7.650% due 9/15/10 3,085 3,260 EchoStar DBS Corp. 7.125% due 2/1/16 1,745 1,636 Sinclair Broadcast Group, Inc. 8.000% due 3/15/12 1,685 1,706 United Artists Theatre Circuit, Inc. Series 95-A 9.300% due 7/1/15 (h) 349 355 United Artists Theatre Circuit, Inc. Series AW-0 9.300% due 7/1/15 (h) 2 2 United Artists Theatre Circuit, Inc. Series BD-1 9.300% due 7/1/15 (h) 376 382 United Artists Theatre Circuit, Inc. Series BE-9 9.300% due 7/1/15 (h) 13 14 --------- 7,355 ---------
PAR VALUE VALUE (000) (000) --------- --------- BUILDING PRODUCTS--1.5% Gibraltar Industries, Inc. Series B 8.000% due 12/1/15 $2,045 $ 1,667 --------- CASINOS & GAMING--6.3% American Real Estate Partners LP/American Real Estate Finance Corp. 8.125% due 6/1/12 1,515 1,485 7.125% due 2/15/13 705 643 MGM MIRAGE 7.500% due 6/1/16 615 557 7.625% due 1/15/17 1,705 1,560 OED Corp./Diamond Jo LLC 8.750% due 4/15/12 1,195 1,058 Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 6.625% due 12/1/14 265 256 Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 144A 6.625% due 12/1/14 (b) 1,530 1,480 --------- 7,039 --------- CATALOG RETAIL--1.1% Harry & David Holdings, Inc. 8.076% due 3/1/12 (c) 1,390 1,175 --------- COMMUNICATIONS EQUIPMENT--1.0% Dycom Industries, Inc. 8.125% due 10/15/15 1,140 1,077 --------- CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--1.2% Trinity Industries, Inc. 6.500% due 3/15/14 1,365 1,331 --------- CONSUMER FINANCE--6.2% Ford Motor Credit Co. LLC 7.375% due 2/1/11 765 638 9.875% due 8/10/11 360 321 7.000% due 10/1/13 1,200 937 8.000% due 12/15/16 1,565 1,227 GMAC LLC 7.250% due 3/2/11 1,000 788 6.000% due 12/15/11 625 467 6.750% due 12/1/14 1,130 801 Hertz Corp. (The) 8.875% due 1/1/14 1,025 976 10.500% due 1/1/16 720 678 --------- 6,833 --------- DISTRIBUTORS--0.4% Susser Holdings Corp. 144A 10.625% due 12/15/13 (b) 440 454 ---------
PAR VALUE VALUE (000) (000) --------- --------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--1.7% FTI Consulting, Inc. 7.750% due 10/1/16 $ 565 $ 588 Harland Clarke Holdings Corp. 7.815% due 5/15/15 (c) 1,405 878 9.500% due 5/15/15 545 403 --------- 1,869 --------- DIVERSIFIED METALS & MINING--2.9% Freeport-McMoRan Copper & Gold, Inc. (Indonesia) 8.375% due 4/1/17(d) 3,045 3,239 --------- ELECTRIC UTILITIES--2.0% Reliant Energy, Inc. 6.750% due 12/15/14 2,125 2,173 --------- FOOD RETAIL--0.6% Stater Brothers Holdings, Inc. 8.125% due 6/15/12 640 645 --------- GENERAL MERCHANDISE STORES--0.2% Dollarama Group LP 8.875% due 8/15/12 210 198 --------- HEALTH CARE FACILITIES--2.2% HCA, Inc. 9.250% due 11/15/16 2,360 2,454 --------- HOUSEWARES & SPECIALTIES--0.3% American Greetings Corp. 7.375% due 6/1/16 380 379 --------- INTEGRATED TELECOMMUNICATION SERVICES--5.2% Hughes Network Systems LLC/Hughes Network Systems Finance Corp. 9.500% due 4/15/14 1,960 1,960 International Cable plc 8.750% due 4/15/14 1,400 1,263 Qwest Corp. 8.875% due 3/15/12 345 354 6.500% due 6/1/17 735 663 Telcordia Technologies, Inc. (b) 144A 8.008% due 7/15/12 (c) 665 509 10.000% due 3/15/13 1,435 1,012 --------- 5,761 --------- IT CONSULTING & OTHER SERVICES--1.2% Unisys Corp. 12.500% due 1/15/16 1,305 1,285 ---------
See Notes to Financial Statements 28 PHOENIX HIGH YIELD FUND
PAR VALUE VALUE (000) (000) ------ -------- METAL & GLASS CONTAINERS--0.5% AEP Industries, Inc. 7.875% due 3/15/13 $ 590 $ 540 -------- MOVIES & ENTERTAINMENT--0.7% WMG Acquisition Corp. 7.375% due 4/15/14 680 527 WMG Holdings Corp. 0% due 12/15/14 (c) 465 244 -------- 771 -------- MULTI-UTILITIES--1.7% Aquila, Inc. 14.875% due 7/1/12 1,505 1,862 -------- OFFICE SERVICES & SUPPLIES--2.9% IKON Office Solutions, Inc. 7.750% due 9/15/15 3,350 3,199 -------- OIL & GAS EQUIPMENT & SERVICES--1.4% Seitel, Inc. 9.750% due 2/15/14 1,890 1,602 -------- OIL & GAS EXPLORATION & PRODUCTION--5.0% Chesapeake Energy Corp. 6.625% due 1/15/16 1,240 1,221 Pioneer Natural Resources Co. 6.650% due 3/15/17 415 395 6.875% due 5/1/18 2,475 2,357 Plains Exploration & Production Co. 7.000% due 3/15/17 815 787 Sabine Pass Lng LLP 7.500% due 11/30/16 850 825 -------- 5,585 -------- OIL & GAS STORAGE & TRANSPORTATION--1.8% SemGroup LP 144A 8.750% due 11/15/15 (b) 2,205 2,029 -------- PAPER PRODUCTS--2.7% Exopac Holding Corp. 11.250% due 2/1/14 1,910 1,757 Mercer International, Inc. 9.250% due 2/15/13 658 550 Rock-Tenn Co. 144A 9.250% due 3/15/16 (b) 605 629 -------- 2,936 -------- PRECIOUS METALS & MINERALS--0.1% PNA Group, Inc. 10.750% due 9/1/16 100 88 -------- PUBLISHING--4.2% Belo Corp. 6.750% due 5/30/13 1,080 1,034 Dex Media West LLC/Dex Media West Finance Co. Series B 9.875% due 8/15/13 435 380
PAR VALUE VALUE (000) (000) ------ -------- PUBLISHING--(CONTINUED) Dex Media, Inc. 8.000% due 11/15/13 $ 845 $ 621 Donnelley (R.H.) Corp. 144A 8.875% due 10/15/17 (b) 2,215 1,395 Idearc, Inc. 8.000% due 11/15/16 1,805 1,178 -------- 4,608 -------- SEMICONDUCTORS--1.8% Amkor Technology, Inc. 7.750% due 5/15/13 1,205 1,104 9.250% due 6/1/16 490 474 Freescale Semiconductor, Inc. 8.875% due 12/15/14 535 421 -------- 1,999 -------- SPECIALIZED CONSUMER SERVICES--0.9% Stewart Enterprises, Inc. 6.250% due 2/15/13 1,060 996 -------- SPECIALIZED FINANCE--0.7% PNA Intermediate Holding Corp. PIK Interest Capitalization 10.065% due 2/15/13 1,025 802 -------- SPECIALIZED REITS--3.8% Felcor Lodging LP 8.500% due 6/1/11 1,030 1,015 Host Hotels & Resorts LP Series O 6.375% due 3/15/15 1,925 1,800 Ventas Realty LP/Ventas Capital Corp. 6.750% due 4/1/17 1,400 1,375 -------- 4,190 -------- SPECIALTY CHEMICALS--2.1% Huntsman International LLC 7.875% due 11/15/14 1,070 1,139 7.375% due 1/1/15 1,165 1,212 -------- 2,351 -------- SPECIALTY STORES--0.7% Morris Publishing Group LLC 7.000% due 8/1/13 1,421 817 -------- STEEL--0.6% Steel Dynamics, Inc. 144A 7.750% due 4/15/16 (b) 685 686 -------- TOBACCO--3.5% Alliance One International, Inc. 11.000% due 5/15/12 1,865 1,902 Reynolds American, Inc. 7.300% due 7/15/15 455 472 7.625% due 6/1/16 985 1,041 7.750% due 6/1/18 485 513 -------- 3,928 --------
PAR VALUE VALUE (000) (000) ------ -------- TRADING COMPANIES & DISTRIBUTORS--0.3% Ashtead Capital, Inc. 144A 9.000% due 8/15/16 (b) $ 385 $ 314 -------- TRUCKING--1.6% Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 7.750% due 5/15/16 2,125 1,743 -------- ------------------------------------------------------------ TOTAL DOMESTIC CORPORATE BONDS (IDENTIFIED COST $101,984) 95,445 ------------------------------------------------------------ FOREIGN CORPORATE BONDS(d)--6.6% CANADA--3.3% Cascades, Inc. 7.250% due 2/15/13 730 648 CHC Helicopter Corp. 7.375% due 5/1/14 455 456 Dollarama Group LP 10.579% due 8/15/12 (c) 1,160 1,102 Russel Metals, Inc. 6.375% due 3/1/14 1,640 1,525 -------- 3,731 -------- CHINA--0.6% NXP BV/NXP Funding LLC 7.875% due 10/15/14 730 672 -------- LUXEMBOURG--0.4% LyondellBasell Industries AF SCA 144A 8.375% due 8/15/15 (b) 640 470 -------- POLAND--0.1% Poland Telecom Finance BV Series B 14.000% due 12/1/07 (e)(f)(i) 4,942 62 -------- UNITED KINGDOM--0.6% Ineos Group Holdings plc 144A 8.500% due 2/15/16 (b) 800 626 -------- UNITED STATES--1.6% Ashtead Holdings plc 144A 8.625% due 8/1/15 (b) 560 451 Stratos Global Corp. 9.875% due 2/15/13 1,346 1,374 -------- 1,825 ------------------------------------------------------------ TOTAL FOREIGN CORPORATE BONDS (IDENTIFIED COST $12,740) 7,386 ------------------------------------------------------------
See Notes to Financial Statements 29 PHOENIX HIGH YIELD FUND
VALUE SHARES (000) ------- -------- DOMESTIC COMMON STOCKS--0.0% COMMERCIAL PRINTING--0.0% ACG Holdings, Inc. (e)(i) 76 $ 0 -------- ------------------------------------------------------------ TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $358) 0 ------------------------------------------------------------ TOTAL LONG TERM INVESTMENTS--92.7% (IDENTIFIED COST $115,082) 102,831 ------------------------------------------------------------ SHORT-TERM INVESTMENTS--5.5%
PAR VALUE (000) ------- FEDERAL AGENCY SECURITIES(g)--5.5% FHLB 1.500% due 4/1/08 $ 6,100 6,100 -------- ------------------------------------------------------------ TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $6,100) 6,100 ------------------------------------------------------------ TOTAL INVESTMENTS--98.2% (IDENTIFIED COST $121,182) 108,931(a) Other assets and liabilities, net--1.8% 1,970 -------- NET ASSETS--100.0% $110,901 ========
FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): Net unrealized depreciation of investment securities is comprised of gross appreciation of $388 and gross depreciation of $12,957 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $121,500. (b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2008, these securities amounted to a value of $11,835 (reported in 000s) or 10.7% 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 in the header, or parenthetically, is determined based on criteria described in Note 2G "Foreign security country determination" in the Notes to Financial Statements. (e) Non-income producing. (f) Security in default. (g) The rate shown is the discount rate. (h) Illiquid security. Securities valued at fair value as determined in good faith by or under the direction of the Trustees. (i) Illiquid and restricted security. Securities valued at fair value as determined in good faith by or under the direction of the Trustees. At March 31, 2008, these securities amounted to a value of $68 (reported in 000s) or 0% of net assets. For acquisition information, see Note 7 "Illiquid and Restricted Securities" in the Notes to Financial Statements. See Notes to Financial Statements 30 PHOENIX MONEY MARKET FUND SCHEDULE OF INVESTMENTS MARCH 31, 2008 (UNAUDITED)
PAR VALUE VALUE (000) (000) ------- -------- FEDERAL AGENCY SECURITIES(d)--17.9% FFCB 3.000% due 4/15/08 $ 2,890 $ 2,889 3.000% due 7/28/08 935 932 FHLB 3.790% due 4/29/08 1,500 1,499 3.000% due 7/11/08 1,000 997 4.250% due 8/25/08 (c) 550 554 2.870% due 11/21/08 (c) 2,000 2,000 2.800% due 2/6/09 1,500 1,500 2.750% due 2/13/09 1,500 1,500 3.000% due 3/4/09 2,000 2,000 FHLMC 5.750% due 4/15/08 1,560 1,561 3.060% due 7/15/08 500 498 3.650% due 1/16/09 2,000 2,000 -------------------------------------------------------------------------- TOTAL FEDERAL AGENCY SECURITIES (IDENTIFIED COST $17,930) 17,930 -------------------------------------------------------------------------- FEDERAL AGENCY SECURITIES--VARIABLE(c)(g)--1.6% SBA (Final Maturity 2/25/23) 4.750% due 4/1/08 250 250 SBA (Final Maturity 1/25/21) 4.750% due 4/1/08 27 27 SBA (Final Maturity 10/25/22) 4.750% due 4/1/08 364 364 SBA (Final Maturity 11/25/21) 4.875% due 4/1/08 290 289 SBA (Final Maturity 2/25/23) 4.750% due 4/1/08 194 194 SBA (Final Maturity 3/25/24) 4.625% due 4/1/08 136 127 SBA (Final Maturity 5/25/21) 4.750% due 4/1/08 113 112 SBA (Final Maturity 9/25/23) 4.625% due 4/1/08 225 225 -------------------------------------------------------------------------- TOTAL FEDERAL AGENCY SECURITIES - VARIABLE (IDENTIFIED COST $1,588) 1,588 -------------------------------------------------------------------------- COMMERCIAL PAPER(f)--58.4% ABN-AMRO N.A Finance, Inc. 2.600% due 5/13/08 1,000 997 2.550% due 5/29/08 1,875 1,867 2.550% due 9/8/08 1,500 1,483 Air Products & Chemicals, Inc. 2.250% due 4/4/08 1,500 1,500 Archer-Daniels-Midland Co. 2.850% due 5/30/08 2,020 2,011 2.680% due 6/20/08 2,020 2,008
PAR VALUE VALUE (000) (000) ------- -------- AT&T, Inc. 2.600% due 4/17/08 $ 2,335 $ 2,332 2.800% due 4/24/08 2,020 2,016 Bank of America Corp. 2.550% due 4/23/08 875 874 2.580% due 6/2/08 350 348 2.900% due 6/2/08 1,000 995 2.960% due 6/5/08 2,000 1,989 Cargill, Inc. 3.040% due 4/24/08 2,000 1,996 3.000% due 5/7/08 2,900 2,891 Cintas Corp. 2.850% due 4/1/08 2,570 2,570 2.290% due 4/18/08 435 435 Coca-Cola Co. 2.600% due 5/23/08 625 623 Danaher Corp. 2.250% due 4/23/08 575 574 Danske Corp. 2.800% due 4/14/08 500 499 Eaton Corp. 4.500% due 4/3/08 610 610 3.040% due 4/28/08 1,000 998 4.440% due 4/30/08 2,500 2,491 Emerson Electric Co. 2.450% due 4/7/08 2,100 2,099 General Electric Capital Corp. 2.910% due 4/21/08 2,000 1,997 2.880% due 5/16/08 2,285 2,277 Govco, Inc. 3.000% due 5/15/08 1,900 1,893 3.010% due 5/15/08 1,400 1,395 2.500% due 6/5/08 1,700 1,692 Harley-Davidson Funding Corp. 2.600% due 4/10/08 2,345 2,343 International Lease Finance Corp. 2.780% due 5/9/08 2,500 2,493 2.730% due 5/21/08 2,000 1,992 NetJets, Inc. 2.750% due 4/4/08 1,000 1,000 Private Export Fund Corp. 2.800% due 4/2/08 1,660 1,660 UBS Finance Delaware LLC 3.825% due 4/14/08 1,075 1,073 3.050% due 5/12/08 835 832 3.030% due 5/27/08 1,500 1,493 3.000% due 7/31/08 1,435 1,421 Wells Fargo & Co. 2.420% due 4/28/08 810 809 -------------------------------------------------------------------------- TOTAL COMMERCIAL PAPER (IDENTIFIED COST $58,576) 58,576 --------------------------------------------------------------------------
PAR VALUE VALUE (000) (000) ------- -------- MEDIUM TERM NOTES--21.6% Associates Corp. of North America 6.250% due 11/1/08 $ 1,000 $ 1,018 Bank of America Corp. 3.250% due 8/15/08 500 500 Beneficial Corp. 6.470% due 11/17/08 875 892 Citigroup, Inc. 3.291% due 1/30/09 (c) 400 399 Danske Bank A/S 144A (Denmark) 3.084% due 4/20/09 (b)(e) 2,000 2,000 Danske Corp. 3.050% due 4/9/09 2,500 2,500 General Electric Capital Corp. 8.500% due 7/24/08 600 608 HSBC Finance Corp. 2.930% due 2/1/09 (c) 700 702 5.875% due 2/1/09 500 510 HSH Nordbank AG NY 144A (Germany) 2.659% due 9/22/08 (b)(c)(e) 5,000 5,000 International Lease Finance Corp. 4.350% due 9/15/08 500 502 National Australia Bank Ltd. 144A (Australia) 3.208% due 2/6/09 (b)(c)(e) 2,000 2,000 Nordea Bank AB 144A (Sweden) 3.048% due 2/6/09 (b)(c)(e) 2,000 2,000 Procter & Gamble International Funding 3.140% due 2/19/09 (c) 1,000 1,000 Wells & Fargo Co. 144A 2.855% due 2/17/09 (c) 2,000 2,000 -------------------------------------------------------------------------- TOTAL MEDIUM TERM NOTES (IDENTIFIED COST $21,631) 21,631 -------------------------------------------------------------------------- TOTAL INVESTMENTS--99.5% (IDENTIFIED COST $99,725) 99,725(a) Other assets and liabilities, net--0.5% 461 -------- NET ASSETS--100.0% $100,186 ========
FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): At March 31, 2008, 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 March 31, 2008, these securities amounted to a value of $11,000 (reported in 000s) or 11.0% 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 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. (f) The rate shown is the discount rate. (g) The maturity date shown is the reset date. See Notes to Financial Statements 31 PHOENIX MULTI-SECTOR FIXED INCOME FUND SCHEDULE OF INVESTMENTS MARCH 31, 2008 (UNAUDITED)
PAR VALUE VALUE (000) (000) ------- -------- AGENCY MORTGAGE-BACKED SECURITIES--0.6% FNMA 04-W6, 1A4 5.500% due 7/25/34 $ 984 $ 951 FNMA 05-57, CK 5.000% due 7/25/35 485 487 FNMA 05-74, AG 5.000% due 9/25/35 317 318 ---------------------------------------------------------------------------- TOTAL AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $1,776) 1,756 ---------------------------------------------------------------------------- AGENCY NON-MORTGAGE-BACKED SECURITIES--2.1% FHLMC 5.200% due 3/5/19 1,900 1,934 ---------------------------------------------------------------------------- TOTAL AGENCY NON-MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $1,865) 1,934 ---------------------------------------------------------------------------- MUNICIPAL BONDS--3.0% MASSACHUSETTS--0.2% Commonwealth of Massachusetts General Obligation Series C (FSA Insured) 5.500% due 12/1/17 270 308 -------- MINNESOTA--1.2% State of Minnesota 5.000% due 8/1/19 1,500 1,627 -------- SOUTH DAKOTA--0.2% South Dakota State Educational Enhancement Funding Corp. Taxable Series A 6.720% due 6/1/25 285 285 -------- TEXAS--1.1% City of Dallas 5.000% due 2/15/17 1,400 1,530 -------- VIRGINIA--0.3% Tobacco Settlement Financing Corp. Series A-1 Taxable 6.706% due 6/1/46 360 327 ---------------------------------------------------------------------------- TOTAL MUNICIPAL BONDS (IDENTIFIED COST $4,083) 4,077 ---------------------------------------------------------------------------- ASSET-BACKED SECURITIES--1.8% Bombardier Capital Mortgage Securitization Corp. 99-A, A3 5.980% due 1/15/18 (d) 908 856 Conseco Finance Securitizations Corp. 01-3, A4 6.910% due 5/1/33 (d) 896 932 Dunkin Securitization 06-1, M1 144A 8.285% due 6/20/31 (b) 690 604 Green Tree Financial Corp. 99-2, M2 7.210% due 12/1/30 (d) 460 65
PAR VALUE VALUE (000) (000) ------- -------- IndyMac Manufactured Housing Contract 98-1, A3 6.370% due 9/25/28 $ 721 $ 723 ---------------------------------------------------------------------------- TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $3,288) 3,180 ---------------------------------------------------------------------------- DOMESTIC CORPORATE BONDS--31.0% AEROSPACE & DEFENSE--1.3% DRS Technologies, Inc. 6.625% due 2/1/16 500 491 L-3 Communications Corp. 7.625% due 6/15/12 425 437 6.125% due 1/15/14 550 539 L-3 Communications Corp. Series B 6.375% due 10/15/15 250 246 -------- 1,713 -------- AIRLINES--2.6% American Airlines, Inc. 01-1 6.977% due 5/23/21 1,653 1,471 Continental Airlines, Inc. 98-1A 6.648% due 9/15/17 426 420 Delta Air Lines, Inc. 00-1 7.379% due 5/18/10 619 610 United Airlines, Inc. 00-2 7.032% due 10/1/10 779 771 United Airlines, Inc. 01-1 6.071% due 3/1/13 333 330 -------- 3,602 -------- APPLICATION SOFTWARE--0.2% Intuit, Inc. 5.750% due 3/15/17 265 257 -------- ASSET MANAGEMENT & CUSTODY BANKS--0.4% BlackRock, Inc. 6.250% due 9/15/17 225 231 Janus Capital Group, Inc. 6.250% due 6/15/12 375 381 -------- 612 -------- AUTOMOBILE MANUFACTURERS--0.2% Ford Motor Co. 7.450% due 7/16/31 375 249 -------- BROADCASTING & CABLE TV--2.4% Charter Communications Holdings I LLC 11.750% due 5/15/14 (d) 175 89 Charter Communications Holdings I LLC/Charter Communications Holdings I Capital Corp. 11.000% due 10/1/15 375 260 Comcast Cable Holdings LLC 7.875% due 8/1/13 500 549 COX Communications, Inc. 5.450% due 12/15/14 375 370
PAR VALUE VALUE (000) (000) ------- -------- BROADCASTING & CABLE TV--(CONTINUED) DIRECTV Holdings LLC/DIRECTV Financing Co., Inc. 6.375% due 6/15/15 $ 1,000 $ 937 EchoStar DBS Corp. 6.625% due 10/1/14 600 548 Intelsat Corp. 9.000% due 6/15/16 200 202 Viacom, Inc. 6.250% due 4/30/16 375 366 -------- 3,321 -------- BUILDING PRODUCTS--1.1% Esco Corp. 144A 8.625% due 12/15/13 (b) 600 585 Masco Corp. 5.850% due 3/15/17 540 493 Owens Corning, Inc. 6.500% due 12/1/16 495 411 -------- 1,489 -------- CASINOS & GAMING--0.9% MGM MIRAGE 8.500% due 9/15/10 300 311 Pokagon Gaming Authority 144A 10.375% due 6/15/14 (b) 117 124 River Rock Entertainment Authority (The) 9.750% due 11/1/11 250 250 Seminole Hard Rock Entertainment, Inc./Seminole Hard Rock International LLC 144A 5.300% due 3/15/14 (b)(d) 75 60 Station Casinos, Inc. 6.875% due 3/1/16 750 441 -------- 1,186 -------- CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--0.1% Terex Corp. 7.375% due 1/15/14 145 144 -------- CONSTRUCTION MATERIALS--0.2% Building Materials Corp. of America 7.750% due 8/1/14 390 283 -------- CONSUMER FINANCE--2.8% Ford Motor Credit Co. LLC 7.875% due 6/15/10 385 336 8.625% due 11/1/10 395 344 9.875% due 8/10/11 345 308 8.708% due 4/15/12 (d) 55 52 7.800% due 6/1/12 340 281 GMAC LLC 7.250% due 3/2/11 1,000 788 6.875% due 9/15/11 400 306 6.000% due 12/15/11 1,000 748 Hertz Corp. (The) 8.875% due 1/1/14 350 334 10.500% due 1/1/16 100 94 SLM Corp. 5.450% due 4/25/11 300 241 -------- 3,832 --------
See Notes to Financial Statements 32 PHOENIX MULTI-SECTOR FIXED INCOME FUND
PAR VALUE VALUE (000) (000) ------- -------- DATA PROCESSING & OUTSOURCED SERVICES--1.0% Broadridge Financial Solutions, Inc. 6.125% due 6/1/17 $ 525 $ 494 First Data Corp. 144A 9.875% due 9/24/15 (b) 325 267 Western Union Co. (The) 5.930% due 10/1/16 560 557 -------- 1,318 -------- DISTILLERS & VINTNERS--0.4% Constellation Brands, Inc. 8.375% due 12/15/14 165 171 7.250% due 9/1/16 220 215 7.250% due 5/15/17 120 117 -------- 503 -------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--0.7% Equifax, Inc. 6.300% due 7/1/17 1,000 1,021 -------- DIVERSIFIED METALS & MINING--0.2% Freeport-McMoRan Copper & Gold, Inc. (Indonesia) 6.875% due 2/1/14 (e) 320 331 -------- ELECTRIC UTILITIES--0.4% Allegheny Energy Supply 144A 8.250% due 4/15/12 (b) 145 157 Midwest Generation LLC Series B 8.560% due 1/2/16 121 132 Texas Competitive Electric Holdings Co. LLC 144A 10.250% due 11/1/15 (b) 200 200 -------- 489 -------- ELECTRICAL COMPONENTS & EQUIPMENT--0.4% General Cable Corp. 7.125% due 4/1/17 500 480 -------- ELECTRONIC MANUFACTURING SERVICES--0.4% Jabil Circuit, Inc. 144A 8.250% due 3/15/18 (b) 600 582 -------- ENVIRONMENTAL & FACILITIES SERVICES--0.1% Allied Waste North America, Inc. Series B 5.750% due 2/15/11 150 147 -------- GAS UTILITIES--0.4% AmeriGas Partners LP 7.250% due 5/20/15 500 495 -------- HEALTH CARE DISTRIBUTORS--0.2% Viant Holdings, Inc. 144A 10.125% due 7/15/17 (b) 295 240 -------- HEALTH CARE FACILITIES--0.4% HCA, Inc. 9.250% due 11/15/16 140 146 Psychiatric Solutions, Inc. 7.750% due 7/15/15 375 375 -------- 521 --------
PAR VALUE VALUE (000) (000) ------- -------- HEALTH CARE SERVICES--0.3% Quest Diagnostics, Inc. 6.400% due 7/1/17 $ 450 $ 454 -------- HEALTH CARE SUPPLIES--0.1% Bausch & Lomb, Inc. 144A 9.875% due 11/1/15 (b) 125 127 -------- HOTELS, RESORTS & CRUISE LINES--0.9% Royal Caribbean Cruises Ltd. 6.875% due 12/1/13 1,250 1,172 -------- HOUSEHOLD PRODUCTS--0.3% Yankee Acquisition Corp. Series B 9.750% due 2/15/17 535 428 -------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS--0.1% AES Corp. (The) 7.750% due 10/15/15 100 101 -------- INTEGRATED TELECOMMUNICATION SERVICES--0.7% Qwest Corp. 6.500% due 6/1/17 215 195 Windstream Corp. 8.625% due 8/1/16 500 494 7.000% due 3/15/19 250 219 -------- 908 -------- INVESTMENT BANKING & BROKERAGE--1.7% Bear Stearns Cos., Inc. (The) 7.250% due 2/1/18 700 725 Goldman Sachs Group, Inc. (The) 5.950% due 1/18/18 300 298 Lehman Brothers Holdings, Inc. 5.625% due 1/24/13 145 141 Merrill Lynch & Co., Inc. 6.110% due 1/29/37 500 396 Merrill Lynch & Co., Inc. (Brazil) 10.710% due 3/8/17 (e) 500(j) 249 Morgan Stanley 144A (Brazil) 10.090% due 5/3/17 (b)(e) 1,000(j) 479 -------- 2,288 -------- LEISURE PRODUCTS--0.2% Hasbro, Inc. 6.300% due 9/15/17 275 288 -------- LIFE SCIENCES TOOLS & SERVICES--0.4% Fisher Scientific International, Inc. 6.750% due 8/15/14 600 613 -------- MORTGAGE REITS--0.5% iStar Financial, Inc. Series B 5.950% due 10/15/13 1,000 731 -------- MOVIES & ENTERTAINMENT--0.3% Time Warner, Inc. 6.875% due 5/1/12 370 382 -------- OFFICE ELECTRONICS--0.3% Xerox Corp. 6.750% due 2/1/17 350 370 --------
PAR VALUE VALUE (000) (000) ------- -------- OIL & GAS EQUIPMENT & SERVICES--0.1% Helix Energy Solutions Group, Inc. 144A 9.500% due 1/15/16 (b) $ 200 $ 201 -------- OIL & GAS EXPLORATION & PRODUCTION--1.5% Forest Oil Corp. 144A 7.250% due 6/15/19 (b) 700 716 Plains Exploration & Production Co. 7.750% due 6/15/15 400 401 Southwestern Energy Co. 144A 7.500% due 2/1/18 (b) 350 364 Swift Energy Co. 7.625% due 7/15/11 500 497 -------- 1,978 -------- OIL & GAS REFINING & MARKETING--0.3% Tesoro Corp. 6.500% due 6/1/17 480 432 -------- OIL & GAS STORAGE & TRANSPORTATION--0.4% Buckeye Partners LP 6.050% due 1/15/18 225 230 Kinder Morgan Management Co. 5.700% due 1/5/16 400 381 -------- 611 -------- OTHER DIVERSIFIED FINANCIAL SERVICES--1.0% Bank of America Corp. 8.000% due 12/29/49 (d) 375 376 Glencore Funding LLC 144A 6.000% due 4/15/14 (b) 1,000 978 -------- 1,354 -------- PACKAGED FOODS & MEATS--0.3% Tyson Foods, Inc. 6.850% due 4/1/16 400 402 -------- PAPER PACKAGING--0.4% Jefferson Smurfit Corp. 8.250% due 10/1/12 135 122 Plastipak Holdings, Inc. 144A 8.500% due 12/15/15 (b) 500 458 -------- 580 -------- PAPER PRODUCTS--0.3% Verso Paper Holdings LLC & Verso Paper, Inc. Series B 11.375% due 8/1/16 375 346 -------- PUBLISHING--0.6% Donnelley (R.H.) Corp. 144A 8.875% due 10/15/17 (b) 275 173 Idearc, Inc. 8.000% due 11/15/16 500 326 Reader's Digest Association, Inc. (The) 144A 9.000% due 2/15/17 (b) 500 337 -------- 836 -------- RESTAURANTS--0.0% Outback Steakhouse, Inc. 144A 10.000% due 6/15/15 (b) 50 32 --------
See Notes to Financial Statements 33 PHOENIX MULTI-SECTOR FIXED INCOME FUND
PAR VALUE VALUE (000) (000) ---------- -------- SPECIALIZED CONSUMER SERVICES--0.2% Mobile Mini, Inc. 6.875% due 5/1/15 $ 250 $ 209 -------- SPECIALIZED REITS--1.3% Health Care REIT, Inc. 5.875% due 5/15/15 1,000 927 Host Hotels & Resorts LP 6.875% due 11/1/14 400 383 Realty Income Corp. 6.750% due 8/15/19 425 404 -------- 1,714 -------- STEEL--0.4% Neenah Foundry Co. 9.500% due 1/1/17 500 348 Steel Dynamics, Inc. 144A 7.375% due 11/1/12 (b) 225 228 -------- 576 -------- THRIFTS & MORTGAGE FINANCE--0.2% Residential Capital LLC 8.125% due 11/21/08 275 191 8.875% due 6/30/15 305 150 -------- 341 -------- TOBACCO--1.0% Reynolds American, Inc. 7.300% due 7/15/15 500 522 7.625% due 6/1/16 375 396 UST, Inc. 5.750% due 3/1/18 500 506 -------- 1,424 -------- WIRELESS TELECOMMUNICATION SERVICES--0.4% Nextel Communications, Inc. Series D 7.375% due 8/1/15 650 501 -------- ----------------------------------------------------------------------------- TOTAL DOMESTIC CORPORATE BONDS (IDENTIFIED COST $45,982) 42,214 ----------------------------------------------------------------------------- NON-AGENCY MORTGAGE-BACKED SECURITIES--7.3% Adjustable Rate Mortgage Trust 05-3, 2A1 4.691% due 7/25/35 (d) 873 735 American Home Mortgage Assets 07-2, M4 3.129% due 3/25/47 (d)(h) 644 257 American Tower Trust L 07-1A, C 144A 5.615% due 4/15/37 (b) 750 656 Bear Stearns Commercial Mortgage Securities 07-PW18, AM 6.084% due 6/11/50 (d) 725 675 Bear Stearns Structured Products, Inc. 04-15, A2 144A 0% due 11/27/34 (b) 89 86 Bear Stearns Structured Products, Inc. 05-10 144A 5.106% due 4/26/35 (b)(d) 337 319
PAR VALUE VALUE (000) (000) ---------- -------- Bear Stearns Structured Products, Inc. 05-20N, B 144A 6.099% due 10/25/45 (b)(d) $ 750 $ 622 Chase Mortgage Finance Corp. 06-A1, 4A1 6.042% due 9/25/36 (d) 1,187 1,208 Citicorp Mortgage Securities, Inc. 06-7, 1A1 6.000% due 12/25/36 956 935 First Horizon Asset Securities, Inc. 05-AR1, 2A1 5.005% due 4/25/35 (d) 621 622 FMAC Loan Receivables Trust 98-CA, A2 144A 6.660% due 9/15/20 (b) 186 173 Harborview Net Interest Margin Corp. 06-12, N1 144A 6.409% due 12/19/36 (b) 23 23 IndyMac Index Mortgage Loan Trust 06-AR25, 3A1 6.366% due 9/25/36 (d) 994 756 Lehman Brothers-UBS Commercial Mortgage Trust 07-C2, H 144A 5.979% due 2/15/40 (b)(d) 850 421 Lehman XS Net Interest Margin 06-GPM7, A1 144A 6.250% due 12/28/46 (b) 45 46 MASTR Alternative Net Interest Margin 06-6, N1 144A 3.606% due 9/26/46 (b)(d)(g) 86 4 MASTR Resecuritization Trust 05-1 144A 5.000% due 10/28/34 (b) 317 285 Residential Accredit Loans, Inc. 02-QS12, B1 6.250% due 9/25/32 392 176 Structured Asset Securities Corp. 03-32, 1A1 5.198% due 11/25/33 (d) 529 484 Structured Asset Securities Corp. 05-1, 6A1 6.000% due 2/25/35 864 757 Timberstar Trust 06-1, C 144A 5.884% due 10/15/36 (b) 1,000 860 Wells Fargo Mortgage Backed Securities Trust 05-5, 1A1 5.000% due 5/25/20 548 534 ----------------------------------------------------------------------------- TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $12,720) 10,634 ----------------------------------------------------------------------------- FOREIGN GOVERNMENT SECURITIES--21.5% ARGENTINA--1.8% Republic of Argentina PIK Interest Capitalization 8.280% due 12/31/33 1,141 939 Republic of Argentina Series GDP 0% due 12/15/35 (d) 12,493 1,505 -------- 2,444 --------
PAR VALUE VALUE (000) (000) ---------- -------- AUSTRALIA--3.8% Commonwealth of Australia Series 909 7.500% due 9/15/09 (i) 5,635 $ 5,236 -------- BRAZIL--3.1% Federative Republic of Brazil 12.500% due 1/5/16 2,309(j) 1,415 12.500% due 1/5/22 1,125(j) 702 10.250% due 1/10/28 3,150(j) 1,671 11.000% due 8/17/40 $ 340 456 -------- 4,244 -------- CANADA--0.2% Commonwealth of Canada 4.250% due 9/1/09 300(k) 299 -------- COLOMBIA--0.3% Republic of Colombia 12.000% due 10/22/15 600,000(l) 343 -------- GERMANY--0.8% Federal Republic of Germany 144A 3.250% due 4/17/09 (b) 650(m) 1,020 -------- HUNGARY--0.3% Republic of Hungary 6.250% due 4/24/09 65,000(n) 380 -------- INDONESIA--0.3% Republic of Indonesia 11.000% due 12/15/12 3,500,000(o) 389 -------- MALAYSIA--0.5% Malaysian Government 3.756% due 4/28/11 2,325(p) 734 -------- NEW ZEALAND--1.5% Commonwealth of New Zealand Series 708 6.000% due 7/15/08 2,685(q) 2,101 -------- NORWAY--1.8% Kingdom of Norway 5.500% due 5/15/09 12,425(r) 2,451 -------- PHILIPPINES--0.7% Republic of Philippines 7.750% due 1/14/31 850 953 -------- RUSSIA--0.1% Russian Federation RegS 7.500% due 3/31/30 (d)(f) 149 171 -------- SINGAPORE--0.7% Republic of Singapore 2.500% due 10/1/12 1,250(t) 947 -------- SOUTH AFRICA--0.4% Republic of South Africa Series R153 13.000% due 8/31/10 4,600(u) 606 --------
See Notes to Financial Statements 34 PHOENIX MULTI-SECTOR FIXED INCOME FUND
PAR VALUE VALUE (000) (000) ---------- -------- SWEDEN--0.4% Kingdom of Sweden Series 1043 5.000% due 1/28/09 3,125(v) $ 529 -------- TRINIDAD AND TOBAGO--0.1% Republic of Trinidad and Tobago RegS 9.875% due 10/1/09 (f) $ 135 148 -------- TURKEY--1.8% Republic of Turkey 0.000% due 5/6/09 2,625(w) 1,633 11.500% due 1/23/12 450 543 7.250% due 3/15/15 250 264 -------- 2,440 -------- UKRAINE--0.2% Republic of Ukraine 144A 6.580% due 11/21/16 (b) 250 249 -------- VENEZUELA--2.7% Republic of Venezuela 9.250% due 9/15/27 1,665 1,586 Republic of Venezuela RegS 5.375% due 8/7/10 (f) 2,260 2,087 -------- 3,673 ----------------------------------------------------------------------------- TOTAL FOREIGN GOVERNMENT SECURITIES (IDENTIFIED COST $28,445) 29,357 ----------------------------------------------------------------------------- FOREIGN CORPORATE BONDS(e)--14.2% BRAZIL--0.9% GTL Trade Finance, Inc. 144A 7.250% due 10/20/17 (b) 545 575 Vale Overseas Ltd. 6.250% due 1/11/16 500 501 6.250% due 1/23/17 140 140 -------- 1,216 -------- CANADA--1.3% Canadian National Resources Ltd. 5.900% due 2/1/18 300 308 Catalyst Paper Corp. 7.375% due 3/1/14 375 283 EnCana Corp. 5.900% due 12/1/17 240 246 European Investment Bank 144A 4.600% due 1/30/37 (b) 375(k) 352 Rogers Wireless Communications, Inc. 6.375% due 3/1/14 575 571 -------- 1,760 -------- CAYMAN ISLANDS--0.1% Usiminas Commercial Ltd. 144A 7.250% due 1/18/18 (b) 180 193 -------- CHILE--0.8% Empresa Nacional de Electricidad SA 8.350% due 8/1/13 350 404
PAR VALUE VALUE (000) (000) ---------- -------- CHILE--(CONTINUED) Petropower I Funding Trust 144A 7.360% due 2/15/14 (b) $ 658 $ 648 -------- 1,052 -------- CYPRUS--0.1% ABH Financial Ltd. (Alfa Markets Ltd.) 144A 8.200% due 6/25/12 (b) 150 142 -------- GERMANY--0.3% Aries Vermoegensverwaltung GmbH 144A 7.750% due 10/25/09 (b) 250(m) 417 -------- HONG KONG--0.2% China Properties Group Ltd. 144A 9.125% due 5/4/14 (b) 500 326 -------- INDIA--0.2% ICICI Bank Ltd. 144A 6.375% due 4/30/22 (b)(d) 375 323 -------- JAPAN--0.5% Resona Bank Ltd. 144A 5.850% due 9/29/49 (b)(d) 750 624 -------- KAZAKHSTAN--0.8% Kazkommerts International BV RegS 8.000% due 11/3/15 (f) 250 198 TengizChevroil Finance Co. S.A.R.L. 144A 6.124% due 11/15/14 (b) 1,000 959 -------- 1,157 -------- LUXEMBOURG--0.2% TNK-BP Finance SA 144A 7.500% due 3/13/13 (b) 325 318 -------- MALAYSIA--0.6% Malaysia International Shipping Corp. Capital Ltd. 144A 6.125% due 7/1/14 (b) 750 794 -------- MEXICO--0.3% Vitro S.A.B. de C.V. 8.625% due 2/1/12 370 343 -------- NETHERLANDS--0.6% Majapahit Holding BV 144A 7.250% due 6/28/17 (b) 825 788 -------- RUSSIA--3.2% European Bank for Reconstruction & Development 6.000% due 2/14/12 28,400(s) 1,158 Gazprom International SA 144A 7.201% due 2/1/20 (b) 856 875 Gazprom OAO (Gaz Capital SA) 144A (b) 6.212% due 11/22/16 935 867 6.510% due 3/7/22 315 282
PAR VALUE VALUE (000) (000) ---------- -------- RUSSIA--(CONTINUED) OJSC AK Transneft (TransCapitalInvest Ltd.) 144A 5.670% due 3/5/14 (b) $ 390 $ 363 OJSC Vimpel Communications (UBS Luxembourg SA) 144A 8.375% due 10/22/11 (b) 500 518 Russian Agricultural Bank OJSC (RSHB Capital SA) 144A 6.299% due 5/15/17 (b) 380 353 -------- 4,416 -------- SINGAPORE--0.3% UOB Cayman Ltd. 144A 5.796% due 12/29/49 (b)(d) 500 450 -------- SOUTH KOREA--1.2% Hynix Semiconductor, Inc. 144A 7.875% due 6/27/17 (b) 600 429 Korea Development Bank 5.300% due 1/17/13 187 192 Woori Bank 144A 6.125% due 5/3/16 (b)(d) 1,000 983 -------- 1,604 -------- SWITZERLAND--0.3% Petroplus Finance Ltd. 144A 6.750% due 5/1/14 (b) 375 344 -------- UNITED ARAB EMIRATES--0.6% Abu Dhabi National Energy Co. 144A 5.875% due 10/27/16 (b) 825 820 -------- UNITED KINGDOM--0.5% Ineos Group Holdings plc 144A 8.500% due 2/15/16 (b) 500 391 Vodafone Group plc 6.150% due 2/27/37 375 351 -------- 742 -------- UNITED STATES--0.7% Nova Chemicals Corp. 7.863% due 11/15/13 (d) 975 822 Tyco Electronic Group SA 144A 6.000% due 10/1/12 (b) 125 128 -------- 950 -------- VENEZUELA--0.5% Petroleos de Venezuela S.A. 5.250% due 4/12/17 950 625 -------- ----------------------------------------------------------------------------- TOTAL FOREIGN CORPORATE BONDS (IDENTIFIED COST $20,574) 19,404 ----------------------------------------------------------------------------- DOMESTIC CONVERTIBLE BONDS--0.2% PHARMACEUTICALS--0.2% Par Pharmaceutical Cos., Inc. 2.875% due 9/30/10 300 265 -------- ----------------------------------------------------------------------------- TOTAL DOMESTIC CONVERTIBLE BONDS (IDENTIFIED COST $267) 265 -----------------------------------------------------------------------------
See Notes to Financial Statements 35 PHOENIX MULTI-SECTOR FIXED INCOME FUND
PAR VALUE VALUE (000) (000) --------- -------- DOMESTIC LOAN AGREEMENTS--11.9% ADVERTISING--0.1% Lamar Media Corp. Tranche F 6.375% due 3/31/14 (d) $ 125 $ 122 -------- APPAREL RETAIL--0.1% HBI Branded Apparel Ltd., Inc. Tranche 2 6.994% due 3/5/14 (d) 200 195 -------- APPAREL, ACCESSORIES & LUXURY GOODS--0.4% Hanesbrands, Inc. Tranche B 5.005% due 9/5/13 (d) 126 121 Totes Isotoner Corp. Tranche 2 10.830% due 1/16/14 (d) 500 438 -------- 559 -------- AUTO PARTS & EQUIPMENT--0.4% Mark IV Industries, Inc. Tranche 2 12.668% due 12/19/11 (d) 175 101 Mark IV Industries, Inc. Tranche B 9.163% due 6/21/11 (d) 561 438 -------- 539 -------- AUTOMOBILE MANUFACTURERS--0.5% Ford Motor Co. Tranche B 8.000% due 12/15/13 (d) 372 307 General Motors Corp. Tranche B 7.615% due 11/29/13 (d) 470 418 -------- 725 -------- BROADCASTING & CABLE TV--0.5% Charter Communications Operating LLC Tranche 6.990% due 3/6/14 742 629 -------- COMMODITY CHEMICALS--0.5% Celanese Holdings LLC Tranche B 8.141% due 3/30/14 (d) 748 701 -------- CONSUMER FINANCE--0.2% Hertz Corp. Letter of Credit 7.110% due 12/21/12 (d) 50 47 Hertz Corp. Tranche B 7.100% due 12/21/12 (d) 236 220 -------- 267 -------- DATA PROCESSING & OUTSOURCED SERVICES--0.5% First Data Corp. Tranche B3 7.607% due 9/24/14 (d) 498 450 Reynolds & Reynolds Co. (The) Tranche FL 6.843% due 10/24/12 (d) 291 263 -------- 713 -------- DEPARTMENT STORES--0.8% Neiman-Marcus Group, Inc. (The) Tranche 6.515% due 4/6/13 (d) 1,213 1,125 --------
PAR VALUE VALUE (000) (000) --------- -------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--0.1% ARAMARK Corp. Letter of Credit 5.198% due 1/26/14 (d) $ 10 $ 9 ARAMARK Corp. Tranche B 6.705% due 1/26/14 (d) 158 147 -------- 156 -------- ELECTRIC UTILITIES--0.2% Energy Future Holdings Corp. Tranche B2 8.396% due 10/10/14 (d) 264 241 -------- ELECTRICAL COMPONENTS & EQUIPMENT--0.2% Baldor Electric Co. Tranche 4.969% due 1/31/14 (d) 350 335 -------- ELECTRONIC EQUIPMENT MANUFACTURERS--0.2% Metrologic Instruments, Inc. Tranche 7.830% due 12/21/13 (d) 247 226 -------- ENVIRONMENTAL & FACILITIES SERVICES--0.2% Allied Waste North America, Inc. Letter of Credit A 7.071% due 3/28/14 (d) 122 117 Allied Waste North America, Inc. Tranche B 4.598% due 3/28/14 (d) 206 195 -------- 312 -------- HEALTH CARE FACILITIES--0.5% HCA, Inc. Tranche B 7.080% due 11/18/13 (d) 262 242 Health Management Associates, Inc. Tranche B 6.588% due 2/28/14 (d) 194 169 LifePoint Hospitals, Inc. Tranche B 6.715% due 4/15/12 (d) 234 218 -------- 629 -------- HEALTH CARE SUPPLIES--0.3% Bausch & Lomb, Inc. Tranche B 7.895% due 10/26/15 (d) 399 391 Bausch & Lomb, Inc. Tranche DD 7.895% due 10/26/15 (d) 100 98 -------- 489 -------- HOUSEHOLD PRODUCTS--0.1% Yankee Candle Co., Inc. Tranche B 8.891% due 2/6/14 (d) 139 120 -------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS--0.6% NRG Energy, Inc. Letter of Credit 6.480% due 2/1/13 (d) 669 629 NRG Energy, Inc. Tranche B 6.580% due 2/1/13 (d) 247 232 -------- 861 --------
PAR VALUE VALUE (000) (000) --------- -------- INTEGRATED TELECOMMUNICATION SERVICES--0.9% Level 3 Communications, Inc. Tranche B 5.880% due 3/13/14 (d) $ 90 $ 78 NTELOS, Inc. Tranche B1 7.100% due 8/24/11 (d) 457 438 Time Warner Telecom Holdings Tranche B 5.280% due 1/7/13 (d) 746 695 -------- 1,211 -------- LEISURE FACILITIES--0.3% AMF Bowling Worldwide, Inc. Tranche B 7.854% due 5/17/13 (d) 521 430 -------- OIL & GAS EQUIPMENT & SERVICES--0.3% Helix Energy Solutions Group, Inc. Tranche 6.603% due 7/1/13 (d) 198 190 Hercules Offshore, Inc. Tranche 6.580% due 7/11/13 (d) 248 237 -------- 427 -------- PAPER PRODUCTS--0.8% Georgia-Pacific Corp. Tranche A 7.109% due 12/20/10 (d) 371 356 Georgia-Pacific Corp. Tranche B1 6.801% due 12/20/12 (d) 660 614 NewPage Corp. Tranche B 9.891% due 12/21/14 (d) 125 120 -------- 1,090 -------- PUBLISHING--0.7% Idearc, Inc. Tranche B 6.830% due 11/17/14 (d) 988 795 Tribune Co. Tranche B 7.910% due 6/4/14 (d) 213 143 -------- 938 -------- REAL ESTATE MANAGEMENT & DEVELOPMENT--0.1% Tropicana Entertainment LLC Tranche B 8.500% due 1/3/12 (d) 83 79 -------- RESTAURANTS--0.3% Burger King Corp. Tranche B1 6.375% due 6/30/12 (d) 364 359 -------- SPECIALIZED FINANCE--1.0% Solar Capital Corp. Tranche B 6.898% due 2/28/14 (d) 1,415 1,316 -------- SPECIALTY CHEMICALS--0.1% JohnsonDiversey, Inc. Tranche B 6.878% due 12/16/11 (d) 122 117 -------- TRADING COMPANIES & DISTRIBUTORS--0.2% United Rentals, Inc. Letter of Credit 6.500% due 2/14/11 70 67 United Rentals, Inc. Tranche B 5.100% due 2/14/11 (d) 165 159 -------- 226 --------
See Notes to Financial Statements 36 PHOENIX MULTI-SECTOR FIXED INCOME FUND
PAR VALUE VALUE (000) (000) --------- -------- WIRELESS TELECOMMUNICATION SERVICES--0.8% ALLTEL Communications, Inc. Tranche B2 8.691% due 5/15/15( d) $ 200 $ 180 ALLTEL Communications, Inc. Tranche B3 5.866% due 5/15/15 (d) 373 336 Cricket Communications, Inc. Tranche B 8.117% due 6/16/13 (d) 614 585 -------- 1,101 ---------------------------------------------------------------------------- TOTAL DOMESTIC LOAN AGREEMENTS (IDENTIFIED COST $17,830) 16,238 ---------------------------------------------------------------------------- FOREIGN LOAN AGREEMENTS--0.7% GERMANY--0.5% Fresenius Medical Care AG & Co. KGaA Tranche B 6.700% due 3/31/13 (d) 676 632 -------- UNITED STATES--0.2% Bausch & Lomb, Inc. Tranche 8.127% due 10/26/15 (d) 153(m) 233 -------- ---------------------------------------------------------------------------- TOTAL FOREIGN LOAN AGREEMENTS (IDENTIFIED COST $891) 865 ---------------------------------------------------------------------------- FOREIGN CREDIT LINKED NOTES--0.3% INDONESIA--0.3% Republic of Indonesia (Citigroup, Inc.) 14.000% due 6/15/09 380 335 -------- ---------------------------------------------------------------------------- TOTAL FOREIGN CREDIT LINKED NOTES (IDENTIFIED COST $349) 335 ----------------------------------------------------------------------------
VALUE SHARES (000) --------- -------- DOMESTIC CONVERTIBLE PREFERRED STOCKS--0.2% DIVERSIFIED METALS & MINING--0.2% Vale Capital Ltd. Cv. Pfd. 5.50% 4,000 $ 252 -------- ---------------------------------------------------------------------------- TOTAL DOMESTIC CONVERTIBLE PREFERRED STOCKS (IDENTIFIED COST $200) 252 ---------------------------------------------------------------------------- DOMESTIC COMMON STOCKS--0.0% INTEGRATED TELECOMMUNICATION SERVICES--0.0% AT&T Latin America Corp. Class A (c)(h)(y) 137,550 0 -------- PAPER PRODUCTS--0.0% Northampton Pulp LLC (c)(g)(y) 3,650 0 -------- ---------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $732) 0 ---------------------------------------------------------------------------- EXCHANGE TRADED FUNDS--2.6% DIAMONDS(R) Trust Series I 7,811 956 iShares MSCI EAFE (R) Index Fund 13,460 968 iShares Russell 2000 (R) Index Fund 9,854 675 PowerShares QQQ 7,000 306 SPDR Trust Series 1 5,167 682 ---------------------------------------------------------------------------- TOTAL EXCHANGE TRADED FUNDS (IDENTIFIED COST $3,948) 3,587 ---------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--98.4% (IDENTIFIED COST $142,950) 134,098 ----------------------------------------------------------------------------
PAR VALUE VALUE (000) (000) --------- -------- SHORT-TERM INVESTMENTS--0.4% COMMERCIAL PAPER(x)--0.4% Eaton Corp. 2.750% due 4/1/08 $ 585 $ 585 -------- ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $585) 585 ---------------------------------------------------------------------------- TOTAL INVESTMENTS--98.8% (IDENTIFIED COST $143,535) 134,683(a) Other assets and liabilities, net--1.2% 1,666 -------- NET ASSETS--100.0% $136,349 ========
At March 31, 2008, the Fund had entered into forward currency contracts as follows (reported in 000s):
Net Unrealized Contract In Exchange Settlement Appreciation to Receive for Date Value (Depreciation) ----------- ----------- ---------- ------- -------------- JPY 158,046 USD 1,494 5/30/08 $ 1,591 $ 97 JPY 71,284 USD 700 6/12/08 718 18 ---- $115 ====
FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): Net unrealized depreciation of investment securities is comprised of gross appreciation of $885 and gross depreciation of $10,155 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $143,953. (b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2008, these securities amounted to a value of $24,938 (reported in 000s) or 18.3% of net assets. (c) Non-income producing. (d) Variable or step coupon security; interest rate shown reflects the rate currently in effect. (e) A security is considered to be foreign if the security is issued in a foreign country. The country of risk, noted in the header, or parenthetically, is determined based on criteria described in Note 2G "Foreign security country determination" in the Notes to Financial Statements. (f) 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. (g) Illiquid and restricted security. At March 31, 2008, this security amounted to a value of $4 (reported in 000s) or 0.0% of net assets. For acquisition information, see Note 7 "Illiquid and Restricted Securities" in the Notes to Financial Statements. (h) Illiquid security. (i) Par value represents Australian Dollar. (j) Par value represents Brazilian Real. (k) Par value represents Canadian Dollar. (l) Par value represents Colombian Peso. (m) Par value represents Euro. (n) Par value represents Hungarian Forint. (o) Par Value represents Indonesian Rupiah. (p) Par Value represents Malaysian Ringgit. (q) Par value represents New Zealand Dollar. (r) Par value represents Norwegian Krone. (s) Par value represents Russian Ruble. (t) Par value represents Singapore Dollar. (u) Par value represents South African Rand. (v) Par value represents Swedish Krona. (w) Par value represents Turkish Lira. (x) The rate shown is the discount rate. (y) Security valued at fair value as determined in good faith by or under the direction of the Trustees. See Notes to Financial Statements 37 PHOENIX SENIOR FLOATING RATE FUND SCHEDULE OF INVESTMENTS MARCH 31, 2008 (UNAUDITED)
PAR VALUE VALUE (000) (000) --------- -------- FOREIGN CORPORATE BONDS(c)--3.6% UNITED STATES--3.6% Nova Chemicals Corp. 7.863% due 11/15/13 (b) $ 650 $ 548 -------- TOTAL FOREIGN CORPORATE BONDS (IDENTIFIED COST $560) 548 -------- DOMESTIC LOAN AGREEMENTS--90.4% AEROSPACE & DEFENSE--3.3% TransDigm, Inc. Tranche 6.858% due 6/23/13 (b) 520 491 -------- APPAREL, ACCESSORIES & LUXURY GOODS--2.5% Hanesbrands, Inc. Tranche B 5.005% due 9/5/13 (b) 385 372 -------- AUTOMOBILE MANUFACTURERS--6.3% Ford Motor Co. Tranche B 5.800% due 12/15/13 (b) 564 464 General Motors Corp. Tranche B 5.487% due 11/29/13 (b) 545 485 -------- 949 -------- BROADCASTING & CABLE TV--2.5% CSC Holdings, Inc. Tranche A1 4.750% due 2/24/12 (b) 399 374 -------- CASINOS & GAMING--1.5% Harrahs Operating Co., Inc. Tranche B3 8.356% due 1/28/15 (b) 250 230 -------- COMMODITY CHEMICALS--2.5% Celanese Holdings LLC Tranche B 4.612% due 3/30/14 (b) 400 375 -------- DATA PROCESSING & OUTSOURCED SERVICES--8.1% First Data Corp. Tranche B3 7.607% due 9/24/14 (b) 683 618 Reynolds & Reynolds Co. (The) Tranche FL 6.843% due 10/24/12 (b) 658 595 -------- 1,213 -------- DISTILLERS & VINTNERS--2.4% Constellation Brands, Inc. Tranche B 5.583% due 6/5/13 (b) 380 364 -------- ELECTRIC UTILITIES--4.0% Energy Future Holdings Tranche B3 6.112% due 10/10/14 (b) 665 605 -------- ENVIRONMENTAL & FACILITIES SERVICES--3.3% Allied Waste North America, Inc. Letter of Credit A 4.600% due 3/28/14 (b) 197 187
PAR VALUE VALUE (000) (000) --------- -------- ENVIRONMENTAL & FACILITIES SERVICES--(CONTINUED) Allied Waste North America, Inc. Tranche B 4.598% due 3/28/14 (b) $ 328 $ 312 -------- 499 -------- HEALTH CARE FACILITIES--8.0% Community Health Systems, Inc. Tranche DD 5.335% due 7/25/14 (b) 32 30 Community Health Systems, Inc. Tranche B 5.335% due 7/25/14 (b) 627 579 HCA, Inc. Tranche A 6.830% due 11/18/12 (b) 643 593 -------- 1,202 -------- HEALTH CARE SERVICES--2.5% DaVita, Inc. Tranche B1 4.612% due 10/5/12 (b) 400 379 -------- HEALTH CARE SUPPLIES--3.3% Bausch & Lomb, Inc. Tranche B 8.080% due 10/26/15 (b) 399 391 Bausch & Lomb, Inc. Tranche DD 7.511% due 10/26/15 (b) 100 98 -------- 489 -------- HOUSEHOLD PRODUCTS--2.2% Yankee Candle Co., Inc. Tranche B 4.870% due 2/6/14 (b) 375 328 -------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS--2.3% NRG Energy, Inc. Letter of Credit 6.480% due 2/1/13 (b) 123 116 NRG Energy, Inc. Tranche B 6.580% due 2/1/13 (b) 252 236 -------- 352 -------- INTEGRATED TELECOMMUNICATION SERVICES--9.8% NTELOS, Inc. Tranche B1 5.270% due 8/24/11 (b) 648 621 Time Warner Telecom Holdings Tranche B 5.112% due 1/7/13 (b) 514 479 Windstream Corp. Tranche B1 4.612% due 7/17/13 (b) 385 373 -------- 1,473 -------- OIL & GAS EQUIPMENT & SERVICES--5.9% Helix Energy Solutions Group, Inc. Tranche 6.603% due 7/1/13 (b) 534 512 Hercules Offshore, Inc. Tranche 6.580% due 7/11/13 (b) 387 370 -------- 882 --------
PAR VALUE VALUE (000) (000) --------- -------- PAPER PRODUCTS--6.6% Boise Paper Holdings LLC Tranche B 7.500% due 2/22/14 (b) $ 500 $ 496 Georgia-Pacific Corp. Tranche B1 5.224% due 12/20/12 (b) 524 488 -------- 984 -------- PUBLISHING--2.9% Idearc, Inc. Tranche B 6.830% due 11/17/14 (b) 534 429 -------- SPECIALIZED FINANCE--3.3% Solar Capital Corp. Tranche B 5.112% due 2/28/14 (b) 525 488 -------- SPECIALTY CHEMICALS--5.7% Compass Minerals Group, Inc. Tranche B 5.850% due 12/22/12 (b) 384 371 JohnsonDiversey, Inc. Tranche B 5.112% due 12/16/11 (b) 436 417 5.112% due 12/16/10 (b) 77 74 -------- 862 -------- WIRELESS TELECOMMUNICATION SERVICES--1.5% ALLTEL Communications, Inc. Tranche B2 8.691% due 5/15/15 (b) 250 226 -------- -------------------------------------------------------------------- TOTAL DOMESTIC LOAN AGREEMENTS (IDENTIFIED COST $13,640) 13,566 -------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--94.0% (IDENTIFIED COST $14,200) 14,114 -------------------------------------------------------------------- SHORT-TERM INVESTMENTS--18.9% FEDERAL AGENCY SECURITIES(d)--18.9% FHLB 1.500% due 4/1/08 2,840 2,840 -------- -------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $2,840) 2,840 -------------------------------------------------------------------- TOTAL INVESTMENTS--112.9% (IDENTIFIED COST $17,040) 16,954(a) Other assets and liabilities, net--(12.9)% (1,943) -------- NET ASSETS--100.0% $ 15,011 ========
See Notes to Financial Statements 38 PHOENIX SENIOR FLOATING RATE FUND FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): Net unrealized depreciation of investment securities is comprised of gross appreciation of $69 and gross depreciation of $155 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $17,040. (b) Variable or step coupon security; interest rate shown reflects the rate currently in effect. (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, or 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. See Notes to Financial Statements 39 PHOENIX INTERNATIONAL STRATEGIES FUND SCHEDULE OF INVESTMENTS MARCH 31, 2008 (UNAUDITED)
VALUE SHARES (000) --------- -------- DOMESTIC COMMON STOCKS--0.1% UNITED STATES--0.1% Chicago Bridge & Iron Co. N.V. Registered Shares (Construction & Engineering) 2,500 $ 98 -------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $112) 98 -------------------------------------------------------------------- FOREIGN COMMON STOCKS(c)--98.5% ARGENTINA--0.1% Telecom Argentina S.A. Sponsored ADR (Integrated Telecommunication Services) (b) 2,800 59 -------- AUSTRALIA--7.2% ASX Ltd. (Specialized Finance) 5,507 188 Ausenco Ltd. (Construction & Engineering) 1,620 20 AXA Asia Pacific Holdings Ltd. (Life & Health Insurance) 58,764 295 BlueScope Steel Ltd. (Steel) 36,686 331 Caltex Australia Ltd. (Oil & Gas Refining & Marketing) 3,279 39 Incitec Pivot Ltd. (Fertilizers & Agricultural Chemicals) 1,506 194 Leighton Holdings Ltd. (Construction & Engineering) 15,144 592 McPherson's Ltd. (Personal Products) 10,878 28 Orica Ltd. (Diversified Chemicals) 16,820 448 Qantas Airways Ltd. (Airlines) 274,065 984 QBE Insurance Group Ltd. (Property & Casualty Insurance) 16,500 335 Rio Tinto Ltd. (Diversified Metals & Mining) 10,259 1,149 Riversdale Mining Ltd. (Diversified Metals & Mining)(b) 6,424 49 Santos Ltd. (Oil & Gas Exploration & Production) 58,111 770 Sims Group Ltd. (Steel) 6,241 169 Westpac Banking Corp. (Diversified Banks) 12,836 279 Woodside Petroleum Ltd. (Oil & Gas Exploration & Production) 4,867 243 -------- 6,113 -------- AUSTRIA--0.0% Voestalpine AG (Steel) 164 11 -------- BELGIUM--2.5% Belgacom SA (Integrated Telecommunication Services) 5,000 222
VALUE SHARES (000) --------- -------- BELGIUM--(CONTINUED) Delhaize Group (Food Retail) 10,552 $ 830 Dexia SA (Diversified Banks) 7,588 1,071 -------- 2,123 -------- BERMUDA--0.0% Lancashire Holdings Ltd. (Multi-line Insurance) 2,244 13 -------- CANADA--1.7% Canadian Imperial Bank of Commerce (Diversified Banks) 1,300 84 CGI Group, Inc. Class A (IT Consulting & Other Services) (b) 4,700 50 Churchill Corp. (The) Class A (Construction & Engineering) (b) 600 12 Hammond Power Solutions, Inc. (Electrical Components & Equipment) (b) 2,200 23 Jean Coutu Group, Inc. (The) Class A (Drug Retail) 1,600 16 Methanex Corp. (Commodity Chemicals) 1,400 37 Petro-Canada (Integrated Oil & Gas) 1,700 74 Potash Corp. of Saskatchewan, Inc. (Fertilizers & Agricultural Chemicals) 5,800 901 Quadra Mining Ltd. (Diversified Metals & Mining) (b) 2,900 53 Research In Motion Ltd. (Communications Equipment) (b) 100 11 Rothmans, Inc. (Tobacco) 3,382 86 Sherritt International Corp. (Diversified Metals & Mining) 7,500 106 -------- 1,453 -------- CHINA--0.4% Esprit Holdings Ltd. (Apparel Retail) 17,500 210 Kazakhmys plc (Diversified Metals & Mining) 4,773 151 Truly International Holdings Ltd. (Electronic Equipment Manufacturers) 10,000 12 -------- 373 -------- DENMARK--0.9% D/S Norden (Marine) 6,780 754 -------- FINLAND--1.4% Fortum Oyj (Electric Utilities) 10,600 432 Nokia Oyj (Communications Equipment) 24,822 785 -------- 1,217 --------
VALUE SHARES (000) --------- -------- FRANCE--10.7% Alstom (Heavy Electrical Equipment) 2,151 $ 466 BNP Paribas SA (Diversified Banks) 7,896 796 Bouygues SA (Wireless Telecommunication Services) 3,600 229 Cap Gemini SA (IT Consulting & Other Services) 7,624 434 Compagnie Generale des Etablissements Michelin Class B (Tires & Rubber) 5,156 538 Credit Agricole SA (Diversified Banks) 1,652 51 France Telecom SA (Integrated Telecommunication Services) 26,686 897 LVMH Moet Hennessy Louis Vuitton SA (Apparel, Accessories & Luxury Goods) 4,174 465 PPR (Department Stores) 3,448 511 PSA Peugeot Citroen SA (Automobile Manufacturers) 17,515 1,358 Publicis Groupe (Advertising) 11,738 448 Rallye SA (Specialty Stores) 919 58 Recylex SA (Diversified Metals & Mining)(b) 2,607 63 Sanofi-Aventis SA (Pharmaceuticals) 7,000 525 Suez SA (Multi-Utilities) 4,900 322 Technip SA (Oil & Gas Equipment & Services) 3,925 306 Total SA (Integrated Oil & Gas) 10,900 810 UBISOFT Entertainment (Home Entertainment Software) (b) 934 81 Vallourec SA (Industrial Machinery) 1,200 291 Vivendi Universal SA (Movies & Entertainment) 10,683 417 -------- 9,066 -------- GERMANY--11.5% Allianz AG Registered Shares (Multi-line Insurance) 2,483 492 Arcandor AG (Department Stores) (b) 11,100 222 Arques Industries AG (Health Care Facilities) 1,070 21 Bayer AG (Diversified Chemicals) 5,200 417 Daimler AG (Automobile Manufacturers) 5,500 470 Deutsche Bank AG Registered Shares (Diversified Capital Markets) 3,700 419 Deutsche Boerse AG (Specialized Finance) 4,912 791 Deutsche Lufthansa AG Registered Shares (Airlines) 36,239 980
See Notes to Financial Statements 40 PHOENIX INTERNATIONAL STRATEGIES FUND
VALUE SHARES (000) --------- -------- GERMANY--(CONTINUED) Deutsche Telekom AG Registered Shares (Integrated Telecommunication Services) 36,043 $ 601 E.ON AG (Electric Utilities) 8,752 1,620 GEA Group AG (Industrial Machinery) (b) 9,217 310 MAN AG (Industrial Machinery) 9,292 1,234 MTU Aero Engines Holding AG (Aerospace & Defense) 1,138 48 Muenchener Rueckversicherungs- Gesellschaft AG Registered Shares (Reinsurance) 4,436 868 Norddeutsche Affinerie AG (Diversified Metals & Mining) 1,410 56 Salzgitter AG (Steel) 5,479 953 Symrise AG (Fertilizers & Agricultural Chemicals) (b) 8,295 214 ThyssenKrupp AG (Steel) 599 34 -------- 9,750 -------- GREECE--0.5% Alpha Bank AE (Diversified Banks) 13,145 436 -------- HONG KONG--1.9% Bank of East Asia Ltd. (Diversified Banks) 49,000 245 Cheung Kong Holdings Ltd. (Real Estate Management & Development) 25,000 355 China Mobile Ltd. (Wireless Telecommunication Services) 4,000 60 Chun Wo Development Holdings Ltd. (Construction & Engineering) 94,000 13 Hang Lung Properties Ltd. (Real Estate Management & Development) 125,000 443 Sinolink Worldwide Holdings Ltd. (Real Estate Management & Development) 174,000 26 Television Broadcasts Ltd. (Broadcasting & Cable TV) 57,000 305 VTech Holdings Ltd. (Communications Equipment) 29,998 146 -------- 1,593 -------- ISRAEL--0.1% Partner Communications Co. Ltd. ADR (Wireless Telecommunication Services) 2,300 52 -------- ITALY--2.4% Banca Popolare dell'Emilia Romagna Scrl (Regional Banks) 2,095 46 Enel S.p.A. (Electric Utilities) 38,665 410 ENI S.p.A. (Integrated Oil & Gas) 24,549 837 Fiat S.p.A. (Automobile Manufacturers) 14,327 331 Indesit Co. S.p.A. (Household Appliances) 3,705 48
VALUE SHARES (000) --------- -------- ITALY--(CONTINUED) Istituto Finanziario Industriale S.p.A. (Multi-Sector Holdings) (b) 1,212 $ 34 UniCredito Italiano S.p.A. (Diversified Banks) 51,700 346 -------- 2,052 -------- JAPAN--21.2% Aisin Seiko Co. Ltd. (Auto Parts & Equipment) 26,000 970 Allied Telesis Holdings KK (Communications Equipment) (b) 20,600 18 Ardepro Co. Ltd. (Real Estate Management & Development) 499 25 Asahi Kasei Corp. (Commodity Chemicals) 20,000 104 Aucnet, Inc. (Education Services) 1,000 11 Bank of Yokohama Ltd. (The) (Regional Banks) 31,000 211 Chiba Bank Ltd. (The) (Regional Banks) 14,000 95 Chugoku Bank Ltd. (The) (Regional Banks) 2,000 29 Chuo Denki Kogyo Co. Ltd. (Diversified Metals & Mining) 3,000 31 Create SD Co. Ltd. (Drug Retail) 1,500 35 Daihatsu Motor Co. Ltd. (Automobile Manufacturers) 23,000 276 East Japan Railway Co. (Railroads) 67 557 FamilyMart Co. Ltd. (Food Retail) 5,700 204 FANUC Ltd. (Industrial Machinery) 4,900 466 Fuji Heavy Industries (Automobile Manufacturers) 20,000 84 Fuji Machine Manufacturing Co. Ltd. (Industrial Machinery) 400 8 Geo Corp. (Computer & Electronics Retail) 61 50 Hitachi Construction Machinery Co. Ltd. (Construction & Farm Machinery & Heavy Trucks) 17,700 443 Hitachi Ltd. (Electronic Equipment Manufacturers) 192,000 1,138 Hyakujushi Bank Ltd. (The) (Regional Banks) 2,000 11 IDU Co. (Diversified Commercial & Professional Services) 18 13 Inpex Holdings, Inc. (Oil & Gas Exploration & Production) 42 468 Isetan Co. Ltd. (Department Stores) (h) 27,200 314 Iyo Bank Ltd. (The) (Regional Banks) 9,000 96 JFE Shoji Holdings, Inc. (Trading Companies & Distributors) 9,000 63
VALUE SHARES (000) --------- -------- JAPAN--(CONTINUED) Juki Corp. (Household Appliances) 8,000 $ 30 Juroku Bank Ltd. (The) (Regional Banks) 9,000 52 Kagoshima Bank Ltd. (The) (Regional Banks) 7,000 52 Kao Corp. (Household Products) 16,000 453 Keiyo Bank Ltd. (The) (Regional Banks) 5,000 32 Kosaido Co. Ltd. (Commercial Printing) 2,000 13 Kyoei Steel Ltd. (Steel) 900 24 Leopalace21 Corp. (Real Estate Management & Development) 9,500 154 Makita Corp. (Household Appliances) 13,200 414 Marubeni Corp. (Trading Companies & Distributors) 85,000 619 Maruetsu, Inc. (The) (Food Retail) (b) 4,000 37 Meiji Dairies Corp. (Packaged Foods & Meats) 6,000 36 Mitsubishi Corp. (Trading Companies & Distributors) 15,400 465 Mitsubishi UFJ Financial Group, Inc. (Diversified Banks) 34,000 293 Mitsui Fudosan Co. Ltd. (Real Estate Management & Development) 25,000 496 Mitsumi Electric Co. Ltd. (Computer Storage & Peripherals) 13,100 414 Mizuho Trust & Banking Co. Ltd. (Diversified Banks) 119,000 171 Murata Manufacturing Co. Ltd. (Electronic Equipment Manufacturers) 7,900 392 Nintendo Co. Ltd. (Home Entertainment Software) 3,600 1,856 Nippon Electric Glass Co. Ltd. (Electronic Equipment Manufacturers) 28,000 433 Nippon Game Card Corp. (Leisure Products) 9 12 Nippon Oil Corp. (Oil & Gas Refining & Marketing) 69,000 431 Nippon Shinyaku Co. Ltd. (Pharmaceuticals) 2,000 21 Nisshin Steel Co. Ltd. (Steel) 58,000 201 Nomura Holdings, Inc. (Investment Banking & Brokerage) 16,300 244 Nomura Research Institute Ltd. (IT Consulting & Other Services) 17,600 460 Ogaki Kyoritsu Bank Ltd. (The) (Regional Banks) 3,000 16 Okinawa Electric Power Co. Inc. (The) (Electric Utilities) 300 12 Pioneer Corp. (Consumer Electronics) 21,600 215
See Notes to Financial Statements 41 PHOENIX INTERNATIONAL STRATEGIES FUND
VALUE SHARES (000) --------- -------- JAPAN--(CONTINUED) Sanyo Electric Co. Ltd. (Consumer Electronics) (b) 89,000 $ 188 Seiko Epson Corp. (Computer Storage & Peripherals) 900 24 Sekisui House Ltd. (Homebuilding) 36,000 333 Shin-Etsu Chemical Co. Ltd. (Specialty Chemicals) 6,100 315 Siix Corp. (Trading Companies & Distributors) 2,100 15 Sojitz Corp. (Trading Companies & Distributors) 62,000 205 Sumikin Bussan Corp. (Trading Companies & Distributors) 5,000 16 Sumitomo Mitsui Financial Group, Inc. (Diversified Banks) 209 1,375 Tabuchi Electric Co. Ltd. (Electrical Components & Equipment) 4,000 10 Takeda Pharmaceutical Co. Ltd. (Pharmaceuticals) 10,100 506 Tohto Suisan Co. Ltd. (Food Distributors) 2,000 3 Tokai Rika Co. Ltd. (Auto Parts & Equipment) 1,800 47 Tokyo Dome Corp. (Leisure Facilities) 5,000 21 Toshiba Plant Systems & Services Corp. (Construction & Engineering) 5,000 39 Toyo Kohan Co. Ltd. (Steel) 3,000 16 Toyoda Gosei Co. Ltd. (Auto Parts & Equipment) 3,000 113 Toyota Auto Body Co. Ltd. (Auto Parts & Equipment) 1,300 26 Toyota Motor Corp. (Automobile Manufacturers) 10,500 524 TS Tech Co. Ltd. (Tires & Rubber) 2,200 40 Yamaguchi Financial Group, Inc. (Regional Banks) 40 --(i) Yamaha Motor Co. Ltd. (Motorcycle Manufacturers) 14,300 263 Yamato Kogyo Co. Ltd. (Steel) 3,100 125 -------- 17,972 -------- LUXEMBOURG--0.6% ArcelorMittal (Steel) 6,604 541 -------- MEXICO--0.5% Axtel S.A.B. de C.V. (Integrated Telecommunication Services) (b) 12,500 27 Grupo Mexico S.A.B. de C.V. Series B (Diversified Metals & Mining) 16,260 108 Telefonos de Mexico S.A.B. de C.V. Series L (Integrated Telecommunication Services) 128,200 242 -------- 377 --------
VALUE SHARES (000) --------- -------- NETHERLANDS--6.6% ASML Holding N.V. (Semiconductor Equipment) (b) 15,200 $ 374 Draka Holding N.V. (Electrical Components & Equipment) 2,305 74 Heineken N.V. (Brewers) 25,792 1,498 Hunter Douglas N.V. (Home Furnishings) 1,830 124 ING Groep N.V. (Other Diversified Financial Services) 54,204 2,030 Koninklijke Ahold N.V. (Food Retail) (b) 10,070 149 OCE N.V. (Office Electronics) (g) 103 2 OCE N.V. (Office Electronics) (e) 2,300 38 Unilever N.V. (Packaged Foods & Meats) 25,300 850 Wolters Kluwer N.V. (Publishing) 15,800 418 -------- 5,557 -------- NEW ZEALAND--0.0% Fletcher Building Ltd. (Construction Materials) 5,455 36 -------- NORWAY--0.0% Belships ASA (Marine) 1,000 3 -------- RUSSIA--1.3% LUKOIL Sponsored ADR (Integrated Oil & Gas) 10,610 907 VTB Bank OJSC Sponsored GDR (Regional Banks) (b) 29,239 210 -------- 1,117 -------- SINGAPORE--1.0% CapitaLand Ltd. (Real Estate Management & Development) 84,000 388 Golden Agri-Resources Ltd. (Agricultural Products) 134,000 97 Jardine Cycle & Carriage Ltd. (Distributors) 20,000 284 Neptune Orient Lines Ltd. (Marine) 15,000 35 Rotary Engineering Ltd. (Construction & Engineering) 20,000 13 Singapore Petroleum Co. Ltd. (Oil & Gas Refining & Marketing) 8,000 39 Swiber Holdings Ltd. (Oil & Gas Equipment & Services) (b) 10,000 18 -------- 874 -------- SOUTH KOREA--0.5% Honam Petrochemical Corp. (Fertilizers & Agricultural Chemicals) 711 58 KT Corp. (Integrated Telecommunication Services) 8,460 401 -------- 459 -------- SPAIN--1.4% Banco Santander SA (Diversified Banks) 17,951 357
VALUE SHARES (000) --------- -------- SPAIN--(CONTINUED) Construcciones y Auxiliar de Ferrocarriles SA (Construction & Farm Machinery & Heavy Trucks) 88 $ 39 Telefonica SA (Integrated Telecommunication Services) 27,700 796 -------- 1,192 -------- SWEDEN--1.1% Electrolux AB Series B (Household Appliances) 9,766 160 JM AB (Construction & Engineering) 5,068 119 NCC AB Class B (Construction & Engineering) 1,600 47 Skanska AB Class B (Construction & Engineering) 18,300 367 Telefonaktiebolaget LM Ericsson Class B (Communications Equipment) 122,900 241 -------- 934 -------- SWITZERLAND--5.4% Credit Suisse Group Registered Shares (Diversified Capital Markets) 11,900 606 Galenica AG Registered Shares (Health Care Distributors) 423 140 Georg Fisher AG Registered Shares (Industrial Machinery) (b) 212 105 Holcim Ltd. Registered Shares (Construction Materials) 4,500 473 Roche Holding AG Registered Shares (Pharmaceuticals) 4,959 933 Swatch Group AG (The) (Apparel, Accessories & Luxury Goods) 394 105 Zurich Financial Services AG Registered Shares (Multi-line Insurance) 6,907 2,175 -------- 4,537 -------- TAIWAN--0.5% Taiwan Semiconductor Manufacturing Co. Ltd. Sponsored ADR (Semiconductors) 35,539 365 Taiwan Surface Mounting Technology Co. Ltd. (Electronic Equipment Manufacturers) 8,050 16 -------- 381 -------- THAILAND--0.1% CalComp Electronics Thailand PCL (Electronic Equipment Manufacturers) 229,000 51 -------- TURKEY--0.2% Dogan Sirketler Grubu Holdings A.S. (Industrial Machinery) (b) 74,488 75 Sekerbank T.A.S. (Regional Banks) (b) 10,346 20
See Notes to Financial Statements 42 PHOENIX INTERNATIONAL STRATEGIES FUND
VALUE SHARES (000) --------- -------- TURKEY--(CONTINUED) Tupras-Turkiye Petro Rafinerileri A.S. (Oil & Gas Refining & Marketing) 2,910 $ 64 -------- 159 -------- UNITED KINGDOM--16.8% 3i Group plc (Asset Management & Custody Banks) 26,374 434 Amec plc (Construction & Engineering) 4,171 60 Anglo American plc (Diversified Metals & Mining) 2,335 140 Antofagasta plc (Diversified Metals & Mining) 111,000 1,544 AstraZeneca plc (Pharmaceuticals) 30,856 1,154 Aviva plc (Multi-line Insurance) 27,200 333 BAE Systems plc (Aerospace & Defense) 57,000 549 Barclays plc (Diversified Banks) 41,600 374 BP plc (Integrated Oil & Gas) 39,113 397 British Airways plc (Airlines) (b) 57,202 266 British Sky Broadcasting Group plc (Broadcasting & Cable TV) 44,000 486 BT Group plc (Integrated Telecommunication Services) 173,503 748 Catlin Group Ltd. (Property & Casualty Insurance) 1,256 11 Centrica plc (Multi-Utilities) 27,133 161 easyJet plc (Airlines) (b) 22,200 164 GlaxoSmithKline plc (Pharmaceuticals) 33,400 707 IG Group Holdings plc (Investment Banking & Brokerage) 9,348 61 Johnson Matthey plc (Specialty Chemicals) 7,354 293 Legal & General Group plc (Life & Health Insurance) 187,220 470
VALUE SHARES (000) --------- -------- UNITED KINGDOM--(CONTINUED) Micro Focus International plc (Application Software) 8,900 $ 34 National Grid plc (Multi-Utilities) 30,185 414 NETeller plc (Education Services) (b) 12,727 14 Next plc (Department Stores) 8,018 181 Petrofac Ltd. (Oil & Gas Equipment & Services) 4,762 53 Rio Tinto plc (Diversified Metals & Mining) 5,551 576 Rolls-Royce Group plc (Aerospace & Defense) (b) 48,290 386 Rolls-Royce Group plc Class B (Aerospace & Defense) 4,326,784 9 Royal Bank of Scotland Group plc (Diversified Banks) 12,892 86 Royal Dutch Shell plc Class A (Integrated Oil & Gas) (f) 13,100 452 Royal Dutch Shell plc Class A (Integrated Oil & Gas) (d) 70,999 2,450 Schroders plc (Asset Management & Custody Banks) 5,749 107 Smith (WH) plc (Specialty Stores) 5,192 38 Smiths Group plc (Industrial Conglomerates) 17,266 322 Sportingbet plc (Casinos & Gaming) (b) 16,121 12 Tanfield Group plc (Construction & Farm Machinery & Heavy Trucks) (b) 13,132 25 Thomas Cook Group plc (Hotels, Resorts & Cruise Lines) 12,384 71 THUS Group plc (Alternative Carriers) (b) 8,108 19 Vodafone Group plc (Wireless Telecommunication Services) 190,979 572 Wolseley plc (Trading Companies & Distributors) 9,097 96 -------- 14,269 --------
VALUE SHARES (000) --------- -------- UNITED STATES--0.0% Nova Chemicals Corp. (Commodity Chemicals) 1,485 36 -------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $77,248) 83,560 -------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--98.6% (IDENTIFIED COST $77,360) 83,658 --------------------------------------------------------------------
PAR VALUE (000) -------- SHORT-TERM INVESTMENTS--0.2% FEDERAL AGENCY SECURITIES(j)--0.2% FHLB 2.020% due 4/2/08 $ 180 180 -------- -------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $180) 180 -------------------------------------------------------------------- TOTAL INVESTMENTS--98.8% (IDENTIFIED COST $77,540) 83,838(a) Other assets and liabilities, net--1.2% 979 -------- NET ASSETS--100.0% $ 84,817 ========
FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): Net unrealized appreciation of investment securities is comprised of gross appreciation of $13,442 and gross depreciation of $7,357 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $77,753. (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 China exchange. (f) Shares traded on London Exchange. (g) Shares traded on Frankfurt Exchange. (h) Illiquid security. Security valued at fair value as determined in good faith by or under the direction of the Trustees. At March 31, 2008, these securities amounted to a value of $314 (reported in 000s) or 0.4% of net assets. (i) Amount is less than $500. (j) The rate shown is the discount rate. See Notes to Financial Statements 43 PHOENIX WORLDWIDE STRATEGIES FUND SCHEDULE OF INVESTMENTS MARCH 31, 2008 (Unaudited)
VALUE SHARES (000) --------- --------- DOMESTIC COMMON STOCKS--28.6% UNITED STATES--28.6% Abbott Laboratories (Pharmaceuticals) 860 $ 47 Abercrombie & Fitch Co. Class A (Apparel Retail) 250 18 Acuity Brands, Inc. (Electrical Components & Equipment) 460 20 Aeropostale, Inc. (Apparel Retail) (b) 660 18 Aetna, Inc. (Managed Health Care) 3,850 162 AFLAC, Inc. (Life & Health Insurance) 2,520 164 AGCO Corp. (Construction & Farm Machinery & Heavy Trucks) (b) 1,510 90 Agilent Technologies, Inc. (Electronic Equipment Manufacturers) (b) 2,500 75 AK Steel Holding Corp. (Steel) 2,320 126 Allied Waste Industries, Inc. (Environmental & Facilities Services) (b) 2,240 24 Altria Group, Inc. (Tobacco) 4,690 104 American Capital Strategies Ltd. (Asset Management & Custody Banks) 680 23 American Express Co. (Consumer Finance) 2,050 90 American International Group, Inc. (Multi-line Insurance) 6,450 279 Ameriprise Financial, Inc. (Asset Management & Custody Banks) 1,950 101 Amkor Technology, Inc. (Semiconductors) (b) 3,240 35 AMR Corp. (Airlines) (b) 2,240 20 Anheuser-Busch Cos., Inc. (Brewers) 4,240 201 Annaly Capital Management, Inc. (Mortgage REITs) 8,390 129 AON Corp. (Insurance Brokers) 2,380 96 Applied Materials, Inc. (Semiconductor Equipment) 9,100 178 Arrow Electronics, Inc. (Technology Distributors) (b) 470 16 AT&T, Inc. (Integrated Telecommunication Services) 22,859 876 Automatic Data Processing, Inc. (Data Processing & Outsourced Services) 3,820 162 Ball Corp. (Metal & Glass Containers) 650 30 Bank of America Corp. (Other Diversified Financial Services) 17,510 664 Bank of Hawaii Corp. (Regional Banks) 390 19
VALUE SHARES (000) --------- --------- UNITED STATES--(CONTINUED) Bank of New York Mellon Corp. (The) (Asset Management & Custody Banks) 5,293 $ 221 Baxter International, Inc. (Health Care Equipment) 3,220 186 Best Buy Co., Inc. (Computer & Electronics Retail) 2,540 105 Big Lots, Inc. (General Merchandise Stores) (b) 2,290 51 BJ's Wholesale Club, Inc. (Hypermarkets & Super Centers)(b) 2,630 94 BMC Software, Inc. (Systems Software) (b) 1,880 61 Boeing Co. (The) (Aerospace & Defense) 4,200 312 Bristol-Myers Squibb Co. (Pharmaceuticals) 8,620 184 CBS Corp. Class B (Broadcasting & Cable TV) 7,390 163 Cephalon, Inc. (Biotechnology) (b) 1,830 118 Chevron Corp. (Integrated Oil & Gas) 2,080 178 Chubb Corp. (The) (Property & Casualty Insurance) 2,680 133 CIGNA Corp. (Managed Health Care) 2,510 102 Cincinnati Financial Corp. (Property & Casualty Insurance) 1,140 43 Cisco Systems, Inc. (Communications Equipment)(b) 18,990 457 Citigroup, Inc. (Other Diversified Financial Services) 2,010 43 Clorox Co. (The) (Household Products) 2,990 169 Coach, Inc. (Apparel, Accessories & Luxury Goods) (b) 1,500 45 Coca-Cola Co. (The) (Soft Drinks) 2,730 166 Coca-Cola Enterprises, Inc. (Soft Drinks) 7,300 177 ConocoPhillips (Integrated Oil & Gas) 8,210 626 Continental Airlines, Inc. Class B (Airlines) (b) 720 14 Corning, Inc. (Communications Equipment) 1,330 32 Coventry Health Care, Inc. (Managed Health Care) (b) 560 23 Cummins, Inc. (Construction & Farm Machinery & Heavy Trucks) 500 23 Devon Energy Corp. (Oil & Gas Exploration & Production) 330 34 Dollar Tree, Inc. (General Merchandise Stores) (b) 1,120 31 Donnelley (R.R.) & Sons Co. (Commercial Printing) 3,900 118 Dover Corp. (Industrial Machinery) 1,500 63
VALUE SHARES (000) --------- --------- UNITED STATES--(CONTINUED) Dow Chemical Co. (The) (Diversified Chemicals) 2,670 $ 98 Dresser-Rand Group, Inc. (Oil & Gas Equipment & Services)(b) 1,420 44 du Pont (E.I.) de Nemours & Co. (Diversified Chemicals) 4,760 223 Dun & Bradstreet Corp. (Diversified Commercial & Professional Services) 890 72 Eastman Kodak Co. (Photographic Products) 2,030 36 Eaton Corp. (Industrial Machinery) 2,810 224 eBay, Inc. (Internet Software & Services) (b) 7,840 234 Electronic Data Systems Corp. (Data Processing & Outsourced Services) 3,010 50 Embarq Corp. (Integrated Telecommunication Services) 1,430 57 Emerson Electric Co. (Electrical Components & Equipment) 5,920 305 Emulex Corp. (Computer Storage & Peripherals) (b) 3,850 63 Endo Pharmaceuticals Holdings, Inc. (Pharmaceuticals)(b) 1,740 42 ENSCO International, Inc. (Oil & Gas Drilling) 550 34 Expedia, Inc. (Internet Retail) (b) 1,630 36 Exxon Mobil Corp. (Integrated Oil & Gas) 16,970 1,435 Federated Investors, Inc. Class B (Asset Management & Custody Banks) 1,810 71 FirstEnergy Corp. (Electric Utilities) 2,840 195 Ford Motor Co. (Automobile Manufacturers)(b) 4,630 26 Forest Laboratories, Inc. (Pharmaceuticals)(b) 2,760 110 Franklin Resources, Inc. (Asset Management & Custody Banks) 1,660 161 Gap, Inc. (The) (Apparel Retail) 4,950 97 Gardner Denver, Inc. (Industrial Machinery) (b) 1,030 38 General Dynamics Corp. (Aerospace & Defense) 970 81 General Motors Corp. (Automobile Manufacturers) 2,480 47 Genworth Financial, Inc. Class A (Multi-line Insurance) 930 21 Goldman Sachs Group, Inc. (The) (Investment Banking & Brokerage) 410 68 GrafTech International Ltd. (Electrical Components & Equipment) (b) 1,260 20
See Notes to Financial Statements 44 PHOENIX WORLDWIDE STRATEGIES FUND
VALUE SHARES (000) --------- --------- UNITED STATES--(CONTINUED) Great Atlantic & Pacific Tea Co., Inc. (The) (Food Retail) (b) 1,520 $ 40 Hartford Financial Services Group, Inc. (The) (Multi-line Insurance) 530 40 Hasbro, Inc. (Leisure Products) 1,060 30 Hewlett-Packard Co. (Computer Hardware) 11,230 513 Honeywell International, Inc. (Aerospace & Defense) 3,520 199 Host Hotels & Resorts, Inc. (Specialized REITs) 2,580 41 IAC/InterActiveCorp (Internet Retail) (b) 3,140 65 Integrated Device Technology, Inc. (Semiconductors) (b) 4,560 41 Intel Corp. (Semiconductors) 14,880 315 International Business Machines Corp. (Computer Hardware 6,950 800 Invitrogen Corp. (Life Sciences Tools & Services) (b) 750 64 iStar Financial, Inc. (Mortgage REITs) 3,560 50 JDS Uniphase Corp. (Communications Equipment) (b) 3,310 44 Johnson & Johnson (Pharmaceuticals) 11,050 717 Jones Lang LaSalle, Inc. (Real Estate Management & Development) 340 26 JPMorgan Chase & Co. (Other Diversified Financial Services) 14,650 629 KeyCorp (Regional Banks) 2,550 56 Kimberly-Clark Corp. (Household Products) 1,160 75 King Pharmaceuticals, Inc. (Pharmaceuticals) (b) 1,710 15 Kroger Co. (The) (Food Retail) 3,710 94 Lear Corp. (Auto Parts & Equipment) (b) 3,620 94 Legg Mason, Inc. (Asset Management & Custody Banks) 420 24 Lincoln National Corp. (Life & Health Insurance) 3,220 167 Lockheed Martin Corp. (Aerospace & Defense) 2,700 268 Loews Corp. - Carolina Group (Tobacco) 3,020 219 Lubrizol Corp. (The) (Specialty Chemicals) 1,610 89 Macy's, Inc. (Department Stores) 5,040 116 Massey Energy Co. (Coal & Consumable Fuels) 3,420 125 McAfee, Inc. (Systems Software) (b) 800 26 McDonald's Corp. (Restaurants) 7,590 423 Medco Health Solutions, Inc. (Health Care Services)(b) 490 21 Medicis Pharmaceutical Corp. Class A (Pharmaceuticals) 2,370 47 MEMC Electronic Materials, Inc. (Semiconductor Equipment) (b) 700 50 Men's Wearhouse, Inc. (The) (Apparel Retail) 880 20
VALUE SHARES (000) --------- --------- UNITED STATES--(CONTINUED) Merck & Co., Inc. (Pharmaceuticals) 10,980 $ 417 Metavante Technologies, Inc. (Data Processing & Outsourced Services) (b) 3,500 70 MetLife, Inc. (Life & Health Insurance) 7,010 422 Microsoft Corp. (Systems Software) 31,000 880 National Oilwell Varco, Inc. (Oil & Gas Equipment & Services) (b) 3,300 193 NBTY, Inc. (Personal Products) (b) 1,370 41 NetApp, Inc. (Computer Storage & Peripherals) (b) 3,040 61 Newell Rubbermaid, Inc. (Housewares & Specialties) 2,640 60 NIKE, Inc. Class B (Footwear) 3,080 209 Noble Energy, Inc. (Oil & Gas Exploration & Production) 380 28 Norfolk Southern Corp. (Railroads) 1,460 79 Northern Trust Corp. (Asset Management & Custody Banks 2,240 149 Northrop Grumman Corp. (Aerospace & Defense) 1,680 131 Novellus Systems, Inc. (Semiconductor Equipment) (b) 2,700 57 NVIDIA Corp. (Semiconductors) (b) 3,620 72 Occidental Petroleum Corp. (Integrated Oil & Gas) 10,420 762 Omnicom Group, Inc. (Advertising) 1,900 84 Oracle Corp. (Systems Software) (b) 15,980 313 Owens-Illinois, Inc. (Metal & Glass Containers) (b) 940 53 Packaging Corporation of America (Paper Packaging) 2,740 61 Parker Hannifin Corp. (Industrial Machinery) 1,885 131 Pepsi Bottling Group, Inc. (The) (Soft Drinks) 2,989 101 Perini Corp. (Construction & Engineering) (b) 1,480 54 Pfizer, Inc. (Pharmaceuticals) 35,750 748 Philadelphia Consolidated Holding Co. (Property & Casualty Insurance)(b) 500 16 Philip Morris International, Inc. (Tobacco) (b) 4,690 237 PPG Industries, Inc. (Diversified Chemicals) 1,780 108 Principal Financial Group, Inc. (The) (Life & Health Insurance) 2,800 156 Procter & Gamble Co. (The) (Household Products) 2,160 151 Prudential Financial, Inc. (Life & Health Insurance) 3,230 253 Public Service Enterprise Group, Inc. (Multi-Utilities) 5,670 228 QLogic Corp. (Computer Storage & Peripherals) (b) 2,130 33
VALUE SHARES (000) --------- --------- UNITED STATES--(CONTINUED) Qwest Communications International, Inc. (Integrated Telecommunication Services) 8,300 $ 38 RadioShack Corp. (Computer & Electronics Retail) 3,520 57 Raytheon Co. (Aerospace & Defense) 1,880 121 Regions Financial Corp. (Regional Banks) 3,050 60 Reynolds American, Inc. (Tobacco) 500 30 SEI Investments Co. (Asset Management & Custody Banks) 2,630 65 Sherwin-Williams Co. (The) (Home Improvement Retail) 1,150 59 Southern Copper Corp. (Diversified Metals & Mining) 1,020 106 StanCorp Financial Group, Inc. (Life & Health Insurance) 450 21 Stanley Works (The) (Household Appliances) 1,160 55 State Street Corp. (Asset Management & Custody Banks) 3,190 252 Stone Energy Corp. (Oil & Gas Exploration & Production) (b) 770 40 Sunstone Hotel Investors, Inc. (Specialized REITs) 1,280 21 SunTrust Banks, Inc. (Regional Banks) 500 28 SUPERVALU, Inc. (Food Retail) 2,130 64 Symantec Corp. (Systems Software) (b) 8,270 137 TD Ameritrade Holding Corp. (Investment Banking & Brokerage) (b) 3,510 58 Teleflex, Inc. (Industrial Conglomerates) 710 34 Telephone & Data Systems, Inc. (Wireless Telecommunication Services) 890 35 Terra Industries, Inc. (Fertilizers & Agricultural Chemicals) (b) 1,170 42 Texas Instruments, Inc. (Semiconductors) 6,760 191 Thermo Fisher Scientific, Inc. (Life Sciences Tools & Services) (b) 2,440 139 Tidewater, Inc. (Oil & Gas Equipment & Services) 1,460 80 Time Warner, Inc. (Movies & Entertainment) 16,040 225 Toro Co. (The) (Construction & Farm Machinery & Heavy Trucks) 1,410 58 Transocean, Inc. (Oil & Gas Drilling) (b) 1,720 233 Travelers Cos., Inc. (The) (Property & Casualty Insurance) 5,840 279 Tyco Electronics Ltd. (Electronic Manufacturing Services) 1,630 56
See Notes to Financial Statements 45 PHOENIX WORLDWIDE STRATEGIES FUND
VALUE SHARES (000) ------- --------- UNITED STATES--(CONTINUED) Tyco International Ltd. (Industrial Conglomerates) 5,862 $ 258 United Technologies Corp. (Aerospace & Defense) 6,490 447 UnitedHealth Group, Inc. (Managed Health Care) 3,380 116 Universal Corp. (Tobacco) 2,360 155 Unum Group (Life & Health Insurance) 1,010 22 Valero Energy Corp. (Oil & Gas Refining & Marketing) 2,520 124 Verizon Communications, Inc. (Integrated Telecommunication Services) 3,810 139 VF Corp. (Apparel, Accessories & Luxury Goods) 890 69 Viacom, Inc. Class B (Movies & Entertainment) (b) 7,220 286 W&T Offshore, Inc. (Oil & Gas Exploration & Production) 2,240 76 Wal-Mart Stores, Inc. (Hypermarkets & Super Centers) 3,240 171 Walt Disney Co. (The) (Movies & Entertainment) 10,940 343 Waste Management, Inc. (Environmental & Facilities Services) 2,790 94 WellPoint, Inc. (Managed Health Care) (b) 2,520 111 Wells Fargo & Co. (Diversified Banks) 11,720 341 Whirlpool Corp. (Household Appliances) 500 43 Windstream Corp. (Integrated Telecommunication Services) 12,360 148 Xerox Corp. (Office Electronics) 1,410 21 ------------------------------------------------------------ TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $26,794) 29,076 ------------------------------------------------------------ FOREIGN COMMON STOCKS(c)--70.0% ARGENTINA--0.0% Telecom Argentina S.A. Sponsored ADR (Integrated Telecommunication Services) (b) (d) 1,800 38 --------- AUSTRALIA--4.6% ASX Ltd. (Specialized Finance) (d) 5,981 204 Ausenco Ltd. (Construction & Engineering) 1,109 14 AXA Asia Pacific Holdings Ltd. (Life & Health Insurance) (d) 61,771 311 Caltex Australia Ltd. (Oil & Gas Refining & Marketing) 10,704 127 Flight Centre Ltd. (Education Services) 1,296 25 Incitec Pivot Ltd. (Fertilizers & Agricultural Chemicals) (d) 3,272 422 Leighton Holdings Ltd. (Construction & Engineering) (d) 11,593 454 Orica Ltd. (Diversified Chemicals) 15,561 414 Qantas Airways Ltd. (Airlines) 219,344 788
VALUE SHARES (000) ------- --------- AUSTRALIA--(CONTINUED) QBE Insurance Group Ltd. (Property & Casualty Insurance) (d) 17,900 $ 363 Rio Tinto Ltd. (Diversified Metals & Mining) (d) 8,068 903 Riversdale Mining Ltd. (Diversified Metals & Mining) (b) 6,082 46 Santos Ltd. (Oil & Gas Exploration & Production) 20,280 269 Sims Group Ltd. (Steel) (d) 6,164 167 Woodside Petroleum Ltd. (Oil & Gas Exploration & Production) 4,147 207 --------- 4,714 --------- AUSTRIA--0.2% Voestalpine AG (Steel) 2,894 201 --------- BELGIUM--2.0% Belgacom SA (Integrated Telecommunication Services) 4,000 177 Delhaize Group (Food Retail) 8,012 631 Dexia SA (Diversified Banks) (d) 41,946 1,195 --------- 2,003 --------- BERMUDA--0.0% Lancashire Holdings Ltd. (Multi-line Insurance) 2,728 15 --------- CANADA--0.5% Canadian Imperial Bank of Commerce (Diversified Banks) 235 15 CGI Group, Inc. Class A (IT Consulting & Other Services) (b) 4,400 47 Churchill Corp. (The) Class A (Construction & Engineering) (b) 3,100 61 Empire Co., Ltd. Class A (Food Retail) 600 23 Methanex Corp. (Commodity Chemicals) 1,100 29 Petro-Canada (Integrated Oil & Gas) 4,300 187 Rothmans, Inc. (Tobacco) 2,900 74 Sherritt International Corp. (Diversified Metals & Mining) 4,200 59 Taseko Mines Ltd. (Gold) (b) (d) 7,510 38 --------- 533 --------- CHINA--0.3% Kazakhmys plc (Diversified Metals & Mining) 8,386 266 --------- DENMARK--0.6% D/S Norden (Marine) 5,125 570 --------- FINLAND--1.0% Fortum Oyj (Electric Utilities) 8,000 326 Nokia Oyj (Communications Equipment) 21,400 677 Ramirent Oyj (Consumer Finance) 1,192 23 --------- 1,026 ---------
VALUE SHARES (000) ------- --------- FRANCE--8.7% Alstom (Heavy Electrical Equipment) 1,963 $ 426 BNP Paribas SA (Diversified Banks) (d) 11,350 1,145 Bouygues SA (Wireless Telecommunication Services) (d) 3,200 203 Cap Gemini SA (IT Consulting & Other Services) (d) 352 20 Compagnie Generale des Etablissements Michelin Class B (Tires & Rubber) 4,369 456 Credit Agricole SA (Diversified Banks) (d) 7,388 229 France Telecom SA (Integrated Telecommunication Services) 45,944 1,545 LVMH Moet Hennessy Louis Vuitton SA (Apparel, Accessories & Luxury Goods) 3,204 357 PPR (Department Stores) (d) 2,933 435 PSA Peugeot Citroen SA (Automobile Manufacturers) 15,130 1,173 Publicis Groupe (Advertising) 10,064 384 Rallye SA (Specialty Stores) 921 58 Recylex SA (Diversified Metals & Mining) (b) 2,228 54 Sanofi-Aventis SA (Pharmaceuticals) (d) 4,960 372 Suez SA (Multi-Utilities) 4,200 276 Technip SA (Oil & Gas Equipment & Services) (d) 3,611 281 Total SA (Integrated Oil & Gas) (d) 9,000 668 UBISOFT Entertainment (Home Entertainment Software) (b) 917 79 Vallourec SA (Industrial Machinery) 1,100 267 Vivendi Universal SA (Movies & Entertainment) 10,677 417 --------- 8,845 --------- GERMANY--7.6% Allianz AG Registered Shares (Multi-line Insurance) (d) 2,145 425 Arcandor AG (Department Stores) (b)(d) 8,200 164 Arques Industries AG (Health Care Facilities) 1,074 21 Bayer AG (Diversified Chemicals) (d) 4,500 361 Bechtle AG (IT Consulting & Other Services) 546 17 Beiersdorf AG (Personal Products) 2,136 180 Daimler AG (Automobile Manufacturers) (d) 4,657 398 Deutsche Bank AG Registered Shares (Diversified Capital Markets) 3,200 362 Deutsche Boerse AG (Specialized Finance) 1,045 168 Deutsche Lufthansa AG Registered Shares (Airlines) 41,132 1,112 Deutsche Telekom AG Registered Shares (Integrated Telecommunication Services) (d) 30,694 511
See Notes to Financial Statements 46 PHOENIX WORLDWIDE STRATEGIES FUND
VALUE SHARES (000) ------- --------- GERMANY--(CONTINUED) E.ON AG (Electric Utilities)(d) 7,986 $ 1,479 GEA Group AG (Industrial Machinery)(b) 6,832 230 MAN AG (Industrial Machinery)(d) 3,161 420 MTU Aero Engines Holding AG (Aerospace & Defense) 909 38 Norddeutsche Affinerie AG (Diversified Metals & Mining)(d) 1,413 56 Salzgitter AG (Steel) 4,873 848 Symrise AG (Fertilizers & Agricultural Chemicals)(b) 7,089 183 ThyssenKrupp AG (Steel) 13,752 787 --------- 7,760 --------- GREECE--0.4% Alpha Bank AE (Diversified Banks) 11,354 376 --------- HONG KONG--1.7% Bank of East Asia Ltd. (Diversified Banks) 43,000 215 Cheung Kong Holdings Ltd. (Real Estate Management & Development) 22,000 312 China Mobile Ltd. (Wireless Telecommunication Services) 20,000 298 Chun Wo Development Holdings Ltd. (Construction & Engineering) 44,000 6 Hang Lung Properties Ltd. (Real Estate Management & Development) 93,000 329 Midland Holdings Ltd. (Real Estate Management & Development) 62,000 61 Mirabell International Holdings Ltd. (Apparel Retail) 20,000 15 Sinolink Worldwide Holdings Ltd. (Real Estate Management & Development) 176,000 27 Television Broadcasts Ltd. (Broadcasting & Cable TV) 52,000 279 VTech Holdings Ltd. (Communications Equipment) 34,907 169 --------- 1,711 --------- ISRAEL--0.0% Partner Communications Co. Ltd. ADR (Wireless Telecommunication Services) (d) 400 9 --------- ITALY--2.4% Banca Popolare dell'Emilia Romagna Scrl (Regional Banks) 1,113 24 Enel S.p.A. (Electric Utilities) 76,808 815 ENI S.p.A. (Integrated Oil & Gas) 27,029 922 Fiat S.p.A. (Automobile Manufacturers) 14,716 340 Indesit Co. S.p.A. (Household Appliances) (d) 3,033 40
VALUE SHARES (000) ------- --------- ITALY--(CONTINUED) Istituto Finanziario Industriale S.p.A. (Multi-Sector Holdings) (b) 1,354 $ 37 UniCredito Italiano S.p.A. (Diversified Banks) 34,900 234 --------- 2,412 --------- JAPAN--14.3% Aichi Bank Ltd. (The) (Regional Banks) 200 15 Aisin Seiko Co. Ltd. (Auto Parts & Equipment) 19,469 727 Allied Telesis Holdings KK (Communications Equipment) (b) 23,500 21 Aucnet, Inc. (Education Services) 600 7 Bank of Nagoya Ltd. (The) (Regional Banks) 4,000 24 Bank of Yokohama Ltd. (The) (Regional Banks) 27,000 183 Canon Marketing Japan, Inc. (Distributors) 20 --(h) Chiba Bank Ltd. (The) (Regional Banks) 11,000 75 Create SD Co. Ltd. (Drug Retail) 1,600 37 Daihatsu Motor Co. Ltd. (Automobile Manufacturers) (d) 21,000 252 Dena Co. Ltd. (Internet Retail) 34 214 East Japan Railway Co. (Railroads) (d) 57 474 FamilyMart Co. Ltd. (Food Retail) 4,400 158 FANUC Ltd. (Industrial Machinery) 4,200 399 FUJIFILM Holdings Corp. (Electronic Equipment Manufacturers) 500 18 Geo Corp. (Computer & Electronics Retail) 35 29 Hitachi Construction Machinery Co. Ltd. (Construction & Farm Machinery & Heavy Trucks) 14,800 370 Hitachi Ltd. (Electronic Equipment Manufacturers) (d) 135,000 800 Imagineer Co. Ltd. (Electronic Equipment Manufacturers) 800 5 Inpex Holdings, Inc. (Oil & Gas Exploration & Production) 35 390 Isetan Co. Ltd. (Department Stores)(d) (f) 19,800 229 Iyo Bank Ltd. (The) (Regional Banks) 5,000 53 Juki Corp. (Household Appliances) 6,000 22 Kanto Auto Works Ltd. (Auto Parts & Equipment) 1,700 24 Kao Corp. (Household Products) 13,000 368 Keiyo Bank Ltd. (The) (Regional Banks) 5,000 32
VALUE SHARES (000) ------- --------- JAPAN--(CONTINUED) Kohnan Shoji Co. Ltd. (General Merchandise Stores) 2,500 $ 32 Kosaido Co. Ltd. (Commercial Printing) 9,300 59 Leopalace21 Corp. (Real Estate Management & Development) (d) 10,400 168 Makita Corp. (Household Appliances) 3,300 104 Marubeni Corp. (Trading Companies & Distributors) 147,000 1,071 Mikuni Corp. (Auto Parts & Equipment) 5,000 15 Mitsubishi Corp. (Trading Companies & Distributors) 13,100 396 Mitsubishi Electric Corp. (Heavy Electrical Equipment) 43,000 372 Mitsubishi UFJ Financial Group, Inc. (Diversified Banks) 29,000 250 Mitsui Fudosan Co. Ltd. (Real Estate Management & Development) 20,000 397 Mitsumi Electric Co. Ltd. (Computer Storage & Peripherals)(d) 8,800 278 Mizuho Trust & Banking Co. Ltd. (Diversified Banks) (d) 24,000 34 Murata Manufacturing Co. Ltd. (Electronic Equipment Manufacturers) (d) 6,500 323 Nintendo Co. Ltd. (Home Entertainment Software) 2,700 1,392 Nippon Electric Glass Co. Ltd. (Electronic Equipment Manufacturers) (d) 24,000 371 Nippon Oil Corp. (Oil & Gas Refining & Marketing) 49,000 306 Nippon Shinyaku Co. Ltd. (Pharmaceuticals) 2,000 21 Nomura Holdings, Inc. (Investment Banking & Brokerage) 14,000 209 Nomura Research Institute Ltd. (IT Consulting & Other Services) 15,000 392 Ogaki Kyoritsu Bank Ltd. (The) (Regional Banks) 3,000 16 Okinawa Electric Power Co. Inc. (The) (Electric Utilities) 300 12 Pioneer Corp. (Consumer Electronics) 20,800 207 Plenus Co. Ltd. (Restaurants) 2,200 28 Proto Corp. (Advertising) 500 12 Ricoh Leasing Co. Ltd. (Specialized Finance) 600 13 Riso Kagaku Corp. (Office Electronics) 1,400 17 Sanyo Electric Co. Ltd. (Consumer Electronics) (b) 63,000 133 Sekisui House Ltd. (Homebuilding)(d) 35,000 324 Shin-Etsu Chemical Co. Ltd. (Specialty Chemicals) 5,300 274
See Notes to Financial Statements 47 PHOENIX WORLDWIDE STRATEGIES FUND
VALUE SHARES (000) ------- ---------- JAPAN--(CONTINUED) Siix Corp. (Trading Companies & Distributors) 1,800 $ 13 Sinko Industries Ltd. (Building Products) 7,000 38 Sumitomo Mitsui Financial Group, Inc. (Diversified Banks) 92 605 Tabuchi Electric Co. Ltd. (Electrical Components & Equipment) 4,000 10 Taihei Kogyo Co. Ltd. (Construction & Engineering) 10,000 35 Takeda Pharmaceutical Co. Ltd. (Pharmaceuticals) (d) 8,600 430 Tokai Rika Co. Ltd. (Auto Parts & Equipment) 1,800 47 Tokyo Tekko Co. Ltd. (Steel) (d) 3,000 12 Toshiba Plant Systems & Services Corp. (Construction & Engineering) (d) 13,000 101 Toyo Kohan Co. Ltd. (Steel) (d) 3,000 16 Toyo Suisan Kaisha Ltd. (Packaged Foods & Meats) 1,000 15 Toyoda Gosei Co. Ltd. (Auto Parts & Equipment) 1,495 56 Toyota Auto Body Co. Ltd. (Auto Parts & Equipment) (d) 2,400 48 Toyota Motor Corp. (Automobile Manufacturers) 9,100 454 TS Tech Co. Ltd. (Tires & Rubber) 2,600 48 Tsudakoma Corp (Industrial Machinery) (d) 5,000 12 Yamaha Motor Co. Ltd. (Motorcycle Manufacturers) 12,900 237 Yamato Kogyo Co. Ltd. (Steel) 5,500 222 --------- 14,551 --------- LUXEMBOURG--0.5% ArcelorMittal (Steel) 5,879 482 --------- MEXICO--0.5% Axtel S.A.B. de C.V. (Integrated Telecommunication Services) (b) 14,200 31 Grupo Mexico S.A.B. de C.V. Series B (Diversified Metals & Mining) 13,200 87 Mexichem S.A.B. de C.V. (Fertilizers & Agricultural Chemicals) 4,669 24 Telefonos de Mexico S.A.B. de C.V. Series L (Integrated Telecommunication Services 192,200 363 --------- 505 --------- NETHERLANDS--4.5% ASML Holding N.V. (Semiconductor Equipment) (b) 14,755 363 Draka Holding N.V. (Electrical Components & Equipment) 3,751 121 Heineken N.V. (Brewers) 9,544 554 Hunter Douglas N.V. (Home Furnishings) 2,485 168
VALUE SHARES (000) ------- ---------- NETHERLANDS--(CONTINUED) ING Groep N.V. (Other Diversified Financial Services) 59,875 $ 2,242 OCE N.V. (Office Electronics) (d) 4,164 71 Unilever N.V. (Packaged Foods & Meats) (d) 21,849 734 Wolters Kluwer N.V. (Publishing) 13,471 357 --------- 4,610 --------- NEW ZEALAND--0.1% Fletcher Building Ltd. (Construction Materials) (d) 14,766 97 --------- NORWAY--0.1% Cermaq ASA (Agricultural Products) (d) 1,500 19 Petroleum Geo-Services ASA (Oil & Gas Equipment & Services) 2,750 68 --------- 87 --------- RUSSIA--1.1% LUKOIL Sponsored ADR (Integrated Oil & Gas) 8,995 769 Novolipetsk Steel GDR Registered Shares (Steel) 3,310 136 VTB Bank OJSC Sponsored GDR (Regional Banks) (b) 23,595 169 --------- 1,074 --------- SINGAPORE--0.9% CapitaLand Ltd. (Real Estate Management & Development) 63,000 291 Golden Agri-Resources Ltd. (Agricultural Products) 138,000 100 Jardine Cycle & Carriage Ltd. (Distributors) 30,000 426 L.C. Development Ltd. (Real Estate Management & Development) 29,000 5 Rotary Engineering Ltd. (Construction & Engineering) 44,000 28 Seagate Technology (Computer Storage & Peripherals) 3,160 66 Swiber Holdings Ltd. (Oil & Gas Equipment & Services) (b) 17,000 31 --------- 947 --------- SOUTH KOREA--0.3% KT Corp. (Integrated Telecommunication Services) 5,800 275 --------- SPAIN--1.0% Banco Santander SA (Diversified Banks) 15,548 310 Telefonica SA (Integrated Telecommunication Services) 23,700 681 --------- 991 --------- SWEDEN--0.6% Autoliv, Inc. (Auto Parts & Equipment) 890 45
VALUE SHARES (000) ------- ---------- SWEDEN--(CONTINUED) JM AB (Construction & Engineering) 3,200 $ 75 Skanska AB Class B (Construction & Engineering) 14,175 284 Telefonaktiebolaget LM Ericsson Class B (Communications Equipment) (d) 105,717 207 --------- 611 --------- SWITZERLAND--3.5% Credit Suisse Group Registered Shares (Diversified Capital Markets) 10,217 520 Forbo Holding AG Registered Shares (Home Furnishings) (b) 30 16 Galenica AG Registered Shares (Health Care Distributors) 474 157 Holcim Ltd. Registered Shares (Construction Materials) 3,300 347 Meyer Burger Technology AG (Industrial Machinery) (b) 149 46 Roche Holding AG Registered Shares (Pharmaceuticals) 4,284 806 Swatch Group AG (The) (Apparel, Accessories & Luxury Goods) 350 93 Zurich Financial Services AG Registered Shares (Multi-line Insurance) 4,867 1,533 --------- 3,518 --------- TAIWAN--0.3% Chunghwa Telecom Co., Ltd. (Integrated Telecommunication Services) 1,675 4 Taiwan Semiconductor Manufacturing Co. Ltd. Sponsored ADR (Semiconductors) 30,259 311 --------- 315 --------- THAILAND--0.0% IRPC PCL (Fertilizers & Agricultural Chemicals) 196,600 36 --------- TURKEY--0.1% Sekerbank T.A.S. (Regional Banks) (b) 6,629 13 Tupras-Turkiye Petro Rafinerileri A.S. (Oil & Gas Refining & Marketing) 6,335 140 --------- 153 --------- UNITED KINGDOM--11.8% 3i Group plc (Asset Management & Custody Banks) 27,971 461 Antofagasta plc (Diversified Metals & Mining) 93,261 1,297 AstraZeneca plc (Pharmaceuticals) 27,426 1,025 Aveva Group plc (Application Software) 1,271 29
See Notes to Financial Statements 48 PHOENIX WORLDWIDE STRATEGIES FUND
VALUE SHARES (000) --------- ---------- UNITED KINGDOM--(CONTINUED) Aviva plc (Multi-line Insurance) 24,270 $ 297 BAE Systems plc (Aerospace & Defense) 29,710 286 Barclays plc (Diversified Banks) 36,550 329 BP plc (Integrated Oil & Gas) 33,345 339 British American Tobacco plc (Tobacco) 11,675 438 British Sky Broadcasting Group plc (Broadcasting & Cable TV) 38,700 427 BT Group plc (Integrated Telecommunication Services) 119,127 514 Character Group plc (The) (Leisure Products) 2,889 6 CSR plc (Semiconductors) (b)(d) 751 5 easyJet plc (Airlines) (b) 19,400 143 GlaxoSmithKline plc (Pharmaceuticals) 29,400 622 IG Group Holdings plc (Investment Banking & Brokerage) 16,716 109 Johnson Matthey plc (Specialty Chemicals) 6,326 252 Keller Group plc (Construction & Engineering) 759 10 Legal & General Group plc (Life & Health Insurance) 172,300 432 Micro Focus International plc (Application Software) 3,289 12 National Grid plc (Multi-Utilities) 28,212 387 NETeller plc (Education Services) (b) 13,617 15 Next plc (Department Stores) 912 21 Petrofac Ltd. (Oil & Gas Equipment & Services) 7,392 82 Reckitt Benckiser Group plc (Household Products) 715 40 Rio Tinto plc (Diversified Metals & Mining) 4,746 493 Rolls-Royce Group plc (Aerospace & Defense) (b) 42,477 340 Rolls-Royce Group plc Class B (Aerospace & Defense) 3,805,939 8 Royal Bank of Scotland Group plc (Diversified Banks) 19,584 131
VALUE SHARES (000) --------- ---------- UNITED KINGDOM--(CONTINUED) Royal Dutch Shell plc Class A (Integrated Oil & Gas)(d) 55,892 $ 1,929 Royal Dutch Shell plc Class A (Integrated Oil & Gas) (d)(g) 11,460 395 Smiths Group plc (Industrial Conglomerates) 13,980 261 Tanfield Group plc (Construction & Farm Machinery & Heavy Trucks) (b) 11,893 23 Thomas Cook Group plc (Hotels, Resorts & Cruise Lines) 32,906 189 THUS Group plc (Alternative Carriers) (b) 11,186 26 Vodafone Group plc (Wireless Telecommunication Services) 167,925 503 Wolseley plc (Trading Companies & Distributors 9,874 104 ---------- 11,980 ---------- UNITED STATES--0.4% Accenture Ltd. Class A (IT Consulting & Other Services) 4,890 172 ACE Ltd. (Property & Casualty Insurance) 1,190 65 Herbalife Ltd. (Personal Products) 1,720 82 Ingersoll-Rand Co. Ltd. Class A (Industrial Machinery) 720 32 Nova Chemicals Corp. (Commodity Chemicals) 900 22 XL Capital Ltd. Class A (Property & Casualty Insurance) 1,640 48 ---------- 421 --------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $66,370) 71,132 --------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--98.6% (IDENTIFIED COST $93,164) 100,208 ---------------------------------------------------------------
VALUE SHARES (000) --------- ---------- SHORT-TERM INVESTMENTS--10.3% MONEY MARKET MUTUAL FUNDS(e)--9.7% State Street Navigator Prime Plus (3.182% seven-day effective yield) 9,824,252 $ 9,824
PAR VALUE (000) --------- FEDERAL AGENCY SECURITIES(i)--0.2% FHLB 2.02% due 4/2/08 $ 190 190 COMMERCIAL PAPER(i)--0.4% Cintas Corp. 2.850% due 4/1/08 490 490 --------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $ 10,504) 10,504 --------------------------------------------------------------- TOTAL INVESTMENTS--108.9% (IDENTIFIED COST $103,668) 110,712(a) Other assets and liabilities, net--(8.9)% (9,050) --------- NET ASSETS--100.0% $ 101,662 =========
FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): Net unrealized appreciation of investment securities is comprised of gross appreciation of $14,891 and gross depreciation of $8,130 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $103,951. (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, or parenthetically, 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 March 31, 2008, this security amounted to a value of $229 (reported in 000s) or 0.2% of net assets. (g) Shares traded on Amsterdam Exchange. (h) Amount is less than $500. (i) The rate shown is the discount rate. See Notes to Financial Statements 49 PHOENIX OPPORTUNITIES TRUST STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 2008 (UNAUDITED) (Reported in thousands except per share amounts)
ALTERNATIVE FUNDS -------------------------------------------------------- GLOBAL INTERNATIONAL REAL MARKET NEUTRAL UTILITIES FUND ESTATE SECURITIES FUND FUND -------------- ---------------------- -------------- ASSETS Investment in securities at value + ......................... $ 61,150 $ 11,168 $ 93,488 Investment in affiliated funds at value (T) ................. -- -- -- Investment in non-affiliated funds at value (S) ............. -- -- -- Foreign currency at value * ................................. 54 100 -- Cash ........................................................ 4 214 3 Deposits with broker for securities sold short .............. -- -- 82,040 Receivables Investment securities sold .................................. -- 63 4,371 Fund shares sold ......................................... 416 -- 804 Receivable from adviser .................................. -- 2 -- Dividends ................................................ 80 50 97 Interest ................................................. -- -- 66 Tax reclaims ............................................. 9 1 -- Prepaid expenses ............................................ 21 34 17 Other assets ................................................ 1 -- 9 --------- --------- --------- Total assets ........................................... 61,735 11,632 180,895 --------- --------- --------- LIABILITIES Cash overdraft .............................................. -- -- -- Securities sold short at value (D) .......................... -- -- 82,871 Payables Fund shares repurchased ............................ 17 6 42 Investment securities purchased .......................... 13 52 3,092 Investment advisory fee .................................. 28 -- 106 Dividends on short sales ................................. -- -- 179 Administration fee ....................................... 4 1 5 Transfer agent fee ....................................... 3 3 12 Trustees' fee ............................................ 1 --(1) 1 Distribution and service fees ............................ 14 3 25 Dividend distributions ................................... -- -- -- Professional fee ......................................... 22 9 26 Trustee deferred compensation plan ....................... 1 -- 9 Other accrued expenses ................................... 5 8 1 --------- --------- --------- Total liabilities ...................................... 108 82 86,369 --------- --------- --------- NET ASSETS ................................................... $ 61,627 $ 11,550 $ 94,526 ========= ========= ========= NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest ............ $ 58,537 $ 13,118 $ 121,271 Undistributed net investment income (loss) .................. (11) (72) 40 Accumulated net realized gain (loss) ........................ 1,673 (95) (26,334) Net unrealized appreciation (depreciation) on investments ... 1,428 (1,401) (1,639) Net unrealized appreciation (depreciation) on securities sold short ................................................ -- -- 1,188 --------- --------- --------- NET ASSETS ................................................... $ 61,627 $ 11,550 $ 94,526 ========= ========= ========= CLASS A: Net asset value per share (Net assets/shares outstanding) .............................................. $ 12.73 $ 8.67 $ 10.25 --------- --------- --------- Maximum offering price per share (F) ..................... $ 13.51 $ 9.20 $ 10.88 --------- --------- --------- Shares of beneficial interest outstanding, unlimited ..... 4,658 1,297 8,445 --------- --------- --------- Net Assets ............................................... $ 59,304 $ 11,242 $ 86,600 --------- --------- --------- CLASS B: Net asset value (Net assets/shares outstanding) and offering price per share .................................. -- -- $ 9.93 --------- --------- --------- Shares of beneficial interest outstanding, unlimited authorization ......................................... -- -- 204 --------- --------- --------- Net Assets ............................................... -- -- $ 2,025 --------- --------- --------- CLASS C: Net asset value (Net assets/shares outstanding) and offering price per share .................................. $ 12.70 $ 8.65 $ 9.89 --------- --------- --------- Shares of beneficial interest outstanding, unlimited authorization ......................................... 183 25 597 --------- --------- --------- Net Assets ............................................... $ 2,323 $ 220 $ 5,901 --------- --------- --------- CLASS I: Net asset value (Net assets/shares outstanding) and offering price per share .................................. -- $ 8.67 -- --------- --------- --------- Shares of beneficial interest outstanding, unlimited authorization ......................................... -- 10 -- --------- --------- --------- Net Assets ............................................... -- $ 88 -- --------- --------- --------- + Investment in securities at cost ......................... $ 59,732 $ 12,569 $ 95,129 (T)Investment in affiliated funds at cost ................... -- -- -- (S)Investment in non-affiliated funds at cost ............... -- -- -- * Foreign currency at cost ................................. $ 52 $ 100 -- (D)Proceeds from securities sold short ...................... -- -- $ 84,055 (F)Maximum offering price per share represents NAV/(1-4.75%) for Fixed Income Funds, and NAV/(1-5.75%) for Alternative Funds and Fund of Funds. (1)Amount is less than $500.
See Notes to Financial Statements 50
FUNDS OF FUNDS FIXED INCOME FUNDS ---------------------------------------------------------------------- -------------------------- DIVERSIFIER WEALTH ACCUMULATOR WEALTH BUILDER WEALTH GUARDIAN CA TAX-EXEMPT PHOLIO(SM) PHOLIO(SM) PHOLIO(SM) PHOLIO(SM) BOND FUND BOND FUND -------------- ------------------ -------------- --------------- ---------- ------------- $ 1,185 $ -- $ 265 $ -- $ 75,822 $ 67,298 133,906 12,344 112,919 54,115 -- -- 107,251 -- -- -- -- -- -- -- -- -- -- -- 162 37 3 222 99 9 -- -- -- -- -- -- -- -- -- 229 1,689 -- 3,006 9 104 43 17 6 24 8 21 11 -- -- 158 -- 25 21 -- -- -- -- -- -- 631 933 -- -- -- -- -- -- 36 20 22 21 27 19 --(1) --(1) 8 4 6 5 --------- --------- --------- --------- --------- --------- 245,728 12,418 113,367 54,666 78,291 68,270 --------- --------- --------- --------- --------- --------- -- -- -- -- -- -- -- -- -- -- -- -- 244 6 162 231 4,310 1 2,727 -- 25 24 1,578 -- -- -- -- -- 45 16 -- -- -- -- -- -- 15 1 8 4 6 5 40 3 25 8 7 4 2 --(1) 1 1 1 1 75 3 40 17 12 8 -- -- -- -- -- 110 25 16 20 18 60 22 --(1) --(1) 8 4 6 5 11 2 15 7 58 4 --------- --------- --------- --------- --------- --------- 3,139 31 304 314 6,083 176 --------- --------- --------- --------- --------- --------- $ 242,589 $ 12,387 $ 113,063 $ 54,352 $ 72,208 $ 68,094 ========= ========= ========= ========= ========= ========= $ 238,744 $ 12,897 $ 108,622 $ 53,666 $ 73,926 $ 66,808 520 (141) (899) (228) (52) 60 (1,987) 175 1,755 284 (1,256) (143) 5,312 (544) 3,585 630 (410) 1,369 -- -- -- -- -- -- --------- --------- --------- --------- --------- --------- $ 242,589 $ 12,387 $ 113,063 $ 54,352 $ 72,208 $ 68,094 ========= ========= ========= ========= ========= ========= $ 11.60 $ 10.81 $ 11.26 $ 10.88 $ 10.27 $ 11.95 --------- --------- --------- --------- --------- --------- $ 12.31 $ 11.47 $ 11.95 $ 11.54 $ 10.78 $ 12.55 --------- --------- --------- --------- --------- --------- 13,452 778 4,450 2,496 2,730 3,161 --------- --------- --------- --------- --------- --------- $ 156,091 $ 8,412 $ 50,110 $ 27,173 $ 28,037 $ 37,767 --------- --------- --------- --------- --------- --------- -- -- -- -- $ 10.07 -- --------- --------- --------- --------- --------- --------- -- -- -- -- 446 -- --------- --------- --------- --------- --------- --------- -- -- -- -- $ 4,485 -- --------- --------- --------- --------- --------- --------- $ 11.49 $ 10.71 $ 11.18 $ 10.85 $ 10.09 -- --------- --------- --------- --------- --------- --------- 7,529 371 5,629 2,505 265 -- --------- --------- --------- --------- --------- --------- $ 86,498 $ 3,975 $ 62,953 $ 27,179 $ 2,673 -- --------- --------- --------- --------- --------- --------- -- -- -- -- $ 10.38 $ 11.94 --------- --------- --------- --------- --------- --------- -- -- -- -- 3,567 2,540 --------- --------- --------- --------- --------- --------- -- -- -- -- $ 37,013 $ 30,327 --------- --------- --------- --------- --------- --------- $ 1,185 -- $ 265 -- $ 76,232 $ 65,929 $ 138,724 $ 12,888 -- $ 53,485 -- -- $ 97,121 -- $ 109,334 -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
See Notes to Financial Statements 51 PHOENIX OPPORTUNITIES TRUST STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) MARCH 31, 2008 (UNAUDITED) (Reported in thousands except per share amounts)
FIXED INCOME FUNDS ----------------------- CORE HIGH BOND FUND YIELD FUND --------- ---------- ASSETS Investment in securities at value + @ ................................................. $ 64,783 $ 108,931 Foreign currency at value * ............................................................ -- -- Cash ................................................................................... 22 84 Receivables Investment securities sold ................................................. 1 1,482 Fund shares sold .............................................................. 1 14 Dividends ..................................................................... -- -- Interest ...................................................................... 471 2,547 Tax reclaims .................................................................. -- -- Unrealized appreciation on forward currency contracts .................................. -- -- Prepaid expenses ....................................................................... 24 25 Other assets ........................................................................... 5 9 --------- --------- Total assets ................................................................ 65,307 113,092 --------- --------- LIABILITIES Cash overdraft ......................................................................... -- -- Securities sold short at value ......................................................... -- -- Payables Fund shares repurchased ....................................................... 46 134 Investment securities purchased ............................................... 810 1,865 Upon return of securities loaned .............................................. -- -- Investment advisory fee ....................................................... 12 61 Administration fee ............................................................ 5 8 Transfer agent fee ............................................................ 17 35 Trustees' fee ................................................................. 1 1 Distribution and service fees ................................................. 16 26 Dividend distributions ........................................................ -- -- Foreign capital gain taxes .................................................... -- -- Professional fee .............................................................. 21 25 Trustee deferred compensation plan ............................................ 5 9 Unrealized depreciation on forward currency contracts .................................. -- -- --------- --------- Other accrued expenses ................................................................. 11 27 --------- --------- Total liabilities ........................................................... 944 2,191 --------- --------- NET ASSETS ............................................................................. $ 64,363 $ 110,901 ========= ========= NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest ....................................... $ 84,843 $ 314,400 Undistributed net investment income (loss) ............................................. (20) (71) Accumulated net realized gain (loss) ................................................... (19,329) (191,177) Net unrealized appreciation (depreciation) on investments .............................. (1,131) (12,251) --------- --------- NET ASSETS ............................................................................. $ 64,363 $ 110,901 ========= ========= CLASS A: Net asset value per share (Net assets/shares outstanding) ..................... $ 8.31 $ 4.46 --------- --------- Maximum offering price per share (F) .......................................... $ 8.72 $ 4.68 --------- --------- Shares of beneficial interest outstanding, unlimited authorization ............ 7,371 24,121 --------- --------- Net Assets .................................................................... $ 61,287 $ 107,506 --------- --------- CLASS B: Net asset value (Net assets/shares outstanding) and offering price per share... $ 8.25 $ 4.39 --------- --------- Shares of beneficial interest outstanding, unlimited authorization ............ 184 399 --------- --------- Net Assets .................................................................... $ 1,514 $ 1,752 --------- --------- CLASS C: Net asset value (Net assets/shares outstanding) and offering price per share... $ 8.28 $ 4.41 --------- --------- Shares of beneficial interest outstanding, unlimited authorization ............ 189 372 --------- --------- Net Assets .................................................................... $ 1,562 $ 1,643 --------- --------- CLASS I: Net asset value (Net assets/shares outstanding) and offering price per share... -- -- --------- --------- Shares of beneficial interest outstanding, unlimited authorization ............ -- -- --------- --------- Net Assets .................................................................... -- -- --------- --------- + Investment in securities at cost $ 65,914 $ 121,182 * Foreign currency at cost -- -- @ Market value of securities on loan -- -- (F) Maximum offering price per share represents NAV/(1-4.75%) for Fixed Income Funds, and NAV/(1-5.75%) for International Funds. (1) Amount is less than $500.
See Notes to Financial Statements 52
FIXED INCOME FUNDS INTERNATIONAL FUNDS -------------------------------------------------------- --------------------------------- MULTI-SECTOR FIXED SENIOR FLOATING INTERNATIONAL WORLDWIDE MONEY MARKET FUND INCOME FUND RATE FUND STRATEGIES FUND STRATEGIES FUND ----------------- ------------------ --------------- --------------- --------------- $ 99,725 $134,683 $ 16,954 $ 83,838 $110,712 -- -- -- 881 511 354 1,171 37 9 -- 27 124 617 -- 476 10 104 -- 9 19 -- 5 -- 349 467 260 2,675 113 -- -- -- -- -- 27 49 -- 115 -- -- -- 17 23 41 23 30 6 9 -- 7 7 -------- -------- -------- -------- -------- 100,399 138,909 17,762 85,143 112,271 -------- -------- -------- -------- -------- -- -- -- -- 349 -- -- -- -- -- 104 315 -- 37 132 -- 1,757 2,732 126 112 -- -- -- -- 9,824 34 64 -- 60 73 3 10 1 6 7 25 27 7 20 26 1 2 --(1) 1 1 -- 50 3 22 25 3 270 -- -- -- -- -- -- 1 -- 17 25 4 21 24 6 9 -- 7 7 -- -- -- -- 1 20 31 4 25 28 -------- -------- -------- -------- -------- 213 2,560 2,751 326 10,609 -------- -------- -------- -------- -------- $100,186 $136,349 $ 15,011 $ 84,817 $101,662 ======== ======== ======== ======== ======== $100,168 $173,948 $ 15,132 $ 78,560 $ 93,881 13 1,041 (3) 53 200 5 (29,915) (32) (100) 539 -- (8,725) (86) 6,304 7,042 -------- -------- -------- -------- -------- $100,186 $136,349 $ 15,011 $ 84,817 $101,662 ======== ======== ======== ======== ======== $ 1.00 $ 10.33 $ 9.92 $ 13.53 $ 9.86 -------- -------- -------- -------- -------- $ 1.00 $ 10.85 $ 10.53 $ 14.36 $ 10.46 -------- -------- -------- -------- -------- 100,180 10,032 1,473 5,787 9,799 -------- -------- -------- -------- -------- $100,186 $103,587 $ 14,611 $ 78,280 $ 96,663 -------- -------- -------- -------- -------- -- $ 10.31 -- $ 12.37 $ 8.88 -------- -------- -------- -------- -------- -- 1,318 -- 360 387 -------- -------- -------- -------- -------- -- $ 13,585 -- $ 4,454 $ 3,437 -------- -------- -------- -------- -------- -- $ 10.37 $ 9.92 $ 12.33 $ 8.85 -------- -------- -------- -------- -------- -- 1,849 20 169 176 -------- -------- -------- -------- -------- -- $ 19,177 $ 200 $ 2,083 $ 1,562 -------- -------- -------- -------- -------- -- -- $ 9.92 -- -- -------- -------- -------- -------- -------- -- -- 20 -- -- -------- -------- -------- -------- -------- -- -- $ 200 -- -- -------- -------- -------- -------- -------- $ 99,725 $143,535 $ 17,040 $ 77,540 $103,668 -- -- -- $ 877 $ 524 -- -- -- -- $ 9,388
See Notes to Financial Statements 53 PHOENIX OPPORTUNITIES TRUST STATEMENT OF OPERATIONS (Reported in thousands)
ALTERNATIVE FUNDS ------------------------------------------------------------------- GLOBAL UTILITIES INTERNATIONAL MARKET FUND REAL ESTATE SECURITIES FUND NEUTRAL FUND ----------------- --------------------------- ----------------- 10/1/07 - 3/31/08 10/1/07 - 3/31/08 10/1/07 - 3/31/08 (Unaudited) (Unaudited) (Unaudited) ----------------- --------------------------- ----------------- INVESTMENT INCOME Dividends ................................................ $ 905 $ 203 $ 445 Income distributions received from affiliated funds ...... -- -- -- Income distributions received from non-affiliated funds .. -- -- -- Interest ................................................. 22 9 935 Security lending ......................................... -- -- -- Foreign taxes withheld ................................... (26) (27) -- -------- -------- -------- Total investment income ................................ 901 185 1,380 -------- -------- -------- EXPENSES Investment advisory fee .................................. 207 52 550 Service fees, Class A .................................... 77 13 81 Distribution and service fees, Class B ................... -- -- 11 Distribution and service fees, Class C ................... 11 1 31 Administration fee ....................................... 27 4 29 Transfer agent ........................................... 14 10 42 Custodian ................................................ 11 12 15 Printing ................................................. 6 3 17 Professional ............................................. 17 9 36 Registration ............................................. 10 22 18 Trustees ................................................. 2 --(1) 3 Miscellaneous ............................................ 4 3 6 -------- -------- -------- Total expenses ......................................... 386 129 839 Dividends on short sales ................................. -- -- 611 Less expenses reimbursed by investment adviser ........... (11) (51) (125) Custodian fees paid indirectly ........................... --(1) --(1) (1) -------- -------- -------- Net expenses ........................................... 375 78 1,324 -------- -------- -------- NET INVESTMENT INCOME (LOSS) ............................. 526 107 56 ======== ======== ======== REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments .................. 1,713 (99) (7,214) 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 ........ -- -- 12,252 Net realized gain (loss) on foreign currency transactions ........................................... 9 4 (7) Capital gain distributions received from affiliated funds ....................................... -- -- -- Net change in unrealized appreciation (depreciation) on investments ......................................... (4,208) (1,401) (4,026) Net change in unrealized appreciation(depreciation) on investments from non-affiliated funds ............... -- -- -- Net change in unrealized appreciation (depreciation) on investments from affiliated funds ................... -- -- -- Net change in unrealized appreciation (depreciation) on securities sold short ............................... -- -- (1,806) Net change in unrealized appreciation (depreciation) on foreign currency translations ....................... 9 --(1) 6 -------- -------- -------- NET GAIN (LOSS) ON INVESTMENTS ........................... (2,477) (1,496) (795) -------- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................................................ (1,951) (1,389) (739) ======== ======== ========
(1) Amount is less than $500. See Notes to Financial Statements 54
FUNDS OF FUNDS --------------------------------------------------------------------------------------------- DIVERSIFIER WEALTH WEALTH WEALTH PHOLIO(SM) ACCUMULATOR PHOLIO(SM) BUILDER PHOLIO(SM) GUARDIAN PHOLIO(SM) ----------------- ----------------------- ------------------- -------------------- 10/1/07 - 3/31/08 10/1/07 - 3/31/08 10/1/07 - 3/31/08 10/1/07 - 3/31/08 (Unaudited) (Unaudited) (Unaudited) (Unaudited) ----------------- ----------------------- ------------------- -------------------- $ -- $ -- $ -- $ -- --------- -------- --------- -------- 1,564 56 1,129 756 21 1 6 6 -- -- -- -- -- -- -- -- --------- -------- --------- -------- 1,585 57 1,135 762 --------- -------- --------- -------- 102 7 62 29 116 -- -- -- -- -- -- -- 287 16 263 112 85 6 53 25 142 12 90 30 6 2 8 6 17 1 14 6 21 10 15 12 23 18 23 18 8 1 6 2 10 1 7 4 --------- -------- --------- -------- 817 74 541 244 -- -- -- -- (196) (38) (145) (66) (1) --(1) -- --(1) --------- -------- --------- -------- 620 36 396 178 --------- -------- --------- -------- 965 21 739 584 ========= ======== ========= ======== -- -- -- -- (3,103) (62) 487 78 949 -- -- -- -- -- -- -- -- -- -- -- 2,722 360 2,871 929 -- -- -- -- -- -- -- -- (4,196) (2,079) (16,742) (5,980) -- -- -- -- -- -- -- -- --------- -------- --------- -------- (3,628) (1,781) (13,384) (4,973) --------- -------- --------- -------- (2,663) (1,760) (12,645) (4,389) ========= ======== ========= ========
See Notes to Financial Statements 55 PHOENIX OPPORTUNITIES TRUST STATEMENT OF OPERATIONS (CONTINUED) (Reported in thousands)
FIXED INCOME FUNDS ------------------------------------------------------------------------------ CA TAX-EXEMPT CORE BOND HIGH YIELD BOND FUND BOND FUND FUND FUND ------------------ ------------------- ----------------- ------------------ 10/1/07 - 3/31/08 10/1/07 - 3/31/08 10/1/07 - 3/31/08 10/1/07 - 3/31/08 (Unaudited) (Unaudited) (Unaudited) (Unaudited) ------------------ ------------------- ----------------- ------------------ INVESTMENT INCOME Dividends ..................................... $ 9 $ -- $ -- $ -- Interest ...................................... 2,250 1,575 1,779 5,089 Security lending .............................. -- -- 4 76 Foreign taxes withheld ........................ -- -- -- -- ------------------ ------------------- ----------------- ------------------ Total investment income ..................... 2,259 1,575 1,783 5,165 ------------------ ------------------- ----------------- ------------------ EXPENSES Investment advisory fee ....................... 210 153 147 389 Service fees, Class A ......................... 36 48 78 145 Distribution and service fees, Class B ........ 22 -- 8 10 Distribution and service fees, Class C ........ 11 -- 7 9 Administration fee ............................ 36 28 27 50 Transfer agent ................................ 27 16 66 136 Custodian ..................................... 12 7 11 11 Printing ...................................... 52 9 9 17 Professional .................................. 57 17 14 18 Registration .................................. 29 13 13 14 Trustees ...................................... 4 2 3 5 Miscellaneous ................................. 5 4 4 8 ------------------ ------------------- ----------------- ------------------ Total expenses .............................. 501 297 387 812 Less expenses reimbursed by investment adviser. -- (46) (49) -- Custodian fees paid indirectly ................ (1) --(1) --(1) (1) ------------------ ------------------- ----------------- ------------------ Net expenses ................................ 500 251 338 811 ------------------ ------------------- ----------------- ------------------ NET INVESTMENT INCOME (LOSS) .................. 1,759 1,324 1,445 4,354 ================== =================== ================= ================== NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments ....... 694 5 436 (4,560) Net realized gain (loss) on foreign currency transactions ................................ -- -- -- -- Net change in unrealized appreciation (depreciation) on investments ............... (181) (863) (454) (6,257) Net change in unrealized appreciation (depreciation) on foreign currency translations ................................ -- -- -- -- ------------------ ------------------- ----------------- ------------------ NET GAIN (LOSS) ON INVESTMENTS ................ 513 (858) (18) (10,817) ------------------ ------------------- ----------------- ------------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................. 2,272 466 1,427 (6,463) ================== =================== ================= ==================
(1) Amount is less than $500. (2) Inception date of the Fund. See Notes to Financial Statements 56
FIXED INCOME FUNDS INTERNATIONAL FUNDS ---------------------------------------------------------------------- --------------------------------------- MONEY MARKET MULTI-SECTOR FIXED SENIOR FLOATING INTERNATIONAL WORLDWIDE FUND INCOME FUND RATE FUND STRATEGIES FUND STRATEGIES FUND ----------------- ------------------ ---------------------- ------------------ ----------------- 10/1/07 - 3/31/08 10/1/07 - 3/31/08 1/31/08 (2)- 3/31/08 10/1/07 - 3/31/08 10/1/07 - 3/31/08 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) ----------------- ------------------ ---------------------- ------------------ ----------------- $ -- $ 55 $ -- $ 897 $ 1,114 2,132 5,387 152 3 12 -- -- -- -- 65 -- -- -- (52) (51) ----------------- ------------------ ---------------------- ------------------ ---------------- 2,132 5,442 152 848 1,140 ----------------- ------------------ ---------------------- ------------------ ---------------- 193 395 14 402 478 -- 137 6 108 133 -- 70 -- 27 21 -- 100 --(1) 12 9 17 60 2 39 47 108 90 7 84 109 10 21 2 54 65 13 20 2 9 11 14 18 4 14 22 11 13 4 22 23 4 6 --(1) 4 5 6 11 2 6 7 ----------------- ------------------ ---------------------- ------------------ ---------------- 376 941 43 781 930 -- -- (14) -- -- --(1) (3) --(1) -- --(1) ----------------- ------------------ ---------------------- ------------------ ---------------- 376 938 29 781 930 ----------------- ------------------ ---------------------- ------------------ ---------------- 1,756 4,504 123 67 210 ================= ================== ====================== =================== ================ 10 743 (32) 1,062 1,200 -- 91 -- 94 40 -- (9,059) (86) (15,772) (17,071) -- 152 -- (22) (20) ----------------- ------------------ ---------------------- ------------------ ---------------- 10 (8,073) (118) (14,638) (15,851) ----------------- ------------------ ---------------------- ------------------ ---------------- 1,766 (3,569) 5 (14,571) (15,641) ================= ================== ====================== =================== ================
See Notes to Financial Statements 57 PHOENIX OPPORTUNITIES TRUST STATEMENT OF CHANGES IN NET ASSETS (Reported in thousands)
ALTERNATIVE FUNDS --------------------------------------------------- GLOBAL UTILITIES FUND --------------------------------------------------- 10/1/07- 3/31/08 5/1/07- 5/1/06- (UNAUDITED) 9/30/07 4/30/07 ------------------ ----------- -------------- INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss) ..................................... $ 526 $ 800 $ 986 Net realized gain (loss) ......................................... 1,722 2,318 803 Net change in unrealized appreciation (depreciation) ............. (4,199) (1,607) 6,717 ------------------ ----------- -------------- Increase (decrease) in net assets resulting from operations ...... (1,951) 1,511 8,506 ------------------ ----------- -------------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A ................................... (531) (1,008) (787) Net investment income, Class B ................................... -- -- -- Net investment income, Class C ................................... (11) (25) (34) Net investment income, Class I ................................... -- -- -- Net realized short-term gains, Class A ........................... (244) -- -- Net realized short-term gains, Class B ........................... -- -- -- Net realized short-term gains, Class C ........................... (8) -- -- Net realized short-term gains, Class I ........................... -- -- -- Net realized long-term gains, Class A ............................ (2,038) (605) -- Net realized long-term gains, Class B ............................ -- -- -- Net realized long-term gains, Class C ............................ (66) (18) -- Net realized long-term gains, Class I ............................ -- -- -- ------------------ ----------- -------------- Decrease in net assets from distributions to shareholders ........ (2,898) (1,656) (821) ------------------ ----------- -------------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A ............ 6,050 6,904 29,555 Change in net assets from share transactions, Class B ............ -- -- -- Change in net assets from share transactions, Class C ............ 524 184 312 Change in net assets from share transactions, Class I ............ -- -- -- ------------------ ----------- -------------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS ........ 6,574 7,088 29,867 NET INCREASE (DECREASE) IN NET ASSETS ............................ 1,725 6,943 37,552 NET ASSETS Beginning of period .............................................. $ 59,902 52,959 15,407 ------------------ ----------- -------------- END OF PERIOD .................................................... $ 61,627 $ 59,902 $ 52,959 ================== =========== ============== Undistributed net investment income (loss) ....................... $ (11) $ 5 $ 233
See Notes to Financial Statements 58
ALTERNATIVE FUNDS FUNDS OF FUNDS ------------------------------------------------------------------ -------------------------------------- INTERNATIONAL REAL ESTATE SECURITIES FUND MARKET NEUTRAL FUND DIVERSIFIER PHOLIO(SM) ------------------------ -------------------------------------- -------------------------------------- 10/1/07- 10/1/07- 10/1/07- 3/31/08 3/31/08 11/1/06- 11/1/05- 3/31/08 8/1/07- 8/1/06- (UNAUDITED) (UNAUDITED) 9/30/07 10/31/06 (UNAUDITED) 9/30/07 7/31/07 ------------------------- ----------- ----------- ---------- ----------- ----------- ---------- $ 107 $ 56 $ 858 $ 1,146 $ 965 $ 396 $ 951 (95) 5,031 (6,287) (8,251) 568 (2,124) 653 (1,401) (5,826) 1,847 1,724) (4,196) 12,372 (2,914) ----------- ----------- ----------- ---------- ----------- ----------- ---------- (1,389) (739) (3,582) (8,829) (2,663) 10,644 (1,310) ----------- ----------- ----------- ---------- ----------- ----------- ---------- (175) (914) (1,038) -- (648) (59) (716) -- (20) (55) -- -- -- -- (3) (51) (194) -- (178) (37) (294) (1) -- -- -- -- -- -- -- -- -- -- -- (65) -- -- -- -- -- -- -- -- -- -- -- -- -- (41) -- -- -- -- -- -- -- -- -- -- -- -- -- (510) (2) -- -- -- -- -- -- -- -- -- -- -- -- (324) (2) -- -- -- -- -- -- -- ----------- ----------- ----------- ---------- ----------- ----------- ---------- (179) (985) (1,287) -- (826) (1,036) (1,014) ----------- ----------- ----------- ---------- ----------- ----------- ---------- 12,772 33,503 (30,541) (15,950) 48,618 8,461 95,503 -- (576) (1,465) (3,098) -- -- -- 245 (1,145) (10,426) (19,931) 19,497 3,995 60,907 101 -- -- -- -- -- -- 13,118 31,782 (42,432) (38,979) 68,115 12,456 156,410 11,550 30,058 (47,301) (47,808) 64,626 22,064 154,086 -- 64,468 111,769 159,577 177,963 155,899 1,813 ----------- ----------- ----------- ---------- ----------- ----------- ---------- $ 11,550 $ 94,526 $ 64,468 $ 111,769 $ 242,589 $ 177,963 $ 155,899 ----------- ----------- ----------- ---------- ----------- ----------- ---------- $ (72) $ 40 $ 969 $ 1,261 $ 520 $ 381 $ 238
See Notes to Financial Statements 59 PHOENIX OPPORTUNITIES TRUST STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) (Reported in thousands)
FUNDS OF FUNDS --------------------------------------- WEALTH ACCUMULATOR PHOLIO(SM) --------------------------------------- 10/1/07- 3/31/08 8/1/07- 8/1/06- (UNAUDITED) 9/30/07 7/31/07 ------------ ----------- -------- INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss) ..................................... $ 21 $ (1) $ 51 Net realized gain (loss) ......................................... 298 (15) 371 Net change in unrealized appreciation (depreciation) ............. (2,079) 662 794 ------------ ----------- -------- Increase (decrease) in net assets resulting from operations ...... (1,760) 646 1,216 ------------ ----------- -------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A ................................... (115) (29) (190) Net investment income, Class B ................................... -- -- -- Net investment income, Class C ................................... (46) (13) (74) Net investment income, 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 short-term gains, Class I ........................... -- -- -- Net realized long-term gains, Class A ............................ (49) (97) (16) Net realized long-term gains, Class B ............................ -- -- -- Net realized long-term gains, Class C ............................ (24) (46) (9) Net realized long-term gains, Class I ............................ -- -- -- ------------ ----------- -------- Decrease in net assets from distributions to shareholders ........ (234) (185) (289) ------------ ----------- -------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A ............ 99 519 5,061 Change in net assets from share transactions, Class B ............ -- -- -- Change in net assets from share transactions, Class C ............ 157 522 1,048 Change in net assets from share transactions, Class I ............ -- -- -- ------------ ----------- -------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS ........ 256 1,041 6,109 NET INCREASE (DECREASE) IN NET ASSETS ............................ (1,738) 1,502 7,036 NET ASSETS Beginning of period .............................................. 14,125 12,623 5,587 ------------ ----------- -------- END OF PERIOD .................................................... $ 12,387 $ 14,125 $ 12,623 ============ =========== ======== Undistributed net investment income (loss) ....................... $ (141) $ (1) $ 40
See Notes to Financial Statements 60
FUNDS OF FUNDS -------------------------------------------------------------------------------------- WEALTH BUILDER PHOLIO(SM) WEALTH GUARDIAN PHOLIO(SM) -------------------------------------------- -------------------------------------- 10/1/07- 10/1/07- 3/31/08 8/1/07- 8/1/06- 3/31/08 8/1/07- 8/1/06- (UNAUDITED) 9/30/07 7/31/07 (UNAUDITED) 9/30/07 7/31/07 ------------ ------------ ------------ ----------- --------- ----------- $ 739 $ 64 $ 1,472 $ 584 $ 77 $ 1,131 3,358 496 8,897 1,007 55 2,890 (16,742) 4,880 6,637 (5,980) 1,941 2,333 ------------ ------------ ------------ --------- --------- ----------- (12,645) 5,440 17,006 (4,389) 2,073 6,354 ------------ ------------ ------------ --------- --------- ----------- (842) (109) (1,832) (482) (115) (975) -- -- -- -- -- -- (850) (145) (1,955) (402) (126) (930) -- -- -- -- -- -- (98) (135) (200) (27) (62) (124) -- -- -- -- -- -- (127) (179) (277) (28) (68) (157) -- -- -- -- -- -- (671) (2,561) (757) (228) (845) (264) -- -- -- -- -- -- (864) (3,404) (1,048) (237) (924) (334) -- -- -- -- -- -- ------------ ------------ ------------ --------- --------- ----------- (3,452) (6,533) (6,069) (1,404) (2,140) (2,784) ------------ ------------ ------------ --------- --------- ----------- (1,519) 2,233 549 293 454 2,999 -- -- -- -- -- -- (5,165) 1,798 (5,504) (2,210) 85 (3,524) -- -- -- -- -- -- (6,684) 4,031 (4,955) (1,917) 539 (525) ------------ ------------ ------------ --------- --------- ----------- (22,781) 2,938 5,982 (7,710) 472 3,045 135,844 132,906 126,924 62,062 61,590 58,545 ------------ ------------ ------------ --------- --------- ----------- $ 113,063 $ 135,844 $ 132,906 $ 54,352 $ 62,062 $ 61,590 ============ ============ ============ ========= ========= ============ $ (899) $ 54 $ 243 $ (228) $ 72 $ 234
See Notes to Financial Statements 61 PHOENIX OPPORTUNITIES TRUST STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) (Reported in thousands)
FIXED INCOME FUNDS -------------------------- BOND FUND -------------------------- 10/1/07- 3/31/08 0/1/06- (UNAUDITED) 9/30/07 ----------- -------- INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss) ................................. $ 1,759 $ 4,006 Net realized gain (loss) ..................................... 694 465 Net change in unrealized appreciation (depreciation) ......... (181) (785) ----------- -------- Increase (decrease) in net assets resulting from operations .. 2,272 3,686 ----------- -------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A ............................... (609) (1,223) Net investment income, Class B ............................... (77) (185) Net investment income, Class C ............................... (39) (54) Net investment income, Class I ............................... (1,078) (2,660) Net realized short-term gains, Class A ...................... -- -- Net realized short-term gains, Class B ....................... -- -- Net realized short-term gains, Class C ....................... -- -- Net realized short-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 ........................ -- -- Net realized long-term gains, Class I......................... -- -- ----------- -------- Decrease in net assets from distributions to shareholders .... (1,803) (4,122) ----------- -------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A ........ (1,204) 1,184 Change in net assets from share transactions, Class B ........ 172 (1,137) Change in net assets from share transactions, Class C ........ 1,128 140 Change in net assets from share transactions, Class I ........ (15,306) (10,840) ----------- -------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS .... (15,210) (10,653) NET INCREASE (DECREASE) IN NET ASSETS ........................ (14,741) (11,089) NET ASSETS Beginning of period .......................................... 86,949 98,038 ----------- -------- END OF PERIOD ................................................ $ 72,208 $ 86,949 =========== ======== Undistributed net investment income (loss) ................... $ (52) $ (8)
See Notes to Financial Statements 62
FIXED INCOME FUNDS ----------------------------------------------------------------------------------------- CA TAX-EXEMPT BOND FUND CORE BOND FUND ------------------------------------------ -------------------------------------------- 10/1/07- 10/1/07- 3/31/08 5/1/07- 5/1/06- 3/31/08 11/1/06- 11/1/05- (UNAUDITED) 9/30/07 4/30/07 (UNAUDITED) 9/30/07 10/31/06 ---------------- ---------- ---------- ------------ ------------ ------------- $ 1,324 $ 1,108 $ 2,344 $ 1,445 $ 2,683 $ 3,203 5 (147) 608 436 1,461 (549) (863) (833) (36) (454) (500) 537 ---------------- ---------- ---------- ------------ ------------ ------------- 466 128 2,916 1,427 3,644 3,191 ---------------- ---------- ---------- ------------ ------------ ------------- (717) (604) (1,690) (1,429) (2,823) (3,378) -- -- (1) (30) (60) (88) -- -- -- (26) (47) (53) (581) (462) (698) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (42) (374) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (29) (258) -- -- -- ---------------- ---------- ---------- ------------ ------------ ------------- (1,298) (1,137) (3,021) (1,485) (2,930) (3,519) ---------------- ---------- ---------- ------------ ------------ ------------- (894) (2,553) (4,211) (1,831) (4,913) (10,189) -- -- (156) (89) (161) (616) -- -- -- 347 (87) 31 2,449 (262) 29,299 -- -- -- ---------------- ---------- ---------- ------------ ------------ ------------- 1,555 (2,815) 24,932 (1,573) (5,161) (10,774) 723 (3,824) 24,827 (1,631) (4,447) (11,102) 67,371 71,195 46,368 65,994 70,441 81,543 ---------------- ---------- ---------- ------------ ------------ ------------- $ 68,094 $ 67,371 $ 71,195 $ 64,363 $ 65,994 $ 70,441 ================ ========== ========== ============ ============ ============= $ 60 $ 34 $ (11) $ (20) $ 20 $ 79
See Notes to Financial Statements 63 PHOENIX OPPORTUNITIES TRUST STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) (Reported in thousands)
FIXED INCOME FUNDS ----------------------------------- HIGH YIELD FUND ----------------------------------- 10/1/07- 3/31/08 11/1/06- 11/1/05- (UNAUDITED) 9/30/07 10/31/06 ----------- --------- --------- INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss) ................................. $ 4,354 $ 8,193 $ 9,135 Net realized gain (loss) ..................................... (4,560) 2,695 664 Net change in unrealized appreciation (depreciation).......... (6,257) (2,873) 1,043 --------- --------- --------- Increase (decrease) in net assets resulting from operations... (6,463) 8,015 10,842 --------- --------- --------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A ............................... (4,424) (8,219) (9,234) Net investment income, Class B ............................... (72) (198) (334) Net investment income, Class C ............................... (64) (109) (83) Net investment income, 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 A ........................ -- -- -- Net realized long-term gains, Class B ........................ -- -- -- Net realized long-term gains, Class C ........................ -- -- -- --------- --------- --------- Decrease in net assets from distributions to shareholders .... (4,560) (8,526) (9,651) --------- --------- --------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A......... (7,031) (6,709) (12,773) Change in net assets from share transactions, Class B......... (656) (2,005) (3,252) Change in net assets from share transactions, Class C......... (267) 515 (187) Change in net assets from share transactions, Class I......... -- -- -- --------- --------- --------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS..... (7,954) (8,199) (16,212) --------- --------- --------- NET INCREASE (DECREASE) IN NET ASSETS ........................ (18,977) (8,710) (15,021) --------- --------- --------- NET ASSETS Beginning of period .......................................... 129,878 138,588 153,609 --------- --------- --------- END OF PERIOD ................................................ $ 110,901 $ 129,878 $ 138,588 ========= ========= ========= Undistributed net investment income (loss) ................... $ (71) $ 135 $ (43)
See Notes to Financial Statements 64
FIXED INCOME FUNDS ---------------------------------------------------------------------------------------------------------- MONEY MARKET FUND MULTI-SECTOR FIXED INCOME FUND SENIOR FLOATING RATE FUND ------------------------------------ ----------------------------------- ------------------------- 10/1/07- 10/1/07- 1/31/08- 3/31/08 11/1/06- 11/1/05- 3/31/08 11/1/06- 11/1/05- 3/31/08 (UNAUDITED) 9/30/07 10/31/06 (UNAUDITED) 9/30/07 10/31/06 (UNAUDITED) ----------- ---------- --------- ----------- --------- -------- ------------------------- $ 1,756 $ 3,894 $ 4,045 $ 4,504 $ 7,414 $ 7,847 $ 123 10 (5) -- 834 988 467 (32) -- -- -- (8,907) (1,394) 2,318 (86) --------- --------- --------- --------- --------- --------- -------- 1,766 3,889 4,045 (3,569) 7,008 10,632 5 --------- --------- --------- --------- --------- --------- -------- (1,755) (3,894) (4,045) (3,193) (5,563) (5,923) (123) -- -- -- (357) (581) (665) -- -- -- -- (507) (815) (705) (1) -- -- -- -- -- -- (2) --------- --------- --------- --------- --------- --------- -------- (1,755) (3,894) (4,045) (4,057) (6,959) (7,293) (126) --------- --------- --------- --------- --------- --------- -------- 3,356 (2,955) (11,616) (4,056) 22 (3,125) 14,729 -- -- -- 129 51 (3,087) -- -- -- -- (438) 3,486 1,666 201 -- -- -- -- -- -- 202 --------- --------- --------- --------- --------- --------- -------- 3,356 (2,955) (11,616) (4,365) 3,559 (4,546) 15,132 --------- --------- --------- --------- --------- --------- -------- 3,367 (2,960) (11,616) (11,991) 3,608 (1,207) 15,011 --------- --------- --------- --------- --------- --------- -------- 96,819 99,779 111,395 148,340 144,732 145,939 -- --------- --------- --------- --------- --------- --------- -------- $ 100,186 $ 96,819 $ 99,779 $ 136,349 $ 148,340 $ 144,732 $ 15,011 ========= ========= ========= ========= ========= ========= ======== $ 13 $ 12 $ -- $ 1,041 $ 594 $ 8 $ (3)
See Notes to Financial Statements 65 PHOENIX OPPORTUNITIES TRUST STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) (Reported in thousands)
INTERNATIONAL FUNDS ------------------------------------ INTERNATIONAL STRATEGIES FUND ------------------------------------ 10/1/07- 3/31/08 12/1/06- 12/1/05- (UNAUDITED) 9/30/07 11/30/06 ----------- ---------- --------- INCREASE/(DECREASE) IN NET ASSETS OPERATIONS Net investment income (loss).................................... $ 67 $ 971 $ 963 Net realized gain (loss) ....................................... 1,156 10,843 7,464 Net change in unrealized appreciation (depreciation)............ (15,794) 3,613 12,623 --------- --------- --------- Increase (decrease) in net assets resulting from operations..... (14,571) 15,427 21,050 --------- --------- --------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A ................................. (588) (1,186) (1,090) Net investment income, Class B ................................. (30) (53) (32) Net investment income, Class C ................................. (14) (19) (8) 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 ............................ -- -- -- Net realized long-term gains, Class B .......................... -- -- -- Net realized long-term gains, Class C .......................... -- -- -- --------- --------- --------- Decrease in net assets from distributions to shareholders....... (632) (1,258) (1,130) --------- --------- --------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A .......... (3,260) (1,330) (5,469) Change in net assets from share transactions, Class B........... (1,247) (872) (925) Change in net assets from share transactions, Class C........... (77) (158) 331 Change in net assets from share transactions, Class I........... -- -- -- --------- --------- --------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS ...... (4,584) (2,360) (6,063) NET INCREASE (DECREASE) IN NET ASSETS .......................... (19,787) 11,809 13,857 NET ASSETS Beginning of period ............................................ 104,604 92,795 78,938 --------- --------- --------- END OF PERIOD .................................................. $ 84,817 $ 104,604 $ 92,795 ========= ========= ========= Undistributed net investment income (loss) ..................... $ 53 $ 618 $ 843
(1) Amount is less than $500. See Notes to Financial Statements 66
INTERNATIONAL FUNDS ------------------------------------ WORLDWIDE STRATEGIES FUND ------------------------------------ 10/1/07- 3/31/08 7/1/07- 7/1/06- (UNAUDITED) 9/30/07 6/30/07 ----------- --------- --------- $ 210 $ 168 $ 1,121 1,240 1,843 13,035 (17,091) 228 11,519 --------- --------- --------- (15,641) 2,239 25,675 --------- --------- --------- (188) (772) (1,242) -- (18) (31) -- (7) (11) (23) -- -- (1) -- -- --(1) -- -- (2,146) (6,668) -- (93) (315) -- (38) (117) -- --------- --------- --------- (2,489) (7,897) (1,284) --------- --------- --------- (3,169) 4,582 (8,068) (823) 129 (1,391) (1) 111 (1,315) -- -- -- --------- --------- --------- (3,993) 4,822 (10,774) (22,123) (836) 13,617 123,785 124,621 111,004 --------- --------- --------- $ 101,662 $ 123,785 $ 124,621 ========= ========= ========= $ 200 $ 178 $ 787
See Notes to Financial Statements 67 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 TOTAL OF PERIOD (LOSS) (2) GAIN (LOSS) OPERATIONS INCOME GAINS DISTRIBUTIONS ------------------------------------------------------------------------------------------------------------------------------- --------------------- GLOBAL UTILITIES FUND --------------------- CLASS A 10/1/07 to 3/31/08 (13) $ 13.70 $ 0.12 $ (0.46) $ (0.34) $ (0.12) $ (0.51) $ (0.63) 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 10/1/07 to 3/31/08 (13) $ 13.66 $ 0.06 $ (0.44) $ (0.38) $ (0.07) $ (0.51) $ (0.58) 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) ----------------------------------------- INTERNATIONAL REAL ESTATE SECURITIES FUND ----------------------------------------- CLASS A 10/1/07 (6) to 3/31/08 (13) $ 10.00 $ 0.09 $ (1.28) $ (1.19) $ (0.14) $ -- $ (0.14) CLASS C 10/1/07 (6) to 3/31/08 (13) $ 10.00 $ 0.06 $ (1.29) $ (1.23) $ (0.12) $ -- $ (0.12) CLASS I 10/1/07 (6) to 3/31/08 (13) $ 10.00 $ 0.10 $ (1.29) $ (1.19) $ (0.14) $ -- $ (0.14)
NET ASSET NET NET TOTAL DIVIDENDS VALUE, INVESTMENT REALIZED AND FROM FROM NET CHANGE IN BEGINNING INCOME UNREALIZED INVESTMENT INVESTMENT TOTAL NET ASSET OF PERIOD (LOSS) (2) GAIN (LOSS) OPERATIONS INCOME DISTRIBUTIONS VALUE ------------------------------------------------------------------------------------------------------------------------------- ------------------- MARKET NEUTRAL FUND ------------------- CLASS A 10/1/07 to 3/31/08 (13) $ 10.53 $ 0.01 $ (0.13) $ (0.12) $ (0.16) $ (0.16) $ (0.28) 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 10/1/07 to 3/31/08 (13) $ 10.17 $ (0.02) $ (0.13) $ (0.15) $ (0.09) $ (0.09) $ (0.24) 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 10/1/07 to 3/31/08 (13) $ 10.12 $ (0.02) $ (0.13) $ (0.15) $ (0.08) $ (0.08) $ (0.23) 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 68
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 ----------------------------------------------------------------------------------------------------- $ (0.97) $ 12.73 (2.87) (4) $ 59,304 1.15% (3) 1.18% (3) 1.67% (3) 23% (4) 0.04 13.70 3.02 (4) 57,938 1.19 (3) 1.25 (3) 3.23 (3) 29 (4) 3.06 13.66 33.74 51,190 1.17 1.40 3.64 21 0.47 10.60 8.66 14,298 1.15 2.72 4.06 40 0.13 10.13 2.09 (4) 6,163 1.15 (3) 5.59 3.81 (3) 17 (4) $ (0.96) $ 12.70 (3.18)% (4) $ 2,323 1.90% (3) 1.93% 0.93% (3) 23% (4) 0.04 13.66 2.72 (4) 1,964 1.95 (3) 2.00 2.47 (3) 29 (4) 3.05 13.62 32.55 1,769 1.91 2.19 3.11 21 0.45 10.57 7.87 1,108 1.90 3.54 3.38 40 0.12 10.12 1.88 (4) 330 1.90 (3) 8.16 (3) 3.58 (3) 17 (4) $ (1.33) $ 8.67 (11.91)% (4) $ 11,242 1.50% (3) 2.48% (3) 2.06% (3) 4% (4) $ (1.35) $ 8.65 (12.32)% (4) $ 220 2.25% (3) 3.30% (3) 1.43% (3) 4% (4) $ (1.33) $ 8.67 (11.84)% (4) $ 88 1.25% (3) 2.47% (3) 2.24% (3) 4% (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 --------------------------------------------------------------------------------------------------------------- $ 10.25 (1.02)% (4) $ 86,600 3.54% (3) 3.87% (3) 1.86% (3) 0.22% (3) 173% (4) 10.53 (3.86) (4) 54,630 3.56 (3) 3.95 (3) 1.91 (3) 1.45 (3) 394 (4) 11.19 (5.81) 89,054 3.63 3.63 2.19 1.04 285 11.87 3.13 111,133 3.65 3.65 2.20 (0.26) 177 11.51 1.05 70,892 3.42 3.42 2.21 (1.45) 175 11.39 (5.79) 72,428 3.85 3.85 2.29 (2.08) 329 12.09 11.85 61,582 3.47 3.68 2.30 (1.33) 456 $ 9.93 (1.37)% (4) $ 2,025 4.20% (3) 4.56% (3) 2.58% (3) (0.33)% (3) 173% (4) 10.17 (4.64)% (4) 2,651 4.22 (3) 4.63 (3) 2.67 (3) 0.82 (3) 394 (4) 10.80 (6.41) 4,338 4.39 4.39 2.91 0.22 285 11.55 2.39 7,859 4.36 4.36 2.90 (1.14) 177 11.28 0.36 12,290 4.11 4.11 2.91 (2.15) 175 11.24 (6.49) 16,359 4.50 4.50 2.99 (2.74) 329 12.02 11.10 15,381 4.26 4.61 3.00 (2.02) 456 $ 9.89 (1.46)% (4) $ 5,901 4.21% (3) 4.56% (3) 2.58% (3) (0.33)% (3) 173% (4) 10.12 (4.57)% (4) 7,187 4.27 (3) 4.68 (3) 2.68 (3) 0.76 (3) 394 (4) 10.75 (6.44) 18,377 4.41 4.41 2.92 0.19 285 11.49 2.41 40,584 4.35 4.35 2.90 (0.97) 177 11.22 0.36 25,779 4.12 4.12 2.91 (2.15) 175 11.18 (6.44) 31,102 4.54 4.54 2.99 (2.77) 329 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 69 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(SM) ---------------------- CLASS A 10/1/07 to 3/31/08 (13) $ 11.80 $ 0.07 (2) 0.16 (2) $ (0.37) $ (0.14) $ (0.06) $ -- $ (0.06) 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 10/1/07 to 3/31/08 (13) $ 11.70 $ 0.03 (2) 0.16 (2) $ (0.37) $ (0.18) $ (0.03) $ -- $ (0.03) 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(SM) ----------------------------- CLASS A 10/1/07 to 3/31/08 (13) $ 12.58 $ 0.03 (2) 0.32 (2) $ (1.90) $ (1.55) $ (0.15) $ (0.07) $ (0.22) 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 10/1/07 to 3/31/08 (13) $ 12.49 $ (0.01)(2) 0.32 (2) $ (1.89) $ (1.58) $ (0.13) $ (0.07) $ (0.20) 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) ------------------------- CLASS A 10/1/07 to 3/31/08 (13) $ 12.81 $ 0.10 (2) 0.28 (2) $ (1.57) $ (1.19) $ (0.19) $ (0.17) $ (0.36) 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 10/1/07 to 3/31/08 (13) $ 12.74 $ 0.05 (2) 0.28 (2) $ (1.57) $ (1.24) $ (0.15) $ (0.17) $ (0.32) 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) -------------------------- CLASS A 10/1/07 to 3/31/08 (13) $ 12.01 $ 0.13 (2) 0.18 (2) $ (1.15) $ (0.84) $ (0.19) $ (0.10) $ (0.29) 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)
See Notes to Financial Statements 70
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 ---------------------------------------------------------------------------------------------------------------------------- $ (0.20) $ 11.60 (1.20)% (4) $ 156,091 0.33% (3) 0.52% (3) 1.24% (3) 13% (4) 0.65 11.80 6.45 (4) 109,620 0.34 (3) 0.54 (3) 1.74 (3) 18 (4) 0.52 11.15 6.76 95,230 0.26 0.51 1.61 11 0.63 10.63 6.72 (4) 1,231 0.20 (3) 31.52 (3) 1.11 (3) 81 (4) $ (0.21) $ 11.49 (1.57)% (4) $ 86,498 1.08% (3) 1.27% (3) 0.46% (3) 13% (4) 0.63 11.70 6.32 (4) 68,343 1.09 (3) 1.29 (3) 0.99 (3) 18 (4) 0.49 11.07 6.01 60,669 1.01 1.26 0.93 11 0.58 10.58 6.16 (4) 581 0.95 (3) 46.88 (3) 0.38 (3) 81 (4) $ (1.77) $ 10.81 (12.55)% (4) $ 8,412 0.30% (3) 0.87% (3) 0.56% (3) 15% (4) 0.42 12.58 4.83 (4) 9,647 0.28 (3) 0.83 (3) 0.19 (3) 1 (4) 1.43 12.16 16.75 8,806 0.06 0.97 0.79 50 0.73 10.73 7.82 (4) 3,208 0.09 (3)(7) 7.43 (3) 0.63 (3) 13 (4) $ (1.78) $ 10.71 (12.89)% (4) $ 3,975 1.05% (3) 1.62% (3) (0.20)% (3) 15% (4) 0.40 12.49 4.69 (4) 4,478 1.04 (3) 1.58 (3) (0.54) (3) 1 (4) 1.41 12.09 15.85 3,818 0.80 1.79 0.04 50 0.68 10.68 6.97 (4) 2,379 0.83 (3)(7) 8.19 (3) (0.12) (3) 13 (4) $ (1.55) $ 11.26 (9.53)% (4) $ 50,110 0.21% (3) 0.45% (3) 1.62% (3) 9% (4) (0.10) 12.81 4.23 (4) 58,663 0.26 (3) 0.49 (3) 0.72 (3) 2 (4) 1.02 12.91 14.16 56,857 0.06 0.45 1.54 43 (0.18) 11.89 5.76 51,755 0.20 (7) 0.45 1.25 74 1.18 12.07 11.76 47,934 0.40 0.45 0.93 4 0.89 10.89 9.89 29,566 0.40 0.77 1.11 0 $ (1.56) $ 11.18 (9.96)% (4) $ 62,953 0.96% (3) 1.19% (3) 0.85% (3) 9% (4) (0.11) 12.74 4.17 (4) 77,181 1.01 (3) 1.24 (3) (0.03) (3) 2 (4) 1.01 12.85 13.29 76,049 0.80 1.20 0.79 43 (0.18) 11.84 4.99 75,168 0.96 (7) 1.19 0.48 74 1.16 12.02 11.01 84,281 1.15 1.20 0.19 4 0.86 10.86 9.03 58,012 1.15 1.47 0.34 0 $ (1.13) $ 10.88 (7.10)% (4) $ 27,173 0.22% (3) 0.45% (3) 2.33% (3) 13% (4) (0.01) 12.01 3.48 (4) 29,742 0.27 (3) 0.48 (3) 1.15 (3) 2 (4) 0.71 12.02 11.82 29,304 0.05 0.46 2.28 41 (0.30) 11.31 4.43 24,768 0.26 (7) 0.56 1.92 67 0.87 11.61 9.74 20,696 0.52 0.65 1.56 5 0.74 10.74 9.15 10,182 0.52 1.35 1.92 1
The footnote legend is at the end of the financial highlights. See Notes to Financial Statements 71 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 ------------------------------------------------------------------------------------------------------------------------------------ -------------------------------------- WEALTH GUARDIAN PHOLIO(SM) (CONTINUED) -------------------------------------- CLASS C 10/1/07 to 3/31/08 (13) $ 11.98 $ 0.10 (2) $ 0.18 (2) $ (1.15) $ (0.87) $ (0.16) $ (0.10) $ (0.26) 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) --------- BOND FUND --------- CLASS A 10/1/07 to 3/31/08 (13) $ 10.21 $ 0.21 (2) $ -- $ 0.07 $ 0.28 $ (0.22) $ -- $ (0.22) 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 10/1/07 to 3/31/08 (13) $ 10.01 $ 0.17 (2) $ -- $ 0.07 $ 0.24 $ (0.18) $ -- $ (0.18) 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 10/1/07 to 3/31/08 (13) $ 10.04 $ 0.17 (2) $ -- $ 0.06 $ 0.23 $ (0.18) $ -- $ (0.18) 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) CLASS I 10/1/07 to 3/31/08 (13) $ 10.32 $ 0.23 (2) $ -- $ 0.06 $ 0.29 $ (0.23) $ -- $ (0.23) 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) ----------------------- CA TAX-EXEMPT BOND FUND ----------------------- CLASS A 10/1/07 to 3/31/08 (13) $ 12.09 $ 0.23 (2) $ -- $ (0.14) $ 0.09 $ (0.23) $ -- $ (0.23) 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)
See Notes to Financial Statements 72
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 ---------------------------------------------------------------------------------------------------------------- $ (1.13) $ 10.85 (7.42)% (4) $ 27,179 0.97% (3) 1.20% (3) 1.66% (3) 13% (4) (0.02) 11.98 3.40 (4) 32,320 1.01 (3) 1.23 (3) 0.39 (3) 2(4) 0.70 12.00 10.90 32,286 0.80 1.21 1.53 41 (0.30) 11.30 3.63 33,776 1.03 (7) 1.31 1.08 67 0.88 11.60 9.03 40,252 1.27 1.40 0.80 5 0.72 10.72 8.29 28,355 1.27 1.98 1.19 1 $ 0.06 $ 10.27 2.63% (4) $ 28,037 1.28% (3) 1.28% (3) 4.10% (3) 78% (4) (0.06) 10.21 4.09 29,077 1.12 1.12 4.25 266 (0.19) 10.27 3.51 28,022 1.11 1.15 4.21 275 (0.17) 10.46 2.14 29,501 1.15 1.19 3.20 221 (0.05) 10.63 4.33 29,864 1.11 1.11 3.37 136 0.39 10.68 8.28 21,263 1.15 1.21 3.65 244 $ 0.06 $ 10.07 2.27% (4) $ 4,485 2.04% (3) 2.04% (3) 3.35% (3) 78% (4) (0.06) 10.01 3.26 4,294 1.87 1.87 3.49 266 (0.21) 10.07 2.80 5,459 1.88 2.30 3.43 275 (0.16) 10.28 1.36 6,706 1.90 2.30 2.45 221 (0.06) 10.44 3.54 7,375 1.90 2.07 2.69 136 0.37 10.50 7.43 10,218 1.90 2.10 2.91 244 $ 0.05 $ 10.09 2.27% (4) $ 2,673 2.06% (3) 2.06% (3) 3.32% (3) 78% (4) (0.05) 10.04 3.25 1,534 1.87 1.87 3.50 266 (0.21) 10.09 2.79 1,401 1.88 3.44 3.41 275 (0.16) 10.30 1.35 2,038 1.90 2.90 2.44 221 (0.06) 10.46 3.53 3,829 1.90 2.37 2.64 136 0.37 10.52 7.42 4,754 1.90 2.41 2.91 244 $ 0.06 $ 10.38 2.82% (4) $ 37,013 1.02% (3) 1.02% (3) 4.36% (3) 78% (4) (0.04) 10.32 4.32 52,044 0.87 0.87 4.49 266 (0.20) 10.36 3.84 63,156 0.82 0.82 4.59 275 (0.17) 10.56 2.44 30,126 0.89 0.89 3.45 221 (0.05) 10.73 4.54 39,476 0.80 0.80 3.72 136 0.39 10.78 8.57 35,966 0.86 0.86 3.93 244 $ (0.14) $ 11.95 0.72% (4) $ 37,767 0.85% (3) 0.99% (3) 3.79% (3) 4% (4) (0.17) 12.09 0.18 (4) 39,094 0.88 (3) 1.05 (3) 3.74 (3) 4 (4) 0.07 12.26 5.40 42,243 0.87 1.10 3.81 19 (0.52) 12.19 0.71 46,214 1.02 (7) 1.28 3.89 8 0.22 12.71 6.48 53,113 1.19 1.19 3.78 11 (0.50) 12.49 0.71 57,334 1.19 1.19 3.69 11 0.17 12.99 8.19 68,109 1.09 1.09 3.84 27
The footnote legend is at the end of the financial highlights. See Notes to Financial Statements 73 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 ---------------------------------------------------------------------------------------------------------------------------------- ----------------------------------- CA TAX-EXEMPT BOND FUND (CONTINUED) ----------------------------------- CLASS I 10/1/07 to 3/31/08 (13) $ 2.08 $ 0.24 (2) $ (0.14) $ 0.10 $ (0.24) $ -- $ -- $ (0.24) 5/1/07 to 9/30/07 2.25 0.20 (2) (0.17) 0.03 (0.19) (0.01) -- (0.20) 9/29/06(6) to 4/30/07 2.43 0.28 (2) (0.06) 0.22 (0.30) (0.10) -- (0.40) -------------- CORE BOND FUND -------------- CLASS A 10/1/07 to 3/31/08 (13) $ 8.32 $ 0.19 (2) $ (0.01) $ 0.18 $ (0.19) $ -- $ -- $ (0.19) 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) CLASS B 10/1/07 to 3/31/08 (13) $ 8.26 $ 0.15 (2) $ -- (5) $ 0.15 $ (0.16) $ -- $ -- $ (0.16) 11/1/06 to 930/07 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 10/1/07 to 3/31/08 (13) $ 8.29 $ 0.16 (2) $ (0.01) $ 0.15 $ (0.16) $ -- $ -- $ (0.16) 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) --------------- HIGH YIELD FUND --------------- CLASS A 10/1/07 to 3/31/08 (13) $ 4.89 $ 0.17 (2) $ (0.42) $ (0.25) $ (0.18) $ -- $ -- $ (0.18) 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) CLASS B 10/1/07 to 3/31/08 (13) $ 4.81 $ 0.15 (2) $ (0.41) $ (0.26) $ (0.16) $ -- $ -- $ (0.16) 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)
See Notes to Financial Statements 74
RATIO OF RATIO OF RATIO OF NET NET NET GROSS NET ASSET ASSETS, OPERATING OPERATING INVESTMENT CHANGE VALUE, END OF EXPENSES TO EXPENSES TO INCOME TO IN NET END OF TOTAL PERIOD AVERAGE AVERAGE AVERAGE PORTFOLIO ASSET VALUE PERIOD RETURN(1) (000'S) NET ASSETS NET ASSETS NET ASSETS TURNOVER ----------------------------------------------------------------------------------------------- $ (0.14) $ 11.94 0.85% (4) $ 30,327 0.60% (3) 0.73% (3) 4.04% (3) 4% (4) (0.17) 12.08 0.30 (4) 28,277 0.64 (3) 0.80 (3) 3.99 (3) 4 (4) (0.18) 12.25 1.79 (4) 28,952 0.64 (3) 0.79 (3) 3.90 (3) 19 (4) $ (0.01) $ 8.31 2.20% (4) $ 61,287 1.00% (3) 1.15% (3) 4.46% (3) 18% (4) 0.08 8.32 5.44 (4) 63,165 1.05 (3) 1.24 (3) 4.33 (3) 46 (4) (0.02) 8.24 4.59 67,393 1.08 (7) 1.24 4.28 48 (0.39) 8.26 0.34 77,880 1.25 1.25 3.73 65 (0.11) 8.65 3.95 92,278 1.18 1.18 4.29 45 (0.17) 8.76 3.96 104,092 1.16 1.16 4.37 101 (0.50) 8.93 1.07 115,184 1.15 1.15 5.40 70 $ (0.01) $ 8.25 1.97% (4) $ 1,514 1.75% (3) 1.90% (3) 3.71% (3) 18% (4) 0.08 8.26 4.68 (4) 1,604 1.80 (3) 2.01 (3) 3.58 (3) 46 (4) (0.03) 8.18 3.72 1,749 1.84 (7) 1.98 3.54 48 (0.38) 8.21 (0.29) 2,390 2.00 2.00 2.97 65 (0.12) 8.59 3.10 3,668 1.93 1.93 3.57 45 (0.18) 8.71 3.08 6,628 1.91 1.91 3.62 101 (0.50) 8.89 0.31 9,471 1.90 1.90 4.65 70 $ (0.01) $ 8.28 1.84% (4) $ 1,562 1.75% (3) 1.89% (3) 3.72% (3) 18% (4) 0.08 8.29 4.76 (4) 1,225 1.80 (3) 1.99 (3) 3.58 (3) 46 (4) (0.02) 8.21 3.84 1,299 1.83 (7) 1.99 3.54 48 (0.39) 8.23 (0.40) 1,273 2.00 2.00 2.99 65 (0.11) 8.62 3.21 1,298 1.93 1.93 3.57 45 (0.18) 8.73 3.06 1,385 1.91 1.91 3.63 101 (0.50) 8.91 0.31 1,212 1.90 1.90 4.66 70 $ (0.43) $ 4.46 (5.18)% (4) $107,506 1.33% (3) 1.33% (3) 7.30% (3) 43% (4) (0.02) 4.89 6.06 (4) 125,200 1.39 (3) 1.39 (3) 6.59 (3) 102 (4) 0.03 4.91 7.52 132,408 1.37 1.37 6.25 161 (0.23) 4.88 2.37 144,060 1.36 1.36 6.23 59 0.09 5.11 8.85 174,527 1.32 1.32 6.57 99 0.51 5.02 0.54 192,428 1.32 1.32 7.17 176 (0.68) 4.51 (4.33) 183,028 1.33 (10) 1.33 9.06 114 $ (0.42) $ 4.39 (5.44)% (4) $ 1,752 2.08% (3) 2.08% (3) 6.53% (3) 43% (4) (0.03) 4.81 5.22 (4) 2,597 2.13 (3) 2.13 (3) 5.78 (3) 102 (4) 0.03 4.84 6.83 4,595 2.12 2.12 5.46 161 (0.24) 4.81 1.46 7,791 2.11 2.11 5.47 59 0.09 5.05 8.18 14,574 2.07 2.07 5.90 99 0.49 4.96 9.39 22,499 2.07 2.07 6.43 176 (0.67) 4.47 (4.88) 22,074 2.08 (10) 2.08 8.32 114
The footnote legend is at the end of the financial highlights. See Notes to Financial Statements 75 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 C 10/1/07 to 3/31/08 (13) $ 4.84 $ 0.15 (2) $ (0.42) $ (0.27) $ (0.16) $ -- $ -- $ (0.16) 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 10/1/07 to 3/31/08 (13) $ 1.00 $ 0.02 $ -- $ 0.02 $ (0.02) $ -- $ -- $ (0.02) 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 10/1/07 to 3/31/08 (13) $ 10.89 $ 0.34 (2) $ (0.59) $ (0.25) $(0.31) $ -- $ -- $ (0.31) 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 10/1/07 to 3/31/08 (13) $ 10.88 $ 0.30 (2) $ (0.60) $ (0.30) $ (0.27) $ -- $ -- $ (0.27) 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 (0.62) -- -- (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 10/1/07 to 3/31/08 (13) $ 10.94 $ 0.31 (2) $ (0.61) $ (0.30) $ (0.27) $ -- $ -- $ (0.27) 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 76
RATIO OF RATIO OF RATIO OF NET NET NET GROSS NET ASSET ASSETS, OPERATING OPERATING INVESTMENT CHANGE VALUE, END OF EXPENSES TO EXPENSES TO INCOME TO IN NET END OF TOTAL PERIOD AVERAGE AVERAGE AVERAGE PORTFOLIO ASSET VALUE PERIOD RETURN (1) (000'S) NET ASSETS NET ASSETS NET ASSETS TURNOVER --------------------------------------------------------------------------------------------------------- $ (0.43) $ 4.41 (5.61)% (4) $ 1,643 2.08% (3) 2.08% (3) 6.55% (3) 43% (4) (0.03) 4.84 5.20 (4) 2,081 2.14 (3) 2.14 (3) 5.89 (3) 102 (4) 0.03 4.87 6.80 1,585 2.12 2.12 5.48 161 (0.23) 4.84 1.66 1,758 2.11 2.11 5.48 59 0.08 5.07 8.14 1,990 2.07 2.07 5.87 99 0.50 4.99 19.30 2,877 2.07 2.07 6.43 176 (0.67) 4.49 (4.88) 1,921 2.08 (10) 2.08 8.28 114 $ -- $ 1.00 1.87% (4) $ 100,186 0.78% (3) 0.78% (3) 3.64% (3) N/A -- 1.00 4.22 (4) 96,819 0.86 (3) 0.86 (3) 4.55 (3) N/A -- 1.00 4.04 99,779 0.84 0.90 3.95 N/A -- 1.00 2.00 111,395 0.85 0.89 1.94 N/A -- 1.00 0.66 139,996 0.65 0.92 0.65 N/A -- 1.00 1.00 156,098 0.37 0.87 1.00 N/A -- 1.00 1.38 184,390 0.79 0.86 1.37 N/A $ (0.56) $ 10.33 (2.30)% (4) $ 103,587 1.13% (3) 1.13% (3) 6.45% (3) 49% (4) 0.01 10.89 4.95 (4) 113,458 1.19 (3) 1.19 (3) 5.55 (3) 92 (4) 0.25 10.88 7.74 113,362 1.17 1.17 5.52 96 (0.53) 10.63 1.73 113,885 1.20 1.20 5.36 136 0.31 11.16 9.78 116,079 1.18 1.18 6.30 156 1.03 10.85 17.73 113,345 1.24 1.24 6.68 204 (0.21) 9.82 5.52 107,782 1.26 (10) 1.26 7.14 156 $ (0.57) $ 10.31 (2.77)% (4) $ 13,585 1.88% (3) 1.88% (3) 5.71% (3) 49% (4) 0.01 10.88 4.25 (4) 14,205 1.94 (3) 1.94 (3) 4.80 (3) 92 (4) 0.26 10.87 7.05 14,147 1.92 1.92 4.78 96 (0.52) 10.61 0.91 16,879 1.95 1.95 4.61 136 0.31 11.13 8.99 21,554 1.93 1.93 5.56 156 1.02 10.82 16.84 26,754 1.99 1.99 5.94 204 (0.21) 9.80 4.74 28,982 2.01 (10) 2.01 6.41 156 $ (0.57) $ 10.37 (2.75)% (4) $ 19,177 1.88% (3) 1.88% (3) 5.71% (3) 49% (4) 0.01 10.94 4.22 (4) 20,677 1.94 (3) 1.94 (3) 4.81 (3) 92 (4) 0.26 10.93 7.00 17,222 1.91 1.91 4.77 96 (0.51) 10.67 0.99 15,175 1.95 1.95 4.62 136 0.31 11.18 8.95 10,941 1.93 1.93 5.56 156 1.03 10.87 16.99 8,902 2.00 (10) 2.00 5.93 204 (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 77 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 ----------------------------------------------------------------------------------------------------------------------------------- ------------------------- SENIOR FLOATING RATE FUND ------------------------- CLASS A 1/31/08 (6) to 3/31/08 (13) $ 10.00 $ 0.08 $ (0.08) $ -- $ (0.08) $ -- $ -- $ (0.08) CLASS C 1/31/08 (6) to 3/31/08 (13) $ 10.00 $ 0.07 $ (0.08) $ (0.01) $ (0.07) $ -- $ -- $ (0.07) CLASS I 1/31/08 (6) to 3/31/08 (13) $ 10.00 $ 0.09 $ (0.08) $ 0.01 $ (0.09) $ -- $ -- $ (0.09) ----------------------------- INTERNATIONAL STRATEGIES FUND ----------------------------- CLASS A 10/1/07 to 3/31/08 (13) $ 15.88 $ 0.02 $ (2.27) $ (2.25) $ (0.10) $ -- $ -- $ (0.10) 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 10/1/07 to 3/31/08 (13) $ 14.56 $ (0.04) $ (2.08) $ (2.12) $ (0.07) $ -- $ -- $ (0.07) 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 10/1/07 to 3/31/08 (13) $ 14.51 $ (0.04) $ (2.07) $ (2.11) $ (0.07) $ -- $ -- $ (0.07) 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) -- -- -- --
See Notes to Financial Statements 78
RATIO OF RATIO OF RATIO OF NET NET NET GROSS NET ASSET ASSETS, OPERATING OPERATING INVESTMENT CHANGE VALUE, END OF EXPENSES TO EXPENSES TO INCOME TO IN NET END OF TOTAL PERIOD AVERAGE AVERAGE AVERAGE PORTFOLIO ASSET VALUE PERIOD RETURN(1) (000'S) NET ASSETS NET ASSETS NET ASSETS TURNOVER ---------------------------------------------------------------------------------------------------------------- $ (0.08) $ 9.92 0.05% (4) $ 14,611 1.20% (3) 1.80% (3) 5.19% (3) 5% (4) $ (0.08) $ 9.92 (0.07)% (4) $ 200 1.95% (3) 2.55% (3) 4.44% (3) 5% (4) $ (0.08) $ 9.92 0.09% (4) $ 200 0.95% (3) 1.55% (3) 5.43% (3) 5% (4) $ (2.35) $13.53 (14.16)% (4) $ 78,280 1.59% (3) 1.59% (3) 0.21% (3) 37% (4) 2.12 15.88 16.91 (4) 95,453 1.62 (3) 1.62 (3) 1.27 (3) 69 (4) 2.80 13.76 27.39 83,849 1.60 1.68 1.16 86 1.12 10.96 13.61 71,335 1.79 1.89 1.06 142 1.63 9.84 22.36 57,946 1.83 1.83 1.23 50 1.10 8.21 15.47 51,664 2.02 2.02 0.90 38 (0.81) 7.11 (10.23) 52,234 1.90 1.90 0.19 33 $ (2.19) $12.37 (14.57)% (4) $ 4,454 2.33% (3) 2.33% (3) (0.59)% (3) 37% (4) 1.93 14.56 16.21 (4) 6,594 2.37 (3) 2.37 (3) 0.47 (3) 69 (4) 2.59 12.63 26.43 6,575 2.35 2.43 0.42 86 1.00 10.04 12.74 6,008 2.55 2.63 0.43 142 1.48 9.04 21.52 6,809 2.58 2.58 0.45 50 0.96 7.56 14.55 7,377 2.78 2.78 0.14 38 (0.80) 6.60 (10.81) 8,562 2.65 2.65 (0.56) 33 $ (2.18) $12.33 (14.55)% (4) $ 2,083 2.34% (3) 2.34% (3) (0.56)% (3) 37% (4) 1.92 14.51 16.18 (4) 2,557 2.37 (3) 2.37 (3) 0.47 (3) 69 (4) 2.59 12.59 26.54 2,371 2.35 2.43 0.48 86 0.99 10.00 12.67 1,595 2.55 2.64 0.39 142 1.47 9.01 21.45 1,286 2.58 2.58 0.48 50 0.98 7.54 14.94 1,029 2.78 2.78 0.14 38 (0.81) 6.56 (10.99) 1,017 2.65 2.65 (0.56) 33
The footnote legend is at the end of the financial highlights. See Notes to Financial Statements 79 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 ------------------------------------------------------------------------------------------------------------------------------------ ------------------------- WORLDWIDE STRATEGIES FUND ------------------------- CLASS A 10/1/07 to 3/31/08 (13) $ 11.59 $ 0.02 $ (1.51) $ (1.49) $ (0.02) $ (0.22) $ -- $ (0.24) 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 10/1/07 to 3/31/08 (13) $ 10.48 $ (0.02) $ (1.36) $ (1.38) $ -- $ (0.22) $ -- $ (0.22) 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 10/1/07 to 3/31/08 (13) $ 10.44 $ (0.02) $ (1.35) $ (1.37) $ -- $ (0.22) $ -- $ (0.22) 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 80
RATIO OF RATIO OF RATIO OF NET NET NET GROSS NET ASSET ASSETS, OPERATING OPERATING INVESTMENT CHANGE VALUE, END OF EXPENSES TO EXPENSES TO INCOME (LOSS) IN NET END OF TOTAL PERIOD AVERAGE AVERAGE TO AVERAGE PORTFOLIO ASSET VALUE PERIOD RETURN(1) (000'S) NET ASSETS NET ASSETS NET ASSETS TURNOVER -------------------------------------------------------------------------------------------------------- $ (1.73) $ 9.86 (13.03)% (4) $ 96,663 1.61% (3) 1.61% (3) 0.41% (3) 31% (4) (0.56) 11.59 1.93 (4) 116,983 1.60 (3) 1.60 (3) 0.59 (3) 15 (4) 2.29 12.15 24.61 117,709 1.61 1.64 1.01 74 1.48 9.86 18.90 102,783 1.60 1.70 0.76 124 0.66 8.38 9.80 100,469 1.57 1.57 0.97 49 1.35 7.72 22.65 107,520 1.62 1.62 0.46 122 (0.66) 6.37 (9.39) 98,135 1.73 1.73 0.81 160 $ (1.60) $ 8.88 (13.34)% (4) $ 3,437 2.36% (3) 2.36% (3) (0.37)% (3) 31% (4) (0.56) 10.48 1.65 (4) 4,945 2.35 (3) 2.35 (3) (0.15) (3) 15 (4) 2.06 11.04 23.76 5,074 2.36 2.39 0.22 74 1.33 8.98 17.92 5,395 2.35 2.45 0.01 124 0.60 7.65 9.14 5,096 2.32 2.32 0.23 49 1.24 7.05 21.78 5,987 2.37 2.37 (0.34) 122 (0.65) 5.81 (10.20) 6,730 2.48 2.48 0.04 160 $ (1.59) $ 8.85 (13.29)% (4) $ 1,562 2.36% (3) 2.36% (3) (0.33)% (3) 31% (4) (0.57) 10.44 1.67 (4) 1,857 2.35 (3) 2.35 (3) (0.15) (3) 15 (4) 2.06 11.01 23.74 1,838 2.36 2.38 0.23 74 1.33 8.95 17.99 2,826 2.35 2.45 (0.03) 124 0.59 7.62 9.03 2,876 2.32 2.32 0.22 49 1.23 7.03 21.66 3,306 2.37 2.37 (0.18) 122 (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 81 PHOENIX OPPORTUNITIES TRUST FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD 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 $0.005. (6) Inception date. (7) Represents blended net expense ratio. (8) The Fund of Funds will also 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) ---- -------- -------------- ------------ -------------- 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)
(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 this change 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 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 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) Unaudited. See Notes to Financial Statements 82 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATE MENTS MARCH 31, 2008 (UNAUDITED) 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 Funds' trusts, the Trust acquired a number of Phoenix funds effective June 27, 2007 and September 24, 2007. All of the acquired funds' fiscal year ends were changed to correspond with the Trust's September 30th fiscal 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 semiannual report. The Funds offer the following classes of shares for sale and have the following investment objectives:
INVESTMENT CLASS A CLASS B CLASS C CLASS I OBJECTIVE SHARES SHARES SHARES SHARES ---------- ------- ------- ------- ------- ALTERNATIVE FUNDS Global Utilities Fund (1) ........... Capital appreciation and current income. |X| -- |X| -- International Real Estate Securities Fund (2) ................ Primary objective of long-term capital |X| -- |X| |X| appreciation, with a secondary investment objective ofincome. Market Neutral Fund (1) ............. Long-term capital appreciation while |X| |X| |X| -- maintaining minimal portfolio exposure to general equity market risk. FUNDS OF FUNDS Diversifier PHOLIO(SM) (1) .......... Long-term capital appreciation. |X| -- |X| -- Wealth Accumulator PHOLIO(SM) (1) ... Long-term capital appreciation. |X| -- |X| -- Wealth Builder PHOLIO(SM) (1) ....... Long-term capital appreciation. |X| -- |X| -- Wealth Guardian PHOLIO(SM) (1) ...... Long-term capital appreciation and |X| -- |X| -- current income. FIXED INCOME FUNDS Bond Fund (1) ....................... High total return from both current |X| |X| |X| |X| income and capital appreciation. CA Tax-Exempt Bond Fund (1) ......... Obtain a high level of current income |X| -- -- |X| exempt from California state and local income taxes, as well as federal income tax, consistent with the preservation of capital. Core Bond Fund (1) .................. Current income and capital appreciation. |X| |X| |X| -- High Yield Fund (1) ................. Primary objective of current income and |X| |X| |X| -- a secondary objective of capital growth. Money Market Fund (1) ............... As high a level of current income as is |X| -- -- -- consistent with the preservation of capital and maintenance of liquidity. Multi-Sector Fixed Income Maximize current income while preserving |X| |X| |X| -- Fund (1) ........................... capital. Senior Floating Rate Fund (1) ....... High total return from both current |X| -- |X| |X| income and capital appreciation. INTERNATIONAL FUNDS International Strategies High total return consistent with |X| |X| |X| -- Fund (1) ............................ reasonable risk. Worldwide Strategies Fund (1) ....... Capital appreciation. |X| |X| |X| --
(1) Diversified fund. (2) Non-diversified fund. 83 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) MARCH 31, 2008 (UNAUDITED) 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 and International 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 made within one year following purchases on which a finder's fee has been paid with the exception of the Money Market Fund. 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. Class I shares are sold without a sales charge. 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. 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 Funds 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 March 31, 2008, the total value of these securities represented approximately 3% and 6%, respectively, of the net assets of the Multi-Sector Fixed Income Fund and the Senior Floating Rate 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. The Funds will be adopting SFAS 157 effective with the December 31, 2008 quarterly reporting of the schedules of investments. In March 2008, Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("FAS 161") was issued and is effective for fiscal years and interim periods beginning after November 15, 2008. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why a fund uses derivatives, how derivatives are accounted for, and how derivative instruments affect a fund's results of operations and financial position. Management is currently evaluating the impact of FAS 161 on financial statement disclosures, if any. 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 84 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) MARCH 31, 2008 (UNAUDITED) 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. FASB Interpretation No. 48, ("FIN 48") Accounting for Uncertainty in Income Taxes, sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has analyzed the Fund's tax positions and has concluded that no provision for income tax is required in the Fund's financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. However, management's conclusions regarding the adoption of FIN 48 may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance from the FASB, new tax laws, regulations and administrative interpretations (including court decisions). Each of the Fund's federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. 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 Funds of Funds indirectly bear the Fund's pro-rata expenses of the underlying mutual funds in which each Fund invests. 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. 85 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) MARCH 31, 2008 (UNAUDITED) 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. At March 31, 2008, the value of securities sold short in the Market Neutral Fund amounted to $82,871 (reported in 000s) against which collateral of $166,503 (reported in 000s) 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 or securities issued or guaranteed by the U.S. Government or its agencies. Cash collateral is invested in 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 March 31, 2008, the following Fund had securities on loan as follows (reported in 000s):
MARKET CASH FUND VALUE COLLATERAL ---- ------ ---------- Worldwide Strategies Fund ..... $9,388 $9,824
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. 86 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) MARCH 31, 2008 (UNAUDITED) 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 of the following Funds.
1ST $1+ BILLION -$2 $2+ BILLION BILLION BILLION ------- --------------- -------- Global Utilities Fund................ 0.65% 0.60% 0.55% International Real Estate Securities Fund................... 1.00% 0.95% 0.90% CA Tax-Exempt Bond Fund.............. 0.45% 0.40% 0.35% Core Bond Fund....................... 0.45% 0.40% 0.35% 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% Senior Floating Rate Fund............ 0.60% 0.55% 0.50% International Strategies Fund........ 0.85% 0.80% 0.75% Worldwide Strategies Fund............ 0.85% 0.80% 0.75%
For the Funds shown below the individual rates are as follows: Market Neutral Fund.................. 1.50% Diversifier 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 each Fund's total operating expenses (excluding, interest, taxes, and extraordinary expenses), so that such expenses do not exceed the following percentages of the average daily net assets of each Fund:
CLASS A CLASS B CLASS C CLASS I --------- -------- ------- ------- Global Utilities Fund...... 1.15% -- 1.90% -- Market Neutral Fund*....... 1.77% 2.52% 2.52% -- Diversifier PHOLIO**....... 0.20% -- 0.20% -- Wealth Accumulator PHOLIO**................ 0.20% -- 0.20% -- Wealth Builder PHOLIO**.... 0.20% -- 0.20% -- Wealth Guardian PHOLIO**... 0.20% -- 0.20% -- Bond Fund.................. 1.15% 1.90% 1.90% 0.90% CA Tax-Exempt Bond Fund.... 0.85% -- -- 0.60% Core Bond Fund............. 1.00% 1.75% 1.75% --
* Excluding dividends on short sales. ** Excluding 12b-1 fees and acquired fund fees and expenses. The Adviser has contractually agreed to limit the below listed Funds total operating expenses (excluding interest, taxes, and extraordinary expenses) through January 31, 2009 so that such expenses do not exceed the following percentages of the average daily net assets of each Fund:
CLASS A CLASS C CLASS I ------- ------ ------- International Real Estate Securities Fund................... 1.50% 2.25% 1.25% Senior Floating Rate Fund............ 1.20% 1.95% 0.95%
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 through September 30, 2007 may be recaptured by the fiscal year ended 2010 (reported in 000s): 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
The subadvisers to the funds are as follows:
FUND SUBADVISER ----------------------- ------------------------------------------------- Global Utilities Fund... Duff & Phelps Investment Management Co. ("DPIM") International Real Estate Securities Fund...... Duff & Phelps Investment Management Co. ("DPIM") Market Neutral Fund..... The Boston Company Asset Management LLC ("TBCAM") 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 ("SCM") CA Tax-Exempt Bond Fund................. Goodwin Capital Advisers, Inc. ("Goodwin") Core Bond Fund.......... Goodwin Capital Advisers, Inc. ("Goodwin") High Yield Fund......... SCM Advisors LLC ("SCM") Money Market Fund....... Goodwin Capital Advisers, Inc. ("Goodwin") Multi-Sector Fixed Income Fund.......... Goodwin Capital Advisers, Inc. ("Goodwin") Senior Floating Rate 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")
DPIM, GOODWIN, AND SCM ARE INDIRECT, WHOLLY-OWNED SUBSIDIARIES OF PNX. (1) AS OF JANUARY 10, 2008, TBCAM IS THE SUBADVISER TO THE FUND. FOR THE PERIOD OCTOBER 1, 2007 THROUGH JANUARY 9, 2008, EUCLID ADVISORS LLC ("EUCLID") SERVED AS THE SUBADVISER. 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. 87 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) MARCH 31, 2008 (UNAUDITED) 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 March 31, 2008, as follows (reported in 000s):
CLASS A CLASS B CLASS C NET DEFERRED DEFERRED SELLING SALES SALES COMMISSIONS CHARGES CHARGES ----------- ---------- -------- Global Utilities Fund....................... $ 4 $ -- $ -- (1) International Real Estate Securities Fund Market Neutral Fund......... -- (1) 11 -- (1) Diversifier PHOLIO.......... 89 -- 25 Wealth Accumulator PHOLIO..................... 3 -- -- (1) Wealth Builder PHOLIO....... 9 -- 5 Wealth Guardian PHOLIO..................... 3 -- 1 Bond Fund................... 1 1 -- CA Tax-Exempt Bond Fund -- (1) -- -- Core Bond Fund.............. 2 2 -- High Yield Fund............. 3 2 1 Multi-Sector Fixed Income Fund....................... 6 4 2 International Strategies Fund....................... 3 4 -- (1) Worldwide Strategies Fund....................... 1 5 -- (1)
(1) Amount is less than $500. 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% International Real Estate Securities Fund................... 0.25% -- 1.00% Market Neutral Fund.................. 0.25% 1.00% 1.00% Diversifier PHOLIO................... 0.04% -- 0.79% 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% High Yield Fund...................... 0.25% 1.00% 1.00% Multi-Sector Fixed Income Fund.............................. 0.25% 1.00% 1.00% Senior Floating Rate Fund............ 0.25% -- 1.00% International Strategies Fund........ 0.25% 1.00% 1.00% Worldwide Strategies Fund............ 0.25% 1.00% 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 Funds of Funds ("PHOLIOs") 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. The net amounts are shown in the above table. 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 include 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 March 31, 2008, the Trust incurred administration fees totaling $535 (reported in 000s). PEPCO serves as the Trust's transfer agent with Boston Financial Data Services, Inc. serving as sub-transfer agent. For the period ended March 31, 2008, transfer agent fees were $983 (reported in 000s) as reported in the Statements of Operations. At March 31, 2008, PNX and its affiliates and Phoenix affiliated Funds held shares which aggregated the following (reported in 000s):
AGGREGATE NET ASSET SHARES VALUE ------ ----------- Global Utilities Fund, Class A................................... 3,807 $ 48,461 Class C................................... 11 143 International Real Estate Securities Fund, Class A................................... 1,270 11,014 Class C................................... 10 88 Class I................................... 10 88 Market Neutral Fund, Class A................. 7,346 75,292 Diversifier PHOLIO, Class C.................. 10 118 Bond Fund, Class A........................... 1,812 18,613 Core Bond Fund, Class C...................... -- (2) -- (1) Money Market Fund, Class A................... 41 41 Senior Floating Rate Fund, Class A................................... 1,472 14,607 Class C................................... 20 200 Class I................................... 20 200 International Strategies Fund, Class A................................... 1,247 16,869
(1) Amount is less than $500. (2) Shares less than 500. 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 March 31, 2008. 88 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) MARCH 31, 2008 (UNAUDITED) 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 March 31, 2008, were as follows:
LONG TERM (NON-GOVERNMENT) (REPORTED IN 000S) ------------------------------- PURCHASES SALES ---------- -------- Global Utilities Fund............. $ 17,621 $ 14,093 International Real Estate Securities Fund................ 13,116 448 Market Neutral Fund............... 235,043 232,380 Diversifier PHOLIO................ 97,654 25,819 Wealth Accumulator PHOLIO......... 2,342 1,975 Wealth Builder PHOLIO............. 11,638 17,787 Wealth Guardian PHOLIO............ 7,507 8,613 Bond Fund......................... 11,095 20,971 CA Tax-Exempt Bond................ 4,641 2,956 Core Bond Fund.................... 8,483 7,713
LONG TERM (NON-GOVERNMENT) (REPORTED IN 000S) ------------------------------- PURCHASES SALES ---------- -------- High Yield Fund .................. $49,365 $57,739 Multi-Sector Fixed Income ........ 47,786 40,936 Senior Floating Rate Fund ........ 14,980 720 International Strategies Fund .... 35,237 39,863 Worldwide Strategies Fund ........ 35,377 41,555
Purchases and sales of long term U.S. Government and agency securities for the Funds during the period ended March 31, 2008, were as follows:
LONG TERM GOVERNMENT SECURITIES (REPORTED IN 000S) ------------------------------- PURCHASES SALES ---------- -------- Bond Fund ........................ $51,265 $55,304 Core Bond Fund ................... 3,017 5,678 Multi-Sector Fixed Income ........ 21,870 33,095
5. CAPITAL SHARES Transactions (reported in 000s) in shares of capital stock during the periods ended as indicated below were as follows:
----------------------- ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT --------- ----------- ---------- ----------- ---------- ----------- --------------------- ----------------------- ------------------------ ------------------------ 10/1/07 - 5/1/07 - 5/1/06 - GLOBAL UTILITIES FUND 3/31/08 9/30/07 4/30/07 --------------------- ----------------------- ------------------------ ------------------------ CLASS A Shares sold 1,138 $ 15,572 1,186 $ 16,030 2,533 $ 31,313 Reinvestment of distributions 201 2,790 120 1,595 67 780 Redemptions (912) (12,312) (821) (10,721) (203) (2,538) --------- ----------- ---------- ----------- ---------- ----------- Net increase / (decrease) 427 $ 6,050 485 $ 6,904 2,397 $ 29,555 ========= =========== ========== =========== ========== =========== CLASS C Shares sold 40 $ 538 20 $ 262 52 $ 649 Reinvestment of distributions 6 80 3 36 3 29 Redemptions (7) (94) (9) (114) (30) (366) --------- ----------- ---------- ----------- ---------- ----------- Net increase / (decrease) 39 $ 524 14 $ 184 25 $ 312 ========= =========== ========== =========== ========== ===========
------------------------------ ---------------------- INTERNATIONAL REAL ESTATE 10/1/07 - SECURITIES FUND 3/31/08 ------------------------------ ---------------------- CLASS A Shares sold 1,320 $ 12,973 Reinvestment of distributions 20 175 Redemptions (43) (376) -------- ----------- Net increase / (decrease) 1,297 $ 12,772 ======== =========== CLASS C Shares sold 25 $ 243 Reinvestment of distributions -- ** 2 Redemptions -- -- -------- ----------- Net increase / (decrease) 25 $ 245 ======== =========== CLASS I Shares sold 10 $ 100 Reinvestment of distributions -- ** 1 Redemptions -- -- -------- ----------- Net increase / (decrease) 10 $ 101 ======== ===========
89 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) MARCH 31, 2008 (UNAUDITED)
--------------------- ----------------------- ---------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------- ----------- --------- ----------- --------- ---------- ------------------- --------------------- ----------------------- ---------------------- 10/1/07 - 11/1/06 - 11/1/05 - MARKET NEUTRAL FUND 3/31/08 9/30/07 10/31/06 ------------------- --------------------- ----------------------- ---------------------- CLASS A Shares sold 3,693 $ 38,070 3,427 $ 37,237 5,692 $ 65,052 Reinvestment of distributions 86 895 88 950 -- -- Redemptions (522) (5,462) (6,286) (68,728) (7,093) (81,002) ------- ----------- --------- ----------- --------- ---------- Net increase / (decrease) 3,257 $ 33,503 (2,771) $ (30,541) (1,401) $ (15,950) ======= =========== ========= =========== ========= ========== CLASS B Shares sold 8 $ 81 21 $ 222 41 $ 452 Reinvestment of distributions 2 18 4 45 -- -- Redemptions (67) (675) (166) (1,732) (320) (3,550) ------- ----------- --------- ----------- --------- ---------- - Net increase / (decrease) (57) $ (576) (141) $ (1,465) (279) $ (3,098) ======= =========== ========= =========== ========= ========== CLASS C Shares sold 41 $ 409 33 $ 350 252 $ 2,814 Reinvestment of distributions 5 45 16 173 -- -- Redemptions (159) (1,599) (1,049) (10,949) (2,073) (22,745) ------- ----------- --------- ----------- --------- ---------- Net increase / (decrease) (113) $ (1,145) (1,000) $ (10,426) (1,821) $ (19,931) ======= =========== ========= =========== ========= ========== ------------------ --------------------- ----------------------- ---------------------- 10/1/07 - 8/1/07 - 8/1/06 - DIVERSIFIER PHOLIO 3/31/08 9/30/07 7/31/07 ------------------ --------------------- ----------------------- ---------------------- CLASS A Shares sold 5,654 $ 65,868 1,208 $ 13,656 8,790 $ 99,697 Reinvestment of distributions 51 609 36 420 41 460 Redemptions (1,541) (17,859) (498) (5,615) (405) (4,654) ------- ----------- --------- ----------- --------- ---------- Net increase / (decrease) 4,164 $ 48,618 746 $ 8,461 8,426 $ 95,503 ======= =========== ========= =========== ========= ========== CLASS C Shares sold 2,386 $ 27,575 528 $ 5,893 5,586 $ 62,713 Reinvestment of distributions 26 300 13 150 10 106 Redemptions (725) (8,378) (182) (2,048) (168) (1,912) ------- ----------- --------- ----------- --------- ---------- Net increase / (decrease) 1,687 $ 19,497 359 $ 3,995 5,428 $ 60,907 ======= =========== ========= =========== ========= ========== ------------------------- --------------------- ----------------------- ---------------------- 10/1/07 - 8/1/07 - 8/1/06 - WEALTH ACCUMULATOR PHOLIO 3/31/08 9/30/07 7/31/07 ------------------------- --------------------- ----------------------- ---------------------- CLASS A Shares sold 111 $ 1,322 51 $ 612 472 $ 5,599 Reinvestment of distributions 13 156 9 112 17 197 Redemptions (113) (1,379) (17) (205) (64) (735) ------- ----------- --------- ----------- --------- ---------- Net increase / (decrease) 11 $ 99 43 $ 519 425 $ 5,061 ======= =========== ========= =========== ========= ========== CLASS C Shares sold 42 $ 498 54 $ 659 162 $ 1,863 Reinvestment of distributions 4 48 3 38 6 73 Redemptions (33) (389) (15) (175) (75) (888) ------- ----------- --------- ----------- --------- ---------- Net increase / (decrease) 13 $ 157 42 $ 522 93 $ 1,048 ======= =========== ========= =========== ========= ========== --------------------- --------------------- ----------------------- ---------------------- 10/1/07 - 8/1/07 - 8/1/06 - WEALTH BUILDER PHOLIO 3/31/08 9/30/07 7/31/07 --------------------- --------------------- ----------------------- ---------------------- CLASS A Shares sold 318 $ 3,908 122 $ 1,566 919 $ 11,761 Reinvestment of distributions 145 1,808 169 2,168 201 2,528 Redemptions (591) (7,235) (116) (1,501) (1,071) (13,740) ------- ----------- --------- ----------- --------- ---------- Net increase / (decrease) (128) $ (1,519) 175 $ 2,233 49 $ 549 ======= =========== ========= =========== ========= ========== CLASS C Shares sold 102 $ 1,155 218 $ 2,774 734 $ 9,313 Reinvestment of distributions 216 2,716 123 1,566 215 2,681 Redemptions (749) (9,036) (197) (2,542) (1,384) (17,498) ------- ----------- --------- ----------- --------- ---------- Net increase / (decrease) (431) $ (5,165) 144 $ 1,798 (435) $ (5,504) ======= =========== ========= =========== ========= ==========
90 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) MARCH 31, 2008 (UNAUDITED)
----------------------- --------------------- -------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT --------- ---------- ------- ---------- -------- ---------- ---------------------- ----------------------- --------------------- -------------------- 10/1/07 - 8/1/07 - 8/1/06 - WEALTH GUARDIAN PHOLIO 3/31/08 9/30/07 7/31/07 ---------------------- ----------------------- --------------------- -------------------- CLASS A Shares sold 384 $ 4,513 67 $ 802 617 $ 7,397 Reinvestment of distributions 54 637 71 848 93 1,102 Redemptions (418) (4,857) (101) (1,196) (461) (5,500) --------- ---------- ------- ---------- -------- ---------- Net increase / (decrease) 20 $ 293 37 $ 454 249 $ 2,999 ========= ========== ======= ========== ======== ========== CLASS C Shares sold 110 $ 1,268 79 $ 938 295 $ 3,491 Reinvestment of distributions 20 235 33 393 41 485 Redemptions (323) (3,713) (104) (1,246) (635) (7,500) --------- ---------- ------- ---------- -------- ---------- Net increase / (decrease) (193) $ (2,210) 8 $ 85 (299) $ (3,524) ========= ========== ======= ========== ======== ========== --------- ----------------------- --------------------- 10/1/07 - 10/1/06 - BOND FUND 3/31/08 9/30/07 --------- ----------------------- --------------------- CLASS A Shares sold 258 $ 2,681 425 $ 4,351 Reinvestment of distributions 56 578 112 1,143 Plan of Reorganization -- -- -- -- Redemptions (431) (4,463) (420) (4,310) --------- ---------- ------- ---------- Net increase / (decrease) (117) $ (1,204) 117 $ 1,184 ========= ========== ======= ========== CLASS B Shares sold 70 $ 710 25 $ 256 Reinvestment of distributions 6 56 12 120 Plan of Reorganization -- -- -- -- Redemptions (59) (594) (150) (1,513) --------- ---------- ------- ---------- Net increase / (decrease) 17 $ 172 (113) $ (1,137) ========= ========== ======= ========== CLASS C Shares sold 215 $ 2,187 74 $ 746 Reinvestment of distributions 3 28 4 41 Plan of Reorganization -- -- -- -- Redemptions (106) (1,087) (64) (647) --------- ---------- ------- ---------- Net increase / (decrease) 112 $ 1,128 14 $ 140 ========= ========== ======= ========== CLASS I Shares sold 167 $ 1,748 442 $ 4,581 Reinvestment of distributions 70 732 184 1,899 Plan of Reorganization -- -- -- -- Redemptions (1,715) (17,786) (1,675) (17,320) --------- ---------- ------- ---------- Net increase / (decrease) (1,478) $ (15,306) (1,049) $ (10,840) ========= ========== ======= ========== ----------------------- ----------------------- --------------------- -------------------- 10/1/07 - 5/1/07 - 5/1/06 - CA TAX-EXEMPT BOND FUND 3/31/08 9/30/07 4/30/07 ----------------------- ----------------------- --------------------- -------------------- CLASS A Shares sold 26 $ 319 10 $ 122 55 $ 680 Reinvestment of distributions 34 410 30 362 94 1,161 Plan of Reorganization -- -- -- -- 6 72 (Note 11) Redemptions (133) (1,623) (253) (3,037) (499) (6,124) --------- ---------- ------- ---------- ----- -------- Net increase / (decrease) (73) $ (894) (213) $ (2,553) (344) $ (4,211) ========= ========== ======= ========== ===== ======== CLASS B Shares sold -- $ -- -- $ -- -- ** $ -- ++ Reinvestment of distributions -- -- -- -- -- ** -- ++ Plan of Reorganization -- -- -- -- (6) (72) (Note 11) Redemptions -- -- -- -- (7) (84) --------- ---------- ------- ---------- ---- -------- Net increase / (decrease) -- $ -- -- $ -- (13) $ (156) ========= ========== ======= ========== ===== ======== CLASS I+ Shares sold 388 $ 4,730 57 $ 684 130 $ 1,489 Reinvestment of distributions 19 233 15 183 27 328 Plan of Reorganization (Note -- -- -- -- 2,503 31,008 11) Redemptions (208) (2,514) (95) (1,129) (296) (3,526) --------- ---------- ------- ---------- ----- -------- Net increase / (decrease) 199 $ 2,449 (23) $ (262) 2,364 $ 29,299 ========= ========== ======= ========== ===== ========
91 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) MARCH 31, 2008 (UNAUDITED)
--------------------- --------------------- --------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------- ----------- ------- ---------- ------- ----------- -------------- --------------------- --------------------- --------------------- 10/1/07 - 11/1/06 - 11/1/05 - CORE BOND FUND 3/31/08 9/30/07 10/31/06 -------------- --------------------- --------------------- --------------------- CLASS A Shares sold 132 $ 1,112 190 $ 1,588 201 $ 1,657 Reinvestment of distributions 118 983 233 1,936 278 2,272 Redemptions (469) (3,926) (1,014) (8,437) (1,726) (14,118) ------- ----------- ------- ---------- ------- ----------- Net increase / (decrease) (219) $ (1,831) (591) $ (4,913) (1,247) $ (10,189) ======= =========== ======= ========== ======= =========== CLASS B Shares sold 46 $ 382 125 $ 1,027 98 $ 805 Reinvestment of distributions 3 24 6 49 9 73 Redemptions (59) (495) (150) (1,237) (184) (1,494) ------- ----------- ------- ---------- ------- ----------- Net increase / (decrease) (10) $ (89) (19) $ (161) (77) $ (616) ======= =========== ======= ========== ======= =========== CLASS C Shares sold 62 $ 521 50 $ 411 24 $ 197 Reinvestment of distributions 2 21 4 36 5 38 Redemptions (23) (195) (64) (534) (25) (204) ------- ----------- ------- ---------- ------- ----------- Net increase / (decrease) 41 $ 347 (10) $ (87) 4 $ 31 ======= =========== ======= ========== ======= =========== --------------- --------------------- --------------------- --------------------- 10/1/07 - 11/1/06 - 11/1/05 - HIGH YIELD FUND 3/31/08 9/30/07 10/31/06 --------------- --------------------- --------------------- --------------------- CLASS A Shares sold 519 $ 2,418 2,256 $ 11,148 2,756 $ 13,448 Reinvestment of distributions 620 2,871 1,069 5,289 1,202 5,866 Redemptions (2,621) (12,320) (4,664) (23,146) (6,555) (32,087) ------- ----------- ------- ---------- ------- ----------- Net increase / (decrease) (1,482) $ (7,031) (1,339) $ (6,709) (2,597) $ (12,773) ======= =========== ======= ========== ======= =========== CLASS B Shares sold 18 $ 82 73 $ 352 211 $ 1,014 Reinvestment of distributions 8 39 21 101 33 156 Redemptions (166) (777) (503) (2,458) (914) (4,422) ------- ----------- ------- ---------- ------- ----------- Net increase / (decrease) (140) $ (656) (409) $ (2,005) (670) $ (3,252) ======= =========== ======= ========== ======= =========== CLASS C Shares sold 19 $ 88 214 $ 1,057 125 $ 604 Reinvestment of distributions 7 34 11 55 10 50 Redemptions (84) (389) (121) (597) (173) (841) ------- ----------- ------- ---------- ------- ----------- Net increase / (decrease) (58) $ (267) 104 $ 515 (38) $ (187) ======= =========== ======= ========== ======= =========== ----------------- --------------------- --------------------- --------------------- 10/1/07 - 11/1/06 - 11/1/05 - MONEY MARKET FUND 3/31/08 9/30/07 10/31/06 ----------------- --------------------- --------------------- --------------------- CLASS A Shares sold 42,262 $ 42,262 67,326 $ 67,326 95,573 $ 95,573 Reinvestment of distributions 1,737 1,737 3,761 3,761 3,923 3,923 Redemptions (40,643) (40,643) (74,042) (74,042) (111,112) (111,112) ------- ----------- ------- ---------- ------- ----------- Net increase / (decrease) 3,356 $ 3,356 (2,955) $ (2,955) (11,616) $ (11,616) ======= =========== ======= ========== ======= =========== ------------------------------ --------------------- --------------------- --------------------- 10/1/07 - 11/1/06 - 11/1/05 - MULTI-SECTOR FIXED INCOME FUND 3/31/08 9/30/07 10/31/06 ------------------------------ --------------------- --------------------- --------------------- CLASS A Shares sold 651 $ 6,984 1,894 $ 20,760 1,911 $ 20,550 Reinvestment of distributions 199 2,115 321 3,523 351 3,769 Redemptions (1,232) (13,155) (2,217) (24,261) (2,559) (27,444) ------- ----------- ------- ---------- ------- ----------- Net increase / (decrease) (382) $ (4,056) (2) $ 22 (297) $ (3,125) ======= =========== ======= ========== ======= =========== CLASS B Shares sold 89 $ 948 210 $ 2,306 267 $ 2,866 Reinvestment of distributions 20 217 31 337 36 388 Redemptions (97) (1,036) (237) (2,592) (592) (6,341) ------- ----------- ------- ---------- ------- ----------- Net increase / (decrease) 12 $ 129 4 $ 51 (289) $ (3,087) ======= =========== ======= ========== ======= =========== CLASS C Shares sold 271 $ 2,907 703 $ 7,777 572 $ 6,172 Reinvestment of distributions 34 362 50 544 42 452 Redemptions (346) (3,707) (439) (4,835) (460) (4,958) ------- ----------- ------- ---------- ------- ----------- Net increase / (decrease) (41) $ (438) 314 $ 3,486 154 $ 1,666 ======= =========== ======= ========== ======= ===========
92 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) MARCH 31, 2008 (UNAUDITED)
--------------------- --------------------- --------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------- ---------- ------- ----------- ------- ----------- ------------------------- --------------------- 1/31/08 - SENIOR FLOATING RATE FUND 3/31/08 ------------------------- --------------------- CLASS A Shares sold 1,461 $ 14,606 Reinvestment of distributions 12 123 Redemptions -- -- ------- ---------- Net increase / (decrease) 1,473 $ 14,729 ======= ========== CLASS C Shares sold 20 $ 200 Reinvestment of distributions -- 1 Redemptions -- -- ------- ---------- Net increase / (decrease) 20 $ 201 ======= ========== CLASS I Shares sold 20 $ 200 Reinvestment of distributions -- 2 Redemptions -- -- ------- ---------- Net increase / (decrease) 20 $ 202 ======= ========== ------------------------------ --------------------- --------------------- ---------------------- 10/1/07 - 12/1/06 - 12/1/05 - INTERNATIONAL STRATEGIES FUND 3/31/08 9/30/07 11/30/06 ------------------------------ --------------------- --------------------- ---------------------- CLASS A Shares sold 336 $ 4,858 869 $ 12,710 1,119 $ 13,641 Reinvestment of distributions 35 510 76 1,092 92 1,059 Redemptions (597) (8,628) (1,024) (15,132) (1,628) (20,169) ------- ---------- ------- ----------- ------- ----------- Net increase / (decrease) (226) $ (3,260) (79) $ (1,330) (417) $ (5,469) ======= ========== ======= =========== ======== =========== CLASS B Shares sold 25 $ 338 110 $ 1,504 159 $ 1,784 Reinvestment of distributions 2 29 4 51 3 29 Redemptions (120) (1,614) (182) (2,427) (239) (2,738) ------- ---------- ------- ----------- ------- ----------- Net increase / (decrease) (93) $ (1,247) (68) $ (872) (77) $ (925) ======= ========== ======= =========== ======== =========== CLASS C Shares sold 23 $ 313 37 $ 507 65 $ 736 Reinvestment of distributions 1 13 1 19 1 8 Redemptions (31) (403) (50) (684) (37) (413) ------- ---------- ------- ----------- ------- ----------- Net increase / (decrease) (7) $ (77) (12) $ (158) 29 $ 331 ======= ========== ======= =========== ======== =========== ------------------------- --------------------- --------------------- ---------------------- 10/1/07 - 7/1/07 - 7/1/06 - WORLDWIDE STRATEGIES FUND 3/31/08 9/30/07 6/30/07 ------------------------- --------------------- --------------------- ---------------------- CLASS A Shares sold 135 $ 1,462 63 $ 768 323 $ 3,514 Reinvestment of distributions 203 2,164 598 6,814 102 1,120 Redemptions (636) (6,795) (252) (3,000) (1,165) (12,702) ------- ---------- ------- ----------- ------- ----------- Net increase / (decrease) (298) $ (3,169) 409 $ 4,582 (740) $ (8,068) ======= ========== ======= =========== ======== =========== CLASS B Shares sold 36 $ 357 34 $ 373 90 $ 906 Reinvestment of distributions 9 88 30 307 3 30 Redemptions (130) (1,268) (51) (551) (234) (2,327) ------- ---------- ------- ----------- ------- ----------- Net increase / (decrease) (85) $ (823) 13 $ 129 (141) $ (1,391) ======= ========== ======= =========== ======== =========== CLASS C Shares sold 23 $ 231 5 $ 53 16 $ 160 Reinvestment of distributions 3 33 10 106 1 9 Redemptions (28) (265) (4) (48) (166) (1,484) ------- ---------- ------- ----------- ------- ----------- Net increase / (decrease) (2) $ (1) 11 $ 111 (149) $ (1,315) ======= ========== ======= =========== ======== ===========
+ Inception date for Class I is 9/29/06. ++ Amount is less than $500. ** Shares less than 500. 93 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) MARCH 31, 2008 (UNAUDITED) 6. 10% SHAREHOLDERS As of March 31, 2008, certain Funds had individual shareholder accounts and/or omnibus shareholder accounts (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 .................. 68% 2 International Real Estate Securities Securities Fund ..................... 90% 3 Market Neutral Fund .................... 64% 1 Diversifier PHOLIO ..................... 36% 2 Wealth Accumulator PHOLIO .............. 24% 2 Wealth Builder PHOLIO .................. 31% 1 Wealth Guardian PHOLIO ................. 30% 1 Bond Fund .............................. 26% 2 CA Tax-Exempt Bond Fund ................ 26% 2 Senior Floating Rate Fund .............. 97% 1 International Strategies Fund .......... 13% 1
The total of affiliated shareholder accounts reported above is ten and the remaining eight accounts are non-affiliated. The Funds 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 March 31, 2008, 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 ................... 13% 13% -- Phoenix Global Utilities Fund--Class A ................... -- -- 57% Phoenix Growth Opportunities Fund--Class A ................... 15% -- -- Phoenix Market Neutral Fund--Class A ................... -- -- 65% Phoenix Institutional Bond Fund--Class Y ................... 10% -- -- Phoenix International Real Estate Fund--Class A ............ 42% 12% -- Phoenix International Strategies Fund--Class A ........ 13% -- -- Phoenix Small-Cap Sustainable Growth Fund--Class A ................... 15% -- -- Phoenix Value Opportunities Fund--Class A ................... 11% -- --
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 March 31, 2008, the Funds held the following illiquid and restricted securities (reported in 000s):
MARKET % OF VALUE NET ACQUISITION ACQUISITION AT ASSETS DATE COST 3/31/08 AT 3/31/08 ----------- ---------- ---------- ---------- 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 -------------- Greenwich Structured ARM Products 05-5A, N2 144A 6.611% due 9/27/45 2/28/06 $ 316 $ 296 0.5% MASTR Resecuritization Trust 05-4CI, N2 144A 5.606% due 4/26/45 11/12/06 $ 170 $ 68 0.1% High Yield Fund --------------- CB Cambridge Industries Liquidating Trust Interests 0%, 12/24/05 12/24/01 $ 369 $ 6 0.0% Poland Telecom Finance BV Series B 14%, 12/1/07 11/24/97 $ 5,000 $ 62 0.1% ACG Holdings, Inc. 12/4/93 $ 358 $ -- 0.0% Multi-Sector Fixed Income Fund ------------------------------ MASTR Alternative Net Interest Margin 06-6 N1 144A 3.606%, 9/26/46 8/3/06 $ 91 $ 4 0.0% Northampton Pulp LLC 12/30/99 $ 349 -- 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. 94 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) MARCH 31, 2008 (UNAUDITED) 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 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. 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. 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 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 this matter will be material to these financial statements. 11. PLANS OF REORGANIZATION (All values except for per share amounts are reported in 000s) 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. Effective September 28, 2006, the CA Tax-Exempt Bond Fund's Class B shares were converted to Class A shares at their net asset value. Class B shares have ceased to exist and are no longer available for sale. 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 2,503 Class I shares (f/k/a Class X) of the CA Tax-Exempt Bond Fund outstanding on October 6, 2006 (valued at $31,008) for 2,950 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 $31,008 including $263 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. 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. Effective March 10, 2008 the Phoenix Growth Opportunities Fund, a former series of Phoenix Opportunities Trust ("Predecessor Fund"), has been reorganized into a fund named Phoenix Growth Opportunities Fund, a series of Phoenix Equity Trust ("Successor Fund"). The Successor Fund's principal investment strategies, risks, fees and expenses, and portfolio management are the same as those of its Predecessor Fund and remain unchanged. 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. 95 PHOENIX OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) MARCH 31, 2008 (UNAUDITED) 13. FEDERAL INCOME TAX INFORMATION (amounts reported in 000s) 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 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
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. 14. OTHER On February 7, 2008, PNX announced that it intends to spin off its asset management subsidiary ("spin-off"), Phoenix Investment Partners, Ltd. ("PXP"), to PNX' shareholders. The Fund's Administrator and Transfer Agent PEPCO, a subsidiary of PXP, and the Fund's Adviser, PIC, also a subsidiary of PXP, are also intended to be part of the spin-off. 15. SUBSEQUENT EVENT The Board of Trustees of the Phoenix Insight Funds Trust (the "Board"), on behalf of the Phoenix Insight Bond Fund, has unanimously approved the merger of the Phoenix Insight Bond Fund with and into the Phoenix Bond Fund, a series of the Phoenix Opportunities Trust. The merger will take place on May 16, 2008. 96 CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES (UNAUDITED) The Board of Trustees of the Trust, along with the Boards of Trustees of the other trusts in the Phoenix family of funds (collectively, the "Board"), is responsible for determining whether to approve the entering into and continuation of each investment advisory and subadvisory agreement (each, an "Agreement") for the Phoenix funds (collectively, the "Funds"). At meetings held on November 13-16, 2007, the Board, including a majority of the Trustees who are not interested persons as defined in Section 2(a)(19) of the Investment Company Act of 1940, considered and approved the continuation of each Agreement, as further discussed below. In approving each Agreement, the Board determined that the continued retention of the applicable adviser or subadviser was in the best interests of each Fund and its shareholders. The Trustees considered each Fund separately, although they also collectively took into account those interests that all the Funds had in common. In reaching their decisions, the Board considered information furnished throughout the year at regular Board meetings as well as information prepared specifically in connection with the annual review process. During the review process, the Board received assistance and advice from and met separately with independent legal counsel. The Board's determination contemplated a number of factors that the Trustees believed to be relevant. Some of the factors that the Board considered are described below, although the Trustees did not identify any particular information or factor as controlling, but, instead, the Board considered the Agreements in the totality of the circumstances. Each individual Trustee may have evaluated the information presented differently, giving different weights to different factors. NATURE, EXTENT AND QUALITY OF SERVICES. The majority of the Funds (1) are managed using a "manager of managers" structure that generally involves the use of one or more subadvisers to manage some or all of a Fund's portfolio. Under this structure, Phoenix Investment Counsel, Inc. ("PIC") is responsible for evaluating and selecting subadvisers on an ongoing basis and for making any recommendations to the Board regarding hiring, retaining or replacing subadvisers. In considering the Agreement with PIC, therefore, the Trustees considered PIC's process for supervising and managing the Funds' subadvisers, including (a) PIC's ability to select and monitor the subadvisers; (b) PIC's ability to provide the services necessary to monitor the subadvisers' compliance with the Funds' respective investment objectives, policies and restrictions as well as provide other oversight activities; and (c) PIC's ability and willingness to identify instances in which a subadviser should be replaced and to carry out the required changes. The Trustees also considered: (d) the experience, capability and integrity of PIC's management and other personnel; (e) the financial position of PIC; (f) the quality of PIC's own regulatory and legal compliance policies, procedures and systems; (g) the nature, extent and quality of administrative and other services provided by PIC to the Funds; and (h) PIC's supervision of the Funds' other service providers. Finally, the Board also noted the extent of benefits that are provided to Fund shareholders as a result of being part of the Phoenix family of Funds, including the right to exchange investments between the same class of Funds without a sales charge, the ability to reinvest Fund dividends into other Funds and the right to combine holdings in other Funds to obtain a reduced sales charge. With respect to the subadvisory Agreements, the Board noted that each subadviser provided information with respect to portfolio management, compliance with the respective Fund's investment policies and procedures, and compliance with applicable securities laws and assurances thereof. In considering the renewal of the subadvisory Agreements, the Board considered each subadviser's investment management process, including (a) the experience, capability and integrity of the subadviser's management and other personnel committed by the subadviser to manage its respective Fund(s); (b) the financial position of the subadviser; (c) the quality and commitment of the subadviser's regulatory and legal compliance policies, procedures and systems; and (d) the subadviser's brokerage and trading practices. After considering all of the information provided to them, the Trustees concluded that the nature, extent and quality of the services provided by PIC and each subadviser were reasonable and beneficial to the Funds and their shareholders. INVESTMENT PERFORMANCE. The Board placed significant emphasis on its consideration of the investment performance of the Funds, in view of its importance to shareholders, and the Board evaluated Fund performance in the context of the manager-of-managers structure. The Board also considered that PIC continued to be proactive in seeking to replace and/or add subadvisers as necessary, with a view toward improving Fund performance over the long term. While consideration was given to performance reports and discussions at Board meetings throughout the year, particular attention in assessing performance was given to a report (the "Lipper Report") for the Funds prepared by Lipper Inc. ("Lipper") and furnished specifically for the contract renewal process. Lipper is an independent provider of investment company data. The Lipper Report presented each Fund's short-term and long-term performance relative to a peer group of other mutual funds and benchmarks, as selected by Lipper. The Board considered the composition of each peer group, selection criteria and the appropriateness of the benchmark used for each Fund. The Board also assessed each Fund's performance relative to the fees and expenses of each Fund as well as PIC's profitability. The Board noted that while many of the Funds had generally performed in line with their respective benchmarks and peer groups during the periods measured, some of the Funds had underperformed compared to their respective benchmarks and/or peer groups. The Board noted that certain of the Funds' underperformance was slight. Also, some of the Funds underperforming their benchmarks and/or peer groups for a given period had outperformed such benchmarks and/or peer groups during other periods. Where significant, the Board extensively considered the performance of the underperforming Funds and the reasons for the performance issues. The Board discussed the possible reasons for the underperformance with PIC and spoke with PIC regarding plans to monitor and address performance issues during the coming year. ---------- (1) During the period being reported, the only Fund that did not employ a manager of managers structure was the Phoenix Growth & Income Fund, which is a series of Phoenix Equity Series Fund. PIC acted as the adviser for that Fund without employing a subadviser, which means that PIC provided for that Fund the services that for the other Funds were provided by subadvisers. The Board considered the PIC Agreement with respect to that Fund in that context. 97 CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES (UNAUDITED) (CONTINUED) After considering all of the information presented, the Board ultimately concluded that it should approve the continuation of the Agreements. However, the Board noted that certain Funds' performance would continue to be closely monitored by PIC so that if performance over a longer period of time did not improve, the subadviser would be replaced in a timely manner. PROFITABILITY. The Board also considered the level of profits realized by PIC and its affiliates in connection with the operation of the Funds. In this regard, the Board reviewed the analysis presented by PIC regarding its overall profitability for its management of the Phoenix retail fund family as well as the profits of its affiliates for managing and providing other services to each Fund. In addition to the fees paid to PIC and its affiliates, the Trustees considered any other benefits derived by PIC or its affiliates from their relationship with the Funds. Specific attention was paid to the methodology used to allocate costs to each Fund, in recognition of the fact that allocation methodologies are inherently subjective and various allocation methodologies may each be reasonable while producing different results. In this regard, the Board noted that the allocations appeared reasonable and concluded that the profitability to PIC from each Fund was reasonable in light of the quality of all services rendered to the Funds by PIC and its affiliates. The Board did not separately review profitability information for each subadviser, noting that the subadvisory fees are paid by PIC rather than the Funds. MANAGEMENT FEES AND TOTAL EXPENSES. In evaluating the management fees and total expenses of each Fund, the Board reviewed information provided by PIC and comparisons to other funds in each Fund's peer group as presented in the Lipper Report. The Board noted that several of the Funds had incurred one-time costs related to a shareholder proxy, causing expenses for the period shown to be higher than would be expected in future periods. The Board also noted that certain Funds had higher gross expenses when expressed as a percentage of net assets than those of such Funds' larger peers, which the Trustees considered in the context of the Funds' expectations for future growth. Finally, the Board noted that several of the Funds had fee waivers and/or expense caps in place to limit the total expenses incurred by the Funds and their shareholders. Based upon the information presented by PIC and Lipper, the Trustees determined that the management fees charged by PIC and the total expenses of the Funds were reasonable. The Board did not receive comparative fee information relating specifically to subadvisory fees, in light of the fact that the subadvisory fees are paid by PIC and not by the Funds. ECONOMIES OF SCALE. The Board noted that the management fees for several of the Funds included breakpoints based on assets under management, and fee waivers and/or expense caps were also in place for several of the Funds. The Board determined that PIC and the Funds likely would achieve certain economies of scale, particularly in relationship to certain fixed costs, and shareholders of the Funds would have an opportunity to benefit from these economies of scale. In considering the subadvisory Agreements, the Board also considered the existence of any economies of scale and whether they would be passed along to the Funds' shareholders, but noted that any such economies would likely be generated at the Fund level rather than at the subadviser level. 98 CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS FOR PHOENIX INTERNATIONAL REAL ESTATE SECURITIES FUND (THE "FUND") BY THE BOARD OF TRUSTEES (UNAUDITED) The Board of Trustees of the Phoenix Opportunities Trust (the "Trust"), along with the Boards of Trustees of the other trusts in the Phoenix family of funds (collectively, the "Board"), is responsible for determining whether to approve the entering into and continuation of each investment advisory and subadvisory agreement (each, an "Agreement") for the Phoenix Funds. At a meeting held on May 30, 2007, the Board, including a majority of the Trustees who are not interested persons as defined in Section 2(a)(19) of the Investment Company Act of 1940, considered and approved each Agreement for the Fund, as further discussed below. In approving each Agreement, the Board determined that the retention of the adviser and subadviser was in the best interests of the Fund and its shareholders. In reaching their decisions, the Board considered information for other Phoenix Funds furnished throughout the year at regular Board meetings as well as information prepared specifically in connection with the approval review process. During the approval review process, the Board received assistance and advice from and met separately with independent legal counsel. The Board's determination contemplated a number of factors that the Trustees believed to be relevant. Some of the factors that the Board considered are described below, although the Trustees did not identify any particular information or factor as controlling, but, instead, the Board considered the Agreements in the totality of the circumstances. Each individual Trustee may have evaluated the information presented differently, giving different weights to different factors. NATURE, EXTENT AND QUALITY OF SERVICES. The Fund would be managed using a "manager of managers" structure that generally involves the use of one or more subadvisers to manage some or all of the Fund's portfolio. Under this structure, Phoenix Investment Counsel, Inc. ("PIC") is responsible for evaluating and selecting subadvisers on an ongoing basis and for making any recommendations to the Board regarding hiring, retaining or replacing subadvisers. Therefore, in considering the Agreement with PIC as adviser the Trustees considered PIC's existing process for supervising and managing the other Phoenix Funds subadvisers, including (a) PIC's ability to select and monitor the subadvisers; (b) PIC's ability to provide the services necessary to monitor the subadvisers' compliance with the Funds' respective investment objectives, policies and restrictions as well as provide other oversight activities; and (c) PIC's ability and willingness to identify instances in which a subadviser should be replaced and to carry out the required changes. The Trustees also considered: (d) the experience, capability and integrity of PIC's management and other personnel; (e) the financial position of PIC; (f) the quality of PIC's own regulatory and legal compliance policies, procedures and systems; (g) the nature, extent and quality of administrative and other services provided by PIC to the Phoenix Funds; and (h) PIC's supervision of the Phoenix Funds' other service providers. Finally, the Board also noted the extent of benefits that are provided to Phoenix Fund shareholders as a result of being part of the Phoenix family of funds, including the right to exchange investments between the same class of Phoenix Funds without a sales charge, the ability to reinvest Phoenix Fund dividends into other Phoenix Funds and the right to combine holdings in other Phoenix Funds to obtain a reduced sales charge. With respect to the subadvisory Agreement, the Board noted that Duff & Phelps Investment Management Co. (the "Subadviser") provided information with respect to portfolio management, compliance with the Fund's investment policies and procedures, and compliance with applicable securities laws and assurances thereof. In considering the approval of the subadvisory Agreement, the Board considered the Subadviser's investment management process, including (a) the experience, capability and integrity of the Subadviser's management and other personnel committed by the Subadviser to manage the Fund; (b) the financial position of the Subadviser; (c) the quality and commitment of the Subadviser's regulatory and legal compliance policies, procedures and systems and (d) the Subadviser's brokerage and trading practices. After considering all of the information provided to them, the Trustees concluded that the nature, extent and quality of the services provided by PIC and the Subadviser were reasonable and beneficial to the Fund and its shareholders. INVESTMENT PERFORMANCE. Because the Fund had not commenced operations, the Board could not evaluate prior investment performance for the Fund. However, the Board did review prior performance of a composite of accounts managed by the Subadviser in a similar strategy to the Fund. After considering the information presented, the Board ultimately concluded that it should approve the Agreements. PROFITABILITY. The Board also considered the level of profits realized by PIC and its affiliates in connection with the operation of the Fund. The Trustees considered any other benefits derived by PIC or its affiliates from their relationship with the Fund including the contractual reimbursements that would be provided to the Fund in order to limit the total expenses incurred by the Fund and its shareholders. The Board noted that the profitability appeared reasonable and concluded that the profitability to PIC from the Fund was reasonable in light of the quality of all services rendered to the Fund by PIC and its affiliates. The Board did not separately review profitability information for the Subadviser, noting that the subadvisory fees are paid by PIC rather than by the Fund. MANAGEMENT FEES AND TOTAL EXPENSES. In evaluating the management fees and total expenses of the Fund, the Board reviewed information provided by PIC and comparisons to other funds in the Fund's peer group. The Board also noted the contractual reimbursements that would be provided to the Fund in order to limit the total expenses incurred by the Fund and its shareholders. Based upon the information presented by PIC, the Trustees determined that the management fees charged by PIC and the total expenses of the Fund were reasonable. While the Board acknowledged that the subadvisory fees to be paid would be paid by PIC and not by the Fund, the Board received comparative fee information relating to other funds in the Fund's peer group relative to the subadvisory fees. The Board noted that the subadvisory fees appeared to be reasonable in light of the quality of services to be rendered by the Subadviser. ECONOMIES OF SCALE. The Board noted that the management fees for the Fund included breakpoints based on assets under management, and contractual reimbursements which would also be in place for the Fund. The Board determined that PIC and the Fund likely would achieve certain economies of scale, particularly in relationship to certain fixed costs, and shareholders of the Fund would have an opportunity to benefit from these economies of scale. In considering the subadvisory Agreement, the Board also considered the existence of any economies of scale and whether they would be passed along to the Fund's shareholders, but noted that any such economies would likely be generated at the Fund level rather than at the Subadviser level. 99 CONSIDERATION OF SUBADVISORY AGREEMENT FOR PHOENIX MARKET NEUTRAL FUND (THE "FUND") BY THE BOARD OF TRUSTEES (UNAUDITED) INTRODUCTION The Board, including a majority of the independent Trustees, last renewed the investment advisory agreement (the "Advisory Agreement") between Phoenix Investment Counsel (the "Adviser") and the Fund, and the investment subadvisory agreement between the Adviser and Euclid Advisors LLC ("Euclid"), at a meeting held on November 13-16, 2007. The Board noted, however, that although Euclid was being reapproved as the current subadviser, Management was proposing that The Boston Company Asset Management, LLC ("Boston Company") be appointed as a new subadviser to the Fund, and enter into a new subadvisory agreement (the "Subadvisory Agreement") which, if approved by the Board and shareholders, would be effective in early January, 2008. The Board noted Management's representations that the Fund would benefit from the Boston Company's stronger performance history in its management of similar market neutral strategies to the Fund's. In evaluating the proposal to appoint the Boston Company the Board requested and evaluated information provided by the Adviser and the Boston Company which, in the Board's view, constituted information necessary for the Board to form a judgment as to whether entering into the Subadvisory Agreement with the Boston Company would be in the best interests of the Fund and its shareholders. Prior to making its final decision, the Board met privately with their independent counsel to discuss the information provided. In their deliberations, the Trustees did not identify any particular information that was all-important or controlling, and each Trustee attributed different weights to the various factors. In recommending that shareholders approve this proposal, the Trustees considered various factors, including: 1) the nature, extent and quality of the services to be provided by the Boston Company, with its market neutral strategy combining quantitative and fundamental analysis, which is diversified over a blend of uncorrelated equity strategies. The Trustees reviewed biographical information for each Boston Company portfolio manager who would be providing services under the Subadvisory Agreement and noted the breadth and depth of experience presented with the team leaders having 48 years of cumulative experience; 2) that the Boston Company's equities investment management is team managed, and the core team members have been working together since 1991; 3) the rate of the investment subadvisory fee that would be paid by the Adviser (and not the Fund) under the Subadvisory Agreement, and the advisory fee paid by the Fund, both of which would remain unchanged, at this time, from the fees paid under the previous subadvisory agreement and Advisory Agreement; 4) the performance of a composite of the prior performance of all discretionary private accounts managed by the Boston Company with substantially similar investment objectives, strategies and policies as the Fund, which outperformed the Fund over the one-, three- and five-year periods, and outperformed the Citigroup 3-Month T-bill Index over the three- and five-year periods. The Index is an average of the last three three-month Treasury bill issues; and 5) the fact that there are no other tangible benefits to the Boston Company in providing investment advisory services to the Fund, other than the fee to be earned underthe Subadvisory Agreement. There may be certain intangible benefits gained to the extent that serving the Fund could enhance the Boston Company's reputation in the marketplace, and, therefore, would enable the Boston Company to attract additional client relationships. In considering the profitability to the Boston Company of its relationship with the Fund, the Board noted that the fees under the Subadvisory Agreement were paid by the Adviser out of the advisory fees that it receives under the Advisory Agreement, and that the subadvisory fees would be paid at the same level as under the previous subadvisory agreement. For these reasons, the profitability to the Boston Company of its relationship with the Fund was not a material factor in the Board's deliberations at this time. For similar reasons, the Board did not consider the potential economies of scale in the Boston Company's management of the Fund to be a material factor in its consideration at this time. Based on all the foregoing reasons, the Board concluded that the proposed Subadvisory Agreement was favorable for shareholders because shareholders could benefit from management of the Fund's assets by the equities investment team at the Boston Company. 100 CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS FOR PHOENIX SENIOR FLOATING RATE FUND (THE "FUND") BY THE BOARD OF TRUSTEES (UNAUDITED) The Board of Trustees of the Phoenix Opportunities Trust (the "Trust"), along with the Boards of Trustees of the other trusts in the Phoenix family of funds (collectively, the "Board"), is responsible for determining whether to approve the entering into and continuation of each investment advisory and subadvisory agreement (each, an "Agreement") for the Phoenix Funds. At a meeting held on November 15, 2007, the Board, including a majority of the Trustees who are not interested persons as defined in Section 2(a)(19) of the Investment Company Act of 1940, considered and approved each Agreement for the Fund, as further discussed below. In approving each Agreement, the Board determined that the retention of the adviser and subadviser was in the best interests of the Fund and its shareholders. In reaching their decisions, the Board considered information for other Phoenix Funds furnished throughout the year at regular Board meetings as well as information prepared specifically in connection with the approval review process. During the approval review process, the Board received assistance and advice from and met separately with independent legal counsel. The Board's determination contemplated a number of factors that the Trustees believed to be relevant. Some of the factors that the Board considered are described below, although the Trustees did not identify any particular information or factor as controlling, but, instead, the Board considered the Agreements in the totality of the circumstances. Each individual Trustee may have evaluated the information presented differently, giving different weights to different factors. NATURE, EXTENT AND QUALITY OF SERVICES. The Fund would be managed using a "manager of managers" structure that generally involves the use of one or more subadvisers to manage some or all of the Fund's portfolio. Under this structure, Phoenix Investment Counsel, Inc. ("PIC") is responsible for evaluating and selecting subadvisers on an ongoing basis and for making any recommendations to the Board regarding hiring, retaining or replacing subadvisers. Therefore, in considering the Agreement with PIC as adviser the Trustees considered PIC's existing process for supervising and managing the other Phoenix Funds subadvisers, including (a) PIC's ability to select and monitor the subadvisers; (b) PIC's ability to provide the services necessary to monitor the subadvisers' compliance with the Funds' respective investment objectives, policies and restrictions as well as provide other oversight activities; and (c) PIC's ability and willingness to identify instances in which a subadviser should be replaced and to carry out the required changes. The Trustees also considered: (d) the experience, capability and integrity of PIC's management and other personnel; (e) the financial position of PIC; (f) the quality of PIC's own regulatory and legal compliance policies, procedures and systems; (g) the nature, extent and quality of administrative and other services provided by PIC to the Phoenix Funds; and (h) PIC's supervision of the Phoenix Funds' other service providers. Finally, the Board also noted the extent of benefits that are provided to Phoenix Fund shareholders as a result of being part of the Phoenix family of funds, including the right to exchange investments between the same class of Phoenix Funds without a sales charge, the ability to reinvest Phoenix Fund dividends into other Phoenix Funds and the right to combine holdings in other Phoenix Funds to obtain a reduced sales charge. With respect to the subadvisory Agreement, the Board noted that Goodwin Capital Advisers, Inc. (the "Subadviser") provided information with respect to portfolio management, compliance with the Fund's investment policies and procedures, and compliance with applicable securities laws and assurances thereof. In considering the approval of the subadvisory Agreement, the Board considered the Subadviser's investment management process, including (a) the experience, capability and integrity of the Subadviser's management and other personnel committed by the Subadviser to manage the Fund; (b) the financial position of the Subadviser; (c) the quality and commitment of the Subadviser's regulatory and legal compliance policies, procedures and systems and (d) the Subadviser's brokerage and trading practices. After considering all of the information provided to them, the Trustees concluded that the nature, extent and quality of the services provided by PIC and the Subadviser were reasonable and beneficial to the Fund and its shareholders. INVESTMENT PERFORMANCE. Because the Fund had not commenced operations, the Board could not evaluate prior investment performance for the Fund. While the Board noted that the Subadviser did not currently manage any other accounts in the same style, the Board did note the subadviser's previous investment experience with senior floating rate securities. After considering the information presented, the Board ultimately concluded that it should approve the Agreements. PROFITABILITY. The Board also considered the level of profits realized by PIC and its affiliates in connection with the operation of the Fund. The Trustees considered any other benefits derived by PIC or its affiliates from their relationship with the Fund including the contractual reimbursements that would be provided to the Fund in order to limit the total expenses incurred by the Fund and its shareholders. The Board noted that the profitability appeared reasonable and concluded that the profitability to PIC from the Fund was reasonable in light of the quality of all services rendered to the Fund by PIC and its affiliates. The Board did not separately review profitability information for the Subadviser, noting that the subadvisory fees are paid by PIC rather than by the Fund. MANAGEMENT FEES AND TOTAL EXPENSES. In evaluating the management fees and total expenses of the Fund, the Board reviewed information provided by PIC and comparisons to other funds in the Fund's peer group. The Board also noted the contractual reimbursements that would be provided to the Fund in order to limit the total expenses incurred by the Fund and its shareholders. Based upon the information presented by PIC, the Trustees determined that the management fees charged by PIC and the total expenses of the Fund were reasonable. While the Board acknowledged that the subadvisory fees to be paid would be paid by PIC and not by the Fund, the Board received comparative fee information relating to other funds in the Fund's peer group relative to the subadvisory fees. The Board noted that the subadvisory fees appeared to be reasonable in light of the quality of services to be rendered by the Subadviser. ECONOMIES OF SCALE. The Board noted that the management fees for the Fund included breakpoints based on assets under management, and contractual reimbursements which would also be in place for the Fund. The Board determined that PIC and the Fund likely would achieve certain economies of scale, particularly in relationship to certain fixed costs, and shareholders of the Fund would have an opportunity to benefit from these economies of scale. In considering the subadvisory Agreement, the Board also considered the existence of any economies of scale and whether they would be passed along to the Fund's shareholders, but noted that any such economies would likely be generated at the Fund level rather than at the Subadviser level. 101 RESULTS OF SHAREHOLDER MEETING PHOENIX OPPORTUNITIES TRUST DECEMBER 27, 2007 (UNAUDITED) At a special meeting of shareholders of Phoenix Market Neutral Fund, a series of Phoenix Opportunities Trust, held on December 27, 2007, shareholders voted on the following proposals: NUMBER OF ELIGIBLE UNITS VOTED:
FOR AGAINST ABSTAIN --------- ------- ------- To approve a Subadvisory Agreement between Phoenix Investment Counsel, Inc. and The Boston Company Asset Management, LLC ............. 4,363,841 5,972 23,863 To approve a proposal to permit Phoenix Investment Counsel, Inc. to hire and replace subadvisers or to modify subadvisory agreements without shareholder approval .............. 4,335,240 33,923 24,513
102 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. 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 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 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 * Pursuant to the Trust's retirement policy, Messrs. Conway, Dalzell-Payne and Jeffries will retire from the Board of Trustees in May, 2008. -------------------------------------------------------------------------------- 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 --------------- [LOGO] 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. PXP5031a BPD34821 3-08 [LOGO OMITTED] PHOENIX -------------------------------------------------------------------------------- SEMIANNUAL REPORT Phoenix Foreign Opportunities 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 | March 31, 2008 | PHOENIXFUNDS.COM ................................................................................ NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE TABLE OF CONTENTS Message to Shareholders................................................... 1 Disclosure of Fund Expenses............................................... 4 Schedule of Investments................................................... 6 Statement of Assets and Liabilities....................................... 10 Statement of Operations................................................... 11 Statement of Changes in Net Assets........................................ 12 Financial Highlights...................................................... 14 Notes to Financial Statements............................................. 16 Consideration of Advisory and Sub-Advisory Agreements by the Board of Trustees ................................... 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 Fund 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 for the 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 Real Estate Securities Fund 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: Whether we are headed into a recession or firmly entrenched in one, consumers are uncomfortable. Preserving assets has become a critical concern as investors deal with falling home values, tightening credit standards, job worries and high energy prices. At Phoenix Investment Partners, we are committed to helping investors succeed over the long term and we strive to provide investors with choice. The start of 2008 was rife with investor confusion caused, in part, by weakness in the equity markets, conflicting economic news, continued liquidity issues, a plummeting dollar, and a weakening of world markets. The U.S. economy has slowed considerably--it may even be shrinking slightly. A weaker economy could cause a reduction in revenues for corporations, as well as state and local governments. In response, many investors have moved money into Treasury securities, considered to be safe from the risk of default. This flight to the relative safety of Treasuries has driven their prices up and their yields down, compared with other securities, including municipal bonds. Look at recent performance through the lens of history: Through February 29, the S&P 500 had fallen 9.05% YTD, the worst two-month start to a year since 1933 (when the market fell 17%). March's return moderated somewhat, losing only 0.43%, bringing the year-to-date return to -9.44%. Since 1925, there have been five worse quarters than this, four were in the 1930s and the fifth was the first quarter of 2001 when the S&P 500 lost 11.85%. While the overall market performance for the quarter is somewhat indicative of the state of the economy, the absolute numbers don't tell the whole story; volatility does. The volatility of the S&P 500 in the first quarter ranks an historic fifth of all time, since 1925, as measured by the number of days when the market moved by more than 1%. Thoughtful investment planning calls for a well-diversified portfolio to help moderate the impact of market volatility. PhoenixFunds 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. This report for the fiscal period ended March 31, 2008 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. It is 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. 1 As president of Phoenix Investment Partners, Ltd., I would like to thank you for entrusting your assets with us. We are committed to providing you with 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. It is our privilege to serve you. Sincerely, /s/ George R. Aylward ----------------------------- George R. Aylward President, PhoenixFunds APRIL 2008 PERFORMANCE DATA QUOTED REPRESENTS PAST RESULTS. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN PERFORMANCE SHOWN ABOVE. 2 THIS PAGE INTENTIONALLY BLANK. 3 PHOENIX FOREIGN OPPORTUNITIES FUND DISCLOSURE OF FUND EXPENSES (UNAUDITED) FOR THE SIX-MONTH PERIOD OF OCTOBER 1, 2007 TO MARCH 31, 2008 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 Table illustrates 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 OCTOBER 1, 2007 TO MARCH 31, 2008 EXPENSE TABLE -------------------------------------------------------------------------------- Beginning Ending Expenses Account Account Annualized Paid Value Value Expense During October 1, 2007 March 31, 2008 Ratio Period* -------------------------------------------------------------------------------- FOREIGN OPPORTUNITIES FUND ACTUAL Class A $1,000.00 $ 920.30 1.36% $ 6.53 Class C 1,000.00 916.80 2.11 10.11 Class I 1,000.00 921.70 1.11 5.33 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,018.12 1.36 6.89 Class C 1,000.00 1,014.32 2.11 10.68 Class I 1,000.00 1,019.38 1.11 5.62 * 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 366 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 SCHEDULE OF INVESTMENTS MARCH 31, 2008 (UNAUDITED) -------------------------------------------------------------------------------- COUNTRY WEIGHTINGS* United Kingdom 15% India 12 Switzerland 9 Japan 5 Hong Kong 5 Netherlands 5 Canada 4 Other (includes short-term investments) 45 * As a % of total investments. -------------------------------------------------------------------------------- VALUE SHARES (000) --------- ----------- FOREIGN COMMON STOCKS(c)--95.8% AUSTRALIA--1.7% BHP Billiton Ltd. (Diversified Metals & Mining) 178,200 $ 5,832 Woolworths Ltd. (Food Retail) 1 --(j) WorleyParsons Ltd. (Oil & Gas Equipment & Services)(f) 541,221 16,555 ----------- 22,387 ----------- BELGIUM--3.4% InBev N.V. (Brewers) 495,145 43,573 BRAZIL--4.5% Banco Itau Holding Financieira SA ADR (Diversified Banks) 615,800 14,015 Petroleo Brasileiro SA ADR (Integrated Oil & Gas) 384,261 39,237 Souza Cruz SA (Tobacco) 197,700 5,104 ----------- 58,356 ----------- CANADA--4.6% Canadian Natural Resources Ltd. (Oil & Gas Exploration & Production) 580,320 39,728 Suncor Energy, Inc. (Integrated Oil & Gas) 199,200 19,254 ----------- 58,982 ----------- VALUE SHARES (000) --------- ----------- DENMARK--1.1% Novo Nordisk A/S Class B (Pharmaceuticals)(f) 205,900 $ 14,080 FINLAND--2.5% Nokia Oyj (Communications Equipment) 1,044,000 33,030 FRANCE--2.6% Air Liquide (Industrial Gases)(f) 118,000 17,990 L'Oreal SA (Personal Products)(f) 121,300 15,405 ----------- 33,395 ----------- GERMANY--5.6% Deutsche Boerse AG (Specialized Finance)(f) 339,720 54,722 RWE AG (Multi-Utilities)(f) 148,400 18,242 ----------- 72,964 ----------- HONG KONG--5.3% Cheung Kong Holdings Ltd. (Real Estate Management & Development) 914,000 12,977 China Mobile Ltd. (Wireless Telecommunication Services) 342,600 5,098 China Mobile Sponsored ADR Ltd. (Wireless Telecommunication Services)(f) 88,700 6,653 See Notes to Financial Statements 6 PHOENIX FOREIGN OPPORTUNITIES FUND VALUE SHARES (000) --------- ----------- HONG KONG--(CONTINUED) CNOOC Ltd. (Oil & Gas Exploration & Production) 15,796,200 $ 23,341 Jardine Matheson Holdings Ltd. (Multi-Sector Holdings) 670,284 21,168 ----------- 69,237 ----------- INDIA--13.7% ABB Ltd. India (Electrical Components & Equipment) 271,153 7,975 Bharat Heavy Electricals Ltd. (Electrical Components& Equipment) 196,482 10,095 Bharti Airtel Ltd. (Integrated Telecommunication Services)(b) 1,527,911 31,467 HDFC Bank Ltd. (Diversified Banks) 615,485 20,423 HDFC Bank Ltd. ADR (Diversified Banks)(f) 299,802 29,453 Housing Development Finance Corp. (Consumer Finance) 539,390 31,994 India Infoline Ltd. (Investment Banking & Brokerage) 195,406 3,744 Infrastructure Development Finance Co. Ltd. (Consumer Finance) 4,183,700 15,746 ITC Ltd. (Tobacco) 2,592,200 13,326 United Spirits Ltd. (Brewers) 366,960 13,737 ----------- 177,960 ----------- IRELAND--0.0% Anglo Irish Bank Corp. plc (Diversified Banks) 2 --(j) ITALY--1.0% Maire Tecnimont S.p.A. (Construction & Engineering)(b) 2,448,400 12,369 VALUE SHARES (000) --------- ----------- JAPAN--5.8% Japan Tobacco, Inc. (Tobacco) 3,442 $ 17,231 Millea Holdings, Inc. (Property & Casualty Insurance) 773,100 28,541 Secom Co. Ltd. (Diversified Commercial & Professional Services)(f) 613,500 29,789 ----------- 75,561 ----------- MEXICO--2.8% America Movil S.A.B. de C.V. ADR Series L (Wireless Telecommunication Services) 560,253 35,683 NETHERLANDS--5.2% Schlumberger Ltd. (Oil & Gas Equipment & Services)(e) 503,400 43,796 Schlumberger Ltd. (Oil & Gas Equipment & Services)(d) 20,000 1,759 Unilever N.V. (Packaged Foods & Meats) 634,400 21,303 ----------- 66,858 ----------- NORWAY--2.2% Orkla ASA (Industrial Conglomerates)(f) 2,235,775 28,318 SINGAPORE--1.1% Keppel Corp. Ltd. (Industrial Conglomerates) 1,919,400 13,805 SPAIN--2.4% Enagas S.A. (Gas Utilities)(f) 1,040,101 31,084 SWITZERLAND--10.6% Kuehne & Nagel International AG (Marine) 195,083 19,516 Lindt & Spruengli AG (Packaged Foods & Meats) 2,912 9,676 See Notes to Financial Statements 7 PHOENIX FOREIGN OPPORTUNITIES FUND VALUE SHARES (000) --------- ----------- SWITZERLAND--(CONTINUED) Nestle S.A. Registered Shares (Packaged Foods & Meats)(h) 107,558 $ 53,747 Nestle S.A. Registered Shares (PackagedFoods & Meats)(i) 6,600 3,298 Novartis AG Registered Shares (Pharmaceuticals) 267,000 13,685 Roche Holding AG Registered Shares (Pharmaceuticals) 195,204 36,737 ----------- 136,659 ----------- UNITED KINGDOM--17.2% British American Tobacco plc (Tobacco) 2,064,626 77,485 Diageo plc (Distillers & Vintners) 817,364 16,481 Imperial Tobacco Group plc (Tobacco) 708,872 32,611 Reckitt Benckiser Group plc (Household Products) 536,492 29,717 SABMiller plc (Brewers) 1,133,989 24,846 Tesco plc (Food Retail) 5,457,090 41,047 ----------- 222,187 ----------- UNITED STATES--2.5% Core Laboratories N.V. (Oil & Gas Equipment & Services)(b)(f) 273,097 32,580 -------------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $1,137,614) 1,239,068 -------------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--95.8% (IDENTIFIED COST $1,137,614) 1,239,068 -------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS--16.8% MONEY MARKET MUTUAL FUNDS--11.4% State Street Navigator Prime Plus (3.182% seven-day effective yield)(g) 148,005,692 $ 148,006 PAR VALUE (000) --------- FEDERAL AGENCY SECURITIES(k)--5.4% FHLB 1.500% due 4/1/08 $ 40,055 40,055 1.550% due 4/2/08(f) 17,400 17,399 2.000% due 4/3/08 12,085 12,084 ----------- 69,538 ----------- ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $217,544) 217,544 ---------------------------------------------------------------------------- TOTAL INVESTMENTS--112.6% (IDENTIFIED COST $1,355,158) 1,456,612(a) Other assets and liabilities, net--(12.6)% (162,607) ----------- NET ASSETS--100.0% $ 1,294,005 =========== See Notes to Financial Statements 8 PHOENIX FOREIGN OPPORTUNITIES FUND At March 31, 2008, the Fund had entered into forward currency contracts as follows (reported in 000s): Net Unrealized Contract In Exchange Settlement Appreciation to Sell for Date Value (Depreciation) ---------- ------------ ------------ ---------- --------------- GBP 72,010 USD 141,035 9/25/08 $(140,848) $ 187 ======= ABBREVIATIONS: ADR - American Depositary Receipt Alt-X Exchange - The Alternative Exchange FHLB - Federal Home Loan Bank GBP - British Pound Sterling USD - United States Dollar Virt-X Exchange - Pan-European Blue Chip Stock Exchange FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): Net unrealized appreciation of investment securities is comprised of gross appreciation of $144,248 and gross depreciation of $46,945 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $1,359,309. (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 Alt-X Exchange. (e) Shares traded on NYSE. (f) All or a portion of security is on loan. (g) Represents security purchased with cash collateral received for securities on loan. (h) Shares traded on Virt-x Exchange. (i) Shares traded on Swiss Exchange. (j) Amount is less than $500. (k) The rate shown is the discount rate. See Notes to Financial Statements 9 PHOENIX FOREIGN OPPORTUNITIES FUND STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 2008 (UNAUDITED) (Reported in thousands except per share amounts) ASSETS Investment securities at value+@ ............................ $ 1,456,612 Foreign currency at value* .................................. 1,606 Cash ........................................................ 4 Receivables Fund shares sold .......................................... 6,589 Investment securities sold ................................ 6,309 Dividends ................................................. 3,946 Tax reclaims .............................................. 196 Unrealized appreciation on forward currency contracts ....... 187 Prepaid expenses ............................................ 79 Other assets ................................................ 13 ----------- Total assets ........................................... 1,475,541 ----------- LIABILITIES Payables Fund shares repurchased ................................... 2,262 Investment securities purchased ........................... 29,263 Upon return of securities loaned .......................... 148,006 Investment advisory fee ................................... 873 Foreign capital gain taxes ................................ 388 Distribution and service fees ............................. 260 Transfer agent fee ........................................ 152 Administration fee ........................................ 89 Professional fee .......................................... 33 Trustees' fee ............................................. 14 Trustee deferred compensation plan ........................ 13 Other accrued expenses .................................... 183 ----------- Total liabilities ...................................... 181,536 ----------- NET ASSETS .................................................. $ 1,294,005 =========== NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest ............ $ 1,199,959 Undistributed net investment income (loss) .................. 1,704 Accumulated net realized loss ............................... (9,053) Net unrealized appreciation ................................. 101,395 ----------- NET ASSETS .................................................. $ 1,294,005 =========== CLASS A Net asset value (Net assets/shares outstanding) per share ... $25.71 Offering price per share $25.71/(1-5.75%) ................... $27.28 Shares of beneficial interest outstanding, $0.001 par value, unlimited authorization ........................ 28,918 Net Assets .................................................. $ 743,503 CLASS C Net asset value (Net assets/shares outstanding) and offering price per share .................................. $25.47 Shares of beneficial interest outstanding, $0.001 par value, unlimited authorization ............................ 4,750 Net Assets .................................................. $ 121,009 CLASS I Net asset value (Net assets/shares outstanding) and offering price per share .............................. $25.74 Shares of beneficial interest outstanding, $0.001 par value, unlimited authorization ............................ 16,688 Net Assets .................................................. $ 429,493 + Investment securities at cost ............................ 1,355,158 * Foreign currency at cost ................................. 1,521 @ Market value of securities on loan ....................... 150,540 See Notes to Financial Statements 10 PHOENIX FOREIGN OPPORTUNITIES FUND STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 2008 (UNAUDITED) (Reported in thousands) 10/1/07 - 3/31/08 ----------- INVESTMENT INCOME Dividends ................................................ $ 9,406 Interest ................................................. 1,066 Security lending ......................................... 464 Foreign taxes withheld ................................... (639) ----------- Total investment income ............................. 10,297 ----------- EXPENSES Investment advisory fee .................................. 5,411 Service fees, Class A .................................... 899 Distribution and service fees, Class C ................... 592 Transfer agent ........................................... 585 Administration fee ....................................... 535 Custodian ................................................ 429 Printing ................................................. 62 Registration ............................................. 61 Trustees ................................................. 51 Professional ............................................. 39 Miscellaneous ............................................ 70 ----------- Total expenses ...................................... 8,734 Less expenses reimbursed by investment adviser ........... (189) Custodian fees paid indirectly ........................... (4) ----------- Net expenses ........................................ 8,541 ----------- NET INVESTMENT INCOME (LOSS) ............................. 1,756 ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments .................. 33,523 Net realized gain (loss) on foreign currency transactions (14,373) Net change in unrealized appreciation (depreciation) on investments ......................................... (130,495) Net change in unrealized appreciation (depreciation) on foreign currency translations ....................... 2,348 ----------- NET GAIN (LOSS) ON INVESTMENTS ........................... (108,997) ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........................................ $ (107,241) =========== See Notes to Financial Statements 11 PHOENIX FOREIGN OPPORTUNITIES FUND STATEMENT OF CHANGES IN NET ASSETS
(Reported in thousands) 10/1/07 - 3/31/08 3/1/07 - 3/1/06 - (Unaudited) 9/30/07 2/28/07 ----------- ---------- ---------- FROM OPERATIONS Net investment income (loss) ....................... $ 1,756 $ 7,897 $ 2,051 Net realized gain (loss) ........................... 19,150 2,926 21,657 Net change in unrealized appreciation (depreciation) ................................... (128,147) 110,208 21,289 ----------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .................................. (107,241) 121,031 44,997 ----------- ---------- ---------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A ..................... (4,273) (1,345) (1,513) Net investment income, Class C ..................... (216) (130) (46) Net investment income, Class I ..................... (3,178) (1,056) (499) Net realized short-term gains, Class A ............. (6,704) (180) (800) Net realized short-term gains, Class C ............. (1,119) (25) (56) Net realized short-term gains, Class I ............. (4,041) (128) (249) Net realized long-term gains, Class A .............. (5,433) (538) (4,377) Net realized long-term gains, Class C .............. (907) (76) (388) Net realized long-term gains, Class I .............. (3,275) (378) (1,110) ----------- ---------- ---------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS .................................. (29,146) (3,856) (9,038) ----------- ---------- ---------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A ......................................... 153,549 238,239 204,396 Change in net assets from share transactions, Class C ......................................... 27,208 51,541 37,383 Change in net assets from share transactions, Class I ......................................... 43,084 309,681 77,166 ----------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS ............................... 223,841 599,461 318,945 ----------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS .............. 87,454 716,636 354,904 NET ASSETS Beginning of period ................................ 1,206,551 489,915 135,011 ----------- ---------- ---------- END OF PERIOD ...................................... $ 1,294,005 $1,206,551 $ 489,915 =========== ========== ========== Undistributed net investment income (loss) ......... $ 1,704 $ 7,615 $ (1,463)
See Notes to Financial Statements 12 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 VALUE, INVESTMENT AND FROM FROM NET FROM NET BEGINNING INCOME UNREALIZED INVESTMENT INVESTMENT REALIZED RETURN OF OF PERIOD (LOSS)(2) GAIN (LOSS) OPERATIONS INCOME GAINS CAPITAL ------------------------------------------------------------------------------------------------------------------------------ CLASS A 10/1/07-3/31/08(9) $28.58 $ 0.04(4) $(2.26) $(2.22) $(0.17) $(0.48) $ -- 3/1/07-9/30/07 25.00 0.22(4) 3.46 3.68 (0.06) (0.04) -- 3/1/06-2/28/07 21.47 0.21(4) 4.08 4.29 (0.17) (0.59) -- 3/1/05-2/28/06 19.02 0.17(4) 3.85 4.02 (0.22) (1.35) -- 3/1/04-2/28/05 15.47 0.16 3.81 3.97 (0.16) (0.26) -- 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) 1/1/02-12/31/02 12.88 0.03 (1.05) (1.02) -- -- -- CLASS C 10/1/07-3/31/08(9) $28.31 $(0.07)(4) $(2.24) $(2.31) $(0.05) $(0.48) $ -- 3/1/07-9/30/07 24.85 0.10(4) 3.44 3.54 (0.04) (0.04) -- 3/1/06-2/28/07 21.41 (0.01)(4) 4.11 4.10 (0.07) (0.59) -- 3/1/05-2/28/06 19.11 (0.06)(4) 3.92 3.86 (0.21) (1.35) -- 3/1/04-2/28/05 15.55 0.01 3.84 3.85 (0.03) (0.26) -- 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) -- CLASS I 10/1/07-3/31/08(9) $28.61 $ 0.07(4) $(2.25) $(2.18) $(0.21) $(0.48) $ -- 3/1/07-9/30/07 25.00 0.25(4) 3.47 3.72 (0.07) (0.04) -- 5/15/06(6)-2/28/07 22.54 0.13(4) 3.14 3.27 (0.22) (0.59) --
(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 $0.005. (6) Inception date of the Class. (7) Payment by affiliate. (8) Payment by non-affiliate. See Note 5 in the Notes to Financial Statements. (9) Unaudited. See Notes to Financial Statements 14
RATIO OF NET RATIO OF RATIO OF PAYMENT NET NET OPERATING GROSS NET BY CHANGE ASSET ASSETS, EXPENSES TO OPERATING INVESTMENT AFFILIATE IN NET VALUE, END OF AVERAGE EXPENSES TO INCOME (LOSS) TOTAL NON- ASSET END OF TOTAL PERIOD NET AVERAGE TO AVERAGE PORTFOLIO DISTRIBUTIONS AFFILIATE VALUE PERIOD RETURN(1) (000'S) ASSETS NET ASSETS NET ASSETS TURNOVER ------------------------------------------------------------------------------------------------------------------------------------ CLASS A 10/1/07-3/31/08(9) $(0.65) $ -- $(2.87) $25.71 (7.97)%(3) $743,503 1.36%(2) 1.39%(2) 0.27%(2) 64%(3) 3/1/07-9/30/07 (0.10) --(5)(8) 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 (0.76) -- 3.53 25.00 20.39 360,822 1.37 1.43 0.88 57 3/1/05-2/28/06 (1.57) -- 2.45 21.47 21.82 128,991 1.25 1.62 0.85 52 3/1/04-2/28/05 (0.42) --(5)(7) 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 (0.55) 0.02 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 10/1/07-3/31/08(9) $(0.53) $ -- $(2.84) $25.47 (8.32)%(3) $121,009 2.11%(2) 2.14%(2) (0.48)%(2) 64%(3) 3/1/07-9/30/07 (0.08) --(5)(8) 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 (0.66) -- 3.44 24.85 19.46 45,154 2.13 2.17 (0.06) 57 3/1/05-2/28/06 (1.56) -- 2.30 21.41 20.96 6,019 2.00 2.35 (0.29) 52 3/1/04-2/28/05 (0.29) --(5)(7) 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 (0.43) 0.02 1.04 14.95 10.71(3) 11 1.92(2) 5.85(2) (0.14)(2) 65(3) CLASS I 10/1/07-3/31/08(9) $(0.69) $ -- $(2.87) $25.74 (7.83)%(3) $429,493 1.11%(2) 1.14%(2) 0.49%(2) 64%(3) 3/1/07-9/30/07 (0.11) --(5)(8) 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 (0.81) -- 2.46 25.00 14.84(3) 83,938 1.13(2) 1.17(2) 0.71(2) 57(3)
15 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) 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 Funds' 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 of the acquired funds' fiscal year ends were changed to correspond with the Trust's September 30th fiscal year end. As of the date of this report, nineteen funds are offered for sale, of which the Fund is reported in this semiannual report. The Fund is diversified and has an investment objective of long-term capital appreciation. The Fund offers Class A shares, Class C shares and Class I shares for sale. 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 made within one year following 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. Class I shares are sold without a sales charge. 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 FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (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. The Fund will be adopting SFAS 157 effective with the December 31, 2008 quarterly reporting of the schedule of investments. In March 2008, Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("FAS 161") was issued and is effective for fiscal years and interim periods beginning after November 15, 2008. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why a fund uses derivatives, how derivatives are accounted for, and how derivative instruments affect a fund's results of operations and financial position. Management is currently evaluating the impact of FAS 161 on financial statement disclosures, if any. 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. 17 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) FASB Interpretation No. 48, ("FIN 48") Accounting for Uncertainty in Income Taxes, sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has analyzed the Fund's tax positions and has concluded that no provision for income tax is required in the Fund's financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. However, management's conclusions regarding the adoption of FIN 48 may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance from the FASB, new tax laws, regulations and administrative interpretations (including court decisions). Each of the Fund's federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. 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 18 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) 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. 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, or securities issued or guaranteed by the U.S. Government or its agencies. 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 March 31, 2008, the Fund had securities on loan as follows (reported in 000s): MARKET VALUE OF SECURITIES NON-CASH CASH LOANED COLLATERAL COLLATERAL ---------------- ---------------- -------------- $150,540 $7,811 $148,006 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 19 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) 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 Fund's Schedule of Investments and subsequently marked-to-market to reflect the current value of the option. When a purchased option is exercised, the cost of the security is adjusted by the amount of premium paid. The risk associated with purchased options is limited to the premium paid. 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 1.35% for Class A Shares, 2.10% for Class C Shares and 1.10% for Class I Shares. The Adviser will voluntarily continue this expense reimbursement arrangement subsequent to June 30, 2008, but may discontinue it at any time. 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 000s) 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 six-month period (the "period") ended March 31, 2008, as follows (reported in 000s): CLASS A CLASS A CLASS C NET SELLING DEFERRED DEFERRED COMMISSIONS SALES CHARGES SALES CHARGES --------------- --------------- --------------- $51 --(1) $28 (1) Amount is less than $500. 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% 20 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) 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 include 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 March 31, 2008, the Fund incurred administration fees totaling $535 (reported in 000s). PEPCO serves as the Fund's transfer agent with Boston Financial Data Services, Inc. serving as sub-transfer agent. For the period ended March 31, 2008, transfer agent fees were $585 (reported in 000s) as reported in the Statement of Operations. At March 31, 2008, PNX and its affiliates and Phoenix affiliated Funds held shares of the Fund which aggregated the following (reported in 000s): AGGREGATE NET ASSET SHARES VALUE -------------- ------------- Class A .......... 380 $9,766 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 March 31, 2008. 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 March 31, 2008, were as follows: LONG-TERM (REPORTED IN 000S) -------------------------------- PURCHASES SALES ---------------- ------------ $947,905 $777,181 There were no purchases or sales of long-term U.S. Government and agency securities. 21 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) 5. CAPITAL SHARES Transactions (reported in 000s) in shares of capital stock, for the periods ended as indicated, below, were as follows:
----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT -------- ----------- -------- ---------- ----------------------------- ---------------------- ----------------------- FOREIGN 10/1/07 - 3/1/07 - OPPORTUNITIES FUND (1) 3/31/08 9/30/07 ----------------------------- ---------------------- ----------------------- CLASS A Shares sold 8,681 $ 238,377 11,830 $ 314,927 Reinvestment of distributions 514 14,391 66 1,796 Plan of Reorganization (Note 11) -- -- 145 3,821 Redemptions (3,641) (99,219) (3,111) (82,305) ------- ---------- ------- ---------- Net increase / (decrease) 5,554 $ 153,549 8,930 $ 238,239 ======= ========== ======= ========== CLASS C Shares sold 1,212 $ 33,444 2,145 $ 56,470 Reinvestment of distributions 51 1,421 5 140 Plan of Reorganization (Note 11) -- -- 8 198 Redemptions (287) (7,657) (201) (5,267) ------- ---------- ------- ---------- Net increase / (decrease) 976 $ 27,208 1,957 $ 51,541 ======= ========== ======= ========== CLASS I Shares sold 2,906 $ 79,424 2,150 $ 57,224 Reinvestment of distributions 285 7,970 41 1,104 Plan of Reorganization (Note 11) -- -- 11,024 290,636 Redemptions (1,602) (44,310) (1,474) (39,283) ------- ---------- ------- ---------- Net increase / (decrease) 1,589 $ 43,084 11,741 $ 309,681 ======= ========== ======= ==========
(1) 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. 22 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) --------------------- SHARES AMOUNT --------- ---------- ----------------------------- --------------------- FOREIGN 3/31/06 - OPPORTUNITIES FUND (1) 2/28/07 ----------------------------- --------------------- CLASS A Shares sold 9,887 $ 239,921 Reinvestment of distributions 270 6,284 Plan of Reorganization (Note 11) 575 12,673 Redemptions (2,306) (54,482) ------- ---------- Net increase / (decrease) 8,426 $ 204,396 ======= ========== CLASS C Shares sold 1,512 $ 36,932 Reinvestment of distributions 15 344 Plan of Reorganization (Note 11) 66 1,457 Redemptions (58) (1,350) ------- ---------- Net increase / (decrease) 1,535 $ 37,383 ======= ========== CLASS I Shares sold 1,409 $ 34,448 Reinvestment of distributions 46 1,065 Plan of Reorganization (Note 11) 2,113 46,590 Redemptions (210) (4,937) ------- ---------- Net increase / (decrease) 3,358 $ 77,166 ======= ========== 23 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) 6. 10% SHAREHOLDERS As of March 31, 2008, the Fund had individual shareholder accounts and/or omnibus shareholder accounts (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 ------------- ----------- 15% 1 7. 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. 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. 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 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 this matter will be material to these financial statements. 24 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) 10. FEDERAL INCOME TAX INFORMATION (amounts reported in 000s) 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. 11. PLANS OF REORGANIZATION (All values except for per share amounts are reported in 000s) 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 11,024 Class I shares, 145 Class A shares, and 8 Class C shares of the Foreign Opportunities Fund outstanding on April 13, 2007 (valued at $290,636, $3,821 and $198, respectively) for 15,423 Class I shares, 212 Class A shares, and 11 Class C shares of the International Fund outstanding on April 13, 2007. The International Fund had net assets on that date of $294,655 including $53,500 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 $885,263. The shareholders of each Class of the International Fund received for each share owned approximately 0.71, 0.68 and 0.69 share, respectively, of Class I, Class A, and Class C shares 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 Class I (f/k/a Class X) shares, 575 Class A shares, and 66 Class C shares of the Foreign Opportunities Fund outstanding on May 19, 2006 (valued at $46,590, $12,673 and $1,457, respectively) for 3,027 Class I (f/k/a Class X) shares, 789 Class A shares, 39 Class B shares and 96 Class C shares of the Overseas Fund outstanding on May 19, 2006. The Overseas Fund had net assets on that date of $60,720 including $17,640 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 $208,972. The shareholders of each Class of the Overseas Fund received for each share owned approximately 0.70, 0.69 and 0.69 share, respectively, of Class I (f/k/a Class X), Class A, and Class C shares 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. 25 PHOENIX FOREIGN OPPORTUNITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) 12. OTHER On February 7, 2008, PNX announced that it intends to spin off its asset management subsidiary ("spin-off"), Phoenix Investment Partners, Ltd. ("PXP"), to PNX' shareholders. The Fund's Administrator and Transfer Agent PEPCO,a subsidiary of PXP, and the Fund's Adviser, PIC, also a subsidiary of PXP, are also intended to be part of the spin-off. 26 CONSIDERATION OF ADVISORY AND SUB-ADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES MARCH 31, 2008 (UNAUDITED) The Board of Trustees of the Trust, along with the Boards of Trustees of the other trusts in the Phoenix family of funds (collectively, the "Board"), is responsible for determining whether to approve the entering into and continuation of each investment advisory and subadvisory agreement (each, an "Agreement") for the Phoenix funds (collectively, the "Funds"). At meetings held on November 13 - 16, 2007, the Board, including a majority of the Trustees who are not interested persons as defined in Section 2(a)(19) of the Investment Company Act of 1940, considered and approved the continuation of each Agreement, as further discussed below. In approving each Agreement, the Board determined that the continued retention of the applicable adviser or subadviser was in the best interests of each Fund and its shareholders. The Trustees considered each Fund separately, although they also collectively took into account those interests that all the Funds had in common. In reaching their decisions, the Board considered information furnished throughout the year at regular Board meetings as well as information prepared specifically in connection with the annual review process. During the review process, the Board received assistance and advice from and met separately with independent legal counsel. The Board's determination contemplated a number of factors that the Trustees believed to be relevant. Some of the factors that the Board considered are described below, although the Trustees did not identify any particular information or factor as controlling, but, instead, the Board considered the Agreements in the totality of the circumstances. Each individual Trustee may have evaluated the information presented differently, giving different weights to different factors. NATURE, EXTENT AND QUALITY OF SERVICES. The majority of the Funds(1) are managed using a "manager of managers" structure that generally involves the use of one or more subadvisers to manage some or all of a Fund's portfolio. Under this structure, Phoenix Investment Counsel, Inc. ("PIC") is responsible for evaluating and selecting subadvisers on an ongoing basis and for making any recommendations to the Board regarding hiring, retaining or replacing subadvisers. In considering the Agreement with PIC, therefore, the Trustees considered PIC's process for supervising and managing the Funds' subadvisers, including (a) PIC's ability to select and monitor the subadvisers; (b) PIC's ability to provide the services necessary to monitor the subadvisers' compliance with the Funds' respective investment objectives, policies and restrictions as well as provide other oversight activities; and (c) PIC's ability and willingness to identify instances in which a subadviser should be replaced and to carry out the required changes. The Trustees also considered: (d) the experience, capability and integrity of PIC's management and other personnel; (e) the financial position of PIC; (f) the quality of PIC's own regulatory and legal compliance policies, procedures and systems; (g) the nature, extent and quality of administrative and other services provided by PIC to the Funds; and (h) PIC's supervision of the Funds' other service providers. Finally, the Board also noted the extent of benefits that are provided to Fund shareholders as a result of being part of the Phoenix family of Funds, including the right to exchange investments between the same class of Funds without a sales charge, the ability to reinvest Fund dividends into other Funds and the right to combine holdings in other Funds to obtain a reduced sales charge. ------------------------- (1) DURING THE PERIOD BEING REPORTED, THE ONLY FUND THAT DID NOT EMPLOY A MANAGER OF MANAGERS STRUCTURE WAS THE PHOENIX GROWTH & INCOME FUND, WHICH IS A SERIES OF PHOENIX EQUITY SERIES FUND. PIC ACTED AS THE ADVISER FOR THAT FUND WITHOUT EMPLOYING A SUBADVISER, WHICH MEANS THAT PIC PROVIDED FOR THAT FUND THE SERVICES THAT FOR THE OTHER FUNDS WERE PROVIDED BY SUBADVISERS. THE BOARD CONSIDERED THE PIC AGREEMENT WITH RESPECT TO THAT FUND IN THAT CONTEXT. 27 CONSIDERATION OF ADVISORY AND SUB-ADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES MARCH 31, 2008 (UNAUDITED) (CONTINUED) With respect to the subadvisory Agreements, the Board noted that each subadviser provided information with respect to portfolio management, compliance with the respective Fund's investment policies and procedures, and compliance with applicable securities laws and assurances thereof. In considering the renewal of the subadvisory Agreements, the Board considered each subadviser's investment management process, including (a) the experience, capability and integrity of the subadviser's management and other personnel committed by the subadviser to manage its respective Fund(s); (b) the financial position of the subadviser; (c) the quality and commitment of the subadviser's regulatory and legal compliance policies, procedures and systems; and (d) the subadviser's brokerage and trading practices. After considering all of the information provided to them, the Trustees concluded that the nature, extent and quality of the services provided by PIC and each subadviser were reasonable and beneficial to the Funds and their shareholders. INVESTMENT PERFORMANCE. The Board placed significant emphasis on its consideration of the investment performance of the Funds, in view of its importance to shareholders, and the Board evaluated Fund performance in the context of the manager-of-managers structure. The Board also considered that PIC continued to be proactive in seeking to replace and/or add subadvisers as necessary, with a view toward improving Fund performance over the long term. While consideration was given to performance reports and discussions at Board meetings throughout the year, particular attention in assessing performance was given to a report (the "Lipper Report") for the Funds prepared by Lipper Inc. ("Lipper") and furnished specifically for the contract renewal process. Lipper is an independent provider of investment company data. The Lipper Report presented each Fund's short-term and long-term performance relative to a peer group of other mutual funds and benchmarks, as selected by Lipper. The Board considered the composition of each peer group, selection criteria and the appropriateness of the benchmark used for each Fund. The Board also assessed each Fund's performance relative to the fees and expenses of each Fund as well as PIC's profitability. The Board noted that while many of the Funds had generally performed in line with their respective benchmarks and peer groups during the periods measured, some of the Funds had underperformed compared to their respective benchmarks and/or peer groups. The Board noted that certain of the Funds' underperformance was slight. Also, some of the Funds underperforming their benchmarks and/or peer groups for a given period had outperformed such benchmarks and/or peer groups during other periods. Where significant, the Board extensively considered the performance of the underperforming Funds and the reasons for the performance issues. The Board discussed the possible reasons for the underperformance with PIC and spoke with PIC regarding plans to monitor and address performance issues during the coming year. After considering all of the information presented, the Board ultimately concluded that it should approve the continuation of the Agreements. However, the Board noted that certain Funds' performance would continue to be closely monitored by PIC so that if performance over a longer period of time did not improve, the subadviser would be replaced in a timely manner. 28 CONSIDERATION OF ADVISORY AND SUB-ADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES MARCH 31, 2008 (UNAUDITED) (CONTINUED) PROFITABILITY. The Board also considered the level of profits realized by PIC and its affiliates in connection with the operation of the Funds. In this regard, the Board reviewed the analysis presented by PIC regarding its overall profitability for its management of the Phoenix retail fund family as well as the profits of its affiliates for managing and providing other services to each Fund. In addition to the fees paid to PIC and its affiliates, the Trustees considered any other benefits derived by PIC or its affiliates from their relationship with the Funds. Specific attention was paid to the methodology used to allocate costs to each Fund, in recognition of the fact that allocation methodologies are inherently subjective and various allocation methodologies may each be reasonable while producing different results. In this regard, the Board noted that the allocations appeared reasonable and concluded that the profitability to PIC from each Fund was reasonable in light of the quality of all services rendered to the Funds by PIC and its affiliates. The Board did not separately review profitability information for each subadviser, noting that the subadvisory fees are paid by PIC rather than the Funds. MANAGEMENT FEES AND TOTAL EXPENSES. In evaluating the management fees and total expenses of each Fund, the Board reviewed information provided by PIC and comparisons to other funds in each Fund's peer group as presented in the Lipper Report. The Board noted that several of the Funds had incurred one-time costs related to a shareholder proxy, causing expenses for the period shown to be higher than would be expected in future periods. The Board also noted that certain Funds had higher gross expenses when expressed as a percentage of net assets than those of such Funds' larger peers, which the Trustees considered in the context of the Funds' expectations for future growth. Finally, the Board noted that several of the Funds had fee waivers and/or expense caps in place to limit the total expenses incurred by the Funds and their shareholders. Based upon the information presented by PIC and Lipper, the Trustees determined that the management fees charged by PIC and the total expenses of the Funds were reasonable. The Board did not receive comparative fee information relating specifically to subadvisory fees, in light of the fact that the subadvisory fees are paid by PIC and not by the Funds. ECONOMIES OF SCALE. The Board noted that the management fees for several of the Funds included breakpoints based on assets under management, and fee waivers and/or expense caps were also in place for several of the Funds. The Board determined that PIC and the Funds likely would achieve certain economies of scale, particularly in relationship to certain fixed costs, and shareholders of the Funds would have an opportunity to benefit from these economies of scale. In considering the subadvisory Agreements, the Board also considered the existence of any economies of scale and whether they would be passed along to the Funds' shareholders, but noted that any such economies would likely be generated at the Fund level rather than at the subadviser level. 29 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. 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 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 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 * Pursuant to the Trust's retirement policy, Messrs. Conway, Dalzell-Payne and Jeffries will retire from the Board of Trustees in May, 2008. -------------------------------------------------------------------------------- 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. [LOGO OMITTED] --------------- PHOENIX PRESORTED STANDARD Phoenix Equity Planning Corporation U.S. POSTAGE P.O. Box 150480 PAID Hartford, CT 06115-0480 Lancaster, PA Permit No. 1793 --------------- For more information about Phoenix mutual funds, please call your financial representative, contact us at 1-800-243-1574 or visit PHOENIXFUNDS.COM. PXP5034a 3-08 BPD34820 [LOGO OMITTED] PHOENIX -------------------------------------------------------------------------------- SEMIANNUAL 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 | March 31, 2008 | PHOENIXFUNDS.COM ................................................................................ NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE TABLE OF CONTENTS Message to Shareholders................................................... 1 Disclosure of Fund Expenses............................................... 4 Schedule of Investments................................................... 6 Statement of Assets and Liabilities....................................... 24 Statement of Operations................................................... 25 Statement of Changes in Net Assets........................................ 26 Financial Highlights...................................................... 28 Notes to Financial Statements............................................. 32 Consideration of Advisory and Sub-Advisory Agreements by the Board of Trustees............................................... 42 -------------------------------------------------------------------------------- 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 Fund 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 for the 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 Multi-Sector Short Term Bond Fund 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: Whether we are headed into a recession or firmly entrenched in one, consumers are uncomfortable. Preserving assets has become a critical concern as investors deal with falling home values, tightening credit standards, job worries and high energy prices. At Phoenix Investment Partners, we are committed to helping investors succeed over the long term and we strive to provide investors with choice. The start of 2008 was rife with investor confusion caused, in part, by weakness in the equity markets, conflicting economic news, continued liquidity issues, a plummeting dollar, and a weakening of world markets. The U.S. economy has slowed considerably--it may even be shrinking slightly. A weaker economy could cause a reduction in revenues for corporations, as well as state and local governments. In response, many investors have moved money into Treasury securities, considered to be safe from the risk of default. This flight to the relative safety of Treasuries has driven their prices up and their yields down, compared with other securities, including municipal bonds. Look at recent performance through the lens of history: Through February 29, the S&P 500 had fallen 9.05% YTD, the worst two-month start to a year since 1933 (when the market fell 17%). March's return moderated somewhat, losing only 0.43%, bringing the year-to-date return to -9.44%. Since 1925, there have been five worse quarters than this, four were in the 1930s and the fifth was the first quarter of 2001 when the S&P 500 lost 11.85%. While the overall market performance for the quarter is somewhat indicative of the state of the economy, the absolute numbers don't tell the whole story; volatility does. The volatility of the S&P 500 in the first quarter ranks an historic fifth of all time, since 1925, as measured by the number of days when the market moved by more than 1%. Thoughtful investment planning calls for a well-diversified portfolio to help moderate the impact of market volatility. PhoenixFunds 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. This report for the fiscal period ended March 31, 2008 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. It is 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. 1 As president of Phoenix Investment Partners, Ltd., I would like to thank you for entrusting your assets with us. We are committed to providing you with 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. It is our privilege to serve you. Sincerely, /s/ George R. Aylward George R. Aylward President, PhoenixFunds APRIL 2008 PERFORMANCE DATA QUOTED REPRESENTS PAST RESULTS. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN PERFORMANCE SHOWN ABOVE. 2 THIS PAGE INTENTIONALLY BLANK. PHOENIX MULTI-SECTOR SHORT TERM BOND FUND DISCLOSURE OF FUND EXPENSES (UNAUDITED) FOR THE SIX-MONTH PERIOD OF OCTOBER 1, 2007 TO MARCH 31, 2008 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 Table illustrates 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 OCTOBER 1, 2007 TO MARCH 31, 2008 Beginning Ending Expenses Account Account Annualized Paid Value Value Expense During October 1, 2007 March 31, 2008 Ratio Period* -------------------------------------------------------------------------------- MULTI-SECTOR SHORT TERM BOND FUND -------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $ 995.40 1.05% $5.24 Class B 1,000.00 995.00 1.55 7.73 Class C 1,000.00 996.30 1.30 6.49 Class T 1,000.00 993.80 1.80 8.97 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,019.68 1.05 5.32 Class B 1,000.00 1,017.15 1.55 7.85 Class C 1,000.00 1,018.42 1.30 6.58 Class T 1,000.00 1,015.89 1.80 9.11 * Expenses are equal to the Fund's annualized expense ratio 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 366 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 MULTI-SECTOR SHORT TERM BOND FUND SCHEDULE OF INVESTMENTS MARCH 31, 2008 (UNAUDITED) -------------------------------------------------------- SECTOR WEIGHTINGS* ------------------ Domestic Corporate Bonds 21% Non-Agency Mortgage-Backed Securities 19 Foreign Government Securities 17 Domestic Loan Agreements 8 Asset-Backed Securities 8 Agency Mortgage-Backed Securities 8 Foreign Corporate Bonds 7 Other (includes short-term investments) 12 *As a % of total investments. -------------------------------------------------------- PAR VALUE VALUE (000) (000) ---------- ---------- AGENCY MORTGAGE-BACKED SECURITIES--7.6% FHLMC 4.650% due 10/10/13 $ 4,785 $ 4,787 6.000% due 8/1/34 2,297 2,364 5.500% due 6/1/36 9,643 9,746 FNMA 5.500% due 1/1/17 859 881 6.000% due 5/1/17 245 253 5.500% due 8/1/17 144 147 4.500% due 4/1/18 1,787 1,786 5.000% due 4/1/18 1,658 1,682 5.000% due 10/1/19 3,022 3,061 5.500% due 2/1/20 1,059 1,084 5.500% due 3/1/20 5,089 5,209 5.500% due 4/1/20 1,767 1,809 5.000% due 6/1/20 4,909 4,967 5.000% due 8/1/20 6,178 6,250 6.000% due 12/1/32 328 338 5.500% due 2/1/33 728 737 5.500% due 5/1/34 2,835 2,869 6.000% due 8/1/34 3,977 4,095 5.500% due 10/1/34 2,637 2,669 6.000% due 10/1/34 3,863 3,971 5.500% due 11/1/34 5,165 5,228 6.000% due 11/1/34 2,800 2,878 5.500% due 12/1/34 1,709 1,726 5.500% due 1/1/35 6,502 6,580 PAR VALUE VALUE (000) (000) ---------- ---------- 5.500% due 2/1/35 $ 3,162 $ 3,200 5.500% due 3/1/35 3,206 3,243 5.500% due 4/1/35 3,609 3,652 6.500% due 8/1/36 10,466 10,850 6.000% due 10/1/36 5,911 6,063 6.000% due 1/1/37 6,686 6,857 FNMA 04-W6, 1A4 5.500% due 7/25/34 9,945 9,601 FNMA 05-57, CK 5.000% due 7/25/35 3,682 3,692 FNMA 05-65, DK 5.000% due 8/25/35 2,800 2,809 FNMA 05-65, PJ 5.000% due 8/25/35 4,934 4,966 FNMA 05-74, AG 5.000% due 9/25/35 2,313 2,322 FNMA 05-80, AD 5.500% due 9/25/35 4,336 4,363 GNMA 6.500% due 7/15/31 56 58 6.500% due 8/15/31 143 149 6.500% due 11/15/31 105 110 6.500% due 2/15/32 71 74 6.500% due 4/15/32 333 347 -------------------------------------------------------------------- TOTAL AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $135,779) 137,473 -------------------------------------------------------------------- See Notes to Financial Statements 6 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) ---------- ---------- AGENCY NON-MORTGAGE-BACKED SECURITIES--2.3% FHLB 6.000% due 6/29/22 $ 8,995 $ 9,457 FHLMC 5.200% due 3/5/19 20,010 20,364 FNMA 6.000% due 3/13/23 11,875 11,949 -------------------------------------------------------------------- TOTAL AGENCY NON-MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $40,396) 41,770 -------------------------------------------------------------------- MUNICIPAL BONDS--6.2% CALIFORNIA--0.1% Fresno County Pension Obligation Taxable (FGIC Insured) 6.060% due 8/15/09 1,915 1,969 ---------- COLORADO--0.6% Colorado Department of Transportation (AMBAC Insured) 6.000% due 6/15/11 9,675 10,497 ---------- CONNECTICUT--0.2% Mashantucket Western Pequot Tribe Taxable Series A 144A (MBIA Insured) 6.910% due 9/1/12(b) 3,000 3,207 ---------- GEORGIA--1.0% State of Georgia Series C 5.250% due 7/1/16 4,845 5,162 5.250% due 7/1/18 6,940 7,395 State of Georgia Unrefunded Balance Series B 5.000% due 5/1/21 5,080 5,510 ---------- 18,067 ---------- KENTUCKY--0.4% Kentucky State Property & Buildings Commission (FSA Insured) 5.250% due 10/1/13 5,750 6,370 ---------- MARYLAND--0.4% State of Maryland 5.000% due 8/1/10 7,385 7,841 ---------- 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 $ 7,443 ---------- MISSOURI--0.2% Missouri State Highways & Transit Commission State Road Revenue 5.000% due 5/1/16 2,725 2,996 ---------- NEW YORK--0.4% New York State Dormitory Authority Higher Education Taxable Series B 3.350% due 12/15/09 2,500 2,493 Sales Tax Asset Receivable Corp. Taxable Series B (FGIC Insured) 3.830% due 10/15/09 5,000 5,002 ---------- 7,495 ---------- PENNSYLVANIA--0.5% Philadelphia School District Taxable Series C (FSA Insured) 4.110% due 7/1/08 2,470 2,473 4.200% due 7/1/09 2,570 2,587 4.290% due 7/1/10 2,255 2,284 4.430% due 7/1/11 1,015 1,032 ---------- 8,376 ---------- SOUTH DAKOTA--0.0% South Dakota State Educational Enhancement Funding Corp. Taxable Series A 6.720% due 6/1/25 144 145 ---------- TEXAS--1.7% City of Austin Public Property Commission 5.000% due 9/1/17 6,300 6,893 Houston Independent School District (FSA Insured) 5.500% due 7/15/18 9,675 10,568 State of Texas Public Finance Authority 5.000% due 10/1/12 12,950 14,054 ---------- 31,515 ---------- See Notes to Financial Statements 7 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) ---------- ---------- VIRGINIA--0.2% Tobacco Settlement Financing Corp. Taxable Series A-1 6.706% due 6/1/46 $ 5,000 $ 4,536 ---------- WASHINGTON--0.1% Washington State Housing Trust Fund Taxable Series T 5.000% due 7/1/08 1,000 1,004 ---------- -------------------------------------------------------------------- TOTAL MUNICIPAL BONDS (IDENTIFIED COST $110,054) 111,461 -------------------------------------------------------------------- ASSET-BACKED SECURITIES--7.9% AmeriCredit Automobile Receivables Trust 06-1, E 144A 6.620% due 5/6/13(b) 1,588 1,585 AmeriCredit Automobile Receivables Trust 06-RM A2 5.420% due 8/8/11 6,695 6,622 Amerifirst Home Improvement Finance Trust 06-1 6.818% due 7/17/17(c) 4,504 4,504 Banc of America Securities Auto Trust 06-G1 B 5.340% due 2/18/11 4,855 4,937 Bayview Financial Acquisition Trust 06-B, 1A2 5.800% due 4/28/36(c) 4,000 3,862 Bear Stearns Structured Products, Inc. 05-20N, B 144A 6.099% due 10/25/45(b) (c) 5,000 4,145 Bombardier Capital Mortgage Securitization Corp. 99-A, A3 5.980% due 1/15/18(c) 3,072 2,899 Capital Auto Receivables Asset Trust 06-1, D 144A 7.160% due 1/15/13(b) 2,000 2,047 Capital One Auto Finance Trust 06-A, A3 5.330% due 11/15/10 2,438 2,417 Carmax Auto Owner Trust 05-1, C 4.820% due 10/15/11 4,135 4,143 Chase Funding Mortgage Loan Asset-Backed Certificates 04-1, 1A4 4.111% due 8/25/30 3,729 3,646 PAR VALUE VALUE (000) (000) ---------- ---------- Citicorp Residential Mortgage Securities, Inc. 07-2, A4 6.538% due 6/25/37(c) $ 5,000 $ 4,657 Conseco Finance Securitizations Corp. 01-3, A4 6.910% due 5/1/33(c) 13,421 13,962 Conseco Finance Securitizations Corp. 02-2, A2 6.030% due 3/1/33(c) 2,203 2,235 Credit Based Asset Servicing and Securitization LLC 07-CB1, AF2 5.721% due 1/25/37(c) 5,000 4,667 Dunkin Securitization 06-1, M1 144A 8.285% due 6/20/31(b) 6,345 5,550 GMAC Mortgage Corp. Loan Trust 05-HE2, A3 4.622% due 11/25/35(c) 1,667 1,581 Great America Leasing Receivables 05-1, A4 144A 4.970% due 8/20/10(b) 6,700 6,747 Green Tree Financial Corp. 99-2, M2 7.210% due 12/1/30(c) 2,247 319 GSAMP Trust 06-S4, M6 3.799% due 5/25/36(c) (u) 10,026 1 Home Equity Asset Trust 06-7, A 144A 6.000% due 2/25/37(b) (t) 2,119 21 Hyundai Auto Receivables Trust 06-A, D 5.520% due 11/15/12 3,369 3,360 IndyMac Manufactured Housing Contract 98-1, A3 6.370% due 9/25/28 2,488 2,495 Lehman XS Net Interest Margin 06-GPM7, A1 144A 6.250% due 12/28/46(b) 504 504 Long Grove Collateral Loan Obligation Ltd. 04-1A, C 144A 5.493% due 5/25/16(b) (c) 1,600 1,280 Long Grove Collateral Loan Obligation Ltd. 04-1A, D 144A 9.843% due 5/25/16(b) (c) 500 428 See Notes to Financial Statements 8 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) ---------- ---------- Merrill Auto Trust Securitization 07-1, B 5.790% due 12/15/13 $ 6,978 $ 6,867 Renaissance Home Equity Loan Trust 05-3, AF4 5.140% due 11/25/35(c) 5,380 5,059 Renaissance Home Equity Loan Trust 06-2, AF4 6.115% due 8/25/36(c) 5,640 4,953 Renaissance Net Interest Margin Trust 07-2, N 144A 8.353% due 6/25/37(b) 1,890 1,040 Residential Funding Mortgage Securities 06-HI2, A3 5.790% due 2/25/36 1,510 1,177 Residential Funding Mortgage Securities II, Inc. 04-HI3, A4 4.630% due 1/25/20 3,396 3,225 Residential Funding Mortgage Securities II, Inc. 05-HI2, A3 4.460% due 5/25/35 2,028 2,022 Residential Funding Mortgage Securities II, Inc. 07-HI1, A2 5.640% due 3/25/37 10,000 8,544 Residential Funding Mortgage Securities II, Inc. 07-HSA3, AI2 5.890% due 5/25/37(c) 7,340 6,399 Soundview Home Equity Loan Trust 05-CTX1, A3 5.322% due 11/25/35(c) 3,900 3,870 Structured Asset Securities Corp. 05-7XS, 1A2B 5.270% due 4/25/35(c) 7,161 7,080 Vanderbuilt Acquisition Loan Trust 02-1, A3 5.700% due 9/7/23(c) 161 161 Wachovia Auto Loan Owner Trust 06-2A E 144A 7.050% due 5/20/14(b) 5,000 3,298 -------------------------------------------------------------------- TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $163,994) 142,309 -------------------------------------------------------------------- PAR VALUE VALUE (000) (000) ---------- ---------- DOMESTIC CORPORATE BONDS--20.4% AEROSPACE & DEFENSE--0.3% L-3 Communications Corp. 7.625% due 6/15/12 $ 4,445 $ 4,573 L-3 Communications Corp. Series B 6.375% due 10/15/15 1,500 1,474 ---------- 6,047 ---------- AGRICULTURAL PRODUCTS--0.3% Cargill, Inc. 144A 5.600% due 9/15/12(b) 4,845 4,965 ---------- AIRLINES--2.2% American Airlines, Inc. 01-1 6.977% due 5/23/21 17,123 15,239 Continental Airlines, Inc. 98-1A 6.648% due 9/15/17 2,403 2,367 Delta Air Lines, Inc. 00-1 7.379% due 5/18/10 12,605 12,416 JetBlue Airways Corp. 04-2 6.165% due 11/15/08(c) 1,781 1,763 United Airlines, Inc. 00-2 7.032% due 10/1/10 4,097 4,057 United Airlines, Inc. 01-1 6.071% due 3/1/13 4,336 4,293 ---------- 40,135 ---------- APPLICATION SOFTWARE--0.1% Intuit, Inc. 5.750% due 3/15/17 1,393 1,349 ---------- ASSET MANAGEMENT & CUSTODY BANKS--0.3% Janus Capital Group, Inc. 6.250% due 6/15/12 2,663 2,706 Nuveen Investment, Inc. 144A 10.500% due 11/15/15(b) 800 690 Nuveen Investments, Inc. 5.000% due 9/15/10 2,370 2,062 ---------- 5,458 ---------- AUTOMOBILE MANUFACTURERS--0.2% Daimler Finance North America LLC 6.500% due 11/15/13 3,390 3,573 ---------- BROADCASTING & CABLE TV--0.7% Comcast Cable Holdings LLC 7.875% due 8/1/13 3,800 4,166 See Notes to Financial Statements 9 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) ---------- ---------- BROADCASTING & CABLE TV--(CONTINUED) COX Communications, Inc. 3.875% due 10/1/08 $ 1,000 $ 999 4.625% due 6/1/13 5,620 5,398 Viacom, Inc. 5.750% due 4/30/11 2,700 2,729 ---------- 13,292 ---------- BUILDING PRODUCTS--0.1% Esco Corp. 144A 8.625% due 12/15/13(b) 1,725 1,682 ---------- CASINOS & GAMING--0.3% Harrah's Operating Co., Inc. 5.500% due 7/1/10 1,500 1,320 MGM MIRAGE 8.500% due 9/15/10 2,835 2,941 Seminole Hard Rock Entertainment, Inc./Seminole Hard Rock International LLC 144A 5.300% due 3/15/14(b) (c) 767 612 ---------- 4,873 ---------- CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--0.1% Terex Corp. 7.375% due 1/15/14 2,010 2,000 ---------- CONSUMER FINANCE--2.4% Ford Motor Credit Co. LLC 6.625% due 6/16/08 1,100 1,087 5.625% due 10/1/08 12,490 12,281 9.875% due 8/10/11 3,480 3,105 7.127% due 1/13/12(c) 2,000 1,481 8.708% due 4/15/12(c) 3,389 3,186 GMAC LLC 3.749% due 9/23/08(c) 2,000 1,887 4.315% due 5/15/09(c) 4,815 4,116 6.875% due 9/15/11 4,205 3,221 6.750% due 12/1/14 900 638 Hertz Corp. (The) 8.875% due 1/1/14 2,595 2,472 HSBC Finance Corp. 4.125% due 11/16/09 2,000 1,969 MBNA Corp. 4.625% due 9/15/08 2,300 2,312 SLM Corp. 5.560% due 2/1/10(c) 8,000 6,480 ---------- 44,235 ---------- PAR VALUE VALUE (000) (000) ---------- ---------- DATA PROCESSING & OUTSOURCED SERVICES--0.3% Convergys Corp. 4.875% due 12/15/09 $ 3,000 $ 3,074 First Data Corp. 144A 9.875% due 9/24/15(b) 3,000 2,471 ---------- 5,545 ---------- DISTILLERS & VINTNERS--0.1% Constellation Brands, Inc. 8.375% due 12/15/14 1,749 1,810 ---------- DIVERSIFIED BANKS--0.1% Wells Fargo & Co. 3.125% due 4/1/09 1,500 1,484 4.375% due 1/31/13 800 796 ---------- 2,280 ---------- DIVERSIFIED METALS & MINING--0.1% Freeport-McMoRan Copper & Gold, Inc. (Indonesia) 6.875% due 2/1/14(d) 2,170 2,235 ---------- ELECTRIC UTILITIES--1.0% Allegheny Energy Supply 144A 8.250% due 4/15/12(b) 1,860 2,018 Consumers Energy Co. Series H 4.800% due 2/17/09 2,000 2,013 Entergy Gulf States, Inc. 3.600% due 6/1/08 3,500 3,491 Midwest Generation LLC Series B 8.560% due 1/2/16 1,594 1,730 PPL Capital Funding Trust I Series A 4.330% due 3/1/09 4,250 4,274 PSE&G Energy Holdings Co. 8.500% due 6/15/11 2,250 2,391 Texas Competitive Electric Holdings Co. LLC 144A 10.250% due 11/1/15(b) 1,390 1,392 ---------- 17,309 ---------- ELECTRICAL COMPONENTS & EQUIPMENT--0.2% General Cable Corp. 5.725% due 4/1/15(c) 3,375 2,928 ---------- See Notes to Financial Statements 10 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) ---------- ---------- ENVIRONMENTAL & FACILITIES SERVICES--0.1% Allied Waste North America, Inc. Series B 5.750% due 2/15/11 $ 2,200 $ 2,162 ---------- FOOD RETAIL--0.3% Kroger Co. (The) 8.050% due 2/1/10 1,860 1,983 Safeway, Inc. 4.125% due 11/1/08 2,000 2,007 6.500% due 11/15/08 1,000 1,015 ---------- 5,005 ---------- HEALTH CARE FACILITIES--0.2% HCA, Inc. 9.125% due 11/15/14 1,739 1,796 9.250% due 11/15/16 1,825 1,898 ---------- 3,694 ---------- HEALTH CARE SERVICES--0.1% Medco Health Solutions, Inc. 7.250% due 8/15/13 1,000 1,124 ---------- HOMEBUILDING--0.1% Horton (D.R.), Inc. 4.875% due 1/15/10 2,500 2,294 ---------- HOTELS, RESORTS & CRUISE LINES--0.1% Starwood Hotels & Resort Worldwide, Inc. 6.250% due 2/15/13 2,815 2,812 ---------- INDUSTRIAL CONGLOMERATES--0.2% Textron Financial Corp. 5.125% due 11/1/10 3,865 4,020 ---------- INDUSTRIAL GASES--0.1% Air Products & Chemicals, Inc. 4.150% due 2/1/13 1,912 1,914 ---------- INDUSTRIAL MACHINERY--0.0% SPX Corp. 144A 7.625% due 12/15/14(b) 250 258 ---------- INTEGRATED OIL & GAS--0.1% Texaco Capital, Inc. 5.500% due 1/15/09 1,035 1,051 ---------- PAR VALUE VALUE (000) (000) ---------- ---------- INTEGRATED TELECOMMUNICATION SERVICES--1.0% AT&T Corp. 7.300% due 11/15/11 $ 3,015 $ 3,266 Embarq Corp. 6.738% due 6/1/13 5,200 5,028 Qwest Capital Funding, Inc. 7.250% due 2/15/11 4,000 3,820 Qwest Corp. 7.875% due 9/1/11 5,220 5,207 ---------- 17,321 ---------- INVESTMENT BANKING & BROKERAGE--1.8% Bear Stearns Cos., Inc. (The) 7.250% due 2/1/18 4,365 4,511 Goldman Sachs Group, Inc. (The) 4.750% due 7/15/13 3,225 3,136 5.950% due 1/18/18 2,759 2,732 Lehman Brothers Holdings, Inc. 6.000% due 7/19/12 5,485 5,414 5.625% due 1/24/13 1,909 1,856 Merrill Lynch & Co., Inc. (Brazil) 10.710% due 3/8/17 14,600(g) 7,280 Morgan Stanley 144A (Brazil) 10.090% due 5/3/17(b) 10,525(g) 5,039 Piper Jaffray Equipment Trust Securities 144A 6.000% due 9/10/11(b) 3,024 2,691 ---------- 32,659 ---------- LIFE & HEALTH INSURANCE--0.1% Principal Life Global Funding I 144A 4.400% due 10/1/10(b) 1,500 1,529 ---------- LIFE SCIENCES TOOLS & SERVICES--0.2% Fisher Scientific International, Inc. 6.750% due 8/15/14 985 1,005 6.125% due 7/1/15 2,125 2,116 ---------- 3,121 ---------- MORTGAGE REITS--0.2% iStar Financial, Inc. Series B 5.950% due 10/15/13 5,725 4,179 ---------- MOVIES & ENTERTAINMENT--0.1% Time Warner, Inc. 6.875% due 5/1/12 1,500 1,549 ---------- See Notes to Financial Statements 11 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 $ 1,994 ---------- MULTI-UTILITIES--0.1% Pacific Gas & Electric Co. 3.600% due 3/1/09 2,000 1,995 ---------- OFFICE SERVICES & SUPPLIES--0.2% Steelcase, Inc. 6.500% due 8/15/11 2,825 3,027 ---------- OIL & GAS EQUIPMENT & SERVICES--0.1% Halliburton Co. 5.500% due 10/15/10 1,225 1,290 Helix Energy Solutions Group, Inc. 144A 9.500% due 1/15/16(b) 692 695 ---------- 1,985 ---------- 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 4,851 XTO Energy, Inc. 5.900% due 8/1/12 1,980 2,064 ---------- 7,942 ---------- OIL & GAS REFINING & MARKETING--0.6% Frontier Oil Corp. 6.625% due 10/1/11 2,230 2,213 Tesoro Corp. 6.250% due 11/1/12 4,340 4,112 Valero Energy Corp. 4.750% due 6/15/13 4,200 4,185 ---------- 10,510 ---------- OIL & GAS STORAGE & TRANSPORTATION--0.8% Buckeye Partners LP 6.050% due 1/15/18 854 872 Knight, Inc. 6.500% due 9/1/12 3,545 3,612 ONEOK Partners LP 5.900% due 4/1/12 980 1,018 Pacific Energy Partners LP/Pacific Energy Finance Corp. 7.125% due 6/15/14 2,900 3,071 PAR VALUE VALUE (000) (000) ---------- ---------- OIL & GAS STORAGE & TRANSPORTATION--(CONTINUED) Transcontinental Gas Pipe Line Corp. Series B 7.000% due 8/15/11 $ 3,865 $ 4,083 Williams Cos., Inc. (The) 7.125% due 9/1/11 2,500 2,656 ---------- 15,312 ---------- OTHER DIVERSIFIED FINANCIAL SERVICES--1.1% Bank of America Corp. 7.400% due 1/15/11 3,815 4,085 Erac USA Finance Co. 144A(b) 5.300% due 11/15/08 2,385 2,396 5.800% due 10/15/12 805 767 General Electric Capital Corp. 8.125% due 5/15/12 3,875 4,416 International Lease Finance Corp. 4.750% due 1/13/12 1,120 1,084 JP Morgan & Co., Inc. 6.250% due 1/15/09 4,900 4,990 MassMutual Global Funding II 144A 3.500% due 3/15/10(b) 1,750 1,783 ---------- 19,521 ---------- PAPER PACKAGING--0.2% Jefferson Smurfit Corp. 8.250% due 10/1/12 1,595 1,445 Packaging Corp. of America 4.375% due 8/1/08 3,000 3,002 ---------- 4,447 ---------- PAPER PRODUCTS--0.5% Bowater, Inc. 5.800% due 3/15/10(c) 4,850 3,516 Georgia Pacific Corp. 7.700% due 6/15/15 2,820 2,665 Rock-Tenn Co. 144A 9.250% due 3/15/16(b) 125 130 Verso Paper Holdings LLC and Verso Paper, Inc. Series B 6.989% due 8/1/14(c) 2,570 2,185 ---------- 8,496 ---------- PROPERTY & CASUALTY INSURANCE--0.1% Berkley (WR) Corp. 5.125% due 9/30/10 2,000 2,031 ---------- See Notes to Financial Statements 12 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) ---------- ---------- REAL ESTATE MANAGEMENT & DEVELOPMENT--0.3% Colonial Realty LP 4.800% due 4/1/11 $ 5,000 $ 4,733 ---------- REGIONAL BANKS--0.1% KeyBank NA 5.700% due 8/15/12 1,800 1,832 ---------- RETAIL REITS--0.5% Kimco Realty Corp. 4.820% due 8/15/11 1,945 1,909 Simon Property Group LP 4.600% due 6/15/10 3,825 3,796 5.600% due 9/1/11 2,775 2,776 ---------- 8,481 ---------- SPECIALIZED FINANCE--0.4% CIT Group, Inc. 4.750% due 12/15/10 4,295 3,419 Yankee Acquisition Corp. Series B 8.500% due 2/15/15 3,740 3,039 ---------- 6,458 ---------- SPECIALIZED REITS--0.7% Host Hotels & Resorts LP 6.875% due 11/1/14 4,245 4,064 Nationwide Health Properties, Inc. 6.250% due 2/1/13 4,825 4,911 Trustreet Properties, Inc. 7.500% due 4/1/15 1,215 1,323 Ventas Realty LP/Ventas Capital Corp. 6.750% due 6/1/10 2,180 2,194 ---------- 12,492 ---------- SPECIALTY CHEMICALS--0.0% Lubrizol Corp. 4.625% due 10/1/09 875 878 ---------- STEEL--0.1% Steel Dynamics, Inc. 144A 7.375% due 11/1/12(b) 1,630 1,654 ---------- THRIFTS & MORTGAGE FINANCE--0.3% Countrywide Home Loans, Inc. 5.625% due 7/15/09 1,750 1,606 PAR VALUE VALUE (000) (000) ---------- ---------- THRIFTS & MORTGAGE FINANCE--(CONTINUED) Residential Capital LLC 8.125% due 11/21/08 $ 1,920 $ 1,334 8.000% due 2/22/11 4,555 2,255 ---------- 5,195 ---------- TOBACCO--0.2% Philip Morris Capital Corp. 7.500% due 7/16/09 3,500 3,551 ---------- WIRELESS TELECOMMUNICATION SERVICES--0.1% Nextel Communications, Inc. Series D 7.375% due 8/1/15 2,095 1,613 ---------- -------------------------------------------------------------------- TOTAL DOMESTIC CORPORATE BONDS (IDENTIFIED COST $385,193) 368,555 -------------------------------------------------------------------- NON-AGENCY MORTGAGE-BACKED SECURITIES--19.1% Adjustable Rate Mortgage Trust 05-3, 2A1 4.691% due 7/25/35(c) 3,204 2,691 American General Mortgage Loan Trust 06-1, A2 144A 4.691% due 12/25/35(b) (c) 8,392 8,421 American Home Mortgage Assets 07-2, M4 3.129% due 3/25/47(c) (s) 5,974 2,369 American Tower Trust L 07-1A, C 144A 5.615% due 4/15/37(b) 3,685 3,222 Asset Securitization Corp. 96-D3, A1C 7.400% due 10/13/26 195 198 Banc of America Alternative Loan Trust 06-9, A1 6.000% due 1/25/37 12,322 12,006 Bear Stearns Commercial Mortgage Securities 04-ESA, J 144A 5.817% due 5/14/16(b) 8,510 8,834 Bear Stearns Structured Products, Inc. 04-15, A2 144A 0% due 11/27/34(b) 1,257 1,221 Bear Stearns Structured Products, Inc. 05-10 144A 5.106% due 4/26/35(b) (c) 3,142 2,978 See Notes to Financial Statements 13 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) ---------- ---------- Bear Stearns Structured Products, Inc. 05-20N, A 144A 6.099% due 10/25/45(b) (c) $ 1,994 $ 1,963 Bear Stearns Structured Products, Inc. 06-2, 2A1 144A 5.654% due 3/27/46(b) (c) 1,680 1,627 Chase Mortgage Finance Corp. 04-S1, M 5.098% due 2/25/19(c) 1,937 1,742 Chase Mortgage Finance Corp. 04-S3, 3A1 6.042% due 3/25/34 3,908 3,817 Chase Mortgage Finance Corp. 06-A1, 4A1 6.044% due 9/25/36(c) 11,507 11,698 Citicorp Mortgage Securities, Inc. 06-7, 1A1 6.000% due 12/25/36 10,405 10,164 Citigroup Mortgage Loan Trust, Inc. 06-FX1, A4 6.081% due 10/25/36(c) 7,000 6,586 Citigroup Mortgage Loan Trust, Inc. 06-WF1, A2B 5.536% due 3/25/36(c) 1,532 1,542 Countrywide Home Loan Mortgage Pass-Through Trust 02-34, B2 5.750% due 1/25/33 1,624 1,427 Countrywide Home Loan Mortgage Pass-Through Trust 02-36, B2 6.000% due 1/25/33 1,640 1,453 Countrywide Home Loan Mortgage Pass-Through Trust 04-13, 1A1 5.500% due 8/25/34 5,461 5,428 Countrywide Home Loan Mortgage Pass-Through Trust 07-1, A2 6.000% due 3/25/37 14,386 13,911 Credit Suisse First Boston Mortgage Securities Corp. 04-1, 1A1 5.750% due 2/25/34 1,481 1,406 Credit Suisse First Boston Mortgage Securities Corp. 05-12, 6A1 6.000% due 1/25/36 4,722 4,129 PAR VALUE VALUE (000) (000) ---------- ---------- Credit Suisse First Boston Mortgage Securities Corp. 98-C1, B 6.590% due 5/17/40 $ 1,200 $ 1,200 Credit-Based Asset Servicing and Securitization LLC 05-CB6, A3 5.120% due 7/25/35(c) 6,000 5,900 Crown Castle Towers LLC 05-1A, AFX 144A 4.643% due 6/15/35(b) 6,000 5,887 Crown Castle Towers LLC 06-1A, C 144A 5.470% due 11/15/36(b) 5,000 4,646 DLJ Commercial Mortgage Corp. 98-CF2, A1B 6.240% due 11/12/31 96 96 First Horizon Asset Securities, Inc. 03-2, 1A12 5.750% due 4/25/33 3,892 3,591 First Horizon Asset Securities, Inc. 05-AR1, 2A1 5.005% due 4/25/35(c) 3,357 3,362 First Plus Home Loan Trust 97-3, M2 7.520% due 11/10/23 37 37 First Union - Lehman Brothers - Bank of America 98-C2, A2 6.560% due 11/18/35 1,646 1,641 FMAC Loan Receivables Trust 98-CA, A2 144A 6.660% due 9/15/20(b) 5,138 4,779 Global Signal Trust 06-1, A2 144A 5.450% due 2/15/36(b) 6,000 5,882 GMAC Commercial Mortgage Securities, Inc. 04-C3, A4 4.547% due 12/10/41 4,820 4,655 GMAC Mortgage Corp. Loan Trust 06-HE2, A3 6.320% due 5/25/36 11,335 9,335 GS Mortgage Securities Corp. II 07-EOP, G 144A 3.600% due 3/6/20(b) (c) 5,840 4,964 GS Mortgage Securities Corp. II 07-EOP, H 144A 3.730% due 3/6/20(b) (c) 1,850 1,573 See Notes to Financial Statements 14 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) ---------- ---------- GS Mortgage Securities Corp. II 99-C1, A2 6.110% due 11/18/30(c) $ 85 $ 85 GSR Mortgage Loan Trust 05-AR6, 3A1 4.560% due 9/25/35(c) 5,981 5,973 Harborview Mortgage Loan Trust 05-15, B8 4.286% due 10/20/45(c) (s) 4,633 1,946 Harborview Mortgage Loan Trust 05-9, B10 4.286% due 6/20/35(c) 4,865 3,843 Harborview Net Interest Margin Corp. 06-12, N1 144A 6.367% due 12/19/36(b) 498 497 IndyMac Index Mortgage Loan Trust 06-AR25, 3A1 6.376% due 9/25/36(c) 4,823 3,658 IndyMac Index Mortgage Loan Trust 07-AR2, B1 5.870% due 6/25/37(c) 4,737 2,558 JPMorgan Chase Commercial Mortgage Securities Corp. 01-CIBC, A3 6.260% due 3/15/33 481 490 JPMorgan Mortgage Trust 05-S3, 2A2 5.500% due 1/25/21 1,149 1,133 JPMorgan Mortgage Trust 06-A1, B1 5.400% due 2/25/36(c) 7,685 6,653 Lehman Brothers - UBS Commercial Mortgage Trust 07-C2, A2 5.303% due 2/15/40 1,477 1,442 Lehman Brothers - UBS Commercial Mortgage Trust 07-C6, A2 5.845% due 7/15/40 11,125 10,909 MASTR Alternative Net Interest Margin 06-6, N1 144A 3.606% due 9/26/46(b) (c) (t) 1,141 57 MASTR Alternative Net Interest Margin Trust 05-CW1A, N1 144A 6.750% due 12/26/35(b) (t) 548 361 MASTR Resecuritization Trust 04-2 144A 5.250% due 3/28/34(b) 3,717 3,121 PAR VALUE VALUE (000) (000) ---------- ---------- MASTR Resecuritization Trust 04-3 144A 5.000% due 3/28/34(b) $ 1,989 $ 1,636 MASTR Resecuritization Trust 05-1 144A 5.000% due 10/28/34(b) 1,904 1,709 MASTR Resecuritization Trust 05-2 144A 4.750% due 3/28/34(b) 1,913 1,700 MASTR Resecuritization Trust 05-4CI, N2 144A 5.606% due 4/26/45(b) (c) (t) 3,250 1,300 Merrill Lynch Mortgage Trust 04-KEY2, A3 4.615% due 8/12/39 4,000 3,843 Merrill Lynch/Countrywide Commercial Mortgage Investors, Inc. 06-3, 2A1 6.085% due 10/25/36(c) 6,334 6,070 Morgan Stanley Mortgage Loan Trust 05-5AR, 4A1 5.528% due 9/25/35(c) 2,282 1,792 PNC Mortgage Acceptance Corp. 00-C2, A2 7.300% due 10/12/33(c) 230 238 Prudential Securities Secured Financing Corp. 144A 6.074% due 11/1/31(b) 5,000 4,874 Residential Funding Mortgage Securities I, Inc. 05-SA1, 2A 4.843% due 3/25/35(c) 2,915 2,775 Residential Funding Mortgage Securities I, Inc. 06-S4, A2 6.000% due 4/25/36 8,179 8,112 SBA Commercial Mortgage Backed Securities Trust 06-1A, B 144A 5.451% due 11/15/36(b) 2,875 2,631 Structured Asset Securities Corp. 03-32, 1A1 5.198% due 11/25/33(c) 4,455 4,075 Structured Asset Securities Corp. 05-1, 6A1 6.000% due 2/25/35 4,321 3,778 Wachovia Bank Commercial Mortgage Trust 2004-C12, A2 5.001% due 7/15/41 12,400 12,323 Wachovia Mortgage Loan Trust LLC 06-A, B1 5.415% due 5/20/36(c) 3,440 2,911 See Notes to Financial Statements 15 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) ---------- ---------- Washington Mutual Mortgage Pass Through Certificates 00-1, M3 4.849% due 1/25/40(c) $ 85 $ 83 Washington Mutual Mortgage Pass Through Certificates 06-AR16, 1A1 5.605% due 12/25/36(c) 6,794 6,431 Wells Fargo Mortgage Backed Securities Trust 04-R, 2A1 4.368% due 9/25/34(c) 5,018 4,917 Wells Fargo Mortgage Backed Securities Trust 05-14, 2A1 5.500% due 12/25/35 10,865 10,587 Wells Fargo Mortgage Backed Securities Trust 05-5, 1A1 5.000% due 5/25/20 6,904 6,729 Wells Fargo Mortgage Backed Securities Trust 05-AR10, 2A16 4.110% due 6/25/35(c) 7,542 7,391 Wells Fargo Mortgage Backed Securities Trust 05-AR16, 6A3 5.000% due 10/25/35(c) 8,011 7,804 Wells Fargo Mortgage Backed Securities Trust 06-11, A8 6.000% due 9/25/36 5,583 5,607 Wells Fargo Mortgage Backed Securities Trust 06-AR2, B1 5.128% due 3/25/36(c) 13,947 11,906 Wells Fargo Mortgage Backed Securities Trust 07-AR3, A4 6.063% due 4/25/37(c) 15,296 14,187 -------------------------------------------------------------------- TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $375,544) 344,516 -------------------------------------------------------------------- FOREIGN GOVERNMENT SECURITIES--16.9% ARGENTINA--0.5% Republic of Argentina 8.280% due 8/3/12(c) 11,009 9,328 ---------- AUSTRALIA--2.7% Commonwealth of Australia Series 909 7.500% due 9/15/09 52,441(f) 48,719 ---------- PAR VALUE VALUE (000) (000) ---------- ---------- BRAZIL--3.6% Federative Republic of Brazil 10.500% due 7/14/14 $ 9,135 $ 11,624 7.875% due 3/7/15 1,850 2,095 12.500% due 1/5/16 74,191(g) 45,474 12.500% due 1/5/22 8,000(g) 4,990 ---------- 64,183 ---------- COLOMBIA--0.5% Republic of Colombia 9.750% due 4/23/09 3,500 3,754 12.000% due 10/22/15 7,975,000(i) 4,552 ---------- 8,306 ---------- COSTA RICA--0.2% Republic of Costa Rica 144A 6.548% due 3/20/14(b) 4,000 4,160 ---------- GERMANY--0.9% Federal Republic of Germany 144A 3.250% due 4/17/09(b) 9,820(j) 15,417 ---------- INDONESIA--0.3% Republic of Indonesia Series FR-23 11.000% due 12/15/12 44,100,000(k) 4,897 ---------- MALAYSIA--0.5% Malaysian Government Series 4-05 3.756% due 4/28/11 30,375(l) 9,582 ---------- MEXICO--0.4% United Mexican States 6.625% due 3/3/15 5,815 6,498 ---------- NEW ZEALAND--1.0% Commonwealth of New Zealand Series 708 6.000% due 7/15/08 23,694(m) 18,539 ---------- NORWAY--1.2% Kingdom of Norway 5.500% due 5/15/09 113,835(n) 22,444 ---------- See Notes to Financial Statements 16 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) ---------- ---------- PHILIPPINES--0.9% Republic of Philippines 9.875% due 3/16/10 $ 8,610 $ 9,471 8.375% due 2/15/11 6,135 6,749 ---------- 16,220 ---------- RUSSIA--0.0% Russian Federation RegS 8.250% due 3/31/10(e) 675 714 ---------- SINGAPORE--0.5% Singapore Government 2.500% due 10/1/12 13,100(p) 9,920 ---------- SWEDEN--0.2% Kingdom of Sweden Series 1043 5.000% due 1/28/09 26,705(q) 4,523 ---------- TRINIDAD AND TOBAGO--0.2% Republic of Trinidad and Tobago RegS 9.875% due 10/1/09(e) 3,000 3,271 ---------- TURKEY--1.7% Republic of Turkey 0.000% due 5/6/09 23,125(r) 14,383 11.750% due 6/15/10 7,570 8,800 11.500% due 1/23/12 5,680 6,859 ---------- 30,042 ---------- VENEZUELA--1.6% Republic of Venezuela 8.500% due 10/8/14 11,675 10,858 9.250% due 9/15/27 2,000 1,905 Republic of Venezuela RegS 5.375% due 8/7/10(e) 18,062 16,680 ---------- 29,443 -------------------------------------------------------------------- TOTAL FOREIGN GOVERNMENT SECURITIES (IDENTIFIED COST $298,728) 306,206 -------------------------------------------------------------------- FOREIGN CORPORATE BONDS(d)--7.2% CANADA--0.5% Catalyst Paper Corp. Series D 8.625% due 6/15/11 4,000 3,330 European Investment Bank 144A 4.600% due 1/30/37(b) 3,645(h) 3,416 PAR VALUE VALUE (000) (000) ---------- ---------- CANADA--(CONTINUED) Rogers Wireless Communications, Inc. 8.000% due 12/15/12 $ 700 $ 728 Thomson Corp. (The) 4.250% due 8/15/09 1,000 999 ---------- 8,473 ---------- CHILE--0.5% Celulosa Arauco y Constitucion SA 7.750% due 9/13/11 4,780 5,293 Empresa Nacional de Electricidad SA 7.750% due 7/15/08 3,449 3,483 ---------- 8,776 ---------- GERMANY--0.2% Aries Vermoegensverwaltung GmbH 144A 7.750% due 10/25/09(b) 1,500(j) 2,501 Deutsche Telekom International Finance BV 8.000% due 6/15/10 1,000 1,070 ---------- 3,571 ---------- HONG KONG--0.1% Hutchison Whampoa International Ltd. 144A 5.450% due 11/24/10(b) 2,000 2,066 ---------- INDIA--0.3% ICICI Bank Ltd. 144A 5.750% due 11/16/10(b) 4,775 4,777 ---------- KAZAKHSTAN--0.0% Kazkommerts International BV RegS 8.000% due 11/3/15(e) 1,000 790 ---------- LUXEMBOURG--0.3% Evraz Securities SA 10.875% due 8/3/09 4,000 4,250 TNK-BP Finance SA 144A 7.500% due 3/13/13(b) 1,750 1,713 ---------- 5,963 ---------- See Notes to Financial Statements 17 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) ---------- ---------- MALAYSIA--0.2% Malaysia International Shipping Corporation Capital Ltd. 144A 5.000% due 7/1/09(b) $ 2,800 $ 2,851 ---------- MEXICO--0.4% Fideicomiso Petacalco Trust 144A 10.160% due 12/23/09(b) 2,896 2,990 Pemex Project Funding Master Trust 6.125% due 8/15/08 34 34 Pemex Project Funding Master Trust 144A 4.100% due 6/15/10(b) (c) 1,500 1,492 Vitro S.A.B. de C.V. 8.625% due 2/1/12 3,925 3,641 ---------- 8,157 ---------- NETHERLANDS--0.3% Majapahit Holding BV 144A 7.250% due 6/28/17(b) 2,250 2,149 NXP BV/NXP Funding LLC 7.008% due 10/15/13(c) 5,040 4,177 ---------- 6,326 ---------- POLAND--0.2% Telekomunikacja Polska SA Finance BV 144A 7.750% due 12/10/08(b) 2,700 2,782 ---------- QATAR--0.1% Ras Laffan Liquefied Natural Gas Co. Ltd. 144A 3.437% due 9/15/09(b) 1,461 1,470 ---------- RUSSIA--1.9% European Bank for Reconstruction & Development 6.000% due 2/14/12 193,000(o) 7,843 Gazprom International SA 144A 7.201% due 2/1/20(b) 2,568 2,620 Gazprom OAO (Gaz Capital SA) 144A(b) 6.212% due 11/22/16 10,405 9,625 6.510% due 3/7/22 3,235 2,883 PAR VALUE VALUE (000) (000) ---------- ---------- RUSSIA--(CONTINUED) OJSC AK Transneft (TransCapitalInvest Ltd.) 144A 5.670% due 3/5/14(b) $ 5,715 $ 5,311 Russian Agricultural Bank OJSC (RSHB Capital SA) 144A 6.299% due 5/15/17(b) 2,905 2,691 TNK-BP Finance SA RegS 6.125% due 3/20/12(e) 4,210 3,969 ---------- 34,942 ---------- SOUTH AFRICA--0.2% Sappi Pappier Holding AG 144A 6.750% due 6/15/12(b) 5,000 4,541 ---------- SOUTH KOREA--0.3% Export-Import Bank of Korea 4.500% due 8/12/09 1,355 1,360 Hynix Semiconductor, Inc. 144A 7.875% due 6/27/17(b) 400 286 Korea Development Bank 3.875% due 3/2/09 3,000 2,993 5.300% due 1/17/13 1,113 1,140 ---------- 5,779 ---------- SWITZERLAND--0.1% Petroplus Finance Ltd. 144A 6.750% due 5/1/14(b) 2,715 2,491 ---------- TURKEY--0.1% Bosphorus Financial Services Ltd. 144A 4.865% due 2/15/12(b) (c) 2,000 1,925 ---------- UKRAINE--0.2% NAK Naftogaz Ukrainy (Standard Bank London Holdings plc) 8.125% due 9/30/09 2,900 2,817 ---------- UNITED ARAB EMIRATES--0.4% Abu Dhabi National Energy Co. 144A 5.620% due 10/25/12(b) 6,730 6,856 ---------- UNITED KINGDOM--0.1% British Telecommunications plc 8.625% due 12/15/10 1,500 1,650 ---------- See Notes to Financial Statements 18 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) ---------- ---------- UNITED STATES--0.7% Canadian National Resources Ltd. 4.900% due 12/1/14 $ 2,916 $ 2,867 Invesco Ltd. 4.500% due 12/15/09 2,750 2,756 Nova Chemicals Corp. 7.863% due 11/15/13(c) 5,659 4,768 Tyco Electronic Group SA 144A 6.000% due 10/1/12(b) 1,515 1,553 ---------- 11,944 ---------- VENEZUELA--0.1% Corporacion Andina de Fomento 5.200% due 5/21/13 1,000 995 ---------- -------------------------------------------------------------------- TOTAL FOREIGN CORPORATE BONDS (IDENTIFIED COST $134,262) 129,942 -------------------------------------------------------------------- DOMESTIC CONVERTIBLE BONDS--0.1% PHARMACEUTICALS--0.1% Par Pharmaceutical Cos., Inc. 2.875% due 9/30/10 1,195 1,056 ---------- -------------------------------------------------------------------- TOTAL DOMESTIC CONVERTIBLE BONDS (IDENTIFIED COST $1,065) 1,056 -------------------------------------------------------------------- FOREIGN CREDIT LINKED NOTES--0.2% INDONESIA--0.2% Republic of Indonesia (Citigroup, Inc.) 11.867% due 6/15/09 4,025 3,547 ---------- -------------------------------------------------------------------- TOTAL FOREIGN CREDIT LINKED NOTES (IDENTIFIED COST $3,693) 3,547 -------------------------------------------------------------------- DOMESTIC LOAN AGREEMENTS--8.1% ADVERTISING--0.1% Lamar Media Corp. Tranche F 4.813% due 3/31/14(c) 925 902 ---------- AEROSPACE & DEFENSE--0.0% TransDigm, Inc. Tranche 4.700% due 6/23/13(c) 480 454 ---------- PAR VALUE VALUE (000) (000) ---------- ---------- APPAREL RETAIL--0.1% HBI Branded Apparel Ltd., Inc. Tranche 2 6.994% due 3/5/14(c) $ 1,885 $ 1,838 ---------- APPAREL, ACCESSORIES & LUXURY GOODS--0.1% Hanesbrands, Inc. Tranche B 5.005% due 9/5/13(c) 1,696 1,639 Totes Isotoner Corp. Tranche B 7.387% due 1/16/13(c) 473 414 ---------- 2,053 ---------- AUTOMOBILE MANUFACTURERS--0.4% Ford Motor Co. Tranche B 8.000% due 12/15/13(c) 4,596 3,786 General Motors Corp. Tranche B 7.056% due 11/29/13(c) 3,127 2,783 ---------- 6,569 ---------- BROADCASTING & CABLE TV--0.7% Charter Communications Operating LLC Tranche T 5.260% due 3/6/14(c) 4,928 4,175 CSC Holdings, Inc. Tranche A1 3.950% due 2/24/12(c) 598 561 DIRECTV Holdings LLC Tranche B 4.781% due 4/13/13(c) 555 535 Intelsat Corp. Tranche B2 5.611% due 1/3/14(c) 2,918 2,692 Mediacom LLC Tranche C 7.100% due 1/31/15(c) 4,381 3,876 ---------- 11,839 ---------- CASINOS & GAMING--0.0% Harrahs Operating Co., Inc. Tranche B3 5.700% due 1/28/15(c) 420 386 ---------- COMMODITY CHEMICALS--0.3% Celanese Holdings LLC Tranche B 6.479% due 3/30/14(c) 5,223 4,896 ---------- CONSUMER FINANCE--0.1% Hertz Corp. Letter of Credit 5.350% due 12/21/12(c) 285 266 Hertz Corp. Tranche B 4.470% due 12/21/12(c) 1,356 1,264 ---------- 1,530 ---------- See Notes to Financial Statements 19 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) ---------- ---------- DATA PROCESSING & OUTSOURCED SERVICES--0.5% First Data Corp. Tranche B2 7.607% due 9/24/14(c) $ 498 $ 449 First Data Corp. Tranche B3 7.607% due 9/24/14(c) 6,393 5,784 Reynolds & Reynolds Co. (The) Tranche FL 6.843% due 10/24/12(c) 2,902 2,623 ---------- 8,856 ---------- DEPARTMENT STORES--0.3% Neiman-Marcus Group, Inc. (The) Tranche 7.090% due 4/6/13(c) 5,468 5,072 ---------- DISTILLERS & VINTNERS--0.0% Constellation Brands, Inc. Tranche B 5.782% due 6/5/13(c) 620 594 ---------- DISTRIBUTORS--0.2% Building Materials Holding Corp. Tranche B 9.330% due 11/10/11(c) 3,910 3,021 ---------- DIVERSIFIED CHEMICALS--0.1% Ineos Group Holdings plc Tranche B2 7.357% due 12/16/13(c) 1,427 1,308 Ineos Group Holdings plc Tranche C2 7.857% due 12/16/14(c) 1,427 1,307 ---------- 2,615 ---------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--0.1% ARAMARK Corp. Letter of Credit 5.198% due 1/26/14(c) 75 70 ARAMARK Corp. Tranche B 6.705% due 1/26/14(c) 1,184 1,104 ---------- 1,174 ---------- ELECTRIC UTILITIES--0.1% Energy Future Holdings Corp. Tranche B2 8.645% due 10/10/14(c) 2,290 2,089 Energy Future Holdings Tranche B3 9.442% due 10/10/14(c) 335 305 ---------- 2,394 ---------- PAR VALUE VALUE (000) (000) ---------- ---------- ELECTRICAL COMPONENTS & EQUIPMENT--0.1% Baldor Electric Co. 4.969% due 1/31/14(c) $ 2,492 $ 2,391 ---------- ENVIRONMENTAL & FACILITIES SERVICES--0.3% Allied Waste North America, Inc. Letter of Credit A 7.070% due 3/28/14(c) 1,538 1,461 Allied Waste North America, Inc. Tranche B 6.110% due 3/28/14(c) 2,558 2,430 Duratek, Inc. Tranche B 7.099% due 6/30/16 345 320 EnergySolutions Inc. Tranche B 7.099% due 6/7/13(c) 718 668 EnviroCare Tranche C 7.570% due 6/30/16 45 42 ---------- 4,921 ---------- FERTILIZERS & AGRICULTURAL CHEMICALS--0.0% Mosaic Co. (The) Tranche B 5.063% due 12/1/13(c) 160 160 ---------- HEALTH CARE FACILITIES--0.3% HCA, Inc. Tranche A 8.032% due 11/18/12(c) 1,237 1,140 HCA, Inc. Tranche B 7.080% due 11/18/13(c) 1,318 1,216 Health Management Associates, Inc. Tranche B 6.580% due 2/28/14(c) 1,218 1,059 LifePoint Hospitals, Inc. Tranche B 4.710% due 4/15/12(c) 2,778 2,590 ---------- 6,005 ---------- HEALTH CARE SERVICES--0.2% Davita Inc. Tranche B1 5.276% due 10/5/12(c) 4,157 3,939 ---------- HOUSEHOLD PRODUCTS--0.1% Yankee Candle Co., Inc. Tranche B 6.860% due 2/6/14(c) 2,672 2,338 ---------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS--0.4% Mirant North America LLC Tranche B 5.021% due 1/3/13(c) 763 728 See Notes to Financial Statements 20 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) ---------- ---------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS--(CONTINUED) NRG Energy, Inc. Letter of Credit 6.480% due 2/1/13(c) $ 1,395 $ 1,312 NRG Energy, Inc. Tranche B 6.948% due 2/1/13(c) 4,818 4,512 ---------- 6,552 ---------- INTEGRATED TELECOMMUNICATION SERVICES--0.6% Level 3 Communications, Inc. Tranche B 7.493% due 3/13/14(c) 667 579 NTELOS, Inc. Tranche B1 7.488% due 8/24/11(c) 5,552 5,316 Time Warner Telecom Holdings Tranche B 5.280% due 1/7/13(c) 5,195 4,843 Windstream Corp. Tranche B1 5.612% due 7/17/13(c) 615 596 ---------- 11,334 ---------- LEISURE FACILITIES--0.1% AMF Bowling Worldwide, Inc. Tranche B 6.776% due 5/17/13(c) 2,004 1,652 ---------- OIL & GAS EQUIPMENT & SERVICES--0.3% Helix Energy Solutions Group, Inc. Tranche 6.603% due 7/1/13(c) 3,374 3,235 Hercules Offshore, Inc. Tranche 6.580% due 7/11/13(c) 2,464 2,353 ---------- 5,588 ---------- PAPER PRODUCTS--0.6% Boise Paper Holdings LLC Tranche B 7.500% due 2/22/14(c) 4,300 4,268 Georgia-Pacific Corp. Tranche A 5.546% due 12/20/10(c) 1,485 1,424 Georgia-Pacific Corp. Tranche B1 5.224% due 12/20/12(c) 4,942 4,601 NewPage Corp. Tranche B 9.891% due 12/21/14(c) 685 658 ---------- 10,951 ---------- PAR VALUE VALUE (000) (000) ---------- ---------- PUBLISHING--0.3% Idearc, Inc. Tranche B 6.830% due 11/17/14(c) $ 3,722 $ 2,994 Tribune Co. Tranche B 7.910% due 6/4/14(c) 2,342 1,573 ---------- 4,567 ---------- REAL ESTATE MANAGEMENT & DEVELOPMENT--0.0% Tropicana Entertainment LLC Tranche B 9.250% due 1/3/12(c) 450 428 ---------- RESTAURANTS--0.2% Burger King Corp. Tranche B1 6.375% due 6/30/12(c) 4,490 4,434 ---------- SEMICONDUCTORS--0.1% Freescale Semiconductor, Inc. Tranche 4.869% due 12/1/13(c) 2,800 2,380 ---------- SPECIALIZED FINANCE--0.4% Solar Capital Corp. Tranche B 5.162% due 2/28/14(c) 7,899 7,345 ---------- SPECIALTY CHEMICALS--0.3% Compass Minerals Group, Inc. Tranche B 5.913% due 12/22/12(c) 883 853 Huntsman Corp. Tranche B 4.875% due 8/16/12(c) 2,489 2,402 Johnson Diversy, Inc. Tranche B 6.112% due 12/16/10(c) 54 52 Johnson Diversey, Inc. Tranche B 5.112% due 12/16/11(c) 1,342 1,285 ---------- 4,592 ---------- TRADING COMPANIES & DISTRIBUTORS--0.1% United Rentals, Inc. Letter of Credit 6.500% due 2/14/11 280 269 United Rentals, Inc. Tranche B 5.100% due 2/14/11(c) 662 635 ---------- 904 ---------- See Notes to Financial Statements 21 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND PAR VALUE VALUE (000) (000) ---------- ---------- WIRELESS TELECOMMUNICATION SERVICES--0.6% ALLTEL Communications, Inc. Tranche B3 6.773% due 5/15/15(c) $ 4,836 $ 4,351 Cricket Communications, Inc. Tranche B 7.830% due 6/16/13(c) 3,537 3,368 MetroPCS Wireless, Inc. Tranche B 6.313% due 11/3/13(c) 3,787 3,455 ---------- 11,174 -------------------------------------------------------------------- TOTAL DOMESTIC LOAN AGREEMENTS (IDENTIFIED COST $157,616) 145,848 -------------------------------------------------------------------- FOREIGN LOAN AGREEMENTS(c) (d)--0.4% GERMANY--0.2% Fresenius Medical Care AG & Co. KGaA Tranche B 6.700% due 3/31/13(c) 3,652 3,415 ---------- UNITED KINGDOM--0.1% Yell Group plc Tranche B1 5.122% due 10/27/12(c) 1,925 1,626 ---------- UNITED STATES--0.1% Bausch & Lomb, Inc. Tranche 8.127% due 10/26/15(c) 1,390(j) 2,119 ---------- -------------------------------------------------------------------- TOTAL FOREIGN LOAN AGREEMENTS (IDENTIFIED COST $7,529) 7,160 -------------------------------------------------------------------- SHARES ---------- DOMESTIC COMMON STOCKS--0.0% INDEPENDENT POWER PRODUCERS & ENERGY TRADERS--0.0% Dynegy, Inc. Class A(v) 131 1 ---------- -------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $1) 1 -------------------------------------------------------------------- VALUE SHARES (000) ---------- ---------- EXCHANGE TRADED FUNDS--1.5% DIAMONDS(R) Trust Series I 57,916 $ 7,089 iShares MSCI EAFE(R) Index Fund 37,435 2,691 iShares Russell 2000(R) Index Fund 95,316 6,530 PowerShares QQQ 42,650 1,865 SPDR Trust Series 1 67,600 8,921 -------------------------------------------------------------------- TOTAL EXCHANGE TRADED FUNDS (IDENTIFIED COST $29,110) 27,096 -------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--97.9% (IDENTIFIED COST $1,842,964) 1,766,940 -------------------------------------------------------------------- PAR VALUE (000) ---------- SHORT-TERM INVESTMENTS--0.9% COMMERCIAL PAPER(w)--0.9% Eaton Corp. 2.750% due 4/1/08 $ 395 395 Govco LLC 2.750% due 4/1/08 16,440 16,440 -------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $16,835) 16,835 -------------------------------------------------------------------- TOTAL INVESTMENTS--98.8% (IDENTIFIED COST $1,859,799) 1,783,775(a) Other assets and liabilities, net--1.2% 22,151 ---------- NET ASSETS--100.0% $1,805,926 ========== See Notes to Financial Statements 22 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND At March 31, 2008, the Fund had entered into forward currency contracts as follows (reported in 000s): In Net Unrealized Contract Exchange Settlement Appreciation to Receive for Date Value (Depreciation) -------------- ------------ ------------ --------- ---------------- JPY 1,919,310 USD 18,140 5/30/08 $19,323 $1,183 JPY 936,882 USD 9,200 6/12/08 9,438 238 ------ $1,421 ====== ABBREVIATIONS: FHLB -- Federal Home Loan Bank FHLMC -- Federal Home Loan Mortgage Corporation FNMA -- Federal National Mortgage Association GNMA -- Government National Mortgage Association JPY -- Japanese Yen REIT -- Real Estate Investment Trust USD -- United States Dollar FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): Net unrealized depreciation of investment securities is comprised of gross appreciation of $11,405 and gross depreciation of $89,634 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $1,862,004. (b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2008, these securities amounted to a value of $225,067 (reported in 000s) or 12.5% 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 or 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 Canadian Dollar. (i) Par value represents Colombian Peso. (j) Par value represents Euro. (k) Par Value represents Indonesian Rupiah. (l) Par Value represents Malaysian Ringgit. (m) Par value represents New Zealand Dollar. (n) Par value represents Norwegian Krone. (o) Par value represents Russian Ruble. (p) Par value represents Singapore Dollar. (q) Par value represents Swedish Krona. (r) Par value represents Turkish Lira. (s) Illiquid security. (t) Illiquid and restricted security. For acquisition information, see Note 7, "Illiquid and Restricted Securities" in the Notes to Financial Statements. (u) Security valued at fair value as determined in good faith by or under the direction of the Trustees. At March 31, 2008, this security amounted to a value of $1 (reported in 000s) or 0% of net assets. (v) Non-income producing. (w) The rate shown is the discount rate. See Notes to Financial Statements 23 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 2008 (UNAUDITED)
(Reported in thousands except per share amounts) ASSETS Investment securities at value+ ..................................................... $1,783,775 Cash ................................................................................ 1,183 Receivables Interest ......................................................................... 26,591 Fund shares sold ................................................................. 8,651 Investment securities sold ....................................................... 3,263 Dividends ........................................................................ 62 Unrealized appreciation on forward currency contracts ............................... 1,421 Prepaid expenses .................................................................... 86 Other assets ........................................................................ 95 ---------- Total assets ................................................................... 1,825,127 ---------- LIABILITIES Payables Fund shares repurchased .......................................................... 4,503 Investment securities purchased .................................................. 10,532 Dividend distributions ........................................................... 2,013 Investment advisory fee .......................................................... 815 Distribution and service fees .................................................... 528 Transfer agent fee ............................................................... 397 Administration fee ............................................................... 131 Trustee deferred compensation plan ............................................... 95 Professional fee ................................................................. 35 Trustees' fee .................................................................... 20 Other accrued expenses ........................................................... 132 ---------- Total liabilities .............................................................. 19,201 ---------- NET ASSETS .......................................................................... $1,805,926 ========== NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest .................................... $1,882,797 Undistributed net investment income (loss) .......................................... 2,461 Accumulated net realized loss ....................................................... (4,830) Net unrealized depreciation ......................................................... (74,502) ---------- NET ASSETS .......................................................................... $1,805,926 ========== CLASS A Net asset value (Net assets/shares outstanding) per share ........................... $4.55 Offering price per share $4.55/(1-2.25%) ............................................ $4.65 Shares of beneficial interest outstanding, no par value, unlimited authorization .... 322,284 Net Assets .......................................................................... $1,467,902 CLASS B Net asset value (Net assets/shares outstanding) and offering price per share ........ $4.54 Shares of beneficial interest outstanding, no par value, unlimited authorization .... 4,441 Net Assets .......................................................................... $ 20,149 CLASS C Net asset value (Net assets/shares outstanding) and offering price per share ........ $4.59 Shares of beneficial interest outstanding, no par value, unlimited authorization .... 35,792 Net Assets .......................................................................... $ 164,304 CLASS T Net asset value (Net assets/shares outstanding) and offering price per share ........ $4.58 Shares of beneficial interest outstanding, no par value, unlimited authorization .... 33,516 Net Assets .......................................................................... $ 153,571 + Investment in securities at cost ................................................ $1,859,799
See Notes to Financial Statements 24 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 2008 (UNAUDITED) (Reported in thousands) 10/1/07 - 3/31/08 ----------- INVESTMENT INCOME Interest .......................................................... $ 60,447 Dividends ......................................................... 215 -------- Total investment income ...................................... 60,662 -------- EXPENSES Investment advisory fee ........................................... 4,817 Service fees, Class A ............................................. 1,850 Distribution and service fees, Class B ............................ 77 Distribution and service fees, Class C ............................ 428 Distribution and service fees, Class T ............................ 777 Transfer agent .................................................... 1,295 Administration fee ................................................ 769 Custodian ......................................................... 118 Trustees .......................................................... 76 Printing .......................................................... 74 Professional ...................................................... 45 Registration ...................................................... 38 Miscellaneous ..................................................... 128 -------- Total expenses ............................................... 10,492 Custodian fees paid indirectly .................................... (47) -------- Net expenses ................................................. 10,445 -------- NET INVESTMENT INCOME (LOSS) ...................................... 50,217 -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments ........................... 170 Net realized gain (loss) on foreign currency transactions ......... 1,606 Net change in unrealized appreciation (depreciation) on investments (60,368) Net change in unrealized appreciation (depreciation) on foreign currency translations .......................................... 1,851 -------- NET GAIN (LOSS) ON INVESTMENTS .................................... (56,741) -------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ... $ (6,524) ======== See Notes to Financial Statements 25 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND STATEMENT OF CHANGES IN NET ASSETS
(Reported in thousands) 10/1/07 - 3/31/08 11/1/06 - 11/1/05 - (Unaudited) 9/30/07 10/31/06 ---------- ---------- ---------- FROM OPERATIONS Net investment income (loss) ........................................... $ 50,217 $ 71,116 $ 66,521 Net realized gain (loss) ............................................... 1,776 4,156 (9,710) Net change in unrealized appreciation (depreciation) ....................................................... (58,517) (17,594) 14,644 ---------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...................................................... (6,524) 57,678 71,455 ---------- ---------- ---------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A ......................................... (40,744) (57,792) (43,783) Net investment income, Class B ......................................... (514) (1,076) (1,171) Net investment income, Class C ......................................... (4,453) (8,376) (6,355) Net investment income, Class T ......................................... (3,665) (6,070) (10,060) ---------- ---------- ---------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS ...................................................... (49,376) (73,314) (61,369) ---------- ---------- ---------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A .............................................................. 77,935 385,342 236,133 Change in net assets from share transactions, Class B .............................................................. (724) (6,128) (5,366) Change in net assets from share transactions, Class C .............................................................. (9,802) (24,573) (92,138) Change in net assets from share transactions, Class T .............................................................. 2,843 3,465 (43,654) ---------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS ................................................... 70,252 358,106 94,975 ---------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS. ................................. 14,352 342,470 105,061 NET ASSETS Beginning of period .................................................... 1,791,574 1,449,104 1,344,043 ---------- ---------- ---------- END OF PERIOD .......................................................... $1,805,926 $1,791,574 $1,449,104 ========== ========== ========== Undistributed net investment income (loss) ............................. $ 2,461 $ 1,620 $ 1,251
See Notes to Financial Statements 26 THIS PAGE INTENTIONALLY BLANK. 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 10/1/07-3/31/08(9) $4.70 $0.13(2) $(0.15) $(0.02) $(0.13) $ -- $ -- 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 10/1/07-3/31/08(9) $4.68 $0.12(2) $(0.14) $(0.02) $(0.12) $ -- $ -- 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 $0.005. (9) Unaudited. See Notes to Financial Statements 28
RATIO OF NET NET RATIO OF NET CHANGE ASSET ASSETS, OPERATING INVESTMENT IN NET VALUE, END OF EXPENSES TO INCOME TO TOTAL ASSET END OF TOTAL PERIOD AVERAGE AVERAGE NET PORTFOLIO DISTRIBUTIONS VALUE PERIOD RETURN(1) (000'S) NET ASSETS ASSETS TURNOVER ------------------------------------------------------------------------------------------------------------------------------------ CLASS A 10/1/07-3/31/08(9) $(0.13) $(0.15) $4.55 (0.46%)(4) $1,467,902 1.05%(3) 5.59%(3) 40%(4) 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 10/1/07-3/31/08(9) $(0.12) $(0.14) $4.54 (0.50%)(4) $20,149 1.55%(3) 5.08%(3) 40%(4) 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 10/1/07-3/31/08(10) $4.73 $0.12(2) $(0.14) $(0.02) $(0.12) $ -- $ -- 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 10/1/07-3/31/08(10) $4.72 $0.11(2) $(0.14) $(0.03) $(0.11) $ -- $ -- 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 $0.005. (10)Unaudited. See Notes to Financial Statements 30
RATIO OF NET NET RATIO OF NET CHANGE ASSET ASSETS, OPERATING INVESTMENT IN NET VALUE, END OF EXPENSES TO INCOME TO TOTAL ASSET END OF TOTAL PERIOD AVERAGE AVERAGE NET PORTFOLIO DISTRIBUTIONS VALUE PERIOD RETURN(1) (000'S) NET ASSETS ASSETS TURNOVER ------------------------------------------------------------------------------------------------------------------------------------ CLASS C 10/1/07-3/31/08(10) $(0.12) $(0.14) $4.59 (0.37%)(4) $164,304 1.30%(3) 5.33%(3) 40%(4) 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 10/1/07-3/31/08(10) $(0.11) $(0.14) $4.58 (0.62%)(4) $153,571 1.80%(3) 4.83%(3) 40%(4) 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 MARCH 31, 2008 (UNAUDITED) 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 Funds' 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 of the the acquired funds' fiscal year ends were changed to correspond with the Trust's September 30th fiscal year end. As of the date of this report, nineteen funds are offered for sale, of which the Fund is reported in this semiannual report. The Fund is diversified and has an investment objective to provide high current income while attempting to limit changes in the Fund's net asset value per share caused by interest rate changes. 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 made within one year following 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 MARCH 31, 2008 (UNAUDITED) (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 March 31, 2008, the total value of these securities represented approximately 3% 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. The Fund will be adopting SFAS 157 effective with the December 31, 2008 quarterly reporting of the schedule of investments. In March 2008, Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("FAS 161") was issued and is effective for fiscal years and interim periods beginning after November 15, 2008. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why a fund uses derivatives, how derivatives are accounted for, and how derivative instruments affect a fund's results of operations and financial position. Management is currently evaluating the impact of FAS 161 on financial statement disclosures, if any. 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. 33 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) FASB Interpretation No. 48, ("FIN 48") Accounting for Uncertainty in Income Taxes, sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has analyzed the Fund's tax positions and has concluded that no provision for income tax is required in the Fund's financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. However, management's conclusions regarding the adoption of FIN 48 may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance from the FASB, new tax laws, regulations and administrative interpretations (including court decisions). Each of the Fund's federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. 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. 34 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) 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: 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). 35 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) 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 Fund's 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+ $1 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. 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 six-month period (the "period") ended March 31, 2008, as follows (reported in 000s): 36 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) 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 ----------- ------------- ------------- ------------- ------------- $18 $53 $8 $--(1) $21 (1) Amount is less than $500. 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 include 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 March 31, 2008, the Fund incurred administration fees totaling $769 (reported in 000s). PEPCO serves as the Fund's transfer agent with Boston Financial Data Services, Inc. serving as sub-transfer agent. For the period ended March 31, 2008, transfer agent fees were $1,295 (reported in 000s) as reported in the Statement of Operations. At March 31, 2008, PNX and its affiliates and Phoenix affiliated Funds held shares of the Fund which aggregated the following (reported in 000s): AGGREGATE NET ASSET SHARES VALUE -------------- --------------- Class A shares 1,010 $4,596 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 March 31, 2008. 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 March 31, 2008, were as follows: (REPORTED IN 000S) ----------------------------- PURCHASES SALES ------------- ------------ $545,774 $405,064 37 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) Purchases and sales of long-term U.S. Government and agency securities for the Fund during the period ended March 31, 2008, were as follows: (REPORTED IN 000S) ----------------------------- PURCHASES SALES ------------- ------------ $258,772 $312,615 5. CAPITAL SHARES Transactions (reported in 000s) in shares of capital stock, for the periods ended as indicated below, were as follows:
--------------------- --------------------- SHARES AMOUNT SHARES AMOUNT ------- --------- ------- --------- ----------------------- --------------------- --------------------- MULTI-SECTOR 10/1/07 - 11/1/06 - SHORT TERM BOND FUND 3/31/08 9/30/06 ----------------------- --------------------- --------------------- CLASS A Shares sold 68,690 $ 319,619 145,165 $ 686,127 Reinvestment of distributions 7,629 35,424 10,182 48,092 Redemptions (59,733) (277,108) (73,905) (348,877) ------- --------- ------- --------- Net increase / (decrease) 16,586 $ 77,935 81,442 $ 385,342 ======= ========= ======= ========= CLASS B Shares sold 528 $ 2,437 920 $ 4,328 Reinvestment of distributions 78 364 164 771 Redemptions (758) (3,525) (2,388) (11,227) ------- --------- ------- --------- Net increase / (decrease) (152) $ (724) (1,304) $ (6,128) ======= ========= ======= ========= CLASS C Shares sold 3,781 $ 17,687 7,252 $ 34,538 Reinvestment of distributions 742 3,473 1,316 6,263 Redemptions (6,608) (30,962) (13,717) (65,374) ------- --------- ------- --------- Net increase / (decrease) (2,085) $ (9,802) (5,149) $ (24,573) ======= ========= ======= ========= CLASS T Shares sold 4,950 $ 23,139 9,696 $ 46,121 Reinvestment of distributions 613 2,868 925 4,398 Redemptions (4,960) (23,164) (9,901) (47,054) ------- --------- ------- --------- Net increase / (decrease) 603 $ 2,843 720 $ 3,465 ======= ========= ======= =========
38 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) --------------------- SHARES AMOUNT ------- --------- ----------------------- --------------------- MULTI-SECTOR 11/1/05 - SHORT TERM BOND FUND 10/31/06 ----------------------- --------------------- CLASS A Shares sold 151,778 $ 713,454 Reinvestment of distributions 7,325 34,423 Redemptions (109,181) (511,744) -------- --------- Net increase / (decrease) 49,922 $ 236,133 ======== ========= CLASS B Shares sold 1,291 $ 6,045 Reinvestment of distributions 170 797 Redemptions (2,609) (12,208) -------- --------- Net increase / (decrease) (1,148) $ (5,366) ======== ========= CLASS C Shares sold 11,032 $ 52,248 Reinvestment of distributions 1,522 7,207 Redemptions (32,038) (151,593) -------- --------- Net increase / (decrease) (19,484) $ (92,138) ======== ========= CLASS T Shares sold 8,658 $ 40,931 Reinvestment of distributions 816 3,858 Redemptions (18,719) (88,443) -------- --------- Net increase / (decrease) (9,245) $ (43,654) ======== ========= 39 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (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 March 31, 2008, the Fund held the following illiquid and restricted securities (reported in 000s): MARKET % OF ACQUISITION ACQUISITION VALUE NET ASSETS DATE COST AT 3/31/08 AT 3/31/08 ----------- ----------- ---------- ---------- Home Equity Asset Trust 06-7, A 144A 6.000%, 2/25/37 10/11/06 $2,158 $21 0.0% MASTR Alternative Net Interest Margin 06-6, N1 144A 3.606%, 9/26/46 8/3/06 1,206 57 0.0 MASTR Alternative Net Interest Margin 05- CW1A, N1 144A 6.750%, 12/26/35 11/18/05 561 361 0.0 MASTR Resecuritization Trust 05-6, 4C1, N2 144A 5.606%, 4/26/45 1/12/06 3,250 1,300 0.1 40 PHOENIX MULTI-SECTOR SHORT TERM BOND FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (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. 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 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 this matter will be material to these financial statements. 10. FEDERAL INCOME TAX INFORMATION (amounts reported in 000s) 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 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. 11. OTHER On February 7, 2008, PNX announced that it intends to spin off its asset management subsidiary ("spin-off"), Phoenix Investment Partners, Ltd. ("PXP"), to PNX' shareholders. The Fund's Administrator and Transfer Agent PEPCO, a subsidiary of PXP, and the Fund's Adviser, PIC, also a subsidiary of PXP, are also intended to be part of the spin-off. 41 CONSIDERATION OF ADVISORY AND SUB-ADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES MARCH 31, 2008 (UNAUDITED) The Board of Trustees of the Trust, along with the Boards of Trustees of the other trusts in the Phoenix family of funds (collectively, the "Board"), is responsible for determining whether to approve the entering into and continuation of each investment advisory and subadvisory agreement (each, an "Agreement") for the Phoenix funds (collectively, the "Funds"). At meetings held on November 13 - 16, 2007, the Board, including a majority of the Trustees who are not interested persons as defined in Section 2(a)(19) of the Investment Company Act of 1940, considered and approved the continuation of each Agreement, as further discussed below. In approving each Agreement, the Board determined that the continued retention of the applicable adviser or subadviser was in the best interests of each Fund and its shareholders. The Trustees considered each Fund separately, although they also collectively took into account those interests that all the Funds had in common. In reaching their decisions, the Board considered information furnished throughout the year at regular Board meetings as well as information prepared specifically in connection with the annual review process. During the review process, the Board received assistance and advice from and met separately with independent legal counsel. The Board's determination contemplated a number of factors that the Trustees believed to be relevant. Some of the factors that the Board considered are described below, although the Trustees did not identify any particular information or factor as controlling, but, instead, the Board considered the Agreements in the totality of the circumstances. Each individual Trustee may have evaluated the information presented differently, giving different weights to different factors. NATURE, EXTENT AND QUALITY OF SERVICES. The majority of the Funds(1) are managed using a "manager of managers" structure that generally involves the use of one or more subadvisers to manage some or all of a Fund's portfolio. Under this structure, Phoenix Investment Counsel, Inc. ("PIC") is responsible for evaluating and selecting subadvisers on an ongoing basis and for making any recommendations to the Board regarding hiring, retaining or replacing subadvisers. In considering the Agreement with PIC, therefore, the Trustees considered PIC's process for supervising and managing the Funds' subadvisers, including (a) PIC's ability to select and monitor the subadvisers; (b) PIC's ability to provide the services necessary to monitor the subadvisers' compliance with the Funds' respective investment objectives, policies and restrictions as well as provide other oversight activities; and (c) PIC's ability and willingness to identify instances in which a subadviser should be replaced and to carry out the required changes. The Trustees also considered: (d) the experience, capability and integrity of PIC's management and other personnel; (e) the financial position of PIC; (f) the quality of PIC's own regulatory and legal compliance policies, procedures and systems; (g) the nature, extent and quality of administrative and other services provided by PIC to the Funds; and (h) PIC's supervision of the Funds' other service providers. Finally, the Board also noted the extent of benefits that are provided to Fund shareholders as a result of being part of the Phoenix family of Funds, including the right to exchange investments between the same class of Funds without a sales charge, the ability to reinvest Fund dividends into other Funds and the right to combine holdings in other Funds to obtain a reduced sales charge. --------------------------- (1) DURING THE PERIOD BEING REPORTED, THE ONLY FUND THAT DID NOT EMPLOY A MANAGER OF MANAGERS STRUCTURE WAS THE PHOENIX GROWTH & INCOME FUND, WHICH IS A SERIES OF PHOENIX EQUITY SERIES FUND. PIC ACTED AS THE ADVISER FOR THAT FUND WITHOUT EMPLOYING A SUBADVISER, WHICH MEANS THAT PIC PROVIDED FOR THAT FUND THE SERVICES THAT FOR THE OTHER FUNDS WERE PROVIDED BY SUBADVISERS. THE BOARD CONSIDERED THE PIC AGREEMENT WITH RESPECT TO THAT FUND IN THAT CONTEXT. 42 CONSIDERATION OF ADVISORY AND SUB-ADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES MARCH 31, 2008 (UNAUDITED) (CONTINUED) With respect to the subadvisory Agreements, the Board noted that each subadviser provided information with respect to portfolio management, compliance with the respective Fund's investment policies and procedures, and compliance with applicable securities laws and assurances thereof. In considering the renewal of the subadvisory Agreements, the Board considered each subadviser's investment management process, including (a) the experience, capability and integrity of the subadviser's management and other personnel committed by the subadviser to manage its respective Fund(s); (b) the financial position of the subadviser; (c) the quality and commitment of the subadviser's regulatory and legal compliance policies, procedures and systems; and (d) the subadviser's brokerage and trading practices. After considering all of the information provided to them, the Trustees concluded that the nature, extent and quality of the services provided by PIC and each subadviser were reasonable and beneficial to the Funds and their shareholders. INVESTMENT PERFORMANCE. The Board placed significant emphasis on its consideration of the investment performance of the Funds, in view of its importance to shareholders, and the Board evaluated Fund performance in the context of the manager-of-managers structure. The Board also considered that PIC continued to be proactive in seeking to replace and/or add subadvisers as necessary, with a view toward improving Fund performance over the long term. While consideration was given to performance reports and discussions at Board meetings throughout the year, particular attention in assessing performance was given to a report (the "Lipper Report") for the Funds prepared by Lipper Inc. ("Lipper") and furnished specifically for the contract renewal process. Lipper is an independent provider of investment company data. The Lipper Report presented each Fund's short-term and long-term performance relative to a peer group of other mutual funds and benchmarks, as selected by Lipper. The Board considered the composition of each peer group, selection criteria and the appropriateness of the benchmark used for each Fund. The Board also assessed each Fund's performance relative to the fees and expenses of each Fund as well as PIC's profitability. The Board noted that while many of the Funds had generally performed in line with their respective benchmarks and peer groups during the periods measured, some of the Funds had underperformed compared to their respective benchmarks and/or peer groups. The Board noted that certain of the Funds' underperformance was slight. Also, some of the Funds underperforming their benchmarks and/or peer groups for a given period had outperformed such benchmarks and/or peer groups during other periods. Where significant, the Board extensively considered the performance of the underperforming Funds and the reasons for the performance issues. The Board discussed the possible reasons for the underperformance with PIC and spoke with PIC regarding plans to monitor and address performance issues during the coming year. After considering all of the information presented, the Board ultimately concluded that it should approve the continuation of the Agreements. However, the Board noted that certain Funds' performance would continue to be closely monitored by PIC so that if performance over a longer period of time did not improve, the subadviser would be replaced in a timely manner. 43 CONSIDERATION OF ADVISORY AND SUB-ADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES MARCH 31, 2008 (UNAUDITED) (CONTINUED) PROFITABILITY. The Board also considered the level of profits realized by PIC and its affiliates in connection with the operation of the Funds. In this regard, the Board reviewed the analysis presented by PIC regarding its overall profitability for its management of the Phoenix retail fund family as well as the profits of its affiliates for managing and providing other services to each Fund. In addition to the fees paid to PIC and its affiliates, the Trustees considered any other benefits derived by PIC or its affiliates from their relationship with the Funds. Specific attention was paid to the methodology used to allocate costs to each Fund, in recognition of the fact that allocation methodologies are inherently subjective and various allocation methodologies may each be reasonable while producing different results. In this regard, the Board noted that the allocations appeared reasonable and concluded that the profitability to PIC from each Fund was reasonable in light of the quality of all services rendered to the Funds by PIC and its affiliates. The Board did not separately review profitability information for each subadviser, noting that the subadvisory fees are paid by PIC rather than the Funds. MANAGEMENT FEES AND TOTAL EXPENSES. In evaluating the management fees and total expenses of each Fund, the Board reviewed information provided by PIC and comparisons to other funds in each Fund's peer group as presented in the Lipper Report. The Board noted that several of the Funds had incurred one-time costs related to a shareholder proxy, causing expenses for the period shown to be higher than would be expected in future periods. The Board also noted that certain Funds had higher gross expenses when expressed as a percentage of net assets than those of such Funds' larger peers, which the Trustees considered in the context of the Funds' expectations for future growth. Finally, the Board noted that several of the Funds had fee waivers and/or expense caps in place to limit the total expenses incurred by the Funds and their shareholders. Based upon the information presented by PIC and Lipper, the Trustees determined that the management fees charged by PIC and the total expenses of the Funds were reasonable. The Board did not receive comparative fee information relating specifically to subadvisory fees, in light of the fact that the subadvisory fees are paid by PIC and not by the Funds. ECONOMIES OF SCALE. The Board noted that the management fees for several of the Funds included breakpoints based on assets under management, and fee waivers and/or expense caps were also in place for several of the Funds. The Board determined that PIC and the Funds likely would achieve certain economies of scale, particularly in relationship to certain fixed costs, and shareholders of the Funds would have an opportunity to benefit from these economies of scale. In considering the subadvisory Agreements, the Board also considered the existence of any economies of scale and whether they would be passed along to the Funds' shareholders, but noted that any such economies would likely be generated at the Fund level rather than at the subadviser level. 44 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. 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 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 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 * Pursuant to the Trust's retirement policy, Messrs. Conway, Dalzell-Payne and Jeffries will retire from the Board of Trustees in May 2008. -------------------------------------------------------------------------------- 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. THIS PAGE INTENTIONALLY BLANK. [LOGO OMITTED] --------------- PHOENIX PRESORTED STANDARD Phoenix Equity Planning Corporation U.S. POSTAGE P.O. Box 150480 PAID Hartford, CT 06115-0480 Lancaster, PA Permit No. 1793 --------------- For more information about Phoenix mutual funds, please call your financial representative, contact us at 1-800-243-1574 or visit PHOENIXFUNDS.COM. PXP5033a 3-08 BPD34823 [LOGO OMITTED] PHOENIX -------------------------------------------------------------------------------- SEMIANNUAL REPORT Phoenix Real Estate Securities 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 | March 31, 2008 | PHOENIXFUNDS.COM ................................................................................ NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE TABLE OF CONTENTS Message to Shareholders................................................... 1 Disclosure of Fund Expenses............................................... 4 Schedule of Investments................................................... 6 Statement of Assets and Liabilities....................................... 8 Statement of Operations................................................... 9 Statement of Changes in Net Assets........................................ 10 Financial Highlights...................................................... 12 Notes to Financial Statements............................................. 14 Consideration of Advisory and Sub-Advisory Agreements by the Board of Trustees ................................... 22 -------------------------------------------------------------------------------- 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 Fund 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 for the 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 Real Estate Securities Fund 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: Whether we are headed into a recession or firmly entrenched in one, consumers are uncomfortable. Preserving assets has become a critical concern as investors deal with falling home values, tightening credit standards, job worries and high energy prices. At Phoenix Investment Partners, we are committed to helping investors succeed over the long term and we strive to provide investors with choice. The start of 2008 was rife with investor confusion caused, in part, by weakness in the equity markets, conflicting economic news, continued liquidity issues, a plummeting dollar, and a weakening of world markets. The U.S. economy has slowed considerably--it may even be shrinking slightly. A weaker economy could cause a reduction in revenues for corporations, as well as state and local governments. In response, many investors have moved money into Treasury securities, considered to be safe from the risk of default. This flight to the relative safety of Treasuries has driven their prices up and their yields down, compared with other securities, including municipal bonds. Look at recent performance through the lens of history: Through February 29, the S&P 500 had fallen 9.05% YTD, the worst two-month start to a year since 1933 (when the market fell 17%). March's return moderated somewhat, losing only 0.43%, bringing the year-to-date return to -9.44%. Since 1925, there have been five worse quarters than this, four were in the 1930s and the fifth was the first quarter of 2001 when the S&P 500 lost 11.85%. While the overall market performance for the quarter is somewhat indicative of the state of the economy, the absolute numbers don't tell the whole story; volatility does. The volatility of the S&P 500 in the first quarter ranks an historic fifth of all time, since 1925, as measured by the number of days when the market moved by more than 1%. Thoughtful investment planning calls for a well-diversified portfolio to help moderate the impact of market volatility. PhoenixFunds 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. This report for the fiscal period ended March 31, 2008 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. 1 It is 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. We are committed to providing you with 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. It is our privilege to serve you. Sincerely yours, /s/ George R. Aylward George R. Aylward President, PhoenixFunds APRIL 2008 PERFORMANCE DATA QUOTED REPRESENTS PAST RESULTS. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN PERFORMANCE SHOWN ABOVE. 2 THIS PAGE INTENTIONALLY BLANK. PHOENIX REAL ESTATE SECURITIES FUND DISCLOSURE OF FUND EXPENSES (UNAUDITED) FOR THE SIX-MONTH PERIOD OF OCTOBER 1, 2007 TO MARCH 31, 2008 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. The following Expense Table illustrates 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 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 OCTOBER 1, 2007 TO MARCH 31, 2008 EXPENSE TABLE -------------------------------------------------------------------------------- Beginning Ending Expenses Account Account Annualized Paid Value Value Expense During October 1, 2007 March 31, 2008 Ratio Period* -------------------------------------------------------------------------------- REAL ESTATE SECURITIES FUND -------------------------------------------------------------------------------- ACTUAL Class A $1,000.00 $ 889.60 1.31% $ 6.19 Class B 1,000.00 886.20 2.06 9.71 Class C 1,000.00 886.20 2.06 9.71 Class I 1,000.00 890.90 1.06 5.01 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) Class A 1,000.00 1,018.37 1.31 6.63 Class B 1,000.00 1,014.57 2.06 10.43 Class C 1,000.00 1,014.57 2.06 10.43 Class I 1,000.00 1,019.63 1.06 5.37 * 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 366 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 SCHEDULE OF INVESTMENTS MARCH 31, 2008 (UNAUDITED) -------------------------------------------------------- SECTOR WEIGHTINGS* ------------------ Regional Malls 18% Office 18 Shopping Centers 13 Health Care 12 Apartments 12 Industrial 8 Lodging/Resorts 7 Other (includes short-term investments) 12 *As a % of total investments. -------------------------------------------------------- VALUE SHARES (000) --------- ---------- DOMESTIC COMMON STOCKS--98.2% REAL ESTATE INVESTMENT TRUSTS--98.2% DIVERSIFIED--4.5% Vornado Realty Trust 538,447 $ 46,419 -------------------------------------------------------------------- TOTAL DIVERSIFIED 46,419 -------------------------------------------------------------------- HEALTH CARE--12.2% HCP, Inc. 1,173,020 39,660 Health Care REIT, Inc. 720,580 32,520 Nationwide Health Properties, Inc. 249,580 8,423 Ventas, Inc. 984,989 44,236 -------------------------------------------------------------------- TOTAL HEALTH CARE 124,839 -------------------------------------------------------------------- INDUSTRIAL/OFFICE--25.5% INDUSTRIAL--7.7% AMB Property Corp. 294,429 16,023 DCT Industrial Trust, Inc. 318,694 3,174 Prologis 1,016,866 59,853 ---------- 79,050 ---------- OFFICE--17.8% Alexandria Real Estate Equities, Inc. 385,819 35,773 Boston Properties, Inc. 407,133 37,484 Corporate Office Properties Trust 880,544 29,595 Digital Realty Trust, Inc. 1,152,303 40,907 VALUE SHARES (000) --------- ---------- OFFICE--(CONTINUED) Douglas Emmett, Inc. 312,870 $ 6,902 Kilroy Realty Corp. 50,357 2,473 SL Green Realty Corp. 353,898 28,832 ---------- 181,966 -------------------------------------------------------------------- TOTAL INDUSTRIAL/OFFICE 261,016 -------------------------------------------------------------------- LODGING/RESORTS--6.6% DiamondRock Hospitality Co. 970,345 12,294 Hospitality Properties Trust 211,060 7,180 Host Hotels & Resorts, Inc. 2,122,065 33,783 LaSalle Hotel Properties 253,966 7,297 Sunstone Hotel Investors, Inc. 397,707 6,368 -------------------------------------------------------------------- TOTAL LODGING/RESORTS 66,922 -------------------------------------------------------------------- RESIDENTIAL--12.1% APARTMENTS--12.1% AvalonBay Communities, Inc. 294,846 28,459 BRE Properties, Inc. 314,760 14,340 Equity Residential 671,689 27,868 Essex Property Trust, Inc. 285,592 32,552 UDR, Inc. 853,499 20,928 -------------------------------------------------------------------- TOTAL RESIDENTIAL 124,147 -------------------------------------------------------------------- 6 PHOENIX REAL ESTATE SECURITIES FUND VALUE SHARES (000) --------- ---------- RETAIL--31.2% REGIONAL MALLS--18.3% CBL & Associates Properties, Inc. 141,740 $ 3,335 General Growth Properties, Inc. 1,244,359 47,497 Macerich Co. (The) 597,715 42,001 Simon Property Group, Inc. 1,021,845 94,940 ---------- 187,773 ---------- SHOPPING CENTERS--12.9% Developers Diversified Realty Corp. 681,300 28,533 Federal Realty Investment Trust 273,750 21,339 Kimco Realty Corp. 1,012,492 39,659 Regency Centers Corp. 339,871 22,010 Tanger Factory Outlet Centers, Inc. 526,300 20,247 ---------- 131,788 -------------------------------------------------------------------- TOTAL RETAIL 319,561 -------------------------------------------------------------------- SELF STORAGE--5.3% Extra Space Storage, Inc. 1,174,463 19,015 Public Storage, Inc. 391,933 34,733 -------------------------------------------------------------------- TOTAL SELF STORAGE 53,748 -------------------------------------------------------------------- VALUE SHARES (000) --------- ---------- SPECIALTY--0.8% Entertainment Properties Trust 157,220 $ 7,756 -------------------------------------------------------------------- TOTAL SPECIALTY 7,756 -------------------------------------------------------------------- -------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $754,677) 1,004,408 -------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--98.2% (IDENTIFIED COST $754,677) 1,004,408 -------------------------------------------------------------------- PAR VALUE (000) --------- SHORT-TERM INVESTMENTS--1.7% FEDERAL AGENCY SECURITIES(b)--1.7% FHLB 1.500% due 4/1/08 $ 3,580 3,580 1.700% due 4/4/08 3,280 3,279 FHLMC 1.750% due 4/1/08 4,180 4,180 FNMA 2.050% due 4/2/08 6,640 6,640 -------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $17,679) 17,679 -------------------------------------------------------------------- TOTAL INVESTMENTS--99.9% (IDENTIFIED COST $772,356) 1,022,087(a) Other assets and liabilities, net--0.1% 836 ---------- NET ASSETS--100.0% $1,022,923 ========== ABBREVIATIONS: FHLB - Federal Home Loan Bank FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association REIT - Real Estate Investment Trust FOOTNOTE LEGEND: (a) Federal Income Tax Information (reported in 000s): Net unrealized appreciation of investment securities is comprised of gross appreciation of $231,182 and gross depreciation of $9,898 for federal income tax purposes. At March 31, 2008, the aggregate cost of securities for federal income tax purposes was $800,803. (b) The rate shown is the discount rate. 7 PHOENIX REAL ESTATE SECURITIES FUND STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 2008 (UNAUDITED)
(Reported in thousands except per share amounts) ASSETS Investment securities at value+ ..................................................... $1,022,087 Cash ................................................................................ 86 Receivables Dividends ........................................................................ 3,776 Fund shares sold ................................................................. 3,511 Investment securities sold ....................................................... 1,420 Prepaid expenses .................................................................... 75 Other assets ........................................................................ 65 ---------- Total assets ................................................................... 1,031,020 ---------- LIABILITIES Payables Investment securities purchased .................................................. 4,373 Fund shares repurchased .......................................................... 2,247 Transfer agent fee ............................................................... 524 Investment advisory fee .......................................................... 457 Distribution and service fees .................................................... 273 Administration fee ............................................................... 70 Trustee deferred compensation plan ............................................... 65 Professional fee ................................................................. 27 Trustees' fee .................................................................... 11 Other accrued expenses ........................................................... 50 ---------- Total liabilities .............................................................. 8,097 ---------- NET ASSETS .......................................................................... $1,022,923 ========== NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest .................................... $ 793,529 Undistributed net investment income (loss) .......................................... 8,833 Accumulated net realized loss ....................................................... (29,170) Net unrealized appreciation ......................................................... 249,731 ---------- NET ASSETS .......................................................................... $1,022,923 ========== CLASS A Net asset value (Net assets/shares outstanding) per share ........................... $29.02 Offering price per share $29.02/(1-5.75%) ........................................... $30.79 Shares of beneficial interest outstanding, no par value, unlimited authorization .... 30,672 Net Assets .......................................................................... $ 890,152 CLASS B Net asset value (Net assets/shares outstanding) and offering price per share ........ $28.69 Shares of beneficial interest outstanding, no par value, unlimited authorization .... 1,298 Net Assets .......................................................................... $ 37,231 CLASS C Net asset value (Net assets/shares outstanding) and offering price per share ........ $29.00 Shares of beneficial interest outstanding, no par value, unlimited authorization .... 2,485 Net Assets .......................................................................... $ 72,062 CLASS I Net asset value (Net assets/shares outstanding) and offering price per share ........ $29.01 Shares of beneficial interest outstanding, no par value, unlimited authorization .... 809 Net Assets .......................................................................... $ 23,478 + Investment securities at cost .................................................. 772,356
See Notes to Financial Statements 8 PHOENIX REAL ESTATE SECURITIES FUND STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 2008 (UNAUDITED) (Reported in thousands) 10/1/07 - 3/31/08 --------- INVESTMENT INCOME Dividends ........................................................ $ 25,177 Interest ......................................................... 369 --------- Total investment income ..................................... 25,546 --------- EXPENSES Investment advisory fee .......................................... 4,080 Service fees, Class A ............................................ 1,187 Distribution and service fees, Class B ........................... 207 Distribution and service fees, Class C ........................... 408 Transfer agent ................................................... 1,595 Administration fee ............................................... 455 Printing ......................................................... 129 Registration ..................................................... 68 Custodian ........................................................ 54 Trustees ......................................................... 49 Professional ..................................................... 32 Miscellaneous .................................................... 64 --------- Total expenses .............................................. 8,328 Less expenses reimbursed by investment adviser ................... (728) Custodian fees paid indirectly ................................... (3) --------- Net expenses ................................................ 7,597 --------- NET INVESTMENT INCOME (LOSS) ..................................... 17,949 --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments .......................... (23,031) Net change in unrealized appreciation (depreciation) on investments (137,671) --------- NET GAIN (LOSS) ON INVESTMENTS ................................... (160,702) --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .. $(142,753) ========= See Notes to Financial Statements 9 PHOENIX REAL ESTATE SECURITIES FUND STATEMENT OF CHANGES IN NET ASSETS
(Reported in thousands) 10/1/07 3/31/08 - 12/1/06 - 12/1/05 - (Unaudited) 9/30/07 11/30/06 ---------- ---------- ---------- FROM OPERATIONS Net investment income (loss) ........................................... $ 17,949 $ 12,154 $ 9,175 Net realized gain (loss) ............................................... (23,031) 30,650 58,061 Net change in unrealized appreciation (depreciation) ....................................................... (137,671) (155,030) 315,898 ---------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...................................................... (142,753) (112,226) 383,134 ---------- ---------- ---------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A ......................................... (8,670) (11,397) (10,315) Net investment income, Class B ......................................... (230) (120) (310) Net investment income, Class C ......................................... (437) (203) (359) Net investment income, Class I ......................................... (240) (166) -- Net realized short-term gains, Class A ................................. -- (9,631) (446) Net realized short-term gains, Class B ................................. -- (525) (36) Net realized short-term gains, Class C ................................. -- (844) (41) Net realized short-term gains, Class I ................................. -- (6) -- Net realized long-term gains, Class A .................................. (31,639) (41,285) (15,981) Net realized long-term gains, Class B .................................. (1,389) (2,269) (1,290) Net realized long-term gains, Class C .................................. (2,714) (3,617) (1,469) Net realized long-term gains, Class I .................................. (715) -- -- ---------- ---------- ---------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS ...................................................... (46,034) (70,063) (30,247) ---------- ---------- ---------- FROM SHARE TRANSACTIONS (SEE NOTE 5) Change in net assets from share transactions, Class A .............................................................. (83,287) 8,577 245,360 Change in net assets from share transactions, Class B .............................................................. (5,478) (13,672) (7,487) Change in net assets from share transactions, Class C .............................................................. (13,661) 1,408 17,731 Change in net assets from share transactions, Class I .............................................................. (5,959) 33,030 -- ---------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS ................................................... (108,385) 29,343 255,604 ---------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS .................................. (297,172) (152,946) 608,491 NET ASSETS Beginning of period .................................................... 1,320,095 1,473,041 864,550 ---------- ---------- ---------- END OF PERIOD .......................................................... $1,022,923 $1,320,095 $1,473,041 ========== ========== ========== Undistributed net investment income (loss) ............................. $ 8,833 $ 461 $ 124
See Notes to Financial Statements 10 THIS PAGE INTENTIONALLY BLANK. 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 A 10/1/07 to 3/31/08(6) $34.10 $0.50 $(4.29) $(3.79) $(0.28) $(1.01) 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 10/1/07 to 3/31/08(6) $33.72 $0.38 $(4.23) $(3.85) $(0.17) $(1.01) 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 10/1/07 to 3/31/08(6) $34.07 $0.39 $(4.28) $(3.89) $(0.17) $(1.01) 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) -- CLASS I 10/1/07 to 3/31/08(6) $34.08 $0.54 $(4.28) $(3.74) $(0.32) $(1.01) 12/29/06(5) to 9/30/07 35.99 0.28 (1.87) (1.59) (0.31) (0.01)
(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) Unaudited. See Notes to Financial Statements 12
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 A 10/1/07 to 3/31/08(6) $(1.29) $(5.08) $29.02 (11.04)%(4) $ 890,152 1.31%(3) 1.44%(3) 3.36%(3) 10%(4) 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 10/1/07 to 3/31/08(6) $(1.18) $(5.03) $28.69 (11.38)%(4) $ 37,231 2.06%(3) 2.19%(3) 2.59%(3) 10%(4) 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 10/1/07 to 3/31/08(6) $(1.18) $(5.07) $29.00 (11.38)%(4) $ 72,062 2.06%(3) 2.19%(3) 2.57%(3) 10%(4) 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) CLASS I 10/1/07 to 3/31/08(6) $(1.33) $(5.07) $29.01 (10.91)%(4) $ 23,478 1.06%(3) 1.19%(3) 3.60%(3) 10%(4) 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)
See Notes to Financial Statements 13 PHOENIX REAL ESTATE SECURITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) 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 Funds' 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 of the acquired funds' fiscal year ends were changed to correspond with the Trust's September 30th fiscal year end. As of the date of this report, nineteen funds are offered for sale, of which the Fund is reported in this semiannual report. The Fund is non-diversified and has an investment objective of capital appreciation and income with approximately equal emphasis. The Fund offers Class A shares, Class B shares, Class C shares and Class I shares for sale. 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 made within one year following 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. Class I shares are sold without a sales charge. 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. Short-term investments having a remaining maturity of 60 days or less are valued at amortized cost, which approximates market. 14 PHOENIX REAL ESTATE SECURITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) 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. The Fund will be adopting SFAS 157 effective with the December 31, 2008 quarterly reporting of the schedule of investments. In March 2008, Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("FAS 161") was issued and is effective for fiscal years and interim periods beginning after November 15, 2008. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why a fund uses derivatives, how derivatives are accounted for, and how derivative instruments affect a fund's results of operations and financial position. Management is currently evaluating the impact of FAS 161 on financial statement disclosures, if any. 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. FASB Interpretation No. 48, ("FIN 48") Accounting for Uncertainty in Income Taxes, sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has analyzed the Fund's tax positions and has concluded that no provision for income tax is required in the Fund's financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. However, management's conclusions regarding the adoption of FIN 48 may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance from the FASB, new tax laws, regulations and administrative interpretations (including court decisions). Each of the Fund's federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. 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 15 PHOENIX REAL ESTATE SECURITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) 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. 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% 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 1.30% for Class A Shares, 2.05% for Class B Shares, 2.05% for Class C Shares and 1.05% for Class I Shares. The Adviser will voluntarily continue the expense limitations, subsequent to March 31, 2008, but may discontinue it at any time. 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 000s) may be recaptured by the fiscal year ended 2010. Duff & Phelps Investment Management Co. ("Duff & Phelps") is the subadviser to the Fund. Duff & Phelps is an indirect, wholly-owned subsidiary of PNX. 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 six-month period (the "period") ended March 31, 2008, as follows (reported in 000s): CLASS A CLASS B CLASS C NET SELLING DEFERRED DEFERRED COMMISSIONS SALES CHARGES SALES CHARGES --------------- ----------------- ----------------- $29 $66 $21 16 PHOENIX REAL ESTATE SECURITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (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 include 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 March 31, 2008, the Fund incurred administration fees totaling $455 (reported in 000s). PEPCO serves as the Fund's transfer agent with Boston Financial Data Services, Inc. serving as sub-transfer agent. For the period ended March 31, 2008, transfer agent fees were $1,595 (reported in 000s) as reported in the Statement of Operations. At March 31, 2008, PNX and its affiliates and Phoenix affiliated Funds held shares of the Fund which aggregated the following (reported in 000s): AGGREGATE NET ASSET SHARES VALUE ----------- ---------------- Class A........... 1,526 $44,288 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 March 31, 2008. 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 March 31, 2008, were as follows: LONG-TERM (REPORTED IN 000S) ------------------------------ PURCHASES SALES ------------- ------------ $112,110 $219,260 There were no purchases or sales of long-term U.S. Government or agency securities. 17 PHOENIX REAL ESTATE SECURITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) 5. CAPITAL SHARES Transactions (reported in 000s) in shares of capital stock, for the periods ended as indicated below, were as follows:
--------------------- --------------------- SHARES AMOUNT SHARES AMOUNT ------- --------- ------- --------- ----------------------------- --------------------- --------------------- REAL ESTATE 10/1/07 - 12/1/06 - SECURITIES FUND 3/31/08 9/30/07 ----------------------------- --------------------- --------------------- CLASS A Shares sold 5,470 $ 159,888 14,072 $ 511,268 Reinvestment of distributions 1,185 34,024 1,620 57,889 Redemptions (9,325) (277,199) (16,115) (560,580) ------- --------- ------- --------- Net increase / (decrease) (2,670) $ (83,287) (423) $ 8,577 ======= ========= ======= ========= CLASS B Shares sold 43 $ 1,251 156 $ 5,740 Reinvestment of distributions 44 1,251 76 2,681 Redemptions (271) (7,980) (637) (22,093) ------- --------- ------- --------- Net increase / (decrease) (184) $ (5,478) (405) $ (13,672) ======= ========= ======= ========= CLASS C Shares sold 216 $ 6,455 928 $ 34,094 Reinvestment of distributions 88 2,516 124 4,416 Redemptions (763) (22,632) (1,067) (37,102) ------- --------- ------- --------- Net increase / (decrease) (459) $ (13,661) (15) $ 1,408 ======= ========= ======= ========= CLASS I Shares sold 222 $ 6,457 1,059 $ 36,256 Reinvestment of distributions 28 809 4 140 Redemptions (406) (13,225) (98) (3,366) ------- --------- ------- --------- Net increase / (decrease) (156) $ (5,959) 965 $ 33,030 ======= ========= ======= =========
18 PHOENIX REAL ESTATE SECURITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) --------------------- SHARES AMOUNT ------- --------- ----------------------------- --------------------- REAL ESTATE 12/1/05 - SECURITIES FUND 11/30/06 ----------------------------- --------------------- CLASS A Shares sold 16,009 $ 514,058 Reinvestment of distributions 785 22,530 Redemptions (9,234) (291,228) ------- --------- Net increase / (decrease) 7,560 $ 245,360 ======= ========= CLASS B Shares sold 265 $ 8,295 Reinvestment of distributions 43 1,193 Redemptions (540) (16,975) ------- --------- Net increase / (decrease) (232) $ (7,487) ======= ========= CLASS C Shares sold 1,101 $ 35,276 Reinvestment of distributions 51 1,431 Redemptions (603) (18,976) ------- --------- Net increase / (decrease) 549 $ 17,731 ======= ========= CLASS I Shares sold -- $ -- Reinvestment of distributions -- -- Redemptions -- -- ------- --------- Net increase / (decrease) -- $ -- ======= ========= 19 PHOENIX REAL ESTATE SECURITIES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) 6. 10% SHAREHOLDERS As of March 31, 2008, the Fund had individual shareholder accounts and/or omnibus shareholder accounts (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 --------------- -------------- 12% 1 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. 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 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 this matter will be material to these financial statements. 10. OTHER On February 7, 2008, PNX announced that it intends to spin off its asset management subsidiary ("spin-off"), Phoenix Investment Partners, Ltd. ("PXP"), to PNX' shareholders. The Fund's Administrator and Transfer Agent PEPCO, a subsidiary of PXP, and the Fund's Adviser, PIC, also a subsidiary of PXP, are also intended to be part of the spin-off. 20 RESULTS OF SHAREHOLDER MEETING NOTES TO FINANCIAL STATEMENTS MARCH 31, 2008 (UNAUDITED) (CONTINUED) 11. SUBSEQUENT EVENT Effective May 1, 2008, the voluntary expense limitation previously provided by the Adviser has been discontinued. 21 CONSIDERATION OF ADVISORY AND SUB-ADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES MARCH 31, 2008 (UNAUDITED) The Board of Trustees of the Trust, along with the Boards of Trustees of the other trusts in the Phoenix family of funds (collectively, the "Board"), is responsible for determining whether to approve the entering into and continuation of each investment advisory and subadvisory agreement (each, an "Agreement") for the Phoenix funds (collectively, the "Funds"). At meetings held on November 13 - 16, 2007, the Board, including a majority of the Trustees who are not interested persons as defined in Section 2(a)(19) of the Investment Company Act of 1940, considered and approved the continuation of each Agreement, as further discussed below. In approving each Agreement, the Board determined that the continued retention of the applicable adviser or subadviser was in the best interests of each Fund and its shareholders. The Trustees considered each Fund separately, although they also collectively took into account those interests that all the Funds had in common. In reaching their decisions, the Board considered information furnished throughout the year at regular Board meetings as well as information prepared specifically in connection with the annual review process. During the review process, the Board received assistance and advice from and met separately with independent legal counsel. The Board's determination contemplated a number of factors that the Trustees believed to be relevant. Some of the factors that the Board considered are described below, although the Trustees did not identify any particular information or factor as controlling, but, instead, the Board considered the Agreements in the totality of the circumstances. Each individual Trustee may have evaluated the information presented differently, giving different weights to different factors. NATURE, EXTENT AND QUALITY OF SERVICES. The majority of the Funds(1) are managed using a "manager of managers" structure that generally involves the use of one or more subadvisers to manage some or all of a Fund's portfolio. Under this structure, Phoenix Investment Counsel, Inc. ("PIC") is responsible for evaluating and selecting subadvisers on an ongoing basis and for making any recommendations to the Board regarding hiring, retaining or replacing subadvisers. In considering the Agreement with PIC, therefore, the Trustees considered PIC's process for supervising and managing the Funds' subadvisers, including (a) PIC's ability to select and monitor the subadvisers; (b) PIC's ability to provide the services necessary to monitor the subadvisers' compliance with the Funds' respective investment objectives, policies and restrictions as well as provide other oversight activities; and (c) PIC's ability and willingness to identify instances in which a subadviser should be replaced and to carry out the required changes. The Trustees also considered: (d) the experience, capability and integrity of PIC's management and other personnel; (e) the financial position of PIC; (f) the quality of PIC's own regulatory and legal compliance policies, procedures and systems; (g) the nature, extent and quality of administrative and other services provided by PIC to the Funds; and (h) PIC's supervision of the Funds' other service providers. Finally, the Board also noted the extent of benefits that are provided to Fund shareholders as a result of being part of the Phoenix family of Funds, including the right to exchange investments between the same class of Funds without a sales charge, the ability to reinvest Fund dividends into other Funds and the right to combine holdings in other Funds to obtain a reduced sales charge. With respect to the subadvisory Agreements, the Board noted that each subadviser provided information with respect to portfolio management, compliance with the respective Fund's investment policies and procedures, and compliance with applicable securities laws and ------------------------ (1) DURING THE PERIOD BEING REPORTED, THE ONLY FUND THAT DID NOT EMPLOY A MANAGER OF MANAGERS STRUCTURE WAS THE PHOENIX GROWTH & INCOME FUND, WHICH IS A SERIES OF PHOENIX EQUITY SERIES FUND. PIC ACTED AS THE ADVISER FOR THAT FUND WITHOUT EMPLOYING A SUBADVISER, WHICH MEANS THAT PIC PROVIDED FOR THAT FUND THE SERVICES THAT FOR THE OTHER FUNDS WERE PROVIDED BY SUBADVISERS. THE BOARD CONSIDERED THE PIC AGREEMENT WITH RESPECT TO THAT FUND IN THAT CONTEXT. 22 CONSIDERATION OF ADVISORY AND SUB-ADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES MARCH 31, 2008 (UNAUDITED) (CONTINUED) assurances thereof. In considering the renewal of the subadvisory Agreements, the Board considered each subadviser's investment management process, including (a) the experience, capability and integrity of the subadviser's management and other personnel committed by the subadviser to manage its respective Fund(s); (b) the financial position of the subadviser; (c) the quality and commitment of the subadviser's regulatory and legal compliance policies, procedures and systems; and (d) the subadviser's brokerage and trading practices. After considering all of the information provided to them, the Trustees concluded that the nature, extent and quality of the services provided by PIC and each subadviser were reasonable and beneficial to the Funds and their shareholders. INVESTMENT PERFORMANCE. The Board placed significant emphasis on its consideration of the investment performance of the Funds, in view of its importance to shareholders, and the Board evaluated Fund performance in the context of the manager-of-managers structure. The Board also considered that PIC continued to be proactive in seeking to replace and/or add subadvisers as necessary, with a view toward improving Fund performance over the long term. While consideration was given to performance reports and discussions at Board meetings throughout the year, particular attention in assessing performance was given to a report (the "Lipper Report") for the Funds prepared by Lipper Inc. ("Lipper") and furnished specifically for the contract renewal process. Lipper is an independent provider of investment company data. The Lipper Report presented each Fund's short-term and long-term performance relative to a peer group of other mutual funds and benchmarks, as selected by Lipper. The Board considered the composition of each peer group, selection criteria and the appropriateness of the benchmark used for each Fund. The Board also assessed each Fund's performance relative to the fees and expenses of each Fund as well as PIC's profitability. The Board noted that while many of the Funds had generally performed in line with their respective benchmarks and peer groups during the periods measured, some of the Funds had underperformed compared to their respective benchmarks and/or peer groups. The Board noted that certain of the Funds' underperformance was slight. Also, some of the Funds underperforming their benchmarks and/or peer groups for a given period had outperformed such benchmarks and/or peer groups during other periods. Where significant, the Board extensively considered the performance of the underperforming Funds and the reasons for the performance issues. The Board discussed the possible reasons for the underperformance with PIC and spoke with PIC regarding plans to monitor and address performance issues during the coming year. After considering all of the information presented, the Board ultimately concluded that it should approve the continuation of the Agreements. However, the Board noted that certain Funds' performance would continue to be closely monitored by PIC so that if performance over a longer period of time did not improve, the subadviser would be replaced in a timely manner. PROFITABILITY. The Board also considered the level of profits realized by PIC and its affiliates in connection with the operation of the Funds. In this regard, the Board reviewed the analysis presented by PIC regarding its overall profitability for its management of the Phoenix retail fund family as well as the profits of its affiliates for managing and providing other services to each Fund. In addition to the fees paid to PIC and its affiliates, the Trustees considered any other benefits derived by PIC or its affiliates from their relationship with the Funds. Specific attention was paid to the methodology used to allocate costs to each Fund, in recognition of the fact that allocation methodologies are inherently subjective and various allocation methodologies may each be reasonable while producing different results. In this regard, the Board noted that the allocations appeared reasonable and concluded that the profitability to PIC from each Fund was reasonable in light of the quality of all services rendered to the Funds by PIC and its affiliates. 23 CONSIDERATION OF ADVISORY AND SUB-ADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES MARCH 31, 2008 (UNAUDITED) (CONTINUED) The Board did not separately review profitability information for each subadviser, noting that the subadvisory fees are paid by PIC rather than the Funds. MANAGEMENT FEES AND TOTAL EXPENSES. In evaluating the management fees and total expenses of each Fund, the Board reviewed information provided by PIC and comparisons to other funds in each Fund's peer group as presented in the Lipper Report. The Board noted that several of the Funds had incurred one-time costs related to a shareholder proxy, causing expenses for the period shown to be higher than would be expected in future periods. The Board also noted that certain Funds had higher gross expenses when expressed as a percentage of net assets than those of such Funds' larger peers, which the Trustees considered in the context of the Funds' expectations for future growth. Finally, the Board noted that several of the Funds had fee waivers and/or expense caps in place to limit the total expenses incurred by the Funds and their shareholders. Based upon the information presented by PIC and Lipper, the Trustees determined that the management fees charged by PIC and the total expenses of the Funds were reasonable. The Board did not receive comparative fee information relating specifically to subadvisory fees, in light of the fact that the subadvisory fees are paid by PIC and not by the Funds. ECONOMIES OF SCALE. The Board noted that the management fees for several of the Funds included breakpoints based on assets under management, and fee waivers and/or expense caps were also in place for several of the Funds. The Board determined that PIC and the Funds likely would achieve certain economies of scale, particularly in relationship to certain fixed costs, and shareholders of the Funds would have an opportunity to benefit from these economies of scale. In considering the subadvisory Agreements, the Board also considered the existence of any economies of scale and whether they would be passed along to the Funds' shareholders, but noted that any such economies would likely be generated at the Fund level rather than at the subadviser level. 24 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. 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 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 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 * Pursuant to the Trust's retirement policy, Messrs. Conway, Dalzell-Payne and Jeffries will retire from the Board of Trustees in May, 2008. -------------------------------------------------------------------------------- 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. THIS PAGE INTENTIONALLY BLANK. [LOGO OMITTED] --------------- PHOENIX PRESORTED STANDARD Phoenix Equity Planning Corporation U.S. POSTAGE P.O. Box 150480 PAID Hartford, CT 06115-0480 Lancaster, PA Permit No. 1793 --------------- For more information about Phoenix mutual funds, please call your financial representative, contact us at 1-800-243-1574 or visit PHOENIXFUNDS.COM. PXP5032a 3-08 BPD34822 ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. INVESTMENTS. (a) 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. (b) Not applicable. 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) Not applicable. (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 June 6, 2008 ----------------------------------------------------------------------- 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 June 6, 2008 ----------------------------------------------------------------------- By (Signature and Title)* /s/ W. Patrick Bradley ------------------------------------------------------- W. Patrick Bradley, Chief Financial Officer and Treasurer (principal financial officer) Date June 6, 2008 ----------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.