N-Q 1 g31579phnxassettrust_nq.txt PHOENIX ASSET TRUST N-Q 2006 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-07705 ------------------ Phoenix Asset Trust ---------------------------------------------------------- (Exact name of registrant as specified in charter) 1800 Avenue of the Stars, 2nd Floor Los Angeles, California 90067 ---------------------------------------------------------- (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 Secretary 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: (860) 403-5000 --------------- Date of fiscal year end: December 31 ------------ Date of reporting period: March 31, 2006 --------------- Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. SCHEDULE OF INVESTMENTS. The Schedules of Investments are attached herewith. PHOENIX ASSET TRUST (FORMERLY PHOENIX-KAYNE FUNDS) GLOSSARY MARCH 31, 2006 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 FGIC FINANCIAL GUARANTY INSURANCE COMPANY FNMA OR "FANNIE MAE" FEDERAL NATIONAL MORTGAGE ASSOCIATION FSA FINANCIAL SECURITY ASSURANCE, INC. GNMA OR "GINNIE MAE" GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MBIA MUNICIPAL BOND INSURANCE ASSOCIATION SPONSORED ADR 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. XLCA XL CAPITAL ASSURANCE Phoenix CA Intermediate Tax-Free Bond Fund SCHEDULE OF INVESTMENTS MARCH 31, 2006 (UNAUDITED)
PAR VALUE (000) VALUE --------- ---------- MUNICIPAL TAX-EXEMPT BONDS(d)--99.3% DEVELOPMENT REVENUE--4.6% Los Angeles County Public Works Financing Authority Series A 5.50%, 10/1/18 (FSA Insured) $ 450 $ 486,931 Menlo Park Community Development Agency Las Pulgas Community Development Project 5.375%, 6/1/16 (AMBAC Insured) 250 255,693 Ontario Redevelopment Financing Authority Project No. 1 6.90%, 8/1/10 (MBIA Insured) 70 79,016 Ontario Redevelopment Financing Authority Project No. 1 Center City & Cimarron 5.25%, 8/1/13 (MBIA Insured) 500 539,205 Riverside County Redevelopment Agency Jurupa Valley Project Area 5.25%, 10/1/17 (AMBAC Insured) 250 269,543 ---------- 1,630,388 ---------- FACILITIES REVENUE--2.5% California State Public Works Board Series C 5.25%, 11/1/20 500 525,540 Los Angeles State Building Authority Department of General Services Series A 5.375%, 5/1/06 200 200,236 Oakland State Building Authority Series A 5%, 4/1/17 (AMBAC Insured) 150 155,451 ---------- 881,227 ---------- GENERAL OBLIGATION--16.4% Brea Olinda Unified School District Series A 6%, 8/1/15 (FGIC Insured) 150 172,766 California State 6.25%, 4/1/08 825 866,110 California State 5.50%, 4/1/10 (MBIA Insured) 200 214,156 California State Unrefunded Balance - 2001 5.25%, 6/1/16 80 81,005 Desert Community College District 5%, 8/1/18 (MBIA Insured) 990 1,056,023 Grossmont Cuyamaca Community College Series A 5%, 8/1/19 (MBIA Insured) 250 263,770 Metropolitan Water District Southern California Series A 5.25%, 3/1/11 180 187,673 PAR VALUE (000) VALUE --------- ---------- GENERAL OBLIGATION--(CONTINUED) Oakland Unified School District Alameda County School Improvements 5%, 8/1/16 (FSA Insured) $ 400 $ 416,760 San Diego County Certificates of Participation 5.25%, 11/1/15 (AMBAC Insured) 960 1,029,283 San Francisco City and County Educational Facilities Unified School District Series B 5.50%, 6/15/12 500 521,825 Santa Ana Unified School District 5.70%, 8/1/22 (FGIC Insured) 400 435,408 Wiseburn School District Series A 5%, 8/1/17 (MBIA Insured) 580 621,000 ---------- 5,865,779 ---------- GENERAL REVENUE--10.2% California State Public Works Board 5%, 11/1/17 (XLCA Insured) 460 487,628 Puerto Rico Public Finance Corp. Series A 5.25%, 8/1/30 (AMBAC Insured)(c) 500 536,170 San Jose Financing Authority Convention Center Project Series F 5%, 9/1/15 (MBIA Insured) 1,000 1,048,140 Santa Clara County Financing Authority Leasing Revenue 7.75%, 11/15/11 (AMBAC Insured) 400 478,028 South Coast Air Quality Management District 6%, 8/1/11 (AMBAC Insured) 1,000 1,101,000 ---------- 3,650,966 ---------- HIGHER EDUCATION REVENUE--2.3% California Public Works Board Community Colleges Series A 5.25%, 12/1/13 290 304,488 University of California Series A 5%, 5/15/10 (AMBAC Insured) 500 527,880 ---------- 832,368 ---------- MEDICAL REVENUE--1.0% California Health Facilities Financing Authority Series A 5%, 11/15/14 250 261,410 San Joaquin County General Hospital Project Certificates of Participation 5.25%, 9/1/12 (MBIA Insured) 100 105,829 ---------- 367,239 ----------
1 Phoenix CA Intermediate Tax-Free Bond Fund PAR VALUE (000) VALUE --------- ---------- MULTIFAMILY REVENUE--1.1% California Housing Authority Finance Agency Multi-Family Housing Series B 3.11%, 2/1/31 $ 400 $ 400,000 MUNICIPAL UTILITY DISTRICT REVENUE--10.1% City of San Diego Public Facilities Financial Authority Series A 5%, 5/15/13 (AMBAC Insured) 300 300,363 Los Angeles Wastewater System Revenue 5%, 6/1/08 (FSA Insured) 375 386,329 Los Angeles Water and Power Series A A2, 5%, 7/1/19 760 801,108 Sacramento Municipal Utility District Electricity Revenue Series L 5.10%, 7/1/13 (AMBAC Insured) 500 518,860 Sacramento Municipal Utility District Electricity Revenue Series O 5.25%, 8/15/10 (MBIA Insured) 500 534,040 Sacramento Municipal Utility District Electricity Revenue Series O 5.25%, 8/15/15 (MBIA Insured) 310 332,379 Sacramento Municipal Utility District Electricity Revenue Series O 5.25%, 8/15/17 (MBIA Insured) 200 213,636 Sacramento Municipal Utility District Electricity Revenue Series P 5.25%, 8/15/17 (FSA Insured) 500 532,845 ---------- 3,619,560 ---------- POWER REVENUE--9.5% California State Department of Water Resource Power Supply Series A 5.25%, 5/1/09 (MBIA Insured) 1,000 1,049,040 City of Pasadena 5%, 6/1/17 (MBIA Insured) 300 314,874 Los Angeles Department of Water & Power Series A-A-3 5.25%, 7/1/18 300 301,152 Northern California Power Agency Public Power Revenue Hydroelectric Project No. 1 Series A 5%, 7/1/15 (MBIA Insured) 1,000 1,040,130 Southern California Public Power Authority Series B 5%, 7/1/12 (FSA Insured) 635 680,212 ---------- 3,385,408 ---------- PAR VALUE (000) VALUE --------- ---------- PRE-REFUNDED--8.5% California Educational Facilities Authority Chapman University 5.375%, 10/1/16(b) $ 250 $ 257,227 Contra Costa County Home Mortgage Revenue 7.50%, 5/1/14 (GNMA Collateralized)(b) 500 613,490 Cypress Residential Mortgage Revenue Series B 7.25%, 1/1/12(b) 200 235,714 Duarte Redevelopment Agency Single Family Mortgage Revenue Series A 6.875%, 11/1/11 (FNMA Collateralized)(b) 300 347,229 Modesto Wastewater Treatment Facilities Revenue 6%, 11/1/12 (MBIA Insured)(b) 735 830,521 San Francisco Bay Area Rapid Transit District Sales Tax Revenue 5.25%, 7/1/17 Prerefunded 7/1/08 @ 101 320 335,114 Stockton Housing Facilities Revenue O'Connor Woods Project A 5.60%, 3/20/28 Prerefunded 9/20/17 @ 100 (GNMA Collateralized) 200 201,796 Truckee Public Financing Authority Leasing Revenue Series A 5.875%, 11/1/20 Prerefunded 11/1/08 @ 102 (AMBAC Insured) 200 215,394 ---------- 3,036,485 ---------- SCHOOL DISTRICT REVENUE--2.9% Irvine Unified School District Community Facilities District No. 86-1 5.50%, 11/1/13 (AMBAC Insured) 1,000 1,047,670 TRANSPORTATION REVENUE--7.1% Alameda Corridor Transportation Authority Series A 5.125%, 10/1/16 (MBIA Insured) 150 158,407 Alameda Corridor Transportation Authority Series A 5.125%, 10/1/17 (MBIA Insured) 125 131,964 Port of Oakland California Series I 5.60%, 11/1/19 (MBIA Insured) 1,000 1,049,970 San Francisco Bay Area Rapid Transit Financing Authority 5.25%, 7/1/17 180 187,866 San Francisco City & County Airports Commission Second Series - Issue 10B 5.375%, 5/1/17 (MBIA Insured) 1,000 1,021,430 ---------- 2,549,637 ---------- VETERAN REVENUE--2.6% State of California Veterans Bonds Series 5.15%, 12/1/14 895 932,375 2 Phoenix CA Intermediate Tax-Free Bond Fund PAR VALUE (000) VALUE --------- ----------- WATER & SEWER REVENUE--20.5% California State Department of Water Resources Series T 5.125%, 12/1/12 $ 250 $ 261,900 California State Department of Water Resources Series U 5.125%, 12/1/15 90 94,494 California State Department of Water Resources Series W 5.50%, 12/1/13 (FSA-CR Insured) 1,000 1,111,320 East Bay Municipal Utility District Water System Revenue 5.25%, 6/1/18 (MBIA Insured) 1,035 1,105,111 El Dorado Irrigation District Certificates of Participation Series A 5.25%, 3/1/16 (FGIC Insured) 365 392,963 Los Angeles Waste Water System Revenue Series B 5%, 6/1/14 (FGIC Insured) 700 727,783 Metropolitan Water District of Southern California Series B 5%, 7/1/13 500 536,685 Modesto Waste Water Series A 5%, 11/1/19 (FSA Insured) 245 259,715 Mountain View Shoreline Regional Park Community Series A 5.50%, 8/1/21 (MBIA Insured) 1,000 1,026,040 Redlands Financing Authority Series A 5%, 9/1/17 (FSA Insured) 1,000 1,054,560 Sweetwater California Authority Water Revenue 5.25%, 4/1/10 (AMBAC Insured) 200 205,520 Westlands Water District Revenue Certificates of Participation 5.25%, 9/1/14 (MBIA Insured) 500 542,410 ----------- 7,318,501 ----------- ----------------------------------------------------------------------------- TOTAL MUNICIPAL TAX-EXEMPT BONDS (IDENTIFIED COST $35,479,212) 35,517,603 ----------------------------------------------------------------------------- TOTAL INVESTMENTS--99.3% (IDENTIFIED COST $35,479,212) 35,517,603(a) Other assets and liabilities, net--0.7% 261,536 ----------- NET ASSETS--100.0% $35,779,139 =========== (a) Federal Income Tax Information: Net unrealized appreciation of investment securities is comprised of gross appreciation of $464,476 and gross depreciation of $426,085 for federal income tax purposes. At March 31, 2006, the aggregate cost of securities for federal income tax purposes was $35,479,212. (b) Escrowed to maturity. (c) Variable or step coupon security; interest rate shown reflects the rate currently in effect. (d) At March 31, 2006, the concentration of the Fund's investments by state or territory determined as a percentage of net assets is as follows: California 97.8%. At March 31, 2006, 78% 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 37%, AMBAC 19%, and FSA 14%. 3 Phoenix Intermediate Bond Fund SCHEDULE OF INVESTMENTS MARCH 31, 2006 (UNAUDITED) PAR VALUE (000) VALUE ------------ ----------- U.S. GOVERNMENT SECURITIES--20.2% U.S. TREASURY NOTES--20.2% U.S. Treasury Note 6%, 8/15/09 $ 600 $ 621,868 U.S. Treasury Note 6.50%, 2/15/10 4,200 4,444,620 U.S. Treasury Note 5.75%, 8/15/10 4,400 4,561,735 U.S. Treasury Note 4.75%, 5/15/14 600 594,938 -------------------------------------------------------------------------------- TOTAL U.S. GOVERNMENT SECURITIES (IDENTIFIED COST $10,546,917) 10,223,161 -------------------------------------------------------------------------------- AGENCY MORTGAGE-BACKED SECURITIES--4.9% FHLMC 7.50%, 4/1/14 65 68,091 FHLMC 7%, 4/1/16 53 54,907 FNMA 7.50%, 7/1/09 23 23,915 FNMA 7%, 5/1/14 52 53,541 FNMA 8%, 1/1/15 12 12,414 FNMA 8.50%, 7/1/27 315 338,318 GNMA 7%, 7/20/13 61 63,191 GNMA 8%, '21-'27 191 201,912 GNMA 8.50%, 12/15/22 2 2,102 GNMA 8.50%, 8/15/24 71 76,956 GNMA 8.50%, 8/15/25 12 13,418 GNMA 8.50%, 6/15/26 2 2,198 GNMA 7%, 6/15/31 566 590,135 GNMA 6%, 8/15/31 341 345,609 GNMA 6.50%, 10/15/31 611 633,926 -------------------------------------------------------------------------------- TOTAL AGENCY MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $2,458,716) 2,480,633 -------------------------------------------------------------------------------- AGENCY NON-MORTGAGE-BACKED SECURITIES--27.9% FFCB 7.125%, 11/16/15 500 536,246 FHLB 5.15%, 1/28/13 345 337,128 FHLB 6.30%, 5/13/13 220 223,254 FHLB 7.23%, 9/8/15 1,500 1,611,139 FHLB 6.05%, 3/2/16 1,500 1,493,799 FHLB 6%, 4/27/22 1,020 990,798 FHLMC 6%, 11/20/15 1,000 998,208 FHLMC 6.125%, 12/1/15 1,500 1,500,076 FHLMC 7.09%, 11/22/16 850 857,749 FNMA 6.375%, 6/15/09 1,000 1,036,889 PAR VALUE (000) VALUE ------------ ----------- FNMA 6.625%, 11/15/10 $ 1,000 $ 1,060,531 FNMA 6%, 5/16/11 875 875,877 FNMA 6.96%, 9/5/12 1,063 1,087,192 FNMA 5.125%, 1/2/14 1,500 1,470,339 -------------------------------------------------------------------------------- TOTAL AGENCY NON-MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $14,327,019) 14,079,225 -------------------------------------------------------------------------------- DOMESTIC CORPORATE BONDS--45.5% AEROSPACE & DEFENSE--4.6% Boeing Capital Corp. 5.75%, 2/15/07 815 817,693 Honeywell International, Inc. 7%, 3/15/07 1,500 1,520,379 ----------- 2,338,072 ----------- BREWERS--3.0% Anheuser-Busch Cos., Inc. 5.05%, 10/15/16 1,600 1,533,754 CONSUMER FINANCE--7.7% American General Finance Corp. 5.375%, 10/1/12 1,500 1,473,429 General Electric Capital Corp. Series A 4.625%, 9/15/09 800 783,585 National Rural Utilities Cooperative Finance Corp. 7.25%, 3/1/12 1,500 1,622,343 ----------- 3,879,357 ----------- HOUSEHOLD PRODUCTS--4.2% Colgate-Palmolive Co. 5.98%, 4/25/12 620 642,898 Kimberly-Clark Corp. 5%, 8/15/13 1,500 1,474,446 ----------- 2,117,344 ----------- HYPERMARKETS & SUPER CENTERS--3.2% Wal-Mart Stores, Inc. 4.55%, 5/1/13 1,700 1,618,788 INTEGRATED OIL & GAS--2.1% Conoco Funding Co. 6.35%, 10/15/11 1,000 1,043,871 INTEGRATED TELECOMMUNICATION SERVICES--2.4% AT&T, Inc. 5.875%, 2/1/12 1,200 1,208,575 INVESTMENT BANKING & BROKERAGE--7.4% Bear Stearns Co., Inc. 7.80%, 8/15/07 825 852,151 Goldman Sachs Group, Inc. (The) 5.25%, 4/1/13 1,425 1,391,269 Morgan Stanley 6.60%, 4/1/12 1,400 1,470,679 ----------- 3,714,099 ----------- 1 Phoenix Intermediate Bond Fund PAR VALUE (000) VALUE ------------ ----------- LIFE & HEALTH INSURANCE--3.1% MetLife, Inc. 6.125%, 12/1/11 $ 1,500 $ 1,549,117 OTHER DIVERSIFIED FINANCIAL SERVICES--2.1% Heller Financial, Inc. 7.375%, 11/1/09 1,000 1,065,130 PHARMACEUTICALS--2.7% Johnson & Johnson 6.625%, 9/1/09 1,300 1,363,843 RESTAURANTS--3.0% McDonald's Corp. 6%, 4/15/11 1,500 1,534,168 ----------------------------------------------------------------------------- TOTAL DOMESTIC CORPORATE BONDS (IDENTIFIED COST $23,515,383) 22,966,118 ----------------------------------------------------------------------------- TOTAL INVESTMENTS--98.5% (IDENTIFIED COST $50,848,035) 49,749,137(a) Other assets and liabilities, net--1.5% 753,892 ----------- NET ASSETS--100.0% $50,503,029 =========== (a) Federal Income Tax Information: Net unrealized depreciation of investment securities is comprised of gross appreciation of $116,034 and gross depreciation of $1,219,865 for federal income tax purposes. At March 31, 2006, the aggregate cost of securities for federal income tax purposes was $50,852,968. 2 Phoenix Overseas Fund SCHEDULE OF INVESTMENTS MARCH 31, 2006 (UNAUDITED) SHARES VALUE ---------- ---------- FOREIGN COMMON STOCKS(b)--96.1% AUSTRALIA--3.1% Rio Tinto Ltd. (Diversified Metals & Mining)(d) 23,000 1,298,323 Westpac Banking Corp. (Diversified Banks) 37,800 644,595 ---------- 1,942,918 ---------- BELGIUM--0.6% Fortis (Other Diversified Financial Services) 11,400 407,271 FRANCE--19.1% Air Liquide SA (Industrial Gases)(d) 7,285 1,516,715 AXA Sponsored ADR (Multi-line Insurance) 26,824 937,767 BNP Paribas SA (Diversified Banks) 17,000 1,579,110 Carrefour SA (Hypermarkets & Super Centers)(d) 18,100 962,929 L'Oreal SA (Personal Products)(d) 11,100 977,932 LVMH Moet Hennessy Louis Vuitton SA (Apparel, Accessories & Luxury Goods) 8,200 803,922 Sanofi-aventis (Pharmaceuticals)(d) 15,000 1,426,961 Schneider Electric SA (Electrical Components & Equipment)(d) 7,600 820,621 Societe Generale (Diversified Banks)(d) 6,600 992,584 Total SA Sponsored ADR (Integrated Oil & Gas) 13,506 1,779,145 ---------- 11,797,686 ---------- GERMANY--6.4% BASF AG (Diversified Chemicals) 10,800 846,797 Henkel KGaA (Household Products) 7,500 807,097 SAP AG (Application Software) 5,340 1,158,430 Siemens AG (Industrial Conglomerates) 12,000 1,120,337 ---------- 3,932,661 ---------- IRELAND--2.1% Allied Irish Banks plc (Diversified Banks) 28,875 689,000 Bank of Ireland (Diversified Banks) 33,400 621,307 ---------- 1,310,307 ---------- JAPAN--24.6% Canon, Inc. (Office Electronics) 22,000 1,456,075 Denso Corp. (Auto Parts & Equipment) 22,600 892,863 Kao Corp. (Household Products)(d) 38,000 1,000,850 Millea Holdings, Inc. (Property & Casualty Insurance) 64 1,266,950 Mitsubishi UFJ Financial Group, Inc. (Diversified Banks) 103 1,575,191 SHARES VALUE --------- ---------- JAPAN--(CONTINUED) Murata Manufacturing Co. Ltd. (Electronic Equipment Manufacturers) 21,000 1,422,005 Nomura Holdings, Inc. (Investment Banking & Brokerage) 37,400 834,112 Secom Co. Ltd. (Specialized Consumer Services)(d) 15,000 767,205 Shin-Etsu Chemical Co. Ltd. (Diversified Chemicals) 22,700 1,232,396 SMC Corp. (Electrical Components & Equipment) 9,800 1,527,035 Sony Corp. (Consumer Electronics)(d) 17,300 801,062 Takeda Pharmaceutical Co. Ltd. (Pharmaceuticals) 12,500 712,617 TDK Corp. (Electronic Equipment Manufacturers)(d) 7,800 587,816 Toyota Motor Corp. (Automobile Manufacturers)(d) 20,100 1,098,071 ---------- 15,174,248 ---------- NETHERLANDS--5.2% ABN AMRO Holding N.V. (Diversified Banks) 28,700 860,464 Koninklijke Philips Electronics N.V. (Consumer Electronics)(d) 44,500 1,504,042 Wolters Kluwer N.V. (Publishing & Printing) 33,000 823,020 ---------- 3,187,526 ---------- NORWAY--2.0% Statoil ASA (Integrated Oil & Gas) 43,100 1,242,966 SINGAPORE--2.0% DBS Group Holdings, Ltd. (Diversified Banks)(d) 120,000 1,210,508 SPAIN--3.0% Banco Bilbao Vizcaya Argentaria SA (Diversified Banks)(d) 39,110 816,154 Telefonica SA (Integrated Telecommunication Services) 64,532 1,012,736 ---------- 1,828,890 ---------- SWITZERLAND--8.3% Credit Suisse Group (Diversified Capital Markets)(d) 11,900 667,729 Nestle S.A. Registered Shares (Packaged Foods & Meats) 2,800 831,205 Novartis AG ADR (Pharmaceuticals) 22,976 1,273,790 1 Phoenix Overseas Fund Roche Holding AG (Pharmaceuticals) 5,700 848,671 Swiss Reinsurance (Reinsurance) 11,400 796,640 UBS AG Registered Shares (Diversified Capital Markets) 6,480 711,798 ------------ 5,129,833 ------------ UNITED KINGDOM--19.7% BHP Billiton plc (Diversified Metals & Mining) 52,550 960,028 BP plc (Integrated Oil & Gas) 174,750 2,006,876 BT Group plc (Integrated Telecommunication Services) 233,275 899,752 Diageo plc (Distillers & Vintners) 46,800 737,082 GlaxoSmithKline plc (Pharmaceuticals) 68,273 1,785,202 HBOS plc (Diversified Banks) 43,000 717,949 Kingfisher plc (Home Improvement Retail) 216,000 898,796 Lloyds TSB Group plc (Diversified Banks) 67,610 646,651 Reed Elsevier plc (Publishing & Printing) 99,100 950,418 Reuters Group plc (Publishing & Printing) 87,000 599,328 Royal Bank of Scotland Group plc (Diversified Banks) 28,000 911,166 Tesco plc (Food Retail) 98,700 565,891 Vodafone Group plc Sponsored ADR (Wireless Telecommunication Services)(d) 24,050 502,645 ------------ 12,181,784 ------------ ----------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $41,276,594) 59,346,598 ----------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--96.1% (IDENTIFIED COST $41,276,594) 59,346,598 ----------------------------------------------------------------------------- SHORT-TERM INVESTMENTS--22.6% MONEY MARKET MUTUAL FUNDS--18.3% State Street Navigator Prime Portfolio (4.814% seven day effective yield)(c) 11,272,440 11,272,440 PAR VALUE (000) VALUE ------------ ------------ COMMERCIAL PAPER(e)--4.3% Merrill Lynch & Co. 4.82%, 4/3/06 $ 814 813,782 UBS Americas, Inc. 4.83%, 4/3/06 1,857 1,856,502 ------------ 2,670,284 ------------ ----------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $13,942,724) 13,942,724 ----------------------------------------------------------------------------- TOTAL INVESTMENTS--118.7% (IDENTIFIED COST $55,219,318) 73,289,322(a) Other assets and liabilities, net--(18.7)% (11,556,254) ------------ NET ASSETS--100.0% $ 61,733,068 ============ (a) Federal Income Tax Information: Net unrealized appreciation of investment securities is comprised of gross appreciation of $18,158,965 and gross depreciation of $188,865 for federal income tax purposes. At March 31, 2006, the aggregate cost of securities for federal income tax purposes was $55,319,222. (b) Common stock 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 1D "Foreign Security Country Determination" in the Notes to Schedules of Investments. (c) Represents security purchased with cash collateral received for securities on loan. (d) All or a portion of security is on loan. (e) The rate shown is the discount rate. 2 Phoenix Overseas Fund INDUSTRY DIVERSIFICATION AS A PERCENTAGE OF TOTAL VALUE OF TOTAL LONG-TERM INVESTMENTS (UNAUDITED) Apparel, Accessories & Luxury Goods 1.4% Application Software 1.9 Auto Parts & Equipment 1.5 Automobile Manufacturers 1.8 Distillers & Vintners 1.2 Diversified Banks 19.0 Diversified Capital Markets 1.2 Diversified Chemicals 3.5 Diversified Metals & Mining 3.8 Electrical Components & Equipment 4.0 Electronic Equipment Manufacturers 3.4 Food Retail 1.0 Home Improvement Retail 1.5 Household Appliances 1.3 Household Products 1.7 Hypermarkets & Super Centers 1.6 Industrial Conglomerates 4.4 Industrial Gases 2.6 Integrated Oil & Gas 8.5 Integrated Telecommunication Services 3.2 Investment Banking & Brokerage 1.4 Multi-Sector Holdings 1.8 Multi-line Insurance 1.6 Office Electronics 2.5 Packaged Foods & Meats 1.4 Personal Products 3.0 Pharmaceuticals 10.2 Property & Casualty Insurance 3.5 Publishing & Printing 4.0 Specialized Consumer Services 1.3 Wireless Telecommunication Services 0.8 ------ 100.0% ====== Phoenix Rising Dividends Fund SCHEDULE OF INVESTMENTS MARCH 31, 2006 (UNAUDITED) SHARES VALUE --------- ---------- DOMESTIC COMMON STOCKS--99.1% AIR FREIGHT & LOGISTICS--1.8% United Parcel Service, Inc. Class B 22,700 $1,801,926 ASSET MANAGEMENT & CUSTODY BANKS--1.5% State Street Corp. 24,500 1,480,535 COMPUTER HARDWARE--4.5% Diebold, Inc.(c) 42,300 1,738,530 International Business Machines Corp. 33,010 2,722,335 ---------- 4,460,865 ---------- DATA PROCESSING & OUTSOURCED SERVICES--4.0% Automatic Data Processing, Inc. 43,830 2,002,154 Paychex, Inc. 46,900 1,953,854 ---------- 3,956,008 ---------- DIVERSIFIED BANKS--4.2% U.S. Bancorp 53,300 1,625,650 Wells Fargo & Co. 40,080 2,559,910 ---------- 4,185,560 ---------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--2.0% Cintas Corp. 46,600 1,986,092 ELECTRIC UTILITIES--1.5% Southern Co. (The) 45,000 1,474,650 FOOTWEAR--2.1% NIKE, Inc. Class B 25,100 2,136,010 HEALTH CARE EQUIPMENT--3.7% Biomet, Inc. 47,100 1,672,992 Medtronic, Inc. 39,700 2,014,775 ---------- 3,687,767 ---------- HOME IMPROVEMENT RETAIL--2.6% Home Depot, Inc. (The) 60,750 2,569,725 HOUSEHOLD PRODUCTS--3.2% Procter & Gamble Co. (The) 55,500 3,197,910 HYPERMARKETS & SUPER CENTERS--4.8% Costco Wholesale Corp. 33,900 1,836,024 Wal-Mart Stores, Inc. 63,100 2,980,844 ---------- 4,816,868 ---------- SHARES VALUE --------- ---------- INDUSTRIAL CONGLOMERATES--6.4% 3M Co. 27,500 $2,081,475 General Electric Co. 122,560 4,262,637 ---------- 6,344,112 ---------- INDUSTRIAL MACHINERY--1.5% Illinois Tool Works, Inc. 16,120 1,552,517 INTEGRATED OIL & GAS--8.5% Chevron Corp. 37,800 2,191,266 ConocoPhillips 34,800 2,197,620 Exxon Mobil Corp. 67,840 4,128,742 ---------- 8,517,628 ---------- INTEGRATED TELECOMMUNICATION SERVICES--2.7% AT&T, Inc. 100,500 2,717,520 INVESTMENT BANKING & BROKERAGE--2.6% Morgan Stanley 41,200 2,588,184 LIFE & HEALTH INSURANCE--3.1% AFLAC, Inc. 36,500 1,647,245 MetLife, Inc. 30,400 1,470,448 ---------- 3,117,693 ---------- MULTI-LINE INSURANCE--3.0% American International Group, Inc. 45,300 2,993,877 OIL & GAS EXPLORATION & PRODUCTION--1.1% Apache Corp. 16,100 1,054,711 OTHER DIVERSIFIED FINANCIAL SERVICES--5.0% Bank of America Corp. 53,800 2,450,052 Citigroup, Inc. 54,100 2,555,143 ---------- 5,005,195 ---------- PERSONAL PRODUCTS--1.7% Avon Products, Inc. 53,500 1,667,595 PHARMACEUTICALS--8.0% Johnson & Johnson 68,670 4,066,637 Pfizer, Inc. 157,500 3,924,900 ---------- 7,991,537 ---------- PUBLISHING & PRINTING--2.1% Gannett Co., Inc. 34,600 2,073,232 REGIONAL BANKS--1.5% Synovus Financial Corp. 56,200 1,522,458 1 Phoenix Rising Dividends Fund
SHARES VALUE ------------ ------------- SEMICONDUCTORS--5.3% Intel Corp. 145,600 $ 2,817,360 Linear Technology Corp. 70,700 2,480,156 ------------- 5,297,516 ------------- SOFT DRINKS--4.6% Coca-Cola Co. (The) 58,760 2,460,281 PepsiCo, Inc. 36,500 2,109,335 ------------- 4,569,616 ------------- SPECIALTY CHEMICALS--2.5% Sigma-Aldrich Corp.(c) 38,000 2,500,020 SYSTEMS SOFTWARE--3.6% Microsoft Corp. 133,880 3,642,875 -------------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $92,953,768) 98,910,202 -------------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--99.1% (IDENTIFIED COST $92,953,768) 98,910,202 -------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS--5.2% MONEY MARKET MUTUAL FUNDS--4.4% State Street Navigator Prime Portfolio (4.814% seven day effective yield)(b) 4,341,600 4,341,600 PAR VALUE (000) VALUE ------------ ------------- COMMERCIAL PAPER(D)--0.8% UBS Americas, Inc. 4.83%, 4/3/06 $ 791 790,788 -------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $5,132,388) 5,132,388 -------------------------------------------------------------------------------- TOTAL INVESTMENTS--104.3% (IDENTIFIED COST $98,086,156) 104,042,590(a) Other assets and liabilities, net--(4.3)% (4,269,634) ------------- NET ASSETS--100.0% $ 99,772,956 =============
(a) Federal Income Tax Information: Net unrealized appreciation of investment securities is comprised of gross appreciation of $7,641,851 and gross depreciation of $2,675,332 for federal income tax purposes. At March 31, 2006, the aggregate cost of securities for federal income tax purposes was $99,076,071. (b) Represents security purchased with cash collateral received for securities on loan. (c) All or a portion of security is on loan. (d) The rate shown is the discount rate. 2 Phoenix Small-Mid Cap Fund SCHEDULE OF INVESTMENTS MARCH 31, 2006 (UNAUDITED)
SHARES VALUE ---------- ------------- DOMESTIC COMMON STOCKS--99.4% ADVERTISING--2.5% Catalina Marketing Corp.(d) 146,010 $ 3,372,831 AIR FREIGHT & LOGISTICS--3.2% Pacer International, Inc.(d) 133,000 4,346,440 APPLICATION SOFTWARE--9.2% FactSet Research Systems, Inc.(d) 38,075 1,688,626 Fair Isaac Corp.(d) 116,585 4,619,098 Jack Henry & Associates, Inc.(d) 265,815 6,079,189 ------------- 12,386,913 ------------- ASSET MANAGEMENT & CUSTODY BANKS--4.6% Eaton Vance Corp.(d) 228,508 6,256,549 CONSUMER FINANCE--2.7% World Acceptance Corp.(b) 132,800 3,638,720 DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--7.1% Cintas Corp. 53,565 2,282,940 Copart, Inc.(b)(d) 176,500 4,844,925 Equifax, Inc.(d) 67,885 2,528,038 ------------- 9,655,903 ------------- ELECTRONIC EQUIPMENT MANUFACTURERS--3.3% Mettler-Toledo International, Inc.(b) 75,000 4,525,500 ENVIRONMENTAL & FACILITIES SERVICES--3.8% ABM Industries, Inc.(d) 112,530 2,157,200 Stericycle, Inc.(b)(d) 43,400 2,934,708 ------------- 5,091,908 ------------- GENERAL MERCHANDISE STORES--2.6% 99 Cents Only Stores(b)(d) 260,000 3,525,600 HEALTH CARE EQUIPMENT--4.4% Diagnostic Products Corp.(d) 125,700 5,987,091 HOMEFURNISHING RETAIL--4.2% Rent-A-Center, Inc.(b) 221,250 5,661,787 HOUSEHOLD PRODUCTS--2.7% Church & Dwight Co., Inc. 98,000 3,618,160 INDUSTRIAL CONGLOMERATES--2.7% Teleflex, Inc. 50,610 3,625,194 SHARES VALUE ------------- ------------- INDUSTRIAL MACHINERY--2.8% Donaldson Co., Inc.(d) 110,200 $ 3,723,658 INSURANCE BROKERS--2.3% Brown & Brown, Inc.(d) 95,600 3,173,920 IT CONSULTING & OTHER SERVICES--4.1% SRA International, Inc. Class A(b)(d) 148,000 5,584,040 LIFE & HEALTH INSURANCE--3.6% StanCorp Financial Group, Inc. 89,000 4,815,790 OFFICE ELECTRONICS--2.6% Zebra Technologies Corp. Class A(b)(d) 79,300 3,546,296 OIL & GAS EQUIPMENT & SERVICES--5.5% Universal Compression Holdings, Inc.(b)(d) 146,000 7,397,820 PAPER PACKAGING--3.8% Bemis Co., Inc.(d) 162,944 5,145,772 PROPERTY & CASUALTY INSURANCE--2.7% Cincinnati Financial Corp.(d) 85,674 3,604,305 REGIONAL BANKS--5.1% UCBH Holdings, Inc.(d) 365,000 6,905,800 REINSURANCE--3.4% Reinsurance Group of America, Inc.(d) 98,600 4,662,794 SEMICONDUCTORS--4.5% Microchip Technology, Inc.(d) 168,000 6,098,400 SPECIALIZED CONSUMER SERVICES--3.8% Regis Corp.(d) 147,000 5,068,560 SPECIALTY CHEMICALS--2.2% Valspar Corp. (The)(d) 109,040 3,038,945 --------------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $97,765,930) 134,458,696 --------------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--99.4% (IDENTIFIED COST $97,765,930) 134,458,696 --------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS--19.9% MONEY MARKET MUTUAL FUNDS--19.3% State Street Navigator Prime Portfolio (4.814% seven day effective yield)(c) 26,179,255 26,179,255
1 Phoenix Small-Mid Cap Fund PAR VALUE (000) VALUE --------- ------------- COMMERCIAL PAPER(e)--0.6% UBS Americas, Inc. 4.83%, 4/3/06 $ 778 $ 777,791 ----------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $26,957,046) 26,957,046 ----------------------------------------------------------------------------- TOTAL INVESTMENTS--119.3% (IDENTIFIED COST $124,722,976) 161,415,742(a) Other assets and liabilities, net--(19.3)% (26,137,784) ------------- NET ASSETS--100.0% $ 135,277,958 ============= (a) Federal Income Tax Information: Net unrealized appreciation of investment securities is comprised of gross appreciation of $ 36,692,766 and gross depreciation of $0 for federal income tax purposes. At March 31, 2006, the aggregate cost of securities for federal income tax purposes was $124,722,976. (b) Non-income producing. (c) Represents security purchased with cash collateral received for securities on loan. (d) All or a portion of security is on loan. (e) The rate shown is the discount rate. 2 PHOENIX ASSET TRUST (FORMERLY PHOENIX-KAYNE FUNDS) NOTES TO SCHEDULES OF INVESTMENTS MARCH 31, 2006 (UNAUDITED) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Phoenix Asset Trust in the preparation of the Schedules of Investments. The preparation of the Schedules of Investments 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 Schedules of Investments. 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 in determining value 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. 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. 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. 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. D. 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. E. SECURITY LENDING Certain Funds loan securities to qualified brokers through an agreement with State Street Bank (the "Custodian") and the Fund. Under the terms of the agreement, the Fund receives 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 consists of cash, securities issued or guaranteed by the U.S. Government or its agencies and the sovereign debt of foreign countries. Cash collateral has been invested in short-term money market funds. Dividends earned on the collateral and premiums paid by the borrower 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. PHOENIX ASSET TRUST (FORMERLY PHOENIX-KAYNE FUNDS) NOTES TO SCHEDULES OF INVESTMENTS MARCH 31, 2006 (UNAUDITED) (CONTINUED) NOTE 2--CREDIT RISK AND ASSET CONCENTRATIONS In countries with limited or developing markets, investments may present greater risks than in more developed markets and the prices of such investments may be volatile. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of these investments and the income they generate, as well as a Fund's ability to repatriate such amounts. Certain Funds 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. 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 CA Intermediate Tax-Free Bond Fund invests primarily in California municipal securities and is more susceptible to economic, political and other developments that may adversely affect issuers of such securities, than a more geographically diversified fund. Such developments could result in certain adverse consequences including impairing the market value and marketability of the securities, as well as impairing the ability of certain issues of California municipal securities to pay principal and interest on their obligations. At March 31, 2006, the CA Intermediate Tax-Free Bond Fund was 99% invested in Municipal Tax-Exempt securities, of which 98% was issued by California state municipalities. At March 31, 2006, the Intermediate Bond Fund held $26,783,019 in investments issued by the U.S. Government, comprising 53% of the total net assets of the Fund. NOTE 3--MERGERS The Board of Trustees has unanimously approved the merger of the Phoenix Intermediate Bond Fund with and into the Phoenix Bond Fund of the Phoenix Opportunities Trust. Pursuant to an Agreement and Plan of Reorganization (the "Agreement") approved by the Board the Phoenix Intermediate Bond Fund will transfer all or substantially all of its assets to the Phoenix Bond Fund, in exchange for shares of the Phoenix Bond Fund and the assumption by Phoenix Bond Fund of all the liabilities of the Phoenix Intermediate Bond Fund. Following the exchange, the Phoenix Intermediate Bond Fund will distribute the shares of the Phoenix Bond Fund to its shareholders pro rata, in liquidation of the Phoenix Intermediate Bond Fund. The merger will take place on or about May 19, 2006. The Board of Trustees has unanimously approved the merger of the Phoenix Overseas Fund with and into the Phoenix Foreign Opportunities Fund of the Phoenix Adviser Trust. Pursuant to an Agreement and Plan of Reorganization (the "Agreement") approved by the Board the Phoenix Overseas Fund will transfer all or substantially all of its assets to the Phoenix Foreign Opportunities Fund, in exchange for shares of the Phoenix Foreign Opportunities Fund and the assumption by Phoenix Foreign Opportunities Fund of all the liabilities of the Phoenix Overseas Fund. Following the exchange, the Phoenix Overseas Fund will distribute the shares of the Phoenix Foreign Opportunities Fund to its shareholders pro rata, in liquidation of the Phoenix Overseas Fund. The merger will take place on or about May 19, 2006. ITEM 2. 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 the 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 last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 3. EXHIBITS. Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 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 Asset Trust -------------------------------------------------------------------- By (Signature and Title)* /s/ George R. Aylward ------------------------------------------------------- George R. Aylward, Executive Vice President (principal executive officer) Date May 25, 2006 ---------------------------------------------------------------------------- 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, Executive Vice President (principal executive officer) Date May 25, 2006 ---------------------------------------------------------------------------- By (Signature and Title)* /s/ W. Patrick Bradley ------------------------------------------------------- W. Patrick Bradley, Chief Financial Officer and Treasurer (principal financial officer) Date May 23, 2006 ---------------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.