-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EVL3kAoad6oQOo2nKqgcTHdRRsl1264JfPNv3dkxg09hBWOLNqgZrkpo4uEi30Oe zdWW0Eck2Ul8EVEKhgcnjQ== 0000935069-04-000683.txt : 20040430 0000935069-04-000683.hdr.sgml : 20040430 20040430142301 ACCESSION NUMBER: 0000935069-04-000683 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040229 FILED AS OF DATE: 20040430 EFFECTIVENESS DATE: 20040430 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PHOENIX INVESTMENT TRUST 97 CENTRAL INDEX KEY: 0001045018 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-08343 FILM NUMBER: 04769088 BUSINESS ADDRESS: STREET 1: 101 MUNSON ST CITY: GREENFIELD STATE: MA ZIP: 01301 BUSINESS PHONE: 800 243-1574 MAIL ADDRESS: STREET 1: 56 PROSPECT STREET STREET 2: P.O. BOX 150480 CITY: HARTFORD STATE: CT ZIP: 06115-0480 N-CSRS 1 g10177investtrust_sar04.txt PHOENIX INVESTMENT TRUST SAR 04 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 811-08343 --------- Phoenix Investment Trust 97 -------------------------------------------------- (Exact name of registrant as specified in charter) 56 Prospect Street Hartford, CT 06115 -------------------------------------------------- (Address of principal executive offices) (Zip code) PFPC Inc. 301 Bellevue Parkway Wilmington, DE 19809 -------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 302-791-3197 ------------ Date of fiscal year end: August 31, 2004 --------------- Date of reporting period: February 29, 2004 ----------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. Semiannual Report [GRAPHIC OMITTED] FEBRUARY 29, 2004 Phoenix Small Cap Value Fund Phoenix-Oakhurst Value Equity Fund [GRAPHIC OMITTED] Do you want to stop receiving fund documents by mail? Go to Phoenixinvestments.com, log in and sign up for E-Deliver [LOG0 OMITTED] PHOENIX INVESTMENT PARTNERS, LTD. COMMITTED TO INVESTOR SUCCESS SM MESSAGE FROM THE CHAIRMAN DEAR SHAREHOLDER: Over the last six months, financial services have seen significant change. National news reflected regulatory attention to a few mutual fund companies' business conduct. In turn, certain industry-wide practices came under increased scrutiny. Your Fund's Board of Trustees recognizes the seriousness of these issues. As a result, it has expanded its review of policies and procedures to insure compliance with applicable rules and regulations. Additionally, the Board has undertaken a review of its own structure and governance protocols to ensure that our practices are not only compliant with regulatory standards, but, whenever practical, also conform to best practices that value your interests and help you invest wisely. I hope that you'll take time to review the activities and performance information included in this semiannual report. We've witnessed new life in the equity markets, and I am encouraged that our overall economy has begun a more rewarding period. Now is an opportune time for you to review your investments with your financial adviser to be sure your portfolio is best positioned to achieve long-term success. Keep in mind that finding the best balance of performance and protection requires discipline and diversification 1. Your investment in Phoenix Small Cap Value Fund and Phoenix-Oakhurst Value Equity Fund may help you in this effort. To learn more about your investments and investing, visit PhoenixInvestments.com. Sincerely, /s/ PHILIP R. McLOUGHLIN - ------------------------ Philip R. McLoughlin Chairman, Phoenix Funds MARCH 1, 2004 1 DIVERSIFICATION DOES NOT GUARANTEE AGAINST A LOSS, AND THERE IS NO GUARANTEE THAT A DIVERSIFIED PORTFOLIO WILL OUTPERFORM A NON-DIVERSIFIED PORTFOLIO. - -------------------------------------------------------------------------------- Mutual funds are not insured by the FDIC; are not deposits or other obligations of a bank and are not guaranteed by a bank; and are subject to investment risks, including possible loss of the principal invested. - -------------------------------------------------------------------------------- 1 TABLE OF CONTENTS Phoenix Small Cap Value Fund .............................................. 3 Phoenix-Oakhurst Value Equity Fund ........................................ 11 Notes to Financial Statements ............................................. 18 This report is not authorized for distribution to prospective investors in the Phoenix Investment Trust 97 unless preceded or accompanied by an effective Prospectus which includes information concerning the sales charge, the Fund's record and other pertinent information. PHOENIX SMALL CAP VALUE FUND INVESTMENTS AT FEBRUARY 29, 2004 (UNAUDITED) SHARES VALUE ------- ------------ COMMON STOCKS--98.2% Domestic Common Stocks--97.4% AEROSPACE & DEFENSE--1.7% DRS Technologies, Inc.(b) ...................... 24,400 $ 735,904 Esterline Technologies Corp.(b) ................ 17,700 492,060 InVision Technologies, Inc.(b) ................. 29,000 1,016,740 Moog, Inc. Class A(b) .......................... 25,650 921,604 ------------ 3,166,308 ------------ AIR FREIGHT & COURIERS--0.1% Hub Group, Inc. Class A(b) ..................... 3,300 93,819 UTI Worldwide, Inc. ............................ 2,100 94,857 ------------ 188,676 ------------ AIRLINES--0.5% Atlantic Coast Airlines Holdings, Inc.(b) ...... 123,900 903,231 APPAREL RETAIL--2.3% Finish Line, Inc. (The) Class A(b) ............. 31,800 1,100,598 Goody's Family Clothing, Inc. .................. 10,400 97,760 Men's Wearhouse, Inc. (The)(b) ................. 50,900 1,330,017 Pacific Sunwear of California, Inc.(b) ......... 72,300 1,733,031 ------------ 4,261,406 ------------ APPAREL, ACCESSORIES & LUXURY GOODS--1.0% Kellwood Co. ................................... 36,200 1,518,952 Quiksilver, Inc.(b) ............................ 11,900 233,478 ------------ 1,752,430 ------------ APPLICATION SOFTWARE--0.1% MRO Software, Inc.(b) .......................... 7,900 109,573 ASSET MANAGEMENT & CUSTODY BANKS--0.1% MCG Capital Corp. .............................. 4,200 83,370 AUTO PARTS & EQUIPMENT--0.1% Dura Automotive Systems, Inc. Class A(b) ....... 10,600 135,680 BIOTECHNOLOGY--1.5% Gen-Probe, Inc.(b) ............................. 79,700 2,724,943 BROADCASTING & CABLE TV--0.7% Hearst-Argyle Television, Inc. ................. 47,500 1,251,625 SHARES VALUE ------- ------------ BUILDING PRODUCTS--1.9% Griffon Corp.(b) ............................... 21,700 $ 487,816 Lennox International, Inc. ..................... 57,000 1,060,770 USG Corp.(b) ................................... 49,800 862,536 York International Corp. ....................... 29,300 1,093,769 ------------ 3,504,891 ------------ CASINOS & GAMING--1.0% Aztar Corp.(b) ................................. 78,500 1,752,905 CATALOG RETAIL--0.9% Insight Enterprises, Inc.(b) ................... 78,700 1,673,949 COMMERCIAL PRINTING--0.3% Consolidated Graphics, Inc.(b) ................. 13,700 510,462 COMMUNICATIONS EQUIPMENT--3.9% Black Box Corp. ................................ 23,600 1,215,636 Harris Corp. ................................... 77,700 3,671,325 SeaChange International, Inc.(b) ............... 63,800 1,099,912 Tekelec(b) ..................................... 56,500 1,094,405 ------------ 7,081,278 ------------ COMPUTER STORAGE & PERIPHERALS--1.5% Hutchinson Technology, Inc.(b) ................. 32,900 936,663 Western Digital Corp.(b) ....................... 151,400 1,724,446 ------------ 2,661,109 ------------ CONSTRUCTION & ENGINEERING--1.9% Granite Construction, Inc. ..................... 52,900 1,282,825 Integrated Electrical Services, Inc.(b) ........ 42,500 465,800 MasTec, Inc.(b) ................................ 44,700 541,764 URS Corp.(b) ................................... 38,100 1,165,860 ------------ 3,456,249 ------------ CONSTRUCTION, FARM MACHINERY & HEAVY TRUCKS--1.7% NACCO Industries, Inc. Class A ................. 12,500 1,020,000 Terex Corp.(b) ................................. 58,000 2,031,740 ------------ 3,051,740 ------------ CONSUMER FINANCE--0.8% CompuCredit Corp.(b) ........................... 63,300 1,371,078 See Notes to Financial Statements 3 Phoenix Small Cap Value Fund SHARES VALUE ------- ------------ DATA PROCESSING & OUTSOURCED SERVICES--0.4% eFunds Corp.(b) ................................ 45,400 $ 735,934 DEPARTMENT STORES--1.3% Neiman Marcus Group, Inc. (The) Class A(b) ..... 40,400 2,281,792 Retail Ventures, Inc.(b) ....................... 2,300 13,754 ------------ 2,295,546 ------------ DIVERSIFIED COMMERCIAL SERVICES--1.5% Coinstar, Inc.(b) .............................. 79,600 1,438,372 Healthcare Services Group, Inc. ................ 1,600 36,448 NCO Group, Inc.(b) ............................. 28,100 620,167 SOURCECORP, Inc.(b) ............................ 11,700 312,624 TeleTech Holdings, Inc.(b) ..................... 50,000 387,500 ------------ 2,795,111 ------------ ELECTRIC UTILITIES--2.5% CenterPoint Energy, Inc. ....................... 248,200 2,596,172 WPS Resources Corp. ............................ 40,300 1,916,265 ------------ 4,512,437 ------------ ELECTRICAL COMPONENTS & EQUIPMENT--1.1% Acuity Brands, Inc. ............................ 49,100 1,199,513 Genlyte Group, Inc. (The)(b) ................... 14,400 810,288 ------------ 2,009,801 ------------ ELECTRONIC EQUIPMENT MANUFACTURERS--0.7% MTS Systems Corp. .............................. 12,600 338,562 Rofin-Sinar Technologies, Inc.(b) .............. 29,200 874,248 ------------ 1,212,810 ------------ ELECTRONIC MANUFACTURING SERVICES--0.8% Benchmark Electronics, Inc.(b) ................. 42,600 1,482,906 FOOTWEAR--0.4% Brown Shoe Co., Inc. ........................... 19,000 748,410 GAS UTILITIES--0.7% UGI Corp. ...................................... 40,800 1,350,480 HEALTH CARE EQUIPMENT--0.8% Invacare Corp. ................................. 32,800 1,465,504 HEALTH CARE FACILITIES--3.2% LifePoint Hospitals, Inc.(b) ................... 78,000 2,613,000 Province Healthcare Co.(b) ..................... 79,400 1,278,340 Sunrise Senior Living, Inc.(b) ................. 53,500 1,881,060 ------------ 5,772,400 ------------ HEALTH CARE SERVICES--0.9% US Oncology, Inc.(b) ........................... 133,800 1,665,810 SHARES VALUE ------- ------------ HEALTH CARE SUPPLIES--0.1% West Pharmaceutical Services, Inc. ............. 5,400 $ 199,152 HOMEBUILDING--3.3% Beazer Homes USA, Inc. ......................... 27,000 2,886,300 Dominion Homes, Inc.(b) ........................ 6,400 221,504 Meritage Corp.(b) .............................. 21,000 1,555,680 Standard-Pacific Corp. ......................... 12,400 648,644 WCI Communities, Inc.(b) ....................... 28,000 642,320 ------------ 5,954,448 ------------ HOTELS, RESORTS & CRUISE LINES--0.1% Marcus Corp. (The) ............................. 8,700 152,163 INDUSTRIAL MACHINERY--2.1% EnPro Industries, Inc.(b) ...................... 14,000 274,400 Flowserve Corp.(b) ............................. 96,400 2,094,772 Reliance Steel & Aluminum Co. .................. 47,300 1,487,112 ------------ 3,856,284 ------------ INTERNET SOFTWARE & SERVICES--1.8% Internet Security Systems, Inc.(b) ............. 150,700 2,668,897 ValueClick, Inc.(b) ............................ 59,800 654,810 ------------ 3,323,707 ------------ INVESTMENT BANKING & BROKERAGE--0.2% Investment Technology Group, Inc.(b) ........... 29,700 430,056 LEISURE PRODUCTS--1.6% Callaway Golf Co. .............................. 61,200 1,142,604 Nautilus Group, Inc. (The) ..................... 104,500 1,707,530 ------------ 2,850,134 ------------ LIFE & HEALTH INSURANCE--0.0% Ceres Group, Inc.(b) ........................... 13,300 75,677 METAL & GLASS CONTAINERS--0.2% Greif, Inc. Class A ............................ 12,300 440,340 MULTI-UTILITIES & UNREGULATED POWER--1.0% Energen Corp. .................................. 45,300 1,880,856 OFFICE SERVICES & SUPPLIES--1.3% IKON Office Solutions, Inc. .................... 103,800 1,219,650 United Stationers, Inc.(b) ..................... 28,700 1,139,677 ------------ 2,359,327 ------------ OIL & GAS DRILLING--0.7% Unit Corp.(b) .................................. 44,400 1,180,152 OIL & GAS EQUIPMENT & SERVICES--1.3% Oceaneering International, Inc.(b) ............. 63,500 2,170,430 See Notes to Financial Statements 4 Phoenix Small Cap Value Fund SHARES VALUE ------- ------------ OIL & GAS EQUIPMENT & SERVICES--(CONTINUED) Offshore Logistics, Inc.(b) .................... 7,000 $ 160,930 ------------ 2,331,360 OIL & GAS EXPLORATION & PRODUCTION--4.4% Chesapeake Energy Corp. ........................ 189,500 2,429,390 Newfield Exploration Co.(b) .................... 66,600 3,122,208 Nuevo Energy Co.(b) ............................ 51,100 1,454,817 XTO Energy, Inc. ............................... 33,500 999,640 ------------ 8,006,055 OIL & GAS REFINING, MARKETING & TRANSPORTATION--1.7% OMI Corp.(b) ................................... 144,800 1,565,288 Tesoro Petroleum Corp.(b) ...................... 85,200 1,554,900 ------------ 3,120,188 PACKAGED FOODS & MEATS--2.0% Chiquita Brands International, Inc.(b) ......... 88,900 2,020,697 Pilgrim's Pride Corp. .......................... 61,300 1,232,130 Ralcorp Holdings, Inc.(b) ...................... 11,900 382,109 ------------ 3,634,936 ------------ PAPER PRODUCTS--1.7% Potlatch Corp. ................................. 66,000 2,798,400 Schweitzer-Mauduit International, Inc. ......... 6,500 216,775 ------------ 3,015,175 ------------ PHARMACEUTICALS--3.0% King Pharmaceuticals, Inc.(b) .................. 150,000 2,890,500 Pharmaceutical Resources, Inc.(b) .............. 40,600 2,533,034 ------------ 5,423,534 ------------ PROPERTY & CASUALTY INSURANCE--4.6% FPIC Insurance Group, Inc.(b) .................. 16,300 399,024 LandAmerica Financial Group, Inc. .............. 56,500 2,644,200 Mercury General Corp. .......................... 43,800 2,238,180 Navigators Group, Inc. (The)(b) ................ 13,400 387,930 Selective Insurance Group, Inc. ................ 12,700 468,630 Stewart Information Services Corp. ............. 46,100 1,682,650 Zenith National Insurance Corp. ................ 14,800 592,888 ------------ 8,413,502 ------------ PUBLISHING & PRINTING--0.4% Media General, Inc. Class A .................... 1,200 77,760 Pulitzer, Inc. ................................. 12,200 629,520 ------------ 707,280 ------------ SHARES VALUE ------- ------------ RAILROADS--0.0% RailAmerica, Inc.(b) ........................... 6,800 $ 78,064 REAL ESTATE MANAGEMENT & DEVELOPMENT--0.2% Jones Lang LaSalle, Inc.(b) .................... 13,400 321,600 REGIONAL BANKS--5.4% First Republic Bank ............................ 23,200 931,944 Greater Bay Bancorp ............................ 59,500 1,639,820 Irwin Financial Corp. .......................... 55,900 1,651,845 Local Financial Corp.(b) ....................... 26,800 588,796 Provident Bankshares Corp. ..................... 24,600 810,570 Republic Bancorp, Inc. ......................... 4,200 57,960 South Financial Group, Inc. (The) .............. 64,600 1,990,972 TCF Financial Corp. ............................ 25,400 1,320,292 Texas Regional Bancshares, Inc. Class A ........ 15,100 597,960 U.S.B. Holding Co., Inc. ....................... 12,200 284,016 ------------ 9,874,175 ------------ REINSURANCE--2.7% Arch Capital Group Ltd.(b) ..................... 26,000 1,102,660 Everest Re Group Ltd. .......................... 38,800 3,390,732 PXRE Group Ltd. ................................ 15,300 411,723 ------------ 4,905,115 ------------ REITS--3.0% American Home Mortgage Investment Corp. ........ 16,500 437,250 Brandywine Realty Trust ........................ 18,700 532,950 CarrAmerica Realty Corp. ....................... 34,200 1,101,240 Equity Inns, Inc. .............................. 14,700 135,828 Friedman, Billings, Ramsey Group, Inc. Class A . 77,800 2,071,036 Kilroy Realty Corp. ............................ 17,600 587,840 Parkway Properties, Inc. ....................... 5,900 279,070 PS Business Parks, Inc. ........................ 5,100 232,050 ------------ 5,377,264 ------------ RESTAURANTS--1.3% Jack in the Box, Inc.(b) ....................... 12,200 303,414 Landry's Restaurants, Inc. ..................... 28,700 856,695 Lone Star Steakhouse & Saloon, Inc. ............ 18,300 497,211 O' Charley's, Inc.(b) .......................... 38,300 698,975 ------------ 2,356,295 ------------ SEMICONDUCTORS--0.5% DSP Group, Inc.(b) ............................. 35,600 906,732 SPECIALIZED FINANCE--1.2% GATX Corp. ..................................... 95,600 2,248,512 SPECIALTY CHEMICALS--2.5% Cytec Industries, Inc.(b) ...................... 52,700 1,833,433 See Notes to Financial Statements 5 Phoenix Small Cap Value Fund SHARES VALUE ------- ------------ SPECIALTY CHEMICALS--(CONTINUED) Ethyl Corp.(b) ................................. 2,900 $ 59,102 OM Group, Inc.(b) .............................. 86,300 2,651,136 ------------ 4,543,671 ------------ SPECIALTY STORES--1.5% Asbury Automotive Group, Inc.(b) ............... 2,600 46,410 Haverty Furniture Cos., Inc. ................... 10,800 230,364 Lithia Motors, Inc. Class A .................... 47,800 1,318,324 Movie Gallery, Inc. ............................ 19,100 382,000 TBC Corp.(b) ................................... 9,700 267,332 United Auto Group, Inc. ........................ 17,300 490,974 ------------ 2,735,404 ------------ STEEL--0.8% Commercial Metals Co. .......................... 22,800 677,160 Worthington Industries, Inc. ................... 46,500 805,845 ------------ 1,483,005 ------------ SYSTEMS SOFTWARE--1.0% Sybase, Inc.(b) ................................ 88,200 1,897,182 THRIFTS & MORTGAGE FINANCE--8.5% BankAtlantic Bancorp, Inc. Class A ............. 74,000 1,326,080 Capital Crossing Bank(b) ....................... 4,000 264,320 CharterMac ..................................... 8,000 174,480 Commercial Federal Corp. ....................... 31,000 869,240 Doral Financial Corp. .......................... 66,900 2,282,628 First Federal Capital Corp. .................... 5,700 120,669 FirstFed Financial Corp.(b) .................... 30,300 1,315,020 Flagstar Bancorp, Inc. 113,200 2,926,220 ITLA Capital Corp.(b) .......................... 2,500 119,975 New Century Financial Corp. .................... 60,700 2,974,300 R&G Financial Corp. Class B .................... 47,550 1,490,217 Saxon Capital, Inc.(b) ......................... 35,400 958,632 Sterling Financial Corp.(b) .................... 18,200 663,026 ------------ 15,484,807 ------------ TRADING COMPANIES & DISTRIBUTORS--0.8% Applied Industrial Technologies, Inc. .......... 20,900 434,720 Watsco, Inc. ................................... 37,900 1,036,944 ------------ 1,471,664 ------------ SHARES VALUE ------- ------------ TRUCKING--0.2% Dollar Thrifty Automotive Group, Inc.(b) ....... 13,200 $ 355,344 Marten Transport Ltd.(b) ....................... 4,900 86,730 ------------ 442,074 ------------ - -------------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $155,640,054) 177,167,942 - -------------------------------------------------------------------------------- Foreign Common Stocks(c)--0.8% REINSURANCE--0.8% Montpelier Re Holdings Ltd. (Bermuda) .......... 39,500 1,405,805 - -------------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $1,239,374) 1,405,805 - -------------------------------------------------------------------------------- TOTAL COMMON STOCKS--98.2% (IDENTIFIED COST $156,879,428) 178,573,747 - -------------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--98.2% (IDENTIFIED COST $156,879,428) 178,573,747 - -------------------------------------------------------------------------------- STANDARD PAR & POOR'S VALUE RATING (000) --------- ------ SHORT-TERM OBLIGATIONS--2.1% COMMERCIAL PAPER--2.1% Govco, Inc. 1.04%, 3/1/04 ................. A-1+ $1,695 1,695,000 Honeywell International, Inc. 1%, 3/2/04 .. A-1 2,140 2,139,940 - -------------------------------------------------------------------------------- TOTAL SHORT-TERM OBLIGATIONS (IDENTIFIED COST $3,834,940) 3,834,940 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS--100.3% (IDENTIFIED COST $160,714,368) 182,408,687(a) Other assets and liabilities, net--(0.3)% (628,663) ------------ NET ASSETS--100.0% $181,780,024 ============ (a) Federal Income Tax Information: Net unrealized appreciation of investment securities is comprised of gross appreciation of $23,058,282 and gross depreciation of $2,320,826 for federal income tax purposes. At February 29, 2004, the aggregate cost of securities for federal income tax purposes was $161,671,231. (b) Non-income producing. (c) Foreign Common Stocks are determined based on the country in which the stock is issued. The country at risk, noted parenthetically, is determined based on criteria described in Note 2G "Foreign security country determination" in the Notes to Financial Statements. See Notes to Financial Statements 6 Phoenix Small Cap Value Fund STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 29, 2004 (UNAUDITED) ASSETS Investment securities at value (Identified cost $160,714,368) $182,408,687 Cash 530 Receivables Dividends and interest 135,632 Fund shares sold 73,121 Receivable from adviser 40 Prepaid expenses 2,029 ------------ Total assets 182,620,039 ------------ LIABILITIES Payables Fund shares repurchased 480,689 Investment advisory fee 99,371 Distribution and service fees 95,041 Transfer agent fee 90,123 Financial agent fee 12,921 Trustees' fee 9,342 Accrued expenses 52,528 ------------ Total liabilities 840,015 ------------ NET ASSETS $181,780,024 ============ NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $165,416,043 Accumulated net investment loss (902,597) Accumulated net realized loss (4,427,741) Net unrealized appreciation 21,694,319 ------------ NET ASSETS $181,780,024 ============ CLASS A Shares of beneficial interest outstanding, no par value, unlimited authorization (Net Assets $82,816,034) 5,302,442 Net asset value per share $15.62 Offering price per share $15.62/(1-5.75%) $16.57 CLASS B Shares of beneficial interest outstanding, no par value, unlimited authorization (Net Assets $44,056,800) 2,969,901 Net asset value and offering price per share $14.83 CLASS C Shares of beneficial interest outstanding, no par value, unlimited authorization (Net Assets $54,907,190) 3,701,666 Net asset value and offering price per share $14.83 STATEMENT OF OPERATIONS SIX MONTHS ENDED FEBRUARY 29, 2004 (UNAUDITED) INVESTMENT INCOME Dividends $ 654,067 Interest 40,656 Foreign taxes withheld (2,329) ----------- Total investment income 692,394 ----------- EXPENSES Investment advisory fee 793,206 Service fees, Class A 99,963 Distribution and service fees, Class B 212,161 Distribution and service fees, Class C 269,326 Financial agent fee 74,576 Transfer agent 215,740 Registration 39,496 Printing 25,785 Trustees 19,057 Custodian 18,463 Professional 15,700 Miscellaneous 9,082 ----------- Total expenses 1,792,555 Less expenses borne by investment adviser (197,367) Custodian fees paid indirectly (197) ----------- Net expenses 1,594,991 ----------- NET INVESTMENT LOSS (902,597) ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain on securities 31,388,022 Net change in unrealized appreciation (depreciation) on investments (4,008,464) ----------- NET GAIN ON INVESTMENTS 27,379,558 ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $26,476,961 =========== See Notes to Financial Statements 7 Phoenix Small Cap Value Fund STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended 2/29/04 Year Ended (Unaudited) 8/31/03 ------------ ------------- FROM OPERATIONS Net investment income (loss) $ (902,597) $ (549,923) Net realized gain (loss) 31,388,022 (581,048) Net change in unrealized appreciation (depreciation) (4,008,464) 24,331,903 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 26,476,961 23,200,932 ------------ ------------ FROM SHARE TRANSACTIONS CLASS A Proceeds from sales of shares (661,101 and 1,907,326 shares, respectively) 9,668,362 21,435,568 Cost of shares repurchased (1,082,065 and 3,531,940 shares, respectively) (15,816,841) (37,879,871) ------------ ------------ Total (6,148,479) (16,444,303) ------------ ------------ CLASS B Proceeds from sales of shares (117,020 and 360,619 shares, respectively) 1,619,942 3,733,780 Cost of shares repurchased (329,008 and 900,192 shares, respectively) (4,550,833) (9,055,153) ------------ ------------ Total (2,930,891) (5,321,373) ------------ ------------ CLASS C Proceeds from sales of shares (197,420 and 588,971 shares, respectively) 2,717,498 6,011,638 Cost of shares repurchased (527,508 and 1,092,681 shares, respectively) (7,373,240) (10,996,219) ------------ ------------ Total (4,655,742) (4,984,581) ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (13,735,112) (26,750,257) ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS 12,741,849 (3,549,325) NET ASSETS Beginning of period 169,038,175 172,587,500 ------------ ------------ END OF PERIOD [INCLUDING ACCUMULATED NET INVESTMENT LOSS OF ($902,597) AND $0, RESPECTIVELY] $181,780,024 $169,038,175 ============ ============
See Notes to Financial Statements 8 Phoenix Small Cap Value Fund FINANCIAL HIGHLIGHTS (SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS A ---------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED AUGUST 31 2/29/04 --------------------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000 1999 Net asset value, beginning of period $13.42 $11.30 $12.72 $17.90 $11.41 $ 8.11 INCOME FROM INVESTMENT OPERATIONS Net investment income (loss)(1) (0.04) --(6) (0.01) (0.05) (0.08) 0.01 Net realized and unrealized gain (loss) 2.24 2.12 (1.39) (2.34) 7.38 3.31 ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 2.20 2.12 (1.40) (2.39) 7.30 3.32 ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS Distributions from net realized gains -- -- (0.02) (2.79) (0.81) (0.02) ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS -- -- (0.02) (2.79) (0.81) (0.02) ------ ------ ------ ------ ------ ------ Change in net asset value 2.20 2.12 (1.42) (5.18) 6.49 3.30 ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $15.62 $13.42 $11.30 $12.72 $17.90 $11.41 ====== ====== ====== ====== ====== ====== Total return(2) 16.39 %(7) 18.76% (11.02)% (14.24)% 66.15 % 40.90% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $82,816 $76,783 $83,005 $88,174 $79,254 $26,926 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(3) 1.40 %(5)(8) 1.40%(5) 1.40 %(5) 1.40 %(5) 1.40 %(5) 1.40% Net investment income (loss) (0.62)%(8) 0.04% (0.11)% (0.39)% (0.45)% 0.15% Portfolio turnover 128 %(7) 241% 123 % 229 % 191 % 203% CLASS B ---------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED AUGUST 31 2/29/04 --------------------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000 1999 Net asset value, beginning of period $12.79 $10.85 $12.31 $17.54 $11.27 $ 8.07 INCOME FROM INVESTMENT OPERATIONS Net investment income (loss)(1) (0.09) (0.08) (0.10) (0.16) (0.19) (0.06) Net realized and unrealized gain (loss) 2.13 2.02 (1.34) (2.28) 7.27 3.28 ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 2.04 1.94 (1.44) (2.44) 7.08 3.22 ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS Distributions from net realized gains -- -- (0.02) (2.79) (0.81) (0.02) ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS -- -- (0.02) (2.79) (0.81) (0.02) ------ ------ ------ ------ ------ ------ Change in net asset value 2.04 1.94 (1.46) (5.23) 6.27 3.20 ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $14.83 $12.79 $10.85 $12.31 $17.54 $11.27 ====== ====== ====== ====== ====== ====== Total return(2) 16.03 %(7) 17.88 % (11.72)% (14.89)% 64.97 % 39.86 % RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $44,057 $40,696 $40,382 $40,270 $26,625 $ 9,494 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(4) 2.15 %(5)(8) 2.15 %(5) 2.15 %(5) 2.15 %(5) 2.15 %(5) 2.15 % Net investment income (loss) (1.36)%(8) (0.71)% (0.86)% (1.14)% (1.20)% (0.60)% Portfolio turnover 128 %(7) 241 % 123 % 229 % 191 % 203 % (1) Computed using average shares outstanding. (2) Maximum sales charges are not reflected in the total return calculation. (3) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 1.62%, 1.71%, 1.64%, 1.58%, 1.67% and 1.87% for the periods ended February 29, 2004, August 31, 2003, 2002, 2001, 2000 and 1999, respectively. (4) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 2.37%, 2.46%, 2.39%, 2.33%, 2.42% and 2.62% for the periods ended February 29, 2004, August 31, 2003, 2002, 2001, 2000 and 1999, respectively. (5) The ratio of operating expenses to average net assets excludes the effect of expense offsets for custodian fees; if expense offsets were included, the ratio would not significantly differ. (6) Amount is less than $0.01. (7) Not annualized. (8) Annualized.
See Notes to Financial Statements 9 Phoenix Small Cap Value Fund FINANCIAL HIGHLIGHTS (SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS C ---------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED AUGUST 31 2/29/04 --------------------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000 1999 Net asset value, beginning of period $12.79 $10.85 $12.31 $17.54 $11.27 $ 8.07 INCOME FROM INVESTMENT OPERATIONS Net investment income (loss)(1) (0.09) (0.08) (0.10) (0.16) (0.19) (0.06) Net realized and unrealized gain (loss) 2.13 2.02 (1.34) (2.28) 7.27 3.28 ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 2.04 1.94 (1.44) (2.44) 7.08 3.22 ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS Distributions from net realized gains -- -- (0.02) (2.79) (0.81) (0.02) ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS -- -- (0.02) (2.79) (0.81) (0.02) ------ ------ ------ ------ ------ ------ Change in net asset value 2.04 1.94 (1.46) (5.23) 6.27 3.20 ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $14.83 $12.79 $10.85 $12.31 $17.54 $11.27 ====== ====== ====== ====== ====== ====== Total return(2) 15.95 %(5) 17.88 % (11.72)% (14.89)% 64.97 % 39.86 % RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $54,907 $51,559 $49,201 $45,450 $28,046 $ 6,465 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(3) 2.15 %(4)(6) 2.15 %(4) 2.15 %(4) 2.15 %(4) 2.15 %(4) 2.15 % Net investment income (loss) (1.36)%(6) (0.72)% (0.86)% (1.14)% (1.20)% (0.60)% Portfolio turnover 128 %(5) 241 % 123 % 229 % 191 % 203 % (1) Computed using average shares outstanding. (2) Maximum sales charges are not reflected in the total return calculation. (3) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 2.37%, 2.46%, 2.39%, 2.33%, 2.42% and 2.62% for the periods ended February 29, 2004, August 31, 2003, 2002, 2001, 2000 and 1999, respectively. (4) The ratio of operating expenses to average net assets excludes the effect of expense offsets for custodian fees; if expense offsets were included, the ratio would not significantly differ. (5) Not annualized. (6) Annualized.
See Notes to Financial Statements 10 PHOENIX-OAKHURST VALUE EQUITY FUND INVESTMENTS AT FEBRUARY 29, 2004 (UNAUDITED) SHARES VALUE ------ ------------ COMMON STOCKS--96.9% Domestic Common Stocks--94.1% ADVERTISING--0.9% Harte-Hanks, Inc. .............................. 27,200 $ 602,480 AEROSPACE & DEFENSE--2.9% United Defense Industries, Inc.(b) ............. 30,400 931,760 United Technologies Corp. ...................... 10,800 994,788 ----------- 1,926,548 ----------- AIR FREIGHT & COURIERS--3.1% CNF, Inc. ...................................... 15,200 505,400 FedEx Corp. .................................... 6,500 446,420 Ryder System, Inc. ............................. 29,400 1,083,096 ----------- 2,034,916 ----------- ASSET MANAGEMENT & CUSTODY BANKS--1.3% Bank of New York Co., Inc. (The) ............... 10,100 333,300 Mellon Financial Corp. ......................... 16,300 527,794 ----------- 861,094 ----------- CASINOS & GAMING--4.1% Alliance Gaming Corp.(b) ....................... 49,000 1,188,740 Caesars Entertainment, Inc. .................... 47,900 589,170 Mandalay Resort Group .......................... 18,500 950,900 ----------- 2,728,810 ----------- COMMUNICATIONS EQUIPMENT--1.3% Avocent Corp.(b) ............................... 11,500 444,705 Cisco Systems, Inc.(b) ......................... 17,300 399,630 ----------- 844,335 ----------- COMPUTER HARDWARE--0.5% Dell, Inc.(b) .................................. 9,300 303,645 COMPUTER STORAGE & PERIPHERALS--0.4% EMC Corp.(b) ................................... 19,600 280,672 DATA PROCESSING & OUTSOURCED SERVICES--0.7% Computer Sciences Corp.(b) ..................... 11,500 480,585 SHARES VALUE ------ ------------ DEPARTMENT STORES--2.1% Neiman Marcus Group, Inc. (The) Class A(b) ..... 24,500 $ 1,383,760 DIVERSIFIED BANKS--10.7% Bank of America Corp. .......................... 30,400 2,490,368 Bank One Corp. ................................. 21,900 1,182,162 FleetBoston Financial Corp. .................... 11,900 535,857 U.S. Bancorp ................................... 28,300 807,399 Wells Fargo & Co. .............................. 35,800 2,053,130 ----------- 7,068,916 ----------- DIVERSIFIED CAPITAL MARKETS--2.7% J.P. Morgan Chase & Co. ........................ 43,500 1,784,370 DIVERSIFIED CHEMICALS--2.6% Du Pont (E.I.) de Nemours & Co. ................ 38,800 1,749,492 DIVERSIFIED COMMERCIAL SERVICES--1.2% ARAMARK Corp. Class B .......................... 28,300 776,835 ELECTRONIC EQUIPMENT MANUFACTURERS--2.0% AVX Corp. ...................................... 36,800 619,712 Vishay Intertechnology, Inc.(b) ................ 30,400 684,304 ----------- 1,304,016 ----------- FOOTWEAR--1.6% Reebok International Ltd. ...................... 27,200 1,082,832 HEALTH CARE DISTRIBUTORS--4.2% Cardinal Health, Inc. .......................... 12,700 828,421 Omnicare, Inc. ................................. 29,400 1,354,164 Schein (Henry), Inc.(b) ........................ 8,700 622,050 ----------- 2,804,635 ----------- HEALTH CARE EQUIPMENT--1.5% Boston Scientific Corp.(b) ..................... 20,000 817,000 DENTSPLY International, Inc. ................... 3,800 166,478 ----------- 983,478 ----------- HEALTH CARE SUPPLIES--2.2% Fisher Scientific International, Inc.(b) ....... 27,500 1,464,375 See Notes to Financial Statements 11 Phoenix-Oakhurst Value Equity Fund SHARES VALUE ------ ------------ HOUSEHOLD PRODUCTS--3.3% Dial Corp. (The) ............................... 34,800 $ 1,000,152 Procter & Gamble Co. (The) ..................... 11,900 1,219,869 ----------- 2,220,021 ----------- INDUSTRIAL CONGLOMERATES--0.5% General Electric Co. ........................... 9,800 318,696 INDUSTRIAL GASES--0.3% Airgas, Inc. ................................... 10,400 215,800 INDUSTRIAL MACHINERY--1.5% Pall Corp. ..................................... 39,200 1,025,864 INSURANCE BROKERS--0.3% Willis Group Holdings Ltd. ..................... 4,400 168,740 INTEGRATED OIL & GAS--4.5% ChevronTexaco Corp. ............................ 6,500 574,275 Exxon Mobil Corp. .............................. 56,500 2,382,605 ----------- 2,956,880 ----------- INTEGRATED TELECOMMUNICATION SERVICES--2.7% SBC Communications, Inc. ....................... 28,300 679,483 Verizon Communications, Inc. ................... 29,400 1,126,902 ----------- 1,806,385 ----------- INVESTMENT BANKING & BROKERAGE--6.4% E*TRADE Financial Corp.(b) ..................... 45,700 653,967 Goldman Sachs Group, Inc. (The) ................ 5,300 561,111 Merrill Lynch & Co., Inc. ...................... 27,900 1,707,759 Morgan Stanley ................................. 21,900 1,308,744 ----------- 4,231,581 ----------- LEISURE PRODUCTS--1.9% Brunswick Corp. ................................ 8,000 314,880 Marvel Enterprises, Inc.(b) .................... 28,300 969,275 ----------- 1,284,155 ----------- LIFE & HEALTH INSURANCE--1.1% Prudential Financial, Inc. ..................... 16,300 756,157 METAL & GLASS CONTAINERS--1.3% Ball Corp. ..................................... 13,000 839,410 MOVIES & ENTERTAINMENT--1.5% Time Warner, Inc.(b) ........................... 56,500 974,625 MULTI-LINE INSURANCE--0.8% American International Group, Inc. ............. 7,500 555,000 SHARES VALUE ------ ------------ OIL & GAS DRILLING--0.6% Patterson-UTI Energy, Inc.(b) .................. 10,800 $ 391,824 OIL & GAS EQUIPMENT & SERVICES--1.8% Baker Hughes, Inc. ............................. 7,500 282,150 BJ Services Co.(b) ............................. 8,700 376,623 Schlumberger Ltd. .............................. 8,700 561,063 ----------- 1,219,836 ----------- OIL & GAS EXPLORATION & PRODUCTION--1.3% Anadarko Petroleum Corp. ....................... 17,300 886,625 OTHER DIVERSIFIED FINANCIAL SERVICES--4.3% Citigroup, Inc. ................................ 56,500 2,839,690 PACKAGED FOODS & MEATS--0.9% Kellogg Co. .................................... 15,200 600,248 PROPERTY & CASUALTY INSURANCE--0.9% Travelers Property Casualty Corp. Class A ...... 33,900 615,624 PUBLISHING & PRINTING--3.8% Belo Corp. Class A ............................. 22,400 624,960 Knight-Ridder, Inc. ............................ 8,500 635,460 McClatchy Co. (The) Class A .................... 9,500 651,510 Tribune Co. .................................... 12,900 644,226 ----------- 2,556,156 ----------- RAILROADS--2.2% Norfolk Southern Corp. ......................... 44,400 983,904 Union Pacific Corp. ............................ 7,600 483,664 ----------- 1,467,568 ----------- SEMICONDUCTOR EQUIPMENT--0.5% Applied Materials, Inc.(b) ..................... 15,200 322,848 SEMICONDUCTORS--0.5% Agere Systems, Inc. Class A(b) ................. 92,500 358,900 SOFT DRINKS--1.9% PepsiCo, Inc. .................................. 24,000 1,245,600 SPECIALIZED FINANCE--2.3% CIT Group, Inc. ................................ 38,000 1,499,860 SYSTEMS SOFTWARE--1.0% Oracle Corp.(b) ................................ 49,200 633,696 - -------------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $54,836,118) 62,457,583 - -------------------------------------------------------------------------------- See Notes to Financial Statements 12 Phoenix-Oakhurst Value Equity Fund SHARES VALUE ------ ------------ Foreign Common Stocks(c)--2.8% PHARMACEUTICALS--1.1% Teva Pharmaceutical Industries Ltd. ADR (Israel) 10,900 $ 708,500 PROPERTY & CASUALTY INSURANCE--1.7% ACE Ltd. (Bermuda) ............................. 26,000 1,168,960 - -------------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $1,512,276) 1,877,460 - -------------------------------------------------------------------------------- TOTAL COMMON STOCKS (IDENTIFIED COST $56,348,394) 64,335,043 - -------------------------------------------------------------------------------- EXCHANGE TRADED FUNDS--1.1% iShares Russell 1000 Value Index Fund .......... 11,800 715,552 - -------------------------------------------------------------------------------- TOTAL EXCHANGE TRADED FUNDS (IDENTIFIED COST $644,917) 715,552 - -------------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--98.0% (IDENTIFIED COST $56,993,311) 65,050,595 - -------------------------------------------------------------------------------- STANDARD PAR & POOR'S VALUE RATING (000) VALUE -------- ------ ----------- SHORT-TERM OBLIGATIONS--2.3% COMMERCIAL PAPER--2.3% Govco, Inc. 1.04%, 3/1/04 A-1+ $1,480 $ 1,480,000 - -------------------------------------------------------------------------------- TOTAL SHORT-TERM OBLIGATIONS (IDENTIFIED COST $1,480,000) 1,480,000 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS--100.3% (IDENTIFIED COST $58,473,311) 66,530,595(a) Other assets and liabilities, net--(0.3)% (172,132) ----------- NET ASSETS--100.0% $66,358,463 =========== (a) Federal Income Tax Information: Net unrealized appreciation of investment securities is comprised of gross appreciation of $7,881,157 and gross depreciation of $162,510 for federal income tax purposes. At February 29, 2004, the aggregate cost of securities for federal income tax purposes was $58,811,948. (b) Non-income producing. (c) Foreign Common Stocks are determined based on the country in which the stock is issued. The country at risk, noted parenthetically, is determined based on criteria described in Note 2G "Foreign security country determination" in the Notes to Financial Statements. See Notes to Financial Statements 13 Phoenix-Oakhurst Value Equity Fund STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 29, 2004 (UNAUDITED) ASSETS Investment securities at value (Identified cost $58,473,311) $ 66,530,595 Cash 3,329 Receivables Investment securities sold 643,406 Fund shares sold 55,255 Dividends and interest 68,191 Prepaid expenses 828 ------------ Total assets 67,301,604 ------------ LIABILITIES Payables Investment securities purchased 667,378 Fund shares repurchased 129,479 Transfer agent fee 37,158 Distribution and service fees 30,398 Professional fee 20,276 Investment advisory fee 18,602 Trustees' fee 9,342 Financial agent fee 6,730 Payable to adviser 78 Accrued expenses 23,700 ------------ Total liabilities 943,141 ------------ NET ASSETS $ 66,358,463 ============ NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $ 77,537,969 Accumulated net investment loss (5,066) Accumulated net realized loss (19,231,724) Net unrealized appreciation 8,057,284 ------------ NET ASSETS $ 66,358,463 ============ CLASS A Shares of beneficial interest outstanding, no par value, unlimited authorization (Net Assets $37,463,061) 2,979,716 Net asset value per share $12.57 Offering price per share $12.57/(1-5.75%) $13.34 CLASS B Shares of beneficial interest outstanding, no par value, unlimited authorization (Net Assets $15,247,781) 1,252,925 Net asset value and offering price per share $12.17 CLASS C Shares of beneficial interest outstanding, no par value, unlimited authorization (Net Assets $13,647,621) 1,120,634 Net asset value and offering price per share $12.18 STATEMENT OF OPERATIONS SIX MONTHS ENDED FEBRUARY 29, 2004 (UNAUDITED) INVESTMENT INCOME Dividends $ 518,409 Interest 4,156 Foreign taxes withheld (1,207) ---------- Total investment income 521,358 ---------- EXPENSES Investment advisory fee 248,831 Service fees, Class A 45,857 Distribution and service fees, Class B 77,095 Distribution and service fees, Class C 71,255 Financial agent fee 39,761 Transfer agent 82,512 Registration 29,311 Trustees 19,057 Professional 16,449 Custodian 13,771 Printing 11,639 Miscellaneous 6,894 ---------- Total expenses 662,432 Less expenses borne by investment adviser (136,451) ---------- Net expenses 525,981 ---------- NET INVESTMENT LOSS (4,623) ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain on securities 5,744,720 Net change in unrealized appreciation (depreciation) on investments 1,261,215 ---------- NET GAIN ON INVESTMENTS 7,005,935 ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $7,001,312 ========== See Notes to Financial Statements 14 Phoenix-Oakhurst Value Equity Fund STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended 2/29/04 Year Ended (Unaudited) 8/31/03 ------------- ------------- FROM OPERATIONS Net investment income (loss) $ (4,623) $ 496,711 Net realized gain (loss) 5,744,720 (6,218,723) Net change in unrealized appreciation (depreciation) 1,261,215 7,942,711 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 7,001,312 2,220,699 ------------- ------------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A (123,233) (283,597) Net investment income, Class B (30,551) (39,301) Net investment income, Class C (28,415) (42,475) ------------- ------------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (182,199) (365,373) ------------- ------------- FROM SHARE TRANSACTIONS CLASS A Proceeds from sales of shares (310,587 and 891,000 shares, respectively) 3,644,225 8,885,100 Net asset value of shares issued from reinvestment of distributions (10,049 and 24,886 shares, respectively) 118,886 267,903 Cost of shares repurchased (634,685 and 1,758,338 shares, respectively) (7,470,014) (17,230,551) ------------- ------------- Total (3,706,903) (8,077,548) ------------- ------------- CLASS B Proceeds from sales of shares (83,577 and 189,176 shares, respectively) 949,859 1,850,017 Net asset value of shares issued from reinvestment of distributions (2,377 and 2,789 shares, respectively) 27,241 29,746 Cost of shares repurchased (321,793 and 1,494,049 shares, respectively) (3,630,857) (14,264,891) ------------- ------------- Total (2,653,757) (12,385,128) ------------- ------------- CLASS C Proceeds from sales of shares (43,915 and 170,326 shares, respectively) 497,978 1,652,857 Net asset value of shares issued from reinvestment of distributions (2,239 and 3,218 shares, respectively) 25,685 34,338 Cost of shares repurchased (326,378 and 629,913 shares, respectively) (3,704,513) (6,096,181) ------------- ------------- Total (3,180,850) (4,408,986) ------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (9,541,510) (24,871,662) ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS (2,722,397) (23,016,336) NET ASSETS Beginning of period 69,080,860 92,097,196 ------------- ------------- END OF PERIOD [INCLUDING ACCUMULATED NET INVESTMENT LOSS AND UNDISTRIBUTED NET INVESTMENT INCOME OF ($5,066) AND $181,756, RESPECTIVELY] $ 66,358,463 $ 69,080,860 ============= =============
See Notes to Financial Statements 15 Phoenix-Oakhurst Value Equity Fund FINANCIAL HIGHLIGHTS (SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS A ---------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED AUGUST 31 2/29/04 --------------------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000 1999 Net asset value, beginning of period $11.33 $10.64 $12.76 $15.03 $12.11 $ 8.94 INCOME FROM INVESTMENT OPERATIONS Net investment income (loss)(1) 0.02 0.11 0.08 0.08 0.03 0.02 Net realized and unrealized gain (loss) 1.26 0.66 (1.97) (0.93) 2.89 3.20 ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 1.28 0.77 (1.89) (0.85) 2.92 3.22 ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS Dividends from net investment income (0.04) (0.08) (0.08) -- -- (0.05) Distributions from net realized gains -- -- (0.15) (1.42) -- -- ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.04) (0.08) (0.23) (1.42) -- (0.05) ------ ------ ------ ------ ------ ------ Change in net asset value 1.24 0.69 (2.12) (2.27) 2.92 3.17 ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $12.57 $11.33 $10.64 $12.76 $15.03 $12.11 ====== ====== ====== ====== ====== ====== Total return(2) 11.32%(6) 7.31% (14.97)% (6.71)% 24.11% 35.89% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $37,463 $37,310 $43,993 $58,260 $37,977 $26,974 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(3) 1.25%(7) 1.25%(5) 1.25 %(5) 1.25 %(5) 1.25%(5) 1.25% Net investment income 0.32%(7) 1.06% 0.64 % 0.53 % 0.20% 0.14% Portfolio turnover 151%(6) 349% 166 % 249 % 193% 192% CLASS B ---------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED AUGUST 31 2/29/04 --------------------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000 1999 Net asset value, beginning of period $10.99 $10.35 $12.42 $14.77 $12.00 $ 8.89 INCOME FROM INVESTMENT OPERATIONS Net investment income (loss)(1) (0.02) 0.04 (0.01) (0.03) (0.08) (0.07) Net realized and unrealized gain (loss) 1.22 0.63 (1.91) (0.90) 2.85 3.19 ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 1.20 0.67 (1.92) (0.93) 2.77 3.12 ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS Dividends from net investment income (0.02) (0.03) -- -- -- (0.01) Distributions from net realized gains -- -- (0.15) (1.42) -- -- ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.02) (0.03) (0.15) (1.42) -- (0.01) ------ ------ ------ ------ ------ ------ Change in net asset value 1.18 0.64 (2.07) (2.35) 2.77 3.11 ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $12.17 $10.99 $10.35 $12.42 $14.77 $12.00 ====== ====== ====== ====== ====== ====== Total return(2) 10.96 %(6) 6.44% (15.57)% (7.42)% 23.08 % 35.05 % RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $15,248 $16,363 $28,873 $36,669 $26,471 $24,709 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(4) 2.00 %(7) 2.00%(5) 2.00 %(5) 2.00 %(5) 2.00 %(5) 2.00 % Net investment income (loss) (0.43)%(7) 0.37% (0.11)% (0.22)% (0.57)% (0.62)% Portfolio turnover 151%(6) 349% 166 % 249 % 193 % 192 % (1) Computed using average shares outstanding. (2) Maximum sales charges are not reflected in the total return calculation. (3) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 1.66%, 1.63%, 1.49%, 1.38%, 1.47% and 1.57% for the periods ended February 29, 2004, August 31, 2003, 2002, 2001, 2000 and 1999, respectively. (4) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 2.41%, 2.38%, 2.24%, 2.13%, 2.22% and 2.32% for the periods ended February 29, 2004, August 31, 2003, 2002, 2001, 2000 and 1999, respectively. (5) The ratio of operating expenses to average net assets excludes the effect of expense offsets for custodian fees; if expense offsets were included, the ratio would not significantly differ. (6) Not annualized. (7) Annualized.
See Notes to Financial Statements 16 Phoenix-Oakhurst Value Equity Fund FINANCIAL HIGHLIGHTS (SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS C ---------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED AUGUST 31 2/29/04 --------------------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000 1999 Net asset value, beginning of period $11.00 $10.35 $12.43 $14.78 $12.00 $ 8.89 INCOME FROM INVESTMENT OPERATIONS Net investment income (loss)(1) (0.02) 0.03 (0.01) (0.03) (0.07) (0.07) Net realized and unrealized gain (loss) 1.22 0.65 (1.92) (0.90) 2.85 3.19 ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 1.20 0.68 (1.93) (0.93) 2.78 3.12 ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS Dividends from net investment income (0.02) (0.03) -- -- -- (0.01) Distributions from net realized gains -- -- (0.15) (1.42) -- -- ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS (0.02) (0.03) (0.15) (1.42) -- (0.01) ------ ------ ------ ------ ------ ------ Change in net asset value 1.18 0.65 (2.08) (2.35) 2.78 3.11 ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $12.18 $11.00 $10.35 $12.43 $14.78 $12.00 ====== ====== ====== ====== ====== ====== Total return(2) 10.95 %(5) 6.47% (15.56)% (7.41)% 23.17 % 34.91 % RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $13,648 $15,408 $19,231 $23,409 $12,590 $ 3,108 RATIO TO AVERAGE NET ASSETS OF: Operating expenses(3) 2.00 %(6) 2.00%(4) 2.00 %(4) 2.00 %(4) 2.00 %(4) 2.00 % Net investment income (loss) (0.43)%(6) 0.31% (0.11)% (0.22)% (0.52)% (0.60)% Portfolio turnover 151 %(5) 349% 166 % 249 % 193 % 192 % (1) Computed using average shares outstanding. (2) Maximum sales charges are not reflected in the total return calculation. (3) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been 2.41%, 2.38%, 2.24%, 2.13%, 2.22% and 2.32% for the periods ended February 29, 2004, August 31, 2003, 2002, 2001, 2000 and 1999, respectively. (4) The ratio of operating expenses to average net assets excludes the effect of expense offsets for custodian fees; if expense offsets were included, the ratio would not significantly differ. (5) Not annualized. (6) Annualized.
See Notes to Financial Statements 17 PHOENIX INVESTMENT TRUST 97 NOTES TO FINANCIAL STATEMENTS FEBRUARY 29, 2004 (UNAUDITED) 1. ORGANIZATION Phoenix Investment Trust 97 (the "Trust") is organized as a Delaware business trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. Currently, two funds are offered for sale (each a "Fund"), Phoenix Small Cap Value Fund is diversified and seeks long-term capital appreciation. Phoenix-Oakhurst Value Equity Fund is diversified and its primary investment objective is to seek long-term capital appreciation and its secondary objective is to seek current income. Each Fund offers Class A, Class B and Class C shares. Class A shares are sold with a front-end sales charge of up to 5.75%. Class B shares are sold with a contingent deferred sales charge which declines from 5% to zero depending on the period of time the shares are held. Class C shares are sold with a 1% contingent deferred sales charge if redeemed within one year of purchase. 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 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, liabilities, disclosure of contingent assets and liabilities, revenues and expenses. 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. Short-term investments having a remaining maturity of 60 days or less are valued at amortized cost which approximates market. As required, some investments are valued at fair value as determined in good faith by or under the direction of the Trustees. B. SECURITY TRANSACTIONS AND RELATED INCOME: Security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date, or in the case of certain foreign securities, as soon as the Fund is notified. Interest income is recorded on the accrual basis. The Trust amortizes premiums and accretes discounts using the effective interest method. Realized gains and losses are determined on the identified cost basis. C. INCOME TAXES: Each Fund is treated as a separate taxable entity. It is the policy of each Fund in the Trust to comply with the requirements of the Internal Revenue Code (the "Code"), applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. In addition, each Fund intends to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Code. Therefore, no provision for federal income taxes or excise taxes has been made. The Funds may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Funds 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 they invest. D. DISTRIBUTIONS TO SHAREHOLDERS: Distributions are recorded by each Fund on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from 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 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. 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 Funds do not separate that portion of the results of operations arising from changes in exchange rates and that portion arising from changes in the market prices of securities. 18 PHOENIX INVESTMENT TRUST 97 NOTES TO FINANCIAL STATEMENTS FEBRUARY 29, 2004 (UNAUDITED)(CONTINUED) F. 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 fairly made. G. FOREIGN SECURITY COUNTRY DETERMINATION: A combination of the following criteria is used to assign the countries at risk listed in the schedules of investments: country of incorporation, actual building address, primary exchange on which security is traded and country in which the greatest percentage of company revenue is generated. 3. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS As compensation for its services to the Trust, the Adviser, Phoenix Investment Counsel, Inc., 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 separate Fund: 1st $1-2 $2 + Fund $1 Billion Billion Billion - ------ ---------- ------- ------- Small Cap Value Fund ............ 0.90% 0.85% 0.80% Value Equity Fund ............... 0.75% 0.70% 0.65% The Adviser has voluntarily agreed to assume total operating expenses of each Fund, excluding interest, taxes, brokerage fees, commissions and extraordinary expenses, until December 31, 2004, to the extent that such expenses exceed the following percentages of the average annual net asset values for each Fund: Class A Class B Class C Shares Shares Shares ------- ------- ------- Small Cap Value Fund ............ 1.40% 2.15% 2.15% Value Equity Fund ............... 1.25% 2.00% 2.00% Effective January 27, 2004, Phoenix/Zweig Advisers ("PZA") is the subadviser to the Small Cap Value Fund. For its services, PZA is paid a fee by the Adviser equal to 0.10% of the average daily net assets of this Fund up to $166 million and 0.40% in excess of $166 million. PZA is a wholly-owned subsidiary of PNX. As Distributor of the Trust's shares, Phoenix Equity Planning Corporation ("PEPCO"), an indirect wholly-owned subsidiary of PNX, has advised the Trust that it retained net selling commissions and deferred sales charges for the period ended February 29, 2004 as follows: Class A Class B Class C Net Selling Deferred Deferred Commissions Sales Charges Sales Charges ----------- ------------- ------------- Small Cap Value Fund ....... $4,742 $57,313 $1,357 Value Equity Fund .......... 1,957 50,800 586 In addition to these amounts, the following was paid to W.S. Griffith Securities, Inc., an indirect subsidiary of PNX, for Class A net selling commissions: Small Cap Value Fund ..... $3,271 Value Equity Fund ........ 1,870 In addition, each fund pays PEPCO distribution and/or service fees at an annual rate of 0.25% for Class A shares, 1.00% for Class B shares and 1.00% for Class C shares applied to the average daily net assets of each respective class. PEPCO has advised the Trust of the following for the period ended February 29, 2004: Distribution Distribution Distribution and/or and/or and/or Service Fees Service Fees Service Fees Paid Out to Paid to Retained by Unaffiliated W.S. Griffith Distributor Participants Securities, Inc. ------------ ------------ ---------------- Small Cap Value Fund .... $248,620 $325,928 $6,902 Value Equity Fund ....... 83,676 103,247 7,284 As Financial Agent of the Trust, PEPCO receives a financial agent fee equal to the sum of (1) the documented cost of fund accounting and related services provided by PFPC Inc. (subagent to PEPCO) plus (2) the documented cost to PEPCO to provide tax services and oversight of the subagent's performance. For the period ended February 29, 2004, the Trust paid PEPCO $114,337. The fee schedule of PFPC Inc. ranges from 0.065% to 0.03% of the average daily net asset values of all the Phoenix-affiliated funds serviced by PFPC Inc. Certain minimum fees may apply. PEPCO serves as the Trust's Transfer Agent with State Street Bank and Trust Company serving as sub-transfer agent. For the period ended February 29, 2004, transfer agent fees were $298,252 as reported in the Statement of Operations, of which PEPCO retained the following: Transfer Agent Fee Retained -------------- Small Cap Value Fund ...................................... $92,565 Value Equity Fund ......................................... 25,071 For the period ended February 29, 2004, the following Funds paid PXPSecurities Corp., an indirect, wholly-owned subsidiary of PNX, brokerage commissions in connection with portfolio transactions effected on behalf of it as follows: Commissions Paid to PXP Securities Corp. -------------------- Small Cap Value Fund ............................. $21,032 Value Equity Fund ................................ 27,794 19 PHOENIX INVESTMENT TRUST 97 NOTES TO FINANCIAL STATEMENTS FEBRUARY 29, 2004 (UNAUDITED)(CONTINUED) 4. PURCHASES AND SALES OF SECURITIES Purchases and sales of securities during the period ended February 29, 2004 (excluding U.S. Government and agency securities and short-term securities) were as follows: Purchases Sales ------------ ------------ Small Cap Value Fund .................... $205,724,696 $216,910,291 Value Equity Fund ....................... 98,479,712 109,311,408 Purchases and sales of long-term U.S. Government and agency securities during the period ended February 29, 2004 were as follows: Purchases Sales ------------ ------------ Small Cap Value Fund .................... $4,100,845 $4,100,000 Value Equity Fund ....................... -- -- 5. 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 to accurately predict risk. 6. FEDERAL INCOME TAX INFORMATION The Funds have capital loss carryovers which may be used to offset future capital gains, as follows: Expiration Year ----------------------------------------- 2010 2011 Total ----------- ----------- ----------- Small Cap Value Fund .......... $27,551,224 $ 5,536,476 $33,087,700 Value Equity Fund ............. 6,597,012 16,409,509 23,006,521 The Funds 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. 7. OTHER Effective October 31, 2003, the Small Cap Value Fund changed its name from Phoenix-Hollister Small Cap Value Fund to Phoenix Small Cap Value Fund, and the Value Equity Fund changed its names from Phoenix-Hollister Value Equity Fund to Phoenix-Oakhurst Value Equity Fund. Also on this date, portfolio management for the Small Cap Value Fund was assigned to Carlton Neel and David Dickerson, and portfolio management for the Value Equity Fund was assigned to Steven L. Colton and Dong Zhang. Prior to this date, both Funds were managed by Christian C. Bertelsen and John LaForge, II. 8. SUBSEQUENT EVENT On or about April 16, 2004, pursuant to an Agreement and Plan of Reorganization, the Phoenix Appreciation Fund, a series of Phoenix Trust, will transfer all or substantially all of its assets to the Phoenix Small Cap Value Fund in exchange for shares of the Phoenix Small Cap Value Fund and the assumption by the Phoenix Small Cap Value Fund of all liabilities of the Phoenix Appreciation Fund. Following the exchange, the Phoenix Appreciation Fund will distribute the shares of the Phoenix Small Cap Value Fund to its shareholders pro rata, in liquidation of the Phoenix Appreciation Fund. The shareholders of the Phoenix Appreciation Fund must approve the Plan of Reorganization before any transaction can take place. The reconvened meeting of the shareholders of the Phoenix Appreciation Fund will be held on April 15, 2004. 9. PROXY VOTING PROCEDURES The advisers and subadvisers to each of the Phoenix-affiliated Funds vote proxies relating to portfolio securities in accordance with procedures that have been approved by the Board of Trustees of the Trust. You may obtain a description of these procedures, free of charge, by calling toll-free 800-243-1574. This information is also available through the Securities and Exchange Commission's website at http://www.sec.gov. 20 RESULTS OF SHAREHOLDER MEETINGS (UNAUDITED) A special meeting of Shareholders of Phoenix Small Cap Value Fund was held on January 27, 2004, for the following purpose: 1. To consider and act upon a proposal to approve a Subadvisory Agreement between Phoenix Investment Counsel, Inc. and Phoenix/Zweig Advisers LLC. On the record date of December 16, 2003, there were 12,462,109 shares outstanding, representing 174,442,812 votes. Of the shares outstanding, 73.4% were voted. NUMBER OF VOTES
For Against Abstain ---------- -------- -------- 1. To consider and act upon a proposal to approve a Subadvisory Agreement between Phoenix Investment Counsel, Inc. and Phoenix/Zweig Advisers LLC. 122,252,065 1,727,747 4,036,525
21 FUND MANAGEMENT Information pertaining to the Trustees and officers of the Trust is set forth below. The statement of additional information (SAI) includes additional information about the Trustees and is available without charge, upon request, by calling (800) 243-4361. The address of each individual, unless otherwise noted, is 56 Prospect Street, Hartford, CT 06115-0480. There is no stated term of office for Trustees of the Trust.
INDEPENDENT TRUSTEES - ------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF PORTFOLIOS IN FUND COMPLEX PRINCIPAL OCCUPATION(S) NAME, ADDRESS LENGTH OF OVERSEEN BY DURING PAST 5 YEARS AND AND DATE OF BIRTH TIME SERVED TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE - ------------------------------------------------------------------------------------------------------------------------------------ E. Virgil Conway Served since 36 Chairman, Rittenhouse Advisors, LLC (consulting firm) since Rittenhouse Advisors, LLC 1997. 2001. Trustee/Director, Realty Foundation of New York 101 Park Avenue (1972-present), Pace University (1978-present), New York New York, NY 10178 Housing Partnership Development Corp. (Chairman) DOB: 8/2/29 (1981-present), Greater New York Councils, Boy Scouts of America (1985-present), The Academy of Political Science (Vice Chairman) (1985-present), Urstadt Biddle Property Corp. (1989-present), The Harlem Youth Development Foundation (1998-2002). Chairman, Metropolitan Transportation Authority (1992-2001). Director, Trism, Inc. (1994-2001), Consolidated Edison Company of New York, Inc. (1970-2002), Atlantic Mutual Insurance Company (1974-2002), Centennial Insurance Company (1974-2002), Josiah Macy, Jr., Foundation (1975-present), Union Pacific Corp. (1978-2002), BlackRock Freddie Mac Mortgage Securities Fund (Advisory Director) (1990-2000), Accuhealth (1994-2002). - ------------------------------------------------------------------------------------------------------------------------------------ Harry Dalzell-Payne Served since 36 Currently retired. The Flat, Elmore Court 1997. Elmore, GL05, GL2 3NT U.K. DOB: 8/9/29 - ------------------------------------------------------------------------------------------------------------------------------------ Francis E. Jeffries Served since 29 Director, The Empire District Electric Company (1984-present). 8477 Bay Colony Dr. #902 1997. Director (1989-1997), Chairman of the Board (1993-1997), Naples, FL 34108 Phoenix Investment Partners, Ltd. DOB: 9/23/30 - ------------------------------------------------------------------------------------------------------------------------------------ Leroy Keith, Jr. Served since 26 Partner, Stonington Partners, Inc. (private equity fund) since Stonington Partners, Inc. 2001. 2001. Chairman (1995 to 2000) and Chief Executive Officer 736 Market Street, Ste. 1430 (1995-1998), Carson Products Company (cosmetics). Chattanooga, TN 37402 Director/Trustee, Evergreen Funds (six portfolios). DOB: 2/14/39 - ------------------------------------------------------------------------------------------------------------------------------------ Geraldine M. McNamara Served since 36 Managing Director, U.S. Trust Company of New York (private U.S. Trust Company of 1997. bank) (1982-present). New York 11 West 54th Street New York, NY 10019 DOB: 4/17/51 - ------------------------------------------------------------------------------------------------------------------------------------
22 FUND MANAGEMENT (CONTINUED)
INDEPENDENT TRUSTEES - ------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF PORTFOLIOS IN FUND COMPLEX PRINCIPAL OCCUPATION(S) NAME, ADDRESS LENGTH OF OVERSEEN BY DURING PAST 5 YEARS AND AND DATE OF BIRTH TIME SERVED TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE - ------------------------------------------------------------------------------------------------------------------------------------ Everett L. Morris Served since 36 Currently retired. Vice President, W.H. Reaves and Company 164 Laird Road 1997. (investment management) (1993-2003). Colts Neck, NJ 07722 DOB: 5/26/28 - ------------------------------------------------------------------------------------------------------------------------------------ Richard E. Segerson Served since 26 Managing Director, Northway Management Company (1998-present). Northway Management Company 1997. Managing Director, Mullin Associates (1993-1998). 164 Mason Street Greenwich, CT 06830 DOB: 2/16/46 - ------------------------------------------------------------------------------------------------------------------------------------ Lowell P. Weicker, Jr. Served since 26 Director, UST, Inc. (1995-present), HPSC Inc. (1995-present), 200 Duke Street 1997. Compuware (1996-present) and WWF, Inc. (2000-present). Alexandria, VA 22314 President, The Trust for America's Health (non-profit) DOB: 5/16/31 (2001-present). Director, Duty Free International, Inc. (1997-1998). - ------------------------------------------------------------------------------------------------------------------------------------
23 FUND MANAGEMENT (CONTINUED) INTERESTED TRUSTEES Each of the individuals listed below is an "interested person" of the Trust, as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended, and the rules and regulations thereunder.
- ------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF NAME, ADDRESS, PORTFOLIOS IN DATE OF BIRTH FUND COMPLEX PRINCIPAL OCCUPATION(S) AND POSITION(S) WITH LENGTH OF OVERSEEN BY DURING PAST 5 YEARS AND TRUST TIME SERVED TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE - ------------------------------------------------------------------------------------------------------------------------------------ *Marilyn E. LaMarche Served since 29 Limited Managing Director, Lazard Freres & Co. LLC Lazard Freres & Co. LLC 2002. (1983-present). Director, The Phoenix Companies, Inc. 30 Rockefeller Plaza, (2001-present) and Phoenix Life Insurance Company 59th Floor (1989-present). New York, NY 10020 DOB: 5/11/34 - ------------------------------------------------------------------------------------------------------------------------------------ **Philip R. McLoughlin Served since 76 Consultant, Phoenix Investment Partners Ltd. (2002-present). DOB: 10/23/46 1997. Director, PXRE Corporation (Delaware) (1985-present), World Trust Fund (1991-present). Chairman (1997-2002), Director Chairman and President (1995-2002), Vice Chairman (1995-1997) and Chief Executive Officer (1995-2002), Phoenix Investment Partners, Ltd. Director and Executive Vice President, The Phoenix Companies, Inc. (2000-2002). Director (1994-2002) and Executive Vice President, Investments (1987-2002), Phoenix Life Insurance Company. Director (1983-2002) and Chairman (1995-2002), Phoenix Investment Counsel, Inc. Director (1982-2002) and President (1990-2000), Phoenix Equity Planning Corporation. Chairman and President, Phoenix/Zweig Advisers LLC (1999-2002). Director (2001-2002) and President (April 2002-September 2002), Phoenix Investment Management Company. Director and Executive Vice President, Phoenix Life and Annuity Company (1996-2002). Director (1995-2000) and Executive Vice President (1994-2002), PHL Variable Insurance Company. Director, Phoenix National Trust Holding Company (2001-2002). Director (1985-2002) and Vice President (1986-2002), PM Holdings, Inc. Director, W.S. Griffith Associates, Inc. (1995-2002). Director (1992-2002) and President (1993-1994), W.S. Griffith Securities, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ ***James M. Oates Served since 31 Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Hudson Castle Group, Inc. 1997. Markets Inc.) (financial services) (1997-present). Managing c/o Northeast Investment Director, Wydown Group (consulting firm) (1994-present). Management, Inc. Director, Investors Financial Service Corporation 50 Congress Street (1995-present), Investors Bank & Trust Corporation Suite 1000 (1995-present), Plymouth Rubber Co. (1995-present), Stifel Boston, MA 02109 Financial (1996-present), Connecticut River Bancorp DOB: 5/31/46 (1998-present), Connecticut River Bank (1998-present), 1Mind, Inc. (1999-present) and 1Mind.com (2000-present). Director and Treasurer, Endowment for Health, Inc. (2000-present). Chairman, Emerson Investment Management, Inc. (2000-present). Member, Chief Executives Organization (1996-present). Vice Chairman, Massachusetts Housing Partnership (1998-1999). Director, Blue Cross and Blue Shield of New Hampshire (1994-1999), AIB Govett Funds (1991-2000) and Command Systems, Inc. (1998-2000). Director, Phoenix Investment Partners, Ltd. (1995-2001). - ------------------------------------------------------------------------------------------------------------------------------------ * Ms. LaMarche is an "interested person," as defined in the Investment Company Act of 1940, by reason of her position as Director of The Phoenix Companies, Inc. and Phoenix Life Insurance Company. ** Mr. McLoughlin is an "interested person," as defined in the Investment Company Act of 1940, by reason of his relationship with Phoenix Investment Partners, Ltd. and its affiliates. *** Mr. Oates is being treated as an Interested Trustee due to certain relationships existing among Mr. Oates, Hudson Castle Group, Inc. and The Phoenix Companies, Inc. and certain of its affiliates.
24 FUND MANAGEMENT (CONTINUED)
OFFICERS OF THE TRUST WHO ARE NOT TRUSTEES - ------------------------------------------------------------------------------------------------------------------------------------ POSITION(S) HELD WITH NAME, ADDRESS AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) DATE OF BIRTH TIME SERVED DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ William R. Moyer Executive Vice President Executive Vice President (1999-present) Senior Vice President DOB: 8/16/44 since 1997. (1995-1999), Chief Financial Officer (1995-present), Phoenix Investment Partners, Ltd. Director (1998-present), Executive Vice President, Chief Financial Officer and Treasurer (2000-present), Senior Vice President and Chief Financial Officer (1996-2000), Phoenix Equity Planning Corporation. Director (1998-present), Senior Vice President, Chief Financial Officer and Treasurer (1996-present), Phoenix Investment Counsel, Inc. Director (2000-present), Executive Vice President (2000-present), Treasurer (1996-present), Senior Vice President (2000-2002), Duff & Phelps Investment Management Co. Executive Vice President, Phoenix Fund Complex (1990-present). - ------------------------------------------------------------------------------------------------------------------------------------ John F. Sharry Executive Vice President Executive Vice President, Phoenix Investment Partners, Ltd. DOB: 3/28/52 since 1998. (1998-present), President, Phoenix Equity Planning Corporation (2000-present). Executive Vice President, Phoenix Fund Complex (1998-present). - ------------------------------------------------------------------------------------------------------------------------------------ Nancy G. Curtiss Treasurer since 1997. Vice President, Fund Accounting (1994-2000), Treasurer (1996-2000), DOB: 11/24/52 Assistant Treasurer (2001-2003), Vice President, Operations (2003-present), Phoenix Equity Planning Corporation. Treasurer, Phoenix Fund Complex (1994-present). - ------------------------------------------------------------------------------------------------------------------------------------ Richard J. Wirth Secretary since 2002; Vice President and Insurance and Investment Products Counsel One American Row Chief Legal Officer (2002-present), Counsel (1993-2002), Phoenix Life Insurance Company. Hartford, CT 06102 since 2003. Director (2003-present), President (2003-present), Assistant Secretary DOB: 11/14/58 (2002-present), Phoenix Variable Advisors, Inc. Secretary (2002-present), Chief Legal Officer (2003-present), Phoenix Fund Complex. - ------------------------------------------------------------------------------------------------------------------------------------
25 PHOENIX INVESTMENT TRUST 97 101 Munson Street Greenfield, Massachusetts 01301 TRUSTEES E. Virgil Conway Harry Dalzell-Payne Francis E. Jeffries Leroy Keith, Jr. Marilyn E. LaMarche Philip R. McLoughlin Geraldine M. McNamara Everett L. Morris James M. Oates Richard E. Segerson Lowell P. Weicker, Jr. OFFICERS Philip R. McLoughlin, Chairman and President William R. Moyer, Executive Vice President John F. Sharry, Executive Vice President Nancy G. Curtiss, Treasurer Richard J. Wirth, Chief Legal Officer and Secretary INVESTMENT ADVISER Phoenix Investment Counsel, Inc. 56 Prospect Street Hartford, Connecticut 06115-0480 PRINCIPAL UNDERWRITER Phoenix Equity Planning Corporation 56 Prospect Street Hartford, Connecticut 06115-0480 CUSTODIAN State Street Bank and Trust Company P.O. Box 5501 Boston, Massachusetts 02206-5501 TRANSFER AGENT Phoenix Equity Planning Corporation 56 Prospect Street Hartford, Connecticut 06115-0480 INDEPENDENT AUDITORS PricewaterhouseCoopers LLP 125 High Street Boston, Massachusetts 02110 HOW TO CONTACT US Mutual Fund Services 1-800-243-1574 Advisor Consulting Group 1-800-243-4361 Text Telephone 1-800-243-1926 Web site PHOENIXINVESTMENTS.COM - -------------------------------------------------------------------------------- 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 has been left blank intentionally.) (This page has been left blank intentionally.) PRESORTED STANDARD U.S. POSTAGE PAID Louisville, KY Permit No. 1051 PHOENIX EQUITY PLANNING CORPORATION P.O. Box 150480 Hartford, CT 06115-0480 [LOGO OMITTED] PHOENIX INVESTMENT PARTNERS, LTD. A MEMBER OF THE PHOENIX COMPANIES, INC. For more information about Phoenix mutual funds, please call your financial representative or contact us at 1-800-243-4361 or PHOENIXINVESTMENTS.COM. NOT INSURED BY FDIC/NCUA OR ANY FEDERAL GOVERNMENT AGENCY. NO BANK GUARANTEE. NOT A DEPOSIT. MAY LOSE VALUE. PXP 214 (4/04) ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 9. 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 directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this Item. ITEM 10. 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 last fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 11. 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(a) 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 Investment Trust 97 ------------------------------------------------------------------- By (Signature and Title)* /s/ Philip R. Mc Loughlin ------------------------------------------------------- Philip R. McLoughlin, Chairman (principal executive officer) Date APRIL 30, 2004 ------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Philip R. McLoughlin ------------------------------------------------------- Philip R. McLoughlin, Chairman (principal executive officer) Date APRIL 30, 2004 ------------------------------------------------------- By (Signature and Title)* /s/ Nancy G. Curtiss ------------------------------------------------------- Nancy G. Curtiss, Treasurer (principal financial officer) Date APRIL 30, 2004 ------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 g10177_cert.txt CERTIFICATION 302 CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT I, Philip R. McLoughlin, certify that: 1. I have reviewed this report on Form N-CSR of Phoenix Investment Trust 97; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) [Omitted] (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: APRIL 30, 2004 /s/ Philip R. McLoughlin ---------------------- ------------------------------------ Philip R. McLoughlin, Chairman (principal executive officer) CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT I, Nancy G. Curtiss, certify that: 1. I have reviewed this report on Form N-CSR of Phoenix Investment Trust 97; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) [Omitted] (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: APRIL 30, 2004 /s/ Nancy G. Curtiss ---------------------- ------------------------------------ Nancy G. Curtiss, Treasurer (principal financial officer) EX-99.906CERT 3 g10177_cert906.txt CERTIFICATION 906 CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT I, Philip R. McLoughlin, Chairman of Phoenix Investment Trust 97 (the "Registrant"), certify that: 1. The Form N-CSR of the Registrant (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: APRIL 30, 2004 /s/ Philip R. McLoughlin ---------------------- ------------------------------------ Philip R. McLoughlin, Chairman (principal executive officer) I, Nancy G. Curtiss, Treasurer of Phoenix Investment Trust 97 (the "Registrant"), certify that: 1. The Form N-CSR of the Registrant (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: APRIL 30, 2004 /s/ Nancy G. Curtiss ---------------------- ------------------------------------ Nancy G. Curtiss, Treasurer (principal financial officer) -----END PRIVACY-ENHANCED MESSAGE-----