-----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, QTVViU30gAPimMg7tjZpmMBq1jrQgYnLx9Am17kpSoYI/7cDGzCaJ2k8P5xdke0M 4G3yslM4JRFBN5fcwcSXRA== 0000935069-05-001118.txt : 20050506 0000935069-05-001118.hdr.sgml : 20050506 20050506140004 ACCESSION NUMBER: 0000935069-05-001118 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050228 FILED AS OF DATE: 20050506 DATE AS OF CHANGE: 20050506 EFFECTIVENESS DATE: 20050506 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PHOENIX INVESTMENT TRUST 97 CENTRAL INDEX KEY: 0001045018 IRS NUMBER: 000000000 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: 05806932 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 g15224invtrust_ncsrs05.txt PHOENIX INVESTMENT TRUST SAR 2-28-05 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) 101 Munson Street Greenfield, MA 01301 -------------------------------------------------------------- (Address of principal executive offices) (Zip code) John R. Flores, Esq. Vice President, Counsel Litigation/Employment Phoenix Life Insurance Company One American Row Hartford, CT 06102 -------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (800) 243-1574 -------------- Date of fiscal year end: August 31 --------- Date of reporting period: February 28, 2005 ----------------- 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. The Report to Shareholders is attached herewith. Semiannual Report [GRAPHIC OMITTED] FEBRUARY 28, 2005 PHOENIX SMALL CAP VALUE FUND PHOENIX VALUE EQUITY FUND Do you want to stop receiving fund documents by mail? Go to PhoenixInvestments.com, log in and sign up for E-Delivery [GRAPHIC OMITTED] PHOENIX INVESTMENT PARTNERS, LTD. COMMITTED TO INVESTOR SUCCESS(R) ---------------------------------------------------------------------- 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. ---------------------------------------------------------------------- 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, each Fund's record and other pertinent information. MESSAGE FROM THE CHAIRMAN DEAR SHAREHOLDER: I encourage you to review this semiannual report for the Phoenix Small Cap Value Fund and Phoenix Value Equity Fund for the six months ended February 28, 2005. As of this time, the U.S. economy appears to be on a strong course for 2005, coming off a year where gross domestic product (GDP), the most comprehensive measure of U.S. economic activity, grew at a healthy 4.4% rate. Adding to the positives, employment growth accelerated in the fourth quarter, and the markets finished 2004 strong, particularly the U.S. equity market which benefited from the post-election rally. Looking ahead, the Federal Reserve Board's ongoing commitment to raising interest rates, combined with record oil prices and deficits, are likely to slow the pace of economic growth in 2005, posing challenges as well as opportunities for investors in the equity and bond markets. No matter what the market brings, short-term performance changes should not distract you from your long-term financial plan. Now may be an opportune time for you to review your portfolio with your financial advisor to make sure that your asset allocation remains on target for you. Keep in mind that finding the best balance of performance and protection requires discipline and diversification.1 Your Phoenix Fund allocation may help in this effort. As an alternative to paper mail, if you would like to view your fund communications electronically, including account statements, prospectuses, annual and semiannual reports, sign up for our e-delivery service. To register, go online to PhoenixInvestments.com, select the Individual Investors option, and follow the e-delivery instructions, or call Mutual Fund Services at 1-800-243-1574 and a customer service representative will be happy to assist you. Sincerely, /s/ Philip R. McLoughlin Philip R. McLoughlin Chairman, Phoenix Funds MARCH 2005 1 DIVERSIFICATION DOES NOT GUARANTEE AGAINST A LOSS, AND THERE IS NO GUARANTEE THAT A DIVERSIFIED PORTFOLIO WILL OUTPERFORM A NON-DIVERSIFIED PORTFOLIO. The preceding information is the opinion of the Chairman of the Phoenix Funds Board of Trustees. There is no guarantee that market forecasts discussed will be realized. 1 TABLE OF CONTENTS Glossary ................................................................. 3 Phoenix Small Cap Value Fund ............................................. 4 Phoenix Value Equity Fund ................................................ 15 Notes to Financial Statements ............................................ 23 GLOSSARY FEDERAL RESERVE (THE "FED") The central bank of the U.S., responsible for controlling the money supply, interest rates and credit with the goal of keeping the U.S. economy and currency stable. Governed by a seven-member board, the system includes 12 regional Federal Reserve Banks, 25 branches and all national and state banks that are part of the system. GROSS DOMESTIC PRODUCT (GDP) An important measure of U.S. economic performance, GDP is the total market value of all final goods and services produced in the U.S. during any quarter or year. 3 PHOENIX SMALL CAP VALUE FUND ABOUT YOUR FUND'S EXPENSES We believe it is important for you to understand the impact of costs on your investment. All mutual funds have operating expenses. As a shareholder of the Small Cap Value Fund, you incur two types of costs: (1) transaction costs, including sales charges on purchases of Class A shares and contingent deferred sales charges on Class B and Class C shares; and (2) ongoing costs, including investment advisory fees; distribution and service fees; and other expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period. ACTUAL EXPENSES The first line of the accompanying tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line of the accompanying tables provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not your Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the accompanying tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges or contingent deferred sales charges. Therefore, the second line of the accompanying tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions. Beginning Ending Expenses Paid Small Cap Value Fund Account Value Account Value During Class A August 31, 2004 February 28, 2005 Period* - -------------------- --------------- ----------------- ------------- Actual $1,000.00 $1,226.79 $7.73 Hypothetical (5% return before expenses) 1,000.00 1,017.76 7.03 *EXPENSES ARE EQUAL TO THE FUND'S CLASS A ANNUALIZED EXPENSE RATIO OF 1.40%, WHICH IS NET OF WAIVED FEES AND REIMBURSED EXPENSES, IF APPLICABLE, MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY THE NUMBER OF DAYS IN THE MOST RECENT FISCAL HALF-YEAR, THEN DIVIDED BY 365 TO REFLECT THE ONE-HALF YEAR PERIOD. Beginning Ending Expenses Paid Small Cap Value Fund Account Value Account Value During Class B August 31, 2004 February 28, 2005 Period* - -------------------- --------------- ----------------- ------------- Actual $1,000.00 $1,222.14 $11.85 Hypothetical (5% return before expenses) 1,000.00 1,014.00 10.79 *EXPENSES ARE EQUAL TO THE FUND'S CLASS B ANNUALIZED EXPENSE RATIO OF 2.15%, WHICH IS NET OF WAIVED FEES AND REIMBURSED EXPENSES, IF APPLICABLE, MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY THE NUMBER OF DAYS IN THE MOST RECENT FISCAL HALF-YEAR, THEN DIVIDED BY 365 TO REFLECT THE ONE-HALF YEAR PERIOD. Beginning Ending Expenses Paid Small Cap Value Fund Account Value Account Value During Class C August 31, 2004 February 28, 2005 Period* - -------------------- --------------- ----------------- ------------- Actual $1,000.00 $1,222.14 $11.84 Hypothetical (5% return before expenses) 1,000.00 1,014.00 10.79 *EXPENSES ARE EQUAL TO THE FUND'S CLASS C ANNUALIZED EXPENSE RATIO OF 2.15%, WHICH IS NET OF WAIVED FEES AND REIMBURSED EXPENSES, IF APPLICABLE, MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY THE NUMBER OF DAYS IN THE MOST RECENT FISCAL HALF-YEAR, THEN DIVIDED BY 365 TO REFLECT THE ONE-HALF YEAR PERIOD. YOU CAN FIND MORE INFORMATION ABOUT THE FUNDS EXPENSES IN THE FINANCIAL STATEMENTS SECTION THAT FOLLOWS. FOR ADDITIONAL INFORMATION ON OPERATING EXPENSES AND OTHER SHAREHOLDER COSTS PLEASE REFER TO THE PROSPECTUS. 4 Phoenix Small Cap Value Fund - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS (UNAUDITED) 2/28/05 - -------------------------------------------------------------------------------- As a percentage of total investments [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA USED IN PRINTED GRAPHIC AS FOLLOWS: Financials 23% Consumer Discretionary 16 Industrials 15 Information Technology 12 Energy 9 Materials 8 Health Care 6 Other 11 SCHEDULE OF INVESTMENTS FEBRUARY 28, 2005 (UNAUDITED) SHARES VALUE ------- ------------ DOMESTIC COMMON STOCKS--96.3% AEROSPACE & DEFENSE--1.6% Aviall, Inc.(b) ................................. 61,800 $ 1,730,400 Cubic Corp. ..................................... 10,300 193,022 DRS Technologies, Inc.(b) ....................... 50,800 2,098,548 Moog, Inc. Class A(b) ........................... 2,800 124,880 ------------ 4,146,850 ------------ AIRLINES--0.6% Mesa Air Group, Inc.(b) ......................... 134,700 1,004,862 Republic Airways Holdings, Inc.(b) .............. 48,500 603,340 ------------ 1,608,202 ------------ APPAREL RETAIL--2.4% Charming Shoppes, Inc.(b) ....................... 140,000 1,079,400 Men's Wearhouse, Inc. (The)(b) .................. 57,700 2,029,309 Pacific Sunwear of California, Inc.(b) .......... 79,500 2,047,920 Stage Stores, Inc.(b) ........................... 28,800 1,110,528 ------------ 6,267,157 ------------ APPAREL, ACCESSORIES & LUXURY GOODS--0.5% Russell Corp. ................................... 23,100 417,879 UniFirst Corp. .................................. 23,300 945,514 ------------ 1,363,393 ------------ APPLICATION SOFTWARE--0.9% MRO Software, Inc.(b) ........................... 49,100 663,341 Quest Software, Inc.(b) ......................... 70,000 949,900 Serena Software, Inc.(b) ........................ 16,800 388,080 Verity, Inc.(b) ................................. 36,000 426,600 ------------ 2,427,921 ------------ SHARES VALUE ------- ------------ ASSET MANAGEMENT & CUSTODY BANKS--0.7% Calamos Asset Management, Inc. .................. 50,000 $ 1,418,000 National Financial Partners Corp. ............... 12,000 474,000 ------------ 1,892,000 ------------ AUTO PARTS & EQUIPMENT--0.5% Dura Automotive Systems, Inc. Class A(b) ........ 15,900 115,275 Sauer-Danfoss, Inc. ............................. 25,600 547,840 Shiloh Industries, Inc.(b) ...................... 31,000 510,570 Stoneridge, Inc.(b) ............................. 4,200 50,694 ------------ 1,224,379 ------------ AUTOMOBILE MANUFACTURERS--0.4% Monaco Coach Corp. .............................. 60,300 1,079,973 BIOTECHNOLOGY--0.2% Albany Molecular Research, Inc.(b) .............. 61,500 602,700 BROADCASTING & CABLE TV--1.1% Emmis Communications Corp. Class A(b) ........... 19,600 366,520 Entercom Communications Corp.(b) ................ 31,900 1,097,998 Hearst-Argyle Television, Inc. .................. 50,700 1,246,713 Insight Communications Co., Inc.(b) ............. 33,700 320,150 ------------ 3,031,381 ------------ BUILDING PRODUCTS--1.8% Griffon Corp.(b) ................................ 87,900 2,021,700 NCI Building Systems, Inc.(b) ................... 43,100 1,611,078 USG Corp.(b) .................................... 33,000 1,042,470 ------------ 4,675,248 ------------ See Notes to Financial Statements 5 Phoenix Small Cap Value Fund SHARES VALUE ------- ------------ CASINOS & GAMING--0.4% Multimedia Games, Inc.(b) ....................... 104,600 $ 1,044,954 CATALOG RETAIL--0.4% Insight Enterprises, Inc.(b) .................... 53,400 950,520 COMMERCIAL PRINTING--0.1% Consolidated Graphics, Inc.(b) .................. 3,800 197,790 COMMODITY CHEMICALS--0.5% Westlake Chemical Corp. ......................... 37,700 1,307,436 COMMUNICATIONS EQUIPMENT--2.7% Bel Fuse, Inc. Class B .......................... 23,800 737,324 CommScope, Inc.(b) .............................. 50,400 763,056 Comtech Telecommunications Corp.(b) ............. 46,500 1,672,140 DIGI International, Inc.(b) ..................... 6,400 96,640 Harris Corp. .................................... 57,600 3,841,920 SeaChange International, Inc.(b) ................ 6,600 91,410 ------------ 7,202,490 ------------ COMPUTER HARDWARE--0.0% Superior Essex, Inc.(b) ......................... 3,600 63,000 COMPUTER STORAGE & PERIPHERALS--1.0% Komag, Inc.(b) .................................. 68,300 1,376,245 McDATA Corp. Class A(b) ......................... 123,200 484,176 Overland Storage, Inc.(b) ....................... 55,200 816,960 ------------ 2,677,381 ------------ CONSTRUCTION & ENGINEERING--1.0% Granite Construction, Inc. ...................... 45,000 1,197,450 Michael Baker Corp.(b) .......................... 3,900 88,335 Perini Corp.(b) ................................. 56,300 898,548 URS Corp.(b) .................................... 19,100 550,844 ------------ 2,735,177 ------------ CONSTRUCTION MATERIALS--0.3% Texas Industries, Inc. .......................... 11,700 780,390 CONSTRUCTION, FARM MACHINERY & HEAVY TRUCKS--1.9% AGCO Corp.(b) ................................... 40,100 780,747 Alamo Group, Inc. ............................... 9,300 229,710 Terex Corp.(b) .................................. 90,800 4,104,160 ------------ 5,114,617 ------------ CONSUMER FINANCE--1.1% CompuCredit Corp.(b) ............................ 63,400 1,896,928 EZCORP, Inc. Class A(b) ......................... 52,500 1,012,725 ------------ 2,909,653 ------------ SHARES VALUE ------- ------------ DATA PROCESSING & OUTSOURCED SERVICES--0.6% eFunds Corp.(b) ................................. 76,200 $ 1,694,688 ------------ DEPARTMENT STORES--1.7% Bon-Ton Stores, Inc. (The) ...................... 34,800 598,908 Neiman Marcus Group, Inc. (The) Class A ......... 53,000 3,826,600 ------------ 4,425,508 ------------ DISTRIBUTORS--0.0% Handleman Co. ................................... 3,100 63,891 DIVERSIFIED COMMERCIAL SERVICES--1.6% Coinstar, Inc.(b) ............................... 82,300 1,926,643 G&K Services, Inc. Class A ...................... 3,900 167,349 NCO Group, Inc.(b) .............................. 49,300 991,423 SOURCECORP, Inc.(b) ............................. 3,800 79,344 TeleTech Holdings, Inc.(b) ...................... 99,700 1,141,565 ------------ 4,306,324 ------------ ELECTRIC UTILITIES--1.0% Otter Tail Corp. ................................ 16,700 422,176 PNM Resources, Inc. ............................. 20,000 524,800 Unisource Energy Corp. .......................... 56,100 1,695,903 ------------ 2,642,879 ------------ ELECTRICAL COMPONENTS & EQUIPMENT--1.2% Encore Wire Corp.(b) ............................ 18,400 220,616 Genlyte Group, Inc. (The)(b) .................... 20,000 1,796,400 Penn Engineering & Manufacturing Corp. .......... 28,700 523,775 Thomas & Betts Corp.(b) ......................... 17,300 537,684 ------------ 3,078,475 ------------ ELECTRONIC EQUIPMENT MANUFACTURERS--1.1% Coherent, Inc.(b) ............................... 9,700 294,395 Rofin-Sinar Technologies, Inc.(b) ............... 68,800 2,521,520 ------------ 2,815,915 ------------ ELECTRONIC MANUFACTURING SERVICES--0.4% TTM Technologies, Inc.(b) ....................... 109,000 1,173,930 EMPLOYMENT SERVICES--0.2% Volt Information Sciences, Inc.(b) .............. 20,700 602,784 ENVIRONMENTAL SERVICES--0.5% Waste Connections, Inc.(b) ...................... 40,000 1,363,200 FERTILIZERS & AGRICULTURAL CHEMICALS--0.6% Terra Industries, Inc.(b) ....................... 179,400 1,467,492 FOOD DISTRIBUTORS--0.6% Nash Finch Co. .................................. 41,800 1,655,698 See Notes to Financial Statements 6 Phoenix Small Cap Value Fund SHARES VALUE ------- ------------ FOOD RETAIL--0.8% Ruddick Corp. ................................... 47,700 $ 1,125,720 Smart & Final, Inc.(b) .......................... 78,800 1,024,400 ------------ 2,150,120 ------------ GAS UTILITIES--0.7% Laclede Group, Inc. (The) ....................... 6,900 216,522 Southwest Gas Corp. ............................. 8,800 220,704 UGI Corp. ....................................... 32,300 1,445,425 ------------ 1,882,651 ------------ GENERAL MERCHANDISE STORES--0.4% ShopKo Stores, Inc.(b) .......................... 57,700 1,010,327 HEALTH CARE EQUIPMENT--1.2% CONMED Corp.(b) ................................. 38,700 1,145,907 Invacare Corp. .................................. 26,800 1,262,816 STERIS Corp.(b) ................................. 33,000 816,750 ------------ 3,225,473 ------------ HEALTH CARE FACILITIES--1.6% Genesis Healthcare(b) ........................... 40,200 1,655,436 LifePoint Hospitals, Inc.(b) .................... 61,800 2,475,090 ------------ 4,130,526 ------------ HEALTH CARE SERVICES--1.3% Accredo Health, Inc.(b) ......................... 29,200 1,244,504 OCA, Inc.(b) .................................... 55,900 277,264 Option Care, Inc. ............................... 62,600 1,210,058 Res-Care, Inc.(b) ............................... 59,100 809,079 ------------ 3,540,905 ------------ HEALTH CARE SUPPLIES--0.9% Gen-Probe, Inc.(b) .............................. 23,100 1,176,021 West Pharmaceutical Services, Inc. .............. 42,800 1,099,960 ------------ 2,275,981 ------------ HOME FURNISHINGS--0.3% Hooker Furniture Corp. .......................... 2,600 67,548 La-Z-Boy, Inc. .................................. 50,600 756,470 ------------ 824,018 ------------ HOME IMPROVEMENT RETAIL--0.4% Building Materials Holding Corp. ................ 20,700 955,098 HOMEBUILDING--1.4% Beazer Homes USA, Inc. .......................... 20,800 3,575,936 Technical Olympic USA, Inc. ..................... 3,000 90,960 ------------ 3,666,896 ------------ SHARES VALUE ------- ------------ HOTELS, RESORTS & CRUISE LINES--0.6% Bluegreen Corp.(b) .............................. 65,000 $ 1,604,200 INDUSTRIAL CONGLOMERATES--0.4% Tredegar Corp. .................................. 63,100 1,091,630 INDUSTRIAL MACHINERY--1.3% Flowserve Corp.(b) .............................. 135,000 3,373,650 INTEGRATED TELECOMMUNICATION SERVICES--0.2% CT Communications, Inc. ......................... 24,900 277,635 General Communication, Inc. Class A(b) .......... 26,000 242,580 ------------ 520,215 ------------ INTERNET SOFTWARE & SERVICES--0.6% AsiaInfo Holdings, Inc.(b) ...................... 27,700 121,880 Digital Insight Corp.(b) ........................ 11,400 182,970 PEC Solutions, Inc.(b) .......................... 72,300 832,896 Stellent, Inc.(b) ............................... 6,700 60,233 SupportSoft, Inc.(b) ............................ 46,400 274,224 ------------ 1,472,203 ------------ INVESTMENT BANKING & BROKERAGE--0.1% Stifel Financial Corp.(b) ....................... 8,800 189,200 IT CONSULTING & OTHER SERVICES--0.7% CIBER, Inc.(b) .................................. 131,200 982,688 Perot Systems Corp. Class A(b) .................. 63,900 847,314 ------------ 1,830,002 ------------ LEISURE PRODUCTS--0.5% JAKKS Pacific, Inc.(b) .......................... 62,300 1,231,671 Steinway Musical Instruments(b) ................. 4,300 116,444 ------------ 1,348,115 ------------ LIFE & HEALTH INSURANCE--0.7% AmerUs Group Co. ................................ 17,000 818,210 UICI ............................................ 36,800 1,009,056 ------------ 1,827,266 ------------ MARINE PORTS & SERVICES--0.1% Interpool, Inc. ................................. 12,700 291,465 METAL & GLASS CONTAINERS--0.7% Greif, Inc. Class A ............................. 23,100 1,492,260 Myers Industries, Inc. .......................... 31,000 404,550 ------------ 1,896,810 ------------ MULTI-LINE INSURANCE--0.2% Horace Mann Educators Corp. ..................... 32,000 600,320 See Notes to Financial Statements 7 Phoenix Small Cap Value Fund SHARES VALUE ------- ------------ MULTI-UTILITIES & UNREGULATED POWER--2.5% Energen Corp. ................................... 58,500 $ 3,773,250 WPS Resources Corp. ............................. 55,900 2,913,508 ------------ 6,686,758 ------------ OIL & GAS EQUIPMENT & SERVICES--2.1% Gulf Island Fabrication, Inc. ................... 600 14,442 Lufkin Industries, Inc. ......................... 1,800 77,778 Maverick Tube Corp.(b) .......................... 50,000 1,778,000 Offshore Logistics, Inc.(b) ..................... 42,300 1,392,093 Oil States International, Inc.(b) ............... 67,200 1,413,888 RPC, Inc. ....................................... 38,700 1,010,070 ------------ 5,686,271 ------------ OIL & GAS EXPLORATION & PRODUCTION--2.8% Chesapeake Energy Corp. ......................... 171,000 3,708,990 Magnum Hunter Resources, Inc.(b) ................ 110,000 1,840,300 Newfield Exploration Co.(b) ..................... 26,700 1,982,475 ------------ 7,531,765 ------------ OIL & GAS REFINING, MARKETING & TRANSPORTATION--4.0% General Maritime Corp.(b) ....................... 46,400 2,389,136 OMI Corp. ....................................... 183,900 3,849,027 Overseas Shipholding Group, Inc. ................ 31,700 2,064,304 Tesoro Petroleum Corp.(b) ....................... 60,600 2,237,958 ------------ 10,540,425 ------------ PACKAGED FOODS & MEATS--1.7% Cal-Maine Foods, Inc. ........................... 17,100 166,212 Chiquita Brands International, Inc. ............. 35,200 803,264 Pilgrim's Pride Corp. ........................... 96,000 3,646,080 ------------ 4,615,556 ------------ PAPER PRODUCTS--0.3% Buckeye Technologies, Inc.(b) ................... 70,200 840,294 PHARMACEUTICALS--0.4% aaiPharma, Inc.(b) .............................. 55,600 127,880 Bradley Pharmaceuticals, Inc.(b) ................ 96,400 939,900 ------------ 1,067,780 ------------ PROPERTY & CASUALTY INSURANCE--5.8% Argonaut Group, Inc.(b) ......................... 9,500 223,155 Commerce Group, Inc. (The) ...................... 9,500 647,805 FPIC Insurance Group, Inc.(b) ................... 8,400 290,472 Infinity Property & Casualty Corp. .............. 17,800 571,914 LandAmerica Financial Group, Inc. ............... 70,300 3,848,222 Mercury General Corp. ........................... 68,700 3,768,882 Navigators Group, Inc. (The)(b) ................. 3,800 114,000 SHARES VALUE ------- ------------ PROPERTY & CASUALTY INSURANCE--CONTINUED Safety Insurance Group, Inc. .................... 5,200 $ 192,764 Selective Insurance Group, Inc. ................. 52,700 2,424,727 State Auto Financial Corp. ...................... 11,900 332,367 Stewart Information Services Corp. .............. 10,100 403,899 United Fire & Casualty Co. ...................... 27,800 883,206 Zenith National Insurance Corp. ................. 32,700 1,655,601 ------------ 15,357,014 ------------ PUBLISHING & PRINTING--0.9% Media General, Inc. Class A ..................... 16,100 1,030,239 Scholastic Corp.(b) ............................. 35,000 1,241,800 ------------ 2,272,039 ------------ REAL ESTATE MANAGEMENT & DEVELOPMENT--0.9% Jones Lang LaSalle, Inc.(b) ..................... 53,700 2,307,489 REGIONAL BANKS--1.3% Americanwest Bancorp.(b) ........................ 7,800 154,050 Banner Corp. .................................... 13,600 401,880 Capitol Bancorp Ltd. ............................ 5,900 180,304 First State Bancorporation ...................... 6,200 219,728 Republic Bancorp, Inc. .......................... 42,780 622,449 Southwest Bancorp, Inc. ......................... 9,800 190,610 Taylor Capital Group, Inc. ...................... 3,000 94,020 TCF Financial Corp. ............................. 56,500 1,562,225 Wesbanco, Inc. .................................. 4,300 115,627 ------------ 3,540,893 ------------ REINSURANCE--2.6% Arch Capital Group Ltd.(b) ...................... 46,100 1,912,228 Everest Re Group Ltd. ........................... 43,600 3,787,532 Odyssey Re Holdings Corp. ....................... 42,600 1,076,076 ------------ 6,775,836 ------------ REITS--4.9% American Home Mortgage Investment Corp. ......... 56,200 1,750,630 Brandywine Realty Trust ......................... 60,000 1,775,400 CarrAmerica Realty Corp. ........................ 69,300 2,165,625 Friedman, Billings, Ramsey Group, Inc. Class A .. 122,400 2,270,520 New Century Financial Corp. ..................... 58,500 2,967,120 Parkway Properties, Inc. ........................ 6,400 300,992 Saxon Capital, Inc. ............................. 85,000 1,526,600 Winston Hotels, Inc. ............................ 20,000 223,000 ------------ 12,979,887 ------------ RESTAURANTS--2.7% Dave & Buster's, Inc.(b) ........................ 43,300 853,876 Jack in the Box, Inc.(b) ........................ 103,100 3,701,290 See Notes to Financial Statements 8 Phoenix Small Cap Value Fund SHARES VALUE ------- ------------ RESTAURANTS--CONTINUED Landry's Restaurants, Inc. ...................... 72,100 $ 2,087,295 O' Charley's, Inc.(b) ........................... 29,200 616,704 ------------ 7,259,165 ------------ SEMICONDUCTOR EQUIPMENT--0.8% Entegris, Inc.(b) ............................... 43,400 419,244 Mykrolis Corp.(b) ............................... 48,000 648,960 Photronics, Inc.(b) ............................. 55,800 1,036,764 ------------ 2,104,968 ------------ SEMICONDUCTORS--0.7% DSP Group, Inc.(b) .............................. 15,700 395,248 Integrated Device Technology, Inc.(b) ........... 66,800 835,668 IXYS Corp.(b) ................................... 50,900 526,306 Pixelworks, Inc.(b) ............................. 16,900 160,888 ------------ 1,918,110 ------------ SPECIALIZED FINANCE--0.5% GATX Corp. ...................................... 45,400 1,361,092 SPECIALTY CHEMICALS--2.2% Albemarle Corp. ................................. 43,300 1,645,400 NewMarket Corp.(b) .............................. 28,300 537,983 OM Group, Inc.(b) ............................... 114,600 3,653,448 ------------ 5,836,831 ------------ SPECIALTY STORES--1.4% Hollywood Entertainment Corp.(b) ................ 26,300 359,521 Lithia Motors, Inc. Class A ..................... 48,200 1,266,214 Movie Gallery, Inc. ............................. 38,100 870,204 Sonic Automotive, Inc. .......................... 60,000 1,331,400 ------------ 3,827,339 ------------ STEEL--5.1% Commercial Metals Co. ........................... 59,400 2,067,120 Metal Management, Inc. .......................... 27,600 817,788 Metals USA, Inc.(b) ............................. 63,300 1,542,621 Reliance Steel & Aluminum Co. ................... 74,700 3,413,790 Schnitzer Steel Industries, Inc. Class A ........ 53,400 2,169,108 Steel Dynamics, Inc. ............................ 50,600 2,253,724 Steel Technologies, Inc. ........................ 43,200 1,331,856 ------------ 13,596,007 ------------ SYSTEMS SOFTWARE--1.4% Internet Security Systems, Inc.(b) .............. 115,600 2,321,248 Phoenix Technologies Ltd.(b) .................... 32,100 319,716 Sybase, Inc.(b) ................................. 52,000 979,680 ------------ 3,620,644 ------------ SHARES VALUE ------- ------------ TECHNOLOGY DISTRIBUTORS--0.7% Agilysys, Inc. .................................. 36,600 $ 690,276 Anixter International, Inc.(b) .................. 29,400 1,103,676 Brightpoint, Inc.(b) ............................ 3,700 66,674 SYNNEX Corp.(b) ................................. 5,000 112,900 ------------ 1,973,526 ------------ THRIFTS & MORTGAGE FINANCE--3.5% Anchor BanCorp Wisconsin, Inc. .................. 11,400 313,386 Capital Crossing Bank(b) ........................ 16,600 507,960 Commercial Federal Corp. ........................ 75,200 2,055,216 Doral Financial Corp. ........................... 87,600 3,474,216 Downey Financial Corp. .......................... 11,300 707,945 Flagstar Bancorp, Inc. .......................... 65,800 1,352,190 Flushing Financial Corp. ........................ 8,200 147,600 ITLA Capital Corp.(b) ........................... 5,200 259,376 Ocwen Financial Corp.(b) ........................ 23,800 190,638 Sterling Financial Corp.(b) ..................... 5,300 202,036 Tierone Corp. ................................... 8,800 218,328 ------------ 9,428,891 ------------ TOBACCO--0.3% DIMON, Inc. ..................................... 125,400 812,592 TRADING COMPANIES & DISTRIBUTORS--0.5% Applied Industrial Technologies, Inc. ........... 38,000 1,076,160 Huttig Building Products, Inc.(b) ............... 23,000 247,940 ------------ 1,324,100 ------------ TRUCKING--1.3% Arkansas Best Corp. ............................. 18,400 795,248 Celadon Group, Inc.(b) .......................... 4,700 102,178 SCS Transportation, Inc.(b) ..................... 9,400 208,210 Swift Transportation Co., Inc.(b) ............... 79,500 1,885,740 U.S. Xpress Enterprises, Inc. Class A(b) ........ 13,500 358,965 ------------ 3,350,341 ------------ WATER UTILITIES--0.1% American States Water Co. ....................... 10,300 280,160 WIRELESS TELECOMMUNICATION SERVICES--0.2% Boston Communications Group, Inc.(b) ............ 75,600 570,024 - ---------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $204,153,879) 255,766,264 - ---------------------------------------------------------------------------- See Notes to Financial Statements 9 Phoenix Small Cap Value Fund SHARES VALUE ------- ------------ FOREIGN COMMON STOCKS(c)--1.0% PROPERTY & CASUALTY INSURANCE--0.0% United America Indemnity Ltd. (United States)(b) 2,268 $ 41,391 THRIFTS & MORTGAGE FINANCE--1.0% R&G Financial Corp. Class B (United States) ..... 74,700 2,713,104 - ---------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $1,839,610) 2,754,495 - ---------------------------------------------------------------------------- WARRANTS--0.0% OTHER DIVERSIFIED FINANCIAL SERVICES--0.0% Imperial Credit Industries, Inc.(b)(d) .......... 2,429 0 - ---------------------------------------------------------------------------- TOTAL WARRANTS (IDENTIFIED COST $0) 0 - ---------------------------------------------------------------------------- PAR VALUE (000) ------- DOMESTIC CONVERTIBLE BONDS--0.0% AIRPORT SERVICES--0.0% TIMCO Aviation Services, Inc. Cv 8%, 1/2/07(b)(d) $ 2 0 - ---------------------------------------------------------------------------- TOTAL DOMESTIC CONVERTIBLE BONDS (IDENTIFIED COST $0) 0 - ---------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--97.3% (IDENTIFIED COST $205,993,489) 258,520,759 - ---------------------------------------------------------------------------- PAR VALUE (000) VALUE ------ ------------ SHORT-TERM INVESTMENTS--3.1% COMMERCIAL PAPER--3.1% UBS Finance Delaware LLC 2.59%, 3/1/05 .......... $3,500 $ 3,500,000 Alpine Securitization Corp. 2.53%, 3/3/05 ....... 2,015 2,014,717 BellSouth Corp. 2.55%, 3/8/05 ................... 2,615 2,613,703 - ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $8,128,420) 8,128,420 - ---------------------------------------------------------------------------- TOTAL INVESTMENTS--100.4% (IDENTIFIED COST $214,121,909) 266,649,179(a) Other assets and liabilities, net--(0.4)% (966,844) ------------ NET ASSETS--100.0% $265,682,335 ============ (a) Federal Income Tax Information: Net unrealized appreciation of investment securities is comprised of gross appreciation of $55,536,774 and gross depreciation of $3,928,871 for federal income tax purposes. At February 28, 2005, the aggregate cost of securities for federal income tax purposes was $215,041,276. (b) Non-income producing. (c) Foreign Common Stocks are determined based on the country in which the security is issued. The country of risk, noted parenthetically, is determined based on criteria described in Note 2G "Foreign security country determination" in the Notes to Financial Statements. (d) Illiquid. Security valued at fair value as determined in good faith by or under the direction of the Trustees. At February 28, 2005, these securities amounted to a value of $0 or 0% of net assets. See Notes to Financial Statements 10 Phoenix Small Cap Value Fund STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 2005 (UNAUDITED) ASSETS Investment securities at value (Identified cost $214,121,909) $266,649,179 Cash 3,221 Receivables Dividends 168,183 Fund shares sold 89,882 Prepaid expenses 30,718 ------------ Total assets 266,941,183 ------------ LIABILITIES Payables Fund shares repurchased 815,914 Investment advisory fee 144,132 Distribution and service fees 121,253 Transfer agent fee 97,930 Financial agent fee 14,172 Trustees' fee 3,901 Accrued expenses 61,546 ------------ Total liabilities 1,258,848 ------------ NET ASSETS $265,682,335 ============ NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $196,081,900 Accumulated net investment loss (450,870) Accumulated net realized gain 17,524,035 Net unrealized appreciation 52,527,270 ------------ NET ASSETS $265,682,335 ============ CLASS A Shares of beneficial interest outstanding, no par value, unlimited authorization (Net Assets $143,504,337) 7,756,800 Net asset value per share $18.50 Offering price per share $18.50/(1-5.75%) $19.63 CLASS B Shares of beneficial interest outstanding, no par value, unlimited authorization (Net Assets $47,144,708) 2,702,826 Net asset value and offering price per share $17.44 CLASS C Shares of beneficial interest outstanding, no par value, unlimited authorization (Net Assets $75,033,290) 4,302,220 Net asset value and offering price per share $17.44 STATEMENT OF OPERATIONS SIX MONTHS ENDED FEBRUARY 28, 2005 (UNAUDITED) INVESTMENT INCOME Dividends $ 1,776,156 Interest 37,499 Foreign taxes withheld (6,807) ----------- Total investment income 1,806,848 ----------- EXPENSES Investment advisory fee 1,159,246 Service fees, Class A 170,531 Distribution and service fees, Class B 232,955 Distribution and service fees, Class C 372,974 Financial agent fee 91,800 Transfer agent 288,698 Printing 44,828 Registration 23,858 Professional 23,473 Trustees 20,790 Custodian 18,327 Miscellaneous 22,021 ----------- Total expenses 2,469,501 Less expenses reimbursed by investment adviser (211,448) Custodian fees paid indirectly (335) ----------- Net expenses 2,257,718 ----------- NET INVESTMENT LOSS (450,870) ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain on securities 21,463,528 Net change in unrealized appreciation (depreciation) on investments 30,818,178 ----------- NET GAIN ON INVESTMENTS 52,281,706 ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $51,830,836 =========== See Notes to Financial Statements 11 Phoenix Small Cap Value Fund STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended February 28, 2005 Year Ended (Unaudited) August 31, 2004 ----------------- --------------- FROM OPERATIONS Net investment income (loss) $ (450,870) $ (1,576,853) Net realized gain (loss) 21,463,528 31,977,139 Net change in unrealized appreciation (depreciation) 30,818,178 (12,159,429) ------------ ------------ INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 51,830,836 18,240,857 ------------ ------------ FROM SHARE TRANSACTIONS CLASS A Proceeds from sales of shares (819,397 and 1,143,420 shares, respectively) 13,806,560 17,037,857 Net asset value of shares issued in conjunction with Plan of Reorganization (0 and 4,064,701 shares, respectively) (See Note 8) -- 62,404,841 Cost of shares repurchased (1,294,530 and 2,699,594 shares, respectively) (22,077,938) (40,395,840) ------------ ------------ Total (8,271,378) 39,046,858 ------------ ------------ CLASS B Proceeds from sales of shares (69,218 and 175,854 shares, respectively) 1,139,334 2,462,509 Net asset value of shares issued in conjunction with Plan of Reorganization (0 and 462,034 shares, respectively) (See Note 8) -- 6,731,032 Cost of shares repurchased (435,180 and 750,989 shares, respectively) (7,076,507) (10,596,886) ------------ ------------ Total (5,937,173) (1,403,345) ------------ ------------ CLASS C Proceeds from sales of shares (50,409 and 301,430 shares, respectively) 818,582 4,226,723 Net asset value of shares issued in conjunction with Plan of Reorganization (0 and 1,970,027 respectively) (See Note 8) -- 28,697,143 Cost of shares repurchased (743,846 and 1,307,554 shares, respectively) (12,021,112) (18,583,831) ------------ ------------ Total (11,202,530) 14,340,035 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (25,411,081) 51,983,548 ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS 26,419,755 70,224,405 NET ASSETS Beginning of period 239,262,580 169,038,175 ------------ ------------ END OF PERIOD [INCLUDING ACCUMULATED NET INVESTMENT LOSS AND UNDISTRIBUTED NET INVESTMENT INCOME OF $(450,870) AND $0, RESPECTIVELY] $265,682,335 $239,262,580 ============ ============
See Notes to Financial Statements 12 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 FEBRUARY 28, 2005 ---------------------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 Net asset value, beginning of period $15.08 $13.42 $11.30 $12.72 $17.90 $11.41 INCOME FROM INVESTMENT OPERATIONS Net investment income (loss)(1) --(3) (0.06) --(3) (0.01) (0.05) (0.08) Net realized and unrealized gain (loss) 3.42 1.72 2.12 (1.39) (2.34) 7.38 ------- -------- -------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS 3.42 1.66 2.12 (1.40) (2.39) 7.30 ------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS Distributions from net realized gains -- -- -- (0.02) (2.79) (0.81) ------- -------- -------- -------- -------- -------- TOTAL DISTRIBUTIONS -- -- -- (0.02) (2.79) (0.81) ------- -------- -------- -------- -------- -------- Change in net asset value 3.42 1.66 2.12 (1.42) (5.18) 6.49 ------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $18.50 $15.08 $13.42 $11.30 $12.72 $17.90 ====== ====== ====== ====== ====== ====== Total return(2) 22.68%(4) 12.37 % 18.76% (11.02)% (14.24)% 66.15 % RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $143,504 $124,165 $76,783 $83,005 $88,174 $79,254 RATIO TO AVERAGE NET ASSETS OF: Net operating expenses 1.40%(5) 1.40 % 1.40% 1.40 % 1.40 % 1.40 % Gross operating expenses 1.56%(5) 1.57 % 1.71% 1.64 % 1.58 % 1.67 % Net investment income (loss) 0.00%(5),(6) (0.38)% 0.04% (0.11)% (0.39)% (0.45)% Portfolio turnover 48%(4) 150 % 241% 123 % 229 % 191 % CLASS B --------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED AUGUST 31 FEBRUARY 28, 2005 ---------------------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 Net asset value, beginning of period $14.27 $12.79 $10.85 $12.31 $17.54 $11.27 INCOME FROM INVESTMENT OPERATIONS Net investment income (loss)(1) (0.06) (0.16) (0.08) (0.10) (0.16) (0.19) Net realized and unrealized gain (loss) 3.23 1.64 2.02 (1.34) (2.28) 7.27 ------- -------- -------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS 3.17 1.48 1.94 (1.44) (2.44) 7.08 ------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS Distributions from net realized gains -- -- -- (0.02) (2.79) (0.81) ------- -------- -------- -------- -------- -------- TOTAL DISTRIBUTIONS -- -- -- (0.02) (2.79) (0.81) ------- -------- -------- -------- -------- -------- Change in net asset value 3.17 1.48 1.94 (1.46) (5.23) 6.27 ------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $17.44 $14.27 $12.79 $10.85 $12.31 $17.54 ====== ====== ====== ====== ====== ====== Total return(2) 22.21 %(4) 11.57 % 17.88 % (11.72)% (14.89)% 64.97 % RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $47,144 $43,801 $40,696 $40,382 $40,270 $26,625 RATIO TO AVERAGE NET ASSETS OF: Net operating expenses 2.15 %(5) 2.15 % 2.15 % 2.15 % 2.15 % 2.15 % Gross operating expenses 2.31 %(5) 2.33 % 2.46 % 2.39 % 2.33 % 2.42 % Net investment income (loss) (0.75)%(5) (1.15)% (0.71)% (0.86)% (1.14)% (1.20)% Portfolio turnover 48 %(4) 150 % 241 % 123 % 229 % 191 % (1) Computed using average shares outstanding. (2) Sales charges are not reflected in total return calculation. (3) Amount is less than $0.01. (4) Not annualized. (5) Annualized. (6) Amount is less than 0.01%.
See Notes to Financial Statements 13 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 FEBRUARY 28, 2005 ---------------------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 Net asset value, beginning of period $14.27 $12.79 $10.85 $12.31 $17.54 $11.27 INCOME FROM INVESTMENT OPERATIONS Net investment income (loss)(1) (0.06) (0.16) (0.08) (0.10) (0.16) (0.19) Net realized and unrealized gain (loss) 3.23 1.64 2.02 (1.34) (2.28) 7.27 ------- -------- -------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS 3.17 1.48 1.94 (1.44) (2.44) 7.08 ------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS Distributions from net realized gains -- -- -- (0.02) (2.79) (0.81) ------- -------- -------- -------- -------- -------- TOTAL DISTRIBUTIONS -- -- -- (0.02) (2.79) (0.81) ------- -------- -------- -------- -------- -------- Change in net asset value 3.17 1.48 1.94 (1.46) (5.23) 6.27 ------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $17.44 $14.27 $12.79 $10.85 $12.31 $17.54 ====== ====== ====== ====== ====== ====== Total return(2) 22.21 %(3) 11.57 % 17.88 % (11.72)% (14.89)% 64.97 % RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $75,033 $71,296 $51,559 $49,201 $45,450 $28,046 RATIO TO AVERAGE NET ASSETS OF: Net operating expenses 2.15 %(4) 2.15 % 2.15 % 2.15 % 2.15 % 2.15 % Gross operating expenses 2.31 %(4) 2.32 % 2.46 % 2.39 % 2.33 % 2.42 % Net investment income (loss) (0.75)%(4) (1.14)% (0.72)% (0.86)% (1.14)% (1.20)% Portfolio turnover 48 %(3) 150 % 241 % 123 % 229 % 191 % (1) Computed using average shares outstanding. (2) Sales charges are not reflected in total return calculation. (3) Not annualized. (4) Annualized.
See Notes to Financial Statements 14 PHOENIX VALUE EQUITY FUND ABOUT YOUR FUND'S EXPENSES We believe it is important for you to understand the impact of costs on your investment. All mutual funds have operating expenses. As a shareholder of the Value Equity Fund, you incur two types of costs: (1) transaction costs, including sales charges on purchases of Class A shares and contingent deferred sales charges on Class B and Class C shares; and (2) ongoing costs, including investment advisory fees; distribution and service fees; and other expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period. ACTUAL EXPENSES The first line of the accompanying tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line of the accompanying tables provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not your Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the accompanying tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges or contingent deferred sales charges. Therefore, the second line of the accompanying tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions. Beginning Ending Expenses Paid Value Equity Fund Account Value Account Value During Class A August 31, 2004 February 28, 2005 Period* - -------------------------- --------------- ----------------- ------------- Actual $1,000.00 $1,114.52 $6.55 Hypothetical (5% return before expenses) 1,000.00 1,018.52 6.28 *EXPENSES ARE EQUAL TO THE FUND'S CLASS A ANNUALIZED EXPENSE RATIO OF 1.25%, WHICH IS NET OF WAIVED FEES AND REIMBURSED EXPENSES, IF APPLICABLE, MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY THE NUMBER OF DAYS IN THE MOST RECENT FISCAL HALF-YEAR, THEN DIVIDED BY 365 TO REFLECT THE ONE-HALF YEAR PERIOD. Beginning Ending Expenses Paid Value Equity Fund Account Value Account Value During Class B August 31, 2004 February 28, 2005 Period* - -------------------------- --------------- ----------------- ------------- Actual $1,000.00 $1,111.02 $10.47 Hypothetical (5% return before expenses) 1,000.00 1,014.75 10.04 *EXPENSES ARE EQUAL TO THE FUND'S CLASS B ANNUALIZED EXPENSE RATIO OF 2.00%, WHICH IS NET OF WAIVED FEES AND REIMBURSED EXPENSES, IF APPLICABLE, MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY THE NUMBER OF DAYS IN THE MOST RECENT FISCAL HALF-YEAR, THEN DIVIDED BY 365 TO REFLECT THE ONE-HALF YEAR PERIOD. Beginning Ending Expenses Paid Value Equity Fund Account Value Account Value During Class C August 31, 2004 February 28, 2005 Period* - -------------------------- --------------- ----------------- ------------- Actual $1,000.00 $1,110.92 $10.47 Hypothetical (5% return before expenses) 1,000.00 1,014.75 10.04 *EXPENSES ARE EQUAL TO THE FUND'S CLASS C ANNUALIZED EXPENSE RATIO OF 2.00%, WHICH IS NET OF WAIVED FEES AND REIMBURSED EXPENSES, IF APPLICABLE, MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY THE NUMBER OF DAYS IN THE MOST RECENT FISCAL HALF-YEAR, THEN DIVIDED BY 365 TO REFLECT THE ONE-HALF YEAR PERIOD. YOU CAN FIND MORE INFORMATION ABOUT THE FUNDS EXPENSES IN THE FINANCIAL STATEMENTS SECTION THAT FOLLOWS. FOR ADDITIONAL INFORMATION ON OPERATING EXPENSES AND OTHER SHAREHOLDER COSTS PLEASE REFER TO THE PROSPECTUS. 15 Phoenix Value Equity Fund - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS (UNAUDITED) 2/28/05 - -------------------------------------------------------------------------------- As a percentage of total investments [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA USED IN PRINTED GRAPHIC AS FOLLOWS: Financials 29% Industrials 18 Consumer Discretionary 11 Health Care 9 Energy 9 Information Technology 6 Utilities 6 Other 12 SCHEDULE OF INVESTMENTS FEBRUARY 28, 2005 (UNAUDITED) SHARES VALUE ------- ----------- DOMESTIC COMMON STOCKS--98.4% AEROSPACE & DEFENSE--1.8% United Technologies Corp. ....................... 10,500 $ 1,048,740 AIR FREIGHT & COURIERS--1.1% FedEx Corp. ..................................... 6,300 616,014 APPLICATION SOFTWARE--0.7% Amdocs Ltd.(b) .................................. 14,300 419,705 ASSET MANAGEMENT & CUSTODY BANKS--3.8% Bank of New York Co., Inc. (The) ................ 42,100 1,273,525 Mellon Financial Corp. .......................... 31,800 912,024 ----------- 2,185,549 ----------- BROADCASTING & CABLE TV--1.1% Comcast Corp. Special Class A(b) ................ 20,600 656,316 COMPUTER STORAGE & PERIPHERALS--0.7% EMC Corp.(b) .................................... 32,800 415,248 CONSTRUCTION & ENGINEERING--4.3% Jacobs Engineering Group, Inc.(b) ............... 34,700 1,942,506 URS Corp.(b) .................................... 19,500 562,380 ----------- 2,504,886 ----------- DATA PROCESSING & OUTSOURCED SERVICES--4.4% Affiliated Computer Services, Inc. Class A(b) ... 13,800 713,460 Computer Sciences Corp.(b) ...................... 28,500 1,317,555 Fiserv, Inc.(b) ................................. 7,800 295,932 Hewitt Associates, Inc. Class A(b) .............. 7,900 242,846 ----------- 2,569,793 ----------- SHARES VALUE ------- ----------- DISTRIBUTORS--0.1% Prestige Brands Holdings, Inc.(b) ............... 4,530 $ 81,540 DIVERSIFIED BANKS--9.4% Bank of America Corp. ........................... 48,516 2,263,271 Wachovia Corp. .................................. 33,300 1,765,233 Wells Fargo & Co. ............................... 23,500 1,395,430 ----------- 5,423,934 ----------- DIVERSIFIED CHEMICALS--1.5% Du Pont (E.I.) de Nemours & Co. ................. 16,500 879,450 DRUG RETAIL--2.1% CVS Corp. ....................................... 23,800 1,185,954 ELECTRIC UTILITIES--5.2% DTE Energy Co. .................................. 17,300 765,006 Entergy Corp. ................................... 12,400 857,088 FPL Group, Inc. ................................. 8,100 642,735 PG&E Corp. ...................................... 20,800 731,744 ----------- 2,996,573 ----------- ELECTRICAL COMPONENTS & EQUIPMENT--1.0% Emerson Electric Co. ............................ 9,000 596,880 EMPLOYMENT SERVICES--2.2% Manpower, Inc. .................................. 29,400 1,284,780 FOOTWEAR--0.8% NIKE, Inc. Class B .............................. 5,600 486,920 HEALTH CARE EQUIPMENT--3.4% Bio-Rad Laboratories, Inc. Class A(b) ........... 16,000 782,560 Fisher Scientific International, Inc.(b) ........ 19,200 1,164,480 ----------- 1,947,040 ----------- See Notes to Financial Statements 16 Phoenix Value Equity Fund SHARES VALUE ------- ----------- HEALTH CARE FACILITIES--1.0% HCA, Inc. ....................................... 12,700 $ 599,567 HEALTH CARE SERVICES--0.5% Express Scripts, Inc.(b) ........................ 3,800 286,102 HEALTH CARE SUPPLIES--3.0% DENTSPLY International, Inc. .................... 13,500 742,095 Sybron Dental Specialties, Inc.(b) .............. 27,800 993,016 ----------- 1,735,111 ----------- HOTELS, RESORTS & CRUISE LINES--2.4% Marriott International, Inc. Class A ............ 22,100 1,416,610 HOUSEHOLD PRODUCTS--0.7% Procter & Gamble Co. (The) ...................... 7,600 403,484 INDUSTRIAL CONGLOMERATES--5.0% General Electric Co. ............................ 82,500 2,904,000 INDUSTRIAL MACHINERY--3.0% Ingersoll-Rand Co. Class A ...................... 20,400 1,718,700 INTEGRATED OIL & GAS--6.6% ChevronTexaco Corp. ............................. 5,700 353,856 Exxon Mobil Corp. ............................... 54,800 3,469,388 ----------- 3,823,244 ----------- INTEGRATED TELECOMMUNICATION SERVICES--2.8% Iowa Telecommunications Services, Inc. .......... 3,000 59,580 SBC Communications, Inc. ........................ 29,300 704,665 Verizon Communications, Inc. .................... 23,300 838,101 ----------- 1,602,346 ----------- INVESTMENT BANKING & BROKERAGE--3.9% Merrill Lynch & Co., Inc. ....................... 27,100 1,587,518 Morgan Stanley .................................. 11,700 660,699 ----------- 2,248,217 ----------- LIFE & HEALTH INSURANCE--1.6% Prudential Financial, Inc. ...................... 15,800 900,600 MANAGED HEALTH CARE--1.0% WellPoint, Inc.(b) .............................. 4,800 585,888 MOVIES & ENTERTAINMENT--5.2% Time Warner, Inc.(b) ............................ 131,500 2,265,745 Walt Disney Co. (The) ........................... 25,800 720,852 ----------- 2,986,597 ----------- MULTI-UTILITIES & UNREGULATED POWER--1.1% Dominion Resources, Inc. ........................ 8,600 619,458 SHARES VALUE ------- ----------- OIL & GAS DRILLING--0.9% Patterson-UTI Energy, Inc. ...................... 21,000 $ 525,000 OIL & GAS EQUIPMENT & SERVICES--0.6% Baker Hughes, Inc. .............................. 7,300 345,144 OIL & GAS EXPLORATION & PRODUCTION--0.6% Anadarko Petroleum Corp. ........................ 4,600 353,556 OTHER DIVERSIFIED FINANCIAL SERVICES--4.2% Citigroup, Inc. ................................. 12,900 615,588 JPMorgan Chase & Co. ............................ 50,000 1,827,500 ----------- 2,443,088 ----------- PACKAGED FOODS & MEATS--2.2% ConAgra Foods, Inc. ............................. 24,500 669,340 Heinz (H.J.) Co. ................................ 15,700 590,948 ----------- 1,260,288 ----------- PROPERTY & CASUALTY INSURANCE--0.9% St. Paul Travelers Cos., Inc. (The) ............. 14,292 547,670 REITS--3.6% Digital Realty Trust, Inc. ...................... 59,700 855,501 Friedman, Billings, Ramsey Group, Inc. Class A .. 35,100 651,105 GMH Communities Trust ........................... 48,300 580,566 ----------- 2,087,172 ----------- SOFT DRINKS--1.1% Coca-Cola Co. (The) ............................. 14,900 637,720 SPECIALTY STORES--1.0% Pantry, Inc. (The)(b) ........................... 17,500 595,875 THRIFTS & MORTGAGE FINANCE--1.9% MGIC Investment Corp. ........................... 8,600 539,564 PMI Group, Inc. (The) ........................... 7,100 285,775 Radian Group, Inc. .............................. 6,100 294,813 ----------- 1,120,152 ----------- - ---------------------------------------------------------------------------- TOTAL DOMESTIC COMMON STOCKS (IDENTIFIED COST $48,876,229) 57,044,911 - ---------------------------------------------------------------------------- FOREIGN COMMON STOCKS(c)--0.5% SEMICONDUCTORS--0.5% ATI Technologies, Inc. (Canada)(b) .............. 15,700 275,378 - ---------------------------------------------------------------------------- TOTAL FOREIGN COMMON STOCKS (IDENTIFIED COST $286,888) 275,378 - ---------------------------------------------------------------------------- TOTAL LONG TERM INVESTMENTS--98.9% (IDENTIFIED COST $49,163,117) 57,320,289 - ---------------------------------------------------------------------------- See Notes to Financial Statements 17 Phoenix Value Equity Fund PAR VALUE (000) VALUE ----- ----------- SHORT-TERM INVESTMENTS--1.7% COMMERCIAL PAPER--1.7% UBS Finance Delaware LLC 2.59%, 3/1/05 .......... $980 $ 980,000 - ---------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $980,000) 980,000 - ---------------------------------------------------------------------------- TOTAL INVESTMENTS--100.6% (IDENTIFIED COST $50,143,117) 58,300,289(a) Other assets and liabilities, net--(0.6)% (356,825) ----------- NET ASSETS--100.0% $57,943,464 =========== (a) Federal Income Tax Information: Net unrealized appreciation of investment securities is comprised of gross appreciation of $8,360,522 and gross depreciation of $460,787 for federal income tax purposes. At February 28, 2005, the aggregate cost of securities for federal income tax purposes was $50,400,554. (b) Non-income producing. (c) Foreign Common Stocks are determined based on the country in which the security is issued. The country of risk, noted parenthetically, is determined based on criteria described in Note 2G "Foreign security country determination" in the Notes to Financial Statements. See Notes to Financial Statements 18 Phoenix Value Equity Fund STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 2005 (UNAUDITED) ASSETS Investment securities at value (Identified cost $50,143,117) $ 58,300,289 Cash 2,550 Receivables Investment securities sold 576,888 Dividends 104,778 Fund shares sold 17,139 Prepaid expenses 23,093 ------------ Total assets 59,024,737 ------------ LIABILITIES Payables Investment securities purchased 579,396 Fund shares repurchased 398,680 Transfer agent fee 27,629 Distribution and service fees 26,350 Professional fee 21,478 Investment advisory fee 7,796 Financial agent fee 5,094 Trustees' fee 3,901 Accrued expenses 10,949 ------------ Total liabilities 1,081,273 ------------ NET ASSETS $ 57,943,464 ============ NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $ 65,524,291 Undistributed net investment income 168,109 Accumulated net realized loss (15,906,108) Net unrealized appreciation 8,157,172 ------------ NET ASSETS $ 57,943,464 ============ CLASS A Shares of beneficial interest outstanding, no par value, unlimited authorization (Net Assets $31,964,390) 2,379,252 Net asset value per share $13.43 Offering price per share $13.43/(1-5.75%) $14.25 CLASS B Shares of beneficial interest outstanding, no par value, unlimited authorization (Net Assets $13,423,615) 1,039,901 Net asset value and offering price per share $12.91 CLASS C Shares of beneficial interest outstanding, no par value, unlimited authorization (Net Assets $12,555,459) 972,028 Net asset value and offering price per share $12.92 STATEMENT OF OPERATIONS SIX MONTHS ENDED FEBRUARY 28, 2005 (UNAUDITED) INVESTMENT INCOME Dividends $ 620,521 Interest 14,310 ---------- Total investment income 634,831 ---------- EXPENSES Investment advisory fee 221,054 Service fees, Class A 40,919 Distribution and service fees, Class B 67,579 Distribution and service fees, Class C 63,485 Financial agent fee 32,460 Transfer agent 73,382 Trustees 20,790 Printing 20,634 Registration 18,923 Professional 18,708 Custodian 7,183 Miscellaneous 11,120 ---------- Total expenses 596,237 Less expenses reimbursed by investment adviser (129,515) ---------- Net expenses 466,722 ---------- NET INVESTMENT INCOME 168,109 ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain on securities 3,034,816 Net change in unrealized appreciation (depreciation) on investments 3,119,475 ---------- NET GAIN ON INVESTMENTS 6,154,291 ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $6,322,400 ========== See Notes to Financial Statements 19 Phoenix Value Equity Fund STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended February 28, 2005 Year Ended (Unaudited) August 31, 2004 ----------- --------------- FROM OPERATIONS Net investment income (loss) $ 168,109 $ 14,739 Net realized gain (loss) 3,034,816 6,012,009 Net change in unrealized appreciation (depreciation) 3,119,475 (1,758,372) ----------- ------------ INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 6,322,400 4,268,376 ----------- ------------ FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income, Class A -- (123,233) Net investment income, Class B -- (30,551) Net investment income, Class C -- (28,415) ----------- ------------ DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS -- (182,199) ----------- ------------ FROM SHARE TRANSACTIONS CLASS A Proceeds from sales of shares (163,027 and 614,291 shares, respectively) 2,132,499 7,356,934 Net asset value of shares issued from reinvestment of distributions (0 and 10,049 shares, respectively) -- 118,886 Cost of shares repurchased (509,857 and 1,192,023 shares, respectively) (6,597,471) (14,324,559) ----------- ------------ Total (4,464,972) (6,848,739) ----------- ------------ CLASS B Proceeds from sales of shares (54,840 and 145,182 shares, respectively) 688,727 1,682,300 Net asset value of shares issued from reinvestment of distributions (0 and 2,377 shares, respectively) -- 27,241 Cost of shares repurchased (154,513 and 496,749 shares, respectively) (1,938,918) (5,708,222) ----------- ------------ Total (1,250,191) (3,998,681) ----------- ------------ CLASS C Proceeds from sales of shares (37,229 and 248,897 shares, respectively) 475,355 2,920,735 Net asset value of shares issued from reinvestment of distributions (0 and 2,239 shares, respectively) -- 25,685 Cost of shares repurchased (205,689 and 511,506 shares, respectively) (2,511,787) (5,893,378) ----------- ------------ Total (2,036,432) (2,946,958) ----------- ------------ INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (7,751,595) (13,794,378) ----------- ------------ NET INCREASE (DECREASE) IN NET ASSETS (1,429,195) (9,708,201) NET ASSETS Beginning of period 59,372,659 69,080,860 ----------- ------------ END OF PERIOD [INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $168,109 AND $0 RESPECTIVELY] $57,943,464 $ 59,372,659 =========== ============
See Notes to Financial Statements 20 Phoenix Value Equity Fund FINANCIAL HIGHLIGHTS (SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS A --------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED AUGUST 31 FEBRUARY 28, 2005 ---------------------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 Net asset value, beginning of period $12.05 $11.33 $10.64 $12.76 $15.03 $12.11 INCOME FROM INVESTMENT OPERATIONS Net investment income (loss)(1) 0.06 0.04 0.11 0.08 0.08 0.03 Net realized and unrealized gain (loss) 1.32 0.72 0.66 (1.97) (0.93) 2.89 ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 1.38 0.76 0.77 (1.89) (0.85) 2.92 ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS Dividends from net investment income -- (0.04) (0.08) (0.08) -- -- Distributions from net realized gains -- -- -- (0.15) (1.42) -- ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS -- (0.04) (0.08) (0.23) (1.42) -- ------ ------ ------ ------ ------ ------ Change in net asset value 1.38 0.72 0.69 (2.12) (2.27) 2.92 ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $13.43 $12.05 $11.33 $10.64 $12.76 $15.03 ====== ====== ====== ====== ====== ====== Total return(2) 11.45%(3) 6.71% 7.31% (14.97)% (6.71)% 24.11% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $31,964 $32,859 $37,310 $43,993 $58,260 $37,977 RATIO TO AVERAGE NET ASSETS OF: Net operating expense 1.25%(4) 1.25% 1.25% 1.25 % 1.25 % 1.25% Gross operating expenses 1.69%(4) 1.59% 1.63% 1.49 % 1.38 % 1.47% Net investment income 0.90%(4) 0.35% 1.06% 0.64 % 0.53 % 0.20% Portfolio turnover 47%(3) 200% 349% 166 % 249 % 193% CLASS B --------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED AUGUST 31 FEBRUARY 28, 2005 ---------------------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 Net asset value, beginning of period $11.62 $10.99 $10.35 $12.42 $14.77 $12.00 INCOME FROM INVESTMENT OPERATIONS Net investment income (loss)(1) 0.01 (0.05) 0.04 (0.01) (0.03) (0.08) Net realized and unrealized gain (loss) 1.28 0.70 0.63 (1.91) (0.90) 2.85 ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 1.29 0.65 0.67 (1.92) (0.93) 2.77 ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS Dividends from net investment income -- (0.02) (0.03) -- -- -- Distributions from net realized gains -- -- -- (0.15) (1.42) -- ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS -- (0.02) (0.03) (0.15) (1.42) -- ------ ------ ------ ------ ------ ------ Change in net asset value 1.29 0.63 0.64 (2.07) (2.35) 2.77 ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $12.91 $11.62 $10.99 $10.35 $12.42 $14.77 ====== ====== ====== ====== ====== ====== Total return(2) 11.10%(3) 5.95 % 6.44% (15.57)% (7.42)% 23.08 % RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $13,424 $13,247 $16,363 $28,873 $36,669 $26,471 RATIO TO AVERAGE NET ASSETS OF: Net operating expenses 2.00%(4) 2.00 % 2.00% 2.00 % 2.00 % 2.00 % Gross operating expenses 2.44%(4) 2.34 % 2.38% 2.24 % 2.13 % 2.22 % Net investment income (loss) 0.15%(4) (0.40)% 0.37% (0.11)% (0.22)% (0.57)% Portfolio turnover 47%(3) 200 % 349% 166 % 249 % 193 % (1) Computed using average shares outstanding. (2) Sales charges are not reflected in total return calculation. (3) Not annualized. (4) Annualized.
See Notes to Financial Statements 21 Phoenix Value Equity Fund FINANCIAL HIGHLIGHTS (SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS C --------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED AUGUST 31 FEBRUARY 28, 2005 ---------------------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 Net asset value, beginning of period $11.63 $11.00 $10.35 $12.43 $14.78 $12.00 INCOME FROM INVESTMENT OPERATIONS Net investment income (loss)(1) 0.01 (0.05) 0.03 (0.01) (0.03) (0.07) Net realized and unrealized gain (loss) 1.28 0.70 0.65 (1.92) (0.90) 2.85 ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS 1.29 0.65 0.68 (1.93) (0.93) 2.78 ------ ------ ------ ------ ------ ------ LESS DISTRIBUTIONS Dividends from net investment income -- (0.02) (0.03) -- -- -- Distributions from net realized gains -- -- -- (0.15) (1.42) -- ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS -- (0.02) (0.03) (0.15) (1.42) -- ------ ------ ------ ------ ------ ------ Change in net asset value 1.29 0.63 0.65 (2.08) (2.35) 2.78 ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $12.92 $11.63 $11.00 $10.35 $12.43 $14.78 ====== ====== ====== ====== ====== ====== Total return(2) 11.09%(3) 5.94 % 6.47% (15.56)% (7.41)% 23.17 % RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $12,555 $13,266 $15,408 $19,231 $23,409 $12,590 RATIO TO AVERAGE NET ASSETS OF: Net operating expenses 2.00%(4) 2.00 % 2.00% 2.00 % 2.00 % 2.00 % Gross operating expenses 2.44%(4) 2.34 % 2.38% 2.24 % 2.13 % 2.22 % Net investment income (loss) 0.15%(4) (0.40)% 0.31% (0.11)% (0.22)% (0.52)% Portfolio turnover 47%(3) 200 % 349% 166 % 249 % 193 % (1) Computed using average shares outstanding. (2) Sales charges are not reflected in total return calculation. (3) Not annualized. (4) Annualized.
See Notes to Financial Statements 22 PHOENIX INVESTMENT TRUST 97 NOTES TO FINANCIAL STATEMENTS FEBRUARY 28, 2005 (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 Value Equity Fund (formerly Phoenix-Oakhurst Value Equity Fund through January 2, 2005) 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 and liabilities, contingent assets and liabilities at the date of the financial statements and reported amount of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. A. SECURITY VALUATION: Equity securities are valued at the official closing price (typically last sale) on the exchange on which the securities are primarily traded, or if no closing price is available, at the last bid price. Debt securities are valued on the basis of broker quotations or valuations provided by a pricing service, which utilizes information with respect to recent sales, market transactions in comparable securities, quotations from dealers, and various relationships between securities in determining value. As required some securities and assets are valued at fair value as determined in good faith by or under the direction of the Trustees. Certain foreign common stocks may be fair valued in cases where closing prices are not readily available or are deemed not reflective of readily available market prices. For example, significant events (such as movement in the U.S. securities market, or other regional and local developments) may occur between the time that foreign markets close (where the security is principally traded) and the time that the Fund calculates its net asset value (generally, the close of the NYSE) that may impact the value of securities traded in these foreign markets. In these cases, information from an external vendor may be utilized to adjust closing market prices of certain foreign common stocks to reflect their fair value. Because the frequency of significant events is not predictable, fair valuation of certain foreign common stocks may occur on a frequent basis. Short-term investments having a remaining maturity of 60 days or less are valued at amortized cost, which approximates market. B. SECURITY TRANSACTIONS AND RELATED INCOME: Security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date, or in the case of certain foreign securities, as soon as the Fund is notified. Interest income is recorded on the accrual basis. 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") and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes or excise taxes has been made. The Trust may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Each Fund will accrue such taxes and recoveries as applicable based upon current interpretations of the tax rules and regulations that exist in the markets in which 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, operating losses and losses deferred due to wash sales. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital paid in on shares of beneficial interest. 23 PHOENIX INVESTMENT TRUST 97 NOTES TO FINANCIAL STATEMENTS FEBRUARY 28, 2005 (UNAUDITED) (CONTINUED) E. EXPENSES: Expenses incurred by the Trust with respect to any two or more funds are allocated in proportion to the net assets of each Fund, except where allocation of direct expense to each Fund or an alternative allocation method can be more appropriately made. F. FOREIGN CURRENCY TRANSLATION: Foreign securities and other assets and liabilities are valued using the foreign currency exchange rate effective at the end of the reporting period. Cost of investments is translated at the currency exchange rate effective at the trade date. The gain or loss resulting from a change in currency exchange rates between the trade and settlement date of a portfolio transaction is treated as a gain or loss on foreign currency. Likewise, the gain or loss resulting from a change in currency exchange rates between the date income is accrued and paid is treated as a gain or loss on foreign currency. The Trust does not isolate that portion of the results of operations arising from changes in exchange rates and that portion arising from changes in the market prices of securities. G. FOREIGN SECURITY COUNTRY DETERMINATION: A combination of the following criteria is used to assign the countries of risk listed in the schedules of investments: country of incorporation, actual building address, primary exchange on which security is traded and country in which the greatest percentage of company revenue is generated. H. INDEMNIFICATIONS Under the Funds' organizational documents, its trustees and officers are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, the Funds enter into contracts that contain a variety of indemnifications. The Funds' maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. 3. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS As compensation for its services to the Trust, the Advisers ("the Advisers"), Phoenix Investment Counsel, Inc. ("PIC") for the Small Cap Value Fund and Engemann Asset Management ("EAM") for the Value Equity Fund, each indirect wholly-owned subsidiaries of The Phoenix Companies, Inc. ("PNX"), are entitled to a fee based upon the following annual rates as a percentage of the average daily net assets of each Fund: 1st $1-2 $2 + 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 Advisers have voluntarily agreed to reimburse through December 31, 2005 each Fund's expenses, other than Management Fees and Distribution and Service Fees, to the extent that such expenses exceed the following percentages of the average annual net assets 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% The Advisers will not seek to recapture any prior years' reimbursed or waived investment advisory fees. Phoenix/Zweig Advisers LLC ("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 six-month period ("the period") ended February 28, 2005 as follows: Class A Class B Class C Net Selling Deferred Deferred Commissions Sales Charges Sales Charges ----------- ------------- ------------- Small Cap Value Fund .......... $4,908 $42,288 $1,476 Value Equity Fund ............. 1,496 18,135 58 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. Under certain circumstances, shares of certain Phoenix Funds may be exchanged for shares of the same class of certain other Phoenix Funds on the basis of the relative net asset values per share at the time of the exchange. On exchanges with share classes that carry a contingent deferred sales charge, the CDSC schedule of the original shares purchased continues to apply. As Financial Agent of the Trust, PEPCO receives a financial agent fee equal to the sum of (1) the documented cost to PEPCO to provide tax services and oversight of the performance of PFPC Inc. (subagent to PEPCO), plus (2) the documented cost of fund accounting and related services provided by PFPC Inc. The current fee schedule of PFPC Inc. ranges from 0.06% to 0.03% of the average daily net asset values of each Fund. Certain minimum fees may apply. For the period ended February 28, 2005, the Trust incurred PEPCO financial agent fees totaling $124,260. PEPCO serves as the Trust's Transfer Agent with State Street Bank and Trust Company serving as sub-transfer agent. For the period 24 PHOENIX INVESTMENT TRUST 97 NOTES TO FINANCIAL STATEMENTS FEBRUARY 28, 2005 (UNAUDITED) (CONTINUED) ended February 28, 2005, transfer agent fees were $362,080 as reported in the Statement of Operations, of which PEPCO retained the following: Transfer Agent Fee Retained -------------- Small Cap Value Fund .............................. $116,677 Value Equity Fund ................................. 18,881 4. PURCHASES AND SALES OF SECURITIES Purchases and sales of securities during the period ended February 28, 2005 (excluding U.S. Government and agency securities and short-term securities) aggregated the following: Purchases Sales ------------ ------------ Small Cap Value Fund ................... $123,667,496 $154,049,463 Value Equity Fund ...................... 26,973,553 33,654,427 There were no purchases or sales of long-term U.S. Government and agency securities during the period ended February 28, 2005. 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. The Trust 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. 6. ILLIQUID SECURITIES Investments shall be considered illiquid if they cannot be disposed of in seven days in the ordinary course of business at the approximate amount at which such securities have been valued by the Fund. Additionally, the following information is also considered in determining illiquidity: the frequency of trades and quotes for the investment, whether the investment is listed for trading on a recognized domestic exchange and/or whether two or more brokers are willing to purchase or sell the security at a comparable price, the extent of market making activity in the investment and the nature of the market for investment. Illiquid securities are footnoted as such at the end of the Fund's Schedule of Investments where applicable. 7. FEDERAL INCOME TAX INFORMATION The Trust has capital loss carryovers which may be used to offset future capital gains, as follows: Expiration Year -------------------------------------------- 2010 2011 Total ---------- ----------- ----------- Small Cap Value Fund ...... $ -- $ 3,061,298 $ 3,061,298 Value Equity Fund ......... 1,868,023 16,397,090 18,265,113 The Trust may not realize the benefit of these losses to the extent each Fund does not realize gains on investments prior to the expiration of the capital loss carryovers. 8. MERGER On April 16, 2004, the Phoenix Small Cap Value Fund ("Small Cap") acquired all of the net assets of the Phoenix Appreciation Fund ("Appreciation") pursuant to an Agreement and Plan of Reorganization approved by the Appreciation shareholders on March 19, 2004. The acquisition was accomplished by a tax-free exchange of 4,064,701 Class A shares of Small Cap, 462,034 Class B shares of Small Cap and 1,970,027 Class C shares of Small Cap (valued at $62,404,841, $6,731,032, and $28,697,143, respectively) for 6,338,617 Class A shares of Appreciation, 723,453 Class B shares of Appreciation and 3,089,535 Class C shares of Appreciation outstanding on April 16, 2004. Appreciation's net assets on that date, $97,833,016, including $8,165,738 appreciation, were combined with those of Small Cap. The aggregate net assets of Small Cap immediately after the merger were $268,632,994. The shareholders of each Class of Appreciation received for each share owned approximately 0.64, 0.64 and 0.64 shares, respectively, for Class A, Class B and Class C shares of the same class of Small Cap. 9. PROXY VOTING PROCEDURES The Adviser and subadviser vote proxies relating to portfolio securities in accordance with procedures that have been approved by the Fund's Board of Trustees. You may obtain a description of these procedures, along with information regarding how the Funds voted proxies during the most recent twelve-month period ended June 30, 2004, 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. 10. FORM N-Q INFORMATION Effective November 30, 2004, the Trust files complete schedules of portfolio holdings with the Securities and Exchange Commission (the "SEC") for the first and third quarters of each fiscal year on Form N-Q. Each Form N-Q is available on the SEC's website at http://www.sec.gov. Form N-Q may be reviewed and copied at the SEC's Public Reference Room. Information on the operation of the SEC's Public Reference Room can be obtained at http://www.sec.gov/info/edgar/prrules.htm. 25 FUND MANAGEMENT (UNAUDITED) 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 42 Chairman, Rittenhouse Advisors, LLC (consulting firm) since Rittenhouse Advisors, LLC 1997. 2001. Trustee/Director, Realty Foundation of New York 101 Park Avenue (1972-present), Josiah Macy, Jr. Foundation (Honorary) New York, NY 10178 (2004-present), Pace University (Director/Trustee Emeritus) DOB: 8/2/29 (2003-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), Colgate University (Trustee Emeritus) (since 2004). Director/Trustee, The Harlem Youth Development Foundation, (Chairman) (1998-2002), Metropolitan Transportation Authority (Chairman) (1992-2001), Trism, Inc. (1994-2001), Consolidated Edison Company of New York, Inc. (1970-2002), Atlantic Mutual Insurance Company (1974-2002), Centennial Insurance Company (1974-2002), Union Pacific Corp. (1978-2002), BlackRock Freddie Mac Mortgage Securities Fund (Advisory Director) (1990-2000), Accuhealth (1994-2002), Pace University (1978-2003), New York Housing Partnership Development Corp. (Chairman) (1981-2003), Josiah Macy, Jr. Foundation (1975-2004). - ------------------------------------------------------------------------------------------------------------------------------------ Harry Dalzell-Payne Served since 42 Currently retired. Trustee/Director, Phoenix Funds Complex The Flat, Elmore Court 1997. (1988-present). Elmore, GL0S, GL2 3NT U.K. DOB: 9/8/29 - ------------------------------------------------------------------------------------------------------------------------------------ S. Leland Dill Served since 40 Currently retired. Trustee, Phoenix Funds Complex 7721 Blue Heron Way 2004. (1989-present). Trustee, Scudder Investments (33 portfolios) West Palm Beach, FL 33412 (1986-present). Director, Coutts & Co. Trust Holdings Limited DOB: 3/28/30 (1991-2000), Coutts & Co. Group (1991-2000) and Coutts & Co. International (USA) (private banking) (1991-2000). - ------------------------------------------------------------------------------------------------------------------------------------ Francis E. Jeffries Served since 42 Director, The Empire District Electric Company (1984-2004). 8477 Bay Colony Dr. #902 1997. Trustee/Director, Phoenix Funds Complex (1995-present). Naples, FL 34108 DOB: 9/23/30 - ------------------------------------------------------------------------------------------------------------------------------------ Leroy Keith, Jr. Served since 40 Partner, Stonington Partners, Inc. (private equity fund) since Stonington Partners, Inc. 1997. 2001. Director/Trustee, Evergreen Funds (six portfolios). 736 Market Street, Trustee, Phoenix Funds Complex (1980-present). Chairman (1998 to Ste. 1430 2000) and Chief Executive Officer (1995-1998), Carson Products Chattanooga, TN 37402 Company (cosmetics). DOB: 2/14/39 - ------------------------------------------------------------------------------------------------------------------------------------
26 FUND MANAGEMENT (UNAUDITED) (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 - ------------------------------------------------------------------------------------------------------------------------------------ Geraldine M. McNamara Served since 42 Managing Director, U.S. Trust Company of New York (private bank) U.S. Trust Company of 2001. (1982-present). Trustee/Director, Phoenix Funds Complex New York (2001-present). 11 West 54th Street New York, NY 10019 DOB: 4/17/51 - ------------------------------------------------------------------------------------------------------------------------------------ Everett L. Morris Served since 42 Currently retired. Trustee/Director, Phoenix Funds Complex 164 Laird Road 1997. (1995-present). Director, W.H. Reaves and Company Colts Neck, NJ 07722 (2004-present). Vice President, W.H. Reaves and Company DOB: 5/26/28 (investment management) (1993-2003). - ------------------------------------------------------------------------------------------------------------------------------------ James M. Oates Served since 40 Chairman, Hudson Castle Group, Inc. (Formerly IBEX Capital c/o Northeast Partners 1997. Markets, Inc.) (financial services) (1997-present). Managing 150 Federal Street, Director Wydown Group (consulting firm) (1994-present). Suite 1000 Director, Investors Financial Service Corporation Boston, MA 02110 (1995-present), Investors Bank & Trust Corporation DOB: 5/31/46 (1995-present), Stifel Financial (1996-present), Connecticut River Bancorp (1998-present), Connecticut River Bank (1999-present), Trust Company of New Hampshire (2002-present). Chairman, Emerson Investment Management, Inc. (2000-present). Vice Chairman, Massachusetts Housing Partnership (1994-1999). Director/Trustee, John Hancock Trust (2004-present), Blue Cross and Blue Shield of New Hampshire (1994-1999), AIB Govett Funds (1991-2000) and Command Systems, Inc. (1998-2000), Phoenix Investment Partners, Ltd. (1995-2001), 1Mind, Inc. (2000-2002), 1Mind.com, Plymouth Rubber Co. (1995-2003). Director and Treasurer, Endowment for Health, Inc. (2000-2004). - ------------------------------------------------------------------------------------------------------------------------------------ Donald B. Romans Served since 40 Currently retired. President, Romans & Company (private 39 S. Sheridan Road 2004. investors and financial consultants) (1987-2003). Lake Forest, IL 60045 Trustee/Director, Phoenix Funds Complex (1985-present). DOB: 4/22/31 Trustee, Burnham Investors Trust (5 portfolios) (1967-2003). - ------------------------------------------------------------------------------------------------------------------------------------ Richard E. Segerson Served since 40 Managing Director, Northway Management Company (1998-present). Northway Management 1997. Trustee/Director, Phoenix Funds Complex (1988-present). Company 164 Mason Street Greenwich, CT 06830 DOB: 2/16/46 - ------------------------------------------------------------------------------------------------------------------------------------ Ferdinand L. J. Verdonck Served since 40 Director, Banco Urquijo (Chairman). Trustee, Phoenix Funds Nederpolder, 7 2004. Complex (2004-present). Director EASDAQ (Chairman), The Fleming B-9000 Gent, Belgium Continental European Investment Trust, Groupe SNEF, Degussa DOB: 7/30/42 Antwerpen N.V., Santens N.V. Managing Director, Almanij N.V. (1992-2003); Director, KBC Bank and Insurance Holding Company (Euronext) (1992-2003), KBC Bank (1992-2003), KBC Insurance (1992-2003), Kredietbank, S.A. Luxembourgeoise (1992-2003), Investco N.V. (1992-2003), Gevaert N.V. (1992-2003), Fidea N.V. (1992-2003), Almafin N.V. (1992-2003), Centea N.V. (1992-2003), Dutch Chamber of Commerce for Belgium and Luxemburg, Phoenix Investment Partners, Ltd. (1995-2001). - ------------------------------------------------------------------------------------------------------------------------------------
27 FUND MANAGEMENT (UNAUDITED) (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 - ------------------------------------------------------------------------------------------------------------------------------------ Lowell P. Weicker, Jr. Served since 40 Director, Medallion Financial New York (2003-present), Compuware 7 Little Point Street 1997. (1996-present), WWF, Inc. (2000-present). President, The Trust Essex, CT 06426 for America's Health (non-profit) (2001-present). DOB: 5/16/31 (Trustee/Director), Phoenix Funds Complex (1995-present). Director, UST, Inc. (1995-2004), HPSC Inc. (1995-2004). - ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES Each of the individuals listed below is an "interested person" of the Fund, as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended, and the rules and regulations thereunder.
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 - ------------------------------------------------------------------------------------------------------------------------------------ * Marilyn E. LaMarche Served since 40 Limited Managing Director, Lazard Freres & Co. LLC Lazard Freres & Co. LLC 2002. (1997-present). Director, The Phoenix Companies, Inc. 30 Rockefeller Plaza, (2001-present) and Phoenix Life Insurance Company 59th Floor (1989-present). Trustee/Director, Phoenix Funds Complex (2002- New York, NY 10020 present). DOB: 5/11/34 - ------------------------------------------------------------------------------------------------------------------------------------ **Philip R. McLoughlin Served since 68 Director, PXRE Corporation (Delaware) (1985-present), World DOB: 10/23/46 1997. Trust Fund (1991-present). Management Consultant (2002-2004), Chairman (1997-2002), Chief Executive Officer (1995-2002), Director (1995-2002) and Vice Chairman (1995-1997), 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 (2001-2002). 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) and Chief Investment Counsel (1994-2002), PHL Variable Insurance Company. Director, Phoenix National Trust Holding Company (2001-2002). Director (1985-2002) and Vice President (1986-2002) and Executive Vice President (2002-2002), PM Holdings, Inc. Director, W.S. Griffith Associates, Inc. (1995-2002). Director (1992-2002) and President (1993-1994), W.S. Griffith Securities, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ * 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 former relationship with Phoenix Investment Partners, Ltd. and its affiliates.
28 FUND MANAGEMENT (UNAUDITED) (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 - ------------------------------------------------------------------------------------------------------------------------------------ Daniel T. Geraci President since 2004. Executive Vice President, Asset Management, The Phoenix DOB: 6/12/57 Companies, Inc. (wealth management) (since 2003). President and Chief Executive Officer, Phoenix Investment Partners, Ltd. (since 2003). President, certain Funds within the Phoenix Fund Complex (2004-present), President and Chief Executive Officer of North American investment operations, Pioneer Investment Management USA, Inc. (2001-2003). President of Private Wealth Management Group (2000-2001), Executive Vice President of Distribution and Marketing for U.S. institutional services business (1998-2000) and Executive Vice President of Distribution and Marketing for Fidelity Canada (1996-1998), Fidelity Investments. - ------------------------------------------------------------------------------------------------------------------------------------ George R. Aylward Executive Vice President Senior Vice President and Chief Operating Officer, Asset DOB: 8/17/64 since 2004. Management, The Phoenix Companies, Inc. (2004-present). Executive Vice President and Chief Operating Officer, Phoenix Investment Partners, Ltd. (2004-present). Vice President, The Phoenix Companies, Inc. (2001-2004). Vice President, Phoenix Life Insurance Company (2002-2004). Vice President, Finance, Phoenix Investment Partners, Ltd. (2001-2002). Assistant Controller, Phoenix Investment Partners, Ltd. (1996-2001). - ------------------------------------------------------------------------------------------------------------------------------------ Francis G. Waltman Senior Vice President Vice President, Chief Administrative Officer (2003-present), DOB: 7/27/62 since 2004. Senior Vice President, Chief Administrative Officer, Private Client Group (1999-2003), Phoenix Investment Partners, Ltd. Senior Vice President, certain funds within the Phoenix Fund Complex (2004-present). - ------------------------------------------------------------------------------------------------------------------------------------ Nancy G. Curtiss Treasurer since 1996. Vice President, Fund Accounting (1994-2000), Treasurer DOB: 11/24/52 (1996-2000), Assistant Treasurer (2001-present), Phoenix Equity Planning Corporation. Vice President (2003-present), Phoenix Investment Partners,Ltd. Treasurer or Assistant Treasurer, certain funds within the Phoenix Fund Complex (1994-present). - ------------------------------------------------------------------------------------------------------------------------------------ Matthew A. Swendiman Secretary since 2004. Counsel, Phoenix Life Insurance Company (2002-present). Vice One American Row President, Counsel, Chief Legal Officer and Secretary, certain Hartford, CT 06102 of the funds within the Phoenix Fund Complex (2004-present). DOB: 4/5/73 Assistant Vice President and Assistant Counsel, Conseco Capital Management (2000-2002). - ------------------------------------------------------------------------------------------------------------------------------------
29 PHOENIX INVESTMENT TRUST 97 101 Munson Street Greenfield, Massachusetts 01301 TRUSTEES E. Virgil Conway Harry Dalzell-Payne S. Leland Dill Francis E. Jeffries Leroy Keith, Jr. Marilyn E. LaMarche Philip R. McLoughlin Geraldine M. McNamara Everett L. Morris James M. Oates Donald B. Romans Richard E. Segerson Ferdinand L. J. Verdonck Lowell P. Weicker, Jr. OFFICERS Daniel T. Geraci, President George R. Aylward, Executive Vice President Francis G. Waltman, Senior Vice President Nancy G. Curtiss, Treasurer Matthew A. Swendiman, Secretary and Chief Legal Officer INVESTMENT ADVISER Phoenix Investment Counsel, Inc. Phoenix Small Cap Value Fund 56 Prospect Street Hartford, Connecticut 06115-0480 Engemann Asset Management Phoenix Value Equity Fund 600 North Rosemead Boulevard Pasadena, California 91107-2133 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 HOW TO CONTACT US Mutual Fund Services 1-800-243-1574 Advisor Consulting Group 1-800-243-4361 Telephone Orders 1-800-367-5877 Text Telephone 1-800-243-1926 Web site 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 [GRAPHIC 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 1-800-243-1574 or PHOENIXINVESTMENTS.COM. NOT INSURED BY FDIC/NCUSIF OR ANY FEDERAL GOVERNMENT AGENCY. NO BANK GUARANTEE. NOT A DEPOSIT. MAY LOSE VALUE. PXP214 4-05 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. SCHEDULE OF INVESTMENTS Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant's board of 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 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) Not applicable. (a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. (a)(3) Not applicable. (b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (registrant) Phoenix Investment Trust 97 ------------------------------------------------------------------ By (Signature and Title)* /s/ George R. Aylward ------------------------------------------------------- George R. Aylward, Executive Vice President (principal executive officer) Date May 5, 2005 ---------------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ George R. Aylward ------------------------------------------------------- George R. Aylward, Executive Vice President (principal executive officer) Date May 5, 2005 ---------------------------------------------------------------------------- By (Signature and Title)* /s/ Nancy G. Curtiss ------------------------------------------------------- Nancy G. Curtiss, Treasurer (principal financial officer) Date May 5, 2005 ---------------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 g15224_cert302.txt CERTIFICATION 302 CERTIFICATION PURSUANT TO RULE 30A-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT I, George R. Aylward, certify that: 1. I have reviewed this report on Form N-CSR of Phoenix 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) 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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: MAY 5, 2005 /s/ George R. Aylward ----------------------- ------------------------------------------- George R. Aylward, Executive Vice President (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) 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 the registrant's second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; 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: May 5, 2005 /s/ Nancy G. Curtiss ------------------------------- ------------------------------ Nancy G. Curtiss, Treasurer (principal financial officer) EX-99.CERT906 3 g15224_cert906.txt CERTIFICATION 906 CERTIFICATION PURSUANT TO RULE 30A-2(b) UNDER THE 1940 ACT AND SECTION 906 OF THE SARBANES-OXLEY ACT I, George R. Aylward, Executive Vice President 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: May 5, 2005 /s/ George R. Aylward ----------------------------- ---------------------------------- George R. Aylward, Executive Vice President (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: May 5, 2005 /s/ Nancy G. Curtiss ------------------------------- ----------------------------- Nancy G. Curtiss, Treasurer (principal financial officer) -----END PRIVACY-ENHANCED MESSAGE-----