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
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Phoenix Investment Trust 97
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(Exact name of registrant as specified in charter)
56 Prospect Street
Hartford, CT 06115
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(Address of principal executive offices) (Zip code)
PFPC Inc.
301 Bellevue Parkway
Wilmington, DE 19809
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(Name and address of agent for service)
Registrant's telephone number, including area code: 302-791-3197
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Date of fiscal year end: August 31, 2003
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Date of reporting period: August 31, 2003
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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.
Annual Report
AUGUST 31, 2003
Hollister
Phoenix-Hollister Small Cap Value Fund
Phoenix-Hollister Value Equity Fund
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[GRAPHIC OMITTED]
PHOENIX INVESTMENT PARTNERS, LTD.
COMMITTED TO INVESTOR SUCCESS SM
MESSAGE FROM THE CHAIRMAN
PHOTO
OMITTED
DEAR SHAREHOLDER:
I hope you'll take time to review the activities and performance included
in this annual report for the Phoenix Investment Trust 97.
With this writing, we are witnessing new signs of life in the equity
markets, and I am encouraged that we may be moving toward a more rewarding
period. Now is an opportune time for you to review your investments with your
financial advisor to be sure your portfolio is best positioned to achieve
long-term success.
Keep in mind that finding the best balance of performance and protection
requires discipline and diversification. 1 Your investments in Phoenix-Hollister
Small Cap Value Fund 2 and Phoenix-Hollister Value Equity Fund may help you in
this effort. To learn more about your investments and investing, visit
PhoenixInvestments.com.
Sincerely,
/S/ PHILIP R. MCLOUGHLIN
Philip R. McLoughlin
Chairman, Phoenix Funds
AUGUST 31, 2003
1 DIVERSIFICATION DOES NOT GUARANTEE AGAINST A LOSS, AND THERE IS NO GUARANTEE
THAT A DIVERSIFIED PORTFOLIO WILL OUTPERFORM A NON-DIVERSIFIED PORTFOLIO.
2 SMALL-CAP INVESTING INVOLVES ADDED RISKS INCLUDING GREATER PUBLIC VOLATILITY,
LESS LIQUIDITY, AND INCREASED COMPETITIVE THREAT.
- --------------------------------------------------------------------------------
Mutual funds are not insured by the FDIC; are not deposits or other obligations
of a bank and are not guaranteed by a bank; and are subject to investment risks,
including possible loss of the principal invested.
- --------------------------------------------------------------------------------
1
PHOENIX-HOLLISTER SMALL CAP VALUE FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Phoenix-Hollister Small Cap Value Fund is designed for long-term
investors seeking capital appreciation. Investors should note that the risks of
investing in small-company stocks may include relatively low trading volumes, a
greater degree of change in earnings, and greater short-term volatility.
Q: HOW DID THE FUND PERFORM OVER THE PAST 12 MONTHS ENDED AUGUST 31, 2003?
A: Reversing their preceding annual performances, all of the major stock indexes
recorded a strong year for the 12 months ended August 31, 2003. The Fund also
rebounded in this market environment. For the fiscal year ended August 31, 2003,
Class A shares rose 18.76%, Class B shares rose 17.88%, and Class C shares were
also up 17.88%. For the same period, the Russell 2000 Index 1 rose 29.08%, and
the Russell 2000 Value Index 2 was up 23.68%. The broad-based S&P
500(R) Index 3 rose 12.09%. All performance figures assume
reinvestment of distributions and exclude the effect of sales charges. Past
performance is not a guarantee of future performance.
Q: WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING THIS 12-MONTH PERIOD?
A: During the year under review, technology and more recently telecom sectors
helped the Fund's performance. The Fund's underweight position in consumer
durables and healthcare also added to performance. However, being overweight in
energy and energy service strategies had a negative effect on the Fund's
performance.
Q: WHAT SPECIFIC STOCKS HELPED AND WHICH SPECIFIC STOCKS HURT PERFORMANCE FOR
THIS PERIOD?
A: Stocks that hurt the Fund's performance during this period included Boston
Communications Group (effected by the loss of the Verizon contract) and Valassis
Communications (effected by the loss of large coupon contract). Helping the
Fund's performance were WMS Industries (gambling machine software) and Mastec
(trench digger for buried cable and fiber optics).
Q: WHAT IS YOUR CURRENT OUTLOOK FOR THE NEAR TERM?
A: We feel that the roadmap for the next five to ten years will be similar to
what was experienced between 1975-1982. We feel that the two-year tailwind of
ever-lower interest rates is over. Investment approaches that rely on index
fund, mega cap stocks, and buy-and-hold strategies will have difficulty
outperforming. Contrarian ideas, short-term (12-18 months) rentals, and smaller
size companies look appealing. We remain cautiously optimistic.
SEPTEMBER 2003
THE PRECEDING INFORMATION IS THE OPINION OF FUND MANAGEMENT. PAST PERFORMANCE IS
NO GUARANTEE OF FUTURE RESULTS, AND THERE IS NO GUARANTEE THAT MARKET FORECASTS
DISCUSSED WILL BE REALIZED.
1 THE RUSSELL 2000 INDEX MEASURES THE TOTAL-RETURN PERFORMANCE OF THE 2,000
SMALLEST COMPANIES IN THE RUSSELL 3000 INDEX.
2 THE RUSSELL 2000 VALUE INDEX MEASURES THE TOTAL-RETURN PERFORMANCE OF THOSE
RUSSELL 2000 COMPANIES WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER FORECASTED
GROWTH VALUES.
3 THE S&P 500(REGISTRATION MARK) INDEX MEASURES TOTAL-RETURN STOCK MARKET
PERFORMANCE.
THE INDEXES ARE UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT.
2
Phoenix-Hollister Small Cap Value Fund
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AVERAGE ANNUAL TOTAL RETURNS 1 PERIOD ENDING 8/31/03
- --------------------------------------------------------------------------------
INCEPTION INCEPTION
1 YEAR 5 YEARS TO 8/31/03 DATE
-------- -------- ---------- ------------
Class A Shares at NAV 2 18.76% 16.23% 9.91% 11/20/97
Class A Shares at POP 3 11.93 14.86 8.78 11/20/97
Class B Shares at NAV 2 17.88 15.37 9.09 11/20/97
Class B Shares with CDSC 4 13.88 15.37 9.09 11/20/97
Class C Shares at NAV 2 17.88 15.37 9.09 11/20/97
Class C Shares with CDSC 4 17.88 15.37 9.09 11/20/97
Russell 2000 Value Index 6 23.68 12.32 7.23 11/20/97
S&P 500(R) Index 7 12.09 2.50 2.33 11/20/97
1 Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
2 "NAV" (Net Asset Value) total returns do not include the effect of any sales
charge.
3 "POP" (Public Offering Price) total returns include the effect of the maximum
front-end 5.75% sales charge.
4 CDSC (contingent deferred sales charge) is applied to redemptions of certain
classes of shares that do not have a sales charge applied at the time of
purchase. CDSC charges for B shares decline from 5% to 0% over a five year
period. CDSC charges for C shares are 1% in the first year and 0% thereafter.
5 This chart illustrates POP returns on Class A shares and CDSC returns for
Class B and Class C shares since inception.
6 The Russell 2000 Value Index measures the total return performance of those
Russell 2000 companies with lower price-to-book ratios and lower forecasted
growth values. The index's performance does not reflect sales charges.
7 The S&P 500(R) Index is a measure of stock market total return
performance and is provided for general comparative purposes. The index's
performance does not reflect sales charges.
All returns represent past performance which may not be indicative of future
performance. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
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GROWTH OF $10,000 PERIODS ENDING 8/31
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[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA
POINTS USED IN PRINTED GRAPHIC:
PHOENIX HOLLISTER SMALL CAP VALUE CHART
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PHOENIX HOLLISTER SMALL CAP VALUE CHART
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Phoenix-Hollister Phoenix-Hollister Phoenix-Hollister Russell 2000
Small Cap Value Small Cap Value Small Cap Value Value Stock S&P 500
Fund Class A 5 Fund Class B 5 Fund Class C 5 Index 6 Index 7
11/20/97 $9,425.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00
8/31/98 7,668.16 8,093.43 8,091.01 8,369.65 10,096.90
8/31/99 10,804.60 11,319.80 11,316.40 9,548.56 14,123.60
8/31/00 17,951.50 18,674.30 18,668.70 10,856.40 16,438.30
8/31/01 15,395.40 15,893.80 15,889.00 12,815.00 12,428.70
8/31/02 13,698.20 14,031.40 14,027.20 12,097.40 10,191.70
8/31/03 16,268.10 16,540.20 16,535.30 14,961.80 11,424.10
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
11/20/97 (inception of the Fund) in Class A, Class B and Class C shares. The
total return for Class A shares reflects the maximum sales charge of 5.75% on
the initial investment. The total return for Class B shares reflects the CDSC
charges which decline from 5% to 0% over a five year period. The total return
for Class C shares reflects the CDSC charges which are 1% in the first year and
0% thereafter. Performance assumes dividends and capital gains are reinvested.
SECTOR WEIGHTINGS 8/31 8/31/03
As a percentage of equity holdings
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA
POINTS USED IN PRINTED GRAPHIC:
PHOENIX HOLLISTER SMALL CAP PIE
Information Consumer Exchange
Health Care Technology Discretionary Industrials Financials Energy Traded Funds Other
18% 17% 15% 14% 10% 9% 6% 11%
See Notes to Financial Statements
3
Phoenix-Hollister Small Cap Value Fund
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TEN LARGEST HOLDINGS AT AUGUST 31, 2003 (AS A PERCENTAGE OF TOTAL NET ASSETS)
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1. Circuit City Stores, Inc. 3.4%
2. MasTec, Inc. 3.1%
3. LifePoint Hospitals, Inc. 2.9%
4. King Pharmaceuticals, Inc. 2.6%
5. Sirius Satellite Radio, Inc. 2.5%
6. Dycom Industries, Inc. 2.4%
7. Pharmaceutical Resources, Inc. 2.3%
8. Concurrent Computer Corp. 2.2%
9. iShares MSCI Japan Index Fund 2.1%
10. iShares MSCI Hong Kong Index Fund 2.0%
INVESTMENTS AT AUGUST 31, 2003
SHARES VALUE
--------- ---------
COMMON STOCKS--86.3%
AEROSPACE & DEFENSE--1.4%
DRS Technologies, Inc.(b) .......................... 11,600 $ 301,600
EDO Corp. .......................................... 17,900 367,308
Herley Industries, Inc.(b) ......................... 88,500 1,747,875
------------
2,416,783
------------
AIRLINES--1.3%
Northwest Airlines Corp.(b) ........................ 243,300 2,182,401
APPAREL RETAIL--1.6%
Ross Stores, Inc. .................................. 30,100 1,516,438
Talbots, Inc. (The) ................................ 34,700 1,272,449
------------
2,788,887
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APPAREL, ACCESSORIES & LUXURY GOODS--0.9%
Jones Apparel Group, Inc. .......................... 49,100 1,516,699
BIOTECHNOLOGY--4.1%
Digene Corp.(b) .................................... 70,100 2,664,501
Exact Sciences Corp.(b) ............................ 141,600 2,384,544
Human Genome Sciences, Inc.(b) ..................... 91,700 1,305,808
Pharmacopeia, Inc.(b) .............................. 41,300 505,925
------------
6,860,778
------------
SHARES VALUE
--------- ---------
BROADCASTING & CABLE TV--3.3%
Charter Communications, Inc. Class A(b) ............ 323,100 1,453,950
Sirius Satellite Radio, Inc.(b) .................... 2,531,900 4,202,954
------------
5,656,904
------------
CASINOS & GAMING--0.9%
WMS Industries, Inc.(b) ............................ 62,200 1,489,690
COMMODITY CHEMICALS--0.6%
Lyondell Chemical Co. .............................. 70,800 1,012,440
SHARES VALUE
--------- ---------
COMMUNICATIONS EQUIPMENT--6.4%
ADC Telecommunications, Inc.(b) .................... 822,600 2,089,404
Advanced Fibre Communications, Inc.(b) ............. 42,000 977,340
COMMUNICATIONS EQUIPMENT--(CONTINUED)
Avanex Corp.(b) .................................... 404,500 $ 1,921,375
Brocade Communications Systems, Inc.(b) ............ 262,700 1,481,628
Finisar Corp.(b) ................................... 227,700 489,555
Harris Corp. ....................................... 57,500 1,909,000
JDS Uniphase Corp.(b) .............................. 572,000 1,967,680
------------
10,835,982
------------
COMPUTER & ELECTRONICS RETAIL--3.4%
Circuit City Stores, Inc. .......................... 557,200 5,811,596
COMPUTER HARDWARE--2.8%
Concurrent Computer Corp.(b) ....................... 1,042,000 3,657,420
Palm, Inc.(b) ...................................... 55,900 1,020,175
------------
4,677,595
------------
COMPUTER STORAGE & PERIPHERALS--1.6%
Hutchinson Technology, Inc.(b) ..................... 19,600 619,948
Western Digital Corp.(b) ........................... 179,200 2,059,008
------------
2,678,956
------------
CONSTRUCTION & ENGINEERING--5.6%
Dycom Industries, Inc.(b) .......................... 182,200 4,126,830
MasTec, Inc.(b) .................................... 549,400 5,263,252
------------
9,390,082
------------
CONSTRUCTION, FARM MACHINERY & HEAVY TRUCKS--1.1%
Terex Corp.(b) ..................................... 78,400 1,811,040
DATA PROCESSING & OUTSOURCED SERVICES--0.4%
Euronet Worldwide, Inc.(b) ......................... 73,700 744,370
DIVERSIFIED CHEMICALS--0.9%
Olin Corp. ......................................... 80,000 1,456,800
DIVERSIFIED COMMERCIAL SERVICES--2.1%
Arbitron, Inc.(b) .................................. 30,400 1,124,192
Coinstar, Inc.(b) .................................. 153,500 2,353,155
------------
3,477,347
------------
See Notes to Financial Statements
4
Phoenix-Hollister Small Cap Value Fund
SHARES VALUE
--------- ------------
DRUG RETAIL--1.7%
Rite Aid Corp.(b) .............................. 552,600 $ 2,790,630
ELECTRIC UTILITIES--3.3%
Black Hills Corp. .............................. 73,900 2,395,099
CMS Energy Corp. ............................... 156,900 1,046,523
IDACORP, Inc. .................................. 16,800 407,232
PNM Resources, Inc. ............................ 64,800 1,775,520
------------
5,624,374
------------
FOOTWEAR--1.6%
Skechers U.S.A., Inc. Class A(b) ............... 360,500 2,757,825
HEALTH CARE EQUIPMENT--1.1%
Mentor Corp. ................................... 81,900 1,892,709
HEALTH CARE FACILITIES--4.1%
LifePoint Hospitals, Inc.(b) ................... 171,600 4,943,796
Triad Hospitals, Inc.(b) ....................... 62,300 2,018,520
------------
6,962,316
------------
HOUSEHOLD APPLIANCES--1.5%
Stanley Works (The) ............................ 83,300 2,521,491
INTERNET SOFTWARE & SERVICES--1.8%
Internet Security Systems, Inc.(b) ............. 210,200 2,625,398
Valueclick, Inc.(b) ............................ 40,200 371,850
------------
2,997,248
------------
INVESTMENT BANKING & BROKERAGE--0.3%
Edwards (A.G.), Inc. ........................... 15,700 565,200
IT CONSULTING & OTHER SERVICES--1.8%
MPS Group, Inc.(b) ............................. 80,000 764,000
Sapient Corp.(b) ............................... 704,100 2,217,915
------------
2,981,915
------------
LEISURE PRODUCTS--1.7%
Hasbro, Inc. ................................... 12,900 238,650
Leapfrog Enterprises, Inc.(b) .................. 33,500 1,256,250
Oakley, Inc.(b) ................................ 125,800 1,369,962
------------
2,864,862
------------
OIL & GAS DRILLING--1.9%
Patterson-UTI Energy, Inc.(b) .................. 54,100 1,614,344
Rowan Cos., Inc.(b) ............................ 62,900 1,575,016
------------
3,189,360
------------
OIL & GAS EQUIPMENT & SERVICES--1.8%
Key Energy Services, Inc.(b) ................... 109,900 1,138,564
Maverick Tube Corp.(b) ......................... 33,400 567,466
National-Oilwell, Inc.(b) ...................... 64,900 1,270,742
------------
2,976,772
------------
SHARES VALUE
--------- ------------
OIL & GAS EXPLORATION & PRODUCTION--5.0%
Chesapeake Energy Corp. ........................ 219,400 $ 2,378,296
Cross Timbers Royalty Trust .................... 465 10,382
Newfield Exploration Co.(b) .................... 24,400 958,676
Pioneer Natural Resources Co.(b) ............... 74,800 1,896,928
Quicksilver Resources, Inc.(b) ................. 51,000 1,262,250
Spinnaker Exploration Co.(b) ................... 31,600 702,152
XTO Energy, Inc. ............................... 62,800 1,318,172
------------
8,526,856
------------
PHARMACEUTICALS--6.8%
Atrix Laboratories, Inc.(b) .................... 22,500 679,500
ICN Pharmaceuticals, Inc. ...................... 28,800 504,000
King Pharmaceuticals, Inc.(b) .................. 308,600 4,335,830
Penwest Pharmaceuticals Co.(b) ................. 94,900 2,076,412
Pharmaceutical Resources, Inc.(b) .............. 69,300 3,876,642
------------
11,472,384
------------
PROPERTY & CASUALTY INSURANCE--1.9%
Mercury General Corp. .......................... 74,200 3,241,056
REGIONAL BANKS--2.1%
First Charter Corp. ............................ 87,500 1,616,125
Seacoast Banking Corp. of Florida .............. 35,390 620,740
TCF Financial Corp. ............................ 12,200 561,078
Texas Regional Bancshares, Inc. ................ 22,000 741,400
------------
3,539,343
------------
REINSURANCE--0.7%
Scottish Annuity & Life Holdings Ltd. .......... 49,300 1,132,914
REITS--1.5%
iStar Financial, Inc. .......................... 68,600 2,514,876
SEMICONDUCTORS--1.3%
GlobespanVirata, Inc.(b) ....................... 283,400 2,156,674
SPECIALTY CHEMICALS--0.8%
RPM International, Inc. ........................ 102,800 1,402,192
SYSTEMS SOFTWARE--0.8%
Sybase, Inc.(b) ................................ 78,100 1,320,671
THRIFTS & MORTGAGE FINANCE--1.5%
Accredited Home Lenders Holding Co.(b) ......... 23,400 376,506
W Holding Co., Inc. ............................ 123,600 2,180,304
------------
2,556,810
------------
TRUCKING--2.9%
Dollar Thrifty Automotive Group, Inc.(b) ...... 123,600 2,935,500
Yellow Corp.(b) ................................ 73,200 2,052,528
------------
4,988,028
------------
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TOTAL COMMON STOCKS
(IDENTIFIED COST $121,914,955) 145,784,856
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See Notes to Financial Statements
5
Phoenix-Hollister Small Cap Value Fund
SHARES VALUE
--------- ------------
FOREIGN COMMON STOCKS--4.5%
COMMUNICATIONS EQUIPMENT--0.2%
Bookham Technology plc ADR (United
Kingdom)(b) ............................. 306,500 $ 407,645
INSURANCE BROKERS--0.8%
Platinum Underwriters Holdings Ltd.
(Bermuda) ............................... 51,700 1,403,655
PHARMACEUTICALS--1.7%
Shire Pharmaceuticals Group plc ADR
(United Kingdom)(b) ..................... 121,800 2,831,850
REINSURANCE--1.8%
Everest Re Group Ltd. (Barbados) ......... 24,800 1,817,840
Montpelier Re Holdings Ltd. (Bermuda)(b) . 39,500 1,211,070
------------
3,028,910
------------
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TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $7,076,135) 7,672,060
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EXCHANGE TRADED FUNDS--5.6%
iShares MSCI Hong Kong Index Fund ........ 374,800 3,395,688
iShares MSCI Japan Index Fund(b) ......... 432,700 3,591,410
iShares MSCI Taiwan Index Fund(b) ........ 217,900 2,425,227
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TOTAL EXCHANGE TRADED FUNDS
(IDENTIFIED COST $8,175,368) 9,412,325
- -----------------------------------------------------------------------------
TOTAL LONG TERM INVESTMENTS--96.4%
(IDENTIFIED COST $137,166,458) 162,869,241
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STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- ------ ------------
SHORT-TERM OBLIGATIONS--4.1%
FEDERAL AGENCY SECURITIES--1.0%
FHLB 1.03%, 9/24/03 ...................... $1,645 $ 1,644,241
COMMERCIAL PAPER--3.1%
UBS Finance Delware LLC 1.09%, 9/2/03 .... A-1+ 2,055 2,054,813
ABSC Capital Corp. 1.10%, 9/4/03 ......... A-1 1,275 1,274,805
ABSC Capital Corp. 1.08%, 9/25/03 ........ A-1 2,030 2,028,417
------------
5,358,035
------------
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TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $7,002,276) 7,002,276
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS--100.5%
(IDENTIFIED COST $144,168,734) 169,871,517(a)
Other assets and liabilities, net--(0.5)% (833,342)
------------
NET ASSETS--100.0% $169,038,175
============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $24,976,931 and gross
depreciation of $1,985,904 for federal income tax purposes. At August 31,
2003, the aggregate cost of securities for federal income tax purposes was
$146,880,490.
(b) Non-income producing.
See Notes to Financial Statements
6
Phoenix-Hollister Small Cap Value Fund
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 2003
ASSETS
Investment securities at value
(Identified cost $144,168,734) $169,871,517
Receivables
Investment securities sold 2,007,262
Fund shares sold 312,486
Dividends and interest 110,710
Receivable from adviser 45
Prepaid expenses 4,184
------------
Total assets 172,306,204
------------
LIABILITIES
Cash overdraft 3,804
Payables
Investment securities purchased 2,716,381
Fund shares repurchased 194,770
Transfer agent fee 94,154
Investment advisory fee 90,258
Distribution and service fees 90,153
Financial agent fee 12,119
Trustees' fee 2,276
Accrued expenses 64,114
------------
Total liabilities 3,268,029
------------
NET ASSETS $169,038,175
============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $179,151,155
Accumulated net realized loss (35,815,763)
Net unrealized appreciation 25,702,783
--------------
NET ASSETS $169,038,175
==============
CLASS A
Shares of beneficial interest outstanding, no par value,
unlimited authorization (Net Assets $76,782,705) 5,723,406
Net asset value per share $13.42
Offering price per share $13.42/(1-5.75%) $14.24
CLASS B
Shares of beneficial interest outstanding, no par value,
unlimited authorization (Net Assets $40,696,246) 3,181,889
Net asset value and offering price per share $12.79
CLASS C
Shares of beneficial interest outstanding, no par value,
unlimited authorization (Net Assets $51,559,224) 4,031,754
Net asset value and offering price per share $12.79
STATEMENT OF OPERATIONS
YEAR ENDED AUGUST 31, 2003
INVESTMENT INCOME
Dividends $ 2,113,493
Interest 61,042
Foreign taxes withheld (6,024)
------------
Total investment income 2,168,511
------------
EXPENSES
Investment advisory fee 1,358,782
Service fees, Class A 175,848
Distribution and service fees, Class B 355,780
Distribution and service fees, Class C 450,584
Financial agent fee 142,923
Transfer agent 509,877
Printing 57,518
Custodian 35,414
Professional 33,865
Trustees 29,296
Registration 24,732
Miscellaneous 20,210
------------
Total expenses 3,194,829
Less expenses borne by investment adviser (474,776)
Custodian fees paid indirectly (1,619)
------------
Net expenses 2,718,434
------------
NET INVESTMENT LOSS (549,923)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (581,048)
Net change in unrealized appreciation (depreciation) on
investments 24,331,903
------------
NET GAIN ON INVESTMENTS 23,750,855
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $23,200,932
============
See Notes to Financial Statements
7
Phoenix-Hollister Small Cap Value Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
8/31/03 8/31/02
------------ --------------
FROM OPERATIONS
Net investment income (loss) $ (549,923) $ (893,570)
Net realized gain (loss) (581,048) (11,568,534)
Net change in unrealized appreciation (depreciation) 24,331,903 (10,238,352)
------------ --------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 23,200,932 (22,700,456)
------------ --------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized short-term gains, Class A -- (140,168)
Net realized short-term gains, Class B -- (67,777)
Net realized short-term gains, Class C -- (76,536)
------------ --------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS
TO SHAREHOLDERS -- (284,481)
------------ --------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (1,907,326 and 2,995,398 shares, respectively) 21,435,568 37,470,841
Net asset value of shares issued from reinvestment of distributions
(0 and 10,054 shares, respectively) -- 125,986
Cost of shares repurchased (3,531,940 and 2,586,657 shares, respectively) (37,879,871) (31,993,060)
------------ --------------
Total (16,444,303) 5,603,767
------------ --------------
CLASS B
Proceeds from sales of shares (360,619 and 1,175,378 shares, respectively) 3,733,780 14,180,441
Net asset value of shares issued from reinvestment of
distributions (0 and 5,750 shares, respectively) -- 69,074
Cost of shares repurchased (900,192 and 729,750 shares, respectively) (9,055,153) (8,619,889)
------------ --------------
Total (5,321,373) 5,629,626
------------ --------------
CLASS C
Proceeds from sales of shares (588,971 and 1,647,588 shares, respectively) 6,011,638 19,922,904
Net asset value of shares issued from reinvestment of
distributions (0 and 5,923 shares, respectively) -- 71,602
Cost of shares repurchased (1,092,681 and 809,589 shares, respectively) (10,996,219) (9,549,583)
------------ --------------
Total (4,984,581) 10,444,923
------------ --------------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (26,750,257) 21,678,316
------------ --------------
NET INCREASE (DECREASE) IN NET ASSETS (3,549,325) (1,306,621)
NET ASSETS
Beginning of period 172,587,500 173,894,121
------------ --------------
END OF PERIOD [INCLUDING UNDISTRIBUTED NET
INVESTMENT INCOME OF $0 AND $0, RESPECTIVELY] $169,038,175 $172,587,500
============ ==============
See Notes to Financial Statements
8
Phoenix-Hollister Small Cap Value Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS A
---------------------------------------------------------------
YEAR ENDED AUGUST 31,
---------------------------------------------------------------
2003 2002 2001 2000 1999
Net asset value, beginning of period $11.30 $12.72 $17.90 $11.41 $ 8.11
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) --(6) (0.01) (0.05) (0.08) 0.01
Net realized and unrealized gain (loss) 2.12 (1.39) (2.34) 7.38 3.31
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 2.12 (1.40) (2.39) 7.30 3.32
------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- -- --
Distributions from net realized gains -- (0.02) (2.79) (0.81) (0.02)
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS -- (0.02) (2.79) (0.81) (0.02)
------- ------- ------- ------- -------
Change in net asset value 2.12 (1.42) (5.18) 6.49 3.30
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $13.42 $11.30 $12.72 $17.90 $11.41
======= ======= ======= ======= =======
Total return(2) 18.76% (11.02)% (14.24)% 66.15 % 40.90%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $76,783 $83,005 $88,174 $79,254 $26,926
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(3) 1.40%(5) 1.40 %(5) 1.40 %(5) 1.40 %(5) 1.40%
Net investment income (loss) 0.04% (0.11)% (0.39)% (0.45)% 0.15%
Portfolio turnover 241% 123 % 229 % 191 % 203%
CLASS B
---------------------------------------------------------------
YEAR ENDED AUGUST 31,
---------------------------------------------------------------
2003 2002 2001 2000 1999
Net asset value, beginning of period $ 10.85 $ 12.31 $ 17.54 $11.27 $ 8.07
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) (0.08) (0.10) (0.16) (0.19) (0.06)
Net realized and unrealized gain (loss) 2.02 (1.34) (2.28) 7.27 3.28
------- ------- ------- ------- ------
TOTAL FROM INVESTMENT OPERATIONS 1.94 (1.44) (2.44) 7.08 3.22
------- ------- ------- ------- ------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- -- --
Distributions from net realized gains -- (0.02) (2.79) (0.81) (0.02)
------- ------- ------- ------- ------
TOTAL DISTRIBUTIONS -- (0.02) (2.79) (0.81) (0.02)
------- ------- ------- ------- ------
Change in net asset value 1.94 (1.46) (5.23) 6.27 3.20
------- ------- ------- ------- ------
NET ASSET VALUE, END OF PERIOD $12.79 $10.85 $12.31 $17.54 $11.27
======= ======= ======= ======= ------
Total return(2) 17.88 % (11.72)% (14.89)% 64.97 % 39.86 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $40,696 $40,382 $40,270 $26,625 $9,494
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 2.15 %(5) 2.15 %(5) 2.15 %(5) 2.15 %(5) 2.15 %
Net investment income (loss) (0.71)% (0.86)% (1.14)% (1.20)% (0.60)%
Portfolio turnover 241 % 123 % 229 % 191 % 203 %
(1) Computed using average shares outstanding.
(2) Maximum sales charges are not reflected in the total return calculation.
(3) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.71%,
1.64%, 1.58%, 1.67% and 1.87% for the periods ended August 31, 2003, 2002,
2001, 2000 and 1999, respectively.
(4) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 2.46%,
2.39%, 2.33%, 2.42% and 2.62% for the periods ended August 31, 2003, 2002,
2001, 2000 and 1999, respectively.
(5) The ratio of operating expenses to average net assets excludes the effect of
expense offsets for custodian fees; if expense offsets were included, the
ratio would not significantly differ.
(6) Amount is less than $0.01.
See Notes to Financial Statements
9
Phoenix-Hollister Small Cap Value Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS C
---------------------------------------------------------------
YEAR ENDED AUGUST 31,
---------------------------------------------------------------
2003 2002 2001 2000 1999
2003 2002 2001 2000 1999
Net asset value, beginning of period $10.85 $12.31 $17.54 $11.27 $ 8.07
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) (0.08) (0.10) (0.16) (0.19) (0.06)
Net realized and unrealized gain (loss) 2.02 (1.34) (2.28) 7.27 3.28
------- ------- ------- ------ ------
TOTAL FROM INVESTMENT OPERATIONS 1.94 (1.44) (2.44) 7.08 3.22
------- ------- ------- ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- -- --
Distributions from net realized gains -- (0.02) (2.79) (0.81) (0.02)
------- ------- ------- ------ ------
TOTAL DISTRIBUTIONS -- (0.02) (2.79) (0.81) (0.02)
------- ------- ------- ------ ------
Change in net asset value 1.94 (1.46) (5.23) 6.27 3.20
------- ------- ------- ------ ------
NET ASSET VALUE, END OF PERIOD $12.79 $10.85 $12.31 $17.54 $11.27
======= ======= ======= ====== ------
Total return(2) 17.88 % (11.72)% (14.89)% 64.97 % 39.86 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $51,559 $49,201 $45,450 $28,046 $6,465
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(3) 2.15 %(4) 2.15 %(4) 2.15 %(4) 2.15 %(4) 2.15 %
Net investment income (loss) (0.72)% (0.86)% (1.14)% (1.20)% (0.60)%
Portfolio turnover 241 % 123 % 229 % 191 % 203 %
(1) Computed using average shares outstanding.
(2) Maximum sales charges are not reflected in the total return calculation.
(3) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 2.46%,
2.39%, 2.33%, 2.42% and 2.62% for the periods ended August 31, 2003, 2002,
2001, 2000 and 1999, respectively.
(4) The ratio of operating expenses to average net assets excludes the effect of
expense offsets for custodian fees; if expense offsets were included, the
ratio would not significantly differ.
See Notes to Financial Statements
10
PHOENIX-HOLLISTER VALUE EQUITY FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Phoenix-Hollister Value Equity Fund is designed for long-term investors
seeking capital appreciation by investing in a diversified portfolio of
attractively valued stocks with the potential for price appreciation.
Q: HOW DID THE FUND PERFORM OVER THE PAST 12 MONTHS ENDED AUGUST 31, 2003?
A: For the fiscal year ended August 31, 2003, Class A shares rose 7.31%, Class B
shares rose 6.44%, and Class C shares were up 6.47%. For the same period, the
broad-based S&P 500(R) Index 1 rose 12.09% and the Russell 1000 Value Index 2
was up 11.63%. All performance figures assume reinvestment of distributions and
exclude the effect of sales charges. Past performance is not a guarantee of
future performance.
Q: WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING THIS 12-MONTH PERIOD?
A: During the year under review, technology and more recently telecom sectors
helped the Fund's performance. The Fund's underweight position in consumer
durables and healthcare also added to performance. However, being overweight in
energy and energy service strategies had a negative effect on the Fund's
performance.
Q: WHAT SPECIFIC STOCKS HELPED AND WHICH SPECIFIC STOCKS HURT PERFORMANCE FOR
THIS PERIOD?
A: Our best performing holdings (based on their weighting in the portfolio) were
AT&T and Merrill Lynch. Our most disappointing holdings (based on their
weighting in the portfolio) were UnumProvident and Schering-Plough.
Q: WHAT IS YOUR CURRENT OUTLOOK FOR THE NEAR TERM?
A: We feel that the roadmap for the next five to ten years will be similar to
what was experienced between 1975-1982. We feel that the two-year tailwind of
ever-lower interest rates is over. Investment approaches that rely on index
fund, mega cap stocks, and buy-and-hold strategies will have difficulty
outperforming. Contrarian ideas, short-term (12-18 months) rentals, and smaller
size companies look appealing. We remain cautiously optimistic.
SEPTEMBER 2003
THE PRECEDING INFORMATION IS THE OPINION OF FUND MANAGEMENT. PAST PERFORMANCE IS
NO GUARANTEE OF FUTURE RESULTS, AND THERE IS NO GUARANTEE THAT MARKET FORECASTS
DISCUSSED WILL BE REALIZED.
1 THE S&P 500(R) INDEX MEASURES TOTAL-RETURN STOCK MARKET PERFORMANCE.
2 THE RUSSELL 1000 VALUE INDEX MEASURES THE TOTAL-RETURN PERFORMANCE OF THOSE
RUSSELL 1000 COMPANIES WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER FORECASTED
GROWTH VALUES.
THE INDEXES ARE UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT.
11
Phoenix-Hollister Value Equity Fund
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS 1 PERIOD ENDING 8/31/03
- --------------------------------------------------------------------------------
INCEPTION INCEPTION
1 YEAR 5 YEARS TO 8/31/03 DATE
-------- -------- ---------- ------------
Class A Shares at NAV 2 7.31% 7.50% 4.45% 11/5/97
Class A Shares at POP 3 1.14 6.23 3.39 11/5/97
Class B Shares at NAV 2 6.44 6.70 3.65 11/5/97
Class B Shares with CDSC 4 2.44 6.70 3.65 11/5/97
Class C Shares at NAV 2 6.47 6.70 3.67 11/5/97
Class C Shares with CDSC 4 6.47 6.70 3.67 11/5/97
Russell 1000 Value Index 6 11.63 5.37 4.30 11/5/97
S&P 500(R) Index 7 12.09 2.50 2.64 11/5/97
1 Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
2 "NAV" (Net Asset Value) total returns do not include the effect of any sales
charge.
3 "POP" (Public Offering Price) total returns include the effect of the maximum
front-end 5.75% sales charge.
4 CDSC (contingent deferred sales charge) is applied to redemptions of certain
classes of shares that do not have a sales charge applied at the time of
purchase. CDSC charges for B shares decline from 5% to 0% over a five year
period. CDSC charges for C shares are 1% in the first year and 0% thereafter.
5 This chart illustrates POP returns on Class A shares and CDSC returns for
Class B and Class C shares since inception.
6 The Russell 1000 Value Index measures the total return performance of those
Russell 1000 companies with lower price-to-book ratios and lower forecasted
growth values. The index's performance does not reflect sales charges.
7 The S&P 500(R) Index is a measure of stock market total return performance and
is provided for general comparative purposes. The index's performance does not
reflect sales charges.
All returns represent past performance which may not be indicative of future
performance. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their original cost.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 PERIODS ENDING 8/31
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
PHOENIX HOLLISTER VALUE EQUITY CHART
Phoenix-Hollister Phoenix-Hollister Phoenix-Hollister
Value Equity Value Equity Value Equity Russell 1000 S&P 500
Fund Class A 5 Fund Class B 5 Fund Class C 5 Value Index 6 Index 7
11/4/97 $9,425.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00
8/31/98 8,455.82 8,907.98 8,914.38 9,831.19 10,286.26
8/31/99 11,490.70 12,030.50 12,026.70 12,788.44 14,388.39
8/31/00 14,261.30 14,807.60 14,812.90 13,319.69 16,746.49
8/31/01 13,304.50 13,708.90 13,714.70 13,170.79 12,661.69
8/31/02 11,312.50 11,574.60 11,581.20 11,440.82 10,382.76
8/31/03 12,139.80 12,320.30 12,330.00 12,771.16 11,638.26
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
11/5/97 (inception of the Fund) in Class A, Class B and Class C shares. The
total return for Class A shares reflects the maximum sales charge of 5.75% on
the initial investment. The total return for Class B shares reflects the CDSC
charges which decline from 5% to 0% over a five year period. The total return
for Class C shares reflects the CDSC charges which are 1% in the first year and
0% thereafter. Performance assumes dividends and capital gains are reinvested.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS 8/31/03
- --------------------------------------------------------------------------------
As a percentage of equity holdings
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
PHOENIX HOLLISTER VALUE EQUITY PIE
Consumer Health Telecommunication
Financials Discretionary Care Services Energy
25% 18% 15% 8% 8%
Information
Industrials Technology Other
8% 6% 12%
See Notes to Financial Statements
12
Phoenix-Hollister Value Equity Fund
- --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS AT AUGUST 31, 2003 (AS A PERCENTAGE OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
1. Interpublic Group of Cos., Inc. (The) 4.1%
2. AOL Time Warner, Inc. 3.8%
3. AT&T Corp. 3.7%
4. UnumProvident Corp. 3.3%
5. JDS Uniphase Corp. 3.2%
6. Sony Corp. 3.0%
7. Bank One Corp. 2.9%
8. Limited Brands 2.7%
9. HCA, Inc. 2.7%
10. PMI Group, Inc. (The) 2.6%
INVESTMENTS AT AUGUST 31, 2003
SHARES VALUE
------- ------------
COMMON STOCKS--94.8%
ADVERTISING--4.1%
Interpublic Group of Cos., Inc. (The) ............. 184,700 $ 2,798,205
AEROSPACE & DEFENSE--2.6%
Honeywell International, Inc. ..................... 28,300 820,417
Lockheed Martin Corp. ............................. 18,500 947,755
------------
1,768,172
------------
ALUMINUM--1.0%
Alcoa, Inc. ....................................... 24,100 688,296
APPAREL RETAIL--2.7%
Limited Brands .................................... 110,300 1,870,688
ASSET MANAGEMENT & CUSTODY BANKS--0.9%
Bank of New York Co., Inc. (The) .................. 20,600 606,052
BIOTECHNOLOGY--2.0%
Gilead Sciences, Inc.(b) .......................... 20,300 1,354,010
BROADCASTING & CABLE TV--2.0%
EchoStar Communications Corp. Class A(b) .......... 37,300 1,376,370
BUILDING PRODUCTS--0.5%
American Standard Cos., Inc.(b) ................... 4,300 344,817
COMMUNICATIONS EQUIPMENT--3.2%
JDS Uniphase Corp.(b) ............................. 642,000 2,208,480
COMPUTER & ELECTRONICS RETAIL--2.6%
Circuit City Stores, Inc. ......................... 169,600 1,768,928
CONSUMER FINANCE--2.3%
MBNA Corp. ........................................ 68,000 1,587,120
DIVERSIFIED BANKS--5.7%
Bank of America Corp. ............................. 11,100 879,675
Bank One Corp. .................................... 50,600 1,997,182
FleetBoston Financial Corp. ....................... 13,000 384,670
U.S. Bancorp ...................................... 27,900 666,810
------------
3,928,337
------------
SHARES VALUE
------- ------------
DIVERSIFIED CAPITAL MARKETS--1.2%
J.P. Morgan Chase & Co. ........................... 24,800 $ 848,656
DIVERSIFIED CHEMICALS--1.4%
Du Pont (E.I.) de Nemours & Co. ................... 21,300 952,962
DIVERSIFIED COMMERCIAL SERVICES--2.4%
Cendant Corp.(b) .................................. 94,100 1,691,918
ELECTRIC UTILITIES--0.9%
Consolidated Edison, Inc. ......................... 16,200 640,386
GAS UTILITIES--1.3%
NiSource, Inc. .................................... 47,100 910,914
HEALTH CARE FACILITIES--4.5%
HCA, Inc. ......................................... 49,200 1,869,108
Tenet Healthcare Corp.(b) ......................... 77,900 1,250,295
------------
3,119,403
------------
HEALTH CARE SERVICES--2.6%
Caremark Rx, Inc.(b) .............................. 33,000 829,290
IMS Health, Inc. .................................. 51,100 994,917
------------
1,824,207
------------
HYPERMARKETS & SUPER CENTERS--2.3%
Costco Wholesale Corp.(b) ......................... 50,100 1,607,709
INDUSTRIAL CONGLOMERATES--1.0%
3M Co. ............................................ 4,700 669,609
INDUSTRIAL MACHINERY--1.4%
Illinois Tool Works, Inc. ......................... 13,700 990,373
INTEGRATED OIL & GAS--1.6%
ConocoPhillips .................................... 19,700 1,100,048
INTEGRATED TELECOMMUNICATION SERVICES--6.0%
AT&T Corp. ........................................ 113,300 2,526,590
Qwest Communications International, Inc.(b) ....... 366,200 1,629,590
------------
4,156,180
------------
See Notes to Financial Statements
13
PhoenixHollister Value Equity Fund
SHARES VALUE
------- ------------
INVESTMENT BANKING & BROKERAGE--2.1%
Goldman Sachs Group, Inc. (The) .................. 4,600 $ 407,054
Merrill Lynch & Co., Inc. ........................ 19,500 1,048,710
------------
1,455,764
------------
LIFE & HEALTH INSURANCE--5.6%
AFLAC, Inc. ...................................... 50,600 1,619,706
UnumProvident Corp. .............................. 161,800 2,281,380
------------
3,901,086
------------
MANAGED HEALTH CARE--1.4%
CIGNA Corp. ...................................... 20,300 967,904
MOVIES & ENTERTAINMENT--3.8%
AOL Time Warner, Inc.(b) ......................... 162,300 2,655,228
MULTI-UTILITIES & UNREGULATED POWER--0.9%
El Paso Corp. .................................... 84,700 621,698
OIL & GAS EQUIPMENT & SERVICES--1.0%
Halliburton Co. .................................. 29,000 701,220
OIL & GAS EXPLORATION & PRODUCTION--5.5%
Anadarko Petroleum Corp. ......................... 26,900 1,170,150
Apache Corp. ..................................... 6,000 413,880
EOG Resources, Inc. .............................. 32,100 1,361,040
Noble Energy, Inc. ............................... 20,700 819,513
------------
3,764,583
------------
OTHER DIVERSIFIED FINANCIAL SERVICES--0.7%
Citigroup, Inc. .................................. 10,700 463,845
PACKAGED FOODS AND MEATS--1.1%
Kraft Foods, Inc. Class A ........................ 25,600 760,320
PHARMACEUTICALS--4.1%
King Pharmaceuticals, Inc.(b) .................... 111,000 1,559,550
Schering-Plough Corp. ............................ 83,100 1,262,289
------------
2,821,839
------------
REGIONAL BANKS--2.5%
KeyCorp .......................................... 63,700 1,734,551
REITS--1.7%
Equity Office Properties Trust ................... 41,300 1,148,966
SEMICONDUCTORS--1.0%
Micron Technology, Inc.(b) ....................... 49,600 712,256
SOFT DRINKS--2.2%
Pepsi Bottling Group, Inc. (The) ................. 63,200 1,524,384
SHARES VALUE
------- ------------
THRIFTS & MORTGAGE FINANCE--2.6%
PMI Group, Inc. (The) ............................ 50,000 $ 1,769,000
WIRELESS TELECOMMUNICATION SERVICES--2.4%
Nextel Communications, Inc. Class A(b) ........... 86,100 1,660,008
- -----------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $59,018,184) 65,474,492
- -----------------------------------------------------------------------------
FOREIGN COMMON STOCKS--4.9%
COMMUNICATIONS EQUIPMENT--1.9%
Nokia Oyj ADR (Finland) .......................... 81,400 1,326,006
CONSUMER ELECTRONICS--3.0%
Sony Corp. (Japan) ............................... 63,000 2,075,850
- -----------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $3,062,095) 3,401,856
- -----------------------------------------------------------------------------
TOTAL LONG TERM INVESTMENTS--99.7%
(IDENTIFIED COST $62,080,279) 68,876,348
- -----------------------------------------------------------------------------
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000)
----------- -----
SHORT-TERM OBLIGATIONS--0.5%
COMMERCIAL PAPER--0.5%
CXC LLC 1.10%, 9/2/03 ..................... A-1+ $355 354,990
- -----------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $354,990) 354,990
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS--100.2%
(IDENTIFIED COST $62,435,269) 69,231,338(a)
Other assets and liabilities, net--(0.2)% (150,478)
------------
NET ASSETS--100.0% $69,080,860
============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $5,765,261 and gross
depreciation of $939,115 for federal income tax purposes. At August 31,
2003, the aggregate cost of securities for federal income tax purposes was
$64,405,192.
(b) Non-income producing.
See Notes to Financial Statements
14
Phoenix-Hollister Value Equity Fund
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 2003
ASSETS
Investment securities at value
(Identified cost $62,435,269) $69,231,338
Cash 506
Receivables
Dividends and interest 143,167
Fund shares sold 66,864
Prepaid expenses 1,709
-----------
Total assets 69,443,584
-----------
LIABILITIES
Payables
Fund shares repurchased 211,609
Transfer agent fee 37,302
Distribution and service fees 34,074
Professional fee 31,196
Investment advisory fee 14,334
Financial agent fee 6,824
Trustees' fee 2,276
Payable to adviser 152
Accrued expenses 24,957
-----------
Total liabilities 362,724
-----------
NET ASSETS $69,080,860
===========
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $87,079,479
Undistributed net investment income 181,756
Accumulated net realized loss (24,976,444)
Net unrealized appreciation 6,796,069
-----------
NET ASSETS $69,080,860
===========
CLASS A
Shares of beneficial interest outstanding, no par value,
unlimited authorization (Net Assets $37,309,867) 3,293,765
Net asset value per share $11.33
Offering price per share $11.33/(1-5.75%) $12.02
CLASS B
Shares of beneficial interest outstanding, no par value,
unlimited authorization (Net Assets $16,363,350) 1,488,764
Net asset value and offering price per share $10.99
CLASS C
Shares of beneficial interest outstanding, no par value,
unlimited authorization (Net Assets $15,407,643) 1,400,858
Net asset value and offering price per share $11.00
STATEMENT OF OPERATIONS
YEAR ENDED AUGUST 31, 2003
INVESTMENT INCOME
Dividends $1,589,070
Interest 32,860
Foreign taxes withheld (4,505)
----------
Total investment income 1,617,425
----------
EXPENSES
Investment advisory fee 521,890
Service fees, Class A 90,323
Distribution and service fees, Class B 175,212
Distribution and service fees, Class C 159,351
Financial agent fee 86,509
Transfer agent 195,733
Professional 37,748
Custodian 31,411
Trustees 29,296
Printing 26,332
Registration 16,307
Miscellaneous 14,879
----------
Total expenses 1,384,991
Less expenses borne by investment adviser (264,229)
Custodian fees paid indirectly (48)
----------
Net expenses 1,120,714
----------
NET INVESTMENT INCOME 496,711
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (6,218,723)
Net change in unrealized appreciation (depreciation) on
investments 7,942,711
----------
NET GAIN ON INVESTMENTS 1,723,988
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,220,699
==========
See Notes to Financial Statements
15
Phoenix-Hollister Value Equity Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
8/31/03 8/31/02
------------ -------------
FROM OPERATIONS
Net investment income (loss) $ 496,711 $ 283,943
Net realized gain (loss) (6,218,723) (18,027,281)
Net change in unrealized
appreciation (depreciation) 7,942,711 137,398
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 2,220,699 (17,605,940)
------------ -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (283,597) (384,523)
Net investment income, Class B (39,301) --
Net investment income, Class C (42,475) --
Net realized long-term gains, Class A -- (725,832)
Net realized long-term gains, Class B -- (457,963)
Net realized long-term gains, Class C -- (296,217)
------------ -------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (365,373) (1,864,535)
------------ -------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (891,000 and
1,198,840 shares, respectively) 8,885,100 14,107,742
Net asset value of shares issued from
reinvestment of distributions
(24,886 and 90,238 shares, respectively) 267,903 1,070,740
Cost of shares repurchased (1,758,338
and 1,719,723 shares, respectively) (17,230,551) (20,059,729)
------------ -------------
Total (8,077,548) (4,881,247)
------------ -------------
CLASS B
Proceeds from sales of shares (189,176 and
442,182 shares, respectively) 1,850,017 5,058,231
Net asset value of shares issued from
reinvestment of distributions
(2,789 and 37,057 shares, respectively) 29,746 430,227
Cost of shares repurchased (1,494,049 and
640,922 shares, respectively) (14,264,891) (7,135,754)
------------ -------------
Total (12,385,128) (1,647,296)
------------ -------------
CLASS C
Proceeds from sales of shares (170,326 and
370,401 shares, respectively) 1,652,857 4,248,848
Net asset value of shares issued from
reinvestment of distributions (3,218 and
22,395 shares, respectively) 34,338 260,229
Cost of shares repurchased (629,913 and
419,189 shares, respectively) (6,096,181) (4,751,269)
------------ -------------
Total (4,408,986) (242,192)
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (24,871,662) (6,770,735)
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS (23,016,336) (26,241,210)
NET ASSETS
Beginning of period 92,097,196 118,338,406
------------ -------------
END OF PERIOD [INCLUDING
UNDISTRIBUTED NET INVESTMENT
INCOME OF $181,756 AND $50,421,
RESPECTIVELY] $ 69,080,860 $ 92,097,196
============ =============
See Notes to Financial Statements
16
Phoenix-Hollister Value Equity Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS A
---------------------------------------------------------------------------
YEAR ENDED AUGUST 31,
---------------------------------------------------------------------------
2003 2002 2001 2000 1999
Net asset value, beginning of period $10.64 $12.76 $15.03 $12.11 $ 8.94
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) 0.11 0.08 0.08 0.03 0.02
Net realized and unrealized gain (loss) 0.66 (1.97) (0.93) 2.89 3.20
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.77 (1.89) (0.85) 2.92 3.22
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.08) (0.08) -- -- (0.05)
Distributions from net realized gains -- (0.15) (1.42) -- --
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (0.08) (0.23) (1.42) -- (0.05)
------ ------ ------ ------ ------
Change in net asset value 0.69 (2.12) (2.27) 2.92 3.17
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $11.33 $10.64 $12.76 $15.03 $12.11
====== ====== ====== ====== ======
Total return(2) 7.31% (14.97)% (6.71)% 24.11% 35.89%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $37,310 $43,993 $58,260 $37,977 $26,974
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(3) 1.25%(5) 1.25 %(5) 1.25 %(5) 1.25%(5) 1.25%
Net investment income 1.06% 0.64 % 0.53 % 0.20% 0.14%
Portfolio turnover 349% 166 % 249 % 193% 192%
CLASS B
-----------------------------------------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------------------------------------
2003 2002 2001 2000 1999
Net asset value, beginning of period $10.35 $12.42 $14.77 $12.00 $ 8.89
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) 0.04 (0.01) (0.03) (0.08) (0.07)
Net realized and unrealized gain (loss) 0.63 (1.91) (0.90) 2.85 3.19
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.67 (1.92) (0.93) 2.77 3.12
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.03) -- -- -- (0.01)
Distributions from net realized gains -- (0.15) (1.42) -- --
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (0.03) (0.15) (1.42) -- (0.01)
------ ------ ------ ------ ------
Change in net asset value 0.64 (2.07) (2.35) 2.77 3.11
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $10.99 $10.35 $12.42 $14.77 $12.00
====== ====== ====== ====== ======
Total return(2) 6.44 % (15.57)% (7.42)% 23.08 % 35.05 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $16,363 $28,873 $36,669 $26,471 $24,709
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 2.00%(5) 2.00 %(5) 2.00 %(5) 2.00 %(5) 2.00 %
Net investment income (loss) 0.37 % (0.11)% (0.22)% (0.57)% (0.62)%
Portfolio turnover 349 % 166 % 249 % 193 % 192 %
<FN>
(1) Computed using average shares outstanding.
(2) Maximum sales charges are not reflected in the total return calculation.
(3) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.63%,
1.49%, 1.38%, 1.47% and 1.57% for the periods ended August 31, 2003, 2002,
2001, 2000 and 1999, respectively.
(4) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 2.38%,
2.24%, 2.13%, 2.22% and 2.32% for the periods ended August 31, 2003, 2002,
2001, 2000 and 1999, respectively.
(5) The ratio of operating expenses to average net assets excludes the effect
of expense offsets for custodian fees; if expense offsets were included, the
ratio would not significantly differ.
</FN>
See Notes to Financial Statements
17
Phoenix-Hollister Value Equity Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS C
----------------------------------------------------------------------
YEAR ENDED AUGUST 31,
----------------------------------------------------------------------
2003 2002 2001 2000 1999
Net asset value, beginning of period $10.35 $12.43 $14.78 $12.00 $ 8.89
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) 0.03 (0.01) (0.03) (0.07) (0.07)
Net realized and unrealized gain (loss) 0.65 (1.92) (0.90) 2.85 3.19
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.68 (1.93) (0.93) 2.78 3.12
------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.03) -- -- -- (0.01)
Distributions from net realized gains -- (0.15) (1.42) -- --
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS (0.03) (0.15) (1.42) -- (0.01)
------- ------- ------- ------- -------
Change in net asset value 0.65 (2.08) (2.35) 2.78 3.11
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $11.00 $10.35 $12.43 $14.78 $12.00
======= ------- ------- ------- -------
Total return(2) 6.47% (15.56)% (7.41)% 23.17 % 34.91 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $15,408 $19,231 $23,409 $12,590 $3,108
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(3) 2.00%(4) 2.00 %(4) 2.00 %(4) 2.00 %(4) 2.00 %
Net investment income (loss) 0.31% (0.11)% (0.22)% (0.52)% (0.60)%
Portfolio turnover 349% 166 % 249 % 193 % 192 %
(1) Computed using average shares outstanding.
(2) Maximum sales charges are not reflected in the total return calculation.
(3) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 2.38%,
2.24%, 2.13%, 2.22% and 2.32% for the periods ended August 31, 2003, 2002,
2001, 2000 and 1999, respectively.
(4) The ratio of operating expenses to average net assets excludes the effect
of expense offsets for custodian fees; if expense offsets were included, the
ratio would not significantly differ.
See Notes to Financial Statements
18
PHOENIX INVESTMENT TRUST 97
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2003
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
a diversified open-end management investment company whose shares are offered in
two separate series, each a "Fund."
Phoenix-Hollister Small Cap Value Fund seeks long-term capital appreciation.
Phoenix-Hollister Value Equity Fund's 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. All classes of
shares have 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 of each Fund are borne pro rata by the
holders of all classes of shares, except that each class bears distribution
and/or service expenses unique to that class.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets,
liabilities, disclosure of contingent assets and liabilities, revenues and
expenses. Actual results could differ from those estimates.
A. SECURITY VALUATION:
Equity securities are valued at the official closing price (typically last
sale)on the exchange on which the securities are primarily traded, or if no
closing price is available, at the last bid price. Debt securities are valued on
the basis of broker quotations or valuations provided by a pricing service which
utilizes information with respect to recent sales, market transactions in
comparable securities, quotations from dealers, and various relationships
between securities in determining value. Short-term investments having a
remaining maturity of 60 days or less are valued at amortized cost which
approximates market. All other securities and assets are valued at fair value as
determined in good faith by or under the direction of the Trustees.
B. SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are recorded on the trade date. Interest income is
recorded on the accrual basis. Dividend income is recorded on the ex-dividend
date, or in the case of certain foreign securities, as soon as the Fund is
notified. The Trust amortizes premiums and accretes discounts using the
effective interest method. Realized gains and losses are determined on the
identified cost basis.
C. INCOME TAXES:
Each Fund is treated as a separate taxable entity. It is the policy of each
Fund in the Trust to comply with the requirements of the Internal Revenue Code
(the "Code"), applicable to regulated investment companies, and to distribute
substantially all of its taxable income to its shareholders. In addition, each
Fund intends to distribute an amount sufficient to avoid imposition of any
excise tax under Section 4982 of the Code. Therefore, no provision for federal
income taxes or excise taxes has been made.
The Funds may be subject to foreign taxes on income, gains on investments or
currency repatriation, a portion of which may be recoverable. The Funds will
accrue such taxes and recoveries as applicable based upon current
interpretations of the tax rules and regulations that exist in the markets in
which they invest.
D. DISTRIBUTIONS TO SHAREHOLDERS:
Distributions are recorded by each Fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with income tax
regulations which may differ from accounting principles generally accepted in
the United States of America. These differences may include the treatment of
non-taxable dividends, market premium and discount, non-deductible expenses,
expiring capital loss carryovers, foreign currency gain or loss, gain or loss on
futures contracts, partnerships and losses deferred due to wash sales. Permanent
book and tax basis differences relating to shareholder distributions will result
in reclassifications to paid in capital.
E. FOREIGN CURRENCY TRANSLATION:
Foreign securities and other assets and liabilities are valued using the
foreign currency exchange rate effective at the end of the reporting period.
Cost of investments is translated at the currency exchange rate effective at the
trade date. The gain or loss resulting from a change in currency exchange rates
between the trade and settlement date of a portfolio transaction is treated as a
gain or loss on foreign currency. Likewise, the gain or loss resulting from a
change in currency exchange rates between the date income is accrued and paid is
treated as a gain or loss on foreign currency. The Trust does not separate that
portion of the results of operations arising from changes in exchange rates and
that portion arising from changes in the market prices of securities.
19
PHOENIX INVESTMENT TRUST 97
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2003 (CONTINUED)
F. EXPENSES:
Expenses incurred by the Trust with respect to more than one Fund are
allocated in proportion to the net assets of each Fund, except where allocation
of direct expense to each Fund or an alternative allocation method can be more
fairly made.
3. INVESTMENT ADVISORY FEE AND RELATED PARTY
TRANSACTIONS
As compensation for its services to the Trust, the Adviser, Phoenix
Investment Counsel, Inc., an indirect wholly-owned subsidiary of The Phoenix
Companies, Inc. ("PNX"), is entitled to a fee based upon the following annual
rates as a percentage of the average daily net assets of each separate Fund:
1st $1-2 $2 +
Fund $1 Billion Billion Billion
- ------ ---------- ------- -------
Small Cap Value Fund ............... 0.90% 0.85% 0.80%
Value Equity Fund .................. 0.75% 0.70% 0.65%
The Adviser has voluntarily agreed to assume total operating expenses of each
Fund, excluding interest, taxes, brokerage fees, commissions and extraordinary
expenses, until December 31, 2003, to the extent that such expenses exceed the
following percentages of the average annual net asset values for each Fund:
Class A Class B Class C
Shares Shares Shares
---------- ---------- ----------
Small Cap Value Fund ............... 1.40% 2.15% 2.15%
Value Equity Fund .................. 1.25% 2.00% 2.00%
Phoenix Equity Planning Corporation ("PEPCO"), an indirect wholly-owned
subsidiary of PNX, which serves as the national distributor of the Trust's
shares has advised the Trust that it retained net selling commissions and
deferred sales charges for the period ended August 31, 2003 is as follows:
Class A Class B Class C
Net Selling Deferred Deferred
Commissions Sales Charges Sales Charges
---------- ------------- -------------
Small Cap Value Fund ............... $11,120 $101,912 $7,694
Value Equity Fund .................. 5,548 50,140 2,770
In addition to these amounts the following was paid to W.S. Griffith
Securities, Inc., an indirect subsidiary of PNX, for Class A net selling
commissions.
Small Cap Value Fund ............... $5,674
Value Equity Fund .................. 8,256
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.
The Distributor has advised the Trust that the total amount expensed for the
period ended August 31, 2003 is as follows:
Distribution Distribution
Distribution and/or and/or
and/or Service Fees Service Fees
Service Fees Paid Out to Paid to
Retained by Unaffiliated W.S. Griffith
Distributor Participants Securities, Inc.
----------- ------------ ----------------
Small Cap Value Fund .... $420,509 $553,363 $8,340
Value Equity Fund ....... 178,965 236,951 8,970
As Financial Agent of the Trust, PEPCO receives a financial agent fee equal
to the sum of (1) the documented cost of fund accounting and related services
provided by PFPC Inc. (subagent to PEPCO) plus (2) the documented cost to PEPCO
to provide tax services and oversight of the subagent's performance. For the
period ended August 31, 2003 financial agent fees were $229,432 as reported in
the Statement of Operations of which PEPCO received $38,744 per Fund. Effective
January 1, 2003, the fee schedule of PFPC Inc. ranges from 0.065% to 0.03% of
the average daily net asset values of all the Phoenix funds serviced by PFPC
Inc. Prior to that date, the fee schedule ranged from 0.085% to 0.0125%. Certain
minimum fees may apply.
PEPCO serves as the Trust's Transfer Agent with State Street Bank and Trust
Company as sub-transfer agent. For the period ended August 31, 2003 transfer
agent fees were $705,610 as reported in the Statement of Operations, of which
PEPCO retained the following:
Transfer Agent
Fee Retained
--------------
Small Cap Value Fund ........................................... $201,025
Value Equity Fund .............................................. 60,096
For the period ended August 31, 2003 the following Funds paid PXPSecurities
Corp., an indirect, wholly-owned subsidiary of PNX, brokerage commissions in
connection with portfolio transactions effected on behalf of it as follows:
Commissions Paid to
PXP Securities Corp.
-------------------
Small Cap Value Fund ........................................... $110,112
Value Equity Fund .............................................. 50,028
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities during the period ended August 31, 2003
(excluding U.S. Government and agency securities and short-term securities)
aggregated the following:
Purchases Sales
------------ ------------
Small Cap Value Fund ...................... $356,671,003 $383,722,917
Value Equity Fund ......................... 236,269,144 255,191,728
20
PHOENIX INVESTMENT TRUST 97
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2003 (CONTINUED)
There were no purchases or sales of long-term U.S. Government and agency
securities during the period ended August 31, 2003.
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.
Each Fund may invest a high percentage of its assets in specific sectors of
the market in its pursuit of a greater investment return. Fluctuations in these
sectors of concentration may have a greater impact to the Fund, positive or
negative, than if the Fund did not concentrate its investments in such sectors.
6. FEDERAL INCOME TAX INFORMATION
The Funds have capital loss carryovers which may be used to offset future
capital gains, as follows:
Expiration Year
-----------------------
2010 2011 Total
----------- ----------- -----------
Small Cap Value Fund .................. $27,551,224 $ 5,536,476 $33,087,700
Value Equity Fund ..................... 6,597,012 16,409,509 23,006,521
The Fund may not realize the benefit of these losses to the extent it does
not realize gains on investments prior to the expiration of the capital loss
carryovers.
Under the current tax law, capital and foreign currency losses realized after
October 31 may be deferred and treated as occurring on the first day of the
following fiscal year. For the period ended August 31, 2003, the funds deferred
and recognized post-October losses as follows:
Deferred Recognized
------------ --------------
Small Cap Value Fund ..................... $-- $ 6,649,857
Value Equity Fund ........................ -- 11,500,928
The components of distributable earnings on a tax basis (excluding unrealized
appreciation (depreciation) which are disclosed in the Schedule of Investments)
consist of undistributed ordinary income of $0 for the Small Cap Value Fund and
$181,756 for the Value Equity Fund, and undistributed long-term capital gains of
$0 for both Funds. The differences between the book and tax basis components of
distributable earnings relate principally to the timing of recognition of income
and gains for federal income tax purposes. Short-term gain distributions
reported in the Statement of Changes in Net Assets, if any, are reported as
ordinary income for federal tax purposes.
7. RECLASSIFICATION OF CAPITAL ACCOUNTS
For financial reporting purposes, book basis capital accounts are adjusted to
reflect the tax character of permanent book/tax differences. For the period
ended August 31, 2003, the Funds recorded the following permanent
reclassifications which arose primarily from nondeductible current net operating
losses and differing treatment of certain income and gain transactions. The
reclassifications have no impact on the net assets or net asset value of the
Funds. The following Funds recorded reclassifications to increase (decrease) the
accounts listed below:
Undistributed Accumulated Capital Paid In
Net Investment Net Realized on Shares of
Income (Loss) Gain (Loss) Beneficial Interest
-------------- ------------ -------------------
Small Cap Value Fund ... $549,923 $62,701 $(612,624)
Value Equity Fund ...... (3) 4 (1)
- --------------------------------------------------------------------------------
TAX INFORMATION NOTICE (UNAUDITED)
For Federal income tax purposes, 100% of the current year net income earned
dividends paid by Value Equity Fund will qualify for the dividends received
deduction for corporate shareholders when paid.
Effective for the calendar year 2003, qualified dividends will be taxed at a
lower rate for individual shareholders. 100% of the ordinary income dividends
distributed and applicable to qualifying dividends received after January 1,
2003 will qualify for the lower tax rate. The Fund plans to designate the
maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation
Act. The actual percentage for the calendar year will be designated in the
year-end tax statements.
- --------------------------------------------------------------------------------
This report is not authorized for distribution to prospective investors in
the Phoenix Investment Trust 97 unless preceded or accompanied by an effective
Prospectus which includes information concerning the sales charge, the Fund's
record and other pertinent information.
21
REPORT OF INDEPENDENT AUDITORS
[GRAPHIC OMITTED]
PRICEWATERHOUSECOOPERS
To the Board of Trustees and Shareholders of
Phoenix Investment Trust 97:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Phoenix-Hollister Small Cap Value
Fund and Phoenix-Hollister Value Equity Fund (constituting the Phoenix
Investment Trust 97, hereafter referred to as the "Trust") at August 31, 2003,
the results of each of their operations, the changes in each of their net assets
and the financial highlights for the periods indicated, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at August 31, 2003 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
/S/ PRICEWATERHOUSECOOPERS LLP
Boston, Massachusetts
October 13, 2003
22
FUND MANAGEMENT
Information pertaining to the Trustees and officers of the Trust is set
forth below. The statement of additional information (SAI) includes additional
information about the Trustees and is available without charge, upon request, by
calling (800) 243-4361.
The address of each individual, unless otherwise noted, is 56 Prospect
Street, Hartford, CT 06115-0480. There is no stated term of office for Trustees
of the Trust.
INDEPENDENT TRUSTEES
- ---------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS IN
FUND COMPLEX PRINCIPAL OCCUPATION(S)
NAME, ADDRESS LENGTH OF OVERSEEN BY DURING PAST 5 YEARS AND
AND DATE OF BIRTH TIME SERVED TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ---------------------------------------------------------------------------------------------------------------------
E. Virgil Conway Served since 1997. 35 Chairman, Rittenhouse Advisors, LLC
Rittenhouse Advisors, LLC (consulting firm) since 2001.
101 Park Avenue Trustee/Director, Realty Foundation of New
New York, NY 10178 York (1972-present), Pace University
DOB: 8/2/29 (1978-present), New York Housing Partnership
Development Corp. (Chairman) (1981-present),
Greater New York Councils, Boy Scouts of
America (1985-present), Academy of Political
Science (Vice Chairman) (1985-present),
Urstadt Biddle Property Corp. (1989-present),
The Harlem Youth Development Foundation
(1998-present). Chairman, Metropolitan
Transportation Authority (1992-2001).
Director, Trism, Inc. (1994-2001),
Consolidated Edison Company of New York, Inc.
(1970-2002), Atlantic Mutual Insurance
Company (1974-2002), Centennial Insurance
Company (1974-2002), Josiah Macy, Jr.,
Foundation (1975-2002), Union Pacific Corp.
(1978-2002), Blackrock Freddie Mac Mortgage
Securities Fund (Advisory Director)
(1990-2002), Accuhealth (1994-2002).
- --------------------------------------------------------------------------------------------------------------------
Harry Dalzell-Payne Served since 1997. 35 Currently retired.
The Flat, Elmore Court
Elmore, GL05, GL2 3NT
U.K.
DOB: 8/9/29
- --------------------------------------------------------------------------------------------------------------------
Francis E. Jeffries Served since 1997. 28 Director, The Empire District Electric
8477 Bay Colony Dr. #902 Company (1984-present). Director (1989-1997),
Naples, FL 34108 Chairman of the Board (1993-1997), Phoenix
DOB: 9/23/30 Investment Partners, Ltd.
- ---------------------------------------------------------------------------------------------------------------------
Leroy Keith, Jr. Served since 1997. 25 Partner, Stonington Partners, Inc. (private
Stonington Partners, Inc. equity fund) since 2001. Chairman (1995 to
736 Market Street, Ste. 1430 2000) and Chief Executive Officer
Chattanooga, TN 37402 (1995-1998), Carson Products Company
DOB: 2/14/39 (cosmetics). Director/Trustee, Evergreen
Funds (six portfolios).
- ---------------------------------------------------------------------------------------------------------------------
Geraldine M. McNamara Served since 2001. 35 Managing Director, United States Trust
United States Trust Company of New York (private bank)
Company of New York (1982-present).
114 West 47th Street
New York, NY 10036
DOB: 4/17/51
- ---------------------------------------------------------------------------------------------------------------------
Everett L. Morris Served since 1997. 35 Currently retired, Vice President, W.H.
W.H. Reaves and Company Reaves and Company (investment management)
10 Exchange Place (1993-2003).
Jersey City, NJ 07302
DOB: 5/26/28
- ---------------------------------------------------------------------------------------------------------------------
23
FUND MANAGEMENT (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------
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
- ---------------------------------------------------------------------------------------------------------------------
Richard E. Segerson Served since 1997. 25 Managing Director, Northway Management
Northway Management Company Company (1998-present). Managing Director,
164 Mason Street Mullin Associates (1993-1998).
Greenwich, CT 06830
DOB: 2/16/46
- ---------------------------------------------------------------------------------------------------------------------
Lowell P. Weicker, Jr. Served since 1997. 25 Director, UST, Inc. (1995-present), HPSC Inc.
200 Duke Street (1995-present), Compuware (1996-present) and
Alexandria, VA 22314 WWF, Inc. (2000-present). President, The
DOB: 5/16/31 Trust for America's Health (non-profit)
(2001-present). Director, Duty Free
International, Inc. (1997-1998).
INTERESTED TRUSTEES
Each of the individuals listed below is an "interested person" of the
Trust, as defined in Section 2(a)(19) of the Investment Company Act of 1940, as
amended, and the rules and regulations thereunder.
- ---------------------------------------------------------------------------------------------------------------------
NUMBER OF
NAME, ADDRESS PORTFOLIOS IN
DATE OF BIRTH FUND COMPLEX PRINCIPAL OCCUPATION(S)
AND POSITION(S) LENGTH OF OVERSEEN BY DURING PAST 5 YEARS AND
WITH TRUST TIME SERVED TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ---------------------------------------------------------------------------------------------------------------------
*Marilyn E. LaMarche Served since 2002. 28 Limited Managing Director, Lazard Freres &
Lazard Freres & Co. LLC Co. LLC (1983-present). Director, The Phoenix
30 Rockefeller Plaza, Companies, Inc. (2001-present) and Phoenix
59th Floor Life Insurance Company (1989-present).
New York, NY 10020
DOB: 5/11/34
- ---------------------------------------------------------------------------------------------------------------------
**Philip R. McLoughlin Served since 1997. 45 Consultant, The Phoenix Companies, Inc.
(2002-present). Director, PXRE Corporation
Chairman and President (Delaware) (1985-present), World Trust Fund
DOB: 10/23/46 (1991-present). Chairman (1997-2002),
Director (1995-2002), Vice Chairman
(1995-1997) and Chief Executive Officer
(1995-2002), Phoenix Investment Partners,
Ltd. Director, Executive Vice President and
Chief Investment Officer, The Phoenix
Companies, Inc. (2001-2002). Director
(1994-2002) and Executive Vice President,
Investments (1988-2002), Phoenix Life
Insurance Company. Director (1983-2002) and
Chairman (1995-2002), Phoenix Investment
Counsel, Inc. Director (1984-2002) and
President (1990-2000), Phoenix Equity
Planning Corporation. Chairman and Chief
Executive Officer, Phoenix/Zweig Advisers LLC
(1999-2002). Director and President, Phoenix
Investment Management Company (2001-2002).
Director and Executive Vice President,
Phoenix Life and Annuity Company (1996-2002).
Director and Executive Vice President, PHL
Variable Insurance Company (1995-2002).
Director, Phoenix National Trust Company
(1996-2002). Director and Vice President, PM
Holdings, Inc. (1985-2002). Director, PHL
Associates, Inc. (1995-2002). Director
(1992-2002) and President (1992-1994), W.S.
Griffith Securities, Inc.
- ---------------------------------------------------------------------------------------------------------------------
<FN>
* Ms. LaMarche is an "interested person," as defined in the Investment Company Act of 1940, by reason of her
position as Director of The Phoenix Companies, Inc. and Phoenix Life Insurance Company.
** Mr. McLoughlin is an "interested person," as defined in the Investment Company Act of 1940, by reason of his
relationship with The Phoenix Companies, Inc., and its affiliates.
</FN>
24
FUND MANAGEMENT (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------
NUMBER OF
NAME, ADDRESS PORTFOLIOS IN
DATE OF BIRTH FUND COMPLEX PRINCIPAL OCCUPATION(S)
AND POSITION(S) LENGTH OF OVERSEEN BY DURING PAST 5 YEARS AND
WITH TRUST TIME SERVED TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ---------------------------------------------------------------------------------------------------------------------
***James M. Oates Served since 1997. 30 Chairman, Hudson Castle Group Inc. (formerly
Hudson Castle Group Inc. IBEX Capital Markets Inc.) (financial
c/o Northeast Investment services) (1997-present). Managing Director,
Management, Inc. Wydown Group (consulting firm)
50 Congress Street, (1994-present). Director, Investors Financial
Ste. 1000 Boston, MA 02109 Service Corporation (1995-present), Investors
DOB: 5/31/46 Bank & Trust Corporation (1995-present),
Plymouth Rubber Co. (1995-present), Stifel
Financial (1996-present), Connecticut River
Bancorp (1998-present), Connecticut River
Bank (1998-present) and Trust Company of New
Hampshire (2002-present). Director and
Treasurer, Endowment for Health, Inc.
(2000-present). Chairman, Emerson Investment
Management, Inc. (2000-present). Investment
Committee, New Hampshire Charitable
Foundation (2001-present). Vice Chairman,
Massachusetts Housing Partnership
(1998-1999). Director, Blue Cross and Blue
Shield of New Hampshire (1994-1999), AIB
Govett Funds (1991-2000), Command Systems,
Inc. (1998-2000), Phoenix Investment
Partners, Ltd. (1995-2001) and 1Mind, Inc.
(1999-2001).
- ---------------------------------------------------------------------------------------------------------------------
<FN>
*** Mr. Oates is being treated as an Interested Trustee due to certain relationships existing among Mr. Oates,
Hudson Castle Group Inc. and The Phoenix Companies, Inc. and certain of its affiliates.
</FN>
OFFICERS OF THE TRUST WHO ARE NOT TRUSTEES
POSITION(S) HELD WITH
NAME, ADDRESS TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S)
AND DATE OF BIRTH TIME SERVED DURING PAST 5 YEARS
- ---------------------------------------------------------------------------------------------------------------------
William R. Moyer Executive Vice President Executive Vice President and Chief Financial
DOB: 8/16/44 since 1997. Officer (1999-present), Senior Vice President
and Chief Financial Officer (1995-1999),
Phoenix Investment Partners, Ltd. Director
(1998-present), Senior Vice President,
Finance (1990-present), Chief Financial
Officer (1996-present), and Treasurer
(1998-present), Phoenix Equity Planning
Corporation. Director (1998-present), Senior
Vice President (1990-present), Chief
Financial Officer (1996-present) and
Treasurer (1994-present), Phoenix Investment
Counsel, Inc. Senior Vice President and Chief
Financial Officer, Duff & Phelps Investment
Management Co. (1996-present). Executive Vice
President, Phoenix Fund Complex
(1990-present).
- ---------------------------------------------------------------------------------------------------------------------
John F. Sharry Executive Vice President President, Private Client Group
DOB: 3/28/52 since 1998. (1999-present), Executive Vice President,
Retail Division (1997-1999), Phoenix
Investment Partners, Ltd. President, Private
Client Group, Phoenix Equity Planning
Corporation (2000-present). Executive Vice
President, Phoenix Fund Complex
(1998-present).
- ---------------------------------------------------------------------------------------------------------------------
Robert S. Driessen Vice President since 1999. Vice President and Compliance Officer,
One American Row Phoenix Investment Partners, Ltd.
Hartford, CT 06102 (1999-present). Vice President and Compliance
DOB: 10/12/47 Officer, Phoenix Investment Counsel, Inc.
(1999-2003). Vice President (1999-present),
Anti-Money Laundering Officer (2003-present)
Phoenix Fund Complex. Compliance Officer
(2000-present) and Associate Compliance
Officer (1999), PXP Securities Corp. Vice
President, Risk Management Liaison, Bank of
America (1996-1999). Vice President,
Securities Compliance, The Prudential
Insurance Company of America (1993-1996).
Branch Chief/Financial Analyst, Securities
and Exchange Commission, Division of
Investment Management (1972-1993).
- ---------------------------------------------------------------------------------------------------------------------
Nancy G. Curtiss Treasurer since 1997. Vice President, Fund Accounting, Phoenix
DOB: 11/24/52 Equity Planning Corporation (1994-present)
Treasurer, Phoenix Fund Complex
(1994-present).
- ---------------------------------------------------------------------------------------------------------------------
Richard J. Wirth Secretary since 2002. Vice President and Insurance and Investment
One American Row Products Counsel (2002-present), Counsel
Hartford, CT 06102 (1993-2002), Phoenix Life Insurance Company.
DOB: 11/14/58 Secretary (2002- present), Chief Legal
Officer (2003-present) Phoenix Fund Complex.
- ---------------------------------------------------------------------------------------------------------------------
25
PHOENIX INVESTMENT TRUST 97
101 Munson Street
Greenfield, Massachusetts 01301
TRUSTEES INVESTMENT ADVISER
E. Virgil Conway Phoenix Investment Counsel, Inc.
Harry Dalzell-Payne 56 Prospect Street
Francis E. Jeffries Hartford, Connecticut 06115-0480
Leroy Keith, Jr.
Marilyn E. LaMarche PRINCIPAL UNDERWRITER
Philip R. McLoughlin Phoenix Equity Planning Corporation
Geraldine M. McNamara 56 Prospect Street
Everett L. Morris Hartford, Connecticut 06115-0480
James M. Oates
Richard E. Segerson CUSTODIAN
Lowell P. Weicker, Jr. State Street Bank and Trust Company
P.O. Box 351
OFFICERS Boston, Massachusetts 02101
Philip R. McLoughlin, Chairman and President
William R. Moyer, Executive Vice President TRANSFER AGENT
John F. Sharry, Executive Vice President Phoenix Equity Planning Corporation
Robert S. Driessen, Vice President 56 Prospect Street
Nancy G. Curtiss, Treasurer Hartford, Connecticut 06115-0480
Richard J. Wirth, Secretary
INDEPENDENT AUDITORS
PricewaterhouseCoopers LLP
160 Federal Street
Boston, Massachusetts 02110
HOW TO CONTACT US
Mutual Fund Services 1-800-243-157
Advisor Consulting Group 1-800-243-436
Text Telephone 1-800-243-192
Web site PHOENIXINVESTMENTS.COM
- ---------------------------------------------
IMPORTANT NOTICE TO SHAREHOLDERS
The Securities and Exchange Commission has
modified mailing regulations for semiannual
and annual shareholder fund reports to allow
mutual fund companies to send a single copy
of these reports to shareholders who share
the same mailing address. If you would like
additional copies, please call Mutual Fund
Services at 1-800-243-1574
- ---------------------------------------------
(This page has been left blank intentionally.)
(This page has been left blank intentionally.)
----------------
PRESORTED
STANDARD
U.S.
POSTAGE
PAID
Louisville, KY
Permit No. 1051
----------------
PHOENIX EQUITY PLANNING CORPORATION
P.O. Box 150480
Hartford, CT 06115-0480
(LOGO)
PHOENIX
INVESTMENT PARTNERS, LTD.
A MEMBER OF THE PHOENIX COMPANIES, INC.
[GRAPHIC OMITTED]
For more information about Phoenix mutual funds,
please call your financial representative or contact us
at 1-800-243-4361 or PHOENIXINVESTMENTS.COM.
PXP 215 (10/03)
ITEM 2. CODE OF ETHICS.
(a) The registrant, as of the end of the period covered by this report,
has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party.
(b) There have been no amendments, during the period covered by this
report, to a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are
employed by the registrant or a third party, and that relates to any
element of the code of ethics description.
(c) The registrant has not granted any waivers, including an implicit
waiver, from a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are employed
by the registrant or a third party, that relates to one or more of the
items set forth in paragraph (b) of this item's instructions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) As of the end of the period covered by the report, the Board of
Trustees of the Fund has determined that E. Virgil Conway and Everett
L. Morris possess the technical attributes identified in Instruction
2(b) of Item 3 to Form N-CSR to qualify as an "audit committee
financial expert". Mr. Conway and Mr. Morris are "independent"
trustees pursuant to paragraph (a) (2) of Item 3 to form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. 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
Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 10. EXHIBITS.
(a)(1) Code of ethics, or any amendment thereto, that is the subject of
disclosure required by Item 2 is attached hereto.
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of
2002 are attached hereto.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of
2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) Phoenix Investment Trust 97
- --------------------------------------------------------------------------------
By (Signature and Title)* /s/PHILIP R. MCLOUGHLIN
-------------------------------------------------------
Philip R. McLoughlin, Chairman
(principal executive officer)
Date November 4, 2003
----------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)*/s/PHILIP R. MCLOUGHLIN
-------------------------------------------------------
Philip R. McLoughlin, Chairman
(principal executive officer)
Date November 4, 2003
----------------------------------------------------------------------------
By (Signature and Title)*/s/NANCY G. CURTISS
-------------------------------------------------------
Nancy G. Curtiss, Treasurer
(principal financial officer)
Date November 4, 2003
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.