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
------------
Date of fiscal year end: August 31, 2004
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Date of reporting period: February 29, 2004
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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.
Semiannual Report
[GRAPHIC OMITTED] FEBRUARY 29, 2004
Phoenix Small Cap Value Fund
Phoenix-Oakhurst Value Equity Fund
[GRAPHIC OMITTED]
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PHOENIX
INVESTMENT PARTNERS, LTD.
COMMITTED TO INVESTOR SUCCESS SM
MESSAGE FROM THE CHAIRMAN
DEAR SHAREHOLDER:
Over the last six months, financial services have seen significant change.
National news reflected regulatory attention to a few mutual fund companies'
business conduct. In turn, certain industry-wide practices came under increased
scrutiny.
Your Fund's Board of Trustees recognizes the seriousness of these issues.
As a result, it has expanded its review of policies and procedures to insure
compliance with applicable rules and regulations. Additionally, the Board has
undertaken a review of its own structure and governance protocols to ensure that
our practices are not only compliant with regulatory standards, but, whenever
practical, also conform to best practices that value your interests and help you
invest wisely.
I hope that you'll take time to review the activities and performance
information included in this semiannual report. We've witnessed new life in the
equity markets, and I am encouraged that our overall economy has begun a more
rewarding period. Now is an opportune time for you to review your investments
with your financial adviser to be sure your portfolio is best positioned to
achieve long-term success.
Keep in mind that finding the best balance of performance and protection
requires discipline and diversification 1. Your investment in Phoenix Small Cap
Value Fund and Phoenix-Oakhurst Value Equity Fund may help you in this effort.
To learn more about your investments and investing, visit
PhoenixInvestments.com.
Sincerely,
/s/ PHILIP R. McLOUGHLIN
- ------------------------
Philip R. McLoughlin
Chairman, Phoenix Funds
MARCH 1, 2004
1 DIVERSIFICATION DOES NOT GUARANTEE AGAINST A LOSS, AND THERE IS NO GUARANTEE
THAT A DIVERSIFIED PORTFOLIO WILL OUTPERFORM A NON-DIVERSIFIED PORTFOLIO.
- --------------------------------------------------------------------------------
Mutual funds are not insured by the FDIC; are not deposits or other obligations
of a bank and are not guaranteed by a bank; and are subject to investment risks,
including possible loss of the principal invested.
- --------------------------------------------------------------------------------
1
TABLE OF CONTENTS
Phoenix Small Cap Value Fund .............................................. 3
Phoenix-Oakhurst Value Equity Fund ........................................ 11
Notes to Financial Statements ............................................. 18
This report is not authorized for distribution to prospective investors in
the Phoenix Investment Trust 97 unless preceded or accompanied by an effective
Prospectus which includes information concerning the sales charge, the Fund's
record and other pertinent information.
PHOENIX SMALL CAP VALUE FUND
INVESTMENTS AT FEBRUARY 29, 2004
(UNAUDITED)
SHARES VALUE
------- ------------
COMMON STOCKS--98.2%
Domestic Common Stocks--97.4%
AEROSPACE & DEFENSE--1.7%
DRS Technologies, Inc.(b) ...................... 24,400 $ 735,904
Esterline Technologies Corp.(b) ................ 17,700 492,060
InVision Technologies, Inc.(b) ................. 29,000 1,016,740
Moog, Inc. Class A(b) .......................... 25,650 921,604
------------
3,166,308
------------
AIR FREIGHT & COURIERS--0.1%
Hub Group, Inc. Class A(b) ..................... 3,300 93,819
UTI Worldwide, Inc. ............................ 2,100 94,857
------------
188,676
------------
AIRLINES--0.5%
Atlantic Coast Airlines Holdings, Inc.(b) ...... 123,900 903,231
APPAREL RETAIL--2.3%
Finish Line, Inc. (The) Class A(b) ............. 31,800 1,100,598
Goody's Family Clothing, Inc. .................. 10,400 97,760
Men's Wearhouse, Inc. (The)(b) ................. 50,900 1,330,017
Pacific Sunwear of California, Inc.(b) ......... 72,300 1,733,031
------------
4,261,406
------------
APPAREL, ACCESSORIES & LUXURY GOODS--1.0%
Kellwood Co. ................................... 36,200 1,518,952
Quiksilver, Inc.(b) ............................ 11,900 233,478
------------
1,752,430
------------
APPLICATION SOFTWARE--0.1%
MRO Software, Inc.(b) .......................... 7,900 109,573
ASSET MANAGEMENT & CUSTODY BANKS--0.1%
MCG Capital Corp. .............................. 4,200 83,370
AUTO PARTS & EQUIPMENT--0.1%
Dura Automotive Systems, Inc. Class A(b) ....... 10,600 135,680
BIOTECHNOLOGY--1.5%
Gen-Probe, Inc.(b) ............................. 79,700 2,724,943
BROADCASTING & CABLE TV--0.7%
Hearst-Argyle Television, Inc. ................. 47,500 1,251,625
SHARES VALUE
------- ------------
BUILDING PRODUCTS--1.9%
Griffon Corp.(b) ............................... 21,700 $ 487,816
Lennox International, Inc. ..................... 57,000 1,060,770
USG Corp.(b) ................................... 49,800 862,536
York International Corp. ....................... 29,300 1,093,769
------------
3,504,891
------------
CASINOS & GAMING--1.0%
Aztar Corp.(b) ................................. 78,500 1,752,905
CATALOG RETAIL--0.9%
Insight Enterprises, Inc.(b) ................... 78,700 1,673,949
COMMERCIAL PRINTING--0.3%
Consolidated Graphics, Inc.(b) ................. 13,700 510,462
COMMUNICATIONS EQUIPMENT--3.9%
Black Box Corp. ................................ 23,600 1,215,636
Harris Corp. ................................... 77,700 3,671,325
SeaChange International, Inc.(b) ............... 63,800 1,099,912
Tekelec(b) ..................................... 56,500 1,094,405
------------
7,081,278
------------
COMPUTER STORAGE & PERIPHERALS--1.5%
Hutchinson Technology, Inc.(b) ................. 32,900 936,663
Western Digital Corp.(b) ....................... 151,400 1,724,446
------------
2,661,109
------------
CONSTRUCTION & ENGINEERING--1.9%
Granite Construction, Inc. ..................... 52,900 1,282,825
Integrated Electrical Services, Inc.(b) ........ 42,500 465,800
MasTec, Inc.(b) ................................ 44,700 541,764
URS Corp.(b) ................................... 38,100 1,165,860
------------
3,456,249
------------
CONSTRUCTION, FARM MACHINERY & HEAVY TRUCKS--1.7%
NACCO Industries, Inc. Class A ................. 12,500 1,020,000
Terex Corp.(b) ................................. 58,000 2,031,740
------------
3,051,740
------------
CONSUMER FINANCE--0.8%
CompuCredit Corp.(b) ........................... 63,300 1,371,078
See Notes to Financial Statements
3
Phoenix Small Cap Value Fund
SHARES VALUE
------- ------------
DATA PROCESSING & OUTSOURCED SERVICES--0.4%
eFunds Corp.(b) ................................ 45,400 $ 735,934
DEPARTMENT STORES--1.3%
Neiman Marcus Group, Inc. (The) Class A(b) ..... 40,400 2,281,792
Retail Ventures, Inc.(b) ....................... 2,300 13,754
------------
2,295,546
------------
DIVERSIFIED COMMERCIAL SERVICES--1.5%
Coinstar, Inc.(b) .............................. 79,600 1,438,372
Healthcare Services Group, Inc. ................ 1,600 36,448
NCO Group, Inc.(b) ............................. 28,100 620,167
SOURCECORP, Inc.(b) ............................ 11,700 312,624
TeleTech Holdings, Inc.(b) ..................... 50,000 387,500
------------
2,795,111
------------
ELECTRIC UTILITIES--2.5%
CenterPoint Energy, Inc. ....................... 248,200 2,596,172
WPS Resources Corp. ............................ 40,300 1,916,265
------------
4,512,437
------------
ELECTRICAL COMPONENTS & EQUIPMENT--1.1%
Acuity Brands, Inc. ............................ 49,100 1,199,513
Genlyte Group, Inc. (The)(b) ................... 14,400 810,288
------------
2,009,801
------------
ELECTRONIC EQUIPMENT MANUFACTURERS--0.7%
MTS Systems Corp. .............................. 12,600 338,562
Rofin-Sinar Technologies, Inc.(b) .............. 29,200 874,248
------------
1,212,810
------------
ELECTRONIC MANUFACTURING SERVICES--0.8%
Benchmark Electronics, Inc.(b) ................. 42,600 1,482,906
FOOTWEAR--0.4%
Brown Shoe Co., Inc. ........................... 19,000 748,410
GAS UTILITIES--0.7%
UGI Corp. ...................................... 40,800 1,350,480
HEALTH CARE EQUIPMENT--0.8%
Invacare Corp. ................................. 32,800 1,465,504
HEALTH CARE FACILITIES--3.2%
LifePoint Hospitals, Inc.(b) ................... 78,000 2,613,000
Province Healthcare Co.(b) ..................... 79,400 1,278,340
Sunrise Senior Living, Inc.(b) ................. 53,500 1,881,060
------------
5,772,400
------------
HEALTH CARE SERVICES--0.9%
US Oncology, Inc.(b) ........................... 133,800 1,665,810
SHARES VALUE
------- ------------
HEALTH CARE SUPPLIES--0.1%
West Pharmaceutical Services, Inc. ............. 5,400 $ 199,152
HOMEBUILDING--3.3%
Beazer Homes USA, Inc. ......................... 27,000 2,886,300
Dominion Homes, Inc.(b) ........................ 6,400 221,504
Meritage Corp.(b) .............................. 21,000 1,555,680
Standard-Pacific Corp. ......................... 12,400 648,644
WCI Communities, Inc.(b) ....................... 28,000 642,320
------------
5,954,448
------------
HOTELS, RESORTS & CRUISE LINES--0.1%
Marcus Corp. (The) ............................. 8,700 152,163
INDUSTRIAL MACHINERY--2.1%
EnPro Industries, Inc.(b) ...................... 14,000 274,400
Flowserve Corp.(b) ............................. 96,400 2,094,772
Reliance Steel & Aluminum Co. .................. 47,300 1,487,112
------------
3,856,284
------------
INTERNET SOFTWARE & SERVICES--1.8%
Internet Security Systems, Inc.(b) ............. 150,700 2,668,897
ValueClick, Inc.(b) ............................ 59,800 654,810
------------
3,323,707
------------
INVESTMENT BANKING & BROKERAGE--0.2%
Investment Technology Group, Inc.(b) ........... 29,700 430,056
LEISURE PRODUCTS--1.6%
Callaway Golf Co. .............................. 61,200 1,142,604
Nautilus Group, Inc. (The) ..................... 104,500 1,707,530
------------
2,850,134
------------
LIFE & HEALTH INSURANCE--0.0%
Ceres Group, Inc.(b) ........................... 13,300 75,677
METAL & GLASS CONTAINERS--0.2%
Greif, Inc. Class A ............................ 12,300 440,340
MULTI-UTILITIES & UNREGULATED POWER--1.0%
Energen Corp. .................................. 45,300 1,880,856
OFFICE SERVICES & SUPPLIES--1.3%
IKON Office Solutions, Inc. .................... 103,800 1,219,650
United Stationers, Inc.(b) ..................... 28,700 1,139,677
------------
2,359,327
------------
OIL & GAS DRILLING--0.7%
Unit Corp.(b) .................................. 44,400 1,180,152
OIL & GAS EQUIPMENT & SERVICES--1.3%
Oceaneering International, Inc.(b) ............. 63,500 2,170,430
See Notes to Financial Statements
4
Phoenix Small Cap Value Fund
SHARES VALUE
------- ------------
OIL & GAS EQUIPMENT & SERVICES--(CONTINUED)
Offshore Logistics, Inc.(b) .................... 7,000 $ 160,930
------------
2,331,360
OIL & GAS EXPLORATION & PRODUCTION--4.4%
Chesapeake Energy Corp. ........................ 189,500 2,429,390
Newfield Exploration Co.(b) .................... 66,600 3,122,208
Nuevo Energy Co.(b) ............................ 51,100 1,454,817
XTO Energy, Inc. ............................... 33,500 999,640
------------
8,006,055
OIL & GAS REFINING, MARKETING & TRANSPORTATION--1.7%
OMI Corp.(b) ................................... 144,800 1,565,288
Tesoro Petroleum Corp.(b) ...................... 85,200 1,554,900
------------
3,120,188
PACKAGED FOODS & MEATS--2.0%
Chiquita Brands International, Inc.(b) ......... 88,900 2,020,697
Pilgrim's Pride Corp. .......................... 61,300 1,232,130
Ralcorp Holdings, Inc.(b) ...................... 11,900 382,109
------------
3,634,936
------------
PAPER PRODUCTS--1.7%
Potlatch Corp. ................................. 66,000 2,798,400
Schweitzer-Mauduit International, Inc. ......... 6,500 216,775
------------
3,015,175
------------
PHARMACEUTICALS--3.0%
King Pharmaceuticals, Inc.(b) .................. 150,000 2,890,500
Pharmaceutical Resources, Inc.(b) .............. 40,600 2,533,034
------------
5,423,534
------------
PROPERTY & CASUALTY INSURANCE--4.6%
FPIC Insurance Group, Inc.(b) .................. 16,300 399,024
LandAmerica Financial Group, Inc. .............. 56,500 2,644,200
Mercury General Corp. .......................... 43,800 2,238,180
Navigators Group, Inc. (The)(b) ................ 13,400 387,930
Selective Insurance Group, Inc. ................ 12,700 468,630
Stewart Information Services Corp. ............. 46,100 1,682,650
Zenith National Insurance Corp. ................ 14,800 592,888
------------
8,413,502
------------
PUBLISHING & PRINTING--0.4%
Media General, Inc. Class A .................... 1,200 77,760
Pulitzer, Inc. ................................. 12,200 629,520
------------
707,280
------------
SHARES VALUE
------- ------------
RAILROADS--0.0%
RailAmerica, Inc.(b) ........................... 6,800 $ 78,064
REAL ESTATE MANAGEMENT & DEVELOPMENT--0.2%
Jones Lang LaSalle, Inc.(b) .................... 13,400 321,600
REGIONAL BANKS--5.4%
First Republic Bank ............................ 23,200 931,944
Greater Bay Bancorp ............................ 59,500 1,639,820
Irwin Financial Corp. .......................... 55,900 1,651,845
Local Financial Corp.(b) ....................... 26,800 588,796
Provident Bankshares Corp. ..................... 24,600 810,570
Republic Bancorp, Inc. ......................... 4,200 57,960
South Financial Group, Inc. (The) .............. 64,600 1,990,972
TCF Financial Corp. ............................ 25,400 1,320,292
Texas Regional Bancshares, Inc. Class A ........ 15,100 597,960
U.S.B. Holding Co., Inc. ....................... 12,200 284,016
------------
9,874,175
------------
REINSURANCE--2.7%
Arch Capital Group Ltd.(b) ..................... 26,000 1,102,660
Everest Re Group Ltd. .......................... 38,800 3,390,732
PXRE Group Ltd. ................................ 15,300 411,723
------------
4,905,115
------------
REITS--3.0%
American Home Mortgage Investment Corp. ........ 16,500 437,250
Brandywine Realty Trust ........................ 18,700 532,950
CarrAmerica Realty Corp. ....................... 34,200 1,101,240
Equity Inns, Inc. .............................. 14,700 135,828
Friedman, Billings, Ramsey Group, Inc. Class A . 77,800 2,071,036
Kilroy Realty Corp. ............................ 17,600 587,840
Parkway Properties, Inc. ....................... 5,900 279,070
PS Business Parks, Inc. ........................ 5,100 232,050
------------
5,377,264
------------
RESTAURANTS--1.3%
Jack in the Box, Inc.(b) ....................... 12,200 303,414
Landry's Restaurants, Inc. ..................... 28,700 856,695
Lone Star Steakhouse & Saloon, Inc. ............ 18,300 497,211
O' Charley's, Inc.(b) .......................... 38,300 698,975
------------
2,356,295
------------
SEMICONDUCTORS--0.5%
DSP Group, Inc.(b) ............................. 35,600 906,732
SPECIALIZED FINANCE--1.2%
GATX Corp. ..................................... 95,600 2,248,512
SPECIALTY CHEMICALS--2.5%
Cytec Industries, Inc.(b) ...................... 52,700 1,833,433
See Notes to Financial Statements
5
Phoenix Small Cap Value Fund
SHARES VALUE
------- ------------
SPECIALTY CHEMICALS--(CONTINUED)
Ethyl Corp.(b) ................................. 2,900 $ 59,102
OM Group, Inc.(b) .............................. 86,300 2,651,136
------------
4,543,671
------------
SPECIALTY STORES--1.5%
Asbury Automotive Group, Inc.(b) ............... 2,600 46,410
Haverty Furniture Cos., Inc. ................... 10,800 230,364
Lithia Motors, Inc. Class A .................... 47,800 1,318,324
Movie Gallery, Inc. ............................ 19,100 382,000
TBC Corp.(b) ................................... 9,700 267,332
United Auto Group, Inc. ........................ 17,300 490,974
------------
2,735,404
------------
STEEL--0.8%
Commercial Metals Co. .......................... 22,800 677,160
Worthington Industries, Inc. ................... 46,500 805,845
------------
1,483,005
------------
SYSTEMS SOFTWARE--1.0%
Sybase, Inc.(b) ................................ 88,200 1,897,182
THRIFTS & MORTGAGE FINANCE--8.5%
BankAtlantic Bancorp, Inc. Class A ............. 74,000 1,326,080
Capital Crossing Bank(b) ....................... 4,000 264,320
CharterMac ..................................... 8,000 174,480
Commercial Federal Corp. ....................... 31,000 869,240
Doral Financial Corp. .......................... 66,900 2,282,628
First Federal Capital Corp. .................... 5,700 120,669
FirstFed Financial Corp.(b) .................... 30,300 1,315,020
Flagstar Bancorp, Inc. 113,200 2,926,220
ITLA Capital Corp.(b) .......................... 2,500 119,975
New Century Financial Corp. .................... 60,700 2,974,300
R&G Financial Corp. Class B .................... 47,550 1,490,217
Saxon Capital, Inc.(b) ......................... 35,400 958,632
Sterling Financial Corp.(b) .................... 18,200 663,026
------------
15,484,807
------------
TRADING COMPANIES & DISTRIBUTORS--0.8%
Applied Industrial Technologies, Inc. .......... 20,900 434,720
Watsco, Inc. ................................... 37,900 1,036,944
------------
1,471,664
------------
SHARES VALUE
------- ------------
TRUCKING--0.2%
Dollar Thrifty Automotive Group, Inc.(b) ....... 13,200 $ 355,344
Marten Transport Ltd.(b) ....................... 4,900 86,730
------------
442,074
------------
- --------------------------------------------------------------------------------
TOTAL DOMESTIC COMMON STOCKS
(IDENTIFIED COST $155,640,054) 177,167,942
- --------------------------------------------------------------------------------
Foreign Common Stocks(c)--0.8%
REINSURANCE--0.8%
Montpelier Re Holdings Ltd. (Bermuda) .......... 39,500 1,405,805
- --------------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $1,239,374) 1,405,805
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS--98.2%
(IDENTIFIED COST $156,879,428) 178,573,747
- --------------------------------------------------------------------------------
TOTAL LONG TERM INVESTMENTS--98.2%
(IDENTIFIED COST $156,879,428) 178,573,747
- --------------------------------------------------------------------------------
STANDARD PAR
& POOR'S VALUE
RATING (000)
--------- ------
SHORT-TERM OBLIGATIONS--2.1%
COMMERCIAL PAPER--2.1%
Govco, Inc. 1.04%, 3/1/04 ................. A-1+ $1,695 1,695,000
Honeywell International, Inc. 1%, 3/2/04 .. A-1 2,140 2,139,940
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $3,834,940) 3,834,940
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.3%
(IDENTIFIED COST $160,714,368) 182,408,687(a)
Other assets and liabilities, net--(0.3)% (628,663)
------------
NET ASSETS--100.0% $181,780,024
============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $23,058,282 and gross
depreciation of $2,320,826 for federal income tax purposes. At February 29,
2004, the aggregate cost of securities for federal income tax purposes was
$161,671,231.
(b) Non-income producing.
(c) Foreign Common Stocks are determined based on the country in which the stock
is issued. The country at risk, noted parenthetically, is determined based
on criteria described in Note 2G "Foreign security country determination" in
the Notes to Financial Statements.
See Notes to Financial Statements
6
Phoenix Small Cap Value Fund
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 29, 2004
(UNAUDITED)
ASSETS
Investment securities at value
(Identified cost $160,714,368) $182,408,687
Cash 530
Receivables
Dividends and interest 135,632
Fund shares sold 73,121
Receivable from adviser 40
Prepaid expenses 2,029
------------
Total assets 182,620,039
------------
LIABILITIES
Payables
Fund shares repurchased 480,689
Investment advisory fee 99,371
Distribution and service fees 95,041
Transfer agent fee 90,123
Financial agent fee 12,921
Trustees' fee 9,342
Accrued expenses 52,528
------------
Total liabilities 840,015
------------
NET ASSETS $181,780,024
============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $165,416,043
Accumulated net investment loss (902,597)
Accumulated net realized loss (4,427,741)
Net unrealized appreciation 21,694,319
------------
NET ASSETS $181,780,024
============
CLASS A
Shares of beneficial interest outstanding, no par value,
unlimited authorization (Net Assets $82,816,034) 5,302,442
Net asset value per share $15.62
Offering price per share $15.62/(1-5.75%) $16.57
CLASS B
Shares of beneficial interest outstanding, no par value,
unlimited authorization (Net Assets $44,056,800) 2,969,901
Net asset value and offering price per share $14.83
CLASS C
Shares of beneficial interest outstanding, no par value,
unlimited authorization (Net Assets $54,907,190) 3,701,666
Net asset value and offering price per share $14.83
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY 29, 2004
(UNAUDITED)
INVESTMENT INCOME
Dividends $ 654,067
Interest 40,656
Foreign taxes withheld (2,329)
-----------
Total investment income 692,394
-----------
EXPENSES
Investment advisory fee 793,206
Service fees, Class A 99,963
Distribution and service fees, Class B 212,161
Distribution and service fees, Class C 269,326
Financial agent fee 74,576
Transfer agent 215,740
Registration 39,496
Printing 25,785
Trustees 19,057
Custodian 18,463
Professional 15,700
Miscellaneous 9,082
-----------
Total expenses 1,792,555
Less expenses borne by investment adviser (197,367)
Custodian fees paid indirectly (197)
-----------
Net expenses 1,594,991
-----------
NET INVESTMENT LOSS (902,597)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 31,388,022
Net change in unrealized appreciation (depreciation) on
investments (4,008,464)
-----------
NET GAIN ON INVESTMENTS 27,379,558
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $26,476,961
===========
See Notes to Financial Statements
7
Phoenix Small Cap Value Fund
STATEMENT OF CHANGES IN NET ASSETS
Six Months
Ended
2/29/04 Year Ended
(Unaudited) 8/31/03
------------ -------------
FROM OPERATIONS
Net investment income (loss) $ (902,597) $ (549,923)
Net realized gain (loss) 31,388,022 (581,048)
Net change in unrealized appreciation (depreciation) (4,008,464) 24,331,903
------------ ------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 26,476,961 23,200,932
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (661,101 and 1,907,326 shares, respectively) 9,668,362 21,435,568
Cost of shares repurchased (1,082,065 and 3,531,940 shares, respectively) (15,816,841) (37,879,871)
------------ ------------
Total (6,148,479) (16,444,303)
------------ ------------
CLASS B
Proceeds from sales of shares (117,020 and 360,619 shares, respectively) 1,619,942 3,733,780
Cost of shares repurchased (329,008 and 900,192 shares, respectively) (4,550,833) (9,055,153)
------------ ------------
Total (2,930,891) (5,321,373)
------------ ------------
CLASS C
Proceeds from sales of shares (197,420 and 588,971 shares, respectively) 2,717,498 6,011,638
Cost of shares repurchased (527,508 and 1,092,681 shares, respectively) (7,373,240) (10,996,219)
------------ ------------
Total (4,655,742) (4,984,581)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (13,735,112) (26,750,257)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS 12,741,849 (3,549,325)
NET ASSETS
Beginning of period 169,038,175 172,587,500
------------ ------------
END OF PERIOD [INCLUDING ACCUMULATED NET INVESTMENT LOSS OF ($902,597) AND $0, RESPECTIVELY] $181,780,024 $169,038,175
============ ============
See Notes to Financial Statements
8
Phoenix Small Cap Value Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS A
----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED AUGUST 31
2/29/04 ---------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
Net asset value, beginning of period $13.42 $11.30 $12.72 $17.90 $11.41 $ 8.11
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) (0.04) --(6) (0.01) (0.05) (0.08) 0.01
Net realized and unrealized gain (loss) 2.24 2.12 (1.39) (2.34) 7.38 3.31
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 2.20 2.12 (1.40) (2.39) 7.30 3.32
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- (0.02) (2.79) (0.81) (0.02)
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS -- -- (0.02) (2.79) (0.81) (0.02)
------ ------ ------ ------ ------ ------
Change in net asset value 2.20 2.12 (1.42) (5.18) 6.49 3.30
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $15.62 $13.42 $11.30 $12.72 $17.90 $11.41
====== ====== ====== ====== ====== ======
Total return(2) 16.39 %(7) 18.76% (11.02)% (14.24)% 66.15 % 40.90%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $82,816 $76,783 $83,005 $88,174 $79,254 $26,926
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(3) 1.40 %(5)(8) 1.40%(5) 1.40 %(5) 1.40 %(5) 1.40 %(5) 1.40%
Net investment income (loss) (0.62)%(8) 0.04% (0.11)% (0.39)% (0.45)% 0.15%
Portfolio turnover 128 %(7) 241% 123 % 229 % 191 % 203%
CLASS B
----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED AUGUST 31
2/29/04 ---------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
Net asset value, beginning of period $12.79 $10.85 $12.31 $17.54 $11.27 $ 8.07
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) (0.09) (0.08) (0.10) (0.16) (0.19) (0.06)
Net realized and unrealized gain (loss) 2.13 2.02 (1.34) (2.28) 7.27 3.28
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 2.04 1.94 (1.44) (2.44) 7.08 3.22
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- (0.02) (2.79) (0.81) (0.02)
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS -- -- (0.02) (2.79) (0.81) (0.02)
------ ------ ------ ------ ------ ------
Change in net asset value 2.04 1.94 (1.46) (5.23) 6.27 3.20
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $14.83 $12.79 $10.85 $12.31 $17.54 $11.27
====== ====== ====== ====== ====== ======
Total return(2) 16.03 %(7) 17.88 % (11.72)% (14.89)% 64.97 % 39.86 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $44,057 $40,696 $40,382 $40,270 $26,625 $ 9,494
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 2.15 %(5)(8) 2.15 %(5) 2.15 %(5) 2.15 %(5) 2.15 %(5) 2.15 %
Net investment income (loss) (1.36)%(8) (0.71)% (0.86)% (1.14)% (1.20)% (0.60)%
Portfolio turnover 128 %(7) 241 % 123 % 229 % 191 % 203 %
<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 1.62%, 1.71%, 1.64%, 1.58%, 1.67% and 1.87% for the periods ended February 29, 2004, August 31, 2003, 2002,
2001, 2000 and 1999, respectively.
(4) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets
would have been 2.37%, 2.46%, 2.39%, 2.33%, 2.42% and 2.62% for the periods ended February 29, 2004, August 31, 2003, 2002,
2001, 2000 and 1999, respectively.
(5) The ratio of operating expenses to average net assets excludes the effect of expense offsets for custodian fees; if expense
offsets were included, the ratio would not significantly differ.
(6) Amount is less than $0.01.
(7) Not annualized.
(8) Annualized.
</FN>
See Notes to Financial Statements
9
Phoenix Small Cap Value Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS C
----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED AUGUST 31
2/29/04 ---------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
Net asset value, beginning of period $12.79 $10.85 $12.31 $17.54 $11.27 $ 8.07
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) (0.09) (0.08) (0.10) (0.16) (0.19) (0.06)
Net realized and unrealized gain (loss) 2.13 2.02 (1.34) (2.28) 7.27 3.28
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 2.04 1.94 (1.44) (2.44) 7.08 3.22
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- (0.02) (2.79) (0.81) (0.02)
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS -- -- (0.02) (2.79) (0.81) (0.02)
------ ------ ------ ------ ------ ------
Change in net asset value 2.04 1.94 (1.46) (5.23) 6.27 3.20
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $14.83 $12.79 $10.85 $12.31 $17.54 $11.27
====== ====== ====== ====== ====== ======
Total return(2) 15.95 %(5) 17.88 % (11.72)% (14.89)% 64.97 % 39.86 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $54,907 $51,559 $49,201 $45,450 $28,046 $ 6,465
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(3) 2.15 %(4)(6) 2.15 %(4) 2.15 %(4) 2.15 %(4) 2.15 %(4) 2.15 %
Net investment income (loss) (1.36)%(6) (0.72)% (0.86)% (1.14)% (1.20)% (0.60)%
Portfolio turnover 128 %(5) 241 % 123 % 229 % 191 % 203 %
<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 2.37%, 2.46%, 2.39%, 2.33%, 2.42% and 2.62% for the periods ended February 29, 2004, August 31, 2003, 2002,
2001, 2000 and 1999, respectively.
(4) The ratio of operating expenses to average net assets excludes the effect of expense offsets for custodian fees; if expense
offsets were included, the ratio would not significantly differ.
(5) Not annualized.
(6) Annualized.
</FN>
See Notes to Financial Statements
10
PHOENIX-OAKHURST VALUE EQUITY FUND
INVESTMENTS AT FEBRUARY 29, 2004
(UNAUDITED)
SHARES VALUE
------ ------------
COMMON STOCKS--96.9%
Domestic Common Stocks--94.1%
ADVERTISING--0.9%
Harte-Hanks, Inc. .............................. 27,200 $ 602,480
AEROSPACE & DEFENSE--2.9%
United Defense Industries, Inc.(b) ............. 30,400 931,760
United Technologies Corp. ...................... 10,800 994,788
-----------
1,926,548
-----------
AIR FREIGHT & COURIERS--3.1%
CNF, Inc. ...................................... 15,200 505,400
FedEx Corp. .................................... 6,500 446,420
Ryder System, Inc. ............................. 29,400 1,083,096
-----------
2,034,916
-----------
ASSET MANAGEMENT & CUSTODY BANKS--1.3%
Bank of New York Co., Inc. (The) ............... 10,100 333,300
Mellon Financial Corp. ......................... 16,300 527,794
-----------
861,094
-----------
CASINOS & GAMING--4.1%
Alliance Gaming Corp.(b) ....................... 49,000 1,188,740
Caesars Entertainment, Inc. .................... 47,900 589,170
Mandalay Resort Group .......................... 18,500 950,900
-----------
2,728,810
-----------
COMMUNICATIONS EQUIPMENT--1.3%
Avocent Corp.(b) ............................... 11,500 444,705
Cisco Systems, Inc.(b) ......................... 17,300 399,630
-----------
844,335
-----------
COMPUTER HARDWARE--0.5%
Dell, Inc.(b) .................................. 9,300 303,645
COMPUTER STORAGE & PERIPHERALS--0.4%
EMC Corp.(b) ................................... 19,600 280,672
DATA PROCESSING & OUTSOURCED SERVICES--0.7%
Computer Sciences Corp.(b) ..................... 11,500 480,585
SHARES VALUE
------ ------------
DEPARTMENT STORES--2.1%
Neiman Marcus Group, Inc. (The) Class A(b) ..... 24,500 $ 1,383,760
DIVERSIFIED BANKS--10.7%
Bank of America Corp. .......................... 30,400 2,490,368
Bank One Corp. ................................. 21,900 1,182,162
FleetBoston Financial Corp. .................... 11,900 535,857
U.S. Bancorp ................................... 28,300 807,399
Wells Fargo & Co. .............................. 35,800 2,053,130
-----------
7,068,916
-----------
DIVERSIFIED CAPITAL MARKETS--2.7%
J.P. Morgan Chase & Co. ........................ 43,500 1,784,370
DIVERSIFIED CHEMICALS--2.6%
Du Pont (E.I.) de Nemours & Co. ................ 38,800 1,749,492
DIVERSIFIED COMMERCIAL SERVICES--1.2%
ARAMARK Corp. Class B .......................... 28,300 776,835
ELECTRONIC EQUIPMENT MANUFACTURERS--2.0%
AVX Corp. ...................................... 36,800 619,712
Vishay Intertechnology, Inc.(b) ................ 30,400 684,304
-----------
1,304,016
-----------
FOOTWEAR--1.6%
Reebok International Ltd. ...................... 27,200 1,082,832
HEALTH CARE DISTRIBUTORS--4.2%
Cardinal Health, Inc. .......................... 12,700 828,421
Omnicare, Inc. ................................. 29,400 1,354,164
Schein (Henry), Inc.(b) ........................ 8,700 622,050
-----------
2,804,635
-----------
HEALTH CARE EQUIPMENT--1.5%
Boston Scientific Corp.(b) ..................... 20,000 817,000
DENTSPLY International, Inc. ................... 3,800 166,478
-----------
983,478
-----------
HEALTH CARE SUPPLIES--2.2%
Fisher Scientific International, Inc.(b) ....... 27,500 1,464,375
See Notes to Financial Statements
11
Phoenix-Oakhurst Value Equity Fund
SHARES VALUE
------ ------------
HOUSEHOLD PRODUCTS--3.3%
Dial Corp. (The) ............................... 34,800 $ 1,000,152
Procter & Gamble Co. (The) ..................... 11,900 1,219,869
-----------
2,220,021
-----------
INDUSTRIAL CONGLOMERATES--0.5%
General Electric Co. ........................... 9,800 318,696
INDUSTRIAL GASES--0.3%
Airgas, Inc. ................................... 10,400 215,800
INDUSTRIAL MACHINERY--1.5%
Pall Corp. ..................................... 39,200 1,025,864
INSURANCE BROKERS--0.3%
Willis Group Holdings Ltd. ..................... 4,400 168,740
INTEGRATED OIL & GAS--4.5%
ChevronTexaco Corp. ............................ 6,500 574,275
Exxon Mobil Corp. .............................. 56,500 2,382,605
-----------
2,956,880
-----------
INTEGRATED TELECOMMUNICATION SERVICES--2.7%
SBC Communications, Inc. ....................... 28,300 679,483
Verizon Communications, Inc. ................... 29,400 1,126,902
-----------
1,806,385
-----------
INVESTMENT BANKING & BROKERAGE--6.4%
E*TRADE Financial Corp.(b) ..................... 45,700 653,967
Goldman Sachs Group, Inc. (The) ................ 5,300 561,111
Merrill Lynch & Co., Inc. ...................... 27,900 1,707,759
Morgan Stanley ................................. 21,900 1,308,744
-----------
4,231,581
-----------
LEISURE PRODUCTS--1.9%
Brunswick Corp. ................................ 8,000 314,880
Marvel Enterprises, Inc.(b) .................... 28,300 969,275
-----------
1,284,155
-----------
LIFE & HEALTH INSURANCE--1.1%
Prudential Financial, Inc. ..................... 16,300 756,157
METAL & GLASS CONTAINERS--1.3%
Ball Corp. ..................................... 13,000 839,410
MOVIES & ENTERTAINMENT--1.5%
Time Warner, Inc.(b) ........................... 56,500 974,625
MULTI-LINE INSURANCE--0.8%
American International Group, Inc. ............. 7,500 555,000
SHARES VALUE
------ ------------
OIL & GAS DRILLING--0.6%
Patterson-UTI Energy, Inc.(b) .................. 10,800 $ 391,824
OIL & GAS EQUIPMENT & SERVICES--1.8%
Baker Hughes, Inc. ............................. 7,500 282,150
BJ Services Co.(b) ............................. 8,700 376,623
Schlumberger Ltd. .............................. 8,700 561,063
-----------
1,219,836
-----------
OIL & GAS EXPLORATION & PRODUCTION--1.3%
Anadarko Petroleum Corp. ....................... 17,300 886,625
OTHER DIVERSIFIED FINANCIAL SERVICES--4.3%
Citigroup, Inc. ................................ 56,500 2,839,690
PACKAGED FOODS & MEATS--0.9%
Kellogg Co. .................................... 15,200 600,248
PROPERTY & CASUALTY INSURANCE--0.9%
Travelers Property Casualty Corp. Class A ...... 33,900 615,624
PUBLISHING & PRINTING--3.8%
Belo Corp. Class A ............................. 22,400 624,960
Knight-Ridder, Inc. ............................ 8,500 635,460
McClatchy Co. (The) Class A .................... 9,500 651,510
Tribune Co. .................................... 12,900 644,226
-----------
2,556,156
-----------
RAILROADS--2.2%
Norfolk Southern Corp. ......................... 44,400 983,904
Union Pacific Corp. ............................ 7,600 483,664
-----------
1,467,568
-----------
SEMICONDUCTOR EQUIPMENT--0.5%
Applied Materials, Inc.(b) ..................... 15,200 322,848
SEMICONDUCTORS--0.5%
Agere Systems, Inc. Class A(b) ................. 92,500 358,900
SOFT DRINKS--1.9%
PepsiCo, Inc. .................................. 24,000 1,245,600
SPECIALIZED FINANCE--2.3%
CIT Group, Inc. ................................ 38,000 1,499,860
SYSTEMS SOFTWARE--1.0%
Oracle Corp.(b) ................................ 49,200 633,696
- --------------------------------------------------------------------------------
TOTAL DOMESTIC COMMON STOCKS
(IDENTIFIED COST $54,836,118) 62,457,583
- --------------------------------------------------------------------------------
See Notes to Financial Statements
12
Phoenix-Oakhurst Value Equity Fund
SHARES VALUE
------ ------------
Foreign Common Stocks(c)--2.8%
PHARMACEUTICALS--1.1%
Teva Pharmaceutical Industries Ltd. ADR (Israel) 10,900 $ 708,500
PROPERTY & CASUALTY INSURANCE--1.7%
ACE Ltd. (Bermuda) ............................. 26,000 1,168,960
- --------------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $1,512,276) 1,877,460
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $56,348,394) 64,335,043
- --------------------------------------------------------------------------------
EXCHANGE TRADED FUNDS--1.1%
iShares Russell 1000 Value Index Fund .......... 11,800 715,552
- --------------------------------------------------------------------------------
TOTAL EXCHANGE TRADED FUNDS
(IDENTIFIED COST $644,917) 715,552
- --------------------------------------------------------------------------------
TOTAL LONG TERM INVESTMENTS--98.0%
(IDENTIFIED COST $56,993,311) 65,050,595
- --------------------------------------------------------------------------------
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
-------- ------ -----------
SHORT-TERM OBLIGATIONS--2.3%
COMMERCIAL PAPER--2.3%
Govco, Inc. 1.04%, 3/1/04 A-1+ $1,480 $ 1,480,000
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $1,480,000) 1,480,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.3%
(IDENTIFIED COST $58,473,311) 66,530,595(a)
Other assets and liabilities, net--(0.3)% (172,132)
-----------
NET ASSETS--100.0% $66,358,463
===========
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $7,881,157 and gross
depreciation of $162,510 for federal income tax purposes. At February 29,
2004, the aggregate cost of securities for federal income tax purposes was
$58,811,948.
(b) Non-income producing.
(c) Foreign Common Stocks are determined based on the country in which the stock
is issued. The country at risk, noted parenthetically, is determined based
on criteria described in Note 2G "Foreign security country determination" in
the Notes to Financial Statements.
See Notes to Financial Statements
13
Phoenix-Oakhurst Value Equity Fund
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 29, 2004
(UNAUDITED)
ASSETS
Investment securities at value
(Identified cost $58,473,311) $ 66,530,595
Cash 3,329
Receivables
Investment securities sold 643,406
Fund shares sold 55,255
Dividends and interest 68,191
Prepaid expenses 828
------------
Total assets 67,301,604
------------
LIABILITIES
Payables
Investment securities purchased 667,378
Fund shares repurchased 129,479
Transfer agent fee 37,158
Distribution and service fees 30,398
Professional fee 20,276
Investment advisory fee 18,602
Trustees' fee 9,342
Financial agent fee 6,730
Payable to adviser 78
Accrued expenses 23,700
------------
Total liabilities 943,141
------------
NET ASSETS $ 66,358,463
============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 77,537,969
Accumulated net investment loss (5,066)
Accumulated net realized loss (19,231,724)
Net unrealized appreciation 8,057,284
------------
NET ASSETS $ 66,358,463
============
CLASS A
Shares of beneficial interest outstanding, no par value,
unlimited authorization (Net Assets $37,463,061) 2,979,716
Net asset value per share $12.57
Offering price per share $12.57/(1-5.75%) $13.34
CLASS B
Shares of beneficial interest outstanding, no par value,
unlimited authorization (Net Assets $15,247,781) 1,252,925
Net asset value and offering price per share $12.17
CLASS C
Shares of beneficial interest outstanding, no par value,
unlimited authorization (Net Assets $13,647,621) 1,120,634
Net asset value and offering price per share $12.18
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY 29, 2004
(UNAUDITED)
INVESTMENT INCOME
Dividends $ 518,409
Interest 4,156
Foreign taxes withheld (1,207)
----------
Total investment income 521,358
----------
EXPENSES
Investment advisory fee 248,831
Service fees, Class A 45,857
Distribution and service fees, Class B 77,095
Distribution and service fees, Class C 71,255
Financial agent fee 39,761
Transfer agent 82,512
Registration 29,311
Trustees 19,057
Professional 16,449
Custodian 13,771
Printing 11,639
Miscellaneous 6,894
----------
Total expenses 662,432
Less expenses borne by investment adviser (136,451)
----------
Net expenses 525,981
----------
NET INVESTMENT LOSS (4,623)
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 5,744,720
Net change in unrealized appreciation (depreciation) on
investments 1,261,215
----------
NET GAIN ON INVESTMENTS 7,005,935
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $7,001,312
==========
See Notes to Financial Statements
14
Phoenix-Oakhurst Value Equity Fund
STATEMENT OF CHANGES IN NET ASSETS
Six Months
Ended
2/29/04 Year Ended
(Unaudited) 8/31/03
------------- -------------
FROM OPERATIONS
Net investment income (loss) $ (4,623) $ 496,711
Net realized gain (loss) 5,744,720 (6,218,723)
Net change in unrealized appreciation (depreciation) 1,261,215 7,942,711
------------- -------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 7,001,312 2,220,699
------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (123,233) (283,597)
Net investment income, Class B (30,551) (39,301)
Net investment income, Class C (28,415) (42,475)
------------- -------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (182,199) (365,373)
------------- -------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (310,587 and 891,000 shares, respectively) 3,644,225 8,885,100
Net asset value of shares issued from reinvestment of distributions
(10,049 and 24,886 shares, respectively) 118,886 267,903
Cost of shares repurchased (634,685 and 1,758,338 shares, respectively) (7,470,014) (17,230,551)
------------- -------------
Total (3,706,903) (8,077,548)
------------- -------------
CLASS B
Proceeds from sales of shares (83,577 and 189,176 shares, respectively) 949,859 1,850,017
Net asset value of shares issued from reinvestment of distributions
(2,377 and 2,789 shares, respectively) 27,241 29,746
Cost of shares repurchased (321,793 and 1,494,049 shares, respectively) (3,630,857) (14,264,891)
------------- -------------
Total (2,653,757) (12,385,128)
------------- -------------
CLASS C
Proceeds from sales of shares (43,915 and 170,326 shares, respectively) 497,978 1,652,857
Net asset value of shares issued from reinvestment of distributions
(2,239 and 3,218 shares, respectively) 25,685 34,338
Cost of shares repurchased (326,378 and 629,913 shares, respectively) (3,704,513) (6,096,181)
------------- -------------
Total (3,180,850) (4,408,986)
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (9,541,510) (24,871,662)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS (2,722,397) (23,016,336)
NET ASSETS
Beginning of period 69,080,860 92,097,196
------------- -------------
END OF PERIOD [INCLUDING ACCUMULATED NET INVESTMENT LOSS AND UNDISTRIBUTED
NET INVESTMENT INCOME OF ($5,066) AND $181,756, RESPECTIVELY] $ 66,358,463 $ 69,080,860
============= =============
See Notes to Financial Statements
15
Phoenix-Oakhurst Value Equity Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS A
----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED AUGUST 31
2/29/04 ---------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
Net asset value, beginning of period $11.33 $10.64 $12.76 $15.03 $12.11 $ 8.94
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) 0.02 0.11 0.08 0.08 0.03 0.02
Net realized and unrealized gain (loss) 1.26 0.66 (1.97) (0.93) 2.89 3.20
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 1.28 0.77 (1.89) (0.85) 2.92 3.22
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.04) (0.08) (0.08) -- -- (0.05)
Distributions from net realized gains -- -- (0.15) (1.42) -- --
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (0.04) (0.08) (0.23) (1.42) -- (0.05)
------ ------ ------ ------ ------ ------
Change in net asset value 1.24 0.69 (2.12) (2.27) 2.92 3.17
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $12.57 $11.33 $10.64 $12.76 $15.03 $12.11
====== ====== ====== ====== ====== ======
Total return(2) 11.32%(6) 7.31% (14.97)% (6.71)% 24.11% 35.89%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $37,463 $37,310 $43,993 $58,260 $37,977 $26,974
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(3) 1.25%(7) 1.25%(5) 1.25 %(5) 1.25 %(5) 1.25%(5) 1.25%
Net investment income 0.32%(7) 1.06% 0.64 % 0.53 % 0.20% 0.14%
Portfolio turnover 151%(6) 349% 166 % 249 % 193% 192%
CLASS B
----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED AUGUST 31
2/29/04 ---------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
Net asset value, beginning of period $10.99 $10.35 $12.42 $14.77 $12.00 $ 8.89
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) (0.02) 0.04 (0.01) (0.03) (0.08) (0.07)
Net realized and unrealized gain (loss) 1.22 0.63 (1.91) (0.90) 2.85 3.19
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 1.20 0.67 (1.92) (0.93) 2.77 3.12
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.02) (0.03) -- -- -- (0.01)
Distributions from net realized gains -- -- (0.15) (1.42) -- --
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (0.02) (0.03) (0.15) (1.42) -- (0.01)
------ ------ ------ ------ ------ ------
Change in net asset value 1.18 0.64 (2.07) (2.35) 2.77 3.11
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $12.17 $10.99 $10.35 $12.42 $14.77 $12.00
====== ====== ====== ====== ====== ======
Total return(2) 10.96 %(6) 6.44% (15.57)% (7.42)% 23.08 % 35.05 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $15,248 $16,363 $28,873 $36,669 $26,471 $24,709
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 2.00 %(7) 2.00%(5) 2.00 %(5) 2.00 %(5) 2.00 %(5) 2.00 %
Net investment income (loss) (0.43)%(7) 0.37% (0.11)% (0.22)% (0.57)% (0.62)%
Portfolio turnover 151%(6) 349% 166 % 249 % 193 % 192 %
<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 1.66%, 1.63%, 1.49%, 1.38%, 1.47% and 1.57% for the periods ended February 29, 2004, August 31, 2003, 2002,
2001, 2000 and 1999, respectively.
(4) If the investment adviser had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets
would have been 2.41%, 2.38%, 2.24%, 2.13%, 2.22% and 2.32% for the periods ended February 29, 2004, August 31, 2003, 2002,
2001, 2000 and 1999, respectively.
(5) The ratio of operating expenses to average net assets excludes the effect of expense offsets for custodian fees; if expense
offsets were included, the ratio would not significantly differ.
(6) Not annualized.
(7) Annualized.
</FN>
See Notes to Financial Statements
16
Phoenix-Oakhurst Value Equity Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS C
----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED AUGUST 31
2/29/04 ---------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
Net asset value, beginning of period $11.00 $10.35 $12.43 $14.78 $12.00 $ 8.89
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) (0.02) 0.03 (0.01) (0.03) (0.07) (0.07)
Net realized and unrealized gain (loss) 1.22 0.65 (1.92) (0.90) 2.85 3.19
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 1.20 0.68 (1.93) (0.93) 2.78 3.12
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.02) (0.03) -- -- -- (0.01)
Distributions from net realized gains -- -- (0.15) (1.42) -- --
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (0.02) (0.03) (0.15) (1.42) -- (0.01)
------ ------ ------ ------ ------ ------
Change in net asset value 1.18 0.65 (2.08) (2.35) 2.78 3.11
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $12.18 $11.00 $10.35 $12.43 $14.78 $12.00
====== ====== ====== ====== ====== ======
Total return(2) 10.95 %(5) 6.47% (15.56)% (7.41)% 23.17 % 34.91 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $13,648 $15,408 $19,231 $23,409 $12,590 $ 3,108
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(3) 2.00 %(6) 2.00%(4) 2.00 %(4) 2.00 %(4) 2.00 %(4) 2.00 %
Net investment income (loss) (0.43)%(6) 0.31% (0.11)% (0.22)% (0.52)% (0.60)%
Portfolio turnover 151 %(5) 349% 166 % 249 % 193 % 192 %
<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 2.41%, 2.38%, 2.24%, 2.13%, 2.22% and 2.32% for the periods ended February 29, 2004, August 31, 2003, 2002,
2001, 2000 and 1999, respectively.
(4) The ratio of operating expenses to average net assets excludes the effect of expense offsets for custodian fees; if expense
offsets were included, the ratio would not significantly differ.
(5) Not annualized.
(6) Annualized.
</FN>
See Notes to Financial Statements
17
PHOENIX INVESTMENT TRUST 97
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2004 (UNAUDITED)
1. ORGANIZATION
Phoenix Investment Trust 97 (the "Trust") is organized as a Delaware business
trust and is registered under the Investment Company Act of 1940, as amended, as
an open-end management investment company.
Currently, two funds are offered for sale (each a "Fund"), Phoenix Small Cap
Value Fund is diversified and seeks long-term capital appreciation.
Phoenix-Oakhurst Value Equity Fund is diversified and its primary investment
objective is to seek long-term capital appreciation and its secondary objective
is to seek current income.
Each Fund offers Class A, Class B and Class C shares. Class A shares are sold
with a front-end sales charge of up to 5.75%. Class B shares are sold with a
contingent deferred sales charge which declines from 5% to zero depending on the
period of time the shares are held. Class C shares are sold with a 1% contingent
deferred sales charge if redeemed within one year of purchase.
Each class of shares has identical voting, dividend, liquidation and other
rights and the same terms and conditions, except that each class bears different
distribution and/or service expenses and has exclusive voting rights with
respect to its distribution plan. Income and expenses and realized and
unrealized gains and losses of each Fund are borne pro rata by the holders of
each class of shares.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets,
liabilities, disclosure of contingent assets and liabilities, revenues and
expenses. Actual results could differ from those estimates.
A. SECURITY VALUATION:
Equity securities are valued at the official closing price (typically last
sale)on the exchange on which the securities are primarily traded, or if no
closing price is available, at the last bid price. Debt securities are valued on
the basis of broker quotations or valuations provided by a pricing service which
in determining value utilizes information with respect to recent sales, market
transactions in comparable securities, quotations from dealers, and various
relationships between securities. Short-term investments having a remaining
maturity of 60 days or less are valued at amortized cost which approximates
market. As required, some investments are valued at fair value as determined in
good faith by or under the direction of the Trustees.
B. SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are recorded on the trade date. Dividend income is
recorded on the ex-dividend date, or in the case of certain foreign securities,
as soon as the Fund is notified. Interest income is recorded on the accrual
basis. The Trust amortizes premiums and accretes discounts using the effective
interest method. Realized gains and losses are determined on the identified cost
basis.
C. INCOME TAXES:
Each Fund is treated as a separate taxable entity. It is the policy of each
Fund in the Trust to comply with the requirements of the Internal Revenue Code
(the "Code"), applicable to regulated investment companies, and to distribute
substantially all of its taxable income to its shareholders. In addition, each
Fund intends to distribute an amount sufficient to avoid imposition of any
excise tax under Section 4982 of the Code. Therefore, no provision for federal
income taxes or excise taxes has been made.
The Funds may be subject to foreign taxes on income, gains on investments or
currency repatriation, a portion of which may be recoverable. The Funds will
accrue such taxes and recoveries as applicable based upon current
interpretations of the tax rules and regulations that exist in the markets in
which they invest.
D. DISTRIBUTIONS TO SHAREHOLDERS:
Distributions are recorded by each Fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with income tax
regulations which may differ from accounting principles generally accepted in
the United States of America. These differences may include the treatment of
non-taxable dividends, market premium and discount, non-deductible expenses,
expiring capital loss carryovers, foreign currency gain or loss, gain or loss on
futures contracts, partnerships and losses deferred due to wash sales. Permanent
book and tax basis differences relating to shareholder distributions will result
in reclassifications to capital paid in on shares of beneficial interest.
E. FOREIGN CURRENCY TRANSLATION:
Foreign securities and other assets and liabilities are valued using the
foreign currency exchange rate effective at the end of the reporting period.
Cost of investments is translated at the currency exchange rate effective at the
trade date. The gain or loss resulting from a change in currency exchange rates
between the trade and settlement date of a portfolio transaction is treated as a
gain or loss on foreign currency. Likewise, the gain or loss resulting from a
change in currency exchange rates between the date income is accrued and paid is
treated as a gain or loss on foreign currency. The Funds do not separate that
portion of the results of operations arising from changes in exchange rates and
that portion arising from changes in the market prices of securities.
18
PHOENIX INVESTMENT TRUST 97
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2004 (UNAUDITED)(CONTINUED)
F. EXPENSES:
Expenses incurred by the Trust with respect to more than one Fund are
allocated in proportion to the net assets of each Fund, except where allocation
of direct expense to each Fund or an alternative allocation method can be more
fairly made.
G. FOREIGN SECURITY COUNTRY DETERMINATION:
A combination of the following criteria is used to assign the countries at
risk listed in the schedules of investments: country of incorporation, actual
building address, primary exchange on which security is traded and country in
which the greatest percentage of company revenue is generated.
3. INVESTMENT ADVISORY FEE AND RELATED PARTY
TRANSACTIONS
As compensation for its services to the Trust, the Adviser, Phoenix
Investment Counsel, Inc., an indirect wholly-owned subsidiary of The Phoenix
Companies, Inc. ("PNX"), is entitled to a fee based upon the following annual
rates as a percentage of the average daily net assets of each separate Fund:
1st $1-2 $2 +
Fund $1 Billion Billion Billion
- ------ ---------- ------- -------
Small Cap Value Fund ............ 0.90% 0.85% 0.80%
Value Equity Fund ............... 0.75% 0.70% 0.65%
The Adviser has voluntarily agreed to assume total operating expenses of each
Fund, excluding interest, taxes, brokerage fees, commissions and extraordinary
expenses, until December 31, 2004, to the extent that such expenses exceed the
following percentages of the average annual net asset values for each Fund:
Class A Class B Class C
Shares Shares Shares
------- ------- -------
Small Cap Value Fund ............ 1.40% 2.15% 2.15%
Value Equity Fund ............... 1.25% 2.00% 2.00%
Effective January 27, 2004, Phoenix/Zweig Advisers ("PZA") is the subadviser
to the Small Cap Value Fund. For its services, PZA is paid a fee by the Adviser
equal to 0.10% of the average daily net assets of this Fund up to $166 million
and 0.40% in excess of $166 million. PZA is a wholly-owned subsidiary of PNX.
As Distributor of the Trust's shares, Phoenix Equity Planning Corporation
("PEPCO"), an indirect wholly-owned subsidiary of PNX, has advised the Trust
that it retained net selling commissions and deferred sales charges for the
period ended February 29, 2004 as follows:
Class A Class B Class C
Net Selling Deferred Deferred
Commissions Sales Charges Sales Charges
----------- ------------- -------------
Small Cap Value Fund ....... $4,742 $57,313 $1,357
Value Equity Fund .......... 1,957 50,800 586
In addition to these amounts, the following was paid to W.S. Griffith
Securities, Inc., an indirect subsidiary of PNX, for Class A net selling
commissions:
Small Cap Value Fund ..... $3,271
Value Equity Fund ........ 1,870
In addition, each fund pays PEPCO distribution and/or service fees at an
annual rate of 0.25% for Class A shares, 1.00% for Class B shares and 1.00% for
Class C shares applied to the average daily net assets of each respective class.
PEPCO has advised the Trust of the following for the period ended February 29,
2004:
Distribution Distribution
Distribution and/or and/or
and/or Service Fees Service Fees
Service Fees Paid Out to Paid to
Retained by Unaffiliated W.S. Griffith
Distributor Participants Securities, Inc.
------------ ------------ ----------------
Small Cap Value Fund .... $248,620 $325,928 $6,902
Value Equity Fund ....... 83,676 103,247 7,284
As Financial Agent of the Trust, PEPCO receives a financial agent fee equal
to the sum of (1) the documented cost of fund accounting and related services
provided by PFPC Inc. (subagent to PEPCO) plus (2) the documented cost to PEPCO
to provide tax services and oversight of the subagent's performance. For the
period ended February 29, 2004, the Trust paid PEPCO $114,337. The fee schedule
of PFPC Inc. ranges from 0.065% to 0.03% of the average daily net asset values
of all the Phoenix-affiliated funds serviced by PFPC Inc. Certain minimum fees
may apply.
PEPCO serves as the Trust's Transfer Agent with State Street Bank and Trust
Company serving as sub-transfer agent. For the period ended February 29, 2004,
transfer agent fees were $298,252 as reported in the Statement of Operations, of
which PEPCO retained the following:
Transfer Agent
Fee Retained
--------------
Small Cap Value Fund ...................................... $92,565
Value Equity Fund ......................................... 25,071
For the period ended February 29, 2004, the following Funds paid
PXPSecurities Corp., an indirect, wholly-owned subsidiary of PNX, brokerage
commissions in connection with portfolio transactions effected on behalf of it
as follows:
Commissions Paid to
PXP Securities Corp.
--------------------
Small Cap Value Fund ............................. $21,032
Value Equity Fund ................................ 27,794
19
PHOENIX INVESTMENT TRUST 97
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2004 (UNAUDITED)(CONTINUED)
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities during the period ended February 29, 2004
(excluding U.S. Government and agency securities and short-term securities) were
as follows:
Purchases Sales
------------ ------------
Small Cap Value Fund .................... $205,724,696 $216,910,291
Value Equity Fund ....................... 98,479,712 109,311,408
Purchases and sales of long-term U.S. Government and agency securities during
the period ended February 29, 2004 were as follows:
Purchases Sales
------------ ------------
Small Cap Value Fund .................... $4,100,845 $4,100,000
Value Equity Fund ....................... -- --
5. CREDIT RISK AND ASSET CONCENTRATIONS
In countries with limited or developing markets, investments may present
greater risks than in more developed markets and the prices of such investments
may be volatile. The consequences of political, social or economic changes in
these markets may have disruptive effects on the market prices of these
investments and the income they generate, as well as a fund's ability to
repatriate such amounts.
Certain funds may invest a high percentage of their assets in specific
sectors of the market in their pursuit of a greater investment return.
Fluctuations in these sectors of concentration may have a greater impact on a
fund, positive or negative, than if a fund did not concentrate its investments
in such sectors.
High yield/high risk securities typically entail greater price volatility
and/or principal and interest rate risk. There is a greater chance that an
issuer will not be able to make principal and interest payments on time.
Analysis of the creditworthiness of issuers of high yield securities may be
complex, and as a result, it may be more difficult for the Adviser to accurately
predict risk.
6. FEDERAL INCOME TAX INFORMATION
The Funds have capital loss carryovers which may be used to offset future
capital gains, as follows:
Expiration Year
-----------------------------------------
2010 2011 Total
----------- ----------- -----------
Small Cap Value Fund .......... $27,551,224 $ 5,536,476 $33,087,700
Value Equity Fund ............. 6,597,012 16,409,509 23,006,521
The Funds may not realize the benefit of these losses to the extent each Fund
does not realize gains on investments prior to the expiration of the capital
loss carryovers.
7. OTHER
Effective October 31, 2003, the Small Cap Value Fund changed its name from
Phoenix-Hollister Small Cap Value Fund to Phoenix Small Cap Value Fund, and the
Value Equity Fund changed its names from Phoenix-Hollister Value Equity Fund to
Phoenix-Oakhurst Value Equity Fund. Also on this date, portfolio management for
the Small Cap Value Fund was assigned to Carlton Neel and David Dickerson, and
portfolio management for the Value Equity Fund was assigned to Steven L. Colton
and Dong Zhang. Prior to this date, both Funds were managed by Christian C.
Bertelsen and John LaForge, II.
8. SUBSEQUENT EVENT
On or about April 16, 2004, pursuant to an Agreement and Plan of
Reorganization, the Phoenix Appreciation Fund, a series of Phoenix Trust, will
transfer all or substantially all of its assets to the Phoenix Small Cap Value
Fund in exchange for shares of the Phoenix Small Cap Value Fund and the
assumption by the Phoenix Small Cap Value Fund of all liabilities of the Phoenix
Appreciation Fund. Following the exchange, the Phoenix Appreciation Fund will
distribute the shares of the Phoenix Small Cap Value Fund to its shareholders
pro rata, in liquidation of the Phoenix Appreciation Fund. The shareholders of
the Phoenix Appreciation Fund must approve the Plan of Reorganization before any
transaction can take place. The reconvened meeting of the shareholders of the
Phoenix Appreciation Fund will be held on April 15, 2004.
9. PROXY VOTING PROCEDURES
The advisers and subadvisers to each of the Phoenix-affiliated Funds vote
proxies relating to portfolio securities in accordance with procedures that have
been approved by the Board of Trustees of the Trust. You may obtain a
description of these procedures, free of charge, by calling toll-free
800-243-1574. This information is also available through the Securities and
Exchange Commission's website at http://www.sec.gov.
20
RESULTS OF SHAREHOLDER MEETINGS (UNAUDITED)
A special meeting of Shareholders of Phoenix Small Cap Value Fund was held on
January 27, 2004, for the following purpose:
1. To consider and act upon a proposal to approve a Subadvisory Agreement
between Phoenix Investment Counsel, Inc. and Phoenix/Zweig Advisers LLC.
On the record date of December 16, 2003, there were 12,462,109 shares
outstanding, representing 174,442,812 votes. Of the shares outstanding, 73.4%
were voted.
NUMBER OF VOTES
For Against Abstain
---------- -------- --------
1. To consider and act upon a proposal
to approve a Subadvisory Agreement
between Phoenix Investment Counsel,
Inc. and Phoenix/Zweig Advisers LLC. 122,252,065 1,727,747 4,036,525
21
FUND MANAGEMENT
Information pertaining to the Trustees and officers of the Trust is set
forth below. The statement of additional information (SAI) includes additional
information about the Trustees and is available without charge, upon request, by
calling (800) 243-4361.
The address of each individual, unless otherwise noted, is 56 Prospect
Street, Hartford, CT 06115-0480. There is no stated term of office for Trustees
of the Trust.
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS IN
FUND COMPLEX PRINCIPAL OCCUPATION(S)
NAME, ADDRESS LENGTH OF OVERSEEN BY DURING PAST 5 YEARS AND
AND DATE OF BIRTH TIME SERVED TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
E. Virgil Conway Served since 36 Chairman, Rittenhouse Advisors, LLC (consulting firm) since
Rittenhouse Advisors, LLC 1997. 2001. Trustee/Director, Realty Foundation of New York
101 Park Avenue (1972-present), Pace University (1978-present), New York
New York, NY 10178 Housing Partnership Development Corp. (Chairman)
DOB: 8/2/29 (1981-present), Greater New York Councils, Boy Scouts of
America (1985-present), The Academy of Political Science (Vice
Chairman) (1985-present), Urstadt Biddle Property Corp.
(1989-present), The Harlem Youth Development Foundation
(1998-2002). Chairman, Metropolitan Transportation Authority
(1992-2001). Director, Trism, Inc. (1994-2001), Consolidated
Edison Company of New York, Inc. (1970-2002), Atlantic Mutual
Insurance Company (1974-2002), Centennial Insurance Company
(1974-2002), Josiah Macy, Jr., Foundation (1975-present), Union
Pacific Corp. (1978-2002), BlackRock Freddie Mac Mortgage
Securities Fund (Advisory Director) (1990-2000), Accuhealth
(1994-2002).
- ------------------------------------------------------------------------------------------------------------------------------------
Harry Dalzell-Payne Served since 36 Currently retired.
The Flat, Elmore Court 1997.
Elmore, GL05, GL2 3NT
U.K.
DOB: 8/9/29
- ------------------------------------------------------------------------------------------------------------------------------------
Francis E. Jeffries Served since 29 Director, The Empire District Electric Company (1984-present).
8477 Bay Colony Dr. #902 1997. Director (1989-1997), Chairman of the Board (1993-1997),
Naples, FL 34108 Phoenix Investment Partners, Ltd.
DOB: 9/23/30
- ------------------------------------------------------------------------------------------------------------------------------------
Leroy Keith, Jr. Served since 26 Partner, Stonington Partners, Inc. (private equity fund) since
Stonington Partners, Inc. 2001. 2001. Chairman (1995 to 2000) and Chief Executive Officer
736 Market Street, Ste. 1430 (1995-1998), Carson Products Company (cosmetics).
Chattanooga, TN 37402 Director/Trustee, Evergreen Funds (six portfolios).
DOB: 2/14/39
- ------------------------------------------------------------------------------------------------------------------------------------
Geraldine M. McNamara Served since 36 Managing Director, U.S. Trust Company of New York (private
U.S. Trust Company of 1997. bank) (1982-present).
New York
11 West 54th Street
New York, NY 10019
DOB: 4/17/51
- ------------------------------------------------------------------------------------------------------------------------------------
22
FUND MANAGEMENT (CONTINUED)
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS IN
FUND COMPLEX PRINCIPAL OCCUPATION(S)
NAME, ADDRESS LENGTH OF OVERSEEN BY DURING PAST 5 YEARS AND
AND DATE OF BIRTH TIME SERVED TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
Everett L. Morris Served since 36 Currently retired. Vice President, W.H. Reaves and Company
164 Laird Road 1997. (investment management) (1993-2003).
Colts Neck, NJ 07722
DOB: 5/26/28
- ------------------------------------------------------------------------------------------------------------------------------------
Richard E. Segerson Served since 26 Managing Director, Northway Management Company (1998-present).
Northway Management Company 1997. Managing Director, Mullin Associates (1993-1998).
164 Mason Street
Greenwich, CT 06830
DOB: 2/16/46
- ------------------------------------------------------------------------------------------------------------------------------------
Lowell P. Weicker, Jr. Served since 26 Director, UST, Inc. (1995-present), HPSC Inc. (1995-present),
200 Duke Street 1997. Compuware (1996-present) and WWF, Inc. (2000-present).
Alexandria, VA 22314 President, The Trust for America's Health (non-profit)
DOB: 5/16/31 (2001-present). Director, Duty Free International, Inc.
(1997-1998).
- ------------------------------------------------------------------------------------------------------------------------------------
23
FUND MANAGEMENT (CONTINUED)
INTERESTED TRUSTEES
Each of the individuals listed below is an "interested person" of the
Trust, as defined in Section 2(a)(19) of the Investment Company Act of 1940, as
amended, and the rules and regulations thereunder.
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF
NAME, ADDRESS, PORTFOLIOS IN
DATE OF BIRTH FUND COMPLEX PRINCIPAL OCCUPATION(S)
AND POSITION(S) WITH LENGTH OF OVERSEEN BY DURING PAST 5 YEARS AND
TRUST TIME SERVED TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
*Marilyn E. LaMarche Served since 29 Limited Managing Director, Lazard Freres & Co. LLC
Lazard Freres & Co. LLC 2002. (1983-present). Director, The Phoenix Companies, Inc.
30 Rockefeller Plaza, (2001-present) and Phoenix Life Insurance Company
59th Floor (1989-present).
New York, NY 10020
DOB: 5/11/34
- ------------------------------------------------------------------------------------------------------------------------------------
**Philip R. McLoughlin Served since 76 Consultant, Phoenix Investment Partners Ltd. (2002-present).
DOB: 10/23/46 1997. Director, PXRE Corporation (Delaware) (1985-present), World
Trust Fund (1991-present). Chairman (1997-2002), Director
Chairman and President (1995-2002), Vice Chairman (1995-1997) and Chief Executive
Officer (1995-2002), Phoenix Investment Partners, Ltd. Director
and Executive Vice President, The Phoenix Companies, Inc.
(2000-2002). Director (1994-2002) and Executive Vice President,
Investments (1987-2002), Phoenix Life Insurance Company.
Director (1983-2002) and Chairman (1995-2002), Phoenix
Investment Counsel, Inc. Director (1982-2002) and President
(1990-2000), Phoenix Equity Planning Corporation. Chairman and
President, Phoenix/Zweig Advisers LLC (1999-2002). Director
(2001-2002) and President (April 2002-September 2002), Phoenix
Investment Management Company. Director and Executive Vice
President, Phoenix Life and Annuity Company (1996-2002).
Director (1995-2000) and Executive Vice President (1994-2002),
PHL Variable Insurance Company. Director, Phoenix National
Trust Holding Company (2001-2002). Director (1985-2002) and
Vice President (1986-2002), PM Holdings, Inc. Director, W.S.
Griffith Associates, Inc. (1995-2002). Director (1992-2002) and
President (1993-1994), W.S. Griffith Securities, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
***James M. Oates Served since 31 Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital
Hudson Castle Group, Inc. 1997. Markets Inc.) (financial services) (1997-present). Managing
c/o Northeast Investment Director, Wydown Group (consulting firm) (1994-present).
Management, Inc. Director, Investors Financial Service Corporation
50 Congress Street (1995-present), Investors Bank & Trust Corporation
Suite 1000 (1995-present), Plymouth Rubber Co. (1995-present), Stifel
Boston, MA 02109 Financial (1996-present), Connecticut River Bancorp
DOB: 5/31/46 (1998-present), Connecticut River Bank (1998-present), 1Mind,
Inc. (1999-present) and 1Mind.com (2000-present). Director and
Treasurer, Endowment for Health, Inc. (2000-present). Chairman,
Emerson Investment Management, Inc. (2000-present). Member,
Chief Executives Organization (1996-present). Vice Chairman,
Massachusetts Housing Partnership (1998-1999). Director, Blue
Cross and Blue Shield of New Hampshire (1994-1999), AIB Govett
Funds (1991-2000) and Command Systems, Inc. (1998-2000).
Director, Phoenix Investment Partners, Ltd. (1995-2001).
- ------------------------------------------------------------------------------------------------------------------------------------
<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
Phoenix Investment Partners, Ltd. and its affiliates.
*** Mr. Oates is being treated as an Interested Trustee due to certain relationships existing among Mr. Oates, Hudson Castle Group,
Inc. and The Phoenix Companies, Inc. and certain of its affiliates.
</FN>
24
FUND MANAGEMENT (CONTINUED)
OFFICERS OF THE TRUST WHO ARE NOT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
POSITION(S) HELD WITH
NAME, ADDRESS AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S)
DATE OF BIRTH TIME SERVED DURING PAST 5 YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
William R. Moyer Executive Vice President Executive Vice President (1999-present) Senior Vice President
DOB: 8/16/44 since 1997. (1995-1999), Chief Financial Officer (1995-present), Phoenix Investment
Partners, Ltd. Director (1998-present), Executive Vice President, Chief
Financial Officer and Treasurer (2000-present), Senior Vice President
and Chief Financial Officer (1996-2000), Phoenix Equity Planning
Corporation. Director (1998-present), Senior Vice President, Chief
Financial Officer and Treasurer (1996-present), Phoenix Investment
Counsel, Inc. Director (2000-present), Executive Vice President
(2000-present), Treasurer (1996-present), Senior Vice President
(2000-2002), Duff & Phelps Investment Management Co. Executive Vice
President, Phoenix Fund Complex (1990-present).
- ------------------------------------------------------------------------------------------------------------------------------------
John F. Sharry Executive Vice President Executive Vice President, Phoenix Investment Partners, Ltd.
DOB: 3/28/52 since 1998. (1998-present), President, Phoenix Equity Planning Corporation
(2000-present). Executive Vice President, Phoenix Fund Complex
(1998-present).
- ------------------------------------------------------------------------------------------------------------------------------------
Nancy G. Curtiss Treasurer since 1997. Vice President, Fund Accounting (1994-2000), Treasurer (1996-2000),
DOB: 11/24/52 Assistant Treasurer (2001-2003), Vice President, Operations
(2003-present), Phoenix Equity Planning Corporation. Treasurer, Phoenix
Fund Complex (1994-present).
- ------------------------------------------------------------------------------------------------------------------------------------
Richard J. Wirth Secretary since 2002; Vice President and Insurance and Investment Products Counsel
One American Row Chief Legal Officer (2002-present), Counsel (1993-2002), Phoenix Life Insurance Company.
Hartford, CT 06102 since 2003. Director (2003-present), President (2003-present), Assistant Secretary
DOB: 11/14/58 (2002-present), Phoenix Variable Advisors, Inc. Secretary
(2002-present), Chief Legal Officer (2003-present), Phoenix Fund
Complex.
- ------------------------------------------------------------------------------------------------------------------------------------
25
PHOENIX INVESTMENT TRUST 97
101 Munson Street
Greenfield, Massachusetts 01301
TRUSTEES
E. Virgil Conway
Harry Dalzell-Payne
Francis E. Jeffries
Leroy Keith, Jr.
Marilyn E. LaMarche
Philip R. McLoughlin
Geraldine M. McNamara
Everett L. Morris
James M. Oates
Richard E. Segerson
Lowell P. Weicker, Jr.
OFFICERS
Philip R. McLoughlin, Chairman and President
William R. Moyer, Executive Vice President
John F. Sharry, Executive Vice President
Nancy G. Curtiss, Treasurer
Richard J. Wirth, Chief Legal Officer and Secretary
INVESTMENT ADVISER
Phoenix Investment Counsel, Inc.
56 Prospect Street
Hartford, Connecticut 06115-0480
PRINCIPAL UNDERWRITER
Phoenix Equity Planning Corporation
56 Prospect Street
Hartford, Connecticut 06115-0480
CUSTODIAN
State Street Bank and Trust Company
P.O. Box 5501
Boston, Massachusetts 02206-5501
TRANSFER AGENT
Phoenix Equity Planning Corporation
56 Prospect Street
Hartford, Connecticut 06115-0480
INDEPENDENT AUDITORS
PricewaterhouseCoopers LLP
125 High Street
Boston, Massachusetts 02110
HOW TO CONTACT US
Mutual Fund Services 1-800-243-1574
Advisor Consulting Group 1-800-243-4361
Text Telephone 1-800-243-1926
Web site PHOENIXINVESTMENTS.COM
- --------------------------------------------------------------------------------
IMPORTANT NOTICE TO SHAREHOLDERS
The Securities and Exchange Commission has modified mailing regulations for
semiannual and annual shareholder fund reports to allow mutual fund companies to
send a single copy of these reports to shareholders who share the same mailing
address. If you would like additional copies, please call Mutual Fund Services
at 1-800-243-1574.
- --------------------------------------------------------------------------------
(This page has been left blank intentionally.)
(This page has been left blank intentionally.)
PRESORTED
STANDARD
U.S.
POSTAGE
PAID
Louisville, KY
Permit No. 1051
PHOENIX EQUITY PLANNING CORPORATION
P.O. Box 150480
Hartford, CT 06115-0480
[LOGO OMITTED]
PHOENIX
INVESTMENT PARTNERS, LTD.
A MEMBER OF THE PHOENIX COMPANIES, INC.
For more information about Phoenix mutual funds, please call your financial
representative or contact us at 1-800-243-4361 or PHOENIXINVESTMENTS.COM.
NOT INSURED BY FDIC/NCUA OR ANY FEDERAL GOVERNMENT AGENCY.
NO BANK GUARANTEE. NOT A DEPOSIT. MAY LOSE VALUE.
PXP 214 (4/04)
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's board of directors, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR
240.14a-101), or this Item.
ITEM 10. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these
controls and procedures required by Rule 30a-3(b) under the 1940 Act
(17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the
Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) Phoenix Investment Trust 97
-------------------------------------------------------------------
By (Signature and Title)* /s/ Philip R. Mc Loughlin
-------------------------------------------------------
Philip R. McLoughlin, Chairman
(principal executive officer)
Date APRIL 30, 2004
-------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Philip R. McLoughlin
-------------------------------------------------------
Philip R. McLoughlin, Chairman
(principal executive officer)
Date APRIL 30, 2004
-------------------------------------------------------
By (Signature and Title)* /s/ Nancy G. Curtiss
-------------------------------------------------------
Nancy G. Curtiss, Treasurer
(principal financial officer)
Date APRIL 30, 2004
-------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.