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 811-07643
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Phoenix Pholios(SM)
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(Exact name of registrant as specified in charter)
101 Munson Street
Greenfield, MA 01301-9668
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(Address of principal executive offices) (Zip code)
Kevin J. Carr, Esq.
Vice President, Chief Legal Officer, John H. Beers, Esq.
Counsel and Secretary for Registrant Vice President and Counsel
Phoenix Life Insurance Company Phoenix Life Insurance Company
One American Row One American Row
Hartford, CT 06103-2899 Hartford, CT 06103-2899
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(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 243-1574
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Date of fiscal year end: July 31
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Date of reporting period: July 31, 2007
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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, 100 F Street, NE,
Washington, DC 20549. The OMB has reviewed this collection of information under
the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
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[LOGO]
PHOENIX
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ANNUAL REPORT
PHOENIX ASSET ALLOCATION PHOLIOS
Phoenix Wealth Accumulator PHOLIO
Phoenix Wealth Builder PHOLIO
Phoenix Wealth Guardian PHOLIO
PHOENIX DIVERSIFYING PHOLIOS
Phoenix Diversifier PHOLIO
WOULDN'T YOU RATHER HAVE THIS DOCUMENT
E-MAILED TO YOU?
TRUST NAME: ELIGIBLE SHAREHOLDERS CAN SIGN UP FOR
PHOENIX PHOLIOs(SM) July 31, 2007 E-DELIVERY AT PHOENIXFUNDS.COM
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NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
TABLE OF CONTENTS
Message from the President ................................................ 1
Glossary .................................................................. 2
Fund Composition Table .................................................... 3
Disclosure of Fund Expenses ............................................... 4
Phoenix Wealth Accumulator PHOLIO ......................................... 5
Phoenix Wealth Builder PHOLIO ............................................. 11
Phoenix Wealth Guardian PHOLIO ............................................ 17
Phoenix Diversifier PHOLIO ................................................ 23
Notes to Financial Statements ............................................. 29
Report of Independent Registered Public Accounting Firm ................... 33
Board of Trustees' Consideration of Investment Advisory Agreements ........ 34
Results of Shareholder Meetings ........................................... 36
Fund Management Tables .................................................... 38
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PROXY VOTING PROCEDURES (FORM N-PX)
The adviser and subadvisers vote proxies relating to portfolio securities in
accordance with procedures that have been approved by the Trust's Board of
Trustees. You may obtain a description of these procedures, along with
information regarding how the Funds voted proxies during the most recent
12-month period ended June 30, 2007, free of charge, by calling toll-free
1-800-243-1574. This information is also available through the Securities and
Exchange Commission's website at http://www.sec.gov.
FORM N-Q INFORMATION
The Trust files a complete schedule of portfolio holdings for each fund with the
Securities and Exchange Commission (the "SEC") for the first and third quarters
of each fiscal year on Form N-Q. Form N-Q is available on the SEC's website at
http://www.sec.gov. Form N-Q may be reviewed and copied at the SEC's Public
Reference Room. Information on the operation of the SEC's Public Reference Room
can be obtained by calling toll-free 1-800-SEC-0330.
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This report is not authorized for distribution to prospective investors in the
Phoenix PHOLIOs(SM) unless preceded or accompanied by an effective prospectus
which includes information concerning the sales charge, each Fund's record and
other pertinent information.
MESSAGE FROM THE PRESIDENT
DEAR PHOENIXFUNDS SHAREHOLDER:
[PHOTO OMITTED]
We are pleased to provide this report for the fiscal year ended July 31,
2007. It includes valuable information about your Phoenix mutual fund(s)--such
as performance and fee-related data and information about each fund's portfolio
holdings and transactions for the reporting period. The report also provides
commentary from your fund's management team with respect to the fund's
performance, its investment strategies, and how the fund performed against the
broader market.
At Phoenix, we are committed to helping investors succeed over the long
term and we strive to provide investors with choice. The Phoenix family of funds
offers a wide array of investment options to help make diversification easy. Our
multi-manager, multi-style approach gives you access to a complete suite of
investment products, including numerous equity, fixed income and money market
funds.
We are proud to offer this diversified portfolio of funds managed by more
than a dozen accomplished investment managers--many of whom were previously only
available to large institutional investors. Their investment expertise allows us
to offer a variety of styles, including growth, value and core products, along
with asset allocation funds and alternative investments.
Phoenix is also committed to providing you best-in-class service. Whether
you need to check your account value or transfer funds, our customer service
team stands ready to provide superior, dependable assistance to help you make
informed decisions.
Because we offer such an extensive selection of investment options, it's
important that you consult an experienced financial professional for help
reviewing or rebalancing your portfolio on a regular basis. A regular "checkup"
can be an excellent way to help ensure that your investments are aligned with
your financial goals.
As president of Phoenix Investment Partners, Ltd., I would like to thank
you for entrusting your assets with us. It's our privilege to serve you.
Sincerely yours,
/s/ George R. Aylward
George R. Aylward
President, PhoenixFunds
AUGUST 2007
1
GLOSSARY
DOW JONES-AIG COMMODITY INDEX
The Dow Jones-AIG Commodity Index is a broadly diversified index that tracks
commodity futures.
EXCHANGE TRADED FUNDS (ETF)
Portfolios of stocks or bonds that track a specific market index.
FUND OF FUNDS
A mutual fund that invests in the shares of other open-end mutual funds
according to an established asset allocation model, resulting in a diversified
portfolio of asset classes and investment strategies appropriate for pursuit of
the overall investment objective.
iSHARES
Represents shares of an open-end Exchange Traded Fund.
LEHMAN BROTHERS AGGREGATE BOND INDEX
The Lehman Brothers Aggregate Bond Index measures the U.S. investment grade
fixed rate bond market. The index is calculated on a total return basis.
LEHMAN BROTHERS HIGH YIELD INDEX
Measures fixed rate non-investment grade debt securities of U.S. and non-U.S.
corporations. The index is calculated on a total return basis.
MSCI EAFE(R) INDEX
The MSCI EAFE(R) Index is a free float-adjusted market capitalization index
that measures developed foreign market equity performance, excluding the U.S.
and Canada. The index is calculated on a total return basis with gross dividends
reinvested.
REIT (REAL ESTATE INVESTMENT TRUST)
A publicly traded company that owns, develops and operates income-producing real
estate such as apartments, office buildings, hotels, shopping centers and other
commercial properties.
RUSSELL 2000(R) INDEX
The Russell 2000(R) Index is a market capitalization-weighted index of the
2,000 smallest companies in the Russell Universe, which comprises the 3,000
largest U.S. companies. The index is calculated on a total return basis with
dividends reinvested.
S&P 500(R) INDEX
The S&P 500 Index is a free-float market capitalization-weighted index of 500 of
the largest U.S. companies. The index is calculated on a total return basis with
dividends reinvested.
WEALTH BUILDER PHOLIO COMPOSITE INDEX
A composite index consisting of 80% S&P 500(R) Index and 20% Lehman Brothers
Aggregate Bond Index.
WEALTH GUARDIAN PHOLIO COMPOSITE INDEX
A composite index consisting of 60% S&P 500 Index and 40% Lehman Brothers
Aggregate Bond Index.
YIELD CURVE
A line chart that shows interest rates at a specific point in time for
securities of equivalent quality but with different maturities. A "normal or
positive" yield curve indicates that short-term securities have a lower interest
rate than long-term securities; an "inverted or negative" yield curve indicates
short-term rates are exceeding long-term rates; and a "flat yield curve" means
short- and long-term rates are about the same.
INDEXES ARE UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT; THEREFORE, THEIR
PERFORMANCE DOES NOT REFLECT THE EXPENSES ASSOCIATED WITH THE ACTIVE MANAGEMENT
OF AN ACTUAL PORTFOLIO.
2
COMPOSITION BY UNDERLYING FUND*
AS A PERCENTAGE OF TOTAL LONG TERM INVESTMENTS
AS OF JULY 31, 2007
Wealth Wealth Wealth
Accumulator Builder Guardian Diversifier
PHOLIO PHOLIO PHOLIO PHOLIO
----------- ------- -------- -----------
iShares S&P GSSI Natural Resources Index Fund .................... 0.0% 0.0% 0.0% 9.7%
PowerShares DB Commodity Index Tracking Fund ..................... 0.0% 0.0% 0.0% 16.0%
Phoenix Bond Fund Class A ........................................ 0.0% 7.8% 16.3% 0.0%
Phoenix Capital Growth Fund Class A .............................. 8.0% 5.6% 4.6% 0.0%
Phoenix Dynamic Growth Fund Class A .............................. 5.0% 4.1% 2.9% 0.0%
Phoenix Foreign Opportunities Fund Class A ....................... 8.4% 6.3% 4.3% 0.0%
Phoenix Global Utilities Fund Class A ............................ 3.8% 4.1% 2.1% 25.9%
Phoenix Growth & Income Fund Class A ............................. 14.6% 10.9% 8.5% 0.0%
Phoenix Growth Opportunities Fund Class A ........................ 7.5% 5.8% 4.6% 0.0%
Phoenix Insight High Yield Bond Fund Class A ..................... 0.0% 1.9% 3.8% 0.0%
Phoenix Institutional Bond Fund Class Y .......................... 0.0% 8.0% 15.2% 0.0%
Phoenix International Strategies Fund Class A .................... 12.7% 9.9% 7.8% 0.0%
Phoenix Market Neutral Fund Class A .............................. 6.9% 7.1% 6.4% 15.8%
Phoenix Mid-Cap Value Fund Class A ............................... 5.1% 4.0% 3.1% 0.0%
Phoenix Multi-Sector Short Term Bond Fund Class A ................ 0.0% 2.1% 3.8% 9.6%
Phoenix Quality Small-Cap Fund Class A ........................... 2.3% 1.9% 1.5% 0.0%
Phoenix Real Estate Securities Fund Class A ...................... 4.2% 3.9% 1.9% 23.0%
Phoenix Small-Cap Growth Fund Class A ............................ 2.5% 2.0% 1.5% 0.0%
Phoenix Small-Cap Sustainable Growth Fund Class A ................ 2.3% 1.9% 1.5% 0.0%
Phoenix Small-Cap Value Fund Class A ............................. 2.4% 1.9% 1.5% 0.0%
Phoenix Value Opportunities Fund Class A ......................... 14.3% 10.8% 8.7% 0.0%
----- ----- ----- -----
Total ......................................................... 100.0% 100.0% 100.0% 100.0%
===== ===== ===== =====
* Table represents each PHOLIO's holdings in the underlying funds as a
percentage of total investments. Financial information and investment
strategies for the underlying affiliated funds may be obtained at
www.PhoenixFunds.com.
3
PHOENIX PHOLIOS
ABOUT YOUR FUND'S EXPENSES (UNAUDITED)
(FOR THE SIX-MONTH PERIOD OF FEBRUARY 1, 2007 TO JULY 31, 2007)
We believe it is important for you to understand the impact of costs on
your investment. All mutual funds have operating expenses. As a shareholder of
the Phoenix PHOLIOs, you incur two types of costs: (1) transaction costs,
including sales charges on purchase of Class A Shares and contingent deferred
sales charges on Class C Shares, if applicable; and (2) ongoing costs, including
investment advisory fees; distribution and service fees; and other expenses.
These examples are intended to help you understand your ongoing costs (in
dollars) of investing in a Phoenix PHOLIO and to compare these costs with the
ongoing costs of investing in other mutual funds. These examples are based on an
investment of $1,000 invested at the beginning of the period and held for the
entire six-month period. The following expense tables illustrate your Fund's
costs in two ways.
ACTUAL EXPENSES
This section of the accompanying tables provides information about actual
account values and actual expenses. You may use the information in this section,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number given for your fund under the heading entitled "Expenses Paid During
Period" to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
This section of the accompanying tables provides information about
hypothetical account values and hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return of 5% per year before expenses,
which is not your Fund's actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare the
ongoing costs of investing in your Fund and other funds. To do so, compare these
5% hypothetical examples with the 5% hypothetical examples that appear in the
shareholder reports of the other funds.
Please note that the expenses shown in the accompanying tables are meant
to highlight your ongoing costs only and do not reflect any transactional costs,
such as sales charges or contingent deferred sales charges. Therefore, the
second section of the accompanying tables is useful in comparing ongoing costs
only, and will not help you determine the relative total costs of owning
different funds. In addition, if these transactional costs were included, your
costs would have been higher. These calculations assume no shares were bought or
sold during the period. Your actual costs may have been higher or lower,
depending on the amount of your investment and the timing of any purchases or
redemptions.
EXPENSE TABLE
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Beginning Ending Expenses
Account Account Annualized Paid
Value Value Expense During
2/1/07 7/31/07 Ratio Period*
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WEALTH ACCUMULATOR PHOLIO
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ACTUAL
Class A ................................ $1,000.00 $1,036.70 0.07% $0.35
Class C ................................ 1,000.00 1,032.50 0.81 4.08
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
Class A ................................ 1,000.00 1,024.44 0.07 0.35
Class C ................................ 1,000.00 1,020.73 0.81 4.07
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WEALTH BUILDER PHOLIO
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ACTUAL
Class A ................................ $1,000.00 $1,028.30 0.06% $0.30
Class C ................................ 1,000.00 1,024.80 0.81 4.07
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
Class A ................................ 1,000.00 1,024.49 0.06 0.30
Class C ................................ 1,000.00 1,020.73 0.81 4.07
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WEALTH GUARDIAN PHOLIO
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ACTUAL
Class A ................................ $1,000.00 $1,026.30 0.07% $0.35
Class C ................................ 1,000.00 1,022.70 0.81 4.06
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
Class A ................................ 1,000.00 1,024.44 0.07 0.35
Class C ................................ 1,000.00 1,020.73 0.81 4.07
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DIVERSIFIER PHOLIO
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ACTUAL
Class A ................................ $1,000.00 $ 984.60 0.27% $1.33
Class C ................................ 1,000.00 981.40 1.02 5.01
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
Class A ................................ 1,000.00 1,023.44 0.27 1.36
Class C ................................ 1,000.00 1,019.67 1.02 5.12
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* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO, WHICH IS NET OF
WAIVED FEES AND REIMBURSED EXPENSES, IF APPLICABLE, MULTIPLIED BY THE
AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY THE NUMBER OF DAYS
(181) EXPENSES WERE ACCRUED IN THE MOST RECENT FISCAL HALF-YEAR, THEN
DIVIDED BY 365 TO REFLECT THE ONE-HALF YEAR PERIOD.
THE ANNUALIZED EXPENSE RATIOS NOTED ABOVE DO NOT REFLECT FEES AND EXPENSES
ASSOCIATED WITH THE UNDERLYING FUNDS. IF SUCH FEES AND EXPENSES HAD BEEN
INCLUDED, THE EXPENSES WOULD HAVE BEEN HIGHER.
YOU CAN FIND OUT MORE INFORMATION ABOUT THE FUNDS' EXPENSES IN THE
FINANCIAL STATEMENTS SECTION THAT FOLLOWS. FOR ADDITIONAL INFORMATION ON
OPERATING EXPENSES AND OTHER SHAREHOLDER COSTS REFER TO THE PROSPECTUS.
4
PHOENIX WEALTH ACCUMULATOR PHOLIO
VIEWPOINT FROM THE FUND'S OVERSIGHT MANAGER, CHRISTOPHER WILKOS, CFA
For the Fund's fiscal year ended July 31, 2007,
o Class A shares returned 16.75%;
o Class C shares returned 15.85%;
o the S&P 500(R) Index, a broad-based equity index, returned 16.13%.
ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE
EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND
CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE.
Q: HOW DID THE MARKETS PERFORM DURING THE FUND'S FISCAL YEAR?
A: During the fund's fiscal year, equity markets performed very well. The
Standard & Poor's 500 index rose over 16%, while the Russell 2000 Index of small
capitalization stocks rose over 13%. International markets had outstanding
performance as the MSCI EAFE Index rose 24.4% in the fiscal year. One of the
only negative sectors of equity performance was the REIT market which fell
slightly in the fiscal year.
Q: WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR?
A: The fund's substantial exposure to equity markets drove performance during
the fiscal year. The Fund benefited from a diversified exposure to both U.S. and
foreign equities, and large, mid and small capitalization styles. Performance
was negatively impacted by allocations to a market neutral fund and a small
allocation to a REIT fund.
THE PRECEDING INFORMATION IS THE OPINION OF PORTFOLIO MANAGEMENT. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS, AND THERE IS NO GUARANTEE THAT
MARKET FORECASTS WILL BE REALIZED.
FOR DEFINITIONS OF INDEXES CITED IN THIS REPORT, SEE THE GLOSSARY ON PAGE 2.
5
Phoenix Wealth Accumulator PHOLIO
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AVERAGE ANNUAL TOTAL RETURNS 1 PERIODS ENDING 7/31/07
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INCEPTION INCEPTION
1 YEAR TO 7/31/07 DATE
------- ---------- ---------
Class A Shares at NAV 2 16.75% 12.27% 8/4/05
Class A Shares at POP 3,4 10.04 8.97 8/4/05
Class C Shares at NAV 2 15.85 11.39 8/4/05
Class C Shares with CDSC 4 15.85 11.39 8/4/05
S&P 500(R) Index 16.13 10.60 8/4/05
ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS.
CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. 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. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT
A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES.
PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT
MONTH-END.
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 CLASS
C SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE.
CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL REDEMPTIONS
OF CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER.
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GROWTH OF $10,000 PERIODS ENDING 7/31
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This Growth of $10,000 chart assumes an initial investment of $10,000 made on
8/4/05 (inception of the Fund) in Class A 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 C shares includes applicable CDSC charges
since inception. Performance assumes dividends and capital gain distributions
are reinvested.
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Phoenix Wealth Phoenix Wealth
Accumulator PHOLIO(SM) Accumulator PHOLIO(SM)
Class A Class C S&P 500(R) Index
8/4/2005 $ 9,425 $ 10,000 $ 10,000
7/31/2006 $ 10,162 $ 10,697 $ 10,522
7/31/2007 $ 11,864 $ 12,393 $ 12,219
For information regarding the index, see the glossary on page 2.
6
Phoenix Wealth Accumulator PHOLIO
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FUND INVESTMENT ALLOCATION 7/31/07
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As a percentage of total investments
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Domestic Equity Funds 75%
Foreign Equity Funds 25
SCHEDULE OF INVESTMENTS
JULY 31, 2007
SHARES VALUE
-------- ------------
MUTUAL FUNDS--99.7%
DOMESTIC EQUITY FUNDS(c)--74.8%
Phoenix Capital Growth Fund Class A(b) ........... 59,986 $ 1,000,571
Phoenix Dynamic Growth Fund Class A(b) ........... 50,687 624,461
Phoenix Growth & Income Fund Class A ............. 103,098 1,838,240
Phoenix Growth Opportunities Fund Class A(b) ..... 66,043 948,384
Phoenix Market Neutral Fund Class A .............. 79,714 864,099
Phoenix Mid-Cap Value Fund Class A ............... 24,507 647,721
Phoenix Quality Small-Cap Fund Class A ........... 25,291 287,052
Phoenix Real Estate Securities Fund Class A ...... 17,369 528,718
Phoenix Small-Cap Growth Fund Class A(b) ......... 8,752 318,577
Phoenix Small-Cap Sustainable Growth Fund
Class A(b) ....................................... 28,802 291,184
Phoenix Small-Cap Value Fund Class A ............. 18,226 295,809
Phoenix Value Opportunities Fund Class A ......... 139,219 1,797,312
------------
9,442,128
------------
SHARES VALUE
-------- ------------
FOREIGN EQUITY FUNDS(c)--24.9%
Phoenix Foreign Opportunities Fund Class A ....... 40,121 $ 1,061,595
Phoenix Global Utilities Fund Class A ............ 38,002 483,383
Phoenix International Strategies Fund Class A .... 104,275 1,593,324
------------
3,138,302
------------
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TOTAL MUTUAL FUNDS
(IDENTIFIED COST $11,706,874) 12,580,430
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TOTAL INVESTMENTS--99.7%
(IDENTIFIED COST $11,706,874) 12,580,430(a)
Other assets and liabilities, net--0.3% 42,692
------------
NET ASSETS--100.0% $ 12,623,122
============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $941,769 and gross
depreciation of $102,733 for federal income tax purposes. At July 31,
2007, the aggregate cost of securities for federal income tax purposes was
$11,741,394.
(b) Non-income producing.
(c) Affiliated Fund.
See Notes to Financial Statements 7
Phoenix Wealth Accumulator PHOLIO
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 2007
ASSETS
Investment in affiliated funds at value
(Identified cost $11,706,874) $ 12,580,430
Cash 58,038
Receivables
Receivable from adviser 6,234
Fund shares sold 3,335
Trustee retainer 56
Prepaid expenses 7,549
Other assets 980
------------
Total assets 12,656,622
------------
LIABILITIES
Payables
Fund shares repurchased 4,134
Professional fee 19,760
Distribution and service fees 2,534
Transfer agent fee 2,483
Trustee deferred compensation plan 980
Administration fee 898
Other accrued expenses 2,711
------------
Total liabilities 33,500
------------
NET ASSETS $ 12,623,122
============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 11,602,600
Undistributed net investment income 40,382
Accumulated net realized gain 106,584
Net unrealized appreciation 873,556
------------
NET ASSETS $ 12,623,122
============
CLASS A
Net asset value per share (net assets/shares outstanding) $ 12.16
Maximum offering price per share $12.16/(1-5.75%) $ 12.90
Shares of beneficial interest outstanding, no par value,
unlimited authorization 724,198
Net Assets $ 8,805,576
CLASS C
Net asset value and offering price per share $ 12.09
Shares of beneficial interest outstanding, no par value,
unlimited authorization 315,678
Net Assets $ 3,817,546
STATEMENT OF OPERATIONS
YEAR ENDED JULY 31, 2007
INVESTMENT INCOME
Income distributions received from affiliated funds $ 77,662
Interest 4,021
------------
Total investment income 81,683
------------
EXPENSES
Investment advisory fee 9,688
Distribution and service fees, Class C 25,876
Administration fee 8,021
Transfer agent 16,478
Registration 24,509
Professional 23,229
Custodian 9,383
Printing 2,988
Trustees 1,992
Miscellaneous 1,580
------------
Total expenses 123,744
Less expenses reimbursed by investment adviser (91,380)
Custodian fees paid indirectly (1,423)
------------
Net expenses 30,941
------------
NET INVESTMENT INCOME (LOSS) 50,742
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments from affiliated funds (241,878)
Capital gain distributions received from affiliated funds 613,165
Net change in unrealized appreciation (depreciation) on
investments from affiliated funds 794,254
------------
NET GAIN (LOSS) ON INVESTMENTS FROM AFFILIATED FUNDS 1,165,541
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 1,216,283
============
8 See Notes to Financial Statements
Phoenix Wealth Accumulator PHOLIO
STATEMENT OF CHANGES IN NET ASSETS
From Inception
Year Ended August 4, 2005 to
July 31, 2007 July 31, 2006
------------- -----------------
FROM OPERATIONS
Net investment income (loss) $ 50,742 $ 9,731
Net realized gain (loss) 371,287 12,193
Net change in unrealized appreciation (depreciation) 794,254 79,302
------------- -----------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 1,216,283 101,226
------------- -----------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (189,641) (6,985)
Net investment income, Class C (74,217) (1,149)
Net realized short-term gains, Class A (106) --
Net realized short-term gains, Class C (58) --
Net realized long-term gains, Class A (15,689) --
Net realized long-term gains, Class C (9,142) --
------------- -----------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (288,853) (8,134)
------------- -----------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (472,061 and 324,331 shares, respectively) 5,598,753 3,409,647
Net asset value of shares issued from reinvestment of distributions (16,703 and 421 shares,
respectively) 197,379 4,371
Cost of shares repurchased (63,594 and 25,724 shares, respectively) (735,444) (273,919)
------------- -----------------
Total 5,060,688 3,140,099
------------- -----------------
CLASS C
Proceeds from sales of shares (161,587 and 230,141 shares, respectively) 1,863,220 2,430,767
Net asset value of shares issued from reinvestment of distributions (6,343 and 41 shares,
respectively) 73,479 428
Cost of shares repurchased (75,010 and 7,424 shares, respectively) (888,145) (77,936)
------------- -----------------
Total 1,048,554 2,353,259
------------- -----------------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 6,109,242 5,493,358
------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS 7,036,672 5,586,450
NET ASSETS
Beginning of period 5,586,450 --
------------- -----------------
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $40,382
AND $4,289, RESPECTIVELY) $ 12,623,122 $ 5,586,450
============= =================
See Notes to Financial Statements 9
Phoenix Wealth Accumulator PHOLIO
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS A
---------------------------------
FROM INCEPTION
YEAR ENDED AUGUST 4, 2005 TO
JULY 31, 2007 JULY 31, 2006
------------- -----------------
Net asset value, beginning of period $ 10.73 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(3) 0.10 0.07
Capital gain distributions received from affiliated funds(3) 0.76 0.11
Net realized and unrealized gain (loss) 0.92 0.60
-------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.78 0.78
-------- --------
LESS DISTRIBUTIONS
Dividends from net investment income (0.32) (0.05)
Distributions from net realized gains (0.03) --
-------- --------
TOTAL DISTRIBUTIONS (0.35) (0.05)
-------- --------
Change in net asset value 1.43 0.73
-------- --------
NET ASSET VALUE, END OF PERIOD $ 12.16 $ 10.73
======== ========
Total return(1) 16.75% 7.82%(6)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $ 8,806 $ 3,208
RATIO TO AVERAGE NET ASSETS OF:
Net operating expenses(2) 0.06% 0.09%(4)(5)
Gross operating expenses(2) 0.97% 7.43%(5)
Net investment income (loss) 0.79% 0.63%(5)
Portfolio turnover 50% 13%(6)
CLASS C
---------------------------------
FROM INCEPTION
YEAR ENDED AUGUST 4, 2005 TO
JULY 31, 2007 JULY 31, 2006
------------- -----------------
Net asset value, beginning of period $ 10.68 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(3) --(7) (0.01)
Capital gain distributions received from affiliated funds(3) 0.74 0.10
Net realized and unrealized gain (loss) 0.94 0.61
-------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.68 0.70
-------- --------
LESS DISTRIBUTIONS
Dividends from net investment income (0.24) (0.02)
Distributions from net realized gains (0.03) --
-------- --------
TOTAL DISTRIBUTIONS (0.27) (0.02)
-------- --------
Change in net asset value 1.41 0.68
-------- --------
NET ASSET VALUE, END OF PERIOD $ 12.09 $ 10.68
======== ========
Total return(1) 15.85% 6.97 %(6)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $ 3,818 $ 2,379
RATIO TO AVERAGE NET ASSETS OF:
Net operating expenses(2) 0.80% 0.83 %(4)(5)
Gross operating expenses(2) 1.79% 8.19 %(5)
Net investment income (loss) 0.04% (0.12)%(5)
Portfolio turnover 50% 13 %(6)
(1) Sales charges are not reflected in the total return calculation.
(2) The Fund also will indirectly bear its prorated share of expenses of the
underlying funds. Such expenses are not included in the calculation of
this ratio.
(3) Computed using average shares outstanding.
(4) Represents blended net expense ratio.
(5) Annualized.
(6) Not annualized.
(7) Amount is less than $0.01.
10 See Notes to Financial Statements
PHOENIX WEALTH BUILDER PHOLIO
VIEWPOINT FROM THE FUND'S OVERSIGHT MANAGER, CHRISTOPHER WILKOS, CFA
For the Fund's fiscal year ended July 31, 2007,
o Class A shares returned 14.16%;
o Class C shares returned 13.29%;
o the S&P (500)(R) Index, a broad-based equity index, returned 16.13%;
o the Lehman Brothers Aggregate Bond Index, a broad-based fixed income
index, returned 5.58%;
o the Wealth Builder PHOLIO Composite Index (80% S&P(R) Index and 20%
Lehman Brothers Aggregate Bond Index), the PHOLIO's style-specific
benchmark, returned 14.01%.
ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE
EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND
CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE.
Q: HOW DID THE MARKETS PERFORM DURING THE FUND'S FISCAL YEAR?
A: During the fund's fiscal year, equity markets performed very well. The
Standard & Poor's 500 index rose over 16%, while the Russell 2000 Index of small
capitalization stocks rose over 13%. International markets had outstanding
performance as the MSCI EAFE Index rose 24.4% in the fiscal year. One of the
only negative sectors of equity performance was the REIT market which fell
slightly in the fiscal year.
In the fixed income markets, returns were in the solid single digits. The
Lehman Brothers Aggregate bond index posted a return of 5.58% for the fiscal
year, while the Lehman Brothers High Yield index returned 6.56%. Interest rates,
as measured by U.S. treasury security yields, fell between 15 and 40 basis
points during the fiscal year.
Q: WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR?
A: The fund's substantial exposure to equity markets drove performance during
the fiscal year. The Fund benefited from a diversified exposure to both U.S. and
foreign equities, and large, mid and small capitalization styles. Equity market
returns around the globe were quite strong as described above. The Fund's
performance was negatively impacted by an allocation to a market neutral fund
and a small allocation to a REIT fund. The fund also contains a 20% targeted
allocation to fixed income funds. Given the lower returns in the fixed income
markets, the Fund's performance reflects the blend of both equity and fixed
income returns.
THE PRECEDING INFORMATION IS THE OPINION OF PORTFOLIO MANAGEMENT. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS, AND THERE IS NO GUARANTEE THAT
MARKET FORECASTS WILL BE REALIZED.
FOR DEFINITIONS OF INDEXES CITED IN THIS REPORT, SEE THE GLOSSARY ON PAGE 2.
11
Phoenix Wealth Builder PHOLIO
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS 1 PERIODS ENDING 7/31/07
- --------------------------------------------------------------------------------
INCEPTION INCEPTION
1 YEAR TO 7/31/07 DATE
------- ---------- ----------
Class A Shares at NAV 2 14.16% 10.35% 8/1/03
Class A Shares at POP 3,4 7.59 8.73 8/1/03
Class C Shares at NAV 2 13.29 9.54 8/1/03
Class C Shares with CDSC 4 13.29 9.54 8/1/03
S&P 500(R) Index 16.13 12.39 8/1/03
Lehman Brothers Aggregate Bond Index 5.58 4.17 8/1/03
Wealth Builder PHOLIO(SM) Composite Index 14.01 10.77 8/1/03
ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS.
CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. 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. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT
A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES.
PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT
MONTH-END.
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 CLASS
C SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE.
CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL REDEMPTIONS
OF CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 PERIODS ENDING 7/31
- --------------------------------------------------------------------------------
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
8/1/03 (inception of the Fund) in Class A 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 C shares includes applicable CDSC charges
since inception. Performance assumes dividends and capital gain distributions
are reinvested.
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Phoenix Wealth Builder Phoenix Wealth Builder Lehman Brothers Aggregate Wealth Builder PHOLIO(SM)
PHOLIO(SM) Class A PHOLIO(SM) Class C S&P 500(R) Index Bond Index Composite Index
8/1/2003 $ 9,425 $10,000 $10,000 $10,000 $10,000
7/30/2004 $10,357 $10,903 $11,433 $10,489 $11,247
7/29/2005 $11,576 $12,104 $13,038 $10,992 $12,620
7/31/2006 $12,243 $12,709 $13,740 $11,152 $13,203
7/31/2007 $13,976 $14,398 $15,957 $11,774 $15,054
For information regarding the indexes, see the glossary on page 2.
12
Phoenix Wealth Builder PHOLIO
- --------------------------------------------------------------------------------
FUND INVESTMENT ALLOCATION 7/31/07
- --------------------------------------------------------------------------------
As a percentage of total investments
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Domestic Equity Funds 60%
Foreign Equity Funds 20
Domestic Fixed Income Funds 20
SCHEDULE OF INVESTMENTS
JULY 31, 2007
SHARES VALUE
--------- -------------
MUTUAL FUNDS--99.9%
DOMESTIC EQUITY FUNDS(c)--59.8%
Phoenix Capital Growth Fund Class A(b) .......... 444,894 $ 7,420,837
Phoenix Dynamic Growth Fund Class A(b) .......... 445,614 5,489,961
Phoenix Growth & Income Fund Class A ............ 808,064 14,407,784
Phoenix Growth Opportunities Fund Class A(b) .... 537,747 7,722,041
Phoenix Market Neutral Fund Class A ............. 869,156 9,421,651
Phoenix Mid-Cap Value Fund Class A .............. 200,370 5,295,772
Phoenix Quality Small-Cap Fund Class A .......... 218,291 2,477,602
Phoenix Real Estate Securities Fund Class A ..... 171,041 5,206,500
Phoenix Small-Cap Growth Fund Class A(b) ........ 73,712 2,683,109
Phoenix Small-Cap Sustainable Growth Fund
Class A(b) ...................................... 247,913 2,506,398
Phoenix Small-Cap Value Fund Class A ............ 153,569 2,492,425
Phoenix Value Opportunities Fund Class A ........ 1,111,928 14,354,989
-------------
79,479,069
-------------
FOREIGN EQUITY FUNDS(c)--20.3%
Phoenix Foreign Opportunities Fund Class A ...... 316,366 8,371,039
Phoenix Global Utilities Fund Class A ........... 425,554 5,413,051
Phoenix International Strategies Fund Class A ... 863,714 13,197,544
-------------
26,981,634
-------------
SHARES VALUE
--------- -------------
DOMESTIC FIXED INCOME FUNDS(c)--19.8%
Phoenix Bond Fund Class A ....................... 1,032,196 $ 10,404,535
Phoenix Insight High Yield Bond Fund Class A .... 208,984 2,493,180
Phoenix Institutional Bond Fund Class Y ......... 346,218 10,580,413
Phoenix Multi-Sector Short Term Bond Fund
Class A ......................................... 588,498 2,748,288
-------------
26,226,416
-------------
- -----------------------------------------------------------------------------
TOTAL MUTUAL FUNDS
(IDENTIFIED COST $117,240,038) 132,687,119
- -----------------------------------------------------------------------------
TOTAL LONG TERM INVESTMENTS--99.9%
(IDENTIFIED COST $117,240,038) 132,687,119
- -----------------------------------------------------------------------------
PAR VALUE
(000)
---------
SHORT-TERM INVESTMENTS--0.3%
COMMERCIAL PAPER(d)--0.3%
Lockhart Funding LLC 5.38%,8/1/07................ $ 422 422,000
- -----------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $422,000) 422,000
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS--100.2%
(IDENTIFIED COST $117,662,038) 133,109,119(a)
Other assets and liabilities, net--(0.2)% (202,997)
-------------
NET ASSETS--100.0% $ 132,906,122
=============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $16,737,153 and gross
depreciation of $1,628,859 for federal income tax purposes. At July 31,
2007, the aggregate cost of securities for federal income tax purposes was
$118,000,825.
(b) Non-income producing.
(c) Affiliated Funds.
(d) The rate shown is the discount rate.
See Notes to Financial Statements 13
Phoenix Wealth Builder PHOLIO
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 2007
ASSETS
Investment in affiliated funds at value
(Identified cost $117,240,038) $132,687,119
Investment securities at value
(Identified cost $422,000) 422,000
Cash 525
Receivables
Fund shares sold 79,959
Dividends 26,970
Receivable from adviser 16,175
Trustee retainer 663
Prepaid expenses 28,192
Other assets 24,629
------------
Total assets 133,286,232
------------
LIABILITIES
Payables
Fund shares repurchased 212,727
Investment securities purchased 27,293
Distribution and service fees 50,421
Trustee deferred compensation plan 24,629
Transfer agent fee 22,859
Professional fee 20,034
Administration fee 9,735
Other accrued expenses 12,412
------------
Total liabilities 380,110
------------
NET ASSETS $132,906,122
============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $111,276,669
Undistributed net investment income 242,496
Accumulated net realized gain 5,939,876
Net unrealized appreciation 15,447,081
------------
NET ASSETS $132,906,122
============
CLASS A
Net asset value per share (net assets/shares outstanding) $ 12.91
Maximum offering price per share $12.91/(1-5.75%) $ 13.70
Shares of beneficial interest outstanding, no par value,
unlimited authorization 4,403,451
Net Assets $ 56,856,696
CLASS C
Net asset value and offering price per share $ 12.85
Shares of beneficial interest outstanding, no par value,
unlimited authorization 5,916,448
Net Assets $ 76,049,426
STATEMENT OF OPERATIONS
YEAR ENDED JULY 31, 2007
INVESTMENT INCOME
Income distributions received from affiliated funds $ 2,111,719
Interest 14,973
------------
Total investment income 2,126,692
------------
EXPENSES
Investment advisory fee 133,557
Distribution and service fees, Class C 580,537
Administration fee 110,573
Transfer agent 171,544
Printing 89,018
Registration 38,448
Professional 23,676
Trustees 12,721
Custodian 8,634
Miscellaneous 16,768
------------
Total expenses 1,185,476
Less expenses reimbursed by investment adviser (531,051)
Custodian fees paid indirectly (137)
------------
Net expenses 654,288
------------
NET INVESTMENT INCOME (LOSS) 1,472,404
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments from affiliated funds 2,613,097
Capital gain distributions received from affiliated funds 6,283,528
Net change in unrealized appreciation (depreciation) on
investments from affiliated funds 6,637,377
------------
NET GAIN (LOSS) ON INVESTMENTS FROM AFFILIATED FUNDS 15,534,002
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 17,006,406
============
14 See Notes to Financial Statements
Phoenix Wealth Builder PHOLIO
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
July 31, 2007 July 31, 2006
------------- -------------
FROM OPERATIONS
Net investment income (loss) $ 1,472,404 $ 1,014,052
Net realized gain (loss) 8,896,625 8,867,323
Net change in unrealized appreciation (depreciation) 6,637,377 (3,103,386)
------------- -------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 17,006,406 6,777,989
------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (1,832,339) (659,079)
Net investment income, Class C (1,954,692) (448,891)
Net realized short-term gains, Class A (200,142) (458,875)
Net realized short-term gains, Class C (277,110) (764,786)
Net realized long-term gains, Class A (757,060) (2,355,289)
Net realized long-term gains, Class C (1,048,198) (3,925,451)
------------- -------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (6,069,541) (8,612,371)
------------- -------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (919,380 and 1,375,701 shares, respectively) 11,761,299 16,432,872
Net asset value of shares issued from reinvestment of distributions (200,805 and
212,039 shares, respectively) 2,527,941 2,460,025
Cost of shares repurchased (1,071,312 and 1,206,100 shares, respectively) (13,739,867) (14,395,918)
------------- -------------
Total 549,373 4,496,979
------------- -------------
CLASS C
Proceeds from sales of shares (734,493 and 1,233,328 shares, respectively) 9,312,700 14,581,264
Net asset value of shares issued from reinvestment of distributions (215,361 and
163,141 shares, respectively) 2,681,483 1,884,371
Cost of shares repurchased (1,384,202 and 2,058,744 shares, respectively) (17,498,032) (24,420,364)
------------- -------------
Total (5,503,849) (7,954,729)
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (4,954,476) (3,457,750)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS 5,982,389 (5,292,132)
NET ASSETS
Beginning of period 126,923,733 132,215,865
------------- -------------
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $242,496 AND
$86,452, RESPECTIVELY) $ 132,906,122 $ 126,923,733
============= =============
See Notes to Financial Statements 15
Phoenix Wealth Builder PHOLIO
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS A
---------------------------------------------
YEAR ENDED JULY 31
---------------------------------------------
2007 2006 2005 2004
Net asset value, beginning of period $ 11.89 $ 12.07 $ 10.89 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(3) 0.20 0.15 0.11 0.12
Capital gain distributions received from affiliated funds(3) 0.60 0.12 0.07 0.01
Net realized and unrealized gain (loss) 0.86 0.40 1.10 0.86
-------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.66 0.67 1.28 0.99
-------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment income (0.42) (0.16) (0.10) (0.10)
Distributions from net realized gains (0.22) (0.69) --(5) --
-------- -------- -------- --------
TOTAL DISTRIBUTIONS (0.64) (0.85) (0.10) (0.10)
-------- -------- -------- --------
Change in net asset value 1.02 (0.18) 1.18 0.89
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 12.91 $ 11.89 $ 12.07 $ 10.89
======== ======== ======== ========
Total return(1) 14.16% 5.76% 11.76% 9.89%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $ 56,857 $ 51,755 $ 47,934 $ 29,566
RATIO TO AVERAGE NET ASSETS OF:
Net operating expenses(2) 0.06% 0.20%(4) 0.40% 0.40%
Gross operating expenses(2) 0.45% 0.45% 0.45% 0.77%
Net investment income 1.54% 1.25% 0.93% 1.11%
Portfolio turnover 43% 74% 4% 0%
CLASS C
---------------------------------------------
YEAR ENDED JULY 31
---------------------------------------------
2007 2006 2005 2004
Net asset value, beginning of period $ 11.84 $ 12.02 $ 10.86 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(3) 0.10 0.06 0.02 0.04
Capital gain distributions received from affiliated funds(3) 0.60 0.12 0.07 0.01
Net realized and unrealized gain (loss) 0.86 0.40 1.10 0.85
-------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.56 0.58 1.19 0.90
-------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment income (0.33) (0.07) (0.03) (0.04)
Distributions from net realized gains (0.22) (0.69) --(5) --
-------- -------- -------- --------
TOTAL DISTRIBUTIONS (0.55) (0.76) (0.03) (0.04)
-------- -------- -------- --------
Change in net asset value 1.01 (0.18) 1.16 0.86
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 12.85 $ 11.84 $ 12.02 $ 10.86
======== ======== ======== ========
Total return(1) 13.29% 4.99% 11.01% 9.03%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $ 76,049 $ 75,168 $ 84,281 $ 58,012
RATIO TO AVERAGE NET ASSETS OF:
Net operating expenses(2) 0.80% 0.96%(4) 1.15% 1.15%
Gross operating expenses(2) 1.20% 1.19% 1.20% 1.47%
Net investment income 0.79% 0.48% 0.19% 0.34%
Portfolio turnover 43% 74% 4% 0%
(1) Sales charges are not reflected in the total return calculation.
(2) The Fund also will indirectly bear its prorated share of expenses of the
underlying funds. Such expenses are not included in the calculation of
this ratio.
(3) Computed using average shares outstanding.
(4) Represents blended net expense ratio.
(5) Amount is less than $0.01.
16 See Notes to Financial Statements
PHOENIX WEALTH GUARDIAN PHOLIO
VIEWPOINT FROM THE FUND'S OVERSIGHT MANAGER, CHRISTOPHER WILKOS, CFA
For the Fund's fiscal year ended July 31, 2007,
o Class A shares returned 11.82%;
o Class C shares returned 10.90%;
o the S&P 500(R) Index, a broad-based equity index, returned 16.13%;
o the Lehman Brothers Aggregate Bond Index, a broad-based fixed income
index, returned 5.58%;
o the Wealth Guardian PHOLIO Composite Index (60% S&P 500(R) Index and
40% Lehman Brothers Aggregate Bond Index), the PHOLIO's
style-specific benchmark, returned 11.90%.
ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE
EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND
CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE.
Q: HOW DID THE MARKETS PERFORM DURING THE FUND'S FISCAL YEAR?
A: During the fund's fiscal year, equity markets performed very well. The
Standard & Poor's 500 index rose over 16%, while the Russell 2000 Index of small
capitalization stocks rose over 13%. International markets had outstanding
performance as the MSCI EAFE Index rose 24.4% in the fiscal year. One of the
only negative sectors of equity performance was the REIT market which fell
slightly in the fiscal year.
In the fixed income markets, returns were in the solid single digits. The
Lehman Brothers Aggregate bond index posted a return of 5.58% for the fiscal
year, while the Lehman Brothers High Yield index returned 6.56%. Interest rates,
as measured by U.S. treasury security yields, fell between 15 and 40 basis
points during the fiscal year.
Q: WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR?
A: The Fund's performance reflected its blend of 60% equity fund investments and
40% fixed income fund investments. The Fund benefited most from a diversified
exposure to both U.S. and foreign equities, and large, mid and small
capitalization styles. Returns in equity markets outpaced fixed income returns
as described above. The Fund's performance was negatively impacted by an
allocation to a market neutral fund and a small allocation to a REIT fund. While
fixed income returns were lower than equity market returns, they were still
positive and added to the Fund's performance.
THE PRECEDING INFORMATION IS THE OPINION OF PORTFOLIO MANAGEMENT. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS, AND THERE IS NO GUARANTEE THAT
MARKET FORECASTS WILL BE REALIZED.
FOR DEFINITIONS OF INDEXES CITED IN THIS REPORT, SEE THE GLOSSARY ON PAGE 2.
17
Phoenix Wealth Guardian PHOLIO
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS 1 PERIODS ENDING 7/31/07
- --------------------------------------------------------------------------------
INCEPTION INCEPTION
1 YEAR TO 7/31/07 DATE
------ ---------- ---------
Class A Shares at NAV 2 11.82% 8.75% 8/1/03
Class A Shares at POP 3,4 5.39 7.15 8/1/03
Class C Shares at NAV 2 10.90 7.93 8/1/03
Class C Shares with CDSC 4 10.90 7.93 8/1/03
S&P 500(R) Index 16.13 12.39 8/1/03
Lehman Brothers Aggregate Bond Index 5.58 4.17 8/1/03
Wealth Guardian PHOLIO(SM) Composite Index 11.90 9.13 8/1/03
ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS.
CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. 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. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT
A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES.
PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT
MONTH-END.
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 CLASS
C SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE.
CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL REDEMPTIONS
OF CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 PERIODS ENDING 7/31
- --------------------------------------------------------------------------------
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
8/1/03 (inception of the Fund) in Class A 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 C shares includes applicable CDSC charges
since inception. Performance assumes dividends and capital gain distributions
are reinvested.
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Phoenix Wealth Phoenix Wealth Lehman Brothers Wealth Guardian
Guardian PHOLIO(SM) Guardian PHOLIO(SM) S&P 500(R) Aggregate Bond PHOLIO(SM) Composite
Class A Class C Index Index Index
8/1/2003 $ 9,425 $ 10,000 $ 10,000 $ 10,000 $ 10,000
7/30/2004 $ 10,287 $ 10,829 $ 11,433 $ 10,489 $ 11,060
7/29/2005 $ 11,289 $ 11,808 $ 13,038 $ 10,992 $ 12,206
7/31/2006 $ 11,789 $ 12,237 $ 13,740 $ 11,152 $ 12,676
7/31/2007 $ 13,182 $ 13,570 $ 15,957 $ 11,774 $ 14,184
For information regarding the indexes, see the glossary on page 2.
18
Phoenix Wealth Guardian PHOLIO
- --------------------------------------------------------------------------------
FUND INVESTMENT ALLOCATION 7/31/07
- --------------------------------------------------------------------------------
As a percentage of total investments
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Domestic Equity Funds 47%
Domestic Fixed Income Funds 39
Foreign Equity Funds 14
SCHEDULE OF INVESTMENTS
JULY 31, 2007
SHARES VALUE
---------- -----------
MUTUAL FUNDS--99.6%
DOMESTIC EQUITY FUNDS(c)--46.5%
Phoenix Capital Growth Fund Class A(b) ........... 168,153 $ 2,804,797
Phoenix Dynamic Growth Fund Class A(b) ........... 144,849 1,784,539
Phoenix Growth & Income Fund Class A ............. 293,630 5,235,431
Phoenix Growth Opportunities Fund Class A(b) ..... 194,612 2,794,624
Phoenix Market Neutral Fund Class A .............. 359,395 3,895,836
Phoenix Mid-Cap Value Fund Class A ............... 71,949 1,901,608
Phoenix Quality Small-Cap Fund Class A ........... 79,272 899,742
Phoenix Real Estate Securities Fund Class A ...... 39,157 1,191,951
Phoenix Small-Cap Growth Fund Class A(b) ......... 25,701 935,505
Phoenix Small-Cap Sustainable Growth Fund
Class A(b) ....................................... 89,988 909,774
Phoenix Small-Cap Value Fund Class A ............. 58,232 945,101
Phoenix Value Opportunities Fund Class A ......... 415,696 5,366,639
-----------
28,665,547
-----------
FOREIGN EQUITY FUNDS(c)--14.1%
Phoenix Foreign Opportunities Fund Class A ....... 99,458 2,631,652
Phoenix Global Utilities Fund Class A ............ 100,188 1,274,395
Phoenix International Strategies Fund Class A .... 312,829 4,780,020
-----------
8,686,067
-----------
SHARES VALUE
---------- -----------
DOMESTIC FIXED INCOME FUNDS(c)--39.0%
Phoenix Bond Fund Class A ........................ 989,222 $ 9,971,358
Phoenix Insight High Yield Bond Fund Class A ..... 197,450 2,355,575
Phoenix Institutional Bond Fund Class Y .......... 305,401 9,333,045
Phoenix Multi-Sector Short Term Bond Fund
Class A .......................................... 505,294 2,359,722
-----------
24,019,700
-----------
- -----------------------------------------------------------------------------
TOTAL MUTUAL FUNDS
(IDENTIFIED COST $56,701,574) 61,371,314
- -----------------------------------------------------------------------------
TOTAL LONG TERM INVESTMENTS--99.6%
(IDENTIFIED COST $56,701,574) 61,371,314
- -----------------------------------------------------------------------------
PAR VALUE
(000)
----------
SHORT-TERM INVESTMENTS--0.3%
COMMERCIAL PAPER(d)--0.3%
UBS Finance Delaware LLC 5.33%, 8/1/07 $ 165 165,000
- -----------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $165,000) 165,000
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS--99.9%
(IDENTIFIED COST $56,866,574) 61,536,314(a)
Other assets and liabilities, net--0.1% 54,455
-----------
NET ASSETS--100.0% $61,590,769
===========
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $5,482,577 and gross
depreciation of $1,070,825 for federal income tax purposes. At July 31,
2007, the aggregate cost of securities for federal income tax purposes was
$57,124,562.
(b) Non-income producing.
(c) Affiliated Fund.
(d) The rate shown is the discount rate.
See Notes to Financial Statements 19
Phoenix Wealth Guardian PHOLIO
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 2007
ASSETS
Investment in affiliated funds at value
(Identified cost $56,701,574) $ 61,371,314
Investment securities at value
(Identified cost $165,000) 165,000
Cash 2,601
Receivables
Investment securities sold 222,957
Dividends 23,391
Receivable from adviser 9,956
Fund shares sold 2,252
Trustee retainer 302
Prepaid expenses 20,066
Other assets 11,186
------------
Total assets 61,829,025
------------
LIABILITIES
Payables
Fund shares repurchased 142,415
Investment securities purchased 24,849
Distribution and service fees 21,243
Professional fee 19,869
Trustee deferred compensation plan 11,186
Transfer agent fee 8,326
Administration fee 4,439
Other accrued expenses 5,929
------------
Total liabilities 238,256
------------
NET ASSETS $ 61,590,769
============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 55,043,977
Undistributed net investment income 234,173
Accumulated net realized gain 1,642,879
Net unrealized appreciation 4,669,740
------------
NET ASSETS $ 61,590,769
============
CLASS A
Net asset value per share (net assets/shares outstanding) $ 12.02
Maximum offering price per share $12.02/(1-5.75%) $ 12.75
Shares of beneficial interest outstanding, no par value,
unlimited authorization 2,438,778
Net Assets $ 29,304,370
CLASS C
Net asset value and offering price per share $ 12.00
Shares of beneficial interest outstanding, no par value,
unlimited authorization 2,690,498
Net Assets $ 32,286,399
STATEMENT OF OPERATIONS
YEAR ENDED JULY 31, 2007
INVESTMENT INCOME
Income distributions received from affiliated funds $ 1,398,952
Interest 12,990
------------
Total investment income 1,411,942
------------
EXPENSES
Investment advisory fee 60,531
Distribution and service fees, Class C 249,915
Administration fee 50,084
Transfer agent 60,567
Printing 36,918
Registration 27,449
Professional 22,003
Trustees 6,426
Custodian 6,342
Miscellaneous 8,002
------------
Total expenses 528,237
Less expenses reimbursed by investment adviser (246,627)
Custodian fees paid indirectly (261)
------------
Net expenses 281,349
------------
NET INVESTMENT INCOME (LOSS) 1,130,593
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments from affiliated funds 567,347
Capital gain distributions received from affiliated funds 2,322,618
Net change in unrealized appreciation (depreciation)
on investments from affiliated funds 2,333,159
------------
NET GAIN (LOSS) ON INVESTMENTS FROM AFFILIATED FUNDS 5,223,124
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 6,353,717
============
20 See Notes to Financial Statements
Phoenix Wealth Guardian PHOLIO
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
July 31, 2007 July 31, 2006
------------- -------------
FROM OPERATIONS
Net investment income (loss) $ 1,130,593 $ 847,990
Net realized gain (loss) 2,889,965 3,436,978
Net change in unrealized appreciation (depreciation) 2,333,159 (1,836,776)
----------- -----------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 6,353,717 2,448,192
----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (975,179) (478,246)
Net investment income, Class C (929,717) (447,365)
Net realized short-term gains, Class A (123,790) (213,263)
Net realized short-term gains, Class C (157,431) (339,237)
Net realized long-term gains, Class A (263,848) (951,481)
Net realized long-term gains, Class C (334,202) (1,513,518)
----------- -----------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (2,784,167) (3,943,110)
----------- -----------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (617,406 and 856,254 shares, respectively) 7,397,236 9,783,645
Net asset value of shares issued from reinvestment of distributions (93,117 and 113,730 shares,
respectively) 1,102,159 1,268,792
Cost of shares repurchased (460,923 and 562,827 shares, respectively) (5,500,033) (6,422,350)
----------- -----------
Total 2,999,362 4,630,087
----------- -----------
CLASS C
Proceeds from sales of shares (294,767 and 480,977 shares, respectively) 3,491,497 5,476,904
Net asset value of shares issued from reinvestment of distributions (41,179 and 64,763 shares,
respectively) 485,372 721,732
Cost of shares repurchased (634,579 and 1,027,548 shares, respectively) (7,499,689) (11,736,494)
----------- -----------
Total (3,522,820) (5,537,858)
----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (523,458) (907,771)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS 3,046,092 (2,402,689)
NET ASSETS
Beginning of period 58,544,677 60,947,366
----------- -----------
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $234,173 AND
$72,816, RESPECTIVELY) $61,590,769 $58,544,677
=========== ===========
See Notes to Financial Statements 21
Phoenix Wealth Guardian PHOLIO
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS A
---------------------------------------------------
YEAR ENDED JULY 31
---------------------------------------------------
2007 2006 2005 2004
Net asset value, beginning of period $ 11.31 $ 11.61 $ 10.74 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.27(3) 0.22(3) 0.17 0.17
Capital gain distributions received from affiliated funds 0.46(3) 0.10(3) 0.06 --(5)
Net realized and unrealized gain (loss) 0.59 0.18 0.81 0.74
-------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.32 0.50 1.04 0.91
-------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment income (0.43) (0.23) (0.17) (0.17)
Distributions from net realized gains (0.18) (0.57) --(5) --
-------- -------- -------- --------
TOTAL DISTRIBUTIONS (0.61) (0.80) (0.17) (0.17)
-------- -------- -------- --------
Change in net asset value 0.71 (0.30) 0.87 0.74
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 12.02 $ 11.31 $ 11.61 $ 10.74
======== ======== ======== ========
Total return(1) 11.82% 4.43% 9.74% 9.15%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $ 29,304 $ 24,768 $ 20,696 $ 10,182
RATIO TO AVERAGE NET ASSETS OF:
Net operating expenses(2) 0.05% 0.26%(4) 0.52% 0.52%
Gross operating expenses(2) 0.46% 0.56% 0.65% 1.35%
Net investment income 2.28% 1.92% 1.56% 1.92%
Portfolio turnover 41% 67% 5% 1%
CLASS C
---------------------------------------------------
YEAR ENDED JULY 31
---------------------------------------------------
2007 2006 2005 2004
Net asset value, beginning of period $ 11.30 $ 11.60 $ 10.72 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.18(3) 0.12(3) 0.09 0.12
Capital gain distributions received from affiliated funds 0.46(3) 0.10(3) 0.06 0.01
Net realized and unrealized gain (loss) 0.58 0.19 0.81 0.70
-------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.22 0.41 0.96 0.83
-------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment income (0.34) (0.14) (0.08) (0.11)
Distributions from net realized gains (0.18) (0.57) --(5) --
-------- -------- -------- --------
TOTAL DISTRIBUTIONS (0.52) (0.71) (0.08) (0.11)
-------- -------- -------- --------
Change in net asset value 0.70 (0.30) 0.88 0.72
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 12.00 $ 11.30 $ 11.60 $ 10.72
======== ======== ======== ========
Total return(1) 10.90% 3.63% 9.03% 8.29%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $ 32,286 $ 33,776 $ 40,252 $ 28,355
RATIO TO AVERAGE NET ASSETS OF:
Net operating expenses(2) 0.80% 1.03%(4) 1.27% 1.27%
Gross operating expenses(2) 1.21% 1.31% 1.40% 1.98%
Net investment income 1.53% 1.08% 0.80% 1.19%
Portfolio turnover 41% 67% 5% 1%
(1) Sales charges are not reflected in the total return calculation.
(2) The Fund also will indirectly bear its prorated share of expenses of the
underlying funds. Such expenses are not included in the calculation of
this ratio.
(3) Computed using average shares outstanding.
(4) Represents blended net expense ratio.
(5) Amount is less than $0.01.
22 See Notes to Financial Statements
PHOENIX DIVERSIFIER PHOLIO
VIEWPOINT FROM THE FUND'S OVERSIGHT MANAGER, CHRISTOPHER WILKOS, CFA
For the Fund's fiscal year ended July 31, 2007,
o Class A shares returned 6.76%;
o Class C shares returned 6.01%;
o the S&P 500(R) Index, a broad-based equity index, returned 16.13%.
ALL PERFORMANCE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS AND EXCLUDE THE
EFFECT OF SALES CHARGES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND
CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN ABOVE.
Q: HOW DID THE MARKETS PERFORM DURING THE FUND'S FISCAL YEAR?
A: During the fund's fiscal year, equity markets performed very well. The
Standard & Poor's 500 index rose over 16%, while the Russell 2000 Index of small
capitalization stocks rose over 13%. International markets had outstanding
performance as the MSCI EAFE Index rose 24.4% in the fiscal year. One of the
only negative sectors of equity performance was the REIT market which fell
slightly in the fiscal year.
In the fixed income markets, returns were in the solid single digits. The
Lehman Brothers Aggregate bond index posted a return of 5.58% for the fiscal
year, while the Lehman Brothers High Yield index returned 6.56%. Interest rates,
as measured by U.S. treasury security yields, fell between 15 and 40 basis
points during the fiscal year.
Other markets important to the Fund include commodities, which were up
1.81% during the fiscal year as measured by the Dow Jones AIG Commodity total
return index.
Q: WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR?
A: The Fund's performance was positively impacted by its exposure to two
commodity related exchange-traded funds (ETFs) which comprised approximately 25%
of the Fund. The Fund also benefited from a 25% allocation to a Global Utilities
mutual fund that returned over 20% during the Fiscal year. The Fund was
negatively impacted by its investments in a Market Neutral fund and a REIT fund.
THE PRECEDING INFORMATION IS THE OPINION OF PORTFOLIO MANAGEMENT. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS, AND THERE IS NO GUARANTEE THAT
MARKET FORECASTS WILL BE REALIZED.
FOR DEFINITIONS OF INDEXES CITED IN THIS REPORT, SEE THE GLOSSARY ON PAGE 2.
23
Phoenix Diversifier PHOLIO
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS 1 PERIODS ENDING 7/31/07
- --------------------------------------------------------------------------------
INCEPTION INCEPTION
1 YEAR TO 7/31/06 DATE
------ ---------- ---------
Class A Shares at NAV 2 6.76% 8.15% 11/30/05
Class A Shares at POP 3,4 0.62 4.37 11/30/05
Class C Shares at NAV 2 6.01 7.35 11/30/05
Class C Shares with CDSC 4 6.01 7.35 11/30/05
S&P 500(R) Index 16.13 11.59 11/30/05
ALL RETURNS REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS.
CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE SHOWN. 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. THE ABOVE TABLE AND GRAPH BELOW DO NOT REFLECT THE DEDUCTION OF TAXES THAT
A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES.
PLEASE VISIT PHOENIXFUNDS.COM FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT
MONTH-END.
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 CLASS
C SHARES THAT DO NOT HAVE A SALES CHARGE APPLIED AT THE TIME OF PURCHASE.
CDSC CHARGES FOR CERTAIN REDEMPTIONS OF CLASS A SHARES AND ALL REDEMPTIONS
OF CLASS C SHARES ARE 1% IN THE FIRST YEAR AND 0% THEREAFTER.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 PERIODS ENDING 7/31
- --------------------------------------------------------------------------------
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
11/30/05 (inception of the Fund) in Class A 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 C shares includes applicable CDSC charges
since inception. Performance assumes dividends and capital gain distributions
are reinvested.
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Phoenix Diversifier Phoenix Diversifier
PHOLIO(SM) Class A PHOLIO(SM) Class C S&P 500(R) Index
11/30/2005 $ 9,425 $10,000 $10,000
7/31/2006 $10,059 $10,616 $10,336
7/31/2007 $10,738 $11,254 $12,004
For information regarding the index, see the glossary on page 2.
24
Phoenix Diversifier PHOLIO
- --------------------------------------------------------------------------------
FUND INVESTMENT ALLOCATION 7/31/07
- --------------------------------------------------------------------------------
As a percentage of total investments
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Domestic Equity Funds 38%
Foreign Equity Funds 26
Exchange Traded Funds 26
Domestic Fixed Income Funds 9
Other 1
SCHEDULE OF INVESTMENTS
JULY 31, 2007
SHARES VALUE
---------- -------------
MUTUAL FUNDS--73.9%
DOMESTIC EQUITY FUNDS(c)--38.6%
Phoenix Market Neutral Fund Class A ............ 2,262,613 $ 24,526,728
Phoenix Real Estate Securities Fund Class A .... 1,172,660 35,695,784
-------------
60,222,512
-------------
FOREIGN EQUITY FUND(c)--25.7%
Phoenix Global Utilities Fund Class A .......... 3,152,477 40,099,503
DOMESTIC FIXED INCOME FUNDS(c)--9.6%
Phoenix Multi-Sector Short Term Bond Fund
Class A ........................................ 3,182,864 14,863,973
- -----------------------------------------------------------------------------
TOTAL MUTUAL FUNDS
(IDENTIFIED COST $121,750,993) 115,185,988
- -----------------------------------------------------------------------------
EXCHANGE TRADED FUNDS--25.6%
iShares S&P GSSI Natural Resources
Index Fund ..................................... 125,610 15,110,883
PowerShares DB Commodity Index Tracking
Fund(b) ........................................ 947,670 24,819,477
- -----------------------------------------------------------------------------
TOTAL EXCHANGE TRADED FUNDS
(IDENTIFIED COST $36,230,060) 39,930,360
- -----------------------------------------------------------------------------
TOTAL LONG TERM INVESTMENTS--99.5%
(IDENTIFIED COST $157,981,053) 155,116,348
- -----------------------------------------------------------------------------
PAR VALUE
(000) VALUE
---------- -------------
SHORT-TERM INVESTMENTS--0.7%
COMMERCIAL PAPER(d)--0.7%
Lockhart Funding LLC 5.38%, 8/1/07 ............. $ 1,053 $ 1,053,000
- -----------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $1,053,000) 1,053,000
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS--100.2%
(IDENTIFIED COST $159,034,053) 156,169,348(a)
Other assets and liabilities, net--(0.2)% (270,708)
-------------
NET ASSETS--100.0% $ 155,898,640
=============
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $3,289,371 and gross
depreciation of $6,594,554 for federal income tax purposes. At July 31,
2007, the aggregate cost of securities for federal income tax purposes was
$159,474,531.
(b) Non-income producing.
(c) Affiliated Fund.
(d) The rate shown is the discount rate.
See Notes to Financial Statements 25
Phoenix Diversifier PHOLIO
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 2007
ASSETS
Investment in affiliated funds at value
(Identified cost $121,750,993) $ 115,185,988
Investment in non-affiliated funds at value
(Identified cost $36,230,060) 39,930,360
Investment securities at value
(Identified cost $1,053,000) 1,053,000
Receivables
Fund shares sold 1,831,014
Dividends 62,758
Receivable from adviser 22,159
Trustee retainer 431
Prepaid expenses 13,061
Other assets 153
-------------
Total assets 158,098,924
-------------
LIABILITIES
Cash overdraft 65
Payables
Investment securities purchased 1,829,714
Fund shares repurchased 257,402
Distribution and service fees 47,223
Transfer agent fee 19,292
Administration fee 9,726
Trustee deferred compensation plan 153
Other accrued expenses 36,709
-------------
Total liabilities 2,200,284
-------------
NET ASSETS $ 155,898,640
=============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 158,174,190
Undistributed net investment income 238,309
Accumulated net realized gain 350,846
Net unrealized depreciation (2,864,705)
-------------
NET ASSETS $ 155,898,640
=============
CLASS A
Net asset value per share (net assets/shares outstanding) $ 11.15
Maximum offering price per share $11.15/(1-5.75%) $ 11.83
Shares of beneficial interest outstanding, no par value,
unlimited authorization 8,541,628
Net Assets $ 95,230,035
CLASS C
Net asset value and offering price per share $ 11.07
Shares of beneficial interest outstanding, no par value,
unlimited authorization 5,482,656
Net Assets $ 60,668,605
STATEMENT OF OPERATIONS
YEAR ENDED JULY 31, 2007
INVESTMENT INCOME
Income distributions received from affiliated funds $ 1,068,398
Income distributions received from non-affiliated funds 241,469
Interest 38,587
-------------
Total investment income 1,348,454
-------------
EXPENSES
Investment advisory fee 70,956
Distribution and service fees, underlying ETF's 41,703
Distribution and service fees, Class C 210,036
Administration fee 57,890
Transfer agent 85,601
Registration 32,675
Printing 24,874
Professional 24,403
Custodian 13,805
Trustees 5,853
Miscellaneous 5,349
-------------
Total expenses 573,145
Less expenses reimbursed by investment adviser (174,811)
Custodian fees paid indirectly (1,353)
-------------
Net expenses 396,981
-------------
NET INVESTMENT INCOME (LOSS) 951,473
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments from affiliated funds (226,134)
Net realized gain (loss) on investments from non-affiliated
funds 35,152
Capital gain distributions received from affiliated funds 843,871
Net change in unrealized appreciation (depreciation)
on investments from affiliated funds (6,600,326)
Net change in unrealized appreciation (depreciation)
on investments from non-affiliated funds 3,686,456
-------------
NET GAIN (LOSS) ON INVESTMENTS (2,260,981)
-------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ (1,309,508)
=============
26 See Notes to Financial Statements
Phoenix Diversifier PHOLIO
STATEMENT OF CHANGES IN NET ASSETS
From Inception
Year Ended November 30, 2005 to
July 31, 2007 July 31, 2006
------------- --------------------
FROM OPERATIONS
Net investment income (loss) $ 951,473 $ 2,767
Net realized gain (loss) 652,889 (3,308)
Net change in unrealized appreciation (depreciation) (2,913,870) 49,165
------------- -----------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (1,309,508) 48,624
------------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (715,683) (408)
Net investment income, Class C (294,068) (340)
Net realized long-term gains, Class A (2,345) --
Net realized long-term gains, Class C (1,822) --
------------- -----------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (1,013,918) (748)
------------- -----------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (8,789,977 and 117,420 shares, respectively) 99,696,657 1,212,084
Net asset value of shares issued from reinvestment of distributions (40,991 and 41 shares,
respectively) 459,767 408
Cost of shares repurchased (405,199 and 1,602 shares, respectively) (4,654,445) (16,455)
------------- -----------
Total 95,501,979 1,196,037
------------- -----------
CLASS C
Proceeds from sales of shares (5,585,722 and 54,916 shares, respectively) 62,712,994 568,424
Net asset value of shares issued from reinvestment of distributions (9,596 and 34 shares,
respectively) 105,855 340
Cost of shares repurchased (167,612 and 0 shares, respectively) (1,911,439) --
------------- -----------
Total 60,907,410 568,764
------------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 156,409,389 1,764,801
------------- -----------
NET INCREASE (DECREASE) IN NET ASSETS 154,085,963 1,812,677
NET ASSETS
Beginning of period 1,812,677 --
------------- -----------
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $238,309
AND $2,049, RESPECTIVELY) $ 155,898,640 $ 1,812,677
============= ===========
See Notes to Financial Statements 27
Phoenix Diversifier PHOLIO
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
CLASS A
-------------------------------------
FROM INCEPTION
YEAR ENDED NOVEMBER 30, 2005 TO
JULY 31, 2007 JULY 31, 2006
------------- --------------------
Net asset value, beginning of period $ 10.63 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(3) 0.18 0.08
Capital gain distributions received from affiliated funds(3) 0.13 0.02
Net realized and unrealized gain (loss) 0.41(7) 0.57
-------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.72 0.67
-------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.20) (0.04)
Distributions from net realized gains --(6) --
-------- -------
TOTAL DISTRIBUTIONS (0.20) (0.04)
-------- -------
Change in net asset value 0.52 0.63
-------- -------
NET ASSET VALUE, END OF PERIOD $ 11.15 $ 10.63
======== =======
Total return(1) 6.76% 6.72%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $ 95,230 $ 1,231
RATIO TO AVERAGE NET ASSETS OF:
Net operating expenses(2) 0.26% 0.20%(4)
Gross operating expenses(2) 0.51% 31.52%(4)
Net investment income (loss) 1.61% 1.11%(4)
Portfolio turnover 11% 81%(5)
CLASS C
-------------------------------------
FROM INCEPTION
YEAR ENDED NOVEMBER 30, 2005 TO
JULY 31, 2007 JULY 31, 2006
------------- --------------------
Net asset value, beginning of period $ 10.58 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(3) 0.11 0.03
Capital gain distributions received from affiliated funds(3) 0.14 0.04
Net realized and unrealized gain (loss) 0.38(7) 0.54
-------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.63 0.61
-------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.14) (0.03)
Distributions from net realized gains --(6) --
-------- -------
TOTAL DISTRIBUTIONS (0.14) (0.03)
-------- -------
Change in net asset value 0.49 0.58
-------- -------
NET ASSET VALUE, END OF PERIOD $ 11.07 $ 10.58
======== =======
Total return(1) 6.01% 6.16%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $ 60,669 $ 581
RATIO TO AVERAGE NET ASSETS OF:
Net operating expenses(2) 1.01% 0.95%(4)
Gross operating expenses(2) 1.26% 46.88%(4)
Net investment income (loss) 0.93% 0.38%(4)
Portfolio turnover 11% 81%(5)
(1) Sales charges are not reflected in the total return calculation.
(2) The Fund also will indirectly bear its prorated share of expenses of the
underlying funds. Such expenses are not included in the calculation of
this ratio.
(3) Computed using average shares outstanding.
(4) Annualized.
(5) Not annualized.
(6) Amount is less than $0.01.
(7) The amount shown for a share outstanding throughout the period does not
accord with the aggregate net loss on investments for the period because
of the sales and repurchases of fund shares in relation to fluctuating
market value of the investments of the Fund.
28 See Notes to Financial Statements
PHOENIX PHOLIOS(SM)
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2007
1. ORGANIZATION
Phoenix PHOLIOs(SM) (the "Trust") is organized as a Delaware statutory
trust and is registered under the Investment Company Act of 1940, as amended, as
an open-end management investment company.
Each PHOLIO is a fund of funds. Currently four funds are offered for sale
(each a "Fund"). The Phoenix Wealth Accumulator PHOLIO ("Wealth Accumulator
PHOLIO") is diversified and has an investment objective of seeking long-term
capital appreciation. The Phoenix Wealth Builder PHOLIO ("Wealth Builder
PHOLIO") is diversified and has an investment objective of seeking long-term
capital appreciation. The Phoenix Wealth Guardian PHOLIO ("Wealth Guardian
PHOLIO") is diversified and has an investment objective of long-term capital
appreciation and current income. The Phoenix Diversifier PHOLIO ("Diversifier
PHOLIO") is diversified and has an investment objective of long-term capital
appreciation.
The Funds offer the following classes of shares for sale:
Class A Class C
------- -------
Wealth Accumulator PHOLIO ............... X X
Wealth Builder PHOLIO ................... X X
Wealth Guardian PHOLIO .................. X X
Diversifier PHOLIO ...................... X X
Class A shares are sold with a front-end sales charge of up to 5.75%.
Generally, Class A Shares are not subject to any charges by the funds when
redeemed; however, a 1% contingent deferred sales charge may be imposed on
certain redemptions made within one year on purchases on which a finder's fee
has been paid. 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 other expenses and realized and
unrealized gains and losses of each Fund are borne pro rata by the holders of
each class of shares.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities, and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amount of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.
A. SECURITY VALUATION:
Investments in the underlying funds are valued at each fund's net asset
value determined as of the close of business of the New York Stock Exchange
(generally 4:00 p.m. Eastern time).
As required, some securities and assets may be valued at fair value as
determined in good faith by or under the direction of the Trustees.
Short-term investments having a remaining maturity of 60 days or less are
valued at amortized cost, which approximates market.
In September 2006, Statement of Financial Accounting Standards No. 157,
"Fair Value Measurements" ("SFAS 157"), was issued and is effective for fiscal
years beginning after November 15, 2007. SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Fund's financial statement disclosures.
B. SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are recorded on the trade date. Dividend income is
recorded on the ex-dividend date, or in the case of certain foreign securities,
as soon as the Fund is notified. Interest income is recorded on the accrual
basis. Each Fund amortizes premiums and accretes discounts using the effective
interest method. Realized gains and losses are determined on the identified cost
basis.
C. 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 and to distribute substantially all of its taxable income to its
shareholders. Therefore, no provision for federal income taxes or excise taxes
has been made.
In June 2006, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation 48 ("FIN 48"), "Accounting for Uncertainty in Income Taxes." This
standard defines the threshold for recognizing the benefits of tax-return
positions in the financial statements as "more-likely-than-not" to be sustained
by the taxing authority and requires measurement of a tax position meeting the
more-likely-than-not criterion, based on the largest benefit that is more than
50 percent likely to be realized. FIN 48 is effective six months following the
end of the fiscal year ended July 31, 2007. At adoption, companies must adjust
their financial statements to reflect only those tax positions that are
more-likely-than-not to be sustained as of the adoption date. The evaluation by
Management of the impact that may result from adoption FIN 48 is in progress.
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
29
PHOENIX PHOLIOS(SM)
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2007 (CONTINUED)
and discount, non-deductible expenses, expiring capital loss carryovers, foreign
currency gain or loss, gain or loss on futures contracts, partnerships,
operating losses and losses deferred due to wash sales. Permanent book and tax
basis differences relating to shareholder distributions will result in
reclassifications to capital paid in on shares of beneficial interest.
E. 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
appropriately made. In addition to the Net Annual Operating Expenses that the
Funds bear directly, the shareholders indirectly bear the Fund's pro-rata
expenses of the underlying mutual funds in which each Fund invests.
3. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
Phoenix Investment Counsel, Inc. ("PIC") (the "Adviser") is the Adviser to
each Fund of the Trust. As compensation for its services to each Fund of the
Trust, PIC, an indirect, wholly-owned subsidiary of The Phoenix Companies, Inc.
("PNX"), is entitled to a fee at an annual rate of 0.10% of the average daily
net assets of each Fund.
As a Fund of funds, however, each underlying mutual fund's adviser manages
the daily investments of the underlying mutual fund's portfolio and receives a
management fee for this service from the underlying funds.
The Adviser has contractually agreed to limit each Fund's total operating
expenses (excluding 12b-1 fees, acquired fund fees and expenses, interest,
taxes, and extraordinary expenses) through November 30, 2007, so that each
Fund's expenses do not exceed the following percentages of average annual net
assets:
Class A Class C
Shares Shares
------- -------
Wealth Accumulator PHOLIO(1) .............................. 0.20% 0.20%
Wealth Builder PHOLIO(1) .................................. 0.20% 0.20%
Wealth Guardian PHOLIO(1) ................................. 0.20% 0.20%
Diversifier PHOLIO ........................................ 0.20% 0.20%
(1) Prior to June 15, 2007, the Adviser had limited such expenses to 0.00% for
Class A and Class C shares.
The expense limitations include expenses incurred as a result of investing
in other investment companies.
The Adviser will voluntarily continue the arrangement beyond the
contractual period, but may discontinue such voluntary arrangement at any time.
The Adviser will not seek to recapture any reimbursed expenses under these
arrangements unless authorized by the Board of Trustees.
As distributor of each Fund's shares, Phoenix Equity Planning Corporation
("PEPCO"), an indirect, wholly-owned subsidiary of PNX, has advised the Funds
that it retained net selling commissions and deferred sales charges for the
fiscal year (the "period") ended July 31, 2007, as follows:
Class A Class C
Net Selling Deferred
Commissions Sales Charges
----------- -------------
Wealth Accumulator PHOLIO ........................ $ 7,839 $ 3,246
Wealth Builder PHOLIO ............................ 26,050 10,448
Wealth Guardian PHOLIO ........................... 11,616 3,782
Diversifier PHOLIO ............................... 121,211 15,757
In addition, each Fund pays PEPCO distribution and/or service fees at an
annual rate of 0.75% for Class C shares applied to the average daily net assets
of Class C. To avoid duplication of distribution and/or service fees, each class
of shares of the funds has reduced the distribution and/or service fees by the
amount of the underlying affiliated mutual funds' Class A and Class Y
distribution and/or service fees.
Under certain circumstances, shares of certain Phoenix Funds may be
exchanged for shares of the same class of certain other Phoenix Funds on the
basis of the relative net asset values per share at the time of the exchange. On
exchanges with share classes that carry a contingent deferred sales charge, the
CDSC schedule of the original shares purchased continues to apply.
PEPCO serves as the administrator to the Trust. For its services, PEPCO
receives an administration fee at an annual rate of 0.09% of the first $5
billion, 0.08% on the next $10 billion and 0.07% over $15 billion of the average
net assets across all non-money market funds in the Phoenix Funds and The
Phoenix Edge Series Fund.
For the period ended July 31, 2007, the Trust incurred administration fees
totaling $226,568.
PEPCO serves as the Trust's Transfer Agent with Boston Financial Data
Services, Inc. serving as sub-transfer agent. For the period ended July 31,
2007, transfer agent fees were $334,190 as reported in the Statements of
Operations.
At July 31, 2007, PNX and its affiliates and the retirement plans of PNX
and its affiliates, held shares which aggregated the following:
Aggregate Net
Shares Asset Value
------ -------------
Diversifier PHOLIO
Class C ............................................ 10,166 $ 112,538
Until March 1, 2007, the Trust provided a deferred compensation plan to
its trustees who were not officers of PNX. Under the deferred compensation plan,
trustees were able to elect to defer all or a portion of their compensation.
Amounts deferred were retained by the Fund, and to the extent permitted by the
1940 Act, as amended, could have been invested in the shares of those funds
selected by the trustees. Investments in such funds are included in "Other
assets" on the Statements of Assets and Liabilities at July 31, 2007.
30
PHOENIX PHOLIOS(SM)
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2007 (CONTINUED)
4. PURCHASES AND SALES OF UNDERLYING FUNDS
Purchases and sales of the underlying funds for the year ended July 31,
2007, were as follows:
Purchases Sales
------------ -----------
Wealth Accumulator PHOLIO ......................... $ 11,229,473 $ 4,793,109
Wealth Builder PHOLIO ............................. 57,154,061 60,740,602
Wealth Guardian PHOLIO ............................ 25,056,263 24,719,986
Diversifier PHOLIO ................................ 164,060,189 7,371,173
There were no purchases or sales of long-term U.S. Government and agency
securities.
5. 10% SHAREHOLDERS
As of July 31, 2007, certain Funds had individual shareholder accounts
and/or omnibus shareholder accounts (which are comprised of a group of
individual shareholders), which amounted to more than 10% of the total shares
outstanding of the fund as detailed below.
% Shares Number of
Outstanding Accounts
----------- ---------
Wealth Accumulator PHOLIO ............................ 17% 1
Wealth Builder PHOLIO ................................ 33 1
Wealth Guardian PHOLIO ............................... 33 1
Diversifier PHOLIO ................................... 42 2
The shareholder accounts are not affiliated with PNX.
The Funds do not invest in the underlying funds for the purpose of
exercising management or control; however, investments made by each Fund within
each of its principal investment strategies may represent a significant portion
of an underlying fund's net assets. At July 31, 2007, the Funds were the owner
of record of the following approximate percentages of the total outstanding
shares of the underlying funds as detailed below:
Wealth Wealth
Builder Guardian Diversifier
PHOLIO PHOLIO PHOLIO
------- -------- -----------
Phoenix Bond Fund
Class A .................................. 12% 12% --
Phoenix Dynamic Growth Fund
Class A .................................. 40 13 --
Phoenix Global Utilities Fund
Class A .................................. -- -- 64%
Phoenix Growth Opportunities Fund
Class A .................................. 30 11 --
Phoenix Institutional Bond Fund
Class Y .................................. 10 -- --
Phoenix International Strategies Fund
Class A .................................. 13 -- --
Phoenix Market Neutral Fund
Class A .................................. 13 -- 35
Phoenix Quality Small-Cap Fund
Class A .................................. 14 -- --
Phoenix Small-Cap Sustainable Growth Fund
Class A .................................. 16 -- --
Phoenix Value Opportunities Fund
Class A .................................. 15 -- --
The investments of the Wealth Accumulator PHOLIO do not represent greater
than 10% of the underlying funds' total outstanding shares.
6. CREDIT RISK AND ASSET CONCENTRATIONS
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.
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.
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.
7. INDEMNIFICATIONS
Under the Funds' organizational documents, their trustees and officers are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, the Funds enter into contracts that contain a
variety of indemnifications. The Funds' maximum exposure under these
arrangements is unknown. However, the Funds have not had prior claims or losses
pursuant to these arrangements.
8. REGULATORY EXAMS
Federal and state regulatory authorities from time to time make inquiries
and conduct examinations regarding compliance by The Phoenix Companies, Inc. and
its subsidiaries (collectively "the Company") with securities and other laws and
regulations affecting their registered products. During 2004 and 2005, the
Boston District Office of the Securities and Exchange Commission ("SEC")
conducted an examination of the Company's investment company and investment
adviser affiliates. Following the examination, the staff of the SEC Boston
District Office issued a deficiency letter noting perceived weaknesses in
procedures for monitoring trading to prevent market timing activity prior to
2004. The staff requested the Company to conduct an analysis as to whether
shareholders, policyholders and contract holders who invested in the funds that
may have been affected by undetected market timing activity had suffered harm
and to advise the staff whether the Company believes reimbursement is necessary
or appropriate under the circumstances. Market timing is an investment technique
involving frequent short-term trading of mutual fund shares that is designed to
31
PHOENIX PHOLIOS(SM)
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2007 (CONTINUED)
exploit market movements or inefficiencies in the way mutual fund companies
price their shares. A third party was retained to assist the Company in
preparing the analysis. In 2005, based on the third party analysis, the Company
notified the staff at the SEC Boston District Office that reimbursements were
not appropriate under the circumstances.
In February 2005, the NASD notified PNX that it was asserting violations
of trade reporting rules by a subsidiary. PNX responded to the NASD allegations
in May 2005. Thereafter, in January 2007, the NASD notified PNX that the matter
is being referred for potential violations and possible action. On May 3, 2007,
the NASD accepted a letter of acceptance, waiver and consent submitted by the
PXP subsidiary to resolve this matter. Without admitting or denying the NASD's
findings, in accordance with the terms of the letter the PXP subsidiary agreed
to a censure, to pay a fine of $8 thousand and to revise its supervisory
procedures.
The Company does not believe that the outcome of these matters will be
material to these financial statements.
9. EXEMPTIVE ORDER
On June 5, 2006, the SEC issued an order under Section 12(d) (1) (J) of
the Investment Company Act ("1940 Act") granting an exemption from Sections
12(d) (1) (A) and (B) of the 1940 Act and under Sections 6(c) and 17(b) of the
1940 Act granting an exemption from Section 17(a) of the 1940 Act, which permits
the Trust to invest in other affiliated and unaffiliated funds, including
exchange traded funds.
10. FEDERAL INCOME TAX INFORMATION
The components of distributable earnings on a tax basis (excluding
unrealized appreciation (depreciation) which is disclosed in the Schedules of
Investments), consist of undistributed ordinary income and undistributed
long-term capital gains as follows:
Undistributed
Undistributed Long-term
Ordinary Income Capital Gains
--------------- -------------
Wealth Accumulator PHOLIO .................... $ 41,271 $ 141,104
Wealth Builder PHOLIO ........................ 560,537 5,966,203
Wealth Guardian PHOLIO ....................... 370,383 1,770,200
Diversifier PHOLIO ........................... 283,704 746,264
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
Statements of Changes in Net Assets, if any, are reported as ordinary income for
federal tax purposes.
11. RECLASSIFICATION OF CAPITAL ACCOUNTS
For financial reporting purposes, book basis capital accounts are adjusted
to reflect the tax character of permanent book/tax differences. Permanent
reclassifications can arise from differing treatment of certain income and gain
transactions, nondeductible current year net operating losses, expiring capital
loss carryovers and investments in passive foreign investment companies. The
reclassifications have no impact on the net assets or net asset value of the
Funds. For the year ended July 31, 2007, the following Funds recorded
reclassifications to increase (decrease) the accounts as listed below:
Capital Paid
in on Shares Accumulated Undistributed
of Beneficial Net Realized Net Investment
Interest Gain (Loss) Income (Loss)
------------- ------------ --------------
Wealth Accumulator PHOLIO ..... $ -- $ (249,209) $ 249,209
Wealth Builder PHOLIO ......... -- (2,470,671) 2,470,671
Wealth Guardian PHOLIO ........ -- (935,660) 935,660
Diversifier PHOLIO ............ -- (294,538) 294,538
32
PHOENIX PARTNER SELECT FUNDS
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
12. SUBSEQUENT EVENT
Effective September 24, 2007, the Phoenix Wealth Accumulator PHOLIO,
Phoenix Wealth Builder PHOLIO, Phoenix Wealth Guardian PHOLIO and the Phoenix
Diversifier PHOLIO, each a Fund of Phoenix PHOLIOs (each, a "Predecessor Fund"),
will be reorganized into funds named Phoenix Wealth Accumulator PHOLIO, Phoenix
Wealth Builder PHOLIO, Phoenix Wealth Guardian PHOLIO and the Phoenix
Diversifier PHOLIO, each a Fund of Phoenix Opportunities Trust (each, a
"Successor Fund"). The Successor Funds' principal investment strategies, risks,
fees and expenses, and portfolio management team will be the same as those of
the Predecessor Funds.
- --------------------------------------------------------------------------------
TAX INFORMATION
(UNAUDITED)
For the fiscal year ended July 31, 2007, for federal income tax purposes,
the percentages of the ordinary income dividends earned by the funds qualify for
the dividends received deduction for corporate shareholders as detailed below:
Wealth Accumulator PHOLIO ........................... 16.7%
Wealth Builder PHOLIO ............................... 15.5
Wealth Guardian PHOLIO .............................. 10.5
Diversifier PHOLIO .................................. 52.9
For the fiscal year ended July 31, 2007, the funds hereby designate the
below percentages, or the maximum amount allowable, of its ordinary income
dividends to qualify for the lower tax rates applicable to individual
shareholders:
Wealth Accumulator PHOLIO ........................... 29.0%
Wealth Builder PHOLIO ............................... 25.5
Wealth Guardian PHOLIO .............................. 16.9
Diversifier PHOLIO .................................. 66.4
The actual percentage for the calendar year will be designated in the
year-end tax statements.
For the fiscal year ended July 31, 2007, the funds designated the amounts
below, or if subsequently different, as long-term capital gains dividends:
Wealth Accumulator PHOLIO ........................... $ 141,565
Wealth Builder PHOLIO ............................... 6,196,653
Wealth Guardian PHOLIO .............................. 1,878,255
Diversifier PHOLIO .................................. 749,351
- --------------------------------------------------------------------------------
33
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
[PRICEWATERHOUSECOOPERS LOGO]
To the Board of Trustees of
Phoenix PHOLIOs and Shareholders of
Phoenix Wealth Accumulator PHOLIO
Phoenix Wealth Builder PHOLIO
Phoenix Wealth Guardian PHOLIO and
Phoenix Diversifier PHOLIO
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 Wealth Accumulator PHOLIO,
Phoenix Wealth Builder PHOLIO, Phoenix Wealth Guardian PHOLIO, and Phoenix
Diversifier PHOLIO (constituting Phoenix PHOLIOs, hereafter referred to as the
"Funds") at July 31, 2007, the results of each of their operations for the year
then ended, the changes in each of their net assets for the two years in the
period then ended and the financial highlights for each of 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
Funds' 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 the standards of the Public Company
Accounting Oversight Board (United States). Those standards 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 July
31, 2007 by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion.
/s/ PRICEWATERHOUSECOOPERS LLP
Boston, Massachusetts
September 13, 2007
34
BOARD OF TRUSTEES' CONSIDERATION OF INVESTMENT SUBADVISORY AGREEMENT FOR PHOENIX
DIVERSIFIER PHOLIO, PHOENIX WEALTH ACCUMULATOR PHOLIO, PHOENIX WEALTH BUILDER
PHOLIO AND PHOENIX WEALTH GUARDIAN PHOLIO (EACH, A "FUND") JULY 31, 2007
(UNAUDITED)
The Board of Trustees (the "Board") is responsible for determining whether
to approve each Fund's investment advisory and subadvisory agreements. At a
meeting held on March 1, 2007, the Board, including a majority of the
independent Trustees, approved a subadvisory agreement (the "Subadvisory
Agreement") between PIC and Goodwin Capital Advisers, Inc. ("Goodwin" or
"Subadvisor"). The advisory agreement (the "Advisory Agreement") between Phoenix
Investment Counsel, Inc. ("PIC" or "Advisor") and each Fund was previously
reapproved on November 16, 2006. Pursuant to the Advisory Agreement, PIC
provides advisory services to each Fund. Effective April 1, 2007, Goodwin became
Subadvisor to each Fund as a result of a restructuring of the advisory services
provided to each Fund. Each Fund relied upon an opinion of counsel to determine
that adding Goodwin as a subadvisor to each Fund did not constitute an
assignment of the Advisory Agreement under the Investment Company Act of 1940
because the Advisor and Goodwin are under common management and control and the
same investment personnel at PIC would continue to provide investment services
to the Funds at Goodwin. Pursuant to the Subadvisory Agreement, the Subadvisor
provides the day-to-day investment management for each Fund.
During the review process, the Board received assistance and advice from,
and met separately with, independent legal counsel. In approving the Subadvisory
Agreement, the Board, including a majority of the independent Trustees,
determined that the fee structure was fair and reasonable and that approval of
the agreement was in the best interests of each Fund and its shareholders. While
attention was given to all information furnished, the following discusses the
primary factors relevant to the Board's decisions.
NATURE, EXTENT AND QUALITY OF SERVICES. The Board concluded that the
nature, extent and quality of the overall services to be provided by the
Subadvisor to each Fund would be reasonable. The Board's opinion was based, in
part, upon the fact that effective January 1, 2007, the fixed income division of
PIC became affiliated with a separate registered investment advisor known as
Goodwin Capital Advisers, Inc. Previously, Goodwin, an affiliate of PIC, had
operated under another name. The Board noted that the portfolio management team
had an average of over 16 years of experience in the investment management
business and this team would continue to serve the Funds in the same manner
under the Goodwin name. Because of Goodwin's previous and continued affiliation
with PIC and the portfolio management team's extensive experience, the Board
concluded that the nature, extent and quality of services would continue.
Turning to compensation, the Board noted that a primary factor in the
Subadvisor's determination of the amount of bonus compensation to be paid to
portfolio managers was the relative investment performance of the funds that
they managed, which would align their interests with those of the Fund's
shareholders. The Board also considered and was satisfied with the adequacy of
the Subadvisor's compliance program.
INVESTMENT PERFORMANCE. The Board placed significant emphasis on the
investment performance of each Fund in view of its importance to shareholders.
While consideration was given to performance reports and discussions at Board
meetings throughout the year, particular attention in assessing the performance
was given in a report for the Funds prepared by Lipper and reviewed by the Board
for a November 15-16, 2006 Board meeting. For Phoenix Diversifier PHOLIO, the
Lipper report showed the investment performance of the Fund's Class A shares for
the year-to-date period ended September 30, 2006. For Phoenix Wealth Accumulator
PHOLIO, the Lipper report showed the investment performance of the Fund's Class
A shares for the 1 year and the year-to-date periods ended September 30, 2006.
For each of the Phoenix Wealth Builder PHOLIO and Phoenix Wealth Guardian
PHOLIO, the Lipper report showed the investment performance of each Fund's Class
C shares for the 1 and 3 year periods ended September 30, 2006 and the year to
date period ended September 30, 2006. The Board reviewed the investment
performance of each Fund, along with comparative performance information of a
peer group of funds and a relevant market index. The Board noted that for
Phoenix Diversifier PHOLIO, although it trailed its benchmark, the Fund had
exceeded the Lipper peer group average for its investment style for the
year-to-date period and concluded that the Fund's performance was reasonable,
particularly given the short history with the Fund commencing operation as of
November 30, 2005. The Board noted that for Phoenix Wealth Accumulator PHOLIO,
although it trailed its benchmark, the Fund had exceeded the Lipper peer group
average for its investment style for the 1 year and the year-to-date periods and
concluded that the Fund's performance was reasonable. The Board noted that for
Phoenix Wealth Builder PHOLIO, the Fund had outperformed its benchmark over all
periods, and noted the Fund's performance relative to its Lipper peer group had
improved during the recent year to date and 1 year periods, and concluded that
the Fund's performance was reasonable. The Board noted that for Phoenix Wealth
Guardian PHOLIO, the Fund's performance for all periods ending September 30,
2006 was below average relative to its peer group and that the Fund had
underperformed its
35
BOARD OF TRUSTEES' CONSIDERATION OF INVESTMENT SUBADVISORY AGREEMENT FOR PHOENIX
DIVERSIFIER PHOLIO, PHOENIX WEALTH ACCUMULATOR PHOLIO, PHOENIX WEALTH BUILDER
PHOLIO AND PHOENIX WEALTH GUARDIAN PHOLIO (EACH, A "FUND") JULY 31, 2007
(UNAUDITED) (CONTINUED)
benchmark over the same periods, but it also noted the Fund's performance
relative to its Lipper peer group was improving during the recent year-to-date
and 1 year periods. After discussion, the Board concluded that performance was
acceptable given management's comments regarding attribution and the steps
management had undertaken to improve the Funds' performance and diversification.
PROFITABILITY. The Board did not separately review profitability
information for the Subadvisor because the Subadvisor is a wholly-owned
subsidiary of the Advisor whose profitability is periodically reviewed.
SUBADVISORY FEE. The Board reviewed the proposed subadvisory fee for each
Fund and determined that each fee was in line with industry standards. The Board
also noted that the subadvisory fee is paid by PIC and not by each Fund.
ECONOMIES OF SCALE. The Board also considered the existence of any
economies of scale and whether those economies would be passed along to each
Fund's shareholders, but noted that any economies would be generated with
respect to PIC, because PIC pays the subadvisory fee.
36
RESULTS OF SHAREHOLDER MEETING
PHOENIX PHOLIOS(SM)
(UNAUDITED)
At a special meeting of shareholders of Phoenix PHOLIOs(SM) (the "Trust")
held on October 31, 2006, shareholders voted on the following proposals:
NUMBER OF ELIGIBLE UNITS VOTED:
FOR AGAINST
---------- ---------
To elect eleven Trustees to serve on the Board
of Trustees until the next meeting of
shareholders at which Trustees are elected.
E. Virgil Conway ................................... 98,102,072 2,342,054
Harry Dalzell-Payne ................................ 98,112,213 2,331,913
Daniel T. Geraci ................................... 98,112,213 2,331,913
Francis E. Jeffries ................................ 98,112,213 2,331,913
Leroy Keith, Jr. ................................... 98,087,253 2,356,873
Marilyn E. LaMarche ................................ 98,112,213 2,331,913
Philip R. McLoughlin ............................... 98,059,970 2,384,157
Geraldine M. McNamara .............................. 98,112,213 2,331,913
James M. Oates ..................................... 98,101,169 2,342,957
Richard E. Segerson ................................ 98,112,213 2,331,913
Ferdinand L.J. Verdonck ............................ 98,112,213 2,331,913
FOR AGAINST ABSTAIN
---------- --------- ---------
To ratify the appointment of
PricewaterhouseCoopers LLC as the independent
registered public accounting firm ..................... 97,319,831 649,333 2,474,963
37
RESULTS OF SHAREHOLDER MEETING
PHOENIX PHOLIOS(SM)
NOVEMBER 21, 2006
(UNAUDITED)
At a special meeting of shareholders of Phoenix Diversifier PHOLIO,
Phoenix Wealth Accumulator PHOLIO, Phoenix Wealth Builder PHOLIO and Phoenix
Wealth Guardian PHOLIO (each a "Fund"), series of Phoenix PHOLIOs(SM) (the
"Trust") held on November 21, 2006, shareholders voted on the following
proposals:
NUMBER OF ELIGIBLE UNITS VOTED:
FOR AGAINST ABSTAIN BROKER NON-VOTES
--------- --------- ----------- ----------------
To approve a proposal to permit Phoenix Investment
Counsel, Inc. ("PIC") to hire and replace subadvisers or
to modify subadvisory agreements without shareholder
approval.
o Phoenix Diversifier PHOLIO ......................................... 127,473 0 14,464 35,569
o Phoenix Wealth Accumulator PHOLIO .................................. 208,842 10,931 15,080 49,845
o Phoenix Wealth Builder PHOLIO ...................................... 3,443,616 379,567 117,294 1,734,959
o Phoenix Wealth Guardian PHOLIO ..................................... 2,086,843 84,748 110,659 622,128
To approve the amendment of fundamental restrictions
of the Fund with respect to loans.
o Phoenix Diversifier PHOLIO. ........................................ 127,473 1,448 13,016 35,569
o Phoenix Wealth Accumulator PHOLIO .................................. 204,576 15,068 15,210 49,845
o Phoenix Wealth Builder PHOLIO ...................................... 3,426,540 385,268 128,670 1,734,959
o Phoenix Wealth Guardian PHOLIO ..................................... 2,098,870 61,969 121,412 622,128
To approve a proposal to reclassify the investment
objective of the Investment Objective Funds from
fundamental to non-fundamental.
o Phoenix Wealth Builder PHOLIO ...................................... 3,411,694 398,714 130,069 1,734,959
o Phoenix Wealth Guardian PHOLIO ..................................... 2,094,128 71,926 116,196 622,128
Shareholders did NOT approve these proposals for the Phoenix Wealth Builder
PHOLIO.
38
FUND MANAGEMENT TABLES (UNAUDITED)
Information pertaining to the Trustees and officers of the Trust as of
July 31, 2007, 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 AND LENGTH OF OVERSEEN BY DURING PAST 5 YEARS AND
DATE OF BIRTH TIME SERVED TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
E. Virgil Conway Served since 56 Chairman, Rittenhouse Advisors, LLC (consulting firm) (2001-present).
DOB: 8/2/29 1993. Trustee/Director, Phoenix Funds Family (1983-present), Director, Urstadt
Biddle Property Corp. (1989-present), Consolidated Edison Company of New
York, Inc. (1970-2002), Union Pacific Corp. (1978-2002), Accuhealth, Inc.
(1994-2002).
- ------------------------------------------------------------------------------------------------------------------------------------
Harry Dalzell-Payne Served since 56 Retired. Trustee/Director, Phoenix Funds Family (1983-present).
DOB: 9/8/29 1993.
- ------------------------------------------------------------------------------------------------------------------------------------
Francis E. Jeffries Served since 59 Director, The Empire District Electric Company (1984-2004).
DOB: 9/23/30 1995. Trustee/Director, Phoenix Funds Complex (1987-present).
- ------------------------------------------------------------------------------------------------------------------------------------
Leroy Keith, Jr. Served since 56 Managing Director, Almanac Capital Management (commodities business) (since
DOB: 2/14/39 1993. 2007). Director/Trustee, Evergreen Funds (88 portfolios) (1989-present)
Trustee, Phoenix Funds Family (1980-present). Director, Lincoln Educational
Services Corp. (2002-2004). Partner, Stonington Partners, Inc. (private
equity firm) (2001-2007).
- ------------------------------------------------------------------------------------------------------------------------------------
Geraldine M. McNamara Served since 58 Retired. Trustee/Director, Phoenix Funds Complex (2001-present). Managing
DOB: 4/17/51 2001. Director, U.S. Trust Company of New York (private bank) (1982-2006).
- ------------------------------------------------------------------------------------------------------------------------------------
James M. Oates Served since 56 Trustee/Director, Phoenix Funds Family (1987-present). Managing Director,
DOB: 5/31/46 1993. Wydown Group (consulting firm) (1994-present). Director, Investors Bank &
Trust Corporation (1995-present), Stifel Financial (1996-present).
Independent Chairman (2005-present) and Trustee (2004-present), John
Hancock Trust (93 portfolios). Trustee, John Hancock Funds II (74
portfolios) (2005-present). Director/Trustee, Plymouth Rubber Co.
(1995-2003). Chairman, Hudson Castle Group, Inc. (Formerly IBEX Capital
Markets, Inc.) (financial services) (1997-2006). Trustee, John Hancock
Funds III (8 portfolios) (2005-2006).
- ------------------------------------------------------------------------------------------------------------------------------------
39
FUND MANAGEMENT TABLES (UNAUDITED) (CONTINUED)
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS IN
FUND COMPLEX PRINCIPAL OCCUPATION(S)
NAME, ADDRESS LENGTH OF OVERSEEN BY DURING PAST 5 YEARS AND
AND DATE OF BIRTH TIME SERVED TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
Richard E. Segerson Served since 56 Managing Director, Northway Management Company (1998-present). Trustee/
DOB: 2/16/46 1993. Director, Phoenix Funds Family (1983-present).
- ------------------------------------------------------------------------------------------------------------------------------------
Ferdinand L.J. Verdonck Served since 56 Chairman, Amsterdam Molecular Therapeutics N.V. (biotechnology) (since
DOB: 7/30/42 2006. 2007). Director, The JP Morgan European Investment Trust (1998-present),
Galapagos N.V. (biotechnology) (2005-present). Trustee, Phoenix Funds
Family (2004-present). Director, EASDAQ (Chairman) (2001-present), Groupe
SNEF (electrical and electronic installation) (1998-present). Managing
Director, Almanij N.V. (financial holding company) (1992-2003). Director,
KBC Bank and Insurance Holding Company (1992-2003), KBC Bank (1992-2003),
KBC Insurance (1992-2003), Kredietbank S.A. Luxembourgeoise (1992-2003),
Investco N.V. (private equity company) (1992-2003), Gevaert N.V.
(industrial holding company) (1992-2003), Fidea N.V. (insurance company)
(1992-2003), Almafin N.V. (real estate investment company) (1992-2003),
Centea N.V. (savings bank) (1992-2003), Degussa Antwerpen N.V.
(1998-2004), Santens N.V. (textiles) (1999-2004), Dictaphone Corp.
(2002-2006), Banco Urquijo(Chairman) (1998-2006).
- ------------------------------------------------------------------------------------------------------------------------------------
40
FUND MANAGEMENT TABLES (UNAUDITED) (CONTINUED)
INTERESTED TRUSTEES
Each of the individuals listed below is an "interested person" of the
Fund, as defined in Section 2(a)(19) of the Investment Company Act of 1940, as
amended, and the rules and regulations thereunder.
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS IN
FUND COMPLEX PRINCIPAL OCCUPATION(S)
NAME, ADDRESS LENGTH OF OVERSEEN BY DURING PAST 5 YEARS AND
AND DATE OF BIRTH TIME SERVED TRUSTEE OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
George R. Aylward(1) Served since 56 Senior Executive Vice President and President, Asset Management (since
DOB: 8/17/64 November 2006), Senior Vice President and Chief Operating Officer, Asset
2006. Management (2004-2007), Vice President (2001-2004), The Phoenix
Companies, Inc. Director and President (2006-present), Chief Operating
Officer (2004-2006), Executive Vice President (2004-2006), Vice
President, Finance, (2001-2002), Phoenix Investment Partners, Ltd.
Various senior officer and directorship positions with Phoenix
affiliates. President (2006-present), Executive Vice President(2004-2006),
the Phoenix Funds Family. Chairman, President and Chief Executive Officer,
The Zweig Fund Inc. and The Zweig Total Return Fund Inc. (2006-present).
- ------------------------------------------------------------------------------------------------------------------------------------
Marilyn E. LaMarche(2) Served since 56 Limited Managing Director, Lazard Freres & Co. LLC (1997-present).
DOB: 5/11/34 2002. Trustee/Director, Phoenix Funds Family (2002-present). Director, The
Phoenix Companies, Inc. (2001-2005).
- ------------------------------------------------------------------------------------------------------------------------------------
Philip R. McLoughlin(3) Served since 76 Partner, Cross Pond Partners, LLC (2006-Present). Director, PXRE
DOB: 10/23/46 1999. Corporation (Reinsurance) (1985-present), World Trust Fund
(1991-present). Director/ Trustee, Phoenix Funds Complex (1989-present).
Chairman Management Consultant (2002-2004), Chairman (1997-2002), Chief Executive
Officer (1995-2002) and Director (1995-2002), Phoenix Investment
Partners, Ltd. Director and Executive Vice President, The Phoenix
Companies, Inc. (2000-2002). Director (1983-2002) and Chairman
(1995-2002), Phoenix Investment Counsel, Inc. Director (1982-2002) and
Chairman (2000-2002), Phoenix Equity Planning Corporation. Chairman and
President, Phoenix/Zweig Advisers LLC (2001-2002). Executive Vice
President (1994-2002) and Chief Investment Counsel (1994-2002), PHL
Variable Insurance Company.
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Mr. Aylward is an "interested person," as defined in the Investment
Company Act of 1940, by reason of his position with Phoenix Investment
Partners, Ltd. and its affiliates.
(2) Ms. LaMarche is an "interested person," as defined in the Investment
Company Act of 1940, by reason of her former position as Director of The
Phoenix Companies, Inc.
(3) Mr. McLoughlin is an "interested person," as defined in the Investment
Company Act of 1940, by reason of his former relationship with Phoenix
Investment Partners, Ltd. and its affiliates.
41
FUND MANAGEMENT TABLES (UNAUDITED) (CONTINUED)
OFFICERS OF THE TRUST WHO ARE NOT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
POSITION(S) HELD WITH
NAME, ADDRESS AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S)
DATE OF BIRTH TIME SERVED DURING PAST 5 YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
Nancy G. Curtiss Senior Vice President Assistant Treasurer (2001-present), Vice President, Fund Accounting (1994-2000),
DOB: 11/24/52 since 2006. Phoenix Equity Planning Corporation. Vice President, Phoenix Investment Partners,
Ltd. (2003-present). Senior Vice President, the Phoenix Funds Family(since 2006).
Vice President, The Phoenix Edge Series Fund (1994-present), Treasurer, The Zweig
Fund Inc. and The Zweig Total Return Fund Inc. (2003-present). Chief Financial
Officer (2005-2006) and Treasurer (1994-2006), or Assistant Treasurer (2005-2006),
certain funds within the Phoenix Fund Complex.
- ------------------------------------------------------------------------------------------------------------------------------------
Francis G. Waltman Senior Vice President Senior Vice President, Asset Management Product Development, The Phoenix Companies,
DOB: 7/27/62 since 2004. Inc. (since 2006). Senior Vice President, Asset Management Product Development,
Phoenix Investment Partners, Ltd. (2005-present). Director and President, Phoenix
Equity Planning Corporation (since 2006). Senior Vice President, Phoenix Investment
Counsel, Inc. (since 2006). Director, DPCM Holdings, Inc., Duff & Phelps Investment
Management Company and Pasadena Capital Corporation (since 2006). President, PXP
Securities Corp. (2004-present). Senior Vice President, the Phoenix Funds Family
(2004-present). Senior Vice President and Chief Administrative Officer, Phoenix
Investment Partners, Ltd., (2003-2004). Senior Vice President and Chief
Administrative Officer, Phoenix Equity Planning Corporation (1999-2003).
- ------------------------------------------------------------------------------------------------------------------------------------
Marc Baltuch Vice President and Chief Compliance Officer, Zweig-DiMenna Associates President and Chief Compliance
c/o Zweig-Dimenna Chief Compliance Officer Officer, certain Funds within the Phoenix Fund LLC (1989-present). Vice Complex
Associates, LLC since 2004. (2004-present). Vice President, The Zweig Total Return Fund, Inc. (2004-present).
900 Third Avenue Vice President, The Zweig Fund, Inc. (2004-present). President and Director of
New York, NY 10022 Watermark Securities, Inc. (1991-present). Assistant Secretary of Gotham Advisors
DOB: 9/23/45 Inc. (1990-present). Secretary, Phoenix-Zweig Trust (1989-2003). Secretary,
Phoenix-Euclid Market Neutral Fund (1999-2002).
- ------------------------------------------------------------------------------------------------------------------------------------
W. Patrick Bradley Chief Financial Officer Vice President, Fund Administration, Phoenix Investment Partners, Ltd.
DOB: 3/2/72 and Treasurer since (2004-present). Chief Financial Officer and Treasurer (2006-present) or Chief
2006. Financial Officer and Treasurer (2005-present), certain funds within the Phoenix
Fund Family. Vice President, Chief Financial Officer, Treasurer and Principal
Accounting Officer, The Phoenix Edge Series Fund (2006-present). Assistant
Treasurer, certain funds within the Phoenix Fund Complex (2004-2006). Senior Manager
(2002-2004), Manager (2000-2002), Audit, Deloitte & Touche, LLP.
- ------------------------------------------------------------------------------------------------------------------------------------
Kevin J. Carr Vice President, Vice President and Counsel, Phoenix Life Vice President, Counsel, Chief Legal
One American Row Chief Legal Officer, Officer and Secretary, the Phoenix Fund Insurance Company (2005-present). Family
Hartford, CT 06102 Counsel and Secretary (2005-present). Compliance Officer of Investments and Counsel, Travelers Life &
DOB: 8/30/54 since 2005. Annuity Company (January 2005-May 2005). Assistant General Counsel, The Hartford
Financial Services Group (1999-2005).
- ------------------------------------------------------------------------------------------------------------------------------------
42
PHOENIX PHOLIOS(SM)
101 Munson Street
Greenfield, MA 01301-9668
TRUSTEES INVESTMENT ADVISER
George R. Aylward Phoenix Investment Counsel, Inc.
E. Virgil Conway 56 Prospect Street
Harry Dalzell-Payne Hartford, CT 06115-0480
Francis E. Jeffries
Leroy Keith, Jr. PRINCIPAL UNDERWRITER
Marilyn E. LaMarche Phoenix Equity Planning Corporation
Philip R. McLoughlin, Chairman One American Row
Geraldine M. McNamara Hartford, CT 06103-2899
James M. Oates
Richard E. Segerson TRANSFER AGENT
Ferdinand L.J. Verdonck Phoenix Equity Planning Corporation
One American Row
Hartford, CT 06103-2899
OFFICERS
George R. Aylward, President CUSTODIAN
Nancy G. Curtiss, Senior Vice President State Street Bank and Trust Company
Francis G. Waltman, Senior Vice President P.O. Box 5501
Marc Baltuch, Vice President and Boston, MA 02206-5501
Chief Compliance Officer
W. Patrick Bradley, Chief Financial Officer INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
and Treasurer PricewaterhouseCoopers LLP
Kevin J. Carr, Vice President, Counsel, 125 High Street
Secretary and Chief Legal Officer Boston, MA 02110-1707
HOW TO CONTACT US
Mutual Fund Services 1-800-243-1574
Advisor Consulting Group 1-800-243-4361
Telephone Orders 1-800-367-5877
Text Telephone 1-800-243-1926
Web site PHOENIXFUNDS.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.
- --------------------------------------------------------------------------------
43
This page intentionally left blank.
-------------
[LOGO] PRSRT STD
U.S. POSTAGE
PHOENIX PAID
Lancaster, PA
Phoenix Equity Planning Corporation Permit 1793
P.O. Box 150480 -------------
Hartford, CT 06115-0480
For more information about Phoenix mutual funds, please call your financial
representative, contact us at 1-800-243-1574 or visit PHOENIXFUNDS.COM.
PXP1802 9-07
BPD32731
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.
(c) 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 described in Item 2(b) of the instructions for
completion of Form N-CSR.
(d) The registrant has not granted any waivers, during the period covered
by this report, 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 the instructions for completion of this Item.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) The Registrant's Board of Trustees has determined that the Registrant
has an "audit committee financial expert" serving on its Audit
Committee.
(a)(2) E. Virgil Conway has been determined by the Registrant to 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
is an "independent" trustee pursuant to paragraph (a)(2) of Item 3 to
Form N-CSR.
(a)(3) Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Audit Fees
- ----------
(a) The aggregate fees billed for each of the last two fiscal years for
professional services rendered by the principal accountant for the
audit of the registrant's annual financial statements or services
that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years
are $60,000 for 2007 and $67,500 for 2006.
Audit-Related Fees
- ------------------
(b) The aggregate fees billed in each of the last two fiscal years for
assurance and related services by the principal accountant that are
reasonably related to the performance of the audit of the registrant's
financial statements and are not reported under paragraph (a) of this
Item are $4,000 for 2007 and $0 for 2006. This represents fees for the
review of the registrants semi-annual report.
Tax Fees
- --------
(c) The aggregate fees billed in each of the last two fiscal years for
professional services rendered by the principal accountant for tax
compliance, tax advice, and tax planning are $10,000 for 2007 and
$21,900 for 2006.
"Tax Fees" are those primarily associated with review of the Trust's
tax provision and qualification as a regulated investment company (RIC)
in connection with audits of the Trust's financial statement, review of
year-end distributions by the Fund to avoid excise tax for the Trust,
periodic discussion with management on tax issues affecting the Trust,
and reviewing and signing the Fund's federal income and excise tax
returns.
All Other Fees
- --------------
(d) The aggregate fees billed in each of the last two fiscal years for
products and services provided by the principal accountant, other than
the services reported in paragraphs (a) through (c) of this Item are $0
for 2007 and $0 for 2006.
(e)(1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
Phoenix PHOLIOs(SM) (the "Fund") Board has adopted policies and
procedures with regard to the pre-approval of services provided by PwC.
Audit, audit-related and tax compliance services provided to the Fund
on an annual basis require specific pre-approval by the Board. As noted
above, the Board must also approve other non-audit services provided to
the Fund and those non-audit services provided to the Fund's Affiliated
Service Providers that relate directly to the operations and financial
reporting of the Fund. Certain of these non-audit services that the
Board believes are a) consistent with the SEC's auditor independence
rules and b) routine and recurring services that will not impair the
independence of the independent auditors may be approved by the Board
without consideration on a specific case-by-case basis ("general
pre-approval").
The Audit Committee has determined that Mr. E. Virgil Conway, Chair of
the Audit Committee, may provide pre-approval for such services that
meet the above requirements in the event such approval is sought
between regularly scheduled meetings. In any event, the Board is
informed of each service approved subject to general pre-approval at
the next regularly scheduled in-person board meeting.
(e)(2) The percentage of services described in each of paragraphs (b) through
(d) of this Item that were approved by the audit committee pursuant to
paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:
(b) Not applicable for 2007 and not applicable for 2006
(c) 100% for 2007 and 100% for 2006
(d) Not applicable for 2007 and not applicable for 2006
(f) The percentage of hours expended on the principal accountant's
engagement to audit the registrant's financial statements for the most
recent fiscal year that were attributed to work performed by persons
other than the principal accountant's full-time, permanent employees
was less than fifty percent.
(g) The aggregate non-audit fees billed by the registrant's accountant for
services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by
another investment adviser), and any entity controlling, controlled by,
or under common control with the adviser that provides ongoing services
to the registrant for each of the last two fiscal years of the
registrant was $846,519 for 2007 and $877,027 for 2006.
(h) The registrant's audit committee of the board of directors has
considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser (not including any
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by another investment adviser), and any
entity controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Schedule of Investments in securities of unaffiliated issuers as of the close of
the reporting period is included as part of the report to shareholders filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's board of trustees, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)),
or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's second fiscal
quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) 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 Rule 30a-2(a) under the 1940 Act and Section
302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section
906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) Phoenix Pholios(SM)
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By (Signature and Title)* /s/ George R. Aylward
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George R. Aylward, President
(principal executive officer)
Date September 24, 2007
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ George R. Aylward
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George R. Aylward, President
(principal executive officer)
Date September 24, 2007
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By (Signature and Title)* /s/ W. Patrick Bradley
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W. Patrick Bradley, Chief Financial Officer
and Treasurer (principal financial officer)
Date September 24, 2007
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* Print the name and title of each signing officer under his or her signature.