UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-08343
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Phoenix Investment Trust 97
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(Exact name of registrant as specified in charter)
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: August 31
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Date of reporting period: February 29, 2008
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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 OMITTED]
PHOENIX
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SEMIANNUAL REPORT
Phoenix Quality Small-Cap Fund
Phoenix Small-Cap Sustainable Growth Fund
Phoenix Small-Cap Value Fund
| | WOULDN'T YOU RATHER HAVE THIS
| | DOCUMENT E-MAILED TO YOU?
| | ELIGIBLE SHAREHOLDERS CAN
TRUST NAME: | | SIGN UP FOR E-DELIVERY AT
PHOENIX INVESTMENT TRUST 97 | February 29, 2008 | PHOENIXFUNDS.COM
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NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
TABLE OF CONTENTS
Message to Shareholders.............................................................. 1
Disclosure of Fund Expenses.......................................................... 2
Phoenix Quality Small-Cap Fund....................................................... 3
Phoenix Small-Cap Sustainable Growth Fund............................................ 10
Phoenix Small-Cap Value Fund......................................................... 16
Notes to Financial Statements........................................................ 24
Board of Trustees' Consideration of Investment Advisory and Subadvisory Agreements... 29
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PROXY VOTING INFORMATION (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 Investment Trust 97 unless preceded or accompanied by an effective
prospectus which includes information concerning the sales charge, each Fund's
record and other pertinent information.
MESSAGE TO SHAREHOLDERS
DEAR PHOENIXFUNDS SHAREHOLDER:
We are pleased to provide this report for the six months ended February
29, 2008. 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.
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 independent 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,
/s/ George R. Aylward
George R. Aylward
President, PhoenixFunds
MARCH 2008
1
PHOENIX INVESTMENT TRUST 97
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
(FOR THE SIX-MONTH PERIOD OF SEPTEMBER 1, 2007 TO
FEBRUARY 29, 2008)
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 a
Phoenix Investment Trust 97 Fund, you incur two types of costs: (1) transaction
costs, including sales charges on purchases of Class A shares and contingent
deferred sales charges on Class C shares and (2) ongoing costs, including
investment advisory fees; distribution and service fees; and other expenses.
Class I shares are sold without a sales charge and do not incur distribution and
service fees. These examples are intended to help you understand your ongoing
costs (in dollars) of investing in an Investment Trust 97 fund and to compare
these costs with the ongoing costs of investing in other mutual funds. These
examples are based on an investment of $1,000 invested at the beginning of the
period and held for the entire six-month period. The following Expense Table
illustrates 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 in the first section 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. The calculations assume no shares were bought or
sold during the period. Your actual costs may have been higher or lower,
depending on the amount of your investment and the timing of any purchases or
redemptions.
EXPENSE TABLE
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Beginning Ending Expenses
Account Account Annualized Paid
Value Value Expense During
September 1, 2007 February 29, 2008 Ratio Period*
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QUALITY SMALL-CAP FUND
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ACTUAL
Class I.......... $1,000.00 $ 864.40 1.17% $ 5.42++
Class A.......... 1,000.00 862.60 1.41% 6.53++
Class C.......... 1,000.00 860.10 2.16% 9.99++
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
Class I.......... 1,000.00 1,018.97 1.17% 5.89++
Class A.......... 1,000.00 1,017.76 1.41% 7.10++
Class C.......... 1,000.00 1,013.99 2.16% 10.87++
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SMALL-CAP SUSTAINABLE GROWTH FUND
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ACTUAL
Class I.......... $1,000.00 $ 911.30 1.21% $ 5.75++
Class A.......... 1,000.00 911.00 1.45% 6.89++
Class C.......... 1,000.00 907.30 2.20% 10.43++
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
Class I.......... 1,000.00 1,018.77 1.21% 6.09++
Class A.......... 1,000.00 1,017.56 1.45% 7.30++
Class C.......... 1,000.00 1,013.79 2.20% 11.08++
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SMALL-CAP VALUE FUND
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ACTUAL
Class A.......... $1,000.00 $ 876.10 1.40% $ 6.53
Class B.......... 1,000.00 873.40 2.15% 10.01
Class C.......... 1,000.00 872.60 2.15% 10.01
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
Class A.......... 1,000.00 1,017.82 1.40% 7.05
Class B.......... 1,000.00 1,014.04 2.15% 10.82
Class C.......... 1,000.00 1,014.04 2.15% 10.82
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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
(182) EXPENSES WERE ACCRUED IN THE MOST RECENT FISCAL HALF-YEAR, THEN
DIVIDED BY 366 TO REFLECT THE ONE-HALF YEAR PERIOD.
++ IF EXTRAORDINARY EXPENSES WERE EXCLUDED FROM EXPENSES PAID, THE ACTUAL
EXPENSES FOR THE QUALITY SMALL-CAP FUND WOULD BE $5.33 FOR CLASS I, $6.48
FOR CLASS A AND $9.94 FOR CLASS C. FOR THE HYPOTHETICAL EXAMPLE, EXPENSES
WOULD BE $5.79 FOR CLASS I, $7.05 FOR CLASS A AND $10.82 FOR CLASS C. FOR
THE SMALL-CAP SUSTAINABLE GROWTH FUND, ACTUAL EXPENSES WOULD BE $5.46 FOR
CLASS I, $6.65 FOR CLASS A AND $10.20 FOR CLASS C. FOR THE HYPOTHETICAL
EXAMPLE, EXPENSES WOULD BE $5.79 FOR CLASS I, $7.05 FOR CLASS A AND $10.82
FOR CLASS C.
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.
2
PHOENIX QUALITY SMALL-CAP FUND
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SECTOR WEIGHTINGS*
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Industrials 31%
Financials 21%
Consumer Discretionary 15%
Health Care 8%
Energy 8%
Consumer Staples 7%
Materials 2%
Other (includes short-term investments) 8%
* As a % of total investments.
------------------------------------------------------
SCHEDULE OF INVESTMENTS
FEBRUARY 29, 2008
(UNAUDITED)
VALUE
SHARES (000)
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DOMESTIC COMMON STOCKS--92.9%
APPAREL, ACCESSORIES & LUXURY GOODS--2.0%
Cherokee, Inc. .................................. 35,300 $ 1,195
ASSET MANAGEMENT & CUSTODY BANKS--7.5%
Ares Capital Corp. .............................. 175,300 2,247
MCG Capital Corp. ............................... 195,300 2,344
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4,591
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DATA PROCESSING & OUTSOURCED SERVICES--4.6%
Syntel, Inc. .................................... 102,600 2,794
DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--4.7%
McGrath RentCorp ................................ 137,600 2,881
ENVIRONMENTAL & FACILITIES SERVICES--4.0%
ABM Industries, Inc. ............................ 123,800 2,459
HEALTH CARE DISTRIBUTORS--4.3%
Owens & Minor, Inc. ............................. 60,900 2,617
HEALTH CARE EQUIPMENT--1.2%
Young Innovations, Inc. ......................... 34,200 730
HEALTH CARE SERVICES--3.0%
Landauer, Inc. .................................. 37,800 1,807
HOME FURNISHINGS--4.3%
Tempur-Pedic International, Inc. ................ 149,100 2,597
VALUE
SHARES (000)
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HOUSEHOLD PRODUCTS--3.2%
WD-40 Co. ....................................... 62,800 $ 1,952
INDUSTRIAL MACHINERY--9.6%
CLARCOR, Inc. ................................... 76,000 2,721
Lincoln Electric Holdings, Inc. ................. 46,900 3,149
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5,870
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INSURANCE BROKERS--3.1%
National Financial Partners Corp. ............... 78,400 1,863
INTERNET SOFTWARE & SERVICES--1.8%
Computer Services, Inc. ......................... 34,500 1,111
OFFICE SERVICES & SUPPLIES--2.5%
American Reprographics Co.(b) ................... 95,300 1,542
OIL & GAS REFINING & MARKETING--3.9%
World Fuel Services Corp. ....................... 76,700 2,399
OIL & GAS STORAGE & TRANSPORTATION--4.0%
Crosstex Energy, Inc. ........................... 68,200 2,438
PERSONAL PRODUCTS--3.4%
Chattem, Inc.(b) ................................ 26,700 2,080
REGIONAL BANKS--3.1%
Cathay General Bancorp .......................... 86,400 1,894
SPECIALIZED CONSUMER SERVICES--8.3%
Jackson Hewitt Tax Service, Inc. ................ 109,900 2,300
Matthews International Corp. Class A. ........... 61,100 2,741
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5,041
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3
Phoenix Quality Small-Cap Fund
VALUE
SHARES (000)
------ -------
SPECIALIZED FINANCE--1.9%
Financial Federal Corp. ......................... 53,700 $ 1,157
SPECIALIZED REITS--3.6%
Entertainment Properties Trust .................. 46,100 2,161
SPECIALTY CHEMICALS--1.9%
Balchem Corp. ................................... 57,400 1,150
THRIFTS & MORTGAGE FINANCE--2.2%
Corus Bankshares, Inc. .......................... 128,300 1,325
TRUCKING--4.8%
Landstar System, Inc. ........................... 62,500 2,899
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TOTAL DOMESTIC COMMON STOCKS
(IDENTIFIED COST $63,030) 56,553
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EXCHANGE TRADED FUNDS--0.6%
iShares Russell 2000 Value Index Fund. .......... 5,650 371
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TOTAL EXCHANGE TRADED FUNDS
(IDENTIFIED COST $466) 371
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TOTAL LONG TERM INVESTMENTS--93.5%
(IDENTIFIED COST $63,496) 56,924
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PAR VALUE
(000)
---------
SHORT-TERM INVESTMENTS--5.6%
REPURCHASE AGREEMENTS--5.6%
State Street Bank and Trust Co.
repurchase agreement 1.00% dated 2/29/08,
due 3/3/08 repurchase price $3,421,285
collateralized by U.S. Treasury Note 2.95%,
7/17/08 market value $3,490,708. ................ $3,421 3,421
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TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $3,421) 3,421
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS--99.1%
(IDENTIFIED COST $66,917) 60,345(a)
Other assets and liabilities, net--0.9% 559
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NET ASSETS--100.0% $60,904
=======
ABBREVIATIONS:
REIT - Real Estate Investment Trust
FOOTNOTE LEGEND:
(a) Federal Income Tax Information (reported in 000s): Net unrealized
depreciation of investment securities is comprised of gross appreciation of
$1,237 and gross depreciation of $7,808 for federal income tax purposes. At
February 29, 2008, the aggregate cost of securities for federal income tax
purposes was $66,916.
(b) Non-income producing.
4 See Notes to Financial Statements
Phoenix Quality Small-Cap Fund
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 29, 2008
(UNAUDITED)
(Reported in thousands except per share amounts)
ASSETS
Investment securities at value (Identified cost $66,917) $60,345
Cash --(*)
Receivables
Fund shares sold 947
Dividends 40
Interest --(*)
Prepaid expenses 34
Other assets --(*)
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Total assets 61,366
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LIABILITIES
Payables
Fund shares repurchased 205
Investment securities purchased 178
Investment advisory fee 33
Administration fee 2
Transfer agent fee 3
Trustees' fee --(*)
Distribution and service fees 4
Professional fee 21
Trustee deferred compensation plan --(*)
Other accrued expenses 16
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Total liabilities 462
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NET ASSETS $60,904
=======
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $67,474
Undistributed net investment income 2
Accumulated net realized loss --(*)
Net unrealized depreciation (6,572)
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NET ASSETS $60,904
=======
CLASS I
Net asset value and offering price per share $10.04
Shares of beneficial interest outstanding, no par value,
unlimited authorization 4,621
Net Assets $46,379
CLASS A
Net asset value per share $10.03
Offering price per share $10.03/(1-5.75%) $10.64
Shares of beneficial interest outstanding, no par value,
unlimited authorization 1,236
Net Assets $12,396
CLASS C
Net asset value and offering price per share $10.02
Shares of beneficial interest outstanding, no par value,
unlimited authorization 213
Net Assets $ 2,129
(*) Amount is less than $500.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY 29, 2008
(UNAUDITED)
(Reported in thousands)
INVESTMENT INCOME
Dividends $ 404
Interest 18
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Total investment income 422
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EXPENSES
Investment advisory fee 166
Service fees, Class A 13
Distribution and service fees, Class C 9
Administration fee 14
Transfer agent 17
Professional 17
Printing 15
Registration 13
Custodian 5
Trustees 1
Miscellaneous 2
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Total expenses 272
Less expenses reimbursed by investment adviser (33)
Custodian fees paid indirectly (1)
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Net expenses 238
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NET INVESTMENT INCOME (LOSS) 184
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NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net change in unrealized appreciation (depreciation) on investments (6,742)
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NET GAIN (LOSS) ON INVESTMENTS (6,742)
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NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $(6,558)
=======
See Notes to Financial Statements 5
Phoenix Quality Small-Cap Fund
STATEMENT OF CHANGES IN NET ASSETS
(Reported in thousands)
Six Months
Ended
February 29, 2008 Year Ended
(Unaudited) August 31, 2007
----------------- ---------------
FROM OPERATIONS
Net investment income (loss) $ 184 $ 142
Net realized gain (loss) -- 102
Net change in unrealized appreciation (depreciation) (6,742) 160
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INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (6,558) 404
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FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class I (236) (14)
Net investment income, Class A (77) (1)
Net investment income, Class C -- --(1)
Net realized short-term gains, Class I (54) (5)
Net realized short-term gains, Class A (24) (1)
Net realized short-term gains, Class C (5) --(1)
Net realized long-term gains, Class I (8) --
Net realized long-term gains, Class A (3) --
Net realized long-term gains, Class C (1) --
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DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (408) (21)
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FROM SHARE TRANSACTIONS
CLASS I
Proceeds from sales of shares (3,987 and 855 shares, respectively) 43,470 9,903
Net asset value of shares issued from reinvestment of distributions
(21 and 1 shares, respectively) 232 16
Cost of shares repurchased (296 and 54 shares, respectively) (3,163) (620)
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Total 40,539 9,299
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CLASS A
Proceeds from sales of shares (627 and 730 shares, respectively) 6,961 8,553
Net asset value of shares issued from reinvestment of distributions
(9 and --(2) shares, respective 102 1
Cost of shares repurchased (125 and 16 shares, respectively) (1,396) (185)
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Total 5,667 8,369
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CLASS C
Proceeds from sales of shares (119 and 105 shares, respectively) 1,381 1,223
Net asset value of shares issued from reinvestment of distributions
(1 and --(2) shares, respectively) 5 --(1)
Cost of shares repurchased (23 and 3 shares, respectively) (273) (32)
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Total 1,113 1,191
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INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 47,319 18,859
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NET INCREASE (DECREASE) IN NET ASSETS 40,353 19,242
NET ASSETS
Beginning of period 20,551 1,309
------- -------
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $2 AND $131, RESPECTIVELY) $60,904 $20,551
======= =======
(1) Amount is less than $500.
(2) Shares fewer than 500.
6 See Notes to Financial Statements
(This page has been left blank intentionally.)
PHOENIX INVESTMENT TRUST 97
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
NET
ASSET NET NET TOTAL DIVIDENDS DISTRIBUTIONS
VALUE, INVESTMENT REALIZED AND FROM FROM NET FROM NET
BEGINNING INCOME UNREALIZED INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD (LOSS)(1) GAIN (LOSS) OPERATIONS INCOME GAINS DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
- ----------------------
QUALITY SMALL-CAP FUND
- ----------------------
CLASS I
9/1/07 to 2/29/08 $11.76 $0.06 $(1.64) $(1.58) $(0.11) $(0.03) $(0.14)
9/1/06 to 8/31/07 10.06 0.21 1.57 1.78 (0.06) (0.02) (0.08)
6/28/06 (Inception) to 8/31/06 10.00 0.07 (0.01) 0.06 -- -- --
CLASS A
9/1/07 to 2/29/08 $11.74 $0.06 $(1.66) $(1.60) $(0.08) $(0.03) $(0.11)
9/1/06 to 8/31/07 10.05 0.25 1.51 1.76 (0.05) (0.02) (0.07)
6/28/06 (Inception) to 8/31/06 10.00 0.03 0.02 0.05 -- -- --
CLASS C
9/1/07 to 2/29/08 $11.68 $0.02 $(1.65) $(1.63) $ -- $(0.03) $(0.03)
9/1/06 to 8/31/07 10.04 0.10 1.57 1.67 (0.01) (0.02) (0.03)
6/28/06 (Inception) to 8/31/06 10.00 0.02 0.02 0.04 -- -- --
(1) Computed using average shares outstanding.
(2) Sales charges, where applicable, are not reflected in total return
calculation.
(3) Annualized.
(4) Not annualized.
(5) The ratio of net operating expenses includes extraordinary expenses. If
these expenses were excluded, the ratio would have been 1.15% for Class I,
1.40% for Class A and 2.15% for Class C.
8 See Notes to Financial Statements
RATIO OF
NET NET RATIO OF NET GROSS RATIO OF NET
ASSET ASSETS, OPERATING OPERATING INVESTMENT
CHANGE IN VALUE, END OF EXPENSES TO EXPENSES TO INCOME TO
NET ASSET END OF TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET PORTFOLIO
VALUE PERIOD RETURN(2) (000'S) ASSETS ASSETS ASSETS TURNOVER
- ------------------------------------------------------------------------------------------------------------------------------------
- ----------------------
QUALITY SMALL-CAP FUND
- ----------------------
CLASS I
9/1/07 to 2/29/08 $(1.72) $10.04 (13.56)%(4) $46,379 1.17%(3),(5) 1.36%(3) 1.04%(3) 0%(4)
9/1/06 to 8/31/07 1.70 11.76 17.74 10,691 1.15 2.54 1.82 17
6/28/06 (Inception) to 8/31/06 0.06 10.06 0.60(4) 1,070 1.15(3) 21.32(3) 3.85(3) 7(4)
CLASS A
9/1/07 to 2/29/08 $(1.71) $10.03 (13.74)%(4) $12,396 1.41%(3),(5) 1.59%(3) 1.02%(3) 0%(4)
9/1/06 to 8/31/07 1.69 11.74 17.51 8,506 1.40 2.19 2.14 17
6/28/06 (Inception) to 8/31/06 0.05 10.05 0.50(4) 101 1.40(3) 26.39(3) 1.82(3) 7(4)
CLASS C
9/1/07 to 2/29/08 $(1.66) $10.02 (13.99)%(4) $ 2,129 2.16%(3),(5) 2.33%(3) 0.29%(3) 0%(4)
9/1/06 to 8/31/07 1.64 11.68 16.61 1,354 2.16 3.45 0.89 17
6/28/06 (Inception) to 8/31/06 0.04 10.04 0.40(4) 138 2.15(3) 25.96(3) 1.38(3) 7(4)
See Notes to Financial Statements 9
PHOENIX SMALL-CAP SUSTAINABLE GROWTH FUND
------------------------------------------------------
SECTOR WEIGHTINGS*
------------------
Information Technology 37%
Consumer Discretionary 24%
Health Care 16%
Energy 10%
Financials 6%
Industrials 5%
Other (includes short-term investments) 2%
* As a % of total investments.
------------------------------------------------------
SCHEDULE OF INVESTMENTS
FEBRUARY 29, 2008
(UNAUDITED)
VALUE
SHARES (000)
------ -------
DOMESTIC COMMON STOCKS--98.1%
AEROSPACE & DEFENSE--2.2%
HEICO Corp. Class A .............................. 9,150 $ 333
APPLICATION SOFTWARE--4.5%
FactSet Research Systems, Inc. ................... 12,700 668
CASINOS & GAMING--1.7%
Shuffle Master, Inc.(b) .......................... 31,400 259
CONSUMER FINANCE--5.7%
World Acceptance Corp.(b) ........................ 27,900 848
EDUCATION SERVICES--10.9%
Bright Horizons Family Solutions, Inc.(b) ........ 21,100 949
Strayer Education, Inc. .......................... 4,400 685
-------
1,634
-------
ELECTRONIC EQUIPMENT MANUFACTURERS--7.8%
Daktronics, Inc. ................................. 29,700 513
Measurement Specialties, Inc.(b) ................. 37,200 660
-------
1,173
-------
FOOTWEAR--4.0%
Iconix Brand Group, Inc.(b) ...................... 29,000 603
HEALTH CARE EQUIPMENT--8.4%
ABAXIS, Inc.(b) .................................. 34,300 999
Thermage, Inc.(b) ................................ 63,000 266
-------
1,265
-------
HOMEFURNISHING RETAIL--4.6%
Aaron Rents, Inc. ................................ 35,150 690
VALUE
SHARES (000)
------ -------
IT CONSULTING & OTHER SERVICES--4.8%
SI International, Inc.(b) ........................ 28,750 $ 715
LIFE SCIENCES TOOLS & SERVICES--3.3%
Techne Corp.(b) .................................. 7,200 492
OIL & GAS EQUIPMENT & SERVICES--9.9%
CARBO Ceramics, Inc. ............................. 19,800 732
Tesco Corp.(b) ................................... 30,500 751
-------
1,483
-------
PHARMACEUTICALS--4.8%
KV Pharmaceutical Co. Class A(b) ................. 28,600 718
RESTAURANTS--3.0%
Cheesecake Factory, Inc. (The)(b) ................ 21,700 454
SEMICONDUCTOR EQUIPMENT--4.7%
Cabot Microelectronics Corp.(b) .................. 21,000 703
SEMICONDUCTORS--5.0%
Power Integrations, Inc.(b) ...................... 28,700 755
SYSTEMS SOFTWARE--4.4%
Quality Systems, Inc. ............................ 20,000 651
TECHNOLOGY DISTRIBUTORS--5.4%
ScanSource, Inc.(b) .............................. 23,750 807
TRADING COMPANIES & DISTRIBUTORS--3.0%
NuCo2, Inc.(b) ................................... 16,000 442
- ----------------------------------------------------------------------------
TOTAL DOMESTIC COMMON STOCKS
(IDENTIFIED COST $15,493) 14,693
- ----------------------------------------------------------------------------
TOTAL LONG TERM INVESTMENTS--98.1%
(IDENTIFIED COST $15,493) 14,693
- ----------------------------------------------------------------------------
10 See Notes to Financial Statements
Phoenix Small-Cap Sustainable Growth Fund
PAR VALUE VALUE
(000) (000)
--------- -------
SHORT-TERM INVESTMENTS--1.8%
REPURCHASE AGREEMENTS--1.8%
State Street Bank and Trust Co.
repurchase agreement 1.0%
dated 2/29/08, due 3/3/08 repurchase
price $269,015 collateralized by
U.S. Treasury Note 4.25%, 8/15/15
market value $278,503 ............................ $ 269 $ 269
- ----------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $269) 269
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS--99.9%
(IDENTIFIED COST $15,762) 14,962(a)
Other assets and liabilities, net--0.1% 17
-------
NET ASSETS--100.0% $14,979
=======
FOOTNOTE LEGEND:
(a) Federal Income Tax Information (reported in 000s): Net unrealized
depreciation of investment securities is comprised of gross appreciation of
$1,022 and gross depreciation of $1,823 for federal income tax purposes. At
February 29, 2008, the aggregate cost of securities for federal income tax
purposes was $15,763.
(b) Non-income producing.
See Notes to Financial Statements 11
Phoenix Small-Cap Sustainable Growth Fund
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 29, 2008
(UNAUDITED)
(Reported in thousands except per share amounts)
ASSETS
Investment securities at value (Identified cost $15,762) $14,962
Cash --(*)
Receivables
Fund shares sold 54
Dividends 3
Interest --(*)
Prepaid expenses 14
Other assets --(*)
-------
Total assets 15,033
-------
LIABILITIES
Payables
Fund shares repurchased 14
Professional fee 19
Investment advisory fee 13
Distribution and service fees 2
Administration fee 1
Transfer agent fee 1
Trustees' fee --(*)
Trustee deferred compensation plan --(*)
Other accrued expenses 4
-------
Total liabilities 54
-------
NET ASSETS $14,979
=======
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $16,168
Accumulated net investment loss (77)
Accumulated net realized loss (312)
Net unrealized depreciation (800)
-------
NET ASSETS $14,979
=======
CLASS I
Net asset value and offering price per share $9.45
Shares of beneficial interest outstanding, no par value,
unlimited authorization 627
Net Assets $ 5,928
CLASS A
Net asset value per share $9.42
Offering price per share $9.42/(1-5.75%) $9.99
Shares of beneficial interest outstanding, no par value,
unlimited authorization 941
Net Assets $ 8,862
CLASS C
Net asset value and offering price per share $9.30
Shares of beneficial interest outstanding, no par value,
unlimited authorization 20
Net Assets $ 189
(*) AMOUNT IS LESS THAN $500.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY 29, 2008
(UNAUDITED)
(Reported in thousands)
INVESTMENT INCOME
Dividends $ 30
Interest 3
-------
Total investment income 33
-------
EXPENSES
Investment advisory fee 72
Service fees, Class A 12
Distribution and service fees, Class C 1
Administration fee 7
Transfer agent 5
Professional 15
Registration 13
Printing 4
Custodian 2
Trustees 1
Miscellaneous 1
-------
Total expenses 133
Less expenses reimbursed by investment adviser (23)
Custodian fees paid indirectly --(*)
-------
Net expenses 110
-------
NET INVESTMENT INCOME (LOSS) (77)
-------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments (226)
Net change in unrealized appreciation (depreciation)
on investments (1,136)
-------
NET GAIN (LOSS) ON INVESTMENTS (1,362)
-------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $(1,439)
=======
12 See Notes to Financial Statements
Phoenix Small-Cap Sustainable Growth Fund
STATEMENT OF CHANGES IN NET ASSETS
(Reported in thousands)
Six Months
Ended
February 29, 2008 Year Ended
(Unaudited) August 31, 2007
----------------- ---------------
FROM OPERATIONS
Net investment income (loss) $ (77) $ (62)
Net realized gain (loss) (226) (84)
Net change in unrealized appreciation (depreciation) (1,136) 326
------- -------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (1,439) 180
------- -------
FROM SHARE TRANSACTIONS
CLASS I
Proceeds from sales of shares (97 and 544 shares, respectively) 975 5,578
Cost of shares repurchased (71 and 35 shares, respectively) (719) (362)
------- -------
Total 256 5,216
------- -------
CLASS A
Proceeds from sales of shares (127 and 1,023 shares, respectively) 1,264 10,527
Cost of shares repurchased (175 and 45 shares, respectively) (1,764) (463)
------- -------
Total (500) 10,064
------- -------
CLASS C
Proceeds from sales of shares (5 and 7 shares, respectively) 52 71
Cost of shares repurchased (2 and --(2) shares, respectively) (17) --(1)
------- -------
Total 35 71
------- -------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (209) 15,351
------- -------
NET INCREASE (DECREASE) IN NET ASSETS (1,648) 15,531
NET ASSETS
Beginning of period 16,627 1,096
------- -------
END OF PERIOD (INCLUDING ACCUMULATED NET INVESTMENT LOSS AND UNDISTRIBUTED
NET INVESTMENT INCOME OF $(77) AND $0, RESPECTIVELY) $14,979 $16,627
======= =======
(1) Amount is less than $500.
(2) Shares fewer than 500.
See Notes to Financial Statements 13
PHOENIX INVESTMENT TRUST 97
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
NET
ASSET NET NET TOTAL DIVIDENDS DISTRIBUTIONS
VALUE, INVESTMENT REALIZED AND FROM FROM NET FROM NET
BEGINNING INCOME UNREALIZED INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD (LOSS)(1) GAIN (LOSS) OPERATIONS INCOME GAINS DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------
SMALL-CAP SUSTAINABLE GROWTH FUND
- ---------------------------------
CLASS I
9/1/07 to 2/29/08 $10.37 $(0.04) $(0.88) $(0.92) $ -- $ -- $ --
9/1/06 to 8/31/07 9.79 (0.08) 0.66 0.58 -- -- --
6/28/06 (Inception) to 8/31/06 10.00 (0.01) (0.20) (0.21) -- -- --
CLASS A
9/1/07 to 2/29/08 $10.34 $(0.05) $(0.87) $(0.92) $ -- $ -- $ --
9/1/06 to 8/31/07 9.79 (0.10) 0.65 0.55 -- -- --
6/28/06 (Inception) to 8/31/06 10.00 (0.01) (0.20) (0.21) -- -- --
CLASS C
9/1/07 to 2/29/08 $10.25 $(0.09) $(0.86) $(0.95) $ -- $ -- $ --
9/1/06 to 8/31/07 9.77 (0.18) 0.66 0.48 -- -- --
6/28/06 (Inception) to 8/31/06 10.00 (0.03) (0.20) (0.23) -- -- --
(1) Computed using average shares outstanding.
(2) Sales charges, where applicable, are not reflected in total return
calculation.
(3) Annualized.
(4) Not annualized.
(5) The ratio of net operating expenses includes extraordinary expenses. If
these expenses were excluded, the ratio would have been 1.15% for Class I,
1.40% for Class A and 2.15% for Class C.
14 See Notes to Financial Statements
RATIO OF
NET NET RATIO OF NET GROSS RATIO OF NET
ASSET ASSETS, OPERATING OPERATING INVESTMENT
CHANGE IN VALUE, END OF EXPENSES TO EXPENSES TO INCOME TO
NET ASSET END OF TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET PORTFOLIO
VALUE PERIOD RETURN(2) (000'S) ASSETS ASSETS ASSETS TURNOVER
- ------------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------
SMALL-CAP SUSTAINABLE GROWTH FUND
- ---------------------------------
CLASS I
9/1/07 to 2/29/08 $(0.92) $ 9.45 (8.87)%(4) $ 5,928 1.21%(3)(5) 1.50%(3) (0.79)%(3) 12%(4)
9/1/06 to 8/31/07 0.58 10.37 5.92 6,231 1.16 2.94 (0.77) 26
6/28/06 (Inception) to 8/31/06 (0.21) 9.79 (2.10)(4) 898 1.15(3) 23.99(3) (0.61)(3) 4(4)
CLASS A
9/1/07 to 2/29/08 $(0.92) $ 9.42 (8.90)%(4) $ 8,862 1.45%(3)(5) 1.75%(3) (1.04)%(3) 12%(4)
9/1/06 to 8/31/07 0.55 10.34 5.62 10,222 1.40 2.16 (0.96) 26
6/28/06 (Inception) to 8/31/06 (0.21) 9.79 (2.10)(4) 100 1.40(3) 28.32(3) (0.87)(3) 4(4)
CLASS C
9/1/07 to 2/29/08 $(0.95) $ 9.30 (9.27)%(4) $ 189 2.20%(3)(5) 2.50%(3) (1.78)%(3) 12%(4)
9/1/06 to 8/31/07 0.48 10.25 4.81 174 2.15 4.31 (1.78) 26
6/28/06 (Inception) to 8/31/06 (0.23) 9.77 (2.20)(4) 98 2.15(3) 29.09(3) (1.61)(3) 4(4)
See Notes to Financial Statements 15
PHOENIX SMALL-CAP VALUE FUND
------------------------------------------------------
SECTOR WEIGHTINGS*
------------------
Financials 21%
Energy 12%
Information Technology 10%
Industrials 9%
Consumer Discretionary 8%
Health Care 7%
Materials 6%
Other (includes short-term investments) 27%
* As a % of total investments.
------------------------------------------------------
SCHEDULE OF INVESTMENTS
FEBRUARY 29, 2008
(UNAUDITED)
VALUE
SHARES (000)
---------- --------
DOMESTIC COMMON STOCKS--94.0%
AEROSPACE & DEFENSE--4.3%
Ceradyne, Inc.(b)(d) ............................. 10,000 $ 311
Cubic Corp.(d) ................................... 56,000 1,432
Ducommun, Inc.(b) ................................ 15,000 416
DynCorp International, Inc. Class A(b)(d) ........ 66,000 1,097
Esterline Technologies Corp.(b)(d) ............... 26,000 1,362
Teledyne Technologies, Inc.(b)(d) ................ 15,000 666
--------
5,284
--------
APPAREL RETAIL--2.1%
Collective Brands, Inc.(b) ....................... 73,000 1,151
Men's Wearhouse, Inc. (The)(d) ................... 61,000 1,406
--------
2,557
--------
APPAREL, ACCESSORIES & LUXURY GOODS--1.7%
Jones Apparel Group, Inc.(d) ..................... 143,000 2,018
AUTO PARTS & EQUIPMENT--0.5%
Aftermarket Technology Corp.(b)(d) ............... 31,000 581
BIOTECHNOLOGY--1.2%
Martek Biosciences Corp.(b)(d) ................... 53,000 1,519
COAL & CONSUMABLE FUELS--1.3%
Massey Energy Co.(d) ............................. 41,000 1,569
COMMERCIAL PRINTING--1.0%
Consolidated Graphics, Inc.(b)(d) ................ 22,500 1,197
VALUE
SHARES (000)
---------- --------
COMMODITY CHEMICALS--1.9%
Koppers Holdings, Inc.(d) ........................ 56,000 $ 2,339
COMMUNICATIONS EQUIPMENT--3.6%
ADC Telecommunications, Inc.(b)(d) ............... 100,000 1,367
Comtech Telecommunications Corp.(b)(d) ........... 33,000 1,431
Harris Corp. ..................................... 32,000 1,563
--------
4,361
--------
CONSTRUCTION & ENGINEERING--1.3%
EMCOR Group, Inc.(b) ............................. 68,000 1,638
DIVERSIFIED CHEMICALS--1.1%
Olin Corp.(d) .................................... 72,000 1,384
DIVERSIFIED REITS--1.3%
Colonial Properties Trust(d) ..................... 64,000 1,559
ELECTRONIC EQUIPMENT MANUFACTURERS--1.4%
Measurement Specialties, Inc.(b)(d) .............. 6,000 106
Technitrol, Inc.(d) .............................. 72,000 1,585
--------
1,691
--------
ELECTRONIC MANUFACTURING SERVICES--2.6%
Plexus Corp.(b)(d) ............................... 67,000 1,659
TTM Technologies, Inc.(b)(d) ..................... 140,000 1,543
--------
3,202
--------
FERTILIZERS & AGRICULTURAL CHEMICALS--1.5%
CF Industries Holdings, Inc.(d) .................. 15,000 1,831
16 See Notes to Financial Statements
Phoenix Small-Cap Value Fund
VALUE
SHARES (000)
---------- --------
FOOD RETAIL--1.4%
Casey's General Stores, Inc.(d) .................. 69,000 $ 1,728
GAS UTILITIES--1.5%
WGL Holdings, Inc.(d) ............................ 60,000 1,871
HEALTH CARE FACILITIES--2.6%
AmSurg Corp.(b)(d) ............................... 59,000 1,421
Emeritus Corp.(b)(d) ............................. 79,000 1,749
--------
3,170
--------
HEALTH CARE SERVICES--2.0%
Amedisys, Inc.(b)(d) ............................. 16,600 710
Apria Healthcare Group, Inc.(b)(d) ............... 19,500 423
Res-Care, Inc.(b)(d) ............................. 60,000 1,293
--------
2,426
--------
HOMEFURNISHING RETAIL--1.1%
Rent-A-Center, Inc.(b)(d) ........................ 81,000 1,389
HOTELS, RESORTS & CRUISE LINES--0.3%
Interstate Hotels & Resorts, Inc.(b).. ........... 81,000 403
HOUSEWARES & SPECIALTIES--1.3%
Tupperware Brands Corp.(d) ....................... 44,000 1,605
INDUSTRIAL MACHINERY--4.7%
Actuant Corp. Class A(d) ......................... 55,000 1,478
Columbus McKinnon Corp.(b)(d) .................... 53,000 1,518
EnPro Industries, Inc.(b)(d) ..................... 48,000 1,418
Kadant, Inc.(b)(d) ............................... 46,000 1,155
Lydall, Inc.(b) .................................. 11,000 112
--------
5,681
--------
INTERNET RETAIL--1.5%
FTD Group, Inc.(d) ............................... 133,000 1,834
INTERNET SOFTWARE & SERVICES--0.8%
United Online, Inc.(d) ........................... 95,000 948
IT CONSULTING & OTHER SERVICES--0.9%
CIBER, Inc.(b)(d) ................................ 39,000 179
SYKES Enterprises, Inc.(b)(d) .................... 53,000 890
--------
1,069
--------
MANAGED HEALTH CARE--1.2%
AMERIGROUP Corp.(b)(d) ........................... 41,000 1,476
OFFICE REITS--1.0%
Lexington Realty Trust(d) ........................ 84,000 1,216
VALUE
SHARES (000)
---------- --------
OIL & GAS DRILLING--2.4%
Parker Drilling Co.(b)(d) ........................ 265,000 $ 1,757
Union Drilling, Inc.(b)(d) ....................... 59,000 1,181
--------
2,938
--------
OIL & GAS EQUIPMENT & SERVICES--3.4%
Basic Energy Service, Inc.(b)(d) ................. 33,000 698
Hornbeck Offshore Services, Inc.(b)(d) ........... 39,000 1,752
Oil States International, Inc.(b)(d).. ........... 29,000 1,223
T-3 Energy Services, Inc.(b) ..................... 10,000 494
--------
4,167
--------
OIL & GAS EXPLORATION & PRODUCTION--8.0%
Bois d'Arc Energy, Inc.(b)(d) .................... 106,000 2,276
Chesapeake Energy Corp.(d) ....................... 35,000 1,582
Encore Acquisition Co.(b)(d) ..................... 20,000 736
Mariner Energy, Inc.(b)(d) ....................... 49,000 1,359
Stone Energy Corp.(b)(d) ......................... 46,000 2,335
Swift Energy Co.(b)(d) ........................... 30,000 1,432
--------
9,720
--------
PACKAGED FOODS & MEATS--1.1%
Flowers Foods, Inc.(d) ........................... 61,000 1,382
PAPER PRODUCTS--1.0%
Buckeye Technologies, Inc.(b)(d) ................. 115,000 1,243
PHARMACEUTICALS--1.4%
Sciele Pharma, Inc.(b)(d) ........................ 81,000 1,677
PROPERTY & CASUALTY INSURANCE--3.7%
Harleysville Group, Inc.(d) ...................... 26,500 890
Meadowbrook Insurance Group, Inc.(b)(d) .......... 118,000 939
Navigators Group, Inc. (The)(b) .................. 35,000 1,916
ProCentury Corp.(d) .............................. 11,000 202
SeaBright Insurance Holdings, Inc.(b)(d) ......... 36,000 536
--------
4,483
--------
PUBLISHING--1.7%
Scholastic Corp.(b)(d) ........................... 59,000 2,057
REGIONAL BANKS--12.0%
Capital Corp of the West(d) ...................... 16,000 220
Cathay General Bancorp(d) ........................ 62,000 1,359
City Bank(d) ..................................... 35,000 645
City Holding Co.(d) .............................. 6,000 223
Columbia Bancorp ................................. 11,000 157
Community Bank System, Inc.(d) ................... 65,000 1,436
Community Trust Bancorp, Inc. .................... 4,000 108
East West Bancorp, Inc.(d) ....................... 49,000 922
See Notes to Financial Statements 17
Phoenix Small-Cap Value Fund
VALUE
SHARES (000)
---------- --------
REGIONAL BANKS--(CONTINUED)
First Merchants Corp.(d) ......................... 53,000 $ 1,432
First Regional Bancorp(b)(d) ..................... 15,000 240
First State Bancorp.(d) .......................... 11,000 131
Great Southern Bancorp, Inc. ..................... 1,600 29
Green Bankshares, Inc. ........................... 7,000 128
Hanmi Financial Corp.(d) ......................... 58,000 443
Lakeland Financial Corp. ......................... 2,000 41
Midwest Banc Holdings, Inc. ...................... 6,000 62
National Penn Bancshares, Inc.(d) ................ 4,944 79
Old Second Bancorp, Inc.(d) ...................... 23,000 592
Pacific Capital Bancorp(d) ....................... 97,000 2,032
Renasant Corp. ................................... 3,000 63
Sandy Spring Bancorp, Inc.(d) .................... 15,000 408
Southwest Bancorp, Inc.(d) ....................... 11,400 185
Sterling Bancorp(d) .............................. 46,000 648
SVB Financial Group(b)(d) ........................ 45,000 2,038
Texas Capital Bancshares, Inc.(b)(d).. ........... 57,000 853
Virginia Commerce Bancorp(b) ..................... 4,000 40
WesBanco, Inc. ................................... 7,000 163
--------
14,677
--------
RETAIL REITS--0.9%
CBL & Associates Properties, Inc.(d).. ........... 47,000 1,097
SEMICONDUCTOR EQUIPMENT--0.7%
MKS Instruments, Inc.(b)(d) ...................... 43,000 864
SEMICONDUCTORS--1.2%
Skyworks Solutions, Inc.(b)(d) ................... 184,000 1,520
SPECIALIZED FINANCE--1.9%
Asta Funding, Inc.(d) ............................ 20,000 324
Interactive Brokers Group, Inc.(b)(d). ........... 64,000 1,988
--------
2,312
--------
SPECIALIZED REITS--1.2%
Strategic Hotels & Resorts, Inc.(d) .............. 102,000 1,453
SPECIALTY STORES--0.2%
Books-A-Million, Inc.(d) ......................... 33,000 274
STEEL--1.5%
NN, Inc. ......................................... 33,000 322
Quanex Corp.(d) .................................. 29,000 1,492
--------
1,814
--------
SYSTEMS SOFTWARE--1.4%
Sybase, Inc.(b)(d) ............................... 62,400 1,661
VALUE
SHARES (000)
---------- --------
TECHNOLOGY DISTRIBUTORS--0.1%
Insight Enterprises, Inc.(b) ..................... 8,000 $ 140
THRIFTS & MORTGAGE FINANCE--1.4%
Berkshire Hills Bancorp, Inc. .................... 2,000 45
FirstFed Financial Corp.(b) ...................... 38,000 1,188
Provident New York Bancorp ....................... 9,000 118
WSFS Financial Corp.(d) .......................... 7,000 331
--------
1,682
--------
WIRELESS TELECOMMUNICATION SERVICES--1.7%
Syniverse Holdings, Inc.(b)(d) ................... 96,000 1,627
USA Mobility, Inc.(b)(d) ......................... 40,000 420
--------
2,047
- ----------------------------------------------------------------------------
TOTAL DOMESTIC COMMON STOCKS
(IDENTIFIED COST $112,334) 114,754
- ----------------------------------------------------------------------------
FOREIGN COMMON STOCKS(C)--3.3%
DIVERSIFIED BANKS--1.1%
Banco Latinoamericano de Exportaciones, S.A.
(Panama)(d) ...................................... 97,000 1,304
PROPERTY & CASUALTY INSURANCE--0.6%
United America Indemnity Ltd. Class A
(United States)(b) ............................... 40,000 750
REINSURANCE--1.6%
Arch Capital Group Ltd. (United States)(b) ....... 29,000 1,986
- ----------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $3,704) 4,040
- ----------------------------------------------------------------------------
EXCHANGE TRADED FUNDS--1.5%
iShares Dow Jones US Regional Banks
Index Fund ....................................... 52,000 $ 1,876
- ----------------------------------------------------------------------------
TOTAL EXCHANGE TRADED FUNDS
(IDENTIFIED COST $2,170) 1,876
- ----------------------------------------------------------------------------
TOTAL LONG TERM INVESTMENTS--98.8%
(IDENTIFIED COST $118,208) 120,670
- ----------------------------------------------------------------------------
SHORT-TERM INVESTMENTS--27.0%
MONEY MARKET MUTUAL FUNDS--25.3%
State Street Navigator Prime Plus
(4.201% seven-day effective yield)(e) ............ 30,915,761 30,916
18 See Notes to Financial Statements
Phoenix Small-Cap Value Fund
PAR VALUE VALUE
(000) (000)
--------- --------
COMMERCIAL PAPER(f)--1.7%
Eaton Corp.
3.150% due 3/3/08 ................................ $ 2,120 $ 2,120
- ----------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $33,036) 33,036
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS--125.8%
(IDENTIFIED COST $151,244) 153,706(a)
Other assets and liabilities, net--(25.8)% (31,562)
--------
NET ASSETS--100.0% $122,144
========
ABBREVIATIONS:
REIT - Real Estate Investment Trust
FOOTNOTE LEGEND:
(a) Federal Income Tax Information (reported in 000s): Net unrealized
appreciation of investment securities is comprised of gross appreciation of
$11,124 and gross depreciation of $9,813 for federal income tax purposes. At
February 29, 2008, the aggregate cost of securities for federal income tax
purposes was $152,395.
(b) Non-income producing.
(c) A security is considered to be foreign if the security is issued in a
foreign country. The country of risk, noted parenthetically, is determined
based on criteria described in Note 2G "Foreign security country
determination" in the Notes to Financial Statements.
(d) All or a portion of security is on loan.
(e) Represents security purchased with cash collateral received for securities
on loan.
(f) The rate shown is the discount rate.
See Notes to Financial Statements 19
Phoenix Small-Cap Value Fund
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 29, 2008
(UNAUDITED)
(Reported in thousands except per share amounts)
ASSETS
Investment securities at value, including $29,131 of
securities on loan (Identified cost $151,244) $153,706
Cash 2
Receivables
Investment securities sold 4,343
Fund shares sold 8
Dividends 98
Prepaid expenses 37
Other assets 15
--------
Total assets 158,209
--------
LIABILITIES
Payables
Fund shares repurchased 495
Investment securities purchased 4,416
Upon return of securities loaned 30,916
Investment advisory fee 59
Administration fee 10
Transfer agent fee 42
Trustees' fee 1
Distribution and service fees 54
Professional fee 22
Trustee deferred compensation plan 15
Other accrued expenses 35
--------
Total liabilities 36,065
--------
NET ASSETS $122,144
========
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $128,825
Accumulated net investment loss (637)
Accumulated net realized loss (8,506)
Net unrealized appreciation 2,462
--------
NET ASSETS $122,144
========
CLASS A
Net asset value per share $11.56
Offering price per share $11.56/(1-5.75%) $12.27
Shares of beneficial interest outstanding, no par value,
unlimited authorization 6,612
Net Assets $ 76,445
CLASS B
Net asset value and offering price per share $10.21
Shares of beneficial interest outstanding, no par value,
unlimited authorization 1,249
Net Assets $ 12,750
CLASS C
Net asset value and offering price per share $10.20
Shares of beneficial interest outstanding, no par value,
unlimited authorization 3,229
NET ASSETS $ 32,949
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY 29, 2008
(UNAUDITED)
(Reported in thousands)
INVESTMENT INCOME
Dividends $ 519
Interest 40
Security lending 81
--------
Total investment income 640
--------
EXPENSES
Investment advisory fee 676
Service fees, Class A 116
Distribution and service fees, Class B 83
Distribution and service fees, Class C 205
Administration fee 62
Transfer agent 148
Printing 34
Professional 21
Registration 21
Custodian 18
Trustees 7
Miscellaneous 16
--------
Total expenses 1,407
Less expenses reimbursed by investment adviser (136)
Custodian fees paid indirectly --(*)
--------
Net expenses 1,271
--------
NET INVESTMENT INCOME (LOSS) (631)
--------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments (12,108)
Net change in unrealized appreciation (depreciation)
on investments (5,460)
--------
NET GAIN (LOSS) ON INVESTMENTS (17,568)
--------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $(18,199)
========
(*) Amount less than $500.
20 See Notes to Financial Statements
Phoenix Small-Cap Value Fund
STATEMENT OF CHANGES IN NET ASSETS
(Reported in thousands)
Six Months
Ended
February 29, 2008 Year Ended
(Unaudited) August 31, 2007
----------------- ---------------
FROM OPERATIONS
Net investment income (loss) $ (631) $ (433)
Net realized gain (loss) (12,108) 34,134
Net change in unrealized appreciation (depreciation) (5,460) (27,725)
-------- --------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (18,199) 5,976
-------- --------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized short-term gains, Class A (227) (3,133)
Net realized short-term gains, Class B (45) (713)
Net realized short-term gains, Class C (110) (1,512)
Net realized long-term gains, Class A (14,586) (18,655)
Net realized long-term gains, Class B (2,866) (4,248)
Net realized long-term gains, Class C (7,062) (9,006)
-------- --------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (24,896) (37,267)
-------- --------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (226 and 391 shares, respectively) 3,103 6,900
Net asset value of shares issued from reinvestment of distributions
(1,015 and 1,174 shares, respectively) 13,090 19,861
Cost of shares repurchased (1,237 and 2,297 shares, respectively) (17,647) (40,481)
-------- --------
Total (1,454) (13,720)
-------- --------
CLASS B
Proceeds from sales of shares (32 and 76 shares, respectively) 365 1,207
Net asset value of shares issued from reinvestment of distributions
(223 and 266 shares, respectively) 2,546 4,094
Cost of shares repurchased (381 and 757 shares, respectively) (4,798) (12,240)
-------- --------
Total (1,887) (6,939)
-------- --------
CLASS C
Proceeds from sales of shares (71 and 108 shares, respectively) 815 1,698
Net asset value of shares issued from reinvestment of distributions
(542 and 573 shares, respectively) 6,183 8,811
Cost of shares repurchased (720 and 970 shares, respectively) (9,267) (15,591)
-------- --------
Total (2,269) (5,082)
-------- --------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (5,610) (25,741)
-------- --------
NET INCREASE (DECREASE) IN NET ASSETS (48,705) (57,032)
NET ASSETS
Beginning of period 170,849 227,881
-------- --------
END OF PERIOD (INCLUDING ACCUMULATED NET INVESTMENT LOSS OF $(637) AND $(6), RESPECTIVELY) $122,144 $170,849
======== ========
See Notes to Financial Statements 21
PHOENIX INVESTMENT TRUST 97
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
NET
ASSET NET NET TOTAL DIVIDENDS DISTRIBUTIONS
VALUE, INVESTMENT REALIZED AND FROM FROM NET FROM NET
BEGINNING INCOME UNREALIZED INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD (LOSS)(1) GAIN (LOSS) OPERATIONS INCOME GAINS DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
- --------------------
SMALL-CAP VALUE FUND
- --------------------
CLASS A
9/1/07 to 2/29/08 $15.72 $(0.04) $(1.65) $(1.69) $ -- $(2.47) $(2.47)
9/1/06 to 8/31/07 18.45 0.02 0.38 0.40 -- (3.13) (3.13)
9/1/05 to 8/31/06 19.45 (0.05) 1.01 0.96 -- (1.96) (1.96)
9/1/04 to 8/31/05 15.08 (0.03) 4.40 4.37 -- -- --
9/1/03 to 8/31/04 13.42 (0.06) 1.72 1.66 -- -- --
9/1/02 to 8/31/03 11.30 --(3) 2.12 2.12 -- -- --
CLASS B
9/1/07 to 2/29/08 $14.22 $(0.08) $(1.46) $(1.54) $ -- $(2.47) $(2.47)
9/1/06 to 8/31/07 17.07 (0.11) 0.39 0.28 -- (3.13) (3.13)
9/1/05 to 8/31/06 18.26 (0.18) 0.95 0.77 -- (1.96) (1.96)
9/1/04 to 8/31/05 14.27 (0.15) 4.14 3.99 -- -- --
9/1/03 to 8/31/04 12.79 (0.16) 1.64 1.48 -- -- --
9/1/02 to 8/31/03 10.85 (0.08) 2.02 1.94 -- -- --
CLASS C
9/1/07 to 2/29/08 $14.22 $(0.08) $(1.47) $(1.55) $ -- $(2.47) $(2.47)
9/1/06 to 8/31/07 17.07 (0.11) 0.39 0.28 -- (3.13) (3.13)
9/1/05 to 8/31/06 18.26 (0.18) 0.95 0.77 -- (1.96) (1.96)
9/1/04 to 8/31/05 14.27 (0.15) 4.14 3.99 -- -- --
9/1/03 to 8/31/04 12.79 (0.16) 1.64 1.48 -- -- --
9/1/02 to 8/31/03 10.85 (0.08) 2.02 1.94 -- -- --
(1) Computed using average shares outstanding.
(2) Sales charges are not reflected in total return calculation.
(3) Amount is less than $0.01.
(4) Annualized.
(5) Not Annualized.
22 See Notes to Financial Statements
RATIO OF
NET NET RATIO OF NET GROSS RATIO OF NET
ASSET ASSETS, OPERATING OPERATING INVESTMENT
CHANGE IN VALUE, END OF EXPENSES TO EXPENSES TO INCOME TO
NET ASSET END OF TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET PORTFOLIO
VALUE PERIOD RETURN(2) (000'S) ASSETS ASSETS ASSETS TURNOVER
- ------------------------------------------------------------------------------------------------------------------------------------
- --------------------
SMALL-CAP VALUE FUND
- --------------------
CLASS A
9/1/07 to 2/29/08 $(4.16) $11.56 (12.39)%(5) $ 76,445 1.40%(4) 1.59%(4) (0.55)%(4) 52%(5)
9/1/06 to 8/31/07 (2.73) 15.72 0.97 103,875 1.43 1.56 0.10 205
9/1/05 to 8/31/06 (1.00) 18.45 5.32 135,436 1.40 1.50 (0.28) 121
9/1/04 to 8/31/05 4.37 19.45 28.98 147,132 1.40 1.56 (0.17) 102
9/1/03 to 8/31/04 1.66 15.08 12.37 124,165 1.40 1.57 (0.38) 150
9/1/02 to 8/31/03 2.12 13.42 18.76 76,783 1.40 1.71 0.04 241
CLASS B
9/1/07 to 2/29/08 $(4.01) $10.21 (12.66)%(5) $ 12,750 2.15%(4) 2.33%(4) (1.30)%(4) 52%(5)
9/1/06 to 8/31/07 (2.85) 14.22 0.26 19,552 2.18 2.31 (0.66) 205
9/1/05 to 8/31/06 (1.19) 17.07 4.57 30,567 2.15 2.25 (1.04) 121
9/1/04 to 8/31/05 3.99 18.26 27.96 42,081 2.15 2.31 (0.91) 102
9/1/03 to 8/31/04 1.48 14.27 11.57 43,801 2.15 2.33 (1.15) 150
9/1/02 to 8/31/03 1.94 12.79 17.88 40,696 2.15 2.46 (0.71) 241
CLASS C
9/1/07 to 2/29/08 $(4.02) $10.20 (12.74)%(5) $ 32,949 2.15%(4) 2.34%(4) (1.30)%(4) 52%(5)
9/1/06 to 8/31/07 (2.85) 14.22 0.26 47,422 2.18 2.31 (0.65) 205
9/1/05 to 8/31/06 (1.19) 17.07 4.57 61,878 2.15 2.25 (1.03) 121
9/1/04 to 8/31/05 3.99 18.26 27.96 69,957 2.15 2.31 (0.91) 102
9/1/03 to 8/31/04 1.48 14.27 11.57 71,296 2.15 2.32 (1.14) 150
9/1/02 to 8/31/03 1.94 12.79 17.88 51,559 2.15 2.46 (0.72) 241
See Notes to Financial Statements 23
PHOENIX INVESTMENT TRUST 97
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2008 (UNAUDITED)
1. ORGANIZATION
Phoenix Investment Trust 97 (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.
Currently, three Funds are offered for sale (each a "Fund"). The Phoenix
Quality Small-Cap Fund ("Quality Small-Cap Fund"), the Phoenix Small-Cap
Sustainable Growth Fund ("Small-Cap Sustainable Growth Fund") and the Phoenix
Small-Cap Value Fund ("Small-Cap Value Fund") are each diversified and each has
an investment objective of long-term capital appreciation.
The Funds offer the following classes of shares for sale:
Class I Class A Class B Class C
------- ------- ------- -------
Quality Small-Cap Fund ........... X X -- X
Small-Cap Sustainable Growth Fund. X X -- X
Small-Cap Value Fund ............. -- X 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 within one year on purchases on which a finder's fee has
been paid. Class B shares are sold with a contingent deferred sales charge,
which declines from 5% to zero depending on the period of time the shares are
held. Class C shares are sold with a 1% contingent deferred sales charge if
redeemed within one year of purchase. Class I shares are sold without a sales
charge.
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:
Equity securities are valued at the official closing price (typically last
sale) on the exchange on which the securities are primarily traded, or if no
closing price is available, at the last bid price.
Debt securities are valued on the basis of broker quotations or valuations
provided by a pricing service, which utilizes information with respect to recent
sales, market transactions in comparable securities, quotations from dealers,
and various relationships between securities in determining value.
As required, some securities and assets may be valued at fair value as
determined in good faith by or under the direction of the Trustees.
Certain foreign common stocks may be fair valued in cases where closing
prices are not readily available or are deemed not reflective of readily
available market prices. For example, significant events (such as movement in
the U.S. securities market, or other regional and local developments) may occur
between the time that foreign markets close (where the security is principally
traded) and the time that the Fund calculates its net asset value (generally,
the close of the NYSE) that may impact the value of securities traded in these
foreign markets. In these cases, information from an external vendor may be
utilized to adjust closing market prices of certain foreign common stocks to
reflect their fair value. Because the frequency of significant events is not
predictable, fair valuation of certain foreign common stocks may occur on a
frequent basis.
Short-term investments having a remaining maturity of 60 days or less are
valued at amortized cost, which approximates market.
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 and expands
disclosures about fair value measurements. Management is currently evaluating
the impact the adoption of SFAS 157 will have on the Funds' financial statement
disclosures. The Funds will be adopting SFAS 157 effective with the March 31,
2008 reporting of the financial statements.
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.
24
PHOENIX INVESTMENT TRUST 97
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2008 (UNAUDITED) (CONTINUED)
The Trust may be subject to foreign taxes on income, gains on investments or
currency repatriation, a portion of which may be recoverable. Each Fund will
accrue such taxes and recoveries as applicable based upon current
interpretations of the tax rules and regulations that exist in the markets in
which it invests.
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. Management has analyzed the Funds' tax
positions taken on federal income tax returns for all open tax years (tax years
ended August 31, 2004-2007 and the six months ended February 29, 2008) for the
purpose of implementing FIN 48 and has concluded that no provision for income
tax is required in the Funds' financial statements. Management is not aware of
any events that are reasonably possible to occur in the next six months that
would result in the amount of any unrecognized tax benefits significantly
increasing or decreasing for the Funds.
D. DISTRIBUTIONS TO SHAREHOLDERS:
Distributions are recorded by each Fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with income tax
regulations which may differ from accounting principles generally accepted in
the United States of America. These differences may include the treatment of
non-taxable dividends, market premium and discount, non-deductible expenses,
expiring capital loss carryovers, foreign currency gain or loss, gain or loss on
futures contracts, partnerships, operating losses and losses deferred due to
wash sales. Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to capital paid in on shares of
beneficial interest.
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.
F. FOREIGN CURRENCY TRANSLATION:
Foreign securities and other assets and liabilities are valued using the
foreign currency exchange rate effective at the end of the reporting period.
Cost of investments is translated at the currency exchange rate effective at the
trade date. The gain or loss resulting from a change in currency exchange rates
between the trade and settlement date of a portfolio transaction is treated as a
gain or loss on foreign currency. Likewise, the gain or loss resulting from a
change in currency exchange rates between the date income is accrued and paid is
treated as a gain or loss on foreign currency. The Trust does not isolate that
portion of the results of operations arising from either changes in exchange
rates or in the market prices of securities.
G. FOREIGN SECURITY COUNTRY DETERMINATION:
A combination of the following criteria is used to assign the countries of
risk listed in the schedules of investments: country of incorporation, actual
building address, primary exchange on which the security is traded and country
in which the greatest percentage of company revenue is generated.
H. SECURITIES LENDING:
The Funds may loan securities to qualified brokers through an agreement with
State Street Bank and Trust Company (the "Custodian"). Under the terms of
agreement, the Fund is required to maintain collateral with a market value not
less than 100% of the market value of loaned securities. Collateral is adjusted
daily in connection with changes in the market value of securities on loan.
Collateral may consist of cash and/or securities issued or guaranteed by the
U.S. Government or its agencies. Cash collateral is invested in a short-term
money market fund. Dividends earned on the collateral and premiums paid by the
broker are recorded as income by the Fund net of fees and rebates charged by the
Custodian for its services in connection with this securities lending program.
Lending portfolio securities involves a risk of delay in the recovery of the
loaned securities or in the foreclosure on collateral.
As of February 29, 2008, the Small-Cap Value Fund had securities on loan as
follows (reported in 000's):
Market
Value
of Securities Non-Cash Cash
Loaned Collateral Collateral
------------- -------------- --------------
$29,131 $167 $30,916
I. REIT INVESTMENTS:
Dividend income is recorded using management's estimate of the income
included in distributions received from the REIT investments. Distributions
received in excess of this estimated amount are recorded as a reduction of the
cost of investments or reclassified to capital gains. The actual amounts of
income, return of capital, and capital gains are only determined by each REIT
after its fiscal year-end, and may differ from the estimated amounts.
J. REPURCHASE AGREEMENTS:
A repurchase agreement is a transaction where a Fund acquires a security for
cash and obtains a simultaneous commitment from the seller to repurchase the
security at an agreed upon price and date. Each Fund, through its custodian,
takes possession of securities collateralizing the repurchase agreement. The
collateral is marked-to-market daily to ensure that the market value of the
underlying assets remains
25
PHOENIX INVESTMENT TRUST 97
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2008 (UNAUDITED) (CONTINUED)
sufficient to protect the Fund in the event of default by the seller. If the
seller defaults and the value of the collateral declines, or if the seller
enters insolvency proceedings, realization of collateral may be delayed or
limited.
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 based upon the following annual rates as a
percentage of the average daily net assets of each Fund:
First $400+ Million - $1+
$400 Million $1 Billion Billion
------------ --------------- ---------
Quality Small-Cap Fund ...... 0.90% 0.85% 0.80%
Small-Cap Sustainable
Growth Fund ............... 0.90% 0.85% 0.80%
First $1+ Billion - $2+
$1 Billion $2 Billion Billion
------------ --------------- ---------
Small-Cap Value Fund ........ 0.90% 0.85% 0.80%
The Adviser has voluntarily agreed to limit total fund operating expenses
(excluding interest, taxes and extraordinary expenses), so that such expenses do
not exceed the following percentages of the average annual net asset values for
the Funds:
Class I Class A Class C
------- ------- -------
Quality Small-Cap Fund ................. 1.15% 1.40% 2.15%
Small-Cap Sustainable Growth Fund ...... 1.15% 1.40% 2.15%
Class A Class B Class C
------- ------- -------
Small-Cap Value Fund ................... 1.40% 2.15% 2.15%
The adviser may discontinue this reimbursement arrangement at any time.
Effective August 23, 2007, the Adviser may recapture operating expenses
waived or reimbursed under this arrangement, within three fiscal years following
the end of the fiscal year in which such waiver or reimbursement occurred. Each
Fund must pay its ordinary operating expenses before the Adviser is entitled to
any reimbursement and must remain in compliance with applicable expense
limitations. All or a portion of the following Adviser reimbursed expenses may
be recaptured by the fiscal year ended 2010 (reported in 000s):
Quality Small-Cap Fund............... $ 9
Small-Cap Sustainable Fund............ 8
Small-Cap Value Fund.................. --
Kayne Anderson Rudnick Investment Management, LLC ("Kayne") an indirect
wholly-owned subsidiary of PNX, is the subadviser to the Quality Small-Cap and
Small-Cap Sustainable Growth Funds.
Euclid Advisors LLC ("Euclid"), an indirect wholly-owned subsidiary of PNX,
is the subadviser to the Small-Cap Value Fund.
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 six
months (the "period") ended February 29, 2008, as follows (reported in 000s):
Class A Class B Class C
Net Selling Deferred Deferred
Commissions Sales Charges Sales Charges
----------- ------------- -------------
Quality Small-Cap Fund ........... $2 $-- $ 1
Small-Cap Sustainable
Growth Fund .................... 1 -- --(1)
Small-Cap Value Fund ............. 2 8 1
(1) Amount is less than $1,000.
In addition, each Fund pays PEPCO distribution and/or service fees at an
annual rate of 0.25% for Class A shares, 1.00% for Class B shares and 1.00% for
Class C shares applied to the average daily net assets of each respective Class.
Class I shares do not pay distribution 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, which
includes financial agent 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 February 29, 2008, the Trust incurred administration
fees totaling $83 (reported in 000s).
PEPCO serves as the Trust's transfer agent with Boston Financial Data
Services, Inc. serving as sub-transfer agent. For the period ended February 29,
2008, transfer agent fees were $170 (reported in 000s) as reported in the
Statements of Operations.
26
PHOENIX INVESTMENT TRUST 97
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2008 (UNAUDITED) (CONTINUED)
At February 29, 2008, PNX and its affiliates, and Phoenix-affiliated Funds
held shares which aggregated the following:
Aggregate
Net Asset
Value
Shares (reported in 000s)
-------- ------------------
Quality Small-Cap Fund
- --Class I .................................. 254,860 $2,559
- --Class A .................................. 312,604 3,135
Small-Cap Sustainable Growth Fund
- --Class A .................................. 351,869 3,315
- --Class C .................................. 10,000 93
Small-Cap Value Fund
- --Class A .................................. 285,950 3,306
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 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 February 29, 2008.
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding U.S. Government
and agency securities and short-term securities) during the period ended
February 29, 2008, were as follows (reported in 000s):
Purchases Sales
----------- ----------
Quality Small-Cap Fund ..................... $44,226 $ --
Small-Cap Sustainable Growth Fund .......... 2,207 1,876
Small-Cap Value Fund ....................... 77,355 102,664
There were no purchases or sales of long-term U.S. Government and agency
securities for the period ended February 29, 2008.
5. 10% SHAREHOLDERS
As of February 29, 2008, 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
----------- ---------
Small-Cap Sustainable Growth Fund .......... 36% 2
One of the shareholder accounts is affiliated with PNX.
6. CREDIT RISK AND ASSET CONCENTRATIONS
In countries with limited or developing markets, investments may present
greater risks than in more developed markets and the prices of such investments
may be volatile. The consequences of political, social or economic changes in
these markets may have disruptive effects on the market prices of these
investments and the income they generate, as well as a Fund's ability to
repatriate such amounts.
The 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.
At February 29, 2008, the Quality Small-Cap Fund held investments issued by
various companies in the industrials sector, comprising 30% of the total net
assets of the Fund. The Small-Cap Sustainable Growth Fund held investments
issued by various companies in the information technology sector, comprising 37%
of the total net assets of the Fund. The Small-Cap Value Fund held investments
issued by various companies in the financials sector, comprising 27% of the
total net assets of the Fund.
7. ILLIQUID SECURITIES
Investments shall be considered illiquid if they cannot be disposed of within
seven days in the ordinary course of business at the approximate amount at which
such securities have been valued by the Fund. Additionally, the following
information is also considered in determining liquidity: the frequency of trades
and quotes for the investment, whether the investment is listed for trading on a
recognized domestic exchange and/or whether two or more brokers are willing to
purchase or sell the security at a comparable price, the extent of market making
activity in the investment and the nature of the market for investment. Illiquid
securities are noted as such at the end of each Fund's Schedule of Investments
where applicable.
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.
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 was
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 $8,000 and to revise its supervisory procedures.
27
PHOENIX INVESTMENT TRUST 97
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2008 (UNAUDITED) (CONTINUED)
The Company does not believe that the outcome of this matter will be material
to these financial statements.
9. 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.
10. FEDERAL INCOME TAX INFORMATION
The following Fund has capital loss carryovers, which may be used to offset
future capital gains, as follows:
Expiration Year
---------------------
2014 Total
------ ------
Small-Cap Sustainable Growth Fund ............... $1,859 $1,859
The Fund may not realize the benefit of these losses to the extent that the
Fund does not realize gains on investments prior to the expiration of its
capital loss carryovers.
The differences between the book and tax basis components of
distributable earnings relate principally to the timing of recognition of income
and gains for federal income tax purposes. Short-term gain distributions
reported in the Statement of Changes in Net Assets, if any are reported as
ordinary income for federal tax purposes.
11. SUBSEQUENT EVENTS
Effective March 10, 2008, the Funds are being added to the Phoenix Equity
Trust each as a new series which is an exact clone of the existing Phoenix Fund
by the same name. Simultaneous to the reorganization, the original funds will
cease to exist in the Trust and will each be registered series only of the
Phoenix Equity Trust.
Fund Name Current Trust
- ------------------------------ ---------------------------
Phoenix Quality Small-Cap Fund Phoenix Investment Trust 97
Phoenix Small-Cap Sustainable
Growth Fund Phoenix Investment Trust 97
Phoenix Small-Cap Value Fund Phoenix Investment Trust 97
On February 7, 2008, PNX announced that it intends to spin off its asset
management subsidiary ("spin-off"), Phoenix Investment Partners ("PXP"), to
PNX's shareholders. The Fund's Administrator and Transfer Agent, PEPCO, a
subsidiary of PXP, and PIC, a subsidiary of PXP, which is the Adviser to the
Trust, are also intended to be part of the spin-off.
28
CONSIDERATION OF ADVISORY AND SUB-ADVISORY AGREEMENTS
BY THE BOARD OF TRUSTEES (UNAUDITED)
The Board of Trustees of the Trust, along with the Boards of Trustees of the
other trusts in the Phoenix family of funds (collectively, the "Board"), is
responsible for determining whether to approve the entering into and
continuation of each investment advisory and sub-advisory agreement (each, an
"Agreement") for the Phoenix funds (collectively, the "Funds"). At meetings held
on November 13 - 16, 2007, the Board, including a majority of the Trustees who
are not interested persons as defined in Section 2(a)(19) of the Investment
Company Act of 1940, considered and approved the continuation of each Agreement,
as further discussed below. In approving each Agreement, the Board determined
that the continued retention of the applicable advisor or sub-advisor was in the
best interests of each Fund and its shareholders. The Trustees considered each
Fund separately, although they also collectively took into account those
interests that all the Funds had in common.
In reaching their decisions, the Board considered information furnished
throughout the year at regular Board meetings as well as information prepared
specifically in connection with the annual review process. During the review
process, the Board received assistance and advice from and met separately with
independent legal counsel. The Board's determination contemplated a number of
factors that the Trustees believed to be relevant. Some of the factors that the
Board considered are described below, although the Trustees did not identify any
particular information or factor as controlling, but, instead, the Board
considered the Agreements in the totality of the circumstances. Each individual
Trustee may have evaluated the information presented differently, giving
different weights to different factors.
NATURE, EXTENT AND QUALITY OF SERVICES. The majority of the Funds(1) are
managed using a "manager of managers" structure that generally involves the use
of one or more sub-advisors to manage some or all of a Fund's portfolio. Under
this structure, Phoenix Investment Counsel, Inc. ("PIC") is responsible for
evaluating and selecting sub-advisors on an ongoing basis and for making any
recommendations to the Board regarding hiring, retaining or replacing
sub-advisors. In considering the Agreement with PIC, therefore, the Trustees
considered PIC's process for supervising and managing the Funds' sub-advisors,
including (a) PIC's ability to select and monitor the sub-advisors; (b) PIC's
ability to provide the services necessary to monitor the sub-advisors'
compliance with the Funds' respective investment objectives, policies and
restrictions as well as provide other oversight activities; and (c) PIC's
ability and willingness to identify instances in which a sub-advisor should be
replaced and to carry out the required changes. The Trustees also considered:
(d) the experience, capability and integrity of PIC's management and other
personnel; (e) the financial position of PIC; (f) the quality of PIC's own
regulatory and legal compliance policies, procedures and systems; (g) the
nature, extent and quality of administrative and other services provided by PIC
to the Funds; and (h) PIC's supervision of the Funds' other service providers.
Finally, the Board also noted the extent of benefits that are provided to Fund
shareholders as a result of being part of the Phoenix family of Funds, including
the right to exchange investments between the same class of Funds without a
sales charge, the ability to reinvest Fund dividends into other Funds and the
right to combine holdings in other Funds to obtain a reduced sales charge.
With respect to the sub-advisory Agreements, the Board noted that each
sub-advisor provided information with respect to portfolio management,
compliance with the respective Fund's investment policies and procedures, and
compliance with applicable securities laws and assurances thereof. In
considering the renewal of the sub-advisory Agreements, the Board considered
each sub-advisor's investment management process, including (a) the experience,
capability and integrity of the sub-advisor's management and other personnel
committed by the sub-advisor to manage its respective Fund(s); (b) the financial
position of the sub-advisor; (c) the quality and commitment of the sub-advisor's
regulatory and legal compliance policies, procedures and systems; and (d) the
sub-advisor's brokerage and trading practices.
After considering all of the information provided to them, the Trustees
concluded that the nature, extent and quality of the services provided by PIC
and each sub-advisor were reasonable and beneficial to the Funds and their
shareholders.
INVESTMENT PERFORMANCE. The Board placed significant emphasis on its
consideration of the investment performance of the Funds, in view of its
importance to shareholders, and the Board evaluated Fund performance in the
context of the manager-of-managers structure. The Board also considered that PIC
continued to be proactive in seeking to replace and/or add sub-advisors as
necessary, with a view toward improving Fund performance over the long term.
While consideration was given to performance reports and discussions at Board
meetings throughout the year, particular attention in assessing performance was
given to a report (the "Lipper Report") for the Funds prepared by Lipper Inc.
("Lipper") and furnished specifically for the contract renewal process. Lipper
is an independent provider of investment company data. The Lipper Report
presented each Fund's short-term and long-term performance relative to a peer
group of other mutual funds and benchmarks, as selected by Lipper. The Board
considered the composition of each peer group, selection criteria and the
appropriateness of the benchmark used for each Fund. The Board also assessed
each Fund's performance relative to the fees and expenses of each Fund as well
as PIC's profitability.
- -----------------
(1) DURING THE PERIOD BEING REPORTED, THE ONLY FUND THAT DID NOT EMPLOY A
MANAGER OF MANAGERS STRUCTURE WAS THE PHOENIX GROWTH & INCOME FUND, WHICH IS
A SERIES OF PHOENIX EQUITY SERIES FUND. PIC ACTED AS THE ADVISOR FOR THAT
FUND WITHOUT EMPLOYING A SUB-ADVISOR, WHICH MEANS THAT PIC PROVIDED FOR THAT
FUND THE SERVICES THAT FOR THE OTHER FUNDS WERE PROVIDED BY SUB-ADVISORS.
THE BOARD CONSIDERED THE PIC AGREEMENT WITH RESPECT TO THAT FUND IN THAT
CONTEXT.
29
CONSIDERATION OF ADVISORY AND SUB-ADVISORY AGREEMENTS
BY THE BOARD OF TRUSTEES (UNAUDITED) (CONTINUED)
The Board noted that while many of the Funds had generally performed in line
with their respective benchmarks and peer groups during the periods measured,
some of the Funds had underperformed compared to their respective benchmarks
and/or peer groups. The Board noted that certain of the Funds' underperformance
was slight. Also, some of the Funds underperforming their benchmarks and/or peer
groups for a given period had outperformed such benchmarks and/or peer groups
during other periods. Where significant, the Board extensively considered the
performance of the underperforming Funds and the reasons for the performance
issues. The Board discussed the possible reasons for the underperformance with
PIC and spoke with PIC regarding plans to monitor and address performance issues
during the coming year.
After considering all of the information presented, the Board ultimately
concluded that it should approve the continuation of the Agreements. However,
the Board noted that certain Funds' performance would continue to be closely
monitored by PIC so that if performance over a longer period of time did not
improve, the sub-advisor would be replaced in a timely manner.
PROFITABILITY. The Board also considered the level of profits realized by PIC
and its affiliates in connection with the operation of the Funds. In this
regard, the Board reviewed the analysis presented by PIC regarding its overall
profitability for its management of the Phoenix retail fund family as well as
the profits of its affiliates for managing and providing other services to each
Fund. In addition to the fees paid to PIC and its affiliates, the Trustees
considered any other benefits derived by PIC or its affiliates from their
relationship with the Funds. Specific attention was paid to the methodology used
to allocate costs to each Fund, in recognition of the fact that allocation
methodologies are inherently subjective and various allocation methodologies may
each be reasonable while producing different results. In this regard, the Board
noted that the allocations appeared reasonable and concluded that the
profitability to PIC from each Fund was reasonable in light of the quality of
all services rendered to the Funds by PIC and its affiliates.
The Board did not separately review profitability information for each
sub-advisor, noting that the sub-advisory fees are paid by PIC rather than the
Funds.
MANAGEMENT FEES AND TOTAL EXPENSES. In evaluating the management fees and
total expenses of each Fund, the Board reviewed information provided by PIC and
comparisons to other funds in each Fund's peer group as presented in the Lipper
Report. The Board noted that several of the Funds had incurred one-time costs
related to a shareholder proxy, causing expenses for the period shown to be
higher than would be expected in future periods. The Board also noted that
certain Funds had higher gross expenses when expressed as a percentage of net
assets than those of such Funds' larger peers, which the Trustees considered in
the context of the Funds' expectations for future growth. Finally, the Board
noted that several of the Funds had fee waivers and/or expense caps in place to
limit the total expenses incurred by the Funds and their shareholders. Based
upon the information presented by PIC and Lipper, the Trustees determined that
the management fees charged by PIC and the total expenses of the Funds were
reasonable.
The Board did not receive comparative fee information relating specifically
to sub-advisory fees, in light of the fact that the sub-advisory fees are paid
by PIC and not by the Funds.
ECONOMIES OF SCALE. The Board noted that the management fees for several of
the Funds included breakpoints based on assets under management, and fee waivers
and/or expense caps were also in place for several of the Funds. The Board
determined that PIC and the Funds likely would achieve certain economies of
scale, particularly in relationship to certain fixed costs, and shareholders of
the Funds would have an opportunity to benefit from these economies of scale.
In considering the sub-advisory Agreements, the Board also considered the
existence of any economies of scale and whether they would be passed along to
the Funds' shareholders, but noted that any such economies would likely be
generated at the Fund level rather than at the sub-advisor level.
30
PHOENIX INVESTMENT TRUST 97
101 Munson Street
Greenfield, MA 01301-9668
TRUSTEES
George R. Aylward
E. Virgil Conway
Harry Dalzell-Payne
Francis E. Jeffries
Leroy Keith, Jr.
Philip R. McLoughlin, Chairman
Geraldine M. McNamara
James M. Oates
Richard E. Segerson
Ferdinand L.J. Verdonck
OFFICERS
George R. Aylward, President
Nancy G. Curtiss, Senior Vice President
Marc Baltuch, Vice President and Chief Compliance Officer
W. Patrick Bradley, Chief Financial Officer and
Treasurer
Kevin J. Carr, Vice President, Counsel, Secretary
and Chief Legal Officer
INVESTMENT ADVISER
Phoenix Investment Counsel, Inc.
56 Prospect Street
Hartford, CT 06115-0480
PRINCIPAL UNDERWRITER
Phoenix Equity Planning Corporation
One American Row
Hartford, CT 06103-2899
TRANSFER AGENT
Phoenix Equity Planning Corporation
One American Row
Hartford, CT 06103-2899
CUSTODIAN
State Street Bank and Trust Company
P.O. Box 5501
Boston, MA 02206-5501
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.
- --------------------------------------------------------------------------------
(This page has been left blank intentionally.)
------------------
PRSRT STD
U.S. POSTAGE
[LOGO OMITTED] PAID
PHOENIX LANCASTER, PA
PERMIT 1793
------------------
Phoenix Equity Planning Corporation
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.
NOT INSURED BY FDIC/NCUSIF OR ANY FEDERAL GOVERNMENT AGENCY.
NO BANK GUARANTEE. NOT A DEPOSIT. MAY LOSE VALUE.
PXP214 4-08
BPD34607
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Schedule of Investments in securities of unaffiliated issuers as of the close of
the reporting period is included as part of the report to shareholders filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's board of 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) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section
302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section
906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) Phoenix Investment Trust 97
--------------------------------------------------------------------
By (Signature and Title)* /s/ George R. Aylward
-------------------------------------------------------
George R. Aylward, President
(principal executive officer)
Date May 5, 2008
----------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ George R. Aylward
-------------------------------------------------------
George R. Aylward, President
(principal executive officer)
Date May 5, 2008
----------------------------------------------------------------------------
By (Signature and Title)* /s/ W. Patrick Bradley
-------------------------------------------------------
W. Patrick Bradley, Chief Financial Officer
and Treasurer
(principal financial officer)
Date May 5, 2008
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.