UNITED STATES SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   -----------

                                   FORM 10-QSB

  X     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
-----   ACT OF 1934

                For the quarterly period ended September 30, 1998

                                       OR

-----   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934

        For the transition  period from  ______________ to ______________.

                         Commission file number 0-17989
                                                -------

                       PHOENIX HIGH TECH/HIGH YIELD FUND,
                        A CALIFORNIA LIMITED PARTNERSHIP
--------------------------------------------------------------------------------
                                   Registrant

            California                                    68-0166383    
---------------------------------             ----------------------------------
      State of Jurisdiction                   I.R.S. Employer Identification No.


2401 Kerner Boulevard, San Rafael, California                94901-5527
--------------------------------------------------------------------------------
 Address of Principal Executive Offices                       Zip Code

       Registrant's telephone number, including area code: (415) 485-4500
                                                           --------------

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  Registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
preceding requirements for the past 90 days.

                              Yes   X      No     
                                  -----       -----    

7,526 Units of Limited Partnership Interest were outstanding as of September 30,
1998.

Transitional small business disclosure format:

                              Yes          No   X
                                  -----       -----


                                  Page 1 of 11

<PAGE>


                          Part I. Financial Information
                          -----------------------------
                          Item 1. Financial Statements
                       PHOENIX HIGH TECH/HIGH YIELD FUND,
                        A CALIFORNIA LIMITED PARTNERSHIP
                                 BALANCE SHEETS
                 (Amounts in Thousands Except for Unit Amounts)
                                   (Unaudited)
                                                      September 30, December 31,
                                                          1998         1997
                                                          ----         ----
ASSETS

Cash and cash equivalents                                 $ 254       $ 496

Accounts receivable                                        --            37

Equipment on operating leases and held for lease
   (net of accumulated depreciation of $0 and
   $56 at September 30, 1998 and December 31,
   1997, respectively)                                     --           --

Investment in joint ventures                                105         130

Other assets                                                  2           2
                                                          -----       -----

     Total Assets                                         $ 361       $ 665
                                                          =====       =====

LIABILITIES AND PARTNERS' CAPITAL

Liabilities

   Accounts payable and accrued expenses                  $  21       $  20
                                                          -----       -----

     Total Liabilities                                       21          20
                                                          -----       -----

Partners' Capital (Deficit)

   General Partner                                           (2)        (15)

   Limited Partners, 25,000 units authorized,
     7,526 units issued and outstanding at
     September 30, 1998 and December 31, 1997               342         660
                                                          -----       -----

     Total Partners' Capital (Deficit)                      340         645
                                                          -----       -----

     Total Liabilities and Partners' Capital (Deficit)    $ 361       $ 665
                                                          =====       =====

        The accompanying notes are an integral part of these statements.

                                       2
<PAGE>


                       PHOENIX HIGH TECH/HIGH YIELD FUND,
                        A CALIFORNIA LIMITED PARTNERSHIP
                            STATEMENTS OF OPERATIONS
               (Amounts in Thousands Except for Per Unit Amounts)
                                   (Unaudited)

                                           Three Months Ended  Nine Months Ended
                                              September 30,      September 30,
                                             1998      1997      1998     1997
                                             ----      ----      ----     ----
INCOME

   Rental income                           $     7  $   --    $     7   $   --
   Earned income, financing leases             --       --        --          5
   Gain on sale of securities                  --       --        111        51
   Equity in earnings (losses) from joint
      ventures, net                              3       (3)      (10)      (10)
   Interest income, notes receivable           --        47         4        49
   Other income                                  4        7        11        23
                                           -------  -------   -------   -------

     Total Income                               14       51       123       118
                                           -------  -------   -------   -------

EXPENSES

   Amortization of acquisition fees            --       --        --          4
   Management fees to General Partner          --         2         4         7
   Reimbursed administrative costs to 
     General Partner                             3        2         8         7
   Provision for losses on receivables           6      --          6       --
   Legal expenses                              --         5         1        12
   General and administrative expenses           5        5        20        16
                                           -------  -------   -------   -------

     Total Expenses                             14       14        39        46
                                           -------  -------   -------   -------

NET INCOME                                 $   --   $    37   $    84   $    72
                                           =======  =======   =======   =======


NET INCOME PER LIMITED
   PARTNERSHIP UNIT                        $   --   $  4.82   $  9.01   $  7.87
                                           =======  =======   =======   =======

DISTRIBUTIONS PER LIMITED
   PARTNERSHIP UNIT                        $   --   $   --    $ 51.26   $153.79
                                           =======  =======   =======   =======

ALLOCATION OF NET INCOME:
     General Partner                       $   --   $     1   $    16   $    13
     Limited Partners                          --        36        68        59
                                           -------  -------   -------   -------

                                           $   --   $    37   $    84   $    72
                                           =======  =======   =======   =======

        The accompanying notes are an integral part of these statements.

                                       3
<PAGE>


                       PHOENIX HIGH TECH/HIGH YIELD FUND,
                        A CALIFORNIA LIMITED PARTNERSHIP
                            STATEMENTS OF CASH FLOWS
                             (Amounts in Thousands)
                                   (Unaudited)


                                                          Nine Months Ended
                                                             September 30,
                                                           1998        1997
                                                           ----        ----
Operating Activities:
--------------------
   Net income                                           $    84     $    72

   Adjustments to reconcile net income to net cash
    provided by operating activities:
     Amortization of acquisition fees                      --             4
     Gain on sale of securities                            (111)        (51)
     Equity in losses from joint ventures, net               10          10
     Provision for losses on accounts receivable              6        --
     Decrease in accounts receivable                         31          28
     Increase (decrease) in accounts payable and
       accrued expenses                                       1          (4)
     Increase in other assets                              --            (2)
                                                        -------     -------

Net cash provided by operating activities                    21          57
                                                        -------     -------

Investing Activities:
--------------------
   Principal payments, financing leases                    --            99
   Proceeds from sale of securities                         111          51
   Distributions from joint ventures                         15        --
                                                        -------     -------

Net cash provided by investing activities                   126         150
                                                        -------     -------

Financing Activities:
--------------------
   Distributions to partners                               (389)     (1,170)
                                                        -------     -------

Net cash used by financing activities                      (389)     (1,170)
                                                        -------     -------

Decrease in cash and cash equivalents                      (242)       (963)

Cash and cash equivalents, beginning of period              496       1,499
                                                        -------     -------

Cash and cash equivalents, end of period                $   254     $   536
                                                        =======     =======


        The accompanying notes are an integral part of these statements.

                                       4
<PAGE>



                       PHOENIX HIGH TECH/HIGH YIELD FUND,
                        A CALIFORNIA LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

Note 1.  General.
         -------

         The accompanying  unaudited  condensed  financial  statements have been
prepared by the  Partnership in accordance  with generally  accepted  accounting
principles, pursuant to the rules and regulations of the Securities and Exchange
Commission. In the opinion of Management,  all adjustments (consisting of normal
recurring  accruals)  considered  necessary  for a fair  presentation  have been
included. Although management believes that the disclosures are adequate to make
the information  presented not misleading,  it is suggested that these condensed
financial  statements be read in conjunction  with the financial  statements and
the notes included in the Partnership's  Financial Statement,  as filed with the
SEC in the latest annual report on Form 10-K.

         The Partnership  Agreement  stipulates the methods by which income will
be allocated to the General Partner and the limited  partners.  Such allocations
will be made using income or loss calculated under Generally Accepted Accounting
Principles  for book purposes,  which varies from income or loss  calculated for
tax purposes.

         The  calculation  of items of income and loss for book and tax purposes
may result in book basis  capital  accounts that vary from the tax basis capital
accounts. The requirement to restore any deficit capital balances by the General
Partner  will  be  determined  based  on the  tax  basis  capital  accounts.  At
liquidation  of the  Partnership,  the General  Partner's  remaining  book basis
capital  account  will be reduced to zero  through the  allocation  of income or
loss.

Note 2.  Reclassification.
         ----------------

         Reclassification  - Certain  1997  amounts  have been  reclassified  to
conform to the 1998 presentation.

Note 3.  Income Taxes.
         ------------

         Federal  and state  income tax  regulations  provide  that taxes on the
income  or loss of the  Partnership  are  reportable  by the  partners  in their
individual income tax returns. Accordingly, no provision for such taxes has been
made in the accompanying financial statements.

Note 4.  Net Income (Loss) and Distribution Per Limited Partnership Unit.
         ---------------------------------------------------------------

         Net income and distributions per limited partnership unit were based on
the limited  partners' share of net income and  distributions,  and the weighted
average number of units outstanding of 7,526 for the nine months ended September
30,  1998  and  1997.   For  purposes  of  allocating   net  income  (loss)  and
distributions to each individual limited partner, the Partnership  allocates net
income (loss) and distributions based upon each respective limited partner's net
capital contributions.



                                       5
<PAGE>

Note 5.  Investment in Joint Ventures.
         ----------------------------

Foreclosed Cable System Joint Ventures
--------------------------------------

         The aggregate  combined  financial  information of the foreclosed cable
systems joint ventures is presented as follows:

                                               September 30, December 31,
                                                  1998          1997
                                                  ----          ----
                                                (Amounts in Thousands)

         Assets                                   $602          $909
         Liabilities                                71           240
         Partners' Capital                         531           669

                                      Three Months Ended       Nine Months Ended
                                         September 30,           September 30,
                                        1998      1997         1998        1997
                                        ----      ----         ----        ----
                                                (Amounts in Thousands)

         Revenue                       $  96     $ 104        $ 219       $ 307
         Expenses                         77       120          275         361
         Net Income (Loss)                19       (16)         (56)        (54)



                                       6
<PAGE>




                       PHOENIX HIGH TECH/HIGH YIELD FUND,
                        A CALIFORNIA LIMITED PARTNERSHIP


Item 2.  Management's  Discussion  and Analysis of Financial  Condition  and
         -------------------------------------------------------------------
         Results of Operations.
         ---------------------

Results of Operations

     Phoenix High Tech/High Yield Fund, a California  limited  partnership ("the
Partnership")  reported  net  income  of $0 and  $84,000  for the three and nine
months  ended  September  30, 1998,  respectively,  as compared to net income of
$37,000 and $72,000 for the same periods in 1997.

     The decrease in net income for the three months ended  September  30, 1998,
compared  to the same  period in 1997,  is a result of an  absence  in  interest
income  from notes  receivable  compared  to  $47,000 in 1997.  During the three
months ended September 30, 1997, the Partnership received additional  settlement
proceeds from a defaulted note  receivable  with a net carrying value of $0. The
Partnership did not have such an occurrence during 1998.

     The  improvement  in net  income  experienced  for the  nine  months  ended
September 30, 1998 compared to 1997, is  attributable  to an increase in gain on
sale of securities  of $60,000.  The gain on sale of  securities,  for which the
Partnership received proceeds of $111,000 during the nine months ended September
30,  1998,  is due to the  exercise  and  sale  of  stock  warrants  held by the
Partnership.

     Total income  decreased by $37,000 during the three months ended  September
30, 1998,  compared to the same period in the previous  year,  but  increased by
$5,000 for the nine months  ended  September  30,  1998.  The  decrease in total
income experienced during the three months ended September 30, 1998, compared to
1997, is attributable  to the absence of interest income from notes  receivable,
as previously  discussed.  However,  during the three months ended September 30,
1998, the  Partnership  did recognize  rental income of $7,000 compared to $0 in
the previous year. The rental income is  attributable to the write-off of rental
liabilities.

     The increase in total income of $5,000 for the nine months ended  September
30, 1998,  compared to the same period in the previous  year,  is a result of an
increase in gain on sale of  securities  of $60,000,  as  previously  discussed,
which was partially offset by decreases in interest income from notes receivable
of $45,000 and other income of $12,000. The decrease in other income is a result
of a decline in  interest  income due to a decrease  in the amount of cash being
generated by the Partnership.

     Total expenses  remained the same for the three months ended  September 30,
1998, compared to the same period in the prior year, but decreased by $7,000 for
the nine months ended  September 30, 1998. The decline in total expenses for the
nine months ended September 30, 1998,  compared to the same period in 1997, is a
result of an absence in amortization  of acquisition  fees compared to $4,000 in
the previous  year,  as well as, a reduction in legal  expenses of $11,000.  The
absence of amortization of acquisition fees and decrease in legal expenses are a
result of the Partnership's remaining equipment being sold and the remaining net


                                       7
<PAGE>

investment in financing  leases coming to the end of their term during the third
quarter  of 1997.  The  absence  of  amortization  of  acquisition  fees and the
decrease in legal  expenses  for the nine  months  ended  September  30, 1998 is
partially  offset by an  increase  in  provision  for losses on  receivables  of
$6,000.

Liquidity and Capital Resources

     The cash  generated by leasing and financing  activities was $21,000 during
the nine months ended  September  30, 1998,  as compared to $156,000  during the
same period in 1997. The decrease in net cash generated by leasing and financing
activities for the nine months ended  September 30, 1998 is due primarily to the
absence of principal payments from financing leases, compared to $99,000 for the
prior year.

     The Partnership  received  distributions from joint ventures of $15,000 for
the nine months ended September 30, 1998,  compared to $0 for the same period in
1997. The increase in  distributions is a result of one foreclosed cable systems
joint venture making a final distribution.

     The cash  distributed  to partners was $389,000 and $1,170,000 for the nine
months ended September 30, 1998 and 1997,  respectively.  In accordance with the
Partnership  Agreement,  the Limited  Partners  are  entitled to 99% of the cash
available  for  distribution  and the  General  Partner is  entitled to 1%. As a
result,  the Limited Partners  received $385,000 and $1,158,000 in distributions
during  the  period  ended  September  30,  1998  and  1997,  respectively.  The
cumulative cash  distributions to limited partners are $7,380,000 and $6,995,000
at  September  30, 1998 and 1997,  respectively.  The General  Partner  received
$4,000 and  $12,000  for its share of the cash  distributions  during the period
ended September 30, 1998 and 1997, respectively.

     Distributions for the nine months ended September 30, 1997 were higher than
usual as a result of the receipt of a  settlement  payment on an  impaired  note
during the quarter ended  September 30, 1996.  The  Partnership  included  these
proceeds in the  January 15, 1997  distribution  to  partners.  The  Partnership
anticipates making a distribution to partners on or before December 31, 1998.

     The  General  Partner  currently  anticipates  that  it may  not be able to
liquidate the remaining assets by December 31, 1998, as previously reported. The
remaining  assets of the  Partnership  consist  primarily  of an  investment  in
Phoenix  Pacific  Northwest  J.V., a foreclosed  cable  television  system joint
venture.  The General  Partner is continuing its efforts in marketing this cable
television system for sale.

Impact of the Year 2000 Issue

     The "Year 2000 problem" arose because many existing  computer  programs use
only the last two  digits to refer to a year.  Therefore,  these  computers  and
computer programs do not properly recognize a year that begins with "20" instead
of the familiar "19." If not corrected, many computer applications could fail or
create erroneous results.

     The General  Partner has performed an  assessment of the computer  programs
used to conduct the  business of the  Partnership  that are subject to Year 2000
risk.  The General  Partner and its  affiliates  are currently in the process of
testing, upgrading, modifying and replacing existing computer programs that have
been determined not to be Year 2000 compliant. It is estimated that this project
will be completed in mid 1999.  However,  if this project is not  completed in a
timely  matter,  the  Year  2000  issue  could  have a  material  impact  on the
Partnership's  operations.  The costs of these changes are being incurred by the


                                       8
<PAGE>

General  Partner or its affiliates.  Costs incurred by the  Partnership  will be
expensed as incurred  and are not  currently  anticipated  to be material to the
Partnership's  financial position or results of operations.  The General Partner
currently  does not have a contingency  plan,  but will continue to evaluate the
need for such plan as systems and programs are tested.

     The  Partnership's   customers  consist  of  lessees  and  borrowers.   The
Partnership  does  not have  exposure  to any  individual  customer  that  would
materially impact the Partnership  should the customer  experience a significant
Year 2000 problem.

     The  assessments of the risks and costs of the Year 2000 issue are based on
management's  best  estimates.  However,  there can be no  guarantee  that these
estimates will be achieved and the actual results could differ  materially  from
those estimates.


                                       9
<PAGE>



                   PHOENIX LEASING HIGH TECH/HIGH YIELD FUND,
                        A CALIFORNIA LIMITED PARTNERSHIP

                               September 30, 1998

                           Part II. Other Information
                                    -----------------


Item 1.       Legal Proceedings.
              -----------------

         On October 28, 1997, a Class Action Complaint was filed against Phoenix
Leasing  Incorporated,  Phoenix  Leasing  Associates,  II and III  LP.,  Phoenix
Securities  Inc.  and  Phoenix  American   Incorporated   (the  "Companies")  in
California  Superior Court for the County of Sacramento by eleven individuals on
behalf of investors in Phoenix Leasing Cash Distribution  Funds I through V (the
"Partnerships").  The  Companies  were served with the  Complaint on December 9,
1997. The Complaint  seeks  declaratory and other relief  including  accounting,
receivership,  imposition of a constructive  trust and judicial  dissolution and
winding up of the Partnerships,  and damages based on fraud, breach of fiduciary
duty and  breach  of  contract  by the  Companies  as  general  partners  of the
Partnerships.  Discovery has not commenced.  The Companies  intend to vigorously
defend the Complaint.

         Plaintiffs  severed  one cause of action  from the  Complaint,  a claim
related to the marketing and sale of CDF V, and  transferred  it to Marin County
Superior Court (the "Marin Action").  Plaintiffs  subsequently amended the Marin
Action on August 14, 1998. On October 23, 1998,  the Companies  filed a demurrer
to the Marin Action,  seeking its dismissal.  Discovery has not  commenced.  The
Companies intend to vigorously defend the Complaint.

Item 2.     Changes in Securities.  Inapplicable
            ---------------------

Item 3.     Defaults Upon Senior Securities.  Inapplicable
            -------------------------------

Item 4.     Submission of Matters to a Vote of Securities Holders.  Inapplicable
            -----------------------------------------------------

Item 5.     Other Information.  Inapplicable
            -----------------

Item 6.     Exhibits and Reports on 8-K:
            ---------------------------

            a)  Exhibits:

                (27)    Financial Data Schedule

            b)  Reports on 8-K:  None


                                       10
<PAGE>


                                   SIGNATURES


         Pursuant to the  requirements  of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                          PHOENIX HIGH TECH/HIGH YIELD FUND,
                                          ---------------------------------
                                          A CALIFORNIA LIMITED PARTNERSHIP
                                          --------------------------------
                                                      (Registrant)

      Date                      Title                           Signature
      ----                      -----                           ---------


November 11, 1998     Executive Vice President,            /S/ GARY W. MARTINEZ
-----------------     Chief Operating Officer              --------------------
                      and a Director of                    (Gary W. Martinez) 
                      Phoenix Leasing Incorporated 
                      General Partner              
                     


November 11, 1998     Chief Financial Officer,             /S/ HOWARD SOLOVEI
-----------------     Treasurer and a Director of          --------------------
                      Phoenix Leasing Incorporated         (Howard Solovei)
                      General Partner             
                     


November 11, 1998     Senior Vice President,               /S/ BRYANT J. TONG
-----------------     Financial Operations                 ------------------
                      (Principal Accounting Officer)       (Bryant J. Tong)
                      and a Director of              
                      Phoenix Leasing Incorporated   
                      General Partner                


                                       11