EX-99.(17)(G) 9 a2027167zex-99_17g.txt EXHIBIT 99(17)(G) DECEMBER 31, 1999 Chase Funds ANNUAL REPORT MONEY MARKET FUND SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND INTERMEDIATE TERM BOND FUND U.S. GOVERNMENT SECURITIES FUND INCOME FUND BALANCED FUND EQUITY INCOME FUND SMALL CAPITALIZATION FUND CORE EQUITY FUND EQUITY GROWTH FUND (C-465-01618) ANCF-2-12-99
---------------------------------------------------------- Contents ---------------------------------------------------------- Chairman's Letter 1 ---------------------------------------------------------- Chase Money Market Fund 2 Fund Commentary ---------------------------------------------------------- Chase Short-Intermediate Term U.S. Government Securities Fund 5 Fund Commentary ---------------------------------------------------------- Chase Intermediate Term Bond Fund 8 Fund Commentary ---------------------------------------------------------- Chase U.S. Government Securities Fund 11 Fund Commentary ---------------------------------------------------------- Chase Income Fund 14 Fund Commentary ---------------------------------------------------------- Chase Balanced Fund 17 Fund Commentary ---------------------------------------------------------- Chase Equity Income Fund 20 Fund Commentary ---------------------------------------------------------- Chase Small Capitalization Fund 23 Fund Commentary ---------------------------------------------------------- Chase Core Equity Fund 26 Fund Commentary ---------------------------------------------------------- Chase Equity Growth Fund 29 Fund Commentary ---------------------------------------------------------- Portfolios of Investments 32 ---------------------------------------------------------- Fund Financial Statements 52 ---------------------------------------------------------- Portfolio Financial Statements 83 ----------------------------------------------------------
Highlights - Bond markets struggled as the United States economy continued to grow sharply during the reporting year. Gross Domestic Product growth in the United States in 1999 was 4.2%. - Stocks ended the year on a strong note with technology issues, IPOs and large cap growth stocks leading the upward advance. - Inflation, while still well under control, inched up during the reporting year and the Federal Reserve began raising interest rates in June. NOT FDIC INSURED May lose value / No bank guarantee -------------------------------------------------------------------------------- CHASE FUNDS -------------------------------------------------------------------------------- Chairman's Letter January 20, 2000 Dear Fellow Shareholders: We are pleased to present this annual report for Chase Funds for the year ended December 31, 1999. In providing you with this information, we seek to assist you in fully understanding how your fund performed and the strategies your fund managers pursued within the context of the overall economic and market environment. Continued Strong US Economic Growth Tests "New Paradigm" Throughout the 1990s, the wonderful combination of strong economic growth, falling unemployment and low inflation has led to a growing belief in a "new paradigm." Under this theory, productivity and technological gains will allow the economy to grow at faster levels without sparking an inflationary spiral that causes the Federal Reserve to raise interest rates in an effort to cool the economy. Prior to the arrival of the "new paradigm," it was thought that GDP growth much above a 2.5% annual rate would inevitably become inflationary. However, the sizzling US economy began testing the upper limits of the "new paradigm" equation during the reporting year as Gross Domestic Product in 1999 grew by 4.2%. Although inflation remained relatively subdued, it did move higher over the reporting year and this, when combined with the very high growth in the US and the resumption of growth overseas, led to rising interest rates and a generally rough road to hoe for the bond market. Fed Shifts Policy in Early 1999 Early in 1999, it became apparent that a global economic recovery was underway. The global recovery, combined with 6% annual growth in the US in the 4th quarter of 1998 and record-low unemployment, led to bond market fears that the Fed would shift to a policy of raising short-term interest rates. This generally negative sentiment continued for the rest of the year as the Fed did indeed begin tightening, first on June 30, 1999 and then again on August 24 and November 16. In the view of many market participants, the Fed would have acted again in December were it not for Y2K concerns. Moving into 2000, the question among market participants is not whether the Fed will continue to raise rates, but rather by how much and for how long. Your portfolio management team rose to the occasion of 1999's challenging environment. While it's impossible to predict what markets will do, you can surely expect that all of us at Chase Funds will continue to do our best to deliver solid investments and help you reach your financial goals. We appreciate your continued trust and support. Sincerely yours, /s/ Sarah E. Jones Sarah E. Jones Chairman 1 -------------------------------------------------------------------------------- CHASE MONEY MARKET FUND As of December 31, 1999 (Unaudited) -------------------------------------------------------------------------------- How the Fund Performed Chase Money Market Fund had a total return of 4.89% (Premier Shares) for the year ended December 31, 1999. How the Fund Was Managed The Fund began the with an average maturity slightly below that of the index and, as interest rates climbed in the first half of the year, the management team increased average maturity to a roughly neutral position to take advantage of higher-yielding paper. Given the Fund's strong focus on quality, this longer maturity was achieved by purchasing high-grade corporate notes. In the third quarter, the management team took advantage of the wide spread between fixed and floating rate notes by allocating an additional 20% of assets to floating rate notes, bringing total exposure to these securities to 40%. Although the Fund ended September with an average maturity longer than its index, the high exposure to floating rate notes gave the portfolio an excellent risk/reward profile. During the fourth quarter, the management team's decision to shorten average maturity in light of the continued rise in interest rates contributed positively to performance. Where the Fund May Be Headed Despite the U.S. economy's robust showing in recent months and a near-term outlook that calls for potentially more of the same, the management team believes that the economy will begin to slow as the year progresses. Given this backdrop, the team intends to increase the Fund's average maturity in the coming months to enhance income. As always, the focus will be on maintaining a high-quality, diversified investment approach that seeks capital preservation and attractive yields to shareholders. 2 CHASE MONEY MARKET FUND As of December 31, 1999 (Unaudited) Percentage of Total Portfolio Investments [TABULAR REPRESENTATION OF PIE CHART] Corporate Notes & Bonds (49.4%) Commercial Paper (31.2%) Certificates of Deposit (11.6%) U.S. Government Agency Securities (3.2%) Cash Equivalent and Short-Term Paper (2.9%) State and Municipal Obligations (1.7%)
3 CHASE MONEY MARKET FUND As of December 31, 1999 (Unaudited) Maturity Schedule 1-14 days 27.03% 15-30 days 5.81% 31-60 days 32.94% 61-90 days 18.17% 91-180 days 10.77% 181-270 days 2.05% 270+ days 3.23%
7-Day SEC Yield Premier Shares 5.41% Investor Shares 5.31%
Performance information represents past performance and is not intended to indicate or predict future results. Yields will vary and you may experience gains or losses when you sell your shares. The Fund is currently waiving certain fees. The voluntary waiver may be modified or terminated at any time, which would reduce performance. Chase Money Market Fund is the successor to the AVESTA Trust Money Market Fund. Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part of the conversion, the Fund transferred all of its assets to Chase Money Market Fund, a new investment portfolio of MFIT. The Chase Money Market Fund unlike the AVESTA Money Market Fund, is subject to certain diversification, distribution and other requirements imposed under the Internal Revenue Code, which may impact performance. Premier Shares commenced on 3/29/88, carry a $1 million minimum initial investment and carry no sales charge. Investor Shares commenced on 11/10/98 and have a minimum initial investment of $2,500. Please note internal expenses are greater for the Investor Shares class. Performance measurements for the Investor Shares prior to 11/9/98 are based on the predecessor Premier Shares class and do not include Investor Share class expenses. Yield information is net of expenses and fees, and reflects reimbursement and waiver of certain expenses and fees. An investment in the Fund isn't a bank deposit and it isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. The Fund is AAAm rated by Standard and Poor's. This rating is historical and is based upon the fund's credit quality, market exposure and management. It signifies that the fund's safety is excellent and that it has a superior capacity to maintain a $1.00 net asset value per share. 4 -------------------------------------------------------------------------------- CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND As of December 31, 1999 (Unaudited) -------------------------------------------------------------------------------- How the Fund Performed Chase Short-Intermediate Term U.S. Government Securities Fund had a total return of .72% (Premier Shares) for the year ended December 31, 1999. This compares to .64% for the Lipper Short-Intermediate US Government Funds Index and .49% for the Lehman Intermediate Government Index. How the Fund Was Managed With interest rates rising throughout the year, 1999 was a difficult environment for all types of US fixed income securities. Compounding the difficulties was high issuance of non-Treasury "spread" sector securities as government agency and corporate issuers sought to fund their debt before higher rates made it unattractive. In the first half of the year, the management team's strategy was to stay relatively close to its index and capture yield where possible without taking on excessive risk. After beginning the year with a neutral maturity structure, the management team cut duration in February before becoming duration neutral in May and remaining so until the end of June. The Fund maintained a slightly overweight position in mortgage-backed securities in the first quarter, which proved beneficial as "spread" sectors outperformed Treasuries. In the second quarter, however, the Fund began to favor Treasuries over mortgages, which was helpful to performance in June as the prices of mortgage-backed securities slipped. In the third quarter, the Fund's exposure to federal agency securities was increased significantly to take advantage of further widening in yield spreads due to new issuance. The Fund underwent a change of management in the fourth quarter. When the new management team took over, the Fund had a longer-than-benchmark duration and was underweight in mortgage backed securities versus its Lipper peer group. In an effort to improve diversification, increase dividend yield to shareholders and make the portfolio reflective of its interest rate views, the management team took several steps. First, it allowed the Fund's duration (and hence its sensitivity to changes in interest rates) to shorten dramatically, making an especially significant strategic reduction in December. Next, the Fund's exposure to short-term mortgages and government agencies was increased while exposure to two-year Treasury bills was cut. Each of these moves proved beneficial in the last two months of the year as interest rates rose sharply at the short end of the yield curve and non-Treasury "spread" sectors outperformed. Where the Fund May Be Headed Moving forward, the management team believes that above-trend economic growth, tight labor markets and increasing inflation will drive long-term rates higher and cause the Federal Reserve to hike short-term rates. As such, it is expected that the Fund will maintain a slightly short of benchmark duration and emphasize government agency and premium (not pass-through) mortgage-backed securities, which tend to outperform in a rising rate environment. 5 CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND As of December 31, 1999 (Unaudited) Percentage of Total Portfolio Investments [TABULAR REPRESENTATION OF PIE CHART] U.S. Government Agency Securities (47.7%) U.S. Treasury Securities (36.4%) Mortgage-Backed Pass Through Securities (15.9%)
6 CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND As of December 31, 1999 (Unaudited) Average Annual Total Returns
Since Inception 1 Year 3 Years 5 Years (4/1/93) Premier Shares 0.72% 4.74% 5.75% 4.43% Investor Shares 0.48% 4.61% 5.67% 4.37%
Life of Fund Performance* [TABULAR REPRESENTATION OF LINE CHART]
Chase Short-Intermediate Lipper Term Short-Intermediate Lehman Lehman U.S. Government U.S. Gov't. Intermediate 1-3 Year Securities Funds Gov't. Gov't. Fund Index Index Index 4/93 10000 10000 10000 10000 12/93 10240 10350 10428 10317 12/94 10129 10190 10246 10368 12/95 11348 11439 11724 11493 12/96 11659 11855 12199 12078 12/97 12388 12674 13121 12881 12/98 13299 13552 14232 13858 12/99 13408 13663 14304 14269
*Source: Lipper Analytical Services Past performance is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The Fund is currently waiving certain fees. The voluntary waiver may be modified or terminated at any time, which would reduce performance. This chart represents the comparative performance for $10,000 invested in Premier Shares of Chase Short-Intermediate Term U.S. Government Securities Fund, the Lehman 1-3 Year Government Index, the Lehman Intermediate Government Index and Lipper Short-Intermediate Term U.S. Government Funds Index from April 1, 1993 to December 31, 1999. The performance of the Fund assumes the reinvestment of all dividends and capital gains and does not include a sales charge. The performance of the indices does not include a sales charge and has been adjusted to reflect the reinvestment of all dividends and capital gains on the securities included in the benchmark. Premier Shares carry a $1 million minimum initial investment and carry no sales charge. Investor Shares commenced on 11/10/98 and carry a minimum initial investment of $2,500. Please note internal expenses are greater for the Investor Shares class. Performance measurements for the Investor Shares prior to 11/10/98 are based on the predecessor Premier Shares class and do not include Investor Share class expenses. Chase Short-Intermediate Term U.S. Government Securities Fund is the successor to the AVESTA Trust Short-Intermediate Term U.S. Government Securities Fund. Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part of the conversion, the Fund transferred all of its assets to Chase Short-Intermediate Term U.S. Government Securities Fund, a new investment portfolio of MFIT. Chase Short-Intermediate Term U.S. Government Securities Fund, unlike the AVESTA Trust Short-Intermediate Term U.S. Government Securities Fund, is subject to certain diversification, distribution and other requirements imposed under the Internal Revenue Code, which may impact performance. The Lehman 1-3 Year Government Index is composed of bonds covered by the Government Bond Index with maturities of 1-3 years. The index is unmanaged and reflect the reinvestment of dividends. An individual cannot invest directly in an index. The Lipper Short-Intermediate Term U.S. Government Fund Index represents performance of the 30 largest short-intermediate term debt funds. Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge. An individual cannot invest directly in an index. The Lehman Intermediate Government Index consists of U.S. agency and Treasury securities with maturities of one to 10 years. An individual cannot invest directly in an index. 7 -------------------------------------------------------------------------------- CHASE INTERMEDIATE TERM BOND FUND As of December 31, 1999 (Unaudited) -------------------------------------------------------------------------------- How the Fund Performed Chase Intermediate Term Bond Fund had a total return of -1.11% (Premier Shares) for the year ended December 31, 1999. This compares to -1.31% for the Lipper Intermediate Grade Debt Funds Index and -.82% for the Lehman Aggregate Index. How the Fund Was Managed With interest rates rising throughout the year, 1999 was a difficult environment for all types of US fixed income securities. Compounding the difficulties was high issuance of non-Treasury "spread" sector securities as government agency and corporate issuers sought to fund their debt before higher rates made it unattractive. Concerned that fixed income markets had entered a corrective phase of consolidation, the management team became defensive and cut duration in February. However, after allowing duration to rise in March, the management team continued to extend until duration became relatively neutral in May. The Fund added corporate and mortgage-backed securities in the first quarter of the year and added Federal agency paper in the second quarter when large issuance led to high yields on these issues relative to Treasuries. In the third quarter, the Fund was able to buy Federal agency paper at what turned out to be the most beneficial point of the year and adding to its holdings of corporate securities, which held up relatively well during a poor quarter for corporates due to the management team's focus on maturities of less than three years. The Fund underwent a change of management in the fourth quarter. When the new management team took over, the Fund had a longer-than-benchmark duration and was underweight in mortgage-backed securities. In an effort to improve diversification, increase dividend yield to shareholders and make the portfolio reflective of its interest rate views, the management team took several steps. First, it allowed the Fund's duration (and hence its sensitivity to changes in interest rates) to shorten dramatically, making an especially significant strategic reduction in December. Next, the Fund's exposure to mortgages was increased to become neutral relative to its peer group while its corporate holdings were raised to an overweight position, with the latter move being made with the first quarter of 2000 in mind. Each of these moves proved beneficial in the last two months of 1999 as interest rates rose and non-Treasury "spread" sectors outperformed. Where the Fund May Be Headed Moving forward, the management team believes that above-trend economic growth, tight labor markets and increasing inflation will drive long-term rates higher and cause the Federal Reserve to hike short-term rates. As such, it is expected that the Fund will maintain a slightly short of benchmark duration and an overweight position in the non-Treasury "spread" sectors, which tend to outperform in a rising rate environment. 8 CHASE INTERMEDIATE TERM BOND FUND As of December 31, 1999 (Unaudited) Percentage of Total Portfolio Investments [TABULAR REPRESENTATION OF PIE CHART] Corporate Notes & Bonds (38.7%) Mortgage-Backed Pass Through Securities (29.9%) U.S. Government Agency Securities (25.7%) U.S. Treasury Securities (5.7%)
9 CHASE INTERMEDIATE TERM BOND FUND As of December 31, 1999 (Unaudited) Average Annual Total Returns
Since Inception 1 Year 3 Years 5 Years (10/3/94) Premier Shares -1.11% 4.51% 6.32% 6.00% Investor Shares -1.36% 4.41% 6.26% 5.94%
Life of Fund Performance* [TABULAR REPRESENTATION OF LINE CHART]
Lipper Chase Intermediate Lehman Intermediate Grade Lehman Intermediate Term Bond Debt Funds Aggregate Gov't./Corp Fund Index Index Index 10/94 10000 10000 10000 10000 12/94 9990 10010 10038 9989 12/95 11668 11724 11892 11518 12/96 11889 12126 12322 11985 12/97 12750 13191 13514 12928 12/98 13722 14230 14686 14016 12/99 13584 14091 14563 14070
*Source: Lipper Analytical Services Past performance is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The Fund is currently waiving certain fees. The voluntary waiver may be modified or terminated at any time, which would reduce performance. This chart represents the comparative performance for $10,000 invested in Premier Shares of Chase Intermediate Term Bond Fund, the Lehman Intermediate Gov't./Corp. Index, the Lehman Aggregate Index and the Lipper Intermediate Grade Debt Funds Index from October 31, 1994 to December 31, 1999. The performance of the Fund assumes the reinvestment of all dividends and capital gains and does not include a sales charge. The performance of the indices does not include a sales charge and has been adjusted to reflect the reinvestment of all dividends and capital gains on the securities included in the benchmark. Premier Shares carry a $1 million minimum initial investment and carry no sales charge. Investor Shares commenced on 11/10/98 and have a minimum initial investment of $2,500. Please note internal expenses are greater for the Investor Shares class. Performance measurements for the Investor Shares prior to 11/10/98 are based on the predecessor Premier Shares and do not include Investor Share expenses. Chase Intermediate Term Bond Fund is the successor to the AVESTA Trust Intermediate Term Bond Fund. Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part of the conversion, the Fund transferred all of its assets to Chase Intermediate Term Bond Fund, a new investment portfolio of MFIT. Chase Intermediate Term Bond Fund, unlike the AVESTA Trust Intermediate Term Bond Fund, is subject to certain diversification, distribution and other requirements imposed under the Internal Revenue Code, which may impact performance. The Lipper Intermediate Grade Debt Funds Index represents performance of the largest 30 intermediate investment grade debt funds. Each of these funds invests the majority of its assets in investment grade debt issues (rated in top four grades) with dollar-weighted average maturities of five to 10 years. Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge. An individual cannot invest directly in an index. The Lehman Aggregate Index is composed of the Lehman Government/Corporate Bond Index and the Mortgage-Backed Securities Index and includes Treasury issues, agency issues, corporate bond issues and mortgage-backed securities. The index is unmanaged and reflects the reinvestment of dividends. An individual cannot invest directly in an index. The Lehman Intermediate Gov't/Corp. Index includes the government and corporate bond indices, with maturities of one to 10 years, including U.S. governmental treasury and agency securities, corporate and Yankee bonds. An individual cannot invest directly in an index. 10 -------------------------------------------------------------------------------- CHASE U.S. GOVERNMENT SECURITIES FUND As of December 31, 1999 (Unaudited) -------------------------------------------------------------------------------- How the Fund Performed Chase U.S. Government Securities Fund had a total return of -2.55% (Premier Shares) for the year ended December 31, 1999. This compares to -3.01% for the Lipper General U.S. Government Funds Index and -2.23% for the Lehman Government Index. How the Fund Was Managed With interest rates rising throughout the year, 1999 was a difficult environment for all types of US fixed income securities. Compounding the difficulties was high issuance of non-Treasury "spread" sector securities as government agency and corporate issuers sought to fund their debt before higher rates made it unattractive. In the first half of the year, concerned that fixed income markets had entered a corrective phase of consolidation, the management team's strategy was to stay relatively close to its index and capture yield where possible without taking on excessive risk. Consistent with this strategy, the Fund added mortgage-backed securities in the first quarter of the year and added Federal agency paper in the second quarter when large issuance led to high yields on these issues relative to Treasuries. In the third quarter, the Fund continued to modestly add to its holdings of federal agency and mortgage-backed securities to take advantage of further widening in yield spreads due to new issuance by government agencies. The Fund underwent a change of management in the fourth quarter. When the new team took over, the Fund had a longer-than-benchmark duration and was underweight in mortgage-backed securities versus its Lipper peer group. In an effort to improve diversification, increase dividend yield to shareholders and make the portfolio reflective of its interest rate views, the management team took several steps. First, it allowed the Fund's duration (and hence its sensitivity to changes in interest rates) to shorten dramatically, making an especially significant strategic reduction in December. Next, the Fund's exposure to mortgages was increased while exposure to Treasury securities was cut. Each of these moves proved beneficial in the final two months of the year as interest rates rose and non-Treasury "spread" sectors outperformed. Where the Fund May Be Headed Moving forward, the management team believes that above-trend economic growth, tight labor markets and increasing inflation will drive long-term rates higher and cause the Federal Reserve to hike short-term rates. As such, it is expected that the Fund will maintain a slightly short of benchmark duration and an overweight position in mortgage-backed securities, which tend to outperform in a rising rate environment. 11 CHASE U.S. GOVERNMENT SECURITIES FUND As of December 31, 1999 (Unaudited) Percentage of Total Portfolio Investments [PIE CHART PLOT POINTS] Mortgage-Backed Pass Through Securities (41.4%) U.S. Treasury Securities (33.9%) U.S. Government Agency Securities (24.7%) [END PLOT POINTS] 12 CHASE U.S. GOVERNMENT SECURITIES FUND As of December 31, 1999 (Unaudited) Average Annual Total Returns
Since Inception 1 Year 3 Years 5 Years (4/1/93) Premier Shares -2.55% 5.27% 8.28% 6.07% Investor Shares -2.79% 5.18% 8.22% 6.03%
Life of Fund Performance* [LINE CHART PLOT POINTS]
Chase U.S. Government Lipper General U.S. Lehman Securities Fund Gov't. Funds Index Gov't. Index 4/93 10000 10000 10000 12/93 10910 10462 10587 12/94 9999 9966 10229 12/95 13010 11654 12106 12/96 12760 11905 12440 12/97 13981 12991 13632 12/98 15279 14010 14975 12/99 14900 13637 14849
[END PLOT POINTS] *Source: Lipper Analytical Services Past performance is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The Fund is currently waiving certain fees. The voluntary waiver may be modified or terminated at any time, which would reduce performance. This chart represents the comparative performance for $10,000 invested in the Premier Shares of Chase U.S. Government Securities Fund, the Lehman Government Index, and Lipper General U.S. Government Funds Index from April 1, 1993 to December 31, 1999. The performance of the Fund assumes the reinvestment of all dividends and capital gains and does not include a sales charge. The performance of the indices does not include a sales charge and has been adjusted to reflect the reinvestment of all dividends and capital gains on the securities included in the benchmark. Premier Shares carry a $1 million minimum initial investment and carry no sales charge. Investor Shares commenced on 11/10/98 and have a minimum initial investment of $2,500. Please note internal expenses are greater for the Investor Shares class. Performance measurements for the Investor Shares prior to 11/10/98 are based on the predecessor Premier Shares class and do not include Investor Share class expenses. Chase U.S. Government Securities Fund is the successor to the AVESTA Trust U.S. Government Securities Fund. Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part of the conversion, the Fund transferred all of its assets to Chase U.S. Government Securities Fund, a new investment portfolio of MFIT. Chase U.S. Government Securities Fund, unlike the AVESTA U.S. Government Securities Fund, is subject to certain diversification, distribution and other requirements imposed under the Internal Revenue Code, which may impact performance. Lehman Government Index is composed of the Lehman Treasury Bond Index and the Lehman Agency Bond Index and includes Treasury bonds and debt issued by the U.S. Government and its agencies. The index is unmanaged and includes the reinvestment of dividends. An individual cannot invest directly in an index. The Lipper General U.S. Government Funds Index represents performance of the 30 largest U.S. government securities funds. Lipper is an independent mutual fund performance monitor whose results do not reflect a sales charge. An individual cannot invest directly in an index. 13 -------------------------------------------------------------------------------- CHASE INCOME FUND As of December 31, 1999 (Unaudited) -------------------------------------------------------------------------------- How the Fund Performed Chase Income Fund had a total return of -2.78% (Premier Shares) for the year ended December 31, 1999. This compares to -2.58% for the Lipper Corporate Debt A Rated Fund Index and -2.15% for the Lehman Government/Corporate Index. How the Fund Was Managed With interest rates rising throughout the year, 1999 was a difficult environment for all types of US fixed income securities. Compounding the difficulties was high issuance of non-Treasury "spread" sector securities as government agency and corporate issuers sought to fund their debt before higher rates made it unattractive. In the first half of the year, concerned that fixed income markets had entered a corrective phase of consolidation, the management team's strategy was to stay relatively close to its index and capture yield where possible without taking on excessive risk. Consistent with this strategy, the Fund added corporate and mortgage-backed securities in the first quarter of the year and added Federal agency paper in the second quarter when large issuance led to high yields on these issues relative to Treasuries. In the third quarter, the Fund continued to modestly add to its holdings of non-Treasury "spread" sectors to take advantage of further widening in yield spreads due to new issuance by government agencies and corporations. The Fund underwent a change of management in the fourth quarter. When the new team took over, the Fund had a longer-than-benchmark duration, was underweight in mortgage-backed securities and held no asset-backed or commercial mortgage-backed securities. In an effort to improve diversification, increase dividend yield to shareholders and make the portfolio reflective of its interest rate views, the management team took several steps. First, it allowed the Fund's duration (and hence its sensitivity to changes in interest rates) to shorten dramatically, making an especially significant strategic reduction in December. Next, the Fund's exposure to mortgages was increased and asset-backed securities were added. Each of these moves proved beneficial in the final two months of the year as interest rates rose and non-Treasury "spread" sectors outperformed. Where the Fund May Be Headed Moving forward, the management team believes that above-trend economic growth, tight labor markets and increasing inflation will drive long-term rates higher and cause the Federal Reserve to hike short-term rates. As such, it is expected that the Fund will maintain a slightly short of benchmark duration and an overweight position in the non-Treasury "spread" sectors, which tend to outperform in a rising rate environment. 14 CHASE INCOME FUND As of December 31, 1999 (Unaudited) Percentage of Total Portfolio Investments [PIE CHART PLOT POINTS] U.S. Government Agency Securities (44.7%) Mortgage-Backed Securities (22.5%) Corporate Notes & Bonds (21.3%) U.S. Treasury Securities (8.9%) Asset Backed Securities (1.8%) Foreign Government Securities (0.8%) [END PLOT POINTS] 15 CHASE INCOME FUND As of December 31, 1999 (Unaudited) Average Annual Total Returns
1 Year 3 Years 5 Years 10 Years Premier Shares -2.78% 4.99% 6.89% 6.47% Investor Shares -2.92% 4.91% 6.84% 6.45%
10 Year Performance* [LINE CHART PLOT POINTS]
Chase Income Lipper Corporate Debt A Lehman Gov't./Corp. Index Rated Fund Index Index 12/89 10000 10000 10000 12/90 10654 10665 10829 12/91 12119 12528 12576 12/92 12746 13471 13528 12/93 14044 15074 15024 12/94 13416 14332 14497 12/95 15874 17171 17286 12/96 16178 17649 17788 12/97 17590 19345 19523 12/98 19257 20760 21371 12/9 18742 20337 20912
[END PLOT POINTS] *Source: Lipper Analytical Services Past performance is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The Fund is currently waiving certain fees. The voluntary waiver may be modified or terminated at any time, which would reduce performance. This chart represents the comparative performance for $10,000 invested in Premier Shares of Chase Income Fund, the Lehman Government/Corporate Index and the Lipper Corporate Debt A Rated Funds Index from December 31, 1989 to December 31, 1999. The performance of the Fund assumes the reinvestment of all dividends and capital gains and does not include a sales charge. The performance of the indices does not include a sales charge and has been adjusted to reflect the reinvestment of all dividends and capital gains on the securities included in the benchmark. Premier Shares carry a $1 million minimum initial investment and carry no sales charge. Investor Shares commenced on 11/10/98 and have a minimum initial investment of $2,500. Please note internal expenses are greater for the Investor Shares class. Performance measurements for the Investor Shares prior to 11/10/98 are based on the predecessor Premier Shares class and do not include Investor Share class expenses. Chase Income Fund is the successor to the AVESTA Trust Income Fund. Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part of the conversion, the Fund transferred all of its assets to Chase Income Fund, a new investment portfolio of MFIT. Chase Income Fund, unlike the AVESTA Income Fund, is subject to certain diversification, distribution and other requirements imposed under the Internal Revenue Code, which may impact performance. The Lipper Corporate Debt A Rated Funds Index represents performance of the largest 30 A rated corporate debt funds. Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge. An individual cannot invest directly in an index. The Lehman Govt/Corp. Index includes the Government and Corporate Bond Indices, including U.S. Government Treasury and agency securities, corporate and yankee bonds. The index is unmanaged and reflects the reinvestment of dividends. An individual cannot invest directly in an index. 16 -------------------------------------------------------------------------------- CHASE BALANCED FUND As of December 31, 1999 (Unaudited) -------------------------------------------------------------------------------- How the Fund Performed Chase Balanced Fund, which seeks to provide a balance of current income and growth of capital, provided a total return of 14.23% (Premier Shares) compared to the Lipper Balanced Funds Index return of 8.98% and the Lehman Gov't./Corp. Index return of -2.15% for the one year period ended December 31, 1999. How the Fund Was Managed The Fund's equity portfolio performed well during a year ideally-suited to its style of buying high quality, large-cap growth stocks with superior earnings prospects. The fixed income portfolio lost value, however, as U.S. Treasury yields rose in the face of continuing robust economic growth and fears of higher inflation. Most of the equity portfolio's gain was recorded in the fourth quarter. Technology stocks rallied as the market focused on areas judged likely to profit from the Internet economy. Expectations of strong growth in demand for semiconductors, cell phones and communications equipment boosted many names. Holdings like Microsoft, Cisco Systems and Nortel Networks all performed well. But gains were not restricted to technology. The Fund benefited from an investment in Omnicom, the advertising and marketing multinational, where growth in Internet dot.com advertising should boost profits. Stock prices of a number of 'old media' companies--like AT&T, Liberty Media and Time Warner--also rose in anticipation of convergence with 'new media.' Strong stock picking even enabled the equity portfolio to perform well in the difficult third quarter, when inflation worries trapped much of the market in a trading range. Technology stocks and a small number of well-managed blue chips continued to make new highs. The Fund benefited from holdings in companies like Microsoft, Intel, Dell Computer, GE, and Procter & Gamble. The fixed income portfolio was not so fortunate. Although the portfolio invested in the short maturity securities least vulnerable to rising inflation, it was unable to avoid falling bond prices. Inflation fears intensified in the third and fourth quarters. The Federal Open Markets Committee raised rates three times in the year, and the yield on the benchmark 30-year U.S. Treasury rose from 5.1% to 6.5% in the course of the year. Where the Fund May Be Headed \Looking ahead, equity market rallies may no longer focus to such an extent on technology stocks, but may include a broader selection of names. The outlook for fixed income is negative due to stronger-than-trend economic growth and the likelihood of further rate rises. The Fund will benefit, however, from its balanced approach, and its large-cap growth style. 17 CHASE BALANCED FUND As of December 31, 1999 (Unaudited) Percentage of Total Portfolio Investments [PIE CHART PLOT POINTS] Transportation (0.3%) Technology (21.2%) Corporate Notes & Bonds (19.8%) U.S. Treasury Securities (15.9%) Health Care (8.6%) Consumer Cyclicals (8.2%) Cash Equuivalent & Short-Term Paper (6.5%) Capital Goods (5.2%) Utilities (5.1%) U.S. Government Agency Securities (4.3%) Financial (3.5%) Consumer Staples (1.4%) [END PLOT POINTS] Top Ten Equity Holdings of the Portfolio 1. Microsoft Corp. (3.3%) Develops, manufactures, licenses and supports computer software products. 2. General Electric Co. (2.7%) A diversified manufacturing, technology and services company. Operations include appliance manufacturing, capital services, information services, and electrical distribution. 3. EMC Corp. (2.3%) Provides enterprise storage systems, software, networks and services. 4. Intel Corp. (2.2%) Manufactures micro and personal computers. The Company also supplies mainframe computers and other information processing equipment, software and networking products and peripheral equipment. 5. Wal-Mart Stores, Inc. (2.1%) The "Wal-Mart" Company's discount stores and "Supercenters" offer merchandise such as apparel, housewares, small appliances, electronics, hardware, and other products. 6. Applied Materials, Inc. (2.0%) Develops, manufactures, markets and services semiconductor wafer fabrication equipment and related spare parts for the worldwide semiconductor industry. 7. Amgen, Inc. (1.9%) Discovers, develops, manufactures, and markets human therapeutics based on cellular and molecular biology. Focuses its research on secreted protein and small molecule therapeutics. 8. America Online, Inc. (1.8%) Provides interactive communications and services through its America Online and Compuserve worldwide Internet online services. 9. Novellus Systems, Inc. (1.8%) Manufactures, markets and services advanced automated wafer fabrication systems for the deposition of thin films. 10. Cisco Systems, Inc. (1.8%) Supplies data networking products to the corporate enterprise and public wide area service provider markets. Top 10 equity holdings comprised 21.9% of the Portfolio's market value of investments. Portfolio holdings are subject to change at any time. 18 CHASE BALANCED FUND As of December 31, 1999 (Unaudited) Average Annual Total Returns
1 Year 3 Years 5 Years 10 Year Premier Shares 14.23% 20.92% 19.51% 12.84% Investor Shares 13.94% 20.78% 19.42% 12.80%
10 Year Performance* [LINE CHART PLOT POINTS]
Chase Balanced Lipper Balanced Lehman Govt./ S&P 500 Fund Funds Index Corp. Index Index 12/89 10000 10000 10000 10000 12/90 10136 10066 10828 9690 12/91 12584 12665 12575 12642 12/92 13256 13610 13528 13605 12/93 14048 15237 15020 14976 12/94 13730 14925 14493 15174 12/95 17001 18639 17282 20876 12/96 18929 21072 17784 25669 12/97 23407 25349 19519 34233 12/98 29291 29173 21368 44016 12/99 33464 31792 20909 53278
[END PLOT POINTS] *Source: Lipper Analytical Services, Inc. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The Fund is currently waiving certain fees. The voluntary waiver may be modified or terminated at any time, which would reduce performance. This chart represents the comparative performance for $10,000 invested in Premier Shares of Chase Balanced Fund, the Lehman Government/Corporate Index, the Standard & Poor's 500 Index and the Lipper Balanced Funds Index from December 31, 1989 to December 31, 1999. The performance of the Fund assumes the reinvestment of all dividends and capital gains and does not include a sales charge. The performance of the indices does not include a sales charge and has been adjusted to reflect the reinvestment of all dividends and capital gains on the securities included in the benchmark. Premier Shares carry a $1 million minimum initial investment and carry no sales charge. Investor Shares were introduced on 10/16/98 and have a minimum initial investment of $2,500. Please note internal expenses are greater for the Investor Shares class. Performance measurements for the Investor Shares prior to 10/16/98 are based on the predecessor Premier Shares class and do not include Investor Share class expenses. Chase Balanced Fund is the successor to the AVESTA Trust-Balanced Fund. Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part of the conversion, the Fund transferred all of its assets to Chase Balanced Fund, a new investment portfolio of MFIT. Chase Balanced Fund, unlike the AVESTA Trust-Balanced Fund, is subject to certain diversification, distribution and other requirements imposed under the Internal Revenue Code, which may impact performance. The Lipper Balanced Funds Index represents performance of the largest 30 balanced funds. Each of these funds invests in a portfolio of stocks and bonds. Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge. An individual cannot invest directly in an index. The Standard and Poor's 500 Index is an unmanaged broad-based index that replicates the U.S. stock markets. It includes 500 widely held common stocks. Total return figures represent the reinvestment of dividends. An individual cannot invest directly in an index. The Lehman Government/Corporate Index includes the Government and Corporate Bond Indices, including the U.S. Government Treasury and agency securities, corporate and yankee bonds. The index is unmanaged and reflects the reinvestment of dividends. An individual cannot invest directly in an index. 19 -------------------------------------------------------------------------------- CHASE EQUITY INCOME FUND As of December 31, 1999 (Unaudited) -------------------------------------------------------------------------------- How the Fund Performed Chase Equity Income Fund, which seeks to provide capital appreciation and current income, generated a total return of 13.06% (Premier Shares) compared to the Lipper Equity Income Funds Index return of 4.19% and the Lipper Large Cap Value Index return of 10.78% for the one year period ended December 31, 1999. How the Fund Was Managed High-quality growth stocks drove the Fund's performance during the year. As befits a defensive portfolio that seeks to earn a current income in excess of the S&P 500 Index, the Fund was not invested in some of the technology companies that have yet to pay dividends, and so did not gain the full benefit from the year-end rally fueled by euphoria concerning the Internet economy. Arguably, though, its gains should prove reasonably resilient to any future correction. During the all-important fourth quarter, the Fund rose 7.9%. While this was less than the broad market, as defined by the S&P 500 Index, the stocks that fueled the rise were high quality names. The top five contributors to performance were: GE; Motorola; Microsoft, which bounced back following its anti-trust trial; Wal-Mart; and Citigroup. All are proven growth stocks, with experienced managements that have met earnings expectations quarter after quarter. Financials as a whole performed well for the Fund in the fourth quarter following the repeal of the Glass-Steagall Act, which was introduced to prevent investment banks and commercial banks from merging. In addition to Citigroup, American International Group made a significant contribution. The Fund illustrated its defensive credentials in the third quarter, when interest rate and inflation fears caused much of the equity market to become trapped in a trading range. The Fund outperformed the broad market indices for the quarter. Over the course of the year, the Fund's performance ranked well within its equity-income peer group. However, its income-generating objective will always limit participation in rallies such as that which we experienced at the end of this past year. Where the Fund May Be Headed The Fund will continue to be run in a conservative fashion intended to cushion the impact of market volatility. It will invest in well-managed companies with diversified businesses that offer some protection from economic uncertainty. The intention is to create a portfolio of stocks with a roughly 85% exposure to the S&P 500 Index. In other words, the Fund should capture at least 85% of any rise, but no more than 85% of any fall. 20 CHASE EQUITY INCOME FUND As of December 31, 1999 (Unaudited) Percentage of Total Portfolio Investments [PIE CHART PLOT POINTS] Transporation (0.9%) Technology (19.7%) Financial (16.2%) Health Care (10.7%) Utilities (10.1%) Consumer Cyclicals (9.9%) Energy (9.2%) Cash Equivalent & Short-Term Paper (8.6%) Capital Goods (6.5%) Consumer Staples (5.1%) Basic Materials (3.1%) [END PLOT POINTS] Top Ten Equity Holdings of the Portfolio 1. General Electric Co. (4.2%) A diversified manufacturing, technology and services company. Operations include appliance manufacturing, capital services, information services, and electrical distribution. 2. Microsoft Corp. (3.7%) Develops, manufactures, licenses and supports computer software products. 3. International Business Machines Corp. (3.3%) Manufactures micro and personal computers. The Company also supplies mainframe computers and other information processing equipment, software and networking products and peripheral equipment. 4. American International Group (3.1%) Provides a variety of insurance and financial services in the U.S. and internationally. The Company writes property, casualty, marine, life, and financial services insurance. 5. Citigroup, Inc. (2.9%) A diversified financial services holding company that provides investment services, including asset management, consumer finance ser- vices, property and casualty insurance services, and life insurance services. 6. Lucent Technologies, Inc. (2.9%) Designs, develops, manufactures, and distributes communications systems, software, and products worldwide. 7. Wal-Mart Stores, Inc. (2.6%) The "Wal-Mart" Company's discount stores and Supercenters" offer merchandise such as apparel, housewares, small appliances, electronics, hardware, and other products. 8. Intel Corp. (2.5%) Manufactures micro and personal computers. The Company also supplies mainframe computers and other information processing equipment, software and networking products and peripheral equipment. 9. Texas Instruments, Inc. (2.5%) Provides semiconductor products, as well as designs and supplies digital processing and analog technologies. 10. Procter & Gamble Co. (2.4%) Manufactures and markets consumer products for laundry and cleaning, paper, beauty care, food, beverages, and health care. Top 10 equity holdings comprised 30.1% of the Portfolio's market value of investments. Portfolio holdings are subject to change at any time. 21 CHASE EQUITY INCOME FUND As of December 31, 1999 (Unaudited) Average Annual Total Returns
1 Year 3 Years 5 Years 10 Years Premier Shares 13.06% 23.20% 24.13% 14.70% Investor Shares 12.70% 23.04% 24.03% 14.66%
10 Year Performance* [LINE CHART PLOT POINTS]
Chase Equity Lipper Equity Inome Lipper Large Cap S&P 500 Income Fund Funds Index Value Index Index 12/89 10000 10000 10000 10000 12/90 9558 9489 9595 9690 12/91 11665 12020 12533 12642 12/92 12324 13191 13618 13605 12/93 13841 15149 15424 14976 12/94 13378 15011 15452 15174 12/95 17886 19488 20589 20876 12/96 21084 22991 24926 25669 12/97 27631 29234 32024 34233 12/98 34869 32677 37865 44016 12/99 39422 34045 41947 53278
[END PLOT POINTS] *Source: Lipper Analytical Services, Inc. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The Fund is currently waiving certain fees. The voluntary waiver may be modified or terminated at any time, which would reduce performance. This chart represents the comparative performance of $10,000 invested in Premier Shares of Chase Equity Income, the Standard & Poor's 500 Index and the Lipper Equity Income Funds Index from December 31, 1989 to December 31, 1999. The performance of the Fund assumes the reinvestment of all dividends and capital gains and does not include a sales charge. The performance of the indices does not include a sales charge and has been adjusted to reflect the reinvestment of all dividends and capital gains on the securities included in the benchmark. Premier Shares carry a $1 million minimum initial investment and carry no sales charge. Investor Shares were introduced on 8/24/98 and have a minimum initial investment of $2,500. Please note internal expenses are greater for the Investor Shares class. Performance measurements for the Investor Shares prior to 8/24/98 are based on the predecessor Premier Shares class and do not include Investor Share class expenses. Chase Equity Income Fund is the successor to the AVESTA Trust Equity Income Fund. Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part of the conversion, the Fund transferred all of its assets to Chase Equity Income Fund, a new investment portfolio of MFIT. Chase Equity Income Fund, unlike the AVESTA Equity Income Fund is subject to certain diversification, distribution and other requirements imposed under the Internal Revenue Code, which may impact performance. The Lipper Equity Income Funds Index represents performance of the largest 30 Equity Income Funds. Each of these funds combines a growth of earnings orientation and an income requirement for level and/or rising dividends. The Lipper Large Cap Value Index consists of funds that invest in large-cap value stocks. Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge. An individual cannot invest directly in an index. The Standard and Poor's 500 Index is an unmanaged broad-based index that replicates the U.S. stock market. It includes 500 widely held common stocks. Total return figures include the reinvestment of dividends. An individual cannot invest directly in an index. 22 -------------------------------------------------------------------------------- CHASE SMALL CAPITALIZATION FUND As of December 31, 1999 (Unaudited) -------------------------------------------------------------------------------- How the Fund Performed Chase Small Capitalization Fund, which seeks to provide capital appreciation, provided a total return of 13.23% (Premier Shares) compared to the Lipper Small Company Funds Index return of 41.54% and Lipper Small Cap Core Fund Index return of 20.17% for the one year period ended December 31, 1999. How the Fund Was Managed Superior stock selection helped the Fund perform well in the final quarter of the year. It benefited from holding a number of the small caps judged likely to grow earnings as a result of expansion in the Internet economy and advances in healthcare. Further, there were a number of names in the portfolio that were taken over toward year-end. Almost all of the year's gain came in the fourth quarter, when technology companies rallied in expectation of a surge in demand for semiconductor devices, cell phones and communications equipment. Vishay Intertechnology and CTS--the contract manufacturing electronics company--were strong performers, as were Molecular Devices, an instrumentation company enabling drug discovery, and King Pharmaceuticals. Oak Industries, a provider of components for the communications industry, rose following its November acquisition by technology company Corning. The deal strengthens Corning's position as a global leader in optical communications. The biggest contributors to performance for the year as a whole also tended to come from the technology sector. Comverse Technology, the telecommunication equipment specialist, was a leading holding, as was Cree Research, and Actel, two semiconductor companies. Micros Systems, the software development company, also performed well, as did Optical Coating Laboratory and PRI Automation. In the early months of the year, small-cap performance was lackluster as investors focused on large cap stocks. During the second quarter, however, performance rebounded somewhat as the equity market's leadership stocks broadened out to include not just the large technology stocks. An array of sectors from basic materials to capital goods to consumer cyclicals performed well in the period. The third quarter was another dull period for small caps as inflation worries dogged the market. Where the Fund May Be Headed We are cautiously optimistic regarding the prospects for small-cap stocks. Earnings forecasts for small caps are roughly double those of large caps, and small-cap valuations are still reasonable. However, there is a caveat in that small-cap stock prices would be particularly vulnerable to sustained rises in interest rates. 23 CHASE SMALL CAPITALIZATION FUND As of December 31, 1999 (Unaudited) Percentage of Total Portfolio Investments [PIE CHART PLOT POINTS] Technology (28.8%) Consumer Cyclicals (20.9%) Health Care (12.5%) Capital Goods (12.3%) Financial (7.8%) Cash Equivalent & Short-Term Paper (5.4%) Energy (3.9%) Utilities (3.4%) Basic Materials (2.0%) Real Estate (1.3%) Transportation (1.1%) Consumer Staples (0.6%) [END PLOT POINTS] Top Ten Equity Holdings of the Portfolio 1. Optical Coating Laboratory, Inc. (3.3%) Manufactures optical thin film coated components used to manage light. The Company's products are used in computer monitors, flat panel displays and telecommunications systems. 2. PRI Automation, Inc. (3.2%) Supplies factory automation systems for semiconductor manufacturers and original equipment suppliers. 3. CTS Corp. (3.0%) Designs, manufactures and sells electronic components and custom electronic assemblies. The Company sells its products to original equipment manufacturers primarily in the communications equipment markets. 4. Comverse Technology, Inc. (2.7%) Designs, manufactures, markets, and supports computer and telecommunications systems and software for multimedia communications and information processing applications. 5. Molecular Devices Corp. (2.4%) Designs, develops, manufactures, and markets bioanalytical measurement systems, including software and consumables. 6. OAK Industries, Inc. (2.4%) Manufactures engineered components that it designs and sells to manufacturers and service providers in communication and other selected industries. 7. Vishay Intertechnology, Inc. (2.1%) Manufactures a broad line of discrete passive electronic components and discrete active electronic components, particularly resistors and transistors. 8. Micros Systems, Inc. (2.1%) Designs, manufactures, markets, and services enterprise information solutions for the global hospitality industry. The Company's solutions consist of application specific software and hardware systems. 9. BJ's Wholesale Club, Inc. (2.0%) A merchandise wholesale club chain. The Company sells brand name food and general merchandise at discount prices. 10. Spartech Corp. (2.0%) Produces engineered thermoplastic materials, polymeric compounds, and molded and profile products for a wide spectrum of manufacturing customers. Top 10 equity holdings comprised 25.2% of the Portfolio's market value of investments. Portfolio holdings are subject to change at any time. 24 CHASE SMALL CAPITALIZATION FUND As of December 31, 1999 (Unaudited) Average Annual Total Returns
Since Inception 1 Year 3 Years 5 Years 4/1/93 Premier Shares 13.23% 11.32% 18.80% 13.99% Investor Shares 12.89% 11.17% 18.71% 13.92%
Life of Fund Performance* [LINE CHART PLOT POINTS]
Chase Small Lipper Small Company Lipper Small Cap Capitalization Fund Funds Index Core Fund Index S&P 500 Index 4/93 10000 10000 10000 10000 12/93 10890 11565 10948 11469 12/94 10230 11509 10966 10921 12/95 13410 15148 14338 14194 12/96 17550 17324 17020 17220 12/97 21781 19926 20804 21626 12/98 21381 19755 20047 21342 12/99 24208 27962 24092 23991
[END PLOT POINTS] *Source: Lipper Analytical Services, Inc. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The Fund is currently waiving certain fees. The voluntary waiver may be modified or terminated at any time, which would reduce performance. This chart represents the comparative performance of $10,000 invested in Premier Shares of Chase Small Capitalization Fund, the Standard & Poor's 600 Index and the Lipper Small Company Funds Index from April 1, 1993 to December 31, 1999. The performance of the Fund assumes the reinvestment of all dividends and capital gains and does not include a sales charge. The performance of the Index and the Average do not include a sales charge and have been adjusted to reflect the reinvestment of all dividends and capital gains on the securities included in the benchmark. Premier Shares carry a $1 million minimum initial investment and carry no sales charge. Investor Shares were introduced on 8/12/98 and have a minimum initial investment of $2,500. Please note internal expenses are greater for the Investor Shares class. Performance measurements for the Investor Shares prior to 8/12/98 are based on the predecessor Premier Shares class and do not include Investor Share class expenses. The Chase Small Capitalization Fund is the successor to the AVESTA Trust Small Capitalization Fund. Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part of the conversion, the Fund transferred all of its assets to Chase Small Capitalization Fund, a new investment portfolio of MFIT. The Chase Small Capitalization Fund, unlike the AVESTA Small Capitalization Fund is subject to certain diversification, distribution and other requirements imposed under the Internal Revenue Code, which may impact performance. The Lipper Small Company Funds Index represents the performance of the 30 largest small company funds. The Lipper Small Cap Core Index consists of funds that invest in small-capitalization stocks. Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge. The Standard and Poor's 600 Index is a broad-based index consisting of 600 small capitalization companies. The index is unmanaged and reflects the reinvestment of dividend. An individual cannot invest directly in an index. Small Capitalization funds typically carry more risk than stock funds investing in well-established blue chip companies since smaller companies generally have a higher risk of failure. Historically smaller companies' stock has experienced a greater degree of market volatility than the average stock. 25 -------------------------------------------------------------------------------- CHASE CORE EQUITY FUND As of December 31, 1999 (Unaudited) -------------------------------------------------------------------------------- How the Fund Performed Chase Core Equity Fund, which seeks to maximize total investment return with an emphasis on long-term capital appreciation and current income, provided a total return of 23.89% (Premier Shares) compared to the Lipper Growth & Income Funds Index return of 11.86% and Lipper Large Cap Core Index return of 19.35% for the one year period ended December 31, 1999. How the Fund Was Managed Skillful stock selection and good performance by precisely the type of stock bought by the Fund (i.e., high quality, large-cap growth stocks with superior earnings prospects) led to superior returns compared to the market. Most of the gain was recorded in the fourth quarter, when the Fund rode the technology-stock rally to return a total of 15.58%. Technology stocks rallied as the market focused on areas judged likely to profit from the Internet economy. Expectations of strong growth in demand for semiconductors, cell phones and communications equipment boosted many names. Holdings like Microsoft, Cisco Systems and Nortel Networks all performed well. But gains were not restricted to technology. The Fund benefited from an investment in Omnicom, the advertising and marketing multinational, where growth in internet dot.com advertising should boost profits. Stock prices of a number of `old media' companies--like AT&T Liberty Media and Time Warner--also rose in anticipation of convergence with `new media'. The Fund's investment style was even suited to the difficult third quarter, when inflation and valuation worries haunted the market. Much of the equity market was trapped in a trading range, and those companies that missed earnings forecasts were severely punished. Yet technology stocks and a small number of well-managed blue chips continued to make new highs. The Fund benefited from holdings in companies like Microsoft, Intel and Dell Computer. It also had positions in well-managed multinationals like GE and Procter & Gamble. However, a number of portfolio stocks did perform badly at that time as a result of disappointing trading. Discount broker Charles Schwab fell sharply after warning that profit margins might deteriorate sharply later in the year. Where the Fund May Be Headed Looking ahead, market rises may no longer focus to such an extent on technology stocks, but may include a broader selection of stocks. If interest rates continue to move higher, technology-stock valuations will be impacted. As always, the Fund may benefit both from its balanced approach and its strategy of holding large companies with superior earnings growth and leadership positions in their markets. 26 CHASE CORE EQUITY FUND As of December 31, 1999 (Unaudited) Percentage of Total Portfolio Investments [PIE CHART PLOT POINTS] Technology (26.9%) Consumer Cyclicals (17.0%) Financial (13.5%) Health Care (10.3%) Utilities (7.5%) Capital Goods (7.3%) Energy (7.1%) Cash Equivalent & Short-Term Paper (4.9%) Consumer Staples (2.7%) Basic Materials (1.9%) Transportation (0.9%) [END PLOT POINTS] Top Ten Equity Holdings of the Portfolio 1. Microsoft Corp. (6.6%) Develops, manufactures, licenses and supports computer software products. 2. General Electric Co. (4.5%) A diversified manufacturing, technology and services company. Operations include appliance manufacturing, capital services, information services, and electrical distribution. 3. Wal-Mart Stores, Inc. (3.6%) The "Wal-Mart" Company's discount stores and "Supercenters" offer merchandise such as apparel, housewares, small appliances, electronics, hardware, and other products. 4. Exxon Mobil Corp. (3.1%) Operates petroleum and petrochemicals businesses on a worldwide basis. Operations include exploration and production of oil and gas. 5. American International Group, Inc. (2.8%) Provides a variety of insurance and financial services in the U.S. and internationally. The Company writes property, casualty, marine, life, and financial services insurance. 6. Cisco Systems, Inc. (2.8%) Supplies data networking products to the corpo- rate enterprise and public wide area service provider markets. 7. Intel Corp. (2.3%) Manufactures micro and personal computers. The Company also supplies mainframe computers and other information processing equipment, software and networking products and peripheral equipment. 8. Home Depot, Inc. (2.2%) Sells building materials and home improvement products. The Company's stores sell plumbing, heating and electrical supplies, lumber, floor and wall coverings. 9. Lucent Technologies, Inc. (2.2%) Designs, develops, manufactures, and distributes communications systems, software, and products worldwide. 10. Citigroup, Inc. (2.1 %) A diversified financial services holding company that provides investment services, including asset management, consumer finance services, property and casualty insurance services, and life insurance services. Top 10 equity holdings comprised 32.2% of the Portfolio's market value of investments. Portfolio holdings are subject to change at any time. 27 CHASE CORE EQUITY FUND As of December 31, 1999 (Unaudited) Average Annual Total Returns
Since Inception 1 Year 3 Years 5 Years 4/1/93 Premier Shares 23.89% 29.32% 27.18% 20.11% Investor Shares 23.59% 29.17% 27.09% 20.05%
Life of Fund Performance* [LINE CHART PLOT POINTS]
Chase Core Lipper Growth & Lipper Large Cap Equity Fund Income Funds Index Core Index S&P 500 Index 4/93 10000 10000 10000 10000 12/93 10800 10821 10688 10547 12/94 10358 10777 10573 10687 12/95 13006 14132 13930 14702 12/96 15936 17054 16694 18078 12/97 21246 21638 21573 24109 12/98 27823 24576 27384 31000 12/99 34476 27491 32682 37523
[END PLOT POINTS] *Source: Lipper Analytical Services, Inc. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The Fund is currently waiving certain fees. The voluntary waiver may be modified or terminated at any time, which would reduce performance. This chart represents the comparative performance for $10,000 invested in Premier Shares of Chase Core Equity Fund, the Standard & Poor's 500 Index and Lipper Growth and Income Funds Index from April 1, 1993 to December 31, 1999. The performance of the Fund assumed the reinvestment of all dividends and capital gains and does not include a sales charge. The performance of the indices does not include a sales charge and has been adjusted to reflect the reinvestment of all dividends and capital gains on the securities included in the benchmark. Premier Shares carry a $1 million minimum initial investment and carry no sales charge. Investor Shares were introduced on 9/10/98 and have a minimum initial investment of $2,500. Please note internal expenses are greater for the Investor Shares class. Performance measurements for the Investor Shares prior to 9/10/98 are based on the predecessor Premier Shares class and do not include Investor Share expenses. Chase Core Equity Fund is the successor to the AVESTA Trust Core Equity Fund. Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part of the conversion, the Fund transferred all of its assets to Chase Core Equity Fund, a new investment portfolio of MFIT. Chase Core Equity Fund, unlike the AVESTA Core Equity Fund, is subject to certain diversification, distribution and other requirements imposed under the Internal Revenue Code, which may impact performance. The Lipper Growth and Income Funds Index represents performance of the largest 30 growth and income funds. Each of these funds combines a growth of earnings orientation and an income requirement for level and/or rising dividends. The Lipper Large Cap Core Index consists of funds that invest in both growth and value stocks. Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge. An individual cannot invest directly in an index. The Standard and Poor's 500 Index is an unmanaged broad-based index that replicates the U.S. stock market. It includes 500 widely held common stocks. Total return figures include the reinvestment of dividends. An individual cannot invest directly in the index. 28 -------------------------------------------------------------------------------- CHASE EQUITY GROWTH FUND As of December 31, 1999 (Unaudited) -------------------------------------------------------------------------------- How the Fund Performed Chase Equity Growth Fund, which seeks to provide capital appreciation, generated a total return of 31.85% (Premier Shares) compared to the Lipper Growth Funds Index return of 27.96% and Lipper Large Cap Growth Index return of 34.82% for the one year period ended December 31, 1999. How the Fund Was Managed Skillful stock selection benefited the Fund in a year that was perfectly suited to its style of investing in large-cap growth companies. Technology stocks made the greatest contributions to performance, but biotechnology stocks were also beginning to perform towards the year-end in anticipation of advances in medical science. Most of the gain came in the fourth quarter, when technology companies rallied in expectation of a surge in demand for semiconductor devices, cell phones and communications equipment as a result of the burgeoning Internet economy. Stocks that rallied strongly then were also among the Fund's leading contributors to performance for the year as a whole. EMC Corp., Microsoft and Applied Material were all leading performers. Cisco Systems was also a major contributor. But the fourth quarter rally was not confined to technology. Financials performed strongly following the repeal of the Glass-Steagall Act that had prevented commercial and investment banks from merging. Another holding that performed well during the year was the biotechnology stock Amgen. Fellow biotechnology company Biogen was also strong, if a little volatile. Otherwise performance was fairly selective. Although retailing, for example, was poor as a sector, Wal-Mart and Home Depot made significant contributions to Fund performance. The Fund's investment style was even suited to the difficult third quarter, when inflation and valuation worries haunted the market. Much of the equity market was trapped in a trading range, and those companies that missed earnings forecasts were severely punished. Yet technology stocks and a small number of well-managed blue chips continued to make new highs. Although technology and other growth stocks came under pressure for a few weeks in May, they showed great resilience. Where the Fund May Be Headed Financial markets are in a climate of rising interest rates and historically high equity valuations. At the same time, investors were highly selective in 1999. While valuations in areas like technology rose significantly, many areas of the market--such as consumer staples--actually experienced declining prices. In this environment, there are some valuation discrepancies and, therefore, some opportunities. The Fund will seek to take advantage of these opportunities within the context of its focus on high-quality growth companies. 29 CHASE EQUITY GROWTH FUND As of December 31, 1999 (Unaudited) Percentage of Total Portfolio Investments [PIE CHART PLOT POINTS] Technology (37.7%) Health Care (15.2%) Consumer Cyclicals (14.6%) Capital Goods (9.2%) Utilities (9.1%) Financial (6.2%) Core Equivalent & Short-Term Paper (5.0%) Consumer Staples (2.4%) Transporation (0.6%) [END PLOT POINTS] Top Ten Equity Holdings of the Portfolio 1. Microsoft Corp. (5.9%) Develops, manufactures, licenses and supports computer software products. 2. General Electric Co. (4.8%) A diversified manufacturing, technology and services company. Operations include appliance manufacturing, capital services, information services, and electrical distribution. 3. EMC Corp. (4.1%) Provides enterprise storage systems, software, networks and services. 4. Intel Corp. (3.9%) Manufactures micro and personal computers. The Company also supplies mainframe computers and other information processing equipment, software and networking products and peripheral equipment. 5. Wal-Mart Stores, Inc. (3.8%) The "Wal-Mart" Company's discount stores and "Supercenters" offer merchandise such as apparel, housewares, small appliances, electronics, hardware, and other products. 6. Applied Materials, Inc. (3.6%) Develops, manufactures, markets and services semiconductor wafer fabrication equipment and related spare parts for the worldwide semiconductor industry. 7. Amgen, Inc. (3.4%) Discovers, develops, manufactures, and markets human therapeutics based on cellular and molecular biology. Focuses its research on secreted protein and small molecule therapeutics. 8. America Online, Inc. (3.1%) Provides interactive communications and services through its America Online and Compuserve worldwide Internet online services. 9. Novellus Systems, Inc. (3.1%) Manufactures, markets and services advanced automated wafer fabrication systems for the deposition of thin films. 10. Cisco Systems, Inc. (3.1%) Supplies data networking products to the corporate enterprise and public wide area service provider markets. Top 10 equity holdings comprised 38.8% of the Portfolio's market value of investments. Portfolio holdings are subject to change at any time. 30 CHASE EQUITY GROWTH FUND As of December 31, 1999 (Unaudited) Average Annual Total Returns
1 Year 3 Years 5 Years 10 Years Premier Shares 31.85% 36.75% 31.14% 18.45% Investor Shares 31.54% 36.58% 31.04% 18.41%
10 Year Performance* [LINE CHART PLOT POINTS]
Chase Equity Lipper Growth Lipper Large Cap S&P Barra Growth Fund Funds Index Growth Index Growth Index 12/89 10000 10000 10000 10000 12/90 9855 9459 9818 10020 12/91 12974 12895 13484 13865 12/92 13811 13879 14413 14567 12/93 14154 15541 15949 14812 12/94 14023 15297 15818 15275 12/95 17643 20292 21342 21100 12/96 21261 23850 25729 26160 12/97 29168 30536 32828 35677 12/98 41238 38380 44802 50715 12/99 54379 49112 60401 64907
[END PLOT POINTS] *Source: Lipper Analytical Services, Inc. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The Fund is currently waiving certain fees. The voluntary waiver may be modified or terminated at any time, which would reduce performance. This chart represents the comparative performance for $10,000 invested in Premier Shares of Chase Equity Growth Fund, the Standard and Poor's Barra Growth Index and Lipper Growth Funds Index from December 31, 1989 to December 31, 1999. The performance of the Fund assumes the reinvestment of all dividends and capital gains and does not include a sales charge. The performance of the indices does not include a sales charge and has been adjusted to reflect the reinvestment of all dividends and capital gains on the securities included in the benchmark. Premier Shares carry a $1 million minimum initial investment and carry no sales charge. Investor Shares were introduced on 8/13/98 and have a minimum initial investment of $2,500. Please note internal expenses are greater for the Investor Shares class. Performance measurements for the Investor Shares prior to 8/13/98 are based on the predecessor Premier Shares class and do not include Investor Share class expenses. Chase Equity Growth Fund is the successor to the AVESTA Trust Equity Growth Fund. Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part of the conversion, the Fund transferred all of its assets to Chase Equity Growth Fund, a new investment portfolio of MFIT. Chase Equity Growth Fund, unlike the AVESTA Equity Growth Fund, is subject to certain diversification, distribution and other requirements imposed under the Internal Revenue Code, which may impact performance. The Lipper Growth Funds Index represents performance of the largest 30 growth funds. Each of these funds invests in companies whose long-term earnings are expected to grow significantly faster than the earnings of the stocks represented in the major unmanaged stock indices. The Lipper Large Cap Growth Fund Index consists of funds that invest in large-cap growth stocks. Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge. An individual cannot invest directly in an index. The Standard and Poor's Barra Growth Index is an unmanaged broad-based index that replicates the U.S. stock market. It includes 500 widely held common stocks. Total return figures include the reinvestment of dividends. An individual cannot invest directly in an index. 31 -------------------------------------------------------------------------------- CHASE MONEY MARKET FUND Portfolio of Investments -------------------------------------------------------------------------------- As of December 31, 1999 (Amounts in Thousands)
Principal Amount Issuer Value ------------------------------------------------------------------------------------- Money Market Instruments -- 99.3% ------------------------------------------------------------------------------------- U.S. Government Agency Security -- 3.2% --------------------------------------- $ 10,000 Federal Home Loan Bank, DN, 6.13%, 12/22/00 $9,428 (Cost $9,428) State And Municipal Obligation -- 1.7% -------------------------------------- 5,000 Texas State, Taxable, Veterans Housing Assistance, Ser. A-2, FRDN, 6.50%, 01/05/00 5,000 (Cost $5,000) Corporate Notes & Bonds -- 49.0% -------------------------------- Asset Backed Securities -- 2.0% Beta Finance Corp., LTD., (Channel Islands), MTN, #, 2,000 5.20%, 03/01/00 2,000 3,000 5.27%, 05/15/00 3,000 1,000 CC USA Inc., (Centauri Corp.), MTN, #, 5.68%, 06/15/00 1,000 ------ 6,000 Automotive -- 12.2% 3,000 Chrysler Financial Co., LLC, MTN, 5.85%, 05/15/00 3,008 10,000 Ford Motor Credit Co., MTN, FRN, 5.74%, 08/18/00 9,996 10,000 General Motors Acceptance Corp., MTN, FRN, 6.46%, 11/09/00 10,024 2,000 PACCAR Financial Corp., MTN, 6.23%, 03/15/00 2,004 Toyota Motor Credit Corp., MTN, 3,000 5.76%, 07/06/00 3,000 4,000 FRN, 5.80%, 08/18/00 4,000 4,000 FRN, 5.81%, 10/12/00 4,000 ------ 36,032 Banking -- 8.1% American Express Centurion Bank, FRN, 1,000 5.85%, 05/16/00 1,000 4,000 5.85%, 09/29/00 4,000 12,000 Bank of New York Co., Inc., MTN, FRN, 6.09%, 06/05/00 11,997 U.S. Central Credit Union, MTN, 2,000 5.08%, 04/19/00 2,000 5,000 5.14%, 04/24/00 5,000 ------ 23,997 Computers/Computer Hardware -- 0.7% 2,000 IBM Credit Corp., MTN, 5.90%, 08/07/00 2,000 Financial Services -- 14.9% 5,000 Bollingbrent LTD Partnership, FRN, 6.59%, 01/06/00 5,000 10,000 CIT Group, Inc., MTN, FRN, 5.80%, 09/15/00 9,995 1,000 Commercial Credit Group Inc., 6.13%, 03/01/00 1,002 Goldman Sachs Group LP, FRN, #, 6,000 6.26%, 01/12/01 6,000 3,000 6.31%, 01/26/00 3,000 International Lease Finance Corp., 1,500 6.20%, 05/01/00 1,503 5,000 MTN, 6.69%, 04/03/00 5,017 Merrill Lynch & Co., Inc., MTN, 1,000 5.56%, 06/30/00 1,000 5,000 FRN, 6.07%, 08/14/00 4,998 2,000 FRN, 6.46%, 08/03/00 2,003 5,000 Morgan Stanley Dean Witter & Co., MTN, FRN, 6.67%, 11/13/00 5,025 ------ 44,543
See notes to financial statements. 32 CHASE MONEY MARKET FUND Portfolio of Investments (Continued) As of December 31, 1999 (Amounts in Thousands)
Principal Amount Issuer Value --------------------------------------------------------------------------------------- Money Market Instruments -- Continued --------------------------------------------------------------------------------------- Machinery & Engineering Equipment -- 6.7% Caterpillar Financial Services Corp., MTN, $ 2,250 5.80%, 03/15/00 $ 2,252 7,500 FRN, 6.21%, 06/08/00 7,503 10,000 John Deere Capital Corp., MTN, FRN, 6.43%, 11/09/00 10,021 ------- 19,776 Office Equipment -- 0.7% 2,000 Xerox Credit Corp., MTN, 5.83%, 05/08/00 1,999 Retailing -- 1.0% Wal-Mart Stores Inc., 2,000 5.65%, 02/01/00 2,001 1,000 5.85%, 06/01/00 1,001 ------- 3,002 Telecommunications -- 2.0% 6,000 AT&T Corp., FRN, #, 6.14%, 07/13/00 5,997 Utilities -- 0.7% 2,000 National Rural Utilities Co., MTN, FRN, 5.81%, 09/08/00 2,000 --------------------------------------------------------------------------------------- Total Corporate Notes & Bonds 145,346 (Cost $145,346) ----------------------------------------------------------------------- Discount Commercial Paper -- 31.0% ---------------------------------- Asset Backed Securities -- 5.7% 2,836 Alpine Securitization, 6.37%, 02/22/00 2,810 10,000 Blue Ridge Asset Funding Corp., 6.20%, 02/15/00 9,924 4,218 Quincy Capital Corp., 6.07%, 02/04/00 4,194 ------- 16,928 Banking -- 2.3% 7,000 Citibank Capital Markets Assets, LLC, 6.10%, 02/25/00 6,936 Chemicals -- 4.0% 12,000 E.I. Dupont de Nemours Co., 5.87%, 03/10/00 11,868 Diversified -- 4.0% General Electric Capital Corp., 7,000 5.95%, 02/28/00 6,934 5,000 6.04%, 03/17/00 4,938 ------- 11,872 Entertainment/Leisure -- 1.0% 3,000 Walt Disney Co., #, 5.34%, 02/02/00 2,986 Financial Services -- 7.9% 5,000 Associates Corp. of North America, 5.86%, 02/08/00 4,970 9,000 Cargill Global Funding PLC, #, 5.58%, 01/13/00 8,985 3,482 Kitty Hawk Funding Corp., #, 6.03%, 02/09/00 3,460 6,000 Nationwide Building Society, (United Kingdom), 5.49%, 01/14/00 5,988 ------- 23,403 Food/Beverage Products -- 1.7% 5,000 Archer Daniels Midland Co., 5.89%, 04/03/00 4,926 Insurance -- 3.4% 10,000 Allstate Corp., #, 5.89%, 02/15/00 9,928 Metals/Mining -- 1.0% 3,000 Rio Tinto America Inc., 5.88%, 01/21/00 2,990 --------------------------------------------------------------------------------------- Total Discount Commercial Paper 91,837 (Cost $91,837) ---------------------------------------------------------------------------------------
See notes to financial statements. 33 CHASE MONEY MARKET FUND Portfolio of Investments (Continued) As of December 31, 1999 (Amounts in Thousands)
Principal Amount Issuer Value ---------------------------------------------------------------------------------- Money Market Instruments -- Continued ---------------------------------------------------------------------------------- Certificates Of Deposit -- 11.5% -------------------------------- $ 10,000 Banco Popolare di Milano, (Italy), 6.02%, 02/22/00 $ 10,000 5,000 Bayerische Landesbank, (Germany), FRN, 6.39%, 12/15/00 4,996 3,000 Commerzbank AG, (Germany), 5.12%, 04/25/00 2,999 5,000 First Union National Bank, FRN, 6.27%, 09/25/00 5,000 10,000 Landesbank Baden-Wuerttemberg, (Principal in Euro), (Germany), 6.04%, 03/06/00 10,001 1,000 Royal Bank of Canada, (Canada), 5.12%, 03/20/00 1,000 ------------------------------------------------------------------ Total Certificates Of Deposit 33,996 (Cost $33,996) ------------------------------------------------------------------ Repurchase Agreement -- 2.9% ---------------------------- 8,469 Lehman Bros. Inc. Tri Party, 3.75%, due 01/03/00 8,469 (Dated 12/31/99, Proceeds $8,472, Secured by FNMA, $8,323, 6.50% through 9.00%, due 05/18/25 through 12/18/25; Market Value $8,639) (Cost $8,469) ---------------------------------------------------------------------------------- Total Investments -- 99.3% $294,076 (Cost $294,076) ----------------------------------------------------------------------------------
See notes to financial statements. 34 -------------------------------------------------------------------------------- CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND Portfolio of Investments -------------------------------------------------------------------------------- As of December 31, 1999 (Amounts in Thousands)
Principal Amount Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- 97.0% -------------------------------------------------------------------------------- U.S. Treasury Securities -- 36.0% --------------------------------- U.S. Treasury Notes & Bonds, $ 1,500 4.75%, 11/15/08 $ 1,323 4,800 5.50%, 12/31/00 4,772 1,200 5.50%, 03/31/03 1,170 1,000 5.63%, 02/15/06 957 1,000 5.75%, 11/30/02 985 900 5.88%, 11/30/01 894 250 5.88%, 09/30/02 247 1,100 6.88%, 05/15/06 1,119 ---------------------------------------------------------------- Total U.S. Treasury Securities 11,467 (Cost $11,729) ---------------------------------------------------------------- U.S. Government Agency Securities -- 45.3% ------------------------------------------ Federal Farm Credit Bank, 1,500 5.25%, 05/01/02 1,455 1,500 5.88%, 07/02/01 1,488 1,330 MTN, 6.90%, 05/01/02 1,336 Federal Home Loan Bank, 1,500 5.13%, 04/17/01 1,476 1,300 6.79%, 04/17/01 1,303 1,500 Federal Home Loan Mortgage Corp., 6.25%, 10/15/02 1,486 Federal National Mortgage Association, 1,500 5.25%, 01/15/03 1,443 1,000 6.00%, 05/15/08 936 1,500 6.25%, 11/15/02 1,486 1,000 6.50%, 08/15/04 988 1,000 7.10%, 10/18/04 991 ---------------------------------------------------------------- Total U.S. Government Agency Securities 14,388 (Cost $14,505) ---------------------------------------------------------------- Mortgage-Backed Pass Through Securities -- 15.7% ------------------------------------------------ Collateralized Mortgage Obligation -- 4.6% 1,483 Federal Home Loan Mortgage Corp., Ser. 2196, Class MA, 7.00%, 11/15/06 1,470 Residential Mortgage-Backed Pass Through Securities -- 11.1% Federal National Mortgage Association, 1,070 Pool 190806, 6.00%, 05/01/01 1,057 2,552 Pool 251901, 6.50%, 08/01/13 2,476 ------- 3,533 -------------------------------------------------------------------------------- Total Mortgage-Backed Pass Through Securities 5,003 (Cost $5,121) -------------------------------------------------------------------------------- Total Long-Term Investments 30,858 (Cost $31,355) -------------------------------------------------------------------------------- Short-Term Investment -- 2.1% -------------------------------------------------------------------------------- U.S. Government Agency Security -- 2.1% --------------------------------------- 677 Federal Home Loan Bank, DN, 1.40%, 01/03/00 677 (Cost $677) -------------------------------------------------------------------------------- Total Investments -- 99.1% $31,535 (Cost $32,032) --------------------------------------------------------------------------------
See notes to financial statements. 35 -------------------------------------------------------------------------------- CHASE INTERMEDIATE TERM BOND FUND Portfolio of Investments -------------------------------------------------------------------------------- As of December 31, 1999 (Amounts in Thousands)
Principal Amount (USD) Issuer Value ------------------------------------------------------------------------------------- Long-Term Investments -- 84.1% ------------------------------------------------------------------------------------- U.S. Treasury Security -- 5.6% ------------------------------ $ 2,380 U.S. Treasury Bond, 6.25%, 08/15/23 $2,244 (Cost $2,389) U.S. Government Agency Securities -- 10.7% ------------------------------------------ Federal Home Loan Bank, 1,400 5.40%, 03/01/04 1,326 500 7.00%, 04/02/07 497 Federal Home Loan Mortgage Corp., 1,300 5.75%, 03/15/09 1,187 1,300 6.25%, 07/15/04 1,271 ------------------------------------------------------------------- Total U.S. Government Agency Securities 4,281 (Cost $4,373) ------------------------------------------------------------------- Corporate Notes & Bonds -- 38.3% -------------------------------- Automotive -- 3.1% 500 Ford Motor Credit Co., 7.38%, 10/28/09 494 750 TRW, Inc., #, 6.45%, 06/15/01 742 ------ 1,236 Banking -- 1.6% 750 U.S. Bank, NA, 5.70%, 12/15/08 657 Computers/Computer Hardware -- 1.8% 750 Electronic Data Systems Corp., 7.13%, 10/15/09 730 Consumer Products -- 2.0% 800 Procter & Gamble Co., 6.60%, 12/15/04 790 Diversified -- 2.0% 800 Tyco International Group, SA, (Luxembourg), 6.13%, 06/15/01 786 Electronics/Electrical Equipment -- 1.7% 700 General Electric Capital Corp., MTN, 5.91%, 05/07/01 693 Financial Services -- 9.8% 900 American Express Co., 8.50%, 08/15/01 924 600 Associates Corp. of North America, 6.63%, 05/15/01 598 600 International Lease Finance Corp., 5.95%, 06/01/01 592 800 Lehman Brothers Holdings Inc., 6.63%, 04/01/04 774 1,000 Merrill Lynch & Co., Inc., MTN, 6.10%, 12/10/01 985 ------ 3,873 Oil & Gas -- 5.8% 800 Amerada Hess Corp., 7.88%, 10/01/29 781 800 Conoco, Inc., 5.90%, 04/15/04 764 800 Occidental Petroleum Corp., 7.38%, 11/15/08 779 ------ 2,324 Retailing -- 2.5% 1,000 Wal-Mart Stores, Inc., 6.15%, 08/10/01 991 Telecommunications -- 3.0% 750 Metronet Communications Corp., (Canada), SUB, 0.00%, 06/15/03 592 700 U.S. West Capital Funding, Inc., 6.50%, 11/15/18 605 ------ 1,197
See notes to financial statements. 36 CHASE INTERMEDIATE TERM BOND FUND Portfolio of Investments (Continued) As of December 31, 1999 (Amounts in Thousands)
Principal Amount (USD) Issuer Value -------------------------------------------------------------------------------------------- Long-Term Investments -- Continued -------------------------------------------------------------------------------------------- Utilities -- 5.0% $ 800 Empresa Nacional de Electricidad SA, Ser. B, (Chile), 8.50%, 04/01/09 $ 793 500 Hydro-Quebec, Ser.B, (Canada), MTN, 6.86%, 04/01/05 490 700 Israel Electronic Corp., (Israel), MTN, #, 8.25%, 10/15/09 698 ------- 1,981 ------- -------------------------------------------------------------------------- Total Corporate Notes & Bonds 15,258 (Cost $15,498) -------------------------------------------------------------------------- Mortgage-Backed Pass Through Securities -- 29.5% ------------------------------------------------ Residential Mortgage-Backed Pass Through Securities -- 29.5% Federal Home Loan Mortgage Corp., 1,232 Gold Pool C17245, 7.00%, 11/01/28 1,192 2,320 Gold Pool E77074, 6.00%, 05/01/14 2,202 Federal National Mortgage Association, 59 Pool 124734, 6.50%, 03/01/00 59 287 Pool 250772, 7.00%, 12/01/03 287 362 Pool 398212, 6.50%, 02/01/13 351 1,609 Pool 398265, 6.00%, 03/01/28 1,472 942 Pool 442508, 6.00%, 09/01/13 895 Government National Mortgage Association, 439 Pool 436259, 6.50%, 03/15/28 412 762 Pool 448704, 7.50%, 10/15/27 754 434 Pool 462508, 6.50%, 02/15/28 407 282 Pool 476305, 6.50%, 05/15/28 265 281 Pool 478172, 6.50%, 06/15/28 264 1,497 Pool 491662, 7.00%, 10/15/29 1,446 749 Pool 498870, 7.00%, 10/15/29 723 1,097 Pool 504549, 7.00%, 09/15/29 1,059 -------------------------------------------------------------------------- Total Mortgage-Backed Pass Through Securities 11,788 (Cost $12,273) -------------------------------------------------------------------------------------------- Total Long-Term Investments 33,571 (Cost $34,533) -------------------------------------------------------------------------------------------- Short-Term Investment -- 14.6% -------------------------------------------------------------------------------------------- U.S. Government Agency Security -- 14.6% ---------------------------------------- 5,822 Federal Home Loan Bank, DN, 1.40%, 01/03/00 5,822 (Cost $5,822) -------------------------------------------------------------------------------------------- Total Investments -- 98.7% $39,393 (Cost $40,355) --------------------------------------------------------------------------------------------
See notes to financial statements. 37 -------------------------------------------------------------------------------- CHASE U.S. GOVERNMENT SECURITIES FUND Portfolio of Investments -------------------------------------------------------------------------------- As of December 31, 1999 (Amounts in Thousands)
Principal Amount Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- 93.0% -------------------------------------------------------------------------------- U.S. Treasury Securities -- 33.6% --------------------------------- U.S. Treasury Notes & Bonds, $ 535 6.25%, 10/31/01 $ 535 350 6.50%, 08/31/01 351 675 7.13%, 02/15/23 703 850 8.75%, 05/15/17 1,015 ---------------------------------------------------------------- Total U.S. Treasury Securities 2,604 (Cost $2,646) ---------------------------------------------------------------- U.S. Government Agency Securities -- 18.3% ------------------------------------------ Federal National Mortgage Association, 250 6.25%, 11/15/02 248 500 6.38%, 06/15/09 477 700 6.50%, 08/15/04 691 ---------------------------------------------------------------- Total U.S. Government Agency Securities 1,416 (Cost $1,448) ---------------------------------------------------------------- Mortgage-Backed Pass Through Securities -- 41.1% ------------------------------------------------ Residential Mortgage-Backed Pass Through Securities -- 41.1% 400 Federal Home Loan Mortgage Corp., Gold Pool E00766, 7.00%, 12/01/14 396 Federal National Mortgage Association, 300 Pool 252921, 7.50%, 11/01/14 302 650 Pool 511599, 8.00%, 12/01/29 656 467 Pool 523930, 8.00%, 11/01/29 470 650 Pool 525908, 7.00%, 12/01/29 629 Government National Mortgage Association, 400 Pool 434628, 8.00%, 12/15/29 404 325 Pool 510845, 7.50%, 12/15/29 321 ---------------------------------------------------------------- Total Mortgage-Backed Pass Through Securities 3,178 (Cost $3,200) -------------------------------------------------------------------------------- Total Long-Term Investments 7,198 (Cost $7,294) -------------------------------------------------------------------------------- Short-Term Investment -- 6.3% -------------------------------------------------------------------------------- U.S. Government Agency Security -- 6.3% --------------------------------------- 484 Federal Home Loan Bank, DN, 1.40%, 01/03/00 484 (Cost $484) -------------------------------------------------------------------------------- Total Investments -- 99.3% $7,682 (Cost $7,778) --------------------------------------------------------------------------------
See notes to financial statements. 38 -------------------------------------------------------------------------------- CHASE INCOME FUND Portfolio of Investments -------------------------------------------------------------------------------- As of December 31, 1999 (Amounts in Thousands)
Principal Amount (USD) Issuer Value ----------------------------------------------------------------------------------- Long-Term Investments -- 86.4% ----------------------------------------------------------------------------------- U.S. Treasury Securities -- 11.5% --------------------------------- U.S. Treasury Notes & Bonds, $ 2,000 6.25%, 08/15/23 $1,886 5,000 8.13%, 08/15/19 - 5,697 ----------------------------------------------------------------- Total U.S. Treasury Securities 7,583 (Cost $7,894) ----------------------------------------------------------------- U.S. Government Agency Securities -- 15.3% ------------------------------------------ Federal Home Loan Bank, 4,000 4.88%, 01/22/02 - 3,870 1,650 6.38%, 08/15/06 - 1,595 Federal National Mortgage Association, 1,500 6.38%, 06/15/09 1,432 1,750 6.50%, 08/15/04 1,728 1,500 Tennessee Valley Authority, 6.00%, 09/24/02 1,474 ----------------------------------------------------------------- Total U.S. Government Agency Securities 10,099 (Cost $10,388) ----------------------------------------------------------------- Foreign Government Security -- 1.1% ----------------------------------- 750 Quebec Province, (Canada), 6.50%, 01/17/06 - 720 (Cost $735) Corporate Notes & Bonds -- 27.3% -------------------------------- Automotive -- 3.7% 1,000 Ford Motor Credit Co., 6.25%, 12/08/05 - 945 TRW, Inc., #, 750 6.45%, 06/15/01 743 800 7.75%, 06/01/29 750 ------ 2,438 Banking -- 5.0% 1,400 BankAmerica Corp., 6.20%, 02/15/06 - 1,320 Korea Development Bank, (South Korea), 700 6.50%, 11/15/02 - 680 700 7.13%, 09/17/01 - 695 700 U.S. Bank, NA, 5.70%, 12/15/08 - 613 ------ 3,308 Business Services -- 1.1% 750 Comdisco, Inc., 7.25%, 09/01/02 - 742 Diversified -- 2.1% Tyco International Group, SA, (Luxembourg), 750 5.88%, 11/01/04 694 700 6.13%, 06/15/01 - 688 ------ 1,382 Financial Services -- 2.2% 750 Lehman Brothers Holdings Inc., 6.63%, 02/05/06 - 709 750 TXU Eastern Funding Co., (United Kingdom), #, 6.15%, 05/15/02 731 ------ 1,440 Food/Beverage Products -- 4.1% 2,000 Anheuser-Busch Companies, Inc., 6.75%, 08/01/03 - 1,988 750 Coca-Cola Enterprises, 7.13%, 09/30/09 - 733 ------ 2,721
See notes to financial statements. 39 CHASE INCOME FUND Portfolio of Investments (Continued) As of December 31, 1999 (Amounts in Thousands)
Principal Amount (USD) Issuer Value ------------------------------------------------------------------------------------------- Long-Term Investments -- Continued ------------------------------------------------------------------------------------------- Insurance -- 1.1% $ 700 Conseco, Inc., 8.50%, 10/15/02 - $ 708 Oil & Gas -- 2.2% 1,500 Amerada Hess Corp., 7.88%, 10/01/29 - 1,463 Packaging -- 0.7% 500 Tenneco Packaging, Inc., 8.00%, 04/15/07 491 Retailing -- 1.0% 750 Kroger Co., 6.38%, 03/01/08 680 Telecommunications -- 2.5% 450 Metronet Communications Corp., (Canada), SUB, 0.00%, 06/15/03 355 800 Sprint Capital Corp., 6.13%, 11/15/08 - 725 600 U.S. West Capital Funding, Inc., 6.25%, 07/15/05 568 ------- 1,648 Utilities -- 1.6% 600 Empresa Nacional de Electricidad SA, Ser. B, (Chile), 8.50%, 04/01/09 - 595 500 Israel Electronic Corp., (Israel), #, MTN 7.75%, 12/15/27 432 ------- 1,027 ------------------------------------------------------------------------ Total Corporate Notes & Bonds 18,048 (Cost $18,212) ------------------------------------------------------------------------ Mortgage-Backed Pass Through Securities -- 28.9% ------------------------------------------------ Residential Mortgage-Backed Pass Through Securities -- 28.9% Federal National Mortgage Association, 2,500 Pool 10940, 6.00%, 01/15/49 2,287 1,400 Pool 13975, 7.00%, 01/25/15 1,384 2,700 Pool 16475, 6.50%, 01/15/49 2,619 5,700 Pool 28668, 6.50%, 01/15/49 5,370 3,400 Pool 30037, 7.50%, 01/15/49 3,362 4,200 Pool 32767, 7.00%, 01/15/49 4,061 ------------------------------------------------------------------------- Total Mortgage-Backed Pass Through Securities 19,083 (Cost $19,249) ------------------------------------------------------------------------- Asset Backed Securities -- 2.3% ------------------------------- 800 MBNA Master Credit Card Trust, Ser. 1999-M, Class B, 6.80%, 04/16/07 786 750 Residential Asset Securities Corp., Ser. 1999-KS4, Class AI3, 6.94%, 04/25/25 741 ------------------------------------------------------------------------- Total Asset Backed Securities 1,527 (Cost $1,547) ------------------------------------------------------------------------------------------- Total Long-Term Investments 57,060 (Cost $58,025) ------------------------------------------------------------------------------------------- Short-Term Investment -- 42.1% ------------------------------------------------------------------------------------------- U.S. Government Agency Security -- 42.1% ---------------------------------------- 27,791 Federal Home Loan Bank, DN, 1.40%, 01/03/00 - 27,789 (Cost $27,789) ------------------------------------------------------------------------------------------- Total Investments -- 128.5% $84,849 (Cost $85,814) -------------------------------------------------------------------------------------------
See notes to financial statements. 40 -------------------------------------------------------------------------------- CHASE BALANCED FUND Portfolio of Investments -------------------------------------------------------------------------------- As of December 31, 1999 (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- 93.4% -------------------------------------------------------------------------------- Common Stock -- 53.6% --------------------- Airlines -- 0.3% 20 Southwest Airlines, Inc $ 331 Biotechnology--2.8% 33 Amgen, Inc. * 1,972 9 Biogen, Inc. * 746 5 Genzyme Corp. (General Division) * 203 ----- 2,921 Broadcasting/Cable -- 0.3% 3 Clear Channel Communications, Inc. * 272 Computer Networks -- 1.8% 17 Cisco Systems, Inc. * 1,840 Computer Software -- 3.8% 4 Citrix Systems, Inc. * 535 30 Microsoft Corp. * 3,470 ----- 4,005 Computers/Computer Hardware -- 4.7% 21 Dell Computer Corp. * 1,049 22 EMC Corp. * 2,391 14 International Business Machines Corp. 1,490 ----- 4,930 Consumer Products -- 1.5% 10 Gillette Co. 398 11 Procter & Gamble Co. 1,159 ----- 1,557 Diversified -- 3.2% 18 General Electric Co. 2,843 12 Tyco International LTD (Bermuda) 467 ----- 3,310 Electronics/Electrical Equipment -- 1.1% 12 Solectron Corp. * 1,103 Financial Services -- 3.0% 4 American Express Co. 582 25 Charles Schwab Corp. 962 8 Merrill Lynch & Co., Inc. 676 6 Morgan Stanley Dean Witter & Co. 896 ----- 3,116 Food/Beverage Products -- 1.4% 3 Anheuser-Busch Companies, Inc. 188 14 Coca-Cola, Co. 794 12 PepsiCo, Inc. 436 ----- 1,418 Health Care/Health Care Services -- 0.4% 4 Guidant Corp. * 203 5 Medtronic, Inc. 186 ----- 389 Insurance -- 0.5% 5 American International Group, Inc. 558 Internet Services/Software -- 1.8% 25 America Online, Inc. * 1,886 Machinery & Engineering Equipment -- 2.0% 17 Applied Materials, Inc. * 2,132
See notes to financial statements. 41 CHASE BALANCED FUND Portfolio of Investments (Continued) As of December 31, 1999 (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- Continued -------------------------------------------------------------------------------- Multi-Media -- 0.9% 13 Time Warner, Inc. $ 945 Pharmaceuticals -- 5.3% 9 Abbot Laboratories 315 10 American Home Products Corp. 404 12 Bristol-Myers Squibb Co. 757 8 Eli Lilly & Co. 545 8 Johnson & Johnson 733 15 Merck & Co., Inc. 1,020 23 Pfizer, Inc. 740 12 Schering-Plough Corp. 513 7 Warner-Lambert Co. 586 ------ 5,613 Restaurants/Food Services -- 0.2% 5 McDonald's Corp. 210 Retailing -- 5.4% 12 Bed Bath & Beyond, Inc. * 414 7 Best Buy Co., Inc. * 374 24 Gap, Inc. 1,104 13 Home Depot, Inc. 913 33 Kroger Co. * 631 32 Wal-Mart Stores, Inc. 2,230 ------ 5,666 Semi-Conductors -- 5.4% 28 Intel Corp. 2,297 10 KLA-Tencor Corp. * 1,158 15 Novellus Systems, Inc. * 1,844 4 Texas Instruments, Inc. 388 ------ 5,687 Telecommunications -- 5.1% 27 AT&T Corp. 1,363 7 Bell Atlantic Corp. 439 9 BellSouth Corp. 407 5 GTE Corp. 333 12 MCI WorldCom, Inc. * 647 6 Nextel Communications, Inc., Class A * 578 18 SBC Communications, Inc. 901 6 Sprint Corp. (FON Group) 385 6 Vodafone AirTouch PLC, ADR (United Kingdom) 309 ------ 5,362 Telecommunications Equipment -- 2.7% 21 Lucent Technologies, Inc. 1,603 9 Motorola, Inc. 1,277 ------ 2,880 -------------------------------------------------------------------------------- Total Common Stock 56,131 (Cost $31,009) --------------------------------------------------------------------------------
See notes to financial statements. 42 CHASE BALANCED FUND Portfolio of Investments (Continued) As of December 31, 1999 (Amounts in Thousands)
Principal Amount Issuer Value ------------------------------------------------------------------------------------- Long-Term Investments -- Continued ------------------------------------------------------------------------------------- U.S. Treasury Securities -- 15.8% --------------------------------- U.S. Treasury Notes & Bonds, 2,500 5.25%, 05/15/04 $2,395 4,200 5.63%, 02/15/06 4,018 1,000 5.88%, 11/15/05 971 7,035 6.25%, 08/15/23 6,633 2,000 6.38%, 03/31/01 2,004 625 6.50%, 11/15/26 609 --------------------------------------------------------------------- Total U.S. Treasury Securities 16,630 (Cost $17,800) --------------------------------------------------------------------- U.S. Government Agency Securities -- 4.2% ----------------------------------------- 1,000 Federal Home Loan Bank, 4.88%, 01/22/02 968 3,650 Federal National Mortgage Association, 6.38%, 06/15/09 3,485 --------------------------------------------------------------------- Total U.S. Government Agency Securities 4,453 (Cost $4,594) --------------------------------------------------------------------- Corporate Notes & Bonds -- 19.8% -------------------------------- Automotive -- 2.8% 1,425 DaimlerChrysler North America Holdings Corp., MTN, 6.63%, 09/21/01 1,418 225 Ford Motor Credit Co., 6.25%, 12/08/05 213 1,500 General Motors Acceptance Corp., 5.85%, 01/14/09 1,325 ------ 2,956 Banking -- 2.2% 1,950 Bank One Corp., 6.40%, 08/01/02 1,917 400 BankAmerica Corp., 6.20%, 02/15/06 377 ------ 2,294 Biotechnology -- 0.9% 1,100 Monsanto Co., #, 5.88%, 12/01/08 984 Computers/Computer Hardware -- 1.4% 1,425 IBM Credit Corp., MTN, 6.35%, 08/30/01 1,413 Consumer Products -- 0.3% 325 Procter & Gamble Co., 6.45%, 01/15/26 287 Financial Services -- 4.4% 20 American General Finance Corp., MTN, 6.04%, 07/02/01 20 500 Associates Corp. of North America, MTN, 7.52%, 03/29/00 502 1,625 Household Finance Corp., 5.88%, 09/25/04 1,533 1,265 International Lease Finance Corp., MTN, 8.35%, 02/04/02 1,296 1,330 Merrill Lynch & Co., Inc., MTN, 5.71%, 01/15/02 1,299 ------ 4,650 Food/Beverage Products -- 0.5% 500 Anheuser-Busch Companies, Inc., 6.75%, 08/01/03 497 Machinery & Engineering Equipment -- 1.3% 1,425 Caterpillar Financial Services Corp., MTN, 5.89%, 06/17/02 1,391 Oil & Gas -- 2.0% 2,200 BP Amoco PLC, (United Kingdom), 6.50%, 08/01/07 2,106 Pharmaceuticals -- 0.5% 600 Abbott Laboratories, 5.60%, 10/01/03 570
See notes to financial statements. 43 CHASE BALANCED FUND Portfolio of Investments (Continued) As of December 31, 1999 (Amounts in Thousands)
Principal Amount Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- Continued -------------------------------------------------------------------------------- Restaurants/Food Services -- 0.4% 450 McDonald's Corp., 7.05%, 11/15/25 $ 408 Retailing -- 3.1% 1,500 Safeway, Inc., 7.25%, 09/15/04 1,486 1,775 Wal-Mart Stores, Inc., 6.55%, 08/10/04 1,745 -------- 3,231 -------------------------------------------------------------------- Total Corporate Notes & Bonds 20,787 (Cost $21,346) -------------------------------------------------------------------------------- Total Long-Term Investments 98,001 (Cost $74,749) -------------------------------------------------------------------------------- Short-Term Investments -- 6.4% --------------------------------------------------------------------------------- Repurchase Agreement -- 6.4% ---------------------------- 6,763 Greenwich Capital Markets, Inc., in a joint trading account at 3.50%, due 01/03/00 (Dated 12/31/99, Proceeds $6,765, Secured by FHLMC, $7,071, 5.75%, due 09/15/22; Market Value $6,903) 6,763 (Cost $6,763) -------------------------------------------------------------------------------- Total Investments -- 99.8% $104,764 (Cost $81,512) --------------------------------------------------------------------------------
See notes to financial statements. 44 -------------------------------------------------------------------------------- CHASE EQUITY INCOME FUND Portfolio of Investments -------------------------------------------------------------------------------- As of December 31, 1999 (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- 92.3% -------------------------------------------------------------------------------- Common Stock -- 92.3% --------------------- Automotive -- 1.8% 32 Ford Motor Co. $1,689 21 General Motors Corp. 1,526 ------ 3,215 Banking -- 4.6% 80 Bank of New York Co., Inc. 3,184 14 J.P. Morgan & Co. 1,798 44 SunTrust Banks, Inc. 3,028 ------ 8,010 Biotechnology -- 1.0% 51 Monsanto Co. 1,806 Chemicals -- 2.5% 15 Dow Chemical Co. 2,044 34 E.I. DuPont de Nemours Co. 2,227 ------ 4,271 Computer Networks -- 1.6% 26 Cisco Systems, Inc. * 2,828 Computer Software -- 3.7% 56 Microsoft Corp. * 6,480 Computers/Computer Hardware -- 4.6% 20 Hewlett-Packard Co. 2,267 53 International Business Machines Corp. 5,735 ------ 8,002 Consumer Products -- 3.5% 31 Gillette Co. 1,269 26 Philip Morris Companies, Inc. 603 39 Procter & Gamble Co. 4,272 ------ 6,144 Diversified -- 4.2% 47 General Electric Co. 7,344 Financial Services -- 8.7% 23 American Express Co. 3,874 93 Citigroup, Inc. 5,179 23 Merrill Lynch & Co., Inc. 1,954 28 Morgan Stanley Dean Witter & Co. 3,997 ------ 15,004 Food/Beverage Products -- 5.2% 29 Anheuser-Busch Companies, Inc. 2,027 34 Coca-Cola, Co. 1,986 32 PepsiCo, Inc. 1,124 98 Sysco Corp. 3,866 ------ 9,003 Insurance -- 3.1% 50 American International Group, Inc. 5,383 Machinery & Engineering Equipment -- 1.6% 63 Dover Corp. 2,859 Manufacturing -- 0.7% 22 Honeywell International Inc. 1,281 Multi-Media -- 0.5% 31 The Walt Disney Co. 916
See notes to financial statements. 45 CHASE EQUITY INCOME FUND Portfolio of Investments (Continued) As of December 31, 1999 (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- Continued -------------------------------------------------------------------------------- Oil & Gas -- 9.4% 49 BP Amoco PLC, ADR (United Kingdom) $ 2,928 28 Chevron Corp. 2,416 56 Enron Corp. 2,476 41 Exxon Mobil Corp. 3,307 46 Royal Dutch Petroleum Co., N.Y. Registered Shares (Netherlands) 2,754 8 Schlumberger LTD 467 32 Texaco, Inc. 1,711 2 Transocean Sedco Forex Inc. 54 ------- 16,113 Paper/Forest Products -- 0.7% 23 International Paper Co. 1,281 Pharmaceuticals -- 9.9% 45 Abbot Laboratories 1,645 41 American Home Products Corp. 1,629 52 Bristol-Myers Squibb Co. 3,306 44 Eli Lilly & Co. 2,933 20 Johnson & Johnson 1,853 34 Merck & Co., Inc. 2,253 104 Pfizer, Inc. 3,379 ------- 16,998 Retailing -- 4.1% 38 Home Depot, Inc. 2,571 67 Wal-Mart Stores, Inc. 4,597 ------- 7,168 Semi-Conductors -- 5.0% 53 Intel Corp. 4,395 45 Texas Instruments, Inc. 4,340 ------- 8,735 Shipping/Transportation -- 0.9% 42 Norfolk Southern Corp. 851 17 Union Pacific Corp. 733 ------- 1,584 Telecommunications -- 8.1% 47 AT&T Corp. 2,367 30 Bell Atlantic Corp. 1,847 43 BellSouth Corp. 1,994 25 GTE Corp. 1,757 40 MCI WorldCom, Inc. * 2,117 81 SBC Communications, Inc. 3,956 ------- 14,038 Telecommunications Equipment -- 4.8% 68 Lucent Technologies, Inc. 5,075 23 Motorola, Inc. 3,343 ------- 8,418 Utilities -- 2.1% 55 DQE, Inc. 1,894 35 Duke Energy Corp. 1,744 ------- 3,638 -------------------------------------------------------------------------------- Total Long-Term Investments 160,519 (Cost $98,045) --------------------------------------------------------------------------------
See notes to financial statements. 46 CHASE EQUITY INCOME FUND Portfolio of Investments (Continued) As of December 31, 1999 (Amounts in Thousands)
Principal Amount Issuer Value ---------------------------------------------------------------------------------- Short-Term Investments -- 8.7% ---------------------------------------------------------------------------------- Repurchase Agreement -- 8.7% ---------------------------- $ 15,040 Greenwich Capital Markets, Inc., in a joint trading account at 3.50%, due 01/03/00, (Dated 12/31/99, Proceeds $15,044, Secured by FHLMC, $16,156, 5.75% through 6.00%, due 09/15/22 through 02/15/27; Mar- ket Value $15,344) $ 15,040 (Cost $15,040) ---------------------------------------------------------------------------------- Total Investments -- 101.0% $175,559 (Cost $113,085) ----------------------------------------------------------------------------------
See notes to financial statements. 47 -------------------------------------------------------------------------------- CHASE SMALL CAPITALIZATION FUND Portfolio of Investments -------------------------------------------------------------------------------- As of December 31, 1999 (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- 94.6% -------------------------------------------------------------------------------- Common Stock -- 94.6% --------------------- Advertising -- 0.6% 5 Catalina Marketing Corp. * $ 567 Aerospace -- 0.9% 47 AAR Corp. 847 Automotive -- 2.5% 40 Lithia Motors, Inc., Class A * 706 50 O'Reilly Automotive, Inc. * 1,065 35 Tower Automotive, Inc. * 540 ----- 2,311 Banking -- 5.0% 18 Amcore Financial, Inc. 432 14 Chittenden Corp. 415 23 City National Corp. 764 20 Commerce Bancorp., Inc. 793 33 Cullen/Frost Bankers, Inc. 856 10 First Washington Bancorp, Inc. 151 15 Investors Financial Services Corp. 672 5 ISB Financial Corp. 72 11 ITLA Capital Corp. * 137 20 Trustmark Corp. 428 ----- 4,720 Broadcasting/Cable -- 1.9% 24 Westwood One, Inc. * 1,807 Business Services -- 6.0% 30 ACNielsen Corp. * 726 39 Iron Mountain, Inc. * 1,533 67 NFO Worldwide, Inc. * 1,506 70 Profit Recovery Group International * 1,860 ----- 5,625 Chemicals -- 2.0% 59 Spartech Corp. 1,911 Computer Networks -- 5.9% 28 Black Box Corp. * 1,846 26 Micros Systems, Inc. * 1,946 46 National Computer Systems Inc. 1,723 ----- 5,515 Computer Software -- 2.3% 75 Activision, Inc. * 1,141 31 Dendrite International Inc. * 1,050 ----- 2,191 Construction -- 0.7% 15 Dycom Industries Inc. * 643 Construction Materials -- 1.8% 79 Dal-Tile International Inc. * 796 28 Elcor Corp. 846 ----- 1,642
See notes to financial statements. 48 CHASE SMALL CAPITALIZATION FUND Portfolio of Investments (Continued) As of December 31, 1999 (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- Continued -------------------------------------------------------------------------------- Electronics/Electrical Equipment--12.5% 43 Artesyn Technologies, Inc. * $ 896 37 CTS Corp. 2,810 24 Hadco Corp. * 1,244 21 OAK Industries, Inc. * 2,229 26 PerkinElmer, Inc. 1,076 14 Technitrol, Inc. 641 44 Varian, Inc. * 981 62 Vishay Intertechnology, Inc. * 1,947 ------ 11,824 Engineering Services -- 0.5% 14 Jacobs Engineering Group, Inc. * 466 Entertainment/Leisure -- 2.5% 61 Cinar Corp., Class B (Canada) * 1,505 39 Station Casinos, Inc. * 868 ------ 2,373 Financial Services -- 0.3% 2 SEI Investments Co. 244 Food/Beverage Products -- 0.6% 23 Performance Food Group Co. * 551 Health Care/Health Care Services -- 8.3% 30 Cooper Companies, Inc. 895 24 Datascope Corp. 948 34 Hooper Holmes, Inc. 868 45 MedQuist, Inc. * 1,151 44 Molecular Devices Corp. * 2,300 49 Osteotech, Inc. * 659 40 Ventana Medical Systems * 983 ------ 7,804 Insurance -- 2.5% 16 Annuity and Life Re, LTD (Bermuda) 423 9 Arthur J. Gallagher & Co. 550 15 Brown & Brown, Inc. 590 26 Delphi Financial Group, Inc., Class A * 785 ------ 2,348 Machinery & Engineering Equipment -- 6.0% 19 Cognex Corp. * 749 38 Gerber Scientific, Inc. 823 44 PRI Automation, Inc. * 2,970 19 Zebra Technologies Corp., Class A * 1,088 ------ 5,630 Manufacturing -- 3.3% 10 Optical Coating Laboratory, Inc. 3,064 Oil & Gas -- 3.9% 24 Atwood Oceanics * 939 48 Louis Dreyfus Natural Gas * 862 60 Pride International, Inc. * 879 16 St. Mary Land & Exploration 407 46 Vintage Petroleum, Inc. * 551 ------ 3,638
See notes to financial statements. 49 CHASE SMALL CAPITALIZATION FUND Portfolio of Investments (Continued) As of December 31, 1999 (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- Continued -------------------------------------------------------------------------------- Pharmaceuticals -- 4.2% 50 Advance Paradigm, Inc. * $ 1,082 10 Idec Pharmaceuticals Corp. * 983 33 King Pharmaceuticals, Inc. * 1,850 ------- 3,915 Real Estate Investment Trust -- 1.3% 39 Alexandria Real Estate Equities 1,234 Restaurants/Food Services -- 1.4% 63 Jack in the Box, Inc. * 1,304 Retailing -- 6.0% 26 Ames Department Stores, Inc. * 761 53 BJ's Wholesale Club Inc. * 1,921 40 Chico's FAS, Inc. * 1,513 22 Pacific Sunwear of California * 708 34 Wild Oats Markets, Inc. * 752 ------- 5,655 Semi-Conductors -- 3.9% 76 Actel Corp. * 1,831 16 Cree Research, Inc. * 1,332 7 Dallas Semiconductor Corp. 477 ------- 3,640 Shipping/Transportation -- 1.1% 16 C.H. Robinson Worldwide, Inc. 634 17 MS Carriers, Inc. * 411 ------- 1,045 Telecommunications -- 1.1% 36 Price Communications Corp. * 990 Telecommunications Equipment -- 3.3% 16 Antec Corp. * 582 17 Comverse Technology, Inc. * 2,497 ------- 3,079 Utilities -- 2.3% 19 AGL Resources, Inc. 315 22 American States Water Co. 780 3 E'town Corp. 181 17 Laclede Gas Co. 360 17 Northwest Natural Gas Co. 365 5 United Water Resources, Inc. 173 ------- 2,174 -------------------------------------------------------------------------------- Total Long-Term Investments 88,757 (Cost $64,820) -------------------------------------------------------------------------------- Short-Term Investments -- 5.4% --------------------------------------------------------------------------------
Principal Amount Repurchase Agreement -- 5.4% ---------------------------- $5,020 Greenwich Capital Markets, Inc., in a joint trading account at 3.50%, due 01/03/00, (Dated 12/31/99, Proceeds $5,021, Secured by FNMA, $4,974, FRN, due 07/18/27; Market Value $5,121) 5,020 (Cost $5,020) -------------------------------------------------------------------------------- Total Investments -- 100.0% $93,777 (Cost $69,840) --------------------------------------------------------------------------------
See notes to financial statements. 50 Portfolio of Investments (Continued) INDEX: * -- Non-income producing security. - -- All or portion of this security is segregated for delayed delivery securities. # -- Security may only be sold to qualified institutional buyers. ADR -- American Depositary Receipt. Discount Commercial Paper -- The rate shown is the effective yield at the date of purchase. DN -- Discount Note. The rate shown is the effective yield at the date of purchase. FHLMC -- Federal Home Loan Mortgage Corporation. FNMA -- Federal National Mortgage Association. FRDN -- Floating Rate Demand Note. The maturity date shown is the next interest rate reset date; the rate shown is the rate in effect at December 31, 1999. FRN -- Floating Rate Note. The maturity date shown is actual maturity date; the rate shown is the rate in effect at December 31, 1999. MTN -- Medium Term Note. SUB -- Step-Up Bond. The maturity date shown is the call date; the rate shown is the rate in effect at December 31, 1999. 51 -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES As of December 31, 1999 -------------------------------------------------------------------------------- (Amounts in Thousands, Except Per Share Amounts)
Short- Intermediate Term U.S. U.S. Money Government Intermediate Government Market Securities Term Bond Securities Fund Fund Fund Fund ASSETS: Investment securities, at value (Note 1) .................... $294,076 $31,535 $39,393 $7,682 Cash .............................. -- 1 2 -- Receivables: Fund shares sold ................. 1,095 2 196 1 Interest/Dividends ............... 1,861 332 414 84 Expense reimbursement from Distributor ................. -- -- -- 15 ------------------------------------------------------------------------------------------- Total Assets ................... 297,032 31,870 40,005 7,782 ------------------------------------------------------------------------------------------- LIABILITIES: Payables: To Custodian ..................... 3 -- -- 3 Fund shares redeemed ............. 180 -- -- -- Dividends payable ................ 361 3 10 1 Accrued liabilities: (Note 2) Investment advisory fees ......... 59 3 5 -- Administration fees .............. 37 4 5 -- Custody and accounting fees ............................. 14 16 22 8 Other ............................ 98 16 68 31 ------------------------------------------------------------------------------------------- Total Liabilities .............. 752 42 110 43 ------------------------------------------------------------------------------------------- NET ASSETS: Paid in capital ................... 296,279 32,507 41,724 8,168 Accumulated undistributed net investment income ............ 3 2 3 -- Accumulated net realized loss on investments ............... (2) (184) (870) (333) Net unrealized depreciation of investments .................... -- (497) (962) (96) ------------------------------------------------------------------------------------------- Net Assets ..................... $296,280 $31,828 $39,895 $7,739 ------------------------------------------------------------------------------------------- Shares of beneficial interest outstanding ($.001 par value; unlimited number of shares authorized) Premier Shares .................... 296,120 2,636 3,270 599 Investor Shares ................... 159 6 38 4 Net Asset Value, maximum offering and redemption price per share Premier Shares $ 1.00 $ 12.05 $ 12.06 $12.84 Investor Shares ................... $ 1.00 $ 12.04 $ 12.06 $12.84 Cost of Investments ................ $294,076 $32,032 $40,355 $7,778 -------------------------------------------------------------------------------------------
See notes to financial statements. 52 STATEMENT OF ASSETS AND LIABILITIES As of December 31, 1999 (Amounts in Thousands, Except Per Share Amounts)
Equity Small Income Balanced Income Capitalization Fund Fund Fund Fund ASSETS: Investment securities, at value (Note 1) ........................ $84,849 $104,764 $175,559 $93,777 Cash .................................. 4 2 1 1 Receivables: Investment securities sold ........... -- -- -- 482 Fund shares sold ..................... 7 186 38 75 Interest/Dividends ................... 733 809 142 33 ------------------------------------------------------------------------------------------- Total Assets ....................... 85,593 105,761 175,740 94,368 ------------------------------------------------------------------------------------------- LIABILITIES: Payables: Investment securities purchased ............................ 19,249 -- 75 263 Fund shares redeemed ................. 200 632 1,632 195 Dividends payable .................... 18 -- -- -- Accrued liabilities: (Note 2) Investment advisory fees ............. 17 53 99 45 Administration fees .................. 8 13 22 11 Custody and accounting fees .......... 8 17 22 13 Other ................................ 40 100 87 96 ------------------------------------------------------------------------------------------- Total Liabilities .................. 19,540 815 1,937 623 ------------------------------------------------------------------------------------------- NET ASSETS: Paid in capital ....................... 69,625 81,987 111,835 78,465 Accumulated undistributed net investment income ................. 22 149 -- -- Accumulated net realized loss on investments ........................ (2,629) (442) (506) (8,657) Net unrealized appreciation (depreciation) of investments ......... (965) 23,252 62,474 23,937 ------------------------------------------------------------------------------------------- Net Assets ......................... $66,053 $104,946 $173,803 $93,745 ------------------------------------------------------------------------------------------- Shares of beneficial interest outstanding ($.001 par value; unlimited number of shares authorized) Premier Shares ........................ 3,503 2,681 3,415 4,109 Investor Shares ....................... 27 45 75 40 Net Asset Value, maximum offering and redemption price per share Premier Shares ........................ $ 18.71 $ 38.50 $ 49.80 $ 22.60 Investor Shares ....................... $ 18.72 $ 38.46 $ 49.83 $ 22.51 Cost of Investments .................... $85,814 $ 81,512 $113,085 $69,840 -------------------------------------------------------------------------------------------
See notes to financial statements. 53 STATEMENT OF ASSETS AND LIABILITIES As of December 31, 1999 (Amounts in Thousands, Except Per Share Amounts)
Equity Core Equity Growth Fund Fund ASSETS: Investment in Portfolio, at value (Note 1) ........................... $186,884 $334,025 Receivable for fund shares sold .......... 162 985 -------------------------------------------------------------------------------- Total Assets .......................... 187,046 335,010 -------------------------------------------------------------------------------- LIABILITIES: Payable for fund shares redeemed ......... 42 159 Accrued liabilities: (Note 2) Administration fees ..................... 15 27 Other ................................... 100 81 -------------------------------------------------------------------------------- Total Liabilities ..................... 157 267 -------------------------------------------------------------------------------- Paid in capital .......................... 126,272 194,432 Accumulated net realized gain (loss) on investments ........................... 2,227 (877) Net unrealized appreciation of investments ........................... 58,390 141,188 -------------------------------------------------------------------------------- Net Assets ............................ $186,889 $334,743 -------------------------------------------------------------------------------- Shares of beneficial interest outstanding ($.001 par value; unlimited number of shares authorized) Premier Shares ........................... 5,607 4,696 Investor Shares .......................... 191 221 Net Asset Value, maximum offering and redemption price per share Premier Shares ........................... $ 32.24 $ 68.09 Investor Shares .......................... $ 32.19 $ 67.85 --------------------------------------------------------------------------------
See notes to financial statements. 54 -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS For the year ended December 31, 1999 -------------------------------------------------------------------------------- (Amounts in Thousands)
Short- Intermediate Term U.S. U.S. Money Government Intermediate Government Market Securities Term Bond Securities Fund Fund Fund Fund --------------------------------------------------------------------------------------------------- INTEREST INCOME ..................... $12,274 $1,777 $2,240 $ 368 ---------------------------------------------------------------------------------------------- EXPENSES: (Note 2) Investment advisory fees ........... 693 159 184 33 Administration fees ................ 347 48 55 10 Distribution fees .................. -- -- 1 -- Custody and accounting fees ............................... 53 53 60 38 Printing and postage ............... 70 17 20 6 Professional fees .................. 42 24 35 13 Registration expenses .............. 64 20 38 23 Transfer agent fees ................ 57 48 51 44 Trustees' fees ..................... 8 1 1 -- Other .............................. 26 4 9 9 ---------------------------------------------------------------------------------------------- Total expenses .................. 1,360 374 454 176 ---------------------------------------------------------------------------------------------- Less amounts waived (Note 2D) .......................... 187 119 160 43 Less expense reimbursements ..................... 18 16 17 84 ---------------------------------------------------------------------------------------------- Net expenses ..................... 1,155 239 277 49 ---------------------------------------------------------------------------------------------- Net investment income .......................... 11,119 1,538 1,963 319 ---------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized loss on investment transactions ............ (1) (174) (865) (333) Change in net unrealized appreciation/depreciation of investments ..................... -- (1,131) (1,474) (128) ---------------------------------------------------------------------------------------------- Net realized and unrealized loss on investments ..................... (1) (1,305) (2,339) (461) ---------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations ......... $11,118 $ 233 $ (376) $(142) ----------------------------------------------------------------------------------------------
See notes to financial statements. 55 STATEMENT OF OPERATIONS For the year ended December 31, 1999 (Amounts in Thousands)
Equity Small Income Balanced Income Capitalization Fund Fund Fund Fund --------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest .............................. $ 3,960 $ 2,467 $ 399 $ 225 Dividend .............................. -- 239 2,116 424 Foreign taxes withheld ................ -- -- (19) -- ------------------------------------------------------------------------------------------ Total investment income ............ 3,960 2,706 2,496 649 ------------------------------------------------------------------------------------------ EXPENSES: (Note 2) Investment advisory fees .............. 328 635 1,128 557 Administration fees ................... 98 127 226 111 Distribution fees ..................... -- 3 4 1 Custody and accounting fees ........... 62 72 78 64 Printing and postage .................. 26 30 61 35 Professional fees ..................... 28 36 38 36 Registration expenses ................. 20 52 45 48 Transfer agent fees ................... 43 58 66 60 Trustees' fees ........................ 2 3 5 3 Other ................................. 13 14 19 15 ------------------------------------------------------------------------------------------ Total expenses ..................... 620 1,030 1,670 930 ------------------------------------------------------------------------------------------ Less amounts waived (Note 2D) ......... 119 161 136 162 Less expense reimbursements ........... 9 19 26 24 ------------------------------------------------------------------------------------------ Net expenses ......................... 492 850 1,508 744 ------------------------------------------------------------------------------------------ Net investment income (loss) ............................. 3,468 1,856 988 (95) ------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investment transactions ............... (2,604) (61) 6,287 (6,607) Change in net unrealized appreciation/depreciation of investments ........................ (2,648) 10,256 10,874 17,986 ------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments ................. (5,252) 10,195 17,161 11,379 ------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations ................ $(1,784) $12,051 $18,149 $11,284 ------------------------------------------------------------------------------------------
See notes to financial statements. 56 STATEMENT OF OPERATIONS For the year ended December 31, 1999 (Amounts in Thousands)
Equity Core Equity Growth Fund* Fund* -------------------------------------------------------------------------------- INVESTMENT INCOME: Interest ................................. $ 186 $ 259 Dividend ................................. 820 771 Investment income from Portfolio ......... 667 815 Foreign taxes withheld ................... (5) (1) Expenses from Portfolio .................. (502) (895) -------------------------------------------------------------------------------- Total investment income ............... 1,166 949 -------------------------------------------------------------------------------- EXPENSES: (Note 2) Investment advisory fees ................. 614 1,000 Administration fees ...................... 188 308 Distribution fees ........................ 5 18 Custody and accounting fees .............. 68 73 Printing and postage ..................... 50 57 Professional fees ........................ 30 27 Registration expenses .................... 61 48 Transfer agent fees ...................... 71 123 Trustees' fees ........................... 4 7 Other .................................... 14 10 -------------------------------------------------------------------------------- Total expenses ........................ 1,105 1,671 -------------------------------------------------------------------------------- Less amounts waived (Note 2D) ............ 101 72 Less expense reimbursements .............. 30 58 -------------------------------------------------------------------------------- Net expenses ............................ 974 1,541 -------------------------------------------------------------------------------- Net investment income (loss) .......... 192 (592) -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions .................. 5,082 4,029 Change in net unrealized appreciation of investments .............. 26,635 69,875 -------------------------------------------------------------------------------- Net realized and unrealized gain on investments ........................... 31,717 73,904 -------------------------------------------------------------------------------- Net increase in net assets from operations ............................... $31,909 $73,312 --------------------------------------------------------------------------------
* See Note 1. See notes to financial statements. 57 -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS For the periods indicated -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS For the periods indicated (Amounts in Thousands)
Money Market Fund ---------------------------- Year Ended December 31, 1999 1998 -------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income ................................ $ 11,119 $ 8,450 Net realized gain (loss) on investment transactions ......................................... (1) (1) Change in net unrealized appreciation/ depreciation of investments .......................... -- -- -------------------------------------------------------------------------------------- Increase (decrease) in net assets from operations ......................................... 11,118 8,449 -------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1) Net investment income ................................ (11,116) (8,450) In excess of net investment income ................... -- -- Net realized gain on investment transactions ......... -- -- In excess of net realized gain on investment transactions ......................................... -- -- -------------------------------------------------------------------------------------- Total distributions to shareholders ................ (11,116) (8,450) -------------------------------------------------------------------------------------- Increase from capital share transactions# 100,785 60,915 -------------------------------------------------------------------------------------- Total increase in net assets ....................... 100,787 60,914 NET ASSETS: Beginning of period .................................. 195,493 134,579 -------------------------------------------------------------------------------------- End of period ........................................ $296,280 $195,493 -------------------------------------------------------------------------------------- Short-Intermediate Term U.S. Government Intermediate Securities Fund Term Bond Fund ----------------------- ----------------------- Year Ended Year Ended December 31, December 31, 1999 1998 1999 1998 --------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income ................................ $ 1,538 $ 1,444 $ 1,963 $ 1,335 Net realized gain (loss) on investment transactions ......................................... (174) 215 (865) 409 Change in net unrealized appreciation/ depreciation of investments .......................... (1,131) 344 (1,474) 138 --------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from operations ......................................... 233 2,003 (376) 1,882 --------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1) Net investment income ................................ (1,538) (1,444) (1,963) (1,335) In excess of net investment income ................... -- (11) -- -- Net realized gain on investment transactions ......... (115) (96) (30) (381) In excess of net realized gain on investment transactions ......................................... -- -- -- -- --------------------------------------------------------------------------------------------------------- Total distributions to shareholders ................ (1,653) (1,551) (1,993) (1,716) --------------------------------------------------------------------------------------------------------- Increase from capital share transactions# 2,684 6,164 9,384 14,119 --------------------------------------------------------------------------------------------------------- Total increase in net assets ....................... 1,264 6,616 7,015 14,285 NET ASSETS: Beginning of period .................................. 30,564 23,948 32,880 18,595 --------------------------------------------------------------------------------------------------------- End of period ........................................ $31,828 $30,564 $39,895 $32,880 ---------------------------------------------------------------------------------------------------------
# See detailed Capital Share Transactions. See notes to financial statements. 58 STATEMENT OF CHANGES IN NET ASSETS For the periods indicated STATEMENT OF CHANGES IN NET ASSETS For the periods indicated (Amounts in Thousands)
U.S. Government Securities Fund Income Fund --------------------- ----------------------- Year Ended Year Ended December 31, December 31. 1999 1998 1999 1998 -------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income ........................... $ 319 $ 155 $ 3,468 $ 2,929 Net realized gain (loss) on investment transactions .................................... (333) 168 (2,604) 1,952 Change in net unrealized appreciation/ depreciation of investments ..................... (128) (59) (2,648) 132 ------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from operations .................................... (142) 264 (1,784) 5,013 ------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1) Net investment income ........................... (319) (155) (3,468) (2,929) In excess of net investment income .............. -- -- -- (18) Net realized gain on investment transactions .... -- (168) (584) (1,353) In excess of net realized gain on investment transactions .................................... -- (2) -- -- ------------------------------------------------------------------------------------------------- Total distributions to shareholders ........... (319) (325) (4,052) (4,300) ------------------------------------------------------------------------------------------------- Increase from capital share transactions# 4,566 767 11,811 8,036 ------------------------------------------------------------------------------------------------- Total increase in net assets .................. 4,105 706 5,975 8,749 NET ASSETS: Beginning of period ............................. 3,634 2,928 60,078 51,329 ------------------------------------------------------------------------------------------------- End of period ................................... $7,739 $3,634 $66,053 $60,078 ------------------------------------------------------------------------------------------------- Equity Balanced Fund Income Fund ------------------------- -------------------------------- Year Ended Year Ended December 31, December 31, 1999 1998 1999 1998 --------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income ........................... $ 1,856 $ 1,085 $ 988 $ 811 Net realized gain (loss) on investment transactions .................................... (61) 2,397 6,287 382 Change in net unrealized appreciation/ depreciation of investments ..................... 10,256 7,274 10,874 22,275 --------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from operations .................................... 12,051 10,756 18,149 23,468 --------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1) Net investment income ........................... (1,710) (1,085) (978) (811) In excess of net investment income .............. -- (2) -- (18) Net realized gain on investment transactions .... (521) (2,053) (6,799) (382) In excess of net realized gain on investment transactions .................................... -- -- -- (5) --------------------------------------------------------------------------------------------------------------- Total distributions to shareholders ........... (2,231) (3,140) (7,777) (1,216) --------------------------------------------------------------------------------------------------------------- Increase from capital share transactions# 36,093 15,058 35,513 30,423 --------------------------------------------------------------------------------------------------------------- Total increase in net assets .................. 45,913 22,674 45,885 52,675 NET ASSETS: Beginning of period ............................. 59,033 36,359 127,918 75,243 --------------------------------------------------------------------------------------------------------------- End of period ................................... $104,946 $59,033 $173,803 $127,918 ---------------------------------------------------------------------------------------------------------------
# See detailed Capital Share Transactions. See notes to financial statements. 59 STATEMENT OF CHANGES IN NET ASSETS For the periods indicated STATEMENT OF CHANGES IN NET ASSETS For the periods indicated (Amounts in Thousands)
Small Core Capitalization Fund Equity Fund ----------------------- ------------------------- Year Ended Year Ended December 31, December 31, 1999 1998 1999 1998 ----------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss) ......................... $ (95) $ (17) $ 192 $ 263 Net realized gain (loss) on investment transactions ......................................... (6,607) 2,044 5,082 3,962 Change in net unrealized appreciation/ depreciation of investments .......................... 17,986 (3,092) 26,635 14,995 ----------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from operations ........................................... 11,284 (1,065) 31,909 19,220 ----------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1) Net investment income ................................ -- -- (192) (263) In excess of net investment income ................... -- -- -- (3) Net realized gain on investment transactions ......... -- (2,044) (3,154) (3,659) In excess of net realized gain on investment transactions .............................. -- (2,080) -- -- ----------------------------------------------------------------------------------------------------------- Total distributions to shareholders ................ -- (4,124) (3,346) (3,925) ----------------------------------------------------------------------------------------------------------- Increase from capital share transactions# 17,669 29,953 69,766 21,868 ----------------------------------------------------------------------------------------------------------- Total increase in net assets ....................... 28,953 24,764 98,329 37,163 NET ASSETS: Beginning of period .................................. 64,792 40,028 88,560 51,397 ----------------------------------------------------------------------------------------------------------- End of period ........................................ $93,745 $64,792 $186,889 $88,560 ----------------------------------------------------------------------------------------------------------- Equity Growth Fund ------------------------- Year Ended December 31, 1999 1998 ----------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss) ......................... $ (592) $ 65 Net realized gain (loss) on investment transactions ......................................... 4,029 6,296 Change in net unrealized appreciation/ depreciation of investments .......................... 69,875 40,718 ----------------------------------------------------------------------------------- Increase (decrease) in net assets from operations ........................................... 73,312 47,079 ----------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1) Net investment income ................................ -- (65) In excess of net investment income ................... -- (15) Net realized gain on investment transactions ......... (4,405) (5,914) In excess of net realized gain on investment transactions .............................. -- -- ----------------------------------------------------------------------------------- Total distributions to shareholders ................ (4,405) (5,994) ----------------------------------------------------------------------------------- Increase from capital share transactions# 85,511 62,510 ----------------------------------------------------------------------------------- Total increase in net assets ....................... 154,418 103,595 NET ASSETS: Beginning of period .................................. 180,325 76,730 ----------------------------------------------------------------------------------- End of period ........................................ $334,743 $180,325 -----------------------------------------------------------------------------------
# See detailed Capital Share Transactions. See notes to financial statements. 60 -------------------------------------------------------------------------------- CHASE FUNDS Capital Share Transactions -------------------------------------------------------------------------------- MONEY MARKET FUND For the periods indicated (Amounts in Thousands)
------------------------------------------------------------------------------------------------------ Premier Shares Investor Shares ------------------------------------------------------------------------------------------------------ Year Ended December 31, 1999 Amount Shares Amount Shares ------------------------------------------------------------------------------------------------------ Shares sold $ 329,869 329,869 $215 215 Shares issued in reinvestment of distributions 8,626 8,626 4 4 Shares redeemed (237,852) (237,852) (77) (77) ------------------------------------------------------------------------------------------------------ Net increase in Fund shares outstanding $ 100,643 100,643 $142 142 ====================================================================================================== Year Ended December 31, 1998* ------------------------------------------------------------------------------------------------------ Shares sold $ 241,189 241,189 $ 17 17 Shares issued in reinvestment of distributions 6,713 6,713 -- -- Shares redeemed (187,004) (187,004) -- -- ------------------------------------------------------------------------------------------------------ Net increase in Fund shares outstanding $ 60,898 60,898 $ 17 17 ======================================================================================================
SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND
-------------------------------------------------------------------------------------------------------- Premier Shares Investor Shares -------------------------------------------------------------------------------------------------------- Year Ended December 31, 1999 Amount Shares Amount Shares -------------------------------------------------------------------------------------------------------- Shares sold $10,757 872 $ 77 6 Shares issued in reinvestment of distributions 1,622 132 1 -- Shares redeemed (9,760) (794) (13) (1) ------------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 2,619 210 $ 65 5 ======================================================================================================= Year Ended December 31, 1998** Shares sold $11,638 931 $ 10 1 Shares issued in reinvestment of distributions 1,293 103 -- -- Shares redeemed (6,777) (540) -- -- ------------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 6,154 494 $ 10 1 =======================================================================================================
*For Investor shares, from commencement of offering on November 9, 1998. **For Investor shares, from commencement of offering on November 10, 1998. See notes to financial statements. 61 -------------------------------------------------------------------------------- CHASE FUNDS Capital Share Transactions -------------------------------------------------------------------------------- INTERMEDIATE TERM BOND FUND For the periods indicated (Amounts in Thousands)
--------------------------------------------------------------------------------------------------- Premier Shares Investor Shares --------------------------------------------------------------------------------------------------- Year Ended December 31, 1999 Amount Shares Amount Shares --------------------------------------------------------------------------------------------------- Shares sold $16,653 1,339 $482 39 Shares issued in reinvestment of distributions 1,892 153 12 1 Shares redeemed (9,622) (776) (33) (3) --------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 8,923 716 $461 37 =================================================================================================== Year Ended December 31, 1998* Shares sold $20,306 1,576 $ 10 1 Shares issued in reinvestment of distributions 1,431 111 -- -- Shares redeemed (7,628) (591) -- -- --------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $14,109 1,096 $ 10 1 ===================================================================================================
U.S. GOVERNMENT SECURITIES FUND
------------------------------------------------------------------------------------------ Premier Shares Investor Shares ------------------------------------------------------------------------------------------ Year Ended December 31, 1999 Amount Shares Amount Shares ------------------------------------------------------------------------------------------ Shares sold $ 6,505 489 $ 56 4 Shares issued in reinvestment of distributions 316 24 2 -- Shares redeemed (2,303) (176) (10) (1) ------------------------------------------------------------------------------------------ Net increase in Fund shares outstanding $ 4,518 337 $ 48 3 ========================================================================================== Year Ended December 31, 1998* Shares sold $ 1,942 135 $ 10 1 Shares issued in reinvestment of distributions 286 21 1 -- Shares redeemed (1,472) (103) -- -- ------------------------------------------------------------------------------------------ Net increase in Fund shares outstanding $ 756 53 $ 11 1 ==========================================================================================
*For Investor shares, from commencement of offering on November 10, 1998. See notes to financial statements. 62 -------------------------------------------------------------------------------- CHASE FUNDS Capital Share Transactions -------------------------------------------------------------------------------- INCOME FUND For the periods indicated (Amounts in Thousands)
Premier Shares Investor Shares ------------------------------------------------------------------------------------------------ Year Ended December 31, 1999 Amount Shares Amount Shares ------------------------------------------------------------------------------------------------ Shares sold $ 25,281 1,289 $586 30 Shares issued in reinvestment of distributions 3,825 198 10 1 Shares redeemed (17,803) (918) (88) (5) ------------------------------------------------------------------------------------------------ Net increase in Fund shares outstanding $ 11,303 569 $508 26 ================================================================================================ Year Ended December 31, 1998* Shares sold $ 20,818 1,014 $ 10 1 Shares issued in reinvestment of distributions 3,601 175 1 -- Shares redeemed (16,394) (798) -- -- ------------------------------------------------------------------------------------------------ Net increase in Fund shares outstanding $ 8,025 391 $ 11 1 ================================================================================================
BALANCED FUND
--------------------------------------------------------------------------------------------------- Premier Shares Investor Shares --------------------------------------------------------------------------------------------------- Year Ended December 31, 1999 Amount Shares Amount Shares --------------------------------------------------------------------------------------------------- Shares sold $ 54,740 1,536 $ 4,478 124 Shares issued in reinvestment of distributions 2,202 61 28 1 Shares redeemed (22,470) (625) (2,885) (81) --------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 34,472 972 $ 1,621 44 =================================================================================================== Year Ended December 31, 1998** Shares sold $ 29,750 934 $ 17 1 Shares issued in reinvestment of distributions 3,139 94 1 -- Shares redeemed (17,849) (562) -- -- --------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 15,040 466 $ 18 1 ===================================================================================================
*For Investor shares, from commencement of offering on November 10, 1998. **For Investor shares, from commencement of offering on October 16, 1998. See notes to financial statements. 63 -------------------------------------------------------------------------------- CHASE FUNDS Capital Share Transactions -------------------------------------------------------------------------------- EQUITY INCOME FUND For the periods indicated (Amounts in Thousands)
--------------------------------------------------------------------------------------------------- Premier Shares Investor Shares --------------------------------------------------------------------------------------------------- Year Ended December 31, 1999 Amount Shares Amount Shares --------------------------------------------------------------------------------------------------- Shares sold $ 55,841 1,131 $4,015 81 Shares issued in reinvestment of distributions 7,374 151 145 3 Shares redeemed (31,339) (637) (523) (11) --------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 31,876 645 $3,637 73 =================================================================================================== Year Ended December 31, 1998* Shares sold $ 49,582 1,208 $ 68 2 Shares issued in reinvestment of distributions 1,190 28 -- -- Shares redeemed (20,417) (501) -- -- --------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 30,355 735 $ 68 2 ===================================================================================================
SMALL CAPITALIZATION FUND
Premier Shares Investor Shares Year Ended December 31, 1999 Amount Shares Amount Shares Shares sold $34,842 1,764 776 41 hSares issued in reinvestment of distributions -- -- -- -- Shares redeemed (17,865) (898) (84) (4) --------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $16,977 866 $692 37 =================================================================================================== Year Ended December 31, 1998** Shares sold $38,507 1,806 $ 45 3 Shares issued in reinvestment of distributions 3,988 210 3 -- Shares redeemed (12,590) (611) -- -- --------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $29,905 1,405 $ 48 3 ===================================================================================================
*For Investor shares, from commencement of offering on August 24, 1998. **For Investor shares, from commencement of offering on August 12, 1998. See notes to financial statements. 64 -------------------------------------------------------------------------------- CHASE FUNDS Capital Share Transactions -------------------------------------------------------------------------------- CORE EQUITY FUND For the periods indicated (Amounts in Thousands)
---------------------------------------------------------------------------------------------------- Premier Shares Investor Shares --------------------------------------------------------------------------------------------------- Year Ended December 31, 1999 Amount Shares Amount Shares --------------------------------------------------------------------------------------------------- Shares sold $ 99,241 3,481 $6,109 205 Shares issued in reinvestment of distributions 3,169 102 68 2 Shares redeemed (38,291) (1,315) (530) (17) ------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 64,119 2,268 $5,647 190 =================================================================================================== Year Ended December 31, 1998* Shares sold $ 33,357 1,410 $ 21 1 Shares issued in reinvestment of distributions 3,840 149 1 -- Shares redeemed (15,351) (639) -- -- ------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 21,846 920 $ 22 1 ===================================================================================================
EQUITY GROWTH FUND
--------------------------------------------------------------------------------------------------- Premier Shares Investor Shares --------------------------------------------------------------------------------------------------- Year Ended December 31, 1999 Amount Shares Amount Shares --------------------------------------------------------------------------------------------------- Shares sold $121,695 2,098 $11,697 201 Shares issued in reinvestment of distributions 4,136 63 188 3 Shares redeemed (51,649) (883) (556) (9) --------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 74,182 1,278 $11,329 195 =================================================================================================== Year Ended December 31, 1998** Shares sold $ 80,644 1,862 $ 1,269 28 Shares issued in reinvestment of distributions 5,872 116 44 1 Shares redeemed (25,217) (561) (102) (3) --------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 61,299 1,417 $ 1,211 26 ===================================================================================================
*For Investor shares, from commencement of offering on September 10, 1998. **For Investor shares, from commencement of offering on August 13, 1998. See notes to financial statements. 65 -------------------------------------------------------------------------------- CHASE FUNDS NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- 1. Organization and Significant Accounting Policies Mutual Fund Investment Trust (the "Trust") was organized on September 23, 1997 as a Massachusetts Business Trust, and is registered under the Investment Company Act of 1940, as amended, (the "1940 Act") as an open-end management investment company. Chase Money Market Fund ("MMF"), Chase Short-Intermediate Term U.S. Government Securities Fund ("STGSF"), Chase Intermediate Term Bond Fund ("ITBF"), Chase U.S. Government Securities Fund ("GSF"), Chase Income Fund ("IF"), Chase Balanced Fund ("BF"), Chase Equity Income Fund ("EIF"), Chase Small Capitalization Fund ("SCF"), Chase Core Equity Fund ("CEF") and Chase Equity Growth Fund ("EGF"), collectively the "Funds", are separate series of the Trust. Each Fund offers Premier and Investor classes of shares. All classes of shares have equal voting rights as to earnings, assets and voting privileges, except that each class may bear different transfer agent, distribution, and shareholder servicing expenses, and each class has exclusive voting rights with respect to its distribution plan and shareholder servicing agreement. Premier Shares may be purchased only by Financial Intermediaries who are able to meet the minimum investment requirement. The Funds were established on January 1, 1998 for the conversion of the AVESTA Trust to the newly created Chase Funds of the Mutual Fund Investment Trust. AVESTA Trust contributed securities and other assets (net of liabilities) in a tax-free exchange for shares of the corresponding portfolio of the newly created Funds. The Chase Manhattan Bank agreed to bear all costs related to conversion. On August 12, 1999, CEF and EGF adopted Master Feeder Fund Structures by contributing substantially all of their assets and liabilities to Core Equity Portfolio ("CEP") and Equity Growth Portfolio ("EGP"), respectively (collectively, the "Portfolios") in a tax-free exchange for beneficial ownership of those Portfolios. Investment income and expenses from the Portfolios are for the period August 12, 1999 to December 31, 1999. Realized gains on investments transactions include $4,897,914 and $4,029,324, respectively from CEP and EGP. The following is a summary of significant accounting policies followed by the Funds: The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. A. CEF and EGF CEF and EGF utilize the Master Feeder Fund Structure and seek to achieve their investment objectives by investing all of their investable assets in CEP and EGP, respectively, which like the Funds, are open-end management investment companies having the same investment objectives as the Funds. As of December 31, 1999, CEF and EGF owned 87.60% and 91.72% of the net assets of their respective Portfolios. The financial statements of the Portfolios, including the Portfolios of Investments, are included elsewhere in this report and should be read in conjunction with the financial statements of the Funds. 66 CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (continued) 1. Valuation of investments -- CEF and EGF record their investments in their respective Portfolios at value. Securities of the Portfolios are recorded at value as more fully discussed in the notes to those financial statements. 2. Investment income and expenses -- CEF and EGF record daily their pro-rata share of their respective Portfolio's income, expenses, and realized and unrealized gains and losses. In addition, the Funds accrued their own expenses daily as incurred. Realized gains/losses and changes in unrealized appreciation/depreciation represent the Fund's share of such elements allocated from the Portfolio. B. MMF, STGSF, ITBF, GSF, IF, BF, EIF and SCF 1. Valuation of investments -- Equity securities are valued at the last sale price on the exchange on which they are primarily traded, including the NASDAQ National Market. Securities for which sale prices are not available and other over-the-counter securities are valued at the last quoted bid price. Except for MMF, bonds and other fixed income securities (other than short-term obligations), including listed issues, are valued on the basis of valuations supplied by pricing services or by matrix pricing systems of a major dealer in bonds. Short-term debt securities with 61 days or more to maturity at time of purchase are valued, through the 61st day prior to maturity, at market value based on quotations obtained from market makers or other appropriate sources; thereafter, the value on the 61st day is amortized on a straight-line basis over the remaining number of days to maturity. Short-term investments with 60 days or less to maturity at time of purchase are valued at amortized cost, which approximates market. Portfolio securities for which there are no such quotations or valuations are valued at fair value as determined in good faith by or at the direction of the Trustees. Money Market instruments held by MMF are valued at amortized cost, which approximates market value. The Trust's use of amortized cost is subject to the Trust's compliance with certain conditions specified under Rule 2a-7 of the 1940 Act. 2. Repurchase agreements -- Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Funds of the Trust may transfer uninvested cash balances into one or more joint trading accounts for the purpose of investing in repurchase agreements. It is the Funds' policy that repurchase agreements are fully collateralized by U.S. Treasury and Government Agency securities. All collateral is held in one or more joint trading accounts by the Trust's custodian bank, subcustodian, or a bank with which the custodian bank has entered into a subcustodian agreement, or is segregated in the Federal Reserve Book Entry System. In connection with transactions in repurchase agreements, if the seller defaults and the value of the collateral declines, or if the seller enters an insolvency proceeding, realization of the collateral by the Fund may be delayed or limited. 3. Security transactions and investment income -- Investment transactions are accounted for on the trade date (the date the order to buy or 67 CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (continued) sell is executed). Securities gains and losses are calculated on the identified cost basis. Interest income is accrued as earned. Dividend income is recorded on the ex-dividend date. Securities purchased or sold on a when-issued, to be announced (TBA) or delayed-delivery basis may be settled a month or more after the trade date; interest income is not accrued until settlement date. Each Fund segregates assets with a current value at least equal to the amount of its when-issued and TBA purchase commitments. C. General Policies 1. Expenses -- Expenses directly attributable to a Fund are charged to that Fund; other expenses are allocated proportionately among the Funds within the Trust in relation to the net assets of each Fund or on another reasonable basis. Expenses directly attributable to a particular class are charged directly to such class. In calculating the net asset value per share of each class, investment income, realized and unrealized gains and losses and expenses other than class specific expenses (including transfer agent fees) are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day. 2. Federal income taxes -- Each Fund is treated as a separate taxable entity for Federal income tax purposes. Each Fund's policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders all of its distributable net investment income and net realized gain on investments. In addition, each Fund intends to make distributions as required to avoid excise taxes. Accordingly, no provision for Federal income or excise tax is necessary. 3. Distributions to shareholders -- Dividends and distributions paid to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations, which may differ from generally accepted accounting principles. To the extent these "book/tax" differences are permanent in nature (i.e., that they result from other than timing of recognition-- "temporary differences"), such amounts are reclassified within the capital accounts based on their Federal tax-basis treatment. 68 CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (continued) The following amounts were reclassified within the capital accounts (in thousands):
Accumulated undistributed/ Accumulated (overdistributed) net realized Paid-in net investment gain (loss) capital income on investments ------------------------------------------------------------------- SCF ......... $(102) $ 94 $8 EGF ......... (599) 592 7
The reclassification for SCF and EGF primarily relate to the character for tax purposes of current year net operating losses. Dividends and distributions which exceed net investment income or net realized capital gains for financial reporting purposes but not for tax purposes are reported as distributions in excess of net investment income or net realized capital gains. 2. Fees and Other Transactions with Affiliates A. Investment advisory fee -- Pursuant to separate Investment Advisory Agreements, The Chase Manhattan Bank ("Chase" or the "Advisor"), acts as the Investment Advisor to MMF, STGSF, ITBF, GSF, IF, BF, EIF and SCF. Chase is a direct wholly-owned subsidiary of The Chase Manhattan Corporation. As Investment Advisor, Chase supervises the investments of the Funds and for such services is paid a fee. The fee is computed daily and paid monthly at an annual rate equal to 0.30% for MMF, 0.50% for STGSF, ITBF, GSF and IF, and 0.75% for BF, EIF and SCF of average daily net assets. The Advisor voluntarily waived a portion of its fees as outlined in Note 2.D. Chase Bank of Texas N.A. ("Chase Texas"), a wholly-owned subsidiary of The Chase Manhattan Corporation, is the Sub-Investment Advisor to MMF, STGSF, ITBF, GSF, IF, BF, EIF and SCF. Pursuant to the Sub-Investment Advisory Agreement between Chase Texas and Chase, Chase Texas is entitled to receive a fee payable by Chase from its advisory fee, at an annual rate equal to 0.15% for MMF, 0.25% for STGSF, ITBF, GSF and IF, and 0.375% for BF, EIF and SCF of average daily net assets. B. Distribution and sub-administration fees -- Pursuant to a Distribution and Sub-Administration Agreement, Chase Fund Distributors, Inc. ("CFD" or the "Distributor"), a wholly-owned subsidiary of The BISYS Group, Inc., acts as the Funds' distributor and sub-administrator. The Trust has adopted a Rule 12b-1 distribution plan for Investor Class shares, which provides for the payment of distribution fees at an annual rate of up to 0.10% of the average daily net assets attributable to Investor Class shares of the Money Market Fund and at an annual rate of up to 0.25% of the average daily net assets attributable to Investor Class Shares of each other Fund. For the sub-administrative services it performs, CFD is entitled to receive a fee from each Fund at an annual rate equal to 0.05% of the Fund's average daily net assets. 69 CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (continued) The Distributor voluntarily waived some or all of its fees as outlined in Note 2.D. C. Administration fee -- Pursuant to an Administration Agreement, Chase (the "Administrator") provides certain administration services to the Trust. For these services and facilities, the Administrator receives from the Funds (except for CEF and EGF) a fee computed at the annual rate equal to 0.10% of the respective Fund's average daily net assets. Effective August 12, 1999, the Administrator receives from CEF and EGF a fee computed at an annual rate equal to 0.05% of average daily net assets. Prior to August 12, 1999, the fee was 0.10% of average daily net assets. The Administrator voluntarily waived some or all of its fees as outlined in Note 2.D. D. Waiver of fees -- For the year ended December 31, 1999, the Advisor, Distributor and Administrator voluntarily waived fees for each of the Funds as follows (in thousands):
Investment Fund Advisory Administration Distribution Total -------------------------------------------------------------------------- MMF ........... $187 $-- $-- $187 STGSF ......... 119 -- -- 119 ITBF .......... 159 -- 1 160 GSF ........... 33 10 -- 43 IF ............ 119 -- -- 119 BF ............ 158 -- 3 161 EIF ........... 132 -- 4 136 SCF ........... 161 -- 1 162 CEF ........... 96 -- 5 101 EGF ........... 54 -- 18 72
E. Other -- Certain officers of the Trust are officers of Chase Fund Distributors, Inc. or of its parent corporation, The BISYS Group, Inc. Chase provides portfolio accounting and custody services for the Funds, except for CEF and EGF. Compensation for such services is presented in the Statement of Operations as custodian fees. Chase provided portfolio accounting and custody services for CEF and EGF through June 30, 1999. Compensation paid to Chase by CEF and EGF for portfolio accounting and custody services was approximately $41,818 and $39,559, respectively. The Distributor voluntarily reimbursed expenses of the Funds in the amounts as shown on the Statement of Operations. 3. Investment Transactions For the year ended December 31, 1999, purchases and sales of investments (excluding short-term investments) were as follows (in thousands): 70 CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (continued)
Purchases Sales Purchases Sales (excluding U.S. (excluding U.S. of U.S. of U.S. Government) Government) Government Government -------------------------------------------------------------------------------- STGSF ......... $ -- $ -- $31,059 $25,367 ITBF .......... 21,214 14,691 15,928 14,270 GSF ........... -- -- 1,108 6,703 IF ............ 26,244 28,096 55,504 46,609 BF ............ 35,246 6,676 33,412 29,720 EIF ........... 41,731 22,442 -- -- SCF ........... 57,315 42,749 -- -- CEF ........... 65,637 14,089 -- -- EGF ........... 73,977 30,823 -- --
Purchases and sales for CEF and EGF reflect the period January 1, 1999 to August 11, 1999. After August 11, 1999, all of CEF's and EGF's investable assets were invested in CEP and EGP, respectively. 4. Federal Income Tax Matters For Federal income tax purposes, the cost and unrealized appreciation (depreciation) in value of the investment securities at December 31, 1999, are as follows (in thousands):
Net unrealized Aggregate Gross unrealized Gross unrealized appreciation/ cost appreciation depreciation (depreciation) ------------------------------------------------------------------------------------ STGSF ......... $ 32,032 $ 2 $ (499) $ (497) ITBF .......... 40,401 -- (1,008) (1,008) GSF ........... 7,778 -- (96) (96) IF ............ 86,041 -- (1,192) (1,192) BF ............ 83,135 24,284 (2,655) 21,629 EIF ........... 113,089 65,700 (3,230) 62,470 SCF ........... 69,840 27,055 (3,118) 23,937
At December 31, 1999, the following funds had a capital loss carryover which will be available to offset capital gains arising through December 31, 2007 (in thousands):
Capital Loss Carryover ----------------------------------------------------------------------- STGSF.............................................. $ 110 ITBF .............................................. 301 GSF ............................................... 35 IF ................................................ 813 SCF ............................................... 8,242
To the extent that any net capital loss carryovers are used to offset future capital gains, it is probable that the gains so offset will not be distributed to shareholders. 71 -------------------------------------------------------------------------------- CHASE FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
Chase Money Market Fund -------------------------------- Premier Shares -------------------------------- For the Years Ended December 31, -------------------------------- 1999 1998 1997 ---- ---- ---- Per share operating performance: Net asset value, beginning of period ..................................... $1.00 $1.00 $1.00 ------- ------ ------ Income from investment operations: Net investment income ................................................... 0.05 0.05 0.05 Net gains or losses in investments (both realized and unrealized) ....... -- -- -- ------- ------ ------ Total from investment operations ....................................... 0.05 0.05 0.05 ------- ------ ------ Less distributions: Dividends from net investment income .................................... 0.05 0.05 0.05 Distributions from capital gains ........................................ -- -- -- ------- ------ ------ Total distributions .................................................... 0.05 0.05 0.05 ------- ------ ------ Net asset value, end of period ........................................... $1.00 $1.00 $1.00 ======= ====== ====== Total return ............................................................. 4.89% 5.20% 5.18% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 296 $ 195 $ 135 Ratios to average net assets:# Expenses ................................................................ 0.50% 0.50% 0.50% Net investment income ................................................... 4.81% 5.07% 5.09% Expenses without waivers and assumption of expenses ..................... 0.58% 0.60% 0.74% Net investment income without waivers and assumption of expenses 4.73% 4.97% 4.85% ---------------------------------------------------------------------------------------------------------- Chase Money Market Fund ---------------------------------------------- Premier Shares Investor Shares ---------------------------------------------- For the Years Ended December 31, Year 11/10/98** -------------------- Ended Through 1996 1995 12/31/99 12/31/98 ---- ---- -------- ---------- Per share operating performance: Net asset value, beginning of period ..................................... $1.00 $1.00 $ 1.00 $1.00 ----- ----- ------ ----- Income from investment operations: Net investment income ................................................... 0.05 0.05 0.05 0.01 Net gains or losses in investments (both realized and unrealized) ....... -- -- -- -- ----- ----- ------ ----- Total from investment operations ....................................... 0.05 0.05 0.05 0.01 ----- ----- ------ ----- Less distributions: Dividends from net investment income .................................... 0.05 0.05 0.05 0.01 Distributions from capital gains ........................................ -- -- -- -- ----- ----- ------ ----- Total distributions .................................................... 0.05 0.05 0.05 0.01 ----- ----- ------ ----- Net asset value, end of period ........................................... $1.00 $1.00 $1.00 $1.00 ===== ===== ====== ===== Total return ............................................................. 5.06% 5.57% 4.78% 0.69% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 119 $ 71 $ + $ + Ratios to average net assets:# Expenses ................................................................ 0.50% 0.50% 0.60% 0.60% Net investment income ................................................... 4.93% 5.43% 4.71% 4.72% Expenses without waivers and assumption of expenses ..................... 0.72% 0.72% 25.25% 0.80% Net investment income without waivers and assumption of expenses 4.71% 5.21% (19.94%) 4.52% ----------------------------------------------------------------------------------------------------------------------------
** Commencement of offering of class of shares. # Short periods have been annualized. + Amount rounds to less than one million. See notes to financial statements. 72 ------------------------------------------------------------ CHASE FUNDS FINANCIAL HIGHLIGHTS ----------------------------------------------------------- FINANCIAL HIGHLIGHTS
Chase Short-Intermediate Term U.S. Government Securities Fund ---------------------------------- Premier Shares ---------------------------------- For the Years Ended December 31, ---------------------------------- 1999 1998 1997 ---- ---- ---- Per share operating performance: Net asset value, beginning of period ................................... $12.60 $12.39 $11.66 -------- ------ - ---- Income from investment operations: Net investment income ................................................. 0.60 0.63 0.67 Net gains or losses in investments (both realized and unrealized) ..... (0.51) 0.25 0.06 -------- ------ ------ Total from investment operations ..................................... 0.09 0.88 0.73 -------- ------ ------ Less distributions: Dividends from net investment income .................................. 0.60 0.63 -- Distributions from capital gains ...................................... 0.04 0.04 -- -------- ------ ------ Total distributions .................................................. 0.64 0.67 -- -------- ----- ------ Net asset value, end of period ......................................... $12.05 $12.60 $12.39 ======== ====== ====== Total return ........................................................... 0.72% 7.35% 6.30% Ratios/supplemental data: Net assets, end of period (millions) .................................. $ 31 $ 31 $ 24 Ratios to average net assets:# Expenses .............................................................. 0.75% 0.75% 0.75% Net investment income ................................................. 4.82% 5.06% 5.40% Expenses without waivers and assumption of expenses ................... 1.12% 1.12% 1.01% Net investment income without waivers and assumption of expenses 4.45% 4.69% 5.14% Portfolio turnover rate ................................................ 91% 87% 63% ----------------------------------------------------------------------------------------------------------- Chase Short-Intermediate Term U.S. Government Securities Fund ------------------------------------------ Premier Shares Investor Shares --------------- --------------------- For the Years Ended December 31, Year 11/10/98** ------------------ Ended Through 1996 1995 12/31/99 12/31/98 ---- ---- -------- ---------- Per share operating performance: Net asset value, beginning of period ................................... $11.35 $10.14 $ 12.59 $12.64 ------ ------ -------- ------- Income from investment operations: Net investment income ................................................. 0.60 0.58 0.57 0.08 Net gains or losses in investments (both realized and unrealized) ..... (0.29) 0.63 (0.51) -- ------ ------ -------- ------- Total from investment operations ..................................... 0.31 1.21 0.06 0.08 ------ ------ -------- ------- Less distributions: Dividends from net investment income .................................. -- -- 0.57 0.09 Distributions from capital gains ...................................... -- -- 0.04 0.04 ------ ------ -------- ------- Total distributions .................................................. -- -- 0.61 0.13 ------ ------ -------- ------- Net asset value, end of period ......................................... $11.66 $11.35 $ 12.04 $12.59 ====== ====== ======== ======= Total return ........................................................... 2.68% 12.01% 0.48% 0.60% Ratios/supplemental data: Net assets, end of period (millions) .................................. $ 29 $ 29 $ + $ + Ratios to average net assets:# Expenses .............................................................. 0.75% 0.75% 0.99% 1.03% Net investment income ................................................. 5.26% 5.38% 4.58% 4.47% Expenses without waivers and assumption of expenses ................... 0.88% 0.91% 57.39% 1.58% Net investment income without waivers and assumption of expenses 5.13% 5.22% (51.82%) 3.92% Portfolio turnover rate ................................................ 177% 187% 91% 87% --------------------------------------------------------------------------------------------------------------------
** Commencement of offering of class of shares. # Short periods have been annualized. + Amount rounds to less than one million. See notes to financial statements. 73 -------------------------------------------------------------------------------- CHASE FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
Chase Intermediate Term Bond Fund ----------------------------------- Premier Shares ----------------------------------- For the Years Ended December 31, ----------------------------------- 1999 1998 1997 ---- ---- ---- Per share operating performance: Net asset value, beginning of period ..................................... $12.87 $12.75 $11.89 ------ ------- ------ Income from investment operations: Net investment income ................................................... 0.66 0.68 0.56 Net gains or losses in investments (both realized and unrealized) ....... (0.80) 0.27 0.30 ------ ------ ------ Total from investment operations ....................................... (0.14) 0.95 0.86 ------ ------ ------ Less distributions: Dividends from net investment income .................................... 0.66 0.68 -- Distributions from capital gains ........................................ 0.01 0.15 -- ------ ------ ------ Total distributions .................................................... 0.67 0.83 -- ------ ------ ------ Net asset value, end of period ........................................... $12.06 $12.87 $12.75 ====== ====== ====== Total return ............................................................. (1.11%) 7.63% 7.26% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 39 $ 33 $ 19 Ratios to average net assets:# Expenses ................................................................ 0.75% 0.75% 0.75% Net investment income ................................................... 5.33% 5.25% 5.61% Expenses without waivers and assumption of expenses ..................... 1.18% 1.27% 1.25% Net investment income without waivers and assumption of expenses 4.90% 4.73% 5.11% Portfolio turnover rate .................................................. 85% 135% 14% -------------------------------------------------------------------------------------------------------------- Chase Intermediate Term Bond Fund ---------------------------------------------- Premier Shares Investor Shares ----------------- ------------------------ For the Years Ended December 31, Year 11/10/98** ------------------ Ended Through 1996 1995 12/31/99 12/31/98 ---- ---- -------- ---------- Per share operating performance: Net asset value, beginning of period ..................................... $11.67 $ 9.99 $12.87 $12.91 ------ ------ ------ ------ Income from investment operations: Net investment income ................................................... 0.61 0.64 0.63 0.09 Net gains or losses in investments (both realized and unrealized) ....... (0.39) 1.04 (0.80) 0.11 ------ ------ ------ ------ Total from investment operations ....................................... 0.22 1.68 (0.17) 0.20 ------ ------ ------ ------ Less distributions: Dividends from net investment income .................................... -- -- 0.63 0.09 Distributions from capital gains ........................................ -- -- 0.01 0.15 ------ ------ ------ ------ Total distributions .................................................... -- -- 0.64 0.24 ------ ------ ------ ------ Net asset value, end of period ........................................... $11.89 $11.67 $12.06 $12.87 ====== ====== ====== ====== Total return ............................................................. 1.86% 16.79% (1.36%) 1.52% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 7 $ 5 $ + $ + Ratios to average net assets:# Expenses ................................................................ 0.75% 0.75% 0.99% 1.03% Net investment income ................................................... 5.32% 5.89% 5.09% 4.64% Expenses without waivers and assumption of expenses ..................... 1.42% 1.43% 9.79% 1.72% Net investment income without waivers and assumption of expenses 4.65% 5.21% (3.71%) 3.95% Portfolio turnover rate .................................................. 134% 198% 85% 135% ---------------------------------------------------------------------------------------------------------------------------
** Commencement of offering of class of shares. # Short periods have been annualized. + Amount rounds to less than one million. See notes to financial statements. 74 -------------------------------------------------------------------------------- CHASE FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
Chase U.S. Government Securities Fund ------------------------------------- Premier Shares ----------------------------------- For the Years Ended December 31, ----------------------------------- 1999 1998 1997 ---- ---- ---- Per share operating performance: Net asset value, beginning of period ..................................... $13.83 $13.98 $12.76 ------ ------ ------ Income from investment operations: Net investment income ................................................... 0.64 0.72 0.75 Net gains or losses in investments (both realized and unrealized) ....... (0.99) 0.54 0.47 -------- ------ ------ Total from investment operations ....................................... (0.35) 1.26 1.22 -------- ------ ------ Less distributions: Dividends from net investment income .................................... 0.64 0.72 -- Distributions from capital gains ........................................ -- 0.68 -- In excess of realized capital gains ..................................... -- 0.01 -- -------- ------ ------ Total distributions .................................................... 0.64 1.41 -- -------- ------ ------ Net asset value, end of period ........................................... $12.84 $13.83 $13.98 ====== ====== ====== Total return ............................................................. (2.55%) 9.28% 9.55% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 8 $ 4 $ 3 Ratios to average net assets:# Expenses ................................................................ 0.75% 0.75% 0.75% Net investment income ................................................... 4.87% 5.07% 5.73% Expenses without waivers and assumption of expenses ..................... 2.44% 3.85%* 3.15% Net investment income without waivers and assumption of expenses 3.18% 1.97%* 3.33% Portfolio turnover rate .................................................. 19% 110% 87% --------------------------------------------------------------------------------------------------------------- Chase U.S. Government Securities Fund ----------------------------------------------- Premier Shares Investor Shares ---------------- ------------------------- For the Years Ended December 31, Year 11/10/98** ------------------- Ended Through 1996 1995 12/31/99 12/31/98 ---- ---- -------- ---------- Per share operating performance: Net asset value, beginning of period ..................................... $13.01 $10.00 $ 13.83 $14.42 ------ ------ ------- ------ Income from investment operations: Net investment income ................................................... 0.74 0.73 0.61 0.09 Net gains or losses in investments (both realized and unrealized) ....... (0.99) 2.28 (0.99) 0.10 ------ ------ ------- ------ Total from investment operations ....................................... (0.25) 3.01 (0.38) 0.19 ------ ------ ------- ------ Less distributions: Dividends from net investment income .................................... -- -- 0.61 0.09 Distributions from capital gains ........................................ -- -- -- 0.68 In excess of realized capital gains ..................................... -- -- -- 0.01 ------ ------ ------- ------ Total distributions .................................................... -- -- 0.61 0.78 ------ ------ ------- ------ Net asset value, end of period ........................................... $12.76 $13.01 12.84 $13.83 ====== ====== ======= ====== Total return ............................................................. (1.89%) 30.11% (2.79%) 1.37% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 3 $ 3 $ + $ + Ratios to average net assets:# Expenses ................................................................ 0.75% 0.75% 1.00% 1.03% Net investment income ................................................... 6.01% 6.38% 4.62% 4.45% Expenses without waivers and assumption of expenses ..................... 2.09% 2.22% 45.80% 1.92% Net investment income without waivers and assumption of expenses 4.67% 4.91% (40.18%) 3.56% Portfolio turnover rate .................................................. 48% 17% 19% 110% ----------------------------------------------------------------------------------------------------------------------------
* Restated. ** Commencement of offering of class of shares. # Short periods have been annualized. + Amount rounds to less than one million. See notes to financial statements. 75 -------------------------------------------------------------------------------- CHASE FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
Chase Income Fund ----------------------------------- Premier Shares ----------------------------------- For the Years Ended December 31, ----------------------------------- 1999 1998 1997 ---- ---- ---- Per share operating performance: Net asset value, beginning of period ..................................... $20.47 $20.18 $18.56 ------ ------ ------ Income from investment operations: Net investment income ................................................... 1.03 1.09 1.14 Net gains or losses in investments (both realized and unrealized) ....... (1.59) 0.77 0.48 ------ ------ ------ Total from investment operations ....................................... (0.56) 1.86 1.62 ------ ------ ------ Less distributions: Dividends from net investment income .................................... 1.03 1.09 -- Distributions from capital gains ........................................ 0.17 0.48 -- ------ ------ ------ Total distributions .................................................... 1.20 1.57 -- ------ ------ ------ Net asset value, end of period ........................................... $18.71 $20.47 $20.18 ====== ====== ====== Total return ............................................................. (2.78%) 9.47% 8.73% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 65 $ 60 $ 51 Ratios to average net assets:# Expenses ................................................................ 0.75% 0.75% 0.75% Net investment income ................................................... 5.28% 5.28% 5.82% Expenses without waivers and assumption of expenses ..................... 0.93% 0.94% 1.14% Net investment income without waivers and assumption of expenses 5.10% 5.09% 5.43% Portfolio turnover rate .................................................. 120% 54% 97% -------------------------------------------------------------------------------------------------------------- Chase Income Fund ---------------------------------------------- Premier Shares Investor Shares ------------------- ------------------------ For the Years Ended December 31, Year 11/10/98** -------------------- Ended Through 1996 1995 12/31/99 12/31/98 ---- ---- -------- ---------- Per share operating performance: Net asset value, beginning of period ..................................... $18.21 $15.39 $20.46 $20.77 ------ ------ ------- ------ Income from investment operations: Net investment income ................................................... 1.00 0.97 0.98 0.14 Net gains or losses in investments (both realized and unrealized) ....... (0.65) 1.85 (1.57) 0.18 ------ ------ ------- ------ Total from investment operations ....................................... 0.35 2.82 (0.59) 0.32 ------ ------ ------- ------ Less distributions: Dividends from net investment income .................................... -- -- 0.98 0.15 Distributions from capital gains ........................................ -- -- 0.17 0.48 ------ ------ ------- ------ Total distributions .................................................... -- -- 1.15 0.63 ------ ------ ------- ------ Net asset value, end of period ........................................... $18.56 $18.21 $18.72 $20.46 ====== ====== ====== ====== Total return ............................................................. 1.91% 18.38% (2.92%) 1.54% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 54 $ 57 $ 1 $ 1 Ratios to average net assets:# Expenses ................................................................ 0.75% 0.75% 0.99% 1.03% Net investment income ................................................... 5.58% 5.77% 5.04% 4.72% Expenses without waivers and assumption of expenses ..................... 1.07% 1.08% 6.22% 1.44% Net investment income without waivers and assumption of expenses 5.26% 5.44% (0.19%) 4.31% Portfolio turnover rate .................................................. 72% 93% 120% 54% --------------------------------------------------------------------------------------------------------------------------
** Commencement of offering of class of shares. # Short periods have been annualized. See notes to financial statements. 76 -------------------------------------------------------------------------------- CHASE FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
Chase Balanced Fund ------------------------------------ Premier Shares ------------------------------------ For the Years Ended December 31, ------------------------------------ 1999 1998 1997 ---- ---- ---- Per share operating performance: Net asset value, beginning of period ..................................... $34.54 $29.26 $23.66 ------ ------ ------ Income from investment operations: Net investment income ................................................... 0.78@ 0.73 0.74 Net gains or losses in investments (both realized and unrealized) ....... 4.07 6.53 4.86 ------ ------ ------ Total from investment operations ....................................... 4.85 7.26 5.60 ------ ------ ------ Less distributions: Dividends from net investment income .................................... 0.70 0.73 -- Distributions from capital gains ........................................ 0.19 1.25 -- ------ ------ ------ Total distributions .................................................... 0.89 1.98 -- ------ ------ ------ Net asset value, end of period ........................................... $38.50 $34.54 $29.26 ====== ====== ====== Total return ............................................................. 14.23% 25.15% 23.67% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 103 $ 59 $ 36 Ratios to average net assets:# Expenses ................................................................ 1.00% 1.00% 1.00% Net investment income ................................................... 2.19% 2.32% 2.73% Expenses without waivers and assumption of expenses ..................... 1.19% 1.28% 1.28% Net investment income without waivers and assumption of expenses 2.00% 2.04% 2.45% Portfolio turnover rate .................................................. 45% 58% 64% --------------------------------------------------------------------------------------------------------------- Chase Balanced Fund ---------------------------------------------- Premier Shares Investor Shares ------------------- ------------------------ For the Years Ended December 31, Year 10/16/98** ------------------ Ended Through 1996 1995 12/31/99 12/31/98 ---- ---- -------- ---------- Per share operating performance: Net asset value, beginning of period ..................................... $21.25 $17.16 $34.51 $ 31.87 ------ ------ ------ -------- Income from investment operations: Net investment income ................................................... 0.63 0.57 0.70@ 0.10 Net gains or losses in investments (both realized and unrealized) ....... 1.78 3.52 4.05 3.95 ------ ------ ------ -------- Total from investment operations ....................................... 2.41 4.09 4.75 4.05 ------ ------ ------ -------- Less distributions: Dividends from net investment income .................................... -- -- 0.61 0.16 Distributions from capital gains ........................................ -- -- 0.19 1.25 ------ ------ ------ -------- Total distributions .................................................... -- -- 0.80 1.41 ------ ------ ------ -------- Net asset value, end of period ........................................... $23.66 $21.25 $38.46 $ 34.51 ====== ====== ====== ======== Total return ............................................................. 11.31% 23.83% 13.94% 12.78% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 23 $ 21 $ 2 $ 1 Ratios to average net assets:# Expenses ................................................................ 1.00% 1.00% 1.25% 1.25% Net investment income ................................................... 2.82% 2.94% 1.94% 1.84% Expenses without waivers and assumption of expenses ..................... 1.17% 1.17% 3.34% 107.16% Net investment income without waivers and assumption of expenses 2.65% 2.77% (0.15%) (104.07%) Portfolio turnover rate .................................................. 70% 98% 45% 58% ----------------------------------------------------------------------------------------------------------------------------
* Commencement of offering of class of shares. # Short periods have been annualized. @ Calculated based upon average shares outstanding. See notes to financial statements. 77 -------------------------------------------------------------------------------- CHASE FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
Chase Equity Income Fund ----------------------------------- Premier Shares ----------------------------------- For the Years Ended December 31, ----------------------------------- 1999 1998 1997 ---- ---- ---- Per share operating performance: Net asset value, beginning of period ..................................... $46.14 $36.97 $28.21 ------ ------ ------ Income from investment operations: Net investment income ................................................... 0.32@ 0.33 0.40 Net gains or losses in investments (both realized and unrealized) ....... 5.65 9.32 8.36 ------ ------ ------ Total from investment operations ....................................... 5.97 9.65 8.76 ------ ------ ------ Less distributions: Dividends from net investment income .................................... 0.31 0.34 -- Distributions from capital gains ........................................ 2.00 0.14 -- ------ ------ ------ Total distributions .................................................... 2.31 0.48 -- ------ ------ ------ Net asset value, end of period ........................................... $49.80 $46.14 $36.97 ====== ====== ====== Total return ............................................................. 13.06% 26.20% 31.50% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 170 $ 128 $ 75 Ratios to average net assets:# Expenses ................................................................ 1.00% 1.00% 1.00% Net investment income ................................................... 0.66% 0.82% 1.67% Expenses without waivers and assumption of expenses ..................... 1.09% 1.10% 1.11% Net investment income without waivers and assumption of expenses 0.57% 0.72% 1.56% Portfolio turnover rate .................................................. 16% 3% 14% -------------------------------------------------------------------------------------------------------------- Chase Equity Income Fund --------------------------------------------- Premier Shares Investor Shares --------------------- ---------------------- For the Years Ended December 31, Year 8/24/98** ------------------ Ended Through 1996 1995 12/31/99 12/31/98 ---- ---- -------- -------- Per share operating performance: Net asset value, beginning of period ..................................... $23.93 $17.90 $ 46.23 $ 40.49 ------ ------ ------- ------- Income from investment operations: Net investment income ................................................... 0.43 0.44 0.20@ 0.06 Net gains or losses in investments (both realized and unrealized) ....... 3.85 5.59 5.63 5.89 ------ ------ ------- ------- Total from investment operations ....................................... 4.28 6.03 5.83 5.95 ------ ------ ------- ------- Less distributions: Dividends from net investment income .................................... -- -- 0.23 0.07 Distributions from capital gains ........................................ -- -- 2.00 0.14 ------ ------ ------- ------- Total distributions .................................................... -- -- 2.23 0.21 ------ ------ ------- ------- Net asset value, end of period ........................................... $28.21 $23.93 $ 49.83 $ 46.23 ====== ====== ======= ======= Total return ............................................................. 17.87% 33.72% 12.70% 14.70% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 63 $ 55 $ 4 $ 1 Ratios to average net assets:# Expenses ................................................................ 1.00% 1.00% 1.24% 1.18% Net investment income ................................................... 1.67% 2.10% 0.42% 0.57% Expenses without waivers and assumption of expenses ..................... 1.07% 1.09% 3.33% 37.61% Net investment income without waivers and assumption of expenses 1.60% 2.01% (1.67%) (35.86%) Portfolio turnover rate .................................................. 24% 11% 16% 3% --------------------------------------------------------------------------------------------------------------------------
* Commencement of offering of class of shares. # Short periods have been annualized. @ Calculated based upon average shares outstanding. See notes to financial statements. 78 -------------------------------------------------------------------------------- CHASE FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS Chase Small Capitalization Fund ----------------------------------- Premier Shares ----------------------------------- For the Years Ended December 31, ----------------------------------- 1999 1998 1997 ---- ---- ---- Per share operating performance: Net asset value, beginning of period ..................................... $19.96 $21.78 $17.55 ------ ------ ------ Income from investment operations: Net investment income ................................................... (0.02)@ (0.01) 0.02 Net gains or losses in investments (both realized and unrealized) ....... 2.66 (0.46) 4.21 ------ ------ ------ Total from investment operations ....................................... 2.64 ( 0.47) 4.23 ------ ------ ------ Less distributions: Dividends from capital gains ............................................ -- 0.71 -- In excess of net realized gain on investment ............................ -- 0.64 -- ------ ------ ------ Total distributions .................................................... -- 1.35 -- ------ ------ ------ Net asset value, end of period ........................................... $22.60 $19.96 $21.78 ====== ====== ====== Total return ............................................................. 13.23% (1.83%) 24.08% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 93 $ 65 $ 40 Ratios to average net assets:# Expenses ................................................................ 1.00% 1.00% 1.00% Net investment income ................................................... (0.13%) (0.03%) 0.13% Expenses without waivers and assumption of expenses ..................... 1.21% 1.26% 1.40% Net investment income without waivers and assumption of expenses (0.34%) (0.29%) (0.27%) Portfolio turnover rate .................................................. 60% 45% 43% ---------------------------------------------------------------------------------------------------------------
Chase Small Capitalization Fund ------------------------------------------- Premier Shares Investor Shares --------------------- --------------------- For the Years Ended December 31, Year 8/12/98* --------------------- Ended Through 1996 1995 12/31/99 12/31/98 ---- ---- -------- -------- Per share operating performance: Net asset value, beginning of period ..................................... $13.41 $10.23 $19.94 $19.86 ------ ------ ------ ------ Income from investment operations: Net investment income ................................................... 0.01 0.05 (0.08)@ (0.01) Net gains or losses in investments (both realized and unrealized) ....... 4.13 3.13 2.65 1.44 ------ ------ ------ ------ Total from investment operations ....................................... 4.14 3.18 2.57 1.43 ------ ------ ------ ------ Less distributions: Dividends from capital gains ............................................ -- -- -- 0.71 In excess of net realized gain on investment ............................ -- -- -- 0.64 ------ ------ ------ ------ Total distributions .................................................... -- -- -- 1.35 ------ ------ ------ ------ Net asset value, end of period ........................................... $17.55 $13.41 $22.51 $19.94 ====== ====== ====== ====== Total return ............................................................. 30.88% 31.14% 12.89% 7.56% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 21 $ 13 $ 1 $ 1 Ratios to average net assets:# Expenses ................................................................ 1.22% 1.35% 1.24% 1.24% Net investment income ................................................... 0.04% 0.46% (0.37%) (0.18%) Expenses without waivers and assumption of expenses ..................... 1.37% 1.50% 6.02% 74.81% Net investment income without waivers and assumption of expenses (0.11%) 0.31% (5.15%) (73.75%) Portfolio turnover rate .................................................. 68% 89% 60% 45% ------------------------------------------------------------------------------------------------------------------------
* Commencement of offering of class of shares. # Short periods have been annualized. @ Calculated based upon average shares outstanding. See notes to financial statements. 79 -------------------------------------------------------------------------------- CHASE FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
Chase Core Equity Fund ------------------------------------ Premier Shares ------------------------------------ For the Years Ended December 31, ------------------------------------ 1999 1998 1997 ---- ---- ---- Per share operating performance: Net asset value, beginning of period ..................................... $26.52 $21.25 $15.94 ------ ------ ------ Income from investment operations: Net investment income ................................................... 0.04@ 0.09 0.14 Net gains or losses in investments (both realized and unrealized) ....... 6.27 6.44 5.17 ------ ------ ------ Total from investment operations ....................................... 6.31 6.53 5.31 ------ ------ ------ Less distributions: Dividends from net investment income .................................... 0.04 0.09 -- Distributions from capital gains ........................................ 0.55 0.17 -- ------ ------ ------ Total distributions .................................................... 0.59 1.26 -- ------ ------ ------ Net asset value, end of period ........................................... $32.24 $26.52 $21.25 ====== ====== ====== Total return ............................................................. 23.89% 30.95% 33.33% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 181 $ 89 $ 51 Ratios to average net assets:# Expenses ................................................................ 1.00% 1.00% 1.00% Net investment income ................................................... 0.13% 0.39% 0.74% Expenses without waivers and assumption of expenses ..................... 1.11% 1.18% 1.20% Net investment income without waivers and assumption of expenses 0.02% 0.21% 0.54% Portfolio turnover rate .................................................. 11%- 32% 24% --------------------------------------------------------------------------------------------------------------- Chase Core Equity Fund ----------------------------------------------- Premier Shares Investor Shares -------------------- ----------------------- For the Years Ended December 31, Year 9/10/98* --------------------- Ended Through 1996 1995 12/31/99 12/31/98 ---- ---- -------- -------- Per share operating performance: Net asset value, beginning of period ..................................... $13.01 $10.36 $26.52 $ 21.49 ------ ------ ------ -------- Income from investment operations: Net investment income ................................................... 0.16 0.17 (0.05)@ -- Net gains or losses in investments (both realized and unrealized) ....... 2.77 2.48 6.28 6.22 ------ ------ ------ -------- Total from investment operations ....................................... 2.93 2.65 6.23 6.22 ------ ------ ------ -------- Less distributions: Dividends from net investment income .................................... -- -- 0.01 0.02 Distributions from capital gains ........................................ -- -- 0.55 1.17 ------ ------ ------ -------- Total distributions .................................................... -- -- 0.56 1.19 ------ ------ ------ -------- Net asset value, end of period ........................................... $15.94 $13.01 $32.19 $ 26.52 ====== ====== ====== ======== Total return ............................................................. 22.54% 25.53% 23.59% 29.08% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 29 $ 24 $ 6 $ 1 Ratios to average net assets:# Expenses ................................................................ 1.00% 1.00% 1.24% 1.23% Net investment income ................................................... 1.10% 1.44% (0.13%) (0.03%) Expenses without waivers and assumption of expenses ..................... 1.14% 1.17% 3.02% 140.46% Net investment income without waivers and assumption of expenses 0.96% 1.27% (1.89%) (139.26%) Portfolio turnover rate .................................................. 29% 133% 11%- 32% ----------------------------------------------------------------------------------------------------------------------------
* Commencement of offering of class of shares. # Short periods have been annualized. - Portfolio turnover reflects the period January 1, 1999 to August 11, 1999. After August 11, 1999, all the Fund's investable assets were invested in CEP (see Note 1). @ Calculated based upon average shares outstanding. See notes to financial statements. 80 -------------------------------------------------------------------------------- CHASE FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
HERE Chase Equity Growth Fund ------------------------------------ Premier Shares ----------------------------------- For the Years Ended December 31, ----------------------------------- 1999 1998 1997 ---- ---- ---- Per share operating performance: Net asset value, beginning of period ..................................... $52.36 $38.36 $27.95 ------ ------ ------ Income from investment operations: Net investment income ................................................... (0.14)@ 0.03 0.07 Net gains or losses in investments (both realized and unrealized) ....... 16.78 15.78 10.34 --------- -------- -------- Total from investment operations ....................................... 16.64 15.81 10.41 --------- -------- -------- Less distributions: Dividends from net investment income .................................... -- 0.03 -- Distributions from capital gains ........................................ 0.91 1.78 -- --------- -------- -------- Total distributions .................................................... 0.91 1.81 -- --------- -------- -------- Net asset value, end of period ........................................... $68.09 $52.36 $38.36 ========= ======== ======== Total return ............................................................. 31.85% 41.38% 37.20% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 320 $ 179 $ 74 Ratios to average net assets:# Expenses ................................................................ 1.00% 1.00% 1.00% Net investment income ................................................... (0.24%) 0.05% 0.20% Expenses without waivers and assumption of expenses ..................... 1.03% 1.09% 1.11% Net investment income without waivers and assumption of expenses (0.27%) (0.04%) 0.09% Portfolio turnover rate .................................................. 15%- 35% 35% -------------------------------------------------------------------------------------------------------------- Chase Equity Growth Fund ----------------------------------------------- Premium Shares Investor Shares ---------------------- ----------------------- Year 8/13/98* Ended Through 1996 1995 12/31/99 12/31/98 ---- ---- -------- -------- Per share operating performance: Net asset value, beginning of period ..................................... $23.20 $18.44 $52.30 $45.57 ------ ------ ------ ------ Income from investment operations: Net investment income ................................................... 0.10 0.17 (0.29)@ (0.02) Net gains or losses in investments (both realized and unrealized) ....... 4.65 4.59 16.75 8.53 ------ ------ ------ ------ Total from investment operations ....................................... 4.75 4.76 16.46 8.51 ------ ------ ------ ------ Less distributions: Dividends from net investment income .................................... -- -- -- -- Distributions from capital gains ........................................ -- -- 0.91 1.78 ------ ------ ------ ------ Total distributions .................................................... -- -- 0.91 1.78 ------ ------ ------ ------ Net asset value, end of period ........................................... $27.95 $23.20 $67.85 $52.30 ====== ====== ====== ====== Total return ............................................................. 20.52% 25.78% 31.54% 18.80% Ratios/supplemental data: Net assets, end of period (millions) .................................... $ 57 $ 46 $ 15 $ 1 Ratios to average net assets:# Expenses ................................................................ 1.00% 1.00% 1.24% 1.25% Net investment income ................................................... 0.41% 0.78% (0.48%) (0.19%) Expenses without waivers and assumption of expenses ..................... 1.08% 1.10% 2.34% 5.88% Net investment income without waivers and assumption of expenses 0.33% 0.68% (1.58%) 4.82% Portfolio turnover rate .................................................. 62% 99% 15%- 35% --------------------------------------------------------------------------------------------------------------------------
* Commencement of offering of class of shares. # Short periods have been annualized. - Portfolio turnover reflects the period January 1, 1999 to August 11, 1999. After August 11, 1999, all the Fund's investable assets were invested in EGP (see Note 1). @ Calculated based upon average shares outstanding. See notes to financial statements. 81 -------------------------------------------------------------------------------- REPORT OF INDEPENDENT ACCOUNTANTS -------------------------------------------------------------------------------- To the Trustees and Shareholders of Mutual Fund Investment Trust In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments as presented, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Chase Money Market Fund, Chase Short-Intermediate Term U.S. Government Securities Fund, Chase Intermediate Term Bond Fund, Chase U.S. Government Securities Fund, Chase Income Fund, Chase Balanced Fund, Chase Equity Income Fund, Chase Small Capitalization Fund, Chase Core Equity Fund, and Chase Equity Growth Fund (separate portfolios of Mutual Fund Investment Trust, hereafter referred to as the "Trust") at December 31, 1999, the results of each of their operations for the year then ended, and the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 1999 by correspondence with the custodian and brokers, provide a reasonable basis for the opinion expressed above. PricewaterhouseCoopers LLP 1177 Avenue of the Americas New York, New York 10036 February 10, 2000 82 -------------------------------------------------------------------------------- CORE EQUITY PORTFOLIO Portfolio of Investments -------------------------------------------------------------------------------- As of December 31, 1999 (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- 95.2% -------------------------------------------------------------------------------- Common Stock -- 95.2% --------------------- Advertising -- 0.6% 13 Omnicom Group $ 1,305 Airlines -- 0.9% 120 Southwest Airlines, Inc. 1,936 Automotive -- 1.1% 28 Ford Motor Co. 1,482 11 General Motors Corp. 790 ------ 2,272 Banking -- 2.4% 28 Bank of America Corp. 1,395 47 Bank of New York Co., Inc. 1,865 46 Wells Fargo Co. 1,861 ------ 5,121 Biotechnology -- 1.0% 34 Amgen, Inc. * 2,054 Broadcasting/Cable -- 1.6% 43 AT&T Corp. -- Liberty Media Group, Class A * 2,435 12 Clear Channel Communications, Inc. * 1,071 ------ 3,506 Chemicals -- 0.8% 26 E.I. DuPont de Nemours Co. 1,726 Computer Networks -- 2.8% 55 Cisco Systems, Inc. * 5,924 Computer Software -- 6.6% 121 Microsoft Corp. * 14,077 Computers/Computer Hardware -- 6.2% 57 Dell Computer Corp. * 2,913 37 EMC Corp. * 4,053 18 Hewlett-Packard Co. 2,034 39 International Business Machines Corp. 4,172 ------ 13,172 Consumer Products -- 1.1% 21 Procter & Gamble Co. 2,336 Diversified -- 5.7% 62 General Electric Co. 9,548 65 Tyco International LTD (Bermuda) 2,513 ------ 12,061 Electronics/Electrical Equipment -- 1.5% 33 Solectron Corp. * 3,146 Financial Services -- 7.1% 26 American Express Co. 4,289 54 Charles Schwab Corp. 2,090 81 Citigroup, Inc. 4,475 37 Fannie Mae 2,310 15 Morgan Stanley Dean Witter & Co. 2,113 ------ 15,277
See notes to financial statements. 83 CORE EQUITY PORTFOLIO Portfolio of Investments (Continued) As of December 31, 1999 (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- Continued -------------------------------------------------------------------------------- Food/Beverage Products -- 2.7% 26 Anheuser-Busch Companies, Inc. $ 1,837 42 Coca-Cola, Co. 2,421 43 PepsiCo, Inc. 1,519 ------- 5,777 Health Care/Health Care Services -- 2.3% 45 Colgate-Palmolive Co. 2,953 24 Guidant Corp. * 1,118 23 Medtronic, Inc. 831 ------- 4,902 Insurance -- 4.0% 33 American General Corp. 2,530 55 American International Group, Inc. 5,995 ------- 8,525 Internet Services/Software -- 1.3% 37 America Online, Inc. * 2,818 Machinery & Engineering Equipment -- 0.9% 15 Applied Materials, Inc. * 1,846 Manufacturing -- 0.8% 31 Honeywell International Inc. 1,761 Metals/Mining -- 1.1% 28 Alcoa, Inc. 2,359 Multi-Media -- 1.2% 34 Time Warner, Inc. 2,476 Oil & Gas -- 7.0% 17 Chevron Corp. 1,494 67 Enron Corp. 2,960 84 Exxon Mobil Corp. 6,760 25 Royal Dutch Petroleum Co., N.Y. Registered Shares (Netherlands) 1,529 18 Texaco, Inc. 983 44 Williams Companies, Inc. 1,352 ------- 15,078 Pharmaceuticals -- 7.0% 29 Abbot Laboratories 1,059 26 American Home Products Corp. 1,017 34 Bristol-Myers Squibb Co. 2,194 20 Eli Lilly & Co. 1,313 21 Johnson & Johnson 1,981 39 Merck & Co., Inc. 2,597 67 Pfizer, Inc. 2,178 37 Schering-Plough Corp. 1,556 14 Warner-Lambert Co. 1,131 ------- 15,026 Restaurants/Food Services -- 0.7% 35 McDonald's Corp. 1,410
See notes to financial statements. 84 CORE EQUITY PORTFOLIO Portfolio of Investments (Continued) As of December 31, 1999 (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- Continued -------------------------------------------------------------------------------- Retailing -- 10.8% 29 Bed Bath & Beyond, Inc. * $ 1,016 39 Best Buy Co., Inc. * 1,951 29 Dayton-Hudson Corp. 2,144 47 Gap, Inc. 2,155 69 Home Depot, Inc. 4,750 58 Kroger Co. * 1,100 111 Wal-Mart Stores, Inc. 7,702 80 Walgreen Co. 2,344 -------- 23,162 Semi-Conductors -- 3.8% 26 Altera Corp. * 1,303 59 Intel Corp. 4,846 20 Texas Instruments, Inc. 1,928 -------- 8,077 Telecommunications -- 6.8% 51 AT&T Corp. 2,601 43 BellSouth Corp. 2,020 27 GTE Corp. 1,879 49 MCI WorldCom, Inc. * 2,597 60 SBC Communications, Inc. 2,934 36 Sprint Corp. (FON Group) 2,413 -------- 14,444 Telecommunications Equipment -- 4.7% 62 Lucent Technologies, Inc. 4,651 21 Motorola, Inc. 3,085 23 Nortel Networks Corp. (Canada) 2,318 -------- 10,054 Utilities -- 0.7% 20 AES Corp. * 1,488 -------------------------------------------------------------------------------- Total Long-Term Investments 203,116 (Cost $142,453) -------------------------------------------------------------------------------- Short-Term Investments -- 4.9% --------------------------------------------------------------------------------
Principal Amount Repurchase Agreement -- 4.9% ---------------------------- $ 10,464 Greenwich Capital Markets, Inc., in a joint trading account at 3.50%, due 01/03/00, (Dated 12/31/99, Proceeds $10,467, Secured by FHLMC, $10,938, 5.75%, due 09/15/22; Market Value $10,678) 10,464 (Cost $10,464) -------------------------------------------------------------------------------- Total Investments -- 100.1% $213,580 (Cost $152,917) --------------------------------------------------------------------------------
See notes to financial statements. 85 -------------------------------------------------------------------------------- EQUITY GROWTH PORTFOLIO Portfolio of Investments -------------------------------------------------------------------------------- As of December 31, 1999 (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- 95.0% -------------------------------------------------------------------------------- Common Stock -- 95.0% --------------------- Airlines -- 0.6% 126 Southwest Airlines, Inc. $ 2,045 Biotechnology -- 5.0% 203 Amgen, Inc. * 12,189 54 Biogen, Inc. * 4,593 28 Genzyme Corp. -- General Division * 1,250 ------- 18,032 Broadcasting/Cable -- 0.5% 19 Clear Channel Communications, Inc. * 1,682 Computer Networks -- 3.1% 106 Cisco Systems, Inc. * 11,347 Computer Software -- 6.8% 27 Citrix Systems, Inc. * 3,312 184 Microsoft Corp. * 21,435 ------- 24,747 Computers/Computer Hardware -- 8.4% 127 Dell Computer Corp. * 6,473 135 EMC Corp. * 14,730 85 International Business Machines Corp. 9,215 ------ 30,418 Consumer Products -- 2.6% 60 Gillette Co. 2,460 66 Procter & Gamble Co. 7,179 ------- 9,639 Diversified -- 5.6% 113 General Electric Co. 17,560 74 Tyco International LTD (Bermuda) 2,885 ------- 20,445 Electronics/Electrical Equipment -- 1.9% 72 Solectron Corp. * 6,809 Financial Services -- 5.3% 22 American Express Co. 3,583 155 Charles Schwab Corp. 5,939 50 Merrill Lynch & Co., Inc. 4,179 39 Morgan Stanley Dean Witter & Co. 5,528 ------- 19,229 Food/Beverage Products -- 2.4% 16 Anheuser-Busch Companies, Inc. 1,155 84 Coca-Cola, Co. 4,894 76 PepsiCo, Inc. 2,689 ------- 8,738 Health Care/Health Care Services -- 0.7% 27 Guidant Corp. * 1,256 32 Medtronic, Inc. 1,148 ------- 2,404 Insurance -- 0.9% 32 American International Group, Inc. 3,444 Internet Services/Software -- 3.1% 151 America Online, Inc. * 11,402
See notes to financial statements. 86 EQUITY GROWTH PORTFOLIO Portfolio of Investments (Continued) As of December 31, 1999 (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- Continued -------------------------------------------------------------------------------- Machinery & Engineering Equipment -- 3.6% 104 Applied Materials, Inc. * $ 13,176 Multi-Media -- 1.6% 80 Time Warner, Inc. 5,829 Pharmaceuticals -- 9.5% 53 Abbot Laboratories 1,941 63 American Home Products Corp. 2,489 73 Bristol-Myers Squibb Co. 4,671 51 Eli Lilly & Co. 3,375 48 Johnson & Johnson 4,514 94 Merck & Co., Inc. 6,286 141 Pfizer, Inc. 4,570 75 Schering-Plough Corp. 3,164 44 Warner-Lambert Co. 3,624 -------- 34,634 Restaurants/Food Services -- 0.4% 32 McDonald's Corp. 1,293 Retailing -- 9.5% 73 Bed Bath & Beyond, Inc. * 2,548 46 Best Buy Co., Inc. * 2,316 148 Gap, Inc. 6,817 82 Home Depot, Inc. 5,641 206 Kroger Co. * 3,896 199 Wal-Mart Stores, Inc. 13,763 -------- 34,981 Semi-Conductors -- 9.5% 172 Intel Corp. 14,177 64 KLA-Tencor Corp. * 7,136 93 Novellus Systems, Inc. * 11,362 25 Texas Instruments, Inc. 2,393 -------- 35,068 Telecommunications -- 9.1% 166 AT&T Corp. 8,401 44 Bell Atlantic Corp. 2,698 54 BellSouth Corp. 2,507 29 GTE Corp. 2,060 75 MCI WorldCom, Inc. * 3,992 35 Nextel Communications, Inc., Class A * 3,571 113 SBC Communications, Inc. 5,494 35 Sprint Corp. (FON Group) 2,371 38 Vodafone AirTouch PLC, ADR (United Kingdom) 1,902 -------- 32,996 Telecommunications Equipment -- 4.9% 132 Lucent Technologies, Inc. 9,889 53 Motorola, Inc. 7,871 -------- 17,760 -------------------------------------------------------------------------------- Total Long-Term Investments 346,118 (Cost $200,787) --------------------------------------------------------------------------------
See notes to financial statements. 87 EQUITY GROWTH PORTFOLIO Portfolio of Investments (Continued) As of December 31, 1999 (Amounts in Thousands)
Principal Amount Issuer Value -------------------------------------------------------------------------------- Short-Term Investments -- 5.0% -------------------------------------------------------------------------------- Repurchase Agreement -- 5.0% ---------------------------- $ 18,146 Greenwich Capital Markets, Inc., in a joint trading account at 3.50%, due 01/03/00, (Dated 12/31/99, Proceeds $18,151, Secured by FHLMC, $18,959, 5.75%, due 09/15/22; Market Value $18,509) $ 18,146 (Cost $18,146) -------------------------------------------------------------------------------- Total Investments -- 100.0% $364,264 (Cost $218,933) --------------------------------------------------------------------------------
INDEX: * -- Non-income producing security. ADR -- American Depositary Receipt. FHLMC -- Federal Home Loan Mortgage Corporation. See notes to financial statements. 88 -------------------------------------------------------------------------------- CORE EQUITY AND EQUITY GROWTH PORTFOLIOS Statement of Assets and Liabilities As of December 31, 1999 -------------------------------------------------------------------------------- (Amounts in Thousands)
Equity Core Equity Growth Portfolio Portfolio -------------------------------------------------------------------------------- ASSETS: Investment securities, at value (Note 1) ......... $213,580 $364,264 Cash ............................................. -- 1 Receivable for interest and dividends ............ 83 160 -------------------------------------------------------------------------------- Total Assets .................................. 213,663 364,425 -------------------------------------------------------------------------------- LIABILITIES: Payable to Custodian ............................. 181 -- Accrued liabilities: (Note 2) Investment advisory fees ........................ 113 212 Administration fees ............................. 9 15 Other ........................................... 31 17 -------------------------------------------------------------------------------- Total Liabilities ............................. 334 244 -------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS .............................. $213,329 $364,181 -------------------------------------------------------------------------------- Cost of investments .............................. $152,917 $218,933 --------------------------------------------------------------------------------
See notes to financial statements. 89 -------------------------------------------------------------------------------- CORE EQUITY AND EQUITY GROWTH PORTFOLIOS Statement of Operations For the period from August 12, 1999 to December 31, 1999 -------------------------------------------------------------------------------- (Amounts in Thousands)
Equity Core Equity Growth Portfolio Portfolio ------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividend ..................................................... $ 522 $ 570 Interest ..................................................... 192 290 Foreign taxes withheld ....................................... (2) (1) ------------------------------------------------------------------------------------------- Total investment income ................................... 712 859 ------------------------------------------------------------------------------------------- EXPENSES: (Note 2) Investment advisory fees ..................................... 524 863 Administration fees .......................................... 35 58 Custody and accounting fees .................................. 18 28 Professional fees ............................................ 22 22 Trustees' fees and expenses .................................. 4 2 Other ........................................................ 6 6 ------------------------------------------------------------------------------------------- Total expenses ............................................ 609 979 ------------------------------------------------------------------------------------------- Less amounts waived (Note 2A) ................................ 70 35 ------------------------------------------------------------------------------------------- Net expenses ............................................... 539 944 ------------------------------------------------------------------------------------------- Net investment income (loss) .............................. 173 (85) ------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investment transactions .......... 2,121 (283) Change in net unrealized appreciation of investments ......... 23,715 67,192 ------------------------------------------------------------------------------------------- Net realized and unrealized gain on investments .............. 25,836 66,909 ------------------------------------------------------------------------------------------- Net increase in net assets from operations ................... $26,009 $66,824 -------------------------------------------------------------------------------------------
See notes to financial statements. 90 -------------------------------------------------------------------------------- CORE EQUITY AND EQUITY GROWTH PORTFOLIOS Statement of Changes in Net Assets For the periods indicated -------------------------------------------------------------------------------- (Amounts in Thousands)
Equity Core Equity Growth Portfolio Portfolio ---------------------------------------------------------------------------------------------------- 08/12/99* 08/12/99* Through Through 12/31/99 12/31/99 ---------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss) ................................. $ 173 $ (85) Net realized gain (loss) on investments ...................... 2,121 (283) Change in net unrealized appreciation of investments ......... 23,715 67,192 ---------------------------------------------------------------------------------------------------- Increase in net assets from operations ..................... 26,009 66,824 ---------------------------------------------------------------------------------------------------- TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS (Note 1): Contributions ................................................ 207,886 332,120 Withdrawals .................................................. (20,566) (34,763) ---------------------------------------------------------------------------------------------------- Net increase from transactions in investors' beneficial interests ........................................ 187,320 297,357 ---------------------------------------------------------------------------------------------------- Total increase in net assets ............................... 213,329 364,181 NET ASSETS: Beginning of period .......................................... -- -- ---------------------------------------------------------------------------------------------------- End of period ................................................ $213,329 $ 364,181 ----------------------------------------------------------------------------------------------------
* Commencement of operations. See notes to financial statements. 91 -------------------------------------------------------------------------------- PORTFOLIOS Notes to Financial Statements -------------------------------------------------------------------------------- 1. Organization and Significant Accounting Policies Mutual Fund Master Investment Trust (the "Trust") was organized as a Massachusetts Business Trust, and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. Core Equity Portfolio ("CEP") and Equity Growth Portfolio ("EGP"), collectively the "Portfolios," are separate series of the Trust. The declaration of trust permits the Trustees to issue beneficial interests in the Portfolios. On August 12, 1999, the Chase Core Equity Fund and Chase Equity Growth Fund (separate portfolios of Mutual Fund Investment Trust) contributed 100% of their investable net assets ($156,409,317 and $240,616,354, respectively) to the newly created CEP and EGP, in a tax-free exchange. The following is a summary of significant accounting policies followed by the Portfolios: The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. A. Valuation of investments -- Equity securities, purchased options and futures are valued at the last sale price on the exchange on which they are primarily traded, including the NASDAQ National Market. Securities for which sale prices are not available and other over-the-counter securities are valued at the last quoted bid price. Bonds and other fixed income securities (other than short-term obligations), including listed issues, are valued on the basis of valuations supplied by pricing services or by matrix pricing systems of a major dealer in bonds. Short-term debt securities with 61 days or more to maturity at time of purchase are valued, through the 61st day prior to maturity, at market value based on quotations obtained from market makers or other appropriate sources; thereafter, the value on the 61st day is amortized on a straight-line basis over the remaining number of days to maturity. Short-term investments with 60 days or less to maturity at time of purchase are valued at amortized cost, which approximates market. Portfolio securities for which there are no such quotations or valuations are valued at fair value as determined in good faith by or at the direction of the Trustees. B. Repurchase agreements -- Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Portfolios may transfer uninvested cash balances into one or more joint trading accounts for the purpose of investing in repurchase agreements. It is the Portfolios' policy that repurchase agreements are fully collateralized by U.S. Treasury and Government Agency securities. All collateral is held in one or more joint trading accounts by the Portfolios' custodian bank, subcustodian, or a bank with which the custodian bank has entered into a subcustodian agreement, or is segregated in the Federal Reserve Book Entry System. In connection with transactions in repurchase agreements, if the seller defaults and the value of the collateral declines, or if the seller enters an insolvency proceeding, realization of the collateral by the Trusts may be delayed or limited. 92 PORTFOLIOS Notes to Financial Statements C. Security transactions and investment income -- Investment transactions are accounted for on the trade date (the date the order to buy or sell is executed). Securities gains and losses are calculated on the identified cost basis. Interest income is accrued as earned. Dividend income is recorded on the ex-dividend date. D. Federal income taxes -- The Portfolios intend to continue to qualify as partnerships and therefore net investment income and net realized gains are taxed to the partners. Accordingly, no tax provisions are recorded by the Portfolios. The investors in the Portfolios must take into account their proportionate share of the Portfolios' income, gains, losses, deductions, credits and tax preference items in computing their federal income tax liability, without regard to whether they have received any cash distributions from the Portfolio. The Portfolios do not intend to distribute to investors their net investment income or their net realized gains, if any. It is intended that the Portfolios will be managed in such a way that investors in the Portfolio will be able to satisfy the requirements of subchapter M of the Internal Revenue Code to be taxed as regulated investment companies. E. Expenses -- Expenses directly attributable to a Portfolio are charged to that Portfolio; other expenses are allocated on another reasonable basis. 2. Fees and Other Transactions with Affiliates A. Investment advisory fee -- Pursuant to separate Investment Advisory Agreements, The Chase Manhattan Bank ("Chase" or the "Advisor") acts as the Investment Advisor to the Portfolios. Chase is a direct wholly-owned subsidiary of The Chase Manhattan Corporation. As Investment Advisor, Chase supervises the investments of the Portfolios and for such services is paid a fee. The fee is computed daily and paid monthly at an annual rate equal to 0.75% of the Portfolios' average daily net assets. Chase Bank of Texas N.A. ("Chase Texas"), a registered investment advisor, is the sub-investment advisor to each of the Portfolios pursuant to a Sub-Investment Advisory Agreement between Chase Texas and Chase. Chase Texas is a wholly-owned subsidiary of Chase and is entitled to receive a fee, payable by Chase from its advisory fee, at an annual rate equal to 0.375% of each Portfolio's average daily net assets. For the period from August 12, 1999 to December 31, 1999, the Advisor voluntarily waived advisory fees of $69,918 and $34,534 for CEP and EGP, respectively. B. Administration fee -- Pursuant to an Administration Agreement, Chase (the "Administrator") provides certain administration services to the Portfolios. For these services and facilities, the Administrator receives from each Portfolio a fee computed at the annual rate equal to 0.05% of the respective Portfolio's average daily net assets. 93 PORTFOLIOS Notes to Financial Statements 3. Investment Transactions For the period from August 12, 1999 to December 31, 1999, purchases and sales of investments (excluding short-term investments) were as follows (in thousands):
CEP EGP -------------------------------------------------------------------------- Purchases (excluding U.S. Government)........... $43,236 $52,438 Sales (excluding U.S. Government) .............. 11,187 1,116
The portfolio turnover rates of CEP and EGP for the period from August 12, 1999 to December 31, 1999, were 6% and 1% respectively. 4. Federal Income Tax Matters For Federal income tax purposes, the cost and unrealized appreciation (depreciation) in value of the investment securities at December 31, 1999, are as follows (in thousands):
CEP EGP -------------------------------------------------------------------------- Aggregate cost ......................... $152,948 $219,810 -------- -------- Gross unrealized appreciation........... $ 62,562 $145,253 Gross unrealized depreciation........... (1,930) (799) -------- -------- Net unrealized appreciation ............ $ 60,632 $144,454 ======== ========
94 -------------------------------------------------------------------------------- REPORT OF INDEPENDENT ACCOUNTANTS -------------------------------------------------------------------------------- To the Trustees and Beneficial Unit Holders of Mutual Fund Master Investment Trust In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets present fairly, in all material respects, the financial position of Core Equity Portfolio and Equity Growth Portfolio (separate portfolios of Mutual Fund Master Investment Trust, hereafter referred to as the "Trust") at December 31, 1999, and the results of each of their operations and the changes in each of their net assets for the period August 12, 1999 (commencement of operations) through December 31, 1999, in conformity with accounting principles generally accepted in the United States. These financial statements are the responsibility of the Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 1999 by correspondence with the custodian and brokers, provide a reasonable basis for the opinion expressed above. PricewaterhouseCoopers LLP 1177 Avenue of the Americas New York, New York 10036 February 10, 2000 95 [This page intentionally left blank] [This page intentionally left blank] -------------------------------------------------------------------------------- CHASE FUNDS ANNUAL REPORT -------------------------------------------------------------------------------- Investment Adviser, Administrator, Shareholder and Fund Servicing Agent and Custodian Chase Funds Service Center 210 West 10th Street Kansas City, MO 64105 Legal Counsel Simpson Thacher & Bartlett 425 Lexington Avenue New York, NY 10017 Independent Accountants PricewaterhouseCoopers LLP 1177 Avenue of the Americas New York, NY 10036 Chase Funds are distributed by Chase Fund Distributors, Inc., which is unaffiliated with The Chase Manhattan Bank. Chase and its respective affiliates receive compensation from Chase Funds for providing investment advisory and other services. This report is submitted for the general information of the shareholders of the Funds. It is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by a prospectus. To obtain a prospectus for any of the Chase Funds, call 1-800-5-CHASE-0. The prospectus contains more complete information, including charges and ongoing expenses. Please read it carefully before you invest or send money. (C) 2000 The Chase Manhattan Corporation. All Rights Reserved. February 2000 [CHASE LOGO] CHASE FUNDS(SM) Chase Funds Fulfillment Center 393 Manley Street West Bridgewater, MA 02379-1039