EX-99.(17)(H) 10 a2027167zex-99_17h.txt EXHIBIT 99(17)(H) -------------------------------------------------------------------------------- JUNE 30, 2000 (UNAUDITED) -------------------------------------------------------------------------------- Chase Funds SEMI-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 CORE EQUITY FUND EQUITY GROWTH FUND [CHASE Logo] ANCF-3-600 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ----------------------------------------------------------------------------- Contents ----------------------------------------------------------------------------- Chairman's Letter 1 ----------------------------------------------------------------------------- Chase Money Market Fund 2 Fund Commentary ----------------------------------------------------------------------------- Chase Short-Intermediate Term U.S. Government Securities Fund 4 Fund Commentary ----------------------------------------------------------------------------- Chase Intermediate Term Bond Fund 6 Fund Commentary ----------------------------------------------------------------------------- Chase U.S. Government Securities Fund 8 Fund Commentary ----------------------------------------------------------------------------- Chase Income Fund 10 Fund Commentary ----------------------------------------------------------------------------- Chase Balanced Fund 12 Fund Commentary ----------------------------------------------------------------------------- Chase Equity Income Fund 15 Fund Commentary ----------------------------------------------------------------------------- Chase Small Capitalization Fund 18 Fund Commentary ----------------------------------------------------------------------------- Chase Core Equity Fund 21 Fund Commentary ----------------------------------------------------------------------------- Chase Equity Growth Fund 24 Fund Commentary ----------------------------------------------------------------------------- Portfolios of Investments 27 ----------------------------------------------------------------------------- Fund Financial Statements 49 ----------------------------------------------------------------------------- Portfolio Financial Statements 79 Highlights - Domestic equity and fixed-income markets endured a rocky period during the first half of the year. - The streak of new economy stock outperformance came to a halt, and the divergence between those stocks and old economy stocks began to diminish. - Amid a growing federal budget surplus backdrop, the U.S. Treasury's buyback program prompted higher long-term Treasury prices, leading to an inverted yield curve. --------------------------------------------------- NOT FDIC INSURED May lose value / No bank guarantee --------------------------------------------------- -------------------------------------------------------------------------------- CHASE FUNDS -------------------------------------------------------------------------------- Chairman's Letter August 1, 2000 Dear Shareholder: We are pleased to present this semi-annual report for the Chase Funds for the six months ended June 30, 2000. To help you analyze your investment, this report gives you specific information on your Fund's holdings, performance, management strategies and outlook. Old Economy/New Economy: An End of the Extremes The first half of 2000 was rocky for domestic equity and fixed-income markets. At first, new economy outperformance continued, whereby technology-related stocks appreciated at the expense of all others. This was evident in the Nasdaq, which was up 15.42% in the first two months of the year, compared with a loss of 7% for the S&P 500. This trend carried into March, with the Nasdaq cresting to its 2000 high of 5,048 on March 10. Although there was no single catalyst that caused the new economy's stumble, Nasdaq investors were on a bumpy ride for the remainder of the period as the index fell to a low of 3,164 on May 23, before rising to 4,064 on June 21, and ending at 3,966. The S&P 500 was flat (-0.4%), proving less volatile than the Nasdaq. It became clear that the Federal Reserve Board's tight money policies were taking effect. When the Fed raised rates in May, the market was in the doldrums. Economic reports suggested, however, that rates were impacting the economy, and the potential for slower growth and an end to tightenings allowed for a June rally. The best performing S&P 500 sectors were healthcare, energy, technology and utilities. By capitalization, mid-caps outperformed. Treasury Buyback Program Has Big Impact on Bonds While the economic state is a driver among bonds, one cannot overlook the factor of the Treasury's buyback program for longer-dated Treasuries given the growing federal budget surplus. With normal supply-and-demand considerations taking hold, investors bid up the prices of long-term Treasuries, resulting in an inverted yield curve, with higher yields for shorter-term issues. The program caused "spread" sectors to underperform, which is unusual when the Fed is in a tightening cycle. Undoubtedly, the big issue is whether the economy can achieve a soft landing, allowing the Fed to take its foot off the brakes. Regardless, our equity fund managers continue to pick what they believe are the best stocks across sectors, those with potential to increase earnings in a variety of economic scenarios. Our bond fund managers are focused on adding value through individual security selection as well as sector allocations. On behalf of the management team, and everyone at Chase Funds, we thank you for your business. Sincerely yours, [Graphic; Signature of Sarah E. Jones] Sarah E. Jones Chairman 1 -------------------------------------------------------------------------------- CHASE MONEY MARKET FUND As of June 30, 2000 (Unaudited) -------------------------------------------------------------------------------- How the Fund Performed Chase Money Market Fund had a total return of 2.89% (Premier Shares), for the six months ended June 30, 2000. As of the last day of the period, the Fund had an annualized dividend yield of 6.15% (Premier Shares). How the Fund Was Managed The management team's decision to extend the Fund's average-weighted duration during the first quarter, as interest rates rose, contributed positively to performance in January, February and March. In the second quarter, the management team continued to use the rising rate environment as an opportunity to purchase higher-yielding, longer-duration paper that should help shield the Fund from subsequent drops in rates. Where the Fund May Be Headed In the management team's view, there will likely be one more Fed rate hike over the remainder of this year, most likely at the Federal Open Market Committee's meeting on August 22. While noting that the US economy has indicated hints of a slowdown, the team's view is that it may be the third quarter before the pace of any cooling can be confirmed. In the meantime, the expected strategy is one of diversification among high quality securities and taking advantage of any further interest rate hikes by extending duration to capture yield for shareholders. 2 CHASE MONEY MARKET FUND As of June 30, 2000 (Unaudited) Maturity Schedule 1-14 days 64.50% 15-30 days 7.08% 31-60 days 7.02% 61-90 days 7.65% 91-180 days 2.99% 181-270 days 7.69% 270+ days 3.07%
7-Day Avg. Yield Premier Shares 6.18% Investor Shares 6.08%
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 $250,000 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. 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. 3 -------------------------------------------------------------------------------- CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND As of June 30, 2000 (Unaudited) -------------------------------------------------------------------------------- How the Fund Performed Chase Short-Intermediate Term U.S. Government Securities Fund (Premier Shares) had a total return of 2.78% in the six months ended June 30, 2000, compared to a total return of 3.00% for the Lehman 1-3 Year Government Index. How the Fund Was Managed The Fund began 2000 with a shorter-than-benchmark duration, and this proved detrimental to performance in the first quarter. While the Fund's exposure to non-Treasury sectors was also a negative factor, this was offset by the fact that the Fund was concentrated in the short end of the yield curve. As the first quarter progressed, the management team took advantage of widening yield spreads between Treasuries and other sectors to increase the Fund's yield by adding to government agency securities. The Fund entered the second quarter with a relatively neutral duration strategy and this generally helped the Fund maintain its performance in the crosswinds created by the strong economy's upward pressure on rates and the Treasury's buyback program's downward pressure. The Fund also benefited from its yield curve strategy as it had a barbell in place when the yield curve inverted and began adjusting back to neutral given the expectation that the curve would correct back to a more normal slope. The management team maintained the Fund's exposure to mortgage and agency securities due to historically-high yield spreads, and within mortgages began concentrating on GNMA issues for several reasons: the explicit government guarantee; higher yields that don't fully reflect the guarantee; a high degree of convexity, and; a lower likelihood of being adversely affected by mortgage prepayments. Where the Fund May Be Headed Moving forward, the management team intends to continue to focus on GNMA issues for the reasons cited above and to adjust the portfolio in a prudent manner as the status of the economy becomes clear. 4 CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND As of June 30, 2000 (Unaudited) Average Annual Total Returns
Since Inception 1 Year 3 Years 5 Years (4/1/93) ------------------------------------------------------------------------------ Premier Shares 3.69% 4.89% 4.76% 4.51% ------------------------------------------------------------------------------ Investor Shares 3.44% 4.76% 4.68% 4.45% ------------------------------------------------------------------------------
Life of Fund Performance* [Line chart data]
Chase Lipper Lehman Lehman Short-Intermediate Short-Intermediate Intermediate 1-3 Year Term U.S. Government U.S. Government Government Government Securities Fund Funds Index Index Index 4/93 10000 10000 10000 10000 6/93 10090 10166 10197 10111 6/94 10080 10135 10177 10265 6/95 10908 10969 11169 11052 6/96 11308 11437 11721 11657 6/97 11928 12179 12535 12423 6/98 12744 13046 13585 13266 6/99 13278 13522 14186 13935 6/00 13769 14057 14823 14612
[End Line data *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 June 30, 2000. 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 $250,000 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 Funds 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. 5 -------------------------------------------------------------------------------- CHASE INTERMEDIATE TERM BOND FUND As of June 30, 2000 (Unaudited) -------------------------------------------------------------------------------- How the Fund Performed Chase Intermediate Term Bond Fund (Premier Shares) had a total return of 3.26% in the six months ended June 30, 2000, compared to a total return of 3.99% for the Lehman Aggregate Index. How the Fund Was Managed The Fund began 2000 positioned for continued strength in the US economy, and as such was short-to-neutral its benchmark duration. When the US Treasury announced and began its program of buying back longer-dated Treasuries, causing the yield curve to invert and longer Treasuries to outperform dramatically, the management team attempted to extend duration to take advantage of the rally. Of substantial benefit during the first quarter's rally was the Fund's yield curve strategy as the portfolio had significant exposure to 20-year securities, the strongest part of the curve. On a sector level, the Fund benefited in the first quarter from its exposure to mortgages, and the management team took advantage of widening yield spreads between Treasuries and other sectors to increase the Fund's yield substantially, especially by adding to corporate and agency positions. The Fund's overweight position in "spread" sectors was detrimental to relative performance in April and May as longer-dated Treasuries continued to outperform with the support of the Treasury buyback program, but this was somewhat offset by positions in strong-performing longer paper during the June rally. The Fund's longer duration had the opposite effect of the "spread" sector overweight, causing underperformance in May, as rates on securities of ten years and longer rose, and then helping in the June rally. Where the Fund May Be Headed As the reporting period ended, the management team had begun increasing mortgage exposure given its belief that the market could be in a trading range and, therefore, it should be advantageous to hold higher-yielding securities without the extra credit and supply risks of corporate bonds. Additionally, the management team intends to continue to adjust the portfolio in a prudent manner as the status of the economy becomes clear. 6 CHASE INTERMEDIATE TERM BOND FUND As of June 30, 2000 (Unaudited) Average Annual Total Returns
Since Inception 1 Year 3 Years 5 Years (10/3/94) ---------------------------------------------------------------------------- Premier Shares 3.69% 4.93% 4.83% 6.05% ---------------------------------------------------------------------------- Investor Shares 3.44% 4.78% 4.74% 5.98% ----------------------------------------------------------------------------
Life of Fund Performance* [Line chart data]
Chase Lipper Lehman Intermediate Intermediate Lehman Intermediate Term Bond Grade Debt Aggregate Gov't/Credit Fund Funds Index Index Index 10/94 10000 10000 10000 10000 6/95 11069 11042 11187 10947 6/96 11439 11565 11747 11494 6/97 12129 12484 12705 12324 6/98 13200 13692 14044 13376 6/99 13513 14032 14483 13935 6/00 14013 14558 15142 14521
[End Line data] *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/ Credit Index (formerly the Lehman Intermediate Gov't./Corp. Index), the Lehman Aggregate Index and the Lipper Intermediate Grade Debt Funds Index from October 31, 1994 to June 30, 2000. 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 $250,000 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/Credit 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. 7 -------------------------------------------------------------------------------- CHASE U.S. GOVERNMENT SECURITIES FUND As of June 30, 2000 (Unaudited) -------------------------------------------------------------------------------- How the Fund Performed Chase U.S. Government Securities Fund (Premier Shares) had a total return of 4.37% in the six month period ended June 30, 2000, compared to a total return of 4.97% for the Lehman Government Index. How the Fund Was Managed Beginning the year with a longer-than-benchmark duration, the Fund benefited as yields fell in response to the U.S. Treasury's program to buy back longer-dated securities. Although the Fund was underexposed to the Treasury sector in general during the quarter, Treasury (and mortgage) exposure was concentrated in the long end of the yield curve, which outperformed dramatically. As the first quarter progressed, the management team took advantage of widening yield spreads between Treasuries and other sectors to increase the Fund's yield profile by adding to non-GNMA government agency positions. The Fund entered the second quarter with a relatively neutral duration and yield curve strategy, and this generally helped the Fund maintain its performance in the crosswinds created by the strong economy's upward pressure on rates and the Treasury's buyback program's downward pressure. The management team maintained the Fund's exposure to mortgage and agency securities due to historically-high yield spreads, and within mortgages began concentrating on GNMA issues for several reasons: the explicit government guarantee; higher yields that don't fully reflect the guarantee; a high degree of convexity, and; a lower likelihood of being adversely affected by mortgage prepayments. Where the Fund May Be Headed Moving forward, the management team intends to continue its focus on GNMA issues for the reasons cited above and to adjust the portfolio in a prudent manner as the status of the economy becomes clear. 8 CHASE U.S. GOVERNMENT SECURITIES FUND As of June 30, 2000 (Unaudited) Average Annual Total Returns
Since Inception 1 Year 3 Years 5 Years (4/1/93) ---------------------------------------------------------------------------- Premier Share s 4.26% 6.23% 5.74% 6.27% ---------------------------------------------------------------------------- Investor Shares 4.00% 6.09% 5.66% 6.21% ----------------------------------------------------------------------------
Life of Fund Performance* [Line chart data]
Chase Lipper U.S. Government General Lehman Securities U.S. Government Government Fund Funds Index Index 4/93 10000 10000 10000 6/93 10530 10252 10289 6/94 9999 9937 10151 6/95 11749 10989 11375 6/96 12100 11383 11887 9/97 12960 12227 12766 6/98 14575 13446 14203 6/99 14904 13662 14635 6/00 15535 14180 15364
[End Line data] *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 June 30, 2000. 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 $250,000 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. 9 -------------------------------------------------------------------------------- CHASE INCOME FUND As of June 30, 2000 (Unaudited) -------------------------------------------------------------------------------- How the Fund Performed Chase Income Fund (Premier Shares) had a total return of 2.78% in the six months ended June 30, 2000, compared to a total return of 4.18% for the Lehman Government/Credit Index. How the Fund Was Managed The Fund began 2000 positioned for continued strength in the US economy, and as such was short-to-neutral its benchmark duration. When the US Treasury announced and began its program of buying back longer-dated Treasuries, causing the yield curve to invert and longer Treasuries to outperform dramatically, the management team attempted to extend duration to take advantage of the rally. Of substantial benefit during the first quarter's rally was the Fund's yield curve strategy, as the portfolio had significant exposure to longer-term issues. As the quarter progressed, the management team took advantage of widening yield spreads between Treasuries and other sectors to increase the Fund's yield substantially, especially by adding to corporate and agency positions. The Fund entered the second quarter positioned for continued strength in the economy and an actively-tightening Fed posture. Specifically, the Fund was overweight in non-Treasury "spread" sectors, which tend to outperform in a rising-interest rate environment. This proved beneficial in April and early May but, when economic data softened in late May and early June, the bond market shifted gears radically and began to rally. While this rally did not support the Fund's strategy, the management team felt that such a sharp reversal on limited data was a case of overreaction. Instead of restructuring the entire portfolio, therefore, the team preferred to make more limited adjustments. Where the Fund May Be Headed Moving forward, the management team intends to continue to adjust the portfolio in a prudent manner as the status of the economy becomes clear. On a sector level, the team is concerned about excessive corporate supply, particularly among telecommunications issuers. 10 CHASE INCOME FUND As of June 30, 2000 (Unaudited) Average Annual Total Returns 1 Year 3 Years 5 Years 10 Years ---------------------------------------------------------------------------- Premier Share s 2.66% 5.14% 5.42% 6.60% ---------------------------------------------------------------------------- Investor Shares 2.46% 5.04% 5.36% 6.57% ----------------------------------------------------------------------------
10 Year Performance* [Line chart data]
Lipper Chase Corporate Debt Lehman Income A Rated Funds Government/Credit Fund Index Index 6/90 10000 10000 10000 6/91 10713 10977 11022 6/92 12069 12619 12585 6/93 13483 14328 14240 6/94 13097 14000 14032 6/95 14547 15775 15823 6/96 15310 16468 16560 6/97 16297 17821 17843 6/98 18075 19733 19857 6/99 18452 19971 20392 6/00 18947 20614 21264
[End Line data] *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 Gov't/Credit Index (formerly the Lehman Gov't/Corp. Index) and the Lipper Corporate Debt A Rated Funds Index from June 30, 1990 to June 30, 2000. 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 $250,000 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/Credit 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. 11 -------------------------------------------------------------------------------- CHASE BALANCED FUND As of June 30, 2000 (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 2.68% (Premier shares) for the six months ended June 30, 2000, versus a (0.43)% return from the S&P 500 Index. How the Fund was managed Equity markets experienced a difficult first half as the stocks of companies in the technology, telecommunications and Internet-related sectors continued their meteoric rise in the first three months, only to come crashing to earth during April and May. Fixed income served to smooth this volatility, however, and provided a boost to the Fund's performance. In spite of its volatility, technology stocks made a greater contribution to performance than any other equity sector. Our focus on leadership companies with strong earnings growth prospects helped performance. It was, however, a measure of the turmoil in technology that the Fund's individual best and worst performers were both technology stocks. Semiconductor company Intel was the leading performer, while Microsoft plunged in the face of a potential break-up. Defensive sectors benefited from the uncertainty. Stocks in the utilities, healthcare and energy sectors all rose. Utilities were helped further by fears of rising interest rates, while pharmaceutical companies returned to favor after a lengthy period of concern regarding their poor drug pipelines. Among utilities, Enron showed particular strength, while healthcare companies Pfizer and Warner-Lambert made worthwhile contributions. Rising oil and gas prices boosted energy stocks. There were, however, disappointments outside technology. Most notably, consumer cyclicals fell sharply, with consumer staples also garnering disappointments. Among others, Wal-Mart Stores, Home Depot and Procter & Gamble fell sharply. Communications services stocks were also disappointing, with companies such as AT&T and Sprint making stock price losses. Fixed income had a broadly positive period, as prices firmed following early-June employment data, which suggested that Fed rate hikes had succeeded in subduing economic growth. In addition, 30-year Treasury yields fell sharply, creating an inverted yield curve. Where the Fund may be headed Both equities and bonds await further monthly data to confirm that growth is slowing. This should reduce market uncertainty. In the long term, we continue to seek stocks with superior earnings growth prospects. While there has been considerable recent volatility in technology stocks, we believe that much of the economy's growth potential remains locked within this industry. 12 CHASE BALANCED FUND As of June 30, 2000 (Unaudited) Percentage of Total Portfolio Investments [Pie chart data] Technology (22.6%) Financial (13.8%) Consumer Cyclicals (12.9%) Mortgage Backed Pass Through Securities (12.5%) Health Care (8.0%) Utilities (6.3%) U.S. Treasurey Securities (6.0%) Energy (5.3%) Capital Goods (4.9%) Consumer Staples (2.6%) U.S. Government Agency Securities (2.2%) Cash Equivalent & Short-Term Paper (1.8%) Transportation (0.6%) Basic Materials (0.5%)
[End Pie chart data] Top Ten Equity Holdings of the Portfolio 1. General Electric Co. (2.8%) A diversified manufacturing, technology and services company. Operations include appliance manufacturing, capital services, information services and electrical distribution. 2. Intel Corp. (2.2%) Designs, manufactures and sells computer components and related products. Major products include microprocessors, chipsets, embedded processors and microcontrollers, flash memory products, graphics products, network and communications products, system management software, conferencing products and digital imaging products. 3. Microsoft Corp. (2.0%) Develops, manufactures, licenses and supports computer software products. 4. Cisco Systems, Inc. (2.0%) Supplies data networking products to the corporate enterprise and public wide area service provider markets. Products include routers, LAN switches, frame relay/ATM and remote access concentrators. 5. Exxon Mobil Corp. (1.9%) Operates petroleum and petrochemicals businesses on a worldwide basis. Operations include exploration and production of oil and gas. 6. American International Group, Inc. (1.8%) Writes property and casualty insurance and life insurance and provides a variety of insurance and insurance-related services through its subsidiaries in the U.S. and overseas. 7. Wal-Mart Stores, Inc. (1.8%) The "Wal-Mart" Company's discount stores and "Supercenters" offer merchandise such as apparel, housewares, small appliances, electronics, hardware and other products. 8. Pfizer, Inc. (1.8%) A research-based, global pharmaceutical company that discovers, develops, manufactures and markets medicines for humans and animals. Its products include prescription pharmaceuticals, non-prescription self- medications and animal health products. 9. American Express Co. (1.5%) Through its subsidiaries, the Company provides travel-related, financial advisory and international banking services around the world. Its products include the American Express Card, the Optima Card and American Express Travelers Cheques. 10. Citigroup, Inc. (1.4%) 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 19.2% of the Portfolio's market value of investments. Portfolio holdings are subject to change at any time. 13 CHASE BALANCED FUND As of June 30, 2000 (Unaudited) Average Annual Total Returns
1 Year 3 Years 5 Years 10 Years ---------------------------------------------------------------------------- Premier Share s 11.89% 16.84% 17.04% 12.91% ---------------------------------------------------------------------------- Investor Shares 11.59% 16.65% 16.93% 12.85% ----------------------------------------------------------------------------
10 Year Performance* [Line chart data]
Chase Lipper Lehman S&P Balanced Balanced Gov't./Credit 500 Fund Funds Index Index Index 6/90 10000 10000 10000 10000 6/91 10799 10906 11020 10736 6/92 11999 12448 12580 12174 6/93 13433 14235 14235 13831 6/94 13112 14349 14028 14026 6/95 15330 16575 15820 17676 6/96 17305 19032 16555 22264 6/97 21105 22957 17836 29983 6/98 25987 27186 19849 39024 6/99 30081 30324 20386 47902 6/00 33662 31674 21258 51369
[End Line data] *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 Gov't/Credit Index (formerly the Lehman Intermediate Gov't/Credit Index), the Standard & Poor's 500 Index and the Lipper Balanced Funds Index from June 30, 1990 to June 30, 2000. 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 $250,000 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 Gov't/Credit 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. 14 -------------------------------------------------------------------------------- CHASE EQUITY INCOME FUND As of June 30, 2000 (Unaudited) -------------------------------------------------------------------------------- How the Fund performed Chase Equity Income Fund, which seeks to invest in securities that provide both capital appreciation and current income, generated a total return of 1.44% (Premier shares), compared to a (0.43)% return from the S&P 500 Index, for the six months ended June 30, 2000. How the Fund was managed The Fund's defensive qualities served it well in a difficult period. While the broad S&P 500 Index had an exceptionally volatile six months, and recorded a marginal loss, the Fund achieved a small gain. The Fund has a relatively light weighting in high-beta stocks in sectors like technology, and therefore avoided the worst market instability. It tended to fall less than the S&P 500 Index in the months when the market declined, while rising almost as much when the market recovered. Many of the biggest gains came from the stocks of healthcare companies. These stocks had failed to participate in the technology-fueled late 1999 market rally and their prices had reached extremely depressed levels. Much of the price weakness had been caused by anticipation of legislation that would reduce the prices Medicare patients pay for drugs. But the price falls appeared overdone, and as technology stock prices started to fall, many investors sought refuge in healthcare stocks, including Pfizer and Eli Lilly. Technology companies, ironically, also made a contribution to performance. In spite of the sharp correction that hit the sector in March, April and May, the stock prices of some companies with leading technologies were still ahead at the end of the six months. Intel, which commands premium pricing for its Pentium semiconductor chips, made the greatest individual contribution to performance. Texas Instruments was also strong. But there was a considerable divergence of performance in the sector. Microsoft stock plummeted as the software giant's break-up appeared increasingly probable. The stock was the single biggest destroyer of the Fund's value. Other technology disappointments were Lucent Technologies and Motorola. Elsewhere, there were few broad themes and performance was achieved almost on a stock-by-stock basis. In financials, groups that were active in the financial markets achieved stock price gains, while traditional retail and commercial banks fell back. As a result, Merrill Lynch rose in price, while SunTrust Banks fell back. Procter & Gamble was a notable faller after failing to meet first quarter earnings expectations. Where the Fund may be headed A firm market trend should emerge as it becomes clear whether Fed rate hikes have succeeded in subduing economic growth and preventing higher inflation. 15 CHASE EQUITY INCOME FUND As of June 30, 2000 (Unaudited) Percentage of Total Portfolio Investments [Pie chart data] Technology (25.6%) Financial (15.1%) Health Care (13.4%) Utilities (10.8%) Cash Equivalent & Short-Term Paper (8.2%) Consumer Cyclicals (7.8%) Capital Goods (5.9%) Energy (5.9%) Consumer Staples (5.3%) Basic Materials (2.0%)
[End Pie chart data] Top Ten Equity Holdings of the Portfolio 1. Intel Corp. (4.4%) Designs, manufactures and sells computer components and related products. Major products include microprocessors, chipsets, embedded processors and microcontrollers, flash memory products, graphics products, network and communications products, system management software, conferencing products and digital imaging products. 2. General Electric Co. (4.1%) Develops, manufactures and markets products for the generation, distribution and utilization of electricity. Through General Electric Capital Services, Inc., offers a variety of financial services including mutual fund management, financing, asset management and insurance. General Electric also owns the National Broadcasting Company. 3. International Business Machines Corp. (3.7%) Provides technologies, systems, products, services, software and financing. It offers products through its global sales and distribution organization, as well as through a variety of third party distributors and resellers. 4. Texas Instruments, Inc. (3.2%) Provides semiconductor products, as well as designs and supplies digital signal processing and analog technologies. 5. American International Group, Inc. (3.2%) Writes property and casualty insurance and life insurance and provides a variety of insurance and insurance- related services through its subsidiaries in the U.S. and overseas. 6. Oracle Corp. (3.1%) Supplies software for enterprise information management. It offers databases and relational servers, application development and decision support tools and enterprise business applications 7. Citigroup, Inc. (3.1%) Diversified financial services holding company that provides a broad range of financial services to consumer and corporate customers around the world. Its services include investment banking, retail brokerage, corporate banking and cash management products and services. 8. Microsoft Corp. (2.8%) Develops, manufactures, licenses and supports computer software products. 9. Pfizer, Inc. (2.7%) A research-based, global pharmaceutical company that discovers, develops, manufactures and markets medicines for humans and animals. Its products include prescription pharmaceuticals, non-prescription self- medications and animal health products. 10. Morgan Stanley Dean Witter & Co. (2.6%) Provides financial and investment products and services worldwide. It offers securities investment, asset management and credit and transaction services. Its products include mutual funds and Discover credit cards. Top 10 equity holdings comprised 32.9% of the Portfolio's market value of investments. Portfolio holdings are subject to change at any time. 16 CHASE EQUITY INCOME FUND As of June 30, 2000 (Unaudited) Average Annual Total Returns
1 Year 3 Years 5 Years 10 Years ---------------------------------------------------------------------------- Premier Shares 3.82% 16.41% 20.72% 14.97% ---------------------------------------------------------------------------- Investor Shares 3.57% 16.22% 20.60% 14.91% ----------------------------------------------------------------------------
10 Year Performance* [Line chart data]
Lipper Chase Equity Large Cap Value S&P 500 Income Fund Funds Index Index 6/90 10000 10000 10000 6/91 10572 10674 10736 6/92 11591 12183 12174 6/93 13455 14206 13831 6/94 13349 14637 14026 6/95 15740 17846 17676 6/96 19420 21962 22264 6/97 25583 28361 29983 6/98 32193 35390 39024 6/99 38866 41274 47902 6/00 40352 40326 51369
*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 Large Cap Value Funds Index from June 30, 1990 to June 30, 2000. 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 $250,000 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 Large Cap Value Funds 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. 17 -------------------------------------------------------------------------------- CHASE SMALL CAPITALIZATION FUND As of June 30, 2000 (Unaudited) -------------------------------------------------------------------------------- How the Fund performed Chase Small Capitalization Fund, which seeks capital appreciation through investment in small capitalization stocks, provided a total return of 11.86% (Premier shares) for the six months ended June 30, 2000, outperforming the S&P 600 Index, which had a return of 6.93%. How the Fund was managed During the first six months of 2000, small capitalization stocks ended a long period of underperformance. Fueled by outstanding earnings growth, they have consistently outperformed. While the large-cap S&P 500 Index was virtually flat for the period with a fall of -0.43%, the small-cap S&P 600 Index rose 6.93%. In the first quarter, small-caps reported significantly higher earnings growth than large caps. This was the first time in six quarters that they had done so. Technology stocks made the greatest contribution to Fund performance in spite of considerable volatility. The technology-laden Nasdaq Index experienced its most volatile six-month period in 15 years. Management's decision to sell some of the more highly valued names during April helped the Fund avoid much of the technology stock correction that gathered pace over the next few weeks. Among the Fund's leading technology stocks were Actel, Varian and Molecular Devices. In the capital goods sector, a number of technology-oriented stocks performed exceptionally well. Among them were Vishay Intertechnology, an electronic components manufacturer, and Hadco Corp. Hadco, a manufacturer of advanced electronic interconnect products, was acquired during the period by Sanmina Corp, an electronics contract manufacturer which is also a fund holding. The run-up in the prices of oil and gas drove stock price gains among many energy companies. As these energy price rises appeared increasingly sustainable, so the stock prices of companies involved in activities like exploration and production rose. The Fund held stocks such as Pride International, Atwood Oceanics and Louis Dreyfus Natural Gas Co. Healthcare stocks had a strong six months as the mapping of the human genome sparked anticipation of a new era in drug discovery. There were significant rises in the prices of generic drug, specialty pharmaceutical and biotechnology companies. Leading healthcare names included Province Healthcare, Inhale Therapeutic Systems and King Pharmaceuticals. Where the Fund may be headed Analysts' forecasts suggest that small-capitalization stocks should continue to generate higher earnings growth than large stocks for the rest of this year. This should lead to continued outperformance of the large-cap universe. Such an outlook depends, however, on the success of recent Fed rate hikes in subduing economic growth. 18 CHASE SMALL CAPITALIZATION FUND As of June 30, 2000 (Unaudited) Percentage of Total Portfolio Investments [Pie chart data] Technology (32.6%) Consumer Cyclicals (20.9%) Healthe Care (17.4%) Financial (8.1%) Energy (5.2%) Capital Goods (5.0%) Utilities (3.5%) Cash Equivalent & Short-Term Paper (3.0%) Basic Materials (1.3%) Real Estate (1.2%) Transportation (1.2%) Consumer Staples (0.6%)
[End Pie chart data] Top Ten Equity Holdings of the Portfolio 1. Samina Corp. (3.2%) Designs, manufactures and markets a wide range of analog and mixed-signal semiconductors, including integrated circuits, discrete circuits and assembly products. Its devices are used in computer, communications, industrial, military-aerospace and automotive applications. 2. Molecular Devices Corp. (2.7%) Designs, develops, manufacturers and markets bio-analytical measurement systems, including software and consumables. Its products are designed to accelerate and improve the cost effectiveness of the drug discovery and development process. Molecular's systems have applications in many aspects of life science, including therapeutic development. 3. Actel Corp. (2.3%) Designs, develops, manufactures and markets various non- volatile memory and logic integrated circuits using proprietary technology. Its devices are used in products for telecommunications, computers, networking, image processing, industrial and military applications and avionics. 4. Varian, Inc. (2.0%) Develops, manufacturers, sells and services a variety of scientific instruments and vacuum technologies. It supplies analytical and research instruments and related equipment for studying the chemical composition of a range of substances, as well as develops nuclear magnetic resonance spectrometers and vacuum products. 5. Black Box Corp. (1.9%) A worldwide direct marketer and technical service provider of computer communications and networking equipment and services. Catalogs offer businesses throughout the world access to numerous computer com- munications and networking products. It sells products primarily to businesses under the BLACK BOX private label. 6. Cree, Inc. (1.7%) Develops and manufactures semiconductor materials and electronic devices made from silicon carbide (SiC). It uses proprietary technology to make enabling compound semiconductors such as blue and green light emitting diodes, SiC crystals used in the production of unique gemstones and SiC wafers that are sold for device production and research. 7. Province Healthcare Co. (1.7%) Provides health care services in non-urban markets in the United States. It owns or leases acute care hospitals in several states. Province also provides management services to primarily non-urban hospitals in the United States and Puerto Rico. 8. PerkinElmer, Inc. (1.7%) Provides products and systems to the medical, pharmaceutical, telecommunications, semiconductor and photographic markets located worldwide. Its products include seals and bellows, hardware and software, opto-electronics and bioanalytic and diagnostic instrument systems. 9. BJ's Wholesale Club, Inc. (1.7%) Is a merchandise wholesale club chain. It sells brand name food and general merchandise at discounted prices through clubs in the eastern United States. 10. Vishay Intertechnology, Inc. (1.6%) Manufactures a broad line of discrete passive electronic components and discrete active electronic components, particularly resistors, capacitors, inductors, diodes and transistors. Top 10 equity holdings comprised 20.5% of the Portfolio's market value of investments. Portfolio holdings are subject to change at any time. 19 CHASE SMALL CAPITALIZATION FUND As of June 30, 2000 (Unaudited) Average Annual Total Returns
Since Inception 1 Year 3 Years 5 Years 4/1/93 ---------------------------------------------------------------------------- Premier Shares 21.01% 11.49% 18.79% 14.73% ---------------------------------------------------------------------------- Investor Shares 20.58% 11.29% 18.66% 14.64% ----------------------------------------------------------------------------
Life of Fund Performance* [Line chart data]
Chase Lipper Small Small Cap S&P Capitalization Core Funds 600 Fund Index Index 4/93 10000 10000 10000 6/93 10000 10112 10217 6/94 9550 10437 10408 6/95 11450 12588 12525 6/96 15900 16345 15782 6/97 19540 18813 19208 6/98 22382 21998 22941 6/99 22377 21151 22411 6/00 27079 26147 25645
[End Line data] *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 Cap Core Funds Index from April 1, 1993 to June 30, 2000. 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 $250,000 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 Cap Core Funds 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. 20 -------------------------------------------------------------------------------- CHASE CORE EQUITY FUND As of June 30, 2000 (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 0.93% (Premier shares), compared to (0.43)% from the S&P 500 Index, for the six months ended June 30, 2000. How the Fund was managed Equity markets experienced a difficult first half as stocks of companies in the technology, telecommunications and Internet-related sectors continued their meteoric rise in the first three months, only to come crashing down during April and May. The technology-laden Nasdaq Index fell 2.54% in the period, but this small loss masked considerable volatility. In spite of this, the technology sector made the greatest contribution to Fund performance. Our focus on leadership companies with strong earnings growth prospects helped performance. But it was a measure of technology turmoil that both the Fund's best and worst performers were technology stocks. Intel, the semiconductor company, was the leading performer, while Microsoft plunged in the face of possible break-up. Defensive sectors benefited from the uncertainty. Stocks in the utilities, healthcare and energy sectors all rose. Utilities were helped further by fears of rising interest rates, while pharmaceutical companies returned to favor after a lengthy period of concern regarding their poor drug pipelines. Among utilities, Enron showed particular strength, while healthcare companies Pfizer and Warner-Lambert made worthwhile contributions. Rising oil and gas prices boosted energy stocks. Investors bought energy company stocks as it appeared increasingly likely that price rises were sustainable and would boost profits. BJ Services, the exploration and production company, made a significant contribution to performance, as did integrated energy giant Royal Dutch Petroleum. There were, however, disappointments outside technology. Most notably, consumer cyclicals fell sharply, with consumer staples also having lackluster results. Companies such as Wal-Mart Stores, Home Depot and Procter & Gamble fell sharply. Communications services stocks were also disappointing, with companies like AT&T and Sprint making stock price losses. Where the Fund may be headed Market uncertainty should recede as it becomes clear whether Fed rate rises have succeeded in subduing economic growth. Employment data reported in early June suggested this was the case, but further monthly data is required to confirm the trend. In the long term, we continue to seek stocks with outstanding earnings growth prospects. While there has been considerable recent volatility in technology stocks, we believe that much of the economy's growth potential remains locked within this sector. 21 CHASE CORE EQUITY FUND As of June 30, 2000 (Unaudited) Percentage of Total Portfolio Investments [Pie chart data] Technology (33.0%) Consumer Cyclicals (15.0%) Financial (13.1%) Health Care (10.8%) Utilities (8.3%) Capital Goods (5.9%) Energy (5.6%) Consumer Staples (3.4%) Cash Equivalent & Short-Term Paper (3.1%) Transportation (1.0%) Basic Materials (0.8%)
[End chart data] Top Ten Equity Holdings of the Portfolio 1. General Electric Co. (4.5%) Develops, manufactures and markets products for the generation, distribution and utilization of electricity. Through General Electric Capital Services, Inc., offers a variety of financial services including mutual fund management, financing, asset management and insurance. General Electric also owns the National Broadcasting Company. 2. Intel Corp. (3.6%) Designs, manufactures and sells computer components and related products. Major products include microprocessors, chipsets, embedded processors and microcontrollers, flash memory products, graphics products, network and communications products, system management software, conferencing products and digital imaging products. 3. Cisco Systems, Inc. (3.2%) Supplies data networking products to the corporate enterprise and public wide area service provider markets. Products include routers, LAN switches, frame relay/ATM and remote access concentrators. 4. Microsoft Corp. (3.2%) Develops, manufactures, licenses and supports computer software products. 5. Exxon Mobil Corp. (3.0%) Operates petroleum and petrochemicals businesses on a worldwide basis. Operations include exploration and production of oil and gas. 6. American International Group, Inc. (3.0%) Writes property and casualty insurance and life insurance and provides a variety of insurance and insurance- related services through its subsidiaries in the U.S. and overseas. 7. Wal-Mart Stores, Inc. (2.9%) The "Wal-Mart" Company's discount stores and "Supercenters" offer merchandise such as apparel, housewares, small appliances, electronics, hardware and other products 8. Pfizer, Inc. (2.8%) A research-based, global pharmaceutical company that discovers, develops, manufactures and markets medicines for humans and animals. Its products include prescription pharmaceuticals, non-prescription self- medications and animal health products. 9. American Express Co. (2.4%) Through its subsidiaries, the Company provides travel-related, financial advisory and international banking services around the world. Its products include the American Express Card, the Optima Card and American Express Travelers Cheques. 10. Citigroup, Inc. (2.2%) 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 30.8% of the Portfolio's market value of investments. Portfolio holdings are subject to change at any time. 22 CHASE CORE EQUITY FUND As of June 30, 2000 (Unaudited) Average Annual Total Returns
Since Inception 1 Year 3 Years 5 Years 4/1/93 ---------------------------------------------------------------------------- Premier Shares 10.32% 22.07% 24.51% 18.77% ---------------------------------------------------------------------------- Investor Shares 10.08% 21.88% 24.39% 18.69% ----------------------------------------------------------------------------
Life of Fund Performance* [Line chart data]
Chase Lipper Core Equity Large Cap Core S&P 500 Fund Funds Index Index 4/93 10000 10000 10000 6/93 10010 10121 10048 6/94 10099 10231 10189 6/95 11627 12349 12840 6/96 14306 15176 16174 6/97 19126 19657 21780 6/98 25015 25464 29348 6/99 31565 30150 34798 6/00 34796 32979 37316
[End Line data] *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 the Lipper Large Cap Core Funds Index from April 1, 1993 to June 30, 2000. 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 $250,000 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 Large Cap Core Funds 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. 23 -------------------------------------------------------------------------------- CHASE EQUITY GROWTH FUND As of June 30, 2000 (Unaudited) -------------------------------------------------------------------------------- How the Fund performed Chase Equity Growth Fund, which seeks to provide capital appreciation through investment in growth stocks, generated a total return of 1.91% (Premier shares), compared to the 2.63% return from the S&P/BARRA Growth Index, for the six months ended June 30, 2000. How the Fund was managed For the first few months of 2000, the divergence between 'old' and 'new' economy stocks continued to grow, as technology valuations became increasingly extended. In March, however, the technology sector began a prolonged and violent correction that lasted through May. By the end of the first half, investors were taking a stock-by-stock approach that rewarded well-managed companies with good prospects, and punished those that disappointed. In spite of the volatility, technology names still made the greatest contribution to performance. The stocks of companies with perceived competitive advantage and strong growth prospects held up relatively well. Names like Intel, the maker of Pentium semiconductor chips, EMC Corp and Applied Materials performed well. But there was a wide dispersion of performance in the sector. Microsoft stock--dogged by fears of a corporate break-up--fell sharply. Some of Internet stocks also ended the period in negative territory. America Online and Yahoo both nursed substantial losses. Many defensive 'old economy' names had a strong first half. Healthcare stocks, in particular, bounced back from depressed levels. These companies had been overshadowed during 1999 by fears of legislation that would reduce the prices Medicare patients pay for drugs. But the price falls appeared overdone, and as technology stock prices started to weaken, investors sought refuge in drug stocks like Pfizer, Warner-Lambert and Eli Lilly. Biotechnology companies, like Amgen, received a boost as the mapping of the human genome sparked anticipation of a new era in drug discovery. Investors were unforgiving of stocks that disappointed. Procter & Gamble stock plummeted in early March after the company announced extremely disappointing first quarter earnings. Where the Fund may be headed For the market as a whole, the big question remains whether the economy is slowing to the extent that no further interest-rate rises are necessary. The FOMC refrained from tightening in late June as weaker economic and monetary data suggested that the 175 basis points of tightening over the past year might be beginning to lower the trend rate of economic growth, and to reduce rising price pressures. But the extent of any slowdown is still an open question. 24 CHASE EQUITY GROWTH FUND As of June 30, 2000 (Unaudited) Percentage of Total Portfolio Investments [Pie chart data] Technology (49.8%) Health Care (18.0%) Consumer Cyclicals (13.8%) Capital Goods (6.1%) Financial (6.0%) Consumer Staples (2.5%) Cash Equivalent & Short-Term Paper (2.3%) Utilities (1.5%)
[End Pie chart data] Top Ten Equity Holdings of the Portfolio 1. Intel Corp. (6.2%) Designs, manufactures and sells computer components and related products. Major products include microprocessors, chipsets, embedded processors and microcontrollers, flash memory products, graphics products, network and communications products, system management software, conferencing products and digital imaging products. 2. Cisco Systems, Inc. (5.5%) Supplies data networking products to the corporate enterprise and public wide area service provider markets. Products include routers, LAN switches, frame relay/ATM and remote access concentrators. 3. General Electric Co. (5.5%) Develops, manufactures and markets products for the generation, distribution and utilization of electricity. Through General Electric Capital Services, Inc., offers a variety of financial services including mutual fund management, financing, asset management and insurance. General Electric also owns the National Broadcasting Company. 4. EMC Corp. (5.0%) Provides enterprise storage systems, software, networks and services. 5. Applied Materials, Inc. (4.6%) Develops, manufactures, markets and services semiconductor wafer fabrication equipment and related spare parts for the worldwide semiconductor industry. 6. Pfizer, Inc. (4.6%) A research-based, global pharmaceutical company that discovers, develops, manufactures and markets medicines for humans and animals. Its products include prescription pharmaceuticals, non-prescription self- medications and animal health products. 7. Novellus Systems, Inc. (3.8%) Manufactures, markets and services advanced automated wafer fabrication systems for the deposition of thin films. 8. Microsoft Corp. (3.6%) Develops, manufactures, licenses and supports computer software products. 9. 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. 10. Amgen, Inc. (3.5%) Discovers, develops, manufactures and markets human therapeutics based on cellular and molecular biology. Focuses its research on secreted protein and small molecule therapeutics. Top 10 equity holdings comprised 45.9% of the Portfolio's market value of investments. Portfolio holdings are subject to change at any time. 25 CHASE EQUITY GROWTH FUND As of June 30, 2000 (Unaudited) Average Annual Total Returns
1 Year 3 Years 5 Years 10 Years ---------------------------------------------------------------------------- Premier Share s 20.14% 28.06% 27.81% 17.46% ---------------------------------------------------------------------------- Investor Shares 19.83% 27.84% 27.68% 17.40% ----------------------------------------------------------------------------
10 Year Performance* [Line chart data]
Chase Lipper S&P Equity Growth Large Cap Growth Barra Growth Fund Funds Index Index 6/90 10000 10000 10000 6/91 10083 10578 10893 6/92 11421 12156 12361 6/93 12464 13805 13350 6/94 12189 13978 13315 6/95 14658 17568 17407 6/96 17530 21803 22453 6/97 23799 27896 30645 6/98 32164 36741 41281 6/99 41599 46603 52920 6/00 49982 56077 62771
*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 Large Cap Growth Funds Index from June 30, 1990 to June 30, 2000. 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 $250,000 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 Large Cap Growth Funds 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. 26 -------------------------------------------------------------------------------- CHASE MONEY MARKET FUND Portfolio of Investments -------------------------------------------------------------------------------- As of June 30, 2000 (unaudited) (Amounts in Thousands)
Principal Amount (USD) Issuer Value ---------------------------------------------------------------------------------------- Money Market Instruments -- 99.4% ---------------------------------------------------------------------------------------- U.S. Government Agency Security -- 3.0% --------------------------------------- $10,000 Federal Home Loan Bank, DN, 6.13%, 12/22/00 $ 9,721 (Cost $9,721) State and Municipal Obligation -- 1.5% -------------------------------------- 5,000 Texas State, Taxable, Veterans Housing Assistance, Ser. A-2, FRDO, 6.60%, 07/03/00 5,000 (Cost $5,000) Corporate Notes & Bonds -- 54.1% -------------------------------- Automotive -- 12.5% 10,000 Chrysler Financial Co., LLC, Ser. R, MTN, FRN, 6.74%, 08/18/00 10,006 10,000 Ford Motor Credit Co., MTN, FRN, 6.74%, 08/18/00 9,999 10,000 General Motors Acceptance Corp., MTN, FRN, 7.00%, 08/09/00 10,010 Toyota Motor Credit Corp., MTN, 3,000 5.76%, 07/06/00 3,000 4,000 FRN, 6.80%, 08/18/00 4,000 4,000 FRN, 6.81%, 07/12/00 4,000 ------ 41,015 Banking -- 1.2% 4,000 American Express Centurion Bank, FRN, 6.85%, 09/29/00 4,000 Computers/Computer Hardware -- 0.6% 2,000 IBM Credit Corp., MTN, 5.93%, 08/07/00 2,000 Financial Services -- 26.6% 10,000 Associates Corp. of North America, SUB, FRN, 6.77%, 09/15/00 9,999 12,000 Bear Stearns Co., Inc., Ser. B, MTN, FRN, 6.71%, 07/24/00 11,999 5,000 Bollingbrent LTD Partnership, Ser. 1999, FRN, 6.77%, 07/03/00 5,000 10,000 CIT Group, Inc., MTN, FRN, 6.80%, 09/15/00 Citicorp, Ser. C, MTN, FRN, 9,998 5,000 6.46%, 07/24/00 5,005 9,000 7.31%, 11/22/00 9,008 6,000 Goldman Sachs Group LP, Ser. A, MTN, FRN, #, 6.36%, 07/17/00 6,000 5,000 Homeside Lending, Inc., MTN, FRN, 6.41%, 07/24/00 5,004 5,000 International Lease Finance Corp., FRN, 6.45%, 08/01/00 5,003 Merrill Lynch & Co., Inc., FRN, 5,000 6.72%, 08/14/00 5,000 2,000 MTN, 6.80%, 08/03/00 2,001 Morgan Stanley Dean Witter & Co., 8,000 6.95%, 08/10/00 8,011 5,000 MTN, FRN, 7.32%, 08/14/00 5,011 ------ 87,039 Machinery & Engineering Equipment -- 7.7% Caterpillar Financial Services Corp., Ser. F, 10,000 6.41%, 07/10/00 10,010 5,000 6.89%, 09/01/00 5,001 10,000 John Deere Capital Corp., MTN, FRN, 6.97%, 08/09/00 10,009 ------ 25,020
See notes to financial statements. 27 CHASE MONEY MARKET FUND Portfolio of Investments (Continued) As of June 30, 2000 (unaudited) (Amounts in Thousands)
Principal Amount (USD) Issuer Value ------------------------------------------------------------------------------------------ Money Market Instruments -- Continued ------------------------------------------------------------------------------------------ Telecommunications -- 4.9% $ 6,000 AT&T Corp., FRN, #, 6.24%, 07/13/00 $ 6,000 10,000 SBC Communications, Inc., FRN, #, 6.68%, 08/15/00 9,998 -------- 15,998 Utilities -- 0.6% 2,000 National Rural Utilities Co., Ser. C., MTN, FRN, 6.81%, 09/ 08/00 2,000 -------------------------------------------------------------------------- Total Corporate Notes & Bonds 177,072 (Cost $177,072) -------------------------------------------------------------------------- Commercial Paper -- 19.1% ------------------------- Asset Backed Securities -- 16.1% 3,487 Barton Capital Corp., 6.61%, 07/25/00 3,472 9,463 Blue Ridge Asset Funding Corp., 6.61%, 07/06/00 9,454 6,000 Eureka Securitization Inc., #, 6.70%, 08/09/00 5,957 15,000 Montauk Funding Corp., 6.69%, 08/17/00 14,871 9,560 Old Line Funding Corp., #, 6.60%, 07/17/00 9,532 9,476 Victory Receivables, 6.72%, 07/13/00 9,455 -------- 52,741 Banking -- 3.0% 10,000 Credit Suisse First Boston Corp. (Switzerland), 6.32%, 09/ 13/00 9,874 -------------------------------------------------------------------------- Total Commercial Paper 62,615 (Cost $62,615) -------------------------------------------------------------------------- Certificates of Deposit -- 19.9% -------------------------------- 10,000 Bayerische Hypo- und Vereinsbank AG, 9,997 (Germany), (Yankee), Floating Rate, 6.59%, 07/28/00 5,000 Bayerische Landesbank Girozentrale, 4,998 (Germany), (Yankee), Floating Rate, 6.58%, 07/17/00 10,000 Commerzbank AG, (Germany), (Yankee), 6.55%, 01/08/01 9,999 10,000 Dresdner Bank AG, (Germany), (Yankee), Floating Rate, 6.59%, 07/28/00 9,997 5,000 First Union National Bank, Floating Rate, 6.86%, 09/25/00 5,000 10,000 Landesbank Hessen-Thueringen Girozentrale (Germany), (Yankee), 6.90%, 04/30/01 9,998 10,000 Norddeutsche Landesbank Girozentrale (Germany), (Yankee), 6.60%, 01/18/01 9,997 5,000 Svenska Handelsbanken, Inc., (Sweden), (Yankee), 6.80%, 02/14/01 4,999 -------------------------------------------------------------------------- Total Certificates of Deposit 64,985 (Cost $64,985) -------------------------------------------------------------------------- Repurchase Agreement -- 1.8% ---------------------------- 5,762 Goldman Sachs Group LP, Tri Party, 6.88%, 07/03/00 (Dated 06/30/00, Proceeds $5,765, Secured by FHLMC, $5,795, 8.00%, due 08/01/23; Market Value $5,877) 5,762 (Cost $5,762) ------------------------------------------------------------------------------------------ Total Investments--99.4% $325,155 (Cost $325,155) ------------------------------------------------------------------------------------------
See notes to financial statements. 28 -------------------------------------------------------------------------------- CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND Portfolio of Investments ------------------------------------------------------------------------------- As of June 30, 2000 (unaudited) (Amounts in Thousands)
Principal Amount Issuer Value ------------------------------------------------------------------------------------ Long-Term Investments -- 92.8% ------------------------------------------------------------------------------------ U.S. Treasury Securities -- 16.5% --------------------------------- U.S. Treasury Notes & Bonds, $ 800 5.50%, 12/31/00 $ 796 1,000 5.63%, 02/15/06 970 1,000 6.00%, 08/15/09 992 1,100 6.88%, 05/15/06 1,133 500 7.00%, 07/15/06 518 500 10.75%, 02/15/03 550 ---------------------------------------------------------------------- Total U.S. Treasury Securities 4,959 (Cost $4,958) ---------------------------------------------------------------------- U.S. Government Agency Securities -- 61.0% ------------------------------------------ 1,330 Federal Farm Credit Bank, MTN, 6.90%, 05/01/02 1,328 1,300 Federal Home Loan Bank, 6.79%, 04/17/01 1,298 Federal Home Loan Mortgage Corp., 1,500 6.25%, 10/15/02 1,478 4,500 7.00%, 02/15/03 4,498 1,000 7.38%, 05/15/03 1,010 Federal National Mortgage Association, 1,500 5.25%, 01/15/03 1,440 1,000 6.00%, 05/15/08 933 1,500 6.25%, 11/15/02 1,477 1,000 6.50%, 08/15/04 981 1,000 6.63%, 09/15/09 966 1,000 7.10%, 10/18/04 993 2,000 7.13%, 02/15/05 2,008 ---------------------------------------------------------------------- Total U.S. Government Agency Securities 18,410 (Cost $18,475) ---------------------------------------------------------------------- Mortgage Backed Securities -- 15.3% ----------------------------------- Collateralized Mortgage Obligation -- 4.6% 1,405 Federal Home Loan Mortgage Corp., Ser. 2196, Class MA, 7.00%, 11/15/06 1,388 Residential Mortgage Backed Pass-Through Securities -- 10.7% Federal National Mortgage Association, 894 Pool 190806, 6.00%, 05/01/01 886 2,414 Pool 251901, 6.50%, 08/01/13 2,331 ---------------------------------------------------------------------- Total Mortgage Backed Securities 4,605 (Cost $4,731) ------------------------------------------------------------------------------------ Total Long-Term Investments 27,974 (Cost $28,164) ------------------------------------------------------------------------------------ Short-Term Investment -- 8.9% ------------------------------------------------------------------------------------ U.S. Government Agency Security -- 8.9% --------------------------------------- 2,669 Federal Home Loan Bank, DN, 6.57%, 07/03/00 2,668 (Cost $2,668) ------------------------------------------------------------------------------------ Total Investments -- 101.7% $30,642 (Cost $30,832) ------------------------------------------------------------------------------------
See notes to financial statements. 29 -------------------------------------------------------------------------------- CHASE INTERMEDIATE TERM BOND FUND Portfolio of Investments -------------------------------------------------------------------------------- As of June 30, 2000 (unaudited) (Amounts in Thousands)
Principal Amount (USD) Issuer Value -------------------------------------------------------------------------------------- Long-Term Investments -- 86.6% -------------------------------------------------------------------------------------- U.S. Treasury Securities -- 8.2% ---------------------------------- U.S. Treasury Notes & Bonds, $ 800 5.75%, 06/30/01 $ 794 300 6.13%, 08/15/29 303 600 6.25%, 08/15/23 605 1,900 8.13%, 08/15/19 2,297 ---------------------------------------------------------------------- Total U.S. Treasury Securities 3,999 (Cost $4,016) ---------------------------------------------------------------------- U.S. Government Agency Securities -- 9.0% ----------------------------------------- Federal Home Loan Bank, 1,400 5.40%, 03/01/04 1,324 500 7.00%, 04/02/07 498 Federal Home Loan Mortgage Corp., 1,300 5.75%, 03/15/09 1,184 650 6.25%, 07/15/04 632 800 Federal National Mortgage Association, 6.50%, 08/15/04 785 ---------------------------------------------------------------------- Total U.S. Government Agency Securities 4,423 (Cost $4,512) ---------------------------------------------------------------------- Foreign Government Security -- 1.6% ----------------------------------- 800 Quebec Province (Canada), 7.50%, 09/15/29 786 (Cost $786) Corporate Notes & Bonds -- 38.4% -------------------------------- Aerospace -- 0.7% 365 Raytheon Co., #, 7.90%, 03/01/03 367 Automotive -- 3.3% 800 Daimler Chrysler North America Holding Corp. (Germany), 8.00%, 06/15/10 819 750 TRW, Inc., #, 6.45%, 06/15/01 741 ----- 1,560 Banking -- 1.3% 750 U.S. Bank, NA, 5.70%, 12/15/08 645 Chemicals -- 1.0% 500 Rohm & Haas Co., 7.40%, 07/15/09 497 Computers/Computer Hardware -- 1.6% 800 Hewlett-Packard Co., 7.15%, 06/15/05 801 Consumer Products -- 1.6% 800 Procter & Gamble Co., 6.60%, 12/15/04 784 Electronics/Electrical Equipment -- 1.4% 700 General Electric Capital Corp., MTN, 5.91%, 05/07/01 693 Financial Services -- 11.2% 900 American Express Co., 8.50%, 08/15/01 913 600 Associates Corp. of North America, 6.63%, 05/15/01 596 600 International Lease Finance Corp., 5.95%, 06/01/01 592 800 Lehman Brothers Holdings, Inc., 7.75%, 01/15/05 793 1,000 Merrill Lynch & Co., Inc., MTN, 6.10%, 12/10/01 989 800 Morgan Stanley Dean Witter & Co., 7.75%, 06/15/05 806 National Rural Utilities Cooperative Finance Corp., 300 5.50%, 01/15/05 279 500 6.13%, 05/15/05 475 ----- 5,443
See notes to financial statements. 30 CHASE INTERMEDIATE TERM BOND FUND Portfolio of Investments (Continued) As of June 30, 2000 (unaudited) (Amounts in Thousands)
Principal Amount (USD) Issuer Value ----------------------------------------------------------------------------------------- Long-Term Investments -- Continued ----------------------------------------------------------------------------------------- Food/Beverage Products -- 1.6% $ 800 Coca-Cola Enterprises, 7.13%, 09/30/09 $ 776 Insurance -- 1.5% 750 GE Global Insurance Holding Corp., 7.75%, 06/15/30 745 Oil & Gas -- 2.3% 800 Amerada Hess Corp., 7.88%, 10/01/29 782 330 PEMEX Finance LTD (Cayman Islands), #, 9.03%, 02/15/11 336 ------ 1,118 Paper/Forest Products -- 1.6% 800 International Paper Co., #, 8.13%, 07/08/05 805 Pipelines -- 1.1% 550 Enron Corp., 7.88%, 06/15/03 553 Retailing -- 1.6% 800 Wal-Mart Stores, Inc., 6.88%, 08/10/09 781 Telecommunications -- 4.3% 800 WorldCom, Inc., 7.55%, 04/01/04 795 750 Metronet Communications Corp. (Canada), SUB, 0.00%, 06/15/03 608 650 Vodafone AirTouch PLC (United Kingdom), #, 7.63%, 02/15/05 650 ------ 2,053 Utilities -- 2.3% 440 Cilcorp Inc., 8.70%, 10/15/09 443 700 Israel Electronic Corp. (Israel), MTN, #, 8.25%, 10/15/09 706 ------ 1,149 ------------------------------------------------------------------------ Total Corporate Notes & Bonds 18,770 (Cost $18,844) ------------------------------------------------------------------------ Mortgage Backed Securities -- 29.4% ----------------------------------- Residential Mortgage Backed Pass-Through Securities -- 29.4% 1,051 Federal Home Loan Mortgage Corp., Gold Pool C17245, 7.00%, 11/01/28 1,016 Federal National Mortgage Association, 601 Pool 253033, 7.00%, 02/01/15 589 334 Pool 398212, 6.50%, 02/01/13 323 1,545 Pool 398265, 6.00%, 03/01/28 1,416 895 Pool 429362, 6.00%, 08/01/29 819 900 Pool 442508, 6.00%, 09/01/13 852 2,260 Pool 498091, 6.50%, 05/01/29 2,133 418 Pool 510435, 6.50%, 01/01/15 403 743 Pool 527266, 6.50%, 11/01/14 716 1,494 Pool 528399, 8.00%, 01/01/30 1,500 Government National Mortgage Association, 746 Pool 448704, 7.50%, 10/15/27 741 1,394 Pool 486598, 6.50%, 10/15/28 1,323 1,092 Pool 504549, 7.00%, 09/15/29 1,061 1,497 Pool 508316, 8.00%, 02/15/30 1,513 ------------------------------------------------------------------------- Total Mortgage Backed Securities 14,405 (Cost $14,561) ----------------------------------------------------------------------------------------- Total Long-Term Investments 42,383 (Cost $42,719) -----------------------------------------------------------------------------------------
See notes to financial statements. 31 CHASE INTERMEDIATE TERM BOND FUND Portfolio of Investments (Continued) As of June 30, 2000 (unaudited) (Amounts in Thousands)
Principal Amount (USD) Issuer Value ------------------------------------------------------------------------------ Short-Term Investment -- 12.6% ------------------------------------------------------------------------------ U.S. Government Agency Security -- 12.6% ----------------------------------------- $6,185 Federal Home Loan Bank, DN, 6.57%, 07/03/00 $ 6,183 (Cost $6,183) ------------------------------------------------------------------------------ Total Investments -- 99.2% $48,566 (Cost $48,902) ------------------------------------------------------------------------------
See notes to financial statements. 32 -------------------------------------------------------------------------------- CHASE U.S. GOVERNMENT SECURITIES FUND Portfolio of Investments -------------------------------------------------------------------------------- As of June 30, 2000 (unaudited) (Amounts in Thousands)
Principal Amount Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- 93.4% -------------------------------------------------------------------------------- U.S. Treasury Securities -- 28.0% --------------------------------- U.S. Treasury Notes & Bonds, $ 240 6.13%, 08/15/29 $ 242 300 6.50%, 08/31/01 300 1,000 8.13%, 08/15/19 1,209 ------------------------------------------------------------------ Total U.S. Treasury Securities 1,751 (Cost $1,681) ------------------------------------------------------------------ U.S. Government Agency Securities -- 7.7% ----------------------------------------- Federal National Mortgage Association, 250 6.38%, 06/15/09 238 250 6.50%, 08/15/04 245 ------------------------------------------------------------------ Total U.S. Government Agency Securities 483 (Cost $485) ------------------------------------------------------------------ Mortgage Backed Securities -- 57.7% ----------------------------------- Collateralized Mortgage Obligation -- 1.4% 94 Government National Mortgage Association, Ser. 1999-8, Class A, 6.25%, 06/16/25 90 Residential Mortgage Backed Pass-Through Securities -- 56.3% 383 Federal Home Loan Mortgage Corp., Gold Pool E00766, 7.00%, 12/01/14 376 Federal National Mortgage Association, 283 Pool 252921, 7.50%, 11/01/14 282 597 Pool 511599, 8.00%, 12/01/29 600 464 Pool 523930, 8.00%, 11/01/29 466 645 Pool 525908, 7.00%, 12/01/29 623 Government National Mortgage Association, 393 Pool 434628, 8.00%, 12/15/29 397 250 Pool 473829, 6.50%, 01/15/29 237 199 Pool 509443, 9.00%, 12/15/29 206 323 Pool 510845, 7.50%, 12/15/29 321 ------------------------------------------------------------------ Total Mortgage Backed Securities 3,598 (Cost $3,633) -------------------------------------------------------------------------------- Total Long-Term Investments 5,832 (Cost $5,799) -------------------------------------------------------------------------------- Short-Term Investment -- 5.5% -------------------------------------------------------------------------------- U.S. Government Agency Security -- 5.5% --------------------------------------- 343 Federal Home Loan Bank, DN, 6.57%, 07/03/00 343 (Cost $343) -------------------------------------------------------------------------------- Total Investments -- 98.9% $6,175 (Cost $6,142) --------------------------------------------------------------------------------
See notes to financial statements. 33 -------------------------------------------------------------------------------- CHASE INCOME FUND Portfolio of Investments -------------------------------------------------------------------------------- As of June 30, 2000 (unaudited) (Amounts in Thousands)
Principal Amount (USD) Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- 89.2% -------------------------------------------------------------------------------- U.S. Treasury Securities -- 13.9% --------------------------------- U.S. Treasury Notes & Bonds, $1,400 7.13%, 02/15/23 - $1,556 2,000 7.63%, 02/15/25 - 2,365 3,400 8.13%, 08/15/19 - 4,111 500 11.25%, 02/15/15 737 ---------------------------------------------------------------- Total U.S. Treasury Securities 8,769 (Cost $8,571) ---------------------------------------------------------------- U.S. Government Agency Securities -- 8.3% ----------------------------------------- Federal Home Loan Bank, 1,600 7.25%, 05/13/05 1,614 1,600 7.63%, 05/15/07 1,644 Federal National Mortgage Association, 400 6.00%, 07/15/49 366 400 6.50%, 07/15/49 377 1,250 Government National Mortgage Association, 8.00%, 07/15/49 1,258 ---------------------------------------------------------------- Total U.S. Government Agency Securities 5,259 (Cost $5,243) ---------------------------------------------------------------- Foreign Government Securities -- 2.4% ------------------------------------- Quebec Province (Canada), 750 6.50%, 01/17/06 - 724 800 7.50%, 09/15/29 786 ---------------------------------------------------------------- Total Foreign Government Securities 1,510 (Cost $1,526) ---------------------------------------------------------------- Corporate Notes & Bonds -- 26.7% -------------------------------- Aerospace -- 1.1% 700 Raytheon Co., #, 7.90%, 03/01/03 - 704 Automotive -- 2.9% Ford Motor Credit Co., 1,000 6.25%, 12/08/05 - 936 900 7.38%, 10/28/09 - 871 ------ 1,807 Banking -- 2.3% 800 Bank of America Corp., 7.80%, 02/15/10 - 796 700 Korea Development Bank (South Korea), 6.50%, 11/15/02 - 678 ------ 1,474 Broadcasting/Cable -- 0.8% 500 Comcast Corp., 10.25%, 10/15/01 - 517 Diversified -- 0.8% 500 Textron, Inc., 6.38%, 07/15/04 - 477 Financial Services -- 2.7% Lehman Brothers Holdings Inc., 750 6.63%, 02/05/06 - 701 1,000 MTN, FRN, 6.60%, 09/04/01 - 1,000 ------ 1,701
See notes to financial statements. 34 CHASE INCOME FUND Portfolio of Investments (Continued) As of June 30, 2000 (unaudited) (Amounts in Thousands)
Principal Amount (USD) Issuer Value ----------------------------------------------------------------------------------------- Long-Term Investments -- Continued ----------------------------------------------------------------------------------------- Insurance -- 2.1% $1,000 Conseco, Inc., 8.50%, 10/15/02 - $ 720 600 GE Global Insurance Holding Corp., 7.75%, 06/15/30 - 596 ------ 1,316 Multi-Media -- 2.5% 650 Clear Channel Communications, Inc., 7.88%, 06/15/05 652 1,100 Time Warner Inc., 6.63%, 05/15/29 - 908 ------ 1,560 Oil & Gas -- 1.2% 800 YPF Sociedad Anonima (Argentina), 7.25%, 03/15/03 - 773 Packaging -- 0.8% 500 Tenneco Packaging, Inc., 8.00%, 04/15/07 - 502 Pipelines -- 0.9% 600 El Paso Energy Corp., 6.75%, 05/15/09 - 558 Retailing -- 2.3% 675 SAKS Inc., 7.25%, 12/01/04 - 613 850 Wal-Mart Stores, Inc., 6.88%, 08/10/09 - 830 ------ 1,443 Telecommunications -- 3.4% 900 Sprint Capital Corp., 6.38%, 05/01/09 - 812 600 U.S. West Capital Funding, Inc., 6.25%, 07/15/05 - 562 800 Vodafone AirTouch PLC (United Kingdom), #, 7.63%, 02/15/05 - 801 ------ 2,175 Utilities -- 2.9% 650 Cilcorp Inc., 8.70%, 10/15/09 - 655 500 Israel Electric Corp. (Israel), MTN, #, 7.75%, 12/15/27 - 440 750 TXU Eastern Funding (United Kingdom), 6.15%, 05/15/02 - 729 ------ 1,824 ------ ------------------------------------------------------------------------ Total Corporate Notes & Bonds 16,831 (Cost $17,171) ------------------------------------------------------------------------ Mortgage Backed Securities -- 33.9% ----------------------------------- Residential Mortgage Backed Pass-Through Securities -- 33.9% Federal National Mortgage Association, 1,357 Pool 253033, 7.00%, 02/01/15 - 1,331 2,911 Pool 253036, 7.00%, 02/01/30 - 2,810 2,444 Pool 490445, 6.00%, 03/01/29 - 2,237 1,236 Pool 494272, 6.50%, 04/01/29 - 1,166 2,968 Pool 503599, 6.50%, 06/01/29 - 2,801 3,346 Pool 523193, 7.50%, 11/01/29 - 3,298 980 Pool 534064, 8.00%, 03/01/30 - 984 2,594 Pool 535054, 6.50%, 11/01/14 - 2,500 Government National Mortgage Association, 1,631 Pool 487224, 6.50%, 05/15/29 - 1,548 1,547 Pool 510285, 7.00%, 08/15/29 - 1,503 1,148 Pool 527141, 8.00%, 03/15/30 - 1,160 ------------------------------------------------------------------------ Total Mortgage Backed Securities 21,338 (Cost $21,511) ------------------------------------------------------------------------
See notes to financial statements. 35 CHASE INCOME FUND Portfolio of Investments (Continued) As of June 30, 2000 (unaudited) (Amounts in Thousands)
Principal Amount (USD) Issuer Value ------------------------------------------------------------------------------------- Long-Term Investments -- Continued ------------------------------------------------------------------------------------- Asset Backed Securities -- 4.0% ------------------------------- MBNA Master Credit Card Trust, $ 900 Ser. 1999-J, Class A, 7.00%, 02/15/12 - $ 884 800 Ser. 1999-M, Class B, 6.80%, 04/16/07 - 783 850 Residential Funding Mortgage Securities II, Ser. 2000-HI1, Class AI4, 7.79%, 01/25/14 - 849 --------------------------------------------------------------------- Total Asset Backed Securities 2,516 (Cost $2,528) ------------------------------------------------------------------------------------- Total Long-Term Investments 56,223 (Cost $56,550) ------------------------------------------------------------------------------------- Short-Term Investment -- 13.6% ------------------------------------------------------------------------------------- U.S. Government Agency Security -- 13.6% ---------------------------------------- 8,585 Federal Home Loan Bank, DN, 6.57%, 07/03/00 - 8,582 (Cost $8,582) ------------------------------------------------------------------------------------- Total Investments -- 102.8% $64,805 (Cost $65,132) -------------------------------------------------------------------------------------
See notes to financial statements. 36 -------------------------------------------------------------------------------- CHASE BALANCED FUND Portfolio of Investments -------------------------------------------------------------------------------- As of June 30, 2000 (unaudited) (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- 98.8% -------------------------------------------------------------------------------- Common Stock -- 60.3% --------------------- Advertising -- 0.3% 4 Omnicom Group $ 374 Airlines -- 0.6% 38 Southwest Airlines, Inc. 725 Automotive -- 0.5% 9 Ford Motor Co. 378 4 General Motors Corp. 209 1 Visteon Corp. * 14 ----- 601 Banking -- 1.0% 9 Bank of America Corp. 378 15 Bank of New York Co., Inc. 693 ----- 1,071 Biotechnology -- 0.7% 11 Amgen, Inc. * 776 Computer Networks -- 2.0% 35 Cisco Systems, Inc. * 2,247 Computer Software -- 3.5% 29 Microsoft Corp. * 2,294 15 Oracle Corp. * 1,261 7 Symantec Corp. * 375 ----- 3,930 Computers/Computer Hardware -- 4.2% 18 Dell Computer Corp. * 901 17 EMC Corp. * 1,336 6 Hewlett-Packard Co. 712 8 International Business Machines Corp. 920 9 Sun Microsystems, Inc. * 818 ----- 4,687 Consumer Products -- 1.7% 13 Avon Products, Inc. 561 15 Colgate-Palmolive Co. 868 9 Gillette Co. 314 12 Philip Morris Companies, Inc. 327 7 Procter & Gamble Co. 388 ----- 2,458 Diversified -- 3.4% 59 General Electric Co. 3,144 15 Tyco International LTD (Bermuda) 692 ----- 3,836 Electronics/Electrical Equipment -- 1.8% 2 Agilent Technologies, Inc. * 160 6 Molex, Inc. 289 8 Sanmina Corp. * 710 21 Solectron Corp. * 892 ----- 2,051 Financial Services -- 5.2% 32 American Express Co. 1,678 26 Charles Schwab Corp. 881 26 Citigroup, Inc. 1,548 8 Merrill Lynch & Co., Inc. 937 12 Morgan Stanley Dean Witter & Co. 962 ----- 6,006
See notes to financial statements. 37 CHASE BALANCED FUND Portfolio of Investments (Continued) As of June 30, 2000 (unaudited) (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- Continued -------------------------------------------------------------------------------- Food/Beverage Products -- 2.1% 8 Anheuser-Busch Companies, Inc. $ 616 13 Coca-Cola Co. 765 23 PepsiCo, Inc. 1,021 ----- 2,402 Health Care/Health Care Services -- 1.3% 12 Guidant Corp. * 603 17 Medtronic, Inc. 829 ----- 1,432 Insurance -- 1.9% 18 American International Group, Inc. 2,087 Internet Services/Software -- 0.9% 12 America Online, Inc. * 633 3 Yahoo! Inc. * 341 ----- 974 Machinery & Engineering Equipment -- 0.3% 7 Dover Corp. 284 Metals/Mining -- 0.5% 18 Alcoa, Inc. 522 Multi-Media -- 1.6% 24 The Walt Disney Co. 943 11 Time Warner, Inc. 832 ----- 1,775 Oil & Gas -- 3.5% 8 BJ Services Co. * 488 6 Chevron Corp. 466 27 Exxon Mobil Corp. 2,104 14 Royal Dutch Petroleum Co., N.Y. Registered Shares (Netherlands) 837 ----- 3,895 Pharmaceuticals -- 4.7% 7 American Home Products Corp. 423 11 Bristol-Myers Squibb Co. 641 6 Eli Lilly & Co. 639 7 Johnson & Johnson 690 12 Merck & Co., Inc. 950 41 Pfizer, Inc. 1,986 ----- 5,329 Retailing -- 5.2% 9 Albertson's, Inc. 303 12 Best Buy Co., Inc. * 787 16 Home Depot, Inc. 820 9 Target Corp. 539 36 Wal-Mart Stores, Inc. 2,053 26 Walgreen Co. 824 ----- 5,326 Semi-Conductors -- 4.9% 11 Altera Corp. * 1,121 11 Applied Materials, Inc. * 1,029 19 Intel Corp. 2,513 13 Texas Instruments, Inc. 879 ----- 5,542
See notes to financial statements. 38 CHASE BALANCED FUND Portfolio of Investments (Continued) As of June 30, 2000 (unaudited) (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- Continued -------------------------------------------------------------------------------- Telecommunications -- 3.5% 9 AT&T Corp. $ 289 14 BellSouth Corp. 584 8 GTE Corp. 524 19 SBC Communications, Inc. 830 12 Sprint Corp. (FON Group) 588 23 WorldCom, Inc. * 1,069 ------ 3,884 Telecommunications Equipment -- 3.3% 17 ADC Telecommunications, Inc. * 1,384 3 JDS Uniphase Corp. * 336 14 Lucent Technologies, Inc. 849 17 Nortel Networks Corp. (Canada) 1,126 ------ 3,695 Utilities -- 1.7% 13 AES Corp. * 584 6 Duke Energy Corp. 316 16 Enron Corp. 1,032 ------ 1,932 ------ Total Common Stock 67,841 (Cost $52,997) -------------------------------------------------------------------
Principal Amount U.S. Treasury Securities -- 6.1% -------------------------------- U.S. Treasury Notes & Bonds, $2,250 6.00%, 08/15/09 2,232 3,925 6.25%, 08/15/23 3,957 625 6.50%, 11/15/26 653 ------------------------------------------------------------------ Total U.S. Treasury Securities 6,842 (Cost $6,760) ------------------------------------------------------------------ U.S. Government Agency Securities -- 2.2% ----------------------------------------- 1,000 Federal Home Loan Bank, 4.88%, 01/22/02 970 Tennessee Valley Authority, 1,100 5.38%, 11/13/08 977 600 6.75%, 11/01/25 580 ------------------------------------------------------------------ Total U.S. Government Agency Securities 2,527 (Cost $2,558) ------------------------------------------------------------------ Corporate Notes & Bonds -- 17.6% -------------------------------- Aerospace -- 1.0% 1,000 United Technologies Corp., 8.75%, 03/01/21 1,107 Automotive -- 1.4% 1,425 DaimlerChrysler North America Holdings Corp., MTN, 6.63%, 09/21/01 1,412 225 Ford Motor Credit Co., 6.25%, 12/08/05 211 ----- 1,623 Banking -- 2.0% 1,950 Bank One Corp., 6.40%, 08/01/02 1,910 400 BankAmerica Corp., 6.20%, 02/15/06 371 ----- 2,281
See notes to financial statements. 39 CHASE BALANCED FUND Portfolio of Investments (Continued) As of June 30, 2000 (unaudited) (Amounts in Thousands)
Principal Amount Issuer Value ------------------------------------------------------------------------------------- Long-Term Investments -- Continued ------------------------------------------------------------------------------------- Biotechnology -- 0.9% $1,100 Monsanto Co., #, 5.88%, 12/01/08 $ 1,000 Computers/Computer Hardware -- 1.3% 1,425 IBM Credit Corp., MTN, 6.35%, 08/30/01 1,411 Consumer Products -- 0.3% 325 Procter & Gamble Co., 6.45%, 01/15/26 283 Financial Services -- 3.7% 20 American General Finance Corp., MTN, 6.04%, 07/02/01 20 1,625 Household Finance Corp., 5.88%, 09/25/04 1,515 1,265 International Lease Finance Corp., MTN, 8.35%, 02/04/02 1,289 1,330 Merrill Lynch & Co., Inc., Ser. B, MTN, 5.71%, 01/15/02 1,298 ------- 4,122 Food/Beverage Products -- 0.4% 500 Anheuser-Busch Companies, Inc., 6.75%, 08/01/03 492 Machinery & Engineering Equipment -- 1.2% 1,425 Caterpillar Financial Services Corp., MTN, 5.89%, 06/17/02 1,386 Oil & Gas -- 1.9% 2,200 BP Amoco PLC (United Kingdom), 6.50%, 08/01/07 2,113 Pharmaceuticals -- 0.5% 600 Abbott Laboratories, 5.60%, 10/01/03 574 Restaurants/Food Services -- 0.4% 450 McDonald's Corp., 7.05%, 11/15/25 420 Retailing -- 1.5% 1,775 Wal-Mart Stores, Inc., 6.55%, 08/10/04 1,742 Utilities -- 1.1% 1,300 Baltimore Gas & Electric Co., Ser. D, MTN, 6.90%, 02/01/05 1,276 ----------------------------------------------------------------------- Total Corporate Notes & Bonds 19,830 (Cost $20,243) ----------------------------------------------------------------------- Mortgage Backed Securities -- 12.6% ----------------------------------- Residential Mortgage Backed Pass-Through Securities -- 12.6% Federal Home Loan Mortgage Corp., 999 Gold Pool C00970, 7.00%, 04/01/30 966 1,721 Gold Pool C35363, 7.00%, 01/01/30 1,663 1,150 Gold Pool E00532, 6.50%, 02/01/13 1,112 3,427 Federal National Mortgage Association, Pool 526926, 6.50%, 12/01/14 3,303 Government National Mortgage Association, 1,367 Pool 423130, 8.50%, 10/15/29 1,399 2,575 Pool 487057, 6.50%, 03/15/29 2,444 1,369 Pool 503849, 6.50%, 04/15/29 1,299 1,092 Pool 505680, 6.50%, 06/15/29 1,036 990 Pool 510100, 7.00%, 07/15/29 962 ----------------------------------------------------------------------- Total Mortgage Backed Securities 14,184 (Cost $14,181) ------------------------------------------------------------------------------------- Total Long-Term Investments 111,224 (Cost $96,739) -------------------------------------------------------------------------------------
See notes to financial statements. 40 CHASE BALANCED FUND Portfolio of Investments (Continued) As of June 30, 2000 (unaudited) (Amounts in Thousands)
Principal Amount Issuer Value ------------------------------------------------------------------------------------- Short-Term Investment -- 1.8% ------------------------------------------------------------------------------------- Repurchase Agreement -- 1.8% ---------------------------- $ 2,003 Greenwich Capital Markets, Inc., in a joint trading account at 6.80%, due 07/03/00, (Dated 06/30/00, Proceeds $2,004, Secured by FHLMC, $2,080, 7.00%, due 11/15/21; Market Value $2,043) $ 2,003 (Cost $2,003) ------------------------------------------------------------------------------------- Total Investments -- 100.6% $113,227 (Cost $98,742) -------------------------------------------------------------------------------------
See notes to financial statements. 41 -------------------------------------------------------------------------------- CHASE EQUITY INCOME FUND Portfolio of Investments -------------------------------------------------------------------------------- As of June 30, 2000 (unaudited) (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- 93.9% -------------------------------------------------------------------------------- Common Stock -- 93.9% Automotive -- 1.5% 30 Ford Motor Co. $1,277 20 General Motors Corp. 1,138 4 Visteon Corp. * 47 ------ 2,462 Banking -- 2.1% 75 Bank of New York Co., Inc. 3,469 Chemicals -- 1.6% 43 Dow Chemical Co. 1,289 32 E.I. DuPont de Nemours Co. 1,383 ------ 2,672 Computer Networks -- 2.0% 53 Cisco Systems, Inc. * 3,388 Computer Software -- 7.1% 33 Computer Associates International, Inc. 1,705 61 Microsoft Corp. * 4,856 63 Oracle Corp. * 5,295 ------ 11,856 Computers/Computer Hardware -- 5.5% 23 Hewlett-Packard Co. 2,810 58 International Business Machines Corp. 6,387 ------ 9,197 Consumer Products -- 2.2% 29 Gillette Co. 1,006 24 Philip Morris Companies, Inc. 643 37 Procter & Gamble Co. 2,095 ------ 3,744 Diversified -- 4.2% 133 General Electric Co. 7,047 Financial Services -- 10.2% 65 American Express Co. 3,404 87 Citigroup, Inc. 5,266 13 J.P. Morgan & Co. 1,454 22 Merrill Lynch & Co., Inc. 2,519 53 Morgan Stanley Dean Witter & Co. 4,379 ------ 17,022 Food/Beverage Products -- 5.4% 27 Anheuser-Busch Companies, Inc. 2,002 32 Coca-Cola Co. 1,827 30 PepsiCo, Inc. 1,333 92 Sysco Corp. 3,858 ------ 9,020 Insurance -- 3.3% 46 American International Group, Inc. 5,462 Machinery & Engineering Equipment -- 1.4% 59 Dover Corp. 2,393 Manufacturing -- 0.4% 21 Honeywell International, Inc. 691 Multi-Media -- 0.7% 29 The Walt Disney Co. 1,141
See notes to financial statements. 42 CHASE EQUITY INCOME FUND Portfolio of Investments (Continued) As of June 30, 2000 (unaudited) (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- Continued -------------------------------------------------------------------------------- Oil & Gas -- 6.0% 28 BP Amoco PLC, ADR (United Kingdom) $ 1,587 26 Chevron Corp. 2,214 39 Exxon Mobil Corp. 3,026 43 Royal Dutch Petroleum Co., N.Y. Registered Shares (Netherlands) 2,639 8 Schlumberger LTD 575 ------- 10,041 Paper/Forest Products -- 0.4% 21 International Paper Co. 629 Pharmaceuticals -- 13.7% 54 Abbott Laboratories 2,397 39 American Home Products Corp. 2,274 48 Bristol-Myers Squibb Co. 2,808 41 Eli Lilly & Co. 4,125 19 Johnson & Johnson 1,915 31 Merck & Co., Inc. 2,406 98 Pfizer, Inc. 4,689 48 Pharmacia Corp. 2,455 ------- 23,069 Retailing -- 3.5% 18 Costco Wholesale Corp. * 587 35 Home Depot, Inc. 1,753 62 Wal-Mart Stores, Inc. 3,590 ------- 5,930 Semi-Conductors -- 7.9% 57 Intel Corp. 7,607 81 Texas Instruments, Inc. 5,536 ------- 13,143 Telecommunications -- 6.6% 44 AT&T Corp. 1,384 28 Bell Atlantic Corp. * 1,428 40 BellSouth Corp. 1,701 23 GTE Corp. 1,450 76 SBC Communications, Inc. 3,292 37 WorldCom, Inc. * 1,716 ------- 10,971 Telecommunications Equipment -- 3.7% 68 Lucent Technologies, Inc. 4,049 72 Motorola, Inc. 2,104 ------- 6,153 Utilities -- 4.5% 51 DQE, Inc. 2,026 32 Duke Energy Corp. 1,827 58 Enron Corp. 3,760 ------- 7,613 -------------------------------------------------------------------------------- Total Long-Term Investments 157,113 (Cost $98,874) --------------------------------------------------------------------------------
See notes to financial statements. 43 CHASE EQUITY INCOME FUND Portfolio of Investments (Continued) As of June 30, 2000 (unaudited) (Amounts in Thousands)
Principal Amount Issuer Value ------------------------------------------------------------------------------------ Short-Term Investment -- 8.4% ------------------------------------------------------------------------------------ Repurchase Agreement -- 8.4% ---------------------------- $14,006 Greenwich Capital Markets, Inc., in a joint trading account at 6.80%, 07/03/00, (Dated 06/30/00, Proceeds $14,014, Secured by FHLMC, $14,329, 6.50% through 8.00%, due 07/25/21 through 04/25/30; Market Value $ 14,286) $ 14,006 (Cost $14,006) ------------------------------------------------------------------------------------ Total Investments -- 102.3% $171,119 (Cost $112,880) ------------------------------------------------------------------------------------
See notes to financial statements. 44 -------------------------------------------------------------------------------- CHASE SMALL CAPITALIZATION FUND Portfolio of Investments -------------------------------------------------------------------------------- As of June 30, 2000 (unaudited) (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- 97.0% -------------------------------------------------------------------------------- Common Stock -- 97.0% --------------------- Advertising -- 2.6% 17 Catalina Marketing Corp. * $1,764 26 True North Communications Inc. 1,162 ------ 2,926 Aerospace -- 0.4% 37 AAR Corp. 442 Apparel -- 1.2% 22 Kenneth Cole Productions, Inc., Class A * 878 7 Timberland Co., Class A * 506 ------ 1,384 Automotive -- 1.7% 59 Copart, Inc. * 948 40 Lithia Motors, Inc., Class A * 528 35 Tower Automotive, Inc. * 438 ------ 1,914 Banking -- 4.4% 18 Amcore Financial, Inc. 330 35 City National Corp. 1,239 21 Commerce Bancorp., Inc. 947 33 Cullen/Frost Bankers, Inc. 876 31 Investors Financial Services Corp. 1,230 20 Trustmark Corp. 345 ------ 4,967 Biotechnology -- 1.1% 12 Inhale Therapeutic Systems, Inc. * 1,238 Broadcasting/Cable -- 1.4% 48 Westwood One, Inc. * 1,623 Business Services -- 6.3% 26 ChoicePoint, Inc. * 1,144 17 CSG Systems International, Inc. * 975 17 F.Y.I., Inc. * 583 42 Iron Mountain, Inc. * 1,437 14 Learning Tree International, Inc. * 867 32 On Assignment, Inc. * 970 70 Profit Recovery Group International * 1,164 ------ 7,140 Chemicals -- 1.3% 56 Spartech Corp. 1,524 Computer Networks -- 1.9% 28 Black Box Corp. * 2,181 Computer Software -- 6.5% 17 Accrue Software, Inc. * 586 23 Advent Software, Inc. * 1,477 20 Allaire Corp. * 748 13 FileNET Corp. * 247 34 National Computer Systems, Inc. 1,693 25 Remedy Corp. * 1,394 18 RSA Security, Inc. * 1,233 ------ 7,378 Computers/Computer Hardware -- 1.4% 38 Cybex Computer Products Corp. * 1,648
See notes to financial statements. 45 CHASE SMALL CAPITALIZATION FUND Portfolio of Investments (Continued) As of June 30, 2000 (unaudited) (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- Continued -------------------------------------------------------------------------------- Construction -- 0.9% 22 Dycom Industries Inc. * $1,007 Construction Materials -- 0.6% 79 Dal-Tile International Inc. * 648 Electronics/Electrical Equipment -- 13.8% 22 Amphenol Corp., Class A * 1,430 47 Artesyn Technologies, Inc. * 1,303 10 Coherent, Inc. * 797 37 CTS Corp. 1,679 25 Littelfuse, Inc. * 1,247 15 National Instruments Corp. * 641 29 PerkinElmer, Inc. 1,937 42 Sanmina Corp. * 3,603 14 Technitrol, Inc. 1,395 47 Vishay Intertechnology, Inc. * 1,773 ------ 15,805 Engineering Services -- 0.4% 14 Jacobs Engineering Group, Inc. * 469 Entertainment/Leisure -- 1.9% 4 Cinar Corp., Class B (Canada) * 12 9 Macrovision Corp. * 588 61 Station Casinos, Inc. * 1,517 ------ 2,117 Financial Services -- 1.0% 14 Federated Investors, Inc., Class B 498 15 SEI Investments Co. 609 ------ 1,107 Food/Beverage Products -- 0.6% 23 Performance Food Group Co. * 723 Health Care/Health Care Services -- 13.0% 59 Community Health Systems, Inc. * 947 37 Cooper Companies, Inc. 1,342 30 Datascope Corp. 1,062 77 Hooper Holmes, Inc. 616 24 MedQuist, Inc. * 826 37 Mentor Corp. 994 44 Molecular Devices Corp. * 3,062 37 Oxford Health Plans, Inc. * 881 15 Patterson Dental Co. * 768 55 Province Healthcare Co. * 1,987 5 Syncor International Corp. * 335 29 Varian Medical Systems, Inc. 1,125 40 Ventana Medical Systems, Inc. * 928 ------ 14,873 Insurance -- 2.7% 19 Arthur J. Gallagher & Co. 802 15 Brown & Brown, Inc. 801 26 Delphi Financial Group, Inc., Class A * 887 11 Radian Group, Inc. 569 ------ 3,059 Machinery & Engineering Equipment -- 3.1% 22 Cognex Corp. * 1,149 23 PRI Automation, Inc. * 1,520 19 Zebra Technologies Corp., Class A * 824 ------ 3,493
See notes to financial statements. 46 CHASE SMALL CAPITALIZATION FUND Portfolio of Investments (Continued) As of June 30, 2000 (unaudited) (Amounts in Thousands)
Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- Continued -------------------------------------------------------------------------------- Oil & Gas -- 5.2% 37 Louis Dreyfus Natural Gas * $ 1,168 61 Pride International, Inc. * 1,498 3 St. Mary Land & Exploration Co. 145 27 Triton Energy LTD (Cayman Islands) 1,075 45 Veritas DGC, Inc. * 1,166 38 Vintage Petroleum, Inc. 849 ------- 5,901 Pharmaceuticals -- 3.3% 30 Advance Paradigm, Inc. * 611 12 IDEC Pharmaceuticals Corp. * 1,349 1 K-V Pharmaceutical Co.* 30 40 King Pharmaceuticals, Inc. * 1,771 ------- 3,761 Real Estate Investment Trust -- 1.2% 39 Alexandria Real Estate Equities 1,331 Restaurants/Food Services -- 1.4% 63 Jack in the Box, Inc. * 1,553 Retailing -- 4.4% 58 BJ's Wholesale Club, Inc. * 1,901 27 Chico's FAS, Inc. * 540 26 Michaels Stores, Inc. * 1,203 62 Stein Mart, Inc. * 640 60 Wild Oats Markets, Inc. * 755 ------- 5,039 Semi-Conductors -- 7.9% 58 Actel Corp. * 2,629 15 Cree, Inc. * 1,989 17 Dallas Semiconductor Corp. 685 20 Semtech Corp. * 1,491 50 Varian, Inc. * 2,292 ------- 9,086 Shipping/Transportation -- 1.2% 26 C.H. Robinson Worldwide, Inc. 1,309 Telecommunications -- 1.9% 34 ITC-DeltaCom, Inc. * 750 58 Price Communications Corp. * 1,355 ------- 2,105 Telecommunications Equipment -- 0.7% 14 Inet Technologies, Inc. * 743 Utilities -- 1.6% 19 AGL Resources, Inc. 295 23 American States Water Co. 679 17 Laclede Gas Co. 321 17 Northwest Natural Gas Co. 373 5 United Water Resources, Inc. 176 ------- 1,844 -------------------------------------------------------------------------------- Total Long-Term Investments 110,338 (Cost $84,215) --------------------------------------------------------------------------------
See notes to financial statements. 47 CHASE SMALL CAPITALIZATION FUND Portfolio of Investments (Continued) As of June 30, 2000 (unaudited) (Amounts in Thousands)
Principal Amount Issuer Value -------------------------------------------------------------------------------------- Short-Term Investment -- 3.0% -------------------------------------------------------------------------------------- Repurchase Agreement -- 3.0% ---------------------------- $3,369 Greenwich Capital Markets, Inc., in a joint trading account at 6.80%, due 07/03/00, (Dated 06/30/00, Proceeds $3,371, Secured by FHLMC, $3,666, 6.00%, due 03/18/28; Market Value $3,437) $ 3,369 (Cost $3,369) -------------------------------------------------------------------------------------- Total Investments -- 100.0% $113,707 (Cost $87,584) --------------------------------------------------------------------------------------
INDEX: * -- Non-income producing security. ~ -- All or a portion of this security is segregated for delayed delivery securities. # -- Security may only be sold to qualified institutional buyers. ADR -- American Depositary Receipt. DN -- Discount Note: The rate shown is the effective yield at the date of purchase. FHLMC -- Federal Home Loan Mortgage Corporation. FRDO -- Floating Rate Demand Obligation: The maturity date shown is the next interest rate reset date; the rate shown is the rate in effect at June 30, 2000. FRN -- Floating Rate Note: The maturity date shown is the actual maturity date; the rate shown is the rate in effect at June 30, 2000. 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 June 30, 2000. See notes to financial statements. 48 -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES As of June 30, 2000 (unaudited) -------------------------------------------------------------------------------- (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) .................... $325,155 $30,642 $48,566 $6,175 Cash .............................. 67 2 4 -- Receivables: Interest/Dividends ............... 2,565 467 537 72 Fund shares sold ................. -- -- 149 -- Expense reimbursement from Distributor ................. 2 2 2 22 -------------------------------------------------------------------------------------------------- Total Assets ................... 327,789 31,113 49,258 6,269 -------------------------------------------------------------------------------------------------- LIABILITIES: Payables: Fund shares redeemed ............. 1 946 174 -- Dividends ........................ 544 5 17 -- Accrued liabilities: (Note 2) Investment advisory fees ......... 66 3 10 -- Administration fees .............. 39 4 6 -- Custody and accounting fees ............................. 9 12 17 4 Other ............................ 124 21 74 19 -------------------------------------------------------------------------------------------------- Total Liabilities .............. 783 991 298 23 -------------------------------------------------------------------------------------------------- NET ASSETS: Paid in capital ................... 327,006 30,821 50,674 6,617 Accumulated undistributed/ (distributions in excess of) net investment income ............. 2 1 (2) (1) Accumulated net realized loss on investments ............... (2) (510) (1,376) (403) Net unrealized appreciation (depreciation) of investments -- (190) (336) 33 -------------------------------------------------------------------------------------------------- Total Net Assets ............... $327,006 $30,122 $48,960 $6,246 ================================================================================================== Shares of beneficial interest outstanding ($.001 par value; unlimited number of shares authorized) Premier Shares .................... 326,749 2,491 3,948 479 Investor Shares ................... 257 10 101 3 Net Asset Value, maximum offering and redemption price per share Premier Shares $ 1.00 $ 12.04 $ 12.09 $12.98 Investor Shares ................... $ 1.00 $ 12.04 $ 12.09 $12.98 Cost of Investments ................ $325,155 $30,832 $48,902 $6,142 ==================================================================================================
See notes to financial statements. 49 STATEMENT OF ASSETS AND LIABILITIES As of June 30, 2000 (unaudited) (Amounts in Thousands, Except Per Share Amounts)
Equity Small Income Balanced Income Capitalization Fund Fund Fund Fund =============================================================================================== ASSETS: Investment securities, at value (Note 1) ........................ $64,805 $113,227 $171,119 $113,707 Cash .................................. 5 5 -- 1 Receivables: Investment securities sold ........... -- -- -- 106 Interest and Dividends ............... 700 673 119 42 Fund shares sold ..................... 129 6 22 341 Expense reimbursement from Distributor ..................... 1 1 1 1 ---------------------------------------------------------------------------------------------- Total Assets ....................... 65,640 113,912 171,261 114,198 ---------------------------------------------------------------------------------------------- LIABILITIES: Payables: Investment securities purchased ............................ 2,001 1,109 -- -- Fund shares redeemed ................. 499 59 3,669 293 Dividends ............................ 23 -- 10 -- Accrued liabilities: (Note 2) Investment advisory fees ............. 16 65 102 62 Administration fees .................. 8 14 21 14 Custody and accounting fees .......... 7 19 20 15 Other ................................ 50 105 116 121 ---------------------------------------------------------------------------------------------- Total Liabilities .................. 2,604 1,371 3,938 505 ---------------------------------------------------------------------------------------------- NET ASSETS: Paid in capital ....................... 66,852 87,950 103,610 86,550 Accumulated undistributed/ (distributions in excess of) net investment income ................. 25 1 -- (90) Accumulated net realized gain (loss) on investments ................. (3,514) 10,105 5,474 1,110 Net unrealized appreciation (depreciation) of investments ......... (327) 14,485 58,239 26,123 ---------------------------------------------------------------------------------------------- Total Net Assets ................... $63,036 $112,541 $167,323 $113,693 ============================================================================================== Shares of beneficial interest outstanding ($.001 par value; unlimited number of shares authorized) Premier Shares ........................ 3,324 2,833 3,210 4,350 Investor Shares ....................... 56 49 112 149 Net Asset Value, maximum offering and redemption price per share Premier Shares ........................ $ 18.65 $ 39.06 $ 50.38 $ 25.28 Investor Shares ....................... $ 18.67 $ 39.02 $ 50.41 $ 25.14 Cost of Investments .................... $65,132 $ 98,742 $112,880 $ 87,584
See notes to financial statements. 50 STATEMENT OF ASSETS AND LIABILITIES As of June 30, 2000 (unaudited) (Amounts in Thousands, Except Per Share Amounts)
Equity Core Equity Growth Fund Fund ==================================================================================== ASSETS: Investment in Portfolio, at value (Note 1) ....................................... $201,617 $396,825 Receivables: Fund shares sold .................................... 71 118 ------------------------------------------------------------------------------------ Total Assets ...................................... 201,688 396,943 ------------------------------------------------------------------------------------ LIABILITIES: Accrued liabilities: (Note 2) Administration fees ................................. 16 32 Other ............................................... 100 125 ------------------------------------------------------------------------------------ Total Liabilities ................................. 116 157 ------------------------------------------------------------------------------------ NET ASSETS: Paid in capital ...................................... 138,271 249,260 Accumulated distributions in excess of net investment income ................................ (59) (722) Accumulated net realized gain on investments ......... 5,681 5,521 Net unrealized appreciation of investments ....................................... 57,679 142,727 ------------------------------------------------------------------------------------ Total Net Assets .................................. $201,572 $396,786 ==================================================================================== Shares of beneficial interest outstanding ($.001 par value; unlimited number of shares authorized) Premier Shares ....................................... 5,922 5,259 Investor Shares ...................................... 273 461 Net Asset Value, maximum offering and redemption price per share Premier Shares ....................................... $ 32.54 $ 69.39 Investor Shares ...................................... $ 32.45 $ 69.05 ====================================================================================
See notes to financial statements. 51 -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS For the six months ended June 30, 2000 (unaudited) -------------------------------------------------------------------------------- (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 ..................... $9,338 $976 $1,432 $223 ------------------------------------------------------------------------------------------------ EXPENSES: (Note 2) Investment advisory fees ........... 449 76 106 15 Administration fees ................ 224 23 32 5 Distribution fees .................. -- -- 1 -- Custody and accounting fees ............................... 38 24 24 27 Printing and postage ............... 29 12 11 1 Professional fees .................. 22 18 19 16 Registration expenses .............. 28 4 9 4 Transfer agent fees ................ 40 20 24 16 Trustees' fees ..................... 7 1 1 -- Other .............................. 7 6 1 2 ------------------------------------------------------------------------------------------------ Total expenses .................. 844 184 228 86 ------------------------------------------------------------------------------------------------ Less amounts waived (Note 2D) .......................... 85 61 57 20 Less earnings credits (Note 2E) .......................... 1 -- 1 -- Less expense reimbursements (Note 2E) ........... 10 9 10 41 ------------------------------------------------------------------------------------------------ Net expenses ..................... 748 114 160 25 ------------------------------------------------------------------------------------------------ Net investment income .......................... 8,590 862 1,272 198 ------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized loss on investment transactions ............ -- (326) (506) (70) Change in net unrealized appreciation/depreciation of investments ..................... -- 307 626 129 ------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments ......... -- (19) 120 59 ------------------------------------------------------------------------------------------------ Net increase in net assets from operations .................... $8,590 $843 $1,392 $257 ================================================================================================
See notes to financial statements. 52 STATEMENT OF OPERATIONS For the six months ended June 30, 2000 (unaudited) (Amounts in Thousands)
Equity Small Income Balanced Income Capitalization Fund Fund Fund Fund ================================================================================================ INVESTMENT INCOME: Interest ................................ $2,224 $1,522 $ 359 $ 213 Dividend ................................ -- 219 965 216 ------------------------------------------------------------------------------------------------ Total investment income .............. 2,224 1,741 1,324 429 ------------------------------------------------------------------------------------------------ EXPENSES: (Note 2) Investment advisory fees ................ 160 407 638 388 Administration fees ..................... 48 81 128 78 Distribution fees ....................... 1 2 6 3 Custody and accounting fees ............. 33 37 34 36 Printing and postage .................... 17 14 31 18 Professional fees ....................... 18 17 19 19 Registration expenses ................... 9 19 14 19 Transfer agent fees ..................... 27 35 45 36 Trustees' fees .......................... 1 2 4 2 Other ................................... 1 -- 8 2 ------------------------------------------------------------------------------------------------ Total expenses ....................... 315 614 927 601 ------------------------------------------------------------------------------------------------ Less amounts waived (Note 2D) ........... 65 52 47 68 Less earnings credits (Note 2E) ......... -- 3 -- -- Less expense reimbursements (Note 2E) ............................... 10 14 22 14 ------------------------------------------------------------------------------------------------ Net expenses ........................... 240 545 858 519 ------------------------------------------------------------------------------------------------ Net investment income (loss) ............................... 1,984 1,196 466 (90) ------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investment transactions ................. (885) 10,547 5,980 9,767 Change in net unrealized appreciation/depreciation of investments .......................... 638 (8,767) (4,235) 2,186 ------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments ................... (247) 1,780 1,745 11,953 ------------------------------------------------------------------------------------------------ Net increase in net assets from operations .................. $1,737 $2,976 $2,211 $11,863 ================================================================================================
See notes to financial statements. 53 STATEMENT OF OPERATIONS For the six months ended June 30, 2000 (unaudited) (Amounts in Thousands)
Equity Core Equity Growth Fund Fund ================================================================================== INVESTMENT INCOME: Investment income from Portfolio ................. $ 903 $ 1,133 Expenses from Portfolio .......................... (772) (1,498) ---------------------------------------------------------------------------------- Total investment income (loss) ................ 131 (365) ---------------------------------------------------------------------------------- EXPENSES: (Note 2) Administration fees .............................. 95 183 Distribution fees ................................ 9 29 Custody and accounting fees ...................... 14 20 Printing and postage ............................. 24 43 Professional fees ................................ 10 13 Registration expenses ............................ 14 21 Transfer agent fees .............................. 52 99 Trustees' fees ................................... 2 4 Other ............................................ 1 7 ---------------------------------------------------------------------------------- Total expenses ................................ 221 419 ---------------------------------------------------------------------------------- Less amounts waived (Note 2D) .................... 9 29 Less expense reimbursements (Note 2E) ............ 22 33 ---------------------------------------------------------------------------------- Net expenses .................................... 190 357 ---------------------------------------------------------------------------------- Net investment loss ........................... (59) (722) ---------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions .......................... 3,454 6,398 Change in net unrealized appreciation/depreciation of investments ......... (711) 1,539 ---------------------------------------------------------------------------------- Net realized and unrealized gain on investments ................................... 2,743 7,937 ---------------------------------------------------------------------------------- Net increase in net assets from operations ....................................... $2,684 $ 7,215 ==================================================================================
See notes to financial statements. 54 -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS For the periods indicated (unaudited) -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS For the periods indicated (Amounts in Thousands)
Short-Intermediate Term U.S. Government Intermediate Money Market Fund Securities Fund Term Bond Fund ----------------------- --------------------- --------------------- 01/01/00 Year 01/01/00 Year 01/01/00 Year Through Ended Through Ended Through Ended 06/30/00 12/31/99 06/30/00 12/31/99 06/30/00 12/31/99 ================================================================================================================================== INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income ................................ $ 8,590 $ 11,119 $ 862 $ 1,538 $ 1,272 $ 1,963 Net realized loss on investment transactions ......................................... -- (1) (326) (174) (506) (865) Change in net unrealized appreciation/ depreciation of investments .......................... -- -- 307 (1,131) 626 (1,474) ---------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from operations ......................................... 8,590 11,118 843 233 1,392 (376) ---------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income ................................ (8,591) (11,116) (863) (1,538) (1,277) (1,963) Net realized gain on investment transactions ......... -- -- -- (115) -- (30) ---------------------------------------------------------------------------------------------------------------------------------- Total distributions to shareholders ................ (8,591) (11,116) (863) (1,653) (1,277) (1,993) ---------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from capital share transactions (Note 6) ................................. 30,727 100,785 (1,686) 2,684 8,950 9,384 ---------------------------------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets ............ 30,726 100,787 (1,706) 1,264 9,065 7,015 NET ASSETS: Beginning of period .................................. 296,280 195,493 31,828 30,564 39,895 32,880 ---------------------------------------------------------------------------------------------------------------------------------- End of period ........................................ $327,006 $296,280 $30,122 $31,828 $48,960 $39,895 ==================================================================================================================================
See notes to financial statements. 55 -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS For the periods indicated (unaudited) -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS For the periods indicated (Amounts in Thousands)
U.S. Government Securities Fund Income Fund ---------------------- --------------------- 01/01/00 Year 01/01/00 Year Through Ended Through Ended 06/30/00 12/31/99 06/30/00 12/31/99 ================================================================================================== INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income ........................... $ 198 $ 319 $ 1,984 $ 3,468 Net realized gain (loss) on investment transactions .................................... (70) (333) (885) (2,604) Change in net unrealized appreciation/ depreciation of investments ..................... 129 (128) 638 (2,648) ------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from operations .................................... 257 (142) 1,737 (1,784) ------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income ........................... (199) (319) (1,981) (3,468) Net realized gain on investment transactions..... -- -- -- (584) ------------------------------------------------------------------------------------------------- Total distributions to shareholders ........... (199) (319) (1,981) (4,052) ------------------------------------------------------------------------------------------------- Increase (decrease) from capital share transactions (Note 6) ...................... (1,551) 4,566 (2,773) 11,811 ------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets ....... (1,493) 4,105 (3,017) 5,975 NET ASSETS: Beginning of period ............................. 7,739 3,634 66,053 60,078 ------------------------------------------------------------------------------------------------- End of period ................................... $ 6,246 $7,739 $63,036 $66,053 ================================================================================================== Equity Balanced Fund Income Fund ------------------------- ------------------------- 01/01/00 Year 01/01/00 Year Through Ended Through Ended 06/30/00 12/31/99 06/30/00 12/31/99 ======================================================================================================== INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income ........................... $ 1,196 $ 1,856 $ 466 $ 988 Net realized gain (loss) on investment transactions .................................... 10,547 (61) 5,980 6,287 Change in net unrealized appreciation/ depreciation of investments ..................... (8,767) 10,256 (4,235) 10,874 -------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from operations .................................... 2,976 12,051 2,211 18,149 -------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income ........................... (1,344) (1,710) (466) (978) Net realized gain on investment transactions..... -- (521) -- (6,799) -------------------------------------------------------------------------------------------------------- Total distributions to shareholders ........... (1,344) (2,231) (466) (7,777) -------------------------------------------------------------------------------------------------------- Increase (decrease) from capital share transactions (Note 6) ...................... 5,963 36,093 (8,225) 35,513 -------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets ....... 7,595 45,913 (6,480) 45,885 NET ASSETS: Beginning of period ............................. 104,946 59,033 173,803 127,918 -------------------------------------------------------------------------------------------------------- End of period ................................... $112,541 $104,946 $167,323 $173,803 ========================================================================================================
See notes to financial statements. 56 STATEMENT OF CHANGES IN NET ASSETS For the periods indicated (unaudited) STATEMENT OF CHANGES IN NET ASSETS For the periods indicated (Amounts in Thousands)
Small Core Capitalization Fund Equity Fund ----------------------- ------------------------- 01/01/00 Year 01/01/00 Year Through Ended Through Ended 06/30/00 12/31/99 06/30/00 12/31/99 =============================================================================================================== INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss) ............................. $ (90) $ (95) $ (59) $ 192 Net realized gain (loss) on investment transactions ............................................. 9,767 (6,607) 3,454 5,082 Change in net unrealized appreciation/ depreciation of investments .............................. 2,186 17,986 (711) 26,635 --------------------------------------------------------------------------------------------------------------- Increase in net assets from operations ............................................... 11,863 11,284 2,684 31,909 --------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1) Net investment income .................................... -- -- -- (192) Net realized gain on investment transactions ............. -- -- -- (3,154) --------------------------------------------------------------------------------------------------------------- Total distributions to shareholders .................... -- -- -- (3,346) --------------------------------------------------------------------------------------------------------------- Increase from capital share transactions (Note 6) ......... 8,085 17,669 11,999 69,766 --------------------------------------------------------------------------------------------------------------- Total increase in net assets ........................... 19,948 28,953 14,683 98,329 NET ASSETS: Beginning of period ...................................... 93,745 64,792 186,889 88,560 --------------------------------------------------------------------------------------------------------------- End of period ............................................ $113,693 $93,745 $201,572 $186,889 =============================================================================================================== Equity Growth Fund ------------------------ 01/01/00 Year Through Ended 06/30/00 12/31/99 ======================================================================================== INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss) ............................. $ (722) $ (592) Net realized gain (loss) on investment transactions ............................................. 6,398 4,029 Change in net unrealized appreciation/ depreciation of investments .............................. 1,539 69,875 --------------------------------------------------------------------------------------- Increase in net assets from operations ............................................... 7,215 73,312 --------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1) Net investment income .................................... -- -- Net realized gain on investment transactions ............. -- (4,405) --------------------------------------------------------------------------------------- Total distributions to shareholders .................... -- (4,405) --------------------------------------------------------------------------------------- Increase from capital share transactions (Note 6) ......... 54,828 85,511 --------------------------------------------------------------------------------------- Total increase in net assets ........................... 62,043 154,418 NET ASSETS: Beginning of period ...................................... 334,743 180,325 --------------------------------------------------------------------------------------- End of period ............................................ $396,786 $334,743 ========================================================================================
See notes to financial statements. 57 -------------------------------------------------------------------------------- CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) -------------------------------------------------------------------------------- 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. 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 June 30, 2000, CEF and EGF owned 76.76% and 86.52% 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. 58 CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (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. 59 CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) 3. 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. 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. 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. 60 CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) 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 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, CFD Fund Distributors, Inc. ("CFD" or the "Distributor"), a wholly-owned subsidiary of The BISYS Group, Inc. ("BISYS"), 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. 61 CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) The Distributor voluntarily waived 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. The Administrator receives from CEF and EGF a fee computed at an annual rate equal to 0.05% of average daily net assets. The Administrator voluntarily waived fees as outlined in Note 2.D. D. Waiver of fees -- For the six months ended June 30, 2000, the Funds' vendors voluntarily waived fees for each of the Funds as follows (in thousands):
Investment Fund Advisory Administration Distribution Total =============================================================================== MMF ........... $85 $-- $-- $85 STGSF ......... 61 -- -- 61 ITBF .......... 56 -- 1 57 GSF ........... 15 5 -- 20 IF ............ 64 -- 1 65 BF ............ 50 -- 2 52 EIF ........... 41 -- 6 47 SCF ........... 65 -- 3 68 CEF ........... -- -- 9 9 EGF ........... -- -- 29 29
E. Other -- Certain officers of the Trust are officers of CFD or of its parent corporation, BISYS. 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. Custodian fees are subject to reduction by credits earned by each Fund, based on cash balances held by Chase as custodian. Such earnings credits are presented separately in the Statement of Operations. The Funds could have invested the cash balances utilized in connection with the earnings credit arrangements in income producing assets if they had not entered into such arrangements. The Distributor voluntarily reimbursed expenses of the Funds in the amounts as shown on the Statement of Operations. 3. Investment Transactions For the six months ended June 30, 2000, purchases and sales of investments (excluding short-term investments) were as follows (in thousands): 62 CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
Purchases Sales Purchases Sales (excluding U.S. (excluding U.S. of U.S. of U.S. Government) Government) Government Government ================================================================================ STGSF ......... $ -- $ -- $ 16,531 $19,386 ITBF .......... 17,900 13,584 12,762 8,389 GSF ........... -- -- 2,939 4,428 IF ............ 22,286 21,145 29,837 31,585 BF ............ 46,317 37,144 38,299 40,583 EIF ........... 10,233 15,383 -- -- SCF ........... 40,713 31,085 -- --
4. Federal Income Tax Matters For Federal income tax purposes, the cost and unrealized appreciation (depreciation) in value of the investment securities at June 30, 2000, are as follows (in thousands):
Gross Gross Net unrealized Aggregate unrealized unrealized appreciation/ cost appreciation depreciation (depreciation) =============================================================================== STGSF ......... $ 30,832 $ 106 $ (296) $ (190) ITBF .......... 48,902 188 (524) (336) GSF ........... 6,142 80 (47) 33 IF ............ 65,132 283 (610) (327) BF ............ 98,742 17,886 (3,401) 14,485 EIF ........... 112,880 63,465 (5,226) 58,239 SCF ........... 87,584 30,614 (4,491) 26,123
5. Concentrations At June 30, 2000, EIF and SCF invested 25.6% and 32.6%, respectively, of their portfolios in securities issued by technology sector companies, such as computer hardware and software companies, internet connectivity providers, and telecommunications equipment manufacturers. Valuations of companies in the technology sector are typically subject to greater volatility than other sectors. 63 CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) 6. Capital Share Transactions Capital share transactions were as follows for the periods presented (amounts in thousands): MONEY MARKET FUND
========================================================================================================= Premier Shares Investor Shares ========================================================================================================= Six Months Ended June 30, 2000 Amount Shares Amount Shares --------------------------------------------------------------------------------------------------------- Shares sold $ 191,666 191,666 $ 255 255 Shares issued in reinvestment of distributions 6,031 6,031 6 6 Shares redeemed (167,068) (167,068) (163) (163) --------------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 30,629 30,629 $ 98 98 ========================================================================================================= Year Ended December 31, 1999 --------------------------------------------------------------------------------------------------------- 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 =========================================================================================================
SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND
========================================================================================================= Premier Shares Investor Shares ========================================================================================================= Six Months Ended June 30, 2000 Amount Shares Amount Shares --------------------------------------------------------------------------------------------------------- Shares sold $ 4,876 407 $ 63 5 Shares issued in reinvestment of distributions 836 70 2 -- Shares redeemed (7,454) (622) (9) (1) --------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ (1,742) (145) $ 56 4 ========================================================================================================= Year Ended December 31, 1999 --------------------------------------------------------------------------------------------------------- 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 =========================================================================================================
64 CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) INTERMEDIATE TERM BOND FUND
========================================================================================================= Premier Shares Investor Shares ========================================================================================================= Six Months Ended June 30, 2000 Amount Shares Amount Shares --------------------------------------------------------------------------------------------------------- Shares sold $ 14,248 1,182 $ 798 66 Shares issued in reinvestment of distributions 1,183 98 17 2 Shares redeemed (7,240) (602) (56) (5) --------------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 8,191 678 $ 759 63 ========================================================================================================= Year Ended December 31, 1999 --------------------------------------------------------------------------------------------------------- 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 =========================================================================================================
U.S. GOVERNMENT SECURITIES FUND
========================================================================================================= Premier Shares Investor Shares ========================================================================================================= Six Months Ended June 30, 2000 Amount Shares Amount Shares --------------------------------------------------------------------------------------------------------- Shares sold $ 841 65 $ 15 1 Shares issued in reinvestment of distributions 194 15 2 -- Shares redeemed (2,564) (200) (39) (3) --------------------------------------------------------------------------------------------------------- Net decrease in Fund shares outstanding $ (1,529) (120) $(22) (2) ========================================================================================================= Year Ended December 31, 1999 --------------------------------------------------------------------------------------------------------- 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 =========================================================================================================
65 CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) INCOME FUND
========================================================================================================= Premier Shares Investor Shares ========================================================================================================= Six Months Ended June 30, 2000 Amount Shares Amount Shares --------------------------------------------------------------------------------------------------------- Shares sold $ 8,108 435 $ 616 33 Shares issued in reinvestment of distributions 1,843 99 10 -- Shares redeemed (13,274) (713) (76) (4) --------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ (3,323) (179) $ 550 29 ========================================================================================================= Year Ended December 31, 1999 --------------------------------------------------------------------------------------------------------- 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 =========================================================================================================
BALANCED FUND
========================================================================================================= Premier Shares Investor Shares ========================================================================================================= Six Months Ended June 30, 2000 Amount Shares Amount Shares --------------------------------------------------------------------------------------------------------- Shares sold $ 27,627 717 $ 790 21 Shares issued in reinvestment of distributions 1,324 33 19 -- Shares redeemed (23,126) (598) (671) (17) --------------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 5,825 152 $ 138 4 ========================================================================================================= Year Ended December 31, 1999 --------------------------------------------------------------------------------------------------------- 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 =========================================================================================================
66 CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) EQUITY INCOME FUND
========================================================================================================= Premier Shares Investor Shares ========================================================================================================= Six Months Ended June 30, 2000 Amount Shares Amount Shares --------------------------------------------------------------------------------------------------------- Shares sold $ 23,476 473 $ 3,363 68 Shares issued in reinvestment of distributions 443 9 8 -- Shares redeemed (33,951) (687) (1,564) (31) --------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $(10,032) (205) $ 1,807 37 ========================================================================================================= Year Ended December 31, 1999 --------------------------------------------------------------------------------------------------------- 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 =========================================================================================================
SMALL CAPITALIZATION FUND
========================================================================================================= Premier Shares Investor Shares ========================================================================================================= Six Months Ended June 30, 2000 Amount Shares Amount Shares --------------------------------------------------------------------------------------------------------- Shares sold $ 19,433 827 $2,882 119 Shares issued in reinvestment of distributions -- -- -- -- Shares redeemed (13,996) (586) (234) (10) --------------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 5,437 241 $2,648 109 ========================================================================================================= Year Ended December 31, 1999 --------------------------------------------------------------------------------------------------------- Shares sold $ 34,842 1,764 $ 776 41 Shares issued in reinvestment of distributions -- -- -- -- Shares redeemed (17,865) (898) (84) (4) --------------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 16,977 866 $ 692 37 =========================================================================================================
67 CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) CORE EQUITY FUND
========================================================================================================= Premier Shares Investor Shares ========================================================================================================= Six Months Ended June 30, 2000 Amount Shares Amount Shares --------------------------------------------------------------------------------------------------------- Shares sold $ 40,955 1,285 $ 4,401 139 Shares issued in reinvestment of distributions -- -- -- -- Shares redeemed (31,575) (970) (1,782) (57) --------------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 9,380 315 $ 2,619 82 ========================================================================================================= Year Ended December 31, 1999 --------------------------------------------------------------------------------------------------------- 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 =========================================================================================================
EQUITY GROWTH FUND
========================================================================================================= Premier Shares Investor Shares ========================================================================================================= Six Months Ended June 30, 2000 Amount Shares Amount Shares --------------------------------------------------------------------------------------------------------- Shares sold $ 88,251 1,287 $19,675 282 Shares issued in reinvestment of distributions -- -- -- -- Shares redeemed (50,268) (724) (2,830) (42) --------------------------------------------------------------------------------------------------------- Net increase in Fund shares outstanding $ 37,983 563 $16,845 240 ========================================================================================================= Year Ended December 31, 1999 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 =========================================================================================================
68 -------------------------------------------------------------------------------- CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited) -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (unaudited)
Chase Money Market Fund ----------------------------------------------------------------- Premier Shares ----------------------------------------------------------------- 1/1/00 For the Years Ended December 31, Through ----------------------------------------------------- 6/30/00 1999 1998 1997 1996 1995 ---------- -------- ------- ------- ------- ------- Per share operating performance: Net asset value, beginning of period .......... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 ----- ----- ----- ----- ----- ------ Income from investment operations: Net investment income ........................ 0.03 0.05 0.05 0.05 0.05 0.05 Net gains or losses in investments (both realized and unrealized) .................... -- -- -- -- -- -- ----- ----- ----- ---- ----- ----- Total from investment operations ............ 0.03 0.05 0.05 0.05 0.05 0.05 ----- ----- ----- ---- ----- ----- Less distributions: Dividends from net investment income ......... 0.03 0.05 0.05 0.05 0.05 0.05 Distributions from capital gains ............. -- -- -- -- -- -- ----- ----- ----- ---- ----- ----- Total distributions ......................... 0.03 0.05 0.05 0.05 0.05 0.05 ----- ----- ----- ---- ----- ----- Net asset value, end of period ................ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 ===== ===== ===== ===== ===== ===== Total return .................................. 2.89% 4.89% 5.20% 5.18% 5.06% 5.57% Ratios/supplemental data: Net assets, end of period (millions) ......... $ 327 $ 296 $ 195 $ 135 $ 119 $ 71 Ratios to average net assets:# Expenses ..................................... 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Net investment income ........................ 5.74% 4.81% 5.07% 5.09% 4.93% 5.43% Expenses without waivers, reimbursements and earnings credits ........................ 0.56% 0.58% 0.60% 0.74% 0.72% 0.72% Net investment income without waivers, reimbursements and earnings credits ......... 5.68% 4.73% 4.97% 4.85% 4.71% 5.21% =================================================================================================================
Chase Money Market Fund ------------------------------------- Investor Shares ------------------------------------- 1/1/00 Year 11/10/98* Through Ended Through 6/30/00 12/31/99 12/31/98 --------- -------- ---------- Per share operating performance: Net asset value, beginning of period .......... $1.00 $ 1.00 $1.00 ----- ------ ----- Income from investment operations: Net investment income ........................ 0.03 0.05 0.01 Net gains or losses in investments (both realized and unrealized) .................... -- -- -- ----- ------ ----- Total from investment operations ............ 0.03 0.05 0.01 ----- ------ ----- Less distributions: Dividends from net investment income ......... 0.03 0.05 0.01 Distributions from capital gains ............. -- -- -- ----- ------ ----- Total distributions ......................... 0.03 0.05 0.01 ----- ------ ----- Net asset value, end of period ................ $1.00 $ 1.00 $1.00 ===== ====== ===== Total return .................................. 2.84% 4.78% 0.69% Ratios/supplemental data: Net assets, end of period (millions) ......... $ + $ + $ + Ratios to average net assets:# Expenses ..................................... 0.60% 0.60% 0.60% Net investment income ........................ 5.66% 4.71% 4.72% Expenses without waivers, reimbursements and earnings credits ........................ 9.30% 25.25% 0.80% Net investment income without waivers, reimbursements and earnings credits ......... (3.04%) (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. 69 -------------------------------------------------------------------------------- CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited) -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (unaudited)
Chase Short-Intermediate Term U.S. Government Securities Fund ----------------------------------------------------------------------- Premier Shares ----------------------------------------------------------------------- 1/1/00 For the Years Ended December 31, Through ---------------------------------------------------------- 6/30/00 1999 1998 1997 1996 1995 --------- -------- -------- -------- ------- ------- Per share operating performance: Net asset value, beginning of period .......... $12.05 $12.60 $12.39 $11.66 $11.35 $10.14 ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income ........................ 0.34 0.60 0.63 0.67 0.60 0.58 Net gains or losses in investments (both realized and unrealized) .................... (0.01) (0.51) 0.25 0.06 (0.29) 0.63 ------ ------ ------ ------ ------ ------ Total from investment operations ............ 0.33 0.09 0.88 0.73 0.31 1.21 ------ ------ ------ ----- ------ ------ Less distributions: Dividends from net investment income ......... 0.34 0.60 0.63 -- -- -- Distributions from capital gains ............. -- 0.04 0.04 -- -- -- ------ ------ ------ ------ ------ ------ Total distributions ......................... 0.34 0.64 0.67 -- -- -- ------ ------ ------ ------ ----- ------ Net asset value, end of period ................ $12.04 $12.05 $12.60 $12.39 $11.66 $11.35 ====== ====== ====== ====== ====== ====== Total return .................................. 2.78% 0.72% 7.35% 6.30% 2.68% 12.01% Ratios/supplemental data: Net assets, end of period (millions) ......... $ 30 $ 31 $ 31 $ 24 $ 29 $ 29 Ratios to average net assets:# Expenses ..................................... 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% Net investment income ........................ 5.68% 4.82% 5.06% 5.40% 5.26% 5.38% Expenses without waivers, reimbursements and earnings credits ........................ 1.15% 1.12% 1.12% 1.01% 0.88% 0.91% Net investment income without waivers, reimbursements and earnings credits ......... 5.28% 4.45% 4.69% 5.14% 5.13% 5.22% Portfolio turnover rate ....................... 59% 91% 87% 63% 177% 187% =======================================================================================================================
Chase Short-Intermediate Term U.S. Government Securities Fund ---------------------------------- Investor Shares ---------------------------------- 1/1/00 Year 11/10/98* Through Ended Through 6/30/00 12/31/99 12/31/98 --------- -------- --------- Per share operating performance: Net asset value, beginning of period .......... $12.04 $12.59 $12.64 ------ ------ ------ Income from investment operations: Net investment income ........................ 0.32 0.57 0.08 Net gains or losses in investments (both realized and unrealized) .................... -- (0.51) -- ------ ------ ------ Total from investment operations ............ 0.32 0.06 0.08 ------ ------ ------ Less distributions: Dividends from net investment income ......... 0.32 0.57 0.09 Distributions from capital gains ............. -- 0.04 0.04 ------ ------ ------ Total distributions ......................... 0.32 0.61 0.13 ------- ------- ------ Net asset value, end of period ................ $12.04 $12.04 $12.59 ====== ====== ====== Total return .................................. 2.74% 0.48% 0.60% Ratios/supplemental data: Net assets, end of period (millions) ......... $ + $ + $ + Ratios to average net assets:# Expenses ..................................... 1.00% 0.99% 1.03% Net investment income ........................ 5.43% 4.58% 4.47% Expenses without waivers, reimbursements and earnings credits ........................ 17.71% 57.39% 1.58% Net investment income without waivers, reimbursements and earnings credits ......... (11.28%) (51.82%) 3.92% Portfolio turnover rate ....................... 59% 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. 70 -------------------------------------------------------------------------------- CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited) -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (unaudited)
Chase Intermediate Term Bond Fund ---------------------------------------------------------------------- Premier Shares ---------------------------------------------------------------------- 1/1/00 For the Years Ended December 31, Through -------------------------------------------------------- 6/30/00 1999 1998 1997 1996 1995 --------- -------- -------- -------- -------- -------- Per share operating performance: Net asset value, beginning of period .......... $12.06 $12.87 $12.75 $11.89 $11.67 $ 9.99 ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income ........................ 0.36 0.66 0.68 0.56 0.61 0.64 Net gains or losses in investments (both realized and unrealized) .................... 0.03 (0.80) 0.27 0.30 (0.39) 1.04 ------ ------ ------ ------ ------ ------ Total from investment operations ............ 0.39 (0.14) 0.95 0.86 0.22 1.68 ------ ------ ------ ------ ------ ----- Less distributions: Dividends from net investment income ......... 0.36 0.66 0.68 -- -- -- Distributions from capital gains ............. -- 0.01 0.15 -- -- -- ------ ------ ------ ------ ------ ------ Total distributions ......................... 0.36 0.67 0.83 -- -- -- ------ ------ ------- ------ ------ ------ Net asset value, end of period ................ $12.09 $12.06 $12.87 $12.75 $11.89 $11.67 ====== ====== ====== ====== ====== ====== Total return .................................. 3.26% (1.11%) 7.63% 7.26% 1.86% 16.79% Ratios/supplemental data: Net assets, end of period (millions) ......... $ 48 $ 39 $ 33 $ 19 $ 7 $ 5 Ratios to average net assets:# Expenses ..................................... 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% Net investment income ........................ 5.97% 5.33% 5.25% 5.61% 5.32% 5.89% Expenses without waivers, reimbursements and earnings credits ........................ 1.02% 1.18% 1.27% 1.25% 1.42% 1.43% Net investment income without waivers, reimbursements and earnings credits ......... 5.70% 4.90% 4.73% 5.11% 4.65% 5.21% Portfolio turnover rate ....................... 60% 85% 135% 14% 134% 198% ======================================================================================================================
Chase Intermediate Term Bond Fund ------------------------------------ Investor Shares ------------------------------------ 1/1/00 Year 11/10/98* Through Ended Through 6/30/00 12/31/99 12/31/98 ---------- --------- --------- Per share operating performance: Net asset value, beginning of period .......... $12.06 $12.87 $12.91 ------ ------ ------ Income from investment operations: Net investment income ........................ 0.34 0.63 0.09 Net gains or losses in investments (both realized and unrealized) .................... 0.03 (0.80) 0.11 ------- ------ ------ Total from investment operations ............ 0.37 (0.17) 0.20 ------ ------ ------ Less distributions: Dividends from net investment income ......... 0.34 0.63 0.09 Distributions from capital gains ............. -- 0.01 0.15 ------ ------ ------ Total distributions ......................... 0.34 0.64 0.24 ------ ------ ------ Net asset value, end of period ................ $12.09 $12.06 $12.87 ====== ====== ====== Total return .................................. 3.13% (1.36%) 1.52% Ratios/supplemental data: Net assets, end of period (millions) ......... $ 1 $ + $ + Ratios to average net assets:# Expenses ..................................... 1.00% 0.99% 1.03% Net investment income ........................ 5.74% 5.09% 4.64% Expenses without waivers, reimbursements and earnings credits ........................ 4.80% 9.79% 1.72% Net investment income without waivers, reimbursements and earnings credits ......... 1.94% (3.71%) 3.95% Portfolio turnover rate ....................... 60% 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. 71 -------------------------------------------------------------------------------- CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited) -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (unaudited)
Chase U.S. Government Securities Fund -------------------------------------------------------------- Premier Shares -------------------------------------------------------------- 1/1/00 For the Years Ended December 31, Through --------------------------------------------------- 6/30/00 1999 1998 1997 1996 1995 -------- ------ ------ ------ ------ ------ Per share operating performance: Net asset value, beginning of period .......... $12.84 $13.83 $13.98 $12.76 $13.01 $10.00 ------ ------ ------ ------- ------ ------ Income from investment operations: Net investment income ........................ 0.41 0.64 0.72 0.75 0.74 0.73 Net gains or losses in investments (both realized and unrealized) .................... 0.14 (0.99) 0.54 0.47 (0.99) 2.28 ------ ------ ------ ------ ------ ------ Total from investment operations ............ 0.55 (0.35) 1.26 1.22 (0.25) 3.01 ------ ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income ......... 0.41 0.64 0.72 -- -- -- Distributions from capital gains ............. -- -- 0.68 -- -- -- In excess of realized capital gains .......... -- -- 0.01 -- -- -- ------ ------ ------ ------ ------ ------ Total distributions ......................... 0.41 0.64 1.41 -- -- -- ------ ------ ------ ------ ------ ------ Net asset value, end of period ................ $12.98 $12.84 $13.83 $13.98 $12.76 $13.01 ====== ====== ====== ====== ====== ====== Total return .................................. 4.37% (2.55%) 9.28% 9.55% (1.89%) 30.11% Ratios/supplemental data: Net assets, end of period (millions) ......... $ 6 $ 8 $ 4 $ 3 $ 3 $ 3 Ratios to average net assets:# Expenses ..................................... 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% Net investment income ........................ 6.38% 4.87% 5.07% 5.73% 6.01% 6.38% Expenses without waivers, reimbursements and earnings credits ........................ 2.44% 2.44% 3.85% 3.15% 2.09% 2.22% Net investment income without waivers, reimbursements and earnings credits ......... 4.69% 3.18% 1.97% 3.33% 4.67% 4.91% Portfolio turnover rate ....................... 50% 19% 110% 87% 48% 17%
Chase U.S. Government Securities Fund ------------------------------------- Investor Shares ------------------------------------- 1/1/00 Year 11/10/98* Through Ended Through 6/30/00 12/31/99 12/31/98 ------- -------- --------- Per share operating performance: Net asset value, beginning of period .......... $ 12.84 $ 13.83 $14.42 ------- ------- ------ Income from investment operations: Net investment income ........................ 0.40 0.61 0.09 Net gains or losses in investments (both realized and unrealized) .................... 0.14 (0.99) 0.10 ------- ------- ------ Total from investment operations ............ 0.54 (0.38) 0.19 ------- ------- ------ Less distributions: Dividends from net investment income ......... 0.40 0.61 0.09 Distributions from capital gains ............. -- -- 0.68 In excess of realized capital gains .......... -- -- 0.01 ------- ------- ------ Total distributions ......................... 0.40 0.61 0.78 ------- ------- ------ Net asset value, end of period ................ $ 12.98 12.84 $13.83 ======= ======= ====== Total return .................................. 4.23% (2.79%) 1.37% Ratios/supplemental data: Net assets, end of period (millions) ......... $ + $ + $ + Ratios to average net assets:# Expenses ..................................... 1.00% 1.00% 1.03% Net investment income ........................ 6.13% 4.62% 4.45% Expenses without waivers, reimbursements and earnings credits ........................ 28.53% 45.80% 1.92% Net investment income without waivers, reimbursements and earnings credits ......... (21.40%) (40.18%) 3.56% Portfolio turnover rate ....................... 50% 19% 110%
* 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 (unaudited) ------------------------------------------------------------ FINANCIAL HIGHLIGHTS (unaudited)
Chase Income Fund ------------------------------------------------------------ Premier Shares ------------------------------------------------------------ 1/1/00 For the Years Ended December 31, Through ------------------------------------------------- 6/30/00 1999 1998 1997 1996 1995 --------- ------ ------ ------ ------ ------ Per share operating performance: Net asset value, beginning of period .......... $18.71 $20.47 $20.18 $18.56 $18.21 $15.39 ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income ........................ 0.57 1.03 1.09 1.14 1.00 0.97 Net gains or losses in investments (both realized and unrealized) .................... (0.06) 1.59) 0.77 0.48 (0.65) 1.85 ------ ------ ------ ------ ------ ------ Total from investment operations ............ 0.51 (0.56) 1.86 1.62 0.35 2.82 ------ ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income ......... 0.57 1.03 1.09 -- -- -- Distributions from capital gains ............. -- 0.17 0.48 -- -- -- ------ ------ ------ ------ ------ ------ Total distributions ......................... 0.57 1.20 1.57 -- -- -- ------ ------ ------ ------ ------ ------ Net asset value, end of period ................ $18.65 $18.71 $20.47 $20.18 $18.56 $18.21 ====== ====== ====== ====== ====== ====== Total return .................................. 2.78% (2.78%) 9.47% 8.73% 1.91% 18.38% Ratios/supplemental data: Net assets, end of period (millions) ......... $ 62 $ 65 $ 60 $ 51 $ 54 $ 57 Ratios to average net assets:# Expenses ..................................... 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% Net investment income ........................ 6.19% 5.28% 5.28% 5.82% 5.58% 5.77% Expenses without waivers, reimbursements and earnings credits ........................ 0.95% 0.93% 0.94% 1.14% 1.07% 1.08% Net investment income without waivers, reimbursements and earnings credits ......... 5.99% 5.10% 5.09% 5.43% 5.26% 5.44% Portfolio turnover rate ....................... 95% 120% 54% 97% 72% 93%
Chase Income Fund ------------------------------------- Investor Shares ------------------------------------- 1/1/00 Year 11/10/98* Through Ended Through 6/30/00 12/31/99 12/31/98 ------- -------- --------- Per share operating performance: Net asset value, beginning of period .......... $18.72 $ 20.46 $20.77 ------ ------- ------ Income from investment operations: Net investment income ........................ 0.55 0.98 0.14 Net gains or losses in investments (both realized and unrealized) .................... (0.05) (1.57) 0.18 ------ ------- ------ Total from investment operations ............ 0.50 (0.59) 0.32 ------ ------- ------ Less distributions: Dividends from net investment income ......... 0.55 0.98 0.15 Distributions from capital gains ............. -- 0.17 0.48 ------ ------- ------ Total distributions ......................... 0.55 1.15 0.63 ------ ------- ------ Net asset value, end of period ................ $18.67 $ 18.72 $20.46 ====== ======= ====== Total return .................................. 2.71% (2.92% 1.54% Ratios/supplemental data: Net assets, end of period (millions) ......... $ 1 $ 1 $ 1 Ratios to average net assets:# Expenses ..................................... 0.99% 0.99% 1.03% Net investment income ........................ 5.94% 5.04% 4.72% Expenses without waivers, reimbursements and earnings credits ........................ 4.55% 6.22% 1.44% Net investment income without waivers, reimbursements and earnings credits ......... 2.38% (0.19%) 4.31% Portfolio turnover rate ....................... 95% 120% 54%
* Commencement of offering of class of shares. # Short periods have been annualized. See notes to financial statements. 73 ------------------------------------------------------------ CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited) ------------------------------------------------------------ FINANCIAL HIGHLIGHTS (unaudited)
Chase Balanced Fund ------------------------------------------------------------ Premier Shares ------------------------------------------------------------ 1/1/00 For the Years Ended December 31, Through ------------------------------------------------- 6/30/00 1999 1998 1997 1996 1995 --------- ------ ------ ------ ------ ------ Per share operating performance: Net asset value, beginning of period .......... $38.50 $34.54 $29.26 $23.66 $21.25 $17.16 ------ ------ ------ ------ ------- ------- Income from investment operations: Net investment income ........................ 0.42 0.78@ 0.73 0.74 0.63 0.57 Net gains or losses in investments (both realized and unrealized) .................... 0.62 4.07 6.53 4.86 1.78 3.52 ------ ------ ------ ------ ------- ------- Total from investment operations ............ 1.04 4.85 7.26 5.60 2.41 4.09 ------ ------ ------ ------ ------- ------- Less distributions: Dividends from net investment income ......... 0.48 0.70 0.73 -- -- -- Distributions from capital gains ............. -- 0.19 1.25 -- -- -- ------ ------ ------ ------ ------- ------- Total distributions ......................... 0.48 0.89 1.98 -- -- -- ------ ------ ------ ------ ------- ------- Net asset value, end of period ................ $39.06 $38.50 $34.54 $29.26 $23.66 $21.25 ====== ====== ====== ====== ======= ======= Total return .................................. 2.68% 14.23% 25.15% 23.67% 11.31% 23.83% Ratios/supplemental data: Net assets, end of period (millions) ......... $ 111 $ 103 $ 59 $ 36 $ 23 $ 21 Ratios to average net assets:# Expenses ..................................... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Net investment income ........................ 2.21% 2.19% 2.32% 2,73% 2.82% 2.94% Expenses without waivers, reimbursements and earnings credits ........................ 1.10% 1.19% 1.28% 1.28% 1.17% 1.17% Net investment income without waivers, reimbursements and earnings credits ......... 2.11% 2.00% 2.04% 2.45% 2.65% 2.77% Portfolio turnover rate ....................... 74% 45% 58% 64% 70% 98%
Chase Balanced Fund ------------------------------------- Investor Shares ------------------------------------- 1/1/00 Year 10/16/98* Through Ended Through 6/30/00 12/31/99 12/31/98 ------- -------- --------- er share operating performance: Net asset value, beginning of period .......... $38.46 $34.51 $ 31.87 ------ ------ -------- Income from investment operations: Net investment income ........................ 0.39 0.70@ 0.10 Net gains or losses in investments (both realized and unrealized) .................... 0.60 4.05 3.95 ------ ------ -------- Total from investment operations ............ 0.99 4.75 4.05 ------ ------ -------- Less distributions: Dividends from net investment income ......... 0.43 0.61 0.16 Distributions from capital gains ............. -- 0.19 1.25 ------ ------ -------- Total distributions ......................... 0.43 0.80 1.41 ------ ------ -------- Net asset value, end of period ................ $39.02 $38.46 $ 34.51 ====== ====== ======== Total return .................................. 2.55% 13.94% 12.78% Ratios/supplemental data: Net assets, end of period (millions) ......... 2 $ 2 $ 1 Ratios to average net assets:# Expenses ..................................... 1.25% 1.25% 1.25% Net investment income ........................ 1.97% 1.94% 1.84% Expenses without waivers, reimbursements and earnings credits ........................ 3.07% 3.34% 107.16% Net investment income without waivers, reimbursements and earnings credits ......... 0.15% (0.15%) (104.07%) Portfolio turnover rate ....................... 74% 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. 74 ------------------------------------------------------------ CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited) ------------------------------------------------------------ FINANCIAL HIGHLIGHTS (unaudited)
Chase Equity Income Fund ------------------------------------------------------------ Premier Shares ------------------------------------------------------------ 1/1/00 For the Years Ended December 31, Through ------------------------------------------------- 6/30/00 1999 1998 1997 1996 1995 --------- ------ ------ ------ ------ ------ Per share operating performance: Net asset value, beginning of period .......... $49.80 $46.14 $36.97 $28.21 $23.93 $17.90 ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income ........................ 0.14 0.32@ 0.33 0.40 0.43 0.44 Net gains or losses in investments (both realized and unrealized) .................... 0.58 5.65 9.32 8.36 3.85 5.59 ------ ------ ------ ------ ------ ------ Total from investment operations ............ 0.72 5.97 9.65 8.76 4.28 6.03 ------ ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income ......... 0.14 0.31 0.34 -- -- -- Distributions from capital gains ............. -- 2.00 0.14 -- -- -- ------ ------ ------ ------ ------ ------ Total distributions ......................... 0.14 2.31 0.48 -- -- -- ------ ------ ------ ------ ------ ------ Net asset value, end of period ................ 50.38 $49.80 $46.14 $36.97 $28.21 $23.93 ====== ====== ====== ====== ====== ====== Total return .................................. 1.44% 13.06% 26.20% 31.50% 17.87% 33.72% Ratios/supplemental data: Net assets, end of period (millions) ......... $ 162 $ 170 $ 128 $ 75 $ 63 $ 55 Ratios to average net assets:# Expenses ..................................... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Net investment income ........................ 0.56% 0.66% 0.82% 1.67% 1.67% 2.10% Expenses without waivers, reimbursements and earnings credits ........................ 1.05% 1.09% 1.10% 1.11% 1.07% 1.09% Net investment income without waivers, reimbursements and earnings credits ......... 0.51% 0.57% 0.72% 1.56% 1.60% 2.01% Portfolio turnover rate ....................... 6% 16% 3% 14% 24% 11%
Chase Equity Income Fund ------------------------------------- Investor Shares ------------------------------------- 1/1/00 Year 8/24/98* Through Ended Through 6/30/00 12/31/99 12/31/98 ------- -------- --------- Per share operating performance: Net asset value, beginning of period .......... $49.83 $46.23 $ 40.49 ------ ------ ------- Income from investment operations: Net investment income ........................ 0.07 0.20@ 0.06 Net gains or losses in investments (both realized and unrealized) .................... 0.58 5.63 5.89 ------ ------ ------- Total from investment operations ............ 0.65 5.83 5.95 ------ ------ ------- Less distributions: Dividends from net investment income ......... 0.07 0.23 0.07 Distributions from capital gains ............. -- 2.00 0.14 ------ ------ ------- Total distributions ......................... 0.07 2.23 0.21 ------ ------ ------- Net asset value, end of period ................ $50.41 $49.83 $46.23 ====== ====== ======= Total return .................................. 1.32% 12.70% 14.70% Ratios/supplemental data: Net assets, end of period (millions) ......... $ 5 $ 4 $ 1 Ratios to average net assets:# Expenses ..................................... $ 1.25% 1.24% 1.18% Net investment income ........................ 0.30% 0.42% 0.57% Expenses without waivers, reimbursements and earnings credits ........................ 2.40% 3.33% 37.61% Net investment income without waivers, reimbursements and earnings credits ......... (0.85%) (1.67%) (35.86%) Portfolio turnover rate ....................... 6% 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. 75 ------------------------------------------------------------ CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited) ------------------------------------------------------------ FINANCIAL HIGHLIGHTS (unaudited)
Chase Small Capitalization Fund ------------------------------------------------------------ Premier Shares ------------------------------------------------------------ 1/1/00 For the Years Ended December 31, Through ------------------------------------------------- 6/30/00 1999 1998 1997 1996 1995 --------- ------ ------ ------ ------ ------ Per share operating performance: Net asset value, beginning of period .......... $22.60 $19.96 $21.78 $17.55 $13.41 $10.23 ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income ........................ (0.02)@ (0.02)@ (0.01) 0.02 0.01 0.05 Net gains or losses in investments (both realized and unrealized) .................... 2.70 2.66 (0.46) 4.21 4.13 3.13 ------ ------ ------ ------ ------ ------ Total from investment operations ............ 2.68 2.64 (0.47) 4.23 4.14 3.18 ------ ------ ------ ------ ------ ------ 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 ................ $25.28 $22.60 $19.96 $21.78 $17.55 $13.41 ====== ====== ====== ====== ====== ====== Total return .................................. 11.86% 13.23% (1.83%) 24.08% 30.88% 31.14% Ratios/supplemental data: Net assets, end of period (millions) ......... $ 110 $ 93 $ 65 $ 40 $ 21 $ 13 Ratios to average net assets:# Expenses ..................................... 1.00% 1.00% 1.00% 1.00% 1.22% 1.35% Net investment income ........................ (0.17%) (0.13%) (0.03%) 0.13% 0.04% 0.46% Expenses without waivers and reimbursements .............................. 1.13% 1.21% 1.26% 1.40% 1.37% 1.50% Net investment income without waivers and reimbursements .......................... (0.30%) (0.34%) (0.29%) (0.27%) (0.11%) 0.31% Portfolio turnover rate ....................... 32% 60% 45% 43% 68% 89%
Chase Small Capitalization Fund ------------------------------------- Investor Shares ------------------------------------- 1/1/00 Year 8/12/98* Through Ended Through 6/30/00 12/31/99 12/31/98 ------- -------- --------- Per share operating performance: Net asset value, beginning of period .......... $22.51 $19.94 $ 19.86 ------ ------ ------- Income from investment operations: Net investment income ........................ (0.04)@ (0.08)@ (0.01) Net gains or losses in investments (both realized and unrealized) .................... 2.67 2.65 1.44 ------ ------ ------- Total from investment operations ............ 2.63 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 ................ $25.14 $22.51 $ 19.94 ====== ====== ======= Total return .................................. 11.68% 12.89% 7.56% Ratios/supplemental data: Net assets, end of period (millions) ......... $ 4 $ 1 $ 1 Ratios to average net assets:# Expenses ..................................... 1.24% 1.24% 1.24% Net investment income ........................ (0.38%) (0.37%) ( 0.18%) Expenses without waivers and reimbursements .............................. 2.89% 6.02% 74.81% Net investment income without waivers and reimbursements .......................... (2.03%) (5.15%) (73.75%) Portfolio turnover rate ....................... 32% 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. 76 ------------------------------------------------------------ CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited) ------------------------------------------------------------ FINANCIAL HIGHLIGHTS (unaudited)
Chase Core Equity Fund ------------------------------------------------------------ Premier Shares ------------------------------------------------------------ 1/1/00 For the Years Ended December 31, Through ------------------------------------------------- 6/30/00 1999 1998 1997 1996 1995 --------- ------ ------ ------ ------ ------ Per share operating performance: Net asset value, beginning of period .......... $32.24 $26.52 $21.25 $15.94 $13.01 $10.36 ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income ........................ (0.01)@ 0.04@ 0.09 0.14 0.16 0.17 Net gains or losses in investments (both realized and unrealized) .................... 0.31 6.27 6.44 5.17 2.77 2.48 ------ ------ ------ ------ ------ ------ Total from investment operations ............ 0.30 6.31 6.53 5.31 2.93 2.65 ------ ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income ......... -- 0.04 0.09 -- -- -- Distributions from capital gains ............. -- 0.55 1.17 -- -- -- ------ ------ ------ ------ ------ ------ Total distributions ......................... -- 0.59 1.26 -- -- -- ------ ------ ------ ------ ------ ------ Net asset value, end of period ................ $32.54 $32.24 $26.52 $21.25 $15.94 $13.01 ====== ====== ====== ====== ====== ====== Total return .................................. 0.93% 23.89% 30.95% 33.33% 22.54% 25.53% Ratios/supplemental data: Net assets, end of period (millions) ......... $ 193 $ 181 $ 89 $ 51 $ 29 $ 24 Ratios to average net assets:# Expenses ..................................... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Net investment income ........................ (0.05%) 0.13% 0.39% 0.74% 1.10% 1.44% Expenses without waivers and reimbursements .............................. 1.06% 1.11% 1.18% 1.20% 1.14% 1.17% Net investment income without waivers and reimbursements .......................... 0.11% 0.02% 0.21% 0.54% 0.96% 1.27% Portfolio turnover rate ....................... -- 11%- 32% 24% 29% 133%
Chase Core Equity Fund ------------------------------------- Investor Shares ------------------------------------- 1/1/00 Year 9/10/98* Through Ended Through 6/30/00 12/31/99 12/31/98 ------- -------- --------- Per share operating performance: Net asset value, beginning of period .......... $32.19 $26.52 $ 21.49 ------ ------ ------- Income from investment operations: Net investment income ........................ (0.05)@ (0.05)@ -- Net gains or losses in investments (both realized and unrealized) .................... 0.31 6.28 6.22 ------ ------ ------- Total from investment operations ............ 0.26 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 ................ $32.45 $32.19 $ 26.52 ====== ====== ======= Total return .................................. 0.81% 23.59% 29.08% Ratios/supplemental data: Net assets, end of period (millions) ......... $ 9 $ 6 $ 1 Ratios to average net assets:# Expenses ..................................... 1.25% 1.24% 1.23% Net investment income ........................ (0.30%) (0.13%) (0.03%) Expenses without waivers and reimbursements .............................. 2.15% 3.02% 140.46% Net investment income without waivers and reimbursements .......................... (1.20%) (1.89%) (139.26%) Portfolio turnover rate ....................... -- 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), and the portfolio turnover rate is disclosed at the Portfolio level. @ Calculated based upon average shares outstanding. See notes to financial statements. 77 ------------------------------------------------------------ CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited) ------------------------------------------------------------ FINANCIAL HIGHLIGHTS (unaudited)
Chase Equity Growth Fund ------------------------------------------------------------ Premier Shares ------------------------------------------------------------ 1/1/00 For the Years Ended December 31, Through ------------------------------------------------- 6/30/00 1999 1998 1997 1996 1995 --------- ------ ------ ------ ------ ------ Per share operating performance: Net asset value, beginning of period .......... $68.09 $52.36 $38.36 $27.95 $23.20 $18.44 ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income ........................ (0.13)@ (0.14)@ 0.03 0.07 0.10 0.17 Net gains or losses in investments (both realized and unrealized) .................... 1.43 16.78 15.78 10.34 4.65 4.59 ------ ------ ------ ------ ------ ------ Total from investment operations ............ 1.30 16.64 15.81 10.41 4.75 4.76 ------ ------ ------ ------ ------ ------ 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 ................ $69.39 $68.09 $52.36 $38.36 $27.95 $23.20 ====== ====== ====== ====== ====== ====== Total return .................................. 1.91% 31.85% 41.38% 37.20% 20.52% 25.78% Ratios/supplemental data: Net assets, end of period (millions) ......... $ 365 $ 320 $ 179 $ 74 $ 57 $ 46 Ratios to average net assets:# Expenses ..................................... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Net investment income ........................ (0.38%) (0.24%) 0.05% 0.20% 0.41% 0.78% Expenses without waivers and reimbursements .............................. 1.02% 1.03% 1.09% 1.11% 1.08% 1.10% Net investment income without waivers and reimbursements .......................... (0.40%) (0.27%) (0.04%) 0.09% 0.33% 0.68% Portfolio turnover rate ....................... -- 15%- 35% 35% 62% 99%
Chase Equity Growth Fund ------------------------------------- Investor Shares ------------------------------------- 1/1/00 Year 8/13/98* Through Ended Through 6/30/00 12/31/99 12/31/98 ------- -------- --------- Per share operating performance: Net asset value, beginning of period .......... $67.85 $52.30 $45.57 ------ ------ ------ Income from investment operations: Net investment income ........................ (0.21)@ (0.29)@ (0.02) Net gains or losses in investments (both realized and unrealized) .................... 1.41 16.75 8.53 ------ ------ ------ Total from investment operations ............ 1.20 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 ................ $69.05 $67.85 $52.30 ====== ====== ====== Total return .................................. 1.77% 31.54% 18.80% Ratios/supplemental data: Net assets, end of period (millions) ......... $ 32 $ 15 $ 1 Ratios to average net assets:# Expenses ..................................... 1.25% 1.24% 1.25% Net investment income ........................ ( 0.64%) (0.48%) (0.19%) Expenses without waivers and reimbursements .............................. 1.81% 2.34% 5.88% Net investment income without waivers and reimbursements .......................... (1.20%) (1.58%) 4.82% Portfolio turnover rate ....................... -- 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), and the portfolio turnover rate is disclosed at the Portfolio level. @ Calculated based upon average shares outstanding. See notes to financial statements. 78 -------------------------------------------------------------------------------- CORE EQUITY PORTFOLIO Portfolio of Investments -------------------------------------------------------------------------------- As of June 30, 2000 (unaudited) (Amounts in Thousands) Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- 96.9% -------------------------------------------------------------------------------- Common Stock -- 96.9% --------------------- Advertising -- 0.5% 16 Omnicom Group $1,421 Airlines -- 1.0% 144 Southwest Airlines, Inc. 2,727 Automotive -- 0.9% 33 Ford Motor Co. 1,437 14 General Motors Corp. 794 4 Visteon Corp. * 53 ------ 2,284 Banking -- 1.5% 32 Bank of America Corp. 1,397 56 Bank of New York Co., Inc. 2,615 ------ 4,012 Biotechnology -- 1.1% 42 Amgen, Inc. * 2,915 Computer Networks -- 3.2% 134 Cisco Systems, Inc. * 8,492 Computer Software -- 5.6% 105 Microsoft Corp. * 8,438 57 Oracle Corp. * 4,787 26 Symantec Corp. * 1,400 ------ 14,625 Computers/Computer Hardware -- 6.7% 69 Dell Computer Corp. * 3,389 66 EMC Corp. * 5,086 22 Hewlett-Packard Co. 2,691 31 International Business Machines Corp. 3,410 34 Sun Microsystems, Inc. * 3,087 ------ 17,663 Consumer Products -- 3.5% 47 Avon Products, Inc. 2,096 55 Colgate-Palmolive Co. 3,277 34 Gillette Co. 1,170 47 Philip Morris Companies, Inc. 1,240 25 Procter & Gamble Co. 1,433 ------ 9,216 Diversified -- 5.5% 224 General Electric Co. 11,862 56 Tyco International LTD (Bermuda) 2,660 ------ 14,522 Electronics/Electrical Equipment -- 2.9% 8 Agilent Technologies, Inc. * 604 23 Molex, Inc. 1,092 31 Sanmina Corp. * 2,676 78 Solectron Corp. * 3,273 ------ 7,645 Financial Services -- 8.6% 120 American Express Co. 6,244 98 Charles Schwab Corp. 3,310 97 Citigroup, Inc. 5,852 31 Merrill Lynch & Co., Inc. 3,554 44 Morgan Stanley Dean Witter & Co. 3,621 ------ 22,581
See notes to financial statements. 79 CORE EQUITY PORTFOLIO Portfolio of Investments (Continued) As of June 30, 2000 (unaudited) (Amounts in Thousands) Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- Continued -------------------------------------------------------------------------------- Food/Beverage Products -- 3.4% 31 Anheuser-Busch Companies, Inc. $ 2,340 49 Coca-Cola Co. 2,806 86 PepsiCo, Inc. 3,799 ------- 8,945 Health Care/Health Care Services -- 2.1% 46 Guidant Corp. * 2,262 63 Medtronic, Inc. 3,126 ------- 5,388 Insurance -- 3.0% 67 American International Group, Inc. 7,842 Internet Services/Software -- 1.4% 44 America Online, Inc. * 2,318 10 Yahoo! Inc. * 1,270 ------- 3,588 Machinery & Engineering Equipment -- 0.4% 27 Dover Corp. 1,083 Metals/Mining -- 0.8% 68 Alcoa, Inc. 1,982 Multi-Media -- 2.5% 90 The Walt Disney Co. 3,503 41 Time Warner, Inc. 3,152 ------- 6,655 Oil & Gas -- 5.6% 29 BJ Services Co. * 1,816 21 Chevron Corp. 1,768 101 Exxon Mobil Corp. 7,921 51 Royal Dutch Petroleum Co., N.Y. Registered Shares (Netherlands) 3,109 ------- 14,614 Pharmaceuticals -- 7.6% 28 American Home Products Corp. 1,622 40 Bristol-Myers Squibb Co. 2,352 24 Eli Lilly & Co. 2,427 25 Johnson & Johnson 2,544 47 Merck & Co., Inc. 3,565 156 Pfizer, Inc. 7,477 ------- 19,987 Retailing -- 7.6% 35 Albertson's, Inc. 1,154 47 Best Buy Co., Inc. * 2,952 61 Home Depot, Inc. 3,044 35 Target Corp. 2,036 131 Wal-Mart Stores, Inc. 7,555 97 Walgreen Co. 3,114 ------- 19,855 Semi-Conductors -- 7.9% 41 Altera Corp. * 4,149 42 Applied Materials, Inc. * 3,829 71 Intel Corp. 9,529 48 Texas Instruments, Inc. 3,276 ------- 20,783
See notes to financial statements. 80 CORE EQUITY PORTFOLIO Portfolio of Investments (Continued) As of June 30, 2000 (unaudited) (Amounts in Thousands) Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- Continued -------------------------------------------------------------------------------- Telecommunications -- 5.5% 34 AT&T Corp. $ 1,080 52 BellSouth Corp. 2,219 31 GTE Corp. 1,938 71 SBC Communications, Inc. 3,053 43 Sprint Corp. (FON Group) 2,206 89 WorldCom, Inc. * 4,066 -------- 14,562 Telecommunications Equipment -- 5.3% 61 ADC Telecommunications, Inc. * 5,149 10 JDS Uniphase Corp. * 1,247 53 Lucent Technologies, Inc. 3,157 63 Nortel Networks Corp., (Canada) 4,266 -------- 13,819 Utilities -- 2.8% 48 AES Corp. * 2,176 21 Duke Energy Corp. 1,206 61 Enron Corp. 3,922 -------- 7,304 -------------------------------------------------------------------------------- Total Long-Term Investments 254,510 (Cost $193,218) -------------------------------------------------------------------------------- Short-Term Investment -- 3.1% --------------------------------------------------------------------------------
Principal Amount Repurchase Agreement -- 3.1% ---------------------------- $8,261 Greenwich Capital Markets, Inc., in a joint trading account at 6.80%, due 07/03/00, (Dated 06/30/00, Proceeds $8,266, Secured by GNMA & FHLMC, $8,479, 7.00% through 7.50%, due 11/15/21 through 07/16/24; Market Value $8,427) 8,261 (Cost $8,261) -------------------------------------------------------------------------------- Total Investments -- 100.0% $262,771 (Cost $201,479) --------------------------------------------------------------------------------
See notes to financial statements. 81 -------------------------------------------------------------------------------- EQUITY GROWTH PORTFOLIO Portfolio of Investments -------------------------------------------------------------------------------- As of June 30, 2000 (unaudited) (Amounts in Thousands) Shares Issuer Value -------------------------------------------------------------------------------- Long-Term Investments -- 97.7% -------------------------------------------------------------------------------- Common Stock -- 97.7% --------------------- Biotechnology -- 5.8% 226 Amgen, Inc. * $15,907 85 Biogen, Inc. * 5,486 68 MedImmune, Inc. * 5,051 ------- 26,444 Computer Networks -- 5.5% 400 Cisco Systems, Inc. * 25,435 Computer Software -- 7.0% 205 Microsoft Corp. * 16,392 186 Oracle Corp. * 15,669 ------- 32,061 Computers/Computer Hardware -- 11.1% 164 Dell Computer Corp. * 8,068 301 EMC Corp. * 23,147 95 International Business Machines Corp. 10,433 103 Sun Microsystems, Inc. * 9,394 ------- 51,042 Consumer Products -- 1.6% 114 Gillette Co. 3,987 58 Procter & Gamble Co. 3,316 ------- 7,303 Diversified -- 6.1% 477 General Electric Co. 25,292 60 Tyco International LTD (Bermuda) 2,824 ------- 28,116 Electronics/Electrical Equipment -- 1.9% 92 Molex, Inc. 4,413 76 Symbol Technologies, Inc. 4,109 ------- 8,522 Financial Services -- 6.0% 337 Charles Schwab Corp. 11,322 77 Merrill Lynch & Co., Inc. 8,907 86 Morgan Stanley Dean Witter & Co. 7,197 ------- 27,426 Food/Beverage Products -- 2.5% 94 Coca-Cola Co. 5,383 141 PepsiCo, Inc. 6,269 ------- 11,652 Health Care/Health Care Services -- 1.4% 35 Medtronic, Inc. 1,748 54 UnitedHealth Group Inc. 4,614 ------- 6,362 Multi-Media -- 3.7% 260 The Walt Disney Co. 10,072 90 Time Warner, Inc. 6,823 ------- 16,895 Pharmaceuticals -- 10.8% 59 Bristol-Myers Squibb Co. 3,429 74 Eli Lilly & Co. 7,426 54 Johnson & Johnson 5,509
See notes to financial statements. 82 EQUITY GROWTH PORTFOLIO Portfolio of Investments (Continued) As of June 30, 2000 (unaudited) (Amounts in Thousands) Shares Issuer Value --------------------------------------------------------------------------- Long-Term Investments -- Continued --------------------------------------------------------------------------- Pharmaceuticals -- Continued 105 Merck & Co., Inc. $ 8,017 437 Pfizer, Inc. 20,993 83 Pharmacia Corp. 4,275 ------- 49,649 Restaurants/Food Services -- 1.2% 191 Tricon Global Restaurants, Inc. * 5,394 Retailing --7.3% 133 Best Buy Co., Inc. * 8,406 178 Home Depot, Inc. 8,883 283 Wal-Mart Stores, Inc. 16,307 ------- 33,596 Semi-Conductors -- 17.9% 232 Applied Materials, Inc. * 21,025 211 Intel Corp. 28,238 143 KLA-Tencor Corp. * 8,372 310 Novellus Systems, Inc. * 17,556 105 Texas Instruments, Inc. 7,185 ------- 82,376 Telecommunications -- 1.5% 77 Nextel Communications, Inc., Class A * 4,726 39 Sprint Corp. (FON Group) 2,006 ------- 6,732 Telecommunications Equipment -- 6.4% 38 ADC Telecommunications, Inc. * 3,204 47 JDS Uniphase Corp. * 5,682 148 Lucent Technologies, Inc. 8,745 170 Nortel Networks Corp. (Canada) 11,630 ------- 29,261 --------------------------------------------------------------------------- Total Long-Term Investments 448,266 (Cost $299,713) --------------------------------------------------------------------------- Short-Term Investment -- 2.3% ---------------------------------------------------------------------------
Principal Amount Repurchase Agreement -- 2.3% ---------------------------- $10,602 Greenwich Capital Markets, Inc., in a joint trading account at 6.80%, due 07/03/00, (Dated 06/30/00, Proceeds $10,608, Secured by GNMA, $10,695, 7.50%, due 07/16/24; Market Value $10,817) 10,602 (Cost $10,602) --------------------------------------------------------------------------- Total Investments -- 100.0% $458,868 (Cost $310,315) ---------------------------------------------------------------------------
INDEX: * -- Non-income producing security. FHLMC -- Federal Home Loan Mortgage Corporation. GNMA -- Government National Mortgage Association. See notes to financial statements. 83 -------------------------------------------------------------------------------- CORE EQUITY AND EQUITY GROWTH PORTFOLIOS Statement of Assets and Liabilities As of June 30, 2000 (unaudited) -------------------------------------------------------------------------------- (Amounts in Thousands) Equity Core Equity Growth Portfolio Portfolio ASSETS: Investment securities, at value (Note 1) ......... $262,771 $458,868 Cash ............................................. 1 1 Receivables: Interest and dividends .......................... 103 113 ----------------------------------------------------------------------------- Total Assets .................................. 262,875 458,982 ----------------------------------------------------------------------------- LIABILITIES: Accrued liabilities: (Note 2) Investment advisory fees ........................ 147 265 Administration fees ............................. 10 18 Other ........................................... 56 47 ----------------------------------------------------------------------------- Total Liabilities ............................. 213 330 ----------------------------------------------------------------------------- NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS .............................. $262,662 $458,652 ----------------------------------------------------------------------------- Cost of investments .............................. $201,479 $310,315
See notes to financial statements. 84 -------------------------------------------------------------------------------- CORE EQUITY AND EQUITY GROWTH PORTFOLIOS Statement of Operations For the six months ended June 30, 2000 (unaudited) -------------------------------------------------------------------------------- (Amounts in Thousands) Equity Core Equity Growth Portfolio Portfolio INVESTMENT INCOME: Dividend ..................................................... $ 789 $ 730 Interest ..................................................... 325 545 Foreign taxes withheld ....................................... (4) (1) ------------------------------------------------------------------------------------------------- Total investment income ................................... 1,110 1,274 ------------------------------------------------------------------------------------------------- EXPENSES: (Note 2) Investment advisory fees ..................................... 879 1,544 Administration fees .......................................... 59 103 Custody and accounting fees .................................. 41 43 Professional fees ............................................ 28 29 Trustees' fees and expenses .................................. 3 4 Other ........................................................ 13 16 ------------------------------------------------------------------------------------------------- Total expenses ............................................ 1,023 1,739 Less amounts waived (Note 2A) ................................ 71 51 ------------------------------------------------------------------------------------------------- Net expenses ............................................... 952 1,688 ------------------------------------------------------------------------------------------------- Net investment income (loss) .............................. 158 (414) ------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions ................. 3,089 5,683 Change in net unrealized appreciation of investments ......... 628 3,222 ------------------------------------------------------------------------------------------------- Net realized and unrealized gain on investments .............. 3,717 8,905 ------------------------------------------------------------------------------------------------- Net increase in net assets from operations ................... $3,875 $8,491
See notes to financial statements. 85 -------------------------------------------------------------------------------- CORE EQUITY AND EQUITY GROWTH PORTFOLIOS Statement of Changes in Net Assets For the periods indicated (unaudited) -------------------------------------------------------------------------------- (Amounts in Thousands) Core Equity Equity Growth Portfolio Portfolio 01/01/00 08/12/99* 01/01/00 08/12/99* Through Through Through Through 06/30/00 12/31/99 06/30/00 12/31/99 ----------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss) ........... $ 158 $ 173 $ (414) $ (85) Net realized gain (loss) on investment transactions ................ 3,089 2,121 5,683 (283) Change in net unrealized appreciation of investments ............ 628 23,715 3,222 67,192 --------------------------------------------------------------------------------------------------------------------- Increase in net assets from operations ........................... 3,875 26,009 8,491 66,824 --------------------------------------------------------------------------------------------------------------------- TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS (Note 1): Contributions .......................... 84,917 207,886 147,474 332,120 Withdrawals ............................ (39,459) (20,566) (61,494) (34,763) --------------------------------------------------------------------------------------------------------------------- Net increase from transactions in investors' beneficial interests 45,458 187,320 85,980 297,357 --------------------------------------------------------------------------------------------------------------------- Total increase in net assets ......... 49,333 213,329 94,471 364,181 NET ASSETS: Beginning of period .................... 213,329 -- 364,181 -- --------------------------------------------------------------------------------------------------------------------- End of period .......................... $ 262,662 $ 213,329 $ 458,652 $ 364,181
* Commencement of operations. See notes to financial statements. 86 -------------------------------------------------------------------------------- PORTFOLIOS Notes to Financial Statements (unaudited) -------------------------------------------------------------------------------- 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. 87 PORTFOLIOS Notes to Financial Statements (unaudited) (continued) 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 six months ended June 30, 2000, the Advisor voluntarily waived advisory fees of $71,210 and $51,043 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. 88 PORTFOLIOS Notes to Financial Statements (unaudited) (continued) 3. Investment Transactions For the six months ended June 30, 2000, purchases and sales of investments (excluding short-term investments) were as follows (in thousands): CEP EGP -------------------------------------------------------------------------------- Purchases (excluding U.S. Government).......... $88,762 $205,515 Sales (excluding U.S. Government) .............. 41,085 112,272
The portfolio turnover rates of CEP and EGP for the six months ended June 30, 2000, were 18% and 28% respectively. 4. Federal Income Tax Matters For Federal income tax purposes, the cost and unrealized appreciation (depreciation) in value of the investment securities at June 30, 2000, are as follows (in thousands): CEP EGP -------------------------------------------------------------------------------- Aggregate cost ......................... $201,479 $310,315 -------- -------- Gross unrealized appreciation.......... $ 65,096 $156,084 Gross unrealized depreciation.......... (3,804) (7,531) -------- -------- Net unrealized appreciation ............ $ 61,292 $148,553 ======== ========
5. Concentrations At June 30, 2000, CEP and EGP invested 33.0% and 49.8%, respectively, of their portfolios in securities issued by technology sector companies, such as computer hardware and software companies, internet connectivity providers, and telecommunications equipment manufacturers. Valuations of companies in the technology sector are typically subject to greater volatility than other sectors. 89 -------------------------------------------------------------------------------- CHASE FUNDS SEMI-ANNUAL REPORT -------------------------------------------------------------------------------- Investment Adviser, Administrator, This report is submitted for the general Shareholder and Fund Servicing information of the shareholders of Agent and Custodian the Funds. It is not authorized for Chase Funds Service Center distribution to prospective investors 210 West 10th Street in the Funds unless preceded or Kansas City, MO 64105 accompanied by a prospectus. Legal Counsel The financial information in this report Simpson Thacher & Bartlett has been taken from the books and 425 Lexington Avenue records of the Funds without examina- New York, NY 10017 tion by independent accountants, who express no opinion thereto. Independent Accountants PricewaterhouseCoopers LLP To obtain a prospectus for any 1177 Avenue of the Americas of the Chase Funds, call New York, NY 10036 1-800-5-CHASE-0. The prospectus contains more complete information, Chase Funds are distributed by Chase including charges and ongoing expenses. Fund Distributors, Inc., which is Please read it carefully before you unaffiliated with The Chase Manhattan invest or send money. Bank. Chase and its respective affiliates receive compensation from Chase Funds for providing investment advisory and other services.
(C)2000 The Chase Manhattan Corporation. All Rights Reserved. August 2000 [CHASE FUNDS(sm) LOGO] Chase Funds Fulfillment Center 393 Manley Street West Bridgewater, MA 02379-1039