-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QkcBUJv2/w/8J1LV1GGTpO69MSRc2UdJp3quOc3IEJnFIn9FlmUNsNFtV5ipvyTu u8cw1w1iy4FtoHtxrlnllw== 0000950146-99-000991.txt : 19990504 0000950146-99-000991.hdr.sgml : 19990504 ACCESSION NUMBER: 0000950146-99-000991 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990228 FILED AS OF DATE: 19990503 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MUTUAL FUND TRUST CENTRAL INDEX KEY: 0000919034 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-08358 FILM NUMBER: 99608822 BUSINESS ADDRESS: STREET 1: 1 CHASE MANHATTAN PLAZA STREET 2: 3RD FLOOR CITY: NEW YORK STATE: NY ZIP: 10081 MAIL ADDRESS: STREET 1: ONE CHASE SQUARE 7TH FLOOR CITY: ROCHESTER STATE: NY ZIP: 14643 N-30D 1 Chase Vista Tax Free Funds Chairman's Letter April 10, 1999 Dear Shareholder: We are pleased to present this semi-annual report for Chase Vista Tax Free Income Fund, Chase Vista New York Tax Free Income Fund and Chase Vista California Intermediate Tax Free Income Fund for the six-month period ended February 28, 1999. Inside you will find information on the performance of each Fund along with a report from the portfolio management team. Tax-Free Income Markets Move Slightly Higher Amidst Market Volatility Early in the period, the tax-free bond market enjoyed a strong rally as interest rates fell sharply due to fears of a major global economic downturn ignited by the financial crisis in Russia. After the Federal Reserve Board reduced short-term interest rates in late September and October, those worries subsided considerably, causing interest rates to stabilize and eventually move higher. The Fed reduced rates one more time in November. As the end of 1998 approached, concerns over the Russian financial crisis began to subside. However, just as one problem faded, another appeared--this time in Brazil, as that country's government devalued its currency, sending shock waves throughout Latin America and many markets around the world. While rates fell, they did not tumble as sharply as they had in the summer because stronger-than-expected domestic economic reports helped to offset the worries over Brazil. In February, concerns over Brazil's problems started to wane, but the stream of strong economic data did not. In this environment, interest rates rose sharply, causing bond prices to tumble (as much as four tenths of a percentage point during the first two weeks of February alone). Fittingly, February was capped off with the release of the strongest Gross Domestic Product report in more than two years. If there was a glimmer of hope for bond investors late in the period, it could be found in Fed Chairman Alan Greenspan's semi-annual Humphery-Hawkins testimony. Mr. Greenspan noted that he expects the longest running peacetime economic expansion to moderate later in the year, which should help bond prices rebound in the months ahead. Sincerely, /s/ Fergus Reid Fergus Reid 3 Chase Vista Tax Free Income Fund as of February 28, 1999 (unaudited) Fund Facts Objective Federal tax exempt income* Primary investments Municipal bonds Suggested investment time frame 3-5 Years minimum Market benchmark Lehman Municipal Bond Index Lipper Funds category General Municipal Debt Funds Average Class A Class B ------------- ------------ Inception date 9/8/87 11/4/93 Newspaper symbol TF Inc not listed Net assets $60 Million $15 Million Average maturity 22.7 years 22.7 years Average duration 7.4 years 7.4 years Average quality Aa/AA Aa/AA
* A portion of the Fund's income may be subject to the Alternative Minimum Tax, and some investors may be subject to certain state and local taxes. Average Maturity/Quality [BOX CHART OMITTED] +---+---+---+ | | | X | +---+---+---+ | | | | +---+---+---+ | | | | +---+---+---+ Source: Morningstar 4 Chase Vista Tax Free Income Fund as of February 28, 1999 (unaudited) How the Fund Performed Chase Vista Tax Free Income Fund, which seeks to provide tax-exempt income through a portfolio of higher-quality municipal bonds of varying maturities, had a total return of 1.91% for the six-month period ended February 28, 1999 (Class A shares, without sales charges). This compares to a return of 1.76% for the Lipper General Municipal Debt Funds Average and 2.62% for the unmanaged Lehman Municipal Bond Index. How the Fund Was Managed The period was punctuated by high market volatility and a slight upward move in interest rates. For the six months ended February 28, 1999, the yield on the 30-year Treasury bond, the key benchmark of long-term interest rate activity, rose from 5.34% to 5.57%. Our decision to continue to overweight the Fund in California municipal bonds contributed favorably to performance. Throughout much of the period, these securities recorded good investment results primarily due to relatively strong demand. The Fund also benefitted from the sharp decline in interest rates in September and early October. The drop in rates was largely due to a flight to quality among investors, as the economic and currency problems in Russia ignited fears of economic uncertainty around the globe. Finally, the Fund's slightly lower-than-average maturity in February helped performance as interest rates moved higher on a wave of strong economic data. These included high consumer confidence, a sharp increase in consumer spending and a robust Gross Domestic Product report for the fourth quarter of 1998. For the period, the Federal Reserve Board broke from its neutral monetary policy and reduced short-term interest rates in September, October and November. The September rate cut was the first time that the Fed made a change in interest rates since March of 1997. Where the Fund May Be Headed Looking ahead, we expect interest rates to remain in a trading range. While the economy may continue to show strength, we believe the lingering threat of further economic troubles outside the U.S. will keep rates from rising significantly. Additionally, the inflationary environment remains subdued. As for our strategy, we intend to use any meaningful increase in interest rates as an opportunity to extend the Fund's average maturity and increase income to shareholders. As always, we will continue to focus on high-quality securities that meet our strict investment criteria. 5 Chase Vista Tax Free Income Fund as of February 28, 1999 (unaudited) How Much of the Fund Was Invested [PIE CHART OMITTED] Investments (98.6%) Cash/Other (1.4%) Average Annual Total Returns This table shows the average annual total returns. This is where you can see the Fund's short-term performance, which, as with the stock markets, tends to be more volatile than the long-term trend.
1 Year 5 Years 10 Years -------------- -------------- --------------- Class A Shares Without Sales Charge 5.62% 5.98% 8.53% With Sales Charge* 0.87% 5.01% 8.03% Class B Shares Without CDSC 4.68% 5.13% 8.04% With CDSC** -0.32% 4.80% 8.04%
Source: Lipper Analytical Services, Inc. Past performance is not predictive of future performance. Investment return and principal value will fluctuate with market conditions. When shares are redeemed, they may be worth more or less than their original cost. The Fund is currently waiving fees. This voluntary waiver may be modified or terminated at any time, which would reduce performance. * The maximum sales charge for A shares is 4.50%. ** Assumes a 5% CDSC for the one year period, a 2% CDSC for the five year period and a 0% CDSC for the ten year period. + The Fund commenced operations on 9/8/87. Class B Shares were introduced on 11/4/93. Investors should note that the information presented for B Shares prior to their introduction is based upon historical expenses of the predecessor Class A Shares, which are lower than the actual expenses of the B Shares. Additionally, annualized figures have been reinstated to reflect the maximum contingent deferred sales charge that applies to the Fund's B Shares. 6 Chase Vista Tax Free Income Fund as of February 28, 1999 (unaudited) 10-Year Performance This chart shows what the long-term growth would have been of a hypothetical $10,000 investment in the Chase Visa Tax Free Income Fund compared to its key benchmarks. This is where you see the Fund's long-term trend. This chart is for illustrative purposes only. [LINE GRAPH OMITTED] [PLOT POINTS FOR LINE GRAPH] Chase Vista Lehman Lipper New York New York Muni Tax Exempt Tax Free Bond Muni Debt Date Income Fund Index Funds Avg. 2/28/89 9550 10000 10000 2/28/90 10446.01 11025.88 10845.04 2/28/91 11321.30 12042.41 11680.92 2/29/92 12524.37 13245.89 12951.71 2/28/93 14713.24 15070.88 14924.70 2/28/94 15493.34 15855.52 15745.90 2/28/95 15586.43 16154.71 15663.42 2/29/96 17086.89 17939.89 17175.24 2/28/97 17943.32 18928.37 17936.49 2/28/98 19631.35 20661.68 19532.42 2/28/99 20885.82 21982.73 20548.07 Source: Lipper Analytical Services, Inc. Past performance is not predictive of future performance. Investment return and principal value will fluctuate with market conditions. When shares are redeemed, they may be worth more or less than their original cost. This chart illustrates comparative performance for $10,000 invested in Class A shares of the Chase Vista Tax Free Income Fund, the Lehman Municipal Bond Index and the Lipper General Municipal Debt Funds Average from February 28, 1989 to February 28, 1999. The performance of the Fund assumes reinvestment of all dividends and capital gains and includes a 4.50% sales charge. The performance of the average and the index does not include a sales charge and has been adjusted to reflect reinvestment of all dividends and capital gains on securities included in the benchmark. The unmanaged Lehman Municipal Bond Index is a broad-based total return performance benchmark for the long-term, investment grade tax-exempt bond market. Bonds included in the Lehman Municipal Bond Index are representative of the market. An individual cannot invest in the index. The Lipper General Municipal Debt Funds Average represents the average performance of a universe of 267 actively-managed municipal bond funds. Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge. A portion of the Fund's income may be subject to the Alternative Minimum Tax, and some investors may be subject to certain state and local taxes. The Fund is currently waiving fees. This voluntary waiver may be modified or terminated at any time, which would reduce performance. 7 Chase Vista Tax Free Income Fund Portfolio of Investments February 28, 1999 (unaudited) (amounts in thousands)
Principal Amount Issuer Value - ---------------------------------------------------------------------- Long Term Municipal Bonds -- 92.4% - ---------------------------------------------------------------------- Alabama -- 2.5% $ 2,000 Birmingham, Alabama, Water & Sewer, Ser. A, Warrants, Ser. A, Rev., 4.75%, 01/01/29 $ 1,870 ------- California -- 8.3% 150 California Board of Regents, UCLA, Educational Facilities Authority, Rev., 7.00%, 09/01/00 - 162 150 California Educational Facilities Authority, Pepperdine Univ., Rev., 7.20%, 11/01/15 163 150 Orange County Water District, COP, 5.75%, 08/15/14 155 2,500 San Francisco, California, City & County Community International Airport, Second Ser., Issue 18A, Rev., 5.25%, 05/01/12 2,635 2,800 South Orange County Public Financing Authority, Senior Lien, Ser. A, Rev., 6.20%, 09/01/13 @ 3,108 ------- 6,223 ------- Connecticut -- 2.2% 1,700 Mashantucket Western Pequot Tribe Connecticut, Special Rev., Ser. A, Rev., 5.50%, 09/01/28 1,666 ------- Delaware -- 2.8% 2,000 Delaware Transportation Authority, Transportation Systems, Ser. A, Rev., 5.25%, 07/01/12 2,085 ------- Georgia -- 9.4% 2,000 Fulton County, Georgia, School District, GO, 5.25%, 01/01/15 2,113 2,000 Georgia State, GO, 4.00%, 07/01/12 1,910 2,700 Municipal Electric Authority of Georgia, Project One, Sub-Ser. A, Rev., 6.25%, 01/01/14 @ 3,026 ------- 7,049 -------
See notes to financial statements. 8 Chase Vista Tax Free Income Fund Portfolio of Investments February 28, 1999 (unaudited) (continued) (amounts in thousands)
Principal Amount Issuer Value - ------------------------------------------------------------------- Long Term Municipal Bonds -- (continued) - ------------------------------------------------------------------- Illinois -- 0.3% $ 150 Chicago O'Hare Intl. Airport, Ser. A, Rev., 7.50%, 01/01/03 $ 157 65 Illinois Housing Development Authority, Ser. A, Rev., 8.00%, 06/01/26 68 ------ 225 ------ Kansas -- 5.3% 3,500 Kansas City, Kansas, Utility System, Rev., 6.38%, 09/01/04 - 3,947 ------ Maryland -- 0.1% 105 Maryland State Community Development Administration, Housing & Community Development, Single Family, 2nd Series, Rev., 7.60%, 04/01/23 110 ------ Massachusetts -- 3.0% 55 Massachusetts State Housing Finance Authority, Rev., 7.75%, 12/01/20 57 930 Massachusetts State, Water Pollution Abatement Trust, New Bedford Program, Ser. A, Rev., 5.25%, 02/01/12 989 1,000 New England Education Loan Marketing Corp., Massachusetts Student Loan, Sub-Issue H, Rev., 6.90%, 11/01/09 1,159 ------ 2,205 ------ Michigan -- 2.2% 1,000 Michigan State Housing Authority, Rental Housing, Ser. B, Rev.,7.55%, 04/01/23 1,068 500 Wayne County Building Authority, Ser. A, GO, 8.00%, 03/01/02 - 569 ------ 1,637 ------ Missouri -- 1.1% 720 Sikeston Missouri Electric, Rev., 6.00%, 06/01/16 821 ------
See notes to financial statements. 9 Chase Vista Tax Free Income Fund Portfolio of Investments February 28, 1999 (unaudited) (continued) (amounts in thousands)
Principal Amount Issuer Value - ------------------------------------------------------------------ Long Term Municipal Bonds -- (continued) - ------------------------------------------------------------------ Montana -- 1.6% $ 1,100 Montana State, Long Range Building Program, Ser. D, GO, 5.38%, 08/01/12 $ 1,167 ------- Nevada -- 0.2% 110 Nevada Housing Division, Single Family, Rev., 8.20%, 10/01/19 120 ------- New Jersey -- 6.9% 3,455 Middletown, New Jersey, Board of Education, GO, 5.80%, 08/01/20 @ 3,690 1,500 New Jersey State, Educational Facilities Authority, Fairleigh Dickinson University, Series G, Rev., 5.70%, 07/01/28 1,487 ------- 5,177 ------- New York -- 17.6% 2,000 Long Island Power Authority, New York, Electric Systems, Series A, Rev., 5.50%, 12/01/13 2,187 2,450 New York City, New York, Ser. A, GO, 6.25%, 08/01/09 2,764 500 New York State, Dorm Authority, Mt. St. Vincent College, Rev., 7.00%, 05/01/08 546 1,700 New York State, Dorm Authority, New York University Educational Facilities, Series A, Rev., 5.75%, 07/01/27 1,906 5,000 Port Authority, New York & New Jersey, Consolidated-Ninety-Third Ser., Rev., 6.13%, 06/01/94 5,770 ------- 13,173 ------- Ohio -- 6.3% 4,000 Cleveland, Ohio, Public Power System First Mortgage, Ser. A, Rev., 7.00%, 11/15/04 @, - 4,712 -------
See notes to financial statements. 10 Chase Vista Tax Free Income Fund Portfolio of Investments February 28, 1999 (unaudited) (continued) (amounts in thousands)
Principal Amount Issuer Value - ------------------------------------------------------------------ Long Term Municipal Bonds -- (continued) - ------------------------------------------------------------------ Oklahoma -- 3.5% $ 2,500 Oklahoma State, Turnpike Authority, Second Ser., Ser. A, Rev., 5.25%, 01/01/13 $ 2,638 ------- Pennsylvania -- 4.7% 3,000 Delaware Valley, Pennsylvania, Regional Finance Authority, Local Government, Ser. A, Rev., 5.50%, 08/01/28 3,249 230 New Castle Pennsylvania Area Hospital Authority, St. Francis Hospital, Ser. A, Rev., 6.50%, 11/15/17 242 ------- 3,491 ------- Puerto Rico -- 0.1% 75 Puerto Rico Urban Renewal & Housing, Rev., 7.88%, 10/01/04 78 ------- South Carolina -- 5.4% 3,500 Piedmont Municipal Power Agency, South Carolina, Electric, Ser. A, Rev., 6.60%, 01/01/21 3,509 250 South Carolina Housing Finance & Development Authority, Fairway Apts. Project, Rev., 7.63%, 04/01/33 262 250 South Carolina Housing Finance & Development Authority, Ser. B, Rev., 7.80%, 07/01/09 256 ------- 4,027 ------- South Dakota -- 0.1% 100 South Dakota Housing Development Authority, Ser. A, Rev., 5.88%, 05/01/12 104 ------- Utah -- 0.4% 250 Utah State Board of Regents, Student Loan, Ser. F, Rev., 7.45%, 11/01/08 270 ------- Virgin Islands -- 4.1% 3,000 Virgin Islands Public Finance Authority, Series B, Rev., 5.50%, 10/01/22 3,043 -------
See notes to financial statements. 11 Chase Vista Tax Free Income Fund Portfolio of Investments February 28, 1999 (unaudited) (continued) (amounts in thousands)
Principal Amount Issuer Value - --------------------------------------------------------------- Long Term Municipal Bonds -- (continued) - --------------------------------------------------------------- Virginia -- 3.9% $17,000 Pocahontas Parkway Association, Virginia, Toll Road, Series B, Rev., 0.00%, 08/15/29 $ 2,894 ------- Washington -- 0.4% 250 Washington State Public Power Supply, Nuclear Project, Ser. B, Rev., 7.25%, 07/01/09 297 - --------------------------------------------------------------- Total Long Term Municipal Bonds (Cost $65,751) $69,029 - --------------------------------------------------------------- Short Term Investments--6.8% - --------------------------------------------------------------- Floating Rate Demand Note -- 1.6% 1,200 California State, Floating Rate Receipts, SG 86, 3.15%, 03/01/99 (Cost $1,200) 1,200 Shares Money Market Funds -- 5.2% 3,261 Provident Municipal Cash Money Market Fund 3,261 617 Provident Municipal Money Market Fund 617 ------- Total Money Market Funds (Cost $3,878) 3,878 - --------------------------------------------------------------- Total Short Term Investments (Cost $5,078) 5,078 - --------------------------------------------------------------- Total Investments -- 99.2% (Cost $70,829) $74,107 - ---------------------------------------------------------------
Index: - - -- The maturity date shown is the date of the prerefunded call. @ -- All or a portion of this security is segregated. COP -- Certificate of Deposit. Dorm -- Dormitory Floating Rate Demand Note -- The maturity date shown is the next interest reset date; the rate shown is the rate in effect at February 28, 1999. GO -- General Obligation Bond. Rev. -- Revenue Bond
See notes to financial statements. 12 Chase Vista New York Tax Free Income Fund as of February 28, 1999 (unaudited) Fund Facts Objective Income exempt from federal and New York state and city taxes* Primary investments New York municipal bonds Suggested investment time frame 3-5 years minimum Market benchmark Lehman Municipal Bond Index Lipper Funds category NY Tax Exempt Municipal Debt Funds Average Class A Class B -------------- ------------ Inception date 9/8/87 11/4/93 Newspaper symbol NY TF not listed Net assets $113 Million $15 Million Average maturity 18.2 years 18.2 years Average duration 7.4 years 7.4 years Average quality A/A A/A
* A portion of the Fund's income may be subject to the Alternative Minimum Tax, and some investors may be subject to certain state and local taxes. Average Maturity/Quality [BOX CHART OMITTED] +---+---+---+ | | | X | +---+---+---+ | | | | +---+---+---+ | | | | +---+---+---+ Source: Morningstar 13 Chase Vista New York Tax Free Income Fund as of February 28, 1999 (unaudited) How the Fund Performed Chase Vista New York Tax Free Income Fund, which seeks to provide triple tax exempt income through a portfolio of higher quality longer-term municipal bonds, had a total return of 1.99% for the year ended February 28, 1999. (Class A shares, without a sales charge). This compares to a return of 1.92% for the Lipper New York Tax Exempt Municipal Debt Funds Average and 2.62% for the Lehman Municipal Bond Index. How the Fund Was Managed High new issue supply volume of New York municipal securities weighed on the market throughout much of the period. New York City obligations were among the Fund's better performers, helped by credit upgrades during the first half of 1998. The Fund's exposure to Puerto Rico general obligation and U.S. territorial paper had a modest impact on Fund performance. Early in the period, management extended the Fund's average maturity in anticipation of a decline in interest rates due to the economic and currency crisis in Russia. This strategy proved beneficial to shareholders as interest rates declined sharply due to investor concerns that the crisis would lead to a major global economic slowdown. As the problems in Russia started to subside, we shortened the Fund's average maturity due to our belief that interest rates would stabilize. This decision served to protect shareholders as rates began to rise before retreating once again in January due to the financial crisis in Brazil. It also proved effective late in February as rates spiked due to a spate of stronger-than-expected economic data. These included the highest consumer confidence report ever and a revised Gross Domestic Product report for the fourth quarter of 1998 that was the best in more than two years. For the period, the Federal Reserve Board broke from its neutral monetary policy and reduced short-term interest rates in September, October and November. The September rate cut was the first time that the Fed made a change in interest rates since March of 1997. Where the Fund May Be Headed Our outlook for the Fund is favorable. The oversupply problem in New York municipal bonds is beginning to diminish, which should be positive for these securities in the months ahead. We also believe interest rates are likely to stay in a trading range going forward. Given this backdrop, we intend to maintain our current investment strategy, focusing on high-quality municipal securities that meet our strict investment criteria. Any further upward move in rates is likely to be viewed as a potential opportunity to extend the Fund's average maturity and provide shareholders with a higher level of income. 14 Chase Vista New York Tax Free Income Fund as of February 28, 1999 (unaudited) How Much of the Fund Was Invested [PIE CHART OMITTED] Investments (98.4%) Cash/Other (1.6%) Average Annual Total Returns This table shows the average annual total returns. This is where you can see the Fund's short-term performance, which, as with the stock markets, tends to be more volatile than the long-term trend.
1 Year 5 Years 10 Years -------------- -------------- --------------- Class A Shares Without Sales Charge 5.37% 5.95% 8.03% With Sales Charge* 0.63% 4.98% 7.54% Class B Shares Without CDSC 4.44% 5.11% 7.58% With CDSC** -0.55% 4.78% 7.58%
Source: Lipper Analytical Services, Inc. Past performance is not predictive of future performance. Investment return and principal value will fluctuate with market conditions. When shares are redeemed, they may be worth more or less than their original cost. The Fund is currently waiving fees. This voluntary waiver may be modified or terminated at any time, which would reduce performance. * The maximum sales charge for A shares is 4.50%. ** Assumes a 5% CDSC for the one year period, a 2% CDSC for the five year period and a 0% CDSC for the ten year period. + The Fund commenced operations on 9/8/87. Class B Shares were introduced on 11/4/93. Investors should note that the information presented for B Shares prior to their introduction is based upon historical expenses of the predecessor Class A Shares, which are lower than the actual expenses of the B Shares. Additionally, annualized figures have been restated to reflect the maximum contingent deferred sales charge that applies to the Fund's B Shares. 15 Chase Vista New York Tax Free Income Fund as of February 28, 1999 (unaudited) 10-Year Performance This chart shows what the long-term growth would have been of a hypothetical $10,000 investment in the Chase Vista New York Tax Free Income Fund compared to its key benchmarks. This is where you see the Fund's long-term trend. This chart is for illustrative purposes only. [LINE GRAPH OMITTED] [PLOT POINTS FOR THE LINE GRAPH] Chase Vista Lehman Lipper General Tax Free Muni Muni Debt Income Fund Bond Index Funds Avg. ----------- ---------- ---------- 1989 9550 10000 10000 1990 10447.5 11025.9 10885.1 1991 11420.5 12042.4 11767.9 1992 12820.4 13245.9 12964.8 1993 15358.1 15070.9 14814.5 1994 16193.1 15855.5 15596.4 1995 16247.5 16154.7 15688 1996 17851.2 17939.9 17234.6 1997 18783.2 18928.4 18008.5 1998 20502.8 20661.7 19640 1999 21654.7 21932.1 20596.7 Source: Lipper Analytical Services, Inc. Past performance is not predictive of future performance. Investment return and principal value will fluctuate with market conditions. When shares are redeemed, they may be worth more or less than their original cost. This chart illustrates comparative performance for $10,000 invested in Class A shares of the Chase Vista New York Tax Free Income Fund, the Lehman Municipal Bond Index and the Lipper New York Tax Exempt Municipal Debt Funds Average from February 28, 1989 to February 28, 1999. The performance of the Fund assumes reinvestment of all dividends and capital gains and includes a 4.50% sales charge. The performance of the average and the index does not include a sales charge and has been adjusted to reflect investment of all dividends and capital gains on securities included in the benchmark. A portion of the Fund's income may be subject to the Alternative Minimum Tax, and some investors may be subject to certain state and local taxes. The Fund is currently waiving fees. This voluntary waiver may be modified or terminated at any time, which would reduce performance. The unmanaged Lehman Municipal Bond Index is a broad-based total return performance benchmark for the long-term, investment grade tax-exempt bond market. Bonds included in the Lehman Municipal Bond Index are representative of the market. An individual cannot invest in the index. The Lipper New York Tax Exempt Municipal Debt Funds Average represents the average performance of a universe of 100 actively-managed New York tax-exempt municipal bond mutual funds. Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge. 16 Chase Vista New York Tax Free Income Fund Portfolio of Investments February 28, 1999 (unaudited) (amounts in thousands)
Principal Amount Issuer Value - ------------------------------------------------------------------ Long Term Municipal Bonds -- 96.5% - ------------------------------------------------------------------ $ 1,500 Long Island Power Authority, New York, Electric Systems, Rev., 4.25%, 04/01/00 $ 1,514 2,000 Long Island Power Authority, New York, Electric Systems, Ser. A, Rev., 5.50%, 12/01/11 2,197 4,000 Long Island Power Authority, New York, Electric Systems, Ser. A, Rev., 5.50%, 12/01/13 4,373 1,000 Metropolitan Transit Authority, New York, Dedicated Tax Fund, Ser. A, Rev., 4.75%, 04/01/28 949 550 Monroe County IDA, Public Improvement, Canal Ponds Park, Ser. A, Rev., 7.00%, 06/15/13 606 2,480 Monroe County, New York, Public Improvement, Ser. A, GO, 6.00%, 03/01/08 2,820 3,260 Nassau County, New York, Ser. P, GO, 6.40%, 11/01/08 3,745 3,665 Nassau County, New York, Ser. P, GO, 6.40%, 11/01/09 4,226 1,000 New York City, GO, 3.00%, 08/01/01 990 1,000 New York City, Escrowed to Maturity, GO, 7.50%, 02/01/03 1,110 1,750 New York City, New York IDA, Civil Facilities, Horace Mann School Project, Rev., 5.00%, 07/01/18 1,729 1,430 New York City, New York IDA, Civil Facility, New York Blood Center, Inc., Rev., 7.20%, 05/01/04 - 1,642 1,500 New York City, New York IDA, Civil Facility, YMCA Greater New York Project, Rev., 5.80%, 08/01/16 1,579
See notes to financial statements. 17 Chase Vista New York Tax Free Income Fund Portfolio of Investments February 28, 1999 (unaudited) (continued) (amounts in thousands)
Principal Amount Issuer Value - ---------------------------------------------------------------- Long Term Municipal Bonds -- (continued) - ---------------------------------------------------------------- $ 735 New York City, New York, City Municipal Water Financing Authority Water & Sewer Systems, Unrefunded Balance, Ser. A, Rev., 7.00%, 06/15/09 $ 797 3,010 New York City, New York, Industrial Development Agency, Brooklyn Navy Yard Cogen Partners, Rev., 6.20%, 10/01/22 3,363 1,000 New York City, New York, Ser A, GO, 6.25%, 08/01/08 1,139 160 New York City, New York, Ser F, GO, 8.25%, 11/15/02 180 5,000 New York City, New York, Ser J, GO, 5.35%, 08/01/12 5,292 860 New York State Housing Finance Agency, Unrefunded Balance, Rev., 8.00%, 11/01/08 925 300 New York State Housing Finance Authority, Rev., 6.95%, 08/15/12 326 745 New York State Medical Care Facilities Financing Authority, Insured Mortgage, Rev., 7.88%, 08/15/00 @, - 802 25 New York State Medical Care Facilities Financing Authority, Insured Mortgage, Rev., 8.00%, 02/15/28 26 1,000 New York State Municipal Bond, Buffalo Special Project, Rev., 6.88%, 03/15/06 1,083 4,615 New York State Thruway Authority, Service Contract, Local Highway & Bridge Transportation Fund, Series C, Rev., 5.25%, 04/01/10 4,941 2,500 New York State Thruway Authority, Service Contract, Local Highway & Bridges, Rev., 6.00%, 04/01/11 2,776 2,205 New York State Urban Development Corp., Center for Individual Innovation, Rev., 5.50%, 01/01/13 2,367
See notes to financial statements. 18 Chase Vista New York Tax Free Income Fund Portfolio of Investments February 28, 1999 (unaudited) (continued) (amounts in thousands)
Principal Amount Issuer Value - ------------------------------------------------------------------ Long Term Municipal Bonds -- (continued) - ------------------------------------------------------------------ $ 500 New York State, Dorm Authority, Mt. St. Vincent College, Rev., 7.00%, 05/01/08 $ 546 2,550 New York State, Dorm Authority, Niagara Nursing Home, Rev., 5.55%, 08/01/27 2,667 1,000 New York State, Dorm Authority, Office of General Services, Rev, 5.25%, 04/01/08 1,062 1,000 New York State, Dorm Authority, Office of General Services, Rev, 5.25%, 04/01/09 1,060 1,040 New York State, Dorm Authority, Office of General Services, Rev, 5.25%, 04/01/10 1,099 1,100 New York State, Dorm Authority, Office of General Services, Rev, 5.25%, 04/01/11 1,155 2,000 New York State, Dorm Authority, State University Educational Facilities, Ser. A, Rev, 4.75%, 05/15/25 1,902 1,275 New York State, Dorm Authority, State University Educational Facilities, Ser. A, Rev., 6.00%, 05/15/10 1,443 3,000 New York State, Environmental Facilities Corp., Pollution Control, State Water, Revolving Fund, New York City Municipal Water Authority, Rev., 5.75%, 06/15/12 3,359 705 New York State, Environmental Facilities Corp., Pollution Control, State Water, Revolving Fund, Ser. A, Rev., 7.25% , 06/15/10 772 4,005 New York State, Local Government Assistance Corp., Ser. A, Rev., 5.25%, 04/01/16 4,209 5,000 Niagara New York Frontier Transportation Authority, Greater Buffalo International Airport, Rev., 5.75%, 04/01/04 @ 5,407
See notes to financial statements. 19 Chase Vista New York Tax Free Income Fund Portfolio of Investments February 28, 1999 (unaudited) (continued) (amounts in thousands)
Principal Amount Issuer Value - ------------------------------------------------------------------- Long Term Municipal Bonds -- (continued) - ------------------------------------------------------------------- $ 5,000 Port Authority, New York & New Jersey, Consolidated-Ninety-Third Ser. Rev., 6.13%, 06/01/94 $ 5,770 3,000 Port Authority, New York & New Jersey, Special Obligation, 3rd Installment, Special Project, KIAC-4, Rev., 7.00%, 10/01/07 3,324 2,000 Puerto Rico Commonwealth, GO, 6.00%, 07/01/16 2,296 3,000 Puerto Rico Commonwealth, Highway & Transportation Authority, Ser. A, Rev., 4.75%, 07/01/38 2,842 3,500 Puerto Rico Commonwealth, Public Improvements, GO, 5.25%, 07/01/15 3,673 2,000 Puerto Rico Industrial Med. & Environmental Pollution Facilities Financing Authority, Rev., 6.45%, 12/01/25 2,196 5,000 Rensselaer New York Municipal Leasing Corp., Rensselaer County Nursing Home, Rev., 6.90%, 06/01/24 @ 5,485 2,000 Suffolk County, New York, IDA, Nissequogue Cogen Partners Facility, Rev., 5.50%, 01/01/23 2,006 2,980 Triborough Bridge & Tunnel Authority, New York, General Purpose, Ser. A, Rev., 5.13%, 01/01/18 3,023 1,000 Triborough Bridge & Tunnel Authority, New York, Special Obligation, Ser. A, Rev., 6.60%, 01/01/05 1,072 1,000 Virgin Islands Water & Power Authority Electric System, Rev., 5.30%, 07/01/18 1,006 1,000 Virgin Islands Water & Power Authority Electric System, Rev., 5.30%, 07/01/21 1,003 5,000 Virgin Islands, Public Finance Authority, Series B Rev., 5.50%, 10/01/22 5,072
See notes to financial statements. 20 Chase Vista New York Tax Free Income Fund Portfolio of Investments February 28, 1999 (unaudited) (continued) (amounts in thousands)
Principal Amount Issuer Value - ------------------------------------------------------------------- Long Term Municipal Bonds -- (continued) - ------------------------------------------------------------------- $ 1,150 Virgin Islands, Public Finance Authority, Ser. A, Rev., 7.25%, 10/01/18 $ 1,310 1,050 Westchester County New York IDA, AGR Realty Co., Rev., 5.75%, 01/01/02 1,090 2,000 Westchester County New York IDA, Resource Recovery, Resco Co. Project, Ser. A, Rev., 5.70%, 07/01/08 2,174 1,150 Westchester County, GO, 6.70%, 11/01/06 1,352 1,000 Western Nassau County, New York, Water Authority Water Systems, Rev., 5.50%, 05/01/16 1,053 2,000 Western Nassau County, New York, Water Authority Water Systems, Rev., 5.65%, 05/01/26 2,120 - ------------------------------------------------------------------- Total Long Term Municipal Bonds (Cost $118,129) 124,045 - ------------------------------------------------------------------- Short Term Investments -- 2.2% - ------------------------------------------------------------------- Shares Value - ------------------------------------------------------------------- Money Market Funds -- 2.2% 2,765 Provident New York Money Market Fund (Cost $2,765) $ 2,765 - ------------------------------------------------------------------- Total Investments -- 98.7% (Cost $120,894) $126,810 - -------------------------------------------------------------------
Index: - - -- The maturity date shown is the date of the prerefunded call. @ -- All or a portion of this security is segregated. Dorm -- Dormitory GO, -- General Obligation Bond. IDA -- Industrial Development Agency. Rev, -- Revenue Bond
See notes to financial statements. 21 Chase Vista California Intermediate Tax Free Income Fund as of February 28, 1999 (unaudited) Fund Facts Objective Income exempt from federal and California state taxes* Primary investments California municipal bonds Suggested investment time frame 3-5 years minimum Market benchmark Lehman Municipal Bond Index Lehman California Intermediate Municipal Bond Index Lipper Funds category California Intermediate Municipal Debt Funds Average Class A ------- Inception date 7/16/93 Newspaper symbol CA TF Int Net assets $25 Million Average maturity 9.7 years Average duration 6.1 years Average quality Aa/AA
* A portion of the Fund's income may be subject to the Alternative Minimum Tax, and some investors may be subject to certain state and local taxes. Average Maturity/Quality [BOX CHART OMITTED] +---+---+---+ | | | X | +---+---+---+ | | | | +---+---+---+ | | | | +---+---+---+ Source: Morningstar 22 Chase Vista California Intermediate Tax Free Income Fund as of February 28, 1999 (unaudited) How the Fund Performed Chase Vista California Intermediate Tax Free Income Fund, which seeks to provide double tax-exempt income through a portfolio of higher-quality, intermediate-term municipal bonds, had a total return of 2.49% for the six months ended February 28, 1999. (Class A Shares without a sales charge). This compares to a return of 2.37% for the Lipper California Intermediate Municipal Debt Funds Average and 2.94% for the Lehman California Intermediate Municipal Bond Index. How the Fund Was Managed The six-month period ended February 28, 1999 was punctuated by market volatility and a slight upward move in interest rates. For the reporting period, the yield on the 10-year Treasury bond, a key benchmark of intermediate-term interest rate activity, rose from 5.06% on September 1, 1998 to 5.28% on February 28, 1999. Throughout the period, the Fund benefited from the relatively strong demand for California municipal bonds. The Fund's investment in non-callable bonds also proved rewarding. This enabled us to avoid having to reinvest proceeds from bonds called prior to maturity at lower interest rates. Key strategy decisions regarding the portfolio's average maturity contributed favorably to investment results. Early in the period, we extended the Fund's average maturity as rates fell sharply due to fears of global economic uncertainty brought on by the Russian financial crisis, gyrations in the value of the dollar and a worsening trade balance. Late in 1998, we shortened the average maturity before rates soared due to stronger-than-expected economic data. In addition to the lowest inflation rate in a generation and the highest consumer confidence rate ever, the revised Gross Domestic Product report for the fourth quarter of 1998 (6.1%) was the best in more than two years. For the period, the Federal Reserve Board broke from its neutral monetary policy and reduced short-term interest rates in September, October and November. The September rate cut was the first time that the Fed made a change in interest rates since March of 1997. Where the Fund May Be Headed In the months ahead, we expect interest rates to stay in a trading range. We also believe the Fed will continue its neutral monetary policy, barring a sharp increase in domestic economic activity or a dramatic economic event outside the United States that would pose a threat to global economic growth. As for the Fund, we continue to have a favorable outlook because supply/demand dynamics still favor California municipal securities. Given this backdrop, we intend to maintain our current strategy, focusing on high-quality issuers with relatively attractive yields. 23 Chase Vista California Intermediate Tax Free Income Fund as of February 28, 1999 (unaudited) How Much of the Fund Was Invested [PIE CHART OMITTED] Investments (98.7%) Cash/Other (1.3%) Average Annual Total Returns This table shows the average annual total returns. This is where you can see the Fund's short-term performance, which, as with the stock markets, tends to be more volatile than the long-term trend.
Since 1 Year 5 Years Inception (7/16/93) ------------ ------------ ------------------- Class A Shares Without Sales Charge 5.67% 5.94% 5.64% With Sales Charge* 0.91% 4.97% 4.78%
Source: Lipper Analytical Services, Inc. Past performance is not predictive of future performance. Investment return and principal value will fluctuate with market conditions. When shares are redeemed, they may be worth more or less than their original cost. *The maximum sales charge for A shares is 4.50%. The Fund is currently waiving certain fees. This voluntary waiver may be modified or terminated at any time, which would reduce performance. 24 Chase Vista California Intermediate Tax Free Income Fund as of February 28, 1999 (unaudited) Life of Fund Performance This chart shows what the long-term growth would have been of a hypothetical $10,000 investment in the Chase Vista California Intermediate Tax Free Income Fund compared to its key benchmarks. This is where you see the Fund's long-term trend. This chart is for illustrative purposes only. [LINE GRAPH OMITTED] [PLOT POINTS FOR THE LINE GRAPH] Chase Vista Lipper Lehman California California California Intermediate Intermediate Intermediate Lehman Tax Free Muni Debt Muni Bond Muni Bond Income Fund Funds Avg. Index Index ------------ ------------ ------------ ---------- 1993 9550 10000 10000 10000 1994 9721.31 10156.3 10251.2 10223.5 1995 10370.9 10956.6 11097.8 10794.5 1996 11004.6 11678.2 11707.7 11379.9 1997 11978.5 12878.7 12816.4 12319.2 1998 12558.1 13649.7 13457.8 12858.7 1999 13091.8 14224 14080.6 13358.1 Source: Lipper Analytical Services, Inc. Past performance is not predictive of future performance. Investment return and principal value will fluctuate with market conditions. When shares are redeemed, they may be worth more or less than their original cost. This chart illustrates comparative performance for $10,000 invested in Class A shares of the Chase Vista California Intermediate Tax Free Income Fund, the Lehman Municipal Bond Index, the Lehman California Intermediate Municipal Bond Index and the Lipper California Intermediate Municipal Debt Funds Average from July 16, 1993 to February 28, 1999. The Fund's performance includes a 4.50% sales charge and assumes the reinvestment of all dividends and capital gains. The performance of the average and the index does not include a sales charge and has been adjusted to reflect reinvestment of all dividends and capital gains on securities included in the benchmark. A portion of the Fund's income may be subject to the Alternative Minimum Tax, and some investors may be subject to certain state and local taxes. The Fund is currently waiving fees. This voluntary waiver may be modified or terminated at any time, which would reduce performance. The unmanaged Lehman Municipal Bond Index is a broad-based total return performance benchmark for the long-term, investment grade tax-exempt bond market. Bonds included in the Lehman Municipal Bond Index are representative of the market. An individual cannot invest in the index. The unmanaged Lehman California Intermediate Municipal Bond Index is a total return performance benchmark for the California investment grade tax exempt bond market. Bonds included in the Lehman California Intermediate Municipal Bond Index are representative of the market. An individual cannot invest in the index. The Lipper California Intermediate Municipal Debt Funds Average represents the average performance of a universe of 29 actively-managed California tax-exempt municipal bond funds. Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge. 25 Chase Vista California Intermediate Tax Free Fund Portfolio of Investments February 28, 1999 (unaudited) (amounts in thousands)
Principal Amount Issuer Value - ------------------------------------------------------------------- Long Term Municipal Bonds -- 88.1% - ------------------------------------------------------------------- $ 1,500 California State, Department Water Resources Center, VY Project, Water Systems, Ser. U, Rev., 5.00%, 12/01/09 $ 1,603 250 California State, Public Works Board, Lease Revenue, Ser. A, Rev., 6.00%, 09/01/01 266 1,850 Contra Costa California Water District, Ser. G, Rev., 5.75%, 10/01/14 @ 2,020 1,995 Fallbrook California, United High School District, San Diego County, GO, 5.38%, 09/01/12 2,183 1,000 Franklin-McKinley, California School District, GO, 6.00%, 07/01/16 @ 1,141 1,000 Irvine, California, Public Facilities & Infrastructure Authority, Assessment Ser. A, Rev., 4.50%, 09/02/12 999 1,010 La Mesa-Spring Valley, California, School Districts, Capital Projects Refinancing, COP, 5.50%, 09/01/11 1,112 375 Los Angeles, California, Union School District, Ser. A, GO, 6.00%, 07/01/15 429 1,000 Los Angeles County, California, Transition Community, Sales Tax, Proposition C, Second Sr., Ser. A, Rev., 5.88%, 07/01/02 1,074 1,000 Metropolitan Water District, Southern California, Waterworks, Ser. A, Rev., 5.75%, 07/01/21 1,128 340 Northern California, Power Agency, Public Power, Escrowed to Maturity, Ser. A, Rev., 5.80%, 07/01/09 388 660 Northern California, Power Agency, Public Power Authority, Unrefunded Balance, Ser. A, Rev., 5.80%, 07/01/09 746 1,000 Puerto Rico Commonwealth, Public Improvements, GO, 5.00%, 07/01/05 1,063
See notes to financial statements. 26 Chase Vista California Intermediate Tax Free Fund Portfolio of Investments February 28, 1999 (unaudited) (continued) (amounts in thousands)
Principal Amount Issuer Value - ------------------------------------------------------------------- Long Term Municipal Bonds -- (continued) - ------------------------------------------------------------------- $ 1,000 Redwood City, California, Elementary School District, GO, 5.00%, 08/01/16 @ $ 1,025 1,000 San Bernardino County, California, Medical Center Financing Project, Ser. A, COP, 5.88%, 08/01/26 1,134 1,000 San Francisco California, City & County Airport, Community International Airport, Second Series, Issue 18A, Rev., 6.00%, 05/01/04 1,098 1,000 Santa Clara County, California, Financing Authority, Lease, Ser. A, Rev., 5.75%, 11/15/13 1,129 1,200 South Orange County Public Financing Authority, Senior Lien, Ser. A, Rev., 6.20%, 09/01/13 1,332 1,000 University of California, UC Medical Center, Rev., 10.00%, 07/01/06 1,368 705 Valley Health Systems California Hospital, Improvement Project, Ser. A, Rev., 5.25%, 05/15/99 708 - ------------------------------------------------------------------- Total Long Term Municipal Bonds (Cost $21,051) 21,946 - ------------------------------------------------------------------- Short Term Investments -- 11.1% - ------------------------------------------------------------------- Floating Rate Demand Notes -- 8.9% 200 Anaheim California, Police Facilities Refinancing Project, COP, 2.50%, 03/03/99 200 500 California Pollution Control Financing PCR, Pacific Gas & Electric, Ser. F, Rev., 3.10%, 03/01/99 500 1,000 Irvine Ranch, California Water District, Improvement District No. 182, Ser. A, GO, 3.00%, 03/01/99 1,000
See notes to financial statements. 27 Chase Vista California Intermediate Tax Free Fund Portfolio of Investments February 28, 1999 (unaudited) (continued) (amounts in thousands)
Principal Amount Issuer Value - ------------------------------------------------------------------- Short Term Investments -- (continued) - ------------------------------------------------------------------- $ 500 Orange County California Water District, Project B, Rev., 3.15%, 03/01/99 $ 500 ------- Total Floating Rate Demand Notes (Cost $2,200) 2,200 - ------------------------------------------------------------------- Shares Money Market Fund -- 2.2% 555 Provident California Money Market Fund 555 (Cost $555) - ------------------------------------------------------------------- Total Short Term Investments (Cost $2,755) 2,755 - ------------------------------------------------------------------- Total Investments -- 99.2% (Cost $23,806) $24,701 - -------------------------------------------------------------------
Index: - - -- The maturity date shown is the date of the prerefunded call. 28 @ -- All or a portion of this security is segregated. COP -- Certificate of Participation. Floating Rate Demand Notes -- The maturity date shown is the next interest reset date; the rate shown is the rate in effect at February 28, 1999. GO, -- General Obligation Bond. PCR -- Pollution Control Revenue. Rev, -- Revenue Bond
See notes to financial statements. 28 Chase Vista Funds Statement of Assets and Liabilities February 28, 1999 (unaudited) (Amounts in Thousands, Except Per Share Amounts) - --------------------------------------------------------------------------------
California New York Intermediate Tax Free Tax Free Tax Free Income Fund Income Fund Fund ------------- ------------- ------------- ASSETS: Investment securities, at value (Note 1) $74,107 $126,810 $ 24,701 Other assets ........................... 9 1 3 Receivables: Interest .............................. 894 1,880 320 Fund shares sold ...................... 73 86 -- Other ................................. 39 46 2 ------- -------- -------- Total Assets ........................ 75,122 128,823 25,026 ------- -------- -------- LIABILITIES: Payables Fund shares redeemed .................. 301 93 34 Dividends ............................. 80 108 37 Accrued liabilities: (Note 2) Investment advisory fees .............. 3 25 -- Administration fees ................... 9 15 2 Shareholder servicing fees ............ 8 13 -- Distribution fees ..................... 9 9 -- Custody fees .......................... 14 23 11 Other ................................. 30 51 31 ------- -------- -------- Total Liabilities ................... 454 337 115 ------- -------- -------- NET ASSETS: Paid in capital ......................... 71,322 122,023 23,520 Accumulated undistributed net investment income ...................... (98) (55) 188 Accumulated net realized gain on investment transactions ................ 166 602 308 Net unrealized appreciation of investments ............................ 3,278 5,916 895 ------- -------- -------- Net Assets: .............................. $74,668 $128,486 $ 24,911 ======= ======== ======== Shares of beneficial interest outstanding ($.001 par value; unlimited number of shares authorized) Class A Shares ......................... 4,664 9,408 2,440 Class B Shares ......................... 1,153 1,260 -- Class A: Net asset value and redemption price per share (net assets/shares outstanding) ........................... $ 12.85 $ 12.05 $ 10.21 Maximum offering price per share (net asset value per share/95.5%) $ 13.46 $ 12.62 $ 10.69 Class B: Net asset value and maximum offering price per share (net assets/shares outstanding) ............. $ 12.78 $ 12.02 $ -- ======= ======== ======== Cost of investments ..................... $70,829 $120,894 $ 23,806 ======= ======== ========
See notes to financial statements. 29 Chase Vista Funds Statement of Operations For the six months ended Feb. 28, 1999 (unaudited) - -------------------------------------------------------------------------------- (Amounts in Thousands)
California New York Intermediate Tax Free Tax Free Tax Free Income Fund Income Fund Fund ------------- ------------- ------------- INTEREST INCOME: (Note 1C) ............................ $ 1,918 $ 3,210 $ 556 ------- ------- ------ EXPENSES: (Note 2) Investment advisory fees ............................ 111 188 36 Administration fees ................................. 55 94 18 Shareholder servicing fees .......................... 92 157 30 Distribution fees ................................... 130 194 30 Custodian fees ...................................... 37 39 18 Printing and postage ................................ 12 24 4 Professional fees ................................... 16 20 16 Registration costs .................................. 15 -- 5 Transfer agent fees ................................. 59 64 17 Trustees fees and expenses .......................... 2 3 1 Other ............................................... 4 2 1 ------- ------- ------ Total expenses .................................... 533 785 176 Less amounts waived (Note 2E) ....................... 189 247 103 ------- ------- ------ Net expenses ...................................... 344 538 73 ------- ------- ------ Net investment income ............................ 1,574 2,672 483 ------- ------- ------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain ( loss) on: Investments ....................................... 610 846 348 Futures transactions .............................. (134) (214) (37) Change in net unrealized appreciation/ depreciation on investments ....................... (698) (937) (182) ------- ------- ------ Net realized and unrealized gain (loss) on investments and futures transactions .............. (222) (305) 129 ------- ------- ------ Net increase in net assets from operations ......... $ 1,352 $ 2,367 $ 612 ======= ======= ======
See notes to financial statements. 30 - -------------------------------------------------------------------------------- Chase Vista Funds Statement of Changes in Net Assets (unaudited) (Amounts in Thousands) See notes to financial statements.
California New York Intermediate Tax Free Tax Free Tax Free Income Fund Income Fund Fund ------------------------- -------------------------- ------------------------ 09/01/98 09/01/98 09/01/98 through Year Ended through Year Ended through Year Ended 02/28/99 8/31/98 02/28/99 8/31/98 02/28/99 8/31/98 ------------ ------------ ------------- ------------ ------------ ----------- INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income ............................. $ 1,574 $ 3,230 $ 2,672 $ 4,750 $ 483 $ 1,056 Net realized gain on investments and futures transactions ..................................... 476 1,721 632 1,444 311 318 Change in net unrealized appreciation/depreciation on investments and futures ....................... (698) 1,732 (937) 3,152 (182) 453 -------- -------- --------- --------- -------- -------- Increase in net assets from operations ............ 1,352 6,683 2,367 9,346 612 1,827 -------- -------- --------- --------- -------- -------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: Class A .......................................... (1,307) (2,723) (2,413) (4,223) (484) (1,054) Class B .......................................... (267) (510) (259) (514) -- -- Net realized gain on investment transactions: Class A .......................................... -- -- (960) (847) (317) (238) Class B .......................................... -- -- (134) (137) -- -- -------- -------- --------- --------- -------- -------- Total dividends and distributions ............... (1,574) (3,233) (3,766) (5,721) (801) (1,292) -------- -------- --------- --------- -------- -------- Increase (decrease) from capital share transactions (Note 5) ............................ (1,486) (3,413) 4,212 25,339 1,104 (2,064) -------- -------- --------- --------- -------- -------- Total increase (decrease) ........................ (1,708) 37 2,813 28,964 915 (1,529) NET ASSETS: Beginning of period .............................. 76,376 76,339 125,673 96,709 23,996 25,525 -------- -------- --------- --------- -------- -------- End of period .................................... $ 74,668 $ 76,376 $ 128,486 $ 125,673 $ 24,911 $ 23,996 ======== ======== ========= ========= ======== ========
31 Chase Vista Funds Notes to Financial Statements (unaudited) - -------------------------------------------------------------------------------- 1. Organization and Significant Accounting Policies -- Mutual Fund 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, non-diversified management investment company. Effective March 16, 1998, the Vista Family of Mutual Funds changed it's name to the Chase Vista Funds. Chase Vista Tax Free income Fund ("CVTFI"), Chase Vista New York Tax Free Income Fund ("CVNYTFI"), and Chase Vista California Intermediate Tax Free Fund ("CVCITF") (collectively the "Funds"), are three separate portfolios of the Trust. The CVTFI and CVNYTFI Funds offer two classes of shares, referred to as Class A Shares and Class B Shares. Class A Shares generally provide for a front-end sales charge while Class B Shares provide for a contingent deferred sales charge. All classes of shares have equal rights as to earnings, assets and voting privileges, except that each class may bear different distribution expenses and each class has exclusive voting rights with respect to its distribution plan. 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. Valuation of investments -- Fixed income securities (other than short-term obligations), including listed issues, are valued using matrix pricing systems of a major dealer in bonds which take into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, without exclusive reliance upon quoted exchange or over-the-counter prices. 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. B. Repurchase agreements -- It is the Fund's policy that repurchase agreements are fully collateralized by U.S. Treasury and Government agency securities. All collateral is held by the Fund's custodian bank, sub-custodian or a bank with which the custodian bank has entered into a sub-custodian agreement or is segregated in the Federal Reserve Book Entry System. If the seller of a repurchase agreement defaults and the value of the collateral declines, or if the seller enters into an insolvency proceeding, realization of the collateral may be delayed or limited. C. Security transactions and investment income -- Investment transactions are ac- counted 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 determined on the basis of coupon interest accrued, adjusted for amortization of premiums and accretion of discount. D. Futures contracts --When a Fund enters into a futures contract, it makes an initial margin deposit in a segregated account, either in cash or liquid securities. Thereafter, the futures contract is marked to market and the fund makes (or receives) additional cash payments daily to (from) the broker. Changes in the value of the contract are recorded as unrealized appreciation/depreciation until the contract is closed or settled. The Funds may enter into futures contracts only on exchanges or boards of trade. The exchange or board of trade acts as the counterparty to each futures transaction, therefore, the Fund's credit risk is limited to failure of the exchange or board of trade. 32 Chase Vista Funds Notes to Financial Statements (continued) (unaudited) - -------------------------------------------------------------------------------- The Funds invest in U.S. Treasury and/or Municipal Bond futures contracts as a hedge to modify the duration of the portfolio holdings, while maintaining a tax exempt income stream. As of February 28, 1999, the Funds had no outstanding futures contracts. E. Federal income taxes -- Each Fund is treated as a separate taxable entity for Federal income tax purposes. The 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, the Fund intends to make distributions as required to avoid excise taxes. Accordingly, no provision for Federal income or excise tax is necessary. F. Distributions to shareholders -- Dividends are declared daily and distributed in the form of additional shares of the Fund or, at the election of the shareholder, in cash (subject to the policies of the Shareholder Servicing Agent) on the last business day of the month. 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 will 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. G. Allocation of income and expenses -- Expenses directly attributable to a Fund are charged to that Fund; expenses directly attributable to a particular class are charged directly to such class, other expenses are allocated proportionately among each Fund within the Trust in relation to the net assets of each Fund or on another reasonable basis. In calculating net asset value per share of each class investment income, realized and unrealized gains and losses and expenses other than class specific expenses (such as transfer agent), 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. Fees and Other Transactions with Affiliates A. Investment advisory fee -- Pursuant to separate Investment Advisory Agreements, The Chase Manhattan Bank, ("Chase" or "Advisor" ) acts as the investment adviser to the Funds. Chase is a direct wholly-owned subsidiary of The Chase Manhattan Corporation. As investment adviser, Chase supervises the investments of the Funds and for such services is paid a fee. The fee is accrued daily and paid monthly at an annual rate equal to 0.30% of each Fund's average daily net assets. The Adviser voluntarily waived all or a portion of its fees as outlined in Note 2.E. below. Chase Asset Management, Inc. ("CAM"), a registered investment adviser, is the sub- investment adviser to each Fund, pursuant to a Sub-Investment Advisory Agreement between CAM and Chase. CAM 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 0.15% of each Fund's average daily net assets. B. Shareholder servicing fees -- The Trust has adopted an Administrative Services Plan which, among other things, provides that the Trust on behalf of the Funds may obtain the services of one or more Shareholder Servicing Agents. For its services, each Shareholder Servicing Agent receives a fee. The fee is computed daily and paid monthly at an annual rate of 0.25% of the average daily net assets of each Fund. 33 Chase Vista Funds Notes to Financial Statements (continued) (unaudited) - -------------------------------------------------------------------------------- Chase and certain affiliates are the only Shareholder Servicing Agents. The Shareholder Servicing Agents voluntarily waived all or a portion of their fees as outlined in Note 2.E. below. C. Distribution and Sub-administration fees -- Pursuant to a Distribution and Sub- administration Agreement, Vista Fund Distributors, Inc. ("VFD" or the "Distributor"), a wholly-owned subsidiary of the BISYS Group Inc. ("BISYS"), acts as the Trust's exclusive underwriter and promotes and arranges for the sale of each Fund's shares. In addition, the Distributor provides certain sub-administration services to the Trust, including providing officers, clerical staff and office space for an annual fee, computed daily and paid monthly, of 0.05% of the average daily net assets of each Fund. The Trustees have adopted Distribution Plans (the "Distribution Plans") for Class A for all Funds and Class B for CVTFI and CVNYTFI in accordance with Rule 12b-1 under the 1940 Act. The Distribution Plans provide that each Fund shall pay distribution fees at annual rates not to exceed 0.25% of each Fund's average daily net assets for Class A Shares and 0.75% for Class B Shares. The Distributor voluntarily waived all or a portion of distribution fees as outlined in Note 2.E. below. D. Administration fee -- Pursuant to an Administration Agreement, Chase (the "Administrator") provides certain administration services to the Trust at a fee computed at an annual rate equal to 0.10% of the respective Fund's average daily net assets. The Administrator voluntarily waived all or a portion of its administration fees as outlined in Note 2.E. below. E. Waivers of fees -- For the six month period ended February 28, 1999, the Adviser, Administrator, Shareholder Servicing Agents and Distributor voluntarily waived fees for each of the Funds as follows (amounts in thousands):
CVTFI CVNYTFI CVCITF ------- --------- ------- Investment Advisory ........... $ 75 $ 32 $ 36 Administration ................ -- -- 7 Shareholder Servicing ......... 41 77 30 Distribution .................. 73 138 30 ---- ---- ---- $189 $247 $103 ==== ==== ====
F. Other -- Certain officers of the Trust are officers of VFD or of its parent corporation, BISYS. Chase provides portfolio accounting and custody services for the Funds. Compensation for such services are presented in the Statement of Operations as custodian fees. 3. Investment Transactions -- The cost of purchases and proceeds from sales of investments (excluding short-term investments) were as follows (amounts in thousands):
CVTFI CVNYTFI CVCITF ---------- --------- ---------- Purchases ......... $35,323 $47,690 $11,556 Sales ............. 43,163 42,522 10,952
34 Chase Vista Funds Notes to Financial Statements (continued) (unaudited) - -------------------------------------------------------------------------------- 4. Federal Income Tax Matters -- For Federal income tax purposes, the cost and unrealized appreciation/(depreciation) in value of the investment securities at February 28, 1999, are as follows (amounts in thousands):
CVTFI CVNYTFI CVCITF ---------- ----------- ------------- Aggregate cost ........................ $70,829 $120,894 $23,806 ------- -------- ------- Gross unrealized appreciation ......... $ 3,308 $ 6,030 $ 896 Gross unrealized depreciation ......... (30) (114) (1) ------- -------- ------- Net unrealized appreciation/ (depreciation) ....................... $ 3,278 $ 5,916 $ 895 ======= ======== =======
5. Transactions in Shares of Beneficial Interest -- Transactions in Shares of Beneficial Interest were as follows (amounts in thousands):
Tax Free Income Fund ------------------------------------------------- Class A ------------------------------------------------- 09/01/98 Through 02/28/99 Year Ended 8/31/98 ------------------------ ------------------------ Amount Shares Amount Shares ------------ ----------- ------------ ----------- Shares sold ..................... $ 26,098 2,026 $ 38,661 3,059 Shares issued in reinvestment of distributions .............. 873 68 1,779 140 Shares redeemed ................. (27,833) (2,160) (45,007) (3,560) --------- ------ --------- ------ Net increase (decrease) in Trust shares outstanding ...... $ (862) (66) $ (4,567) (361) ========= ====== ========= ======
Tax Free Income Fund ------------------------------------------ Class B ------------------------------------------ 09/01/98 Through 02/28/99 Year Ended 8/31/98 -------------------- --------------------- Amount Shares Amount Shares ----------- -------- ----------- --------- Shares sold ..................... $ 2,293 178 $ 3,265 259 Shares issued in reinvestment of distributions .............. 186 14 362 29 Shares redeemed ................. (3,103) (242) (2,473) (197) -------- ---- -------- ---- Net increase (decrease) in Trust shares outstanding ...... $ (624) (50) $ 1,154 91 ======== ==== ======== ====
New York Tax Free Income Fund ------------------------------------------------- Class A ------------------------------------------------- 09/01/98 Through 02/28/99 Year Ended 8/31/98 ------------------------ ------------------------ Amount Shares Amount Shares ------------ ----------- ------------ ----------- Shares sold ..................... $ 25,601 2,115 $ 45,437 3,787 Shares issued in reinvestment of distributions .............. 2,724 224 4,132 344 Shares redeemed ................. (24,630) (2,031) (25,061) (2,084) --------- ------ --------- ------ Net increase (decrease) in Trust shares outstanding ...... $ 3,695 308 $ 24,508 2,047 ========= ====== ========= ======
35 Chase Vista Funds Notes to Financial Statements (continued) (unaudited) - --------------------------------------------------------------------------------
New York Tax Free Income Fund ------------------------------------------ Class B ------------------------------------------ 09/01/98 Through 02/28/99 Year Ended 8/31/98 -------------------- --------------------- Amount Shares Amount Shares ----------- -------- ----------- --------- Shares sold ..................... $ 1,788 148 $ 2,898 242 Shares issued in reinvestment of distributions .............. 294 24 498 42 Shares redeemed ................. (1,565) (129) (2,565) (214) -------- ---- -------- ---- Net increase (decrease) in Trust shares outstanding ...... $ 517 43 $ 831 70 ======== ==== ======== ====
Vista California Intermediate Tax Free Fund ------------------------------------------- 09/01/98 Through 02/28/99 Year Ended 08/31/98 -------------------- --------------------- Amount Shares Amount Shares ----------- -------- ----------- --------- Shares sold ..................... $ 2,992 291 $ 2,222 219 Shares issued in reinvestment of distributions .............. 251 24 564 56 Shares redeemed ................. (2,139) (207) (4,850) (478) -------- ---- -------- ---- Net increase (decrease) in Trust shares outstanding ...... $ 1,104 108 $ (2,064) (203) ======== ==== ======== ====
6. Concentration of Credit Risk -- CVTFI, CVNYTFI and CVCITF invest substantially all of their assets in a diversified portfolio of debt obligations issued by states, territories and possessions of the United States and by the District of Columbia, and by their political subdivisions and duly constituted authorities, CVNYTFI and CVCITF primarily investing in issuers in the States of New York and California, respectively. As of February 28, 1999, CVTFI invested approximately 17.6% of its assets in issuers in New York State. The issuer's abilities to meet their obligations may be affected by economic or political developments in a specific state or region. 7. Trustee Compensation -- The Funds have adopted an unfunded noncontributory defined benefit pension plan covering all independent trustees of the Funds who will have served as an independent trustee for at least five years at the time of retirement. Benefits under this plan are based on compensation and years of service. Pension expenses for the six-month period ended February 28, 1999, included in Trustees Fees and Expenses in the Statement of Operations, and accrued pension liability included in other accrued liabilities in the Statement of Assets and Liabilities were as follows (amounts in thousands):
Accrued Pension Pension Expenses Liability ---------- ---------- CVTFI ........... $ 0.7 $ 7.0 CVNYTFI ......... 1.2 9.5 CVCITF .......... 0.2 2.3
8. Bank Borrowings -- The Funds may borrow money for temporary or emergency purposes. Any borrowings representing more than 5% of a Fund's total assets must be repaid before the Fund may make additional investments. The Funds have entered into an agreement, enabling them to participate with other Chase Vista Funds in an unsecured line of credit with a syndicate of banks, which permits borrowings up to $350 million, collectively. Interest is charged to each fund based on its borrowings at an annual rate equal to the sum of the Federal Funds Rate plus 0.35%. The Funds also pay a commitment fee of 0.075% per annum on the average daily amount of the available commitment, which is allocated on a pro-rate basis to the funds. The commitment fee is included in Other expenses on the Statement of Operations. Borrowings are payable on demand. The Funds had no borrowings outstanding at February 28, 1999. 36 Chase Vista Funds Financial Highlights (unaudited) - --------------------------------------------------------------------------------
Tax Free Income Fund ---------------------------------------------------------------------- Class A ---------------------------------------------------------------------- 09/01/98 Year Ended August 31, 11/1/93 Through ----------------------------------------------- Through 02/28/99 1998 1997 1996 1995 8/31/94++ ---------- ----------- ----------- ----------- ----------- ----------- Per Share Operating Performance Net Asset Value, Beginning of Period ..... $ 12.89 $ 12.32 $ 11.84 $ 11.85 $ 11.70 $ 12.70 ------- ------- ------- ------- ------- -------- Income from Investment Operations: Net Investment Income .................. 0.28 0.56 0.58 0.58 0.58 0.48 Net Gains or Losses in Securities (both realized and unrealized) ........ ( 0.04) 0.57 0.48 ( 0.01) 0.15 ( 0.85) -------- ------- ------- -------- ------- -------- Total from Investment Operations ............................ 0.24 1.13 1.06 0.57 0.73 ( 0.37) -------- ------- ------- -------- ------- -------- Less Distributions: Dividends from Net Investment Income ................................ 0.28 0.56 0.58 0.58 0.58 0.48 Distributions from Capital Gains -- -- -- -- -- 0.15 ------- ------- ------- ------- ------- -------- Total Distributions .................... 0.28 0.56 0.58 0.58 0.58 0.63 ------- ------- ------- ------- ------- -------- Net Asset Value, End of Period ........... $ 12.85 $ 12.89 $ 12.32 $ 11.84 $ 11.85 $ 11.70 ======= ======= ======= ======= ======= ======== Total Return (1) ......................... 1.91% 9.38% 9.14% 4.88% 6.53% ( 2.99%) Ratios/Supplemental Data: Net Assets, End of Period (millions) ..... $ 60 $ 61 $ 63 $ 70 $ 89 $ 98 Ratios to Average Net Assets#: Expenses ................................ 0.75% 0.80% 0.90% 0.90% 0.85% 0.58% Net Investment Income ................... 4.44% 4.44% 4.78% 4.83% 5.07% 4.75% Expenses Without Waivers and Assumption of Expenses ................. 1.34% 1.31% 1.29% 1.46% 1.47% 1.29% Net Investment Income Without Waivers and Assumption of Expenses ........................... 3.85% 3.93% 4.39% 4.27% 4.45% 4.04% Portfolio turnover rate .................. 49% 172% 147% 210% 233% 258% Tax Free Income Fund ------------------------------------------------------------------------------- Class B ------------------------------------------------------------------------------- 09/01/98 Year Ended August 31, 11/04/93* Through --------------------------------------------------- Through 02/28/99 1998 1997 1996 1995 8/31/94++ ----------- ------------ ------------ ------------ ------------ ------------ Per Share Operating Performance Net Asset Value, Beginning of Period ..... $ 12.82 $ 12.25 $ 11.76 $ 11.77 $ 11.65 $ 12.51 -------- -------- -------- -------- -------- --------- Income from Investment Operations: Net Investment Income .................. 0.23 0.45 0.48 0.49 0.50 0.42 Net Gains or Losses in Securities (both realized and unrealized) ........ (0.04) 0.57 0.48 (0.01) 0.14 (0.71) -------- -------- -------- -------- -------- --------- Total from Investment Operations ............................ 0.19 1.02 0.96 0.48 0.64 (0.29) -------- -------- -------- -------- -------- --------- Less Distributions: Dividends from Net Investment Income ................................ 0.23 0.45 0.47 0.49 0.52 0.42 Distributions from Capital Gains -- -- -- -- -- 0.15 --------- --------- --------- --------- --------- --------- Total Distributions .................... 0.23 0.45 0.47 0.49 0.52 0.57 --------- --------- --------- --------- --------- --------- Net Asset Value, End of Period ........... $ 12.78 $ 12.82 $ 12.25 $ 11.76 $ 11.77 $ 11.65 ========= ========= ========= ========= ========= ========= Total Return (1) ......................... 1.46% 8.45% 8.30% 4.10% 5.70% (2.35%) Ratios/Supplemental Data: Net Assets, End of Period (millions) ..... $ 15 $ 15 $ 14 $ 14 $ 14 $ 12 Ratios to Average Net Assets#: Expenses ................................ 1.64% 1.64% 1.64% 1.65% 1.61% 1.47% Net Investment Income ................... 3.55% 3.60% 4.04% 4.08% 4.31% 3.95% Expenses Without Waivers and Assumption of Expenses ................. 1.84% 1.81% 1.79% 1.95% 1.97% 1.81% Net Investment Income Without Waivers and Assumption of Expenses ........................... 3.35% 3.43% 3.89% 3.78% 3.95% 3.61% Portfolio turnover rate .................. 49% 172% 147% 210% 233% 258%
- ------- (1) Total return figures do not include the effect of any sales load. # Short periods have been annualized. * Commencement of offering of class of shares. ++ In 1994 the Fund changed its fiscal year-end from October 31 to August 31. See notes to financial statements. 37 Chase Vista Funds Financial Highlights (continued) (unaudited) - --------------------------------------------------------------------------------
New York Tax Free Income Fund ---------------------------------------------------------------------- Class A ---------------------------------------------------------------------- 09/01/98 Year Ended August 31, 11/1/93 Through ----------------------------------------------- Through 2/28/99 1998 1997 1996 1995 8/31/94++ ---------- ----------- ----------- ----------- ----------- ----------- Per Share Operating Performance Net Asset Value, Beginning of Period ..... $ 12.18 $ 11.80 $ 11.39 $ 11.47 $ 11.30 $ 12.27 ------- ------- ------- ------- ------- -------- Income from Investment Operations: Net Investment Income .................. 0.26 0.54 0.56 0.56 0.57 0.47 Net Gains or Losses on Securities (both realized and unrealized) ........ ( 0.02) 0.50 0.43 ( 0.08) 0.17 ( 0.69) -------- ------- ------- -------- ------- -------- Total from Investment Operations 0.24 1.04 0.99 0.48 0.74 ( 0.22) -------- ------- ------- -------- ------- -------- Less Distributions: Dividends from Net Investment Income ................................ 0.26 0.54 0.56 0.56 0.57 0.47 Distributions from Capital Gains 0.11 0.12 0.02 -- -- 0.28 -------- ------- ------- -------- -------- -------- Total Distributions .................... 0.37 0.66 0.58 0.56 0.57 0.75 -------- ------- ------- -------- -------- -------- Net Asset Value, End of Period ........... $ 12.05 $ 12.18 $ 11.80 $ 11.39 $ 11.47 $ 11.30 ======== ======= ======= ======== ======== ======== Total Return (1) ......................... 1.99% 9.03% 8.85% 4.20% 6.82% ( 1.81%) Ratios/Supplemental Data: Net Assets, End of Period (millions) ..... $ 113 $ 111 $ 83 $ 96 $ 104 $ 103 Ratios to Average Net Assets#: Expenses ................................ 0.75% 0.79% 0.90% 0.90% 0.85% 0.76% Net Investment Income ................... 4.37% 4.52% 4.77% 4.76% 5.11% 4.89% Expenses Without Waivers and Assumption of Expenses ................. 1.19% 1.21% 1.18% 1.27% 1.37% 1.25% Net Investment Income Without Waivers and Assumption of Expenses ........................... 3.93% 4.10% 4.49% 4.39% 4.59% 4.40% Portfolio turnover rate .................. 37% 91% 107% 156% 122% 162% New York Tax Free Income Fund ------------------------------------------------------------------------------- Class B ------------------------------------------------------------------------------- 9/1/98 Year Ended August 31, 11/04/93* Through --------------------------------------------------- Through 2/28/99 1998 1997 1996 1995 8/31/94++ ----------- ------------ ------------ ------------ ------------ ------------ Per Share Operating Performance Net Asset Value, Beginning of Period ..... 12.16 $ 11.76 $ 11.33 $ 11.41 $ 11.27 $ 12.11 ------- -------- -------- -------- -------- --------- Income from Investment Operations: Net Investment Income .................. 0.21 0.44 0.46 0.47 0.49 0.42 Net Gains or Losses on Securities (both realized and unrealized) ........ (0.03) 0.51 0.43 (0.09) 0.16 (0.54) ------- -------- -------- -------- -------- --------- Total from Investment Operations 0.18 0.95 0.89 0.38 0.65 (0.12) ------- -------- -------- -------- -------- --------- Less Distributions: Dividends from Net Investment Income ................................ 0.21 0.43 0.44 0.46 0.51 0.43 Distributions from Capital Gains 0.11 0.12 0.02 -- -- 0.29 ------- -------- -------- --------- --------- --------- Total Distributions .................... 0.32 0.55 0.46 0.46 0.51 0.72 ------- -------- -------- --------- --------- --------- Net Asset Value, End of Period ........... $ 12.02 $ 12.16 $ 11.76 $ 11.33 $ 11.41 $ 11.27 ======== ========= ======== ========= ========= ========= Total Return (1) ......................... 1.46% 8.27% 8.03% 3.46% 5.99% (1.11%) Ratios/Supplemental Data: Net Assets, End of Period (millions) ..... $ 15 $ 15 $ 14 $ 14 $ 11 $ 7 Ratios to Average Net Assets#: Expenses ................................ 1.64% 1.64% 1.64% 1.65% 1.61% 1.51% Net Investment Income ................... 3.48% 3.68% 4.03% 4.01% 4.35% 4.28% Expenses Without Waivers and Assumption of Expenses ................. 1.69% 1.71% 1.68% 1.76% 1.87% 1.76% Net Investment Income Without Waivers and Assumption of Expenses ........................... 3.43% 3.61% 3.99% 3.90% 4.09% 4.03% Portfolio turnover rate .................. 37% 91% 107% 156% 122% 162%
- ------- (1) Total return figures do not include the effect of any sales load. # Short periods have been annualized. * Commencement of offering of class of shares. ++ In 1994 the Fund changed its fiscal year-end from October 31 to August 31. See notes to financial statements. 38 Chase Vista Funds Financial Highlights (continued) (unaudited) - --------------------------------------------------------------------------------
California Intermediate Tax Free Fund --------------------------------- 09/01/98 Year Ended August 31, Through ---------------------- 02/28/99 1998 1997 ---------- ----------- ---------- Per Share Operating Performance Net Asset Value, Beginning of Period ..................................... $ 10.29 $ 10.07 $ 9.81 ------- ------- ------- Income from Investment Operations: Net Investment Income .................................................. 0.24 0.45 0.46 Net Gains or Losses on Securities (both realized and unrealized) ....... 0.05 0.32 0.26 ------- ------- ------- Total from Investment Operations ....................................... 0.29 0.77 0.72 ------- ------- ------- Less Distributions: Dividends from Net Investment Income ................................... 0.24 0.45 0.33 Distributions from Capital Gains ....................................... 0.13 0.10 0.13 ------- ------- ------- Total Distributions .................................................... 0.37 0.55 0.46 ------- ------- ------- Net Asset Value, End of Period ........................................... $ 10.21 $ 10.29 $ 10.07 ======= ======= ======= Total Return (1) ......................................................... 2.49% 7.81% 7.46% Ratios/Supplemental Data: Net Assets, End of Period (millions) ..................................... $ 25 $ 24 $ 26 Ratios to Average Net Assets#: Expenses ................................................................ 0.60% 0.60% 0.60% Net Investment Income ................................................... 3.98% 4.38% 4.65% Expenses Without Waivers and Assumption of Expenses ..................... 1.45% 1.44% 1.33% Net Investment Income Without Waivers and Assumption of Expenses ........ 3.13% 3.54% 3.92% Portfolio turnover rate .................................................. 50% 44% 66% California Intermediate Tax Free Fund ---------------------------------- Year Ended August 31, 11/1/94 --------------------- Through 1996 1995 8/31/94++ ---------- ---------- ------------ Per Share Operating Performance Net Asset Value, Beginning of Period ..................................... $ 9.89 $ 9.69 $ 10.30 ------ ------ -------- Income from Investment Operations: Net Investment Income .................................................. 0.48 0.51 0.32 Net Gains or Losses on Securities (both realized and unrealized) ....... 0.01 0.20 ( 0.41) ------ ------ -------- Total from Investment Operations ....................................... 0.49 0.71 ( 0.09) ------ ------ -------- Less Distributions: Dividends from Net Investment Income ................................... 0.48 0.51 0.40 Distributions from Capital Gains ....................................... 0.09 -- 0.12 ------ ------- -------- Total Distributions .................................................... 0.57 0.51 0.52 ------ ------- -------- Net Asset Value, End of Period ........................................... $ 9.81 $ 9.89 $ 9.69 ====== ======= ======== Total Return (1) ......................................................... 5.00% 7.55% ( 0.86%) Ratios/Supplemental Data: Net Assets, End of Period (millions) ..................................... $ 28 $ 33 $ 36 Ratios to Average Net Assets#: Expenses ................................................................ 0.60% 0.52% 0.52% Net Investment Income ................................................... 4.77% 5.24% 4.88% Expenses Without Waivers and Assumption of Expenses ..................... 1.47% 1.40% 1.37% Net Investment Income Without Waivers and Assumption of Expenses ........ 3.90% 4.36% 4.03% Portfolio turnover rate .................................................. 188% 94% 93%
- ------- (1) Total return figures do not include the effect of any sales load. # Short periods have been annualized. ++ In 1994 the Fund changed its fiscal year-end from October 31 to August 31. See notes to financial statements. 39 -----END PRIVACY-ENHANCED MESSAGE-----