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<SEC-DOCUMENT>0000950146-99-000991.txt : 19990504
<SEC-HEADER>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
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<TEXT>
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
<PAGE>
Chase Vista Tax Free Income Fund
as of February 28, 1999
(unaudited)
Fund Facts
<TABLE>
<S> <C> <C>
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
</TABLE>
* 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
<PAGE>
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
<PAGE>
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.
<TABLE>
<CAPTION>
1 Year 5 Years 10 Years
-------------- -------------- ---------------
<S> <C> <C> <C>
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%
</TABLE>
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
<PAGE>
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
<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments February 28, 1999 (unaudited)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------------------
<S> <C> <C>
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
-------
</TABLE>
See notes to financial statements.
8
<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments February 28, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- -------------------------------------------------------------------
<S> <C> <C>
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
------
</TABLE>
See notes to financial statements.
9
<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments February 28, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
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
-------
</TABLE>
See notes to financial statements.
10
<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments February 28, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
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
-------
</TABLE>
See notes to financial statements.
11
<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments February 28, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ---------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ---------------------------------------------------------------
<S> <C> <C>
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
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
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
</TABLE>
See notes to financial statements.
12
<PAGE>
Chase Vista New York Tax Free Income Fund
as of February 28, 1999
(unaudited)
Fund Facts
<TABLE>
<S> <C> <C>
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
</TABLE>
* 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
<PAGE>
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
<PAGE>
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.
<TABLE>
<CAPTION>
1 Year 5 Years 10 Years
-------------- -------------- ---------------
<S> <C> <C> <C>
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%
</TABLE>
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
<PAGE>
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
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments February 28, 1999 (unaudited)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------
Long Term Municipal Bonds -- 96.5%
- ------------------------------------------------------------------
<S> <C> <C>
$ 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
</TABLE>
See notes to financial statements.
17
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments February 28, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ----------------------------------------------------------------
<S> <C> <C>
$ 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
</TABLE>
See notes to financial statements.
18
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments February 28, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
$ 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
</TABLE>
See notes to financial statements.
19
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments February 28, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- -------------------------------------------------------------------
<S> <C> <C>
$ 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
</TABLE>
See notes to financial statements.
20
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments February 28, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------------
<S> <C> <C>
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%
- -------------------------------------------------------------------
<CAPTION>
Shares Value
- -------------------------------------------------------------------
<S> <C> <C>
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
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
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
</TABLE>
See notes to financial statements.
21
<PAGE>
Chase Vista California Intermediate Tax Free Income Fund
as of February 28, 1999
(unaudited)
Fund Facts
<TABLE>
<S> <C>
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
</TABLE>
* 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
<PAGE>
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
<PAGE>
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.
<TABLE>
<CAPTION>
Since
1 Year 5 Years Inception (7/16/93)
------------ ------------ -------------------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge 5.67% 5.94% 5.64%
With Sales Charge* 0.91% 4.97% 4.78%
</TABLE>
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
<PAGE>
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
<PAGE>
Chase Vista California Intermediate Tax Free Fund
Portfolio of Investments February 28, 1999 (unaudited)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------------
Long Term Municipal Bonds -- 88.1%
- -------------------------------------------------------------------
<S> <C> <C>
$ 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
</TABLE>
See notes to financial statements.
26
<PAGE>
Chase Vista California Intermediate Tax Free Fund
Portfolio of Investments February 28, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- -------------------------------------------------------------------
<S> <C> <C>
$ 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
</TABLE>
See notes to financial statements.
27
<PAGE>
Chase Vista California Intermediate Tax Free Fund
Portfolio of Investments February 28, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------------
Short Term Investments -- (continued)
- -------------------------------------------------------------------
<S> <C> <C>
$ 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
- -------------------------------------------------------------------
<CAPTION>
Shares
<S> <C> <C>
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
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
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
</TABLE>
See notes to financial statements.
28
<PAGE>
Chase Vista Funds
Statement of Assets and Liabilities February 28, 1999 (unaudited)
(Amounts in Thousands, Except Per Share Amounts)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
California
New York Intermediate
Tax Free Tax Free Tax Free
Income Fund Income Fund Fund
------------- ------------- -------------
<S> <C> <C> <C>
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
======= ======== ========
</TABLE>
See notes to financial statements.
29
<PAGE>
Chase Vista Funds
Statement of Operations For the six months ended Feb. 28, 1999 (unaudited)
- --------------------------------------------------------------------------------
(Amounts in Thousands)
<TABLE>
<CAPTION>
California
New York Intermediate
Tax Free Tax Free Tax Free
Income Fund Income Fund Fund
------------- ------------- -------------
<S> <C> <C> <C>
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
======= ======= ======
</TABLE>
See notes to financial statements.
30
<PAGE>
- --------------------------------------------------------------------------------
Chase Vista Funds
Statement of Changes in Net Assets (unaudited)
(Amounts in Thousands)
See notes to financial statements.
<TABLE>
<CAPTION>
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
------------ ------------ ------------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
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
======== ======== ========= ========= ======== ========
</TABLE>
31
<PAGE>
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
<PAGE>
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
<PAGE>
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):
<TABLE>
<CAPTION>
CVTFI CVNYTFI CVCITF
------- --------- -------
<S> <C> <C> <C>
Investment Advisory ........... $ 75 $ 32 $ 36
Administration ................ -- -- 7
Shareholder Servicing ......... 41 77 30
Distribution .................. 73 138 30
---- ---- ----
$189 $247 $103
==== ==== ====
</TABLE>
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):
<TABLE>
<CAPTION>
CVTFI CVNYTFI CVCITF
---------- --------- ----------
<S> <C> <C> <C>
Purchases ......... $35,323 $47,690 $11,556
Sales ............. 43,163 42,522 10,952
</TABLE>
34
<PAGE>
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):
<TABLE>
<CAPTION>
CVTFI CVNYTFI CVCITF
---------- ----------- -------------
<S> <C> <C> <C>
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
======= ======== =======
</TABLE>
5. Transactions in Shares of Beneficial Interest -- Transactions in Shares of
Beneficial Interest were as follows (amounts in thousands):
<TABLE>
<CAPTION>
Tax Free Income Fund
-------------------------------------------------
Class A
-------------------------------------------------
09/01/98 Through
02/28/99 Year Ended 8/31/98
------------------------ ------------------------
Amount Shares Amount Shares
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
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)
========= ====== ========= ======
</TABLE>
<TABLE>
<CAPTION>
Tax Free Income Fund
------------------------------------------
Class B
------------------------------------------
09/01/98 Through
02/28/99 Year Ended 8/31/98
-------------------- ---------------------
Amount Shares Amount Shares
----------- -------- ----------- ---------
<S> <C> <C> <C> <C>
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
======== ==== ======== ====
</TABLE>
<TABLE>
<CAPTION>
New York Tax Free Income Fund
-------------------------------------------------
Class A
-------------------------------------------------
09/01/98 Through
02/28/99 Year Ended 8/31/98
------------------------ ------------------------
Amount Shares Amount Shares
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
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
========= ====== ========= ======
</TABLE>
35
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued) (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
New York Tax Free Income Fund
------------------------------------------
Class B
------------------------------------------
09/01/98 Through
02/28/99 Year Ended 8/31/98
-------------------- ---------------------
Amount Shares Amount Shares
----------- -------- ----------- ---------
<S> <C> <C> <C> <C>
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
======== ==== ======== ====
</TABLE>
<TABLE>
<CAPTION>
Vista California Intermediate Tax Free Fund
-------------------------------------------
09/01/98 Through
02/28/99 Year Ended 08/31/98
-------------------- ---------------------
Amount Shares Amount Shares
----------- -------- ----------- ---------
<S> <C> <C> <C> <C>
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)
======== ==== ======== ====
</TABLE>
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):
<TABLE>
<CAPTION>
Accrued
Pension Pension
Expenses Liability
---------- ----------
<S> <C> <C>
CVTFI ........... $ 0.7 $ 7.0
CVNYTFI ......... 1.2 9.5
CVCITF .......... 0.2 2.3
</TABLE>
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
<PAGE>
Chase Vista Funds
Financial Highlights (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
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++
---------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
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%
<CAPTION>
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++
----------- ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
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%
</TABLE>
- -------
(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
<PAGE>
Chase Vista Funds
Financial Highlights (continued) (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
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++
---------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
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%
<CAPTION>
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++
----------- ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
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%
</TABLE>
- -------
(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
<PAGE>
Chase Vista Funds
Financial Highlights (continued) (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
California Intermediate Tax Free
Fund
---------------------------------
09/01/98 Year Ended August 31,
Through ----------------------
02/28/99 1998 1997
---------- ----------- ----------
<S> <C> <C> <C>
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%
<CAPTION>
California Intermediate Tax Free
Fund
----------------------------------
Year Ended August 31, 11/1/94
--------------------- Through
1996 1995 8/31/94++
---------- ---------- ------------
<S> <C> <C> <C>
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%
</TABLE>
- -------
(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
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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