-----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, HJdzM7hJ+E9i4dUoKQYBrQiNHurarVSj+GazwL4T8xanWWKpK0Mh8SgnuU61de4y UMpzO7uAMtrrNL+zYXSNtg== 0000950146-00-000517.txt : 20000505 0000950146-00-000517.hdr.sgml : 20000505 ACCESSION NUMBER: 0000950146-00-000517 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000229 FILED AS OF DATE: 20000504 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: 618930 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 FEBRUARY 29, 2000 (UNAUDITED) Chase Vista Tax Free Funds SEMI-ANNUAL REPORT TAX FREE INCOME FUND NEW YORK TAX FREE INCOME FUND CALIFORNIA INTERMEDIATE TAX FREE FUND [CHASE LOGO] THE RIGHT RELATIONSHIP IS EVERYTHING.(R) SATF-3-400 - -------------------------------------------------------------------------------- Contents - -------------------------------------------------------------------------------- Chairman's Letter 1 - -------------------------------------------------------------------------------- Chase Vista Tax Free Income Fund 2 Fund Commentary - -------------------------------------------------------------------------------- Chase Vista New York Tax Free Income Fund 4 Fund Commentary - -------------------------------------------------------------------------------- Chase Vista California Intermediate Tax Free Fund 6 Fund Commentary - -------------------------------------------------------------------------------- Portfolio of Investments 8 - -------------------------------------------------------------------------------- Financial Statements 16 - -------------------------------------------------------------------------------- Notes to Financial Statements 22
Highlights o The yield on the average AAA-rated 30-year municipal bond stood at 5.70% on September 1, 1999 and at 5.90% on February 29, 2000. o Anticipation of Y2K issues had a significant impact on the municipal bond markets during the latter part of 1999, driving the prices of municipal bonds lower and yields higher. o Yields subsequently fell, and prices rose, due to a 39.5% dropoff in new municipal bond issuance in the first two months of 2000. ----------------------------------------------------------- | | | | NOT FDIC INSURED | May lose value / No bank guarantee | | | | ----------------------------------------------------------- Chase Vista Funds are distributed by Vista Fund Distributors, Inc. - -------------------------------------------------------------------------------- CHASE VISTA TAX FREE FUNDS - -------------------------------------------------------------------------------- Chairman's Letter April 10, 2000 Dear Shareholder: We are pleased to present this semi-annual report for Chase Vista Tax Free Funds for the six-month period ended February 29, 2000. Inside, you will find information on the performance of each Fund along with a report from the portfolio management team. U.S. Fixed Income Markets React to Strong Economy Economic growth in the United States continued unabated during the reporting period, causing the Fed to continue its policy of raising short-term interest rates in an effort to take the potentially-inflationary steam out of the economy. Although inflation remained relatively tame, the Fed's policy helped create negative sentiment in fixed income markets in the latter part of 1999, and this was reflected in lower bond prices. While these concerns didn't change in the first two months of 2000, the technical underpinnings of the fixed income markets did, undergoing a serious transformation when the U.S. Treasury announced that it would accelerate its program of repurchasing longer-dated Treasuries. The resulting impression of future scarcity caused a sharp rally in the long-term Treasury market, driving yields on the 30-year bond--which had been approaching 7%--down towards 6%. Supply and Y2K Issues Drive Municipals Market Beyond the fundamental issues posed by the strong economy, inflationary fears and the Treasury's buyback program, municipal bond prices were driven by a variety of factors exclusive to the tax-free market. These included a rapidly-changing supply picture under which there was a bulge of new issues at the end of October and very little new supply through the end of 1999 and into 2000. Two additional factors created a rather illiquid market environment in late 1999. The first was concern about Y2K, which left dealers unwilling to carry municipal bonds over the year-end period. Also, a significant number of individuals decided to offset capital gains in the stock market by selling municipals. On behalf of the management team, and everyone at Chase Vista Funds, I thank you for your continued investment with us. We look forward to serving your needs for many years to come. Sincerely yours, /s/ Fergus Reid Fergus Reid Chairman 1 - -------------------------------------------------------------------------------- CHASE VISTA TAX FREE INCOME FUND As of February 29, 2000 (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 -0.87% (Class A Shares, without sales charges) for the six-month period ended February 29, 2000. This compares to a return of -1.30% for the Lipper General Municipal Debt Funds Average and -0.02% for the unmanaged Lehman Municipal Bond Index. How the Fund Was Managed The Fund was able to outperform its peer group thanks to a strategy of active management and a disciplined approach during periods of market volatility. Early in the period, the management team allowed the Fund's duration to shorten relative to its peer group, and this proved positive for performance in a rising interest-rate environment. After having taken advantage of heavy supply in New York in the fall, the Fund maintained its overweight position throughout 1999 and also emphasized California issues. With an eye towards the inevitable period when interest rates begin to decline, the management team also pursued the opportunity to move into non-callable bonds when they became relatively cheap. As supply began to shrink dramatically in early 2000, the Fund continued to outperform as the better structured, non-callable bonds benefited from an influx of corporate purchasers looking for longer-dated maturities in the wake of the Treasury's buyback program. With the low supply causing the yield difference between higher and lower quality municipal securities to compress--meaning that investors were being paid very little in terms of extra yield for taking on higher credit risk--the management team maintained its discipline, focusing on higher-quality securities and avoiding joining the rush to purchase lower-quality securities. Some of the gains from the spread compression and New York/California overweights, however, were offset by a slightly-short duration compared to the peer group in a rallying market. Where the Fund May Be Headed Moving forward, the management team intends to continue to take advantage of the compression in quality spreads by selling lower-quality securities into the strong retail market. With the proceeds, it has begun to increase exposure to higher quality securities. The management team does not foresee any noticeable decline in municipal prices in the near future, but given the presence of non-traditional buyers and the strong retail preference for liquidity, the focus will be on simple securities from well-known issuers as opposed to more exotic structures. 2 CHASE VISTA TAX FREE INCOME FUND As of February 29, 2000 (Unaudited) Average Annual Total Returns
- ------------------------------------------------------------------ 1 Year 5 Years 10 Years - ------------------------------------------------------------------ Class A Shares Without Sales Charge -4.01% 5.05% 7.12% With Sales Charge -8.33% 4.09% 6.63% - ------------------------------------------------------------------ Class B Shares Without CDSC -4.83% 4.19% 6.55% With CDSC -9.41% 3.85% 6.55% - ------------------------------------------------------------------
10-Year Performance [Start Mountain Chart Data]
Chase Vista Lipper Tax-Free General Income Lehman Muni Muni Debt Fund Bond Index Funds Avg. 2/90 9550 10000 10000 2/91 10439 10921 10811 2/92 11719 12013 11910 2/93 14038 13668 13609 2/94 14798 14424 14328 2/95 14849 14696 14412 2/96 16316 16320 15833 2/97 17167 17219 16544 2/98 18736 18796 18043 2/99 19786 19952 18921 2/00 19000 19534 18048
[End Mountain Chart Data] Source: Lipper Analytical Services. Past performance is not indicative of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Sales charge for Class A Shares: 4.50%. Class B Shares CDSC: 5% for the one-year period, 2% for the five-year period and 0% for the 10-year period. The Fund commenced operations on 9/8/87. Class B Shares were introduced on 11/4/93. Performance for Class B Shares is based on historical expenses of the predecessor Class A Shares, which are lower than the expenses for Class B Shares. The Fund is currently waiving fees. The waiver may be terminated, which would reduce performance. The graph illustrates comparative performance of $10,000 (Class A), assumes reinvestment of all distributions and includes a 4.50% sales charge. Performance of the unmanaged average and indices does not include sales charges, but includes reinvestment of all distributions. The Lehman Municipal Bond Index is a broad-based index that replicates the long-term, investment grade tax-exempt bond market. The Lipper Average consists of funds that invest in municipal bonds. Investors cannot invest directly in an index. Capital gains are subject to federal income tax, 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. 3 - -------------------------------------------------------------------------------- CHASE VISTA NEW YORK TAX FREE INCOME FUND As of February 29, 2000 (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 -1.31% (Class A Shares, without sales charges) for the six month period ended February 29, 2000. This compares to a return of -1.26% for the Lipper New York Tax Exempt Municipal Debt Funds Average and -0.02% for the unmanaged Lehman Municipal Bond Index. How the Fund Was Managed In the final four months of 1999, the Fund used a strategy of shortening its relative duration--and therefore its interest rate sensitivity--by actively swapping. The Fund also added to its high yield positions as quality spreads widened in the wake of heavy New York supply and increased its exposure to non-callable select hospital issues. Several factors had a negative impact on performance in the first two months of 2000. First of all, in order to meet redemptions from investors looking to offset equity market capital gains, the management team was forced in the last two months of 1999 to sell into the rather illiquid market caused by dealers' Y2K-related unwillingness to hold municipals during the year-end period. As credit spreads began to tighten in the new year, the management team did not want to chase the move caused by heavy demand and diminishing New York supply and, therefore, the Fund was left holding excess cash raised at year-end as the market rallied. However, other non-callable issues held by the Fund did quite well as non-traditional corporate buyers looking for longer-dated securities showed a preference for these bonds. Where the Fund May Be Headed Moving forward, the management team intends to continue to take advantage of the compression in quality spreads by selling lower-quality securities into the strong retail market. The management team does not foresee any noticeable decline in municipal prices in the near future, but given the presence of non-traditional buyers and the strong retail preference for liquidity, the focus will be on simple securities from well-known issuers as opposed to more complex structures. 4 CHASE VISTA NEW YORK TAX FREE INCOME FUND As of February 29, 2000 (Unaudited) Average Annual Total Returns
1 Year 5 Years 10 Years - ------------------------------------------------------------------ Class A Shares Without Sales Charge -4.78% 4.79% 6.55% With Sales Charge -9.07% 3.83% 6.06% - ------------------------------------------------------------------ Class B Shares Without CDSC -5.65% 3.93% 6.01% With CDSC -10.18% 3.59% 6.01% - ------------------------------------------------------------------
10-Year Performance [Start Mountain Chart Data]
Chase Vista New York Lipper Tax-Free New York Income Lehman Muni Tax Exempt Muni Fund Bond Index Debt Funds Average 2/90 9550 10000 10000 2/91 10349 10921 10770 2/92 11447 12013 11942 2/93 13448 13668 13761 2/94 14160 14424 14518 2/95 14244 14696 14442 2/96 15614 16320 15836 2/97 16397 17219 16538 2/98 17941 18796 18010 2/99 18903 19952 18945 2/00 18007 19534 18051
[End Mountain Chart Data] Source: Lipper Analytical Services. Past performance is not indicative of future results. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Sales charge for Class A Shares: 4.50%. Class B Shares CDSC: 5% for the one-year period, 2% for the five-year period and 0% for the 10-period The Fund commenced operations on 9/8/87. Class B Shares were introduced on 11/4/93. Performance for Class B Shares is based on historical expenses of the predecessor Class A Shares, which are lower than the expenses for Class B Shares. The Fund is currently waiving fees. The waiver may be terminated, which would reduce performance. The graph illustrates comparative performance of $10,000 (Class A), assumes reinvestment of all distributions and includes a 4.50% sales charge. Performance of the unmanaged average and indices does not include sales charges, but includes reinvestment of all distributions. The Lehman Municipal Bond Index is a broad-based index that replicates the long-term, investment grade tax-exempt bond market. The Lipper Average consists of funds that invest in New York tax-exempt municipal bonds. Investors cannot invest directly in an index. Capital gains are subject to federal income tax, 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. 5 - -------------------------------------------------------------------------------- CHASE VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND As of February 29, 2000 (Unaudited) - -------------------------------------------------------------------------------- How the Fund Performed Chase Vista California Intermediate Tax Free Fund, which seeks to provide double tax-exempt income through a portfolio of higher-quality, intermediate-term municipal bonds, had a total return of 1.33% (Class A Shares, without sales charges) for the six month period ended February 29, 2000. This compares to a return of 0.49% for the Lipper California Intermediate Municipal Debt Funds Average, -0.02% for the unmanaged Lehman Municipal Bond Index and 0.99% for the Lehman California Intermediate Municipal Bond Index. How the Fund Was Managed In one of the best-performing states for municipal bonds, the Fund was able to outperform as several key management decisions paid off. Early in the period, the management team allowed the Fund's duration to shorten relative to its peer group, and this proved positive for performance in a rising interest rate environment. By the beginning of 2000, the Fund had already begun lengthening duration as the management team took advantage of market illiquidity in advance of Y2K to purchase securities in the 10-15 year range. Bonds in this portion of the yield curve became the focus of attention for non-traditional insurance buyers in early 2000, thereby supporting the strong performance. With a supply drought taking hold of the market, the management team then began to sell small pieces into the retail market, taking advantage of a strong retail bid. Specifically targeted for sales were high yield issues which had benefited from the sharp compression in credit quality spreads. Where the Fund May Be Headed In the supply-poor, demand-rich California market, the management team has begun investing cash in higher-quality bonds issued by Puerto Rico and the U.S. Virgin Islands. The management team does not foresee any noticeable decline in municipal prices in the near future, but given the presence of non-traditional buyers and the strong retail preference for liquidity, the focus will be on simple securities from well-known issuers as opposed to more exotic structures. 6 CHASE VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND As of February 29, 2000 (Unaudited) Average Annual Total Returns
Since Inception 1 Year 5 Years 7/16/93 - ---------------------------------------------------------------- Class A Shares Without Sales Charge -0.85% 5.35% 4.63% With Sales Charge -5.31% 4.38% 3.91% - ----------------------------------------------------------------
Life of Fund Performance [Start Mountain Chart Data]
Chase Vista Lehman Lipper California California California Intermediate Intermediate Intermediate Tax Lehman Muni Muni Muni Debt Free Fund Bond Index Bond Index Funds Avg. 7/93 9550 10000 10000 10000 2/94 9740 10296 10306 10287 2/95 9936 10490 10569 10396 2/96 10885 11649 11695 11346 2/97 11426 12291 12321 11835 2/98 12300 13417 13279 12706 2/99 12997 14242 14093 13358 2/00 12905 13944 14069 13207
[End Mountain Chart Data] Source: Lipper Analytical Services. Past performance is not indicative of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Sales charge for Class A Shares: 4.50%. The graph illustrates comparative performance of $10,000 (Class A), assumes reinvestment of all distributions and includes a 4.50% sales charge. Performance of the unmanaged average and indices does not include sales charges, but includes reinvestment of all distributions. The Lehman Municipal Bond Index is a broad-based index that replicates the long-term, investment grade tax-exempt bond market. The Lehman California Intermediate Municipal Bond Index replicates the California intermediate-term, investment grade tax-exempt bond market. The Lipper Average consists of funds that invest in California intermediate-term, investment-grade municipal bonds. Investors cannot invest directly in an index. Capital gains are subject to federal income tax, 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. 7 - -------------------------------------------------------------------------------- CHASE VISTA TAX FREE INCOME FUND Portfolio of Investments - -------------------------------------------------------------------------------- As of February 29, 2000 (unaudited) (Amounts in thousands) Principal Amount Issuer Value - --------------------------------------------------------------------------------- Long-Term Municipal Securities -- 97.0% - --------------------------------------------------------------------------------- Alabama -- 11.6% $7,000 Alabama State, Ser. A, GO, 5.50%, 10/01/01 $7,102 California -- 5.2% 150 California Educational Facilities Authority, Pepperdine University, Rev., +, -, 7.20%, 11/01/00 156 150 California State, Public Works Board, Regents of The University of California, Ser. A, Rev., -, 7.00%, 09/01/00 155 2,800 South Orange County, California, Public Financing Authority, Special Tax, Senior Lien, Ser. A, +, 6.20%, 09/01/13 2,914 ------ 3,225 Connecticut -- 2.3% 1,700 Mashantucket Western Pequot Tribe, Connecticut, Special Obligation, Sub.-Ser. A, Rev., 5.50%, 09/01/28 1,446 Georgia -- 5.9% 2,000 Fulton County, Georgia, School District, GO, 5.25%, 01/01/15 1,924 2,000 Georgia State, Ser. C, GO, 4.00%, 07/01/12 1,739 ------ 3,663 Illinois -- 0.1% 75 Chicago, Illinois, O'Hare International Airport, Ser. A, Rev., 7.50%, 01/01/03 77 5 Illinois Housing Development Authority, Ser. A, Rev., 8.00%, 06/01/26 5 ------ 82 Kansas -- 3.9% 2,355 Kansas City, Kansas, Utility System, Rev., +, 6.38%, 09/01/23 2,418 Maryland -- 0.1% 60 Maryland State, Community Development Administra- tion, Department of Housing & Community Develop- ment, Single Family Program, Second Ser., Rev., 7.60%, 04/01/23 61 Massachusetts -- 1.7% 1,000 New England Education Loan Marketing Corp., Massachusetts Student Loan, Sub-Issue H, Rev., 6.90%, 11/01/09 1,066 Michigan -- 2.6% 1,000 Michigan State, Housing Development Authority, Rental Housing, Ser. B, Rev., +, 7.55%, 04/01/23 1,038 500 Wayne County, Michigan, Building Authority, Ser. A, GO, -, 8.00%, 03/01/02 539 ------ 1,577 Missouri -- 1.2% 720 Sikeston, Missouri, Electric, Rev., +, 6.00%, 06/01/16 748 Nevada -- 0.1% 80 Nevada Housing Division, Single Family, Ser. A-3, Rev., 8.20%, 10/01/19 81
See notes to financial statements. 8 CHASE VISTA TAX FREE INCOME FUND Portfolio of Investments (Continued) As of February 29, 2000 (unaudited) (Amounts in thousands)
Principal Amount Issuer Value - ----------------------------------------------------------------------------------- Long-Term Municipal Securities -- (continued) - ----------------------------------------------------------------------------------- New Jersey -- 9.4% $3,455 Middletown Township, New Jersey, Board of Education, GO, +, 5.80%, 08/01/20 $3,439 1,500 New Jersey State, Educational Facilities Authority, Fairleigh Dickinson University, Ser. G, Rev., 5.70%, 07/01/28 1,268 1,000 New Jersey State, Transportation Trust Fund Authority, Transportation Systems, Ser. A, Rev., 5.75%, 06/15/15 1,019 ------ 5,726 New York -- 25.1% 2,000 Long Island Power Authority, New York, Electric Systems, Ser. A, Rev., +, 5.50%, 12/01/13 1,998 2,450 New York City, New York, Ser. A, GO, +, 6.25%, 08/01/09 2,601 New York City, New York, IDA, 470 Civic Facility, Mt. St. Vincent College, Rev., 7.00%, 05/01/08 497 2,500 IDR, Brooklyn Navy Yard Cogen Partners Project, Rev., 5.75%, 10/01/36 2,173 Port Authority of New York & New Jersey, 5,000 Consolidated Bonds 93rd Ser., Rev., 6.13%, 06/01/94 5,124 1,500 Consolidated Bonds 114th Ser., Rev., 4.75%, 08/01/33 1,191 2,000 Utica, New York, IDA, Civic Facility, Munson-Williams- Proctor Institute Project, Ser. A, Rev., 5.38%, 07/15/19 1,828 ------ 15,412 Ohio -- 7.2% 4,000 Cleveland, Ohio, Public Power System, First Mortgage, Ser. A, Rev., +, -, 7.00%, 11/15/04 4,405 Oklahoma -- 6.2% 2,000 Oklahoma Housing Finance Agency, Single Family, Ser. B-2, Rev., 6.80%, 09/01/26 2,105 1,750 Oklahoma State, Turnpike Authority, Second Ser., Ser. A, Rev., +, 5.25%, 01/01/13 1,719 ------ 3,824 Pennsylvania -- 4.5% 3,000 Delaware Valley, Pennsylvania, Regional Finance Authority, Local Government, Ser. A, Rev., +, 5.50%, 08/01/28 2,794 Puerto Rico -- 4.3% 75 Puerto Rico Commonwealth, Urban Renewal & Housing Corp., Rev., 7.88%, 10/01/04 77 2,500 Puerto Rico Municipal Finance Agency, Ser. A, GO, +, 6.00%, 08/01/15 2,598 ------ 2,675 South Carolina -- 0.4% 250 South Carolina State, Housing Finance & Development Authority, Multi-Family Housing, Fairway Apartments Project, Rev., 7.63%, 04/01/33 255 South Dakota -- 0.2% 100 South Dakota Housing Development Authority, Home- ownership Mortgage, Ser. A, Rev., 5.88%, 05/01/12 101 Utah -- 0.4% 250 Utah State, Board of Regents, Student Loan, Ser. F, Rev., +, 7.45%, 11/01/08 260
See notes to financial statements. 9 CHASE VISTA TAX FREE INCOME FUND Portfolio of Investments (Continued) As of February 29, 2000 (unaudited) (Amounts in thousands)
Principal Amount Issuer Value - ------------------------------------------------------------------------------ Long-Term Municipal Securities -- (continued) - ------------------------------------------------------------------------------ Virgin Islands -- 4.2% $3,000 Virgin Islands Public Finance Authority, Senior Lien, Ser. A, Rev., 5.50%, 10/01/22 $2,603 Washington -- 0.4% 250 Washington State, Public Power Supply System, Nuclear Project No. 1, Ser. B, Rev., 7.25%, 07/01/09 276 - ------------------------------------------------------------------------------ Total Long-Term Municipal Securities 59,800 (Cost $62,033) - ------------------------------------------------------------------------------ Short-Term Investments -- 0.7% - ------------------------------------------------------------------------------ Shares Money Market Funds -- 0.7% -------------------------- 387 Provident Municipal Cash Money Market Fund 387 38 Provident Municipal Money Market Fund 38 ---------------------------------------------------------------- Total Money Market Funds 425 (Cost $425) - ------------------------------------------------------------------------------ Total Investments -- 97.7% $60,225 (Cost $62,458) - ------------------------------------------------------------------------------
See notes to financial statements. 10 - -------------------------------------------------------------------------------- CHASE VISTA NEW YORK TAX FREE INCOME FUND Portfolio of Investments - -------------------------------------------------------------------------------- As of February 29, 2000 (unaudited) (Amounts in thousands) Principal Amount Issuer Value - ------------------------------------------------------------------------------------ Long-Term Municipal Securities -- 94.4% - ------------------------------------------------------------------------------------ New York -- 75.8% $ 550 Monroe County, New York, IDA, Public Improvement, Canal Ponds Park, Ser. A, Rev., 7.00%, 06/15/13 $ 579 6,925 Nassau County, New York, Ser. P, GO, +, -, 6.40%, 11/01/04 7,469 New York City, New York, 1,000 Ser. A, GO, +, 6.25%, 08/01/08 1,062 1,000 Ser. B, GO, 7.50%, 02/01/03 1,057 160 Ser. F, GO, 8.25%, 11/15/02 171 New York City, New York, IDA, 475 Civic Facility, Mt. St. Vincent College, Rev., 7.00%, 05/01/08 502 1,430 Civic Facility, New York Blood Center Inc. Project, Rev., -, 7.20%, 05/01/04 1,544 1,500 Civic Facility, YMCA Greater New York Project, Rev., 5.80%, 08/01/16 1,444 3,010 IDR, Brooklyn Navy Yard Cogen Partners Project, Rev., 6.20%, 10/01/22 2,875 New York City, New York, Municipal Water Finance Authority, Water & Sewer Systems, 130 Ser. A, Rev., +, -, 7.00%, 06/15/01 135 605 Ser. A, Rev., +, 7.00%, 06/15/09 629 1,000 New York Convention Center, Operating Corp., Yale Building Acquisition Project, COP, 6.50%, 12/01/01 996 2,550 New York State, Dorm Authority, Niagara Nursing Home, Rev., +, 5.55%, 08/01/27 2,366 2,500 New York State, Energy Research & Development Authority, Electric Facilities, Lilco Project, Ser. B, Rev., 5.30%, 11/01/23 2,167 New York State, Environmental Facilities Corp., PCR, State Water Revolving Fund, 3,000 New York City Municipal Water, Rev., 5.75%, 06/15/12 3,080 705 Ser. A, Rev., 7.25%, 06/15/10 741 New York State, Housing Finance Agency, 300 Multi-Family Housing, Ser. A, Rev., 6.95%, 08/15/12 314 860 Rev., 8.00%, 11/01/08 885 4,005 New York State, Local Government Assistance Corp., Ser. E, Rev., +, 5.25%, 04/01/16 3,813 745 New York State, Medical Care Facilities Finance Agency, Rev., 7.88%, 08/15/20 770 1,000 New York State, Municipal Bond Bank Agency, Special Program, Buffalo, Ser. A, Rev., 6.88%, 03/15/06 1,043 2,000 New York State, Thruway Authority, Service Contract, Local Highway & Bridge, 6.00%, 04/01/11 2,049 2,205 New York State, Urban Development Corp., Center for Individual Innovation Project, Rev., 5.50%, 01/01/13 2,159 4,540 Niagara, New York, Frontier Transportation Authority, Greater Buffalo International Airport, Ser. B, Rev., +, 5.75%, 04/01/04 4,654 Port Authority of New York & New Jersey, 5,000 Consolidated Bonds 93rd Ser., Rev., 6.13%, 06/01/94 5,125 3,000 Special Obligation, 3rd Installment, Special Project, KIAC-4, Rev., 7.00%, 10/01/07 3,113
See notes to financial statements. 11 CHASE VISTA NEW YORK TAX FREE INCOME FUND Portfolio of Investments (Continued) As of February 29, 2000 (unaudited) (Amounts in thousands) Principal Amount Issuer Value - ------------------------------------------------------------------------------------ Long-Term Municipal Securities -- (continued) - ------------------------------------------------------------------------------------ New York -- Continued $ 5,000 Rensselaer, New York, Municipal Leasing Corp., Rensselaer County Nursing Home, Ser. A, Rev., 6.90%, 06/01/24 $ 5,000 5,000 Suffolk County, New York, IDA, IDR, Nissequogue Cogen Partners Facility, Rev., 5.50%, 01/01/23 4,156 1,150 Westchester County, New York, GO, -, 6.70%, 11/01/06 1,260 Westchester County, New York, IDA, 775 AGR Realty Co. Project, Rev., -, 5.75%, 01/01/02 780 2,000 Civic Facility, Children's Village Project, Ser. A, Rev., 5.30%, 03/15/14 1,855 1,000 Civic Facility, Rippowam-Cisqua School Project, Rev., 5.75%, 06/01/29 902 2,000 Resource Recovery, Resco Co. Project, Ser. A, Rev., +, 5.70%, 07/01/08 2,048 ------- 66,743 Puerto Rico -- 7.8% 3,500 Puerto Rico Commonwealth, Public Improvement, GO, 5.25%, 07/01/15 3,333 2,000 Puerto Rico Industrial, Medical & Environmental PCFFA, Special Facilities, American Airlines, Ser. A, Rev., 6.45%, 12/01/25 1,968 1,500 Puerto Rico Municipal Finance Agency, Ser. A, GO, +, 6.00%, 08/01/15 1,559 ------- 6,860 Virgin Islands -- 10.8% Virgin Islands Public Finance Authority, 4,000 Gross Receipts, Taxes Lien Notes, Ser. A, Rev., 6.38%, 10/01/19 3,923 1,150 Matching Fund Lien Notes, Ser. A, Rev., -, 7.25%, 10/01/02 1,247 5,000 Senior Lien, Ser. A, Rev., 5.50%, 10/01/22 4,337 ------- 9,507 ------- Total Long-Term Municipal Securities 83,110 (Cost $85,458) - ------------------------------------------------------------------------------------ Short-Term Investments -- 4.2% - ------------------------------------------------------------------------------------ Municipal Securities -- 1.5% ---------------------------- New York -- 1.5% 500 Long Island Power Authority, New York, Electric Sys- tems, Sub. Ser. 5, Rev., FRDO, 3.75%, 03/01/00 500 New York City, New York, 300 Ser. B, Sub. Ser. B-4, GO, FRDO, +, 3.80%, 03/01/00 300 500 Ser. B, Sub. Ser. B-7, GO, FRDO, +, 3.80%, 03/01/00 500 ---------------------------------------------------------------------- Total Municipal Securities 1,300 (Cost $1,300) ---------------------------------------------------------------------- Shares Money Market Fund -- 2.7% ------------------------- 2,389 Provident New York Money Market Fund 2,389 (Cost $2,389) - ------------------------------------------------------------------------------------ Total Short-Term Investments 3,689 (Cost $3,689) - ------------------------------------------------------------------------------------ Total Investments -- 98.6% $86,799 (Cost $89,147) - ------------------------------------------------------------------------------------
See notes to financial statements. 12 - -------------------------------------------------------------------------------- CHASE VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND Portfolio of Investments - -------------------------------------------------------------------------------- As of February 29, 2000 (unaudited) (Amounts in thousands) Principal Amount Issuer Value - ------------------------------------------------------------------------------------ Long-Term Municipal Securities -- 93.5% - ------------------------------------------------------------------------------------ California--77.1% $ 750 California Educational Facilities Authority, Stanford University, Ser. P, Rev., 5.25%, 12/01/13 $ 751 California State, 700 GO, +, -, 6.25%, 10/01/02 742 200 GO, 6.40%, 09/01/08 220 250 California State, Public Works Board, Ser. A, Rev., 6.00%, 09/01/01 256 300 Chico, California, Unified School District, GO, +, 4.25%, 08/01/09 279 1,850 Contra Costa, California, Water District, Ser. G, Rev.,+, 5.75%, 10/01/14 1,879 1,000 Fallbrook, California, Unified High School District, San Diego County, GO, +, 5.38%, 09/01/12 1,017 750 Foothill/Eastern Corridor Agency, California Toll Road, Rev., 5.00%, 01/15/06 743 200 Los Angeles County, California, Metropolitan Transpor- tation Authority, Sales Tax, Proposition A, First Tier, Ser. A, Rev.,+, 5.25%, 07/01/13 197 900 Los Angeles County, California, Transportation Commission, Sales Tax, Proposition C, 2nd Ser., Ser. A, Rev., +, 5.88%, 07/01/02 930 Los Angeles, California, Unified School District, 375 Ser. A, GO, +, 6.00%, 07/01/15 395 190 Ser. B, GO, +, 5.38%, 07/01/12 192 Northern California Power Agency, Public Power, 340 Ser. A, +, -, 5.80%, 07/01/09 359 560 Ser. A, +, 5.80%, 07/01/09 590 700 Orange County, California, Local Transportation Authority, Sales Tax, First Ser., Measure M, Rev., 5.60%, 02/15/02 716 700 Redwood City, California, Elementary School District, GO, +, 5.00%, 08/01/16 648 35 Richmond, California, Wastewater, Rev., +, 5.20%, 08/01/11 35 220 Sacramento, California, City Unified School District, Ser. A, GO, 5.00%, 07/01/02 223 900 Sacramento, California, Public Facilities Project, COP, 6.00%, 07/01/12 917 100 San Diego, California, Unified School District, Capital Appreciation, Ser. A, GO, +, 0.00%, 07/01/09 61 325 San Francisco, California, City & County Airport Commis- sion, International Airport, Second Ser., Issue 18A, Rev., +, 6.00%, 05/01/04 341 105 San Francisco, California, City & County Redevelopment Agency, Hotel Tax, Rev., +, -, 6.75%, 07/01/04 115 1,000 Santa Clara County, California, Financing Authority, Ser. A, Rev., +, 5.75%, 11/15/13 1,043 1,200 South Orange County, California, Public Financing Authority, Special Tax, Senior Lien, Ser. A, +, 6.20%, 09/01/13 1,249 1,000 University of California, UC Medical Center, Rev., +, 10.00%, 07/01/06 1,273 ------ 15,171
See notes to financial statements. 13 CHASE VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND Portfolio of Investments (Continued) As of February 29, 2000 (unaudited) (Amounts in thousands) Principal Amount Issuer Value - ------------------------------------------------------------------------------------ Long-Term Municipal Securities -- (continued) - ------------------------------------------------------------------------------------ Puerto Rico -- 11.5% $ 770 Puerto Rico Commonwealth, GO, 5.30%, 07/01/04 $ 781 470 Puerto Rico Commonwealth, Highway & Transportation Authority, Ser. W, Rev., +, 5.50%, 07/01/15 470 500 Puerto Rico Electric Power Authority, Ser. AA, Rev., 4.80%, 07/01/01 502 500 Puerto Rico Municipal Finance Agency, Ser. A, GO, +, 5.75%, 08/01/13 513 ------- 2,266 Virgin Islands -- 4.9% 1,000 Virgin Islands Public Finance Authority, Gross Receipts, Taxes Lien Notes, Ser. A, Rev., 5.63%, 10/01/10 969 - ------------------------------------------------------------------------------------ Total Long-Term Municipal Securities 18,406 (Cost $18,388) - ------------------------------------------------------------------------------------ Short-Term Investments -- 6.6% - ------------------------------------------------------------------------------------ Municipal Securities -- 5.1% ---------------------------- California -- 5.1% California PCFA, 100 PCR, Pacific Gas & Electric, Ser. F, Rev., FRDO, 3.20%, 03/01/00 100 200 Resource Recovery, OMS Equity Stanislaus Project, Rev., FRDO, 3.15%, 03/01/00 200 300 Chula Vista, California, IDR, San Diego Gas, Ser. A, Rev., FRDO, 3.05%, 03/01/00 300 Irvine Ranch, California, Water District, 100 Consolidated Bonds, Rev., FRDO, 3.25%, 03/01/00 100 100 District No. 105, 140, 240 & 250, GO, FRDO, 3.05%, 03/01/00 100 100 District No. 182, Ser. A, GO, FRDO, 3.05%, 03/01/00 100 100 Los Angeles, California, Regional Airports Improvement Corp., Terminal Facility, Los Angeles International Air- port, Rev., FRDO, 3.80%, 03/01/00 100 ---------------------------------------------------------------------- Total Municipal Securities 1,000 (Cost $1,000) ---------------------------------------------------------------------- Shares Money Market Fund -- 1.5% ------------------------- 286 Provident California Money Market Fund 286 (Cost $286) - ------------------------------------------------------------------------------------ Total Short-Term Investments 1,286 (Cost $1,286) - ------------------------------------------------------------------------------------ Total Investments -- 100.1% $19,692 (Cost $19,674) - ------------------------------------------------------------------------------------
See notes to financial statements. 14 CHASE VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND Portfolio of Investments (Continued) (Unaudited) INDEX: + -- Insured security. - - -- Security is prerefunded or escrowed to maturity. The maturity date shown is the date of the prerefunded call. COP -- Certificates of Participation. Dorm -- Dormitory. FRDO -- Floating Rate Demand Obligation: The maturity date shown is the next interest reset date; the rate shown is the rate in effect at February 29, 2000. GO -- General Obligation. IDA -- Industrial Development Authority. IDR -- Industrial Development Revenue. PCFA -- Pollution Control Financing Authority. PCFFA -- Pollution Control Facilities Financing Authority. PCR -- Pollution Control Revenue. Rev. -- Revenue Bond. See notes to financial statements. 15 - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES As of February 29, 2000 (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) ..... $60,225 $86,799 $19,692 Cash ......................................... 3 15 -- Other assets ................................. 1 1 -- Receivables: Interest .................................... 1,067 1,465 278 Fund shares sold ............................ 802 58 -- - ---------------------------------------------------------------------------------------- Total Assets .............................. 62,098 88,338 19,970 - ---------------------------------------------------------------------------------------- LIABILITIES: Payables: Investment securities purchased ............. -- -- 223 Fund shares redeemed ........................ 280 129 -- Dividends ................................... 68 106 33 Accrued liabilities: (Note 2) ................ Investment advisory fees .................... 2 11 -- Administration fees ......................... 7 11 -- Shareholder servicing fees .................. 7 9 -- Distribution fees ........................... 7 8 -- Custodian fees .............................. 11 12 10 Other ....................................... 52 32 29 - ---------------------------------------------------------------------------------------- Total Liabilities ......................... 434 318 295 - ---------------------------------------------------------------------------------------- NET ASSETS: Paid in capital .............................. 64,381 92,000 19,642 Accumulated undistributed (distributions in excess of) net investment income ........................ (94) (51) 188 Accumulated net realized loss on investment transactions ...................... (390) (1,581) (173) Net unrealized appreciation (depreciation) of investments ................ (2,233) (2,348) 18 - ---------------------------------------------------------------------------------------- Net Assets ................................ $61,664 $88,020 $19,675 - ---------------------------------------------------------------------------------------- Shares of beneficial interest outstanding ($.001 par value; unlimited number of shares authorized) ............................ Class A Shares ............................... 4,287 6,893 2,048 Class B Shares ............................... 955 1,179 -- Class A: Net asset value and redemption price per share (net assets/ shares outstanding) ................................. $ 11.77 $ 10.91 $ 9.61 Maximum offering price per share (net asset value per share/95.5%) ............ $ 12.32 $ 11.42 $ 10.06 Class B: Net asset value and maximum offering price per share (net assets/ shares outstanding)* ......................... $ 11.71 $ 10.88 $ -- Cost of investments ........................... $62,458 $89,147 $19,674 - ----------------------------------------------------------------------------------------
*Redemption may be subject to contingent deferred sales charge. See notes to financial statements. 16 - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS For the six months ended February 29, 2000 (unaudited) - -------------------------------------------------------------------------------- (Amounts in Thousands)
New York California Tax Free Intermediate Tax Free Income Tax Free Income Fund Fund Fund - ----------------------------------------------------------------------------------- INTEREST INCOME: (Note 1C) ................ $1,793 $ 2,684 $ 493 - ----------------------------------------------------------------------------------- EXPENSES: (Note 2) Investment advisory fees ................. 99 141 31 Administration fees ...................... 49 70 15 Shareholder servicing fees ............... 82 117 26 Distribution fees ........................ 114 152 26 Custodian fees ........................... 33 54 22 Printing and postage ..................... 14 14 3 Professional fees ........................ 17 16 14 Registration costs ....................... 13 1 4 Transfer agent fees ...................... 64 58 15 Trustees' fees ........................... 2 2 1 Other .................................... 1 2 2 - ----------------------------------------------------------------------------------- Total expenses ........................ 488 627 159 - ----------------------------------------------------------------------------------- Less amounts waived (Note 2E) ............ 186 218 98 - ----------------------------------------------------------------------------------- Net expenses .......................... 302 409 61 - ----------------------------------------------------------------------------------- Net investment income ................ 1,491 2,275 432 - ----------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized loss on investments ......... (390) (1,267) (173) Change in net unrealized appreciation/ depreciation of investments .............. (1,719) (2,372) (3) - ----------------------------------------------------------------------------------- Net realized and unrealized loss on investments ........................... (2,109) (3,639) (176) - ----------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations ................... $ (618) $(1,364) $ 256 - -----------------------------------------------------------------------------------
See notes to financial statements. 17 - -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS For the periods indicated (unaudited) - -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS For the periods indicated (unaudited) (Amounts in Thousands)
New York California Tax Free Tax Free Intermediate Income Fund Income Fund Tax Free Fund --------------------- ------------------------- ------------------------- 09/01/99 Year 09/01/99 Year 09/01/99 Year through Ended through Ended through Ended 02/29/00 08/31/99 02/29/00 08/31/99 02/29/00 08/31/99 - -------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income $ 1,491 $ 3,097 $ 2,275 $ 5,279 $ 432 $ 949 Net realized gain (loss) on investments and futures transactions .............................. (390) 392 (1,267) (71) (173) 219 Change in net unrealized appreciation/ depreciation of investments and futures ........... (1,719) (4,490) (2,372) (6,828) (3) (1,056) - -------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from operations ...................................... (618) (1,001) (1,364) (1,620) 256 112 - -------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: Class A .......................................... (1,252) (2,576) (1,990) (4,734) (433) (949) Class B .......................................... (237) (520) (284) (542) -- -- Net realized gain on investment transactions: Class A .......................................... (66) -- (180) (960) (217) (316) Class B .......................................... (15) -- (33) (134) -- -- - -------------------------------------------------------------------------------------------------------------------------------- Total distributions to shareholders ............. (1,570) (3,096) (2,487) (6,370) (650) (1,265) - -------------------------------------------------------------------------------------------------------------------------------- Decrease from capital share transactions # ......... (6,199) (2,228) (9,746) (16,066) (920) (1,854) - -------------------------------------------------------------------------------------------------------------------------------- Total decrease in net assets .................... (8,387) (6,325) (13,597) (24,056) (1,314) (3,007) NET ASSETS: Beginning of period ............................... 70,051 76,376 101,617 125,673 20,989 23,996 - -------------------------------------------------------------------------------------------------------------------------------- End of period ..................................... $61,664 $70,051 $88,020 $101,617 $19,675 $20,989 - --------------------------------------------------------------------------------------------------------------------------------
# See detailed Capital Share Transactions. See notes to financial statements. 18 - -------------------------------------------------------------------------------- CHASE VISTA TAX FREE INCOME FUND Capital Share Transactions - -------------------------------------------------------------------------------- TAX FREE INCOME FUND Capital Share Transactions For the periods indicated (unaudited) (Amounts in Thousands)
- ----------------------------------------------------------------------------------------------------------- Class A Class B - ----------------------------------------------------------------------------------------------------------- Six Months Ended February 29, 2000 Amount Shares Amount Shares - ----------------------------------------------------------------------------------------------------------- Shares sold $ 25,118 2,112 $ 727 69 Shares issued in reinvestment of distributions 920 77 179 15 Shares redeemed (30,177) (2,544) (2,966) (251) - ----------------------------------------------------------------------------------------------------------- Net decrease in Fund shares outstanding $ (4,139) (355) $ (2,060) (167) ===========================================================================================================
- ----------------------------------------------------------------------------------------------------------- Class A Class B - ----------------------------------------------------------------------------------------------------------- Year Ended August 31, 1999 Amount Shares Amount Shares - ----------------------------------------------------------------------------------------------------------- Shares sold $ 49,991 3,930 $ 4,030 316 Shares issued in reinvestment of distributions 1,705 134 360 28 Shares redeemed (52,915) (4,152) (5,399) (425) - ----------------------------------------------------------------------------------------------------------- Net decrease in Fund shares outstanding $ (1,219) (88) $ (1,009) (81) ===========================================================================================================
See notes to financial statements. 19 - -------------------------------------------------------------------------------- CHASE VISTA NEW YORK TAX FREE INCOME FUND Capital Share Transactions - -------------------------------------------------------------------------------- NEW YORK TAX FREE INCOME FUND Capital Share Transactions For the periods indicated (unaudited) (Amounts in Thousands)
- --------------------------------------------------------------------------------------------------------------- Class A Class B - --------------------------------------------------------------------------------------------------------------- Six Months Ended February 29, 2000 Amount Shares Amount Shares - --------------------------------------------------------------------------------------------------------------- Shares sold $ 14,506 1,318 $ 478 43 Shares issued in reinvestment of distributions 1,363 123 139 13 Shares redeemed (23,937) (2,163) (2,295) (208) - --------------------------------------------------------------------------------------------------------------- Net decrease in Fund shares outstanding $ (8,068) (722) $ (1,678) (152) ===============================================================================================================
- --------------------------------------------------------------------------------------------------------------- Class A Class B - --------------------------------------------------------------------------------------------------------------- Year Ended August 31, 1999 Amount Shares Amount Shares - --------------------------------------------------------------------------------------------------------------- Shares sold $ 40,533 3,372 $ 3,825 321 Shares issued in reinvestment of distributions 4,452 373 503 42 Shares redeemed (62,404) (5,230) (2,975) (249) - --------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ (17,419) (1,485) $ 1,353 114 ===============================================================================================================
See notes to financial statements. 20 - -------------------------------------------------------------------------------- CHASE VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND Capital Share Transactions - -------------------------------------------------------------------------------- CALIFORNIA INTERMEDIATE TAX FREE FUND Capital Share Transactions For the periods indicated (unaudited) (Amounts in Thousands)
- -------------------------------------------------------------------------------------- Amount Shares - -------------------------------------------------------------------------------------- Six Months Ended February 29, 2000 Shares sold $ 549 57 Shares issued in reinvestment of distributions 185 19 Shares redeemed (1,654) (172) - -------------------------------------------------------------------------------------- Net decrease in Fund shares outstanding $ (920) (96) ======================================================================================
- -------------------------------------------------------------------------------------- Amount Shares - -------------------------------------------------------------------------------------- Year Ended August 31, 1999 Shares sold $ 4,457 435 Shares issued in reinvestment of distributions 490 48 Shares redeemed (6,801) (671) - -------------------------------------------------------------------------------------- Net decrease in Fund shares outstanding $ (1,854) (188) ======================================================================================
See notes to financial statements. 21 - -------------------------------------------------------------------------------- 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 (the "1940 Act"), as an open-end, non-diversified management investment company. Chase Vista Tax Free Income Fund ("TFI"), Chase Vista New York Tax Free Income Fund ("NYTFI") and Chase Vista California Intermediate Tax Free Fund ("CITF") (collectively, the "Funds") are three separate portfolios of the Trust. TFI and NYTFI 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 accounted for on the trade date (the date the order to buy or sell is executed). Securities gains and losses are calculated on the identified cost basis. Interest income is determined on the basis of coupon interest accrued, adjusted for amortization of premiums and accretion of discount. Dividend income is recorded on the ex-dividend date. 22 NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) Purchases of when-issued or delayed delivery securities may be settled a month or more after the trade date; interest income is not accrued until settlement date. Each Fund segregates assets with a current value at least equal to the amount of its when-issued or delayed delivery purchase commitments. 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. The Funds invest in U.S. Treasury and/or Municipal Bond futures contracts as a hedge to modify the duration of the portfolio holdings. As of February 29, 2000, 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 and distributions paid to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations, which may differ from generally accepted accounting principles. To the extent these "book/tax" differences are permanent in nature (i.e., that they result from other than timing of recognition -- "temporary differences"), such amounts are reclassified within the capital accounts based on their Federal income 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; other expenses are allocated proportionately among each of the Funds within the Trust in relation to the net assets of each Fund or on another reasonable basis. Expenses directly attributable to a particular class are charged directly to such class. In calculating net asset value per share of each class, investment income, realized and unrealized gains and losses and expenses other than class specific expenses (e.g. transfer agent fees), are allocated daily to each 23 NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) 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 "Adviser" ) 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. 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 TFI and NYTFI 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 24 NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) 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 months ended February 29, 2000, the Funds' vendors voluntarily waived fees for each of the Funds as follows (amounts in thousands):
TFI NYTFI CITF ----------------------------------------------------------- Investment Advisory ............ $ 82 $ 62 $ 31 Administration ................. -- -- 15 Shareholder Servicing .......... 37 56 26 Distribution ................... 67 100 26 ---- ----- ---- $186 $ 218 $ 98 ==== ===== ====
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) for the six months ended February 29, 2000, were as follows (amounts in thousands):
TFI NYTFI CITF -------------------------------------------------------- Purchases ................ $2,595 $14,894 $16,214 Sales .................... 7,791 25,086 16,671
4. Federal Income Tax Matters For Federal income tax purposes, the cost and unrealized appreciation/ (depreciation) in value of the investment securities at February 29, 2000, are as follows (amounts in thousands): TFI NYTFI CITF --------------------------------------------------------------------------- Aggregate cost ......................... $ 62,458 $ 89,147 $19,674 -------- -------- ------- Gross unrealized appreciation.......... $ 893 $ 885 $ 200 Gross unrealized depreciation.......... (3,126) (3,233) (182) -------- -------- ------- Net unrealized appreciation/ (depreciation) ......................... $ (2,233) $ (2,348) $ 18 ======== ======== =======
5. Concentration of Credit Risk TFI, NYTFI and CITF 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. NYTFI and CITF primarily invest in issuers in the States of New York and California, respectively. As of February 29, 2000, TFI invested approximately 25.1% of its net assets in 25 NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) 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. 6. 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 months ended February 29, 2000, included in Trustees Fees 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):
Pension Accrued Expenses Pension Liability --------------------------------------------------------- TFI ................. $1 $ 8 NYTFI ............... 1 11 CITF ................ 1 3
7. 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 0.50%. The Funds also pay a commitment fee of 0.10% per annum on the average daily amount of the available commitment, which is allocated on a pro-rata 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 29, 2000, nor at any time during the six months then ended. 26 - -------------------------------------------------------------------------------- CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (unaudited)
Tax Free Income Fund ------------------------------------------------------------------ Class A ------------------------------------------------------------------ 9/1/99 Year Ended August 31, Through ----------------------------------------------------- 2/29/00 1999 1998 1997 1996 1995 ------- ------ ------ ------ ------ ------ Per share operating performance Net asset value, beginning of period ................ $12.17 $12.89 $12.32 $11.84 $11.85 $11.70 ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income .............................. 0.28 0.56 0.56 0.58 0.58 0.58 Net gains or losses in securities (both realized and unrealized) ........................................ (0.38) (0.72) 0.57 0.48 (0.01) 0.15 ------ ------ ------ ------ ------ ------ Total from investment operations .................. (0.10) (0.16) 1.13 1.06 0.57 0.73 ------ ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income ................ 0.28 0.56 0.56 0.58 0.58 0.58 Distributions from capital gains ................... 0.02 -- -- -- -- -- ------ ------ ------ ------ ------ ------ Total distributions ............................... 0.30 0.56 0.56 0.58 0.58 0.58 ------ ------ ------ ------ ------ ------ Net asset value, end of period ...................... $11.77 $12.17 $12.89 $12.32 $11.84 $11.85 ====== ====== ====== ====== ====== ====== Total return (1) .................................... (0.87%) (1.33%) 9.38% 9.14% 4.88% 6.53% Ratios/supplemental data: Net assets, end of period (millions) ................ $ 51 $ 56 $ 61 $ 63 $ 70 $ 89 Ratios to average net assets:# Expenses ........................................... 0.75% 0.75% 0.80% 0.90% 0.90% 0.85% Net investment income .............................. 4.71% 4.41% 4.44% 4.78% 4.83% 5.07% Expenses without waivers and assumption of expenses ........................................... 1.39% 1.37% 1.31% 1.29% 1.46% 1.47% Net investment income without waivers and assumption of expenses ............................. 4.07% 3.79% 3.93% 4.39% 4.27% 4.45% Portfolio turnover rate ............................. 4% 102% 172% 147% 210% 233%
Tax Free Income Fund ---------------------------------------------------------------- Class B ---------------------------------------------------------------- 9/1/99 Year Ended August 31, Through --------------------------------------------------- 2/29/00 1999 1998 1997 1996 1995 ------- ------ ------ ------ ------ ------ Per share operating performance Net asset value, beginning of period ................ $12.10 $12.82 $12.25 $11.76 $11.77 $11.65 ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income .............................. 0.22 0.45 0.45 0.48 0.49 0.50 Net gains or losses in securities (both realized and unrealized) ........................................ (0.37) (0.72) 0.57 0.48 (0.01) 0.14 ------ ------ ------ ------ ------ ------ Total from investment operations .................. (0.15) (0.27) 1.02 0.96 0.48 0.64 ------ ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income ................ 0.22 0.45 0.45 0.47 0.49 0.52 Distributions from capital gains ................... 0.02 -- -- -- -- -- ------ ------ ------ ------ ------ ------ Total distributions ............................... 0.24 0.45 0.45 0.47 0.49 0.52 ------ ------ ------ ------ ------ ------ Net asset value, end of period ...................... $11.71 $12.10 $12.82 $12.25 $11.76 $11.77 ====== ====== ====== ====== ====== ====== Total return (1) .................................... (1.24%) (2.23%) 8.45% 8.30% 4.10% 5.70% Ratios/supplemental data: Net assets, end of period (millions) ................ $ 11 $ 14 $ 15 $ 14 $ 14 $ 14 Ratios to average net assets:# Expenses ........................................... 1.64% 1.64% 1.64% 1.64% 1.65% 1.61% Net investment income .............................. 3.82% 3.52% 3.60% 4.04% 4.08% 4.31% Expenses without waivers and assumption of expenses ........................................... 1.90% 1.87% 1.81% 1.79% 1.95% 1.97% Net investment income without waivers and assumption of expenses ............................. 3.56% 3.29% 3.43% 3.89% 3.78% 3.95% Portfolio turnover rate ............................. 4% 102% 172% 147% 210% 233% ===========================================================================================================================
(1) Total return figures do not include the effect of any sales load. # Short periods have been annualized. See notes to financial statements. 27 - -------------------------------------------------------------------------------- CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (unaudited) (continued)
New York Tax Free Income Fund ----------------------------------------------------------------- Class A ----------------------------------------------------------------- 9/1/99 Year Ended August 31, Through ---------------------------------------------------- 2/29/00 1999 1998 1997 1996 1995 ------- ------ ------ ------ ------ ------ Per share operating performance Net asset value, beginning of period .......... $11.36 $12.18 $11.80 $11.39 $11.47 $11.30 ------- ------ ------ ------ ------ ------ Income from investment operations: Net investment income ........................ 0.28 0.53 0.54 0.56 0.56 0.57 Net gains or losses on securities (both realized and unrealized) ............... (0.42) (0.71) 0.50 0.43 (0.08) 0.17 ------- ------ ------ ------ ------ ------ Total from investment operations ............ (0.14) (0.18) 1.04 0.99 0.48 0.74 ------- ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income ......... 0.28 0.53 0.54 0.56 0.56 0.57 Distributions from capital gains ............. 0.03 0.11 0.12 0.02 -- -- ------- ------ ------ ------ ------ ------ Total distributions ......................... 0.31 0.64 0.66 0.58 0.56 0.57 ------- ------ ------ ------ ------ ------ Net asset value, end of period ................ $10.91 $11.36 $12.18 $11.80 $11.39 $11.47 ====== ====== ====== ====== ====== ====== Total return (1) .............................. (1.31%) (1.60%) 9.03% 8.85% 4.20% 6.82% Ratios/Supplemental Data: Net assets, end of period (millions) .......... $ 75 $ 87 $ 111 $ 83 $ 96 $ 104 Ratios to average net assets:# Expenses ..................................... 0.74% 0.75% 0.79% 0.90% 0.90% 0.85% Net investment income ........................ 4.99% 4.46% 4.52% 4.77% 4.76% 5.11% Expenses without waivers and assumption of Expenses ..................................... 1.26% 1.20% 1.21% 1.18% 1.27% 1.37% Net investment income without waivers and assumption of expenses ....................... 4.47% 4.01% 4.10% 4.49% 4.39% 4.59% Portfolio turnover rate ....................... 17% 65% 91% 107% 156% 122% =====================================================================================================================
New York Tax Free Income Fund ----------------------------------------------------------------- Class B ----------------------------------------------------------------- 9/1/99 Year Ended August 31, Through ---------------------------------------------------- 2/29/00 1999 1998 1997 1996 1995 ------- ------ ------ ------ ------ ------ Per share operating performance Net asset value, beginning of period .......... $11.34 $12.16 $11.76 $11.33 $11.41 $11.27 ------- ------ ------ ------ ------ ------ Income from investment operations: Net investment income ........................ 0.23 0.43 0.44 0.46 0.47 0.49 Net gains or losses on securities (both realized and unrealized) ............... (0.43) (0.71) 0.51 0.43 (0.09) 0.16 ------- ------ ------ ------ ------ ------ Total from investment operations ............ (0.20) (0.28) 0.95 0.89 0.38 0.65 ------- ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income ......... 0.23 0.43 0.43 0.44 0.46 0.51 Distributions from capital gains ............. 0.03 0.11 0.12 0.02 -- -- ------- ------ ------ ------ ------ ------ Total distributions ......................... 0.26 0.54 0.55 0.46 0.46 0.51 ------- ------ ------ ------ ------ ------ Net asset value, end of period ................ $10.88 $11.34 $12.16 $11.76 $11.33 $11.41 ====== ====== ====== ====== ====== ====== Total return (1) .............................. (1.84%) (2.47%) 8.27% 8.03% 3.46% 5.99% Ratios/Supplemental Data: Net assets, end of period (millions) .......... $ 13 $ 15 $ 15 $ 14 $ 14 $ 11 Ratios to average net assets:# Expenses ..................................... 1.63% 1.64% 1.64% 1.64% 1.65% 1.61% Net investment income ........................ 4.10% 3.58% 3.68% 4.03% 4.01% 4.35% Expenses without waivers and assumption of Expenses ..................................... 1.77% 1.70% 1.71% 1.68% 1.76% 1.87% Net investment income without waivers and assumption of expenses ....................... 3.96% 3.52% 3.61% 3.99% 3.90% 4.09% Portfolio turnover rate ....................... 17% 65% 91% 107% 156% 122% =====================================================================================================================
(1) Total return figures do not include the effect of any sales load. # Short periods have been annualized. 28 - ------------------------------------------------------------ CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS (unaudited) (continued)
California Intermediate Tax Free Fund ---------------------------------------------- 9/1/99 Year Ended August 31, Through ---------------------------------------------- 2/29/00 1999 1998 1997 1996 1995 ------- ---- ---- ---- ---- ---- Per share operating performance Net asset value, beginning of period ............................... $9.79 $10.29 $10.07 $9.81 $9.89 $9.69 ----- ------ ------ ----- ----- ----- Income from investment operations: Net investment income ............................................. 0.20 0.41 0.45 0.46 0.48 0.51 Net gains or losses on securities (both realized and unrealized) .. (0.08) (0.37) 0.32 0.26 0.01 0.20 ----- ------ ------ ----- ----- ----- Total from investment operations ................................. 0.12 0.04 0.77 0.72 0.49 0.71 ----- ------ ------ ----- ----- ----- Less distributions: Dividends from net investment income .............................. 0.20 0.41 0.45 0.33 0.48 0.51 Distributions from capital gains .................................. 0.10 0.13 0.10 0.13 0.09 - ----- ------ ------ ----- ----- ----- Total distributions .............................................. 0.30 0.54 0.55 0.46 0.57 0.51 ----- ------ ------ ----- ----- ----- Net asset value, end of period ..................................... $9.61 $ 9.79 $10.29 $10.07 $9.81 $9.89 ===== ====== ====== ====== ===== ===== Total return (1) ................................................... 1.33% 0.28% 7.81% 7.46% 5.00% 7.55% Ratios/supplemental data: Net assets, end of period (millions) ............................... $ 20 $ 21 $ 24 $ 26 $ 28 $ 33 Ratios to average net assets:# Expenses .......................................................... 0.60% 0.60% 0.60% 0.60% 0.60% 0.52% Net investment income ............................................. 4.24% 3.99% 4.38% 4.65% 4.77% 5.24% Expenses without waivers and assumption of expenses ............... 1.56% 1.46% 1.44% 1.33% 1.47% 1.40% Net investment income without waivers and assumption of expenses .. 3.28% 3.13% 3.54% 3.92% 3.90% 4.36% Portfolio turnover rate ............................................ 90% 111% 44% 66% 188% 94% ===================================================================================================================================
(1) Total return figures do not include the effect of any sales load. # Short periods have been annualized. See notes to financial statements. 29 CHASE VISTA TAX FREE FUNDS SEMI-ANNUAL REPORT Investment Adviser, Administrator, Funds for providing investment advisory and other services. Shareholder and Fund Servicing This report is submitted for Agent and Custodian the general information of the shareholders of the funds. It The Chase Manhattan Bank is not authorized for distribution to prospective investors in the funds unless Distributor preceded or accompanied by a prospectus. Vista Fund Distributors, Inc. The financial information in this report has been taken Transfer Agent from the books and records of DST Systems, Inc. the funds without examination by independent accountants, who express no opinion Legal Counsel thereto. Simpson Thacher & Bartlett To obtain a prospectus for any of the Chase Vista Funds, call Independent Accountants 1-800-34-VISTA. The prospectus PricewaterhouseCoopers LLP contains more complete information, including charges Chase Vista Funds are and expenses. Please read it distributed by Vista Fund carefully before you invest or Distributors, Inc., which is send money. unaffiliated with The Chase Manhattan Bank. Chase and its respective affiliates receive compensation from Chase Vista [& symbol] Copy Right The Chase Manhattan Corporation, 2000. All Rights Reserved. April 2000
[CHASE LOGO] CHASE VISTA FUNDS(SM) Chase Vista Funds Fulfillment Center 393 Manley Street West Bridgewater, MA 02379-1039 -----END PRIVACY-ENHANCED MESSAGE-----