-----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, E25ZkIPg/3YT0gYdx9tDR+qT0kPxRBGvRMEscED39ftOu1x43uS1Gsm3PEJ47KZB bX+SkMjlD/EzoqvJUSc2CQ== /in/edgar/work/0000950146-00-000956/0000950146-00-000956.txt : 20001025 0000950146-00-000956.hdr.sgml : 20001025 ACCESSION NUMBER: 0000950146-00-000956 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000831 FILED AS OF DATE: 20001024 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: 744897 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 0001.txt CHASE VISTA TAX FREE ANNUAL REPORT - -------------------------------------------------------------------------------- AUGUST 31, 2000 - -------------------------------------------------------------------------------- TAX FREE INCOME FUND NEW YORK TAX FREE INCOME FUND CALIFORNIA INTERMEDIATE TAX FREE FUND Chase Vista Tax Free Funds ANNUAL REPORT [CHASE LOGO] THE RIGHT RELATIONSHIP IS EVERYTHING.[RegTM] SATF-2-1000 - -------------------------------------------------------------------------------- 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 17 Notes to Financial Statements 20 Highlights o The yield on the average AAA-rated municipal bond rose from 5.70% on September 1, 1999 to 5.90% on February 29, 2000. A rally during the final months of the reporting year pushed the yield down to 5.50% on August 31, 2000. o Other than a bulge in new supply at the end of October 1999, there was very little new issuance during the reporting year. o With the U.S. economy slowing at the same time municipal yields became most attractive relative to other fixed income securities, cross-over buyers such as institutions and insurance companies entered the markets and led the rally at the end of the reporting year. - -------------------------------|------------------------------------------------ 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 October 2, 2000 Dear Shareholder: We are pleased to present this annual report for Chase Vista Tax Free Funds for the year ended August 31, 2000. Inside, you will find information on the performance of each Fund along with a report from the portfolio management team. After Extended Burst of Growth, U.S. Economy Appears to Slow For the great majority of the reporting year, the United States economy continued to expand at a rapid pace, with GDP growth soaring well in excess of the 3.5% that many analysts consider to be the Federal Reserve Board's maximum non-inflationary trend rate. In response, the Fed continued its policy of short-term interest rate increases, creating a generally negative backdrop for the fixed-income markets. The exception was the long-term U.S. Treasury market, which benefited from the February announcement and subsequent implementation of a plan by the United States Treasury department to use proceeds of the budget surplus to "buy back" longer-term Treasuries. In June, with shifting economic data showing a slowing economy, investors decided that the six Fed rate increases over the previous year had begun to take effect. As evidence of a slowdown continued, the bullish view was that the Fed would achieve another "soft landing" in which growth will moderate but not disappear. However, with several potentially troubling issues on the horizon--including the price of crude oil rising to all-time highs--investors are eagerly awaiting the upcoming third quarter GDP figures to understand the full extent of the economy's slowdown. Municipal Bonds Rally at End of Reporting Year Beyond the general issues facing the fixed-income markets, municipal bond performance was driven by a variety of factors, especially supply and demand. Specifically, there was a supply bulge at the end of October, followed by a dearth of new supply at the end of 1999 and into 2000. Despite the lack of supply, municipals generally underperformed Treasuries due to the dislocation caused by the Treasury buyback program. However, as yields on municipals became ever-more attractive, non-traditional and crossover buyers joined retail investors in the market, with the resulting demand combining with the low new supply to lead to four months of strong performance relative to other fixed income securities at the end of the reporting period. In this environment, your portfolio managers did an excellent job, maintaining good relative performance while taking advantage of market tightness to upgrade quality and call protection, moves which were continuing to pay off as the reporting period ended. All of us at Chase thank you for your continued investment and look forward to helping you reach your financial goals for many years to come. Sincerely yours, /s/ Fergus Reid - --------------- Fergus Reid Chairman 1 - -------------------------------------------------------------------------------- CHASE VISTA TAX FREE INCOME FUND As of August 31, 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 6.00% (Class A Shares, without sales charges) for the year ended August 31, 2000, as opposed to the Lehman Municipal Bond Index's return of 6.77%. How the Fund Was Managed As the reporting year began, management allowed the Fund's duration (a measure of interest rate sensitivity) to shorten relative to its peer group, and this proved beneficial in the rising interest rate environment of late 1999. As supply began to shrink dramatically in early 2000, the Fund performed well as the management team had built a portfolio overweight in better-structured, non-callable bonds which were attractive to corporate purchasers looking for longer-dated maturities in the wake of the U.S. Treasury's buyback program. With the ongoing dearth of new supply causing the yield differential 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 policy of focusing on high-quality securities and improving security structure. Despite the lack of supply, municipals lagged Treasuries due to the dislocation caused by the Treasury buyback program. As the reporting year progressed, the Fund's focus on high-quality, well- structured and non-callable bonds began to pay off. For instance, the Fund was able to take profits on its Puerto Rico holdings as these bonds, which enjoy special tax-free status in all 50 states, began to trade in line with California bonds given the extreme lack of California supply. At the end of the year, the Fund's strategy involved buying what little new issuance there was and selling to the retail market in specialty states which had the narrowest supply. The Fund also benefited in the final months of the reporting year by having a longer-than-benchmark duration as rates headed down. Where the Fund May Be Headed In the management team's view, the slowdown in the U.S. economy is real and this, combined with a technical downturn in Treasuries as the buyback program takes a breather until February, may create an opportunity in lower quality, lower coupon bonds. The management team is therefore extending duration (and interest rate sensitivity) a bit as new supply comes on the market and waiting for the moment when spreads decompress sufficiently to make it worthwhile on a yield basis to reverse the strategy that was so successful in the past reporting year. 2 CHASE VISTA TAX FREE INCOME FUND As of August 31, 2000 (Unaudited) Average Annual Total Returns
1 Year 5 Years 10 Years - -------------------------------------------------------------------------------- Class A Shares Without Sales Charge 6.00% 5.54% 7.69% With Sales Charge 1.26% 4.57% 7.19% - -------------------------------------------------------------------------------- Class B Shares Without CDSC 5.16% 4.68% 7.08% With CDSC 0.16% 4.35% 7.08% - --------------------------------------------------------------------------------
10-Year Performance
Chase Vista Lipper General Tax Free Lehman Muni Muni Debt Income Fund Bond Index Funds Avg. 8/90 9550 10000 10000 8/91 10876.2 11179.7 11173.8 8/92 12517.4 12429.9 12447.4 8/93 14623.1 13902.9 13989.5 8/94 14359.3 13923.2 13824.5 8/95 15298 15158.1 14836.3 8/96 16044.1 15950.5 15532.5 8/97 17509.9 17428.3 16906.2 8/98 19148.9 18936.1 18291.3 8/99 18896.2 19030.4 17989.6 8/00 20027 20316 18892
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 index 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 August 31, 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 5.68% (Class A shares, without sales charges) for the year ended August 31, 2000. This compares to the 6.73% return of the Lehman New York Municipal Bond Index and the 6.77% return of the Lehman Municipal Bond Index. How the Fund Was Managed In the final four months of 1999, the Fund pursued a strategy of shortening its relative duration--and therefore its sensitivity to rising interest rates--by actively trading in the secondary market. Additionally, the management team took advantage of heavy New York supply and widening spreads between securities based on quality to add to its high yield positions and increase exposure to non-callable hospital bonds. In the first quarter of 2000, the Fund was hurt by having excess short-term cash positions created by having to be prepared for redemptions from investors looking to offset 1999 equity market capital gains. Specifically, as credit spreads began to tighten in the new year given diminishing New York supply and heavy demand, the management team did not want to chase the market and instead chose to maintain its focus on non-callable, high-quality bonds, a strategy which ultimately proved prescient as the reporting year progressed. With low supply continuing in the second quarter of 2000, the Fund benefited from its holdings in non-callable bonds. The Fund's holdings in Puerto Rico also did quite well as these bonds, which enjoy special tax-free status in all 50 states, began to trade in line with California bonds given the extreme lack of California supply. At the end of the year, the Fund's strategy involved buying what little new issuance there was and selling into the retail market where demand was highest. The Fund also benefited in the final months of the reporting year by having a longer-than-benchmark duration as rates headed down. Where the Fund May Be Headed In the management team's view, the slowdown in the U.S. economy is real and this, combined with a technical downturn in Treasuries as the buyback program takes a breather until February, may create an opportunity in lower quality, lower coupon bonds. The management team is therefore extending duration (and interest-rate sensitivity) a bit as new supply comes on the market and waiting for the moment when quality spreads decompress sufficiently to make it worthwhile on a yield basis to reverse the strategy that was so successful in the past reporting year. 4 CHASE VISTA NEW YORK TAX FREE INCOME FUND As of August 31, 2000 (Unaudited) Average Annual Total Returns
- -------------------------------------------------------------------------------- 1 Year 5 Years 10 Years - -------------------------------------------------------------------------------- Class A Shares Without Sales Charge 5.68% 5.16% 7.07% With Sales Charge 0.88% 4.19% 6.58% - -------------------------------------------------------------------------------- Class B Shares Without CDSC 4.66% 4.29% 6.48% With CDSC -0.34% 3.95% 6.48% - --------------------------------------------------------------------------------
10-Year Performance
Chase Vista Lipper New York New York Tax Free Lehman Muni Tax Exempt Muni Debt Income Fund Bond Index Funds Average 8/90 9550 10000 10000 8/91 10687.1 11179.7 11168.9 8/92 12136.9 12429.9 12559.3 8/93 13883.9 13902.9 14167.4 8/94 13763.5 13923.2 13982.7 8/95 14699.9 15158.1 14932.1 8/96 15316.4 15950.5 15599.1 8/97 16672.2 17428.3 17011.7 8/98 18178 18936.1 18470.6 8/99 17886.7 19030.4 18176.6 8/00 18914 20316 19156
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 index does not include sales charges, but includes reinvestment of all distributions. Comparison of Fund performance to the Lehman New York Municipal Bond Index is not presented as the Index lacks 10 years of history. 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 August 31, 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 7.83% (Class A Shares, without sales charges) for the year ended August 31, 2000. This compares to the return of 7.34% by the Lehman California Intermediate Municipal Bond Index. How the Fund Was Managed As the reporting year began, the management allowed the Fund's duration (a measure of interest-rate sensitivity) to shorten relative to its peer group, and this proved beneficial in the rising interest rate environment of late 1999. By the beginning of 2000, the Fund had already begun lengthening duration through its purchase of bonds in the 10- to 15-year range. As these bonds became the focus of attention for non-traditional insurance buyers in early 2000, the Fund performed very well. In the spring, the management team had begun investing cash in higher-quality bonds issued by Puerto Rico and the US Virgin Islands. These bonds, which enjoy special tax-free status in all 50 states, began to trade in line with California bonds given the extreme lack of California supply, and the management team took the opportunity to book significant profits. As the reporting year came to a close, the management team began to extend duration again, moving out the curve to buy zero coupon bonds as spreads relative to traditional municipals were wide. This helped performance significantly in the summer as the lack of overall supply led to a generally inactive market. Where the Fund May Be Headed In the management team's view, the slowdown in the U.S. economy is real and this, combined with a technical downturn in Treasuries as the buyback program takes a breather until February, may create an opportunity in lower quality, lower coupon bonds. The management team is therefore extending duration (and interest-rate sensitivity) a bit as new supply comes on the market and waiting for the moment when quality spreads decompress sufficiently to make it worthwhile on a yield basis to reverse the strategy that was so successful in the past reporting year. 6 CHASE VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND As of August 31, 2000 (Unaudited) Average Annual Total Returns
Since Inception 1 Year 5 Years 7/16/93 - -------------------------------------------------------------------------------- Class A Shares Without Sales Charge 7.83% 5.63% 5.23% With Sales Charge 2.99% 4.66% 4.55% - --------------------------------------------------------------------------------
Life of Fund Performance
Chase Vista Lehman California Lipper California California Intermediate Lehman Muni Intermediate Intermediate Muni Debt Tax Free Fund Bond Index Muni Bond Index Funds Avg. 7/93 9550 10000 10000 10000 8/94 9695.26 10205 10321 10253.1 8/95 10427.3 11110.2 11235.5 10911.1 8/96 10947.4 11691 11725.2 11379.9 8/97 11763.7 12774.2 12727.8 12215.7 8/98 12681.5 13879.2 13690.8 13051.6 8/99 12717.2 13948.4 13931.1 13132.3 8/00 13734 14890 14954 13989
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 Fund is currently waiving fees. The waiver may be terminated, which would reduce performance. 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 August 31, 2000 (Amounts in thousands)
Principal Amount Issuer Value - ---------------------------------------------------------------------------------------- Long-Term Municipal Securities -- 100.8% - ---------------------------------------------------------------------------------------- California -- 7.1% $ 150 California Educational Facilities Authority, Pepperdine University, Rev., -, 7.20%, 11/01/00 $ 154 150 California State, Public Works Board, Regents of The University of California, Ser. A, Rev., -, 7.00%, 09/01/00 153 1,000 Fullerton University Foundation, California, Auxiliary Organization, Ser. A, Rev., 5.75%, 07/01/30 1,029 2,800 South Orange County, California, Public Financing Authority, Special Tax, Senior Lien, Ser. A, *, 6.20%, 09/01/13 2,993 ------- 4,329 Colorado -- 3.5% 2,000 Denver, Colorado, City & County Airport, Ser. A, Rev., 6.00%, 11/15/17 2,091 Connecticut -- 2.5% 1,700 Mashantucket Western Pequot Tribe, Connecticut, Special Obligation, Sub. Ser. A, Rev., 5.50%, 09/01/28 1,531 Illinois -- 4.6% 75 Chicago, Illinois, O'Hare International Airport, Ser. A, Rev., 7.50%, 01/01/03 77 2,425 Regional Transportation Authority, Illinois, Rev., 6.25%, 07/01/15 2,686 ------- 2,763 Louisiana -- 5.2% 3,000 Louisiana Local Government Environment Facilities, Community Development Authority, Capital Projects & Equipment Acquisition Program, Rev., +, 6.55%, 09/01/25 3,125 Maryland -- 0.1% 50 Maryland State, Community Development Administration, Department of Housing & Community Development, Single Family Program, Second Ser., Rev., 7.60%, 04/01/23 51 Massachusetts -- 1.8% 1,000 New England Education Loan Marketing Corp., Massachusetts Student Loan, Sub-Issue H, Rev., 6.90%, 11/01/09 1,111 Michigan -- 2.6% 1,000 Michigan State, Housing Development Authority, Rental Housing, Ser. B, Rev., 7.55%, 04/01/23 1,031 500 Wayne County, Michigan, Building Authority, Ser. A, GO, -, 8.00%, 03/01/02 535 ------- 1,566 Missouri -- 1.3% 720 Sikeston, Missouri, Electric, Rev., 6.00%, 06/01/16 781 Nevada -- 0.1% 70 Nevada Housing Division, Single Family Housing, Ser. A-3, Rev., 8.20%, 10/01/19 73 New Hampshire -- 5.7% 3,240 Manchester, New Hampshire, Housing & Redevelopment Authority, Ser. A, Rev., 6.75%, 01/01/15 3,450
See notes to financial statements. 8 CHASE VISTA TAX FREE INCOME FUND Portfolio of Investments (Continued) As of August 31, 2000 (Amounts in thousands)
Principal Amount Issuer Value - ------------------------------------------------------------------------------------ Long-Term Municipal Securities -- Continued - ------------------------------------------------------------------------------------ New Jersey -- 9.9% $3,455 Middletown Township, New Jersey, Board of Education, GO, *, 5.80%, 08/01/20 $ 3,563 1,500 New Jersey State, Educational Facilities Authority, Fairleigh Dickinson University, Ser. G, Rev., 5.70%, 07/01/28 1,381 1,000 New Jersey State, Transportation Trust Fund Authority, Transportation Systems, Ser. A, Rev., 5.75%, 06/15/15 1,061 ------- 6,005 New York -- 26.3% 440 New York City, New York, IDA, Civic Facility, Mt. St. Vincent College, Rev., @ 7.00%, 05/01/08 470 2,500 New York City, New York, IDA, IDR, Brooklyn Navy Yard Cogen Partners Project, Rev., 5.75%, 10/01/36 2,288 2,450 New York City, New York, Ser. A, GO, 6.25%, 08/01/09 2,672 2,000 New York State, Dorm Authority, City University System, 3rd General Reserve, Ser. 2, Rev., 5.00%, 07/01/18 1,907 5,000 Port Authority of New York & New Jersey, Consolidated Bonds 93rd Ser., Rev., 6.13%, 06/01/94 5,404 1,500 Port Authority of New York & New Jersey, Consolidated Bonds 114th Ser., Rev., 4.75%, 08/01/33 1,305 2,000 Utica, New York, IDA, Civic Facility, Munson-Williams- Proctor Institute Project, Ser. A, Rev., 5.38%, 07/15/19 1,948 ------- 15,994 Ohio -- 7.4% 4,000 Cleveland, Ohio, Public Power System, First Mortgage, Ser. A, Rev., *, -, 7.00%, 11/15/04 4,460 Oklahoma -- 3.5% 1,995 Oklahoma Housing Finance Agency, Single Family Housing, Ser. B-2, Rev., 6.80%, 09/01/26 2,118 Pennsylvania -- 4.9% 3,000 Delaware Valley, Pennsylvania, Regional Finance Authority, Local Government, Ser. A, Rev., 5.50%, 08/01/28 2,989 Puerto Rico -- 6.4% 1,000 Puerto Rico Commonwealth, Highway & Transportation Authority, Ser. B, Rev., 6.00%, 07/01/39 1,052 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 2,724 ------ 3,853 South Carolina -- 0.4% 250 South Carolina State, Housing Finance & Development Authority, Multi-Family Housing, Fairway Apartments Project, Rev., 7.63%, 04/01/33 257 South Dakota -- 0.2% 100 South Dakota Housing Development Authority, Homeownership Mortgage, Ser. A, Rev., 5.88%, 05/01/12 103
See notes to financial statements. 9 CHASE VISTA TAX FREE INCOME FUND Portfolio of Investments (Continued) As of August 31, 2000 (Amounts in thousands)
Principal Amount Issuer Value - --------------------------------------------------------------------------------------- Long-Term Municipal Securities -- Continued - --------------------------------------------------------------------------------------- Texas -- 1.7% $ 1,000 Dallas County, Texas, Utilities & Reclamation District, Ser. B, GO, 5.88%, 02/15/29 $ 1,010 Utah -- 0.4% 250 Utah State, Board of Regents, Student Loan, Ser. F, Rev., 7.45%, 11/01/08 256 Virgin Islands -- 4.7% 3,000 Virgin Islands Public Finance Authority, Senior Lien, Ser. A, Rev., 5.50%, 10/01/22 2,825 Washington -- 0.5% 250 Washington State, Public Power Supply System, Nuclear Project No. 1, Ser. B, Rev., 7.25%, 07/01/09 283 - --------------------------------------------------------------------------------------- Total Long-Term Municipal Securities 61,024 (Cost $60,500) - --------------------------------------------------------------------------------------- Short-Term Investments -- 1.6% - --------------------------------------------------------------------------------------- Shares Money Market Funds -- 1.6% -------------------------- 311 Provident Municipal Cash Money Market Fund 311 657 Provident Municipal Money Market Fund 657 --------------------------------------------------------------------- Total Money Market Funds 968 (Cost $968) - --------------------------------------------------------------------------------------- Total Investments -- 102.4% $61,992 (Cost $61,468) - ---------------------------------------------------------------------------------------
See notes to financial statements. 10 - -------------------------------------------------------------------------------- CHASE VISTA NEW YORK TAX FREE INCOME FUND Portfolio of Investments - -------------------------------------------------------------------------------- As of August 31, 2000 (Amounts in thousands)
Principal Amount Issuer Value - ----------------------------------------------------------------------------------------- Long-Term Municipal Securities -- 96.1% - ----------------------------------------------------------------------------------------- New York -- 72.3% $ 550 Monroe County, New York, IDA, Public Improvement, Canal Ponds Park, Ser. A, Rev., 7.00%, 06/15/13 $ 580 1,000 Nassau County, New York, Ser. E, GO, 7.00%, 03/01/04 1,063 450 New York City, New York, IDA, Civic Facility, Mt. St. Vincent College, Rev., @, 7.00%, 05/01/08 481 1,430 New York City, New York, IDA, Civic Facility, New York Blood Center Inc. Project, Rev., -, 7.20%, 05/01/04 1,561 1,500 New York City, New York, IDA, Civic Facility, YMCA Greater New York Project, Rev., 5.80%, 08/01/16 1,515 3,010 New York City, New York, IDA, IDR, Brooklyn Navy Yard Cogen Partners Project, Rev., 6.20%, 10/01/22 3,016 3,000 New York City, New York, Municipal Water Finance Authority, Water & Sewer Systems, Ser. A, Rev., 5.75%, 06/15/31 3,041 130 New York City, New York, Municipal Water Finance Authority, Water & Sewer Systems, Ser. A, Rev., -, 7.00%, 06/15/01 134 605 New York City, New York, Municipal Water Finance Authority, Water & Sewer Systems, Ser. A, Rev., 7.00%, 06/15/09 623 160 New York City, New York, Ser. F, GO, 8.25%, 11/15/02 169 1,000 New York Convention Center, Operating Corp., Yale Building Acquisition Project, COP, 6.50%, 12/01/04 1,013 3,000 New York State, Dorm Authority, City University System, 3rd General Reserve, Ser. 2, Rev., 5.00%, 07/01/17 2,805 3,000 New York State, Dorm Authority, City University System, 3rd General Reserve, Ser. 2, Rev., 5.00%, 07/01/18 2,860 3,565 New York State, Dorm Authority, City University System, Ser. A, Rev., 5.75%, 07/01/13 3,823 3,500 New York State, Dorm Authority, New York University, Ser. A, Rev., 5.75%, 07/01/16 3,694 2,400 New York State, Dorm Authority, Niagara Nursing Home, Rev., 5.60%, 08/01/37 2,375 2,500 New York State, Energy Research & Development Authority, Electric Facilities, Lilco Project, Ser. B, Rev., 5.30%, 11/01/23 2,315 705 New York State, Environmental Facilities Corp., PCR, State Water Revolving Fund, Ser. A, Rev., 7.25%, 06/15/10 734 300 New York State, Housing Finance Agency, Multi-Family Housing, Ser. A, Rev., 6.95%, 08/15/12 314 655 New York State, Housing Finance Agency, Rev., 8.00%, 11/01/08 671 690 New York State, Medical Care Facilities Finance Agency, Rev., 7.88%, 08/15/20 706 1,000 New York State, Municipal Bond Bank Agency, Special Program, Buffalo, Ser. A, Rev., 6.88%, 03/15/06 1,038 3,035 Niagara, New York, Frontier Transportation Authority, Greater Buffalo International Airport, Ser. B, Rev., 5.75%, 04/01/04 3,151 1,000 Oneida-Herkimer, New York, Solid Waste Management Authority, Solid Waste Systems, Rev., 5.50%, 04/01/11 1,046
See notes to financial statements. 11 CHASE VISTA NEW YORK TAX FREE INCOME FUND Portfolio of Investments (Continued) As of August 31, 2000 (Amounts in thousands)
Principal Amount Issuer Value - ------------------------------------------------------------------------------------- Long-Term Municipal Securities -- Continued - ------------------------------------------------------------------------------------- New York -- Continued $ 5,000 Port Authority of New York & New Jersey, Consolidated Bonds 93rd Ser., Rev., 6.13%, 06/01/94 $ 5,403 3,000 Port Authority of New York & New Jersey, Special Obligation, 3rd Installment, Special Project, KIAC-4, Rev., 7.00%, 10/01/07 3,133 4,500 Suffolk County, New York, IDA, IDR, Nissequogue Cogen Partners Facility, Rev., 5.50%, 01/01/23 3,853 700 Utica, New York, Public Improvement, GO, 6.00%, 01/15/11 735 675 Utica, New York, Public Improvement, GO, 6.00%, 01/15/12 703 295 Utica, New York, Public Improvement, GO, 6.10%, 01/15/13 307 295 Utica, New York, Public Improvement, GO, 6.20%, 01/15/14 307 320 Utica, New York, Public Improvement, GO, 6.25%, 01/15/15 332 1,150 Westchester County, New York, GO, -, 6.70%, 11/01/06 1,293 480 Westchester County, New York, IDA, AGR Realty Co. Project, Rev., -, 5.75%, 01/01/02 484 2,000 Westchester County, New York, IDA, Civic Facility, Children's Village Project, Ser. A, Rev., 5.30%, 03/15/14 1,966 1,000 Westchester County, New York, IDA, Civic Facility, Rippowam-Cisqua School Project, Rev., 5.75%, 06/01/29 989 2,000 Westchester County, New York, IDA, Resource Recovery, Resco Co. Project, Ser. A, Rev., 5.70%, 07/01/08 2,086 ------ 60,319 Puerto Rico -- 11.7% 3,500 Puerto Rico Commonwealth, Public Improvement, GO, 6.00%, 07/01/29 3,618 2,500 Puerto Rico Electric Power Authority, Ser. HH, Rev., 5.25%, 07/01/29 2,435 2,000 Puerto Rico Industrial, Medical & Environmental PCFFA, Special Facilities, American Airlines, Ser. A, Rev., 6.45%, 12/01/25 2,089 1,500 Puerto Rico Municipal Finance Agency, Ser. A, GO, 6.00%, 08/01/15 1,635 ------ 9,777 Virgin Islands -- 12.1% 4,000 Virgin Islands Public Finance Authority, Gross Receipts, Taxes Lien Notes, Ser. A, Rev., 6.38%, 10/01/19 4,117 1,150 Virgin Islands Public Finance Authority, Matching Fund Lien Notes, Ser. A, Rev., -, 7.25%, 10/01/02 1,242 5,000 Virgin Islands Public Finance Authority, Senior Lien, Ser. A, Rev., 5.50%, 10/01/22 4,707 ------ 10,066 - ------------------------------------------------------------------------------------- Total Long-Term Municipal Securities 80,162 (Cost $78,993) - -------------------------------------------------------------------------------------
See notes to financial statements. 12 CHASE VISTA NEW YORK TAX FREE INCOME FUND Portfolio of Investments (Continued) As of August 31, 2000 (Amounts in thousands)
Shares Issuer Value - --------------------------------------------------------------- Short-Term Investment -- 0.4% - --------------------------------------------------------------- Money Market Fund -- 0.4% ------------------------- 368 Provident New York Money Market Fund $ 368 (Cost $368) - --------------------------------------------------------------- Total Investments -- 96.5% $80,530 (Cost $79,361) - ---------------------------------------------------------------
Original Notional Notional Value at Unrealized Number of Expiration Value 08/31/00 Appreciation Contracts Description Date (USD) (USD) (USD) - ------------------------------------------------------------------------------------------------------ Long Futures Outstanding - ------------------------ 53 U.S. Treasury Bonds December, 2000 $5,281 $5,323 $ 42
See notes to financial statements. 13 - -------------------------------------------------------------------------------- CHASE VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND Portfolio of Investments - -------------------------------------------------------------------------------- As of August 31, 2000 (Amounts in thousands)
Principal Amount Issuer Value - -------------------------------------------------------------------------------------- Long-Term Municipal Securities -- 98.1% - -------------------------------------------------------------------------------------- California -- 86.0% $ 250 Bell Community Redevelopment Agency, California, Bell Redevelopment Project Area, Ser. B, Tax Allocation, 6.30%, 11/01/13 $ 269 750 California Educational Facilities Authority, Stanford University, Ser. P, Rev., 5.25%, 12/01/13 796 600 California State, GO, -, 6.25%, 10/01/02 636 250 California State, Public Works Board, Ser. A, Rev., 6.00%, 09/01/01 255 1,850 Contra Costa, California, Water District, Ser. G, Rev., *, 5.75%, 10/01/14 1,949 1,000 Fallbrook, California, Unified High School District, San Diego County, GO, @, 5.38%, 09/01/12 1,074 750 Foothill/Eastern Corridor Agency, California Toll Road, Rev., 5.00%, 01/15/06 764 100 Fullerton University Foundation, California, Auxiliary Organization, Ser. A, Rev., 5.50%, 07/01/10 109 100 Fullerton University Foundation, California, Auxiliary Organization, Ser. A, Rev., 5.50%, 07/01/11 109 200 Glendora, California, Unified School District, Capital Appreciation, Ser. A, +, GO, 0.00%, 09/01/15 92 570 Golden West Schools Financing Authority, California, Ser. A, Rev., 5.80%, 02/01/16 622 475 Los Angeles County, California, Transportation Commission, Sales Tax, Proposition C, 2nd Ser., Ser. A, Rev., 5.88%, 07/01/02 491 300 Los Angeles, California, American Academy of Dramatic Arts, Ser. A, COP, 4.70%, 11/01/30 303 125 Los Angeles, California, Unified School District, Ser. A, GO, 6.00%, 07/01/15 140 25 Los Angeles, California, Unified School District, Ser. B, GO, 5.38%, 07/01/12 26 560 Northern California Power Agency, Public Power, Ser. A, 5.80%, 07/01/09 622 340 Northern California Power Agency, Public Power, Ser. A, -, 5.80%, 07/01/09 378 250 Oakland, California, State Building Authority, Elihu M. Harris, Ser. A, Rev., 5.25%, 04/01/09 267 250 Orange County, California, Local Transportation Authority, Sales Tax, First Ser., Measure M, Rev., 5.60%, 02/15/02 256 500 Port Oakland, California, Ser. K, Rev., 5.25%, 11/01/07 525 35 Richmond, California, Wastewater, Rev., 5.20%, 08/01/11 37 250 Sacramento County, California, Sanitation District, Financing Authority, Ser. A, Rev., 5.25%, 12/01/12 265 150 Sacramento County, California, Sanitation District, Financing Authority, Ser. A, Rev., 5.75%, 12/01/10 167 110 Sacramento, California, City Financing Authority, Capital Improvements, Rev., 4.95%, 06/01/13 112 20 Sacramento, California, City Unified School District, Ser. A, GO, 5.00%, 07/01/02 20 900 Sacramento, California, Public Facilities Project, COP, 6.00%, 07/01/12 927
See notes to financial statements. 14 CHASE VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND Portfolio of Investments (Continued) As of August 31, 2000 (Amounts in thousands)
Principal Amount Issuer Value - -------------------------------------------------------------------------------------- Long-Term Municipal Securities -- Continued - -------------------------------------------------------------------------------------- California -- Continued $ 515 San Bruno Park, California, School District, Capital Appreciation, Ser. B., GO, 0.00%, 08/01/14 $ 255 600 San Bruno Park, California, School District, Capital Appreciation, Ser. B., GO, 0.00%, 08/01/15 279 500 San Francisco, California, City & County Public Utilities Commission, Ser. A, Rev., 6.25%, 11/01/07 563 105 San Francisco, California, City & County Redevelopment Agency, Hotel Tax, Rev., -, 6.75%, 07/01/04 117 145 San Jose, California, Unified School District, Santa Clara County, Capital Appreciation, Ser. A, GO, 0.00%, 08/01/13 77 110 San Marcos, California, Public Facilities Authority, Custody Receipts, Rev., -, 0.00%, 07/01/13 59 250 San Mateo County, California, Joint Powers Authority, Capital Projects Program, Rev., 6.50%, 07/01/15 293 1,000 Santa Clara County, California, Financing Authority, Ser. A, Rev., 5.75%, 11/15/13 1,104 1,200 South Orange County, California, Public Financing Authority, Special Tax, Senior Lien, Ser. A, 6.20%, 09/01/13 1,282 135 Southern California Public Power Authority, Transmission Project, Capital Appreciation, Rev., 0.00%, 07/01/06 105 1,000 University of California, UC Medical Center, Rev., 10.00%, 07/01/06 1,290 ------- 16,635 Puerto Rico -- 10.0% 405 Puerto Rico Commonwealth, GO, 5.30%, 07/01/04 420 100 Puerto Rico Commonwealth, GO, 5.50%, 07/01/01 101 420 Puerto Rico Commonwealth, Highway & Transportation Authority, Ser. W, Rev., 5.50%, 07/01/15 442 115 Puerto Rico Commonwealth, Public Improvement, GO, 5.00%, 07/01/07 119 300 Puerto Rico Electric Power Authority, Ser. AA, Rev., 4.80%, 07/01/01 302 500 Puerto Rico Municipal Finance Agency, Ser. A, GO, 5.75%, 08/01/13 541 ------- 1,925 Virgin Islands -- 2.1% 400 Virgin Islands Public Finance Authority, Gross Receipts, Taxes Lien Notes, Ser. A, Rev., 5.63%, 10/01/10 409 - --------------------------------------------------------------------------------------- Total Long-Term Municipal Securities 18,969 (Cost $18,211) - ---------------------------------------------------------------------------------------
See notes to financial statements. 15 CHASE VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND Portfolio of Investments (Continued) As of August 31, 2000 (Amounts in thousands)
Principal Amount Issuer Value - ---------------------------------------------------------------------------------------- Short-Term Investments -- 1.6% - ---------------------------------------------------------------------------------------- Municipal Securities--1.0% -------------------------- California -- 1.0% $100 California PCFA, PCR, Pacific Gas & Electric, Ser. F, Rev., FRDO, 3.40%, 09/01/00 $ 100 100 Los Angeles, California, Regional Airports Improvement Corp., Terminal Facility, Los Angeles International Airport, Rev., FRDO, 4.45%, 09/01/00 100 ----------------------------------------------------------------------- Total Municipal Securities 200 (Cost $200) ----------------------------------------------------------------------- Shares Money Market Fund -- 0.6% ------------------------- 109 Provident California Money Market Fund 109 (Cost $109) ----------------------------------------------------------------------- Total Short-Term Investments 309 (Cost $309) - ----------------------------------------------------------------------------------------- Total Investments -- 99.7% $19,278 (Cost $18,520) - -----------------------------------------------------------------------------------------
Original Notional Notional Value at Unrealized Number of Expiration Value 08/31/00 Appreciation Contracts Description Date (USD) (USD) (USD) - ------------------------------------------------------------------------------------------------ Long Futures Outstanding - ------------------------ 2 U.S. Treasury Bonds December, 2000 $199 $201 $ 2
INDEX: + -- When issued or delayed delivery security. * -- All or portion of this security is segregated for when issued or delayed delivery securities. - - -- Security is prerefunded or escrowed to maturity. The maturity date shown is the date of the prerefunded call. @ -- All or a portion of the security is segregated for futures. COP -- Certificates of Participation. Dorm -- Dormitory. FRDO -- Floating Rate Demand Obligation. The maturity date shown is the next interest reset date. The interest rate shown is the rate in effect at August 31, 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. Ser. -- Series. See notes to financial statements. 16 - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES August 31, 2000 - -------------------------------------------------------------------------------- (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) ..... $61,992 $80,530 $19,278 Other assets ................................. -- 1 -- Receivables: Interest .................................... 867 1,245 280 Fund shares sold ............................ 1,114 2,078 -- Margin account for futures contracts ........ 23 38 1 - -------------------------------------------------------------------------------------------- Total Assets .............................. 63,996 83,892 19,559 - -------------------------------------------------------------------------------------------- LIABILITIES: Payables: Investment securities purchased ............. 3,120 -- 90 Fund shares redeemed ........................ 163 249 72 Dividends ................................... 70 89 34 Accrued liabilities: (Note 2) Investment advisory fees .................... 3 7 -- Administration fees ......................... 8 10 -- Shareholder servicing fees .................. 7 9 -- Distribution fees ........................... 7 8 -- Custody fees ................................ 6 14 7 Other ....................................... 54 47 27 - -------------------------------------------------------------------------------------------- Total Liabilities ......................... 3,438 433 230 - -------------------------------------------------------------------------------------------- NET ASSETS: Paid in capital .............................. 60,627 83,851 18,531 Accumulated undistributed (distributions in excess of) net investment income ........................ (78) (53) 186 Accumulated net realized loss on investment and futures transactions .......... (515) (1,550) (148) Net unrealized appreciation of investments and futures contracts ......... 524 1,211 760 - -------------------------------------------------------------------------------------------- Net Assets ................................ $60,558 $83,459 $19,329 - -------------------------------------------------------------------------------------------- Shares of beneficial interest outstanding ($.001 par value; unlimited number of shares authorized) Class A Shares ............................... 4,047 6,237 1,934 Class B Shares ............................... 890 1,095 -- Class A: Net asset value and redemption price per share (net assets/ shares outstanding) ................................. $ 12.28 $ 11.39 $ 10.00 Maximum offering price per share (net asset value per share/95.5%) ............ $ 12.86 $ 11.93 $ 10.47 Class B: Net asset value and maximum offering price per share (net assets/ shares outstanding)* ......................... $ 12.22 $ 11.36 $ -- Cost of investments ........................... $61,468 $79,361 $18,520 - --------------------------------------------------------------------------------------------
*Redemption may be subject to contingent deferred sales charge. See notes to financial statements. 17 - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS For the year ended August 31, 2000 - -------------------------------------------------------------------------------- (Amounts in Thousands)
New York California Tax Free Intermediate Tax Free Income Tax Free Income Fund Fund Fund - ----------------------------------------------------------------------------------- INTEREST INCOME: (Note 1C) ............... $3,525 $5,202 $ 985 - ----------------------------------------------------------------------------------- EXPENSES: (Note 2) Investment advisory fees ................ 190 270 59 Administration fees ..................... 95 135 30 Shareholder servicing fees .............. 159 225 50 Distribution fees ....................... 218 291 50 Custodian fees .......................... 67 115 47 Printing and postage .................... 24 27 2 Professional fees ....................... 33 32 19 Registration expenses ................... 25 3 3 Transfer agent fees ..................... 125 121 30 Trustees' fees .......................... 3 5 1 Other ................................... 3 16 18 - ----------------------------------------------------------------------------------- Total expenses ....................... 942 1,240 309 - ----------------------------------------------------------------------------------- Less amounts waived (Note 2E) ........... 360 445 189 Less earnings credits (Note 2F) ......... 1 1 -- - ----------------------------------------------------------------------------------- Net expenses ......................... 581 794 120 - ----------------------------------------------------------------------------------- Net investment income ............... 2,944 4,408 865 - ----------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on: Investments ............................ (585) (1,296) (148) Futures transactions ................... 70 54 -- Change in net unrealized appreciation/ depreciation of: Investments ............................ 1,038 1,145 737 Futures contracts ...................... -- 42 2 - ----------------------------------------------------------------------------------- Net realized and unrealized gain (loss) on investments and futures transactions ............................ 523 (55) 591 - ----------------------------------------------------------------------------------- Net increase in net assets from operations ......................... $3,467 $4,353 $1,456 - -----------------------------------------------------------------------------------
18 See notes to financial statements. - -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS For the periods indicated (unaudited) - -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS For the year ended August 31, (Amounts in Thousands) See notes to financial statements.
Tax Free Income Fund ----------------------- 2000 1999 - ------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income .................................... $ 2,944 $ 3,097 Net realized gain (loss) on investments and futures transactions ..................................... (515) 392 Change in net unrealized appreciation/ depreciation of investments and futures contracts ................................................ 1,038 (4,490) - ------------------------------------------------------------------------------------- Increase (decrease) in net assets from operations ............................................. 3,467 (1,001) - ------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: Class A ................................................. (2,485) (2,576) Class B ................................................. (460) (520) Net realized gain on investment transactions: Class A ................................................. (66) -- Class B ................................................. (15) -- - ------------------------------------------------------------------------------------- Total distributions to shareholders .................... (3,026) (3,096) - ------------------------------------------------------------------------------------- Decrease from capital share transactions (Note 8) ......... (9,934) (2,228) - ------------------------------------------------------------------------------------- Total decrease in net assets ........................... (9,493) (6,325) NET ASSETS: Beginning of period ...................................... 70,051 76,376 - ------------------------------------------------------------------------------------- End of period ............................................ $60,558 $70,051 - ------------------------------------------------------------------------------------- New York California Tax Free Intermediate Income Fund Tax Free Fund ------------------------------------------------ 2000 1999 2000 1999 - -------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income .................................... $ 4,408 $ 5,279 $ 865 $ 949 Net realized gain (loss) on investments and futures transactions ..................................... (1,242) (71) (148) 219 Change in net unrealized appreciation/ depreciation of investments and futures contracts ................................................ 1,187 (6,828) 739 (1,056) - -------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from operations ............................................. 4,353 (1,620) 1,456 112 - -------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: Class A ................................................. (3,858) (4,734) (868) (949) Class B ................................................. (543) (542) -- -- Net realized gain on investment transactions: Class A ................................................. (180) (960) (217) (316) Class B ................................................. (33) (134) -- -- - -------------------------------------------------------------------------------------------------------------- Total distributions to shareholders .................... (4,614) (6,370) (1,085) (1,265) - -------------------------------------------------------------------------------------------------------------- Decrease from capital share transactions (Note 8) ......... (17,897) (16,066) (2,031) (1,854) - -------------------------------------------------------------------------------------------------------------- Total decrease in net assets ........................... (18,158) (24,056) (1,660) (3,007) NET ASSETS: Beginning of period ...................................... 101,617 125,673 20,989 23,996 - -------------------------------------------------------------------------------------------------------------- End of period ............................................ $83,459 $101,617 $19,329 $20,989 - --------------------------------------------------------------------------------------------------------------
See notes to financial statements. 19 - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- 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 each 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. 20 NOTES TO FINANCIAL STATEMENTS (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 (or 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 August 31, 2000, the Funds had outstanding futures contracts as shown on their Portfolios of Investments. 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 21 NOTES TO FINANCIAL STATEMENTS (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 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 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 fees as outlined in Note 2.E. below. 22 NOTES TO FINANCIAL STATEMENTS (continued) 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 fees as outlined in Note 2.E. below. E. Waivers of fees -- For the year ended August 31, 2000, the Funds' vendors voluntarily waived fees for each of the Funds as follows (amounts in thousands):
TFI NYTFI CITF - --------------------------------------------------------------------- Investment Advisory ............ $159 $ 145 $ 59 Administration ................. -- -- 30 Shareholder Servicing........... 72 108 50 Distribution ................... 129 192 50 ---- ----- ----- $360 $ 445 $ 189 ==== ===== =====
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 is presented in the Statement of Operations as custodian fees. Custodian fees are subject to reduction by credits earned by each Fund, based on cash balances held by Chase as custodian. Such earnings credits are presented separately in the Statement of Operations. The Funds could have invested the cash balances utilized in connection with the earnings credit arrangements in income producing assets if they had not entered into such arrangements. 3. Investment Transactions The cost of purchases and proceeds from sales of investments (excluding short-term investments) for the year ended August 31, 2000, were as follows (amounts in thousands):
TFI NYTFI CITF - --------------------------------------------------------------------- Purchases ................ $26,980 $60,894 $21,411 Sales .................... 33,064 76,211 21,852
4. Federal Income Tax Matters For Federal income tax purposes, the cost and unrealized appreciation/ (depreciation) in value of the investment securities at August 31, 2000, are as follows (amounts in thousands):
TFI NYTFI CITF - -------------------------------------------------------------------------------- Aggregate cost ......................... $ 61,468 $ 79,361 $18,520 -------- -------- ------- Gross unrealized appreciation.......... $ 1,616 $ 2,254 $ 758 Gross unrealized depreciation.......... (1,092) (1,085) -- -------- -------- ------- Net unrealized appreciation/ (depreciation) ......................... $ 524 $ 1,169 $ 758 ======== ======== =======
At August 31, 2000, TFI, NYTFI and CITF had capital loss carryovers of $3,265, $683,958 and $103,805, respectively, which will be available to 23 NOTES TO FINANCIAL STATEMENTS (continued) offset capital gains arising through August 31, 2008. To the extent that any net capital loss carryovers are used to offset future capital gains, it is probable that the gains so offset will not be distributed to shareholders. 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 August 31, 2000, TFI invested approximately 26.3% of its net assets in issuers in New York State. The issuers' 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 year ended August 31, 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 ............... 2 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 August 31, 2000, nor at any time during the year then ended. 8. Subsequent Event Effective September 5, 2000, CAM changed its name to Chase Fleming Asset Management (USA) Inc. 24 NOTES TO FINANCIAL STATEMENTS (continued) 9. Capital Share Transactions Capital share transactions were as follows for the periods presented (amounts in thousands): Tax Free Income Fund
- ------------------------------------------------------------------------------------------------------- Class A Class B - ------------------------------------------------------------------------------------------------------- Amount Shares Amount Shares - ------------------------------------------------------------------------------------------------------- Year Ended August 31, 2000 - ------------------------------------------------------------------------------------------------------- Shares sold $ 40,997 3,449 $ 2,065 174 Shares issued in reinvestment of distributions 1,748 146 329 28 Shares redeemed (49,923) (4,190) (5,150) (434) - ------------------------------------------------------------------------------------------------------- Net decrease in Fund shares outstanding $ (7,178) (595) $(2,756) (232) =======================================================================================================
Year Ended August 31, 1999 - ------------------------------------------------------------------------------------------------------- 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) =======================================================================================================
New York Tax Free Income Fund
- ------------------------------------------------------------------------------------------------------- Class A Class B - ------------------------------------------------------------------------------------------------------- Amount Shares Amount Shares - ------------------------------------------------------------------------------------------------------- Year Ended August 31, 2000 - ------------------------------------------------------------------------------------------------------- Shares sold $ 26,202 2,373 $ 1,573 141 Shares issued in reinvestment of distributions 2,935 265 413 37 Shares redeemed (44,450) (4,016) (4,570) (414) - ------------------------------------------------------------------------------------------------------- Net decrease in Fund shares outstanding $(15,313) (1,378) $(2,584) (236) =======================================================================================================
Year Ended August 31, 1999 - ----------------------------------------------------------------------------------------------------- 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 =======================================================================================================
California Intermediate Tax Free Fund
- -------------------------------------------------------------------------- Amount Shares - -------------------------------------------------------------------------- Year Ended August 31, 2000 - -------------------------------------------------------------------------- Shares sold $ 653 67 Shares issued in reinvestment of distributions 591 61 Shares redeemed (3,275) (338) - -------------------------------------------------------------------------- Net decrease in Fund shares outstanding $(2,031) (210) ==========================================================================
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) ==========================================================================
25 - ------------------------------------------------------------------------------- CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
Tax Free Income Fund --------------------------------------------------------- Class A --------------------------------------------------------- Year Ended August 31, --------------------------------------------------------- 2000 1999 1998 1997 1996 --------- -------- -------- -------- -------- Per share operating performance Net asset value, beginning of period ..................................... $12.17 $12.89 $12.32 $11.84 $11.85 --------- -------- -------- -------- -------- Income from investment operations: Net investment income ................................................... 0.57 0.56 0.56 0.58 0.58 Net gains or losses on securities (both realized and unrealized) ........ 0.13 (0.72) 0.57 0.48 (0.01) --------- -------- -------- -------- -------- Total from investment operations ....................................... 0.70 (0.16) 1.13 1.06 0.57 --------- -------- -------- -------- -------- Less distributions: Dividends from net investment income .................................... 0.57 0.56 0.56 0.58 0.58 Distributions from capital gains ........................................ 0.02 -- -- -- -- --------- -------- -------- -------- -------- Total distributions .................................................... 0.59 0.56 0.56 0.58 0.58 --------- -------- -------- -------- -------- Net asset value, end of period .......................................... . $12.28 $12.17 $12.89 $12.32 $11.84 ========= ======== ======== ======== ======== Total return (1) ......................................................... 6.00% (1.33%) 9.38% 9.14% 4.88% Ratios/supplemental data: Net assets, end of period (millions) ..................................... $ 50 $ 56 $ 61 $ 63 $ 70 Ratios to average net assets: Expenses ................................................................ 0.75% 0.75% 0.80% 0.90% 0.90% Net investment income ................................................... 4.81% 4.41% 4.44% 4.78% 4.83% Expenses without waivers, reimbursements and earnings credits ........... 1.39% 1.37% 1.31% 1.29% 1.46% Net investment income without waivers, reimbursements and earnings credits ........................................................ 4.17% 3.79% 3.93% 4.39% 4.27% Portfolio turnover rate .................................................. 44% 102% 172% 147% 210% Tax Free Income Fund --------------------------------------------- Class B --------------------------------------------- Year Ended August 31, --------------------------------------------- 2000 1999 --------- -------- Per share operating performance Net asset value, beginning of period ..................................... $12.10 $12.82 --------- -------- Income from investment operations: Net investment income ................................................... 0.46 0.45 Net gains or losses on securities (both realized and unrealized) ........ 0.14 (0.72) --------- -------- Total from investment operations ....................................... 0.60 (0.27) --------- -------- Less distributions: Dividends from net investment income .................................... 0.46 0.45 Distributions from capital gains ........................................ 0.02 -- --------- -------- Total distributions .................................................... 0.48 0.45 --------- -------- Net asset value, end of period ........................................... $12.22 $12.10 ========= ======== Total return (1) ......................................................... 5.16% (2.23%) Ratios/supplemental data: Net assets, end of period (millions) ..................................... $ 11 $ 14 Ratios to average net assets: Expenses ................................................................ 1.64% 1.64% Net investment income ................................................... 3.92% 3.52% Expenses without waivers, reimbursements and earnings credits ........... 1.89% 1.87% Net investment income without waivers, reimbursements and earnings credits ........................................................ 3.67% 3.29% Portfolio turnover rate .................................................. 44% 102% Tax Free Income Fund --------------------------------------------- Class B --------------------------------------------- Year Ended August 31, --------------------------------------------- 1998 1997 1996 -------- -------- -------- Per share operating performance Net asset value, beginning of period ..................................... $12.25 $11.76 $11.77 -------- -------- -------- Income from investment operations: Net investment income ................................................... 0.45 0.48 0.49 Net gains or losses on securities (both realized and unrealized) ........ 0.57 0.48 (0.01) -------- -------- -------- Total from investment operations ....................................... 1.02 0.96 0.48 -------- -------- -------- Less distributions: Dividends from net investment income .................................... 0.45 0.47 0.49 Distributions from capital gains ........................................ -- -- -- -------- -------- -------- Total distributions .................................................... 0.45 0.47 0.49 -------- -------- -------- Net asset value, end of period ........................................... $12.82 $12.25 $11.76 ======== ======== ======== Total return (1) ......................................................... 8.45% 8.30% 4.10% Ratios/supplemental data: Net assets, end of period (millions) ..................................... $ 15 $ 14 $ 14 Ratios to average net assets: Expenses ................................................................ 1.64% 1.64% 1.65% Net investment income ................................................... 3.60% 4.04% 4.08% Expenses without waivers, reimbursements and earnings credits ........... 1.81% 1.79% 1.95% Net investment income without waivers, reimbursements and earnings credits ........................................................ 3.43% 3.89% 3.78% Portfolio turnover rate .................................................. 172% 147% 210%
(1) Total return figures do not include the effect of any sales load. See notes to financial statements. 26 FINANCIAL HIGHLIGHTS (continued)
New York Tax Free Income Fund ----------------------------------------------------------- Class A ----------------------------------------------------------- Year Ended August 31, ----------------------------------------------------------- 2000 1999 1998 1997 1996 --------- -------- -------- -------- -------- Per share operating performance Net asset value, beginning of period ................................... $11.36 $12.18 $11.80 $11.39 $11.47 --------- -------- -------- -------- -------- Income from investment operations: Net investment income ................................................. 0.56 0.53 0.54 0.56 0.56 Net gains or losses on securities (both realized and unrealized) ........................................ 0.06 (0.71) 0.50 0.43 (0.08) --------- -------- -------- -------- -------- Total from investment operations ..................................... 0.62 (0.18) 1.04 0.99 0.48 --------- -------- -------- -------- -------- Less distributions: Dividends from net investment income .................................. 0.56 0.53 0.54 0.56 0.56 Distributions from capital gains ...................................... 0.03 0.11 0.12 0.02 -- --------- -------- -------- -------- -------- Total distributions .................................................. 0.59 0.64 0.66 0.58 0.56 --------- -------- -------- -------- -------- Net asset value, end of period ......................................... $11.39 $11.36 $12.18 $11.80 $11.39 ========= ======== ======== ======== ======== Total return (1) ....................................................... 5.68% (1.60%) 9.03% 8.85% 4.20% Ratios/Supplemental Data: Net assets, end of period (millions) ................................... $ 71 $ 87 $ 111 $ 83 $ 96 Ratios to average net assets: Expenses .............................................................. 0.75% 0.75% 0.79% 0.90% 0.90% Net investment income ................................................. 5.03% 4.46% 4.52% 4.77% 4.76% Expenses without waivers, reimbursements and earnings credits ......... 1.30% 1.20% 1.21% 1.18% 1.27% Net investment income without waivers, reimbursements and earnings credits ...................................................... 4.48% 4.01% 4.10% 4.49% 4.39% Portfolio turnover rate ................................................ 70% 65% 91% 107% 156% New York Tax Free Income Fund ---------------------------------------------------------- Class B ---------------------------------------------------------- Year Ended August 31, ---------------------------------------------------------- 2000 1999 1998 1997 1996 -------- -------- ------- -------- ------ Per share operating performance Net asset value, beginning of period ................................... $11.34 $12.16 $11.76 $11.33 $11.41 ------ ------ ------ ------ ------ Income from investment operations: Net investment income ................................................. 0.46 0.43 0.44 0.46 0.47 Net gains or losses on securities (both realized and unrealized) ........................................ 0.05 (0.71) 0.51 0.43 (0.09) ------ ------ ------ ------ ------ Total from investment operations ..................................... 0.51 (0.28) 0.95 0.89 0.38 ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income .................................. 0.46 0.43 0.43 0.44 0.46 Distributions from capital gains ...................................... 0.03 0.11 0.12 0.02 -- ------ ------ ------ ------ ------ Total distributions .................................................. 0.49 0.54 0.55 0.46 0.46 ------ ------ ------ ------ ------ Net asset value, end of period ......................................... $11.36 $11.34 $12.16 $11.76 $11.33 ====== ====== ====== ====== ====== Total return (1) ....................................................... 4.66% (2.47%) 8.27% 8.03 3.46% Ratios/Supplemental Data: Net assets, end of period (millions) ................................... $ 12 $ 15 $ 15 $ 14 $ 14 Ratios to average net assets: Expenses .............................................................. 1.64% 1.64% 1.64% 1.64% 1.65% Net investment income ................................................. 4.13% 3.58% 3.68% 4.03% 4.01% Expenses without waivers, reimbursements and earnings credits ......... 1.80% 1.70% 1.71% 1.68% 1.76% Net investment income without waivers, reimbursements and earnings credits ...................................................... 3.97% 3.52% 3.61% 3.99% 3.90% Portfolio turnover rate ................................................ 70% 65% 91% 107% 156%
(1) Total return figures do not include the effect of any sales load. See notes to financial statements. 27 CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (continued) FINANCIAL HIGHLIGHTS (continued)
California Intermediate Tax Free Fund -------------------------------------- Year Ended August 31, -------------------------------------- 2000 1999 -------- -------- Per share operating performance Net asset value, beginning of period ............................................ $ 9.79 $10.29 -------- -------- Income from investment operations: Net investment income .......................................................... 0.42 0.41 Net gains or losses on securities (both realized and unrealized) ............... 0.31 (0.37) -------- -------- Total from investment operations .............................................. 0.73 0.04 -------- -------- Less distributions: Dividends from net investment income ........................................... 0.42 0.41 Distributions from capital gains ............................................... 0.10 0.13 -------- -------- Total distributions ........................................................... 0.52 0.54 -------- -------- Net asset value, end of period .................................................. $10.00 $ 9.79 ======== ======== Total return (1) ................................................................ 7.83% 0.28% Ratios/supplemental data: Net assets, end of period (millions) ............................................ $ 19 $ 21 Ratios to average net assets: Expenses ....................................................................... 0.60% 0.60% Net investment income .......................................................... 4.35% 3.99% Expenses without waivers, reimbursements and earnings credits .................. 1.55% 1.46% Net investment income without waivers, reimbursements and earnings credits ..... 3.40% 3.13% Portfolio turnover rate ......................................................... 116% 111% California Intermediate Tax Free Fund -------------------------------------- Year Ended August 31, -------------------------------------- 1998 1997 1996 -------- ------- ------- Per share operating performance Net asset value, beginning of period ............................................ $10.07 $ 9.81 $9.89 -------- ------- ------- Income from investment operations: Net investment income .......................................................... 0.45 0.46 0.48 Net gains or losses on securities (both realized and unrealized) ............... 0.32 0.26 0.01 -------- ------- ------- Total from investment operations .............................................. 0.77 0.72 0.49 -------- ------- ------- Less distributions: Dividends from net investment income ........................................... 0.45 0.33 0.48 Distributions from capital gains ............................................... 0.10 0.13 0.09 -------- ------- ------- Total distributions ........................................................... 0.55 0.46 0.57 -------- ------- ------- Net asset value, end of period .................................................. $10.29 $10.07 $9.81 ======== ======= ======= Total return (1) ................................................................ 7.81% 7.46% 5.00% Ratios/supplemental data: Net assets, end of period (millions) ............................................ $ 24 $ 26 $ 28 Ratios to average net assets: Expenses ....................................................................... 0.60% 0.60% 0.60% Net investment income .......................................................... 4.38% 4.65% 4.77% Expenses without waivers, reimbursements and earnings credits .................. 1.44% 1.33% 1.47% Net investment income without waivers, reimbursements and earnings credits ..... 3.54% 3.92% 3.90% Portfolio turnover rate ......................................................... 44% 66% 188%
(1) Total return figures do not include the effect of any sales load. See notes to financial statements. 28 - -------------------------------------------------------------------------------- REPORT OF INDEPENDENT ACCOUNTANTS - -------------------------------------------------------------------------------- To the Trustees and Shareholders of Mutual Fund Trust In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Chase Vista Tax Free Income Fund, Chase Vista New York Tax Free Income Fund and Chase Vista California Intermediate Tax Free Fund (separate portfolios of Mutual Fund Trust, hereafter referred to as the "Trust") at August 31, 2000, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2000 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP 1177 Avenue of the Americas New York, New York 10036 October 11, 2000 29 - -------------------------------------------------------------------------------- TAX LETTER (UNAUDITED) - -------------------------------------------------------------------------------- Chase Vista Tax Free Income Fund (TFI) Chase Vista New York Tax Free Income Fund (NYTFI) Chase Vista California Intermediate Tax Free Fund (CITF) - -------------------------------------------------------------------------------- Certain tax information regarding the Chase Vista Mutual Funds is required to be provided to shareholders based upon the Funds' income and distributions for the taxable year ended August 31, 2000. The information and distributions reported in this letter may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2000. The information necessary to complete your income tax returns for the calendar year ending December 31, 2000 will be received under separate cover. FOR THE FISCAL YEAR ENDED AUGUST 31, 2000: o The dividends paid from net investment income are 100.00%, 100.00% and 100.00% exempt from Federal income tax for TFI, NYTFI and CITF, respectively. o For shareholders who are subject to the Alternative Minimum Tax, the percentage of income from private activity bonds issued after August 7, 1986, which may be considered a tax preference item, was 13.57%, 20.04% and 4.79% for TFI, NYTFI and CITF, respectively. o Long-term capital gain distributions were $0.015 and $0.102 per share for TFI and CITF, respectively. 30 [This page intentionally left blank] [This page intentionally left blank] [This page intentionally left blank] - -------------------------------------------------------------------------------- CHASE VISTA TAX FREE FUNDS ANNUAL REPORT - -------------------------------------------------------------------------------- Investment Adviser, Administrator, Shareholder and Fund Servicing Agent and Custodian The Chase Manhattan Bank Distributor Vista Fund Distributors, Inc. Transfer Agent DST Systems, Inc. Legal Counsel Simpson Thacher & Bartlett Independent Accountants PricewaterhouseCoopers LLP Chase Vista Funds are distributed by Vista Fund Distributors, Inc., which is unaffiliated with The Chase Manhattan Bank. Chase and its respective affiliates receive compensation from Chase Vista Funds for providing investment advisory and other services. This report is submitted for the general information of the shareholders of the funds. It is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by a prospectus. To obtain a prospectus for any of the Chase Vista Funds, call 1-800-34-VISTA. The prospectus contains more complete information, including charges and expenses. Please read it carefully before you invest or send money. (C)The Chase Manhattan Corporation, 2000. All Rights Reserved. October 2000 [CHASE VISTA LOGO] CHASE VISTA FUNDS(SM) Chase Vista Funds Fulfillment Center 393 Manley Street West Bridgewater, MA 02379-1039 -----END PRIVACY-ENHANCED MESSAGE-----