-----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, J/aLk5XjhXPqOnMVJBoxR7aETuxjJ2ph4n1YgSxFSvcctLLZn1gVwYofk+PAnNjQ 2kFkVqDsWCnW9E0KxTWJTQ== 0000950146-98-001773.txt : 19981030 0000950146-98-001773.hdr.sgml : 19981030 ACCESSION NUMBER: 0000950146-98-001773 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980831 FILED AS OF DATE: 19981029 SROS: NONE 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: 98732777 BUSINESS ADDRESS: STREET 1: 1 CHASE MANHATTAN PLAZA STREET 2: 3RD FLOOR CITY: NEW YORK STATE: NY ZIP: 10081 MAIL ADDRESS: STREET 1: ONE CHASE SQUARE 7TH FLOOR CITY: ROCHESTER STATE: NY ZIP: 14643 N-30D 1 CHASE VISTA FUNDS ANNUAL REPORT [sidebar text] CHASE VISTA TAX FREE FUNDS [end sidebar text] [GRAPHIC OMITTED] [CHASE VISTA LOGO] CHASE VISTA FUNDS(SM) ANNUAL REPORT ---------------------------------------- Chase Vista.(SM) Setting the Global Standard. CHASE VISTA TAX FREE INCOME FUND CHASE VISTA NEW YORK TAX FREE INCOME FUND CHASE VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND August 31, 1998 Highlights During the reporting period, interest rates fell dramatically even though the U.S. economy continued to grow steadily. o As interest rates declined, many municipal bond issuers refinanced existing debt, creating a sharp increase in new issuance. o In the months ahead, the fundamentals for the municipal bond market appear favorable and we expect the ratio between Treasury and municipal bond yields to remain attractive. CONTENTS Chairman's Letter 3 Chase Vista Tax Free Income Fund 4 Fund Commentary o Portfolio of Investments Chase Vista New York Tax Free Income Fund 14 Fund Commentary o Portfolio of Investments Chase Vista California Intermediate Tax Free Fund 23 Fund Commentary o Portfolio of Investments Financial Statements 30 Notes to Financial Statements 33 Financial Highlights 38 - -------------------------------------------------------------------------------- INVESTMENTS IN THE FUNDS ARE NOT DEPOSITS OF, OR GUARANTEED OR ENDORSED BY, THE CHASE MANHATTAN BANK, AND THE SHARES ARE NOT INSURED BY THE FDIC, FEDERAL RESERVE BOARD OR ANY OTHER GOVERNMENT AGENCY. INVESTMENTS IN MUTUAL FUNDS INVOLVE RISK, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED. - -------------------------------------------------------------------------------- Chase Vista Tax Free Funds Chairman's Letter October 1, 1998 Dear Shareholder: We are pleased to present this annual report for Chase Vista Tax Free Income Fund, Chase Vista New York Tax Free Income Fund and Chase Vista California Intermediate Tax Free Fund for the year ended August 31, 1998. Inside you will find information on the performance of each fund along with a report from the portfolio management team. Interest Rates Trend Lower Despite Strong Economy During the period, interest rates fell dramatically even though the U.S. economy continued to grow steadily, fueled by high employment, rising wages and strong consumer confidence. In this environment most municipalities enjoyed higher-than-expected tax revenues due to favorable economic conditions. Since the economy did not overheat, the Federal Reserve maintained its neutral monetary policy, as it has for more than a year and a half. The Fed has not raised short-term interest rates since March, 1997 and has not lowered them since December, 1996. The decline in interest rates was largely due to two primary factors: benign domestic inflation and concerns over a slowdown in global economic growth brought on by economic and currency problems in southeast Asia and Russia. As interest rates declined, many municipalities refinanced existing debt, creating a sharp increase in new issuance. For 1998, the dollar amount of new bonds on the market is expected to exceed the new issuance record of $290 billion set in 1993. The increase in supply was largely responsible for the narrow difference in yield between U.S. Treasuries and municipal bonds. Over the period, yields on municipal bonds rose to approximately 90 percent of the yields on U.S. Treasuries. The historical difference is usually around 80 percent. During the flat tax scare in 1995, the ratio was 91%, which, in retrospect, proved to be an excellent entry level for investors. Looking ahead, our outlook for the tax-exempt fixed income market remains positive. Economic and currency problems in Asia continue to pose a serious threat to the global economy, which should keep interest rates trending lower. Moreover, inflation does not appear to be a problem going forward, even though the U.S. economy remains healthy. Given this backdrop, we would not be surprised to see the Federal Reserve lower short-term interest rates in the months ahead. Sincerely, /s/ Fergus Reid Fergus Reid 3 Chase Vista Tax Free Income Fund as of August 31, 1998 (unaudited) Fund Facts Objective Federal tax exempt income* Primary investments Municipal bonds Suggested investment time frame 3-5 Years minimum Market benchmark Lehman Municipal Bond Index Lipper Funds category General Municipal Debt Funds Average Class A Class B ------- ------- Inception date 9/8/87 11/4/93 Newspaper symbol TF Inc not listed Net assets $61 Million $15 Million Average maturity 26.3 years 26.3 years Average duration 8.6 years 8.6 years Average quality Aa/AA Aa/AA
* A portion of the Fund's income may be subject to the Alternative Minimum Tax, and some investors may be subject to certain state and local taxes. Average Maturity/Quality [Square Chart] Average Maturity/Quality: Long/High [End Square Chart] Source: Morningstar 4 Chase Vista Tax Free Income Fund as of August 31, 1998 (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 9.38% for the one-year period ended August 31, 1998 (Class A shares, without sales charges). This compares to a return of 8.20% for the Lipper General Municipal Debt Funds Average and 8.65% for the unmanaged Lehman Municipal Bond Index. How the Fund Was Managed The Fund benefited from the sharp decline in interest rates during the period. The drop in rates was largely due to a flight to quality among investors, as the economic and currency problems in southeast Asia once again fanned fears of economic uncertainty around the globe. While falling interest rates helped ignite a rally, it also led to a wave of refinancing and, in turn, a sharp increase in supply. This put some pressure on prices and caused yields to rise. We used the increase in supply to increase our investment in high quality issues with relatively attractive yields. Finally, the Fund's slightly higher-than-average duration throughout the period contributed significantly to performance due to the decline in rates. During the reporting period, long-term interest rates, as measured by the benchmark 30-year Treasury bond, declined from 6.61% to 5.26%. Where the Fund May Be Headed We continue to hold an optimistic outlook for the tax-exempt bond market. Fears of a slowing global economy brought on by the economic turmoil in Asia and Russia should prevent interest rates from rising significantly. In fact, we intend to use any upturn in interest rates as a potential opportunity to further extend duration. Additionally, the ratio between Treasury and municipal bond yields is likely to remain attractive since dealers are still having difficulty placing new issues. As always, we will continue to strive to provide shareholders with a relatively attractive yield while emphasizing a diversified portfolio among securities with high credit quality. 5 Chase Vista Tax Free Income Fund as of August 31, 1998 (unaudited) How Much of the Fund Was Invested [Pie Chart] Investments (91.9%) Cash/Other (8.1%) [End Pie Chart] Average Annual Total Returns This table shows the average annual total returns. This is where you can see the Fund's short-term performance, which, as with the stock markets, tends to be more volatile than the long-term trend.
1 Year 5 Years 10 Years ------ ------- --------- Class A Shares Without Sales Charge 9.38% 5.54% 8.92% With Sales Charge* 4.46% 4.58% 8.42% Class B Shares Without CDSC 8.45% 4.70% 8.48% With CDSC** 3.45% 4.37% 8.48%
Source: Lipper Analytical Services, Inc. Past performance is not predictive of future performance. Investment return and principal value will fluctuate with market conditions. When shares are redeemed, they may be worth more or less than their original cost. The Fund is currently waiving fees. This voluntary waiver may be modified or terminated at any time, which would reduce performance. * The maximum sales charge for A shares is 4.50%. ** Assumes a 5% CDSC for the one year period, a 2% CDSC for the five year period and a 0% CDSC for the ten year period. + The Fund commenced operations on 9/8/87. Class B Shares were introduced on 11/4/93. Investors should note that the information presented for B Shares prior to their introduction is based upon historical expenses of the predecessor Class A Shares, which are lower than the actual expenses of the B Shares. Additionally, annualized figures have been reinstated to reflect the maximum contingent deferred sales charge that applies to the Fund's B Shares. 6 Chase Vista Tax Free Income Fund as of August 31, 1998 (unaudited) 10-Year Performance This chart shows what the long-term growth would have been of a hypothetical $10,000 investment in the Chase Visa Tax Free Income Fund compared to its key benchmarks. This is where you see the Fund's long-term trend. This chart is for illustrative purposes only. [Mountain Chart]
Lipper General Chase Vista Lehman Muni Tax Free Muni Bond Debt Funds Income Fund Index Avg. 1988 9550 10000 10000 1989 10657.8 11098.1 11124.2 1990 11195.8 11811.2 11655.2 1991 12748.1 13204.5 13023.3 1992 14672.1 14681.1 14507.8 1993 17142 16421 16305.1 1994 16833.3 16444.9 16112.8 1995 17933.1 17903.5 17292.1 1996 18808.5 18839.5 18103.5 1997 20528 20584.9 19704.6 1998 22454 22385.7 21319
[End Mountain Chart] Source: Lipper Analytical Services, Inc. Past performance is not predictive of future performance. Investment return and principal value will fluctuate with market conditions. When shares are redeemed, they may be worth more or less than their original cost. This chart illustrates comparative performance for $10,000 invested in Class A shares of the Chase Vista Tax Free Income Fund, the Lehman Municipal Bond Index and the Lipper General Municipal Debt Funds Average from August 31, 1988 to August 31, 1998. The performance of the Fund assumes reinvestment of all dividends and capital gains and includes a 4.50% sales charge. The performance of the average and the index does not include a sales charge and has been adjusted to reflect reinvestment of all dividends and capital gains on securities included in the benchmark. The unmanaged Lehman Municipal Bond Index is a broad-based total return performance benchmark for the long-term, investment grade tax-exempt bond market. Bonds included in the Lehman Municipal Bond Index are representative of the market. An individual cannot invest in the index. The Lipper General Municipal Debt Funds Average represents the average performance of a universe of 258 actively-managed municipal bond funds. Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge. A portion of the Fund's income may be subject to the Alternative Minimum Tax, and some investors may be subject to certain state and local taxes. The Fund is currently waiving fees. This voluntary waiver may be modified or terminated at any time, which would reduce performance. 7 Chase Vista Tax Free Income Fund Portfolio of Investments August 31, 1998
Principal Amount Issuer Value - ---------------------------------------------------------------- Long Term Municipal Bonds -- 100.9% - ---------------------------------------------------------------- California -- 13.4% $ 150,000 California Board of Regents, UCLA, Educational Facilities Authority, Prerefunded, Rev., 7.00%, 09/01/00 $ 162,793 150,000 California Educational Facilities Authority, Pepperdine Univ., Rev., 7.20%, 11/01/15 164,130 4,000,000 California Statewide Community Development Authority, Sherman Oaks Project, Series A, Insured, Rev., 5.00%, 08/01/22 4,027,680 150,000 Orange County Water District, COP, 5.75%, 08/15/14 156,291 2,500,000 San Francisco, California, City & County Community International Airport, 2nd Series, Issue 18A, Rev., 5.25%, 05/01/12 2,633,600 2,800,000 South Orange County Public Financing Authority, Senior Lien, Series A, Insured, +, Special Tax Rev., 6.20%, 09/01/13 3,111,808 ---------- 10,256,302 ---------- Colorado -- 2.0% 1,500,000 Denver Colorado, Health & Hospital, Series A, Rev., 5.38%, 12/01/18 1,496,190 ---------- Georgia -- 9.2% 2,000,000 Fulton County, Georgia, School District, GO, 5.25%, 01/01/15 2,126,680 2,000,000 Georgia State, GO, 4.00%, 07/01/12 1,895,780 2,700,000 Municipal Electric Authority of Georgia, Project One, Sub-Series A, Rev., 6.25%, 01/01/14 2,983,203 ---------- 7,005,663 ----------
See notes to financial statements. 8 Chase Vista Tax Free Income Fund Portfolio of Investments August 31, 1998 (continued)
Principal Amount Issuer Value - ----------------------------------------------------------------- Long Term Municipal Bonds -- (continued) - ----------------------------------------------------------------- Illinois -- 0.4% $ 100,000 Chicago Illinois Public Building Commission, Series A, Rev., 7.75%, 01/01/06 $ 103,397 150,000 Chicago O'Hare Intl. Airport, Series A, Rev., 7.50%, 01/01/03 159,421 65,000 Illinois Housing Development Authority, Series A, Rev., 8.00%, 06/01/26 68,433 ----------- 331,251 ----------- Kansas -- 5.2% 3,500,000 Kansas City, Kansas, Utility System, Rev., 6.38%, 09/01/23 3,942,680 ----------- Maryland -- 0.2% 115,000 Maryland State Community Development Administration, Housing & Community Development, Single Family Housing Program, 2nd Series, Rev.,7.60%, 04/01/23 120,491 ----------- Massachusetts -- 6.3% 2,500,000 Massachusetts State Consolidated Loan, Series C, GO, 5.25%, 08/01/12 2,627,725 70,000 Massachusetts State Housing Finance Authority, Series H, Rev., 7.75%, 12/01/20 72,917 1,000,000 Massachusetts State Port Authority, Series A, Rev., 5.00%, 07/01/27 981,950 1,000,000 New England Education Loan Marketing Corp., Massachusetts Student Loan, Sub-Issue H, Rev., 6.90%, 11/01/09 1,120,890 ----------- 4,803,482 ----------- Michigan -- 2.2% 1,000,000 Michigan State Housing Authority, Rental Housing, Series B, Rev., 7.55%, 04/01/23 1,079,130
See notes to financial statements. 9 Chase Vista Tax Free Income Fund Portfolio of Investments August 31, 1998 (continued)
Principal Amount Issuer Value - -------------------------------------------------------------- Long Term Municipal Bonds -- (continued) - -------------------------------------------------------------- $ 500,000 Wayne County, Michigan, Building Authority, Series A, GO, 8.00%, 03/01/17 $ 574,310 --------- 1,653,440 --------- Montana -- 1.5% 1,100,000 Montana State, Long Range Building Program, Series D, GO, 5.38%, 08/01/12 1,166,473 --------- Missouri -- 1.1% 720,000 Sikeston Missouri Electric, Rev., 6.00%, 06/01/16 826,121 --------- Nevada -- 0.2% 130,000 Nevada Housing Division, Single Family Housing Rev., 8.20%, 10/01/19 142,508 --------- New Jersey -- 12.3% 1,000,000 Camden County, New Jersey IAR, Health Systems, Catholic Health East, Series A, Insured, Rev., 5.00%, 11/15/28 989,160 2,000,000 Essex County, New Jersey, Utilities Authority, Solid Waste, Series A, Insured, Rev., 6.00%, 04/01/06 2,228,900 3,455,000 Middletown Township, New Jersey, Board of Education, Insured, GO, 5.8%, 08/01/20 3,696,366 1,500,000 New Jersey State, Educational Facilities Authority, Fairleigh Dickinson University, Series G, Rev., 5.75%, 07/01/27 1,495,590 1,000,000 Ocean County, New Jersey, GO, 4.60%, 10/01/14 984,330 --------- 9,394,346 ---------
See notes to financial statements. 10 Chase Vista Tax Free Income Fund Portfolio of Investments August 31, 1998 (continued)
Principal Amount Issuer Value - --------------------------------------------------------------------- Long Term Municipal Bonds -- (continued) - --------------------------------------------------------------------- New York -- 17.5% $2,000,000 Long Island Power Authority, New York, Electric Systems, Series A, Insured, Rev., 5.50%, 12/01/13 $2,193,260 2,450,000 New York City, New York, Series A, Insured, GO, 6.25%, 08/01/09 2,767,373 500,000 New York State, Dorm Authority, IDA, Mt. St. Vincent College, Rev., +, 7.00%, 05/01/08 549,460 1,700,000 New York University Educational Facilities, Series A, Insured, Rev., +, 5.75%, 07/01/27 1,939,003 5,000,000 Port Authority, New York & New Jersey, Consolidated 93rd Series, Rev., 6.13%, 06/01/2094 5,882,000 ---------- 13,331,096 ---------- Ohio -- 6.2% 4,000,000 Cleveland Ohio Public Power System First Mortgage -- Series A, Prerefunded, +, Rev., 7.00%, 11/15/04 4,713,520 ---------- Pennsylvania -- 4.6% 3,000,000 Delaware Valley, Pennsylvania, Regional Finance Authority, Local Government, Series A, Insured, GO, 5.50%, 08/01/28 3,290,910 230,000 New Castle Pennsylvania Area Hospital Authority Refunding, St. Francis Hospital, Series A, 6.50%, 11/15/17 244,260 ---------- 3,535,170 ---------- Puerto Rico -- 3.9% 3,000,000 Puerto Rico Commonwealth, Highway & Transportation Authority, Series A, Rev., 4.75%, 07/01/38 2,900,940 75,000 Puerto Rico Urban Renewal & Housing, Rev., 7.88%, 10/01/04 79,295 ---------- 2,980,235 ----------
See notes to financial statements. 11 Chase Vista Tax Free Income Fund Portfolio of Investments August 31, 1998 (continued)
Principal Amount Issuer Value - -------------------------------------------------------------------- Long Term Municipal Bonds -- (continued) - -------------------------------------------------------------------- South Carolina -- 5.3% $3,500,000 Piedmont Municipal Power Agency, South Carolina, Electric, Series A, Rev., 6.60%, 01/01/21 $ 3,505,040 South Carolina Housing Finance & Development Authority, Fairway Apts. Project, Rev., 250,000 7.63%, 04/01/33 263,433 250,000 Series B, Rev., 7.80%, 07/01/09 258,308 ----------- 4,026,781 ----------- South Dakota -- 0.1% 100,000 South Dakota Housing Development Authority, Series A, Rev., 5.88%, 05/01/12 104,728 ----------- Utah -- 0.3% 250,000 Utah State Board of Regents, Student Loan, Series F, Rev., 7.45%, 11/01/08 267,118 ----------- Virgin Islands -- 4.7% 500,000 Virgin Islands, Escrowed to Maturity, GO, 7.00%, 10/01/02 559,565 3,000,000 Virgin Islands, Public Finance Authority, Series A, Rev., 5.50%, 10/01/22 3,063,900 ----------- 3,623,465 ----------- Virginia -- 3.9% 100,000 Fairfax County Economic, Ogden Martin Sys. Project, Series A, Rev., 7.75%, 02/01/11 104,555 17,000,000 Pocahontas Parkway Association, Virginia, Toll Road, Series B, Rev., Zero coupon, 08/15/29 2,849,710 ----------- 2,954,265 -----------
See notes to financial statements. 12 Chase Vista Tax Free Income Fund Portfolio of Investments August 31, 1998 (continued)
Principal Amount Issuer Value - -------------------------------------------------------------------------------------- Long Term Investments (continued) - -------------------------------------------------------------------------------------- Washington -- 0.4% $ 250,000 Washington State Public Power Supply, Nuclear Project, Series B, $ 298,185 Rev., 7.25%, 07/01/09 - -------------------------------------------------------------------------------------- Total Long Term Municipal Bonds -- (Cost $72,943,850) 76,973,510 - -------------------------------------------------------------------------------------- Short Term Investments--1.7% - -------------------------------------------------------------------------------------- Shares Money Market Funds -- 1.7% 130,155 Provident Municipal Cash Money Market Fund 130,155 1,197,717 Provident Municipal Money Market Fund 1,197,717 - -------------------------------------------------------------------------------------- Total Short Term Investments (Cost $1,327,872) 1,327,872 - -------------------------------------------------------------------------------------- Total Investments -- 102.6% (Cost $74,271,722) $78,301,382 - ------------------------------------------------------------------------------------- Short Municipal Futures - -----------------------
Expiration Number of Original Value at Unrealized Description Date Contracts Cost 08/31/98 Depreciation - ------------------------------------------------------------------------------------- Municipal September 20 $2,478,587 $2,532,500 ($ 53,913) Bond 1998 Future - -------------------------------------------------------------------------------------
See notes to financial statements. 13 Chase Vista New York Tax Free Income Fund as of August 31, 1998 (unaudited) Fund Facts Objective Income exempt from federal and New York state and city taxes* Primary investments New York municipal bonds Suggested investment time frame 3-5 years minimum Market benchmark Lehman Municipal Bond Index Lipper Funds category NY Tax Exempt Municipal Debt Funds Average Class A Class B ------- ------- Inception date 9/8/87 11/4/93 Newspaper symbol NY TF not listed Net assets $111 Million $15 Million Average maturity 20.8 years 20.8 years Average duration 8.2 years 8.2 years Average quality A/A A/A
* A portion of the Fund's income may be subject to the Alternative Minimum Tax, and some investors may be subject to certain state and local taxes. Average Maturity/Quality [Square Chart] Average Maturity/Quality: Long/Med. [End Square Chart] Source: Morningstar 14 Chase Vista New York Tax Free Income Fund as of August 31, 1998 (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 9.03% for the year ended August 31, 1998. (Class A shares, without a sales charge). This compares to a return of 8.27% for the Lipper New York Tax Exempt Municipal Debt Funds Average and 8.65% for the unmanaged Lehman Municipal Bond Index. How the Fund Was Managed Early in the period, management shortened the Fund's duration to take advantage of relatively attractive valuations in the 15-year maturity range. As the period progressed and the impact of the economic problems in Asia became a concern among investors, management extended the Fund's duration in anticipation of falling interest rates. This strategy proved successful as interest rates tumbled sharply, particularly in the final four months of the period. While the drop in interest rates fueled higher bond prices, it also led to a sharp increase in new issuance, which kept prices from rising even more. Finally, the Fund also benefitted from its investments in New York City obligations, which have performed well since receiving a credit upgrade last February. The Fund's exposure to Puerto Rico general obligation bonds and U.S. territorial paper as well as electric utility bonds also proved beneficial to shareholders. Where the Fund May Be Headed Looking ahead, the New York calendar remains heavy, which should provide an opportunity to purchase securities with attractive yields compared with other tax-exempt bonds. As more supply emerges, we expect municipal/Treasury ratios to increase. Finally, if the current crisis in Asia remains a factor in the global economy, we do not anticipate a significant increase in interest rates anytime soon. Given this belief, we intend to maintain the Fund's above-average duration compared to the benchmark in the months ahead. 15 Chase Vista New York Tax Free Income Fund as of August 31, 1998 (unaudited) How Much of the Fund Was Invested [Pie Chart] Investments (98.2%) Cash/Other (1.8%) [End Pie Chart] Average Annual Total Returns This table shows the average annual total returns. This is where you can see the Fund's short-term performance, which, as with the stock markets, tends to be more volatile than the long-term trend.
1 Year 5 Years 10 Years ------ ------- -------- Class A Shares Without Sales Charge 9.03% 5.54% 8.33% With Sales Charge* 4.12% 4.57% 7.83% Class B Shares Without CDSC 8.27% 4.79% 7.95% With CDSC** 3.27% 4.46% 7.95%
Source: Lipper Analytical Services, Inc. Past performance is not predictive of future performance. Investment return and principal value will fluctuate with market conditions. When shares are redeemed, they may be worth more or less than their original cost. The Fund is currently waiving fees. This voluntary waiver may be modified or terminated at any time, which would reduce performance. * The maximum sales charge for A shares is 4.50%. ** Assumes a 5% CDSC for the one year period, a 2% CDSC for the five year period and a 0% CDSC for the ten year period. + The Fund commenced operations on 9/8/87. Class B Shares were introduced on 11/4/93. Investors should note that the information presented for B Shares prior to their introduction is based upon historical expenses of the predecessor Class A Shares, which are lower than the actual expenses of the B Shares. Additionally, annualized figures have been restated to reflect the maximum contingent deferred sales charge that applies to the Fund's B Shares. 16 Chase Vista New York Tax Free Income Fund as of August 31, 1998 (unaudited) 10-Year Performance This chart shows what the long-term growth would have been of a hypothetical $10,000 investment in the Chase Vista New York Tax Free Income Fund compared to its key benchmarks. This is where you see the Fund's long-term trend. This chart is for illustrative purposes only. [Mountain Chart]
Lipper Chase Vista New York New York Lehman Tax Exempt Tax Free Muni Bond Muni Debt Income Fund Index Funds Avg. 1988 9550 10000 10000 1989 10697 11098.1 11113.2 1990 11169.2 11811.2 11658.4 1991 12500.7 13204.5 13013.3 1992 14198 14681.2 14562.2 1993 16242.4 16421 16420.7 1994 16102 16444.9 16196.1 1995 17199.4 17903.6 17214.3 1996 17922.4 18839.5 17987.1 1997 19507.7 20585 19565.8 1998 21268.7 22365.8 21186.8
[End Mountain Chart] Source: Lipper Analytical Services, Inc. Past performance is not predictive of future performance. Investment return and principal value will fluctuate with market conditions. When shares are redeemed, they may be worth more or less than their original cost. This chart illustrates comparative performance for $10,000 invested in Class A shares of the Chase Vista New York Tax Free Income Fund, the Lehman Municipal Bond Index and the Lipper New York Tax Exempt Municipal Debt Funds Average from August 31, 1988 to August 31, 1998. The performance of the Fund assumes reinvestment of all dividends and capital gains and includes a 4.50% sales charge. The performance of the average and the index does not include a sales charge and has been adjusted to reflect investment of all dividends and capital gains on securities included in the benchmark. A portion of the Fund's income may be subject to the Alternative Minimum Tax, and some investors may be subject to certain state and local taxes. The Fund is currently waiving fees. This voluntary waiver may be modified or terminated at any time, which would reduce performance. The unmanaged Lehman Municipal Bond Index is a broad-based total return performance benchmark for the long-term, investment grade tax-exempt bond market. Bonds included in the Lehman Municipal Bond Index are representative of the market. An individual cannot invest in the index. The Lipper New York Tax Exempt Municipal Debt Funds Average represents the average performance of a universe of 98 actively-managed New York tax-exempt municipal bond mutual funds. Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge. 17 Chase Vista New York Tax Free Income Fund Portfolio of Investments August 31, 1998
Principal Amount Issuer Value - ----------------------------------------------------------------------- Long Term Municipal Bonds -- 94.8% - ----------------------------------------------------------------------- $4,000,000 Long Island Power Authority, New York, Electric Systems, Series A, Insured, Rev., 5.50%, 12/01/13 $ 4,386,520 550,000 Monroe County, New York, IDA, Public Improvement, Canal Ponds Park, Series A, Rev., 7.00%, 06/15/13 605,435 2,480,000 Monroe County, New York, Public Improvement, Series A, GO, 6.00%, 03/01/08 2,814,254 Nassau County, New York, 3,260,000 Series P, Insured, Prerefunded, GO, 6.40%, 11/01/04 3,740,491 3,665,000 Series P, Insured, Prerefunded, GO, 6.40%, 11/01/04 4,219,551 New York City IDA, 3,010,000 Brooklyn Navy Yard Cogeneration Partners, Rev., 6.20%, 10/01/22 3,375,956 500,000 Civil Facility, College of Mt. St. Vincent, Rev., +, 7.00%, 05/01/08 549,460 1,430,000 Civil Facility, New York Blood Center, Inc., Prerefunded, Rev., 7.20%, 05/01/04 1,650,620 1,500,000 Civil Facility, YMCA Greater New York Project, Rev., 5.80%, 08/01/16 1,585,635 New York City, New York, 1,000,000 Series A, Insured, GO, 6.25%, 08/01/08 1,141,790 1,000,000 Series B, GO, 7.50%, 02/01/03 1,118,340 390,000 Series D, Escrowed to Maturity, GO, 3.00%, 08/01/01 380,823 610,000 Series D, GO, 3.00%, 08/01/01 596,964 160,000 Series F, GO, 8.25%, 11/15/02 183,323 840,000 Series F, Prerefunded, GO, 8.25%, 11/15/01 962,449 5,000,000 Series J, GO, 5.35%, 08/01/12 5,218,500
See notes to financial statements. 18 Chase Vista New York Tax Free Income Fund Portfolio of Investments August 31, 1998 (continued)
Principal Amount Issuer Value - --------------------------------------------------------------------- Long Term Municipal Bonds -- (continued) - --------------------------------------------------------------------- $5,000,000 New York City, New York, Transitional Financing Authority, Future Tax Secured, Series A, Rev., 5.00%, 08/15/27 $ 4,909,800 New York State, Dorm Authority, 2,000,000 Fordham University, Rev., 5.00%, 07/01/28 1,972,400 5,000,000 Mental Health Services Facilities, Series B, Insured, Rev., 5.00%, 02/15/28 4,909,100 2,550,000 Niagara Nursing Home, Insured, Rev., 5.55%, 08/01/27 2,673,344 1,275,000 State University Educational Facilities, Series A, Prerefunded, Rev., 6.00%, 05/15/05 1,440,725 New York State, Environmental Facilities Corp., Pollution Control, State Water Revolving Fund, 3,000,000 New York City Municipal Water Authority, Rev., 5.75%, 06/15/12 3,352,410 735,000 Series A, Insured, Rev., 7.00%, 06/15/09 802,017 1,500,000 Series A, Rev., 7.25%, 06/15/10 1,659,035 New York State, Housing Finance Agency, Series A, Rev. 300,000 6.95%, 08/15/12 325,911 860,000 8.00%, 11/01/08 936,996 4,005,000 New York State, Local Government Assistance Corp., Series A, Insured, Rev., 5.25%, 04/01/16 4,241,736 New York State, Medical Care Facilities Financing Authority, 745,000 Insured Mortgage, +, Rev., 7.88%, 08/15/20 813,883 375,000 Series 64, Rev., 8.00%, 02/15/28 383,805 1,000,000 New York State, Municipal Bond Bank, Buffalo Special Project, Rev., 6.88%, 03/15/06 1,104,980
See notes to financial statements. 19 Chase Vista New York Tax Free Income Fund Portfolio of Investments August 31, 1998 (continued)
Principal Amount Issuer Value - --------------------------------------------------------------------- Long Term Municipal Bonds -- (continued) - --------------------------------------------------------------------- New York State, Thruway Authority, Service Contract, Local Highway & Bridges, $4,615,000 Transportation Fund, Series C, Insured, Rev., 5.25%, 04/01/10 $ 4,905,330 2,500,000 Transportation Fund, Series C, Insured, Rev., 6.00%, 04/01/11 2,762,700 2,205,000 New York State, Urban Development Corp., Center for Individual Innovation, Rev., 5.50%, 01/01/13 2,354,014 5,000,000 Niagara, New York, Frontier Transportation Authority, Greater Buffalo International Airport, Insured, +, Rev., 5.75%, 04/01/04 5,394,850 Port Authority of New York & New Jersey, 5,000,000 Consolidated 93rd Series, Rev., 6.13%, 06/01/2094 5,882,000 3,000,000 Special Obligation, 3rd Installment, Special Project KIAC-4, Rev., 7.00%, 10/01/07 3,407,760 2,500,000 Puerto Rico Commonwealth, GO, 5.00%, 07/01/27 2,462,275 5,000,000 Puerto Rico Commonwealth, Highway & Transportation Authority, Series A, Rev., 4.75%, 07/01/38 4,834,900 2,000,000 Puerto Rico Industrial Med & Environmental Pollution Facilities Financing Authority, Rev., 6.45%, 12/01/25 2,217,300 5,000,000 Rensselaer New York Municipal Leasing Corp., Rensselaer County Nursing Home Rev., +, 6.90%, 06/01/24 5,556,400 1,000,000 Triborough Bridge & Tunnel Authority of New York, Special Obligation, Series A, Insured, Rev., 6.60%, 01/01/05 1,077,640
See notes to financial statements. 20 Chase Vista New York Tax Free Income Fund Portfolio of Investments August 31, 1998 (continued)
Principal Amount Issuer Value - ----------------------------------------------------------------- Long Term Municipal Bonds -- (continued) - ----------------------------------------------------------------- $5,000,000 Virgin Islands, Public Finance Authority, Series A, Rev., 5.50%, 10/01/22 $ 5,106,500 1,150,000 Virgin Islands, Public Finance Authority, Series A, Prerefunded, Rev., 7.25%, 10/01/02 1,317,014 1,000,000 Virgin Islands, Water & Power Authority Electric System, Rev., 5.30%, 07/01/18 1,008,680 1,000,000 Virgin Islands, Water & Power Authority Electric System, Rev., 5.30%, 07/01/21 1,006,040 Westchester County, New York IDA, 1,050,000 AGR Realty Co., Rev., 5.75%, 01/01/02 1,094,425 2,000,000 Resource Recovery, Resco Co. Project, Series A, Rev., 5.70%, 07/01/08 2,169,360 1,150,000 Westchester County, New York, GO, 6.70%, 11/01/06 1,356,528 1,000,000 Western Nassau County, New York, Water Authority Water Systems,Insured, Rev., 5.50%, 05/01/16 1,057,530 2,000,000 Western Nassau County, New York, Water Authority Water Systems, Insured, Rev., 5.65%, 05/01/26 2,123,740 - ------------------------------------------------------------- Total Long Term Municipal Bonds (Cost $112,212,450) 119,151,239 - ------------------------------------------------------------- Short Term Investments -- 3.9% - -------------------------------------------------------------
Shares - ------------------------------------------------------------- Money Market Funds -- 3.9% 4,954,774 Provident New York Money Market Fund (Cost $4,954,774) 4,954,774 =============================================================
See notes to financial statements. 21 Chase Vista New York Tax Free Income Fund Portfolio of Investments August 31, 1998 (continued)
Shares - ------------------------------------------------------------- Total Short Term Investments (Cost $4,954,774) $ 4,954,774 - ------------------------------------------------------------- Total Investments -- 98.7% (Cost $117,167,224) $124,106,013 - ------------------------------------------------------------- Short Municipal Futures - -----------------------
Expiration Number Original Value at Unrealized Description Date of Contracts Cost 08/31/98 Depreciation - -------------------------------------------------------------------------------- Municipal September 32 $3,965,742 $4,052,000 ($ 86,258) Bond 1998 Future - --------------------------------------------------------------------------------
See notes to financial statements. 22 Chase Vista California Intermediate Tax Free Fund as of August 31, 1998 (unaudited) Fund Facts Objective Income exempt from federal and California state taxes* Primary investments California municipal bonds Suggested investment time frame 3-5 years minimum Market benchmark Lehman Municipal Bond Index Lehman California Intermediate Municipal Bond Index Lipper Funds category California Intermediate Municipal Debt Funds Average Class A ------- Inception date 7/16/93 Newspaper symbol CA TF Int Net assets $24 Million Average maturity 9.7 years Average duration 6.2 years Average quality Aa/AA
* A portion of the Fund's income may be subject to the Alternative Minimum Tax, and some investors may be subject to certain state and local taxes. Average Maturity/Quality [Square Chart] Average Maturity/Quality: Int./High [End Square Chart] Source: Morningstar 23 Chase Vista California Intermediate Tax Free Fund as of August 31, 1998 (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 7.81% for the year ended August 31, 1998. (Class A Shares without a sales charge). This compares to a return of 6.79% for the Lipper California Intermediate Municipal Debt Funds Average and 7.56% for the Lehman California Municipal Bond Index. How the Fund Was Managed Management's decision to extend the Fund's average duration proved rewarding to shareholders as interest rates trended lower. The yield on the 30-year Treasury bond, the key benchmark of long-term interest rate activity, declined from 6.61% at the start of the period to a historic low of 5.26% on August 31, 1998. Management's decision to extend the Fund's duration was motivated by two primary factors: concerns that the currency and economic crisis in Asia and Russia would have a spillover effect on other global economies and the growing lack of supply in California bonds. The Fund's investment in non-callable bonds also proved beneficial. This enabled us to avoid having to reinvest proceeds from bonds called prior to maturity at lower interest rates. We continued to upgrade credit quality during the period. Where the Fund May Be Headed Looking ahead, our outlook remains positive. We expect a further slowdown in economic activity (and further pressure on interest rates) due to the degree of the financial meltdown in Asia and Russia and its subsequent impact on many markets around the world. Additionally, high-quality California bonds with relatively attractive yields remain in short supply, which should help raise their values going forward. Given this outlook, management plans to maintain the Fund's slightly higher-than-average duration in the months ahead. 24 Chase Vista California Intermediate Tax Free Fund as of August 31, 1998 (unaudited) How Much of the Fund Was Invested [Pie Chart] Investments (98.6%) Cash/Other (1.4%) [End Pie Chart] Average Annual Total Returns This table shows the average annual total returns. This is where you can see the Fund's short-term performance, which, as with the stock markets, tends to be more volatile than the long-term trend.
Since 1 Year 5 Years Inception (7/16/93) ----- ------- ------------------- Class A Shares Without Sales Charge 7.81% 5.63% 5.69% With Sales Charge* 2.96% 4.67% 4.75%
Source: Lipper Analytical Services, Inc. Past performance is not predictive of future performance. Investment return and principal value will fluctuate with market conditions. When shares are redeemed, they may be worth more or less than their original cost. *The maximum sales charge for A shares is 4.50%. The Fund is currently waiving certain fees. This voluntary waiver may be modified or terminated at any time, which would reduce performance. 25 Chase Vista California Intermediate Tax Free Fund as of August 31, 1998 (unaudited) 5-Year Performance This chart shows what the long-term growth would have been of a hypothetical $10,000 investment in the Chase Vista California Intermediate Tax Free Fund compared to its key benchmarks. This is where you see the Fund's long-term trend. This chart is for illustrative purposes only. [Mountain Chart]
Lehman Lipper Chase Vista California California California Lehman Intermediate Intermediate Tax Free Muni Bond Muni Bond Muni Debt Income Fund Index Index Funds Avg. 1993 9550 10000 10000 10000 1994 9763.45 10191.8 10311.7 10253.1 1995 10500.9 11095.8 11225.4 10911.1 1996 11025.5 11675.8 11714.7 11379.9 1997 11848.1 12757.6 12716.4 12215.7 1998 12773.9 13861.3 13678.5 13051.6
[End Mountain Chart] Source: Lipper Analytical Services, Inc. Past performance is not predictive of future performance. Investment return and principal value will fluctuate with market conditions. When shares are redeemed, they may be worth more or less than their original cost. This chart illustrates comparative performance for $10,000 invested in Class A shares of the Chase Vista California Intermediate Tax Free Fund, the Lehman Municipal Bond Index, the Lehman California Intermediate Municipal Bond Index and the Lipper California Intermediate Municipal Debt Funds Average from July 16, 1993 to August 31, 1998. The Fund's performance includes a 4.50% sales charge and assumes the reinvestment of all dividends and capital gains. The performance of the average and the index does not include a sales charge and has been adjusted to reflect reinvestment of all dividends and capital gains on securities included in the benchmark. A portion of the Fund's income may be subject to the Alternative Minimum Tax, and some investors may be subject to certain state and local taxes. The Fund is currently waiving fees. This voluntary waiver may be modified or terminated at any time, which would reduce performance. The unmanaged Lehman Municipal Bond Index is a broad-based total return performance benchmark for the long-term, investment grade tax-exempt bond market. Bonds included in the Lehman Municipal Bond Index are representative of the market. An individual cannot invest in the index. The unmanaged Lehman California Intermediate Municipal Bond Index is a total return performance benchmark for the California investment grade tax exempt bond market. Bonds included in the Lehman California Intermediate Municipal Bond Index are representative of the market. An individual cannot invest in the index. The Lipper California Intermediate Municipal Debt Funds Average represents the average performance of a universe of 34 actively-managed California tax-exempt municipal bond funds. Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge. 26 Chase Vista California Intermediate Tax Free Fund Portfolio of Investments August 31, 1998
Principal Amount Issuer Value - ---------------------------------------------------------------------- Long Term Municipal Bonds -- 88.5% - ---------------------------------------------------------------------- $1,500,000 California State, Insured, +, GO, 6.50%, 02/01/07 $ 1,748,205 1,400,000 California State, Insured, +, GO, 6.20%, 09/01/05 1,589,182 250,000 California State, Public Works Board, Lease Revenue, Series A, Rev., 6.00%, 09/01/01 265,675 1,000,000 Contra Costa California Transition Authority, Series A, Insured, Rev., 6.00%, 03/01/08 1,139,810 1,850,000 Contra Costa California Water District, Series G, Insured, Rev., 5.75%, 10/01/14 2,002,089 1,995,000 Fallbrook California, United High School District, San Diego County, Insured, GO, t, 5.38%, 09/01/12 2,161,902 200,000 Irvine Ranch Water District, Issue 11, Rev., 7.60%, 08/15/99 200,348 1,010,000 La Mesa-Spring Valley, California, School Districts, Capital Projects Refinancing, Insured, COP, 5.50%, 09/01/11 1,105,465 1,000,000 Los Angeles County, California, Transition Community, Sales Tax, Proposition C, 2nd Series, Series A, Insured, Rev., 5.88%, 07/01/02 1,074,790 375,000 Los Angeles County, California, Union School District, Series A, Insured, GO, 6.00%, 07/01/15 431,006 1,000,000 Northern California, Power Agency, Public Power, Geothermal Project, Series A, Insured, Rev., 5.80%, 07/01/09 1,125,980 1,000,000 Redwood City, California, Elementary School District, Insured, GO, 5.00%, 08/01/16 1,029,890
See notes to financial statements. 27 Chase Vista California Intermediate Tax Free Fund Portfolio of Investments August 31, 1998 (continued)
Principal Amount Issuer Value - --------------------------------------------------------------------- Long Term Municipal Bonds -- (continued) - --------------------------------------------------------------------- $ 1,000,000 Riverside County, California Trans. Common Sales Tax Rev., Series A, Insured, +, Rev., 6.00%, 06/01/08 $ 1,142,720 1,000,000 San Francisco California, City & County Airport Community International Airport, 2nd Series, Issue 18A, Insured, Rev., 6.00%, 05/01/04 1,099,380 1,000,000 Santa Clara County, California, Financing Authority, Lease, Series A, Insured, Rev., 5.75%, 11/15/13 1,122,380 1,200,000 South Orange County Public Financing Authority, Special Tax, Senior Lien, Series A, Insured, Special Tax, 6.20%, 09/01/13 1,333,632 1,000,000 University of California, UC Medical Center, Insured, Rev., 10.00%, 07/01/06 1,383,650 705,000 Valley Health Systems California Hospital, Improvement Project, Series A, Rev., 5.25%, 05/15/99 711,888 1,000,000 Victor Valley California, High School District Capital Appreciation Bond, Insured, GO, 0.00%, 09/01/10 576,700 ----------- Total Long Term Municipal Bonds (Cost $20,149,300) 21,244,692 - ----------------------------------------------------------------- Short Term Investments -- 10.5% - ----------------------------------------------------------------- Floating Rate Demand Notes -- 8.3% 1,000,000 California State, Economic Development Financing Authority, California Independent Systems Project, Series A, Rev., 2.70%, 09/03/98 1,000,000
See notes to financial statements. 28 Chase Vista California Intermediate Tax Free Fund Portfolio of Investments August 31, 1998 (continued)
Principal Amount Issuer Value - ----------------------------------------------------------------- Short Term Investments -- (continued) - ----------------------------------------------------------------- $ 1,000,000 California State, Pollution Control Financing PCR, Pacific Gas & Electric, Series F, Rev., 3.50%, 09/03/98 $1,000,000 ---------- Total Floating Rate Demand Notes (Cost $2,000,000) 2,000,000 =================================================================
Shares Money Market Fund -- 2.2% 518,565 Provident California Money Market Fund (Cost $518,565) 518,565 - --------------------------------------------------------------- Total Short Term Investments (Cost $2,518,565) 2,518,565 - --------------------------------------------------------------- Total Investments -- 99.0% (Cost $22,667,865) $23,763,257 - --------------------------------------------------------------- Short Municipal Futures - -----------------------
Expiration Number Original Value at Unrealized Description Date of Contracts Cost 08/31/98 Depreciation - ----------------------------------------------------------------------------- Municipal September 7 $868,164 $886,375 ($18,211) Bond 1998 Future - -----------------------------------------------------------------------------
Abbreviation Definition + --All or a portion of this security is pledged. COP --Certificate of Participation Dorm --Dormitory FRDN --Floating Rate Demand Note:The maturity date shown is the next interest reset date; the rate shown is the rate in effect at August 31, 1998. GO --General Obligation IDA --Industrial Development Authority IDR --Industrial Development Revenue Rev. --Revenue Bond Prerefunded --The maturity date shown is the date of the prerefunded call.
See notes to financial statements. 29 Chase Vista Funds Statement of Assets and Liabilities August 31, 1998 - --------------------------------------------------------------------------------
California New York Intermediate Tax Free Tax Free Tax Free Income Fund Income Fund Fund ------------ ------------ ------------ ASSETS: Investment securities, at value (Note 1) $78,301,382 $124,106,013 $23,763,257 Cash ................................... 27,760 1 -- Other assets ........................... 889 1,498 288 Receivables: Investment securities sold ............ 5,663,792 -- -- Interest .............................. 1,015,515 1,715,355 345,098 Fund shares sold ...................... 120,273 226,590 -- ----------- ------------ ----------- Total Assets ........................ 85,129,611 126,049,457 24,108,643 ----------- ------------ ----------- LIABILITIES: Payables Investment securities purchased ....... 8,299,667 -- -- Fund shares redeemed .................. 256,544 134,603 20,000 Dividends ............................. 92,661 81,120 37,097 Variation margin ...................... 9,375 15,000 3,281 Accrued liabilities: (Note 2) Investment advisory fees .............. 6,407 20,863 -- Administration fees ................... 9,611 15,647 2,014 Shareholder servicing fees ............ 8,836 13,198 -- Distribution fees ..................... 9,579 9,234 -- Custody fees .......................... 13,405 18,631 11,646 Other ................................. 47,791 67,914 38,331 ----------- ------------ ----------- Total Liabilities ................... 8,753,876 376,210 112,369 ----------- ------------ ----------- NET ASSETS: Paid in capital ........................ 72,808,318 117,811,817 22,415,863 Accumulated undistributed net investment income ..................... (97,364) (55,183) 189,080 Accumulated net realized gain (loss) on investment transactions ............ (310,966) 1,064,082 314,150 Net unrealized appreciation of investments and futures ............... 3,975,747 6,852,531 1,077,181 ----------- ------------ ----------- Net Assets: ............................ $76,375,735 $125,673,247 $23,996,274 =========== ============ =========== Class A Shares ........................ $60,960,718 $110,877,188 $23,996,274 Class B Shares ........................ $15,415,017 $ 14,796,059 $ -- Shares of beneficial interest outstanding ($.001 par value; unlimited number of shares authorized) ............................. Class A Shares ........................ 4,730,240 9,100,310 2,331,985 Class B Shares ........................ 1,202,548 1,217,227 -- Class A: Net asset value and redemption price per share (net assets/shares outstanding) .......................... $ 12.89 $ 12.18 $ 10.29 Maximum offering price per share (net asset value per share/95.5%) $ 13.50 $ 12.75 $ 10.77 Class B: Net asset value and maximum offering price per share (net assets/shares outstanding) ............ $ 12.82 $ 12.16 $ -- =========== ============ =========== Cost of investments .................... $74,271,722 $117,167,224 $22,667,865 =========== ============ ===========
See notes to financial statements. 30 Chase Vista Funds Statement of Operations For the year ended August 31, 1998 - --------------------------------------------------------------------------------
California New York Intermediate Tax Free Tax Free Tax Free Income Fund Income Fund Fund ------------- ------------- ------------- INTEREST INCOME: (Note 1C) .............. $3,952,851 $5,723,338 $1,199,803 ---------- ---------- ---------- EXPENSES: (Note 2) Investment advisory fees .............. 225,980 322,126 72,053 Administration fees ................... 112,990 161,063 36,026 Shareholder servicing fees ............ 188,317 268,439 60,045 Distribution fees ..................... 259,619 338,977 60,044 Custodian fees ........................ 68,310 70,949 43,443 Printing and postage .................. 22,438 24,986 9,974 Professional fees ..................... 21,411 27,357 23,419 Registration costs .................... 33,314 -- 1,217 Transfer agent fees ................... 122,622 147,887 36,027 Trustees fees and expenses ............ 3,766 5,369 1,201 Other ................................. 237 8,223 4,428 ---------- ---------- ---------- Total expenses ...................... 1,059,004 1,375,376 347,877 Less amounts waived (Note 2E) ......... 335,939 401,809 203,770 ---------- ---------- ---------- Net expenses ........................ 723,065 973,567 144,107 ---------- ---------- ---------- Net investment income .............. 3,229,786 4,749,771 1,055,696 ---------- ---------- ---------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on: Investments .......................... 2,012,394 1,995,448 321,395 Futures transactions ................. (291,864) (551,577) (2,940) Change in net unrealized appreciation on investments and futures .......................... 1,732,323 3,152,350 453,020 ---------- ---------- ---------- Net realized and unrealized gain on investments and futures transactions ......................... 3,452,853 4,596,221 771,475 ---------- ---------- ---------- Net increase in net assets from operations ........................... $6,682,639 $9,345,992 $1,827,171 ========== ========== ==========
See notes to financial statements. 31 Chase Vista Funds Statement of Changes in Net Assets For the year ended August 31, - --------------------------------------------------------------------------------
Tax Free Income Fund -------------------------------- 1998 1997 --------------- --------------- INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income ............................................ $ 3,229,786 $ 3,844,936 Net realized gain on investments and futures transactions ........ 1,720,530 2,059,306 Change in net unrealized appreciation on investments and futures ......................................................... 1,732,323 1,329,149 ------------ -------------- Increase in net assets from operations ........................... 6,682,639 7,233,391 ------------ -------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: ........................................... Class A ......................................................... (2,722,932) (3,281,406) Class B ......................................................... (510,149) (564,009) Net realized gain on investment transactions: .................... Class A ......................................................... -- -- Class B ......................................................... -- -- ------------ -------------- Total dividends and distributions .............................. (3,233,081) (3,845,415) ------------ -------------- Increase (decrease) from capital share transactions (Note 5) ..... (3,412,737) (11,857,780) ------------ -------------- Total increase (decrease) ....................................... 36,821 (8,469,804) NET ASSETS: Beginning of period ............................................. 76,338,914 84,808,718 ------------ -------------- End of period ................................................... $ 76,375,735 $ 76,338,914 ============ ============== California New York Intermediate Tax Free Tax Free Income Fund Fund -------------------------------- --------------- 1998 1997 1998 --------------- ---------------- --------------- INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income ............................................ $ 4,749,771 $ 4,988,170 $ 1,055,696 Net realized gain on investments and futures transactions ........ 1,443,871 1,462,096 318,455 Change in net unrealized appreciation on investments and futures ......................................................... 3,152,350 2,526,782 453,020 ------------ -------------- ------------ Increase in net assets from operations ........................... 9,345,992 8,977,048 1,827,171 ------------ -------------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: ........................................... Class A ......................................................... (4,223,224) (4,449,039) (1,053,996) Class B ......................................................... (513,474) (507,112) -- Net realized gain on investment transactions: .................... Class A ......................................................... (847,131) (190,592) (237,743) Class B ......................................................... (137,119) (26,031) -- ------------ -------------- ------------ Total dividends and distributions .............................. (5,720,948) (5,172,774) (1,291,739) ------------ -------------- ------------ Increase (decrease) from capital share transactions (Note 5) ..... 25,339,313 (16,854,581) (2,064,404) ------------ -------------- ------------ Total increase (decrease) ....................................... 28,964,357 (13,050,307) (1,528,972) NET ASSETS: Beginning of period ............................................. 96,708,890 109,759,197 25,525,246 ------------ -------------- ------------ End of period ................................................... $125,673,247 $ 96,708,890 $ 23,996,274 ============ ============== ============ California Intermediate Tax Free Fund --------------- 1997 --------------- INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income ............................................ $ 1,225,622 Net realized gain on investments and futures transactions ........ 233,438 Change in net unrealized appreciation on investments and futures ......................................................... 451,860 ------------ Increase in net assets from operations ........................... 1,910,920 ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: ........................................... Class A ......................................................... (990,238) Class B ......................................................... -- Net realized gain on investment transactions: .................... Class A ......................................................... (224,564) Class B ......................................................... -- ------------ Total dividends and distributions .............................. (1,214,802) ------------ Increase (decrease) from capital share transactions (Note 5) ..... (3,468,572) ------------ Total increase (decrease) ....................................... (2,772,454) NET ASSETS: Beginning of period ............................................. 28,297,700 ------------ End of period ................................................... $ 25,525,246 ============
See notes to financial statements. 32 Chase Vista Funds 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, as an open-end, non-diversified management investment company. Effective March 16, 1998, the Vista Family of Mutual Funds changed it's name to the Chase Vista Funds. Chase Vista Tax Free income Fund ("CVTFI"), Chase Vista New York Tax Free Income Fund ("CVNYTFI"), and Chase Vista California Intermediate Tax Free Fund ("CVCITF") (collectively the "Funds"), are three separate portfolios of the Trust. The CVTFI and CVNYTFI Funds offer two classes of shares, referred to as Class A Shares and Class B Shares. Class A Shares generally provide for a front-end sales charge while Class B Shares provide for a contingent deferred sales charge. All classes of shares have equal rights as to earnings, assets and voting privileges, except that each class may bear different distribution expenses and each class has exclusive voting rights with respect to its distribution plan. The following is a summary of significant accounting policies followed by the Funds: The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. A. Valuation of investments -- Fixed income securities (other than short-term obligations), including listed issues, are valued using matrix pricing systems of a major dealer in bonds which take into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, without exclusive reliance upon quoted exchange or over-the-counter prices. Short-term debt securities with 61 days or more to maturity at time of purchase are valued, through the 61st day prior to maturity, at market value based on quotations obtained from market makers or other appropriate sources; thereafter, the value on the 61st day is amortized on a straight-line basis over the remaining number of days to maturity. Short-term investments with 60 days or less to maturity at time of purchase are valued at amortized cost, which approximates market. B. Repurchase agreements -- It is the Trust's policy that repurchase agreements are fully collateralized by U.S. Treasury and Government agency securities. All collateral is held by the Trust'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. D. Futures contracts --When a Fund enters into a futures contract, it makes an initial margin deposit in a segregated account, either in cash or liquid securities. Thereafter, the futures contract is marked to market and the fund makes (or receives) additional cash payments daily to (from) the broker. Changes in the value of the contract are recorded as unrealized appreciation/depreciation until the contract is closed or settled. The Funds may enter into futures contracts only on exchanges or boards of trade. The exchange or board of trade acts as the counterparty to each futures transaction, therefore, the Fund's credit risk is limited to failure of the exchange or board of trade. The Funds invest in U.S. Treasury and/or Municipal Bond futures contracts as a hedge to modify the duration of the portfolio holdings, while maintaining a tax exempt income stream. 33 Chase Vista Funds Notes to Financial Statements (continued) - -------------------------------------------------------------------------------- As of August 31, 1998, the Funds held futures positions as listed on the respective Portfolio of Investments. E. Federal income taxes -- Each Fund is treated as a separate taxable entity for Federal income tax purposes. The Trust'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 Trust intends to make distributions as required to avoid excise taxes. Accordingly, no provision for Federal income or excise tax is necessary. F. Distributions to shareholders -- Dividends are declared daily and distributed in the form of additional shares of the Fund or, at the election of the shareholder, in cash (subject to the policies of the Shareholder Servicing Agent) on the last business day of the month. The amount of dividends and distributions from net investment income and net realized capital gains is determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles. To the extent these "book/tax" differences are permanent in nature, (i.e., that they will result from other than timing of recognition -- "temporary differences") such amounts are reclassified within the capital accounts based on their Federal tax-basis treatment. Dividends and distributions which exceed net investment income or net realized capital gains for financial reporting purposes but not for tax purposes are reported as distributions in excess of net investment income or net realized capital gains. G. Allocation of income and expenses -- Expenses directly attributable to a Fund are charged to that Fund; expenses directly attributable to a particular class are charged directly to such class, other expenses are allocated proportionately among each Fund within the Trust in relation to the net assets of each Fund or on another reasonable basis. In calculating net asset value per share of each class investment income, realized and unrealized gains and losses and expenses other than class specific expenses, are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day. 2. Fees and Other Transactions with Affiliates A. Investment advisory fee -- Pursuant to separate Investment Advisory Agreements, The Chase Manhattan Bank, ("Chase" or "Advisor" ) acts as the investment adviser to the Funds. Chase is a direct wholly-owned subsidiary of The Chase Manhattan Corporation. As investment adviser, Chase supervises the investments of the Funds and for such services is paid a fee. The fee is accrued daily and paid monthly at an annual rate equal to 0.30% of each Fund's average daily net assets. The Adviser voluntarily waived all or a portion of its fees as outlined in Note 2.E. below. Chase Asset Management, Inc. ("CAM"), a registered investment adviser, is the sub-investment adviser to each Fund, pursuant to a Sub-Investment Advisory Agreement between CAM and Chase. CAM is a wholly owned subsidiary of Chase and is entitled to receive a fee, payable by Chase from its advisory fee, at an annual rate equal to 0.15% of each Fund's average daily net assets. B. Shareholder servicing fees -- The Trust has adopted an Administrative Services Plan which, among other things, provides that the Trust on behalf of the Funds may obtain the services of one or more Shareholder Servicing Agents. For its services, each Shareholder Servicing Agent receives a fee. The fee is computed daily and paid monthly at an annual rate of 0.25% of the average daily net assets of each Fund. Chase and certain affiliates are the only Shareholder Servicing Agents. The Shareholder Servicing Agents voluntarily waived all or a portion of their fees as outlined in Note 2.E. below. 34 Chase Vista Funds Notes to Financial Statements (continued) - -------------------------------------------------------------------------------- C. Distribution and Sub-administration fees -- Pursuant to a Distribution and Sub-administration Agreement, Vista Fund Distributors, Inc. ("VFD" or the "Distributor"), a wholly-owned subsidiary of the BISYS Group Inc. ("BISYS"), acts as the Trust's exclusive underwriter and promotes and arranges for the sale of each Fund's shares. In addition, the Distributor provides certain sub-administration services to the Trust, including providing officers, clerical staff and office space for an annual fee, computed daily and paid monthly, of 0.05% of the average daily net assets of each Fund. The Trustees have adopted Distribution Plans (the "Distribution Plans") for Class A for all Funds and Class B for CVTFI and CVNYTFI in accordance with Rule 12b-1 under the 1940 Act. The Distribution Plans provide that each Fund shall pay distribution fees at annual rates not to exceed 0.25% of each Fund's average daily net assets for Class A Shares and 0.75% for Class B Shares. The Distributor voluntarily waived all or a portion of distribution fees as outlined in Note 2.E. below. D. Administration fee -- Pursuant to an Administration Agreement, Chase (the "Administrator") provides certain administration services to the Trust at a fee computed at an annual rate equal to 0.10% of the respective Fund's average daily net assets. The Administrator voluntarily waived all or a portion of its administration fees as outlined in Note 2.E. below. E. Waivers of fees -- For the year ended August 31, 1998, the Adviser, Administrator, Shareholder Servicing Agents and Distributor voluntarily waived fees for each of the Funds as follows:
CVTFI CVNYTFI CVCITF -------- --------- --------- Investment Advisory ............ $128,813 $ 79,555 $ 69,045 Administration ................. -- -- 18,591 Shareholder Servicing .......... 106,509 159,478 60,045 Distribution ................... 100,617 162,776 56,089 -------- -------- -------- $335,939 $401,809 $203,770 ======== ======== ========
F. Other -- Certain officers of the Trust are officers of VFD or of its parent corporation, BISYS. Chase provides portfolio accounting and custody services for the Funds. Compensation for such services are presented in the Statement of Operations as custodian fees. 3. Investment Transactions -- The cost of purchases and proceeds from sales of investments (excluding short-term investments) were as follows:
CVTFI CVNYTFI CVCITF ------------ ------------ ----------- Purchases ......... $126,874,849 $114,291,085 $10,069,791 Sales ............. 131,995,095 93,903,117 11,662,171
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, 1998, are as follows:
CVTFI CVNYTFI CVCITF ----------- ------------ ----------- Aggregate cost ........................ $74,271,722 $117,167,224 $22,667,865 ----------- ------------ ----------- Gross unrealized appreciation ........ . 4,034,199 6,938,789 1,095,392 Gross unrealized depreciation ......... (4,540) -- -- ----------- ------------ ----------- Net unrealized appreciation/ (depreciation) ....................... $4,029,659 $ 6,938,789 $ 1,095,392 =========== ============ ===========
35 Chase Vista Funds Notes to Financial Statements (continued) - -------------------------------------------------------------------------------- At August 31, 1998, Tax Free Income Fund had a net capital loss carryover of approximately $364,877 which will be available through August 31, 2003 to offset future capital gains to the extent provided by regulations. During the fiscal year ended August 31, 1998, CVTFI utilized capital loss carryovers of approximately $1,667,000, respectively. 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. Transactions in Shares of Beneficial Interest -- Transactions in Shares of Beneficial Interest were as follows:
Tax Free Income Fund ------------------------------------------------------------- Class A ------------------------------------------------------------- Year Ended August 31, ------------------------------------------------------------- 1998 1997 ---------------------------- ---------------------------- Amount Shares Amount Shares ------------ ---------- ------------ ----------- Shares sold ........................ $ 38,661,303 3,058,581 $ 31,436,949 2,592,275 Shares issued in reinvestment of distributions ................. 1,778,424 140,477 2,112,003 173,448 Shares redeemed .................... (45,006,803) (3,560,463) (44,098,460) (3,624,885) ------------ ---------- ------------ ---------- Net increase (decrease) in Trust shares outstanding ......... $ (4,567,076) (361,405) $(10,549,508) (859,162) ============ ========== ============ ==========
Tax Free Income Fund --------------------------------------------------------------- Class B --------------------------------------------------------------- Year Ended August 31, --------------------------------------------------------------- 1998 1997 ------------------------------- ----------------------------- Amount Shares Amount Shares ------------ ------------ ------------ ----------- Shares sold ........................ $3,265,302 259,396 $ 3,749,421 311,222 Shares issued in reinvestment of distributions ................. 361,911 28,751 402,547 33,284 Shares redeemed .................... (2,472,874) (196,924) (5,460,240) (452,103) ---------- -------- ----------- -------- Net increase (decrease) in Trust shares outstanding ......... $1,154,339 91,223 $(1,308,272) (107,597) ========== ======== =========== ========
New York Tax Free Income Fund --------------------------------------------------------------- Class A --------------------------------------------------------------- Year Ended August 31, --------------------------------------------------------------- 1998 1997 ------------------------------ ------------------------------ Amount Shares Amount Shares ------------- ------------ ------------- ------------ Shares sold ........................ $ 45,436,533 3,787,138 $ 17,264,175 1,483,392 Shares issued in reinvestment of distributions ................. 4,132,506 343,672 3,617,170 310,254 Shares redeemed .................... (25,061,227) (2,084,277) (37,063,699) (3,179,838) ------------- ---------- ------------ ---------- Net increase (decrease) in Trust shares outstanding ......... $ 24,507,812 2,046,533 $(16,182,354) (1,386,192) ============ ========== ============ ==========
36 Chase Vista Funds Notes to Financial Statements (continued) - --------------------------------------------------------------------------------
New York Tax Free Income Fund -------------------------------------------------------------- Class B -------------------------------------------------------------- Year Ended August 31, -------------------------------------------------------------- 1998 1997 ----------------------------- ---------------------------- Amount Shares Amount Shares ----------- ----------- ----------- ---------- Shares sold ........................ $2,898,301 242,047 $2,559,149 221,319 Shares issued in reinvestment of distributions ................. 498,497 41,571 407,098 35,058 Shares redeemed .................... (2,565,297) (214,046) (3,638,474) (313,983) ---------- -------- ---------- -------- Net increase (decrease) in Trust shares outstanding ......... $ 831,501 69,572 $ (672,227) (57,606) ========== ======== ========== ========
California Intermediate Tax Free Fund --------------------------------------------------------------- Year Ended August 31, --------------------------------------------------------------- 1998 1997 ----------------------------- ----------------------------- Amount Shares Amount Shares ------------- ------------- ------------- ------------ Shares sold ........................ $ 2,221,587 219,375 $ 884,434 88,861 Shares issued in reinvestment of distributions ................. 563,768 55,491 686,979 68,858 Shares redeemed .................... (4,849,759) (478,036) (5,039,985) (506,995) ----------- -------- ----------- -------- Net increase (decrease) in Trust shares outstanding ......... $(2,064,404) (203,170) $(3,468,572) (349,276) =========== ======== =========== ========
6. Concentration of Credit Risk -- CVTFI, CVNYTFI and CVCITF invest substantially all of their assets in a diversified portfolio of debt obligations issued by states, territories and possessions of the United States and by the District of Columbia, and by their political subdivisions and duly constituted authorities, CVNYTFI and CVCITF primarily investing in issuers in the States of New York and California, respectively. As of August 31, 1998, TFI invested approximately 17.5% of its assets in issuers in New York State. The issuer's abilities to meet their obligations may be affected by economic or political developments in a specific state or region. 7. Trustee Compensation -- The Funds have adopted an unfunded noncontributory defined benefit pension plan covering all independent trustees of the Funds who will have served as an independent trustee for at least five years at the time of retirement. Benefits under this plan are based on compensation and years of service. Pension expenses for the year ended August 31, 1998, included in Trustees Fees and Expenses in the Statement of Operations, and accrued pension liability included in other accrued liabilities in the Statement of Assets and Liabilities were as follows:
Accrued Pension Pension Expenses Liability ---------- ---------- CVTFI ........... $1,529 $6,324 CVNYTFI ......... 2,031 8,325 CVCITF .......... 495 2,066
37 Chase Vista Funds Financial Highlights - --------------------------------------------------------------------------------
Tax Free Income Fund ----------------------------------------------- Class A ----------------------------------------------- Year Ended August 31, ----------------------------------------------- 1998 1997 1996 1995 ---- ---- ---- ---- Per Share Operating Performance Net Asset Value, Beginning of Period ............................. $ 12.32 $ 11.84 $ 11.85 $ 11.70 ------- ------- ------- ------- Income from Investment Operations: Net Investment Income .......................................... 0.562 0.579 0.580 0.585 Net Gains or Losses in Securities (both realized and unrealized) 0.572 0.484 (0.007) 0.147 ------- ------- ------- ------- Total from Investment Operations ............................... 1.134 1.063 0.573 0.732 ------- ------- ------- ------- Less Distributions: Dividends from Net Investment Income ........................... 0.564 0.583 0.583 0.582 Distributions from Capital Gains ............................... -- -- -- -- ------- ------- ------- ------- Total Distributions ............................................ 0.564 0.583 0.583 0.582 ------- ------- ------- ------- Net Asset Value, End of Period ................................... $ 12.89 $ 12.32 $ 11.84 $ 11.85 ======= ======= ======= ======= Total Return (1) ................................................. 9.38% 9.14% 4.88% 6.53% Ratios/Supplemental Data: Net Assets, End of Period (000 omitted) .......................... $60,961 $62,729 $70,480 $88,783 Ratios to Average Net Assets#: Expenses ........................................................ 0.80% 0.90% 0.90% 0.85% Net Investment Income ........................................... 4.44% 4.78% 4.83% 5.07% Expenses Without Waivers and Assumption of Expenses ............. 1.31% 1.29% 1.46% 1.47% Net Investment Income Without Waivers and Assumption of Expenses .................................................... 3.93% 4.39% 4.27% 4.45% Portfolio turnover rate .......................................... 172% 147% 210% 233% Tax Free Income Fund ---------------- Class A --------------- 11/1/93 Through 8/31/94++ -------- Per Share Operating Performance Net Asset Value, Beginning of Period ............................. $ 12.70 ------- Income from Investment Operations: Net Investment Income .......................................... 0.475 Net Gains or Losses in Securities (both realized and unrealized) (0.847) -------- Total from Investment Operations ............................... (0.372) -------- Less Distributions: Dividends from Net Investment Income ........................... 0.475 Distributions from Capital Gains ............................... 0.153 -------- Total Distributions ............................................ 0.628 -------- Net Asset Value, End of Period ................................... $ 11.70 ======== Total Return (1) ................................................. (2.99%) Ratios/Supplemental Data: Net Assets, End of Period (000 omitted) .......................... $98,054 Ratios to Average Net Assets#: Expenses ........................................................ 0.58% Net Investment Income ........................................... 4.75% Expenses Without Waivers and Assumption of Expenses ............. 1.29% Net Investment Income Without Waivers and Assumption of Expenses .................................................... 4.04% Portfolio turnover rate .......................................... 258% Tax Free Income Fund ------------------------------------------------ Class B ------------------------------------------------ Year Ended August 31, ------------------------------------------------ 1998 1997 1996 1995 ----- ----- ----- ----- Per Share Operating Performance Net Asset Value, Beginning of Period ............................. $ 12.25 $ 11.76 $ 11.77 $ 11.65 ------- ------- ------- ------- Income from Investment Operations: Net Investment Income .......................................... 0.446 0.484 0.486 0.498 Net Gains or Losses in Securities (both realized and unrealized) 0.573 0.478 (0.006) 0.140 ------- ------- ------- ------- Total from Investment Operations ............................... 1.019 0.962 0.480 0.638 ------- ------- ------- ------- Less Distributions: Dividends from Net Investment Income ........................... 0.450 0.472 0.490 0.518 Distributions from Capital Gains ............................... -- -- -- -- ------- ------- ------- ------- Total Distributions ............................................ 0.450 0.472 0.490 0.518 ------- ------- ------- ------- Net Asset Value, End of Period ................................... $ 12.82 $ 12.25 $ 11.76 $ 11.77 ======= ======= ======= ======= Total Return (1) ................................................. 8.45% 8.30% 4.10% 5.70% Ratios/Supplemental Data: Net Assets, End of Period (000 omitted) .......................... $15,415 $13,610 $14,329 $14,265 Ratios to Average Net Assets#: Expenses ........................................................ 1.64% 1.64% 1.65% 1.61% Net Investment Income ........................................... 3.60% 4.04% 4.08% 4.31% Expenses Without Waivers and Assumption of Expenses ............. 1.81% 1.79% 1.95% 1.97% Net Investment Income Without Waivers and Assumption of Expenses .................................................... 3.43% 3.89% 3.78% 3.95% Portfolio turnover rate .......................................... 172% 147% 210% 233% Tax Free Income Fund -------------------- Class B ------------------- 11/14/93* Through 8/31/94++ -------- Per Share Operating Performance Net Asset Value, Beginning of Period ............................. $ 12.51 ------- Income from Investment Operations: Net Investment Income .......................................... 0.423 Net Gains or Losses in Securities (both realized and unrealized) (0.707) -------- Total from Investment Operations ............................... (0.284) -------- Less Distributions: Dividends from Net Investment Income ........................... 0.423 Distributions from Capital Gains ............................... 0.153 -------- Total Distributions ............................................ 0.576 -------- Net Asset Value, End of Period ................................... $ 11.65 ======== Total Return (1) ................................................. (2.35%) Ratios/Supplemental Data: Net Assets, End of Period (000 omitted) .......................... $11,652 Ratios to Average Net Assets#: Expenses ........................................................ 1.47% Net Investment Income ........................................... 3.95% Expenses Without Waivers and Assumption of Expenses ............. 1.81% Net Investment Income Without Waivers and Assumption of Expenses .................................................... 3.61% Portfolio turnover rate .......................................... 258%
- ------- (1) Total return figures do not include the effect of any sales load. # Short periods have been annualized. * Commencement of offering of class of shares. ++ In 1994 the Fund changed its fiscal year-end from October 31 to August 31. 38 See notes to financial statements. Chase Vista Funds Financial Highlights (continued) - --------------------------------------------------------------------------------
New York Tax Free Income Fund ------------------------------------------------- Class A ------------------------------------------------- Year Ended August 31, ------------------------------------------------- 1998 1997 1996 1995 ---- ---- ---- ---- Per Share Operating Performance Net Asset Value, Beginning of Period ............................. $ 11.80 $ 11.39 $ 11.47 $ 11.30 -------- ------- -------- -------- Income from Investment Operations: Net Investment Income .......................................... 0.544 0.555 0.555 0.570 Net Gains or Losses on Securities (both realized and unrealized) 0.497 0.432 (0.077) 0.167 -------- ------- -------- -------- Total from Investment Operations ............................... 1.041 0.987 0.478 0.737 -------- ------- -------- -------- Less Distributions: Dividends from Net Investment Income ........................... 0.544 0.554 0.558 0.567 Distributions from Capital Gains ............................... 0.117 0.023 -- -- -------- ------- -------- -------- Total Distributions ............................................ 0.661 0.577 0.558 0.567 -------- ------- -------- -------- Net Asset Value, End of Period ................................... $ 12.18 $ 11.80 $ 11.39 $ 11.47 ======== ======= ======== ======== Total Return (1) ................................................. 9.03% 8.85% 4.20% 6.82% Ratios/Supplemental Data: Net Assets, End of Period (000 omitted) .......................... $110,877 $83,208 $96,102 $104,168 Ratios to Average Net Assets#: Expenses ........................................................ 0.79% 0.90% 0.90% 0.85% Net Investment Income ........................................... 4.52% 4.77% 4.76% 5.11% Expenses Without Waivers and Assumption of Expenses ............. 1.21% 1.18% 1.27% 1.37% Net Investment Income Without Waivers and Assumption of Expenses .................................................... 4.10% 4.49% 4.39% 4.59% Portfolio turnover rate .......................................... 91% 107% 156% 122% New York Tax Free Income Fund ---------------- Class A --------------- 11/1/93 Through 8/31/94++ ------- Per Share Operating Performance Net Asset Value, Beginning of Period ............................. $ 12.27 -------- Income from Investment Operations: Net Investment Income .......................................... 0.473 Net Gains or Losses on Securities (both realized and unrealized) (0.688) -------- Total from Investment Operations ............................... (0.215) -------- Less Distributions: Dividends from Net Investment Income ........................... 0.472 Distributions from Capital Gains ............................... 0.283 -------- Total Distributions ............................................ 0.755 -------- Net Asset Value, End of Period ................................... $ 11.30 ======== Total Return (1) ................................................. (1.81%) Ratios/Supplemental Data: Net Assets, End of Period (000 omitted) .......................... $103,113 Ratios to Average Net Assets#: Expenses ........................................................ 0.76% Net Investment Income ........................................... 4.89% Expenses Without Waivers and Assumption of Expenses ............. 1.25% Net Investment Income Without Waivers and Assumption of Expenses .................................................... 4.40% Portfolio turnover rate .......................................... 162% New York Tax Free Income Fund ---------------------------------------------------- Class B --------------------------------------------------- Year Ended August 31, --------------------------------------------------- 1998 1997 1996 1995 ----- ----- ----- ----- Per Share Operating Performance Net Asset Value, Beginning of Period ............................. $ 11.76 $ 11.33 $ 11.41 $ 11.27 -------- -------- --------- -------- Income from Investment Operations: Net Investment Income .......................................... 0.443 0.465 0.469 0.485 Net Gains or Losses on Securities (both realized and unrealized) 0.510 0.430 (0.086) 0.162 -------- -------- --------- -------- Total from Investment Operations ............................... 0.953 0.895 0.383 0.647 -------- -------- --------- -------- Less Distributions: Dividends from Net Investment Income ........................... 0.436 0.442 0.463 0.507 Distributions from Capital Gains ............................... 0.117 0.023 -- -- -------- -------- --------- -------- Total Distributions ............................................ 0.553 0.465 0.463 0.507 -------- -------- --------- -------- Net Asset Value, End of Period ................................... $ 12.16 $ 11.76 $ 11.33 $ 11.41 ======== ======== ========= ======== Total Return (1) ................................................. 8.27% 8.03% 3.46% 5.99% Ratios/Supplemental Data: Net Assets, End of Period (000 omitted) .......................... $ 14,796 $ 13,501 $ 13,667 $ 10,633 Ratios to Average Net Assets#: Expenses ........................................................ 1.64% 1.64% 1.65% 1.61% Net Investment Income ........................................... 3.68% 4.03% 4.01% 4.35% Expenses Without Waivers and Assumption of Expenses ............. 1.71% 1.68% 1.76% 1.87% Net Investment Income Without Waivers and Assumption of Expenses .................................................... 3.61% 3.99% 3.90% 4.09% Portfolio turnover rate .......................................... 91% 107% 156% 122% New York Tax Free Income Fund ------------------- Class B ------------------- 11/14/93* Through 8/31/94++ -------- Per Share Operating Performance Net Asset Value, Beginning of Period ............................. $12.11 ------ Income from Investment Operations: Net Investment Income .......................................... 0.419 Net Gains or Losses on Securities (both realized and unrealized) (0.543) ------- Total from Investment Operations ............................... (0.124) ------- Less Distributions: Dividends from Net Investment Income ........................... 0.433 Distributions from Capital Gains ............................... 0.283 ------- Total Distributions ............................................ 0.716 ------- Net Asset Value, End of Period ................................... $11.27 ======= Total Return (1) ................................................. (1.11%) Ratios/Supplemental Data: Net Assets, End of Period (000 omitted) .......................... $7,234 Ratios to Average Net Assets#: Expenses ........................................................ 1.51% Net Investment Income ........................................... 4.28% Expenses Without Waivers and Assumption of Expenses ............. 1.76% Net Investment Income Without Waivers and Assumption of Expenses .................................................... 4.03% Portfolio turnover rate .......................................... 162%
- ------- (1) Total return figures do not include the effect of any sales load. # Short periods have been annualized. * Commencement of offering of class of shares. ++ In 1994 the Fund changed its fiscal year-end from October 31 to August 31. See notes to financial statements. 39 Chase Vista Funds Financial Highlights (continued) - --------------------------------------------------------------------------------
California Intermediate Tax Free Fund ----------------------------------------------- Year Ended August 31, ----------------------------------------------- 1998 1997 1996 1995 ----------- ----------- ----------- ----------- Per Share Operating Performance Net Asset Value, Beginning of Period ..................................... $ 10.07 $ 9.81 $ 9.89 $ 9.69 ------- ------- ------ ------- Income from Investment Operations: Net Investment Income .................................................. 0.447 0.461 0.473 0.505 Net Gains or Losses on Securities (both realized and unrealized) ....... 0.319 0.256 0.013 0.200 ------- ------- ------- ------- Total from Investment Operations ....................................... 0.766 0.717 0.486 0.705 ------- ------- ------- ------- Less Distributions: Dividends from Net Investment Income ................................... 0.446 0.324 0.476 0.505 Distributions from Capital Gains ....................................... 0.100 0.134 0.090 -- ------- ------- ------- ------- Total Distributions .................................................... 0.546 0.458 0.566 0.505 ------- ------- ------- ------- Net Asset Value, End of Period ........................................... $ 10.29 $ 10.07 $ 9.81 $ 9.89 ======= ======= ======= ======= Total Return (1) ......................................................... 7.81% 7.46% 5.00% 7.55% Ratios/Supplemental Data: Net Assets, End of Period (000 omitted) .................................. $23,996 $25,525 $28,298 $32,746 Ratios to Average Net Assets#: Expenses ................................................................ 0.60% 0.60% 0.60% 0.52% Net Investment Income ................................................... 4.38% 4.65% 4.77% 5.24% Expenses Without Waivers and Assumption of Expenses ..................... 1.44% 1.33% 1.47% 1.40% Net Investment Income Without Waivers and Assumption of Expenses ........ 3.54% 3.92% 3.90% 4.36% Portfolio turnover rate .................................................. 44% 66% 188% 94% California Intermediate Tax Free Fund ------------- 11/1/94 Through 8/31/94++ ------------ Per Share Operating Performance Net Asset Value, Beginning of Period ..................................... $ 10.30 -------- Income from Investment Operations: Net Investment Income .................................................. 0.320 Net Gains or Losses on Securities (both realized and unrealized) ....... (0.408) -------- Total from Investment Operations ....................................... (0.088) -------- Less Distributions: Dividends from Net Investment Income ................................... 0.404 Distributions from Capital Gains ....................................... 0.118 -------- Total Distributions .................................................... 0.522 -------- Net Asset Value, End of Period ........................................... $ 9.69 ======== Total Return (1) ......................................................... (0.86%) Ratios/Supplemental Data: Net Assets, End of Period (000 omitted) .................................. $ 36,264 Ratios to Average Net Assets#: Expenses ................................................................ 0.52% Net Investment Income ................................................... 4.88% Expenses Without Waivers and Assumption of Expenses ..................... 1.37% Net Investment Income Without Waivers and Assumption of Expenses ........ 4.03% Portfolio turnover rate .................................................. 93%
- ------- (1) Total return figures do not include the effect of any sales load. # Short periods have been annualized. * Commencement of operations. ++ In 1994 the Fund changed its fiscal year-end from October 31 to August 31. See notes to financial statements. 40 Report of Independent Accountants - -------------------------------------------------------------------------------- To the Trustees and Shareholders of Mutual Fund Trust In our opinion, the accompanying statement 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, 1998, 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 periods presented, in conformity with generally accepted accounting principles. 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 generally accepted auditing standards 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, 1998 by correspondence with the custodian and brokers, provide a reasonable basis for the opinion expressed above. PricewaterhouseCoopers LLP 1177 Avenue of the Americas New York, New York 10036 October 9, 1998 41 Unaudited Chase Vista Tax Free Income Fund (CVTFI) Chase Vista New York Tax Free Income Fund (CVNYTFI) Chase Vista California Intermediate Tax Free Fund (CVCITF) - -------------------------------------------------------------------------------- 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, 1998. 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, 1998. The information necessary to complete your income tax returns for the calendar year ending December 31, 1998 will be received under separate cover. FOR THE FISCAL YEAR ENDED AUGUST 31, 1998 o The dividends paid from net investment income are 100.00% exempt from Federal income tax for CVTFI, CVNYTFI and CVCITF, respectively. o For shareholders who are subject to the Alternative Minimum Tax, the income from private activities bonds issued after August 7, 1986, which may be considered a tax preference item, was 4.39%, 10.36% and 2.21% for CVTFI, CVNYTFI and CVCITF, respectively. o Long-term capital gains distributions were $0.044 and $0.049 per share for the CVNYTFI and CVCITF, respectively. 42 [THIS PAGE INTENTIONALLY LEFT BLANK] Chase Vista Funds Service Center P.O. Box 419392 Kansas City, MO 64179 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. October 1998 (unaudited) CVIS-2-1098 -----END PRIVACY-ENHANCED MESSAGE-----