<PAGE> 1
[VISTA LOGO]
- ------------------------------------------------------
- - VISTA SELECT BOND FUND
- - VISTA SELECT INTERMEDIATE BOND FUND
- - VISTA SELECT SHORT-TERM BOND FUND
- ------------------------------------------------------
- -----------------------------------------------
SEMIANNUAL REPORT
APRIL 30, 1997
(UNAUDITED)
<PAGE> 2
CONTENTS
Chairman's Letter 1
Fund Commentaries 2
Portfolio of Investments 8
Notes to Financial Statements 21
<PAGE> 3
Vista is in the process of redesigning your Shareholder Reports to include even
more information about your fund, its current investment strategy and how it is
performing.
Watch for the completed redesign when you receive your next Annual Report.
May 23, 1997
Dear Shareholder:
Welcome to The Vista Family of Mutual Funds, one of the country's
fastest-growing mutual fund providers.
As you are aware, your common trust fund investment was converted into a mutual
fund registered as Vista Select Mutual Funds. This tax-free exchange of assets
was made possible by the Small Business Job Protection Act, signed into law in
August 1996, and was communicated to you in a letter dated January 27, 1997.
This conversion provides numerous advantages to you, including greater
liquidity. Shares of the Vista Select Mutual Funds may be purchased or sold on
any business day instead of only once a month. In addition, the conversion
provides you with the ability to monitor your Vista Select Mutual Fund
performance through semiannual and annual reports as well as daily price
quotations available nationally in electronic and print media. In addition, you
gain the portability of mutual fund shares when a trust account is moved or
distributed.
We are pleased to present this Semi-Annual Report for the following Vista Select
Fixed Income Funds for the six months ended April 30, 1997:
- Bond Fund - Intermediate Bond Fund - Short-Term Bond Fund
Inside, you'll find information on the performance of each fund along with a
market overview and portfolio commentary. Please note that, although these Vista
Select Fixed-Income Funds have only a four-month history as of April 30, 1997,
the commentary for this semiannual report addresses the entire six-month period.
ECONOMIC GROWTH REPORTS CONTINUE TO DRIVE FIXED INCOME MARKETS
Over the six month period, the yield on the 30-year U.S. Treasury bond rose from
6.65% to 6.95%. However, this slight change masks a high degree of volatility in
fixed income markets resulting from changing market perceptions of the strength
of the U.S. economy.
As the period began, long-term interest rates were falling as the market rallied
sharply on reports of a slowing economy. The turning point in yields came in
early December 1996 in response to weaker demand and fears that the Federal
Reserve Board might raise interest rates to quell financial market speculation.
For the next several months, the market was inconsistent as investors reacted to
each new report on the economy's strength and attempted to determine the Fed's
stance. By the end of February, with the economy showing unexpectedly strong
growth, it was widely expected that the Fed would raise the Federal Funds rate
at its March meeting to cool the economy and preempt inflation, which it did. As
the reporting period ended, rates were again trending downward but remained
volatile given uncertainty over the sustainability of economic growth and future
Fed actions.
MANAGING YOUR MONEY IN A VOLATILE ENVIRONMENT
The Vista Select fixed income management team relied on a variety of tools to
manage your investment during the reporting period. Although interest rate
trends are always an important consideration, the main ways your management team
adds value are through analyzing the relative value of different types of fixed
income securities and carefully assessing the credit, structure and liquidity
risks of individual securities. In this way, we seek to provide you with
investments that can meet your needs in any interest rate environment.
We appreciate the confidence you have placed in us and look forward to serving
your investment needs for many years to come. If you have any questions, please
call your Chase Trust Account Officer whose name appears on the account
statement sent to you.
Sincerely,
/s/ FERGUS REID
Fergus Reid
Chairman
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.
<PAGE> 4
VISTA SELECT BOND FUND
Vista Select Bond Fund, which seeks to provide a high level of current income
through a portfolio of investment-grade government, asset-backed and corporate
bonds, had a total return of 1.41% for the six months ended April 30, 1997.
RELATIVE VALUE ANALYSIS KEY TO MANAGEMENT DECISIONS
In seeking to provide you with favorable returns on your investment in any
interest rate environment, the management team's most important tool is its
relative value analysis. This analysis seeks to determine which market
sector -- U.S. Treasuries, mortgage-backed or corporate securities -- is likely
to outperform in a given environment. The relative value analysis also guides
the management team in selecting the duration of the portfolio based on
different points of value along the yield curve. Additionally, the management
team carefully analyzes each potential investment for credit, structure and
liquidity risks, and uses this analysis to determine whether each security is
over- or under-valued in the market.
This relative value analysis led the management team to begin the period with an
overweight allocation to mortgage-backed securities. These securities' higher
yields relative to Treasuries, combined with a neutral portfolio duration, left
the Fund well positioned for November's moderate rally.
FUND SHIFTS EMPHASIS TO MORTGAGES AND SELECTED CORPORATE SECURITIES IN LATE 1996
At the end of 1996, the relative value analysis again pointed the management
team in the direction of mortgage-backed and selected corporate securities. This
helped the Fund perform well as mortgages and corporates were the top-performing
sectors in early 1997 and, subsequently, as rates began a moderate uptrend in
February. At that point, the management team reduced duration to neutral and
adopted a barbell strategy that sought to take advantage of stronger relative
values at the short and long ends of the yield curve.
As the reporting period ended, the Fund took profits on some of its
mortgage-backed securities but maintained a relatively-neutral sector
allocation. By early May, the management team was considering a more aggressive
move back into mortgage-backed and corporate securities given that the market
had begun to exhibit signs of settling yet again into a trading range. In such
an environment, the extra yield provided by these sectors tends to help overall
performance.
2
<PAGE> 5
- --------------------------------------------------------------------------------
VISTA SELECT BOND FUND
AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/97
<TABLE>
<S> <C>
One Year........................................................ 6.32%
Five Years...................................................... 7.27%
Ten Years....................................................... 8.22%
</TABLE>
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENTS IN THE FUND AND KEY BENCHMARKS
<TABLE>
<CAPTION>
LIPPER CORP LEHMAN
MEASUREMENT PERIOD SELECT BOND DEBT BBB AGGREGATE
(FISCAL YEAR COVERED) FUND FUNDS AVG. BOND INDEX
<S> <C> <C> <C>
04/30/87 10000.00 10000.00 10000.00
05/31/87 9967.06 9943.00 9961.00
06/30/87 10066.38 10043.42 10098.46
07/31/87 10033.44 10043.42 10090.38
08/31/87 9991.55 10021.33 10035.89
09/30/87 9806.62 9836.94 9822.13
10/31/87 10099.99 9989.41 10171.80
11/30/87 10153.71 10111.28 10253.17
12/31/87 10291.05 10247.78 10392.62
01/31/88 10602.85 10553.17 10758.44
02/28/88 10728.68 10739.96 10886.46
03/30/88 10656.77 10680.89 10784.13
04/29/88 10623.18 10644.57 10725.89
05/30/88 10561.35 10598.80 10654.03
06/29/88 10765.56 10853.17 10910.79
07/30/88 10688.97 10834.72 10854.06
08/30/88 10728.96 10858.56 10882.28
09/29/88 10949.20 11081.16 11128.22
10/30/88 11141.66 11244.05 11337.43
11/29/88 11028.43 11166.47 11200.24
12/30/88 11026.17 11217.83 11212.56
01/30/89 11208.78 11368.15 11374.03
02/28/89 11137.07 11322.68 11292.13
03/31/89 11239.52 11354.38 11340.69
04/30/89 11393.53 11512.21 11577.71
05/31/89 11683.51 11758.57 11882.20
06/30/89 12056.43 12065.47 12243.42
07/31/89 12291.06 12244.04 12504.21
08/31/89 12128.67 12130.17 12319.14
09/30/89 12162.43 12132.59 12381.97
10/31/89 12450.86 12281.82 12686.57
11/30/89 12571.44 12356.74 12807.09
12/31/89 12611.73 12353.04 12841.67
01/31/90 12444.23 12131.92 12688.85
02/28/90 12485.07 12110.08 12729.46
03/31/90 12492.62 12136.72 12738.37
04/30/90 12397.24 12008.07 12621.18
05/31/90 12705.87 12328.69 12994.76
06/30/90 12885.98 12523.48 13202.68
07/31/90 13093.38 12681.28 13384.88
08/31/90 12914.75 12425.12 13205.52
09/30/90 13018.03 12411.45 13315.12
10/31/90 13021.77 12442.48 13484.23
11/30/90 13345.94 12705.01 13774.14
12/31/90 13561.35 12896.86 13989.01
01/31/91 13659.88 13037.43 14162.48
02/28/91 13806.91 13262.98 14282.86
03/31/91 13893.64 13418.16 14378.55
04/30/91 14053.84 13616.75 14536.72
05/31/91 14152.48 13701.17 14621.03
06/30/91 14112.28 13692.95 14613.72
07/31/91 14253.77 13883.28 14816.85
08/31/91 14604.03 14212.32 15136.90
09/30/91 14969.23 14500.83 15444.17
10/31/91 15054.35 14658.89 15615.60
11/30/91 15149.50 14774.69 15759.27
12/31/91 15667.80 15263.73 16227.32
01/31/92 15403.87 15147.73 16006.63
02/29/92 15471.96 15253.76 16110.67
03/31/92 15428.33 15215.63 16020.45
04/30/92 15524.19 15285.62 16135.80
05/31/92 15804.49 15594.39 16440.76
06/30/92 16014.30 15815.83 16667.65
07/31/92 16396.68 16260.26 17007.67
08/31/92 16524.91 16406.60 17179.44
09/30/92 16672.81 16603.48 17383.88
10/31/92 16471.40 16294.65 17152.67
11/30/92 16462.90 16345.17 17159.54
12/31/92 16680.62 16626.30 17428.94
01/31/93 17042.46 17002.06 17763.58
02/28/93 17383.10 17415.21 18074.44
03/31/93 17444.93 17551.05 18150.35
04/30/93 17610.33 17675.66 18277.40
05/31/93 17628.03 17739.29 18301.16
06/30/93 17983.76 18172.13 18632.41
07/31/93 18138.21 18355.67 18738.62
08/31/93 18542.93 18799.87 19066.55
09/30/93 18604.27 18856.27 19118.03
10/31/93 18689.97 19024.10 19188.76
11/30/93 18500.46 18814.83 19025.66
12/31/93 18582.63 18937.13 19128.40
01/31/94 18880.03 19262.85 19386.63
02/28/94 18516.36 18844.84 19049.30
03/31/94 18070.48 18279.50 18578.78
04/30/94 17908.97 18043.69 18430.15
05/31/94 17894.77 17987.76 18428.31
06/30/94 17856.90 17915.80 18387.77
07/31/94 18186.53 18229.33 18753.69
08/31/94 18188.14 18289.49 18776.19
09/30/94 17919.57 18009.66 18500.18
10/31/94 17907.64 17952.03 18483.53
11/30/94 17917.51 17912.53 18442.87
12/31/94 17871.63 18016.43 18570.12
01/31/95 18239.52 18308.29 18937.81
02/28/95 18553.61 18745.86 19388.53
03/31/95 18730.07 18884.58 19506.80
04/30/95 18961.88 19213.17 19779.89
05/31/95 19750.74 20102.74 20545.38
06/30/95 19829.72 20251.50 20695.36
07/31/95 19723.17 20162.39 20649.83
08/31/95 20027.50 20460.80 20899.69
09/30/95 20295.62 20696.10 21102.42
10/31/95 20594.07 20987.91 21376.75
11/30/95 20899.40 21336.31 21697.40
12/31/95 21179.83 21692.63 22001.16
01/31/96 21334.71 21829.29 22146.37
02/29/96 20985.02 21314.12 21761.03
03/31/96 20833.99 21132.95 21608.70
04/30/96 20741.88 20970.23 21487.69
05/31/96 20694.74 20947.16 21444.71
06/30/96 20964.13 21200.62 21732.07
07/31/96 21005.15 21243.02 21790.75
08/31/96 20947.44 21206.91 21753.71
09/30/96 21309.34 21626.80 22132.22
10/31/96 21745.69 22148.01 22623.56
11/30/96 22157.52 22624.19 23010.42
12/31/96 21857.09 22382.11 22796.42
01/31/97 21914.24 22429.12 22867.09
02/28/97 21950.65 22525.56 22924.26
03/31/97 21739.04 22196.69 22669.80
04/30/97 22052.64 22518.54 23009.85
</TABLE>
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 shares of
Vista Select Bond Fund, the Lehman Aggregate Bond Index and the Lipper Corporate
Debt BBB Funds Average for the ten years ended April 30, 1997. The performance
of the Fund assumes reinvestment of all dividends and capital gains.
The Lipper Corporate Debt BBB Funds Average represents the average performance
of a universe of 129 actively managed BBB-rated corporate debt funds. Lipper is
an independent mutual fund performance monitor whose results are based on total
return and do not reflect a sales charge.
The Lehman Aggregate Bond Index is composed of the Lehman Government/Corporate
Index and the Mortgage-Backed Securities Index and includes U.S. Treasury and
agency issues and corporate bond and mortgage-backed securities. The index is
unmanaged and reflects the reinvestment of dividends. An individual cannot
invest in the index.
The quoted performance of Vista Select Bond Fund includes performance of a
predecessor account for the period dating back to 4/30/87 and prior to the
Fund's commencement of operations on 12/31/96. Returns are adjusted to reflect
historical expenses at the levels indicated (absent reimbursements) in the
Expense Summary for the Fund as disclosed in the Prospectus. The account was not
registered with the Securities and Exchange Commission and, therefore, was not
subject to the investment restrictions imposed by law on registered mutual
funds. If the account had been registered, the account's performance may have
been adversely affected. Also, the Fund is currently waiving certain fees. This
voluntary waiver may be modified or terminated at any time, which would reduce
returns.
3
<PAGE> 6
VISTA SELECT INTERMEDIATE BOND FUND
Vista Select Intermediate Bond Fund, which seeks to provide a high level of
current income through a portfolio of intermediate-term investment-grade
government, asset-backed and corporate bonds, had a total return of 1.28% for
the six months ended April 30, 1997.
RELATIVE VALUE ANALYSIS KEY TO MANAGEMENT DECISIONS
In seeking to provide you with favorable returns on your investment in any
interest rate environment, the management team's most important tool is its
relative value analysis. This analysis seeks to determine which market
sector -- U.S. Treasuries, mortgage-backed or corporate securities -- is likely
to outperform in a given environment. The relative value analysis also guides
the management team in selecting the duration of the portfolio based on
different points of value along the yield curve. Additionally, the management
team carefully analyzes each potential investment for credit, structure and
liquidity risks, and uses this analysis to determine whether each security is
over- or under-valued in the market.
This relative value analysis led the management team to begin the period with an
overweight allocation to mortgage-backed securities. These securities' higher
yields relative to Treasuries, combined with a neutral portfolio duration, left
the Fund well positioned for November's moderate rally.
FUND SHIFTS EMPHASIS TO MORTGAGES AND SELECTED CORPORATE SECURITIES IN LATE 1996
At the end of 1996, the relative value analysis again pointed the management
team in the direction of mortgage-backed and selected corporate securities. This
helped the Fund perform well as mortgages and corporates were the top-performing
sectors in early 1997 and, subsequently, as rates began a moderate uptrend in
February. At that point, the management team reduced duration to neutral and
adopted a barbell strategy that sought to take advantage of stronger relative
values at the short and long ends of the yield curve.
As the reporting period ended, the Fund took profits on some of its
mortgage-backed securities but maintained a relatively-neutral sector
allocation. By early May, the management team was considering a more aggressive
move back into mortgage-backed and corporate securities given that the market
had begun to exhibit signs of settling yet again into a trading range. In such
an environment, the extra yield provided by these sectors tends to help overall
performance.
4
<PAGE> 7
- --------------------------------------------------------------------------------
VISTA SELECT INTERMEDIATE BOND FUND
AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/97
<TABLE>
<S> <C>
One Year........................................................ 5.86%
Five Years...................................................... 6.48%
Ten Years....................................................... 7.80%
</TABLE>
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENTS IN THE FUND AND KEY BENCHMARKS
<TABLE>
<CAPTION>
LIPPER
INTERM. LEHMAN
SELECT INVEST. INTERM.
MEASUREMENT PERIOD INTERM. BOND GRADE FUNDS GOVT./CORP
(FISCAL YEAR COVERED) FUND AVG. INDEX
<S> <C> <C> <C>
04/30/87 10000.00 10000.00 10000.00
05/31/87 9949.38 9940.00 9977.00
06/30/87 10063.74 10042.38 10097.72
07/31/87 10028.90 10039.37 10120.95
08/31/87 9977.53 9992.18 10094.63
09/30/87 9793.26 9809.33 9963.40
10/31/87 10144.37 10050.64 10248.36
11/30/87 10207.52 10146.12 10313.94
12/31/87 10323.49 10252.65 10422.24
01/31/88 10711.80 10554.08 10689.05
02/28/88 10835.67 10679.67 10807.70
03/30/88 10701.68 10607.05 10766.63
04/29/88 10626.53 10573.11 10748.33
05/30/88 10571.58 10518.13 10701.03
06/29/88 10797.12 10714.82 10871.18
07/30/88 10745.27 10696.60 10848.35
08/30/88 10757.89 10709.44 10864.62
09/29/88 11029.96 10903.28 11052.58
10/30/88 11230.73 11061.38 11197.37
11/29/88 11078.97 10961.82 11106.67
12/30/88 11094.13 10979.36 11116.67
01/30/89 11236.14 11105.63 11233.39
02/28/89 11147.24 11061.20 11187.34
03/31/89 11167.00 11088.86 11235.44
04/30/89 11363.35 11279.59 11460.15
05/31/89 11645.21 11504.05 11687.06
06/30/89 11996.96 11773.24 11981.57
07/31/89 12254.33 11982.81 12227.20
08/31/89 12073.83 11845.01 12069.47
09/30/89 12124.94 11901.86 12126.19
10/31/89 12389.12 12129.19 12383.27
11/30/89 12502.81 12216.52 12500.91
12/31/89 12537.30 12240.95 12534.66
01/31/90 12366.70 12125.88 12454.44
02/28/90 12449.24 12161.05 12500.52
03/31/90 12429.51 12168.35 12516.77
04/30/90 12348.52 12074.65 12472.96
05/31/90 12565.96 12362.03 12747.37
06/30/90 12797.69 12527.68 12918.18
07/31/90 12981.99 12690.54 13097.75
08/31/90 12843.86 12564.90 13044.04
09/30/90 12943.28 12632.75 13144.48
10/31/90 13074.61 12737.60 13296.96
11/30/90 13298.38 12970.70 13499.07
12/31/90 13485.47 13141.92 13684.01
01/31/91 13621.15 13275.96 13822.22
02/28/91 13741.63 13396.77 13932.80
03/31/91 13833.54 13501.27 14027.54
04/30/91 14026.43 13659.23 14180.44
05/31/91 14084.69 13745.29 14266.94
06/30/91 14073.52 13742.54 14276.93
07/31/91 14264.91 13904.70 14435.40
08/31/91 14571.52 14202.26 14711.12
09/30/91 14882.33 14473.52 14964.15
10/31/91 15005.76 14625.50 15134.74
11/30/91 15195.00 14770.29 15308.79
12/31/91 15651.17 15206.01 15682.32
01/31/92 15392.88 15014.42 15539.62
02/29/92 15453.53 15081.98 15600.22
03/31/92 15358.69 15026.18 15539.38
04/30/92 15495.10 15122.35 15676.13
05/31/92 15775.81 15376.40 15919.11
06/30/92 16025.67 15596.28 16154.71
07/31/92 16414.42 15950.32 16476.19
08/31/92 16564.57 16085.90 16640.95
09/30/92 16769.15 16293.40 16867.27
10/31/92 16490.85 16045.74 16647.99
11/30/92 16371.04 16012.05 16589.72
12/31/92 16649.82 16244.22 16807.05
01/31/93 17057.56 16562.61 17134.79
02/28/93 17424.51 16870.67 17405.52
03/31/93 17480.11 16946.59 17475.14
04/30/93 17627.77 17066.91 17614.94
05/31/93 17590.68 17058.38 17576.19
06/30/93 17989.01 17367.14 17852.13
07/31/93 18048.48 17452.24 17894.98
08/31/93 18456.75 17776.85 18179.51
09/30/93 18561.97 17844.40 18255.86
10/31/93 18542.16 17903.29 18305.15
11/30/93 18300.32 17742.16 18202.64
12/31/93 18383.42 17834.42 18286.38
01/31/94 18626.25 18059.13 18489.35
02/28/94 18147.63 17734.06 18215.71
03/31/94 17689.39 17338.60 17915.15
04/30/94 17485.39 17163.48 17793.33
05/31/94 17460.41 17127.43 17805.78
06/30/94 17431.66 17089.75 17807.57
07/31/94 17704.29 17349.52 18063.99
08/31/94 17745.81 17387.68 18119.99
09/30/94 17507.16 17182.51 17953.29
10/31/94 17452.35 17155.02 17951.49
11/30/94 17332.28 17101.84 17870.71
12/31/94 17396.32 17183.93 17933.26
01/31/95 17705.53 17464.02 18236.33
02/28/95 18151.32 17834.26 18613.82
03/31/95 18345.05 17944.83 18719.92
04/30/95 18564.95 18179.91 18950.18
05/31/95 19355.62 18832.57 19522.47
06/30/95 19504.33 18953.10 19653.27
07/31/95 19447.73 18901.93 19655.24
08/31/95 19613.41 19109.85 19834.10
09/30/95 19802.07 19279.92 19976.91
10/31/95 20022.80 19519.00 20198.65
11/30/95 20346.20 19794.21 20463.25
12/31/95 20595.96 20045.60 20678.12
01/31/96 20744.02 20175.90 20855.95
02/29/96 20320.75 19830.89 20611.93
03/31/96 20188.69 19696.04 20506.81
04/30/96 20036.67 19579.83 20435.04
05/31/96 19971.44 19546.55 20418.69
06/30/96 20187.15 19769.38 20635.13
07/31/96 20217.23 19814.85 20697.03
08/31/96 20176.81 19797.01 20713.59
09/30/96 20484.64 20121.68 21001.51
10/31/96 20942.28 20524.12 21373.24
11/30/96 21276.38 20860.71 21655.37
12/31/96 20991.56 20677.14 21516.77
01/31/97 21042.54 20737.10 21600.69
02/28/97 21082.33 20778.58 21641.73
03/31/97 20976.28 20560.40 21492.40
04/30/97 21211.00 20827.69 21743.86
</TABLE>
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 shares of
Vista Select Intermediate Bond Fund, the Lehman Intermediate
Government/Corporate Bond Index and the Lipper Intermediate Investment Grade
Debt Funds Average for the ten years ended April 30, 1997. The performance of
the Fund assumes reinvestment of all dividends and capital gains.
The Lipper Intermediate Investment Grade Debt Funds Average represents the
average performance of a universe of 200 actively managed funds. Lipper is an
independent mutual fund performance monitor whose results are based on total
return and do not reflect a sales charge.
The Lehman Intermediate Government/Corporate Bond Index is composed of the
government and corporate indexes, which includes bonds with 5-10 year maturities
including U.S. Government Treasury and agency securities, and corporate and
Yankee bonds. The index is unmanaged and reflects the reinvestment of dividends.
An individual cannot invest in the index.
The quoted performance of Vista Select Intermediate Bond Fund includes
performance of a predecessor account for the period dating back to 4/30/87 and
prior to the Fund's commencement of operations on 12/31/96. Returns are adjusted
to reflect historical expenses at the levels indicated (absent reimbursements)
in the Expense Summary for the Fund as disclosed in the prospectus. The account
was not registered with the Securities and Exchange Commission and, therefore,
was not subject to the investment restrictions imposed by law on registered
mutual funds. If the account had been registered, the account's performance may
have been adversely affected. Also, the Fund is currently waiving certain fees.
This voluntary waiver may be modified or terminated at any time, which would
reduce returns.
5
<PAGE> 8
VISTA SELECT SHORT-TERM BOND FUND
Vista Select Short-Term Bond Fund, which seeks current income by investing in a
portfolio of short-term corporate and government securities, provided
shareholders with a total return of 0.49% for the six months ended April 30,
1997 (Class A shares, without sales charges).
MANAGEMENT TEAM TAKES ADVANTAGE OF FUND'S FLEXIBILITY
In seeking to provide you with relative stability as well as high current income
on your investment, the management team has the flexibility to choose from a
wide range of short-term securities and to adjust the Fund's duration to take
advantage of different points of value along the short-term yield curve. In
seeking to do so, the management team relies on its relative value analysis and
ability to analyze the credit, structural and liquidity characteristics of
individual securities.
Using these tools, the management team began the period with an overweight
allocation to asset-backed securities. These securities' higher yields, combined
with a neutral portfolio duration, left the Fund well positioned for November's
moderate rally.
FUND CUTS DURATION AS ECONOMIC GROWTH STRENGTHENS
At the end of 1996, the relative value analysis pointed the management team in
the direction of mortgage-backed securities as well as selected corporate
securities, whose higher yields are often beneficial in neutral-to-slightly
rising interest rate environments. This helped the Fund perform well during the
fluctuating markets in early 1997 and, subsequently, as rates began a moderate
uptrend in February. At that point, the management team also reduced duration to
neutral and moved more into the two-year maturities to take advantage of the
steepness at the short end of the yield curve.
As the reporting period ended, the Fund was maintaining a relatively-neutral
duration while continuing to emphasize mortgage-backed and corporate securities.
Given the management team's strong capabilities to analyze different types of
risks, the Fund will continue to use mortgage-backed, asset-backed and corporate
securities to enhance yield while maintaining a strong focus on relative
stability of principal.
6
<PAGE> 9
- --------------------------------------------------------------------------------
VISTA SELECT SHORT-TERM BOND FUND
AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/97
<TABLE>
<S> <C>
One Year........................................................ 4.24%
Five Years...................................................... 5.16%
Ten Years....................................................... 6.77%
</TABLE>
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENTS IN THE FUND AND KEY BENCHMARKS
<TABLE>
<CAPTION>
SELECT LIPPER ST LEHMAN 1-3
MEASUREMENT PERIOD SHORT- TERM INVEST. YR GOVT.
(FISCAL YEAR COVERED) BOND FUND FUNDS AVG. BOND INDEX
<S> <C> <C> <C>
04/30/87 10000.00 10000.00 10000.00
05/31/87 10016.35 10004.00 10014.00
06/30/87 10119.06 10086.03 10125.16
07/31/87 10135.70 10123.35 10180.84
08/31/87 10152.99 10133.47 10196.12
09/30/87 10095.84 10106.11 10158.39
10/31/87 10246.38 10242.55 10364.60
11/30/87 10336.89 10312.20 10431.97
12/31/87 10411.03 10384.38 10502.91
01/31/88 10575.32 10546.38 10659.41
02/28/88 10661.16 10643.40 10751.08
03/30/88 10678.18 10658.31 10773.65
04/29/88 10702.81 10689.21 10785.50
05/30/88 10699.33 10690.28 10779.03
06/29/88 10795.39 10791.84 10886.82
07/30/88 10815.39 10819.90 10892.27
08/30/88 10836.81 10851.28 10919.50
09/29/88 10949.12 10966.30 11046.16
10/30/88 11046.70 11073.77 11157.73
11/29/88 11032.22 11066.02 11129.84
12/30/88 11066.52 11110.28 11154.32
01/30/89 11147.95 11202.50 11242.44
02/28/89 11167.27 11221.54 11243.56
03/31/89 11203.74 11273.16 11290.79
04/30/89 11346.18 11414.08 11474.83
05/31/89 11495.57 11577.30 11636.62
06/30/89 11673.83 11775.27 11853.06
07/31/89 11821.72 11925.99 12027.30
08/31/89 11789.71 11904.53 11956.34
09/30/89 11846.92 11966.43 12025.69
10/31/89 12005.23 12106.44 12212.09
11/30/89 12096.29 12202.08 12322.00
12/31/89 12135.52 12261.87 12368.82
01/31/90 12130.86 12232.44 12382.43
02/28/90 12203.58 12291.15 12448.05
03/31/90 12247.81 12347.69 12485.40
04/30/90 12271.39 12360.04 12515.36
05/31/90 12440.06 12538.03 12708.10
06/30/90 12560.09 12658.39 12841.53
07/31/90 12692.15 12810.29 12996.92
08/31/90 12720.35 12829.51 13043.70
09/30/90 12802.56 12900.07 13146.75
10/31/90 12913.00 12964.57 13292.68
11/30/90 13056.73 13087.73 13421.62
12/31/90 13204.90 13215.99 13579.99
01/31/91 13310.29 13301.90 13707.65
02/28/91 13404.56 13420.28 13795.37
03/31/91 13469.61 13550.46 13887.80
04/30/91 13640.12 13688.68 14021.13
05/31/91 13758.46 13792.71 14105.25
06/30/91 13790.39 13835.47 14157.44
07/31/91 13909.72 13950.30 14279.20
08/31/91 14112.21 14131.66 14474.82
09/30/91 14291.55 14281.45 14628.25
10/31/91 14477.47 14428.55 14786.24
11/30/91 14603.21 14556.96 14938.54
12/31/91 14852.16 14760.76 15165.60
01/31/92 14801.27 14741.57 15145.89
02/29/92 14867.38 14796.12 15191.33
03/31/92 14857.94 14793.16 15186.77
04/30/92 14983.29 14896.71 15324.97
05/31/92 15152.71 15035.25 15465.96
06/30/92 15371.83 15169.06 15622.16
07/31/92 15593.70 15332.89 15801.82
08/31/92 15735.44 15438.69 15929.81
09/30/92 15886.44 15557.56 16079.55
10/31/92 15757.01 15464.22 15987.90
11/30/92 15701.37 15453.39 15970.31
12/31/92 15851.86 15570.84 16112.45
01/31/93 16061.89 15732.78 16281.63
02/28/93 16256.60 15875.94 16411.88
03/31/93 16331.95 15931.51 16462.76
04/30/93 16426.69 16019.13 16563.18
05/31/93 16403.86 16023.94 16523.43
06/30/93 16520.66 16139.31 16647.36
07/31/93 16572.14 16200.64 16683.98
08/31/93 16702.90 16336.73 16822.46
09/30/93 16758.14 16392.27 16876.29
10/31/93 16798.34 16441.45 16913.42
11/30/93 16818.05 16436.51 16916.80
12/31/93 16938.52 16502.26 16984.47
01/31/94 17105.61 16611.18 17091.47
02/28/94 16978.60 16519.81 16987.21
03/31/94 16829.13 16410.78 16900.58
04/30/94 16762.82 16354.99 16836.36
05/31/94 16774.68 16369.71 16858.24
06/30/94 16849.92 16389.35 16900.39
07/31/94 16999.91 16512.27 17052.49
08/31/94 17008.22 16566.76 17108.76
09/30/94 16940.32 16545.22 17069.41
10/31/94 16969.77 16573.35 17108.67
11/30/94 16911.35 16543.52 17036.82
12/31/94 16826.44 16545.17 17069.19
01/31/95 17016.42 16697.39 17301.33
02/28/95 17164.34 16891.08 17536.63
03/31/95 17272.14 16980.60 17634.83
04/30/95 17401.76 17131.73 17791.78
05/31/95 17602.50 17421.25 18096.02
06/30/95 17612.05 17515.33 18193.74
07/31/95 17616.25 17562.62 18266.51
08/31/95 17751.40 17676.78 18376.11
09/30/95 17955.62 17772.23 18466.16
10/31/95 18091.95 17909.08 18619.43
11/30/95 18256.22 18054.14 18777.69
12/31/95 18406.27 18191.35 18920.40
01/31/96 18572.98 18327.79 19081.22
02/29/96 18486.91 18250.81 19006.81
03/31/96 18469.15 18232.56 18991.60
04/30/96 18484.94 18238.03 19010.59
05/31/96 18510.32 18267.21 19052.42
06/30/96 18677.32 18391.43 19191.50
07/31/96 18724.91 18461.32 19266.35
08/31/96 18755.74 18516.70 19337.63
09/30/96 18910.07 18683.35 19513.60
10/31/96 19175.71 18877.66 19734.11
11/30/96 19273.16 19028.68 19880.14
12/31/96 18936.93 19026.78 19884.12
01/31/97 19055.82 19110.49 19979.56
02/28/97 19115.39 19165.91 20027.51
03/31/97 19101.67 19144.83 20011.49
04/30/97 19269.31 19290.33 20175.58
</TABLE>
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 shares of
Vista Select Short-Term Bond Fund, the Lehman 1-3 Year Government Bond Index and
the Lipper Short-Term Investment Grade Funds Average for the ten years ended
April 30, 1997. The performance of the Fund assumes reinvestment of all
dividends and capital gains.
The Lipper Short-Term Investment Grade Debt Funds Average represents the average
performance of a universe of 111 actively managed short investment grade debt
funds. Lipper is an independent mutual fund performance monitor whose results
are based on total return and do not reflect a sales charge.
The Lehman Brothers 1-3 Year Government Bond Index is composed of all bonds
covered by the Government Bond Index with maturities of one to three years. The
index is unmanaged and reflects the reinvestment of dividends. An individual
cannot invest in the index.
The quoted performance of Vista Select Short-Term Bond Fund includes performance
of a predecessor account for the period dating back to 4/30/87 and prior to the
Fund's commencement of operations on 12/31/96. Returns are adjusted to reflect
historical expenses at the levels indicated (absent reimbursements) in the
Expense Summary for the Fund as disclosed in the Prospectus. The account was not
registered with the Securities and Exchange Commission and, therefore, was not
subject to the investment restrictions imposed by law on registered mutual
funds. If the account had been registered, the account's performance may have
been adversely affected. Also, the Fund is currently waiving certain fees. This
voluntary waiver may be modified or terminated at any time, which would reduce
returns.
7
<PAGE> 10
VISTA SELECT BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- 97.6%
- ------------------------------------------------------------------------------------
<C> <S> <C>
U.S. TREASURY SECURITIES -- 23.4%
---------------------------------
U.S. Treasury Notes & Bonds,
$18,860,000 8.250%, 07/15/98 $ 19,331,500
10,000,000 8.750%, 08/15/00 10,667,200
10,000,000 8.500%, 11/15/00 10,628,100
12,655,000 8.000%, 05/15/01 13,307,492
6,200,000 10.750%, 02/15/03 7,412,844
12,000,000 11.125%, 08/15/03 14,718,720
9,748,000 8.500%, 02/15/20 11,327,468
12,010,000 8.750%, 08/15/20 14,316,280
5,500,000 8.125%, 08/15/21 6,175,455
2,851,000 7.125%, 02/15/23 2,876,402
1,000,000 Treasury Lincs 6.000%, 08/15/09 904,080
-------------
TOTAL U.S. TREASURY SECURITIES (COST $112,644,968) 111,665,541
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 29.8%
-------------------------------------------
Federal Home Loan Mortgage Corp.,
5,005,000 7.585%, 09/19/06 5,045,641
4,500,000 7.675%, 01/30/07 4,445,145
4,633,260 GOLD Pool #D68794, 7.000%, 03/01/26 4,508,718
2,141,947 Pool #170169, 9.000%, 06/01/16 2,259,411
Federal National Mortgage Association,
2,500,000 6.950%, 11/13/06 2,447,650
4,000,000 7.550%, 03/27/07 3,995,640
5,000,000 7.440%, 11/08/06 4,944,550
9,600,000 7.780%, 09/29/06 9,619,488
5,761,224 ARM Pool #313539, 7.391%, 11/01/18 5,998,874
9,000,000 Global Bond, 8.500%, 02/01/05 9,355,770
4,862,265 Pool #250738, 7.000%, 11/01/11 4,816,657
5,713,511 Pool #250739, 7.500%, 11/01/11 5,756,362
9,702,419 Pool #303999, 8.000%, 12/01/24 9,875,316
4,814,590 Pool #337259, 6.500%, 02/01/26 4,546,803
9,475,236 Pool #362451, 7.500%, 12/01/07 9,581,832
4,059,629 Pool #58013, 8.500%, 08/01/12 4,205,938
Government National Mortgage Association,
1,008,821 Pool #345791, 8.000%, 11/15/26 1,022,370
5,230,744 Pool #369459, 8.000%, 10/15/24 5,315,744
5,949,544 Pool #393178, 8.000%, 08/15/24 6,046,224
1,010,000 Pool #399240, 8.000%, 04/15/27 1,023,564
3,830,558 Pool #411546, 6.500%, 12/15/25 3,606,700
</TABLE>
See notes to financial statements.
8
<PAGE> 11
VISTA SELECT BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ------------------------------------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- (continued)
Government National Mortgage Association, (continued)
$ 1,009,285 Pool #429877, 8.000%, 03/15/27 $ 1,022,840
1,008,271 Pool #437334, 8.000%, 01/15/27 1,021,812
1,009,019 Pool #438010, 8.000%, 12/15/26 1,022,570
1,007,379 Pool #438297, 8.000%, 12/15/26 1,020,908
1,009,160 Pool #440331, 8.000%, 03/15/27 1,022,713
1,009,894 Pool #440939, 8.000%, 12/15/26 1,023,457
1,007,342 Pool #441725, 8.000%, 12/15/26 1,020,870
1,007,362 Pool #441734, 8.000%, 01/15/27 1,020,891
1,007,850 Pool #443297, 8.000%, 01/15/27 1,021,385
1,008,874 Pool #448478, 8.000%, 03/15/27 1,022,423
3,785,958 Pool #780047, 9.000%, 12/15/17 4,031,363
5,661,165 Pool #780201, 9.000%, 12/15/17 6,028,122
3,424,184 Pool #780325, 8.500%, 11/15/09 3,559,336
4,900,965 Pool #780508, 8.000%, 11/15/24 5,000,454
5,000,000 Tennessee Valley Authority, 6.235%, 07/15/45 4,935,000
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST 142,192,541
$143,096,173) -------------
CORPORATE NOTES & BONDS -- 23.8%
--------------------------------
AEROSPACE --
4,500,000 Lockheed Martin Corp. 7.450%, 06/15/04 4,566,690
BANKING --
4,000,000 Bankers Trust Capital Trust B, 7.900%, 01/15/27 3,750,000
3,500,000 International Bank Reconciliation & Development 3,526,250
Corp., 9.000%, 08/07/97
COMPUTERS/COMPUTER HARDWARE --
5,000,000 International Business Machines, Corp., 7.500%, 5,014,150
06/15/13
ENTERTAINMENT/LEISURE --
5,000,000 Time Warner Inc., 7.750%, 06/15/05 4,995,350
FINANCIAL SERVICES --
3,000,000 Corp. Andina de Fomento, Yankee (Venezuela) 7.375%, 3,035,940
07/21/00
5,000,000 Federal Home Loan Bank, 8.750%, 02/03/05 5,078,900
1,000,000 General Electric Capital Corp., 8.300%, 09/20/09 1,099,360
7,000,000 Goldman Sachs Group, LP, 7.125%, 03/01/03 # 6,944,140
1,000,000 Lehman Brothers Holdings, Inc., 7.625%, 06/15/97 1,002,100
</TABLE>
See notes to financial statements.
9
<PAGE> 12
VISTA SELECT BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ------------------------------------------------------------------------------------
<C> <S> <C>
FINANCIAL SERVICES -- (continued)
$ 1,500,000 Lehman Brothers Inc., 7.375%, 01/15/07 $ 1,474,020
5,000,000 Morgan Stanley Group, Inc., 7.250%, 10/15/23 4,552,950
1,850,000 Morgan Stanley Group, Inc., 9.375%, 06/15/01 2,010,858
6,000,000 The Money Store, Inc., 8.050%, 04/15/02 6,046,920
GOVERNMENT ISSUE --
2,250,000 Republic of Colombia, 8.000%, 06/14/01 # 2,257,740
6,000,000 Republic of Colombia, Global Bond, 8.375%, 02/15/27 5,452,500
OIL & GAS --
3,000,000 Petroliam Nasional Bhd., (Malaysia), 7.625%, 2,949,270
10/15/26
TELECOMMUNICATIONS --
8,000,000 360 Communications Corp., 7.500%, 03/01/06 7,874,400
4,600,000 Bellsouth Telecommunications, 7.875%, 08/01/32 4,536,014
5,000,000 Cincinnati Bell Inc., 9.100%, 06/15/00 5,261,150
5,000,000 New York Telephone Co., 9.375%, 07/15/31 5,544,000
UTILITIES --
2,600,000 Chilgener S.A., Yankee (Chile) 6.500%, 01/15/06 2,430,038
8,000,000 Commonwealth Edison Financing II, 8.500%, 01/15/27 7,834,240
4,000,000 Enersis SA, Yankee (Cayman Islands) 6.900%, 12/01/06 3,796,440
8,000,000 Ras Laffan Liquefied Natural Gas, (Qatar), 8.294%, 8,110,608
03/15/14 #
4,600,000 Tenaga Nasional, Yankee, (Malaysia), 7.500%, 4,289,638
01/15/96 # -------------
TOTAL CORPORATE NOTES & BONDS (COST $114,309,318) 113,433,666
-------------
MORTGAGE BACKED SECURITIES -- 18.9%
-----------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS --
Federal Home Loan Mortgage Corp.,
7,977,199 Ser. 77, Class G, 8.500%, 01/15/20 8,211,490
7,500,000 Ser. 1343, Class H, 7.500%, 05/15/19 7,577,325
7,180,000 Ser. 1360, Class PK, 10.000%, 12/15/20 8,097,676
5,000,000 Ser. 1761, Class G, 8.000%, 06/15/21 5,123,400
800 Ser. 1819, Class E, 6.000%, 02/15/11 741
Federal National Mortgage Association,
4,471,330 Ser. 1989-81, Class E, 9.000%, 03/25/19 4,650,183
1,000,000 Ser. 1992-118, Class J, 7.500%, 07/25/02 991,870
8,800,000 Ser. 1992-132, Class PL, 8.000%, 03/25/21 8,984,184
2,000,000 Ser. 1992-136, Class PG, 6.000%, 08/25/19 1,855,000
</TABLE>
See notes to financial statements.
10
<PAGE> 13
VISTA SELECT BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ------------------------------------------------------------------------------------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS -- (continued)
$10,000,000 Ser. 1992-163, Class FE, 6.406%, 09/25/22 $ 10,153,100
10,384,110 Ser. 1997-17, Class A, 7.250%, 03/31/04 10,360,872
4,135,981 Ser. G92-38, Class VC, 7.500%, 12/25/01 4,142,433
1,000,000 Ser. G93-34, Class PJ 6.600%, 12/25/22 942,180
5,000,000 Prudential Home Mortgage Securities, Ser. 1993-14, 4,837,500
Class A16, 7.000%, 05/23/23
318,518 Resolution Trust Corp., Ser. 1992-12, Class A2C, 317,123
7.500%, 08/25/23 -------------
76,245,077
-------------
COMMERCIAL MORTGAGE BACKED SECURITIES --
5,936,797 Commercial Mortgage Acceptance Corp., Ser. 1996-C1, 5,962,771
Class A, 6.606%, 12/25/20 #
3,000,000 Morgan Stanley Capital I, Ser. 1996-WF1, Class A3, 3,008,438
7.380%, 08/15/06 #
5,000,000 Nomura Asset Securities Corp., Ser. 1996-MD5, Class 5,104,688
A1B, 7.120%, 04/13/36 -------------
14,075,897
-------------
TOTAL MORTGAGE BACKED SECURITIES (COST $90,271,843) 90,320,974
-------------
ASSET BACKED SECURITIES -- 1.7%
-------------------------------
6,500,000 Nomura CBO, Ltd., 6.67%, Ser. 1997-1, Class A2, 6,581,250
6.670%, 05/15/07 #
1,759,744 The Money Store Home Equity Trust, Ser. 1994-B, Class 1,764,531
A3, 7.100%, 11/15/16 -------------
TOTAL ASSET BACKED SECURITIES (COST $8,341,462) 8,345,781
------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS 465,958,503
(COST $468,663,764)
------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT OBLIGATIONS -- 2.4%
------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 2.4%
----------------------------
11,370,000 Aubrey G. Lanston, 5.20%, due 05/01/97, (Dated 11,370,000
04/30/97; Proceeds $11,371,658, Secured by U.S.
Treasury Note; $11,412,000 at 6.625%, 07/31/01;
Market Value $11,637,107)
(COST $11,370,000)
------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0% $ 477,328,503
(COST $480,033,764)
------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
11
<PAGE> 14
VISTA SELECT INTERMEDIATE BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- 89.6%
- ------------------------------------------------------------------------------------
<C> <S> <C>
U.S. TREASURY SECURITIES -- 23.2%
---------------------------------
U.S. Treasury Notes & Bonds,
$13,500,000 7.875%, 04/15/98 $ 13,734,090
8,000,000 8.250%, 07/15/98 8,200,000
15,000,000 9.250%, 08/15/98 15,576,600
10,000,000 8.500%, 02/15/00 10,521,900
14,500,000 8.750%, 08/15/00 15,467,440
3,700,000 8.750%, 08/15/20 4,410,511
-------------
TOTAL U.S. TREASURY SECURITIES (COST $68,082,779) 67,910,541
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 29.3%
-------------------------------------------
Federal Home Loan Bank,
10,000,000 12.500%, 07/22/97 10,153,100
11,500,000 6.930%, 09/26/02 11,385,000
Federal Home Loan Mortgage Corp.,
5,000,000 7.675%, 01/30/07 4,939,050
6,773,058 Gold, Pool #E00455, 7.000%, 10/01/11 6,711,626
Federal National Mortgage Association,
5,000,000 7.440%, 11/08/06 4,944,550
4,000,000 8.250%, 12/18/00 4,205,000
4,801,020 ARM Pool #313539, 7.391%, 11/01/18 4,999,062
11,000,000 Global Bond, 8.500%, 02/01/05 11,410,652
4,787,528 Pool #250414, 7.000%, 11/01/25 4,648,355
4,814,590 Pool #337259, 6.500%, 02/01/26 4,546,803
1,000,000 Pool #372176, 10.000%, 09/01/25 1,088,750
Government National Mortgage Association,
4,860,723 Pool #2202, 7.000%, 04/20/26 4,681,411
4,732,617 Pool #780047, 9.000%, 12/15/17 5,039,385
6,893,305 Pool #780508, 8.000%, 11/15/24 7,033,238
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST 85,785,982
$86,564,269) -------------
CORPORATE NOTES & BONDS -- 20.0%
--------------------------------
FINANCIAL SERVICES --
4,000,000 Corp. Andina de Fomento, Yankee (Venezuela), 7.250%, 3,996,250
03/01/07
8,000,000 Ford Motor Credit Corp., 8.200%, 02/15/02 8,380,320
7,900,000 General Electric Capital Corp., 8.200%, 10/30/03 8,277,146
1,791,717 Hero Asia BVI Co., Ltd., Yankee (China), 9.110%, 1,856,810
10/15/01 #
8,000,000 Lehman Brothers Inc., 7.375%, 01/15/07 7,861,440
</TABLE>
See notes to financial statements.
12
<PAGE> 15
VISTA SELECT INTERMEDIATE BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ------------------------------------------------------------------------------------
<C> <S> <C>
FINANCIAL SERVICES -- (continued)
$ 3,500,000 Termoemcali Funding Corp., 10.125%, 12/15/14 # $ 3,648,750
GOVERNMENT BOND --
5,000,000 Republic of Colombia, 7.625%, 02/15/07 4,691,600
2,000,000 Republic of Colombia, 8.000%, 06/14/01 2,006,880
OIL & GAS --
2,775,000 Petroleum Geo-Services ASA, Yankee (Norway), 7.500%, 2,757,656
03/21/07
3,764,778 YPF Sociedad Anonima, Yankee (Argentina), 7.500%, 3,797,720
10/26/02
UTILITIES --
4,000,000 Chilgener SA, Yankee (Chile), 6.500%, 01/15/06 3,738,520
3,100,000 Enersis SA, Yankee (Cayman Islands), 6.900%, 2,942,241
12/01/06
4,500,000 Northern States Power, Minnesota, 7.875%, 10/01/01 4,630,950
-------------
TOTAL CORPORATE NOTES & BONDS (COST $59,067,404) 58,586,283
-------------
MORTGAGE BACKED SECURITIES -- 15.4%
-----------------------------------
MORTGAGE BACKED PASS-THRU SECURITIES --
8,910,000 Federal National Mortgage Association, 30 year, TBA 9,709,116
10.000%, 04/15/27 -------------
COLLATERALIZED MORTGAGE OBLIGATIONS --
Federal Home Loan Mortgage Corp.,
4,000,000 Ser. 1360, Class PK, 10.000%, 12/15/20 4,511,240
5,000,000 Ser. 1763, Class J, 8.500%, 03/15/24 5,302,855
3,400,000 Ser. 1865, Class G, 8.000%, 08/15/24 3,459,507
Federal National Mortgage Association,
3,911,162 Ser. 1989-81, Class E, 9.000%, 03/25/19 4,067,609
6,100,000 Ser. 1992-163, Class FE, 6.406%, 09/25/22 6,193,391
8,000,000 Prudential Home Mortgage Securities, Ser. 1993-14, 7,740,000
Class A16, 7.000%, 05/23/23 -------------
31,274,602
-------------
</TABLE>
See notes to financial statements.
13
<PAGE> 16
VISTA SELECT INTERMEDIATE BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ------------------------------------------------------------------------------------
<C> <S> <C>
COMMERCIAL MORTGAGE BACKED SECURITIES --
$ 3,957,865 Commercial Mortgage Acceptance Corp., Ser. 1996-C1, $ 3,975,180
Class A, 6.606%, 12/25/20 -------------
TOTAL MORTGAGE BACKED SECURITIES (COST $45,105,874) 44,958,898
-------------
ASSET BACKED SECURITY -- 1.7%
-----------------------------
5,000,000 Nomura CBO, Ltd., 6.67%, Ser. 1997-1, Class A2, 5,062,500
6.670%, 05/15/07 (COST $5,049,990) #
------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS (COST $263,870,316) 262,304,204
------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 9.6%
------------------------------------------------------------------------------------
U.S. TREASURY SECURITIES -- 3.0%
--------------------------------
9,100,000 U.S. Treasury Bill, 5.190%, 12/11/97 (COST $8,806,357) 8,792,511
-------------
COMMERCIAL PAPER -- 6.6%
------------------------
19,368,000 Household Finance Corp. 5.500%, 05/01/97 19,368,000
(COST $19,368,000)
------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $28,174,357) 28,160,511
====================================================================================
TOTAL INVESTMENTS (COST $292,044,673) 99.2% $ 290,464,715
------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
14
<PAGE> 17
VISTA SELECT SHORT-TERM BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- 98.3%
- ------------------------------------------------------------------------------------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS -- 16.5%
----------------------------------
U.S. Treasury Notes,
$1,500,000 8.250%, 07/15/98 $ 1,537,500
3,000,000 6.250%, 03/31/99 2,999,520
------------
TOTAL U.S. TREASURY OBLIGATIONS (COST $4,527,213) 4,537,020
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 19.7%
-------------------------------------------
Federal Home Loan Mortgage Corp.,
937,025 ARM Pool #846416, 7.757%, 06/01/28 983,727
1,294,901 Gold Pool #N99071, 6.000%, 08/01/00 1,271,321
Federal National Mortgage Association,
589,881 Pool #100143, 11.500%, 10/15/18 678,547
360,366 Pool #100144, 11.500%, 03/04/19 414,534
Government National Mortgage Association,
1,013,708 ARM Pool #8457, 7.125%, 07/20/24 1,041,899
947,180 Pool #780201, 9.000%, 12/15/17 1,008,576
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $5,405,484) 5,398,604
------------
STATE & MUNICIPAL OBLIGATION -- 4.2%
------------------------------------
1,150,000 New York City, New York, Taxable, Ser. I, GO 6.850%, 1,155,750
04/15/99 (COST $1,150,000) ------------
OTHER NOTES & BONDS -- 11.7%
----------------------------
GLOBAL FINANCIAL SERVICES --
500,000 Corp. Andina de Fomento, Yankee (Venezuela), 7.375%, 505,990
07/21/00
GLOBAL PROJECT FINANCE --
229,707 Hero Asia BVI Co., Ltd., Yankee (China) 9.110%, 238,053
10/15/01
SOVEREIGN BONDS --
250,000 Republic of Colombia, 8.000%, 06/14/01 250,860
MULTI-MEDIA --
800,000 News America Holdings, 7.450%, 06/01/00 809,640
OIL & GAS --
1,000,000 Occidental Petroleum, 5.850%, 11/09/98 989,510
413,712 YPF Sociedad Anonima, Yankee (Argentina) 7.500%, 417,332
10/26/02 ------------
TOTAL OTHER NOTES & BONDS (COST $3,223,080) 3,211,385
------------
</TABLE>
See notes to financial statements.
15
<PAGE> 18
VISTA SELECT SHORT-TERM BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ------------------------------------------------------------------------------------
<C> <S> <C>
MORTGAGE BACKED SECURITIES -- 31.4%
-----------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 25.4%
Federal Home Loan Mortgage Corp.,
$1,000,000 Ser. 1206, Class GA, 7.000%, 03/15/18 $ 1,003,430
900,000 Ser. 1311, Class G, 7.500%, 05/15/19 910,125
1,400,000 Ser. 1574, Class PD, 5.550%, 03/15/13 1,388,610
1,511,665 Federal National Mortgage Association, FRN Ser. G-15, 1,537,636
Class F, 6.106%, 06/25/21
1,000,000 GE Capital Mortgage Services, Inc., Ser. 1994-8, Class 990,000
A3, 6.000%, 02/25/24
Resolution Trust Corp.,
31,646 Ser. 1992-12, Class A2C, 7.500%, 08/25/23 31,508
1,130,783 Ser. 1992-16, Class B2, 7.750%, 08/25/25 1,132,903
------------
6,994,212
------------
COMMERCIAL MORTGAGE BACKED SECURITIES -- 6.0%
766,888 Blackrock Capital Finance L.P., Ser. 1996-C2, Class A, 768,325
7.642%, 11/15/26 #
878,859 Kidder Peabody Acceptance Corp., Ser. 1993-M1, Class 886,549
A1, 7.150%, 04/25/25
------------
1,654,874
------------
TOTAL MORTGAGE BACKED SECURITIES (COST $8,670,588) 8,649,086
------------
ASSET BACKED SECURITIES -- 14.8%
--------------------------------
1,000,000 Boatments Auto Trust, Ser. 1996-A, Class A3, 6.750%, 1,005,620
01/15/03
1,000,000 Capital Equipment Receivables Trust, Ser. 1996-1, Class 998,150
A3, 6.110%, 07/15/99
953,020 Ford Credit Grantor Trust, Ser. 1995-B, Class A, 5.900%, 949,446
10/15/00
1,098,415 The Money Store Home Equity Trust, Ser. 1994-B, Class A3, 1,101,402
7.100%, 11/15/16 ------------
TOTAL ASSET BACKED SECURITIES (COST $4,056,948) 4,054,618
------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS 27,006,463
(COST $27,033,313)
------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
16
<PAGE> 19
VISTA SELECT SHORT-TERM BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- .8%
- ------------------------------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT -- .8%
---------------------------
$ 209,000 Aubrey G. Lanston, 5.20%, due 05/01/97, (Dated 04/30/97, $ 209,000
Proceeds $209,030; Secured by; U.S. Treasury Notes at
6.25%, 7/31/01; Market Value $214,109)
(COST $209,000)
- ----------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.1% $ 27,215,463
(COST $27,242,313)
- ----------------------------------------------------------------------------------------
# = Security may only be sold to qualified institutional buyers.
ARM = Adjustable rate mortgage.
FRN = Floating rate note.
TBA = To Be Announced.
</TABLE>
See notes to financial statements.
17
<PAGE> 20
VISTA MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Select Vista Select
Vista Select Intermediate Short-Term
Bond Bond Bond
Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value (Note 1).............. $477,328,503 $290,464,715 $ 27,215,463
Cash.................................................. -- 324,463 --
Receivables:
Investment securities sold.......................... -- -- 1,375,998
Interest............................................ 6,886,735 3,459,291 212,894
Fund shares sold.................................... 1,570,714 254,800 75,500
Expense reimbursement from Distributor.............. 22,050 16,940 10,669
Unamortized organization costs (Note 1)............... 43,551 16,186 6,189
Other Assets.......................................... 45,653 21,714 12,236
------------ ------------ ------------
Total assets.................................... 485,897,206 294,558,109 28,908,949
------------ ------------ ------------
LIABILITIES:
Payable for investment securities purchased........... -- -- 1,273,724
Payable for Fund shares redeemed...................... 8,064 38,072 --
Payable to custodian.................................. 6,037,269 -- 26,569
Dividends payable..................................... 2,515,275 1,513,724 136,395
Accrued liabilities: (Note 2)
Custodian........................................... 22,050 16,940 4,169
Organization Costs Payable.......................... 13,492 6,429 683
Other............................................... 78,246 60,848 15,705
------------ ------------ ------------
Total Liabilities............................... 8,674,396 1,636,013 1,457,245
------------ ------------ ------------
NET ASSETS:
Paid in capital....................................... 478,447,845 295,843,604 27,626,257
Accumulated undistributed net investment income....... 354,035 139,602 9,985
Accumulated undistributed net realized gain (loss) on
investment transactions............................. 1,126,190 (1,481,152) (157,688)
Net unrealized appreciation/depreciation of
investments......................................... (2,705,260) (1,579,958) (26,850)
------------ ------------ ------------
Net Assets:......................................... $477,222,810 $292,922,096 $ 27,451,704
============ ============ ============
Shares of beneficial interest outstanding ($.001 par
value; unlimited number of shares authorized):........ 11,987,256 29,350,180 2,595,589
Net asset value, maximum offering price and redemption
price per share*.................................... $ 39.81 $ 9.98 $ 10.58
============ ============ ============
Cost of Investments.................................... $480,033,764 $292,044,673 $ 27,242,313
============ ============ ============
</TABLE>
- ---------------
* Net assets/shares outstanding.
See notes to financial statements.
18
<PAGE> 21
VISTA MUTUAL FUNDS
STATEMENT OF OPERATIONS
For the period January 1, 1997* through April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Select Vista Select
Vista Select Intermediate Short-Term
Bond Bond Bond
Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
INTEREST INCOME............................................ $ 11,270,710 $ 6,128,752 $ 591,460
----------- ----------- ---------
EXPENSES: (Note 2)
Administration fees....................................... 242,842 138,804 13,561
Investment Advisory fees.................................. 485,684 277,608 22,601
Custodian fees............................................ 44,100 33,879 8,337
Amortization of organization costs (Note 1)............... 2,863 2,160 825
Printing and postage...................................... 1,644 2,451 1,233
Professional fees......................................... 12,678 11,798 7,531
Registration costs........................................ 2,452 5,218 1,233
Transfer agent fees....................................... 8,095 9,254 4,089
Trustees fees............................................. 8,095 4,627 452
Other..................................................... 6,266 15,384 1,450
----------- ----------- ---------
Total expenses...................................... 814,719 501,183 61,312
----------- ----------- ---------
Less amounts waived (Note 2D)............................. 728,526 416,412 36,162
Less expenses borne by the Distributor.................... 44,100 33,879 14,837
----------- ----------- ---------
Net expenses............................................ 42,093 50,892 10,313
----------- ----------- ---------
Net investment income................................... 11,228,617 6,077,860 581,147
----------- ----------- ---------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on:
Investments............................................. 1,126,191 (1,481,152) (157,688)
Change in net unrealized appreciation/depreciation on
investments............................................. (8,226,883) (1,650,250) 4,167
----------- ----------- ---------
Net realized and unrealized gain (loss) on investments.... (7,100,692) (3,131,402) (153,521)
----------- ----------- ---------
Net increase in net assets from operations................ $ 4,127,925 $ 2,946,458 $ 427,626
=========== =========== =========
</TABLE>
- ---------------
* Commencement of operations.
See notes to financial statements.
19
<PAGE> 22
VISTA MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the period January 1, 1997* through April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Select Vista Select
Vista Select Intermediate Short-Term
Bond Bond Bond
Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS OPERATIONS:
Net investment income.................................. $ 11,228,617 $ 6,077,860 $ 581,147
Net realized gain (loss) on investments transactions... 1,126,191 (1,481,152) (157,688)
Change in net unrealized appreciation/depreciation on
investments.......................................... (8,226,883) (1,650,250) 4,167
------------ ------------ -----------
Increase in net assets from operations............... 4,127,925 2,946,458 427,626
------------ ------------ -----------
Distributions to shareholders from net investment
income............................................... (10,874,583) (5,938,258) (571,162)
Increase from capital share transactions (Note 5)...... 483,969,468 295,913,896 27,595,240
------------ ------------ -----------
Total increase in net assets..................... 477,222,810 292,922,096 27,451,704
NET ASSETS:
Beginning of period.................................... -- -- --
------------ ------------ -----------
End of period.......................................... $477,222,810 $292,922,096 $ 27,451,704
============ ============ ===========
</TABLE>
- ---------------
* Commencement of operations.
See notes to financial statements.
20
<PAGE> 23
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES -- Mutual Fund Select
Group (the "Trust") was organized as a Massachusetts Business Trust, and is
registered under the Investment Company Act of 1940, as amended, (the "1940
Act") as an open-end management investment company. Vista Select Bond Fund
("VBF"), Vista Select Intermediate Bond Fund ("VIBF") and Vista Select
Short-Term Bond Fund ("VSTBF"), collectively, the "Funds", are separate
portfolios of The Trust.
The Funds were established in December 1996 for the conversion of the Chase
Manhattan Bank Common Trust Funds. Effective January 1, 1997, the Chase Common
Trust Funds contributed securities and other assets in exchange for shares of
the newly created Funds in a tax-free exchange.
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.
The following is a summary of significant accounting policies followed by
the Funds:
A. Valuation of investments -- Bonds and other fixed income securities
(other than short-term obligations), including listed issues, are valued on
the basis of valuations supplied by pricing services or by matrix pricing
systems of a major dealer in bonds. 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. Portfolio
securities for which there are no such quotations or valuations are valued
at fair value as determined in good faith by or at the direction of the
Trustees.
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,
subcustodian, or a bank with which the custodian bank has entered into a
subcustodian agreement, or is segregated in the Federal Reserve Book Entry
System. In connection with transactions in repurchase agreements, if the
seller defaults and the value of the collateral declines, or if the seller
enters an insolvency proceeding, realization of the collateral by the Trust
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 discounts.
D. Expenses -- Expenses directly attributable to a Fund are charged to
that Fund; other expenses of the Trust are allocated proportionately among
each of the Funds within the Trust in relation to the net assets of each
Fund or on another reasonable basis.
E. Organization costs -- Organization and initial registration costs
incurred in connection with establishing the Funds have been deferred and
are being amortized on a straight-line basis over a sixty month period
beginning at the commencement of operations of each Fund.
F. 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.
G. Distributions to shareholders -- Dividends and distributions paid to
shareholders are recorded on the ex-dividend date. The amount of dividends
and distributions from net investment income and net realized capital gains
is determined in accordance with
21
<PAGE> 24
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
Federal income tax regulations, which may differ from generally accepted
accounting principles. To the extent these "book/tax" differences are
permanent in nature, (i.e., that they result from other than timing of
recognition -- "temporary differences") such amounts are reclassified within
the capital accounts based on their Federal 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.
H. Dollar rolls -- The funds enter into dollar rolls in which the Funds
sell mortgage-backed securities for delivery in the current month and
simultaneously contract to repurchase substantially similar (same type,
coupon and maturity) securities on a specified future date. During the roll
period, the Funds forgo principal and interest paid on the securities. The
Funds are compensated by the interest earned on the cash proceeds of the
initial sale and a fee earned for entering into the roll transaction. The
fee is amortized into income over the duration of the roll transaction.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A. Investment advisory fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank ("Chase" or the "Adviser") acts as the
Investment Adviser to the Funds. Chase is a direct wholly-owned subsidiary
of The Chase Manhattan Corporation. As Investment Adviser, Chase supervises
the investments of the Funds and for such services is paid a fee. The fee is
computed daily and paid monthly at an annual rate equal to 0.30%, 0.30% and
0.25% of the average daily net assets for VBF, VIBF and VSTBF, respectively.
The Adviser, voluntarily waived all or a portion of its fees as outlined in
Note 2.D. 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% for VBF and VIBF, and 0.10%
for VSTBF of average daily net assets.
B. Sub-administration fees -- Pursuant to a Sub-Administration Agreement,
Vista Fund Distributors, Inc. (the "Distributor"), a wholly owned subsidiary
of The BISYS Group, Inc., 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 of 0.05% of the average daily net assets of each Fund.
The Distributor voluntarily waived all or a portion of distribution fees as
outlined in Note 2.D. below.
C. Administration fee -- Pursuant to an Administration Agreement, Chase
(the "Administrator") provides certain administration services to the Trust.
For these services and facilities, the Administrator receives from each Fund
a fee computed at the annual rate equal to 0.10% of the respective Fund's
average daily net assets. The Administrator voluntarily waived all or a
portion of the administration fees as outlined in Note 2.D. below.
D. Waivers of fees -- For the four month period ended April 30, 1997, the
Investment Adviser and Administrator voluntarily waived fees for each of the
Funds as follows:
<TABLE>
<CAPTION>
VBF VIBF VSTBF
--------- --------- --------
<S> <C> <C> <C>
Administration................................. $ 242,842 $ 138,804 $ 13,561
Investment Advisory............................ 485,684 277,608 22,601
--------- --------- --------
Total.......................................... $ 728,526 $ 416,412 $ 36,162
--------- --------- --------
Distributor Reimbursement...................... $ 44,100 $ 33,879 $ 14,837
========= ========= ========
</TABLE>
22
<PAGE> 25
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
E. Other -- Certain officers of the Trust are officers of Vista Fund
Distributors, Inc. 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 -- For the four month period ended April 30, 1997,
purchases and sales of investments (excluding short-term investments) were as
follows:
<TABLE>
<CAPTION>
VBF VIBF VSTBF
------------- ------------- ------------
<S> <C> <C> <C>
Purchases (excluding U.S. Government)... $ 133,215,738 $ 59,151,756 $ 8,242,734
Sales (excluding U.S. Government)....... 132,931,514 62,207,820 12,447,756
Purchases of U.S. Government............ 301,372,279 179,381,031 38,489,939
Sales of U.S. Government................ 369,593,092 128,194,540 32,107,083
</TABLE>
4. FEDERAL INCOME TAX MATTERS -- For Federal income tax purposes, the cost and
unrealized appreciation (depreciation) in value of the investment securities at
April 30, 1997 are as follows:
<TABLE>
<CAPTION>
VBF VIBF VSTBF
------------- ------------- ------------
<S> <C> <C> <C>
Aggregate cost..................... $ 480,033,764 $ 292,044,673 $ 27,242,313
============= ============= ===========
Gross unrealized appreciation...... $ 1,743,097 $ 366,956 $ 50,389
Gross unrealized depreciation...... (4,448,357) (1,946,914) (77,239)
------------- ------------- ------------
Net unrealized appreciation........ ($ 2,705,260) ($ 1,579,958) ($ 26,850)
============= ============= ===========
</TABLE>
5. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST -- Transactions in Shares of
Beneficial Interest were as follows:
<TABLE>
<CAPTION>
Vista Select Bond Fund
-------------------------
January 1, 1997*
Through April 30, 1997
-------------------------
Amount Shares
------------ ----------
<S> <C> <C>
Shares sold................................................. $ 47,228,342 1,181,856
Shares issued in exchange for Common Trust Fund Assets (see
Note 1)................................................... 527,001,100 13,065,240
Shares issued in reinvestment of distributions.............. 2,123,611 52,813
Shares redeemed............................................. (92,383,585) (2,312,653)
------------ ----------
Net increase (decrease) in Trust shares outstanding......... $483,969,468 11,987,256
============= ==========
</TABLE>
<TABLE>
<CAPTION>
Vista Select Intermediate
Bond Fund
-------------------------
January 1, 1997*
Through April 30, 1997
-------------------------
Amount Shares
------------ ----------
<S> <C> <C>
Shares sold................................................. $ 90,002,143 8,987,258
Shares issued in exchange for Common Trust Fund Assets (see
Note 1)................................................... 245,891,546 24,375,885
Shares issued in reinvestment of distributions.............. 1,572,739 156,492
Shares redeemed............................................. (41,552,532) (4,169,455)
------------ ----------
Net increase (decrease) in Trust shares outstanding......... $295,913,896 29,350,180
============= ==========
</TABLE>
23
<PAGE> 26
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Select Short-Term
Bond Fund
-------------------------
January 1, 1997*
Through April 30, 1997
-------------------------
Amount Shares
------------ ----------
<S> <C> <C>
Shares sold................................................. $ 1,187,563 108,203
Shares issued in exchange for Common Trust Fund Assets (see
Note 1)................................................... 27,203,362 2,562,643
Shares issued in reinvestment of distributions.............. 154,717 14,569
Shares redeemed............................................. (950,402) (89,826)
------------ ----------
Net increase (decrease) in Trust shares outstanding......... $ 27,595,240 2,595,589
============= ==========
</TABLE>
- ---------------
* Fund commenced operations.
6. RETIREMENT PLAN -- 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 period ended April 30, 1997, 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:
<TABLE>
<CAPTION>
Accrued
Pension Pension
Expenses Liability
-------- ---------
<S> <C> <C>
VBF.......................................................... $3,280 $34,308
VIBF......................................................... 1,564 16,349
VSTB......................................................... 164 1,734
</TABLE>
24
<PAGE> 27
VISTA MUTUAL FUNDS
SELECTED DATA AND RATIOS FOR A SHARE OF
BENEFICIAL INTEREST OUTSTANDING
For the period January 1, 1997* through April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Select Vista Select
Vista Select Intermediate Short-Term
Bond Bond Bond
Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period........................ $ 40.38 $ 10.09 $ 10.63
-------- -------- -------
Income from Investment Operations:
Net Investment Income.................................... 0.911 0.216 0.224
Net Gains or (Losses) in Securities (both realized and
unrealized)............................................ (0.600) (0.115) (0.054)
-------- -------- -------
Total from Investment Operations......................... 0.312 0.101 0.170
-------- -------- -------
Less Distributions:
Dividends from Net Investment Income..................... 0.882 0.212 0.220
-------- -------- -------
Net Asset Value, End of Period.............................. $ 39.81 $ 9.98 $ 10.58
======== ======== =======
Total Return................................................ 0.89% 1.05% 1.76%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted).................... $477,223 $292,922 $ 27,452
Ratios to Average Net Assets #
Ratio of Expenses.......................................... 0.03% 0.06% 0.11%
Ratio of Net Investment Income............................. 6.94% 6.57% 6.43%
Ratio of Expenses Without Waivers and Assumption of
Expenses................................................. 0.48% 0.51% 0.51%
Ratio of Net Investment Income Without Waivers and
Assumption of Expenses................................... 6.49% 6.12% 6.03%
Portfolio Turnover Rate..................................... 104% 80% 169%
</TABLE>
- ---------------
* Commencement of operations.
# Short periods have been annualized.
See notes to financial statements.
25
<PAGE> 28
VISTA SERVICE CENTER
P.O. BOX 419392
KANSAS CITY, MO 64179
Investment Adviser, Administrator
and Custodian
The Chase Manhattan Bank
Distributor
Vista Fund Distributors, Inc.
Transfer Agent
DST Systems, Inc.
Legal Counsel
Simpson Thacher & Bartlett
Independent Accountants
Price Waterhouse LLP
Vista Mutual Funds are distributed by Vista Fund Distributors, Inc., which is
unaffiliated with The Chase Manhattan Bank. Chase and its respective affiliates
receive compensation from the 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 accompanies by a prospectus.
The financial information in this report has been taken from the books and
records of the Funds without examination by independent accountants, who express
no opinion thereto.
VSFI-3-697
<PAGE> 29
[VISTA LOGO]
- ------------------------------------------------------------
- - VISTA SELECT BALANCED FUND
- - VISTA SELECT EQUITY INCOME FUND
- - VISTA SELECT LARGE CAP EQUITY FUND
- - VISTA SELECT LARGE CAP GROWTH FUND
- - VISTA SELECT NEW GROWTH OPPORTUNITIES FUND
- - VISTA SELECT SMALL CAP VALUE FUND
- - VISTA SELECT INTERNATIONAL EQUITY FUND
- ------------------------------------------------------------
- --------------------------------------------------------------------------------
SEMIANNUAL REPORT
APRIL 30, 1997
(UNAUDITED)
<PAGE> 30
CONTENTS
Chairman's Letter 1
Fund Commentaries 2
Portfolio of Investments 16
Notes to Financial Statements 61
Per Share Data 68
<PAGE> 31
Vista is in the process of redesigning your Shareholder Reports to include even
more information about your fund, its current investment strategy and how it is
performing.
Watch for the completed redesign when you receive your next Annual Report.
May 23, 1997
Dear Shareholder:
Welcome to The Vista Family of Mutual Funds, one of the country's
fastest-growing mutual fund providers.
As you are aware, your common trust fund investment was converted into a mutual
fund registered as Vista Select Mutual Funds. This tax-free exchange of assets
was made possible by the Small Business Job Protection Act, signed into law in
August 1996, and was communicated to you in a letter dated January 27, 1997.
This conversion provides numerous advantages to you, including greater
liquidity. Shares of the Vista Select Mutual Funds may be purchased or sold on
any business day instead of only once a month. The conversion also provides you
with the ability to monitor your Vista Select Mutual Fund performance through
semiannual and annual reports as well as daily price quotations available
nationally in electronic and print media. In addition, you gain the portability
of mutual fund shares when a trust account is moved or distributed.
We are pleased to present this Semi-Annual Report for the following Vista Select
Equity Funds for the six months ending April 30, 1997:
- Equity Income Fund
- New Growth Opportunities Fund
- Small Cap Value Fund
- Large Cap Equity Fund
- Large Cap Growth Fund
- Balanced Fund
- International Equity Fund
Inside, you'll find information on the performance of each fund along with a
market overview and portfolio commentary. Please note that, although the Vista
Select Equity Funds have only a four-month history as of April 30, 1997, the
commentary for this semiannual report addresses the entire six-month period.
POSITIVE ECONOMIC FACTORS DRIVE U.S. STOCKS HIGHER
The environment for equities during the period was quite positive, as a
combination of buoyant economic growth, strong corporate earnings and low
inflation drove stock prices higher. The largest U.S. stocks continued to lead
the way, with the S&P 500 Index of large company stocks posting a 14.71% gain
during the period. These outstanding returns, however, were not equaled further
down the capitalization curve as the S&P Mid Cap 400 Index had a 6.88% gain and
the Russell 2000 Index of smaller company stocks returned just 1.61%. Overseas
equity markets diverged on hemispheric lines as markets in Europe and Latin
America posted robust gains, while those in Japan and most of Southeast Asia
turned in negative performance.
BOND MARKETS ONCE AGAIN EXPERIENCE VOLATILITY
U.S. fixed income markets remained sensitive to fears, as yet unrealized, that
the high levels of economic growth would prove inflationary. Although interest
rates were falling in response to moderating economic growth as the period
began, the trend reversed in early 1997 as stronger economic growth reports were
issued. Rates peaked around the time the Fed raised interest rates on March
25th.
Regardless of which direction the markets take over the short term, we share
your enthusiasm for investing. Our portfolio management team has worked hard to
provide you with investments to help you reach your financial goals, and will
continue to do so in the future. If you have any questions, please call your
Chase Trust Account Officer whose name appears on the account statement sent to
you.
Sincerely,
/s/ FERGUS REID
Fergus Reid
Chairman
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.
<PAGE> 32
VISTA SELECT BALANCED FUND
Vista Select Balanced Fund, which seeks to provide capital growth plus current
income by investing in a portfolio of high-quality stocks, bonds and convertible
securities, had a total return of 5.99% for the six months ended
April 30, 1997.
Two factors caused the Fund's income to decline in the first quarter from
previous levels. A significant portion of the decline was caused by a
recalculation of amortization relating to convertible bonds. Shareholders,
subsequently, received a special dividend payment representing the additional
income attributable to this calculation.
The second factor involved a strategic reallocation of the Fund as part of
Vista's disciplined investment process. The investment management team shifted
assets to certain equities which, while offering lower current yields, are
expected to provide growth in dividends. To meet the current income objectives
of the Fund, the managers increased the allocation to fixed-income.
SLIGHT ALLOCATION SHIFTS SEEK TO INCREASE RETURNS
The Fund's management team made tactical shifts throughout the reporting period
to capitalize on the changing relative values of stocks, bonds and cash.
On the equity side, the Fund's performance was supported by effective sector
allocations. In late 1996, the Fund benefited from its overweight positions in
financial and technology stocks, but the management team subsequently began
cutting the financial exposure due to less-compelling valuations. The technology
overweight was maintained, however, with specific emphasis on communications,
networking and software companies.
As the reporting period progressed, the management team correctly anticipated
that economic growth would accelerate and, therefore, began favoring companies
in sectors such as capital goods which tend to do well in a growing economy.
Exposure to the energy sector was also increased based on more attractive
valuations.
MORTGAGE-BACKED AND CORPORATE SECURITIES EMPHASIZED
On the fixed-income side, the Fund began the reporting period with a slight
overweighting of mortgage-backed securities as well as selected corporate
securities. This emphasis helped the Fund perform well as mortgages and
corporates were the top-performing sectors in early 1997 and, subsequently, as
rates began an uptrend in February. At that point, the management team reduced
duration to neutral and adopted a barbell strategy that sought to take advantage
of stronger relative values at the short and long ends of the yield curve. As
the reporting period ended, the Fund took profits on some of its mortgage-backed
securities but maintained a relatively-neutral sector allocation.
Moving forward, the management team expects economic growth in the U.S. to
moderate and, therefore, anticipates significant opportunities in both the stock
and bond markets.
2
<PAGE> 33
- --------------------------------------------------------------------------------
VISTA SELECT BALANCED FUND
AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/97
<TABLE>
<S> <C>
One Year........................................................ 11.55%
Five Years...................................................... 9.80%
Ten Years....................................................... 9.67%
</TABLE>
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENTS IN THE FUND AND KEY BENCHMARKS
<TABLE>
<CAPTION>
MEASUREMENT PERIOD SELECT LEHMAN LIPPER
(FISCAL YEAR BALANCED S&P 500 AGGREGATE BALANCED
COVERED) FUND INDEX BOND INDEX FUNDS AVG.
<S> <C> <C> <C> <C>
04/30/87 10000.00 10000.00 10000.00 10000.00
05/31/87 9993.86 10086.00 9961.00 10002.00
06/30/87 10230.27 10595.34 10098.46 10279.06
07/31/87 10327.66 11132.53 10090.38 10554.53
08/31/87 10436.95 11547.77 10035.89 10773.01
09/30/87 10243.37 11294.87 9822.13 10585.56
10/31/87 9748.58 8863.09 10171.80 9293.07
11/30/87 9458.64 8132.77 10253.17 8975.24
12/31/87 9720.21 8751.67 10392.62 9408.75
01/31/88 10126.65 9119.24 10758.44 9732.41
02/29/88 10287.47 9542.38 10886.46 10066.23
03/31/88 10117.09 9248.47 10784.13 9918.26
04/30/88 10093.59 9351.13 10725.89 9961.90
05/31/88 10094.44 9430.61 10654.03 9942.97
06/30/88 10377.29 9863.48 10910.79 10300.92
07/31/88 10328.46 9826.00 10854.06 10236.02
08/31/88 10292.94 9492.90 10882.28 10093.74
09/30/88 10575.00 9897.29 11128.22 10375.35
10/31/88 10837.36 10172.44 11337.43 10550.70
11/30/88 10693.69 10026.97 11200.24 10393.49
12/31/88 10746.59 10201.44 11212.56 10559.79
01/31/89 11053.56 10948.19 11374.03 10977.96
02/28/89 10925.98 10675.58 11292.13 10848.42
03/31/89 11014.63 10924.32 11340.69 10997.04
04/30/89 11332.96 11491.29 11577.71 11357.74
05/31/89 11681.05 11954.39 11882.20 11709.83
06/30/89 11877.67 11887.44 12243.42 11775.41
07/31/89 12344.50 12959.69 12504.21 12370.07
08/31/89 12310.85 13212.41 12319.14 12466.55
09/30/89 12330.06 13158.24 12381.97 12449.10
10/31/89 12350.01 12852.96 12686.57 12307.18
11/30/89 12488.81 13113.88 12807.09 12464.71
12/31/89 12618.31 13428.61 12841.67 12581.88
01/31/90 12213.31 12527.55 12688.85 12045.89
02/28/90 12313.47 12689.16 12729.46 12148.28
03/31/90 12389.71 13025.42 12738.37 12298.92
04/30/90 12191.32 12701.09 12621.18 12072.62
05/31/90 12842.07 13936.90 12994.76 12778.87
06/30/90 12907.23 13843.53 13202.68 12840.21
07/31/90 12950.57 13799.23 13384.88 12828.65
08/31/90 12423.59 12553.16 13205.52 12112.81
09/30/90 12221.10 11943.07 13315.12 11783.34
10/31/90 12328.10 11892.91 13484.23 11755.06
11/30/90 12798.45 12660.01 13774.14 12293.44
12/31/90 13060.85 13011.95 13989.01 12600.78
01/31/91 13336.68 13576.67 14162.48 13034.25
02/28/91 13850.02 14546.05 14282.86 13620.79
03/31/91 14089.77 14898.06 14378.55 13876.86
04/30/91 14127.42 14933.82 14536.72 13936.53
05/31/91 14507.42 15575.97 14621.03 14369.96
06/30/91 14138.70 14862.59 14613.72 13935.98
07/31/91 14478.45 15555.19 14816.85 14400.05
08/31/91 14807.23 15922.29 15136.90 14762.93
09/30/91 14854.73 15656.39 15444.17 14798.36
10/31/91 15005.68 15866.18 15615.60 14995.18
11/30/91 14709.85 15228.36 15759.27 14666.79
12/31/91 15746.18 16967.44 16227.32 15807.86
01/31/92 15414.35 16651.85 16006.63 15684.56
02/29/92 15627.25 16866.66 16110.67 15861.80
03/31/92 15504.92 16539.44 16020.45 15625.46
04/30/92 15775.30 17024.05 16135.80 15784.84
05/31/92 15983.92 17107.47 16440.76 15955.31
06/30/92 15984.61 16852.57 16667.65 15814.91
07/31/92 16479.71 17540.15 17007.67 16297.26
08/31/92 16452.92 17182.33 17179.44 16150.59
09/30/92 16687.83 17385.08 17383.88 16363.77
10/31/92 16560.67 17444.19 17152.67 16371.96
11/30/92 16788.24 18037.29 17159.54 16756.70
12/31/92 16963.92 18259.15 17428.94 17009.72
01/31/93 17096.39 18412.53 17763.58 17239.35
2/28/93 17333.08 18662.94 18074.44 17380.72
3/31/93 17573.18 19056.73 18150.35 17712.69
4/30/93 17470.34 18595.56 18277.40 17519.62
5/31/93 17614.52 19092.06 18301.16 17792.93
6/30/93 17734.09 19147.42 18632.41 17997.54
7/31/93 17784.89 19070.83 18738.62 18035.34
8/31/93 18327.77 19793.62 19066.55 18570.99
9/30/93 18276.92 19641.21 19118.03 18621.13
10/31/93 18345.44 20047.78 19188.76 18809.20
11/30/93 18098.57 19857.33 19025.66 18547.76
12/31/93 18152.63 20097.60 19128.40 18866.78
2/31/94 18584.04 20780.92 19386.63 19342.22
2/28/94 18068.02 20217.76 19049.30 18961.18
3/31/94 17363.11 19338.28 18578.78 18261.51
4/30/94 17351.79 19585.81 18430.15 18296.21
5/31/94 17474.97 19905.06 18428.31 18378.54
6/30/94 17172.55 19417.39 18387.77 18047.73
7/31/94 17577.49 20054.28 18753.69 18450.19
8/31/94 17880.02 20874.50 18776.19 18911.45
9/30/94 17530.82 20365.16 18500.18 18561.58
10/31/94 17616.15 20821.34 18483.53 18654.39
11/30/94 17387.89 20063.44 18442.87 18202.96
12/31/94 17535.46 20360.38 18570.12 18372.24
1/31/95 18010.20 20887.72 18937.81 18612.92
2/28/95 18578.07 21700.25 19388.53 19175.03
3/31/95 18914.55 22340.41 19506.80 19514.43
4/30/95 19267.58 22997.22 19779.89 19869.59
5/31/95 20010.52 23914.80 20545.38 20531.25
6/30/95 20261.62 24469.63 20695.36 20929.55
7/31/95 20468.92 25279.57 20649.83 21413.03
8/31/95 20559.63 25342.77 20899.69 21599.32
9/30/95 21161.69 26412.24 21102.42 22074.51
10/31/95 21264.38 26317.15 21376.75 22028.15
11/30/95 21899.34 27469.84 21697.40 22702.21
12/31/95 22440.74 28000.01 22001.16 23010.96
1/31/96 22865.29 28952.01 22146.37 23429.76
2/29/96 22579.96 29221.27 21761.03 23514.11
3/31/96 22558.54 29501.79 21608.70 23603.46
4/30/96 22580.58 29935.47 21487.69 23848.94
5/31/96 22752.37 30704.81 21444.71 24137.51
6/30/96 22953.45 30821.49 21732.07 24166.47
7/31/96 22428.97 29459.18 21790.75 23518.81
8/31/96 22483.40 30080.76 21753.71 23935.10
9/30/96 23155.02 31771.30 22132.22 24813.51
10/31/96 23764.60 32648.19 22623.56 25282.49
11/30/96 24923.06 35113.13 23010.42 26407.56
12/31/96 24508.32 34417.89 22796.42 26138.20
1/31/97 24978.63 36565.57 22867.09 26846.55
2/28/97 24965.79 36854.43 22924.26 26878.76
3/31/97 24357.95 35343.40 22669.80 26139.60
4/30/97 25187.65 37449.87 23009.85 26853.21
</TABLE>
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 shares of
Vista Select Balanced Fund, the Lipper Balanced Funds Average, the Lehman
Aggregate Bond Index and the Standard & Poor's 500 Index for the ten years ended
4/30/97. The performance of the Fund assumes reinvestment of all dividends and
capital gains.
The Lipper Balanced Funds Average represents the average performance of a
universe of 319 actively managed balanced mutual funds. Lipper is an independent
mutual fund performance monitor whose results are based on total return and do
not reflect a sales charge.
The Lehman Aggregate Bond Index is composed of the Lehman Government/Corporate
Index and the Mortgage-Backed Securities Index and includes U.S. Treasury and
agency securities and corporate bond and mortgage-backed securities.
The Standard & Poor's 500 Index is a broad-based index that is generally
considered representative of the U.S. stock market. The indexes are unmanaged
and assume the reinvestment of dividends. An individual cannot invest in the
index.
The quoted performance of Vista Select Balanced Fund includes performance of a
predecessor account for the period dating back to 4/30/87 and prior to the
Fund's commencement of operations on 12/31/96. Returns are adjusted to reflect
historical expenses at the levels indicated (absent reimbursements) in the
Expense Summary for the Fund as disclosed in the Prospectus. The account was not
registered with the Securities and Exchange Commission and, therefore, was not
subject to the investment restrictions imposed by law on registered mutual
funds. If the account had been registered, the account's performance may have
been adversely affected. Also, the Fund is currently waiving certain fees. This
voluntary waiver may be modified or terminated at any time, which would reduce
returns.
3
<PAGE> 34
VISTA SELECT EQUITY INCOME FUND
Vista Select Equity Income Fund, which seeks to provide current income plus
capital growth by investing primarily in income-producing equity securities,
delivered a total return of 12.51% for the six months ended April 30, 1997.
REITS HELPED FUND DELIVER INCOME & CAPITAL APPRECIATION
The Fund was successful in achieving its dual objective through the use of a
barbell strategy. With this strategy, the management team invests in two types
of securities: those with high dividend yields as well as those which the
management team believes offer the potential for capital appreciation.
The Fund began the reporting period with a continued overweight position in Real
Estate Investment Trusts (REITs), which helped the Fund gain both high income
and capital appreciation for most of 1996. By the end of the year, however, the
management team had begun cutting REIT exposure as many of these holdings had
reached Vista's 1997 price targets.
FUND RE-FOCUSED FOR FASTER GROWTH IN EARLY 1997
Early in 1997, correctly anticipating accelerating economic growth, the
management team reduced exposure to interest rate-sensitive sectors such as
financials and REITs to those which tend to perform better in a growing economy.
Additionally, on a valuation basis, the Fund began rebuilding its exposure to
the energy sector. While these energy holdings have lagged the market, their
valuations remain attractive given individual company considerations.
The management team expects that volatility will continue to define the stock
market. In such an environment, the Fund's barbell strategy is particularly
useful for overall total return because high levels of income can help offset
falling prices. At the same time, Vista's disciplined stock management system
identifies attractively-valued companies which provide the potential for capital
appreciation.
4
<PAGE> 35
- --------------------------------------------------------------------------------
VISTA SELECT EQUITY INCOME FUND
AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/97
<TABLE>
<S> <C>
One Year........................................................ 21.60%
Five Years...................................................... 15.77%
Ten Years....................................................... 13.01%
</TABLE>
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENTS IN THE FUND AND KEY BENCHMARKS
<TABLE>
<CAPTION>
SELECT LIPPER
MEASUREMENT PERIOD EQUITY S&P 500 EQUITY INC.
(FISCAL YEAR COVERED) INCOME FUND INDEX FUNDS AVG.
<S> <C> <C> <C>
04/30/87 10000.00 10000.00 10000.00
05/31/87 10073.07 10086.00 9980.00
06/30/87 10528.98 10595.34 10314.33
07/31/87 11228.09 11132.53 10572.19
08/31/87 11412.15 11547.77 10831.21
09/30/87 11335.67 11294.87 10634.08
10/31/87 8473.01 8863.09 8918.80
11/30/87 7998.42 8132.77 8516.56
12/31/87 8645.75 8751.67 8865.74
01/31/88 9027.27 9119.24 9351.59
02/29/88 9788.75 9542.38 9694.79
03/31/88 9851.78 9248.47 9530.95
04/30/88 10053.13 9351.13 9603.38
05/31/88 9999.65 9430.61 9687.89
06/30/88 10554.42 9863.48 10059.91
07/31/88 10452.83 9826.00 10068.96
08/31/88 10161.86 9492.90 9896.78
09/30/88 10497.01 9897.29 10205.56
10/31/88 10696.13 10172.44 10400.49
11/30/88 10458.59 10026.97 10320.40
12/31/88 10771.91 10201.44 10447.34
01/31/89 11379.91 10948.19 10978.07
02/28/89 11316.45 10675.58 10867.19
03/31/89 11503.05 10924.32 11084.54
04/30/89 12073.67 11491.29 11493.55
05/31/89 12538.40 11954.39 11872.84
06/30/89 12395.45 11887.44 11894.21
07/31/89 13088.50 12959.69 12594.78
08/31/89 13470.11 13212.41 12795.04
09/30/89 13230.06 13158.24 12788.64
10/31/89 12581.36 12852.96 12458.69
11/30/89 12763.69 13113.88 12608.20
12/31/89 12893.43 13428.61 12808.67
01/31/90 12131.82 12527.55 12127.25
02/28/90 12432.56 12689.16 12252.16
03/31/90 12694.96 13025.42 12389.38
04/30/90 12204.48 12701.09 12030.09
05/31/90 13230.54 13936.90 12772.35
06/30/90 13310.22 13843.53 12698.27
07/31/90 13313.35 13799.23 12582.71
08/31/90 12150.35 12553.16 11659.14
09/30/90 11540.38 11943.07 11153.14
10/31/90 11428.23 11892.91 11009.26
11/30/90 12055.98 12660.01 11592.75
12/31/90 12370.54 13011.95 11825.77
01/31/91 13101.62 13576.67 12240.85
02/28/91 13934.88 14546.05 12998.56
03/31/91 14253.80 14898.06 13267.63
04/30/91 14305.17 14933.82 13352.54
05/31/91 14905.60 15575.97 13859.94
06/30/91 14236.72 14862.59 13383.16
07/31/91 14835.26 15555.19 13911.79
08/31/91 15169.21 15922.29 14237.33
09/30/91 14952.47 15656.39 14248.72
10/31/91 15186.16 15866.18 14453.90
11/30/91 14444.04 15228.36 13963.91
12/31/91 15771.68 16967.44 15069.85
01/31/92 16056.12 16651.85 15041.22
02/29/92 16497.03 16866.66 15278.87
03/31/92 16222.83 16539.44 15090.94
04/30/92 16344.95 17024.05 15484.81
05/31/92 16425.00 17107.47 15600.95
06/30/92 15876.76 16852.57 15451.18
07/31/92 16551.60 17540.15 15979.61
08/31/92 16099.32 17182.33 15723.94
09/30/92 16416.82 17385.08 15870.17
10/31/92 16767.78 17444.19 15868.58
11/30/92 17697.53 18037.29 16295.45
12/31/92 17995.54 18259.15 16603.43
01/31/93 18445.40 18412.53 16840.86
02/28/93 18566.37 18662.94 17172.63
03/31/93 19344.24 19056.73 17682.65
04/30/93 18982.18 18595.56 17519.97
05/31/93 19729.96 19092.06 17765.25
06/30/93 19857.81 19147.42 17930.47
07/31/93 19637.74 19070.83 18059.57
08/31/93 20361.70 19793.62 18715.13
09/30/93 20622.86 19641.21 18746.95
10/31/93 20649.24 20047.78 18979.41
11/30/93 20046.58 19857.33 18666.25
12/31/93 20390.14 20097.60 18979.84
01/31/94 20981.25 20780.92 19526.46
02/28/94 20551.14 20217.76 19048.06
03/31/94 19576.94 19338.28 18274.71
04/30/94 19746.70 19585.81 18466.60
05/31/94 19953.18 19905.06 18638.34
06/30/94 19521.45 19417.39 18332.67
07/31/94 20023.89 20054.28 18811.15
08/31/94 20719.85 20874.50 19399.94
09/30/94 20221.05 20365.16 19060.44
10/31/94 20393.79 20821.34 19170.99
11/30/94 19507.18 20063.44 18448.24
12/31/94 19656.93 20360.38 18592.14
01/31/95 19725.25 20887.72 18952.83
02/28/95 20710.49 21700.25 19555.53
03/31/95 21365.69 22340.41 20009.22
04/30/95 21916.32 22997.22 20453.42
05/31/95 22776.65 23914.80 21064.98
06/30/95 23461.78 24469.63 21330.40
07/31/95 24543.36 25279.57 21908.45
08/31/95 24721.86 25342.77 22145.06
09/30/95 25115.56 26412.24 22884.71
10/31/95 24640.76 26317.15 22651.28
11/30/95 25744.16 27469.84 23613.96
12/31/95 26067.01 28000.01 24204.31
01/31/96 26956.97 28952.01 24775.53
02/29/96 27331.59 29221.27 24986.12
03/31/96 27860.20 29501.79 25328.43
04/30/96 27968.78 29935.47 25624.78
05/31/96 28331.50 30704.81 26039.90
06/30/96 28487.93 30821.49 26086.77
07/31/96 27585.95 29459.18 25158.08
08/31/96 28284.39 30080.76 25802.13
09/30/96 29386.75 31771.30 26780.03
10/31/96 30227.66 32648.19 27385.26
11/30/96 32123.30 35113.13 28929.79
12/31/96 31927.31 34417.89 28796.71
01/31/97 33655.69 36565.57 29847.79
02/28/97 34054.27 36854.43 30220.89
03/31/97 32919.13 35343.40 29290.08
04/30/97 34010.13 37449.87 30139.50
</TABLE>
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 shares of
Vista Select Equity Income Fund, the Standard & Poor's 500 Index and the Lipper
Equity Income Funds Average for the ten years ended 4/30/97. The performance of
the Fund assumes reinvestment of all dividends and capital gains.
The Lipper Equity Income Funds Average represents the average performance of a
universe of 195 actively managed mutual funds that invest in income-producing
equity securities. Lipper is an independent mutual fund performance monitor
whose results are based on total return and do not reflect a sales charge.
The Standard & Poor's 500 Stock Index is a broad-based index that is generally
considered representative of the U.S. stock market. The index is unmanaged and
assumes the reinvestment of dividends. An individual cannot invest in the index.
The quoted performance of Vista Select Equity Income Fund includes performance
of a predecessor account for the period dating back to 4/30/87 and prior to the
Fund's commencement of operations on 12/31/96. Returns are adjusted to reflect
historical expenses at the levels indicated (absent reimbursements) in the
Expense Summary for the Fund as disclosed in the Prospectus. The account was not
registered with the Securities and Exchange Commission and, therefore, was not
subject to the investment restrictions imposed by law on registered mutual
funds. If the account had been registered, the account's performance may have
been adversely affected. Also, the Fund is currently waiving certain fees. This
voluntary waiver may be modified or terminated at any time, which would reduce
returns.
5
<PAGE> 36
VISTA SELECT LARGE CAP EQUITY FUND
Vista Select Large Cap Equity Fund, which seeks to provide capital growth
through a portfolio of large cap common stocks, provided shareholders with a
total return of 12.0% for the six months ended April 30, 1997.
MARKET ENVIRONMENT FAVORS LARGE CAP COMPANIES
The Fund participated strongly in a market environment that favored the largest
companies. In late 1996, the Fund benefited from its overweight positions in
financial and technology stocks, but the management team subsequently began
cutting the financial exposure due to less-compelling valuations. The technology
overweight was also reduced in favor of a more neutral sector stance in which
stock picking was emphasized.
As the reporting period progressed, the management team correctly anticipated
that economic growth would accelerate and, therefore, began favoring companies
which it believed would benefit from more robust growth. These companies can
generally be found in "cyclical" sectors such as capital goods. Exposure to the
energy sector was also increased based on more attractive valuations.
MANAGEMENT TEAM MAINTAINS FOCUS ON VALUATION
While the Fund has clearly benefited from the market's large cap bias, the
management team has continued to apply Vista's disciplined five-step stock
management system to help protect shareholders against overpaying for individual
holdings. By maintaining a widely-diversified approach and focusing on
individual stock selection, the management team looks to use periods of
volatility to buy high-quality holdings at what it believes are attractive
prices. Moving forward, the management team expects economic growth to moderate
later in the year and, therefore, is emphasizing investments in companies with a
proven ability to maintain earnings growth.
6
<PAGE> 37
- --------------------------------------------------------------------------------
VISTA SELECT LARGE CAP EQUITY FUND
AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/97
<TABLE>
<S> <C>
One Year........................................................ 19.03%
Five Years...................................................... 13.80%
Ten Years....................................................... 11.88%
</TABLE>
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENTS IN THE FUND AND KEY BENCHMARKS
<TABLE>
<CAPTION>
SELECT LARGE LIPPER
MEASUREMENT PERIOD CAP EQUITY S&P 500 GROWTH FUNDS
(FISCAL YEAR COVERED) FUND INDEX AVERAGE
<S> <C> <C> <C>
04/30/87 10000.00 10000.00 10000.00
05/31/87 10097.01 10086.00 10063.00
06/30/87 10574.51 10595.34 10403.13
07/31/87 11062.39 11132.53 10859.83
08/31/87 11530.82 11547.77 11213.86
09/30/87 11363.05 11294.87 11035.56
10/31/87 8960.43 8863.09 8516.14
11/30/87 8156.50 8132.77 7956.63
12/31/87 8741.69 8751.67 8671.93
01/31/88 9013.72 9119.24 8875.72
02/29/88 9375.77 9542.38 9401.16
03/31/88 9061.95 9248.47 9341.00
04/30/88 9143.50 9351.13 9425.06
05/31/88 9152.17 9430.61 9358.15
06/30/88 9529.17 9863.48 9879.40
07/31/88 9468.57 9826.00 9740.10
08/31/88 9153.83 9492.90 9445.94
09/30/88 9577.21 9897.29 9815.28
10/31/88 9813.98 10172.44 9897.73
11/30/88 9694.53 10026.97 9700.76
12/31/88 9830.93 10201.44 9954.92
01/31/89 10525.98 10948.19 10579.10
02/28/89 10234.79 10675.58 10445.80
03/31/89 10480.78 10924.32 10687.10
04/30/89 11042.64 11491.29 11227.87
05/31/89 11461.84 11954.39 11703.93
06/30/89 11331.78 11887.44 11561.14
07/31/89 12370.62 12959.69 12402.79
08/31/89 12545.58 13212.41 12715.34
09/30/89 12495.08 13158.24 12743.32
10/31/89 12225.48 12852.96 12331.71
11/30/89 12519.67 13113.88 12511.75
12/31/89 12846.68 13428.61 12644.37
01/31/90 11970.04 12527.55 11816.17
02/28/90 12152.40 12689.16 12019.41
03/31/90 12396.54 13025.42 12376.38
04/30/90 12112.04 12701.09 12096.68
05/31/90 13299.82 13936.90 13241.02
06/30/90 13296.65 13843.53 13272.80
07/31/90 13261.73 13799.23 13043.18
08/31/90 12174.11 12553.16 11826.25
09/30/90 11673.14 11943.07 11134.42
10/31/90 11647.32 11892.91 10918.41
11/30/90 12327.45 12660.01 11657.58
12/31/90 12698.53 13011.95 12057.44
01/31/91 13152.23 13576.67 12836.35
02/28/91 14021.03 14546.05 13772.12
03/31/91 14326.41 14898.06 14225.22
04/30/91 14313.92 14933.82 14220.96
05/31/91 14902.13 15575.97 14836.72
06/30/91 14152.31 14862.59 14081.53
07/31/91 14866.22 15555.19 14820.81
08/31/91 15348.75 15922.29 15286.19
09/30/91 15114.38 15656.39 15140.97
10/31/91 15323.24 15866.18 15460.44
11/30/91 14714.08 15228.36 14849.76
12/31/91 16584.57 16967.44 16518.87
01/31/92 16183.13 16651.85 16611.37
02/29/92 16257.46 16866.66 16872.17
03/31/92 15856.28 16539.44 16369.38
04/30/92 16111.69 17024.05 16295.72
05/31/92 16242.96 17107.47 16414.68
06/30/92 15905.55 16852.57 15933.73
07/31/92 16599.06 17540.15 16505.75
08/31/92 16298.36 17182.33 16150.88
09/30/92 16498.71 17385.08 16425.44
10/31/92 16632.47 17444.19 16768.73
11/30/92 17185.05 18037.29 17618.91
12/31/92 17346.71 18259.15 17937.81
01/31/93 17316.47 18412.53 18169.21
02/28/93 17364.45 18662.94 17898.49
03/31/93 17764.76 19056.73 18412.17
04/30/93 17299.94 18595.56 17843.24
05/31/93 17690.78 19092.06 18523.06
06/30/93 17737.64 19147.42 18565.67
07/31/93 17625.20 19070.83 18504.40
08/31/93 18222.07 19793.62 19300.09
09/30/93 18111.20 19641.21 19487.30
10/31/93 18457.11 20047.78 19754.28
11/30/93 18344.74 19857.33 19388.82
12/31/93 18713.90 20097.60 19937.53
01/31/94 19421.73 20780.92 20561.57
02/28/94 18861.64 20217.76 20246.98
03/31/94 18038.45 19338.28 19293.35
04/30/94 18224.62 19585.81 19362.80
05/31/94 18456.04 19905.06 19440.25
06/30/94 18060.42 19417.39 18777.34
07/31/94 18491.81 20054.28 19261.80
08/31/94 19204.28 20874.50 20180.58
09/30/94 18653.58 20365.16 19819.35
10/31/94 19006.88 20821.34 20140.42
11/30/94 18342.82 20063.44 19385.16
12/31/94 18444.61 20360.38 19563.50
01/31/95 18647.51 20887.72 19688.71
02/28/95 19445.74 21700.25 20432.94
03/31/95 19950.67 22340.41 21003.02
04/30/95 20269.63 22997.22 21441.98
05/31/95 21007.02 23914.80 22074.52
06/30/95 21486.61 24469.63 23034.76
07/31/95 22389.26 25279.57 24151.95
08/31/95 22535.74 25342.77 24345.17
09/30/95 22983.71 26412.24 25034.13
10/31/95 22603.49 26317.15 24651.11
11/30/95 23559.34 27469.84 25531.16
12/31/95 23809.45 28000.01 25620.51
01/31/96 24553.33 28952.01 26158.55
02/29/96 25006.72 29221.27 26775.89
03/31/96 25567.36 29501.79 27003.48
04/30/96 25848.87 29935.47 27902.70
05/31/96 26292.34 30704.81 28644.91
06/30/96 26189.94 30821.49 28235.29
07/31/96 25046.58 29459.18 26566.58
08/31/96 25756.22 30080.76 27493.76
09/30/96 27027.09 31771.30 29063.65
10/31/96 27471.72 32648.19 29278.72
11/30/96 29361.84 35113.13 31032.52
12/31/96 28541.57 34417.89 30585.65
01/31/97 30478.21 36565.57 32148.57
02/28/97 30542.92 36854.43 31682.42
03/31/97 29217.56 35343.40 30187.01
04/30/97 30767.30 37449.87 31309.97
</TABLE>
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 shares of
Vista Select Large Cap Equity Fund, the Standard & Poor's Index and the Lipper
Growth Funds Average for the ten years ended 4/30/97. The performance of the
Fund assumes reinvestment of all dividends and capital gains.
The Lipper Growth Funds Average represents the average performance of a universe
of 851 actively managed growth mutual funds. Lipper is an independent mutual
fund performance monitor whose results are based on total return and do not
reflect a sales charge.
The Standard & Poor's 500 Index is a broad-based index that is generally
considered representative of the U.S. stock market. The index is unmanaged and
assumes the reinvestment of dividends. An individual cannot invest in the index.
The quoted performance of Vista Select Large Cap Equity Fund includes
performance of a predecessor account for the period dating back to 4/30/87 and
prior to the Fund's commencement of operations on 12/31/97. Returns are adjusted
to reflect historical expenses at the levels indicated (absent reimbursements)
in the Expense Summary for the Fund as disclosed in the Prospectus. The account
was not registered with the Securities and Exchange Commission and, therefore,
was not subject to the investment restrictions imposed by law on registered
mutual funds. If the account had been registered, the account's performance may
have been adversely affected. Also, the Fund is currently waiving certain fees.
This voluntary waiver may be modified or terminated at any time, which would
reduce returns.
7
<PAGE> 38
VISTA SELECT LARGE CAP GROWTH FUND
Vista Select Large Cap Growth Fund, which seeks to provide capital growth
through a portfolio of large cap common stocks, provided shareholders with a
total return of 9.61% for the six months ended April 30, 1997.
MARKET ENVIRONMENT FAVORS LARGE CAP COMPANIES
The Fund was able to participate in a market environment that favored the
largest companies. In late 1996, the Fund benefited from its overweight
positions in financial and technology stocks, but the financial exposure did
negatively impact performance in early 1997, leading the management team to cut
back on these holdings.
As the reporting period progressed, the management team correctly anticipated
that economic growth would accelerate and, therefore, began favoring companies
which it believed would benefit from stronger economic activity. These companies
can generally be found in "cyclical" sectors such as capital goods. Exposure to
the energy sector was also increased based on more attractive valuations.
During the spring market volatility, the management team took advantage of the
sell-off in the technology sector to buy what it believed were strong companies
at newly-attractive prices.
MANAGEMENT TEAM MAINTAINS FOCUS ON VALUATION
While the Fund has benefited from the market's large cap bias, the management
team has continued to apply Vista's disciplined five-step stock management
system to help protect shareholders against overpaying for individual holdings.
Moving forward, the management team expects economic growth to moderate later in
the year and, therefore, is emphasizing investments in companies with a proven
ability to maintain earnings growth.
8
<PAGE> 39
- --------------------------------------------------------------------------------
VISTA SELECT LARGE CAP GROWTH FUND
AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/97
<TABLE>
<S> <C>
One Year........................................................ 13.73%
Five Years...................................................... 13.77%
Ten Years....................................................... 11.74%
</TABLE>
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENTS IN THE FUND AND KEY BENCHMARKS
<TABLE>
<CAPTION>
SELECT LARGE LIPPER
MEASUREMENT PERIOD CAP GROWTH S&P 500 GROWTH FUNDS
(FISCAL YEAR COVERED) FUND INDEX AVG.
<S> <C> <C> <C>
04/30/87 10000.00 10000.00 10000.00
05/31/87 10105.48 10086.00 10063.00
06/30/87 10397.86 10595.34 10403.13
07/31/87 10744.96 11132.53 10859.83
08/31/87 11100.84 11547.77 11213.86
09/30/87 10967.23 11294.87 11035.56
10/31/87 9171.41 8863.09 8516.14
11/30/87 8582.39 8132.77 7956.63
12/31/87 8972.77 8751.67 8671.93
01/31/88 9441.19 9119.24 8875.72
02/29/88 9760.15 9542.38 9401.16
03/31/88 9464.84 9248.47 9341.00
04/30/88 9558.38 9351.13 9425.06
05/31/88 9587.95 9430.61 9358.15
06/30/88 9866.34 9863.48 9879.40
07/31/88 9850.45 9826.00 9740.10
08/31/88 9712.61 9492.90 9445.94
09/30/88 10123.99 9897.29 9815.28
10/31/88 10284.85 10172.44 9897.73
11/30/88 10157.69 10026.97 9700.76
12/31/88 10315.85 10201.44 9954.92
01/31/89 10748.83 10948.19 10579.10
02/28/89 10523.54 10675.58 10445.80
03/31/89 10703.45 10924.32 10687.10
04/30/89 11093.68 11491.29 11227.87
05/31/89 11548.98 11954.39 11703.93
06/30/89 11571.45 11887.44 11561.14
07/31/89 12351.15 12959.69 12402.79
08/31/89 12392.32 13212.41 12715.34
09/30/89 12470.14 13158.24 12743.32
10/31/89 12301.69 12852.96 12331.71
11/30/89 12485.33 13113.88 12511.75
12/31/89 12714.60 13428.61 12644.37
01/31/90 12043.02 12527.55 11816.17
02/28/90 12159.27 12689.16 12019.41
03/31/90 12427.09 13025.42 12376.38
04/30/90 12407.52 12701.09 12096.68
05/31/90 13511.38 13936.90 13241.02
06/30/90 13429.13 13843.53 13272.80
07/31/90 13183.77 13799.23 13043.18
08/31/90 12168.90 12553.16 11826.25
09/30/90 11657.69 11943.07 11134.42
10/31/90 11556.48 11892.91 10918.41
11/30/90 12308.53 12660.01 11657.58
12/31/90 12778.78 13011.95 12057.44
01/31/91 13394.42 13576.67 12836.35
02/28/91 14025.80 14546.05 13772.12
03/31/91 14414.47 14898.06 14225.22
04/30/91 14176.39 14933.82 14220.96
05/31/91 14912.83 15575.97 14836.72
06/30/91 14241.19 14862.59 14081.53
07/31/91 14722.08 15555.19 14820.81
08/31/91 15120.73 15922.29 15286.19
09/30/91 14661.14 15656.39 15140.97
10/31/91 14858.74 15866.18 15460.44
11/30/91 14337.33 15228.36 14849.76
12/31/91 16123.47 16967.44 16518.87
01/31/92 15612.63 16651.85 16611.37
02/29/92 15990.38 16866.66 16872.17
03/31/92 15583.35 16539.44 16369.38
04/30/92 15936.49 17024.05 16295.72
05/31/92 15998.79 17107.47 16414.68
06/30/92 15619.50 16852.57 15933.73
07/31/92 16307.41 17540.15 16505.75
08/31/92 16194.90 17182.33 16150.88
09/30/92 16659.60 17385.08 16425.44
10/31/92 16966.37 17444.19 16768.73
11/30/92 17556.98 18037.29 17618.91
12/31/92 17437.50 18259.15 17937.81
01/31/93 17242.38 18412.53 18169.21
02/28/93 17319.36 18662.94 17898.49
03/31/93 17761.20 19056.73 18412.17
04/30/93 17383.67 18595.56 17843.24
05/31/93 17751.82 19092.06 18523.06
06/30/93 17480.50 19147.42 18565.67
07/31/93 17454.05 19070.83 18504.40
08/31/93 18032.42 19793.62 19300.09
09/30/93 18030.73 19641.21 19487.30
10/31/93 18305.05 20047.78 19754.28
11/30/93 18200.17 19857.33 19388.82
12/31/93 18645.43 20097.60 19937.53
01/31/94 19205.63 20780.92 20561.57
02/28/94 18847.59 20217.76 20246.98
03/31/94 17969.72 19338.28 19293.35
04/30/94 17997.43 19585.81 19362.80
05/31/94 18393.51 19905.06 19440.25
06/30/94 17979.24 19417.39 18777.34
07/31/94 18439.07 20054.28 19261.80
08/31/94 19077.57 20874.50 20180.58
09/30/94 18593.07 20365.16 19819.35
10/31/94 19065.14 20821.34 20140.42
11/30/94 18648.38 20063.44 19385.16
12/31/94 19105.23 20360.38 19563.50
01/31/95 19549.06 20887.72 19688.71
02/28/95 20437.02 21700.25 20432.94
03/31/95 20977.43 22340.41 21003.02
04/30/95 21286.14 22997.22 21441.98
05/31/95 21854.44 23914.80 22074.52
06/30/95 22538.12 24469.63 23034.76
07/31/95 23176.88 25279.57 24151.95
08/31/95 23463.03 25342.77 24345.17
09/30/95 24276.61 26412.24 25034.13
10/31/95 24052.47 26317.15 24651.11
11/30/95 25382.04 27469.84 25531.16
12/31/95 25443.95 28000.01 25620.51
01/31/96 25889.85 28952.01 26158.55
02/29/96 26274.06 29221.27 26775.89
03/31/96 26428.13 29501.79 27003.48
04/30/96 26715.83 29935.47 27902.70
05/31/96 27038.54 30704.81 28644.91
06/30/96 27116.63 30821.49 28235.29
07/31/96 25406.56 29459.18 26566.58
08/31/96 25988.25 30080.76 27493.76
09/30/96 27434.48 31771.30 29063.65
10/31/96 27682.30 32648.19 29278.72
11/30/96 29958.56 35113.13 31032.52
12/31/96 29119.93 34417.89 30585.65
01/31/97 29822.02 36565.57 32148.57
02/28/97 29495.06 36854.43 31682.42
03/31/97 28399.88 35343.40 30187.01
04/30/97 30341.67 37449.87 31309.97
</TABLE>
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 shares of
Vista Select Large Cap Growth Fund, the Standard & Poor's 500 Index and the
Lipper Growth Funds Average for the ten years ended 4/30/97. The performance of
the Fund assumes reinvestment of all dividends and capital gains.
The Lipper Growth Funds Average represents the average performance of a universe
of 851 actively managed growth mutual funds. Lipper is an independent mutual
fund performance monitor whose results are based on total return and do not
reflect a sales charge.
The Standard & Poor's 500 Index is a broad-based index that is generally
considered representative of the U.S. stock market. The index is unmanaged and
assumes the reinvestment of dividends. An individual cannot invest in the index.
The quoted performance of Vista Select Large Cap Growth Fund includes
performance of a predecessor account for the period dating back to 4/30/87 and
prior to the Fund's commencement of operations on 12/31/97. Returns are adjusted
to reflect historical expenses at the levels indicated (absent reimbursements)
in the Expense Summary for the Fund as disclosed in the Prospectus. The account
was not registered with the Securities and Exchange Commission and, therefore,
was not subject to the investment restrictions imposed by law on registered
mutual funds. If the account had been registered, the account's performance may
have been adversely affected. Also, the Fund is currently waiving certain fees.
This voluntary waiver may be modified or terminated at any time, which would
reduce returns.
9
<PAGE> 40
VISTA SELECT NEW GROWTH OPPORTUNITIES FUND
Vista Select New Growth Opportunities Fund, which seeks to provide capital
growth through a portfolio that consists primarily of the common stocks of small
and mid-sized companies, posted a total return of -8.61% for the six months
ended April 30, 1997.
MARKET PUNISHES SMALLER STOCKS
The Fund was affected by the high levels of volatility among small- and mid-cap
stocks during the reporting period, with the impact being especially severe on
the type of growth-oriented stocks in which the Fund invests.
The market was particularly harsh in March of 1997, when it uniformly punished
small company stocks with little regard for individual companies' business
prospects. Relying on Vista's disciplined five-step stock management system, the
management team was able to take advantage of the volatility to buy what it
believed were high-quality companies at newly-attractive prices relative to
their earnings growth rates. In particular, the management team was able to
increase holdings in high-growth technology and health care companies.
PRICES BEGIN RECOVERING AS PERIOD ENDS
As the reporting period ended, small-cap stock prices had begun recovering and
were beginning to show signs of re-establishing their historic market
leadership. The management team continues to believe that compelling valuations
relative to larger stocks make this an outstanding time to invest in small cap
stocks. They are confident that the market will eventually reward companies that
can maintain their earnings growth in the slower economic environment
anticipated for later this year.
10
<PAGE> 41
- --------------------------------------------------------------------------------
VISTA SELECT NEW GROWTH OPPORTUNITIES FUND
AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/97
<TABLE>
<S> <C>
One Year........................................................ -7.63%
Five Years...................................................... 10.30%
Since Inception (5/31/89)....................................... 10.69%
</TABLE>
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENTS IN THE FUND AND KEY BENCHMARKS
<TABLE>
<CAPTION>
SELECT NEW
GROWTH LIPPER MID
MEASUREMENT PERIOD OPPORTUNITIES RUSSELL 2000 CAP GROWTH
(FISCAL YEAR COVERED) FUND INDEX FUNDS AVG.
<S> <C> <C> <C>
05/31/89 10297.89 10431.00 10534.00
06/30/89 10182.21 10192.13 10258.01
07/31/89 10414.69 10585.55 10931.96
08/31/89 10669.57 10843.83 11283.97
09/30/89 10719.02 10878.53 11375.37
10/31/89 10145.16 10234.52 10926.04
11/30/89 10242.34 10303.10 11063.71
12/31/89 10451.00 10342.25 11136.73
01/31/90 9604.69 9438.34 10334.89
02/28/90 10041.70 9730.92 10659.40
03/31/90 10246.20 10109.46 11059.13
04/30/90 9741.85 9778.88 10821.36
05/31/90 10576.22 10471.22 11871.03
06/30/90 10714.94 10492.16 11969.56
07/31/90 10413.24 10030.51 11648.78
08/31/90 9541.43 8694.45 10466.42
09/30/90 9042.06 7924.99 9769.36
10/31/90 8533.05 7441.56 9459.67
11/30/90 9140.57 8008.61 10316.72
12/31/90 9447.08 8326.55 10816.05
01/31/91 9974.53 9079.27 11688.90
02/28/91 10734.04 10091.61 12600.64
03/31/91 11417.11 10802.06 13253.35
04/30/91 11646.53 10775.05 13173.83
05/31/91 12161.67 11289.03 13836.47
06/30/91 11533.88 10630.87 13098.99
07/31/91 12266.95 11004.02 13875.76
08/31/91 12540.29 11411.17 14376.67
09/30/91 12638.94 11500.17 14327.79
10/31/91 13359.36 11803.78 14796.31
11/30/91 12776.02 11257.26 14268.08
12/31/91 14136.94 12158.97 15933.17
01/31/92 14723.26 13143.85 16352.21
02/29/92 15062.73 13527.65 16586.05
03/31/92 14385.53 13070.41 15912.66
04/30/92 13809.98 12612.95 15476.65
05/31/92 13846.66 12780.70 15558.67
06/30/92 13304.68 12176.17 14962.78
07/31/92 13764.73 12599.90 15577.75
08/31/92 13419.28 12244.59 15157.15
09/30/92 13911.61 12527.44 15452.71
10/31/92 14283.43 12925.81 16024.46
11/30/92 15120.93 13914.63 17035.61
12/31/92 15455.93 14398.86 17582.45
01/31/93 16082.85 14885.55 17876.08
02/28/93 15768.91 14541.69 17279.02
03/31/93 16598.84 15012.84 17875.14
04/30/93 16247.42 14601.49 17283.47
05/31/93 17216.80 15246.87 18216.78
06/30/93 17317.11 15341.40 18378.91
07/31/93 17414.30 15553.12 18424.86
08/31/93 18377.62 16225.01 19241.08
09/30/93 18678.11 16682.56 19758.67
10/31/93 18780.04 17111.30 19936.49
11/30/93 18086.53 16548.34 19396.21
12/31/93 18821.18 17114.29 20270.98
01/31/94 19484.87 17651.68 20824.38
02/28/94 19518.24 17588.13 20722.34
03/31/94 18579.24 16659.48 19634.42
04/30/94 18514.56 16757.77 19661.91
05/31/94 18257.59 16570.08 19400.40
06/30/94 17756.36 16006.70 18579.77
07/31/94 18123.74 16269.21 19057.27
08/31/94 18938.91 17175.40 20233.10
09/30/94 19041.41 17118.73 20152.17
10/31/94 18974.80 17051.96 20458.48
11/30/94 18290.79 16363.06 19672.87
12/31/94 18465.20 16803.23 19999.44
01/31/95 18227.56 16591.51 19927.45
02/28/95 18967.04 17281.72 20776.36
03/31/95 19826.73 17578.96 21401.72
04/30/95 19909.24 17969.21 21652.12
05/31/95 20495.08 18278.28 22041.86
06/30/95 21085.31 19226.93 23291.64
07/31/95 22513.29 20334.40 24861.49
08/31/95 22730.40 20755.32 25169.77
09/30/95 23235.98 21126.84 25816.64
10/31/95 22128.67 20182.47 25178.97
11/30/95 22890.26 21030.13 26062.75
12/31/95 23021.60 21585.33 26266.04
01/31/96 23056.85 21561.59 26452.53
02/29/96 23487.35 22234.31 27404.82
03/31/96 23680.87 22687.89 27884.40
04/30/96 24416.11 23901.69 29370.64
05/31/96 24910.11 24843.42 30222.39
06/30/96 24198.35 23822.35 29312.70
07/31/96 21977.02 21742.66 26976.47
08/31/96 23746.69 23005.91 28562.69
09/30/96 25800.56 23905.44 30305.01
10/31/96 24677.62 23537.30 29868.62
11/30/96 24912.53 24507.03 31155.96
12/31/96 24726.59 25149.12 30987.72
01/31/97 25391.27 25652.10 31960.73
02/28/97 24320.90 25031.32 30899.64
03/31/97 22433.69 23849.84 29190.89
04/30/97 22552.57 23916.62 29590.80
</TABLE>
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 shares of
Vista Select New Growth Opportunities Fund, the Russell 2000 Index and the
Lipper Mid-Cap Growth Funds Average from 5/31/89 to 4/30/97. The performance of
the Fund assumes reinvestment of all dividends and capital gains.
The Lipper Mid-Cap Growth Funds Average represents the average performance of a
universe of 232 actively-managed stock mutual funds. Lipper is an independent
mutual fund performance monitor whose results are based on total return and do
not reflect a sales charge.
The Russell 2000 Index tracks the shares of 2,000 small-capitalization
companies. The index is unmanaged and assumes the reinvestment of dividends. An
individual cannot invest in the index.
The quoted performance of Vista Select New Growth Opportunities includes
performance of a predecessor account for the period dating back to 5/31/89 and
prior to the Fund's commencement of operations on 12/31/96. Returns are adjusted
to reflect historical expenses at the levels indicated (absent reimbursements)
in the Expense Summary for the Fund as disclosed in the prospectus. The account
was not registered with the Securities and Exchange Commission and, therefore,
was not subject to the investment restrictions imposed by law on registered
mutual funds. If the account had been registered, the account's performance may
have been adversely affected. Also, the Fund is currently waiving certain fees.
This voluntary waiver may be modified or terminated at any time, which would
reduce returns.
11
<PAGE> 42
VISTA SELECT SMALL CAP VALUE FUND
Vista Select Small Cap Value Fund, which seeks capital growth by investing in
small cap common stocks, had a total return of -1.27% for the six months ended
April 30, 1997.
MANAGING IN A DIFFICULT PERIOD FOR SMALLER STOCKS
The Fund was unable to overcome the broad weakness in small cap issues during
the reporting period. The market was particularly harsh in March of 1997, when
it uniformly punished small company stocks, with little regard for individual
companies' business prospects. Relying on Vista's disciplined five-step stock
management system, the management team was able to take advantage of the
volatility to buy what it believed were high-quality companies at
newly-attractive prices.
Throughout the period, the Fund maintained broad diversification by industry
sector. As small cap prices fell, however, the management was able to increase
holdings in certain high-quality technology and health care companies whose
prices had previously been too high for its value-oriented portfolio.
PRICES BEGIN RECOVERING AS PERIOD ENDS
As the reporting period ended, small-cap stock prices had begun recovering and
were beginning to show signs of re-establishing their historic market
leadership. The management team continues to believe that compelling valuations
relative to larger stocks make this an outstanding time to invest in small cap
stocks, and is confident that this valuation advantage may help deliver stronger
performance over the long term.
12
<PAGE> 43
- --------------------------------------------------------------------------------
VISTA SELECT SMALL CAP VALUE FUND
AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/97
<TABLE>
<S> <C>
One Year........................................................ -0.52%
Five Years...................................................... 14.44%
Ten Years....................................................... 11.70%
</TABLE>
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENTS IN THE FUND AND KEY BENCHMARKS
<TABLE>
<CAPTION>
SELECT SMALL LIPPER SMALL
MEASUREMENT PERIOD CAP VALUE RUSSELL 2000 CAP FUNDS
(FISCAL YEAR COVERED) FUND INDEX AVG.
<S> <C> <C> <C>
04/30/87 10000.00 10000.00 10000.00
05/31/87 10057.62 9968.00 9996.00
06/30/87 10527.66 10224.18 10131.95
07/31/87 10847.39 10543.17 10435.90
08/31/87 11186.13 10855.25 10816.81
09/30/87 10868.44 10657.68 10628.60
10/31/87 8266.49 7393.24 7788.64
11/30/87 7855.09 6997.70 7337.68
12/31/87 8426.67 7561.01 8126.48
01/31/88 8715.22 7890.67 8285.76
02/29/88 9323.88 8601.62 8922.93
03/31/88 9470.61 9004.18 9195.08
04/30/88 9581.13 9208.57 9395.53
05/31/88 9647.28 8960.86 9234.87
06/30/88 10035.04 9599.77 9902.55
07/31/88 9998.81 9508.57 9686.68
08/31/88 9802.73 9266.10 9379.61
09/30/88 10180.70 9511.66 9676.00
10/31/88 10241.10 9406.08 9550.22
11/30/88 10124.41 9094.74 9300.95
12/31/88 10348.99 9452.16 9724.15
01/31/89 10653.22 9874.67 10244.39
02/28/89 10545.66 9946.76 10278.20
03/31/89 10756.46 10181.50 10506.37
04/30/89 11026.41 10625.41 11086.32
05/31/89 11405.95 11083.37 11610.71
06/30/89 11336.93 10829.56 11284.45
07/31/89 11940.26 11247.58 11881.39
08/31/89 12199.77 11522.02 12269.92
09/30/89 12106.49 11558.89 12393.84
10/31/89 11679.58 10874.60 11841.08
11/30/89 11628.96 10947.46 11918.04
12/31/89 11586.24 10989.07 12050.33
01/31/90 10864.55 10028.62 11020.03
02/28/90 10926.59 10339.51 11368.26
03/31/90 11115.38 10741.71 11891.20
04/30/90 10992.28 10390.46 11626.03
05/31/90 11760.75 11126.11 12709.57
06/30/90 11881.46 11148.36 12811.25
07/31/90 11733.60 10657.83 12352.61
08/31/90 10433.17 9238.21 10819.65
09/30/90 9593.15 8420.63 9904.31
10/31/90 9289.11 7906.97 9510.12
11/30/90 9851.63 8509.48 10255.71
12/31/90 10461.38 8847.30 10809.52
01/31/91 11186.51 9647.10 11730.49
02/28/91 12036.68 10722.75 12760.43
03/31/91 12739.36 11477.63 13557.95
04/30/91 12558.57 11448.94 13475.25
05/31/91 12903.66 11995.06 14096.46
06/30/91 12474.99 11295.74 13342.30
07/31/91 12761.56 11692.22 14141.50
08/31/91 13150.82 12124.84 14745.34
09/30/91 13305.63 12219.41 14827.92
10/31/91 13159.01 12542.00 15315.75
11/30/91 12911.04 11961.31 14687.81
12/31/91 14220.16 12919.41 16335.78
01/31/92 15215.79 13965.88 17121.53
02/29/92 15818.73 14373.68 17426.30
03/31/92 15644.48 13887.85 16758.87
04/30/92 15411.11 13401.78 16066.73
05/31/92 15657.24 13580.02 16066.73
06/30/92 15298.23 12937.69 15393.53
07/31/92 15952.02 13387.92 15924.61
08/31/92 15835.41 13010.38 15580.64
09/30/92 16184.14 13310.92 15912.50
10/31/92 16718.79 13734.21 16591.97
11/30/92 18159.10 14784.87 17916.01
12/31/92 19066.53 15299.39 18512.61
01/31/93 19324.71 15816.51 18947.66
2/28/93 19378.82 15451.15 18320.49
3/31/93 19801.09 15951.76 18954.38
4/30/93 19065.99 15514.68 18391.43
5/31/93 19911.95 16200.43 19356.98
6/30/93 20063.35 16300.88 19523.45
7/31/93 20477.03 16525.83 19646.45
8/31/93 21465.59 17239.74 20585.55
9/30/93 22078.01 17725.90 21227.82
10/31/93 22585.66 18181.46 21578.08
11/30/93 22122.25 17583.29 20868.16
12/31/93 23334.30 18184.64 21734.19
2/31/94 23503.26 18755.64 22305.80
2/28/94 23505.63 18688.12 22303.57
3/31/94 22339.06 17701.38 21119.25
4/30/94 21739.02 17805.82 21117.14
5/31/94 22109.88 17606.40 20726.47
6/30/94 22275.98 17007.78 19918.14
7/31/94 22323.83 17286.71 20268.70
8/31/94 23257.52 18249.58 21513.19
9/30/94 23301.55 18189.35 21633.67
10/31/94 23631.20 18118.41 21914.91
11/30/94 22683.43 17386.43 21132.54
12/31/94 22929.88 17854.12 21624.93
1/31/95 23245.98 17629.16 21365.43
2/28/95 23840.35 18362.54 22235.01
3/31/95 24035.33 18678.37 22855.36
4/30/95 24204.44 19093.03 23145.63
5/31/95 24602.06 19421.43 23504.38
6/30/95 25725.11 20429.40 24902.89
7/31/95 26759.36 21606.14 26755.67
8/31/95 27267.60 22053.38 27199.81
9/30/95 27900.14 22448.14 27863.49
10/31/95 26897.14 21444.71 26924.49
11/30/95 27737.29 22345.39 28004.16
12/31/95 27484.08 22935.30 28477.43
1/31/96 27479.18 22910.08 28349.28
2/29/96 28057.09 23624.87 29568.30
3/31/96 29102.18 24106.82 30354.82
4/30/96 30422.99 25396.53 32695.18
5/31/96 30700.81 26397.16 34078.18
6/30/96 30328.29 25312.23 32728.69
7/31/96 29008.85 23102.47 29907.47
8/31/96 30308.32 24444.73 31749.77
9/30/96 31313.48 25400.52 33384.89
10/31/96 30654.59 25009.35 32707.17
11/30/96 31921.37 26039.73 33662.22
12/31/96 31842.55 26721.98 34140.23
1/31/97 31313.03 27256.41 35000.56
2/28/97 31263.92 26596.81 33541.04
3/31/97 30068.12 25341.44 31786.84
4/30/97 30265.17 25412.40 31545.26
</TABLE>
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 shares of
Vista Select Small Cap Value Fund, the Russell 2000 Index and the Lipper Small
Company Growth Funds Average for the ten years ended 4/30/97. The performance of
the Fund assumes reinvestment of all dividends and capital gains.
The Lipper Small Company Growth Funds Average represents the average performance
of a universe of 463 actively managed stock mutual funds. Lipper is an
independent mutual fund performance monitor whose results are based on total
return and do not reflect a sales charge.
The Russell 2000 Index tracks the shares of 2,000 small-capitalization
companies. The index is unmanaged and assumes the reinvestment of dividends. An
individual cannot invest in the index.
The quoted performance of Vista Select Small Cap Value Fund includes performance
of a predecessor account for the period dating back to 4/30/87 and prior to the
Fund's commencement of operations on 12/31/96. Returns are adjusted to reflect
historical expenses at the levels indicated (absent reimbursements) in the
Expense Summary for the Fund as disclosed in the Prospectus. The account was not
registered with the Securities and Exchange Commission and, therefore, was not
subject to the investment restrictions imposed by law on registered mutual
funds. If the account had been registered, the account's performance may have
been adversely affected. Also, the Fund is currently waiving certain fees. This
voluntary waiver may be modified or terminated at any time, which would reduce
returns.
Small capitalization funds typically carry more risk than stock funds investing
in well-established "blue-chip" companies since smaller companies generally have
a higher risk of failure. Historically, smaller companies' stock has experienced
a greater degree of market volatility than the average stock.
13
<PAGE> 44
VISTA SELECT INTERNATIONAL EQUITY FUND
Vista Select International Equity Fund, which seeks long-term growth of capital
by investing in the common stocks of established overseas companies, provided
shareholders with a total return of 6.85% for the six months ended April 30,
1997.
FUND MAINTAINS ITS OVERWEIGHTING IN EUROPE
During a generally positive period for international equities, the Fund was able
to outperform its benchmark by overweighting European equities while limiting
exposure to the poorly-performing Japanese market.
Within Europe, markets were bolstered by improvements in economic growth, a
continuation of relaxed monetary policies, low inflation and further corporate
restructuring that led to many positive earnings surprises. The restructuring
theme, in particular, remained evident in the Fund's holdings and was beneficial
to overall performance.
Moving forward, the management team believes that the resumption of strong
economic growth will be essential for progress in the Japanese equity markets.
Until such growth is evident, the Fund will remain underweight in the country's
securities.
MANAGEMENT TEAM CONTINUES TO BUILD POSITIONS IN LATIN AMERICA AND SOUTHEAST ASIA
With Latin American markets performing well, the Fund added to positions,
focusing on companies the management team believes will benefit from the ongoing
process of economic reform in the region. A slightly-overweight position was
also maintained in Southeast Asia, with specific emphasis on Hong Kong-based
companies, which the management team believes are well-positioned on a valuation
basis. In both Latin America and Southeast Asia, a high degree of selectivity is
being applied to both country and individual security decisions.
The management team believes that international markets offer long-term U.S.
investors significant opportunities for capital appreciation. Using Vista's
disciplined international stock management system, which includes tools that
help smooth out the effects of currency fluctuations, the Fund will continue to
be a source for a diversified portfolio of high-quality overseas investments.
14
<PAGE> 45
- --------------------------------------------------------------------------------
VISTA SELECT INTERNATIONAL EQUITY FUND
AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/97
<TABLE>
<S> <C>
One Year.......................................................... 3.27%
Since Inception (5/31/93)......................................... 6.19%
</TABLE>
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENTS IN THE FUND AND KEY BENCHMARKS
<TABLE>
<CAPTION>
SELECT LIPPER
MEASUREMENT PERIOD INTERNATIONAL MSCI EAFE INTERNATIONAL
(FISCAL YEAR COVERED) EQUITY FUND INDEX FUNDS AVG.
<S> <C> <C> <C>
05/31/93 10000.00 10000.00 10000.00
06/30/93 9855.40 9846.00 9787.00
07/31/93 10147.13 10192.58 10093.33
08/31/93 10600.63 10745.02 10720.13
09/30/93 10482.12 10505.40 10657.95
10/31/93 10654.44 10831.07 11122.64
11/30/93 9990.72 9886.60 10674.40
12/31/93 10651.25 10602.39 11668.18
01/31/94 11255.15 11501.47 12391.61
02/28/94 10905.59 11471.57 12123.95
03/31/94 10530.73 10979.44 11584.44
04/30/94 10611.50 11448.26 11877.52
05/31/94 10536.23 11385.30 11837.14
06/30/94 10476.58 11549.24 11714.03
07/31/94 10679.14 11662.43 12033.83
08/31/94 10900.92 11941.16 12387.62
09/30/94 10418.55 11567.40 12077.93
10/31/94 10481.11 11954.91 12313.45
11/30/94 10129.69 11383.46 11708.86
12/31/94 10209.01 11457.46 11591.77
01/31/95 9957.71 11019.78 11015.66
02/28/95 9725.71 10991.13 11025.57
03/31/95 10014.94 11680.27 11389.42
04/30/95 10228.15 12122.96 11757.30
05/31/95 10008.81 11981.12 11853.70
06/30/95 9814.63 11773.84 11848.96
07/31/95 10334.74 12509.71 12485.25
08/31/95 10573.97 12035.59 12249.28
09/30/95 10768.31 12273.90 12429.35
10/31/95 10639.05 11947.41 12177.03
11/30/95 10819.12 12283.13 12307.32
12/31/95 11212.15 12780.60 12677.77
01/31/96 11602.59 12835.56 12952.88
02/29/96 11517.08 12881.76 13004.69
03/31/96 11773.68 13158.72 13230.98
04/30/96 12252.40 13544.27 13655.69
05/31/96 12095.87 13297.77 13620.19
06/30/96 12260.92 13376.22 13714.16
07/31/96 11738.36 12988.31 13212.23
08/31/96 11666.84 13019.49 13356.24
09/30/96 12109.02 13368.41 13644.73
10/31/96 11842.24 13234.72 13551.95
11/30/96 12373.04 13764.11 14130.62
12/31/96 12383.33 13590.69 14175.84
01/31/97 12300.65 13117.73 14134.73
02/28/97 12619.88 13335.48 14334.03
03/31/97 12620.02 13387.49 14365.56
04/30/97 12653.25 13461.12 14394.29
</TABLE>
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 shares of
Vista Select International Equity Fund, the MSCI EAFE Index and the Lipper
International Funds Average from 5/31/93 to 4/30/97. The performance of the Fund
assumes reinvestment of all dividends and capital gains.
The Lipper International Funds Average represents the average performance of a
universe of 416 actively managed international stock funds. Lipper is an
independent mutual fund performance monitor whose results are based on total
return and do not reflect a sales charge.
The MSCI EAFE (Europe, Australia, Far East) Index is representative of the
performance of the world's equity markets, excluding the U.S. and Canada. The
index is unmanaged and assumes the reinvestment of dividends. An individual
cannot invest in the index.
The quoted performance of Vista Select International Equity Fund includes
performance of a predecessor account for the period dating back to 5/31/93 and
prior to the Fund's commencement of operations on 12/31/96. Returns are adjusted
to reflect historical expenses at the levels indicated (absent reimbursements)
in the Expense Summary for the Fund as disclosed in the Prospectus. The account
was not registered with the Securities and Exchange Commission and, therefore,
was not subject to the investment restrictions imposed by law on registered
mutual funds. If the account had been registered, the account's performance may
have been adversely affected. Also, the Fund is currently waiving certain fees.
This voluntary waiver may be modified or terminated at any time, which would
reduce returns.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting and
taxation policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the U.S.
or other nations.
15
<PAGE> 46
VISTA SELECT BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- 94.7%
------------------------------------------------------------------------------------
COMMON STOCK -- 50.3%
--------------------------------------------------------
AEROSPACE -- 0.8%
25,000 Precision Castparts Corp. $ 1,337,500
-------------
AGRICULTURAL PRODUCTION/SERVICES -- 0.7%
22,000 Case Corp. 1,218,250
-------------
AIRLINES -- 0.5%
9,000 AMR Corp. * 838,125
-------------
AUTOMOTIVE -- 1.0%
18,000 General Motors 1,041,750
20,000 Pep Boys -- Manny, Moe & Jack 652,500
-------------
1,694,250
-------------
BANKING -- 2.7%
15,000 BankBoston Corp. 1,091,250
25,000 Barnett Banks, Inc. 1,221,875
18,000 First Union Corp. 1,512,000
10,000 J.P. Morgan & Company, Inc. 1,018,750
-------------
4,843,875
-------------
CHEMICALS -- 1.4%
15,000 Dow Chemical Co. 1,273,125
12,000 duPont (EI) deNemours 1,273,500
-------------
2,546,625
-------------
COMPUTER SOFTWARE -- 1.0%
15,000 Cisco Systems, Inc. * 776,250
18,000 Computer Associates International 936,000
-------------
1,712,250
-------------
COMPUTERS/COMPUTER HARDWARE -- 1.7%
10,000 Compaq Computer Corp. * 853,750
35,000 EMC Corp. * 1,273,125
5,400 International Business Machines Corp. 868,050
-------------
2,994,925
-------------
CONSTRUCTION MACHINERY -- 0.7%
15,000 Caterpillar Tractor, Inc. 1,335,000
-------------
</TABLE>
See notes to financial statements.
16
<PAGE> 47
VISTA SELECT BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
CONSUMER PRODUCTS -- 2.9%
20,000 Avon Products, Inc. $ 1,232,500
60,000 Philip Morris Companies, Inc. 2,362,500
12,000 Procter & Gamble Co. 1,509,000
-------------
5,104,000
-------------
DIVERSIFIED -- 1.8%
30,000 Corning Inc. 1,447,500
2,000 Echelon International Corp., Inc. * 37,750
20,000 Minnesota Mining and Manufacturing Co. 1,740,000
-------------
3,225,250
-------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 2.3%
15,000 Atmel Corp. * 373,125
20,000 General Electric Co. 2,217,500
10,000 Intel Corp. 1,531,250
-------------
4,121,875
-------------
ENTERTAINMENT/LEISURE -- 0.7%
32,000 Carnival Corp., Class A 1,180,000
-------------
FINANCIAL SERVICES -- 1.8%
40,000 Countrywide Credit Industries, Inc. 1,085,000
30,000 Federal Home Loan Mortgage Corp. 956,250
40,000 Green Tree Financial Corp. 1,185,000
-------------
3,226,250
-------------
FOOD/BEVERAGE PRODUCTS -- 1.5%
25,000 ConAgra, Inc. 1,440,625
35,000 PepsiCo., Inc. 1,220,625
-------------
2,661,250
-------------
HEALTH CARE/HEALTH CARE SERVICES -- 1.5%
35,000 Columbia/HCA Healthcare Corp. 1,225,000
70,000 HEALTHSOUTH Corp. * 1,382,500
-------------
2,607,500
-------------
INSURANCE -- 1.5%
20,000 Allstate Corp. 1,310,000
10,000 American International Group 1,285,000
-------------
2,595,000
-------------
MANUFACTURING -- 0.8%
23,000 Tyco International, Ltd. 1,403,000
-------------
</TABLE>
See notes to financial statements.
17
<PAGE> 48
VISTA SELECT BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
METALS/MINING -- 0.7%
19,000 Aluminum Co. of America (ALCOA) $ 1,327,625
-------------
OFFICE/BUSINESS EQUIPMENT -- 0.5%
15,000 Xerox Corp. 922,500
-------------
OIL & GAS -- 7.6%
10,000 Chevron Corp. 685,000
20,000 Coastal Corp. 950,000
40,000 Exxon Corp. 2,265,000
16,000 Halliburton Co. 1,130,000
17,000 Mobil Corp. 2,210,000
150,000 NUI Corp. 2,943,750
6,000 Royal Dutch Petroleum Co. 1,081,500
10,000 Texaco, Inc. 1,055,000
25,000 Williams Companies, Inc. 1,096,875
-------------
13,417,125
-------------
PAPER/FOREST PRODUCTS -- 0.6%
18,000 Willamette Industries, Inc. 1,147,500
-------------
PHARMACEUTICALS -- 4.7%
34,000 Bristol-Myers Squibb Co. 2,227,000
25,000 Johnson & Johnson 1,531,250
25,000 Merck & Company, Inc. 2,262,500
25,000 Pfizer, Inc. 2,400,000
-------------
8,420,750
-------------
PHOTOGRAPHIC EQUIPMENT -- 0.7%
15,000 Eastman Kodak Co. 1,252,500
-------------
PRINTING & PUBLISHING -- 0.7%
28,000 New York Times Co., Class A 1,211,000
-------------
REAL ESTATE INVESTMENT TRUST -- 0.6%
35,000 Beacon Properties Corp. 1,080,625
-------------
RESTAURANTS/FOOD SERVICES -- 0.6%
20,000 McDonald's Corp. 1,072,500
-------------
</TABLE>
See notes to financial statements.
18
<PAGE> 49
VISTA SELECT BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
RETAILING -- 2.9%
30,000 CVS Corp. $ 1,488,750
30,000 Dayton-Hudson Corp. 1,350,000
50,000 Kroger Co. * 1,375,000
20,000 Sears Roebuck & Co. 960,000
-------------
5,173,750
-------------
SHIPPING/TRANSPORTATION -- 0.3%
6,000 Burlington Northern, Inc. 472,500
-------------
TELECOMMUNICATIONS -- 4.0%
18,000 Ameritech Corp. 1,100,250
50,000 BellSouth Corp. 2,225,000
25,000 GTE Corp. 1,146,875
20,114 SBC Communications, Inc. 1,116,327
15,000 Telefonaktiebolaget LM Ericsson, Sp, ADR (Sweden) 504,375
40,000 WorldCom, Inc. * 960,000
-------------
7,052,827
-------------
UTILITIES -- 1.1%
37,500 OGE Energy Corp. 1,556,250
17,500 Sierra Pacific Resources 496,563
-------------
2,052,813
-------------
TOTAL COMMON STOCK (COST $66,046,673) 89,248,940
-------------
CONVERTIBLE PREFERRED STOCK -- 1.8%
--------------------------------------------------------
BANKING -- 0.6%
12,000 Banc One Corp., Ser. C, $3.50 999,000
-------------
DIVERSIFIED -- 0.7%
17,000 Corning Delaware LP, 6.00% Ser. 1,292,000
-------------
TELECOMMUNICATIONS -- 0.5%
20,000 AirTouch Communications, 4.25%, 08/16/16 910,000
-------------
TOTAL CONVERTIBLE PREFERRED STOCK (COST $2,509,453) 3,201,000
-------------
</TABLE>
See notes to financial statements.
19
<PAGE> 50
VISTA SELECT BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
CORPORATE NOTES & BONDS -- 15.3%
--------------------------------------------------------
BANKING -- 1.6%
$ 3,000,000 Bankers Trust Capital Trust A, 7.90%, 01/15/27 $ 2,812,500
-------------
ENTERTAINMENT/LEISURE -- 2.8%
5,000,000 Time Warner Inc., 7.75%, 06/15/05 4,995,350
-------------
FINANCIAL SERVICES -- 4.5%
2,000,000 Corp. Andina de Fomento, Yankee (Venezuela), 7.25%, 1,998,125
03/01/07
3,500,000 Federal Home Loan Bank, 8.75%, 02/03/05 3,555,230
2,500,000 Federal Home Loan Mortgage Corp., 6.99%, 07/26/06 2,490,225
-------------
8,043,580
-------------
GOVERNMENT ISSUE -- 0.5%
1,000,000 Republic of Colombia, Global Bond, 8.375%, 02/15/27 908,750
-------------
PHARMACEUTICALS -- 0.6%
1,000,000 ALZA Corp., 5.00%, 05/01/06 995,000
-------------
TELECOMMUNICATIONS -- 3.2%
1,000,000 360 Communications Corp., 7.50%, 03/01/06 984,300
4,700,000 Bellsouth Telecommunications, 7.875%, 08/01/32 4,634,623
-------------
5,618,923
-------------
UTILITIES -- 2.1%
2,000,000 Chilgener SA, Yankee (Chile), 6.50%, 01/15/06 1,869,260
1,000,000 Enersis SA, Yankee (Cayman Islands), 6.90%, 12/01/06 949,110
1,000,000 Ras Laffan Liquefied Natural Gas, Yankee (Qatar), 1,013,826
8.294%, 03/15/14 #
-------------
3,832,196
-------------
TOTAL CORPORATE NOTES & BONDS (COST $27,416,999) 27,206,299
-------------
CONVERTIBLE CORPORATE NOTES & BONDS -- 1.9%
--------------------------------------------------------
COMPUTERS/COMPUTER HARDWARE -- 0.8%
300,000 EMC Corp., 3.25%, 03/15/02 # 310,500
1,000,000 Solectron Corp., 6.00%, 03/01/06 # 1,104,290
-------------
1,414,790
-------------
FINANCIAL SERVICES -- 0.8%
500,000 American Residential Services, 7.25%, 04/15/04 # 490,000
500,000 First Financial Management, 5.00%, 12/15/99 804,375
-------------
1,294,375
-------------
</TABLE>
See notes to financial statements.
20
<PAGE> 51
VISTA SELECT BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
RETAILING -- 0.3%
$ 500,000 Federated Department Stores, 5.00%, 10/01/03 $ 577,500
-------------
TOTAL CONVERTIBLE CORPORATE NOTES & BONDS 3,286,665
(COST $3,189,203) -------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 8.4%
--------------------------------------------------------
Federal Home Loan Mortgage Corp.,
3,000,000 7.675%, 01/30/07 2,963,430
1,500,000 8.00%, 04/09/07 1,496,715
Government National Mortgage Association,
2,991,961 Pool #351335, 6.50%, 11/15/23 2,837,695
2,015,702 Pool #436740, 8.00%, 12/15/26 2,042,773
2,013,518 Pool #437682, 8.00%, 12/15/27 2,040,560
505,000 Pool #446223, 8.00%, 04/15/27 511,782
2,910,259 Pool #780319, 9.00%, 11/15/17 3,098,902
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST 14,991,857
$15,105,538) -------------
MORTGAGE BACKED SECURITIES -- 4.2%
--------------------------------------------------------
MORTGAGE PASS THROUGH -- 1.0%
1,584,000 Federal National Mortgage Association, 10.00%, 30 1,726,065
year, TBA 04/15/27 -------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 3.2%
Federal Home Loan Mortgage Corp.,
1,581,291 Mortgage Cash Flow Obligations, Ser. A, Class 4, 1,642,566
12/30/08
1,000,000 Ser. 1360, Class PK, 10.00%, 12/15/20 1,127,810
1,000,000 Ser. 1865, Class G, 8.00%, 08/15/24 1,017,502
2,000,000 Prudential Home Mortgage Securities, Ser. 1993-14, 1,935,000
Class A1, 7.00%, 05/23/23 -------------
5,722,878
-------------
TOTAL MORTGAGE BACKED SECURITIES (COST $7,367,131) 7,448,943
-------------
</TABLE>
See notes to financial statements.
21
<PAGE> 52
VISTA SELECT BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
U.S. TREASURY SECURITIES -- 12.8%
--------------------------------------------------------
U.S. Treasury Notes & Bonds,
$ 12,850,000 8.25%, 07/15/98 $ 13,171,250
900,000 8.50%, 11/15/00 956,529
3,000,000 7.875%, 11/15/04 3,205,320
1,200,000 7.00%, 07/15/06 1,220,244
3,550,000 8.75%, 08/15/20 4,231,706
-------------
TOTAL U.S. TREASURY SECURITIES (COST $23,019,404) 22,785,049
- ------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS 168,168,753
(COST $144,654,401)
- ------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 4.2%
- ------------------------------------------------------------------------------------
TIME DEPOSIT -- 4.2%
--------------------------------------------------------
7,569,000 Key Bank 5.688%, 05/01/97 (Cost $7,569,000) 7,569,000
- ------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 98.9% $ 175,737,753
(COST $152,223,401)
- ------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
22
<PAGE> 53
VISTA SELECT EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- 95.3%
------------------------------------------------------------------------------------
COMMON STOCK -- 77.8%
--------------------------------------------------------
AEROSPACE -- 3.9%
200,000 Precision Castparts Corp. $ 10,700,000
192,000 Sundstrand Corp. 9,360,000
170,000 United Technologies, Corp. 12,856,250
-------------
32,916,250
-------------
AGRICULTURAL PRODUCTION/SERVICES -- 0.7%
100,000 Case Corp. 5,537,500
-------------
AUTOMOTIVE -- 1.3%
140,000 Chrysler Corp. 4,200,000
200,000 Lear Corp. * 7,150,000
-------------
11,350,000
-------------
BANKING -- 4.1%
210,000 Bank of New York Company, Inc. 8,295,000
80,000 BankAmerica Corp. 9,350,000
100,000 NationsBank Corp. 6,037,500
42,333 Wells Fargo & Co. 11,292,328
-------------
34,974,828
-------------
BUSINESS SERVICES -- 1.8%
112,200 Ceridian Corp. 3,744,675
380,000 ServiceMaster L.P. 11,732,500
-------------
15,477,175
-------------
CHEMICALS -- 1.3%
40,000 Dow Chemical Co. 3,395,000
75,000 duPont (EI) deNemours 7,959,375
-------------
11,354,375
-------------
COMPUTER SOFTWARE -- 0.8%
132,500 Computer Associates International 6,890,000
-------------
COMPUTERS/COMPUTER HARDWARE -- 2.1%
35,000 International Business Machines Corp. 5,626,250
135,500 Texas Instruments 12,093,375
-------------
17,719,625
-------------
CONSUMER PRODUCTS -- 2.8%
405,000 Philip Morris Companies, Inc. 15,946,875
250,000 RJR Nabisco Holdings Corp. 7,437,500
-------------
23,384,375
-------------
</TABLE>
See notes to financial statements.
23
<PAGE> 54
VISTA SELECT EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 2.3%
60,000 Intel Corp. $ 9,187,500
300,000 Micron Technology, Inc. 10,575,000
-------------
19,762,500
-------------
ENTERTAINMENT/LEISURE -- 1.8%
406,438 Carnival Corp., Class A 14,987,401
-------------
FINANCIAL SERVICES -- 5.0%
200,000 American Express Co. 13,175,000
500,000 Federal Home Loan Mortgage Corp. 15,937,500
190,000 Federal National Mortgage Assoc. 7,813,750
150,000 Lehman Brothers Holding, Inc. 5,081,250
-------------
42,007,500
-------------
FOOD/BEVERAGE PRODUCTS -- 1.1%
46,000 Unilever NV, ADR (Netherlands) 9,027,500
-------------
HEALTH CARE/HEALTH CARE SERVICES -- 3.1%
350,500 Columbia/HCA Healthcare Corp. 12,267,500
300,000 Tenet Healthcare Corp. * 7,800,000
192,982 US Surgical Corp. 6,609,634
-------------
26,677,134
-------------
HOTELS/OTHER LODGING -- 0.1%
37,708 Homestead Village, Inc. 650,463
-------------
INSURANCE -- 4.7%
166,351 Allstate Corp. 10,895,991
122,500 American International Group 15,741,250
100,000 Loews Corp. 9,187,500
342,500 Reliance Group Holdings, Inc. 3,810,312
-------------
39,635,053
-------------
MANUFACTURING -- 0.8%
180,000 Johnson Controls 6,907,500
-------------
METALS/MINING -- 2.1%
255,000 Aluminum Co. of America (ALCOA) 17,818,125
-------------
</TABLE>
See notes to financial statements.
24
<PAGE> 55
VISTA SELECT EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
OIL & GAS -- 10.9%
100,000 British Petroleum PLC, ADR (United Kingdom) $ 13,762,500
285,000 Elf Aquitaine SA, ADR (France) 13,858,125
410,000 Enterprise Oil PLC, ADR (United Kingdom) 12,197,500
170,000 Exxon Corp. 9,626,250
61,000 Mobil Corp. 7,930,000
150,000 NUI Corp. 2,943,750
150,000 PanEnergy Corp. 6,637,500
70,000 Royal Dutch Petroleum Co. 12,617,500
300,000 Williams Companies, Inc. 13,162,500
-------------
92,735,625
-------------
PHARMACEUTICALS -- 6.3%
200,000 American Home Products Corp. 13,250,000
284,000 Bristol-Myers Squibb Co. 18,602,000
150,000 Schering-Plough Corp. 12,000,000
125,000 SmithKline Beecham PLC, ADR (United Kingdom) 10,078,125
-------------
53,930,125
-------------
PHOTOGRAPHIC EQUIPMENT -- 0.2%
25,000 Eastman Kodak Co. 2,087,500
-------------
REAL ESTATE INVESTMENT TRUST -- 10.4%
386,500 Beacon Properties Corp. 11,933,188
250,000 Cali Realty Corp. 7,375,000
243,724 Chateau Properties, Inc. 6,367,284
294,200 Duke Realty Investments, Inc. 10,811,850
400,000 Equity Residential Properties Trust 17,500,000
330,000 FelCor Suite Hotels, Inc. 11,838,750
140,000 Health Care Property Investors, Inc. 4,637,500
413,500 Security Capital Industrial Trust 8,321,687
300,000 Security Capital Pacific Trust 6,825,000
70,000 Storage USA, Inc. 2,633,750
-------------
88,244,009
-------------
RETAILING -- 1.7%
519,132 Kroger Co. * 14,276,130
-------------
SHIPPING/TRANSPORTATION -- 0.5%
50,000 Burlington Northern, Inc. 3,937,500
-------------
</TABLE>
See notes to financial statements.
25
<PAGE> 56
VISTA SELECT EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
TELECOMMUNICATIONS -- 4.1%
315,000 BellSouth Corp. $ 14,017,500
205,000 GTE Corp. 9,404,375
57,000 Sprint Corp. 2,500,875
75,000 Telecomunicacoes Brasileiros SA, ADR (Brazil) 8,606,250
-------------
34,529,000
-------------
UTILITIES -- 3.9%
325,000 Centrais Electricas Brasileiras SA-Electrobras, ADR 7,593,723
(Brazil)
74,000 CESP-Companhia Energetica de Sao Paulo, ADR (Brazil) 1,179,360
200,000 Companhia Energetica de Minas Gerais (CEMIG), ADR 9,101,680
(Brazil)
250,000 DPL, Inc. 5,906,250
150,000 FPL Group Inc. 6,693,750
100,000 Pinnacle West Capital Corp. 2,850,000
-------------
33,324,763
-------------
TOTAL COMMON STOCK (COST $508,022,692) 660,141,956
-------------
CONVERTIBLE PREFERRED STOCK -- 6.1%
--------------------------------------------------------
AEROSPACE -- 0.7%
125,000 Loral Space & Communications, 6.00%, 11/01/06 # 5,983,000
-------------
FINANCIAL SERVICES -- 3.4%
140,000 First USA, Inc., 6.25%, 05/20/98 11,340,000
90,000 Golden Books Financial Trust, 8.75%, 08/20/16 # 4,590,000
150,000 K-Mart Financing Inc., 7.75%, 06/15/16 8,643,750
100,000 Nuevo Financing Inc., 5.75%, Ser. A 4,562,500
-------------
29,136,250
-------------
INSURANCE -- 1.0%
135,000 American Bankers Insurance Group, 6.25%, Ser. B 8,488,125
-------------
UTILITIES -- 1.0%
160,000 Calenergy Capital Trust II, 6.25%, 02/25/12 # 8,220,000
-------------
TOTAL CONVERTIBLE PREFERRED STOCK (COST $47,695,125) 51,827,375
-------------
WARRANTS -- 0.0%
--------------------------------------------------------
HOTELS/OTHER LODGING -- 0.0%
25,297 Homestead Village, Inc., Expires 10/29/97 199,214
(Cost $109,030) -------------
</TABLE>
See notes to financial statements.
26
<PAGE> 57
VISTA SELECT EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE NOTES & BONDS -- 4.1%
--------------------------------------------------------
COMPUTERS/COMPUTER HARDWARE -- 1.3%
$ 10,000,000 Solectron Corp. 6.00%, 03/01/06 # $ 11,042,900
-------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 1.1%
8,000,000 Xilinx Inc. 5.25%, 11/01/02 9,147,520
-------------
ENVIRONMENTAL SERVICES -- 0.2%
1,200,000 USA Waste Services Inc., 4.00%, 02/01/02 1,181,807
-------------
FINANCIAL SERVICES -- 0.5%
2,500,000 American Residential Services, 7.25%, 04/15/04 # 2,450,000
1,272,000 First Financial Management, 5.00%, 12/15/99 2,068,145
-------------
4,518,145
-------------
RETAILING -- 1.0%
7,500,000 Federated Department Stores, 5.00%, 10/01/03 * 8,662,500
-------------
TOTAL CONVERTIBLE CORPORATE NOTES & BONDS 34,552,872
(COST $32,765,863) -------------
U.S. TREASURY OBLIGATIONS -- 7.3%
--------------------------------------------------------
13,000,000 U.S. Treasury Note, 6.88%, 05/15/06 13,109,720
2,500,000 U.S. Treasury Bond, 9.25%, 02/15/16 3,075,775
45,000,000 U.S. Treasury Bond, 7.25%, 08/15/22 45,991,350
-------------
(COST $60,893,508) 62,176,845
------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS 808,898,262
(COST $649,486,218)
------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 5.4%
------------------------------------------------------------------------------------
TIME DEPOSIT -- 5.4%
--------------------------------------------------------
46,151,000 Key Bank, 5.69%, 05/01/97 (Cost $46,151,000) 46,151,000
------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.7% $ 855,049,262
(COST $695,637,218)
------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
27
<PAGE> 58
VISTA SELECT LARGE CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- 95.0%
------------------------------------------------------------------------------------
COMMON STOCK -- 95.0%
----------------------------------------------------------
AEROSPACE -- 1.3%
14,000 Allied-Signal, Inc. $ 1,011,500
16,000 United Technologies, Corp. 1,210,000
-------------
2,221,500
-------------
AGRICULTURAL PRODUCTION/SERVICES -- 2.1%
34,100 Case Corp. 1,888,287
37,000 Deere & Co. 1,702,000
-------------
3,590,287
-------------
AIRLINES -- 1.1%
20,000 AMR Corp. * 1,862,500
-------------
AUTOMOTIVE -- 1.2%
26,788 Chrysler Corp. 803,640
22,400 General Motors 1,296,400
-------------
2,100,040
-------------
BANKING -- 6.9%
21,000 BankBoston Corp. 1,527,750
16,000 Citicorp 1,802,000
20,000 Comerica, Inc. 1,170,000
22,000 First Union Corp. 1,848,000
15,000 Mellon Bank Corp. 1,246,875
32,000 NationsBank Corp. 1,932,000
27,000 Norwest Corp. 1,346,625
15,000 Washington Mutual Savings Bank 740,625
-------------
11,613,875
-------------
BIOTECHNOLOGY -- 0.6%
17,000 Amgen, Inc. * 1,000,875
-------------
BROADCASTING -- 0.6%
70,000 Tele-Communications, TCI Group, Class A * 966,875
-------------
CHEMICALS -- 2.6%
21,200 Dow Chemical Co. 1,799,350
12,700 duPont (EI) deNemours 1,347,788
25,000 Union Carbide Corp. 1,246,875
-------------
4,394,013
-------------
</TABLE>
See notes to financial statements.
28
<PAGE> 59
VISTA SELECT LARGE CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
COMPUTER SOFTWARE -- 3.1%
40,000 Cisco Systems, Inc. * $ 2,070,000
35,900 Computer Associates International 1,866,800
10,000 Microsoft Corp. * 1,215,000
-------------
5,151,800
-------------
COMPUTERS/COMPUTER HARDWARE -- 6.1%
16,800 Compaq Computer Corp. * 1,434,300
58,300 EMC Corp. * 2,120,662
9,000 International Business Machines Corp. 1,446,750
36,000 Seagate Technology, Inc. * 1,651,500
72,600 Sun Microsystems, Inc. * 2,091,788
18,000 Texas Instruments 1,606,500
-------------
10,351,500
-------------
CONSTRUCTION MACHINERY -- 1.3%
24,000 Caterpillar Tractor, Inc. 2,136,000
-------------
CONSUMER PRODUCTS -- 6.5%
40,000 Avon Products, Inc. 2,465,000
16,000 Colgate-Palmolive Co. 1,776,000
25,000 Liz Claiborne, Inc. 1,131,250
58,200 Philip Morris Companies, Inc. 2,291,625
12,500 Procter & Gamble Co. 1,571,875
20,000 Ralston-Ralston Purina Group 1,647,500
-------------
10,883,250
-------------
DIVERSIFIED -- 0.5%
15,000 Dover Corp. 795,000
-------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 2.4%
10,000 General Electric Co. 1,108,750
19,000 Intel Corp. 2,909,375
-------------
4,018,125
-------------
ENTERTAINMENT/LEISURE -- 2.4%
75,000 Carnival Corp., Class A 2,765,625
30,000 Time Warner, Inc. 1,350,000
-------------
4,115,625
-------------
</TABLE>
See notes to financial statements.
29
<PAGE> 60
VISTA SELECT LARGE CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
FINANCIAL SERVICES -- 3.1%
17,500 American Express Co. $ 1,152,813
57,000 Federal Home Loan Mortgage Corp. 1,816,875
26,000 Federal National Mortgage Assoc. 1,069,250
41,000 Green Tree Financial Corp. 1,214,625
-------------
5,253,563
-------------
FOOD/BEVERAGE PRODUCTS -- 4.3%
14,600 Coca-Cola Co. 928,925
23,000 Coca-Cola Enterprises, Inc. 1,388,625
29,500 ConAgra, Inc. 1,699,937
45,000 PepsiCo., Inc. 1,569,375
8,000 Unilever NV, ADR (Netherlands) 1,570,000
-------------
7,156,862
-------------
HEALTH CARE/HEALTH CARE SERVICES -- 3.4%
71,100 Columbia/HCA Healthcare Corp. 2,488,500
106,600 HEALTHSOUTH Corp. * 2,105,350
44,400 Tenet Healthcare Corp. * 1,154,400
-------------
5,748,250
-------------
INSURANCE -- 3.8%
10,000 Aetna Inc. 911,250
42,000 Allstate Corp. 2,751,000
13,200 American International Group 1,696,200
14,000 Progressive Corp. 1,065,750
-------------
6,424,200
-------------
MANUFACTURING -- 3.7%
25,000 Ingersoll-Rand Co. 1,228,125
48,000 Johnson Controls 1,842,000
25,000 Parker Hannifin Corp. 1,243,750
31,800 Tyco International Ltd. 1,939,800
-------------
6,253,675
-------------
MEDIA/ADVERTISING -- 0.3%
10,000 Omnicom Group, Inc. 530,000
-------------
METALS/MINING -- 2.7%
38,900 Aluminum Co. of America (ALCOA) 2,718,138
35,900 Inco, Ltd. 1,148,800
9,000 Phelps Dodge Corp. 690,750
-------------
4,557,688
-------------
</TABLE>
See notes to financial statements.
30
<PAGE> 61
VISTA SELECT LARGE CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
OFFICE/BUSINESS EQUIPMENT -- 0.7%
19,100 Xerox Corp. $ 1,174,650
-------------
OIL & GAS -- 9.8%
19,000 Amoco Corp. 1,588,875
11,900 British Petroleum PLC, ADR (United Kingdom) 1,637,737
40,000 Coastal Corp. 1,900,000
27,000 Halliburton Co. 1,906,875
21,000 Mobil Corp. 2,730,000
20,000 PanEnergy Corp. 885,000
22,000 Phillips Petroleum Co. 866,250
22,500 Texaco, Inc. 2,373,750
60,000 Williams Companies, Inc. 2,632,500
-------------
16,520,987
-------------
PAPER/FOREST PRODUCTS -- 0.9%
23,700 Willamette Industries, Inc. 1,510,875
-------------
PHARMACEUTICALS -- 6.5%
26,000 American Home Products Corp. 1,722,500
36,000 Bristol-Myers Squibb Co. 2,358,000
40,000 Johnson & Johnson 2,450,000
40,000 Pharmacia & Upjohn, Inc. 1,185,000
41,000 SmithKline Beecham PLC, ADR (United Kingdom) 3,305,625
-------------
11,021,125
-------------
PHOTOGRAPHIC EQUIPMENT -- 1.5%
30,000 Eastman Kodak Co. 2,505,000
-------------
PRINTING & PUBLISHING -- 1.3%
49,500 New York Times Company, Class A 2,140,875
-------------
RETAILING -- 4.9%
25,000 American Stores Co. 1,137,500
25,400 Dayton-Hudson Corp. 1,143,000
58,000 Federated Department Stores * 1,972,000
37,100 Gap, Inc. 1,182,563
100,000 Kroger Co. * 2,750,000
-------------
8,185,063
-------------
SHIPPING/TRANSPORTATION -- 0.8%
17,000 Burlington Northern, Inc. 1,338,750
-------------
</TABLE>
See notes to financial statements.
31
<PAGE> 62
VISTA SELECT LARGE CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
TELECOMMUNICATIONS -- 5.4%
60,000 BellSouth Corp. $ 2,670,000
37,200 Frontier Corp. 590,550
26,800 GTE Corp. 1,229,450
18,000 Lucent Technologies, Inc. 1,064,250
27,700 Sprint Corp. 1,215,337
30,000 Telefonaktiebolaget LM Ericsson, Sp, ADR (Sweden) 1,008,750
57,000 WorldCom, Inc. * 1,368,000
-------------
9,146,337
-------------
UTILITIES -- 3.2%
20,000 Carolina Power & Light Co. 680,000
46,000 CMS Energy Corp. 1,460,500
45,000 FPL Group Inc. 2,008,125
43,000 Pinnacle West Capital Corp. 1,225,500
-------------
5,374,125
------------------------------------------------------------------------------------
TOTAL COMMON STOCK (COST $116,523,808) 160,043,290
------------------------------------------------------------------------------------
Principal
Amount
- ------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 5.3%
------------------------------------------------------------------------------------
TIME DEPOSIT -- 5.3%
----------------------------------------------------------
$ 8,929,000 Key Bank, 5.688%, 05/01/97 8,929,000
------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.3% $ 168,972,290
(COST $125,452,808)
------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
32
<PAGE> 63
VISTA SELECT LARGE CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- 98.6%
------------------------------------------------------------------------------------
COMMON STOCK -- 98.6%
----------------------------------------------------------
AIRLINES -- 0.8%
40,000 AMR Corp. * $ 3,725,000
-------------
APPLIANCES & HOUSEHOLD DURABLES -- 2.7%
180,000 Honeywell, Inc. 12,712,500
-------------
BANKING -- 4.6%
200,000 Banc One Corp. 8,475,000
40,000 Citicorp 4,505,000
75,000 First Virginia Banks, Inc. 3,881,250
100,000 Norwest Corp. 4,987,500
-------------
21,848,750
-------------
BUSINESS SERVICES -- 2.3%
100,000 Automatic Data Processing, Inc. 4,525,000
80,800 Avery Dennison Corp. 2,969,400
150,000 CUC International, Inc. 3,168,750
-------------
10,663,150
-------------
CHEMICALS -- 2.3%
90,000 Air Products and Chemicals, Inc. 6,457,500
100,000 Morton International, Inc. 4,187,500
-------------
10,645,000
-------------
COMPUTER SOFTWARE -- 4.9%
100,000 Cisco Systems, Inc. 5,175,000
125,000 Computer Associates International 6,500,000
200,000 First Data Corp. 6,900,000
37,500 Microsoft Corp. * 4,556,250
-------------
23,131,250
-------------
COMPUTERS/COMPUTER HARDWARE -- 8.6%
100,000 3Com Corp. 2,900,000
60,000 Compaq Computer Corp. * 5,122,500
75,000 Dell Computer Corp. * 6,276,563
175,000 EMC Corp. * 6,365,625
150,000 Hewlett-Packard Co. 7,875,000
60,000 International Business Machines Corp. 9,645,000
50,000 U.S. Robotics Corp. 2,531,250
-------------
40,715,938
-------------
</TABLE>
See notes to financial statements.
33
<PAGE> 64
VISTA SELECT LARGE CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
CONSUMER PRODUCTS -- 6.0%
30,000 Gillette Co. $ 2,550,000
180,000 Philip Morris Companies, Inc. 7,087,500
100,000 Procter & Gamble Co. 12,575,000
25,000 Ralston Purina Group 2,059,375
125,000 Service Corp. International 4,281,250
-------------
28,553,125
-------------
DIVERSIFIED -- 6.4%
200,000 Corning Inc. 9,650,000
118,100 Crane Co. 4,413,987
85,000 Dover Corp. 4,505,000
300,000 Federal Signal Corp. 7,312,500
100,000 National Service Industries, Inc. 4,212,500
-------------
30,093,987
-------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 10.0%
17,500 Applied Materials, Inc. 960,313
110,000 Atmel Corp. * 2,736,250
100,000 General Electric Co. 11,087,500
85,000 Grainger (W.W.), Inc. 6,406,875
60,000 Intel Corp. 9,187,500
125,000 Molex Inc., Class A 3,625,000
125,000 Molex, Inc. 3,875,000
150,000 Motorola, Inc. 8,587,500
25,000 National Semiconductor Corp. * 625,000
-------------
47,090,938
-------------
ENTERTAINMENT/LEISURE -- 1.6%
200,000 Carnival Corp., Class A 7,375,000
-------------
FINANCIAL SERVICES -- 2.6%
50,000 American Express Co. 3,293,750
100,000 Charles Schwab Corp. 3,662,500
125,000 Federal Home Loan Mortgage Corp. 3,984,375
50,000 Green Tree Financial Corp. 1,481,250
-------------
12,421,875
-------------
FOOD/BEVERAGE PRODUCTS -- 3.7%
10,000 Coca-Cola Co. 636,250
25,000 CPC International, Inc. 2,065,625
250,000 PepsiCo., Inc. 8,718,750
</TABLE>
See notes to financial statements.
34
<PAGE> 65
VISTA SELECT LARGE CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
FOOD/BEVERAGE PRODUCTS -- (continued)
25,000 Safeway, Inc. * $ 1,115,625
142,840 Sysco Corp. 5,070,820
-------------
17,607,070
-------------
HEALTH CARE/HEALTH CARE SERVICES -- 0.9%
125,000 Columbia/HCA Healthcare Corp. 4,375,000
-------------
INSURANCE -- 5.7%
85,000 American International Group 10,922,500
50,000 General Re Corp. 8,362,500
50,000 MGIC Investment Corp. 4,062,500
50,000 SunAmerica, Inc. 2,300,000
25,000 Travelers, Inc. 1,384,375
-------------
27,031,875
-------------
MACHINERY & ENGINEERING EQUIPMENT -- 0.9%
150,000 Dresser Industries, Inc. 4,481,250
-------------
MANUFACTURING -- 6.0%
160,000 Illinois Tool Works, Inc. 14,620,000
225,000 Tyco International Ltd. 13,725,000
-------------
28,345,000
-------------
MULTI-MEDIA -- 3.6%
100,000 Gannett Co., Inc. 8,725,000
100,000 The Walt Disney Co. 8,200,000
-------------
16,925,000
-------------
OFFICE/BUSINESS EQUIPMENT -- 0.2%
15,000 Xerox Corp. 922,500
-------------
OIL & GAS -- 6.6%
40,000 Amoco Corp. 3,345,000
25,000 Chevron Corp. 1,712,500
125,000 Enron Corp. 4,703,125
105,000 Exxon Corp. 5,945,625
10,000 Halliburton Co. 706,250
60,000 Mobil Corp. 7,800,000
75,000 Tidewater, Inc. 3,009,375
90,000 Williams Companies, Inc. 3,948,750
-------------
31,170,625
-------------
</TABLE>
See notes to financial statements.
35
<PAGE> 66
VISTA SELECT LARGE CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
PHARMACEUTICALS -- 10.4%
175,000 Abbot Laboratories $ 10,675,000
150,000 Johnson & Johnson 9,187,500
40,000 Merck & Company, Inc. 3,620,000
125,000 Pfizer, Inc. 12,000,000
140,000 Warner-Lambert Co. 13,720,000
-------------
49,202,500
-------------
PRINTING & PUBLISHING -- 1.4%
150,000 Tribune Co. 6,581,250
-------------
RETAILING -- 4.2%
35,000 Dayton-Hudson Corp. 1,575,000
100,000 Home Depot, Inc. 5,800,000
100,000 May Department Stores 4,625,000
175,000 Walgreen Co. 8,050,000
-------------
20,050,000
-------------
SHIPPING/TRANSPORTATION -- 0.8%
50,000 Burlington Northern, Inc. 3,937,500
-------------
TELECOMMUNICATIONS -- 1.4%
250,000 Airtouch Communications, Inc. 6,375,000
------------------------------------------------------------------------------------
TOTAL COMMON STOCK (COST $316,057,492) 465,981,083
------------------------------------------------------------------------------------
<CAPTION>
Principal
Amount
------------------------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENTS -- 0.9%
------------------------------------------------------------------------------------
TIME DEPOSIT -- 0.9%
----------------------------------------------------------
$4,306,000 Key Bank, 5.688%, 05/01/97 (Cost $4,306,000) 4,306,000
------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.5% $ 470,287,083
(COST $320,363,492)
------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
36
<PAGE> 67
VISTA SELECT NEW GROWTH OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- 89.5%
------------------------------------------------------------------------------------
COMMON STOCK -- 88.4%
----------------------------------------------------------
ADVERTISING -- 2.1%
20,000 Lamar Advertising Co. $ 395,000
34,500 Outdoor Systems, Inc. 957,375
25,000 Universal Outdoor Holdings, Inc. 681,250
------------
2,033,625
------------
AGRICULTURAL PRODUCTION/SERVICES -- 2.0%
75,000 AGCO Corp. 1,940,625
------------
APPAREL -- 1.0%
25,000 Tommy Hilfiger Corp. 993,750
------------
AUTOMOTIVE -- 0.5%
30,000 Circuit City Stores, Inc., CarMax Group 450,000
------------
BANKING -- 1.9%
17,500 BankBoston Corp. 1,273,125
17,000 Peoples Heritage Financial Group, Inc. 533,375
------------
1,806,500
------------
BIOTECHNOLOGY -- 0.7%
40,000 Pharmaceutical Product Development, Inc. 670,000
------------
BROADCASTING -- 1.8%
22,500 Evergreen Media Corp., Class A 728,437
20,000 Heftel Broadcasting Corp. 1,000,000
------------
1,728,437
------------
BUSINESS SERVICES -- 7.2%
20,000 Abacus Direct Corp. 495,000
15,000 Administaff, Inc. 279,375
41,000 American Residential Services, Inc. 773,875
70,000 Corrections Corporation of America 2,283,750
20,000 Paychex, Inc. 936,250
45,000 PMT Services, Inc. 534,375
20,000 Robert Half International, Inc. 785,000
40,000 Snyder Communications, Inc. 830,000
------------
6,917,625
------------
COMPUTER SOFTWARE -- 11.8%
25,000 Adobe Systems, Inc. 978,125
75,000 American Management Systems, Inc. * 1,856,250
</TABLE>
See notes to financial statements.
37
<PAGE> 68
VISTA SELECT NEW GROWTH OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
COMPUTER SOFTWARE -- (continued)
10,200 Aspen Technologies, Inc. * $ 309,825
10,000 CBT Group PLC, ADR (United Kingdom) 486,250
40,000 E*TRADE Group, Inc. 600,000
45,000 Gartner Group, Inc., Class A 1,181,250
20,000 Hyperion Software Corp. 325,000
10,000 McAfee Associates, Inc. * 557,500
45,000 Memco Software, Ltd. 562,500
80,000 Rational Software Corp. 1,105,000
30,000 Remedy Corp. 971,250
39,815 Sterling Commerce, Inc. * 1,030,213
25,000 Sterling Software, Inc. 762,500
35,000 Vanstar Corp. * 258,125
15,000 Wind River Systems 345,000
------------
11,328,788
------------
COMPUTERS/COMPUTER HARDWARE -- 2.2%
40,000 Applied Magnetics Corp. * 1,005,000
30,000 FORE Systems, Inc. 457,500
15,000 Saville Systems Ireland PLC, ADR (Ireland) 616,875
------------
2,079,375
------------
CONSUMER PRODUCTS/SERVICES -- 7.5%
30,000 Danaher Corp. 1,353,750
50,000 Equity Corp. 1,075,000
80,000 Furniture Brands International, Inc. 1,180,000
70,000 Jones Apparel Group, Inc. * 2,922,500
22,500 Pacific Sunwear of California 703,125
------------
7,234,375
------------
EDUCATIONAL SERVICES -- 1.0%
35,000 Apollo Group, Inc., Class A 940,625
------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 8.9%
20,000 Atmel Corp. * 497,500
35,000 Linear Technology Corp. 1,758,750
15,000 Microchip Technology, Inc. * 468,750
50,000 MRV Communications Inc. 1,031,250
20,000 Teradyne Inc * 655,000
30,000 Uniphase Corp. 1,192,500
</TABLE>
See notes to financial statements.
38
<PAGE> 69
VISTA SELECT NEW GROWTH OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- (continued)
50,000 Waters Corp. $ 1,481,250
30,000 Xilinx, Inc. * 1,470,000
------------
8,555,000
------------
ENTERTAINMENT/LEISURE -- 2.6%
50,000 K2, Inc. 1,306,250
45,000 Regal Cinemas, Inc. 1,226,250
------------
2,532,500
------------
ENVIRONMENTAL SERVICES -- 2.8%
30,000 Newpark Resources, Inc. 1,346,250
40,000 United Waste Systems, Inc. 1,350,000
------------
2,696,250
------------
FINANCIAL SERVICES -- 1.2%
40,000 Green Tree Financial Corp. 1,185,000
------------
FOOD/BEVERAGE PRODUCTS -- 3.1%
40,000 Einstein/Noah Bagel Corp. 737,500
49,875 Safeway, Inc. * 2,225,672
------------
2,963,172
------------
HEALTH CARE/HEALTH CARE SERVICES -- 10.7%
31,700 Alternative Living Services, Inc. 523,050
17,500 Biopsys Medical, Inc. * 358,750
6,575 Biora AB, ADR (Sweden) 119,994
31,000 CRA Managed Care, Inc. 1,092,750
47,500 ESC Medical Systems, Ltd. 1,276,563
30,000 Henry Schein, Inc. 832,500
45,000 Liposome Co., Inc. 998,437
94,500 Omnicare, Inc. 2,303,437
15,000 Perclose, Inc. 371,250
57,500 PhyCor, Inc. * 1,530,938
60,000 Physician Sales & Service, Inc. 870,000
------------
10,277,669
------------
INSURANCE -- 1.9%
10,000 American Bankers Insurance Group, Inc. 528,750
50,000 Nationwide Financial Services, Inc., Class A 1,325,000
------------
1,853,750
------------
MULTI-MEDIA -- 0.6%
50,500 Macrovision Corp. 561,812
------------
</TABLE>
See notes to financial statements.
39
<PAGE> 70
VISTA SELECT NEW GROWTH OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
OIL & GAS -- 2.6%
81,291 Noble Drilling Corp. * $ 1,412,431
30,000 Nuevo Energy Co. 1,031,250
------------
2,443,681
------------
PHARMACEUTICALS -- 2.4%
55,000 Dura Pharmaceuticals, Inc. 1,595,000
25,000 Parexel International Corp. 700,000
------------
2,295,000
------------
RESTAURANTS/FOOD SERVICES -- 2.0%
30,000 Boston Chicken, Inc. 716,250
45,000 Papa John's International, Inc. 1,158,750
------------
1,875,000
------------
RETAILING -- 6.0%
66,000 Borders Group, Inc. 1,402,500
112,500 Hollywood Entertainment Corp. 2,404,688
35,000 PETsMART, Inc. 588,437
15,000 Quality Food Centers, Inc. 601,875
25,000 Starbucks Corp. 746,875
------------
5,744,375
------------
TELECOMMUNICATIONS -- 2.7%
15,000 Ascend Communications, Inc. 686,250
50,000 Aspect Telecommunications Corp. * 887,500
6,600 CIENA Corp. 206,250
30,000 PairFain Technologies, Inc. 780,000
7,700 Yurie Systems, Inc. 74,113
------------
2,634,113
------------
WHOLESALING -- 1.2%
46,500 US Office Products Co. 1,185,750
------------
TOTAL COMMON STOCK (COST $74,041,375) 84,926,797
------------
</TABLE>
See notes to financial statements.
40
<PAGE> 71
VISTA SELECT NEW GROWTH OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE NOTES & BONDS -- 1.1%
----------------------------------------------------------
FINANCIAL SERVICES -- 1.1%
$ 300,000 Alex Brown, Inc., 5.750%, 06/12/01 (Cost $256,031) $ 1,096,313
------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS 86,023,110
(COST $74,297,406)
------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 10.8%
------------------------------------------------------------------------------------
TIME DEPOSIT -- 10.8%
----------------------------------------------------------
10,335,000 Key Bank, 5.688%, 05/01/97 (Cost $10,335,000) 10,335,000
------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.3% $ 96,358,110
(COST $84,632,406)
------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
41
<PAGE> 72
VISTA SELECT SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- 91.2%
------------------------------------------------------------------------------------
COMMON STOCK -- 91.2%
--------------------------------------------------------
AGRICULTURAL PRODUCTION/SERVICES -- 0.7%
268,400 Sylvan, Inc. $ 2,516,250
-------------
APPAREL -- 0.6%
357,000 Worldtex, Inc. 2,320,500
-------------
APPLIANCES & HOUSEHOLD DURABLES -- 1.2%
181,750 Watsco, Inc. 4,521,031
-------------
AUTOMOTIVE -- 1.1%
142,187 Donnelly Corp. 2,115,032
290,000 TBC Corp. 2,175,000
-------------
4,290,032
-------------
BANKING -- 2.4%
102,000 Collective Bancorp, Inc. 4,169,250
66,750 First Virginia Banks, Inc. 3,454,312
54,000 Trustmark Corp. 1,363,500
-------------
8,987,062
-------------
BIOTECHNOLOGY -- 0.4%
93,242 Pharmaceutical Product Development, Inc. 1,561,804
-------------
BROADCASTING -- 0.2%
171,939 Century Communications Corp. 698,503
-------------
BUSINESS SERVICES -- 9.1%
581,187 Concord EFS, Inc. 11,478,443
250,000 Information Resources, Inc. 3,312,500
150,000 McGrath Rentcorp 2,175,000
453,600 NFO Research Inc. 8,278,200
240,000 Unifirst Corp. 4,560,000
258,100 Unitog Co. 5,226,525
-------------
35,030,668
-------------
</TABLE>
See notes to financial statements.
42
<PAGE> 73
VISTA SELECT SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
CHEMICALS -- 6.4%
680,000 Airgas, Inc. $ 10,115,000
481,300 Lydall, Inc. 9,746,325
135,600 Minerals Technologies Inc. 4,762,950
-------------
24,624,275
-------------
COMPUTERS/COMPUTER HARDWARE -- 3.4%
125,000 Adaptec, Inc. * 4,625,000
135,000 SCI Systems, Inc. * 8,336,250
-------------
12,961,250
-------------
CONSTRUCTION MATERIALS -- 3.3%
344,400 Carlisle Companies, Inc. 9,686,250
267,400 LSI Industries, Inc. 2,907,975
-------------
12,594,225
-------------
CONSUMER PRODUCTS -- 8.2%
37,900 Blyth Industries, Inc. 1,497,050
5,000 Chromcragt Revington, Inc. 138,125
165,600 CSS Industries, Inc. 5,361,300
143,437 CUC International, Inc. 3,030,107
203,195 Department 56 Inc. 3,809,906
227,825 Heilig-Meyers Co. 3,417,375
340,900 Interface, Inc. Class A * 7,627,637
150,000 Oil-Dri Corp. of America 2,400,000
33,800 The Scotts Co., Class A 866,125
105,000 Stanhome, Inc. 3,176,250
-------------
31,323,875
-------------
DEFENSE -- 0.2%
74,800 Comptek Research, Inc. 411,400
50,000 United Industrial Corp. 356,250
-------------
767,650
-------------
DISTRIBUTION -- 4.2%
158,200 Applied Industrial Technology, Inc. 5,003,075
60,000 Lawson Products, Inc. 1,357,500
467,100 Richfood Holdings, Inc. 9,517,163
-------------
15,877,738
-------------
DIVERSIFIED -- 0.8%
60,812 Corning Inc. 2,934,179
-------------
</TABLE>
See notes to financial statements.
43
<PAGE> 74
VISTA SELECT SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 8.5%
502,200 Computer Products, Inc. $ 8,600,175
275,000 Medar, Inc. 1,512,500
189,450 Teleflex, Inc. 10,940,737
268,016 Vishay Intertechnology, Inc. 6,465,886
309,100 X-Rite, Inc. 5,100,150
-------------
32,619,448
-------------
ENTERTAINMENT/LEISURE -- 0.2%
53,500 Johnson Worldwide Associates, Inc., Class A 645,344
-------------
ENVIRONMENTAL SERVICES -- 0.6%
176,625 Met-Pro Corp. 2,229,891
-------------
FINANCIAL SERVICES -- 1.3%
564,600 Cash America International, Inc. 5,010,825
-------------
FOOD/BEVERAGE PRODUCTS -- 1.1%
60,000 Dreyer's Grand Ice Cream, Inc. 1,881,562
195,000 J & J Snack foods Corp. 2,486,250
-------------
4,367,812
-------------
HEALTH CARE/HEALTH CARE SERVICES -- 1.5%
65,000 Beckman Instruments, Inc. 2,730,000
20,203 Covance, Inc. 297,994
97,318 Morrison Health Care, Inc. 1,447,605
10,101 Quest Diagnostics Inc. 178,030
62,000 ResMed, Inc. 1,085,000
-------------
5,738,629
-------------
INSURANCE -- 8.1%
67,800 Arthur J. Gallagher & Co. 2,118,750
590,050 HCC Insurance Holdings, Inc. 14,825,007
166,100 Poe & Brown, Inc. 4,360,125
290,100 Trenwick Group, Inc. 9,464,513
-------------
30,768,395
-------------
MANUFACTURING -- 5.6%
194,500 Albany International Corp., Class A 3,914,312
142,500 Duriron Co., Inc. 3,544,687
223,190 Essef Corp. 4,408,002
</TABLE>
See notes to financial statements.
44
<PAGE> 75
VISTA SELECT SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
MANUFACTURING -- (continued)
250,000 Stimsonite Corp. $ 1,406,250
60,000 Tyco International, Ltd. 3,660,000
227,900 Zero Corp. 4,444,050
-------------
21,377,301
-------------
METAL FABRICATION -- 1.9%
195,600 Amcast Industrial Corp. 4,449,900
105,000 Trinity Industries, Inc. 2,756,250
-------------
7,206,150
-------------
PACKAGING -- 1.9%
391,000 Shorewood Packaging Corp. 7,429,000
-------------
PAPER/FOREST PRODUCTS -- 1.3%
286,368 Wausau Paper Mills Co. 5,011,440
-------------
PRINTING & PUBLISHING -- 5.0%
304,600 Banta Corp. 7,691,150
84,000 Bowne & Co., Inc. 2,226,000
292,800 Devon Group, Inc. 8,271,600
100,000 Golden Books Family Entertainment, Inc. 825,000
-------------
19,013,750
-------------
RESTAURANTS/FOOD SERVICES -- 3.0%
72,989 Morrison Fresh Cooking, Inc. 346,697
145,978 Ruby Tuesday, Inc. 2,883,066
298,000 Sbarro, Inc. 8,418,500
-------------
11,648,263
-------------
RETAILING -- 1.6%
300,000 Cato Corp., Class A 1,387,500
34,202 J.C. Penney Company, Inc. 1,633,146
240,000 Viking Office Products, Inc. 3,270,000
-------------
6,290,646
-------------
RUBBER & PLASTICS -- 3.9%
477,650 Hanna (M.A.) Co. 9,970,944
282,088 Myers Industries, Inc. 4,936,540
-------------
14,907,484
-------------
SHIPBUILDING -- 0.2%
36,540 Halter Marine Group, Inc. * 717,098
-------------
</TABLE>
See notes to financial statements.
45
<PAGE> 76
VISTA SELECT SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
SHIPPING/TRANSPORTATION -- 1.5%
210,200 M.S. Carriers, Inc. $ 4,151,450
55,000 Swift Transportation Co., Inc. 1,567,500
-------------
5,718,950
-------------
TELECOMMUNICATIONS -- 1.8%
286,696 WorldCom, Inc. 6,880,704
------------------------------------------------------------------------------------
TOTAL COMMON STOCK (COST $218,090,363) 348,590,172
------------------------------------------------------------------------------------
Principal
Amount
- ------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 8.6%
------------------------------------------------------------------------------------
TIME DEPOSIT -- 8.6%
--------------------------------------------------------
$ 33,022,000 Key Bank, 5.68%, 05/01/97 (Cost $33,022,000) 33,022,000
- ------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.8% $ 381,612,172
(COST $251,112,363)
- ------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
46
<PAGE> 77
VISTA SELECT INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
<C> <S> <C>
- ------------------------------------------------------------------------------------
<CAPTION>
<C> <S> <C>
COMMON STOCK -- 88.2%
------------------------------------------------------------------------------------
ARGENTINA -- 0.0%
-----------------------------------------------------------
Banking -- 0.0%
1 Banco Frances del Rio de la Plata SA, ADS $ 15
------------
AUSTRALIA -- 1.6%
-----------------------------------------------------------
Banking -- 0.2%
51,000 Commonwealth Bank of Australia 555,298
Broadcasting -- 0.3%
178,000 News Corp., Ltd. 822,265
Diversified -- 0.4%
595,000 Futuris Corp., Ltd. 897,592
Entertainment/Leisure -- 0.2%
110,000 TABCORP Holdings, Ltd. 544,683
Food/Beverage Products -- 0.2%
173,000 Foster's Brewing Group, Ltd. 356,989
Multi-Media -- 0.1%
53,700 Publishing & Broadcasting, Ltd. 284,163
Oil & Gas -- 0.2%
420,000 Energy Equity Corp., Ltd. * 413,642
------------
TOTAL AUSTRALIA 3,874,632
------------
AUSTRIA -- 2.1%
-----------------------------------------------------------
Oil & Gas -- 1.1%
24,416 OMV AG 2,664,466
Steel -- 1.0%
32,758 Boehler -- Uddeholm AG 2,362,600
------------
TOTAL AUSTRIA 5,027,066
------------
BELGIUM -- 0.1%
-----------------------------------------------------------
Food/Beverage Products -- 0.1%
344 Colruyt SA 144,883
------------
BERMUDA -- 0.2%
-----------------------------------------------------------
Diversified -- 0.2%
74,000 Jardine Matheson Holdings, Ltd. 407,000
------------
</TABLE>
See notes to financial statements.
47
<PAGE> 78
VISTA SELECT INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- (CONTINUED)
------------------------------------------------------------------------------------
BRAZIL -- 1.3%
-----------------------------------------------------------
Telecommunications -- 0.6%
13,000 Telecomunicacoes Brasileiras SA, ADR $ 1,491,750
Utilities -- 0.7%
70,000 Centrais Electricas Brasileiras SA-Electrobras, ADR 1,635,571
------------
TOTAL BRAZIL 3,127,321
------------
CHILE -- 0.8%
-----------------------------------------------------------
Food/Beverage Products -- 0.8%
90,000 Compania Cervecerias Unidas SA, ADR 2,002,500
------------
CHINA -- 0.6%
-----------------------------------------------------------
Automotive -- 0.3%
1,132,000 Qingling Motors Co., Ltd., H Shares 621,053
Shipping/Transportation -- 0.3%
1,400,000 Guangshen Railway Co., Ltd., H Shares 668,688
------------
TOTAL CHINA 1,289,741
------------
FRANCE -- 10.0%
-----------------------------------------------------------
Automotive -- 0.6%
9,594 Equipements et Composants pour l'Industries Automobile 1,509,035
Banking -- 0.7%
40,300 Banque Nationale de Paris 1,719,338
Computer Services -- 2.0%
46,400 Cap Gemini Sogeti SA * 2,810,376
16,679 Group Axime * 2,006,153
Consumer Products -- 0.8%
83,000 Moulinex * 1,918,435
Financial Services -- 1.4%
29,068 Cetelem Group 3,386,734
Food/Beverage Products -- 0.9%
79,700 Remy Cointreau 2,049,727
Insurance -- 0.7%
53,847 AGF (Assurances Generales de France) 1,752,038
Pharmaceuticals -- 0.8%
56,000 Rhone-Poulenc, Class A 1,883,499
Tire & Rubber -- 1.0%
43,300 Michelin (CGDE), B Shares 2,419,333
</TABLE>
See notes to financial statements.
48
<PAGE> 79
VISTA SELECT INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- (CONTINUED)
------------------------------------------------------------------------------------
FRANCE -- (continued)
Utilities -- 1.1%
19,097 Compagnie Generale des Eaux $ 2,660,190
------------
TOTAL FRANCE 24,114,858
------------
GERMANY -- 7.1%
-----------------------------------------------------------
Automotive -- 1.5%
49,913 Daimler-Benz AG * 3,689,434
Capital Goods -- 0.7%
4,300 Mannesmann AG 1,691,031
Chemicals -- 1.7%
104,160 BASF AG 3,995,176
Consumer Products -- 2.1%
23,022 Adidas AG 2,386,402
81,083 Puma AG 2,757,917
Health Care/Health Care Services -- 1.1%
31,000 Fresenius Medical Care AG * 2,715,710
------------
TOTAL GERMANY 17,235,670
------------
HONG KONG -- 5.3%
-----------------------------------------------------------
Banking -- 0.2%
104,000 Dao Heng Bank Group, Ltd. 494,054
Diversified -- 1.7%
137,000 Citic Pacific, Ltd. 741,017
534,000 First Pacific Company, Ltd. 637,641
740,000 Guangdong Investments, Ltd. 692,569
138,000 Hutchison Whampoa 1,024,331
122,000 Swire Pacific, Ltd. Class A 941,004
Financial Services -- 1.1%
155,000 Guoco Group, Ltd. 736,331
76,235 HSBC Holdings PLC 1,928,875
Real Estate -- 2.3%
75,000 Cheung Kong Holdings, Ltd. 658,360
316,000 China Resources Enterprises, Ltd. 872,960
184 Henderson China Holding, Ltd. 317
78,000 Henderson Land Development Company, Ltd. 657,005
588,800 HKR International, Ltd. 725,880
180,000 Hongkong Land Holdings, Ltd. 374,400
220,000 Hysan Development Co., Ltd. 607,757
</TABLE>
See notes to financial statements.
49
<PAGE> 80
VISTA SELECT INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- (CONTINUED)
------------------------------------------------------------------------------------
HONG KONG -- (continued)
170,000 New World Development Company, Ltd. $ 980,957
348,000 Wheelock & Co., Ltd. 723,267
------------
TOTAL HONG KONG 12,796,725
------------
INDIA -- 0.0%
-----------------------------------------------------------
Metals/Mining -- 0.0%
450 Hindalco Industries Ltd, GDR 14,625
------------
INDONESIA -- 0.2%
-----------------------------------------------------------
Automotive -- 0.0%
8,500 PT Astra International (Foreign) 31,132
Consumer Products -- 0.1%
21,000 PT Gudang Garam (Foreign) 88,148
39,500 PT Hanjaya Mandala Sampoerna (Foreign) 158,894
Metals/Mining -- 0.0%
23,000 PT Tambang Timah (Foreign) 37,860
Telecommunications -- 0.1%
194,000 PT Telekomunikasi Indonesia 281,420
------------
TOTAL INDONESIA 597,454
------------
IRELAND -- 0.7%
-----------------------------------------------------------
Insurance -- 0.7%
315,477 Irish Life PLC 1,563,118
------------
ITALY -- 3.5%
-----------------------------------------------------------
Banking -- 0.5%
844,000 Credito Italiano SpA 1,183,264
Machinery & Engineering Equipment -- 0.6%
213,700 Danieli & Co. 1,506,121
Retailing -- 1.2%
42,500 Gucci Group NV (NY Registered Shares) * 2,948,438
Telecommunications -- 1.2%
891,133 Telecom Italia Mobile SpA 2,803,213
------------
TOTAL ITALY 8,441,036
------------
JAPAN -- 17.3%
-----------------------------------------------------------
Automotive -- 2.7%
82,000 Bridgestone Corp. 1,744,543
63,000 Denso Corp. 1,434,638
163,000 Mazda Motor * 458,522
222,000 Mitsubishi Motors Corp. 1,539,358
</TABLE>
See notes to financial statements.
50
<PAGE> 81
VISTA SELECT INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- (CONTINUED)
------------------------------------------------------------------------------------
JAPAN -- (continued)
80,000 Nippon Express Co., Ltd. $ 551,572
29,000 Toyota Motor Corp. 840,911
Banking -- 0.5%
25,000 Bank of Tokyo-Mitsubishi 395,950
43,000 Mitsubishi Trust & Banking Corp. 460,799
50,000 Sumitomo Trust & Banking 413,679
Business Services -- 0.6%
129,000 Ricoh Corp., Ltd. 1,534,867
Chemicals -- 0.5%
58,000 Shin-Etsu Chemical Co., Ltd. 1,169,963
Consumer Products -- 0.8%
38,000 Aiwa Co., Ltd. 655,740
28,000 Sony Chemicals 397,132
10,500 Sony Corp. 764,479
Electronics/Electrical Equipment -- 6.2%
189,000 Fujitsu, Ltd. 1,965,802
20,800 Hirose Electronics Co., Ltd. 1,137,436
156,000 Hitachi, Ltd. 1,413,600
42,000 Hitachi Maxell, Ltd. 883,618
17,930 Keyence Corp. 2,189,859
48,000 Matsushita Communication Industries 1,240,564
60,000 Matsushita Electric Industrial Co., Ltd. 959,735
14,000 Murata Manufacturing Co., Ltd. 521,787
164,000 NEC Corp. 2,002,994
17,900 SMC Corp. 1,311,717
218,000 Toshiba Corp. 1,223,040
Entertainment/Leisure -- 0.7%
42,000 Shimano Inc. 708,218
48,000 Yamaha Corp. 968,245
Financial Services -- 0.9%
31,600 Acom Company, Ltd. 1,289,796
21,000 Promise Co., Ltd. 868,726
Machinery & Engineering Equipment -- 1.3%
38,000 Fuji Machine Manufacturing Co. 1,071,941
39,000 Komatsu, Ltd. 285,178
230,000 Mitsubishi Heavy Industries, Ltd. 1,518,714
4,300 Shima Seiki Manufacturing, Ltd. 177,543
Pharmaceuticals -- 0.5%
14,000 Sankyo Co., Ltd. 375,069
42,000 Yamanouchi Pharmaceutical Co., Ltd. 896,856
</TABLE>
See notes to financial statements.
51
<PAGE> 82
VISTA SELECT INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- (CONTINUED)
------------------------------------------------------------------------------------
JAPAN -- (continued)
Photographic Equipment -- 0.7%
43,000 Fuji Photo Film $ 1,643,290
Real Estate -- 0.5%
35,000 Hankyu Realty 244,071
70,000 Mitsubishi Estate Co., Ltd. 882,515
5,000 Tachihi Enterprise Co., Ltd. 121,346
Retailing -- 1.0%
36,000 Ito-Yokado Co., Ltd. 1,727,523
49,000 Marui Co., Ltd. 806,950
Telecommunications -- 0.3%
90 Nippon Telegraph & Telephone Corp. 634,702
Warehousing -- 0.1%
74,000 Sumitomo Warehouse 364,431
------------
TOTAL JAPAN 41,797,419
------------
MALAYSIA -- 2.1%
-----------------------------------------------------------
Agricultural Production/Services -- 0.4%
288,000 Kumpulan Guthrie Bhd. 445,198
131,000 Malakoff Bhd. 521,916
Automotive -- 0.2%
47,000 Perusahaan Otomobil Nasional Bhd. 280,878
144,000 Tractors Malaysia Holdings Bhd. 248,990
Construction -- 0.6%
230,000 Sunway Building Technology Bhd. * 829,288
362,750 Sungei Way Holdings Bhd. 831,007
Construction Materials -- 0.1%
93,000 Kedah Cement Holdings, Bhd. 144,503
Diversified -- 0.5%
344,000 Renong Bhd. 471,461
88,000 United Engineers, Ltd. 624,068
Paper/Forest Products -- 0.2%
120,000 Malaysian Pacific Industries Bhd. 478,091
Utilities -- 0.1%
62,000 Tenaga Nasional Bhd. 286,536
------------
TOTAL MALAYSIA 5,161,936
------------
MEXICO -- 1.7%
-----------------------------------------------------------
Diversified -- 0.9%
404,041 ALFA, SA de CV, Class A 2,184,055
</TABLE>
See notes to financial statements.
52
<PAGE> 83
VISTA SELECT INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- (CONTINUED)
------------------------------------------------------------------------------------
MEXICO -- (continued)
Financial Services -- 0.4%
450,000 Grupo Financiero Banamex Accival, SA de CV (Banacci), $ 971,612
Ser. B *
Home Building Construction -- 0.4%
56,200 Corporacion GEO, SA de CV, Ser. B, ADR * 1,025,650
------------
TOTAL MEXICO 4,181,317
------------
NETHERLANDS -- 3.8%
-----------------------------------------------------------
Chemicals -- 0.5%
10,346 Akzo Nobel 1,333,010
Computer Software -- 1.3%
59,000 Baan Company, NV * 3,092,181
Food/Beverage Products -- 1.0%
41,384 CSM NV, N.R. Certificate 2,377,113
Printing & Publishing -- 1.0%
114,733 Verenigde Nederlandse Uitgeversbedrijvan Verenigd Bezit 2,373,453
(VNU) ------------
TOTAL NETHERLANDS 9,175,757
------------
PHILIPPINES -- 0.0%
-----------------------------------------------------------
Real Estate -- 0.0%
62,100 Filinvest Land, Inc. * 14,601
Construction -- 0.0%
98,200 DMCI Holdings Inc.* 50,273
------------
TOTAL PHILIPPINES 64,874
------------
PORTUGAL -- 2.5%
-----------------------------------------------------------
Telecommunications -- 2.5%
75,231 Portugal Telecom, SA 2,773,343
37,800 Telecel-Comunicacaoes Pessoais, SA * 3,256,876
------------
TOTAL PORTUGAL 6,030,219
------------
SINGAPORE -- 1.2%
-----------------------------------------------------------
Banking -- 0.4%
46,000 Development Bank of Singapore, Ltd. (Foreign) 547,044
33,000 United Overseas Bank, Ltd. (Foreign) 310,305
Food/Beverage Products -- 0.2%
66,960 Fraser & Neave, Ltd. 486,116
</TABLE>
See notes to financial statements.
53
<PAGE> 84
VISTA SELECT INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- (CONTINUED)
------------------------------------------------------------------------------------
SINGAPORE -- (continued)
Real Estate -- 0.6%
55,000 City Developments, Ltd. $ 444,922
245,000 DBS Land, Ltd. 792,771
68,000 Singapore Land, Ltd. 317,357
------------
TOTAL SINGAPORE 2,898,515
------------
SPAIN -- 1.4%
-----------------------------------------------------------
Banking -- 1.4%
46,000 Banco Santander SA 3,463,974
------------
SWEDEN -- 1.5%
-----------------------------------------------------------
Banking -- 1.0%
224,000 Skandinaviska Enskilda Banken, Class A 2,284,114
4,800 Sparbanken Sverige AB, Swedbank, A Shares 85,654
Steel -- 0.5%
128,800 Avesta Sheffield AB 1,280,531
------------
TOTAL SWEDEN 3,650,299
------------
SWITZERLAND -- 5.7%
-----------------------------------------------------------
Engineering Services -- 1.2%
2,300 ABB AG * 2,786,342
Health Care/Health Care Services -- 3.3%
6,110 Novartis AG (Registered) 8,053,022
Pharmaceuticals -- 1.2%
2,100 Ares-Serono Group, Class B 2,819,123
------------
TOTAL SWITZERLAND 13,658,487
------------
THAILAND -- 0.2%
-----------------------------------------------------------
Banking -- 0.0%
18,000 Thai Farmers Bank Public Co., Ltd 78,545
Metals/Mining -- 0.1%
2,500 Banpu Public Co., Ltd. (Local) 38,851
7,000 Banpu Public Co., Ltd. (Foreign) 113,607
Oil & Gas -- 0.1%
21,900 PTT Exploration and Production Public Co., Ltd. 279,984
(Foreign) ------------
TOTAL THAILAND 510,987
------------
UNITED KINGDOM -- 17.3%
-----------------------------------------------------------
Aerospace -- 0.5%
52,503 British Aerospace PLC 1,116,859
</TABLE>
See notes to financial statements.
54
<PAGE> 85
VISTA SELECT INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- (CONTINUED)
------------------------------------------------------------------------------------
UNITED KINGDON -- (continued)
Business Services -- 0.6%
120,000 Delphi Group PLC $ 1,547,960
Construction Materials -- 1.6%
250,000 Blue Circle Industries PLC 1,699,673
310,000 Caradon PLC 1,249,970
141,066 Meyer International PLC 999,121
Diversified -- 2.7%
729,941 Cookson Group PLC 2,564,231
228,926 Granada Group PLC 3,305,952
94,210 McKechnie Group PLC 755,154
Engineering Services -- 1.1%
830,000 APV PLC 1,171,679
682,857 Senior Engineering Group PLC 1,440,405
Food/Beverage Products -- 0.8%
280,280 Allied Domecq PLC 1,985,125
Hotels/Other Lodging -- 1.0%
166,900 Greenalls Group PLC 1,352,705
447,062 Jarvis Hotels PLC 1,113,493
Multi-Media -- 1.1%
325,000 Carlton Communications PLC 2,663,092
Oil & Gas -- 1.2%
68,000 British-Borneo Petro Syndicate PLC 1,417,828
80,444 Shell Transport & Trading PLC 1,422,760
Pharmaceuticals -- 1.3%
157,300 Glaxo Wellcome PLC 3,096,000
Real Estate -- 0.4%
680,243 TBI PLC 883,010
Retailing -- 1.6%
128,285 Boots Company, PLC 1,440,434
225,763 Great Universal Stores PLC 2,337,141
Shipping/Transportation -- 0.7%
195,212 British Airport Authority PLC 1,620,181
Telecommunications -- 1.7%
339,500 British Telecommunications PLC 2,489,945
370,000 Vodafone Group PLC 1,653,997
</TABLE>
See notes to financial statements.
55
<PAGE> 86
VISTA SELECT INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- (CONTINUED)
------------------------------------------------------------------------------------
UNITED KINGDON -- (continued)
Utilities -- 1.0%
287,085 National Power PLC $ 2,485,172
------------
TOTAL UNITED KINGDOM 41,811,887
------------------------------------------------------------------------------------
TOTAL COMMON STOCK 213,042,315
(COST $200,931,139)
------------------------------------------------------------------------------------
RIGHTS -- 0.0%
------------------------------------------------------------------------------------
GERMANY -- 0.0%
-----------------------------------------------------------
Automotive -- 0.0%
49,913 Daimler-Benz AG, Expires 05/13/97 (Cost $0) 4,324
------------------------------------------------------------------------------------
WARRANTS -- 0.0%
------------------------------------------------------------------------------------
MALAYSIA -- 0.0%
-----------------------------------------------------------
Construction -- 0.0%
40,000 Sunway Building Technology, Bhd., Expires 07/30/01, 78,088
5.50% (Cost $0)
------------------------------------------------------------------------------------
<CAPTION>
Principal
Amount
- ------------------------------------------------------------------------------------
<C> <S> <C>
CORPORATE NOTES & BONDS -- 0.1%
------------------------------------------------------------------------------------
FRANCE -- 0.1%
-----------------------------------------------------------
Banking -- 0.1%
$ 80,000 Societe Generale, 3.50%, 01/01/00 (FRF) 108,504
------------
MALAYSIA -- 0.0%
-----------------------------------------------------------
Construction -- 0.0%
100,000 Sunway Building Technology, Bhd., Loan Stock 3.00% 33,068
(MYR) ------------
TOTAL CORPORATE NOTES & BONDS (COST $54,251) 141,572
------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 88.3% $213,266,299
(COST $200,985,390)
------------------------------------------------------------------------------------
# = Security may only be sold to qualified institutional buyers.
* = Non income producing security.
ADR = American Depository Receipt.
ADS = American Depository Shares.
GDR = Global Depository Receipt.
FRF = French Franc.
MYR = Malaysian Ringgit.
</TABLE>
See notes to financial statements.
56
<PAGE> 87
VISTA MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Select Vista Select Vista Select
Vista Select Equity Large Cap Large Cap
Balanced Income Equity Growth
Fund Fund Fund Fund
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value (Note 1)......... $ 175,737,753 $ 855,049,262 $ 168,972,290 $ 470,287,083
Cash............................................. 1,048,769 -- 15,716 616
Foreign Currency (Cost $3,173,573)............... -- -- -- --
Receivables:
Investment securities sold..................... -- 362,213 419,659 3,495,506
Open forward currency contracts................ -- -- -- --
Interest and dividends......................... 1,482,604 3,091,331 210,166 239,580
Fund shares sold............................... 25,000 -- 178,012 307,289
Expense reimbursement from Distributor......... 17,148 26,717 13,069 20,024
Unamortized organization costs (Note 1)........... 20,346 66,541 18,668 31,730
Other assets...................................... 15,710 68,871 17,104 38,491
-------------- -------------- ------------ -----------
Total Assets............................... 178,347,330 858,664,935 169,844,684 474,420,319
-------------- -------------- ------------ -----------
LIABILITIES:
Payable for investment securities purchased...... -- 7,441,255 -- 1,528,875
Payable for open forward currency contracts...... -- -- -- --
Payable for Fund shares redeemed................. 132,027 134,486 1,139,390 18,100
Payable to custodian............................. -- 103,658 -- --
Dividends payable................................ 554,653 1,749,988 220,940 261,936
Other liabilities................................ 9,447 26,717 22,133 3,595
Accrued liabilities: (Note 2)
Custodian...................................... 12,148 26,717 13,069 20,024
Organization Costs Payable..................... 4,717 20,674 5,088 11,454
Other.......................................... 28,965 109,380 28,451 57,960
-------------- -------------- ------------ -----------
Total Liabilities.......................... 741,957 9,612,875 1,429,071 1,901,944
-------------- -------------- ------------ -----------
<CAPTION>
Vista Select Vista Select Vista Select
New Growth Small Cap International
Opportunities Value Equity
Fund Fund Fund
------------ ------------- -------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value (Note 1)......... $ 96,358,110 $ 381,612,172 $ 213,266,299
Cash............................................. 20,859 6,534 27,725,500
Foreign Currency (Cost $3,173,573)............... -- -- 3,172,808
Receivables:
Investment securities sold..................... 485,009 164,166 7,903,881
Open forward currency contracts................ -- -- 725,640
Interest and dividends......................... 56,591 80,742 982,619
Fund shares sold............................... 30,000 342,178 859,627
Expense reimbursement from Distributor......... 7,816 17,781 49,954
Unamortized organization costs (Note 1)........... 13,414 29,322 17,573
Other assets...................................... 10,477 34,721 14,769
------------- ------------ ------------
Total Assets............................... 96,982,276 382,287,616 254,718,670
------------ ------------ ------------
LIABILITIES:
Payable for investment securities purchased...... 658,671 -- 12,715,185
Payable for open forward currency contracts...... -- -- 143,896
Payable for Fund shares redeemed................. 157,499 -- 96,202
Payable to custodian............................. -- -- --
Dividends payable................................ -- -- --
Other liabilities................................ 4,948 3,163 171,112
Accrued liabilities: (Note 2)
Custodian...................................... 7,816 17,781 49,954
Organization Costs Payable..................... 3,206 10,345 5,808
Other.......................................... 33,088 52,390 81,792
------------- ----------- -----------
Total Liabilities.......................... 865,228 83,679 13,263,949
------------- ----------- -----------
</TABLE>
57
<PAGE> 88
VISTA MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Select Vista Select Vista Select
Vista Select Equity Large Cap Large Cap
Balanced Income Equity Growth
Fund Fund Fund Fund
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
NET ASSETS:
Paid in capital.................................. $ 136,644,473 $ 593,206,455 $ 90,839,882 $ 288,672,799
Accumulated undistributed net investment income.. 924 1,328 237 (1,536)
Accumulated undistributed net realized gain
(loss) on investment transactions.............. 17,445,624 96,432,233 34,056,012 33,923,522
Net unrealized appreciation/depreciation of
investments and futures........................ 23,514,352 159,412,044 43,519,482 149,923,590
-------------- -------------- ------------ -----------
Net Assets:....................................... $ 177,605,373 $ 849,052,060 $ 168,415,613 $ 472,518,375
============== ============== ============ ===========
Shares of beneficial interest outstanding ($.001
par value; unlimited number of shares
authorized):..................................... 5,714,162 9,460,345 383,793 5,824,492
Net asset value* and offering price per share*... $ 31.08 $ 89.75 $ 438.82 $ 81.13
Cost of Investments............................... $ 152,223,401 $ 695,637,218 $ 125,452,808 $ 320,363,492
============== ============== ============ ===========
<CAPTION>
Vista Select Vista Select Vista Select
New Growth Small Cap International
Opportunities Value Equity
Fund Fund Fund
------------ ------------- -------------
<S> <C> <C> <C>
NET ASSETS:
Paid in capital.................................. $ 78,547,744 $ 247,557,212 $ 220,582,295
Accumulated undistributed net investment income.. 43,984 364,712 4,687,480
Accumulated undistributed net realized gain
(loss) on investment transactions.............. 5,799,616 3,782,204 3,330,977
Net unrealized appreciation/depreciation of
investments and futures........................ 11,725,704 130,499,809 12,853,969
------------ ---------- -----------
Net Assets:....................................... $ 96,117,048 $ 382,203,937 $ 241,454,721
============ ========== ===========
Shares of beneficial interest outstanding ($.001
par value; unlimited number of shares
authorized):..................................... 184,912 7,777,005 1,377,768
Net asset value* and offering price per share*... $ 519.80 $ 49.15 $ 175.25
Cost of Investments............................... $ 84,632,406 $ 251,112,363 $ 200,985,390
============ ========== ===========
</TABLE>
- ---------------
* Net assets/shares outstanding
See notes to financial statements.
58
<PAGE> 89
VISTA MUTUAL FUNDS
STATEMENT OF OPERATIONS For the period January 1, 1997* through April, 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Select Vista Select Vista Select
Vista Select Equity Large Cap Large Cap
Balanced Income Equity Growth
Fund Fund Fund Fund
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend............................................... $ 552,117 $ 5,818,282 $ 993,389 $ 1,603,686
Interest............................................... 1,721,573 1,546,346 110,237 102,413
Foreign taxes withheld................................. (43) (24,203) (2,379) --
----------- ------------ ----------- ------------
Total investment income........................... 2,273,647 7,340,425 1,101,247 1,706,099
----------- ------------ ----------- ------------
EXPENSES: (Note 2)
Administration fees.................................... 90,169 422,572 93,531 225,521
Investment Advisory fees............................... 300,561 1,126,859 249,414 601,390
Custodian fees......................................... 24,296 53,434 26,138 40,049
Printing and postage................................... 1,233 3,260 1,644 1,644
Professional fees...................................... 9,064 17,079 4,131 11,771
Transfer agent fees.................................... 4,560 14,086 4,865 7,517
Trustees fees and expenses............................. 3,006 14,086 3,118 7,517
Amortization of organization costs (Note 1)............ 1,338 4,374 1,228 2,087
Other.................................................. 2,630 17,543 5,590 6,037
----------- ------------ ----------- ------------
Total expenses.................................... 436,857 1,673,293 389,659 903,533
----------- ------------ ----------- ------------
Less amounts waived (Note 2E).......................... 390,730 1,549,431 342,945 826,911
Less expenses borne by the Distributor................. 29,296 53,434 26,138 45,049
----------- ------------ ----------- ------------
Net expenses......................................... 16,831 70,428 20,576 31,573
----------- ------------ ----------- ------------
Net investment income................................ 2,256,816 7,269,997 1,080,671 1,674,526
----------- ------------ ----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments.......................................... 17,445,624 96,432,233 34,056,012 33,923,522
Foreign currency transactions........................ -- -- -- --
Change in net unrealized appreciation/depreciation on:
Investments.......................................... (14,858,485) (49,473,722) (19,480,512) (16,283,428)
Foreign currency transactions........................ -- -- -- --
----------- ------------ ----------- ------------
Net realized and unrealized gain (loss) on
investments.......................................... 2,587,139 46,958,511 14,575,500 17,640,094
----------- ------------ ----------- ------------
Net increase in net assets from operations............. $ 4,843,955 $ 54,228,508 $ 15,656,171 $ 19,314,620
=========== ============ =========== ============
<CAPTION>
Vista Select Vista Select Vista Select
New Growth Small Cap International
Opportunities Value Equity
Fund Fund Fund
------------- ------------ -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend............................................... $ 40,935 $ 1,037,731 $ 1,237,936
Interest............................................... 307,267 557,106 240,265
Foreign taxes withheld................................. -- -- (168,081)
----------- ------------ -----------
Total investment income........................... 348,202 1,594,837 1,310,120
----------- ------------ -----------
EXPENSES: (Note 2)
Administration fees.................................... 56,441 192,333 114,622
Investment Advisory fees............................... 244,578 833,443 764,146
Custodian fees......................................... 15,632 35,562 99,908
Printing and postage................................... 1,644 1,644 2,452
Professional fees...................................... 8,950 11,107 11,320
Transfer agent fees.................................... 5,644 5,155 7,641
Trustees fees and expenses............................. 1,881 6,411 3,821
Amortization of organization costs (Note 1)............ 882 1,928 1,172
Other.................................................. 9,971 6,966 56,040
----------- ------------ -----------
Total expenses.................................... 345,623 1,094,549 1,061,122
----------- ------------ -----------
Less amounts waived (Note 2E).......................... 301,020 1,025,777 878,768
Less expenses borne by the Distributor................. 15,632 40,562 99,908
----------- ------------ -----------
Net expenses......................................... 28,971 28,210 82,446
----------- ------------ -----------
Net investment income................................ 319,231 1,566,627 1,227,674
----------- ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments.......................................... 5,799,616 3,782,204 3,330,977
Foreign currency transactions........................ -- -- 3,989,795
Change in net unrealized appreciation/depreciation on:
Investments.......................................... (15,631,381) (25,551,105) (1,736,931)
Foreign currency transactions........................ -- -- (826,006)
----------- ------------ -----------
Net realized and unrealized gain (loss) on
investments.......................................... (9,831,765) (21,768,901) 4,757,835
----------- ------------ -----------
Net increase in net assets from operations............. ($ 9,512,534) ($20,202,274) $ 5,985,509
=========== ============ ===========
</TABLE>
- ---------------
* Funds commenced operations on January 1, 1997.
See notes to financial statements.
59
<PAGE> 90
VISTA MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS For the period January 1, 1997* through
April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Select Vista Select Vista Select Vista Select
Vista Select Equity Large Cap Large Cap New Growth
Balanced Income Equity Growth Opportunities
Fund Fund Fund Fund Fund
------------- ------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income.................... $ 2,256,816 $ 7,269,997 $ 1,080,671 $ 1,674,526 $ 319,231
Net realized gain on investments and
futures transactions................... 17,445,624 96,432,233 34,056,012 33,923,522 5,799,616
Change in net unrealized appreciation on
investments and futures................ (14,858,485) (49,473,721) (19,480,512) (16,283,428) (15,631,381)
------------- ------------- ------------- ------------- ------------
Increase in net assets from operations... 4,843,955 54,228,509 15,656,171 19,314,620 (9,512,534)
------------- ------------- ------------- ------------- ------------
Distributions to shareholders from net
investment income........................ (2,255,892) (7,268,669) (1,080,434) (1,676,062) (275,247)
Increase from capital share transactions
(Note 6)................................. 175,017,310 802,092,220 153,839,876 454,879,817 105,904,829
------------- ------------- ------------- ------------- ------------
Total increase in net assets....... 177,605,373 849,052,060 168,415,613 472,518,375 96,117,048
NET ASSETS:
Beginning of period...................... -- -- -- -- --
------------- ------------- ------------- ------------- ------------
End of period............................ $ 177,605,373 $ 849,052,060 $ 168,415,613 $ 472,518,375 $ 96,117,048
============= ============= ============= ============= ============
<CAPTION>
Vista Select Vista Select
Small Cap International
Value Equity
Fund Fund
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income.................... $ 1,566,627 $ 1,227,674
Net realized gain on investments and
futures transactions................... 3,782,204 7,320,772
Change in net unrealized appreciation on
investments and futures................ (25,551,105) (2,562,936)
------------- -------------
Increase in net assets from operations... (20,202,274) 5,985,510
------------- -------------
Distributions to shareholders from net
investment income........................ (1,201,915) (529,988)
Increase from capital share transactions
(Note 6)................................. 403,608,126 235,999,199
------------- -------------
Total increase in net assets....... 382,203,937 241,454,721
NET ASSETS:
Beginning of period...................... -- --
------------- -------------
End of period............................ $ 382,203,937 $ 241,454,721
============= =============
</TABLE>
- ---------------
* Funds commenced operations on January 1, 1997.
See notes to financial statements.
60
<PAGE> 91
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES -- Mutual Fund Select
Group ( the "Trust") was organized as a Massachusetts Business Trust, and is
registered under the Investment Company Act of 1940, as amended, (the "1940
Act") as an open-end management investment company. Vista Select Balanced Fund
("VSBF"), Vista Select Equity Income Fund ("VSEIF"), Vista Select Large Cap
Equity Fund ("VSLCEF"), Vista Select Large Cap Growth Fund ("VSLCGF"), Vista
Select New Growth Opportunities Fund ("VSNGOF"), Vista Select Small Cap Value
Fund ("VSSCVF"), and Vista Select International Equity Fund ("VSIEF"),
collectively, the "Funds", are separate series of The Trust.
The Funds were established in December 1996 for the conversion of the Chase
Manhattan Bank Common Trust Funds. Effective January 1, 1997, the Chase Common
Trust Funds contributed securities and other assets in exchange for shares of
the newly created Funds in a tax-free exchange.
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.
The following is a summary of significant accounting policies followed by the
Funds:
1. Valuation of investments -- Equity securities, purchased options and
futures are valued at the last sale price on the exchange on which they are
primarily traded, including the NASDAQ National Market. Securities for which
sale prices are not available and other over-the-counter securities are
valued at the last quoted bid price. Bonds and other fixed income securities
(other than short-term obligations), including listed issues, are valued on
the basis of valuations supplied by pricing services or by matrix pricing
systems of a major dealer in bonds. 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. Portfolio
securities for which there are no such quotations or valuations are valued
at fair value as determined in good faith by or at the direction of the
Trustees.
2. 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,
subcustodian, or a bank with which the custodian bank has entered into a
subcustodian agreement, or is segregated in the Federal Reserve Book Entry
System. In connection with transactions in repurchase agreements, if the
seller defaults and the value of the collateral declines, or if the seller
enters an insolvency proceeding, realization of the collateral by the Trust
may be delayed or limited.
3. 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 the broker.
Changes in the value of the contract are recorded as unrealized
appreciation/depreciation until the contract is closed or settled.
The Funds invest in stock index futures contracts for the purpose of hedging
the Fund against share price volatility, which purpose may or may not be
achieved. When the Fund is not fully invested in the securities market, it
may enter into "long" positions in futures or options contracts in order to
gain rapid market exposure that may in part or entirely offset increases in
the cost of securities intended for purchase. Use of futures contracts
subject the Fund to risk of loss in excess of amounts shown on the Statement
of Assets and Liabilities, up to the amount of the value of the futures
contracts as shown in the Portfolio of Investments at April 30, 1997.
The Fund 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.
As of April 30, 1997, the Funds had no futures contracts.
4. Written options -- When a Fund writes an option on a futures contract,
an amount equal to the premium received by the Fund is included in the
Fund's Statement of Assets
61
<PAGE> 92
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
and Liabilities as an asset and corresponding liability. The amount of the
liability is adjusted daily to reflect the current market value of the
written options and the change is recorded in a corresponding unrealized
gain or loss account. When a written option expires on its stipulated
expiration date, or when a closing transaction is entered into, the related
liability is extinguished and the Fund realizes a gain (or loss if the cost
of the closing transaction exceeds the premium received when the option was
written).
The Funds may write options on stock index securities futures. These options
are settled for cash and subject the Fund to market risk in excess of the
amounts that are reflected in the Statement of Assets and Liabilities. The
Fund, however, is not subject to credit risk on written options as the
counterparty has already performed its obligation by paying a premium at the
inception of the contract.
As of April 30, 1997, the Funds had no outstanding written options.
5. Forward Foreign Currency Exchange Contracts -- The VSIEF may enter into
forward foreign currency contracts (obligations to purchase or sell foreign
currency in the future on a date and price fixed at the time the contracts
are entered into) to hedge the Fund against fluctuations in the value of its
assets or liabilities due to change in the value of foreign currencies. Each
day the forward contract is open, changes in the value of the contract are
recognized as unrealized gains or losses by "marking to market". When the
forward contract is closed, or the delivery of the currency is made or
taken, the VSIEF records a realized gain or loss equal to the difference
between the proceeds from (or cost of) the closing transaction and the
Fund's basis in the contract. The VSIEF is subject to off-balance sheet risk
to the extent of the value of the contracts for purchases of currency and in
an unlimited amount for sales of currency.
6. 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 accrued as earned. Dividend income is recorded on
the ex-dividend date.
7. Dollar Rolls -- VSBF enters into dollar rolls in which the Fund sells
mortgage-backed securities for delivery in the current month and
simultaneously contracts to repurchase substantially similar (same type,
coupon and maturity) securities on a specified future date. During the roll
period, the Fund forgoes principal and interest paid on the securities. The
Fund is compensated by the interest earned on the cash proceeds of the
initial sale and a fee earned for entering into the roll transaction. The
fee is amortized into income over the duration of the roll transaction.
8. Foreign Currency Translation -- The books and records of the Funds are
maintained in U.S. dollars. Foreign currency amounts are translated into
U.S. dollars at the official exchange rates, or at the mean of the current
bid and asked prices, of such currencies against the U.S. dollar as quoted
by a major bank, on the following basis:
a. Market value of investment securities and other assets and
liabilities: at the closing rate of exchange at the balance sheet date.
b. Purchases and sales of investment securities, income and expenses:
at the rates of exchange prevailing on the respective dates of such
transactions.
Although the net assets of the Funds are presented at the foreign exchange
rates and market values at the close of the periods, the Funds do not
isolate that portion of the results of operations arising as a result of
changes in the foreign exchange rates from the fluctuations arising from
changes in the market prices of securities held during the year. Similarly,
the Funds do not isolate the effect of changes in foreign exchange rates
from the fluctuations arising from changes in the market prices of long-term
debt securities sold during the year. Accordingly, such realized foreign
currency gains (losses) are included in the reported net realized gains
(losses) on security transactions.
Reported realized foreign exchange gains or losses arise from disposition of
foreign currency, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on
the Funds' books on the transaction date and the U.S. dollar equivalent of
the amounts actually received or paid. Unrealized foreign exchange gains and
losses arise from changes (due to the changes in the exchange rate)
62
<PAGE> 93
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
in the value of foreign currency and other assets and liabilities
denominated in foreign currencies which are held at period end.
9. Organization costs -- Organization and initial registration costs
incurred in connection with establishing the Funds have been deferred and
are being amortized on a straight-line basis over a sixty month period
beginning at the commencement of operations of each Fund.
10. 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.
11. Distributions to shareholders -- Dividends and distributions paid to
shareholders are recorded on the ex-dividend date. The amount of dividends
and distributions from net investment income and net realized capital gains
is determined in accordance with Federal income tax regulations, which may
differ from generally accepted accounting principles. To the extent these
"book/tax" differences are permanent in nature, (i.e., that they result from
other than timing of recognition -- "temporary differences") such amounts
are reclassified within the capital accounts based on their Federal
tax-basis treatment.
12. Expenses -- Expenses directly attributable to a Fund are charged to
that Fund; 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 the 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 the "Adviser") acts as the
Investment Adviser to the Funds. Chase is a direct wholly-owned subsidiary
of The Chase Manhattan Corporation. As Investment Adviser, Chase supervises
the investments of the Funds and for such services is paid a fee. The fee is
computed daily and paid monthly at an annual rate equal to 0.50% for VSBF,
0.40% for VSEIF, VSLCEF, and VSLCGF, 0.65% for VSNGOF and VSSCVF, and 1.00%
for VSIEF of the average daily net assets. The Adviser voluntarily waived
all of its fees.
Chase Asset Management, Inc. ("CAM"), a registered investment adviser, is
the sub-investment adviser to each Fund, with the exception of VSIEF,
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 0.25% for
VSBF, 0.20% for VSEIF, VSLCEF and VSLCGF, 0.30% for VSNGOF and VSSCVF of
average daily net assets.
CAM London, a registered investment adviser is the sub-investment advisor
for VSIEF pursuant to a Sub-Investment Advisory Agreement with Chase and is
paid a fee by Chase at an annual rate equal to 0.50% of the VSIEF's average
daily net assets.
B. Distribution and sub-administration fees -- Pursuant to a Distribution
and Sub-Administration Agreement, Vista Fund Distributors, Inc. (the
"Distributor"), a wholly owned subsidiary of The BISYS Group, Inc., 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 of 0.05% of the average
daily net assets of each Fund.
The Distributor voluntarily waived all of the distribution fees and
sub-administration fees.
C. Administration fee -- Pursuant to an Administration Agreement, Chase
(the "Administrator") provides certain administration services to the Trust.
For these services and facilities, the Administrator receives from the Funds
a fee computed at the annual rate
63
<PAGE> 94
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
equal to 0.10% of the respective Fund's average daily net assets. The
Administrator voluntarily waived all of the administration fees.
D. Waivers of fees -- For the period ended April 30, 1997, the
Administrator, Investment Adviser, and Sub-Administrator voluntarily waived
all fees for each of the Funds. In addition, the Distributor voluntarily
reimbursed expenses of the Funds in the amounts VSBF: $29,296; VSEIF:
$53,434; VSLCEF: $26,138; VSLCGF: $45,049; VSNGOF: $15,632; VSSCVF: $40,562;
and VSIEF: $99,908.
E. Other -- Certain officers of the Trust are officers of Vista Fund
Distributors, Inc. 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 -- For the period ended April 30, 1997, purchases
and sales of investments (excluding short-term investments) were as follows:
<TABLE>
<CAPTION>
VSBF VSEIF VSLCEF VSLCGF
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Purchases (excluding U.S.
Government)...................... $ 69,587,877 $ 249,074,092 $ 29,923,597 $ 131,132,678
Sales (excluding U.S.
Government)...................... 117,603,542 305,612,944 81,506,020 129,016,278
Purchases of U.S. Government...... 83,627,463 45,430,227 -- --
Sales of U.S. Government.......... 53,200,799 -- -- --
<CAPTION>
VSNGOF VSSCVF VSIEF
------------- ------------- -------------
<S> <C> <C> <C>
Purchases (excluding U.S.
Government)...................... $ 21,483,803 $ 18,022,236 $ 113,810,968
Sales (excluding U.S.
Government)...................... 26,615,455 12,703,193 129,167,948
Purchases of U.S. Government...... -- -- --
Sales of U.S. Government.......... -- -- --
</TABLE>
4. FEDERAL INCOME TAX MATTERS -- For Federal income tax purposes, the cost and
unrealized appreciation (depreciation) in value of the investment securities at
April 30, 1997 are as follows:
<TABLE>
<CAPTION>
VSBF VSEIF VSLCEF VSLCGF
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Aggregate cost.................... $ 152,223,401 $ 695,637,218 $ 125,452,808 $ 320,363,492
------------- ------------- ------------- -------------
Gross unrealized appreciation..... 26,000,792 168,395,019 45,721,133 159,888,689
Gross unrealized depreciation..... (2,486,440) (8,982,975) (2,201,650) (9,965,099)
------------- ------------- ------------- -------------
Net unrealized appreciation....... $ 23,514,352 $ 159,412,044 $ 43,519,482 $ 149,923,590
============ ============ ============ ============
<CAPTION>
VSNGOF VSSCVF VSIEF
------------- ------------- -------------
<S> <C> <C> <C>
Aggregate cost.................... $ 84,632,406 $ 251,112,363 $ 200,985,390
------------- ------------- -------------
Gross unrealized appreciation..... 19,521,420 150,239,346 19,175,647
Gross unrealized depreciation..... (7,795,716) (19,739,537) (6,894,739)
------------- ------------- -------------
Net unrealized appreciation....... $ 11,725,704 $ 130,499,809 $ 12,280,908
============ ============ ============
</TABLE>
64
<PAGE> 95
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
5. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST -- Transactions in Shares of
Beneficial Interest were as follows:
<TABLE>
<CAPTION>
Vista Select Balanced Vista Select Equity
Fund Income Fund
------------------------ ------------------------
01/01/97 01/01/97
Through 04/30/97 Through 04/30/97
------------------------ ------------------------
Amount Shares Amount Shares
------------ --------- ------------ ---------
<S> <C> <C> <C> <C>
Shares sold......................... $ 180,239 4,042 $ 13,407,787 152,892
Shares issued in exchange for Common
Trust Fund Assets (see Note 1).... 185,334,938 6,052,670 828,838,615 9,754,471
Shares issued in reinvestment of
distributions..................... 465,191 14,944 1,362,507 15,237
Shares redeemed..................... (10,963,058) (357,494) (41,516,689) (462,255)
------------ --------- ------------ ---------
Net increase (decrease) in Trust
shares outstanding................ $175,017,310 5,714,162 $802,092,220 9,460,345
============= ========= ============= =========
</TABLE>
<TABLE>
<CAPTION>
Vista Select Large Cap Vista Select Large Cap
Equity Fund Growth Fund
------------------------ ------------------------
01/01/97 01/01/97
Through 04/30/97 Through 04/30/97
------------------------ ------------------------
Amount Shares Amount Shares
------------ --------- ------------ ---------
<S> <C> <C> <C> <C>
Shares sold......................... $ 4,114,534 9,564 $ 29,289,435 368,186
Shares issued in exchange for Common
Trust Fund Assets (see Note 1).... 200,538,629 489,840 446,275,715 5,718,447
Shares issued in reinvestment of
distributions..................... 20,885 48 130,444 1,632
Shares redeemed..................... (50,834,172) (115,659) (20,815,777) (263,773)
------------ --------- ------------ ---------
Net increase (decrease) in Trust
shares outstanding................ $153,839,876 383,793 $454,879,817 5,824,492
============= ========= ============= =========
<CAPTION>
Vista Select New Growth Vista Select Small Cap
Opportunities Fund Value Fund
------------------------ ------------------------
01/01/97 01/01/97
Through 04/30/97 Through 04/30/97
------------------------ ------------------------
Amount Shares Amount Shares
------------ --------- ------------ ---------
<S> <C> <C> <C> <C>
Shares sold......................... $ 9,227,683 16,175 $ 33,911,642 663,516
Shares issued in exchange for Common
Trust Fund Assets (see Note 1).... 126,731,626 221,746 391,143,652 7,540,472
Shares issued in reinvestment of
distributions..................... -- -- 30 1
Shares redeemed..................... (30,054,480) (53,009) (21,447,198) (426,984)
------------ --------- ------------ ---------
Net increase (decrease) in Trust
shares outstanding................ $105,904,829 184,912 $403,608,126 7,777,005
============= ========= ============= =========
</TABLE>
65
<PAGE> 96
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Select
International Equity
Fund
------------------------
01/01/97
Through 04/30/97
------------------------
Amount Shares
------------ ---------
<S> <C> <C> <C> <C>
Shares sold......................... $ 34,636,522 206,038
Shares issued in exchange for Common
Trust Fund Assets (see Note 1).... 235,112,683 1,368,148
Shares issued in reinvestment of
distributions..................... -- --
Shares redeemed..................... (33,750,006) (196,418)
------------ ---------
Net increase (decrease) in Trust
shares outstanding................ $235,999,199 1,377,768
============= =========
</TABLE>
6. RETIREMENT PLAN -- 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 period ended April 30, 1997, 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:
<TABLE>
<CAPTION>
Accrued
Pension Pension
Expenses Liability
-------- -------
<S> <C> <C>
VSBF........................................................... $1,148 $11,997
VSEIF.......................................................... 5,028 52,571
VSLCEF......................................................... 1,236 12,937
VSLCGF......................................................... 2,784 29,124
VSNGOF......................................................... 780 8,153
VSSCVF......................................................... 2,516 26,305
VSIEF.......................................................... 1,412 14,769
</TABLE>
66
<PAGE> 97
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
7. OPEN FORWARD FOREIGN CURRENCY CONTRACTS -- The following forward foreign
currency contracts were held by the funds at April 30,1997.
<TABLE>
<CAPTION>
Vista Select International Equity Fund
----------------------------------------------------------------------------
Market Net Unrealized
Delivery Value Cost Settlement Value Gain (Loss)
(Local Currency) (USD) Date (USD) (USD)
---------------- ---------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C>
PURCHASES
Australian Dollar..... 217,260 169,506 05/01/97 169,818 312
Swiss Frank........... 2,052,000 1,399,059 05/02/97 1,392,662 (6,397)
UK Sterling........... 461,000 751,200 05/02/97 748,019 (3,181)
Malaysian Ringgit..... 1,763,270 701,520 05/05/97 702,379 859
Portuguese Escudo..... 61,175,170 353,267 05/06/97 352,098 (1,169)
German Deutsche
Mark................. 4,250,000 2,512,783 06/03/97 2,459,997 (52,786)
UK Sterling........... 7,300,000 11,920,535 06/03/97 11,840,172 (80,363)
Italian Lira.......... 2,143,275,000 1,248,594 06/03/97 1,250,360 1,766
SALES
Dutch Guilder......... 2,631,054 1,353,353 05/02/97 1,350,570 (2,783)
German Deutsche
Mark................. 18,000,000 11,276,730 05/30/97 10,878,685 (398,045)
German Deutsche
Mark................. 20,000,000 11,689,822 05/30/97 11,573,069 (116,753)
Italian Lira.......... 4,286,550,000 2,512,783 05/30/97 2,500,720 (12,063)
German Deutsche
Mark................. 2,153,504 1,248,594 06/03/97 1,246,497 (2,097)
UK Sterling........... 11,150,000 18,174,946 06/03/97 18,084,646 (90,300)
German Deutsche
Mark................. 5,600,000 3,286,771 07/09/97 3,249,935 (36,836)
Japanese Yen.......... 1,204,000,000 9,649,214 07/09/97 9,585,388 (63,826)
</TABLE>
8. FOREIGN CASH POSITIONS
<TABLE>
<CAPTION>
Vista Select International Equity Fund
-------------------------------------------------------------------
Market Net Unrealized
Delivery Value Cost Value Gain (Loss)
(Local Currency) (USD) (USD) (USD)
---------------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
Austrian Schiling......... 3,002 $ 251 $ 246 $ (5)
Australian Dollar......... 3,282 2,560 2,565 5
Belgian Franc............. 140,272 3,992 3,992 0
Swiss Franc............... 1 1 1 0
German Deutsche Mark...... 1,039 603 600 (3)
Spanish Peseta............ 1,221,802 16,544 8,364 (8,180)
French Franc.............. (7,359,797) (1,247,208) (1,261,103) (13,895)
UK Sterling............... 88,223 143,209 143,151 (58)
Hong Kong Dollar.......... 6 1 1 0
Japanese Yen.............. 577,766,336 4,591,095 4,612,168 21,073
Malaysian Ringgit......... (845,673) (336,694) (336,924) (230)
Dutch Guilder............. 75 39 39 0
Swedish Krona............. 0 (434) 0 434
Singapore Dollar.......... (426) (295) (203) 92
Thai Baht................. (2,338) (91) (89) 2
----------- -----------
$ 3,173,573 $ 3,172,808
=========== ===========
</TABLE>
67
<PAGE> 98
VISTA MUTUAL FUNDS
SELECTED DATA AND RATIOS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
For the period January 1, 1997* through April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Select Vista Select Vista Select Vista Select
Vista Select Equity Large Cap Large Cap New Growth
Balanced Income Equity Growth Opportunities
Fund Fund Fund Fund Fund
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period........... $ 30.62 $ 85.80 $ 415.39 $ 78.73 $ 571.14
-------- -------- -------- -------- --------
Income from Investment Operations:
Net Investment Income...................... 0.384 0.756 2.466 0.289 1.698
Net Gains or Losses in Securities (both
realized and unrealized)................. 0.460 3.950 23.429 2.400 (51.578)
-------- -------- -------- -------- --------
Total from Investment Operations........... 0.844 4.706 25.895 2.689 (49.880)
-------- -------- -------- -------- --------
Less Distributions:
Dividends from Net Investment Income....... 0.384 0.756 2.465 0.289 1.460
-------- -------- -------- -------- --------
Net Asset Value, End of Period................. $ 31.08 $ 89.75 $ 438.82 $ 81.13 $ 519.80
======== ======== ======== ======== ========
Total Return................................... 2.77% 6.52% 7.80% 4.34% (8.79%)
Ratios/Supplemental Data
Net Assets, End of Period (000 omitted)...... $177,605 $849,052 $168,416 $472,518 $ 96,117
Ratios to Average Net Assets: #
Ratio of Expenses.......................... 0.03% 0.03% 0.03% 0.02% 0.08%
Ratio of Net Investment Income............. 3.75% 2.57% 1.73% 1.11% 0.85%
Ratio of Expenses Without Waivers and
Assumption of Expenses................... 0.73% 0.59% 0.62% 0.60% 0.92%
Ratio of Net Investment Income Without
Waivers and Assumption of Expenses....... 3.05% 2.01% 1.14% 0.53% 0.01%
Portfolio Turnover Rate........................ 90% 37% 16% 29% 23%
Average Commission Rate Paid................... $0.06000 $0.05940 $0.05950 $0.05740 $ 0.05980
<CAPTION>
Vista Select Vista Select
Small Cap International
Value Equity
Fund Fund
------------ -------------
<S> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period........... $ 52.23 $ 171.21
-------- --------
Income from Investment Operations:
Net Investment Income...................... 0.199 0.898
Net Gains or Losses in Securities (both
realized and unrealized)................. (3.127) 3.484
-------- --------
Total from Investment Operations........... (2.928) 4.382
-------- --------
Less Distributions:
Dividends from Net Investment Income....... 0.152 0.392
-------- --------
Net Asset Value, End of Period................. $ 49.15 $ 175.20
======== ========
Total Return................................... (4.95%) 2.18%
Ratios/Supplemental Data
Net Assets, End of Period (000 omitted)...... $382,204 $ 241,455
Ratios to Average Net Assets: #
Ratio of Expenses.......................... 0.02% 0.11%
Ratio of Net Investment Income............. 1.22% 1.61%
Ratio of Expenses Without Waivers and
Assumption of Expenses................... 0.85% 1.39%
Ratio of Net Investment Income Without
Waivers and Assumption of Expenses....... 0.39% 0.33%
Portfolio Turnover Rate........................ 4% 55%
Average Commission Rate Paid................... $0.04971 $ 0.05292
</TABLE>
- ---------------
* Commencement of operations.
# Short periods have been annualized.
See notes to financial statements.
68
<PAGE> 99
VISTA SERVICE CENTER
P.O. BOX 419392
KANSAS CITY, MO 64179
Investment Adviser, Administrator
and Custodian
The Chase Manhattan Bank
Distributor
Vista Fund Distributors, Inc.
Transfer Agent
DST Systems, Inc.
Legal Counsel
Simpson Thacher & Bartlett
Independent Accountants
Price Waterhouse LLP
Vista Mutual Funds are distributed by Vista Fund Distributors, Inc., which is
unaffiliated with The Chase Manhattan Bank. Chase and its respective affiliates
receive compensation from the 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 accompanies by a prospectus.
The financial information in this report has been taken from the books and
records of the Funds without examination by independent accountants, who express
no opinion thereto.
VSE-3-697
