<PAGE>
CHASE VISTA SELECT EQUITY FUNDS
[LOGO]
CHASE VISTA SELECT FUNDS(Signature Mark)
ANNUAL
REPORT
------------
Chase Vista Select(SM). Make the Powerful Connection.
CHASE VISTA SELECT BALANCED FUND
CHASE VISTA SELECT EQUITY INCOME FUND
CHASE VISTA SELECT LARGE CAP EQUITY FUND
CHASE VISTA SELECT LARGE CAP GROWTH FUND
CHASE VISTA SELECT NEW GROWTH
OPPORTUNITIES FUND
CHASE VISTA SELECT SMALL CAP VALUE FUND
CHASE VISTA SELECT INTERNATIONAL
EQUITY FUND
October 31, 1998 ANSE1-2-1298
<PAGE>
Highlights
U.S. equity markets asdvanced despite significant market volatility during the
period.
o The economic and currency crisis in southeast Asia and the global liquidity
crisis ignited by Russia's financial problems were largely responsible for the
market's wide price fluctuations.
o Economic conditions were generally good, with inflation benign and interest
rates falling to record lows late in the fiscal year.
o Large cap stocks continued to outperform small- and medium-cap stocks, though
secondary issues showed signs of strength late in the period.
CONTENTS
<TABLE>
<S> <C>
Chairman's Letter 3
Chase Vista Select Balanced Fund
Fund Commentary o Portfolio of Investments 4
Chase Vista Select Equity Income Fund
Fund Commentary o Portfolio of Investments 17
Chase Vista Select Large Cap Equity Fund
Fund Commentary o Portfolio of Investments 27
Chase Vista Select Large Cap Growth Fund
Fund Commentary o Portfolio of Investments 37
Chase Vista Select New Growth Opportunities Fund
Fund Commentary o Portfolio of Investments 47
Chase Vista Select Small Cap Value Fund
Fund Commentary o Portfolio of Investments 57
Chase Vista Select International Equity Fund
Fund Commentary o Portfolio of Investments 67
Financial Statements 81
Notes to Financial Statements 87
Financial Highlights 97
</TABLE>
- --------------------------------------------------------------------------------
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>
Chase Vista Select Funds(SM)
Chairman's Letter
December 1, 1998
Dear Shareholder:
We are pleased to present this annual report for the following Chase Vista
Select Equity Funds for the one-year period ended October 31, 1998:
<TABLE>
<S> <C>
Balanced Fund Equity Income Fund
Large Cap Equity Fund Large Cap Growth Fund
New Growth Opportunities Fund Small Cap Value Fund
International Equity Fund
</TABLE>
Stocks Advance Amidst Volatility
In an environment punctuated by volatile market conditions, subdued inflation
and falling interest rates, the stock market recorded good investment results.
Early in the period, stock prices retreated due to investor concerns over the
impact of the Asian economic crisis on corporate earnings. Those worries were
short-lived, as stocks rebounded by year end 1997, completing the best
consecutive three-year run in stock market history. January was a difficult
month for equities, because investors wondered if the market could maintain its
momentum. Good economic news buoyed the market from February through April, but
the Asian crisis re-surfaced in late spring, sending prices lower again. The
market rebounded but had a difficult time repeating the process in July when
Russia's financial problems set off a global liquidity crisis. For six weeks,
stock prices moved gradually lower, erasing all of 1998's gains. On September
29, the Federal Reserve lowered short-term interest rates, the first such move
since December, 1996. But it was the central bank's decision to cut rates on
October 15, in between regularly schedule Federal Open Market Committee
meetings, that lifted the market markedly higher during the final two weeks of
the period.
Bonds Move Higher on Fears of Slowing Growth
Bonds recorded solid investment results, thanks largely to falling interest
rates brought on by concerns of a slowing global economy.
Early in the period, concerns over the Asian economic crisis pushed rates lower
and lifted bond prices. During the first quarter of 1998, rates stayed in a
relatively narrow range, as fears of a slowdown in global economic growth were
offset by more favorable domestic economic news. The re-emergence of the Asian
crisis in spring helped bond prices, as rates resumed their fall. Bonds rallied
strongly when Russia defaulted on its debt, causing a global liquidity crisis
and pushing the yield on the 30-year Treasury bond to a historic low. The Fed's
move to lower interest rates late in the period gave investors confidence that
the central bank would be diligent in keeping the country's economy from
slowing significantly. In the final two weeks of the fiscal year, interest
rates bounced off their lows and bond prices gave back some of their gains, but
not after recording solid investment results for the year.
Overall, it was another good fiscal year for long-term investors who used
market downturns to add to existing positions at favorable prices.
Sincerely,
[Signature of Fergus Reid]
Fergus Reid, Chairman
3
<PAGE>
Chase Vista Select Balanced Fund
as of October 31, 1998
(unaudited)
Fund Facts
<TABLE>
<S> <C>
Objective Capital growth plus current income
Primary investments Common stocks, preferred stocks,
convertibles, warrants and investment
grade fixed-income securities
Suggested investment
time frame Mid- to long-term
Market benchmark S&P 500 Index
Lehman Aggregate Bond Index
Lipper funds category Balanced Funds Average
Inception date 1/1/97
Newspaper symbol Balanced
Net assets $152.1 million
</TABLE>
Investment Style/Market Cap Average Maturity/Quality
- --------------------------- ----------------------------
| | | | | | | |
| | X | | Large | | | | High
| | | | | | | |
- --------------------------- ----------------------------
| | | | | | | |
| | | | Med. | | | X | Med.
| | | | | | | |
- --------------------------- ----------------------------
| | | | | | | |
| | | | Small | | | | Low
| | | | | | | |
- --------------------------- ----------------------------
Value Blend Growth Short Int. Long
4
<PAGE>
Chase Vista Select Balanced Fund
as of October 31, 1998
(unaudited)
How the Fund Performed
Chase 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 14.28% for the one-year period
ended October 31, 1998.
How the Fund Was Managed
The Fund's performance was due largely to sound asset allocation strategies, an
overweighting in defensive stocks during periods of market weakness and our
longer-than-average duration strategy for the portfolio's fixed income
investments.
Early in the period, the Fund's decision to increase its exposure to defensive
stocks, such as media and utility stocks, contributed favorably to performance
as the Asian economic crisis weighed heavily on the market. During this period,
interest rates fell, encouraging management to take profits in some of its
fixed-income holdings.
In the first few months of 1998, the Fund's exposure to financial, technology
and consumer cyclical stocks proved beneficial to shareholders. Improving
economic conditions and diminishing fears over a global economic slowdown were
mainly responsible for their positive performance.
Our decision to trim the Fund's exposure to some of the stocks in these
industries prior to the market's summer swoon benefited shareholders as many
securities in these sectors declined. We used the market downturn to increase
our exposure to high-quality, undervalued securities that, in our judgment,
were selling at attractive valuations. During the market's decline, our
fixed-income investments registered strong gains as interest rates fell to
historic lows.
Where the Fund May Be Headed
Looking ahead, the outlook for equities is generally positive, though earnings
may come under some pressure in 1999 because of the global economic
uncertainty. We are particularly optimistic about the prospects for higher
prices among small- and mid-cap stocks, due to their attractive valuations and
the recent investor interest in these issues.
Given the concerns over the global economy, we do not expect interest rates to
trend markedly higher in the months ahead. As a result, we intend to use any
major upturn in interest rates as an opportunity to increase our investment in
fixed-income securities.
5
<PAGE>
Chase Vista Select Balanced Fund
as of October 31, 1998
(unaudited)
How Much of the Fund Was Invested
[Pie Chart]
Cash (2.5%)
Investments (97.5%)
What the Fund Invested In
Percentage of Total Portfolio Investments
[Pie Chart]
Asset Backed Securities (1.90%)
Basic Materials (1.59%)
Capital Goods (6.09%)
Collateralized Mortgage Obligations (2.14%)
Commercial Mortgage Backed Securities (4.15%)
Consumer Cyclicals (13.11%)
Consumer Scaples (1.78%)
Energy (8.37%)
Financial (8.44%)
Health Care (7.08%)
Residential Mortgage Backed Pass Through Securities (7.67%)
REITs (1.81%)
Technology (4.94%)
Transportation (0.37%)
U.S. Treasury Securities (11.92%)
U.S. Government Agency Obligations (4.63%)
Utilities (14.01%)
Top Ten Equity Holdings
1. BellSouth Corp. (2.66%) Provides domestic and international wireless
telecommunications services, systems and products mainly to the
southeastern U.S.
2. EMC Corp. (2.36%) Designs, manufactures, markets, and supports products
that store, manage and protect information from all major computing
environments, including "UNIX" and "Windows NT."
3. Bristol-Myers Squibb Co. (2.14%) A diversified worldwide health and
personal care company that manufactures and markets pharmaceuticals,
consumer medicines, beauty care products, nutritionals, and medical
devices.
4. Philip Morris Companies, Inc. (2.05%) A consumer packaged goods company .
The Company's products include "Bull's Eye," "Breakstone's," "Kraft" and
"Marlboro" cigarettes, "Cracker Barrel" and "Polly-o" cheeses, "Miller"
and "Milwaukee's Best" beer.
5. General Electric Co. (2.04%) A diversified manufacturing, technology and
services company. Operations include appliance manufacturing, capital
services, information services, and electrical distribution.
6. Exxon Corp. (1.90%) Explores for and produces crude oil and natural gas;
manufactures petroleum products; and transports and sells crude oil,
natural gas, and petroleum products.
7. Kroger Corp. (1.85%) Operates supermarkets and convenience stores and
processes food. Also operates food processing facilities which supply
private label products to the company's supermarkets.
8. CVS Corp. (1.83%) Operates a drug store chain in 24 states in the
Northeast, Mid-Atlantic, Southeast and Midwest.
9. Merck & Company, Inc. (1.81%) A worldwide health products company that
specializes in human health, managed pharmaceutical care, manufacturing,
research, and vaccine. Merck's products include treatment for
osteoporosis and high blood pressure.
10. Mobil Corp. (1.72%) Operates in worldwide energy industries and
manufactures and markets petrochemicals, packaging films and specialty
chemical products.
Top 10 equity holdings comprised 20.36% of Fund's market value of investments.
Fund holdings are subject to change at any time.
6
<PAGE>
Chase Vista Select Balanced Fund
as of October 31, 1998
(unaudited)
Average Annual Total Returns+
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the securities markets, tends
to be more volatile than the long-term trend.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1 Year 5 Years 10 Years
-------------- -------------- ---------------
Select Balanced 14.28% 11.98% 11.53%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
+ The quoted performance of Chase Vista Select Balanced Fund includes
performance of a predecessor account for the period dating back to 10/31/88 and
prior to the Fund's commencement of operations on 1/1/97. 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>
Chase Vista Select Balanced Fund
as of October 31, 1998
(unaudited)
10-Year Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista Select Balanced Fund compared to its key
benchmarks. This is where you see the Fund's long-term trend. This chart is for
illustrative purposes only.
[Line Graph]
<TABLE>
<CAPTION>
Lipper Chase Lehman
Chase Vista Balanced Vista Select Aggregate
Selected Fund Balanced Bond
Balanced Fund Average Fund Index
------------- --------- ------------ ---------
<S> <C> <C> <C> <C>
1988 $10,000 $10,000 $10,000 $10,000
1989 11,395.8 11,664.8 12,635.1 11,190
1990 11,375.5 11,141.5 11,691.3 11,893.5
1991 13,846.2 14,212.5 15,597 13,773.5
1992 15,281.1 15,517.4 17,148.5 15,129.2
1993 16,928 17,827.5 19,707.9 16,925.2
1994 16,255 17,680.7 20,468.4 16,303.1
1995 19,621.4 20,878.4 25,871 18,855
1996 21,928.4 23,962.9 32,094.8 19,954.8
1997 26,088.7 28,625.2 42,389.7 21,731.8
1998 28,914.7 31,172.2 51,716.8 23,758
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. 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 Chase Vista Select Balanced Fund, the Standard & Poor's
500 Index, the Lehman Aggregate Bond Index and Lipper Balanced Funds Average for
the ten years ended 10/31/98. The performance of the Fund assumes reinvestment
of all dividends and capital gains. The performance of the average and the index
does not include a sales charge and has been adjusted to reflect the
reinvestment of all dividends and capital gains on the securities included in
the benchmark. The Standard and 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 reflects the reinvestment of dividends. An individual cannot
invest in an index.
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
indexes are unmanaged and reflect the reinvestment of dividends. An individual
cannot invest in an index.
The Lipper Balanced Funds Average represents the average performance of a
universe of 392 actively managed balanced funds. Lipper is an independent
mutual fund performance monitor whose results are based on total return and do
not reflect a sales charge.
The quoted performance of Chase Vista Select Balanced Fund includes performance
of a predecessor account for the period dating back to 10/31/88 and prior to
the Fund's commencement of operations on 1/1/97. 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.
8
<PAGE>
Chase Vista Select Balanced Fund
Portfolio of Investments October 31, 1998
<TABLE>
<CAPTION>
Shares Issuer Value
- -------------------------------------------------------------
Long-Term Investments -- 96.2%
- -------------------------------------------------------------
<S> <C> <C>
Common Stock -- 54.4%
------------------------------------
Automotive -- 0.8%
18,000 General Motors Corp. $ 1,135,125
------------
Banking -- 3.5%
25,462 Bank One Corp. 1,244,455
29,687 BankAmerica Corp. 1,705,147
24,000 First Union Corp. 1,392,000
10,000 J. P. Morgan & Company, Inc. 942,500
------------
5,284,102
------------
Chemicals -- 0.3%
5,000 Dow Chemical Co. 468,125
------------
Computer Software -- 0.6%
22,000 Computer Associates International 866,250
------------
Computers/Computer Hardware -- 3.7%
55,000 EMC Corp.* 3,540,625
12,500 Gateway 2000 Inc.* 697,656
15,000 Ingram Micro, Inc., Class A* 682,500
5,000 International Business Machines
Corp. 742,188
------------
5,662,969
------------
Consumer Products -- 2.0%
60,000 Philip Morris Companies, Inc. 3,067,500
------------
Diversified -- 2.4%
15,000 Corning Inc. 544,687
35,000 General Electric Co. 3,062,500
------------
3,607,187
------------
Entertainment/Leisure -- 0.8%
36,000 Carnival Corp., Class A 1,165,500
------------
Financial Services -- 1.1%
30,000 Federal Home Loan Mortgage Corp. 1,725,000
------------
Food/Beverage Products -- 0.8%
35,000 PepsiCo Inc. 1,181,250
------------
Insurance -- 2.4%
40,000 Allstate Corp. 1,722,500
22,500 American International Group 1,918,125
------------
3,640,625
------------
</TABLE>
See notes to financial statements.
9
<PAGE>
Chase Vista Select Balanced Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- --------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
Metals/Mining -- 0.5%
10,000 Aluminum Co. of America
(ALCOA) $ 792,500
------------
Office/Business Equipment -- 1.0%
15,000 Xerox Corp. 1,453,125
------------
Oil & Gas -- 8.2%
10,000 Chevron Corp. 815,000
40,000 Coastal Corp. 1,410,000
40,000 Exxon Corp. 2,850,000
32,000 Halliburton Co. 1,150,000
34,000 Mobil Corp. 2,573,375
24,000 Royal Dutch Petroleum Co.,
New York Registered Shares
(Netherlands) 1,182,000
20,000 Texaco, Inc. 1,186,250
50,000 Williams Companies, Inc. 1,371,875
------------
12,538,500
------------
Paper/Forest Products -- 0.7%
36,000 Willamette Industries, Inc. 1,116,000
------------
Pharmaceuticals -- 6.3%
29,000 Bristol-Myers Squibb Co. 3,206,313
25,000 Johnson & Johnson, Inc. 2,037,500
20,000 Merck & Company, Inc. 2,705,000
15,000 Pfizer, Inc. 1,609,687
------------
9,558,500
------------
Printing & Publishing -- 0.7%
40,000 New York Times Co., Class A 1,130,000
------------
Real Estate Investment Trust -- 1.8%
23,000 AMB Property Corp. 529,000
57,720 Equity Office Properties Trust 1,385,280
30,000 Public Storage, Inc. 800,625
------------
2,714,905
------------
Restaurants/Food Services -- 0.9%
20,000 McDonald's Corp. 1,337,500
------------
Retailing -- 6.3%
60,000 CVS Corp. 2,741,250
60,000 Dayton-Hudson Corp. 2,542,500
</TABLE>
See notes to financial statements.
10
<PAGE>
Chase Vista Select Balanced Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- -------------------------------------------------------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
14,627 Federated Department Stores* $ 562,225
50,000 Kroger Co.* 2,775,000
20,000 Sears Roebuck & Co. 898,750
------------
9,519,725
------------
Shipping/Transportation -- 0.4%
18,000 Burlington Northern Santa Fe 555,750
------------
Telecommunications -- 7.5%
36,000 Ameritech Corp. 1,941,750
50,000 BellSouth Corp. 3,990,625
25,000 GTE Corp. 1,467,188
40,000 MCI WorldCom, Inc.* 2,210,000
40,228 SBC Communications, Inc. 1,863,059
------------
11,472,622
------------
Utilities -- 1.7%
24,000 LG&E Energy Corp. 633,000
75,000 OGE Energy Corp. 1,992,187
------------
2,625,187
------------
Total Common Stock 82,617,947
------------
(Cost $38,901,252)
Convertible Preferred Stock -- 2.7%
------------------------------------
Diversified -- 0.6%
17,000 Corning Delaware LP, 6.00%,
12/31/49 Series 978,563
------------
Manufacturing -- 0.4%
25,000 Ingersoll-Rand Co., 6.75%, 12/31/49
Series 634,375
------------
Telecommunications -- 1.1%
20,000 AirTouch Communications, 4.25%,
08/16/16 Series 1,601,250
------------
Utilities -- 0.6%
12,000 Houston Industries, Inc., 7.00%,
07/01/00 Series 972,750
------------
Total Convertible Preferred Stock 4,186,938
------------
(Cost $2,981,203)
</TABLE>
See notes to financial statements.
11
<PAGE>
Chase Vista Select Balanced Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------ ----------------------------------- ------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
Corporate Notes & Bonds -- 8.0%
-----------------------------------
Banking -- 0.5%
$ 750,000 First Union Corp., 6.40%,
04/01/08 $ 776,873
------------
Consumer Products -- 0.6%
940,000 Procter & Gamble Co., 5.25%,
09/15/03 955,848
------------
Diversified -- 0.4%
650,000 Tyco International Group, SA
(Luxembourg),# 5.88%,
11/01/04 653,250
------------
Entertainment/Leisure -- 0.6%
750,000 Time Warner Inc., 7.75%, 06/15/05 820,493
------------
Financial Services -- 0.8%
600,000 Ford Motor Credit Co., 5.13%,
10/15/01 622,458
600,000 Hartford Financial Services Group,
6.38%, 11/01/08 602,250
------------
1,224,708
------------
Food/Beverage Products -- 1.0%
1,000,000 Campbell Soup Co., 4.75%,
10/01/03 992,000
500,000 Kellogg Co., 4.88%, 10/15/05 492,640
------------
1,484,640
------------
Industrial Components -- 0.7%
1,000,000 Raytheon Corp., 5.95%, 03/15/01 1,012,480
------------
Retailing -- 0.6%
500,000 Dayton-Hudson Corp., 6.40%,
02/15/03 518,480
440,000 Kroger Co., 6.38%, 03/01/08 439,028
------------
957,508
------------
Telecommunications -- 0.7%
480,000 GTE Northwest Inc., 5.55%,
10/15/08 474,667
590,000 Worldcom, Inc., 6.13%, 08/15/01 603,287
------------
1,077,954
------------
</TABLE>
See notes to financial statements.
12
<PAGE>
Chase Vista Select Balanced Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ---------------------------------------------------------------------
Long-Term Investments -- (continued)
- ---------------------------------------------------------------------
<S> <C> <C>
Utilities -- 2.1%
$ 3,000,000 Texas Utilities Electric, Capital V,
8.18%, 01/30/37 $ 3,236,220
------------
Corporate Notes & Bonds 12,199,974
------------
(Cost $11,880,586)
Convertible Corporate Notes & Bonds -- 1.5%
-------------------------------------------
Computers/Computer Hardware -- 0.6%
300,000 EMC Corp.,# 3.25%, 03/15/02 870,000
------------
Health Care/Health Care Services -- 0.2%
500,000 Assisted Living Concepts Inc.,#
5.63%, 05/01/03 369,375
------------
Manufacturing -- 0.2%
350,000 Tower Automotive, Inc.,# 5.00%,
08/01/04 353,500
------------
Pharmaceuticals -- 0.5%
500,000 ALZA Corp., 5.00%, 05/01/06 673,125
------------
Total Convertible Corporate
Notes & Bonds 2,266,000
------------
(Cost $1,642,780)
Mortgage Backed Securities -- 13.8%
-----------------------------------------
Residential Mortgage Backed Pass
Through Securities -- 7.6%
Federal National Mortgage
Association,
2,018,088 Pool 100156, 12.50%, 06/15/19 2,321,992
1,736,900 Pool 250375, 6.50%, 09/01/25 1,751,003
1,385,199 Pool 313046, 9.00%, 08/01/26 1,460,083
1,582,046 Pool 414641, 9.00%, 10/01/27 1,667,572
1,668,699 Pool 415868, 9.00%, 01/01/28 1,758,909
2,509,109 Government National Mortgage
Association, Pool 351335, 6.50%,
11/15/23 2,538,892
------------
11,498,451
------------
</TABLE>
See notes to financial statements.
13
<PAGE>
Chase Vista Select Balanced Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------- -------------------------------------------- ------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------------
<S> <C> <C>
Collateralized Mortgage Obligations -- 2.1%
$ 1,500,000 Ocwen Mortgage Loan Asset Backed
Certification, Ser. 1998-OFS1,
Class M1, FRN, 6.04%, 04/25/29 $ 1,499,070
1,000,000 Structured Asset Securities Corp., Ser.
1998-8, Class M2, FRN, 5.82%,
08/25/28 963,750
750,000 Willowbrook Finance Corp., Ser.
1997-1, Class B,# FRN, 5.69%,
05/15/02 742,035
------------
3,204,855
------------
Commercial Mortgage Backed
Securities -- 4.1%
2,892,023 GS Mortgage Securities Corp. II, Ser.
1998-GLII, Class A1, 6.31%,
04/13/31 2,953,623
3,250,000 Merrill Lynch Mortgage Investors,
Inc., Ser. 1997-C2, Class C,
6.67%, 12/10/29 3,259,815
------------
6,213,438
------------
Total Mortgage Backed Securities 20,916,744
------------
(Cost $20,804,235)
Asset Backed Securities -- 1.9%
--------------------------------------------
1,500,000 Citibank Credit Card Master Trust I,
Ser. 1996-5, Class B, FRN, 5.97%,
09/15/05 1,481,250
500,000 Citibank Credit Card Master Trust,
Ser. 1998 -- 2A, 6.05%, 01/15/10 502,500
866,398 Mid-State Trust , Ser. 6, Class A4,
7.79%, 07/01/35 868,564
------------
Total Asset Backed Securities 2,852,314
------------
(Cost $2,870,606)
U.S. Treasury Securities -- 11.6%
--------------------------------------------
U.S. Treasury Notes & Bonds,
2,750,000 5.50%, 05/31/03 2,879,773
1,000,000 5.75%, 04/30/03 1,056,410
</TABLE>
See notes to financial statements.
14
<PAGE>
Chase Vista Select Balanced Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
$ 3,300,000 6.13%, 08/15/07 $ 3,643,398
4,400,000 6.50%, 08/15/05 4,915,636
2,000,000 6.63%, 02/15/27 2,368,120
1,000,000 7.13%, 02/15/23 1,233,910
1,100,000 8.75%, 08/15/20 1,567,841
------------
Total U.S. Treasury Securities 17,665,088
------------
(Cost $16,297,319)
U.S. Government Agency Obligations -- 2.3%
------------------------------------------
Federal Home Loan Bank -- 1.0%
1,500,000 5.50%, 08/13/01 1,529,760
------------
Federal Home Loan Mortgage
Association -- 1.3%
500,000 5.13%, 10/15/08 497,090
1,450,000 5.75%, 02/15/08 1,507,086
------------
2,004,176
------------
Total U.S. Government Agency
Obligations 3,533,936
(Cost $3,427,807)
-----------------------------------------------------------------
Total Long-Term Investments 146,238,941
(Cost $98,805,788)
==================================================================
Short-Term Investments -- 2.3%
- ------------------------------------------------------------------
U.S. Treasury Securities -- 0.1%
--------------------------------------
200,000 U.S. Treasury Bill, 5.12%, 04/29/99@ 194,947
------------
(Cost $194,947)
U.S. Government Agency Obligations -- 2.2%
- ------------------------------------------------------------------
3,399,000 Federal Home Loan Bank, Discount
Note, 5.40%, 11/02/98 3,399,000
(Cost $3,399,000)
==================================================================
Total Short-Term Investments 3,593,947
(Cost $3,593,947)
==================================================================
Total Investments -- 98.5% $149,832,888
(Cost $102,399,735)
==================================================================
</TABLE>
See notes to financial statements.
15
<PAGE>
Chase Vista Select Balanced Fund
Index
* -- Non income producing security.
# -- Security may only be sold to qualified institutional buyers.
ADR -- American Depository Receipt.
GDR -- Global Depository Receipt.
@ -- All or a portion of this security is segregated.
FRN -- Floating Rate Note: The maturity date shown is the next interest reset
date; the rate shown is the rate in effect at October 31, 1998.
16
<PAGE>
Chase Vista Select Equity Income Fund
as of October 31, 1998
(unaudited)
Fund Facts
<TABLE>
<S> <C>
Objective Income
Primary investments Income producing common stocks,
preferred stocks and convertible securities
Suggested investment
time frame Long-term
Market benchmark S&P 500 Index
Lipper funds category Equity Income Funds Average
Inception date 1/1/97
Newspaper symbol Eq Inc
Net assets $923.0 million
</TABLE>
Investment Style/Market Cap
- ----------------------------
| | | |
| X | | | Large
| | | |
- ----------------------------
| | | |
| | | | Med.
| | | |
- ----------------------------
| | | |
| | | | Small
| | | |
- ----------------------------
Value Blend Growth
17
<PAGE>
Chase Vista Select Equity Income Fund
as of October 31, 1998
(unaudited)
How the Fund Performed
Chase Vista Select Equity Income Fund, which seeks to provide current income
plus capital growth by investing primarily in income-producing equity
securities, had a total return of 7.62% for the one-year period ended October
31, 1998.
How the Fund Was Managed
Despite a volatile stock market and a lackluster showing by real estate
investment trusts (REITs), the Fund posted a reasonable rate of return, mainly
due to key allocation decisions made by management.
Early in the period, the Fund enjoyed good investment results from its exposure
to cable stocks, most notably Liberty Media and Telecommunications Inc.
Consumer cyclicals also contributed positively to performance, with Chrysler
recording solid gains.
Throughout the first nine months of the fiscal year, the Fund benefited from
its exposure to financial stocks. These securities rallied thanks in large part
to a general decline in long-term interest rates and increased merger and
acquisition activity within the sector.
Energy stocks, which were negatively affected by falling oil prices, weighed
heavily on the Fund's performance. Our investments in the financial sector
during the market's summer selloff also detracted from investment results,
though many of these stocks showed signs of recovering as the period came to a
close.
Some of the better performing stocks during the fiscal year included American
Express, a global financial service firm; Freddie Mac, a quasi-government
agency that provides money to the mortgage market; and Philip Morris, a leading
food and tobacco producer.
Where the Fund May Be Headed
Looking ahead, the Fund is positioned for a modestly slowing economy, with
overweghtings in defensive stocks, such as utilities and REITs. These
securities have the potential to perform well regardless of the economic
climate. As always, we will continue to look for companies that, in our
judgment, offer good relative value compared to the market. Over time, this
strategy has served shareholders well, as evidenced by our relatively strong
performance compared to our peers during the last three- and five-year periods.
18
<PAGE>
Chase Vista Select Equity Income Fund
as of October 31, 1998
(unaudited)
How Much of the Fund Was Invested
[Pie Chart]
Cash (0.4%)
Investments (99.6%)
What the Fund Invested In
Percentage of Total Portfolio Investments
[Pie Chart]
Basic Materials (2.25%)
Capital Goods (3.32%)
Consumer Cyclicals (15.03%)
Energy (5.65%)
Financial (27.13%)
Health Care (8.30%)
REITs (8.72%)
Technology (6.01%)
U.S. Government Agency (3.29%)
Utilities (20.30%)
Top Ten Equity Holdings
1. Federal Home Loan Mortgage Corp. (4.34%) The Corporation supplies lenders
with the money to make mortgages and packages them into marketable
securities.
2. Philip Morris Companies, Inc. (3.85%) A consumer packaged goods company .
The Company's products include "Bull's Eye," "Breakstone's," "Kraft" and
"Marlboro" cigarettes, "Cracker Barrel" and "Polly-o" cheeses, "Miller"
and "Milwaukee's Best" beer.
3. BankAmerica Corp. (3.07%) Provides retail banking services, asset
management, financial products, corporate finance, specialized finance,
capital markets and financial services.
4. General Dynamics Corp. (2.87%) Manufactures defense products. The company
designs and builds nuclear submarines for the United States Navy and
performs overhaul, repair work and engineering services.
5. Houston Industries, Inc. (Preferred) (2.53%) A diversified international
energy services company. The Company generates, transmits, distributes,
and sells electric energy.
6. SBC Communications, Inc. (2.49%) A telecommunications company with wireless
customers. The Company offers local and long-distance telephone service,
wireless communications, paging and Internet access.
7. K-Mart Financing, Inc. (Preferred) (2.39%) A statutory business trust.
Exists for the sole purpose of issuing the Convertible Preferred
Securities and Common Securities.
8. MCI WorldCom, Inc. (2.38%) Provides facilities-based and fully
integrated local, long distance, international, and Internet services.
9. Public Storage, Inc. (2.27%) A real-estate investment trust that invests
primarily in existing mini-warehouses, self-service facilities which
offer storage space for personal and business use.
10. Schering-Plough Corp. (2.22%) Discovers, develops, manufactures, and
markets pharmaceutical and health care products. The Company currently
markets allergy/respiratory products, anti-infective and anti-cancer
products, dermatologicals, and other health care products.
Top 10 equity holdings comprised 28.41% of Fund's market value of investments.
Fund holdings are subject to change at any time.
19
<PAGE>
Chase Vista Select Equity Income Fund
as of October 31, 1998
(unaudited)
Average Annual Total Returns+
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the stock markets, tends to
be more volatile than the long-term trend.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1 Year 5 Years 10 Years
------------- -------------- ---------------
Select Equity Income 7.62% 15.54% 14.79%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
+ The quoted performance of Chase Vista Select Equity Income Fund includes
performance of a predecessor account for the period dating back to 10/31/88 and
prior to the Fund's commencement of operations on 1/1/97. 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.
20
<PAGE>
Chase Vista Select Equity Income Fund
as of October 31, 1998
(unaudited)
10-Year Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista Select Equity Income Fund compared to its
key benchmarks. This is where you see the Fund's long-term trend. This chart is
for illustrative purposes only.
[Line Graph]
Chase Vista
Select Equity
Income Fund
<TABLE>
<CAPTION>
Chase Vista S&P Lipper
Select Equity 500 Equity Income
Income Fund Index Funds Average
------------- ----- -------------
<S> <C> <C> <C>
1988 $10,000 $10,000 $10,000
1989 11,762.5 12,635.1 11,979
1990 10,684.5 11,691.3 10,585.3
1991 14,198 15,597.2 13,897.3
1992 15,676.5 17,148.5 15,257.5
1993 19,305.3 19,707.9 18,248.6
1994 19,066.5 20,468.4 18,432.8
1995 23,037.1 25,871 21,779.1
1996 28,260.4 32,094.8 26,330.7
1997 36,947.5 42,389.7 33,462.8
1998 39,763.6 51,716.8 36,679.1
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. 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 Chase Vista Select Equity Income Fund, Standard & Poor's 500 Index and the
Lipper Equity Income Funds Average for the ten years ended 10/31/98. The
performance of the Fund assumes reinvestment of all dividends and capital
gains. The performance of the average and the index does not include a sales
charge and has been adjusted to reflect the reinvestment of all dividends and
capital gains on the securities included in the benchmark.
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
reflects reinvestment of dividends. An individual cannot invest in the index.
The Lipper Equity Income Funds Average represents the average performance of a
universe of 210 actively managed equity income 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 quoted performance of Chase Vista Select Equity Income Fund includes
performance of a predecessor account for the period dating back to 10/31/88 and
prior to the Fund's commencement of operations on 1/1/97. 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.
21
<PAGE>
Chase Vista Select Equity Income Fund
Portfolio of Investments October 31, 1998
<TABLE>
<CAPTION>
Shares Issuer Value
- --------------------------------------------------------------
<S> <C> <C>
Long-Term Investments -- 93.0%
- --------------------------------------------------------------
<S> <C> <C>
Common Stock -- 86.5%
------------------------------------
Aerospace -- 3.3%
450,000 General Dynamics Corp. $ 26,634,375
89,500 Sundstrand Corp. 4,200,906
------------
30,835,281
------------
Automotive -- 0.8%
150,000 Chrysler Corp. 7,218,750
------------
Banking -- 8.6%
495,850 BankAmerica Corp. 28,480,384
170,000 BB&T Corp. 6,066,875
168,000 Cullen/Frost Bankers, Inc. 8,946,000
129,000 Firstar Corp. 7,320,750
80,000 National City Corp. 5,145,000
200,000 North Fork Bancorporation, Inc. 3,975,000
140,000 Southtrust Corp. 5,110,000
36,000 Star Banc Corp. 2,722,500
215,000 Zions Bancorporation 11,408,438
------------
79,174,947
------------
Chemicals -- 1.4%
184,000 Engelhard Corp. 3,864,000
250,000 Imperial Chemical Industries, PLC,
ADR (United Kingdom) 9,062,500
------------
12,926,500
------------
Computer Software -- 3.4%
472,000 American Management Systems, Inc.* 14,484,500
198,750 Computer Associates International 7,825,781
320,000 Oracle Corp.* 9,460,000
------------
31,770,281
------------
Computers/Computer Hardware -- 2.0%
250,000 Compaq Computer Corp. 7,906,250
77,500 Gateway 2000 Inc.* 4,325,469
250,000 Seagate Technology, Inc.* 6,593,750
------------
18,825,469
------------
Consumer Products -- 6.5%
300,000 Avon Products, Inc. 11,906,250
300,000 Fortune Brands, Inc. 9,918,750
</TABLE>
See notes to financial statements.
22
<PAGE>
Chase Vista Select Equity Income Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ---------------------------------------------------------------------
<S> <C> <C>
Long-Term Investments -- (continued)
700,000 Philip Morris Companies, Inc. $ 35,787,500
100,000 Twinlab Corp.* 2,218,750
------------
59,831,250
------------
Entertainment/Leisure -- 0.4%
100,000 Carnival Corp., Class A 3,237,500
------------
Financial Services -- 7.8%
150,000 American Express Co. 13,256,250
187,417 Associates First Capital Corp., Class A 13,212,899
700,000 Federal Home Loan Mortgage Corp. 40,250,000
150,000 Household International, Inc. 5,484,375
------------
72,203,524
------------
Health Care/Health Care Services -- 2.0%
500 Columbia/HCA Healthcare Corp. 10,500
830,000 HEALTHSOUTH Corp.* 10,063,750
300,000 Tenet Healthcare Corp.* 8,381,250
------------
18,455,500
------------
Insurance -- 4.1%
352,702 Allstate Corp. 15,188,230
123,000 Equitable Companies, Inc. 6,027,000
150,000 Exel LTD, Class A (Bermuda) 11,465,625
400,000 Reliance Group Holdings, Inc. 5,575,000
------------
38,255,855
------------
Metals/Mining -- 0.9%
133,600 Reynolds Metals Co. 8,007,650
------------
Oil & Gas -- 5.7%
225,073 British Petroleum PLC, ADR
(United Kingdom) 19,904,893
250,000 Exxon Corp. 17,812,500
300,000 Royal Dutch Petroleum Co.,
New York Registered Shares
(Netherlands) 14,775,000
------------
52,492,393
------------
Pharmaceuticals -- 6.3%
200,000 American Home Products Corp. 9,750,000
300,000 Glaxo Wellcome PLC (United
Kingdom) 18,675,000
</TABLE>
See notes to financial statements.
23
<PAGE>
Chase Vista Select Equity Income Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- --------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
200,000 Schering-Plough Corp. $20,575,000
150,000 SmithKline Beecham PLC, ADR
(United Kingdom) 9,562,500
-----------
58,562,500
-----------
Photographic Equipment -- 0.5%
55,000 Eastman Kodak Co. 4,262,500
-----------
Real Estate Investment Trust -- 8.8%
250,000 Beacon Capital Partners Inc.#* 5,000,000
895,800 Brandywine Realty Trust 16,012,425
182,600 Duke Realty Investments, Inc. 4,359,575
390,000 Equity Residential Properties Trust 16,380,000
508,727 Healthcare Realty Trust, Inc. 11,923,289
250,000 Manufactured Home Communities,
Inc. 6,234,375
789,000 Public Storage, Inc. 21,056,437
-----------
80,966,101
-----------
Retailing -- 7.1%
350,000 Albertson's, Inc. 19,446,875
234,037 Federated Department Stores* 8,995,797
369,132 Kroger Co.* 20,486,826
500,000 Office Depot, Inc.* 12,500,000
140,000 The Limited, Inc. 3,587,500
-----------
65,016,998
-----------
Telecommunications -- 10.5%
300,000 AT&T Corp. 18,675,000
300,000 Bell Atlantic Corp. 15,937,500
215,000 BellSouth Corp. 17,159,688
400,000 MCI WorldCom, Inc.* 22,100,000
500,000 SBC Communications, Inc. 23,156,250
-----------
97,028,438
-----------
Utilities -- 6.4%
250,000 CMS Energy Corp. 11,015,625
175,000 Consolidated Edison, Inc. 8,771,875
250,000 DQE, Inc. 9,859,375
125,000 Duke Energy Corp. 8,085,938
300,000 LG&E Energy Corp. 7,912,500
180,000 Pinnacle West Capital Corp. 7,886,250
</TABLE>
See notes to financial statements.
24
<PAGE>
Chase Vista Select Equity Income Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------------------------------------------------------------------
Long-Term Investments -- (continued)
- ----------------------------------------------------------------------
<S> <C> <C>
150,000 Unicom Corp. $ 5,653,125
------------
59,184,688
------------
Total Common Stock 798,256,125
------------
(Cost $666,010,079)
Convertible Preferred Stock -- 5.9%
------------------------------------
Financial Services -- 2.4%
400,000 K-Mart Financing Inc., 7.75%,
06/15/16 Series 22,175,000
------------
Telecommunications -- 1.0%
40,000 Viacom International (TCI Pacific),
5.00%, 7/31/06 Series 8,800,000
------------
Utilities -- 2.5%
290,000 Houston Industries, Inc., 7.00%,
07/01/00 Series 23,508,125
------------
Total Convertible Preferred Stock 54,483,125
------------
(Cost $50,419,842)
Principal
Amount
Convertible Corporate Notes & Bonds -- 0.6%
-------------------------------------------
Computers/Computer Hardware -- 0.6%
$3,000,000 Solectron Corp.# 6.00%, 03/01/06 5,200,710
(Cost $3,136,622)
- ----------------------------------------------------------------------
Total Long-Term Investments 857,939,960
(Cost $719,566,543)
- ----------------------------------------------------------------------
Short-Term Investments -- 7.6%
- ----------------------------------------------------------------------
U.S. Government Agency Obligations -- 3.3%
------------------------------------------
30,528,000 Federal Home Loan Bank, Discount
Note, 5.40%,11/02/98 30,528,000
------------
(Cost $30,528,000)
</TABLE>
See notes to financial statements.
25
<PAGE>
Chase Vista Select Equity Income Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------
Short-Term Investments -- (continued)
- ------------------------------------------------------------
<S> <C> <C>
Commercial Paper -- 4.3%
--------------------------------
Insurance -- 4.3%
$40,000,000 General American Life Insurance
Co., 5.77%, 03/01/99 $ 40,000,000
(Cost $40,000,000)
============================================================
Total Short-Term Investments 70,528,000
(Cost $70,528,000)
- ------------------------------------------------------------
Total Investments -- 100.6% $928,467,960
(Cost $790,094,543)
============================================================
</TABLE>
Index
* -- Non income producing security.
# -- Security may only be sold to qualified institutional buyers.
ADR -- American Depository Receipt.
GDR -- Global Depository Receipt.
@ -- All or a portion of this security is segregated.
FRN -- Floating Rate Note: The maturity date shown is the next interest reset
date; the rate shown is the rate in effect at October 31, 1998.
See notes to financial statements.
26
<PAGE>
Chase Vista Select Large Cap Equity Fund
as of October 31, 1998
(unaudited)
Fund Facts
<TABLE>
<S> <C>
Objective: Capital growth
Primary investments: Large cap common stocks
Suggested investment
time frame: Long-term
Market benchmark: S&P 500 Index
Lipper funds category: Growth Funds Average
Inception date: 1/1/97
Newspaper symbol: LgCapEq
Net assets: $176.8 million
</TABLE>
Investment Style/Market Cap
- ----------------------------
| | | |
| X | | | Large
| | | |
- ----------------------------
| | | |
| | | | Med.
| | | |
- ----------------------------
| | | |
| | | | Small
| | | |
- ----------------------------
Value Blend Growth
27
<PAGE>
Chase Vista Select Large Cap Equity Fund
as of October 31, 1998
(unaudited)
How the Fund Performed
Chase 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 16.58% (Class A shares, without sales charges) for the one-year
period ended October 31, 1998.
How the Fund Was Managed
Superior stock selection and good sector rotation contributed significantly to
the Fund's return. A large disparity in returns between the largest stocks that
comprise the Standard & Poor's 500 Composite Index and the broader market
detracted from investment results.
Early in the period, the Fund's exposure to defensive industries, such as
media, utilities and supermarkets, protected shareholder capital, as most
stocks declined sharply due to the Asian economic crisis. The Fund used the
market pullback to increase its exposure to attractively priced, high-quality
stocks, many of which performed well later in the fiscal year.
The Fund's decision to increase its investment in economically sensitive stocks
in early 1998 bolstered results, as the impact of Asia's problems began to
subside. Industrial stocks, such as Ingersoll Rand and John Deere, and consumer
stocks, such as Dayton Hudson and Federated Stores, were among our better
performers during this period.
Technology stocks also helped performance. EMC, a data storage company that has
performed well for several years, rose sharply, thanks to increased product
demand. Additionally, Texas Instruments and Xerox contributed favorably to the
Fund.
Several decisions made prior to the stock market selloff in August proved
beneficial to shareholders. We increased our exposure to defensive issues.
Supermarket stocks such as Kroger, American Stores and Safeway, turned in solid
gains. We also took profits in several cyclical stocks and reduced our exposure
to financial stocks, which came under pressure due to concerns over global
liquidity ignited by the Russian financial crisis.
Where the Fund May Be Headed
The environment for large cap stocks is favorable. Economic uncertainty outside
the U.S. could result in earnings surprises for some U.S. companies and lead to
further market volatility. However, we believe the market should hold up well
provided interest rates stay low and inflation remains benign. Given this
backdrop, we intend to focus on companies with the potential to grow their
earnings regardless of prevailing economic and market conditions. As is the
case in this type of environment, stock selection will be critically important
in helping the Fund achieve good relative performance.
28
<PAGE>
Chase Vista Select Large Cap Equity Fund
as of October 31, 1998
(unaudited)
How Much of the Fund Was Invested
[Pie Chart]
Cash (0.1%)
Investments (99.9%)
What the Fund Invested In
Percentage of Total Portfolio Investments
[Pie Chart]
Basic Materials (3.46%)
Capital Goods (6.47%)
Consumer Cyclicals (25.30%)
Consumer Staples (2.80%)
Energy (7.26%)
Financial (14.20%)
Health Care (9.42%)
REITs (1.57%)
Technology (11.05%)
Transportation (1.17%)
U.S. Government Agency Obligations (4.73%)
Utilities (12.57%)
Top Ten Equity Holdings
1. EMC Corp. (3.21%) Designs, manufactures, markets, and supports products
that store, manage and protect information from all major computing
environments, including "UNIX" and "Windows NT."
2. Philip Morris Companies, Inc. (2.36%) A consumer packaged goods company .
The Company's products include "Bull's Eye," "Breakstone's," "Kraft" and
"Marlboro" cigarettes, "Cracker Barrel" and "Polly-o" cheeses, "Miller"
and "Milwaukee's Best" beer.
3. Kroger Co. (2.19%) Operates supermarkets and convenience stores and
processes food. Also operates food processing facilities which supply
private label products to the company's supermarkets.
4. BellSouth Corp. (1.93%) Provides domestic and international wireless
telecommunications services, systems and products mainly to the
southeastern U.S.
5. Comcast Corp., Special Class A (1.83%) Develops, manages and operates wired
telecommunications. It's businesses include cable television, telephone
services and wireless telecommunications.
6. Federal Home Loan Mortgage Corp. (1.82%) The Corporation supplies lenders
with the money to make mortgages and packages into marketable securities.
7. MCI WorldCom, Inc. (1.73%) Provides facilities-based and fully
integrated local, long distance, international, and Internet services.
8. Pharmacia & Upjohn, Inc. (1.70%) Manufactures and markets a wide assortment
of subscription and over-the-counter products such as anticancer drugs,
contraceptives, medicines for pain relief and rheumatoid arthritis.
9. Xerox Corp. (1.64%) Develops, manufactures, services and finances a
complete range of document processing products and provides network
management, consulting and integration services for medium and large
companies.
10. BankAmerica Corp. (1.63%) Provides retail banking services, asset
management, financial products, corporate finance, specialized finance,
capital markets and financial services.
Top 10 equity holdings comprised 20.03% of the Portfolio's market value of
investments. Fund holdings are subject to change at any time.
29
<PAGE>
Chase Vista Select Large Cap Equity Fund
as of October 31, 1998
(unaudited)
Average Annual Total Returns+
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the stock markets, tends to
be more volatile than the long-term trend.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1 Year 5 Years 10 Years
-------------- -------------- ---------------
Select Large Cap Equity 16.58% 17.99% 15.70%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
+ The quoted performance of Chase Vista Select Large Cap Equity Fund includes
performance of a predecessor account for the period dating back to 10/31/88 and
prior to the Fund's commencement of operations on 1/1/97. 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.
30
<PAGE>
Chase Vista Select Large Cap Equity Fund
as of October 31, 1998
(unaudited)
10-Year Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista Select Large Cap Equity Fund compared to
its key benchmarks. This is where you see the Fund's long-term trend. This
chart is for illustrative purposes only.
[Line graph]
<TABLE>
<CAPTION>
Chase Vista S&P Lipper
Select Large 500 Growth Funds
Cap Equity Fund Index Average
--------------- ----- -------------
<S> <C> <C> <C>
1988 $10,000 $10,000 $10,000
1989 12,457.2 12,635.1 12,459.1
1990 11,868.1 11,691.3 11,031.2
1991 15,613.7 15,597.2 15,620.2
1992 16,947.7 17,148.5 16,942
1993 18,807 19,707.9 19,958.4
1994 19,367.1 20,468.4 20,348.5
1995 23,031.9 25,871 24,905.8
1996 27,992.4 32,094.8 29,581.2
1997 36,903.8 42,389.7 37,584.9
1998 43,021.4 51,716.8 41,059.1
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. 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 Chase Vista Select Large Cap Equity Fund, the Standard & Poor's 500 Index
and the Lipper Growth Funds Average for the ten years ended 10/31/98. The
performance of the Fund assumes reinvestment of all dividends and capital
gains. The performance of the average and the index does not include a sales
charge and has been adjusted to reflect the reinvestment of all dividends and
capital gains on the securities included in the benchmark.
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
reflects reinvestment of dividends. An individual cannot invest in the index.
The Lipper Growth Funds Average represents the average performance of a
universe of 943 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 quoted performance of Chase Vista Select Large Cap Equity Fund includes
performance of a predecessor account for the period dating back to 10/31/88 and
prior to the Fund's commencement of operations on 1/1/97. 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.
31
<PAGE>
Chase Vista Select Large Cap Equity Fund
Portfolio of Investments October 31, 1998
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------------------------------------------------------
Long-Term Investments -- 95.8%
- ----------------------------------------------------------
<S> <C> <C>
Common Stock -- 95.8%
-----------------------------------
Aerospace -- 1.3%
40,000 General Dynamics Corp. $2,367,500
----------
Airlines -- 0.8%
20,000 AMR Corp.* 1,340,000
----------
Automotive -- 1.4%
25,000 Ford Motor Co. 1,356,250
19,000 General Motors Corp. 1,198,188
----------
2,554,438
----------
Banking -- 6.3%
50,368 BankAmerica Corp. 2,893,012
32,000 Comerica, Inc. 2,064,000
46,700 Firstar Corp. 2,650,225
22,000 National City Corp. 1,414,875
12,000 SunTrust Banks, Inc. 836,250
33,000 U.S. Bancorp 1,204,500
----------
11,062,862
----------
Biotechnology -- 0.7%
17,000 Biogen, Inc.* 1,181,500
----------
Broadcasting -- 0.9%
56,500 CBS Corp. 1,578,469
----------
Cabletelevision -- 2.9%
66,000 Comcast Corp., Special Class A 3,258,750
44,534 Tele-Communications, TCI Group,
Class A* 1,875,995
----------
5,134,745
----------
Chemicals -- 1.0%
23,000 Air Products and Chemicals, Inc. 868,250
10,000 Dow Chemical Co. 936,250
----------
1,804,500
----------
Computer Software -- 2.3%
40,500 Computer Associates International 1,594,688
19,000 Computer Sciences Corp.* 1,002,250
47,000 Oracle Corp.* 1,389,437
----------
3,986,375
----------
</TABLE>
See notes to financial statements.
32
<PAGE>
Chase Vista Select Large Cap Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
Computers/Computer Hardware -- 8.9%
40,500 Compaq Computer Corp.* $ 1,280,813
21,400 Dell Computer Corp.* 1,404,375
88,600 EMC Corp.* 5,703,625
25,000 Gateway 2000 Inc.* 1,395,313
29,000 Ingram Micro, Inc., Class A* 1,319,500
35,000 Seagate Technology, Inc.* 923,125
38,000 Sun Microsystems, Inc.* 2,213,500
22,000 Texas Instruments Inc. 1,406,625
------------
15,646,876
------------
Consumer Products -- 3.7%
13,000 Colgate-Palmolive Co. 1,148,875
38,000 Fortune Brands, Inc. 1,256,375
82,000 Philip Morris Companies, Inc. 4,192,250
------------
6,597,500
------------
Diversified -- 0.7%
20,000 Tyco International LTD (Bermuda) 1,238,750
------------
Entertainment/Leisure -- 3.9%
40,000 Carnival Corp., Class A 1,295,000
50,932 Tele-Communications TCI Ventures
Group, Class A* 948,608
27,000 Time Warner, Inc. 2,505,938
35,000 Viacom, Inc. Class B* 2,095,625
------------
6,845,171
------------
Environmental Services -- 0.9%
36,500 Waste Management, Inc. 1,647,062
------------
Financial Services -- 4.4%
12,000 American Express Co. 1,060,500
28,159 Associates First Capital Corp., Class A 1,985,210
56,200 Federal Home Loan Mortgage Corp. 3,231,500
23,000 Morgan Stanley, Dean Witter,
Discover and Co. 1,489,250
------------
7,766,460
------------
Food/Beverage Products -- 2.8%
46,000 PepsiCo Inc. 1,552,500
35,000 Quaker Oats Co. 2,067,187
</TABLE>
See notes to financial statements.
33
<PAGE>
Chase Vista Select Large Cap Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------
<S> <C> <C>
18,000 Unilever NV, ADR (Netherlands) $ 1,354,500
------------
4,974,187
------------
Health Care/Health Care Services -- 3.4%
50,000 HBO & Co. 1,312,500
130,000 HEALTHSOUTH Corp.* 1,576,250
60,000 Tenet Healthcare Corp.* 1,676,250
19,500 Wellpoint Health Networks, Inc.,
Class A* 1,435,687
------------
6,000,687
------------
Insurance -- 3.6%
50,000 ACE, LTD (Bermuda) 1,693,750
66,000 Allstate Corp. 2,842,125
24,500 Exel LTD, Class A (Bermuda) 1,872,719
------------
6,408,594
------------
Manufacturing -- 2.8%
38,000 Ingersoll-Rand Co. 1,919,000
33,000 Johnson Controls, Inc. 1,856,250
33,700 Parker Hannifin Corp. 1,204,775
------------
4,980,025
------------
Media/Advertising -- 0.7%
25,500 Omnicom Group, Inc. 1,260,656
------------
Metals/Mining -- 0.9%
20,000 Aluminum Co. of America (ALCOA) 1,585,000
------------
Office/Business Equipment -- 1.6%
30,000 Xerox Corp. 2,906,250
------------
Oil & Gas -- 7.3%
12,500 British Petroleum PLC, ADR
(United Kingdom) 1,105,469
72,000 Coastal Corp. 2,538,000
29,000 Halliburton Co. 1,042,188
36,000 Mobil Corp. 2,724,750
21,000 Schlumberger, LTD 1,102,500
34,000 Texaco, Inc. 2,016,625
44,200 USX-Marathon Group 1,444,787
34,000 Williams Companies, Inc. 932,875
------------
12,907,194
------------
</TABLE>
See notes to financial statements.
34
<PAGE>
Chase Vista Select Large Cap Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- --------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
Packaging -- 0.9%
51,000 Owens-Illinois, Inc.* $ 1,558,687
------------
Paper/Forest Products -- 0.7%
38,500 Willamette Industries, Inc. 1,193,500
------------
Pharmaceuticals -- 5.4%
10,000 Bristol-Myers Squibb Co. 1,105,625
10,000 Pfizer, Inc. 1,073,125
57,000 Pharmacia & Upjohn, Inc. 3,017,437
25,000 Schering-Plough Corp. 2,571,875
28,000 SmithKline Beecham PLC, ADR
(United Kingdom) 1,785,000
------------
9,553,062
------------
Photographic Equipment -- 0.8%
18,000 Eastman Kodak Co. 1,395,000
------------
Printing & Publishing -- 1.1%
67,000 New York Times Company, Class A 1,892,750
------------
Real Estate Investment Trust -- 1.6%
32,344 Equity Office Properties Trust 776,256
20,000 Equity Residential Properties Trust 840,000
44,000 Public Storage, Inc. 1,174,250
------------
2,790,506
------------
Retailing -- 9.1%
40,000 American Stores Co. 1,302,500
16,500 Costco Companies, Inc., Class A* 936,375
44,000 CVS Corp. 2,010,250
50,000 Dayton-Hudson Corp. 2,118,750
36,000 Federated Department Stores* 1,383,750
70,000 Kroger Co.* 3,885,000
65,000 Office Depot, Inc.* 1,625,000
58,000 Safeway, Inc.* 2,773,125
------------
16,034,750
------------
Shipping/Transportation -- 0.4%
24,000 Burlington Northern Santa Fe 741,000
------------
Telecommunications -- 8.3%
28,000 AirTouch Communications, Inc.* 1,568,000
15,000 AT&T Corp. 933,750
24,000 Bell Atlantic Corp. 1,275,000
</TABLE>
See notes to financial statements.
35
<PAGE>
Chase Vista Select Large Cap Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- -----------------------------------------------------------------------
Long-Term Investments -- (continued)
- -----------------------------------------------------------------------
<S> <C> <C>
43,000 BellSouth Corp. $ 3,431,938
28,000 GTE Corp. 1,643,250
55,500 MCI WorldCom, Inc.* 3,066,375
22,000 Sprint Corp. 1,688,500
19,000 Tellabs, Inc. 1,045,000
------------
14,651,813
------------
Utilities -- 4.3%
46,000 CMS Energy Corp. 2,026,875
31,000 Consolidated Edison, Inc. 1,553,875
20,000 Duke Energy Corp. 1,293,750
45,000 FPL Group Inc. 2,815,312
------------
7,689,812
------------
Total Common Stock 169,275,681
------------
(Cost $116,894,761)
Rights --
- -----------------------------------------------------------------------
Computers/Computer Hardware -- 0.0%
22,000 Texas Instruments Inc., Poison Pill,
Expires 06/18/08 0
(Cost $0)
=======================================================================
Total Long-Term Investments 169,275,681
(Cost $116,894,761)
=======================================================================
Principal
Amount
- -----------------------------------------------------------------------
Short-Term Investments -- 4.8%
- -----------------------------------------------------------------------
U.S. Government Agency Obligations -- 4.8%
$8,410,000 Federal Home Loan Bank, Discount
Note, 5.40%, 11/02/98 8,410,000
(Cost $8,410,000)
=======================================================================
Total Investments -- 100.6% $177,685,681
(Cost $125,304,761)
=======================================================================
</TABLE>
Index
* -- Non income producing security.
# -- Security may only be sold to qualified institutional buyers.
ADR -- American Depository Receipt.
GDR -- Global Depository Receipt.
@ -- All or a portion of this security is segregated.
FRN -- Floating Rate Note: The maturity date shown is the next interest reset
date; the rate shown is the rate in effect at October 31, 1998.
See notes to financial statements.
36
<PAGE>
Chase Vista Select Large Cap Growth Fund
as of October 31, 1998
(unaudited)
Fund Facts
<TABLE>
<S> <C>
Objective: Capital growth
Primary investments: Large cap common stocks
Suggested investment
time frame: Long-term
Market benchmark: S&P 500 Index
Lipper funds category: Growth Funds Average
Inception date: 1/1/97
Newspaper symbol: LgCapGr
Net assets: $654.0 million
</TABLE>
Investment Style/Market Cap
- ----------------------------
| | | |
| | | X | Large
| | | |
- ----------------------------
| | | |
| | | | Med.
| | | |
- ----------------------------
| | | |
| | | | Small
| | | |
- ----------------------------
Value Blend Growth
37
<PAGE>
Chase Vista Select Large Cap Growth Fund
as of October 31, 1998
(unaudited)
How the Fund Performed
Chase 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 29.12% for the one-year period ended October 31, 1998.
How the Fund Was Managed
The Fund enjoyed good performance from stocks of high-quality companies with
superior competitive business models that generated strong earnings growth. The
securities of these companies recorded solid gains, thanks largely to the
flight to quality among investors amidst concerns of a slowing global economy.
The Fund's overweighting in technology bolstered investment results, as stocks
in this sector performed well throughout much of the period. Some of the Fund's
top picks in this group were Microsoft, Dell Computer, Intel and EMC.
Management's decision to trim its exposure to technology prior to the market's
summer selloff also had a positive effect on the Fund.
In other sectors, the Fund received good performance from a number of healthcare
stocks, most notably Pfizer, Warner-Lambert, Bristol-Myers, Merck and Abbott
Labs. Conglomerates, such as General Electric, Tyco International and ITW, also
registered solid gains. Finally, financial stocks, including AIG and General Re,
and retailers, such as Wal-Mart, posted favorable results for shareholders.
The general pullback in stock prices at the start of the period, and in August,
detracted from performance. Two stocks, in particular, that hindered the Fund's
investment results were Procter & Gamble and Dover. Procter & Gamble's earnings
fell short of analysts' estimates in the second quarter of 1998, while Dover's
earnings missed the mark in the third quarter of this year.
Where the Fund May Be Headed
Our outlook for the stock market and the types of securities in which the Fund
invests is positive. The Federal Reserve's decision to cut both the federal
funds rate and the discount rate between Federal Open Market Committee meetings
on October 15 suggests that it will be vigilant in keeping the U.S. economy
from a major slowdown in the months ahead. Furthermore, the Fed's latest move
has changed investor sentiment markedly. Since the global economic concerns
remain a threat to the markets, we believe investors will continue to favor
high-quality, well-established companies with strong business models in the
months ahead. We intend to use any meaningful downturn in the market as an
opportunity to purchase attractively priced stocks whose long-term growth
prospects are, in our judgment, greater than the overall market.
38
<PAGE>
Chase Vista Select Large Cap Growth Fund
as of October 31, 1998
(unaudited)
How Much of the Fund Was Invested
[Pie Chart]
Cash (0.3%)
Investments (99.7%)
What the Fund Invested In
Percentage of Total Portfolio Investments
[Pie Chart]
Capital Goods (9.27%)
Consumer Cyclicals (22.61%)
Consumer Staples (4.21%)
Energy (3.89%)
Financial (13.34%)
Health Care (15.89%)
Technology (25.98%)
Utilities (2.84%)
Other (1.97%)
Top Ten Equity Holdings
1. Warner-Lambert Co. (4.31%) Discovers, develops, manufactures, and markets
pharmaceutical, consumer health-care and confectionary products.
2. Dell Computer Corp. (4.01%) Designs, develops, manufactures and supports a
variety of computer systems, including desktops, notebooks, and network
services.
3. Tyco International LTD (Bermuda) (3.79%) A diversified manufacturing and
service company. The Company manufactures and installs fire protection
systems, and provides electronic and security services.
4. Pfizer, Inc. (3.77%) A research based, global health care company
specializing in health care, animal health, and consumer health care. The
Company's products include bone and joint devices, anti-inflammatory
medicines, and personal care products.
5. EMC Corp. (3.45%) Designs, manufactures, markets, and supports products
that store, manage and protect information from all major computing
environments, including "UNIX" and "Windows NT."
6. International Business Machines Corp. (3.18%) Develops, manufactures and
sells information processing products. The Company's products include
computers and micro electronic technology.
7. Illinois Tool Works, Inc. (2.94%) Manufactures construction fasteners and
packaging systems. The Company produces plastic and metal fasteners,
consumer and industrial packaging systems.
8. General Electric Co. (2.88%) A diversified manufacturing, technology and
services company. Operations include appliance manufacturing, capital
services, information services, and electrical distribution.
9. Walgreen Co. (2.61%) Operates retail drugstores. The Company's stores sell
prescription and non- prescription drugs, general merchandise, liquor and
beverages, cosmetics, and tobacco products.
10. Microsoft Corp. (2.43%) Develops, manufactures, licenses and supports
computer software products.
Top 10 equity holdings comprised 33.37% of the Portfolio's market value of
investments. Fund holdings are subject to change at any time.
39
<PAGE>
Chase Vista Select Large Cap Growth Fund
as of October 31, 1998
(unaudited)
Average Annual Total Returns+
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the stock markets, tends to
be more volatile than the long-term trend.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1 Year 5 Years 10 Years
-------------- -------------- ---------------
Select Large Cap Growth 29.12% 20.80% 16.43%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
+ The quoted performance of Chase Vista Select Large Cap Growth Fund includes
performance of a predecessor account for the period dating back to 10/31/88 and
prior to the Fund's commencement of operations on 1/1/97. 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.
40
<PAGE>
Chase Vista Select Large Cap Growth Fund
as of October 31, 1998
(unaudited)
10-Year Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista Select Large Cap Growth Fund compared to
its key benchmarks. This is where you see the Fund's long-term trend. This
chart is for illustrative purposes only.
[Line Graph]
<TABLE>
<CAPTION>
Chase Vista
Select S&P Lipper
Large Cap 500 Growth Funds
Growth Fund Index Average
----------- ----- ------------
<S> <C> <C> <C>
1988 $10000 $10,000 $10,000
1989 11,961 12,635.1 12,459.1
1990 11,236.4 11,691.3 11,031.2
1991 14,447.2 15,597.2 15,620.2
1992 16,496.5 17,148.5 16,942
1993 17,798.1 19,707.9 19,958.4
1994 18,537.1 20,468.4 20,348.5
1995 23,386.3 25,871 24,905.8
1996 26,915.6 32,094.8 29,581.2
1997 35,483.5 42,389.7 37,584.9
1998 45,815.6 51,716.8 41,059.1
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. 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 Chase Vista Select Large Cap Growth Fund, the Standard & Poor's 500 Index
and the Lipper Growth Funds Average for the ten years ended 10/31/98. The
performance of the Fund assumes reinvestment of all dividends and capital
gains. The performance of the average and the index does not include a sales
charge and has been adjusted to reflect the reinvestment of all dividends and
capital gains on the securities included in the benchmark.
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
reflects reinvestment of dividends. An individual cannot invest in the index.
The Lipper Growth Funds Average represents the average performance of a
universe of 943 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 quoted performance of Chase Vista Select Large Cap Growth Fund includes
performance of a predecessor account for the period dating back to 10/31/88 and
prior to the Fund's commencement of operations on 1/1/97. 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.
41
<PAGE>
Chase Vista Select Large Cap Growth Fund
Portfolio of Investments October 31, 1998
<TABLE>
<CAPTION>
Shares Issuer Value
- -----------------------------------------------------------
Long-Term Investments -- 99.8%
- -----------------------------------------------------------
<S> <C> <C>
Common Stock -- 99.8%
-----------------------------------
Airlines -- 0.3%
25,000 AMR Corp.* $1,675,000
----------
Appliances & Household Durables -- 2.1%
175,000 Honeywell, Inc. 13,978,125
----------
Banking -- 3.1%
122,500 Bank One Corp. 5,987,187
75,000 First Virginia Banks, Inc. 3,421,875
50,000 Firstar Corp. 2,837,500
40,000 Mellon Bank Corp. 2,405,000
150,000 Norwest Corp. 5,578,125
----------
20,229,687
----------
Biotechnology -- 0.4%
35,000 Amgen, Inc.* 2,749,688
----------
Business Services -- 1.5%
100,000 Automatic Data Processing, Inc. 7,781,250
50,000 Avery Dennison Corp. 2,071,875
----------
9,853,125
----------
Chemicals -- 0.9%
125,000 Air Products and Chemicals, Inc. 4,718,750
50,000 Morton International, Inc. 1,243,750
----------
5,962,500
----------
Computer Software -- 5.8%
250,000 Cisco Systems, Inc.* 15,750,000
100,000 Computer Associates International 3,937,500
100,000 First Data Corp. 2,650,000
150,000 Microsoft Corp.* 15,881,250
----------
38,218,750
----------
Computers/Computer Hardware -- 13.6%
125,000 3Com Corp.* 4,507,812
275,000 Compaq Computer Corp.* 8,696,875
400,000 Dell Computer Corp.* 26,250,000
350,000 EMC Corp.* 22,531,250
100,000 Hewlett-Packard Co. 6,018,750
</TABLE>
See notes to financial statements.
42
<PAGE>
Chase Vista Select Large Cap Growth Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- -------------------------------------------------------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
140,000 International Business Machines
Corp. $ 20,781,250
------------
88,785,937
------------
Consumer Products -- 4.9%
100,000 Gillette Co. 4,493,750
170,000 Philip Morris Companies, Inc. 8,691,250
175,000 Procter & Gamble Co. 15,553,125
100,000 Service Corp. International 3,562,500
------------
32,300,625
------------
Diversified -- 6.3%
165,000 Corning Inc. 5,991,562
112,500 Crane Co. 3,241,406
100,000 Dover Corp. 3,175,000
100,000 Federal Signal Corp. 2,406,250
50,000 National Service Industries, Inc. 1,793,750
400,000 Tyco International LTD (Bermuda) 24,775,000
------------
41,382,968
------------
Electronics/Electrical Equipment -- 6.6%
215,000 General Electric Co. 18,812,500
50,000 Grainger (W.W.), Inc. 2,303,125
125,000 Intel Corp. 11,148,437
60,000 Molex Inc., Class A 1,961,250
60,000 Molex Inc. 2,141,250
125,000 Motorola, Inc. 6,500,000
------------
42,866,562
------------
Entertainment/Leisure -- 1.5%
300,000 Carnival Corp., Class A 9,712,500
------------
Financial Services -- 5.3%
75,000 American Express Co. 6,628,125
150,000 Charles Schwab Corp. 7,190,625
175,000 Citigroup, Inc. 8,235,938
35,000 Donaldson Lufkin & Jenrette* 1,251,250
125,000 Federal Home Loan Mortgage Corp. 7,187,500
40,000 Lehman Brothers Holding, Inc. 1,517,500
25,000 Morgan Stanley, Dean Witter,
Discover and Co. 1,618,750
</TABLE>
See notes to financial statements.
43
<PAGE>
Chase Vista Select Large Cap Growth Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------------------------------------------------------
Long-Term Investments -- (continued)
- ----------------------------------------------------------
<S> <C> <C>
30,000 Paine Webber Group, Inc. $ 1,003,125
------------
34,632,813
------------
Food/Beverage Products -- 4.6%
25,000 Anheuser-Busch Companies, Inc. 1,485,938
75,000 Bestfoods 4,087,500
175,000 Coca-Cola Co. 11,834,375
140,000 PepsiCo Inc. 4,725,000
50,000 Safeway, Inc.* 2,390,625
200,000 Sysco Corp. 5,387,500
------------
29,910,938
------------
Health Care/Health Care Services -- 0.3%
155,000 HEALTHSOUTH Corp.* 1,879,375
------------
Insurance -- 5.0%
25,000 ACE, LTD# 846,875
57,500 Allstate Corp. 2,476,094
162,500 American International Group 13,853,125
20,000 Exel LTD, Class A (Bermuda) 1,528,750
40,000 General Re Corp. 8,787,500
35,000 MGIC Investment Corp. 1,365,000
50,000 SunAmerica, Inc. 3,525,000
------------
32,382,344
------------
Manufacturing -- 2.9%
300,000 Illinois Tool Works, Inc. 19,237,500
------------
Multi-media -- 2.7%
175,000 Gannett Co., Inc. 10,828,125
250,000 The Walt Disney Co. 6,734,375
------------
17,562,500
------------
Oil & Gas -- 3.9%
30,000 Enron Corp. 1,582,500
100,000 Exxon Corp. 7,125,000
140,000 Halliburton Co. 5,031,250
100,000 Mobil Corp. 7,568,750
50,000 Tidewater, Inc. 1,415,625
100,000 Williams Companies, Inc. 2,743,750
------------
25,466,875
------------
</TABLE>
See notes to financial statements.
44
<PAGE>
Chase Vista Select Large Cap Growth Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- -------------------------------------------------------------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------------
<S> <C> <C>
Pharmaceuticals -- 15.2%
300,000 Abbot Laboratories $ 14,081,250
65,000 Bristol-Myers Squibb Co. 7,186,563
142,500 Johnson & Johnson Inc. 11,613,750
100,000 Merck & Company, Inc. 13,525,000
230,000 Pfizer, Inc. 24,681,875
360,000 Warner-Lambert Co. 28,215,000
------------
99,303,438
------------
Printing & Publishing -- 1.3%
150,000 Tribune Co. 8,643,750
------------
Restaurants/Food Services -- 0.5%
50,000 McDonald's Corp. 3,343,750
------------
Retailing -- 7.7%
125,000 Dayton-Hudson Corp. 5,296,875
300,000 Home Depot, Inc. 13,050,000
100,000 May Department Stores 6,100,000
350,000 Walgreen Co. 17,040,625
125,000 Wal-Mart Stores, Inc. 8,625,000
------------
50,112,500
------------
Shipping/Transportation -- 0.6%
125,000 Burlington Northern Santa Fe 3,859,375
------------
Telecommunications -- 2.8%
225,000 AirTouch Communications, Inc.* 12,600,000
40,000 Lucent Technologies, Inc. 3,207,500
50,000 MCI WorldCom, Inc.* 2,762,500
------------
18,570,000
- -------------------------------------------------------------------
Total Long-Term Investments 652,620,625
(Cost $341,660,556)
===================================================================
Principal
Amount
- -------------------------------------------------------------------
Short-Term Investments -- 0.2%
- -------------------------------------------------------------------
U.S. Government Agency Obligations -- 0.2%
$1,379,000 Federal Home Loan Bank, Discount
Note, 5.40%, 11/02/98 1,379,000
(Cost $1,379,000)
===================================================================
</TABLE>
See notes to financial statements.
45
<PAGE>
Chase Vista Select Large Cap Growth Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- -------- ----------------------------- ---------------
<S> <C> <C>
Total Investments -- 100.0% $653,999,625
(Cost $343,039,556)
======================================================
</TABLE>
Index
* -- Non income producing security.
# -- Security may only be sold to qualified institutional buyers.
ADR -- American Depository Receipt.
GDR -- Global Depository Receipt.
@ -- All or a portion of this security is segregated.
FRN -- Floating Rate Note: The maturity date shown is the next interest reset
date; the rate shown is the rate in effect at October 31, 1998.
See notes to financial statements.
46
<PAGE>
Chase Vista Select New Growth Opportunities Fund
as of October 31, 1998
(unaudited)
Fund Facts
<TABLE>
<S> <C>
Objective: Capital growth
Primary investments: Small- to mid-cap common stocks
Suggested investment
time frame: Long-term
Market benchmark: Russell 2000 Index
Lipper funds category: Mid Cap Growth Funds Average
Inception date: 1/1/97
Newspaper symbol: NewGrOp
Net assets: $112.3 million
</TABLE>
Investment Style/Market Cap
- ----------------------------
| | | |
| | | | Large
| | | |
- ----------------------------
| | | |
| | X | | Med.
| | | |
- ----------------------------
| | | |
| | | | Small
| | | |
- ----------------------------
Value Blend Growth
47
<PAGE>
Chase Vista Select New Growth Opportunities Fund
as of October 31, 1998
(unaudited)
How the Fund Performed
Chase 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, had a total return of -0.70% for the one-year
period ended October 31, 1998.
How the Fund Was Managed
In a market environment punctuated by strong momentum and extreme downturns,
the Fund outperformed its peers for the one year period, thanks largely to
superior stock selection by management.
In the first half of the period, the Fund benefited from the strong earnings
growth environment driven by the robust economy. In the second half, the Fund
was rewarded for moving to a defensive posture by focusing on companies with
consistent earnings growth in a challenging economic environment.
For the fiscal year, some of the Fund's better performing stocks included New
Era of Networks, Macrovision and CSG Systems (computer software), Paychex and
Abacus Direct (business services), Biogen (biotechnology) and Pediatrix Medical
and Pharmaceutical Product Development (healthcare services).
Capital goods stocks contributed favorably to the Fund's results. Waters
Corporation was one of our better performing stocks in this area. The company
provides instruments used by the life sciences industry for new drug research.
We also enjoyed good performance from consumer staples stocks, most notably
Keebler Foods.
Energy stocks detracted from the Fund's performance due to falling oil prices.
Semiconductors also came under pressure as a result of overcapacity, brought on
by the Asian economic and currency crisis.
Where the Fund May Be Headed
We remain optimistic about the growth prospects for small- and mid-cap stocks,
given their strong performance at the end of the fiscal year and their
attractive valuations compared to large-cap stocks. We are also encouraged by
recent increases in both stock buy backs and insider purchase activity at small
and mid-sized companies. Moreover, the positive long term trends for equities
have not changed fundamentally. Baby boomers must still put money away for
retirement, interest rates remain low and inflation is still under control.
Securities analysts have lowered earnings estimates on many companies due to
the global economic uncertainty. However, U.S. companies, on balance, are in
good financial shape to weather an economic slowdown should one emerge. Given
this backdrop, we intend to use market downturns to purchase shares in quality
companies selling at attractive prices.
48
<PAGE>
Chase Vista Select New Growth Opportunities Fund
as of October 31, 1998
(unaudited)
How Much of the Fund Was Invested
[Pie Chart]
Cash (0.3%)
Investments (93.7%)
What the Fund Invested In
Percentage of Total Portfolio Investments
[Pie Chart]
Consumer Cyclicals (38.55%)
Consumer Staples (1.75%)
Energy (3.01%)
Financial (8.54%)
Health Care (15.10%)
Technology (21.79%)
U.S. Government Agency Obligations (7.05%)
Utilities (3.11%)
Capital Goods (1.10%)
Top Ten Equity Holdings
1. CSG Systems International, Inc. (2.00%) Provides customer care and billing
solutions for cable television and direct broadcast satellite providers.
2. Allied Waste Industries, Inc. (1.99%) A non-hazardous solid waste
management company which provides its services through collection
companies, landfills and recycling facilities.
3. Waters Corp. (1.96%) Manufactures electronics and markets network
connectivity, contract manufacturing, agricultural electric fencing, and
medical products.
4. Outdoor Systems, Inc. (1.70%) An out-of-home media company which operates
poster, bulletin, transit shelter and subway displays.
5. Uniphase Corp. (1.54%) Designs, develops, manufactures, and markets fiber
optic telecommunications equipment products, laser subsystems, and
laser-based semiconductors.
6. Chancelor Media Corp. (1.54%) A radio broadcasting company which owns and
operates radio stations in various nationwide markets.
7. Sterling Software, Inc. (1.52%) Provides software and services for the
applications management, systems management, and federal systems markets.
8. NEXTLINK Communications, Inc., Class A (1.48%) Provides local, long
distance, and enhanced communications services to commercial customers.
The Company operates facilities-based networks providing switched local
and long-distance services.
9. Safeway, Inc. (1.48%) Operates a retail food and drug chain under the
"Safeway" and "Dominick's" names. The Company also has a network of
distribution, manufacturing, and food processing facilities.
10. TSI International Software LTD (1.47%) Provides software and related
services that enable organizations to integrate their business
applications both internally and with external business partners.
Top 10 equity holdings comprised 16.68% of the Portfolio's market value of
investments. Fund holdings are subject to change at any time.
49
<PAGE>
Chase Vista Select New Growth Opportunities Fund
as of October 31, 1998
(unaudited)
Average Annual Total Returns+
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the stock markets, tends to
be more volatile than the long-term trend.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Since Inception
1 Year 5 Years (4/30/89)
------------ ------------ ---------------
Select New Growth Opportunities -0.70% 8.29% 11.42%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
+ The quoted performance of Chase Vista Select New Growth Opportunities Fund
includes performance of a predecessor account for the period dating back to
4/30/89 and prior to the Fund's commencement of operations on 1/1/97. 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.
50
<PAGE>
Chase Vista Select New Growth Opportunities Fund
as of October 31, 1998
(unaudited)
Life of Fund Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista Select New Growth Opportunities Fund
compared to its key benchmarks. This is where you see the Fund's long-term
trend. This chart is for illustrative purposes only.
[Line Graph]
<TABLE>
<CAPTION>
Chase Vista
Select Lipper
New Growth Russell Mid Cap
Opportunities 2000 Growth Funds
Fund Index Average
------------- ------- ------------
<S> <C> <C> <C>
1989 $10,000 $10,000 $10,000
1989 10,145.2 10,234.5 10,926
1990 85,33.05 74,41.56 9,459.67
1991 13,359.4 11,803.8 14,796.3
1992 14,283.4 12,925.8 16,024.5
1993 18,780 17,111.3 19,936.5
1994 18,974.8 17,052 20,458.5
1995 22,128.7 20,182.5 25,180
1996 24,677.6 23,537.3 29,868.6
1997 28,164.6 30,443.3 36,873.9
1998 27,967 26,834.6 35,654.8
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. 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 Chase Vista Select New Growth Opportunities Fund, the Russell 2000 Index and
the Lipper Mid Cap Growth Funds Average from 4/30/89 to 10/31/98. The
performance of the Fund assumes reinvestment of all dividends and capital
gains. The performance of the average and the index does not include a sales
charge and has been adjusted to reflect the reinvestment of all dividends and
capital gains on the securities included in the benchmark.
The Russell 2000 index tracks the shares of 2,000 small-capitalization
companies. The index is unmanaged and reflects the reinvestment of dividends.
An individual cannot invest in the index.
The Lipper Mid-Cap Growth Funds Average represents the average performance of a
universe of 298 actively managed mid-cap 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 quoted performance of Chase Vista Select New Growth Opportunities Fund
includes performance of a predecessor account for the period dating back to
4/30/89 and prior to the Fund's commencement of operations on 1/1/97. 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.
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.
51
<PAGE>
Chase Vista Select New Growth Opportunities Fund
Portfolio of Investments October 31, 1998
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------------------------------------------------------
Long-Term Investments -- 92.9%
- ----------------------------------------------------------
<S> <C> <C>
Common Stock -- 92.9%
----------------------------------
Advertising -- 2.2%
16,250 Lamar Advertising Co.* $ 507,305
86,437 Outdoor Systems, Inc.* 1,907,016
-----------
2,414,321
-----------
Apparel -- 0.6%
15,000 Tommy Hilfiger Corp.* 696,563
-----------
Automotive -- 0.6%
30,000 Tower Automotive, Inc.* 667,500
-----------
Banking -- 4.0%
13,000 Cullen/Frost Bankers, Inc. 692,250
50,000 National Commerce Bancorporation 887,500
60,000 North Fork Bancorporation, Inc. 1,192,500
68,400 Peoples Heritage Financial Group,
Inc. 1,231,200
30,000 Southwest Bancorp of Texas* 459,375
-----------
4,462,825
-----------
Biotechnology -- 3.3%
20,000 Biogen, Inc.* 1,390,000
20,000 Centocor, Inc. 890,000
35,000 PathoGenesis Corp.* 1,400,000
-----------
3,680,000
-----------
Broadcasting -- 1.5%
40,000 Heftel Broadcasting Corp.* 1,645,000
-----------
Business Services -- 12.2%
25,000 Abacus Direct Corp.* 1,218,750
35,000 Apollo Group, Inc., Class A* 1,124,375
35,000 DeVRY, Inc.* 770,000
20,500 Interim Services, Inc.* 435,625
65,000 Mastech Corp.* 1,527,500
42,500 Maximus, Inc.* 1,232,500
20,000 Metzler Group, Inc.* 840,000
47,175 NOVA Corp. of Georgia* 1,362,178
32,500 Paychex, Inc. 1,616,875
17,500 Robert Half International, Inc.* 702,187
20,000 SM&A Corp.* 281,250
35,000 Snyder Communications, Inc.* 1,249,062
</TABLE>
See notes to financial statements.
52
<PAGE>
Chase Vista Select New Growth Opportunities Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
50,000 United Rentals, Inc.* $ 1,343,750
------------
13,704,052
------------
Computer Software -- 14.9%
50,000 American Management Systems, Inc.* 1,534,375
15,000 At Home Corp., Ser. A* 663,750
50,000 AXENT Technologies, Inc.* 1,256,250
41,250 CSG Systems International, Inc.* 2,248,125
50,000 Datastream Systems, Inc.* 503,125
15,000 Equant NV, New York Registered
Shares (Netherlands)* 656,250
14,250 Hyperion Solutions Corp.* 427,500
20,000 J.D. Edwards & Co.* 655,000
44,000 Macrovision Corp.* 1,361,250
32,500 New Era of Networks, Inc.* 1,600,625
50,000 Rational Software Corp.* 1,118,750
39,815 Sterling Commerce, Inc.* 1,403,479
65,000 Sterling Software, Inc.* 1,702,187
52,500 TSI International Software LTD* 1,647,187
------------
16,777,853
------------
Computers/Computer Hardware -- 0.8%
12,000 Lexmark International Group, Inc.,
Class A (Germany)* 839,250
------------
Construction Materials -- 1.1%
50,000 Wilmar Industries, Inc.* 1,237,500
------------
Consumer Products -- 4.3%
60,000 Carriage Services, Inc.* 1,402,500
15,000 Danaher Corp. 599,063
30,000 Equity Corp. International* 744,375
45,000 Furniture Brands International, Inc.* 967,500
40,000 Jones Apparel Group, Inc.* 690,000
40,000 Natrol, Inc.* 460,000
------------
4,863,438
------------
Electronics/Electrical Equipment -- 6.1%
15,000 Rambus Inc.* 981,094
40,000 TranSwitch Corp.* 975,000
35,000 Uniphase Corp.* 1,732,500
30,000 Vitesse Semiconductor Corp.* 967,500
</TABLE>
See notes to financial statements.
53
<PAGE>
Chase Vista Select New Growth Opportunities Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------------------------------------------------------------
Long-Term Investments -- (continued)
- ----------------------------------------------------------------
<S> <C> <C>
30,000 Waters Corp.* $ 2,205,000
------------
6,861,094
------------
Entertainment/Leisure -- 2.6%
20,000 Anchor Gaming* 1,017,500
36,250 Family Golf Centers, Inc.* 763,516
50,000 International Game Technology 1,128,125
------------
2,909,141
------------
Environmental Services -- 4.5%
103,500 Allied Waste Industries, Inc.* 2,238,188
35,000 Casella Waste Systems, Inc.* 1,032,500
120,000 Newpark Resources, Inc.* 1,132,500
15,000 Waste Management, Inc. 676,875
------------
5,080,063
------------
Financial Services -- 1.3%
20,000 Finova Group, Inc. 975,000
16,500 Healthcare Financial Partners, Inc.* 505,313
------------
1,480,313
------------
Food/Beverage Products -- 3.2%
40,000 Keebler Foods Corp.* 1,150,000
34,750 Safeway, Inc.* 1,661,484
25,000 Suiza Foods Corp.* 815,625
------------
3,627,109
------------
Health Care/Health Care Services -- 10.9%
50,000 Alternative Living Services, Inc.* 1,306,250
40,000 Arterial Vascular Engineering, Inc.* 1,230,000
25,000 Henry Schein, Inc.* 967,188
33,600 IMPATH, Inc.* 1,029,000
40,000 Omnicare, Inc. 1,382,500
25,000 Parexel International Corp.* 551,562
16,000 Pediatrix Medical Group, Inc.* 746,000
40,000 Perclose, Inc.* 955,000
50,000 Pharmaceutical Product Development,
Inc.* 1,350,000
25,000 Total Renal Care Holdings, Inc.* 612,500
20,000 Universal Health Services, Inc.,
Class B* 1,026,250
</TABLE>
See notes to financial statements.
54
<PAGE>
Chase Vista Select New Growth Opportunities Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ---------------------------------------------------------------
Long-Term Investments -- (continued)
- ---------------------------------------------------------------
<S> <C> <C>
60,000 Ventana Medical Systems* $ 1,110,000
------------
12,266,250
------------
Insurance -- 3.2%
30,000 Nationwide Financial Services, Inc.,
Class A 1,245,000
35,000 Protective Life Corp. 1,297,188
20,000 Reinsurance Group of America, Inc. 1,102,500
------------
3,644,688
------------
Multi-Media -- 2.6%
25,000 Cablevision Systems Corp., Class A,* 1,206,250
45,000 Chancelor Media Corp.* 1,726,875
------------
2,933,125
------------
Oil & Gas -- 3.0%
25,000 BJ Services Co. 510,938
32,000 Newfield Exploration Co.* 778,000
81,291 Noble Drilling Corp.* 1,397,189
21,500 Stone Energy Corp.* 690,687
------------
3,376,814
------------
Pharmaceuticals -- 0.9%
65,000 King Pharmaceuticals, Inc.* 1,011,562
------------
Restaurants/Food Services -- 1.2%
35,000 Papa John's International, Inc.* 1,328,906
------------
Retailing -- 4.8%
11,900 99 Cents Only Stores* 550,375
40,000 Borders Group, Inc.* 1,015,000
28,500 Fred Meyer, Inc.* 1,519,406
30,000 Linens 'N Things, Inc.* 928,125
35,625 Pacific Sunwear of California* 770,391
25,000 Wild Oats Markets, Inc.* 615,625
------------
5,398,922
------------
Telecommunications -- 3.1%
30,000 American Tower Corp.* 656,250
65,000 NEXTLINK Communications, Inc.,
Class A* 1,665,625
</TABLE>
See notes to financial statements.
55
<PAGE>
Chase Vista Select New Growth Opportunities Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------
<S> <C> <C>
30,000 Qwest Communications
International Inc.* $ 1,173,750
-------------
3,495,625
- ------------------------------------------------------------------
Total Long-Term Investments 104,401,914
(Cost $75,697,576)
==================================================================
Principal
Amount
- ------------------------------------------------------------------
Short-Term Investments -- 7.1%
- ------------------------------------------------------------------
U.S. Government Agency Obligations -- 7.1%
$7,923,000 Federal Home Loan Bank, Discount
Note, 5.40%, 11/02/98 7,923,000
(Cost $7,923,000)
- ------------------------------------------------------------------
Total Investments -- 100.0% $112,324,914
(Cost $83,620,576)
==================================================================
</TABLE>
Index
* -- Non income producing security.
# -- Security may only be sold to qualified institutional buyers.
ADR -- American Depository Receipt.
GDR -- Global Depository Receipt.
@ -- All or a portion of this security is segregated.
FRN -- Floating Rate Note: The maturity date shown is the next interest reset
date; the rate shown is the rate in effect at October 31, 1998.
See notes to financial statements.
56
<PAGE>
Chase Vista Select Small Cap Value Fund
as of October 31, 1998
(unaudited)
Fund Facts
<TABLE>
<S> <C>
Objective: Capital growth
Primary investments: Small cap common stocks
Suggested investment
time frame: Long-term
Market benchmark: Russell 2000 Index
Lipper funds category: Small Company Growth Funds Average
Inception date: 1/1/97
Newspaper symbol: SmCpVal
Net assets: $418.4 million
</TABLE>
Investment Style/Market Cap
- ----------------------------
| | | |
| | | | Large
| | | |
- ----------------------------
| | | |
| | | | Med.
| | | |
- ----------------------------
| | | |
| X | | | Small
| | | |
- ----------------------------
Value Blend Growth
57
<PAGE>
Chase Vista Select Small Cap Value Fund
as of October 31, 1998
(unaudited)
How the Fund Performed
Chase Vista Select Small Cap Value Fund, which seeks capital growth by
investing in small cap common stocks, had a total return of -8.53% for the
one-year period ended October 31, 1998.
How the Fund Was Managed
The Fund's investment results were largely affected by the general downturn in
small cap stocks and the underperformance of value stocks compared to their
growth stock counterparts. Despite these factors, for the one year period, the
Fund managed to perform better than its peers.
The Fund benefited by owning two stocks that were acquired by other firms
during the fiscal year. Applied Graphics bought Devon Group, and Applied Power
purchased Zero Corp. The Fund also enjoyed solid investment results from Poe &
Brown, an insurance broker. Despite a precipitous decline in insurance rates,
the company managed to generate earnings growth in excess of 15 percent.
While the Fund was underweighted in health care stocks, several holdings in
this sector performed well. One notable was ResMed, which benefited from new
product offerings and increased market share gains in the U.S. and abroad. In
the final two weeks of the period, many of the stocks in the Fund registered
strong gains as small cap stocks, in general, showed considerable strength. The
rally was ignited by the Federal Reserve Board's decision to cut short-term
interest rates on October 15.
Several of the Fund's technology stocks also hindered investment when the Asian
crisis hit in late 1997 and the global liquidity crisis rattled world markets
this past summer. Problems in Asia also hurt the paper and forest product
sector, which took its toll on Albany International, a major supplier to the
paper industry.
Where the Fund May Be Headed
Looking ahead, we see many attractive investment opportunities among small-caps.
In fact, given their attractive valuations and recent strong gains, we feel
small caps are likely to outperform their large cap counterparts going forward.
Additionally, the positive long term trends for equities have not changed
fundamentally. Baby boomers must still put money away for retirement, companies
are repurchasing shares of their own stock, interest rates remain low and
inflation is still under control. Securities analysts have lowered earnings
estimates on many companies due to the global economic uncertainty. However,
U.S. companies, on balance, are in good financial shape to weather an economic
slowdown should one emerge. Given this backdrop, we intend to use market
downturns to purchase shares in quality companies selling at attractive prices.
58
<PAGE>
Chase Vista Select Small Cap Value Fund
as of October 31, 1998
(unaudited)
How Much of the Fund Was Invested
[Pie Chart]
Cash (0.03%)
Investments (99.97%)
What the Fund Invested In
Percentage of Total Portfolio Investments
[Pie Chart]
Basic Materials (10.97%)
Capital Goods (15.92%)
Consumer Cyclicals (32.04%)
Consumer Staples (3.39%)
Financial (11.07%)
Health Care (4.19%)
Technology (8.63%)
Transportation (1.84%)
U.S. Government (10.06%)
Utilities (1.89%)
Top Ten Equity Holdings
1. Concord EFS, Inc. (5.91%) Provides electronic transaction authorization,
processing, settlement and funds transfer services in selected markets.
2. Teleflex, Inc. (3.49%) Manufactures mechanical controls, electronic
products, driver control systems, hospital supply and surgical devices.
3. Carlisle Companies, Inc. (3.17%) Manufactures a variety of products for the
roofing, real estate, construction, trucking, food-service, aircraft
manufacturing and other industries.
4. Poe & Brown, Inc. (2.75%) An independent insurance agency organization. The
Company has offices in 10 states throughout the United States.
5. HCC Insurance Holdings, Inc. (2.52%) Underwrites property and casualty
insurance. The Company provides property, marine, aviation, energy,
accident and health insurance.
6. Trenwick Group, Inc. (2.30%) The Company reinsures property and casualty
risks written by United States insurance companies.
7. ResMed, Inc. (2.29%) Designs, manufactures, and distributes medical
equipment for the treatment of sleep disordered breathing conditions.
8. Shorewood Packaging Corp. (2.23%) Prints and manufactures paperboard
packaging. The Company's customers include the cosmetic, home, video,
music, software, tobacco, and general consumer markets.
9. Unifirst Corp. (2.02%) Manufactures, rents, cleans and delivers employment
uniforms and protective clothing to a variety of manufacturers, retailers
and service companies.
10. Interface, Inc., Class A (2.00%) Manufactures, markets, installs and
services products for the commercial and institutional interior market.
The Company manufactures modular carpet and broadloom carpet segments.
Top 10 equity holdings comprised 28.68% of the Portfolio's market value of
investments. Fund holdings are subject to change at any time.
59
<PAGE>
Chase Vista Select Small Cap Value Fund
as of October 31, 1998
(unaudited)
Average Annual Total Returns+
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the stock markets, tends to
be more volatile than the long-term trend.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1 Year 5 Years 10 Years
-------------- -------------- ---------------
Select Small Cap Value -8.53% 8.72% 12.84%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
+ The quoted performance of Chase Vista Select Small Cap Value Fund includes
performance of a predecessor account for the period dating back to 10/31/88 and
prior to the Fund's commencement of operations on 1/1/97. 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.
60
<PAGE>
Chase Vista Select Small Cap Value Fund
as of October 31, 1998
(unaudited)
10-Year Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista Select Small Cap Value Fund compared to
its key benchmarks. This is where you see the Fund's long-term trend. This
chart is for illustrative purposes only.
[Line Graph]
<TABLE>
<CAPTION>
Chase Vista Lipper
Select Russell Small Cap
Small Cap 2000 Growth Funds
Value Fund Index Average
---------- ------- ------------
<S> <C> <C> <C>
1988 $10000 $10,000 $10,000
1989 11,404.6 11,561.2 12,398.8
1990 9,070.42 8,406.23 9,958.01
1991 12,849.2 13,333.9 16,037.1
1992 16,325.2 14,601.4 17,373.4
1993 22,054 19,329.5 22,594.3
1994 23,074.9 19,262.5 22,947
1995 26,263.9 22,798.8 28,192.5
1996 29,932.9 26,588.5 34,247.6
1997 36,628.5 34,389.7 43,366.9
1998 33,505.7 30,313.2 37,381.9
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. 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 Chase Vista Select Small Cap Value Fund, the Russell 2000 Index and the
Lipper Small Company Growth Funds Average for the ten years ended 10/31/98. The
performance of the Fund assumes reinvestment of all dividends and capital
gains. The performance of the average and the index does not include a sales
charge and has been adjusted to reflect the reinvestment of all dividends and
capital gains on the securities included in the benchmark.
The Russell 2000 Index tracks the shares of 2,000 small capitalization
companies. The index is unmanaged and reflects reinvestment of dividends. An
individual cannot invest in the index.
The Lipper Small Company Growth Funds Average represents the average
performance of a universe of 583 actively managed small company 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 quoted performance of Chase Vista Select Small Cap Value Fund includes
performance of a predecessor account for the period dating back to 10/31/88 and
prior to the Fund's commencement of operations on 1/1/97. 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.
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.
61
<PAGE>
Chase Vista Select Small Cap Value Fund
Portfolio of Investments October 31, 1998
<TABLE>
<CAPTION>
Shares Issuer Value
- ---------------------------------------------------------------
Long-Term Investments -- 90.4%
- ---------------------------------------------------------------
<S> <C> <C>
Common Stock -- 90.4%
---------------------------------------
Agricultural Production/Services -- 0.9%
268,400 Sylvan, Inc.* $3,589,850
----------
Apparel -- 0.4%
357,000 World Tex, Inc.* 1,517,250
----------
Appliances & Household Durables -- 1.1%
272,625 Watsco, Inc. 4,617,586
----------
Automotive -- 1.6%
142,187 Donnelly Corp. 1,972,845
191,700 Edelbrock Corp.* 2,731,725
290,000 TBC Corp.* 2,011,875
----------
6,716,445
----------
Banking -- 2.8%
100,125 First Virginia Banks, Inc. 4,568,203
136,935 Summit Bancorp. 5,194,972
108,000 Trustmark Corp. 2,072,250
----------
11,835,425
----------
Biotechnology -- 0.6%
93,242 Pharmaceutical Product Development,
Inc.* 2,517,534
----------
Broadcasting -- 0.9%
171,939 Century Communications Corp.,
Class A* 3,804,150
----------
Business Services -- 12.2%
146,970 Applied Graphics Technologies, Inc.* 1,754,454
871,780 Concord EFS, Inc.* 24,845,730
91,000 IntelliQuest Information Group, Inc.* 602,875
150,000 McGraft Rentcorp 3,131,250
801,400 NFO Worldwide, Inc.* 7,513,125
305,750 Unifirst Corp. 8,503,672
258,100 Unitog Co. 4,645,800
----------
50,996,906
----------
Chemicals -- 3.2%
340,000 Airgas, Inc.* 3,910,000
227,650 Hanna (M.A.) Co. 3,343,609
135,600 Minerals Technologies Inc. 6,178,275
----------
13,431,884
----------
</TABLE>
See notes to financial statements.
62
<PAGE>
Chase Vista Select Small Cap Value Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- --------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
Construction Materials -- 6.5%
344,400 Carlisle Companies, Inc. $13,302,450
681,800 Interface, Inc., Class A* 8,394,662
267,400 LSI Industries, Inc. 5,481,700
-----------
27,178,812
-----------
Consumer Products -- 5.5%
275,600 CSS Industries, Inc.* 7,406,750
10,000 Chromcragt Revington, Inc.* 161,875
203,195 Department 56 Inc.* 6,337,144
105,000 Enesco Group Inc. 2,664,375
227,825 Heilig-Meyers Co. 1,751,405
150,000 Oil-Dri Corp. of America 2,025,000
115,400 Oneida LTD 1,651,663
33,800 The Scotts Co., Class A 1,128,075
-----------
23,126,287
-----------
Distribution -- 1.8%
237,300 Applied Industrial Technology, Inc. 3,144,225
60,000 Lawson Products, Inc. 1,395,000
140,000 Daisytek International Corp.* 2,108,750
37,000 Performance Food Group Co.* 897,250
-----------
7,545,225
-----------
Diversified -- 0.3%
40,812 Corning Inc. 1,481,986
-----------
Electronics/Electrical Equipment -- 8.7%
125,000 Adaptec, Inc.* 2,023,438
502,200 Artesyn Technologies, Inc.* 7,250,513
74,800 Comptek Research, Inc.* 654,500
72,950 Harmon Industries, Inc. 1,851,106
275,000 Medar, Inc.* 421,094
100,600 Technitrol, Inc. 2,741,350
378,900 Teleflex, Inc. 14,658,694
295,486 Vishay Intertechnology, Inc.* 4,469,226
309,100 X-Rite, Inc. 2,202,337
-----------
36,272,258
-----------
Entertainment/Leisure -- 0.1%
53,500 Johnson Worldwide Associates, Inc.,
Class A* 454,750
-----------
</TABLE>
See notes to financial statements.
63
<PAGE>
Chase Vista Select Small Cap Value Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
Environmental Services -- 0.5%
176,625 Met-Pro Corp. $2,174,695
----------
Food/Beverage Products -- 3.4%
120,000 Dreyer's Grand Ice Cream, Inc. 1,575,000
195,000 J & J Snack Foods Corp.* 4,387,500
467,100 Richfood Holdings, Inc. 8,291,025
----------
14,253,525
----------
Health Care/Health Care Services -- 3.6%
65,000 Beckman Coulter Inc. 3,055,000
20,203 Covance, Inc.* 563,159
97,318 Morrison Health Care, Inc. 1,684,818
10,101 Quest Diagnostics Inc.* 167,929
189,000 ResMed, Inc.* 9,639,000
----------
15,109,906
----------
Insurance -- 8.3%
67,800 Arthur J. Gallagher & Co. 2,873,025
590,050 HCC Insurance Holdings, Inc. 10,584,022
299,150 Poe & Brown, Inc. 11,573,366
290,100 Trenwick Group, Inc. 9,645,825
----------
34,676,238
----------
Machinery & Engineering Equipment -- 2.1%
193,715 Applied Power, Inc., Class A 5,339,270
200,000 Columbus McKinnon Corp. 3,300,000
----------
8,639,270
----------
Manufacturing -- 4.4%
498,518 Essef Corp.* 7,758,186
194,600 Flowserve Corp. 3,502,800
481,300 Lydall, Inc.* 4,873,162
250,000 Stimsonite Corp.* 1,828,125
50,000 United Industrial Corp. 518,750
----------
18,481,023
----------
Metals/Mining -- 1.7%
195,600 Amcast Industrial Corp. 3,349,650
105,000 Trinity Industries, Inc. 3,898,125
----------
7,247,775
----------
</TABLE>
See notes to financial statements.
64
<PAGE>
Chase Vista Select Small Cap Value Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- --------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
Packaging -- 4.0%
310,296 Myers Industries, Inc. $ 7,447,104
586,500 Shorewood Packaging Corp.* 9,384,000
-----------
16,831,104
-----------
Paper/Forest Products -- 2.1%
195,472 Albany International Corp., Class A 3,567,357
286,368 Wausau-Mosinee Paper Corp. 4,993,542
-----------
8,560,899
-----------
Printing & Publishing -- 2.4%
304,600 Banta Corp. 7,576,925
168,000 Bowne & Co., Inc. 2,257,500
-----------
9,834,425
-----------
Restaurants/Food Services -- 2.9%
291,956 Ruby Tuesday, Inc. 4,926,757
298,000 Sbarro, Inc. 7,003,000
-----------
11,929,757
-----------
Retailing -- 4.7%
564,600 Cash America International, Inc. 7,057,500
300,000 Cato Corp., Class A 3,993,750
240,000 Office Depot, Inc.* 6,000,000
97,800 Tractor Supply Co.* 2,420,550
-----------
19,471,800
-----------
Shipping/Transportation -- 1.8%
54,810 Halter Marine Group, Inc.* 472,736
50,000 Hub Group, Inc., Class A* 900,000
210,200 M.S. Carriers, Inc.* 4,519,300
82,500 Swift Transportation Co., Inc.* 1,822,734
-----------
7,714,770
-----------
Telecommunications -- 1.9%
143,696 MCI WorldCom, Inc.* 7,939,204
- --------------------------------------------------------------
Total Long-Term Investments 377,950,739
(Cost $236,603,979)
==============================================================
</TABLE>
See notes to financial statements.
65
<PAGE>
Chase Vista Select Small Cap Value Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------
Short-Term Investments -- 10.1%
- ------------------------------------------------------------------------
<S> <C> <C>
U.S. Government Agency Obligations -- 10.1%
--------------------------------------------
$42,288,000 Federal Home Loan Bank, Discount
Note, 5.40%, 11/02/98 $ 42,288,000
(Cost $42,288,000)
- ------------------------------------------------------------------------
Total Investments -- 100.5% $420,238,739
(Cost $278,891,979)
========================================================================
</TABLE>
Index
* -- Non income producing security.
# -- Security may only be sold to qualified institutional buyers.
ADR -- American Depository Receipt.
GDR -- Global Depository Receipt.
@ -- All or a portion of this security is segregated.
FRN -- Floating Rate Note: The maturity date shown is the next interest reset
date; the rate shown is the rate in effect at October 31, 1998.
See notes to financial statements.
66
<PAGE>
Chase Vista Select International Equity Fund
as of October 31, 1998
(unaudited)
Fund Facts
<TABLE>
<S> <C>
Objective: Capital growth and income
Primary investments: Common stocks, preferred stocks,
convertibles and warrants of established
companies outside the U.S.
Suggested investment
time frame: Long-term
Market benchmark: MSCI EAFE Index
Lipper funds category: International Equity Funds Average
Inception date: 1/1/97
Newspaper symbol: Intl Eq
Net assets: $220.9 million
</TABLE>
Investment Style/Market Cap
- ----------------------------
| | | |
| | | X | Large
| | | |
- ----------------------------
| | | |
| | | | Med.
| | | |
- ----------------------------
| | | |
| | | | Small
| | | |
- ----------------------------
Value Blend Growth
67
<PAGE>
Chase Vista Select International Equity Fund
as of October 31, 1998
(unaudited)
How the Fund Performed
Chase 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 4.80% for the one-year period
ended October 31, 1998.
How the Fund Was Managed
Good performance by the Fund's European stocks throughout much of the period
helped offset the negative investment results recorded by Japanese, southeast
Asian and Latin American markets.
Improving economic conditions, corporate restructurings, low inflation and the
convergence of interest rates on the continent helped fuel the advance in
European equity prices. Investor optimism over the creation of the 11-country
European Monetary Union also proved to be a positive development for equities.
The EMU, which is slated to begin on January 1, 1999, will create a marketplace
larger than that of the U.S. as well as a single currency.
The Fund's underweighted exposure in Japanese equities helped performance, as
Japan's market drifted lower, despite periodic signs of breaking that trend.
The Japanese market was negatively affected by sluggish economic conditions, a
troubled banking system in need of restructuring and the Japanese government's
unwillingness to present a substantive economic reform package to address the
country's fundamental problems.
The Asian economic and currency crisis weighed heavily on southeast Asian
markets throughout much of the period. Latin American markets were also
negatively affected by this development, because it magnified inherent economic
shortcomings in several countries throughout the region.
Where the Fund May Be Headed
Our outlook for Europe remains favorable because the positive factors that
helped fuel higher prices throughout much of 1998 are, for the most part, still
in place today. We remain cautious on Japan and intend to maintain that posture
until the government takes serious steps to reform the economy. Similarly,
governments in Southeast Asia and Latin America must make significant progress
in solving their inherent economic woes before we become optimistic about the
growth prospects for companies in those regions.
68
<PAGE>
Chase Vista Select International Equity Fund
as of October 31, 1998
(unaudited)
How Much of the Fund Was Invested
[Pie Chart]
Cash (17.1%)
Investments (82.9%)
What the Fund Invested In
Percentage of Total Portfolio Investments
[Pie Chart]
Finland (2.60%)
France (22.00%)
Germany (12.65%)
Ireland (2.52%)
Italy (5.19%)
Japan (10.39%)
Malta (1.18%)
Netherlands (5.32%)
Poland (1.48%)
Portugal (21.12%)
Spain (3.86%)
Sweden (1.25%)
Switzerland (6.36%)
United Kingdom (21.43%)
Other (1.65%)
Top Ten Equity Holdings
1. MobilCom AG (Germany) (3.01%) Provides mobile telephone service by buying
air time from licensed providers and reselling it to consumers through
its own sales and service organization.
2. Novartis AG (Registered) (Switzerland) (2.70%) Manufactures healthcare
products for use in a broad range of medical fields, as well as
nutritional and agricultural products.
3. Roche Holding AG (Switzerland) (2.65%) Develops pharmaceuticals and drugs,
fine chemicals and vitamins, fragrances and flavors, diagnostic equipment
and liquid crystals.
4. Olivetti Group SPA (Italy) (2.46%) Manufactures office and computer
equipment, office furniture and furnishings, component parts, specialized
information systems and telecommunications services.
5. Lagardere SCA (France) (2.34%) A holding company with interests in the
publishing, distribution, audiovisual production and services, aerospace/
defense, telecommunications and banking sectors.
6. Nokia Oyj, A Shares (Finland) (2.24%) Develops and manufactures mobile
phones, networks and systems for cellular and fixed networks. The Company
also develops and supplies access networks and other telecom related
products.
7. Vodafone Group PLC (United Kingdom) (2.12%) Provides telecommunications
services which include cellular radio, wide area paging, distribution,
packet radio and value added network services.
8. Kamps AG (Germany) (2.11%) Produces and sells baked goods including breads,
cookies, biscuits and snack food, emphasizing regional specialities.
9. British Aerospace PLC (United Kingdom) (2.03%) The Company produces
military aircraft, satellites, guidance weapons and other systems.
10. Glaxo Welcome PLC (United Kingdom) (1.92%) Researches, develops,
manufactures and markets pharmaceuticals. The Company's main products
include "Zantac," an anti-ulcer drug and "Serevent," a respiratory drug.
Top 10 equity holdings comprised 23.58% of the Portfolio's market value of
investments. Fund holdings are subject to change at any time.
69
<PAGE>
Chase Vista Select International Equity Fund
as of October 31, 1998
(unaudited)
Average Annual Total Returns+
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the stock markets, tends to
be more volatile than the long-term trend.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Since Inception
1 Year 5 Years (5/31/93)
------------ ------------- ---------------
Select International Equity 4.80% 4.87% 5.71%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
+ The quoted performance of Chase 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 1/1/97. 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.
70
<PAGE>
Chase Vista Select International Equity Fund
as of October 31, 1998
(unaudited)
Life of Fund Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista Select International Equity Fund compared
to its key benchmarks. This is where you see the Fund's long-term trend. This
chart is for illustrative purposes only.
[Line Graph]
<TABLE>
<CAPTION>
Chase Vista Lipper
Select MSCI International
International EAFE Equity Funds
Equity Fund Index Average
------------- ----- -------------
<S> <C> <C> <C>
1993 $10,000 $10,000 $10,000
1993 10,648.4 10,831.1 11,122.6
1994 10,475.1 11,954.9 12,313.5
1995 10,633 11,947.4 12,177
1996 11,835.5 13,234.7 13,552
1997 12,889.9 13,885 14,919.2
1998 12,966.5 15,266.8 15,495.4
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. 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 Chase Vista Select International Equity Fund, the MSCI EAFE Index and the
Lipper International Funds Average from 5/31/93 to 10/31/98. The performance of
the Fund assumes reinvestment of all dividends and capital gains. The
performance of the average and the index does not include a sales charge and
has been adjusted to reflect the reinvestment of all dividends and capital
gains on the securities included in the benchmark.
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 reflects reinvestment of dividends. An individual cannot
invest in the index.
The Lipper International Equity Funds Average represents the average
performance of a universe of 485 actively managed international 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 quoted performance of Chase 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 1/1/97. 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.
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.
71
<PAGE>
Chase Vista Select International Equity Fund
Portfolio of Investments October 31, 1998
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ------------------------------------------------------------------
Long-Term Investments -- 78.7%
- ------------------------------------------------------------------
<S> <C> <C>
Common Stock -- 77.4%
----------------------------------------
Australia -- 0.6%
Diversified -- 0.3%
311,137 Futuris Corp. LTD $ 317,519
138,500 Lang Corp., LTD 202,531
36,000 Southcorp, LTD 114,136
------------
634,186
------------
Financial Services -- 0.1%
987,000 FXF Trust* 116,693
------------
Food/Beverage Products -- 0.1%
106,000 Foster's Brewing Group, LTD 259,223
------------
Metals/Mining -- 0.1%
8,600 Soul Pattinson & Company LTD,
(Washington H.) 128,435
------------
Multi-Media -- 0.0%
20,000 Publishing & Broadcasting, LTD 79,028
------------
Total Australia 1,217,565
------------
Austria -- 0.3%
Oil & Gas -- 0.3%
11,237 Schoeller-Bleckmann Oilfield
Equipment AG 742,568
------------
Brazil -- 0.0%
Utilities -- 0.0%
8,550 Centrais Geradoras do Sul do Brazil
SA, ADR* 48,381
------------
Finland -- 2.3%
Food/Beverage Products -- 0.3%
51,000 Raisio Group, PLC 688,314
------------
Telecommunications -- 2.0%
47,800 Nolia Oyj, A Shares 4,349,857
------------
Total Finland 5,038,171
------------
France -- 11.1%
Appliances & Household Durables -- 0.7%
85,023 Moulinex* 1,441,307
------------
</TABLE>
See notes to financial statements.
72
<PAGE>
Chase Vista Select International Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ---------------------------------------------------------------
Long-Term Investments -- (continued)
- ---------------------------------------------------------------
<S> <C> <C>
Automotive -- 1.6%
19,256 Equipments et Composants pour
l'Industries Automobile $ 3,655,845
------------
Banking -- 1.0%
30,403 Credit Commercial de France 2,134,878
------------
Computer Software / Services -- 1.4%
20,872 Cap Gemini Sogeti SA 3,136,316
------------
Diversified -- 2.0%
112,600 Lagardere SCA 4,530,848
------------
Entertainment/Leisure -- 0.5%
43,600 Parc Asterix, SA 1,097,674
------------
Insurance -- 0.8%
50,870 CNP Assurances 1,729,271
------------
Oil & Gas -- 2.8%
26,100 Elf Aquitaine, SA 3,020,096
27,200 Total SA, B Shares 3,137,590
------------
6,157,686
------------
Retailing -- 0.3%
3,533 Castorama Dubois Investisse 630,067
------------
Total France 24,513,892
------------
Germany -- 10.3%
Automotive -- 0.7%
69,750 Kolbenschmidt Pierburg AG 1,465,604
------------
Banking -- 1.6%
91,093 BHF-Bank AG 3,506,376
------------
Capital Goods -- 0.5%
11,725 Mannesmann AG 1,153,968
------------
Food/Beverage Products -- 1.9%
90,270 Kamps AG* 4,098,779
------------
Insurance -- 2.6%
7,800 Allianz AG, Vinkulierte Registered
Shares 2,675,076
6,223 Muenchener Rueckversicherungs-
Gesellschaft AG* 2,848,146
498 Muenchener Rueckversicherungs-
Gesellschaft AG, New Shares* 226,722
------------
5,749,944
------------
</TABLE>
See notes to financial statements.
73
<PAGE>
Chase Vista Select International Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ---------------------------------------------------------------
Long-Term Investments -- (continued)
- ---------------------------------------------------------------
<S> <C> <C>
Pharmaceuticals -- 0.4%
11,200 Gehe AG $ 841,939
-----------
Telecommunications -- 2.6%
20,093 MobilCom AG 5,830,568
-----------
Total Germany 22,647,178
-----------
Greece -- 0.4%
Telecommunications -- 0.4%
30,000 STET Hellas Telecommunications
SA, ADR* 787,500
-----------
Ireland -- 2.2%
Banking -- 0.3%
36,719 Bank of Ireland 675,197
-----------
Computer Software/Services -- 0.4%
34,000 IONA Technologies PLC, ADR* 901,000
-----------
Real Estate -- 0.8%
333,699 Green Property, PLC 1,704,479
-----------
Telecommunications -- 0.7%
52,708 Esat Telecom Group PLC, ADR* 1,594,417
-----------
Total Ireland 4,875,093
-----------
Italy -- 4.6%
Banking -- 0.5%
81,199 Istituto Bancario San Paolo di Torino 1,194,539
-----------
Printing & Publishing -- 1.9%
485,200 Poligrafici Editoriale SPA 1,030,701
3,750,000 Seat Pagine Gialle SPA* 3,062,811
-----------
4,093,512
-----------
Telecommunications -- 2.2%
1,950,000 Olivetti Group SPA* 4,767,272
-----------
Total Italy 10,055,323
-----------
Japan -- 9.0%
Consumer Products/Services -- 2.2%
53 Japan Tobacco, Inc. 444,371
58,000 KAO Corp. 1,174,668
10,800 Nintendo Co., LTD 913,852
17,000 Secom Co., LTD 1,261,944
23,700 Uni-Charm Corp. 1,077,952
-----------
4,872,787
-----------
</TABLE>
See notes to financial statements.
74
<PAGE>
Chase Vista Select International Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- -----------------------------------------------------------------
Long-Term Investments -- (continued)
- -----------------------------------------------------------------
<S> <C> <C>
Electronics/Electrical Equipment -- 2.2%
400 Advantest Corp. $ 25,230
17,000 Futaba Corp. 528,120
34,000 Hosiden Corp. 558,173
26,300 Mabuchi Motor 1,715,317
31,000 Mitsumi Electric Co., LTD 553,350
43,000 Murata Manufacturing Co., LTD 1,450,228
-----------
4,830,418
-----------
Financial Services -- 0.1%
100,000 Nikko Securities Co. LTD 302,077
-----------
Food/Beverage Products -- 1.0%
150,000 Ajinomoto Co., Inc. 1,418,561
34,000 Nissin Food Products, Co., LTD 675,468
-----------
2,094,029
-----------
Health Care/Health Care Services -- 0.6%
42,000 Takeda Chemical Industries 1,366,041
-----------
Machinery & Engineering Equipment -- 0.4%
163,000 Tokyo Kikai Seisakusho 965,188
-----------
Manufacturing -- 0.2%
15,000 Fuji Machine Manufacturing Co., LTD 441,530
-----------
Pharmaceuticals -- 0.3%
60,000 Fujisawa Pharmaceutical Co., LTD 707,993
-----------
Photographic Equipment -- 0.7%
41,000 Fuji Photo Film 1,502,404
-----------
Real Estate -- 0.2%
70,000 Hankyu Realty Co., LTD 288,346
5,000 Tachihi Enterprise Co., LTD 105,770
-----------
394,116
-----------
Retailing -- 0.3%
19,500 Matsumotokiyoshi 736,313
-----------
Shipping/Transportation -- 0.2%
92 East Japan Railway Co. 545,558
-----------
Telecommunications -- 0.6%
380 NTT Mobile Communication
Network, Inc. 1,372,906
-----------
Total Japan 20,131,360
-----------
</TABLE>
See notes to financial statements.
75
<PAGE>
Chase Vista Select International Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- --------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
Malta -- 1.0%
Telecommunications -- 1.0%
199,000 Maltacom PLC, GDR, $ 2,288,500
-----------
Netherlands -- 4.6%
Business Services -- 0.7%
75,720 Koninklijke Ahrend Groep NV 1,536,554
-----------
Computer Software/Services -- 1.3%
92,000 Ordina Beheer NV* 2,393,989
105,000 Tas Groep NV* 477,866
-----------
2,871,855
-----------
Food/Beverage Products -- 0.7%
65,226 Laurus NV 1,641,431
-----------
Printing & Publishing -- 1.5%
95,000 Verenigde Nederlandse
Uitgeversbedrijvan Verenigd Bezit 3,285,898
-----------
Retailing -- 0.4%
38,292 Vendex NV 973,867
-----------
Total Netherlands 10,309,605
-----------
Portugal -- 1.8%
Banking -- 1.5%
107,771 Banco Comercial Portugues, SA 3,376,732
-----------
Construction -- 0.3%
15,000 Brisa-Auto Estradas de Portugal, SA 727,203
-----------
Total Portugal 4,103,935
-----------
Spain -- 3.4%
Construction -- 0.8%
57,100 ACS, Actividades de Construccion y
Servicios, SA 1,818,822
-----------
Consumer Products/Services -- 0.2%
37,175 Corp. Financiera Reunida, SA* 445,207
-----------
Telecommunications -- 1.7%
82,188 Telephonica de Espana 3,704,162
-----------
Utilities -- 0.7%
60,000 Endesa SA 1,509,399
-----------
Total Spain 7,477,590
-----------
</TABLE>
See notes to financial statements.
76
<PAGE>
Chase Vista Select International Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
Sweden -- 1.1%
Insurance -- 1.1%
190,309 Skandia Forsakrings AB $ 2,422,423
-----------
Switzerland -- 5.6%
Health Care/Health Care Services -- 4.7%
2,900 Novartis AG (Registered) 5,222,638
440 Roche Holding AG 5,129,064
-----------
10,351,702
-----------
Photographic Equipment -- 0.9%
6,400 Fotolabo SA 1,970,913
-----------
Total Switzerland 12,322,615
-----------
Thailand -- 0.2%
Oil & Gas -- 0.1%
19,300 PTT Exploration and Production
Public Co., LTD (Foreign)* 185,941
-----------
Utilities -- 0.1%
86,900 Electricity Generating Public Co.,
LTD (Foreign)* 229,409
-----------
Total Thailand 415,350
-----------
United Kingdom -- 18.9%
Aerospace -- 1.8%
527,600 British Aerospace PLC 3,927,476
-----------
Business Services -- 0.2%
113,849 Delphi Group PLC 514,790
-----------
Construction -- 2.7%
332,027 Berkeley Group PLC 2,835,833
288,066 Jarvis PLC 3,039,272
-----------
5,875,105
-----------
Electronics/Electrical Equipment -- 1.2%
328,158 General Electric Co., PLC 2,624,179
-----------
Entertainment/Leisure -- 0.7%
100,726 Granada Group PLC 1,534,198
-----------
Hotels/Other Lodging -- 0.5%
626,748 Jarvis Hotels PLC 1,070,607
-----------
Insurance -- 0.8%
153,145 Legal & General Group PLC 1,809,409
-----------
</TABLE>
See notes to financial statements.
77
<PAGE>
Chase Vista Select International Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- -------------------------------------------------------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
Oil & Gas -- 3.5%
246,821 British Petroleum Co., PLC $ 3,643,690
475,631 British-Borneo Petro Syndica PLC 1,768,320
378,800 Shell Transport & Trading PLC 2,301,200
------------
7,713,210
------------
Pharmaceuticals -- 2.7%
119,804 Glaxo Wellcome PLC 3,723,800
184,800 SmithKline Beecham PLC 2,311,850
------------
6,035,650
------------
Real Estate -- 0.9%
1,219,732 TBI PLC 1,940,551
------------
Telecommunications -- 2.8%
276,650 Securicor PLC 2,047,811
307,870 Vodafone Group PLC 4,111,829
------------
6,159,640
------------
Utilities -- 1.1%
1,199,756 Centrica PLC* 2,330,708
------------
Total United Kingdom 41,535,523
------------
Total Common Stock 170,932,572
------------
(Cost $161,779,961)
Preferred Stock -- 0.0%
----------------------------------------------------
Malaysia -- 0.0%
Construction -- 0.0%
100,000 Sunway Building Technology, BHD,
3.0% RULS, (Redemmable
Unsecured Loan Stock) 13,137
------------
(Cost $40,209)
Warrants -- 0.0%
-----------------------------------
Germany -- 0.0%
Insurance -- 0.0%
498 Muenchener Rueckversicherungs-
Gesellschaft AG, Expires 06/03/02 21,650
------------
Hong Kong -- 0.0%
Diversified -- 0.0%
5,200 Wharf Holdings, LTD, Expires
12/31/99 611
------------
</TABLE>
See notes to financial statements.
78
<PAGE>
Chase Vista Select International Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ---------------------------------------------------------------------
Long-Term Investments -- (continued)
- ---------------------------------------------------------------------
<S> <C> <C>
Financial Services -- 0.0%
74,000 Guangdong Investment, LTD,
Expires 07/30/99 $ 888
------------
Total Hong Kong 1,499
------------
Total Warrants 23,149
------------
(Cost $0)
Principal
Amount
(Local
Currency)
Convertible Corporate Notes & Bonds -- 1.3%
---------------------------------------------------
Germany -- 0.0%
Automotive -- 0.0%
73,400 Daimler-Benz AG, 5.75%, 06/04/02 57,039
------------
Poland -- 1.3%
Diversified -- 1.3%
4,640,000 Elecktrim Spolka Akcyjna SA,#
2.00%, 05/30/04 2,875,877
------------
Total Convertible Corporate
Notes & Bonds 2,932,916
(Cost $3,025,359)
=====================================================================
Total Long-Term Investments
(Cost $164,845,529) 173,901,774
=====================================================================
Short-Term Investments -- 9.0%
=====================================================================
Time Deposit -- 9.0%
-----------------------------------
France -- 8.2%
Banking -- 8.2%
30,011,523 Societe Generale 18,120,964
------------
Germany -- 0.8%
Banking -- 0.8%
10,011,508 Deutsche Bank AG, 3.30%, 11/03/98 1,801,643
=====================================================================
Total Short-Term Investments 19,922,607
(Cost $19,922,607)
=====================================================================
Total Investments -- 87.7% $193,824,381
(Cost $184,768,136)
=====================================================================
</TABLE>
See notes to financial statements.
79
<PAGE>
Chase Vista Select International Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Original Unrealized
Number Notional Notional Appreciation
Expiration of Value Value (USD) (Depreciation)
Description Date Contracts (USD) at 10/31/98 (USD)
- ----------------- ------------ ----------- ------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
Long Index Futures Contracts Outstanding
- --------------------------------------------------------
IBEX Plus
Index (Spain) Nov. 1998 118 $6,662,695 $7,367,695 $705,000
NIKKEI 225
(Japan) Dec. 1998 5 315,500 289,955 (25,545)
NIKKEI 225
(Japan) Dec. 1998 14 787,125 811,875 24,750
NIKKEI 225
(Japan) Dec. 1998 179 10,157,222 10,380,403 223,181
TOPIX Index
Future (Japan) Dec. 1998 59 5,648,027 5,245,500 (402,527)
Short Index Futures Contracts Outstanding
- --------------------------------------------------------
DAX Index
Future
(Germany) Dec. 1998 10 2,412,182 2,846,918 (434,736)
DAX Index
Future
(Germany) Dec. 1998 8 2,206,455 2,277,534 (71,079)
</TABLE>
Index
* -- Non income producing security.
# -- Security may only be sold to qualified institutional buyers.
ADR -- American Depository Receipt.
GDR -- Global Depository Receipt.
@ -- All or a portion of this security is segregated.
FRN -- Floating Rate Note: The maturity date shown is the next interest reset
date; the rate shown is the rate in effect at October 31, 1998.
See notes to financial statements.
80
<PAGE>
Chase Vista Select Funds
Statement of Assets and Liabilities October 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Chase 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) ......................... $149,832,888 $ 928,467,960 $ 177,685,681 $ 653,999,625
Cash .............................. 2,894 14,674 4,460 860
Foreign Currency .................. -- -- -- --
Receivables:
Variation margin ................. -- -- -- --
Investment securities sold ....... 3,228,647 2,143,073 -- 1,548,323
Open forward currency
contracts ....................... -- -- -- --
Interest and dividends ........... 680,068 1,674,995 136,682 274,225
Trust shares sold ................ -- 135,985 100,000 --
Expense reimbursement from
Distributor ..................... 13,616 -- 10,000 10,000
Other assets (a) .................. 11,470 48,506 11,522 30,979
------------ ------------- ------------- -------------
Total Assets ................... 153,769,583 932,485,193 177,948,345 655,864,012
------------ ------------- ------------- -------------
LIABILITIES:
Payables:
Investment securities
purchased ....................... 1,248,197 6,834,986 467,918 1,321,838
Trust shares redeemed ............ 3,000 165,432 503,203 248,041
Open forward currency
contracts ....................... -- -- -- --
Dividends ........................ 376,066 2,359,746 161,123 225,706
Accrued liabilities: (Note 2) ..... 40,685 147,666 53,905 82,343
------------ ------------- ------------- -------------
Total Liabilities .............. 1,667,948 9,507,830 1,186,149 1,877,928
------------ ------------- ------------- -------------
NET ASSETS:
Paid in capital ................... 95,753,285 689,274,802 102,282,933 282,858,559
Accumulated undistributed net
investment income ................ (75,423) 350,372 8,987 13,091
Accumulated undistributed net
realized gain on investment
and futures transactions ......... 8,990,621 94,978,772 22,089,356 60,154,365
Net unrealized appreciation of
investments and futures
transactions ..................... 47,433,152 138,373,417 52,380,920 310,960,069
------------ ------------- ------------- -------------
Net Assets: ......................... $152,101,635 $ 922,977,363 $ 176,762,196 $ 653,986,084
============ ============= ============= =============
Shares of beneficial interest
outstanding ($.001 par value;
unlimited number of shares
authorized) ........................ 4,536,639 10,648,657 428,343 5,835,395
Net asset value, redemption and
offering price per share ......... $ 33.53 $ 86.68 $ 412.67 $ 112.07
============ ============= ============= =============
Cost of Investments ............... $102,399,735 $ 790,094,543 $ 125,304,761 $ 343,039,556
============ ============= ============= =============
</TABLE>
- --------------
(a) -- Including cash segregated for margin on futures contracts.
See notes to financial statements.
81
<PAGE>
Chase Vista Select Funds
Statement of Assets and Liabilities October 31, 1998 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Chase Vista Select
----------------------------------------------------------
New Growth Small Cap International
Opportunities Value Equity
Fund Fund Fund
----------------- ----------------- ------------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value (Note 1) ..... $112,324,914 $420,238,739 $193,824,381
Cash ......................................... 3,856 19,365 1,997,144
Foreign Currency (Cost $16,629,316)........... -- -- 16,581,975
Receivables:
Variation margin ............................ -- -- 19,044
Investment securities sold .................. 198,743 -- 6,061,133
Open forward currency contracts ............. -- -- 8,743,334
Interest and dividends ...................... 11,925 95,463 463,839
Trust shares sold ........................... 75,000 -- 255,000
Expense reimbursement from Distributor....... -- 10,000 --
Other assets ................................. 8,378 26,276 6,532,263(a)
------------ ------------ -------------
Total Assets .............................. 112,622,816 420,389,843 234,478,113
------------ ------------ -------------
LIABILITIES:
Payables:
Investment securities purchased ............. 216,909 1,896,194 6,099,872
Trust shares redeemed ....................... -- 60,025 269,120
Open forward currency contracts ............. -- -- 7,080,842
Dividends ................................... -- -- --
Accrued liabilities: (Note 2) ................ 80,255 76,181 83,083
------------ ------------ -------------
Total Liabilities ......................... 297,164 2,032,400 13,532,917
------------ ------------ -------------
NET ASSETS:
Paid in capital .............................. 81,344,104 256,560,017 210,428,336
Accumulated undistributed net investment
income ...................................... 54,701 350,788 1,168,206
Accumulated undistributed net realized gain
on investment and futures transactions ...... 2,222,509 20,099,878 (1,407,167)
Net unrealized appreciation of investments
and futures transactions .................... 28,704,338 141,346,760 10,755,821
------------ ------------ -------------
Net Assets: .................................... $112,325,652 $418,357,443 $220,945,196
============ ============ =============
Shares of beneficial interest outstanding
($.001 par value; unlimited number of
shares authorized) ............................ 189,524 7,934,456 1,325,101
Net asset value, redemption and offering
price per share ............................. $ 592.67 $ 52.73 $ 166.74
============ ============ =============
Cost of Investments .......................... $83,620,576 $278,891,979 $184,768,136
============ ============ =============
</TABLE>
- --------------
(a) -- Including cash of approximately $2.9 million segregated for margin on
futures contracts.
See notes to financial statements.
82
<PAGE>
Chase Vista Select Funds
Statement of Operations For the year ended October 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Chase Vista Select
----------------------------------------------------------------------
Equity Large Cap Large Cap
Balanced Income Equity Growth
Fund Fund Fund Fund
--------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend .......................... $ 1,802,179 $21,576,971 $ 2,372,295 $ 6,044,012
Interest .......................... 5,055,001 6,809,580 384,250 109,753
Foreign taxes withheld ............ (5,785) (342,046) (16,016) (11,307)
----------- ----------- ----------- ------------
Total investment income ......... 6,851,395 28,044,505 2,740,529 6,142,458
----------- ----------- ----------- ------------
EXPENSES: (Note 2)
Investment Advisory fees .......... 857,679 3,918,281 734,379 2,470,230
Administration fees ............... 257,303 1,469,355 275,392 926,336
Custodian fees .................... 72,687 134,008 80,594 125,606
Printing and postage .............. 3,073 25,067 5,014 12,933
Professional fees ................. 45,033 59,469 39,455 55,348
Registration ...................... 3,849 14,164 3,822 4,192
Transfer agent fees ............... 16,661 40,218 21,939 37,053
Trustees fees and expenses ........ 8,577 48,979 9,180 30,878
Other ............................. 13,655 57,000 16,648 23,913
----------- ----------- ----------- ------------
Total expenses .................. 1,278,517 5,766,541 1,186,423 3,686,489
----------- ----------- ----------- ------------
Less amounts waived
(Note 2) ........................ 1,187,669 5,521,644 1,090,365 3,522,172
Less expenses borne by the
Distributor ..................... 42,818 -- 35,472 34,630
----------- ----------- ----------- ------------
Net expenses .................... 48,030 244,897 60,586 129,687
----------- ----------- ----------- ------------
Net investment income
(loss) ........................ 6,803,365 27,799,608 2,679,943 6,012,771
----------- ----------- ----------- ------------
REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on:
Investments ....................... 9,013,712 94,885,103 22,115,695 60,229,540
Futures and options
transactions ..................... (36,365) (234,404) -- --
Foreign currency transactions ..... -- -- -- --
Change in net unrealized
appreciation/depreciation on:
Investments ..................... 8,631,000 (48,434,375) 3,890,434 89,132,002
Futures transactions ............ -- -- -- --
Foreign currency
transactions ................... -- -- -- --
----------- ----------- ----------- ------------
Net realized and unrealized gain
(loss) on investments, futures
and foreign currency
transactions ..................... 17,608,347 46,216,324 26,006,129 149,361,542
----------- ----------- ----------- ------------
Net increase (decrease) in net
assets from operations ........... $24,411,712 $74,015,932 $28,686,072 $155,374,313
=========== =========== =========== ============
</TABLE>
See notes to financial statements.
83
<PAGE>
Chase Vista Select Funds
Statement of Operations For the year ended October 31, 1998 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Chase Vista Select
-------------------------------------------------------
New Growth Small Cap International
Opportunities Value Equity
Fund Fund Fund
--------------- ---------------- ------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend ........................................ $ 136,488 $ 3,490,242 $ 4,149,128
Interest ........................................ 485,483 2,726,523 662,407
Foreign taxes withheld .......................... -- -- (405,262)
---------- ------------ ------------
Total investment income ....................... 621,971 6,216,765 4,406,273
---------- ------------ ------------
EXPENSES: (Note 2)
Investment Advisory fees ........................ 795,182 3,124,028 2,517,887
Administration fees ............................. 183,503 720,930 377,683
Custodian fees .................................. 73,679 89,693 333,644
Printing and postage ............................ 5,014 8,837 10,028
Professional fees ............................... 27,916 49,678 54,312
Registration .................................... 10,028 2,946 10,766
Transfer agent fees ............................. 20,797 32,921 25,179
Trustees fees and expenses ...................... 6,117 24,031 12,589
Other ........................................... 24,326 29,830 12,992
---------- ------------ ------------
Total expenses ................................ 1,146,562 4,082,894 3,355,080
---------- ------------ ------------
Less amounts waived (Note 2) ................... 1,052,364 3,934,651 3,229,214
Less expenses borne by the Distributor ......... -- 42,500 --
---------- ------------ ------------
Net expenses .................................. 94,198 105,743 125,866
---------- ------------ ------------
Net investment income (loss) ................. 527,773 6,111,022 4,280,407
---------- ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments ..................................... 2,225,250 20,102,199 4,480,360
Futures and options transactions ................ -- -- (2,979,647)
Foreign currency transactions ................... -- -- (657,966)
Change in net unrealized appreciation/
depreciation on:
Investments ................................... (3,735,148) (64,591,534) 7,529,879
Futures transactions .......................... -- -- 19,044
Foreign currency transactions ................. -- -- 1,658,670
---------- ------------ ------------
Net realized and unrealized gain (loss) on
investments, futures and foreign currency
transactions ................................... (1,509,898) (44,489,335) 10,050,340
---------- ------------ ------------
Net increase (decrease) in net assets from
operations ..................................... $ (982,125) $(38,378,313) $ 14,330,747
========== ============ ============
</TABLE>
See notes to financial statements.
84
<PAGE>
<TABLE>
<CAPTION>
Chase Vista Mutual Funds
Statements of Changes in Net Assets For the periods indicated
- --------------------------------------------------------------------------------
Chase Vista Select
-------------------------------
Balanced
Fund
-------------------------------
Year 01/01/97
Ended Through
10/31/98 10/31/97
--------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ........................ $ 6,803,365 $ 6,528,249
Net realized gain on investments, futures
and foreign currency transactions ........... 8,977,347 18,722,208
Change in net unrealized appreciation/
depreciation on investments, futures and
foreign currency transactions ............... 8,631,000 643,155
------------- ------------
Increase (decrease) in net assets from
operations .................................. 24,411,712 25,893,612
------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income ....................... (6,795,211) (6,523,896)
Net realized gain on investments and
future transactions ........................ (18,803,135) --
------------- ------------
Total dividends and distributions ............ (25,598,346) (6,523,896)
------------- ------------
Increase (decrease) from capital share
transactions (Note 5) ....................... (25,894,393) 159,812,946
------------- ------------
Total increase (decrease) in net assets ..... (27,081,027) 179,182,662
NET ASSETS:
Beginning of period ......................... 179,182,662 --
------------- ------------
End of period ............................... $ 152,101,635 $179,182,662
============= ============
<CAPTION>
Chase Vista Select
-------------------------------------------------------------------
Equity Income Large Cap Equity
Fund Fund
---------------------------------- --------------------------------
Year 01/01/97 Year 01/01/97
Ended Through Ended Through
10/31/98 10/31/97 10/31/98 10/31/97
----------------- ---------------- --------------- ----------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ........................ $ 27,799,608 $ 22,387,910 $ 2,679,943 $ 2,583,157
Net realized gain on investments, futures
and foreign currency transactions ........... 94,650,699 190,247,390 22,115,695 56,847,469
Change in net unrealized appreciation/
depreciation on investments, futures and
foreign currency transactions ............... (48,434,375) (22,248,307) 3,890,434 (14,519,014)
--------------- ------------- ------------- ------------
Increase (decrease) in net assets from
operations .................................. 74,015,932 190,386,993 28,686,072 44,911,612
--------------- ------------- ------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income ....................... (27,135,324) (22,384,817) (2,678,756) (2,582,870)
Net realized gain on investments and
future transactions ........................ (190,259,641) -- (56,873,862) --
--------------- ------------- ------------- ------------
Total dividends and distributions ............ (217,394,965) (22,384,817) (59,552,618) (2,582,870)
--------------- ------------- ------------- ------------
Increase (decrease) from capital share
transactions (Note 5) ....................... 111,219,885 787,134,335 21,216,134 144,083,866
--------------- ------------- ------------- ------------
Total increase (decrease) in net assets ..... (32,159,148) 955,136,511 (9,650,412) 186,412,608
NET ASSETS:
Beginning of period ......................... 955,136,511 -- 186,412,608 --
--------------- ------------- ------------- ------------
End of period ............................... $ 922,977,363 $ 955,136,511 $ 176,762,196 $186,412,608
=============== ============= ============= ============
</TABLE>
- -------
* Funds commenced operations on January 1, 1997.
See notes to financial statements.
85
<PAGE>
<TABLE>
<CAPTION>
Chase Vista Mutual Funds
Statements of Changes in Net Assets For the periods indicated
- -----------------------------------------------------------------------------------------------------------------
Chase Vista Select
----------------------------------------------------------------
Large Cap New Growth
Growth Fund Opportunities Fund
------------------------------- --------------------------------
Year 01/01/97 Year 01/01/97
Ended Through Ended Through
10/31/98 10/31/97 10/31/98 10/31/97
--------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ........................ $ 6,012,771 $ 4,761,812 $ 527,773 $ 536,844
Net realized gain on investments, futures
and foreign currency transactions ............ 60,229,540 53,422,308 2,225,250 8,397,386
Change in net unrealized appreciation/
depreciation on investments, futures and
foreign currency transactions ................ 89,132,002 55,496,670 (3,735,148) 5,059,237
------------- ------------ ------------ ------------
Increase (decrease) in net assets from
operations ................................. 155,374,313 113,680,790 (982,125) 13,993,467
------------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income ........................ (6,016,069) (4,756,957) (506,827) (507,925)
Net realized gain on investments and
future transactions ......................... (53,497,483) -- (8,400,127) --
------------- ------------ ------------ ------------
Total dividends and distributions .......... (59,513,552) (4,756,957) (8,906,954) (507,925)
------------- ------------ ------------ ------------
Increase (decrease) from capital share
transactions (Note 5) ....................... 9,963,550 439,237,940 5,839,649 102,889,540
------------- ------------ ------------ ------------
Total increase (decrease) in net assets..... 105,824,311 548,161,773 (4,049,430) 116,375,082
NET ASSETS:
Beginning of period .......................... 548,161,773 -- 116,375,082 --
------------- ------------ ------------ ------------
End of period ................................ $ 653,986,084 $548,161,773 $112,325,652 $116,375,082
============= ============ ============ ============
<CAPTION>
------------------------------------------------------------------
Chase Vista Select
------------------------------------------------------------------
Small Cap Value International Equity
Fund Fund
-------------------------------- ---------------------------------
Year 01/01/97 Year 01/01/97
Ended Through Ended Through
10/31/98 10/31/97 10/31/98 10/31/97
---------------- --------------- ---------------- ----------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ........................ $ 6,111,022 $ 4,543,937 $ 4,280,407 $ 3,731,044
Net realized gain on investments, futures
and foreign currency transactions ............ 20,102,199 16,874,341 842,747 20,205,923
Change in net unrealized appreciation/
depreciation on investments, futures and
foreign currency transactions ................ (64,591,534) 49,902,918 9,207,593 (14,806,901)
------------- ------------ ------------- -------------
Increase (decrease) in net assets from
operations ................................. (38,378,313) 71,321,196 14,330,747 9,130,066
------------- ------------ ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income ........................ (6,176,416) (4,138,699) (10,955,192) (3,376,605)
Net realized gain on investments and
future transactions ......................... (16,876,662) -- (14,974,262) --
------------- ------------ ------------- -------------
Total dividends and distributions .......... (23,053,078) (4,138,699) (25,929,454) (3,376,605)
------------- ------------ ------------- -------------
Increase (decrease) from capital share
transactions (Note 5) ....................... (7,854,460) 420,460,797 (21,857,716) 248,648,158
------------- ------------ ------------- -------------
Total increase (decrease) in net assets..... (69,285,851) 487,643,294 (33,456,423) 254,401,619
NET ASSETS:
Beginning of period .......................... 487,643,294 -- 254,401,619 --
------------- ------------ ------------- -------------
End of period ................................ $ 418,357,443 $487,643,294 $ 220,945,196 $ 254,401,619
============= ============ ============= =============
</TABLE>
- -------
* Funds commenced operations on January 1, 1997.
See notes to financial statements.
86
<PAGE>
Chase Vista Select Funds
Notes to Financial Statements
- --------------------------------------------------------------------------------
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, Effective March 16, 1998,
the Vista Mutual Funds changed its name to the Chase Vista Funds. Select
Balanced Fund ("CVSBF" ), Select Equity Income Fund ("CVSEIF"), Select Large
Cap Equity Fund ("CVSLCEF"), Select Large Cap Growth Fund ("CVSLCGF"), Select
New Growth Opportunities Fund ("CVSNGOF"), Select Small Cap Value Fund
("CVSSCVF"), and Select International Equity Fund ("CVSIEF"), 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 following is a summary of significant accounting policies followed by the
Funds:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates.
A. Valuation of investments -- Equity securities, purchased options and
futures contracts 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.
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. 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 other than CVSIEF 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.
87
<PAGE>
Chase Vista Select Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
Index futures contracts are used to control the asset mix of CVSIEF
portfolio in the most efficient manner, allowing the fund to adjust country
exposures while incurring minimal transaction costs. Short index futures
contracts are used for hedging purposes, i.e. to reduce the exposure to
equities. Long index futures contracts are used to gain exposure to
equities, when it is anticipated that this will be more efficient than
buying stocks directly.
Use of long futures contracts subjects 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.
Use of short futures contracts subjects the Fund to unlimited risk of loss.
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.
At October 31, 1998, the Funds had open futures contracts as shown on the
Fund's Portfolio of Investments.
D. 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 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.
At October 31, 1998, the Funds had no outstanding written options.
E. Forward Foreign Currency Exchange Contracts -- The CVSIEF 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 CVSIEF 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 CVSIEF is subject to off-balance sheet
risk to the extent of the value of the contracts for purchases of foreign
currency and in an unlimited amount for sales of foreign currency.
F. 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.
G. 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.
1. Market value of investment securities and other assets and
liabilities: at the closing rate of exchange at the balance sheet
date.
88
<PAGE>
Chase Vista Select Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
2. 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 changes in the exchange rate) in the
value of foreign currency and other assets and liabilities denominated in
foreign currencies which are held at period end.
H. 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.
I. 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.
J. 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. CVSEIF additional paid in capital decreased by
$12,234, accumulated undistributed net realized gain was increased by
$340,324 and accumulated undistributed net investment income was decreased
by $328,090. These adjustments relate primarily to the character for tax
purposes of certain investments in real estate investment trusts. CVSIEF
additional paid in capital decreased by $4,049, accumulated undistributed
net realized gain was decreased by $1,857,433 and accumulated undistributed
net investment income was increased by $1,861,482. The adjustments to the
funds relate primarily to the character for tax purposes of certain
investments in passive foreign investment companies.
K. 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.
2. Fees and Other Transactions with Affiliates
A. Investment advisory fee -- Pursuant to separate investment advisory
agreements, The Chase Manhattan Bank ("Chase" or the "Advisor"), acts as
the Investment Advisor to the Funds. Chase is a direct wholly-owned
subsidiary of The Chase Manhattan Corporation. As Investment Advisor, Chase
supervises the investments
89
<PAGE>
Chase Vista Select Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
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 CVSBF, 0.40% for
CVSEIF, CVSLCEF, and CVSLCGF, 0.65% for CVSNGOF and CVSSCVF, and 1.00% for
CVSIEF of the average daily net assets. The Advisor voluntarily waived all
of its fees.
Chase Asset Management, Inc. ("CAM"), a registered investment advisor, is
the sub-investment advisor to each Fund, with the exception of CVSIEF,
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 CVSBF, 0.20% for CVSEIF, CVSLCEF and CVSLCGF, and 0.30% for CVSNGOF and
CVSSCVF of average daily net assets.
CAM London, a registered investment advisor is the sub-investment advisor
for CVSIEF pursuant to a Sub-Investment Advisory Agreement with Chase and
is paid a fee by Chase from its advisory fee at an annual rate equal to
0.50% of the CVSIEF's average daily net assets.
B. Sub-administration fees -- Pursuant to a Distribution and
Sub-Administration Agreement, Vista Fund Distributors, Inc. (the
"Distributor" or "VFD"), 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 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 equal to 0.10% of the
respective Fund's average daily net assets. The Administrator voluntarily
waived all of the administration fees.
D. 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. Chase voluntarily waived all custodian fees for the year
ended October 31, 1998. The Distributor voluntarily reimbursed expenses of
the Funds in the amounts as shown on the Statement of Operations.
3. Investment Transactions -- For the year ended October 31, 1998, purchases
and sales of investments (excluding short-term investments) were as follows:
<TABLE>
<CAPTION>
CVSBF CVSEIF CVSLCEF CVSLCGF
-------------- ----------------- --------------- ---------------
<S> <C> <C> <C> <C>
Purchases (excluding
U.S. Government) ......... $27,820,906 $1,337,062,260 $105,481,949 $132,692,515
Sales (excluding
U.S. Government) ......... 72,919,096 1,339,333,790 137,180,140 173,861,500
Purchases of
U.S. Government .......... 52,601,875 24,799,219 -- --
Sales of
U.S. Government .......... 49,496,989 126,272,060 -- --
</TABLE>
90
<PAGE>
Chase Vista Select Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CVSNGOF CVSSCVF CVSIEF
-------------- -------------- ---------------
<S> <C> <C> <C>
Purchases (excluding
U.S. Government) ......... $75,813,814 $27,950,236 $343,657,498
Sales (excluding
U.S. Government) ......... 79,522,836 31,037,359 392,331,237
Purchases of
U.S. Government .......... -- -- --
Sales of
U.S. Government .......... -- -- --
</TABLE>
CVSIEF
Written option transactions on securities and stock indices during the period
are summarized as follows:
<TABLE>
<CAPTION>
Puts Number Value
- ----------------------------------------- -------- -------------
<S> <C> <C>
Options outstanding at 10/31/97 ......... -- --
Options written ......................... 195 $135,649
Options expired ......................... (195) (135,649)
---- --------
Options outstanding at 10/31/98 ......... -- --
==== ========
</TABLE>
4. Federal Income Tax Matters -- For Federal income tax purposes, the cost and
unrealized appreciation (depreciation) in value of the investment securities at
October 31, 1998 are as follows:
<TABLE>
<CAPTION>
CVSBF CVSEIF CVSLCEF CVSLCGF
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Aggregate cost ......... $102,399,735 $790,094,543 $125,304,761 $343,039,556
------------ ------------ ------------ ------------
Gross unrealized
appreciation ......... $ 48,089,962 $156,045,258 $ 55,565,222 $318,866,305
Gross unrealized
depreciation ......... (656,809) (17,671,841) (3,184,302) (7,906,236)
------------ ------------ ------------ ------------
Net unrealized
appreciation ......... $ 47,433,153 $138,373,417 $ 52,380,920 $310,960,069
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
CVSNGOF CVSSCVF CVSIEF
-------------- --------------- ---------------
<S> <C> <C> <C>
Aggregate cost ......... $83,620,576 $278,891,979 $184,768,136
----------- ------------ ------------
Gross unrealized
appreciation ......... $30,977,643 $163,468,803 $ 21,392,968
Gross unrealized
depreciation ......... (2,273,305) (22,122,043) (12,336,723)
----------- ------------ ------------
Net unrealized
appreciation ......... $28,704,338 $141,346,760 $ 9,056,245
=========== ============ ============
</TABLE>
At October 31, 1998, the CVSIEF had a net capital loss carryover of
approximately $659,000, which will be available to offset capital gains arising
through October 31, 2006. To the extent that any net capital loss carryovers
are used to offset future capital gains, it is probable that the gains so
offset will not be distributed to shareholders.
91
<PAGE>
Chase Vista Select Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
5. Transactions in Shares of Beneficial Interest -- Transactions in Shares of
Beneficial Interest were as follows for the periods presented.
<TABLE>
<CAPTION>
Balanced Fund
--------------------------------------------------------------------
Year Ended 10/31/98 01/01/97* through 10/31/97
---------------------------------- -------------------------------
Amount Shares Amount Shares
---------------- --------------- ---------------- ------------
<S> <C> <C> <C> <C>
Shares sold .................... $ 757,270 23,471 $ 188,703 6,016
Shares issued in exchange for
Common Trust Fund Assets
(see Note 1) ................. -- -- 185,334,938 6,052,671
Shares issued in reinvestment of
distributions ................ 18,787,930 604,888 655,231 20,400
Shares redeemed ................ (45,439,593) (1,349,659) (26,365,926) (821,148)
------------ ---------- ------------ ---------
Net increase in Trust shares
outstanding .................. $(25,894,393) (721,300) $159,812,946 5,257,939
============ ========== ============ =========
</TABLE>
<TABLE>
<CAPTION>
Equity Income Fund
--------------------------------------------------------------------
Year Ended 10/31/98 01/01/97* through 10/31/97
---------------------------------- -------------------------------
Amount Shares Amount Shares
---------------- --------------- ---------------- ------------
<S> <C> <C> <C> <C>
Shares sold .................... $ 34,448,367 383,211 $ 29,196,797 313,613
Shares issued in exchange for
Common Trust Fund Assets
(see Note 1) ................. -- -- 828,838,615 9,754,471
Shares issued in reinvestment of
distributions ................ 176,267,974 2,050,336 1,367,260 15,284
Shares redeemed ................ (99,496,456) (1,089,232) (72,268,337) (779,026)
------------ ---------- ------------ ---------
Net increase in Trust shares
outstanding .................. $111,219,885 1,344,315 $787,134,335 9,304,342
============ ========== ============ =========
</TABLE>
<TABLE>
<CAPTION>
Large Cap Equity Fund
------------------------------------------------------------------
Year Ended 10/31/98 01/01/97* through 10/31/97
------------------------------- --------------------------------
Amount Shares Amount Shares
---------------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
Shares sold .................... $50,466,877 133,147 $ 7,670,676 16,722
Shares issued in exchange for
Common Trust Fund Assets
(see Note 1) ................. -- -- 200,538,629 489,840
Shares issued in reinvestment of
distributions ................ 5,956,908 16,109 22,438 52
Shares redeemed ................ (35,207,651) (84,735) (64,147,877) (142,792)
----------- ------- ------------ --------
Net increase in Trust shares
outstanding .................. $21,216,134 64,521 $144,083,866 363,822
=========== ======= ============ ========
</TABLE>
92
<PAGE>
Chase Vista Select Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Large Cap Growth Fund
------------------------------------------------------------------
Year Ended 10/31/98 01/01/97* through 10/31/97
-------------------------------- -------------------------------
Amount Shares Amount Shares
---------------- ------------- ---------------- ------------
<S> <C> <C> <C> <C>
Shares sold .................... $21,848,651 215,821 $ 33,523,782 413,187
Shares issued in exchange for
Common Trust Fund Assets
(see Note 1) ................. -- -- 446,275,715 5,718,447
Shares issued in reinvestment of
distributions ................ 50,837,657 562,992 133,131 1,660
Shares redeemed ................ (62,722,758) (601,264) (40,694,688) (475,449)
----------- -------- ------------ ---------
Net increase in Trust shares
outstanding .................. $ 9,963,550 177,549 $439,237,940 5,657,845
=========== ======== ============ =========
</TABLE>
<TABLE>
<CAPTION>
New Growth Opportunities Fund
-----------------------------------------------------------------
Year Ended 10/31/98 01/01/97* through 10/31/97
------------------------------- -------------------------------
Amount Shares Amount Shares
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
Shares sold .................... $ 8,653,994 13,008 $ 12,449,526 21,149
Shares issued in exchange for
Common Trust Fund Assets
(see Note 1) ................. -- -- 126,731,600 221,746
Shares issued in reinvestment of
distributions ................ 7,426,761 12,801 49 2
Shares redeemed ................ (10,241,106) (15,924) (36,291,635) (63,258)
----------- ------- ------------ -------
Net increase in Trust shares
outstanding .................. $ 5,839,649 9,885 $102,889,540 179,639
=========== ======= ============ =======
</TABLE>
<TABLE>
<CAPTION>
Small Cap Value Fund
-------------------------------------------------------------------
Year Ended 10/31/98 01/01/97* through 10/31/97
-------------------------------- --------------------------------
Amount Shares Amount Shares
---------------- ------------- ---------------- -------------
<S> <C> <C> <C> <C>
Shares sold .................... $24,074,093 410,227 $ 65,913,927 1,206,998
Shares issued in exchange for
Common Trust Fund Assets
(see Note 1) ................. -- -- 391,143,652 7,540,473
Shares issued in reinvestment of
distributions ................ 16,068,607 283,892 1,491 25
Shares redeemed ................ (47,997,160) (814,760) (36,598,273) (692,399)
----------- -------- ------------ ---------
Net increase in Trust shares
outstanding .................. $(7,854,460) (120,641) $420,460,797 8,055,097
=========== ======== ============ =========
</TABLE>
<TABLE>
<CAPTION>
International Equity Fund
------------------------------------------------------------------
Year Ended 10/31/98 01/01/97* through 10/31/97
-------------------------------- -------------------------------
Amount Shares Amount Shares
---------------- ------------- ---------------- ------------
<S> <C> <C> <C> <C>
Shares sold .................... $ 16,703,790 94,176 $ 68,517,763 382,789
Shares issued in exchange for
Common Trust Fund Assets
(see Note 1) ................. -- -- 235,112,660 1,368,148
Shares issued in reinvestment of
distributions ................ 13,025,814 79,275 177 2
Shares redeemed ................ (51,587,320) (287,978) (54,982,442) (311,311)
------------ -------- ------------ ---------
Net increase in Trust shares
outstanding .................. $(21,857,716) (114,527) $248,648,158 1,439,628
============ ======== ============ =========
</TABLE>
*Commencement of operations
93
<PAGE>
Chase Vista Select Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
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 year ended October 31, 1998, included in
Trustees Fees and Expenses in the Statement of Operations, and accrued pension
liability included in other accrued liabilities, in the Statement of Assets and
Liabilities were as follows:
<TABLE>
<CAPTION>
Pension Accrued Pension
Expenses Liability
---------- ----------------
<S> <C> <C>
CVSBF ........... $3,012 $ 7,759
CVSEIF .......... 16,237 40,461
CVSLCEF ......... 2,999 8,319
CVSLCGF ......... 9,462 24,373
CVSNGOF ......... 1,908 5,409
CVSSCVF ......... 7,973 19,996
CVSIEF .......... 4,192 10,941
</TABLE>
7. Open Forward Foreign Currency Contracts -- The following forward foreign
currency contracts were held by the Funds at October 31, 1998.
<TABLE>
<CAPTION>
International Equity Fund
- -----------------------------------------------------------------------------------------
Contract Contract
Amount Amount Net Unrealized
Purchased/ (Purchased)/ Settlement Gain (Loss)
(Sold) Sold Date (USD)
- -------------------------- --------------------------- ------------ ---------------
<S> <C> <C> <C> <C> <C>
Unrealized Gain
- ------------------
6,700,000 (GBP) 18,227,484,000 (ITL) 11/10/98 $ 86,905
29,705,550,000 (ITL) 10,500,000 (GBP) 11/10/98 559,760
2,280,000,000 (JPY) 28,564,280 (DEM) 12/10/98 2,404,523
856,000,000 (JPY) 3,962,321 (GBP) 12/09/98 768,071
1,185,000,000 (JPY) 5,923,815 (GBP) 12/09/98 330,319
202,500,000 (JPY) 1,501,335 (USD) 11/10/98 239,191
3,489,828,000 (JPY) 25,641,175 (USD) 11/10/98 4,354,565
-----------
$ 8,743,334
-----------
Unrealized Loss
- ------------------
21,282,714 (DEM) 7,717,000 (GBP) 12/10/98 $ (19,472)
35,521,200 (DEM) 13,000,000 (GBP) 12/11/98 (231,328)
10,871,914 (DEM) 855,000,000 (JPY) 12/10/98 (804,705)
18,129,194 (DEM) 1,425,000,000 (JPY) 12/10/98 (1,335,526)
3,800,000 (GBP) 10,640,380,000 (ITL) 11/10/98 (135,310)
3,804,444 (GBP) 856,000,000 (JPY) 12/09/98 (1,031,907)
(11,590,000) (HKP) (1,496,256) (USD) 11/03/98 (37)
(3,692,328,000) (JPY) (28,213,708) (USD) 12/10/98 (3,522,557)
-----------
$(7,080,842)
-----------
</TABLE>
DEM - Deutsche Mark
GBP - Great Britan Pound
HKD - Hong Kong Dollar
ITL - Italian Lira
JPY - Japanese Yen
94
<PAGE>
Chase Vista Select Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
8. Foreign Cash Positions
<TABLE>
<CAPTION>
International Equity Fund
--------------------------------------------------------------
Delivery Net
Value Market Unrealized
(Local Cost Value Gain (Loss)
Currency Currency) (USD) (USD) (USD)
- --------------------------- ------------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
Australian Dollar ......... 370 $ 178 $ 231 $ 53
Austrian Shilling ......... 112,890 9,788 9,688 (100)
Belgian Franc ............. 4,474 132 131 (1)
Dutch Guilder ............. 1,155,524 619,129 618,696 (433)
Finnish Markka ............ 164,773 32,120 32,703 583
French Franc .............. 3,299,965 593,854 593,852 (2)
German Deutsche Mark ...... 18,030,781 10,886,993 10,886,990 (3)
Hong Kong Dollar .......... 11,595,837 1,496,625 1,497,048 423
Italian Lira .............. 14,001,679 8,706 8,547 (159)
Japanese Yen .............. 438,272 3,700 3,761 61
Malaysian Ringgit ......... 48,925 12,231 9,010 (3,221)
Philipean Peso ............ 732,038 16,867 18,142 1,275
Portuguese Escudo ......... 63,057 366 371 5
Singapore Dollar .......... 605,188 372,194 371,684 (510)
Spanish Peseta ............ 13,467,960 96,697 95,439 (1,258)
Swedish Krona ............. 51,311 6,624 6,564 (60)
Swiss Franc ............... 123,764 91,398 91,400 2
Thai Baht ................. 29,679 763 808 45
United Kingdom Pound ...... 1,395,420 2,380,951 2,336,910 (44,041)
----------- ----------- ----------
$16,629,316 $16,581,975 $(47,341)
=========== =========== ==========
</TABLE>
9. Bank Borrowings --The Funds may borrow money for temporary or emergency
purposes. Any borrowings representing more than 5% of a Fund's total assets
must be repaid before the Fund may make additional investments. The Funds have
entered into an agreement, enabling them to participate with other Chase Vista
Funds in an unsecured line of credit with a syndicate of banks, which permits
borrowings up to $350 million, collectively. Interest is charged to each Fund
based on its borrowings at an annual rate equal to the sum of the Federal Funds
Rate plus 0.35%. The Funds also pay a commitment fee of 0.055% per annum on the
average daily amount of the available commitment, which is allocated, on a
pro-rata basis to the funds. The commitment fee is included in Other expenses
on the Statement of Operations. Borrowings are payable on demand.
The Funds had no borrowings outstanding at October 31, 1998, nor at any point
during the year.
10. Concentrations-- At October 31, 1998, substantially all of the net assets
of CVSIEF consist of securities of issuers which are denominated in foreign
currencies. Changes in currency exchange rates will affect the value of and
investment income from such securities.
As of October 31, 1998, CVSIEF invested approximately 18.9% and 19.3% of its
net assets in issuers in the United Kingdom and France, respectively. The
issuers' abilities to meet their obligations may be affected by economic or
political developments in the specific region or country.
95
<PAGE>
Chase Vista Select Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
11. Subsequent Events-- Effective November 20, 1998, the following Chase Vista
Select Funds underwent a split of shares:
<TABLE>
<CAPTION>
Fund: Split Ratio:
- ----------- ----------------
<S> <C>
CVSEIF 3 shares for 1
CVSIEF 6 shares for 1
CVLCEF 11 shares for 1
CVLCGF 3 shares for 1
CVSNGOF 20 shares for 1
</TABLE>
Net assets of the Funds and values of each shareholder account were unaffected
by the split.
96
<PAGE>
<TABLE>
<CAPTION>
Chase Vista Mutual Funds
Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
Chase Vista Select
---------------------------------------------------
Equity
Balanced Income
Fund Fund
------------------------- -------------------------
Year 01/01/97* Year 01/01/97*
Ended Through Ended Through
10/31/98 10/31/97 10/31/98 10/31/97
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period .................................. $ 34.08 $ 30.62 $ 102.65 $ 84.97
------- ------- -------- --------
Income from Investment Operations:
Net investment income (loss) ........................................ 1.316 1.171 2.565 2.371
Net Gains or Losses in Securities (both realized and unrealized)..... 3.054 3.460 4.512 17.680
-------- -------- -------- --------
Total From Investment Operations .................................... 4.370 4.631 7.077 20.051
-------- -------- -------- --------
Less Distributions:
Dividends from net investment income ................................ 1.314 1.171 2.503 2.371
Distributions from Capital Gains .................................... 3.606 -- 20.544 --
-------- -------- -------- --------
Total Distributions ................................................ 4.920 1.171 23.047 2.371
-------- -------- -------- --------
Net Asset Value, End of Period ........................................ $ 33.53 $ 34.08 $ 86.68 $ 102.65
======== ======== ======== ========
Total Return .......................................................... 14.28% 15.36% 7.62% 23.78%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) .............................. $152,102 $179,183 $922,977 $955,137
Ratios to average net assets:#
Ratio of expenses .................................................... 0.03% 0.03% 0.03% 0.03%
Ratio of net investment income ....................................... 3.98% 4.29% 2.85% 2.97%
Ratio of expenses without waivers and assumption of expenses ......... 0.75% 0.72% 0.59% 0.59%
Ratio of net investment income without waivers and assumption
of expenses ......................................................... 3.26% 3.60% 2.29% 2.41%
Portfolio turnover rate ............................................... 50% 131% 148% 73%
<CAPTION>
Chase Vista Select
---------------------------------------------------
Large Cap Large Cap
Equity Growth
Fund Fund
------------------------- -------------------------
Year 01/01/97* Year 01/01/97*
Ended Through Ended Through
10/31/98 10/31/97 10/31/98 10/31/97
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period .................................. $ 512.37 $ 409.39 $ 96.89 $ 78.04
-------- -------- -------- -------
Income from Investment Operations:
Net investment income (loss) ........................................ 6.153 6.506 1.008 0.827
Net Gains or Losses in Securities (both realized and unrealized)..... 57.892 102.979 24.695 18.849
-------- -------- -------- --------
Total From Investment Operations .................................... 64.045 109.485 25.703 19.676
-------- -------- -------- --------
Less Distributions:
Dividends from net investment income ................................ 6.150 6.505 1.009 0.826
Distributions from Capital Gains .................................... 157.595 -- 9.514 --
-------- -------- -------- --------
Total Distributions ................................................ 163.745 6.505 10.523 0.826
-------- -------- -------- --------
Net Asset Value, End of Period ........................................ $ 412.67 $ 512.37 $ 112.07 $ 96.89
======== ======== ======== ========
Total Return .......................................................... 16.58% 26.89% 29.12% 25.32%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) .............................. $176,762 $186,413 $653,986 $548,162
Ratios to average net assets:#
Ratio of expenses .................................................... 0.03% 0.03% 0.02% 0.02%
Ratio of net investment income ....................................... 1.46% 1.66% 0.98% 1.12%
Ratio of expenses without waivers and assumption of expenses ......... 0.65% 0.58% 0.60% 0.60%
Ratio of net investment income without waivers and assumption
of expenses ......................................................... 0.86% 1.11% 0.40% 0.54%
Portfolio turnover rate ............................................... 56% 54% 22% 36%
</TABLE>
- -------
* Commencement of operations.
# Short periods have been annualized
See notes to financial statements.
97
<PAGE>
<TABLE>
<CAPTION>
Chase Vista Mutual Funds
Financial Highlights
- -------------------------------------------------------------------------------------------
Chase Vista Select
--------------------------
New Growth
Opportunities
Fund
--------------------------
Year 01/01/97*
Ended Through
10/31/98 10/31/97
------------- ------------
<S> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ........................... $ 647.83 $ 571.52
-------- --------
Income from Investment Operations:
Net investment income (loss) ................................. 2.758 2.914
Net Gains or Losses in Securities (both realized and unrealized) (8.319) 76.149
--------- ---------
Total From Investment Operations ............................. (5.561) 79.063
--------- ---------
Less Distributions:
Dividends from net investment income ......................... 2.656 2.753
Distributions from Capital Gains ............................. 46.943 --
--------- ---------
Total Distributions ......................................... 49.599 2.753
--------- ---------
Net Asset Value, End of Period ................................. $ 592.67 $ 647.83
========= =========
Total Return ................................................... (0.70)% 13.90%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) ....................... $112,326 $116,375
Ratios to average net assets:#
Ratio of expenses ............................................. 0.08% 0.08%
Ratio of net investment income ................................ 0.43% 0.57%
Ratio of expenses without waivers and assumption of expenses .. 0.94% 0.92%
Ratio of net investment income without waivers and assumption
of expenses .................................................. (0.43%) (0.27%)
Portfolio turnover rate ........................................ 67% 50%
<CAPTION>
Chase Vista Mutual Funds
Financial Highlights
- --------------------------------------------------------------------------------------------------------------------
Chase Vista Select
---------------------------------------------------
Small Cap International
Value Equity
Fund Fund
------------------------- -------------------------
Year 01/01/97* Year 01/01/97*
Ended Through Ended Through
10/31/98 10/31/97 10/31/98 10/31/97
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ........................... $ 60.54 $ 51.87 $ 176.71 $ 171.85
------- ------- -------- --------
Income from Investment Operations:
Net investment income (loss) ................................. 0.745 0.574 2.459 2.662
Net Gains or Losses in Securities (both realized and unrealized (5.723) 8.620 5.409 4.614
-------- -------- -------- --------
Total From Investment Operations ............................. (4.978) 9.194 7.868 7.276
-------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......................... 0.752 0.524 7.475 2.416
Distributions from Capital Gains ............................. 2.080 -- 10.363 --
-------- -------- -------- --------
Total Distributions ......................................... 2.832 0.524 17.838 2.416
-------- -------- -------- --------
Net Asset Value, End of Period ................................. $ 52.73 $ 60.54 $ 166.74 $ 176.71
======== ======== ======== ========
Total Return ................................................... (8.53)% 17.80% 4.80% 4.15%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) ....................... $418,357 $487,643 $220,945 $254,402
Ratios to average net assets:#
Ratio of expenses ............................................. 0.02% 0.02% 0.05% 0.07%
Ratio of net investment income ................................ 1.28% 1.26% 1.71% 1.66%
Ratio of expenses without waivers and assumption of expenses .. 0.85% 0.85% 1.34% 1.27%
Ratio of net investment income without waivers and assumption
of expenses .................................................. 0.45% 0.43% 0.42% 0.46%
Portfolio turnover rate ........................................ 6% 8% 150% 141%
</TABLE>
- -------
* Commencement of operations.
# Short periods have been annualized
See notes to financial statements.
98
<PAGE>
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of
Mutual Fund Select Group
In our opinion, the accompanying statement of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Chase Vista Select Balanced Fund,
Chase Vista Select Equity Income Fund, Chase Vista Select Large Cap Equity Fund,
Chase Vista Select Large Cap Growth Fund, Chase Vista Select New Growth
Opportunities Fund, Chase Vista Select Small Cap Value Fund and Chase Vista
Select International Equity Fund (separate portfolios of Mutual Fund Select
Group, hereafter referred to as the "Trust") at October 31, 1998, the results of
each of their operations for the year then ended, and changes in each of their
net assets and the financial highlights for the year then ended and for the
period January 1, 1997 (commencement of operations) through October 31, 1997, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at October
31, 1998 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
December 15, 1998
99
<PAGE>
Unaudited
Chase Vista Select Balanced Fund
Chase Vista Select Equity Income Fund
Chase Vista Select Large Cap Equity Fund
Chase Vista Select Large Cap Growth Fund
Chase Vista Select New Growth Opportunities Fund
Chase Vista Select Small Cap Value Fund
Chase Vista Select International Equity Fund
- -------------------------------------------------------------------------------
Certain tax information regarding the Chase Vista Mutual Funds is required to
be provided to shareholders based upon the Funds' income and distributions
for the taxable year ended October 31, 1998. The information and distributions
reported in this letter may differ from the information and distributions
taxable to the shareholders for the calendar year ending December 31, 1998. The
information necessary to complete your income tax returns for the calendar year
ending December 31, 1998 will be received under separate cover.
FOR THE FISCAL YEAR ENDED OCTOBER 31, 1998.
The following represents the source and percentage of income earned from
government obligations, the percentage of distributions eligible for the
dividends received deduction and the long-term capital gains distributed per
share by the Funds:
<TABLE>
<CAPTION>
Federal Home
Chase U.S. Treasury Federal Home Loan Mortgage
Vista Fund Obligations Loan Bank Corporation
- -------------------------------------- --------------- -------------- ---------------
<S> <C> <C> <C>
Select Balanced Fund 14.52% 1.41% 2.99%
Select Equity Income Fund 9.37% 0.05% --
Select Large Cap Equity Fund 0.14% 0.14% --
Select Large Cap Growth Fund -- -- --
Select New Growth Opportunities Fund -- 1.00% --
Select Small Cap Value Fund -- 0.31% --
Select International Equity Fund -- -- --
<CAPTION>
Long-Term
Government Dividends Capital Gains
Chase Federal National National Mortgage Received Distribution
Vista Fund Mortgage Association Association Deduction Per Share
- -------------------------------------- ---------------------- ------------------- ----------- --------------
<S> <C> <C> <C> <C>
Select Balanced Fund 9.85% 3.27% -- $ 3.47
Select Equity Income Fund -- -- -- $ 16.18
Select Large Cap Equity Fund -- -- -- $140.40
Select Large Cap Growth Fund -- -- 99.35% $ 9.51
Select New Growth Opportunities Fund -- -- 24.91% $ 46.94
Select Small Cap Value Fund -- -- -- $ 2.08
Select International Equity Fund -- -- -- $ 7.51
</TABLE>
100
<PAGE>
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<PAGE>
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<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
CHASE VISTA SERVICE CENTER
P.O. BOX 419392
Kansas City, MO 64179
Investment Adviser, Administrator,
Shreholder and Fund Servicing Agent
and Custodian
The Chase Manhattan Bank
Distributor
Vista Fund Distributors, Inc.
Transfer Agent
DST Systems, Inc.
Legal Counsel
Simpson Thacher & Bartlett
Independent Accountants
PricewaterhouseCoopers LLP
Chase Vista Select Fund are distributed by Vista Fund Distributors, Inc., which
is unaffiliated with The Chase Manhattan Bank. Chase and its representative
affiliates receive compensation from Chase Vista Select Fund for providing
investment advisory and other services.
This report is submitted for the general information of teh shareholders of the
funds. It is not authorized for distribution to prospective investors in the
funds unless preceded or accompanied by a prospectus.
To obtain a prospectus for any of the Chase Vista Select Funds, call 1-800-34-
VISTA. The prospectus contains more complete information, including charges and
expenses. Please read it carefully before you invest or send money.
<PAGE>
(c)The Chase Manhattan Bank, 1998, 1999.
December 1998
Chase Vista Funds
Fulfillment Center
393 Manley Street
West Bridgewater, MA 02379-1039
