APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Chase Vista Select
Fixed Income Funds
SEMI-ANNUAL REPORT
SELECT BOND FUND
SELECT INTERMEDIATE BOND FUND
SELECT SHORT-TERM BOND FUND
[CHASE VISTA FUNDS(SM) LOGO]
SASEQ1-3-699
<PAGE>
Highlights
o The U.S. economy grew at a stronger-than-expected annual rate of 6% in the
fourth quarter of 1998 and 4.5% in the first quarter of 1999.
o The yield on the 30-year U.S. Treasury bond rose from 5.15% on November 1,
1998 to 5.66% on April 30, 1999.
o On a relative basis, the spread sectors recovered strongly from their October
lows and outperformed U.S. Treasury securities significantly during the
reporting period. The spread sectors include corporate, mortgage-backed,
asset-backed and commercial mortgage-backed securities.
- --------------------------------------------------------------------------------
CONTENTS
- --------------------------------------------------------------------------------
Chairman's Letter 3
Chase Vista Select Bond Fund
Fund Commentary o Portfolio of Investments 4
Chase Vista Select Intermediate Bond Fund
Fund Commentary o Portfolio of Investments 14
Chase Vista Select Short-Term Bond Fund
Fund Commentary o Portfolio of Investments 24
Financial Statements 31
Notes to Financial Statements 34
Financial Highlights 37
- --------------------------------------------------------------------------------
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
Chairman's Letter
June 1, 1999
Dear Shareholder:
We are pleased to present this semi-annual report for the following Chase Vista
Select Fixed Income Funds for the period ended April 30, 1999:
o Bond Fund
o Intermediate Bond Fund
o Short-Term Bond Fund
Sizzling Growth, Little Inflation: Strong U.S. Economic Performance Continues
As economists look back at the 1990s, the sterling performance of the U.S.
economy is sure to be among the highlights of the decade. Not only did the
economy enter its ninth year of expansion during the reporting period, but the
annual rate of growth accelerated sharply to a sizzling 6% in the fourth
quarter of 1998 before cooling slightly to a still-impressive 4.5% in the first
quarter of 1999.
Despite the fast pace of growth, the Federal Reserve Board maintained a neutral
policy after reducing the Federal Funds rate by .25% on November 11, 1998, the
third of three similar cuts that began in September. Such an accommodative
stance in the face of a surging economy was prompted by ongoing concerns about
the fragile state of the global economy, and was further supported by a
continuing absence of domestic inflationary pressures.
The Markets React to Growth: Longer-Term Interest Rates Rise
While the Fed held monetary policy steady, the bond markets reacted to the
growth by pushing interest rates higher (and bond prices lower) over the
reporting period. The rate on the benchmark 30-year U.S. Treasury bond rose from
5.15% on October 31, 1998 to 5.66% on April 30, 1999, with most of increase
occurring in February and March of this year. Also behind the selloff in
longer-term Treasuries as the period progressed were signs that the global
economy had bottomed out and begun to recover. With fears of a global meltdown
subsiding, the "flight to quality" by global investors seeking a safe haven in
the world's safest securities reversed and investors were once again willing to
assume the additional risks of corporate securities, leading Treasuries to
underperform most other types of bonds on a relative basis.
Your portfolio management team rose to the occasion of this challenging
environment, working diligently to protect your investment and provide you with
competitive levels of current income. While it's impossible to predict what the
markets will do, you can surely expect that all of us at Chase Vista will
continue to do our best to deliver solid investments and help you reach your
financial goals. We appreciate your continued trust and support.
Sincerely,
/s/ Fergus Reid
- ---------------
Fergus Reid
Chairman
3
<PAGE>
Chase Vista Select Bond Fund
as of April 30, 1999
(unaudited)
Fund Facts
<TABLE>
<S> <C>
Objective Income
Primary investments Debt obligations of the U.S. government,
its agencies and instrumentalities and
investment-grade fixed income securities.
Suggested investment time frame Long-term
Market benchmark Lehman Aggregate Bond Index
Lipper Funds category Corporate Debt A-Rated Funds Average
Inception date 1/1/97
Newspaper symbol Bond
Net assets $609.0 million
Average maturity 7.8 years
Average duration 4.9 years
Average quality AAA
</TABLE>
Average Maturity/Quality
[9 BLOCK GRAPHIC]
High Med. Low
---- ---- ---
Short
Int. X
Long
4
<PAGE>
Chase Vista Select Bond Fund
as of April 30, 1999
(unaudited)
How the Fund Performed
Chase Vista Select Bond Fund, which seeks to provide a high level of current
income through a portfolio of investment-grade Treasury, corporate, mortgage-
backed and asset-backed securities, had a total return of 0.44% for the six
months ended April 30, 1999.
How the Fund Was Managed
Since bond prices and interest rates generally move in opposite directions, the
rising interest rate environment of the reporting period proved challenging for
all fixed income fund managers. However, by actively managing your portfolio's
duration, sector allocations and security selections, the management team was
able to reduce the effect of lower prices while maximizing the Fund's return.
After taking advantage of the end of the rally in Treasuries as the period
opened, the management team correctly anticipated the onset of the higher rate
environment by reducing duration to only a slightly long stance and moving back
into the "spread" sectors, which include corporates, mortgage-backed and asset-
backed securities. While performance across the spread sectors was mixed, the
strategy proved to be the right one as first high quality corporates and
mortgage-backed securities, and later lower quality securities including
Yankees, asset-backed and commercial mortgage-backed (structured) securities,
came back from their October 1998 lows and outperformed Treasuries on a relative
basis.
By the end of 1998, the Fund had only a slightly-long duration and was
overweight in mortgage-backed and structured securities, neutral corporates and
underweight Treasuries. Starting in January 1999, the Fund began to move more
aggressively into lower-quality corporates due to the strong economy and the
return of liquidity to the markets. It also benefited in the first quarter from
its holdings in asset- and commercial mortgage-backed securities as these were
the last to recover from 1998's difficult spread sector market conditions.
As 1999 progressed and interest rates continued to rise, the management team
continued to reduce the Fund's duration down to neutral. Since a lower duration/
spread sector bias is advantageous in a range-bound to slightly rising interest
rates scenario, the Fund ended the reporting period with an almost neutral
duration and a continued overweight in the spread sectors.
Where the Fund May Be Headed
After the period ended, the Federal Reserve Board adopted a tightening bias,
meaning that it will be inclined to raise interest rates should the economy
fail to moderate as expected, especially if what are now early signs of a
slight pick up in inflation prove sustainable. However, we continue to expect
the economy to slow later in 1999, partially due to the effects of the higher
long-term interest rates. Therefore, we're maintaining a neutral yet
opportunistic stance and will take advantage of market overreactions by
extending durations as we move further into the second quarter.
5
<PAGE>
Chase Vista Select Bond Fund
as of April 30, 1999
(unaudited)
How Much of the Fund Was Invested
[PIE CHART]
Cash/Other (4.62%)
Investments (95.38%)
[END PIE CHART]
What the Fund Invested In
Percentage of Total Portfolio Investments
[PIE CHART]
Asset Backed Securities (6.5%)
Cash Equivalents & Short-Term Paper (3.2%)
Commercial Mortgage Backed Securities (6.7%)
Corporate Notes & Bonds (24.8%)
Residential Mortgage Backed Securities (36.0%)
U.S. Government Agency Obligations (2.2%)
U.S. Treasury Securities (20.6%)
[END PIE CHART]
Average Annual Total Returns+
This table shows the average annual total returns. This is where you can see the
Fund's short-term performance, which, as with the securities markets, tends to
be more volatile than the long-term trend.
<TABLE>
<CAPTION>
1 Year 5 Years 10 Years
------ ------- --------
<S> <C> <C> <C>
Select Bond 5.69% 7.42% 8.44%
</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 Bond 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.
6
<PAGE>
Chase Vista Select Bond Fund
as of April 30, 1999
(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 Bond Fund compared to its key
benchmarks. This is where you see the Fund's long-term trend. This chart is for
illustrative purposes only.
<TABLE>
<CAPTION>
Chase Vista Select Lehman Aggregate Lipper Corp. Debt
Bond Fund Bond Index A-Rated Funds Average
<S> <C> <C> <C>
1989 10000 10000 10000
1990 10881 10901.3 10682.5
1991 12334.9 12555.8 12175.3
1992 13625.5 13937 13518.9
1993 15456.4 15786.7 15476.5
1994 15718.5 15918.6 15606.7
1995 16642.7 17084.5 16536.2
1996 18205 18559.5 17836.7
1997 19355.4 19874.3 18985
1998 21279.8 22041.8 20983.5
1999 22490.8 23423.1 21981.6
</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 Bond Fund, the Lehman Aggregate Bond Index, and the
Lipper Corporate Debt A-Rated Funds Average for the 10 years ended 4/30/99. 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 Lehman Aggregate Bond Index is composed of the Lehman Government/Corporate
Index and the Mortgage-Backed Securities Index and includes U.S. Treasury,
agency and corporate bond issues and mortgage-backed securities. The index is
unmanaged and reflects the reinvestment of dividends. An individual cannot
invest in an index.
The Lipper Corporate Debt A-Rated Funds Average represents the average
performance of a universe of 149 actively managed corporate debt A-Rated or
better 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 Bond 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.
<PAGE>
Chase Vista Select Bond Fund
Portfolio of Investments April 30, 1999 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ------------------------------------------------------------
Long-Term Investments -- 94.5%
- ------------------------------------------------------------
<S> <C> <C>
U. S. Treasury Securities -- 20.2%
----------------------------------
U.S. Treasury Notes & Bonds, @
$ 20,000 5.00%, 02/28/01 $19,972
50,000 5.25%, 08/15/03 49,977
5,000 6.88%, 08/15/25 5,642
37,500 8.13%, 08/15/19 47,145
-------
Total U.S. Treasury Securities 122,736
(Cost $123,807) -------
U.S. Government Agency Obligations -- 2.1%
------------------------------------------
11,000 Federal Home Loan Bank, 5.13%,
09/15/03 10,802
2,050 Federal National Mortgage Association,
5.88%, 04/23/04 2,040
-------
Total U.S. Government Agency 12,842
Obligations (Cost $13,033) -------
Corporate Notes & Bonds -- 24.2%
--------------------------------
Automotive -- 1.1%
7,000 General Motors Acceptance Corp.,
5.50%, 01/14/02 6,944
-------
Banking -- 5.1%
5,000 Key Bank of Washington, 7.13%,
08/15/06 5,221
6,150 Korea Development Bank, (South
Korea), @ 7.13%, 09/17/01 6,170
5,875 Providian National Bank, 6.75%,
03/15/02 5,941
7,500 Sovereign Bancorp, Inc., @ 6.63%,
03/15/01 7,517
6,800 US Bank NA, 5.70%, 12/15/08 6,466
-------
31,315
-------
Business Services -- 0.3%
1,635 Comdisco Inc., 5.95%, 04/30/02 1,628
-------
</TABLE>
See notes to financial statements.
8
<PAGE>
Chase Vista Select Bond Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- --------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
Consumer Products -- 0.5%
$ 3,000 Philip Morris Companies Inc., 7.00%,
07/15/05 $ 3,078
--------
Diversified -- 1.8%
Tyco International Group, SA
(Luxemburg) #, @
6,000 5.88%, 11/01/04 5,936
5,000 6.88%, 01/15/29 4,871
--------
10,807
--------
Entertainment/Leisure -- 1.6%
5,000 Time Warner Inc., 7.75%, 06/15/05 5,345
4,225 USA Networks, Inc. #, 6.75%,
11/15/05 4,199
--------
9,544
--------
Financial Services -- 2.5%
4,650 Heller Financial Inc., 6.00%, 03/19/04 4,620
7,045 Lehman Brothers Holdings Inc.,
6.38%, 03/15/01 7,075
3,675 Newcourt Credit Group #, 7.13%,
12/17/03 3,808
--------
15,503
--------
Food/Beverage Products -- 1.8%
11,050 Pepsi Bottling Group, Inc. #, @
7.00%, 03/01/29 11,004
--------
Industrial Components -- 1.0%
6,650 Conoco Inc., 5.90%, 04/15/29 6,500
--------
Insurance -- 2.0%
5,250 Hartford Financial Services Group, @
6.38%, 11/01/08 5,215
7,450 Progressive Corp., 6.63%, 03/01/29 6,943
--------
12,158
--------
Retailing -- 1.8%
5,000 Saks, Inc., @ 7.38%, 02/15/19 4,922
</TABLE>
See notes to financial statements.
9
<PAGE>
Chase Vista Select Bond Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ----------------------------------------------------------
Long-Term Investments -- (continued)
- ----------------------------------------------------------
<S> <C> <C>
$ 5,850 Kroger Co., @ 6.38%, 03/01/08 $ 5,782
-------
10,704
-------
Telecommunications -- 2.3%
9,245 AT&T Corp., @ 6.00%, 03/15/09 9,036
5,000 GTE Northwest Inc., @ 5.55%,
10/15/08 4,747
-------
13,783
-------
Utilities -- 2.4%
5,050 National Rural Utilities Cooperative
Finance Corp., @ 5.50%, 01/15/05 4,934
4,050 Texas Utilities Electric Co., 6.75%,
03/01/03 4,130
5,500 United Illuminating Co., @ 6.00%,
12/15/03 5,391
-------
14,455
-------
Total Corporate Notes & Bonds 147,423
(Cost $148,938) -------
Residential Mortgage Backed Securities -- 35.1%
-----------------------------------------------
Mortgage-Backed Pass Through Securities -- 31.9%
Federal Home Loan Mortgage Corp.,
24,998 Gold Pool N98213, 5.50%,
02/01/06 24,552
11,962 Pool 252339, 6.00%, 03/01/29 11,592
Federal National Mortgage Association,
34,880 Pool 252093, 6.50%, 11/01/28 34,651
2,500 Pool 252435, 6.00%, 04/01/14 2,476
4,829 Pool 303784, 7.00%, 03/01/11 4,933
39,869 Pool 323633, 7.00%, 03/01/29 40,392
28,391 Pool 323645, 7.50%, 04/01/29 29,181
9,740 Pool 484753, 6.50%, 03/01/29 9,676
30,000 TBA, 7.00%, 04/01/14 30,647
6,000 TBA, 7.50%, 03/01/29 6,167
-------
194,267
-------
</TABLE>
See notes to financial statements.
10
<PAGE>
Chase Vista Select Bond Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -------------------------------------------------------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
Collateralized Mortgage Obligations -- 3.2%
$ 2,000 Federal Farm Credit Association
Secured Lending Corporation, Ser.
1997-1, FRN, 5.68%, 02/12/12 $ 1,916
7,675 Federal Home Loan Mortgage Corp.,
Ser. 2117, Class PA, 6.00%,
03/15/06 7,706
10,000 Federal National Mortgage Association,
Ser. 1999-17, Class PC, 6.00%,
12/25/22 9,897
-------
19,519
-------
Total Residential Mortgage Backed 213,786
Securities (Cost $214,015) -------
Commercial Mortgage Backed Securities -- 6.5%
---------------------------------------------
12,000 Bear Stearns Commercial Mortgage
Securities, Ser. 1999-C1, Class A2,
6.02%, 02/14/09 11,659
5,000 GS Mortgage Securities Corp. II, Ser.
1997-GL, Class A2D, 6.94%,
07/13/30 5,142
7,132 Morgan Stanley Capital Inc., Ser.
1999-WF1, Class A1, 5.91%,
04/15/08 7,055
5,000 Morgan Stanley Capital Inc., Ser.
1998-WF1, 6.55%, 12/15/07 5,018
7,000 Nomura Depositor Trust, Ser. 1998-
ST1A, Class A3A, FRN #, 5.48%,
02/15/34 6,721
4,000 Structured Asset Securities Corp., Ser.
1998-2, Class M2, FRN, @ 5.69%,
02/25/28 3,983
-------
Total Commercial Mortgage Backed 39,578
Securities (Cost $40,487) -------
</TABLE>
See notes to financial statements.
11
<PAGE>
Chase Vista Select Bond Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -----------------------------------------------------------
Long-Term Investments -- (continued)
- -----------------------------------------------------------
<S> <C> <C>
Asset Backed Securities -- 6.4%
-------------------------------
$ 5,080 American Express Credit Account
Master Trust, Ser. 1997-1, Class A,
6.40%, 04/15/05 $ 5,175
12,500 Carco Auto Loan Master Trust, Ser.
1991-1, Class A2, 5.78%, 03/15/04 12,549
7,500 Citibank Credit Card Master Trust I,
Ser. 1997-2, Class A, 6.55%,
02/15/04 7,655
6,650 Discover Card Master Trust I, Ser.
1998-2, Class A, 5.80%, 09/16/03 6,669
6,500 Nomura CBO, Ltd., Ser. 1997-1, Class
A2 #, 6.67%, 05/15/09 6,868
--------
Total Asset Backed Securities 38,916
(Cost $38,883)
- -----------------------------------------------------------
Total Long-Term Investments 575,281
(Cost $579,163)
- -----------------------------------------------------------
Short-Term Investments -- 3.1%
- -----------------------------------------------------------
U.S. Treasury Security -- 0.1%
------------------------------
500 U.S. Treasury Bill, 4.55%, 06/03/99 498
(Cost $498) --------
Repurchase Agreement -- 3.0%
----------------------------
18,602 Greenwich Capital Markets, Inc.,
4.93%, due 5/3/99, (dated 4/30/99,
Proceeds $18,610, Secured by:
FMNA CMO $20,190, 5.50%, due
12/01/28; Market Value $18,977) 18,602
(Cost $18,602)
- -----------------------------------------------------------
Total Short-Term Investments 19,100
(Cost $19,100)
- -----------------------------------------------------------
Total Investments -- 97.6% $594,381
(Cost $598,263)
- -----------------------------------------------------------
</TABLE>
See notes to financial statements.
12
<PAGE>
Chase Vista Select Bond Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Number Original Notional Unrealized
of Expiration Notional Value at Appreciation/
Contracts Description Date Value 04/30/99 (Depreciation)
- ----------- ---------------- ------------ ---------- ---------- ---------------
<S> <C> <C> <C> <C> <C>
Long Futures Outstanding
200 U.S. Long Bond June 1999 $24,510 $24,038 ($ 472)
Short Futures Outstanding
150 U.S. 5 Year June 1999 $16,789 $16,671 $ 118
-----
Treasury Note ($ 354)
=====
</TABLE>
Index
# -- Security may only be sold to institutional buyers.
@ -- All or a portion of this security is segregated.
FRN -- The maturity shown is the final maturity date. The rate shown is the
rate in effect at April 30, 1999.
TBA -- To be announced.
FNMA -- Fannie Mae.
CMO -- Collateralized Mortgage Obligation.
See notes to financial statements.
13
<PAGE>
Chase Vista Select Intermediate Bond Fund
as of April 30, 1999
(unaudited)
Fund Facts
<TABLE>
<S> <C>
Objective Income
Primary investments Debt obligations of the U.S. Government,
its agencies and instrumentalities and
investment grade fixed income securities.
Suggested investment time frame Mid- to long-term
Market Benchmark Lehman Intermediate Govt/Corp Bond Index
Lipper Funds Category Intermediate Investment Grade Debt
Funds Average
Inception date 1/1/97
Newspaper symbol IntmdBd
Net assets $369.0 million
Average maturity 5.1 years
Average duration 3.7 years
Average quality AAA
</TABLE>
Average Maturity/Quality
[9 BLOCK GRAPHIC]
High Med. Low
---- ---- ---
Short
Int. X
Long
14
<PAGE>
Chase Vista Select Intermediate Bond Fund
as of April 30, 1999
(unaudited)
How the Fund Performed
Chase Vista Select Intermediate Bond Fund, which seeks to provide a high level
of current income through a portfolio of investment-grade U.S. Treasury,
corporate, mortgage-backed and asset-backed securities, had a total return of
0.38% for the six months ended April 30, 1999.
How the Fund Was Managed
Since bond prices and interest rates generally move in opposite directions, the
rising interest rate environment of the reporting period proved challenging for
all fixed income fund managers. However, by actively managing your portfolio's
duration, sector allocations and security selections, the management team was
able to reduce the effect of lower prices while maximizing the Fund's return.
After taking advantage of the end of the rally in Treasuries as the period
opened, the management team correctly anticipated the onset of the higher rate
environment by reducing duration to only a slightly long stance and moving back
into the "spread" sectors, which include corporates, mortgage-backed and asset-
backed securities. While performance across the spread sectors was mixed, the
strategy proved to be the right one as first high quality corporates and
mortgage-backed securities, and later lower quality securities including
Yankees, asset-backed and commercial mortgage-backed (structured) securities,
came back from their October 1998 lows and outperformed Treasuries on a relative
basis.
By the end of 1998, the Fund had only a slightly-long duration and was
overweight in mortgage-backed and structured securities, neutral corporates and
underweight Treasuries. Starting in January 1999, the Fund began to move more
aggressively into lower-quality corporates due to the strong economy and the
return of liquidity to the markets. It also benefited in the first quarter from
its holdings in asset- and commercial mortgage-backed securities as these were
the last to recover from 1998's difficult spread sector market conditions.
As 1999 progressed and interest rates continued to rise, the management team
continued to reduce the Fund's duration down to neutral. Since a lower duration/
spread sector bias is advantageous in a range-bound to slightly rising interest
rates scenario, the Fund ended the reporting period with an almost neutral
duration and a continued overweight in the spread sectors.
Where the Fund May Be Headed
After the period ended, the Federal Reserve Board adopted a tightening bias,
meaning that it will be inclined to raise interest rates should the economy
fail to moderate as expected, especially if what are now early signs of a
slight pick up in inflation prove sustainable. However, we continue to expect
the economy to slow later in 1999, partially due to the effects of the higher
long-term interest rates. Therefore, we're maintaining a neutral yet
opportunistic stance and will take advantage of market overreactions by
extending durations as we move further into the second quarter.
15
<PAGE>
Chase Vista Select Intermediate Bond Fund
as of April 30, 1999
(unaudited)
How Much of the Fund Was Invested
[PIE CHART]
Cash/Other (1.14%)
Investments (98.86%)
[END PIE CHART]
What the Fund Invested In
Percentage of Total Portfolio Investments
[PIE CHART]
Residential Mortgage Backed Securities (9.7%)
Corporate Notes & Bonds (29.1%)
U.S. Government Agency Obligations (11.1%)
U.S. Treasury Securities (30.3%)
Cash Equivalents & Short-Term Paper (8.6%)
Asset Backed Securities (5.4%)
Commercial Mortgage Backed Securities (5.8%)
[END PIE CHART]
Average Annual Total Returns+
This table shows the average annual total returns. This is where you can see the
Fund's short-term performance, which, as with the securities markets, tends to
be more volatile than the long-term trend.
<TABLE>
<CAPTION>
1 Year 5 Years 10 Years
------ ------- --------
<S> <C> <C> <C>
Select Intermediate Bond 5.36% 6.78% 7.88%
</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 Intermediate Bond 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.
16
<PAGE>
Chase Vista Select Intermediate Bond Fund
as of April 30, 1999
(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 Intermediate Bond Fund compared to
its key benchmarks. This is where you see the Fund's long-term trend. This
chart is for illustrative purposes only.
<TABLE>
<CAPTION>
Chase Vista Select Lehman Intermediate Lipper Intermediate Investment
Intermediate Bond Fund Govt/Corp Bond Index Grade Debt Funds Average
<S> <C> <C> <C>
1989 10000 10000 10000
1990 10867 10883.8 10704.9
1991 12343.6 12373.7 12109.7
1992 13636 13678.8 13406.8
1993 15512.8 15370.6 15130.8
1994 15387.5 15526.3 15216.4
1995 16337.6 16535.7 16117.5
1996 17632.7 17831.4 17358.6
1997 18666.2 18973.5 18464.9
1998 20281 20643.1 20259.1
1999 21367.1 22039.2 21301
</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 Intermediate Bond Fund, Lehman Intermediate
Government/Corporate Bond Index and the Lipper Intermediate Investment Grade
Debt Funds Average for the 10 years ended 4/30/99. 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 Lehman Intermediate Government/Corporate Bond Index is composed of the
government and corporate indexes, which includes bonds with 5-10 year
maturities, including U.S. Government Treasury and agency securities, and
corporate and Yankee bonds. The index is unmanaged and reflects reinvestment of
dividends. An individual cannot invest in the index.
The Lipper Intermediate Investment Grade Debt Funds Average represents the
average performance of a universe of 215 actively managed intermediate
investment grade debt 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 Intermediate Bond 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.
17
<PAGE>
Chase Vista Select Intermediate Bond Fund
Portfolio of Investments April 30, 1999 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- --------------------------------------------------------------
Long-Term Investments -- 92.0%
- --------------------------------------------------------------
<S> <C> <C>
U. S. Treasury Securities -- 30.5%
----------------------------------
U.S. Treasury Notes, @
$ 30,500 4.50%, 09/30/00 $ 30,266
3,000 4.75%, 02/15/04 2,941
10,000 4.75%, 11/15/08 9,552
3,000 4.88%, 03/31/01 2,989
22,958 5.25%, 08/15/03 22,947
1,150 5.63%, 05/15/08 1,167
2,650 5.75%, 08/15/03 2,698
15,000 6.25%, 08/31/02 15,471
17,000 6.50%, 05/31/02 17,616
6,500 6.50%, 08/15/05 6,892
-------
Total U.S. Treasury Securities 112,539
(Cost $113,810) -------
U.S. Government Agency Obligations -- 11.1%
-------------------------------------------
8,000 Federal Home Loan Bank, 4.88%,
01/22/02 7,872
Federal Home Loan Mortgage Corp.,
8,000 5.00%, 01/15/04 7,782
3,500 5.13%, 10/15/08 3,305
Federal National Mortgage Association, @
4,100 5.13%, 02/13/04 4,008
7,500 5.75%, 04/15/03 7,548
3,500 5.88%, 04/23/04 3,484
7,000 6.00%, 05/15/08 7,063
-------
Total U.S. Government Agency 41,062
-------
Obligations (Cost $41,911)
Corporate Notes & Bonds -- 29.3%
--------------------------------
Automotive -- 1.4%
5,110 Ford Motor Credit Co., @ 5.75%,
02/23/04 5,041
-------
</TABLE>
See notes to financial statements.
18
<PAGE>
Chase Vista Select Intermediate Bond Fund
Portfolio of Investments April 30, 1999 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- --------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
Banking -- 5.6%
$ 2,150 First Union National Bank, 5.80%,
12/01/08 $ 2,052
4,000 Korea Development Bank, (South
Korea), @ 7.13%, 09/17/01 4,013
4,725 Providian National Bank, @ 6.75%,
03/15/02 4,778
4,500 Sovereign Bancorp, Inc., @ 6.63%,
03/15/01 4,510
5,575 US Bank NA, 5.70%, 12/15/08 5,301
-------
20,654
-------
Business Services -- 0.8%
2,975 First Data Corp., 6.63%, 04/01/03 3,020
-------
Consumer Products -- 0.7%
2,505 Philip Morris Companies Inc., 7.00%,
07/15/05 2,570
-------
Diversified -- 2.1%
Tyco International Group, SA
(Luxemburg), #, @
5,000 5.88%, 11/01/04 4,947
3,000 6.88%, 01/15/29 2,923
-------
7,870
-------
Entertainment/Leisure -- 2.1%
3,500 Comcast Cable Communications,
6.20%, 11/15/08 3,420
4,275 USA Networks, Inc., #, 6.75%, 11/15/05 4,248
-------
7,668
-------
Financial Services -- 3.4%
1,500 Ford Motor Credit Co., 5.80%, 01/12/09 1,431
4,000 Household Netherlands BV
(Netherlands), 6.20%, 12/01/03 4,005
Lehman Brothers Holdings Inc., @
3,000 6.40%, 08/30/00 3,019
4,100 6.63%, 04/01/04 4,111
-------
12,566
-------
</TABLE>
See notes to financial statements.
19
<PAGE>
Chase Vista Select Intermediate Bond Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ----------------------------------------------------------------
Long-Term Investments -- (continued)
- ----------------------------------------------------------------
<S> <C> <C>
Industrial Components -- 1.9%
$ 1,775 Conoco Inc., @ 5.90%, 04/15/04 $ 1,760
5,000 Raytheon Corp., 5.95%, 03/15/01 5,015
--------
6,775
--------
Insurance -- 1.2%
4,370 Hartford Financial Services Group,
6.38%, 11/01/08 4,341
--------
Printing & Publishing -- 1.0%
3,850 Washington Post Co., Class B, 5.50%,
02/15/09 3,694
--------
Retailing -- 1.9%
3,500 Dayton Hudson Corp., @ 6.40%,
02/15/03 3,549
3,500 Saks, Inc., @ 7.38%, 02/15/19 3,445
--------
6,994
--------
Telecommunications -- 3.8%
AT&T Corp., @
475 5.63%, 03/15/04 468
4,700 6.00%, 03/15/09 4,594
5,000 Electrical Lightwave Inc., Class A, #, @
6.05%, 05/15/04 4,966
4,290 GTE Northwest Inc., 5.55%, 10/15/08 4,073
--------
14,101
--------
Utilities -- 3.4%
3,000 Carolina Power & Light Co., 5.95%,
03/01/09 2,927
5,000 National Rural Utilities Cooperative
Finance Corp., @ 5.50%, 01/15/05 4,885
5,000 United Illuminating Co., 6.00%,
12/15/03 4,901
--------
12,713
--------
Total Corporate Notes & Bonds $108,007
--------
(Cost $109,410)
</TABLE>
See notes to financial statements.
20
<PAGE>
Chase Vista Select Intermediate Bond Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -------------------------------------------------------------
<S> <C> <C>
Long-Term Investments -- (continued)
- -------------------------------------------------------------
Residential Mortgage Backed Securities -- 9.8%
----------------------------------------------
Mortgage-Backed Pass Through Securities -- 7.3%
Federal National Mortgage Association
$ 4,000 Pool 252435, 6.00%, 04/01/14 $ 3,962
5,000 Pool 323614, 6.50%, 02/01/14 5,040
7,992 Pool 484753, 6.50%, 03/01/29 7,940
4,903 Pool 323633, 7.00%, 03/01/29 4,967
5,000 TBA, 7.50%, 03/01/29 5,139
-------
27,048
-------
Collateralized Mortgage Obligations -- 2.5%
4,200 Federal National Mortgage Association,
Ser. 1999-17, Class PC, @ 6.00%,
12/25/22 4,157
5,000 Federal Home Loan Mortgage Corp.,
6.00%, 04/01/04 5,002
-------
9,159
-------
Total Residential Mortgage Backed 36,207
-------
Securities (Cost $36,220)
Commercial Mortgage Backed Securities -- 5.8%
---------------------------------------------
2,388 Credit Swiss First Boston Mortgage
Securities Corp. Ser. 1997, 6.65%,
06/20/03 2,384
2,700 GS Mortgage Securities Corp. II, Ser.
1997-GL, Class A2D, 6.94%,
07/13/30 2,777
3,962 Morgan Stanley Capital I, Ser. 1999-
WF1, Class A1, @ 5.91%, 04/15/08 3,920
5,395 Mortgage Capital Funding, Inc. 6.42%,
03/18/30 5,445
4,000 Nomura Depositor Trust, Ser. 1998-
ST1A, Class A3A, FRN #, @
5.48%, 02/15/34 3,841
</TABLE>
21
See notes to financial statements.
<PAGE>
Chase Vista Select Intermediate Bond Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ---------------------------------------------------------------
Long-Term Investments -- (continued)
- ---------------------------------------------------------------
<S> <C> <C>
$ 3,200 Structured Asset Securities Corp., Ser.
1998-2, Class M2, FRN, 5.69%,
02/25/28 $ 3,186
--------
Total Commercial Mortgage Backed 21,553
--------
Securities (Cost $21,734)
Asset Backed Securities -- 5.5%
------------------------------
4,750 American Express Credit Account
Master Trust, Ser. 1997-1, Class A,
6.40%, 04/15/05 4,839
1,700 Citibank Credit Card Master Trust I,
Ser. 1997-2, Class A, 6.55%, 02/15/04 1,735
4,419 Mid-State Trust, Ser. 6, Class A4,
7.79%, 07/01/35 4,329
5,000 Nomura CBO, Ltd., Ser. 1997-1, Class
A2, #, 6.67%, 05/15/09 5,283
4,000 Stand Credit Card Trust 93, Ser. A,
5.95%, 10/07/04 4,012
--------
Total Asset Backed Securities 20,198
(Cost $20,130)
===============================================================
Total Long-Term Investments 339,566
(Cost $343,215)
===============================================================
Short-Term Investments -- 8.7%
===============================================================
U.S. Treasury Security -- 0.1%
------------------------------
200 U.S. Treasury Bill, 4.46%, 08/19/99 197
--------
(Cost $197)
</TABLE>
See notes to financial statements.
22
<PAGE>
Chase Vista Select Intermediate Bond Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ----------------------------------------------------------
Short-Term Investments -- (continued)
- ----------------------------------------------------------
<S> <C> <C>
Repurchase Agreement -- 8.6%
----------------------------
$31,954 Greenwich Capital Markets, Inc.,
4.93%, due 5/3/99, (dated 4/30/99,
Proceeds $31,967, Secured by:
Federal Home Loan Mortgage Corp.
Gold, $29,400, 6.50% due
03/01/29 and FNMA $19,955,
6.26% through 7.00%, due
02/01/09 through 05/01/13; Market
Value $32,598) $ 31,954
(Cost $31,954)
==========================================================
Total Short-Term Investments 32,151
(Cost $32,151)
==========================================================
Total Investments -- 100.7% $371,717
(Cost $375,366)
==========================================================
</TABLE>
Index
# -- Security may only be sold to institutional buyers.
@ -- All or a portion of this security is segregated.
FRN -- The maturity shown is the final maturity date. The rate shown is the
rate in effect at April 30, 1999.
TBA -- To be announced.
FNMA -- Fannie Mae.
See notes to financial statements.
23
<PAGE>
Chase Vista Select Short-Term Bond Fund
as of April 30, 1999
(unaudited)
Fund Facts
<TABLE>
<S> <C>
Objective Current Income
Primary investments Investment-grade fixed-income securities with
maturities of three years or less.
Suggested investment time frame Short-term
Market benchmark Lehman 1-3 Year Government Bond Index
Lipper Funds category Short-Term Investment Grade Debt
Funds Average
Inception date 1/1/97
Newspaper symbol ST Bond
Net assets $24.1 million
Average maturity 2.0 years
Average duration 1.8 years
Average quality AAA
</TABLE>
Average Maturity/Quality
[9-block Graphic]
High Med. Low
---- ---- ---
Short X
Int.
Long
[End Graphic]
24
<PAGE>
Chase Vista Select Short-Term Bond Fund
as of April 30, 1999
(unaudited)
How the Fund Performed
Chase Vista Select Short-Term Bond Fund, which seeks current income by investing
in a portfolio of short-term investment grade fixed income securities, had a
total return of 1.75% for the six months ended April 30, 1999.
How the Fund Was Managed
Since bond prices and interest rates generally move in opposite directions, the
rising interest rate environment of the reporting period proved challenging for
all fixed income fund managers. However, by actively managing your portfolio's
duration, sector allocations and security selections, the management team was
able to reduce the effect of lower prices while maximizing the Fund's return.
After taking advantage of the end of the rally in Treasuries as the period
opened, the management team correctly anticipated the onset of the higher rate
environment by reducing duration to only a slightly-long stance and moving back
into the "spread" sectors, overweighting especially agency mortgage-backed
securities. By the end of 1998, the Fund held significant positions in liquid
agency mortgage-backed securities and U.S. agency debentures while remaining
only slightly overweight in corporate and asset-backed securities.
Starting in January 1999, the Fund began to move more aggressively into lower-
quality corporates due to the strong economy and the return of liquidity to the
markets. Within commercial mortgage-backed securities, the emphasis was on
liquid names while traditional issues backed by credit cards and auto loans
were favored among asset backed securities.
As 1999 progressed and interest rates continued to rise, the management team
continued to reduce the Fund's duration down to neutral. Since a lower duration/
spread sector bias is advantageous in a range-bound to slightly rising interest
rates scenario, the Fund ended the reporting period with an almost neutral
duration and a continued overweight in the spread sectors.
Where the Fund May Be Headed
After the period ended, the Federal Reserve Board adopted a tightening bias,
meaning that it will be inclined to raise interest rates should the economy
fail to moderate as expected, especially if what are now early signs of a
slight pick up in inflation prove sustainable. However, we continue to expect
the economy to slow later in 1999, partially due to the effects of the higher
long-term interest rates. Therefore, we're maintaining a neutral yet
opportunistic stance and will take advantage of market overreactions by
extending durations as we move further into the second quarter.
25
<PAGE>
Chase Vista Select Short-Term Bond Fund
as of April 30, 1999
(unaudited)
How Much of the Fund Was Invested
[PIE CHART]
Cash/Other (0.95%)
Investments (99.05%)
[END PIE CHART]
What the Fund Invested In
Percentage of Total Portfolio Investments
[PIE CHART]
Residential Mortgage Backed Securities (20.1%)
Corporate Notes & Bonds (10.4%)
U.S. Government Agency Obligations (14.6%)
U.S. Treasury Securities (23.4%)
Cash Equivalents & Short-Term Paper (9.4%)
Asset Backed Securities (13.7%)
Commercial Mortgage Backed Securities (8.4%)
[END PIE CHART]
Average Annual Total Returns[dagger]
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 Short-Term Bond 5.43% 5.26% 8.06%
</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.
[dagger] The quoted performance of Chase Vista Select Short-Term Bond 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.
26
<PAGE>
Chase Vista Select Short-Term Bond Fund
as of April 30, 1999
(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 Short-Term Bond 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 Chart]
Chase Vista Lehman Lipper Short-Term
Select Short-Term 1-3 Yr. Invest. Grade
Bond Fund Govt. Bond Index Debt Funds Average
----------------- ---------------- ------------------
1989 10000 10000 10000
1990 10815.4 10906.8 10828.8
1991 12021.8 12219 11992.8
1992 13205.6 13355.3 13051.2
1993 14477.7 14434.4 14034.5
1994 14774 14672.4 14328.8
1995 15337.1 15505 15009.3
1996 16291.8 16567.2 15978.5
1997 16983.1 17582.5 16900.5
1998 18108.2 18833.7 18001
1999 19092.2 20064.9 18901.4
[End Line Chart]
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 Short-Term Bond Fund, the Lehman 1-3 Year Government Bond
Index and the Lipper Short-Term Investment Grade Debt Funds Average for the 10
years ended 4/30/99. 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 Lehman Brothers 1-3 Year Government Bond Index is composed of all bonds
covered by the Government Bond Index with maturities of one to three years. The
index is unmanaged and reflects reinvestment of dividends. An individual cannot
invest in the index.
The Lipper Short-Term Investment Grade Debt Funds Average represents the
average performance of a universe of 97 actively managed short-term investment
grade debt 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 Short-Term Bond 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.
27
<PAGE>
Chase Vista Select Short-Term Bond Fund
Portfolio of Investments April 30, 1999 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ------------------------------------------------------------
Long-Term Investments -- 90.3%
- ------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Securities -- 23.3%
------------------------------------------------
U.S. Treasury Notes, @
$ 1,625 4.50%, 09/30/00 $1,613
2,000 4.63%, 12/31/00 1,986
2,000 5.63%, 04/30/00 2,013
------
Total U.S. Treasury Securities 5,612
------
(Cost $5,630)
U.S. Government Agency Obligations -- 14.5%
-------------------------------------------
Federal Home Loan Bank, @
1,500 5.50%, 07/14/00 1,504
1,000 5.50%, 08/13/01 1,003
1,000 Federal National Mortgage Association,
@ 5.88%, 04/23/04 995
------
Total U.S. Government Agency 3,502
------
Obligations (Cost $3,529)
Corporate Notes & Bonds -- 10.4%
--------------------------------
Automotive -- 2.1%
500 General Motors Acceptance Corp., @
5.50%, 01/14/02 496
------
Banking -- 4.7%
250 Korea Development Bank, (South
Korea), @ 7.13%, 09/17/01 251
500 Providian National Bank, 6.75%,
03/15/02 506
375 Sovereign Bancorp, Inc., @ 6.63%,
03/15/01 376
------
1,133
------
Business Services -- 1.5%
375 Comdisco Inc., @ 5.95%, 04/30/02 373
------
Financial Services -- 2.1%
500 Lehman Brothers Holdings Inc., @
6.38%, 03/15/01 502
------
Total Corporate Notes & Bonds 2,504
------
(Cost $2,503)
</TABLE>
See notes to financial statements.
28
<PAGE>
Chase Vista Select Short-Term Bond Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -------------------------------------------------------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
Residential Mortgage Backed Securities -- 20.1%
-----------------------------------------------
Mortgage-Backed Pass Through Securities -- 18.0%
Federal National Mortgage Association,
$ 2,125 Pool 323614, 6.50%, 02/01/14 $2,142
2,125 TBA, 7.50%, 03/01/29 2,184
------
4,326
------
Collateralized Mortgage Obligations -- 2.1%
500 Federal Home Loan Mortgage Corp.,
Ser. 2117, Class PA, 6.00%, 03/15/06 502
------
Total Residential Mortgage Backed 4,828
------
Securities (Cost $4,823)
Commercial Mortgage Backed Securities -- 8.4%
---------------------------------------------
493 Bear Stearns Commercial Mortgage
Securities, Ser. 1999-C1, Class A1,
@ 5.91%, 05/14/08 489
245 Credit Swiss First Boston Mortgage
Securities Corp. Ser. 1997, @
6.65%, 06/20/03 244
495 Morgan Stanley Capital I, Ser. 1999-
WF1, Class A1, @ 5.91%, 04/15/08 490
800 Structured Asset Securities Corp., Ser.
1998-2, Class M2, FRN, 5.57%,
02/25/28 797
------
Total Commercial Mortgage Backed 2,020
------
Securities (Cost $2,044)
Asset Backed Securities -- 13.6%
--------------------------------
500 American Express Credit Account
Master Trust, Ser. 1997-1, Class A,
6.40%, 04/15/05 509
750 Carco Auto Loan Master Trust, Ser.
1991-1, Class A2, @ 5.78%, 03/15/04 753
750 Citibank Credit Card Master Trust I,
Ser. 1997-2, Class A, @ 6.55%,
02/15/04 766
</TABLE>
29
See notes to financial statements.
<PAGE>
Chase Vista Select Short-Term Bond Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -----------------------------------------------------------
<S> <C> <C>
Long-Term Investments -- (continued)
- -----------------------------------------------------------
$ 750 Discover Card Master Trust I, Ser.
1998-2, Class A, 5.80%, 09/16/03 $ 752
500 Lehman Home Equity Loan Trust, Ser.
1998-2, Class M2, @ 5.42%, 06/25/28 494
-------
Total Asset Backed Securities 3,274
(Cost $3,304)
===============================================
Total Long-Term Investments 21,740
(Cost $21,833)
===============================================
Short-Term Investments -- 9.3%
- -----------------------------------------------------------
Repurchase Agreement -- 9.3%
----------------------------
2,241 Greenwich Capital Markets, Inc.,
4.93%, due 5/3/99, (dated 4/30/99,
Proceeds $2,242, Secured by: FNMA
$5,800, FRN, due 07/18/27; Market
Value $2,287) 2,241
(Cost $2,241)
===============================================
Total Short-Term Investments 2,241
(Cost $2,241)
===============================================
Total Investments -- 99.6% $23,981
(Cost $24,074)
===============================================
</TABLE>
Index
@ -- All or a portion of this security is segregated.
FRN -- The maturity shown is the final maturity date. The rate shown is the
rate in effect at April 30, 1999.
TBA -- To be announced.
FNMA -- Fannie Mae.
30
See notes to financial statements.
<PAGE>
Chase Vista Select Funds
Statement of Assets and Liabilities April 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
(Amounts in Thousands)
<TABLE>
<CAPTION>
Select Select
Select Intermediate Short-Term
Bond Bond Bond
Fund Fund Fund
----------- -------------- -----------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value (Note 1) $594,381 $371,717 $23,981
Cash ..................................... 1 1 57
Receivables:
Investment securities sold .............. 22,819 -- --
Interest ................................ 5,680 4,174 158
Fund shares sold ........................ 263 79 --
Expense reimbursement from
Distributor ............................ -- -- 10
Other .................................... 34 20 4
-------- -------- -------
Total Assets .......................... 623,178 375,991 24,210
-------- -------- -------
LIABILITIES:
Payables:
Investment securities purchased .......... 10,075 5,038 --
Trust shares redeemed .................... 331 4 --
Dividends payable ........................ 3,313 1,762 112
Variation margin on futures contracts 296 -- --
Other accrued liabilities ................ 145 144 31
-------- -------- -------
Total Liabilities ..................... 14,160 6,948 143
-------- -------- -------
NET ASSETS:
Paid in capital .......................... 613,182 373,280 24,242
Accumulated undistributed net
investment income ....................... (37) (30) (28)
Accumulated undistributed net
realized gain (loss) on investments
and futures transactions ................ 109 (558) (54)
Net unrealized (depreciation) of
investments and futures transactions (4,236) (3,649) (93)
-------- -------- -------
Total Net Assets ........................... $609,018 $369,043 $24,067
======== ======== =======
Shares of beneficial interest outstanding
($.001 par value; unlimited number
of shares authorized): .................... 15,305 36,990 2,277
Net Asset Value (Maximum offering
price and redemption per share) ......... $ 39.79 $ 9.98 $ 10.57
======== ======== =======
Cost of Investments ...................... $598,263 $375,366 $24,074
======== ======== =======
</TABLE>
31
See notes to financial statements.
<PAGE>
Chase Vista Select Funds
Statement of Operations For the six months ended April 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
(Amounts in Thousands)
<TABLE>
<CAPTION>
Select Select
Select Intermediate Short-Term
Bond Bond Bond
Fund Fund Fund
------------ -------------- -----------
<S> <C> <C> <C>
INTEREST INCOME ............................ $ 17,137 $ 9,719 $ 634
-------- ------- -----
EXPENSES: (Note 2)
Investment advisory fees ................. 894 537 31
Administration fees ...................... 447 269 18
Custodian fees ........................... 60 50 23
Amortization of organization costs
(Note 1) ................................ 5 3 --
Printing and postage ..................... 10 15 1
Professional fees ........................ 29 18 9
Registration costs ....................... 4 2 1
Transfer agent fees ...................... 11 9 6
Trustees fees and expenses ............... 15 9 1
Other .................................... 11 2 2
-------- ------- -----
Total expenses ......................... 1,486 914 92
-------- ------- -----
Less amounts waived (Note 2) ............... 1,388 846 72
Less expenses borne by the Distributor ..... 4 -- 10
-------- ------- -----
Net expenses ............................ 94 68 10
-------- ------- -----
Net investment income .................. 17,043 9,651 624
-------- ------- -----
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments .............................. 1,157 (106) (34)
Futures .................................. (1,067) (155) (9)
Change in net unrealized appreciation/
depreciation in:
Investments .............................. (14,109) (7,744) (142)
Futures transactions ..................... (318) (342) (4)
-------- ------- ------
Net realized and unrealized gain (loss)
on investments and futures
transactions ............................ (14,337) (8,347) (189)
-------- ------- -----
Net increase in net assets from
operations .............................. $ 2,706 $ 1,304 $ 435
======== ======= =====
</TABLE>
See notes to financial statements.
<PAGE>
Chase Vista Select Funds
Statement of Changes in Net Assets (unaudited) For the periods indicated
- --------------------------------------------------------------------------------
(Amounts in Thousands)
<TABLE>
<CAPTION>
Select Bond Fund
-------------------------
11/01/98 Year
Through Ended
04/30/99 10/31/98
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income ..................................................... $ 17,043 $ 34,577
Net realized gain (loss) on investments and futures transactions .......... 90 7,797
Change in net unrealized appreciation/depreciation on investments
and futures transactions ................................................. (14,427) 2,772
-------- --------
Increase in net assets from operations .................................... 2,706 45,146
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1H)
Net investment income ..................................................... (17,043) (34,401)
Net realized gain on investment transactions and futures transactions ..... (7,910) (6,298)
-------- --------
Total dividends and distributions ........................................ (24,953) (40,699)
-------- --------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares issued ............................................... 47,756 96,373
Dividends reinvested ...................................................... 7,739 5,178
Cost of shares redeemed ................................................... (13,892) (36,124)
-------- --------
Increase (decrease) from capital share transactions ....................... 41,603 65,427
-------- --------
Total increase (decrease) in net assets .................................. 19,356 69,874
NET ASSETS:
Beginning of period ....................................................... 589,662 519,788
-------- --------
End of period ............................................................. $609,018 $589,662
======== ========
Share Transactions:
Issued .................................................................... 1,179 2,364
Reinvested ................................................................ 190 128
Redeemed .................................................................. (344) (887)
-------- --------
Change in shares .......................................................... 1,025 1,605
======== ========
<CAPTION>
Select Intermediate Select Short-Term
Bond Fund Bond Fund
------------------------- ----------------------
11/01/98 Year 11/01/98 Year
Through Ended Through Ended
04/30/99 10/31/98 04/30/99 10/31/98
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income ..................................................... $ 9,651 $ 20,669 $ 624 $ 1,571
Net realized gain (loss) on investments and futures transactions .......... (261) 4,876 (43) 58
Change in net unrealized appreciation/depreciation on investments
and futures transactions ................................................. (8,086) 527 (146) (29)
-------- -------- ------- -------
Increase in net assets from operations .................................... 1,304 26,072 435 1,600
-------- -------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1H)
Net investment income ..................................................... (9,659) (20,279) (623) (1,495)
Net realized gain on investment transactions and futures transactions ..... (5,181) -- (99) --
-------- -------- ------- -------
Total dividends and distributions ........................................ (14,840) (20,279) (722) (1,495)
-------- -------- ------- -------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares issued ............................................... 31,909 61,733 1,651 2,680
Dividends reinvested ...................................................... 4,964 23 97 1
Cost of shares redeemed ................................................... (7,637) (33,372) (2,693) (4,163)
-------- -------- ------- -------
Increase (decrease) from capital share transactions ....................... 29,236 28,384 (945) (1,482)
-------- -------- ------- -------
Total increase (decrease) in net assets .................................. 15,700 34,177 (1,232) (1,377)
NET ASSETS:
Beginning of period ....................................................... 353,343 319,166 25,299 26,676
-------- -------- ------- -------
End of period ............................................................. $369,043 $353,343 $24,067 $25,299
======== ======== ======= =======
Share Transactions:
Issued .................................................................... 3,150 6,050 156 251
Reinvested ................................................................ 489 2 9 1
Redeemed .................................................................. (756) (3,266) (254) (391)
-------- -------- ------- -------
Change in shares .......................................................... 2,883 2,786 (89) (139)
======== ======== ======= =======
</TABLE>
See notes to financial statements.
33
<PAGE>
Chase Vista Select Funds
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies -- Mutual Fund Select Group
(the "Trust") was organized as a Massachusetts Business Trust, and is
registered under the Investment Company Act of 1940, as amended, (the "1940
Act") as an open-end management investment company. Effective March 16, 1998,
the Vista Family of Mutual Funds changed its name to the Chase Vista Funds.
Select Bond Fund ("CVBF"), Select Intermediate Bond Fund ("CVIBF") and Select
Short-Term Bond Fund ("CVSTBF"), collectively, the "Funds", are separate series
of the Trust.
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 -- 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 Fund's policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government Agency
securities. All collateral is held by the Fund's custodian bank,
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 Fund
may be delayed or limited.
C. Security transactions and investment income -- Investment transactions are
accounted for on the trade date (the date the order to buy or sell is
executed). Securities gains and losses are calculated on the identified cost
basis. Interest income is determined on the basis of coupon interest accrued
adjusted for amortization of premiums and accretion of discounts.
D. Futures contracts -- When a Fund enters into a futures contract, it
makes an initial margin deposit in a segregated account, either in cash or
liquid securities. Thereafter, the futures contract is marked to market and
the Fund makes (or receives) additional cash payments daily to the broker.
Changes in the value of the contract are recorded as unrealized
appreciation/depreciation until the contract is closed or settled.
The funds invest in exchange-traded interest rate futures and options for
hedging purposes, to either modify the duration of the portfolio, modify
the yield curve exposure of the portfolio, or in anticipation of buying or
selling a specific security.
Use of long futures contracts subjects the Funds to risk of loss in excess
of the amounts shown on the Statement of Assets and Liabilities, up to the
amount of the nominal value of the futures contracts.
The Funds may enter into futures contracts only on exchanges or boards of
trade. The exchange or board of trade acts as the counterparty to each
futures transaction, therefore, the Fund's credit risk is limited to
failure of the exchange or board of trade.
At April 30, 1999, the Funds held open futures contracts as listed in the
Portfolio of Investments.
34
<PAGE>
Chase Vista Select Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
E. Expenses -- Expenses directly attributable to a Fund are charged to that
Fund; other expenses of the Trust are allocated proportionately among each
of the Funds within the Trust in relation to the net assets of each Fund or
on another reasonable basis.
F. 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.
G. 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.
H. 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. Dividends and
distributions which exceed net investment income or net realized capital
gains for financial reporting purposes but not for tax purposes are
reported as distributions in excess of net investment income or net
realized capital gains.
I. Dollar rolls -- The Funds enter into dollar rolls in which the Funds sell
mortgage-backed securities for delivery in the current month and
simultaneously contract to repurchase substantially similar (same type,
coupon and maturity) securities on a specified future date. During the roll
period, the Funds forgo principal and interest paid on the securities. The
Funds are compensated by the interest earned on the cash proceeds of the
initial sale and a fee earned for entering into the roll transaction. The fee
is amortized into income over the duration of the roll transaction.
2. Fees and Other Transactions with Affiliates
A. Investment advisory fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank ("Chase" or the "Adviser") acts as the
Investment Adviser to the Funds. Chase is a direct wholly-owned subsidiary
of The Chase Manhattan Corporation. As Investment Adviser, Chase supervises
the investments of the Funds and for such services is paid a fee. The fee
is computed daily and paid monthly at an annual rate equal to 0.30%, 0.30%
and 0.25% of the average daily net assets for CVBF, CVIBF and CVSTBF,
respectively. The Adviser voluntarily waived all of its fees.
Chase Asset Management, Inc. ("CAM"), a registered investment adviser, is
the subinvestment adviser to each Fund pursuant to a Sub-Investment
Advisory Agreement between CAM and Chase. CAM is a wholly owned subsidiary
of Chase and is entitled to receive a fee, payable by Chase from its
advisory fee, at an annual rate equal to 0.15% for CVBF and CVIBF, and
0.10% for CVSTBF of average daily net assets.
B. Sub-administration fees -- Pursuant to a Sub-Administration Agreement,
Vista Fund Distributors, Inc. (the "Distributor"), a wholly owned
subsidiary of The BISYS Group, Inc., acts as the Trust's exclusive
underwriter and promotes and arranges for the sale of each Fund's shares.
In addition, the Distributor provides certain sub-administration services
to the Trust, including providing officers, clerical staff and office space
for an annual fee of 0.05% of the average daily net assets of each Fund.
The Distributor voluntarily waived sub-administration fees as of April 30,
1999, as follows (in thousands): CVBF $139; CVIBF $83, and CVSTBF $6.
C. Administration fee -- Pursuant to an Administration Agreement, Chase
(the "Administrator") provides certain administration services to the
Trust. For these services and facilities, the Administrator receives from
each Fund a fee computed at the annual rate equal to 0.10% of the
respective Fund's average daily net assets. The Administrator voluntarily
waived all of the administration fees.
35
<PAGE>
Chase Vista Select Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
D. Assumption of expenses -- The Distributor voluntarily assumed expenses
of the Funds as shown on the Statement of Operations.
E. Other -- Certain officers of the Trust are officers of Vista Fund
Distributors, Inc. or of its parent corporation, BISYS.
Chase provides portfolio accounting and custody services for the Funds.
Compensation for such services is presented in the Statement of Operations
as custodian fees. Chase waived all custodian fees for the six months ended
April 30, 1999.
3. Investment Transactions -- Purchases and sales of investments (excluding
short-term investments) were as follows (in thousands):
<TABLE>
<CAPTION>
CVBF CVIBF CVSTBF
-------- -------- -------
<S> <C> <C> <C>
Purchases (excluding U.S.
Government) ........................ $301,043 $156,704 $ 8,553
Sales (excluding U.S.
Government) ........................ 262,165 128,463 8,908
Purchases of U.S. Government ......... 686,354 125,961 30,849
Sales of U.S. Government ............. 804,030 105,562 31,220
</TABLE>
4. Federal Income Tax Matters -- For Federal income tax purposes, the cost and
unrealized appreciation (depreciation) in value of the investment securities at
April 30, 1999 are as follows (in thousands):
<TABLE>
<CAPTION>
CVBF CVIBF CVSTBF
-------- -------- -------
<S> <C> <C> <C>
Aggregate cost ......................... $598,263 $375,366 $24,074
-------- -------- -------
Gross unrealized appreciation .......... $ 898 $ 825 $ 14
Gross unrealized depreciation .......... (4,780) (4,474) (107)
-------- -------- -------
Net unrealized depreciation ............ $ (3,882) $ (3,649) $ (93)
======== ======== =======
</TABLE>
5. 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 six months ended April 30, 1999, 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 (in thousands):
<TABLE>
<CAPTION>
Accrued
Pension Pension
Expenses Liability
-------- ---------
<S> <C> <C>
CVBF ......................................... $ 5 $29
CVIBF ........................................ 3 16
CVSTBF ....................................... -- 1
</TABLE>
6. 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 0.075% 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 April 30, 1999, nor at anytime during
the year.
36
<PAGE>
Chase Vista Select Funds
Financial Highlights For the periods indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Chase Vista Select
-------------------------------------------
Bond Fund Intermediate Bond Fund
-------------------------------- --------------------------------
11/1/98 Year 1/1/97* 11/1/98 Year 1/1/97*
Through Ended Through Through Ended Through
04/30/99 10/31/98 10/31/97 04/30/99 10/31/98 10/31/97
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ............................. $41.29 $41.01 $40.34 $10.36 $10.19 $10.09
------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income ........................................... 1.15 2.56 2.31 0.27 0.62 0.55
Net gains or losses on securities (both realized and unrealized) (0.96) 0.76 0.67 (0.23) 0.17 0.10
------- ------ ------ ------ ------ ------
Total from Investment Operations ................................ 0.19 3.32 2.98 0.04 0.79 0.65
------- ------ ------ ------ ------ ------
Distributions to Shareholders From:
Dividends from net investment income ............................ 1.15 2.55 2.31 0.27 0.62 0.55
Net realized gains on investment transactions ................... 0.54 0.49 -- 0.15 -- --
------- ------ ------ ------ ------ ------
Total dividends and distributions ............................... 1.69 3.04 2.31 0.42 0.62 0.55
------- ------ ------ ------ ------ ------
Net Asset Value, End of Period ................................... $39.79 $41.29 $41.01 $ 9.98 $10.36 $10.19
======= ====== ====== ====== ====== ======
Total Return ..................................................... 0.44% 8.44% 7.64% 0.38% 7.98% 6.71%
Ratios/Supplemental Data:
Net assets, end of period (in millions) ......................... $ 609 $ 590 $ 520 $ 369 $ 353 $ 319
Ratios to average net assets:#
Expenses ........................................................ 0.03% 0.03% 0.02% 0.04% 0.04% 0.06%
Net investment income ........................................... 5.65% 6.27% 6.89% 5.33% 6.16% 6.67%
Expenses without waivers and assumption of expenses ............. 0.48% 0.51% 0.49% 0.50% 0.52% 0.54%
Net investment income without waivers and assumption
of expenses .................................................... 5.20% 5.79% 6.42% 4.87% 5.68% 6.19%
Portfolio turnover rate .......................................... 215% 306% 261% 79% 168% 193%
<CAPTION>
Chase Vista Select
---------------------------------
Short-Term Bond Fund
---------------------------------
11/1/98 Year 1/1/97*
Through Ended Through
04/30/99 10/31/98 10/31/97
---------- ---------- -----------
<S> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ............................. $10.69 $10.65 $10.62
------ ------ ------
Income from Investment Operations:
Net investment income ........................................... 0.27 0.61 0.57
Net gains or losses on securities (both realized and unrealized) (0.08) 0.04 0.03
------ ------ ------
Total from Investment Operations ................................ 0.19 0.65 0.60
------ ------ ------
Distributions to Shareholders From:
Dividends from net investment income ............................ 0.27 0.61 0.57
Net realized gains on investment transactions ................... 0.04 -- --
------ ------ ------
Total dividends and distributions ............................... 0.31 0.61 0.57
------ ------ ------
Net Asset Value, End of Period ................................... $10.57 $10.69 $10.65
====== ====== ======
Total Return ..................................................... 1.75% 6.25% 5.82%
Ratios/Supplemental Data:
Net assets, end of period (in millions) ......................... $ 24 $ 25 $ 27
Ratios to average net assets:#
Expenses ........................................................ 0.08% 0.11% 0.11%
Net investment income ........................................... 4.98% 6.01% 6.45%
Expenses without waivers and assumption of expenses ............. 0.74% 0.88% 0.63%
Net investment income without waivers and assumption
of expenses .................................................... 4.32% 5.24% 5.93%
Portfolio turnover rate .......................................... 193% 382% 406%
</TABLE>
- -------
* Commencement of operations.
# Short periods have been annualized.
See notes to financial statements.
37
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
CHASE VISTA SELECT FIXED INCOME FUNDS SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
Investment Adviser, Administrator,
Shareholder and Fund Servicing
Agent and Custodian
The Chase Manhattan Bank
Distributor
Vista Fund Distributors, Inc.
Transfer Agent
DST Systems, Inc.
Legal Counsel
Simpson Thacher & Bartlett
Independent Accountants
PricewaterhouseCoopers LLP
Chase Vista Funds are distributed by Vista Fund Distributors, Inc., which is
unaffiliated with The Chase Manhattan Bank. Chase and its respective affiliates
receive compensation from Chase Vista Funds for providing investment advisory
and other services.
This report is submitted for the general information of the shareholders of the
funds. It is not authorized for distribution to prospective investors in the
funds unless preceded or accompanied by a prospectus.
The financial information in this report has been taken from the books and
records of the funds without examination by independent accountants, who express
no opinion thereto.
To obtain a prospectus for any of the Chase Vista Funds, call 1-800-34-VISTA.
The prospectus contains more complete information, including charges and
expenses. Please read it carefully before you invest or send money.
(C) The Chase Manhattan Corporation, 1999, 2000. All Rights Reserved. June 1999
[Chase Vista Logo]
Chase Vista Funds Fulfillment Center
393 Manley Street
West Bridgewater, MA 02379-1039
