MUTUAL FUND SELECT GROUP, N-14AE, EX-99.(17)(C), 2000-10-25

MUTUAL FUND SELECT GROUP
N-14AE, EX-99.(17)(C), 2000-10-25

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<PAGE>

PROSPECTUS APRIL 28, 2000

Chase Funds

INVESTOR SHARES

CHASE MONEY
MARKET FUND

CHASE SHORT-
INTERMEDIATE TERM
U.S. GOVERNMENT
SECURITIES FUND

CHASE U.S.
GOVERNMENT
SECURITIES FUND

CHASE INTERMEDIATE
TERM BOND FUND

CHASE INCOME FUND

CHASE BALANCED
FUND

CHASE EQUITY INCOME
FUND

CHASE EQUITY
GROWTH FUND

CHASE SMALL
CAPITALIZATION FUND

The Securities and Exchange Commission has not approved or disapproved these
securites or determined if this prospectus is truthful or complete. Any
represetation to the contrary is a criminal offense.

[Graphic; CHASE
THE RIGHT RELATIONSHIP IS EVERYTHING.{RegTM}]

PSCF1-1-400

<PAGE>

<TABLE>
<S> <C>
CHASE MONEY MARKET FUND 1

CHASE SHORT-INTERMEDIATE TERM
U.S. GOVERNMENT SECURITIES FUND 6

CHASE U.S. GOVERNMENT SECURITIES FUND 12

CHASE INTERMEDIATE TERM BOND FUND 18

CHASE INCOME FUND 25

CHASE BALANCED FUND 31

CHASE EQUITY INCOME FUND 39

CHASE CORE EQUITY FUND 45

CHASE EQUITY GROWTH FUND 51

CHASE SMALL CAPITALIZATION FUND 57

FUND MANAGEMENT 63

THE FUNDS' INVESTMENT ADVISER 63

HOW YOUR ACCOUNT WORKS 66

BUYING FUND SHARES 66

SELLING FUND SHARES 68

EXCHANGING FUND SHARES 68

OTHER INFORMATION CONCERNING THE FUNDS 69

DISTRIBUTIONS AND TAXES 70

SHAREHOLDER SERVICES 71

FINANCIAL HIGHLIGHTS 73

WHAT THE TERMS MEAN 77
</TABLE>

<PAGE>

CHASE MONEY MARKET FUND

[Begin sidebar]

The Fund's objective

The Fund aims to provide the highest possible level of current income while
still maintaining liquidity and preserving capital.

[End sidebar]

The Fund's main investment strategy

The Fund invests in high quality, short-term money market instruments which are
issued and payable in U.S. dollars.

The Fund principally invests in:

o high quality commercial paper and other short-term debt securities,
including floating and variable rate demand notes of U.S. and foreign
corporations

o debt securities issued or guaranteed by qualified banks. These are:

o U.S. banks with more than $1billion in total assets and foreign
branches of these banks

o foreign banks with the equivalent of more than $10 billion in total
assets and which have branches or agencies in the U.S.

o other U.S. or foreign commercial banks which the Fund's advisers judge
to have comparable credit standing

o securities issued or guaranteed by the U.S. Government, its agencies or
authorities

o asset-backed securities

o repurchase agreements.

The dollar weighted average maturity of the Fund will be 90 days or less and the
Fund will buy only those instruments which have remaining maturities of 397 days
or less.

The Fund may invest any portion of its assets in debt securities issued or
guaranteed by U.S. banks and their foreign branches. These include certificates
of deposit, time deposits and bankers' acceptances.

1
<PAGE>

CHASE MONEY MARKET FUND

[Begin sidebar]

FREQUENCY OF TRADING

How frequently the Fund buys and sells securities will vary from year to year,
depending on market conditions. High trading activity generally means higher
transaction costs.

[End sidebar]

The Fund seeks to maintain a net asset value of $1.00 per share.

The Fund invests only in securities issued and payable in U.S. dollars. Each
investment must have the highest short-term rating from at least two national
rating organizations, or one such rating if only one organization rates that
security. Alternatively, the security may have a guarantee that has such a
rating. If the security is not rated, it must be considered of comparable
quality by the Fund's advisers.

The Fund seeks to develop an appropriate portfolio by considering the
differences in yields among securities of different maturities, market sectors
and issuers.

The Fund may change any of its investment policies (including its investment
objective) without shareholder approval.[logo]

2
<PAGE>

The main investment risks

The Fund attempts to keep its net asset value constant, but there's no guarantee
it will be able to do so.

The value of money market investments tends to fall when prevailing interest
rates rise, although they're generally less sensitive to interest rate changes
than longer-term securities.

Repurchase agreements involve some risk to the Fund if the other party does not
live up to its obligations under the agreement.

The Fund's ability to concentrate its investments in the banking industry could
increase risks. The profitability of banks depends largely on the availability
and cost of funds, which can change depending upon economic conditions. Banks
are also exposed to losses if borrowers get into financial trouble and can't
repay their loans.

Investments in foreign banks and other foreign issuers may be riskier than
investments in the United States. That could be, in part, because of difficulty
converting investments into cash, political and economic instability, the
imposition of government controls, or regulations that don't match U.S.
standards.

Although the Fund seeks to be fully invested, it may at times hold some of its
assets in cash. This would hurt the Fund's performance.[logo]

[Begin sidebar]

Securities in the Fund's portfolio may not earn as high a current income as
longer term or lower quality securities

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. Although the Cash Management Money Market Fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the Fund.

[End sidebar]

3
<PAGE>

CHASE MONEY MARKET FUND

The Fund's past performance

The Fund began offering Investor Class shares on November 10, 1998. Performance
figures for Investor Class shares before that date are based on Premier Class
shares of the Fund. Since Investor Class shares have higher expenses, their
performance figures would have been lower.

The calculations assume that all dividends and distributions are reinvested in
the Fund. Some of the companies that provide services to the Fund have agreed
not to collect some expenses and to reimburse others. Without these agreements,
the performance figures would be lower than shown.[logo]

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[Bar chart data]

<TABLE>
<S> <C>
-----------------------------------
BEST QUARTER 1.91%
-----------------------------------
1st quarter, 1990

-----------------------------------
WORST QUARTER 0.62%
-----------------------------------
2nd quarter, 1993
3rd quarter, 1993
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS

For the periods ending December 31, 1999

<TABLE>
<CAPTION>
PAST PAST PAST
1 YEAR 5 YEARS 10 YEARS
------------------------------------------------------
<S> <C> <C> <C>
INVESTOR CLASS SHARES 4.78% 5.15% 4.94%
------------------------------------------------------
</TABLE>

4
<PAGE>

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

None+

+ There is a $10 fee for each wire transaction.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B1) FEES EXPENSES EXPENSES
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES 0.30% 0.10% 1.86%# 2.26%#
--------------------------------------------------------------------------------
</TABLE>

*The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.24%, the distribution
fees are expected to be 0.00%, other expenses for Investor Class shares are
expected to be 0.36% and the total annual fund operating expenses for Investor
Class shares are expected not to exceed 0.60%. That's because The Chase
Manhattan Bank (Chase) and some of the Fund's other service providers have
volunteered not to collect a portion of their fees and to reimburse others.
Chase and these other service providers may end this arrangement at any time.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as shown
above.

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
---------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES $229 $706 $1,210 $2,595
---------------------------------------------------------
</TABLE>

5
<PAGE>

CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND

[Begin sidebar]

The Fund's objective

The Fund aims to provide as high a level of current income as is consistent with
preservation of capital.

[End sidebar]

The Fund's main investment strategy

Under normal market conditions, the Fund will invest at least 70% of its total
assets in debt securities issued or guaranteed by the U.S. Government and its
agencies or authorities, and in repurchase agreements involving these
securities.

The Fund may invest in mortgage-related securities issued or guaranteed by
certain agencies of the U.S. Government. These may include investments in
collateralized mortgage obligations and principal-only and interest-only
stripped mortgage-backed securities.

To reduce volatility, under normal market conditions, the Fund maintains a
dollar-weighted average maturity for the overall portfolio of between two and
five years. This is because the prices of shorter-term securities tend to be
less volatile than the prices of longer-term securities. There is no restriction
on the maturity of any individual security in the portfolio. The Fund's adviser
adjusts the average maturity of the Fund based on its outlook for the economy.

6
<PAGE>

[Begin sidebar]

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs,
thus lowering performance, and increase your taxable dividends.

[End sidebar]

of changing economic conditions and trends. The Fund's adviser may sell one
security and buy another security of comparable quality and maturity to take
advantage of what it believes to be short-term differences in market values or
yields.

The Fund may invest in floating rate securities, whose interest rate adjusts
automatically whenever a specified interest rate changes, and in variable rate
securities, whose interest rates are changed periodically.

The Fund may enter into "dollar rolls" in which the Fund sells mortgage-backed
securities and at the same time contracts to buy back very similar securities on
a future date. It may also buy asset-backed securities. These receive a stream
of income from a particular asset, such as credit card receivables.

The Fund may also invest in high-quality, short-term money market instruments,
repurchase agreements and derivatives, which are investments that have a value
based on another investment, exchange rate or index. The Fund may use
derivatives to hedge various market risks or to increase the Fund's income or
gain.

To temporarily defend its assets during unusual market conditions, the Fund may
invest any portion of its assets in high quality money market instruments and
repurchase agreements.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

7
<PAGE>

CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND

The main investment risks

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some specific risks of investing in
Short-Intermediate Term U.S. Government Securities Fund.

The value of fixed income investments such as bonds tends to fall when
prevailing interest rates rise. Such a drop in value could be worse if the Fund
invests a larger portion of its assets in debt securities with longer
maturities. That's because long-term debt securities are more sensitive to
interest rate changes than other fixed-income securities.

When the Fund invests in mortgage-related securities, the value of the Fund
could change more often and to a greater degree than if it did not buy
mortgage-backed securities. That's because the prepayment features on some
mortgage-related securities make them more sensitive to interest rate changes.
Mortgage-related securities are subject to scheduled and unscheduled principal
payments as property owners pay down or prepay their mortgages. As these
payments are received, they must be reinvested when interest rates may be lower
than on the original mortgage security. When interest rates are rising, the
value of fixed-income securities with prepayment features are likely to decrease
as much or more than securities without prepayment features. In addition, the
value of mortgage-related securities with prepayment features may not increase
as much as other fixed-income securities when interest rates fall.

Collateral mortgage obligations are issued in multiple classes, and each class
may have its own interest rate and/or final payment date. A class with an
earlier final payment date may have certain preferences in receiving principal
payments or earning interest. As a

[Begin sidebar]

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.

[End sidebar]

8
<PAGE>

result, the value of some classes in which the Fund invests may be more
volatile.

The value of interest-only and principal-only mortgage-backed securities is more
volatile than other types of mortgage-related securities. That's because they
are very sensitive not only to changes in interest rates, but also to the rate
of prepayments. A rapid or unexpected increase in prepayments can significantly
depress the price of interest-only securities, while a rapid or unexpected
decrease could have the same effect on principal-only securities. In addition,
these instruments may be illiquid.

While the principal and payments on certain of the Fund's portfolio securities
may be guaranteed, this does not mean that the market value of the security, or
the value of Fund shares, is guaranteed.

The Fund's performance will depend on the credit quality of its investments.
While U.S. Government securities are generally of high quality, a government
security that is not backed by the full faith and credit of the U.S. Treasury
may be affected by the creditworthiness of the agency or authority that issued
it.

Certain securities which the Fund may hold, such as stripped obligations and
zero coupon securities, are more sensitive to changes in interest rates than
ordinary interest-paying securities.

Some asset-backed securities may have additional risk because they may receive
little or no collateral protection from the underlying assets.

If the interest rate on floating and variable rate securities falls, the Fund's
yield may decline and it may lose the opportunity for capital appreciation.

Dollar rolls, forward commitments and repurchase agreements involve some risk to
the Fund if the other party does not live up to its part of the agreement.

Derivatives may be more risky than other types of investment because they may
respond more to changes in economic conditions than other types of investments.
If they are used for non-hedging purposes, they could cause losses that exceed
the Fund's original investment.

If the Fund temporarily departs from its investment policies to defend its
assets, it may not achieve its investment objectives.[logo]

9
<PAGE>

The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund has varied from year to year. This provides some
indication of the risks of investing in the Fund. The table shows the average
annual return over the past year, five years and since inception. It compares
that performance to the Lehman 1-3 Year Government Index and the Lehman
Intermediate Government Index, widely recognized market benchmarks, and the
Lipper Short-Intermediate Term U.S. Government Funds Index.

The Lehman 1-3 Year Government Index consists of U.S. Treasury and agency
securities with maturities of one to three years. The Lehman Intermediate
Government Index consists of U.S. Treasury and agency securities with maturities
of one to 10 years.

The Lipper Short-Intermediate Term U.S. Government Funds Index represents the
performance of the 30 largest short-intermediate term debt funds.

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[Bar chart data]

<TABLE>
<S> <C>
-----------------------------------
BEST QUARTER 4.21%
-----------------------------------
3rd quarter, 1998

-----------------------------------
WORST QUARTER -1.35%
-----------------------------------
1st quarter, 1994
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS

For the periods ending December 31, 1999

<TABLE>
<CAPTION>
SINCE
PAST PAST INCEPTION
1 YEAR 5 YEARS (4/1/93)
----------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTOR CLASS SHARES 0.48% 5.67% 4.37%
----------------------------------------------------------------------------
LEHMAN 1-3 YEAR GOV'T INDEX 2.97% 6.47% 5.31%
----------------------------------------------------------------------------
LEHMAN INT GOV'T INDEX 0.49% 6.93% 5.62%
----------------------------------------------------------------------------
LIPPER SHORT-INT TERM US GOV'T FUNDS INDEX 0.82% 6.04% 4.73%
----------------------------------------------------------------------------
</TABLE>

10
<PAGE>

CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

None+

+ There is a $10 fee for each wire transaction.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B1) FEES EXPENSES EXPENSES
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES 0.50% 0.25% 2.40%# 3.15%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.10%, the distribution
fees are expected to be 0.00%, the other expenses for Investor Class shares are
expected to be 0.90% and the total annual fund operating expenses for Investor
Class shares are expected not to exceed 1.00%. That's because The Chase
Manhattan Bank (Chase) and some of the Fund's other service providers have
volunteered not to collect a portion of their fees and to reimburse others.
Chase and these other service providers may end this arrangement at any time.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

O the Fund's operating expenses are not waived and remain the same as shown
above.

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
---------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES $318 $971 $1,649 $3,457
---------------------------------------------------------
</TABLE>

<PAGE>

CHASE U.S. GOVERNMENT SECURITIES FUND

[Begin sidebar]

The Fund's objective

The Fund aims to provide current income while emphasizing preservation of
capital.

[End sidebar]

The Fund's main investment strategy

Under normal market conditions, the average portfolio maturity of the Fund is
between five and 15 years. There is no restriction on the maturity of any
individual security in the portfolio. The Fund's adviser will adjust the
maturity based on its outlook for the economy.

When making investment decisions for the Fund, the Fund's adviser considers many
factors in addition to current yield, including preservation of capital,
maturity and yield to maturity. The Fund's adviser will adjust the Fund's
investments in certain securities or types of securities based on its analysis
of changing economic conditions and trends. The Fund's adviser may sell one
security and buy another security of comparable quality and maturity to take
advantage of what it believes to be short-term differences in market values or
yields.

12
<PAGE>

CHASE U.S. GOVERNMENT SECURITIES FUND

[Begin sidebar]

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs,
thus lowering performance, and increase your taxable dividends.

[End sidebar]

To temporarily defend its assets during unusual market conditions, the Fund may
invest any portion of its assets in high quality money market instruments and
repurchase agreements.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

13
<PAGE>

CHASE U.S. GOVERNMENT SECURITIES FUND

The main investment risks

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some specific risks of investing in U.S.
Government Securities Fund.

[Begin sidebar]

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.

[End sidebar]

14
<PAGE>

value of some classes in which the Fund invests may be more volatile.

While the principal and payments on certain of the Fund's portfolio securities
may be guaranteed, this does not mean that the market value of the security, or
the value of Fund shares, is guaranteed.

Certain securities which the Fund may hold, such as stripped obligations and
zero coupon securities, are more sensitive to changes in interest rates than
ordinary interest-paying securities.

Some asset-backed securities may have additional risk because they may receive
little or no collateral protection from the underlying assets.

If the interest rate on floating and variable rate securities falls, the Fund's
yield may decline and it may lose the opportunity for capital appreciation.

Dollar rolls, forward commitments and repurchase agreements involve some risk to
the Fund if the other party does not live up to its part of the agreement.

If the Fund temporarily departs from its investment policies to defend its
assets, it may not achieve its investment objectives.[logo]

15
<PAGE>

CHASE U.S. GOVERNMENT SECURITIES FUND

The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund has varied from year to year. This provides some
indication of the risks of investing in the Fund. The table shows the average
annual return over the past year, five years and since inception. It compares
that performance to the Lehman Government Index, a widely recognized market
benchmark, and the Lipper General U.S. Government Funds Index.

The Lehman Government Index consists of the Lehman Treasury Bond Index and the
Lehman Agency Bond Index. It includes Treasury bonds and fixed income securities
issued by the U.S. Government and its agencies.

The Lipper General U.S. Government Funds Index represents the performance of the
30 largest U.S. government securities funds.

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[Bar chart data]

<TABLE>
<S> <C>
------------------------------------
BEST QUARTER 10.36%
------------------------------------
2nd quarter, 1995

------------------------------------
WORST QUARTER -6.79%
------------------------------------
1st quarter, 1996
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS

For the periods ending December 31, 1999

<TABLE>
<CAPTION>
SINCE
PAST PAST INCEPTION
1 YEAR 5 YEARS (4/1/93)
----------------------------------------------------------------------
<S> <C> <C> <C>
INVESTOR CLASS SHARES -2.79% 8.22% 6.03%
----------------------------------------------------------------------
LEHMAN GOVERNMENT INDEX -2.23% 7.44% 5.81%
----------------------------------------------------------------------
LIPPER GENERAL US GOV'T FUNDS INDEX -2.66% 6.47% 4.70%
----------------------------------------------------------------------
</TABLE>

16
<PAGE>

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

None+

+ There is a $10 fee for each wire transaction.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B1) FEES EXPENSES EXPENSES
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES 0.50% 0.25% 3.15%# 3.90%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.00%, the distribution
fees are expected to be 0.00%, the other expenses for Investor Class shares are
expected to be 1.00% and the total annual fund operating expenses for Investor
Class shares are expected not to exceed 1.00%. That's because The Chase
Manhattan Bank (Chase) and some of the Fund's other service providers have
volunteered not to collect a portion of their fees and to reimburse others.
Chase and these other service providers may end this arrangement at any time.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as shown
above.

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
-----------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES $392 $1,189 $2,004 $4,121
-----------------------------------------------------------
</TABLE>
17

<PAGE>

CHASE INTERMEDIATE TERM BOND FUND

[Begin sidebar]

The Fund's objective

The Fund aims to invest in securities that earn current income while also
considering stability of principal.

[End sidebar]

The Fund's main investment strategy

The Fund seeks current income by investing primarily in fixed income securities.
Under normal market conditions, the Fund will invest at least 70% of its total
assets in bonds and notes of domestic and foreign issuers, U.S. Government
securities and mortgage-related securities.

To help reduce the risk of loss of principal, all of the Fund's investments in
debt securities will be investment grade, which means a rating of Baa or higher
by Moody's Investors Service, Inc., BBB or higher by Standard & Poor's
Corporation, or the equivalent by another national rating organization or
unrated securities of comparable quality.

The average portfolio maturity of the Fund is between three and 10 years. When
the Fund purchases fixed income securities, they usually will have a maturity of
greater than one year. The Fund's adviser will adjust the maturity based on its
outlook for the economy.

18
<PAGE>

[Begin sidebar]

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs,
thus lowering performance, and increase your taxable dividends.

[End sidebar]

one security and buy another security of comparable quality and maturity to take
advantage of what it believes to be short-term differences in market values or
yields.

The Fund may invest in mortgage-related securities issued by governmental
entities and private issuers.

These may include investments in col-lateralized mortgage obligations and
principal-only and interest-only stripped mortgage-backed securities.

The Fund may invest up to 30% of its total assets in foreign debt securities,
including Depositary Receipts. These investments may include debt securities
issued or guaranteed by foreign governments and international organizations such
as The World Bank.

To temporarily defend its assets during unusual market conditions, the Fund may
invest any portion of its assets in high quality money market instruments and
repurchase agreements.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

19
<PAGE>

CHASE INTERMEDIATE TERM BOND FUND

The main investment risks

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some specific risks of investing in the
Intermediate Term Bond Fund.

[Begin sidebar]

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.

[End sidebar]

20
<PAGE>

result, the value of some classes in which the Fund invests are more volatile.

Certain securities which the Fund may hold, such as stripped obligations and
zero coupon securities, are more sensitive to changes in interest rates than
ordinary interest-paying securities.

Investments in foreign securities may be riskier than investments in the U.S.
They may be affected by political, social and economic instability. Some
securities may be harder to trade without incurring a loss and may be difficult
to convert into cash. There may be less public information available, differing
settlement procedures, or regulations and standards that don't match U.S.
standards. Some countries may nationalize or expropriate assets or impose
exchange controls. If the Fund were to invest in a security which is not
denominated in U.S. dollars, it also would be subject to currency exchange risk.
These risks increase when investing in issuers located in developing countries.

The Fund's performance will depend on the credit quality of its investments.
Securities which are rated Baa by Moody's or BBB by S&P may have fewer
protective provisions and are generally more risky than higher rated securities.
The issuer may have trouble making principal and interest payments when
difficult economic conditions exist.

Some asset-backed securities may have additional risk because they may receive
little or no collateral protection from the underlying assets.

If the interest rate on floating and variable rate securities falls, the Fund's
yield may decline and it may lose the opportunity for capital appreciation.

Dollar rolls, forward commitments and repurchase agreements involve some risk to
the Fund if the other party does not live up to its part of the agreement.

If the Fund departs from its investment policies during temporary defensive
periods, it may not achieve its investment objective.[logo]

21
<PAGE>

The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund has varied from year to year. This provides some
indication of the risk of investing in the Fund. The table shows the average
annual return over the past year, five years and since inception. It compares
that performance to the Lehman Brothers Intermediate Government/Corporate Index
and the Lehman Aggregate Index, widely recognized market benchmarks, and the
Lipper Intermediate Grade Debt Funds Index.

The Lehman Intermediate Government/Corporate Index consists of U.S. Treasury and
agency securities, corporate and Yankee bonds with maturities of 1-10 years. The
Lehman Aggregate Index consists of the Lehman Government/Corporate Index, U.S.
Treasury and agency securities, corporate bonds and mortgage-backed securities
with maturities of 1-30 years.

The Lipper Intermediate Grade Debt Funds Index represents the performance of the
30 largest intermediate investment grade debt funds.

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[Bar chart data]

<TABLE>
<S> <C>
-----------------------------------
BEST QUARTER 5.99%
-----------------------------------
2nd quarter, 1995

-----------------------------------
WORST QUARTER -2.15%
-----------------------------------
1st quarter, 1996
</TABLE>

22
<PAGE>

CHASE INTERMEDIATE TERM BOND FUND

AVERAGE ANNUAL TOTAL RETURNS

For the periods ending December 31, 1999

<TABLE>
<CAPTION>
SINCE
PAST PAST 5 INCEPTION
1 YEAR YEARS (10/3/94)
------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTOR CLASS SHARES -1.36% 6.26% 5.94%
------------------------------------------------------------------------
LEHMAN INTERMEDIATE GOV'T/CORP INDEX -0.39% 7.10% 6.73%
------------------------------------------------------------------------
LEHMAN AGGREGATE INDEX -0.82% 7.73% 7.43%
------------------------------------------------------------------------
LIPPER INT GRADE DEBT FUNDS INDEX -0.98% 7.08% 6.75%
------------------------------------------------------------------------
</TABLE>

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

None+

+There is a $10 fee for each wire transaction.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B1) FEES EXPENSES EXPENSES
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES 0.50% 0.25% 2.25%# 3.00%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.25%, the distribution
fees are expected to be 0.00%, the other expenses for Investor Class shares are
expected to be 0.75% and the total annual fund operating expenses for Investor
Class shares are expected not to exceed 1.00%. That's because The Chase
Manhattan Bank (Chase) and some of the Fund's other service providers have
volunteered not to collect a portion of their fees and to reimburse others.
Chase and these other service providers may end this arrangement at any time.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

23
<PAGE>

o the Fund's operating expenses are not waived and remain the same as shown
above.

Although your actual cost may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
---------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES $303 $927 $1,577 $3,318
---------------------------------------------------------
</TABLE>

24
<PAGE>

CHASE INCOME FUND

[Begin sidebar]

The Fund's objective

The Fund aims to invest in securities that earn a high level of current income,
while also considering safety of principal.

[End sidebar]

The Fund's main investment strategy

The Fund seeks a high level of current income by investing in fixed income
securities. Under normal market conditions, the Fund will invest at least 70%
of its total assets in bonds and notes of domestic and foreign issuers, U.S.
Government securities and mortgage-related securities.

The average portfolio maturity of the Fund is between five and 15 years. When
the Fund purchases fixed income securities, they usually will have a maturity of
greater than one year. The Fund's adviser will adjust the maturity based on its
outlook for the economy.

25
<PAGE>

[Begin sidebar]

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs,
thus lowering performance, and increase your taxable dividends.

[End sidebar]

one security and buy another security of comparable quality and maturity to take
advantage of what it believes to be short-term differences in market values or
yields.

The Fund may invest in mortgage-related securities issued by governmental
entities and private issuers. These may include investments in collateralized
mortgage obligations and principal-only and interest-only stripped
mortgage-backed securities.

The Fund may invest up to 30% of its total assets in foreign securities,
including Depositary Receipts. These investments may include debt securities
issued or guaranteed by foreign governments and international organizations such
as The World Bank.

To temporarily defend its assets during unusual market conditions, the Fund may
invest any portion of its assets in high quality money market instruments and
repurchase agreements.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

26
<PAGE>

The main investment risks

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some specific risks of investing in the Income
Fund.

[Begin sidebar]

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.

[End sidebar]

27
<PAGE>

CHASE INCOME FUND

Certain securities which the Fund may hold, such as stripped obligations and
zero coupon securities, are more sensitive to changes in interest rates than
ordinary interest-paying securities.

Some asset-backed securities may have additional risk because they may receive
little or no collateral protection from the underlying assets.

If the interest rate on floating and variable rate securities falls, the Fund's
yield may decline and it may lose the opportunity for capital appreciation.

Dollar rolls, forward commitments and repurchase agreements involve some risk to
the Fund if the other party does not live up to its part of the agreement.

If the Fund departs from its investment policies during temporary defensive
periods, it may not achieve its investment objective.[logo]

28
<PAGE>

CHASE INCOME FUND

The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund has varied from year to year. This provides some
indication of the risks of investing in the Fund. The table shows the average
annual return over the past year, five years and ten years. It compares that
performance to the Lehman Government/Corporate Index, a widely recognized market
benchmark, and the Lipper Corporate Debt A Rated Funds Index.

The Lehman Government/Corporate Index is an unmanaged index that consists of
U.S. Treasury and agency securities, and corporate and Yankee bonds with
maturities of 1-30 years.

The Lipper Corporate Debt A Rated Funds Index represents the performance of the
largest 30 A rated corporate debt funds.

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[Bar chart data]

<TABLE>
<S> <C>
-----------------------------------
BEST QUARTER 5.69%
-----------------------------------
3rd quarter, 1991

-----------------------------------
WORST QUARTER -3.38%
-----------------------------------
1st quarter, 1994
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS

For the periods ending December 31, 1999

<TABLE>
<CAPTION>
PAST PAST PAST
1 YEAR 5 YEARS 10 YEARS
-----------------------------------------------------------------------
<S> <C> <C> <C>
INVESTOR CLASS SHARES -2.92% 6.84% 6.45%
-----------------------------------------------------------------------
LEHMAN GOV'T/CORP INDEX -2.15% 7.61% 7.65%
-----------------------------------------------------------------------
LIPPER CORP. DEBT A RATED FUNDS INDEX -2.04% 7.25% 7.36%
-----------------------------------------------------------------------
</TABLE>

29
<PAGE>

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

None+

+There is a $10 fee for each wire transaction.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B1) FEES EXPENSES EXPENSES
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES 0.50% 0.25% 2.20%# 2.95%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.30%, the distribution
fees are expected to be 0.00%, the other expenses for Investor Class shares are
expected to be 0.70% and the total annual fund operating expenses for Investor
Class shares are expected not to exceed 1.00%. That's because The Chase
Manhattan Bank (Chase) and some of the Fund's other service providers have
volunteered not to collect a portion of their fees and to reimburse others.
Chase and these other service providers may end this arrangement at any time.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as shown
above.

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
---------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES $298 $913 $1,552 $3,271
---------------------------------------------------------
</TABLE>

30
<PAGE>

CHASE BALANCED FUND

[Begin sidebar]

The Fund's objective

The Fund aims to provide a balance of current income and growth of capital.

[End sidebar]

The Fund's main investment strategy

The Fund seeks a balance of current income and growth by using the following
strategies:

o an active equity management style that focuses on strong earnings
momentum and profitability within the universe of growth-oriented
stocks, and

o an active fixed income management style that focuses primarily on
domestic fixed income securities.

The Fund's adviser may adjust the portion of the Fund's assets that are invested
in equity and fixed income securities depending on its analysis of general
market and economic conditions and trends, yields, interest rates and changes in
monetary policies.

The Fund seeks growth of capital by normally investing 30% to 70% of its total
assets in equity securities. The Fund invests primarily in companies with one or
more of the following characteristics:

o a projected rate of earnings growth that's equal to or greater than
the equity markets

o a return on assets and equity that's equal to or greater than the
equity markets

o above-average price/earnings ratios

o below-average dividend yield

31
<PAGE>

o above-average market volatility

o a market capitalization of more than $500 million.

Market capitalization is the total market value of a company's shares. Equity
securities include common stocks and preferred stocks and securities that are
convertible into common stocks.

The Fund will focus on companies with strong earnings growth and high
profitability levels. The Fund will also examine industry and company specific
characteristics. The Fund's equity portion will emphasize growth sectors of the
economy.

The Fund seeks current income by normally investing at least 25% of its total
assets in U.S. government securities and other fixed income securities,
including mortgage-backed securities. The Fund invests in fixed income
securities only if they are rated as investment grade or the adviser considers
them to be comparable to investment grade.

There is no restriction on the maturity of the Fund's debt portfolio or on any
individual security in the portfolio. The Fund's advisers will adjust the
maturity based on its outlook for the economy.

The Fund may invest up to 30% of its total assets in foreign securities,
including Depositary Receipts. Its equity investments may also include
convertible securities, which generally pay interest or dividends and which can
be converted into common or preferred stock.

The Fund's equity holdings may also include real estate investment trusts
(REITs), which are pools of investments primarily in income-producing real
estate or loans related to real estate.

The Fund may invest in mortgage-related securities issued by governmental
entities and

32
<PAGE>

CHASE BALANCED FUND

[Begin sidebar]

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs,
thus lowering performance, and increase your taxable dividends.

[End sidebar]

private issuers. These may include investments in collateralized mortgage
obligations and principal-only and interest-only stripped mortgage-backed
securities.

The Fund may enter into "dollar rolls," in which the Fund sells mortgage-backed
securities and at the same time contracts to buy back very similar securities on
a future date. It may also buy asset-backed securities. These receive a stream
of income from a particular asset, such as credit card receivables.

The Fund may invest any portion of its assets that aren't in stocks or fixed
income securities in high quality money market instruments and repurchase
agreements. To temporarily defend its assets, the Fund may put any amount of its
assets in these types of investments.

The Fund may invest in derivatives, which are financial instruments whose value
is based on another security, index or exchange rate. The Fund may use
derivatives to hedge various market risks or to increase the Fund's income or
gain.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

33
<PAGE>

CHASE BALANCED FUND

The main investment risks

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some of the specific risks of investing in
Balanced Fund.

The value of shares of the Fund will be influenced by conditions in stock
markets as well as the performance of the companies selected for the Fund's
portfolio.

The securities of mid-capitalization companies may trade less frequently and in
smaller volumes than securities of larger, more established companies. As a
result, share price changes may be more sudden or more erratic. Mid-sized
companies may have limited product lines, markets or financial resources, and
they may depend on a small management group.

Investments in foreign securities may be riskier than investments in the U.S.
Because foreign securities are usually denominated in foreign currencies, the
value of the Fund's portfolio may be influenced by currency exchange rates and
exchange control regulations. Foreign securities may be affected by political,
social and economic instability. Some securities may be harder to trade without
incurring a loss and may be difficult to convert into cash. There may be less
public information available, differing settlement procedures, or regulations
and standards that don't match U.S. standards. Some countries may nationalize or
expropriate assets or impose exchange controls. These risks increase when
investing in issuers located in developing countries.

Unsponsored depositary receipts may not provide as much information about the
underlying issuer and may not carry the same voting privileges as sponsored
depositary receipts.

In early 1999, the European Monetary Union implemented a new currency called the

[Begin sidebar]

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.

[End sidebar]

34
<PAGE>

"euro." It is possible that the euro could increase volatility in financial
markets, which could have a negative effect on the strength and value of the
U.S. dollar and, as a result, the value of shares of the Fund.

The value of the Fund's fixed income securities tends to fall when prevailing
interest rates rise. Such a drop could be worse if the Fund invests a larger
portion of its assets in debt securities with longer maturities. That's because
long-term debt securities are more sensitive to interest rate changes than other
fixed income securities.

When the Fund invests in mortgage-related securities, the value of the Fund
could change more often and to a greater degree than if it did not buy
mortgage-related securities. That's because the prepayment features on some
mortgage-related securities make them more sensitive to interest rate changes.
Mortgage related securities are subject to scheduled and unscheduled principal
payments as property owners pay down or prepay their mortgages. As these
payments are received, they must be reinvested when interest rates may be higher
or lower than on the original mortgage security. When interest rates are rising,
the value of fixed-income securities with prepayment features are likely to
decrease as much or more than securities without prepayment features. In
addition, while the value of fixed-income securities will generally increase
when interest rates decline, the value of mortgage-related securities with
prepayment features may not increase as much as securities without prepayment
features.

The value of interest-only and principal-only mortgage-backed securities are
more volatile than other types of mortgage-related securities. That's because
they are very sensitive not only to changes in interest rates, but also to the
rate of prepayments. A rapid or unexpected increase in prepayments can
significantly depress the price of interest-only securities, while a rapid or
unexpected decrease could have the same effect on principal-only securities. In
addition, these instruments may be illiquid.

Certain securities which the Fund may hold, such as stripped obligations and
zero coupon securities, are more sensitive to changes in interest rates than
ordinary interest-paying securities.

The Fund's performance will also depend on the credit quality of its
investments. Securities which are rated Baa by Moody's or BBB by S&P may have
fewer protective provisions and are generally more risky than higher rated
securities. The issuer may have trouble making principal and interest payments
when difficult economic conditions exist.

Some asset-backed securities may have additional risk because they may receive
little or no collateral protection from the underlying assets.

35
<PAGE>

CHASE BALANCED FUND

Because the interest rate changes on floating and variable rate securities, the
Fund's yield may decline and it may lose the opportunity for capital
appreciation when interest rates decline.

Dollar rolls, forward commitments and repurchase agreements involve some risk to
the Fund if the other party does not live up to its obligations under the
agreement.

The market value of convertible securities tends to decline as interest rates
increase. Their value also tends to change whenever the market value of the
underlying common or preferred stock fluctuates.

The value of REITs will depend on the value of the underlying properties or the
underlying loans or interest. The value of REITs may decline when interest rates
rise.

If the Fund invests a substantial portion of its assets in money market
instruments, repurchase agreements and U.S. Government obligations, including
where the Fund is investing for temporary defensive purposes, it could reduce
the Fund's potential return.

Derivatives may be more risky than other types of investments because they may
respond more to changes in economic conditions than other types of investments.
If they are used for non-hedging purposes, they could cause losses that exceed
the Fund's original investment.[logo]

36
<PAGE>

The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund has varied from year to year. This provides some
indication of the risks of investing in the Fund. The table shows the average
annual return over the past year, five years and ten years. It compares that
performance to the S&P 500 Index and Lehman Government/Corporate Index, widely
recognized market benchmarks, and the Lipper Balanced Funds Index.

The Fund began offering Investor Class shares on October 16, 1998. Performance
figures for Investor Class shares before that date are based on Premier Class
shares of the Fund. Since Investor Class shares have higher expenses, their
performance figures would have been lower.

The S&P 500 Index is an unmanaged, broad-based index of 500 companies and is
generally considered to represent the U.S. market. The Lehman Government/
Corporate Index is an unmanaged index that consists of the Lehman government and
corporate bond indices, including U.S. Treasury and agency securities, and
corporate and Yankee bonds.

The Lipper Balanced Funds Index represents the performance of the 30 largest
balanced funds.

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[Bar chart data]

<TABLE>
<S> <C>
------------------------------------
BEST QUARTER 13.24%
------------------------------------
4th quarter, 1998

------------------------------------
WORST QUARTER -5.37%
------------------------------------
3rd quarter, 1990
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS

For the periods ending December 31, 1999

<TABLE>
<CAPTION>
PAST PAST PAST
1 YEAR 5 YEARS 10 YEARS
---------------------------------------------------------------
<S> <C> <C> <C>
INVESTOR CLASS SHARES 13.94% 19.42% 12.80%
---------------------------------------------------------------
S&P 500 INDEX 21.03% 28.54% 18.19%
---------------------------------------------------------------
LEHMAN GOV'T/CORP INDEX -2.15% 7.61% 7.65%
---------------------------------------------------------------
LIPPER BALANCED FUNDS INDEX 8.98% 16.33% 12.26%
---------------------------------------------------------------
</TABLE>

37
<PAGE>

CHASE BALANCED FUND

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

None+

+There is a $10 fee for each wire transaction.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B1) FEES EXPENSES EXPENSES
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES 0.75% 0.25% 2.10%# 3.10%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.65%, the distribution
fees are expected to be 0.00%, the other expenses for Investor Class shares are
expected to be 0.60% and the total annual fund operating expenses for Investor
Class shares are expected not to exceed 1.25%. That's because The Chase
Manhattan Bank (Chase) and some of the Fund's other service providers have
volunteered not to collect a portion of their fees and to reimburse others.
Chase and these other service providers may end this arrangement at any time.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as shown
above.

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
---------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES $313 $957 $1,625 $3,411
---------------------------------------------------------
</TABLE>

38
<PAGE>

CHASE EQUITY INCOME FUND

[Begin sidebar]

The Fund's objective

The Fund aims to invest in securities that provide both capital appreciation
and current income.

[End sidebar]

The Fund's main investment strategy

The Fund uses an active equity management style which focuses on both earnings
momentum and value within the universe of income-oriented stocks. The Fund
normally invests at least 70% of its total assets in equity securities.

The Fund seeks capital appreciation by targeting companies with attractive
earnings momentum. It seeks current income by emphasizing companies with
above-average dividend yield and a consistent dividend record. The Fund also
emphasizes securities of companies with below-average market volatility and
price/earnings ratios or a market capitalization of more than $500 million. The
Fund combines growth and value styles of investing.

The Fund may also invest in investment grade debt securities. When the adviser
wishes to limit the Fund's equity investments because of adverse market
conditions, the Fund may temporarily invest any amount in investment grade debt
securities. There is no restriction on the Fund's debt portfolio or on any
individual security in the portfolio.

39
<PAGE>

CHASE EQUITY INCOME FUND

[Begin sidebar]

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs,
thus lowering performance, and increase your taxable dividends.

[End sidebar]

The Fund's equity holdings may also include real estate investment trusts
(REITs), which are pools of investments primarily in income-producing real
estate or loans related to real estate.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

40
<PAGE>

The main investment risks

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some of the specific risks of investing in
Equity Income Fund.

The value of shares of the Fund will be influenced by conditions in stock
markets as well as the performance of the companies selected for the Fund's
portfolio.

Investments in foreign securities may be riskier than investments in the U.S.
Because foreign securities are usually denominated in foreign currencies, the
value of the Fund's portfolio may be influenced by currency exchange rates and
exchange control regulations. Foreign securities may be affected by political,
social and economic instability. Some securities may be harder to trade without
incurring a loss and may be difficult to convert into cash. There may be less
public information available, differing settlement procedures, or regulations
and standards that don't match U.S. standards. Some countries may nationalize
or expropriate assets or impose exchange controls. These risks increase when
investing in issuers located in developing countries.

Unsponsored depositary receipts may not provide as much information about the
underlying issuer and may not carry the same voting privileges as sponsored
depositary receipts.

In early 1999, the European Monetary Union implemented a new currency called the

[Begin sidebar]

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.

[End sidebar]

41
<PAGE>

CHASE EQUITY INCOME FUND

The market value of convertible securities and debt securities tends to decline
as interest rates increase. Such a drop could be worse if the Fund invests a
larger portion of its assets in debt securities with longer maturities. The
value of convertible securities also tends to change whenever the market value
of the underlying common or preferred stock fluctuates.

The value of REITs will depend on the value of the underlying properties or the
underlying loans or interest. The value of REITs may decline when interest rates
rise.

42
<PAGE>

The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund has varied from year to year. This provides some
indication of the risks of investing in the Fund. The table shows the average
annual return over the past year, five years and ten years. It compares that
performance to the S&P 500 Index, a widely recognized market benchmark, and the
Lipper Large Cap Value Funds Index.

The Fund began offering Investor Class shares on August 24, 1998. Performance
figures for Investor Class shares before that date are based on Premier Class
shares of the Fund. Since Investor Class shares have higher expenses, their
performance figures would have been lower.

The S&P 500 Index is an unmanaged, broad-based index of 500 companies that is
generally considered to represent the U.S. market.

The Lipper Large Cap Value Funds Index consists of funds that invest in
large-cap value stocks. These funds usually have a below-average price-to-book
ratio and three-year earnings growth figure compared to the diversified U.S.
large cap funds universe.

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[Bar chart data]

<TABLE>
<S> <C>
------------------------------------
BEST QUARTER 18.81%
------------------------------------
4th quarter, 1998

------------------------------------
WORST QUARTER -10.93%
------------------------------------
3rd quarter, 1990
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS

For the periods ending December 31, 1999

<TABLE>
<CAPTION>
PAST PAST PAST
1 YEAR 5 YEARS 10 YEARS
----------------------------------------------------------------------
<S> <C> <C> <C>
INVESTOR CLASS SHARES 12.70% 24.03% 14.66%
----------------------------------------------------------------------
S&P 500 INDEX 21.03% 28.54% 18.19%
----------------------------------------------------------------------
LIPPER LARGE CAP VALUE FUNDS INDEX 10.78% 22.11% 15.42%
----------------------------------------------------------------------
</TABLE>

43
<PAGE>

CHASE EQUITY INCOME FUND

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

None+

+There is a $10 fee for each wire transaction.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B1) FEES EXPENSES EXPENSES
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES 0.75% 0.25% 1.55%# 2.55%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.70%, the distribution
fees are expected to be 0.00%, the other expenses for Investor Class shares are
expected to be 0.55% and the total annual fund operating expenses for Investor
Class shares are expected not to exceed 1.25%. That's because The Chase
Manhattan Bank (Chase) and some of the Fund's other service providers have
volunteered not to collect a portion of their fees and to reimburse others.
Chase and these other service providers may end this arrangement at any time.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as shown
above.

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
---------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES $258 $793 $1,355 $2,885
---------------------------------------------------------
</TABLE>

<PAGE>

CHASE CORE EQUITY FUND

[Begin sidebar]

The Fund's objective

The Fund aims to maximize total investment return with an emphasis on long-term
capital appreciation and current income while taking reasonable risk.

[End sidebar]

The Fund's main investment strategy

The Fund seeks to achieve its objective by investing all of its assets in Core
Equity Portfolio, an open-end investment company which has identical investment
objectives and policies as the Fund. As a result, the strategies and risk
outlined below apply to Core Equity Portfolio as well as to the Fund.

The Fund uses an active equity management style which focuses on strong earnings
momentum and profitability within the universe of S&P 500 stocks. The Fund
normally invests at least 70% of its total assets in equity securities.

The Fund seeks capital appreciation by emphasizing companies with a superior
record of earnings growth relative to the equity markets in general or a
projected rate of earnings growth that's greater than or equal to the equity
markets.

The Fund seeks to earn current income and manage risk by focusing on larger
companies with a stable record of earnings growth. In addition, it diversifies
its portfolio across all sectors of the S&P 500. The Fund also emphasizes
companies with return on assets and return on equity equal to or greater than
the equity markets.

The Fund may invest up to 30% of its total assets in foreign securities,
including Depositary Receipts. Its equity investments may include convertible

45
<PAGE>

[Begin sidebar]

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs,
thus lowering performance, and increase your taxable dividends.

[End sidebar]

securities, which generally pay interest or dividends and which can be converted
into common or preferred stock.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

46
<PAGE>

The main investment risks

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some of the specific risks of investing in Core
Equity Fund.

The value of shares of the Fund will be influenced by conditions in stock
markets as well as the performance of the companies selected for the Fund's
portfolio.

Unsponsored depositary receipts may not provide as much information about the
underlying issuer and may not carry the same voting privileges as sponsored
depositary receipts.

In early 1999, the European Monetary Union implemented a new currency called the
"euro." It is possible that the euro could increase volatility in financial
markets, which could have a negative effect on the strength and value of the
U.S. dollar and, as a result, the value of shares of the Fund.

The market value of convertible securities and debt securities tends to decline
as interest rates increase. Such a drop could be worse if

[Begin sidebar]

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.

[End sidebar]

47
<PAGE>

CHASE CORE EQUITY FUND

the Fund invests a larger portion of its assets in debt securities with longer
maturities. The value of convertible securities also tends to change whenever
the market value of the underlying common or preferred stock fluctuates.

48
<PAGE>

The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund has varied from year to year. This provides some
indication of the risks of investing in the Fund. The table shows the average
annual return over the past year, five years and since inception. It compares
that performance to the S&P 500 Index, a widely recognized market benchmark, and
the Lipper Large Cap Core Funds Index.

The Fund began offering Investor Class shares on September 10, 1998. Performance
figures for Investor Class shares before that date are based on Premier Class
shares of the Fund. Since Investor Class shares have higher expenses, their
performance figures would have been lower.

The S&P 500 Index is an unmanaged, broad-based index of 500 companies and is
generally considered to represent the U.S. market.

The Lipper Large Cap Core Funds Index consists of funds that invest in both
growth and value stocks.

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[Bar chart data]

<TABLE>
<S> <C>
------------------------------------
BEST QUARTER 22.85%
------------------------------------
4th quarter, 1998

------------------------------------
WORST QUARTER -9.57%
------------------------------------
3rd quarter, 1998
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS

For the periods ending December 31, 1999

<TABLE>
<CAPTION>
SINCE
PAST PAST INCEPTION
1 YEAR 5 YEARS (4/1/93)
----------------------------------------------------------------------
<S> <C> <C> <C>
INVESTOR CLASS SHARES 23.59% 27.09% 20.05%
----------------------------------------------------------------------
S&P 500 INDEX 21.03% 28.54% 19.01%
----------------------------------------------------------------------
LIPPER LARGE CAP CORE FUNDS INDEX 19.35% 25.32% 19.18%
----------------------------------------------------------------------
</TABLE>

49
<PAGE>

CHASE CORE EQUITY FUND

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

None+

+There is a $10 fee for each wire transaction.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B1) FEES EXPENSES EXPENSES
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES 0.75% 0.25% 0.55%# 1.55%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as shown
above.

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
-------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES $158 $490 $845 $1,845
-------------------------------------------------------
</TABLE>

50
<PAGE>

CHASE EQUITY GROWTH FUND

[Begin sidebar]

The Fund's objective

The Fund aims to provide capital appreciation. Producing current income is a
secondary objective.

[End sidebar]

Investment strategy

The Fund seeks to achieve its objective by investing all of its assets in Equity
Growth Portfolio, an open-end investment company which has identical investment
objectives and policies as the Fund. As a result, the strategies and risk
outlined below apply to Equity Growth Portfolio as well as to the Fund.

The Fund uses an active equity man- agement style which focuses on strong
earnings momentum and profitability within the universe of growth-oriented
stocks. The Fund normally invests at least 70% of its total assets in equity
securities.

The Fund seeks capital appreciation by emphasizing the growth sectors of the
economy. It looks for companies with one or more of the following
characteristics:

o a projected earnings growth rate that's greater than or equal to the
equity markets in general

o a return on assets and return on equity equal to or greater than the
equity markets

o above market average price-earnings ratios

o below-average dividend yield

o above-average market volatility

o a market capitalization of more than $500 million.

The Fund focuses on companies with strong earnings and high levels of

51
<PAGE>

[Begin sidebar]

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs
(and thus lower performance) and increase your taxable dividends.

[End sidebar]

profitability as well as positive industry or company characteristics.

The Fund may invest up to 30% of its total assets in foreign securities,
including Depositary Receipts. Its equity investments may include convertible
securities, which generally pay interest or dividends and which can be converted
into common or preferred stock.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

52
<PAGE>

CHASE EQUITY GROWTH FUND

The main investment risks

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some of the specific risks of investing in
Equity Growth Fund.

The value of shares of the Fund will be influenced by conditions in stock
markets as well as the performance of the companies selected for the Fund's
portfolio.

Unsponsored depositary receipts may not provide as much information about the
underlying issuer and may not carry the same voting privileges as sponsored
depositary receipts.

In early 1999, the European Monetary Union implemented a new currency called the

[Begin sidebar]

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.

[End sidebar]

53
<PAGE>

CHASE EQUITY GROWTH FUND

54
<PAGE>

The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund has varied from year to year. This provides some
indication of the risks of investing in the Fund. The table shows the average
annual return over the past year, five years and ten years. It compares that
performance to the S&P/Barra Growth Index, a widely recognized market benchmark,
and the Lipper Large Cap Growth Funds Index.

The Fund began offering Investor Class shares on August 13, 1998. Performance
figures for Investor Class shares before that date are based on Premier Class
shares of the Fund. Since Investor Class shares have higher expenses, their
performance figures would have been lower.

The S&P/Barra Growth Index includes S&P 500 Index securities that have high
price-to-book ratios, low dividend yields and high price/earnings ratios. It's a
market-weighted index, which means each stock affects the index in proportion to
its market value.

Funds in the Lipper Large Cap Growth Funds Index normally invest in companies
with long-term earnings expected to grow significantly faster than the earnings
of the stocks represented in the major unmanaged stock indices.

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[Bar chart data]

<TABLE>
<S> <C>
------------------------------------
BEST QUARTER 27.32%
------------------------------------
4th quarter, 1998

------------------------------------
WORST QUARTER -15.53%
------------------------------------
3rd quarter, 1990
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS

For the periods ending December 31, 1999

<TABLE>
<CAPTION>
PAST PAST PAST
1 YEAR 5 YEARS 10 YEARS
-----------------------------------------------------------------------
<S> <C> <C> <C>
INVESTOR CLASS SHARES 31.54% 31.04% 18.41%
-----------------------------------------------------------------------
S&P/BARRA GROWTH INDEX 28.25% 33.61% 20.59%
-----------------------------------------------------------------------
LIPPER LARGE CAP GROWTH FUNDS INDEX 34.82% 30.73% 19.70%
-----------------------------------------------------------------------
</TABLE>

55
<PAGE>

CHASE EQUITY GROWTH FUND

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

None+

+There is a $10 fee for each wire transaction.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B1) FEES EXPENSES EXPENSES
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES 0.75% 0.25% 0.53%# 1.53%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.72%, the distribution
fees are expected to be 0.00%, the other expenses for Investor Class shares are
expected to be 0.53% and the total annual fund operating expenses for Investor
Class shares are expected not to exceed 1.25%. That's because The Chase
Manhattan Bank (Chase) and some of the Fund's other service providers have
volunteered not to collect a portion of their fees and to reimburse others.
Chase and these other service providers may end this arrangement at any time.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as shown
above.

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
-------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES $156 $483 $834 $1,824
-------------------------------------------------------
</TABLE>

56
<PAGE>

CHASE SMALL CAPITALIZATION FUND

[Begin sidebar]

The Fund's objective

The Fund aims to provide capital appreciation.

[End sidebar]

The Fund's main investment strategy

The Fund seeks capital appreciation by using an active equity management style
that focuses on delivering risk and return characteristics representative of a
small capitalization asset class. The Fund normally invests at least 70% of its
total assets in equity-based securities of small cap issuers. It primarily
targets companies with market capitalizations of $100 million to $1 billion.

The Fund emphasizes companies with above market average price/earnings ratios
and price/book ratios, below-average dividend yield and above-average market
volatility. The Fund will focus on companies with high-quality management, a
leading or dominant position in a major product line, new or innovative
products, services or processes, a strong financial position and a relatively
high rate of return of invested capital so that they can finance future growth
without having to borrow extensively from outside sources. The adviser uses a
disciplined stock selection process which focuses on identifying attractively
valued companies with positive business fundamentals. The Fund combines growth
and value styles of investing.

57
<PAGE>

CHASE SMALL CAPITALIZATION FUND

[Begin sidebar]

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs
(and lower performance) and increase your taxable dividends.

[End sidebar]

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

58
<PAGE>

The main investment risks

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some of the specific risks of investing in
Small Capitalization Fund.

The value of shares of the Fund will be influenced by conditions in stock
markets as well as the performance of the companies selected for the Fund's
portfolio.

The securities of small cap companies may trade less frequently and in smaller
volumes than securities of larger, more established companies. As a result,
share price changes may be more sudden or more erratic. Smaller companies may
have limited product lines, markets or financial resources, and they may depend
on a small management group.

Unsponsored depositary receipts may not provide as much information about the
underlying issuer and may not carry the same voting privileges as sponsored
depositary receipts.

In early 1999, the European Monetary Union implemented a new currency called the

[Begin sidebar]

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.

[End sidebar]
59
<PAGE>

CHASE SMALL CAPITALIZATION FUND

60
<PAGE>

CHASE SMALL CAPITALIZATION FUND

The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund has varied from year to year. This provides some
indication of the risks of investing in the Fund. The table shows the average
annual return over the past year, five years and since inception. It compares
that performance to the S&P 500 Index and the S&P 600 Index, widely recognized
market benchmarks, and the Lipper Small Cap Core Funds Index.

The Fund began offering Investor Class shares on August 12, 1998. Performance
figures for Investor Class shares before that date are based on Premier Class
shares of the Fund. Since Investor Class shares have higher expenses, their
performance figures would have been lower.

The S&P 500 Index is an unmanaged, broad-based index of 500 companies and is
generally considered to represent the U.S. market. The S&P 600 is an unmanaged
index of 600 small capitalization companies. In the past, the Fund has compared
its performance to the S&P 500 Index, but in the future, the Fund intends to
compare its performance to the S&P 600 Index instead. It is believed that the
new benchmark is more appropriate since it more accurately reflects the Fund's
investment strategy.

The Lipper Small Cap Core Funds Index consists of funds that invest at least 75%
of their equity assets in companies with three-year weighted average market
capitalizations of less than 250% of the dollar weighted median market
capitalization of the S&P Small Cap 600 Index.

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[Bar chart data]

<TABLE>
<S> <C>
------------------------------------
BEST QUARTER 17.04%
------------------------------------
2nd quarter, 1997

------------------------------------
WORST QUARTER -18.14%
------------------------------------
3rd quarter, 1998
</TABLE>

61
<PAGE>

CHASE SMALL CAPITALIZATION FUND

AVERAGE ANNUAL TOTAL RETURNS

For the periods ending December 31, 1999

<TABLE>
<CAPTION>
SINCE
PAST PAST INCEPTION
1 YEAR 5 YEARS (4/1/93)
----------------------------------------------------------------------
<S> <C> <C> <C>
INVESTOR CLASS SHARES 12.89% 18.71% 13.92%
----------------------------------------------------------------------
S&P 500 INDEX 21.03% 28.54% 19.01%
----------------------------------------------------------------------
S&P 600 INDEX 12.41% 17.05% 13.84%
----------------------------------------------------------------------
LIPPER SMALL CAP CORE FUNDS INDEX 20.17% 17.05% 13.91%
----------------------------------------------------------------------
</TABLE>

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

None+

+There is a $10 fee for each wire transaction.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B1) FEES EXPENSES EXPENSES
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR CLASS SHARES 0.75% 0.25% 2.15%# 3.15%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.60%, the distribution
fees are expected to be 0.00%, the other expenses for Investor Class shares are
expected to be 0.65% and the total annual fund operating expenses for Investor
Class shares are expected not to exceed 1.25%. That's because The Chase
Manhattan Bank (Chase) and some of the Fund's other service providers have
volunteered not to collect a portion of their fees and to reimburse others.
Chase and these other service providers may end this arrangement at any time.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

62
<PAGE>

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as shown
above.

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE

63
<PAGE>

THE FUNDS' INVESTMENT ADVISER

The Chase Manhattan Bank (Chase) is the investment adviser to the Fund. Chase is
a wholly owned subsidiary of The Chase Manhattan Corporation, a bank holding
company. Chase provides the Funds with investment advice and supervision. Chase
and its predecessors have more than a century of money management experience.
Chase is located at 270 Park Avenue, New York, New York 10017.

Chase is entitled to receive an annual fee for its services. The following chart
shows the maximum fee as a percentage of each Fund's average daily net assets:

<TABLE>
<CAPTION>
FUND FEE
---------------------------------
<S> <C>
MONEY MARKET FUND 0.30%
---------------------------------
SHORT-INTERMEDIATE
TERM U.S. GOVERNMENT
SECURITIES FUND 0.50%
---------------------------------
U.S. GOVERNMENT
SECURITIES FUND 0.50%
---------------------------------
INTERMEDIATE TERM
BOND FUND 0.50%
---------------------------------
INCOME FUND 0.50%
---------------------------------
BALANCED FUND 0.75%
---------------------------------
EQUITY INCOME FUND 0.75%
---------------------------------
CORE EQUITY FUND 0.75%
---------------------------------
EQUITY GROWTH FUND 0.75%
---------------------------------
SMALL CAPITALIZATION
FUND 0.75%
---------------------------------
</TABLE>

Chase Bank of Texas, N.A. (Chase Texas) is the sub-advisor to the Funds. Chase
Texas is a wholly owned subsidiary of The Chase Manhattan Corporation. It makes
the day-to-day investment decisions for these funds.

Chase Texas is located at 712 Main Street, Houston, Texas 77002.[logo]

64
<PAGE>

The portfolio managers

CHASE MONEY MARKET FUND The portfolio manager is Thomas Nelson, Head of Short
Term Investments at Chase. He has managed the portfolio since October 1999.
Prior to this position, he was responsible for the cash reinvestment of the
Securities Lending Division. Mr. Nelson joined Chase in 1987 as a portfolio
manager and trader for individual fixed income accounts.

CHASE SHORT-INTERMEDIATE TERM
U.S. GOVERNMENT SECURITIES FUND

The portfolio managers are Michael Bennis, Vice President and Senior Portfolio
Manager at Chase, Timothy Neumann, Head of the Taxable Core Investment Group at
Chase and Lynn J. Chen, Vice President and Portfolio Manager at Chase. Mr.
Bennis and Mr. Neumann have been responsible for the Fund since October 1999.
Ms. Chen has been responsible for the Fund since April 2000. Before joining
Chase in 1996, Mr. Bennis was a senior analyst and trader at Union Bank of
Switzerland Asset Management. Prior to joining Union Bank of Switzerland, he was
a fixed income analyst at Donaldson, Lufkin & Jenrette. Before joining Chase in
1997, Mr. Neumann was the portfolio manager at Lehman Brothers Global Asset
Management mortgage-backed securities accounts. Prior to joining Lehman, he
managed fixed income portfolios at Allstate Insurance. Before joining Chase in
1997, Ms. Chen spent seven years as both a portfolio manager and an analyst at
Nippon Life Insurance Company.

CHASE U.S. GOVERNMENT SECURITIES FUND
The portfolio managers are Mr. Bennis and Mr. Neumann. They have been
responsible for the Fund since October 1999.

CHASE INTERMEDIATE TERM BOND FUND
The portfolio managers are Leonard Lovito, a Vice President and Senior Portfolio
Manager at Chase and Mr. Neumann. They have managed the Fund since October 1999.
Mr. Lovito joined Chase in 1998. Prior to joining Chase, from 1984 to 1998, Mr.
Lovito was Vice President at J. & W. Seligman & Co., Inc. where he managed a
number of fixed income portfolios and mutual funds. Prior to joining Seligman,
Mr. Lovito was a senior Securities Administrator in the investment department of
the Dime Savings Bank of New York.

CHASE INCOME FUND
The portfolio managers are Andrew Russell, a Vice President and Portfolio
Manager at Chase and Mr. Neumann. They have been responsible for the Fund since
October 1999. Mr. Russell joined Chase in 1990 and has held several positions
within the U.S. fixed income area, including portfolio analyst, taxable
fixed-income trader and assistant trader. Mr. Russell is a member of the U.S.
fixed income area's quantitative research team.

CHASE BALANCED FUND
Henry Lartigue, Executive Vice President and Chief Investment Officer at Chase,
and Jeff Phelps, Portfolio Manager at Chase are responsible for the equity
portion of the portfolio. H. Mitchell Harper, Senior Vice President and
Portfolio Manager at Chase is responsible for the fixed income portion of the
portfolio. Mr. Lartigue has managed the equity portion of the portfolio since
July of 1994. He began his career as a securities analyst at Chase in 1984. Mr.
Lartigue then worked as

65
<PAGE>

an Equity Fund Manager until 1992. From July 1992 to June 1994, he worked as an
independent registered investment adviser. He returned to Chase in 1994. Mr.
Phelps has managed the equity portion of the portfolio since October 1999. Mr.
Phelps joined Chase in 1997. Prior to joining Chase, he was employed by Houston
Industries. Mr. Harper has managed the fixed income portion of the portfolio
since October 1999. Mr. Harper has been with Chase since 1987. Previously he
worked at John Alden Life Insurance Co. from 1985-1987, as Vice President,
Portfolio Management. Prior to that he was Vice President, Department
Head-Investments at Bank Life & Casualty.

CHASE EQUITY INCOME FUND
The portfolio manager is Robert Heintz, a Senior Investment Officer at Chase. He
has managed the portfolio since its inception on March 29, 1988. Mr. Heintz has
worked for Chase Texas since 1983.

CHASE CORE EQUITY FUND
Mr. Lartigue has managed the portfolio since January of 1996. Since January 1999
the funds have been co-managed with Mr. Phelps.

CHASE EQUITY GROWTH FUND
Mr. Lartigue has managed the portfolio since July of 1994.

CHASE SMALL CAPITALIZATION FUND
The portfolio manager is Juliet Ellis, a Senior Investment Officer at Chase. She
has managed the portfolio since September of 1993. Ms. Ellis has worked at Chase
Texas since 1987. Before becoming portfolio manager for the Small Capitalization
Fund, Ms. Ellis was the director of research and an equity analyst at Chase
Texas.[logo]

66
<PAGE>

HOW YOUR ACCOUNT WORKS

Buying Fund Shares

There is no commission or sales charge to buy Investor Class shares.[logo]

MINIMUM INVESTMENTS

<TABLE>
<CAPTION>
TYPE OF INITIAL ADDITIONAL
ACCOUNT INVESTMENT INVESTMENTS
-----------------------------------------
<S> <C> <C>
REGULAR
ACCOUNT $2,500 $100
-----------------------------------------
SYSTEMATIC
INVESTMENT
PLAN $1,000 $100
-----------------------------------------
INDIVIDUAL
RETIREMENT
ACCOUNTS
(IRAs) AND
ROTH IRAs $1,000 $100
-----------------------------------------
SEP-IRAs $1,000 $100
-----------------------------------------
EDUCATION
IRAs $ 500 $100
-----------------------------------------
SIMPLE
IRAs $ 25 $ 25
-----------------------------------------
</TABLE>

You can buy shares three ways:

Through the Chase Funds
Service Center

Call 1-888-524-2730 or

Complete the enclosed application form and mail it along with a check for the
amount you want to invest to:

Chase Funds Service Center,
P.O. Box 419392
Kansas City, MO 64141-6392

67
<PAGE>

Through your investment representative
Tell your representative which Funds you want to buy and he or she will contact
us. Your representative may charge you a fee and may offer additional services,
such as special purchase and redemption programs. Some representatives charge a
single fee that covers all services. Your adviser may impose different minimum
investments and earlier deadlines to buy and sell shares.

Through a Systematic Investment Plan
You can make regular automatic purchases of at least $100. For information about
the Systematic Investment Plan, see the Shareholder services section of this
prospectus.

Investment Details

The price of the shares is the net asset value per share (NAV). NAV is the value
of everything a Fund owns, minus everything it owes, divided by the number of
shares held by investors. You'll pay the public offering price, which is based
on the next NAV calculated after the Chase Funds Service Center receives your
instructions. Each Fund calculates its NAV once each day at the close of regular
trading on the New York Stock Exchange.

Each Fund other than the Money Market Fund generally values its assets at their
market value but may use fair value if market prices are unavailable. The Money
Market Fund seeks to maintain a stable NAV of $1.00. It uses the amortized cost
method to value its portfolio of securities. This method provides more stability
in valuations. However, it may also result in periods during which the stated
value of a security is different than the price the Fund would receive if it
sold the investment.

The center accepts purchase orders on any business day that the New York Stock
Exchange is open. Normally, if the Chase Funds Service Center receives your
order in proper form by the close of regular trading on the New York Stock
Exchange, we'll process your order at that day's price. An order is in proper
form only after payment is converted into federal funds.

You must provide a Taxpayer Identification Number or Social Security Number when
you open an account. The Fund has the right to refuse any purchase order or to
stop offering shares for sale at any time.

Make your check out to Chase Funds in U.S. dollars. We won't accept credit
cards, cash, or checks from a third party. You cannot sell your shares until
your check has cleared, which could take more than 15 calendar days. If you buy
through an Automated Clearing House, you can't sell your shares until the
payment clears. That could take more than seven business days.

Your purchase will be cancelled if your check doesn't clear and you'll be
responsible for any expenses and losses to the Funds. Orders by wire will be
cancelled if the Chase Funds Service Center doesn't receive payment by 4:00 p.m.
Eastern time on the day you buy.

If you're planning to exchange, sell or transfer shares to another person

68
<PAGE>

HOW YOUR ACCOUNT WORKS

shortly after buying the shares, you should pay by certified check to avoid
delays. The Fund will not issue certifi- cates for Fund shares.

Selling Fund shares

There is no commission or charge to sell Investor Class shares of the Funds.

You can sell your shares three ways:

Through the Chase Funds Service Center
Call 1-888-524-2730. We will mail you a check or send the proceeds via
electronic transfer or wire. You cannot sell by phone if you have changed your
address of record within the previous 30 days. If you sell $25,000 or more worth
of Funds by phone, we'll send the money by wire only to a bank account on our
records. We charge $10 for each transaction by wire.

Send a signed letter with your instructions to:

Chase Funds Service Center,
P.O. Box 419392
Kansas City, MO 64141-6392

Through your investment representative
Tell your representative which Funds you want to sell. He or she will send the
necessary documents to the Chase Funds Service Center. Your representative might
charge you for this service.

Through a Systematic Withdrawal Plan
You can automatically sell as little as $50 worth of shares. For information
about the Systematic Withdrawal Plan, see the Shareholder services section of
this prospectus.

You can sell your Investor Class shares on any day the Funds are accepting
purchase orders. You'll receive the next NAV calculated after the Chase Funds
Service Center receives your order.

Under normal circumstances, if the Chase Funds Service Center receives your
order before the close of regular trading on the New York Stock Exchange, each
Fund will send you the proceeds the next business day. We won't accept an order
to sell shares if the Fund hasn't collected your payment for the shares. Each
Fund may stop accepting orders to sell and may postpone payments for more than
seven days, as federal securities laws permit.[logo]

Signature guarantees

Before you sell, you'll need signatures guaranteed for all registered owners or
their legal representative if:

o you want to sell shares with a net asset value of $100,000 or more

o you want your payment sent to an address other than the one we have in our
records.

We may also need additional documents or a letter from a surviving joint owner
before selling the shares. Contact the Chase Funds Service Center for more
details.

Exchanging Fund shares

You can exchange your shares for shares of certain other Chase Funds at net
asset value, beginning 15 days after you buy your shares.

69
<PAGE>

HOW YOUR ACCOUNT WORKS

You can exchange your shares three ways:

Through your investment representative
Tell your representative which Funds you want to exchange from and to. He or she
will send the necessary documents to the Chase Funds Service Center. Your
representative might charge you for this service.

Through the Chase Funds Service Center
Call 1-888-524-2730 to ask for details.

Through a Systematic Exchange Plan
You can automatically exchange money from one Chase account to another of the
same class. Call the Chase Funds Service Center for details.

You should not exchange shares as means of short-term trading as this could
increase management cost and affect all shareholders. We reserve the right to
limit the number of exchanges or to refuse an exchange. We may also terminate
this privilege. We charge an administration fee of $5 for each exchange if you
make more than 10 exchanges in a year or three exchanges in a quarter. See the
Statement of Additional Information to find out more about the exchange
privilege.[logo]

Other information concerning the Funds

We may close your account if the bal- ance falls below $500 because you've sold
shares. We may also close the account if you are in the Systematic Investment
Plan and fail to meet investment minimums over a 12-month period. We'll give you
60 days notice before closing your account.

Unless you indicate otherwise on your account application, we may act on
redemption and transfer instructions we receive by phone. If someone trades on
your account by phone, we'll ask that person to confirm your account
registration and address to make sure they match those you gave us. If they
supply the correct information, we are generally authorized to follow that
person's instructions. We'll take all reasonable precautions to confirm that the
instructions are genuine. You agree that you will not hold a Fund liable for any
loss or expenses from any sales request, if the Fund has taken reasonable
precautions. The Fund will be liable for any losses to you from an unauthorized
sale or fraud against you only if it does not follow reasonable procedures.

You may not always reach the Chase Funds Service Center by telephone. This may
be true at times of unusual market changes and shareholder activity. You can
mail us your instructions or contact your investment representative or agent. We
may modify or cancel the sale of shares by phone without notice.

Chase and its affiliates and the Funds and their affiliates, agents and
subagents may share information about shareholders and their accounts with each
other and with others unless this sharing is prohibited by contract. The
information can be used for a variety of purposes, including offering investment
and insurance products to shareholders.[logo]

70
<PAGE>

HOW YOUR ACCOUNT WORKS

For shareholders that bank with Chase, Chase may aggregate investments in the
Chase Funds with balances held in Chase bank accounts for purposes of
determining eligibility for certain bank privileges that are based on specified
minimum balance requirements, such as reduced or no fees for certain banking
services or preferred rates on loans and deposits. Chase and certain other
financial institutions may, at their own expense, provide gifts, such as
computer software packages, guides and books related to investment or additional
Fund shares valued up to $250 to their customers that invest in the Chase Funds.

Distribution arrangements

The Funds' distributor is CFD Fund Distributors Inc., which we call CFD in this
prospectus. CFD is a subsidiary of The BISYS Group, Inc. and is not affiliated
with Chase.

Each Fund has adopted a Rule 12b-1 distribution plan for Investor Class shares.
It provides for payment of distribution fees at an annual rate of up to:

o 0.10% of the average daily net assets attributed to Investor Class
shares of the Money Market Fund

o 0.25% of the average daily net assets attributed to Investor Class
shares of each other Fund described in this prospectus.

The money from these payments is used to compensate the Funds' distributor and
broker-dealers for the services they provide and the expenses they incur selling
Investor Class shares. Payments are not tied to the actual expenses incurred.

Because 12b-1 expenses are paid out of a Fund's assets on an ongoing basis, over
time these fees will increase the cost of your investment and may cost you more
than other types of sales charges.[logo]

Distributions and taxes

The Funds can earn income and they can realize capital gains. The Funds deduct
any expenses and pay these earnings out to shareholders as distributions.

The Chase Money Market Fund declares dividends daily, so your shares can start
earning dividends on the day you buy them. We distribute the dividends monthly.
We distribute any short-term capital gain at least annually. The Chase Money
Market Fund does not expect to realize long-term capital gain.

The Chase Short-Intermediate Term U.S. Government Securities Fund, Chase U.S.
Government Securities Fund, Chase Intermediate Term Bond Fund and Chase Income
Fund (the Fixed Income Funds) declare dividends daily and distribute the net
investment income monthly. The Chase Balanced Fund, Chase Equity Income Fund,
Chase Core Equity Fund, Chase Equity Growth Fund and Chase Small Capitalization
Fund distribute any net investment income at least quarterly. Net capital gain
is distributed at least annually.

You have three options for your distributions if your financial services firm
offers them. You may:

71
<PAGE>

o reinvest all of them in additional Fund shares;

o take distributions of net investment income in cash or as a deposit in a
pre-assigned bank account and

o reinvest distributions of net capital gain in additional shares; or

o take all distributions in cash or as a deposit in a pre-assigned bank
account.

If you don't select an option when you open your account, we'll reinvest all
distributions. If we reinvest your distributions, they will be in the same class
of shares. The taxation of dividends won't be affected by the form in which you
receive them.

Dividends of net investment income are usually taxable as ordinary income at the
federal, state and local levels. The state or municipality where you live may
not charge you state and local taxes on dividends earned on certain bonds.
Dividends earned on bonds issued by the U.S. government and its agencies may
also be exempt from some types of state and local taxes.

If you receive distributions of net capital gain, the tax rate will be based on
how long the Fund held a particular asset, not on how long you have owned your
shares. If you buy shares just before a distribution, you will pay tax on the
entire amount of the taxable distribution you receive, even though the NAV will
be higher on that date because it includes the distribution amount.

The Fixed Income Funds, the Chase Balanced Fund and Chase Equity Income Fund
expect that their distri butions will consist primarily of ordinary income. The
Chase Core Equity Fund, Chase Equity Growth Fund and Chase Small Capitalization
Fund expect that their distributions will consist primarily of capital gains.

Early in each calendar year, each Fund will send you a notice showing the amount
of distributions you received in the preceding year and the tax status of those
distributions.

For tax purposes, an exchange is treat- ed as selling Fund shares. This will
generally result in a capital gain or loss to you.

The above is a general summary of tax implications of investing in the Funds.
Please consult your tax adviser to see how investing in a Fund will affect your
own tax situation.[logo]

Shareholder services

Systematic investment plan

You can regularly invest $100 or more in the first or third week of any month.
The money is automatically debited from your checking or savings account. You
must make an initial deposit of at least $1,000 to start the plan.

You can set up a plan when you open an account by completing the appro- priate
section of the application.

Current shareholders can join by send- ing a signed letter and a deposit slip or
void check to the Chase Funds Service Center. Call 1-888-524-2730 for complete
instructions.

72
<PAGE>

HOW YOUR ACCOUNT WORKS

Systematic Withdrawal Plan

You can make regular withdrawals of $50 or more. You can have automatic
withdrawals made monthly, quarterly or semiannually. Your account must contain
at least $5,000 to start the plan. Call 1-888-524-2730 for complete
instructions.

Systematic exchange

You can transfer assets automatically from one Chase account to another on a
regular basis. It's a free service.[logo]

Telephone privileges

You can buy, sell and exchange your shares by calling the Chase Funds Service
Center. Telephone privileges are provided automatically, unless you tell us
otherwise on your account application.[logo]

73
<PAGE>

FINANCIAL HIGHLIGHTS

The Financial Highlights tables are intended to help you understand the Funds'
financial performance for the periods since Investor Class shares were first
offered. The total returns in the tables represent the rate an investor would
have earned or lost on an investment in the Funds (assuming reinvestment of all
dividends and distributions).

The following tables provide selected per share data and ratios for one Investor
Class Share outstanding throughout each period shown.

This information is supplemented by financial statements including accompanying
notes appearing in the Funds' Annual Report to Shareholders for the year ended
December 31, 1999, which is incorporated by reference into the SAI. Shareholders
may obtain a copy of this annual report by contacting the Funds or their
Shareholder Servicing Agent.

The financial statements, which include the financial highlights, have been
audited by PricewaterhouseCoopers LLP, independent accountants, whose report
thereon is included in the Annual Report to Shareholders.

74
<PAGE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
Chase
Short-Intermediate Term U.S.
Chase Money Market Fund Government Securities Fund
--------------------------- ---------------------------
Year 11/10/98* Year 11/10/98*
Ended Through Ended Through
PER SHARE OPERATING PERFORMANCE: 12/31/99 12/31/98 12/31/99 12/31/98
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $12.59 $12.64
-----------------------------------------------------------------------------------------------------------------------------
Income from Investments Operations:
Net Investment Income 0.05 0.01 0.57 0.08
Net Gains or Losses in Investments (both realized and unrealized) -- -- (0.51) --
-------- --------- -------- --------
Total from Investment Operations 0.05 0.01 0.06 0.08
Less Distributions:
Dividends from Net Investment Income 0.05 0.01 0.57 0.09
Distributions from Capital Gains -- -- 0.04 0.04
In Excess of Realized Capital Gains -- -- -- --
-------- -------- -------- --------
Total Distributions 0.05 0.01 0.61 0.13
-----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $12.04 $12.59
-----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 4.78% 0.69% 0.48% 0.60%
=============================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
-----------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $+ $+ $+ $+
-----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
-----------------------------------------------------------------------------------------------------------------------------
Expenses 0.60% 0.60% 0.99% 1.03%
-----------------------------------------------------------------------------------------------------------------------------
Net Investment Income 4.71% 4.72% 4.58% 4.47%
-----------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and assumption of expenses 25.25% 0.80% 57.39% 1.58%
-----------------------------------------------------------------------------------------------------------------------------
Net Investment Income without waivers and assumption of expenses (19.94%) 4.52% (51.82%) 3.92%
-----------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate -- -- 91% 87%
-----------------------------------------------------------------------------------------------------------------------------

<CAPTION>
Chase U.S. Government
Securities Fund
---------------------------
Year 11/10/98*
Ended Through
PER SHARE OPERATING PERFORMANCE: 12/31/99 12/31/98
-------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $13.83 $14.42
-------------------------------------------------------------------------------------------------
Income from Investments Operations:
Net Investment Income 0.61 0.09
Net Gains or Losses in Investments (both realized and unrealized) (0.99) 0.10
-------- --------
Total from Investment Operations (0.38) 0.19
Less Distributions:
Dividends from Net Investment Income 0.61 0.09
Distributions from Capital Gains -- 0.68
In Excess of Realized Capital Gains -- 0.01
-------- --------
Total Distributions 0.61 0.78
-------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $12.84 $13.83
-------------------------------------------------------------------------------------------------
TOTAL RETURN (2.79%) 1.37%
=================================================================================================
RATIOS/SUPPLEMENTAL DATA:
-------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $+ $+
-------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
-------------------------------------------------------------------------------------------------
Expenses 1.00% 1.03%
-------------------------------------------------------------------------------------------------
Net Investment Income 4.62% 4.45%
-------------------------------------------------------------------------------------------------
Expenses without waivers and assumption of expenses 45.80% 1.92%
-------------------------------------------------------------------------------------------------
Net Investment Income without waivers and assumption of expenses (40.18%) 3.56%
-------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 19% 110%
-------------------------------------------------------------------------------------------------
</TABLE>

* Commencement of offering of class of shares.
# Short periods have been annualized.
+ Amount rounds to less than one million.

75
<PAGE>

<TABLE>
<CAPTION>
Chase Intermediate
Term Bond Fund Chase Income Fund
--------------------------- ---------------------------
Year 11/10/98* Year 11/10/98*
Ended Through Ended Through
PER SHARE OPERATING PERFORMANCE: 12/31/99 12/31/98 12/31/99 12/31/98
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $12.87 $12.91 $20.46 $20.77
-----------------------------------------------------------------------------------------------------------------------------
Income from Investments Operations:
Net Investment Income 0.63 0.09 0.98 0.14
Net Gains or Losses in Investments (both realized and unrealized) (0.80) 0.11 (1.57) 0.18
-------- -------- -------- --------
Total from Investment Operations (0.17) 0.20 (0.59) 0.32
Less Distributions:
Dividends from Net Investment Income 0.63 0.09 0.98 0.15
Distributions from Capital Gains 0.01 0.15 0.17 0.48
-------- -------- -------- --------
Total Distributions 0.64 0.24 1.15 0.63
-----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $12.06 $12.87 $18.72 $20.46
-----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1.36%) 1.52% (2.92%) 1.54%
=============================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
-----------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $+ $+ $1 $1
-----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
-----------------------------------------------------------------------------------------------------------------------------
Expenses 0.99% 1.03% 0.99% 1.03%
-----------------------------------------------------------------------------------------------------------------------------
Net Investment Income 5.09% 4.64% 5.04% 4.72%
-----------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and assumption of expenses 9.79% 1.72% 6.22% 1.44%
-----------------------------------------------------------------------------------------------------------------------------
Net Investment Income without waivers and assumption of expenses (3.71%) 3.95% (0.19%) 4.31%
-----------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 85% 135% 120% 54%
-----------------------------------------------------------------------------------------------------------------------------

<CAPTION>
Chase Balanced Fund
---------------------------
Year 10/16/98*
Ended Through
PER SHARE OPERATING PERFORMANCE: 12/31/99 12/31/98
-------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $34.51 $31.87
-------------------------------------------------------------------------------------------------
Income from Investments Operations:
Net Investment Income 0.70@ 0.10
Net Gains or Losses in Investments (both realized and unrealized) 4.05 3.95
-------- --------
Total from Investment Operations 4.75 4.05
Less Distributions:
Dividends from Net Investment Income 0.61 0.16
Distributions from Capital Gains 0.19 1.25
-------- --------
Total Distributions 0.80 1.41
-------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $38.46 $34.51
-------------------------------------------------------------------------------------------------
TOTAL RETURN 13.94% 12.78%
=================================================================================================
RATIOS/SUPPLEMENTAL DATA:
-------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $2 $1
-------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
-------------------------------------------------------------------------------------------------
Expenses 1.25% 1.25%
-------------------------------------------------------------------------------------------------
Net Investment Income 1.94 1.84%
-------------------------------------------------------------------------------------------------
Expenses without waivers and assumption of expenses 3.34% 107.16%
-------------------------------------------------------------------------------------------------
Net Investment Income without waivers and assumption of expenses (0.15%) (104.07%)
-------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 45% 58%
-------------------------------------------------------------------------------------------------
</TABLE>

* Commencement of offering of class of shares.
# Short periods have been annualized.
@ Calculated based upon average shares outstanding + Amount rounds to less
than one million.

76
<PAGE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
Chase Equity Income Fund Chase Core Equity Fund
-------------------------- --------------------------
Year 8/24/98* Year 9/10/98*
Ended Through Ended Through
PER SHARE OPERATING PERFORMANCE: 12/31/99 12/31/98 12/31/99 12/31/98
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $46.23 $40.49 $26.52 $21.49
---------------------------------------------------------------------------------------------------------------------------
Income from Investments Operations:
Net Investment Income 0.20@ 0.06 (0.05)@ --
Net Gains or Losses in Investments (both realized and unrealized) 5.63 5.89 6.28 6.22
-------- -------- -------- --------
Total from Investment Operations 5.83 5.95 6.23 6.22
Less Distributions:
Dividends from Net Investment Income 0.23 0.07 0.01 0.02
Distributions from Capital Gains 2.00 0.14 0.55 1.17
-------- -------- -------- --------
Total Distributions 2.23 0.21 0.56 1.19
---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $49.83 $46.23 $32.19 $26.52
---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 12.70% 14.70% 23.59% 29.08%
===========================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
---------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $4 $1 $6 $1
---------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
---------------------------------------------------------------------------------------------------------------------------
Expenses 1.24% 1.18% 1.24% 1.23%
---------------------------------------------------------------------------------------------------------------------------
Net Investment Income 0.42% 0.57% (0.13%) (0.03%)
---------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and assumption of expenses 3.33% 37.61% 3.02% 140.46%
---------------------------------------------------------------------------------------------------------------------------
Net Investment Income without waivers and assumption of expenses (1.67%) (35.86%) (1.89%) (139.26%)
---------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 16% 3% 11%+ 32%
---------------------------------------------------------------------------------------------------------------------------

<CAPTION>
Chase Small
Chase Equity Growth Fund Capitalization Fund
-------------------------- --------------------------
Year 8/13/98* Year 8/12/98*
Ended Through Ended Through
PER SHARE OPERATING PERFORMANCE: 12/31/99 12/31/98 12/31/99 12/31/98
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $52.30 $45.57 $19.94 $19.86
---------------------------------------------------------------------------------------------------------------------------
Income from Investments Operations:
Net Investment Income (0.29)@ (0.02) (0.08)@ (0.01)
Net Gains or Losses in Investments (both realized and unrealized) 16.75 8.53 2.65 1.44
-------- -------- -------- --------
Total from Investment Operations 16.46 8.51 2.57 1.43
Less Distributions:
Dividends from Net Investment Income -- -- -- 0.71
Distributions from Capital Gains 0.91 1.78 -- 0.64
-------- -------- -------- --------
Total Distributions 0.91 1.78 -- 1.35
---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $67.85 $52.30 $22.51 $19.94
---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 31.54% 18.80% 12.89% 7.56%
===========================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
---------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $15 $1 $1 $1
---------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
---------------------------------------------------------------------------------------------------------------------------
Expenses 1.24% 1.25% 1.24% 1.24%
---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (0.48%) (0.19%) (0.37%) (0.18%)
---------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and assumption of expenses 2.34% 5.88% 6.02% 74.81%
---------------------------------------------------------------------------------------------------------------------------
Net Investment Income without waivers and assumption of expenses (1.58%) 4.82% (5.15%) (73.75%)
---------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 15%- 35% 60% 45%
---------------------------------------------------------------------------------------------------------------------------
</TABLE>

* Commencement of offering of class of shares.
# Short periods have been annualized.
- Portfolio turnover reflects the period January 1, 1999 to August 11, 1999.
After August 11, 1999, all the Fund's investable assets were invested in
Equity Growth Portfolio.
+ Portfolio turnover reflects the period January 1, 1999 to August 11, 1999.
After August 11, 1999, all the Fund's investable assets were invested in
Core Equity Portfolio.
@ Calculated based upon average shares outstanding.

77
<PAGE>

What The Terms Mean

COLLATERALIZED MORTGAGE OBLIGATIONS: debt securities that are collateralized by
a portfolio of mortgages or mortgage backed securities.

DEBT SECURITIES: securities used by issuers, such as governmental entities and
corporations, to borrow money. The issuer usually pays a fixed, variable or
floating rate of interest and repays the amount borrowed at the maturity date of
the security. However, if a borrower issues a zero coupon debt security, it does
not make regular interest payments.

DEPOSITORY RECEIPTS: instruments which are typically issued by financial
institutions and which represent ownership of securities of foreign
corporations. Depository receipts are usually designed for use on U.S. and
European securities exchanges.

DISTRIBUTION FEE: a fee that covers the cost of the distribution system used to
sell shares to the public.

DOLLAR-WEIGHTED AVERAGE MATURITY: The average maturity of the Fund is the
average amount of time until the issuers of the debt securities in the Fund's
portfolio must pay off the principal amount of the debt. "Dollar weighted" means
the larger the dollar value of the debt security in the Fund's portfolio, the
more weight it gets in calculating this average.

DURATION: A mathematical calculation of the average life of a bond that serves
as a useful measure of its price risk. Each year of duration represents an
expected 1% change in interest rates. For example, if a bond has an average
duration of 4 years, its price will move 4% when interest rates move 1%.

FUNDAMENTAL RESEARCH: method which concentrates on "fundamental" information
about an issuer, such as its financial statements, history, management, etc.

GROWTH APPROACH: approach which focuses on identifying securities of companies
whose earnings growth potential appears to the manager to be greater than the
market in general and whose growth in revenue is expected to continue for an
extended period.

MANAGEMENT FEE: a fee paid to the investment adviser to manage the Fund and make
decisions about buying and selling the Fund's investments.

MORTGAGE-RELATED SECURITIES: securities that directly or indirectly represent an
interest in, or are secured by and paid from, mortgage loans secured by real
property.

OTHER EXPENSES: miscellaneous items, including transfer agency, custody and
registration fees.

REPURCHASE AGREEMENTS: a type of short-term investment in which a dealer sells
securities to the Fund and agrees to buy them back later at a set price. In
effect, the dealer is borrowing the Fund's money for a short time, using the
securities as collateral.

SHAREHOLDER SERVICE FEE: a fee to cover the cost of paying shareholder servicing
agents to provide certain support services for your account.

78
<PAGE>

STRIPPED OBLIGATIONS: debt securities which are separately traded interest-only
or principal-only components of an underlying obligation.

TECHNICAL ANALYSIS: method which focuses on historical price trends in an
attempt to predict future price movements.

VALUE APPROACH: approach which focuses on identifying securities that the
adviser believes are undervalued by the market, as measured by certain financial
formulas.

YIELD CURVE: measure showing relationship among yields of similar bonds with
different maturities.[logo]

79
<PAGE>

HOW TO REACH US

More information

You'll find more information about the Funds in the following documents:

ANNUAL AND SEMI-ANNUAL REPORTS Our annual and semi-annual reports contain more
information about each Fund's investments and performance. The annual report
also includes details about the market conditions and investment strategies that
had a significant effect on each Fund's performance during the last fiscal year.

STATEMENT OF ADDITIONAL INFORMATION (SAI) The SAI contains more detailed
information about the Funds and their policies. By law, it's considered to be
part of this prospectus.

You can get a free copy of these documents and other information, or ask us any
questions, by calling us at 1-888-524-2730 or writing to:

Chase Funds Service Center
P.O. Box 419392
Kansas City, MO 64141-6392

If you buy your shares through The Chase Manhattan Bank or another institution,
you should contact that institution directly for more information. You can also
find information on-line at www.chasefunds.com on the internet.

You can write or e-mail the SEC's Public Reference Room and ask them to mail you
information about the Funds, including the SAI. They'll charge you a copying fee
for this service. You can also visit the Public Reference Section and copy the
documents while you're there.

Public Reference Section of the SEC
Washington, DC 20549-0102.
1-202-942-8090
E-mail: [email protected]

Reports, a copy of the SAI and other information about the Funds is also
available on the SEC's website at http://www.sec.gov.

The Fund's Investment Company Act File No. is 811-5526

Chase Funds Fulfillment Center
393 Manley Street
West Bridgewater, MA 02379-1039
<PAGE>

PROSPECTUS APRIL 28, 2000

Chase Funds

CHASE MONEY
MARKET FUND

CHASE SHORT-
INTERMEDIATE TERM
U.S. GOVERNMENT
SECURITIES FUND

CHASE U.S.
GOVERNMENT
SECURITIES FUND

CHASE INTERMEDIATE
TERM BOND FUND

CHASE INCOME FUND

CHASE BALANCED
FUND

CHASE EQUITY INCOME
FUND

CHASE CORE EQUITY
FUND

CHASE EQUITY
GROWTH FUND

CHASE SMALL
CAPITALIZATION FUND

The Securities and
Exchange Commission
has not approved or
disapproved these
securities or determined
if this prospectus is
truthful or complete.
Any representation to
the contrary is a criminal
offense.

[CHASE
THE RIGHT RELATIONSHIP IS EVERYTHING.[RegTM] LOGO]

PSCF2-1-400

<PAGE>

<TABLE>
<S> <C>
CHASE MONEY MARKET FUND 1

CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT 6
SECURITIES FUND

CHASE U.S. GOVERNMENT SECURITIES FUND 12

CHASE INTERMEDIATE TERM BOND FUND 18

CHASE INCOME FUND 24

CHASE BALANCED FUND 30

CHASE EQUITY INCOME FUND 38

CHASE CORE EQUITY FUND 44

CHASE EQUITY GROWTH FUND 50

CHASE SMALL CAPITALIZATION FUND 56

FUND MANAGEMENT 62

THE FUNDS' INVESTMENT
ADVISOR 62

HOW YOUR ACCOUNT WORKS 65

BUYING FUND SHARES 65

SELLING FUND SHARES 66

EXCHANGING FUND SHARES 66

OTHER INFORMATION CONCERNING THE FUNDS 67

DISTRIBUTIONS AND TAXES 67

FINANCIAL HIGHLIGHTS 69

WHAT THE TERMS MEAN 80

HOW TO REACH US Back cover
</TABLE>

<PAGE>

CHASE MONEY MARKET FUND

[BEGIN SIDE BAR]

The Fund's
objective
The Fund aims to
provide the highest
possible level of
current income while
still maintaining
liquidity and
preserving capital.

[END SIDE BAR]

The Fund's main investment strategy

The Fund invests in high quality, short-term money market instruments which are
issued and payable in U.S. dollars.

The Fund principally invests in:

o high quality commercial paper and other short-term debt securities,
including floating and variable rate demand notes of U.S. and foreign
corporations
o debt securities issued or guaranteed by qualified banks. These are:
o U.S. banks with more than $1 billion in total assets and foreign
branches of these banks
o foreign banks with the equivalent of more than $10 billion in total
assets and which have branches or agencies in the U.S.
o other U.S. or foreign commercial banks which the Fund's advisers judge
to have comparable credit standing
o securities issued or guaranteed by the U.S. Government, its agencies or
authorities
o asset-backed securities
o repurchase agreements.

The dollar weighted average maturity of the Fund will be 90 days or less and
the Fund will buy only those instruments which have remaining maturities of 397
days or less.

1
<PAGE>

CHASE MONEY MARKET FUND

The Fund seeks to maintain a net asset value of $1.00 per share.

The Fund seeks to develop an appropriate portfolio by considering the
differences in yields among securities of different maturities, market sectors
and issuers.

The Fund may change any of its investment policies (including its investment
objective) without shareholder approval.[logo]

[START SIDE BAR]

FREQUENCY OF TRADING
How frequently the Fund buys
and sells securities will vary
from year to year, depending on
market conditions. High trading
activity generally means higher
transaction costs.

[END SIDE BAR]

2
<PAGE>

The main investment risks

The Fund attempts to keep its net asset value constant, but there's no
guarantee it will be able to do so.

The value of money market investments tends to fall when prevailing interest
rates rise, although they're generally less sensitive to interest rate changes
than longer-term securities.

Repurchase agreements involve some risk to the Fund if the other party does not
live up to its obligations under the agreement.

Although the Fund seeks to be fully invested, it may at times hold some of its
assets in cash. This would hurt the Fund's performance.[logo]

[BEGIN SIDE BAR]

Securities in the Fund's portfolio
may not earn as high a current
income as longer term or lower
quality securities.

An investment in the Fund isn't a
deposit of The Chase Manhattan
Bank and it isn't insured or
guaranteed by the Federal Deposit
Insurance Corporation or any
other government agency.
Although the Cash Management
Money Market Fund seeks to
preserve the value of your
investment at $1.00 per share,
it is possible to lose money by
investing in the Fund.

[END SIDE BAR]

3
<PAGE>

CHASE MONEY MARKET FUND
The Fund's past performance

YEAR-BY-YEAR RETURNS
Past performance does not predict how this
Fund will perform in the future.

[BAR CHART PLOT POINTS]

1990 7.80%
1991 6.01%
1992 3.51%
1993 2.60%
1994 3.77%
1995 5.57%
1996 5.06%
1997 5.18%
1998 5.20%
1999 4.89%

[END BAR CHART]

<TABLE>
<S> <C>
-------------------------------------
BEST QUARTER 1.91%
-------------------------------------
1st quarter, 1990

-------------------------------------
WORST QUARTER 0.62%
-------------------------------------
2nd quarter, 1993
3rd quarter, 1993
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS

For the periods ending December 31, 1999

<TABLE>
<CAPTION>
PAST PAST
PAST 1 YEAR 5 YEARS 10 YEARS
<S> <C> <C> <C>
----------------------------------------------------------
PREMIER CLASS SHARES 4.89% 5.18% 4.95%
----------------------------------------------------------
</TABLE>

4
<PAGE>

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------
PREMIER CLASS SHARES 0.30% NONE 0.26%# 0.56%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.24% and the total
annual fund operating expenses for Premier Class shares are expected not to
exceed 0.50%. That's because The Chase Manhattan Bank (Chase) and some of the
Fund's other service providers have volunteered not to collect a portion of
their fees and to reimburse others. Chase and these other service providers may
end this arrangement at any time.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

o you invest $10,000
o you sell all your shares at the end of the period
o your investment has a 5% return each year, and
o the Fund's operating expenses are not waived and remain the same as shown
above.

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
<S> <C> <C> <C> <C>
------------------------------------------------------
PREMIER CLASS SHARES $57 $179 $313 $701
------------------------------------------------------
</TABLE>

5
<PAGE>

CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND

[BEGIN SIDE BAR]

The Fund's
objective
The Fund aims to
provide as high a
level of current
income as is
consistent with
preservation of
capital.

[END SIDE BAR]

The Fund's main investment strategy

To reduce volatility, under normal market conditions, the Fund maintains a
dollar-weighted average maturity for the overall portfolio of between two and
five years. This is because the prices of shorter-term securities tend to be
less volatile than the prices of longer-term securities. There is no
restriction on the maturity of any individual security in the portfolio. The
Fund's adviser adjusts the average maturity of the Fund based on its outlook
for the economy.

6
<PAGE>

When making investment decisions for the Fund, the Fund's adviser considers
many factors in addition to current yield, including preservation of capital,
maturity and yield to maturity. The Fund's adviser will adjust the Fund's
investments in certain securities or types of securities based on its analysis
of changing economic conditions and trends. The Fund's adviser may sell one
security and buy another security of comparable quality and maturity to take
advantage of what it believes to be short-term differences in market values or
yields.

The Fund may enter into "dollar rolls" in which the Fund sells mortgage-backed
securities and at the same time contracts to buy back very similar securities
on a future date. It may also buy asset-backed securities. These receive a
stream of income from a particular asset, such as credit card receivables.

To temporarily defend its assets during unusual market conditions, the Fund may
invest any portion of its assets in high quality money market instruments and
repurchase agreements.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

[BEGIN SIDE BAR]

FREQUENCY OF TRADING
The Fund may trade securities
actively, which could increase
transaction costs, thus lowering
performance, and increase your
taxable dividends.

[END SIDE BAR]

7
<PAGE>

CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND

The main investment risks

When the Fund invests in mortgage-related securities, the value of the Fund
could change more often and to a greater degree than if it did not buy
mortgage-backed securities. That's because the prepayment features on some
mortgage-related securities make them more sensitive to interest rate changes.
Mortgage-related securities are subject to scheduled and unscheduled principal
payments as property owners pay down or prepay their mortgages. As these
payments are received, they must be reinvested when interest rates may be lower
than on the original mortgage security. When interest rates are rising, the
value of fixed-income securities with prepayment features are likely to
decrease as much or more than securities without prepayment features. In
addition, the value of mortgage-related securities with prepayment features may
not increase as much as other fixed-income securities when interest rates fall.

[BEGIN SIDE BAR]

An investment in the Fund isn't a
deposit of The Chase Manhattan
Bank and it isn't insured or
guaranteed by the Federal Deposit
Insurance Corporation or any
other government agency.

[END SIDE BAR]

8
<PAGE>

value of some classes in which the Fund invests may be more volatile.

The value of interest-only and principal-only mortgage backed securities is
more volatile than other types of mortgage-related securities. That's because
they are very sensitive not only to changes in interest rates, but also to the
rate of prepayments. A rapid or unexpected increase in prepayments can
significantly depress the price of interest-only securities, while a rapid or
unexpected decrease could have the same effect on principal-only securities. In
addition, these instruments may be illiquid.

While the principal and payments on certain of the Fund's portfolio securities
may be guaranteed, this does not mean that the market value of the security, or
the value of Fund shares, is guaranteed.

Certain securities which the Fund may hold, such as stripped obligations and
zero coupon securities, are more sensitive to changes in interest rates than
ordinary interest-paying securities.

Some asset-backed securities may have additional risk because they may receive
little or no collateral protection from the underlying assets.

If the interest rate on floating and variable rate securities falls, the Fund's
yield may decline and it may lose the opportunity for capital appreciation.

Dollar rolls, forward commitments and repurchase agreements involve some risk
to the Fund if the other party does not live up to its part of the agreement.

If the Fund temporarily departs from its investment policies to defend its
assets, it may not achieve its investment objectives.[logo]

9
<PAGE>

CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND

The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund's Premier Class shares has varied from year to year.
This provides some indication of the risks of investing in the Fund. The table
shows the average annual return over the past year, five years and since
inception. It compares that performance to the Lehman 1-3 Year Government Index
and the Lehman Intermediate Government Index, widely recognized market
benchmarks, and the Lipper Short-Intermediate Term U.S. Government Funds Index.

The Lipper Short-Intermediate Term U.S. Government Funds Index represents the
performance of the 30 largest short-intermediate term debt funds.

YEAR-BY-YEAR RETURNS
Past performance does not predict how this
Fund will perform in the future.

[BAR CHART PLOT POINTS]

1994 -1.05%
1995 12.01%
1996 2.68%
1997 6.30%
1998 7.35%
1999 0.72%

[END PLOT POINTS]

<TABLE>
<S> <C>
-------------------------------------
BEST QUARTER 4.21%
-------------------------------------
3rd quarter, 1998

-------------------------------------
WORST QUARTER -1.35%
-------------------------------------
1st quarter, 1994
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS
For the periods ending December 31, 1999

<TABLE>
<CAPTION>
SINCE
PAST 1 PAST 5 INCEPTION
YEAR YEARS (4/1/93)
<S> <C> <C> <C>
-------------------------------------------------------------------
PREMIER CLASS SHARES 0.72% 5.75% 4.43%
-------------------------------------------------------------------
LEHMAN 1-3 YEAR GOV'T INDEX 2.97% 6.47% 5.31%
-------------------------------------------------------------------
LEHMAN INT GOV'T INDEX 0.49% 6.93% 5.62%
-------------------------------------------------------------------
LIPPER SHORT-INT TERM US GOV'T
FUNDS INDEX 0.82% 6.04% 4.73%
-------------------------------------------------------------------
</TABLE>

10
<PAGE>

CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------
PREMIER CLASS SHARES 0.50% NONE 0.65%# 1.15%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.10% and the total
annual fund operating expenses for Premier Class shares are expected not to
exceed 0.75%. That's because The Chase Manhattan Bank (Chase) and some of the
Fund's other service providers have volunteered not to collect a portion of
their fees and to reimburse others. Chase and these other service providers may
end this arrangement at any time.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
<S> <C> <C> <C> <C>
---------------------------------------------------------
PREMIER CLASS SHARES $117 $365 $633 $1,398
---------------------------------------------------------
</TABLE>

11
<PAGE>

CHASE U.S. GOVERNMENT SECURITIES FUND

[BEGIN SIDE BAR]

The Fund's objective
The Fund aims to
provide current
income while
emphasizing
preservation of
capital.

[END SIDE BAR]

The Fund's main investment strategy
Under normal market conditions, the Fund will invest at least 70% of its total
assets in debt securities issued or guaranteed by the U.S. Government and its
agencies or authorities, and in repurchase agreements involving these
securities.

When making investment decisions for the Fund, the Fund's adviser considers
many factors in addition to current yield, including preservation of capital,
maturity and yield to maturity. The Fund's adviser will adjust the Fund's
investments in certain securities or types of securities based on its analysis
of changing economic conditions and trends. The Fund's adviser may sell one
security and buy another security of comparable quality and maturity to take
advantage of what it believes to be short-term differences in market values or
yields.

12
<PAGE>

CHASE U.S. GOVERNMENT SECURITIES FUND

[BEGIN SIDE BAR]

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs,
thus lowering performance, and increase your taxable dividends.

[END SIDE BAR]

The Fund may enter into "dollar rolls" in which the Fund sells mortgage-backed
securities and at the same time contracts to buy back very similar securities
on a future date. It may also buy asset-backed securities. These receive a
stream of income from a particular asset, such as credit card receivables.

To temporarily defend its assets during unusual market conditions, the Fund may
invest any portion of its assets in high quality money market instruments and
repurchase agreements.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

13
<PAGE>

CHASE U.S. GOVERNMENT SECURITIES FUND
The main investment risks

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some specific risks of investing in U.S.
Government Securities Fund.

When the Fund invests in mortgage-related securities, the value of the Fund
could change more often and to a greater degree than if it did not buy
mortgage-backed securities. That's because the prepayment features on some
mortgage-related securities make them more sensitive to interest rate changes.
Mortgage-related securities are subject to scheduled and unscheduled principal
payments as property owners pay down or prepay their mortgages. As these
payments are received, they must be reinvested when interest rates may be lower
than on the original mortgage security. When interest rates are rising, the
value of fixed-income securities with prepayment features are likely to
decrease as much or more than securities without prepayment features. In
addition, the value of mortgage-related securities with prepayment features may
not increase as much as other fixed-income securities when interest rates fall.

[BEGIN SIDE BAR]

An investment in the Fund isn't a
deposit of The Chase Manhattan
Bank and it isn't insured or
guaranteed by the Federal Deposit
Insurance Corporation or any
other government agency.

[END SIDE BAR]

14
<PAGE>

value of some classes in which the Fund invests may be more volatile.

The value of interest-only and principal-only mortgage-backed securities is
more volatile than other types of mortgage-related securities. That's because
they are very sensitive not only to changes in interest rates, but also to the
rate of prepayments. A rapid or unexpected increase in prepayments can
significantly depress the price of interest-only securities, while a rapid or
unexpected decrease could have the same effect on principal-only securities. In
addition, these instruments may be illiquid.

While the principal and payments on certain of the Fund's portfolio securities
may be guaranteed, this does not mean that the market value of the security, or
the value of Fund shares, is guaranteed.

Certain securities which the Fund may hold, such as stripped obligations and
zero coupon securities, are more sensitive to changes in interest rates than
ordinary interest-paying securities.

Some asset-backed securities may have additional risk because they may receive
little or no collateral protection from the underlying assets.

If the interest rate on floating and variable rate securities falls, the Fund's
yield may decline and it may lose the opportunity for capital appreciation.

Dollar rolls, forward commitments and repurchase agreements involve some risk
to the Fund if the other party does not live up to its part of the agreement.

If the Fund temporarily departs from its investment policies to defend its
assets, it may not achieve its investment objectives.[logo]

15
<PAGE>

CHASE U.S. GOVERNMENT SECURITIES FUND
The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund's Premier Class shares has varied from year to year.
This provides some indication of the risks of investing in the Fund. The table
shows the average annual return over the past year, five years and since
inception. It compares that performance to the Lehman Government Index, a
widely recognized market benchmark, and the Lipper General U.S. Government
Funds Index.

The Lehman Government Index consists of the Lehman Treasury Bond Index and the
Lehman Agency Bond Index. It includes Treasury bonds and fixed income
securities issued by the U.S. Government and its agencies.

The Lipper General U.S. Government Funds Index represents the performance of
the 30 largest U.S. government securities funds.

YEAR-BY-YEAR RETURNS
Past performance does not predict how this
Fund will perform in the future.

[BAR CHART PLOT POINTS]

1994 -8.39%
1995 30.11%
1996 -1.89%
1997 9.55%
1998 9.28%
1999 -2.55%

[END PLOT POINTS]

<TABLE>
<S> <C>
--------------------------------------
BEST QUARTER 10.36%
--------------------------------------
2nd quarter, 1995

--------------------------------------
WORST QUARTER -6.79%
--------------------------------------
1st quarter, 1996
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS
For the periods ending December 31, 1999

<TABLE>
<CAPTION>
SINCE
PAST 1 PAST 5 INCEPTION
YEAR YEARS (4/1/93)
<S> <C> <C> <C>
------------------------------------------------------------------
PREMIER CLASS SHARES -2.55% 8.28% 6.07%
------------------------------------------------------------------
LEHMAN GOVERNMENT INDEX -2.23% 7.44% 5.81%
------------------------------------------------------------------
LIPPER GENERAL US GOV'T FUNDS
INDEX -2.66% 6.47% 4.70%
------------------------------------------------------------------
</TABLE>

16
<PAGE>

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------
PREMIER CLASS SHARES 0.50% NONE 1.40%# 1.90%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.00%, other expenses for
Premier Class shares are expected to be 0.75%, and total annual fund operating
expenses for Premier Class shares are expected not to exceed 0.75%. That's
because The Chase Manhattan Bank (Chase) and some of the Fund's other service
providers have volunteered not to collect a portion of their fees and to
reimburse others. Chase and these other service providers may end this
arrangement at any time.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
<S> <C> <C> <C> <C>
-----------------------------------------------------------
PREMIER CLASS SHARES $193 $597 $1,026 $2,222
-----------------------------------------------------------
</TABLE>

17
<PAGE>

CHASE INTERMEDIATE TERM BOND FUND

[START SIDE BAR]

The Fund's objective
The Fund aims to
invest in securities
that earn current
income while also
considering stability
of principal.

[END SIDE BAR]

The Fund's main investment strategy

The Fund seeks current income by investing primarily in fixed income
securities. Under normal market conditions, the Fund will invest at least 70%
of its total assets in bonds and notes of domestic and foreign issuers, U.S.
Government securities and mortgage-related securities.

The average portfolio maturity of the Fund is between three and 10 years. When
the Fund purchases fixed income securities, they usually will have a maturity
of greater than one year. The Fund's adviser will adjust the maturity based on
its outlook for the economy.

When making investment decisions for the Fund, the Fund's adviser considers
many factors in addition to current yield, including preservation of capital,
maturity and yield to maturity. The Fund's adviser will adjust the Fund's
investments in certain securities or types of securities based on its analysis
of changing economic conditions and trends. The Fund's adviser may sell one
security and buy another security of comparable quality and maturity to take
advantage of what it believes to be

18
<PAGE>

short-term differences in market values or yields.

The Fund may enter into "dollar rolls" in which the Fund sells mortgage-backed
securities and at the same time contracts to buy back very similar securities
on a future date. It may also buy asset-backed securities. These receive a
stream of income from a particular asset, such as credit card receivables.

To temporarily defend its assets during unusual market conditions, the Fund may
invest any portion of its assets in high quality money market instruments and
repurchase agreements.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

[BEGIN SIDE BAR]

FREQUENCY OF TRADING
The Fund may trade securities
actively, which could increase
transaction costs, thus lowering
performance, and increase your
taxable dividends.

[END SIDE BAR]

19
<PAGE>

CHASE INTERMEDIATE TERM BOND FUND

The main investment risks

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some specific risks of investing in the
Intermediate Term Bond Fund.

When the Fund invests in mortgage-related securities, the value of the Fund
could change more often and to a greater degree than if it did not buy
mortgage-backed securities. That's because the prepayment features on some
mortgage-related securities make them more sensitive to interest rate changes.
Mortgage-related securities are subject to scheduled and unscheduled principal
payments as property owners pay down or prepay their mortgages. As these
payments are received, they must be reinvested when interest rates may be lower
than on the original mortgage security. When interest rates are rising, the
value of fixed-income securities with prepayment features are likely to
decrease as much or more than securities without prepayment features. In
addition, the value of mortgage-related securities with prepayment features may
not increase as much as other fixed-income securities when interest rates fall.

[BEGIN SIDE BAR]

An investment in the Fund isn't a
deposit of The Chase Manhattan Bank
and it isn't insured or guaranteed
by the Federal Deposit
Insurance Corporation or any
other government agency.

[END SIDE BAR]

20
<PAGE>

value of some classes in which the Fund invests are more volatile.

Certain securities which the Fund may hold, such as stripped obligations and
zero coupon securities, are more sensitive to changes in interest rates than
ordinary interest-paying securities.

Investments in foreign securities may be riskier than investments in the U.S.
They may be affected by political, social and economic instability. Some
securities may be harder to trade without incurring a loss and may be difficult
to convert into cash. There may be less public information available, differing
settlement procedures, or regulations and standards that don't match U.S.
standards. Some countries may nationalize or expropriate assets or impose
exchange controls. If the Fund were to invest in a security which is not
denominated in U.S. dollars, it also would be subject to currency exchange
risk. These risks increase when investing in issuers located in developing
countries.

The Fund's performance will depend on the credit quality of its investments.
Securities which are rated Baa by Moody's or BBB by S&P may have fewer
protective provisions and are generally more risky than higher rated
securities. The issuer may have trouble making principal and interest payments
when difficult economic conditions exist.

Some asset-backed securities may have additional risk because they may receive
little or no collateral protection from the underlying assets.

If the interest rate on floating and variable rate securities falls, the Fund's
yield may decline and it may lose the opportunity for capital appreciation.

Dollar rolls, forward commitments and repurchase agreements involve some risk
to the Fund if the other party does not live up to its part of the agreement.

If the Fund departs from its investment policies during temporary defensive
periods, it may not achieve its investment objective.[logo]

21
<PAGE>

CHASE INTERMEDIATE TERM BOND FUND

The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund's Premier Class shares has varied from year to year.
This provides some indication of the risk of investing in the Fund. The table
shows the average annual return over the past year, five years and since
inception. It compares that performance to the Lehman Intermediate
Government/Corporate Index and the Lehman Aggregate Index, widely recognized
market benchmarks, and the Lipper Intermediate Grade Debt Funds Index.

The Lehman Brothers Intermediate Government/Corporate Index consists of U.S.
Treasury and agency securities, corporate and Yankee bonds with maturities of
1-10 years. The Lehman Aggregate Index consists of the Lehman Brothers
Government/Corporate Index U.S. Treasury and agency securities, corporate bonds
and mortgage-backed securities with maturities of 1-30 years.

The Lipper Intermediate Grade Debt Funds Index represents the performance of
the 30 largest intermediate investment grade debt funds.

YEAR-BY-YEAR RETURNS
Past performance does not predict how this
Fund will perform in the future.

[BAR CHART PLOT POINTS]

1995 16.79%
1996 1.86%
1997 7.26%
1998 7.63%
1999 -1.11%

[END PLOT POINTS]

<TABLE>
<S> <C>
-------------------------------------
BEST QUARTER 5.99%
-------------------------------------
2nd quarter, 1995

-------------------------------------
WORST QUARTER -2.15%
-------------------------------------
1st quarter, 1996
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS
For the periods ending December 31, 1999

<TABLE>
<CAPTION>
SINCE
PAST 1 PAST 5 INCEPTION
YEAR YEARS (10/3/94)
<S> <C> <C> <C>
-------------------------------------------------------------------------
PREMIER CLASS SHARES -1.11% 6.32% 6.00%
-------------------------------------------------------------------------
LEHMAN INTERMEDIATE GOV'T/CORP INDEX -0.39% 7.10% 6.73%
-------------------------------------------------------------------------
LEHMAN AGGREGATE INDEX -0.82% 7.73% 7.43%
-------------------------------------------------------------------------
LIPPER INT GRADE DEBT FUNDS INDEX -0.98% 7.08% 6.75%
-------------------------------------------------------------------------
</TABLE>

22
<PAGE>

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------
PREMIER CLASS SHARES 0.50% NONE 0.50%# 1.00%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.25% and the total
annual fund operating expenses for Premier Class shares are expected not to
exceed 0.75%. That's because The Chase Manhattan Bank (Chase) and some of the
Fund's other service providers have volunteered not to collect a portion of
their fees and to reimburse others. Chase and these other service providers may
end this arrangement at any time.

The table does not reflect charges or credits you might incur if you invest
through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
<S> <C> <C> <C> <C>
---------------------------------------------------------
PREMIER CLASS SHARES $102 $318 $552 $1,225
---------------------------------------------------------
</TABLE>

<PAGE>

CHASE INCOME FUND

[BEGIN SIDE BAR]

The Fund's objective
The Fund aims to
invest in securities
that earn a high
level of current
income, while also
considering safety
of principal.

[END SIDE BAR]

The Fund's main investment strategy
The Fund seeks a high level of current income by investing in fixed income
securities. Under normal market conditions, the Fund will invest at least 70%
of its total assets in bonds and notes of domestic and foreign issuers, U.S.
Government securities and mortgage-related securities.

The average portfolio maturity of the Fund is between five and 15 years. When
the Fund purchases fixed income securities, they usually will have a maturity
of greater than one year. The Fund's adviser will adjust the maturity based on
its outlook for the economy.

When making investment decisions for the Fund, the Fund's adviser considers
many factors in addition to current yield, including preservation of capital,
maturity and yield to maturity. The Fund's adviser will adjust the Fund's
investments in certain securities or types of securities based on its analysis
of changing economic conditions and trends. The Fund's adviser may sell one
security and buy another security of comparable quality and maturity to take
advantage of what it believes to be

24
<PAGE>

short-term differences in market values or yields.

The Fund may enter into "dollar rolls" in which the Fund sells mortgage-backed
securities and at the same time contracts to buy back very similar securities
on a future date. It may also buy asset-backed securities. These receive a
stream of income from a particular asset, such as credit card receivables.

To temporarily defend its assets during unusual market conditions, the Fund may
invest any portion of its assets in high quality money market instruments and
repurchase agreements.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

[BEGIN SIDE BAR]

FREQUENCY OF TRADING
The Fund may trade securities
actively, which could increase
transaction costs, thus lowering
performance, and increase your
taxable dividends.

[END SIDE BAR]

25
<PAGE>

CHASE INCOME FUND

The main investment risks

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some specific risks of investing in the Income
Fund.

When the Fund invests in mortgage-related securities, the value of the Fund
could change more often and to a greater degree than if it did not buy
mortgage-backed securities. That's because the prepayment features on some
mortgage-related securities make them more sensitive to interest rate changes.
Mortgage-related securities are subject to scheduled and unscheduled principal
payments as property owners pay down or prepay their mortgages. As these
payments are received, they must be reinvested when interest rates may be lower
than on the original mortgage security. When interest rates are rising, the
value of fixed-income securities with prepayment features are likely to
decrease as much or more than securities without prepayment features. In
addition, the value of mortgage-related securities with prepayment features may
not increase as much as other fixed-income securities when interest rates fall.

[BEGIN SIDE BAR]

An investment in the Fund isn't a
deposit of The Chase Manhattan
Bank and it isn't insured or
guaranteed by the Federal Deposit
Insurance Corporation or any
other government agency.

[END SIDE BAR]

26
<PAGE>

Certain securities which the Fund may hold, such as stripped obligations and
zero coupon securities, are more sensitive to changes in interest rates than
ordinary interest-paying securities.

Investments in foreign securities may be riskier than investments in the U.S.
They may be affected by political, social and economic instability. Some
securities may be harder to trade without incurring a loss and may be difficult
to convert into cash. There may be less public information available, differing
settlement procedures, or regulations and standards that don't match U.S.
standards. Some countries may nationalize or expropriate assets or impose
exchange controls. If the Fund were to invest in a security which is not
denominated in U.S. dollars, it also would be subject to currency exchange
risk. These risks increase when investing in issuers located in developing
countries.

The Fund's performance will depend on the credit quality of its investments.
Securities which are rated Baa by Moody's or BBB by S&P may have fewer
protective provisions and are generally more risky than higher rated
securities. The issuer may have trouble making principal and interest payments
when difficult economic conditions exist.

Some asset-backed securities may have additional risk because they may receive
little or no collateral protection from the underlying assets.

If the interest rate on floating and variable rate securities falls, the Fund's
yield may decline and it may lose the opportunity for capital appreciation.

Dollar rolls, forward commitments and repurchase agreements involve some risk
to the Fund if the other party does not live up to its part of the agreement.

If the Fund departs from its investment policies during temporary defensive
periods, it may not achieve its investment objective.[logo]

27
<PAGE>

CHASE INCOME FUND

The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund's Premier Class shares has varied from year to year.
This provides some indication of the risks of investing in the Fund. The table
shows the average annual return over the past year, five years and ten years.
It compares that performance to the Lehman Government/Corporate Index, a widely
recognized market benchmark, and the Lipper Corporate Debt A Rated Funds Index.

The Lehman Government/Corporate Index is an unmanaged index that consists of
U.S. Treasury and agency securities, and corporate and Yankee bonds with
maturities of 1-30 years.

The Lipper Corporate Debt A Rated Funds Index represents the performance of the
largest 30 A rated corporate debt funds.

YEAR-BY-YEAR RETURNS
Past performance does not predict how
this Fund will perform in the future.

[BAR CHART PLOT POINTS]

1990 6.60%
1991 13.73%
1992 5.13%
1993 10.18%
1994 -4.47%
1995 18.38%
1996 1.91%
1997 8.73%
1998 9.47%
1999 -2.78%

[END PLOT POINTS]

<TABLE>
<S> <C>
-------------------------------------
BEST QUARTER 5.69%
-------------------------------------
3rd quarter, 1991

-------------------------------------
WORST QUARTER -3.38%
-------------------------------------
1st quarter, 1994
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS
For the periods ending December 31, 1999

<TABLE>
<CAPTION>
PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
<S> <C> <C> <C>
------------------------------------------------------------------
PREMIER CLASS SHARES -2.78% 6.89% 6.47%
------------------------------------------------------------------
LEHMAN GOV'T/CORP INDEX -2.15% 7.61% 7.65%
------------------------------------------------------------------
LIPPER CORP DEBT A RATED FUNDS
INDEX -2.04% 7.25% 7.36%
------------------------------------------------------------------
</TABLE>

28
<PAGE>

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------
PREMIER CLASS SHARES 0.50% NONE 0.45%# 0.95%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.30% and the total
annual fund operating expenses for Premier Class shares are expected not to
exceed 0.75%. That's because The Chase Manhattan Bank (Chase) and some of the
Fund's other service providers have volunteered not to collect a portion of
their fees and to reimburse others. Chase and these other service providers may
end this arrangement at any time.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
<S> <C> <C> <C> <C>
-------------------------------------------------------
PREMIER CLASS SHARES $97 $303 $525 $1,166
-------------------------------------------------------
</TABLE>

29
<PAGE>

CHASE BALANCED FUND

[BEGIN SIDE BAR]

The Fund's objective
The Fund aims to
provide a balance of
current income and
growth of capital.

[END SIDE BAR]

The Fund's main investment strategy

The Fund seeks a balance of current income and growth by using the following
strategies:

o an active equity management style that focuses on strong earnings momentum
and profitability within the universe of growth-oriented stocks, and

o an active fixed income management style that focuses primarily on domestic
fixed income securities.

The Fund's adviser may adjust the portion of the Fund's assets that are
invested in equity and fixed income securities depending on its analysis of
general market and economic conditions and trends, yields, interest rates and
changes in monetary policies.

The Fund seeks growth of capital by normally investing 30% to 70% of its total
assets in equity securities. The Fund invests primarily in companies with one
or more of the following characteristics:

o a projected rate of earnings growth that's equal to or greater than the
equity markets

o a return on assets and equity that's equal to or greater than the equity
markets

o above-average price/earnings ratios

o below-average dividend yield

o above-average market volatility

30
<PAGE>

o a market capitalization of more than $500 million.

Market capitalization is the total market value of a company's shares. Equity
securities include common stocks and preferred stocks and securities that are
convertible into common stocks.

There is no restriction on the maturity of the Fund's debt portfolio or on any
individual security in the portfolio. The Fund's advisers will adjust the
maturity based on its outlook for the economy.

The Fund's equity holdings may also include real estate investment trusts
(REITs), which are pools of investments primarily in income-producing real
estate or loans related to real estate.

The Fund may invest in mortgage-related securities issued by governmental
entities and private issuers. These may include invest-

31
<PAGE>

CHASE BALANCED FUND

ments in collateralized mortgage obligations and principal-only and
interest-only stripped mortgage-backed securities.

The Fund may enter into "dollar rolls," in which the Fund sells mortgage-backed
securities and at the same time contracts to buy back very similar securities
on a future date. It may also buy asset-backed securities. These receive a
stream of income from a particular asset, such as credit card receivables.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

[BEGIN SIDE BAR]

FREQUENCY OF TRADING
The Fund may trade securities
actively, which could increase
transaction costs, thus lowering
performance, and increase your
taxable dividends.

[END SIDE BAR]

32
<PAGE>

The main investment risks

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some of the specific risks of investing in
Balanced Fund.

The value of shares of the Fund will be influenced by conditions in stock
markets as well as the performance of the companies selected for the Fund's
portfolio.

Investments in foreign securities may be riskier than investments in the U.S.
Because foreign securities are usually denominated in foreign currencies, the
value of the Fund's portfolio may be influenced by currency exchange rates and
exchange control regulations. Foreign securities may be affected by political,
social and economic instability. Some securities may be harder to trade without
incurring a loss and may be difficult to convert into cash. There may be less
public information available, differing settlement procedures, or regulations
and standards that don't match U.S. standards. Some countries may nationalize
or expropriate assets or impose exchange controls. These risks increase when
investing in issuers located in developing countries.

Unsponsored depositary receipts may not provide as much information about the
underlying issuer and may not carry the same voting privileges as sponsored
depositary receipts.

In early 1999, the European Monetary Union implemented a new currency called
the

33
<PAGE>

CHASE BALANCED FUND

When the Fund invests in mortgage-related securities, the value of the Fund
could change more often and to a greater degree than if it did not buy
mortgage-related securities. That's because the prepayment features on some
mortgage-related securities make them more sensitive to interest rate changes.
Mortgage related securities are subject to scheduled and unscheduled principal
payments as property owners pay down or prepay their mortgages. As these
payments are received, they must be reinvested when interest rates may be
higher or lower than on the original mortgage security. When interest rates are
rising, the value of fixed-income securities with prepayment features are
likely to decrease as much or more than securities without prepayment features.
In addition, while the value of fixed-income securities will generally increase
when interest rates decline, the value of mortgage-related securities with
prepayment features may not increase as much as securities without prepayment
features.

[BEGIN SIDE BAR]

An investment in the Fund isn't a
deposit of The Chase Manhattan
Bank and it isn't insured or
guaranteed by the Federal Deposit
Insurance Corporation or any
other government agency.

[END SIDE BAR]
34
<PAGE>

result, the value of some classes in which the Fund invests may be more
volatile.

The value of interest-only and principal-only mortgage backed securities are
more volatile than other types of mortgage-related securities. That's because
they are very sensitive not only to changes in interest rates, but also to the
rate of prepayments. A rapid or unexpected increase in prepayments can
significantly depress the price of interest-only securities, while a rapid or
unexpected decrease could have the same effect on principal-only securities. In
addition, these instruments may be illiquid.

Certain securities which the Fund may hold, such as stripped obligations and
zero coupon securities, are more sensitive to changes in interest rates than
ordinary interest-paying securities.

Some asset-backed securities may have additional risk because they may receive
little or no collateral protection from the underlying assets.

Because the interest rate changes on floating and variable rate securities, the
Fund's yield may decline and it may lose the opportunity for capital
appreciation when interest rates decline.

Dollar rolls, forward commitments and repurchase agreements involve some risk
to the Fund if the other party does not live up to its obligations under the
agreement.

The value of REITs will depend on the value of the underlying properties or the
underlying loans or interest. The value of REITs may decline when interest
rates rise.

Derivatives may be more risky than other types of investments because they may
respond more to changes in economic conditions than other types of investments.

If they are used for non-hedging purposes, they could cause losses that exceed
the Fund's original investment.[logo]

35
<PAGE>

The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund's Premier Class shares has varied from year to year.
This provides some indication of the risks of investing in the Fund. The table
shows the average annual return over the past year, five years and ten years.
It compares that performance to the S&P 500 Index and Lehman
Government/Corporate Index, widely recognized market benchmarks, and the Lipper
Balanced Funds Index.

The S&P 500 Index is an unmanaged, broad-based index of 500 companies and is
generally considered to represent the U.S. market. The Lehman Government/
Corporate Index is an unmanaged index that consists of the Lehman government
and corporate bond indices, including U.S. Treasury and agency securities, and
corporate and Yankee bonds.

The Lipper Balanced Funds Index represents the performance of the 30 largest
balanced funds.

YEAR-BY-YEAR RETURNS
Past performance does not predict how
this Fund will perform in the future.

[BAR CHART PLOT POINTS]

1990 1.34%
1991 24.16%
1992 5.32%
1993 6.01%
1994 -2.27%
1995 23.83%
1996 11.31%
1997 23.67%
1998 25.15%
1999 14.23%

[END PLOT POINTS]

<TABLE>
<S> <C>
--------------------------------------
BEST QUARTER 13.34%
--------------------------------------
4th quarter, 1998

--------------------------------------
WORST QUARTER -5.37%
--------------------------------------
3rd quarter, 1990
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS
For the periods ending December 31, 1999

<TABLE>
<CAPTION>
PAST PAST PAST
1 YEAR 5 YEARS 10 YEARS
<S> <C> <C> <C>
------------------------------------------------------------------
PREMIER CLASS SHARES 14.23% 19.51% 12.84%
------------------------------------------------------------------
S&P 500 INDEX 21.03% 28.54% 18.19%
------------------------------------------------------------------
LEHMAN GOV'T/CORP INDEX -2.15% 7.61% 7.65%
------------------------------------------------------------------
LIPPER BALANCED FUNDS INDEX 8.98% 16.33% 12.26%
------------------------------------------------------------------
</TABLE>

36
<PAGE>

CHASE BALANCED FUND

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------
PREMIER CLASS SHARES 0.75% NONE 0.35%# 1.10%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.65% and the total
annual fund operating expenses for Premier Class shares are expected not to
exceed 1.00%. That's because The Chase Manhattan Bank (Chase) and some of the
Fund's other service providers have volunteered not to collect a portion of
their fees and to reimburse others. Chase and these other service providers may
end this arrangement at any time.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
<S> <C> <C> <C> <C>
--------------------------------------------------------
PREMIER CLASS SHARES $112 $350 $606 $1,340
--------------------------------------------------------
</TABLE>

37
<PAGE>

CHASE EQUITY INCOME FUND

[BEGIN SIDE BAR]

The Fund's
objective

The Fund aims to
invest in securities
that provide both
capital appreciation
and current income.

[END SIDE BAR]

The Fund's main investment strategy

The Fund seeks capital appreciation by targeting companies with attractive
earnings momentum. It seeks current income by emphasizing companies with above-
average dividend yield and a consistent dividend record. The Fund also
emphasizes securities of companies with below-average market volatility and
price/earnings ratios or a market capitalization of more than $500 million. The
Fund combines growth and value styles of investing.

38
<PAGE>

CHASE EQUITY INCOME FUND

The Fund's equity holdings may also include real estate investment trusts
(REITs), which are pools of investments primarily in income-producing real
estate or loans related to real estate.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

[BEGIN SIDE BAR]

FREQUENCY OF TRADING
The Fund may trade securities
actively, which could increase
transaction costs (and lower
performance) and increase your
taxable dividends.

[END SIDE BAR]

39
<PAGE>

The main investment risks

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some of the specific risks of investing in
Equity Income Fund.

The value of shares of the Fund will be influenced by conditions in stock
markets as well as the performance of the companies selected for the Fund's
portfolio.

Investments in foreign securities may be riskier than investments in the U.S.
Because foreign securities are usually denominated in foreign currencies, the
value of the Fund's portfolio may be influenced by currency exchange rates and
exchange control regulations. Foreign securities may be affected by political,
social and economic instability. Some securities may be harder to trade without
incurring a loss and may be difficult to convert into cash. There may be less
public information available, differing settlement procedures, or regulations
and standards that don't match U.S. standards. Some countries may nationalize
or expropriate assets or impose exchange controls. These risks increase when
investing in issuers located in developing countries.

Unsponsored depositary receipts may not provide as much information about the
underlying issuer and may not carry the same voting privileges as sponsored
depositary receipts.

In early 1999, the European Monetary Union implemented a new currency called
the

40
<PAGE>

CHASE EQUITY INCOME FUND

The market value of convertible securities and debt securities tends to decline
as interest rates increase. Such a drop could be worse if the Fund invests a
large portion of its assets in debt securities with longer maturities. The
value of convertible securities also tends to change whenever the market value
of the underlying common or preferred stock fluctuates.

The value of REITs will depend on the value of the underlying properties or the
underlying loans or interest. The value of REITs may decline when interest
rates rise.

[BEGIN SIDE BAR]

An investment in the Fund isn't a
deposit of The Chase Manhattan
Bank and it isn't insured or
guaranteed by the Federal Deposit
Insurance Corporation or any
other government agency.

[END SIDE BAR]

41
<PAGE>

The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund's Premier Class shares has varied from year to year.
This provides some indication of the risks of investing in the Fund. The table
shows the average annual return over the past year, five years and ten years.
It compares that performance to the S&P 500 Index, a widely recognized market
benchmark, and the Lipper Large Cap Value Funds Index.

The S&P 500 Index is an unmanaged, broad-based index of 500 companies that is
generally considered to represent the U.S. market.

YEAR-BY-YEAR RETURNS
Past performance does not predict how
this Fund will perform in the future.

[BAR CHART PLOT POINTS]

1990 -4.40%
1991 22.10%
1992 5.61%
1993 12.34%
1994 -3.37%
1995 33.72%
1996 17.87%
1997 31.05%
1998 26.20%
1999 13.06%

[END PLOT POINTS]

<TABLE>
<S> <C>
-------------------------------------
BEST QUARTER 18.89%
-------------------------------------
4th quarter, 1998

-------------------------------------
WORST QUARTER -10.93%
-------------------------------------
3rd quarter, 1990
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS
For the periods ending December 31, 1999

<TABLE>
<CAPTION>
PAST PAST PAST
1 YEAR 5 YEARS 10 YEARS
<S> <C> <C> <C>
-----------------------------------------------------------------------
PREMIER CLASS SHARES 13.06% 24.13% 14.70%
-----------------------------------------------------------------------
S&P 500 INDEX 21.03% 28.54% 18.19%
-----------------------------------------------------------------------
LIPPER LARGE CAP VALUE FUNDS INDEX 10.78% 22.11% 15.42%
-----------------------------------------------------------------------
</TABLE>

42
<PAGE>

CHASE EQUITY INCOME FUND

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------
PREMIER CLASS SHARES 0.75% NONE 0.30%# 1.05%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.70% and the total
annual fund operating expenses for Premier Class shares are expected not to
exceed 1.00%. That's because The Chase Manhattan Bank (Chase) and some of the
Fund's other service providers have volunteered not to collect a portion of
their fees and to reimburse others. Chase and these other service providers may
end this arrangement at any time.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
<S> <C> <C> <C> <C>
--------------------------------------------------------
PREMIER CLASS SHARES $107 $334 $579 $1,283
--------------------------------------------------------
</TABLE>

43
<PAGE>

CHASE CORE EQUITY FUND

[BEGIN SIDE BAR]

The Fund's
objective

The Fund aims to
maximize total
investment return
with an emphasis on
long-term capital
appreciation and
current income while
taking reasonable
risk.

[END SIDE BAR]

The Fund's main investment strategy

The Fund uses an active equity management style which focuses on strong
earnings momentum and profitability within the universe of S&P 500 stocks. The
Fund normally invests at least 70% of its total assets in equity securities.

44
<PAGE>

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

[BEGIN SIDE BAR]

FREQUENCY OF TRADING
The Fund may trade securities
actively, which could increase
transaction costs (and lower
performance) and increase your
taxable dividends.

[END SIDE BAR]

45
<PAGE>

The main investment risks

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some of the specific risks of investing in
Core Equity Fund.

The value of shares of the Fund will be influenced by conditions in stock
markets as well as the performance of the companies selected for the Fund's
portfolio.

Investments in foreign securities may be riskier than investments in the U.S.
Because foreign securities are usually denominated in foreign currencies, the
value of the Fund's portfolio may be influenced by currency exchange rates and
exchange control regulations. Foreign securities may be affected by political,
social and economic instability. Some securities may be harder to trade without
incurring a loss and may be difficult to convert into cash. There may be less
public information available, differing settlement procedures, or regulations
and standards that don't match U.S. standards. Some countries may nationalize
or expropriate assets or impose exchange controls. These risks increase when
investing in issuers located in developing countries.

Unsponsored depositary receipts may not provide as much information about the
underlying issuer and may not carry the same voting privileges as sponsored
depositary receipts.

In early 1999, the European Monetary Union implemented a new currency called
the "euro." It is possible that the euro could increase volatility in financial
markets, which could have a negative effect on the strength and value of the
U.S. dollar and, as a result, the value of shares of the Fund.

The market value of convertible securities and debt securities tends to decline
as interest rates increase. Such a drop could be worse if the

46
<PAGE>

CHASE CORE EQUITY FUND

Fund invests a larger portion of its assets in debt securities with longer
maturities. The value of convertible securities also tends to change whenever
the market value of the underlying common or preferred stock fluctuates.

[BEGIN SIDE BAR]

An investment in the Fund isn't a
deposit of The Chase Manhattan
Bank and it isn't insured or
guaranteed by the Federal Deposit
Insurance Corporation or any
other government agency.

[END SIDE BAR]

47
<PAGE>

The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund's Premier Class shares has varied from year to year.
This provides some indication of the risks of investing in the Fund. The table
shows the average annual return over the past year, five years and since
inception. It compares that performance to the S&P 500 Index, a widely
recognized market benchmark, and the Lipper Large Cap Core Funds Index.

The S&P 500 Index is an unmanaged, broad-based index of 500 companies and is
generally considered to represent the U.S. market.

The Lipper Large Cap Core Funds Index consists of funds that invest in both
growth and value stocks.

YEAR-BY-YEAR RETURNS
Past performance does not predict how
this Fund will perform in the future.

[BAR CHART PLOT POINTS]

1994 -4.03%
1995 25.53%
1996 22.54%
1997 33.33%
1998 30.95%
1999 23.89%

[END PLOT POINTS]

<TABLE>
<S> <C>
-------------------------------------
BEST QUARTER 22.97%
-------------------------------------
4th quarter, 1998

-------------------------------------
WORST QUARTER -9.55%
-------------------------------------
3rd quarter, 1998
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS
For the periods ending December 31, 1999

<TABLE>
<CAPTION>
SINCE
PAST PAST INCEPTION
1 YEAR 5 YEARS (4/1/93)
<S> <C> <C> <C>
------------------------------------------------------------------------
PREMIER CLASS SHARES 23.89% 27.18% 20.11%
------------------------------------------------------------------------
S&P 500 INDEX 21.03% 28.54% 19.01%
------------------------------------------------------------------------
LIPPER LARGE CAP CORE FUNDS INDEX 19.35% 25.32% 19.18%
------------------------------------------------------------------------
</TABLE>

48
<PAGE>

CHASE CORE EQUITY FUND

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT DISTRIBUTION OTHER FUND OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------
PREMIER CLASS SHARES 0.75% NONE 0.30%# 1.05%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as shown
above.

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
<S> <C> <C> <C> <C>
---------------------------------------------------------
PREMIER CLASS SHARES $107 $334 $579 $1,283
---------------------------------------------------------
</TABLE>

49
<PAGE>

CHASE EQUITY GROWTH FUND

[BEGIN SIDE BAR]

The Fund's
objective

The Fund aims to
provide capital
appreciation.
Producing current
income is a
secondary objective.

[END SIDE BAR]

Investment strategy

The Fund seeks to achieve its objective by investing all of its assets in
Equity Growth Portfolio, an open-end investment company which has identical
investment objectives and policies as the Fund. As a result, the strategies and
risk outlined below apply to Equity Growth Portfolio as well as the Fund.

The Fund uses an active equity management style which focuses on strong
earnings momentum and profitability within the universe of growth-oriented
stocks. The Fund normally invests at least 70% of its total assets in equity
securities.

The Fund seeks capital appreciation by emphasizing the growth sectors of the
economy. It looks for companies with one or more of the following
characteristics:

o a projected earnings growth rate that's greater than or equal to the equity
markets in general

o a return on assets and return on equity equal to or greater than the equity
markets

o above market average price-earnings ratios

o below-average dividend yield

o above-average market volatility

o a market capitalization of more than $500 million.

The Fund focuses on companies with strong earnings and high levels of

50
<PAGE>

profitability as well as positive industry or company characteristics.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

[BEGIN SIDE BAR]

FREQUENCY OF TRADING
The Fund may trade securities
actively, which could increase
transaction costs (and thus lower
performance) and increase your
taxable dividends.

[END SIDE BAR]

51
<PAGE>

The main investment risks

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some of the specific risks of investing in
Equity Growth Fund.

The value of shares of the Fund will be influenced by conditions in stock
markets as well as the performance of the companies selected for the Fund's
portfolio.

Investments in foreign securities may be riskier than investments in the U.S.
Because foreign securities are usually denominated in foreign currencies, the
value of the Fund's portfolio may be influenced by currency exchange rates and
exchange control regulations. Foreign securities may be affected by political,
social and economic instability. Some securities may be harder to trade without
incurring a loss and may be difficult to convert into cash. There may be less
public information available, differing settlement procedures, or regulations
and standards that don't match U.S. standards. Some countries may nationalize
or expropriate assets or impose exchange controls. These risks increase when
investing in issuers located in developing countries.

Unsponsored depositary receipts may not provide as much information about the
underlying issuer and may not carry the same voting privileges as sponsored
depositary receipts.

In early 1999, the European Monetary Union implemented a new currency called
the

52
<PAGE>

[BEGIN SIDE BAR]

An investment in the Fund isn't a
deposit of The Chase Manhattan
Bank and it isn't insured or
guaranteed by the Federal Deposit
Insurance Corporation or any
other government agency.
[END SIDE BAR]

53
<PAGE>

The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund's Premier Class shares has varied from year to year.
This provides some indication of the risks of investing in the Fund. The table
shows the average annual return over the past year, five years and ten years.
It compares that performance to the S&P/Barra Growth Index, a widely recognized
market benchmark, and the Lipper Large Cap Growth Funds Index.

The S&P/Barra Growth Index includes S&P 500 Index securities that have high
price-to-book ratios, low dividend yields and high price/earnings ratios. It's
a market-weighted index, which means each stock affects the index in proportion
to its market value.

YEAR-BY-YEAR RETURNS
Past performance does not predict how
this Fund will perform in the future.

[BAR CHART PLOT POINTS]

1990 -1.45%
1991 31.69%
1992 6.43%
1993 2.48%
1994 -0.90%
1995 25.78%
1996 20.52%
1997 37.20%
1998 41.38%
1999 31.85%

[END PLOT POINTS]

<TABLE>
<S> <C>
--------------------------------------
BEST QUARTER 27.40%
--------------------------------------
4th quarter, 1998

--------------------------------------
WORST QUARTER -15.53%
--------------------------------------
3rd quarter, 1990
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS
For the periods ending December 31, 1999

<TABLE>
<CAPTION>
PAST PAST PAST
1 YEAR 5 YEARS 10 YEARS
<S> <C> <C> <C>
------------------------------------------------------------------------
PREMIER CLASS SHARES 31.85% 31.14% 18.45%
------------------------------------------------------------------------
S&P/BARRA GROWTH INDEX 28.25% 33.61% 20.59%
------------------------------------------------------------------------
LIPPER LARGE CAP GROWTH FUNDS INDEX 34.82% 30.73% 19.70%
------------------------------------------------------------------------
</TABLE>

54
<PAGE>

CHASE EQUITY GROWTH FUND

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
INVESTMENT TOTAL ANNUAL
ADVISORY DISTRIBUTION OTHER FUND OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------
PREMIER CLASS SHARE 0.75% NONE 0.28%# 1.03%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.72% and the total
annual fund operating expenses for Premier Class shares are expected not to
exceed 1.00%. That's because The Chase Manhattan Bank (Chase) and some of the
Fund's other service providers have volunteered not to collect a portion of
their fees and to reimburse others. Chase and these other service providers may
end this arrangement at any time.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

<TABLE>
<CAPTION>
NUMBER OF YEARS 1 3 5 10
<S> <C> <C> <C> <C>
--------------------------------------------------------
PREMIER CLASS SHARES $105 $328 $569 $1,259
--------------------------------------------------------
</TABLE>

55
<PAGE>

CHASE SMALL CAPITALIZATION FUND

[BEGIN SIDE BAR]

The Fund's
objective
The Fund aims to
provide capital
appreciation.

[END SIDE BAR]

The Fund's main investment strategy

The Fund may invest up to 30% of its total assets in foreign securities,
including Depositary Receipts. Its equity investments may include convertible

56
<PAGE>

CHASE SMALL CAPITALIZATION FUND

securities, which generally pay interest or dividends and which can be
converted into common or preferred stock.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.[logo]

[BEGIN SIDE BAR]

FREQUENCY OF TRADING
The Fund may trade securities
actively, which could increase
transaction costs (and lower
performance) and increase your
taxable dividends.

[END SIDE BAR]

57
<PAGE>

The main investment risks

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some of the specific risks of investing in
Small Capitalization Fund.

The value of shares of the Fund will be influenced by conditions in stock
markets as well as the performance of the companies selected for the Fund's
portfolio.

Investments in foreign securities may be riskier than investments in the U.S.
Because foreign securities are usually denominated in foreign currencies, the
value of the Fund's portfolio may be influenced by currency exchange rates and
exchange control regulations. Foreign securities may be affected by political,
social and economic instability. Some securities may be harder to trade without
incurring a loss and may be difficult to convert into cash. There may be less
public information available, differing settlement procedures, or regulations
and standards that don't match U.S. standards. Some countries may nationalize
or expropriate assets or impose exchange controls. These risks increase when
investing in issuers located in developing countries.

Unsponsored depositary receipts may not provide as much information about the
underlying issuer and may not carry the same voting privileges as sponsored
depositary receipts.

In early 1999, the European Monetary Union implemented a new currency called
the

58
<PAGE>

CHASE SMALL CAPITALIZATION FUND

[BEGIN SIDE BAR]

An investment in the Fund isn't a
deposit of The Chase Manhattan
Bank and it isn't insured or
guaranteed by the Federal Deposit
Insurance Corporation or any
other government agency.

[END SIDE BAR]

59
<PAGE>

The Fund's past performance

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund's Premier Class shares has varied from year to year.
This provides some indication of the risks of investing in the Fund. The table
shows the average annual return over the past year, five years and since
inception. It compares that performance to the S&P 500 Index and the S&P 600
Index, widely recognized market benchmarks, and the Lipper Small Cap Core Funds
Index.

The Lipper Small Cap Core Funds Index consists of funds that invest at least
75% of their equity assets in companies with three-year weighted average market
capitalizations of less than 250% of the dollar weighted median market
capitalization of the S&P Small Cap 600 Index.

YEAR-BY-YEAR RETURNS
Past performance does not predict how
this Fund will perform in the future.

[BAR CHART PLOT POINTS]

1994 -6.12%
1995 31.14%
1996 30.88%
1997 24.08%
1998 -1.83%
1999 13.23%

[END PLOT POINTS]

<TABLE>
<S> <C>
-------------------------------------
BEST QUARTER 17.04%
-------------------------------------
2nd quarter, 1997

-------------------------------------
WORST QUARTER -18.10%
-------------------------------------
3rd quarter, 1998
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS
For the periods ending December 31, 1999

<TABLE>
<CAPTION>
SINCE
PAST PAST INCEPTION
1 YEAR 5 YEARS (4/1/93)
<S> <C> <C> <C>
------------------------------------------------------------------------
PREMIER CLASS SHARES 13.23% 18.80% 13.99%
------------------------------------------------------------------------
S&P 500 INDEX 21.03% 28.54% 19.01%
------------------------------------------------------------------------
S&P 600 INDEX 12.41% 17.05% 13.84%
------------------------------------------------------------------------
LIPPER SMALL CAP CORE FUNDS INDEX 20.17% 17.05% 13.91%
------------------------------------------------------------------------
</TABLE>

60
<PAGE>

CHASE SMALL CAPITALIZATION FUND

Fees and expenses

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

<TABLE>
<CAPTION>
INVESTMENT TOTAL ANNUAL
ADVISORY DISTRIBUTION OTHER FUND OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------
PREMIER CLASS SHARES 0.75% NONE 0.40%# 1.15%#
--------------------------------------------------------------------------------
</TABLE>

* The table is based on expenses incurred in the most recent fiscal year.
# Restated from the most recent fiscal year to reflect current expense
arrangements.

The actual management fee is currently expected to be 0.60% and the total
annual fund operating expenses for Premier Class shares are expected not to
exceed 1.00%. That's because The Chase Manhattan Bank (Chase) and some of the
Fund's other service providers have volunteered not to collect a portion of
their fees and to reimburse others. Chase and these other service providers may
end this arrangement at any time.

The table does not reflect charges or credits which you might incur if you
invest through a financial institution.

EXAMPLE This example helps you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes:

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE

<PAGE>

FUND MANAGEMENT

The investment adviser

The Chase Manhattan Bank (Chase) is the investment adviser to the Fund. Chase
is a wholly owned subsidiary of The Chase Manhattan Corporation, a bank holding
company. Chase provides the Funds with investment advice and supervision. Chase
and its predecessors have more than a century of money management experience.
Chase is located at 270 Park Avenue, New York, New York 10017.

Chase is entitled to receive an annual fee for its services. The following
chart shows the maximum fee as a percentage of each Fund's average daily net
assets:

<TABLE>
<CAPTION>
-------------------------------
FUND FEE
-------------------------------
<S> <C>
MONEY MARKET FUND 0.30%
-------------------------------
SHORT-INTERMEDIATE
TERM U.S. GOVERNMENT
SECURITIES FUND 0.50%
-------------------------------
U.S. GOVERNMENT
SECURITIES FUND 0.50%
-------------------------------
INTERMEDIATE TERM
BOND FUND 0.50%
-------------------------------
INCOME FUND 0.50%
-------------------------------
BALANCED FUND 0.75%
-------------------------------
EQUITY INCOME FUND 0.75%
-------------------------------
CORE EQUITY FUND 0.75%
-------------------------------
EQUITY GROWTH FUND 0.75%
-------------------------------
SMALL CAPITALIZATION
FUND 0.75%
-------------------------------
</TABLE>

Chase Texas is located at 712 Main Street, Houston, Texas 77002.[logo]

62
<PAGE>

The Portfolio Managers

CHASE MONEY MARKET FUND
The portfolio manager is Thomas Nelson, Head of Short Term Investments at
Chase. He has managed the portfolio since October 1999. Prior to this position,
he was responsible for the cash reinvestment of the Securities Lending
Division. Mr. Nelson joined Chase in 1987 as a portfolio manager and trader for
individual fixed income accounts.

CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND
The portfolio managers are Michael Bennis, Vice President and Senior Portfolio
Manager at Chase, Timothy Neumann, Head of the Taxable Core Investment Group at
Chase and Lynn J. Chen, Vice President and Portfolio Manager at Chase. Mr.
Bennis and Mr. Neumann have been responsible for the Fund since October 1999.
Ms. Chen has been responsible for the Fund since April 2000. Before joining
Chase in 1996, Mr. Bennis was a senior analyst and trader at Union Bank of
Switzerland Asset Management. Prior to joining Union Bank of Switzerland, he
was a fixed income analyst at Donaldson, Lufkin & Jenrette. Before joining
Chase in 1997, Mr. Neumann was a portfolio manager for Lehman Brothers Global
Asset Management mortgage-backed securities accounts. Prior to joining Lehman,
he managed fixed income portfolios at Allstate Insurance. Before joining Chase
in 1997, Ms. Chen spent seven years as both a portfolio manager and an analyst
at Nippon Life Insurance Company.

CHASE U.S. GOVERNMENT
SECURITIES FUND
The portfolio managers are Mr. Bennis and Mr. Neumann. They have been
responsible for the Fund since October 1999.

CHASE INTERMEDIATE TERM BOND FUND
The portfolio managers are Leonard Lovito, a Vice President and Senior
Portfolio Manager at Chase and Mr. Neumann. They have managed the Fund since
October 1999. Mr. Lovito joined Chase in 1998. Prior to joining Chase, from
1984 to 1998, Mr. Lovito was Vice President at J. & W. Seligman & Co., Inc.
where he managed a number of fixed income portfolios and mutual funds. Prior to
joining Seligman, Mr. Lovito was a senior Securities Administrator in the
investment department of the Dime Savings Bank of New York.

CHASE BALANCED FUND
Henry Lartique, Executive Vice President and Chief Investment Officer at Chase,
and Jeff Phelps, Portfolio Manager at Chase are responsible for the equity
portion of the portfolio. H. Mitchell Harper,

63
<PAGE>

FUND MANAGEMENT

Senior Vice President, and Portfolio Manager at Chase is responsible for the
fixed income portion of the portfolio. Mr. Lartique has managed the equity
portion of the portfolio since July of 1994. He began his career as a
securities analyst at Chase in 1984. Mr. Lartigue then worked as an Equity Fund
Manager until 1992. From July 1992 to June 1994, he worked as an independent
registered investment adviser. He returned to Chase in 1994. Mr. Phelps has
managed the equity portion of the portfolio since October 1999. Mr. Phelps
joined Chase in 1997. Prior to joining Chase, he was employed by Houston
Industries. Mr. Harper has managed the fixed income portion of the portfolio
since October 1999. Mr. Harper has been with Chase since 1987. Previously he
worked at John Alden Life Insurance Co. from 1985-1987, as Vice President,
Portfolio Management. Prior to that he was Vice President, Department
Head-Investments at Bank Life & Casualty.

CHASE EQUITY INCOME FUND

The portfolio manager is Robert Heintz, a Senior Investment Officer at Chase.
He has managed the portfolio since its inception on March 29, 1988. Mr. Heintz
has worked for Chase Texas since 1983.

CHASE CORE EQUITY FUND
Mr. Lartigue has managed the portfolio since January of 1996. Since January
1999 the funds have been co-managed with Mr. Phelps.

CHASE EQUITY GROWTH FUND
Mr. Lartigue has managed the portfolio since July of 1994.

CHASE SMALL CAPITALIZATION FUND
The portfolio manager is Juliet Ellis, a Senior Investment Officer at Chase.
She has managed the portfolio since September of 1993. Ms. Ellis has worked at
Chase Texas since 1987. Before becoming portfolio manager for the Small
Capitalization Fund, Ms. Ellis was the director of research and an equity
analyst at Chase Texas.[logo]

64
<PAGE>

HOW YOUR ACCOUNT WORKS

Buying Fund shares

There is no commission or sales charge to buy Premier Class shares. You can buy
shares through financial service firms, such as broker-dealers and banks, if
they have an agreement with the Funds' distributor. Your financial service firm
is responsible for promptly forwarding your order to the Chase Funds Service
Center.

Minimum investments

The minimum initial investment is $250,000.

Registered investment advisors and broker dealers offering fee-based
programs may aggregate client fund balances to meet this investment minimum
provided that individual client fund balances meet an investment minimum of
$25,000.

In addition, any registered investment advisors or broker dealers who aggregate
client balances in order to meet the investment minimum must maintain an
average balance of $250,000 per fund.

The Distributor reserves the right to redeem or convert to investor shares at
its prevailing net asset value accounts that do not meet the minimum investment
after one year.

Investment details

The price of the shares is the net asset value per share (NAV). NAV is the
value of everything a Fund owns,

65
<PAGE>

HOW YOUR ACCOUNT WORKS

minus everything it owes, divided by the number of shares held by investors.
You'll pay the next NAV calculated after your financial service firm receives
your instructions, provided that the order is received by the Chase Funds
Service Center before it closes for business that day. Each Fund calculates its
NAV once each day at the close of regular trading on the New York Stock
Exchange.

Each Fund other than the Money Market Fund generally values its assets at their
market value but may use fair value if market prices are unavailable. The Money
Market Fund seeks to maintain a stable NAV of $1.00. It uses the amortized cost
method to value its portfolio of securities. This method provides more
stability in valuations. However, it may also result in periods during which
the stated value of a security is different than the price the Fund would
receive if it sold the investment.

Your financial service firm will not accept your order until it is in proper
form. An order is in proper form only after payment is converted into federal
funds.

You can buy shares on any business day that the New York Stock Exchange and the
Federal Reserve Bank of New York are open.

You must provide a Taxpayer Identification Number or Social Security Number
when you open an account. The Funds reserve the right to refuse any purchase
order or to stop offering shares for sale at any time.[logo]

Selling Fund shares

There is no commission or charge to sell Premier Class shares of the Funds.

You can sell your shares on any day that the Funds are accepting purchase
orders. Your financial service firm will forward your order to the Chase Funds
Service Center. Your financial service firm will be responsible for sending the
Funds all the documentation that they need, and your firm might charge you for
this service. You'll receive the next NAV calculated after the Chase Funds
Service Center receives your order in proper form.

Under normal circumstances, if the Chase Funds Service Center receives your
order before the close of regular trading on the New York Stock Exchange, each
Fund will send your financial service firm the proceeds the next business day.
Under unusual circumstances, each Fund may stop accepting orders to sell and
may postpone payments for more than seven days, as federal securities laws
permit.[logo]

Exchanging Fund shares

You can exchange your shares for Premier shares of other Chase Funds at net
asset value, if your financial service firm allows exchanges. To exchange
shares, contact your financial service firm. You should carefully read the
prospectus of the Fund you want to change to before making any exchanges.[logo]

66
<PAGE>

Other information concerning the Funds

If you have authorized your financial service firm to act upon instructions
received by phone and the firm fails to take reasonable steps to confirm that
the instructions are genuine, it may be liable for any losses due to
unauthorized or fraudulent instructions. You agree that you will not hold a
Fund, your financial service firm or their agents liable for any loss or
expenses from any sales request, including a fraudulent or unauthorized
request, if the financial service firm has taken reasonable precautions.[logo]

For shareholders that bank with Chase, Chase may aggregate investments in the
Chase Funds with balances held in Chase bank accounts for purposes of
determining eligibility for certain bank privileges that are based on specified
minimum balance requirements, such as reduced or no fees for certain banking
services or preferred rates on loans and deposits. Chase and certain other
financial institutions may, at their own expense, provide gifts, such as
computer software packages, guides and books related to investment or
additional Fund shares valued up to $250 to their customers that invest in the
Chase Funds.

Distribution arrangements

The Funds' distributor is CFD Fund Distributors Inc., which we call CFD in this
prospectus. CFD is a subsidiary of The BISYS Group, Inc. and is not affiliated
with Chase.

Each Fund may issue multiple classes of shares. This prospectus relates only to
Premier Class shares of the Funds. Each class may have different requirements
for who may invest, and may have different sales charges and expense levels. A
person who gets compensated for selling Fund shares may receive a different
amount for each class.

Chase and its affiliates and the Funds and their affiliates, agents and
sub-agents may share information about shareholders and their accounts with
each other and with others unless this sharing is prohibited by contract. The
information can be used for a variety of purposes, including offering
investment and insurance products to shareholders.[logo]

Distributions and taxes

The Funds can earn income and they can realize capital gains. The Funds deduct
any expenses and pay these earnings out to shareholders as distributions.

The Chase Short-Intermediate Term U.S. Government Securities Fund, Chase U.S.
Government Securities Fund, Chase Intermediate Term

67
<PAGE>

HOW YOUR ACCOUNT WORKS

Bond Fund and Chase Income Fund (the Fixed Income Funds) declare dividends
daily and distribute the net investment income monthly. The Chase Balanced
Fund, Chase Equity Income Fund, Chase Core Equity Fund, Chase Equity Growth
Fund and Chase Small Capitalization Fund distribute any net investment income
at least quarterly. Net capital gain is distributed at least annually.

You have three options for your distributions if your financial services firm
offers them. You may:

o reinvest all of them in additional Fund shares;

o take distributions of net investment income in cash or as a deposit in a
pre-assigned bank account and reinvest distributions of net capital gain in
additional shares; or

o take all distributions in cash or as a deposit in a pre-assigned bank
account.

If you don't select an option when you open your account, we'll reinvest all
distributions. If we reinvest your distributions, they will be in the same
class of shares. The taxation of dividends won't be affected by the form in
which you receive them.

Dividends of net investment income are usually taxable as ordinary income at
the federal, state and local levels. The state or municipality where you live
may not charge you state and local taxes on dividends earned on certain bonds.
Dividends earned on bonds issued by the U.S. government and its agencies may
also be exempt from some types of state and local taxes.

The Fixed Income Funds, the Chase Balanced Fund and Chase Equity Income Fund
expect that their distributions will consist primarily of ordinary income. The
Chase Core Equity Fund, Chase Equity Growth Fund and Chase Small Capitalization
Fund expect that their distributions will consist primarily of capital gains.

Early in each calendar year, each Fund will send you a notice showing the
amount of distributions you received in the preceding year and the tax status
of those distributions.

For tax purposes, an exchange is treated as selling Fund shares. This will
generally result in a capital gain or loss to you.

The above is a general summary of tax implications of investing in the Funds.
Please consult your tax adviser to see how investing in a Fund will affect your
own tax situation.[logo]

68
<PAGE>

FINANCIAL HIGHLIGHTS

The Financial Highlights tables are intended to help you understand the Funds'
financial performance for the periods for the past five years. The total
returns in the tables represent the rate an investor would have earned or lost
on an investment in the Funds (assuming reinvestment of all dividends and
distributions).

The following tables provide selected per share data and ratios for one unit of
each Fund's predecessor fund for the periods prior to January 1, 1998 and one
Premier share of the Funds for each period since conversion.

This information is supplemented by financial statements including accompanying
notes appearing in the Funds' Annual Report to Shareholders for the year ended
December 31, 1999, which is incorporated by reference into the SAI.
Shareholders may obtain a copy of this annual report by contacting the Funds or
their Shareholder Servicing Agent.

<PAGE>

Chase Money Market Fund

<TABLE>
<CAPTION>
Premier Shares
------------------------------------------------------
For the Years Ended December 31,
PER SHARE OPERATING PERFORMANCE: 1999 1998 1997 1996 1995
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net Investment Income 0.05 0.05 0.05 0.05 0.05
Net Gains or Losses in Investments (both realized and unrealized) -- -- -- -- --
------- ------- ------- ------- -------
Total from Investment Operations 0.05 0.05 0.05 0.05 0.05
Less Distributions:
Dividends from Net Investment Income 0.05 0.05 0.05 0.05 0.05
Distributions from Capital Gains -- -- -- -- --
------- ------- ------- ------- -------
Total Distributions 0.05 0.05 0.05 0.05 0.05
----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 4.89% 5.20% 5.18% 5.06% 5.57%
============================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
----------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 296 $ 195 $ 135 $ 119 $ 71
----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
----------------------------------------------------------------------------------------------------------------------------
Expenses 0.50% 0.50% 0.50% 0.50% 0.50%
----------------------------------------------------------------------------------------------------------------------------
Net Investment Income 4.81% 5.07% 5.09% 4.93% 5.43%
----------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and assumption of expenses 0.58% 0.60% 0.74% 0.72% 0.72%
----------------------------------------------------------------------------------------------------------------------------
Net Investment Income without waivers and assumption of expenses 4.73% 4.97% 4.85% 4.71% 5.21%
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

70
<PAGE>
FINANCIAL HIGHLIGHTS

Chase Short-Intermediate Term U.S. Government Securities Fund

<TABLE>
<CAPTION>
Premier Shares
-----------------------------------------------------------
For the Years Ended December 31,
PER SHARE OPERATING PERFORMANCE: 1999 1998 1997 1996 1995
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 12.60 $ 12.39 $ 11.66 $ 11.35 $ 10.14
---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income 0.60 0.63 0.67 0.60 0.58
Net Gains or Losses in Investments (both realized and unrealized) (0.51) 0.25 0.06 (0.29) 0.63
-------- ------- ------- -------- -------
Total from Investment Operations 0.09 0.88 0.73 0.31 1.21
Less Distributions:
Dividends from Net Investment Income 0.60 0.63 -- -- --
Distributions from Capital Gains 0.04 0.04 -- -- --
-------- ------- ------- ------- -------
Total Distributions 0.64 0.67 -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 12.05 $ 12.60 $ 12.39 $ 11.66 $ 11.35
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 0.72% 7.35% 6.30% 2.68% 12.01%
=================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 31 $ 31 $ 24 $ 29 $ 29
---------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
---------------------------------------------------------------------------------------------------------------------------------
Expenses 0.75% 0.75% 0.75% 0.75% 0.75%
---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income 4.82% 5.06% 5.40% 5.26% 5.38%
---------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and assumption of expenses 1.12% 1.12% 1.01% 0.88% 0.91%
---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income without waivers and assumption of expenses 4.45% 4.69% 5.14% 5.13% 5.22%
---------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 91% 87% 63% 177% 187%
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

71
<PAGE>

Chase U.S. Government Securities Fund

<TABLE>
<CAPTION>
Premier Shares
-----------------------------------------------------------
For the Years Ended December 31,
PER SHARE OPERATING PERFORMANCE: 1999 1998 1997 1996 1995
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 13.83 $ 13.98 $ 12.76 $ 13.01 $ 10.00
---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net Investment Income 0.64 0.72 0.75 0.74 0.73
Net Gains or Losses in Investments (both realized and unrealized) ( 0.99) 0.54 0.47 ( 0.99) 2.28
------- ------- ------- ------- -------
Total from Investment Operations ( 0.35) 1.26 1.22 (0.25) 3.01
Less Distributions:
Dividends from Net Investment Income 0.64 0.72 -- -- --
Distributions from Capital Gains -- 0.68 -- -- --
In Excess of Realized Capital Gains -- 0.01 -- -- --
------- ------- ------- ------- -------
Total Distributions 0.64 1.41 -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 12.84 $ 13.83 $ 13.98 $ 12.76 $ 13.01
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (2.55%) 9.28% 9.55% (1.89%) 30.11%
=================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 8 $ 4 $ 3 $ 3 $ 3
---------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
---------------------------------------------------------------------------------------------------------------------------------
Expenses 0.75% 0.75% 0.75% 0.75% 0.75%
---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income 4.87% 5.07% 5.73% 6.01% 6.38%
---------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and assumption of expenses 2.44% 3.85%* 3.15% 2.09% 2.22%
---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income without waivers and assumption of expenses 3.18% 1.97%* 3.33% 4.67% 4.91%
---------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 19% 110% 87% 48% 17%
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

*Restated.

72
<PAGE>

FINANCIAL HIGHLIGHTS

Chase Intermediate Term Bond Fund

<TABLE>
<CAPTION>
Premier Shares
----------------------------------------------------------
For the Years Ended December 31,
PER SHARE OPERATING PERFORMANCE: 1999 1998 1997 1996 1995
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 12.87 $ 12.75 $ 11.89 $ 11.67 $ 9.99
--------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net Investment Income 0.66 0.68 0.56 0.61 0.64
Net Gains or Losses in Investments (both realized and unrealized) (0.80) 0.27 0.30 (0.39) 1.04
------- ------- ------- ------- -------
Total from Investment Operations (0.14) 0.95 0.86 0.22 1.68
Less Distributions:
Dividends from Net Investment Income 0.66 0.68 -- -- --
Distributions from Capital Gains 0.01 0.15 -- -- --
------- ------- -------- -------- -------
Total Distributions 0.67 0.83 -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 12.06 $ 12.87 $ 12.75 $ 11.89 $ 11.67
--------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1.11%) 7.63% 7.26% 1.86% 16.79%
================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
--------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 39 $ 33 $ 19 $ 7 $ 5
--------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
--------------------------------------------------------------------------------------------------------------------------------
Expenses 0.75% 0.75% 0.75% 0.75% 0.75%
--------------------------------------------------------------------------------------------------------------------------------
Net Investment Income 5.33% 5.25% 5.61% 5.32% 5.89%
--------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and assumption of expenses 1.18% 1.27% 1.25% 1.42% 1.43%
--------------------------------------------------------------------------------------------------------------------------------
Net Investment Income without waivers and assumption of expenses 4.90% 4.73% 5.11% 4.65% 5.21%
--------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 85% 135% 14% 134% 198%
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

73
<PAGE>

Chase Income Fund

<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 20.47 $ 20.18 $ 18.56 $ 18.21 $ 15.39
---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net Investment Income 1.03 1.09 1.14 1.00 0.97
Net Gains or Losses in Investments (both realized and unrealized) (1.59) 0.77 0.48 (0.65) 1.85
------- ------- ------- ------- -------
Total from Investment Operations (0.56) 1.86 1.62 0.35 2.82
Less Distributions:
Dividends from Net Investment Income 1.03 1.09 -- -- --
Distributions from Capital Gains 0.17 0.48 -- -- --
------- ------- -------- ------- --------
Total Distributions 1.20 1.57 -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 18.71 $ 20.47 $ 20.18 $ 18.56 $ 18.21
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (2.78%) 9.47% 8.73% 1.91% 18.38%
=================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 65 $ 60 $ 51 $ 54 $ 57
---------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
---------------------------------------------------------------------------------------------------------------------------------
Expenses 0.75% 0.75% 0.75% 0.75% 0.75%
---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income 5.28% 5.28% 5.82% 5.58% 5.77%
---------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and assumption of expenses 0.93% 0.94% 1.14% 1.07% 1.08%
---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income without waivers and assumption of expenses 5.10% 5.09% 5.43% 5.26% 5.44%
---------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 120% 54% 97% 72% 93%
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

FINANCIAL HIGHLIGHTS

Chase Balanced Fund

<TABLE>
<CAPTION>
Premier Shares
-----------------------------------------------------------
For the Years Ended December 31,
PER SHARE OPERATING PERFORMANCE: 1999 1998 1997 1996 1995
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 34.54 $ 29.26 $ 23.66 $ 21.25 $ 17.16
---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net Investment Income 0.78@ 0.73 0.74 0.63 0.57
Net Gains or Losses in Investments (both realized and unrealized) 4.07 6.53 4.86 1.78 3.52
------- ------- ------- ------- -------
Total from Investment Operations 4.85 7.26 5.60 2.41 4.09
Less Distributions:
Dividends from Net Investment Income 0.70 0.73 -- -- --
Distributions from Capital Gains 0.19 1.25 -- -- --
------- ------- ------- ------- --------
Total Distributions 0.89 1.98 -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 38.50 $ 34.54 $ 29.26 $ 23.66 $ 21.25
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 14.23% 25.15% 23.67% 11.31% 23.83%
=================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 103 $ 59 $ 36 $ 23 $ 21
---------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
---------------------------------------------------------------------------------------------------------------------------------
Expenses 1.00% 1.00% 1.00% 1.00% 1.00%
---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income 2.19% 2.32% 2.73% 2.82% 2.94%
---------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and assumption of expenses 1.19% 1.28% 1.28% 1.17% 1.17%
---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income without waivers and assumption of expenses 2.00% 2.04% 2.45% 2.65% 2.77%
---------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 45% 58% 64% 70% 98%
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

@ Calculated based upon average shares outstanding.

75
<PAGE>

Chase Equity Income Fund

<TABLE>
<CAPTION>
Premier Shares
-----------------------------------------------------------
For the Years Ended December 31,
PER SHARE OPERATING PERFORMANCE: 1999 1998 1997 1996 1995
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 46.14 $ 36.97 $ 28.21 $ 23.93 $ 17.90
---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net Investment Income 0.32@ 0.33 0.40 0.43 0.44
Net Gains or Losses in Investments (both realized and unrealized) 5.65 9.32 8.36 3.85 5.59
------- ------- ------- ------- -------
Total from Investment Operations 5.97 9.65 8.76 4.28 6.03
Less Distributions:
Dividends from Net Investment Income 0.31 0.34 -- -- --
Distributions from Capital Gains 2.00 0.14 -- -- --
------- ------- -------- -------- --------
Total Distributions 2.31 0.48 -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 49.80 $ 46.14 $ 36.97 $ 28.21 $ 23.93
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 13.06% 26.20% 31.05% 17.87% 33.72%
=================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 170 $ 128 $ 75 $ 63 $ 55
---------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
---------------------------------------------------------------------------------------------------------------------------------
Expenses 1.00% 1.00% 1.00% 1.00% 1.00%
---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income 0.66% 0.82% 1.67% 1.67% 2.10%
---------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and assumption of expenses 1.09% 1.10% 1.11% 1.07% 1.09%
---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income without waivers and assumption of expenses 0.57% 0.72% 1.56% 1.60% 2.01%
---------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 16% 3% 14% 24% 11%
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

@ Calculated based upon average shares outstanding.

76
<PAGE>

FINANCIAL HIGHLIGHTS

Chase Core Equity Fund

<TABLE>
<CAPTION>
Premier Shares
-------------------------------------------------------
For the Years Ended December 31,
PER SHARE OPERATING PERFORMANCE: 1999 1998 1997 1996 1995
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $26.52 $21.25 $15.94 $13.01 $10.36
-----------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net Investment Income 0.04@ 0.09 0.14 0.16 0.17
Net Gains or Losses in Investments (both realized and unrealized) 6.27 6.44 5.17 2.77 2.48
------ ------ ------ ------ ------
Total from Investment Operations 6.31 6.53 5.31 2.93 2.65
Less Distributions:
Dividends from Net Investment Income 0.04 0.09 -- -- --
Distributions from Capital Gains 0.55 0.17 -- -- --
------ ------ ------ ------ ------
Total Distributions 0.59 1.26 -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $32.24 $26.52 $21.25 $15.94 $13.01
-----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 23.89% 30.95% 33.33% 22.54% 25.53%
=============================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
-----------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 181 $ 89 $ 51 29 $ 24
-----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
-----------------------------------------------------------------------------------------------------------------------------
Expenses 1.00% 1.00% 1.00% 1.00% 1.00%
-----------------------------------------------------------------------------------------------------------------------------
Net Investment Income 0.13% 0.39% 0.74% 1.10% 1.44%
-----------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and assumption of expenses 1.11% 1.18% 1.20% 1.14% 1.17%
-----------------------------------------------------------------------------------------------------------------------------
Net Investment Income without waivers and assumption of expenses 0.02% 0.21% 0.54% 0.96% 1.27%
-----------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 11%- 32% 24% 29% 133%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

- Portfolio turnover reflects the period January 1, 1999 to August 11, 1999.
After August 11, 1999, all the Fund's investable assets were invested in
Core Equity Portfolio.
@ Calculated based upon average shares outstanding.

77
<PAGE>

Chase Equity Growth Fund

<TABLE>
<CAPTION>
Premier Shares
----------------------------------------------------------
For the Years Ended December 31,
PER SHARE OPERATING PERFORMANCE: 1999 1998 1997 1996 1995
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 52.36 $ 38.36 $ 27.95 $ 23.20 $ 18.44
--------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net Investment Income (0.14)@ 0.03 0.07 0.10 0.17
Net Gains or Losses in Investments (both realized and unrealized) 16.78 15.78 10.34 4.65 4.59
------- ------- ------- ------- -------
Total from Investment Operations 16.64 15.81 10.41 4.75 4.76
Less Distributions:
Dividends from Net Investment Income -- 0.03 -- -- --
Distributions from Capital Gains 0.91 1.78 -- -- --
------- ------- ------- ------- -------
Total Distributions 0.91 1.81 -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 68.09 $ 52.36 $ 38.36 $ 27.95 $ 23.20
--------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 31.85% 41.38% 37.20% 20.52% 25.78%
================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
--------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 320 $ 179 $ 74 $ 57 $ 46
--------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
--------------------------------------------------------------------------------------------------------------------------------
Expenses 1.00% 1.00% 1.00% 1.00% 1.00%
--------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (0.24%) 0.05% 0.20% 0.41% 0.78%
--------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and assumption of expenses 1.03% 1.09% 1.11% 1.08% 1.10%
--------------------------------------------------------------------------------------------------------------------------------
Net Investment Income without waivers and assumption of expenses (0.27%) (0.04%) 0.09% 0.33% 0.68%
--------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 15%- 35% 35% 62% 99%
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

- Portfolio turnover reflects the period January 1, 1999 to August 11, 1999.
After August 11, 1999, all the Fund's investable assets were invested in
Equity Growth Portfolio.
@ Calculated based upon average shares outstanding.

78
<PAGE>

FINANCIAL HIGHLIGHTS

Chase Small Capitalization Fund

<TABLE>
<CAPTION>
Premier Shares
-----------------------------------------------------------
For the Years Ended December 31,
PER SHARE OPERATING PERFORMANCE: 1999 1998 1997 1996 1995
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 19.96 $ 21.78 $ 17.55 $ 13.41 $ 10.23
--------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net Investment Income (0.02)@ (0.01) 0.02 0.01 0.05
Net Gains or Losses in Investments (both realized and unrealized) 2.66 (0.46) 4.21 4.13 3.13
------- ------- ------- ------- -------
Total from Investment Operations 2.64 (0.47) 4.23 4.14 3.18
Less Distributions:
Dividends from Capital Gains -- 0.71 -- -- --
In Excess of Net Realized Gain on Investment -- 0.64 -- -- --
------- ------- ------- ------- -------
Total Distributions -- 1.35 -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 22.60 $ 19.96 $ 21.78 $ 17.55 $ 13.41
--------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 13.23% (1.83%) 24.08% 30.88% 31.14%
================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
--------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 93 $ 65 $ 40 $ 21 $ 13
--------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
--------------------------------------------------------------------------------------------------------------------------------
Expenses 1.00% 1.00% 1.00% 1.22% 1.35%
--------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (0.13%) (0.03%) 0.13% 0.04% 0.46%
--------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and assumption of expenses 1.21% 1.26% 1.40% 1.37% 1.50%
--------------------------------------------------------------------------------------------------------------------------------
Net Investment Income without waivers and assumption of expenses (0.34%) (0.29%) (0.27%) (0.11%) 0.31%
--------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 60% 45% 43% 68% 89%
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

@ Calculated based upon average shares outstanding.

79
<PAGE>

What the terms mean

COLLATERALIZED MORTGAGE OBLIGATIONS: debt securities that are collateralized by
a portfolio of mortgages or mortgage backed securities.

DEBT SECURITIES: securities used by issuers, such as governmental entities and
corporations, to borrow money. The issuer usually pays a fixed, variable or
floating rate of interest and repays the amount borrowed at the maturity date
of the security. However, if a borrower issues a zero coupon debt security, it
does not make regular interest payments.

DEPOSITARY RECEIPTS: instruments which are typically issued by financial
institutions and which represent ownership of securities of foreign
corporations. Depositary receipts are usually designed for use on U.S. and
European securities exchanges.

DISTRIBUTION FEE: a fee that covers the cost of the distribution system used to
sell shares to the public.

FUNDAMENTAL RESEARCH: method which concentrates on "fundamental" information
about an issuer, such as its financial statements, history, management, etc.

MANAGEMENT FEE: a fee paid to the investment adviser to manage the Fund and
make decisions about buying and selling the Fund's investments.

MORTGAGE-RELATED SECURITIES: securities that directly or indirectly represent
an interest in, or are secured by and paid from, mortgage loans secured by real
property.

OTHER EXPENSES: miscellaneous items, including transfer agency, custody and
registration fees.

80
<PAGE>

SHAREHOLDER SERVICE FEE: a fee to cover the cost of paying shareholder
servicing agents to provide certain support services for your account.

STRIPPED OBLIGATIONS: debt securities which are separately traded interest-only
or principal-only components of an underlying obligation.

TECHNICAL ANALYSIS: method which focuses on historical price trends in an
attempt to predict future price movements.

VALUE APPROACH: approach which focuses on identifying securities that the
adviser believes are undervalued by the market, as measured by certain
financial formulas.

YIELD CURVE: measure showing relationship among yields of similar bonds with
different maturities.[logo]

81
<PAGE>

HOW TO REACH US
--------------------------------------------------------------------------------

More information

You'll find more information about the Funds in the following documents:

ANNUAL AND SEMI-ANNUAL REPORTS Our annual and semi-annual reports contain
more information about each Fund's investments and performance. The annual
report also includes details about the market conditions and investment
strategies that had a significant effect on each Fund's performance during the
last fiscal year.

STATEMENT OF ADDITIONAL INFORMATION (SAI) The SAI contains more detailed
information about the Funds and their policies. By law, it's considered to be
part of this prospectus.

You can get a free copy of these documents and other information, or ask us any
questions, by calling us at 1-888-524-2730 or writing to:

Chase Funds Service Center
P.O. Box 419392
Kansas City, MO 64141-6392

You can write or e-mail the SEC's Public Reference Room and ask them to mail
you information about the Funds, including the SAI. They'll charge you a
copying fee for this service. You can also visit the Public Reference Section
and copy the documents while you're there.

Public Reference Section of the SEC
Washington, DC 20549-0102.
1-202-942-8090
E-mail: [email protected]

Reports, a copy of the SAI and other information about the Funds is also
available on the SEC's website at http://www.sec.gov.

The Fund's Investment Company Act File No. is 811-5526

Chase Funds Fulfillment Center
393 Manley Street
West Bridgewater, MA 02379-1039