<PAGE> 1
[PHOTO]
VISTA SELECT TAX FREE FUNDS
ANNUAL
REPORT
-----------------------------------
Vista. Setting the Global Standard.
VISTA SELECT TAX FREE INCOME FUND
VISTA SELECT INTERMEDIATE
TAX FREE INCOME FUND
VISTA SELECT NEW YORK
TAX FREE INCOME FUND
VISTA SELECT NEW JERSEY
TAX FREE INCOME FUND
[VISTA LOGO]
AUGUST 31, 1997
<PAGE> 2
[PHOTO]
HIGHLIGHTS
U.S. economic growth and supply and demand issues were the primary drivers of
the municipal bond market during the reporting year.
- - With the exception of New York, a general lack of new issues was a major
factor in the municipal bond market.
- - The yield on the 30-year Treasury bond declined from 7.11% to 6.61%
CONTENTS
<TABLE>
<S> <C>
Chairman's Letter 1
Vista Select Tax Free Income Fund 2-18
Fund Commentary - Portfolio of Investments
Vista Select Intermediate Tax Free Income Fund 19-37
Fund Commentary - Portfolio of Investments
Vista Select New York Tax Free Income Fund 38-47
Fund Commentary - Portfolio of Investments
Vista Select New Jersey Tax Free Income Fund 48-55
Fund Commentary - Portfolio of Investments
Financial Statements 56-58
Notes to Financial Statements 59-63
Per Share Data 64
Report of Independent Accountants 65
</TABLE>
- --------------------------------------------------------------------------------
INVESTMENTS IN THE FUNDS ARE NOT DEPOSITS OF, OR GUARANTEED OR ENDORSED BY,
THE CHASE MANHATTAN BANK, AND THE SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER GOVERNMENT AGENCY. INVESTMENTS IN MUTUAL
FUNDS INVOLVE RISK, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT
INVESTED.
- --------------------------------------------------------------------------------
<PAGE> 3
VISTA FAMILY OF MUTUAL FUNDS
CHAIRMAN'S LETTER
October 10, 1997
Dear Shareholder:
We are pleased to present this annual report for Vista Select Tax Free Funds for
the year ended August 31, 1997. Inside, you'll find information on the
performance of each of the four funds along with a report from the portfolio
management team.
EXCEPTIONAL U.S. ECONOMY CHALLENGES TRADITIONAL THINKING
During the reporting year, the U.S. economy painted a near-perfect picture, one
characterized by substantial economic growth, excellent corporate performance,
strong job creation and the absence of inflationary pressures. This combination
of factors challenged the traditional economic view that a growing economy and
low unemployment inevitably lead to inflation and higher interest rates. Over
the course of the year, the yield on the 30-year Treasury bond fell from 7.11%
to 6.61%.
Against this backdrop, bond investors were highly sensitive to each report on
the economy's performance. This created occasional periods of volatility as they
anticipated whether the strong growth would cause inflation to erupt. Other
factors in the municipal bond markets were the general lack of supply, improving
state and local finances and concerns that lower interest rates would entice
issuers to refund higher-yielding debt.
This environment proved challenging for the Vista Select Funds' tax free
portfolio management team, but I'm pleased to report that the management team
fulfilled their mission of providing you with competitive yields and relative
stability over the one year period. On behalf of the management team and
everyone at Vista, I thank you for the confidence you've placed in us. We look
forward to serving your investment needs for many years to come.
Sincerely,
/s/ FERGUS REID
Fergus Reid
Chairman
1
<PAGE> 4
ABOUT YOUR FUND
VISTA SELECT TAX FREE INCOME FUND
FUND FACTS
<TABLE>
<S> <C>
OBJECTIVE: Federal tax exempt income*
PRIMARY INVESTMENTS: Municipal bonds
SUGGESTED INVESTMENT
TIME FRAME: 3-5 years minimum
MARKET BENCHMARK: Lehman Municipal Bond Index
LIPPER FUNDS CATEGORY: General Municipal Debt Funds Average
INCEPTION DATE: 1/1/87
NEWSPAPER SYMBOL: TFInc
AS OF AUGUST 31, 1997
NET ASSETS: $677.3M
AVERAGE MATURITY: 17.9 years
AVERAGE DURATION: 7.1 years
AVERAGE QUALITY: Aa/AA
</TABLE>
* A portion of the Fund's income may be subject to the Alternative Minimum Tax,
and some investors may be subject to certain state and local taxes.
PERFORMANCE
Vista Select Tax Free Income Fund, which seeks to provide tax exempt income
through a portfolio of higher-quality municipal bonds of varying maturities, had
a total return of 8.36% for the year ended August 31, 1997. This compares to a
return of 8.83% for the Lipper General Municipal Debt Funds Average.
2
<PAGE> 5
STRATEGY
The positive economic background created occasional periods of interest rate
volatility as market participants reacted to each new report on the economy's
strength. The management team focused its efforts on analyzing and finding value
in specific securities. In the first half of the year, states continued to
benefit from higher-than-expected tax revenues thanks to the expanding national
economy. As a result, the Fund generally shifted assets from city and county
bonds to state-appropriated debt.
This trend towards better finances accelerated and expanded as 1997 progressed
and led the independent ratings agencies to upgrade the credit ratings of many
types of municipal bond issuers. These upgrades, along with low supply and high
demand, led to a narrowing of the yield differential between higher- and
lower-quality securities. In this environment, the management team felt there
was little yield incentive to take on the credit risk associated with
lower-quality investment grade bonds and, therefore, upgraded the Fund's overall
credit quality.
OUTLOOK
As the reporting year ended, the management team was expecting
a significant new supply of municipal bonds. This could have the effect of
raising municipal bond yields and making the market more attractive to new
investors. Another major factor moving forward will be the heavy volume of
pre-refunded bonds in 1998. With so many investors needing to re-invest the
proceeds, the management team expects a strong demand for new issues. Following
the successful strategy of the past year, the focus will remain on active
management as the management team seeks to add value through research and
analysis of individual securities.
3
<PAGE> 6
ABOUT YOUR FUND
VISTA SELECT TAX FREE INCOME FUND
VISTA SELECT TAX FREE INCOME FUND PORTFOLIO COMPOSITION AS OF 8/31/97
FUND'S PORTFOLIO ALLOCATION
Cash 2.7%
Bonds 87.3%
AVERAGE ANNUAL TOTAL RETURNS AS OF 8/31/97+
<TABLE>
<S> <C>
One Year................................................ 8.36%
Five Years.............................................. 6.49%
Ten Years............................................... 7.89%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predicative of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less than
their original cost.
+ The quoted performance of Vista Select Tax Free Income Fund includes
performance of a predecessor account for the period dating back to
8/31/87 and prior to the fund's commencement of operations on 1/1/97.
Returns are adjusted to reflect historical expenses at the levels
indicated (absent reimbursements) in the Expense Summary for the Fund
as disclosed in the Prospectus. The account was not registered with the
Securities and Exchange Commission and, therefore, was not subject to
the investment restrictions imposed by law on registered mutual funds.
If the account had been registered, the account's performance may have
been adversely affected. Also, the Fund is currently waiving certain
fees. This voluntary waiver may be modified or terminated at any time,
which would reduce returns.
4
<PAGE> 7
GROWTH OF HYPOTHETICAL $10,000 INVESTMENTS IN
VISTA SELECT TAX FREE INCOME FUND+
AND ITS KEY BENCHMARKS
<TABLE>
<CAPTION>
Select Tax Free Lehman Muni Lipper General Muni
Income Fund Bond Index Debt Funds Avg.
<S> <C> <C> <C>
8/87 $ 10000 $ 10000 $ 10000
10679.9 10414.4 10210
8/89 11759 11558 11357.9
12483.5 12300.6 11900
8/91 13895.5 13751.7 13296.8
15444.4 15289.5 14812.5
8/93 17204 17153.8 16847.6
17281.8 17178.5 16451.2
8/95 18562.6 18702.2 17655.2
19524.3 19679.9 18483.7
8/31/97 21392.7 22064.2 21041.4
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predicative of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less than
their original cost.
Any capital gain on the principal investment is subject to Federal income tax.
Some investors may also be subject to the Federal Alternative Minimum Tax and
certain state and local taxes.
This chart illustrates comparative performance for $10,000 invested in shares of
Vista Select Tax Free Income Fund, the Lehman Municipal Bond Index and the
Lipper General Municipal Funds Average for the ten years ended August 31, 1997.
The performance of the Fund assumes reinvestment of all dividends and capital
gains. The performance of the index has been adjusted to reflect reinvestment of
all dividends and capital gains on securities included in the benchmark.
The unmanaged Lehman Municipal Bond Index is a total return benchmark for the
long-term, investment grade tax-exempt bond market. Bonds included in the Lehman
Municipal Bond Index are representative of the market. An individual cannot
invest in the index.
The Lipper General Municipal Bond Funds Average represents the average
performances of a universe of 255 actively-managed municipal bond funds. Lipper
is an independent mutual fund performance monitor whose results are based on
total return and do not reflect a sales charge.
+ The quoted performance of Vista Select Tax Free Income Fund includes
performance of a predecessor account for the period dating back to
8/31/87 and prior to the fund's commencement of operations on 1/1/97.
Returns are adjusted to reflect historical expenses at the levels
indicated (absent reimbursements) in the Expense Summary for the Fund
as disclosed in the Prospectus. The account was not registered with the
Securities and Exchange Commission and, therefore, was not subject to
the investment restrictions imposed by law on registered mutual funds.
If the account had been registered, the account's performance may have
been adversely affected. Also, the Fund is currently waiving certain
fees. This voluntary waiver may be modified or terminated at any time,
which would reduce returns.
5
<PAGE> 8
...........................
VISTA SELECT TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--100.0%
- -----------------------------------------------------------
<C> <S> <C>
ALASKA--.2%
-------------------------------
$ 1,600,000 North Slope Boro, Alaska,
Ser. G, GO, 8.35%,
06/30/98 $ 1,655,328
------------
ARIZONA--3.5%
-------------------------------
5,300,000 Pima County, Arizona, Unified
School District, No. 1,
Tucson, GO, 7.50%,
07/01/10 6,572,000
15,000,000 Salt River Project, Arizona
Agriculture, Ser. B, Rev.,
7.00%, 01/01/05 17,156,250
------------
23,728,250
------------
CALIFORNIA--6.8%
-------------------------------
California State, GO,
2,000,000 6.50%, 11/01/09 2,315,000
3,950,000 10.00%, 09/01/99 4,369,687
1,000,000 Ser. B, 10.00%, 08/01/02 1,237,500
1,000,000 Veterans Bond, Ser. AM,
9.00%, 10/01/05 1,283,750
Kern, California High School
District, Ser. A, GO,
3,455,000 6.40%, 02/01/13 3,925,744
3,435,000 6.40%, 08/01/13 3,903,019
3,240,000 6.50%, 02/01/15 3,709,800
3,225,000 6.50%, 08/01/15 3,692,625
Los Angeles County,
California,
2,500,000 Public Works Financing
Authority, Multiple
Capital Facilities
Project V, Ser. A, Rev.,
5.13%, 06/01/17 2,409,375
1,500,000 Transition Committee,
Sales Tax, Proposition
C, Second Sr., Ser. A,
Rev., 5.88%, 07/01/02 1,599,375
4,000,000 Los Angeles, California,
Harbor Department, Rev.,
7.60%, 10/01/18 5,045,000
Modesto, California
Irrigation District,
4,300,000 86 Geysers Geo, COP,
5.00%, 10/01/17 4,047,375
</TABLE>
6
See notes to financial statements.
<PAGE> 9
...........................
VISTA SELECT TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
$ 3,000,000 Financing Authority, Ser.
A, Rev., 6.00%, 10/01/15 $ 3,180,000
5,000,000 Valley Health Systems,
California, Hospital
Improvement Project, Ser.
A, Rev., 6.50%, 05/15/15 5,200,000
------------
45,918,250
------------
COLORADO--4.0%
-------------------------------
1,190,000 Adams County, Colorado School
District No. 012, GO,
6.20%, 12/15/10 1,276,275
6,000,000 Garfield Pitkin & Eagle
Counties Colorado School
District No. Re 1 Roarge
Fk, GO, 6.60%, 12/15/14 6,757,500
1,000,000 Jefferson County Colorado
School District No. R-001,
1985 Ser. B, GO, 9.00%,
12/15/99 1,105,000
Platte River Power Authority,
Colorado, Ser. DD, Rev.,
3,050,000 6.00%, 06/01/05 3,309,250
4,400,000 6.00%, 06/01/06 4,796,000
1,620,000 6.00%, 06/01/07 1,779,975
8,295,000 Westminster, Colorado Special
Purpose Post Project,
Ser. B, Rev., 5.13%,
12/01/16 8,046,150
------------
27,070,150
------------
CONNECTICUT--1.5%
-------------------------------
Connecticut State,
5,000,000 Health & Educational
Facilities Authority,
Edgehill Issue, Ser. B,
FRDN, 3.85%, 09/02/97 5,000,000
4,975,000 Housing Finance Authority,
Housing Mortgage
Financing Program, C1,
Rev., 6.60%, 11/15/23 5,267,281
------------
10,267,281
------------
DELAWARE--0.9%
-------------------------------
5,000,000 Delaware State, EDA,
Osteopathic Hospital
Association of Delaware,
Ser. A, Rev., 6.90%,
01/01/18 5,881,250
</TABLE>
7
See notes to financial statements.
<PAGE> 10
...........................
VISTA SELECT TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
$ 185,000 Sussex County, Delaware,
Single Family Mortgage,
Residential, Rev., 9.38%,
02/01/17 $ 186,745
------------
6,067,995
------------
DISTRICT OF COLUMBIA--2.5%
-------------------------------
10,000,000 District of Columbia,
American Association for
Advancement of Science,
Rev., 5.13%, 01/01/27 9,375,000
Georgetown University,
District of Columbia, Ser.
A, Exchanged, Rev.,
3,285,000 8.13%, 04/01/08 3,421,853
4,000,000 8.25%, 04/01/18 4,167,320
------------
16,964,173
------------
FLORIDA--5.6%
-------------------------------
4,640,000 Broward County, Florida
Resource Recovery, Ses
Broward Co. LP South
Project, Rev., 7.95%,
12/01/08 5,046,000
Dade County, Florida Special
Obligation,
2,200,000 Miami Beach Convention
Center Project, Special
Tax, 8.63%, 12/01/07 2,794,000
1,000,000 Miami Beach Convention
Center, Ser. A., Special
Tax, 8.63%, 12/01/08 1,031,290
5,000,000 Daytona Beach, Florida, Water
& Sewer, Ser. 1978, Rev.,
6.75%, 11/15/07 5,737,500
3,670,000 Greater Orlando Aviation
Authority, Orlando Florida
Airport Facilities, Ser.
A, Rev., 6.50%, 10/01/12 4,014,062
3,205,000 Hillsborough County, Florida,
Aviation Authority, Tampa
International Airport,
Ser. B, Rev., 6.00%,
10/01/18 3,473,419
Orange County, Florida,
4,425,000 Health Facilities
Authority, Orlando
Regional Health Care,
Ser. A, Rev., 6.25%,
10/01/12 4,933,875
</TABLE>
8
See notes to financial statements.
<PAGE> 11
...........................
VISTA SELECT TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
$ 2,310,000 Health Facilities
Authority, Orlando
Regional Health Care,
Ser. C, Rev., 6.25%,
10/01/12 $ 2,575,650
3,000,000 Tourist Development, Ser.
A, Rev., 6.50%, 10/01/10 3,303,750
5,000,000 Tourist Development, Tax,
Rev., 5.00%, 10/01/19 4,718,750
------------
37,628,296
------------
GEORGIA--7.3%
-------------------------------
5,000,000 Burke County, Georgia,
Development Authority PCR,
Oglethorpe Power Co.,
Bogtle, Rev., 8.00%,
01/01/22 5,950,000
7,660,000 De Kalb County, Georgia,
Housing Authority
Apartment Development, Fox
Hollow Apartment, Rev.,
7.00%, 08/15/22 8,368,550
170,000 Georgia State, Residential
Financing Authority Single
Family Insured Mortgage,
Ser. A, Rev., 8.40%,
12/01/18 175,421
Metropolitan Atlanta Rapid
Transit Authority,
Georgia,
5,000,000 Second Indenture, Ser. A,
Rev., 6.90%, 07/01/20 5,756,250
10,485,000 Ser. P, Rev., 6.25%,
07/01/20 11,690,775
17,500,000 Richmond County, Georgia,
Board of Education, GO,
5.95%, 11/01/26 17,666,075
------------
49,607,071
------------
HAWAII--1.4%
-------------------------------
3,265,000 Hawaii State, Airports
System, Third Ser., Rev.,
5.38%, 07/01/01 3,375,194
5,000,000 Honolulu, Hawaii, City &
County, Ser. A, GO, 7.35%,
07/01/08 6,043,750
------------
9,418,944
------------
</TABLE>
9
See notes to financial statements.
<PAGE> 12
...........................
VISTA SELECT TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
ILLINOIS--2.5%
-------------------------------
$ 9,975,000 Chicago, Illinois, O'Hare
International Airport,
Special Facilities, United
Air Lines, Ser. A, Rev.,
8.40%, 05/01/18 $ 10,760,531
Illinois State, Health
Facilities Authority,
862,000 Refunded, Ser. A, Rev.,
7.90%, 08/15/03 997,765
1,803,000 Unrefunded Balance, Ser.
A, Rev., 7.90%, 08/15/03 1,851,302
3,250,000 Illinois State, Housing
Development Authority,
Multi-Family, Ser. 1991-A,
Rev., 8.25%, 07/01/16 3,534,375
------------
17,143,973
------------
INDIANA--0.8%
-------------------------------
5,000,000 Indianapolis, Indiana Local
Public Improvement Bond,
Ser. A, Rev., 6.50%,
01/01/12 5,675,000
------------
KENTUCKY--1.3%
-------------------------------
8,000,000 Louisville & Jefferson
County, Kentucky,
Metropolitan Sewer
District & Drain System,
Ser. A, Rev., 6.50%,
05/15/24 9,040,000
------------
LOUISIANA--1.8%
-------------------------------
2,300,000 Louisville Public Facilities
Authority, Single Family
Mortgage, GNMA Mortgage,
Ser. C, Rev., 8.80%,
04/01/13 2,374,635
Orleans Parish, Louisiana,
School Board,
4,000,000 GO, 7.50%, 09/01/20 4,645,000
2,000,000 Defeased, Rev., 8.85%,
02/01/06 2,595,000
2,000,000 Defeased, Rev., 8.90%,
02/01/07 2,617,500
------------
12,232,135
------------
</TABLE>
10
See notes to financial statements.
<PAGE> 13
...........................
VISTA SELECT TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
MASSACHUSETTS--3.7%
-------------------------------
$ 3,500,000 Chelsea, Massachusetts,
School Project Loan Act
1948, GO, 6.50%, 06/15/12 $ 3,841,250
2,750,000 Haverhill, Massachusetts,
Unlimited Tax, Ser. A, GO,
7.00%, 06/15/12 3,031,875
10,000,000 Massachusetts Bay
Transportation Authority,
General Transportation
Systems, Ser. A, Rev.,
5.00%, 03/01/27 9,237,500
7,000,000 Massachusetts State,
Consolidated Loan, Ser. C,
GO, 5.00%, 08/01/17 6,615,000
2,015,000 South Essex, Massachusetts,
Sewer District, Ser. B,
GO, 6.75%, 06/01/15 2,299,619
------------
25,025,244
------------
MICHIGAN--2.6%
-------------------------------
15,000,000 Detroit, Michigan, Sewer
Disposal, Ser. A, Rev.,
5.00%, 07/01/27 13,875,000
4,000,000 Royal Oak, Michigan, Hospital
Financing Authority,
William Beaumont Hospital,
Rev., 5.25%, 01/01/20 3,855,000
------------
17,730,000
------------
MINNESOTA--0.7%
-------------------------------
4,500,000 Minnesota Public Facilities
Authority Water PCR,
Ser. A, Rev., 4.75%,
03/01/11 4,331,250
------------
MONTANA--1.0%
-------------------------------
Montana State, Long-Range
Building Program,
Ser. D, GO,
2,005,000 5.38%, 08/01/13 2,042,594
2,120,000 5.38%, 08/01/14 2,159,750
2,240,000 5.38%, 08/01/15 2,273,600
------------
6,475,944
------------
</TABLE>
11
See notes to financial statements.
<PAGE> 14
...........................
VISTA SELECT TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
NEW JERSEY--6.7%
-------------------------------
$ 5,215,000 New Jersey EDA, Educational
Testing Service, Ser. B,
Rev., 6.25%, 05/15/25 $ 5,593,087
New Jersey Sports &
Exposition,
3,470,000 Ser. A, Rev., 6.50%,
03/01/19 3,695,550
1,500,000 State Guaranteed, Rev.,
8.30%, 01/01/03 1,770,000
New Jersey State,
5,000,000 Highway Authority, Garden
State Parkway General,
Rev., 6.20%, 01/01/10 5,537,500
15,700,000 Ser. D, GO, 8.00%,
02/15/07 19,605,375
5,000,000 Transportation Trust Fund
Authority,
Transportation Systems,
Ser. B, Rev., 6.50%,
06/15/10 5,762,500
New Jersey Wastewater Treatment Trust,
1,730,000 Prerefunded, Ser. A, Rev.,
7.38%, 05/15/07 1,806,328
20,000 Unrefunded Balance,
Insured, Ser. A, Rev.,
7.38%, 05/15/07 20,828
1,600,000 North Bergen Township, New
Jersey, GO, 5.00%,
08/15/12 1,596,000
------------
45,387,168
------------
NEW YORK--21.7%
-------------------------------
1,450,000 Albany County, New York,
South Mall, Ser. P, Rev.,
9.70%, 10/01/98 1,539,190
2,250,000 Dutchess County, New York
Resource Recovery Agency,
Solid Waste Management,
Ser. A, Rev., 7.50%,
01/01/09 2,427,187
5,500,000 Local Government Assistance
Corp., Ser. C, TAN, 7.00%,
04/01/10 6,084,375
3,450,000 Metropolitan Transportation
Authority of New York,
Commuter Facilities, Ser.
A, Rev., 6.00%, 07/01/16 3,669,937
5,000,000 Municipal Assistance Corp.
for City of New York, New
York, Ser. 67, Rev.,
7.63%, 07/01/08 5,400,000
</TABLE>
12
See notes to financial statements.
<PAGE> 15
...........................
VISTA SELECT TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
$ 3,000,000 Nassau County, New York, IDA,
Civic Facilities, Hofstra
University Project, Rev.,
6.75%, 08/01/11 $ 3,262,500
New York City, New York,
5,000,000 Municipal Water Financing
Authority, Water & Sewer
Systems, Ser. A, Rev.,
5.13%, 06/15/22 4,793,750
12,000,000 Ser. A, GO, 6.25%,
08/01/08 13,290,000
5,000,000 Trust Cultural Resources,
Solomon R Guggenheim
Foundation, Ser. A,
Rev., 7.25%, 12/01/15 5,431,250
New York State, GO,
4,085,000 GO, 6.30%, 09/15/10 4,340,312
4,100,000 GO, 6.30%, 09/15/11 4,371,625
New York State, Dormitory
Authority,
4,500,000 Rochester University, Ser.
A, Rev., 6.40%, 07/01/13 4,848,750
2,500,000 Rockefeller University,
Rev., 7.38%, 07/01/14 2,618,500
2,000,000 New York State, Energy
Research & Development
Authority, PCR, Central
Hudson Gas, Ser. B-1,
Rev., 7.38%, 10/01/14 2,172,500
New York State, Environmental
Facilities Corp., PCR,
State Water Revolving
Fund,
2,000,000 Ser. B, Rev., 7.10%,
09/15/11 2,185,000
2,650,000 Ser. D, Rev., 6.85%,
11/15/11 2,977,937
3,000,000 New York State, Environmental
Quality, GO, 6.50%,
12/01/14 3,240,000
New York State, Housing
Finance Agency,
685,000 Health Facilities, Monroe
County, Ser. A, Rev.,
7.63%, 05/01/05 732,950
4,000,000 State University
Construction, Ser. A,
Rev., 7.90%, 11/01/06 4,765,000
</TABLE>
13
See notes to financial statements.
<PAGE> 16
...........................
VISTA SELECT TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
New York State, Local
Government Assistance
Corp.,
$ 2,340,000 Ser. A, Rev., 7.00%,
04/01/08 $ 2,623,725
3,000,000 Ser. D, Rev., 7.00%,
04/01/11 3,367,500
New York State, Medical Care
Facilities Financing
Agency,
2,780,000 Hospital & Nursing Home,
Insured Mortgage,
Ser. C, Rev., 6.25%,
08/15/12 2,919,000
2,000,000 Special Obligation, Mental
Health Services
Facilities Improvement,
Ser. A, Rev., 8.30%,
05/01/04 2,427,500
New York State,
4,000,000 Mortgage Agency,
Homeownership Mortgage,
Ser. JJ, Rev., 7.50%,
10/01/17 4,210,000
6,000,000 Research & Development
Authority, PCR, Niagara
Mohawk Power Corp., Ser.
A, Rev., 7.20%, 07/01/29 6,862,500
5,500,000 Thruway Authority, General
Purpose, Ser. C, Rev.,
6.00%, 01/01/15 5,788,750
Port Authority, New York &
New Jersey,
1,100,000 Consolidated Bonds, 52nd
Ser., Rev., 9.00%,
11/01/14 1,200,375
6,270,000 Consolidated Bonds, 78th
Ser., Rev., 6.50%,
04/15/11 6,661,875
14,000,000 Consolidated Bonds, 93rd
Ser., Rev., 6.13%,
06/01/94 15,102,500
4,000,000 Consolidated Bonds, 109th
Ser., Rev., 5.38%,
01/15/32 3,895,000
3,030,000 Special Obligation, JFK
International Airport,
Terminal 6, Rev., 5.75%,
12/01/22 3,056,512
285,000 Suffolk County, New York
Water Authority,
Waterworks, Unrefunded
Balance 1993, Rev., 7.38%,
06/01/12 300,128
</TABLE>
14
See notes to financial statements.
<PAGE> 17
...........................
VISTA SELECT TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
$ 9,000,000 Triborough Bridge & Tunnel
Authority, New York,
Convention Center Project,
Ser. E, Rev., 7.25%,
01/01/10 $ 10,406,250
------------
146,972,378
------------
NORTH CAROLINA--1.5%
-------------------------------
10,000,000 North Carolina State, Ser. A,
5.10%, 03/01/06 10,387,500
------------
NORTH DAKOTA--0.9%
-------------------------------
5,000,000 Mercer County, North Dakota,
PCR, Antelope Valley
Station, Rev., 7.20%,
06/30/13 6,050,000
------------
OHIO--1.2%
-------------------------------
7,000,000 Cleveland Ohio Public Power
System First Mortgage,
Ser. A, Rev., 7.00%,
11/15/24 8,163,750
------------
OREGON--2.7%
-------------------------------
Oregon State,
300,000 GO, 11.00%, 12/01/98 325,500
5,780,000 Higher Education Building,
Ser. A, GO, 6.45%,
08/01/24 6,466,375
11,565,000 Portland, Oregon, Sewer
Systems, Ser. A, Rev.,
5.00%, 06/01/15 11,160,225
------------
17,952,100
------------
PENNSYLVANIA--1.0%
-------------------------------
3,000,000 Allegheny County,
Pennsylvania, Airport,
Pittsburgh International
Airport, Ser. B, Rev.,
5.00%, 01/01/19 2,812,500
3,885,000 Pennsylvania State Higher
Education Assistance
Agency, Student Loan, Ser.
A, Rev., 6.80%, 12/01/00 4,132,669
------------
6,945,169
------------
</TABLE>
15
See notes to financial statements.
<PAGE> 18
...........................
VISTA SELECT TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
PUERTO RICO--4.0%
-------------------------------
Puerto Rico Commonwealth,
$ 2,500,000 GO, 6.25%, 07/01/11 $ 2,815,625
3,000,000 Aqueduct & Sewer
Authority, Ser. A, Rev.,
7.88%, 07/01/17 3,160,080
1,500,000 Highway & Transportation
Authority, Refunded
Balance, Ser. T, Rev.,
6.63%, 07/01/18 1,668,750
5,000,000 Puerto Rico Electric Power
Authority, Ser. Y, Rev.,
7.00%, 07/01/07 5,875,000
Puerto Rico Industrial,
Medical & Environmental
PCFA,
6,675,000 Pepsico Inc. Project, Ser. A,
Rev., 6.25%, 11/15/13 7,234,031
3,000,000 Warner Lambert Co. Project,
Rev., 7.60%, 05/01/14 3,240,000
3,000,000 Puerto Rico Public Buildings
Authority, Guaranteed,
Government Facilities,
Ser. A, Rev., 6.25%,
07/01/11 3,375,000
------------
27,368,486
------------
RHODE ISLAND--0.5%
-------------------------------
3,150,000 Rhode Island State Turnpike &
Bridge Authority, Rev.,
5.35%, 12/01/17 3,055,500
------------
SOUTH CAROLINA--3.2%
-------------------------------
6,000,000 Richland County, South
Carolina School District
No. 001, GO, 4.63%,
03/01/22 5,377,500
South Carolina State, Housing
Finance & Development
Authority,
2,000,000 Homeownership Mortgage
Purchase, Ser. B, Rev.,
7.88%, 07/01/15 2,085,000
4,050,000 Ser. B (FHA Insured),
Rev., 7.80%, 07/01/09 4,217,063
</TABLE>
16
See notes to financial statements.
<PAGE> 19
...........................
VISTA SELECT TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
$ 5,000,000 South Carolina State, Public
Service Authority, Ser. A,
Rev., 6.25%, 01/01/22 $ 5,325,000
5,000,000 Spartanburg, South Carolina,
Waterworks, Rev., 5.00%,
06/01/27 4,650,000
------------
21,654,563
------------
SOUTH DAKOTA--0.6%
-------------------------------
3,000,000 Heartland Consumers Power
District, Rev., 7.00%,
01/01/16 3,476,250
435,000 South Dakota State Building
Authority, Rev., 10.50%,
09/01/00 448,107
------------
3,924,357
------------
TEXAS--7.1%
-------------------------------
6,245,000 Arlington, Texas, Independent
School District, GO,
5.00%, 02/15/19 5,909,332
Austin, Texas, Utility
System,
6,540,000 Rev., 5.13%, 11/15/17 6,262,050
6,500,000 Rev., 6.00%, 11/15/13 7,060,625
2,000,000 Combined, Ser. A, Rev.,
9.50%, 05/15/15 2,267,500
2,000,000 Ser. A, Big Book Entry,
Rev., 8.00%, 11/15/16 2,247,500
Dallas-Fort Worth, Texas,
Regional Airport, Ser. A,
2,115,000 Rev., 7.38%, 11/01/08 2,458,688
2,945,000 Rev., 7.38%, 11/01/09 3,423,563
2,000,000 Rev., 7.38%, 11/01/11 2,317,500
Harris County, Texas,
1,300,000 Health Facilities
Development Corp., St.
Lukes Episcopal
Hospital, Ser. B, FRDN,
3.05%, 09/02/97 1,300,000
6,300,000 Toll Road, Sub Lien, Rev.,
5.00%, 08/15/21 5,866,875
Houston, Texas, Water
Conveyance System,
Contract, COP, Ser. F,
</TABLE>
17
See notes to financial statements.
<PAGE> 20
...........................
VISTA SELECT TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
$ 2,500,000 COP, 7.20%, 12/15/05 $ 2,918,750
2,000,000 COP, 7.20%, 12/15/06 2,357,500
3,500,000 Texas State, Texas, Public
Financing Authority, Ser.
B, GO, 6.00%, 10/01/06 3,836,875
------------
48,226,758
------------
UTAH--0.2%
-------------------------------
1,000,000 Sevier County, Utah, School
District Sevier School
District, GO, 9.20%,
05/01/03 1,232,500
------------
WASHINGTON--0.5%
-------------------------------
3,000,000 Washington State, Refunding,
GO, 5.75%, 09/01/10 3,243,750
------------
WISCONSIN--0.1%
-------------------------------
855,000 Wisconsin, Housing & EDA,
Home Ownership, Ser. D,
Rev., 7.90%, 09/01/05 885,105
- -----------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS
(COST $650,317,977) 677,428,368
- -----------------------------------------------------------
<CAPTION>
SHORT-TERM INVESTMENTS--0.8%
- -----------------------------------------------------------
Shares
- -----------------------------------------------------------
<C> <S> <C>
MONEY MARKET FUND
-------------------------------
5,472,757 Provident Municipal Cash
Money Market Fund 5,472,757
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(COST $5,472,757) 5,472,757
===========================================================
TOTAL INVESTMENTS--100.8%
(COST $655,790,734) $682,901,125
- -----------------------------------------------------------
</TABLE>
18
See notes to financial statements.
<PAGE> 21
ABOUT YOUR FUND
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
FUND FACTS
<TABLE>
<S> <C>
OBJECTIVE: Income exempt from federal taxes*
PRIMARY INVESTMENTS: Municipal bonds
SUGGESTED INVESTMENT
TIME FRAME: 3-5 years minimum
MARKET BENCHMARK: Lehman 10 Year Municipal Bond Index
LIPPER FUNDS CATEGORY: Lipper Intermediate Municipal Debt
Funds Average
INCEPTION DATE: 1/1/97
NEWSPAPER SYMBOL: IntmdTF
AS OF AUGUST 31, 1997
NET ASSETS: $631.3M
AVERAGE MATURITY: 7.4 years
AVERAGE DURATION: 5.3 years
AVERAGE QUALITY: Aa/AA
</TABLE>
* A portion of the Fund's income may be subject to the Alternative Minimum Tax,
and some investors may be subject to certain state and local taxes.
PERFORMANCE
Vista Select Intermediate Tax Free Income Fund, which seeks to provide monthly
dividends which are excluded from federal income tax through a portfolio of
higher-quality, intermediate-term municipal bonds, had a total return of 7.91%
for the year ended August 31, 1997. This compares to a return of 7.03% for the
Lipper Intermediate Term Municipal Debt Funds Average.
19
<PAGE> 22
STRATEGY
Early in the year, the Fund adopted a shorter duration than its benchmark, the
unmanaged Lehman 10 Year Municipal Bond Index. This strategy emphasized high
coupon, high premium bonds to help protect against volatility. When interest
rates increased about halfway through the reporting year, the management team
took the opportunity to effect tax swaps in order to maintain the portfolio's
tax efficiency. The team also swapped out of 10-year bonds, which were in high
demand, in favor of what they believed were better relative values in three- and
five-year maturities.
As the year progressed, the trend towards better finances accelerated and
expanded. This led the independent ratings agencies to upgrade the credit
ratings of many types of municipal bond issuers. These upgrades, along with low
supply and high demand, led to a narrowing of the yield differential between
higher- and lower-quality securities. In this environment, the management team
felt there was little yield incentive to take on the credit risk associated with
lower-quality investment grade bonds and, therefore, upgraded the Fund's overall
credit quality.
OUTLOOK
As the reporting year ended, the management team was expecting a significant new
supply of municipal bonds. This could have the effect of raising municipal bond
yields and making the market more attractive to new investors. Another major
factor moving forward will be the heavy volume of pre-refunded bonds in 1998.
With so many investors needing to reinvest the proceeds, the management team
expects a strong demand for new issues. Following the successful strategy of the
past year, the focus will remain on active management as the management team
seeks to add value through research and analysis of individual securities.
20
<PAGE> 23
ABOUT YOUR FUND
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO COMPOSITION AS OF 8/31/97
FUND'S PORTFOLIO ALLOCATION
Cash 5.1%
Bonds 94.9%
AVERAGE ANNUAL TOTAL RETURNS AS OF 8/31/97+
<TABLE>
<S> <C>
One Year................................................ 7.91%
Five Years.............................................. 6.42%
Ten Years............................................... 7.87%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predicative of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less than
their original cost.
+ The quoted performance of Vista Select Intermediate Tax Free Income
Fund includes performance of a predecessor account for the period
dating back to 8/31/87 and prior to the Fund's commencement of
operations on 1/1/97. Returns are adjusted to reflect historical
expenses at the levels indicated (absent reimbursements) in the Expense
Summary for the Fund as disclosed in the Prospectus. The account was
not registered with the Securities and Exchange Commission and,
therefore, was not subject to the investment restrictions imposed by
law on registered mutual funds. If the account had been registered, the
account's performance may have been adversely affected. Also, the Fund
is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce returns.
21
<PAGE> 24
GROWTH OF HYPOTHETICAL $10,000 INVESTMENTS IN
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND+
AND ITS KEY BENCHMARKS
<TABLE>
<CAPTION>
Select Intermediate Lehman 10 Year Muni Lipper Intermediate
Tax Free Income Fund Bond Index Muni Debt Avg.
<S> <C> <C> <C>
8/87 $ 10000 $ 10000 $ 10000
10247.1 10462.9 10314.6
8/89 11306.6 11460 11161.5
11938 12163.8 11792.2
8/91 13377.2 13616.5 12969.5
14884.9 15105.3 14236.2
8/93 16590.7 17048.8 15737.5
16728.6 17173.8 15891.7
8/95 18062.2 18821.7 17003.6
18833.7 19655.9 17669.2
8/31/97 21336.3 21878 19337.4
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predicative of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less than
their original cost.
Any capital gain on the principal investment is subject to Federal income tax.
Some investors may also be subject to the Federal Alternative Minimum and
certain state and local taxes.
This chart illustrates comparative performance for $10,000 invested in shares of
Vista Select Intermediate Tax Free Income Fund, the Lehman 10 Year Municipal
Bond Index and the Lipper Intermediate Municipal Debt Funds Average for the ten
years ended August 31, 1997. The performance of the the Fund assumes
reinvestment of all dividends and capital gains. The performance of the index
has been adjusted to reflect reinvestment of all dividends on securities
included in the benchmark.
The unmanaged Lehman 10 Year Municipal Bond Index is a total return benchmark
for the intermediate-term, investment grade tax-exempt bond market. Bonds
included in the Lehman Intermediate Municipal Bond Index are representative of
the market. An individual cannot invest in the index.
The Lipper 10 Year Municipal Debt Funds Average represents the performance of
145 actively-managed tax-exempt municipal bond funds. Lipper is an independent
mutual fund performance monitor whose results are based on total return and do
not reflect a sales charge.
+ The quoted performance of Vista Select Intermediate Tax Free Income
Fund includes performance of a predecessor account for the period
dating back to 8/31/87 and prior to the Fund's commencement of
operations on 1/1/97. Returns are adjusted to reflect historical
expenses at the levels indicated (absent reimbursements) in the Expense
Summary for the Fund as disclosed in the Prospectus. The account was
not registered with the Securities and Exchange Commission and,
therefore, was not subject to the investment restrictions imposed by
law on registered mutual funds. If the account had been registered, the
account's performance may have been adversely affected. Also, the Fund
is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce returns.
22
<PAGE> 25
...........................
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--98.1%
- -----------------------------------------------------------
<C> <S> <C>
ALABAMA--0.3%
-------------------------------
$ 660,000 Alabama State, GO, 7.00%,
08/01/05 $ 719,400
1,320,000 Shelby County, Alabama, Board
of Education, Capital
Outlay School Warrants,
5.70%, 02/01/09 1,387,650
------------
2,107,050
------------
ARIZONA--0.9%
-------------------------------
2,000,000 Arizona State, Transition
Board Excise Tax, Maricopa
County Regional Area, Ser.
A, Rev., 5.50%, 07/01/00 2,067,500
3,000,000 Maricopa County, Arizona,
School District No. 4,
Mesa Unit, Ser. A, GO,
5.50%, 07/01/09 3,131,250
660,000 Phoenix, Arizona, Street &
Highway User, Rev., 6.75%,
07/01/99 691,350
------------
5,890,100
------------
CALIFORNIA--0.9%
-------------------------------
5,000,000 Los Angeles County,
California, Public Works
Financing Authority,
Regional Park & Open Space
District, Rev., 6.00%,
10/01/08 5,450,000
------------
COLORADO--0.7%
-------------------------------
4,000,000 Eagle Garfield & Routt
Counties Colorado School
District No. Re 50J, GO,
6.13%, 12/01/09 4,335,000
------------
CONNECTICUT--2.7%
-------------------------------
Connecticut State,
1,320,000 Housing Finance Authority,
Housing Mortgage
Financing Program, Ser.
B4 - Sub. B4, Rev.,
6.80%, 11/15/98 1,354,650
1,000,000 Ser B., GO, 6.75%,
07/15/03 1,082,500
Connecticut State, Special
Tax Obligation,
Transportation
Infrastructure,
4,735,000 Ser. A, Rev., 5.40%,
06/01/09 4,894,806
</TABLE>
23
See notes to financial statements.
<PAGE> 26
...........................
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
$ 1,050,000 Ser. B, Rev., 6.00%,
10/01/04 $ 1,139,250
7,000,000 Ser. C, Rev., 6.25%,
10/01/03 7,638,750
660,000 Ser. C, Rev., 6.70%,
12/01/01 708,675
------------
16,818,631
------------
DELAWARE--0.2%
-------------------------------
Delaware Transportation
Authority, Transportation
System, Rev.,
635,000 5.63%, 07/01/05 667,544
660,000 6.75%, 07/01/98 674,698
------------
1,342,242
------------
FLORIDA--1.8%
-------------------------------
2,000,000 Dade County, Florida,
Aviation, Ser. B, Rev.,
6.40%, 10/01/06 2,232,500
660,000 Florida School Boards
Association Inc., Orange
County School Board
Project, Rev., 6.25%,
07/01/05 694,650
Florida State,
2,675,000 Broward County Expressway
Authority, Ser. A, GO,
6.50%, 07/01/03 2,723,685
2,000,000 Department of Corrections,
COP, Okeechobee
Correctional, COP,
6.00%, 03/01/08 2,182,500
3,250,000 Jacksonville, Florida,
Electric Authority, Water
& Sewer, Ser. B, Rev.,
5.50%, 10/01/04 3,408,437
------------
11,241,772
------------
GEORGIA--1.4%
-------------------------------
2,000,000 Dalton, Georgia, Building
Authority, Northwest
Georgia, Trade &
Convention, Rev., 7.10%,
07/01/11 2,222,500
660,000 Georgia State, Ser. A, GO,
6.00%, 03/01/04 717,750
5,000,000 Municipal Electric Authority,
Georgia, Special
Obligation, Sixth
Crossover Project #1,
Rev., 7.00%, 01/01/08 5,856,250
------------
8,796,500
------------
</TABLE>
24
See notes to financial statements.
<PAGE> 27
...........................
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
HAWAII--1.0%
-------------------------------
$ 660,000 Hawaii County, Hawaii, Ser.
A, GO, 5.20%, 05/01/04 $ 682,275
660,000 Hawaii State, Ser. BP, GO,
5.75%, 08/01/08 668,250
Honolulu, Hawaii, City &
County, Ser. A,
2,500,000 GO, 7.30%, 07/01/03 2,840,625
2,000,000 GO, 7.35%, 07/01/06 2,370,000
------------
6,561,150
------------
ILLINOIS--3.9%
-------------------------------
Chicago, Illinois,
1,500,000 Metropolitan Water
Reclamation District,
Greater Chicago Capital
Improvement Bonds, GO,
7.00%, 01/01/08 1,766,250
6,055,000 O'Hare International
Airport, Passenger
Facilities Charge, Ser.
A, Rev., 5.38%, 01/01/07 6,259,356
2,800,000 Sales Tax Rev., Rev.,
5.75%, 01/01/10 2,922,500
Cook County, Illinois, Ser.
A, GO,
3,350,000 6.60%, 11/15/22 3,735,250
1,500,000 6.38%, 11/15/05 1,655,625
5,000,000 Illinois Educational
Facilities Authority,
Northwestern University,
Remarketed, Rev., 6.80%,
12/01/11 5,543,750
Illinois State, Rev.,
660,000 6.40%, 08/01/01 694,650
1,320,000 5.50%, 08/01/06 1,382,700
790,000 Kane County, Illinois
Community United School
District No. 304, Geneva,
GO, 6.10%, 06/01/06 869,987
------------
24,830,068
------------
KENTUCKY--1.0%
-------------------------------
5,000,000 Kentucky State, Turnpike
Authority Economic
Development Board,
Revitalization Projects,
Rev., 5.00%, 07/01/02 5,118,750
</TABLE>
25
See notes to financial statements.
<PAGE> 28
...........................
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
$ 860,000 Owensboro Kentucky, Electric
Light & Power, Rev.,
10.50%, 01/01/04 $ 1,026,625
------------
6,145,375
------------
LOUISIANA--0.2%
-------------------------------
1,275,000 Louisiana Public Facilities
Authority, Prerefunded,
Tulane University, Ser.
A-1, Rev., 6.00%, 02/15/07 1,383,375
------------
MARYLAND--3.1%
-------------------------------
Anne Arundel County,
Maryland,
2,510,000 Consolidate General
Improvement, GO, 6.00%,
08/01/07 2,761,000
2,510,000 Consolidate General
Improvement, GO, 6.00%,
08/01/08 2,751,587
1,470,000 Ser. B, GO, 6.80%,
06/01/04 1,530,417
Maryland State,
1,320,000 Department of
Transportation, Second
Issue, Rev., 6.30%,
11/01/97 1,325,214
660,000 First Ser., GO, 6.80%,
03/01/03 695,475
2,390,000 Fourth Ser.-AL, GO, 7.00%,
10/15/02 2,590,162
3,535,000 Stadium Authority, Lease,
Convention Center
Expansion, Rev., 5.80%,
12/15/09 3,755,938
3,335,000 Stadium Authority, Lease,
Convention Center
Expansion, Rev., 5.75%,
12/15/08 3,555,944
660,000 Montgomery County, Maryland,
Consolidated Public
Improvement, Ser. A, GO,
5.50%, 10/01/03 697,125
------------
19,662,862
------------
MASSACHUSETTS--6.4%
-------------------------------
5,000,000 Chelsea, Massachusetts,
School Project Loan Act
1948, GO, 5.90%, 06/15/08 5,343,750
</TABLE>
26
See notes to financial statements.
<PAGE> 29
...........................
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
$11,360,000 Massachusetts Bay
Transportation Authority,
General Transportation
Systems, Ser. A, Rev.,
5.40%, 03/01/08 $ 11,828,600
Massachusetts State,
3,600,000 Consolidated Loan, Ser. C,
GO, 6.70%, 11/01/09 4,095,000
3,000,000 Housing Finance Agency,
Residential Development,
FNMA Collared, Ser. C,
Rev., 6.45%, 05/15/04 3,240,000
4,215,000 Insured, Ser. A, GO,
5.00%, 08/01/01 4,294,031
3,000,000 Ser. A, GO, 6.00%,
07/01/05 3,251,250
3,165,000 Ser. B, GO, 5.80%,
08/01/09 3,335,119
600,000 Updates, Ser. B, FRDN,
3.65%, 12/01/97 600,000
1,320,000 Water Research Authority,
Ser. A, Rev., 5.70%,
08/01/08 1,405,800
Southeastern Massachusetts
University Building
Authority Project, Ser. A,
Rev.,
1,980,000 5.90%, 05/01/09 2,121,075
1,000,000 5.90%, 05/01/10 1,062,500
------------
40,577,125
------------
MICHIGAN--1.3%
-------------------------------
3,100,000 Bay City, Michigan Electric
Utility, Rev., 6.60%,
01/01/12 3,371,250
3,565,000 Michigan State, Underground
Storage Tank Final
Assurance Authority, Ser.
I, Rev., 5.75%, 05/01/10 3,725,425
1,000,000 Pontiac, Michigan, General
Building Authority, GO,
6.88%, 04/01/06 1,080,000
------------
8,176,675
------------
MINNESOTA--1.4%
-------------------------------
990,000 Metropolitan Council,
Minnesota, Minneapolis-St.
Paul Metropolitan Area,
Ser. D, GO, 6.60%,
09/01/04 1,049,400
</TABLE>
27
See notes to financial statements.
<PAGE> 30
...........................
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
$ 5,000,000 Minnesota State, GO, 6.00%,
08/01/06 $ 5,350,000
2,000,000 Northern Municipal Power
Agency, Minnesota Electric
Systems, Ser. A, Rev.,
5.80%, 01/01/06 2,127,500
------------
8,526,900
------------
MONTANA--0.5%
-------------------------------
3,000,000 Montana State Board
Investment, Payroll Tax,
Workers Compensation
Project, Rev., 6.50%,
06/01/03 3,315,000
------------
NEBRASKA--2.4%
-------------------------------
Omaha Public Power District,
Nebraska Electric,
2,500,000 Ser. A, Rev., 6.25%,
02/01/06 2,709,375
660,000 Ser. A, Rev., 6.30%,
02/01/07 716,100
11,000,000 Ser. C, Rev., 5.40%,
02/01/08 11,508,750
------------
14,934,225
------------
NEVADA--1.4%
-------------------------------
Clark County, Nevada,
1,500,000 GO, 6.00%, 06/01/02 1,595,625
2,670,000 Ser. A, GO, 7.30%,
03/01/99 2,765,880
1,000,000 Nevada State, Rev., 6.75%,
07/01/03 1,057,500
Nevada State, Municipal Bond
Book Project, No 20-23-A,
GO,
1,660,000 7.00%, 07/01/00 1,696,603
1,000,000 7.20%, 07/01/02 1,022,150
1,000,000 7.20%, 11/01/04 1,102,500
------------
9,240,258
------------
NEW HAMPSHIRE--1.4%
-------------------------------
New Hampshire Municipal Bond
Bank,
1,195,000 Ser. A, Rev., 7.10%,
07/15/99 1,247,269
1,390,000 Ser. A, Rev., 7.30%,
07/15/01 1,457,165
4,535,000 Ser. C, Rev., 5.75%,
08/15/10 4,761,750
1,250,000 Ser. C, Rev., 5.75%,
08/15/11 1,301,563
------------
8,767,747
------------
</TABLE>
28
See notes to financial statements.
<PAGE> 31
...........................
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
NEW JERSEY--10.9%
-------------------------------
$ 2,000,000 Atlantic City, New Jersey,
GO, 7.05%, 01/01/01 $ 2,165,000
3,245,000 Elizabeth, New Jersey,
General Improvement, GO,
6.25%, 08/15/08 3,601,950
New Jersey State, EDA, Market
Transition Facility, Sr.
Lien, Ser. A, Rev.,
955,000 5.80%, 07/01/08 1,017,075
8,800,000 5.80%, 07/01/09 9,306,000
3,000,000 New Jersey State, Educational
Facilities Trust Fund,
5.13%, 09/01/01 3,082,500
1,090,000 New Jersey State,
Governmental, GO, 6.00%,
08/01/05 1,170,388
7,180,000 New Jersey State, Higher
Educational Facilities
Authority, Higher
Educational Facilities
Trust Fund, Ser. A, Rev.,
5.13%, 09/01/03 7,422,325
New Jersey State,
Transportation Trust Fund,
Transportation Systems,
5,000,000 Ser. A, Rev., 6.50%,
06/15/05 5,581,250
7,000,000 Ser. B, Rev., 5.50%,
06/15/09 7,306,250
5,000,000 Ser. B, Rev., 6.25%,
06/15/03 5,437,500
1,000,000 New Jersey State, Turnpike
Authority, Rev., 10.38%,
01/01/03 1,173,750
New Jersey State, Wastewater
Treatment Trust, Insured,
Ser. A, Rev.,
2,545,000 7.00%, 05/15/06 2,974,469
2,910,000 7.00%, 05/15/08 3,466,538
3,120,000 7.00%, 05/15/09 3,728,400
New Jersey State, Wastewater
Treatment Trust, Ser. B,
Rev.,
2,410,000 7.00%, 05/15/06 2,786,563
5,520,000 6.88%, 06/15/07 6,410,100
2,000,000 Trenton, New Jersey, GO,
6.25%, 08/15/03 2,192,500
------------
68,822,558
------------
</TABLE>
29
See notes to financial statements.
<PAGE> 32
...........................
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
NEW MEXICO--0.4%
-------------------------------
$ 2,075,000 Gallup, New Mexico, PCR,
Plains Electric
Generation, Rev., 6.40%,
08/15/05 $ 2,259,156
------------
NEW YORK--19.0%
-------------------------------
Metropolitan Transportation
Authority of New York,
Transportation Facilities,
4,000,000 Ser. J, Rev., 6.38%,
07/01/10 4,405,000
5,000,000 Ser. K, Rev., 6.25%,
07/01/05 5,487,500
Nassau County, New York,
1,130,000 Combined Sewer Districts,
Ser. A, GO, 6.70%,
07/01/05 1,244,413
1,125,000 Combined Sewer Districts,
Ser. A, GO, 6.75%,
07/01/06 1,240,313
2,260,000 IDA, Civic Facilities,
Hofstra University
Project, Rev., 6.60%,
08/01/05 2,452,100
4,000,000 Ser. A, GO, 5.00%,
07/01/05 4,065,000
3,500,000 New York City, New York,
Housing Development Corp.,
Growth & Income Sector,
Residential, Royal, FRDN,
9.75%, 10/01/97 4,011,875
New York City, New York,
Municipal Assistance
Corp., Sub. Ser. J, Rev.,
5,500,000 5.50%, 07/01/02 5,747,500
2,000,000 5.75%, 07/01/03 2,127,500
10,000,000 5.25%, 07/01/01 10,300,000
New York City, New York,
Municipal Assistance
Corp.,
2,000,000 Ser. 65, Rev., 7.00%,
07/01/00 2,080,580
2,125,000 Ser. 68, Rev., 7.30%,
07/01/08 2,276,406
New York State Dormitory
Authority,
1,085,000 Pooled Capital Program,
Rev., 7.80%, 12/01/05 1,141,963
3,455,000 State University
Education, Ser. A, Rev.,
6.25%, 05/15/09 3,727,081
</TABLE>
30
See notes to financial statements.
<PAGE> 33
...........................
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
$ 1,000,000 State University
Education, Ser. A, Rev.,
7.00%, 05/15/03 $ 1,060,000
3,750,000 State University
Educational Facilities,
Ser. B, Rev., 5.38%,
05/15/07 3,895,313
1,095,000 State University
Educational Facilities,
Ser. R, Rev., 7.40%,
07/01/06 1,148,316
2,000,000 St. John's University,
Rev., 6.70%, 07/01/04 2,185,000
New York State Dormitory
Authority, Unrefunded
Balance, State University
Educational Facilities,
Ser. A, Rev.,
690,000 7.00%, 05/15/02 730,538
165,000 7.00%, 05/15/03 174,488
205,000 7.00%, 05/15/04 216,531
New York State Environmental
Facilities Corp., PCR,
State Water Revolving
Fund,
6,000,000 New York City Municipal,
Ser. A, Rev., 5.75%,
06/15/08 6,502,500
1,000,000 New York City Municipal,
Ser. A, Rev., 6.90%,
06/15/02 1,093,750
1,000,000 Ser. A, Rev., 7.25%,
06/15/00 1,077,500
2,000,000 Ser. B, Rev., 6.70%,
09/15/04 2,162,500
1,200,000 Ser. D, Rev., 6.55%,
03/15/08 1,296,000
2,000,000 Ser. E, Rev., 6.30%,
06/15/02 2,170,000
5,000,000 New York State Housing
Finance Agency, Housing
Project Mortgage, Ser. A,
Rev., 5.40%, 11/01/05 5,175,000
2,500,000 New York State Local
Assistance Corp., Ser. C,
Rev., 6.70%, 04/01/04 2,706,250
New York State Local
Government Assistance
Corp., Ser. A, Rev.,
10,000,000 5.50%, 04/01/05 10,562,500
660,000 5.70%, 04/01/08 693,000
</TABLE>
31
See notes to financial statements.
<PAGE> 34
...........................
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
New York State Medical Care
Facilities Financing
Agency,
$ 180,000 Unrefunded Balance, Rev.,
7.38%, 08/15/03 $ 190,800
170,000 Prerefunded, Rev., 7.38%,
08/15/03 181,262
965,000 New York State Mortgage
Agency, Homeowner
Mortgage, Ser. EE-3, Rev.,
7.70%, 10/01/10 1,009,631
1,090,000 New York State Power
Authority, General
Purpose, Ser. C, Rev.,
9.50%, 01/01/01 1,173,113
New York State Ser. B, GO,
5,000,000 5.70%, 08/15/10 5,212,500
6,000,000 5.60%, 08/15/07 6,270,000
New York State Thruway
Authority, Highway &
Bridge Trust Fund,
1,320,000 Ser. A, Rev., 5.30%,
04/01/07 1,366,200
4,000,000 Ser. A, Rev., 5.60%,
04/01/07 4,210,000
5,700,000 Ser. B, Rev., 6.00%,
04/01/08 6,113,250
990,000 Westchester County, New York,
IDA, Resource Recovery,
Resco Co. Project, Ser. A,
Rev., 5.60%, 07/01/07 1,037,025
------------
119,920,198
------------
OHIO--5.0%
-------------------------------
2,000,000 Columbus, Ohio, Ser. 1, GO,
6.80%, 09/15/04 2,182,500
3,490,000 Franklin County, Ohio, GO,
6.38%, 12/01/20 3,817,187
4,000,000 Montgomery County, Ohio,
Solid Waste, Rev., 5.50%,
11/01/10 4,125,000
Ohio State Public Facilities
Commission
5,540,000 Higher Education, Capital
Facilities, Ser. II-B,
5.00%, 11/01/00 5,664,650
1,370,000 Mental Health, Ser. A,
Rev., 7.20%, 12/01/00 1,406,483
</TABLE>
32
See notes to financial statements.
<PAGE> 35
...........................
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
Ohio State,
$ 3,360,000 Building Authority, Adult
Correctional, Ser. A,
Rev., 5.75%, 10/01/08 $ 3,553,200
1,320,000 Higher Educational
Facility, Higher
Education Capital
Facilities Bonds, Ser.
11-1990-A, Rev., 6.70%,
05/01/02 1,420,650
6,000,000 Turnpike Commission, Ser.
A, Rev., 5.40%, 02/15/09 6,180,000
2,500,000 Water Development
Authority, Safe Water
Ser., Rev., 6.00%,
06/01/07 2,743,750
660,000 Olentangy Local School
District, Ohio, Ser. A,
GO, 5.85%, 12/01/07 709,500
------------
31,802,920
------------
OREGON--1.4%
-------------------------------
Washington County, Oregon
3,500,000 School District, No. 003,
Hillsboro, GO, 6.00%,
11/01/08 3,810,625
4,590,000 Uni Sewer Agency, Sub
Lien, Ser. One, Rev.,
5.50%, 10/01/05 4,836,713
------------
8,647,338
------------
PENNSYLVANIA--2.4%
-------------------------------
2,625,000 Pennsylvania Convention
Center Authority, Ser. A,
Rev., 6.60%, 09/01/00 2,792,344
Pennsylvania State, GO,
10,000,000 5.13%, 09/15/02 10,287,500
2,000,000 1st Ser. A, 6.60%,
01/01/01 2,135,000
------------
15,214,844
------------
</TABLE>
33
See notes to financial statements.
<PAGE> 36
...........................
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
PUERTO RICO--3.7%
-------------------------------
Puerto Rico Commonwealth, GO,
$10,000,000 5.50%, 07/01/08 $ 10,625,000
5,500,000 5.50%, 07/01/09 5,816,250
5,000,000 Puerto Rico Electric Power
Authority, Ser. M, Rev.,
6.90%, 07/01/98 5,125,150
1,740,000 Puerto Rico Industrial
Medical & Environmental
PCR Financing Authority,
Renasa Inc., Squibb Corp.
Project, (AFICA), Rev.,
6.50%, 07/01/04 1,753,972
------------
23,320,372
------------
RHODE ISLAND--1.7%
-------------------------------
Rhode Island State,
5,120,000 Construction Capital
Development Loan, GO,
5.25%, 08/01/03 5,286,400
5,000,000 Ser. A, GO, 6.10%,
06/15/03 5,362,500
------------
10,648,900
------------
SOUTH CAROLINA--0.3%
-------------------------------
South Carolina State,
990,000 Ser. U-Sub. Ser. U-A, GO,
6.80%, 02/01/04 1,021,551
660,000 Ser. W, GO, 6.30%,
05/01/04 706,200
------------
1,727,751
------------
TENNESSEE--1.5%
-------------------------------
2,170,000 Memphis, Tennessee, Ser. A,
GO, 6.40%, 07/01/04 2,246,796
660,000 Shelby County, Tennessee,
School Bonds, GO, 5.63%,
03/01/07 687,225
6,130,000 Tennessee State, Ser. B, GO,
6.00%, 05/01/05 6,720,012
------------
9,654,033
------------
TEXAS--5.6%
-------------------------------
Arlington, Texas, Independent
School District, School
Building & Referendum,
440,000 Prerefunded, GO, 7.00%,
08/15/98 452,962
</TABLE>
34
See notes to financial statements.
<PAGE> 37
...........................
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
$ 220,000 Unrefunded, GO, 7.00%,
08/15/98 $ 225,881
2,000,000 Conroe, Texas, Independent
School District,
Prerefunded, Lot A-1997,
GO, 6.00%, 08/01/15 2,116,180
Houston, Texas, Water & Sewer
Systems,
25,000 Re-refunded Prior Lien,
Ser. B, Rev., 6.40%,
12/01/09 27,656
4,975,000 Un-refunded Balance, Ser.
B, Rev., 6.40%, 12/01/09 5,404,094
Plano, Texas, Independent
School District, GO,
2,000,000 5.25%, 02/15/02 2,065,000
2,000,000 5.50%, 02/15/01 2,072,500
4,000,000 San Antonio, Texas, GO,
8.00%, 08/01/01 4,500,000
7,665,000 Texas A&M University,
Financing Systems, Rev.,
6.00%, 05/15/04 8,306,944
Texas State,
660,000 Public Financing
Authority, GO, 6.50%,
10/01/05 700,425
7,500,000 Ser. A, GO, 6.00%,
10/01/09 8,259,375
1,320,000 Texas Water Development
Board, State Revolving
Fund, Sr. Lien, Rev.,
6.20%, 07/15/05 1,432,200
------------
35,563,217
------------
VERMONT--3.1%
-------------------------------
4,100,000 Burlington, Vermont,
Electric, Ser. A, Rev.,
6.38%, 07/01/09 4,617,625
Vermont Municipal Bond Book,
Ser. 1, Rev.,
3,475,000 5.40%, 12/01/07 3,644,406
3,000,000 5.30%, 12/01/06 3,123,750
Vermont State, Ser. A, GO,
3,510,000 6.50%, 01/15/09 3,935,587
3,510,000 6.40%, 01/15/08 3,918,038
------------
19,239,406
------------
</TABLE>
35
See notes to financial statements.
<PAGE> 38
...........................
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
VIRGINIA--1.6%
-------------------------------
$ 5,515,000 Chesapeake Bay Bridge &
Tunnel Commonwealth of
Virginia, General
Resolution, Rev., 5.75%,
07/01/08 $ 5,859,687
660,000 Norfolk, Virginia, GO, 6.75%,
10/01/00 693,323
3,280,000 Virginia College Building
Authority, Virginia
Educational Facilities,
Equipment Leasing Program,
Rev., 5.00%, 02/01/01 3,341,500
------------
9,894,510
------------
WASHINGTON--4.0%
-------------------------------
3,900,000 King County, Washington, Ser.
A, GO, 7.00%, 12/01/07 4,207,125
Snohomish County, Washington,
3,025,000 Public Utility District
No. 001, Ser. B, Rev.,
6.40%, 01/01/00 3,161,125
1,800,000 Ser. A, GO, 6.00%,
12/01/05 1,948,500
Washington State,
2,125,000 Ser. A, GO, 6.30%,
03/01/05 2,255,156
3,090,000 Ser. C, GO, 6.50%,
01/01/03 3,387,413
3,800,000 Ser. C, GO, 6.50%,
01/01/04 4,203,750
5,970,000 Ser. E, GO, 5.75%,
07/01/00 6,201,337
------------
25,364,406
------------
WISCONSIN--4.6%
-------------------------------
Milwaukee County, Wisconsin,
Ser. A, GO,
2,850,000 5.25%, 10/01/01 2,942,625
4,625,000 6.50%, 12/01/05 4,995,000
Wisconsin State, Clean Water,
Ser. 1, Rev.,
3,200,000 6.75%, 06/01/08 3,512,000
3,625,000 6.00%, 06/01/06 3,969,375
Wisconsin State,
660,000 Ser. A, GO, 5.00%,
11/01/00 674,025
4,560,000 Ser. B, GO, 5.25%,
05/01/06 4,748,100
</TABLE>
36
See notes to financial statements.
<PAGE> 39
...........................
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
$ 6,145,000 Ser. B, GO, 7.00%,
05/01/04 $ 6,989,937
990,000 Ser. E, GO, 6.55%,
05/01/00 1,017,126
------------
28,848,188
- -----------------------------------------------------------
TOTAL LONG-TERM MUNICIPAL BONDS--
(COST $590,406,666) 619,029,852
- -----------------------------------------------------------
<CAPTION>
SHORT-TERM INVESTMENTS--2.6%
- -----------------------------------------------------------
Shares
- -----------------------------------------------------------
<C> <S> <C>
MONEY MARKET FUND
-------------------------------
16,624,910 Provident Municipal Cash
Money Market Fund 16,624,910
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS--
(COST $16,624,910) 16,624,910
===========================================================
TOTAL INVESTMENTS--100.7%
(COST $607,031,576) $635,654,762
- -----------------------------------------------------------
</TABLE>
37
See notes to financial statements.
<PAGE> 40
ABOUT YOUR FUND
VISTA SELECT NEW YORK TAX FREE INCOME FUND
FUND FACTS
<TABLE>
<S> <C>
OBJECTIVE: Income exempt from federal, New York
state and New York City taxes*
PRIMARY INVESTMENTS: New York municipal bonds
SUGGESTED INVESTMENT
TIME FRAME: 3-5 years minimum
MARKET BENCHMARK: Lehman Municipal Bond Index
LIPPER FUNDS CATEGORY: New York Tax-Exempt Municipal Debt
Funds Average
INCEPTION DATE: 1/1/97
NEWSPAPER SYMBOL: NY TF
AS OF AUGUST 31, 1997
NET ASSETS: $235.4M
AVERAGE MATURITY: 15.2 years
AVERAGE DURATION: 6.7 years
AVERAGE QUALITY: Aa/AA
</TABLE>
* A portion of the Fund's income may be subject to the Alternative Minimum Tax,
and some investors may be subject to certain state and local taxes.
PERFORMANCE
Vista Select New York Tax Free Income Fund, which seeks to provide tax-exempt
income through a portfolio of higher-quality, longer-term municipal bonds, had a
total return of 7.53% for the year ended August 31, 1997. This compares to a
return of 8.93% for the Lipper New York Municipal Debt Funds Average.
38
<PAGE> 41
STRATEGY
Unlike most states in the country, New York municipal bond issuers introduced a
significant new supply into the market during the reporting year. This
supply-rich environment, combined with improving state and local finances, led
the management team to take a very active approach in analyzing and identifying
individual securities.
Early in the reporting year, the management team focused on state-appropriated
debt as well as water and sewer bonds. But as the year progressed, so did the
credit characteristics of many cities and towns in the state. With the plentiful
supply of attractively-priced new issues of both state and local bonds, the
management team took advantage of opportunities to increase yield. While some of
these bonds underperformed over the short term, the strategy eventually proved
beneficial as the market was able to digest the heavy supply.
OUTLOOK
As the reporting year ended, the management team was expecting a significant new
supply of municipal bonds. This could have the effect of raising municipal bond
yields and making the market more attractive to new investors. Another major
factor moving forward will be the heavy volume of pre-refunded bonds in 1998.
With so many investors needing to re-invest the proceeds, the management team
expects a strong demand for new issues. Following the successful strategy of the
past year, the focus will remain on active management as the management team
seeks to add value through research and analysis of individual securities.
39
<PAGE> 42
ABOUT YOUR FUND
VISTA SELECT NEW YORK TAX FREE INCOME
VISTA SELECT NEW YORK TAX FREE INCOME FUND
PORTFOLIO COMPOSITION AS OF 8/31/97
FUND'S PORTFOLIO ALLOCATION
Cash 2.6%
Bonds 97.4%
AVERAGE ANNUAL TOTAL RETURNS AS OF 8/31/97+
<TABLE>
<S> <C>
One Year................................................ 7.53%
Five Years.............................................. 5.90%
Ten Years............................................... 7.65%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predicative of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less than
their original cost.
+ The quoted performance of Vista Select New York Tax Free Income Fund
includes performance of a predecessor account for the period dating
back to 8/31/87 and prior to the Fund's commencement of operations on
1/1/97. Returns are adjusted to reflect historical expenses at the
levels indicated (absent reimbursements) in the Expense Summary for the
Fund as disclosed in the Prospectus. The account was not registered
with the Securities and Exchange Commission and, therefore, was not
subject to the investment restrictions imposed by law on registered
mutual funds. If the account had been registered, the account's
performance may have been adversely affected. Also, the Fund is
currently waiving certain fees. This voluntary waiver may be modified
or terminated at any time, which would reduce returns.
40
<PAGE> 43
GROWTH OF HYPOTHETICAL $10,000 INVESTMENTS IN
VISTA SELECT NEW YORK TAX FREE INCOME FUND+
AND ITS BENCHMARKS
<TABLE>
<CAPTION>
Select New York Tax Lehman Muni Lipper NY
Free Income Fund Bond Index Muni Avg.
$22,064 $20,905 $20,810
<S> <C> <C> <C>
8/87 $ 10000 $ 10000 $ 10000
9958 10117.1 10414.4
8/89 11145.2 11243.4 11558
11769.8 11757.8 12300.6
8/91 13186.6 13124.2 13751.7
14735.3 14731 15289.5
8/93 16400.5 16611 17153.6
16303.7 16383.8 17178.5
8/95 17404.5 17413.9 18702.2
18256.5 18195.6 19679.9
8/31/97 20905.4 22064.2 20810
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predicative of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less than
their original cost.
Any capital gain on the principal investment is subject to Federal income tax.
Some investors may also be subject to the Federal Alternative Minimum Tax and
certain state and local taxes.
This chart illustrates comparative performance for $10,000 invested in shares of
Vista Select New York Tax Free Income Fund, the Lehman Municipal Bond Index and
the Lipper New York Municipal Debt Funds Average for the ten years ended August
31, 1997. The performance of the the Fund assumes reinvestment of all dividends
and capital gains. The performance of the index has been adjusted to reflect
reinvestment of all dividends on securities included in the benchmark.
The unmanaged Lehman Municipal Bond Index is a total return benchmark for the
long-term, investment grade tax-exempt bond market. Bonds included in the Lehman
Municipal Bond Index are representative of the market. An individual cannot
invest in the index.
The Lipper New York Municipal Debt Funds Average represents the performance of a
universe of 101 actively-managed New York tax-exempt municipal bond funds.
Lipper is an independent mutual fund performance monitor whose results are based
on total return and do not reflect a sales charge.
+ The quoted performance of Vista Select New York Tax Free Income Fund
includes performance of a predecessor account for the period dating
back to 8/31/87 and prior to the Fund's commencement of operations on
1/1/97. Returns are adjusted to reflect historical expenses at the
levels indicated (absent reimbursements) in the Expense Summary for the
Fund as disclosed in the Prospectus. The account was not registered
with the Securities and Exchange Commission and, therefore, was not
subject to the investment restrictions imposed by law on registered
mutual funds. If the account had been registered, the account's
performance may have been adversely affected. Also, the Fund is
currently waiving certain fees. This voluntary waiver may be modified
or terminated at any time, which would reduce returns.
41
<PAGE> 44
...........................
VISTA SELECT NEW YORK TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--95.8%
- -----------------------------------------------------------
<C> <S> <C>
$ 2,000,000 Battery Park City Authority,
New York, Ser. A, Rev.,
5.50%, 11/01/26 $ 1,977,500
1,150,000 Broome County, New York, GO,
7.13%, 03/01/99 1,194,563
1,250,000 Dutchess County, New York,
Resource Recovery Agency,
Solid Waste Management, Ser.
A, Rev., 7.50%, 01/01/09 1,348,438
Erie County, New York,
885,000 Public Improvement, GO,
6.00%, 01/15/05 951,375
855,000 Ser. B, GO, 6.00%, 03/15/06 918,056
2,000,000 Water Authority Improvement &
Extension, Rev., 5.75%,
12/01/08 2,115,000
1,500,000 Manhasset, New York Union Free
School District, GO, 7.30%,
01/01/98 1,516,755
Metropolitan Transportation
Authority of New York,
500,000 Commuter Facilities, Ser. B,
Rev., 6.10%, 07/01/09 550,625
1,500,000 Service Contract, Commuter
Facilities, Ser. O, Rev.,
5.10%, 07/01/00 1,524,375
Monroe County, New York, Public
Improvement, GO,
3,770,000 Partially Prerefunded, 6.00%,
03/01/01 3,972,638
730,000 Prerefunded 1995, 6.00%,
03/01/01 770,150
1,230,000 Ser. A, 6.00%, 03/01/12 1,346,850
1,000,000 Ser. A, 6.00%, 03/01/18 1,091,250
1,000,000 Ser. A, 6.00%, 03/01/19 1,085,000
2,000,000 Nassau County, New York,
General Improvements, Ser. Q,
GO, 5.20%, 08/01/12 2,002,500
500,000 New York City, GO, 7.00%,
02/01/06 549,375
</TABLE>
42
See notes to financial statements.
<PAGE> 45
...........................
VISTA SELECT NEW YORK TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
New York City, New York, City
Municipal Water Financing
Authority Water & Sewer
Systems, Prerefunded, Ser. A,
Rev.,
$ 505,000 7.00%, 06/15/09 $ 556,131
495,000 7.00%, 06/15/09 540,169
150,000 New York City, New York,
Escrowed to Maturity, Ser. H,
GO, 6.88%, 02/01/02 164,813
1,000,000 New York City, New York, IDA,
Civil Facilities, New School
for Social Research, Ser. A,
Rev., 5.75%, 09/01/15 1,021,250
New York City, New York,
Municipal Assistance Corp.,
500,000 Ser. 68, Rev., 7.30%,
07/01/08 535,625
2,400,000 Ser. E, Rev., 6.00%, 07/01/05 2,613,000
6,500,000 Ser. G, Rev., 6.00%, 07/01/08 7,101,250
5,000,000 Sub. Ser. J, Rev., 5.50%,
07/01/02 5,225,000
New York City, New York,
2,275,000 Prerefunded, Ser. A, GO,
8.00%, 08/15/18 2,607,719
940,000 Prerefunded, Ser. D, GO,
7.65%, 02/01/06 1,072,775
1,935,000 Prerefunded, Ser. E, GO,
7.00%, 02/01/99 2,014,819
1,500,000 Ser. A, GO, 6.38%, 08/01/05 1,605,000
1,500,000 Ser. A, GO, 6.10%, 08/01/02 1,588,125
2,500,000 Ser. E, GO, 6.00%, 08/01/07 2,728,125
1,445,000 Ser. F, GO, 8.25%, 11/15/02 1,652,719
1,000,000 Ser. H, GO, 7.10%, 02/01/12 1,097,500
440,000 Transportation Authority,
Facilities, Livingston
Plaza Project, Rev.,
4.90%, 01/01/04 446,050
1,750,000 Trust Cultural Resources,
Museum of Modern Art, Ser.
A, Rev., 5.40%, 01/01/12 1,752,187
25,000 Unrefunded Balance, Ser. A,
GO, 8.00%, 08/15/18 28,063
60,000 Unrefunded Balance, Ser. D,
GO, 7.65%, 02/01/06 67,125
850,000 Unrefunded Balance, Ser. H,
GO, 6.88%, 02/01/02 921,188
</TABLE>
43
See notes to financial statements.
<PAGE> 46
...........................
VISTA SELECT NEW YORK TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
New York State,
$ 5,000,000 GO, 6.00%, 03/01/06 $ 5,450,000
1,000,000 GO, 7.10%, 03/01/05 1,103,750
600,000 Rev., 7.50%, 11/15/00 654,750
1,000,000 Rev., 2.75%, 07/01/04 877,500
3,340,000 New York State, Bridge
Authority, Rev., 6.00%,
01/01/06 3,632,250
New York State, Dormitory
Authority, City University
System Consolidation,
2,000,000 3rd Generation, Ser. 1, Rev.,
5.25%, 07/01/08 2,047,500
2,000,000 Ser. B, Rev., 5.75%, 07/01/07 2,140,000
1,545,000 Ser. D, Rev., 5.75%, 07/01/06 1,610,663
2,470,000 Ser. D, Rev., 7.00%, 07/01/09 2,908,425
3,120,000 Ser. D, Rev., 7.00%, 07/01/09 3,673,800
5,000,000 Ser. F, Rev., 5.00%, 07/01/20 4,668,750
New York State, Dormitory
Authority,
1,000,000 Fordham University, Rev.,
7.20%, 07/01/05 1,086,250
2,010,000 Manhattan Eye, Ear & Throat
Hospital, Rev., 5.13%,
07/01/07 1,967,287
2,750,000 New York University, Rev.,
6.38%, 07/01/07 2,945,937
New York State, Dormitory
Authority, State University
Educational Facilities,
2,380,000 Ser. A, Rev., 5.50%, 05/15/06 2,499,000
3,500,000 Ser. A, Rev., 5.50%, 05/15/10 3,556,875
1,250,000 Ser. A, Rev., 7.30%, 05/15/00 1,335,938
2,000,000 Ser. C, Rev., 7.38%, 05/15/10 2,370,000
New York State, Dormitory
Authority, Vassar College,
Rev.,
1,000,000 7.10%, 07/01/04 1,092,500
1,000,000 7.13%, 07/01/10 1,093,750
5,000,000 New York State, Energy Research
& Development Authority, PCR,
New York State Electric & Gas
Corp., Ser. E, Rev., 5.90%,
12/01/06 5,425,000
5,000,000 New York State, Environmental
Facilities, Rev., 7.25%,
06/15/10 5,550,000
</TABLE>
44
See notes to financial statements.
<PAGE> 47
...........................
VISTA SELECT NEW YORK TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
New York State, Housing Finance
Agency,
$ 2,020,000 Health Facilities, Monroe
County, Ser. A, Rev.,
7.63%, 05/01/05 $ 2,161,400
835,000 Pre-Refunded, Rev., 8.00%,
11/01/08 941,462
650,000 Service Contract Obligation,
Ser. A, Rev., 7.38%,
09/15/21 739,375
1,500,000 State University
Construction, Ser. A,
Rev., 7.90%, 11/01/06 1,786,875
1,550,000 State University
Construction, Ser. A,
Rev., 8.00%, 05/01/11 1,941,375
165,000 Unrefunded Balance, Rev.,
8.00%, 11/01/08 182,531
New York State, Local
Government Assistance Corp.,
5,000,000 Ser. A, Rev., 5.25%, 04/01/14 4,968,750
2,000,000 Ser. A, Rev., 6.00%, 04/01/07 2,185,000
5,000,000 Ser. E, Rev., 5.50%, 04/01/04 5,262,500
New York State, Medical Care
Facilities Financing Agency,
1,500,000 FHA Insured Mortgage Project
A, Rev., 5.40%, 08/15/04 1,561,875
640,000 FHA Insured Mortgage Project,
1995, Ser. C, Rev., 5.40%,
08/15/05 661,600
3,100,000 Insured Mortgage Rev., Rev.,
8.00%, 02/15/08 3,218,699
360,000 Prerefunded Balance, Rev.,
7.70%, 08/15/03 400,500
165,000 Unrefunded Balance, Rev.,
7.70%, 08/15/03 180,263
340,000 New York State, Mortgage Agency
(FHA insured), Rev., 8.00%,
10/01/17 352,495
1,000,000 New York State, Power
Authority, Ser. V, Rev.,
7.60%, 01/01/03 1,029,980
New York State, Special Bonds,
GO,
3,000,000 7.00%, 11/15/03 3,288,750
1,500,000 7.10%, 11/15/04 1,648,125
1,000,000 7.13%, 11/15/06 1,098,750
1,550,000 New York State, Thruway
Authority, Service Contract,
Local Highways & Bridges,
Rev., 5.80%, 04/01/00 1,598,437
</TABLE>
45
See notes to financial statements.
<PAGE> 48
...........................
VISTA SELECT NEW YORK TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
$ 5,000,000 New York State, Urban
Development Corp.,
Correctional Capital
Facilities, Rev., 5.63%,
01/01/07 $ 5,250,000
1,770,000 Oyster Bay, New York, GO,
5.00%, 02/15/04 1,800,975
Port Authority, New York & New
Jersey,
10,000,000 Consolidated-Ninety-Third
Ser., Rev., 6.13%,
06/01/94 10,787,500
2,900,000 Special Obligation, JFK
International Airport,
Terminal 6, Rev., 5.75%,
12/01/22 2,925,375
Puerto Rico Commonwealth,
1,960,000 GO, 6.90%, 07/01/00 2,099,650
5,000,000 Aqueduct & Sewer Authority,
Ser. A, Rev., 7.90%,
07/01/07 5,267,800
5,635,000 Highway & Transportation
Authority, Ser. Y, Rev.,
5.25%, 07/01/00 5,768,831
2,105,000 Highway & Transportation
Authority, Ser. Z, Rev.,
6.25%, 07/01/07 2,352,337
Puerto Rico Electric Power
Authority,
5,000,000 Ser. AA, Rev., 5.38%,
07/01/27 4,912,500
1,800,000 Ser. X, Rev., 6.00%, 07/01/11 1,896,750
2,000,000 Puerto Rico Public Buildings
Authority, Guaranteed,
Government Facilities, Ser.
A, Rev., 6.25%, 07/01/13 2,245,000
1,065,000 Sullivan County, New York,
Public Improvement, GO,
5.00%, 03/15/08 1,072,987
Triborough Bridge & Tunnel
Authority, New York,
8,000,000 General Purpose, Ser. A,
Rev., 5.00%, 01/01/24 7,390,000
6,000,000 General Purpose, Ser. B,
Rev., 5.20%, 01/01/27 5,737,500
1,000,000 General Purpose, Ser. O,
Rev., 7.40%, 01/01/05 1,057,500
7,125,000 General Purpose, Ser. Y,
Rev., 6.00%, 01/01/12 7,766,250
</TABLE>
46
See notes to financial statements.
<PAGE> 49
...........................
VISTA SELECT NEW YORK TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
$ 2,000,000 Ser. L, Rev., 8.00%, 01/01/07 $ 2,064,440
3,500,000 Special Obligation, Ser. B,
Rev., 6.88%, 01/01/15 3,793,124
- -----------------------------------------------------------
TOTAL LONG-TERM MUNICIPAL BONDS
(COST $215,444,162) 225,340,269
- -----------------------------------------------------------
<CAPTION>
SHORT-TERM INVESTMENTS--3.3%
- -----------------------------------------------------------
<C> <S> <C>
FLOATING RATE DEMAND NOTES--2.1%
--------------------------------
New York City, New York,
1,100,000 Ser. B through Sub-Ser.
B5, 3.75%, 09/02/97 1,100,000
1,000,000 Sub. Ser. E-3., 3.70%,
09/02/97 1,000,000
2,900,000 New York State, Job
Development Authority,
Ser. B-1 through B-21,
3.90%, 09/02/97 2,900,000
- -----------------------------------------------------------
TOTAL FLOATING RATE DEMAND NOTES
(COST $5,000,000) 5,000,000
- -----------------------------------------------------------
<CAPTION>
Shares
- -----------------------------------------------------------
<C> <S> <C>
MONEY MARKET FUND--1.2%
-------------------------------
2,935,857 Provident New York Money
Market Fund, (COST
$2,935,857) 2,935,857
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(COST $7,935,857) 7,935,857
===========================================================
TOTAL INVESTMENTS--99.1%
(COST $223,380,019) $233,276,126
- -----------------------------------------------------------
</TABLE>
47
See notes to financial statements.
<PAGE> 50
ABOUT YOUR FUND
VISTA SELECT NEW JERSEY TAX FREE INCOME FUND
FUND FACTS
<TABLE>
<S> <C>
OBJECTIVE: Income exempt from federal and New
Jersey state taxes*
PRIMARY INVESTMENTS: New Jersey municipal bonds
SUGGESTED INVESTMENT
TIME FRAME: 3-5 years minimum
MARKET BENCHMARK: Lehman 7-year Municipal Bond Index
LIPPER FUNDS CATEGORY: Lipper New Jersey Municipal Debt
Funds Average
INCEPTION DATE: 1/1/97
NEWSPAPER SYMBOL: NJ TF
AS OF AUGUST 31, 1997
NET ASSETS: $64.2M
AVERAGE MATURITY: 8.7 years
AVERAGE DURATION: 5.5 years
AVERAGE QUALITY: Aa/AA
</TABLE>
* A portion of the Fund's income may be subject to the Alternative Minimum Tax,
and some investors may be subject to certain state and local taxes.
PERFORMANCE
Vista Select New Jersey Tax Free Income Fund, which seeks to provide monthly
dividends which are excluded from gross income for federal tax purposes and
exempt from New Jersey personal income tax, had a total return of 6.09% for the
year ended August 31, 1997. This compares to a return of 8.18% for the Lipper
New Jersey Municipal Debt Funds Average.
48
<PAGE> 51
STRATEGY
Early in the year, the Fund adopted a shorter duration than its benchmark, the
Lehman 7-Year Municipal Bond Index. This strategy emphasized high coupon, high
premium bonds to help protect against volatility. When interest rates increased
about halfway through the reporting year, the management team swapped out of
shorter call bonds and into longer issues. These longer issues were non-callable
or had more favorable call provisions in an effort to lock in a premium price
and reduce the probability of reinvestment in a lower-rate environment.
As the year progressed, the trend towards better finances accelerated and
expanded. This led the independent ratings agencies to upgrade the credit
ratings of all types of municipal bond issuers. These upgrades, along with low
supply and high demand, led to a narrowing of the yield differential between
higher- and lower-quality securities. In this environment, the management team
felt there was little yield incentive to take on the credit risk associated with
lower-quality investment-grade bonds and, therefore, upgraded the Fund's overall
credit quality.
OUTLOOK
As the reporting year ended, the management team was expecting a heavy volume of
pre-refunded bonds in 1998. With so many investors needing to re-invest the
proceeds, the management team expects a continued strong demand for new issues.
Following the successful strategy of the past year, the focus will remain on
active management as the management team seeks to add value through research and
analysis of specific securities.
49
<PAGE> 52
ABOUT YOUR FUND
VISTA SELECT NEW JERSEY TAX FREE INCOME FUND
VISTA SELECT NEW JERSEY TAX FREE INCOME FUND
PORTFOLIO COMPOSITION AS OF 8/31/97
FUND'S PORTFOLIO ALLOCATION
Cash 2.5%
Bonds 97.5%
AVERAGE ANNUAL TOTAL RETURNS AS OF 8/31/97+
<TABLE>
<S> <C>
One Year................................................ 6.09%
Five Years.............................................. 5.49%
Since Inception (5/1/90)................................ 6.60%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predicative of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less than
their original cost
+ The quoted performance of Vista Select New Jersey Tax Free Income Fund
includes performance of a predecessor account for the period dating back to
5/1/90 and prior to the Fund's commencement of operations on 1/1/97. Returns
are adjusted to reflect historical expenses at the levels indicated (absent
reimbursements) in the Expense Summary for the Fund as disclosed in the
Prospectus. The account was not registered with the Securities and Exchange
Commission and, therefore, was not subject to the investment restrictions
imposed by law on registered mutual funds. If the account had been
registered, the account's performance may have been adversely affected. Also,
the Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce returns.
50
<PAGE> 53
GROWTH OF HYPOTHETICAL $10,000 INVESTMENTS IN
VISTA SELECT NEW JERSEY TAX FEE INCOME FUND+
AND ITS KEY BENCHMARKS
<TABLE>
<CAPTION>
Select New Jersey Lehman 7 Year Muni Lipper NU Muni
Tax Free Income Fund Bond Index Debt Funds Avg.
<S> <C> <C> <C>
5/90 $ 10000 $ 10000 $ 10000
11114.5 11240.2 11323.3
8/92 12176.6 12411.6 12559.4
13227.9 13729.3 14141.1
8/94 13420.6 13923.1 13939.7
14420.3 15147.8 14919.9
8/96 14992.7 15737.9 15609.9
8/31/97 15906.4 16963.7 16888.6
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predicative of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less than
their original cost.
Any capital gain on the principal investment is subject to Federal income tax.
Some investors may also be subject to the Federal Alternative Minimum Tax and
certain state and local taxes.
This chart illustrates comparative performance for $10,000 invested in shares of
Vista Select New Jersey Tax Free Income Fund, the Lehman 7 Year Municipal Bond
Index and the Lipper New Jersey Municipal Debt Funds Average from May 31, 1990
through August 31, 1997. The performance of the the Fund assumes reinvestment of
all dividends and capital gains. The performance of the index has been adjusted
to reflect reinvestment of all dividends on securities included in the
benchmark.
The unmanaged Lehman 7-Year Municipal Bond Index is a total return benchmark for
the long-term, investment grade tax-exempt bond market. Bonds included in the
Lehman Municipal Bond Index are representative of the market. An individual
cannot invest in the index.
The Lipper New Jersey Municipal Debt Funds Average represents the performance of
a universe of 60 actively-managed New Jersey tax-exempt municipal bond funds.
Lipper is an independent mutual fund performance monitor whose results are based
on total return and do not reflect a sales charge.
+ The quoted performance of Vista Select New Jersey Tax Free Income Fund
includes performance of a predecessor account for the period dating
back to 5/1/90 and prior to the Fund's commencement of operations on
1/1/97. Returns are adjusted to reflect historical expenses at the
levels indicated (absent reimbursements) in the Expense Summary for the
Fund as disclosed in the Prospectus. The account was not registered
with the Securities and Exchange Commission and, therefore, was not
subject to the investment restrictions imposed by law on registered
mutual funds. If the account had been registered, the account's
performance may have been adversely affected. Also, the Fund is
currently waiving certain fees. This voluntary waiver may be modified
or terminated at any time, which would reduce returns.
51
<PAGE> 54
...........................
VISTA SELECT NEW JERSEY TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--96.3%
- -----------------------------------------------------------
<C> <S> <C>
$ 855,000 Atlantic City, New Jersey,
Improvement Authority Luxury
Tax, Convention Center, Rev.,
6.70%, 07/01/98 $ 875,238
Bergen County, New Jersey,
855,000 General Improvement, GO,
6.25%, 11/15/00 907,369
2,110,000 Utility Authority, Ser. A,
Rev., 6.00%, 06/15/01 2,233,962
570,000 Camden County, New Jersey, GO,
7.00%, 12/01/05 597,787
1,000,000 Cherry Hill Township, New
Jersey, GO, 6.10%, 06/01/07 1,067,500
1,000,000 Delaware River & Bay Authority,
Delaware Authority, Rev.,
5.20%, 01/01/10 1,008,750
710,000 Dover Township, New Jersey, GO,
6.10%, 10/15/04 776,562
570,000 Edison Township, New Jersey,
School, GO, 6.50%, 06/01/04 631,275
1,140,000 Hamilton Township, Atlantic
County, New Jersey School
District, GO, 5.88%, 12/15/07 1,221,225
1,000,000 Hunterdon, New Jersey Central
Regional High School District,
GO, 5.40%, 05/01/09 1,030,000
2,060,000 Jersey City, New Jersey, General
Improvement, Ser. A, GO,
6.00%, 10/01/05 2,229,950
Middlesex County, New Jersey,
Utilities Authority,
1,255,000 Rev., 6.10%, 12/01/01 1,339,712
715,000 Ser. A, Rev., 6.10%, 09/15/00 750,750
Monmouth County, New Jersey,
1,555,000 Improvement Authority,
Recreational Facilities,
Rev., 6.63%, 12/01/05 1,656,075
570,000 Utilities, GO, 6.90%, 08/01/04 617,025
New Jersey State, EDA, Market
Transition Facilities, Senior
Lien, Ser. A, Rev.,
1,710,000 5.80%, 07/01/08 1,821,150
1,200,000 5.80%, 07/01/09 1,269,000
1,500,000 7.00%, 07/01/04 1,708,125
</TABLE>
52
See notes to financial statements.
<PAGE> 55
...........................
VISTA SELECT NEW JERSEY TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
New Jersey State, Educational
Facilities Authority,
$ 570,000 Princeton University, Ser. A,
Rev., 6.45%, 07/01/99 $ 581,400
2,850,000 University Medicine &
Dentistry, Ser. B, Rev.,
5.25%, 12/01/21 2,785,875
New Jersey State, Governmental,
GO,
1,535,000 6.25%, 08/01/06 1,667,394
1,425,000 6.00%, 08/01/03 1,524,750
New Jersey State, Health Care
Facilities Financing
Authority,
845,000 FHA Insured, Cathedral Health,
Ser. A, Rev., 6.95%,
02/15/01 914,713
570,000 Society of the Valley
Hospital, Ser. C, Rev.,
6.60%, 07/01/00 603,488
1,170,000 St. Elizabeth Hospital
Obligation Group, Rev.,
6.00%, 07/01/14 1,186,088
835,000 St. Peters Medical Center,
Ser. E, Rev., 6.50%,
07/01/06 913,281
New Jersey State,
1,140,000 Ser. B, GO, 6.25%, 01/15/04 1,248,300
1,140,000 Ser. D, GO, 5.75%, 02/15/06 1,229,775
New Jersey State, Sports &
Exposition, Ser. A, Rev.,
800,000 6.50%, 03/01/07 881,000
1,255,000 6.20%, 03/01/03 1,374,225
570,000 New Jersey State, Transportation
Corp., COP, 6.20%, 10/01/02 614,175
1,500,000 New Jersey State, Transportation
Trust Fund, Transportation
Systems, Ser. A, Rev., 5.50%,
06/15/11 1,533,750
New Jersey State, Turnpike
Authority,
1,140,000 Ser. A, Rev., 5.80%, 01/01/02 1,194,150
1,140,000 Ser. A, Rev., 6.40%, 01/01/02 1,211,250
1,000,000 Ser. C, Rev., 6.25%, 01/01/10 1,061,250
New Jersey State, Wastewater
Treatment Trust,
520,000 Prerefunded Balance, Rev.,
6.88%, 06/15/06 562,900
50,000 Unrefunded Balance, Rev.,
6.88%, 06/15/06 53,625
570,000 New Jersey State, Wastewater,
Ser. B, Rev., 6.90%, 05/15/00 597,788
</TABLE>
53
See notes to financial statements.
<PAGE> 56
...........................
VISTA SELECT NEW JERSEY TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
LONG-TERM MUNICIPAL BONDS--(CONTINUED)
- -----------------------------------------------------------
<C> <S> <C>
$ 1,570,000 North Bergen Township, New
Jersey, GO, 5.00%, 08/15/11 $ 1,566,075
1,140,000 North Jersey State, District
Water Supply, Wanaque South
Project, Rev., 5.50%, 07/01/03 1,197,000
1,140,000 Northwest Bergen County, New
Jersey Utilities Authority,
Rev., 6.00%, 07/15/07 1,231,200
Ocean County, New Jersey,
570,000 Rev., 6.80%, 06/15/00 607,050
570,000 General Improvement, GO,
6.38%, 04/15/03 621,300
570,000 Ser. A, GO, 6.25%, 10/01/04 613,462
1,000,000 Utilities Authority,
Wastewater, Rev., 5.00%,
01/01/04 1,020,000
Port Authority, New York & New Jersey,
1,000,000 Consolidated Bonds, 102nd
Ser., Rev., 5.50%, 10/15/10 1,023,750
855,000 Consolidated Bonds, 78th Ser.,
Rev., 6.10%, 10/15/02 923,400
1,140,000 Consolidated Bonds, 79th Ser.,
Rev., 6.00%, 07/15/05 1,242,600
3,000,000 Special Obligation, JFK
International Air Terminal
#6, Rev., 6.25%, 12/01/09 3,322,500
Puerto Rico Electric Power
Authority,
1,500,000 Ser. AA, Rev., 5.38%, 07/01/27 1,473,750
685,000 Rutgers State University, New
Jersey, Rev., 6.70%, 05/01/01 726,956
Sussex County, New Jersey,
General Improvement, GO,
1,000,000 6.00%, 04/01/08 1,066,250
1,000,000 6.00%, 04/01/09 1,061,250
625,000 Woodbridge Township, New Jersey,
General Improvement, GO,
6.65%, 08/01/04 669,531
- -----------------------------------------------------------
TOTAL LONG-TERM MUNICIPAL BONDS
(COST $58,857,645) 61,846,706
- -----------------------------------------------------------
</TABLE>
54
See notes to financial statements.
<PAGE> 57
...........................
VISTA SELECT NEW JERSEY TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1997 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------
SHORT-TERM INVESTMENTS--2.8%
- -----------------------------------------------------------
<C> <S> <C>
FLOATING RATE DEMAND NOTE--1.7%
--------------------------------
Puerto Rico Electric Power
Authority,
$ 1,100,000 Municipal Securities Trust
Receipts, Ser. SGA 43, GO,
3.30%, 04/05/97
(COST $1,100,000) $ 1,100,000
<CAPTION>
- -----------------------------------------------------------
Shares
- -----------------------------------------------------------
<C> <S> <C>
MONEY MARKET FUND--1.1%
--------------------------------
675,312 Provident New Jersey Money
Market Fund (COST $675,312) 675,312
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(COST $1,775,312) 1,775,312
===========================================================
TOTAL INVESTMENTS--99.1%
(COST $60,632,957) $63,622,018
- -----------------------------------------------------------
</TABLE>
COP = Certificates of Participation
EDA = Economic Development Authority
FHA = Federal Housing Authority
FNMA = Federal National Mortgage Association
FRDN = Floating Rate Demand Note: The maturity date
shown is the next interest reset date; the
rate shown is the rate in effect at August
31, 1997.
GNMA = Government National Mortgage Association
GO = General Obligation
IDA = Industrial Development Authority
PCFA = Pollution Control Financing Authority
PCR = Pollution Control Revenue
Rev. = Revenue Bond
55
See notes to financial statements.
<PAGE> 58
...........................
<TABLE>
<CAPTION>
VISTA MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES August 31, 1997
- --------------------------------------------------------------------------------------
Vista Select
--------------------------------------------------------
Intermediate New York New Jersey
Tax Free Tax Free Tax Free Tax Free
Income Fund Income Fund Income Fund Income Fund
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at
value (Note 1)............ $682,901,125 $635,654,762 $233,276,126 $63,622,018
Cash........................ 650 622 936 --
Other assets................ 74,249 59,699 24,302 7,795
Receivables:
Investment securities
sold.................... -- 7,828,515 --
Interest.................. 9,924,070 8,686,126 3,068,332 887,587
Receivable from affiliate
(Note 2)................ 11,000 14,000 8,000 23,000
Fund shares sold.......... 634,306 330,800 209,000 --
------------ ------------ ------------ -----------
Total Assets.......... 693,545,400 652,574,524 236,586,696 64,540,400
------------ ------------ ------------ -----------
LIABILITIES:
Payable for investment
securities purchased...... 12,320,760 -- -- --
Payable for Fund shares
redeemed.................. 534,318 18,302,483 -- --
Dividends payable........... 3,316,965 2,911,908 1,108,808 303,575
Accrued liabilities: (Note
2)
Other..................... 71,740 59,150 34,119 19,186
------------ ------------ ------------ -----------
Total Liabilities..... 16,243,783 21,273,541 1,142,927 322,761
------------ ------------ ------------ -----------
NET ASSETS:
Paid in capital............. 644,848,771 591,392,973 224,439,493 61,016,908
Accumulated undistributed
net investment income..... 8,496 6,281 2,449 1,097
Accumulated net realized
gain on investment
transactions.............. 5,333,959 11,278,543 1,105,720 210,573
Net unrealized appreciation
of investments............ 27,110,391 28,623,186 9,896,107 2,989,061
------------ ------------ ------------ -----------
Net Assets................ $677,301,617 $631,300,983 $235,443,769 $64,217,639
============ ============ ============ ===========
Shares of beneficial interest
outstanding ($.001 par
value; unlimited number of
shares authorized).......... 105,054,206 58,168,121 32,934,530 6,397,977
Net asset value, maximum
offering price and
redemption price per share
(net assets/shares
outstanding)................ $6.45 $10.85 $7.15 $10.04
============ ============ ============ ===========
Cost of investments.......... $655,790,734 $607,031,576 $223,380,019 $60,632,957
============ ============ ============ ===========
</TABLE>
56
See notes to financial statements.
<PAGE> 59
...........................
<TABLE>
<CAPTION>
VISTA MUTUAL FUNDS
STATEMENT OF OPERATIONS
For the period January 1, 1997* through August 31, 1997
- ---------------------------------------------------------------------------------------
Vista Select
-----------------------------------------------------
Intermediate New York New Jersey
Tax Free Tax Free Tax Free Tax Free
Income Fund Income Fund Income Fund Income Fund
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME: (Note 1C)....... $25,363,609 $22,421,311 $ 8,191,454 $2,210,214
----------- ----------- ----------- ----------
EXPENSES: (Note 2)
Administration fees............. 663,880 622,337 221,990 60,015
Investment advisory fees........ 1,327,759 1,244,673 443,980 120,131
Custodian fees.................. 89,630 94,654 57,629 18,439
Printing and postage............ 3,343 2,932 2,082 808
Professional fees............... 16,703 16,386 10,260 10,685
Registration costs.............. 3,343 2,082 3,343 808
Transfer agent fees............. 20,677 20,466 11,442 9,003
Trustees fees and expenses...... 22,129 20,745 7,400 2,002
Other........................... 33,320 26,074 17,861 6,103
----------- ----------- ----------- ----------
Total expenses............ 2,180,784 2,050,349 775,987 227,994
----------- ----------- ----------- ----------
Less amounts waived (Note 2).... 2,081,269 1,961,664 723,599 198,585
Less amounts borne by Chase..... 11,000 14,000 8,000 23,000
----------- ----------- ----------- ----------
Net expenses.................. 88,515 74,685 44,388 6,409
----------- ----------- ----------- ----------
Net investment income......... 25,275,094 22,346,626 8,147,066 2,203,805
----------- ----------- ----------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain on investment
transactions.................. 5,333,959 11,278,543 1,105,720 210,573
Change in net unrealized
appreciation/depreciation on
investments................... 644,740 (5,547,725) 893,683 84,470
----------- ----------- ----------- ----------
Net realized and unrealized gain
on investments................ 5,978,699 5,730,818 1,999,403 295,043
----------- ----------- ----------- ----------
Net increase in net assets from
operations.................... $31,253,793 $28,077,444 $10,146,469 $2,498,848
=========== =========== =========== ==========
</TABLE>
- ------------------
* Funds commenced operations January 1, 1997.
57
See notes to financial statements.
<PAGE> 60
...........................
<TABLE>
<CAPTION>
VISTA MUTUAL FUNDS
STATEMENT OF CHANGES IN NET ASSETS
For the period January 1, 1997* through August 31, 1997
- --------------------------------------------------------------------------------------
Vista Select
-----------------------------------------------------
Intermediate New York New Jersey
Tax Free Tax Free Tax Free Tax Free
Income Fund Income Fund Income Fund Income Fund
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS:
Net investment income.......... $ 25,275,094 $ 22,346,626 $ 8,147,066 $ 2,203,805
Net realized gain on
investments.................. 5,333,959 11,278,543 1,105,720 210,573
Change in net unrealized
appreciation on
investments.................. 644,740 (5,547,725) 893,683 84,470
------------ ------------ ------------ -----------
Increase in net assets from
operations................. 31,253,793 28,077,444 10,146,469 2,498,848
------------ ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income........ (25,274,906) (22,346,674) (8,147,133) (2,203,799)
Increase from capital share
transactions (Note 5).......... 671,322,730 625,570,213 233,444,433 63,922,590
------------ ------------ ------------ -----------
Total increase (decrease).... 677,301,617 631,300,983 235,443,769 64,217,639
------------ ------------ ------------ -----------
NET ASSETS:
Beginning of period............ -- -- -- --
------------ ------------ ------------ -----------
End of period.................. $677,301,617 $631,300,983 $235,443,769 $64,217,639
============ ============ ============ ===========
</TABLE>
- ------------------
* Funds commenced operations January 1, 1997.
58
See notes to financial statements.
<PAGE> 61
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES--Mutual Fund Select Trust
(the "Trust") was organized as a Massachusetts business trust, and is registered
under the Investment Company Act of 1940, as amended, as an open-end,
non-diversified management investment company. Vista Select Tax Free Income Fund
("TFI"), Vista Select Intermediate Tax Free Income Fund ("ITFI") Vista Select
New York Tax Free Income Fund ("NYTFI"), and Vista Select New Jersey Tax Free
Income Fund ("NJTFI") (collectively the "Funds"), are separate portfolios of the
Trust.
The Funds were established in December 1996 for the conversion of the Chase
Manhattan Bank Common Trust Funds. Effective January 1, 1997, the Chase Common
Trust Funds contributed securities and other assets in exchange for shares of
the newly created Funds in a tax-free exchange.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
The following is a summary of significant accounting policies followed by
the Funds:
A. Valuation of investments--Fixed income securities (other than
short-term obligations), including listed issues, are valued using matrix
pricing systems of a major dealer in bonds which take into account factors
such as institutional-size trading in similar groups of securities, yield,
quality, coupon rate, maturity, type of issue, trading characteristics and
other market data, without exclusive reliance upon quoted exchange or
over-the-counter prices. Short-term debt securities with 61 days or more to
maturity at time of purchase are valued, through the 61st day prior to
maturity, at market value based on quotations obtained from market makers or
other appropriate sources; thereafter, the value on the 61st day is
amortized on a straight-line basis over the remaining number of days to
maturity. Short-term investments with 60 days or less to maturity at time of
purchase are valued at amortized cost, which approximates market.
B. Repurchase agreements--It is the Trust's policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government agency
securities. All collateral is held by the Trust's custodian bank,
sub-custodian or a bank with which the custodian bank has entered into a
sub-custodian agreement or is segregated in the Federal Reserve Book Entry
System. In connection with transactions in repurchase agreements, if the
seller defaults and the value of the collateral declines, or if the seller
enters into an insolvency proceeding, realization of the collateral by the
Trust may be delayed or limited.
C. Security transactions and investment income--Investment transactions
are accounted for on the trade date (the date the order to buy or sell is
executed). Securities gains and losses are calculated on the identified cost
basis. Interest income is determined on the basis of coupon interest
accrued, adjusted for amortization of premiums and accretion of discount.
D. Futures contracts--When a Fund enters into a futures contract, it makes
an initial margin deposit in a segregated account, either in cash or liquid
securities. Thereafter, the futures contract is marked to market and the
fund makes (or receives) additional cash payments daily to the broker.
Changes in the value of the contract are recorded as unrealized
appreciation/depreciation until the contract is closed or settled.
The Funds may enter into futures contracts only on exchanges or boards of
trade. The exchange or board of trade acts as the counterparty to each
futures transaction, therefore, the Fund's credit risk is limited to failure
of the exchange or board of trade.
As of August 31, 1997, the Funds had no outstanding futures contracts.
E. Federal income taxes--Each Fund is treated as a separate taxable entity
for Federal income tax purposes. The Trust's policy is to comply with the
provisions of the
59
...........................
<PAGE> 62
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders all of its distributable net investment income,
and net realized gain on investments. In addition, the Trust intends to make
distributions as required to avoid excise taxes. Accordingly, no provision
for Federal income or excise tax is necessary.
F. Distributions to shareholders--Dividends are distributed in the form of
additional shares of the Fund or, at the election of the shareholder, in
cash (subject to the policies of the Shareholder Servicing Agent) on the
last business day of the month. The net investment income of each Fund is
determined daily and (substantially all) is declared as a dividend to
shareholders of record at the time of such declaration. The amount of
dividends and distributions from net investment income and net realized
capital gains is determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
To the extent these "book/tax" differences are permanent in nature, (i.e.,
that they will result from other than timing of recognition -- "temporary
differences") such amounts are reclassified within the capital accounts
based on their federal tax-basis treatment. Dividends and distributions
which exceed net investment income or net realized capital gains for
financial reporting purposes but not for tax purposes are reported as
distributions in excess of net investment income or net realized capital
gains.
G. Allocation of expenses--Expenses directly attributable to a Fund are
charged to that Fund; other expenses are allocated proportionately among
each Fund within the Trust in relation to the net assets of each Fund or on
another reasonable basis.
H. Organization costs--Organization and initial registration costs
incurred in connection with establishing each of the Funds have been
deferred and are being amortized on a straight-line basis over a sixty month
period beginning with the commencement of operations of each Fund.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A. Investment advisory fee--Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank, ("Chase" or "Advisor") acts as the
investment advisor to the Funds. Chase is a direct wholly-owned subsidiary
of The Chase Manhattan Corporation. As investment advisor, Chase supervises
the investments of the Funds and for such services is paid a fee. The fee is
accrued daily and paid monthly at an annual rate equal to 0.30% of each
Fund's average daily net assets. The Advisor voluntarily waived all of its
fees for the period ended August 31, 1997.
Chase Asset Management, Inc. ("CAM"), a registered investment advisor, is
the sub-investment advisor to each Fund, pursuant to a Sub-Investment
Advisory Agreement between CAM and Chase. CAM is a wholly owned subsidiary
of Chase and is entitled to receive a fee, payable by Chase from its
advisory fee, at an annual rate equal to 0.15% of each Fund's average daily
net assets.
B. Distribution and Sub-administration fees--Pursuant to a
Sub-administration Agreement, Vista Fund Distributors, Inc. ("VFD" or the
"Distributor"), a wholly-owned subsidiary of the BISYS Group Inc. (BISYS),
provides certain sub-administration services to the Trust, including
providing officers, clerical staff and office space for an annual fee of
0.05% of the average daily net assets of each Fund.
The Distributor voluntarily waived all of its Sub-administration fees for
the period ended August 31, 1997.
C. Administration fee--Pursuant to an Administration Agreement, Chase (the
"Administrator") provides certain administration services to the Trust at a
fee computed at an annual rate equal to 0.10% of the respective Fund's
average daily net assets. The Administrator voluntarily waived all of its
administration fees for the period ended August 31, 1997.
60
...........................
<PAGE> 63
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
D. Assumption of expenses--For the eight month period ended August 31,
1997, Chase voluntarily assumed the following expenses for TFI, ITFI, NYTFI
and NJTFI: $11,000; $14,000; $8,000 and $23,000, respectively.
E. Other--Certain officers of the Trust are officers of VFD or of its
parent corporation, BISYS.
Chase provides portfolio accounting and custody services for the Funds.
Compensation for such services are presented in the Statement of Operations
as custodian fees. Chase voluntarily waived all of its custodian fees for
the period ended August 31, 1997.
3. INVESTMENT TRANSACTIONS--Purchases and sales of investments (excluding
short-term investments) were as follows:
<TABLE>
<CAPTION>
TFI ITFI NYTFI NJTFI
--------------------- --------------------- --------------------- ---------------------
<S> <C> <C> <C> <C>
Purchases (Excluding
U.S. Govt.)......... $341,118,301 $368,687,461 $96,281,296 $12,987,291
Sales (Excluding U.S.
Govt.).............. 307,342,439 361,957,148 67,047,759 8,413,875
</TABLE>
4. FEDERAL INCOME TAX MATTERS--For Federal income tax purposes, the cost and
unrealized appreciation/(depreciation) in value of the investment securities at
August 31, 1997, are as follows:
<TABLE>
<CAPTION>
TFI ITFI NYTFI NJTFI
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Aggregate
cost.......... $655,790,734 $607,031,576 $223,380,019 $60,632,957
------------ ------------ ------------ -----------
Gross unrealized
appreciation... 28,419,927 29,020,106 10,223,404 3,043,136
Gross unrealized
depreciation... (1,309,536) (396,920) (327,297) (54,075)
------------ ------------ ------------ -----------
Net unrealized
appreciation... $ 27,110,391 $ 28,623,186 $ 9,896,107 $ 2,989,061
============ ============ ============ ===========
</TABLE>
5. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST--Transactions in Shares of
Beneficial Interest were as follows:
61
...........................
<PAGE> 64
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
<TABLE>
<CAPTION>
Vista Select
Tax Free
Income Fund
---------------------------
1/1/97* Through 8/31/97
---------------------------
Amount Shares
------------ -----------
<S> <C> <C>
Shares sold.................................. $ 56,049,529 8,785,900
Shares issued in exchange for Common Trust
Fund Assets (see Note 1)................... 657,822,512 102,945,620
Shares issued in reinvestment of
distributions.............................. 2,958,341 465,140
Shares redeemed.............................. (45,507,652) (7,142,454)
------------ -----------
Net increase (decrease) in Trust shares
outstanding................................ $671,322,730 105,054,206
============ ===========
</TABLE>
<TABLE>
<CAPTION>
Vista Select
Intermediate Tax Free
Income Fund
---------------------------
1/1/97* Through 8/31/97
---------------------------
Amount Shares
------------ -----------
<S> <C> <C>
Shares sold.................................. $ 43,474,104 4,040,010
Shares issued in exchange for Common Trust
Fund Assets (see Note 1)................... 623,967,733 58,043,510
Shares issued in reinvestment of
distributions.............................. 2,891,919 269,514
Shares redeemed.............................. (44,763,543) (4,184,913)
------------ ----------
Net increase (decrease) in Trust shares
outstanding................................ $625,570,213 58,168,121
============ ==========
</TABLE>
<TABLE>
<CAPTION>
Vista Select
New York Tax Free
Income Fund
---------------------------
1/1/97* Through 8/31/97
---------------------------
Amount Shares
------------ -----------
<S> <C> <C>
Shares sold.................................. $ 44,574,872 6,303,649
Shares issued in exchange for Common Trust
Fund Assets (see Note 1)................... 203,444,466 28,694,565
Shares issued in reinvestment of
distributions.............................. 336,396 47,513
Shares redeemed.............................. (14,911,301) (2,111,197)
------------ ----------
Net increase (decrease) in Trust shares
outstanding................................ $233,444,433 32,934,530
============ ==========
</TABLE>
<TABLE>
<CAPTION>
Vista Select
New Jersey Tax Free
Income Fund
---------------------------
1/1/97* Through 8/31/97
---------------------------
Amount Shares
------------ -----------
<S> <C> <C>
Shares sold.................................. $ 8,147,090 815,047
Shares issued in exchange for Common Trust
Fund Assets (see Note 1)................... 56,929,494 5,698,648
Shares issued in reinvestment of
distributions.............................. 265,589 26,639
Shares redeemed.............................. (1,419,583) (142,357)
------------ ----------
Net increase (decrease) in Trust shares
outstanding................................ $ 63,922,590 6,397,977
============ ==========
</TABLE>
- ---------------
* Commencement of operations.
62
...........................
<PAGE> 65
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
6. CONCENTRATION OF CREDIT RISK--The Funds invest substantially all of their
assets in a diversified portfolio of debt obligations issued by states,
territories and possessions of the United States and by the District of
Columbia, and by their political subdivisions and duly constituted authorities.
NYTFI and NJTFI primarily invest in issuers in the States of New York and New
Jersey, respectively. TFI invested approximately 21.7% of its assets in issuers
in the State of New York. The issuer's abilities to meet their obligations may
be affected by economic or political developments in a specific state or region.
7. TRUSTEE COMPENSATION--The Funds have adopted an unfunded noncontributory
defined benefit pension plan covering all independent trustees of the Funds who
will have served as an independent trustee for at least five years at the time
of retirement. Benefits under this plan are based on compensation and years of
service. Pension expenses for the eight months ended August 31, 1997, included
in Trustees Fees and Expenses in the Statement of Operations, and accrued
pension liability included in Other Accrued Liabilities, in the Statement of
Assets and Liabilities were as follows:
<TABLE>
<CAPTION>
Accrued
Pension Pension
Expenses Liability
-------- -------
<S> <C> <C>
TFI............................................. $10,138 $34,398
ITFI............................................ 9,582 31,453
NYTFI........................................... 3,088 11,906
NJTFI........................................... 892 3,238
</TABLE>
63
...........................
<PAGE> 66
SELECTED DATA AND RATIOS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING For the
period January 1, 1997* through August 31, 1997
<TABLE>
<CAPTION>
Vista Select
--------------------------------------------------------------------
Intermediate New York New Jersey
Tax Free Tax Free Tax Free Tax Free
Income Fund Income Fund Income Fund Income Fund
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period.................. $ 6.39 $ 10.75 $ 7.09 $ 9.99
--------- --------- --------- -------
Income From Investment Operations:
Net investment income................................ 0.243 0.386 0.260 0.366
Net Gains or Losses in Securities (both realized and
unrealized)........................................ 0.060 0.100 0.060 0.050
--------- --------- --------- -------
Total from Investment Operations..................... 0.303 0.486 0.320 0.416
--------- --------- --------- -------
Less Distributions:
Dividends from net investment income................. 0.243 0.386 0.260 0.366
--------- --------- --------- -------
Net Asset Value, End of Period........................ $ 6.45 $ 10.85 $ 7.15 $ 10.04
========= ========= ========= =======
Total Return.......................................... 4.86% 4.58% 4.62% 4.20%
Ratios/Supplemental Data Net Assets, End of Period
(000 omitted)........................................ $ 677,302 $ 631,301 $ 235,444 $64,218
Ratios to Average Net Assets:#
Ratio of Expenses.................................. 0.02% 0.02% 0.03% 0.02%
Ratio of Net Investment Income..................... 5.73% 5.40% 5.52% 5.52%
Ratio of Expenses Without Waivers and Assumption of
Expenses......................................... 0.49% 0.50% 0.53% 0.57%
Ratio of Net Investment Income Without Waivers and
Assumption of Expenses........................... 5.26% 4.92% 5.02% 4.97%
Portfolio Turnover Rate............................... 48% 60% 32% 14%
</TABLE>
- ---------------
* Commencement of operations.
# Short periods have been annualized.
See notes to financial statements.
64
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<PAGE> 67
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of
Mutual Fund Select Trust
In our opinion, the accompanying statement of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the selected per share data and ratios for a share of
beneficial interest outstanding present fairly, in all material respects, the
financial position of Vista Select Tax Free Income Fund, Vista Select New York
Tax Free Income Fund, Vista Select Intermediate Tax Free Income Fund and Vista
Select New Jersey Tax Free Income Fund (separate portfolios of Mutual Fund
Select Trust, hereafter referred to as the "Trust") at August 31, 1997, the
results of each of their operations, the changes in each of their net assets and
the selected per share data and ratios for a share of bneficial interest
outstanding for the period January 1, 1997 (commencement of operations) through
August 31, 1997, in conformity with generally accepted accounting principles.
These financial statements and selected per share data and ratios for a share of
beneficial interest outstanding (hereafter referred to as "financial
statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at August
31, 1997 by correspondence with the custodian and the application of alternative
auditing procedures where securities purchased had not been received, provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
October 14, 1997
65
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<PAGE> 68
(unaudited)
VISTA SELECT TAX FREE INCOME FUND (TFI)
VISTA SELECT INTERMEDIATE TAX FREE INCOME FUND ("ITFI")
VISTA SELECT NEW YORK TAX FREE INCOME FUND (NYTFI)
VISTA SELECT NEW JERSEY TAX FREE INCOME FUND ("NJTFI")
- ---------------------------------------------------------------------
Certain tax information regarding the Vista Mutual Funds is required to be
provided to shareholders based upon the Funds income and distributions for the
taxable year ended August 31, 1997. The information and distributions reported
in this letter may differ from the information and distributions taxable to the
shareholders for the calendar year ending December 31, 1997. The information
necessary to complete your income tax returns for the calendar year ending
December 31, 1997 will be received under separate cover.
FOR THE FISCAL YEAR ENDED AUGUST 31, 1997.
- All of the dividends paid from net investment income are 100% exempt
from Federal income tax for TFI, ITFI, NYTFI and NJTFI, respectively.
- For shareholders who are subject to the Alternative Minimum Tax, the
income from private activities bonds issued after August 7, 1986,
which may be considered a tax preference item, was 3.46%, 0.00%, 0.71%
and 2.44% for TFI, ITFI, NYTFI and NJTFI, respectively.
66
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<PAGE> 69
VISTA SERVICE CENTER
P.O. BOX 419392
KANSAS CITY, MO 64179
INVESTMENT ADVISER, ADMINISTRATOR,
SHAREHOLDER AND FUND SERVICING AGENT
AND CUSTODIAN
The Chase Manhattan Bank
DISTRIBUTOR
Vista Fund Distributors, Inc.
TRANSFER AGENT
DST Systems, Inc.
LEGAL COUNSEL
Simpson Thacher & Bartlett
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
Vista Mutual Funds are distributed by Vista Fund Distributors, Inc., which is
unaffiliated with The Chase Manhattan Bank. Chase and its respective affiliates
receive compensation from the Vista Funds for providing investment advisory and
other services.
This report is submitted for the general information of the shareholders of the
funds. It is not authorized for distribution to prospective investors in the
funds unless preceded or accompanied by a prospectus.
To obtain a prospectus for any of the Vista Funds, call 1-800-34-VISTA. The
prospectus contains more complete information, including charges and expenses.
Please read it carefully before you invest or send money.
VSTF-2-1097
[BANNER]
