[FRONT COVER]
AUGUST 31, 1999
SELECT TAX FREE
INCOME FUND
SELECT INTERMEDIATE
TAX FREE INCOME FUND
SELECT NEW YORK
INTERMEDIATE TAX
FREE INCOME FUND
SELECT NEW JERSEY
TAX FREE INCOME
FUND
Chase Vista
Select Tax Free Funds
ANNUAL REPORT
[CHASE VISTA FUNDS Logo]
ARSTF-2-1099
<PAGE>
Inside Front Cover
Highlights
o The US economy continued its record expansion during the reporting year as
unemployment fell to a 28-year low.
o After fears of a global economic downturn led the Fed to cut interest rates
three times early in the reporting period, the central bank subsequently
reversed course amid signs that a global recovery was underway.
o Although there were no sustained signs of inflationary pressures, long-term
interest rates began to rise in February and ended the reporting year higher.
Municipal bond yields were not immune to the effects of higher interest rates,
and prices fell as a result.
CONTENTS
<TABLE>
<S> <C>
Chairman's Letter 3
Chase Vista Select Tax Free Income Fund 4
Fund Commentary o Portfolio of Investments
Chase Vista Select Intermediate Tax Free Income Fund 21
Fund Commentary o Portfolio of Investments
Chase Vista Select New York Intermediate
Tax Free Income Fund 39
Fund Commentary o Portfolio of Investments
Chase Vista Select New Jersey Tax Free Income Fund 52
Fund Commentary o Portfolio of Investments
Financial Statements 61
Notes to Financial Statements 64
Financial Highlights 68
</TABLE>
- --------------------------------------------------------------------------------
INVESTMENTS IN THE FUNDS ARE NOT DEPOSITS OF, OR GUARANTEED OR
ENDORSED BY, THE CHASE MANHATTAN BANK, AND THE SHARES ARE NOT INSURED
BY THE FDIC, FEDERAL RESERVE BOARD OR ANY OTHER GOVERNMENT AGENCY.
INVESTMENTS IN MUTUAL FUNDS INVOLVE RISK, INCLUDING POSSIBLE LOSS OF
THE PRINCIPAL AMOUNT INVESTED.
- --------------------------------------------------------------------------------
<PAGE>
Chase Vista Select Funds
Chairman's Letter
October 10, 1999
Dear Shareholder:
We are pleased to present this annual report for the Chase Vista Select Tax
Free Funds for the year ended August 31, 1999. Inside you will find information
on the performance of each fund along with a report from the portfolio
management team.
Fixed Income Markets Driven by Changing Perceptions of Global Economy
One of the major economic and investing trends of the 1990s has been
globalization, and there is no doubt that the increasing interconnectedness of
economies around the world was a major factor in fixed income markets during
the reporting year.
The reporting year began with the Federal Reserve dramatically cutting interest
rates in order to avoid a global credit crunch created by a number of factors.
These included the ongoing effects of the Asian financial crisis, the breakdown
of the Russian financial system, continued sluggishness in Japan and Europe, and
currency and credit difficulties in Latin America. The combination of these
factors created a flight to the quality of U.S. Treasury securities and pushed
the yield on the benchmark 30-year bond to a low of 4.72% on October 5, 1998.
By the second half of the reporting period, signs of recovery in other parts of
the world, combined with ongoing strength in the U.S., drove interest rates
higher as bond market participants feared that the U.S. economy would overheat
and the Fed would begin hiking interest rates. Despite the fact that inflation
remained under control, the Fed did indeed begin to raise short-term rates
while the bond market pushed the benchmark 30-year Treasury to a reporting year
high of 6.28% on August 12, 1999. As the period ended with confirmation of
improvement in foreign economies, the fact that U.S. growth showed few signs of
abating led to further negative sentiment in fixed income markets, which was
compounded by the fact that the Fed appeared likely to hike rates further.
As an investor in a Chase Vista Select Tax Free Fund, you enjoyed competitive
dividend yields during the reporting year. Our management team did an excellent
job protecting the overall value of your investment despite rising rates and
falling prices, and we are confident that our disciplined investment process
and experienced managers will continue to deliver strong relative performance
and competitive levels of tax-free income in the future. We appreciate the
confidence you have placed in us and look forward to serving your investment
needs well into the future.
Sincerely yours,
/s/ Fergus Reid
Fergus Reid
3
<PAGE>
Chase Vista Select Tax Free Income Fund
as of August 31, 1999
(unaudited)
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 1/1/97
Newspaper symbol TF Inc
Net assets $744 Million
Average maturity 17.0 years
Average duration 8.3 years
Average quality 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.
Average Maturity/Quality
|------|------|------|
| | | X | High
|------|------|------|
| | | | Med.
|------|------|------|
| | | | Low
|------|------|------|
Short Int. Long
4
<PAGE>
Chase Vista Select Tax Free Income Fund
as of August 31, 1999
(unaudited)
How the Fund Performed
Chase 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 -.63% for the year ended August 31, 1999.
This compares to a return of -1.73% for the Lipper General Municipal Debt Funds
Average and .50% for the unmanaged Lehman Municipal Bond Index.
How the Fund Was Managed
With its longer-than-benchmark duration, the Fund benefited as interest rates
continued their sharp decline in September and early October of 1998 in
response to dramatic action by the Fed to loosen monetary policy in light of
global economic concerns. However, rates on municipal bonds fell less sharply
than those on Treasuries with comparable maturities and by early October the
average 30-year tax-exempt municipal bond was providing yields that were
actually higher than that of the taxable 30-year US Treasury bond.
The management team took advantage of the unusually high relative rates of
municipal bonds by extending the Fund's duration (and hence its interest rate
sensitivity) and over-weighting New York bonds whose yields were higher (and
prices were lower) than those of other areas. By the end of October, with
supply increasing even more than expected, the management team maintained
duration and focused on increasing quality, a move which began to pay off as
1998 ended. When supply sputtered in early 1999, the Fund's longer duration
once again proved beneficial.
In early February, the management team's relative value analysis led it to cut
duration to take advantage of steepness in the 10 to 15 year part of the yield
curve. While this area of the curve was subsequently hurt by unexpected selling
by crossover buyers (pensions, life insurance companies and arbitrage accounts
that move quickly among markets), the Fund maintained its disciplined investing
approach as the yield advantage in the middle part of the yield curve became
even more pronounced. This focus had the net affect of reducing duration.
As the reporting year came to a close, the management team's shorter relative
duration and continued focus on the 10-year part of the yield curve had begun
to be a positive factor in performance.
Where the Fund May Be Headed
Moving into the new reporting year, the Fund has begun to slowly lower duration
and concentrate purchases in the 10 to 15 year range, where greater than 90% of
the yield curve can be obtained without undertaking commensurate long bond
risk. Given that a higher interest rate environment is typically attractive to
retail investors, the Fund intends to remain focused on those securities most
attractive to these buyers in order to maintain maximum liquidity.
5
<PAGE>
Chase Vista Select Tax Free Income Fund
as of August 31, 1999
(unaudited)
How Much of the Fund Was Invested
[PIE CHART]
Investments (98.6%)
Cash/Other (1.4%)
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the stock markets, tends to
be more volatile than the long-term trend.
<TABLE>
<CAPTION>
1 Year 5 Years 10 Years
------ ------- --------
<S> <C> <C>
-0.63% 5.80% 6.89%
</TABLE>
Past performance is not predictive of future performance. Investment return and
principal value will fluctuate with market conditions. When shares are
redeemed, they may be worth more or less than their original cost.
The quoted performance of Chase Vista Select Tax Free Income Fund includes
performance of a predecessor account for the period dating back to 8/31/89 and
prior to the fund's commencement of operations on 1/1/97. Returns are adjusted
to reflect historical expenses at the levels indicated (absent reimbursements)
in the Expense Summary for the Fund as disclosed in the Prospectus. The account
was not registered with the Securities and Exchange Commission and, therefore,
was not subject to the investment restrictions imposed by law on registered
mutual funds. If the account had been registered, the account's performance may
have been adversely affected. Also, the Fund is currently waiving certain fees.
This voluntary waiver may be modified or terminated at any time, which would
reduce returns.
6
<PAGE>
Chase Vista Select Tax Free Income Fund
as of August 31, 1999
(unaudited)
10-Year Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Visa Select Tax Free Income Fund compared to
its key benchmarks. This is where you see the Fund's long-term trend. This
chart is for illustrative purposes only.
[PLOT POINTS FOR LINE CHART]
<TABLE>
<CAPTION>
Chase Vista Lipper General
Select Tax Free Lehman Muni Debt
Income Fund Muni Bond Index Funds Avg.
<S> <C> <C> <C>
1989 10000 10000 10000
1990 10616.1 10642.5 10477.3
1991 11819.4 11898 11707.1
1992 13134.1 13228.5 13041.6
1993 14630.5 14841.3 14657.3
1994 14696.7 14862.9 14484.4
1995 15785.9 16181.2 15544.5
1996 16603.7 17027.1 16273.9
1997 17992.3 18604.7 17713.2
1998 19609.3 20214.2 19164.4
1999 19484.9 20314.9 18848.3
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less than
their original cost.
Any capital gain on the principal investment is subject to Federal income tax.
Some investors may also be subject to the Alternative Minimum Tax and certain
state and local taxes. This chart illustrates comparative performance for
$10,000 invested in shares of Chase Vista Select Tax Free Income Fund, the
Lehman Municipal Bond Index and the Lipper General Municipal Debt Funds Average
for the ten years ended August 31, 1999. 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 broad-based total return
benchmark for the long-term, investment grade tax-exempt bond markets. Bonds
included in the Lehman Municipal Bond Index are representative of the market. An
individual cannot invest in the index.
The Lipper General Municipal Debt Funds Average represents the average
performance of a universe of 267 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 Chase Vista Select Tax Free Income Fund includes
performance of a predecessor account for the period dating back to 8/31/89 and
prior to the Fund's commencement of operations on 1/1/97. Returns are adjusted
to reflect historical expenses at the levels indicated (absent reimbursements)
in the Expense Summary for the Fund as disclosed in the Prospectus. The account
was not registered with the Securities and Exchange Commission and, therefore,
was not subject to the investment restrictions imposed by law on registered
mutual funds. If the account had been registered, the account's performance may
have been adversely affected. Also, the Fund is currently waiving certain fees.
This voluntary waiver may be modified or terminated at any time, which would
reduce returns.
7
<PAGE>
Chase Vista Select Tax Free Income Fund
Portfolio of Investments August 31, 1999
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ---------------------------------------------------------------
Long-Term Municipal Bonds -- 97.0%
- ---------------------------------------------------------------
<S> <C> <C>
Arizona -- 0.9%
$ 5,300 Pima County, Arizona, Unified School
District, No. 1, Tucson, GO,
7.50%, 07/01/10 $ 6,341
--------
California -- 10.4%
California State,
2,000 GO, 6.50%, 11/01/09 2,264
3,950 GO, 10.00%, 09/01/99 3,950
1,000 Ser. B, GO, 10.00%, 08/01/02 1,158
1,000 Veterans Bond, Ser. AM,
GO, 9.00%, 10/01/05 1,235
21,000 California Statewide Community
Development Authority, Sherman
Oaks Project, Ser. A, Rev., 5.00%,
08/01/22 19,307
7,000 Corona, California, Public Financing
Authority, Water Utility
Improvements, Rev., 4.75%, 09/01/28 6,009
4,000 Los Angeles, California, Harbor
Department, Rev., 7.60%, 10/01/18 4,910
Metropolitan Water District,
Southern California,
6,235 Ser. A, GO, 5.25%, 03/01/14 6,255
20,000 Ser. A, Rev., 5.00%, 07/01/26 18,188
3,000 Modesto, California, Irrigation District
Financing Authority, Ser. A,
Rev., 6.00%, 10/01/15 3,144
9,930 Pomona, California, Unified School
District, Ser. A, GO, 6.15%,
08/01/15 10,707
--------
77,127
--------
Colorado -- 5.2%
1,190 Adams County, Colorado School
District No. 012, GO, 6.20%,
12/15/10 1,258
</TABLE>
See notes to financial statements.
8
<PAGE>
Chase Vista Select Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- --------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
Colorado Water Resources & Power
Development Authority,
$ 1,000 Ser. A, Rev., 5.25%, 09/01/10 $ 1,013
1,695 Ser. A, Rev., 5.25%, 09/01/11 1,704
1,560 Ser. A, Rev., 5.25%, 09/01/13 1,549
10,000 Denver, Colorado, City & County
Special Facilities, United Air Lines
Project, Ser. A, Rev., 6.88%,
10/01/32 10,367
6,000 Garfield Pitkin & Eagle Counties,
Colorado School District No. Re 1
Roarge, GO, 6.60%, 06/15/04~ 6,594
1,000 Jefferson County, Colorado School
District No. R-001, 1985 Ser. B,
GO, 9.00%, 12/15/99 1,015
Platte River Power Authority, Colorado,
3,050 Ser. DD, Rev., 6.00%, 06/01/05 3,263
4,400 Ser. DD, Rev., 6.00%, 06/01/06 4,727
1,620 Ser. DD, Rev., 6.00%, 06/01/07 1,744
6,050 Westminster, Colorado, Special Purpose
Post Project, Ser. B, Rev., 5.13%,
12/01/16 5,786
--------
39,020
--------
Connecticut -- 0.6%
4,600 Connecticut State Housing Finance
Authority, Housing Mortgage
Financing Program, Ser. C1,
Rev., 6.60%, 11/15/23 4,832
--------
Delaware -- 0.8%
5,000 Delaware State Economic Development
Authority, Osteopathic Hospital
Association of Delaware, Ser. A,
Rev., 6.90%, 01/01/18 5,722
35 Sussex County, Delaware, Single
Family Mortgage, Residential,
Rev., 9.38%, 02/01/17 35
--------
5,757
--------
</TABLE>
See notes to financial statements.
9
<PAGE>
Chase Vista Select Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
Florida -- 5.6%
$ 4,225 Broward County, Florida Resource
Recovery, SES. Broward Co. LP
South Project, Rev., 7.95%,
12/01/08 $ 4,384
2,200 Dade County, Florida, Special
Obligation, Miami Beach
Convention Center Project, Special
Tax, 8.63%, 12/01/07 2,661
5,000 Daytona Beach, Florida, Water &
Sewer, Ser. 1978, Rev., 6.75%,
11/15/07 5,422
5,000 Florida State, Board of Education,
Lottery, Ser. C, Rev., 4.50%,
07/01/18 4,286
3,670 Greater Orlando Aviation Authority,
Orlando Florida Airport Facilities,
Ser. A, Rev., 6.50%, 10/01/12 3,910
3,205 Hillsborough County, Florida, Aviation
Authority, Tampa International
Airport, Ser. B, Rev., 6.00%,
10/01/18 3,389
Orange County, Florida Health
Facilities Authority, Orlando
Regional Health Care,
4,425 Ser. A, Rev., 6.25%, 10/01/12 4,818
2,310 Ser. C, Rev., 6.25%, 10/01/12 2,515
3,000 Orange County, Florida Tourist
Development, Ser. A, Rev., 6.50%,
10/01/10 3,227
Reedy Creek Improvement District,
Florida,
3,980 Ser. A, GO, 5.25%, 06/01/11 4,013
3,185 Ser. A, GO, 5.25%, 06/01/12 3,194
--------
41,819
--------
</TABLE>
See notes to financial statements.
10
<PAGE>
Chase Vista Select Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- ------------------------------------------------------------
<S> <C> <C>
Georgia -- 6.6%
$ 5,000 Burke County, Georgia, Development
Authority PCR, Oglethorpe Power
Co., Rev., 8.00%, 01/01/03~ $ 5,683
10,000 Dalton, Georgia, Development
Authority, Rev., 5.50%, 08/15/26 9,753
7,650 De Kalb County, Georgia, Housing
Authority Apartment Development,
Fox Hollow Apartments,
Rev., 7.00%, 05/15/07~ 8,665
9,000 Fulton County, Georgia, Development
Authority, Special Facilities, Delta
Airlines Inc. Project, Rev., 5.45%,
05/01/23 8,039
15 Georgia State Residential Financing
Authority, Single Family Insured
Mortgage, Ser. A, Rev., 8.40%,
12/01/18 15
Metropolitan Atlanta Rapid Transit
Authority, Georgia,
5,000 Second Indenture, Ser. A,
Rev., 6.90%, 07/01/04~ 5,603
10,485 Ser. P, Rev., 6.25%, 07/01/20 11,370
--------
49,128
--------
Hawaii -- 0.8%
5,000 Honolulu, Hawaii, City & County,
Ser. A, GO, 7.35%, 07/01/08 5,800
--------
Illinois -- 0.8%
Illinois Health Facilities Authority,
862 Refunded, Ser. A, Rev., 7.90%,
08/15/03~ 948
1,554 Unrefunded Balance, Ser. A,
Rev., 7.90%, 08/15/03 1,559
3,250 Illinois Housing Development
Authority, Multi-Family, Ser.
1991-A, Rev., 8.25%, 07/01/16 3,492
--------
5,999
--------
</TABLE>
See notes to financial statements.
11
<PAGE>
Chase Vista Select Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ---------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- ---------------------------------------------------------------
<S> <C> <C>
Kentucky -- 1.2%
$ 8,000 Louisville & Jefferson County,
Kentucky, Metropolitan Sewer
District & Drain System, Ser. A,
Rev., 6.50%, 11/15/04~ $ 8,873
--------
Louisiana -- 1.3%
Orleans Parish, Louisiana, School Board,
2,000 Defeased, Rev., 8.85%, 02/01/06 2,448
2,000 Defeased, Rev., 8.90%, 02/01/07 2,498
4,000 GO, 7.50%, 09/01/05~ 4,598
--------
9,544
--------
Massachusetts -- 3.7%
3,500 Chelsea, Massachusetts, School Project
Loan Act 1948, GO, 6.50%,
06/15/04~ 3,863
2,750 Haverhill, Massachusetts, Unlimited Tax,
Ser. A, GO, 7.00%, 06/15/02~ 2,998
10,000 Massachusetts State, Consolidated Loan,
Ser. C, GO, 5.25%, 08/01/17 9,739
9,000 Massachusetts State, Port Authority,
Ser. B, Rev, 5.50%, 07/01/13 8,965
2,015 South Essex, Massachusetts, Sewer
District, Ser. B, GO, 6.75%,
06/01/04~ 2,244
--------
27,809
--------
Michigan -- 1.1%
8,500 Western Michigan University, Rev.,
5.13%, 11/15/17 8,061
--------
Montana -- 1.4%
Montana State, Long-Range Building
Program,
2,320 Ser. B, GO, 4.50%, 08/01/15 2,065
2,435 Ser. B, GO, 4.50%, 08/01/16 2,145
2,555 Ser. B, GO, 4.50%, 08/01/17 2,229
2,005 Ser. D, GO, 5.38%, 08/01/13 2,011
2,120 Ser. D, GO, 5.38%, 08/01/14 2,121
--------
10,571
--------
</TABLE>
See notes to financial statements.
12
<PAGE>
Chase Vista Select Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- ----------------------------------------------------------------
<S> <C> <C>
New Jersey -- 7.0%
$ 5,215 New Jersey Economic Development
Authority, Educational Testing
Service, Ser. B, Rev., 6.25%,
05/15/05~ $ 5,736
New Jersey Sports & Exposition Authority,
565 Pre-Refunded, Ser. A, Rev., 6.50%,
03/01/02~ 605
1,500 State Guaranteed, Rev., 8.30%,
01/01/03 1,679
2,905 Unrefunded Balance, Ser. A,
Rev., 6.50%, 03/01/19 3,077
15,700 New Jersey State, Ser. D, GO, 8.00%,
02/15/07 18,795
5,000 New Jersey State, Highway Authority,
Garden State Parkway, Rev., 6.20%,
01/01/10 5,437
11,460 New Jersey State, Housing & Mortgage
Finance Agency, Ser. U, Rev.,
5.75%, 04/01/18 11,459
5,000 New Jersey State, Transportation Trust
Fund Authority, Transportation
Systems, Ser. B, Rev., 6.50%,
06/15/10 5,588
--------
52,376
--------
New York -- 25.5%
2,250 Dutchess County, New York, Resource
Recovery Agency, Solid Waste
Management, Ser. A, Rev., 7.50%,
01/01/00~ 2,323
4,000 Long Island Power Authority, New
York, Electric Systems, Ser. A,
Rev., 5.50%, 12/01/13 4,071
Metropolitan Transportation Authority
of New York,
2,500 Dedicated Tax Fund, Ser. A,
Rev., 4.75%, 04/01/28 2,139
3,450 Commuter Facilities, Ser. A,
Rev., 6.00%, 07/01/16 3,533
</TABLE>
See notes to financial statements.
13
<PAGE>
Chase Vista Select Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- --------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
$ 3,000 Nassau County, New York, IDA, Civic
Facilities, Hofstra University Project,
Rev., 6.75%, 08/01/01~ $ 3,201
New York City, New York,
2,000 Ser. A, GO, 5.38%, 08/01/15 1,945
12,000 Ser. A, GO, 6.25%, 08/01/08 13,069
4,000 Ser. B, GO, 6.50%, 08/15/10 4,357
20,000 Ser. F, GO, 5.25%, 09/15/10 20,217
10,000 Ser. F, GO, 5.38%, 08/01/09 10,251
5,000 Ser. H, GO, 5.00%, 03/15/21 4,489
New York City, New York, IDA,
3,500 Brooklyn Navy Yard Cogen
Partners Project, Rev., 6.20%,
10/01/22 3,547
5,000 Special Facilities, British Airways
PLC Project, Rev., 5.25%,
12/01/32 4,381
4,100 New York State, GO, 6.30%,
09/15/02~ 4,408
New York State, Dorm Authority,
2,500 Mental Health Services Facilities,
Ser. B, Rev., 5.00%, 02/15/24 2,234
4,500 University of Rochester, Ser. A,
Rev., 6.40%, 07/01/13 4,834
New York State Energy Research &
Development Authority, PCR,
2,000 Central Hudson Gas, Ser. B-1,
Rev., 7.38%, 10/01/14 2,066
6,000 Niagara Mohawk Power Corp.,
Ser. A, Rev., 7.20%, 07/01/29 6,659
New York State, Environmental
Facilities Corp., PCR, State Water
Revolving Fund,
2,000 Ser. B, Rev., 7.10%, 09/15/11 2,100
2,650 Ser. D, Rev., 6.85%, 11/15/11 2,937
</TABLE>
See notes to financial statements.
14
<PAGE>
Chase Vista Select Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- --------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
$ 3,000 New York State, Environmental
Quality, GO, 6.50%, 12/01/04~ $ 3,328
New York State, Housing Finance
Agency,
550 Health Facilities, Monroe County,
Ser. A, Rev., 7.63%, 05/01/05 581
4,000 State University Construction,
Ser. A, Rev., 7.90%, 11/01/06 4,552
New York State, Local Government
Assistance Corp.,
2,340 Ser. A, Rev., 7.00%, 04/01/02~ 2,540
5,500 Ser. C, Rev., 7.00%, 04/01/01~ 5,847
3,000 Ser. D, Rev., 7.00%, 04/01/02~ 3,256
New York State, Medical Care Facilities
Financing Agency,
2,780 Hospital & Nursing Home,
Insured Mortgage, Ser. C,
Rev., 6.25%, 08/15/12 2,918
4,000 Montefiore Medical Center, Insured
Mortgage, Ser. A, Rev., 5.75%,
02/15/25 3,979
2,000 Mental Health Services Facilities
Improvement, Ser. A, Special
Obligation, 8.30%, 05/01/04 2,304
4,000 New York State, Mortgage Agency,
Homeownership Mortgage, Ser. JJ,
Rev., 7.50%, 10/01/17 4,087
5,500 New York State, Thruway Authority,
General Purpose, Ser. C,
Rev., 6.00%, 01/01/05- 5,949
Port Authority of New York &
New Jersey,
1,100 Consolidated Bonds 52nd Ser.,
Rev., 9.00%, 11/01/14 1,109
6,270 Consolidated Bonds 78th Ser.,
Rev., 6.50%, 04/15/11 6,621
16,000 Consolidated Bonds 93rd Ser.,
Rev., 6.13%, 06/01/94 17,094
</TABLE>
See notes to financial statements.
15
<PAGE>
Chase Vista Select Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- ------------------------------------------------------------
<S> <C> <C>
Port Authority of New York &
New Jersey,
$ 4,000 Consolidated Bonds 109th Ser.,
Rev., 5.38%, 01/15/32 $ 3,809
10,000 Consolidated Bonds 114th Ser.,
Rev., 4.75%, 08/01/33 8,621
9,000 Triborough Bridge & Tunnel Authority,
New York, Convention Center
Project, Ser. E, Rev., 7.25%,
01/01/10 10,123
--------
189,479
--------
North Carolina -- 0.7%
6,145 North Carolina, Medical Care
Community Hospital, Pitt County
Memorial Hospital, Ser. A,
Rev., 4.75%, 12/01/28 5,150
--------
North Dakota -- 0.8%
5,000 Mercer County, North Dakota,
PCR, Antelope Valley Station,
Rev., 7.20%, 06/30/13 5,828
--------
Ohio -- 3.4%
7,000 Cleveland, Ohio, Public Power System,
First Mortgage, Ser. A, Rev., 7.00%,
11/15/04~ 7,925
2,000 Dublin, Ohio, Refunding & Public
Improvement, Ser. A, GO, 5.25%,
12/01/14 1,981
3,950 Ohio Housing Finance Agency,
Residential, Ser. C, Rev., 5.75%,
09/01/28 3,815
4,850 Ohio State, Public Facilities
Community, Higher Education
Capital Facilities, Ser. II-C,
Rev., 4.38%, 06/01/11 4,445
7,000 Ohio State, Turnpike Commission,
Ser. A, Rev., 5.50%, 02/15/24 6,935
--------
25,101
--------
</TABLE>
See notes to financial statements.
16
<PAGE>
Chase Vista Select Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- --------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
Oklahoma -- 2.2%
$ 3,000 Grand River Dam Authority,
Oklahoma, Rev., 5.50%, 06/01/09 $ 3,119
8,500 Oklahoma State, Turnpike Authority,
Second Ser., Ser. A, Rev., 5.25%,
01/01/13 8,512
5,000 Tulsa, Oklahoma, Metropolitan Utility
Authority, Rev., 5.75%, 09/01/19 5,035
--------
16,666
--------
Oregon -- 3.2%
5,780 Oregon State, Higher Education
Building, Ser. A, GO, 6.45%,
08/01/04~ 6,332
Portland, Oregon, Sewer Systems,
2,300 Ser. A, Rev., 5.00%, 06/01/14 2,218
11,565 Ser. A, Rev., 5.00%, 06/01/15 11,066
4,000 Salem, Oregon, Hospital Facilities
Authority, Salem Hospital,
Rev., 5.25%, 08/15/14 3,907
--------
23,523
--------
Pennsylvania -- 1.7%
1,000 Allegheny County, Pennsylvania, IDA,
Health Care Facilities, Presbyterian
Senior Care, Rev., 5.75%, 01/01/23 927
12,000 Delaware Valley, Pennsylvania, Regional
Finance Authority, Local
Government, Ser. A, Rev., 5.50%,
08/01/28 11,845
--------
12,772
--------
Puerto Rico -- 4.0%
2,500 Puerto Rico Commonwealth,
GO, 6.25%, 07/01/11 2,760
</TABLE>
See notes to financial statements.
17
<PAGE>
Chase Vista Select Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
$ 1,500 Puerto Rico Commonwealth, Highway
& Transportation Authority,
Refunded Balance, Ser. T,
Rev., 6.63%, 07/01/02~ $ 1,620
Puerto Rico Electric Power Authority,
7,000 Ser. EE, Rev., 4.75%, 07/01/24 6,063
5,000 Ser. Y, Rev., 7.00%, 07/01/07 5,739
Puerto Rico Industrial, Medical &
Environmental PCFFA,
6,675 PepsiCo Inc. Project, Ser. A,
Rev., 6.25%, 11/15/13 7,053
3,000 Warner Lambert Co. Project,
Rev., 7.60%, 05/01/14 3,098
3,000 Puerto Rico Public Buildings
Authority, Guaranteed, Government
Facilities, Ser. A, Rev., 6.25%,
07/01/11 3,312
--------
29,645
--------
South Carolina -- 2.2%
6,000 Richland County, South Carolina,
School District No. 001,
GO, 4.63%, 03/01/22 5,154
South Carolina Housing Finance
& Development Authority,
Homeownership Mortgage Purchase,
3,835 Ser. B, Rev., 7.80%, 07/01/09 3,916
2,000 Ser. B, Rev., 7.88%, 07/01/15 2,042
5,000 South Carolina State Public Service
Authority, Ser. A, Rev., 6.25%,
01/01/22 5,214
--------
16,326
--------
South Dakota -- 0.5%
3,000 Heartland Consumers Power District,
Rev., 7.00%, 01/01/16 3,425
385 South Dakota State Building Authority,
Rev., 10.50%, 09/01/00 408
--------
3,833
--------
</TABLE>
See notes to financial statements.
18
<PAGE>
Chase Vista Select Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
Tennessee -- 0.8%
$ 3,000 Knox County, Tennessee, Health,
Educational & Housing Facilities
Board, Rev., 5.63%, 04/01/29 $ 2,748
3,000 Metropolitan Government of Nashville
& Davidson Counties, Tennessee,
Water & Sewer Authority, Rev.,
5.20%, 01/01/13 2,966
--------
5,714
--------
Texas -- 4.4%
Austin, Texas Utility System,
2,000 Combined, Ser. A, Rev., 9.50%,
05/15/00~ 2,080
6,500 Rev., 6.00%, 11/15/13 6,930
2,000 Ser. A, Rev., 8.00%, 05/15/01~ 2,126
Dallas-Fort Worth Texas Regional
Airport,
2,115 Ser. A, Rev., 7.38%, 11/01/08 2,384
2,945 Ser. A, Rev., 7.38%, 11/01/09 3,320
2,000 Ser. A, Rev., 7.38%, 11/01/11 2,241
5,000 Houston, Texas, Higher Education
Finance Corp., Rice University
Project, Ser. A, Rev., 5.38%,
11/15/29 4,719
Houston, Texas Water Conveyance
System,
2,500 Ser. F, COP, 7.20%, 12/15/05 2,820
2,000 Ser. F, COP, 7.20%, 12/15/06 2,277
5,000 Katy, Texas, Independent School
District, Ser. A, GO, 4.75%,
02/15/24 4,289
--------
33,186
--------
Utah -- 0.2%
1,000 Sevier County, Utah, Sevier School
District, GO, 9.20%, 05/01/03 1,159
- -----------------------------------------------------------
Total Long-Term Municipal Bonds
(Cost $719,959) 721,439
- -----------------------------------------------------------
</TABLE>
See notes to financial statements.
19
<PAGE>
Chase Vista Select Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ---------------------------------------------------------
Short-Term Investments -- 2.1%
- ---------------------------------------------------------
<S> <C> <C>
Floating Rate Demand Note -- 0.1%
California -- 0.1%
$ 700 California Statewide Communities
Development Authority, John Muir/
Mt. Diablo Health, COP, 2.85%,
09/01/99 $ 700
--------
(Cost $700)
Shares
Money Market Funds -- 2.0%
7,641 Provident Municipal Cash Money
Market Fund 7,641
7,302 Provident Municipal Money Market
Fund 7,302
--------
Total Money Market Funds
(Cost $14,943) 14,943
- ---------------------------------------------------------
Total Short-Term Investments
(Cost $15,643) 15,643
- ---------------------------------------------------------
Total Investments -- 99.1%
(Cost $735,602) $737,082
- ---------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Index:
<S> <C> <C>
~ -- The maturity date shown is the date of the prerefunded call.
COP -- Certificate of Participation.
Dorm -- Dormitory.
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, 1999.
GO -- General Obligation Bond.
IDA -- Industrial Development Authority.
PCR -- Pollution Control Revenue.
PCFFA -- Pollution Control Facilities Financing Authority.
Rev. -- Revenue Bond.
</TABLE>
See notes to financial statements.
20
<PAGE>
Chase Vista Select
Intermediate Tax Free Income Fund
as of August 31, 1999
(unaudited)
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 Municipal Bond Index
Lehman 10 Year Municipal
Bond Index
Lipper Funds category Lipper Intermediate Municipal Debt
Funds Average
Inception date 1/1/97
Newspaper symbol IntmdTF
Net assets $729 Million
Average maturity 7.7 years
Average duration 5.9 years
Average quality 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.
Average Maturity/Quality
|------|------|------|
| | X | | High
|------|------|------|
| | | | Med.
|------|------|------|
| | | | Low
|------|------|------|
Short Int. Long
21
<PAGE>
Chase Vista Select
Intermediate Tax Free Income Fund
as of August 31, 1999
(unaudited)
How the Fund Performed
Chase Vista Select Intermediate Tax Free Income Fund, which seeks to provide
monthly dividends that are excluded from federal income tax through a portfolio
of higher-quality intermediate term municipal bonds, had a total return of
1.15% for the year ended August 31, 1999. This compares to a return of .25% for
the Lipper Intermediate Municipal Debt Funds Average and .50% for the unmanaged
Lehman Municipal Bond Index.
How the Fund Was Managed
With its longer-than-benchmark duration, the Fund benefited as interest rates
continued their sharp decline in September and early October of 1998 in
response to dramatic action by the Fed to loosen monetary policy in light of
global economic concerns. However, rates on municipal bonds fell less sharply
than those on Treasuries with comparable maturities and by early October the
average 30-year tax-exempt municipal bond was providing yields that were
actually higher than that of the taxable 30-year US Treasury bond.
The management team took advantage of the unusually high relative rates of
municipal bonds by extending the Fund's duration (and hence its interest rate
sensitivity) and over-weighting New York bonds whose yields were higher (and
prices were lower) than those of other areas. By the end of October, with
supply increasing even more than expected, the management team maintained
duration levels and focused on increasing quality, a move which began to pay
off as 1998 ended. When supply sputtered in early 1999, the Fund's long
duration once again proved beneficial.
In early February, the management team's relative value analysis led it to
extend duration by selling many of its maturities of three years and shorter to
take advantage of steepness in the 10 to 15 year part of the yield curve. While
this area of the curve was subsequently hurt by unexpected selling by crossover
buyers (pensions, life insurance companies and arbitrage accounts that move
quickly among markets), the Fund maintained its disciplined investing approach
as the yield advantage in the 10-year portion of the yield curve became even
more pronounced.
As the reporting year came to a close, the management team's continued focus on
the 10-year part of the yield curve had begun to be a positive factor in
performance.
Where the Fund May Be Headed
Moving into the new reporting year, the Fund has begun to reduce the overweight
in five to seven year maturities and purchase securities in the two to three
year range which will provide maximum liquidity entering year end.
22
<PAGE>
Chase Vista Select
Intermediate Tax Free Income Fund
as of August 31, 1999
(unaudited)
How Much of the Fund Was Invested
[PIE CHART]
Investment (97.9%)
Cash/Other (2.1%)
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see the
Fund's short-term performance, which, as with the stock markets, tends to be
more volatile than the long-term trend.
<TABLE>
<CAPTION>
1 Year 5 Years 10 Years
------ ------- --------
<S> <C> <C>
1.15% 5.84% 6.98%
</TABLE>
Past performance is not predictive of future performance. Investment return and
principal value will fluctuate with market conditions. When shares are
redeemed, they may be worth more or less than their original cost.
The quoted performance of Chase Vista Select Intermediate Tax Free Income Fund
includes performance of a predecessor account for the period dating back to
8/31/89 and prior to the Fund's commencement of operations on 1/1/97. Returns
are adjusted to reflect historical expenses at the levels indicated (absent
reimbursements) in the Expense Summary for the Fund as disclosed in the
Prospectus. The account was not registered with the Securities and Exchange
Commission and, therefore, was not subject to the investment restrictions
imposed by law on registered mutual funds. If the account had been registered,
the account's performance may have been adversely affected. Also, the Fund is
currently waiving certain fees. This voluntary waiver may be modified or
terminated at any time, which would reduce returns.
23
<PAGE>
Chase Vista Select
Intermediate Tax Free Income Fund
as of August 31, 1999
(unaudited)
10-Year Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista Select Intermediate Tax Free Income Fund
compared to its key benchmarks. This is where you see the Fund's long-term
trend. This chart is for illustrative purposes only.
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Chase Vista Lipper
Select Lehman Intermediate
Intermediate 10 Year Lehman Muni Debt
Tax Free Muni Bond Muni Bond Funds
Income Fund Index Index Avg.
<S> <C> <C> <C> <C>
1989 10000 10000 10000 10000
1990 10558.5 10614.1 10642.5 10565.1
1991 11831.3 11881.7 11898 11619.9
1992 13164.8 13180.9 13228.5 12754.8
1993 14673.5 14876.6 14841.3 14099.8
1994 14795.5 14985.7 14862.9 14238
1995 15975 16423.8 16181.2 15234.2
1996 16657.3 17151.7 17027.1 15830.5
1997 17974.7 18736.8 18604.7 16934.9
1998 19427 20344 20214.2 18119.1
1999 19650.4 20421.4 20314.9 18164.5
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less than
their original cost.
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 Chase Vista Select Intermediate Tax Free Income Fund, the Lehman Municipal
Bond Index, the Lehman 10 Year Municipal Bond Index and the Lipper Intermediate
Municipal Debt Funds Average for the ten years ended August 31, 1999. 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 on securities included in the benchmark.
The unmanaged Lehman Municipal Bond Index is a broad-based total return
benchmark for the long-term, investment grade tax-exempt bond markets. Bonds
included in the Lehman Municipal Bond Index are representative of the market.
An individual cannot invest in the index.
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 10 Year Municipal Bond Index are representative of the
market. An individual cannot invest in the index.
The Lipper Intermediate Municipal Debt Funds Average represents the performance
of 145 actively-managed tax-exempt intermediate 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 Chase Vista Select Intermediate Tax Free Income Fund
includes performance of a predecessor account for the period dating back to
8/31/89 and prior to the Fund's commencement of operations on 1/1/97. Returns
are adjusted to reflect historical expenses at the levels indicated (absent
reimbursements) in the Expense Summary for the Fund as disclosed in the
Prospectus. The account was not registered with the Securities and Exchange
Commission and, therefore, was not subject to the investment restrictions
imposed by law on registered mutual funds. If the account had been registered,
the account's performance may have been adversely affected. Also, the Fund is
currently waiving certain fees. This voluntary waiver may be modified or
terminated at any time, which would reduce returns.
24
<PAGE>
Chase Vista Select Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------
Long-Term Municipal Bonds -- 97.1%
- -------------------------------------------------------------
<S> <C> <C>
Alabama -- 1.4%
Alabama State,
$ 660 GO, 7.00%, 08/01/00~ $ 692
7,650 Ser. A, GO, 5.50%, 10/01/02 7,919
1,320 Shelby County, Alabama, Board of
Education, Capital Outlay School
Warrants, 5.70%, 02/01/09 1,376
--------
9,987
--------
Arizona -- 1.6%
Maricopa County, Arizona School
District No. 004,
3,630 Project of 1995, Ser. D,
GO, 6.00%, 07/01/07 3,916
2,300 Ser. E, GO, 5.40%, 07/01/02~ 2,412
5,000 Maricopa County, Arizona School
District No. 028, Kyrene Elementary,
Ser. D, GO, 6.00%, 07/01/01~ 5,166
--------
11,494
--------
California -- 1.9%
7,105 California State, GO, 6.50%, 09/01/10 8,024
5,000 Los Angeles County, California Public
Works Financing Authority, Regional
Park & Open Space District,
Rev., 6.00%, 10/01/04~@ 5,477
--------
13,501
--------
Colorado -- 0.6%
4,000 Eagle Garfield & Routt Counties,
Colorado School District No. Re
50J, GO, 6.13%, 12/01/04~ 4,370
--------
Connecticut -- 1.4%
Connecticut State Special Tax
Obligation, Transportation
Infrastructure,
4,735 Ser. A, Rev., 5.40%, 06/01/09 4,886
5,000 Ser. B, Rev., 6.50%, 10/01/10 5,591
--------
10,477
--------
</TABLE>
See notes to financial statements.
25
<PAGE>
Chase Vista Select Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
Delaware -- 0.1%
$ 635 Delaware Transportation Authority,
Transportation System, Rev., 5.63%,
07/01/05 $ 663
--------
Florida -- 4.3%
2,000 Dade County, Florida Aviation, Ser. B,
Rev., 6.40%, 10/01/06 2,184
Florida State, Board of Education
Capital Outlay Public Education,
5,245 Ser. B, GO, 6.00%, 06/01/06 5,657
10,600 Ser. B, GO, 6.70%, 06/01/01~ 11,162
2,675 Florida State, Broward County
Expressway Authority, Ser. A,
GO, 6.50%, 07/01/03 2,681
2,000 Florida State, Department of
Corrections, Okeechobee
Correctional Facilities, COP, 6.00%,
03/01/08 2,141
5,000 Lakeland, Florida, Electric & Water,
Rev., 5.50%, 10/01/06~ 5,320
2,350 Miami-Dade County, Florida, Aviation,
Ser. A, Rev., 5.25%, 10/01/07 2,390
--------
31,535
--------
Georgia -- 1.4%
2,000 Georgia State, Ser. B, GO, 5.75%,
08/01/02 2,084
5,000 Georgia, Municipal Electric Authority,
Power, Ser. DD, Rev., 7.00%,
01/01/08@ 5,674
2,500 Paulding County, Georgia, School
District, GO, 5.00%, 02/01/01 2,530
--------
10,288
--------
Hawaii -- 0.7%
Honolulu, Hawaii, City & County,
2,500 Ser. A, GO, 7.30%, 07/01/03 2,741
2,000 Ser. A, GO, 7.35%, 07/01/06 2,285
--------
5,026
--------
</TABLE>
See notes to financial statements.
26
<PAGE>
Chase Vista Select Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- --------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
Illinois-- 5.0%
Chicago, Illinois, Metropolitan Water
Reclamation District, Greater
Chicago,
$ 1,500 Capital Improvement Bonds,
GO, 7.00%, 01/01/08 $ 1,709
4,400 GO, 5.50%, 12/01/08 4,591
7,200 GO, 5.95%, 12/01/07 7,753
Chicago, Illinois, O'Hare International
Airport,
3,000 General Airport, Second Lien,
Ser. A, Rev., 6.75%, 01/01/06 3,319
6,055 Passenger Facilities Charge, Ser. A,
Rev., 5.38%, 01/01/07 6,249
Illinois State,
1,320 GO, 5.50%, 08/01/06 1,379
10,000 GO, 5.50%, 04/01/10 10,282
1,000 Regional Transportation Authority
of Illinois, Ser. A, Rev., 7.30%,
11/01/00- 1,058
--------
36,340
--------
Indiana -- 2.7%
5,500 Indiana Municipal Power Agency,
Power Supply Systems, Ser. B,
Rev., 5.80%, 01/01/08 5,819
2,485 Indiana State Office Building
Community Facilities, Ser. A,
Rev., 5.00%, 07/01/04 2,536
7,315 Indianapolis, Indiana, Gas Utility,
Distribution Systems, Ser. A,
Rev., 5.75%, 08/15/08 7,739
3,000 Indianapolis, Indiana, Local Public
Improvements Bond Bank, Ser. A,
Rev., 6.50%, 01/01/08 3,316
--------
19,410
--------
</TABLE>
See notes to financial statements.
27
<PAGE>
Chase Vista Select Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
Kansas -- 0.3%
$ 2,000 Kansas State, Turnpike Authority,
Rev., 5.25%, 09/01/01 $ 2,043
--------
Kentucky -- 0.7%
4,400 Kentucky State, Property & Buildings
Community, Project No. 60,
Rev., 5.50%, 10/01/08 4,569
590 Owensboro Kentucky, Electric Light &
Power, Rev., 10.50%, 01/01/04 649
--------
5,218
--------
Maryland -- 1.9%
Maryland State Stadium Authority,
Lease, Convention Center
Expansion,
3,335 Rev., 5.75%, 12/15/08 3,515
3,535 Rev., 5.80%, 12/15/09 3,692
6,500 Maryland State Transportation
Authority, Transportation Facilities
Project, Rev., 5.80%, 07/01/06 6,929
--------
14,136
--------
Massachusetts -- 6.9%
5,000 Chelsea, Massachusetts, School Project
Loan Act 1948, GO, 5.90%,
06/15/04~ 5,390
Massachusetts Bay Transportation
Authority, General Transportation
Systems,
10,000 Ser. A, Rev., 5.40%, 03/01/08 10,372
1,000 Ser. A, Rev., 7.00%, 03/01/08 1,145
Massachusetts State,
12,500 Consolidated Loan, Ser. A,
GO, 5.00%, 03/01/07 12,703
3,600 Consolidated Loan, Ser. C,
GO, 6.70%, 11/01/04~ 3,999
5,000 Ser. A, GO, 5.75%, 08/01/10 5,291
4,400 Ser. B, GO, 6.50%, 08/01/08 4,859
</TABLE>
See notes to financial statements.
28
<PAGE>
Chase Vista Select Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
$ 3,000 Massachusetts State, Housing Finance
Agency, Residential Development,
Ser. C, Rev., 6.45%, 05/15/04 $ 3,164
Southeastern Massachusetts University
Building Authority,
1,980 Ser. A, Rev., 5.90%, 05/01/09 2,095
1,000 Ser. A, Rev., 5.90%, 05/01/10 1,050
--------
50,068
--------
Michigan -- 3.2%
5,250 Michigan State, Hospital Finance
Authority, Ser. A, Rev., 7.50%,
09/15/01~ 5,686
3,565 Michigan State, Underground Storage
Tank Financial Assurance Authority,
Ser. I, Rev., 5.75%, 05/01/10 3,710
Wayne Charter County, Michigan,
Detroit Metropolitan Wayne
County,
10,000 Ser. A, Rev., 5.25%, 12/01/06 10,205
3,780 Ser. A, Rev., 5.50%, 12/01/07 3,898
--------
23,499
--------
Minnesota -- 0.7%
5,000 Minnesota State, GO, 6.00%,
08/01/02~ 5,241
--------
Missouri -- 0.3%
2,470 Missouri State, Environmental
Improvement & Energy Resource
Authority, Water Pollution, State
Revolving Funds, Ser. A,
Rev., 5.25%, 01/01/11 2,487
--------
Montana -- 0.4%
3,000 Montana State Board Investment,
Payroll Tax, Workers Compensation
Project, Rev., 6.50%, 06/01/03 3,173
--------
</TABLE>
See notes to financial statements.
29
<PAGE>
Chase Vista Select Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- ------------------------------------------------------------
<S> <C> <C>
Nebraska -- 1.9%
$ 2,635 American Public Energy Agency,
Nebraska, Public Gas Agency
Project, Ser. A, Rev., 5.25%,
06/01/11 $ 2,623
11,000 Omaha Public Power District,
Nebraska, Electric, Ser. C,
Rev., 5.40%, 02/01/08@ 11,375
--------
13,998
--------
Nevada -- 3.7%
7,000 Clark County, Nevada, School District,
GO, 5.25%, 06/15/09 7,123
2,415 Henderson, Nevada, Water and Sewer,
Ser. A, GO, 5.50%, 09/01/08 2,516
Nevada State,
1,000 GO, 6.75%, 07/01/03 1,022
5,390 Ser. A, GO, 5.00%, 07/01/10 5,345
5,000 Ser. A, GO, 5.60%, 07/15/06 5,226
2,000 Ser. C, GO, 6.50%, 05/01/05 2,183
Nevada State, Municipal Bond Bank,
1,000 GO, 7.20%, 11/01/04 1,059
1,660 Project, No. 20-23-A, GO, 7.00%,
07/01/00 1,673
1,000 Project, No. 20-23-A, GO, 7.20%,
07/01/02 1,008
--------
27,155
--------
New Hampshire -- 0.8%
New Hampshire Municipal Bond
Bank,
4,535 Ser. C, Rev., 5.75%, 08/15/10 4,741
1,250 Ser. C, Rev., 5.75%, 08/15/11 1,299
--------
6,040
--------
New Jersey -- 10.2%
3,245 Elizabeth, New Jersey, GO, 6.25%,
08/15/08 3,533
10,000 New Jersey Building Authority, State
Building, Rev., 5.75%, 06/15/09 10,606
</TABLE>
See notes to financial statements.
30
<PAGE>
Chase Vista Select Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
New Jersey Economic Development
Authority, Market Transition Facility,
Sr. Lien,
$ 955 Ser. A, Rev., 5.80%, 07/01/08 $ 999
8,800 Ser. A, Rev., 5.80%, 07/01/09 9,202
New Jersey State, Transportation Trust
Fund Authority, Transportation
Systems,
3,000 Ser. A, Rev., 5.50%, 06/15/09* 3,123
3,000 Ser. A, Rev., 5.50%, 06/15/10* 3,113
7,000 Ser. B, Rev., 5.50%, 06/15/09 7,246
6,455 Ser. B, Rev., 6.00%, 06/15/07 6,962
New Jersey State, Turnpike Authority,
3,420 Rev., 5.70%, 05/01/13 3,555
730 Rev., 10.38%, 01/01/03 810
3,005 Ser. G, Rev., 5.75%, 01/01/09 3,126
New Jersey State, Wastewater
Treatment Trust,
2,545 Ser. A, Rev., 7.00%, 05/15/06 2,880
2,910 Ser. A, Rev., 7.00%, 05/15/08 3,341
3,120 Ser. A, Rev., 7.00%, 05/15/09 3,600
4,995 Ser. C, Rev., 6.25%, 05/15/05 5,412
5,520 Ser. C, Rev., 6.88%, 06/15/07 6,257
335 Trenton, New Jersey, GO, 6.25%,
08/15/03 358
--------
74,123
--------
New Mexico -- 0.3%
2,075 Gallup, New Mexico, PCR, Plains
Electric Generation, Rev., 6.40%,
08/15/05 2,197
--------
New York -- 19.0%
Long Island Power Authority,
New York Electric Systems,
5,500 Rev, 5.25%, 04/01/10 5,558
4,000 Ser. A, Rev., 5.50%, 12/01/08 4,176
4,595 Ser. A, Rev., 6.00%, 12/01/07 4,967
</TABLE>
See notes to financial statements.
31
<PAGE>
Chase Vista Select Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
Metropolitan Transportation Authority
of New York, Transportation
Facilities,
$ 4,000 Ser. J, Rev., 6.38%, 07/01/02~ $ 4,299
5,000 Ser. K, Rev., 6.25%, 07/01/05 5,410
Municipal Assistance Corp. for
New York City,
7,020 Ser. E, Rev., 6.00%, 07/01/06 7,552
3,000 Ser. H, Rev., 5.00%, 07/01/08 3,023
2,000 Ser. N, Rev., 5.25%, 07/01/07 2,059
1,250 Ser. O, Rev., 5.25%, 07/01/07 1,287
3,500 New York City, New York, Housing
Development Corp., Growth &
Income Sector, Residential, Royal
Charter, Rev., 9.75%, 04/01/00~ 3,654
2,000 New York City, New York, IDA,
Special Facilities, Terminal One
Group Association Project,
Rev., 5.50%, 01/01/02 2,036
New York State,
6,000 Ser. B, GO, 5.60%, 08/15/07 6,291
5,000 Ser. B, GO, 5.70%, 08/15/10 5,184
New York State, Dorm Authority,
225 Pooled Capital Program,
Rev., 7.80%, 12/01/05 230
770 St. John's University, Rev., 6.70%,
07/01/04 816
5,500 State University Educational
Facilities, Rev, 5.50%, 05/15/06 5,702
2,800 State University Educational
Facilities, Ser. A, Rev., 5.50%,
05/15/06 2,903
New York State, Environmental
Facilities Corp., PCR, State Water
Revolving Fund,
6,000 Ser. A, Rev., 5.75%, 06/15/08 6,369
230 Ser. A, Rev., 6.90%, 06/15/02 244
1,200 Ser. D, Rev., 6.55%, 03/15/08 1,260
</TABLE>
See notes to financial statements.
32
<PAGE>
Chase Vista Select Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- ------------------------------------------------------------
<S> <C> <C>
$ 4,915 New York State, Housing Finance
Agency, Housing Project Mortgage,
Ser. A, Rev., 5.40%, 11/01/05 $ 5,077
6,000 New York State, Local Government
Assistance Corp., Ser. A,
Rev., 6.00%, 04/01/08 6,459
180 New York State, Medical Care Facilities
Financing Agency, Rev., 7.38%,
08/15/03 184
905 New York State, Mortgage Agency,
Homeowner Mortgage, Ser. EE-3,
Rev., 7.70%, 10/01/10 933
400 New York State, Power Authority,
General Purpose, Ser. C,
Rev., 9.50%, 01/01/01 409
New York State, Thruway Authority,
Highway & Bridge Trust Fund,
1,320 Ser. A, Rev, 5.30%, 04/01/07 1,363
4,000 Ser. A, Rev, 5.60%, 04/01/04~ 4,256
5,700 Ser. B, Rev, 6.00%, 04/01/04~ 6,158
New York State, Thruway Authority,
Service Contract, Local Highway
& Bridge,
8,000 Rev., 5.00%, 04/01/02 8,108
5,000 Rev., 5.10%, 04/01/08 4,980
10,000 Rev., 5.20%, 04/01/09 9,950
3,200 Rev., 5.25%, 04/01/02 3,262
7,500 Rev., 5.25%, 04/01/03 7,667
3,910 Port Authority of New York & New
Jersey, Consolidated Bonds 112th
Ser., Rev., 5.00%, 12/01/05 3,964
1,500 Suffolk County, New York, IDA,
Nissequogue Cogen Partners Facility,
Rev., 4.88%, 01/01/08 1,442
990 Westchester County, New York, IDA,
Resource Recovery, Resco Co. Project,
Ser. A, Rev., 5.60%, 07/01/07 1,032
--------
138,264
--------
</TABLE>
See notes to financial statements.
33
<PAGE>
Chase Vista Select Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
North Dakota -- 0.8%
North Dakota State, Municipal Bond
Bank, State Revolving Fund
Program,
$ 1,055 Ser. A, Rev., 5.50%, 10/01/04 $ 1,103
1,380 Ser. A, Rev., 5.50%, 10/01/05 1,444
1,450 Ser. A, Rev., 5.50%, 10/01/06 1,516
1,535 Ser. A, Rev., 5.50%, 10/01/07 1,603
--------
5,666
--------
Ohio -- 2.7%
4,000 Montgomery County, Ohio, Solid
Waste, Rev., 5.50%, 11/01/10 4,108
Ohio State, Building Authority, State
Facilities,
1,420 Administration Building Fund,
Ser. A, Rev., 6.00%, 10/01/06 1,531
3,360 Adult Correctional, Ser. A,
Rev., 5.75%, 10/01/08 3,515
Ohio State, Turnpike Commission,
6,000 Ser. A, Rev., 5.40%, 02/15/09 6,168
4,275 Ser. A, Rev., 6.00%, 02/15/07 4,596
--------
19,918
--------
Oregon -- 0.5%
3,500 Washington County, Oregon School
District, No. 003, Hillsboro,
GO, 6.00%, 11/01/05~ 3,768
--------
Pennsylvania -- 1.3%
2,945 Pennsylvania Infrastructure Investment
Authority, Pennvest Loan Pool
Program, Ser. A, Rev., 5.00%,
09/01/09 2,945
6,000 Pennsylvania State, Higher Educational
Facilities Authority, Temple
University, Ser. 1, Rev., 6.50%,
04/01/01~ 6,330
--------
9,275
--------
</TABLE>
See notes to financial statements.
34
<PAGE>
Chase Vista Select Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- -----------------------------------------------------------------------
<S> <C> <C>
Puerto Rico -- 2.4%
Puerto Rico Commonwealth,
$ 10,000 GO, 5.50%, 07/01/08@ $ 10,528
5,500 GO, 5.50%, 07/01/09 5,768
1,440 Puerto Rico Industrial Medical &
Environmental PCFFA, Renasa Inc.,
Squibb Corp. Project, Rev., 6.50%,
07/01/04 1,476
--------
17,772
--------
Rhode Island -- 0.7%
5,000 Rhode Island State, Ser. A,
GO, 6.10%, 06/15/03 5,295
--------
Tennessee -- 1.5%
2,140 Metropolitan Government of Nashville
& Davidson Counties, Tennessee,
GO, 5.00%, 11/15/09 2,145
5,335 Tennergy Corp., Tennessee Gas,
Rev., 5.00%, 06/01/09 5,322
3,470 Tennessee State, Ser. B, GO, 5.00%,
05/01/01 3,522
--------
10,989
--------
Texas -- 5.0%
4,975 Houston, Texas, Water & Sewer
Systems, Ser. B, Rev.,
6.40%, 12/01/09 5,350
North East Independent School
District, Texas,
3,650 GO, 5.25%, 10/01/07 3,754
5,300 GO, 6.50%, 10/01/09 5,910
5,550 San Antonio, Texas, GO, 6.13%,
08/01/01~ 5,749
7,500 Texas State, Ser. A, GO, 6.00%,
10/01/09@ 8,076
Texas Water Development Board, State
Revolving Fund, Sr. Lien,
1,320 Rev, 6.20%, 07/15/05 1,402
3,000 Ser. A, Rev., 5.25%, 07/15/09 3,051
1,000 Ser. A, Rev., 5.63%, 07/15/11* 1,030
</TABLE>
See notes to financial statements.
35
<PAGE>
Chase Vista Select Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
$ 2,000 University of Texas, Permanent
University Fund, Rev., 6.30%,
07/01/01 $ 2,076
--------
36,398
--------
Utah -- 0.6%
3,915 Utah State Building Ownership
Authority, State Facilities Master
Lease Program, Ser. C,
Rev., 5.50%, 05/15/08 4,074
--------
Vermont -- 2.2%
4,100 Burlington, Vermont, Electric, Ser. A,
Rev., 6.38%, 07/01/09 4,527
3,475 Vermont Municipal Bond Bank, Ser. 1,
Rev., 5.40%, 12/01/07 3,615
Vermont State,
3,510 Ser. A, GO, 6.40%, 01/15/05~ 3,864
3,510 Ser. A, GO, 6.50%, 01/15/05~ 3,881
--------
15,887
--------
Virgin Islands -- 1.1%
5,000 Virgin Islands Public Finance
Authority, Ser. C, Rev., 5.50%,
10/01/06 5,088
3,070 Virgin Islands Water & Power
Authority, Electric System,
Rev., 5.25%, 07/01/07 3,087
--------
8,175
--------
Virginia -- 0.8%
5,515 Chesapeake Bay Bridge & Tunnel,
Commonwealth of Virginia, General
Resolution, Rev., 5.75%, 07/01/08 5,828
--------
Washington -- 2.0%
4,340 Grant County, Washington, Public
Utilities District No. 002, Electric,
Ser. G, Rev., 5.25%, 01/01/08 4,428
</TABLE>
See notes to financial statements.
36
<PAGE>
Chase Vista Select Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ---------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- ---------------------------------------------------------------
<S> <C> <C>
Washington State,
$ 6,675 Ser. B, GO, 5.00%, 01/01/07 $ 6,748
3,000 Ser. R, GO, 5.25%, 01/01/06 3,086
--------
14,262
--------
Wisconsin -- 4.1%
Wisconsin State,
6,000 GO, 6.20%, 05/01/06 6,504
5,600 Ser. 1, GO, 5.00%, 11/01/06 5,701
3,000 Ser. 1, GO, 5.00%, 11/01/07 3,040
Wisconsin State, Clean Water,
5,000 Ser. 2, Rev., 5.50%, 06/01/11 5,139
3,585 Ser. 2, Rev., 6.13%, 06/01/06 3,868
5,170 Wisconsin State, Transportation, Ser. B,
Rev., 5.25%, 07/01/09 5,257
--------
29,509
- ---------------------------------------------------------------
Total Long Term Municipal Bonds
(Cost $701,680) 707,549
- ---------------------------------------------------------------
Short Term Investments -- 3.1%
- ---------------------------------------------------------------
Floating Rate Demand Notes -- 1.6%
4,000 California State, Economic
Development Financing Authority,
Ser. C, Rev., 2.55%, 09/01/99 4,000
1,000 Delaware County, Pennsylvania, IDA,
PCR, BP Exploration & Oil,
Rev., 3.20%, 09/01/99 1,000
2,000 East Baton Rouge Parish, Louisiana,
PCR, Exxon Project, Rev., 2.80%,
09/01/99 2,000
New York City, New York,
200 Ser. B, Sub-Ser. B-2, GO, 2.80%,
09/01/99 200
200 Ser. B, Sub-Ser. B-4, GO, 2.80%,
09/01/99 200
2,100 New York City, New York, Municipal
Water Financing Authority, Water &
Sewer Systems, Ser. C, Rev., 2.80%,
09/01/99 2,100
</TABLE>
See notes to financial statements.
37
<PAGE>
Chase Vista Select Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------
Short-Term Investments -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
$ 2,000 Texas State, Water Development Board,
Ser. A, Rev., 3.00%, 09/01/99 $ 2,000
--------
Total Floating Rate Demand Notes
(Cost $11,500) 11,500
--------
Shares
Money Market Funds -- 1.5%
7,201 Provident Municipal Cash Money
Market Fund 7,201
3,704 Provident Municipal Money Market
Fund 3,704
--------
Total Money Market Funds
(Cost $10,905) 10,905
- -------------------------------------------------------------
Total Short Term Investments
(Cost $22,405) 22,405
- -------------------------------------------------------------
Total Investments -- 100.2%
(Cost $724,085) $729,954
- -------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
Index:
~ -- The maturity date shown is the date of the prerefunded call.
* -- When Issued security.
@ -- All or a portion of this security is segregated for When Issued
securities.
COP -- Certificate of Participation.
Dorm -- Dormitory.
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, 1999.
GO -- General Obligation Bond.
IDA -- Industrial Development Authority.
PCFFA -- Pollution Control Facilities Finance Authority.
PCR -- Pollution Control Revenue.
Rev. -- Revenue Bond.
</TABLE>
See notes to financial statements.
38
<PAGE>
Chase Vista Select
New York Intermediate Tax Free Income Fund
as of August 31, 1999
(unaudited)
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 Intermediate Municipal Debt
Funds Average
Inception date 1/1/97
Newspaper symbol NY TF
Net assets $295 Million
Average maturity 9.4 years
Average duration 6.4 years
Average quality 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.
Average Maturity/Quality
|------|------|------|
| | X | | High
|------|------|------|
| | | | Med.
|------|------|------|
| | | | Low
|------|------|------|
Short Int. Long
39
<PAGE>
Chase Vista Select
New York Intermediate Tax Free Income Fund
as of August 31, 1999
(unaudited)
How the Fund Performed
Chase Vista Select New York Intermediate Tax Free Income Fund, which seeks to
provide triple tax exempt income through a portfolio of higher-quality,
intermediate term municipal bonds, had a total return of .38% for the year
ended August 31, 1999. This compares to a return of .43% for the Lipper New
York Intermediate Municipal Debt Funds Average and .50% for the unmanaged
Lehman Municipal Bond Index.
How the Fund Was Managed
With its longer-than-benchmark duration, the Fund benefited as interest rates
continued their sharp decline in September and early October of 1998 in
response to dramatic action by the Fed to loosen monetary policy in light of
global economic concerns. The management team extended the Fund's duration (and
hence its interest rate sensitivity) further in October to take advantage of
the fact that the yields on New York municipal bonds were actually higher than
those on U.S. Treasuries of similar maturity, and as yields on New York issues
moved higher in expectation of a huge new issue from Long Island Power
Authority, the management team bought heavily with an eye on long-term yield.
When supply was subsequently even heavier than expected, the Fund initially
suffered from its aggressive duration, but the management team decided against
cutting duration by selling what were essentially irreplaceable, non-callable
higher yielding bonds and thereby realizing gains that would be taxable to
shareholders. Instead, the management team decided to ride through the
difficult period and focus on increasing quality and, by the end of 1998, this
focus on quality began to pay off and the Fund ended the calendar year
strongly. When supply sputtered in early 1999, the Fund's long duration once
again proved beneficial.
In early February, the management team's relative value analysis led it to
extend duration to take advantage of steepness in the 10 to 15 year part of the
yield curve. While this area of the curve was subsequently hurt by unexpected
selling by crossover buyers (pensions, life insurance companies and arbitrage
accounts that move quickly among markets), the Fund maintained its disciplined
investing approach as the yield advantage in the middle part of the yield curve
became even more pronounced.
As the reporting year came to a close, the management team's continued focus on
the 10-year part of the yield curve had begun to be a positive factor in
performance. The Fund also began investing in higher-yielding paper in an
effort to increase income. This final move proved doubly positive as the Fund
not only had more income with which to offset falling prices, but also
benefited from the fact that high-yield municipal bonds tend to have less
principal erosion than municipal issues of comparable maturity in a rising rate
environment.
Where the Fund May Be Headed
Moving into the new reporting year, the Fund has begun to reduce the overweight
in five to seven year maturities and purchase securities in the two to three
year range which will provide maximum liquidity entering year end.
40
<PAGE>
Chase Vista Select
New York Intermediate Tax Free Income Fund
as of August 31, 1999
(unaudited)
How Much of the Fund Was Invested
[PIE CHART]
Investments (98.3%)
Cash/Other (1.7%)
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see the
Fund's short-term performance, which, as with the stock markets, tends to be
more volatile than the long-term trend.
<TABLE>
<CAPTION>
1 Year 5 Years 10 Years
------ ------- --------
<S> <C> <C> <C>
0.38% 5.54% 6.72%
</TABLE>
Past performance is not predictive of future performance. Investment return and
principal value will fluctuate with market conditions. When shares are
redeemed, they may be worth more or less than their original cost.
The quoted performance of Chase Vista Select New York Intermediate Tax Free
Income Fund includes performance of a predecessor account for the period dating
back to 8/31/89 and prior to the Fund's commencement of operations on 1/1/97.
Returns are adjusted to reflect historical expenses at the levels indicated
(absent reimbursements) in the Expense Summary for the Fund as disclosed in the
Prospectus. The account was not registered with the Securities and Exchange
Commission and, therefore, was not subject to the investment restrictions
imposed by law on registered mutual funds. If the account had been registered,
the account's performance may have been adversely affected. Also, the Fund is
currently waiving certain fees. This voluntary waiver may be modified or
terminated at any time, which would reduce returns.
41
<PAGE>
Chase Vista Select
New York Intermediate Tax Free Income Fund
as of August 31, 1999
(unaudited)
10-Year Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista Select New York Intermediate Tax Free
Income Fund compared to its key benchmarks. This is where you see the Fund's
long-term trend. This chart is for illustrative purposes only.
[LINE CHART]
<TABLE>
<CAPTION>
Chase Vista Select Lipper New York
New York Intermediate Lehman Muni Intermediate Muni
Tax Free Income Fund Bond Index Debt Funds Avg.
<S> <C> <C> <C>
1989 10000 10000 10000
1990 10560.4 10642.5 10555.6
1991 11831.6 11898 11583.4
1992 13222 13228.5 12692
1993 14715.2 14841.3 13959.2
1994 14628.4 14862.9 14078.9
1995 15616.1 16181.2 15050.1
1996 16380.5 17027.1 15588
1997 17613.3 18604.7 16720.5
1998 19087.5 20214.2 17874.7
1999 19160.6 20314.9 17944.3
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less than
their original cost.
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 Chase Vista Select New York Intermediate Tax Free Income Fund, the Lehman
Municipal Bond Index and the Lipper New York Intermediate Municipal Debt Funds
Average for the ten years ended August 31, 1999. 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 on securities
included in the benchmark.
The unmanaged Lehman Municipal Bond Index is a broad-based 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 Intermediate Municipal Debt Funds Average represents the
performance of a universe of 17 actively-managed New York tax-exempt
intermediate municipal bond funds. Lipper is an independent mutual fund
performance monitor whose results are based on total return and do no reflect a
sales charge.
The quoted performance of Chase Vista Select New York Intermediate Tax Free
Income Fund includes performance of a predecessor account for the period dating
back to 8/31/89 and prior to the Fund's commencement of operations on 1/1/97.
Returns are adjusted to reflect historical expenses at the levels indicated
(absent reimbursements) in the Expense Summary for the Fund as disclosed in the
Prospectus. The account was not registered with the Securities and Exchange
Commission and, therefore, was not subject to the investment restrictions
imposed by law on registered mutual funds. If the account had been registered,
the account's performance may have been adversely affected. Also, the Fund is
currently waiving certain fees. This voluntary waiver may be modified or
terminated at any time, which would reduce returns.
42
<PAGE>
Chase Vista Select New York Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------
Long-Term Municipal Bonds -- 92.9%
- -------------------------------------------------------------
<S> <C> <C>
$ 2,000 Albany County, New York, Airport
Authority, Rev., 5.30%, 12/15/15 $ 1,929
1,120 Allegany County, New York, IDA,
Alfred University Civic Facility,
Rev., 5.25%, 08/01/11 1,125
2,000 Battery Park City Authority, New York,
Ser. A, Rev., 5.50%, 11/01/26 1,950
Erie County, New York,
885 Public Improvement, GO, 6.00%,
01/15/05 931
855 Ser. B, GO, 6.00%, 03/15/06 901
2,000 Erie County, New York, Water
Authority Improvement &
Extension, Rev., 5.75%, 12/01/08 2,069
Lindenhurst, New York, Unified Free
School District,
1,070 GO, 5.25%, 07/15/12 1,076
1,295 GO, 5.25%, 07/15/15 1,282
1,460 GO, 5.25%, 07/15/16 1,441
Long Island Power Authority,
New York, Electric Systems,
6,700 Rev., 5.00%, 04/01/09 6,700
2,000 Rev., 5.25%, 04/01/10 2,021
Longwood Central School District at
Middle Island, New York,
775 GO, 4.75%, 06/15/10 753
1,055 GO, 4.80%, 06/15/11 1,017
1,315 GO, 4.80%, 06/15/13 1,234
Metropolitan Transportation Authority
of New York,
500 Commuter Facilities, Ser. B,
Rev., 6.10%, 07/01/09 542
1,500 Commuter Facilities, Ser. O,
Rev., 5.10%, 07/01/00 1,516
2,000 Dedicated Tax Fund, Ser. A,
Rev., 5.50%, 04/01/16 1,993
</TABLE>
See notes to financial statements.
43
<PAGE>
Chase Vista Select New York Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- --------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
Metropolitan Transportation Authority
of New York,
$ 250 Transportation Facilities, Ser. C,
Rev., 4.75%, 07/01/16 $ 224
5,000 Transportation Facilities, Ser. C,
Rev., 5.25%, 07/01/10 5,051
Monroe County, New York, Public
Improvement,
2,680 GO, 4.38%, 06/01/07 2,609
2,315 GO, 4.50%, 06/01/09 2,226
1,400 GO, 4.50%, 06/01/10 1,327
100 GO, 6.00%, 03/01/01 103
4,400 GO, Escrowed to Maturity, 6.00%,
03/01/01 4,522
1,230 GO, 6.00%, 03/01/12 1,318
1,000 GO, 6.00%, 03/01/18 1,062
1,000 GO, 6.00%, 03/01/19 1,061
Municipal Assistance Corp. for City of
New York,
2,400 Ser. E, Rev., 6.00%, 07/01/05 2,573
6,740 Ser. E, Rev., 6.00%, 07/01/06 7,251
6,500 Ser. G, Rev., 6.00%, 07/01/08 7,012
Nassau County, New York, General
Improvement,
2,000 Ser. Q, GO, 5.20%, 08/01/12 1,970
1,800 Ser. R, GO, 5.13%, 11/01/03 1,848
Nassau County, New York, IDA, Civic
Facilities, Hofstra University Project,
2,010 Rev., 5.00%, 07/01/03 2,056
1,705 Rev., 5.00%, 07/01/06 1,737
4,740 Rev., 5.25%, 07/01/09 4,842
New York City, New York,
500 Ser. A, GO, 6.10%, 08/01/02 523
475 Ser. A, Prerefunded, GO, 6.38%,
08/01/02~ 509
1,025 Ser. A, Unrefunded Balance,
GO, 6.38%, 08/01/05 1,087
</TABLE>
See notes to financial statements.
44
<PAGE>
Chase Vista Select New York Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- ----------------------------------------------------------
<S> <C> <C>
New York City, New York,
$ 5,000 Ser. C, Sub-Ser. C-1, Prerefunded,
GO, 7.00%, 08/01/02~ $ 5,444
30 Ser. D, Prerefunded, GO, 7.65%,
02/01/02~ 33
30 Ser. D, Unrefunded Balance,
GO, 7.65%, 02/01/06 32
2,500 Ser. E, GO, 6.00%, 08/01/07 2,685
240 Ser. F, Unrefunded Balance,
GO, 8.25%, 11/15/02 262
2,500 Ser. G, GO, 5.75%, 02/01/04 2,611
925 Ser. H, Escrowed to Maturity,
GO, 6.88%, 02/01/02 981
75 Ser. H, Unrefunded Balance,
GO, 6.88%, 02/01/02 79
460 Ser. H, Prerefunded, GO, 7.00%,
02/01/02~ 495
40 Ser. H, Unrefunded Balance,
GO, 7.00%, 02/01/06 43
975 Ser. H, Prerefunded, GO, 7.10%,
02/01/02~ 1,051
25 Ser. H, Unrefunded Balance,
GO, 7.10%, 02/01/12 27
4,580 Ser. H, Sub-Ser. H-1, Unrefunded
Balance, GO, 5.50%, 08/01/01 4,684
New York City, New York, City
Municipal Water Financing
Authority Water & Sewer Systems,
595 Ser. A, Prerefunded, Rev., 7.00%,
06/15/01~ 630
405 Ser. A, Unrefunded Balance,
Rev., 7.00%, 06/15/09 427
5,000 Ser. B, Rev., 5.25%, 06/15/10 5,049
2,000 Ser. B, Rev., 5.50%, 06/15/27 1,950
1,000 New York City, New York, IDA, Civic
Facilities, New School for Social
Research, Ser. A, Rev., 5.75%,
09/01/15 1,019
</TABLE>
See notes to financial statements.
45
<PAGE>
Chase Vista Select New York Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- ------------------------------------------------------------
<S> <C> <C>
$ 5,000 New York City, New York, Transit
Authority, Ser. A, COP, 5.40%,
01/01/19 $ 4,862
New York City, New York, Transitional
Finance Authority, Future Tax,
1,300 2nd Ser., Ser. A, Rev., 5.00%,
08/15/12 1,266
1,975 2nd Ser., Ser. C, Rev., 5.00%,
05/01/17 1,847
3,000 2nd Ser., Ser. C, Rev., 5.25%,
05/01/15 2,934
1,750 New York City, New York, Trust
Cultural Resources, Museum
of Modern Art, Ser. A, Rev., 5.40%,
01/01/12 1,762
New York State,
1,000 GO, 2.75%, 07/01/04 922
1,245 GO, 5.25%, 03/01/09 1,268
1,000 GO, 7.00%, 11/15/00~ 1,056
1,500 GO, 7.10%, 11/15/00~ 1,586
1,000 GO, 7.13%, 11/15/00~ 1,058
600 GO, 7.50%, 11/15/00 625
5,000 Ser. F, GO, 5.25%, 09/15/11 5,008
New York State, Dorm Authority,
2,000 City University System, 3rd
General Reserve, Ser. 1,
Rev., 5.25%, 07/01/08 2,049
2,500 City University System, 3rd
General Reserve, Ser. 2, Rev.,
5.38%, 07/01/13 2,484
1,545 City University System, Ser. B,
Rev., 5.75%, 07/01/06 1,632
5,590 City University System, Ser. D,
Rev., 7.00%, 07/01/09 6,268
2,000 City University System, Special
Obligation, Ser. D, Rev., 5.75%,
07/01/07 2,123
</TABLE>
See notes to financial statements.
46
<PAGE>
Chase Vista Select New York Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- ------------------------------------------------------------
<S> <C> <C>
New York State, Dorm Authority,
$ 1,000 Fordham University, Rev., 7.20%,
07/01/00~ $ 1,048
910 Long Island University,
Rev., 5.00%, 09/01/12 873
1,020 Long Island University,
Rev., 5.13%, 09/01/10 1,014
1,345 Long Island University,
Rev., 5.25%, 09/01/11 1,339
1,000 Memorial Sloan Kittering Cancer
Center, Rev., 5.50%, 07/01/09 1,029
2,750 New York University, Rev., 6.38%,
07/01/07 2,898
2,000 New York University, Ser. A,
Rev., 5.75%, 07/01/09 2,118
1,000 New York University, Ser. A,
Rev., 5.75%, 07/01/15 1,040
2,015 Rockefeller University, Rev., 5.00%,
07/01/12 1,979
835 St. Agnes Hospital, Ser. A,
Rev., 5.10%, 02/15/10 816
1,000 St. Johns University, Rev., 6.88%,
07/01/01~ 1,067
2,065 State Service Contract, Albany
County, Rev., 5.25%, 04/01/12 2,009
840 State Service Contract, Albany
County, Rev., 5.50%, 04/01/08 859
1,000 State University Educational
Facilities, Ser. A, Rev., 5.25%,
05/15/11 1,003
2,380 State University Educational
Facilities, Ser. A, Rev., 5.50%,
05/15/06 2,492
3,500 State University Educational
Facilities, Ser. A, Rev., 5.50%,
05/15/10 3,585
1,250 State University Educational
Facilities, Ser. A, Rev., 7.30%,
05/15/00 1,281
</TABLE>
See notes to financial statements.
47
<PAGE>
Chase Vista Select New York Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ---------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- ---------------------------------------------------------
<S> <C> <C>
New York State, Dorm Authority,
$ 2,000 State University Educational
Facilities, Ser. C, Rev., 7.38%,
05/15/10 $ 2,291
1,000 Vassar College, Rev., 7.10%,
07/01/04~ 1,047
1,000 Vassar College, Rev., 7.13%,
07/01/10~ 1,048
5,000 New York State, Energy Research &
Development Authority, PCR, New
York State Electric & Gas Corp.,
Ser. E, Rev., 5.90%, 12/01/06 5,374
New York State, Environmental
Facilities Corp., PCR, State Water
Revolving Fund,
7,000 New York City Municipal Water,
Rev., 5.75%, 06/15/12 7,309
720 Ser. A, Rev., 7.25%, 06/15/10 769
1,900 Ser. E, Rev., 5.50%, 06/15/04 1,985
5,415 Ser. E, Rev., 6.00%, 06/15/12 5,810
New York State, Housing Finance
Agency,
1,615 Health Facilities, Monroe County,
Ser. A, Rev., 7.63%, 05/01/05 1,707
835 Prerefunded, Rev., 8.00%,
11/01/00~ 890
650 Service Contract Obligation,
Ser. A, Rev., 7.38%, 03/15/02~ 709
1,550 State University Construction,
Ser. A, Rev., 8.00%, 05/01/11 1,907
165 Unrefunded Balance, Rev., 8.00%,
11/01/08 173
New York State, Local Government
Assistance Corp.,
5,000 Ser. A, Rev., 5.25%, 04/01/14 4,915
2,000 Ser. A, Rev., 6.00%, 04/01/07 2,138
</TABLE>
See notes to financial statements.
48
<PAGE>
Chase Vista Select New York Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- --------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
New York State, Medical Care Facilities
Financing Agency,
$ 360 Prerefunded, Rev., 7.70%, 08/15/00~ $ 380
715 Ser. A, Rev., 5.40%, 08/15/04 741
35 Ser. C, Rev., 5.40%, 08/15/05 36
165 Unrefunded Balance, Rev., 7.70%,
08/15/03 174
4,985 New York State, Mortgage Agency,
Ser. 19, 4.45%, 10/01/15 4,985
3,400 New York State, Municipal Bond Bank
Agency, Special Program, Rochester,
Ser. A, 6.63%, 09/15/01~ 3,630
New York State, Thruway Authority,
3,215 Highway & Bridge Trust Fund,
Ser. B, Rev., 5.00%, 04/01/08 3,242
5,000 Ser. D, Rev., 5.25%, 01/01/21 4,689
500 Northern Mariana Islands, Public
School System Project, Ser. A,
GO, 3.70%, 10/01/03 487
1,045 Oneida County, New York,
GO, 5.50%, 03/15/11 1,072
2,105 Puerto Rico Commonwealth, Highway
& Transportation Authority, Ser. Z,
Rev., 6.25%, 07/01/07 2,319
2,000 Puerto Rico Commonwealth, Public
Improvements, GO, 5.00%,
07/01/05 2,033
Puerto Rico Electric Power Authority,
4,000 Ser. AA, Rev., 6.25%, 07/01/10 4,421
2,400 Ser. DD, Rev., 5.25%, 07/01/14 2,388
4,500 Ser. GG, Rev., 5.13%, 07/01/16 4,364
1,800 Ser. X, Rev., 6.00%, 07/01/11 1,883
2,180 Rochester, New York, Ser. A,
GO, 5.70%, 08/15/04 2,302
1,000 Suffolk County, New York, IDA,
Nissequogue Cogen Partners Facility,
Rev., 5.30%, 01/01/13 953
</TABLE>
See notes to financial statements.
49
<PAGE>
Chase Vista Select New York Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- ----------------------------------------------------------------
<S> <C> <C>
$ 5,000 Suffolk County, New York, Southwest
Sewer District, GO, 6.00%, 02/01/05 $ 5,337
1,065 Sullivan County, New York, Public
Improvement, GO, 5.00%, 03/15/08 1,071
210 Taconic Hills, New York, Central
School District at Craryville,
GO, 4.35%, 06/15/06 207
Triborough Bridge & Tunnel Authority,
New York,
2,000 Ser. A, Special Obligation,
Rev., 5.13%, 01/01/10 2,007
1,000 Ser. B, Rev., 5.00%, 01/01/20 921
7,125 Ser. Y, Rev., 6.00%, 01/01/12 7,612
Virgin Islands, Public Finance Authority,
1,000 Ser. C, Rev., 5.00%, 10/01/00 1,009
2,000 Ser. C, Rev., 5.00%, 10/01/01 2,018
3,075 Ser. C, Rev., 5.00%, 10/01/02 3,099
- ----------------------------------------------------------------
Total Long Term Municipal Bonds
(Cost $273,095) 273,545
- ----------------------------------------------------------------
Short Term Investments -- 5.9%
- ----------------------------------------------------------------
Floating Rate Demand Notes --3 .0%
2,670 New York City, New York, City
Municipal Water Financing
Authority Water & Sewer Systems,
Ser. C, Rev., 2.05%, 09/01/99 2,670
New York City, New York,
1,200 Ser. B, Sub-Ser. B-4, GO, 2.80%,
09/01/99 1,200
500 Ser. B, Sub-Ser. B-7, GO, 2.80%,
09/01/99 500
1,000 Sub-Ser. A-8, 2.80%, 09/01/99 1,000
New York State, Job Development
Authority, Special Purpose,
580 Ser. A-1 through A-13,
Rev., 3.20%, 09/01/99 580
355 Ser. A-1 through A-25,
Rev., 2.80%, 09/01/99 355
</TABLE>
See notes to financial statements.
50
<PAGE>
Chase Vista Select New York Intermediate Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------
Short-Term Investments -- (continued)
- -----------------------------------------------------------------
<S> <C> <C>
New York State, Job Development
Authority, Special Purpose,
$ 705 Ser. B-1 through B-9,
Rev., 3.20%, 09/01/99 $ 705
800 Ser. B-1 through B-21,
Rev., 3.20%, 09/01/99 800
600 New York State, Thruway Authority,
Floating Rate Receipts, Ser. SG 119,
Rev., 3.13%, 09/01/99 600
600 Port Authority of New York & New
Jersey, Special Obligation, Versatile
Structure, Ser. 2, Rev., 2.60%,
09/01/99 600
--------
Total Floating Rate Demand Notes
(Cost $9,010) 9,010
--------
Shares
Money Market Fund -- 2.9%
8,505 Provident New York Money Market
Fund 8,505
(Cost $8,505)
- -----------------------------------------------------------------
Total Short Term Investments
(Cost $17,515) 17,515
- -----------------------------------------------------------------
Total Investments -- 98.8%
(Cost $290,610) $291,060
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
Index:
~ -- The maturity date shown is the date of the prerefunded call.
COP -- Certificate of Participation.
Dorm -- Dormitory.
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, 1999.
GO -- General Obligation Bond.
IDA -- Industrial Development Authority.
PCR -- Pollution Control Revenue.
Rev. -- Revenue Bond.
</TABLE>
See notes to financial statements.
51
<PAGE>
Chase Vista Select
New Jersey Tax Free Income Fund
as of August 31, 1999
(unaudited)
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 Municipal Bond Index
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
Net assets $68 Million
Average maturity 12.4 years
Average duration 6.9 years
Average quality 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.
Average Maturity/Quality
|------|------|------|
| | X | | High
|------|------|------|
| | | | Med.
|------|------|------|
| | | | Low
|------|------|------|
Short Int. Long
52
<PAGE>
Chase Vista Select
New Jersey Tax Free Income Fund
as of August 31, 1999
(unaudited)
How the Fund Performed
Chase Vista Select New Jersey Tax Free Income Fund, which seeks to provide
monthly dividends excluded from gross income for federal tax purposes and
exempt from New Jersey personal income tax, had a total return of .37% for the
year ended August 31, 1999. This compares to a return of -1.13% for the Lipper
New Jersey Municipal Debt Funds Average and .50% for the unmanaged Lehman
Municipal Bond Index.
How the Fund Was Managed
With its longer-than-benchmark duration, the Fund benefited as interest rates
continued their sharp decline in September and early October of 1998 in response
to dramatic action by the Fed to loosen monetary policy in light of global
economic concerns. The management team extended the Fund's duration (and hence
its interest rate sensitivity) further in October to take advantage of the fact
that the yields on New Jersey municipal bonds were actually higher than those on
U.S. Treasuries of similar maturity.
Subsequently, while New Jersey supply remained relatively thin, general
municipal bond supply was even heavier than expected, causing the Fund to suffer
from its aggressive duration. However, the management team decided against
cutting duration by selling what were essentially irreplaceable, non-callable
higher yielding bonds and thereby realizing gains that would be taxable to
shareholders. Instead, the management team decided to ride through the difficult
period and focus on increasing quality and, by the end of the quarter, this
focus on quality began to pay off and the Fund ended the year strongly.
In early February, the management team's relative value analysis led it to
invest heavily in securities with maturities of 10 to 15 years to take
advantage of the steepness in this part of the yield curve. While performance
suffered when this area of the curve was subsequently hurt by unexpected
selling by crossover buyers (pensions, life insurance companies and arbitrage
accounts that move quickly among markets), the Fund maintained its disciplined
investing approach as the yield advantage in the 10-year portion of the yield
curve became even more pronounced.
In the final months of the reporting period, the Fund benefited from the
management team's ability to purchase diversified names at par and then sell
portions of these positions in the retail market when liquidity was thin. As
the period ended, the management team's focus on the 10 year part of the yield
curve had begun to be a positive factor in performance.
Where the Fund May Be Headed
Moving into the new reporting year, the Fund has begun to decrease duration by
selling bonds in the 10 year part of the yield curve.
53
<PAGE>
Chase Vista Select
New Jersey Tax Free Income Fund
as of August 31, 1999
(unaudited)
How Much of the Fund Was Invested
[PIE CHART]
Investments (98.9%)
Cash/Other (1.1%)
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see the
Fund's short-term performance, which, as with the stock markets, tends to be
more volatile than the long-term trend.
<TABLE>
<CAPTION>
Since Inception
1 Year 5 Years (5/1/90)
------ ------- --------
<S> <C> <C> <C>
0.37% 5.10% 6.04%
</TABLE>
Past performance is not predictive of future performance. Investment return and
principal value will fluctuate with market conditions. When shares are
redeemed, they may be worth more or less than their original cost.
The quoted performance of Chase 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.
54
<PAGE>
Chase Vista Select
New Jersey Tax Free Income Fund
as of August 31, 1999
(unaudited)
Life of Fund Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista Select New Jersey Tax Free Income Fund
compared to its key benchmarks. This is where you see the Fund's long-term
trend. This chart is for illustrative purposes only.
<TABLE>
<CAPTION>
Chase Vista Select Lipper New Jersey
New Jersey Tax Lehman Muni Lehman 7 Year Muni Debt
Free Income Fund Bond Index Muni Bond Index Funds Avg.
<S> <C> <C> <C> <C>
5/90 10000 10000 10000 10000
1990 10154.7 10087.9 10137.4 10046.8
1991 11114.5 11277.9 11240.3 11323.3
1992 12176.6 12539.1 12411.6 12559.4
1993 13227.9 14067.8 13729.3 14141.1
1994 13420.6 14088.3 13923.1 13939.7
1995 14420.3 15337.9 15147.8 14919.9
1996 14992.7 16139.7 15737.9 15609.9
1997 15906.4 17635 16963.7 16888.6
1998 17150.1 19160.6 18258.3 18240.1
1999 17214.2 19256.1 18531.3 18026.1
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less than
their original cost.
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
Chase Vista Select New Jersey Tax Free Income Fund, the Lehman Municipal Bond
Index, the Lehman 7 Year Municipal Bond Index and the Lipper New Jersey
Municipal Debt Funds Average from May 1, 1990 through August 31, 1999. 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 on securities included in the benchmark.
The unmanaged Lehman Municipal Bond Index is a broad-based total return
benchmark for the long-term, investment grade tax-exempt bond markets. Bonds
included in the Lehman Municipal Bond Index are representative of the market. An
individual cannot invest in the index.
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 57 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 Chase 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.
55
<PAGE>
Chase Vista Select New Jersey Tax Free Income Fund
Portfolio of Investments August 31, 1999
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------
Long-Term Municipal Bonds -- 95.7%
- -------------------------------------------------------------
<S> <C> <C>
$ 1,000 Bergen County, New Jersey, Utilities
Authority, Water Pollution Control,
Ser. B, Rev., 5.75%, 12/15/05 $ 1,066
500 Camden County, New Jersey, IAR,
Health Systems, Catholic Health
East, Ser. A, Rev., 5.25%, 11/15/12 498
1,000 Cherry Hill Township, New Jersey,
GO, 6.10%, 06/01/07 1,057
1,000 Delaware River & Bay Authority,
Delaware Authority, Rev., 5.20%,
01/01/10 1,009
825 East Orange, New Jersey, Board of
Education, COP, 5.50%, 08/01/12 841
570 Edison Township, New Jersey, School,
GO, 6.50%, 06/01/04 619
1,140 Hamilton Township, Atlantic County,
New Jersey School District,
GO, 5.88%, 12/15/07 1,206
1,000 Hunterdon, New Jersey, Central
Regional High School District,
GO, 5.40%, 05/01/09 1,030
2,060 Jersey City, New Jersey, General
Improvement, Ser. A, GO, 6.00%,
10/01/05 2,214
700 Middletown Township, New Jersey,
Board of Education, GO, 5.70%,
08/01/04 739
New Jersey Economic Development
Authority,
1,710 Market Transition Facility, Sr. Lien,
Ser. A, Rev., 5.80%, 07/01/08 1,788
1,200 Market Transition Facility, Sr. Lien,
Ser. A, Rev., 5.80%, 07/01/09 1,255
1,300 Trenton Office Complex,
Rev., 5.00%, 06/15/05 1,329
</TABLE>
See notes to financial statements.
56
<PAGE>
Chase Vista Select New Jersey Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ---------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- ---------------------------------------------------------------
<S> <C> <C>
New Jersey Health Care Facilities
Financing Authority,
$ 845 Cathedral Health, Ser. A,
Rev., 6.95%, 02/15/01 $ 878
850 Community Medical Center,
Kimball, Rev., 5.25%, 07/01/11 854
570 Society of the Valley Hospital,
Ser. C, Rev., 6.60%, 07/01/00 583
1,120 St. Elizabeth Hospital Obligation
Group, Rev., 6.00%, 07/01/14 1,089
New Jersey Sports & Exposition
Authority,
205 Prerefunded, Ser. A, Rev., 6.20%,
03/01/02~ 218
130 Prerefunded, Ser. A, Rev., 6.50%,
03/01/02~ 139
1,050 Unrefunded Balance, Ser. A,
Rev., 6.20%, 03/01/03 1,103
670 Unrefunded Balance, Ser. A,
Rev., 6.50%, 03/01/07 713
New Jersey State,
1,140 Ser. B, GO, 6.25%, 01/15/04 1,222
2,195 Ser. D, GO, 5.75%, 02/15/06 2,331
New Jersey State, Educational Facilities
Authority,
2,545 Drew University Issue, Ser. C,
Rev., 5.25%, 07/01/13 2,542
565 Fairleigh Dickinson University,
Ser. G, Rev., 4.88%, 07/01/04 554
1,000 Fairleigh Dickinson University,
Ser. G, Rev., 5.70%, 07/01/28 936
570 New Jersey State, Transportation Corp.,
COP, 6.20%, 10/01/02 602
New Jersey State, Transportation Trust
Fund, Transportation Systems,
420 Ser. A, Rev., 5.00%, 06/15/12 410
1,000 Ser. A, Rev., 5.25%, 06/15/05* 1,034
1,000 Ser. A, Rev., 5.50%, 06/15/10* 1,038
</TABLE>
See notes to financial statements.
57
<PAGE>
Chase Vista Select New Jersey Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
New Jersey State, Transportation Trust
Fund, Transportation Systems,
$ 500 Ser. A, Rev., 5.50%, 06/15/11 $ 511
1,000 Ser. A, Rev., 5.75%, 06/15/16* 1,038
New Jersey State, Turnpike Authority,
1,140 Ser. A, Rev., 5.80%, 01/01/02 1,173
1,140 Ser. A, Rev., 6.40%, 01/01/02 1,187
1,000 Ser. C, Rev., 6.25%, 01/01/10 1,037
2,000 Ser. C, Rev., 6.50%, 01/01/08 2,215
1,570 North Bergen Township, New Jersey,
GO, 5.00%, 08/15/11 1,556
1,140 North Jersey District Water Supply,
Wanaque South Project, Rev.,
5.50%, 07/01/03 1,187
1,140 Northwest Bergen County, New Jersey
Utilities Authority, Rev., 6.00%,
07/15/07 1,214
570 Ocean County, New Jersey, General
Improvement, GO, 6.38%,
04/15/03 609
Port Authority of New York &
New Jersey,
1,140 Consolidated Bonds 79th
Ser., Rev., 6.00%, 07/15/05 1,223
1,500 Consolidated Bonds 93rd
Ser., Rev., 6.13%, 06/01/94 1,603
3,000 Consolidated Bonds 114th
Ser., Rev., 4.75%, 08/01/33 2,586
1,600 Special Obligation, JFK
International Airport Terminal #6,
Rev., 6.25%, 12/01/08 1,740
3,000 Special Obligation, JFK
International Airport Terminal #6,
Rev., 6.25%, 12/01/09@ 3,260
1,200 Puerto Rico Commonwealth, Highway
& Transportation Authority, Rev.,
5.50%, 07/01/15@ 1,220
</TABLE>
See notes to financial statements.
58
<PAGE>
Chase Vista Select New Jersey Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------------
Long-Term Municipal Bonds -- (continued)
- -------------------------------------------------------------------
<S> <C> <C>
Puerto Rico, Electric Power Authority,
$ 1,000 Ser. AA, Rev., 6.25%, 07/01/10 $ 1,105
2,035 Ser. GG, Rev., 5.13%, 07/01/16@ 1,974
2,000 Sussex County, New Jersey, General
Improvement, GO, 6.00%,
04/01/02~ 2,122
785 Union County Improvement Authority,
Plainfield Board of Education
Project, Rev., 6.25%, 08/01/07 860
1,101 Union County, New Jersey, General
Improvement, GO, 4.75%, 12/15/15 1,020
2,000 Virgin Islands Public Finance
Authority, Sr. Lien, Ser. B,
Rev., 5.50%, 10/01/22 1,888
1,500 Woodbridge Township, New Jersey,
GO, 5.00%, 08/15/05 1,536
- -------------------------------------------------------------------
Total Long-Term Municipal Bonds
(Cost $64,483) 64,761
- -------------------------------------------------------------------
Short Term Investments -- 8.2%
- -------------------------------------------------------------------
Floating Rate Demand Notes -- 3.6%
1,000 New Jersey Economic Development
Authority, Foreign Trade Zone
Project, Rev., 2.80%, 09/01/99 1,000
Port Authority of New York & New
Jersey, Versatile Structure Obligation,
900 Ser. 2, Rev., 2.60%, 09/01/99 900
500 Ser. 6, Rev., 2.75%, 09/01/99 500
--------
Total Floating Rate Demand Notes
(Cost $2,400) 2,400
--------
Shares
Money Market Fund -- 4.6%
3,119 Provident New Jersey Money Market
Fund 3,119
(Cost $3,119)
- -------------------------------------------------------------------
Total Short-Term Investments
(Cost $5,519) 5,519
- -------------------------------------------------------------------
</TABLE>
See notes to financial statements.
59
<PAGE>
Chase Vista Select New Jersey Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------------
<S> <C> <C>
Total Investments -- 103.9%
(Cost $70,002) $70,280
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
Index:
~ -- The maturity date shown is the date of the prerefunded call.
* -- When Issued security.
@ -- All or a portion of this security is segregated for When Issued
securities.
COP -- Certificate of Participation.
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, 1999.
GO -- General Obligation Bond.
IAR -- Improvement Authority Revenue.
Rev. -- Revenue Bond.
</TABLE>
See notes to financial statements.
60
<PAGE>
Chase Vista Funds
Statement of Assets and Liabilities August 31, 1999
(Amounts in Thousands, Except Per Share Amounts)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Chase Vista Select
------------------------------------------------------------
New York
Intermediate Intermediate New Jersey
Tax Free Tax Free Tax Free Tax Free
Income Fund Income Fund Income Fund Income Fund
----------- ----------- ----------- -----------
ASSETS:
<S> <C> <C> <C> <C>
Investment securities, at
value (Note 1) ................ $737,082 $ 729,954 $ 291,060 $70,280
Other assets ................... 31 31 12 4
Receivables:
Investment securities sold - 5,217 669 30
Interest ...................... 10,283 10,325 3,658 735
Fund shares sold .............. 265 102 561 -
From affiliate ................ - - - 9
-------- --------- --------- -------
Total Assets ................. 747,661 745,629 295,960 71,058
-------- --------- --------- -------
LIABILITIES:
Payables:
Investment securities
purchased .................... - 13,719 - 3,100
Fund shares redeemed .......... - 10 54 -
Dividends ..................... 3,441 3,026 1,221 285
Accrued liabilities: (Note 2)
Administration fees ........... 4 4 2 -
Other ......................... 118 123 75 26
-------- --------- --------- -------
Total Liabilities ............ 3,563 16,882 1,352 3,411
-------- --------- --------- -------
NET ASSETS:
Paid in capital ................. 743,548 719,068 294,109 67,502
Accumulated
undistributed/
(overdistributed) net
investment income ............. 20 16 6 (64)
Accumulated net realized
gain (loss) on
investment and futures
transactions .................. (950) 3,794 43 (69)
Net unrealized
appreciation of
investments ................... 1,480 5,869 450 278
-------- --------- --------- -------
Total Net Assets .............. $744,098 $ 728,747 $ 294,608 $67,647
======== ========= ========= =======
Shares of beneficial interest
outstanding ($.001 par
value; unlimited number of
shares authorized) ............. 120,187 69,965 42,616 7,041
Net Asset Value, maximum
offering and redemption
price per share ................ $ 6.19 $ 10.42 $ 6.91 $ 9.61
======== ========= ========= =======
Cost of investments ............. $735,602 $ 724,085 $ 290,610 $70,002
======== ========= ========= =======
</TABLE>
See notes to financial statements.
61
<PAGE>
Chase Vista Funds
Statement of Operations For the year ended August 31, 1999
- --------------------------------------------------------------------------------
(Amounts in Thousands)
<TABLE>
<CAPTION>
Chase Vista Select
------------------------------------------------------------
New York
Intermediate Intermediate 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) ......................... $ 40,365 $ 35,454 $ 14,335 $ 3,477
--------- --------- --------- --------
EXPENSES: (Note 2)
Investment advisory fees ......... 2,294 2,200 880 209
Administration fees .............. 1,147 1,100 440 105
Custodian fees ................... 126 119 100 53
Printing and postage ............. 27 25 10 1
Professional fees ................ 56 56 45 27
Registration costs ............... 20 27 15 2
Transfer agent fees .............. 23 25 18 19
Trustees' fees and expenses 38 37 15 3
Other ............................ 59 76 33 22
--------- --------- --------- --------
Total expenses .................. 3,790 3,665 1,556 441
--------- --------- --------- --------
Less amounts waived
(Note 2) ........................ 3,536 3,389 1,408 367
Less expense
reimbursements .................. 39 71 26 49
--------- --------- --------- --------
Net expenses .................... 215 205 122 25
--------- --------- --------- --------
Net investment
income ........................ 40,150 35,249 14,213 3,452
--------- --------- --------- --------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on:
Investments ..................... (784) 6,283 678 300
Futures transactions ............ 502 (72) (112) (378)
Change in net unrealized
appreciation/depreciation
of investments and
futures ......................... (43,875) (33,446) (13,501) (3,102)
--------- --------- --------- --------
Net realized and unrealized
loss on investments and
futures transctions ............. (44,157) (27,235) (12,935) (3,180)
--------- --------- --------- --------
Net increase (decrease) in
net assets from
operations ...................... $ (4,007) $ 8,014 $ 1,278 $ 272
========= ========= ========= ========
</TABLE>
See notes to financial statements.
62
<PAGE>
Chase Vista Funds
Statement of Changes in Net Assets For the year ended August 31,
- --------------------------------------------------------------------------------
(Amounts in Thousands)
<TABLE>
<CAPTION>
Chase Vista Select
------------------------------------------------
Intermediate
Tax Free Tax Free
Income Fund Income Fund
---------------------- ----------------------
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ................................................... $ 40,150 $ 38,728 $ 35,249 $ 33,787
Net realized gain (loss) on investments and futures transactions ........ (282) 4,494 6,211 6,734
Change in net unrealized appreciation/depreciation of investments and
futures ................................................................ (43,875) 18,244 (33,446) 10,692
--------- --------- --------- ---------
Increase (decrease) in net assets from operations ....................... (4,007) 61,466 8,014 51,213
--------- --------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................................................... (40,149) (38,729) (35,250) (33,786)
Net realized gain on investment transactions ............................ (4,060) (6,435) (8,069) (12,361)
--------- --------- --------- ---------
Total distributions to shareholders ..................................... (44,209) (45,164) (43,319) (46,147)
--------- --------- --------- ---------
INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued ............................................. 83,194 94,079 104,889 100,053
Dividends reinvested .................................................... 55 6,156 8,063 12,356
Cost of shares redeemed ................................................. (51,987) (32,787) (65,922) (31,754)
--------- --------- --------- ---------
Net increase in net assets from capital share transactions .............. 31,262 67,448 47,030 80,655
--------- --------- --------- ---------
Total increase (decrease) in net assets ................................ (16,954) 83,750 11,725 85,721
NET ASSETS:
Beginning of period ..................................................... 761,052 677,302 717,022 631,301
--------- --------- --------- ---------
End of period ........................................................... $ 744,098 $ 761,052 $ 728,747 $ 717,022
========= ========= ========= =========
Share Transactions:
Issued .................................................................. 12,829 14,421 9,728 9,244
Reinvested .............................................................. 9 941 744 1,142
Redeemed ................................................................ (8,037) (5,030) (6,129) (2,932)
--------- --------- --------- ---------
Change in shares ......................................................... 4,801 10,332 4,343 7,454
========= ========= ========= =========
<CAPTION>
Chase Vista Select
----------------------------------------------
New York
Intermediate New Jersey
Tax Free Tax Free
Income Fund Income Fund
---------------------- --------------------
1999 1998 1999 1998
--------- --------- -------- --------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ................................................... $ 14,213 $ 13,047 $ 3,452 $ 3,477
Net realized gain (loss) on investments and futures transactions ........ 566 3,433 (78) 1,216
Change in net unrealized appreciation/depreciation of investments and
futures ................................................................ (13,501) 4,055 (3,102) 391
--------- --------- -------- --------
Increase (decrease) in net assets from operations ....................... 1,278 20,535 272 5,084
--------- --------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................................................... (14,214) (13,047) (3,452) (3,477)
Net realized gain on investment transactions ............................ (2,596) (2,465) (1,222) (263)
--------- --------- -------- --------
Total distributions to shareholders ..................................... (16,810) (15,512) (4,674) (3,740)
--------- --------- -------- --------
INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued ............................................. 49,190 58,621 5,638 7,947
Dividends reinvested .................................................... 2,365 1,047 1,219 264
Cost of shares redeemed ................................................. (24,227) (17,323) (5,372) (3,209)
--------- --------- -------- --------
Net increase in net assets from capital share transactions .............. 27,328 42,345 1,485 5,002
--------- --------- -------- --------
Total increase (decrease) in net assets ................................ 11,796 47,368 (2,917) 6,346
NET ASSETS:
Beginning of period ..................................................... 282,812 235,444 70,564 64,218
--------- --------- -------- --------
End of period ........................................................... $ 294,608 $ 282,812 $ 67,647 $ 70,564
========= ========= ======== ========
Share Transactions:
Issued .................................................................. 6,850 8,144 564 786
Reinvested .............................................................. 327 145 121 26
Redeemed ................................................................ (3,379) (2,406) (537) (317)
--------- --------- -------- --------
Change in shares ......................................................... 3,798 5,883 148 495
========= ========= ======== ========
</TABLE>
See notes to financial statements.
63
<PAGE>
Chase Vista 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. Select Tax Free Income
Fund ("CVTFI"), Select Intermediate Tax Free Income Fund ("CVITFI"), Select New
York Intermediate Tax Free Income Fund ("CVNYTFI") and Select New Jersey Tax
Free Income Fund ("CVNJTFI") (collectively, the "Funds") are four 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 following is a summary of significant accounting policies followed by the
Funds:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates.
A. Valuation of investments -- 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 in to 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 Fund's policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government Agency
securities. All collateral is held by the Fund's custodian bank,
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. If the seller of a repurchase agreement defaults and the value of the
collateral declines, or if the seller enters an insolvency proceeding,
realization of the collateral 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 (from) 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.
The Funds invest in U.S. Treasury and/or Municipal Bond futures contracts as
a hedge to modify the duration of the portfolio holdings.
64
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
As of August 31, 1999, 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 Fund's policy is to comply with
the provisions of the Internal Revenue Code applicable to regulated
investment companies and to distribute to shareholders all of its
distributable net investment income, and net realized gain on investments.
In addition, the Fund 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 and distributions paid to
shareholders are recorded on the ex-dividend date. The amount of dividends
and distributions from net investment income and net realized capital gains
is determined in accordance with Federal income tax regulations, which may
differ from generally accepted accounting principles. To the extent these
"book/tax" differences are permanent in nature, (i.e., that they will
result from other than timing of recognition --"temporary differences")
such amounts are reclassified within the capital accounts based on their
Federal income tax-basis treatment. The reclassification for CVNJTFI
relates primarily to the character for tax purposes of current year
distributions and non-deductible organizational costs; paid in capital was
decreased $1,387, accumulated net investment income was decreased by
$66,249 and undistributed net realized gain/loss was increased by $67,636.
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
of the Funds 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 "Adviser") acts as the
investment adviser to the Funds. Chase is a direct wholly-owned subsidiary
of The Chase Manhattan Corporation. As Investment Adviser, Chase supervises
the investments of the Funds and for such services is paid a fee. The fee
is computed daily and paid monthly at an annual rate equal to 0.30% of each
Fund's average daily net assets. The Adviser voluntarily waived all of its
fees for the year ended August 31, 1999.
Chase Asset Management, Inc. ("CAM"), a registered investment adviser, is
the sub-investment adviser to each Fund, pursuant to a Sub-Investment
Advisory Agreement between CAM and Chase. CAM is a wholly owned subsidiary
of Chase and is entitled to receive a fee, payable by Chase from its
advisory fee, at an annual rate equal to 0.15% of each Fund's average daily
net assets.
65
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
B. Sub-administration fees -- Pursuant to a Distribution and
Sub-Administration Agreement, Vista Fund Distributors, Inc. ("VFD" or the
"Distributor"), a wholly-owned subsidiary of The BISYS Group, Inc. ("BISYS"),
acts as the Trust's exclusive underwriter and promotes and arranges for the
sale of each Fund's shares. In addition, the Distributor provides certain
sub-administration services to the Trust, including providing officers,
clerical staff and office space for an annual fee computed daily and paid
monthly of 0.05% of the average daily net assets of each Fund.
The Distributor voluntarily waived sub-administration fees for the year ended
August 31, 1999 for CVTFI, CVITFI, CVNYTFI and CVNJTFI: $351; $337; $135; and
$35 respectively (in thousands).
C. Administration fee -- Pursuant to an Administration Agreement, Chase (the
"Administrator") provides certain administration services to the Trust at an
annual fee computed daily and paid monthly of 0.10% of the respective Fund's
average daily net assets. The Administrator voluntarily waived all of its
administration fees for the year ended August 31, 1999.
D. Assumption of expenses -- For the year ended August 31, 1999, Chase
voluntarily assumed the following expenses for CVTFI, CVITFI, CVNYTFI and
CVNJTFI: $39; $71; $26; and $49, respectively (in thousands).
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 is presented in the Statement of Operations
as custodian fees. Chase voluntarily waived all of its custodian fees for
the year ended August 31, 1999.
3. Investment Transactions -- The cost of purchases and proceeds from sales of
investments (excluding short-term investments) were as follows (amounts in
thousands):
<TABLE>
<CAPTION>
CVTFI CVITFI CVNYTFI CVNJTFI
---------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
Purchases (Excluding
U.S. Govt.) ......... $309,188 $468,683 $129,474 $16,671
Sales (Excluding
U.S. Govt.) ......... 288,903 445,437 109,381 21,728
</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, 1999, are as follows (amounts in thousands):
<TABLE>
<CAPTION>
CVTFI CVITFI CVNYTFI CVNJTFI
----------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
Aggregate cost ......... $735,602 $724,085 $290,610 $70,002
-------- -------- -------- -------
Gross unrealized
appreciation ......... $18,130 $ 16,834 $ 4,716 $ 1,377
Gross unrealized
depreciation ......... (16,650) (10,965) (4,266) (1,099)
-------- -------- -------- -------
Net unrealized
appreciation ......... $ 1,480 $ 5,869 $ 450 $ 278
======== ======== ======== =======
</TABLE>
66
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
5. 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.
CVNYTFI and CVNJTFI primarily invest in issuers in the States of New York and
New Jersey, respectively. CVTFI and CVITFI invested approximately 25.5% and
19.0%, respectively, of its net 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.
6. 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 year ended August 31, 1999, included in
Trustees Fees and Expenses in the Statement of Operations, and accrued pension
liability included in Other Accrued Liabilities, in the Statement of Assets and
Liabilities were as follows (in thousands):
<TABLE>
<CAPTION>
Accrued
Pension Pension
Expenses Liability
-------- ---------
<S> <C> <C>
CVTFI ....................................... $13 $44
CVITFI ...................................... 12 41
CVNYTFI ..................................... 5 15
CVNJTFI ..................................... 1 4
</TABLE>
7. Bank Borrowings -- The Funds may borrow money for temporary or emergency
purposes. Any borrowings representing more than 5% of a Fund's total assets must
be repaid before the Fund may make additional investments. The funds have
entered into an agreement, enabling them to participate with other Chase Vista
Funds in an unsecured line of credit with a syndicate of banks, which permits
borrowings up to $350 million, collectively. Interest is charged to each fund
based on its borrowings at an annual rate equal to the sum of the Federal Funds
Rate plus 0.35%. The Funds also pay a commitment fee of 0.075% per annum on the
average daily amount of the available commitment, which is allocated on a
pro-rata basis to the Funds. The commitment fee is included in Other expenses on
the Statement of Operations. Borrowings are payable on demand.
The Funds had no borrowings outstanding at August 31, 1999, nor at any time
during the year then ended.
67
<PAGE>
Chase Vista Funds
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Chase Vista Select
--------------------------------------------------------------
Intermediate
Tax Free Tax Free
Income Fund Income Fund
---------------------------- ------------------------------
Year Ended 1/1/97* Year Ended 1/1/97*
------------------ Through ------------------- Through
8/31/99 8/31/98 8/31/97 8/31/99 8/31/98 8/31/97
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ..... $ 6.60 $6.45 $6.39 $10.93 $10.85 $10.75
------ ----- ----- ------ ------ ------
Income from Investment Operations:
Net investment income .................. 0.34 0.35 0.24 0.52 0.56 0.39
Net gain or losses in securities
(both realized and unrealized) ........ (0.37) 0.21 0.06 (0.39) 0.29 0.10
------ ----- ----- ------ ------ ------
Total from Investment Operations (0.03) 0.56 0.30 0.13 0.85 0.49
------ ----- ----- ------ ------ ------
Less Distributions:
Dividends from net investment
income ................................ 0.34 0.35 0.24 0.52 0.56 0.39
Distributions from capital gains ....... 0.04 0.06 -- 0.12 0.21 --
------ ----- ------ ------ ------ ------
Total Distributions .................... 0.38 0.41 0.24 0.64 0.77 0.39
------ ----- ------ ------ ------ ------
Net Asset Value, End of Period ........... $ 6.19 $6.60 $6.45 $10.42 $10.93 $10.85
====== ===== ====== ====== ====== ======
Total Return (0.63%) 8.99% 4.86% 1.15% 8.08% 4.58%
Ratios/Supplemental Data
Net Assets, End of Period (millions) ..... $ 744 $ 761 $ 677 $ 729 $ 717 $ 631
Ratios to Average Net Assets#:
Expenses ............................... 0.03% 0.02% 0.02% 0.03% 0.02% 0.02%
Net Investment Income .................. 5.25% 5.39% 5.73% 4.81% 5.10% 5.40%
Expenses Without Waivers and
Assumption of Expenses ................ 0.50% 0.50% 0.49% 0.50% 0.50% 0.50%
Net Investment Income Without
Waivers and Assumption of
Expenses .............................. 4.78% 4.91% 5.26% 4.34% 4.62% 4.92%
Portfolio Turnover Rate .................. 39% 47% 48% 62% 71% 60%
<CAPTION>
Chase Vista Select
--------------------------------------------------------------
New York
Intermediate New Jersey
Tax Free Tax Free
Income Fund Income Fund
--------------------------- -------------------------------
Year Ended 1/1/97* Year Ended 1/1/97*
----------------- Through ------------------- Through
8/31/99 8/31/98 8/31/97 8/31/99 8/31/98 8/31/97
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ..... $7.29 $7.15 $7.09 $10.24 $10.04 $ 9.99
----- ----- ----- ------ ------ ------
Income from Investment Operations:
Net investment income .................. 0.35 0.37 0.26 0.49 0.52 0.37
Net gain or losses in securities
(both realized and unrealized) ........ (0.31) 0.21 0.06 (0.45) 0.24 0.05
----- ----- ----- ------ ------ ------
Total from Investment Operations 0.04 0.58 0.32 0.04 0.76 0.42
----- ----- ----- ------ ------ ------
Less Distributions:
Dividends from net investment
income ................................ 0.35 0.37 0.26 0.49 0.52 0.37
Distributions from capital gains ....... 0.07 0.07 -- 0.18 0.04 --
----- ----- ----- ------ ------ ------
Total Distributions .................... 0.42 0.44 0.26 0.67 0.56 0.37
----- ----- ----- ------ ------ ------
Net Asset Value, End of Period ........... $6.91 $7.29 $7.15 $ 9.61 $10.24 $10.04
===== ===== ===== ====== ====== ======
Total Return 0.38% 8.37% 4.62% 0.37% 7.82% 4.20%
Ratios/Supplemental Data
Net Assets, End of Period (millions) ..... $ 295 $ 283 $ 235 $ 68 $ 71 $ 64
Ratios to Average Net Assets#:
Expenses ............................... 0.04% 0.03% 0.03% 0.04% 0.02% 0.02%
Net Investment Income .................. 4.85% 5.08% 5.52% 4.94% 5.16% 5.52%
Expenses Without Waivers and
Assumption of Expenses ................ 0.53% 0.53% 0.53% 0.63% 0.63% 0.57%
Net Investment Income Without
Waivers and Assumption of
Expenses .............................. 4.36% 4.58% 5.02% 4.35% 4.55% 4.97%
Portfolio Turnover Rate .................. 39% 66% 32% 24% 60% 14%
</TABLE>
- -------------------
* Commencement of operations.
# Short periods have been annualized.
See notes to financial statements.
68
<PAGE>
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of
Mutual Fund Select Trust
In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Chase Vista Select Tax Free Income
Fund, Chase Vista Select Intermediate Tax Free Income Fund, Chase Vista Select
New York Intermediate Tax Free Income Fund and Chase Vista Select New Jersey Tax
Free Income Fund (separate portfolios of Mutual Fund Select Trust, hereafter
referred to as the "Trust") at August 31, 1999, the results of each of their
operations for the year then ended, the changes in each of their net assets for
each of the two years in the period then ended, and the financial highlights for
each of the periods presented, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Trust's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at August 31, 1999 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
October 11, 1999
69
<PAGE>
Unaudited
Chase Vista Select Tax Free Income (CVTFI)
Chase Vista Select Intermediate Tax Free Income Fund (CVITFI)
Chase Vista Select New York Tax Free Income Fund (CVNYTFI)
Chase Vista Select New Jersey Tax Free Income Fund (CVCNJTFI)
- --------------------------------------------------------------------------------
Certain tax information regarding the Chase Vista Select Mutual Funds is
required to be provided to shareholders based upon the Funds income and
distributions for the taxable year ended August 31, 1999. 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, 1999. The information necessary to complete your income tax returns for the
calendar year ending December 31, 1999 will be received under separate cover.
FOR THE FISCAL YEAR ENDED AUGUST 31, 1999
o The dividends paid from net investment income are 96.58%, 96.36%,
99.66% and 97.48% exempt from Federal income tax for CVTFI, CVITFI,
CVNYTFI and CVNJTFI, respectively.
o For shareholders who are subject to the Alternative Minimum Tax, the
income from private activities bond issued after August 7, 1986, which
may be considered a tax preference item, was 3.42%, 3.64%, 0.34%, and
2.52% for CVTFI, CVITFI, CVNYTFI and CVNJTFI, respectively.
o Long-term capital gain distributions were $0.018, $0.069, $0.035 and
$0.150 per share for CVTFI, CVITFI, CVNYTFI and CVNJTFI, respectively.
70
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
CHASE VISTA SELECT TAX FREE FUNDS ANNUAL REPORT
<TABLE>
<S> <C>
Investment Adviser, Administrator, Funds for providing investment
Shareholder and Fund Servicing advisory and other services.
Agent and Custodian
The Chase Manhattan Bank This report is submitted for the general
information of the shareholders of
Distributor the funds. It is not authorized for
Vista Fund Distributors, Inc. distribution to prospective investors
in the funds unless preceded or
Transfer Agent accompanied by a prospectus.
DST Systems, Inc.
The financial information in this
Legal Counsel report has been taken from the
Simpson Thacher & Bartlett books and records of the funds
without examination by independent
Independent Accountants accountants, who express no
PricewaterhouseCoopers LLP opinion thereto.
To obtain a prospectus for any
Chase Vista Funds are distributed by of the Chase Vista Funds, call
Vista Fund Distributors, Inc., which is 1-800-34-VISTA. The prospectus
unaffiliated with The Chase Manhattan contains more complete information,
Bank. Chase and its respective affiliates including charges and expenses.
receive compensation from Chase Vista Please read it carefully before you
invest or send money.
</TABLE>
(C) The Chase Manhattan Corporation, 1999, 2000. All Rights Reserved.
October 1999
[CHASE VISTA FUNDS Logo]
Chase Vista Funds Fulfillment Center
393 Manley Street
West Bridgewater, MA 02379-1039
