RULE 497(b)
Registration No. 2-96546
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[GRAPHIC OMITTED]
PROSPECTUS
Chase VistaSELECT SHARES OF CONNECTICUT DAILY TAX FREE INCOME FUND
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June 2, 1997
Connecticut Daily Tax Free Income Fund, Inc. (the "Fund") is a non-diversified,
open-end management investment company that is a short-term, tax-exempt money
market fund whose investment objectives are to seek as high a level of current
income, exempt from Federal income taxes and to the extent possible from
Connecticut personal income taxes, as is believed to be consistent with
preservation of capital, maintenance of liquidity and stability of principal.
The Fund offers two classes of shares to the general public, however only Class
A shares are offered by this Prospectus. The Class A shares of the Fund are
subject to a service fee pursuant to the Fund's Rule 12b-1 Distribution and
Service Plan and are sold through financial intermediaries who provide servicing
to Class A shareholders for which they receive compensation from the Manager and
the Distributor. The Class B shares of the Fund are not subject to a service fee
and either are sold directly to the public or are sold through financial
intermediaries that do not receive compensation from the Manager or Distributor.
In all other respects, the Class A and Class B shares represent the same
interests in the income and assets of the Fund. No assurance can be given that
these objectives will be achieved. This Prospectus relates exclusively to the
Chase Vista Select shares class of the Fund. The Fund is concentrated in the
securities issued by Connecticut or entities within Connecticut. The Fund may
invest a significant percentage of its assets in a single issuer, therefore an
investment in the Fund may be riskier than an investment in other types of money
market funds.
This Prospectus sets forth concisely the information about the Fund that
prospective investors will find helpful in making their investment decisions.
Additional information about the Fund has been filed with the Securities and
Exchange Commission and is available upon request and without charge by calling
1-800-34-VISTA. The "Statement of Additional Information" bears the same date as
this Prospectus and is incorporated by reference into this Prospectus in its
entirety.
Reich & Tang Asset Management L.P., a registered investment advisor, acts as
Manager of the Fund, and Reich & Tang Distributors, Inc., a registered
broker-dealer and member of the National Association of Securities Dealers, Inc.
acts as Distributor of the Fund's shares.
Investors should be aware that the Chase Vista Select shares may not be
purchased other than through certain securities dealers with whom Vista Fund
Distributors, Inc. ("VFD") has entered into agreements for this purpose,
directly from VFD or through certain "Participating Organizations" (see
"Investments Through Participating Organizations") with whom they have accounts.
Vista Select shares have been created for the primary purpose of providing a
Connecticut tax-free money market fund product for shareholders of certain funds
distributed by VFD. Shares of the Fund other than the Chase Vista Select shares
are offered pursuant to a separate prospectus.
AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE UNITED STATES
GOVERNMENT. THE FUND INTENDS TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER
SHARE ALTHOUGH THERE CAN BE NO ASSURANCE THAT THIS VALUE WILL BE MAINTAINED.
SHARES IN THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, ANY BANK, AND THE SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
THIS PROSPECTUS SHOULD BE READ AND RETAINED BY INVESTORS FOR FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
<PAGE>
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TABLE OF CONTENTS
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Table of Contents ........................................................2
Table of Fees and Expenses ...............................................3
Financial Highlights .....................................................4
Introduction .............................................................6
Investment Objectives, Policies and Risks ................................7
Connecticut Risk Factors ..................................................12
Management of The Fund ....................................................13
Description of Common Stock ...............................................15
Dividends and Distributions ...............................................17
How to Purchase and Redeem Shares .........................................17
Initial Purchase of Chase Vista Select Shares .........................19
Subsequent Purchases of Shares ........................................20
Redemption of Shares ..................................................20
Exchange Privilege ....................................................23
Specified Amount Automatic Withdrawal Plan ............................24
Investments Through Participating Organizations .......................24
Distribution and Service Plan .............................................25
Federal Income Taxes ......................................................27
Connecticut Income Taxes ..................................................29
General Information .......................................................29
Net Asset Value ...........................................................30
Custodian, Transfer Agent and Dividend Agent ..............................31
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2
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<TABLE>
<CAPTION>
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TABLE OF FEES AND EXPENSES
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Annual Fund Operating Expenses
(as a percentage of average net assets)
<S> <C> <C>
Class A Class B
Management Fees 0.30% 0.30%
12b-1 Fees 0.20% 0.00%
Other Expenses 0.41% 0.40%
Administration Fees 0.21% 0.21%
Total Fund Operating Expenses 0.91% 0.70%
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Example 1 year 3 years 5 years 10 years
- ------- ------ ------- ------- --------
You would pay the following expenses on a $1,000 investment, assuming 5%
annual return (cumulative through the end of each year)
Class A $9 $29 $50 $112
Class B $7 $22 $39 $87
</TABLE>
The purpose of the above fee table is to assist an investor in understanding the
various costs and expenses that an investor in the Fund will bear directly or
indirectly. For a further discussion of these fees see "Management of the Fund"
and "Distribution and Service Plan" herein. The outstanding shares of the Fund
were reclassified into Class A shares and Class B shares on October 10, 1996.
THE FIGURES REFLECTED IN THIS EXAMPLE SHOULD NOT BE CONSIDERED AS A
REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR
LESS THAN THOSE SHOWN ABOVE.
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<PAGE>
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FINANCIAL HIGHLIGHTS
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The following financial highlights of Connecticut Daily Tax Free Income Fund,
Inc. have been audited by McGladrey & Pullen, LLP, Independent Certified Public
Accountants, whose report thereon appears in the Statement of Additional
Information, which may be provided to shareholders upon request.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A Year Ended January 31,
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Per Share Operating Performance:
(for a share outstanding throughout
the period)
Net asset value, beginning of period $ 1.00 $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00$ $1.00
------ ------ ------ ----- ------ ----- ------- ------ ------ -----
Income from investment operations:
Net investment income....... 0.026 0.030 0.023 0.017 0.021 0.035 0.049 0.054 0.044 0.038
Less distributions:
Dividends from net investment income (0.026) (0.030)(0.023) (0.017) (0.021) (0.035) (0.049) (0.054) (0.044) (0.038)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total Return.................. 2.59% 3.02% 2.29% 1.70% 2.12% 3.56% 5.01% 5.58% 4.53% 3.90%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $136,606 $105,826 $81,801 $120,551 $129,297 $185,339 $178,335 $228,167 $245,529 $241,638
Ratios to average net assets:
Expenses.................... .91%++ .91%+ 0.88% 0.87% 0.86%+ 0.79% 0.80% 0.78% 0.79% 0.76%+
Net investment income....... 2.56%++ 2.96%+ 2.25% 1.68% 2.14%+ 3.51% 4.92% 5.44% 4.44% 3.83%+
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
October 10, 1996
CLASS B (Commencement of Offering) to
January 31, 1997
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period............. $ 1.00
--------
Income from investment operations:
Net investment income.......................... 0.009
Less distributions:
Dividends from net investment income............ ( 0.009)
---------
Net asset value, end of period................... $ 1.00
========
Total Return..................................... 2.83%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)........ $7
Ratios to average net assets:
Expenses....................................... 0.70%*++
Net investment income.......................... 2.80%*++
</TABLE>
* Annualized
+ Net of management, shareholder servicing and administration fees
waived equivalent to .03%, .06%, and .03% of average net assets,
respectively.
++ Includes expenses offsets equivalent to .02% of average net assets.
5
<PAGE>
INTRODUCTION
- -----------------------
Connecticut Daily Tax Free Income Fund, Inc. (the "Fund") is a non-diversified,
open-end management investment company that is a short-term, tax-exempt money
market fund whose investment objectives are to seek as high a level of current
income, exempt under current law from Federal income taxes and to the extent
possible from Connecticut personal income taxes, as is believed to be consistent
with preservation of capital, maintenance of liquidity and stability of
principal by investing principally in short-term, high quality debt obligations
of the State of Connecticut, its political subdivisions, and certain possessions
and territories of the United States, the interest on which is exempt from
Federal income tax under section 103 of the Internal Revenue Code (the "Code"),
as described under "Investment Objectives, Policies and Risks" herein. The Fund
also may invest in municipal securities of issuers located in jurisdictions
other than Connecticut, the interest income on which will be exempt from Federal
income tax, but will be subject to Connecticut personal income taxes for
Connecticut residents. The Fund seeks to maintain an investment portfolio with a
dollar-weighted average maturity of 90 days or less, and to value its investment
portfolio at amortized cost and maintain a net asset value of $1.00 per share.
The Fund intends to invest all of its assets in tax-exempt obligations; however,
it reserves the right to invest up to 20% of the value of its net assets in
taxable obligations. This is a summary of the Fund's fundamental investment
policies which are set forth in full under "Investment Objectives, Policies and
Risks" herein and in the Statement of Additional Information and may not be
changed without approval of a majority of the Fund's outstanding shares. No
assurance can be given that these objectives will be achieved.
The Fund's investment advisor is Reich & Tang Asset Management L.P. (the
"Manager"), which is a registered investment advisor and which currently acts as
manager or administrator to fifteen other open-end management investment
companies. The Fund's shares are distributed through Reich & Tang Distributors,
Inc. (the "Distributor"), with whom the Fund has entered into a Distribution
Agreement and a Shareholder Servicing Agreement (with respect to Class A shares
of the Fund only) pursuant to the Fund's plan adopted under Rule 12b-1 under the
Investment Company Act of 1940, as amended, (the "1940 Act"). (See "Distribution
and Service Plan" herein.)
On any day on which the New York Stock Exchange, Inc. is open for trading ("Fund
Business Day"), investors may, without charge by the Fund, purchase and redeem
shares of the Fund's common stock at their net asset value next determined after
receipt of the order. An investor's purchase order will be accepted after the
payment is converted into Federal funds, and shares will be issued as of the
Fund's next net asset value determination which is made as of 12 noon, New York
City time, on each Fund Business Day. (See "How to Purchase and Redeem Shares"
and "Net Asset Value" herein.) Dividends from accumulated net income are
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declared by the Fund on each Fund Business Day. The Fund generally pays interest
dividends monthly. Net capital gains, if any, will be distributed at least
annually and in no event later than within 60 days after the end of the Fund's
fiscal year. All dividends and distributions of capital gains are automatically
invested in additional shares of the Class A shares of the Fund unless a
shareholder has elected by written notice to the Fund to receive either of such
distributions in cash. (See "Dividends and Distributions" herein.)
The Fund intends that its investment portfolio will be concentrated in
Connecticut Municipal Obligations and bank participation certificates therein. A
summary of special risk factors affecting the State of Connecticut is set forth
under "Connecticut Risk Factors" herein and in the Statement of Additional
Information. Investment in the Fund should be made with an understanding of the
risks which an investment in Connecticut Municipal Obligations may entail.
Payment of interest and preservation of capital are dependent upon the
continuing ability of Connecticut issuers and/or obligors of state, municipal
and public authority debt obligations to meet their obligations thereunder.
Investors should consider the greater risk of the Fund's concentration versus
the safety that comes with a less concentrated portfolio and should compare
yields available on portfolios of Connecticut issues with those of more
diversified portfolios including out-of-state issues before making an investment
decision. The Fund's Board of Directors is authorized to divide the unissued
shares into separate series of stock, one for each of the Fund's separate
investment portfolios that may be created in the future.
Chase Vista Select shares have been created for the primary purpose of providing
a Connecticut tax-free money market fund product for investors who purchase
shares directly from VFD, through dealers with whom VFD has entered into
agreements for this purpose, or through certain "Participating Organizations"
(see "Investments Through Participating Organizations" herein) with whom they
have accounts or who acquire Chase Vista Select shares through the exchange of
shares of certain other investment companies as hereinafter described. Chase
Vista Select shares are identical to other shares of the Fund, which are offered
pursuant to a separate prospectus, with respect to investment objectives and
yield, but differ with respect to certain other matters. For example,
shareholders who hold other shares of the Fund may not participate in the
exchange privilege described herein and have different arrangements for
redemptions by check.
INVESTMENT OBJECTIVES, POLICIES
AND RISKS
- --------------------------------
The Fund is a non-diversified, open-end management investment company that is a
short-term, tax-exempt money market fund whose investment objectives are to seek
as high a level of current income, exempt from Federal income taxes and, to the
extent possible from the
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<PAGE>
Connecticut tax on the Connecticut taxable income of individuals, trusts, and
estates (the "Connecticut Personal Income Tax"), as is believed to be consistent
with preservation of capital, maintenance of liquidity and stability of
principal. There can be no assurance that the Fund will achieve its investment
objectives.
The Fund's assets will be invested primarily in high quality debt obligations
issued by or on behalf of the State of Connecticut, other states, territories
and possessions of the United States, and their authorities, agencies,
instrumentalities and political subdivisions, the interest on which is, in the
opinion of bond counsel at the date of issuance, currently exempt from Federal
income taxation ("Municipal Obligations") and in participation certificates in
Municipal Obligations purchased from banks, insurance companies or other
financial institutions. Dividends paid by the Fund which are "exempt-interest
dividends" by virtue of being properly designated as derived from Municipal
Obligations and participation certificates in Municipal Obligations will be
exempt from Federal income tax provided the Fund complies with Section 852(b)(5)
of Subchapter M of the Code.
Although the Supreme Court has determined that Congress has the authority to
subject the interest on bonds such as the Municipal Obligations to regular
Federal income taxation, existing law excludes such interest from regular
Federal income tax. However, "exempt-interest dividends" may be subject to the
Federal alternative minimum tax. (See "Federal Income Taxes" herein.)
Exempt-interest dividends paid by the Fund correctly identified as derived from
obligations issued by or on behalf of the State of Connecticut or any political
subdivision thereof, or public instrumentality, state or local authority,
district, or similar public entity created under the laws of the State of
Connecticut or from obligations (such as certain obligations issued by or on
behalf of possessions or territories of the United States) the interest on which
Federal law prohibits the states from taxing ("Connecticut Municipal
Obligations") will be exempt from the Connecticut Personal Income Tax. (See
"Connecticut Income Taxes" herein.) To the extent suitable Connecticut Municipal
Obligations are not available for investment by the Fund, the Fund may purchase
Municipal Obligations issued by other states, their agencies and
instrumentalities or other obligations, the dividends designated as derived from
interest income on which will be exempt from Federal income tax but will be
subject to the Connecticut Personal Income Tax. However, except as a temporary
defensive measure during periods of adverse market conditions as determined by
the Manager, the Fund will invest at least 65% of its assets in Connecticut
Municipal Obligations, the exempt-interest dividends derived from which are
exempt from the Connecticut Personal Income Tax, although the exact amount of
the Fund's assets invested in such securities will vary from time to time. The
Fund's
8
<PAGE>
investments may include "when-issued" Municipal Obligations, stand-by
commitments and taxable repurchase agreements. Although the Fund will attempt to
invest 100% of its assets in Municipal Obligations, the Fund reserves the right
to invest up to 20% of the value of its total assets in securities, the interest
income on which is subject to Federal, state and local income tax. The Fund
expects to invest more than 25% of its assets in participation certificates
purchased from banks in industrial revenue bonds and other Connecticut Municipal
Obligations.
In view of this "concentration" in bank participation certificates in
Connecticut Municipal Obligations, an investment in the Fund should be made with
an understanding of the characteristics of the banking industry and the risks
which such an investment may entail, which include extensive governmental
regulation, changes in the availability and cost of capital funds, and general
economic conditions. (See "Variable Rate Demand Instruments and Participation
Certificates" in the Statement of Additional Information.) The investment
objectives of the Fund described in this paragraph may not be changed unless
approved by the holders of a majority of the outstanding shares of the Fund that
would be affected by such a change. As used in this Prospectus, the term
"majority of the outstanding shares" of the Fund means, respectively, the vote
of the lesser of (i) 67% or more of the shares of the Fund present at a meeting,
if the holders of more than 50% of the outstanding shares of the Fund are
present or represented by proxy, or (ii) more than 50% of the outstanding shares
of the Fund.
The Fund may only purchase Municipal Obligations that have been determined by
the Fund's Board of Directors to present minimal credit risks and that are
Eligible Securities at the time of acquisition. The term Eligible Securities
means: (i) Municipal Obligations with remaining maturities of 397 days or less
and rated in the two highest short-term rating categories by any two nationally
recognized statistical rating organizations ("NRSROs") or in such categories by
the only NRSRO that has rated the Municipal Obligations (collectively, the
"Requisite NRSROs") (acquisition in the latter situation must also be ratified
by the Board of Directors); (ii) Municipal Obligations with remaining maturities
of 397 days or less but that at the time of issuance were long-term securities
(i.e., with maturities greater than 366 days) and whose issuer has received from
the Requisite NRSROs a rating with respect to comparable short-term debt in the
two highest short-term rating categories; and (iii) unrated Municipal
Obligations determined by the Fund's Board of Directors to be of comparable
quality. Where the issuer of a long-term security with a remaining maturity
which would otherwise qualify it as an Eligible Security, does not have rated
short-term debt outstanding, the long-term security is treated as unrated but
may not be purchased if it has a long-term rating from any NRSRO that is below
the two highest long-term categories. A determination
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<PAGE>
of comparability by the Board of Directors is made on the basis of its credit
evaluation of the issuer, which may include an evaluation of a letter of credit,
guarantee, insurance or other credit facility issued in support of the Municipal
Obligations or participation certificates. (See "Variable Rate Demand
Instruments and Participation Certificates" in the Statement of Additional
Information.) While there are several organizations that currently qualify as
NRSROs, two examples of NRSROs are Standard & Poor's Rating Services, a division
of the McGraw-Hill Companies ("S&P") and Moody's Investors Service, Inc.
("Moody's"). The two highest ratings by S&P and Moody's are "AAA" and "AA" by
S&P in the case of long-term bonds and notes or "Aaa" and "Aa" by Moody's in the
case of bonds; "SP-1" and "SP-2" by S&P or "MIG-1" and "MIG-2" by Moody's in the
case of notes; "A-1" and "A-2" by S&P or "Prime-1" and "Prime-2" by Moody's in
the case of tax-exempt commercial paper. The highest rating in the case of
variable and floating demand notes is "VMIG-1" by Moody's and "SP-1/AA" by S&P.
Such instruments may produce a lower yield than would be available from less
highly rated instruments. The Fund's Board of Directors has determined that
obligations which are backed by the credit of the Federal government (the
interest on which is not exempt from Federal income taxation) will be considered
to have a rating equivalent to Moody's "Aaa".
Subsequent to its purchase by the Fund, the quality of an investment may cease
to be rated or its rating may be reduced below the minimum required for purchase
by the Fund. If this occurs, the Board of Directors of the Fund shall reassess
promptly whether the security presents minimal credit risks and shall cause the
Fund to take such action as the Board of Directors determines is in the best
interest of the Fund and its shareholders. Reassessment, however, is not
required if the security is disposed of or matures within five business days of
the Manager becoming aware of the new rating and provided further that the Board
of Directors is subsequently notified of the Manager's actions.
In addition, in the event that a security (1) is in default, (2) ceases to be an
eligible investment under Rule 2a-7, or (3) is determined to no longer present
minimal credit risks, the Fund will dispose of the security absent a
determination by the Fund's Board of Directors that disposal of the security
would not be in the best interests of the Fund. In the event that the security
is disposed of it shall be disposed of as soon as practicable consistent with
achieving an orderly disposition by sale, exercise of any demand feature or
otherwise. In the event of a default with respect to a security which
immediately before default accounted for 1/2 of 1% or more of the Fund's total
assets, the Fund shall promptly notify the Securities and Exchange Commission of
such fact and of the actions that the Fund intends to take in response to the
situation.
In view of the "concentration" of the Fund in bank participation
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certificates in Connecticut Municipal Obligations, which may be secured by bank
letters of credit or guarantees, an investment in the Fund should be made with
an understanding of the characteristics of the banking industry and the risks
which such an investment may entail which include extensive governmental
regulation, changes in the availability and cost of capital funds and general
economic condition. (See "Variable Rate Demand Instruments and Participation
Certificates" in the Statement of Additional Information.) Banks are subject to
extensive governmental regulations which may limit both the amounts and types of
loans and other financial commitments which may be made and interest rates and
fees which may be charged. The profitability of this industry is largely
dependent upon the availability and cost of capital funds for the purpose of
financing lending operations under prevailing money market conditions. Also,
general economic conditions play an important part in the operations of this
industry and exposure to credit losses arising from possible financial
difficulties of borrowers might affect a bank's ability to meet its obligations
under a letter of credit. The Fund may invest 25% or more of the net assets of
any portfolio in securities that are related in such a way that an economic,
business or political development or change affecting one of the securities
would also affect the other securities including, for example, securities the
interest upon which is paid from revenues of similar type projects, or
securities the issuers of which are located in the same state.
All investments by the Fund will mature or will be deemed to mature within 397
days or less from the date of acquisition and the average maturity of the Fund's
portfolio (on a dollar-weighted basis) will be 90 days or less. The maturities
of variable rate demand instruments held in the Fund's portfolio will be deemed
to be the longer of the period required before the Fund is entitled to receive
payment of the principal amount of the instrument through demand, or the period
remaining until the next interest rate adjustment, although the stated
maturities may be in excess of 397 days.
As a non-diversified investment company, the Fund is not subject to any
statutory restriction under the 1940 Act with respect to investing its assets in
one or relatively few issuers. This non-diversification may present greater
risks than in the case of a diversified company. The Fund intends, however, to
qualify as a "regulated investment company" under Subchapter M of the Code. The
Fund will be restricted in that, at the close of each quarter of the taxable
year, at least 50% of the value of its total assets must be represented by cash,
Government securities, investment company securities and other securities
limited in respect of any one issuer to not more than 5% in value of the total
assets of the Fund and to not more than 10% of the outstanding voting securities
of such issuers. In addition, at the close of each quarter of its taxable year,
not more than 25% in value of the Fund's total assets may be
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invested in securities of one issuer other than government securities. The
limitations described in this paragraph are not fundamental policies and may be
revised to the extent applicable Federal income tax requirements are revised.
(See "Federal Income Taxes" herein.)
The primary purpose of investing in a portfolio of Connecticut Municipal
Obligations is the special tax treatment accorded Connecticut resident
individual investors. However, payment of interest and preservation of principal
is dependent upon the continuing ability of the issuers and/or obligors of
state, municipal and public authority debt obligations to meet their obligations
thereunder. Investors should consider the greater risk of the Fund's
concentration versus the safety that comes with a less concentrated investment
portfolio and should compare yields available on portfolios of Connecticut
issues with those of more diversified portfolios including out-of-state issues
before making an investment decision. The Fund's management believes that by
maintaining the Fund's investment portfolio in liquid, short-term, high quality
investments, including participation certificates and other variable rate demand
instruments that have high quality credit support from banks, insurance
companies or other financial institutions, the Fund is largely insulated from
the credit risks that may exist on long-term Connecticut Municipal Obligations.
For additional information, please refer to the Statement of Additional
Information.
CONNECTICUT
RISK FACTORS
- -------------------------------
Because of the Fund's concentration in investments in Connecticut Municipal
Obligations, the safety of an investment in the Fund will depend importantly on
the financial strength of Connecticut and its political subdivisions. The
Connecticut economy relies in part on activities that have been subject to
cyclical change, and the State is now in a recession the depth and duration of
which are uncertain. The State's General Fund ran operating deficits for the
four fiscal years ended June 30, 1991, and accumulated an unappropriated deficit
of $965,712,000. While the State's General Fund ran operating surpluses for the
five fiscal years ended June 30, 1996, largely because of the enactment of the
Connecticut Personal Income Tax, contractions in defense and other industries
are adversely affecting Connecticut's economy, and unemployment and poverty
plague some of its cities and towns. There can be no assurance that general
economic difficulties or the financial circumstances of Connecticut or its towns
and cities will not adversely affect the market value of their obligations or
the ability of the obligors to pay debt service on such obligations.
MANAGEMENT OF THE FUND
The Fund's Board of Directors which is responsible for the overall management
and supervision of the Fund, has employed Reich & Tang Asset Management L.P.
("the Manager") to serve as investment manager of the Fund. The
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Manager provides persons satisfactory to the Fund's Board of Directors to serve
as officers of the Fund. Such officers, as well as certain other employees and
directors of the Fund, may be directors or officers of Reich & Tang Asset
Management, Inc., the sole general partner of the Manager, or employees of the
Manager or its affiliates. Due to the services performed by the Manager, the
Fund currently has no employees and its officers are not required to devote
full-time to the affairs of the Fund. The Statement of Additional Information
contains general background information regarding each director and principal
officer of the Fund.
The Manager is a Delaware limited partnership with its principal office at 600
Fifth Avenue, New York, New York 10020. The Manager was at April 30, 1997
investment manager, adviser or supervisor with respect to assets aggregating in
excess of $9.2 billion. The Manager acts as investment manager or administrator
of fifteen other registered investment companies and also advises pension
trusts, profit-sharing trusts and endowments.
New England Investment Companies, L.P. ("NEICLP") is the limited partner and
owner of a 99.5% interest in the Manager. Reich & Tang Asset Management, Inc.
(a wholly-owned subsidiary of NEICLP) is the general partner and owner of the
remaining .5% interest of the Manager. New England Investment Companies, Inc.
("NEIC"), a Massachusetts corporation, serves as the sole general partner of
NEICLP. Reich & Tang Asset Management L.P. succeeded NEICLP as the Manager
of the Fund.
On August 30, 1996, The New England Mutual Life Insurance Company ("The New
England") and Metropolitan Life Insurance Company (MetLife") merged, with
MetLife being the continuing company. The Manager remains an indirect
wholly-owned subsidiary of NEICLP, but Reich & Tang Asset Management, Inc., its
sole general partner, is now an indirect subsidiary of MetLife. Also, MetLife
New England Holdings, Inc., a wholly-owned subsidiary of MetLife, owns 51% of
the outstanding limited partnership interest of NEICLP and may be deemed a
"controlling person" of the Manager. Reich & Tang, Inc. owns approximately 16%
of the outstanding partnership units of NEICLP.
MetLife is a mutual life insurance company with assets of $297.6 billion at
December 31, 1996. It is the second largest life insurance company in the United
States in terms of total assets. MetLife provides a wide range of insurance and
investment products and services to individuals and groups and is the leader
among United States life insurance companies in terms of total life insurance in
force, which exceeded $1.6 trillion at December 31, 1996 for MetLife and its
insurance affiliates. MetLife and its affiliates provide insurance or other
financial services to approximately 36 million people worldwide.
NEIC is a holding company offering a broad array of
13
<PAGE>
investment styles across a wide range of asset categories through twelve
subsidiaries, divisions and affiliates offering a wide array of investment
styles and products to institutional clients. Its business units include AEW
Capital Management, L.P., Back Bay Advisors, L.P., Graystone Partners, L.P.,
Harris Associates, L.P., Jurika & Voyles, L.P., Loomis, Sayles & Co., L.P., MC
Management, L.P., New England Fund, L.P., New England Funds Management, L.P.,
Reich & Tang Asset Management L.P., Vaughan-Nelson, Scarborough & McConnell L.P.
and Westpeak Investment Advisors, L.P. These affiliates in the aggregate are
investment advisors or managers to 43 other registered investment companies.
The merger between The New England and MetLife resulted in an "assignment" of
the Investment Management Contract relating to the Fund. Under the 1940 Act,
such an assignment caused the automatic termination of this agreement. On
November 28, 1995, the Board of Directors, including a majority of the directors
who are not interested persons (as defined in the 1940 Act) of the Fund or the
Manager, approved a Investment Management Contract effective August 30, 1996,
which has a term which extends to January 31, 1998 and may be continued in force
thereafter for successive twelve-month periods beginning each February 1,
provided that such continuance is specifically approved annually by majority
vote of the Fund's outstanding voting securities or by its Board of Directors,
and in either case by a majority of the directors who are not parties to the
Investment Management Contract or interested persons of any such party, by votes
cast in person at a meeting called for the purpose of voting on such matter.
The Investment Management Contract was approved by a majority of the
shareholders of the Fund on July 22, 1996 and contains the same terms and
conditions governing the Manager's investment management responsibilities as the
Fund's previous Investment Management Contract with the Manager, except as to
the date of execution and termination.
The merger and the change in control of the Manager is not expected to have any
impact upon the Manager's performance of its responsibilities and obligations
under the Investment Management Contract.
Pursuant to the Investment Management Contract, the Manager manages the Fund's
portfolio of securities and makes decisions with respect to the purchase and
sale of investments, subject to the general control of the Board of Directors of
the Fund.
For its services under the Investment Management Contract, the Manager receives
from the Fund a fee equal to .30% per annum of the Fund's average daily net
assets for managing the Fund's investment portfolio and performing related
services. In addition, the Distributor receives a fee equal to .20% per annum of
the Fund's average daily net assets under the Shareholder Servicing
14
<PAGE>
Agreement. The fees are accrued daily and paid monthly. Any portion of the total
fees received by the Manager and the Distributor may be used to provide
shareholder and administrative services and for distribution of Fund shares.
(See "Distribution and Service Plan" herein.)
Pursuant to the Administrative Services Contract for the Fund, the Manager
performs clerical, accounting supervision and office service functions for the
Fund and provides the Fund the personnel to: (i) supervise the performance of
accounting and related services by Investors Fiduciary Trust Company, the Fund's
bookkeeping agent; (ii) prepare reports to and filings with regulatory
authorities; and (iii) perform such other services as the Fund may from time to
time request of the Manager. The personnel rendering such services may be
employees of the Manager or its affiliates. The Manager, at its discretion, may
voluntarily waive all or a portion of the administrative services fee. For its
services under the Administrative Services Contract, the Manager receives a fee
equal to .21% per annum of the Fund's average daily net assets. Any portion of
the total fees received by the Manager may be used to provide shareholder
services and for distribution of Fund shares (see "Distribution and Service
Plan" herein).
DESCRIPTION OF
COMMON STOCK
- --------------------
The Fund was incorporated in Maryland on March 8, 1985. The authorized capital
stock of the Fund consists of twenty billion shares of stock having a par value
of one-tenth of one cent ($.001) per share. The Fund's Board of Directors is
authorized to divide the unissued shares into separate series of stock, each
series representing a separate, additional investment portfolio. Shares of all
series will have identical voting rights, except where, by law, certain matters
must be approved by a majority of the shares of the affected series. Each share
of any series of shares when issued has equal dividend, distribution,
liquidation and voting rights within the series for which it was issued, and
each fractional share has those rights in proportion to the percentage that the
fractional share represents of a whole share. Generally all shares will be voted
in the aggregate except if voting by class is required by law or the matter
involved affects only one class, in which case shares will be voted separately
by class. There are no conversion or preemptive rights in connection with any
shares of the Fund. All shares, when issued in accordance with the terms of the
offering, will be fully paid and nonassessable. Shares are redeemable at net
asset value, at the option of the shareholder.
Chase Vista Select shares have been created for the primary purpose of providing
a Connecticut tax-free money market fund
15
<PAGE>
product for investors who purchase shares directly from VFD, through dealers
with whom VFD has entered into agreements for this purpose (see "Investments
Through Participating Organizations" herein) with whom they have accounts or who
acquire Chase Vista Select shares through the exchange of shares of certain
other investment companies as hereinafter described. Chase Vista Select shares
are identical to other shares of the Fund, which are offered pursuant to a
separate prospectus, with respect to investment objectives and yield, but differ
with respect to certain other matters. For example, shareholders who hold other
shares of the Fund may not participate in the exchange privilege described
herein and have different arrangements for redemptions by check.
Under its Articles of Incorporation the Fund has the right to redeem for cash
shares of stock owned by any shareholder to the extent and at such times as the
Fund's Board of Directors determines to be necessary or appropriate to prevent
an undue concentration of stock ownership which would cause the Fund to become a
"personal holding company" for Federal income tax purposes. In this regard, the
Fund may also exercise its right to reject purchase orders. As of April 30,
1997, the amount of shares owned by all officers and directors of the Fund, as a
group, was less than 1% of the outstanding shares of the Fund.
The Fund is subdivided into two classes of stock, Class A and Class B. Each
share, regardless of class, will represent an interest in the same portfolio of
investments and will have identical voting, dividend, liquidation and other
rights, preferences, powers, restrictions, limitations, qualifications,
designations and terms and conditions, except that: (i) the Class A and Class B
shares will have different class designations; (ii) only the Class A shares will
be assessed a service fee pursuant to the Rule 12b-1 Distribution and Service
Plan of the Fund of .20% of the Fund's average daily net assets; (iii) only the
holders of the Class A shares will be entitled to vote on matters pertaining to
the Plan and any related agreements in accordance with provisions of Rule 12b-1;
and (iv) the exchange privilege will permit shareholders to exchange their
shares only for shares of the same class of an Exchange Fund. Payments that are
made under the Plan will be calculated and charged daily to the appropriate
class prior to determining daily net asset value per share and
dividends/distributions.
The shares of the Fund have non-cumulative voting rights, which means that the
holders of more than 50% of the shares outstanding voting for the election of
directors can elect 100% of the directors if the holders choose to do so, and,
in that event, the holders of the remaining shares will not be able to elect any
person or persons to the Board of Directors. Unless specifically requested by an
investor who is a shareholder of record, the Fund does not issue certificates
evidencing Fund shares.
DIVIDENDS AND
DISTRIBUTIONS
The Fund declares dividends equal to all its net investment income (excluding
capital gains and losses, if any, and amortization of market discount) on each
Fund Business Day and generally pays dividends monthly. There is no fixed
dividend rate. In computing these
16
<PAGE>
dividends, interest earned and expenses are accrued daily.
Net realized capital gains, if any, are distributed at least annually and in no
event later than 60 days after the end of the Fund's fiscal year.
All dividends and distributions of capital gains are automatically invested in
additional Fund shares of the same Class of shares immediately upon payment
thereof unless a shareholder has elected by written notice to the Fund to
receive either of such distributions in cash. The Class A shares will bear a
service fee under the Plan. As a result, the net income of and the dividends
payable to the Class A shares will be lower than the net income of and dividends
payable to the Class B shares of the Fund. Dividends paid to each Class of
shares of the Fund will, however, be declared and paid on the same days at the
same times and, except as noted with respect to the service fees payable under
the Plan, will be determined in the same manner and paid in the same amounts.
HOW TO PURCHASE AND
REDEEM SHARES
- ---------------------
Investors may invest in Chase Vista Select shares through VFD or through dealers
with whom VFD has entered into agreements for this purpose as described herein
and those who have accounts with Participating Organizations may invest in the
Chase Vista Select shares through their Participating Organizations in
accordance with the procedures established by the Participating Organizations.
(See "Investments Through Participating Organizations" herein.) Only Class A
shares are offered through this Prospectus. Certain Participating Organizations
are compensated by the Distributor from its shareholder servicing fee and by the
Manager from its management fee for the performance of these services. An
investor who purchases shares through a Participating Organization that receives
payment from the Manager or the Distributor will become a Class A shareholder.
All other investors, and investors who have accounts with Participating
Organizations but who do not wish to invest in the Fund through their
Participating Organizations, may invest in the Fund directly as Class B
shareholders and not receive the benefit of the servicing functions performed by
a Participating Organization. Class B shares may also be offered to investors
who purchase their shares through Participating Organizations who do not receive
compensation from the Distributor or the Manager because they may not be legally
permitted to receive such as fiduciaries. The Manager pays the expenses incurred
in the distribution of Class B shares. Participating Organizations whose clients
become Class B shareholders will not receive compensation from the
17
<PAGE>
Manager or Distributor for the servicing they may provide to their clients. The
minimum initial investment in the Chase Vista Select shares is $2,500. Initial
investments may be made in any amount in excess of the applicable minimums. The
minimum amount for subsequent investments is $100.
The Fund sells and redeems its shares on a continuing basis at their net asset
value and does not impose a charge for either sales or redemptions. All
transactions in Fund shares are effected through the Fund's transfer agent which
accepts orders for purchases and redemptions from Participating Organizations,
VFD, and from dealers with whom VFD has entered into agreements for this
purpose.
In order to maximize earnings on its portfolio, the Fund normally has its assets
as fully invested as is practicable. Many securities in which the Fund invests
require immediate settlement in funds of Federal Reserve member banks on deposit
at a Federal Reserve Bank (commonly known as "Federal Funds"). Accordingly, the
Fund does not accept a subscription or invest an investor's payment in portfolio
securities until the payment has been converted into Federal Funds.
Shares will be issued as of the first determination of the Fund's net asset
value per share for each Class made after acceptance of the investor's purchase
order at the net asset value per share next determined after receipt of the
purchase order. Shares begin accruing income dividends on the day they are
purchased. The Fund reserves the right to reject any subscription for its
shares. Certificates for Fund shares will not be issued to an investor.
Shares are issued as of 12 noon, New York City time, on any Fund Business Day as
defined herein on which an order for the shares and accompanying Federal Funds
are received by the Fund's transfer agent before 12 noon. Orders accompanied by
Federal Funds and received after 12 noon, New York City time, on a Fund Business
Day will not result in share issuance until the following Fund Business Day.
Fund shares begin accruing income on the day the shares are issued to an
investor.
There is no redemption charge, no minimum period of investment, no minimum
amount for a redemption, and no restriction on frequency of withdrawals. Unless
other instructions are given in proper form to the Fund's transfer agent, a
check for the proceeds of a redemption will be sent to the shareholders' address
of record. If a shareholder elects to redeem all the shares of the Fund he owns,
all dividends accrued to the date of such redemption will be paid to the
shareholder along with the proceeds of the redemption.
The right of redemption may not be suspended or the date of payment upon
redemption postponed for more than seven days after the shares are tendered for
redemption, except for any period during which the New York Stock Exchange, Inc.
is closed (other than customary weekend and holiday closings) or during which
the Securities and Exchange Commission determines that trading thereon is
restricted, or for any period during which an emergency (as determined by the
Securities and Exchange Commission) exists as a result of which disposal by the
Fund of its portfolio securities is not reasonably practicable or as a result of
which it is not reasonably practicable for the Fund fairly to determine the
value of its net assets, or for such other period as the Securities and Exchange
18
<PAGE>
Commission may by order permit for the protection of the shareholders of the
Fund.
Redemption requests received by the Fund's transfer agent before 12 noon, New
York City time, on any Fund Business Day become effective at 12 noon on that
day. Shares redeemed are not entitled to participate in dividends declared on
the day a redemption becomes effective. A redemption request received after 12
noon, New York City time, on any Fund Business Day becomes effective on the next
Fund Business Day.
The Fund has reserved the right to redeem the shares of any shareholder if the
net asset value of all the remaining shares in the shareholder's or his
Participating Organization's account after a withdrawal is less than $500.
Written notice of a proposed mandatory redemption will be given at least 30 days
in advance to any shareholder whose account is to be redeemed. For Participant
Investor accounts, notice of a proposed mandatory redemption will be given only
to the appropriate Participating Organization, and the Participating
Organization will be responsible for notifying the Participant Investor of the
proposed mandatory redemption. During the notice period a shareholder or
Participating Organization who receives such a notice may avoid mandatory
redemption by purchasing sufficient additional shares to increase the total net
asset value to at least the minimum amount and thereby avoid such mandatory
redemption.
The redemption of shares may result in the investor's receipt of more or less
than he paid for his shares and, thus, in a taxable gain or loss to the
investor.
INITIAL PURCHASES OF
CHASE VISTA SELECT SHARES
Investors may obtain a current prospectus and the order form necessary to open
an account by telephoning the Chase Vista Service Center at 1-800-34-VISTA.
Mail. To purchase shares of the Chase Vista Select Shares, investors may send a
check made payable to "Chase Vista Select Shares of Connecticut Daily Tax Free
Income Fund, Inc." along with a completed subscription order form to:
Connecticut Daily Tax Free Income Fund, Inc.
P. O. Box 419392
Kansas City, Missouri 64141-6392
Checks are accepted subject to collection at full face value in United States
currency. Payment by a check drawn on any member of the Federal Reserve System
can normally be converted into Federal Funds within two business days after
receipt of the check. Checks drawn on a non-member bank may take substantially
longer to convert into Federal Funds. An investor's subscription will not be
accepted until the Fund receives Federal Funds.
Bank Wire. To purchase shares using the wire system for transmittal of money
among banks, investors should first obtain a new account number by telephoning
the Fund at 1-800-34-VISTA to obtain a new account number. The
19
<PAGE>
investors should then instruct a member commercial bank to wire their money
immediately to:
DST Systems, Inc.
ABA #1010-0362-1
CHASE VISTA FUNDS
DDA # 751-1-629
For Connecticut Daily Tax Free
Income Fund, Inc.
Account of
Fund Account #
SS #/Tax ID #
The investor should then promptly complete and mail the subscription order form.
Investors planning to wire funds should instruct their bank early in the day so
the wire transfer can be accomplished before 12 noon on that same day. There may
be a charge by the investor's bank for transmitting the money by bank wire, and
there also may be a charge for use of Federal Funds. The Fund does not charge
investors in the Fund for its receipt of wire transfers. Payment in the form of
a "bank wire" received prior to 12 noon, New York City time, on a Fund Business
Day will be treated as a Federal Funds payment received on that day.
Subsequent Purchases of Shares. Subsequent purchases can be made by bank wire
or by mailing a check to:
Chase Vista Funds
P.O. Box 419392
Kansas City, Missouri 64141-6392
There is a $100 minimum for subsequent purchases of shares. All payments should
clearly indicate the shareholder's account number. Provided that the information
on the subscription order form on file with the Fund is still applicable, a
shareholder may re-open an account without filing a new subscription order form
at any time during the year the shareholder's account is closed or during the
following calendar year.
REDEMPTION OF SHARES
A redemption is effected immediately following, and at a price determined in
accordance with, the next determination of net asset value per share of each
Class following receipt by the Fund's transfer agent of the redemption order.
Normally, payment for redeemed shares is made on the same Fund Business Day
after the redemption is effected, provided the redemption request is received
prior to 12 noon, New York City time and on the next Fund Business Day if the
redemption request is received after 12 noon, New York City time. However,
redemption requests will not be effected unless the check (including a certified
or cashier's check) used to purchase the shares has been cleared for payment by
the investor's bank, currently considered by the Fund to occur within 15 days
after investment.
A shareholder's original subscription order form permits the shareholder to
redeem by written request and to elect one or more of the additional redemption
procedures described below. A shareholder may only change the instructions
indicated on their original subscription order form by transmitting a written
direction to the Fund's transfer agent. Requests
20
<PAGE>
to institute or change any of the additional redemption procedures will require
a signature guarantee. When a signature guarantee is called for, the shareholder
should have "Signature Guaranteed" stamped under their signature, signed and
guaranteed by an eligible guarantor institution which includes a domestic bank,
a domestic savings and loan institution, a domestic credit union, a member bank
of the Federal Reserve System or a member firm of a national securities
exchange, pursuant to the fund's transfer agent's standard and procedures
(signature guarantees by notaries public are not acceptable).
Written Requests. Shareholders may make a redemption in any amount by sending
a written request to the Fund addressed to:
Chase Vista Funds
P.O. Box 419392
Kansas City, Missouri 64141-6392
Normally the redemption proceeds are paid by check mailed to the shareholder of
record.
Checks. By making the appropriate election on their subscription form,
shareholders may request a supply of checks which may be used to effect
redemptions from the Class of shares in the Fund in which they invest. The
checks, which will be issued in the shareholder's name, are drawn on a special
account maintained by the Fund with the Fund's agent bank. Checks may be drawn
in any amount of $500 or more. When a check is presented to the Fund's agent
bank, it instructs the Fund's transfer agent to redeem a sufficient number of
full and fractional shares in the shareholder's account to cover the amount of
the check. The use of a check to make a withdrawal enables a shareholder in the
Fund to receive dividends on the shares to be redeemed up to the Fund Business
Day on which the check clears. Checks provided by the Fund may not be certified.
Vista Select Shares purchased by check may not be redeemed by check until the
check has cleared, which could take up to 15 days following the date of
purchase.
There is no charge to the shareholder for checks provided by the Fund. The Fund
reserves the right to impose a charge or impose a different minimum check amount
in the future, if the Board of Directors determines that doing so is in the best
interests of the Fund and its shareholders.
Shareholders electing the checking option are subject to the procedures, rules
and regulations of the Fund's agent bank governing checking accounts. Checks
drawn on a jointly owned account may, at the shareholder's election, require
only one signature. The Fund's agent bank will not honor checks which are in
amounts exceeding the value of the shareholder's account at the time the check
is presented for payment. Since the dollar value of the account changes daily,
the total value of the account may not be determined in advance and the account
may not be entirely redeemed by check. In addition, the Fund reserves the right
to charge the shareholder's account a fee up to $20 for checks not honored as a
result of an insufficient account value, a check deemed not
21
<PAGE>
negotiable because it has been held longer than six months, an unsigned check
and a post-dated check. The Fund reserves the right to terminate or modify the
check redemption procedure at any time or impose additional fees following
notification to the Fund's shareholders.
Investors wishing to avail themselves of this method of redemption should elect
it on their subscription order form. Individuals and joint tenants are not
required to furnish any supporting documentation. Corporations and other
entities making this election, however, are required to furnish a certified
resolution or other evidence of authorization in accordance with the Fund's
normal practices. Appropriate authorization forms will be sent by the Fund or
its agents to corporations and other shareholders who select this option. As
soon as the authorization forms are filed in good order with the Fund's agent
bank, it will provide the shareholder with a supply of checks. This checking
service may be terminated or modified at any time or to impose additional fees
following notification to the Funds shareholders.
Telephone. The Fund accepts telephone requests for redemption from shareholders
who elect this option. The proceeds of a telephone redemption may be sent to the
shareholders at their addresses or, to their bank accounts, both as set forth in
the subscription order form or in a subsequent written authorization. However,
all telephone redemption requests in excess of $25,000 will be wired directly to
such previously designated bank account, for the protection of shareholders. The
Fund may accept telephone redemption instructions from any person with respect
to accounts of shareholders who elect this service and thus such shareholders
risk possible loss of principal and interest in the event of a telephone
redemption not authorized by them. To provide evidence of telephone
instructions, the transfer agent will record telephone conversations with
shareholders. The Fund will employ reasonable procedures to confirm that
instructions communicated by telephone are genuine. The failure by the Fund to
employ such procedures may cause the Fund to be liable for any losses incurred
by investors due to telephone redemptions based upon unauthorized or fraudulent
instructions.
A shareholder making a telephone withdrawal should call the Fund at
1-800-34-VISTA and state (i) the name of the shareholder appearing on the Fund's
records, (ii) the shareholder's account number with the Fund, (iii) the amount
to be withdrawn, (iv) whether such amount is to be forwarded to the
shareholder's designated bank account or address, and (v) the name of the person
requesting the redemption. Usually the proceeds are sent to the designated bank
account or address on the same Fund Business Day the redemption is effected,
provided the redemption request is received before 12 noon, New York City time
and on the next Fund Business Day if the redemption request is received after 12
noon, New York City time. The Fund reserves the
22
<PAGE>
right to terminate or modify the telephone redemption service in whole or in
part at any time and will notify shareholders accordingly.
EXCHANGE PRIVILEGE
Shareholders of the Chase Vista Select shares of the Fund may exchange at
relative net asset value for Vista Shares of any Chase Vista Money Market Fund
and the Chase Vista Select shares of any Reich & Tang sponsored funds and may
exchange at relative net asset value plus any applicable sales charges, for the
shares of the non-money market Chase Vista Funds, in accordance with the terms
of the then-current prospectus of the fund being acquired. The prospectus of the
Vista Mutual Fund into which shares are being exchanged should be read carefully
prior to any exchange and retained for future reference. With respect to
exchanges into a fund which charges a front-end sales charge, such sales charge
will not be applicable if the shareholder previously acquired his Chase Vista
Select shares by exchange from such fund. Under the Exchange Privilege, Chase
Vista Select shares may be exchanged for shares of other funds only if those
funds are registered in the states where the exchange may legally be made. In
addition, the account registration for the Chase Vista Funds into which Chase
Vista Select shares are being exchanged must be identical to that of the account
registration for the Fund from which shares are being redeemed. Any such
exchange may create a gain or loss to be recognized for Federal income tax
purposes. Normally, shares of the fund to be acquired are purchased on the
redemption date, but such purchase may be delayed by either Fund up to five
business days if the Fund determines that it would be disadvantageous by an
immediate transfer of the proceeds. (This privilege may be amended or terminated
at any time following 60 days' prior notice.) Arrangements have been made for
the acceptance of instructions by telephone to exchange shares if certain
preauthorizations or indemnifications are accepted and on file. Further
information is available from the Transfer Agent.
SPECIFIED AMOUNT AUTOMATIC WITHDRAWAL PLAN
Shareholders who own $10,000 or more of the shares of the Fund may elect to
withdraw shares and receive payment from the Fund of a specified amount of $100
or more automatically on a monthly or quarterly basis in an amount approved and
confirmed by the Manager. In order to make a payment, a number of shares equal
in aggregate net asset value to the payment amount are redeemed at their net
asset value so that the designated payment is received on approximately the 1st
or 15th day
23
<PAGE>
of the month following the end of the selected payment period. To the extent
that the redemptions to make plan payments exceed the number of shares purchased
through reinvestment of dividends and distributions, the redemptions reduce the
number of shares purchased on original investment, and may ultimately liquidate
a shareholder's investment.
The election to receive automatic withdrawal payments may be made at the time of
the original subscription by so indicating on the subscription order form. The
election may also be made, changed or terminated at any later time by the
participant. Because the withdrawal plan involves the redemption of Fund shares,
such withdrawals may constitute taxable events to the shareholder but the Fund
does not expect that there will be any realizable capital gains.
INVESTMENTS THROUGH
PARTICIPATING ORGANIZATIONS
Participant Investors may, if they wish, invest in the Fund through the
Participating Organizations with which they have accounts. "Participating
Organizations" are securities brokers, banks and financial institutions or other
industry professionals or organizations which have entered into shareholder
servicing agreements with the Fund. When instructed by its customer to purchase
or redeem Fund shares, the Participating Organization, on behalf of the
customer, transmits to the transfer agent a purchase or redemption order, and in
the case of a purchase order, payment for the shares being purchased. No
certificates are issued with respect to investments in the Fund.
Participating Organizations may confirm to their customers who are shareholders
in the Fund each purchase and redemption of Chase Vista Select Shares for the
customers' accounts. Also, Participating Organizations may send their customers
periodic account statements showing the total number of Chase Vista Select
shares owned by each customer as of the statement closing date, purchases and
redemptions of Chase Vista Select shares by each customer during the period
covered by the statement and the income earned by Chase Vista Select shares of
each customer during the statement period (including dividends paid in cash or
reinvested in additional Chase Vista Select shares).
Participating Organizations may charge Participant Investors a fee in connection
with their use of specialized purchase and redemption procedures offered to
Participant Investors by the Participating Organizations. In addition,
Participating Organizations offering purchase and redemption procedures similar
to those offered to shareholders who invest in the Fund directly may impose
charges, limitations, minimums and restrictions in addition to or different from
those applicable to shareholders who invest in the Fund directly. Accordingly,
the net yield to investors who invest through Participating Organizations may be
less than by investing in the Fund directly. A Participant Investor should read
this Prospectus in
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<PAGE>
conjunction with the materials provided by the Participating Organization
describing the procedures under which Chase Vista Select shares may be purchased
and redeemed through the Participating Organization.
The Glass-Steagall Act limits the ability of a depository institution to become
an underwriter or distributor of securities. Its the Fund management's position,
however, that banks are not prohibited from acting in other capacities for
investment companies, such as providing administrative and shareholder account
maintenance services and receiving compensation from the Manager for providing
such services. This is an unsettled area of the law, however, and if a
determination contrary to the Fund management's position is made by a bank
regulatory agency or court concerning shareholder servicing and administration
payments to banks from the Manager, any such payments will be terminated and any
shares registered in the banks' names, for their underlying customers, will be
re-registered in the name of the customers at no cost to the Fund or its
shareholders. In addition, state securities laws may differ on this issue from
the interpretations of Federal law expressed herein and banks and financial
institutions may be required to register as underwriters, distributors or
dealers pursuant to state law.
In the case of qualified Participating Organizations, orders received by the
transfer agent before 12 noon, New York City time, on a Fund Business Day,
without accompanying Federal Funds will result in the issuance of shares on that
day provided that the Federal Funds required in connection with the orders are
received by the Fund's transfer agent before 4:00 p.m., New York City time, on
that day. Orders for which Federal Funds are received after 4:00 p.m., New York
City time, will not result in share issuance until the following Fund Business
Day.
DISTRIBUTION AND
SERVICE PLAN
- -----------------------
Pursuant to Rule 12b-1 under the 1940 Act, the Securities and Exchange
Commission has required that an investment company which bears any direct or
indirect expense of distributing its shares must do so only in accordance with a
plan permitted by Rule 12b-1. The Fund's Board of Directors has adopted a
distribution and service plan (the "Plan") and, pursuant to the Plan, the Fund
and Reich & Tang Distributors, Inc. (the "Distributor") have entered into a
Distribution Agreement and a Shareholder Servicing Agreement (with respect to
Class A shares of the Fund only).
Reich & Tang Asset Management, Inc. serves as the sole general partner for
both Reich & Tang Asset Management L.P. and Reich & Tang Distributors, Inc.
Reich & Tang Asset Management L.P. serves as the sole limited partner of the
Distributor.
Under the Distribution Agreement, the Distributor, for nominal consideration and
as agent for the Fund, will solicit orders for the
25
<PAGE>
purchase of the Fund's shares, provided that any subscriptions and orders will
not be binding on the Fund until accepted by the Fund as principal.
Under the Shareholder Servicing Agreement, the Distributor receives from the
Fund with respect to Class A shares only, a service fee equal to .20% per annum
of the Class A shares' average daily net assets (the "Shareholder Servicing
Fee") for providing personal shareholders services and for maintenance of
shareholder accounts. The fee is accrued daily and paid monthly and any portion
of the fee may be deemed to be used by the Distributor for purposes of
distribution of Fund shares and for payments to Participating Organizations with
respect to their provision of such services to their clients or customers who
are shareholders of the Class A shares of the Fund. The Class B shareholders
will not receive the benefit of such services from Participating Organizations
and, therefore, will not be assessed a Shareholder Servicing Fee.
The Plan and the Shareholder Servicing Agreement provide that, in addition to
the Shareholder Servicing Fee, the Fund will pay for (i) telecommunications
expenses including the cost of dedicated lines and CRT terminals, incurred by
the Manager and Distributor in carrying out their obligations under the
Shareholder Servicing Agreement (with respect to Class A shares only), and (ii)
preparing, printing and delivering the Fund's prospectus to existing
shareholders of the Fund and preparing and printing subscription application
forms for shareholder accounts.
The Plan provides that the Manager may make payments from time to time from its
own resources, which may include the Management Fee and past profits for the
following purposes: (i) defray the costs of, and to compensate others, including
Participating Organizations with whom the Distributor has entered into written
agreements, for performing shareholder servicing and related administrative
functions on behalf of the Class A shares of the Fund; (ii) to compensate
certain Participating Organizations for providing assistance in distributing the
Class A shares of the Fund; and (iii) to pay the costs of printing and
distributing the Fund's prospectus to prospective investors, and to defray the
cost of the preparation and printing of brochures and other promotional
materials, mailings to prospective shareholders, advertising, and other
promotional activities, including the salaries and/or commissions of sales
personnel in connection with the distribution of the Class A shares of the Fund.
The Distributor may also make payments from time to time from its own resources,
which may include the Shareholder Servicing Fee and past profits, for the
purposes enumerated in (i) above. The Distributor in its sole discretion, will
determine the amount of such payments made pursuant to the Plan, provided that
such payments will not increase the amount which the Fund is required to pay to
the Manager and the Distributor for any fiscal year under the Investment
Management Contract or the Shareholder
26
<PAGE>
Servicing Agreement or the Administrative Services Contract in effect for that
year.
For the fiscal year ended January 31, 1997, the total amount spent pursuant to
the Plan for Class A shares was .41% of the average daily net assets of the
Fund, of which .20% of the average daily net assets was paid by the Fund to the
Manager, pursuant to the Shareholder Servicing Agreement and an amount
representing .21% of the average daily net assets was paid by the Manager (which
may be deemed an indirect payment by the Fund). Of the total amount paid by the
Manager, $430,874 was utilized for broker assistance payments, $6,281 for
compensation to sales personnel, $1,515 for travel and expenses, $46,455 for
Prospectus printing, and $122 on miscellaneous expenses.
FEDERAL INCOME TAXES
- ------------------------------
The Fund has elected to qualify under the Code as a regulated investment company
that intends to distribute "exempt-interest dividends" as defined in the Code.
The Fund's policy is to distribute as dividends each year 100% (and in no event
less than 90%) of its tax-exempt interest income, net of certain deductions, and
its investment company taxable income (if any). If distributions are made in
this manner, dividends designated as derived from the interest earned on
Municipal Obligations are "exempt-interest dividends" and are not subject to
regular Federal income tax although such "exempt-interest dividends" may be
subject to Federal alternative minimum tax. Dividends paid from taxable income,
if any, and distributions of any realized short-term capital gains (whether from
tax-exempt or taxable obligations) are taxable to shareholders as ordinary
income for Federal income tax purposes, whether received in cash or reinvested
in additional shares of the Fund. The Fund does not expect to realize long-term
capital gains, and thus does not contemplate distributing "capital gain
dividends" or having undistributed capital gain income within the meaning of the
Code. The Fund will inform shareholders of the amount and nature of its income
and gains in a written notice mailed to shareholders not later than 60 days
after the close of the Fund's taxable year. For Social Security recipients,
interest on tax-exempt bonds, including tax-exempt interest dividends paid by
the Fund, is to be added to adjusted gross income for purposes of computing the
amount of Social Security benefits includible in gross income. Interest on
certain "private activity bonds" (generally, a bond issue in which more than 10%
of the proceeds are used for a non-governmental trade or business and which
meets the private securities or payment test, or a bond issue which meets the
private loan financing test) issued after August 7, 1986 will constitute an item
of tax preference subject to the individual alternative minimum tax and
increases the individual alternative minimum tax. Corporations will be required
to include as an item of tax preference for purposes of the alternative minimum
tax, 75% of the amount by which their adjusted current
27
<PAGE>
earnings (including generally, tax-exempt interest) exceeds their alternative
minimum taxable income (determined without this tax preference item). In
addition, in certain cases Subchapter S corporations with accumulated earnings
and profits from Subchapter C years will be subject to a tax on "passive
investment income," including tax-exempt interest. Although the Fund intends to
maintain a $1.00 per share net asset value, a shareholder may realize a taxable
gain or loss upon the disposition of shares.
With respect to variable rate demand instruments, including participation
certificates therein, the Fund is relying on the opinion of Battle Fowler LLP,
counsel to the Fund, that it will be treated for Federal income tax purposes as
the owner thereof and that the interest on the underlying Municipal Obligations
will be tax-exempt from Federal income taxes to the Fund. Counsel has pointed
out that the Internal Revenue Service has announced that it will not ordinarily
issue advance rulings on the question of the ownership of securities or
participation interests therein subject to a put and could reach a conclusion
different from that reached by counsel. (See "Federal Income Taxes" in the
Statement of Additional Information.)
In South Carolina v. Baker, the U.S. Supreme Court held that the Federal
government may constitutionally require states to register bonds which they
issue and may subject the interest on such bonds to Federal tax if not
registered, and the Court further held that there is no constitutional
prohibition against the Federal government taxing the interest earned on state
or other municipal bonds. The Supreme Court decision affirms the authority of
the Federal government to regulate and control bonds such as the Municipal
Obligations and to tax such bonds in the future. The decision does not, however,
affect the current exemption from taxation of the interest earned on the
Municipal Obligations in accordance with Section 103 of the Code.
CONNECTICUT
INCOME TAXES
- ---------------------------------
The designation of all or a portion of a dividend paid by the Fund as an
"exempt-interest dividend" under the Code does not necessarily result in the
exemption of such amount from tax under the laws of any state or local taxing
authority. However, in the opinion of Day, Berry & Howard, special Connecticut
tax counsel to the Fund, exempt-interest dividends correctly designated as
derived from Connecticut Municipal Obligations received by the Fund are not
subject to the Connecticut Personal Income Tax.
Exempt-interest dividends that are not derived from Connecticut Municipal
Obligations and any other dividends of the Fund that are treated as ordinary
income for Federal income tax purposes are includible in a taxpayer's tax base
for purposes of the Connecticut Personal Income Tax.
While capital gain dividends are not anticipated by the Fund, capital
28
<PAGE>
gain dividends and amounts, if any, in respect of undistributed long-term
capital gains of the Fund would be includible in a taxpayer's tax base for
purposes of the Connecticut Personal Income Tax, as would gains, if any,
recognized upon the redemption, sale, or exchange of shares of the Fund, except
that capital gain dividends derived from obligations issued by or on behalf of
the State of Connecticut, its political subdivisions, or any public
instrumentality, state or local authority, district or similar public entity
created under Connecticut law are not subject to the tax.
Exempt-interest dividends, other than those derived from Connecticut Municipal
Obligations, are subject to the net Connecticut minimum tax.
All dividends paid by the Fund, including exempt-interest dividends are
includible in gross income for purposes of the Connecticut Corporation Business
Tax payable by corporations. However, the Corporation Business Tax allows a
deduction for a portion of amounts includible in gross taxable income thereunder
to the extent they are treated as dividends other than exempt-interest dividends
or capital gain dividends for Federal income tax purposes, but disallows
deductions for expenses related to such amounts.
Shareholders are urged to consult their tax advisors with respect to the
treatment of distributions from the Fund in their own states and localities.
GENERAL INFORMATION
- -----------------------------
The Fund was incorporated under the laws of the State of Maryland on March 8,
1985 and it is registered with the Securities and Exchange Commission as a
non-diversified, open-end management investment company.
The Fund prepares semi-annual unaudited and annual audited reports which include
a list of investment securities held by the Fund and which are sent to
shareholders.
As a general matter, the Fund will not hold annual or other meetings of the
Fund's shareholders. This is because the By-Laws of the Fund provide for annual
meetings only (a) for the election of directors, (b) for approval of the revised
investment advisory contracts with respect to a particular class or series of
stock, (c) for approval of revisions to the Fund's distribution agreement with
respect to a particular class or series of stock, and (d) upon the written
request of holders or shares entitled to cast not less than 25% of all the votes
entitled to be cast at such meeting. Annual and other meetings may be required
with respect to such additional matters relating to the Fund as may be required
by the 1940 Act including the removal of Fund director(s) and communication
among shareholders, any registration of the Fund with the Securities and
Exchange Commission or any state, or as the Directors may consider necessary or
desirable. Each Director serves until the next meeting of the shareholders
called for the purpose of considering the
29
<PAGE>
election or reelection of such Director or of a successor to such Director, and
until the election and qualification of his or her successor, elected at such a
meeting, or until such Director sooner dies, resigns, retires or is removed by
the vote of the shareholders.
For further information with respect to the Fund and the shares offered hereby,
reference is made to the Fund's registration statement filed with the Securities
and Exchange Commission, including the exhibits thereto. The Registration
Statement and the exhibits thereto may be examined at the Securities and
Exchange Commission and copies thereof may be obtained upon payment of certain
duplicating fees.
NET ASSET VALUE
- ----------------------
The net asset value of each Class of the Fund's shares is determined as of 12
noon, New York City time, on each Fund Business Day. Fund Business Day means
weekdays (Monday through Friday) except customary business holidays and Good
Friday. The net asset value of a Class is computed by dividing the value of the
Fund's net assets for each Class (i.e., the value of its securities and other
assets less its liabilities, including expenses payable or accrued but excluding
capital stock and surplus) by the total number of shares outstanding for such
Class.
The Fund's portfolio securities are valued at their amortized cost in compliance
with the provisions of Rule 2a-7 under the 1940 Act. Amortized cost valuation
involves valuing an instrument at its cost and thereafter assuming a constant
amortization to maturity of any discount or premium, except that if fluctuating
interest rates cause the market value of the Fund's portfolio to deviate more
than 1/2 of 1% from the value determined on the basis of amortized cost, the
Board of Directors will consider whether any action should be initiated.
Although the amortized cost method provides certainty in valuation, it may
result in periods during which the value of an instrument is higher or lower
than the price an investment company would receive if the instrument were sold.
The Fund intends to maintain a stable net asset value at $1.00 per share
although there can be no assurance that this will be achieved.
CUSTODIAN TRANSFER AGENT
AND DIVIDEND AGENT
- ---------------------------
Investors Fiduciary Trust Company, 801 Pennsylvania Street, Kansas City,
Missouri 64105 is custodian for the Fund's cash and securities. DST Systems,
Inc., 127 West 10th Street, Kansas City, Missouri 64105, is the transfer agent
and dividend agent for the Chase Vista Select shares of the Fund. The Fund's
custodian and transfer agents do not assist in, and are not responsible for,
investment decisions involving assets of the Fund.
30
<PAGE>
(This Page Intentionally Left Blank)
<PAGE>
[GRAPHIC OMITTED]
Chase Vista Service Center
P.O. Box 419392
Kansas City, Missouri 64141-6392
VSCT-1-6-97
<PAGE>
NEW ACCOUNT APPLICATION (FOR INITIAL INVESTMENT ONLY.)
CHASE VISTA MONEY MARKET FUNDS (VISTA SHARES)
1. Account Registration
For Individual: Use line 1
Note: To establish an account beneficiary, check TOD box below and designate
beneficiaries in the space provided, or include on a separate page:
TOD
For Joint Account: Use lines 1 & 2
In the case of joint registration, this account will be registered joint tenants
with rights of survivorship and not tenants in common, unless otherwise stated
by the investor.
For a Minor: Use line 3
For Trust, Corporation, Partnership or other legal entity: Use line 4
The Registered owner is a:
Corporation Trust
Partnership Non-Profit or Charitable Org.
Other
Please Print name clearly and exactly as account is to be registered
1. [ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ] [ ] [ ] [ ][ ] [ ] [ ][ ]
First Name M.I. Last Name
[ ] [ ] [ ]-[ ] [ ]-[ ] [ ] [ ][ ]
Social Security Number
2. [ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ]
First Name M.I. Last Name
[ ] [ ] [ ]-[ ] [ ]-[ ] [ ] [ ][ ]
Social Security Number
3. [ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ] [ ] [ ] [ ][ ] [ ] [ ][ ]
Custodian First Name M.I. Last Name
Custodian for
[ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ] [ ] [ ] [ ][ ] [ ] [ ][ ]
Minor's First Name M.I. Last Name
[ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ]
Minor's Social Security Number
Under the [ ] [ ] [ ][ ] [ ] [ ] [ ][ ] Uniform Gifts/Transfers to Minors Act.
Name of State
4. [ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ]
Name of Entity (If a Trust, include date of agreement and type)
[ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ]
Authorized Individual
[ ] [ ]-[ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ] [ ][ ] [ ] [ ][ ] [ ]
Tax I.D. Number Title
2. Mailing Address
[ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ]
Street Apt. No.
[ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ] [ ] [ ]
City State Zip
[ ] [ ] [ ] [ ] [ ] [ ]-[ ] [ ] [ ][ ] [ ] [ ] [ ] [ ] [ ] [ ]-[ ] [ ] [ ][ ]
Daytime Phone Number Evening Phone Number Country
3. Initial Investment $2,500 minimum initial investment per fund/account or $250
initial investment with a $200 systematic monthly purchase
A. Please indicate the name of the Fund you wish to invest in and make your
check payable to the Fund(s).
Chase Vista Fund Name (Fund Number) Amount
U.S. Government Money Market Fund (220) $________________
100% Treasury Money Market Fund (677) $________________
Treasury Plus Money Market Fund (678) $________________
Federal Money Market Fund (353) $________________
Cash Management Fund (223) $________________
Tax Free Money Market Fund (2) $________________
California Tax Free Money Market Fund (99) $________________
New York Tax Free Money Market Fund (3) $________________
Select Shares of Connecticut Daily
Tax Free Income Fund (140) $________________
Select Shares of New Jersey Daily
Municipal Income Fund (141) $________________
B. Please have your representative fill in this information if he/she opened
your account. This will avoid a duplicate order.
Trade Date _________ Confirm Number __________ Account Number ________________
<PAGE>
4. For Dealer Use Only
When opening your account through a representative, have him/her complete this
section
We guarantee the signature and legal capacity of the applicant.
________________________________________________________________________________
Dealer/Company Name Dealer Number Branch and Region Number (if applicable)
________________________________________________________________________________
Address
________________________________________________________________________________
Representative Name Rep. # Daytime Phone Number
Authorized Signature ____________________________________________
5. Distributions
Please indicate how you would like to receive distributions (check only one)
1. [ ] Dividends reinvested in additional shares
2. [ ] Dividends automatically deposited to your checking account (Please
complete Section 7)
3. [ ] Dividends mailed to your address in Section 2
6. Telephone Privileges
You will be able to execute telephone transactions by calling 1-800-34-VISTA
(800-348-4782) 24 hours a day for automated service, 9 am - 6 pm EST to speak
with a service representative
Telephone privileges will be provided to you automatically unless you elect not
to by checking the box associated with each privilege.
[] Telephone Purchases ($100 minimum)-Your purchase will be deducted from the
account you designate by completing Section 7.
[] Telephone Exchanges-Permits exchanges into established Chase Vista Funds
($100 minimum) or to new Chase Vista Funds ($2,500 minimum).
[] Telephone Redemptions-Permits redemptions by telephone with proceeds
deposited in the bank account you designate in Section 7 or mailed to your
address (maximum check amount $25,000).
7. Bank Account Designation
This section must be completed to permit certain options chosen in Sections 5,
6, 8 and 9
Account name must match the name in Section 1. A blank/voided check is required
for account and bank routing information.
_______________________________________________________________________________
Name of Bank Branch
_______________________________________________________________________________
Bank Address City State Zip
___________________________ [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ]
Type of Account (Checking/Savings) Account Number
[ ] Please check this Box to confirm voided check is attached.
8. Systematic Investment Plan
Amounts (minimum $100) will be automatically drawn on your bank account and
invested in your Chase Vista Fund account
Authorization Form
Invest automatically the amount of $_______________ on or about the _________
day. Purchases will be made monthly unless you wish to elect quarterly by
checking this box n. If the day you selected for your automatic purchase falls
on a holiday or a weekend, the purchase could be delayed. Funds will be drawn
from (check one):
1. [ ] my/our bank account indicated in Section 7.
2. [ ] my/our Chase Vista money market account and invested in another Chase
Vista Fund, subject to applicable sales charges.
Fund Name: ______________________________________ Class of Shares: [] A [] B
Your first automatic monthly investment will occur no sooner than two weeks
after the receipt of your application.
9. Systematic Redemption Plan
This is a convenient way to receive payments from your fund account. This Plan
is subject to minimum account balances, minimum monthly or quarterly
redemptions, and any applicable sales charges dependent upon the class of shares
you own.
Please make payments of $_______________ prior to the first day of every: n
month or n quarter beginning with the month of __________________________. Your
Application must be received in good order at least two weeks prior to first
actual redemption date.
Check One: [ ] Redemption proceeds automatically deposited to the account you
designate in Section 7, or
[ ] Mail check payable to:
________________________________________________________________________________
Individual or Company Name
________________________________________________________________________________
Street Address City State Zip
<PAGE>
10. Checkwriting Authorization & Signature (For A Shares Only)
[ ] Check here if you would like checkwriting privileges. ($500 minimum per
check.) Only one signature will be required on joint accounts.
CHECKWRITING DRAFTS WILL BE ISSUED 15 DAYS AFTER ACCOUNT IS FUNDED BY CHECK, 7
DAYS IF FUNDED BY AUTOMATED CLEARING HOUSE PURCHASE.
11. Acknowledgment, Certification & Signatures
This section must be signed in order to open a Chasse Vista account
UNDER THE PENALTIES OF PERJURY, THE UNDERSIGNED CERTIFIES THAT (1) HE/SHE IS A
CITIZEN OR RESIDENT OF N THE UNITED STATES OR N (STATE COUNTRY) __________, (2)
THE SOCIAL SECURITY NUMBER OR TAXPAYER IDENTIFICATION NUMBER SHOWN IN SECTION 1
IS CORRECT, AND (3) HE/SHE IS NOT SUBJECT TO BACKUP WITHHOLDING EITHER BECAUSE
HE/SHE HAS NOT BEEN NOTIFIED THAT HE/SHE IS SUBJECT TO BACKUP WITHHOLDING AS A
RESULT OF A FAILURE TO REPORT ALL INTEREST AND DIVIDENDS, OR THE INTERNAL
REVENUE SERVICE HAS NOTIFIED HIM/HER THAT HE/SHE IS NO LONGER SUBJECT TO BACKUP
WITHHOLDING. (IF THE UNDERSIGNED IS SUBJECT TO BACKUP WITHHOLDING, CROSS OUT THE
WORDS AFTER (3) ABOVE.)
By signing this Application, the undersigned (1) appoints his/her broker-dealer
or shareholder servicing agent, and/or authorized sub-agent, as his/her agent
for all transactions on his/her behalf with any Chase Vista Fund; (2) certifies
that he/she has received, reviewed and accepts this Application (including the
services described herein) and the current prospectus(es) of the Chase Vista
Fund(s) in which he/she is investing and accepts the related statement(s) of
additional information; and (3) agrees that all statements in this Application
apply to shares of any Chase Vista Fund or Chase Vista Select Shares of other
funds into which his/her shares are transferred.
Subject to the terms and conditions herein and in the applicable Fund's
prospectus and statement of additional information, the undersigned releases and
agrees to hold harmless the Chase Vista Funds and its agents and/or sub-agents
against any claim, liability, loss, damage, and expense for any act or failure
to act in connection with Fund shares, any related investment account,
privileges or services, and oral and written instructions relating thereto.
Shareholders should be aware that Chase and its affiliates may exchange among
themselves certain information about the shareholder and his account.
THE UNDERSIGNED CERTIFIES THAT HE/SHE (1) WAS NOT OFFERED ANY ADVICE OR
RECOMMENDATION ON INVESTING IN ANY FUND BY ANY COMMERCIAL BANK; AND (2)
UNDERSTANDS THAT (I) NO INVESTMENT ACCOUNT ESTABLISHED WITH RESPECT TO THE CHASE
VISTA FUNDS IS A DEPOSIT ACCOUNT AND NEITHER SUCH ACCOUNT NOR FUND SHARES ARE
FDIC INSURED OR INSURED BY THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY; (II)
FUND SHARES ARE NOT OBLIGATIONS OF, ENDORSED BY, NOR GUARANTEED BY, CHASE OR ANY
COMMERCIAL BANK; AND (III) THE UNDERSIGNED MUST MAKE HIS/HER OWN INVESTMENT
DECISIONS AND ASSUME ALL RISK OF LOSS - INCLUDING POSSIBLE LOSS OF PRINCIPAL -
RESULTING FROM DECISIONS TO PURCHASE, EXCHANGE OR SELL SHARES OF ANY FUND(S).
Check One: [] U.S. Citizen [] Resident Alien
[] Non-Resident Alien; Country of Tax Residency
The Internal Revenue Service does not require your consent to any provision of
this document other than the certifications required to avoid backup
withholding.
Individual or Custodial Accounts
____________________________________________
Signature of Individual or Custodian Date
____________________________________________
Signature of Joint Tenant (if any) Date
Corporations, Partnerships, Trusts, etc.
____________________________________________
Signature of Corporate Officer, General Partner, Trustee, etc. Date
____________________________________________
Signature of Corporate Officer, General Partner, Trustee, etc. Date
PLEASE COMPLETE THE FOLLOWING SECTIONS IF YOU ARE AN INSTITUTIONAL INVESTOR ONLY
12. PERSON(S) AUTHORIZED TO CONDUCT TRANSACTIONS
The following persons ("Authorized Person(s)") are currently officers, trustees,
general partners, or other authorized agents of the Shareholder. Any _____* of
the Authorized Person(s) is, by lawful and appropriate action of the
Shareholder, a person entitled to give instructions regarding purchases and
redemptions or to make inquiries, regarding your Account.
____________________________________________
Name/Title Signature Date
____________________________________________
Name/Title Signature Date
____________________________________________
Name/Title Signature Date
____________________________________________
Name/Title Signature Date
DST Systems, Inc. ("DST") may, without inquiry, act upon the instructions
(whether verbal, written, or provided by wire, telecommunication, or any other
process) of any person claiming to be an Authorized Person. Neither DST nor any
entity on behalf of which DST is acting shall be liable for any claims or
expenses (including legal fees) or for any losses, resulting from actions taken
upon any instructions believed to be genuine. DST may continue to rely on the
instructions made by any person claiming to be an Authorized Person until it is
informed through an amended Application that the person is no longer an
Authorized Person and it has a reasonable period (not to exceed one week) to
process the amended Application. Provisions of this Application shall be equally
applicable to any successor of DST.
*If this space is left blank, any one Authorized Person is authorized to give
instructions and make inquiries. Verbal instructions will be accepted from any
one Authorized Person. Written instructions will require signatures of the
number of Authorized Persons indicated in this space.
<PAGE>
13. Certificate of Authority Institutional investors must complete one of the
following two Certificates of Authority.
A. FOR CORPORATIONS AND UNINCORPORATED ASSOCIATIONS (With a Board of Directors
or Board of Trustees).
I, ____________________________________, Secretary of the above-named
Shareholder, do hereby certify that a meeting on _______________, at which a
quorum was present throughout, the Board of Directors (Board of Trustees) of the
shareholder duly adopted a resolution which is in full force and effect and in
accordance with the Shareholder's charter and by-laws, which resolution did the
following: (1) empowered the officer/trustee executing this Application to do
so, on behalf of the Shareholder; (2) empowered the above-named Authorized
Person(s) to effect securities transactions for the Shareholder on the terms
described above; (3) authorized the Secretary to certify, from time to time, the
names and titles of the officers of the Shareholder and to notify DST when
changes in officers occur; and (4) authorized the Secretary to certify that such
a resolution has been duly adopted and will remain in full force and effect
until DST receives a duly enacted amendment to the Certification form.
Witness my hand and seal on behalf of the Shareholder this ____ day of
___________________, 19___ Secretary_________________________________________
The undersigned officer (other than the Secretary) hereby certifies that the
foregoing instrument has been signed by the Secretary of the Shareholder.
_______________________________________________________
Certifying Officer of the Corporation or Unincorporated Association
B. PARTNERSHIPS AND TRUSTS (Even if you are the sole trustee)
The undersigned certify that they are all the general partners/trustees of the
Shareholder and that they have done the following under the authority of the
Shareholder's partnership agreement/trust instrument: (1) empowered the general
partner/trustee executing this Application to do so on behalf of the
shareholder; (2) empowered the above-named Authorized Person(s) to effect
securities transactions for the Shareholder on the terms described above; and
(3) authorized the Secretary to certify, from time to time, the names of the
general partners/trustees of the shareholder and to notify DST when changes in
general partners/trustees occur. This authorization will remain in full force
and effect until DST receives a further duly executed certification. If there
are not enough spaces here for all the necessary signatures, complete a separate
certificate containing the language of Certificate B and attach it to the
Application.
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
[GRAPHIC OMITTED]
Chase Vista Service Center
P.O. Box 419392
Kansas City, Missouri 64179
1-800-34-VISTA
VSCT-1-6-97
