<PAGE>
Chase Funds(SM). Invest With Power.
Semi-Annual Report for:
Chase Balanced Fund
Chase Core Equity Fund
Chase Equity Growth Fund
Chase Equity Income Fund
Chase Small Capitalization Fund
June 30, 1998
[CHASE FUNDS LOGO]
<PAGE>
Table of Contents
Chairman's Letter 3
Chase Funds Risk/Rewards 4
Chase Funds Shareholder Services 5
Fund Commentary and Portfolio of Investments
Chase Balanced Fund 6-13
Chase Core Equity Fund 14-21
Chase Equity Growth Fund 22-29
Chase Equity Income Fund 30-37
Chase Small Capitalization Fund 38-45
Statement of Assets and Liabilities 46
Statement of Operations 47
Statement of Changes in Net Assets 48
Notes to Financial Statements 49-53
Financial Highlights 54-58
<PAGE>
Chase Equity Funds
Chairman's Letter
August 10, 1998
Dear Fellow Shareholders
We are pleased to present this semi-annual report for the six month period
ended June 30, 1998.
Stocks Posted Solid Gains As Economy Continued to Grow
In the first six months of 1998, the stock market recorded strong
performance thanks to a number of factors, including a healthy economy, low
interest rates, benign inflation, good corporate earnings and solid cash flows
into equity mutual funds. Some of the better performing stocks were retailers,
health care providers and financial companies.
The market got off to a slow start in January, as investors worried about
the market's future prospects following the best consecutive three-year
performance period in stock market history. Equities, however, bounced back in
February, with the Dow Jones Industrial Average hitting record highs. A good
environment for equities helped the major averages continue their advance in
March.
From April through June, the market was choppy amidst earnings worries due
largely to the economic turmoil in Asia. During this period, a select number
of "mega-cap" growth stocks were among the market's better performers, along
with stocks in the consumer cyclical, retail, housing and auto sectors.
Bonds Rallied on Fears of a Slowing Global Economy
The bond market recorded solid returns, fueled by low inflation and falling
interest rates.
Early in 1998, bonds benefited from several reports suggesting inflation was
under control. Interest rates stayed in a relatively narrow range midway
through the period due partly to two opposing forces: concerns of a slowing
global economy brought on by the Asian financial crisis, and fears of higher
U.S. inflation ignited by the strengthening domestic economy.
By June, bond prices rallied as investors once again grew concerned over the
economic turmoil in Asia. Throughout the period, the Federal Reserve Board
maintained its neutral monetary policy.
Overall, it was another strong period for those invested in the U.S. stock
market. As always, all of us at Chase Funds encourage you to maintain your
investing discipline in the months and years ahead.
Sincerely,
/s/ Sarah E. Jones
3
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Chase Funds
Risks/Rewards
HIGHEST RISK / RETURN
| Small Company Funds
| Diversified International Stock Funds
| Growth Funds
| Growth & Income Funds
| Equity Income Funds
| Balanced Funds
| Long-Term Bond Funds
| Intermediate-Term Bond Funds
| Short-Term Bond Funds
| Money Market Funds
LOWEST RISK / RETURN
CONSIDER YOUR INVESTMENT
RISK
& YOUR OVERALL RETURN
4
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Chase Funds
Shareholder Services
Telephone Exchange Privilege
Investors wishing to make a change within their Chase Funds accounts may do so
quickly and easily via telephone. This service allows you to respond to
changes in your goals and needs immediately without the burdensome paperwork
and lengthy delays often associated with selling one investment then
purchasing another. The sale of shares from one Chase Fund and purchase of
shares in another is simultaneous with Telephone Exchange.
Automatic Reinvestment
Dividends and capital gains earned in your Chase Funds account can either be
paid to you on a regular basis or automatically reinvested into your account
to purchase additional shares of the same fund. This service is particularly
valuable to growth-oriented investors who do not require current income from
their invested principal. The reinvested dividends compound over time,
enhancing returns and generating additional long-term growth potential.
Systematic Investing*
After opening a Chase Funds account with a minimum $1,000 initial investment,
you can automatically make regular investments of $100 or more through
automatic, periodic deductions from your bank checking or savings account.
Shareholders using this service benefit not only by accumulating investment
assets but also through the process of "dollar cost averaging".
Dollar cost averaging is an investment strategy that has shown that investing
the same amount of money on a regular basis in a fluctuating value investment
over time results in a lower actual price paid per share than the average
price per share over time. That is because when the share price is lower, more
shares are purchased and when it is higher, fewer are purchased. Dollar cost
averaging is highly recommended by investment experts as a prudent and highly
effective approach to wealth accumulation.
* Systematic investing does not assure a profit and does not protect against
loss in declining financial markets. An investor should be prepared to
continue the program of investing at regular intervals, even during economic
down turns.
Systematic Withdrawal
For investors who require an income stream from their Chase Fund(s) investment
account(s), regularly scheduled withdrawals of a specified value of $50 or
more can be sent to them by check on a monthly, quarterly or semi-annual
basis.
Check Writing Privilege
The Chase Money Market Fund offers investors the option of accessing account
assets quickly and easily simply by writing a check to redeem shares.
Chase Funds Website
Shareholders of the Chase Funds have unlimited access to their accounts and
first class Chase Funds customer service via the internet at:
http://www.chasefunds.com
Please note, these services are available to all shareholders investing
directly into any Chase Fund. If you purchase these funds through a financial
intermediary, please check with your service provider to determine
availability of these services.
5
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Chase Balanced Fund
as of June 30, 1998
How the Fund Performed
Chase Balanced Fund had a total return of 13.34% for the
six-month period ended June 30, 1998.
How the Fund Was Managed
Overweighted positions in industry groups that outperformed the broader market
and favorable sector rotation in fixed-income securities were largely
responsible for the Fund's investment results.
The Fund enjoyed good performance from its investments in health care,
technology and consumer-oriented stocks, as stocks in these sectors produced
strong investment results. Health care stocks performed particularly well late
in the period due mainly to favorable earnings reports. Technology stocks also
recorded strong results as the period progressed and the impact of the Asian
economic crisis on these shares diminished. A number of consumer-oriented
stocks rallied thanks in part to strength in the economy and growing consumer
confidence. Finally, the Fund's financial services stocks turned in good
performance due to increased merger and acquisition activity and lower
interest rates.
In the fixed-income portion of the portfolio, the decline in interest rates
enabled the Fund to realize good investment results from its bond holdings.
Over the last six months, the yield on the benchmark 30-year Treasury bond
declined approximately one-third of one percent. The drop in yield was largely
due to subdued global economic growth brought on by the Asian crisis and
several weaker-than-expected economic reports late in the period.
Where the Fund May Be Headed
The equity portion of the Fund is positioned to potentially capitalize on what
management believes will be an environment of slower economic growth due to
ongoing problems in Asia. Since a slower economy typically translates to lower
interest rates, management expects to maintain its slightly
higher-than-average duration within the fixed-income portion of the portfolio.
As long as inflation and interest rates remain low, our outlook for equities
is positive. With the Asian crisis still hanging like a cloud over the global
economy, stock selection will be critically important.
6
<PAGE>
Chase Balanced Fund
as of June 30, 1998
Fund Facts
Objective Current income and capital growth
Primary Investments Common stock, preferred stock and
fixed income securities issued by
corporations, the U.S. government
and its agencies
Suggested investment time frame Long-term
Market benchmark Lehman Government/
Corporate Index
S&P 500
Lipper Funds Universe Balanced Funds Index
Inception date 3/29/88
Newspaper symbol Balanced
Dividend Frequency Quarterly
Net Assets $46.5 million
Investment Style/Market Cap Maturity/Quality
---------------- ----------------
| | |////| Large |////| | | High
| | |////| |////| | |
---------------- ----------------
| | | | Med | | | | Med
| | | | | | | |
--------------- ---------------
| | | | Small | | | | Low
| | | | | | | |
---------------- ----------------
Value Blend Growth Short Int. Long
Equity Fixed Income
7
<PAGE>
Chase Balanced Fund
as of June 30, 1998
10-Year Performance*
This chart shows what the long-term growth would have been of a hypothetical
investment in the Chase Balanced Fund compared to its key benchmarks. This is
where you see the Fund's long-term trend. This chart is for illustrative
purposes only.
Lipper
Chase Balanced Lehman
Balanced Funds S&P 500 Govt./Corp.
Date Fund Index Index Index
- --------- --------- --------- --------- ----------
6/30/1988 $ 10000 $ 10000 $ 10000 $ 10000
10000 10054 10110.6 9942
10000 10046 10198.1 9875.39
10000 10397.6 10666 10098.6
10000 10343.5 10625.6 10041
10000 10164.6 10264.9 10067.1
10084.4 10455.3 10702.2 10287.6
10413 10657 11000.2 10469.7
10517 10567.5 10843.4 10351.4
10346.5 10659.5 11032.6 10386.6
10574.6 11100.8 11840.6 10524.7
11021.5 10954.2 11545.5 10444.7
11007.9 11090.1 11814.8 10500.1
11151.6 11454.9 12428.3 10722.7
11469.7 11815.8 12931.1 10986.5
11850.2 11876 12857.8 11344.6
11994.7 12500.7 14018.7 11580.6
12255.4 12594.5 14292.8 11401.1
12388.4 12576.8 14234.8 11451.2
12444.7 12458.6 13904.2 11741
12370.1 12619.3 14187.7 11846.6
12426 12759.4 14528.5 11864.4
12505 12209.5 13553 11701.9
12028.9 12297.4 13727.6 11727.6
12134 12459.7 14091.4 11728.8
12244.9 12234.2 13739.8 11620.9
12049.6 12981.7 15079.5 11957.9
12679.4 13036.2 14977.8 12151.6
12769.2 13028.4 14929.8 12302.3
12906.1 12305.3 13580.3 12123.9
12328.6 11981.7 12919.4 12224.5
12083.3 11985.3 12864.3 12387.1
12071.8 12541.4 13695.9 12657.1
12472 12842.4 14077.4 12848.3
12672.9 13293.2 14690.5 12992.2
13148.4 13906 15741.1 13103.9
13717.7 14179.9 16122.3 13194.3
14173.7 14233.8 16160.4 13346
13949.9 14686.4 16857.6 13408.8
14209.4 14217.9 16085.3 13394
13782.8 14705.6 16835 13562.8
14245.1 15073.2 17233.9 13874.7
14619.9 15118.5 16945.5 14164.7
14641.4 15363.4 17173.2 14290.8
14824.9 15025.4 16481.3 14433.7
14498.8 16161.3 18366.2 14920.1
15735.1 16025.6 18024.1 14699.3
15425.8 16217.9 18257.5 14777.2
15564.2 15971.4 17902.4 14695.9
15269.1 16143.9 18428 14784.1
15285.1 16353.7 18518.3 15070.9
15459.2 16227.8 18242.7 15292.5
15312.2 16704.9 18987.9 15683.9
15804.5 16549.5 18599.2 15823.5
15736.2 16739.9 18817.8 16038.7
15910.7 16741.5 18882.7 15793.3
15830.2 17123.2 19525.7 15779.1
16267.2 17368.1 19765.2 16050.5
16572.2 17600.8 19930.5 16400.4
16781.6 17817.3 20202.1 16741.5
16758 18184.4 20628.4 16798.5
17041.7 18046.2 20129.8 16927.8
16706.5 18362 20668.3 16919.4
17022.4 18556.6 20728.8 17303.4
17151.2 18630.8 20645.5 17414.2
17009.6 19193.5 21428.8 17814.7
17550.9 19233.8 21264.5 17877
17494.7 19431.9 21704.4 17950.3
17563.1 19121 21497.6 17747.5
17277.3 19442.2 21757.5 17825.6
17568.1 19951.6 22497.2 18093
17926 19560.5 21886.7 17698.5
17615.8 18850.5 20932.4 17264.9
16983 18892 21200.8 17121.6
16845.2 19037.4 21548.7 17090.8
16868.1 18706.2 21020.5 17051.5
16731.5 19129 21710.8 17392.5
17124.5 19607.2 22601 17399.5
17465 19254.2 22048.4 17136.8
17193.3 19313.9 22543.8 17117.9
17347.5 18863.9 21722.7 17087.1
17045.2 19045 22044.9 17199.9
17169.9 19281.2 22616.5 17530.1
17396.5 19842.2 23497.9 17936.8
17897.2 20193.5 24191.3 18057
18218.7 20573.1 24903.7 18308
18455.4 21231.4 25899.1 19075.1
18990.6 21607.2 26500.8 19227.7
19569.1 22063.2 27379.5 19152.7
20021.8 22235.2 27448.3 19397.8
20157.6 22766.7 28606.6 19595.7
20485.6 22709.8 28504.5 19883.8
20610 23416 29755.8 20211.8
21046.7 23783.7 30328.9 20509
21262.2 24214.1 31361.3 20636.1
21583.2 24226.2 31652 20198.6
21591.9 24318.3 31956.8 20029
21550.8 24478.8 32427.9 19890.8
21835.3 24728.5 33264.2 19857
22127.3 24810.1 33390.9 20123
22085.9 24172.5 31915.7 20169.3
21475.1 24554.4 32588.8 20120.9
21729.2 25465.4 34422.9 20479.1
22494.2 26005.2 35372.3 20956.2
22941.4 27217.1 38046.1 21341.8
23954.7 26890.5 37292.4 21104.9
23667.8 27721.4 39622.4 21130
24758.1 27824 39933.1 21174.6
24843.8 27014.3 38292.2 20922.9
24026.8 27827.4 40578.2 21228.9
25169.2 28968.3 43048.7 21427
26159.5 29927.2 44977.2 21684.2
26939.8 31633 48556.1 22347.6
28640.4 30630.3 45836 22096.7
27570 31852.4 48346.4 22444.1
28650.4 31272.7 46731.6 22803.7
28290.3 31848.1 48894.8 22923.7
28990.6 32351.3 49734.6 23164.3
29270.7 32581 50284.6 23490.8
29820.9 33874.5 53911.1 23443.1
30691.2 34911 56671.9 23515.4
31352.4 35155.4 57242 23633.5
31694.6 34800.3 56258.1 23887.6
6/30/1998 33175.2 35430.2 58559 24131.2
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the stock markets, tends to
be more volatile than the long-term trend.
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Premier Shares 23.15% 19.22% 14.10% 12.26%
* Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than the
original cost.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Balanced Fund, the Lehman Government/Corporate Index,
the Standard & Poor's 500 Stock Index and the Lipper Balanced Funds Index from
June 30, 1988 to June 30, 1998. The performance of the Fund assumes the
reinvestment of all dividends and capital gains and does not include a sales
charge. The performance of the indices does not include a sales charge and has
been adjusted to reflect the reinvestment of all dividends and capital gains
on the securities included in the benchmark. Premier Shares carry a $100,000
minimum initial investment and carry no sales charge.
Chase Balanced Fund is the successor to the AVESTA Trust-Balanced Fund.
Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to
Mutual Fund Investment ("MFIT"), a Massachusetts business trust. As part of
the conversion, the Fund transferred all of its assets to Chase Balanced Fund,
a new investment portfolio of MFIT.
Chase Balanced Fund, unlike the AVESTA Trust-Balanced Fund, is subject to
certain diversification, distribution and other requirements imposed under the
Internal Revenue Code, which may impact performance.
The Lipper Balanced Funds Index represents performance of the largest 30
balanced funds. Each of these funds invests in a portfolio of stocks and
bonds. Lipper is an independent mutual fund performance monitor whose results
are based on total return and do not reflect a sales charge. An individual
cannot invest directly in an index.
The Standard and Poor's 500 Stock Index is an unmanaged broad-based index that
replicates the U.S. stock market. It includes 500 widely held common stocks.
Total return figures represent the reinvestment of dividends. An individual
cannot invest directly in an index.
The Lehman Government/Corporate Index includes the Government and Corporate
Bond Indices, including U.S. Government Treasury and agency securities,
corporate and yankee bonds. The index is unmanaged and reflects the
reinvestment of dividends. An individual cannot invest directly in an index.
8
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Chase Balanced Fund
as of June 30, 1998
How Much of the Fund Was Invested
[PIE CHART]
Investments 99.3%
Cash/Other 0.7%
What the Fund Invested In
Percentage of Total Portfolio Investments
[PIE CHART]
Capital Goods 1.2%
Basic Materials 0.9%
Asset Backed Securities 1.6%
Cash Equivalent & Short Term Paper 2.2%
US Treasury Securities 31.1%
Mortgage Backed Securities 3.4%
Utilities 2.7%
Technology 13.2%
Health Care 12.1%
Financial 7.3%
Energy 1.7%
Consumer Staples 5.5%
Consumer Cyclicals 17.1%
Top Ten Equity Holdings
1. Microsoft Corp. (3.0%) Develops, manufactures, licenses and supports
computer software products.
2. General Electric Corp. (2.7%) A diversified manufacturing, technology and
services company. Operations include appliance manufacturing, capital
services, information services, and electrical distribution.
3. Coca-Cola Co. (2.4%) Manufactures, markets, and distributes soft drink
concentrates and syrups, some finished beverages, and certain juice and
juice-drink products.
4. Merck & Co. (1.9%) A worldwide health products company. It specializes in
human health, managed pharmaceutical care, manufacturing, research, and
vaccine. Merck's products include treatment for osteoporosis and high
blood pressure.
5. Wal-Mart Stores, Inc. (1.6%) The "Wal-Mart" Company's discount stores and
"Supercenters" offer merchandise such as apparel, housewares, small
appliances, electronics, hardware, and other products.
6. Pfizer, Inc. (1.6%) A research based, global health care company
specializing in health care, animal health, and consumer health care. The
Company's products include bone and joint devices, anti-inflammatory
medicines, and personal care products.
7. Lucent Technologies, Inc. (1.5%) Designs, develops, manufactures, and
distributes communications systems, software, and products worldwide.
8. Procter & Gamble Co. (1.3%) Manufactures and markets consumer products for
laundry and cleaning, paper, beauty care, food, beverages and health care.
9. American Express Co. (1.3%) Provides travel related, financial advisory,
and international banking services throughout the world.
10. American International Group (1.2%) Provides a variety of insurance and
financial services in the U.S. and internationally. The Company writes
property, casualty, marine, life, and financial services insurance.
Top 10 equity holdings comprised 18.5% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
9
<PAGE>
Chase Balanced Fund
Portfolio of Investments June 30, 1998 (unaudited)
Shares Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- 97.3%
- -------------------------------------------------------------------------------
Common Stock -- 53.3%
Banking -- 0.5%
1,400 Citicorp $ 208,950
---------
Biotechnology -- 0.6%
4,050 Amgen, Inc.* 264,769
---------
Chemicals -- 0.9%
5,700 DuPont (EI) deNemours 425,363
---------
Computer Software -- 6.0%
5,900 BMC Software, Inc.* 306,431
4,750 Cisco Systems, Inc.* 437,297
3,200 Computer Associates International 177,800
12,800 Microsoft Corp.* 1,387,200
8,400 Platinum Technology, Inc.* 239,925
5,400 Sterling Commerce, Inc.* 261,900
---------
2,810,553
---------
Computers / Computer Hardware -- 1.8%
4,400 Compaq Computer Corp. 124,850
3,600 Dell Computer Corp.* 334,125
6,300 EMC Corp.* 282,319
1,950 Hewlett-Packard Co. 116,756
---------
858,050
---------
Consumer Products -- 5.6%
2,800 Colgate-Palmolive Co. 246,400
7,900 Gillette Co. 447,831
10,800 Jones Apparel Group, Inc.* 394,875
11,300 Philip Morris Companies, Inc. 444,938
6,800 Procter & Gamble Co. 619,225
3,100 Ralston Purina Group 362,119
2,700 Service Corp. International 115,763
---------
2,631,151
---------
Diversified -- 0.7%
5,100 Tyco International Ltd. 321,300
---------
Electronics / Electrical Equipment -- 5.3%
13,900 General Electric Co. 1,264,900
6,550 Intel Corp. 485,519
8,288 Lucent Technologies, Inc. 689,458
---------
2,439,877
---------
Financial Services -- 3.4%
5,300 American Express Co. 604,200
7,200 Charles Schwab Corp. 234,000
7,500 Federal National Mortgage Assoc. 455,625
3,100 Morgan Stanley, Dean Witter, Discover and Co. 283,263
---------
1,577,088
---------
See notes to financial statements.
10
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Chase Balanced Fund
Portfolio of Investments June 30, 1998 (unaudited) (continued)
Shares Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------------------------
Food / Beverage Products -- 4.3%
13,200 Coca-Cola Co $1,128,600
6,800 Coca-Cola Enterprises, Inc. 266,900
8,950 PepsiCo., Inc. 368,628
3,100 Unilever NV, ADR (Netherlands) 244,706
----------
2,008,834
Health Care / Health Care Services -- 0.6%
1,850 Guidant Corp. 131,928
2,200 Medtronic, Inc. 140,250
----------
272,178
----------
Insurance -- 1.2%
3,900 American International Group 569,400
----------
Manufacturing -- 0.5%
3,600 Illinois Tool Works, Inc. 240,075
----------
Multi-Media -- 0.8%
4,900 Gannett Co., Inc. 348,206
----------
Oil & Gas -- 1.7%
3,600 Camco International, Inc. 280,350
4,300 Exxon Corp. 306,644
2,700 Schlumberger, Ltd. 184,444
----------
771,438
----------
Pharmaceuticals -- 9.7%
7,500 Abbot Laboratories 306,563
5,700 American Home Products Corp. 294,975
4,900 Bristol-Myers Squibb Co. 563,193
6,100 Eli Lilly & Co. 402,981
6,700 Johnson & Johnson 494,125
6,650 Merck & Company, Inc. 889,437
6,600 Pfizer, Inc. 717,337
4,200 Schering-Plough Corp. 384,825
6,200 Warner-Lambert Co. 430,125
4,483,561
----------
Photographic Equipment -- 0.5%
3,450 Eastman Kodak Co. 252,066
----------
Retailing -- 6.4%
6,500 Bed Bath & Beyond, Inc.* 336,781
8,900 Dayton-Hudson Corp. 431,650
2,400 Federated Department Stores* 129,150
7,150 Gap, Inc. 440,619
3,900 Home Depot, Inc. 323,944
11,200 Kroger Co.* 480,200
7,100 OfficeMax, Inc.* 117,150
12,000 Wal-Mart Stores, Inc. 729,000
----------
2,988,494
----------
See notes to financial statements.
11
<PAGE>
Chase Balanced Fund
Portfolio of Investments June 30, 1998 (unaudited) (continued)
Shares Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------------------------
Telecommunications -- 2.8%
3,650 AT&T Corp. $ 208,506
4,700 GTE Corp. 261,437
7,600 SBC Communications, Inc. 304,000
7,950 Scientific-Atlanta, Inc. 201,731
6,800 WorldCom, Inc.* 329,375
----------
1,305,049
----------
Total Common Stock
(Cost $15,768,425) 24,776,402
----------
Warrants -- 0.0%
Utilities --
70 York Research Corporation expires 09/30/98
(Cost $0) 0
----------
Principal
Amount
(USD)
U.S. Treasury Securities -- 30.9%
U.S. Treasury Notes & Bonds,
$ 600,000 5.500%, 01/31/03 599,532
1,800,000 5.500%, 03/31/03 1,798,866
1,800,000 5.625%, 02/15/06 1,807,308
900,000 5.625%, 11/30/98 901,125
980,000 5.875%, 02/15/04 998,071
1,500,000 6.000%, 08/15/00 1,514,295
1,750,000 6.000%, 02/15/26 1,820,542
750,000 6.125%, 08/15/07 780,352
1,560,000 6.125%, 11/15/27 1,671,634
625,000 6.250%, 08/15/23 669,137
1,625,000 6.500%, 11/15/26 1,804,514
----------
Total U.S. Treasury Securities
(Cost $13,922,739) 14,365,376
----------
Corporate Notes & Bonds -- 8.1%
Automotive -- 0.5%
225,000 Ford Motor Credit Co., 6.250%, 12/08/05 225,063
----------
Banking -- 0.9%
400,000 Bankamerica Corp., 6.200%, 02/15/06 397,640
----------
Consumer Products -- 0.7%
325,000 Procter & Gamble Co., 6.450%, 01/15/26 333,362
----------
Financial Services -- 1.3%
500,000 Associates Corp. of North America, 7.520%, 3/29/00 514,470
100,000 Caterpillar Financial Services, 6.950%, 11/01/00 102,366
----------
616,836
----------
Food / Beverage -- 1.1%
500,000 Anheuser-Busch Companies, Inc., 6.750%, 08/01/03 517,170
----------
See notes to financial statements.
12
<PAGE>
Chase Balanced Fund
Portfolio of Investments June 30, 1998 (unaudited) (continued)
Shares Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- (concluded)
- -------------------------------------------------------------------------------
Health Care / Health Care Services -- 1.3%
$600,000 Abbott Laboratories, 5.600%, 10/01/03 $ 592,260
Restaurants -- 1.0%
450,000 McDonald's Corp., 7.050%, 11/15/25 465,390
----------
Retailing -- 1.3%
600,000 Wal-Mart Stores, 6.750%, 05/15/02 615,954
----------
Total Corporate Notes & Bonds
(Cost $3,585,759) 3,763,675
----------
Mortgage Backed Securities -- 3.4%
Mortgage Backed Pass Thru Securities -- 3.4%
817,183 Federal National Mortgage
Association, Pool 406258, 6.500%, 01/01/28 813,857
773,213 Government Mortgage Association
Corp., Pool 416156, 6.500%, 02/15/26 772,486
----------
Total Mortgage Backed Securities
(Cost $1,574,157) 1,586,343
----------
Asset Backed Securities -- 1.6%
132,171 Ford Credit Grantor Trust, Ser. 1995-B,
Class A, 5.900%, 10/15/00 132,336
600,000 PNC Student Loan Trust I, Ser. 1997-2,
Class A2, 6.138%, 1/25/00 603,960
----------
Total Asset Backed Securities
(Cost $732,227) 736,296
----------
Total Long-Term Investments
(Cost $35,583,307) 45,228,092
- -------------------------------------------------------------------------------
Shares Issuer Value
- -------------------------------------------------------------------------------
Short-Term Investments -- 2.2%
- -------------------------------------------------------------------------------
Money Market Fund -- 0.7%
312,000 Fidelity Colchester Street Trust Government Fund
(Cost $312,000) 312,000
----------
Principal
Amount
(USD)
Repurchase Agreement -- 1.5%
$686,000 Merrill Lynch & Co., Inc., 5.50% due 07/01/98,
(Dated 06/30/98, Proceeds $686,105, Secured
by U.S. Treasury Note $675,402, 7.75% due
11/30/99; Market $699,427)
(Cost $686,000) 686,000
----------
Total Short-Term Investments
(Cost $998,000) 998,000
- ------------------------------------------------------------------------------
Total Investments -- 99.5%
(Cost $36,581,307) $46,226,092
- ------------------------------------------------------------------------------
See notes to financial statements.
13
<PAGE>
Chase Core Equity Fund
as of June 30, 1998
How the Fund Performed
Chase Core Equity Fund had a total return of 17.74% for the six-month
period ended June 30, 1998.
How the Fund Was Managed
Overweighted positions in industries that outperformed the broader market and
favorable stock selection were largely responsible for the Fund's investment
results.
The Fund, which invested nearly half of its total assets among three sectors
(health care, consumer and technology goods), enjoyed strong investment
results from a number of high-quality stocks with solid earnings growth.
Pfizer was one of the Fund's best performing stocks in the health care sector.
Coca-Cola was among its top stocks in the consumer goods group, and Microsoft
proved to be one of the Fund's most lucrative technology holdings. It's worth
noting that the Fund's underweighting in technology stocks early in the period
helped performance. In the beginning of 1998, many of these issues declined
sharply due to investor concerns about their earnings growth prospects due to
the Asian economic crisis.
Stocks in other sectors that also contributed positively to the Fund's
performance included American Express and American International Group in the
financial services sector and Wal-Mart in the retail sector.
Where the Fund May Be Headed
In the coming months, we expect the domestic economy to moderate due to the
economic turmoil in Asia. This could have an impact on corporate earnings and
lead to the kind of market volatility that we saw late in the period. However,
in our opinion, the market should hold up well if interest rates and inflation
remain low.
While many of the companies in which we invest have enjoyed a strong run-up in
price, we continue to believe businesses still have good upside potential.
Historically, investors have looked to high-quality, large-cap stocks with
solid earnings growth prospects during periods of uncertainty. And if the
problems in Asia persist, we believe investors may continue to look to invest
in these types of stocks in the months ahead.
14
<PAGE>
Chase Core Equity Fund
as of June 30, 1998
Fund Facts
Objective Capital appreciation and
current income
Primary Investments Common stock, preferred stock and
convertible securities of well-known
companies
Suggested investment time frame Long-term
Market benchmark S&P 500 Index
Lipper Funds Universe Growth and Income Funds Index
Inception date 4/1/93
Newspaper symbol CoreEq
Dividend Frequency Quarterly
Net Assets $70.2 million
Investment Style/Market Cap
----------------
| |////| | Large
| |////| |
----------------
| | | | Med
| | | |
---------------
| | | | Small
| | | |
----------------
Value Blend Growth
15
<PAGE>
Chase Core Equity Fund
as of June 30, 1998
Life of Fund Performance*
This chart shows what the long-term growth would have been of a hypothetical
investment in the Chase Core Equity Fund compared to its key benchmarks. This
is where you see the Fund's long-term trend. This chart is for illustrative
purposes only.
Lipper Growth
Chase &
Core Equity Income Funds S&P 500
Date Fund Index Index
- -------- --------- --------- ---------
4/1/1993 $ 10000 $ 10000 $ 10000
9795.02 9876 9758.3
9899.36 10064.6 10019.3
10006.1 10128 10048.7
10044.8 10182.7 10008.3
10470.6 10565.6 10388
10552.7 10578.3 10308.3
10715 10742.2 10521.6
10540.9 10570.4 10421.3
10795.1 10821.9 10547.3
10940.7 11193.1 10906
10645.8 10908.8 10610
10196.6 10471.4 10147.4
10261 10612.8 10277.5
10382.3 10739 10446.1
10097.7 10525.3 10190.1
10368.9 10813.7 10524.7
10743.9 11224.6 10956.2
10570.2 10960.9 10688.4
10586.5 11082.5 10928.5
10220.9 10672.5 10530.5
10360.4 10777.1 10686.7
10443.7 10946.3 10963.8
10759.9 11355.7 11391
11035.6 11622.5 11727.2
11110.4 11943.3 12072.5
11341.3 12344.6 12555.1
11630.4 12577.9 12846.7
12202.9 13000.5 13272.7
12158.4 13125.3 13306
12493 13516.5 13867.6
12327.5 13332.6 13818.1
12974.1 13906 14424.7
13005.6 14136.8 14702.5
13455.8 14556.6 15203
13604.7 14760.4 15343.9
13751 14947.9 15491.7
13883.5 15176.6 15720
14177.4 15398.2 16125.4
14313 15332 16186.9
13653.2 14708 15471.7
13929.3 15150.7 15798
14541.7 15826.4 16687.1
15088.6 16185.6 17147.4
16223.8 17228 18443.5
15937.4 17059.2 18078.2
16970.3 17820 19207.7
16997.7 17971.5 19358.3
16326.4 17346.1 18562.8
17412 17986.1 19671
18340 19032.9 20868.6
19130 19779 21803.5
20890 21199.2 23538.5
19570 20404.2 22219.8
20670 21434.6 23436.8
20030 20723 22654
20840 21301.1 23702.7
21250 21644.1 24109.7
21530 21685.2 24376.4
22840 23044.9 26134.4
23789 24111.8 27472.8
24119.3 24242.1 27749.1
23729 23871.2 27272.1
6/30/1998 25020 24157.6 28387.6
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the stock markets, tends to
be more volatile than the long-term trend.
Since
Inception
1 Year 3 Years 5 Years 4/1/93
------ ------- ------- ---------
Premier Shares 30.79% 29.06% 20.11% 19.08%
* Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than the
original cost.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Core Equity Fund, the Standard & Poor's 500 Stock
Index and Lipper Growth and Income Funds Index from April 1, 1993 to June 30,
1998. The performance of the Fund assumes the reinvestment of all dividends
and capital gains and does not include a sales charge. The performance of the
indices does not include a sales charge and has been adjusted to reflect the
reinvestment of all dividends and capital gains on the securities included in
the benchmark. Premier Shares carry a $100,000 minimum initial investment and
carry no sales charge.
Chase Core Equity Fund is the successor to the AVESTA Trust Core Equity Fund.
Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to
Mutual Fund Investment ("MFIT"), a Massachusetts business trust. As part of
the conversion, the Fund transferred all of its assets to Chase Core Equity
Fund, a new investment portfolio of MFIT.
Chase Core Equity Fund, unlike the AVESTA Core Equity Fund, is subject to
certain diversification, distribution and other requirements imposed under the
Internal Revenue Code, which may impact performance.
The Lipper Growth and Income Funds Index represents performance of the largest
30 growth and income funds. Each of these funds combines a growth of earnings
orientation and an income requirement for level and/or rising dividends.
Lipper is an independent mutual fund performance monitor whose results are
based on total return and do not reflect a sales charge. An individual cannot
invest directly in an index.
The Standard and Poor's 500 Stock Index is an unmanaged broad-based index that
replicates the U.S. stock market. It includes 500 widely held common stocks.
Total return figures include the reinvestment of dividends. An individual
cannot invest directly in an index.
16
<PAGE>
Chase Core Equity Fund
as of June 30, 1998
How Much of the Fund Was Invested
[PIE CHART]
Investments 99.8%
Cash/Other 0.2%
What the Fund Invested In
Percentage of Total Portfolio Investments
[PIE CHART]
Capital Goods 4.0%
Basic Materials 2.2%
Cash Equivalent & Short Term Paper 2.2%
Utilities 7.4%
Transportation 3.0%
Technology 18.7%
Health Care 11.8%
Financial 17.2%
Energy 9.5%
Consumer Staples 6.6%
Consumer Cyclicals 17.4%
Top Ten Equity Holdings
1. Microsoft Corp. (4.4%) Develops, manufactures, licenses and supports
computer software products.
2. General Electric Corp. (3.7%) A diversified manufacturing, technology and
services company. Operations include appliance manufacturing, capital
services, information services, and electrical distribution.
3. American International Group (2.8%) Provides a variety of insurance and
financial services in the U.S. and internationally. The Company writes
property, casualty, marine, life, and financial services insurance.
4. Coca-Cola Co. (2.7%) Manufactures, markets, and distributes soft drink
concentrates and syrups, some finished beverages, and certain juice and
juice-drink products.
5. Travelers, Inc. (2.6%) Provides group and individual life insurance,
annuities, and accident, health and workers compensation insurance.
Travelers also offers pension, investment management and consumer banking
services.
6. Federal National Mortgage Assoc. (2.2%) Buys and holds mortgages, and
issues and sells guaranteed mortgage-backed securities to facilitate
housing ownership for low to middle income Americans.
7. Wal-Mart Stores, Inc. (2.2%) The Company's "Wal-Mart" discount stores and
"Supercenters" offer merchandise such as apparel, housewares, small
appliances, electronics, hardware, and other products.
8. Dayton-Hudson Corp. (2.1%) A general merchandise retailer that specializes
in large-store formats, including discount stores, moderate-priced
promotional and traditional department stores.
9. MBIA, Inc. (2.1%) Insures municipal bonds issued by governmental units to
finance public services. MBIA guarantees structured asset-backed and
mortgage-backed transactions, selected corporate bonds, and offers
investment management products and services to the public.
10. Merck & Co. (2.0%) A worldwide health products company that specializes in
human health, managed pharmaceutical care, manufacturing, research, and
vaccine. Merck's products include treatment for osteoporosis and high
blood pressure.
Top 10 equity holdings comprised 26.8% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
17
<PAGE>
Chase Core Equity Fund
Portfolio of Investments June 30, 1998 (unaudited)
Shares Issuer Value
- ------------------------------------------------------------------------------
Long-Term Investments -- 97.8%
- ------------------------------------------------------------------------------
Common Stock -- 97.8%
Aerospace -- 0.4%
6,600 Boeing Co. $ 294,112
----------
Airlines -- 3.0%
16,600 AMR Corp.* 1,381,950
24,500 Southwest Airlines Co. 725,812
----------
2,107,762
----------
Automotive -- 1.6%
13,000 Ford Motor Co. 767,000
4,900 General Motors Corp. 327,381
----------
1,094,381
----------
Banking -- 3.1%
5,400 BankAmerica Corp. 466,762
3,400 Citicorp 507,450
8,900 NationsBank Corp. 680,850
16,500 Norwest Corp. 616,687
----------
2,271,749
----------
Chemicals -- 2.2%
7,400 DuPont (EI) deNemours 552,225
18,050 Monsanto Co. 1,008,544
----------
1,560,769
----------
Computer Software -- 6.8%
10,600 BMC Software, Inc.* 550,537
8,550 Cisco Systems, Inc.* 787,134
6,850 Computer Associates International 380,603
28,500 Microsoft Corp.* 3,088,687
----------
4,806,961
----------
Computers / Computer Hardware -- 4.0%
16,000 Compaq Computer Corp. 454,000
4,750 Dell Computer Corp.* 440,859
8,600 EMC Corp.* 385,387
8,100 Hewlett-Packard Co. 484,987
8,900 International Business Machines Corp. 1,021,831
----------
2,787,064
----------
Consumer Products -- 5.3%
7,700 Colgate-Palmolive Co. 677,600
15,000 Gillette Co. 850,313
14,900 Philip Morris Companies, Inc. 586,688
13,500 Procter & Gamble Co. 1,229,344
8,100 Service Corp. International 347,288
----------
3,691,233
----------
See notes to financial statements.
18
<PAGE>
Chase Core Equity Fund
Portfolio of Investments June 30, 1998 (unaudited) (continued)
Shares Issuer Value
- ------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------------------
Diversified -- 2.0%
31,100 Dover Corp. $1,065,175
5,900 Tyco International Ltd. 371,700
----------
1,436,875
----------
Electronics / Electrical Equipment -- 7.9%
16,300 Emerson Electric Co. 984,113
28,500 General Electric Co. 2,593,500
13,700 Intel Corp. 1,015,513
11,376 Lucent Technologies, Inc. 946,341
----------
5,539,467
----------
Financial Services -- 8.6%
11,800 American Express Co. 1,345,200
3,392 Associates First Capital Corp. 260,760
11,550 Charles Schwab Corp. 375,375
25,900 Federal National Mortgage Assoc. 1,573,425
19,300 MBIA, Inc. 1,445,088
21,837 SLM Holding Corp. 1,070,013
----------
6,069,861
----------
Food / Beverage Products -- 6.6%
22,100 Coca-Cola Co. 1,889,550
19,700 Coca-Cola Enterprises, Inc. 773,225
11,200 Heinz (H.J.) Co. 628,600
13,200 PepsiCo., Inc. 543,675
8,500 Pioneer Hi-Bred International 351,688
5,900 Unilever NV, ADR (Netherlands) 465,731
----------
4,652,469
----------
Health Care / Health Care Services -- 0.6%
5,550 Guidant Corp. 395,784
----------
Insurance -- 5.5%
13,700 American International Group 2,000,200
30,250 Travelers, Inc. 1,833,906
----------
3,834,106
----------
Manufacturing -- 1.1%
11,400 Illinois Tool Works, Inc. 760,238
----------
Multi-Media -- 0.8%
5,200 The Walt Disney Co. 546,325
----------
Office / Business Equipment -- 0.5%
3,400 Xerox Corp. 345,525
----------
See notes to financial statements.
19
<PAGE>
Chase Core Equity Fund
Portfolio of Investments June 30, 1998 (unaudited) (continued)
Shares Issuer Value
- ------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------------------
Oil & Gas -- 9.5%
13,090 British Petroleum PLC, ADR (United Kingdom) $1,155,193
7,900 Chevron Corp. 656,194
6,700 Enron Corp. 362,219
19,300 Exxon Corp. 1,376,331
14,600 Mobil Corp. 1,118,725
18,000 Royal Dutch Petroleum Co., New York
Registered Shares (Netherlands) 986,625
4,526 Schlumberger, Ltd. 309,182
21,200 Williams Companies, Inc. 715,500
----------
6,679,969
----------
Pharmaceuticals -- 11.2%
13,600 Abbot Laboratories 555,900
11,800 American Home Products Corp. 610,650
8,800 Bristol-Myers Squibb Co. 1,011,450
9,200 Eli Lilly & Co. 607,775
9,900 Johnson & Johnson 730,125
10,700 Merck & Company, Inc. 1,431,125
12,800 Pfizer, Inc. 1,391,200
11,900 Schering-Plough Corp. 1,090,338
6,300 Warner-Lambert Co. 437,063
----------
7,865,626
----------
Printing & Publishing -- 1.3%
11,400 New York Times Company, Class A 903,450
----------
Retailing -- 8.4%
7,150 Albertson's, Inc. 370,459
30,600 Dayton-Hudson Corp. 1,484,100
15,600 Federated Department Stores* 839,475
10,650 Home Depot, Inc. 884,616
18,400 Walgreen Co. 760,150
25,600 Wal-Mart Stores, Inc. 1,555,200
----------
5,894,000
----------
Telecommunications -- 5.8%
15,950 AT&T Corp. 911,144
10,100 BellSouth Corp. 677,963
12,200 GTE Corp. 678,625
27,700 SBC Communications, Inc. 1,108,000
15,050 WorldCom, Inc.* 728,984
----------
4,104,716
----------
Utilities -- 1.6%
39,800 NIPSCO Industries Inc. 1,114,400
----------
Total Common Stock
(Cost $44,318,682) 68,756,842
----------
Total Long-Term Investments
(Cost $44,318,682) 68,756,842
- ------------------------------------------------------------------------------
See notes to financial statements.
20
<PAGE>
Chase Core Equity Fund
Portfolio of Investments June 30, 1998 (unaudited) (continued)
Shares Issuer Value
- ------------------------------------------------------------------------------
Short-Term Investments -- 2.2%
- ------------------------------------------------------------------------------
Money Market Fund -- 2.0%
1,427,089 Fidelity Colchester Street Trust Government Fund
(Cost $1,427,089) $1,427,089
-----------
Principal
Amount
(USD)
Repurchase Agreement -- 0.2%
-----------
$126,000 Merrill Lynch & Co., Inc., 5.50% due 07/01/98
(Dated 06/30/98, Proceeds $126,019,
Secured by U.S. Treasury Note $124,054, 7.75%
due 11/30/99; Market $128,467)
(Cost $126,000) 126,000
-----------
Total Short-Term Investments
(Cost $1,553,089) 1,553,089
- ------------------------------------------------------------------------------
Total Investments -- 100.1%
(Cost $45,871,771) $70,309,931
- ------------------------------------------------------------------------------
See notes to financial statements.
21
<PAGE>
Chase Equity Growth Fund
as of June 30, 1998
How the Fund Performed
Chase Equity Growth had a total return of 22.26% for the six-month period
ended June 30, 1998.
How the Fund Was Managed
Superior stock selection and prudent sector allocation decisions were largely
attributable to the Fund's investment results during the period.
The Fund's ongoing emphasis on health care, technology and consumer-oriented
stocks proved beneficial to shareholders. In health care, the Fund enjoyed
good performance from Pfizer. The company benefited from the introduction of a
new product for impotency as well as the strength within the sector.
A number of consumer-oriented stocks rallied thanks in large part to strength
in the economy and growing consumer confidence. Top performers for the Fund
included Wal-Mart, Bed, Bath and Beyond, Home Depot (whose share price split
during the period) and Jones Apparel.
Early in 1998, technology stocks came under pressure due to investor concerns
over the impact the Asian economic crisis would have on future earnings for
high-tech companies. But those fears faded later in the period, and many
technology stocks wound up recording strong gains. The Fund enjoyed good
performance from several stocks in this sector. Another factor that
contributed to the Fund's performance was its ability to avoid stocks that
substantially underperformed the market during the period.
Where the Fund May Be Headed
Our outlook remains favorable for the types of stocks represented in the Fund.
While many of these securities have enjoyed a good run-up in performance, a
number of them are still selling at attractive valuations and their earnings
growth prospects are favorable. However, given the lofty level of the stock
market and the uncertainty surrounding it due to the problems in Asia, stock
selection will be critically important.
22
<PAGE>
Chase Equity Growth Fund
as of June 30, 1998
Fund Facts
Objective Capital appreciation
Primary Investments Growth-oriented company stocks
such as common stock, preferred
stock and convertibles
Suggested investment time frame Long-term
Market benchmark S&P Barra Growth Total
Return Index
Lipper Funds Universe Growth Funds Index
Inception date 3/29/88
Newspaper symbol Eq Gro
Dividend Frequency Quarterly
Net Assets $125.6 million
Investment Style/Market Cap
----------------
| | |////| Large
| | |////|
----------------
| | | | Med
| | | |
---------------
| | | | Small
| | | |
----------------
Value Blend Growth
23
<PAGE>
Chase Equity Growth Fund
as of June 30, 1998
10-Year Performance*
This chart shows what the long-term growth would have been of a hypothetical
investment in the Chase Equity Growth Fund compared to its key benchmarks.
This is where you can see the Fund's long-term trend. This chart is for
illustrative purposes only.
Chase S&P Barra Lipper Growth
Equity Growth Growth Funds
Date Fund Index Index
- --------- -------- --------- ---------
6/30/1988 $ 10000 $ 10000 $ 10000
10000 10081 10077
10000 10111.1 10016.5
10000 10610.7 10595.5
10000 10541.8 10438.7
9848.55 10144.3 10103.6
10282.3 10604.9 10491.6
10345.8 10854.1 10596.5
10081.2 10653.3 10386.7
10458 10903.5 10658.8
11203.1 11686.5 11364.4
11176.1 11374.4 11216.7
11492.2 11611.1 11494.9
12026.5 12240.3 12111
12505.6 12765.4 12643.9
12511.7 12672.2 12470.6
12901.2 14051 13346.1
13178.9 14264.6 13666.4
13218.6 14300.1 13700.6
12788.4 14085.7 13271.7
13002.1 14525.2 13456.2
13149 14872.3 13586.7
11916.2 13761.4 12675.1
12374.5 13841.2 12886.7
13044.6 14393.4 13224.4
12648.1 14160.3 12876.6
14290.5 15763.1 14101.1
14577.5 15815.2 14115.2
14291.3 15715.7 13869.6
12850.6 14266.6 12593.6
12314.1 13530.5 11793.9
12230.3 13619.7 11568.7
12759.3 14442.4 12416.6
12958 14901.6 12850
13790.1 15521.6 13713.5
14822.5 16724.5 14725.6
15513.2 17356.8 15079
14994.9 17323.8 15115.2
15431.2 17978.5 15775.7
14701.4 17227.2 14848.1
15342.1 18148.8 15765.7
15789.1 18733.1 16218.2
15572.3 18322.8 16096.5
15870.2 18546.5 16362.1
15144.9 18073.4 15674.9
17064.4 20620 17518.3
16770.5 19896.3 17492
17032.7 20013.7 17803.4
16653.6 19549.2 17242.6
16569.1 19756.6 17216.7
16750 19910.7 17400.9
16145.8 19498.6 16903.3
16760.5 20378 17459.4
16536.2 20143.6 17068.3
16734 20381.3 17332.8
16928 20687 17641.4
17731.1 21522.8 18551.7
18161.8 21664.8 18855.9
18226.7 21430.9 19125.5
17838.2 21257.3 18875
18291.5 21557 19416.7
17606.2 20562.6 18890.5
18178.2 21294.6 19640.5
18172.4 21113.6 19701.4
17837.6 20678.7 19677.7
18468.1 21433.4 20516
18372.8 21105.5 20647.3
18448.7 21890.6 20988
18147.1 21875.3 20561.9
18611.5 22028.4 21113
19056.8 22500.3 21843.5
18851.3 22097.5 21485.3
17984.6 21077.3 20481.9
17914.7 21172.1 20645.8
18065.3 21517.2 20744.8
17773 21058.9 20033.3
18261 21730.7 20600.2
18910.5 22891.8 21477.8
18587.1 22564.4 21016
18904.2 23090.2 21417.5
18309.3 22332.8 20601.4
18444.2 22718.3 20780.7
18623.8 23281.7 20857.6
19213.8 24189.7 21629.3
19724.7 24949.2 22284.7
19938.5 25598.4 22915.3
20434.3 26514.1 23609.7
21367.3 27528.2 24669.7
22344.5 28406.1 25861.3
22363.6 28313.8 26132.8
22718.1 29713.3 26909
22589.2 29950.4 26551.1
23135.8 31029.3 27448.5
23199.5 31381.1 27563.8
23848.1 32578.3 28230.8
24355.5 32876.1 28674
24466.1 32738.7 28806
25257 33375.4 29529
25952.7 34602.3 30051.6
25557.6 35033.5 29757.1
24001.5 33418.4 28147.3
24715.5 33913 28997.3
26057.1 36266.9 30618.3
26486.4 37052.8 31059.2
28265 39822.1 33022.1
27960.1 38901.8 32394.7
30459.2 41949 34082.5
30558.4 42299.7 33820
28884.4 40291.3 32271.1
31238 43544.5 33691
33250 46124.9 36022.4
34700 48463 37369.7
37760 52299.8 40467.6
35310 48820.3 38974.3
37570 51308.7 41203.7
36180 49764.8 39872.8
37790 52465 40789.9
38360 53112.4 41479.2
39250 54897 41757.1
41700 58711.2 44701
43309 61748.4 46614.2
44049.2 62265.8 47113
43549.1 61016.8 45954
6/30/1998 46899.8 65367.3 47939.2
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the stock markets, tends to
be more volatile than the long-term trend.
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Premier Shares 35.16% 29.93% 20.87% 16.09%
* Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than the
original cost.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Equity Growth Fund, the Standard & Poor's Barra Growth
Total Return Index and Lipper Growth Funds Index from June 30, 1988 to June
30, 1998. The performance of the Fund assumes the reinvestment of all
dividends and capital gains and does not include a sales charge. The
performance of the indices does not include a sales charge and has been
adjusted to reflect the reinvestment of all dividends and capital gains on the
securities included in the benchmark. Premier Shares carry a $100,000 minimum
initial investment and carry no sales charge.
Chase Equity Growth Fund is the successor to the AVESTA Trust Equity Growth
Fund. Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to
Mutual Fund Investment ("MFIT"), a Massachusetts business trust. As part of
the conversion, the Fund transferred all of its assets to Chase Equity Growth
Fund, a new investment portfolio of MFIT. Chase Equity Growth Fund, unlike the
AVESTA Equity Growth Fund, is subject to certain diversification, distribution
and other requirements imposed under the Internal Revenue Code, which may
impact performance.
The Lipper Growth Funds Index represents performance of the largest 30 growth
funds. Each of these funds invests in companies whose long-term earnings are
expected to grow significantly faster than the earnings of the stocks
represented in the major unmanaged stock indices. Lipper is an independent
mutual fund performance monitor whose results are based on total return and do
not reflect a sales charge. An individual cannot invest directly in an index.
The Standard and Poor's Barra Growth Total Return Index is an unmanaged
broad-based index that replicates the U.S. stock market. It includes 500
widely held common stocks. Total return figures include the reinvestment of
dividends. An individual cannot invest directly in an index.
24
<PAGE>
Chase Equity Growth Fund
as of June 30, 1998
How Much of the Fund Was Invested
[PIE CHART]
Investments 99.9%
Cash/Other 0.1%
What the Fund Invested In
Percentage of Total Portfolio Investments
[PIE CHART]
Capital Goods 2.1%
Basick Materials 1.7%
Cash Equivalent & Short Term Paper 3.7%
Utilities 5.3%
Technology 23.8%
Health Care 19.4%
Financial 9.0%
Energy 2.9%
Consumer Staples 7.9%
Consumer Cyclicals 24.2%
Top Ten Equity Holdings
1. Microsoft Corp. (5.4%) Develops, manufactures, licenses and supports
computer software products.
2. General Electric Corp. (4.9%) A diversified manufacturing, technology and
services company. Operations include appliance manufacturing, capital
services, information services, and electrical distribution.
3. Coca-Cola Co. (4.4%) Manufactures, markets, and distributes soft drink
concentrates and syrups, some finished beverages, and certain juice and
juice-drink products.
4. Merck & Co. (3.4%) A worldwide health products company that specializes in
human health, managed pharmaceutical care, manufacturing, research, and
vaccine. Merck's products include treatment for osteoporosis and high
blood pressure.
5. Wal-Mart Stores, Inc. (2.8%) The Company's "Wal-Mart" discount stores and
"Supercenters" offer merchandise such as apparel, housewares, small
appliances, electronics, hardware, and other products.
6. Pfizer, Inc. (2.8%) A research based, global health care company
specializing in health care, animal health, and consumer health care. The
Company's products include bone and joint devices, anti-inflammatory
medicines, and personal care products.
7. Lucent Technologies, Inc. (2.7%) Designs, develops, manufactures, and
distributes communications systems, software, and products worldwide.
8. Procter & Gamble Co. (2.4%) Manufactures and markets consumer products for
laundry and cleaning, paper, beauty care, food, beverages and health care.
9. American Express Co. (2.3%) Provides travel related, financial advisory,
and international banking services throughout the world.
10. Bristol-Myers Squibb Co. (2.2%) A diversified worldwide health and
personal care company that manufactures and markets pharmaceuticals,
consumer medicines, beauty care products, nutritionals, and medical
devices.
Top 10 equity holdings comprised 33.3% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
25
<PAGE>
Chase Equity Growth Fund
Portfolio of Investments June 30, 1998 (unaudited)
Shares Issuer Value
- ------------------------------------------------------------------------------
Long-Term Investments -- 96.3%
- ------------------------------------------------------------------------------
Common Stock -- 96.3%
Banking -- 0.8%
7,000 Citicorp $1,044,750
-----------
Biotechnology -- 1.0%
19,700 Amgen, Inc.* 1,287,887
-----------
Chemicals -- 1.7%
28,200 DuPont (EI) deNemours 2,104,425
-----------
Computer Software -- 11.0%
28,800 BMC Software, Inc. * 1,495,800
23,450 Cisco Systems, Inc. * 2,158,866
16,000 Computer Associates International 889,000
62,600 Microsoft Corp. * 6,784,275
41,600 Platinum Technology, Inc. * 1,188,200
102 Siebel Systems, Inc. * 3,289
26,000 Sterling Commerce, Inc.* 1,261,000
-----------
13,780,430
-----------
Computers / Computer Hardware -- 3.3%
21,300 Compaq Computer Corp. 604,388
17,000 Dell Computer Corp. * 1,577,813
30,700 EMC Corp.* 1,375,744
9,600 Hewlett-Packard Co. 574,800
-----------
4,132,745
-----------
Consumer Products -- 10.2%
13,650 Colgate-Palmolive Co. 1,201,200
38,500 Gillette Co. 2,182,469
52,800 Jones Apparel Group, Inc.* 1,930,500
54,600 Philip Morris Companies, Inc. 2,149,875
33,000 Procter & Gamble Co. 3,005,063
14,800 Ralston Purina Group 1,728,825
12,900 Service Corp. International 553,088
-----------
12,751,020
-----------
Diversified -- 1.2%
24,600 Tyco International Ltd. 1,549,800
-----------
Electronics / Electrical Equipment -- 9.5%
67,700 General Electric Co. 6,160,700
32,150 Intel Corp. 2,383,119
40,548 Lucent Technologies, Inc. 3,373,087
-----------
11,916,906
-----------
Financial Services -- 6.1%
25,500 American Express Co. 2,907,000
35,600 Charles Schwab Corp. 1,157,000
36,900 Federal National Mortgage Assoc. 2,241,675
14,800 Morgan Stanley, Dean Witter, Discover and Co. 1,352,350
-----------
7,658,025
-----------
See notes to financial statements.
26
<PAGE>
Chase Equity Growth Fund
Portfolio of Investments June 30, 1998 (unaudited) (continued)
Shares Issuer Value
- ------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------------------
Food / Beverage Products -- 7.9%
65,100 Coca-Cola Co. $5,566,050
33,850 Coca-Cola Enterprises, Inc. 1,328,613
44,450 PepsiCo., Inc. 1,830,784
15,000 Unilever NV, ADR (Netherlands) 1,184,063
-----------
9,909,510
-----------
Health Care / Health Care Services -- 1.1%
9,150 Guidant Corp. 652,509
10,750 Medtronic, Inc. 685,312
-----------
1,337,821
-----------
Insurance -- 2.1%
18,250 American International Group 2,664,500
-----------
Manufacturing -- 0.9%
17,700 Illinois Tool Works, Inc. 1,180,369
-----------
Multi-Media -- 1.4%
24,300 Gannett Co., Inc. 1,726,819
-----------
Oil & Gas -- 2.9%
17,400 Camco International, Inc. 1,355,025
20,500 Exxon Corp. 1,461,906
12,900 Schlumberger, Ltd. 881,231
-----------
3,698,162
-----------
Pharmaceuticals -- 17.3%
35,400 Abbot Laboratories 1,446,975
28,000 American Home Products Corp. 1,449,000
24,200 Bristol-Myers Squibb Co. 2,781,488
29,900 Eli Lilly & Co. 1,975,269
32,600 Johnson & Johnson 2,404,250
32,200 Merck & Company, Inc. 4,306,750
31,800 Pfizer, Inc. 3,456,262
20,200 Schering-Plough Corp. 1,850,825
30,300 Warner-Lambert Co. 2,102,062
-----------
21,772,881
-----------
Photographic Equipment -- 1.0%
16,750 Eastman Kodak Co. 1,223,797
-----------
See notes to financial statements.
27
<PAGE>
Chase Equity Growth Fund
Portfolio of Investments June 30, 1998 (unaudited) (continued)
Shares Issuer Value
- ------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------------------
Retailing -- 11.6%
31,900 Bed Bath & Beyond, Inc. * $1,652,819
43,500 Dayton-Hudson Corp. 2,109,750
11,400 Federated Department Stores * 613,462
35,150 Gap, Inc. 2,166,119
19,000 Home Depot, Inc. 1,578,187
55,100 Kroger Co.* 2,362,412
33,500 OfficeMax, Inc., * 552,750
58,400 Wal-Mart Stores, Inc. 3,547,800
-----------
14,583,299
-----------
Telecommunications -- 5.3%
17,500 AT&T Corp. 999,687
23,100 GTE Corp. 1,284,937
37,100 SBC Communications, Inc. 1,484,000
38,850 Scientific-Atlanta, Inc. 985,819
38,900 WorldCom, Inc. * 1,884,219
-----------
6,638,662
-----------
Total Common Stock
(Cost $73,472,534) 120,961,808
- ------------------------------------------------------------------------------
Warrants -- 0%
Utilities -- 0%
81 York Research Corporation expires 09/30/98
(Cost $0) 0
-----------
Total Long-Term Investments
(Cost $73,472,534) 120,961,808
- ------------------------------------------------------------------------------
See notes to financial statements.
28
<PAGE>
Chase Equity Growth Fund
Portfolio of Investments June 30, 1998 (unaudited) (continued)
Shares Issuer Value
- ------------------------------------------------------------------------------
Short-Term Investments -- 3.7%
- ------------------------------------------------------------------------------
Money Market Fund -- 1.6%
1,985,000 Fidelity Colchester Street Trust Government Fund
(Cost $1,985,000) $ 1,985,000
-----------
Principal
Amount
(USD)
Repurchase Agreement -- 2.1%
$2,650,000 Merrill Lynch & Co., Inc., 5.50% due 07/01/98,
(Dated 06/30/98, Proceeds $2,650,405, Secured
by U.S. Treasury Note $2,609,062, 7.75% due
11/30/99; Market $2,701,869)
(Cost $2,650,000) 2,650,000
-----------
Total Short-Term Investments
(Cost $4,635,000) 4,635,000
- ------------------------------------------------------------------------------
Total Investments -- 100.0%
(Cost $78,107,534) $125,596,808
- ------------------------------------------------------------------------------
See notes to financial statements.
29
Chase Equity Income Fund
as of June 30, 1998
How the Fund Performed
Chase Equity Income Fund had a total return of 15.47% for the six-month period
ended June 30, 1998.
How the Fund Was Managed
A healthy economic climate, strong inflows into mutual funds from individual
investors and overweighted positions in top performing industry groups
contributed significantly to the Fund's performance. The Fund enjoyed good
performance from high-quality growth stocks across a wide range of different
sectors. Specifically, a number of our holdings in the financial services
sector performed well due to the wave of merger and acquisition activity in the
industry, improving corporate earnings and falling interest rates. Two
standouts include American International Group and American Express. Another
group that contributed favorably to the Fund's performance was health care,
which recorded strong investment results during the final four months of the
period. Bristol Myers and Pfizer were two of our better performers in this
sector. The Fund also enjoyed solid performance from its exposure to quality
technology companies, most notably Microsoft and IBM. After coming under
pressure early in the year due to the Asian economic crisis, technology
rebounded strongly later in the period to post impressive gains. Dow Chemical
and Lucent Technologies were among the Fund's better performing stocks.
Where the Fund May Be Headed
With interest rates low and inflation still under control, the current economic
backdrop for equities remains favorable. However, with the market hovering near
record levels and the problems in Asia again posing a threat to global economic
growth, stocks may be vulnerable to a correction in the months ahead. We expect
to maintain our strategy of focusing on companies that, in our opinion, are
conservatively managed and financially sound.
30
<PAGE>
Chase Equity Income Fund
as of June 30, 1998
Fund Facts
Objective Capital appreciation and current income
Primary Investments Income-oriented company stocks
including common stock, preferred stock
and convertible securities
Suggested investment time frame Long-term
Market benchmark S&P 500 Index
Lipper Funds Universe Equity Income Funds Index
Inception date 3/29/88
Newspaper symbol EqInc
Dividend Frequency Quarterly
Net Assets (as of June 30, 1998) $102.3 million
Investment Style/Market Cap
----------------
| |////| | Large
| |////| |
----------------
| | | | Med
| | | |
---------------
| | | | Small
| | | |
----------------
Value Blend Growth
31
<PAGE>
Chase Equity Income Fund
as of June 30, 1998
10-Year Performance*
This chart shows what the long-term growth would have been of a hypothetical
investment in the Chase Equity Income Fund compared to its key benchmarks. This
is where you can see the Fund's long-term trend. This chart is for illustrative
purposes only.
Chase Lipper Equity
Equity Income Funds S&P 500
Date Income Fund Index Index
- --------- --------- --------- ---------
6/30/1988 $ 10000 $ 10000 $ 10000
10000 10093 10110.6
10000 10174.8 10198.1
10000 10574.6 10666
10000 10561.9 10625.6
10602.1 10401.4 10264.9
10860.8 10694.7 10702.2
10752.5 10879.7 11000.2
10923 10772 10843.4
11450.5 10875.4 11032.6
11281.8 11402.9 11840.6
11559.4 11287.7 11545.5
12122 11528.1 11814.8
12607 11955.8 12428.3
12436.6 12375.5 12931.1
13409.7 12410.1 12857.8
13769.8 13151 14018.7
13693.3 13328.6 14292.8
13333.3 13339.2 14234.8
13110.9 13019.1 13904.2
13380.4 13190.9 14187.7
12565.2 13338.7 14528.5
12564.7 12706.4 13553
12888.4 12827.1 13727.6
12563.8 12950.3 14091.4
13426.1 12591.5 13739.8
13265.6 13337 15079.5
13294.4 13293 14977.8
12119.9 13215.9 14929.8
11815.9 12354.2 13580.3
11980.8 11867.4 12919.4
12620.4 11752.3 12864.3
12791.9 12384.6 13695.9
13089.6 12657.1 14077.4
13714.7 13087.4 14690.5
13942.9 13853 15741.1
14043 14103.8 16122.3
14534.8 14189.8 16160.4
14022.7 14693.5 16857.6
14553.8 14198.4 16085.3
14833.7 14736.5 16835
14803.6 15066.6 17233.9
15039 15080.1 16945.5
14453 15315.4 17173.2
15618.4 14855.9 16481.3
15093.4 16035.5 18366.2
15370.1 15984.2 18024.1
15131.3 16190.4 18257.5
15564.9 15975 17902.4
15606.4 16392 18428
15377.8 16559.2 18518.3
15867.5 16418.4 18242.7
15408.2 16973.3 18987.9
15684.3 16761.2 18599.2
15722 16893.6 18817.8
16285.3 16856.4 18882.7
16494.8 17264.4 19525.7
16654.8 17597.6 19765.2
17008.8 17882.6 19930.5
17578.8 18245.7 20202.1
17178.1 18805.8 20628.4
17178.5 18653.5 20129.8
17446.8 18938.9 20668.3
17849 19143.4 20728.8
18068.5 19298.5 20645.5
18807.3 19950.8 21428.8
18688.7 19966.7 21264.5
18835 20212.3 21704.4
18136.6 19856.6 21497.6
18529.7 20214 21757.5
19206 20844.7 22497.2
18544.5 20327.7 21886.7
17827.7 19514.6 20932.4
17843.3 19770.3 21200.8
17944 19995.6 21548.7
17701.8 19701.7 21020.5
18229.1 20257.3 21710.8
18565.7 20931.9 22601
17958.1 20536.2 22048.4
18384.5 20647.1 22543.8
17599.8 19874.9 21722.7
17904.9 20028 22044.9
18275.6 20386.5 22616.5
18882.4 21042.9 23497.9
19404.4 21539.5 24191.3
20007.1 22056.5 24903.7
20611.5 22733.6 25899.1
20873.6 23036 26500.8
21757 23667.2 27379.5
21853.9 23958.3 27448.3
22771.5 24703.4 28606.6
22446.7 24352.6 28504.5
23273.3 25377.8 29755.8
23942 26004.7 30328.9
24489.6 26600.2 31361.3
24626.1 26794.3 31652
25071.2 27132 31956.8
25231.1 27381.6 32427.9
25655.4 27786.8 33264.2
25757.7 27828.5 33390.9
24711.4 26918.5 31915.7
25239.6 27526.9 32588.8
26427.8 28539.8 34422.9
27075.8 29213.4 35372.3
28695.5 30881.5 38046.1
28219.4 30683.8 37292.4
29994 31806.9 39622.4
30064.6 32245.8 39933.1
28990.5 31201 38292.2
30765.8 32130.8 40578.2
32330.3 33981.6 43048.7
33930.8 35266.1 44977.2
36491.6 37389.1 48556.1
34400.9 36192.6 45836
35991.4 38027.6 48346.4
34961.1 36913.4 46731.6
36301.6 38138.9 48894.8
36981.8 39019.9 49734.6
37311.9 39004.3 50284.6
39612.6 41110.5 53911.1
41369.2 42972.8 56671.9
42080.5 42951.4 57242
41248.9 42423.1 56258.1
6/30/1998 42702.7 42766.7 58559
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the stock markets, tends to
be more volatile than the long-term trend.
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Premier Shares 25.85% 26.92% 19.05% 15.19%
* Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than the
original cost.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Equity Income, the Standard & Poor's 500 Stock Index
and the Lipper Equity Income Funds Index from June 30, 1988 to June 30, 1998.
The performance of the Fund assumes the reinvestment of all dividends and
capital gains and does not include a sales charge. The performance of the
indices does not include a sales charge and has been adjusted to reflect the
reinvestment of all dividends and capital gains on the securities included in
the benchmark. Premier Shares carry a $100,000 minimum initial investment and
carry no sales charge.
Chase Equity Income Fund is the successor to the AVESTA Trust Equity Growth
Fund. Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to
Mutual Fund Investment ("MFIT"), a Massachusetts business trust. As part of the
conversion, the Fund transferred all of its assets to Chase Equity Income Fund,
a new investment portfolio of MFIT. Chase Equity Income Fund, unlike the AVESTA
Equity Income Fund, is subject to certain diversification, distribution and
other requirements imposed under the Internal Revenue Code, which may impact
performance.
The Lipper Equity Income Funds Index represents performance of the
largest 30 Equity Income Funds. Each of these funds combines a growth of
earnings orientation and an income requirement for level and/or rising
dividends. Lipper is an independent mutual fund performance monitor whose
results are based on total return and do not reflect a sales charge. An
individual cannot invest directly in an index.
The Standard and Poor's 500 Stock Index is an unmanaged broad-based index that
replicates the U.S. stock market. It includes 500 widely held common stocks.
Total return figures include the reinvestment of dividends. An individual
cannot invest directly in an index.
32
<PAGE>
Chase Equity Income Fund
as of June 30, 1998
How Much of the Fund Was Invested
[PIE CHART]
Investments 99.8%
Cash/Other 0.2%
What the Fund Invested In
Percentage of Total Portfolio Investments
[PIE CHART]
Capital Goods 9.5%
Basic Materials 2.9%
Other 9.0%
REIT's 2.7%
Utilities 3.1%
Transportation 2.3%
Technology 16.3%
Health Care 12.1%
Financial 14.4%
Energy 5.4%
Consumer Staples 4.3%
Consumer Cyclicals 18.0%
Top Ten Equity Holdings
1. Bristol-Myers Squibb Co. (2.9%) A diversified worldwide health and
personal care company that manufactures and markets pharmaceuticals,
consumer medicines, beauty care products, nutritionals, and medical
devices.
2. International Business Machines Corp. (2.7%) Manufactures micro and
personal computers. The Company also supplies mainframe computers and
other information processing equipment, software and networking products
and peripheral equipment.
3. General Electric Corp. (2.7%) A diversified manufacturing, technology and
services company. Operations include appliance manufacturing, capital
services, information services, and electrical distribution.
4. American International Group (2.6%) Provides a variety of insurance and
financial services in the U.S. and internationally. The Company writes
property, casualty, marine, life, and financial services insurance.
5. Pfizer, Inc. (2.6%) A research based, global health care company
specializing in health care, animal health, and consumer health care. The
Company's products include bone and joint devices, anti-inflammatory
medicines, and personal care products.
6. American Express Co. (2.6%) Provides travel related, financial advisory,
and international banking services throughout the world.
7. Travelers, Inc. (2.5%) Provides group and individual life insurance,
annuities, and accident, health and workers compensation insurance.
Travelers also offers pension, investment management and consumer banking
services.
8. Procter & Gamble Co. (2.4%) Manufactures and markets consumer products for
laundry and cleaning, paper, beauty care, food, beverages and health care.
9. SunTrust Banks, Inc. (2.2%) A regional bank holding company. SunTrust
provides a wide range of personal, corporate, and institutional financial
services.
10. Xerox Corp. (2.0%) Develops, manufactures, markets, services and finances
document processing products and services. The Company also provides
network management, consulting, design, and integration services for
medium and large companies.
Top 10 equity holdings comprised 25.2% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
33
<PAGE>
Chase Equity Income Fund
Portfolio of Investments June 30, 1998 (unaudited)
Shares Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- 93.7%
- -------------------------------------------------------------------------------
Common Stock -- 93.7%
- -------------------------------------------------------------------------------
Aerospace -- 5.1%
8,700 Boeing Co. $ 387,694
14,300 Lockheed Martin Corp. 1,514,012
25,200 Raytheon Co., Class B 1,489,950
32,600 Sundstrand Corp. 1,866,350
----------
5,258,006
----------
Automotive -- 1.9%
18,700 Ford Motor Co. 1,103,300
12,100 General Motors Corp. 808,431
----------
1,911,731
----------
Banking -- 6.1%
24,900 Bank of New York Company, Inc. 1,511,119
6,600 Citicorp 985,050
25,400 First Union Corp. 1,479,550
27,200 SunTrust Banks, Inc. 2,211,70
----------
6,187,419
----------
Chemicals -- 4.5%
10,600 Dow Chemical Co. 1,024,887
22,700 DuPont (EI) deNemours 1,693,987
34,500 Monsanto Co. 1,927,687
----------
4,646,561
----------
Computer Software -- 1.7%
15,900 Microsoft Corp. * 1,723,162
----------
Computers / Computer Hardware -- 4.6%
14,000 Hewlett-Packard Co. 838,250
24,100 International Business Machines Corp. 2,766,981
19,300 Texas Instruments 1,125,431
----------
4,730,662
----------
Consumer Products -- 6.1%
19,400 Gillette Co. 1,099,737
37,290 Philip Morris Companies, Inc. 1,468,294
27,200 Procter & Gamble Co. 2,476,900
10,600 Ralston Purina Group 1,238,213
----------
6,283,144
----------
Diversified -- 1.3%
40,100 Dover Corp. 1,373,425
----------
Electronics / Electrical Equipment -- 6.7%
30,300 General Electric Co. 2,757,300
18,600 Intel Corp. 1,378,725
22,168 Lucent Technologies, Inc. 1,844,100
15,800 Motorola, Inc. 830,488
----------
6,810,613
----------
See notes to financial statements.
34
<PAGE>
Chase Equity Income Fund
Portfolio of Investments June 30, 1998 (unaudited) (continued)
Shares Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------------------------
Financial Services -- 2.6%
23,000 American Express Co. $2,622,000
----------
Food / Beverage Products -- 5.3%
19,500 Anheuser-Busch Companies, Inc. 920,156
22,900 Coca-Cola Co. 1,957,950
22,300 PepsiCo., Inc. 918,481
64,300 Sysco Corp. 1,647,688
----------
5,444,275
----------
Insurance -- 7.0%
18,030 American International Group 2,632,380
17,100 Transamerica Corp. 1,968,638
42,249 Travelers, Inc. 2,561,346
----------
7,162,364
----------
Multi-Media -- 0.5%
4,600 The Walt Disney Co. 483,288
----------
Office / Business Equipment -- 2.0%
20,200 Xerox Corp. 2,052,825
----------
Oil & Gas -- 7.7%
25,700 Amoco Corp. 1,069,763
19,600 Chevron Corp. 1,628,025
21,800 Mobil Corp. 1,670,425
31,872 Royal Dutch Petroleum Co., New York Registered
Shares (Netherlands) 1,746,984
5,800 Schlumberger, Ltd. 396,213
22,100 Texaco, Inc. 1,319,094
----------
7,830,504
----------
Paper / Forest Products -- 0.6%
15,200 International Paper Co. 653,600
----------
Pharmaceuticals -- 12.8%
31,800 Abbot Laboratories 1,299,825
28,900 American Home Products Corp. 1,495,575
26,000 Bristol-Myers Squibb Co. 2,988,375
30,700 Eli Lilly & Co. 2,028,119
14,000 Johnson & Johnson 1,032,500
11,800 Merck & Company, Inc. 1,578,250
24,200 Pfizer, Inc. 2,630,238
----------
13,052,882
----------
Retailing -- 3.9%
8,300 Home Depot, Inc. 689,419
15,300 J.C. Penny Company, Inc. 1,106,381
12,800 Sears Roebuck & Co. 781,600
23,000 Wal-Mart Stores, Inc. 1,397,250
----------
3,974,650
----------
See notes to financial statements.
35
<PAGE>
Chase Equity Income Fund
Portfolio of Investments June 30, 1998 (unaudited) (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- (concluded)
- --------------------------------------------------------------------------------
Shipping / Transportation -- 1.4%
29,100 Norfolk Southern Corp. $ 867,544
11,800 Union Pacific Corp. 520,675
----------
1,388,219
----------
Telecommunications -- 6.1%
23,900 Ameritech Corp. 1,072,512
21,000 AT&T Corp. 1,199,625
21,000 Bell Atlantic Corp. 958,125
14,900 BellSouth Corp. 1,000,162
17,400 GTE Corp. 967,875
25,100 SBC Communications, Inc. 1,004,000
----------
6,202,299
----------
Utilities -- 5.8%
38,400 DQE, Inc. 1,382,400
23,300 Duke Energy Corp. 1,380,525
19,600 Enron Corp. 1,059,625
53,100 NIPSCO Industries Inc. 1,486,800
17,000 Sonat, Inc. 656,625
----------
5,965,975
----------
Total Common Stock
(Cost $54,753,723) 95,757,604
----------
Total Long-Term Investments
(Cost $54,753,723) 95,757,604
----------
See notes to financial statements.
36
<PAGE>
Chase Equity Income Fund
Portfolio of Investments June 30, 1998 (unaudited) (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Short-Term Investments -- 6.4%
- --------------------------------------------------------------------------------
Money Market Fund -- 1.1%
1,156,000 Fidelity Colchester Street Trust Government Fund
(Cost $1,156,000) $1,156,000
----------
Principal
Amount
(USD)
Repurchase Agreements -- 5.3%
$1,003,000 Lehman Brothers Inc. 5.30%, due 07/01/98,
(Dated 06/30/98, Proceeds $1,003,148,
Secured by FNMA medium term note $1,002,136,
6.79% due 09/09/02; Market $1,025,848) 1,003,000
----------
4,400,000 Merrill Lynch & Co., Inc., 5.50% due 07/01/98,
(Dated 06/30/98, Proceeds $4,400,672, Secured
by U.S. Treasury Note $4,332,027, 7.75%
due 11/30/99; Market $4,486,122) 4,400,000
----------
Total Repurchase Agreements
(Cost $5,403,000) 5,403,000
Total Short-Term Investments
(Cost $6,559,000) 6,559,000
- ------------------------------------------------------------------------------
Total Investments -- 100.1%
(Cost $61,312,723) $102,316,604
- ------------------------------------------------------------------------------
See notes to financial statements.
37
<PAGE>
Chase Small Capitalization Fund
as of June 30, 1998
How the Fund Performed
Chase Small Capitalization Fund had a total return of 2.75% for the six-month
period ended June 30, 1998.
How the Fund Was Managed
The Fund's exposure to energy stocks detracted from performance, as stocks in
this sector came under pressure due to declining oil prices brought on partly
by last winter's warm weather. The Fund's performance was also hindered by its
modest underexposure to financial stocks. Stocks in this sector recorded
strong performance due to the wave of merger and acquisition activity in the
industry, improving corporate earnings and falling interest rates.
On a positive note, a number of stocks in the portfolio recorded strong
investment results. These included Metzler Group, a consulting firm that is
capitalizing on deregulation within the electric utilities industry; Visio
Software, a fast-growing high-tech company that is benefiting from new product
cycles, and Delta and PineLand, an agricultural biotech company that received
a buyout from Monsanto during the period.
Where the Fund May Be Headed
Our outlook for small companies is positive. Most small companies have little
or no exposure to the Asian economic crisis. Moreover, in our opinion, their
valuations are attractive on both a historical and absolute basis. We believe
that small stocks, as represented by the Russell 2000 Stock Index, have
superior earnings growth potential over the large-cap stocks that comprise the
Standard & Poor's 500 Composite Index.
Given the strong performance by small cap stocks in the latter part of the
reporting period, going forward, stock selection will be critically important
in identifying companies with superior earnings growth potential and
attractive relative value. As always, we will continue to focus on quality
companies that, in our opinion, have good earnings prospects regardless of the
economic or market environment.
38
<PAGE>
Chase Small Capitalization Fund
as of June 30, 1998
Fund Facts
Objective Capital appreciation
Primary Investments Common stocks of small companies
Suggested investment time frame Long-term
Market benchmark S&P 600 Index
Lipper Funds Universe Small Company Growth
Funds Index
Inception date 4/1/93
Newspaper symbol Sm Cap
Dividend Frequency Quarterly
Net Assets $55.9 million
Investment Style/Market Cap
----------------
| | | | Large
| | | |
----------------
| | | | Med
| | | |
---------------
|////| | | Small
|////| | |
----------------
Value Blend Growth
39
<PAGE>
Chase Small Capitalization Fund
as of June 30, 1998
Life of Fund Performance*
This chart shows what the long-term growth would have been of a hypothetical
investment in the Chase Small Capitalization Fund compared to its key
benchmarks. This is where you see the Fund's long-term trend. This graph is
for illustrative purposes only.
Chase Small Lipper Small
Capitalization Company Funds S&P 600
Date Fund Index Index
- -------- --------- --------- ---------
4/1/1993 $ 10000 $ 10000 $ 10000
9463.04 9678 9635.8
9859.35 10238.4 10153.4
10001.7 10310 10217.6
9967.6 10364.7 10323.4
10634.7 10879.8 10868.6
10885.7 11259.5 11263.2
10650 11485.8 11479
10276 11064.3 11068
10894.3 11562.2 11469.1
11001.7 11865.1 11739.6
10816.6 11815.3 11705.4
10178.9 11144.2 10864.8
10038.7 11203.2 11028.1
9727.43 10979.2 10810.2
9553.04 10541.1 10408.4
9959.8 10758.2 10537.9
10425.4 11471.5 11255.8
10511.1 11523.1 11197.8
10167.7 11715.6 11086
9828.96 11251.6 10662.6
10227.2 11505.9 10921.8
10250.5 11369 10767.6
10667.8 11836.3 11211.4
11025.3 12152.3 11438.2
11135.8 12321.2 11693.8
11029.4 12513.4 11876.2
11449.7 13276.7 12527.8
11867.6 14276.5 13485.6
12372.2 14527.8 13778
12498.8 14937.4 14129.8
12126 14475.9 13432.2
12401.1 14975.3 13963.7
13411.8 15144.5 14194.1
13487.6 15073.3 14224.9
14139 15679.3 14690.5
14815.2 15999.1 15005.4
15903.6 17275.9 15867
16587.6 17992.8 16430.9
15895.7 17267.7 15786.7
14597.6 15591 14700.6
15834.7 16535.8 15608.6
16729.8 17485 16293.2
16303.7 16949.9 16180.5
17008.3 17256.7 17020.9
17553.8 17318.8 17220.2
18122.2 17713.7 17506.6
17349.4 16698.7 17144.2
16694.6 15686.8 16264.2
16775 15556.6 16463.4
18510 17504.3 18397
19540 18355 19210.2
20680 19414 20417.9
21020 19635.4 20932
22730 21153.2 22316.3
21940 20087.1 21353.1
21680 19715.5 21197.7
21780 19918.5 21625.6
21050 19536.1 21203.9
22770 21112.7 23135.2
23830 22056.4 24018.7
24160 22149 24160.2
22870 20928.6 22881.2
6/30/1998 22380 21207 22947.5
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the stock markets, tends to
be more volatile than the long-term trend.
Since
Inception
1 Year 3 Years 5 Years 4/1/93
------ ------- ------- ---------
Premier Shares 14.53% 25.01% 17.47% 16.58%
* Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than the
original cost.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Small Capitalization Fund, the Standard & Poor's 600
Index and the Lipper Small Company Growth Funds Index from April 1, 1993 to
June 30, 1998. The performance of the Fund assumes the reinvestment of all
dividends and capital gains and does not include a sales charge. The
performance of the Index and the Average do not include a sales charge and
have been adjusted to reflect the reinvestment of all dividends and capital
gains on the securities included in the benchmark. Premier Shares carry a
$100,000 minimum initial investment and carry no sales charge.
The Chase Small Capitalization Fund is the successor to the AVESTA Trust Small
Capitalization Fund. Effective 12/31/97, the AVESTA Trust was converted from a
Texas Trust to Mutual Fund Investment ("MFIT"), a Massachusetts business
trust. As part of the conversion, the Fund transferred all of its assets to
the Chase Small Capitalization Fund, a new investment portfolio of MFIT.
The Chase Small Capitalization Fund, unlike the AVESTA Small Capitalization
Fund, is subject to certain diversification, distribution and other
requirements imposed under the Internal Revenue Code, which may impact
performance.
The Lipper Small Company Growth Funds Index represents the performance of the
largest small company funds. Lipper is an independent mutual fund performance
monitor whose results are based on total return and do not reflect a sales
charge.
The Standard & Poor's 600 Index is a broad-based index consisting of 600 small
capitalization companies. The index is unmanaged and reflects the reinvestment
of dividends. An individual cannot invest directly in an index.
Small Capitalization funds typically carry more risk than stock funds
investing in well-established blue chip companies since smaller companies
generally have a higher risk of failure. Historically smaller companies' stock
has experienced a greater degree of market volatility than the average stock.
40
<PAGE>
Chase Small Capitalization Fund
as of June 30, 1998
How Much of the Fund Was Invested
[PIE CHART]
Investments 99.6%
Cash/Other 0.4%
What the Fund Invested In
Percentage of Total Portfolio Investments
[PIE CHART]
Capital Goods 9.5%
Basic Materials 2.9%
Other 9.0%
REIT's 2.7%
Utilities 3.1%
Transportation 2.3%
Technology 16.3%
Health Care 12.1%
Financial 14.4%
Energy 5.4%
Consumer Staples 4.3%
Consumer Cyclicals 18.0%
Top Ten Equity Holdings
1. Comverse Technology, Inc. (2.5%) Designs, manufactures, markets, and
supports computer and telecommunications systems and software for
multimedia communications and information processing applications.
2. Visio Corp. (2.3%) Supplies enterprise wide business diagramming and
technical drawing software worldwide.
3. City National Corp. (2.2%) A holding company for City National Bank. It
provides revolving lines of credit, term loans, asset based loans,
deposit, cash management and other business services.
4. National Computer Systems, Inc. (2.0%) A global information services
company that designs, manufactures, markets and provides services for the
collection, management and interpretation of data.
5. Analysts International Corp. (1.9%) Provides a variety of computer
software services, including consulting, project management, systems
analysis and design, programming, year 2000 software compliance, software
maintenance and training.
6. AAR Corp. (1.9%) Purchases, sells and leases a variety of new, used and
overhauled aviation products, such as aircraft engines, avionics,
accessories, airframe and engine parts and components.
7. United Natural Foods, Inc. (1.9%) Distributes natural foods and related
products. The Company distributes groceries, general merchandise,
nutritional supplements, bulk and food service products, personal care
items, perishables, and frozen foods.
8. BJ's Wholesale Club, Inc. (1.7%) A merchandise wholesale club chain. The
company sells brand name food and general merchandise at discounted
prices.
9. Metzler Group, Inc. (1.7%) Provides consulting services to energy and
utility-related businesses such as electric, gas, and water utilities. The
Company offers a wide range of services, including management, information
technology, engineering and technical.
10. The BISYS Group, Inc. (1.7%) Designs, administers and distributes
proprietary mutual funds, and provides 401(k) marketing support,
administration and recordkeeping services.
Top 10 equity holdings comprised 19.8% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
41
<PAGE>
Chase Small Capitalization Fund
Portfolio of Investments June 30, 1998 (unaudited)
Shares Issuer Value
- ------------------------------------------------------------------------------
Long-Term Investments -- 92.1%
- ------------------------------------------------------------------------------
Common Stock -- 92.1%
Aerospace -- 2.0%
37,225 AAR Corp. $1,100,464
----------
Agricultural Production / Services -- 1.1%
13,294 Delta & Pine Land Company * 591,583
----------
Automotive -- 2.4%
26,800 Intermet Corporation 485,750
21,400 Lithia Motors, Inc. * 315,650
12,300 Tower Automotive, Inc. * 527,362
----------
1,328,762
----------
Banking -- 7.7%
14,200 Bank United Corp., Class A 679,825
33,400 City National Corp. 1,233,712
23,850 Dime Community Bancorp., Inc. 661,838
16,900 First Savings Bank of Washington Bancorp, Inc. 426,725
26,450 Klamath First Bancorp, Inc. 504,203
20,100 TR Financial Corp. 841,688
----------
4,347,991
----------
Business Services -- 4.4%
1,750 CDI Corp. * 46,813
17,500 Fair Issac & Company, Inc. 665,000
26,700 Metzler Group, Inc. * 977,888
37,500 Personnel Group of America, Inc. * 750,000
----------
2,439,701
----------
Chemicals -- 1.8%
23,200 Cambrex Corp. 609,000
18,100 Spartech Corporation 388,019
----------
997,019
----------
Computer Software -- 6.5%
38,850 Analysts International Corp. 1,102,369
12,800 JDA Software Group, Inc. * 560,000
27,900 Platinum Software Corporation * 680,063
26,850 Visio Corp. * 1,282,088
----------
3,624,520
----------
Computers / Computer Hardware -- 6.7%
18,450 Black Box Corp. * 612,309
31,400 CHS Electronics, Inc. * 561,275
27,450 Comverse Technology, Inc. * 1,423,969
47,000 National Computer Systems, Inc. 1,128,000
----------
3,725,553
----------
Construction -- 0.8%
27,700 Willbros Group, Inc. * 432,813
----------
See notes to financial statements.
42
<PAGE>
Chase Small Capitalization Fund
Portfolio of Investments June 30, 1998 (unaudited) (continued)
Shares Issuer Value
- ------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------------------
Construction Materials -- 2.3%
28,300 Encore Wire Corp.* $ 456,338
13,850 NCI Building Systems, Inc.* 799,838
----------
1,256,176
Diversified -- 0.8%
37,650 AMCOL International Corp. 454,153
----------
Electronics / Electrical Equipment -- 3.3%
30,300 Actel Corp. * 325,725
34,100 Artesyn Technologies, Inc. * 545,600
27,850 Integrated Process Equipment Corp. * 313,313
53,200 Lo-Jack Corp. * 661,675
----------
1,846,313
----------
Energy -- 0.2%
7,003 Offshore Logistics, Inc. * 124,303
----------
Engineering Services -- 1.0%
17,850 Jacobs Engineering Group, Inc. * 573,431
----------
Entertainment / Leisure -- 1.0%
29,500 Cinar Films, Inc., Class B * 575,250
----------
Financial Services -- 4.2%
8,400 Finova Group, Inc. 475,650
22,850 The BISYS Group, Inc. * 936,850
33,200 The Profit Recovery Group International, Inc. * 927,525
----------
2,340,025
----------
Food / Beverage Products -- 4.4%
9,650 Suiza Foods Corp. * 575,984
36,950 United Natural Foods, Inc. * 1,053,075
23,000 U.S. Foodservice, Inc. * 806,438
----------
2,435,497
----------
Health Care / Health Care Services -- 12.1%
35,550 ADAC Laboratories * 799,875
21,850 Alternative Living Services, Inc. * 589,950
33,100 Ballard Medical Products 595,800
8,950 Centocor, Inc. * 324,437
26,100 Concentra Managed Care, Inc. * 678,600
29,600 Hologic, Inc.* 538,350
22,150 IMPATH, Inc., * 538,522
27,600 MedQuist, Inc. * 796,950
6,500 Sofamor Danek Group, Inc. * 562,656
18,100 Superior Consultant Holdings Corp. * 780,563
25,200 Sybron International Corp.* 636,300
----------
6,842,003
----------
See notes to financial statements.
43
<PAGE>
Chase Small Capitalization Fund
Portfolio of Investments June 30, 1998 (unaudited) (continued)
Shares Issuer Value
- ------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------------------
Insurance -- 2.7%
16,512 Delphi Financial Group, Inc., Class A * $ 929,832
26,250 Vesta Insurance Group, Inc. 559,453
----------
1,489,285
----------
Machinery & Engineering Equipment -- 1.1%
43,728 ITEQ, Inc.* 325,227
18,300 PRI Automation, Inc. * 312,244
----------
637,471
----------
Manufacturing -- 1.6%
32,600 Gardner Denver Machinery Inc.* 900,575
----------
Oil & Gas -- 5.5%
20,450 Abraxas Petroleum Corp. * 186,606
15,600 Atwood Oceanics, Inc. * 621,075
49,700 Coho Energy, Inc.* 335,475
19,500 Lomak Petroleum, Inc. 203,531
32,878 Louis Dreyfus Natural Gas Corp.* 622,627
26,950 Plains Resources, Inc. * 483,416
36,100 Pride International, Inc. * 611,444
----------
3,064,174
----------
Real Estate Investment Trust -- 2.7%
26,700 Alexandria Real Estate Equities, Inc. 799,331
22,300 Weeks Corp. 705,237
----------
1,504,568
----------
Retailing -- 5.6%
8,800 Ames Department Stores, Inc. * 231,550
24,100 BJ's Wholesale Club, Inc.* 979,062
17,900 Eagle Hardware & Garden, Inc. * 413,937
17,850 Stage Stores, Inc. * 807,712
45,900 Stride Rite Corp. 691,369
----------
3,123,630
----------
Shipping / Transportation -- 2.3%
22,700 Dynamex Inc. * 275,238
22,850 MotivePower Industries, Inc. * 559,825
17,100 M.S. Carriers, Inc. * 463,837
----------
1,298,900
----------
Telecommunications -- 1.1%
27,600 STAR Communications, Inc. * 617,550
----------
Textile Mill Products -- 0.9%
13,350 St. John Knits, Inc. 515,644
----------
See notes to financial statements.
44
<PAGE>
Chase Small Capitalization Fund
Portfolio of Investments June 30, 1998 (unaudited) (continued)
Shares Issuer Value
- ------------------------------------------------------------------------------
Long-Term Investments -- (concluded)
- ------------------------------------------------------------------------------
Textiles -- 3.9%
28,650 Galey & Lord, Inc. * $ 426,168
23,850 Kellwood Co. 852,637
28,450 Mohawk Industries, Inc. * 901,509
----------
2,180,314
----------
Utilities -- 2.1%
11,950 Calenergy Co., Inc. * 359,247
1,800 California Water Service Group 45,225
11,850 Southern California Water Company * 321,431
15,450 UGI Corporation 384,319
1,600 Yankee Energy System, Inc. 39,400
----------
1,149,622
----------
Total Common Stock
(Cost $44,679,394) 51,517,290
----------
Total Long-Term Investments
(Cost $44,679,394) 51,517,290
- ------------------------------------------------------------------------------
Shares Issuer Value
- ------------------------------------------------------------------------------
Short-Term Investments -- 9.1%
- ------------------------------------------------------------------------------
Money Market Fund -- 4.3%
2,412,000 Fidelity Colchester Street Trust Government Fund
(Cost $2,412,000) 2,412,000
----------
Principal
Amount
(USD)
Repurchase Agreements -- 4.7%
$2,491,000 Merrill Lynch & Co., Inc., 5.50% due 07/01/98,
(Dated 06/30/98, Proceeds $2,491,381,
Secured by U.S. Treasury Note $2,452,518,
7.75% due 11/30/99; Market $2,539,757) 2,491,000
158,000 Lehman Brothers Inc. 5.30%, due 07/01/98,
(Dated 06/30/98, Proceeds $158,023, Secured
by FNMA medium term note $157,864,
6.79% due 09/09/02; Market $161,599) 158,000
----------
Total Repurchase Agreements
(Cost $2,649,000) 2,649,000
----------
Total Short-Term Investments
(Cost $5,061,000) 5,061,000
----------
Total Investments -- 101.1%
(Cost $49,740,394) $56,578,290
----------
* Non-income-producing securities.
See notes to financial statements.
45
<PAGE>
CHASE FUNDS
Statement of Assets and Liabilities As of June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Chase Chase Chase Chase Chase
Balanced Core Equity Equity Growth Equity Income Small Cap.
Fund Fund Fund Fund Fund
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment securities, at
value (Note 1) ........................ $ 46,226,092 $ 70,309,931 $ 125,596,808 $ 102,316,604 $ 56,578,290
Cash .................................... 875 513 931 -- 285
Receivables:
Investment securities sold ............ -- -- -- -- 182,239
Interest and dividends ................ 329,431 68,023 98,750 131,450 9,942
Fund shares sold ...................... 15,571 22,023 57,029 29,090 12,863
------------- ------------- ------------- ------------- -------------
Total Assets ......................... 46,571,969 70,400,490 125,753,518 102,477,144 56,783,619
------------- ------------- ------------- ------------- -------------
LIABILITIES:
Payable for investment securities
purchased ............................. -- -- -- -- 747,661
Payable for Fund shares redeemed ........ 21,312 23,819 8,553 7,279 757
Payable to custodian .................... -- -- -- 5,417 --
Dividends payable ....................... -- 489 120 2,070 --
Accrued liabilities: (Note 2)
Investment advisory fees .............. 18,902 33,113 63,768 53,285 22,400
Administration fees ................... 5,670 8,564 14,715 12,297 6,720
Custodian ............................. 9,287 12,832 12,761 14,542 13,410
Other ................................. 47,848 45,766 49,294 40,629 43,263
------------- ------------- ------------- ------------- -------------
Total Liabilities .................... 103,019 124,583 149,211 135,519 834,211
------------- ------------- ------------- ------------- -------------
NET ASSETS:
Paid in capital ......................... 35,757,529 43,842,048 73,976,442 60,795,381 45,949,425
Accumulated undistributed net
investment income (loss) .............. 647 2,656 1,887 (149) (36,812)
Accumulated undistributed net
realized gain on
investment transactions ............... 1,065,989 1,993,043 4,136,704 542,512 3,198,899
Net unrealized appreciation
of investments ........................ 9,644,785 24,438,160 47,489,274 41,003,881 6,837,896
------------- ------------- ------------- ------------- -------------
Net Assets .............................. $ 46,468,950 $ 70,275,907 $ 125,604,307 $ 102,341,625 $ 55,949,408
============= ============= ============= ============= =============
Shares of beneficial interest outstanding
($.001 par value; unlimited
number of shares authorized) .......... 1,417,910 2,814,882 2,678,998 2,406,766 2,500,246
Net asset value, maximum
offering price and redemption
price per share ....................... $ 32.77 $ 24.97 $ 46.88 $ 42.52 $ 22.38
Cost of Investments ..................... $ 36,581,307 $ 45,871,771 $ 78,107,534 $ 61,312,723 $ 49,740,394
------------- ------------- ------------- ------------- -------------
</TABLE>
See notes to financial statements.
46
<PAGE>
CHASE FUNDS
Statement of Operations For the six months ended June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Chase Chase Chase Chase Chase
Balanced Core Equity Equity Growth Equity Income Small Cap.
Fund Fund Fund Fund Fund
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend ............................ $ 95,795 $ 374,127 $ 435,247 $ 727,059 $ 104,947
Interest ............................ 665,598 73,100 133,749 117,475 106,824
Foreign taxes withheld .............. -- (5,356) -- (4,216) --
------------ ------------ ------------ ------------ ------------
Total investment income ........... 761,393 441,871 568,996 840,318 211,771
------------ ------------ ------------ ------------ ------------
EXPENSES: (Note 2)
Investment Advisory fees ............ 164,435 228,981 388,625 337,202 186,437
Administration fees ................. 32,887 45,796 77,725 67,440 37,287
Custodian fees ...................... 33,533 36,872 39,500 37,206 39,983
Printing and postage ................ 4,137 4,137 5,795 2,479 4,137
Professional fees ................... 11,288 12,149 14,277 13,592 11,581
Registration costs .................. 8,237 7,827 8,237 7,827 7,827
Transfer agent fees ................. 18,455 17,749 20,727 17,984 19,626
Trustees fees and expenses .......... 3,289 4,580 7,773 6,744 3,729
Other ............................... 13,967 12,296 11,529 7,768 8,274
------------ ------------ ------------ ------------ ------------
Total expenses .................... 290,228 370,387 574,188 498,242 318,881
------------ ------------ ------------ ------------ ------------
Less amounts waived (Note 2) ...... 70,983 65,079 56,022 48,639 70,298
------------ ------------ ------------ ------------ ------------
Net expenses ..................... 219,245 305,308 518,166 449,603 248,583
------------ ------------ ------------ ------------ ------------
Net investment income (loss) ... 542,148 136,563 50,830 390,715 (36,812)
------------ ------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain on investments .... 1,065,989 1,993,043 4,136,704 542,512 3,198,899
Change in net unrealized appreciation
on investments .................... 3,923,165 7,678,641 16,894,188 11,678,311 (2,204,862)
------------ ------------ ------------ ------------ ------------
Net realized and unrealized gain
on investments ................... 4,989,154 9,671,684 21,030,892 12,220,823 994,037
------------ ------------ ------------ ------------ ------------
Net increase in net assets
from operations .................. $ 5,531,302 $ 9,808,247 $ 21,081,722 $ 12,611,538 $ 957,225
============ ============ ============ ============ ============
</TABLE>
See notes to financial statements.
47
<PAGE>
Chase Funds
Statement of Changes in Net Assets For the periods indicated (unaudited)
<TABLE>
<CAPTION>
Chase Chase
Balanced Core Equity
Fund Fund
----------------------------------------------------------------
01/01/98 Year 01/01/98 Year
Through Ended Through Ended
06/30/98 12/31/97 06/30/98 12/31/97
----------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income .......................... $ 542,148 $ 701,584 $ 136,563 $ 279,116
Net realized gain on investments ............... 1,065,989 1,810,231 1,993,043 1,155,783
Change in net unrealized appreciation
on investments ............................... 3,923,165 2,792,495 7,678,641 8,866,879
----------------------------------------------------------------
Increase in net assets from operations ......... 5,531,302 5,304,310 9,808,247 10,301,778
----------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM: (Note 1)
Net investment income .......................... (541,501) -- (133,907) --
----------------------------------------------------------------
Increase (decrease) from capital share
transactions (Note 5) ........................ 5,120,512 8,423,105 9,204,065 12,512,147
----------------------------------------------------------------
Total increase in net assets ............... 10,110,313 13,727,415 18,878,405 22,813,925
NET ASSETS:
Beginning of period .......................... 36,358,637 22,631,222 51,397,502 28,583,577
----------------------------------------------------------------
End of period ................................ $ 46,468,950 $ 36,358,637 $ 70,275,907 $ 51,397,502
================================================================
</TABLE>
<TABLE>
<CAPTION>
Chase Chase
Equity Growth Equity Income
Fund Fund
-----------------------------------------------------------------
01/01/98 Year 01/01/98 Year
Through Ended Through Ended
06/30/98 12/31/97 06/30/98 12/31/97
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income .......................... $ 50,830 $ 142,490 $ 390,715 $ 826,469
Net realized gain on investments ............... 4,136,704 4,969,397 542,512 5,012,917
Change in net unrealized appreciation
on investments ............................... 16,894,188 16,308,101 11,678,311 12,446,787
-----------------------------------------------------------------
Increase in net assets from operations.......... 21,081,722 21,419,988 12,611,538 18,286,173
-----------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM: (Note 1)
Net investment income .......................... (48,943) -- (390,864) --
-----------------------------------------------------------------
Increase (decrease) from capital share
transactions (Note 5) ........................ 27,841,301 (2,017,883) 14,877,889 (6,433,575)
-----------------------------------------------------------------
Total increase in net assets ............... 48,874,080 19,402,105 27,098,563 11,852,598
NET ASSETS:
Beginning of period .......................... 76,730,227 57,328,122 75,243,062 63,390,464
-----------------------------------------------------------------
End of period ................................ $ 125,604,307 $ 76,730,227 $ 102,341,625 $ 75,243,062
=================================================================
</TABLE>
<TABLE>
<CAPTION>
Chase
Small Cap.
Fund
-------------------------------
01/01/98 Year
Through Ended
06/30/98 12/31/97
-------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income .......................... $ (36,812) $ 39,809
Net realized gain on investments ............... 3,198,899 2,445,973
Change in net unrealized appreciation
on investments ............................... (2,204,862) 4,450,108
-------------------------------
Increase in net assets from operations ......... 957,225 6,935,890
-------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM: (Note 1)
Net investment income .......................... -- --
-------------------------------
Increase (decrease) from capital share
transactions (Note 5) ........................ 14,963,871 12,342,213
-------------------------------
Total increase in net assets ............... 15,921,096 19,278,103
NET ASSETS:
Beginning of period .......................... 40,028,312 20,750,209
-------------------------------
End of period ................................ $ 55,949,408 $ 40,028,312
===============================
</TABLE>
See notes to financial statements.
48
<PAGE>
CHASE FUNDS
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies -- Mutual Fund Investment
Trust (the "Trust") was organized on September 23, 1997 as a Massachusetts
Business Trust, and is registered under the Investment Company Act of 1940, as
amended, (the "1940 Act") as an open-end management investment company. Chase
Balanced Fund ("CBF"), Chase Core Equity Fund ("CCEF"), Chase Equity Growth
Fund ("CEGF"), Chase Equity Income Fund ("CEIF"), and Chase Small
Capitalization Fund ("CSCF" or "Chase Small Cap. Fund") collectively, the
"Funds", are separate portfolios of the Trust.
The Funds were established on January 1, 1998 for the conversion of the AVESTA
Trust to the Chase Funds portfolios of the Mutual Fund Investment Trust. The
AVESTA Trust contributed securities and other assets and liabilities to a
corresponding portfolio, in exchange for shares of the corresponding portfolio
of the newly created Funds in a tax-free exchange.
The following is a summary of significant accounting policies followed by the
Funds:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates.
A. Valuation of investments -- Equity securities, purchased options and
futures are valued at the last sale price on the exchange on which they
are primarily traded, including the NASDAQ National Market. Securities for
which sale prices are not available and other over-the-counter securities
are valued at the last quoted bid price. Bonds and other fixed income
securities (other than short-term obligations), including listed issues,
are valued on the basis of valuations supplied by pricing services or by
matrix pricing systems of a major dealer in bonds. Short-term debt
securities with 61 days or more to maturity at time of purchase are
valued, through the 61st day prior to maturity at market value based on
quotations obtained from market makers or other appropriate sources;
thereafter, the value on the 61st day is amortized on a straight-line
basis over the remaining number of days to maturity. Short-term
investments with 60 days or less to maturity at time of purchase are
valued at amortized cost, which approximates market. Portfolio securities
for which there are no such quotations or valuations are valued at fair
value as determined in good faith by or at the direction of the Trustees.
B. Repurchase agreements -- It is the Trust's policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government Agency
securities. All collateral is held by the Trust's custodian bank,
subcustodian, or a bank with which the custodian bank has entered into a
subcustodian agreement, or is segregated in the Federal Reserve Book Entry
System. In connection with transactions in repurchase agreements, if the
seller defaults and the value of the collateral declines, or if the seller
enters an insolvency proceeding, realization of the collateral by the
Trust may be delayed or limited.
C. Futures contracts -- When a Fund enters into a futures contract, it
makes an initial margin deposit in a segregated account, either in cash or
liquid securities. Thereafter, the futures contract is marked to market
and the Fund makes (or receives) additional cash payments daily to (or
from) the broker. Changes in the value of the contract are recorded as
unrealized appreciation/depreciation until the contract is closed or
settled.
The Funds may invest in stock index futures contracts for the purpose of
hedging the Fund against share price volatility, which purpose may or may
not be achieved. When the Fund is not fully invested in the securities
market, it may enter into "long" positions in futures or
49
<PAGE>
CHASE FUNDS
Notes to Financial Statements (unaudited) (continued)
options contracts in order to gain rapid market exposure that may in part
or entirely offset increases in the cost of securities intended for
purchase. Use of long futures contracts subject the Fund to risk of loss
in excess of amounts shown on the Statement of Assets and Liabilities, up
to the amount of the value of the futures contracts.
The Fund may enter into futures contracts only on exchanges or boards of
trade. The exchange or board of trade acts as the counterparty to each
futures transaction, therefore, the Fund's credit risk is limited to
failure of the exchange or board of trade.
At June 30, 1998, the Funds had no open futures contracts.
D. Written options -- When a Fund writes an option on a futures contract,
an amount equal to the premium received by the Fund is included in the
Fund's Statement of Assets and Liabilities as an asset and corresponding
liability. The amount of the liability is adjusted daily to reflect the
current market value of the written options and the change is recorded in
a corresponding unrealized gain or loss account. When a written option
expires on its stipulated expiration date, or when a closing transaction
is entered into, the related liability is extinguished and the Fund
realizes a gain (or loss if the cost of the closing transaction exceeds
the premium received when the option was written).
The Funds may write options on stock index securities futures. These
options are settled for cash and subject the Fund to market risk in excess
of the amounts that are reflected in the Statement of Assets and
Liabilities. The Fund, however, is not subject to credit risk on written
options as the counterparty has already performed its obligation by paying
a premium at the inception of the contract.
At June 30, 1998, the Funds had no outstanding written options.
E. Security transactions and investment income -- Investment transactions
are accounted for on the trade date (the date the order to buy or sell is
executed). Securities gains and losses are calculated on the identified
cost basis. Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date.
F. Dollar Rolls -- CBF enters into dollar rolls in which the Fund sells
mortgage-backed securities for delivery in the current month and
simultaneously contracts to repurchase substantially similar (same type,
coupon and maturity) securities on a specified future date. During the
roll period, the Fund forgoes principal and interest paid on the
securities. The Fund is compensated by the interest earned on the cash
proceeds of the initial sale and a fee earned for entering into the roll
transaction. The fee is amortized into income over the duration of the
roll transaction.
G. Federal income taxes -- Each Fund is treated as a separate taxable
entity for Federal income tax purposes. The Trust's policy is to comply
with the provisions of the Internal Revenue Code applicable to regulated
investment companies and to distribute to shareholders all of its
distributable net investment income, and net realized gain on investments.
In addition, the Trust intends to make distributions as required to avoid
excise taxes. Accordingly, no provision for Federal income or excise tax
is necessary.
H. Distributions to shareholders -- Dividends and distributions paid to
shareholders are recorded on the ex-dividend date. The amount of dividends
and distributions from net investment income and net realized capital
gains is determined in accordance with Federal income tax regulations,
which may differ from generally accepted accounting principles. To the
extent these "book/tax" differences are permanent in nature (i.e., that
they result from other than timing of recognition -- "temporary
differences"), such amounts are reclassified within the capital accounts
based on their Federal tax-basis treatment.
50
<PAGE>
CHASE FUNDS
Notes to Financial Statements (unaudited) (continued)
I. Expenses -- Expenses directly attributable to a Fund are charged to
that Fund; other expenses are allocated proportionately among each Fund
within the Trust in relation to the net assets of each Fund or on another
reasonable basis.
2. Fees and Other Transactions with Affiliates
A. Investment advisory fee -- Pursuant to separate investment advisory
agreements, The Chase Manhattan Bank ("Chase" or the "Advisor"), acts as
the Investment Advisor to the Funds. Chase is a direct wholly-owned
subsidiary of The Chase Manhattan Corporation. As Investment Advisor,
Chase supervises the investments of the Funds and for such services is
paid a fee. The fee is computed daily and paid monthly at an annual rate
equal to 0.75% of each Fund's average daily net assets. The Advisor
voluntarily waived a portion of its fees in the amount of: $70,983,
$65,079, $56,022, $48,639 and $70,298 for CBF, CCEF, CEGF, CEIF and CSCF,
respectively, for the six month period ended June 30, 1998.
Chase Texas, a wholly-owned subsidiary of The Chase Manhattan Corporation,
is the Sub-Investment Advisor to each Fund. Pursuant to the Sub-Investment
Advisory Agreement between Chase Texas and Chase, Chase Texas is entitled
to receive a fee payable by Chase from its advisory fee, at an annual rate
equal to 0.375% of average daily net assets.
B. Sub-administration fees -- Pursuant to a Distribution and
Sub-Administration Agreement, Chase Fund Distributors, Inc. (the
"Distributor"), a wholly owned subsidiary of The BISYS Group, Inc., acts
as the Trust's exclusive underwriter and promotes and arranges for the
sale of each Fund's shares. In addition, the Distributor provides certain
sub-administration services to the Trust, including providing officers,
clerical staff and office space for an annual fee of 0.05% of the average
daily net assets of each Fund.
C. Administration fee -- Pursuant to an Administration Agreement, Chase
(the "Administrator") provides certain administration services to the
Trust. For these services and facilities, the Administrator receives from
the Funds a fee computed at the annual rate equal to 0.10% of the
respective Fund's average daily net assets.
D. Other -- Certain officers of the Trust are officers of Vista Fund
Distributors, Inc. or of its parent corporation, The BISYS Group, Inc.
Chase provides portfolio accounting and custody services for the Funds.
Compensation for such services are presented in the Statement of
Operations as custodian fees.
51
<PAGE>
CHASE FUNDS
Notes to Financial Statements (unaudited) (continued)
3. Investment Transactions -- For the six months ended June 30, 1998,
purchases and sales of investments (excluding short-term investments)
were as follows:
<TABLE>
<CAPTION>
Chase Chase Chase Chase Chase Small
Balanced Core Equity Equity Growth Equity Income Capitalization
Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Purchases (excluding
U.S. Government) .......... $ 6,157,231 $16,042,040 $38,698,679 $10,135,945 $24,113,718
Sales (excluding U.S. ......
Government) ............... 3,984,731 8,011,857 15,128,097 1,526,432 10,880,921
Purchases of U.S. Government 6,459,751 -- -- -- --
Sales of U.S. Government ... 4,598,672 -- -- -- --
</TABLE>
4. Transactions in Shares of Beneficial Interest -- Transactions in Shares
of Beneficial Interest were as follows for the periods presented.
<TABLE>
<CAPTION>
Chase Balanced Fund
01/01/98 Through 06/30/98 01/01/97 Through 12/31/97
----------------------------- -----------------------------
Amount Shares Amount Shares
------------ ------- ------------ -------
<S> <C> <C> <C> <C>
Shares sold ................. $ 14,891,386 490,046 $ 17,984,284 638,998
Shares issued in reinvestment
of distributions ........... 541,501 16,957 -- --
Shares redeemed ............. (10,312,375) (331,865) (9,561,179) (352,780)
------------ ------- ------------ -------
Net increase (decrease) in
Trust shares outstanding ... $ 5,120,512 175,138 $ 8,423,105 286,218
============ ======= ============ =======
</TABLE>
<TABLE>
<CAPTION>
Chase Core Equity Fund
01/01/98 Through 06/30/98 01/01/97 Through 12/31/97
----------------------------- -----------------------------
Amount Shares Amount Shares
------------ ------- ------------ ---------
<S> <C> <C> <C> <C>
Shares sold ................. $ 16,812,734 719,155 $ 21,816,166 1,107,322
Shares issued in reinvestment
of distributions ........... 133,376 5,442 -- --
Shares redeemed ............. (7,742,045) (327,973) (9,304,019) (482,551)
------------ ------- ------------ ---------
Net increase (decrease) in
Trust shares outstanding ... $ 9,204,065 396,624 $ 12,512,147 624,771
============ ======= ============ =========
</TABLE>
52
<PAGE>
CHASE FUNDS
Notes to Financial Statements (unaudited) (concluded)
<TABLE>
<CAPTION>
Chase Equity Growth Fund
01/01/98 Through 06/30/98 01/01/97 Through 12/31/97
----------------------------- -----------------------------
Amount Shares Amount Shares
------------ ------- ------------ -------
<S> <C> <C> <C> <C>
Shares sold ................. $ 34,972,523 847,650 $ 16,841,951 488,810
Shares issued in reinvestment
of distributions ........... 48,805 1,080 -- --
Shares redeemed ............. (7,180,027) (170,234) (18,859,834) (539,124)
------------ ------- ------------ -------
Net increase (decrease) in
Trust shares outstanding ... $ 27,841,301 678,496 ($ 2,017,883) (50,314)
============ ======= ============ =======
</TABLE>
<TABLE>
<CAPTION>
Chase Equity Income Fund
01/01/98 Through 06/30/98 01/01/97 Through 12/31/97
----------------------------- -----------------------------
Amount Shares Amount Shares
------------ ------- ------------ -------
<S> <C> <C> <C> <C>
Shares sold ................. $ 23,393,593 587,515 $ 18,819,863 564,632
Shares issued in reinvestment
of distributions ........... 388,667 9,245 -- --
Shares redeemed ............. (8,904,371) (225,404) (25,253,438) (776,284)
------------ ------- ------------ -------
Net increase (decrease) in
Trust shares outstanding ... $ 14,877,889 371,356 ($ 6,433,575) (211,652)
============ ======= ============ ========
</TABLE>
<TABLE>
<CAPTION>
Chase Small Capitalization Fund
01/01/98 Through 06/30/98 01/01/97 Through 12/31/97
----------------------------- -----------------------------
Amount Shares Amount Shares
------------ ------- ------------ ---------
<S> <C> <C> <C> <C>
Shares sold ................. $ 20,273,824 898,125 $ 19,285,660 1,005,821
Shares issued in reinvestment
of distributions ........... -- -- -- --
Shares redeemed ............. (5,309,953) (235,818) (6,943,447) (349,979)
------------ ------- ------------ ---------
Net increase (decrease) in
Trust shares outstanding ... $ 14,963,871 662,307 $ 12,342,213 655,842
============ ======= ============ =========
</TABLE>
53
<PAGE>
- -------------------
Chase Balanced Fund
- -------------------
Financial Highlights (unaudited)
<TABLE>
<CAPTION>
01/01/98 For the Years Ended December 31,
Through ---------------------------------------------------------------------
06/30/98 1997 1996 1995 1994 1993 +
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period .............. $ 29.26 $ 23.66 $ 21.25 $ 17.16 $ 17.56 $ 16.57
-------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .................... 0.382 0.740 0.630 0.570 0.460 0.470
Net Gains or Losses in Securities
(both realized and unrealized) .. 3.510 4.860 1.780 3.520 (0.860) 0.520
-------------------------------------------------------------------------------
Total from Investment Operations ......... 3.892 5.600 2.410 4.090 (0.400) 0.990
-------------------------------------------------------------------------------
Less Distributions:
Dividends from Net Investment Income ..... 0.382 -- -- -- -- --
-------------------------------------------------------------------------------
Net Asset Value, End of Period .................... $ 32.77 $ 29.26 $ 23.66 $ 21.25 $ 17.16 $ 17.56
===============================================================================
Total Return ...................................... 13.34% 23.67% 11.31% 23.83% (2.27%) 6.01%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ........... $ 46,469 $ 36,359 $ 22,631 $ 21,471 $ 22,802 $ 37,276
Ratios to average net assets:#
Ratio of Expenses ........................ 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Ratio of Net Investment Income ........... 2.47% 2.73% 2.82% 2.94% 2.69% 2.78%
Ratio of Expenses Without Waivers and
Assumption of Expenses .......... 1.32% 1.28% 1.17% 1.17% 1.17% 1.10%
Ratio of Net Investment Income Without Waivers
and Assumption of Expenses ...... 2.15% 2.45% 2.65% 2.77% 2.52% 2.68%
Portfolio Turnover Rate ........................... 21% 64% 70% 98% 157% 148%
</TABLE>
# Short periods have been annualized
+ Amounts have been adjusted to reflect 10:1 reverse split of the Fund's
units on May 7, 1993.
See notes to financial statements.
54
<PAGE>
- ----------------------
Chase Core Equity Fund
- ----------------------
Financial Highlights (unaudited)
<TABLE>
<CAPTION>
01/01/98 For the Years Ended December 31, 04/01/93*
Through ------------------------------------------------ Through
06/30/98 1997 1996 1995 1994 12/31/93
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period .............. $ 21.25 $ 15.94 $ 13.01 $ 10.36 $ 10.80 $ 10.00
-----------------------------------------------------------------------------
Income from Investment Operations:
Net investment income ............................ 0.050 0.140 0.160 0.170 0.180 0.140
Net Gains or Losses in Securities
(both realized and unrealized) ................. 3.719 5.170 2.770 2.480 (0.620) 0.660
-----------------------------------------------------------------------------
Total from Investment Operations ................. 3.769 5.310 2.930 2.650 (0.440) 0.800
-----------------------------------------------------------------------------
Less Distributions:
Dividends from Net Investment Income ............. 0.049 -- -- -- -- --
-----------------------------------------------------------------------------
Net Asset Value, End of Period .................... $ 24.97 $ 21.25 $ 15.94 $ 13.01 $ 10.36 $ 10.80
=============================================================================
Total Return ...................................... 17.74% 33.33% 22.54% 25.53% (4.03%) 7.95%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ........... $ 70,276 $ 51,398 $ 28,584 $ 24,367 $ 21,035 $ 11,718
Ratios to average net assets:#
Ratio of Expenses ................................ 1.00% 1.00% 1.00% 1.00% 1.00% 0.79%
Ratio of Net Investment Income ................... 0.45% 0.74% 1.10% 1.44% 1.68% 1.84%
Ratio of Expenses Without Waivers and
Assumption of Expenses ......................... 1.21% 1.20% 1.14% 1.17% 1.27% 2.74%
Ratio of Net Investment Income Without Waivers and
Assumption of Expenses ......................... 0.24% 0.54% 0.96% 1.27% 1.41% (0.11%)
Portfolio Turnover Rate ........................... 14% 24% 29% 133% 129% 83%
</TABLE>
* Commencement of operations.
# Short periods have been annualized
See notes to financial statements.
55
<PAGE>
- ------------------------
Chase Equity Growth Fund
- ------------------------
Financial Highlights (unaudited)
<TABLE>
<CAPTION>
01/01/98 For the Years Ended December 31,
Through ---------------------------------------------------------------------
06/30/98 1997 1996 1995 1994 1993+
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period .............. $ 38.36 $ 27.95 $ 23.20 $ 18.44 $ 18.61 $ 18.16
-------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .................... 0.020 0.0700 0.100 0.170 0.200 0.200
Net Gains or Losses in Securities
(both realized and unrealized) .. 8.519 10.340 4.650 4.590 (0.370) 0.250
-------------------------------------------------------------------------------
Total from Investment Operations ......... 8.539 10.410 4.750 4.760 (0.170) 0.450
-------------------------------------------------------------------------------
Less Distributions:
Dividends from Net Investment Income ..... 0.019 -- -- -- -- --
-------------------------------------------------------------------------------
Net Asset Value, End of Period .................... $ 46.88 $ 38.36 $ 27.95 $ 23.20 $ 18.44 $ 18.61
===============================================================================
Total Return ...................................... 22.26% 37.20% 20.52% 25.78% (0.90%) 2.48%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ........... $ 125,604 $ 73,730 $ 57,328 $ 45,578 $ 36,683 $ 30,648
Ratios to average net assets:#
Ratio of Expenses ........................ 1.00% 1.00% 1.00% 1.00% 1.00% 0.96%
Ratio of Net Investment Income ........... 0.10% 0.20% 0.41% 0.78% 1.07% 1.12%
Ratio of Expenses Without Waivers and
Assumption of Expenses .......... 1.11% 1.11% 1.08% 1.10% 1.17% 1.21%
Ratio of Net Investment Income Without
Waivers and Assumption of Expenses (0.01%) 0.09% 0.33% 0.68% 0.90% 0.87%
Portfolio Turnover Rate ........................... 15% 35% 62% 99% 116% 97%
</TABLE>
# Short periods have been annualized
+ Amounts have been adjusted to reflect 10:1 reverse split of the Fund's
units on May 7, 1993.
See notes to financial statements.
56
<PAGE>
- ------------------------
Chase Equity Income Fund
- ------------------------
Financial Highlights (unaudited)
<TABLE>
<CAPTION>
01/01/98 For the Years Ended December 31,
Through ----------------------------------------------------------------
06/30/98 1997 1996 1995 1994 1993+
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period .. $ 36.97 $ 28.21 $ 23.93 $ 17.90 $ 18.52 $ 16.49
------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income ................ 0.167 0.400 0.430 0.440 0.390 0.350
Net Gains or Losses in Securities
(both realized and unrealized) ..... 5.550 8.360 3.850 5.590 (1.010) 1.680
------------------------------------------------------------------------------
Total from Investment Operations ..... 5.717 8.760 4.280 6.030 (0.620) 2.030
------------------------------------------------------------------------------
Less Distributions:
Dividends from Net Investment Income . 0.167 -- -- -- -- --
------------------------------------------------------------------------------
Net Asset Value, End of Period ........ $ 42.52 $ 36.97 $ 28.21 $ 23.93 $ 17.90 $ 18.52
==============================================================================
Total Return .......................... 15.47% 31.50% 17.87% 33.72% (3.37%) 12.34%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) $ 102,342 $ 75,243 $ 63,390 $ 54,985 $ 39,296 $ 41,605
Ratios to average net assets:#
Ratio of Expenses .................... 1.00% 1.00% 1.00% 1.00% 1.00% 0.95%
Ratio of Net Investment Income ....... 0.87% 1.67% 1.67% 2.10% 2.13% 1.98%
Ratio of Expenses Without Waivers and
Assumption of Expenses ............. 1.11% 1.11% 1.07% 1.09% 1.12% 1.21%
Ratio of Net Investment Income Without
Waivers and Assumption of Expenses . 0.76% 1.56% 1.60% 2.01% 2.01% 1.72%
Portfolio Turnover Rate ............... 2% 14% 24% 11% 42% 40%
</TABLE>
# Short periods have been annualized
+ Amounts have been adjusted to reflect 10:1 reverse split of the Fund's
units on May 7, 1993.
See notes to financial statements.
57
<PAGE>
- -------------------------------
Chase Small Capitalization Fund
- -------------------------------
Financial Highlights (unaudited)
<TABLE>
<CAPTION>
01/01/98 For the Years Ended December 31, 04/01/93*
Through --------------------------------------------------- Through
06/30/98 1997 1996 1995 1994 12/31/93
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ............... $ 21.78 $ 17.55 $ 13.41 $ 10.23 $ 10.89 $ 10.00
-------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income ..................... (0.015) 0.020 0.010 0.050 0.060 0.020
Net Gains or Losses in Securities
(both realized and unrealized) ......... 0.615 4.210 4.130 3.130 (0.720) 0.870
-------------------------------------------------------------------------------
Total from Investment Operations .......... 0.600 4.230 4.140 3.180 (0.660) 0.890
-------------------------------------------------------------------------------
Less Distributions:
Dividends from Net Investment Income ............ 0.000 -- -- -- -- --
-------------------------------------------------------------------------------
Net Asset Value, End of Period ..................... $ 22.38 $ 21.78 $ 17.55 $ 13.41 $ 10.23 $ 10.89
===============================================================================
Total Return ....................................... 2.75% 24.08% 30.88% 31.14% (6.12%) 8.94%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ............ $ 55,949 $ 40,028 $ 20,750 $ 12,848 $ 9,267 $ 9,838
Ratios to average net assets:#
Ratio of Expenses ......................... 1.00% 1.00% 1.22% 1.35% 1.45% 2.13%
Ratio of Net Investment Income ............ (0.15%) 0.13% 0.04% 0.46% 0.55% 0.28%
Ratio of Expenses Without Waivers and
Assumption of Expenses ................. 1.28% 1.40% 1.37% 1.50% 1.60% 2.46%
Ratio of Net Investment Income Without
Waivers and Assumption of Expenses ..... (0.43%) (0.27%) (0.11%) 0.31% 0.40% (0.05%)
Portfolio Turnover Rate ............................ 23% 43% 68% 89% 120% 161%
</TABLE>
* Commencement of operations.
# Short periods have been annualized
See notes to financial statements.
58
<PAGE>
Chase Funds are distributed by CFD Fund Distributors, Inc. which is
unaffiliated with The Chase Manhattan Bank. Chase and its respective
affiliates receive compensation from Chase Funds for providing investment
advisory and other services.
This report is submitted for the general information of the shareholders of
the Funds. It is not authorized for distribution to prospective investors in
the Funds unless preceded or accompanied by a prospectus.
The financial information in this report has been taken from the books and
records of the Funds without examination by independent accountants, who
express no opinion thereto.
To obtain a prospectus for any of the Chase Funds, call 1-888-5-CHASE-0. The
prospectus contains more complete information, including charges and expenses.
Please read it carefully before you invest or send money.
- ---------------------------------------
| NOT May Lose Value |
| FDIC |
| INSURED No Bank Guarantee |
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Chase Funds(SM). Invest With Power.
Chase Funds Service Center
210 West 10th Street
Kansas City, MO 64105
Legal Counsel
Simpson Thacher & Bartlett
425 Lexington Avenue
New York, NY 10017
Independent Accountants
Price Waterhouse Coopers
1177 Avenue of the Americas
New York, NY 10036
(C) The Chase Manhattan Corporation, 1998. All Rights Reserved.
C-465-01604 August 1998 CF801-3-898
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Chase Funds Fulfillment Center
One Chase Manhattan Plaza, 3rd floor
New York, NY 10081
