<PAGE>
Chase Funds(Service Mark). Invest With Power.
Annual Report for:
Chase Balanced Fund
Chase Core Equity Fund
Chase Equity Growth Fund
Chase Equity Income Fund
Chase Small Capitalization Fund
December 31, 1998
[LOGO]
(Copyright) The Chase Manhattan Corporation, 1999. All Rights Reserved.
February 1999 (C-465-01616) CF803-3-299
<PAGE>
Table of Contents
Chairman's Letter 3
Chase Funds Risks/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 54-59
<PAGE>
Chase Equity Funds
Chairman's Letter
February 8, 1999
Dear Shareholder:
We are pleased to present this annual report for the following Chase Funds
for the one-year period ended December 31, 1998:
o Balanced Fund
o Core Equity Fund
o Equity Growth Fund
o Equity Income Fund
o Small Capitalization Fund
U.S. Financial Markets Register Strong Investment Results
Good economic conditions and rising corporate profits enabled the stock
market to advance to its fourth consecutive year of double-digit percentage
gains. Other factors that contributed to the market's performance included
high consumer confidence and healthy cash flows into equity mutual funds from
both domestic and foreign investors.
Bonds also registered solid performance, fueled largely by falling interest
rates and low inflation. Additionally, bond prices received a lift thanks to
growing fears over a slowing global economy. These concerns were triggered by
fiscal problems outside the U.S., most notably in southeast Asia and Russia.
In 1998, large-cap stocks continued to outperform their small-cap
counterparts. Growth stocks fared better than value stocks. A wide range of
industry groups participated in the market's advance, including stocks in the
technology, health care and financial sectors. Energy stocks underperformed
the broader market due to falling oil prices.
The market's strong showing was not without some pullbacks along the way.
The most notable downturn took place last summer when Russia's financial woes
came to the forefront, igniting a global liquidity crisis. This pullback,
however, proved to be another excellent buying opportunity for investors, as
the market rebounded strongly in the fall. The rally was spurred by the
Federal Reserve Board's decision to continue to cut short-term interest rates.
Previous to these moves, the Fed had not trimmed interest rates in nearly two
years.
Outlook
With consumer confidence high and inflation low, the economic environment
for the financial markets remains positive. Additionally, the corporate
earnings picture continues to be solid. We would not be surprised to see the
economy slow gradually later in the year due to uncertainties associated with
the new millennium. This backdrop would be favorable for bonds. While
investors are still likely to favor large-cap stocks during periods of
uncertainty, we believe the recent strong performance by secondary stocks is
encouraging for these securities.
Sincerely,
/s/ Sarah E. Jones
- -------------------------
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
- ---------------------------------------
R
I
S
K
& 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, you can make regular investments 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 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.
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.
* 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.
5
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Chase Balanced Fund
as of December 31, 1998
(unaudited)
How the Fund Performed
Chase Balanced Fund, which seeks to provide a balance of current income and
growth of capital by investing in equity-based securities as well as in U.S.
Government fixed income securities, had a total return of 25.15% (Premier
Shares) for the one-year period ended December 31, 1998.
How the Fund Was Managed
The Fund's investments results were mainly due to a prudent asset allocation
strategy and exposure to sectors that outperformed the broader market.
Early in the period, the Fund enjoyed good performance from both equities and
fixed-income securities. A generally favorable domestic economy helped propel
equity prices, while periodic concerns over global economic growth lifted bond
prices. Some of the Fund's better performing stocks during this period included
health care, technology and consumer-oriented securities.
During the sharp summer sell-off, the Fund's exposure to fixed-income securities
bolstered performance as long-term interest rates declined to historic lows in
the face of growing concerns over global economic uncertainty ignited by the
Russian financial crisis.
Following the Federal Reserve Board's decision to adopt an easing monetary
policy in late September, the Fund rallied during the final three months of the
year. The Fund's technology stocks proved particularly rewarding, as these
securities turned in strong gains. Other groups that contributed favorably to
performance included communication services, consumer staples and health care.
Where the Fund May Be Headed
While the economic problems outside the U.S. are likely to continue to have an
effect on U.S. financial markets, we continue to have a positive outlook for
equities and fixed-income securities. For one, the economy remains sound, with
inflation under control and interest rates low. Additionally, consumer
confidence is still high and unemployment continues to be low. Given this
backdrop, we intend to view market downturns as good long-term buying
opportunities. However, stock selection will remain critically important in
posting good relative investment results in the months ahead.
6
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Chase Balanced Fund
as of December 31, 1998
(unaudited)
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 Index
Lipper Funds Universe Balanced Funds Index
Inception date Premier Shares 3/29/88
Investor Shares 10/16/98
Newspaper symbol Balanced
Dividend Frequency Quarterly
Net Assets Premier Shares $59,014,000
Investor Shares $19,000
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 December 31, 1998
(unaudited)
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.
Year Fund Index Index Index
- --------- ---------- ---------- ---------- -----------
10000 10000 10000 10000
10000 10000 10000 10000
10501.4 10404 10709 10110.5
11352.9 11140.6 11654.2 10923
11731.3 11798.4 12902.4 11025.5
1989 11825.9 11969.7 13168.6 11423.4
11579.9 11689.2 12772.5 11292.7
12081.4 12228.9 13575.9 11699.4
11419.1 11239.9 11710.2 11770.3
1990 11986.8 12048.1 12759.8 12369.8
13405.9 13302.4 14613.3 12703.1
13036.9 13338 14579.8 12895.1
13580.5 14181.5 15359.4 13636.8
1991 14881.7 15159.8 16647.2 14364.5
14474.9 14981.2 16226.7 14148.9
14474.9 15221.1 16535.3 14722
15042.6 15700.8 17056.7 15441.3
1992 15676.4 16290.7 17915.6 15453.5
16083.2 17057.4 18698 16172
16215.7 17406.2 18789 16657.5
16546.8 18043.3 19274.5 17208.5
1993 16613.1 18237.8 19721.3 17158.2
16064.3 17681.4 18973.4 16621
15827.8 17547.2 19053.3 16414.3
16263 18060.7 19984.8 16495.5
1994 16234.6 17864.6 19981.7 16556.2
17228 18942.9 21927.3 17381.2
18505.2 20268.8 24020.4 18509
19375.6 21356.9 25929.4 18863.2
1995 20104.1 22310.6 27490.4 19742
20378.4 22810 28965.7 19280.2
20889.3 23272.8 30265.8 19370.8
21277.2 23886.2 31202.4 19712.6
1996 22384.1 25222.6 33802.2 20315.1
22724.7 25340.5 34708.3 20139.9
25477.8 28071.8 40770.6 20872.7
27095.6 29875.5 43821.3 21604.2
1997 27682.1 30342.2 45079.8 22297.4
29650.9 32742.5 51368.6 22635.3
31374.7 33240.3 53064.8 23227.5
30566.7 31316.5 47786 24377.9
1998 34654 34919.7 58027.1 24409.7
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the securities markets,
tends to be more volatile than the long-term trend.
1 Year 3 Years 5 Years 10 Years
Premier Shares 25.15% 19.86% 15.82% 13.22%
Investor Shares 25.04% 19.83% 15.80% 13.21%
* 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.
The Fund is currently waiving certain fees. The voluntary
waiver may be modified or terminated at any time, which would reduce
performance.
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 Index and the Lipper
Balanced Funds Index from December 31, 1988 to December 31, 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 $1 million minimum initial investment and
carry no sales charge. Investor Shares were introduced on 10/16/98 and have a
minimum initial investment of $2,500. Please note internal expenses are
greater for the Investor Shares class. Performance measurements for the
Investor Shares prior to 10/16/98 are based on the predecessor Premier Shares
class and do not include Investor Share class expenses.
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 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 December 31, 1998
(unaudited)
How Much of the Fund Was Invested
[PIE CHART]
Investments 99.2%
Cash/Other 0.8%
What the Fund Invested In
Percentage of Total Portfolio Investments
[PIE CHART]
Capital Goods 0.9%
Basic Materials 2.1%
Asset Backed Securities 0.9%
Transportation 0.4%
Cash Equivalent & Short Term Paper 5.7%
US Treasury Securities 30.2%
Mortgage Backed Securities 2.6%
Utilities 3.8%
Technology 17.3%
Health Care 12.9%
Financial 5.6%
Energy 0.5%
Consumer Staples 2.9%
Consumer Cyclicals 14.2%
Top Ten Equity Holdings
1. Microsoft Corp. (2.8%) Develops, manufactures, licenses and supports
computer software products.
2. General Electric (2.3%) A diversified manufacturing, technology and
services company. Operations include appliance manufacturing, capital
services, information services, and electrical distribution.
3. International Business Machines Corp. (1.7%) Manufactures micro and
personal computers. The Company also supplies mainframe computers and
other information processing equipment, software and networking
products and peripheral equipment.
4. Intel Corp. (1.7%) Manufactures micro and personal computers. The Company
also supplies mainframe computers and other information processing
equipment, software and networking products and peripheral equipment.
5. Wal-Mart Stores, Inc. (1.7%) The "Wal-Mart" Company's discount stores and
"Supercenters" offer merchandise such as apparel, housewares, small
appliances, electronics, hardware, and other products.
6. Lucent Technologies, Inc. (1.7%) Designs, develops, manufactures, and
distributes communications systems, software, and products worldwide.
7. Merck & Co., Inc. (1.6%) 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.
8. Pfizer, Inc. (1.4%) 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.
9. Kroger Co. (1.4%) Operates supermarkets and convenience stores and
processes food. The Company also operates food processing facilities which
supply private label products to the Company's supermarkets.
10. Coca-Cola Co. (1.4%) Manufactures, markets, and distributes soft drink
concentrates and syrups, some finished beverages, and certain juice and
juice-drink products.
Top 10 equity holdings comprised 17.7% 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 December 31, 1998
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- 93.7%
- --------------------------------------------------------------------------------
Common Stock -- 51.7%
---------------------
Airlines -- 0.4%
11,075 Southwest Airlines Co. $ 248,495
----------
Banking-- 0.2%
1,400 J.P. Morgan & Co., Inc. 147,087
----------
Biotechnology-- 1.7%
6,800 Amgen, Inc.* 711,025
3,550 Biogen, Inc.* 294,650
----------
1,005,675
----------
Chemicals -- 0.2%
2,250 E.I. Du Pont de Nemours & Co. 119,391
----------
Communications Equipment-- 1.6%
8,838 Lucent Technologies, Inc. 972,180
----------
Computer Networks-- 1.4%
7,125 Cisco Systems, Inc.* 661,289
5,150 Newbridge Networks Corp. (Canada)* 156,431
----------
817,720
----------
Computer Software -- 3.1%
1,750 Citrix Systems, Inc.* 169,859
11,950 Microsoft Corp.* 1,657,316
----------
1,827,175
----------
Computers / Computer Hardware -- 5.9%
14,900 Compaq Computer Corp. 624,869
8,500 Dell Computer Corp.* 622,094
9,050 EMC Corp.* 769,250
5,550 International Business Machines Corp. 1,025,362
4,700 Solectron Corp.* 436,806
----------
3,478,381
----------
Consumer Products -- 2.3%
3,900 Gillette Co. 188,419
12,450 Philip Morris Companies, Inc. 666,075
5,400 Procter & Gamble Co. 493,087
800 Select Comfort Corp.* 21,150
----------
1,368,731
----------
Diversified -- 0.7%
5,100 Tyco International Ltd. (Bermuda) 384,731
----------
Electronics / Electrical Equipment-- 3.5%
7,600 American Power Conversion Corp.*. 368,125
5,700 Applied Materials, Inc.* 243,319
12,950 General Electric Co. 1,321,709
2,350 Motorola,Inc. 143,497
----------
2,076,650
----------
See notes to financial statements.
10
<PAGE>
Chase Balanced Fund
Portfolio of Investments December 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments --(continued)
- --------------------------------------------------------------------------------
Entertainment / Leisure -- 1.1%
10,600 Time Warner, Inc. $ 657,862
----------
Financial Services-- 2.8%
10,650 Charles Schwab Corp. 598,397
7,500 Fannie Mae 555,000
4,650 Merrill Lynch &Co. 310,388
2,900 Morgan Stanley, Dean Witter, Discover and Co. 205,900
----------
1,669,685
----------
Food / Beverage Products -- 2.0%
2,250 Anheuser-Busch Companies, Inc 147,656
11,950 Coca-Cola Co. 799,156
5,300 PepsiCo, Inc. 216,969
----------
1,163,781
----------
Health Care / Health Care Services -- 0.9%
3,630 Genzyme Corp. (General Division)* 180,593
392 Genzyme Molecular Oncology* 1,274
1,850 Guidant Corp. 203,963
2,100 Medtronic, Inc. 155,925
----------
541,755
----------
Insurance -- 0.9%
5,550 American International Group 536,269
----------
Oil & Gas-- 0.5%
4,200 Exxon Corp. 307,125
----------
Pharmaceuticals-- 9.2%
7,300 Abbot Laboratories 357,700
8,450 American Home Products Corp. 475,841
4,900 Bristol-Myers Squibb Co. 655,681
6,650 Eli Lilly & Co. 591,019
6,600 Johnson & Johnson, Inc. 553,575
6,450 Merck & Co., Inc. 952,584
6,600 Pfizer, Inc. 827,887
10,000 Schering-Plough Corp. 552,500
6,100 Warner-Lambert Co. 458,644
----------
5,425,431
----------
Photographic Equipment -- 0.5%
4,400 Eastman Kodak Co. 316,800
----------
Restaurants / Food Services-- 0.3%
2,100 McDonald's Corp. 160,912
----------
Retailing-- 7.1%
11,150 Albertson's, Inc. 710,116
5,250 Bed Bath & Beyond, Inc.* 179,156
3,100 Best Buy Co., Inc.* 190,262
13,200 Gap, Inc. 742,500
See notes to financial statements.
11
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Chase Balanced Fund
Portfolio of Investments December 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments --(continued)
- --------------------------------------------------------------------------------
Retailing -- 7.1% (continued)
7,500 Home Depot, Inc. $ 458,906
13,500 Kroger Co.* 816,750
2,200 Tandy Corp. 90,612
12,000 Wal-Mart Stores, Inc. 977,250
----------
4,165,552
----------
Semi-Conductors -- 1.7%
8,300 Intel Corp. 984,069
----------
Telecommunications-- 3.7%
2,000 AirTouch Communications, Inc.* 144,250
5,950 Ameritech Corp. 377,081
4,050 AT&T Corp. 304,763
4,000 BellSouth Corp. 199,500
2,300 GTE Corp. 155,106
5,500 MCI WorldCom, Inc.* 394,625
7,600 SBC Communications, Inc. 407,550
2,300 Sprint Corp. (FON Group) 193,488
1,150 Sprint Corp. (PCS Group)* 26,594
----------
2,202,957
----------
Total Common Stock
(Cost $18,083,425) 30,578,414
----------
U.S. Treasury Securities-- 30.1%
--------------------------------
Principal
Amount U.S. Treasury Notes & Bonds,
$ 970,000 5.50%, 01/31/03 998,644
1,800,000 5.50%, 03/31/03 1,854,558
1,240,000 5.88%, 11/15/05 1,322,733
4,735,000 6.25%, 08/15/23 5,292,120
5,000,000 6.38%, 03/31/01 5,182,800
2,140,000 6.50%, 10/15/06 2,373,731
625,000 6.50%, 11/15/26 726,756
----------
Total U.S. Treasury Securities
(Cost $17,541,779) 17,751,342
----------
Corporate Notes & Bonds-- 8.4%
------------------------------
Automotive -- 0.4%
225,000 Ford Motor Credit Co., 6.25%, 12/08/05 232,405
----------
Banking-- 0.7%
400,000 BankAmerica Corp., 6.20%, 02/15/06 411,368
----------
Chemicals-- 1.9%
1,100,000 Monsanto Co., 5.88%, 12/01/08 1,089,836
----------
Consumer Products-- 0.6%
325,000 Procter & Gamble Co., 6.45%, 01/15/26 341,075
----------
Financial Services-- 0.8%
500,000 Associates Corp. of North America, 7.52%, 3/29/00 512,840
----------
See notes to financial statements.
12
<PAGE>
Chase Balanced Fund
Portfolio of Investments December 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------------------------------------------------------------------------------------------
Long-Term Investments --(continued)
- ----------------------------------------------------------------------------------------------
<S> <C>
Food / Beverage Products -- 0.9%
$ 500,000 Anheuser-Busch Companies, Inc., 6.75%, 08/01/03 $ 530,810
-----------
Health Care / Health Care Services -- 1.0%
600,000 Abbott Laboratories, 5.60%, 10/01/03 610,332
-----------
Machinery / Equipment -- 0.2%
100,000 Caterpillar Financial Services, 6.95%, 11/01/00 102,727
-----------
Restaurants -- 0.8%
450,000 McDonald's Corp., 7.05%, 11/15/25 486,603
-----------
Retailing -- 1.1%
600,000 Wal-Mart Stores, Inc., 6.75%, 05/15/02 630,168
-----------
Total Corporate Notes & Bonds
(Cost $4,691,865) 4,948,164
-----------
Residential Mortgage-Backed Pass Through Securities -- 2.6%
783,441 Federal National Mortgage
Association, Pool 406258, 6.50%, 01/01/28 788,581
732,296 Government National Mortgage
Association, Pool 416156, 6.50%, 02/15/26 739,846
-----------
Total Residential Mortgage-Backed Pass Through Securities
(Cost $1,500,341) 1,528,427
-----------
Asset Backed Securities -- 0.9%
80,052 Ford Credit Grantor Trust, Ser. 1995-B, Class A, 5.90%, 10/15/00 80,101
443,700 PNC Student Loan Trust I, Ser. 1997-2, Class A2, 6.14%, 1/25/00 451,048
-----------
Total Asset Backed Securities
(Cost $523,788) 531,149
- ----------------------------------------------------------------------------------------------
Total Long-Term Investments
(Cost $42,341,198) 55,337,496
- ----------------------------------------------------------------------------------------------
Short-Term Investments -- 5.7%
- ----------------------------------------------------------------------------------------------
Shares Money Market Fund -- 4.0%
2,350,800 Fidelity Colchester Street Trust Government Fund
(Cost $2,350,800) 2,350,800
-----------
Principal
Amount
Repurchase Agreement -- 1.7%
$ 983,000 Credit Suisse First Boston Finance (Secured by Federal National
Mortgage Association obligations), in a joint trading account at
5.10%, dated 12/31/98 due 01/04/99; Proceeds $983,557
(Cost $983,000) 983,000
- ----------------------------------------------------------------------------------------------
Total Short-Term Investments
(Cost $3,333,800) 3,333,800
- ----------------------------------------------------------------------------------------------
Total Investments -- 99.4%
(Cost $45,674,998) $58,671,296
- ----------------------------------------------------------------------------------------------
</TABLE>
Index:
* = Non-income producing security.
# = Security may only be sold to qualified institutional buyers.
ADR = American Depositary Receipt.
See notes to financial statements.
13
<PAGE>
Chase Core Equity Fund
as of December 31, 1998
(unaudited)
How the Fund Performed
Chase Core Equity Fund, which seeks to maximize total investment return through
emphasis on long-term capital appreciation and current income consistent with
reasonable risk, had a total return of 30.95% (Premier Shares) for the one-year
period ended December 31, 1998.
How the Fund Was Managed
The Fund's good performance was mainly due to outstanding stock selection and a
favorable environment for stocks throughout much of the year. The market was
bolstered by healthy economic conditions and the Federal Reserve Board's
decision to trim short-term interest rates late in 1998.
Early in the period, the Fund enjoyed solid investment results from several
stocks across a broad range of industries, including consumer cyclicals, health
care, technology and retailers. Midway through the year, these stocks came under
pressure due to global economic uncertainty brought on by the Russian financial
crisis. Fund management used the downturn to purchase stocks of attractive
companies selling at favorable prices, most notably in the hard hit technology
sector. This strategy proved highly beneficial to Fund shareholders later in the
year.
After the Federal Reserve Board adopted an easing monetary policy in late
September, the stock market rebounded strongly, as fears of a major global
economic slowdown waned, and investor interest in U.S. equities surged. In this
environment, stocks of large, well-established companies -- such as those
typically found in the Fund -- were among the market's better performers, with
those in the technology sector turning in some of the strongest gains. Solid
performance by consumer and financial stocks also contributed favorably to
performance during this period.
Where the Fund May Be Headed
Looking ahead, we remain optimistic about the prospects for large-capitalization
stocks and the sectors represented in the Fund. The economic environment remains
solid, with interest rates low and inflation still under control. Additionally,
the corporate earnings outlook continues to be good. While we expect the
domestic economy to slow later in 1999 and market volatility to continue due to
unresolved economic problems outside the U.S., we believe well-established
companies with good earnings growth prospects should perform well in the months
ahead. Given our concerns for the market, however, stock selection will play an
important role in generating good relative returns in the coming year.
14
<PAGE>
Chase Core Equity Fund
as of December 31, 1998
(unaudited)
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 Premier Shares 4/1/93
Investor Shares 9/10/98
Newspaper symbol CoreEq
Dividend Frequency Quarterly
Net Assets Premier Shares $88,536,000
Investor Shares $24,000
Investment Style/Market Cap
----------------
| |////| | Large
| |////| |
----------------
| | | | Med
| | | |
---------------
| | | | Small
| | | |
----------------
Value Blend Growth
15
<PAGE>
Chase Core Equity Fund
as of December 31, 1998
(unaudited)
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
Fund Index Index
--------- --------- ---------
$ 10000 $ 10000 $ 10000
10000 10128.4 10048.7
10546.3 10578.6 10308.3
10789.1 10821.5 10547.3
10190.9 10471.1 10147.3
10092.1 10525.6 10190
10546.3 10690.5 10688.2
10354.6 10776.6 10686.6
11029.5 11621.8 11727.1
11623.9 12575.9 12846.5
12486.1 13513 13867.5
12998.4 14132.4 14702.3
13743.3 14944 15491.4
14305 15328.5 16186.7
14553.6 15822.5 16687.6
15928.6 17054.2 18078
16317.3 17241.1 18562.6
19119.3 19773.8 21804.8
20658.4 21429 23436.4
21236.4 21637.7 24109.4
23772.2 24104.6 27472.8
25002.1 24150.9 28380
22614.7 21139.7 25566.8
27808.2 24576.1 31033.9
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 30.95% 28.83% 20.84% 19.46%
Investor Shares 30.80% 28.78% 20.81% 19.43%
* 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.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Core Equity Fund, the Standard & Poor's 500 Index and
Lipper Growth and Income Funds Index from April 1, 1993 to December 31, 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 $1 million minimum initial investment and
carry no sales charge.
Investor Shares were introduced on 9/10/98 and have a minimum initial investment
of $2,500. Please note internal expenses are greater for the Investor Shares
class. Performance measurements for the Investment Shares prior to 9/10/98 are
based on the predecessor Premium Shares class and do not include Investor Share
class expenses.
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 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 December 31, 1998
(unaudited)
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 2.4%
Basic Materials 2.2%
Cash Equivalent & Short Term Paper 5.6%
Utilities 8.9%
Transportation 1.0%
Technology 22.3%
Health Care 12.9%
Financial 15.3%
Energy 6.7%
Consumer Staples 4.2%
Consumer Cyclicals 18.5%
Top Ten Equity Holdings
1. Microsoft Corp. (4.9%) Develops, manufactures, licenses and supports
computer software products.
2. General Electric Co. (3.6%) A diversified manufacturing, technology and
services company. Operations include appliance manufacturing, capital
services, information services, and electrical distribution.
3. Wal-Mart Stores, Inc. (2.6%) The "Wal-Mart" Company's discount stores and
"Supercenters" offer merchandise such as apparel, housewares, small
appliances, electronics, hardware, and other products.
4. American International Group (2.4%) 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. Fannie Mae (2.4%) Buys and holds mortgages, and issues and sells guaranteed
mortgage-backed securities to facilitate housing ownership for low to
middle income Americans.
6. Charles Schwab Corp. (2.1%) Provides a variety of financial services to
individual investors, independent investment managers, retirement plans,
and institutions. The Company provides its services through multiple
service channels, including the Internet.
7. International Business Machines Corp. (2.0%) Manufactures micro and
personal computers. The Company also supplies mainframe computers and other
information processing equipment, software and networking products and
peripheral equipment.
8. Intel Corp. (2.0%) Manufactures micro and personal computers. The Company
also supplies mainframe computers and other information processing
equipment, software and networking products and peripheral equipment.
9. Pfizer, Inc. (2.0%) 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.
10. Merck & Co., Inc. (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.
Top 10 equity holdings comprised 25.9% 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 December 31, 1998
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- 96.6%
- --------------------------------------------------------------------------------
Common Stock -- 96.6%
---------------------
Airlines -- 1.1%
41,350 Southwest Airlines Co. $ 927,791
----------
Automotive -- 1.4%
14,600 Ford Motor Co. 856,838
5,600 General Motors Corp. 400,750
----------
1,257,588
----------
Banking -- 3.2%
24,150 Bank of New York Co., Inc. 972,037
14,673 BankAmerica Corp. 882,214
23,950 Wells Fargo Co. 956,503
----------
2,810,754
----------
Biotechnology -- 0.3%
2,450 Amgen, Inc.* 256,178
----------
Chemicals -- 1.6%
8,300 E. I. Du Pont de Nemours and Co. 440,419
20,350 Monsanto Co. 966,625
----------
1,407,044
----------
Communications Equipment -- 1.6%
12,876 Lucent Technologies, Inc. 1,416,360
----------
Computer Networks -- 1.5%
14,425 Cisco Systems, Inc. * 1,338,820
----------
Computer Software -- 5.6%
11,800 BMC Software, Inc. * 525,837
32,000 Microsoft Corp. * 4,438,000
----------
4,963,837
----------
Computers / Computer Hardware -- 7.1%
17,900 Compaq Computer Corp. 750,681
23,000 Dell Computer Corp. * 1,683,312
9,700 EMC Corp.* 824,500
9,200 Hewlett-Packard Co. 628,475
10,000 International Business Machines Corp. 1,847,500
5,950 Solectron Corp.* 552,978
----------
6,287,446
----------
See notes to financial statments.
18
<PAGE>
Chase Core Equity Fund
Portfolio of Investments December 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------------------------
Consumer Products -- 4.2%
3,650 Clorox Co. $ 426,366
8,600 Colgate-Palmolive Co. 798,725
7,300 Gillette Co. 352,681
21,300 Philip Morris Companies, Inc. 1,139,550
11,150 Procter & Gamble Co. 1,018,134
----------
3,735,456
----------
Diversified -- 1.4%
16,900 Tyco International LTD (Bermuda) 1,274,894
----------
Electronics / Electrical Equipment -- 5.0%
18,300 Emerson Electric Co. 1,144,894
32,000 General Electric Co. 3,266,000
----------
4,410,894
----------
Entertainment / Leisure -- 1.2%
17,600 Time Warner, Inc. 1,092,300
----------
Financial Services -- 8.0%
13,400 American Express Co. 1,370,150
7,584 Associates First Capital Corp., Class A 321,372
33,575 Charles Schwab Corp. 1,886,495
27,900 Citigroup, Inc. 1,381,050
29,200 Fannie Mae 2,160,800
----------
7,119,867
----------
Food / Beverage Products -- 4.3%
7,300 Anheuser-Busch Companies, Inc. 479,063
21,600 Coca-Cola Co. 1,444,500
12,700 Heinz (H.J.) Co. 719,137
14,800 PepsiCo, Inc. 605,875
6,700 Unilever NV, ADR (Netherlands) 555,681
----------
3,804,256
----------
Health Care / Health Care Services -- 1.3%
6,250 Guidant Corp. 689,062
5,950 Medtronic, Inc. 441,788
----------
1,130,850
----------
Insurance -- 4.4%
22,100 American General Corp. 1,723,800
22,950 American International Group 2,217,544
----------
3,941,344
----------
Metals / Mining -- 0.6%
7,450 Aluminum Co. of America (ALCOA) 555,491
----------
See notes to financial statments.
19
<PAGE>
Chase Core Equity Fund
Portfolio of Investments December 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------------------------
Office / Business Equipment -- 1.0%
6,550 Pitney-Bowes, Inc. $ 432,709
3,800 Xerox Corp. 448,400
----------
881,109
----------
Oil & Gas -- 6.9%
8,800 Chevron Corp. 729,850
13,400 Enron Corp. 764,637
21,700 Exxon Corp. 1,586,813
16,500 Mobil Corp. 1,437,563
13,200 Royal Dutch Petroleum Co.,(Netherlands)
New York Registered Shares 631,950
9,350 Texaco, Inc. 494,381
14,100 Williams Companies, Inc. 439,744
----------
6,084,938
----------
Pharmaceuticals -- 11.6%
15,200 Abbot Laboratories 744,800
13,400 American Home Products Corp. 754,587
9,900 Bristol-Myers Squibb Co. 1,324,744
10,300 Eli Lilly & Co. 915,413
11,100 Johnson & Johnson, Inc. 931,013
11,900 Merck & Co., Inc. 1,757,481
14,400 Pfizer, Inc. 1,806,300
27,000 Schering-Plough Corp. 1,491,750
7,100 Warner-Lambert Co. 533,831
----------
10,259,919
----------
Photographic Equipment -- 0.6%
6,800 Eastman Kodak Co. 489,600
----------
Restaurants / Food Services -- 0.5%
5,400 McDonald's Corp. 413,775
----------
Retailing -- 11.0%
14,500 Albertson's, Inc. 923,469
18,450 Best Buy Co., Inc. * 1,132,369
15,250 Dayton-Hudson Corp. 827,312
16,150 Gap, Inc. 908,438
24,000 Home Depot, Inc. 1,468,500
15,100 Kroger Co.* 913,550
20,800 Walgreen Co. 1,218,100
28,900 Wal-Mart Stores, Inc. 2,353,544
----------
9,745,282
----------
See notes to financial statments.
20
<PAGE>
Chase Core Equity Fund
Portfolio of Investments December 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------------------------
Semi-Conductors -- 2.1%
15,300 Intel Corp. $1,814,006
----------
Telecommunications -- 7.6%
17,850 AT&T Corp. 1,343,212
22,500 BellSouth Corp. 1,122,187
13,800 GTE Corp. 930,638
16,950 MCI WorldCom, Inc. * 1,216,163
31,200 SBC Communications, Inc. 1,673,100
4,750 Sprint Corp. (FON Group) 399,594
2,325 Sprint Corp. (PCS Group) * 53,766
----------
6,738,660
----------
Utilities -- 1.5%
44,700 NIPSCO Industries Inc. 1,360,556
- --------------------------------------------------------------------------------
Total Long-Term Investments
(Cost $53,764,060) 85,519,015
- --------------------------------------------------------------------------------
Short-Term Investments -- 5.7%
- --------------------------------------------------------------------------------
Money Market Fund -- 4.1%
3,607,789 Fidelity Colchester Street Trust Government Fund
(Cost $3,607,789) 3,607,789
----------
Principal
Amount Repurchase Agreement -- 1.6%
$1,443,000 Credit Suisse First Boston Finance
(Secured by Federal National Mortgage Association
obligations), in a joint trading account at 5.10%,
dated 12/31/98 due 01/04/99; Proceeds $1,443,918
(Cost $1,443,000) 1,443,000
- --------------------------------------------------------------------------------
Total Short-Term Investments
(Cost $5,050,789) 5,050,789
- --------------------------------------------------------------------------------
Total Investments -- 102.3%
(Cost $58,814,849) $ 90,569,804
- --------------------------------------------------------------------------------
Index:
* = Non-income producing security.
# = Security may only be sold to qualified institutional buyers.
ADR = American Depositary Receipt.
See notes to financial statment
21
<PAGE>
Chase Equity Growth Fund
as of December 31, 1998
(unaudited)
How the Fund Performed
Chase Equity Growth Fund, which seeks to provide capital appreciation by
investing primarily in equity-based securities, had a total return of 41.38%
(Premier Shares) for the one-year period ended December 31, 1998.
How the Fund Was Managed
A general upturn in equity prices, good stock selection and a prudent asset
allocation strategy were mainly responsible for the Fund's investment results.
The period began with health care and technology stocks providing good
investment results for shareholders. Several consumer-oriented stocks also
recorded impressive gains, thanks largely to stronger-than-expected earnings and
a robust economic environment.
In May, external economic problems weighed heavily on stock prices, just as they
did in late 1997. After rebounding, stocks came under pressure just two months
later, as the Russian financial crisis hit. During this period, the Fund
benefited from its investment in defensive stocks and its underweighting in
sectors that underperformed the broader market.
Late in the fiscal period, the Fund enjoyed good performance from its exposure
to the technology sector. Stocks in this group bounced back strongly following
the Federal Reserve Board's decision to trim short-term interest rates in late
September and again in October and November. Additionally, the Fund's investment
in small stocks helped performance as secondary stocks registered strong
investment results late in the year.
Where the Fund May Be Headed
Given the favorable economic environment, our outlook for the Fund is positive.
We are particularly optimistic about small-cap stocks. Valuations remain
attractive, especially when compared to large-cap stocks. And their recent
strong performance may indicate the start of a new, long-awaited upturn in the
prices of these securities. (Small stocks have underperformed their large-cap
counterparts over the past four years.)
The economy could experience a slowdown later this year, as the impact of
economic problems outside the U.S. affect domestic earnings growth. However,
given our generally favorable forecast for the market and the economy, we intend
to use downturns as opportunities to increase our exposure in attractively
priced companies with solid fundamentals and above-average earnings prospects.
22
<PAGE>
Chase Equity Growth Fund
as of December 31, 1998
(unaudited)
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 Index
Lipper Funds Universe Growth Funds Index
Inception date Premier Shares 3/29/88
Investor Shares 8/13/98
Newspaper symbol Eq Gro
Dividend Frequency Quarterly
Net Assets Premier Shares $178,956,000
Investor Shares $1,369,000
Investment Style/Market Cap
----------------
| |////| | Large
| |////| |
----------------
| | | | Med
| | | |
---------------
| | | | Small
| | | |
----------------
Value Blend Growth
23
<PAGE>
Chase Equity Growth Fund
as of December 31, 1998
(unaudited)
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 Lipper Growth S&P Barra
Equity Growth Funds Growth
Date Fund Index Index
- ---- ------------- ------------- ---------
10000 10000 10000
10973.3 10784.4 10648.8
11927.5 11699.9 11622.1
12595.4 12853.5 13115.2
1989 12547.7 12747.2 13639.9
12385.5 12407.2 13200.7
13912.2 13243.2 14504.6
11746.2 11065.9 12409.2
1990 12366.4 12057 13666.8
14799.6 14149.1 15918.4
14026.7 13931.8 15799.5
14856.9 15104 16804.4
1991 16278.6 16437.3 18911.2
15887.4 16177.9 17929.3
15410.3 15859.4 17882.7
15963.7 16262.8 18692.2
1992 17328.2 17691.9 19869.4
17461.8 18217.4 19770.5
17337.8 18486 19364.4
17528.6 19373.3 19357
1993 17757.6 19811 20203.5
17166 19218.4 19330.1
16956.1 18798.2 19313.3
17738.6 19720.6 20693.4
1994 17595.4 19499.7 20835.3
18816.8 20909.3 22881.4
20391.2 23147.1 25248.1
21679.4 25250.1 27251.7
1995 22137.4 25866.9 28780.2
23349.2 27032.2 30024.9
24389.3 27926.1 32133.5
24866.4 28734.3 33264.6
1996 26669.8 30401.9 35681.4
27557.2 30288 36955.6
33110.7 35072.3 44451.4
35849.2 38667 47065.7
1997 36603.1 38924.6 48663
41325.4 43743.1 56575.5
44751.7 44985.6 59888.9
40619.2 39852.3 55549.4
1998 51872 48924.3 69175.2
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 41.38% 32.68% 23.84% 17.88%
Investor Shares 41.19% 32.62% 23.80% 17.86%
* 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. The Fund is currently waiving certain fees. The voluntary waiver may be
modified or terminated at any time, which would reduce performance.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Equity Growth Fund, the Standard & Poor's Barra Growth
Index and Lipper Growth Funds Index from December 31, 1988 to December 31, 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 $1 million minimum initial investment and
carry no sales charge.
Investor Shares were introduced on 8/13/98 and have a minimum initial investment
of $2,500. Please note internal expenses are greater for the Investor Shares
class. Performance measurements for the Investor Shares prior to 8/13/98 are
based on the predecessor Premier Shares class and do not include Investor Share
class expenses.
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 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 December 31, 1998
(unaudited)
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 1.2%
Basic Materials 0.4%
Cash Equivalent & Short Term Paper 3.6%
Utilities 7.3%
Technology 32.3%
Health Care 21.6%
Financial 7.2%
Energy 0.9%
Transportation 0.8%
Consumer Staples 3.7%
Consumer Cyclicals 21.0%
Top Ten Equity Holdings
1. Microsoft Corp. (5.3%) Develops, manufactures, licenses and supports
computer software products.
2. General Electric Corp. (4.3%) A diversified manufacturing, technology and
services company. Operations include appliance manufacturing, capital
services, information services, and electrical distribution.
3. International Business Machines Corp. (3.3%) Manufactures, micro and
personal computers. The Company also supplies mainframe computers and other
information processing equipment, software and networking products and
peripheral equipment.
4. Intel Corp. (3.1%) Manufactures micro and personal computers. The Company
also supplies mainframe computers and other information processing
equipment, software and networking products and peripheral equipment.
5. Lucent Technologies, Inc. (3.1%) Designs, develops, manufactures, and
distributes communications systems, software, and products worldwide.
6. Wal-Mart Stores, Inc. (3.0%) The "Wal-Mart" Company's discount stores and
"Supercenters" offer merchandise such as apparel, housewares, small
appliances, electronics, hardware, and other products.
7. Merck & Co. (2.9%) 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.
8. Kroger Co. (2.6%) Operates supermarkets and convenience stores and
processes food. The Company also operates food processing facilities which
supply private label products to the Company's supermarkets.
9. Coca-Cola Co. (2.6%) Manufactures, markets, and distributes soft drink
concentrates and syrups, some finished beverages, and certain juice and
juice-drink products.
10. Pfizer, Inc. (2.5%) 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.
Top 10 equity holdings comprised 32.7% 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 December 31, 1998
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- 96.4%
- --------------------------------------------------------------------------------
Common Stock -- 96.4%
---------------------
Airlines -- 0.8%
63,725 Southwest Airlines Co. $1,429,830
----------
Banking -- 0.4%
7,000 J.P. Morgan & Co., Inc. 735,438
----------
Biotechnology -- 3.2%
38,350 Amgen, Inc.* 4,009,972
20,650 Biogen, Inc. * 1,713,950
----------
5,723,922
----------
Chemicals -- 0.4%
12,500 E.I. Du Pont de Nemours and Co. 663,281
----------
Communications Equipment -- 3.0%
49,998 Lucent Technologies, Inc. 5,499,780
----------
Computer Networks -- 2.6%
40,075 Cisco Systems, Inc. * 3,719,461
29,550 Newbridge Networks Corp. (Canada) * 897,581
----------
4,617,042
----------
Computer Software -- 5.9%
10,100 Citrix Systems, Inc. * 980,331
69,400 Microsoft Corp. * 9,624,913
----------
10,605,244
----------
Computers / Computer Hardware -- 11.1%
85,950 Compaq Computer Corp. 3,604,528
48,100 Dell Computer Corp. * 3,520,319
51,100 EMC Corp.* 4,343,500
32,250 International Business Machines Corp. 5,958,188
27,100 Solectron Corp.* 2,518,606
----------
19,945,141
----------
Consumer Products -- 4.4%
22,450 Gillette Co. 1,084,616
71,800 Philip Morris Companies, Inc. 3,841,300
31,050 Procter & Gamble Co. 2,835,253
4,500 Select Comfort Corp. * 118,969
----------
7,880,138
----------
Diversified -- 1.2%
28,100 Tyco International LTD (Bermuda) 2,119,794
----------
See notes to financial statements
26
<PAGE>
Chase Equity Growth Fund
Portfolio of Investments December 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------------------------
Electronics / Electrical Equipment -- 6.6%
42,800 American Power Conversion Corp.* $2,073,125
32,850 Applied Materials, Inc. * 1,402,284
75,200 General Electric Co. 7,675,100
13,750 Motorola, Inc. 839,609
----------
11,990,118
----------
Entertainment / Leisure -- 2.1%
61,000 Time Warner, Inc. 3,785,813
----------
Financial Services -- 5.1%
58,650 Charles Schwab Corp. 3,295,397
41,400 Fannie Mae 3,063,600
27,000 Merrill Lynch & Co. 1,802,250
14,800 Morgan Stanley, Dean Witter, Discover and Co. 1,050,800
----------
9,212,047
----------
Food / Beverage Products -- 3.7%
12,400 Anheuser-Busch Companies, Inc. 813,750
68,850 Coca-Cola Co. 4,604,344
30,600 PepsiCo, Inc. 1,252,688
----------
6,670,782
----------
Health Care / Health Care Services -- 1.7%
20,953 Genzyme Corp. (General Division) * 1,042,412
2,263 Genzyme Molecular Oncology * 7,355
10,050 Guidant Corp. 1,108,013
11,850 Medtronic, Inc. 879,863
----------
3,037,643
----------
Insurance -- 1.7%
30,775 American International Group 2,973,634
----------
Oil & Gas -- 0.9%
23,500 Exxon Corp. 1,718,437
----------
Pharmaceuticals -- 16.7%
40,500 Abbot Laboratories 1,984,500
47,850 American Home Products Corp. 2,694,553
27,600 Bristol-Myers Squibb Co. 3,693,225
38,250 Eli Lilly & Co. 3,399,469
36,700 Johnson & Johnson, Inc. 3,078,212
35,500 Merck & Co., Inc. 5,242,906
35,500 Pfizer, Inc. 4,453,031
56,700 Schering-Plough Corp. 3,132,675
33,500 Warner-Lambert Co. 2,518,781
----------
30,197,352
----------
See notes to financial statements
27
<PAGE>
Chase Equity Growth Fund
Portfolio of Investments December 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------------------------
Photographic Equipment -- 1.0%
24,450 Eastman Kodak Co. $1,760,400
----------
Restaurants / Food Services -- 0.5%
12,150 McDonald's Corp. 930,994
----------
Retailing -- 13.1%
64,300 Albertson's, Inc. 4,095,106
30,300 Bed Bath & Beyond, Inc. * 1,033,987
17,400 Best Buy Co., Inc. * 1,067,925
74,775 Gap, Inc. 4,206,094
41,400 Home Depot, Inc. 2,533,162
78,400 Kroger Co.* 4,743,200
12,650 Tandy Corp. 521,022
66,400 Wal-Mart Stores, Inc. 5,407,450
----------
23,607,946
----------
Semi-Conductors -- 3.1%
46,750 Intel Corp. 5,542,797
----------
Telecommunications -- 7.2%
11,550 AirTouch Communications, Inc. * 833,044
33,550 Ameritech Corp. 2,126,231
23,300 AT&T Corp. 1,753,325
22,900 BellSouth Corp. 1,142,137
13,150 GTE Corp. 886,803
38,900 MCI WorldCom, Inc. * 2,791,075
42,200 SBC Communications, Inc. 2,262,975
13,400 Sprint Corp. (FON Group) 1,127,275
6,700 Sprint Corp. (PCS Group) * 154,937
----------
13,077,802
- --------------------------------------------------------------------------------
Total Long-Term Investments
(Cost $102,412,572) 173,725,375
- --------------------------------------------------------------------------------
See notes to financial statements
28
<PAGE>
Chase Equity Growth Fund
Portfolio of Investments December 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- 3.6%
- --------------------------------------------------------------------------------
Money Market Fund -- 2.7%
4,839,960 Fidelity Colchester Street Trust Government Fund
(Cost $4,839,960) $4,839,960
Principal
Amount
Repurchase Agreement -- 0.9%
$1,722,000 Credit Suisse First Boston Finance
(Secured by Federal National Mortgage Association
obligations), in a joint trading account at 5.10%,
dated 12/31/98 due 01/04/99; Proceeds $1,722,976
(Cost $1,722,000) 1,722,000
- --------------------------------------------------------------------------------
Total Short-Term Investments
(Cost $6,561,960) 6,561,960
- --------------------------------------------------------------------------------
Total Investments -- 100.0%
(Cost $108,974,532) $180,287,335
- --------------------------------------------------------------------------------
Index:
* = Non-income producing security.
# = Security may only be sold to qualified institutional buyers.
ADR = American Depositary Receipt.
See notes to financial statements.
29
<PAGE>
Chase Equity Income Fund
as of December 31, 1998
(unaudited)
How the Fund Performed
Chase Equity Income Fund, which seeks to provide capital appreciation as well as
current income by investing primarily in equity-based securities, had a total
return of 26.2% (Premier Shares) for the one-year period ended December 31,
1998.
How the Fund Was Managed
A strong equity market, outstanding stock selection and a favorable economic
environment were the main reasons behind the Fund's good performance in 1998.
Early in the period, the Fund benefited from its exposure to high-quality growth
stocks in the financial, technology and health care sectors. These groups
rallied largely due to waning fears of a global economic recession brought on by
fiscal troubles in southeast Asia and clear signs the domestic economy was on
solid ground.
In the summer, the global liquidity crisis ignited by the Russian
financial debacle weighed heavily on the Fund. However, management's relatively
conservative investment strategy helped protect shareholder capital during the
downdraft. The Fund's emphasis on defensive companies (those whose earnings
growth is less affected by economic activity than the overall market) also
contributed favorably to performance during this period.
When the market rallied late in the year, thanks largely to the Federal
Reserve Board's decision to embark on an easing monetary policy, the Fund
enjoyed good performance across a broad range of industries. The technology,
financial and health care sectors were among the better performing groups.
Where the Fund May Be Headed
Looking ahead, our outlook for the stock market remains favorable. Domestic
economic conditions are positive, with interest rates hovering at near-record
levels and inflation still under control. Additionally, consumer confidence
remains high and the corporate earnings outlook continues to be good.
Admittedly, economic problems outside the U.S. may have a spillover effect on
the domestic equity market in 1999. However, since we believe the fundamentals
for further stock market gains remain sound, we intend to use any meaningful
market downturn as an opportunity to increase our exposure in sound companies
with good long-term earnings prospects. We continue to believe our strategy of
investing in high-quality growth companies with predictable earnings streams
will bode well for investors in the months ahead.
30
<PAGE>
Chase Equity Income Fund
as of December 31, 1998
(unaudited)
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 Premier Shares 3/29/88
Investor Shares 8/24/98
Newspaper symbol EqInc
Dividend Frequency Quarterly
Net Assets Premier Shares $127,838,000
Investor Shares $80,000
Investment Style/Market Cap
----------------
| |////| | High
| |////| |
----------------
| | | | Med
| | | |
---------------
| | | | Low
| | | |
----------------
Short Int. Long
31
<PAGE>
Chase Equity Income Fund
as of December 31, 1998
(unaudited)
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 Equity Lipper Equity Income
Year Income Fund Funds Index S&P 500 Index
- ---- -------------------- -------------------- ----------------------
10000 10000 10000
10613 10599.8 10709
11344.9 11410.5 11654.2
12534.3 12264.8 12902.4
1989 12241.5 12264 13168.6
11784.1 11906.7 12772.5
12131.8 12221.2 13575.9
10805.1 10910.9 11710.2
1990 11701.7 11637 12759.8
12753.9 12965.9 14613.3
12827.1 13053.2 14579.8
13540.7 13863.4 15359.4
1991 14272.6 14741.9 16647.2
13842.6 14686.2 16226.7
14062.2 15094.3 16535.3
14345.8 15530.5 17056.7
1992 15086.9 16177.7 17915.6
16075 17287.3 18698
16322 17597.1 18789
17090.6 18353 19274.5
1993 16944.2 18579.2 19721.3
16303.8 17937.3 18973.4
16194 18109.6 19053.3
16422.7 18876.2 19984.8
1994 16367.8 18409.1 19981.7
17749.3 19797.3 21927.3
19094.2 21170.2 24020.4
20823.4 22703.8 25929.4
1995 21893.9 23900.7 27490.4
22927.7 24934.7 28965.7
23559 25573.1 30265.8
24172 26225.1 31202.4
1996 25809.7 28195.9 33802.2
26514.2 28671.2 34708.3
31033.8 32404.9 40770.6
32918.6 34945.1 43821.3
1997 33824.3 35852.7 45079.8
37837.1 39482.6 51368.6
39056.8 39292.4 53064.8
35904.4 35394.2 47786.0
1998 42685.7 40075.4 58027.1
[GRAPH]
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 26.20% 24.89% 20.28% 15.62%
Investor Shares 26.12% 24.87% 20.26% 15.61%
* 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.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Equity Income, the Standard & Poor's 500 Index and the
Lipper Equity Income Funds Index from December 31, 1988 to December 31, 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 $1 million minimum initial investment and
carry no sales charge. Investor Shares were introduced on 8/24/98 and have a
minimum initial investment of $2,500. Please note internal expenses are greater
for the Investor Shares class. Performance measurements for the Investor Shares
prior to 8/24/98 are based on the predecessor Premium Shares class and do not
include Investor Share class expenses.
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 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 December 31, 1998
(unaudited)
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 7.6%
Basic Materials 4.2%
Cash Equivalent & Short-term paper 3.0%
Utilities 12.3%
Transportation 1.4%
Technology 16.8%
Health Care 14.4%
Financial 14.5%
Energy 8.6%
Consumer Staples 5.1%
Consumer Cyclicals 12.1%
Top Ten Equity Holdings
1. International Business Machines Corp. (4.2%) Manufactures micro and personal
computers. The Company also supplies mainframe computers and other
information processing equipment, software and networking products and
peripheral equipment.
2. Bristol-Myers Squibb Co. (3.3%) A diversified worldwide health and personal
care company that manufactures and markets pharmaceuticals, consumer
medicines, beauty care products, nutritionals, and medical devices.
3. General Electric Co. (2.9%) A diversified manufacturing, technology and
services company. Operations include appliance manufacturing, capital
services, information services, and electrical distribution.
4. 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.
5. Citigroup, Inc. (2.7%) A diversified financial services holding company that
provides investment services, including asset management, consumer finance
services, property and casualty insurance services, and life insurance
services.
6. Eli Lilly & Co. (2.6%) A global, research-based pharmaceutical corporation.
The Company creates and delivers pharmaceutical-based health care solutions
for neurological afflictions, diabetes, cardiovascular diseases and various
infectious diseases.
7. American International Group (2.5%) 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.
8. Procter & Gamble Co. (2.3%) Manufactures and markets consumer products for
laundry and cleaning, paper, beauty care, food, beverages, and health
care.
9. Lucent Technologies, Inc. (2.3%) Designs, develops, manufactures, and
distributes communications systems, software, and products worldwide.
10. Xerox Corp. (2.2%) Develops, manufactures, 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 27.8% 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 December 31, 1998
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- 97.0%
- --------------------------------------------------------------------------------
Common Stock -- 97.0%
Aerospace -- 4.0
17,100 Lockheed Martin Corp. $1,449,225
30,300 Raytheon Co., Class B 1,613,475
39,100 Sundstrand Corp. 2,028,313
----------
5,091,013
----------
Automotive -- 1.8%
22,500 Ford Motor Co. 1,320,469
14,500 General Motors Corp. 1,037,656
----------
2,358,125
----------
Banking -- 5.3%
59,500 Bank of New York Co., Inc. 2,394,875
30,500 First Union Corp. 1,854,781
32,700 SunTrust Banks, Inc. 2,501,550
----------
6,751,206
----------
Chemicals -- 3.6%
12,900 Dow Chemical Co. 1,173,094
27,300 E. I. Du Pont de Nemours and Co. 1,448,606
41,400 Monsanto Co. 1,966,500
----------
4,588,200
----------
Communications Equipment -- 2.3%
26,668 Lucent Technologies, Inc. 2,933,480
----------
Computer Software -- 2.1%
19,000 Microsoft Corp. * 2,635,063
----------
Computers / Computer Hardware -- 6.6%
16,800 Hewlett-Packard Co. 1,147,650
28,900 International Business Machines Corp. 5,339,275
23,300 Texas Instruments Inc. 1,993,606
----------
8,480,531
----------
Consumer Products -- 6.0%
23,300 Gillette Co. 1,125,681
44,690 Philip Morris Companies, Inc. 2,390,915
32,700 Procter & Gamble Co. 2,985,919
38,100 Ralston-Ralston Purina Group 1,233,488
----------
7,736,003
----------
See notes to financial statements.
34
<PAGE>
Chase Equity Income Fund
Portfolio of Investments December 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------------------------
Diversified -- 1.4%
48,000 Dover Corp. $1,758,000
----------
Electronics / Electrical Equipment -- 3.8%
36,300 General Electric Co. 3,704,869
18,200 Motorola, Inc. 1,111,338
----------
4,816,207
----------
Financial Services -- 4.9%
27,600 American Express Co. 2,822,100
70,249 Citigroup, Inc. 3,477,326
----------
6,299,426
----------
Food / Beverage Products -- 5.1%
23,400 Anheuser-Busch Companies, Inc. 1,535,625
27,400 Coca-Cola Co. 1,832,375
26,600 PepsiCo, Inc. 1,088,938
77,100 Sysco Corp. 2,115,431
----------
6,572,369
----------
Insurance -- 4.3%
32,745 American International Group 3,163,986
20,400 Transamerica Corp. 2,356,200
----------
5,520,186
----------
Multi-media -- 0.4%
15,900 The Walt Disney Co. 477,000
----------
Office / Business Equipment -- 2.2%
24,300 Xerox Corp. 2,867,400
----------
Oil & Gas -- 8.6%
30,800 Amoco Corp. 1,859,550
23,400 Chevron Corp. 1,940,738
23,400 Enron Corp. 1,335,263
26,000 Mobil Corp. 2,265,250
38,372 Royal Dutch Petroleum Co., New York Registered Shares 1,837,059
6,600 Schlumberger, LTD 304,425
26,500 Texaco, Inc. 1,401,187
----------
10,943,472
----------
See notes to financial statements.
35
<PAGE>
Chase Equity Income Fund
Portfolio of Investments December 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- (concluded)
- --------------------------------------------------------------------------------
Paper / Forest Products -- 0.6%
18,300 International Paper Co. $ 820,069
----------
Pharmaceuticals -- 14.4%
38,100 Abbot Laboratories 1,866,900
34,600 American Home Products Corp. 1,948,412
31,200 Bristol-Myers Squibb Co. 4,174,950
36,900 Eli Lilly & Co. 3,279,487
16,800 Johnson & Johnson, Inc. 1,409,100
14,200 Merck & Co., Inc. 2,097,162
29,000 Pfizer, Inc. 3,637,687
----------
18,413,698
----------
Retailing -- 3.9%
19,900 Home Depot, Inc. 1,217,631
17,600 J.C. Penney Co., Inc. 825,000
15,300 Sears Roebuck & Co. 650,250
27,600 Wal-Mart Stores, Inc. 2,247,675
----------
4,940,556
----------
Semi-Conductors -- 2.1%
22,300 Intel Corp. 2,643,944
----------
Shipping / Transportation -- 1.3%
34,900 Norfolk Southern Corp. 1,105,894
13,600 Union Pacific Corp. 612,850
----------
1,718,744
----------
Telecommunications -- 7.8%
28,700 Ameritech Corp. 1,818,862
25,200 AT&T Corp. 1,896,300
25,200 Bell Atlantic Corp. 1,431,675
36,000 BellSouth Corp. 1,795,500
20,800 GTE Corp. 1,402,700
30,100 SBC Communications, Inc. 1,614,112
----------
9,959,149
----------
Utilities -- 4.5%
45,900 DQE, Inc. 2,016,731
27,900 Duke Energy Corp. 1,787,344
63,800 NIPSCO Industries Inc. 1,941,912
----------
5,745,987
- --------------------------------------------------------------------------------
Total Long-Term Investments
(Cost $72,469,673) 124,069,828
- --------------------------------------------------------------------------------
See notes to financial statements.
36
<PAGE>
Chase Equity Income Fund
Portfolio of Investments December 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Short-Term Investments -- 3.0%
- --------------------------------------------------------------------------------
Money Market Fund -- 2.9%
3,741,900 Fidelity Colchester Street Trust Government Fund
(Cost $3,741,900) $ 3,741,900
------------
Principal
Amount
Repurchase Agreement -- 0.1%
$ 95,000 Credit Suisse First Boston Finance (Secured by Federal National
Mortgage Association obligations), in a joint trading account at
5.10%, dated 12/31/98 due 01/04/99; Proceeds $95,053
(Cost $95,000) 95,000
- --------------------------------------------------------------------------------
Total Short-Term Investments
(Cost $3,836,900) 3,836,900
- --------------------------------------------------------------------------------
Total Investments -- 100.0%
(Cost $76,306,573) $127,906,728
- --------------------------------------------------------------------------------
Index:
* = Non-income producing security.
# = Security may only be sold to qualified institutional buyers.
ADR = American Depositary Receipt.
See notes to financial statements.
37
<PAGE>
Chase Small Capitalization Fund
as of December 31, 1998
(unaudited)
How the Fund Performed
Chase Small Capitalization Fund, which seeks to provide capital appreciation by
investing in equity-based securities of small cap issuers, had a total return of
- -1.83% (Premier Shares) for the one-year period ended December 31, 1998.
How the Fund Was Managed
A rally by small cap stocks late in the fiscal year was chiefly responsible for
the Fund's performance.
Early in the period, electric utilities, technology and biotech stocks
contributed favorably to performance. Exposure to energy stocks detracted from
the Fund's performance, as stocks in this sector came under pressure due to
declining oil prices.
The late-summer stock market sell-off, ignited by the Russian financial crisis,
weighed most heavily on the Fund's investment results. Nonetheless, the Fund
enjoyed good results in two defensive sectors, health care and consumer staples.
Additionally, the Fund took advantage of the market pullback to increase its
exposure to quality, undervalued companies that management believes offers
shareholders attractive long-term growth prospects.
Late in the period, the Fund benefited from good sector allocation and strong
returns by secondary stocks. Consumer cyclicals were among the better performing
groups.
Where the Fund May Be Headed
Our outlook for small cap stocks is positive for several reasons. Despite the
strong run-up in price by small cap stocks in late 1998, their valuations are
still extremely attractive compared to their large-cap counterparts. What's
more, the strong showing by small caps at the end of the fiscal year suggests
investors may be getting ready to step-up their investment in these securities.
With the economic problems outside the U.S. still unresolved, we believe the
broader market will experience more volatility in the months ahead. However,
given our optimistic forecast for small companies, we intend to use any
meaningful downdraft in stock prices as an opportunity to increase our exposure
in high-quality stocks that meet our strict criteria for investment.
38
<PAGE>
Chase Small Capitalization Fund
as of December 31, 1998
(unaudited)
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 Funds Index
Inception date Premier Shares 4/1/93
Investor Shares 8/12/98
Newspaper symbol Sm Cap
Dividend Frequency Quarterly
Net Assets Premier Shares $64,742,000
Investor Shares $50,000
Investment Style/Market Cap
----------------
| | | | Large
| | | |
----------------
| | | | Med
| | | |
---------------
| |////| | Small
| |////| |
----------------
Value Blend Growth
<PAGE>
Chase Small Capitalization Fund
as of December 31, 1998
(unaudited)
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 Company S&P 600
Capitalization Fund Funds Index Index
- ------------------- -------------------- -------
10000.00 10000.00 10000.00
10000.00 10310.90 10217.60
10883.80 11261.30 11263.10
10892.40 11564.70 11469.10
10177.20 11146.50 10865.00
9551.41 10543.00 10408.40
10509.30 11525.10 11197.80
10225.50 11508.90 10921.30
11023.40 12155.00 11438.00
11447.80 13281.20 12527.70
12496.70 14941.50 14129.20
13409.50 15148.00 14194.10
14812.70 16002.60 15005.30
15893.00 17273.00 15787.10
16727.00 17490.70 16293.30
17550.80 17324.10 17219.90
16691.70 15692.60 16263.70
19536.70 18360.70 19210.00
22726.00 21160.20 22316.00
21776.10 19925.80 21625.50
23827.00 22061.40 24018.60
22376.50 21210.10 22944.50
18326.30 16672.20 18149.20
21375.70 19755.40 21342.00
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 -1.83% 16.80% 14.43% 14.11%
Investor Shares -1.93% 16.77% 14.41% 14.09%
* 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.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
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 Funds Index from April 1, 1993 to December
31, 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 $1 million minimum initial
investment and carry no sales charge.
Investor Shares were introduced on 8/12/98 and have a minimum initial investment
of $2,500. Please note internal expenses are greater for the Investor Shares
class. Performance measurements for the Investor Shares prior to 8/12/98 are
based on the predecessor Premier Shares class and do not included Investor Share
class expenses.
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 Funds Index represents the performance of the 30
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 December 31, 1998
(unaudited)
How Much of the Fund Was Invested
Investments (99.8%)
Cash/Other (0.2%)
What the Fund Invested In
Percentage of Total Portfolio Investments
Capital Goods (13.5%)
Basic Materials (2.5%)
Cash Equivalent & Short-Term Paper (5.2%)
REIT's (2.6%)
Utilities (3.5%)
Transportation (2.7%)
Technology (13.5%)
Health Care (12.2%)
Financial (13.1%)
Energy (4.1%)
Consumer Staples (0.9%)
Consumer Cyclicals (26.2%)
Top Ten Equity Holdings
1. Comverse Technology, Inc. (3.3%) Designs, manufactures, markets, and
supports computer and telecommunications systems and software for
multimedia communications and information processing applications.
2. Osteotech, Inc. (2.6%) Processes of human bone and bone connective tissue
for transplantation. The Company also develops and markets biomaterial and
implant products for musculoskeletal surgery.
3. Metzler Group, Inc. (2.4%) 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.
4. The Profit Recovery Group International, Inc. (2.3%) Provides accounts
payable and other recovery audit services to large retailers and other
transaction-intensive companies.
5. Eagle Hardware & Garden, Inc. (2.1%) Operates more than 30 warehouse home
improvement centers. The Stores offer do-it-yourself and home improvement
products to professional contractors and consumers.
6. BJ's Wholesale Club, Inc. (2.1%) A merchandise wholesale club chain. The
company sells brand name food and general merchandise at discount prices.
7. U.S. Foodservice, Inc. (2.1%) Distributes food and related products
to restaurants and institutional food service establishments across
the United Sates. The Company markets and distributes national,
private labels, and signature brand items.
8. MedQuist, Inc. (2.0%) Provides electronic transcription and data
management services to the healthcare industry. Through its software
and transcriptionists, the company converts free-form medical
dictation into electronically formatted patient records.
9. Cinar Films, Inc., Class B (2.0%) A fully integrated developer,
producer, post-producer and international distributor of animated and
live-action children's television programming.
10. National Computer
Systems, Inc. (2.0%) A global information services company. The
Company provides software, services, and systems for the collection,
management, and interpretation of data.
Top 10 equity holdings comprised 22.9% 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 December 31, 1998
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------------------------
Common Stock -- 97.0%
Aerospace -- 1.7%
45,825 AAR Corp. $1,094,072
----------
Agricultural Production / Services -- 0.0%
Delta & Pine Land Co. 37
----------
Apparel -- 2.4%
28,650 Kellwood Co. 716,250
25,900 Oshkosh B'Gosh, Inc., Class A 522,856
13,650 St. John Knits, Inc. 354,900
----------
1,594,006
----------
Automotive -- 1.2%
30,500 Tower Automotive, Inc. * 760,594
----------
Banking -- 7.7%
15,700 Bank United Corp., Class A 616,225
15,200 City National Corp. 632,700
27,250 Dime Community Bancorp., Inc. 562,031
48,150 First Sentinel Bancorp Inc. 391,219
26,730 First Washington Bancorp, Inc. 641,520
27,425 Flushing Financial Corp. 433,658
37,450 Harbor Florida Bancshares, Inc. 418,972
17,150 ISB Financial Corp. 379,444
20,850 ITLA Capital Corp. * 315,356
31,850 Klamath First Bancorp, Inc. 617,094
----------
5,008,219
----------
Biotechnology -- 2.7%
37,150 Osteotech, Inc. * 1,727,475
----------
Broadcasting -- 0.8%
12,650 Metro Networks, Inc. * 539,206
----------
Business Services -- 10.0%
47,950 Analysts International Corp. 923,037
21,600 Fair Issac & Co., Inc. 997,650
27,100 Iron Mountain Inc. * 977,294
32,400 Metzler Group, Inc. * 1,577,475
54,200 Personnel Group of America, Inc. * 948,500
24,400 Superior Consultant Holdings Corp. * 1,061,400
----------
6,485,356
----------
Chemicals -- 2.5%
22,900 Cambrex Corp. 549,600
49,250 Spartech Corp. 1,083,500
----------
1,633,100
----------
Computer Networks -- 1.3%
22,750 Black Box Corp. * 861,656
----------
See notes to financial statements.
42
<PAGE>
Chase Small Capitalization Fund
Portfolio of Investments December 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------------------------
Computer Software -- 3.2%
25,200 JDA Software Group, Inc. * $ 244,125
46,700 Platinum Software Corp. * 598,344
33,350 Visio Corp. * 1,219,359
----------
2,061,828
----------
Computers / Computer Hardware -- 6.4%
38,000 CHS Electronics, Inc. * 643,625
30,750 Comverse Technology, Inc. * 2,183,250
35,500 National Computer Systems, Inc. 1,313,500
----------
4,140,375
----------
Construction Materials -- 1.9%
33,200 Encore Wire Corp. * 307,100
32,300 NCI Building Systems, Inc. * 908,437
----------
1,215,537
----------
Consumer Products -- 0.8%
11,150 Chattem, Inc. * 533,806
----------
Distribution -- 3.8%
45,950 United Natural Foods, Inc. * 1,108,544
27,900 U.S. Foodservice, Inc. * 1,367,100
----------
2,475,644
----------
Electronics / Electrical Equipment -- 1.2%
65,700 Lo-Jack Corp. * 780,188
----------
Engineering Services -- 1.3%
21,350 Jacobs Engineering Group, Inc. * 870,013
----------
Entertainment / Leisure -- 2.0%
52,300 Cinar Films, Inc., Class B * 1,327,113
----------
Financial Services -- 2.9%
15,550 Financial Federal Corp. * 384,863
40,500 The Profit Recovery Group International, Inc. * 1,516,219
----------
1,901,082
----------
Food / Beverage Products -- 0.9%
31,900 Worthington Foods, Inc. 606,100
----------
Health Care / Health Care Services -- 9.9%
42,550 ADAC Laboratories * 849,670
27,250 Alternative Living Services, Inc. * 933,312
37,800 Ballard Medical Products 919,012
43,700 Hologic, Inc. * 529,863
36,500 IMPATH, Inc. * 967,250
34,300 MedQuist, Inc. * 1,354,850
26,225 Xomed Surgical Products, Inc. * 839,200
----------
6,393,157
----------
See notes to financial statements.
43
<PAGE>
Chase Small Capitalization Fund
Portfolio of Investments December 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------------------------
Insurance -- 2.8%
19,576 Delphi Financial Group, Inc., Class A * $1,026,516
29,500 Harleysville Group Inc. 761,469
----------
1,787,985
----------
Machinery & Engineering Equipment -- 2.7%
32,600 Gerber Scientific, Inc. 776,287
37,800 PRI Automation, Inc. * 982,800
----------
1,759,087
----------
Manufacturing -- 2.4%
39,500 Gardner Denver Machinery, Inc. * 582,625
36,650 Optical Coating Laboratory, Inc. 952,900
----------
1,535,525
----------
Oil & Gas -- 4.2%
24,550 Abraxas Petroleum Corp. * 107,406
18,900 Atwood Oceanics, Inc. * 321,300
45,478 Louis Dreyfus Natural Gas Corp. * 648,062
32,550 Plains Resources, Inc. * 467,906
48,200 Pride International, Inc. * 340,413
25,400 Range Resources Corp. 87,312
32,000 Seagull Energy Corp. * 202,000
14,350 St. Mary Land & Exploration Co. 265,475
30,800 Vintage Petroleum, Inc. 265,650
----------
2,705,524
----------
Real Estate Investment Trust -- 2.7%
33,000 Alexandria Real Estate Equities, Inc. 1,020,937
25,200 Weeks Corp. 710,325
----------
1,731,262
----------
` Retailing -- 7.7%
44,500 Ames Department Stores, Inc. * 1,201,500
29,700 BJ's Wholesale Club, Inc. * 1,375,481
42,700 Eagle Hardware & Garden, Inc. * 1,387,750
31,100 Lithia Motors, Inc. * 513,150
55,300 Stride Rite Corp. 483,875
----------
4,961,756
----------
Semi-Conductors -- 1.7%
37,400 Actel Corp., * 748,000
15,800 DSP Group, Inc. * 329,825
----------
1,077,825
----------
Shipping / Transportation -- 2.8%
32,850 MotivePower Industries, Inc. * 1,057,359
22,200 M.S. Carriers, Inc. * 731,213
----------
1,788,572
----------
See notes to financial statements.
44
<PAGE>
Chase Small Capitalization Fund
Portfolio of Investments December 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- (concluded)
- --------------------------------------------------------------------------------
Telecommunications -- 0.7%
35,200 STAR Communications, Inc. * $ 429,000
----------
Textiles -- 1.8%
23,950 Galey & Lord, Inc. * 206,569
22,550 Mohawk Industries, Inc. * 948,509
----------
1,155,078
----------
Utilities -- 2.9%
14,950 American States Water Co. 407,387
3,550 Laclede Gas Co. 94,963
11,500 Southwest Gas Corp. 309,063
27,700 UGI Corp. 657,875
13,800 Yankee Energy System, Inc. 401,925
----------
1,871,213
- --------------------------------------------------------------------------------
Total Long-Term Investments
(Cost $56,860,873) 62,811,391
- --------------------------------------------------------------------------------
Short-Term Investments -- 5.3%
- --------------------------------------------------------------------------------
Money Market Fund -- 3.2%
2,082,000 Fidelity Colchester Street Trust Government Fund
(Cost $2,082,000) 2,082,000
----------
Principal
Amount
Repurchase Agreement -- 2.1%
$1,372,000 Credit Suisse First Boston Finance (Secured by
Federal National Mortgage Association obligations),
in a joint trading account at 5.10%, dated
12/31/98 due 01/04/99; Proceeds $1,372,777
(Cost $1,372,000) 1,372,000
- --------------------------------------------------------------------------------
Total Short-Term Investments
(Cost $3,454,000) 3,454,000
- --------------------------------------------------------------------------------
Total Investments -- 102.3%
(Cost $60,314,873) $66,265,391
- --------------------------------------------------------------------------------
Index:
* = Non-income producing security.
# = Security may only be sold to qualified institutional buyers.
ADR = American Depositary Receipt.
See notes to financial statements.
45
<PAGE>
Chase Funds
Statement of Assets and Liabilities As of December 31,1998
<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>
ASSETS:
Investment securities, at
value (Note 1).............................. $ 58,671,296 $ 90,569,804 $ 180,287,335 $ 127,906,728 $ 66,265,391
Cash.......................................... 367 425 229 844 --
Receivables:
Investment securities sold.................. -- -- -- -- 42,446
Interest and dividends...................... 394,522 65,994 160,621 159,193 44,350
Trust shares sold........................... 72,529 12,328 88,281 14,619 19,909
Expense reimbursement
from Distributor........................... 3,205 3,507 5,391 3,796 4,172
------------- ------------- ------------- ------------- -------------
Total Assets............................... 59,141,919 90,652,058 180,541,857 128,085,180 66,376,268
------------- ------------- ------------- ------------- -------------
LIABILITIES:
Payables
Payable to custodian........................ -- -- -- -- 4,218
Investment securities purchased............. -- 1,931,664 -- -- 1,444,236
Trust shares redeemed....................... 12,700 42,146 22,660 19,639 36,627
Dividends payable........................... -- 1,295 433 6,656 --
Accrued liabilities: (Note 2)
Investment advisory fees.................... 24,314 42,474 101,913 67,867 25,526
Administration fees......................... 7,295 10,619 21,839 15,661 7,658
Custodian..................................... 13,652 15,556 15,367 14,455 15,174
Other....................................... 50,989 48,495 54,912 43,139 50,588
------------- ------------- ------------- ------------- -------------
Total Liabilities.......................... 108,950 2,092,249 217,124 167,417 1,584,027
------------- ------------- ------------- ------------- -------------
NET ASSETS:
Paid in capital............................... 45,894,273 56,505,483 109,519,595 76,324,264 60,898,256
Accumulated (distributions in excess
of) net investment income................... -- -- -- (6,656) 1,176
Accumulated (distributions in excess
of) net realized gain on investments........ 142,398 299,371 (507,665) -- (2,057,709)
Net unrealized appreciation
of investments.............................. 12,996,298 31,754,955 71,312,803 51,600,155 5,950,518
------------- ------------- ------------- ------------- -------------
Net Assets.................................... $ 59,032,969 $ 88,559,809 $ 180,324,733 $ 127,917,763 $ 64,792,241
============= ============= ============= ============= =============
Shares of beneficial interest outstanding
($.001 par value; unlimited
number of shares authorized)
Premier Shares................................ 1,708,980 3,338,742 3,417,537 2,770,399 3,243,034
Investor Shares............................... 548 885 26,170 1,733 2,532
Net asset value, maximum offering price
and redemption price per share
Premier Shares................................ $ 34.54 $ 26.52 $ 52.36 $ 46.14 $ 19.96
Investor Shares............................... $ 34.51 $ 26.52 $ 52.30 $ 46.23 $ 19.94
Cost of Investments........................... $ 45,674,998 $ 58,814,849 $ 108,974,532 $ 76,306,573 $ 60,314,873
------------- ------------- ------------- ------------- -------------
</TABLE>
See notes to financial statements
46
<PAGE>
Chase Funds
Statement of Operations For the year ended December 31,1998
<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>
INVESTMENT INCOME:
Dividend................................. $ 206,791 $ 788,486 $ 1,020,569 $ 1,579,462 $ 302,687
Interest................................. 1,344,855 157,417 261,828 219,517 198,590
Foreign taxes withheld -- (11,835) -- (4,216) --
------------ ------------ ------------ ------------ ------------
Total investment income................ 1,551,646 934,068 1,282,397 1,794,763 501,277
------------ ------------ ------------ ------------ ------------
EXPENSES: (Note 2)
Investment advisory fees................. 350,137 503,400 912,673 737,842 388,277
Administration fees...................... 70,028 100,680 182,533 147,568 77,654
Distribution fees........................ 7 9 511 49 26
Custodian fees........................... 70,674 74,115 78,805 67,780 78,180
Printing and postage..................... 14,603 20,768 35,573 29,315 18,382
Professional fees........................ 22,821 24,140 28,442 22,820 23,267
Registration costs....................... 18,305 20,416 22,545 20,866 17,894
Transfer agent fees...................... 34,048 38,674 48,658 18,037 40,886
Trustees fees and expenses............... 5,204 7,408 13,169 35,803 5,808
Other.................................... 17,125 11,326 14,291 13,028 12,739
------------ ------------ ------------ ------------ ------------
Total expenses......................... 602,952 800,936 1,337,200 1,093,108 663,113
------------ ------------ ------------ ------------ ------------
Less expenses bourne by Distributor.... 3,205 5,080 9,077 7,164 7,778
Less amounts waived (Note 2D).......... 132,891 124,647 110,723 102,107 137,605
------------ ------------ ------------ ------------ ------------
Net expenses.......................... 466,856 671,209 1,217,400 983,837 517,730
------------ ------------ ------------ ------------ ------------
Net investment income (loss)........ 1,084,790 262,859 64,997 810,926 (16,453)
------------ ------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain on investments......... 2,396,900 3,962,036 6,296,023 381,731 2,043,643
Change in net unrealized appreciation/
depreciation on investments............ 7,274,678 14,995,436 40,717,717 22,274,585 (3,092,240)
------------ ------------ ------------ ------------ ------------
Net realized and unrealized gain (loss)
on investments........................ 9,671,578 18,957,472 47,013,740 22,656,316 (1,048,597)
------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from operations....................... $ 10,756,368 $ 19,220,331 $ 47,078,737 $ 23,467,242 ($ 1,065,050)
============ ============ ============ ============ ============
</TABLE>
See notes to financial statements.
47
<PAGE>
Chase Funds
Statement of Changes in Net Assets For the Years Ended December 31,
<TABLE>
<CAPTION>
Chase Chase
Balanced Core Equity
Fund Fund
-------------------------------------------------------------
1998 1997 1998 1997
-------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)............................. $ 1,084,790 $ 701,584 $ 262,859 $ 279,116
Net realized gain on investments......................... 2,396,900 1,810,231 3,962,036 1,155,783
Change in net unrealized
appreciation/depreciation on investments............... 7,274,678 2,792,495 14,995,436 8,866,879
-----------------------------------------------------------
Increase (decrease) in net assets
from operations.......................................... 10,756,368 5,304,310 19,220,331 10,301,778
-----------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM: (Note IE)
Net investment income.................................... (1,084,790) -- (262,859) --
In excess of net investment income....................... (2,377) -- (3,276) --
Net realized gain on investment transactions............. (2,052,769) -- (3,659,389) --
In excess of net realized gain on investment
transactionsTotal dividends and distributions......... (3,139,936) -- (3,925,524) --
Increase (decrease) from capital share
transactions (Note 5).................................. 15,057,900 8,423,105 21,867,500 12,512,147
-----------------------------------------------------------
Total increase in net assets......................... 22,674,332 13,727,415 37,162,307 22,813,925
-----------------------------------------------------------
NET ASSETS:
Beginning of period.................................... 36,358,637 22,631,222 51,397,502 28,583,577
-----------------------------------------------------------
End of period.......................................... $ 59,032,969 $ 36,358,637 $ 88,559,809 $ 51,397,502
===========================================================
<CAPTION>
Chase Chase
Equity Growth Equity Income
Fund Fund
-----------------------------------------------------------------
1998 1997 1998 1997
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)............................. $ 64,997 $ 142,490 $ 810,926 $ 826,469
Net realized gain on investments......................... 6,296,023 4,969,397 381,731 5,012,917
Change in net unrealized appreciation/depreciation
on investments......................................... 40,717,717 16,308,101 22,274,585 12,446,787
----------------------------------------------------------------
Increase (decrease) in net assets from operations...... 47,078,737 21,419,988 23,467,242 18,286,173
----------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM: (Note IE)
Net investment income.................................... (64,997) -- (810,926) --
In excess of net investment income....................... (14,714) -- (17,798) --
Net realized gain on investment transactions............. (5,914,525) -- (381,731) --
In excess of net realized gain on investment
transactions............................................. -- -- (5,147) --
Total dividends and distributions.................... (5,994,236) -- (1,215,602) --
Increase (decrease) from capital share
transactions (Note 5).................................. 62,510,005 (2,017,883) 30,423,061 6,433,575
----------------------------------------------------------------
Total increase in net assets......................... 103,594,506 19,402,105 52,674,701 11,852,598
----------------------------------------------------------------
NET ASSETS:
Beginning of period.................................... 76,730,227 57,328,122 75,243,062 63,390,464
----------------------------------------------------------------
End of period.......................................... $ 180,324,733 $ 76,730,227 $ 127,917,763 $ 75,243,062
================================================================
<CAPTION>
Chase
Small Capitalization
Fund
-----------------------------
1998 1997
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)............................. $ (16,453) $ 39,809
Net realized gain on investments......................... 2,043,643 2,445,973
Change in net unrealized appreciation/depreciation
on investments......................................... (3,092,240) 4,450,108
----------------------------
Increase (decrease) in net assets from operations...... (1,065,050) 6,935,890
----------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM: (Note IE)
Net investment income -- --
In excess of net investment income -- --
Net realized gain on investment transactions............. (2,043,643) --
In excess of net realized gain on
investment transactions.................................. (2,080,394) --
----------------------------
Total dividends and distributions.................... (4,124,037) --
----------------------------
Increase (decrease) from capital share
transactions (Note 5).................................. 29,953,016 12,342,213
----------------------------
Total increase in net assets......................... 24,763,929 19,278,103
----------------------------
NET ASSETS:
Beginning of period.................................... 40,028,312 20,750,209
----------------------------
End of period.......................................... $ 64,792,241 $ 40,028,312
============================
</TABLE>
See notes to financial statements.
48
<PAGE>
Chase Funds
Notes to Financial Statements
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
series of the Trust. Each Fund offers Premier and Investor classes of shares.
All classes of shares have equal voting rights as to earnings, assets and voting
privileges, except that each class may bear different transfer agent,
distribution, and shareholder servicing expenses, and each class has exclusive
voting rights with respect to its distribution plan and shareholder servicing
agreement. Premier Shares may be purchased only by Financial Intermediaries who
are able to meet the minimum investment requirement.
The Funds were established on January 1, 1998 for the conversion of the AVESTA
Trust to the newly created Chase Funds of the Mutual Fund Investment Trust. The
AVESTA Trust contributed securities and other assets (net of liabilities), in
exchange for shares of the corresponding portfolio of the newly created Funds in
a tax-free exchange. The Chase Manhattan Bank has agreed to bear all costs
related to conversion.
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 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 -- Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Funds of the Trust may transfer
uninvested cash balances into one or more joint trading accounts for the
purpose of investing in repurchase agreements. It is the Funds' policy that
repurchase agreements are fully collateralized by U.S. Treasury and
Government Agency securities. All collateral is held in one or more joint
trading account 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 Fund may be delayed or
limited.
49
<PAGE>
Chase Funds
Notes to Financial Statements (continued)
C. Security transactions and investment income -- Investment transactions
are accounted for on the trade date (the date the order to buy or sell is
executed). Securities gains and losses are calculated on the identified
cost basis. Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date.
D. Federal income taxes -- Each Fund is treated as a separate taxable
entity for Federal income tax purposes. Each Fund's policy is to comply
with the provisions of the Internal Revenue Code applicable to regulated
investment companies and to distribute to shareholders all of its
distributable net investment income, and net realized gain on investments.
In addition, each Fund intends to make distributions as required to avoid
excise taxes. Accordingly, no provision for Federal income or excise tax is
necessary.
E. 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. The reclassifications for CEGF is as follows: paid in
capital was increased by $874,450, accumulated undistributed net investment
loss increased by $14,714 and accumulated undistributed net realized gains
were decreased by $889,164. The adjustments for the fund relate primarily
to the character for tax purposes of certain corporate actions.
F. Expenses -- In calculating the net asset value per share of each class,
investment income, realized and unrealized gains and losses and expenses
other than class specific expenses (including transfer agent fees), are
allocated daily to each class of shares based upon the proportion of net
assets of each class at the beginning of each day.
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 as outlined in Note 2.D.
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. Distribution and sub-administration fees -- Pursuant to a Distribution
and Sub-Administration Agreement, Chase Fund Distributors, Inc. ("CFD" or
the "Distributor"), a wholly owned subsidiary of The BISYS Group., acts as
the Funds' distributor and sub-administrator.
The Trust has adopted a Rule 12b-1 distribution plan for Investor Class
shares, which provides for the payment of distribution fees at an annual
rate of up to 0.25% of the average daily net assets attributable to
Investor Class shares of each of the Funds.
50
<PAGE>
Chase Funds
Notes to Financial Statements (continued)
For the sub-administrative services it performs, CFD is entitled to receive
a fee from each Fund at an annual rate equal to 0.05% of the Fund's average
daily net assets.
The Distributor voluntarily waived all or a portion of its fees as outlined
in Note 2.D.
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. Waivers of fees -- For the year ended December 31, 1998, the Investment
Advisor and Distributor voluntarily waived fees for each of the Funds 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>
Investment Advisory...... $132,884 $124,638 $110,212 $102,058 $137,579
Distribution............. 7 9 511 49 26
-------- -------- -------- -------- --------
Total.................... $132,891 $124,647 $110,723 $102,107 $137,605
======== ======== ======== ======== ========
</TABLE>
E. Other -- Certain officers of the Trust are officers of Chase 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.
3. Investment Transactions -- For the year ended December 31, 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)............ $14,855,154 $36,058,295 $91,314,977 $28,885,651 $48,461,122
Sales (excluding U.S.
Government)................. 9,875,026 20,551,727 40,963,675 2,399,408 21,891,590
Purchases of U.S.
Government................... 20,376,940 -- -- -- --
Sales of U.S. Government..... 15,797,689 -- -- -- --
</TABLE>
4. Federal Income Tax Matters -- For Federal income tax purposes, the cost and
unrealized appreciation (depreciation) in value of the investment securities at
December 31, 1998 are 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>
Aggregate cost................ $ 45,896,809 $ 58,845,915 $ 109,987,374 $ 76,306,573 $ 60,313,697
------------- ------------- ------------- ------------- -------------
Gross unrealized appreciation. $ 13,215,155 $ 32,457,586 $ 72,156,156 $ 52,919,738 $ 12,409,006
Gross unrealized depreciation. (218,857) (702,631) (843,353) (1,319,583) (6,458,488)
------------- ------------- ------------- ------------- -------------
Net unrealized appreciation... $ 12,996,298 $ 31,754,955 $ 71,312,803 $ 51,600,155 $ 5,950,518
============= ============= ============= ============= =============
</TABLE>
51
<PAGE>
Chase Funds
Notes to Financial Statements (continued)
5. Transactions in Shares of Beneficial Interest -- Transactions in Shares of
Beneficial Interest were as follows for the periods presented.
<TABLE>
<CAPTION>
Chase Balanced Fund
Year Ended December 31,
-----------------------------------------------------------------
Premier Shares 1998 1997
------------------------------- -----------------------------
Amount Shares Amount Shares
------------ --------- ------------ ---------
<S> <C> <C> <C> <C>
Shares sold.................................. $ 29,749,834 933,977 $ 17,984,284 638,998
Shares issued in reinvestment of distributions 3,139,190 93,643 -- --
Shares redeemed............................... (17,849,049) (561,412) (9,561,179) (352,780)
------------ -------- ------------ --------
Net increase (decrease) in Trust
shares outstanding........................... $ 15,039,975 466,208 $ 8,423,105 286,218
============ ======== ============ ========
<CAPTION>
October 16, 1998 Through
Investor Shares December 31, 1998
-------------------------------
Amount Shares
------------ ---------
<S> <C> <C>
Shares sold................................... $ 17,180 526
Shares issued in reinvestment
of distributions............................. 745 22
Shares redeemed............................... -- --
------------ --------
Net increase (decrease) in Trust
shares outstanding........................... $ 17,925 548
============ ========
</TABLE>
<TABLE>
<CAPTION>
Chase Core Equity Fund
Year Ended December 31,
-----------------------------------------------------------------
Premier Shares 1998 1997
------------------------------- -----------------------------
Amount Shares Amount Shares
------------ --------- ------------ ---------
<S> <C> <C> <C> <C>
Shares sold................................... $33,357,152 1,410,068 $21,816,166 1,107,322
Shares issued in reinvestment
of distributions.............................. 3,840,277 149,400 -- --
Shares redeemed............................... (15,351,432) (638,984) (9,304,019) (482,551)
------------ --------- ------------ ---------
Net increase (decrease) in Trust
shares outstanding........................... $21,845,997 920,484 $12,512,147 624,771
============ ========= =========== =========
<CAPTION>
September 10, 1998 Through
Investor Shares December 31, 1998
-------------------------------
Amount Shares
------------ ---------
<S> <C> <C>
Shares sold................................... $ 20,561 849
Shares issued in reinvestment
of distributions............................. 942 36
Shares redeemed............................... -- --
------------ --------
Net increase (decrease) in Trust
shares outstanding........................... $ 21,503 885
============ ========
</TABLE>
52
<PAGE>
Chase Funds
Notes to Financial Statements (continued)
<TABLE>
<CAPTION>
Chase Equity Growth Fund
Year Ended December 31,
-----------------------------------------------------------------
Premier Shares 1998 1997
------------------------------- -----------------------------
Amount Shares Amount Shares
------------ --------- ------------ ---------
<S> <C> <C> <C> <C>
Shares sold................................... $80,643,726 1,862,221 $16,841,951 488,810
Shares issued in reinvestment
of distributions............................. 5,871,689 115,978 -- --
Shares redeemed............................... (25,216,750) (561,164) (18,859,834) (539,124)
------------ -------- ------------ --------
Net increase (decrease) in Trust
shares outstanding........................... $ 61,298,665 1,417,035 $ (2,017,883) (50,314)
============ ========= ============ ========
<CAPTION>
August 13, 1998 Through
Investor Shares December 31, 1998
-------------------------------
Amount Shares
------------ ---------
<S> <C> <C>
Shares sold................................... $ 1,268,615 27,750
Shares issued in reinvestment
of distributions............................ 44,379 876
Shares redeemed.................................... (101,654) (2,456)
------------ --------
Net increase (decrease) in Trust
shares outstanding........................... $ 1,211,340 26,170
============ ========
</TABLE>
<TABLE>
<CAPTION>
Chase Equity Income Fund
Year Ended December 31,
-----------------------------------------------------------------
Premier Shares 1998 1997
------------------------------- -----------------------------
Amount Shares Amount Shares
------------ --------- ------------ ---------
<S> <C> <C> <C> <C>
Shares sold $ 49,581,563 1,208,602 $18,819,863 564,632
Shares issued in reinvestment of distributions 1,189,866 27,663 -- --
Shares redeemed (20,416,833) (501,276) (25,253,438) (776,284)
------------ -------- ------------ --------
Net increase (decrease) in Trust
shares outstanding $ 30,354,596 734,989 $ (6,433,575) (211,652)
============ ========= ============ ========
<CAPTION>
August 24, 1998 Through
Investor Shares December 31, 1998
-------------------------------
Amount Shares
------------ ---------
<S> <C> <C>
Shares sold................................... $ 68,102 1,725
Shares issued in reinvestment
of distributions............................. 363 8
Shares redeemed............................... -- --
------------ --------
Net increase (decrease) in Trust
shares outstanding........................... $ 68,465 1,733
============ ========
</TABLE>
53
<PAGE>
Chase Funds
Notes to Financial Statements (continued)
<TABLE>
<CAPTION>
Chase Small Capitalization Fund
Year Ended December 31,
-----------------------------------------------------------------
Premier Shares 1998 1997
------------------------------- -----------------------------
Amount Shares Amount Shares
------------ --------- ------------ ---------
<S> <C> <C> <C> <C>
Shares sold................................... $ 38,507,380 1,806,281 $ 19,285,660 1,005,821
Shares issued in reinvestment
of distributions............................ 3,987,812 210,217 -- --
Shares redeemed............................... (12,590,636) (611,403) (6,943,447) (349,979)
------------ -------- ------------ --------
Net increase (decrease) in Trust
shares outstanding........................... $ 29,904,556 1,405,095 $ 12,342,213 655,842
============ ========= ============ ========
<CAPTION>
August 12, 1998 Through
Investor Shares December 31, 1998
-------------------------------
Amount Shares
------------ ---------
<S> <C> <C>
Shares sold........................................ $ 45,269 2,364
Shares issued in reinvestment
of distributions............................. 3,191 168
Shares redeemed............................... -- --
------------ --------
Net increase (decrease) in Trust
shares outstanding........................... $ 48,460 2,532
============ ========
</TABLE>
6. Under current tax law, capital losses realized after October 31 may be
deferred and treated as occurring on the first day of the following fiscal year.
The Chase Small Capitalization Fund incurred losses of approximately $2,058,000,
after October 31, 1998. Such losses will be treated, for tax purposes, as
arising on January 1, 1999.
54
<PAGE>
Chase Funds
Notes to Financial Statements (continued)
- -------------------
Chase Balanced Fund
- -------------------
Financial Highlights
(Throughout Each Period Indicated)
<TABLE>
<CAPTION>
Premier Shares Investor Shares
------------------------------------------------------- ---------------
For the Years Ended December 31, 10/16/98*
------------------------------------------------------- Through
1998 1997 1996 1995 1994 12/31/98
-------------------------------------------------------------------------
<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 $ 31.87
-------------------------------------------------------------------------
Income from Investment Operations:
Net investment income........................... 0.73 0.74 0.63 0.57 0.46 0.10
Net gains or losses in securities
(both realized and unrealized)................ 6.53 4.86 1.78 3.52 (0.86) 3.95
-------------------------------------------------------------------------
Total from Investment Operations................ 7.26 5.60 2.41 4.09 (0.40) 4.05
-------------------------------------------------------------------------
Less Distributions:
Dividends from net investment income............ 0.73 -- -- -- -- 0.16
Distributions from capital gains................ 1.25 -- -- -- -- 1.25
In excess of net realized gain on investments... -- -- -- -- -- --
-------------------------------------------------------------------------
Total Distributions............................. 1.98 -- -- -- -- 1.41
-------------------------------------------------------------------------
Net Asset Value, End of Period................... $34.54 $ 29.26 $ 23.66 $ 21.25 $ 17.16 $ 34.51
=========================================================================
Total Return..................................... 25.15% 23.67% 11.31% 23.83% (2.27%) 12.78%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted).......... $59,014 $36,359 $22,631 $21,471 $22,802 $ 19
Ratios to Average Net Assets:#
Expenses........................................ 1.00% 1.00% 1.00% 1.00% 1.00% 1.25%
Net Investment Income........................... 2.32% 2.73% 2.82% 2.94% 2.69% 1.84%
Expenses without waivers and assumption
of expenses.................................... 1.28% 1.28% 1.17% 1.17% 1.17% 107.16%
Net investment income without waivers and
assumption of expenses........................ 2.04% 2.45% 2.65% 2.77% 2.52% (104.07%)
Portfolio Turnover Rate.......................... 58% 64% 70% 98% 157% 58%
</TABLE>
* Commencement of offering of class of shares
# Short periods have been annualized
See notes to financial statements.
55
<PAGE>
Chase Funds
Notes to Financial Statements (continued)
- ----------------------
Chase Core Equity Fund
- ----------------------
Financial Highlights
(Throughout Each Period Indicated)
<TABLE>
<CAPTION>
Premier Shares Investor Shares
-------------------------------------------------------- ---------------
For the Years Ended December 31, 9/10/98*
-------------------------------------------------------- Through
1998 1997 1996 1995 1994 12/31/98
--------------------------------------------------------------------------
<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 $21.49
--------------------------------------------------------------------------
Income from Investment Operations:
Net investment income........................... 0.09 0.14 0.16 0.17 0.18 --
Net gains or losses in securities
(both realized and unrealized)................ 6.44 5.17 2.77 2.48 (0.62) 6.22
--------------------------------------------------------------------------
Total from Investment Operations................ 6.53 5.31 2.93 2.65 (0.44) 6.22
--------------------------------------------------------------------------
Less Distributions:
Dividends from net investment income............ 0.09 -- -- -- -- 0.02
Distributions from capital gains................ 1.17 -- -- -- -- 1.17
In excess of net realized gain on investment.... -- -- -- -- -- --
--------------------------------------------------------------------------
Total Distributions............................. 1.26 -- -- -- -- 1.19
--------------------------------------------------------------------------
Net Asset Value, End of Period................... $ 26.52 $ 21.25 $ 15.94 $ 13.01 $ 10.36 $26.52
==========================================================================
Total Return..................................... 30.95% 33.33% 22.54% 25.53% (4.03%) 29.08%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted).......... $ 88,536 $51,398 $28,584 $24,367 $21,035 $ 24
Ratios to Average Net Assets:#
Expenses........................................ 1.00% 1.00% 1.00% 1.00% 1.00% 1.23%
Net investment income........................... 0.39% 0.74% 1.10% 1.44% 1.68% (0.03)%
Expenses without waivers and assumption
of expenses.................................... 1.18% 1.20% 1.14% 1.17% 1.27% 140.46%
Net investment income without waivers and
assumption of expenses........................ 0.21% 0.54% 0.96% 1.27% 1.41% (139.26)%
Portfolio Turnover Rate.......................... 32% 24% 29% 133% 129% 32%
</TABLE>
* Commencement of offering of class of shares
# Short periods have been annualized
See notes to financial statements.
56
<PAGE>
Chase Funds
Notes to Financial Statements (continued)
- ------------------------
Chase Equity Growth Fund
- ------------------------
Financial Highlights
(Throughout Each Period Indicated)
<TABLE>
<CAPTION>
Premier Shares Investor Shares
-------------------------------------------------------- ---------------
For the Years Ended December 31, 8/13/98*
-------------------------------------------------------- Through
1998 1997 1996 1995 1994 12/31/98
--------------------------------------------------------------------------
<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 $45.57
--------------------------------------------------------------------------
Income from Investment Operations:
Net investment income........................... 0.03 0.07 0.10 0.17 0.20 (0.02)
Net gains or losses in securities
(both realized and unrealized)................ 15.78 10.34 4.65 4.59 (0.37) 8.53
--------------------------------------------------------------------------
Total from Investment Operations................ 15.81 10.41 4.75 4.76 (0.17) 8.51
--------------------------------------------------------------------------
Less Distributions:
Dividends from net investment income............ 0.03 -- -- -- -- --
Distributions from capital gains................ 1.78 -- -- -- -- 1.78
In excess of net realized gain on investment.... -- -- -- -- -- --
--------------------------------------------------------------------------
Total Distributions............................. 1.81 -- -- -- -- 1.78
--------------------------------------------------------------------------
Net Asset Value, End of Period................... $ 52.36 $ 38.36 $ 27.95 $ 23.20 $ 18.44 $52.30
==========================================================================
Total Return..................................... 41.38% 37.20% 20.52% 25.78% (0.90%) 18.80%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted).......... $178,956 $73,730 $57,328 $45,578 $36,683 $1,369
Ratios to Average Net Assets:#
Expenses........................................ 1.00% 1.00% 1.00% 1.00% 1.00% 1.25%
Net investment income........................... 0.05% 0.20% 0.41% 0.78% 1.07% (0.19%)
Expenses without waivers and
assumption of expenses......................... 1.09% 1.11% 1.08% 1.10% 1.17% 5.88%
Net investment income without waivers and
assumption of expenses........................ (0.04%) 0.09% 0.33% 0.68% 0.90% 4.82%
Portfolio Turnover Rate.......................... 35% 35% 62% 99% 116% 35%
</TABLE>
* Commencement of offering of class of shares
# Short periods have been annualized
See notes to financial statements.
57
<PAGE>
Chase Funds
Notes to Financial Statements (continued)
- ------------------------
Chase Equity Income Fund
- ------------------------
Financial Highlights
(Throughout Each Period Indicated)
<TABLE>
<CAPTION>
Premier Shares Investor Shares
-------------------------------------------------------- ---------------
For the Years Ended December 31, 8/24/98*
-------------------------------------------------------- Through
1998 1997 1996 1995 1994 12/31/98
--------------------------------------------------------------------------
<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 $40.49
--------------------------------------------------------------------------
Income from Investment Operations:
Net investment income........................... 0.33 0.40 0.43 0.44 0.39 0.06
Net gains or losses in securities
(both realized and unrealized)................ 9.32 8.36 3.85 5.59 (1.01) 5.89
--------------------------------------------------------------------------
Total from Investment Operations................ 9.65 8.76 4.28 6.03 (0.62) 5.95
--------------------------------------------------------------------------
Less Distributions:
Dividends from net investment income............ 0.34 -- -- -- -- 0.07
Distributions from capital gains................ 0.14 -- -- -- -- 0.14
In excess of net realized gain on investment.... -- -- -- -- -- --
--------------------------------------------------------------------------
Total Distributions............................. 0.48 -- -- -- -- 0.21
--------------------------------------------------------------------------
Net Asset Value, End of Period................... $ 46.14 $ 36.97 $ 28.21 $ 23.93 $ 17.90 $46.23
==========================================================================
Total Return..................................... 26.20% 31.50% 17.87% 33.72% (3.37%) 14.70%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted).......... $127,838 $75,243 $63,390 $54,985 $39,296 $ 80
Ratios to Average Net Assets:#
Expenses........................................ 1.00% 1.00% 1.00% 1.00% 1.00% 1.18%
Net investment income........................... 0.82% 1.67% 1.67% 2.10% 2.13% 0.57%
Expenses without waivers and
assumption of expenses......................... 1.10% 1.11% 1.07% 1.09% 1.12% 37.61%
Net investment income without waivers and
assumption of expenses........................ 0.72% 1.56% 1.60% 2.01% 2.01% (35.86%)
Portfolio Turnover Rate.......................... 3% 14% 24% 11% 42% 3%
</TABLE>
* Commencement of offering of class of shares
# Short periods have been annualized
See notes to financial statements.
58
<PAGE>
Chase Funds
Notes to Financial Statements (continued)
- -------------------------------
Chase Small Capitalization Fund
- -------------------------------
Financial Highlights
(Throughout Each Period Indicated)
<TABLE>
<CAPTION>
Premier Shares Investor Shares
------------------------------------------------------- ---------------
For the Years Ended December 31, 8/12/98*
------------------------------------------------------- Through
1998 1997 1996 1995 1994 12/31/98
-------------------------------------------------------------------------
<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 $19.86
-------------------------------------------------------------------------
Income from Investment Operations:
Net investment income........................... (0.01) 0.02 0.01 0.05 0.06 (0.01)
Net gains or losses in securities
(both realized and unrealized)................ (0.46) 4.21 4.13 3.13 (0.72) 1.44
-------------------------------------------------------------------------
Total from Investment Operations................ (0.47) 4.23 4.14 3.18 (0.66) 1.43
-------------------------------------------------------------------------
Less Distributions:
Dividends from net investment income............ -- -- -- -- -- --
Distributions from capital gains................ 0.71 -- -- -- -- 0.71
In excess of net realized gain on investment.... 0.64 -- -- -- -- 0.64
-------------------------------------------------------------------------
Total Distributions............................. 1.35 -- -- -- -- 1.35
-------------------------------------------------------------------------
Net Asset Value, End of Period................... $19.96 $21.78 $17.55 $13.41 $10.23 $19.94
=========================================================================
Total Return..................................... (1.83%) 24.08% 30.88% 31.14% (6.12%) 7.56%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted).......... $64,742 $40,028 $20,750 $12,848 $9,267 $ 50
Ratios to Average Net Assets:#
Expenses........................................ 1.00% 1.00% 1.22% 1.35% 1.45% 1.24%
Net investment income........................... (0.03%) 0.13% 0.04% 0.46% 0.55% (0.18%)
Expenses without waivers and
assumption of expenses......................... 1.26% 1.40% 1.37% 1.50% 1.60% 74.81%
Net investment income without waivers and
assumption of expenses........................ (0.29%) (0.27%) (0.11%) 0.31% 0.40% (73.75%)
Portfolio Turnover Rate.......................... 45% 43% 68% 89% 120% 45%
</TABLE>
* Commencement of offering of class of shares
# Short periods have been annualized
See notes to financial statements.
59
<PAGE>
Report of Independent Accountants
To the Trustees and Shareholders of
Mutual Fund Investment Trust
In our opinion, the accompanying statement of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Chase Balanced Fund, Chase Core
Equity Fund, Chase Equity Growth Fund, Chase Equity Income Fund and Chase Small
Capitalization Fund (separate portfolios of Mutual Fund Investment Trust,
hereafter referred to as the "Trust") at December 31, 1998, the results of each
of their operations for the year then ended, the changes in each of their net
assets for each of the two years in the period then ended and the financial
highlights for each of the periods presented, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1998 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
February 8, 1999
60
<PAGE>
[This Page Intentionally Left Blank]
61
<PAGE>
[This Page Intentionally Left Blank]
62
<PAGE>
Chase Funds are distributed by Chase 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.
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 |
|----------|-------------------|
<PAGE>
[LOGO]
CHASE FUNDS(Service Mark)
Chase Funds Fulfillment Center
393 Manley Street
West Bridgewater, MA 02379
Chase Funds(Service Mark). 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
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
