MUTUAL FUND INVESTMENT TRUST, 497, 1999-09-07

MUTUAL FUND INVESTMENT TRUST
497, 1999-09-07

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<PAGE>

CHASE FUNDS
PREMIER SHARES

CHASE MONEY MARKET FUND

CHASE SHORT-INTERMEDIATE TERM
U.S. GOVERNMENT SECURITIES FUND

CHASE U.S. GOVERNMENT SECURITIES FUND

CHASE INTERMEDIATE TERM BOND FUND

CHASE INCOME FUND

CHASE BALANCED FUND

CHASE EQUITY INCOME FUND

CHASE CORE EQUITY FUND

CHASE EQUITY GROWTH FUND

CHASE SMALL CAPITALIZATION FUND

PROSPECTUS SEPTEMBER 7, 1999

Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of shares of this Fund or determined if
this prospectus is accurate or complete. It is a crime to state otherwise.

[LOGO]

CHASE FUNDS(Service Mark)

PSCF2-1-499

<PAGE>

CONTENTS

1 Chase Money Market Fund
5 Chase Short-Intermediate Term

U.S. Government Securities Fund
11 Chase U.S. Government Securities Fund
17 Chase Intermediate Term Bond Fund
23 Chase Income Fund
29 Chase Balanced Fund
35 Chase Equity Income Fund
40 Chase Core Equity Fund
45 Chase Equity Growth Fund
50 Chase Small Capitalization Fund
55 Fund management The Funds Investment Advisor

57 HOW YOUR ACCOUNT WORKS

57 Buying Fund shares

58 Selling Fund shares
58 Exchanging Fund shares

58 Other information concerning the Funds

59 DISTRIBUTIONS AND TAXES

61 FINANCIAL HIGHLIGHTS

72 WHAT THE TERMS MEAN

CHASE MONEY MARKET FUND

<PAGE>

THE FUND'S OBJECTIVE

The Fund aims to provide the highest possible level of current income while
still maintaining liquidity and preserving capital.

THE FUND'S MAIN INVESTMENT STRATEGY

The Fund invests in high quality, short-term money market instruments which are
issued and payable in U.S. dollars. The Fund principally invests in:

o high quality commercial paper and other short-term debt securities,
including floating and variable rate demand notes of U.S. and foreign
corporations

o debt securities issued or guaranteed by qualified banks. These are:
o U.S. banks with more than $1billion in total assets and foreign

branches of these banks

o foreign banks with the equivalent of more than $10 billion in total
assets and which have branches or agencies in the U.S.

o other U.S. or foreign commercial banks which the Fund's advisers
judge to have comparable credit standing

o securities issued or guaranteed by the U.S. Government, its agencies or
authorities

o asset-backed securities
o repurchase agreements.

The dollar weighted average maturity of the Fund will be 90 days or less and the
Fund will buy only those instruments which have remaining maturities of 397 days
or less.

The Fund may invest any portion of its assets in debt securities issued or
guaranteed by U.S. banks and their foreign branches. These include certificates
of deposit, time deposits and bankers' acceptances.

<PAGE>

CHASE MONEY MARKET FUND

The Fund seeks to maintain a net asset value of $1.00 per share.

The Fund invests only in securities issued and payable in U.S. dollars. Each
investment must have the highest short-term rating from at least two national
rating organizations, or one such rating if only one organization rates that
security. Alternatively, the security may have a guarantee that has such a
rating. If the security is not rated, it must be considered of comparable
quality by the Fund's advisers.

The Fund seeks to develop an appropriate portfolio by considering the
differences in yields among securities of different maturities, market sectors
and issuers.

The Fund may change any of its investment policies (including its investment
objective) without shareholder approval.

FREQUENCY OF TRADING

How frequently the Fund buys and sells securities will vary from year to year,
depending on market conditions. High trading activity generally means higher
transaction costs.

THE MAIN INVESTMENT RISKS

The Fund attempts to keep its net asset value constant, but there's no guarantee
it will be able to do so.

The value of money market investments tends to fall when prevailing interest
rates rise, although they're generally less sensitive to interest rate changes
than longer-term securities.

Repurchase agreements involve some risk to the Fund if the other party does not
live up to its obligations under the agreement.

The Fund's ability to concentrate its investments in the banking industry could
increase risks. The profitability of banks depends largely on the availability
and cost of funds, which can change depending upon economic conditions. Banks
are also exposed to losses if borrowers get into financial trouble and can't
repay their loans.

Investments in foreign banks and other foreign issuers may be riskier than
investments in the United States. That could be, in part, because of difficulty
converting investments into cash, political and economic instability, the
imposition of government controls, or regulations that don't match U.S.

standards.

Although the Fund seeks to be fully invested, it may at times hold some of its
assets in cash. This would hurt the Fund's performance.

The Fund, like any business, could be affected if the computer systems on which
it relies fail to properly process information beginning January 1, 2000. The
Fund's advisers are updating their own systems and encouraging service providers
to do the same, but there's no guarantee these systems will work properly. Year
2000 problems could also hurt issuers whose securities the Fund holds or
securities markets generally.

Securities in the Fund's portfolio may not earn as high a current income as
longer term or lower quality securities.

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. Although the Cash Management Money Market Fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the Fund.

<PAGE>

THE FUND'S PAST PERFORMANCE

The calculations assume that all dividends and distributions are reinvested in
the Fund. Some of the companies that provide services to the Fund have agreed
not to collect some expenses and to reimburse others. Without these agreements,
the performance figures would be lower than shown.

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[bar chart goes here]

Horizontal axis: Year

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Vertical axis: Return (%)

8.91 7.80 6.01 3.51 2.60 3.77 5.57 5.06 5.18 5.21

BEST QUARTER 2.05% 4th quarter, 1989

WORST QUARTER 0.62% 2nd quarter, 1993

AVERAGE ANNUAL TOTAL RETURNS
For the periods ending December 31, 1998

Past 1 year Past 5 years Past 10 years
<S> <C> <C> <C>

PREMIER CLASS SHARES 5.20% 4.60% 5.34%
</TABLE>

<PAGE>

CHASE MONEY MARKET FUND

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

Shareholder fees (fees paid directly from your investment):

None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

TOTAL
ANNUAL
FUND

MANAGEMENT DISTRIBUTION OTHER OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES

PREMIER CLASS 0.30% NONE 0.29% 0.59%
SHARES

[Footnote]

* The table is based on expenses incurred in the most recent fiscal year. The
actual Other expenses are currently expected to be 0.20% and Total annual Fund
operating expenses are expected not to exceed .50%. That's because The Chase
Manhattan Bank (Chase) and some of the Fund's other service providers have
volunteered not to collect a portion of their fees and to reimburse others.
Chase and these other service providers may end this arrangement at any time.
The table does not reflect charges or credits you might incur if you invest
through a financial institution.

EXAMPLE

This example helps you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period o your investment has a 5%
return each year, and

o the Fund's operating expenses are not waived and remain the same as shown
above.

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

NUMBER OF YEARS: 1 3 5 10
COSTS: $60 $189 $329 $738

<PAGE>

CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND

THE FUNDS OBJECTIVE

The Fund aims to provide as high a level of current income as is consistent with
preservation of capital.

THE FUND'S MAIN INVESTMENT STRATEGY

Under normal market conditions, the Fund will invest at least 70% of its total
assets in debt securities issued or guaranteed by the U.S. Government and its
agencies or authorities, and in repurchase agreements involving these
securities.

The Fund may invest in mortgage-related securities issued or guaranteed by
certain agencies of the U.S. Government. These may include investments in
collateralized mortgage obligations and principal-only and interest-only
stripped mortgage-backed securities.

To reduce volatility, under normal market conditions, the Fund maintains a
dollar-weighted average maturity for the overall portfolio of between two and
five years. This is because the prices of shorter-term securities tend to be
less volatile than the prices of longer-term securities. There is no restriction
on the maturity of any individual security in the portfolio. The Fund's adviser
adjusts the average maturity of the Fund based on its outlook for the economy.

<PAGE>

CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND

When making investment decisions for the Fund, the Fund's adviser considers many
factors in addition to current yield, including preservation of capital,
maturity and yield to maturity. The Fund's adviser will adjust the Fund's
investments in certain securities or types of securities based on its analysis
of changing economic conditions and trends. The Fund's adviser may sell one
security and buy another security of comparable quality and maturity to take
advantage of what it believes to be short-term differences in market values or
yields.

The Fund may invest in floating rate securities, whose interest rate adjusts
automatically whenever a specified interest rate changes, and in variable rate
securities, whose interest rates are changed periodically.

The Fund may enter into "dollar rolls" in which the Fund sells mortgage-backed
securities and at the same time contracts to buy back very similar securities on
a future date. It may also buy asset-backed securities. These receive a stream
of income from a particular asset, such as credit card receivables.

The Fund may also invest in high-quality, short-term money market instruments,
repurchase agreements and derivatives, which are investments that have a value
based on another investment, exchange rate or index. The Fund may use
derivatives to hedge various market risks or to increase the Fund's income or
gain.

To temporarily defend its assets during unusual market conditions, the Fund may
invest any portion of its assets in high quality money market instruments and
repurchase agreements.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs,
thus lowering performance, and increase your taxable dividends.

<PAGE>

THE MAIN INVESTMENT RISKS

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some specific risks of investing in
Short-Intermediate Term U.S. Government Securities Fund.

The value of fixed income investments such as bonds tends to fall when
prevailing interest rates rise. Such a drop in value could be worse if the Fund
invests a larger portion of its assets in debt securities with longer
maturities. That's because long-term debt securities are more sensitive to
interest rate changes than other fixed-income securities.

When the Fund invests in mortgage-related securities, the value of the Fund
could change more often and to a greater degree than if it did not buy
mortgage-backed securities. That's because the prepayment features on some
mortgage-related securities make them more sensitive to interest rate changes.
Mortgage-related securities are subject to scheduled and unscheduled principal
payments as property owners pay down or prepay their mortgages. As these
payments are received, they must be reinvested when interest rates may be lower
than on the original mortgage security. When interest rates are rising, the
value of fixed-income securities with prepayment features are likely to decrease
as much or more than securities without prepayment features. In addition, the
value of mortgage-related securities with prepayment features may not increase
as much as other fixed-income securities when interest rates fall.

Collateral mortgage obligations are issued in multiple classes, and each class
may have its own interest rate and/or final payment date. A class with an
earlier final payment date may have certain preferences in receiving principal
payments or earning interest. As a result, the value of some classes in which
the Fund invests may be more volatile.

The value of interest-only and principal-only mortgage backed securities is more
volatile than other types of mortgage-related securities. That's because they
are very sensitive not only to changes in interest rates, but also to the rate
of prepayments. A rapid or unexpected increase in prepayments can significantly
depress the price of interest-only securities, while a rapid or unexpected
decrease could have the same effect on principal-only securities. In addition,
these instruments may be illiquid.

While the principal and payments on certain of the Fund's portfolio securities
may be guaranteed, this does not mean that the market value of the security, or
the value of Fund shares, is guaranteed.

The Fund's performance will depend on the credit quality of its investments.
While U.S. Government securities are generally of high quality, a government
security that is not backed by the full faith and credit of the U.S. Treasury
may be affected by the creditworthiness of the agency or authority that issued
it.

Certain securities which the Fund may hold, such as stripped obligations and
zero coupon securities, are more sensitive to changes in interest rates than
ordinary interest-paying securities.

<PAGE>

CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND

Some asset-backed securities may have additional risk because they may receive
little or no collateral protection from the underlying assets.

If the interest rate on floating and variable rate securities falls, the Fund's
yield may decline and it may lose the opportunity for capital appreciation.

Dollar rolls, forward commitments and repurchase agreements involve some risk to
the Fund if the other party does not live up to its part of the agreement.

Derivatives may be more risky than other types of investments and could cause
losses that exceed the Fund's original investment.

If the Fund temporarily departs from its investment policies to defend its
assets, it may not achieve its investment objectives.

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.

<PAGE>

THE FUND'S PAST PERFORMANCE

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund's Premier Class shares has varied from year to year.
This provides some indication of the risks of investing in the Fund. The table
shows the average annual return over the past year, five years and since
inception. It compares that performance to the Lehman 1-3 Year Government Index
and the Lehman Intermediate Government Index.

The Lehman 1-3 Year Government Index consists of U.S. Treasury and agency
securities with maturities of one to three years. The Lehman Intermediate
Government Index consists of U.S. Treasury and agency securities with maturities
of one to 10 years.

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[bar chart goes here]

Horizontal axis: Year

1994 1995 1996 1997 1998

Vertical axis: Return (%)

- -1.05 12.01 2.68 6.30 7.35

BEST QUARTER: 4.21% 3rd quarter, 1998

WORST QUARTER -1.35% 1st quarter, 1994

AVERAGE ANNUAL TOTAL RETURNS
For the periods ending December 31, 1998

PAST 1 YEAR PAST 5 YEARS SINCE

INCEPTION

(4/1/93)

PREMIER CLASS SHARES 7.35% 5.36% 5.08%
LEHMAN 1-3 YEAR GOV'T INDEX 6.96% 5.96% 5.73%
LEHMAN INT GOV'T INDEX 8.44% 6.45% 6.36%

</TABLE>

<PAGE>

CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

Shareholder fees (fees paid directly from your investment):

None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

TOTAL
ANNUAL
FUND

MANAGEMENT DISTRIBUTION OTHER OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES

PREMIER CLASS SHARES 0.50% NONE 0.61% 1.11%

[Footnote]

* The table is based on expenses incurred in the most recent fiscal year. The
actual Management fee is currently expected to be 0.14% and Total annual Fund
operating expenses are expected not to exceed 0.75%. That's because The Chase
Manhattan Bank (Chase) and some of the Fund's other service providers have
volunteered not to collect a portion of their fees and to reimburse others.
Chase and these other service providers may end this arrangement at any time.
The table does not reflect charges or credits you might incur if you invest
through a financial institution.

EXAMPLE

This example helps you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period
o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as
shown above.

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

NUMBER OF YEARS: 1 3 5 10
COSTS $113 $353 $612 $1,352

<PAGE>

CHASE U.S. GOVERNMENT SECURITIES FUND

THE FUND'S OBJECTIVE

The Fund aims to provide current income while emphasizing preservation of
capital.

THE FUND'S MAIN INVESTMENT STRATEGY

Under normal market conditions, the average portfolio maturity of the Fund is
between five and 15 years. There is no restriction on the maturity of any
individual security in the portfolio. The Fund's adviser will adjust the
maturity based on its outlook for the economy.

<PAGE>

CHASE U.S. GOVERNMENT SECURITIES FUND

To temporarily defend its assets during unusual market conditions, the Fund may
invest any portion of its assets in high quality money market instruments and
repurchase agreements.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs,
thus lowering performance, and increase your taxable dividends.

<PAGE>

THE MAIN INVESTMENT RISKS

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some specific risks of investing in U.S.

Government Securities Fund.

When the Fund invests in mortgage-related securities, the value of the Fund
could change more often and to a greater degree than if it did not buy
mortgage-backed securities. That's because the prepayment features on some
mortgage-related securities make them more sensitive to interest rate changes.
Mortgage-related securities are subject to scheduled and unscheduled principal
payments as property owners pay down or prepay their mortgages. As these
payments are received, they must be reinvested when interest rates may be lower
than on the original mortgage security. When interest rates are rising, the
value of fixed- income securities with prepayment features are likely to
decrease as much or more than securities without prepayment features. In
addition, the value of mortgage-related securities with prepayment features may
not increase as much as other fixed-income securities when interest rates fall.

The value of interest-only and principal-only mortgage-backed securities is more
volatile than other types of mortgage-related securities. That's because they
are very sensitive not only to changes in interest rates, but also to the rate
of prepayments. A rapid or unexpected increase in prepayments can significantly
depress the price of interest-only securities, while a rapid or unexpected
decrease could have the same effect on principal-only securities. In addition,
these instruments may be illiquid.

While the principal and payments on certain of the Fund's portfolio securities
may be guaranteed, this does not mean that the market value of the security, or
the value of Fund shares, is guaranteed.

Certain securities which the Fund may hold, such as stripped obligations and
zero coupon securities, are more sensitive to changes in interest rates than
ordinary interest-paying securities.

<PAGE>

CHASE U.S. GOVERNMENT SECURITIES FUND

Some asset-backed securities may have additional risk because they may receive
little or no collateral protection from the underlying assets.

If the interest rate on floating and variable rate securities falls, the Fund's
yield may decline and it may lose the opportunity for capital appreciation.

Dollar rolls, forward commitments and repurchase agreements involve some risk to
the Fund if the other party does not live up to its part of the agreement.

Derivatives may be more risky than other types of investments and could cause
losses that exceed the Fund's original investment.

If the Fund temporarily departs from its investment policies to defend its
assets, it may not achieve its investment objectives.

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.

<PAGE>

THE FUND'S PAST PERFORMANCE

The Lehman Brothers Government Index consists of the Lehman Brothers Treasury
Bond Index and the Lehman Brothers Agency Bond Index. It includes Treasury bonds
and fixed income securities issued by the U.S. Government and its agencies.

Lipper General U.S. Government Funds Index represents performance of the 30
largest U.S. government securities funds.

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[bar chart goes here]

Horizontal axis: Year

1994 1995 1996 1997 1998

Vertical axis: Return (%)

- -8.39% 30.11% -1.89% 9.55% 9.28%

BEST QUARTER 10.36% 2nd quarter, 1995
WORST QUARTER -6.79% 1st quarter, 1996

AVERAGE ANNUAL TOTAL RETURNS
For the periods ending December 31, 1998

SINCE

PAST 1 PAST 5 INCEPTION
YEAR YEARS (4/1/93)

PREMIER CLASS SHARES 9.28% 6.96% 7.64%
LEHMAN BROS. GOV'T INDEX 9.85% 7.18% 7.28%
LIPPER GENERAL U.S. GOV'T

FUNDS INDEX 7.85% 6.02% 6.04%

<PAGE>

CHASE U.S. GOVERNMENT SECURITIES FUND

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

Shareholder fees (fees paid directly from your investment):

None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED
FROM FUND ASSETS)*

TOTAL
ANNUAL
FUND

MANAGEMENT DISTRIBUTION OTHER OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES

PREMIER CLASS SHARES 0.50% NONE 3.50% 4.00%

* The table is based on expenses incurred in the most recent fiscal year. The
actual Management fee is currently expected to be 0.00%, Other Expenses are
expected to be 0.75%, and Total annual Fund operating expenses are expected not
to exceed 0.75%. That's because The Chase Manhattan Bank (Chase) and some of the
Fund's other service providers have volunteered not to collect a portion of
their fees and to reimburse others. Chase and these other service providers may
end this arrangement at any time. The table does not reflect charges or credits
you might incur if you invest through a financial institution.

EXAMPLE

This example helps you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period
o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as
shown above.

Although your actual costs may higher or lower, based on the these assumptions:

YOUR COST WOULD BE:

NUMBER OF YEARS 1 3 5 10
COSTS $402 $1,218 $2,051 $4,206

<PAGE>

CHASE INTERMEDIATE TERM BOND FUND

THE FUND'S OBJECTIVE

The Fund aims to invest in securities that earn current income while also
considering stability of principal.

THE FUND'S MAIN INVESTMENT STRATEGY

The Fund seeks current income by investing primarily in fixed income securities.
Under normal market conditions, the Fund will invest at least 70% of its total
assets in bonds and notes of domestic and foreign issuers, U.S. Government
securities and mortgage-related securities .

To help reduce the risk of loss of principal, all of the Fund's investments in
debt securities will be investment grade, which means a rating of Baa or higher
by Moody's Investors Service, Inc., BBB or higher by Standard & Poor's
Corporation, or the equivalent by another national rating organization or
unrated securities of comparable quality. The Fund's investment in preferred
stock will be based on the adviser's judgment of the quality of the securities.

The average portfolio maturity of the Fund is between three and 10 years. When
the Fund purchases fixed income securities, they usually will have a maturity of
greater than one year. The Fund's adviser will adjust the maturity based on its
outlook for the economy.

<PAGE>

CHASE INTERMEDIATE TERM BOND FUND

another security of comparable quality and maturity to take advantage of what it
believes to be short-term differences in market values or yields.

The Fund may invest in mortgage-related securities issued by governmental
entities and private issuers. These may include investments in collateralized
mortgage obligations and principal-only and interest-only stripped
mortgage-backed securities.

The Fund may invest up to 30% of its total assets in foreign debt securities,
including Depositary Receipts. These investments may include debt securities
issued or guaranteed by foreign governments and international organizations such
as The World Bank.

To temporarily defend its assets during unusual market conditions, the Fund may
invest any portion of its assets in high quality money market instruments and
repurchase agreements.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs,
thus lowering performance, and increase your taxable dividends.

<PAGE>

THE MAIN INVESTMENT RISKS

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some specific risks of investing in the
Intermediate Term Bond Fund.

Certain securities which the Fund may hold, such as stripped obligations and
zero coupon securities, are more sensitive to changes in interest rates than
ordinary interest-paying securities.

Investments in foreign securities may be riskier than investments in the U.S.
They may be affected by political, social and economic instability. Some
securities may be harder to trade without incurring a loss and may be difficult
to convert into cash. There may be less public information available, differing
settlement procedures, or regulations and standards that don't match U.S.
standards. Some countries may nationalize or expropriate assets or impose
exchange controls. If the Fund were to invest in a security which is not
denominated in U.S. dollars, it also would be subject to currency exchange risk.

<PAGE>

CHASE INTERMEDIATE TERM BOND FUND

These risks increase when investing in issuers located in developing countries.

The Fund's performance will depend on the credit quality of its investments.
Securities which are rated Baa by Moody's or BBB by S&P may have fewer
protective provisions and are generally more risky than higher rated securities.
The issuer may have trouble making principal and interest payments when
difficult economic conditions exist.

Some asset-backed securities may have additional risk because they may receive
little or no collateral protection from the underlying assets.

If the interest rate on floating and variable rate securities falls, the Fund's
yield may decline and it may lose the opportunity for capital appreciation.

Dollar rolls, forward commitments and repurchase agreements involve some risk to
the Fund if the other party does not live up to its part of the agreement.

Derivatives may be more risky than other types of investments and could cause
losses that exceed the Fund's original investment.

If the Fund departs from its investment policies during temporary defensive
periods, it may not achieve its investment objective.

The Fund, like any business, could be affected if the computer systems on which
it relies fail to properly process information beginning January 1, 2000. The
Fund's advisers are updating their own systems and encouraging service provider
to do the same, but there's no guarantee these systems will work properly. Year
2000 problems could also hurt issuers whose securities the Fund holds or
securities markets generally.

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.

<PAGE>

THE FUND'S PAST PERFORMANCE

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund's Premier Class shares has varied from year to year.
This provides some indication of the risk of investing in the Fund. The table
shows the average annual return over the past year, five years and since
inception. It compares that performance to the Lehman Brothers Intermediate
Government/Corporate Index and the Lehman Brothers Aggregate Index.

The Lehman Brothers Intermediate Government/Corporate Index consists of U.S.
Treasury and agency securities, corporate and Yankee bonds with maturities of
1-10 years. The Lehman Brothers Aggregate Index consists of the Lehman Brothers
Government/Corporate Index U.S. Treasury and agency securities, corporate bonds
and mortgage-backed securities with maturities of 1-30 years.

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[bar chart goes here]

Horizontal axis: Year

1995 1996 1997 1998

Vertical axis: Return (%)

16.79% 1.86% 7.26% 7.63%

BEST QUARTER 5.99% 2nd quarter, 1995
WORST QUARTER -2.15% 1st quarter, 1996

<PAGE>

CHASE INTERMEDIATE TERM BOND FUND

AVERAGE ANNUAL TOTAL RETURNS
For the periods ending December 31, 1998

SINCE
PAST 1 INCEPTION

YEAR (10/3/94)

PREMIER CLASS SHARES 7.63% 7.64%
LEHMAN INTERMEDIATE GOV'T/CORP INDEX 8.44% 8.27%
LEHMAN AGGREGATE INDEX 8.69% 9.46%

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

Shareholder fees (fees paid directly from your investment):

None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED
FROM FUND ASSETS)*

TOTAL ANNUAL

FUND

MANAGEMENT DISTRIBUTION OTHER OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES

PREMIER CLASS SHARES 0.50% NONE 0.70% 1.20%

* The table is based on expenses incurred in the most recent fiscal year. The
actual Management fee is currently expected to be 0.05% and Total annual Fund
operating expenses are expected not to exceed 0.75%. That's because The Chase
Manhattan Bank (Chase) and some of the Fund's other service providers have
volunteered not to collect a portion of their fees and to reimburse others.
Chase and these other service providers may end this arrangement at any time.
The table does not reflect charges or credits you might incur if you invest
through a financial institution.

EXAMPLE

This example helps you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as
shown above.

Although your actual costs may higher or lower, based on the these assumptions:

YOUR COST WOULD BE:

NUMBER OF YEARS 1 3 5 10
COSTS $122 $381 $660 $1,455

<PAGE>

CHASE INCOME FUND

THE FUND'S OBJECTIVE

The Fund aims to invest in securities that earn a high level of current income,
while also considering safety of principal.

THE FUND'S MAIN INVESTMENT STRATEGY

The Fund seeks a high level of current income by investing in fixed income
securities. Under normal market conditions, the Fund will invest at least 70% of
its total assets in bonds and notes of domestic and foreign issuers, U.S.
Government securities and mortgage-related securities .

The average portfolio maturity of the Fund is between five and 15 years. When
the Fund purchases fixed income securities, they usually will have a maturity of
greater than one year. The Fund's adviser will adjust the maturity based on its
outlook for the economy.

<PAGE>

CHASE INCOME FUND

adviser may sell one security and buy another security of comparable quality and
maturity to take advantage of what it believes to be short-term differences in
market values or yields.

The Fund may invest up to 30% of its total assets in foreign securities,
including Depositary Receipts. These investments may include debt securities
issued or guaranteed by foreign governments and international organizations such
as The World Bank.

To temporarily defend its assets during unusual market conditions, the Fund may
invest any portion of its assets in high quality money market instruments and
repurchase agreements.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.

[LOGO]

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs,
thus lowering performance, and increase your taxable dividends.

<PAGE>

THE MAIN INVESTMENT RISKS

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some specific risks of investing in the Income
Fund.

Certain securities which the Fund may hold, such as stripped obligations and
zero coupon securities, are more sensitive to changes in interest rates than
ordinary interest-paying securities.

<PAGE>

CHASE INCOME FUND

denominated in U.S. dollars, it also would be subject to currency exchange risk.
These risks increase when investing in issuers located in developing countries.

Some asset-backed securities may have additional risk because they may receive
little or no collateral protection from the underlying assets.

If the interest rate on floating and variable rate securities falls, the Fund's
yield may decline and it may lose the opportunity for capital appreciation.

Dollar rolls, forward commitments and repurchase agreements involve some risk to
the Fund if the other party does not live up to its part of the agreement.

Derivatives may be more risky than other types of investments and could cause
losses that exceed the Fund's original investment.

If the Fund departs from its investment policies during temporary defensive
periods, it may not achieve its investment objective.

[LOGO]

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.

<PAGE>

THE FUND'S PAST PERFORMANCE

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund's Premier Class shares has varied from year to year.
This provides some indication of the risks of investing in the Fund. The table
shows the average annual return over the past year, five years and ten years. It
compares that performance to the Lehman Brothers Government/Corporate Index.

The Lehman Brothers Government/Corporate Index is an unmanaged index that
consists of U.S. Treasury and agency securities, and corporate and Yankee bonds
with maturities of 1-30 years.

Lipper Corporate Debt A Rated Funds Index represents performance of the largest
30 A rated corporate debt funds.

[LOGO]

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[GRAPH APPEARS HERE]

1989 10.37%
1990 6.60%
1991 13.73%
1992 5.13%
1993 10.18%
1994 -4.47%
1995 18.38%
1996 1.91%
1997 8.73%
1998 9.47%

BEST QUARTER 6.34%
2nd quarter, 1989

WORST QUARTER -3.38%
1st quarter, 1994

AVERAGE ANNUAL TOTAL RETURNS

For the periods ending December 31, 1998

PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

PREMIER CLASS SHARES 9.47% 6.52% 7.83%
LEHMAN GOV'T/CORP INDEX 9.47% 7.30% 9.33%
LIPPER CORPORATE DEBT A

RATED FUND INDEX 7.31% 6.61% 8.85%

<PAGE>

CHASE INCOME FUND

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

Shareholder fees (fees paid directly from your investment):

None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED
FROM FUND ASSETS)*

TOTAL ANNUAL

FUND

MANAGEMENT DISTRIBUTION OTHER OPERATING
FEE (12B-1 FEES) EXPENSES EXPENSES

PREMIER CLASS SHARES 0.50% NONE 0.42% 0.92%

* The table is based on expenses incurred in the most recent fiscal year. The
actual Management fee is currently expected to be 0.33%, Other Expenses are
expected to be 0.42% and Total annual Fund operating expenses are expected not
to exceed 0.75%. That's because The Chase Manhattan Bank (Chase) and some of the
Fund's other service providers have volunteered not to collect a portion of
their fees and to reimburse others. Chase and these other service providers may
end this arrangement at any time. The table does not reflect charges or credits
you might incur if you invest through a financial institution.

EXAMPLE

This example helps you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as
shown above.

Although your actual costs may higher or lower, based on the these assumptions:

YOUR COST WOULD BE:

NUMBER OF YEARS 1 3 5 10
COSTS $94 $293 $509 $1,131

<PAGE>

CHASE BALANCED FUND

THE FUND'S OBJECTIVE

The Fund aims to provide a balance of current income and growth of capital.

THE FUND'S MAIN INVESTMENT STRATEGY

The Fund seeks a balance of current income and growth by using the following
strategies:

o an active equity management style that focuses on strong earnings
momentum and profitability within the universe of growth-oriented
stocks, and

o an active fixed income management style that focuses primarily on
domestic fixed income securities.

The Fund's adviser may adjust the portion of the Fund's assets that are invested
in equity and fixed income securities depending on its analysis of general
market and economic conditions and trends, yields, interest rates and changes in
monetary policies.

The Fund seeks growth of capital by normally investing 30% to 70% of its total
assets in equity securities. The Fund invests primarily in companies with one or
more of the following characteristics:

o a projected rate of earnings growth that's equal to or greater than
the equity markets

o a return on assets and equity that's equal to or greater than the
equity markets

o above-average price/earnings ratios

o below-average dividend yield

o above-average market volatility

o a market capitalization of more than $500 million.

Market capitalization is the total market value of a company's shares. Equity
securities include common stocks and pre-

<PAGE>

CHASE BALANCED FUND

ferred stocks and securities that are convertible into common stocks.

The Fund will focus on companies with strong earnings growth and high
profitability levels. The Fund will also examine industry and company specific
characteristics. The Fund's equity portion will emphasize growth sectors of the
economy.

The Fund seeks current income by normally investing at least 25% of its total
assets in U.S. government securities and other fixed income securities,
including mortgage-backed securities. The Fund invests in fixed income
securities only if they are rated as investment grade or the adviser considers
them to be comparable to investment grade.

There is no restriction on the maturity of the Fund's debt portfolio or on any
individual security in the portfolio. The Fund's advisers will adjust the
maturity based on its outlook for the economy.

The Fund may invest up to 30% of its total assets in foreign securities,
including Depositary Receipts. Its equity investments may also include
convertible securities, which generally pay interest or dividends and which can
be converted into common or preferred stock.

The Fund's equity holdings may also include real estate investment trusts
(REITs), which are pools of investments primarily in income-producing real
estate or loans related to real estate.

The Fund may enter into "dollar rolls," in which the Fund sells mortgage-backed
securities and at the same time contracts to buy back very similar securities on
a future date. It may also buy asset-backed securities. These receive a stream
of income from a particular asset, such as credit card receivables.

The Fund may invest any portion of its assets that aren't in stocks or fixed
income securities in high quality money market instruments and repurchase
agreements. To temporarily defend its assets, the Fund may put any amount of its
assets in these types of investments.

The Fund may invest in derivatives, which are financial instruments whose value
is based on another security, index or exchange rate. The Fund may use
derivatives to hedge various market risks or to increase the Fund's income or
gain.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs,
thus lowering performance, and increase your taxable dividends.

<PAGE>

THE MAIN INVESTMENT RISKS

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some of the specific risks of investing in
Balanced Fund.

The value of shares of the Fund will be influenced by conditions in stock
markets as well as the performance of the companies selected for the Fund's
portfolio.

The securities of mid-capitalization companies may trade less frequently and in
smaller volumes than securities of larger, more established companies. As a
result, share price changes may be more sudden or more erratic. Mid-sized
companies may have limited product lines, markets or financial resources, and
they may depend on a small management group.

Investments in foreign securities may be riskier than investments in the U.S.
Because foreign securities are usually denominated in foreign currencies, the
value of the Fund's portfolio may be influenced by currency exchange rates and
exchange control regulations. Foreign securities may be affected by political,
social and economic instability. Some securities may be harder to trade without
incurring a loss and may be difficult to convert into cash. There may be less
public information available, differing settlement procedures, or regulations
and standards that don't match U.S. standards. Some countries may nationalize or
expropriate assets or impose exchange controls. These risks increase when
investing in issuers located in developing countries.

Unsponsored depositary receipts may not provide as much information about the
underlying issuer and may not carry the same voting privileges as sponsored
depositary receipts.

In early 1999, the European Monetary Union implemented a new currency called the
"euro." It is possible that the euro could increase volatility in financial
markets, which could have a negative effect on the strength and value of the
U.S. dollar and, as a result, the value of shares of the Fund.

The value of the Fund's fixed income securities tends to fall when prevailing
interest rates rise. Such a drop could be worse if the Fund invests a larger
portion of its assets in debt securities with longer maturities. That's because
long-term debt securities are more sensitive to interest rate changes than other
fixed income securities.

When the Fund invests in mortgage-related securities, the value of the Fund
could change more often and to a greater degree than if it did not buy
mortgage-related securities. That's because the prepayment features on some
mortgage-related securities make them more sensitive to interest rate changes.
Mortgage related securities are subject to scheduled and unscheduled principal
payments as property owners pay down or prepay their mortgages. As these
payments are received, they must be reinvested when interest rates may be higher
or lower than on the original mortgage security. When interest rates are rising,
the value of fixed-income securities with prepayment features are likely to
decrease as much or more than securities without prepayment features. In
addition, while the value of fixed-income securities will generally increase
when interest rates decline, the value of mortgage-related

<PAGE>

CHASE BALANCED FUND

securities with prepayment features may not increase as much as securities
without prepayment features.

The value of interest-only and principal-only mortgage backed securities are
more volatile than other types of mortgage-related securities. That's because
they are very sensitive not only to changes in interest rates , but also to the
rate of prepayments. A rapid or unexpected increase in prepayments can
significantly depress the price of interest-only securities, while a rapid or
unexpected decrease could have the same effect on principal-only securities. In
addition, these instruments may be illiquid.

Certain securities which the Fund may hold, such as stripped obligations and
zero coupon securities, are more sensitive to changes in interest rates than
ordinary interest-paying securities.

The Fund's performance will also depend on the credit quality of its
investments. Securities which are rated Baa by Moody's or BBB by S&P may have
fewer protective provisions and are generally more risky than higher rated
securities. The issuer may have trouble making principal and interest payments
when difficult economic conditions exist.

Some asset-backed securities may have additional risk because they may receive
little or no collateral protection from the underlying assets.

Because the interest rate changes on floating and variable rate securities, the
Fund's yield may decline and it may lose the opportunity for capital
appreciation when interest rates decline.

Dollar rolls, forward commitments and repurchase agreements involve some risk to
the Fund if the other party does not live up to its obligations under the
agreement.

The market value of convertible securities tends to decline as interest rates
increase. Their value also tends to change whenever the market value of the
underlying common or preferred stock fluctuates.

The value of REITs will depend on the value of the underlying properties or the
underlying loans or interest. The value of REITs may decline when interest rates
rise.

If the Fund invests a substantial portion of its assets in money market
instruments, repurchase agreements and U.S. Government obligations, including
where the Fund is investing for temporary defensive purposes, it could reduce
the Fund's potential return.

Derivatives may be more risky than other types of investments because they may
respond more to changes in economic conditions than other types of investments.
If they are used for non-hedging purposes, they could cause losses that exceed
the Fund's original investment.

<PAGE>

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.

THE FUND'S PAST PERFORMANCE

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund's Premier Class shares has varied from year to year.
This provides some indication of the risks of investing in the Fund. The table
shows the average annual return over the past year, five years and ten years. It
compares that performance to the S&P 500 Index and Lehman Brothers
Government/Corporate Index.

The S&P 500 Index is an unmanaged, broad-based index of 500 companies and is
generally considered to represent the U.S. market. The Lehman Brothers
Government/Corporate Index is an unmanaged index that consists of the Lehman
government and corporate bond indices, including U.S. Treasury and agency
securities, and corporate and Yankee bonds.

[LOGO]

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[GRAPH APPEARS HERE]

1989 18.26%
1990 1.34%
1991 24.16%
1992 5.32%
1993 6.01%
1994 -2.27%
1995 23.83%
1996 11.32%
1997 23.67%
1998 25.15%

BEST QUARTER 13.34%
4th quarter, 1998

WORST QUARTER -5.37%
3rd quarter, 1990

<PAGE>

CHASE BALANCED FUND

AVERAGE ANNUAL TOTAL RETURNS
For the periods ending December 31, 1998

PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

PREMIER CLASS SHARES 25.15% 15.82% 13.22%
S&P 500 INDEX 28.58% 24.06% 19.20%
LEHMAN BROS.

GOV'T/CORP INDEX 9.47% 7.30% 9.33%

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

Shareholder fees (fees paid directly from your investment):

None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED
FROM FUND ASSETS)*

TOTAL ANNUAL

FUND

MANAGEMENT DISTRIBUTION OTHER OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES

PREMIER CLASS SHARES 0.75% NONE 0.45% 1.20%

* The table is based on expenses incurred in the most recent fiscal year. The
actual Management fee is currently expected to be 0.55% and Total annual Fund
operating expenses are expected not to exceed 1.00%. That's because The Chase
Manhattan Bank (Chase) and some of the Fund's other service providers have
volunteered not to collect a portion of their fees and to reimburse others.
Chase and these other service providers may end this arrangement at any time.
The table does not reflect charges or credits you might incur if you invest
through a financial institution.

EXAMPLE

This example helps you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as
shown above.

Although your actual costs may be higher or lower, based on these assumptions:

YOUR COST WOULD BE:

NUMBER OF YEARS 1 3 5 10
COSTS $122 $381 $660 $1,455

<PAGE>

CHASE EQUITY INCOME FUND

THE FUND'S OBJECTIVE

The Fund aims to invest in securities that provide both capital appreciation and
current income.

THE FUND'S MAIN INVESTMENT STRATEGY

The Fund uses an active equity management style which focuses on both earnings
momentum and value within the universe of income-oriented stocks. The Fund
normally invests at least 70% of its total assets in equity securities.

The Fund seeks capital appreciation by targeting companies with attractive
earnings momentum. It seeks current income by emphasizing companies with
above-average dividend yield and a consistent dividend record. The Fund also
emphasizes securities of companies with below-average market volatility and
price/earnings ratios or a market capitalization of more than $500 million. The
Fund combines growth and value styles of investing.

The Fund may also invest in investment grade debt securities. When the adviser
wishes to limit the Fund's equity investments because of adverse market
conditions, the Fund may temporarily invest any amount in investment grade debt
securities. There is no restriction on the Fund's debt portfolio or on any
individual security in the portfolio.

<PAGE>

CHASE EQUITY INCOME FUND

The Fund's equity holdings may also include real estate investment trusts
(REITs), which are pools of investments primarily in income-producing real
estate or loans related to real estate.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs
(and lower performance) and increase your taxable dividends.

THE MAIN INVESTMENT RISKS

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some of the specific risks of investing in
Equity Income Fund.

The value of shares of the Fund will be influenced by conditions in stock
markets as well as the performance of the companies selected for the Fund's
portfolio.

<PAGE>

Unsponsored depositary receipts may not provide as much information about the
underlying issuer and may not carry the same voting privileges as sponsored
depositary receipts.

The market value of convertible securities and debt securities tends to decline
as interest rates increase. Such a drop could be worse if the Fund invests a
large portion of its assets in debt securities with longer maturities. The value
of convertible securities also tends to change whenever the market value of the
underlying common or preferred stock fluctuates.

The value of REITs will depend on the value of the underlying properties or the
underlying loans or interest. The value of REITs may decline when interest rates
rise.

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.

<PAGE>

CHASE EQUITY INCOME FUND

THE FUND'S PAST PERFORMANCE

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund's Premier Class shares has varied from year to year.
This provides some indication of the risks of investing in the Fund. The table
shows the average annual return over the past year, five years and ten years. It
compares that performance to the S&P 500 Index. The S&P 500 Index is an
unmanaged, broad-based index of 500 companies that is generally considered to
represent the U.S. market.

Lipper Equity Income Funds Index represents performance of the largest 30 equity
income funds.

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[GRAPH APPEARS HERE]

1989 22.50%
1990 -4.40%
1991 22.10%
1992 5.61%
1993 12.34%
1994 -3.37%
1995 33.72%
1996 17.87%
1997 31.05%
1998 26.20%

BEST QUARTER 17.04%
2nd quarter, 1997

WORST QUARTER -9.88%
3rd quarter, 1990

AVERAGE ANNUAL TOTAL RETURNS

For the periods ending December 31, 1998

PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

PREMIER CLASS SHARES 26.20% 20.28% 15.62%
S&P 500 INDEX 28.58% 24.06% 19.20%
LIPPER EQUITY INCOME INDEX 11.78% 16.62% 14.89%

<PAGE>

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

Shareholder fees (fees paid directly from your investment):

None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

TOTAL ANNUAL

FUND

MANAGEMENT DISTRIBUTION OTHER OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES

PREMIER CLASS SHARES 0.75% NONE 0.35% 1.10%

* The table is based on expenses incurred in the most recent fiscal year. The
actual Management fee is currently expected to be 0.65% and Total annual Fund
operating expenses are expected not to exceed 1.00%. That's because The Chase
Manhattan Bank (Chase) and some of the Fund's other service providers have
volunteered not to collect a portion of their fees and to reimburse others.
Chase and these other service providers may end this arrangement at any time.
The table does not reflect charges or credits you might incur if you invest
through a financial institution.

EXAMPLE

This example helps you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as
shown above.

Although your actual costs may higher or lower, based on the these assumptions:

YOUR COST WOULD BE:

NUMBER OF YEARS 1 3 5 10
COSTS $112 $350 $606 $1,340

<PAGE>

CHASE CORE EQUITY FUND

THE FUND'S OBJECTIVE

The Fund aims to maximize total investment return with an emphasis on long-term
capital appreciation and current income while taking reasonable risk.

THE FUND'S MAIN INVESTMENT STRATEGY

The Fund uses an active equity management style which focuses on strong earnings
momentum and profitability within the universe of S&P 500 stocks. The Fund
normally invests at least 70% of its total assets in equity securities.

The Fund seeks capital appreciation by emphasizing companies with a superior
record of earnings growth relative to the equity markets in general or a
projected rate of earnings growth that's greater than or equal to the equity
markets.

The Fund seeks to earn current income and manage risk by focusing on larger
companies with a stable record of earnings growth. In addition, it diversifies
its portfolio across all sectors of the S&P 500. The Fund also emphasizes
companies with return on assets and return on equity equal to or greater than
the equity markets.

The Fund may invest up to 30% of its total assets in foreign securities,
including Depositary Receipts. Its equity investments may include convertible
securities, which generally pay interest or dividends and which can be converted
into common or preferred stock.

<PAGE>

securities. There is no restriction on the Fund's debt portfolio or on any
individual security in the portfolio.

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs
(and lower performance) and increase your taxable dividends.

THE MAIN INVESTMENT RISKS

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some of the specific risks of investing in Core
Equity Fund.

The value of shares of the Fund will be influenced by conditions in stock
markets as well as the performance of the companies selected for the Fund's
portfolio.

Unsponsored depositary receipts may not provide as much information about the
underlying issuer and may not carry the same voting privileges as sponsored
depositary receipts.

In early 1999, the European Monetary Union implemented a new currency called the
"euro." It is possible that the euro could increase volatility in financial

<PAGE>

CHASE CORE EQUITY FUND

markets, which could have a negative effect on the strength and value of the
U.S. dollar and, as a result, the value of shares of the Fund.

The market value of convertible securities and debt securities tends to decline
as interest rates increase. Such a drop could be worse if the Fund invests a
larger portion of its assets in debt securities with longer maturities. The
value of convertible securities also tends to change whenever the market value
of the underlying common or preferred stock fluctuates.

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.

<PAGE>

THE FUND'S PAST PERFORMANCE

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund's Premier Class shares has varied from year to year.
This provides some indication of the risks of investing in the Fund. The table
shows the average annual return over the past year, five years and since
inception. It compares that performance to the S&P 500 Index. The S&P 500 Index
is an unmanaged, broad-based index of 500 companies and is generally considered
to represent the U.S. market.

Lipper Growth & Income Funds Index represents performance of the 30 largest
growth and income funds.

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[GRAPH APPEARS HERE]

1994 -4.03%
1995 25.53%
1996 22.54%
1997 33.33%
1998 30.95%

BEST QUARTER 22.97%
4th quarter, 1998

WORST QUARTER -9.55%
3rd quarter, 1998

AVERAGE ANNUAL TOTAL RETURNS

For the periods ending December 31, 1998

PAST 1 PAST 5 SINCE INCEPTION
YEAR YEARS (4/1/93)

PREMIER CLASS SHARES 30.95% 20.84% 19.46%
S&P 500 INDEX 28.58% 24.06% 21.73%
LIPPER GROWTH & INCOME

FUND INDEX 13.58% 17.83% 16.93%

<PAGE>

CHASE CORE EQUITY FUND

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

Shareholder fees (fees paid directly from your investment):

None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

TOTAL ANNUAL

FUND

MANAGEMENT DISTRIBUTION OTHER OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES

PREMIER CLASS SHARES 0.75% NONE 0.38% 1.13%

* The table is based on expenses incurred in the most recent fiscal year. The
actual Management fee is currently expected to be 0.62% and Total annual Fund
operating expenses are expected not to exceed 1.00%. That's because The Chase
Manhattan Bank (Chase) and some of the Fund's other service providers have
volunteered not to collect a portion of their fees and to reimburse others.
Chase and these other service providers may end this arrangement at any time.
The table does not reflect charges or credits you might incur if you invest
through a financial institution.

EXAMPLE

This example helps you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as
shown above.

Although your actual costs may higher or lower, based on the these assumptions:

YOUR COST WOULD BE:

NUMBER OF YEARS 1 3 5 10
COSTS $115 $359 $622 $1,375

<PAGE>

CHASE EQUITY GROWTH FUND

THE FUND'S OBJECTIVE

The Fund aims to provide capital appreciation. Producing current income is a
secondary objective.

THE FUND'S MAIN INVESTMENT STRATEGY

The Fund uses an active equity management style which focuses on strong earnings
momentum and profitability within the universe of growth-oriented stocks. The
Fund normally invests at least 70% of its total assets in equity securities.

The Fund seeks capital appreciation by emphasizing the growth sectors of the
economy. It looks for companies with one or more of the following
characteristics:

o a projected earnings growth rate that's greater than or equal to the
equity markets in general

o a return on assets and return on equity equal to or greater than the
equity markets

o above market average price-earnings ratios

o below-average dividend yield

o above-average market volatility

o a market capitalization of more than $500 million.

The Fund focuses on companies with strong earnings and high levels of
profitability as well as positive industry or company characteristics.

<PAGE>

CHASE EQUITY GROWTH FUND

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs
(and thus lower performance) and increase your taxable dividends.

THE MAIN INVESTMENT RISKS

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some of the specific risks of investing in
Equity Growth Fund.

The value of shares of the Fund will be influenced by conditions in stock
markets as well as the performance of the companies selected for the Fund's
portfolio.

<PAGE>

Unsponsored depositary receipts may not provide as much information about the
underlying issuer and may not carry the same voting privileges as sponsored
depositary receipts.

The Fund, like any business, could be affected if the computer systems on
which it relies fail to properly process information beginning January 1,
2000. The Fund's advisers are updating their own systems and encouraging
service providers to do the same, but there's no guarantee these systems
will work properly. Year 2000 problems could also hurt issuers whose
securities the Fund holds or securities markets generally.

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and
it isn't insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency.

<PAGE>

CHASE EQUITY GROWTH FUND

THE FUND'S PAST PERFORMANCE

This section shows the Fund's performance record. The bar chart shows how the
performance of the Fund's Premier Class shares has varied from year to year.
This provides some indication of the risks of investing in the Fund. The table
shows the average annual return over the past year, five years and ten years. It
compares that performance to the S&P 500 Index and the S&P Barra Growth Index.

The S&P 500 Index is an unmanaged, broad-based index of 500 companies and is
generally considered to represent the U.S. market. The S&P Barra Growth Index
includes S&P 500 Index securities that have high price-to-book ratios, low
dividend yields and high price/earnings ratios. It's a market-weighted index,
which means each stock affects the index in proportion to its market value.

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[GRAPH APPEARS HERE]

1989 25.73%
1990 -1.45%
1991 31.69%
1992 6.43%
1993 2.48%
1994 -0.90%
1995 25.78%
1996 20.52%
1997 37.20%
1998 41.38%

BEST QUARTER 27.40%
4th quarter, 1998

WORST QUARTER -15.53%
3rd quarter, 1998

AVERAGE ANNUAL TOTAL RETURNS
For the periods ending December 31, 1998

PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

PREMIER CLASS SHARES 41.38% 23.84% 17.88%
S&P 500 INDEX 28.58% 24.06% 19.20%
S&P BARRA GROWTH INDEX 42.16% 27.93% 21.35%

<PAGE>

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

Shareholder fees (fees paid directly from your investment):

None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

TOTAL ANNUAL

INVESTMENT FUND
ADVISORY DISTRIBUTION OTHER OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES

PREMIER CLASS SHARE 0.75% NONE 0.29% 1.04%

* The table is based on expenses incurred in the most recent fiscal year. The
actual Management fee is currently expected to be 0.71% and Total annual Fund
operating expenses are expected not to exceed 1.00%. That's because The Chase
Manhattan Bank (Chase) and some of the Fund's other service providers have
volunteered not to collect a portion of their fees and to reimburse others.
Chase and these other service providers may end this arrangement at any time.
The table does not reflect charges or credits you might incur if you invest
through a financial institution.

EXAMPLE

This example helps you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as
shown above.

Although your actual costs may higher or lower, based on the these assumptions:

YOUR COST WOULD BE:

NUMBER OF YEARS 1 3 5 10
COSTS $106 $331 $574 $1,271

<PAGE>

CHASE SMALL CAPITALIZATION FUND

THE FUND'S OBJECTIVE

The Fund aims to provide capital appreciation.

THE FUND'S MAIN INVESTMENT STRATEGY

The Fund seeks capital appreciation by using an active equity management style
that focuses on delivering risk and return characteristics representative of a
small capitalization asset class. The Fund normally invests at least 70% of its
total assets in equity-based securities of small cap issuers. It primarily
targets companies with market capitalizations of $100 million to $1 billion.

The Fund emphasizes companies with above market average price/earnings ratios
and price/book ratios, below-average dividend yield and above-average market
volatility. The Fund will focus on companies with high-quality management, a
leading or dominant position in a major product line, new or innovative
products, services or processes, a strong financial position and a relatively
high rate of return of invested capital so that they can finance future growth
without having to borrow extensively from outside sources. The adviser uses a
disciplined stock selection process which focuses on identifying attractively
valued companies with positive business fundamentals. The Fund combines growth
and value styles of investing.

<PAGE>

The Fund may change any of these investment policies (including its investment
objective) without shareholder approval.

FREQUENCY OF TRADING

The Fund may trade securities actively, which could increase transaction costs
(and lower performance) and increase your taxable dividends.

THE MAIN INVESTMENT RISKS

All mutual funds carry a certain amount of risk. You may lose money on your
investment in the Fund. Here are some of the specific risks of investing in
Small Capitalization Fund.

The value of shares of the Fund will be influenced by conditions in stock
markets as well as the performance of the companies selected for the Fund's
portfolio.

The securities of small cap companies may trade less frequently and in smaller
volumes than securities of larger, more established companies. As a result,
share price changes may be more sudden or more erratic. Smaller companies may
have limited product lines, markets or financial resources, and they may depend
on a small management group.

<PAGE>

CHASE SMALL CAPITALIZATION FUND

Unsponsored depositary receipts may not provide as much information about the
underlying issuer and may not carry the same voting privileges as sponsored
depositary receipts.

An investment in the Fund isn't a deposit of The Chase Manhattan Bank and it
isn't insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.

<PAGE>

THE FUND'S PAST PERFORMANCE

The S&P 500 is an unmanaged, broad-based index of 500 companies that is
generally considered to represent the U.S. market. The S&P 600 is an unmanaged
index of 600 small capitalization companies.

YEAR-BY-YEAR RETURNS

Past performance does not predict how this Fund will perform in the future.

[GRAPH APPEARS HERE]

1994 -6.12%
1995 31.14%
1996 30.88%
1997 24.08%
1998 -1.83%

AVERAGE ANNUAL TOTAL RETURNS
For the periods ending December 31, 1998

BEST QUARTER 17.04%
2nd quarter, 1997

WORST QUARTER -18.10%
3rd quarter, 1998

SINCE

PAST 1 PAST 5 INCEPTION
YEAR YEARS (4/1/93)

PREMIER CLASS SHARES -1.83% 14.43% 14.11%
S&P 500 INDEX 28.58% 24.06% 21.73%
S&P 600 INDEX -1.31% 13.23% 14.09%

<PAGE>

CHASE SMALL CAPITALIZATION FUND

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

Shareholder fees (fees paid directly from your investment):

None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)*

TOTAL ANNUAL

INVESTMENT FUND
ADVISORY DISTRIBUTION OTHER OPERATING
FEE (12B-1) FEES EXPENSES EXPENSES

PREMIER CLASS SHARES 0.75% NONE 0.48% 1.23%

* The table is based on expenses incurred in the most recent fiscal year. The
actual Management fee is currently expected to be 0.52% and Total annual Fund
operating expenses are expected not to exceed 1.00%. That's because The Chase
Manhattan Bank (Chase) and some of the Fund's other service providers have
volunteered not to collect a portion of their fees and to reimburse others.
Chase and these other service providers may end this arrangement at any time.
The table does not reflect charges or credits you might incur if you invest
through a financial institution.

EXAMPLE

This example helps you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. The example assumes:

o you invest $10,000

o you sell all your shares at the end of the period

o your investment has a 5% return each year, and

o the Fund's operating expenses are not waived and remain the same as
shown above.

Although your actual costs may higher or lower, based on the these assumptions:

YOUR COST WOULD BE

NUMBER OF YEARS 1 3 5 10
COSTS $125 $390 $676 $1,489

<PAGE>

FUND MANAGEMENT

THE INVESTMENT ADVISER

The Chase Manhattan Bank (Chase) is the investment adviser to the Fund. Chase is
a wholly owned subsidiary of The Chase Manhattan Corporation, a bank holding
company. Chase provides the Funds with investment advice and supervision. Chase
and its predecessors have more than a century of money management experience.
Chase is located at 270 Park Avenue, New York, New York 10017.

Chase is entitled to receive an annual fee for its services. The following chart
shows the maximum fee as a percentage of each Fund's average daily net assets:

FUND FEE

MONEY MARKET FUND 0.30%

SHORT-INTERMEDIATE
TERM U.S. GOVERNMENT

SECURITIES FUND 0.50%

U.S. GOVERNMENT
SECURITIES FUND 0.50%

INTERMEDIATE TERM
BOND FUND 0.50%

INCOME FUND 0.50%

BALANCED FUND 0.75%

EQUITY INCOME FUND 0.75%

CORE EQUITY FUND 0.75%

EQUITY GROWTH FUND 0.75%

SMALL CAPITALIZATION FUND 0.75%

Chase Bank of Texas, N.A. (Chase Texas) is the sub-adviser to the Funds. Chase
Texas is a wholly-owned subsidiary of The Chase Manhattan Corporation. It makes
the day-to-day investment decisions for the Funds.

Chase Texas is located at 712 Main Street, Houston, Texas 77002.

<PAGE>

FUND MANAGEMENT

THE PORTFOLIO MANAGERS

CHASE MONEY MARKET FUND

The portfolio manager is Guy Barba, a Senior Investment Officer at Chase Texas.
He has managed the portfolio since April of 1993. Mr. Barba has worked for Chase
Texas since 1988.

CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND

Mr. Barba has managed the portfolio since its inception on April 1, 1993.

CHASE U.S. GOVERNMENT SECURITIES FUND

The portfolio manager is John Miller, a Senior Investment Officer at Chase
Texas. He has managed the portfolio since June of 1995. Mr. Miller has worked
for Chase Texas since 1986.

CHASE INTERMEDIATE TERM BOND FUND

The portfolio manager is H. Mitchell Harper, a Senior Investment Officer at
Chase Texas. He has managed the portfolio since its inception on April 1, 1993.

Mr. Harper has worked for Chase Texas since 1987.

CHASE INCOME FUND

Mr. Miller has managed the portfolio since July of 1994.

CHASE BALANCED FUND

The portfolio managers are Henry Lartigue, the Chief Investment Officer at
Chase Texas, and Mr. Miller. Mr. Lartigue has managed the equity portion of the
portfolio since July of 1994. In the two years before coming to Chase Texas, he
was an independent registered investment adviser. Mr. Lartigue has worked for
Chase Texas since 1994. Mr. Miller has managed the fixed income portion of the
portfolio since July of 1994.

CHASE EQUITY INCOME FUND

The portfolio manager is Robert Heintz, a Senior Investment Officer at Chase
Texas. He has managed the portfolio since its inception on March 29, 1988. Mr.

Heintz has worked for Chase Texas since 1983.

CHASE CORE EQUITY FUND

Mr. Lartigue has managed the portfolio since January of 1996. Since January 1999
the funds have been co-managed with Jeff Phelps. Mr. Phelps has been a portfolio
manager for Chase Texas since 1997. Prior to that Mr. Phelps was employed by
Houston Industries.

CHASE EQUITY GROWTH FUND

Mr. Lartigue has managed the portfolio since July of 1994.

CHASE SMALL CAPITALIZATION FUND

The portfolio manager is Juliet Ellis, a Senior Investment Officer at Chase
Texas. She has managed the portfolio since September of 1993. Ms. Ellis has
worked at Chase Texas since 1987. Before becoming portfolio manager for the
Small Capitalization Fund, Ms. Ellis was the director of research and an equity
analyst at Chase Texas.

<PAGE>

HOW YOUR ACCOUNT WORKS

BUYING FUND SHARES

There is no commission or sales charge to buy Premier Class shares. You can buy
shares through financial service firms, such as broker-dealers and banks, if
they have an agreement with the Funds' distributor. Your financial service firm
is responsible for promptly forwarding your order to the Chase Funds Service
Center.

MINIMUM INVESTMENTS

The minimum initial investment is $1 million. There is no minimum for subsequent
investments. Your financial service firm must maintain an average account
balance of at least $1 million in Premier shares of a Fund at all times. Your
financial service firm may set its own minimum investment for initial and
subsequent investments.

INVESTMENT DETAILS

The price of the shares is the net asset value per share (NAV). NAV is the value
of everything a Fund owns, minus everything it owes, divided by the number of
shares held by investors. You'll pay the next NAV calculated after your
financial service firm receives your instructions, provided that the order is
received by the Chase Funds Service Center before it closes for business that
day. Each Fund calculates its NAV once each day at the close of regular trading
on the New York Stock Exchange.

Each Fund other than the Money Market Fund generally values its assets at their
market value but may use fair value if market prices are unavailable. The Money
Market Fund seeks to maintain a stable NAV of $1.00. It uses the amortized cost
method to value its portfolio of securities. This method provides more stability
in valuations. However, it may also result in periods during which the stated
value of a security is different than the price the Fund would receive if it
sold the investment.

Your financial service firm will not accept your order until it is in proper
form. An order is in proper form only after payment is converted into federal
funds.

You can buy shares on any business day that the New York Stock Exchange and the
Federal Reserve Bank of New York are open.

You must provide a Taxpayer Identification Number or Social Security Number when
you open an account. The Funds reserve the right to refuse any purchase order or
to stop offering shares for sale at any time.

<PAGE>

HOW YOUR ACCOUNT WORKS

SELLING FUND SHARES

There is no commission or charge to sell Premier Class shares of the Funds.

You can sell your shares on any day that the Funds are accepting purchase
orders. Your financial service firm will forward your order to the Chase Funds
Service Center. Your financial service firm will be responsible for sending the
Funds all the documentation that they need, and your firm might charge you for
this service. You'll receive the next NAV calculated after the Chase Funds
Service Center receives your order in proper form.

Under normal circumstances, if the Chase Funds Service Center receives your
order before the close of regular trading on the New York Stock Exchange, each
Fund will send your financial service firm the proceeds the next business day.
Under unusual circumstances, each Fund may stop accepting orders to sell and may
postpone payments for more than seven days, as federal securities laws permit.

EXCHANGING FUND SHARES

You can exchange your shares for Premier shares of other Chase Funds at net
asset value, if your financial service firm allows exchanges. To exchange
shares, contact your financial service firm. You should carefully read the
prospectus of the Fund you want to change to before making any exchanges.

OTHER INFORMATION CONCERNING THE FUNDS

If you have authorized your financial service firm to act upon instructions
received by phone and the firm fails to take reasonable steps to confirm that
the instructions are genuine, it may be liable for any losses due to
unauthorized or fraudulent instructions. You agree that you will not hold a
Fund, your financial service firm or their agents liable for any loss or
expenses from any sales request, including a fraudulent or unauthorized request,
if the financial service firm has taken reasonable precautions.

For shareholders that bank with Chase, Chase may aggregate investments in the
Chase Funds with balances held in Chase bank accounts for purposes of
determining eligibility for certain bank privileges that are based on specified
minimum balance requirements, such as reduced or no fees for certain banking
services or preferred rates on loans and deposits. Chase and certain other
financial institutions may, at their own expense, provide gifts, such as
computer software packages, guides and books related to investment or additional
Fund shares valued up to $250 to their customers that invest in the Chase Funds.

<PAGE>

DISTRIBUTION ARRANGEMENTS

The Funds' distributor is CFD Fund Distributors Inc., which we call CFD in this
prospectus. CFD is a subsidiary of The BISYS Group, Inc. and is not affiliated
with Chase.

Each Fund may issue multiple classes of shares. This prospectus relates only to
Premier Class shares of the Funds. Each class may have different requirements
for who may invest, and may have different sales charges and expense levels. A
person who gets compensated for selling Fund shares may receive a different
amount for each class.

Chase and its affiliates and the Funds and their affiliates, agents and
sub-agents may share information about shareholders and their accounts with each
other and with others unless this sharing is prohibited by contract. The
information can be used for a variety of purposes, including offering investment
and insurance products to shareholders.

DISTRIBUTIONS AND TAXES

The Funds can earn income and they can realize capital gains. The Funds deduct
any expenses and pay these earnings out to shareholders as distributions.

The Chase Money Market Fund declares dividends daily, so your shares can start
earning dividends on the day you buy them. We distribute the dividends monthly.
We distribute any short-term capital gain at least annually. The Chase Money
Market Fund does not expect to realize long-term capital gain.

The Chase Short-Intermediate Term U.S. Government Securities Fund, Chase U.S.
Government Securities Fund, Chase Intermediate Term Bond Fund and Chase Income
Fund (the Fixed Income Funds) declare dividends daily and distribute the net
investment income monthly. The Chase Balanced Fund, Chase Equity Income Fund,
Chase Core Equity Fund, Chase Equity Growth Fund and Chase Small Capitalization
Fund distribute any net investment income at least quarterly. Net capital gain
is distributed at least annually.

<PAGE>

HOW YOUR ACCOUNT WORKS

You have three options for your distributions if your financial services firm
offers them. You may:

o reinvest all of them in additional Fund shares;

o take distributions of net investment income in cash or as a deposit in a
pre-assigned bank account and reinvest distributions of net capital gain in
additional shares; or

o take all distributions in cash or as a deposit in a pre-assigned bank
account.

If you don't select an option when you open your account, we'll reinvest all
distributions. If we reinvest your distributions, they will be in the same class
of shares. The taxation of dividends won't be affected by the form in which you
receive them.

Dividends of net investment income are usually taxable as ordinary income at the
federal, state and local levels. The state or municipality where you live may
not charge you state and local taxes on dividends earned on certain bonds.
Dividends earned on bonds issued by the U.S. government and its agencies may
also be exempt from some types of state and local taxes.

If you receive distributions of net capital gain, the tax rate will be based on
how long the Fund held a particular asset, not on how long you have owned your
shares. If you buy shares just before a distribution, you will pay tax on the
entire amount of the taxable distribution you receive, even though the NAV will
be higher on that date because it includes the distribution amount.

The Fixed Income Funds, the Chase Balanced Fund and Chase Equity Income Fund
expect that their distributions will consist primarily of ordinary income. The
Chase Core Equity Fund, Chase Equity Growth Fund and Chase Small Capitalization
Fund expect that their distributions will consist primarily of capital gains.

Early in each calendar year, each Fund will send you a notice showing the amount
of distributions you received in the preceding year and the tax status of those
distributions.

For tax purposes, an exchange is treated as selling Fund shares. This will
generally result in a capital gain or loss to you.

The above is a general summary of tax implications of investing in the Funds.
Please consult your tax adviser to see how investing in a Fund will affect your
own tax situation.

<PAGE>

FINANCIAL HIGHLIGHTS

CHASE MONEY MARKET FUND

The Financial Highlights table is intended to help you understand the Fund's
financial performance for the periods for the past five years. The total returns
in the table represent the rate an investor would have earned or lost on an
investment in the Fund (assuming reinvestment of all dividends and
distributions).

The table set forth below provides selected per share data and ratios for one
unit of the Predecessor Fund for the periods prior to January 1, 1998 and one
Premier share of the Fund for the period since conversion.

This information is supplemented by financial statements including accompanying
notes appearing in the Fund's Annual Report to Shareholders for the year ended
December 31, 1998, which is incorporated by reference into the SAI. Shareholders
may obtain a copy of this annual report by contacting the Fund or their
Shareholder Servicing Agent.

The financial statements, which include the financial information set forth
below, have been audited by PricewaterhouseCoopers LLP, independent accountants,
whose report thereon is included in the Annual Report to Shareholders.

Premier Shares

--------------------------------------------------
For the Years Ended December 31,

--------------------------------------------------
1998 1997 1996 1995 1994
PER SHARE OPERATING PERFORMANCE:

- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------
Income from Investment Operations:

Net Investment Income 0.05 0.05 0.05 0.05 0.04
Net Gains or Losses in Securities
(both realized and unrealized) -- -- -- -- --
- ---------------------------------------------------------------------------------------
Total from Investment Operations 0.05 0.05 0.05 0.05 0.04
- ---------------------------------------------------------------------------------------
Less Distributions:
Dividends from Net Investment

Income 0.05 0.05 0.05 0.05 0.04
Distributions from Capital Gains -- -- -- -- --
- ---------------------------------------------------------------------------------------
Total Distributions 0.05 0.05 0.05 0.05 0.04
- ---------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------
Total Return 5.20% 5.18% 5.06% 5.57% 3.77%
- ---------------------------------------------------------------------------------------

RATIOS/SUPPLEMENTAL DATA:

- ---------------------------------------------------------------------------------------
Net Assets, End of Period

(000 omitted) $195,476 $134,579 $119,106 $71,310 $55,505
- ---------------------------------------------------------------------------------------
Ratios to Average Net Assets:

Expenses 0.50% 0.50% 0.50% 0.50% 0.50%
Net Investment Income 5.07% 5.09% 4.93% 5.43% 3.90%
Expenses Without Waivers
and Assumption of Expenses 0.60% 0.74% 0.72% 0.72% 0.83%
Net Investment Income Without
Waivers and Assumption of

Expenses 4.97% 4.85% 4.71% 5.21% 3.57%
- ---------------------------------------------------------------------------------------
</TABLE>

<PAGE>

FINANCIAL HIGHLIGHTS

CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND

Premier Shares

--------------------------------------------------
For the Years Ended December 31,

--------------------------------------------------
1998 1997 1996 1995 1994
PER SHARE OPERATING PERFORMANCE:

- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 12.39 $ 11.66 $ 11.35 $ 10.14 $ 10.24

- ---------------------------------------------------------------------------------------
Income from Investment Operations:

Net Investment Income 0.63 0.67 0.60 0.58 0.45
Net Gains or Losses in Securities
(both realized and unrealized) 0.25 0.06 (0.29) 0.63 (0.55)
- ---------------------------------------------------------------------------------------
Total from Investment Operations 0.88 0.73 0.31 1.21 (0.10)
- ---------------------------------------------------------------------------------------
Less Distributions:
Dividends from Net Investment

Income 0.63 -- -- -- --
Distributions from Capital Gains 0.04 -- -- -- --
- ---------------------------------------------------------------------------------------
Total Distributions 0.67 -- -- -- --
- ---------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 12.60 $ 12.39 $ 11.66 $ 11.35 $ 10.14
- ---------------------------------------------------------------------------------------
Total Return 7.35% 6.30% 2.68% 12.01% (1.05)%
- ---------------------------------------------------------------------------------------

RATIOS/SUPPLEMENTAL DATA:

- ---------------------------------------------------------------------------------------
Net Assets, End of Period

(000 omitted) $30,554 $23,948 $28,551 $28,783 $22,992
- ---------------------------------------------------------------------------------------
Ratios to Average Net Assets:

Expenses 0.75% 0.75% 0.75% 0.75% 0.75%
Net Investment Income 5.06% 5.40% 5.26% 5.38% 4.41%
Expenses Without Waivers
and Assumption of Expenses 1.12% 1.01% 0.88% 0.91% 0.96%
Net Investment Income Without
Waivers and Assumption of

Expenses 4.69% 5.14% 5.13% 5.22% 4.20%
- ---------------------------------------------------------------------------------------
Portfolio Turnover Rate 87% 63% 177% 187% 268%
- ---------------------------------------------------------------------------------------
</TABLE>

<PAGE>

CHASE U.S. GOVERNMENT SECURITIES FUND

Premier Shares

--------------------------------------------------
For the Years Ended December 31,

--------------------------------------------------
1998 1997 1996 1995 1994
PER SHARE OPERATING PERFORMANCE:

- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 13.98 $ 12.76 $ 13.01 $ 10.00 $ 10.91

- ---------------------------------------------------------------------------------------
Income from Investment Operations:

Net Investment Income 0.72 0.75 0.74 0.73 0.62
Net Gains or Losses in Securities
(both realized and unrealized) 0.54 0.47 (0.99) 2.28 (1.53)
- ---------------------------------------------------------------------------------------
Total from Investment Operations 1.26 1.22 (0.25) 3.01 (0.91)
- ---------------------------------------------------------------------------------------
Less Distributions:
Dividends from Net Investment

Income 0.72 -- -- -- --
Distributions from Capital Gains 0.68 -- -- -- --
In Excess of Realized Capital Gains 0.01 -- -- -- --
- ---------------------------------------------------------------------------------------
Total Distributions 1.41 -- -- -- --
- ---------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 13.83 $ 13.98 $ 12.76 $ 13.01 $ 10.00
- ---------------------------------------------------------------------------------------
Total Return 9.28% 9.55% (1.89)% 30.11% (8.39)%
- ---------------------------------------------------------------------------------------

RATIOS/SUPPLEMENTAL DATA:

- ---------------------------------------------------------------------------------------
Net Assets, End of Period

(000 omitted) $ 3,624 $ 2,928 $ 2,746 $ 2,877 $ 2,628
- ---------------------------------------------------------------------------------------
Ratios to Average Net Assets:

Expenses 0.75% 0.75% 0.75% 0.75% 0.75%
Net Investment Income 5.07% 5.73% 6.01% 6.38% 6.23%
Expenses Without Waivers
and Assumption of Expenses 1.45% 3.15% 2.09% 2.22% 2.38%
Net Investment Income Without
Waivers and Assumption of

Expenses 4.37% 3.33% 4.67% 4.91% 4.60%
- ---------------------------------------------------------------------------------------
Portfolio Turnover Rate 110% 87% 48% 17% 174%
- ---------------------------------------------------------------------------------------
</TABLE>

<PAGE>

FINANCIAL HIGHLIGHTS

CHASE INTERMEDIATE TERM BOND FUND

The Financial Highlights table is intended to help you understand the Fund's
financial performance for the periods since shares were first offered. The total
returns in the table represent the rate an investor would have earned or lost on
an investment in the Fund (assuming reinvestment of all dividends and
distributions).

Premier Shares

--------------------------------------------------
For the Years Ended December 31, 10/03/94*

--------------------------------------------------
Through

1998 1997 1996 1995 1994
PER SHARE OPERATING PERFORMANCE:

- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 12.75 $ 11.89 $ 11.67 $ 9.99 $ 10.00

- ---------------------------------------------------------------------------------------
Income from Investment Operations:

Net Investment Income 0.68 0.56 0.61 0.64 0.15
Net Gains or Losses in Securities
(both realized and unrealized) 0.27 0.30 (0.39) 1.04 (0.16)
- ---------------------------------------------------------------------------------------
Total from Investment Operations 0.95 0.86 0.22 1.68 (0.01)
- ---------------------------------------------------------------------------------------
Less Distributions:
Dividends from Net Investment

Income 0.68 -- -- -- --
Distributions from Capital Gains 0.15 -- -- -- --
- ---------------------------------------------------------------------------------------
Total Distributions 0.83 -- -- -- --
- ---------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 12.87 $ 12.75 $ 11.89 $ 11.67 $ 9.99
- ---------------------------------------------------------------------------------------
Total Return 7.63% 7.26% 1.86% 16.79% (0.32)%
- ---------------------------------------------------------------------------------------

RATIOS/SUPPLEMENTAL DATA:

- ---------------------------------------------------------------------------------------
Net Assets, End of Period

(000 omitted) $ 32,870 $ 18,595 $ 6,949 $ 5,031 $ 5,124
- ---------------------------------------------------------------------------------------
Ratios to Average Net Assets:

Expenses 0.75% 0.75% 0.75% 0.75% 0.75%
Net Investment Income 5.25% 5.61% 5.32% 5.89% 6.12%
Expenses Without Waivers
and Assumption of Expenses 1.27% 1.25% 1.42% 1.43% 1.38%
Net Investment Income Without
Waivers and Assumption of

Expenses 4.73% 5.11% 4.65% 5.21% 5.49%
- ---------------------------------------------------------------------------------------
Portfolio Turnover Rate 135% 14% 134% 198% 7%
- ---------------------------------------------------------------------------------------
</TABLE>
* Commencement of operation.

<PAGE>

CHASE INCOME FUND

Premier Shares

--------------------------------------------------
For the Years Ended December 31,

--------------------------------------------------
1998 1997 1996 1995 1994
PER SHARE OPERATING PERFORMANCE:

- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 20.18 $ 18.56 $ 18.21 $ 15.39 $ 16.11

- ---------------------------------------------------------------------------------------
Income from Investment Operations:

Net Investment Income 1.09 1.14 1.00 0.97 0.84
Net Gains or Losses in Securities
(both realized and unrealized) 0.77 0.48 (0.65) 1.85 (1.56)
- ---------------------------------------------------------------------------------------
Total from Investment Operations 1.86 1.62 0.35 2.82 (0.72)
- ---------------------------------------------------------------------------------------
Less Distributions:
Dividends from Net Investment

Income 1.09 -- -- -- --
Distributions from Capital Gains 0.48 -- -- -- --
- ---------------------------------------------------------------------------------------
Total Distributions 1.57 -- -- -- --
- ---------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 20.47 $ 20.18 $ 18.56 $ 18.21 $ 15.39
- ---------------------------------------------------------------------------------------
Total Return 9.47% 8.73% 1.91% 18.38% (4.47)%
- ---------------------------------------------------------------------------------------

RATIOS/SUPPLEMENTAL DATA:

- ---------------------------------------------------------------------------------------
Net Assets, End of Period

(000 omitted) $ 60,068 $ 51,329 $53,614 $ 57,452 $52,235
- ---------------------------------------------------------------------------------------
Ratios to Average Net Assets:

Expenses 0.75% 0.75% 0.75% 0.75% 0.75%
Net Investment Income 5.28% 5.82% 5.58% 5.77% 5.43%
Expenses Without Waivers and
Assumption of Expenses 0.94% 1.14% 1.07% 1.08% 1.07%
Net Investment Income Without Waivers
and Assumption of Expenses 5.09% 5.43% 5.26% 5.44% 5.11%
- ---------------------------------------------------------------------------------------
Portfolio Turnover Rate 54% 97% 72% 93% 239%
- ---------------------------------------------------------------------------------------
</TABLE>

<PAGE>

FINANCIAL HIGHLIGHTS

CHASE BALANCED FUND

Premier Shares

--------------------------------------------------
For the Years Ended December 31,

--------------------------------------------------
1998 1997 1996 1995 1994
PER SHARE OPERATING PERFORMANCE:

- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 29.26 $ 23.66 $ 21.25 $ 17.16 $ 17.56

- ---------------------------------------------------------------------------------------
Income from Investment Operations:

Net Investment Income 0.73 0.74 0.63 0.57 0.46
Net Gains or Losses in Securities
(both realized and unrealized) 6.53 4.86 1.78 3.52 (0.86)
- ---------------------------------------------------------------------------------------
Total from Investment Operations 7.26 5.60 2.41 4.09 (0.40)
- ---------------------------------------------------------------------------------------
Less Distributions:
Dividends from Net Investment

Income 0.73 -- -- -- --
Distributions from Capital Gains 1.25 -- -- -- --
- ---------------------------------------------------------------------------------------
Total Distributions 1.98 -- -- -- --
- ---------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 34.54 $ 29.26 $23.66 $21.25 $ 17.16
- ---------------------------------------------------------------------------------------
Total Return 25.15% 23.67% 11.31% 23.83% (2.27)%
- ---------------------------------------------------------------------------------------

RATIOS/SUPPLEMENTAL DATA:

- ---------------------------------------------------------------------------------------

Net Assets, End of Period

(000 omitted) $59,014 $36,359 $22,631 $21,471 $22,802
- ---------------------------------------------------------------------------------------
Ratios to Average Net Assets:

Expenses 1.00% 1.00% 1.00% 1.00% 1.00%
Net Investment Income 2.32% 2.73% 2.82% 2.94% 2.69%
Expenses Without Waivers
and Assumption of Expenses 1.28% 1.28% 1.17% 1.17% 1.17%
Net Investment Income Without
Waivers and Assumption of

Expenses 2.04% 2.45% 2.65% 2.77% 2.52%
- ---------------------------------------------------------------------------------------
Portfolio Turnover Rate 58% 64% 70% 98% 157%
- ---------------------------------------------------------------------------------------
</TABLE>

<PAGE>

CHASE EQUITY INCOME FUND

Premier Shares

--------------------------------------------------
For the Years Ended December 31,

--------------------------------------------------
1998 1997 1996 1995 1994
PER SHARE OPERATING PERFORMANCE:

- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 36.97 $ 28.21 $ 23.93 $ 17.90 $ 18.52

- ---------------------------------------------------------------------------------------
Income from Investment Operations:

Net Investment Income 0.33 0.40 0.43 0.44 0.39
Net Gains or Losses in Securities
(both realized and unrealized) 9.32 8.36 3.85 5.59 (1.01)
- ---------------------------------------------------------------------------------------
Total from Investment Operations 9.65 8.76 4.28 6.03 (0.62)
- ---------------------------------------------------------------------------------------
Less Distributions:
Dividends from Net Investment

Income 0.34 -- -- -- --
Distributions from Capital Gains 0.14 -- -- -- --
- ---------------------------------------------------------------------------------------
Total Distributions 0.48 -- -- -- --
- ---------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 46.14 $ 36.97 $ 28.21 $ 23.93 $ 17.90
- ---------------------------------------------------------------------------------------
Total Return 26.20% 31.50% 17.87% 33.72% (3.37)%
- ---------------------------------------------------------------------------------------

RATIOS/SUPPLEMENTAL DATA:

- ---------------------------------------------------------------------------------------
Net Assets, End of Period

(000 omitted) $127,838 $ 75,243 $ 63,390 $54,985 $39,296
- ---------------------------------------------------------------------------------------
Ratios to Average Net Assets:

Expenses 1.00% 1.00% 1.00% 1.00% 1.00%
Net Investment Income 0.82% 1.67% 1.67% 2.10% 2.13%
Expenses Without Waivers
and Assumption of Expenses 1.10% 1.11% 1.07% 1.09% 1.12%
Net Investment Income Without
Waivers and Assumption of

Expenses 0.72% 1.56% 1.60% 2.01% 2.01%
- ---------------------------------------------------------------------------------------
Portfolio Turnover Rate 3% 14% 24% 11% 42%
- ---------------------------------------------------------------------------------------
</TABLE>

<PAGE>

FINANCIAL HIGHLIGHTS

CHASE CORE EQUITY FUND

Premier Shares

--------------------------------------------------
For the Years Ended December 31,

--------------------------------------------------
1998 1997 1996 1995 1994
PER SHARE OPERATING PERFORMANCE:

- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 21.25 $ 15.94 $ 13.01 $ 10.36 $ 10.80

- ---------------------------------------------------------------------------------------
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)
- ---------------------------------------------------------------------------------------
Total from Investment Operations 6.53 5.31 2.93 2.65 (0.44)
- ---------------------------------------------------------------------------------------
Less Distributions:
Dividends from Net Investment

Income 0.09 -- -- -- --
Distributions from Capital Gains 1.17 -- -- -- --
- ---------------------------------------------------------------------------------------
Total Distributions 1.26 -- -- -- --
- ---------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 26.52 $ 21.25 $ 15.94 $ 13.01 $ 10.36
- ---------------------------------------------------------------------------------------
Total Return 30.95% 33.33% 22.54% 25.53% (4.03)%
- ---------------------------------------------------------------------------------------

RATIOS/SUPPLEMENTAL DATA:

- ---------------------------------------------------------------------------------------
Net Assets, End of Period

(000 omitted) $ 88,536 $ 51,398 $ 28,584 $24,367 $21,035
- ---------------------------------------------------------------------------------------
Ratios to Average Net Assets:

Expenses 1.00% 1.00% 1.00% 1.00% 1.00%
Net Investment Income 0.39% 0.74% 1.10% 1.44% 1.68%
Expenses Without Waivers
and Assumption of Expenses 1.18% 1.20% 1.14% 1.17% 1.27%
Net Investment Income Without
Waivers and Assumption of Expenses 0.21% 0.54% 0.96% 1.27% 1.41%
- ---------------------------------------------------------------------------------------
Portfolio Turnover Rate 32% 24% 29% 133% 129%
- ---------------------------------------------------------------------------------------
</TABLE>

<PAGE>

CHASE EQUITY GROWTH FUND

Premier Shares

--------------------------------------------------
For the Years Ended December 31,

--------------------------------------------------
1998 1997 1996 1995 1994
PER SHARE OPERATING PERFORMANCE:

- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 38.36 $ 27.95 $ 23.20 $ 18.44 $ 18.61

- ---------------------------------------------------------------------------------------
Income from Investment Operations:

Net Investment Income 0.03 0.07 0.10 0.17 0.20
Net Gains or Losses in Securities
(both realized and unrealized) 15.78 10.34 4.65 4.59 (0.37)
- ---------------------------------------------------------------------------------------
Total from Investment Operations 15.81 10.41 4.75 4.76 (0.17)
- ---------------------------------------------------------------------------------------
Less Distributions:
Dividends from Net Investment

Income 0.03 -- -- -- --
Distributions from Capital Gains 1.78 -- -- -- --
- ---------------------------------------------------------------------------------------
Total Distributions 1.81 -- -- -- --
- ---------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 52.36 $ 38.36 $ 27.95 23.20 $ 18.44
- ---------------------------------------------------------------------------------------
Total Return 41.38% 37.20% 20.52% 25.78% (0.90)%
- ---------------------------------------------------------------------------------------

RATIOS/SUPPLEMENTAL DATA:

- ---------------------------------------------------------------------------------------
Net Assets, End of Period

(000 omitted) $178,956 $ 73,730 $ 57,328 $ 45,578 $36,683
- ---------------------------------------------------------------------------------------
Ratios to Average Net Assets:

Expenses 1.00% 1.00% 1.00% 1.00% 1.00%
Net Investment Income 0.05% 0.20% 0.41% 0.78% 1.07%
Expenses Without Waivers
and Assumption of Expenses 1.09% 1.11% 1.08% 1.10% 1.17%
Net Investment Income Without
Waivers and Assumption of Expenses (0.04%) 0.09% 0.33% 0.68% 0.90%
- ---------------------------------------------------------------------------------------
Portfolio Turnover Rate 35% 35% 62% 99% 116%
- ---------------------------------------------------------------------------------------
</TABLE>

<PAGE>

FINANCIAL HIGHLIGHTS

CHASE SMALL CAPITALIZATION FUND

Premier Shares

--------------------------------------------------
For the Years Ended December 31,

--------------------------------------------------
1998 1997 1996 1995 1994
PER SHARE OPERATING PERFORMANCE:

- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 21.78 $ 17.55 $ 13.41 $ 10.23 $ 10.89

- ---------------------------------------------------------------------------------------
Income from Investment Operations:

Net Investment Income (0.01) 0.02 0.01 0.05 0.06
Net Gains or Losses in Securities
(both realized and unrealized) (0.46) 4.21 4.13 3.13 (0.72)
- ---------------------------------------------------------------------------------------
Total from Investment Operations (0.47) 4.23 4.14 3.18 (0.66)
- ---------------------------------------------------------------------------------------
Less Distributions:
Dividends from Net Investment

Income -- -- -- -- --
Distributions from Capital Gains 0.71 -- -- -- --
In Excess of Net Realized Gain
on Investment 0.64 -- -- -- --
- ---------------------------------------------------------------------------------------
Total Distributions 1.35 -- -- -- --
- ---------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 19.96 $ 21.78 $17.55 $13.41 $ 10.23
- ---------------------------------------------------------------------------------------
TOTAL RETURN (1.83)% 24.08% 30.88% 31.14% (6.12)%
- ---------------------------------------------------------------------------------------

RATIOS/SUPPLEMENTAL DATA:

- ---------------------------------------------------------------------------------------
Net Assets, End of Period

(000 omitted) $64,742 $40,028 $20,750 $12,848 $ 9,267
- ---------------------------------------------------------------------------------------
Ratios to Average Net Assets:

Expenses 1.00% 1.00% 1.22% 1.35% 1.45%
Net Investment Income (0.03)% 0.13% 0.04% 0.46% 0.55%
Expenses Without Waivers
and Assumption of Expenses 1.26% 1.40% 1.37% 1.50% 1.60%
Net Investment Income Without
Waivers and Assumption of

Expenses (0.29)% (0.27)% (0.11)% 0.31% 0.40%
- ---------------------------------------------------------------------------------------
Portfolio Turnover Rate 45% 43% 68% 89% 120%
- ---------------------------------------------------------------------------------------
</TABLE>

<PAGE>

WHAT THE TERMS MEAN

COLLATERALIZED MORTGAGE OBLIGATIONS: debt securities that are collateralized by
a portfolio of mortgages or mortgage backed securities.

DEBT SECURITIES: securities used by issuers, such as governmental entities and
corporations, to borrow money. The issuer usually pays a fixed, variable or
floating rate of interest and repays the amount borrowed at the maturity date of
the security. However, if a borrower issues a zero coupon debt security, it does
not make regular interest payments.

DEPOSITARY RECEIPTS: instruments which are typically issued by financial
institutions and which represent ownership of securities of foreign
corporations. Depositary receipts are usually designed for use on U.S. and
European securities exchanges.

DISTRIBUTION FEE: a fee that covers the cost of the distribution system used to
sell shares to the public.

DOLLAR-WEIGHTED AVERAGE MATURITY: The average maturity of the Fund is the
average amount of time until the issuers of the debt securities in the Fund's
portfolio must pay off the principal amount of the debt. "Dollar weighted" means
the larger the dollar value of the debt security in the Fund's portfolio, the
more weight it gets in calculating this average.

DURATION: A mathematical calculation of the average life of a bond that serves
as a useful measure of its price risk. Each year of duration represents an
expected 1% change in interest rates. For example, if a bond has an average
duration of 4 years, its price will move 4% when interest rates move 1%.

FUNDAMENTAL RESEARCH: method which concentrates on "fundamental" information
about an issuer, such as its financial statements, history, management, etc.

GROWTH APPROACH: approach which focuses on identifying securities of companies
whose earnings growth potential appears to the manager to be greater than the
market in general and whose growth in revenue is expected to continue for an
extended period.

MANAGEMENT FEE: a fee paid to the investment adviser to manage the Fund and make
decisions about buying and selling the Fund's investments.

MORTGAGE-RELATED SECURITIES: securities that directly or indirectly represent an
interest in, or are secured by and paid from, mortgage loans secured by real
property.

OTHER EXPENSES: miscellaneous items, including transfer agency, custody and
registration fees.

<PAGE>

REPURCHASE AGREEMENTS: a type of short-term investment in which a dealer sells
securities to the Fund and agrees to buy them back later at a set price. In
effect, the dealer is borrowing the Fund's money for a short time, using the
securities as collateral.

SHAREHOLDER SERVICE FEE: a fee to cover the cost of paying shareholder servicing
agents to provide certain support services for your account.

STRIPPED OBLIGATIONS: debt securities which are separately traded interest-only
or principal-only components of an underlying obligation.

TECHNICAL ANALYSIS: method which focuses on historical price trends in an
attempt to predict future price movements.

VALUE APPROACH: approach which focuses on identifying securities that the
adviser believes are undervalued by the market, as measured by certain financial

formulas.

YIELD CURVE: measure showing relationship among yields of similar bonds with
different maturities.

<PAGE>

This page intentionally left blank

<PAGE>

HOW TO REACH US

MORE INFORMATION

You'll find more information about the Funds in the following documents:

ANNUAL AND SEMI-ANNUAL REPORTS

Our annual and semi-annual reports contain more information about each Fund's
investments and performance. The annual report also includes details about the
market conditions and investment strategies that had a significant effect on
each Fund's performance during the last fiscal year.

STATEMENT OF ADDITIONAL INFORMATION (SAI)

The SAI contains more detailed information about the Funds and their policies.
By law, it's considered to be part of this prospectus.

You can get a free copy of these documents and other information, or ask us any
questions, by calling us at 1-888-524-2730 or writing to:

CHASE FUNDS SERVICE CENTER
P.O. BOX 419392
KANSAS CITY, MO 64141-6392

If you buy your shares through The Chase Manhattan Bank or another institution,
you should contact that institution directly for more information. You can also
find information on-line at www.chasefunds.com on the internet.

You can write the SEC's Public Reference Room and ask them to mail you
information about the Funds, including the SAI. They'll charge you a copying fee
for this service. You can also visit the Public Reference Section and copy the
documents while you're there.

PUBLIC REFERENCE SECTION OF THE SEC
WASHINGTON , DC 20549-6009.

1-800-SEC-0330

Reports, a copy of the SAI and other information about the Funds is also
available on the SEC's website at http://www.sec.gov.

The Fund's Investment Company Act File No.
is 811-5526

CHASE FUNDS
FULFILLMENT CENTER
393 MANLEY STREET

WEST BRIDGEWATER, MA 02379-1039