JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
CHASE BALANCED FUND
CHASE CORE
EQUITY FUND
CHASE EQUITY
GROWTH FUND
CHASE EQUITY
INCOME FUND
CHASE SMALL
CAPITALIZATION FUND
<PAGE>
CONTENTS
Chairman's Letter 3
Fund Commentary and Portfolio of Investments
Chase Balanced Fund 4-13
Chase Core Equity Fund 14-21
Chase Equity Growth Fund 22-29
Chase Equity Income Fund 30-37
Chase Small Capitalization fund 38-46
Statement of Assets and Liabilities 47
Statement of Operations 48
Statement of Changes in Net Assets 49
Notes to Financial Statements 50-54
Financial Highlights 55-59
-----------------------------------------
NOT May Lose Value
FDIC
INSURED No Bank Guarantee
-----------------------------------------
<PAGE>
Chase Equity Funds
Chairman's Letter
August 1, 1999
Dear Shareholder:
We are pleased to present this semi-annual report for the following Chase Funds
for the six-month period ended June 30, 1999.
o Balanced Fund o Equity Income Fund
o Core Equity Fund o Small Capitalization Fund
o Equity Growth Fund
U.S. Equities Post Solid Gains
U.S. equity markets recorded strong investment results, thanks largely to
favorable economic conditions, good corporate earnings and benign inflation. In
March, the Dow Jones Industrial Average, a widely followed measure of stock
market activity, reached the 10,000 plateau for the first time, less than four
years after eclipsing 5,000.
Bonds did not fare as well, as interest rates trended higher. The rise in rates
was ignited by a robust economy. During the period, the unemployment rate fell
to its lowest level in a generation, while consumer confidence hit its highest
mark in more than 30 years. In addition, Gross Domestic Product for the first
quarter far exceeded analysts' expectations.
Large-, mid- and small-cap stocks recorded good performance. Small cap stocks
were especially strong during the final three months of the period. Technology
stocks continued to fare well, despite coming under pressure in February and May
along with stocks in most other sectors. In February and May, rates rose
markedly, putting pressure on equities and bonds. Finally, value-oriented stocks
showed signs of strength, which may indicate the beginning of a meaningful
turnaround in these securities.
On June 30, the Federal Reserve raised short-term rates to cool inflation fears.
The move had been anticipated by investors. It was the first rate hike by the
Fed since March, 1997; the first rate change since November, 1998. The Fed also
announced it adopted a neutral bias toward interest rates, suggesting inflation
is unlikely to be a major problem near-term. This favorable announcement was not
anticipated by investors, thereby igniting a strong rally in stocks and bonds as
the period came to a close.
Outlook
We remain optimistic about the prospects for stocks and bonds. The underpinnings
that have helped lift stock prices over the past six months continue to be in
place. Moreover, since we expect the economy to show signs of slowing in the
second half of 1999, we believe interest rates are likely to decline before year
end.
Sincerely,
/s/ Sarah E. Jones
- --------------------
Sarah E. Jones
3
<PAGE>
Chase Balanced Fund
as of June 30, 1999
(unaudited)
How the Fund Performed
Chase Balanced Fund, which seeks to provide a balance of current income and
growth of capital, had a total return of 4.84% (Premier Shares) for the
six-month period ended June 30, 1999.
How the Fund Was Managed
The Fund benefited from a good sector allocation strategy but the fixed-income
securities in the portfolio were negatively affected by rising interest rates
brought on by a spate of stronger-than-expected economic reports, mostly in
February and May.
Early in the period, the Fund benefited from its exposure to consumer cyclicals,
consumer staples and health care and communications stocks. Several financial
stocks also recorded above-average investment results for shareholders.
The Fund's bond holdings fared well in January but retreated in February
following the release of the best consumer confidence report in more than 30
years and a Gross Domestic Product report for the fourth quarter of 1998 that
was among the strongest in this decade. In May, however, a strong Consumer Price
Index (CPI) report for April, which included the largest ever increase in energy
prices, detracted from performance.
The Fund rallied in mid-June, as interest rates trended lower and stocks rallied
following a benign CPI report for May, released in mid-June. The Federal Reserve
Board's decision to adopt a neutral bias towards short-term interest rates at
its Federal Open Market Committee meeting on June 30th enabled the Fund to
finish the period on a strong note.
Where the Fund May Be Headed
Given the state of the economy and the Fed's recent decision to adopt a neutral
bias, our outlook for the financial markets is generally positive. Moreover,
despite the market's periodic concerns over inflation during the first six
months of this year, we expect the economy to slow later in 1999 due to seasonal
factors and uncertainties associated with the new millennium. This, in turn,
should lead to lower interest rates, which is likely to be good for stocks and
bonds.
4
<PAGE>
Chase Balanced Fund
as of June 30, 1999
(unaudited)
Fund Facts
Objective Current income and capital growth
Primary investments Common stock, preferred stock and fixed
income securities issued by corporations,
the U.S. government and its agencies
Suggested investment
time frame Long-term
Market benchmark Lehman Government/Corporate Index
S&P 500 Index
Lipper Funds Universe Balanced Funds Index
Inception date Premier Shares 3/29/88
Investor Shares 10/16/98
Newspaper symbol Balanced
Dividend Frequency Quarterly
Net Assets Premier Shares $86 Million
Investor Shares $3 Million
Investment Style/Market Cap Maturity/Quality
- -------|-------|------- -------|-------|-------
| | X Large | X | Large
- -------|-------|------- -------|-------|-------
| | Med. | | Med.
- -------|-------|------- -------|-------|-------
| | Small | | Small
- -------|-------|------- -------|-------|-------
Value Blend Growth Value Blend Growth
Equity Fixed Income
5
<PAGE>
Chase Balanced Fund
as of June 30, 1999
(unaudited)
10-Year Performance*
This chart shows what the long-term growth would have been of a hypothetical
investment in the Chase Balanced Fund compared to its key benchmarks. This is
where you see the Fund's long-term trend. This chart is for illustrative
purposes only.
<TABLE>
<CAPTION>
June 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Chase Balanced Fund 10,000 10,642 11,492 12,769 14,295 13,953 16,314 18,415 22,459 27,654 32,017
Lipper Balanced Funds Index 10,000 10,977 11,972 13,663 15,624 15,751 18,194 20,890 25,198 29,837 33,279
Lehman Govt./Corp. Index 10,000 10,711 11,805 13,478 15,250 15,027 16,945 17,734 19,109 21,265 21,838
S&P 500 Index 10,000 11,649 12,510 14,188 16,122 16,349 20,611 25,970 34,983 45,533 55,900
</TABLE>
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see the
Fund's short-term performance, which, as with the securities markets, tends to
be more volatile than the long-term trend.
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Premier Shares 15.76% 20.25% 18.07% 12.34%
Investor Shares 15.52% 20.16% 18.02% 12.32%
*Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Balanced Fund, the Lehman Government/Corporate Index,
the Standard & Poor's 500 Index and the Lipper Balanced Funds Index from June
30, 1989 to June 30, 1999. The performance of the Fund assumes the reinvestment
of all dividends and capital gains and does not include a sales charge. The
performance of the indices does not include a sales charge and has been adjusted
to reflect the reinvestment of all dividends and capital gains on the securities
included in the benchmark. Premier Shares carry a $1 million minimum initial
investment and carry no sales charge.
Investor Shares were introduced on 10/16/98 and have a minimum initial
investment of $2,500. Please note internal expenses are greater for the Investor
Shares class. Performance measurements for the Investor Shares prior to 10/16/98
are based on the predecessor Premier Shares class and do not include Investor
Share class expenses.
Chase Balanced Fund is the successor to the AVESTA Trust-Balanced Fund.
Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual
Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part of the
conversion, the Fund transferred all of its assets to Chase Balanced Fund, a new
investment portfolio of MFIT.
Chase Balanced Fund, unlike the AVESTA Trust-Balanced Fund, is subject to
certain diversification, distribution and other requirements imposed under the
Internal Revenue Code, which may impact performance.
The Lipper Balanced Funds Index represents performance of the largest 30
balanced funds. Each of these funds invests in a portfolio of stocks and bonds.
Lipper is an independent mutual fund performance monitor whose results are based
on total return and do not reflect a sales charge. An individual cannot invest
directly in an index.
The Standard and Poor's 500 Index is an unmanaged broad-based index that
replicates the U.S. stock markets. It includes 500 widely held common stocks.
Total return figures represent the reinvestment of dividends. An individual
cannot invest directly in an index.
The Lehman Government/Corporate Index includes the Government and Corporate Bond
Indices, including the U.S. Government Treasury and agency securities, corporate
and yankee bonds. The index is unmanaged and reflects the reinvestment of
dividends. An individual cannot invest directly in an index.
6
<PAGE>
Chase Balanced Fund
as of June 30, 1999
(unaudited)
How Much of the Fund Was Invested
Investments (98.1%)
Cash/Other (1.9%)
What the Fund Was Invested In
Percentage of Total Portfolio Investments
Other (1.9%)
Consumer Staples (2.2%)
Capital Goods (2.3%)
Utilities (4.3%)
Cash Equivalent & Short Term Paper (4.9%)
Financial (5.6%)
U.S. Government Agencies (7.4%)
Residential Mortgage-Backed Securities (1.5%)
Technology (17.5%)
Consumer Cyclicals (12.6%)
Health Care (9.8%)
U.S. Treasury Securities (30.0%)
Top Ten Equity Holdings
Microsoft Corp. (2.9%) Develops, manufactures, licenses and supports computer
software products.
General Electric Co. (2.2%) A diversified manufacturing, technology and services
company. Operations include appliance manufacturing, capital services,
information services, and electric distribution.
International Business Machines Corp. (1.9%) Manufactures micro and personal
computers. The Company also supplies mainframe computers and other information
processing equipment, software and networking products and peripheral equipment.
Intel Corp. (1.8%) Manufactures micro and personal computers. The Company also
supplies mainframe computers and other information processing equipment,
software and networking products and peripheral equipment.
Wal-Mart Stores, Inc. (1.7%) The "Wal-Mart" Company's discount stores and
"Supercenters" offer merchandise such as apparel, housewares, small appliances,
electronics, hardware and other products.
Lucent Technologies, Inc. (1.6%) Designs, develops, manufactures, and
distributes communications systems, software and products worldwide.
Charles Schwab Corp. (1.5%) Provides a variety of financial services to
individual investors, independent investment managers, retirement plans, and
institutions.
MCI WorldCom, Inc. (1.3%) Provides consumers and businesses with local, long
distance, Internet, data and international communications services.
Gap, Inc. (1.3%) An international specialty retailer, sells casual apparel,
personal care and other accessories for men, women, and children.
EMC Corp. (1.3%) Designs, manufactures, markets and supports hardware, software
and service products for the enterprise storage market.
Top 10 equity holdings comprised 17.5% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
7
<PAGE>
Chase Balanced Fund
Portfolio of Investments June 30, 1999 (unaudited)
(amounts in thousands)
Shares Issuer Value
- ---------------------------------------------------------------------
Long-Term Investments--94.7%
- ---------------------------------------------------------------------
Common Stock--49.0%
-------------------
Airlines--0.5%
13 Southwest Airlines Co. $ 404
------
Biotechnology--1.7%
16 Amgen, Inc. * 950
8 Biogen, Inc. * 540
------
1,490
------
Communications Equipment--1.5%
20 Lucent Technologies, Inc. 1,374
------
Computer Networks--1.5%
16 Cisco Systems, Inc. * 1,055
11 Newbridge Networks Corp. (Canada)
New York Registered Shares * 311
------
1,366
------
Computer Software--3.1%
4 Citrix Systems, Inc. * 237
28 Microsoft Corp. * 2,552
------
2,789
------
Computers/Computer Hardware--4.8%
20 Dell Computer Corp. * 725
21 EMC Corp. * 1,144
13 International Business Machines Corp. 1,693
11 Solectron Corp. * 734
------
4,296
------
Consumer Products--1.8%
9 Gillette Co. 379
8 Philip Morris Companies, Inc. 330
10 Procter & Gamble Co. 897
------
1,606
------
Diversified--0.6%
6 Tyco International LTD (Bermuda) 540
------
Electronics/Electrical Equipment--5.8%
14 Applied Materials, Inc. * 1,049
17 General Electric Co. 1,972
8 KLA-Tencor Corp. * 522
8 Motorola, Inc. 777
See notes to financial statements.
8
<PAGE>
Chase Balanced Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Shares Issuer Value
- -----------------------------------------------------------------------------
Long-Term Investments--(continued)
- -----------------------------------------------------------------------------
Electronics/Electrical Equipment--(continued)
12 Novellus Systems, Inc. * $ 816
------
5,136
------
Entertainment/Leisure--1.0%
12 Time Warner, Inc. 911
------
Financial Services--3.4%
3 American Express Co. 429
12 Charles Schwab Corp. 1,313
5 Fannie Mae 352
6 Merrill Lynch & Co., Inc. 444
5 Morgan Stanley Dean Witter and Co. 466
------
3,004
------
Food/Beverage Products--1.6%
3 Anheuser-Busch Companies, Inc. 181
13 Coca-Cola Co. 809
12 PepsiCo, Inc. 455
------
1,445
------
Health Care/Health Care Services--0.7%
4 Genzyme Corp. (General Division) * 205
1 Genzyme Surgical Products * 3
4 Guidant Corp. * 211
2 Medtronic, Inc. 187
------
606
------
Insurance--1.2%
9 American International Group 1,024
------
Internet Services/Software--0.3%
3 America Online, Inc. * 287
------
Pharmaceuticals--6.7%
8 Abbot Laboratories 373
10 American Home Products Corp. 561
11 Bristol-Myers Squibb Co. 789
8 Eli Lilly & Co. 562
8 Johnson & Johnson, Inc. 735
15 Merck & Co., Inc. 1,073
7 Pfizer, Inc. 790
12 Schering-Plough Corp. 610
7 Warner-Lambert Co. 472
------
5,965
------
See notes to financial statements.
9
<PAGE>
Chase Balanced Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--(continued)
- --------------------------------------------------------------------------------
Restaurants/Food Services--0.3%
5 McDonald's Corp. $ 202
------
Retailing--6.4%
13 Albertson's, Inc. 673
11 Bed Bath & Beyond, Inc.* 435
7 Best Buy Co., Inc.* 479
23 Gap, Inc. 1,151
8 Home Depot, Inc. 541
32 Kroger Co.* 883
31 Wal-Mart Stores, Inc. 1,481
------
5,643
------
Semi-Conductors--1.8%
27 Intel Corp. 1,577
------
Telecommunications--4.3%
7 Ameritech Corp. 503
16 AT&T Corp., 868
13 MCI WorldCom, Inc.* 1,156
5 Nextel Communications Inc, Class A * 269
9 SBC Communications, Inc. 499
5 Sprint Corp. 285
1 Vodafone AirTouch PLC ADR
(United Kingdom) 236
------
3,816
------
Total Common Stock 43,481
(Cost $26,633) ------
Principal
Amount
U.S. Treasury Securities--29.8%
-------------------------------
U.S. Treasury Notes & Bonds,
$2,500 5.25%, 05/15/04 2,457
1,470 5.50%, 01/31/03 1,461
1,800 5.50%, 03/31/03 1,787
3,890 5.88%, 11/15/05 3,890
8,085 6.25%, 08/15/23 8,123
8,000 6.38%, 03/31/01 8,115
625 6.50%, 11/15/26 650
------
Total U.S. Treasury Securities 26,483
(Cost $27,494) ------
See notes to financial statements.
10
<PAGE>
Chase Balanced Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Principal
Amount Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--(continued)
- --------------------------------------------------------------------------------
U.S. Government Agencies--7.4%
------------------------------
$1,000 Federal Home Loan Bank,
4.88%, 01/22/02 $982
3,600 Federal Home Loan Mortgage Corp.,
5.75%, 06/15/01 3,608
2,000 Federal National Mortgage Association,
6.38%, 06/15/09 1,989
-----
Total U.S. Government Agencies 6,579
(Cost $6,586) -----
Corporate Notes & Bonds--6.8%
-----------------------------
Automotive--1.8%
225 Ford Motor Credit Co.,
6.25%, 12/08/05 219
1,500 General Motors Acceptance Corp.,
5.85%, 01/14/09 1,376
-----
1,595
-----
Banking--0.4%
400 BankAmerica Corp.,
6.20%, 02/15/06 385
-----
Chemicals--1.1%
1,100 Monsanto Co., #,
5.88%, 12/01/08 1,020
-----
Consumer Products--0.3%
325 Procter & Gamble Co.,
6.45%, 01/15/26 297
-----
Financial Services--0.6%
500 Associates Corp. of North America, MTN,
7.52%, 03/29/00 506
-----
Food/Beverage Products--0.6%
500 Anheuser-Busch Companies, Inc.,
6.75%, 08/01/03 506
-----
Health Care/Health Care Services--0.7%
600 Abbot Laboratories,
5.60%, 10/01/03 583
-----
See notes to financial statements.
11
<PAGE>
Chase Balanced Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Principal
Amount Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--(continued)
- --------------------------------------------------------------------------------
Machinery & Engineering Equipment--0.1%
$ 100 Caterpillar Financial Services Corp., MTN,
6.95% , 11/01/00 $ 101
-------
Restaurants/Food Services--0.5%
450 McDonald's Corp.,
7.05%, 11/15/25 444
-------
Retailing--0.7%
600 Wal-Mart Stores Inc.,
6.75%, 05/15/02 610
-------
Total Corporate Notes & Bonds 6,047
(Cost $6,191) -------
Residential Mortgage-Backed Pass Through
Securities--1.5%
----------------------------------------
706 Federal National Mortgage Association,
Pool # 406258, 6.50%, 01/01/28 683
683 Government National Mortgage Association,
Pool # 416156, 6.50%, 02/15/26 660
-------
Total Residential Mortgage-Backed Pass
Through Securities 1,343
(Cost $1,376) -------
Asset Backed Securities--0.2%
-----------------------------
143 PNC Student Loan Trust I,
Ser. 1997-2, Class A2,
6.14%, 01/25/00 145
(Cost $143)
Total Long-Term Investments $84,078
(Cost $68,423)
- --------------------------------------------------------------------------------
Short-Term Investments--4.8%
- --------------------------------------------------------------------------------
Shares
Money Market Fund--2.3%
-----------------------
2,059 Fidelity Colchester Street Trust
Government Fund 2,059
(Cost $2,059) -------
See notes to financial statements.
12
<PAGE>
Chase Balanced Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Principal
Amount Issuer Value
- --------------------------------------------------------------------------------
Short-Term Investments--(continued)
- --------------------------------------------------------------------------------
Repurchase Agreement--2.5%
--------------------------
$2,242 Credit Suisse First Boston Finance
(Secured by U.S. Treasury Bonds),
in a joint trading account at
5.15%, dated 06/30/99 due 07/01/99;
Proceeds $2,242 $2,242
(Cost $2,242)
- --------------------------------------------------------------------------------
Total Short-Term Investments 4,301
(Cost $4,301)
- --------------------------------------------------------------------------------
Total Investments--99.5% $88,379
(Cost $72,724)
- --------------------------------------------------------------------------------
Index:
* -- Non-income producing security.
# -- Security may only be sold to qualified institutional buyers.
ADR -- American Depositary Receipt.
MTN -- Medium Term Note.
See notes to financial statements.
13
<PAGE>
Chase Core Equity Fund
as of June 30, 1999
(unaudited)
How the Fund Performed
Chase Core Equity Fund, which seeks to maximize total investment return with an
emphasis on long-term capital appreciation and current income, had a total
return of 13.35% (Premier Shares) for the six-month period ended June 30, 1999.
How the Fund Was Managed
Superior stock selection and generally good performance by the types of stocks
represented in the portfolio (high-quality, large-cap growth stocks with
attractive earnings prospects) were chiefly responsible for the Fund's superior
returns compared to the market.
Early in the period, the Fund benefited from its exposure to consumer cyclicals,
financials, transportation, health care and utilities. As the period progressed,
technology stocks, one of the better performing groups during the first half of
1999, also contributed positively to performance. June was a particularly strong
month for tech stocks, as growth in data and voice communications coupled with a
move towards outsourcing helped many large-cap stocks in this sector post
double-digit percentage gains.
The Fund's good performance was not without some minor disruptions along the
way. In February, and again in May, stocks, in general, came under pressure due
to rising long-term interest rates brought on by a spate of
stronger-than-expected economic reports.
The Fund, however, rebounded from these external events and finished the period
with solid gains, as the market rallied on the heels of strong corporate
earnings and a weaker-than-anticipated Consumer Price Index Report for May and
the Federal Reserve Board's decision to adopt a neutral bias towards interest
rates on June 30th.
Where the Fund May Be Headed
Looking ahead, our outlook for the equity market remains favorable. With broader
corporate profitability, fears of poor earnings have subsided. However, security
selection and industry diversification will play an important role in delivering
strong results in the months ahead. As always, we will focus our research on
high-quality growth companies with predictable earnings streams.
14
<PAGE>
Chase Core Equity Fund
as of June 30, 1999
(unaudited)
Fund Facts
Objective Capital appreciation and current income
Primary investments Common stock, preferred stock and
convertible securities of well-known
companies
Suggested investment
time frame Long-term
Market benchmark S&P 500 Index
Lipper Funds Universe Growth and Income Funds Index
Inception date Premier Shares 4/1/93
Investor Shares 9/10/98
Newspaper symbol CoreEq
Dividend Frequency Quarterly
Net Assets Premier Shares $162 Million
Investor Shares $1 Million
Investment Style/Market Cap
- -------|-------|-------
| X | Large
- -------|-------|-------
| | Med.
- -------|-------|-------
| | Small
- -------|-------|-------
Value Blend Growth
15
<PAGE>
Chase Core Equity Fund
as of June 30, 1999
(unaudited)
Life of Fund Performance*
This chart shows what the long-term growth would have been of a hypothetical
investment in the Chase Core Equity Fund compared to its key benchmarks. This is
where you see the Fund's long-term trend. This chart is for illustrative
purposes only.
<TABLE>
<CAPTION>
June 1994 1995 1996 1997 1998 1999
<S> <C> <C> <C> <C> <C> <C>
Chase Core Equity Fund 10,099 11,627 14,306 19,126 25,015 31,541
Lipper Growth & Income Funds Index 10,526 12,576 15,328 19,774 24,151 27,425
S&P 500 Index 10,190 12,847 16,187 21,805 28,380 34,842
</TABLE>
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see the
Fund' short-term performance, which, as with the stock markets, tends to be more
volatile than the long-term trend.
Since Inception
1 Year 3 Years 5 Years (4/1/93)
------ ------- ------- --------
Premier Shares 26.07% 30.14% 25.58% 20.18%
Investor Shares 25.74% 30.03% 25.51% 20.13%
*Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Core Equity Fund, the Standard & Poor's 500 Index and
Lipper Growth and Income Funds Index from April 1, 1993, to June 30, 1999. The
performance of the Fund assumed the reinvestment of all dividends and capital
gains and does not include a sales charge. The performance of the indices does
not include a sales charge and has been adjusted to reflect the reinvestment of
all dividends and capital gains on the securities included in the benchmark.
Premier Shares carry a $1 million minimum initial investment and carry no sales
charge.
Investor Shares were introduced on 9/10/98 and have a minimum initial investment
of $2,500. Please note internal expenses are greater for the Investor Shares
class. Performance measurements for the Investment Shares prior to 9/10/98 are
based on the predecessor Premier Shares class and do not include Investor Share
expenses.
Chase Core Equity Fund is the successor to the AVESTA Trust Core Equity Fund.
Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual
Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part of the
conversion, the Fund transferred all of its assets to Chase Core Equity Fund, a
new investment portfolio of MFIT.
Chase Core Equity Fund, unlike the AVESTA Core Equity Fund, is subject to
certain diversification, distribution and other requirements imposed under the
Internal Revenue Code, which may impact performance.
The Lipper Growth and Income Funds Index represents performance of the largest
30 growth and income funds. Each of these funds combines a growth of earnings
orientation and an income requirement for level and/or rising dividends. Lipper
is an independent mutual fund performance monitor whose results are based on
total return and do not reflect a sales charge. An individual cannot invest
directly in an index.
The Standard and Poor's 500 Index is an unmanaged broad-based index that
replicates the U.S. stock market. It includes 500 widely held common stocks.
Total return figures include the reinvestment of dividends. An individual cannot
invest directly in the index.
16
<PAGE>
Chase Core Equity Fund
as of June 30, 1999
(unaudited)
How Much of the Fund Was Invested
Cash/Other (2.7%)
Investments (97.3%)
What the Fund Was Invested In
Percentage of Total Portfolio Investments
Cash Equivalent & Short Term Paper (2.2%) Transportation (1.3%)
Consumer Cyclicals (19.5%) Technology (22.6%)
Consumer Staples (3.2%) Basic Materials (2.7%)
Capital Goods (6.0%)
Financial (16.3%)
Energy (7.6%)
Liabilities (8.4%) Health Care (10.2%)
Top Ten Equity Holdings
Microsoft Corp. (5.7%) Develops, manufactures, licenses and supports computer
software products.
General Electric Co. (3.6%) A diversified manufacturing, technology and services
company. Operations include appliance manufacturing, capital services,
information services, and electric distribution.
Wal-Mart Stores, Inc. (2.8%) The "Wal-Mart" Company's discount stores and
"Supercenters" offer merchandise such as apparel, housewares, small appliances,
electronics, hardware and other products.
Charles Schwab Corp. (2.8%) Provides a variety of financial services to
individual investors, independent investment managers, retirement plans, and
institutions.
American International Group (2.7%) Provides a variety of insurance and
financial services in the U.S. and internationally. The Company writes property,
casualty, marine, life and financial services insurance.
International Business Machines Corp. (2.6%) Manufactures micro and personal
computers. The Company also supplies mainframe computers and other information
processing equipment, software and networking products and peripheral equipment.
Best Buy Co., Inc. (2.5%) Retails consumer electronics, home office equipment,
entertainment software, and appliances.
Fannie Mae (2.0%) Buys and holds mortgages, and issues and sells guaranteed
mortgage-backed securities to facilitate housing ownership for low to middle
income Americans.
Citigroup, Inc (2.0%) A diversified financial services holding company that
provides investment services, including asset management, consumer finance
services, property and casualty insurance services, and life insurance services.
Cisco Systems, Inc. (1.9%) Supplies data networking products to the corporate
enterprise and public wide area service provider markets. The Company offers a
variety of products including routers, LAN switches and remote access
concentrators.
Top 10 equity holdings comprised 28.6% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
17
<PAGE>
Chase Core Equity Fund
Portfolio of Investments June 30, 1999 (unaudited)
(amounts in thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--95.5%
- --------------------------------------------------------------------------------
Common Stock--95.5%
Airlines--1.3%
66 Southwest Airlines Co. $ 2,065
-------
Automotive--1.2%
6 Delphi Automotive Systems 112
23 Ford Motor Co. 1,315
9 General Motors Corp. 587
-------
2,014
-------
Banking--2.9%
23 Bank of America Corp. 1,714
39 Bank of New York Co., Inc. 1,429
38 Wells Fargo Co. 1,644
-------
4,787
-------
Biotechnology--0.3%
7 Amgen, Inc. * 420
-------
Chemicals--1.7%
22 E.I. Du Pont de Nemours and Co. 1,494
31 Monsanto Co. 1,238
-------
2,732
-------
Communications Equipment--1.7%
42 Lucent Technologies, Inc. 2,802
-------
Computer Networks--1.8%
46 Cisco Systems, Inc. * 2,970
-------
Computer Software--5.6%
101 Microsoft Corp. * 9,064
-------
Computers/Computer Hardware--7.9%
43 Compaq Computer Corp. 1,007
74 Dell Computer Corp. * 2,731
31 EMC Corp. * 1,700
15 Hewlett-Packard Co. 1,487
32 International Business Machines Corp. 4,149
28 Solectron Corp. * 1,834
-------
12,908
-------
Consumer Products--3.8%
6 Clorox Co. 636
19 Colgate-Palmolive Co. 1,879
22 Gillette Co. 906
See notes to financial statements.
18
<PAGE>
Chase Core Equity Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--(continued)
- --------------------------------------------------------------------------------
Consumer Products--(continued)
26 Philip Morris Companies, Inc. $ 1,039
18 Procter & Gamble Co. 1,584
-------
6,044
-------
Diversified--1.6%
27 Tyco International LTD (Bermuda) 2,558
-------
Electronics/Electrical Equipment--4.2%
51 General Electric Co. 5,808
11 Motorola, Inc. 1,028
-------
6,836
-------
Entertainment/Leisure--1.3%
28 Time Warner, Inc. 2,080
-------
Financial Services--8.7%
22 American Express Co. 2,798
12 Associates First Capital Corp., Class A 535
41 Charles Schwab Corp. 4,453
67 Citigroup, Inc. 3,192
47 Fannie Mae 3,207
-------
14,185
-------
Food/Beverage Products--3.1%
22 Anheuser-Busch Companies, Inc. 1,534
35 Coca-Cola Co. 2,169
36 PepsiCo, Inc. 1,391
-------
5,094
-------
Health Care/Health Care Services--1.1%
20 Guidant Corp. * 1,029
9 Medtronic, Inc. 736
-------
1,765
-------
Insurance--4.3%
35 American General Corp. 2,668
37 American International Group 4,325
-------
6,993
-------
Internet Services/Software--0.7%
10 America Online, Inc. * 1,149
Manufacturing--0.8%
17 Illinois Tool Works, Inc. 1,382
-------
Media/Advertising--0.5%
11 Omnicom Group, Inc. 860
-------
See notes to financial statements.
19
<PAGE>
Chase Core Equity Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--(continued)
- --------------------------------------------------------------------------------
Metals/Mining--0.9%
24 Aluminum Co. of America (ALCOA) $ 1,485
-------
Office/Business Equipment--1.7%
22 Pitney-Bowes, Inc. 1,439
24 Xerox Corp. 1,406
-------
2,845
-------
Oil & Gas--7.5%
14 Chevron Corp. 1,361
28 Enron Corp. 2,279
35 Exxon Corp. 2,684
27 Mobil Corp. 2,624
21 Royal Dutch Petroleum Co., (Netherlands)
New York Registered Shares 1,277
15 Texaco, Inc. 934
23 Williams Companies, Inc. 962
-------
12,121
-------
Pharmaceuticals--8.7%
25 Abbot Laboratories 1,115
22 American Home Products Corp. 1,236
28 Bristol-Myers Squibb Co. 1,993
17 Eli Lilly & Co. 1,189
18 Johnson & Johnson, Inc. 1,735
32 Merck & Co., Inc. 2,383
19 Pfizer, Inc. 2,052
31 Schering-Plough Corp. 1,626
11 Warner-Lambert Co. 791
-------
14,120
-------
Restaurants/Food Services--0.7%
29 McDonald's Corp. 1,194
-------
Retailing--11.5%
25 Bed Bath & Beyond, Inc. * 947
60 Best Buy Co., Inc. * 4,016
25 Dayton-Hudson Corp. 1,596
39 Gap, Inc. 1,968
39 Home Depot, Inc. 2,487
48 Kroger Co. * 1,352
67 Walgreen Co. 1,962
See notes to financial statements.
20
<PAGE>
Chase Core Equity Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--(continued)
- --------------------------------------------------------------------------------
Retailing--(continued)
93 Wal-Mart Stores, Inc. $ 4,492
-------
18,820
-------
Semi-Conductors--1.8%
49 Intel Corp. 2,916
-------
Telecommunications--7.7%
43 AT&T Corp. 2,390
36 BellSouth Corp. 1,688
22 GTE Corp. 1,689
27 MCI WorldCom, Inc. * 2,333
50 SBC Communications, Inc. 2,912
30 Sprint Corp. 1,570
-------
12,582
-------
Utilities--0.5%
33 NiSource Inc. 860
- --------------------------------------------------------------------------------
Total Long-Term Investments 155,651
(Cost $111,049)
- --------------------------------------------------------------------------------
Short-Term Investments--2.1%
- --------------------------------------------------------------------------------
Money Market Fund--1.8%
2,949 Fidelity Colchester Street Trust
Government Fund 2,949
(Cost $2,949) -------
Principal
Amount
Repurchase Agreement--0.3%
$548 Credit Suisse First Boston Finance
(Secured by U.S. Treasury Bonds),
in a joint trading account at 5.15%,
dated 06/30/99 due 07/01/99;
Proceeds $548 548
(Cost $548)
- --------------------------------------------------------------------------------
Total Short-Term Investments
(Cost $3,497) 3,497
- --------------------------------------------------------------------------------
Total Investments--97.6%
(Cost $114,546) $159,148
- --------------------------------------------------------------------------------
Index:
* -- Non-income producing security.
See notes to financial statements.
21
<PAGE>
Chase Equity Growth Fund
as of June 30, 1999
(unaudited)
How the Fund Performed
Chase Equity Growth Fund, which seeks to provide capital appreciation, had a
total return of 11.84% (Premier Shares) for the six-month period ended June 30,
1999.
How the Fund Was Managed
The Fund's performance was bolstered by generally good investment results by the
stock market, healthy economic conditions and diminishing fears of global
economic uncertainty.
Early in the period, the Fund benefited from its exposure to consumer cyclicals,
consumer staples and communication services companies, as these stocks performed
relatively well. Several of the Fund's holdings in the financial, health care
and technology sectors also contributed positively to performance.
The Fund's exposure to technology stocks proved rewarding to shareholders in
April and June, as these stocks recorded solid investment gains on news of good
corporate earnings. However, tech stocks, as well as stocks in most other
sectors of the economy, came under pressure in May due to rising interest rates
brought on by inflation worries.
Positive corporate earnings announcements in the final weeks of the period and a
benign Consumer Price Index report for May, released in mid-June, helped boost
the Fund's investment results. Good performance by secondary stocks compared to
the market and diminishing concerns over earnings also contributed positively to
investment results.
Where the Fund May Be Headed
Looking ahead, our outlook for the equity market remains favorable. With broader
corporate profitability, fears of poor earnings have subsided. However, security
selection and industry diversification will play an important role in delivering
strong results in the months ahead. As always, we will focus our research on
high-quality growth companies with predictable earnings streams.
22
<PAGE>
Chase Equity Growth Fund
as of June 30, 1999
(unaudited)
Fund Facts
Objective Capital appreciation
Primary investments Growth-oriented company stocks such
as common stocks, preferred stock
and convertibles
Suggested investment
time frame Long-term
Market benchmark S&P Barra Growth Index
Lipper Funds Universe Growth Funds Index
Inception date Premier Shares 3/29/88
Investor Shares 8/13/98
Newspaper symbol Eq Gro
Dividend Frequency Quarterly
Net Assets Premier Shares $237 Million
Investor Shares $7 Million
Investment Style/Market Cap
- -------|-------|-------
| | X Large
- -------|-------|-------
| | Med.
- -------|-------|-------
| | Small
- -------|-------|-------
Value Blend Growth
23
<PAGE>
Chase Equity Growth Fund
as of June 30, 1999
(unaudited)
10-Year Performance*
This chart shows what the long-term growth would have been of a hypothetical
investment in the Chase Equity Growth Fund compared to its key benchmarks. This
is where you can see the Fund's long-term trend. This chart is for illustrative
purposes only.
<TABLE>
<CAPTION>
June 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Chase Equity Growth Fund 10,000 11,655 11,751 12,911 14,527 14,206 17,083 20,431 27,737 37,486 48,486
Lipper Growth Funds Index 10,000 11,319 11,908 13,555 15,800 16,067 19,784 23,869 29,977 38,450 46,789
S&P Barra Growth Index 10,000 12,480 13,594 15,387 16,662 16,618 21,724 27,649 38,247 51,530 66,054
</TABLE>
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see the
Fund's short-term performance, which, as with the stock markets, tends to be
more volatile than the long-term trend.
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Premier Shares 29.33% 33.38% 27.83% 17.10%
Investor Shares 29.02% 33.28% 27.77% 17.07%
* Source: Lipper Analyical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Equity Growth Fund, the Standard & Poor's Barra Growth
Index and Lipper Growth Funds Index from June 30, 1989 to June 30, 1999. The
performance of the Fund assumes the reinvestment of all dividends and capital
gains and does not include a sales charge. The performance of the indices does
not include a sales charge and has been adjusted to reflect the reinvestment of
all dividends and capital gains on the securities included in the benchmark.
Premier Shares carry a $1 million minimum initial investment and carry no sales
charge.
Investor Shares were introduced on 8/13/98 and have a minimum initial investment
of $2,500. Please note internal expenses are greater for the Investor Shares
class. Performance measurements for the Investor Shares prior to 8/13/98 are
based on the predecessor Premier Shares class and do not include Investor Share
class expenses.
Chase Equity Growth Fund is the successor to the AVESTA Trust Equity Growth
Fund. Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to
Mutual Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part
of the conversion, the Fund transferred all of its assets to Chase Equity Growth
Fund, a new investment portfolio of MFIT.
Chase Equity Growth Fund, unlike the AVESTA Equity Growth Fund, is subject to
certain diversification, distribution and other requirements imposed under the
Internal Revenue Code, which may impact performance.
The Lipper Growth Funds Index represents performance of the largest 30 growth
funds. Each of these funds invests in companies whose long-term earnings are
expected to grow significantly faster than the earnings of the stocks
represented in the major unmanaged stock indices. Lipper is an independent
mutual fund performance monitor whose results are based on total return and do
not reflect a sales charge. An individual cannot invest directly in an index.
The Standard and Poor's Barra Growth Index is an unmanaged broad-based index
that replicates the U.S. stock market. It includes 500 widely held common
stocks. Total return figures include the reinvestment of dividends. An
individual cannot invest directly in an index.
24
<PAGE>
Chase Equity Growth Fund
as of June 30, 1999
(unaudited)
How Much of the Fund Was Invested
Cash/Order (0.7%)
Investments (99.3%)
What the Fund Was Invested In
Percentage of Total Portfolio Investments
Consumer Staples (3.2%)
Capital Goods (4.2%)
Cash Equivalents & Short Term Paper (4.9%)
Utilities (8.3%)
Financial (8.8%)
Health Care (17.6%)
Transportation (0.9%)
Technology (33.8%)
Consumer Cyclicals (18.3%)
Top Ten Equity Holdings
Microsoft Corp. (5.6%) Develops, manufactures, licenses and supports computer
software products.
General Electric Co. (4.3%) A diversified manufacturing, technology and services
company. Operations include appliance manufacturing, capital services,
information services, and electric distribution.
International Business Machines Corp. (3.7%) Manufactures micro and personal
computers. The Company also supplies mainframe computers and other information
processing equipment, software and networking products and peripheral equipment.
Intel Corp. (3.5%) Manufactures micro and personal computers. The Company also
supplies mainframe computers and other information processing equipment,
software and networking products and peripheral equipment.
Wal-Mart Stores, Inc. (3.2%) The "Wal-Mart"
Company's discount stores and "Supercenters" offer merchandise such as apparel,
housewares, small appliances, electronics, hardware and other products.
Lucent Technologies, Inc. (3.0%) Designs, develops, manufactures, and
distributes communications systems, software and products worldwide.
Charles Schwab Corp. (2.9%) Provides a variety of financial services to
individual investors, independent investment managers, retirement plans, and
institutions.
MCI WorldCom, Inc. (2.5%) Provides consumers and businesses with local, long
distance, Internet, data and international communications services.
Gap, Inc. (2.5%) An international specialty retailer, sells casual apparel,
personal care and other accessories for men, women, and children.
EMC Corp. (2.5%) Designs, manufactures, markets and supports hardware, software
and service products for the enterprise storage market.
Top 10 equity holdings comprised 33.7% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
25
<PAGE>
Chase Equity Growth Fund
Portfolio of Investments June 30, 1999 (unaudited)
(amounts in thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--95.6%
- --------------------------------------------------------------------------------
Common Stock--95.6%
Airlines--0.9%
70 Southwest Airlines Co. $ 2,164
-------
Biotechnology--3.3%
84 Amgen, Inc. * 5,101
45 Biogen, Inc. * 2,894
-------
7,995
-------
Communications Equipment--3.0%
109 Lucent Technologies, Inc. 7,364
-------
Computer Networks--3.0%
88 Cisco Systems, Inc. * 5,647
58 Newbridge Networks Corp. (Canada)
New York Registered Shares * 1,666
-------
7,313
-------
Computer Software--6.1%
22 Citrix Systems, Inc. * 1,254
152 Microsoft Corp. * 13,672
-------
14,926
-------
Computers/Computer Hardware--9.5%
105 Dell Computer Corp. * 3,881
112 EMC Corp. * 6,133
70 International Business Machines Corp. 9,099
59 Solectron Corp. * 3,948
-------
23,061
-------
Consumer Products--3.5%
49 Gillette Co. 2,021
44 Philip Morris Companies, Inc. 1,776
54 Procter & Gamble Co. 4,815
-------
8,612
-------
Diversified--1.2%
31 Tyco International LTD (Bermuda) 2,899
Electronics/Electrical Equipment--11.3%
76 Applied Materials, Inc. * 5,629
94 General Electric Co. 10,588
43 KLA-Tencor Corp. * 2,799
44 Motorola, Inc. 4,188
64 Novellus Systems, Inc. * 4,361
-------
27,565
See notes to financial statements.
26
<PAGE>
Chase Equity Growth Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--(continued)
- --------------------------------------------------------------------------------
Entertainment/Leisure--2.0%
67 Time Warner, Inc. $ 4,888
-------
Financial Services--6.6%
18 American Express Co. 2,329
64 Charles Schwab Corp. 7,027
28 Fannie Mae 1,894
30 Merrill Lynch & Co., Inc. 2,358
25 Morgan Stanley Dean Witter and Co. 2,527
-------
16,135
-------
Food/Beverage Products--3.2%
14 Anheuser-Busch Companies, Inc. 958
70 Coca-Cola Co. 4,344
63 PepsiCo, Inc. 2,439
-------
7,741
-------
Health Care/Health Care Services--1.3%
23 Genzyme Corp. (General Division) * 1,113
4 Genzyme Surgical Products * 18
22 Guidant Corp. * 1,132
13 Medtronic, Inc. 1,008
-------
3,271
-------
Insurance--2.3%
47 American International Group 5,517
-------
Internet Services/Software--0.6%
14 America Online, Inc. * 1,514
-------
Pharmaceuticals--13.1%
44 Abbot Laboratories 2,011
52 American Home Products Corp. 3,004
60 Bristol-Myers Squibb Co. 4,240
42 Eli Lilly & Co. 2,998
40 Johnson & Johnson, Inc. 3,930
78 Merck & Co., Inc. 5,735
39 Pfizer, Inc. 4,258
62 Schering-Plough Corp. 3,281
37 Warner-Lambert Co. 2,532
-------
31,989
-------
See notes to financial statements.
27
<PAGE>
Chase Equity Growth Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--(continued)
- --------------------------------------------------------------------------------
Restaurants/Food Services--0.4%
27 McDonald's Corp. $ 1,095
-------
Retailing--12.4%
70 Albertson's, Inc. 3,615
61 Bed Bath & Beyond, Inc.* 2,335
38 Best Buy Co., Inc.* 2,565
122 Gap, Inc. 6,167
45 Home Depot, Inc. 2,913
171 Kroger Co.* 4,766
164 Wal-Mart Stores, Inc. 7,932
-------
30,293
-------
Semi-Conductors--3.5%
142 Intel Corp. 8,464
-------
Telecommunications--8.4%
37 Ameritech Corp. 2,687
84 AT&T Corp. 4,666
72 MCI WorldCom, Inc. * 6,180
29 Nextel Communications, Inc., Class A * 1,435
46 SBC Communications, Inc. 2,674
29 Sprint Corp. 1,542
6 Vodafone AirTouch PLC ADR
(United Kingdom) 1,246
-------
20,430
- --------------------------------------------------------------------------------
Total Long-Term Investments 233,236
(Cost $138,930)
- --------------------------------------------------------------------------------
Short-Term Investments--4.9%
- --------------------------------------------------------------------------------
Money Market Fund--1.0%
2,387 Fidelity Colchester Street Trust
Government Fund 2,387
-------
(Cost $2,387)
See notes to financial statements.
28
<PAGE>
Chase Equity Growth Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Principal
Amount Issuer Value
- --------------------------------------------------------------------------------
Short-Term Investments--(continued)
- --------------------------------------------------------------------------------
Repurchase Agreement--3.9%
$9,514 Credit Suisse First Boston Finance
(Secured by U.S. Treasury Bonds),
in a joint trading account at 5.15%,
dated 06/30/99 due 07/01/99;
Proceeds $9,515 $9,514
(Cost $9,514)
- --------------------------------------------------------------------------------
Total Short-Term Investments 11,901
(Cost $11,901)
- --------------------------------------------------------------------------------
Total Investments--100.5% $245,137
(Cost $150,831)
- --------------------------------------------------------------------------------
Index:
*--Non-income producing security.
ADR--American Depositary Receipt.
See notes to financial statements.
29
<PAGE>
Chase Equity Income Fund
as of June 30, 1999
(unaudited)
How the Fund Performed
Chase Equity Income Fund, which seeks to provide capital appreciation and
current income, posted a total return of 10.46% (Premier Shares) for the
six-month period ended June 30, 1999.
How the Fund Was Managed
The Fund's good relative performance was fueled by a favorable economic
environment and healthy stock market conditions.
Early in 1999, the Fund enjoyed good returns from high-quality growth stocks. As
the period progressed, holdings in the energy and capital goods sectors proved
rewarding to shareholders. In addition, the Fund's investment in the
communication and technology industries contributed positively to returns.
A broad-based stock market rally late in the period also bolstered investment
results. The rally was ignited by falling interest rates following a positive
Consumer Price Index report for May released in mid-June, and expectations of a
modest hike in short-term rates by the Federal Reserve Board. On June 30th, the
Fed delivered on those expectations by raising short-term interest rates
one-quarter of one percent and, to the surprise of most investors, adopting a
neutral bias towards interest rates.
Where the Fund May Be Headed
Looking ahead, our outlook for the stock market remains favorable. However, in
the current environment, security selection and industry diversification will be
critically important in achieving good return. We intend to use any significant
market correction as an opportunity to increase our exposure to securities that,
in our judgment, can best help the Fund achieve its long-term investment
objective.
30
<PAGE>
Chase Equity Income Fund
as of June 30, 1999
(unaudited)
Fund Facts
Objective Capital appreciation and current income
Primary investments Income-oriented company stocks including common
stock, preferred stock and convertible securities
Suggested investment
time frame Long-term
Market benchmark S&P 500 Index
Lipper Funds Universe Equity Income Funds Index
Inception date Premier Shares 3/29/88
Investor Shares 8/24/98
Newspaper symbol Eqlnc
Dividend Frequency Quarterly
Net Assets Premier Shares $152 Million
Investor Shares $2 Million
Investment Style/Market Cap
- -------|-------|-------
| X | Large
- -------|-------|-------
| | Med.
- -------|-------|-------
| | Small
- -------|-------|-------
Value Blend Growth
31
<PAGE>
Chase Equity Income Fund
as of June 30, 1999
(unaudited)
10-Year Performance*
This chart shows what the long-term growth would have been of a hypothetical
investment in the Chase Equity Income Fund compared to its key benchmarks. This
is where you can see the Fund's long-term trend. This chart is for illustrative
purposes only.
<TABLE>
<CAPTION>
June 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Chase Equity Income Fund 10,000 10,668 11,279 12,365 14,354 14,241 16,791 20,717 27,292 34,344 41,461
Lipper Equity Income Funds Index 10,000 10,711 11,440 13,228 15,422 15,871 18,553 22,412 28,399 34,435 38,293
S&P 500 Index 10,000 11,649 12,510 14,188 16,122 16,349 20,611 25,970 34,983 45,533 55,900
</TABLE>
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see the
Fund's short-term performance, which, as with the stock markets, tends to be
more volatile than the long-term trend.
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Premier Shares 20.72% 26.02% 23.83% 15.28%
Investor Shares 20.42% 25.92% 23.77% 15.25%
*Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
This chart represents the comparative performance of $10,000 invested in Premier
Shares of Chase Equity Income, the Standard & Poor's 500 Index and the Lipper
Equity Income Funds Index from June 30, 1989 to June 30, 1999. The performance
of the Fund assumes the reinvestment of all dividends and capital gains and does
not include a sales charge. The performance of the indices does not include a
sales charge and has been adjusted to reflect the reinvestment of all dividends
and capital gains on the securities included in the benchmark. Premier Shares
carry a $1 million minimum initial investment and carry no sales charge.
Investor Shares were introduced on 8/24/98 and have a minimum initial investment
of $2,500. Please note internal expenses are greater for the Investor Shares
class. Performance measurements for the Investor Shares prior to 8/24/98 are
based on the predecessor Premier Shares class and do not include Investor Share
class expenses.
Chase Equity Income Fund is the successor to the AVESTA Trust Equity Growth
Fund. Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to
Mutual Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part
of the conversion, the Fund transferred all of its assets to Chase Equity Income
Fund, a new investment portfolio of MFIT.
Chase Equity Income Fund, unlike the AVESTA Equity Income Fund is subject to
certain diversification, distribution and other requirements imposed under the
Internal Revenue Code, which may impact performance. The Lipper Equity Income
Funds Index represents performance of the largest 30 Equity Income Funds. Each
of these funds combines a growth of earnings orientation and an income
requirement for level and/or rising dividends. Lipper is an independent mutual
fund performance monitor whose results are based on total return and do not
reflect a sales charge. An individual cannot invest directly in an index.
The Standard and Poor's 500 Index is an unmanaged broad-based index that
replicates the U.S. stock market. It includes 500 widely held common stocks.
Total return figures include the reinvestment of dividends. An individual cannot
invest directly in an index.
32
<PAGE>
Chase Equity Income Fund
as of June 30, 1999
(unaudited)
How Much of the Fund Was Invested
Cash/Order (0.3%)
Investments (99.7%)
What the Fund Was Invested In
Percentage of Total Portfolio Investments
Basic Materials (4.4%)
Cash Equivalents & Short Term Paper (4.8%)
Consumer Staples (4.9%)
Capital Goods (7.9%)
Energy (9.7%)
Consumer Cyclicals (11.1%)
Transportation (1.4%)
Technology (17.7%)
Financial (14.6%)
Health Care (11.9%)
Utilities (11.6%)
Top Ten Equity Holdings
International Business Machines Corp. (4.2%) Manufactures micro and personal
computers. The Company also supplies mainframe computers and other information
processing equipment, software and networking products and peripheral equipment.
Microsoft Corp. (3.0%) Develops, manufactures, licenses and supports computer
software products.
General Electric Co. (3.0%) A diversified manufacturing, technology and services
company. Operations include appliance manufacturing, capital services,
information services, and electric distribution.
American International Group (2.8%) Provides a variety of insurance and
financial services in the U.S. and internationally. The Company writes property,
casualty, marine, life and financial services insurance.
Citigroup, Inc. (2.7%) A diversified financial services holding company that
provides investment services, including asset management, consumer finance
services, property and casualty insurance services, and life insurance services.
Lucent Technologies, Inc. (2.6%) Designs, develops, manufactures, and
distributes communications systems, software and products worldwide.
American Express Co. (2.6%) Provides travel related, financial advisory and
international banking services throughout the world.
Texas Instruments, Inc. (2.4%) Provides semiconductor products worldwide, as
well as designs and supplies digital signal processing solutions and analog
integrated circuits.
Pfizer, Inc. (2.3%) A research based, global health care company specializing in
health care, animal health, and consumer health care. The Company's products
include bone and joint devices, anti-inflammatory medicines and personal care
products.
Bristol-Myers Squibb Co. (2.2%) diversified worldwide health and personal care
company that manufactures and markets pharmaceuticals, consumer medicines,
beauty care products, nutritionals, and medical devices.
Top 10 equity holdings comprised 27.8% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
33
<PAGE>
Chase Equity Income Fund
Portfolio of Investments June 30, 1999 (unaudited)
(amounts in thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--95.7%
- --------------------------------------------------------------------------------
Common Stock--95.7%
-------------------
Aerospace--2.5%
39 Lockheed Martin Corp. $ 1,438
34 Raytheon Co., Class B 2,407
--------
3,845
--------
Automotive--1.8%
11 Delphi Automotive Systems 209
26 Ford Motor Co. 1,439
16 General Motors Corp. 1,063
--------
2,711
--------
Banking--5.5%
67 Bank of New York Co., Inc. 2,454
34 First Union Corp. 1,617
13 J. P. Morgan & Co., Inc. 1,883
37 SunTrust Banks, Inc. 2,555
--------
8,509
--------
Chemicals--3.7%
14 Dow Chemical Co. 1,827
31 E.I. Du Pont de Nemours and Co. 2,090
47 Monsanto Co. 1,842
--------
5,759
--------
Communications Equipment--2.6%
60 Lucent Technologies, Inc. 4,049
--------
Computer Networks--0.5%
12 Cisco Systems, Inc. * 780
--------
Computer Software--3.1%
52 Microsoft Corp. * 4,717
--------
Computers/Computer Hardware--7.9%
19 Hewlett-Packard Co. 1,889
50 International Business Machines Corp. 6,488
26 Texas Instruments, Inc. 3,785
--------
12,162
--------
Consumer Products--5.0%
26 Gillette Co. 1,070
50 Philip Morris Companies, Inc. 2,021
37 Procter & Gamble Co. 3,284
34
See notes to financial statements.
<PAGE>
Chase Equity Income Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--(continued)
- --------------------------------------------------------------------------------
Consumer Products--(continued)
43 Ralston-Ralston Purina Group $ 1,303
--------
7,678
--------
Diversified--1.2%
54 Dover Corp. 1,897
--------
Electronics/Electrical Equipment--4.3%
41 General Electric Co. 4,610
21 Motorola, Inc. 2,028
--------
6,638
--------
Financial Services--6.3%
31 American Express Co. 4,034
88 Citigroup, Inc. 4,181
20 Merrill Lynch & Co., Inc. 1,607
--------
9,822
--------
Food/Beverage Products--4.9%
26 Anheuser-Busch Companies, Inc. 1,866
31 Coca-Cola Co. 1,925
30 PepsiCo Inc. 1,161
87 Sysco Corp. 2,582
--------
7,534
--------
Insurance--2.8%
37 American International Group 4,313
--------
Multi-Media--0.4%
19 The Walt Disney Co. 573
--------
Office/Business Equipment--1.6%
42 Xerox Corp. 2,504
--------
Oil & Gas--9.8%
23 BP Amoco PLC, ADR (United Kingdom) 2,537
26 Chevron Corp. 2,503
26 Enron Corp. 2,150
29 Mobil Corp. 2,911
43 Royal Dutch Petroleum Co., (Netherlands)
New York Registered Shares 2,595
8 Schlumberger, LTD 503
30 Texaco, Inc. 1,863
--------
15,062
--------
See notes to financial statements.
35
<PAGE>
Chase Equity Income Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--(continued)
- --------------------------------------------------------------------------------
Paper/Forest Products--0.7%
21 International Paper Co. $ 1,035
--------
Pharmaceuticals--12.0%
43 Abbot Laboratories 1,947
39 American Home Products Corp. 2,243
49 Bristol-Myers Squibb Co. 3,423
42 Eli Lilly & Co. 2,980
19 Johnson & Johnson, Inc. 1,842
32 Merck & Co., Inc. 2,346
33 Pfizer, Inc. 3,600
--------
18,381
--------
Retailing--4.0%
23 Home Depot, Inc. 1,450
21 J.C. Penney Co., Inc. 1,010
17 Sears Roebuck & Co. 762
62 Wal-Mart Stores, Inc. 3,001
--------
6,223
--------
Semi-Conductors--2.0%
51 Intel Corp. 3,005
--------
Shipping/Transportation--1.4%
39 Norfolk Southern Corp. 1,181
16 Union Pacific Corp. 927
--------
2,108
--------
Telecommunications--8.0%
32 Ameritech Corp. 2,381
42 AT&T Corp. 2,369
28 Bell Atlantic Corp. 1,850
40 BellSouth Corp. 1,884
24 GTE Corp. 1,788
34 SBC Communications, Inc. 1,972
--------
12,244
--------
See notes to financial statements.
36
<PAGE>
Chase Equity Income Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--(continued)
- --------------------------------------------------------------------------------
Utilities--3.7%
52 DQE, Inc. $ 2,074
31 Duke Energy Corp. 1,707
72 NiSource Inc. 1,854
---------
5,635
- --------------------------------------------------------------------------------
Total Long-Term Investments 147,184
(Cost $89,026)
- --------------------------------------------------------------------------------
Short-Term Investments--4.9%
- --------------------------------------------------------------------------------
Money Market Fund--2.8%
-----------------------
4,268 Fidelity Colchester Street Trust
Government Fund 4,268
---------
(Cost $4,268)
Principal
Amount
Repurchase Agreement--2.1%
--------------------------
$3,217 Credit Suisse First Boston Finance
(Secured by U.S. Treasury Bonds),
in a joint trading account at 5.15%,
dated 06/30/99 due 07/01/99;
Proceeds $3,217 3,217
(Cost $3,217)
- --------------------------------------------------------------------------------
Total Short-Term Investments 7,485
(Cost $7,485)
- --------------------------------------------------------------------------------
Total Investments--100.6% $154,669
(Cost $96,511)
- --------------------------------------------------------------------------------
Index:
*--Non-income producing security.
ADR--American Depositary Receipt.
See notes to financial statements.
37
<PAGE>
Chase Small Capitalization Fund
as of June 30, 1999
(unaudited)
How the Fund Performed
Chase Small Capitalization Fund, which seeks to provide capital appreciation,
had a total return of 4.66% (Premier Shares) for the six-month period ended
June 30, 1998.
How the Fund Was Managed
Lackluster performance by secondary stocks early in 1999 detracted from
investment results, but superior stock selection by management lifted returns
for the period.
Following strong performance at the end of 1998, small cap stocks opened the
year on a negative note as investor interest in large-cap growth stocks
detracted from their performance. Despite this development, the Fund managed to
enjoy good performance from health care and technology stocks.
In the final three months of the period, the Fund enjoyed good performance from
stocks across a broad spectrum of industries, most notably basic materials,
technology, consumer cyclicals and capital goods. Investors gravitated toward
these securities due to their attractive valuations and a marked increase in
global economic activity, fueled mainly by improving conditions in Asia.
In May, the Fund came under pressure due to rising interest rates ignited by
stronger-than-expected economic reports. However, beginning in mid-June, rates
began trending lower following a positive Consumer Price Index report for May
and expectations of a modest hike in short-term rates by the Federal Reserve
Board.
The Fed delivered on those expectations by raising short-term interest rates
one-quarter of one percent on June 30th. More significant, the Fed adopted a
neutral bias towards interest rates, suggesting inflation is unlikely to be a
problem near-term. This surprise announcement lifted stock prices sharply,
enabling the Fund to finish the period on a positive note.
Where the Fund May Be Headed
Looking ahead, our outlook is optimistic for small stocks, in general, and our
holdings, in particular. While these stocks finished the period strongly, they
remain fundamentally attractive based on our research. Earnings growth prospects
for these small companies continue to be strong compared to the market.
Moreover, their valuation levels are still favorable, especially when compared
to their large-cap counterparts. Since further concerns over interest rates may
pose some near-term price volatility for secondary issues, stock selection will
play a significant role in achieving above-average investment results in the
months ahead.
38
<PAGE>
Chase Small Capitalization Fund
as of June 30, 1999
(unaudited)
Fund Facts
Objective Capital appreciation
Primary investments Common stocks of small companies
Suggested investment
time frame Long-term
Market benchmark S&P 600 Index
Lipper Funds Universe Small Company Funds Index
Inception date Premier Shares 4/1/93
Investor Shares 8/12/98
Newspaper symbol Sm Cap
Dividend Frequency Quarterly
Net Assets Premier Shares $76 Million
Investor Shares $1 Million
Investment Style/Market Cap
- -------|-------|-------
| | Large
- -------|-------|-------
| | Med.
- -------|-------|-------
X | | Small
- -------|-------|-------
Value Blend Growth
39
<PAGE>
Chase Small Capitalization Fund
as of June 30, 1999
(unaudited)
Life of Fund Performance*
This chart shows what the long-term growth would have been of a hypothetical
investment in the Chase Small Capitalization Fund compared to its key
benchmarks. This is where you see the Fund's long-term trend. This graph is for
illustrative purposes only.
<TABLE>
<CAPTION>
April June
1993 1994 1995 1996 1997 1998 1999
<S> <C> <C> <C> <C> <C> <C> <C>
Chase Small Capitalization Fund 10,000 9,550 11,450 15,900 19,540 22,382 22,377
Lipper Small Company Funds Index 10,311 10,543 13,281 17,273 18,361 21,210 21,617
S&P 600 Index 10,218 10,408 12,528 15,787 19,210 22,945 22,418
</TABLE>
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see the
Fund's short-term performance, which, as with the stock markets, tends to be
more volatile than the long-term trend.
Since Inception
1 Year 3 Years 5 Years (4/1/93)
------ ------- ------- ---------------
Premier Shares -0.01% 12.06% 18.57% 13.76%
Investor Shares -0.20% 11.99% 18.52% 13.72%
*Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
This chart represents the comparative performance of $10,000 invested in Premier
Shares of Chase Small Capitalization Fund, the Standard & Poor's 600 Index and
the Lipper Small Company Funds Index from April 1, 1993 to June 30, 1999. The
performance of the Fund assumes the reinvestment of all dividends and capital
gains and does not include a sales charge. The performance of the Index and the
Average do not include a sales charge and have been adjusted to reflect the
reinvestment of all dividends and capital gains on the securities included in
the benchmark. Premier Shares carry a $1 million minimum initial investment and
carry no sales charge.
Investor Shares were introduced on 8/12/98 and have a minimum initial investment
of $2,500. Please note internal expenses are greater for the Investor Shares
class. Performance measurements for the Investor Shares prior to 8/12/98 are
based on the predecessor Premier Shares class and do not include Investor Share
class expenses.
The Chase Small Capitalization Fund is the successor to the AVESTA Trust Small
Capitalization Fund. Effective 12/31/97, the AVESTA Trust was converted from a
Texas Trust to Mutual Fund Investment Trust ("MFIT"), a Massachusetts business
trust. As part of the conversion, the Fund transferred all of its assets to
Chase Small Capitalization Fund, a new investment portfolio of MFIT.
The Chase Small Capitalization Fund, unlike the AVESTA Small Capitalization Fund
is subject to certain diversification, distribution and other requirements
imposed under the Internal Revenue Code, which may impact performance.
The Lipper Small Company Funds Index represents the performance of the 30
largest small company funds. Lipper is an independent mutual fund performance
monitor whose results are based on total return and do not reflect a sales
charge.
The Standard and Poor's 600 Index is a broad-based index consisting of 600 small
capitalization companies. The index is unmanaged and reflects the reinvestment
of dividend. An individual cannot invest directly in an index.
Small Capitalization funds typically carry more risk than stock funds investing
in well-established blue chip companies since smaller companies generally have a
higher risk of failure. Historically smaller companies' stock has experienced a
greater degree of market volatility than the average stock.
40
<PAGE>
Chase Small Capitalization Fund
as of June 30, 1999
(unaudited)
How Much of the Fund Was Invested
Cash/Other (1.1%)
Investments (98.9%)
What the Fund Was Invested In
Percentage of Total Portfolio Investments
Technology (20.3%)
Cash Equivalent & Short Term Paper (2.1%)
Financial (12.3%)
Basic Materials (3.5%)
Energy (5.5%)
Transportation (2.3%)
Consumer Cyclical (24.3%)
Other (2.4%)
Health Care (14.2%)
Utilities (2.3%)
Capital Goods (10.8%)
Top Ten Equity Holdings
Comverse Technology, Inc. (3.1%) Designs, manufactures, markets, and supports
computer and telecommunications systems and software for multimedia
communications and information processing applications.
The Profit Recovery Group International, Inc. (2.9%) Provides accounts payable
and other recovery audit services to large retailers and other
transaction-intensive companies.
Optical Coating Laboratory, Inc (2.7%) Manufactures optical thin film coated
components used to manage light. The Company's products are used in computer
monitors, telecommunications systems and photocopiers.
Ames Department Stores, Inc. (2.5%) The Company sells apparel, housewares,
domestics, electronics, health and beauty care products, and related items.
Spartech Corp. (2.4%) Produces engineered thermoplastic materials, polymeric
compounds, and molded and profile products for a wide spectrum of manufacturing
customers.
PRI Automation, Inc. (2.3%) Supplies factory automation systems for
semiconductor manufacturers and original equipment suppliers.
MedQuist, Inc. (2.3%) Provides electronic transcription and data management
services to the healthcare industry. Through its software and transcriptions,
the company converts free-form medical dictation into electronically formatted
patient records.
Osteotech, Inc. (2.1%) Provides products and services primarily focused in the
repair and healing of the musculoskeletal system. The Company markets its
products and services to the orthopedic, neurological and general surgery
markets.
BJ's Wholesale Club, Inc. (2.1%) A merchandise wholesale club chain. The company
sells brand name food and general merchandise at discount prices.
Foodmaker, Inc. (2.0%) Owns, operates and franchises "Jack in the Box" fast food
restaurants. The Company is a fast food chain located principally in the western
and southwestern United States.
Top 10 equity holdings comprised 24.4% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
41
<PAGE>
Chase Small Capitalization Fund
Portfolio of Investments June 30, 1999 (unaudited)
(amounts in thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--98.0%
- --------------------------------------------------------------------------------
Common Stock--98.0%
-------------------
Aerospace--1.3%
46 AAR Corp. $1,040
------
Apparel--0.8%
30 Oshkosh B'Gosh, Inc., Class A 630
------
Automotive--2.2%
17 O'Reilly Automotive, Inc. * 841
35 Tower Automotive, Inc. * 890
------
1,731
------
Banking--7.4%
16 Bank United Corp., Class A 631
15 City National Corp. 569
34 Dime Community Bancorp., Inc. 787
58 First Sentinel Bancorp Inc. 513
32 First Washington Bancorp, Inc. 645
33 Flushing Financial Corp. 508
45 Harbor Florida Bancshares, Inc. 551
21 ISB Financial Corp. 444
25 ITLA Capital Corp. * 393
38 Klamath First Bancorp, Inc. 574
------
5,615
------
Biotechnology--2.1%
55 Osteotech, Inc. * 1,592
------
Broadcasting--1.0%
15 Metro Newtworks, Inc. * 803
------
Business Services--6.4%
26 Fair Issac & Co., Inc. 912
32 Iron Mountain Inc. * 927
38 Metzler Group, Inc. * 1,050
60 Personnel Group of America, Inc. * 604
23 Steiner Leisure Ltd.* 706
29 Superior Consultant Holdings Corp. * 706
------
4,905
------
See notes to financial statements.
42
<PAGE>
Chase Small Capitalization Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--(continued)
- --------------------------------------------------------------------------------
Chemicals--3.5%
38 Lyondell Chemical Co. $ 793
59 Spartech Corp. 1,874
------
2,667
------
Computer Networks--1.7%
26 Black Box Corp. * 1,311
------
Computer Software--2.7%
55 Activision Inc. * 794
27 Analytical Surveys Inc. * 672
17 Visio Corp. * 638
------
2,104
------
Computers/Computer Hardware--4.8%
32 Comverse Technology, Inc. * 2,382
38 National Computer Systems, Inc. 1,286
------
3,668
------
Construction Materials--2.1%
73 Dal-Tile International Inc. * 834
38 NCI Building Systems, Inc. * 819
------
1,653
------
Consumer Products--1.2%
30 Chattem, Inc. * 953
------
Distribution--3.6%
33 U.S. Foodservice, Inc. * 1,398
55 United Natural Foods, Inc. * 1,367
------
2,765
------
Electronics/Electrical Equipment--6.1%
24 Benchmark Electronics Inc. * 871
18 CTS Corp. 1,243
22 Hadco Corp. * 878
75 Lo-Jack Corp. * 626
51 Vishay Intertechnology, Inc. * 1,076
------
4,694
------
Engineering Services--1.2%
25 Jacobs Engineering Group, Inc. * 933
------
Entertainment/Leisure--1.9%
61 Cinar Films, Inc., Class B * 1,504
------
See notes to financial statements.
43
<PAGE>
Chase Small Capitalization Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--(continued)
- --------------------------------------------------------------------------------
Environmental Services--0.9%
32 U.S. Liquids Inc. * $ 664
------
Financial Services--2.9%
48 The Profit Recovery Group
International, Inc. * 2,247
------
Food/Beverage Products--0.8%
38 Worthington Foods, Inc. 634
------
Health Care/Health Care Services--10.5%
24 CLOSURE Medical Corp. * 707
30 Hologic, Inc. * 167
44 IMPATH, Inc. * 1,185
41 MedQuist, Inc. * 1,803
37 Molecular Devices Corp. * 1,382
34 Res-Care Inc. * 772
33 Ventana Medical Systems, NC * 627
29 Xomed Surgical Products, Inc. * 1,423
------
8,066
------
Insurance--2.1%
24 Delphi Financial Group, Inc., Class A * 873
38 Harleysville Group Inc. 775
------
1,648
------
Machinery & Engineering Equipment--3.4%
38 Gerber Scientific, Inc. 827
50 PRI Automation, Inc. * 1,803
------
2,630
------
Manufacturing--2.7%
25 Optical Coating Laboratory, Inc. 2,120
------
Oil & Gas--5.5%
20 Atwood Oceanics, Inc. * 622
49 Louis Dreyfus Natural Gas Corp. * 1,064
51 Plains Resources, Inc. * 967
57 Pride International, Inc. * 603
30 Range Resources Corp. 184
16 St. Mary Land & Exploration Co. 338
43 Vintage Petroleum, Inc. 464
------
4,242
------
See notes to financial statements.
44
<PAGE>
Chase Small Capitalization Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments--(continued)
- --------------------------------------------------------------------------------
Pharmaceuticals--1.7%
21 Advance Paradigm Inc. * $ 1,275
-------
Real Estate Investment Trust--1.6%
39 Alexandria Real Estate Equities, Inc. 1,213
-------
Retailing--8.9%
42 Ames Department Stores, Inc. * 1,935
53 BJ's Wholesale Club, Inc. * 1,592
31 Chico's FAS Inc. * 733
54 Foodmaker Inc. * 1,522
37 Lithia Motors, Inc. * 748
33 Stride Rite Corp. 340
-------
6,870
-------
Semi-Conductors--1.5%
76 Actel Corp. * 1,125
-------
Shipping/Transportation--2.3%
26 M.S. Carriers, Inc. * 756
59 MotivePower Industries, Inc. * 1,054
-------
1,810
-------
Telecommunications--0.3%
7 ANTEC Corp. * 218
-------
Textiles--0.9%
23 Mohawk Industries, Inc. * 685
-------
Utilities--2.0%
18 American States Water Co. 521
16 Laclede Gas Co. 369
30 UGI Corp. 606
3 United Water Resources, Inc. 69
-------
1,565
- --------------------------------------------------------------------------------
Total Long-Term Investments 75,580
(Cost $63,055)
- --------------------------------------------------------------------------------
See notes to financial statements.
45
<PAGE>
Chase Small Capitalization Fund
Portfolio of Investments June 30, 1999 (unaudited) (continued)
(amounts in thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Short-Term Investments--2.1%
- --------------------------------------------------------------------------------
Money Market Fund--1.8%
-----------------------
1,368 Fidelity Colchester Street Trust
Government Fund
(Cost $1,368) $ 1,368
-------
Principal
Amount
Repurchase Agreements--0.3%
---------------------------
$268 Credit Suisse First Boston Finance
(Secured by U.S. Treasury Bonds), in
a joint trading account at 5.15%,
dated 06/30/99 due 07/01/99;
Proceeds $268 268
(Cost $268)
- --------------------------------------------------------------------------------
Total Short-Term Investments 1,636
(Cost $1,636)
- --------------------------------------------------------------------------------
Total Investments--100.1% $77,216
(Cost $64,691)
- --------------------------------------------------------------------------------
Index:
*--Non-income producing security.
See notes to financial statements.
46
<PAGE>
Chase Funds
Statement of Assets and Liabilities As of June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
(amounts in thousands, except for per share amounts)
<TABLE>
<CAPTION>
Chase Chase Chase Chase
Chase Core Equity Equity Small
Balanced Equity Growth Income Capitalization
Fund Fund Fund Fund Fund
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment securities, at
value (Note 1) $88,379 $159,148 $245,137 $154,669 $77,216
Cash 21 1 114 -- 88
Receivables:
Investment securities sold -- -- -- -- 573
Trust shares sold 1,059 4,307 1,508 289 119
Interest and dividends 612 86 114 167 57
Expense reimbursement
from Distributor 6 6 12 6 5
------- -------- -------- -------- -------
Total Assets 90,077 163,548 246,885 155,131 78,058
------- -------- -------- -------- -------
LIABILITIES:
Payables:
Investment securities
purchased 826 -- 1,472 -- 391
Trust shares redeemed 352 269 1,211 1,203 398
Dividends payable -- -- -- 8 --
Accrued liabilities: (Note 2)
Investment advisory fees 40 81 136 82 32
Administration fees 10 19 28 18 9
Custodian 16 21 19 17 16
Other 53 67 54 57 52
------- -------- -------- -------- -------
Total Liabilities 1,297 457 2,920 1,385 898
------- -------- -------- -------- -------
NET ASSETS:
Paid in capital 73,024 114,789 149,858 88,532 69,431
Accumulated undistributed
net investment
income (loss) 2 6 (249) 11 (6)
Accumulated undistributed
(distributions in excess of)
net realized gain (loss)
on investments 99 3,694 50 7,045 (4,790)
Net unrealized appreciation
of investments 15,655 44,602 94,306 58,158 12,525
------- -------- -------- -------- -------
Net Assets $88,780 $163,091 $243,965 $153,746 $77,160
======= ======== ======== ======== =======
Shares of beneficial interest
outstanding ($.001 par
value; unlimited number
of shares authorized)
Premier Shares 2,390 5,382 4,044 2,995 3,657
Investor Shares 85 47 123 31 36
Net Asset Value, maximum
offering and redemption
price per share
Premier Shares $35.87 $30.04 $58.56 $50.81 $20.89
Investor Shares $35.82 $30.01 $58.43 $50.85 $20.85
Cost of Investments $72,724 $114,546 $150,831 $96,511 $64,691
------- -------- -------- -------- -------
</TABLE>
See notes to financial statements.
47
<PAGE>
Chase Funds
Statement of Operations For the six months ended June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
(amounts in thousands)
<TABLE>
<CAPTION>
Chase Chase Chase Chase
Chase Core Equity Equity Small
Balanced Equity Growth Income Capitalization
Fund Fund Fund Fund Fund
------ ------ ------ ------- ------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend .......................... $ 105 $ 598 $ 599 $ 1,021 $ 239
Interest .......................... 994 134 197 150 84
Foreign taxes withheld -- (3) -- (9) --
------ ------ ------ ------- ------
Total investment income ........ 1,099 729 796 1,162 323
------ ------ ------ ------- ------
EXPENSES: (Note 2)
Investment advisory fees .......... 270 474 782 522 247
Administration fees ............... 54 95 156 104 50
Distribution fees ................. 1 1 5 1 1
Custodian fees .................... 33 42 40 38 34
Printing and postage .............. 15 25 30 30 17
Professional fees ................. 16 17 19 18 17
Registration costs ................ 22 25 26 21 21
Transfer agent fees ............... 31 40 63 39 35
Trustees' fees .................... 1 2 4 3 1
Other ............................. 4 6 4 7 3
------ ------ ------ ------- ------
Total expenses ................. 447 727 1,129 783 426
------ ------ ------ ------- ------
Less amounts waived
(Note 2D) .................... 74 77 46 68 78
Less expenses borne
by Distributor ............... 13 20 38 19 18
------ ------ ------ ------- ------
Net expenses ................... 360 630 1,045 696 330
------ ------ ------ ------- ------
Net investment
income (loss) ................ 739 99 (249) 466 (7)
------ ------ ------ ------- ------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss)
on investments ................. (44) 3,394 558 7,045 (2,732)
Change in net unrealized
appreciation on
investments .................... 2,659 12,847 22,993 6,558 6,574
------ ------ ------ ------- ------
Net realized and
unrealized gain
on investments ................. 2,615 16,241 23,551 13,603 3,842
------ ------ ------ ------- ------
Net increase in net assets
from operations ................ $3,354 $16,340 $23,302 $14,069 $3,835
====== ======= ======= ======= ======
</TABLE>
See notes to financial statements.
48
<PAGE>
Chase Funds
Statements of Changes in Net Assets For the periods indicated (unaudited)
- --------------------------------------------------------------------------------
(amounts in thousands)
<TABLE>
<CAPTION>
Chase Chase Core Chase Equity
Balanced Fund Equity Fund Growth Fund
-----------------------------------------------------------
01/01/99 Year 01/01/99 Year 01/01/99 Year
Through Ended Through Ended Through Ended
06/30/99 12/31/98 06/30/99 12/31/98 06/30/99 12/31/98
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS:
Net investment income (loss) ............ $739 $ 1,085 $ 99 $ 263 $ (249) $ 65
Net realized gain (loss)
on investments ......................... (44) 2,397 3,394 3,962 558 6,296
Change in net unrealized appreciation
on investments ......................... 2,659 7,274 12,847 14,995 22,993 40,718
------- -------- -------- -------- -------- --------
Increase (decrease) in net assets
from operations ........................ 3,354 10,756 16,340 19,220 23,302 47,079
------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income ................... (737) (1,085) (93) (263) -- (65)
In excess of net investment income ...... -- (2) -- (3) -- (15)
Net realized gain on investment
transactions ........................... -- (2,053) -- (3,659) -- (5,914)
In excess of net realized gain on
investment transactions ................ -- -- -- -- -- --
------- -------- -------- -------- -------- --------
Total distributions to shareholders ..... (737) (3,140) (93) (3,925) -- (5,994)
------- -------- -------- -------- -------- --------
Increase from capital share
transactions (Note 5) ................... 27,130 15,058 58,284 21,868 40,338 62,510
------- -------- -------- -------- -------- --------
Total increase in net assets .......... 29,747 22,674 74,531 37,163 63,640 103,595
NET ASSETS:
Beginning of period ..................... 59,033 36,359 88,560 51,397 80,325 76,730
------- -------- -------- -------- -------- --------
End of period ...........................$88,780 $59,033 $163,091 $88,560 $243,965 $180,325
======= ======== ======== ======== ======== ========
Chase Equity Chase Small
Income Fund Capitalization Fund
--------------------------------------
01/01/99 Year 01/01/99 Year
Through Ended Through Ended
06/30/99 12/31/98 06/30/99 12/31/98
-------- -------- -------- ---------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS:
Net investment income (loss) ........ $ 466 $ 811 $ (7) $ (17)
Net realized gain (loss)
on investments ..................... 7,045 382 (2,732) 2,044
Change in net unrealized appreciation
on investments ..................... 6,558 22,275 6,574 (3,092)
-------- -------- ------- --------
Increase (decrease) in net assets
from operations .................... 14,069 23,468 3,835 (1,065)
-------- -------- ------- --------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income ............... (449) (811) -- --
In excess of net investment income .. -- (18) -- --
Net realized gain on investment
transactions ....................... -- (382) -- (2,044)
In excess of net realized gain on
investment transactions ............ -- (5) -- (2,080)
-------- -------- ------- --------
Total distributions to shareholders . (449) (1,216) -- (4,124)
-------- -------- ------- --------
Increase from capital share
transactions (Note 5) ............... 12,208 30,423 8,533 29,953
-------- -------- ------- --------
Total increase in net assets ...... 25,828 52,675 12,368 24,764
NET ASSETS:
Beginning of period ................. 127,918 75,243 64,792 40,028
-------- -------- ------- --------
End of period ....................... $153,746 $127,918 $77,160 $64,792
======== ======== ======= ========
</TABLE>
49
See notes to financial statements.
<PAGE>
Chase Funds
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies--Mutual Fund Investment
Trust (the "Trust") was organized on September 23, 1997 as a Massachusetts
Business Trust, and is registered under the Investment Company Act of 1940, as
amended, (the "1940 Act") as an open-end management investment company. Chase
Balanced Fund ("CBF"), Chase Core Equity Fund ("CCEF"), Chase Equity Growth Fund
("CEGF"), Chase Equity Income Fund ("CEIF"), and Chase Small Capitalization Fund
("CSCF"), collectively, the "Funds", are separate series of the Trust. Each Fund
offers Premier and Investor classes of shares.
All classes of shares have equal voting rights as to earnings, assets and voting
privileges, except that each class may bear different transfer agent,
distribution, and shareholder servicing expenses, and each class has exclusive
voting rights with respect to its distribution plan and shareholder servicing
agreement. Premier Shares may be purchased only by Financial Intermediaries who
are able to meet the minimum investment requirement.
The Funds were established on January 1, 1998 for the conversion of the AVESTA
Trust to the newly created Chase Funds of the Mutual Fund Investment Trust.
AVESTA Trust contributed securities and other assets (net of liabilities) in a
tax-free exchange for shares of the corresponding portfolio of the newly created
Funds. The Chase Manhattan Bank agreed to bear all costs related to conversion.
The following is a summary of significant accounting policies followed by the
Funds:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
A. Valuation of investments--Equity securities are valued at the last sale
price on the exchange on which they are primarily traded, including the
NASDAQ National Market. Securities for which sale prices are not available
and other over-the-counter securities are valued at the last quoted bid
price. Bonds and other fixed income securities (other than short-term
obligations), including listed issues, are valued on the basis of valuations
supplied by pricing services or by matrix pricing systems of a major dealer
in bonds. Short-term debt securities with 61 days or more to maturity at time
of purchase are valued, through the 61st day prior to maturity, at market
value based on quotations obtained from market makers or other appropriate
sources; thereafter, the value on the 61st day is amortized on a
straight-line basis over the remaining number of days to maturity. Short-term
investments with 60 days or less to maturity at time of purchase are valued
at amortized cost, which approximates market. Portfolio securities for which
there are no such quotations or valuations are valued at fair value as
determined in good faith by or at the direction of the Trustees.
B. Repurchase agreements--Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Funds of the Trust may transfer
uninvested cash balances into one or more joint trading accounts for the
purpose of investing in repurchase agreements. It is the Funds' policy that
repurchase agreements are fully collateralized by U.S. Treasury and
Government Agency securities. All collateral is held in one or more joint
trading accounts by the Trust's custodian bank, subcustodian, or a bank with
which the custodian bank has entered into a subcustodian agreement, or is
segregated in the Federal Reserve Book Entry System.
50
<PAGE>
Chase Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
In connection with transactions in repurchase agreements, if the seller
defaults and the value of the collateral declines, or if the seller enters an
insolvency proceeding, realization of the collateral by the Fund may be
delayed or limited.
C. Security transactions and investment income--Investment transactions are
accounted for on the trade date (the date the order to buy or sell is
executed). Securities gains and losses are calculated on the identified cost
basis. Interest income is accrued as earned. Dividend income is recorded on
the ex-dividend date.
D. Expenses--Expenses directly attributable to a Fund are charged to that
Fund; other expenses are allocated proportionately among the Funds within the
Trust in relation to the net assets of each Fund or on another reasonable
basis. Expenses directly attributable to a particular class are charged
directly to such class. In calculating the net asset value per share of each
class, investment income, realized and unrealized gains and losses and
expenses other than class specific expenses (including transfer agent fees)
are allocated daily to each class of shares based upon the proportion of net
assets of each class at the beginning of each day.
E. Federal income taxes--Each Fund is treated as a separate taxable entity
for Federal income tax purposes. Each Fund's policy is to comply with the
provisions of the Internal Revenue Code applicable to regulated investment
companies and to distribute to shareholders all of its distributable net
investment income and net realized gain on investments. In addition, each
Fund intends to make distributions as required to avoid excise taxes.
Accordingly, no provision for Federal income or excise tax is necessary.
F. Distributions to shareholders--Dividends and distributions paid to
shareholders are recorded on the ex-dividend date. The amount of dividends
and distributions from net investment income and net realized capital gains
is determined in accordance with Federal income tax regulations, which may
differ from generally accepted accounting principles. To the extent these
"book/tax" differences are permanent in nature (i.e., that they result from
other than timing of recognition--"temporary differences"), such amounts are
reclassified within the capital accounts based on their Federal tax-basis
treatment. Dividends and distributions which exceed net investment income or
net realized capital gains for financial reporting purposes but not for tax
purposes are reported as distributions in excess of net investment income or
net realized capital gains.
2. Fees and Other Transactions with Affiliates
A. Investment advisory fee--Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank ("Chase" or the "Advisor"), acts as the
Investment Advisor to the Funds. Chase is a direct wholly-owned subsidiary of
The Chase Manhattan Corporation. As Investment Advisor, Chase supervises the
investments of the Funds and for such services is paid a fee. The fee is
computed daily and paid monthly at an annual rate equal to 0.75% of each
Fund's average daily net assets. The Advisor voluntarily waived a portion of
its fees as outlined in Note 2.D.
Chase Texas, a wholly-owned subsidiary of The Chase Manhattan Corporation, is
the Sub-Investment Advisor to each Fund. Pursuant to the Sub-Investment
Advisory Agreement between Chase Texas and Chase, Chase Texas is entitled to
receive a fee payable by Chase from its advisory fee, at an annual rate equal
to 0.375% of average daily net assets.
B. Distribution and sub-administration fees--Pursuant to a Distribution and
Sub-Administration Agreement, Chase Fund Distributors, Inc. ("CFD" or the
"Distributor"), a wholly owned subsidiary of The BISYS Group, Inc., acts as
the Funds' distributor and sub-administrator.
51
<PAGE>
Chase Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
The Trust has adopted a Rule 12b-1 distribution plan for Investor Class
shares, which provides for the payment of distribution fees at an annual rate
of up to 0.25% of the average daily net assets attributable to Investor Class
shares of each of the Funds.
For the sub-administrative services it performs, CFD is entitled to receive a
fee from each Fund at an annual rate equal to 0.05% of the Fund's average
daily net assets.
The Distributor voluntarily waived some or all of its fees as outlined in
Note 2.D.
C. Administration fee--Pursuant to an Administration Agreement, Chase (the
"Administrator") provides certain administration services to the Trust. For
these services and facilities, the Administrator receives from the Funds a
fee computed at the annual rate equal to 0. 10% of the respective Fund's
average daily net assets.
D. Waivers of fees--For the six months ended June 30, 1999, the Investment
Advisor and Distributor voluntarily waived fees for each of the Funds as
follows (in thousands):
CBF CCEF CEGF CEIF CSCF
--- ---- ---- ---- ----
Investment Advisory ............. $73 $76 $41 $67 $77
Distribution .................... 1 1 5 1 1
--- --- --- --- ---
Total ........................... $74 $77 $46 $68 $78
=== === === === ===
E. Other--Certain officers of the Trust are officers of Chase Fund
Distributors, Inc. or of its parent corporation, The BISYS Group, Inc.
Chase provides portfolio accounting and custody services for the Funds.
Compensation for such services are presented in the Statement of Operations
as custodian fees.
3. Investment Transactions--For the six months ended June 30, 1999, purchases
and sales of investments (excluding short-term investments) were as follows
(in thousands):
CBF CCEF CEGF CEIF CSCF
--- ---- ---- ---- ----
Purchases (excluding
U.S. Government) .............. $14,730 $63,145 $51,939 $20,640 $23,070
Sales (excluding
U.S. Government) .............. 2,759 9,254 15,865 11,128 14,144
Purchases of
U.S. Government ............... 16,980 - - - -
Sales of U.S. Government ......... 2,210 - - - -
4. Federal Income Tax Matters--For Federal income tax purposes, the cost and
unrealized appreciation (depreciation) in value of the investment securities at
June 30, 1999, are as follows (in thousands):
CBF CCEF CEGF CEIF CSCF
--- ---- ---- ---- ----
Aggregate cost ................. $72,724 $114,546 $150,831 $96,511 $64,691
------- -------- -------- ------- -------
Gross unrealized
appreciation ................ $17,321 $ 47,103 $ 96,630 $59,944 $16,731
Gross unrealized
depreciation ................ (1,666) (2,501) (2,324) (1,786) (4,206)
------- -------- -------- ------- -------
Net unrealized appreciation .... $15,655 $ 44,602 $ 94,306 $58,158 $12,525
======= ======== ======== ======= =======
52
<PAGE>
Chase Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
5. Transactions in Shares of Beneficial Interest--Transactions in Shares of
Beneficial Interest were as follows for the periods presented (in thousands):
Chase Balanced Fund
-------------------------------------
1/1/99 Through Year Ended
Premier Shares 6/30/99 12/31/98
----------------- -----------------
Amount Shares Amount Shares
------ ------ ------ ------
Shares sold ............................ $32,350 916 $29,750 934
Shares issued in reinvestment
of distributions .................... 726 20 3,139 94
Shares redeemed ........................ (9,009) (255) (17,849) (562)
------- ----- ------- -----
Net increase in Trust
shares outstanding .................. $24,067 681 $15,040 466
======= ===== ======= =====
Chase Balanced Fund
-------------------------------------
1/1/99 Through 10/16/1998* Through
Investor Shares 6/30/99 12/31/98
----------------- -------------------
Amount Shares Amount Shares
------ ------ ------ ------
Shares sold ............................ $ 3,119 86 $17 1
Shares issued in reinvestment
of distributions .................... 11 -- 1 --
Shares redeemed ........................ (67) (2) -- --
------- ------ ---- ----
Net increase in Trust
shares outstanding .................. $ 3,063 84 $18 1
======= ====== ==== ====
Chase Core Equity Fund
-------------------------------------
1/1/99 Through Year Ended
Premier Shares 6/30/99 12/31/98
----------------- -----------------
Amount Shares Amount Shares
------ ------ ------ ------
Shares sold ............................ $73,493 2,623 $33,357 1,410
Shares issued in reinvestment
of distributions .................... 91 3 3,840 149
Shares redeemed ........................ (16,617) (583) (15,351) (639)
------- ------ ------- -----
Net increase in Trust
shares outstanding .................. $56,967 2,043 $21,846 920
======= ====== ======= =====
Chase Core Equity Fund
-------------------------------------
1/1/99 Through 9/10/98* Through
Investor Shares 6/30/99 12/31/98
----------------- -------------------
Amount Shares Amount Shares
------ ------ ------ ------
Shares sold ............................ $ 1,387 48 $21 1
Shares issued in reinvestment
of distributions .................... -- -- 1 --
Shares redeemed ........................ (70) (2) -- --
------- ---- ---- ----
Net increase in Trust
shares outstanding .................. $ 1,317 46 $22 1
======= ==== ==== ====
Chase Equity Growth Fund
-------------------------------------
1/1/99 Through Year Ended
Premier Shares 6/30/99 12/31/98
----------------- -----------------
Amount Shares Amount Shares
------ ------ ------ ------
Shares sold ............................ $53,703 961 $80,644 1,862
Shares issued in reinvestment
of distributions ..................... -- -- 5,872 116
Shares redeemed ........................ (18,770) (335) (25,217) (561)
------- ----- ------- -----
Net increase in Trust
shares outstanding ................... $34,933 626 $61,299 1,417
======= ===== ======= =====
53
<PAGE>
Chase Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
Chase Equity Growth Fund
-------------------------------------
1/1/99 Through 8/13/98* Through
Investor Shares 6/30/99 12/31/98
----------------- -------------------
Amount Shares Amount Shares
------ ------ ------ ------
Shares sold ............................ $ 5,528 99 $1,269 28
Shares issued in reinvestment
of distributions .................... -- -- 44 1
Shares redeemed ........................ (123) (2) (102) (3)
------- ---- ------ ----
Net increase in Trust
shares outstanding .................. $ 5,405 97 $1,211 26
======= ==== ====== ====
Chase Equity Income Fund
-------------------------------------
1/1/99 Through Year Ended
Premier Shares 6/30/99 12/31/98
----------------- -----------------
Amount Shares Amount Shares
------ ------ ------ ------
Shares sold ............................ $24,472 508 $49,582 1,208
Shares issued in reinvestment
of distributions .................... 432 9 1,190 28
Shares redeemed ........................ (14,082) (292) (20,417) (501)
------- ---- ------- -----
Net increase in Trust
shares outstanding .................. $10,822 225 $30,355 735
======= ==== ======= =====
Chase Equity Income Fund
-------------------------------------
1/1/99 Through 8/24/98* Through
Investor Shares 6/30/99 12/31/98
----------------- -------------------
Amount Shares Amount Shares
------ ------ ------ ------
Shares sold ............................ $ 1,614 33 $68 2
Shares issued in reinvestment
of distributions .................... 2 -- -- --
Shares redeemed ........................ (230) (4) -- --
------- ---- ---- ----
Net increase in Trust
shares outstanding .................. $ 1,386 29 $68 2
======= ==== ==== ====
Chase Small Capitalization Fund
-------------------------------------
1/1/99 Through Year Ended
Premier Shares 6/30/99 12/31/98
----------------- -----------------
Amount Shares Amount Shares
------ ------ ------ ------
Shares sold ............................ $15,128 792 $38,507 1,806
Shares issued in reinvestment
of distributions .................... -- -- 3,988 210
Shares redeemed ........................ (7,207) (378) (12,590) (611)
------- ----- ------- -----
Net increase in Trust
shares outstanding .................. $ 7,921 414 $29,905 1,405
======= ===== ======= =====
Chase Small Capitalization Fund
-------------------------------------
1/1/99 Through 8/12/98* Through
Investor Shares 6/30/99 12/31/98
----------------- -------------------
Amount Shares Amount Shares
------ ------ ------ ------
Shares sold ............................ $646 35 $45 3
Shares issued in reinvestment
of distributions .................... -- -- 3 --
Shares redeemed ........................ (34) (2) -- --
---- --- ---- ---
Net increase in Trust
shares outstanding .................. $612 33 $48 3
==== === ==== ===
*Commencement of offering of class of shares
54
<PAGE>
Chase Funds
Financial Highlights (unaudited) (throughout each period indicated)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Chase Balanced Fund
-----------------------------------------------------------------------------------
Premier Shares Investor Shares
----------------------------------------------------- ------------------------
01/01/99 For the Years Ended December 31, 01/01/99 10/16/98*
Through ----------------------------------------- Through Through
06/30/99 1998 1997 1996 1995 1994 06/30/99 12/31/98
-------- ---- ---- ---- ---- ---- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net Asset Value, Beginning of Period ...... $34.54 $29.26 $23.66 $21.25 $17.16 $17.56 $34.51 $31.87
------ ------ ------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income .................. 0.34 0.73 0.74 0.63 0.57 0.46 0.32@ 0.10
Net gains or losses in securities
(both realized and unrealized) ....... 1.33 6.53 4.86 1.78 3.52 (0.86) 1.30 3.95
------ ------ ------ ------ ------ ------ ------ ------
Total from Investment Operations ....... 1.67 7.26 5.60 2.41 4.09 (0.40) 1.62 4.05
------ ------ ------ ------ ------ ------ ------ ------
Less Distributions:
Dividends from net investment income ... 0.34 0.73 -- -- -- -- 0.31 0.16
Distributions from capital gains ....... -- 1.25 -- -- -- -- -- 1.25
------ ------ ------ ------ ------ ------ ------ ------
Total Distributions .................... 0.34 1.98 -- -- -- -- 0.31 1.41
------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Period ............ $35.87 $34.54 $29.26 $23.66 $21.25 $17.16 $35.82 $34.51
====== ====== ====== ====== ====== ====== ====== ======
Total Return .............................. 4.84% 25.15% 23.67% 11.31% 23.83% (2.27%) 4.71% 12.78%
Ratios/Supplemental Data:
Net Assets, End of Period (millions) ...... $86 $59 $36 $23 $21 $23 $3 $1
Ratios to Average Net Assets:#
Expenses ............................... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.24% 1.25%
Net investment income .................. 2.04% 2.32% 2.73% 2.82% 2.94% 2.69% 1.86% 1.84%
Expenses without waivers and
assumption of expenses ............... 1.20% 1.28% 1.28% 1.17% 1.17% 1.17% 4.48% 107.16%
Net investment income without waivers
and assumption of expenses ........... 1.84% 2.04% 2.45% 2.65% 2.77% 2.52% (1.38%) (104.07%)
Portfolio Turnover Rate ................... 7% 58% 64% 70% 98% 157% 7% 58%
</TABLE>
- ---------------
* Commencement of offering of class of shares
# Short periods have been annualized
@ Calculated using average shares outstanding
See notes to financial statements.
55
<PAGE>
Chase Funds
Financial Highlights (unaudited) (throughout each period indicated)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Chase Core Equity Fund
----------------------------------------------------------------------------------
Premier Shares Investor Shares
----------------------------------------------------------- ---------------------
01/01/99 For the Years Ended December 31, 01/01/99 9/10/98*
Through ----------------------------------------------- Through Through
06/30/99 1998 1997 1996 1995 1994 06/30/99 12/31/98
-------- ---- ---- ---- ---- ---- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net Asset Value, Beginning of Period ......... $26.52 $21.25 $15.94 $13.01 $10.36 $10.80 $26.52 $ 21.49
------ ------ ------ ------ ------ ------ ------ --------
Income from Investment Operations:
Net investment income ..................... 0.02 0.09 0.14 0.16 0.17 0.18 0.02 --
Net gains or losses in securities
(both realized and unrealized) ........... 3.52 6.44 5.17 2.77 2.48 (0.62) 3.48 6.22
------ ------ ------ ------ ------ ------ ------ --------
Total from Investment Operations .......... 3.54 6.53 5.31 2.93 2.65 (0.44) 3.50 6.22
------ ------ ------ ------ ------ ------ ------ --------
Less Distributions:
Dividends from net investment income ...... 0.02 0.09 -- -- -- -- 0.01 0.02
Distributions from capital gains .......... -- 1.17 -- -- -- -- -- 1.17
------ ------ ------ ------ ------ ------ ------ --------
Total Distributions ....................... 0.02 1.26 -- -- -- -- 0.01 1.19
------ ------ ------ ------ ------ ------ ------ --------
Net Asset Value, End of Period ............... $30.04 $26.52 $21.25 $15.94 $13.01 $10.36 $30.01 $ 26.52
====== ====== ====== ====== ====== ====== ====== ========
Total Return ................................. 13.35% 30.95% 33.33% 22.54% 25.53% (4.03%) 13.18% 29.08%
Ratios/Supplemental Data:
Net Assets, End of Period (millions) ......... $ 162 $ 89 $ 51 $ 29 $ 24 $ 21 $ 1 $ 1
Ratios to Average Net Assets:#
Expenses .................................. 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.24% 1.23%
Net investment income ..................... 0.16% 0.39% 0.74% 1.10% 1.44% 1.68% (0.11%) (0.03%)
Expenses without waivers and assumption
of expenses .............................. 1.12% 1.18% 1.20% 1.14% 1.17% 1.27% 9.46% 140.46%
Net investment income without waivers
and assumption of expenses ............... 0.04% 0.21% 0.54% 0.96% 1.27% 1.41% (8.33%) (139.26%)
Portfolio Turnover Rate ...................... 8% 32% 24% 29% 133% 129% 8% 32%
</TABLE>
- -------------
* Commencement of offering of class of shares
# Short periods have been annualized
See notes to financial statements.
56
<PAGE>
Chase Funds
Financial Highlights (unaudited) (throughout each period indicated)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Chase Equity Growth Fund
----------------------------------------------------------------------------------
Premier Shares Investor Shares
----------------------------------------------------------- ---------------------
01/01/99 For the Years Ended December 31, 01/01/99 9/10/98*
Through ----------------------------------------------- Through Through
06/30/99 1998 1997 1996 1995 1994 06/30/99 12/31/98
-------- ---- ---- ---- ---- ---- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net Asset Value, Beginning of Period ........ $52.36 $38.36 $27.95 $23.20 $18.44 $18.61 $52.30 $45.57
------ ------ ------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income .................... (0.06) 0.03 0.07 0.10 0.17 0.20 (0.06) (0.02)
Net gains or losses in securities
(both realized and unrealized) .......... 6.26 15.78 10.34 4.65 4.59 (0.37) 6.19 8.53
------ ------ ------ ------ ------ ------ ------ ------
Total from Investment Operations ......... 6.20 15.81 10.41 4.75 4.76 (0.17) 6.13 8.51
------ ------ ------ ------ ------ ------ ------ ------
Less Distributions:
Dividends from net investment income ..... -- 0.03 -- -- -- -- -- --
Distributions from capital gains ......... -- 1.78 -- -- -- -- -- 1.78
------ ------ ------ ------ ------ ------ ------ ------
Total Distributions ...................... -- 1.81 -- -- -- -- -- 1.78
------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Period .............. $58.56 $52.36 $38.36 $27.95 $23.20 $18.44 $58.43 $52.30
====== ====== ====== ====== ====== ====== ====== ======
Total Return ................................ 11.84% 41.38% 37.20% 20.52% 25.78% (0.90%) 11.72% 18.80%
Ratios/Supplemental Data:
Net Assets, End of Period (millions) ........ $ 237 $ 179 $ 74 $ 57 $ 46 $ 37 $ 7 $ 1
Ratios to Average Net Assets:#
Expenses ................................. 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.24% 1.25%
Net investment income .................... (0.23%) 0.05% 0.20% 0.41% 0.78% 1.07% (0.50%) (0.19%)
Expenses without waivers and
assumption of expenses .................. 1.04% 1.09% 1.11% 1.08% 1.10% 1.17% 3.58% 5.88%
Net investment income without waivers
and assumption of expenses .............. (0.27%) (0.04%) 0.09% 0.33% 0.68% 0.90% (2.84%) 4.82%
Portfolio Turnover Rate ..................... 8% 35% 35% 62% 99% 116% 8% 35%
</TABLE>
- -------------
* Commencement of offering of class of shares
# Short periods have been annualized
See notes to financial statements.
57
<PAGE>
Chase Funds
Financial Highlights (unaudited) (throughout each period indicated)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Chase Equity Income Fund
----------------------------------------------------------------------------------
Premier Shares Investor Shares
----------------------------------------------------------- ---------------------
01/01/99 For the Years Ended December 31, 01/01/99 9/10/98*
Through ----------------------------------------------- Through Through
06/30/99 1998 1997 1996 1995 1994 06/30/99 12/31/98
-------- ---- ---- ---- ---- ---- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net Asset Value, Beginning of Period ........ $46.14 $36.97 $28.21 $23.93 $17.90 $18.52 $46.23 $40.49
------ ------ ------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income .................... 0.16 0.33 0.40 0.43 0.44 0.39 0.09 0.06
Net gains or losses in securities
(both realized and unrealized) .......... 4.66 9.32 8.36 3.85 5.59 (1.01) 4.64 5.89
------ ------ ------ ------ ------ ------ ------ ------
Total from Investment Operations ......... 4.82 9.65 8.76 4.28 6.03 (0.62) 4.73 5.95
------ ------ ------ ------ ------ ------ ------ ------
Less Distributions:
Dividends from net investment income ..... 0.15 0.34 -- -- -- -- 0.11 0.07
Distributions from capital gains ......... -- 0.14 -- -- -- -- -- 0.14
------ ------ ------ ------ ------ ------ ------ ------
Total Distributions ...................... 0.15 0.48 -- -- -- -- 0.11 0.21
------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Period .............. $50.81 $46.14 $36.97 $28.21 $23.93 $17.90 $50.85 $46.23
====== ====== ====== ====== ====== ====== ====== ======
Total Return ................................ 10.46% 26.20% 31.50% 17.87% 33.72% (3.37%) 10.25% 14.70%
Ratios/Supplemental Data:
Net Assets, End of Period (millions) ........ $ 152 $ 128 $ 75 $ 63 $ 55 $ 39 $ 2 $ 1
Ratios to Average NetAssets:#
Expenses .................................... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.23% 1.18%
Net investment income ....................... 0.67% 0.82% 1.67% 1.67% 2.10% 2.13% 0.45% 0.57%
Expenses without waivers and assumption
of expenses ............................. 1.10% 1.10% 1.11% 1.07% 1.09% 1.12% 7.29% 37.61%
Net investment income without waivers and
assumption of expenses .................. 0.57% 0.72% 1.56% 1.60% 2.01% 2.01% (5.61%) (35.86%)
Portfolio Turnover Rate ..................... 8% 3% 14% 24% 11% 42% 8% 3%
</TABLE>
- -------------
* Commencement of offering of class of shares
# Short periods have been annualized
See notes to financial statements.
58
<PAGE>
Chase Funds
Financial Highlights (unaudited) (throughout each period indicated)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Chase Small Capitalization Fund
----------------------------------------------------------------------------------
Premier Shares Investor Shares
----------------------------------------------------------- ---------------------
01/01/99 For the Years Ended December 31, 01/01/99 9/10/98*
Through ----------------------------------------------- Through Through
06/30/99 1998 1997 1996 1995 1994 06/30/99 12/31/98
-------- ---- ---- ---- ---- ---- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net Asset Value, Beginning of Period ... $19.96 $21.78 $17.55 $13.41 $10.23 $10.89 $ 19.94 $ 19.86
------ ------ ------ ------ ------ ------ ------- -------
Income from Investment Operations:
Net investment income ............... -- (0.01) 0.02 0.01 0.05 0.06 -- (0.01)
Net gain or losses in securities
(both realized and unrealized) ..... 0.93 (0.46) 4.21 4.13 3.13 (0.72) 0.91 1.44
------ ------ ------ ------ ------ ------ ------- -------
Total from Investment Operations .... 0.93 (0.47) 4.23 4.14 3.18 (0.66) 0.91 1.43
------ ------ ------ ------ ------ ------ ------- -------
Less Distributions:
Distributions from capital gains .... -- 0.71 -- -- -- -- -- 0.71
In excess of net realized gain
on investment ...................... -- 0.64 -- -- -- -- -- 0.64
------ ------ ------ ------ ------ ------ ------- -------
Total Distributions ................. -- 1.35 -- -- -- -- -- 1.35
------ ------ ------ ------ ------ ------ ------- -------
Net Asset Value, End of Period ......... $20.89 $19.96 $21.78 $17.55 $13.41 $10.23 $ 20.85 $ 19.94
====== ====== ====== ====== ====== ====== ======= =======
Total Return ........................... 4.66% (1.83%) 24.08% 30.88% 31.14% (6.12%) 4.56% 7.56%
Ratios/Supplemental Data:
Net Assets, End of Period (millions) ... $ 76 $ 65 $ 40 $ 21 $ 13 $ 9 $ 1 $ 1
Ratios to Average Net Assets:#
Expenses ............................ 1.00% 1.00% 1.00% 1.22% 1.35% 1.45% 1.24% 1.24%
Net investment income ............... (0.02%) (0.03%) 0.13% 0.04% 0.46% 0.55% (0.25%) (0.18%)
Expenses without waivers and
assumption of expenses ............. 1.24% 1.26% 1.40% 1.37% 1.50% 1.60% 13.66% 74.81%
Net investment income without waivers
and assumption of expenses ......... (0.26%) (0.29%) (0.27%) (0.11%) 0.31% 0.40% (12.67%) (73.75%)
Portfolio Turnover Rate ................ 22% 45% 43% 68% 89% 120% 22% 45%
</TABLE>
- -------------
* Commencement of offering of class of shares
# Short periods have been annualized
See notes to financial statements.
59
<PAGE>
CHASE EQUITY FUNDS SEMI-ANNUAL REPORT
- -------------------------------------------------------------------------------
Investment Adviser, Administrator, This report is submitted
for the general information
Shareholder and Fund Servicing of the shareholders of the
Funds. It is not authorized
Agent and Custodian for distribution to prospective
investors in the Funds unless
Chase Funds Service Center preceded or accompanied by a
210 West 10th Street prospectus.
Kansas City, MO 64105
The financial information in
Legal Counsel this report has been taken
from the books and records of
Simpson Thacher & Bartlett the Funds without examination
425 Lexington Avenue by independent accountants, who
New York, NY 10017 express no opinion thereto.
Independent Accountants To obtain a prospectus for any
of the Chase Funds, call
PricewaterhouseCoopers LLP 1-888-5-CHASE-0. The prospectus
1177 Avenue of the Americas contains more complete information,
New York, NY 10036 including charges and expenses.
Please read it carefully before
Chase Funds are distributed you invest or send money.
by Chase Fund Distributors, Inc.
which is unaffiliated with The
Chase Manhattan Bank. Chase and
its respective affiliates receive
compensation from Chase Funds for
providing investment advisory and
other services.
(C) The Chase Manhattan Corporation, 1999, 2000.
All Rights Reserved.August 1999
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