MUTUAL FUND INVESTMENT TRUST, 485APOS, 1999-02-26

MUTUAL FUND INVESTMENT TRUST
485APOS, 1999-02-26

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<PAGE>

AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON FEBRUARY 26, 1999

FILE NOS. 33-9421
811-5526
=============================================================================

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

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

FORM N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 \x\

PRE-EFFECTIVE AMENDMENT NO. \ \

POST-EFFECTIVE AMENDMENT NO. 24 \x\

AND/OR

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 \x\

AMENDMENT NO. 28 \x\

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

MUTUAL FUND INVESTMENT TRUST (formerly AVESTA Trust)
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)

One Chase Manhattan Plaza, Third Floor
New York, New York 10081
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE) (ZIP CODE)

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

REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (212) 492-1600

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

George Martinez, Esq.
BISYS Fund Services, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
(NAME AND ADDRESS OF AGENT FOR SERVICE)

COPY TO:
GARY S. SCHPERO, ESQ.
SIMPSON THACHER & BARTLETT
425 LEXINGTON AVENUE

NEW YORK, NEW YORK 10017

It is proposed that this filing will become effective:

\ \ immediately upon filing pursuant \ \ on pursuant to paragraph (b)
to paragraph (b)

\ \ 60 days after filing pursuant to \X\ on April 30, 1999 pursuant to
paragraph (a)(1) paragraph (a)(1)

1
<PAGE>

\ \ 75 days after filing pursuant \ \ on pursuant to paragraph
to paragraph (a)(2) (a)(2) of Rule 485

If appropriate, check the following box:

\ \ this post-effective amendment designates a new effective date for a
previously filed post-effective amendment.

Registrant has previously elected, pursuant to Rule 24f-2 under the
Investment Company Act of 1940, to register an indefinite number of units of
beneficial interest for sale under the Securities Act of 1933. Registrant's
Rule 24f-2 Notice for the fiscal year 1997 was filed on or about March 26, 1998.
================================================================================

<PAGE>

MUTUAL FUND INVESTMENT TRUST
Registration Statement on Form N-1A

CROSS-REFERENCE SHEET
Pursuant to Rule 495(a) Under the Securities Act of 1933

Item Number
Form N-1A, Statement of Additional
Part A Prospectus Caption Information Caption

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

Captions apply to all
Prospectuses except where
indicated in parenthesis.
Parenthesis indicate captions
for Institutional Shares
Prospectuses

1 Front Cover Page *

2(a) Expense Summary *

(b) Not Applicable *
3(a) Financial Highlights *
(b) Not Applicable *
(c) Performance Information *
4(a)(b) Other Information Concerning *
the Fund; Fund Objective;
Investment Policies
(c) Fund Objective; Investment *
Policies
(d) Not Applicable *
5(a) Management *
(b) Management *
(c)(d) Management; Other Information *
Concerning the Fund
(e) Other Information Concerning *
the Fund; Back Cover Page
(f) Other Information Concerning *
the Fund
(g) Not Applicable *
5A Not Applicable *
6(a) Other Information Concerning *
the Fund
(b) Not Applicable *
(c) Not Applicable *

3
<PAGE>

Item Number
Form N-1A, Statement of Additional
Part A Prospectus Caption Information Caption
---------- ------------------ -----------------------

(d) Not Applicable *

(e)(f) About Your Investment; How to *
Buy, Sell and Exchange Shares (How to Purchase, Redeem and
Exchange Shares); How Distributions Are Made; Tax
Information; Other Information Concerning the Fund.

(f) How Distributions are Made; *
Tax Information
(g) How Distributions are Made; Tax Matters
Tax Information
(h) About Your Investment; How to *
Buy, Sell and Exchange Shares
(How to Purchase, Redeem and
Exchange Shares); Other
Information Concerning the
Fund
7(a) How to Buy, Sell and Exchange *
Shares (How to Purchase,
Redeem and Exchange Shares)
(b) How the Fund Values its *
Shares; How to Buy, Sell and
Exchange Shares (How to
Purchase, Redeem and Exchange
Shares)
(c) Not Applicable *
(d) How to Buy, Sell and Exchange *
Shares (How to Purchase,
Redeem and Exchange Shares)
(e) Management; Other Information *
Concerning the Fund
(f) Other Information Concerning *
the Fund
8(a) How to Buy, Sell and Exchange *
Shares (How to Purchase,
Redeem and Exchange Shares)
(b) How to Buy, Sell and Exchange *
Shares (How to Purchase,
Redeem and Exchange Shares)

<PAGE>

Item Number
Form N-1A, Statement of Additional
Part A Prospectus Caption Information Caption
---------- ------------------ -----------------------

(c) How to Buy, Sell and Exchange *
Shares (How to Purchase,
Redeem and Exchange Shares)
(d) How to Buy, Sell and Exchange *
Shares (How to Purchase,
Redeem and Exchange Shares)
9 Not Applicable *
10 * Front Cover Page
11 * Front Cover Page

12 * Not Applicable
13(a)(b) Fund Objective; Investment Investment Policies and
Policies Restrictions

14(c) * Management of the Trust and
Funds or Portfolios

(b) * Not Applicable
(c) * Management of the Trust and
Funds or Portfolios

15(a) * Not Applicable
(b) * General Information

16(a) Management Management of the Trust and
Funds or Portfolios
(b) Management Management of the Trust and
Funds or Portfolios

(c) Other Information Concerning Management of the Trust and
the Fund Funds or Portfolios
(d) Management Management of the Trust and
Funds or Portfolios

(e) * Not Applicable

(f) How to Buy, Sell and Exchange Management of the Trust and
Shares (How to Purchase, Funds or Portfolios
Redeem and Exchange Shares);
Other Information Concerning
the Fund
(g) * Not Applicable

(h) * Management of the Trust and
Funds or Portfolios;
Independent Accountants
(i) * Not Applicable

<PAGE>

Item Number
Form N-1A, Statement of Additional
Part A Prospectus Caption Information Caption
---------- ------------------ -----------------------

17 Investment Policies Investment Policies and
Restrictions
18(a) Other Information Concerning General Information
the Fund; How to Buy, Sell
and Exchange Shares (How to
Purchase, Redeem and Exchange
Shares)

(b) * Not Applicable

19(a) How to Buy, Sell and Exchange Purchases, Redemptions and
Shares (How to Purchase, Exchanges
Redeem and Exchange Shares)
(b) How the Fund Values its Determination of Net Asset
Shares; How to Buy, Sell and Value
Exchange Shares (How to
Purchase, Redeem and Exchange
Shares)

21(a) * Management of the Trust and
Funds or Portfolios

(b) * Management of the Trust and
Funds or Portfolios
(c) * Not Applicable

22 * Performance Information
23 * Not Applicable

<PAGE>

The Chase Manhattan Bank

Chase Funds, Premier Shares
Draft 3

February 17, 1999

[Front cover page]

Chase Funds

Prospectus
April 30, 1999

Chase Money Market Fund
Chase Short-Intermediate Term U.S. Government Securities Fund
Chase U.S. Government Securities Fund
Chase Intermediate Term Bond Fund
Chase Income Fund
Chase Balanced Fund
Chase Equity Income Fund
Chase Core Equity Fund
Chase Equity Growth Fund
Chase Small Capitalization Fund

Premier Class Shares

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

Page 1 of 72
<PAGE>

Contents

Information about the Funds x
Chase Money Market Fund x
Chase Short-Intermediate Term
U.S. Government Securities Fund x
Chase U.S. Government Securities Fund x
Chase Intermediate Term Bond Fund x
Chase Income Fund x
Chase Balanced Fund x
Chase Equity Income Fund
Chase Core Equity Fund x
Chase Equity Growth Fund x
Chase Small Capitalization Fund x

How your account works x
Buying Fund shares x
Selling Fund shares x
Exchanging Fund shares x
Other information concerning the Funds x

Distributions and taxes x

Financial highlights x

Page 2 of 72
<PAGE>

Information about the Funds

Chase Money Market Fund

The Fund's objective

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

The Fund's main investment strategy

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

The Fund principally invests in:
o high quality commercial paper and other short-term debt securities,
including floating and variable rate demand notes of U.S. and foreign
corporations
o debt securities issued or guaranteed by qualified banks. These are:
o U.S. banks with more than $1 billion in total assets and foreign
branches of these banks
o foreign banks with the equivalent of more than $10 billion in total
assets and which have branches or agencies in the U.S.
o other U.S. or foreign commercial banks which the Fund's advisers judge
to have comparable credit standing
o securities issued or guaranteed by the U.S. Government, its agencies or
authorities
o asset-backed securities
o repurchase agreements.

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

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

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

Page 3 of 72
<PAGE>

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

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

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

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

The main investment risks

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

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

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

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

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

Page 4 of 72
<PAGE>

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

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

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

The Fund's past performance

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

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

Year-by-year returns

[bar chart goes here]
Horizontal axis: Year

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Vertical axis: Return (%)

8.91 7.80 6.01 3.51 2.60 3.77 5.57 5.06 5.18 --

Page 5 of 72
<PAGE>

Best quarter: 2.28%, 2nd quarter, 1989
Worst quarter: 0.44%, 1st quarter, 1998

Average annual total returns
For the periods ending December 31, 1998:

<TABLE>
<CAPTION>
Past 1 year Past 5 years Past 10 years
<S> <C> <C> <C>
Premier Class shares --% --% --%
</TABLE>

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

Shareholder fees (fees paid directly from your investment):
None

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

Total
annual
Fund
Management Distribution Other operating
fee (12b-1) fees expenses expenses
Premier Class 0.30% None 0.20% 0.50%
shares

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

Page 6 of 72
<PAGE>

Example
This example helps you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. As with all other prospectuses, the example
assumes:
o you invest $10,000
o you sell all your shares at the end of the period
o your investment has a 5% return each year, and
o the Fund's operating expenses remain the same as shown above.

Number of years: 1 3 5 10
Costs: $50 $160 $280 $630

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 7 of 72
<PAGE>

Chase Short-Intermediate Term U.S. Government Securities Fund

The Fund's objective

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

The Fund's main investment strategy

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

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

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

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

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

Page 8 of 72
<PAGE>

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

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

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

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

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

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

The main investment risks

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

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

Page 9 of 72
<PAGE>

sensitive to interest rate changes. Mortgage-related securities are subject to
scheduled and unscheduled principal payments as property owners pay down or
prepay their mortgages. As these payments are received, they must be reinvested
when interest rates may be lower than on the original mortgage security. When
interest rates are rising, the value of fixed-income securities with prepayment
features are likely to decrease as much or more than securities without
prepayment features. In addition, the value of mortgage-related securities with
prepayment features may not increase as much as other fixed-income securities
when interest rates fall.

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

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

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

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

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

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

Page 10 of 72
<PAGE>

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

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

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

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

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

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

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

The Fund's past performance

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

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

The calculations assume that all dividends and distributions are reinvested in
the Fund. Some of the companies that provide services to the Fund have agreed
not to collect some

Page 11 of 72
<PAGE>

expenses and to reimburse others. Without these agreements, the performance
figures would be lower than shown.

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

Year-by-year returns

[bar chart goes here]

Horizontal axis: Year

1993 1994 1995 1996 1997 1998

Vertical axis: Return (%)

2.43 -1.05 12.01 2.68 6.30 --

Best quarter: 4.07, 2nd quarter, 1995
Worst quarter: -1.35%, 1st quarter, 1994

Average annual total returns
For the periods ending December 31, 1998:

<TABLE>
<CAPTION>
Past 1 year Past 5 years Past 10 years
<S> <C> <C> <C>
Premier Class shares --% --% --%
Lehman 1-3 Year --% --% --%
Government Index
Lehman Intermediate --% --% --%
Government Index
</TABLE>

Fees and expenses

Page 12 of 72
<PAGE>

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

Shareholder fees (fees paid directly from your investment):
None

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

Total
annual
Fund
Management Distribution Other operating
fee (12b-1) fees expenses expenses
Premier Class shares 0.50% None 0.25% 0.75%

Example
This example helps you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. As with all other prospectuses, the example
assumes:

o you invest $10,000
o you sell all your shares at the end of the period
o your investment has a 5% return each year, and
o the Fund's operating expenses remain the same as shown above.

<TABLE>
<S> <C> <C> <C> <C>
Number of years: 1 3 5 10
Costs: $80 $240 $420 $930
</TABLE>

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 13 of 72
<PAGE>

Chase U.S. Government Securities Fund

The Fund's objective

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

The Fund's main investment strategy

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

Page 14 of 72
<PAGE>

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

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

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

The main investment risks

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

Page 15 of 72
<PAGE>

income securities with prepayment features are likely to
decrease as much or more than securities without prepayment features. In
addition, the value of mortgage-related securities with prepayment features may
not increase as much as other fixed-income securities when interest rates fall.

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

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

Page 16 of 72
<PAGE>

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

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

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

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

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

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

The Fund's past performance

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

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

Page 17 of 72
<PAGE>

Year-by-year returns

[bar chart goes here]

Horizontal axis: Year

1993 1994 1995 1996 1997 1998

Vertical axis: Return (%)

9.12 -8.39 30.11 -1.89 9.55 --

Best quarter: 10.36%, 2nd quarter, 1995
Worst quarter: -6.79%, 1st quarter, 1996

Average annual total returns
For the periods ending December 31, 1998:

<TABLE>
Past 1 year Past 5 years Since inception (4/1/93)
<S> <C> <C> <C>
Premier Class shares --% --% --%
Lehman Brothers --% --% --%
Government Index
</TABLE>

Page 18 of 72
<PAGE>

Fees and expenses

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

Shareholder fees (fees paid directly from your investment):
None

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

Total
annual
Fund
Management Distribution Other operating
fee (12b-1) fees expenses expenses
Premier Class shares 0.50% None 0.25% 0.75%

Number of years: 1 3 5 10
Costs: $80 $240 $420 $930

Page 19 of 72
<PAGE>

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 20 of 72
<PAGE>

Chase Intermediate Term Bond Fund

The Fund's objective

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

The Fund's main investment strategy

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

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

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

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

Page 21 of 72
<PAGE>

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

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

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

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

The main investment risks

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

Page 22 of 72
<PAGE>

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

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

The Fund's performance will depend on the credit quality of its investments.
Securities which are rated Baa by Moody's or BBB by S&P may have fewer
protective provisions

Page 23 of 72
<PAGE>

and are generally more risky than higher rated securities. The issuer may have
trouble making principal and interest payments when difficult economic
conditions exist.

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

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

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

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

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

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

The Fund's past performance

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

The Lehman Brothers Intermediate Government/Corporate Index consists of the
Lehman Brothers Government and Corporate indices, with maturities of one to 10
years. It includes U.S. Treasury and agency securities, and corporate and Yankee
bonds. The Lehman Brothers Aggregate Index consists of the Lehman Brothers
Government/Corporate Index and the Lehman Brothers Mortgage-Backed Securities
Index. It includes U.S. Treasury and agency securities, corporate bonds and
mortgage-backed securities.

Page 24 of 72
<PAGE>

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

Year-by-year returns

[bar chart goes here]

Horizontal axis: Year

1994 1995 1996 1997 1998

Vertical axis: Return (%)

0.08 16.79 1.86 7.26 --

Best quarter: 5.99%, 2nd quarter, 1995
Worst quarter: -2.15%, 1st quarter, 1996

Average annual total returns
For the periods ending December 31, 1998:

<TABLE>
<CAPTION>
Past 1 year Past 5 years Since inception (10/3/94)
<S> <C> <C> <C>
Premier Class shares --% --% --%
Lehman Brothers --% --% --%
Government/Corporate Index
Lehman Aggregate Index --% --% --%

Fees and expenses
</TABLE>

Page 25 of 72
<PAGE>

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

Shareholder fees (fees paid directly from your investment):
None

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

Total
annual
Fund
Management Distribution Other operating
fee (12b-1) fees expenses expenses
Premier Class shares 0.50% None 0.25% 0.75%

Number of years: 1 3 5 10
Costs: $192 $594 $1,021 $2,212

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 26 of 72
<PAGE>

Chase Income Fund

The Fund's objective

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

The Fund's main investment strategy

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

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

Page 27 of 72
<PAGE>

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

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

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

The main investment risks

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

Page 28 of 72
<PAGE>

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

The Fund's performance will depend on the credit quality of its investments.
Securities which are rated Baa by Moody's or BBB by S&P may have fewer
protective provisions

Page 29 of 72
<PAGE>

and are generally more risky than higher rated securities. The issuer may have
trouble making principal and interest payments when difficult economic
conditions exist.

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

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

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

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

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

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

The Fund's past performance

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

The Lehman Brothers Government/Corporate Index is an unmanaged index that
consists of the Lehman government and corporate bond indices, including U.S.
Treasury and agency securities, and corporate and Yankee bonds.

Page 30 of 72
<PAGE>

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

Year-by-year returns

[bar chart goes here]

<TABLE>
<CAPTION>
Horizontal axis: Year

<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

<CAPTION>
Vertical axis: Return (%)

Best quarter: 6.34%, 2nd quarter, 1989
Worst quarter: -3.38%, 1st quarter, 1994

Average annual total returns
For the periods ending December 31, 1998:

<TABLE>
<CAPTION>
Past 1 year Past 5 years Past 10 years
<S> <C> <C> <C>
Premier Class shares --% --% --%
Lehman Brothers --% --% --%
Government/Corporate Index
</TABLE>

Fees and expenses

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

Shareholder fees (fees paid directly from your investment):
None

Page 31 of 72
<PAGE>

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

Total
annual
Fund
Management Distribution Other operating
fee (12b-1) fees expenses expenses
Premier Class shares 0.50% None 0.25% 0.75%

Number of years: 1 3 5 10
Costs: $166 $514 $887 $1,933

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 32 of 72
<PAGE>

Chase Balanced Fund

The Fund's objective

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

The Fund's main investment strategy

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

o an active equity management style that focuses on strong earnings momentum
and profitability within the universe of growth-oriented stocks, and
o an active fixed income management style that focuses primarily on domestic
fixed income securities.

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

The Fund seeks growth of capital by normally investing 30% to 70% of its total
assets in equity-based securities. The Fund invests primarily in companies with
one or more of the following characteristics:
o a projected rate of earnings growth that's equal to or greater than the
equity markets
o a return on assets and equity that's equal to or greater than the equity
markets
o above-average price/earnings ratios
o below-average dividend yield
o above-average market volatility
o a market capitalization of more than $500 million.

Market capitalization is the total market value of a company's shares. Equity
securities include common stocks and preferred stocks and securities that are
convertible into common stocks.

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

The Fund seeks current income by normally investing at least 25% of its total
assets in U.S. government securities and other fixed income securities,
including mortgage-backed

Page 33 of 72
<PAGE>

securities. The Fund invests in fixed income securities only if they are rated
as investment grade or the adviser considers them to be comparable to investment
grade.

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

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

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

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

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

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

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

Page 34 of 72
<PAGE>

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

The main investment risks

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

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

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

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

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

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

Page 35 of 72
<PAGE>

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

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

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

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

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

Page 36 of 72
<PAGE>

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

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

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

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

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

If the Fund invests a substantial portion of its assets in money market
instruments, repurchase agreements and U.S. Government obligations, it could
reduce the Fund's potential return.

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

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

The Fund's past performance

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

The S&P 500 Index is an unmanaged, broad-based index of 500 companies and is
generally considered to represent the U.S. market. The Lehman Brothers

Page 37 of 72
<PAGE>

Government/Corporate Index is an unmanaged index that consists of the Lehman
government and corporate bond indices, including U.S. Treasury and agency
securities, and corporate and Yankee bonds.

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

Year-by-year returns

[bar chart goes here]

<TABLE>
<CAPTION>
Horizontal axis: Year

<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

<CAPTION>
Vertical axis: Return (%)

Best quarter: 12.12%, 2nd quarter, 1997
Worst quarter: -5.37%, 3rd quarter, 1990

Average annual total returns
For the periods ending December 31, 1998:

<TABLE>
<CAPTION>
Past 1 year Past 5 years Past 10 years
<S> <C> <C> <C>
Premier Class shares --% --% --%
S&P 500 Index --% --% --%
Lehman Brothers --% --% --%
Government/Corporate Index
</TABLE>

Page 38 of 72
<PAGE>

Fees and expenses

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

Shareholder fees (fees paid directly from your investment):
None

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

Total
annual
Fund
Management Distribution Other operating
fee (12b-1) fees expenses expenses
Premier Class shares 0.75% None 0.25% 1.00%

Number of years: 1 3 5 10
Costs: $100 $320 $550 $1,220

Page 39 of 72
<PAGE>

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 40 of 72
<PAGE>

Chase Equity Income Fund

The Fund's objective

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

The Fund's main investment strategy

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

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

The Fund may also invest in investment grade debt securities. When the adviser
wishes to limit the Fund's equity investments because of market conditions, the
Fund may invest any amount in investment grade debt securities.

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

Page 41 of 72
<PAGE>

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

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

The main investment risks

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

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

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

Page 42 of 72
<PAGE>

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

If the Fund invests a substantial portion of its assets in money market
instruments, repurchase agreements and U.S. Government obligations, it could
reduce the Fund's potential return.

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

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

The Fund's past performance

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

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

Page 43 of 72
<PAGE>

Year-by-year returns

[bar chart goes here]

<TABLE>
<CAPTION>
Horizontal axis: Year

<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

<CAPTION>
Vertical axis: Return (%)

Best quarter: 17.04%, 2nd quarter, 1997
Worst quarter: -9.88%, 3rd quarter, 1990

Average annual total returns
For the periods ending December 31, 1998:

<TABLE>
<CAPTION>
Past 1 year Past 5 years Past 10 years
<S> <C> <C> <C>
Premier Class shares --% --% --%
S&P 500 Index --% --% --%
</TABLE>

Fees and expenses

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

Shareholder fees (fees paid directly from your investment):
None

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

Total
annual

Page 44 of 72
<PAGE>

Fund
Management Distribution Other operating
fee (12b-1) fees expenses expenses
Premier Class shares 0.75% None 0.25% 1.00%

Number of years: 1 3 5 10
Costs: $100 $320 $550 $1,220

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 45 of 72
<PAGE>

Chase Core Equity Fund

The Fund's objective

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

The Fund's main investment strategy

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

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

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

Page 46 of 72
<PAGE>

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

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

The main investment risks

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

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

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

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

Page 47 of 72
<PAGE>

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

If the Fund invests a substantial portion of its assets in money market
instruments, repurchase agreements and U.S. Government obligations, it could
reduce the Fund's potential return.

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

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

The Fund's past performance

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

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

Year-by-year returns

[bar chart goes here]

Page 48 of 72
<PAGE>

Horizontal axis: Year

1993 1994 1995 1996 1997 1998

Vertical axis: Return (%)

7.95 -4.03 25.53 22.54 33.33 --

Best quarter: 17.17%, 2nd quarter, 1997
Worst quarter: -5.54%, 1st quarter, 1994

Average annual total returns
For the periods ending December 31, 1998:

<TABLE>
<CAPTION>
Past 1 year Past 5 years Since inception (4/1/93)
<S> <C> <C> <C>
Premier Class shares --% --% --%
S&P 500 Index --% --% --%
</TABLE>

Fees and expenses

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

Shareholder fees (fees paid directly from your investment):
None

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

Total
annual
Fund
Management Distribution Other operating
fee (12b-1) fees expenses expenses
Premier Class shares 0.75% None 0.25% 1.00%

[Footnote]

Page 49 of 72
<PAGE>

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

Number of years: 1 3 5 10
Costs: $100 $320 $550 $1,220

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 50 of 72
<PAGE>

Chase Equity Growth Fund

The Fund's objective

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

The Fund's main investment strategy

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

The Fund seeks capital appreciation by emphasizing the growth sectors of the
economy. It looks for companies with one or more of the following
characteristics:
o a projected earnings growth rate that's greater than or equal to the equity
markets in general
o a return on assets and return on equity equal to or greater than the equity
markets
o above market average price-earnings ratios
o below-average dividend yield
o above-average market volatility
o a market capitalization of more than $500 million.

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

Page 51 of 72
<PAGE>

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

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

The main investment risks

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

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

Page 52 of 72
<PAGE>

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

If the Fund invests a substantial portion of its assets in money market
instruments, repurchase agreements and U.S. Government obligations, it could
reduce the Fund's potential return.

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

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

The Fund's past performance

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

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

Page 53 of 72
<PAGE>

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

Year-by-year returns

[bar chart goes here]

<TABLE>
<CAPTION>
Horizontal axis: Year

<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

<CAPTION>
Vertical axis: Return (%)

Best quarter: 20.13%, 2nd quarter, 1997
Worst quarter: -15.53%, 3rd quarter, 1990

Average annual total returns
For the periods ending December 31, 1998:

<TABLE>
<CAPTION>
Past 1 year Past 5 years Past 10 years
<S> <C> <C> <C>
Premier Class shares --% --% --%
S&P 500 Index --% --% --%
S&P Barra Growth Index --% --% --%
</TABLE>

Page 54 of 72
<PAGE>

Fees and expenses

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

Shareholder fees (fees paid directly from your investment):
None

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

Total
annual
Fund
Management Distribution Other operating
fee (12b-1) fees expenses expenses
Premier Class shares 0.75% None 0.25% 1.00%

Number of years: 1 3 5 10
Costs: $100 $320 $550 $1,220

Page 55 of 72
<PAGE>

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 56 of 72
<PAGE>

Chase Small Capitalization Fund

The Fund's objective

The Fund aims to provide capital appreciation.

The Fund's main investment strategy

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

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

Page 57 of 72
<PAGE>

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

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

The main investment risks

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

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

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

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

Page 58 of 72
<PAGE>

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

If the Fund invests a substantial portion of its assets in money market
instruments, repurchase agreements and U.S. Government obligations, it could
reduce the Fund's potential return.

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

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

The Fund's past performance

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

The calculations assume that all dividends and distributions are reinvested in
the Fund. Some of the companies that provide services to the Fund have agreed
not to collect some

Page 59 of 72
<PAGE>

expenses and to reimburse others. Without these agreements, the performance
figures would be lower than shown.

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

Year-by-year returns

[bar chart goes here]

Horizontal axis: Year

1993 1994 1995 1996 1997 1998

Vertical axis: Return (%)

8.94 -6.12 31.14 30.88 24.08 --

Best quarter: 17.04%, 2nd quarter, 1997
Worst quarter: -6.57%, 1st quarter, 1994

Average annual total returns
For the periods ending December 31, 1998:

<TABLE>
<CAPTION>
Past 1 year Past 5 years Since inception (4/1/93)
<S> <C> <C> <C>
Premier Class shares --% --% --%
S&P 500 Index --% --% --%
S&P 600 Index --% --% --%
</TABLE>

Fees and expenses

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

Shareholder fees (fees paid directly from your investment):
None

Page 60 of 72
<PAGE>

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

<TABLE>
<CAPTION>
Total
annual
Fund
operating
Management fee Distribution Other expenses
(12b-1) fees expenses
<S> <C> <C> <C> <C>
Premier Class shares 0.75% None 0.25% 1.00%
</TABLE>

Number of years: 1 3 5 10
Costs: $100 $320 $550 $1,220

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 61 of 72
<PAGE>

Fund management

The investment adviser

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

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

- --------------------------------------------------------------------------------
Fund Fee rate
- --------------------------------------------------------------------------------
Money Market Fund 0.30%
- --------------------------------------------------------------------------------
Short-Intermediate Term U.S. Government Securities Fund 0.50%
- --------------------------------------------------------------------------------
U.S. Government Securities Fund 0.50%
- --------------------------------------------------------------------------------
Intermediate Term Bond Fund 0.50%
- --------------------------------------------------------------------------------
Income Fund 0.50%
- --------------------------------------------------------------------------------
Balanced Fund 0.75%
- --------------------------------------------------------------------------------
Equity Income Fund 0.75%
- --------------------------------------------------------------------------------
Core Equity Fund 0.75%
- --------------------------------------------------------------------------------
Equity Growth Fund 0.75%
- --------------------------------------------------------------------------------
Small Cap Fund 0.75%
- --------------------------------------------------------------------------------

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

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

The portfolio managers

Chase Money Market Fund

Page 62 of 72
<PAGE>

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

Chase Short-Intermediate Term U.S. Government Securities Fund
Mr. Barba has managed the portfolio since its inception on April 1, 1993.

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

Chase Intermediate Term Bond Fund
The portfolio manager is H. Mitchell Harper, a Senior Investment Officer at
Chase Texas. He has managed the portfolio since its inception on April 1, 1993.
Mr. Harper has worked for Chase Texas since 1987.

Chase Income Fund
Mr. Miller has managed the portfolio since July of 1994.

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

Chase Equity Income Fund
The portfolio manager is Robert Heintz, a Senior Investment Officer at Chase
Texas. He has managed the portfolio since its inception on March 29, 1988. Mr.
Heintz has worked for Chase Texas since 1983.

Chase Core Equity Fund
Mr. Lartigue has managed the portfolio since January of 1996.

Chase Equity Growth Fund
Mr. Lartigue has managed the portfolio since July of 1994. Mr. Lartigue has
worked for Chase Texas since 1994.

Chase Small Capitalization Fund

Page 63 of 72
<PAGE>

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

Buying Fund shares

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

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

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

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

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

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

Page 64 of 72
<PAGE>

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

Selling Fund shares

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

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

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

Exchanging Fund shares

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

Other information concerning the Funds

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

Page 65 of 72
<PAGE>

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

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

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

Page 66 of 72
<PAGE>

Distributions and taxes

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

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

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

You have three options for your distributions if your financial services firm
offers them. You may:
o reinvest all of them in additional Fund shares;
o take distributions of net investment income in cash or as a deposit in a
pre-assigned bank account and reinvest distributions of net capital gain
in additional shares; or
o take all distributions in cash or as a deposit in a pre-assigned bank
account.

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

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

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

Page 67 of 72
<PAGE>

distribution you receive, even though the NAV will be higher on that date
because it includes the distribution amount.

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

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

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

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

Page 68 of 72
<PAGE>

Financial highlights of the Funds

[To be supplied by Chase]

Page 69 of 72
<PAGE>

What the terms mean

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

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

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

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

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

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

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

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

Page 70 of 72
<PAGE>

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

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

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

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

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

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

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

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

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

Page 71 of 72
<PAGE>

More information

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

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

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

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

Chase Funds Service Center
P.O. Box 419392
Kansas City, MO 64141-6392

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

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

Public Reference Section of the SEC Washington, DC 20549-6009.
1-800-SEC-0330

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

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

Page 72 of 72
<PAGE>

The Chase Manhattan Bank

Chase Funds, Investor Shares
Draft 2

February, 1999

[Front cover page]

Chase Funds

Prospectus
April, 1999

Investor Class Shares

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

Page 1 of 81
<PAGE>

Contents

How your account works x
Buying Fund shares x
Selling Fund shares x
Exchanging Fund shares x
Other information concerning the Funds x

Distributions and taxes x

Shareholder services x

Financial highlights x

Page 2 of 81
<PAGE>

Information about the Funds

Chase Money Market Fund

The Fund's objective

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

The Fund's main investment strategy

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

The Fund principally invests in:

o high quality commercial paper and other short-term debt securities,
including floating and variable rate demand notes of U.S. and foreign
corporations
o debt securities issued or guaranteed by qualified banks. These are:
o U.S. banks with more than $1 billion in total assets and foreign
branches of these banks
o foreign banks with the equivalent of more than $10 billion in total
assets and which have branches or agencies in the U.S.
o other U.S. or foreign commercial banks which the Fund's advisers judge
to have comparable credit standing
o securities issued or guaranteed by the U.S. Government, its agencies or
authorities
o asset-backed securities
o repurchase agreements.

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

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

Page 3 of 81
<PAGE>

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

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

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

The main investment risks

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

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

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

Page 4 of 81
<PAGE>

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

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

The Fund's past performance

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

Year-by-year returns

[bar chart goes here]
<TABLE>
<CAPTION>
Horizontal axis: Year

<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

<CAPTION>
Vertical axis: Return (%)

Page 5 of 81
<PAGE>

Footnote: The Fund began offering Investor Class shares on July 31, 1998.
Performance figures for Investor Class shares before that date are based on
Premier Class shares of the Fund. Since Investor Class shares have higher
expenses, their performance figures would have been lower.

Best quarter: 2.28%, 2nd quarter, 1989
Worst quarter: 0.44%, 1st quarter, 1998

Average annual total returns
For the periods ending December 31, 1998:

<TABLE>
<CAPTION>
Past 1 year Past 5 years Past 10 years
<S> <C> <C> <C>
Investor Class shares --% --% --%
</TABLE>

Page 6 of 81
<PAGE>

Fees and expenses

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

Shareholder fees (fees paid directly from your investment):
None

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

Total
Fund
Management Distribution Other fees and
fee (12b-1) fees expenses expenses
Investor Class shares 0.30% 0.10% 0.40% 0.80%

Number of years: 1 3 5 10
Costs: $82 $255 $444 $990

Page 7 of 81
<PAGE>

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 8 of 81
<PAGE>

Chase Short-Intermediate Term U.S. Government Securities Fund

The Fund's objective

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

The Fund's main investment strategy

Page 9 of 81
<PAGE>

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

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

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

The main investment risks

Page 10 of 81
<PAGE>

more sensitive to interest rate changes. Mortgage-related securities are subject
to scheduled and unscheduled principal payments as property owners pay down or
prepay their mortgages. As these payments are received, they must be reinvested
when interest rates may be lower than on the original mortgage security. When
interest rates are rising, the value of fixed-income securities with prepayment
features are likely to decrease as much or more than securities without
prepayment features. In addition, the value of mortgage-related securities with
prepayment features may not increase as much as other fixed-income securities
when interest rates fall.

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

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

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

Page 11 of 81
<PAGE>

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

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

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

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

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

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

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

The Fund's past performance

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

The calculations assume that all dividends and distributions are reinvested in
the Fund. Some of the companies that provide services to the Fund have agreed
not to collect some

Page 12 of 81
<PAGE>

expenses and to reimburse others. Without these agreements, the performance
figures would be lower than shown.

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

Year-by-year returns

[bar chart goes here]

Horizontal axis: Year

1993 1994 1995 1996 1997 1998

Vertical axis: Return (%)

2.43 -1.05 12.01 2.68 6.30 --

Best quarter: 4.07, 2nd quarter, 1995
Worst quarter: -1.35%, 1st quarter, 1994

Average annual total returns
For the periods ending December 31, 1998:

<TABLE>
<CAPTION>
Past 1 year Past 5 years Past 10 years
<S> <C> <C> <C>
Investor Class shares --% --% --%
Lehman 1-3 Year Government --% --% --%
Index
Lehman Intermediate --% --% --%
Government Index
</TABLE>

Page 13 of 81
<PAGE>

Fees and expenses

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

Shareholder fees (fees paid directly from your investment):
None

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

Total
Fund
Management Distribution Other fees and
fee (12b-1) fees expenses expenses
Investor Class shares 0.50% 0.25% 1.03% 1.78%

Number of years: 1 3 5 10
Costs: $181 $560 $964 $2,095

Page 14 of 81
<PAGE>

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 15 of 81
<PAGE>

Chase U.S. Government Securities Fund

The Fund's objective

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

The Fund's main investment strategy

Page 16 of 81
<PAGE>

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

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

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

The main investment risks

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

Page 17 of 81
<PAGE>

the value of fixed-income securities with prepayment features are likely to
decrease as much or more than securities without prepayment features. In
addition, the value of mortgage-related securities with prepayment features may
not increase as much as other fixed-income securities when interest rates fall.

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

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

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

Page 18 of 81
<PAGE>

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

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

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

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

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

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

The Fund's past performance

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

Page 19 of 81
<PAGE>

Year-by-year returns

[bar chart goes here]

Horizontal axis: Year

1993 1994 1995 1996 1997 1998

Vertical axis: Return (%)

9.12 -8.39 30.11 -1.89 9.55 --

Best quarter: 10.36%, 2nd quarter, 1995
Worst quarter: -6.79%, 1st quarter, 1996

Average annual total returns
For the periods ending December 31, 1998:

Past 1 year Past 5 years Since inception (4/1/93)
Investor Class shares --% --% --%
Lehman Brothers --% --% --%
Government Index

Fees and expenses

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

Shareholder fees (fees paid directly from your investment):
None

Page 20 of 81
<PAGE>

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

Total
Fund
Investment Distribution Other fees and
advisory fee (12b-1) fees expenses expenses
Investor Class shares 0.50% 0.25% 2.81% 3.56%

Number of years: 1 3 5 10
Costs: $359 $1,091 $1,845 $3,827

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 21 of 81
<PAGE>

Chase Intermediate Term Bond Fund

The Fund's objective

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

The Fund's main investment strategy

Page 22 of 81
<PAGE>

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

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

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

The main investment risks

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

Page 23 of 81
<PAGE>

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

The Fund's performance will depend on the credit quality of its investments.
Securities which are rated Baa by Moody's or BBB by S&P may have fewer
protective provisions

Page 24 of 81
<PAGE>

and are generally more risky than higher rated securities. The issuer may have
trouble making principal and interest payments when difficult economic
conditions exist.

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

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

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

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

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

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

The Fund's past performance

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

Page 25 of 81
<PAGE>

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

Year-by-year returns

[bar chart goes here]

Horizontal axis: Year

1994 1995 1996 1997 1998

Vertical axis: Return (%)

0.08 16.79 1.86 7.26 --

Best quarter: 5.99%, 2nd quarter, 1995
Worst quarter: -2.15%, 1st quarter, 1996

Average annual total returns
For the periods ending December 31, 1998:

Past 1 year Past 5 years Since inception
(10/3/94)
Investor Class --% --% --%
shares
Lehman Brothers --% --% --%
Government/Corporate
Index
Lehman Aggregate --% --% --%
Index

Page 26 of 81
<PAGE>

Fees and expenses

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

Shareholder fees (fees paid directly from your investment):
None

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

Total
Fund
Investment Distribution Other fees and
advisory fee (12b-1) fees expenses expenses
Investor Class shares 0.50% 0.25% 1.14% 1.89%

Number of years: 1 3 5 10
Costs: $192 $594 $1,021 $2,212

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 28 of 81
<PAGE>

Chase Income Fund

The Fund's objective

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

The Fund's main investment strategy

Page 29 of 81
<PAGE>

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

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

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

The main investment risks

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

Page 30 of 81
<PAGE>

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

The Fund's performance will depend on the credit quality of its investments.
Securities which are rated Baa by Moody's or BBB by S&P may have fewer
protective provisions

Page 31 of 81
<PAGE>

and are generally more risky than higher rated securities. The issuer may have
trouble making principal and interest payments when difficult economic
conditions exist.

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

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

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

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

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

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

The Fund's past performance

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

Page 32 of 81
<PAGE>

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

Year-by-year returns

[bar chart goes here]

Horizontal axis: Year

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Vertical axis: Return (%)

10.37 6.60 13.73 5.13 10.18 -4.47 18.38 1.53 8.73 --

Best quarter: 6.34%, 2nd quarter, 1989
Worst quarter: -3.38%, 1st quarter, 1994

Average annual total returns
For the periods ending December 31, 1998:

Past 1 year Past 5 years Past 10 years
Investor Class --% --% --%
shares
Lehman Brothers --% --% --%
Government/Corporate
Index
Fees and expenses

Page 33 of 81
<PAGE>

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

Shareholder fees (fees paid directly from your investment):
None

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

Total
Fund
Investment Distribution Other fees and
advisory fee (12b-1) fees expenses expenses
Investor Class shares 0.50% 0.25% 0.88% 1.63%

Number of years: 1 3 5 10
Costs: $166 $514 $887 $1,933

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 34 of 81
<PAGE>

Chase Balanced Fund

The Fund's objective

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

The Fund's main investment strategy

The Fund seeks a balance of current income and growth by using the following
strategies:
o an active equity management style that focuses on strong earnings momentum
and profitability within the universe of growth-oriented stocks, and
o an active fixed income management style that focuses primarily on domestic
fixed income securities.

Market capitalization is the total market value of a company's shares. Equity
securities include common stocks and preferred stocks and securities that are
convertible into common stocks.

The Fund seeks current income by normally investing at least 25% of its total
assets in U.S. government securities and other fixed income securities,
including mortgage-backed

Page 35 of 81
<PAGE>

securities. The Fund invests in fixed income securities only if they are rated
as investment grade or the adviser considers them to be comparable to investment
grade.

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

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

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

Page 36 of 81
<PAGE>

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

The main investment risks

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

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

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

Page 37 of 81
<PAGE>

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

Page 38 of 81
<PAGE>

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

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

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

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

If the Fund invests a substantial portion of its assets in money market
instruments, repurchase agreements and U.S. Government obligations, it could
reduce the Fund's potential return.

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

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

The Fund's past performance

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

The S&P 500 Index is an unmanaged, broad-based index of 500 companies and is
generally considered to represent the U.S. market. The Lehman Brothers

Page 39 of 81
<PAGE>

Government/Corporate Index is an unmanaged index that consists of the Lehman
government and corporate bond indices, including U.S. Treasury and agency
securities, and corporate and Yankee bonds.

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

Year-by-year returns

[bar chart goes here]

Horizontal axis: Year

Vertical axis: Return (%)

Best quarter: 12.12%, 2nd quarter, 1997
Worst quarter: -5.37%, 3rd quarter, 1990

Average annual total returns
For the periods ending December 31, 1998:

<TABLE>
<CAPTION>
Past 1 year Past 5 years Past 10 years
<S> <C> <C> <C>
Investor Class shares --% --% --%
S&P 500 Index --% --% --%
</TABLE>

Page 40 of 81
<PAGE>

<TABLE>

<S> <C> <C> <C>
Lehman Brothers --% --% --%
Government/Corporate
Index
</TABLE>

Fees and expenses

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

Shareholder fees (fees paid directly from your investment):
None

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

<TABLE>
<CAPTION>
Total Fund
fees and
Investment Distribution Other expenses
advisory fee (12b-1) fees expenses
<S> <C> <C> <C> <C>
Investor Class shares 0.75% 0.25% 0.47% 1.47%
</TABLE>

Page 41 of 81
<PAGE>

Number of years: 1 3 5 10
Costs: $150 $465 $803 $1,757

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 42 of 81
<PAGE>

Chase Equity Income Fund

The Fund's objective

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

The Fund's main investment strategy

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

Page 43 of 81
<PAGE>

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

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

The main investment risks

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

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

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

Page 44 of 81
<PAGE>

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

If the Fund invests a substantial portion of its assets in money market
instruments, repurchase agreements and U.S. Government obligations, it could
reduce the Fund's potential return.

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

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

The Fund's past performance

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

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

Page 45 of 81
<PAGE>

Year-by-year returns

[bar chart goes here]

Horizontal axis: Year

Vertical axis: Return (%)

Best quarter: 17.04%, 2nd quarter, 1997
Worst quarter: -9.88%, 3rd quarter, 1990

Average annual total returns
For the periods ending December 31, 1998:

<TABLE>
<CAPTION>
Past 1 year Past 5 years Past 10 years
<S> <C> <C> <C>
Investor Class shares --% --% --%
S&P 500 Index --% --% --%
</TABLE>

Fees and expenses

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

Shareholder fees (fees paid directly from your investment):
None

Page 46 of 81
<PAGE>

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

<TABLE>
<CAPTION>
Total Fund
fees and
Investment Distribution Other expenses
advisory fee (12b-1) fees expenses
<S> <C> <C> <C> <C>
Investor Class shares 0.75% 0.25% 0.36% 1.36%
</TABLE>

Number of years: 1 3 5 10
Costs: $138 $431 $745 $1,635

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 47 of 81
<PAGE>

Chase Core Equity Fund

The Fund's objective

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

The Fund's main investment strategy

Page 48 of 81
<PAGE>

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

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

The main investment risks

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

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

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

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

Page 49 of 81
<PAGE>

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

If the Fund invests a substantial portion of its assets in money market
instruments, repurchase agreements and U.S. Government obligations, it could
reduce the Fund's potential return.

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

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

The Fund's past performance

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

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

Year-by-year returns

[bar chart goes here]

Page 50 of 81
<PAGE>

Horizontal axis: Year

1993 1994 1995 1996 1997 1998

Vertical axis: Return (%)

7.95 -4.03 25.53 22.54 33.33 --

Best quarter: 17.17%, 2nd quarter, 1997
Worst quarter: -5.54%, 1st quarter, 1994

Page 51 of 81
<PAGE>

Average annual total returns
For the periods ending December 31, 1998:

<TABLE>
<CAPTION>
Past 1 year Past 5 years Since inception (4/1/93)
<S> <C> <C> <C>
Investor Class shares --% --% --%
S&P 500 Index --% --% --%
</TABLE>

Fees and expenses

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

Shareholder fees (fees paid directly from your investment):
None

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

<TABLE>
<CAPTION>
Total Fund
fees and
Investment Distribution Other expenses
advisory fee (12b-1) fees expenses
<S> <C> <C> <C> <C>
Investor Class shares 0.75% 0.25% 0.42% 1.42%
</TABLE>

Example
This example helps you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. As with all other prospectuses, the example
assumes:

Page 52 of 81
<PAGE>

o you invest $10,000
o you sell all your shares at the end of the period
o your investment has a 5% return each year, and
o the Fund's operating expenses remain the same as shown above.

Number of years: 1 3 5 10
Costs: $145 $449 $776 $1,702

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 53 of 81
<PAGE>

Chase Equity Growth Fund

The Fund's objective

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

The Fund's main investment strategy

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

Page 54 of 81
<PAGE>

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

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

The main investment risks

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

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

Page 55 of 81
<PAGE>

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

If the Fund invests a substantial portion of its assets in money market
instruments, repurchase agreements and U.S. Government obligations, it could
reduce the Fund's potential return.

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

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

The Fund's past performance

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

Page 56 of 81
<PAGE>

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

Year-by-year returns

[bar chart goes here]

<TABLE>
<CAPTION>
Horizontal axis: Year

<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

<CAPTION>
Vertical axis: Return (%)

Best quarter: 20.13%, 2nd quarter, 1997
Worst quarter: -15.53%, 3rd quarter, 1990

Average annual total returns
For the periods ending December 31, 1998:

<TABLE>
<CAPTION>
Past 1 year Past 5 years Past 10 years
<S> <C> <C> <C>
Investor Class shares --% --% --%
S&P 500 Index --% --% --%
S&P Barra Growth Index --% --% --%
</TABLE>

Page 57 of 81
<PAGE>

Fees and expenses

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

Shareholder fees (fees paid directly from your investment):
None

Annual Fund operating expenses (expenses that are deducted from Fund assets)*

Total
Fund
Management Distribution Other fees and
fee (12b-1) fees expenses expenses
Investor Class shares 0.75% 0.25% 0.36% 1.36%

Example
This example helps you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. As with all other prospectuses, the example
assumes:

o you invest $10,000
o you sell all your shares at the end of the period
o your investment has a 5% return each year, and
o the Fund's operating expenses remain the same as shown above.

Number of years: 1 3 5 10
Costs: $138 $431 $745 $1,635

Page 58 of 81
<PAGE>

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

Page 59 of 81
<PAGE>

Chase Small Capitalization Fund

The Fund's objective

The Fund aims to provide capital appreciation.

The Fund's main investment strategy

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<PAGE>

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

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

The main investment risks

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

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

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

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<PAGE>

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

If the Fund invests a substantial portion of its assets in money market
instruments, repurchase agreements and U.S. Government obligations, it could
reduce the Fund's potential return.

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

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

The Fund's past performance

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

The calculations assume that all dividends and distributions are reinvested in
the Fund. Some of the companies that provide services to the Fund have agreed
not to collect some

Page 62 of 81
<PAGE>

expenses and to reimburse others. Without these agreements, the performance
figures would be lower than shown.

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

Year-by-year returns

[bar chart goes here]

Horizontal axis: Year

1993 1994 1995 1996 1997 1998

Vertical axis: Return (%)

8.94 -6.12 31.14 30.88 24.08 --

Best quarter: 17.04%, 2nd quarter, 1997
Worst quarter: -6.57%, 1st quarter, 1994

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<PAGE>

Average annual total returns
For the periods ending December 31, 1998:

<TABLE>
<CAPTION>
Past 1 year Past 5 years Since inception (4/1/93)
<S> <C> <C> <C>
Investor Class shares --% --% --%
S&P 500 Index --% --% --%
S&P 600 Index --% --% --%
</TABLE>

Fees and expenses

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

Shareholder fees (fees paid directly from your investment):
None

Fund operating expenses (expenses that are deducted from Fund assets)*

Total
Fund
Management Distribution Other fees and
fee (12b-1) fees expenses expenses
Investor Class shares 0.75% 0.25% 0.47% 1.47%

Example

Page 64 of 81
<PAGE>

This example helps you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. As with all other prospectuses, the example
assumes:
o you invest $10,000
o you sell all your shares at the end of the period
o your investment has a 5% return each year, and
o the Fund's operating expenses remain the same as shown above.

Number of years: 1 3 5 10
Costs: $150 $465 $803 $1,757

This example is for comparison only. Your actual costs may be higher or lower,
depending on the amount you invest and the Fund's actual rate of return.

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<PAGE>

Fund management

The investment adviser

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

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

The portfolio managers

Chase Money Market Fund
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<PAGE>

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

Chase Short-Intermediate Term U.S. Government Securities Fund
Mr. Barba has managed the portfolio since its inception on April 1, 1993.

Chase Income Fund
Mr. Miller has managed the portfolio since July of 1994.

Chase Core Equity Fund
Mr. Lartigue has managed the portfolio since January of 1996.

Chase Equity Growth Fund
Mr. Lartigue has managed the portfolio since July of 1994. Mr. Lartigue has
worked for Chase Texas since 1994.

Chase Small Capitalization Fund
Page 67 of 81
<PAGE>

Buying Fund shares

There is no commission or sales charge to buy Investor Class shares.

Minimum investments
- --------------------------------------------------------------------------------
Type of account Initial investment Additional investments
- --------------------------------------------------------------------------------
Regular account $2,500 $100
- --------------------------------------------------------------------------------
Systematic Investment Plan $1,000 $100
- --------------------------------------------------------------------------------
Individual Retirement Accounts
(IRAs) and Roth IRAs $1,000 $100
- --------------------------------------------------------------------------------
SEP-IRAs $1,000 $100
- --------------------------------------------------------------------------------
Education IRAs $500 $100
- --------------------------------------------------------------------------------
SIMPLE IRAs $25 $25
- --------------------------------------------------------------------------------

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<PAGE>

You can buy shares three ways:
- --------------------------------------------------------------------------------
Through your investment representative Tell your representative which Funds
you want to buy and he or she will
contact us. Your representative may
charge you a fee and may offer
additional services, such as special
purchase and redemption programs. Some
representatives charge a single fee
that covers all services. Your adviser
may impose different minimum
investments and earlier deadlines to
buy and sell shares.

- --------------------------------------------------------------------------------
Through the Chase Funds Service Center Call 1-888-524-2730

Complete the enclosed application form
and mail it along with a check for the
amount you want to invest to:
Chase Funds Service Center,
P.O. Box 419392
Kansas City, MO 64141-6392
- --------------------------------------------------------------------------------
Through a Systematic Investment Plan You can make regular automatic
purchases of at least $100. For
information about the Systematic
Investment Plan, see the Shareholder
services section of this prospectus.
- --------------------------------------------------------------------------------

The price of the shares is the net asset value per share (NAV). NAV is the value
of everything a Fund owns, minus everything it owes, divided by the number of
shares held by investors. You'll pay the public offering price, which is based
on the next NAV calculated after the Chase Funds Service Center accepts your
instructions. Each Fund calculates its NAV once each day at the close of regular
trading on the New York Stock Exchange.

The center accepts purchase orders on any business day that the New York Stock
Exchange is open. Normally, if the Chase Funds Service Center receives your
order in

Page 69 of 81
<PAGE>

proper form by the close of regular trading on the New York Stock Exchange,
we'll process your order at that day's price. An order is in proper form only
after payment is converted into federal funds.

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

Make your check out to Chase Funds in U.S. dollars. We won't accept credit
cards, cash, or checks from a third party. You cannot sell your shares until
your check has cleared, which could take more than 15 calendar days. If you buy
through an Automated Clearing House, you can't sell your shares until the
payment clears. That could take more than seven business days.

Your purchase will be cancelled if your check doesn't clear and you'll be
responsible for any expenses and losses to the Funds. Orders by wire will be
cancelled if the Chase Funds Service Center doesn't receive payment by 4:00 p.m.
Eastern time on the day you buy.

If you're planning to exchange, sell or transfer shares to another person
shortly after buying the shares, you should pay by certified check to avoid
delays. The Fund will not issue certificates for Fund shares.

Page 70 of 81
<PAGE>

Selling Fund shares

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

You can sell your shares three ways:
- --------------------------------------------------------------------------------
Through your investment representative Tell your representative which Funds
you want to sell. He or she will send
the necessary documents to the Chase
Funds Service Center. Your
representative might charge you for
this service.
- --------------------------------------------------------------------------------

Through the Chase Funds Service Center Call 1-888-524-2730. We will mail you a
check or send the proceeds via
electronic transfer or wire. You cannot
sell by phone if you have changed your
address of record within the previous
30 days. If you sell $25,000 or more
worth of Funds by phone, we'll send the
money by wire only to a bank account on
our records. We charge $10 for each
transaction by wire.

Send a signed letter with your
instructions to:
Chase Funds Service Center,
P.O. Box 419392
Kansas City, MO 64141-6392
- --------------------------------------------------------------------------------

Through a Systematic Withdrawal Plan You can automatically sell as little as
$50 worth of shares. For information
about the Systematic Withdrawal Plan,
see the Shareholder services section of
this prospectus.
- --------------------------------------------------------------------------------

You can sell your Investor Class shares on any day the Funds are accepting
purchase orders. You'll receive the next NAV calculated after the Chase Funds
Service Center accepts your order.

Under normal circumstances, if the Chase Funds Service Center receives your
order before the close of regular trading on the New York Stock Exchange, each
Fund will send you the proceeds the next business day. We won't accept an order
to sell shares if the Fund hasn't collected your payment for the shares. Each
Fund may stop accepting orders to sell and may postpone payments for more than
seven days, as federal securities laws permit.

Page 71 of 81
<PAGE>

Signature guarantees
Before you sell, you'll need signatures guaranteed for all registered owners or
their legal representative if:
o you want to sell shares with a net asset value of $100,000 or more
o you want your payment sent to an address other than the one we have in our
records.

We may also need additional documents or a letter from a surviving joint owner
before selling the shares. Contact the Chase Funds Service Center for more
details.

Exchanging Fund shares

You can exchange your shares for shares of certain other Chase Funds at net
asset value, beginning 15 days after you buy your shares.

You can exchange your shares three ways:
- --------------------------------------------------------------------------------
Through your investment representative Tell your representative which Funds
you want to exchange from and to. He or
she will send the necessary documents
to the Chase Funds Service Center. Your
representative might charge you for
this service.
- --------------------------------------------------------------------------------
Through the Chase Funds Service Center Call 1-888-524-2730 to ask for details.
- --------------------------------------------------------------------------------
Through a Systematic Exchange Plan You can automatically exchange money
from one Chase account to another of
the same class. Call the Chase Funds
Service Center for details.
- --------------------------------------------------------------------------------

You should not exchange shares as means of short-term trading as this could
increase management cost and affect all shareholders. We reserve the right to
limit the number of exchanges or to refuse an exchange. We may also terminate
this privilege. We charge an administration fee of $5 for each exchange if you
make more than 10 exchanges in a year or three exchanges in a quarter. See the
Statement of Additional Information to find out more about the exchange
privilege.

Other information concerning the Funds

We may close your account if the balance falls below $500 because you've sold
shares. We may also close the account if you are in the Systematic Investment
Plan and fail to

Page 72 of 81
<PAGE>

meet investment minimums over a 12-month period. We'll give you 60 days notice
before closing your account.

Unless you indicate otherwise on your account application, we may act on
redemption and transfer instructions we receive by phone. If someone trades on
your account by phone, we'll ask that person to confirm your account
registration and address to make sure they match those you gave us. If they
supply the correct information, we are generally authorized to follow that
person's instructions. We'll take all reasonable precautions to confirm that the
instructions are genuine. You agree that you will not hold a Fund liable for any
loss or expenses from any sales request, if the Fund has taken reasonable
precautions. The Fund will be liable for any losses to you from an unauthorized
sale or fraud against you only if it does not follow reasonable procedures.

You may not always reach the Chase Funds Service Center by telephone. This may
be true at times of unusual market changes and shareholder activity. You can
mail us your instructions or contact your investment representative or agent. We
may modify or cancel the sale of shares by phone without notice.

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

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

Each Fund has adopted a Rule 12b-1distribution plan for Investor Class shares.
It provides for payment of distribution fees at an annual rate of up to:
o 0.10% of the average daily net assets attributed to Investor Class shares
of the Money Market Fund
o 0.25% of the average daily net assets attributed to Investor Class shares
of each other Fund described in this prospectus.

The money from these payments is used to compensate the Funds' distributor and
broker-dealers for the services they provide and the expenses they incur selling
Investor Class shares. Payments are not tied to the actual expenses incurred.

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<PAGE>

Because 12b-1 expenses are paid out of a Fund's assets on an ongoing basis, over
time these fees will increase the cost of your investment and may cost you more
than other types of sales charges.

Page 74 of 81
<PAGE>

Distributions and taxes

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

You have three options for your distributions if your financial services firm
offers them. You may:
o reinvest all of them in additional Fund shares;
o take distributions of net investment income in cash or as a deposit in a
pre-assigned bank account and reinvest distributions of net capital gain in
additional shares; or
o take all distributions in cash or as a deposit in a pre-assigned bank
account.

Page 75 of 81
<PAGE>

distribution you receive, even though the NAV will be higher on that date
because it includes the distribution amount.

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

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

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

Page 76 of 81
<PAGE>

Shareholder services

Systematic Investment Plan
You can regularly invest $100 or more in the first or third week of any month.
The money is automatically debited from your checking or savings account. You
must make an initial deposit of at least $1,000 to start the plan.

You can set up a plan when you open an account by completing the appropriate
section of the application. Current shareholders can join by sending a signed
letter and a deposit slip or void check to the Chase Funds Service Center. Call
1-888-524-2730 for complete instructions.

Systematic Withdrawal Plan
You can make regular withdrawals of $50 or more. You can have automatic
withdrawals made monthly, quarterly or semiannually. Your account must contain
at least $5,000 to start the plan. Call 1-888-524-2730 for complete
instructions.

Systematic exchange
You can transfer assets automatically from one Chase account to another on a
regular basis. It's a free service.

Telephone privileges
You can buy, sell and exchange your shares by calling the Chase Funds Service
Center. Telephone privileges are provided automatically, unless you tell us
otherwise on your account application.

Page 77 of 81
<PAGE>

Financial highlights of the Funds

[To be supplied by Chase]

Page 78 of 81
<PAGE>

What the terms mean

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

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

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

Page 79 of 81
<PAGE>