--------------------------------------------------------------------------------
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
Chase Funds
SEMI-ANNUAL REPORT
MONEY MARKET FUND
SHORT-INTERMEDIATE TERM U.S.
GOVERNMENT SECURITIES FUND
INTERMEDIATE TERM
BOND FUND
U.S. GOVERNMENT
SECURITIES FUND
INCOME FUND
BALANCED FUND
EQUITY INCOME FUND
SMALL CAPITALIZATION
CORE EQUITY FUND
EQUITY GROWTH FUND
[CHASE Logo]
ANCF-3-600
<PAGE>
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Contents
-----------------------------------------------------------------------------
Chairman's Letter 1
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Chase Money Market Fund 2
Fund Commentary
-----------------------------------------------------------------------------
Chase Short-Intermediate Term
U.S. Government Securities Fund 4
Fund Commentary
-----------------------------------------------------------------------------
Chase Intermediate Term Bond Fund 6
Fund Commentary
-----------------------------------------------------------------------------
Chase U.S. Government Securities Fund 8
Fund Commentary
-----------------------------------------------------------------------------
Chase Income Fund 10
Fund Commentary
-----------------------------------------------------------------------------
Chase Balanced Fund 12
Fund Commentary
-----------------------------------------------------------------------------
Chase Equity Income Fund 15
Fund Commentary
-----------------------------------------------------------------------------
Chase Small Capitalization Fund 18
Fund Commentary
-----------------------------------------------------------------------------
Chase Core Equity Fund 21
Fund Commentary
-----------------------------------------------------------------------------
Chase Equity Growth Fund 24
Fund Commentary
-----------------------------------------------------------------------------
Portfolios of Investments 27
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Fund Financial Statements 49
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Portfolio Financial Statements 79
Highlights
o Domestic equity and fixed-income markets endured a rocky period during the
first half of the year.
o The streak of new economy stock outperformance came to a halt, and the
divergence between those stocks and old economy stocks began to diminish.
o Amid a growing federal budget surplus backdrop, the U.S. Treasury's buyback
program prompted higher long-term Treasury prices, leading to an inverted
yield curve.
---------------------------------------------------
NOT FDIC INSURED May lose value / No bank guarantee
---------------------------------------------------
<PAGE>
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CHASE FUNDS
--------------------------------------------------------------------------------
Chairman's Letter
August 1, 2000
Dear Shareholder:
We are pleased to present this semi-annual report for the Chase Funds for the
six months ended June 30, 2000. To help you analyze your investment, this
report gives you specific information on your Fund's holdings, performance,
management strategies and outlook.
Old Economy/New Economy: An End of the Extremes
The first half of 2000 was rocky for domestic equity and fixed-income markets.
At first, new economy outperformance continued, whereby technology-related
stocks appreciated at the expense of all others. This was evident in the
Nasdaq, which was up 15.42% in the first two months of the year, compared with
a loss of 7% for the S&P 500. This trend carried into March, with the Nasdaq
cresting to its 2000 high of 5,048 on March 10.
Although there was no single catalyst that caused the new economy's stumble,
Nasdaq investors were on a bumpy ride for the remainder of the period as the
index fell to a low of 3,164 on May 23, before rising to 4,064 on June 21, and
ending at 3,966. The S&P 500 was flat (-0.4%), proving less volatile than the
Nasdaq.
It became clear that the Federal Reserve Board's tight money policies were
taking effect. When the Fed raised rates in May, the market was in the
doldrums. Economic reports suggested, however, that rates were impacting the
economy, and the potential for slower growth and an end to tightenings allowed
for a June rally. The best performing S&P 500 sectors were healthcare, energy,
technology and utilities. By capitalization, mid-caps outperformed.
Treasury Buyback Program Has Big Impact on Bonds
While the economic state is a driver among bonds, one cannot overlook the
factor of the Treasury's buyback program for longer-dated Treasuries given the
growing federal budget surplus. With normal supply-and-demand considerations
taking hold, investors bid up the prices of long-term Treasuries, resulting in
an inverted yield curve, with higher yields for shorter-term issues. The
program caused "spread" sectors to underperform, which is unusual when the Fed
is in a tightening cycle.
Undoubtedly, the big issue is whether the economy can achieve a soft landing,
allowing the Fed to take its foot off the brakes. Regardless, our equity fund
managers continue to pick what they believe are the best stocks across sectors,
those with potential to increase earnings in a variety of economic scenarios.
Our bond fund managers are focused on adding value through individual security
selection as well as sector allocations. On behalf of the management team, and
everyone at Chase Funds, we thank you for your business.
Sincerely yours,
[Graphic; Signature of Sarah E. Jones]
Sarah E. Jones
Chairman
1
<PAGE>
--------------------------------------------------------------------------------
CHASE MONEY MARKET FUND
As of June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
How the Fund Performed
Chase Money Market Fund had a total return of 2.89% (Premier Shares), for the
six months ended June 30, 2000. As of the last day of the period, the Fund had
an annualized dividend yield of 6.15% (Premier Shares).
How the Fund Was Managed
The management team's decision to extend the Fund's average-weighted duration
during the first quarter, as interest rates rose, contributed positively to
performance in January, February and March. In the second quarter, the
management team continued to use the rising rate environment as an opportunity
to purchase higher-yielding, longer-duration paper that should help shield the
Fund from subsequent drops in rates.
Where the Fund May Be Headed
In the management team's view, there will likely be one more Fed rate hike over
the remainder of this year, most likely at the Federal Open Market Committee's
meeting on August 22. While noting that the US economy has indicated hints of a
slowdown, the team's view is that it may be the third quarter before the pace
of any cooling can be confirmed. In the meantime, the expected strategy is one
of diversification among high quality securities and taking advantage of any
further interest rate hikes by extending duration to capture yield for
shareholders.
2
<PAGE>
CHASE MONEY MARKET FUND
As of June 30, 2000 (Unaudited)
Maturity Schedule
<TABLE>
<S> <C>
1-14 days 64.50%
15-30 days 7.08%
31-60 days 7.02%
61-90 days 7.65%
91-180 days 2.99%
181-270 days 7.69%
270+ days 3.07%
</TABLE>
7-Day Avg. Yield
<TABLE>
<S> <C>
Premier Shares 6.18%
Investor Shares 6.08%
</TABLE>
Performance information represents past performance and is not intended to
indicate or predict future results. Yields will vary and you may experience
gains or losses when you sell your shares.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
Chase Money Market Fund is the successor to the AVESTA Trust Money Market Fund.
Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual
Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part of the
conversion, the Fund transferred all of its assets to Chase Money Market Fund, a
new investment portfolio of MFIT.
The Chase Money Market Fund unlike the AVESTA Money Market Fund, is subject to
certain diversification, distribution and other requirements imposed under the
Internal Revenue Code, which may impact performance.
Premier Shares commenced on 3/29/88, carry a $250,000 minimum initial investment
and carry no sales charge. Investor Shares commenced on 11/10/98 and have a
minimum initial investment of $2,500. Please note internal expenses are greater
for the Investor Shares class. Performance measurements for the Investor Shares
prior to 11/10/98 are based on the predecessor Premier Shares class and do not
include Investor Share class expenses.
Yield information is net of expenses and fees, and reflects reimbursement and
waiver of certain expenses and fees.
An investment in the Fund isn't a bank deposit and it isn't insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although the 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.
3
<PAGE>
--------------------------------------------------------------------------------
CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND
As of June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
How the Fund Performed
Chase Short-Intermediate Term U.S. Government Securities Fund (Premier Shares)
had a total return of 2.78% in the six months ended June 30, 2000, compared to a
total return of 3.00% for the Lehman 1-3 Year Government Index.
How the Fund Was Managed
The Fund began 2000 with a shorter-than-benchmark duration, and this proved
detrimental to performance in the first quarter. While the Fund's exposure to
non-Treasury sectors was also a negative factor, this was offset by the fact
that the Fund was concentrated in the short end of the yield curve. As the first
quarter progressed, the management team took advantage of widening yield spreads
between Treasuries and other sectors to increase the Fund's yield by adding to
government agency securities.
The Fund entered the second quarter with a relatively neutral duration strategy
and this generally helped the Fund maintain its performance in the crosswinds
created by the strong economy's upward pressure on rates and the Treasury's
buyback program's downward pressure. The Fund also benefited from its yield
curve strategy as it had a barbell in place when the yield curve inverted and
began adjusting back to neutral given the expectation that the curve would
correct back to a more normal slope. The management team maintained the Fund's
exposure to mortgage and agency securities due to historically-high yield
spreads, and within mortgages began concentrating on GNMA issues for several
reasons: the explicit government guarantee; higher yields that don't fully
reflect the guarantee; a high degree of convexity, and; a lower likelihood of
being adversely affected by mortgage prepayments.
Where the Fund May Be Headed
Moving forward, the management team intends to continue to focus on GNMA issues
for the reasons cited above and to adjust the portfolio in a prudent manner as
the status of the economy becomes clear.
4
<PAGE>
CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND
As of June 30, 2000 (Unaudited)
Average Annual Total Returns
<TABLE>
<CAPTION>
Since
Inception
1 Year 3 Years 5 Years (4/1/93)
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Premier Shares 3.69% 4.89% 4.76% 4.51%
------------------------------------------------------------------------------
Investor Shares 3.44% 4.76% 4.68% 4.45%
------------------------------------------------------------------------------
</TABLE>
Life of Fund Performance*
[Line chart data]
<TABLE>
<CAPTION>
Chase Lipper Lehman Lehman
Short-Intermediate Short-Intermediate Intermediate 1-3 Year
Term U.S. Government U.S. Government Government Government
Securities Fund Funds Index Index Index
<S> <C> <C> <C> <C>
4/93 10000 10000 10000 10000
6/93 10090 10166 10197 10111
6/94 10080 10135 10177 10265
6/95 10908 10969 11169 11052
6/96 11308 11437 11721 11657
6/97 11928 12179 12535 12423
6/98 12744 13046 13585 13266
6/99 13278 13522 14186 13935
6/00 13769 14057 14823 14612
</TABLE>
[End Line data
*Source: Lipper Analytical Services Past performance is no guarantee of future
results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Short-Intermediate Term U.S. Government Securities Fund,
the Lehman 1-3 Year Government Index, the Lehman Intermediate Government Index
and Lipper Short-Intermediate Term U.S. Government Funds Index from April 1,
1993 to June 30, 2000. The performance of the Fund assumes the reinvestment of
all dividends and capital gains and does not include a sales charge. The
performance of the indices does not include a sales charge and has been adjusted
to reflect the reinvestment of all dividends and capital gains on the securities
included in the benchmark. Premier Shares carry a $250,000 minimum initial
investment and carry no sales charge.
Investor Shares commenced on 11/10/98 and carry a minimum initial investment of
$2,500. Please note internal expenses are greater for the Investor Shares class.
Performance measurements for the Investor Shares prior to 11/10/98 are based on
the predecessor Premier Shares class and do not include Investor Share class
expenses.
Chase Short-Intermediate Term U.S. Government Securities Fund is the successor
to the AVESTA Trust Short-Intermediate Term U.S. Government Securities Fund.
Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual
Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part of the
conversion, the Fund transferred all of its assets to Chase Short-Intermediate
Term U.S. Government Securities Fund, a new investment portfolio of MFIT.
Chase Short-Intermediate Term U.S. Government Securities Fund, unlike the AVESTA
Trust Short-Intermediate Term U.S. Government Securities Fund, is subject to
certain diversification, distribution and other requirements imposed under the
Internal Revenue Code, which may impact performance.
The Lehman 1-3 Year Government Index is composed of bonds covered by the
Government Bond Index with maturities of 1-3 years. The index is unmanaged and
reflect the reinvestment of dividends. An individual cannot invest directly in
an index.
The Lipper Short-Intermediate Term U.S. Government Funds Index represents
performance of the 30 largest short-intermediate term debt funds. Lipper is an
independent mutual fund performance monitor whose results are based on total
return and do not reflect a sales charge. An individual cannot invest directly
in an index.
The Lehman Intermediate Government Index consists of U.S. agency and Treasury
securities with maturities of one to 10 years. An individual cannot invest
directly in an index.
5
<PAGE>
--------------------------------------------------------------------------------
CHASE INTERMEDIATE TERM BOND FUND
As of June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
How the Fund Performed
Chase Intermediate Term Bond Fund (Premier Shares) had a total return of 3.26%
in the six months ended June 30, 2000, compared to a total return of 3.99% for
the Lehman Aggregate Index.
How the Fund Was Managed
The Fund began 2000 positioned for continued strength in the US economy, and as
such was short-to-neutral its benchmark duration. When the US Treasury announced
and began its program of buying back longer-dated Treasuries, causing the yield
curve to invert and longer Treasuries to outperform dramatically, the management
team attempted to extend duration to take advantage of the rally. Of substantial
benefit during the first quarter's rally was the Fund's yield curve strategy as
the portfolio had significant exposure to 20-year securities, the strongest part
of the curve. On a sector level, the Fund benefited in the first quarter from
its exposure to mortgages, and the management team took advantage of widening
yield spreads between Treasuries and other sectors to increase the Fund's yield
substantially, especially by adding to corporate and agency positions.
The Fund's overweight position in "spread" sectors was detrimental to relative
performance in April and May as longer-dated Treasuries continued to outperform
with the support of the Treasury buyback program, but this was somewhat offset
by positions in strong-performing longer paper during the June rally. The Fund's
longer duration had the opposite effect of the "spread" sector overweight,
causing underperformance in May, as rates on securities of ten years and longer
rose, and then helping in the June rally.
Where the Fund May Be Headed
As the reporting period ended, the management team had begun increasing mortgage
exposure given its belief that the market could be in a trading range and,
therefore, it should be advantageous to hold higher-yielding securities without
the extra credit and supply risks of corporate bonds. Additionally, the
management team intends to continue to adjust the portfolio in a prudent manner
as the status of the economy becomes clear.
6
<PAGE>
CHASE INTERMEDIATE TERM BOND FUND
As of June 30, 2000 (Unaudited)
Average Annual Total Returns
<TABLE>
<CAPTION>
Since
Inception
1 Year 3 Years 5 Years (10/3/94)
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Premier Shares 3.69% 4.93% 4.83% 6.05%
----------------------------------------------------------------------------
Investor Shares 3.44% 4.78% 4.74% 5.98%
----------------------------------------------------------------------------
</TABLE>
Life of Fund Performance*
[Line chart data]
<TABLE>
<CAPTION>
Chase Lipper Lehman
Intermediate Intermediate Lehman Intermediate
Term Bond Grade Debt Aggregate Gov't/Credit
Fund Funds Index Index Index
<S> <C> <C> <C> <C>
10/94 10000 10000 10000 10000
6/95 11069 11042 11187 10947
6/96 11439 11565 11747 11494
6/97 12129 12484 12705 12324
6/98 13200 13692 14044 13376
6/99 13513 14032 14483 13935
6/00 14013 14558 15142 14521
</TABLE>
[End Line data]
*Source: Lipper Analytical Services Past performance is no guarantee of future
results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Intermediate Term Bond Fund, the Lehman Intermediate
Gov't/ Credit Index (formerly the Lehman Intermediate Gov't./Corp. Index), the
Lehman Aggregate Index and the Lipper Intermediate Grade Debt Funds Index from
October 31, 1994 to June 30, 2000. The performance of the Fund assumes the
reinvestment of all dividends and capital gains and does not include a sales
charge. The performance of the indices does not include a sales charge and has
been adjusted to reflect the reinvestment of all dividends and capital gains on
the securities included in the benchmark. Premier Shares carry a $250,000
minimum initial investment and carry no sales charge.
Investor Shares commenced on 11/10/98 and have a minimum initial investment of
$2,500. Please note internal expenses are greater for the Investor Shares class.
Performance measurements for the Investor Shares prior to 11/10/98 are based on
the predecessor Premier Shares and do not include Investor Share expenses.
Chase Intermediate Term Bond Fund is the successor to the AVESTA Trust
Intermediate Term Bond Fund. Effective 12/31/97, the AVESTA Trust was converted
from a Texas Trust to Mutual Fund Investment Trust ("MFIT"), a Massachusetts
business trust. As part of the conversion, the Fund transferred all of its
assets to Chase Intermediate Term Bond Fund, a new investment portfolio of MFIT.
Chase Intermediate Term Bond Fund, unlike the AVESTA Trust Intermediate Term
Bond Fund, is subject to certain diversification, distribution and other
requirements imposed under the Internal Revenue Code, which may impact
performance.
The Lipper Intermediate Grade Debt Funds Index represents performance of the
largest 30 intermediate investment grade debt funds. Each of these funds invests
the majority of its assets in investment grade debt issues (rated in top four
grades) with dollar-weighted average maturities of five to 10 years. Lipper is
an independent mutual fund performance monitor whose results are based on total
return and do not reflect a sales charge. An individual cannot invest directly
in an index.
The Lehman Aggregate Index is composed of the Lehman Government/ Corporate Bond
Index and the Mortgage-Backed Securities Index and includes Treasury issues,
agency issues, corporate bond issues and mortgage-backed securities. The index
is unmanaged and reflects the reinvestment of dividends. An individual cannot
invest directly in an index.
The Lehman Intermediate Gov't/Credit Index includes the government and corporate
bond indices, with maturities of one to 10 years, including U.S. governmental
treasury and agency securities, corporate and yankee bonds. An individual cannot
invest directly in an index.
7
<PAGE>
--------------------------------------------------------------------------------
CHASE U.S. GOVERNMENT SECURITIES FUND
As of June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
How the Fund Performed
Chase U.S. Government Securities Fund (Premier Shares) had a total return of
4.37% in the six month period ended June 30, 2000, compared to a total return of
4.97% for the Lehman Government Index.
How the Fund Was Managed
Beginning the year with a longer-than-benchmark duration, the Fund benefited as
yields fell in response to the U.S. Treasury's program to buy back longer-dated
securities. Although the Fund was underexposed to the Treasury sector in general
during the quarter, Treasury (and mortgage) exposure was concentrated in the
long end of the yield curve, which outperformed dramatically. As the first
quarter progressed, the management team took advantage of widening yield spreads
between Treasuries and other sectors to increase the Fund's yield profile by
adding to non-GNMA government agency positions.
The Fund entered the second quarter with a relatively neutral duration and yield
curve strategy, and this generally helped the Fund maintain its performance in
the crosswinds created by the strong economy's upward pressure on rates and the
Treasury's buyback program's downward pressure. The management team maintained
the Fund's exposure to mortgage and agency securities due to historically-high
yield spreads, and within mortgages began concentrating on GNMA issues for
several reasons: the explicit government guarantee; higher yields that don't
fully reflect the guarantee; a high degree of convexity, and; a lower likelihood
of being adversely affected by mortgage prepayments.
Where the Fund May Be Headed Moving forward, the management team intends to
continue its focus on GNMA issues for the reasons cited above and to adjust the
portfolio in a prudent manner as the status of the economy becomes clear.
8
<PAGE>
CHASE U.S. GOVERNMENT SECURITIES FUND
As of June 30, 2000 (Unaudited)
Average Annual Total Returns
<TABLE>
<CAPTION>
Since
Inception
1 Year 3 Years 5 Years (4/1/93)
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Premier Share s 4.26% 6.23% 5.74% 6.27%
----------------------------------------------------------------------------
Investor Shares 4.00% 6.09% 5.66% 6.21%
----------------------------------------------------------------------------
</TABLE>
Life of Fund Performance*
[Line chart data]
<TABLE>
<CAPTION>
Chase Lipper
U.S. Government General Lehman
Securities U.S. Government Government
Fund Funds Index Index
<S> <C> <C> <C>
4/93 10000 10000 10000
6/93 10530 10252 10289
6/94 9999 9937 10151
6/95 11749 10989 11375
6/96 12100 11383 11887
9/97 12960 12227 12766
6/98 14575 13446 14203
6/99 14904 13662 14635
6/00 15535 14180 15364
</TABLE>
[End Line data]
*Source: Lipper Analytical Services Past performance is no guarantee of future
results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
This chart represents the comparative performance for $10,000 invested in the
Premier Shares of Chase U.S. Government Securities Fund, the Lehman Government
Index, and Lipper General U.S. Government Funds Index from April 1, 1993 to June
30, 2000. The performance of the Fund assumes the reinvestment of all dividends
and capital gains and does not include a sales charge. The performance of the
indices does not include a sales charge and has been adjusted to reflect the
reinvestment of all dividends and capital gains on the securities included in
the benchmark. Premier Shares carry a $250,000 minimum initial investment and
carry no sales charge.
Investor Shares commenced on 11/10/98 and have a minimum initial investment of
$2,500. Please note internal expenses are greater for the Investor Shares class.
Performance measurements for the Investor Shares prior to 11/10/98 are based on
the predecessor Premier Shares class and do not include Investor Share class
expenses.
Chase U.S. Government Securities Fund is the successor to the AVESTA Trust U.S.
Government Securities Fund. Effective 12/31/97, the AVESTA Trust was converted
from a Texas Trust to Mutual Fund Investment Trust ("MFIT"), a Massachusetts
business trust. As part of the conversion, the Fund transferred all of its
assets to Chase U.S. Government Securities Fund, a new investment portfolio of
MFIT.
Chase U.S. Government Securities Fund, unlike the AVESTA U.S. Government
Securities Fund, is subject to certain diversification, distribution and other
requirements imposed under the Internal Revenue Code, which may impact
performance.
Lehman Government Index is composed of the Lehman Treasury Bond Index and the
Lehman Agency Bond Index and includes Treasury bonds and debt issued by the U.S.
Government and its agencies. The index is unmanaged and includes the
reinvestment of dividends. An individual cannot invest directly in an index.
The Lipper General U.S. Government Funds Index represents performance of the 30
largest U.S. government securities funds. Lipper is an independent mutual fund
performance monitor whose results do not reflect a sales charge. An individual
cannot invest directly in an index.
9
<PAGE>
--------------------------------------------------------------------------------
CHASE INCOME FUND
As of June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
How the Fund Performed
Chase Income Fund (Premier Shares) had a total return of 2.78% in the six
months ended June 30, 2000, compared to a total return of 4.18% for the Lehman
Government/Credit Index.
How the Fund Was Managed
The Fund began 2000 positioned for continued strength in the US economy, and as
such was short-to-neutral its benchmark duration. When the US Treasury
announced and began its program of buying back longer-dated Treasuries, causing
the yield curve to invert and longer Treasuries to outperform dramatically, the
management team attempted to extend duration to take advantage of the rally. Of
substantial benefit during the first quarter's rally was the Fund's yield curve
strategy, as the portfolio had significant exposure to longer-term issues. As
the quarter progressed, the management team took advantage of widening yield
spreads between Treasuries and other sectors to increase the Fund's yield
substantially, especially by adding to corporate and agency positions.
The Fund entered the second quarter positioned for continued strength in the
economy and an actively-tightening Fed posture. Specifically, the Fund was
overweight in non-Treasury "spread" sectors, which tend to outperform in a
rising-interest rate environment. This proved beneficial in April and early May
but, when economic data softened in late May and early June, the bond market
shifted gears radically and began to rally. While this rally did not support
the Fund's strategy, the management team felt that such a sharp reversal on
limited data was a case of overreaction. Instead of restructuring the entire
portfolio, therefore, the team preferred to make more limited adjustments.
Where the Fund May Be Headed
Moving forward, the management team intends to continue to adjust the portfolio
in a prudent manner as the status of the economy becomes clear. On a sector
level, the team is concerned about excessive corporate supply, particularly
among telecommunications issuers.
10
<PAGE>
CHASE INCOME FUND
As of June 30, 2000 (Unaudited)
Average Annual Total Returns
<TABLE>
<S> <C> <C> <C> <C>
1 Year 3 Years 5 Years 10 Years
----------------------------------------------------------------------------
Premier Share s 2.66% 5.14% 5.42% 6.60%
----------------------------------------------------------------------------
Investor Shares 2.46% 5.04% 5.36% 6.57%
----------------------------------------------------------------------------
</TABLE>
10 Year Performance*
[Line chart data]
<TABLE>
<CAPTION>
Lipper
Chase Corporate Debt Lehman
Income A Rated Funds Government/Credit
Fund Index Index
<S> <C> <C> <C>
6/90 10000 10000 10000
6/91 10713 10977 11022
6/92 12069 12619 12585
6/93 13483 14328 14240
6/94 13097 14000 14032
6/95 14547 15775 15823
6/96 15310 16468 16560
6/97 16297 17821 17843
6/98 18075 19733 19857
6/99 18452 19971 20392
6/00 18947 20614 21264
</TABLE>
[End Line data]
*Source: Lipper Analytical Services Past performance is no guarantee of future
results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Income Fund, the Lehman Gov't/Credit Index (formerly the
Lehman Gov't/Corp. Index) and the Lipper Corporate Debt A Rated Funds Index from
June 30, 1990 to June 30, 2000. The performance of the Fund assumes the
reinvestment of all dividends and capital gains and does not include a sales
charge. The performance of the indices does not include a sales charge and has
been adjusted to reflect the reinvestment of all dividends and capital gains on
the securities included in the benchmark. Premier Shares carry a $250,000
minimum initial investment and carry no sales charge.
Investor Shares commenced on 11/10/98 and have a minimum initial investment of
$2,500. Please note internal expenses are greater for the Investor Shares class.
Performance measurements for the Investor Shares prior to 11/10/98 are based on
the predecessor Premier Shares class and do not include Investor Share class
expenses.
Chase Income Fund is the successor to the AVESTA Trust Income Fund. Effective
12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual Fund
Investment Trust ("MFIT"), a Massachusetts business trust. As part of the
conversion, the Fund transferred all of its assets to Chase Income Fund, a new
investment portfolio of MFIT.
Chase Income Fund, unlike the AVESTA Income Fund, is subject to certain
diversification, distribution and other requirements imposed under the Internal
Revenue Code, which may impact performance.
The Lipper Corporate Debt A Rated Funds Index represents performance of the
largest 30 A rated corporate debt funds. Lipper is an independent mutual fund
performance monitor whose results are based on total return and do not reflect a
sales charge. An individual cannot invest directly in an index.
The Lehman Govt/Credit Index includes the Government and Corporate Bond Indices,
including U.S. Government Treasury and agency securities, corporate and yankee
bonds. The index is unmanaged and reflects the reinvestment of dividends. An
individual cannot invest directly in an index.
11
<PAGE>
--------------------------------------------------------------------------------
CHASE BALANCED FUND
As of June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
How the Fund performed
Chase Balanced Fund, which seeks to provide a balance of current income and
growth of capital, provided a total return of 2.68% (Premier shares) for the
six months ended June 30, 2000, versus a (0.43)% return from the S&P 500 Index.
How the Fund was managed
Equity markets experienced a difficult first half as
the stocks of companies in the technology, telecommunications and
Internet-related sectors continued their meteoric rise in the first three
months, only to come crashing to earth during April and May. Fixed income served
to smooth this volatility, however, and provided a boost to the Fund's
performance.
In spite of its volatility, technology stocks made a greater contribution to
performance than any other equity sector. Our focus on leadership companies with
strong earnings growth prospects helped performance. It was, however, a measure
of the turmoil in technology that the Fund's individual best and worst
performers were both technology stocks. Semiconductor company Intel was the
leading performer, while Microsoft plunged in the face of a potential break-up.
Defensive sectors benefited from the uncertainty. Stocks in the utilities,
healthcare and energy sectors all rose. Utilities were helped further by fears
of rising interest rates, while pharmaceutical companies returned to favor after
a lengthy period of concern regarding their poor drug pipelines. Among
utilities, Enron showed particular strength, while healthcare companies Pfizer
and Warner-Lambert made worthwhile contributions. Rising oil and gas prices
boosted energy stocks.
There were, however, disappointments outside technology. Most notably, consumer
cyclicals fell sharply, with consumer staples also garnering disappointments.
Among others, Wal-Mart Stores, Home Depot and Procter & Gamble fell sharply.
Communications services stocks were also disappointing, with companies such as
AT&T and Sprint making stock price losses.
Fixed income had a broadly positive period, as prices firmed following
early-June employment data, which suggested that Fed rate hikes had succeeded in
subduing economic growth. In addition, 30-year Treasury yields fell sharply,
creating an inverted yield curve.
Where the Fund may be headed
Both equities and bonds await further monthly data to confirm that growth is
slowing. This should reduce market uncertainty. In the long term, we continue to
seek stocks with superior earnings growth prospects. While there has been
considerable recent volatility in technology stocks, we believe that much of the
economy's growth potential remains locked within this industry.
12
<PAGE>
CHASE BALANCED FUND
As of June 30, 2000 (Unaudited)
Percentage of Total Portfolio Investments
[Pie chart data]
<TABLE>
<S> <C>
Technology (22.6%)
Financial (13.8%)
Consumer Cyclicals (12.9%)
Mortgage Backed Pass Through Securities (12.5%)
Health Care (8.0%)
Utilities (6.3%)
U.S. Treasurey Securities (6.0%)
Energy (5.3%)
Capital Goods (4.9%)
Consumer Staples (2.6%)
U.S. Government Agency Securities (2.2%)
Cash Equivalent & Short-Term Paper (1.8%)
Transportation (0.6%)
Basic Materials (0.5%)
</TABLE>
[End Pie chart data]
Top Ten Equity Holdings of the Portfolio
1. General Electric Co. (2.8%) A diversified manufacturing, technology and
services company. Operations include appliance manufacturing, capital services,
information services and electrical distribution.
2. Intel Corp. (2.2%) Designs, manufactures and sells computer components and
related products. Major products include microprocessors, chipsets, embedded
processors and microcontrollers, flash memory products, graphics products,
network and communications products, system management software, conferencing
products and digital imaging products.
3. Microsoft Corp. (2.0%) Develops, manufactures, licenses and supports computer
software products.
4. Cisco Systems, Inc. (2.0%) Supplies data networking products to the corporate
enterprise and public wide area service provider markets. Products include
routers, LAN switches, frame relay/ATM and remote access concentrators.
5. Exxon Mobil Corp. (1.9%) Operates petroleum and petrochemicals businesses on
a worldwide basis. Operations include exploration and production of oil and gas.
6. American International Group, Inc. (1.8%) Writes property and casualty
insurance and life insurance and provides a variety of insurance and
insurance-related services through its subsidiaries in the U.S. and overseas.
7. Wal-Mart Stores, Inc. (1.8%) The "Wal-Mart" Company's discount stores and
"Supercenters" offer merchandise such as apparel, housewares, small appliances,
electronics, hardware and other products.
8. Pfizer, Inc. (1.8%) A research-based, global pharmaceutical company that
discovers, develops, manufactures and markets medicines for humans and animals.
Its products include prescription pharmaceuticals, non-prescription self-
medications and animal health products.
9. American Express Co. (1.5%) Through its subsidiaries, the Company provides
travel-related, financial advisory and international banking services around the
world. Its products include the American Express Card, the Optima Card and
American Express Travelers Cheques.
10. Citigroup, Inc. (1.4%) A diversified financial services holding company that
provides investment services, including asset management, consumer finance
services, property and casualty insurance services, and life insurance services.
Top 10 equity holdings comprised 19.2% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
13
<PAGE>
CHASE BALANCED FUND
As of June 30, 2000 (Unaudited)
Average Annual Total Returns
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Premier Share s 11.89% 16.84% 17.04% 12.91%
----------------------------------------------------------------------------
Investor Shares 11.59% 16.65% 16.93% 12.85%
----------------------------------------------------------------------------
</TABLE>
10 Year Performance*
[Line chart data]
<TABLE>
<CAPTION>
Chase Lipper Lehman S&P
Balanced Balanced Gov't./Credit 500
Fund Funds Index Index Index
<S> <C> <C> <C> <C>
6/90 10000 10000 10000 10000
6/91 10799 10906 11020 10736
6/92 11999 12448 12580 12174
6/93 13433 14235 14235 13831
6/94 13112 14349 14028 14026
6/95 15330 16575 15820 17676
6/96 17305 19032 16555 22264
6/97 21105 22957 17836 29983
6/98 25987 27186 19849 39024
6/99 30081 30324 20386 47902
6/00 33662 31674 21258 51369
</TABLE>
[End Line data]
*Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Balanced Fund, the Lehman Gov't/Credit Index (formerly
the Lehman Intermediate Gov't/Credit Index), the Standard & Poor's 500 Index and
the Lipper Balanced Funds Index from June 30, 1990 to June 30, 2000. The
performance of the Fund assumes the reinvestment of all dividends and capital
gains and does not include a sales charge. The performance of the indices does
not include a sales charge and has been adjusted to reflect the reinvestment of
all dividends and capital gains on the securities included in the benchmark.
Premier Shares carry a $250,000 minimum initial investment and carry no sales
charge.
Investor Shares were introduced on 10/16/98 and have a minimum initial
investment of $2,500. Please note internal expenses are greater for the Investor
Shares class. Performance measurements for the Investor Shares prior to 10/16/98
are based on the predecessor Premier Shares class and do not include Investor
Share class expenses.
Chase Balanced Fund is the successor to the AVESTA Trust-Balanced Fund.
Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual
Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part of the
conversion, the Fund transferred all of its assets to Chase Balanced Fund, a new
investment portfolio of MFIT.
Chase Balanced Fund, unlike the AVESTA Trust-Balanced Fund, is subject to
certain diversification, distribution and other requirements imposed under the
Internal Revenue Code, which may impact performance.
The Lipper Balanced Funds Index represents performance of the largest 30
balanced funds. Each of these funds invests in a portfolio of stocks and bonds.
Lipper is an independent mutual fund performance monitor whose results are based
on total return and do not reflect a sales charge. An individual cannot invest
directly in an index.
The Standard and Poor's 500 Index is an unmanaged broad-based index that
replicates the U.S. stock markets. It includes 500 widely held common stocks.
Total return figures represent the reinvestment of dividends. An individual
cannot invest directly in an index.
The Lehman Gov't/Credit Index includes the Government and Corporate Bond
Indices, including the U.S. Government Treasury and agency securities, corporate
and yankee bonds. The index is unmanaged and reflects the reinvestment of
dividends. An individual cannot invest directly in an index.
14
<PAGE>
--------------------------------------------------------------------------------
CHASE EQUITY INCOME FUND
As of June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
How the Fund performed
Chase Equity Income Fund, which seeks to invest in securities that provide both
capital appreciation and current income, generated a total return of 1.44%
(Premier shares), compared to a (0.43)% return from the S&P 500 Index, for the
six months ended June 30, 2000.
How the Fund was managed
The Fund's defensive qualities served it well in a difficult period. While the
broad S&P 500 Index had an exceptionally volatile six months, and recorded a
marginal loss, the Fund achieved a small gain. The Fund has a relatively light
weighting in high-beta stocks in sectors like technology, and therefore avoided
the worst market instability. It tended to fall less than the S&P 500 Index in
the months when the market declined, while rising almost as much when the market
recovered.
Many of the biggest gains came from the stocks of healthcare companies. These
stocks had failed to participate in the technology-fueled late 1999 market rally
and their prices had reached extremely depressed levels. Much of the price
weakness had been caused by anticipation of legislation that would reduce the
prices Medicare patients pay for drugs. But the price falls appeared overdone,
and as technology stock prices started to fall, many investors sought refuge in
healthcare stocks, including Pfizer and Eli Lilly.
Technology companies, ironically, also made a contribution to performance. In
spite of the sharp correction that hit the sector in March, April and May, the
stock prices of some companies with leading technologies were still ahead at the
end of the six months. Intel, which commands premium pricing for its Pentium
semiconductor chips, made the greatest individual contribution to performance.
Texas Instruments was also strong.
But there was a considerable divergence of performance in the sector. Microsoft
stock plummeted as the software giant's break-up appeared increasingly probable.
The stock was the single biggest destroyer of the Fund's value. Other technology
disappointments were Lucent Technologies and Motorola.
Elsewhere, there were few broad themes and performance was achieved almost on a
stock-by-stock basis. In financials, groups that were active in the financial
markets achieved stock price gains, while traditional retail and commercial
banks fell back. As a result, Merrill Lynch rose in price, while SunTrust Banks
fell back. Procter & Gamble was a notable faller after failing to meet first
quarter earnings expectations.
Where the Fund may be headed
A firm market trend should emerge as it becomes clear whether Fed rate hikes
have succeeded in subduing economic growth and preventing higher inflation.
15
<PAGE>
CHASE EQUITY INCOME FUND
As of June 30, 2000 (Unaudited)
Percentage of Total Portfolio Investments
[Pie chart data]
<TABLE>
<S> <C>
Technology (25.6%)
Financial (15.1%)
Health Care (13.4%)
Utilities (10.8%)
Cash Equivalent & Short-Term Paper (8.2%)
Consumer Cyclicals (7.8%)
Capital Goods (5.9%)
Energy (5.9%)
Consumer Staples (5.3%)
Basic Materials (2.0%)
</TABLE>
[End Pie chart data]
Top Ten Equity Holdings of the Portfolio
1. Intel Corp. (4.4%) Designs, manufactures and sells computer components and
related products. Major products include microprocessors, chipsets, embedded
processors and microcontrollers, flash memory products, graphics products,
network and communications products, system management software, conferencing
products and digital imaging products.
2. General Electric Co. (4.1%) Develops, manufactures and markets products for
the generation, distribution and utilization of electricity. Through General
Electric Capital Services, Inc., offers a variety of financial services
including mutual fund management, financing, asset management and insurance.
General Electric also owns the National Broadcasting Company.
3. International Business Machines Corp. (3.7%) Provides technologies, systems,
products, services, software and financing. It offers products through its
global sales and distribution organization, as well as through a variety of
third party distributors and resellers.
4. Texas Instruments, Inc. (3.2%) Provides semiconductor products, as well as
designs and supplies digital signal processing and analog technologies.
5. American International Group, Inc. (3.2%) Writes property and casualty
insurance and life insurance and provides a variety of insurance and insurance-
related services through its subsidiaries in the U.S. and overseas.
6. Oracle Corp. (3.1%) Supplies software for enterprise information management.
It offers databases and relational servers, application development and decision
support tools and enterprise business applications
7. Citigroup, Inc. (3.1%) Diversified financial services holding company that
provides a broad range of financial services to consumer and corporate customers
around the world. Its services include investment banking, retail brokerage,
corporate banking and cash management products and services.
8. Microsoft Corp. (2.8%) Develops, manufactures, licenses and supports computer
software products.
9. Pfizer, Inc. (2.7%) A research-based, global pharmaceutical company that
discovers, develops, manufactures and markets medicines for humans and animals.
Its products include prescription pharmaceuticals, non-prescription self-
medications and animal health products.
10. Morgan Stanley Dean Witter & Co. (2.6%) Provides financial and investment
products and services worldwide. It offers securities investment, asset
management and credit and transaction services. Its products include mutual
funds and Discover credit cards.
Top 10 equity holdings comprised 32.9% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
16
<PAGE>
CHASE EQUITY INCOME FUND
As of June 30, 2000 (Unaudited)
Average Annual Total Returns
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Premier Shares 3.82% 16.41% 20.72% 14.97%
----------------------------------------------------------------------------
Investor Shares 3.57% 16.22% 20.60% 14.91%
----------------------------------------------------------------------------
</TABLE>
10 Year Performance*
[Line chart data]
<TABLE>
<CAPTION>
Lipper
Chase Equity Large Cap Value S&P 500
Income Fund Funds Index Index
<S> <C> <C> <C>
6/90 10000 10000 10000
6/91 10572 10674 10736
6/92 11591 12183 12174
6/93 13455 14206 13831
6/94 13349 14637 14026
6/95 15740 17846 17676
6/96 19420 21962 22264
6/97 25583 28361 29983
6/98 32193 35390 39024
6/99 38866 41274 47902
6/00 40352 40326 51369
</TABLE>
*Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
This chart represents the comparative performance of $10,000 invested in Premier
Shares of Chase Equity Income, the Standard & Poor's 500 Index and the Lipper
Large Cap Value Funds Index from June 30, 1990 to June 30, 2000. The performance
of the Fund assumes the reinvestment of all dividends and capital gains and does
not include a sales charge. The performance of the indices does not include a
sales charge and has been adjusted to reflect the reinvestment of all dividends
and capital gains on the securities included in the benchmark. Premier Shares
carry a $250,000 minimum initial investment and carry no sales charge.
Investor Shares were introduced on 8/24/98 and have a minimum initial investment
of $2,500. Please note internal expenses are greater for the Investor Shares
class. Performance measurements for the Investor Shares prior to 8/24/98 are
based on the predecessor Premier Shares class and do not include Investor Share
class expenses.
Chase Equity Income Fund is the successor to the AVESTA Trust Equity Income
Fund. Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to
Mutual Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part
of the conversion, the Fund transferred all of its assets to Chase Equity Income
Fund, a new investment portfolio of MFIT.
Chase Equity Income Fund, unlike the AVESTA Equity Income Fund is subject to
certain diversification, distribution and other requirements imposed under the
Internal Revenue Code, which may impact performance.
The Lipper Large Cap Value Funds Index consists of funds that invest in
large-cap value stocks. Lipper is an independent mutual fund performance monitor
whose results are based on total return and do not reflect a sales charge. An
individual cannot invest directly in an index.
The Standard and Poor's 500 Index is an unmanaged broad-based index that
replicates the U.S. stock market. It includes 500 widely held common stocks.
Total return figures include the reinvestment of dividends. An individual cannot
invest directly in an index.
17
<PAGE>
--------------------------------------------------------------------------------
CHASE SMALL CAPITALIZATION FUND
As of June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
How the Fund performed
Chase Small Capitalization Fund, which seeks capital appreciation through
investment in small capitalization stocks, provided a total return of 11.86%
(Premier shares) for the six months ended June 30, 2000, outperforming the S&P
600 Index, which had a return of 6.93%.
How the Fund was managed
During the first six months of 2000, small capitalization stocks ended a long
period of underperformance. Fueled by outstanding earnings growth, they have
consistently outperformed. While the large-cap S&P 500 Index was virtually flat
for the period with a fall of -0.43%, the small-cap S&P 600 Index rose 6.93%.
In the first quarter, small-caps reported significantly higher earnings growth
than large caps. This was the first time in six quarters that they had done so.
Technology stocks made the greatest contribution to Fund performance in spite of
considerable volatility. The technology-laden Nasdaq Index experienced its most
volatile six-month period in 15 years. Management's decision to sell some of the
more highly valued names during April helped the Fund avoid much of the
technology stock correction that gathered pace over the next few weeks. Among
the Fund's leading technology stocks were Actel, Varian and Molecular Devices.
In the capital goods sector, a number of technology-oriented stocks performed
exceptionally well. Among them were Vishay Intertechnology, an electronic
components manufacturer, and Hadco Corp. Hadco, a manufacturer of advanced
electronic interconnect products, was acquired during the period by Sanmina
Corp, an electronics contract manufacturer which is also a fund holding.
The run-up in the prices of oil and gas drove stock price gains among many
energy companies. As these energy price rises appeared increasingly sustainable,
so the stock prices of companies involved in activities like exploration and
production rose. The Fund held stocks such as Pride International, Atwood
Oceanics and Louis Dreyfus Natural Gas Co.
Healthcare stocks had a strong six months as the mapping of the human genome
sparked anticipation of a new era in drug discovery. There were significant
rises in the prices of generic drug, specialty pharmaceutical and biotechnology
companies. Leading healthcare names included Province Healthcare, Inhale
Therapeutic Systems and King Pharmaceuticals.
Where the Fund may be headed
Analysts' forecasts suggest that small-capitalization stocks should continue to
generate higher earnings growth than large stocks for the rest of this year.
This should lead to continued outperformance of the large-cap universe. Such an
outlook depends, however, on the success of recent Fed rate hikes in subduing
economic growth.
18
<PAGE>
CHASE SMALL CAPITALIZATION FUND
As of June 30, 2000 (Unaudited)
Percentage of Total Portfolio Investments
[Pie chart data]
<TABLE>
<S> <C>
Technology (32.6%)
Consumer Cyclicals (20.9%)
Healthe Care (17.4%)
Financial (8.1%)
Energy (5.2%)
Capital Goods (5.0%)
Utilities (3.5%)
Cash Equivalent & Short-Term Paper (3.0%)
Basic Materials (1.3%)
Real Estate (1.2%)
Transportation (1.2%)
Consumer Staples (0.6%)
</TABLE>
[End Pie chart data]
Top Ten Equity Holdings of the Portfolio
1. Samina Corp. (3.2%) Designs, manufactures and markets a wide range of analog
and mixed-signal semiconductors, including integrated circuits, discrete
circuits and assembly products. Its devices are used in computer,
communications, industrial, military-aerospace and automotive applications.
2. Molecular Devices Corp. (2.7%) Designs, develops, manufacturers and markets
bio-analytical measurement systems, including software and consumables. Its
products are designed to accelerate and improve the cost effectiveness of the
drug discovery and development process. Molecular's systems have applications in
many aspects of life science, including therapeutic development.
3. Actel Corp. (2.3%) Designs, develops, manufactures and markets various non-
volatile memory and logic integrated circuits using proprietary technology. Its
devices are used in products for telecommunications, computers, networking,
image processing, industrial and military applications and avionics.
4. Varian, Inc. (2.0%) Develops, manufacturers, sells and services a variety of
scientific instruments and vacuum technologies. It supplies analytical and
research instruments and related equipment for studying the chemical composition
of a range of substances, as well as develops nuclear magnetic resonance
spectrometers and vacuum products.
5. Black Box Corp. (1.9%) A worldwide direct marketer and technical service
provider of computer communications and networking equipment and services.
Catalogs offer businesses throughout the world access to numerous computer com-
munications and networking products. It sells products primarily to businesses
under the BLACK BOX private label.
6. Cree, Inc. (1.7%) Develops and manufactures semiconductor materials and
electronic devices made from silicon carbide (SiC). It uses proprietary
technology to make enabling compound semiconductors such as blue and green light
emitting diodes, SiC crystals used in the production of unique gemstones and SiC
wafers that are sold for device production and research.
7. Province Healthcare Co. (1.7%) Provides health care services in non-urban
markets in the United States. It owns or leases acute care hospitals in several
states. Province also provides management services to primarily non-urban
hospitals in the United States and Puerto Rico.
8. PerkinElmer, Inc. (1.7%) Provides products and systems to the medical,
pharmaceutical, telecommunications, semiconductor and photographic markets
located worldwide. Its products include seals and bellows, hardware and
software, opto-electronics and bioanalytic and diagnostic instrument systems.
9. BJ's Wholesale Club, Inc. (1.7%) Is a merchandise wholesale club chain. It
sells brand name food and general merchandise at discounted prices through clubs
in the eastern United States.
10. Vishay Intertechnology, Inc. (1.6%) Manufactures a broad line of discrete
passive electronic components and discrete active electronic components,
particularly resistors, capacitors, inductors, diodes and transistors.
Top 10 equity holdings comprised 20.5% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
19
<PAGE>
CHASE SMALL CAPITALIZATION FUND
As of June 30, 2000 (Unaudited)
Average Annual Total Returns
<TABLE>
<CAPTION>
Since
Inception
1 Year 3 Years 5 Years 4/1/93
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Premier Shares 21.01% 11.49% 18.79% 14.73%
----------------------------------------------------------------------------
Investor Shares 20.58% 11.29% 18.66% 14.64%
----------------------------------------------------------------------------
</TABLE>
Life of Fund Performance*
[Line chart data]
<TABLE>
<CAPTION>
Chase Lipper
Small Small Cap S&P
Capitalization Core Funds 600
Fund Index Index
<S> <C> <C> <C>
4/93 10000 10000 10000
6/93 10000 10112 10217
6/94 9550 10437 10408
6/95 11450 12588 12525
6/96 15900 16345 15782
6/97 19540 18813 19208
6/98 22382 21998 22941
6/99 22377 21151 22411
6/00 27079 26147 25645
</TABLE>
[End Line data]
*Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
This chart represents the comparative performance of $10,000 invested in Premier
Shares of Chase Small Capitalization Fund, the Standard & Poor's 600 Index and
the Lipper Small Cap Core Funds Index from April 1, 1993 to June 30, 2000. The
performance of the Fund assumes the reinvestment of all dividends and capital
gains and does not include a sales charge. The performance of the Index and the
Average do not include a sales charge and have been adjusted to reflect the
reinvestment of all dividends and capital gains on the securities included in
the benchmark. Premier Shares carry a $250,000 minimum initial investment and
carry no sales charge.
Investor Shares were introduced on 8/12/98 and have a minimum initial investment
of $2,500. Please note internal expenses are greater for the Investor Shares
class. Performance measurements for the Investor Shares prior to 8/12/98 are
based on the predecessor Premier Shares class and do not include Investor Share
class expenses.
The Chase Small Capitalization Fund is the successor to the AVESTA Trust Small
Capitalization Fund. Effective 12/31/97, the AVESTA Trust was converted from a
Texas Trust to Mutual Fund Investment Trust ("MFIT"), a Massachusetts business
trust. As part of the conversion, the Fund transferred all of its assets to
Chase Small Capitalization Fund, a new investment portfolio of MFIT.
The Chase Small Capitalization Fund, unlike the AVESTA Small Capitalization Fund
is subject to certain diversification, distribution and other requirements
imposed under the Internal Revenue Code, which may impact performance.
The Lipper Small Cap Core Funds Index consists of funds that invest in small-
capitalization stocks. Lipper is an independent mutual fund performance monitor
whose results are based on total return and do not reflect a sales charge.
The Standard and Poor's 600 Index is a broad-based index consisting of 600 small
capitalization companies. The index is unmanaged and reflects the reinvestment
of dividend. An individual cannot invest directly in an index.
Small Capitalization funds typically carry more risk than stock funds investing
in well-established blue chip companies since smaller companies generally have a
higher risk of failure. Historically smaller companies' stock has experienced a
greater degree of market volatility than the average stock.
20
<PAGE>
--------------------------------------------------------------------------------
CHASE CORE EQUITY FUND
As of June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
How the Fund performed
Chase Core Equity Fund, which seeks to maximize total investment return with an
emphasis on long-term capital appreciation and current income, provided a total
return of 0.93% (Premier shares), compared to (0.43)% from the S&P 500 Index,
for the six months ended June 30, 2000.
How the Fund was managed
Equity markets experienced a difficult first half as stocks of companies in the
technology, telecommunications and Internet-related sectors continued their
meteoric rise in the first three months, only to come crashing down during April
and May. The technology-laden Nasdaq Index fell 2.54% in the period, but this
small loss masked considerable volatility.
In spite of this, the technology sector made the greatest contribution to Fund
performance. Our focus on leadership companies with strong earnings growth
prospects helped performance. But it was a measure of technology turmoil that
both the Fund's best and worst performers were technology stocks. Intel, the
semiconductor company, was the leading performer, while Microsoft plunged in the
face of possible break-up.
Defensive sectors benefited from the uncertainty. Stocks in the utilities,
healthcare and energy sectors all rose. Utilities were helped further by fears
of rising interest rates, while pharmaceutical companies returned to favor after
a lengthy period of concern regarding their poor drug pipelines. Among
utilities, Enron showed particular strength, while healthcare companies Pfizer
and Warner-Lambert made worthwhile contributions.
Rising oil and gas prices boosted energy stocks. Investors bought energy company
stocks as it appeared increasingly likely that price rises were sustainable and
would boost profits. BJ Services, the exploration and production company, made a
significant contribution to performance, as did integrated energy giant Royal
Dutch Petroleum.
There were, however, disappointments outside technology. Most notably, consumer
cyclicals fell sharply, with consumer staples also having lackluster results.
Companies such as Wal-Mart Stores, Home Depot and Procter & Gamble fell sharply.
Communications services stocks were also disappointing, with companies like AT&T
and Sprint making stock price losses.
Where the Fund may be headed
Market uncertainty should recede as it becomes clear whether Fed rate rises have
succeeded in subduing economic growth. Employment data reported in early June
suggested this was the case, but further monthly data is required to confirm the
trend. In the long term, we continue to seek stocks with outstanding earnings
growth prospects. While there has been considerable recent volatility in
technology stocks, we believe that much of the economy's growth potential
remains locked within this sector.
21
<PAGE>
CHASE CORE EQUITY FUND
As of June 30, 2000 (Unaudited)
Percentage of Total Portfolio Investments
[Pie chart data]
<TABLE>
<S> <C>
Technology (33.0%)
Consumer Cyclicals (15.0%)
Financial (13.1%)
Health Care (10.8%)
Utilities (8.3%)
Capital Goods (5.9%)
Energy (5.6%)
Consumer Staples (3.4%)
Cash Equivalent & Short-Term Paper (3.1%)
Transportation (1.0%)
Basic Materials (0.8%)
</TABLE>
[End chart data]
Top Ten Equity Holdings of the Portfolio
1. General Electric Co. (4.5%) Develops, manufactures and markets products for
the generation, distribution and utilization of electricity. Through General
Electric Capital Services, Inc., offers a variety of financial services
including mutual fund management, financing, asset management and insurance.
General Electric also owns the National Broadcasting Company.
2. Intel Corp. (3.6%) Designs, manufactures and sells computer components and
related products. Major products include microprocessors, chipsets, embedded
processors and microcontrollers, flash memory products, graphics products,
network and communications products, system management software, conferencing
products and digital imaging products.
3. Cisco Systems, Inc. (3.2%) Supplies data networking products to the corporate
enterprise and public wide area service provider markets. Products include
routers, LAN switches, frame relay/ATM and remote access concentrators.
4. Microsoft Corp. (3.2%) Develops, manufactures, licenses and supports computer
software products.
5. Exxon Mobil Corp. (3.0%) Operates petroleum and petrochemicals businesses on
a worldwide basis. Operations include exploration and production of oil and gas.
6. American International Group, Inc. (3.0%) Writes property and casualty
insurance and life insurance and provides a variety of insurance and insurance-
related services through its subsidiaries in the U.S. and overseas.
7. Wal-Mart Stores, Inc. (2.9%) The "Wal-Mart" Company's discount stores and
"Supercenters" offer merchandise such as apparel, housewares, small appliances,
electronics, hardware and other products
8. Pfizer, Inc. (2.8%) A research-based, global pharmaceutical company that
discovers, develops, manufactures and markets medicines for humans and animals.
Its products include prescription pharmaceuticals, non-prescription self-
medications and animal health products.
9. American Express Co. (2.4%) Through its subsidiaries, the Company provides
travel-related, financial advisory and international banking services around the
world. Its products include the American Express Card, the Optima Card and
American Express Travelers Cheques.
10. Citigroup, Inc. (2.2%) A diversified financial services holding company that
provides investment services, including asset management, consumer finance
services, property and casualty insurance services, and life insurance services.
Top 10 equity holdings comprised 30.8% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
22
<PAGE>
CHASE CORE EQUITY FUND
As of June 30, 2000 (Unaudited)
Average Annual Total Returns
<TABLE>
<CAPTION>
Since
Inception
1 Year 3 Years 5 Years 4/1/93
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Premier Shares 10.32% 22.07% 24.51% 18.77%
----------------------------------------------------------------------------
Investor Shares 10.08% 21.88% 24.39% 18.69%
----------------------------------------------------------------------------
</TABLE>
Life of Fund Performance*
[Line chart data]
<TABLE>
<CAPTION>
Chase Lipper
Core Equity Large Cap Core S&P 500
Fund Funds Index Index
<S> <C> <C> <C>
4/93 10000 10000 10000
6/93 10010 10121 10048
6/94 10099 10231 10189
6/95 11627 12349 12840
6/96 14306 15176 16174
6/97 19126 19657 21780
6/98 25015 25464 29348
6/99 31565 30150 34798
6/00 34796 32979 37316
</TABLE>
[End Line data]
*Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Core Equity Fund, the Standard & Poor's 500 Index and
the Lipper Large Cap Core Funds Index from April 1, 1993 to June 30, 2000. The
performance of the Fund assumed the reinvestment of all dividends and capital
gains and does not include a sales charge. The performance of the indices does
not include a sales charge and has been adjusted to reflect the reinvestment of
all dividends and capital gains on the securities included in the benchmark.
Premier Shares carry a $250,000 minimum initial investment and carry no sales
charge.
Investor Shares were introduced on 9/10/98 and have a minimum initial investment
of $2,500. Please note internal expenses are greater for the Investor Shares
class. Performance measurements for the Investor Shares prior to 9/10/98 are
based on the predecessor Premier Shares class and do not include Investor Share
expenses.
Chase Core Equity Fund is the successor to the AVESTA Trust Core Equity Fund.
Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual
Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part of the
conversion, the Fund transferred all of its assets to Chase Core Equity Fund, a
new investment portfolio of MFIT.
Chase Core Equity Fund, unlike the AVESTA Core Equity Fund, is subject to
certain diversification, distribution and other requirements imposed under the
Internal Revenue Code, which may impact performance.
The Lipper Large Cap Core Funds Index consists of funds that invest in both
growth and value stocks. Lipper is an independent mutual fund performance
monitor whose results are based on total return and do not reflect a sales
charge. An individual cannot invest directly in an index.
The Standard and Poor's 500 Index is an unmanaged broad-based index that
replicates the U.S. stock market. It includes 500 widely held common stocks.
Total return figures include the reinvestment of dividends. An individual cannot
invest directly in the index.
23
<PAGE>
--------------------------------------------------------------------------------
CHASE EQUITY GROWTH FUND
As of June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
How the Fund performed
Chase Equity Growth Fund, which seeks to provide capital appreciation through
investment in growth stocks, generated a total return of 1.91% (Premier
shares), compared to the 2.63% return from the S&P/BARRA Growth Index, for the
six months ended June 30, 2000.
How the Fund was managed
For the first few months of 2000, the divergence between 'old' and 'new' economy
stocks continued to grow, as technology valuations became increasingly extended.
In March, however, the technology sector began a prolonged and violent
correction that lasted through May. By the end of the first half, investors were
taking a stock-by-stock approach that rewarded well-managed companies with good
prospects, and punished those that disappointed.
In spite of the volatility, technology names still made the greatest
contribution to performance. The stocks of companies with perceived competitive
advantage and strong growth prospects held up relatively well. Names like Intel,
the maker of Pentium semiconductor chips, EMC Corp and Applied Materials
performed well.
But there was a wide dispersion of performance in the sector. Microsoft
stock--dogged by fears of a corporate break-up--fell sharply. Some of Internet
stocks also ended the period in negative territory. America Online and Yahoo
both nursed substantial losses.
Many defensive 'old economy' names had a strong first half. Healthcare stocks,
in particular, bounced back from depressed levels. These companies had been
overshadowed during 1999 by fears of legislation that would reduce the prices
Medicare patients pay for drugs. But the price falls appeared overdone, and as
technology stock prices started to weaken, investors sought refuge in drug
stocks like Pfizer, Warner-Lambert and Eli Lilly. Biotechnology companies, like
Amgen, received a boost as the mapping of the human genome sparked anticipation
of a new era in drug discovery.
Investors were unforgiving of stocks that disappointed. Procter & Gamble stock
plummeted in early March after the company announced extremely disappointing
first quarter earnings.
Where the Fund may be headed
For the market as a whole, the big question remains whether the economy is
slowing to the extent that no further interest-rate rises are necessary. The
FOMC refrained from tightening in late June as weaker economic and monetary data
suggested that the 175 basis points of tightening over the past year might be
beginning to lower the trend rate of economic growth, and to reduce rising price
pressures. But the extent of any slowdown is still an open question.
24
<PAGE>
CHASE EQUITY GROWTH FUND
As of June 30, 2000 (Unaudited)
Percentage of Total Portfolio Investments
[Pie chart data]
<TABLE>
<S> <C>
Technology (49.8%)
Health Care (18.0%)
Consumer Cyclicals (13.8%)
Capital Goods (6.1%)
Financial (6.0%)
Consumer Staples (2.5%)
Cash Equivalent & Short-Term Paper (2.3%)
Utilities (1.5%)
</TABLE>
[End Pie chart data]
Top Ten Equity Holdings of the Portfolio
1. Intel Corp. (6.2%) Designs, manufactures and sells computer components and
related products. Major products include microprocessors, chipsets, embedded
processors and microcontrollers, flash memory products, graphics products,
network and communications products, system management software, conferencing
products and digital imaging products.
2. Cisco Systems, Inc. (5.5%) Supplies data networking products to the corporate
enterprise and public wide area service provider markets. Products include
routers, LAN switches, frame relay/ATM and remote access concentrators.
3. General Electric Co. (5.5%) Develops, manufactures and markets products for
the generation, distribution and utilization of electricity. Through General
Electric Capital Services, Inc., offers a variety of financial services
including mutual fund management, financing, asset management and insurance.
General Electric also owns the National Broadcasting Company.
4. EMC Corp. (5.0%) Provides enterprise storage systems, software, networks and
services.
5. Applied Materials, Inc. (4.6%) Develops, manufactures, markets and services
semiconductor wafer fabrication equipment and related spare parts for the
worldwide semiconductor industry.
6. Pfizer, Inc. (4.6%) A research-based, global pharmaceutical company that
discovers, develops, manufactures and markets medicines for humans and animals.
Its products include prescription pharmaceuticals, non-prescription self-
medications and animal health products.
7. Novellus Systems, Inc. (3.8%) Manufactures, markets and services advanced
automated wafer fabrication systems for the deposition of thin films.
8. Microsoft Corp. (3.6%) Develops, manufactures, licenses and supports computer
software products.
9. Wal-Mart Stores, Inc. (3.6%) The "Wal-Mart" Company's discount stores and
"Supercenters" offer merchandise such as apparel, housewares, small appliances,
electronics, hardware and other products.
10. Amgen, Inc. (3.5%) Discovers, develops, manufactures and markets human
therapeutics based on cellular and molecular biology. Focuses its research on
secreted protein and small molecule therapeutics.
Top 10 equity holdings comprised 45.9% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
25
<PAGE>
CHASE EQUITY GROWTH FUND
As of June 30, 2000 (Unaudited)
Average Annual Total Returns
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Premier Share s 20.14% 28.06% 27.81% 17.46%
----------------------------------------------------------------------------
Investor Shares 19.83% 27.84% 27.68% 17.40%
----------------------------------------------------------------------------
</TABLE>
10 Year Performance*
[Line chart data]
<TABLE>
<CAPTION>
Chase Lipper S&P
Equity Growth Large Cap Growth Barra Growth
Fund Funds Index Index
<S> <C> <C> <C>
6/90 10000 10000 10000
6/91 10083 10578 10893
6/92 11421 12156 12361
6/93 12464 13805 13350
6/94 12189 13978 13315
6/95 14658 17568 17407
6/96 17530 21803 22453
6/97 23799 27896 30645
6/98 32164 36741 41281
6/99 41599 46603 52920
6/00 49982 56077 62771
</TABLE>
*Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Equity Growth Fund, the Standard and Poor's Barra Growth
Index and Lipper Large Cap Growth Funds Index from June 30, 1990 to June 30,
2000. The performance of the Fund assumes the reinvestment of all dividends and
capital gains and does not include a sales charge. The performance of the
indices does not include a sales charge and has been adjusted to reflect the
reinvestment of all dividends and capital gains on the securities included in
the benchmark. Premier Shares carry a $250,000 minimum initial investment and
carry no sales charge.
Investor Shares were introduced on 8/13/98 and have a minimum initial investment
of $2,500. Please note internal expenses are greater for the Investor Shares
class. Performance measurements for the Investor Shares prior to 8/13/98 are
based on the predecessor Premier Shares class and do not include Investor Share
class expenses.
Chase Equity Growth Fund is the successor to the AVESTA Trust Equity Growth
Fund. Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to
Mutual Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part
of the conversion, the Fund transferred all of its assets to Chase Equity Growth
Fund, a new investment portfolio of MFIT.
Chase Equity Growth Fund, unlike the AVESTA Equity Growth Fund, is subject to
certain diversification, distribution and other requirements imposed under the
Internal Revenue Code, which may impact performance.
The Lipper Large Cap Growth Funds Index consists of funds that invest in
large-cap growth stocks. Lipper is an independent mutual fund performance
monitor whose results are based on total return and do not reflect a sales
charge. An individual cannot invest directly in an index.
The Standard and Poor's Barra Growth Index is an unmanaged broad-based index
that replicates the U.S. stock market. It includes 500 widely held common
stocks. Total return figures include the reinvestment of dividends. An
individual cannot invest directly in an index.
26
<PAGE>
--------------------------------------------------------------------------------
CHASE MONEY MARKET FUND
Portfolio of Investments
--------------------------------------------------------------------------------
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
----------------------------------------------------------------------------------------
Money Market Instruments -- 99.4%
----------------------------------------------------------------------------------------
<S> <C> <C>
U.S. Government Agency Security -- 3.0%
---------------------------------------
$10,000 Federal Home Loan Bank, DN, 6.13%, 12/22/00 $ 9,721
(Cost $9,721)
State and Municipal Obligation -- 1.5%
--------------------------------------
5,000 Texas State, Taxable, Veterans Housing Assistance, Ser.
A-2, FRDO, 6.60%, 07/03/00 5,000
(Cost $5,000)
Corporate Notes & Bonds -- 54.1%
--------------------------------
Automotive -- 12.5%
10,000 Chrysler Financial Co., LLC, Ser. R, MTN, FRN, 6.74%,
08/18/00 10,006
10,000 Ford Motor Credit Co., MTN, FRN, 6.74%, 08/18/00 9,999
10,000 General Motors Acceptance Corp., MTN, FRN, 7.00%,
08/09/00 10,010
Toyota Motor Credit Corp., MTN,
3,000 5.76%, 07/06/00 3,000
4,000 FRN, 6.80%, 08/18/00 4,000
4,000 FRN, 6.81%, 07/12/00 4,000
------
41,015
Banking -- 1.2%
4,000 American Express Centurion Bank, FRN, 6.85%, 09/29/00 4,000
Computers/Computer Hardware -- 0.6%
2,000 IBM Credit Corp., MTN, 5.93%, 08/07/00 2,000
Financial Services -- 26.6%
10,000 Associates Corp. of North America, SUB, FRN, 6.77%,
09/15/00 9,999
12,000 Bear Stearns Co., Inc., Ser. B, MTN, FRN, 6.71%, 07/24/00 11,999
5,000 Bollingbrent LTD Partnership, Ser. 1999, FRN, 6.77%,
07/03/00 5,000
10,000 CIT Group, Inc., MTN, FRN, 6.80%, 09/15/00
Citicorp, Ser. C, MTN, FRN, 9,998
5,000 6.46%, 07/24/00 5,005
9,000 7.31%, 11/22/00 9,008
6,000 Goldman Sachs Group LP, Ser. A, MTN, FRN, #, 6.36%,
07/17/00 6,000
5,000 Homeside Lending, Inc., MTN, FRN, 6.41%, 07/24/00 5,004
5,000 International Lease Finance Corp., FRN, 6.45%, 08/01/00 5,003
Merrill Lynch & Co., Inc., FRN,
5,000 6.72%, 08/14/00 5,000
2,000 MTN, 6.80%, 08/03/00 2,001
Morgan Stanley Dean Witter & Co.,
8,000 6.95%, 08/10/00 8,011
5,000 MTN, FRN, 7.32%, 08/14/00 5,011
------
87,039
Machinery & Engineering Equipment -- 7.7%
Caterpillar Financial Services Corp., Ser. F,
10,000 6.41%, 07/10/00 10,010
5,000 6.89%, 09/01/00 5,001
10,000 John Deere Capital Corp., MTN, FRN, 6.97%, 08/09/00 10,009
------
25,020
</TABLE>
See notes to financial statements.
27
<PAGE>
CHASE MONEY MARKET FUND
Portfolio of Investments (Continued)
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
------------------------------------------------------------------------------------------
Money Market Instruments -- Continued
------------------------------------------------------------------------------------------
<S> <C> <C>
Telecommunications -- 4.9%
$ 6,000 AT&T Corp., FRN, #, 6.24%, 07/13/00 $ 6,000
10,000 SBC Communications, Inc., FRN, #, 6.68%,
08/15/00 9,998
--------
15,998
Utilities -- 0.6%
2,000 National Rural Utilities Co., Ser. C., MTN, FRN, 6.81%, 09/
08/00 2,000
--------------------------------------------------------------------------
Total Corporate Notes & Bonds 177,072
(Cost $177,072)
--------------------------------------------------------------------------
Commercial Paper -- 19.1%
-------------------------
Asset Backed Securities -- 16.1%
3,487 Barton Capital Corp., 6.61%, 07/25/00 3,472
9,463 Blue Ridge Asset Funding Corp., 6.61%, 07/06/00 9,454
6,000 Eureka Securitization Inc., #, 6.70%, 08/09/00 5,957
15,000 Montauk Funding Corp., 6.69%, 08/17/00 14,871
9,560 Old Line Funding Corp., #, 6.60%, 07/17/00 9,532
9,476 Victory Receivables, 6.72%, 07/13/00 9,455
--------
52,741
Banking -- 3.0%
10,000 Credit Suisse First Boston Corp. (Switzerland), 6.32%, 09/
13/00 9,874
--------------------------------------------------------------------------
Total Commercial Paper 62,615
(Cost $62,615)
--------------------------------------------------------------------------
Certificates of Deposit -- 19.9%
--------------------------------
10,000 Bayerische Hypo- und Vereinsbank AG, 9,997
(Germany), (Yankee), Floating Rate, 6.59%, 07/28/00
5,000 Bayerische Landesbank Girozentrale, 4,998
(Germany), (Yankee), Floating Rate, 6.58%, 07/17/00
10,000 Commerzbank AG, (Germany), (Yankee), 6.55%, 01/08/01 9,999
10,000 Dresdner Bank AG, (Germany), (Yankee), Floating Rate,
6.59%, 07/28/00 9,997
5,000 First Union National Bank, Floating Rate, 6.86%,
09/25/00 5,000
10,000 Landesbank Hessen-Thueringen Girozentrale
(Germany), (Yankee), 6.90%, 04/30/01 9,998
10,000 Norddeutsche Landesbank Girozentrale (Germany),
(Yankee), 6.60%, 01/18/01 9,997
5,000 Svenska Handelsbanken, Inc., (Sweden), (Yankee), 6.80%,
02/14/01 4,999
--------------------------------------------------------------------------
Total Certificates of Deposit 64,985
(Cost $64,985)
--------------------------------------------------------------------------
Repurchase Agreement -- 1.8%
----------------------------
5,762 Goldman Sachs Group LP, Tri Party, 6.88%, 07/03/00
(Dated 06/30/00, Proceeds $5,765, Secured by FHLMC,
$5,795, 8.00%, due 08/01/23; Market Value $5,877) 5,762
(Cost $5,762)
------------------------------------------------------------------------------------------
Total Investments--99.4% $325,155
(Cost $325,155)
------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
28
<PAGE>
--------------------------------------------------------------------------------
CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND
Portfolio of Investments
-------------------------------------------------------------------------------
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
------------------------------------------------------------------------------------
Long-Term Investments -- 92.8%
------------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Securities -- 16.5%
---------------------------------
U.S. Treasury Notes & Bonds,
$ 800 5.50%, 12/31/00 $ 796
1,000 5.63%, 02/15/06 970
1,000 6.00%, 08/15/09 992
1,100 6.88%, 05/15/06 1,133
500 7.00%, 07/15/06 518
500 10.75%, 02/15/03 550
----------------------------------------------------------------------
Total U.S. Treasury Securities 4,959
(Cost $4,958)
----------------------------------------------------------------------
U.S. Government Agency Securities -- 61.0%
------------------------------------------
1,330 Federal Farm Credit Bank, MTN, 6.90%, 05/01/02 1,328
1,300 Federal Home Loan Bank, 6.79%, 04/17/01 1,298
Federal Home Loan Mortgage Corp.,
1,500 6.25%, 10/15/02 1,478
4,500 7.00%, 02/15/03 4,498
1,000 7.38%, 05/15/03 1,010
Federal National Mortgage Association,
1,500 5.25%, 01/15/03 1,440
1,000 6.00%, 05/15/08 933
1,500 6.25%, 11/15/02 1,477
1,000 6.50%, 08/15/04 981
1,000 6.63%, 09/15/09 966
1,000 7.10%, 10/18/04 993
2,000 7.13%, 02/15/05 2,008
----------------------------------------------------------------------
Total U.S. Government Agency Securities 18,410
(Cost $18,475)
----------------------------------------------------------------------
Mortgage Backed Securities -- 15.3%
-----------------------------------
Collateralized Mortgage Obligation -- 4.6%
1,405 Federal Home Loan Mortgage Corp., Ser. 2196, Class
MA, 7.00%, 11/15/06 1,388
Residential Mortgage Backed Pass-Through Securities -- 10.7%
Federal National Mortgage Association,
894 Pool 190806, 6.00%, 05/01/01 886
2,414 Pool 251901, 6.50%, 08/01/13 2,331
----------------------------------------------------------------------
Total Mortgage Backed Securities 4,605
(Cost $4,731)
------------------------------------------------------------------------------------
Total Long-Term Investments 27,974
(Cost $28,164)
------------------------------------------------------------------------------------
Short-Term Investment -- 8.9%
------------------------------------------------------------------------------------
U.S. Government Agency Security -- 8.9%
---------------------------------------
2,669 Federal Home Loan Bank, DN, 6.57%, 07/03/00 2,668
(Cost $2,668)
------------------------------------------------------------------------------------
Total Investments -- 101.7% $30,642
(Cost $30,832)
------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
29
<PAGE>
--------------------------------------------------------------------------------
CHASE INTERMEDIATE TERM BOND FUND
Portfolio of Investments
--------------------------------------------------------------------------------
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
--------------------------------------------------------------------------------------
Long-Term Investments -- 86.6%
--------------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Securities -- 8.2%
----------------------------------
U.S. Treasury Notes & Bonds,
$ 800 5.75%, 06/30/01 $ 794
300 6.13%, 08/15/29 303
600 6.25%, 08/15/23 605
1,900 8.13%, 08/15/19 2,297
----------------------------------------------------------------------
Total U.S. Treasury Securities 3,999
(Cost $4,016)
----------------------------------------------------------------------
U.S. Government Agency Securities -- 9.0%
-----------------------------------------
Federal Home Loan Bank,
1,400 5.40%, 03/01/04 1,324
500 7.00%, 04/02/07 498
Federal Home Loan Mortgage Corp.,
1,300 5.75%, 03/15/09 1,184
650 6.25%, 07/15/04 632
800 Federal National Mortgage Association, 6.50%, 08/15/04 785
----------------------------------------------------------------------
Total U.S. Government Agency Securities 4,423
(Cost $4,512)
----------------------------------------------------------------------
Foreign Government Security -- 1.6%
-----------------------------------
800 Quebec Province (Canada), 7.50%, 09/15/29 786
(Cost $786)
Corporate Notes & Bonds -- 38.4%
--------------------------------
Aerospace -- 0.7%
365 Raytheon Co., #, 7.90%, 03/01/03 367
Automotive -- 3.3%
800 Daimler Chrysler North America Holding Corp.
(Germany), 8.00%, 06/15/10 819
750 TRW, Inc., #, 6.45%, 06/15/01 741
-----
1,560
Banking -- 1.3%
750 U.S. Bank, NA, 5.70%, 12/15/08 645
Chemicals -- 1.0%
500 Rohm & Haas Co., 7.40%, 07/15/09 497
Computers/Computer Hardware -- 1.6%
800 Hewlett-Packard Co., 7.15%, 06/15/05 801
Consumer Products -- 1.6%
800 Procter & Gamble Co., 6.60%, 12/15/04 784
Electronics/Electrical Equipment -- 1.4%
700 General Electric Capital Corp., MTN, 5.91%, 05/07/01 693
Financial Services -- 11.2%
900 American Express Co., 8.50%, 08/15/01 913
600 Associates Corp. of North America, 6.63%, 05/15/01 596
600 International Lease Finance Corp., 5.95%, 06/01/01 592
800 Lehman Brothers Holdings, Inc., 7.75%, 01/15/05 793
1,000 Merrill Lynch & Co., Inc., MTN, 6.10%, 12/10/01 989
800 Morgan Stanley Dean Witter & Co., 7.75%, 06/15/05 806
National Rural Utilities Cooperative Finance Corp.,
300 5.50%, 01/15/05 279
500 6.13%, 05/15/05 475
-----
5,443
</TABLE>
See notes to financial statements.
30
<PAGE>
CHASE INTERMEDIATE TERM BOND FUND
Portfolio of Investments (Continued)
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
-----------------------------------------------------------------------------------------
Long-Term Investments -- Continued
-----------------------------------------------------------------------------------------
<S> <C> <C>
Food/Beverage Products -- 1.6%
$ 800 Coca-Cola Enterprises, 7.13%, 09/30/09 $ 776
Insurance -- 1.5%
750 GE Global Insurance Holding Corp., 7.75%, 06/15/30 745
Oil & Gas -- 2.3%
800 Amerada Hess Corp., 7.88%, 10/01/29 782
330 PEMEX Finance LTD (Cayman Islands), #, 9.03%,
02/15/11 336
------
1,118
Paper/Forest Products -- 1.6%
800 International Paper Co., #, 8.13%, 07/08/05 805
Pipelines -- 1.1%
550 Enron Corp., 7.88%, 06/15/03 553
Retailing -- 1.6%
800 Wal-Mart Stores, Inc., 6.88%, 08/10/09 781
Telecommunications -- 4.3%
800 WorldCom, Inc., 7.55%, 04/01/04 795
750 Metronet Communications Corp. (Canada), SUB, 0.00%,
06/15/03 608
650 Vodafone AirTouch PLC (United Kingdom), #, 7.63%,
02/15/05 650
------
2,053
Utilities -- 2.3%
440 Cilcorp Inc., 8.70%, 10/15/09 443
700 Israel Electronic Corp. (Israel), MTN, #, 8.25%, 10/15/09 706
------
1,149
------------------------------------------------------------------------
Total Corporate Notes & Bonds 18,770
(Cost $18,844)
------------------------------------------------------------------------
Mortgage Backed Securities -- 29.4%
-----------------------------------
Residential Mortgage Backed Pass-Through Securities -- 29.4%
1,051 Federal Home Loan Mortgage Corp., Gold Pool C17245,
7.00%, 11/01/28 1,016
Federal National Mortgage Association,
601 Pool 253033, 7.00%, 02/01/15 589
334 Pool 398212, 6.50%, 02/01/13 323
1,545 Pool 398265, 6.00%, 03/01/28 1,416
895 Pool 429362, 6.00%, 08/01/29 819
900 Pool 442508, 6.00%, 09/01/13 852
2,260 Pool 498091, 6.50%, 05/01/29 2,133
418 Pool 510435, 6.50%, 01/01/15 403
743 Pool 527266, 6.50%, 11/01/14 716
1,494 Pool 528399, 8.00%, 01/01/30 1,500
Government National Mortgage Association,
746 Pool 448704, 7.50%, 10/15/27 741
1,394 Pool 486598, 6.50%, 10/15/28 1,323
1,092 Pool 504549, 7.00%, 09/15/29 1,061
1,497 Pool 508316, 8.00%, 02/15/30 1,513
-------------------------------------------------------------------------
Total Mortgage Backed Securities 14,405
(Cost $14,561)
-----------------------------------------------------------------------------------------
Total Long-Term Investments 42,383
(Cost $42,719)
-----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
31
<PAGE>
CHASE INTERMEDIATE TERM BOND FUND
Portfolio of Investments (Continued)
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
------------------------------------------------------------------------------
Short-Term Investment -- 12.6%
------------------------------------------------------------------------------
<S> <C> <C>
U.S. Government Agency Security -- 12.6%
-----------------------------------------
$6,185 Federal Home Loan Bank, DN, 6.57%, 07/03/00 $ 6,183
(Cost $6,183)
------------------------------------------------------------------------------
Total Investments -- 99.2% $48,566
(Cost $48,902)
------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
32
<PAGE>
--------------------------------------------------------------------------------
CHASE U.S. GOVERNMENT SECURITIES FUND
Portfolio of Investments
--------------------------------------------------------------------------------
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
--------------------------------------------------------------------------------
Long-Term Investments -- 93.4%
--------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Securities -- 28.0%
---------------------------------
U.S. Treasury Notes & Bonds,
$ 240 6.13%, 08/15/29 $ 242
300 6.50%, 08/31/01 300
1,000 8.13%, 08/15/19 1,209
------------------------------------------------------------------
Total U.S. Treasury Securities 1,751
(Cost $1,681)
------------------------------------------------------------------
U.S. Government Agency Securities -- 7.7%
-----------------------------------------
Federal National Mortgage Association,
250 6.38%, 06/15/09 238
250 6.50%, 08/15/04 245
------------------------------------------------------------------
Total U.S. Government Agency Securities 483
(Cost $485)
------------------------------------------------------------------
Mortgage Backed Securities -- 57.7%
-----------------------------------
Collateralized Mortgage Obligation -- 1.4%
94 Government National Mortgage Association, Ser.
1999-8, Class A, 6.25%, 06/16/25 90
Residential Mortgage Backed Pass-Through
Securities -- 56.3%
383 Federal Home Loan Mortgage Corp., Gold Pool E00766,
7.00%, 12/01/14 376
Federal National Mortgage Association,
283 Pool 252921, 7.50%, 11/01/14 282
597 Pool 511599, 8.00%, 12/01/29 600
464 Pool 523930, 8.00%, 11/01/29 466
645 Pool 525908, 7.00%, 12/01/29 623
Government National Mortgage Association,
393 Pool 434628, 8.00%, 12/15/29 397
250 Pool 473829, 6.50%, 01/15/29 237
199 Pool 509443, 9.00%, 12/15/29 206
323 Pool 510845, 7.50%, 12/15/29 321
------------------------------------------------------------------
Total Mortgage Backed Securities 3,598
(Cost $3,633)
--------------------------------------------------------------------------------
Total Long-Term Investments 5,832
(Cost $5,799)
--------------------------------------------------------------------------------
Short-Term Investment -- 5.5%
--------------------------------------------------------------------------------
U.S. Government Agency Security -- 5.5%
---------------------------------------
343 Federal Home Loan Bank, DN, 6.57%, 07/03/00 343
(Cost $343)
--------------------------------------------------------------------------------
Total Investments -- 98.9% $6,175
(Cost $6,142)
--------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
33
<PAGE>
--------------------------------------------------------------------------------
CHASE INCOME FUND
Portfolio of Investments
--------------------------------------------------------------------------------
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
--------------------------------------------------------------------------------
Long-Term Investments -- 89.2%
--------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Securities -- 13.9%
---------------------------------
U.S. Treasury Notes & Bonds,
$1,400 7.13%, 02/15/23 - $1,556
2,000 7.63%, 02/15/25 - 2,365
3,400 8.13%, 08/15/19 - 4,111
500 11.25%, 02/15/15 737
----------------------------------------------------------------
Total U.S. Treasury Securities 8,769
(Cost $8,571)
----------------------------------------------------------------
U.S. Government Agency Securities -- 8.3%
-----------------------------------------
Federal Home Loan Bank,
1,600 7.25%, 05/13/05 1,614
1,600 7.63%, 05/15/07 1,644
Federal National Mortgage Association,
400 6.00%, 07/15/49 366
400 6.50%, 07/15/49 377
1,250 Government National Mortgage Association, 8.00%,
07/15/49 1,258
----------------------------------------------------------------
Total U.S. Government Agency Securities 5,259
(Cost $5,243)
----------------------------------------------------------------
Foreign Government Securities -- 2.4%
-------------------------------------
Quebec Province (Canada),
750 6.50%, 01/17/06 - 724
800 7.50%, 09/15/29 786
----------------------------------------------------------------
Total Foreign Government Securities 1,510
(Cost $1,526)
----------------------------------------------------------------
Corporate Notes & Bonds -- 26.7%
--------------------------------
Aerospace -- 1.1%
700 Raytheon Co., #, 7.90%, 03/01/03 - 704
Automotive -- 2.9%
Ford Motor Credit Co.,
1,000 6.25%, 12/08/05 - 936
900 7.38%, 10/28/09 - 871
------
1,807
Banking -- 2.3%
800 Bank of America Corp., 7.80%, 02/15/10 - 796
700 Korea Development Bank (South Korea), 6.50%,
11/15/02 - 678
------
1,474
Broadcasting/Cable -- 0.8%
500 Comcast Corp., 10.25%, 10/15/01 - 517
Diversified -- 0.8%
500 Textron, Inc., 6.38%, 07/15/04 - 477
Financial Services -- 2.7%
Lehman Brothers Holdings Inc.,
750 6.63%, 02/05/06 - 701
1,000 MTN, FRN, 6.60%, 09/04/01 - 1,000
------
1,701
</TABLE>
See notes to financial statements.
34
<PAGE>
CHASE INCOME FUND
Portfolio of Investments (Continued)
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
-----------------------------------------------------------------------------------------
Long-Term Investments -- Continued
-----------------------------------------------------------------------------------------
<S> <C> <C>
Insurance -- 2.1%
$1,000 Conseco, Inc., 8.50%, 10/15/02 - $ 720
600 GE Global Insurance Holding Corp., 7.75%, 06/15/30 - 596
------
1,316
Multi-Media -- 2.5%
650 Clear Channel Communications, Inc., 7.88%, 06/15/05 652
1,100 Time Warner Inc., 6.63%, 05/15/29 - 908
------
1,560
Oil & Gas -- 1.2%
800 YPF Sociedad Anonima (Argentina), 7.25%, 03/15/03 - 773
Packaging -- 0.8%
500 Tenneco Packaging, Inc., 8.00%, 04/15/07 - 502
Pipelines -- 0.9%
600 El Paso Energy Corp., 6.75%, 05/15/09 - 558
Retailing -- 2.3%
675 SAKS Inc., 7.25%, 12/01/04 - 613
850 Wal-Mart Stores, Inc., 6.88%, 08/10/09 - 830
------
1,443
Telecommunications -- 3.4%
900 Sprint Capital Corp., 6.38%, 05/01/09 - 812
600 U.S. West Capital Funding, Inc., 6.25%, 07/15/05 - 562
800 Vodafone AirTouch PLC (United Kingdom), #, 7.63%,
02/15/05 - 801
------
2,175
Utilities -- 2.9%
650 Cilcorp Inc., 8.70%, 10/15/09 - 655
500 Israel Electric Corp. (Israel), MTN, #, 7.75%, 12/15/27 - 440
750 TXU Eastern Funding (United Kingdom), 6.15%,
05/15/02 - 729
------
1,824
------
------------------------------------------------------------------------
Total Corporate Notes & Bonds 16,831
(Cost $17,171)
------------------------------------------------------------------------
Mortgage Backed Securities -- 33.9%
-----------------------------------
Residential Mortgage Backed Pass-Through Securities -- 33.9%
Federal National Mortgage Association,
1,357 Pool 253033, 7.00%, 02/01/15 - 1,331
2,911 Pool 253036, 7.00%, 02/01/30 - 2,810
2,444 Pool 490445, 6.00%, 03/01/29 - 2,237
1,236 Pool 494272, 6.50%, 04/01/29 - 1,166
2,968 Pool 503599, 6.50%, 06/01/29 - 2,801
3,346 Pool 523193, 7.50%, 11/01/29 - 3,298
980 Pool 534064, 8.00%, 03/01/30 - 984
2,594 Pool 535054, 6.50%, 11/01/14 - 2,500
Government National Mortgage Association,
1,631 Pool 487224, 6.50%, 05/15/29 - 1,548
1,547 Pool 510285, 7.00%, 08/15/29 - 1,503
1,148 Pool 527141, 8.00%, 03/15/30 - 1,160
------------------------------------------------------------------------
Total Mortgage Backed Securities 21,338
(Cost $21,511)
------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
35
<PAGE>
CHASE INCOME FUND
Portfolio of Investments (Continued)
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
-------------------------------------------------------------------------------------
Long-Term Investments -- Continued
-------------------------------------------------------------------------------------
<S> <C> <C>
Asset Backed Securities -- 4.0%
-------------------------------
MBNA Master Credit Card Trust,
$ 900 Ser. 1999-J, Class A, 7.00%, 02/15/12 - $ 884
800 Ser. 1999-M, Class B, 6.80%, 04/16/07 - 783
850 Residential Funding Mortgage Securities II, Ser.
2000-HI1, Class AI4, 7.79%, 01/25/14 - 849
---------------------------------------------------------------------
Total Asset Backed Securities 2,516
(Cost $2,528)
-------------------------------------------------------------------------------------
Total Long-Term Investments 56,223
(Cost $56,550)
-------------------------------------------------------------------------------------
Short-Term Investment -- 13.6%
-------------------------------------------------------------------------------------
U.S. Government Agency Security -- 13.6%
----------------------------------------
8,585 Federal Home Loan Bank, DN, 6.57%, 07/03/00 - 8,582
(Cost $8,582)
-------------------------------------------------------------------------------------
Total Investments -- 102.8% $64,805
(Cost $65,132)
-------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
36
<PAGE>
--------------------------------------------------------------------------------
CHASE BALANCED FUND
Portfolio of Investments
--------------------------------------------------------------------------------
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
--------------------------------------------------------------------------------
Long-Term Investments -- 98.8%
--------------------------------------------------------------------------------
<S> <C> <C>
Common Stock -- 60.3%
---------------------
Advertising -- 0.3%
4 Omnicom Group $ 374
Airlines -- 0.6%
38 Southwest Airlines, Inc. 725
Automotive -- 0.5%
9 Ford Motor Co. 378
4 General Motors Corp. 209
1 Visteon Corp. * 14
-----
601
Banking -- 1.0%
9 Bank of America Corp. 378
15 Bank of New York Co., Inc. 693
-----
1,071
Biotechnology -- 0.7%
11 Amgen, Inc. * 776
Computer Networks -- 2.0%
35 Cisco Systems, Inc. * 2,247
Computer Software -- 3.5%
29 Microsoft Corp. * 2,294
15 Oracle Corp. * 1,261
7 Symantec Corp. * 375
-----
3,930
Computers/Computer Hardware -- 4.2%
18 Dell Computer Corp. * 901
17 EMC Corp. * 1,336
6 Hewlett-Packard Co. 712
8 International Business Machines Corp. 920
9 Sun Microsystems, Inc. * 818
-----
4,687
Consumer Products -- 1.7%
13 Avon Products, Inc. 561
15 Colgate-Palmolive Co. 868
9 Gillette Co. 314
12 Philip Morris Companies, Inc. 327
7 Procter & Gamble Co. 388
-----
2,458
Diversified -- 3.4%
59 General Electric Co. 3,144
15 Tyco International LTD (Bermuda) 692
-----
3,836
Electronics/Electrical Equipment -- 1.8%
2 Agilent Technologies, Inc. * 160
6 Molex, Inc. 289
8 Sanmina Corp. * 710
21 Solectron Corp. * 892
-----
2,051
Financial Services -- 5.2%
32 American Express Co. 1,678
26 Charles Schwab Corp. 881
26 Citigroup, Inc. 1,548
8 Merrill Lynch & Co., Inc. 937
12 Morgan Stanley Dean Witter & Co. 962
-----
6,006
</TABLE>
See notes to financial statements.
37
<PAGE>
CHASE BALANCED FUND
Portfolio of Investments (Continued)
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
--------------------------------------------------------------------------------
Long-Term Investments -- Continued
--------------------------------------------------------------------------------
<S> <C> <C>
Food/Beverage Products -- 2.1%
8 Anheuser-Busch Companies, Inc. $ 616
13 Coca-Cola Co. 765
23 PepsiCo, Inc. 1,021
-----
2,402
Health Care/Health Care Services -- 1.3%
12 Guidant Corp. * 603
17 Medtronic, Inc. 829
-----
1,432
Insurance -- 1.9%
18 American International Group, Inc. 2,087
Internet Services/Software -- 0.9%
12 America Online, Inc. * 633
3 Yahoo! Inc. * 341
-----
974
Machinery & Engineering Equipment -- 0.3%
7 Dover Corp. 284
Metals/Mining -- 0.5%
18 Alcoa, Inc. 522
Multi-Media -- 1.6%
24 The Walt Disney Co. 943
11 Time Warner, Inc. 832
-----
1,775
Oil & Gas -- 3.5%
8 BJ Services Co. * 488
6 Chevron Corp. 466
27 Exxon Mobil Corp. 2,104
14 Royal Dutch Petroleum Co., N.Y. Registered Shares
(Netherlands) 837
-----
3,895
Pharmaceuticals -- 4.7%
7 American Home Products Corp. 423
11 Bristol-Myers Squibb Co. 641
6 Eli Lilly & Co. 639
7 Johnson & Johnson 690
12 Merck & Co., Inc. 950
41 Pfizer, Inc. 1,986
-----
5,329
Retailing -- 5.2%
9 Albertson's, Inc. 303
12 Best Buy Co., Inc. * 787
16 Home Depot, Inc. 820
9 Target Corp. 539
36 Wal-Mart Stores, Inc. 2,053
26 Walgreen Co. 824
-----
5,326
Semi-Conductors -- 4.9%
11 Altera Corp. * 1,121
11 Applied Materials, Inc. * 1,029
19 Intel Corp. 2,513
13 Texas Instruments, Inc. 879
-----
5,542
</TABLE>
See notes to financial statements.
38
<PAGE>
CHASE BALANCED FUND
Portfolio of Investments (Continued)
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
--------------------------------------------------------------------------------
Long-Term Investments -- Continued
--------------------------------------------------------------------------------
<S> <C> <C>
Telecommunications -- 3.5%
9 AT&T Corp. $ 289
14 BellSouth Corp. 584
8 GTE Corp. 524
19 SBC Communications, Inc. 830
12 Sprint Corp. (FON Group) 588
23 WorldCom, Inc. * 1,069
------
3,884
Telecommunications Equipment -- 3.3%
17 ADC Telecommunications, Inc. * 1,384
3 JDS Uniphase Corp. * 336
14 Lucent Technologies, Inc. 849
17 Nortel Networks Corp. (Canada) 1,126
------
3,695
Utilities -- 1.7%
13 AES Corp. * 584
6 Duke Energy Corp. 316
16 Enron Corp. 1,032
------
1,932
------
Total Common Stock 67,841
(Cost $52,997)
-------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
<S> <C> <C>
U.S. Treasury Securities -- 6.1%
--------------------------------
U.S. Treasury Notes & Bonds,
$2,250 6.00%, 08/15/09 2,232
3,925 6.25%, 08/15/23 3,957
625 6.50%, 11/15/26 653
------------------------------------------------------------------
Total U.S. Treasury Securities 6,842
(Cost $6,760)
------------------------------------------------------------------
U.S. Government Agency Securities -- 2.2%
-----------------------------------------
1,000 Federal Home Loan Bank, 4.88%, 01/22/02 970
Tennessee Valley Authority,
1,100 5.38%, 11/13/08 977
600 6.75%, 11/01/25 580
------------------------------------------------------------------
Total U.S. Government Agency Securities 2,527
(Cost $2,558)
------------------------------------------------------------------
Corporate Notes & Bonds -- 17.6%
--------------------------------
Aerospace -- 1.0%
1,000 United Technologies Corp., 8.75%, 03/01/21 1,107
Automotive -- 1.4%
1,425 DaimlerChrysler North America Holdings Corp., MTN,
6.63%, 09/21/01 1,412
225 Ford Motor Credit Co., 6.25%, 12/08/05 211
-----
1,623
Banking -- 2.0%
1,950 Bank One Corp., 6.40%, 08/01/02 1,910
400 BankAmerica Corp., 6.20%, 02/15/06 371
-----
2,281
</TABLE>
See notes to financial statements.
39
<PAGE>
CHASE BALANCED FUND
Portfolio of Investments (Continued)
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
-------------------------------------------------------------------------------------
Long-Term Investments -- Continued
-------------------------------------------------------------------------------------
<S> <C> <C>
Biotechnology -- 0.9%
$1,100 Monsanto Co., #, 5.88%, 12/01/08 $ 1,000
Computers/Computer Hardware -- 1.3%
1,425 IBM Credit Corp., MTN, 6.35%, 08/30/01 1,411
Consumer Products -- 0.3%
325 Procter & Gamble Co., 6.45%, 01/15/26 283
Financial Services -- 3.7%
20 American General Finance Corp., MTN, 6.04%, 07/02/01 20
1,625 Household Finance Corp., 5.88%, 09/25/04 1,515
1,265 International Lease Finance Corp., MTN, 8.35%, 02/04/02 1,289
1,330 Merrill Lynch & Co., Inc., Ser. B, MTN, 5.71%, 01/15/02 1,298
-------
4,122
Food/Beverage Products -- 0.4%
500 Anheuser-Busch Companies, Inc., 6.75%, 08/01/03 492
Machinery & Engineering Equipment -- 1.2%
1,425 Caterpillar Financial Services Corp., MTN, 5.89%,
06/17/02 1,386
Oil & Gas -- 1.9%
2,200 BP Amoco PLC (United Kingdom), 6.50%, 08/01/07 2,113
Pharmaceuticals -- 0.5%
600 Abbott Laboratories, 5.60%, 10/01/03 574
Restaurants/Food Services -- 0.4%
450 McDonald's Corp., 7.05%, 11/15/25 420
Retailing -- 1.5%
1,775 Wal-Mart Stores, Inc., 6.55%, 08/10/04 1,742
Utilities -- 1.1%
1,300 Baltimore Gas & Electric Co., Ser. D, MTN, 6.90%,
02/01/05 1,276
-----------------------------------------------------------------------
Total Corporate Notes & Bonds 19,830
(Cost $20,243)
-----------------------------------------------------------------------
Mortgage Backed Securities -- 12.6%
-----------------------------------
Residential Mortgage Backed Pass-Through Securities -- 12.6%
Federal Home Loan Mortgage Corp.,
999 Gold Pool C00970, 7.00%, 04/01/30 966
1,721 Gold Pool C35363, 7.00%, 01/01/30 1,663
1,150 Gold Pool E00532, 6.50%, 02/01/13 1,112
3,427 Federal National Mortgage Association, Pool 526926,
6.50%, 12/01/14 3,303
Government National Mortgage Association,
1,367 Pool 423130, 8.50%, 10/15/29 1,399
2,575 Pool 487057, 6.50%, 03/15/29 2,444
1,369 Pool 503849, 6.50%, 04/15/29 1,299
1,092 Pool 505680, 6.50%, 06/15/29 1,036
990 Pool 510100, 7.00%, 07/15/29 962
-----------------------------------------------------------------------
Total Mortgage Backed Securities 14,184
(Cost $14,181)
-------------------------------------------------------------------------------------
Total Long-Term Investments 111,224
(Cost $96,739)
-------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
40
<PAGE>
CHASE BALANCED FUND
Portfolio of Investments (Continued)
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
-------------------------------------------------------------------------------------
Short-Term Investment -- 1.8%
-------------------------------------------------------------------------------------
<S> <C> <C>
Repurchase Agreement -- 1.8%
----------------------------
$ 2,003 Greenwich Capital Markets, Inc., in a joint trading
account at 6.80%, due 07/03/00, (Dated 06/30/00,
Proceeds $2,004, Secured by FHLMC, $2,080, 7.00%,
due 11/15/21; Market Value $2,043) $ 2,003
(Cost $2,003)
-------------------------------------------------------------------------------------
Total Investments -- 100.6% $113,227
(Cost $98,742)
-------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
41
<PAGE>
--------------------------------------------------------------------------------
CHASE EQUITY INCOME FUND
Portfolio of Investments
--------------------------------------------------------------------------------
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
--------------------------------------------------------------------------------
Long-Term Investments -- 93.9%
--------------------------------------------------------------------------------
<S> <C> <C>
Common Stock -- 93.9%
Automotive -- 1.5%
30 Ford Motor Co. $1,277
20 General Motors Corp. 1,138
4 Visteon Corp. * 47
------
2,462
Banking -- 2.1%
75 Bank of New York Co., Inc. 3,469
Chemicals -- 1.6%
43 Dow Chemical Co. 1,289
32 E.I. DuPont de Nemours Co. 1,383
------
2,672
Computer Networks -- 2.0%
53 Cisco Systems, Inc. * 3,388
Computer Software -- 7.1%
33 Computer Associates International, Inc. 1,705
61 Microsoft Corp. * 4,856
63 Oracle Corp. * 5,295
------
11,856
Computers/Computer Hardware -- 5.5%
23 Hewlett-Packard Co. 2,810
58 International Business Machines Corp. 6,387
------
9,197
Consumer Products -- 2.2%
29 Gillette Co. 1,006
24 Philip Morris Companies, Inc. 643
37 Procter & Gamble Co. 2,095
------
3,744
Diversified -- 4.2%
133 General Electric Co. 7,047
Financial Services -- 10.2%
65 American Express Co. 3,404
87 Citigroup, Inc. 5,266
13 J.P. Morgan & Co. 1,454
22 Merrill Lynch & Co., Inc. 2,519
53 Morgan Stanley Dean Witter & Co. 4,379
------
17,022
Food/Beverage Products -- 5.4%
27 Anheuser-Busch Companies, Inc. 2,002
32 Coca-Cola Co. 1,827
30 PepsiCo, Inc. 1,333
92 Sysco Corp. 3,858
------
9,020
Insurance -- 3.3%
46 American International Group, Inc. 5,462
Machinery & Engineering Equipment -- 1.4%
59 Dover Corp. 2,393
Manufacturing -- 0.4%
21 Honeywell International, Inc. 691
Multi-Media -- 0.7%
29 The Walt Disney Co. 1,141
</TABLE>
See notes to financial statements.
42
<PAGE>
CHASE EQUITY INCOME FUND
Portfolio of Investments (Continued)
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
--------------------------------------------------------------------------------
Long-Term Investments -- Continued
--------------------------------------------------------------------------------
<S> <C> <C>
Oil & Gas -- 6.0%
28 BP Amoco PLC, ADR (United Kingdom) $ 1,587
26 Chevron Corp. 2,214
39 Exxon Mobil Corp. 3,026
43 Royal Dutch Petroleum Co., N.Y. Registered Shares
(Netherlands) 2,639
8 Schlumberger LTD 575
-------
10,041
Paper/Forest Products -- 0.4%
21 International Paper Co. 629
Pharmaceuticals -- 13.7%
54 Abbott Laboratories 2,397
39 American Home Products Corp. 2,274
48 Bristol-Myers Squibb Co. 2,808
41 Eli Lilly & Co. 4,125
19 Johnson & Johnson 1,915
31 Merck & Co., Inc. 2,406
98 Pfizer, Inc. 4,689
48 Pharmacia Corp. 2,455
-------
23,069
Retailing -- 3.5%
18 Costco Wholesale Corp. * 587
35 Home Depot, Inc. 1,753
62 Wal-Mart Stores, Inc. 3,590
-------
5,930
Semi-Conductors -- 7.9%
57 Intel Corp. 7,607
81 Texas Instruments, Inc. 5,536
-------
13,143
Telecommunications -- 6.6%
44 AT&T Corp. 1,384
28 Bell Atlantic Corp. * 1,428
40 BellSouth Corp. 1,701
23 GTE Corp. 1,450
76 SBC Communications, Inc. 3,292
37 WorldCom, Inc. * 1,716
-------
10,971
Telecommunications Equipment -- 3.7%
68 Lucent Technologies, Inc. 4,049
72 Motorola, Inc. 2,104
-------
6,153
Utilities -- 4.5%
51 DQE, Inc. 2,026
32 Duke Energy Corp. 1,827
58 Enron Corp. 3,760
-------
7,613
--------------------------------------------------------------------------------
Total Long-Term Investments 157,113
(Cost $98,874)
--------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
43
<PAGE>
CHASE EQUITY INCOME FUND
Portfolio of Investments (Continued)
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
------------------------------------------------------------------------------------
Short-Term Investment -- 8.4%
------------------------------------------------------------------------------------
<S> <C> <C>
Repurchase Agreement -- 8.4%
----------------------------
$14,006 Greenwich Capital Markets, Inc., in a joint trading
account at 6.80%, 07/03/00, (Dated 06/30/00, Proceeds
$14,014, Secured by FHLMC, $14,329, 6.50% through
8.00%, due 07/25/21 through 04/25/30; Market Value
$ 14,286) $ 14,006
(Cost $14,006)
------------------------------------------------------------------------------------
Total Investments -- 102.3% $171,119
(Cost $112,880)
------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
44
<PAGE>
--------------------------------------------------------------------------------
CHASE SMALL CAPITALIZATION FUND
Portfolio of Investments
--------------------------------------------------------------------------------
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
--------------------------------------------------------------------------------
Long-Term Investments -- 97.0%
--------------------------------------------------------------------------------
<S> <C> <C>
Common Stock -- 97.0%
---------------------
Advertising -- 2.6%
17 Catalina Marketing Corp. * $1,764
26 True North Communications Inc. 1,162
------
2,926
Aerospace -- 0.4%
37 AAR Corp. 442
Apparel -- 1.2%
22 Kenneth Cole Productions, Inc., Class A * 878
7 Timberland Co., Class A * 506
------
1,384
Automotive -- 1.7%
59 Copart, Inc. * 948
40 Lithia Motors, Inc., Class A * 528
35 Tower Automotive, Inc. * 438
------
1,914
Banking -- 4.4%
18 Amcore Financial, Inc. 330
35 City National Corp. 1,239
21 Commerce Bancorp., Inc. 947
33 Cullen/Frost Bankers, Inc. 876
31 Investors Financial Services Corp. 1,230
20 Trustmark Corp. 345
------
4,967
Biotechnology -- 1.1%
12 Inhale Therapeutic Systems, Inc. * 1,238
Broadcasting/Cable -- 1.4%
48 Westwood One, Inc. * 1,623
Business Services -- 6.3%
26 ChoicePoint, Inc. * 1,144
17 CSG Systems International, Inc. * 975
17 F.Y.I., Inc. * 583
42 Iron Mountain, Inc. * 1,437
14 Learning Tree International, Inc. * 867
32 On Assignment, Inc. * 970
70 Profit Recovery Group International * 1,164
------
7,140
Chemicals -- 1.3%
56 Spartech Corp. 1,524
Computer Networks -- 1.9%
28 Black Box Corp. * 2,181
Computer Software -- 6.5%
17 Accrue Software, Inc. * 586
23 Advent Software, Inc. * 1,477
20 Allaire Corp. * 748
13 FileNET Corp. * 247
34 National Computer Systems, Inc. 1,693
25 Remedy Corp. * 1,394
18 RSA Security, Inc. * 1,233
------
7,378
Computers/Computer Hardware -- 1.4%
38 Cybex Computer Products Corp. * 1,648
</TABLE>
See notes to financial statements.
45
<PAGE>
CHASE SMALL CAPITALIZATION FUND
Portfolio of Investments (Continued)
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
--------------------------------------------------------------------------------
Long-Term Investments -- Continued
--------------------------------------------------------------------------------
<S> <C> <C>
Construction -- 0.9%
22 Dycom Industries Inc. * $1,007
Construction Materials -- 0.6%
79 Dal-Tile International Inc. * 648
Electronics/Electrical Equipment -- 13.8%
22 Amphenol Corp., Class A * 1,430
47 Artesyn Technologies, Inc. * 1,303
10 Coherent, Inc. * 797
37 CTS Corp. 1,679
25 Littelfuse, Inc. * 1,247
15 National Instruments Corp. * 641
29 PerkinElmer, Inc. 1,937
42 Sanmina Corp. * 3,603
14 Technitrol, Inc. 1,395
47 Vishay Intertechnology, Inc. * 1,773
------
15,805
Engineering Services -- 0.4%
14 Jacobs Engineering Group, Inc. * 469
Entertainment/Leisure -- 1.9%
4 Cinar Corp., Class B (Canada) * 12
9 Macrovision Corp. * 588
61 Station Casinos, Inc. * 1,517
------
2,117
Financial Services -- 1.0%
14 Federated Investors, Inc., Class B 498
15 SEI Investments Co. 609
------
1,107
Food/Beverage Products -- 0.6%
23 Performance Food Group Co. * 723
Health Care/Health Care Services -- 13.0%
59 Community Health Systems, Inc. * 947
37 Cooper Companies, Inc. 1,342
30 Datascope Corp. 1,062
77 Hooper Holmes, Inc. 616
24 MedQuist, Inc. * 826
37 Mentor Corp. 994
44 Molecular Devices Corp. * 3,062
37 Oxford Health Plans, Inc. * 881
15 Patterson Dental Co. * 768
55 Province Healthcare Co. * 1,987
5 Syncor International Corp. * 335
29 Varian Medical Systems, Inc. 1,125
40 Ventana Medical Systems, Inc. * 928
------
14,873
Insurance -- 2.7%
19 Arthur J. Gallagher & Co. 802
15 Brown & Brown, Inc. 801
26 Delphi Financial Group, Inc., Class A * 887
11 Radian Group, Inc. 569
------
3,059
Machinery & Engineering Equipment -- 3.1%
22 Cognex Corp. * 1,149
23 PRI Automation, Inc. * 1,520
19 Zebra Technologies Corp., Class A * 824
------
3,493
</TABLE>
See notes to financial statements.
46
<PAGE>
CHASE SMALL CAPITALIZATION FUND
Portfolio of Investments (Continued)
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
--------------------------------------------------------------------------------
Long-Term Investments -- Continued
--------------------------------------------------------------------------------
<S> <C> <C>
Oil & Gas -- 5.2%
37 Louis Dreyfus Natural Gas * $ 1,168
61 Pride International, Inc. * 1,498
3 St. Mary Land & Exploration Co. 145
27 Triton Energy LTD (Cayman Islands) 1,075
45 Veritas DGC, Inc. * 1,166
38 Vintage Petroleum, Inc. 849
-------
5,901
Pharmaceuticals -- 3.3%
30 Advance Paradigm, Inc. * 611
12 IDEC Pharmaceuticals Corp. * 1,349
1 K-V Pharmaceutical Co.* 30
40 King Pharmaceuticals, Inc. * 1,771
-------
3,761
Real Estate Investment Trust -- 1.2%
39 Alexandria Real Estate Equities 1,331
Restaurants/Food Services -- 1.4%
63 Jack in the Box, Inc. * 1,553
Retailing -- 4.4%
58 BJ's Wholesale Club, Inc. * 1,901
27 Chico's FAS, Inc. * 540
26 Michaels Stores, Inc. * 1,203
62 Stein Mart, Inc. * 640
60 Wild Oats Markets, Inc. * 755
-------
5,039
Semi-Conductors -- 7.9%
58 Actel Corp. * 2,629
15 Cree, Inc. * 1,989
17 Dallas Semiconductor Corp. 685
20 Semtech Corp. * 1,491
50 Varian, Inc. * 2,292
-------
9,086
Shipping/Transportation -- 1.2%
26 C.H. Robinson Worldwide, Inc. 1,309
Telecommunications -- 1.9%
34 ITC-DeltaCom, Inc. * 750
58 Price Communications Corp. * 1,355
-------
2,105
Telecommunications Equipment -- 0.7%
14 Inet Technologies, Inc. * 743
Utilities -- 1.6%
19 AGL Resources, Inc. 295
23 American States Water Co. 679
17 Laclede Gas Co. 321
17 Northwest Natural Gas Co. 373
5 United Water Resources, Inc. 176
-------
1,844
--------------------------------------------------------------------------------
Total Long-Term Investments 110,338
(Cost $84,215)
--------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
47
<PAGE>
CHASE SMALL CAPITALIZATION FUND
Portfolio of Investments (Continued)
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
--------------------------------------------------------------------------------------
Short-Term Investment -- 3.0%
--------------------------------------------------------------------------------------
<S> <C> <C>
Repurchase Agreement -- 3.0%
----------------------------
$3,369 Greenwich Capital Markets, Inc., in a joint trading
account at 6.80%, due 07/03/00, (Dated 06/30/00,
Proceeds $3,371, Secured by FHLMC, $3,666, 6.00%,
due 03/18/28; Market Value $3,437) $ 3,369
(Cost $3,369)
--------------------------------------------------------------------------------------
Total Investments -- 100.0% $113,707
(Cost $87,584)
--------------------------------------------------------------------------------------
</TABLE>
INDEX:
* -- Non-income producing security.
~ -- All or a portion of this security is segregated for delayed delivery
securities.
# -- Security may only be sold to qualified institutional buyers.
ADR -- American Depositary Receipt.
DN -- Discount Note: The rate shown is the effective yield at the date of
purchase.
FHLMC -- Federal Home Loan Mortgage Corporation.
FRDO -- Floating Rate Demand Obligation: The maturity date shown is the next
interest rate reset date; the rate shown is the rate in effect at
June 30, 2000.
FRN -- Floating Rate Note: The maturity date shown is the actual maturity
date; the rate shown is the rate in effect at June 30, 2000.
MTN -- Medium Term Note.
SUB -- Step-Up Bond: The maturity date shown is the call date; the rate shown
is the rate in effect at June 30, 2000.
See notes to financial statements.
48
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES As of June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
(Amounts in Thousands, Except Per Share Amounts)
<TABLE>
<CAPTION>
Short-
Intermediate
Term U.S. U.S.
Money Government Intermediate Government
Market Securities Term Bond Securities
Fund Fund Fund Fund
===================================================================================================
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at
value (Note 1) .................... $325,155 $30,642 $48,566 $6,175
Cash .............................. 67 2 4 --
Receivables:
Interest/Dividends ............... 2,565 467 537 72
Fund shares sold ................. -- -- 149 --
Expense reimbursement
from Distributor ................. 2 2 2 22
--------------------------------------------------------------------------------------------------
Total Assets ................... 327,789 31,113 49,258 6,269
--------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Fund shares redeemed ............. 1 946 174 --
Dividends ........................ 544 5 17 --
Accrued liabilities: (Note 2)
Investment advisory fees ......... 66 3 10 --
Administration fees .............. 39 4 6 --
Custody and accounting
fees ............................. 9 12 17 4
Other ............................ 124 21 74 19
--------------------------------------------------------------------------------------------------
Total Liabilities .............. 783 991 298 23
--------------------------------------------------------------------------------------------------
NET ASSETS:
Paid in capital ................... 327,006 30,821 50,674 6,617
Accumulated undistributed/
(distributions in excess of)
net investment income ............. 2 1 (2) (1)
Accumulated net realized
loss on investments ............... (2) (510) (1,376) (403)
Net unrealized appreciation
(depreciation) of investments -- (190) (336) 33
--------------------------------------------------------------------------------------------------
Total Net Assets ............... $327,006 $30,122 $48,960 $6,246
==================================================================================================
Shares of beneficial interest
outstanding ($.001 par value;
unlimited number of shares
authorized)
Premier Shares .................... 326,749 2,491 3,948 479
Investor Shares ................... 257 10 101 3
Net Asset Value, maximum
offering and redemption
price per share
Premier Shares $ 1.00 $ 12.04 $ 12.09 $12.98
Investor Shares ................... $ 1.00 $ 12.04 $ 12.09 $12.98
Cost of Investments ................ $325,155 $30,832 $48,902 $6,142
==================================================================================================
</TABLE>
See notes to financial statements.
49
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES As of June 30, 2000 (unaudited)
(Amounts in Thousands, Except Per Share Amounts)
<TABLE>
<CAPTION>
Equity Small
Income Balanced Income Capitalization
Fund Fund Fund Fund
===============================================================================================
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at
value (Note 1) ........................ $64,805 $113,227 $171,119 $113,707
Cash .................................. 5 5 -- 1
Receivables:
Investment securities sold ........... -- -- -- 106
Interest and Dividends ............... 700 673 119 42
Fund shares sold ..................... 129 6 22 341
Expense reimbursement
from Distributor ..................... 1 1 1 1
----------------------------------------------------------------------------------------------
Total Assets ....................... 65,640 113,912 171,261 114,198
----------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities
purchased ............................ 2,001 1,109 -- --
Fund shares redeemed ................. 499 59 3,669 293
Dividends ............................ 23 -- 10 --
Accrued liabilities: (Note 2)
Investment advisory fees ............. 16 65 102 62
Administration fees .................. 8 14 21 14
Custody and accounting fees .......... 7 19 20 15
Other ................................ 50 105 116 121
----------------------------------------------------------------------------------------------
Total Liabilities .................. 2,604 1,371 3,938 505
----------------------------------------------------------------------------------------------
NET ASSETS:
Paid in capital ....................... 66,852 87,950 103,610 86,550
Accumulated undistributed/
(distributions in excess of)
net investment income ................. 25 1 -- (90)
Accumulated net realized gain
(loss) on investments ................. (3,514) 10,105 5,474 1,110
Net unrealized appreciation
(depreciation) of investments ......... (327) 14,485 58,239 26,123
----------------------------------------------------------------------------------------------
Total Net Assets ................... $63,036 $112,541 $167,323 $113,693
==============================================================================================
Shares of beneficial interest
outstanding ($.001 par value;
unlimited number of shares
authorized)
Premier Shares ........................ 3,324 2,833 3,210 4,350
Investor Shares ....................... 56 49 112 149
Net Asset Value, maximum
offering and redemption
price per share
Premier Shares ........................ $ 18.65 $ 39.06 $ 50.38 $ 25.28
Investor Shares ....................... $ 18.67 $ 39.02 $ 50.41 $ 25.14
Cost of Investments .................... $65,132 $ 98,742 $112,880 $ 87,584
</TABLE>
See notes to financial statements.
50
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES As of June 30, 2000 (unaudited)
(Amounts in Thousands, Except Per Share Amounts)
<TABLE>
<CAPTION>
Equity
Core Equity Growth
Fund Fund
====================================================================================
<S> <C> <C>
ASSETS:
Investment in Portfolio, at
value (Note 1) ....................................... $201,617 $396,825
Receivables:
Fund shares sold .................................... 71 118
------------------------------------------------------------------------------------
Total Assets ...................................... 201,688 396,943
------------------------------------------------------------------------------------
LIABILITIES:
Accrued liabilities: (Note 2)
Administration fees ................................. 16 32
Other ............................................... 100 125
------------------------------------------------------------------------------------
Total Liabilities ................................. 116 157
------------------------------------------------------------------------------------
NET ASSETS:
Paid in capital ...................................... 138,271 249,260
Accumulated distributions in excess of
net investment income ................................ (59) (722)
Accumulated net realized gain on investments ......... 5,681 5,521
Net unrealized appreciation
of investments ....................................... 57,679 142,727
------------------------------------------------------------------------------------
Total Net Assets .................................. $201,572 $396,786
====================================================================================
Shares of beneficial interest
outstanding ($.001 par value;
unlimited number of shares
authorized)
Premier Shares ....................................... 5,922 5,259
Investor Shares ...................................... 273 461
Net Asset Value, maximum
offering and redemption
price per share
Premier Shares ....................................... $ 32.54 $ 69.39
Investor Shares ...................................... $ 32.45 $ 69.05
====================================================================================
</TABLE>
See notes to financial statements.
51
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the six months ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
(Amounts in Thousands)
<TABLE>
<CAPTION>
Short-
Intermediate
Term U.S. U.S.
Money Government Intermediate Government
Market Securities Term Bond Securities
Fund Fund Fund Fund
================================================================================================
<S> <C> <C> <C> <C>
INTEREST INCOME ..................... $9,338 $976 $1,432 $223
------------------------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees ........... 449 76 106 15
Administration fees ................ 224 23 32 5
Distribution fees .................. -- -- 1 --
Custody and accounting
fees ............................... 38 24 24 27
Printing and postage ............... 29 12 11 1
Professional fees .................. 22 18 19 16
Registration expenses .............. 28 4 9 4
Transfer agent fees ................ 40 20 24 16
Trustees' fees ..................... 7 1 1 --
Other .............................. 7 6 1 2
------------------------------------------------------------------------------------------------
Total expenses .................. 844 184 228 86
------------------------------------------------------------------------------------------------
Less amounts waived
(Note 2D) .......................... 85 61 57 20
Less earnings credits
(Note 2E) .......................... 1 -- 1 --
Less expense
reimbursements (Note 2E) ........... 10 9 10 41
------------------------------------------------------------------------------------------------
Net expenses ..................... 748 114 160 25
------------------------------------------------------------------------------------------------
Net investment
income .......................... 8,590 862 1,272 198
------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized loss on
investment transactions ............ -- (326) (506) (70)
Change in net unrealized
appreciation/depreciation
of investments ..................... -- 307 626 129
------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments ......... -- (19) 120 59
------------------------------------------------------------------------------------------------
Net increase in net assets
from operations .................... $8,590 $843 $1,392 $257
================================================================================================
</TABLE>
See notes to financial statements.
52
<PAGE>
STATEMENT OF OPERATIONS For the six months ended June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Equity Small
Income Balanced Income Capitalization
Fund Fund Fund Fund
================================================================================================
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ................................ $2,224 $1,522 $ 359 $ 213
Dividend ................................ -- 219 965 216
------------------------------------------------------------------------------------------------
Total investment income .............. 2,224 1,741 1,324 429
------------------------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees ................ 160 407 638 388
Administration fees ..................... 48 81 128 78
Distribution fees ....................... 1 2 6 3
Custody and accounting fees ............. 33 37 34 36
Printing and postage .................... 17 14 31 18
Professional fees ....................... 18 17 19 19
Registration expenses ................... 9 19 14 19
Transfer agent fees ..................... 27 35 45 36
Trustees' fees .......................... 1 2 4 2
Other ................................... 1 -- 8 2
------------------------------------------------------------------------------------------------
Total expenses ....................... 315 614 927 601
------------------------------------------------------------------------------------------------
Less amounts waived (Note 2D) ........... 65 52 47 68
Less earnings credits (Note 2E) ......... -- 3 -- --
Less expense reimbursements
(Note 2E) ............................... 10 14 22 14
------------------------------------------------------------------------------------------------
Net expenses ........................... 240 545 858 519
------------------------------------------------------------------------------------------------
Net investment income
(loss) ............................... 1,984 1,196 466 (90)
------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on
investment transactions ................. (885) 10,547 5,980 9,767
Change in net unrealized
appreciation/depreciation
of investments .......................... 638 (8,767) (4,235) 2,186
------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments ................... (247) 1,780 1,745 11,953
------------------------------------------------------------------------------------------------
Net increase in net
assets from operations .................. $1,737 $2,976 $2,211 $11,863
================================================================================================
</TABLE>
See notes to financial statements.
53
<PAGE>
STATEMENT OF OPERATIONS For the six months ended June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Equity
Core Equity Growth
Fund Fund
==================================================================================
<S> <C> <C>
INVESTMENT INCOME:
Investment income from Portfolio ................. $ 903 $ 1,133
Expenses from Portfolio .......................... (772) (1,498)
----------------------------------------------------------------------------------
Total investment income (loss) ................ 131 (365)
----------------------------------------------------------------------------------
EXPENSES: (Note 2)
Administration fees .............................. 95 183
Distribution fees ................................ 9 29
Custody and accounting fees ...................... 14 20
Printing and postage ............................. 24 43
Professional fees ................................ 10 13
Registration expenses ............................ 14 21
Transfer agent fees .............................. 52 99
Trustees' fees ................................... 2 4
Other ............................................ 1 7
----------------------------------------------------------------------------------
Total expenses ................................ 221 419
----------------------------------------------------------------------------------
Less amounts waived (Note 2D) .................... 9 29
Less expense reimbursements (Note 2E) ............ 22 33
----------------------------------------------------------------------------------
Net expenses .................................... 190 357
----------------------------------------------------------------------------------
Net investment loss ........................... (59) (722)
----------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain on
investment transactions .......................... 3,454 6,398
Change in net unrealized
appreciation/depreciation of investments ......... (711) 1,539
----------------------------------------------------------------------------------
Net realized and unrealized gain
on investments ................................... 2,743 7,937
----------------------------------------------------------------------------------
Net increase in net assets from
operations ....................................... $2,684 $ 7,215
==================================================================================
</TABLE>
See notes to financial statements.
54
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated (unaudited)
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated
(Amounts in Thousands)
<TABLE>
<CAPTION>
Short-Intermediate
Term
U.S. Government Intermediate
Money Market Fund Securities Fund Term Bond Fund
----------------------- --------------------- ---------------------
01/01/00 Year 01/01/00 Year 01/01/00 Year
Through Ended Through Ended Through Ended
06/30/00 12/31/99 06/30/00 12/31/99 06/30/00 12/31/99
==================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income ................................ $ 8,590 $ 11,119 $ 862 $ 1,538 $ 1,272 $ 1,963
Net realized loss on investment
transactions ......................................... -- (1) (326) (174) (506) (865)
Change in net unrealized appreciation/
depreciation of investments .......................... -- -- 307 (1,131) 626 (1,474)
----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations ......................................... 8,590 11,118 843 233 1,392 (376)
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................................ (8,591) (11,116) (863) (1,538) (1,277) (1,963)
Net realized gain on investment transactions ......... -- -- -- (115) -- (30)
----------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ................ (8,591) (11,116) (863) (1,653) (1,277) (1,993)
----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from capital share
transactions (Note 6) ................................. 30,727 100,785 (1,686) 2,684 8,950 9,384
----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ............ 30,726 100,787 (1,706) 1,264 9,065 7,015
NET ASSETS:
Beginning of period .................................. 296,280 195,493 31,828 30,564 39,895 32,880
----------------------------------------------------------------------------------------------------------------------------------
End of period ........................................ $327,006 $296,280 $30,122 $31,828 $48,960 $39,895
==================================================================================================================================
</TABLE>
See notes to financial statements.
55
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated (unaudited)
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated
(Amounts in Thousands)
<TABLE>
<CAPTION>
U.S. Government
Securities Fund Income Fund
---------------------- ---------------------
01/01/00 Year 01/01/00 Year
Through Ended Through Ended
06/30/00 12/31/99 06/30/00 12/31/99
==================================================================================================
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income ........................... $ 198 $ 319 $ 1,984 $ 3,468
Net realized gain (loss) on investment
transactions .................................... (70) (333) (885) (2,604)
Change in net unrealized appreciation/
depreciation of investments ..................... 129 (128) 638 (2,648)
-------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations .................................... 257 (142) 1,737 (1,784)
-------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ........................... (199) (319) (1,981) (3,468)
Net realized gain on investment transactions..... -- -- -- (584)
-------------------------------------------------------------------------------------------------
Total distributions to shareholders ........... (199) (319) (1,981) (4,052)
-------------------------------------------------------------------------------------------------
Increase (decrease) from capital
share transactions (Note 6) ...................... (1,551) 4,566 (2,773) 11,811
-------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ....... (1,493) 4,105 (3,017) 5,975
NET ASSETS:
Beginning of period ............................. 7,739 3,634 66,053 60,078
-------------------------------------------------------------------------------------------------
End of period ................................... $ 6,246 $7,739 $63,036 $66,053
==================================================================================================
<CAPTION>
Equity
Balanced Fund Income Fund
------------------------- -------------------------
01/01/00 Year 01/01/00 Year
Through Ended Through Ended
06/30/00 12/31/99 06/30/00 12/31/99
========================================================================================================
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income ........................... $ 1,196 $ 1,856 $ 466 $ 988
Net realized gain (loss) on investment
transactions .................................... 10,547 (61) 5,980 6,287
Change in net unrealized appreciation/
depreciation of investments ..................... (8,767) 10,256 (4,235) 10,874
--------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations .................................... 2,976 12,051 2,211 18,149
--------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ........................... (1,344) (1,710) (466) (978)
Net realized gain on investment transactions..... -- (521) -- (6,799)
--------------------------------------------------------------------------------------------------------
Total distributions to shareholders ........... (1,344) (2,231) (466) (7,777)
--------------------------------------------------------------------------------------------------------
Increase (decrease) from capital
share transactions (Note 6) ...................... 5,963 36,093 (8,225) 35,513
--------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ....... 7,595 45,913 (6,480) 45,885
NET ASSETS:
Beginning of period ............................. 104,946 59,033 173,803 127,918
--------------------------------------------------------------------------------------------------------
End of period ................................... $112,541 $104,946 $167,323 $173,803
========================================================================================================
</TABLE>
See notes to financial statements.
56
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated (unaudited)
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated
(Amounts in Thousands)
<TABLE>
<CAPTION>
Small Core
Capitalization Fund Equity Fund
----------------------- -------------------------
01/01/00 Year 01/01/00 Year
Through Ended Through Ended
06/30/00 12/31/99 06/30/00 12/31/99
===============================================================================================================
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ............................. $ (90) $ (95) $ (59) $ 192
Net realized gain (loss) on investment
transactions ............................................. 9,767 (6,607) 3,454 5,082
Change in net unrealized appreciation/
depreciation of investments .............................. 2,186 17,986 (711) 26,635
---------------------------------------------------------------------------------------------------------------
Increase in net assets from
operations ............................................... 11,863 11,284 2,684 31,909
---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1)
Net investment income .................................... -- -- -- (192)
Net realized gain on investment transactions ............. -- -- -- (3,154)
---------------------------------------------------------------------------------------------------------------
Total distributions to shareholders .................... -- -- -- (3,346)
---------------------------------------------------------------------------------------------------------------
Increase from capital share transactions (Note 6) ......... 8,085 17,669 11,999 69,766
---------------------------------------------------------------------------------------------------------------
Total increase in net assets ........................... 19,948 28,953 14,683 98,329
NET ASSETS:
Beginning of period ...................................... 93,745 64,792 186,889 88,560
---------------------------------------------------------------------------------------------------------------
End of period ............................................ $113,693 $93,745 $201,572 $186,889
===============================================================================================================
<CAPTION>
Equity
Growth Fund
------------------------
01/01/00 Year
Through Ended
06/30/00 12/31/99
========================================================================================
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ............................. $ (722) $ (592)
Net realized gain (loss) on investment
transactions ............................................. 6,398 4,029
Change in net unrealized appreciation/
depreciation of investments .............................. 1,539 69,875
---------------------------------------------------------------------------------------
Increase in net assets from
operations ............................................... 7,215 73,312
---------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1)
Net investment income .................................... -- --
Net realized gain on investment transactions ............. -- (4,405)
---------------------------------------------------------------------------------------
Total distributions to shareholders .................... -- (4,405)
---------------------------------------------------------------------------------------
Increase from capital share transactions (Note 6) ......... 54,828 85,511
---------------------------------------------------------------------------------------
Total increase in net assets ........................... 62,043 154,418
NET ASSETS:
Beginning of period ...................................... 334,743 180,325
---------------------------------------------------------------------------------------
End of period ............................................ $396,786 $334,743
========================================================================================
</TABLE>
See notes to financial statements.
57
<PAGE>
--------------------------------------------------------------------------------
CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited)
--------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Mutual Fund Investment Trust (the "Trust") was organized on September 23, 1997
as a Massachusetts Business Trust, and is registered under the Investment
Company Act of 1940, as amended, (the "1940 Act") as an open-end management
investment company. Chase Money Market Fund ("MMF"), Chase Short-Intermediate
Term U.S. Government Securities Fund ("STGSF"), Chase Intermediate Term Bond
Fund ("ITBF"), Chase U.S. Government Securities Fund ("GSF"), Chase Income Fund
("IF"), Chase Balanced Fund ("BF"), Chase Equity Income Fund ("EIF"), Chase
Small Capitalization Fund ("SCF"), Chase Core Equity Fund ("CEF") and Chase
Equity Growth Fund ("EGF"), collectively the "Funds", are separate series of
the Trust. Each Fund offers Premier and Investor classes of shares.
All classes of shares have equal voting rights as to earnings, assets and voting
privileges, except that each class may bear different transfer agent,
distribution, and shareholder servicing expenses, and each class has exclusive
voting rights with respect to its distribution plan and shareholder servicing
agreement. Premier Shares may be purchased only by Financial Intermediaries who
are able to meet the minimum investment requirement.
The Funds were established on January 1, 1998 for the conversion of the AVESTA
Trust to the newly created Chase Funds of the Mutual Fund Investment Trust.
AVESTA Trust contributed securities and other assets (net of liabilities) in a
tax-free exchange for shares of the corresponding portfolio of the newly created
Funds. The Chase Manhattan Bank agreed to bear all costs related to conversion.
On August 12, 1999, CEF and EGF adopted Master Feeder Fund Structures by
contributing substantially all of their assets and liabilities to Core Equity
Portfolio ("CEP") and Equity Growth Portfolio ("EGP"), respectively
(collectively, the "Portfolios") in a tax-free exchange for beneficial ownership
of those Portfolios.
The following is a summary of significant accounting policies followed by the
Funds:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
A. CEF and EGF
CEF and EGF utilize the Master Feeder Fund Structure and seek to achieve
their investment objectives by investing all of their investable assets in
CEP and EGP, respectively, which like the Funds, are open-end management
investment companies having the same investment objectives as the Funds. As
of June 30, 2000, CEF and EGF owned 76.76% and 86.52% of the net assets of
their respective Portfolios. The financial statements of the Portfolios,
including the Portfolios of Investments, are included elsewhere in this
report and should be read in conjunction with the financial statements of
the Funds.
58
<PAGE>
CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
1. Valuation of investments -- CEF and EGF record their investments in
their respective Portfolios at value. Securities of the Portfolios are
recorded at value as more fully discussed in the notes to those financial
statements.
2. Investment income and expenses -- CEF and EGF record daily their
pro-rata share of their respective Portfolio's income, expenses and
realized and unrealized gains and losses. In addition, the Funds accrued
their own expenses daily as incurred. Realized gains/losses and changes
in unrealized appreciation/depreciation represent the Fund's share of
such elements allocated from the Portfolio.
B. MMF, STGSF, ITBF, GSF, IF, BF, EIF and SCF
1. Valuation of investments -- Equity securities are valued at the last
sale price on the exchange on which they are primarily traded, including
the NASDAQ National Market. Securities for which sale prices are not
available and other over-the-counter securities are valued at the last
quoted bid price. Except for MMF, bonds and other fixed income securities
(other than short-term obligations), including listed issues, are valued
on the basis of valuations supplied by pricing services or by matrix
pricing systems of a major dealer in bonds. Short-term debt securities
with 61 days or more to maturity at time of purchase are valued, through
the 61st day prior to maturity, at market value based on quotations
obtained from market makers or other appropriate sources; thereafter, the
value on the 61st day is amortized on a straight-line basis over the
remaining number of days to maturity. Short-term investments with 60 days
or less to maturity at time of purchase are valued at amortized cost,
which approximates market. Portfolio securities for which there are no
such quotations or valuations are valued at fair value as determined in
good faith by or at the direction of the Trustees.
Money Market instruments held by MMF are valued at amortized cost, which
approximates market value. The Trust's use of amortized cost is subject
to the Trust's compliance with certain conditions specified under Rule
2a-7 of the 1940 Act.
2. Repurchase agreements -- Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Funds of the Trust may transfer
uninvested cash balances into one or more joint trading accounts for the
purpose of investing in repurchase agreements. It is the Funds' policy
that repurchase agreements are fully collateralized by U.S. Treasury and
Government Agency securities. All collateral is held in one or more joint
trading accounts by the Trust's custodian bank, subcustodian, or a bank
with which the custodian bank has entered into a subcustodian agreement,
or is segregated in the Federal Reserve Book Entry System.
In connection with transactions in repurchase agreements, if the seller
defaults and the value of the collateral declines, or if the seller
enters an insolvency proceeding, realization of the collateral by the
Fund may be delayed or limited.
59
<PAGE>
CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
3. Security transactions and investment income -- Investment transactions
are accounted for on the trade date (the date the order to buy or sell is
executed). Securities gains and losses are calculated on the identified
cost basis. Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date.
Securities purchased or sold on a when-issued, to be announced (TBA) or
delayed-delivery basis may be settled a month or more after the trade
date; interest income is not accrued until settlement date. Each Fund
segregates assets with a current value at least equal to the amount of
its when-issued and TBA purchase commitments.
C. General Policies
1. Expenses -- Expenses directly attributable to a Fund are charged to
that Fund; other expenses are allocated proportionately among the Funds
within the Trust in relation to the net assets of each Fund or on another
reasonable basis. Expenses directly attributable to a particular class
are charged directly to such class. In calculating the net asset value
per share of each class, investment income, realized and unrealized gains
and losses and expenses other than class specific expenses (including
transfer agent fees) are allocated daily to each class of shares based
upon the proportion of net assets of each class at the beginning of each
day.
2. Federal income taxes -- Each Fund is treated as a separate taxable
entity for Federal income tax purposes. Each Fund's policy is to comply
with the provisions of the Internal Revenue Code applicable to regulated
investment companies and to distribute to shareholders all of its
distributable net investment income and net realized gain on investments.
In addition, each Fund intends to make distributions as required to avoid
excise taxes. Accordingly, no provision for Federal income or excise tax
is necessary.
3. Distributions to shareholders -- Dividends and distributions paid to
shareholders are recorded on the ex-dividend date. The amount of
dividends and distributions from net investment income and net realized
capital gains is determined in accordance with Federal income tax
regulations, which may differ from generally accepted accounting
principles. To the extent these "book/tax" differences are permanent in
nature (i.e., that they result from other than timing of recognition--
"temporary differences"), such amounts are reclassified within the
capital accounts based on their Federal tax-basis treatment.
Dividends and distributions which exceed net investment income or net
realized capital gains for financial reporting purposes but not for tax
purposes are reported as distributions in excess of net investment income
or net realized capital gains.
60
<PAGE>
CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
2. Fees and Other Transactions with Affiliates
A. Investment advisory fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank ("Chase" or the "Advisor"), acts as
the Investment Advisor to MMF, STGSF, ITBF, GSF, IF, BF, EIF and SCF.
Chase is a direct wholly-owned subsidiary of The Chase Manhattan
Corporation. As Investment Advisor, Chase supervises the investments of
the Funds and for such services is paid a fee. The fee is computed daily
and paid monthly at an annual rate equal to 0.30% for MMF, 0.50% for
STGSF, ITBF, GSF and IF, and 0.75% for BF, EIF and SCF of average daily
net assets. The Advisor voluntarily waived fees as outlined in Note 2.D.
Chase Bank of Texas N.A. ("Chase Texas"), a wholly-owned subsidiary of
The Chase Manhattan Corporation, is the Sub-Investment Advisor to MMF,
STGSF, ITBF, GSF, IF, BF, EIF and SCF. Pursuant to the Sub-Investment
Advisory Agreement between Chase Texas and Chase, Chase Texas is entitled
to receive a fee payable by Chase from its advisory fee, at an annual
rate equal to 0.15% for MMF, 0.25% for STGSF, ITBF, GSF and IF, and
0.375% for BF, EIF and SCF of average daily net assets.
B. Distribution and sub-administration fees -- Pursuant to a Distribution
and Sub-Administration Agreement, CFD Fund Distributors, Inc. ("CFD" or
the "Distributor"), a wholly-owned subsidiary of The BISYS Group, Inc.
("BISYS"), acts as the Funds' distributor and sub-administrator.
The Trust has adopted a Rule 12b-1 distribution plan for Investor Class
shares, which provides for the payment of distribution fees at an annual
rate of up to 0.10% of the average daily net assets attributable to
Investor Class Shares of the Money Market Fund and at an annual rate of
up to 0.25% of the average daily net assets attributable to Investor
Class Shares of each other Fund.
For the sub-administrative services it performs, CFD is entitled to
receive a fee from each Fund at an annual rate equal to 0.05% of the
Fund's average daily net assets.
61
<PAGE>
CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
The Distributor voluntarily waived fees as outlined in Note 2.D.
C. Administration fee -- Pursuant to an Administration Agreement, Chase
(the "Administrator") provides certain administration services to the
Trust. For these services and facilities, the Administrator receives from
the Funds (except for CEF and EGF) a fee computed at the annual rate
equal to 0.10% of the respective Fund's average daily net assets. The
Administrator receives from CEF and EGF a fee computed at an annual rate
equal to 0.05% of average daily net assets.
The Administrator voluntarily waived fees as outlined in Note 2.D.
D. Waiver of fees -- For the six months ended June 30, 2000, the Funds'
vendors voluntarily waived fees for each of the Funds as follows (in
thousands):
<TABLE>
<CAPTION>
Investment
Fund Advisory Administration Distribution Total
===============================================================================
<S> <C> <C> <C> <C>
MMF ........... $85 $-- $-- $85
STGSF ......... 61 -- -- 61
ITBF .......... 56 -- 1 57
GSF ........... 15 5 -- 20
IF ............ 64 -- 1 65
BF ............ 50 -- 2 52
EIF ........... 41 -- 6 47
SCF ........... 65 -- 3 68
CEF ........... -- -- 9 9
EGF ........... -- -- 29 29
</TABLE>
E. Other -- Certain officers of the Trust are officers of CFD or of its
parent corporation, BISYS.
Chase provides portfolio accounting and custody services for the Funds,
except for CEF and EGF. Compensation for such services is presented in
the Statement of Operations as custodian fees. Custodian fees are subject
to reduction by credits earned by each Fund, based on cash balances held
by Chase as custodian. Such earnings credits are presented separately in
the Statement of Operations. The Funds could have invested the cash
balances utilized in connection with the earnings credit arrangements in
income producing assets if they had not entered into such arrangements.
The Distributor voluntarily reimbursed expenses of the Funds in the
amounts as shown on the Statement of Operations.
3. Investment Transactions
For the six months ended June 30, 2000, purchases and sales of investments
(excluding short-term investments) were as follows (in thousands):
62
<PAGE>
CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
<TABLE>
<CAPTION>
Purchases Sales Purchases Sales
(excluding U.S. (excluding U.S. of U.S. of U.S.
Government) Government) Government Government
================================================================================
<S> <C> <C> <C> <C>
STGSF ......... $ -- $ -- $ 16,531 $19,386
ITBF .......... 17,900 13,584 12,762 8,389
GSF ........... -- -- 2,939 4,428
IF ............ 22,286 21,145 29,837 31,585
BF ............ 46,317 37,144 38,299 40,583
EIF ........... 10,233 15,383 -- --
SCF ........... 40,713 31,085 -- --
</TABLE>
4. Federal Income Tax Matters
For Federal income tax purposes, the cost and unrealized appreciation
(depreciation) in value of the investment securities at June 30, 2000, are as
follows (in thousands):
<TABLE>
<CAPTION>
Gross Gross Net unrealized
Aggregate unrealized unrealized appreciation/
cost appreciation depreciation (depreciation)
===============================================================================
<S> <C> <C> <C> <C>
STGSF ......... $ 30,832 $ 106 $ (296) $ (190)
ITBF .......... 48,902 188 (524) (336)
GSF ........... 6,142 80 (47) 33
IF ............ 65,132 283 (610) (327)
BF ............ 98,742 17,886 (3,401) 14,485
EIF ........... 112,880 63,465 (5,226) 58,239
SCF ........... 87,584 30,614 (4,491) 26,123
</TABLE>
5. Concentrations
At June 30, 2000, EIF and SCF invested 25.6% and 32.6%, respectively, of their
portfolios in securities issued by technology sector companies, such as
computer hardware and software companies, internet connectivity providers, and
telecommunications equipment manufacturers. Valuations of companies in the
technology sector are typically subject to greater volatility than other
sectors.
63
<PAGE>
CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
6. Capital Share Transactions
Capital share transactions were as follows for the periods presented (amounts in
thousands):
MONEY MARKET FUND
<TABLE>
<CAPTION>
=========================================================================================================
Premier Shares Investor Shares
=========================================================================================================
Six Months Ended June 30, 2000
Amount Shares Amount Shares
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 191,666 191,666 $ 255 255
Shares issued in reinvestment of distributions 6,031 6,031 6 6
Shares redeemed (167,068) (167,068) (163) (163)
---------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 30,629 30,629 $ 98 98
=========================================================================================================
Year Ended December 31, 1999
---------------------------------------------------------------------------------------------------------
Shares sold $ 329,869 329,869 $ 215 215
Shares issued in reinvestment of distributions 8,626 8,626 4 4
Shares redeemed (237,852) (237,852) (77) (77)
---------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 100,643 100,643 $ 142 142
=========================================================================================================
</TABLE>
SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND
<TABLE>
<CAPTION>
=========================================================================================================
Premier Shares Investor Shares
=========================================================================================================
Six Months Ended June 30, 2000
Amount Shares Amount Shares
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 4,876 407 $ 63 5
Shares issued in reinvestment of distributions 836 70 2 --
Shares redeemed (7,454) (622) (9) (1)
---------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (1,742) (145) $ 56 4
=========================================================================================================
Year Ended December 31, 1999
---------------------------------------------------------------------------------------------------------
Shares sold $ 10,757 872 $ 77 6
Shares issued in reinvestment of distributions 1,622 132 1 --
Shares redeemed (9,760) (794) (13) (1)
---------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 2,619 210 $ 65 5
=========================================================================================================
</TABLE>
64
<PAGE>
CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
INTERMEDIATE TERM BOND FUND
<TABLE>
<CAPTION>
=========================================================================================================
Premier Shares Investor Shares
=========================================================================================================
Six Months Ended June 30, 2000
Amount Shares Amount Shares
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 14,248 1,182 $ 798 66
Shares issued in reinvestment of distributions 1,183 98 17 2
Shares redeemed (7,240) (602) (56) (5)
---------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 8,191 678 $ 759 63
=========================================================================================================
Year Ended December 31, 1999
---------------------------------------------------------------------------------------------------------
Shares sold $ 16,653 1,339 $ 482 39
Shares issued in reinvestment of distributions 1,892 153 12 1
Shares redeemed (9,622) (776) (33) (3)
---------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 8,923 716 $ 461 37
=========================================================================================================
</TABLE>
U.S. GOVERNMENT SECURITIES FUND
<TABLE>
<CAPTION>
=========================================================================================================
Premier Shares Investor Shares
=========================================================================================================
Six Months Ended June 30, 2000
Amount Shares Amount Shares
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 841 65 $ 15 1
Shares issued in reinvestment of distributions 194 15 2 --
Shares redeemed (2,564) (200) (39) (3)
---------------------------------------------------------------------------------------------------------
Net decrease in Fund shares outstanding $ (1,529) (120) $(22) (2)
=========================================================================================================
Year Ended December 31, 1999
---------------------------------------------------------------------------------------------------------
Shares sold $ 6,505 489 $ 56 4
Shares issued in reinvestment of distributions 316 24 2 --
Shares redeemed (2,303) (176) (10) (1)
---------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 4,518 337 $ 48 3
=========================================================================================================
</TABLE>
65
<PAGE>
CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
INCOME FUND
<TABLE>
<CAPTION>
=========================================================================================================
Premier Shares Investor Shares
=========================================================================================================
Six Months Ended June 30, 2000
Amount Shares Amount Shares
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 8,108 435 $ 616 33
Shares issued in reinvestment of distributions 1,843 99 10 --
Shares redeemed (13,274) (713) (76) (4)
---------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (3,323) (179) $ 550 29
=========================================================================================================
Year Ended December 31, 1999
---------------------------------------------------------------------------------------------------------
Shares sold $ 25,281 1,289 $ 586 30
Shares issued in reinvestment of distributions 3,825 198 10 1
Shares redeemed (17,803) (918) (88) (5)
---------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 11,303 569 $ 508 26
=========================================================================================================
</TABLE>
BALANCED FUND
<TABLE>
<CAPTION>
=========================================================================================================
Premier Shares Investor Shares
=========================================================================================================
Six Months Ended June 30, 2000
Amount Shares Amount Shares
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 27,627 717 $ 790 21
Shares issued in reinvestment of distributions 1,324 33 19 --
Shares redeemed (23,126) (598) (671) (17)
---------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 5,825 152 $ 138 4
=========================================================================================================
Year Ended December 31, 1999
---------------------------------------------------------------------------------------------------------
Shares sold $ 54,740 1,536 $ 4,478 124
Shares issued in reinvestment of distributions 2,202 61 28 1
Shares redeemed (22,470) (625) (2,885) (81)
---------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 34,472 972 $ 1,621 44
=========================================================================================================
</TABLE>
66
<PAGE>
CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
EQUITY INCOME FUND
<TABLE>
<CAPTION>
=========================================================================================================
Premier Shares Investor Shares
=========================================================================================================
Six Months Ended June 30, 2000
Amount Shares Amount Shares
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 23,476 473 $ 3,363 68
Shares issued in reinvestment of distributions 443 9 8 --
Shares redeemed (33,951) (687) (1,564) (31)
---------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $(10,032) (205) $ 1,807 37
=========================================================================================================
Year Ended December 31, 1999
---------------------------------------------------------------------------------------------------------
Shares sold $ 55,841 1,131 $ 4,015 81
Shares issued in reinvestment of distributions 7,374 151 145 3
Shares redeemed (31,339) (637) (523) (11)
---------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 31,876 645 $ 3,637 73
=========================================================================================================
</TABLE>
SMALL CAPITALIZATION FUND
<TABLE>
<CAPTION>
=========================================================================================================
Premier Shares Investor Shares
=========================================================================================================
Six Months Ended June 30, 2000
Amount Shares Amount Shares
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 19,433 827 $2,882 119
Shares issued in reinvestment of distributions -- -- -- --
Shares redeemed (13,996) (586) (234) (10)
---------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 5,437 241 $2,648 109
=========================================================================================================
Year Ended December 31, 1999
---------------------------------------------------------------------------------------------------------
Shares sold $ 34,842 1,764 $ 776 41
Shares issued in reinvestment of distributions -- -- -- --
Shares redeemed (17,865) (898) (84) (4)
---------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 16,977 866 $ 692 37
=========================================================================================================
</TABLE>
67
<PAGE>
CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
CORE EQUITY FUND
<TABLE>
<CAPTION>
=========================================================================================================
Premier Shares Investor Shares
=========================================================================================================
Six Months Ended June 30, 2000
Amount Shares Amount Shares
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 40,955 1,285 $ 4,401 139
Shares issued in reinvestment of distributions -- -- -- --
Shares redeemed (31,575) (970) (1,782) (57)
---------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 9,380 315 $ 2,619 82
=========================================================================================================
Year Ended December 31, 1999
---------------------------------------------------------------------------------------------------------
Shares sold $ 99,241 3,481 $ 6,109 205
Shares issued in reinvestment of distributions 3,169 102 68 2
Shares redeemed (38,291) (1,315) (530) (17)
---------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 64,119 2,268 $ 5,647 190
=========================================================================================================
</TABLE>
EQUITY GROWTH FUND
<TABLE>
<CAPTION>
=========================================================================================================
Premier Shares Investor Shares
=========================================================================================================
Six Months Ended June 30, 2000
Amount Shares Amount Shares
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 88,251 1,287 $19,675 282
Shares issued in reinvestment of distributions -- -- -- --
Shares redeemed (50,268) (724) (2,830) (42)
---------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 37,983 563 $16,845 240
=========================================================================================================
Year Ended December 31, 1999
Shares sold $121,695 2,098 $11,697 201
Shares issued in reinvestment of distributions 4,136 63 188 3
Shares redeemed (51,649) (883) (556) (9)
---------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 74,182 1,278 $11,329 195
=========================================================================================================
</TABLE>
68
<PAGE>
--------------------------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited)
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (unaudited)
<TABLE>
<CAPTION>
Chase Money Market Fund
-----------------------------------------------------------------
Premier Shares
-----------------------------------------------------------------
1/1/00 For the Years Ended December 31,
Through -----------------------------------------------------
6/30/00 1999 1998 1997 1996 1995
---------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- ------
Income from investment operations:
Net investment income ........................ 0.03 0.05 0.05 0.05 0.05 0.05
Net gains or losses in investments (both
realized and unrealized) .................... -- -- -- -- -- --
----- ----- ----- ---- ----- -----
Total from investment operations ............ 0.03 0.05 0.05 0.05 0.05 0.05
----- ----- ----- ---- ----- -----
Less distributions:
Dividends from net investment income ......... 0.03 0.05 0.05 0.05 0.05 0.05
Distributions from capital gains ............. -- -- -- -- -- --
----- ----- ----- ---- ----- -----
Total distributions ......................... 0.03 0.05 0.05 0.05 0.05 0.05
----- ----- ----- ---- ----- -----
Net asset value, end of period ................ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== =====
Total return .................................. 2.89% 4.89% 5.20% 5.18% 5.06% 5.57%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ 327 $ 296 $ 195 $ 135 $ 119 $ 71
Ratios to average net assets:#
Expenses ..................................... 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Net investment income ........................ 5.74% 4.81% 5.07% 5.09% 4.93% 5.43%
Expenses without waivers, reimbursements
and earnings credits ........................ 0.56% 0.58% 0.60% 0.74% 0.72% 0.72%
Net investment income without waivers,
reimbursements and earnings credits ......... 5.68% 4.73% 4.97% 4.85% 4.71% 5.21%
=================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Chase Money Market Fund
-------------------------------------
Investor Shares
-------------------------------------
1/1/00 Year 11/10/98*
Through Ended Through
6/30/00 12/31/99 12/31/98
--------- -------- ----------
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $1.00 $ 1.00 $1.00
----- ------ -----
Income from investment operations:
Net investment income ........................ 0.03 0.05 0.01
Net gains or losses in investments (both
realized and unrealized) .................... -- -- --
----- ------ -----
Total from investment operations ............ 0.03 0.05 0.01
----- ------ -----
Less distributions:
Dividends from net investment income ......... 0.03 0.05 0.01
Distributions from capital gains ............. -- -- --
----- ------ -----
Total distributions ......................... 0.03 0.05 0.01
----- ------ -----
Net asset value, end of period ................ $1.00 $ 1.00 $1.00
===== ====== =====
Total return .................................. 2.84% 4.78% 0.69%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ + $ + $ +
Ratios to average net assets:#
Expenses ..................................... 0.60% 0.60% 0.60%
Net investment income ........................ 5.66% 4.71% 4.72%
Expenses without waivers, reimbursements
and earnings credits ........................ 9.30% 25.25% 0.80%
Net investment income without waivers,
reimbursements and earnings credits ......... (3.04%) (19.94%) 4.52%
========================================================================================
</TABLE>
* Commencement of offering of class of shares.
# Short periods have been annualized.
+ Amount rounds to less than one million.
See notes to financial statements.
69
<PAGE>
--------------------------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited)
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (unaudited)
<TABLE>
<CAPTION>
Chase Short-Intermediate Term U.S. Government Securities Fund
-----------------------------------------------------------------------
Premier Shares
-----------------------------------------------------------------------
1/1/00 For the Years Ended December 31,
Through ----------------------------------------------------------
6/30/00 1999 1998 1997 1996 1995
--------- -------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $12.05 $12.60 $12.39 $11.66 $11.35 $10.14
------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income ........................ 0.34 0.60 0.63 0.67 0.60 0.58
Net gains or losses in investments (both
realized and unrealized) .................... (0.01) (0.51) 0.25 0.06 (0.29) 0.63
------ ------ ------ ------ ------ ------
Total from investment operations ............ 0.33 0.09 0.88 0.73 0.31 1.21
------ ------ ------ ----- ------ ------
Less distributions:
Dividends from net investment income ......... 0.34 0.60 0.63 -- -- --
Distributions from capital gains ............. -- 0.04 0.04 -- -- --
------ ------ ------ ------ ------ ------
Total distributions ......................... 0.34 0.64 0.67 -- -- --
------ ------ ------ ------ ----- ------
Net asset value, end of period ................ $12.04 $12.05 $12.60 $12.39 $11.66 $11.35
====== ====== ====== ====== ====== ======
Total return .................................. 2.78% 0.72% 7.35% 6.30% 2.68% 12.01%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ 30 $ 31 $ 31 $ 24 $ 29 $ 29
Ratios to average net assets:#
Expenses ..................................... 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%
Net investment income ........................ 5.68% 4.82% 5.06% 5.40% 5.26% 5.38%
Expenses without waivers, reimbursements
and earnings credits ........................ 1.15% 1.12% 1.12% 1.01% 0.88% 0.91%
Net investment income without waivers,
reimbursements and earnings credits ......... 5.28% 4.45% 4.69% 5.14% 5.13% 5.22%
Portfolio turnover rate ....................... 59% 91% 87% 63% 177% 187%
=======================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Chase Short-Intermediate Term
U.S. Government Securities Fund
----------------------------------
Investor Shares
----------------------------------
1/1/00 Year 11/10/98*
Through Ended Through
6/30/00 12/31/99 12/31/98
--------- -------- ---------
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $12.04 $12.59 $12.64
------ ------ ------
Income from investment operations:
Net investment income ........................ 0.32 0.57 0.08
Net gains or losses in investments (both
realized and unrealized) .................... -- (0.51) --
------ ------ ------
Total from investment operations ............ 0.32 0.06 0.08
------ ------ ------
Less distributions:
Dividends from net investment income ......... 0.32 0.57 0.09
Distributions from capital gains ............. -- 0.04 0.04
------ ------ ------
Total distributions ......................... 0.32 0.61 0.13
------- ------- ------
Net asset value, end of period ................ $12.04 $12.04 $12.59
====== ====== ======
Total return .................................. 2.74% 0.48% 0.60%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ + $ + $ +
Ratios to average net assets:#
Expenses ..................................... 1.00% 0.99% 1.03%
Net investment income ........................ 5.43% 4.58% 4.47%
Expenses without waivers, reimbursements
and earnings credits ........................ 17.71% 57.39% 1.58%
Net investment income without waivers,
reimbursements and earnings credits ......... (11.28%) (51.82%) 3.92%
Portfolio turnover rate ....................... 59% 91% 87%
==================================================================================
</TABLE>
* Commencement of offering of class of shares.
# Short periods have been annualized.
+ Amount rounds to less than one million.
See notes to financial statements.
70
<PAGE>
--------------------------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited)
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (unaudited)
<TABLE>
<CAPTION>
Chase Intermediate Term Bond Fund
----------------------------------------------------------------------
Premier Shares
----------------------------------------------------------------------
1/1/00 For the Years Ended December 31,
Through --------------------------------------------------------
6/30/00 1999 1998 1997 1996 1995
--------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $12.06 $12.87 $12.75 $11.89 $11.67 $ 9.99
------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income ........................ 0.36 0.66 0.68 0.56 0.61 0.64
Net gains or losses in investments (both
realized and unrealized) .................... 0.03 (0.80) 0.27 0.30 (0.39) 1.04
------ ------ ------ ------ ------ ------
Total from investment operations ............ 0.39 (0.14) 0.95 0.86 0.22 1.68
------ ------ ------ ------ ------ -----
Less distributions:
Dividends from net investment income ......... 0.36 0.66 0.68 -- -- --
Distributions from capital gains ............. -- 0.01 0.15 -- -- --
------ ------ ------ ------ ------ ------
Total distributions ......................... 0.36 0.67 0.83 -- -- --
------ ------ ------- ------ ------ ------
Net asset value, end of period ................ $12.09 $12.06 $12.87 $12.75 $11.89 $11.67
====== ====== ====== ====== ====== ======
Total return .................................. 3.26% (1.11%) 7.63% 7.26% 1.86% 16.79%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ 48 $ 39 $ 33 $ 19 $ 7 $ 5
Ratios to average net assets:#
Expenses ..................................... 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%
Net investment income ........................ 5.97% 5.33% 5.25% 5.61% 5.32% 5.89%
Expenses without waivers, reimbursements
and earnings credits ........................ 1.02% 1.18% 1.27% 1.25% 1.42% 1.43%
Net investment income without waivers,
reimbursements and earnings credits ......... 5.70% 4.90% 4.73% 5.11% 4.65% 5.21%
Portfolio turnover rate ....................... 60% 85% 135% 14% 134% 198%
======================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Chase Intermediate Term Bond Fund
------------------------------------
Investor Shares
------------------------------------
1/1/00 Year 11/10/98*
Through Ended Through
6/30/00 12/31/99 12/31/98
---------- --------- ---------
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $12.06 $12.87 $12.91
------ ------ ------
Income from investment operations:
Net investment income ........................ 0.34 0.63 0.09
Net gains or losses in investments (both
realized and unrealized) .................... 0.03 (0.80) 0.11
------- ------ ------
Total from investment operations ............ 0.37 (0.17) 0.20
------ ------ ------
Less distributions:
Dividends from net investment income ......... 0.34 0.63 0.09
Distributions from capital gains ............. -- 0.01 0.15
------ ------ ------
Total distributions ......................... 0.34 0.64 0.24
------ ------ ------
Net asset value, end of period ................ $12.09 $12.06 $12.87
====== ====== ======
Total return .................................. 3.13% (1.36%) 1.52%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ 1 $ + $ +
Ratios to average net assets:#
Expenses ..................................... 1.00% 0.99% 1.03%
Net investment income ........................ 5.74% 5.09% 4.64%
Expenses without waivers, reimbursements
and earnings credits ........................ 4.80% 9.79% 1.72%
Net investment income without waivers,
reimbursements and earnings credits ......... 1.94% (3.71%) 3.95%
Portfolio turnover rate ....................... 60% 85% 135%
=========================================================================================
</TABLE>
* Commencement of offering of class of shares.
# Short periods have been annualized.
+ Amount rounds to less than one million.
See notes to financial statements.
71
<PAGE>
--------------------------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited)
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (unaudited)
<TABLE>
<CAPTION>
Chase U.S. Government Securities Fund
--------------------------------------------------------------
Premier Shares
--------------------------------------------------------------
1/1/00 For the Years Ended December 31,
Through ---------------------------------------------------
6/30/00 1999 1998 1997 1996 1995
-------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $12.84 $13.83 $13.98 $12.76 $13.01 $10.00
------ ------ ------ ------- ------ ------
Income from investment operations:
Net investment income ........................ 0.41 0.64 0.72 0.75 0.74 0.73
Net gains or losses in investments (both
realized and unrealized) .................... 0.14 (0.99) 0.54 0.47 (0.99) 2.28
------ ------ ------ ------ ------ ------
Total from investment operations ............ 0.55 (0.35) 1.26 1.22 (0.25) 3.01
------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income ......... 0.41 0.64 0.72 -- -- --
Distributions from capital gains ............. -- -- 0.68 -- -- --
In excess of realized capital gains .......... -- -- 0.01 -- -- --
------ ------ ------ ------ ------ ------
Total distributions ......................... 0.41 0.64 1.41 -- -- --
------ ------ ------ ------ ------ ------
Net asset value, end of period ................ $12.98 $12.84 $13.83 $13.98 $12.76 $13.01
====== ====== ====== ====== ====== ======
Total return .................................. 4.37% (2.55%) 9.28% 9.55% (1.89%) 30.11%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ 6 $ 8 $ 4 $ 3 $ 3 $ 3
Ratios to average net assets:#
Expenses ..................................... 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%
Net investment income ........................ 6.38% 4.87% 5.07% 5.73% 6.01% 6.38%
Expenses without waivers, reimbursements
and earnings credits ........................ 2.44% 2.44% 3.85% 3.15% 2.09% 2.22%
Net investment income without waivers,
reimbursements and earnings credits ......... 4.69% 3.18% 1.97% 3.33% 4.67% 4.91%
Portfolio turnover rate ....................... 50% 19% 110% 87% 48% 17%
</TABLE>
<TABLE>
<CAPTION>
Chase U.S. Government Securities Fund
-------------------------------------
Investor Shares
-------------------------------------
1/1/00 Year 11/10/98*
Through Ended Through
6/30/00 12/31/99 12/31/98
------- -------- ---------
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $ 12.84 $ 13.83 $14.42
------- ------- ------
Income from investment operations:
Net investment income ........................ 0.40 0.61 0.09
Net gains or losses in investments (both
realized and unrealized) .................... 0.14 (0.99) 0.10
------- ------- ------
Total from investment operations ............ 0.54 (0.38) 0.19
------- ------- ------
Less distributions:
Dividends from net investment income ......... 0.40 0.61 0.09
Distributions from capital gains ............. -- -- 0.68
In excess of realized capital gains .......... -- -- 0.01
------- ------- ------
Total distributions ......................... 0.40 0.61 0.78
------- ------- ------
Net asset value, end of period ................ $ 12.98 12.84 $13.83
======= ======= ======
Total return .................................. 4.23% (2.79%) 1.37%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ + $ + $ +
Ratios to average net assets:#
Expenses ..................................... 1.00% 1.00% 1.03%
Net investment income ........................ 6.13% 4.62% 4.45%
Expenses without waivers, reimbursements
and earnings credits ........................ 28.53% 45.80% 1.92%
Net investment income without waivers,
reimbursements and earnings credits ......... (21.40%) (40.18%) 3.56%
Portfolio turnover rate ....................... 50% 19% 110%
</TABLE>
* Commencement of offering of class of shares.
# Short periods have been annualized.
+ Amount rounds to less than one million.
See notes to financial statements.
72
<PAGE>
------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited)
------------------------------------------------------------
FINANCIAL HIGHLIGHTS (unaudited)
<TABLE>
<CAPTION>
Chase Income Fund
------------------------------------------------------------
Premier Shares
------------------------------------------------------------
1/1/00 For the Years Ended December 31,
Through -------------------------------------------------
6/30/00 1999 1998 1997 1996 1995
--------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $18.71 $20.47 $20.18 $18.56 $18.21 $15.39
------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income ........................ 0.57 1.03 1.09 1.14 1.00 0.97
Net gains or losses in investments (both
realized and unrealized) .................... (0.06) 1.59) 0.77 0.48 (0.65) 1.85
------ ------ ------ ------ ------ ------
Total from investment operations ............ 0.51 (0.56) 1.86 1.62 0.35 2.82
------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income ......... 0.57 1.03 1.09 -- -- --
Distributions from capital gains ............. -- 0.17 0.48 -- -- --
------ ------ ------ ------ ------ ------
Total distributions ......................... 0.57 1.20 1.57 -- -- --
------ ------ ------ ------ ------ ------
Net asset value, end of period ................ $18.65 $18.71 $20.47 $20.18 $18.56 $18.21
====== ====== ====== ====== ====== ======
Total return .................................. 2.78% (2.78%) 9.47% 8.73% 1.91% 18.38%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ 62 $ 65 $ 60 $ 51 $ 54 $ 57
Ratios to average net assets:#
Expenses ..................................... 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%
Net investment income ........................ 6.19% 5.28% 5.28% 5.82% 5.58% 5.77%
Expenses without waivers, reimbursements
and earnings credits ........................ 0.95% 0.93% 0.94% 1.14% 1.07% 1.08%
Net investment income without waivers,
reimbursements and earnings credits ......... 5.99% 5.10% 5.09% 5.43% 5.26% 5.44%
Portfolio turnover rate ....................... 95% 120% 54% 97% 72% 93%
</TABLE>
<TABLE>
<CAPTION>
Chase Income Fund
-------------------------------------
Investor Shares
-------------------------------------
1/1/00 Year 11/10/98*
Through Ended Through
6/30/00 12/31/99 12/31/98
------- -------- ---------
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $18.72 $ 20.46 $20.77
------ ------- ------
Income from investment operations:
Net investment income ........................ 0.55 0.98 0.14
Net gains or losses in investments (both
realized and unrealized) .................... (0.05) (1.57) 0.18
------ ------- ------
Total from investment operations ............ 0.50 (0.59) 0.32
------ ------- ------
Less distributions:
Dividends from net investment income ......... 0.55 0.98 0.15
Distributions from capital gains ............. -- 0.17 0.48
------ ------- ------
Total distributions ......................... 0.55 1.15 0.63
------ ------- ------
Net asset value, end of period ................ $18.67 $ 18.72 $20.46
====== ======= ======
Total return .................................. 2.71% (2.92% 1.54%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ 1 $ 1 $ 1
Ratios to average net assets:#
Expenses ..................................... 0.99% 0.99% 1.03%
Net investment income ........................ 5.94% 5.04% 4.72%
Expenses without waivers, reimbursements
and earnings credits ........................ 4.55% 6.22% 1.44%
Net investment income without waivers,
reimbursements and earnings credits ......... 2.38% (0.19%) 4.31%
Portfolio turnover rate ....................... 95% 120% 54%
</TABLE>
* Commencement of offering of class of shares.
# Short periods have been annualized.
See notes to financial statements.
73
<PAGE>
------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited)
------------------------------------------------------------
FINANCIAL HIGHLIGHTS (unaudited)
<TABLE>
<CAPTION>
Chase Balanced Fund
------------------------------------------------------------
Premier Shares
------------------------------------------------------------
1/1/00 For the Years Ended December 31,
Through -------------------------------------------------
6/30/00 1999 1998 1997 1996 1995
--------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $38.50 $34.54 $29.26 $23.66 $21.25 $17.16
------ ------ ------ ------ ------- -------
Income from investment operations:
Net investment income ........................ 0.42 0.78@ 0.73 0.74 0.63 0.57
Net gains or losses in investments (both
realized and unrealized) .................... 0.62 4.07 6.53 4.86 1.78 3.52
------ ------ ------ ------ ------- -------
Total from investment operations ............ 1.04 4.85 7.26 5.60 2.41 4.09
------ ------ ------ ------ ------- -------
Less distributions:
Dividends from net investment income ......... 0.48 0.70 0.73 -- -- --
Distributions from capital gains ............. -- 0.19 1.25 -- -- --
------ ------ ------ ------ ------- -------
Total distributions ......................... 0.48 0.89 1.98 -- -- --
------ ------ ------ ------ ------- -------
Net asset value, end of period ................ $39.06 $38.50 $34.54 $29.26 $23.66 $21.25
====== ====== ====== ====== ======= =======
Total return .................................. 2.68% 14.23% 25.15% 23.67% 11.31% 23.83%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ 111 $ 103 $ 59 $ 36 $ 23 $ 21
Ratios to average net assets:#
Expenses ..................................... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Net investment income ........................ 2.21% 2.19% 2.32% 2,73% 2.82% 2.94%
Expenses without waivers, reimbursements
and earnings credits ........................ 1.10% 1.19% 1.28% 1.28% 1.17% 1.17%
Net investment income without waivers,
reimbursements and earnings credits ......... 2.11% 2.00% 2.04% 2.45% 2.65% 2.77%
Portfolio turnover rate ....................... 74% 45% 58% 64% 70% 98%
</TABLE>
<TABLE>
<CAPTION>
Chase Balanced Fund
-------------------------------------
Investor Shares
-------------------------------------
1/1/00 Year 10/16/98*
Through Ended Through
6/30/00 12/31/99 12/31/98
------- -------- ---------
<S> <C> <C> <C>
er share operating performance:
Net asset value, beginning of period .......... $38.46 $34.51 $ 31.87
------ ------ --------
Income from investment operations:
Net investment income ........................ 0.39 0.70@ 0.10
Net gains or losses in investments (both
realized and unrealized) .................... 0.60 4.05 3.95
------ ------ --------
Total from investment operations ............ 0.99 4.75 4.05
------ ------ --------
Less distributions:
Dividends from net investment income ......... 0.43 0.61 0.16
Distributions from capital gains ............. -- 0.19 1.25
------ ------ --------
Total distributions ......................... 0.43 0.80 1.41
------ ------ --------
Net asset value, end of period ................ $39.02 $38.46 $ 34.51
====== ====== ========
Total return .................................. 2.55% 13.94% 12.78%
Ratios/supplemental data:
Net assets, end of period (millions) ......... 2 $ 2 $ 1
Ratios to average net assets:#
Expenses ..................................... 1.25% 1.25% 1.25%
Net investment income ........................ 1.97% 1.94% 1.84%
Expenses without waivers, reimbursements
and earnings credits ........................ 3.07% 3.34% 107.16%
Net investment income without waivers,
reimbursements and earnings credits ......... 0.15% (0.15%) (104.07%)
Portfolio turnover rate ....................... 74% 45% 58%
</TABLE>
* Commencement of offering of class of shares.
# Short periods have been annualized.
@ Calculated based upon average shares outstanding.
See notes to financial statements.
74
<PAGE>
------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited)
------------------------------------------------------------
FINANCIAL HIGHLIGHTS (unaudited)
<TABLE>
<CAPTION>
Chase Equity Income Fund
------------------------------------------------------------
Premier Shares
------------------------------------------------------------
1/1/00 For the Years Ended December 31,
Through -------------------------------------------------
6/30/00 1999 1998 1997 1996 1995
--------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $49.80 $46.14 $36.97 $28.21 $23.93 $17.90
------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income ........................ 0.14 0.32@ 0.33 0.40 0.43 0.44
Net gains or losses in investments (both
realized and unrealized) .................... 0.58 5.65 9.32 8.36 3.85 5.59
------ ------ ------ ------ ------ ------
Total from investment operations ............ 0.72 5.97 9.65 8.76 4.28 6.03
------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income ......... 0.14 0.31 0.34 -- -- --
Distributions from capital gains ............. -- 2.00 0.14 -- -- --
------ ------ ------ ------ ------ ------
Total distributions ......................... 0.14 2.31 0.48 -- -- --
------ ------ ------ ------ ------ ------
Net asset value, end of period ................ 50.38 $49.80 $46.14 $36.97 $28.21 $23.93
====== ====== ====== ====== ====== ======
Total return .................................. 1.44% 13.06% 26.20% 31.50% 17.87% 33.72%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ 162 $ 170 $ 128 $ 75 $ 63 $ 55
Ratios to average net assets:#
Expenses ..................................... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Net investment income ........................ 0.56% 0.66% 0.82% 1.67% 1.67% 2.10%
Expenses without waivers, reimbursements
and earnings credits ........................ 1.05% 1.09% 1.10% 1.11% 1.07% 1.09%
Net investment income without waivers,
reimbursements and earnings credits ......... 0.51% 0.57% 0.72% 1.56% 1.60% 2.01%
Portfolio turnover rate ....................... 6% 16% 3% 14% 24% 11%
</TABLE>
<TABLE>
<CAPTION>
Chase Equity Income Fund
-------------------------------------
Investor Shares
-------------------------------------
1/1/00 Year 8/24/98*
Through Ended Through
6/30/00 12/31/99 12/31/98
------- -------- ---------
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $49.83 $46.23 $ 40.49
------ ------ -------
Income from investment operations:
Net investment income ........................ 0.07 0.20@ 0.06
Net gains or losses in investments (both
realized and unrealized) .................... 0.58 5.63 5.89
------ ------ -------
Total from investment operations ............ 0.65 5.83 5.95
------ ------ -------
Less distributions:
Dividends from net investment income ......... 0.07 0.23 0.07
Distributions from capital gains ............. -- 2.00 0.14
------ ------ -------
Total distributions ......................... 0.07 2.23 0.21
------ ------ -------
Net asset value, end of period ................ $50.41 $49.83 $46.23
====== ====== =======
Total return .................................. 1.32% 12.70% 14.70%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ 5 $ 4 $ 1
Ratios to average net assets:#
Expenses ..................................... $ 1.25% 1.24% 1.18%
Net investment income ........................ 0.30% 0.42% 0.57%
Expenses without waivers, reimbursements
and earnings credits ........................ 2.40% 3.33% 37.61%
Net investment income without waivers,
reimbursements and earnings credits ......... (0.85%) (1.67%) (35.86%)
Portfolio turnover rate ....................... 6% 16% 3%
</TABLE>
* Commencement of offering of class of shares.
# Short periods have been annualized.
@ Calculated based upon average shares outstanding.
See notes to financial statements.
75
<PAGE>
------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited)
------------------------------------------------------------
FINANCIAL HIGHLIGHTS (unaudited)
<TABLE>
<CAPTION>
Chase Small Capitalization Fund
------------------------------------------------------------
Premier Shares
------------------------------------------------------------
1/1/00 For the Years Ended December 31,
Through -------------------------------------------------
6/30/00 1999 1998 1997 1996 1995
--------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $22.60 $19.96 $21.78 $17.55 $13.41 $10.23
------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income ........................ (0.02)@ (0.02)@ (0.01) 0.02 0.01 0.05
Net gains or losses in investments (both
realized and unrealized) .................... 2.70 2.66 (0.46) 4.21 4.13 3.13
------ ------ ------ ------ ------ ------
Total from investment operations ............ 2.68 2.64 (0.47) 4.23 4.14 3.18
------ ------ ------ ------ ------ ------
Less distributions:
Dividends from capital gains ................. -- -- 0.71 -- -- --
In excess of net realized gain on investment -- -- 0.64 -- -- --
------ ------ ------ ------ ------ ------
Total distributions ......................... -- -- 1.35 -- -- --
------ ------ ------ ------ ------ ------
Net asset value, end of period ................ $25.28 $22.60 $19.96 $21.78 $17.55 $13.41
====== ====== ====== ====== ====== ======
Total return .................................. 11.86% 13.23% (1.83%) 24.08% 30.88% 31.14%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ 110 $ 93 $ 65 $ 40 $ 21 $ 13
Ratios to average net assets:#
Expenses ..................................... 1.00% 1.00% 1.00% 1.00% 1.22% 1.35%
Net investment income ........................ (0.17%) (0.13%) (0.03%) 0.13% 0.04% 0.46%
Expenses without waivers and
reimbursements .............................. 1.13% 1.21% 1.26% 1.40% 1.37% 1.50%
Net investment income without waivers
and reimbursements .......................... (0.30%) (0.34%) (0.29%) (0.27%) (0.11%) 0.31%
Portfolio turnover rate ....................... 32% 60% 45% 43% 68% 89%
</TABLE>
<TABLE>
<CAPTION>
Chase Small Capitalization Fund
-------------------------------------
Investor Shares
-------------------------------------
1/1/00 Year 8/12/98*
Through Ended Through
6/30/00 12/31/99 12/31/98
------- -------- ---------
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $22.51 $19.94 $ 19.86
------ ------ -------
Income from investment operations:
Net investment income ........................ (0.04)@ (0.08)@ (0.01)
Net gains or losses in investments (both
realized and unrealized) .................... 2.67 2.65 1.44
------ ------ -------
Total from investment operations ............ 2.63 2.57 1.43
------ ------ -------
Less distributions:
Dividends from capital gains ................. -- -- 0.71
In excess of net realized gain on investment -- -- 0.64
------ ------ -------
Total distributions ......................... -- -- 1.35
------ ------ -------
Net asset value, end of period ................ $25.14 $22.51 $ 19.94
====== ====== =======
Total return .................................. 11.68% 12.89% 7.56%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ 4 $ 1 $ 1
Ratios to average net assets:#
Expenses ..................................... 1.24% 1.24% 1.24%
Net investment income ........................ (0.38%) (0.37%) ( 0.18%)
Expenses without waivers and
reimbursements .............................. 2.89% 6.02% 74.81%
Net investment income without waivers
and reimbursements .......................... (2.03%) (5.15%) (73.75%)
Portfolio turnover rate ....................... 32% 60% 45%
</TABLE>
* Commencement of offering of class of shares.
# Short periods have been annualized.
@ Calculated based upon average shares outstanding.
See notes to financial statements.
76
<PAGE>
------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited)
------------------------------------------------------------
FINANCIAL HIGHLIGHTS (unaudited)
<TABLE>
<CAPTION>
Chase Core Equity Fund
------------------------------------------------------------
Premier Shares
------------------------------------------------------------
1/1/00 For the Years Ended December 31,
Through -------------------------------------------------
6/30/00 1999 1998 1997 1996 1995
--------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $32.24 $26.52 $21.25 $15.94 $13.01 $10.36
------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income ........................ (0.01)@ 0.04@ 0.09 0.14 0.16 0.17
Net gains or losses in investments (both
realized and unrealized) .................... 0.31 6.27 6.44 5.17 2.77 2.48
------ ------ ------ ------ ------ ------
Total from investment operations ............ 0.30 6.31 6.53 5.31 2.93 2.65
------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income ......... -- 0.04 0.09 -- -- --
Distributions from capital gains ............. -- 0.55 1.17 -- -- --
------ ------ ------ ------ ------ ------
Total distributions ......................... -- 0.59 1.26 -- -- --
------ ------ ------ ------ ------ ------
Net asset value, end of period ................ $32.54 $32.24 $26.52 $21.25 $15.94 $13.01
====== ====== ====== ====== ====== ======
Total return .................................. 0.93% 23.89% 30.95% 33.33% 22.54% 25.53%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ 193 $ 181 $ 89 $ 51 $ 29 $ 24
Ratios to average net assets:#
Expenses ..................................... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Net investment income ........................ (0.05%) 0.13% 0.39% 0.74% 1.10% 1.44%
Expenses without waivers and
reimbursements .............................. 1.06% 1.11% 1.18% 1.20% 1.14% 1.17%
Net investment income without waivers
and reimbursements .......................... 0.11% 0.02% 0.21% 0.54% 0.96% 1.27%
Portfolio turnover rate ....................... -- 11%- 32% 24% 29% 133%
</TABLE>
<TABLE>
<CAPTION>
Chase Core Equity Fund
-------------------------------------
Investor Shares
-------------------------------------
1/1/00 Year 9/10/98*
Through Ended Through
6/30/00 12/31/99 12/31/98
------- -------- ---------
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $32.19 $26.52 $ 21.49
------ ------ -------
Income from investment operations:
Net investment income ........................ (0.05)@ (0.05)@ --
Net gains or losses in investments (both
realized and unrealized) .................... 0.31 6.28 6.22
------ ------ -------
Total from investment operations ............ 0.26 6.23 6.22
------ ------ -------
Less distributions:
Dividends from net investment income ......... -- 0.01 0.02
Distributions from capital gains ............. -- 0.55 1.17
------ ------ -------
Total distributions ......................... -- 0.56 1.19
------ ------ -------
Net asset value, end of period ................ $32.45 $32.19 $ 26.52
====== ====== =======
Total return .................................. 0.81% 23.59% 29.08%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ 9 $ 6 $ 1
Ratios to average net assets:#
Expenses ..................................... 1.25% 1.24% 1.23%
Net investment income ........................ (0.30%) (0.13%) (0.03%)
Expenses without waivers and
reimbursements .............................. 2.15% 3.02% 140.46%
Net investment income without waivers
and reimbursements .......................... (1.20%) (1.89%) (139.26%)
Portfolio turnover rate ....................... -- 11%- 32%
</TABLE>
* Commencement of offering of class of shares.
# Short periods have been annualized.
- Portfolio turnover reflects the period January 1, 1999 to August 11, 1999.
After August 11, 1999, all the Fund's investable assets were invested in CEP
see Note 1), and the portfolio turnover rate is disclosed at the Portfolio
level.
@ Calculated based upon average shares outstanding.
See notes to financial statements.
77
<PAGE>
------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS (unaudited)
------------------------------------------------------------
FINANCIAL HIGHLIGHTS (unaudited)
<TABLE>
<CAPTION>
Chase Equity Growth Fund
------------------------------------------------------------
Premier Shares
------------------------------------------------------------
1/1/00 For the Years Ended December 31,
Through -------------------------------------------------
6/30/00 1999 1998 1997 1996 1995
--------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $68.09 $52.36 $38.36 $27.95 $23.20 $18.44
------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income ........................ (0.13)@ (0.14)@ 0.03 0.07 0.10 0.17
Net gains or losses in investments (both
realized and unrealized) .................... 1.43 16.78 15.78 10.34 4.65 4.59
------ ------ ------ ------ ------ ------
Total from investment operations ............ 1.30 16.64 15.81 10.41 4.75 4.76
------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income ......... -- -- 0.03 -- -- --
Distributions from capital gains ............. -- 0.91 1.78 -- -- --
------ ------ ------ ------ ------ ------
Total distributions ......................... -- 0.91 1.81 -- -- --
------ ------ ------ ------ ------ ------
Net asset value, end of period ................ $69.39 $68.09 $52.36 $38.36 $27.95 $23.20
====== ====== ====== ====== ====== ======
Total return .................................. 1.91% 31.85% 41.38% 37.20% 20.52% 25.78%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ 365 $ 320 $ 179 $ 74 $ 57 $ 46
Ratios to average net assets:#
Expenses ..................................... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Net investment income ........................ (0.38%) (0.24%) 0.05% 0.20% 0.41% 0.78%
Expenses without waivers and
reimbursements .............................. 1.02% 1.03% 1.09% 1.11% 1.08% 1.10%
Net investment income without waivers
and reimbursements .......................... (0.40%) (0.27%) (0.04%) 0.09% 0.33% 0.68%
Portfolio turnover rate ....................... -- 15%- 35% 35% 62% 99%
</TABLE>
<TABLE>
<CAPTION>
Chase Equity Growth Fund
-------------------------------------
Investor Shares
-------------------------------------
1/1/00 Year 8/13/98*
Through Ended Through
6/30/00 12/31/99 12/31/98
------- -------- ---------
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period .......... $67.85 $52.30 $45.57
------ ------ ------
Income from investment operations:
Net investment income ........................ (0.21)@ (0.29)@ (0.02)
Net gains or losses in investments (both
realized and unrealized) .................... 1.41 16.75 8.53
------ ------ ------
Total from investment operations ............ 1.20 16.46 8.51
------ ------ ------
Less distributions:
Dividends from net investment income ......... -- -- --
Distributions from capital gains ............. -- 0.91 1.78
------ ------ ------
Total distributions ......................... -- 0.91 1.78
------ ------ ------
Net asset value, end of period ................ $69.05 $67.85 $52.30
====== ====== ======
Total return .................................. 1.77% 31.54% 18.80%
Ratios/supplemental data:
Net assets, end of period (millions) ......... $ 32 $ 15 $ 1
Ratios to average net assets:#
Expenses ..................................... 1.25% 1.24% 1.25%
Net investment income ........................ ( 0.64%) (0.48%) (0.19%)
Expenses without waivers and
reimbursements .............................. 1.81% 2.34% 5.88%
Net investment income without waivers
and reimbursements .......................... (1.20%) (1.58%) 4.82%
Portfolio turnover rate ....................... -- 15%- 35%
</TABLE>
* Commencement of offering of class of shares.
# Short periods have been annualized.
- Portfolio turnover reflects the period January 1, 1999 to August 11, 1999.
After August 11, 1999, all the Fund's investable assets were invested in EGP
(see Note 1), and the portfolio turnover rate is disclosed at the Portfolio
level.
@ Calculated based upon average shares outstanding.
See notes to financial statements.
78
<PAGE>
--------------------------------------------------------------------------------
CORE EQUITY PORTFOLIO
Portfolio of Investments
--------------------------------------------------------------------------------
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<S> <C> <C>
Shares Issuer Value
--------------------------------------------------------------------------------
Long-Term Investments -- 96.9%
--------------------------------------------------------------------------------
Common Stock -- 96.9%
---------------------
Advertising -- 0.5%
16 Omnicom Group $1,421
Airlines -- 1.0%
144 Southwest Airlines, Inc. 2,727
Automotive -- 0.9%
33 Ford Motor Co. 1,437
14 General Motors Corp. 794
4 Visteon Corp. * 53
------
2,284
Banking -- 1.5%
32 Bank of America Corp. 1,397
56 Bank of New York Co., Inc. 2,615
------
4,012
Biotechnology -- 1.1%
42 Amgen, Inc. * 2,915
Computer Networks -- 3.2%
134 Cisco Systems, Inc. * 8,492
Computer Software -- 5.6%
105 Microsoft Corp. * 8,438
57 Oracle Corp. * 4,787
26 Symantec Corp. * 1,400
------
14,625
Computers/Computer Hardware -- 6.7%
69 Dell Computer Corp. * 3,389
66 EMC Corp. * 5,086
22 Hewlett-Packard Co. 2,691
31 International Business Machines Corp. 3,410
34 Sun Microsystems, Inc. * 3,087
------
17,663
Consumer Products -- 3.5%
47 Avon Products, Inc. 2,096
55 Colgate-Palmolive Co. 3,277
34 Gillette Co. 1,170
47 Philip Morris Companies, Inc. 1,240
25 Procter & Gamble Co. 1,433
------
9,216
Diversified -- 5.5%
224 General Electric Co. 11,862
56 Tyco International LTD (Bermuda) 2,660
------
14,522
Electronics/Electrical Equipment -- 2.9%
8 Agilent Technologies, Inc. * 604
23 Molex, Inc. 1,092
31 Sanmina Corp. * 2,676
78 Solectron Corp. * 3,273
------
7,645
Financial Services -- 8.6%
120 American Express Co. 6,244
98 Charles Schwab Corp. 3,310
97 Citigroup, Inc. 5,852
31 Merrill Lynch & Co., Inc. 3,554
44 Morgan Stanley Dean Witter & Co. 3,621
------
22,581
</TABLE>
See notes to financial statements.
79
<PAGE>
CORE EQUITY PORTFOLIO
Portfolio of Investments (Continued)
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<S> <C> <C>
Shares Issuer Value
--------------------------------------------------------------------------------
Long-Term Investments -- Continued
--------------------------------------------------------------------------------
Food/Beverage Products -- 3.4%
31 Anheuser-Busch Companies, Inc. $ 2,340
49 Coca-Cola Co. 2,806
86 PepsiCo, Inc. 3,799
-------
8,945
Health Care/Health Care Services -- 2.1%
46 Guidant Corp. * 2,262
63 Medtronic, Inc. 3,126
-------
5,388
Insurance -- 3.0%
67 American International Group, Inc. 7,842
Internet Services/Software -- 1.4%
44 America Online, Inc. * 2,318
10 Yahoo! Inc. * 1,270
-------
3,588
Machinery & Engineering Equipment -- 0.4%
27 Dover Corp. 1,083
Metals/Mining -- 0.8%
68 Alcoa, Inc. 1,982
Multi-Media -- 2.5%
90 The Walt Disney Co. 3,503
41 Time Warner, Inc. 3,152
-------
6,655
Oil & Gas -- 5.6%
29 BJ Services Co. * 1,816
21 Chevron Corp. 1,768
101 Exxon Mobil Corp. 7,921
51 Royal Dutch Petroleum Co., N.Y. Registered Shares
(Netherlands) 3,109
-------
14,614
Pharmaceuticals -- 7.6%
28 American Home Products Corp. 1,622
40 Bristol-Myers Squibb Co. 2,352
24 Eli Lilly & Co. 2,427
25 Johnson & Johnson 2,544
47 Merck & Co., Inc. 3,565
156 Pfizer, Inc. 7,477
-------
19,987
Retailing -- 7.6%
35 Albertson's, Inc. 1,154
47 Best Buy Co., Inc. * 2,952
61 Home Depot, Inc. 3,044
35 Target Corp. 2,036
131 Wal-Mart Stores, Inc. 7,555
97 Walgreen Co. 3,114
-------
19,855
Semi-Conductors -- 7.9%
41 Altera Corp. * 4,149
42 Applied Materials, Inc. * 3,829
71 Intel Corp. 9,529
48 Texas Instruments, Inc. 3,276
-------
20,783
</TABLE>
See notes to financial statements.
80
<PAGE>
CORE EQUITY PORTFOLIO
Portfolio of Investments (Continued)
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<S> <C> <C>
Shares Issuer Value
--------------------------------------------------------------------------------
Long-Term Investments -- Continued
--------------------------------------------------------------------------------
Telecommunications -- 5.5%
34 AT&T Corp. $ 1,080
52 BellSouth Corp. 2,219
31 GTE Corp. 1,938
71 SBC Communications, Inc. 3,053
43 Sprint Corp. (FON Group) 2,206
89 WorldCom, Inc. * 4,066
--------
14,562
Telecommunications Equipment -- 5.3%
61 ADC Telecommunications, Inc. * 5,149
10 JDS Uniphase Corp. * 1,247
53 Lucent Technologies, Inc. 3,157
63 Nortel Networks Corp., (Canada) 4,266
--------
13,819
Utilities -- 2.8%
48 AES Corp. * 2,176
21 Duke Energy Corp. 1,206
61 Enron Corp. 3,922
--------
7,304
--------------------------------------------------------------------------------
Total Long-Term Investments 254,510
(Cost $193,218)
--------------------------------------------------------------------------------
Short-Term Investment -- 3.1%
--------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
Principal
Amount
Repurchase Agreement -- 3.1%
----------------------------
$8,261 Greenwich Capital Markets, Inc., in a joint trading
account at 6.80%, due 07/03/00, (Dated 06/30/00,
Proceeds $8,266, Secured by GNMA & FHLMC, $8,479,
7.00% through 7.50%, due 11/15/21 through
07/16/24; Market Value $8,427) 8,261
(Cost $8,261)
--------------------------------------------------------------------------------
Total Investments -- 100.0% $262,771
(Cost $201,479)
--------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
81
<PAGE>
--------------------------------------------------------------------------------
EQUITY GROWTH PORTFOLIO
Portfolio of Investments
--------------------------------------------------------------------------------
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<S> <C> <C>
Shares Issuer Value
--------------------------------------------------------------------------------
Long-Term Investments -- 97.7%
--------------------------------------------------------------------------------
Common Stock -- 97.7%
---------------------
Biotechnology -- 5.8%
226 Amgen, Inc. * $15,907
85 Biogen, Inc. * 5,486
68 MedImmune, Inc. * 5,051
-------
26,444
Computer Networks -- 5.5%
400 Cisco Systems, Inc. * 25,435
Computer Software -- 7.0%
205 Microsoft Corp. * 16,392
186 Oracle Corp. * 15,669
-------
32,061
Computers/Computer Hardware -- 11.1%
164 Dell Computer Corp. * 8,068
301 EMC Corp. * 23,147
95 International Business Machines Corp. 10,433
103 Sun Microsystems, Inc. * 9,394
-------
51,042
Consumer Products -- 1.6%
114 Gillette Co. 3,987
58 Procter & Gamble Co. 3,316
-------
7,303
Diversified -- 6.1%
477 General Electric Co. 25,292
60 Tyco International LTD (Bermuda) 2,824
-------
28,116
Electronics/Electrical Equipment -- 1.9%
92 Molex, Inc. 4,413
76 Symbol Technologies, Inc. 4,109
-------
8,522
Financial Services -- 6.0%
337 Charles Schwab Corp. 11,322
77 Merrill Lynch & Co., Inc. 8,907
86 Morgan Stanley Dean Witter & Co. 7,197
-------
27,426
Food/Beverage Products -- 2.5%
94 Coca-Cola Co. 5,383
141 PepsiCo, Inc. 6,269
-------
11,652
Health Care/Health Care Services -- 1.4%
35 Medtronic, Inc. 1,748
54 UnitedHealth Group Inc. 4,614
-------
6,362
Multi-Media -- 3.7%
260 The Walt Disney Co. 10,072
90 Time Warner, Inc. 6,823
-------
16,895
Pharmaceuticals -- 10.8%
59 Bristol-Myers Squibb Co. 3,429
74 Eli Lilly & Co. 7,426
54 Johnson & Johnson 5,509
</TABLE>
See notes to financial statements.
82
<PAGE>
EQUITY GROWTH PORTFOLIO
Portfolio of Investments (Continued)
As of June 30, 2000 (unaudited)
(Amounts in Thousands)
<TABLE>
<S> <C> <C>
Shares Issuer Value
---------------------------------------------------------------------------
Long-Term Investments -- Continued
---------------------------------------------------------------------------
Pharmaceuticals -- Continued
105 Merck & Co., Inc. $ 8,017
437 Pfizer, Inc. 20,993
83 Pharmacia Corp. 4,275
-------
49,649
Restaurants/Food Services -- 1.2%
191 Tricon Global Restaurants, Inc. * 5,394
Retailing --7.3%
133 Best Buy Co., Inc. * 8,406
178 Home Depot, Inc. 8,883
283 Wal-Mart Stores, Inc. 16,307
-------
33,596
Semi-Conductors -- 17.9%
232 Applied Materials, Inc. * 21,025
211 Intel Corp. 28,238
143 KLA-Tencor Corp. * 8,372
310 Novellus Systems, Inc. * 17,556
105 Texas Instruments, Inc. 7,185
-------
82,376
Telecommunications -- 1.5%
77 Nextel Communications, Inc., Class A * 4,726
39 Sprint Corp. (FON Group) 2,006
-------
6,732
Telecommunications Equipment -- 6.4%
38 ADC Telecommunications, Inc. * 3,204
47 JDS Uniphase Corp. * 5,682
148 Lucent Technologies, Inc. 8,745
170 Nortel Networks Corp. (Canada) 11,630
-------
29,261
---------------------------------------------------------------------------
Total Long-Term Investments 448,266
(Cost $299,713)
---------------------------------------------------------------------------
Short-Term Investment -- 2.3%
---------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
Principal
Amount
Repurchase Agreement -- 2.3%
----------------------------
$10,602 Greenwich Capital Markets, Inc., in a joint trading
account at 6.80%, due 07/03/00, (Dated 06/30/00,
Proceeds $10,608, Secured by GNMA, $10,695, 7.50%,
due 07/16/24; Market Value $10,817) 10,602
(Cost $10,602)
---------------------------------------------------------------------------
Total Investments -- 100.0% $458,868
(Cost $310,315)
---------------------------------------------------------------------------
</TABLE>
INDEX:
* -- Non-income producing security.
FHLMC -- Federal Home Loan Mortgage Corporation.
GNMA -- Government National Mortgage Association.
See notes to financial statements.
83
<PAGE>
--------------------------------------------------------------------------------
CORE EQUITY AND EQUITY GROWTH PORTFOLIOS
Statement of Assets and Liabilities As of June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
(Amounts in Thousands)
<TABLE>
<S> <C> <C>
Equity
Core Equity Growth
Portfolio Portfolio
ASSETS:
Investment securities, at value (Note 1) ......... $262,771 $458,868
Cash ............................................. 1 1
Receivables:
Interest and dividends .......................... 103 113
-----------------------------------------------------------------------------
Total Assets .................................. 262,875 458,982
-----------------------------------------------------------------------------
LIABILITIES:
Accrued liabilities: (Note 2)
Investment advisory fees ........................ 147 265
Administration fees ............................. 10 18
Other ........................................... 56 47
-----------------------------------------------------------------------------
Total Liabilities ............................. 213 330
-----------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
BENEFICIAL INTERESTS .............................. $262,662 $458,652
-----------------------------------------------------------------------------
Cost of investments .............................. $201,479 $310,315
</TABLE>
See notes to financial statements.
84
<PAGE>
--------------------------------------------------------------------------------
CORE EQUITY AND EQUITY GROWTH PORTFOLIOS
Statement of Operations For the six months ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
(Amounts in Thousands)
<TABLE>
<S> <C> <C>
Equity
Core Equity Growth
Portfolio Portfolio
INVESTMENT INCOME:
Dividend ..................................................... $ 789 $ 730
Interest ..................................................... 325 545
Foreign taxes withheld ....................................... (4) (1)
-------------------------------------------------------------------------------------------------
Total investment income ................................... 1,110 1,274
-------------------------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees ..................................... 879 1,544
Administration fees .......................................... 59 103
Custody and accounting fees .................................. 41 43
Professional fees ............................................ 28 29
Trustees' fees and expenses .................................. 3 4
Other ........................................................ 13 16
-------------------------------------------------------------------------------------------------
Total expenses ............................................ 1,023 1,739
Less amounts waived (Note 2A) ................................ 71 51
-------------------------------------------------------------------------------------------------
Net expenses ............................................... 952 1,688
-------------------------------------------------------------------------------------------------
Net investment income (loss) .............................. 158 (414)
-------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions ................. 3,089 5,683
Change in net unrealized appreciation of investments ......... 628 3,222
-------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments .............. 3,717 8,905
-------------------------------------------------------------------------------------------------
Net increase in net assets from operations ................... $3,875 $8,491
</TABLE>
See notes to financial statements.
85
<PAGE>
--------------------------------------------------------------------------------
CORE EQUITY AND EQUITY GROWTH PORTFOLIOS
Statement of Changes in Net Assets For the periods indicated (unaudited)
--------------------------------------------------------------------------------
(Amounts in Thousands)
<TABLE>
<S> <C> <C> <C> <C>
Core Equity Equity Growth
Portfolio Portfolio
01/01/00 08/12/99* 01/01/00 08/12/99*
Through Through Through Through
06/30/00 12/31/99 06/30/00 12/31/99
-----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS:
Net investment income (loss) ........... $ 158 $ 173 $ (414) $ (85)
Net realized gain (loss) on
investment transactions ................ 3,089 2,121 5,683 (283)
Change in net unrealized
appreciation of investments ............ 628 23,715 3,222 67,192
---------------------------------------------------------------------------------------------------------------------
Increase in net assets from
operations ........................... 3,875 26,009 8,491 66,824
---------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS (Note 1):
Contributions .......................... 84,917 207,886 147,474 332,120
Withdrawals ............................ (39,459) (20,566) (61,494) (34,763)
---------------------------------------------------------------------------------------------------------------------
Net increase from transactions
in investors' beneficial interests 45,458 187,320 85,980 297,357
---------------------------------------------------------------------------------------------------------------------
Total increase in net assets ......... 49,333 213,329 94,471 364,181
NET ASSETS:
Beginning of period .................... 213,329 -- 364,181 --
---------------------------------------------------------------------------------------------------------------------
End of period .......................... $ 262,662 $ 213,329 $ 458,652 $ 364,181
</TABLE>
* Commencement of operations.
See notes to financial statements.
86
<PAGE>
--------------------------------------------------------------------------------
PORTFOLIOS
Notes to Financial Statements (unaudited)
--------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Mutual Fund Master Investment Trust (the "Trust") was organized as a
Massachusetts Business Trust, and is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company. Core
Equity Portfolio ("CEP") and Equity Growth Portfolio ("EGP"), collectively the
"Portfolios," are separate series of the Trust. The declaration of trust
permits the Trustees to issue beneficial interests in the Portfolios.
On August 12, 1999, the Chase Core Equity Fund and Chase Equity Growth Fund
(separate portfolios of Mutual Fund Investment Trust) contributed 100% of their
investable net assets ($156,409,317 and $240,616,354, respectively) to the
newly created CEP and EGP, in a tax-free exchange.
The following is a summary of significant accounting policies followed by the
Portfolios:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates.
A. Valuation of investments -- Equity securities, purchased options and
futures are valued at the last sale price on the exchange on which they are
primarily traded, including the NASDAQ National Market. Securities for
which sale prices are not available and other over-the-counter securities
are valued at the last quoted bid price. Bonds and other fixed income
securities (other than short-term obligations), including listed issues,
are valued on the basis of valuations supplied by pricing services or by
matrix pricing systems of a major dealer in bonds. Short-term debt
securities with 61 days or more to maturity at time of purchase are valued,
through the 61st day prior to maturity, at market value based on quotations
obtained from market makers or other appropriate sources; thereafter, the
value on the 61st day is amortized on a straight-line basis over the
remaining number of days to maturity. Short-term investments with 60 days
or less to maturity at time of purchase are valued at amortized cost, which
approximates market. Portfolio securities for which there are no such
quotations or valuations are valued at fair value as determined in good
faith by or at the direction of the Trustees.
B. Repurchase agreements -- Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Portfolios may transfer uninvested
cash balances into one or more joint trading accounts for the purpose of
investing in repurchase agreements. It is the Portfolios' policy that
repurchase agreements are fully collateralized by U.S. Treasury and
Government Agency securities. All collateral is held in one or more joint
trading accounts by the Portfolios' custodian bank, subcustodian, or a bank
with which the custodian bank has entered into a subcustodian agreement, or
is segregated in the Federal Reserve Book Entry System. In connection with
transactions in repurchase agreements, if the seller defaults and the value
of the collateral declines, or if the seller enters an insolvency
proceeding, realization of the collateral by the Trusts may be delayed or
limited.
87
<PAGE>
PORTFOLIOS
Notes to Financial Statements (unaudited) (continued)
C. Security transactions and investment income -- Investment transactions
are accounted for on the trade date (the date the order to buy or sell is
executed). Securities gains and losses are calculated on the identified
cost basis. Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date.
D. Federal income taxes -- The Portfolios intend to continue to qualify as
partnerships and therefore net investment income and net realized gains are
taxed to the partners. Accordingly, no tax provisions are recorded by the
Portfolios. The investors in the Portfolios must take into account their
proportionate share of the Portfolios' income, gains, losses, deductions,
credits and tax preference items in computing their federal income tax
liability, without regard to whether they have received any cash
distributions from the Portfolio. The Portfolios do not intend to
distribute to investors their net investment income or their net realized
gains, if any. It is intended that the Portfolios will be managed in such a
way that investors in the Portfolio will be able to satisfy the
requirements of subchapter M of the Internal Revenue Code to be taxed as
regulated investment companies.
E. Expenses -- Expenses directly attributable to a Portfolio are charged to
that Portfolio; other expenses are allocated on another reasonable basis.
2. Fees and Other Transactions with Affiliates
A. Investment advisory fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank ("Chase" or the "Advisor") acts as the
Investment Advisor to the Portfolios. Chase is a direct wholly-owned
subsidiary of The Chase Manhattan Corporation. As Investment Advisor, Chase
supervises the investments of the Portfolios and for such services is paid
a fee. The fee is computed daily and paid monthly at an annual rate equal
to 0.75% of the Portfolios' average daily net assets.
Chase Bank of Texas N.A. ("Chase Texas"), a registered investment advisor,
is the sub-investment advisor to each of the Portfolios pursuant to a
Sub-Investment Advisory Agreement between Chase Texas and Chase. Chase
Texas is a wholly-owned subsidiary of Chase and is entitled to receive a
fee, payable by Chase from its advisory fee, at an annual rate equal to
0.375% of each Portfolio's average daily net assets.
For the six months ended June 30, 2000, the Advisor voluntarily waived
advisory fees of $71,210 and $51,043 for CEP and EGP, respectively.
B. Administration fee -- Pursuant to an Administration Agreement, Chase
(the "Administrator") provides certain administration services to the
Portfolios. For these services and facilities, the Administrator receives
from each Portfolio a fee computed at the annual rate equal to 0.05% of the
respective Portfolio's average daily net assets.
88
<PAGE>
PORTFOLIOS
Notes to Financial Statements (unaudited) (continued)
3. Investment Transactions
For the six months ended June 30, 2000, purchases and sales of investments
(excluding short-term investments) were as follows (in thousands):
<TABLE>
<S> <C> <C>
CEP EGP
--------------------------------------------------------------------------------
Purchases (excluding U.S. Government).......... $88,762 $205,515
Sales (excluding U.S. Government) .............. 41,085 112,272
</TABLE>
The portfolio turnover rates of CEP and EGP for the six months ended June 30,
2000, were 18% and 28% respectively.
4. Federal Income Tax Matters
For Federal income tax purposes, the cost and unrealized appreciation
(depreciation) in value of the investment securities at June 30, 2000, are as
follows (in thousands):
<TABLE>
<S> <C> <C>
CEP EGP
--------------------------------------------------------------------------------
Aggregate cost ......................... $201,479 $310,315
-------- --------
Gross unrealized appreciation.......... $ 65,096 $156,084
Gross unrealized depreciation.......... (3,804) (7,531)
-------- --------
Net unrealized appreciation ............ $ 61,292 $148,553
======== ========
</TABLE>
5. Concentrations
At June 30, 2000, CEP and EGP invested 33.0% and 49.8%, respectively, of their
portfolios in securities issued by technology sector companies, such as
computer hardware and software companies, internet connectivity providers, and
telecommunications equipment manufacturers. Valuations of companies in the
technology sector are typically subject to greater volatility than other
sectors.
89
<PAGE>
--------------------------------------------------------------------------------
CHASE FUNDS SEMI-ANNUAL REPORT
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Investment Adviser, Administrator, This report is submitted for the general
Shareholder and Fund Servicing information of the shareholders of
Agent and Custodian the Funds. It is not authorized for
Chase Funds Service Center distribution to prospective investors
210 West 10th Street in the Funds unless preceded or
Kansas City, MO 64105 accompanied by a prospectus.
Legal Counsel The financial information in this report
Simpson Thacher & Bartlett has been taken from the books and
425 Lexington Avenue records of the Funds without examina-
New York, NY 10017 tion by independent accountants, who
express no opinion thereto.
Independent Accountants
PricewaterhouseCoopers LLP To obtain a prospectus for any
1177 Avenue of the Americas of the Chase Funds, call
New York, NY 10036 1-800-5-CHASE-0. The prospectus
contains more complete information,
Chase Funds are distributed by Chase including charges and ongoing expenses.
Fund Distributors, Inc., which is Please read it carefully before you
unaffiliated with The Chase Manhattan invest or send money.
Bank. Chase and its respective affiliates
receive compensation from Chase Funds
for providing investment advisory and
other services.
</TABLE>
(C)2000 The Chase Manhattan Corporation. All Rights Reserved. August 2000
[CHASE FUNDS(sm) LOGO]
Chase Funds Fulfillment Center
393 Manley Street
West Bridgewater, MA 02379-1039
