DECEMBER 31, 1999
Chase Funds
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
FUND
CORE EQUITY FUND
EQUITY GROWTH FUND
(C-465-01618) ANCF-2-12-99
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------
Contents
- ----------------------------------------------------------
<S> <C>
Chairman's Letter 1
- ----------------------------------------------------------
Chase Money Market Fund 2
Fund Commentary
- ----------------------------------------------------------
Chase Short-Intermediate Term
U.S. Government Securities Fund 5
Fund Commentary
- ----------------------------------------------------------
Chase Intermediate Term Bond Fund 8
Fund Commentary
- ----------------------------------------------------------
Chase U.S. Government Securities Fund 11
Fund Commentary
- ----------------------------------------------------------
Chase Income Fund 14
Fund Commentary
- ----------------------------------------------------------
Chase Balanced Fund 17
Fund Commentary
- ----------------------------------------------------------
Chase Equity Income Fund 20
Fund Commentary
- ----------------------------------------------------------
Chase Small Capitalization Fund 23
Fund Commentary
- ----------------------------------------------------------
Chase Core Equity Fund 26
Fund Commentary
- ----------------------------------------------------------
Chase Equity Growth Fund 29
Fund Commentary
- ----------------------------------------------------------
Portfolios of Investments 32
- ----------------------------------------------------------
Fund Financial Statements 52
- ----------------------------------------------------------
Portfolio Financial Statements 83
- ----------------------------------------------------------
</TABLE>
Highlights
o Bond markets struggled as the United States economy continued to grow
sharply during the reporting year. Gross Domestic Product growth in the
United States in 1999 was 4.2%.
o Stocks ended the year on a strong note with technology issues, IPOs and
large cap growth stocks leading the upward advance.
o Inflation, while still well under control, inched up during the reporting
year and the Federal Reserve began raising interest rates in June.
NOT FDIC INSURED May lose value / No bank guarantee
<PAGE>
- --------------------------------------------------------------------------------
CHASE FUNDS
- --------------------------------------------------------------------------------
Chairman's Letter
January 20, 2000
Dear Fellow Shareholders:
We are pleased to present this annual report for Chase Funds for the year ended
December 31, 1999. In providing you with this information, we seek to assist you
in fully understanding how your fund performed and the strategies your fund
managers pursued within the context of the overall economic and market
environment.
Continued Strong US Economic Growth Tests "New Paradigm"
Throughout the 1990s, the wonderful combination of strong economic growth,
falling unemployment and low inflation has led to a growing belief in a "new
paradigm." Under this theory, productivity and technological gains will allow
the economy to grow at faster levels without sparking an inflationary spiral
that causes the Federal Reserve to raise interest rates in an effort to cool the
economy. Prior to the arrival of the "new paradigm," it was thought that GDP
growth much above a 2.5% annual rate would inevitably become inflationary.
However, the sizzling US economy began testing the upper limits of the "new
paradigm" equation during the reporting year as Gross Domestic Product in 1999
grew by 4.2%. Although inflation remained relatively subdued, it did move higher
over the reporting year and this, when combined with the very high growth in the
US and the resumption of growth overseas, led to rising interest rates and a
generally rough road to hoe for the bond market.
Fed Shifts Policy in Early 1999
Early in 1999, it became apparent that a global economic recovery was underway.
The global recovery, combined with 6% annual growth in the US in the 4th quarter
of 1998 and record-low unemployment, led to bond market fears that the Fed would
shift to a policy of raising short-term interest rates. This generally negative
sentiment continued for the rest of the year as the Fed did indeed begin
tightening, first on June 30, 1999 and then again on August 24 and November 16.
In the view of many market participants, the Fed would have acted again in
December were it not for Y2K concerns. Moving into 2000, the question among
market participants is not whether the Fed will continue to raise rates, but
rather by how much and for how long.
Your portfolio management team rose to the occasion of 1999's challenging
environment. While it's impossible to predict what markets will do, you can
surely expect that all of us at Chase Funds will continue to do our best to
deliver solid investments and help you reach your financial goals. We appreciate
your continued trust and support.
Sincerely yours,
/s/ Sarah E. Jones
Sarah E. Jones
Chairman
1
<PAGE>
- --------------------------------------------------------------------------------
CHASE MONEY MARKET FUND
As of December 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
How the Fund Performed
Chase Money Market Fund had a total return of 4.89% (Premier Shares) for the
year ended December 31, 1999.
How the Fund Was Managed
The Fund began the with an average maturity slightly below that of the index
and, as interest rates climbed in the first half of the year, the management
team increased average maturity to a roughly neutral position to take advantage
of higher-yielding paper. Given the Fund's strong focus on quality, this longer
maturity was achieved by purchasing high-grade corporate notes.
In the third quarter, the management team took advantage of the wide spread
between fixed and floating rate notes by allocating an additional 20% of assets
to floating rate notes, bringing total exposure to these securities to 40%.
Although the Fund ended September with an average maturity longer than its
index, the high exposure to floating rate notes gave the portfolio an excellent
risk/reward profile. During the fourth quarter, the management team's decision
to shorten average maturity in light of the continued rise in interest rates
contributed positively to performance.
Where the Fund May Be Headed
Despite the U.S. economy's robust showing in recent months and a near-term
outlook that calls for potentially more of the same, the management team
believes that the economy will begin to slow as the year progresses. Given this
backdrop, the team intends to increase the Fund's average maturity in the coming
months to enhance income. As always, the focus will be on maintaining a
high-quality, diversified investment approach that seeks capital preservation
and attractive yields to shareholders.
2
<PAGE>
CHASE MONEY MARKET FUND
As of December 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[TABULAR REPRESENTATION OF PIE CHART]
<TABLE>
<S> <C>
Corporate Notes & Bonds (49.4%)
Commercial Paper (31.2%)
Certificates of Deposit (11.6%)
U.S. Government Agency Securities (3.2%)
Cash Equivalent and Short-Term Paper (2.9%)
State and Municipal Obligations (1.7%)
</TABLE>
3
<PAGE>
CHASE MONEY MARKET FUND
As of December 31, 1999 (Unaudited)
Maturity Schedule
<TABLE>
<S> <C>
1-14 days 27.03%
15-30 days 5.81%
31-60 days 32.94%
61-90 days 18.17%
91-180 days 10.77%
181-270 days 2.05%
270+ days 3.23%
</TABLE>
7-Day SEC Yield
<TABLE>
<S> <C>
Premier Shares 5.41%
Investor Shares 5.31%
</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 $1 million 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 11/9/98 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.
The Fund is AAAm rated by Standard and Poor's. This rating is historical and is
based upon the fund's credit quality, market exposure and management. It
signifies that the fund's safety is excellent and that it has a superior
capacity to maintain a $1.00 net asset value per share.
4
<PAGE>
- --------------------------------------------------------------------------------
CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND
As of December 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
How the Fund Performed
Chase Short-Intermediate Term U.S. Government Securities Fund had a total return
of .72% (Premier Shares) for the year ended December 31, 1999. This compares to
.64% for the Lipper Short-Intermediate US Government Funds Index and .49% for
the Lehman Intermediate Government Index.
How the Fund Was Managed
With interest rates rising throughout the year, 1999 was a difficult environment
for all types of US fixed income securities. Compounding the difficulties was
high issuance of non-Treasury "spread" sector securities as government agency
and corporate issuers sought to fund their debt before higher rates made it
unattractive.
In the first half of the year, the management team's strategy was to stay
relatively close to its index and capture yield where possible without taking on
excessive risk. After beginning the year with a neutral maturity structure, the
management team cut duration in February before becoming duration neutral in May
and remaining so until the end of June. The Fund maintained a slightly
overweight position in mortgage-backed securities in the first quarter, which
proved beneficial as "spread" sectors outperformed Treasuries. In the second
quarter, however, the Fund began to favor Treasuries over mortgages, which was
helpful to performance in June as the prices of mortgage-backed securities
slipped. In the third quarter, the Fund's exposure to federal agency securities
was increased significantly to take advantage of further widening in yield
spreads due to new issuance.
The Fund underwent a change of management in the fourth quarter. When the new
management team took over, the Fund had a longer-than-benchmark duration and was
underweight in mortgage backed securities versus its Lipper peer group. In an
effort to improve diversification, increase dividend yield to shareholders and
make the portfolio reflective of its interest rate views, the management team
took several steps. First, it allowed the Fund's duration (and hence its
sensitivity to changes in interest rates) to shorten dramatically, making an
especially significant strategic reduction in December. Next, the Fund's
exposure to short-term mortgages and government agencies was increased while
exposure to two-year Treasury bills was cut. Each of these moves proved
beneficial in the last two months of the year as interest rates rose sharply at
the short end of the yield curve and non-Treasury "spread" sectors outperformed.
Where the Fund May Be Headed
Moving forward, the management team believes that above-trend economic growth,
tight labor markets and increasing inflation will drive long-term rates higher
and cause the Federal Reserve to hike short-term rates. As such, it is expected
that the Fund will maintain a slightly short of benchmark duration and emphasize
government agency and premium (not pass-through) mortgage-backed securities,
which tend to outperform in a rising rate environment.
5
<PAGE>
CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND
As of December 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[TABULAR REPRESENTATION OF PIE CHART]
<TABLE>
<S> <C>
U.S. Government Agency Securities (47.7%)
U.S. Treasury Securities (36.4%)
Mortgage-Backed Pass Through Securities (15.9%)
</TABLE>
6
<PAGE>
CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND
As of December 31, 1999 (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 0.72% 4.74% 5.75% 4.43%
Investor Shares 0.48% 4.61% 5.67% 4.37%
</TABLE>
Life of Fund Performance*
[TABULAR REPRESENTATION OF LINE CHART]
<TABLE>
<CAPTION>
Chase
Short-Intermediate Lipper
Term Short-Intermediate Lehman Lehman
U.S. Government U.S. Gov't. Intermediate 1-3 Year
Securities Funds Gov't. Gov't.
Fund Index Index Index
<S> <C> <C> <C> <C>
4/93 10000 10000 10000 10000
12/93 10240 10350 10428 10317
12/94 10129 10190 10246 10368
12/95 11348 11439 11724 11493
12/96 11659 11855 12199 12078
12/97 12388 12674 13121 12881
12/98 13299 13552 14232 13858
12/99 13408 13663 14304 14269
</TABLE>
*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 December 31, 1999. The performance of the Fund assumes the reinvestment
of all dividends and capital gains and does not include a sales charge. The
performance of the indices does not include a sales charge and has been adjusted
to reflect the reinvestment of all dividends and capital gains on the securities
included in the benchmark. Premier Shares carry a $1 million minimum initial
investment and carry no sales charge.
Investor Shares 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 Fund 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.
7
<PAGE>
- --------------------------------------------------------------------------------
CHASE INTERMEDIATE TERM BOND FUND
As of December 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
How the Fund Performed
Chase Intermediate Term Bond Fund had a total return of -1.11% (Premier Shares)
for the year ended December 31, 1999. This compares to -1.31% for the Lipper
Intermediate Grade Debt Funds Index and -.82% for the Lehman Aggregate Index.
How the Fund Was Managed
With interest rates rising throughout the year, 1999 was a difficult environment
for all types of US fixed income securities. Compounding the difficulties was
high issuance of non-Treasury "spread" sector securities as government agency
and corporate issuers sought to fund their debt before higher rates made it
unattractive.
Concerned that fixed income markets had entered a corrective phase of
consolidation, the management team became defensive and cut duration in
February. However, after allowing duration to rise in March, the management team
continued to extend until duration became relatively neutral in May. The Fund
added corporate and mortgage-backed securities in the first quarter of the year
and added Federal agency paper in the second quarter when large issuance led to
high yields on these issues relative to Treasuries. In the third quarter, the
Fund was able to buy Federal agency paper at what turned out to be the most
beneficial point of the year and adding to its holdings of corporate securities,
which held up relatively well during a poor quarter for corporates due to the
management team's focus on maturities of less than three years.
The Fund underwent a change of management in the fourth quarter. When the new
management team took over, the Fund had a longer-than-benchmark duration and was
underweight in mortgage-backed securities. In an effort to improve
diversification, increase dividend yield to shareholders and make the portfolio
reflective of its interest rate views, the management team took several steps.
First, it allowed the Fund's duration (and hence its sensitivity to changes in
interest rates) to shorten dramatically, making an especially significant
strategic reduction in December. Next, the Fund's exposure to mortgages was
increased to become neutral relative to its peer group while its corporate
holdings were raised to an overweight position, with the latter move being made
with the first quarter of 2000 in mind. Each of these moves proved beneficial in
the last two months of 1999 as interest rates rose and non-Treasury "spread"
sectors outperformed.
Where the Fund May Be Headed
Moving forward, the management team believes that above-trend economic growth,
tight labor markets and increasing inflation will drive long-term rates higher
and cause the Federal Reserve to hike short-term rates. As such, it is expected
that the Fund will maintain a slightly short of benchmark duration and an
overweight position in the non-Treasury "spread" sectors, which tend to
outperform in a rising rate environment.
8
<PAGE>
CHASE INTERMEDIATE TERM BOND FUND
As of December 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[TABULAR REPRESENTATION OF PIE CHART]
<TABLE>
<S> <C>
Corporate Notes & Bonds (38.7%)
Mortgage-Backed Pass Through Securities (29.9%)
U.S. Government Agency Securities (25.7%)
U.S. Treasury Securities (5.7%)
</TABLE>
9
<PAGE>
CHASE INTERMEDIATE TERM BOND FUND
As of December 31, 1999 (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 -1.11% 4.51% 6.32% 6.00%
Investor Shares -1.36% 4.41% 6.26% 5.94%
</TABLE>
Life of Fund Performance*
[TABULAR REPRESENTATION OF LINE CHART]
<TABLE>
<CAPTION>
Lipper
Chase Intermediate Lehman
Intermediate Grade Lehman Intermediate
Term Bond Debt Funds Aggregate Gov't./Corp
Fund Index Index Index
<S> <C> <C> <C> <C>
10/94 10000 10000 10000 10000
12/94 9990 10010 10038 9989
12/95 11668 11724 11892 11518
12/96 11889 12126 12322 11985
12/97 12750 13191 13514 12928
12/98 13722 14230 14686 14016
12/99 13584 14091 14563 14070
</TABLE>
*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./Corp. Index, the Lehman Aggregate Index and the Lipper Intermediate Grade
Debt Funds Index from October 31, 1994 to December 31, 1999. The performance of
the Fund assumes the reinvestment of all dividends and capital gains and does
not include a sales charge. The performance of the indices does not include a
sales charge and has been adjusted to reflect the reinvestment of all dividends
and capital gains on the securities included in the benchmark. Premier Shares
carry a $1 million minimum initial investment and carry no sales charge.
Investor Shares 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/Corp. 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.
10
<PAGE>
- --------------------------------------------------------------------------------
CHASE U.S. GOVERNMENT SECURITIES FUND
As of December 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
How the Fund Performed
Chase U.S. Government Securities Fund had a total return of -2.55% (Premier
Shares) for the year ended December 31, 1999. This compares to -3.01% for the
Lipper General U.S. Government Funds Index and -2.23% for the Lehman Government
Index.
How the Fund Was Managed
With interest rates rising throughout the year, 1999 was a difficult
environment for all types of US fixed income securities. Compounding the
difficulties was high issuance of non-Treasury "spread" sector securities as
government agency and corporate issuers sought to fund their debt before higher
rates made it unattractive.
In the first half of the year, concerned that fixed income markets had entered
a corrective phase of consolidation, the management team's strategy was to stay
relatively close to its index and capture yield where possible without taking
on excessive risk. Consistent with this strategy, the Fund added
mortgage-backed securities in the first quarter of the year and added Federal
agency paper in the second quarter when large issuance led to high yields on
these issues relative to Treasuries. In the third quarter, the Fund continued
to modestly add to its holdings of federal agency and mortgage-backed
securities to take advantage of further widening in yield spreads due to new
issuance by government agencies.
The Fund underwent a change of management in the fourth quarter. When the new
team took over, the Fund had a longer-than-benchmark duration and was
underweight in mortgage-backed securities versus its Lipper peer group. In an
effort to improve diversification, increase dividend yield to shareholders and
make the portfolio reflective of its interest rate views, the management team
took several steps. First, it allowed the Fund's duration (and hence its
sensitivity to changes in interest rates) to shorten dramatically, making an
especially significant strategic reduction in December. Next, the Fund's
exposure to mortgages was increased while exposure to Treasury securities was
cut. Each of these moves proved beneficial in the final two months of the year
as interest rates rose and non-Treasury "spread" sectors outperformed.
Where the Fund May Be Headed
Moving forward, the management team believes that above-trend economic growth,
tight labor markets and increasing inflation will drive long-term rates higher
and cause the Federal Reserve to hike short-term rates. As such, it is expected
that the Fund will maintain a slightly short of benchmark duration and an
overweight position in mortgage-backed securities, which tend to outperform in
a rising rate environment.
11
<PAGE>
CHASE U.S. GOVERNMENT SECURITIES FUND
As of December 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[PIE CHART PLOT POINTS]
Mortgage-Backed
Pass Through
Securities (41.4%)
U.S. Treasury
Securities (33.9%)
U.S. Government
Agency Securities (24.7%)
[END PLOT POINTS]
12
<PAGE>
CHASE U.S. GOVERNMENT SECURITIES FUND
As of December 31, 1999 (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 -2.55% 5.27% 8.28% 6.07%
Investor Shares -2.79% 5.18% 8.22% 6.03%
</TABLE>
Life of Fund Performance*
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Chase U.S. Government Lipper General U.S. Lehman
Securities Fund Gov't. Funds Index Gov't. Index
<S> <C> <C> <C>
4/93 10000 10000 10000
12/93 10910 10462 10587
12/94 9999 9966 10229
12/95 13010 11654 12106
12/96 12760 11905 12440
12/97 13981 12991 13632
12/98 15279 14010 14975
12/99 14900 13637 14849
</TABLE>
[END PLOT POINTS]
*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
December 31, 1999. The performance of the Fund assumes the reinvestment of all
dividends and capital gains and does not include a sales charge. The
performance of the indices does not include a sales charge and has been
adjusted to reflect the reinvestment of all dividends and capital gains on the
securities included in the benchmark. Premier Shares carry a $1 million minimum
initial investment and carry no sales charge.
Investor Shares 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.
13
<PAGE>
- --------------------------------------------------------------------------------
CHASE INCOME FUND
As of December 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
How the Fund Performed
Chase Income Fund had a total return of -2.78% (Premier Shares) for the year
ended December 31, 1999. This compares to -2.58% for the Lipper Corporate Debt
A Rated Fund Index and -2.15% for the Lehman Government/Corporate Index.
How the Fund Was Managed
With interest rates rising throughout the year, 1999 was a difficult
environment for all types of US fixed income securities. Compounding the
difficulties was high issuance of non-Treasury "spread" sector securities as
government agency and corporate issuers sought to fund their debt before higher
rates made it unattractive.
In the first half of the year, concerned that fixed income markets had entered
a corrective phase of consolidation, the management team's strategy was to stay
relatively close to its index and capture yield where possible without taking
on excessive risk. Consistent with this strategy, the Fund added corporate and
mortgage-backed securities in the first quarter of the year and added Federal
agency paper in the second quarter when large issuance led to high yields on
these issues relative to Treasuries. In the third quarter, the Fund continued
to modestly add to its holdings of non-Treasury "spread" sectors to take
advantage of further widening in yield spreads due to new issuance by
government agencies and corporations.
The Fund underwent a change of management in the fourth quarter. When the new
team took over, the Fund had a longer-than-benchmark duration, was underweight
in mortgage-backed securities and held no asset-backed or commercial
mortgage-backed securities. In an effort to improve diversification, increase
dividend yield to shareholders and make the portfolio reflective of its
interest rate views, the management team took several steps. First, it allowed
the Fund's duration (and hence its sensitivity to changes in interest rates) to
shorten dramatically, making an especially significant strategic reduction in
December. Next, the Fund's exposure to mortgages was increased and asset-backed
securities were added. Each of these moves proved beneficial in the final two
months of the year as interest rates rose and non-Treasury "spread" sectors
outperformed.
Where the Fund May Be Headed
Moving forward, the management team believes that above-trend economic growth,
tight labor markets and increasing inflation will drive long-term rates higher
and cause the Federal Reserve to hike short-term rates. As such, it is expected
that the Fund will maintain a slightly short of benchmark duration and an
overweight position in the non-Treasury "spread" sectors, which tend to
outperform in a rising rate environment.
14
<PAGE>
CHASE INCOME FUND
As of December 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[PIE CHART PLOT POINTS]
U.S. Government
Agency Securities
(44.7%)
Mortgage-Backed
Securities (22.5%)
Corporate Notes
& Bonds (21.3%)
U.S. Treasury
Securities (8.9%)
Asset Backed
Securities (1.8%)
Foreign Government
Securities (0.8%)
[END PLOT POINTS]
15
<PAGE>
CHASE INCOME FUND
As of December 31, 1999 (Unaudited)
Average Annual Total Returns
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
Premier Shares -2.78% 4.99% 6.89% 6.47%
Investor Shares -2.92% 4.91% 6.84% 6.45%
</TABLE>
10 Year Performance*
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Chase Income Lipper Corporate Debt A Lehman Gov't./Corp.
Index Rated Fund Index Index
<S> <C> <C> <C>
12/89 10000 10000 10000
12/90 10654 10665 10829
12/91 12119 12528 12576
12/92 12746 13471 13528
12/93 14044 15074 15024
12/94 13416 14332 14497
12/95 15874 17171 17286
12/96 16178 17649 17788
12/97 17590 19345 19523
12/98 19257 20760 21371
12/9 18742 20337 20912
</TABLE>
[END PLOT POINTS]
*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 Government/Corporate Index and
the Lipper Corporate Debt A Rated Funds Index from December 31, 1989 to
December 31, 1999. The performance of the Fund assumes the reinvestment of all
dividends and capital gains and does not include a sales charge. The
performance of the indices does not include a sales charge and has been
adjusted to reflect the reinvestment of all dividends and capital gains on the
securities included in the benchmark. Premier Shares carry a
$1 million minimum initial investment and carry no sales charge.
Investor Shares 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/Corp. 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.
16
<PAGE>
- --------------------------------------------------------------------------------
CHASE BALANCED FUND
As of December 31, 1999 (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 14.23% (Premier Shares) compared
to the Lipper Balanced Funds Index return of 8.98% and the Lehman Gov't./Corp.
Index return of -2.15% for the one year period ended December 31, 1999.
How the Fund Was Managed
The Fund's equity portfolio performed well during a year ideally-suited to its
style of buying high quality, large-cap growth stocks with superior earnings
prospects. The fixed income portfolio lost value, however, as U.S. Treasury
yields rose in the face of continuing robust economic growth and fears of
higher inflation.
Most of the equity portfolio's gain was recorded in the fourth quarter.
Technology stocks rallied as the market focused on areas judged likely to
profit from the Internet economy. Expectations of strong growth in demand for
semiconductors, cell phones and communications equipment boosted many names.
Holdings like Microsoft, Cisco Systems and Nortel Networks all performed well.
But gains were not restricted to technology. The Fund benefited from an
investment in Omnicom, the advertising and marketing multinational, where
growth in Internet dot.com advertising should boost profits. Stock prices of a
number of 'old media' companies--like AT&T, Liberty Media and Time Warner--also
rose in anticipation of convergence with 'new media.'
Strong stock picking even enabled the equity portfolio to perform well in the
difficult third quarter, when inflation worries trapped much of the market in a
trading range. Technology stocks and a small number of well-managed blue chips
continued to make new highs. The Fund benefited from holdings in companies like
Microsoft, Intel, Dell Computer, GE, and Procter & Gamble.
The fixed income portfolio was not so fortunate. Although the portfolio
invested in the short maturity securities least vulnerable to rising inflation,
it was unable to avoid falling bond prices. Inflation fears intensified in the
third and fourth quarters. The Federal Open Markets Committee raised rates
three times in the year, and the yield on the benchmark 30-year U.S. Treasury
rose from 5.1% to 6.5% in the course of the year.
Where the Fund May Be Headed
\Looking ahead, equity market rallies may no longer focus to such an extent on
technology stocks, but may include a broader selection of names. The outlook
for fixed income is negative due to stronger-than-trend economic growth and the
likelihood of further rate rises. The Fund will benefit, however, from its
balanced approach, and its large-cap growth style.
17
<PAGE>
CHASE BALANCED FUND
As of December 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[PIE CHART PLOT POINTS]
Transportation (0.3%)
Technology (21.2%)
Corporate Notes
& Bonds (19.8%)
U.S. Treasury Securities (15.9%)
Health Care (8.6%)
Consumer
Cyclicals (8.2%)
Cash Equuivalent &
Short-Term Paper (6.5%)
Capital Goods (5.2%)
Utilities (5.1%)
U.S. Government Agency Securities (4.3%)
Financial (3.5%)
Consumer Staples (1.4%)
[END PLOT POINTS]
Top Ten Equity Holdings of the Portfolio
1. Microsoft Corp. (3.3%) Develops, manufactures, licenses and supports
computer software products.
2. General Electric Co. (2.7%) A diversified manufacturing, technology and
services company. Operations include appliance manufacturing, capital services,
information services, and electrical distribution.
3. EMC Corp. (2.3%) Provides enterprise storage systems, software, networks and
services.
4. Intel Corp. (2.2%) Manufactures micro and personal computers. The Company
also supplies mainframe computers and other information processing equipment,
software and networking products and peripheral equipment.
5. Wal-Mart Stores, Inc. (2.1%) The "Wal-Mart" Company's discount stores and
"Supercenters" offer merchandise such as apparel, housewares, small appliances,
electronics, hardware, and other products.
6. Applied Materials, Inc. (2.0%) Develops, manufactures, markets and services
semiconductor wafer fabrication equipment and related spare parts for the
worldwide semiconductor industry.
7. Amgen, Inc. (1.9%) Discovers, develops, manufactures, and markets human
therapeutics based on cellular and molecular biology. Focuses its research on
secreted protein and small molecule therapeutics.
8. America Online, Inc. (1.8%) Provides interactive communications and services
through its America Online and Compuserve worldwide Internet online services.
9. Novellus Systems, Inc. (1.8%) Manufactures, markets and services advanced
automated wafer fabrication systems for the deposition of thin films.
10. Cisco Systems, Inc. (1.8%) Supplies data networking products to the
corporate enterprise and public wide area service provider markets.
Top 10 equity holdings comprised 21.9% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
18
<PAGE>
CHASE BALANCED FUND
As of December 31, 1999 (Unaudited)
Average Annual Total Returns
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Year
<S> <C> <C> <C> <C>
Premier Shares 14.23% 20.92% 19.51% 12.84%
Investor Shares 13.94% 20.78% 19.42% 12.80%
</TABLE>
10 Year Performance*
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Chase Balanced Lipper Balanced Lehman Govt./ S&P 500
Fund Funds Index Corp. Index Index
<S> <C> <C> <C> <C>
12/89 10000 10000 10000 10000
12/90 10136 10066 10828 9690
12/91 12584 12665 12575 12642
12/92 13256 13610 13528 13605
12/93 14048 15237 15020 14976
12/94 13730 14925 14493 15174
12/95 17001 18639 17282 20876
12/96 18929 21072 17784 25669
12/97 23407 25349 19519 34233
12/98 29291 29173 21368 44016
12/99 33464 31792 20909 53278
</TABLE>
[END PLOT POINTS]
*Source: Lipper Analytical Services, Inc.
Past performance is no guarantee of future results. Investment returns and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than the original cost.
The Fund is currently waiving certain fees. The voluntary waiver may be
modified or terminated at any time, which would reduce performance.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Balanced Fund, the Lehman Government/Corporate Index,
the Standard & Poor's 500 Index and the Lipper Balanced Funds Index from
December 31, 1989 to December 31, 1999. The performance of the Fund assumes the
reinvestment of all dividends and capital gains and does not include a sales
charge. The performance of the indices does not include a sales charge and has
been adjusted to reflect the reinvestment of all dividends and capital gains on
the securities included in the benchmark. Premier Shares carry a $1 million
minimum initial investment and carry no sales charge.
Investor Shares were introduced on 10/16/98 and have a minimum initial
investment of $2,500. Please note internal expenses are greater for the
Investor Shares class. Performance measurements for the Investor Shares prior
to 10/16/98 are based on the predecessor Premier Shares class and do not
include Investor Share class expenses.
Chase Balanced Fund is the successor to the AVESTA Trust-Balanced Fund.
Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to Mutual
Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part of the
conversion, the Fund transferred all of its assets to Chase Balanced Fund, a
new investment portfolio of MFIT.
Chase Balanced Fund, unlike the AVESTA Trust-Balanced Fund, is subject to
certain diversification, distribution and other requirements imposed under the
Internal Revenue Code, which may impact performance.
The Lipper Balanced Funds Index represents performance of the largest 30
balanced funds. Each of these funds invests in a portfolio of stocks and bonds.
Lipper is an independent mutual fund performance monitor whose results are
based on total return and do not reflect a sales charge. An individual cannot
invest directly in an index.
The Standard and Poor's 500 Index is an unmanaged broad-based index that
replicates the U.S. stock markets. It includes 500 widely held common stocks.
Total return figures represent the reinvestment of dividends. An individual
cannot invest directly in an index.
The Lehman Government/Corporate Index includes the Government and Corporate
Bond Indices, including the U.S. Government Treasury and agency securities,
corporate and yankee bonds. The index is unmanaged and reflects the
reinvestment of dividends. An individual cannot invest directly in an index.
19
<PAGE>
- --------------------------------------------------------------------------------
CHASE EQUITY INCOME FUND
As of December 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
How the Fund Performed
Chase Equity Income Fund, which seeks to provide capital appreciation and
current income, generated a total return of 13.06% (Premier Shares) compared to
the Lipper Equity Income Funds Index return of 4.19% and the Lipper Large Cap
Value Index return of 10.78% for the one year period ended December 31, 1999.
How the Fund Was Managed
High-quality growth stocks drove the Fund's performance during the year. As
befits a defensive portfolio that seeks to earn a current income in excess of
the S&P 500 Index, the Fund was not invested in some of the technology
companies that have yet to pay dividends, and so did not gain the full benefit
from the year-end rally fueled by euphoria concerning the Internet economy.
Arguably, though, its gains should prove reasonably resilient to any future
correction.
During the all-important fourth quarter, the Fund rose 7.9%. While this was
less than the broad market, as defined by the S&P 500 Index, the stocks that
fueled the rise were high quality names. The top five contributors to
performance were: GE; Motorola; Microsoft, which bounced back following its
anti-trust trial; Wal-Mart; and Citigroup. All are proven growth stocks, with
experienced managements that have met earnings expectations quarter after
quarter.
Financials as a whole performed well for the Fund in the fourth quarter
following the repeal of the Glass-Steagall Act, which was introduced to prevent
investment banks and commercial banks from merging. In addition to Citigroup,
American International Group made a significant contribution.
The Fund illustrated its defensive credentials in the third quarter, when
interest rate and inflation fears caused much of the equity market to become
trapped in a trading range. The Fund outperformed the broad market indices for
the quarter.
Over the course of the year, the Fund's performance ranked well within its
equity-income peer group. However, its income-generating objective will always
limit participation in rallies such as that which we experienced at the end of
this past year.
Where the Fund May Be Headed
The Fund will continue to be run in a conservative fashion intended to cushion
the impact of market volatility. It will invest in well-managed companies with
diversified businesses that offer some protection from economic uncertainty.
The intention is to create a portfolio of stocks with a roughly 85% exposure to
the S&P 500 Index. In other words, the Fund should capture at least 85% of any
rise, but no more than 85% of any fall.
20
<PAGE>
CHASE EQUITY INCOME FUND
As of December 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[PIE CHART PLOT POINTS]
Transporation (0.9%)
Technology (19.7%)
Financial (16.2%)
Health Care (10.7%)
Utilities (10.1%)
Consumer
Cyclicals (9.9%)
Energy (9.2%)
Cash Equivalent &
Short-Term Paper (8.6%)
Capital Goods (6.5%)
Consumer Staples (5.1%)
Basic Materials (3.1%)
[END PLOT POINTS]
Top Ten Equity Holdings of the Portfolio
1. General Electric Co. (4.2%) A diversified manufacturing, technology and
services company. Operations include appliance manufacturing, capital services,
information services, and electrical distribution.
2. Microsoft Corp. (3.7%) Develops, manufactures, licenses and supports
computer software products.
3. International Business Machines Corp. (3.3%) Manufactures micro and personal
computers. The Company also supplies mainframe computers and other information
processing equipment, software and networking products and peripheral
equipment.
4. American International Group (3.1%)
Provides a variety of insurance and financial services in the U.S. and
internationally. The Company writes property, casualty, marine, life, and
financial services insurance.
5. Citigroup, Inc. (2.9%) A diversified financial services holding company that
provides investment services, including asset management, consumer finance ser-
vices, property and casualty insurance services, and life insurance services.
6. Lucent Technologies, Inc. (2.9%)
Designs, develops, manufactures, and distributes communications systems,
software, and products worldwide.
7. Wal-Mart Stores, Inc. (2.6%) The "Wal-Mart" Company's discount stores and
Supercenters" offer merchandise such as apparel, housewares, small appliances,
electronics, hardware, and other products.
8. Intel Corp. (2.5%) Manufactures micro and personal computers. The Company
also supplies mainframe computers and other information processing equipment,
software and networking products and peripheral equipment.
9. Texas Instruments, Inc. (2.5%) Provides semiconductor products, as well as
designs and supplies digital processing and analog technologies.
10. Procter & Gamble Co. (2.4%) Manufactures and markets consumer products for
laundry and cleaning, paper, beauty care, food, beverages, and health care.
Top 10 equity holdings comprised 30.1% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
21
<PAGE>
CHASE EQUITY INCOME FUND
As of December 31, 1999 (Unaudited)
Average Annual Total Returns
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
Premier Shares 13.06% 23.20% 24.13% 14.70%
Investor Shares 12.70% 23.04% 24.03% 14.66%
</TABLE>
10 Year Performance*
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Chase Equity Lipper Equity Inome Lipper Large Cap S&P 500
Income Fund Funds Index Value Index Index
<S> <C> <C> <C> <C>
12/89 10000 10000 10000 10000
12/90 9558 9489 9595 9690
12/91 11665 12020 12533 12642
12/92 12324 13191 13618 13605
12/93 13841 15149 15424 14976
12/94 13378 15011 15452 15174
12/95 17886 19488 20589 20876
12/96 21084 22991 24926 25669
12/97 27631 29234 32024 34233
12/98 34869 32677 37865 44016
12/99 39422 34045 41947 53278
</TABLE>
[END PLOT POINTS]
*Source: Lipper Analytical Services, Inc.
Past performance is no guarantee of future results. Investment returns and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than the original cost.
The Fund is currently waiving certain fees. The voluntary waiver may be
modified or terminated at any time, which would reduce performance.
This chart represents the comparative performance of $10,000 invested in
Premier Shares of Chase Equity Income, the Standard & Poor's 500 Index and the
Lipper Equity Income Funds Index from December 31, 1989 to December 31, 1999.
The performance of the Fund assumes the reinvestment of all dividends and
capital gains and does not include a sales charge. The performance of the
indices does not include a sales charge and has been adjusted to reflect the
reinvestment of all dividends and capital gains on the securities included in
the benchmark. Premier Shares carry a $1 million minimum initial investment and
carry no sales charge.
Investor Shares were introduced on 8/24/98 and have a minimum initial
investment of $2,500. Please note internal expenses are greater for the
Investor Shares class. Performance measurements for the Investor Shares prior
to 8/24/98 are based on the predecessor Premier Shares class and do not include
Investor Share class expenses.
Chase Equity Income Fund is the successor to the AVESTA Trust Equity 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 Equity Income Funds Index represents performance of the largest 30
Equity Income Funds. Each of these funds combines a growth of earnings
orientation and an income requirement for level and/or rising dividends. The
Lipper Large Cap Value 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.
22
<PAGE>
- --------------------------------------------------------------------------------
CHASE SMALL CAPITALIZATION FUND
As of December 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
How the Fund Performed
Chase Small Capitalization Fund, which seeks to provide capital appreciation,
provided a total return of 13.23% (Premier Shares) compared to the Lipper Small
Company Funds Index return of 41.54% and Lipper Small Cap Core Fund Index
return of 20.17% for the one year period ended December 31, 1999.
How the Fund Was Managed
Superior stock selection helped the Fund perform well in the final quarter of
the year. It benefited from holding a number of the small caps judged likely to
grow earnings as a result of expansion in the Internet economy and advances in
healthcare. Further, there were a number of names in the portfolio that were
taken over toward year-end.
Almost all of the year's gain came in the fourth quarter, when technology
companies rallied in expectation of a surge in demand for semiconductor
devices, cell phones and communications equipment. Vishay Intertechnology and
CTS--the contract manufacturing electronics company--were strong performers, as
were Molecular Devices, an instrumentation company enabling drug discovery, and
King Pharmaceuticals. Oak Industries, a provider of components for the
communications industry, rose following its November acquisition by technology
company Corning. The deal strengthens Corning's position as a global leader in
optical communications.
The biggest contributors to performance for the year as a whole also tended to
come from the technology sector. Comverse Technology, the telecommunication
equipment specialist, was a leading holding, as was Cree Research, and Actel,
two semiconductor companies. Micros Systems, the software development company,
also performed well, as did Optical Coating Laboratory and PRI Automation.
In the early months of the year, small-cap performance was lackluster as
investors focused on large cap stocks. During the second quarter, however,
performance rebounded somewhat as the equity market's leadership stocks
broadened out to include not just the large technology stocks. An array of
sectors from basic materials to capital goods to consumer cyclicals performed
well in the period. The third quarter was another dull period for small caps as
inflation worries dogged the market.
Where the Fund May Be Headed
We are cautiously optimistic regarding the prospects for small-cap stocks.
Earnings forecasts for small caps are roughly double those of large caps, and
small-cap valuations are still reasonable. However, there is a caveat in that
small-cap stock prices would be particularly vulnerable to sustained rises in
interest rates.
23
<PAGE>
CHASE SMALL CAPITALIZATION FUND
As of December 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[PIE CHART PLOT POINTS]
Technology (28.8%)
Consumer
Cyclicals (20.9%)
Health Care (12.5%)
Capital Goods (12.3%)
Financial (7.8%)
Cash Equivalent &
Short-Term Paper (5.4%)
Energy (3.9%)
Utilities (3.4%)
Basic Materials (2.0%)
Real Estate (1.3%)
Transportation (1.1%)
Consumer Staples (0.6%)
[END PLOT POINTS]
Top Ten Equity Holdings of the Portfolio
1. Optical Coating Laboratory, Inc. (3.3%) Manufactures optical thin film coated
components used to manage light. The Company's products are used in computer
monitors, flat panel displays and telecommunications systems.
2. PRI Automation, Inc. (3.2%) Supplies factory automation systems for
semiconductor manufacturers and original equipment suppliers.
3. CTS Corp. (3.0%) Designs, manufactures and sells electronic components and
custom electronic assemblies. The Company sells its products to original
equipment manufacturers primarily in the communications equipment markets.
4. Comverse Technology, Inc. (2.7%) Designs, manufactures, markets, and supports
computer and telecommunications systems and software for multimedia
communications and information processing applications.
5. Molecular Devices Corp. (2.4%) Designs, develops, manufactures, and markets
bioanalytical measurement systems, including software and consumables.
6. OAK Industries, Inc. (2.4%) Manufactures engineered components that it
designs and sells to manufacturers and service providers in communication and
other selected industries.
7. Vishay Intertechnology, Inc. (2.1%) Manufactures a broad line of discrete
passive electronic components and discrete active electronic components,
particularly resistors and transistors.
8. Micros Systems, Inc. (2.1%) Designs, manufactures, markets, and services
enterprise information solutions for the global hospitality industry. The
Company's solutions consist of application specific software and hardware
systems.
9. BJ's Wholesale Club, Inc. (2.0%) A merchandise wholesale club chain. The
Company sells brand name food and general merchandise at discount prices.
10. Spartech Corp. (2.0%) Produces engineered thermoplastic materials, polymeric
compounds, and molded and profile products for a wide spectrum of manufacturing
customers.
Top 10 equity holdings comprised 25.2% of the Portfolio's market
value of investments. Portfolio holdings are subject to change at any time.
24
<PAGE>
CHASE SMALL CAPITALIZATION FUND
As of December 31, 1999 (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 13.23% 11.32% 18.80% 13.99%
Investor Shares 12.89% 11.17% 18.71% 13.92%
</TABLE>
Life of Fund Performance*
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Chase Small Lipper Small Company Lipper Small Cap
Capitalization Fund Funds Index Core Fund Index S&P 500 Index
<S> <C> <C> <C> <C>
4/93 10000 10000 10000 10000
12/93 10890 11565 10948 11469
12/94 10230 11509 10966 10921
12/95 13410 15148 14338 14194
12/96 17550 17324 17020 17220
12/97 21781 19926 20804 21626
12/98 21381 19755 20047 21342
12/99 24208 27962 24092 23991
</TABLE>
[END PLOT POINTS]
*Source: Lipper Analytical Services, Inc.
Past performance is no guarantee of future results. Investment returns and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than the original cost.
The Fund is currently waiving certain fees. The voluntary waiver may be
modified or terminated at any time, which would reduce performance.
This chart represents the comparative performance of $10,000 invested in
Premier Shares of Chase Small Capitalization Fund, the Standard & Poor's 600
Index and the Lipper Small Company Funds Index from April 1, 1993 to December
31, 1999. The performance of the Fund assumes the reinvestment of all dividends
and capital gains and does not include a sales charge. The performance of the
Index and the Average do not include a sales charge and have been adjusted to
reflect the reinvestment of all dividends and capital gains on the securities
included in the benchmark. Premier Shares carry a $1 million minimum initial
investment and carry no sales charge.
Investor Shares were introduced on 8/12/98 and have a minimum initial
investment of $2,500. Please note internal expenses are greater for the
Investor Shares class. Performance measurements for the Investor Shares prior
to 8/12/98 are based on the predecessor Premier Shares class and do not include
Investor Share class expenses.
The Chase Small Capitalization Fund is the successor to the AVESTA Trust Small
Capitalization Fund. Effective 12/31/97, the AVESTA Trust was converted from a
Texas Trust to Mutual Fund Investment Trust ("MFIT"), a Massachusetts business
trust. As part of the conversion, the Fund transferred all of its assets to
Chase Small Capitalization Fund, a new investment portfolio of MFIT.
The Chase Small Capitalization Fund, unlike the AVESTA Small Capitalization
Fund is subject to certain diversification, distribution and other requirements
imposed under the Internal Revenue Code, which may impact performance.
The Lipper Small Company Funds Index represents the performance of the 30
largest small company funds. The Lipper Small Cap Core 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.
25
<PAGE>
- --------------------------------------------------------------------------------
CHASE CORE EQUITY FUND
As of December 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
How the Fund Performed
Chase Core Equity Fund, which seeks to maximize total investment return with an
emphasis on long-term capital appreciation and current income, provided a total
return of 23.89% (Premier Shares) compared to the Lipper Growth & Income Funds
Index return of 11.86% and Lipper Large Cap Core Index return of 19.35% for the
one year period ended December 31, 1999.
How the Fund Was Managed
Skillful stock selection and good performance by precisely the type of stock
bought by the Fund (i.e., high quality, large-cap growth stocks with superior
earnings prospects) led to superior returns compared to the market.
Most of the gain was recorded in the fourth quarter, when the Fund rode the
technology-stock rally to return a total of 15.58%. Technology stocks rallied
as the market focused on areas judged likely to profit from the Internet
economy. Expectations of strong growth in demand for semiconductors, cell
phones and communications equipment boosted many names. Holdings like
Microsoft, Cisco Systems and Nortel Networks all performed well. But gains were
not restricted to technology. The Fund benefited from an investment in Omnicom,
the advertising and marketing multinational, where growth in internet dot.com
advertising should boost profits. Stock prices of a number of `old media'
companies--like AT&T Liberty Media and Time Warner--also rose in anticipation
of convergence with `new media'.
The Fund's investment style was even suited to the difficult third quarter,
when inflation and valuation worries haunted the market. Much of the equity
market was trapped in a trading range, and those companies that missed earnings
forecasts were severely punished. Yet technology stocks and a small number of
well-managed blue chips continued to make new highs. The Fund benefited from
holdings in companies like Microsoft, Intel and Dell Computer. It also had
positions in well-managed multinationals like GE and Procter & Gamble.
However, a number of portfolio stocks did perform badly at that time as a
result of disappointing trading. Discount broker Charles Schwab fell sharply
after warning that profit margins might deteriorate sharply later in the year.
Where the Fund May Be Headed
Looking ahead, market rises may no longer focus to such an extent on technology
stocks, but may include a broader selection of stocks. If interest rates
continue to move higher, technology-stock valuations will be impacted. As
always, the Fund may benefit both from its balanced approach and its strategy
of holding large companies with superior earnings growth and leadership
positions in their markets.
26
<PAGE>
CHASE CORE EQUITY FUND
As of December 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[PIE CHART PLOT POINTS]
Technology (26.9%)
Consumer
Cyclicals (17.0%)
Financial (13.5%)
Health Care (10.3%)
Utilities (7.5%)
Capital Goods (7.3%)
Energy (7.1%)
Cash Equivalent &
Short-Term Paper (4.9%)
Consumer Staples (2.7%)
Basic Materials (1.9%)
Transportation (0.9%)
[END PLOT POINTS]
Top Ten Equity Holdings of the Portfolio
1. Microsoft Corp. (6.6%) Develops, manufactures, licenses and supports
computer software products.
2. General Electric Co. (4.5%) A diversified manufacturing, technology and
services company. Operations include appliance manufacturing, capital services,
information services, and electrical distribution.
3. 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.
4. Exxon Mobil Corp. (3.1%) Operates petroleum and petrochemicals businesses on
a worldwide basis. Operations include exploration and production of oil and
gas.
5. American International Group, Inc. (2.8%) Provides a variety of insurance
and financial services in the U.S. and internationally. The Company writes
property, casualty, marine, life, and financial services insurance.
6. Cisco Systems, Inc. (2.8%) Supplies data networking products to the corpo-
rate enterprise and public wide area service provider markets.
7. Intel Corp. (2.3%) Manufactures micro and personal computers. The Company
also supplies mainframe computers and other information processing equipment,
software and networking products and peripheral equipment.
8. Home Depot, Inc. (2.2%) Sells building materials and home improvement
products. The Company's stores sell plumbing, heating and electrical supplies,
lumber, floor and wall coverings.
9. Lucent Technologies, Inc. (2.2%) Designs, develops, manufactures, and
distributes communications systems, software, and products worldwide.
10. Citigroup, Inc. (2.1 %) 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 32.2% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
27
<PAGE>
CHASE CORE EQUITY FUND
As of December 31, 1999 (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 23.89% 29.32% 27.18% 20.11%
Investor Shares 23.59% 29.17% 27.09% 20.05%
</TABLE>
Life of Fund Performance*
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Chase Core Lipper Growth & Lipper Large Cap
Equity Fund Income Funds Index Core Index S&P 500 Index
<S> <C> <C> <C> <C>
4/93 10000 10000 10000 10000
12/93 10800 10821 10688 10547
12/94 10358 10777 10573 10687
12/95 13006 14132 13930 14702
12/96 15936 17054 16694 18078
12/97 21246 21638 21573 24109
12/98 27823 24576 27384 31000
12/99 34476 27491 32682 37523
</TABLE>
[END PLOT POINTS]
*Source: Lipper Analytical Services, Inc.
Past performance is no guarantee of future results. Investment returns and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than the original cost.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
This chart represents the comparative performance for $10,000 invested in
Premier Shares of Chase Core Equity Fund, the Standard & Poor's 500 Index and
Lipper Growth and Income Funds Index from April 1, 1993 to December 31, 1999.
The performance of the Fund assumed the reinvestment of all dividends and
capital gains and does not include a sales charge. The performance of the
indices does not include a sales charge and has been adjusted to reflect the
reinvestment of all dividends and capital gains on the securities included in
the benchmark. Premier Shares carry a $1 million minimum initial investment and
carry no sales charge.
Investor Shares were introduced on 9/10/98 and have a minimum initial investment
of $2,500. Please note internal expenses are greater for the Investor Shares
class. Performance measurements for the 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 Growth and Income Funds Index represents performance of the largest
30 growth and income funds. Each of these funds combines a growth of earnings
orientation and an income requirement for level and/or rising dividends. The
Lipper Large Cap Core 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.
28
<PAGE>
- --------------------------------------------------------------------------------
CHASE EQUITY GROWTH FUND
As of December 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
How the Fund Performed
Chase Equity Growth Fund, which seeks to provide capital appreciation, generated
a total return of 31.85% (Premier Shares) compared to the Lipper Growth Funds
Index return of 27.96% and Lipper Large Cap Growth Index return of 34.82% for
the one year period ended December 31, 1999.
How the Fund Was Managed
Skillful stock selection benefited the Fund in a year that was perfectly suited
to its style of investing in large-cap growth companies. Technology stocks made
the greatest contributions to performance, but biotechnology stocks were also
beginning to perform towards the year-end in anticipation of advances in medical
science.
Most of the gain came in the fourth quarter, when technology companies rallied
in expectation of a surge in demand for semiconductor devices, cell phones and
communications equipment as a result of the burgeoning Internet economy. Stocks
that rallied strongly then were also among the Fund's leading contributors to
performance for the year as a whole. EMC Corp., Microsoft and Applied Material
were all leading performers. Cisco Systems was also a major contributor.
But the fourth quarter rally was not confined to technology. Financials
performed strongly following the repeal of the Glass-Steagall Act that had
prevented commercial and investment banks from merging.
Another holding that performed well during the year was the biotechnology stock
Amgen. Fellow biotechnology company Biogen was also strong, if a little
volatile.
Otherwise performance was fairly selective. Although retailing, for example, was
poor as a sector, Wal-Mart and Home Depot made significant contributions to Fund
performance.
The Fund's investment style was even suited to the difficult third quarter, when
inflation and valuation worries haunted the market. Much of the equity market
was trapped in a trading range, and those companies that missed earnings
forecasts were severely punished. Yet technology stocks and a small number of
well-managed blue chips continued to make new highs. Although technology and
other growth stocks came under pressure for a few weeks in May, they showed
great resilience.
Where the Fund May Be Headed
Financial markets are in a climate of rising interest rates and historically
high equity valuations. At the same time, investors were highly selective in
1999. While valuations in areas like technology rose significantly, many areas
of the market--such as consumer staples--actually experienced declining prices.
In this environment, there are some valuation discrepancies and, therefore, some
opportunities. The Fund will seek to take advantage of these opportunities
within the context of its focus on high-quality growth companies.
29
<PAGE>
CHASE EQUITY GROWTH FUND
As of December 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[PIE CHART PLOT POINTS]
Technology (37.7%)
Health Care (15.2%)
Consumer
Cyclicals (14.6%)
Capital Goods (9.2%)
Utilities (9.1%)
Financial (6.2%)
Core Equivalent &
Short-Term Paper (5.0%)
Consumer Staples (2.4%)
Transporation (0.6%)
[END PLOT POINTS]
Top Ten Equity Holdings of the Portfolio
1. Microsoft Corp. (5.9%) Develops, manufactures, licenses and supports
computer software products.
2. General Electric Co. (4.8%) A diversified manufacturing, technology and
services company. Operations include appliance manufacturing, capital services,
information services, and electrical distribution.
3. EMC Corp. (4.1%) Provides enterprise storage systems, software, networks and
services.
4. Intel Corp. (3.9%) Manufactures micro and personal computers. The Company
also supplies mainframe computers and other information processing equipment,
software and networking products and peripheral equipment.
5. Wal-Mart Stores, Inc. (3.8%) The "Wal-Mart" Company's discount stores and
"Supercenters" offer merchandise such as apparel, housewares, small appliances,
electronics, hardware, and other products.
6. Applied Materials, Inc. (3.6%) Develops, manufactures, markets and services
semiconductor wafer fabrication equipment and related spare parts for the
worldwide semiconductor industry.
7. Amgen, Inc. (3.4%) Discovers, develops, manufactures, and markets human
therapeutics based on cellular and molecular biology. Focuses its research on
secreted protein and small molecule therapeutics.
8. America Online, Inc. (3.1%) Provides interactive communications and services
through its America Online and Compuserve worldwide Internet online services.
9. Novellus Systems, Inc. (3.1%) Manufactures, markets and services advanced
automated wafer fabrication systems for the deposition of thin films.
10. Cisco Systems, Inc. (3.1%) Supplies data networking products to the
corporate enterprise and public wide area service provider markets.
Top 10 equity holdings comprised 38.8% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
30
<PAGE>
CHASE EQUITY GROWTH FUND
As of December 31, 1999 (Unaudited)
Average Annual Total Returns
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
Premier Shares 31.85% 36.75% 31.14% 18.45%
Investor Shares 31.54% 36.58% 31.04% 18.41%
</TABLE>
10 Year Performance*
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Chase Equity Lipper Growth Lipper Large Cap S&P Barra
Growth Fund Funds Index Growth Index Growth Index
<S> <C> <C> <C> <C>
12/89 10000 10000 10000 10000
12/90 9855 9459 9818 10020
12/91 12974 12895 13484 13865
12/92 13811 13879 14413 14567
12/93 14154 15541 15949 14812
12/94 14023 15297 15818 15275
12/95 17643 20292 21342 21100
12/96 21261 23850 25729 26160
12/97 29168 30536 32828 35677
12/98 41238 38380 44802 50715
12/99 54379 49112 60401 64907
</TABLE>
[END PLOT POINTS]
*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 Growth Funds Index from December 31, 1989 to December 31, 1999.
The performance of the Fund assumes the reinvestment of all dividends and
capital gains and does not include a sales charge. The performance of the
indices does not include a sales charge and has been adjusted to reflect the
reinvestment of all dividends and capital gains on the securities included in
the benchmark. Premier Shares carry a $1 million minimum initial investment and
carry no sales charge.
Investor Shares were introduced on 8/13/98 and have a minimum initial investment
of $2,500. Please note internal expenses are greater for the Investor Shares
class. Performance measurements for the Investor Shares prior to 8/13/98 are
based on the predecessor Premier Shares class and do not include Investor Share
class expenses.
Chase Equity Growth Fund is the successor to the AVESTA Trust Equity Growth
Fund. Effective 12/31/97, the AVESTA Trust was converted from a Texas Trust to
Mutual Fund Investment Trust ("MFIT"), a Massachusetts business trust. As part
of the conversion, the Fund transferred all of its assets to Chase Equity Growth
Fund, a new investment portfolio of MFIT.
Chase Equity Growth Fund, unlike the AVESTA Equity Growth Fund, is subject to
certain diversification, distribution and other requirements imposed under the
Internal Revenue Code, which may impact performance.
The Lipper Growth Funds Index represents performance of the largest 30 growth
funds. Each of these funds invests in companies whose long-term earnings are
expected to grow significantly faster than the earnings of the stocks
represented in the major unmanaged stock indices. The Lipper Large Cap Growth
Fund 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.
31
<PAGE>
- --------------------------------------------------------------------------------
CHASE MONEY MARKET FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
<S> <C> <C>
- -------------------------------------------------------------------------------------
Money Market Instruments -- 99.3%
- -------------------------------------------------------------------------------------
U.S. Government Agency Security -- 3.2%
---------------------------------------
$ 10,000 Federal Home Loan Bank, DN, 6.13%, 12/22/00 $9,428
(Cost $9,428)
State And Municipal Obligation -- 1.7%
--------------------------------------
5,000 Texas State, Taxable, Veterans Housing Assistance, Ser.
A-2, FRDN, 6.50%, 01/05/00 5,000
(Cost $5,000)
Corporate Notes & Bonds -- 49.0%
--------------------------------
Asset Backed Securities -- 2.0%
Beta Finance Corp., LTD., (Channel Islands), MTN, #,
2,000 5.20%, 03/01/00 2,000
3,000 5.27%, 05/15/00 3,000
1,000 CC USA Inc., (Centauri Corp.), MTN, #, 5.68%, 06/15/00 1,000
------
6,000
Automotive -- 12.2%
3,000 Chrysler Financial Co., LLC, MTN, 5.85%, 05/15/00 3,008
10,000 Ford Motor Credit Co., MTN, FRN, 5.74%, 08/18/00 9,996
10,000 General Motors Acceptance Corp., MTN, FRN, 6.46%,
11/09/00 10,024
2,000 PACCAR Financial Corp., MTN, 6.23%, 03/15/00 2,004
Toyota Motor Credit Corp., MTN,
3,000 5.76%, 07/06/00 3,000
4,000 FRN, 5.80%, 08/18/00 4,000
4,000 FRN, 5.81%, 10/12/00 4,000
------
36,032
Banking -- 8.1%
American Express Centurion Bank, FRN,
1,000 5.85%, 05/16/00 1,000
4,000 5.85%, 09/29/00 4,000
12,000 Bank of New York Co., Inc., MTN, FRN, 6.09%, 06/05/00 11,997
U.S. Central Credit Union, MTN,
2,000 5.08%, 04/19/00 2,000
5,000 5.14%, 04/24/00 5,000
------
23,997
Computers/Computer Hardware -- 0.7%
2,000 IBM Credit Corp., MTN, 5.90%, 08/07/00 2,000
Financial Services -- 14.9%
5,000 Bollingbrent LTD Partnership, FRN, 6.59%, 01/06/00 5,000
10,000 CIT Group, Inc., MTN, FRN, 5.80%, 09/15/00 9,995
1,000 Commercial Credit Group Inc., 6.13%, 03/01/00 1,002
Goldman Sachs Group LP, FRN, #,
6,000 6.26%, 01/12/01 6,000
3,000 6.31%, 01/26/00 3,000
International Lease Finance Corp.,
1,500 6.20%, 05/01/00 1,503
5,000 MTN, 6.69%, 04/03/00 5,017
Merrill Lynch & Co., Inc., MTN,
1,000 5.56%, 06/30/00 1,000
5,000 FRN, 6.07%, 08/14/00 4,998
2,000 FRN, 6.46%, 08/03/00 2,003
5,000 Morgan Stanley Dean Witter & Co., MTN, FRN, 6.67%,
11/13/00 5,025
------
44,543
</TABLE>
See notes to financial statements.
32
<PAGE>
CHASE MONEY MARKET FUND
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
<S> <C> <C>
- ---------------------------------------------------------------------------------------
Money Market Instruments -- Continued
- ---------------------------------------------------------------------------------------
Machinery & Engineering Equipment -- 6.7%
Caterpillar Financial Services Corp., MTN,
$ 2,250 5.80%, 03/15/00 $ 2,252
7,500 FRN, 6.21%, 06/08/00 7,503
10,000 John Deere Capital Corp., MTN, FRN, 6.43%, 11/09/00 10,021
-------
19,776
Office Equipment -- 0.7%
2,000 Xerox Credit Corp., MTN, 5.83%, 05/08/00 1,999
Retailing -- 1.0%
Wal-Mart Stores Inc.,
2,000 5.65%, 02/01/00 2,001
1,000 5.85%, 06/01/00 1,001
-------
3,002
Telecommunications -- 2.0%
6,000 AT&T Corp., FRN, #, 6.14%, 07/13/00 5,997
Utilities -- 0.7%
2,000 National Rural Utilities Co., MTN, FRN, 5.81%, 09/08/00 2,000
- ---------------------------------------------------------------------------------------
Total Corporate Notes & Bonds 145,346
(Cost $145,346)
-----------------------------------------------------------------------
Discount Commercial Paper -- 31.0%
----------------------------------
Asset Backed Securities -- 5.7%
2,836 Alpine Securitization, 6.37%, 02/22/00 2,810
10,000 Blue Ridge Asset Funding Corp., 6.20%, 02/15/00 9,924
4,218 Quincy Capital Corp., 6.07%, 02/04/00 4,194
-------
16,928
Banking -- 2.3%
7,000 Citibank Capital Markets Assets, LLC, 6.10%, 02/25/00 6,936
Chemicals -- 4.0%
12,000 E.I. Dupont de Nemours Co., 5.87%, 03/10/00 11,868
Diversified -- 4.0%
General Electric Capital Corp.,
7,000 5.95%, 02/28/00 6,934
5,000 6.04%, 03/17/00 4,938
-------
11,872
Entertainment/Leisure -- 1.0%
3,000 Walt Disney Co., #, 5.34%, 02/02/00 2,986
Financial Services -- 7.9%
5,000 Associates Corp. of North America, 5.86%, 02/08/00 4,970
9,000 Cargill Global Funding PLC, #, 5.58%, 01/13/00 8,985
3,482 Kitty Hawk Funding Corp., #, 6.03%, 02/09/00 3,460
6,000 Nationwide Building Society, (United Kingdom), 5.49%,
01/14/00 5,988
-------
23,403
Food/Beverage Products -- 1.7%
5,000 Archer Daniels Midland Co., 5.89%, 04/03/00 4,926
Insurance -- 3.4%
10,000 Allstate Corp., #, 5.89%, 02/15/00 9,928
Metals/Mining -- 1.0%
3,000 Rio Tinto America Inc., 5.88%, 01/21/00 2,990
- ---------------------------------------------------------------------------------------
Total Discount Commercial Paper 91,837
(Cost $91,837)
- ---------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
33
<PAGE>
CHASE MONEY MARKET FUND
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
Principal
Amount Issuer Value
- ----------------------------------------------------------------------------------
Money Market Instruments -- Continued
- ----------------------------------------------------------------------------------
Certificates Of Deposit -- 11.5%
--------------------------------
$ 10,000 Banco Popolare di Milano, (Italy), 6.02%, 02/22/00 $ 10,000
5,000 Bayerische Landesbank, (Germany), FRN, 6.39%,
12/15/00 4,996
3,000 Commerzbank AG, (Germany), 5.12%, 04/25/00 2,999
5,000 First Union National Bank, FRN, 6.27%, 09/25/00 5,000
10,000 Landesbank Baden-Wuerttemberg, (Principal in Euro),
(Germany), 6.04%, 03/06/00 10,001
1,000 Royal Bank of Canada, (Canada), 5.12%, 03/20/00 1,000
------------------------------------------------------------------
Total Certificates Of Deposit 33,996
(Cost $33,996)
------------------------------------------------------------------
Repurchase Agreement -- 2.9%
----------------------------
8,469 Lehman Bros. Inc. Tri Party, 3.75%, due 01/03/00 8,469
(Dated 12/31/99, Proceeds $8,472, Secured by FNMA,
$8,323, 6.50% through 9.00%, due 05/18/25 through
12/18/25; Market Value $8,639)
(Cost $8,469)
- ----------------------------------------------------------------------------------
Total Investments -- 99.3% $294,076
(Cost $294,076)
- ----------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
34
<PAGE>
- --------------------------------------------------------------------------------
CHASE SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
<S> <C> <C>
- --------------------------------------------------------------------------------
Long-Term Investments -- 97.0%
- --------------------------------------------------------------------------------
U.S. Treasury Securities -- 36.0%
---------------------------------
U.S. Treasury Notes & Bonds,
$ 1,500 4.75%, 11/15/08 $ 1,323
4,800 5.50%, 12/31/00 4,772
1,200 5.50%, 03/31/03 1,170
1,000 5.63%, 02/15/06 957
1,000 5.75%, 11/30/02 985
900 5.88%, 11/30/01 894
250 5.88%, 09/30/02 247
1,100 6.88%, 05/15/06 1,119
----------------------------------------------------------------
Total U.S. Treasury Securities 11,467
(Cost $11,729)
----------------------------------------------------------------
U.S. Government Agency Securities -- 45.3%
------------------------------------------
Federal Farm Credit Bank,
1,500 5.25%, 05/01/02 1,455
1,500 5.88%, 07/02/01 1,488
1,330 MTN, 6.90%, 05/01/02 1,336
Federal Home Loan Bank,
1,500 5.13%, 04/17/01 1,476
1,300 6.79%, 04/17/01 1,303
1,500 Federal Home Loan Mortgage Corp., 6.25%, 10/15/02 1,486
Federal National Mortgage Association,
1,500 5.25%, 01/15/03 1,443
1,000 6.00%, 05/15/08 936
1,500 6.25%, 11/15/02 1,486
1,000 6.50%, 08/15/04 988
1,000 7.10%, 10/18/04 991
----------------------------------------------------------------
Total U.S. Government Agency Securities 14,388
(Cost $14,505)
----------------------------------------------------------------
Mortgage-Backed Pass Through Securities -- 15.7%
------------------------------------------------
Collateralized Mortgage Obligation -- 4.6%
1,483 Federal Home Loan Mortgage Corp., Ser. 2196, Class
MA, 7.00%, 11/15/06 1,470
Residential Mortgage-Backed Pass Through
Securities -- 11.1%
Federal National Mortgage Association,
1,070 Pool 190806, 6.00%, 05/01/01 1,057
2,552 Pool 251901, 6.50%, 08/01/13 2,476
-------
3,533
- --------------------------------------------------------------------------------
Total Mortgage-Backed Pass Through Securities 5,003
(Cost $5,121)
- --------------------------------------------------------------------------------
Total Long-Term Investments 30,858
(Cost $31,355)
- --------------------------------------------------------------------------------
Short-Term Investment -- 2.1%
- --------------------------------------------------------------------------------
U.S. Government Agency Security -- 2.1%
---------------------------------------
677 Federal Home Loan Bank, DN, 1.40%, 01/03/00 677
(Cost $677)
- --------------------------------------------------------------------------------
Total Investments -- 99.1% $31,535
(Cost $32,032)
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
35
<PAGE>
- --------------------------------------------------------------------------------
CHASE INTERMEDIATE TERM BOND FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<S> <C> <C>
- -------------------------------------------------------------------------------------
Long-Term Investments -- 84.1%
- -------------------------------------------------------------------------------------
U.S. Treasury Security -- 5.6%
------------------------------
$ 2,380 U.S. Treasury Bond, 6.25%, 08/15/23 $2,244
(Cost $2,389)
U.S. Government Agency Securities -- 10.7%
------------------------------------------
Federal Home Loan Bank,
1,400 5.40%, 03/01/04 1,326
500 7.00%, 04/02/07 497
Federal Home Loan Mortgage Corp.,
1,300 5.75%, 03/15/09 1,187
1,300 6.25%, 07/15/04 1,271
-------------------------------------------------------------------
Total U.S. Government Agency Securities 4,281
(Cost $4,373)
-------------------------------------------------------------------
Corporate Notes & Bonds -- 38.3%
--------------------------------
Automotive -- 3.1%
500 Ford Motor Credit Co., 7.38%, 10/28/09 494
750 TRW, Inc., #, 6.45%, 06/15/01 742
------
1,236
Banking -- 1.6%
750 U.S. Bank, NA, 5.70%, 12/15/08 657
Computers/Computer Hardware -- 1.8%
750 Electronic Data Systems Corp., 7.13%, 10/15/09 730
Consumer Products -- 2.0%
800 Procter & Gamble Co., 6.60%, 12/15/04 790
Diversified -- 2.0%
800 Tyco International Group, SA, (Luxembourg), 6.13%,
06/15/01 786
Electronics/Electrical Equipment -- 1.7%
700 General Electric Capital Corp., MTN, 5.91%, 05/07/01 693
Financial Services -- 9.8%
900 American Express Co., 8.50%, 08/15/01 924
600 Associates Corp. of North America, 6.63%, 05/15/01 598
600 International Lease Finance Corp., 5.95%, 06/01/01 592
800 Lehman Brothers Holdings Inc., 6.63%, 04/01/04 774
1,000 Merrill Lynch & Co., Inc., MTN, 6.10%, 12/10/01 985
------
3,873
Oil & Gas -- 5.8%
800 Amerada Hess Corp., 7.88%, 10/01/29 781
800 Conoco, Inc., 5.90%, 04/15/04 764
800 Occidental Petroleum Corp., 7.38%, 11/15/08 779
------
2,324
Retailing -- 2.5%
1,000 Wal-Mart Stores, Inc., 6.15%, 08/10/01 991
Telecommunications -- 3.0%
750 Metronet Communications Corp., (Canada), SUB, 0.00%,
06/15/03 592
700 U.S. West Capital Funding, Inc., 6.50%, 11/15/18 605
------
1,197
</TABLE>
See notes to financial statements.
36
<PAGE>
CHASE INTERMEDIATE TERM BOND FUND
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<S> <C> <C>
- --------------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------------------
Utilities -- 5.0%
$ 800 Empresa Nacional de Electricidad SA, Ser. B, (Chile),
8.50%, 04/01/09 $ 793
500 Hydro-Quebec, Ser.B, (Canada), MTN, 6.86%, 04/01/05 490
700 Israel Electronic Corp., (Israel), MTN, #, 8.25%, 10/15/09 698
-------
1,981
-------
--------------------------------------------------------------------------
Total Corporate Notes & Bonds 15,258
(Cost $15,498)
--------------------------------------------------------------------------
Mortgage-Backed Pass Through Securities -- 29.5%
------------------------------------------------
Residential Mortgage-Backed Pass Through
Securities -- 29.5%
Federal Home Loan Mortgage Corp.,
1,232 Gold Pool C17245, 7.00%, 11/01/28 1,192
2,320 Gold Pool E77074, 6.00%, 05/01/14 2,202
Federal National Mortgage Association,
59 Pool 124734, 6.50%, 03/01/00 59
287 Pool 250772, 7.00%, 12/01/03 287
362 Pool 398212, 6.50%, 02/01/13 351
1,609 Pool 398265, 6.00%, 03/01/28 1,472
942 Pool 442508, 6.00%, 09/01/13 895
Government National Mortgage Association,
439 Pool 436259, 6.50%, 03/15/28 412
762 Pool 448704, 7.50%, 10/15/27 754
434 Pool 462508, 6.50%, 02/15/28 407
282 Pool 476305, 6.50%, 05/15/28 265
281 Pool 478172, 6.50%, 06/15/28 264
1,497 Pool 491662, 7.00%, 10/15/29 1,446
749 Pool 498870, 7.00%, 10/15/29 723
1,097 Pool 504549, 7.00%, 09/15/29 1,059
--------------------------------------------------------------------------
Total Mortgage-Backed Pass Through Securities 11,788
(Cost $12,273)
- --------------------------------------------------------------------------------------------
Total Long-Term Investments 33,571
(Cost $34,533)
- --------------------------------------------------------------------------------------------
Short-Term Investment -- 14.6%
- --------------------------------------------------------------------------------------------
U.S. Government Agency Security -- 14.6%
----------------------------------------
5,822 Federal Home Loan Bank, DN, 1.40%, 01/03/00 5,822
(Cost $5,822)
- --------------------------------------------------------------------------------------------
Total Investments -- 98.7% $39,393
(Cost $40,355)
- --------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
37
<PAGE>
- --------------------------------------------------------------------------------
CHASE U.S. GOVERNMENT SECURITIES FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
Principal
Amount Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- 93.0%
- --------------------------------------------------------------------------------
U.S. Treasury Securities -- 33.6%
---------------------------------
U.S. Treasury Notes & Bonds,
$ 535 6.25%, 10/31/01 $ 535
350 6.50%, 08/31/01 351
675 7.13%, 02/15/23 703
850 8.75%, 05/15/17 1,015
----------------------------------------------------------------
Total U.S. Treasury Securities 2,604
(Cost $2,646)
----------------------------------------------------------------
U.S. Government Agency Securities -- 18.3%
------------------------------------------
Federal National Mortgage Association,
250 6.25%, 11/15/02 248
500 6.38%, 06/15/09 477
700 6.50%, 08/15/04 691
----------------------------------------------------------------
Total U.S. Government Agency Securities 1,416
(Cost $1,448)
----------------------------------------------------------------
Mortgage-Backed Pass Through Securities -- 41.1%
------------------------------------------------
Residential Mortgage-Backed Pass Through
Securities -- 41.1%
400 Federal Home Loan Mortgage Corp., Gold Pool E00766,
7.00%, 12/01/14 396
Federal National Mortgage Association,
300 Pool 252921, 7.50%, 11/01/14 302
650 Pool 511599, 8.00%, 12/01/29 656
467 Pool 523930, 8.00%, 11/01/29 470
650 Pool 525908, 7.00%, 12/01/29 629
Government National Mortgage Association,
400 Pool 434628, 8.00%, 12/15/29 404
325 Pool 510845, 7.50%, 12/15/29 321
----------------------------------------------------------------
Total Mortgage-Backed Pass Through Securities 3,178
(Cost $3,200)
- --------------------------------------------------------------------------------
Total Long-Term Investments 7,198
(Cost $7,294)
- --------------------------------------------------------------------------------
Short-Term Investment -- 6.3%
- --------------------------------------------------------------------------------
U.S. Government Agency Security -- 6.3%
---------------------------------------
484 Federal Home Loan Bank, DN, 1.40%, 01/03/00 484
(Cost $484)
- --------------------------------------------------------------------------------
Total Investments -- 99.3% $7,682
(Cost $7,778)
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
38
<PAGE>
- --------------------------------------------------------------------------------
CHASE INCOME FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<S> <C> <C>
- -----------------------------------------------------------------------------------
Long-Term Investments -- 86.4%
- -----------------------------------------------------------------------------------
U.S. Treasury Securities -- 11.5%
---------------------------------
U.S. Treasury Notes & Bonds,
$ 2,000 6.25%, 08/15/23 $1,886
5,000 8.13%, 08/15/19 - 5,697
-----------------------------------------------------------------
Total U.S. Treasury Securities 7,583
(Cost $7,894)
-----------------------------------------------------------------
U.S. Government Agency Securities -- 15.3%
------------------------------------------
Federal Home Loan Bank,
4,000 4.88%, 01/22/02 - 3,870
1,650 6.38%, 08/15/06 - 1,595
Federal National Mortgage Association,
1,500 6.38%, 06/15/09 1,432
1,750 6.50%, 08/15/04 1,728
1,500 Tennessee Valley Authority, 6.00%, 09/24/02 1,474
-----------------------------------------------------------------
Total U.S. Government Agency Securities 10,099
(Cost $10,388)
-----------------------------------------------------------------
Foreign Government Security -- 1.1%
-----------------------------------
750 Quebec Province, (Canada), 6.50%, 01/17/06 - 720
(Cost $735)
Corporate Notes & Bonds -- 27.3%
--------------------------------
Automotive -- 3.7%
1,000 Ford Motor Credit Co., 6.25%, 12/08/05 - 945
TRW, Inc., #,
750 6.45%, 06/15/01 743
800 7.75%, 06/01/29 750
------
2,438
Banking -- 5.0%
1,400 BankAmerica Corp., 6.20%, 02/15/06 - 1,320
Korea Development Bank, (South Korea),
700 6.50%, 11/15/02 - 680
700 7.13%, 09/17/01 - 695
700 U.S. Bank, NA, 5.70%, 12/15/08 - 613
------
3,308
Business Services -- 1.1%
750 Comdisco, Inc., 7.25%, 09/01/02 - 742
Diversified -- 2.1%
Tyco International Group, SA, (Luxembourg),
750 5.88%, 11/01/04 694
700 6.13%, 06/15/01 - 688
------
1,382
Financial Services -- 2.2%
750 Lehman Brothers Holdings Inc., 6.63%, 02/05/06 - 709
750 TXU Eastern Funding Co., (United Kingdom), #, 6.15%,
05/15/02 731
------
1,440
Food/Beverage Products -- 4.1%
2,000 Anheuser-Busch Companies, Inc., 6.75%, 08/01/03 - 1,988
750 Coca-Cola Enterprises, 7.13%, 09/30/09 - 733
------
2,721
</TABLE>
See notes to financial statements.
39
<PAGE>
CHASE INCOME FUND
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
Principal
Amount
(USD) Issuer Value
- -------------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------------------
Insurance -- 1.1%
$ 700 Conseco, Inc., 8.50%, 10/15/02 - $ 708
Oil & Gas -- 2.2%
1,500 Amerada Hess Corp., 7.88%, 10/01/29 - 1,463
Packaging -- 0.7%
500 Tenneco Packaging, Inc., 8.00%, 04/15/07 491
Retailing -- 1.0%
750 Kroger Co., 6.38%, 03/01/08 680
Telecommunications -- 2.5%
450 Metronet Communications Corp., (Canada), SUB, 0.00%,
06/15/03 355
800 Sprint Capital Corp., 6.13%, 11/15/08 - 725
600 U.S. West Capital Funding, Inc., 6.25%, 07/15/05 568
-------
1,648
Utilities -- 1.6%
600 Empresa Nacional de Electricidad SA, Ser. B, (Chile),
8.50%, 04/01/09 - 595
500 Israel Electronic Corp., (Israel), #, MTN 7.75%, 12/15/27 432
-------
1,027
------------------------------------------------------------------------
Total Corporate Notes & Bonds 18,048
(Cost $18,212)
------------------------------------------------------------------------
Mortgage-Backed Pass Through Securities -- 28.9%
------------------------------------------------
Residential Mortgage-Backed Pass Through
Securities -- 28.9%
Federal National Mortgage Association,
2,500 Pool 10940, 6.00%, 01/15/49 2,287
1,400 Pool 13975, 7.00%, 01/25/15 1,384
2,700 Pool 16475, 6.50%, 01/15/49 2,619
5,700 Pool 28668, 6.50%, 01/15/49 5,370
3,400 Pool 30037, 7.50%, 01/15/49 3,362
4,200 Pool 32767, 7.00%, 01/15/49 4,061
-------------------------------------------------------------------------
Total Mortgage-Backed Pass Through Securities 19,083
(Cost $19,249)
-------------------------------------------------------------------------
Asset Backed Securities -- 2.3%
-------------------------------
800 MBNA Master Credit Card Trust, Ser. 1999-M, Class B,
6.80%, 04/16/07 786
750 Residential Asset Securities Corp., Ser. 1999-KS4, Class
AI3, 6.94%, 04/25/25 741
-------------------------------------------------------------------------
Total Asset Backed Securities 1,527
(Cost $1,547)
- -------------------------------------------------------------------------------------------
Total Long-Term Investments 57,060
(Cost $58,025)
- -------------------------------------------------------------------------------------------
Short-Term Investment -- 42.1%
- -------------------------------------------------------------------------------------------
U.S. Government Agency Security -- 42.1%
----------------------------------------
27,791 Federal Home Loan Bank, DN, 1.40%, 01/03/00 - 27,789
(Cost $27,789)
- -------------------------------------------------------------------------------------------
Total Investments -- 128.5% $84,849
(Cost $85,814)
- -------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
40
<PAGE>
- --------------------------------------------------------------------------------
CHASE BALANCED FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
<S> <C> <C>
- --------------------------------------------------------------------------------
Long-Term Investments -- 93.4%
- --------------------------------------------------------------------------------
Common Stock -- 53.6%
---------------------
Airlines -- 0.3%
20 Southwest Airlines, Inc $ 331
Biotechnology--2.8%
33 Amgen, Inc. * 1,972
9 Biogen, Inc. * 746
5 Genzyme Corp. (General Division) * 203
-----
2,921
Broadcasting/Cable -- 0.3%
3 Clear Channel Communications, Inc. * 272
Computer Networks -- 1.8%
17 Cisco Systems, Inc. * 1,840
Computer Software -- 3.8%
4 Citrix Systems, Inc. * 535
30 Microsoft Corp. * 3,470
-----
4,005
Computers/Computer Hardware -- 4.7%
21 Dell Computer Corp. * 1,049
22 EMC Corp. * 2,391
14 International Business Machines Corp. 1,490
-----
4,930
Consumer Products -- 1.5%
10 Gillette Co. 398
11 Procter & Gamble Co. 1,159
-----
1,557
Diversified -- 3.2%
18 General Electric Co. 2,843
12 Tyco International LTD (Bermuda) 467
-----
3,310
Electronics/Electrical Equipment -- 1.1%
12 Solectron Corp. * 1,103
Financial Services -- 3.0%
4 American Express Co. 582
25 Charles Schwab Corp. 962
8 Merrill Lynch & Co., Inc. 676
6 Morgan Stanley Dean Witter & Co. 896
-----
3,116
Food/Beverage Products -- 1.4%
3 Anheuser-Busch Companies, Inc. 188
14 Coca-Cola, Co. 794
12 PepsiCo, Inc. 436
-----
1,418
Health Care/Health Care Services -- 0.4%
4 Guidant Corp. * 203
5 Medtronic, Inc. 186
-----
389
Insurance -- 0.5%
5 American International Group, Inc. 558
Internet Services/Software -- 1.8%
25 America Online, Inc. * 1,886
Machinery & Engineering Equipment -- 2.0%
17 Applied Materials, Inc. * 2,132
</TABLE>
See notes to financial statements.
41
<PAGE>
CHASE BALANCED FUND
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
<S> <C> <C>
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Multi-Media -- 0.9%
13 Time Warner, Inc. $ 945
Pharmaceuticals -- 5.3%
9 Abbot Laboratories 315
10 American Home Products Corp. 404
12 Bristol-Myers Squibb Co. 757
8 Eli Lilly & Co. 545
8 Johnson & Johnson 733
15 Merck & Co., Inc. 1,020
23 Pfizer, Inc. 740
12 Schering-Plough Corp. 513
7 Warner-Lambert Co. 586
------
5,613
Restaurants/Food Services -- 0.2%
5 McDonald's Corp. 210
Retailing -- 5.4%
12 Bed Bath & Beyond, Inc. * 414
7 Best Buy Co., Inc. * 374
24 Gap, Inc. 1,104
13 Home Depot, Inc. 913
33 Kroger Co. * 631
32 Wal-Mart Stores, Inc. 2,230
------
5,666
Semi-Conductors -- 5.4%
28 Intel Corp. 2,297
10 KLA-Tencor Corp. * 1,158
15 Novellus Systems, Inc. * 1,844
4 Texas Instruments, Inc. 388
------
5,687
Telecommunications -- 5.1%
27 AT&T Corp. 1,363
7 Bell Atlantic Corp. 439
9 BellSouth Corp. 407
5 GTE Corp. 333
12 MCI WorldCom, Inc. * 647
6 Nextel Communications, Inc., Class A * 578
18 SBC Communications, Inc. 901
6 Sprint Corp. (FON Group) 385
6 Vodafone AirTouch PLC, ADR (United Kingdom) 309
------
5,362
Telecommunications Equipment -- 2.7%
21 Lucent Technologies, Inc. 1,603
9 Motorola, Inc. 1,277
------
2,880
- --------------------------------------------------------------------------------
Total Common Stock 56,131
(Cost $31,009)
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
42
<PAGE>
CHASE BALANCED FUND
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
<S> <C> <C>
- -------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------------
U.S. Treasury Securities -- 15.8%
---------------------------------
U.S. Treasury Notes & Bonds,
2,500 5.25%, 05/15/04 $2,395
4,200 5.63%, 02/15/06 4,018
1,000 5.88%, 11/15/05 971
7,035 6.25%, 08/15/23 6,633
2,000 6.38%, 03/31/01 2,004
625 6.50%, 11/15/26 609
---------------------------------------------------------------------
Total U.S. Treasury Securities 16,630
(Cost $17,800)
---------------------------------------------------------------------
U.S. Government Agency Securities -- 4.2%
-----------------------------------------
1,000 Federal Home Loan Bank, 4.88%, 01/22/02 968
3,650 Federal National Mortgage Association, 6.38%, 06/15/09 3,485
---------------------------------------------------------------------
Total U.S. Government Agency Securities 4,453
(Cost $4,594)
---------------------------------------------------------------------
Corporate Notes & Bonds -- 19.8%
--------------------------------
Automotive -- 2.8%
1,425 DaimlerChrysler North America Holdings Corp., MTN,
6.63%, 09/21/01 1,418
225 Ford Motor Credit Co., 6.25%, 12/08/05 213
1,500 General Motors Acceptance Corp., 5.85%, 01/14/09 1,325
------
2,956
Banking -- 2.2%
1,950 Bank One Corp., 6.40%, 08/01/02 1,917
400 BankAmerica Corp., 6.20%, 02/15/06 377
------
2,294
Biotechnology -- 0.9%
1,100 Monsanto Co., #, 5.88%, 12/01/08 984
Computers/Computer Hardware -- 1.4%
1,425 IBM Credit Corp., MTN, 6.35%, 08/30/01 1,413
Consumer Products -- 0.3%
325 Procter & Gamble Co., 6.45%, 01/15/26 287
Financial Services -- 4.4%
20 American General Finance Corp., MTN, 6.04%, 07/02/01 20
500 Associates Corp. of North America, MTN, 7.52%,
03/29/00 502
1,625 Household Finance Corp., 5.88%, 09/25/04 1,533
1,265 International Lease Finance Corp., MTN, 8.35%, 02/04/02 1,296
1,330 Merrill Lynch & Co., Inc., MTN, 5.71%, 01/15/02 1,299
------
4,650
Food/Beverage Products -- 0.5%
500 Anheuser-Busch Companies, Inc., 6.75%, 08/01/03 497
Machinery & Engineering Equipment -- 1.3%
1,425 Caterpillar Financial Services Corp., MTN, 5.89%,
06/17/02 1,391
Oil & Gas -- 2.0%
2,200 BP Amoco PLC, (United Kingdom), 6.50%, 08/01/07 2,106
Pharmaceuticals -- 0.5%
600 Abbott Laboratories, 5.60%, 10/01/03 570
</TABLE>
See notes to financial statements.
43
<PAGE>
CHASE BALANCED FUND
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
<S> <C> <C>
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Restaurants/Food Services -- 0.4%
450 McDonald's Corp., 7.05%, 11/15/25 $ 408
Retailing -- 3.1%
1,500 Safeway, Inc., 7.25%, 09/15/04 1,486
1,775 Wal-Mart Stores, Inc., 6.55%, 08/10/04 1,745
--------
3,231
--------------------------------------------------------------------
Total Corporate Notes & Bonds 20,787
(Cost $21,346)
- --------------------------------------------------------------------------------
Total Long-Term Investments 98,001
(Cost $74,749)
- --------------------------------------------------------------------------------
Short-Term Investments -- 6.4%
- ---------------------------------------------------------------------------------
Repurchase Agreement -- 6.4%
----------------------------
6,763 Greenwich Capital Markets, Inc., in a joint trading
account at 3.50%, due 01/03/00 (Dated 12/31/99,
Proceeds $6,765, Secured by FHLMC, $7,071, 5.75%,
due 09/15/22; Market Value $6,903) 6,763
(Cost $6,763)
- --------------------------------------------------------------------------------
Total Investments -- 99.8% $104,764
(Cost $81,512)
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
44
<PAGE>
- --------------------------------------------------------------------------------
CHASE EQUITY INCOME FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
<S> <C> <C>
- --------------------------------------------------------------------------------
Long-Term Investments -- 92.3%
- --------------------------------------------------------------------------------
Common Stock -- 92.3%
---------------------
Automotive -- 1.8%
32 Ford Motor Co. $1,689
21 General Motors Corp. 1,526
------
3,215
Banking -- 4.6%
80 Bank of New York Co., Inc. 3,184
14 J.P. Morgan & Co. 1,798
44 SunTrust Banks, Inc. 3,028
------
8,010
Biotechnology -- 1.0%
51 Monsanto Co. 1,806
Chemicals -- 2.5%
15 Dow Chemical Co. 2,044
34 E.I. DuPont de Nemours Co. 2,227
------
4,271
Computer Networks -- 1.6%
26 Cisco Systems, Inc. * 2,828
Computer Software -- 3.7%
56 Microsoft Corp. * 6,480
Computers/Computer Hardware -- 4.6%
20 Hewlett-Packard Co. 2,267
53 International Business Machines Corp. 5,735
------
8,002
Consumer Products -- 3.5%
31 Gillette Co. 1,269
26 Philip Morris Companies, Inc. 603
39 Procter & Gamble Co. 4,272
------
6,144
Diversified -- 4.2%
47 General Electric Co. 7,344
Financial Services -- 8.7%
23 American Express Co. 3,874
93 Citigroup, Inc. 5,179
23 Merrill Lynch & Co., Inc. 1,954
28 Morgan Stanley Dean Witter & Co. 3,997
------
15,004
Food/Beverage Products -- 5.2%
29 Anheuser-Busch Companies, Inc. 2,027
34 Coca-Cola, Co. 1,986
32 PepsiCo, Inc. 1,124
98 Sysco Corp. 3,866
------
9,003
Insurance -- 3.1%
50 American International Group, Inc. 5,383
Machinery & Engineering Equipment -- 1.6%
63 Dover Corp. 2,859
Manufacturing -- 0.7%
22 Honeywell International Inc. 1,281
Multi-Media -- 0.5%
31 The Walt Disney Co. 916
</TABLE>
See notes to financial statements.
45
<PAGE>
CHASE EQUITY INCOME FUND
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
<S> <C> <C>
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Oil & Gas -- 9.4%
49 BP Amoco PLC, ADR (United Kingdom) $ 2,928
28 Chevron Corp. 2,416
56 Enron Corp. 2,476
41 Exxon Mobil Corp. 3,307
46 Royal Dutch Petroleum Co., N.Y. Registered Shares
(Netherlands) 2,754
8 Schlumberger LTD 467
32 Texaco, Inc. 1,711
2 Transocean Sedco Forex Inc. 54
-------
16,113
Paper/Forest Products -- 0.7%
23 International Paper Co. 1,281
Pharmaceuticals -- 9.9%
45 Abbot Laboratories 1,645
41 American Home Products Corp. 1,629
52 Bristol-Myers Squibb Co. 3,306
44 Eli Lilly & Co. 2,933
20 Johnson & Johnson 1,853
34 Merck & Co., Inc. 2,253
104 Pfizer, Inc. 3,379
-------
16,998
Retailing -- 4.1%
38 Home Depot, Inc. 2,571
67 Wal-Mart Stores, Inc. 4,597
-------
7,168
Semi-Conductors -- 5.0%
53 Intel Corp. 4,395
45 Texas Instruments, Inc. 4,340
-------
8,735
Shipping/Transportation -- 0.9%
42 Norfolk Southern Corp. 851
17 Union Pacific Corp. 733
-------
1,584
Telecommunications -- 8.1%
47 AT&T Corp. 2,367
30 Bell Atlantic Corp. 1,847
43 BellSouth Corp. 1,994
25 GTE Corp. 1,757
40 MCI WorldCom, Inc. * 2,117
81 SBC Communications, Inc. 3,956
-------
14,038
Telecommunications Equipment -- 4.8%
68 Lucent Technologies, Inc. 5,075
23 Motorola, Inc. 3,343
-------
8,418
Utilities -- 2.1%
55 DQE, Inc. 1,894
35 Duke Energy Corp. 1,744
-------
3,638
- --------------------------------------------------------------------------------
Total Long-Term Investments 160,519
(Cost $98,045)
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
46
<PAGE>
CHASE EQUITY INCOME FUND
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
<S> <C> <C>
- ----------------------------------------------------------------------------------
Short-Term Investments -- 8.7%
- ----------------------------------------------------------------------------------
Repurchase Agreement -- 8.7%
----------------------------
$ 15,040 Greenwich Capital Markets, Inc., in a joint trading
account at 3.50%, due 01/03/00, (Dated 12/31/99,
Proceeds $15,044, Secured by FHLMC, $16,156, 5.75%
through 6.00%, due 09/15/22 through 02/15/27; Mar-
ket Value $15,344) $ 15,040
(Cost $15,040)
- ----------------------------------------------------------------------------------
Total Investments -- 101.0% $175,559
(Cost $113,085)
- ----------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
47
<PAGE>
- --------------------------------------------------------------------------------
CHASE SMALL CAPITALIZATION FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
<S> <C> <C>
- --------------------------------------------------------------------------------
Long-Term Investments -- 94.6%
- --------------------------------------------------------------------------------
Common Stock -- 94.6%
---------------------
Advertising -- 0.6%
5 Catalina Marketing Corp. * $ 567
Aerospace -- 0.9%
47 AAR Corp. 847
Automotive -- 2.5%
40 Lithia Motors, Inc., Class A * 706
50 O'Reilly Automotive, Inc. * 1,065
35 Tower Automotive, Inc. * 540
-----
2,311
Banking -- 5.0%
18 Amcore Financial, Inc. 432
14 Chittenden Corp. 415
23 City National Corp. 764
20 Commerce Bancorp., Inc. 793
33 Cullen/Frost Bankers, Inc. 856
10 First Washington Bancorp, Inc. 151
15 Investors Financial Services Corp. 672
5 ISB Financial Corp. 72
11 ITLA Capital Corp. * 137
20 Trustmark Corp. 428
-----
4,720
Broadcasting/Cable -- 1.9%
24 Westwood One, Inc. * 1,807
Business Services -- 6.0%
30 ACNielsen Corp. * 726
39 Iron Mountain, Inc. * 1,533
67 NFO Worldwide, Inc. * 1,506
70 Profit Recovery Group International * 1,860
-----
5,625
Chemicals -- 2.0%
59 Spartech Corp. 1,911
Computer Networks -- 5.9%
28 Black Box Corp. * 1,846
26 Micros Systems, Inc. * 1,946
46 National Computer Systems Inc. 1,723
-----
5,515
Computer Software -- 2.3%
75 Activision, Inc. * 1,141
31 Dendrite International Inc. * 1,050
-----
2,191
Construction -- 0.7%
15 Dycom Industries Inc. * 643
Construction Materials -- 1.8%
79 Dal-Tile International Inc. * 796
28 Elcor Corp. 846
-----
1,642
</TABLE>
See notes to financial statements.
48
<PAGE>
CHASE SMALL CAPITALIZATION FUND
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
<S> <C> <C>
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Electronics/Electrical Equipment--12.5%
43 Artesyn Technologies, Inc. * $ 896
37 CTS Corp. 2,810
24 Hadco Corp. * 1,244
21 OAK Industries, Inc. * 2,229
26 PerkinElmer, Inc. 1,076
14 Technitrol, Inc. 641
44 Varian, Inc. * 981
62 Vishay Intertechnology, Inc. * 1,947
------
11,824
Engineering Services -- 0.5%
14 Jacobs Engineering Group, Inc. * 466
Entertainment/Leisure -- 2.5%
61 Cinar Corp., Class B (Canada) * 1,505
39 Station Casinos, Inc. * 868
------
2,373
Financial Services -- 0.3%
2 SEI Investments Co. 244
Food/Beverage Products -- 0.6%
23 Performance Food Group Co. * 551
Health Care/Health Care Services -- 8.3%
30 Cooper Companies, Inc. 895
24 Datascope Corp. 948
34 Hooper Holmes, Inc. 868
45 MedQuist, Inc. * 1,151
44 Molecular Devices Corp. * 2,300
49 Osteotech, Inc. * 659
40 Ventana Medical Systems * 983
------
7,804
Insurance -- 2.5%
16 Annuity and Life Re, LTD (Bermuda) 423
9 Arthur J. Gallagher & Co. 550
15 Brown & Brown, Inc. 590
26 Delphi Financial Group, Inc., Class A * 785
------
2,348
Machinery & Engineering Equipment -- 6.0%
19 Cognex Corp. * 749
38 Gerber Scientific, Inc. 823
44 PRI Automation, Inc. * 2,970
19 Zebra Technologies Corp., Class A * 1,088
------
5,630
Manufacturing -- 3.3%
10 Optical Coating Laboratory, Inc. 3,064
Oil & Gas -- 3.9%
24 Atwood Oceanics * 939
48 Louis Dreyfus Natural Gas * 862
60 Pride International, Inc. * 879
16 St. Mary Land & Exploration 407
46 Vintage Petroleum, Inc. * 551
------
3,638
</TABLE>
See notes to financial statements.
49
<PAGE>
CHASE SMALL CAPITALIZATION FUND
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
<S> <C> <C>
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Pharmaceuticals -- 4.2%
50 Advance Paradigm, Inc. * $ 1,082
10 Idec Pharmaceuticals Corp. * 983
33 King Pharmaceuticals, Inc. * 1,850
-------
3,915
Real Estate Investment Trust -- 1.3%
39 Alexandria Real Estate Equities 1,234
Restaurants/Food Services -- 1.4%
63 Jack in the Box, Inc. * 1,304
Retailing -- 6.0%
26 Ames Department Stores, Inc. * 761
53 BJ's Wholesale Club Inc. * 1,921
40 Chico's FAS, Inc. * 1,513
22 Pacific Sunwear of California * 708
34 Wild Oats Markets, Inc. * 752
-------
5,655
Semi-Conductors -- 3.9%
76 Actel Corp. * 1,831
16 Cree Research, Inc. * 1,332
7 Dallas Semiconductor Corp. 477
-------
3,640
Shipping/Transportation -- 1.1%
16 C.H. Robinson Worldwide, Inc. 634
17 MS Carriers, Inc. * 411
-------
1,045
Telecommunications -- 1.1%
36 Price Communications Corp. * 990
Telecommunications Equipment -- 3.3%
16 Antec Corp. * 582
17 Comverse Technology, Inc. * 2,497
-------
3,079
Utilities -- 2.3%
19 AGL Resources, Inc. 315
22 American States Water Co. 780
3 E'town Corp. 181
17 Laclede Gas Co. 360
17 Northwest Natural Gas Co. 365
5 United Water Resources, Inc. 173
-------
2,174
- --------------------------------------------------------------------------------
Total Long-Term Investments 88,757
(Cost $64,820)
- --------------------------------------------------------------------------------
Short-Term Investments -- 5.4%
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
<S> <C> <C>
Repurchase Agreement -- 5.4%
----------------------------
$5,020 Greenwich Capital Markets, Inc., in a joint trading
account at 3.50%, due 01/03/00, (Dated 12/31/99,
Proceeds $5,021, Secured by FNMA, $4,974, FRN, due
07/18/27; Market Value $5,121) 5,020
(Cost $5,020)
- --------------------------------------------------------------------------------
Total Investments -- 100.0% $93,777
(Cost $69,840)
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
50
<PAGE>
Portfolio of Investments (Continued)
INDEX:
* -- Non-income producing security.
- - -- All or portion of this security is segregated for delayed delivery
securities.
# -- Security may only be sold to qualified institutional buyers.
ADR -- American Depositary Receipt.
Discount
Commercial
Paper -- The rate shown is the effective yield at the date of purchase.
DN -- Discount Note. The rate shown is the effective yield at the date
of purchase.
FHLMC -- Federal Home Loan Mortgage Corporation.
FNMA -- Federal National Mortgage Association.
FRDN -- Floating Rate Demand Note. The maturity date shown is the next
interest rate reset date; the rate shown is the rate in effect at
December 31, 1999.
FRN -- Floating Rate Note. The maturity date shown is actual maturity
date; the rate shown is the rate in effect at December 31, 1999.
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 December 31, 1999.
51
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES As of December 31, 1999
- --------------------------------------------------------------------------------
(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) .................... $294,076 $31,535 $39,393 $7,682
Cash .............................. -- 1 2 --
Receivables:
Fund shares sold ................. 1,095 2 196 1
Interest/Dividends ............... 1,861 332 414 84
Expense reimbursement
from Distributor ................. -- -- -- 15
- -------------------------------------------------------------------------------------------
Total Assets ................... 297,032 31,870 40,005 7,782
- -------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
To Custodian ..................... 3 -- -- 3
Fund shares redeemed ............. 180 -- -- --
Dividends payable ................ 361 3 10 1
Accrued liabilities: (Note 2)
Investment advisory fees ......... 59 3 5 --
Administration fees .............. 37 4 5 --
Custody and accounting
fees ............................. 14 16 22 8
Other ............................ 98 16 68 31
- -------------------------------------------------------------------------------------------
Total Liabilities .............. 752 42 110 43
- -------------------------------------------------------------------------------------------
NET ASSETS:
Paid in capital ................... 296,279 32,507 41,724 8,168
Accumulated undistributed
net investment income ............ 3 2 3 --
Accumulated net realized
loss on investments ............... (2) (184) (870) (333)
Net unrealized depreciation
of investments .................... -- (497) (962) (96)
- -------------------------------------------------------------------------------------------
Net Assets ..................... $296,280 $31,828 $39,895 $7,739
- -------------------------------------------------------------------------------------------
Shares of beneficial interest
outstanding ($.001 par value;
unlimited number of shares
authorized)
Premier Shares .................... 296,120 2,636 3,270 599
Investor Shares ................... 159 6 38 4
Net Asset Value, maximum
offering and redemption
price per share
Premier Shares $ 1.00 $ 12.05 $ 12.06 $12.84
Investor Shares ................... $ 1.00 $ 12.04 $ 12.06 $12.84
Cost of Investments ................ $294,076 $32,032 $40,355 $7,778
- -------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
52
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES As of December 31, 1999
(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) ........................ $84,849 $104,764 $175,559 $93,777
Cash .................................. 4 2 1 1
Receivables:
Investment securities sold ........... -- -- -- 482
Fund shares sold ..................... 7 186 38 75
Interest/Dividends ................... 733 809 142 33
- -------------------------------------------------------------------------------------------
Total Assets ....................... 85,593 105,761 175,740 94,368
- -------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities
purchased ............................ 19,249 -- 75 263
Fund shares redeemed ................. 200 632 1,632 195
Dividends payable .................... 18 -- -- --
Accrued liabilities: (Note 2)
Investment advisory fees ............. 17 53 99 45
Administration fees .................. 8 13 22 11
Custody and accounting fees .......... 8 17 22 13
Other ................................ 40 100 87 96
- -------------------------------------------------------------------------------------------
Total Liabilities .................. 19,540 815 1,937 623
- -------------------------------------------------------------------------------------------
NET ASSETS:
Paid in capital ....................... 69,625 81,987 111,835 78,465
Accumulated undistributed
net investment income ................. 22 149 -- --
Accumulated net realized loss
on investments ........................ (2,629) (442) (506) (8,657)
Net unrealized appreciation
(depreciation) of investments ......... (965) 23,252 62,474 23,937
- -------------------------------------------------------------------------------------------
Net Assets ......................... $66,053 $104,946 $173,803 $93,745
- -------------------------------------------------------------------------------------------
Shares of beneficial interest
outstanding ($.001 par value;
unlimited number of shares
authorized)
Premier Shares ........................ 3,503 2,681 3,415 4,109
Investor Shares ....................... 27 45 75 40
Net Asset Value, maximum
offering and redemption
price per share
Premier Shares ........................ $ 18.71 $ 38.50 $ 49.80 $ 22.60
Investor Shares ....................... $ 18.72 $ 38.46 $ 49.83 $ 22.51
Cost of Investments .................... $85,814 $ 81,512 $113,085 $69,840
- -------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
53
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES As of December 31, 1999
(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) ........................... $186,884 $334,025
Receivable for fund shares sold .......... 162 985
- --------------------------------------------------------------------------------
Total Assets .......................... 187,046 335,010
- --------------------------------------------------------------------------------
LIABILITIES:
Payable for fund shares redeemed ......... 42 159
Accrued liabilities: (Note 2)
Administration fees ..................... 15 27
Other ................................... 100 81
- --------------------------------------------------------------------------------
Total Liabilities ..................... 157 267
- --------------------------------------------------------------------------------
Paid in capital .......................... 126,272 194,432
Accumulated net realized gain (loss)
on investments ........................... 2,227 (877)
Net unrealized appreciation
of investments ........................... 58,390 141,188
- --------------------------------------------------------------------------------
Net Assets ............................ $186,889 $334,743
- --------------------------------------------------------------------------------
Shares of beneficial interest
outstanding ($.001 par value;
unlimited number of shares
authorized)
Premier Shares ........................... 5,607 4,696
Investor Shares .......................... 191 221
Net Asset Value, maximum
offering and redemption
price per share
Premier Shares ........................... $ 32.24 $ 68.09
Investor Shares .......................... $ 32.19 $ 67.85
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
54
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the year ended December 31, 1999
- --------------------------------------------------------------------------------
(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 ..................... $12,274 $1,777 $2,240 $ 368
- ----------------------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees ........... 693 159 184 33
Administration fees ................ 347 48 55 10
Distribution fees .................. -- -- 1 --
Custody and accounting
fees ............................... 53 53 60 38
Printing and postage ............... 70 17 20 6
Professional fees .................. 42 24 35 13
Registration expenses .............. 64 20 38 23
Transfer agent fees ................ 57 48 51 44
Trustees' fees ..................... 8 1 1 --
Other .............................. 26 4 9 9
- ----------------------------------------------------------------------------------------------
Total expenses .................. 1,360 374 454 176
- ----------------------------------------------------------------------------------------------
Less amounts waived
(Note 2D) .......................... 187 119 160 43
Less expense
reimbursements ..................... 18 16 17 84
- ----------------------------------------------------------------------------------------------
Net expenses ..................... 1,155 239 277 49
- ----------------------------------------------------------------------------------------------
Net investment
income .......................... 11,119 1,538 1,963 319
- ----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized loss on
investment transactions ............ (1) (174) (865) (333)
Change in net unrealized
appreciation/depreciation
of investments ..................... -- (1,131) (1,474) (128)
- ----------------------------------------------------------------------------------------------
Net realized and unrealized loss
on investments ..................... (1) (1,305) (2,339) (461)
- ----------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets from operations ......... $11,118 $ 233 $ (376) $(142)
- ----------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
55
<PAGE>
STATEMENT OF OPERATIONS For the year ended December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Equity Small
Income Balanced Income Capitalization
Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .............................. $ 3,960 $ 2,467 $ 399 $ 225
Dividend .............................. -- 239 2,116 424
Foreign taxes withheld ................ -- -- (19) --
- ------------------------------------------------------------------------------------------
Total investment income ............ 3,960 2,706 2,496 649
- ------------------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees .............. 328 635 1,128 557
Administration fees ................... 98 127 226 111
Distribution fees ..................... -- 3 4 1
Custody and accounting fees ........... 62 72 78 64
Printing and postage .................. 26 30 61 35
Professional fees ..................... 28 36 38 36
Registration expenses ................. 20 52 45 48
Transfer agent fees ................... 43 58 66 60
Trustees' fees ........................ 2 3 5 3
Other ................................. 13 14 19 15
- ------------------------------------------------------------------------------------------
Total expenses ..................... 620 1,030 1,670 930
- ------------------------------------------------------------------------------------------
Less amounts waived (Note 2D) ......... 119 161 136 162
Less expense reimbursements ........... 9 19 26 24
- ------------------------------------------------------------------------------------------
Net expenses ......................... 492 850 1,508 744
- ------------------------------------------------------------------------------------------
Net investment income
(loss) ............................. 3,468 1,856 988 (95)
- ------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on
investment transactions ............... (2,604) (61) 6,287 (6,607)
Change in net unrealized
appreciation/depreciation
of investments ........................ (2,648) 10,256 10,874 17,986
- ------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments ................. (5,252) 10,195 17,161 11,379
- ------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets from operations ................ $(1,784) $12,051 $18,149 $11,284
- ------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
56
<PAGE>
STATEMENT OF OPERATIONS For the year ended December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Equity
Core Equity Growth
Fund* Fund*
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME:
Interest ................................. $ 186 $ 259
Dividend ................................. 820 771
Investment income from Portfolio ......... 667 815
Foreign taxes withheld ................... (5) (1)
Expenses from Portfolio .................. (502) (895)
- --------------------------------------------------------------------------------
Total investment income ............... 1,166 949
- --------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees ................. 614 1,000
Administration fees ...................... 188 308
Distribution fees ........................ 5 18
Custody and accounting fees .............. 68 73
Printing and postage ..................... 50 57
Professional fees ........................ 30 27
Registration expenses .................... 61 48
Transfer agent fees ...................... 71 123
Trustees' fees ........................... 4 7
Other .................................... 14 10
- --------------------------------------------------------------------------------
Total expenses ........................ 1,105 1,671
- --------------------------------------------------------------------------------
Less amounts waived (Note 2D) ............ 101 72
Less expense reimbursements .............. 30 58
- --------------------------------------------------------------------------------
Net expenses ............................ 974 1,541
- --------------------------------------------------------------------------------
Net investment income (loss) .......... 192 (592)
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain on
investment transactions .................. 5,082 4,029
Change in net unrealized
appreciation of investments .............. 26,635 69,875
- --------------------------------------------------------------------------------
Net realized and unrealized gain
on investments ........................... 31,717 73,904
- --------------------------------------------------------------------------------
Net increase in net assets from
operations ............................... $31,909 $73,312
- --------------------------------------------------------------------------------
</TABLE>
* See Note 1.
See notes to financial statements.
57
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated
(Amounts in Thousands)
<TABLE>
<CAPTION>
Money Market Fund
----------------------------
Year Ended
December 31,
1999 1998
- --------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income ................................ $ 11,119 $ 8,450
Net realized gain (loss) on investment
transactions ......................................... (1) (1)
Change in net unrealized appreciation/
depreciation of investments .......................... -- --
- --------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations ......................................... 11,118 8,449
- --------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1)
Net investment income ................................ (11,116) (8,450)
In excess of net investment income ................... -- --
Net realized gain on investment transactions ......... -- --
In excess of net realized gain on investment
transactions ......................................... -- --
- --------------------------------------------------------------------------------------
Total distributions to shareholders ................ (11,116) (8,450)
- --------------------------------------------------------------------------------------
Increase from capital share transactions# 100,785 60,915
- --------------------------------------------------------------------------------------
Total increase in net assets ....................... 100,787 60,914
NET ASSETS:
Beginning of period .................................. 195,493 134,579
- --------------------------------------------------------------------------------------
End of period ........................................ $296,280 $195,493
- --------------------------------------------------------------------------------------
<CAPTION>
Short-Intermediate Term
U.S. Government Intermediate
Securities Fund Term Bond Fund
----------------------- -----------------------
Year Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income ................................ $ 1,538 $ 1,444 $ 1,963 $ 1,335
Net realized gain (loss) on investment
transactions ......................................... (174) 215 (865) 409
Change in net unrealized appreciation/
depreciation of investments .......................... (1,131) 344 (1,474) 138
- ---------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations ......................................... 233 2,003 (376) 1,882
- ---------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1)
Net investment income ................................ (1,538) (1,444) (1,963) (1,335)
In excess of net investment income ................... -- (11) -- --
Net realized gain on investment transactions ......... (115) (96) (30) (381)
In excess of net realized gain on investment
transactions ......................................... -- -- -- --
- ---------------------------------------------------------------------------------------------------------
Total distributions to shareholders ................ (1,653) (1,551) (1,993) (1,716)
- ---------------------------------------------------------------------------------------------------------
Increase from capital share transactions# 2,684 6,164 9,384 14,119
- ---------------------------------------------------------------------------------------------------------
Total increase in net assets ....................... 1,264 6,616 7,015 14,285
NET ASSETS:
Beginning of period .................................. 30,564 23,948 32,880 18,595
- ---------------------------------------------------------------------------------------------------------
End of period ........................................ $31,828 $30,564 $39,895 $32,880
- ---------------------------------------------------------------------------------------------------------
</TABLE>
# See detailed Capital Share Transactions.
See notes to financial statements.
58
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated
(Amounts in Thousands)
<TABLE>
<CAPTION>
U.S. Government
Securities Fund Income Fund
--------------------- -----------------------
Year Ended Year Ended
December 31, December 31.
1999 1998 1999 1998
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income ........................... $ 319 $ 155 $ 3,468 $ 2,929
Net realized gain (loss) on investment
transactions .................................... (333) 168 (2,604) 1,952
Change in net unrealized appreciation/
depreciation of investments ..................... (128) (59) (2,648) 132
- -------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations .................................... (142) 264 (1,784) 5,013
- -------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1)
Net investment income ........................... (319) (155) (3,468) (2,929)
In excess of net investment income .............. -- -- -- (18)
Net realized gain on investment transactions .... -- (168) (584) (1,353)
In excess of net realized gain on investment
transactions .................................... -- (2) -- --
- -------------------------------------------------------------------------------------------------
Total distributions to shareholders ........... (319) (325) (4,052) (4,300)
- -------------------------------------------------------------------------------------------------
Increase from capital share transactions# 4,566 767 11,811 8,036
- -------------------------------------------------------------------------------------------------
Total increase in net assets .................. 4,105 706 5,975 8,749
NET ASSETS:
Beginning of period ............................. 3,634 2,928 60,078 51,329
- -------------------------------------------------------------------------------------------------
End of period ................................... $7,739 $3,634 $66,053 $60,078
- -------------------------------------------------------------------------------------------------
<CAPTION>
Equity
Balanced Fund Income Fund
------------------------- --------------------------------
Year Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income ........................... $ 1,856 $ 1,085 $ 988 $ 811
Net realized gain (loss) on investment
transactions .................................... (61) 2,397 6,287 382
Change in net unrealized appreciation/
depreciation of investments ..................... 10,256 7,274 10,874 22,275
- ---------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations .................................... 12,051 10,756 18,149 23,468
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1)
Net investment income ........................... (1,710) (1,085) (978) (811)
In excess of net investment income .............. -- (2) -- (18)
Net realized gain on investment transactions .... (521) (2,053) (6,799) (382)
In excess of net realized gain on investment
transactions .................................... -- -- -- (5)
- ---------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ........... (2,231) (3,140) (7,777) (1,216)
- ---------------------------------------------------------------------------------------------------------------
Increase from capital share transactions# 36,093 15,058 35,513 30,423
- ---------------------------------------------------------------------------------------------------------------
Total increase in net assets .................. 45,913 22,674 45,885 52,675
NET ASSETS:
Beginning of period ............................. 59,033 36,359 127,918 75,243
- ---------------------------------------------------------------------------------------------------------------
End of period ................................... $104,946 $59,033 $173,803 $127,918
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
# See detailed Capital Share Transactions.
See notes to financial statements.
59
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated
(Amounts in Thousands)
<TABLE>
<CAPTION>
Small Core
Capitalization Fund Equity Fund
----------------------- -------------------------
Year Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ......................... $ (95) $ (17) $ 192 $ 263
Net realized gain (loss) on investment
transactions ......................................... (6,607) 2,044 5,082 3,962
Change in net unrealized appreciation/
depreciation of investments .......................... 17,986 (3,092) 26,635 14,995
- -----------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations ........................................... 11,284 (1,065) 31,909 19,220
- -----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1)
Net investment income ................................ -- -- (192) (263)
In excess of net investment income ................... -- -- -- (3)
Net realized gain on investment transactions ......... -- (2,044) (3,154) (3,659)
In excess of net realized gain on
investment transactions .............................. -- (2,080) -- --
- -----------------------------------------------------------------------------------------------------------
Total distributions to shareholders ................ -- (4,124) (3,346) (3,925)
- -----------------------------------------------------------------------------------------------------------
Increase from capital share transactions# 17,669 29,953 69,766 21,868
- -----------------------------------------------------------------------------------------------------------
Total increase in net assets ....................... 28,953 24,764 98,329 37,163
NET ASSETS:
Beginning of period .................................. 64,792 40,028 88,560 51,397
- -----------------------------------------------------------------------------------------------------------
End of period ........................................ $93,745 $64,792 $186,889 $88,560
- -----------------------------------------------------------------------------------------------------------
<CAPTION>
Equity
Growth Fund
-------------------------
Year Ended
December 31,
1999 1998
- -----------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ......................... $ (592) $ 65
Net realized gain (loss) on investment
transactions ......................................... 4,029 6,296
Change in net unrealized appreciation/
depreciation of investments .......................... 69,875 40,718
- -----------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations ........................................... 73,312 47,079
- -----------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1)
Net investment income ................................ -- (65)
In excess of net investment income ................... -- (15)
Net realized gain on investment transactions ......... (4,405) (5,914)
In excess of net realized gain on
investment transactions .............................. -- --
- -----------------------------------------------------------------------------------
Total distributions to shareholders ................ (4,405) (5,994)
- -----------------------------------------------------------------------------------
Increase from capital share transactions# 85,511 62,510
- -----------------------------------------------------------------------------------
Total increase in net assets ....................... 154,418 103,595
NET ASSETS:
Beginning of period .................................. 180,325 76,730
- -----------------------------------------------------------------------------------
End of period ........................................ $334,743 $180,325
- -----------------------------------------------------------------------------------
</TABLE>
# See detailed Capital Share Transactions.
See notes to financial statements.
60
<PAGE>
- --------------------------------------------------------------------------------
CHASE FUNDS
Capital Share Transactions
- --------------------------------------------------------------------------------
MONEY MARKET FUND
For the periods indicated (Amounts in Thousands)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
Premier Shares Investor Shares
- ------------------------------------------------------------------------------------------------------
Year Ended December 31, 1999
Amount Shares Amount Shares
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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
======================================================================================================
Year Ended December 31, 1998*
- ------------------------------------------------------------------------------------------------------
Shares sold $ 241,189 241,189 $ 17 17
Shares issued in reinvestment of distributions 6,713 6,713 -- --
Shares redeemed (187,004) (187,004) -- --
- ------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 60,898 60,898 $ 17 17
======================================================================================================
</TABLE>
SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Premier Shares Investor Shares
- --------------------------------------------------------------------------------------------------------
Year Ended December 31, 1999
Amount Shares Amount Shares
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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
=======================================================================================================
Year Ended December 31, 1998**
Shares sold $11,638 931 $ 10 1
Shares issued in reinvestment of distributions 1,293 103 -- --
Shares redeemed (6,777) (540) -- --
- -------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 6,154 494 $ 10 1
=======================================================================================================
</TABLE>
*For Investor shares, from commencement of offering on November 9, 1998.
**For Investor shares, from commencement of offering on November 10, 1998.
See notes to financial statements.
61
<PAGE>
- --------------------------------------------------------------------------------
CHASE FUNDS
Capital Share Transactions
- --------------------------------------------------------------------------------
INTERMEDIATE TERM BOND FUND
For the periods indicated (Amounts in Thousands)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Premier Shares Investor Shares
- ---------------------------------------------------------------------------------------------------
Year Ended December 31, 1999
Amount Shares Amount Shares
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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
===================================================================================================
Year Ended December 31, 1998*
Shares sold $20,306 1,576 $ 10 1
Shares issued in reinvestment of distributions 1,431 111 -- --
Shares redeemed (7,628) (591) -- --
- ---------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $14,109 1,096 $ 10 1
===================================================================================================
</TABLE>
U.S. GOVERNMENT SECURITIES FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Premier Shares Investor Shares
- ------------------------------------------------------------------------------------------
Year Ended December 31, 1999
Amount Shares Amount Shares
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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
==========================================================================================
Year Ended December 31, 1998*
Shares sold $ 1,942 135 $ 10 1
Shares issued in reinvestment of distributions 286 21 1 --
Shares redeemed (1,472) (103) -- --
- ------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 756 53 $ 11 1
==========================================================================================
</TABLE>
*For Investor shares, from commencement of offering on November 10, 1998.
See notes to financial statements.
62
<PAGE>
- --------------------------------------------------------------------------------
CHASE FUNDS
Capital Share Transactions
- --------------------------------------------------------------------------------
INCOME FUND
For the periods indicated (Amounts in Thousands)
<TABLE>
<CAPTION>
Premier Shares Investor Shares
- ------------------------------------------------------------------------------------------------
Year Ended December 31, 1999
Amount Shares Amount Shares
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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
================================================================================================
Year Ended December 31, 1998*
Shares sold $ 20,818 1,014 $ 10 1
Shares issued in reinvestment of distributions 3,601 175 1 --
Shares redeemed (16,394) (798) -- --
- ------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 8,025 391 $ 11 1
================================================================================================
</TABLE>
BALANCED FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Premier Shares Investor Shares
- ---------------------------------------------------------------------------------------------------
Year Ended December 31, 1999
Amount Shares Amount Shares
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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
===================================================================================================
Year Ended December 31, 1998**
Shares sold $ 29,750 934 $ 17 1
Shares issued in reinvestment of distributions 3,139 94 1 --
Shares redeemed (17,849) (562) -- --
- ---------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 15,040 466 $ 18 1
===================================================================================================
</TABLE>
*For Investor shares, from commencement of offering on November 10, 1998.
**For Investor shares, from commencement of offering on October 16, 1998.
See notes to financial statements.
63
<PAGE>
- --------------------------------------------------------------------------------
CHASE FUNDS
Capital Share Transactions
- --------------------------------------------------------------------------------
EQUITY INCOME FUND
For the periods indicated (Amounts in Thousands)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Premier Shares Investor Shares
- ---------------------------------------------------------------------------------------------------
Year Ended December 31, 1999
Amount Shares Amount Shares
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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
===================================================================================================
Year Ended December 31, 1998*
Shares sold $ 49,582 1,208 $ 68 2
Shares issued in reinvestment of distributions 1,190 28 -- --
Shares redeemed (20,417) (501) -- --
- ---------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 30,355 735 $ 68 2
===================================================================================================
</TABLE>
SMALL CAPITALIZATION FUND
<TABLE>
<CAPTION>
Premier Shares Investor Shares
Year Ended December 31, 1999
Amount Shares Amount Shares
<S> <C> <C> <C> <C>
Shares sold $34,842 1,764 776 41
hSares issued in reinvestment of distributions -- -- -- --
Shares redeemed (17,865) (898) (84) (4)
- ---------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $16,977 866 $692 37
===================================================================================================
Year Ended December 31, 1998**
Shares sold $38,507 1,806 $ 45 3
Shares issued in reinvestment of distributions 3,988 210 3 --
Shares redeemed (12,590) (611) -- --
- ---------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $29,905 1,405 $ 48 3
===================================================================================================
</TABLE>
*For Investor shares, from commencement of offering on August 24, 1998.
**For Investor shares, from commencement of offering on August 12, 1998.
See notes to financial statements.
64
<PAGE>
- --------------------------------------------------------------------------------
CHASE FUNDS
Capital Share Transactions
- --------------------------------------------------------------------------------
CORE EQUITY FUND
For the periods indicated (Amounts in Thousands)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
Premier Shares Investor Shares
- ---------------------------------------------------------------------------------------------------
Year Ended December 31, 1999
Amount Shares Amount Shares
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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
===================================================================================================
Year Ended December 31, 1998*
Shares sold $ 33,357 1,410 $ 21 1
Shares issued in reinvestment of distributions 3,840 149 1 --
Shares redeemed (15,351) (639) -- --
- -------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 21,846 920 $ 22 1
===================================================================================================
</TABLE>
EQUITY GROWTH FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Premier Shares Investor Shares
- ---------------------------------------------------------------------------------------------------
Year Ended December 31, 1999
Amount Shares Amount Shares
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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
===================================================================================================
Year Ended December 31, 1998**
Shares sold $ 80,644 1,862 $ 1,269 28
Shares issued in reinvestment of distributions 5,872 116 44 1
Shares redeemed (25,217) (561) (102) (3)
- ---------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 61,299 1,417 $ 1,211 26
===================================================================================================
</TABLE>
*For Investor shares, from commencement of offering on September 10, 1998.
**For Investor shares, from commencement of offering on August 13, 1998.
See notes to financial statements.
65
<PAGE>
- --------------------------------------------------------------------------------
CHASE FUNDS NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Mutual Fund Investment Trust (the "Trust") was organized on September 23, 1997
as a Massachusetts Business Trust, and is registered under the Investment
Company Act of 1940, as amended, (the "1940 Act") as an open-end management
investment company. Chase 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. Investment income and expenses from the
Portfolios are for the period August 12, 1999 to December 31, 1999. Realized
gains on investments transactions include $4,897,914 and $4,029,324,
respectively from CEP and EGP.
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 December 31, 1999, CEF and EGF owned 87.60% and 91.72% 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.
66
<PAGE>
CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (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.
3. Security transactions and investment income -- Investment transactions
are accounted for on the trade date (the date the order to buy or
67
<PAGE>
CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (continued)
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.
68
<PAGE>
CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (continued)
The following amounts were reclassified within the capital accounts (in
thousands):
<TABLE>
<CAPTION>
Accumulated
undistributed/ Accumulated
(overdistributed) net realized
Paid-in net investment gain (loss)
capital income on investments
- -------------------------------------------------------------------
<S> <C> <C> <C>
SCF ......... $(102) $ 94 $8
EGF ......... (599) 592 7
</TABLE>
The reclassification for SCF and EGF primarily relate to the character
for tax purposes of current year net operating losses.
Dividends and distributions which exceed net investment income or net
realized capital gains for financial reporting purposes but not for tax
purposes are reported as distributions in excess of net investment income
or net realized capital gains.
2. Fees and Other Transactions with Affiliates
A. Investment advisory fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank ("Chase" or the "Advisor"), acts as
the Investment Advisor to 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 a portion of its 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, Chase Fund Distributors, Inc. ("CFD" or
the "Distributor"), a wholly-owned subsidiary of The BISYS Group, Inc.,
acts as the Funds' distributor and sub-administrator.
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.
69
<PAGE>
CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (continued)
The Distributor voluntarily waived some or all of its fees as outlined in
Note 2.D.
C. Administration fee -- Pursuant to an Administration Agreement, Chase
(the "Administrator") provides certain administration services to the
Trust. For these services and facilities, the Administrator receives from
the Funds (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.
Effective August 12, 1999, the Administrator receives from CEF and EGF a
fee computed at an annual rate equal to 0.05% of average daily net
assets. Prior to August 12, 1999, the fee was 0.10% of average daily net
assets.
The Administrator voluntarily waived some or all of its fees as outlined
in Note 2.D.
D. Waiver of fees -- For the year ended December 31, 1999, the Advisor,
Distributor and Administrator 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 ........... $187 $-- $-- $187
STGSF ......... 119 -- -- 119
ITBF .......... 159 -- 1 160
GSF ........... 33 10 -- 43
IF ............ 119 -- -- 119
BF ............ 158 -- 3 161
EIF ........... 132 -- 4 136
SCF ........... 161 -- 1 162
CEF ........... 96 -- 5 101
EGF ........... 54 -- 18 72
</TABLE>
E. Other -- Certain officers of the Trust are officers of Chase Fund
Distributors, Inc. or of its parent corporation, The BISYS Group, Inc.
Chase provides portfolio accounting and custody services for the Funds,
except for CEF and EGF. Compensation for such services is presented in
the Statement of Operations as custodian fees. Chase provided portfolio
accounting and custody services for CEF and EGF through June 30, 1999.
Compensation paid to Chase by CEF and EGF for portfolio accounting and
custody services was approximately $41,818 and $39,559, respectively.
The Distributor voluntarily reimbursed expenses of the Funds in the
amounts as shown on the Statement of Operations.
3. Investment Transactions
For the year ended December 31, 1999, purchases and sales of investments
(excluding short-term investments) were as follows (in thousands):
70
<PAGE>
CHASE FUNDS NOTES TO FINANCIAL STATEMENTS (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 ......... $ -- $ -- $31,059 $25,367
ITBF .......... 21,214 14,691 15,928 14,270
GSF ........... -- -- 1,108 6,703
IF ............ 26,244 28,096 55,504 46,609
BF ............ 35,246 6,676 33,412 29,720
EIF ........... 41,731 22,442 -- --
SCF ........... 57,315 42,749 -- --
CEF ........... 65,637 14,089 -- --
EGF ........... 73,977 30,823 -- --
</TABLE>
Purchases and sales for CEF and EGF reflect the period January 1, 1999 to
August 11, 1999. After August 11, 1999, all of CEF's and EGF's investable
assets were invested in CEP and EGP, respectively.
4. Federal Income Tax Matters
For Federal income tax purposes, the cost and unrealized appreciation
(depreciation) in value of the investment securities at December 31, 1999, are
as follows (in thousands):
<TABLE>
<CAPTION>
Net unrealized
Aggregate Gross unrealized Gross unrealized appreciation/
cost appreciation depreciation (depreciation)
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
STGSF ......... $ 32,032 $ 2 $ (499) $ (497)
ITBF .......... 40,401 -- (1,008) (1,008)
GSF ........... 7,778 -- (96) (96)
IF ............ 86,041 -- (1,192) (1,192)
BF ............ 83,135 24,284 (2,655) 21,629
EIF ........... 113,089 65,700 (3,230) 62,470
SCF ........... 69,840 27,055 (3,118) 23,937
</TABLE>
At December 31, 1999, the following funds had a capital loss carryover which
will be available to offset capital gains arising through December 31, 2007 (in
thousands):
<TABLE>
<CAPTION>
Capital Loss
Carryover
- -----------------------------------------------------------------------
<S> <C>
STGSF.............................................. $ 110
ITBF .............................................. 301
GSF ............................................... 35
IF ................................................ 813
SCF ............................................... 8,242
</TABLE>
To the extent that any net capital loss carryovers are used to offset future
capital gains, it is probable that the gains so offset will not be distributed
to shareholders.
71
<PAGE>
- --------------------------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Chase Money Market Fund
--------------------------------
Premier Shares
--------------------------------
For the Years Ended December 31,
--------------------------------
1999 1998 1997
---- ---- ----
<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 ................................................... 0.05 0.05 0.05
Net gains or losses in investments (both realized and unrealized) ....... -- -- --
------- ------ ------
Total from investment operations ....................................... 0.05 0.05 0.05
------- ------ ------
Less distributions:
Dividends from net investment income .................................... 0.05 0.05 0.05
Distributions from capital gains ........................................ -- -- --
------- ------ ------
Total distributions .................................................... 0.05 0.05 0.05
------- ------ ------
Net asset value, end of period ........................................... $1.00 $1.00 $1.00
======= ====== ======
Total return ............................................................. 4.89% 5.20% 5.18%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 296 $ 195 $ 135
Ratios to average net assets:#
Expenses ................................................................ 0.50% 0.50% 0.50%
Net investment income ................................................... 4.81% 5.07% 5.09%
Expenses without waivers and assumption of expenses ..................... 0.58% 0.60% 0.74%
Net investment income without waivers and assumption of expenses 4.73% 4.97% 4.85%
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
Chase Money Market Fund
----------------------------------------------
Premier Shares Investor Shares
----------------------------------------------
For the Years
Ended December 31, Year 11/10/98**
-------------------- Ended Through
1996 1995 12/31/99 12/31/98
---- ---- -------- ----------
<S> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ..................................... $1.00 $1.00 $ 1.00 $1.00
----- ----- ------ -----
Income from investment operations:
Net investment income ................................................... 0.05 0.05 0.05 0.01
Net gains or losses in investments (both realized and unrealized) ....... -- -- -- --
----- ----- ------ -----
Total from investment operations ....................................... 0.05 0.05 0.05 0.01
----- ----- ------ -----
Less distributions:
Dividends from net investment income .................................... 0.05 0.05 0.05 0.01
Distributions from capital gains ........................................ -- -- -- --
----- ----- ------ -----
Total distributions .................................................... 0.05 0.05 0.05 0.01
----- ----- ------ -----
Net asset value, end of period ........................................... $1.00 $1.00 $1.00 $1.00
===== ===== ====== =====
Total return ............................................................. 5.06% 5.57% 4.78% 0.69%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 119 $ 71 $ + $ +
Ratios to average net assets:#
Expenses ................................................................ 0.50% 0.50% 0.60% 0.60%
Net investment income ................................................... 4.93% 5.43% 4.71% 4.72%
Expenses without waivers and assumption of expenses ..................... 0.72% 0.72% 25.25% 0.80%
Net investment income without waivers and assumption of expenses 4.71% 5.21% (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.
72
<PAGE>
- ------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Chase Short-Intermediate Term U.S.
Government Securities Fund
----------------------------------
Premier Shares
----------------------------------
For the Years Ended December 31,
----------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ................................... $12.60 $12.39 $11.66
-------- ------ - ----
Income from investment operations:
Net investment income ................................................. 0.60 0.63 0.67
Net gains or losses in investments (both realized and unrealized) ..... (0.51) 0.25 0.06
-------- ------ ------
Total from investment operations ..................................... 0.09 0.88 0.73
-------- ------ ------
Less distributions:
Dividends from net investment income .................................. 0.60 0.63 --
Distributions from capital gains ...................................... 0.04 0.04 --
-------- ------ ------
Total distributions .................................................. 0.64 0.67 --
-------- ----- ------
Net asset value, end of period ......................................... $12.05 $12.60 $12.39
======== ====== ======
Total return ........................................................... 0.72% 7.35% 6.30%
Ratios/supplemental data:
Net assets, end of period (millions) .................................. $ 31 $ 31 $ 24
Ratios to average net assets:#
Expenses .............................................................. 0.75% 0.75% 0.75%
Net investment income ................................................. 4.82% 5.06% 5.40%
Expenses without waivers and assumption of expenses ................... 1.12% 1.12% 1.01%
Net investment income without waivers and assumption of expenses 4.45% 4.69% 5.14%
Portfolio turnover rate ................................................ 91% 87% 63%
- -----------------------------------------------------------------------------------------------------------
<CAPTION>
Chase Short-Intermediate Term U.S.
Government Securities Fund
------------------------------------------
Premier Shares Investor Shares
--------------- ---------------------
For the Years
Ended December 31, Year 11/10/98**
------------------ Ended Through
1996 1995 12/31/99 12/31/98
---- ---- -------- ----------
<S> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ................................... $11.35 $10.14 $ 12.59 $12.64
------ ------ -------- -------
Income from investment operations:
Net investment income ................................................. 0.60 0.58 0.57 0.08
Net gains or losses in investments (both realized and unrealized) ..... (0.29) 0.63 (0.51) --
------ ------ -------- -------
Total from investment operations ..................................... 0.31 1.21 0.06 0.08
------ ------ -------- -------
Less distributions:
Dividends from net investment income .................................. -- -- 0.57 0.09
Distributions from capital gains ...................................... -- -- 0.04 0.04
------ ------ -------- -------
Total distributions .................................................. -- -- 0.61 0.13
------ ------ -------- -------
Net asset value, end of period ......................................... $11.66 $11.35 $ 12.04 $12.59
====== ====== ======== =======
Total return ........................................................... 2.68% 12.01% 0.48% 0.60%
Ratios/supplemental data:
Net assets, end of period (millions) .................................. $ 29 $ 29 $ + $ +
Ratios to average net assets:#
Expenses .............................................................. 0.75% 0.75% 0.99% 1.03%
Net investment income ................................................. 5.26% 5.38% 4.58% 4.47%
Expenses without waivers and assumption of expenses ................... 0.88% 0.91% 57.39% 1.58%
Net investment income without waivers and assumption of expenses 5.13% 5.22% (51.82%) 3.92%
Portfolio turnover rate ................................................ 177% 187% 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.
73
<PAGE>
- --------------------------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Chase Intermediate Term Bond Fund
-----------------------------------
Premier Shares
-----------------------------------
For the Years Ended December 31,
-----------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ..................................... $12.87 $12.75 $11.89
------ ------- ------
Income from investment operations:
Net investment income ................................................... 0.66 0.68 0.56
Net gains or losses in investments (both realized and unrealized) ....... (0.80) 0.27 0.30
------ ------ ------
Total from investment operations ....................................... (0.14) 0.95 0.86
------ ------ ------
Less distributions:
Dividends from net investment income .................................... 0.66 0.68 --
Distributions from capital gains ........................................ 0.01 0.15 --
------ ------ ------
Total distributions .................................................... 0.67 0.83 --
------ ------ ------
Net asset value, end of period ........................................... $12.06 $12.87 $12.75
====== ====== ======
Total return ............................................................. (1.11%) 7.63% 7.26%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 39 $ 33 $ 19
Ratios to average net assets:#
Expenses ................................................................ 0.75% 0.75% 0.75%
Net investment income ................................................... 5.33% 5.25% 5.61%
Expenses without waivers and assumption of expenses ..................... 1.18% 1.27% 1.25%
Net investment income without waivers and assumption of expenses 4.90% 4.73% 5.11%
Portfolio turnover rate .................................................. 85% 135% 14%
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
Chase Intermediate Term Bond Fund
----------------------------------------------
Premier Shares Investor Shares
----------------- ------------------------
For the Years
Ended December 31, Year 11/10/98**
------------------ Ended Through
1996 1995 12/31/99 12/31/98
---- ---- -------- ----------
<S> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ..................................... $11.67 $ 9.99 $12.87 $12.91
------ ------ ------ ------
Income from investment operations:
Net investment income ................................................... 0.61 0.64 0.63 0.09
Net gains or losses in investments (both realized and unrealized) ....... (0.39) 1.04 (0.80) 0.11
------ ------ ------ ------
Total from investment operations ....................................... 0.22 1.68 (0.17) 0.20
------ ------ ------ ------
Less distributions:
Dividends from net investment income .................................... -- -- 0.63 0.09
Distributions from capital gains ........................................ -- -- 0.01 0.15
------ ------ ------ ------
Total distributions .................................................... -- -- 0.64 0.24
------ ------ ------ ------
Net asset value, end of period ........................................... $11.89 $11.67 $12.06 $12.87
====== ====== ====== ======
Total return ............................................................. 1.86% 16.79% (1.36%) 1.52%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 7 $ 5 $ + $ +
Ratios to average net assets:#
Expenses ................................................................ 0.75% 0.75% 0.99% 1.03%
Net investment income ................................................... 5.32% 5.89% 5.09% 4.64%
Expenses without waivers and assumption of expenses ..................... 1.42% 1.43% 9.79% 1.72%
Net investment income without waivers and assumption of expenses 4.65% 5.21% (3.71%) 3.95%
Portfolio turnover rate .................................................. 134% 198% 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.
74
<PAGE>
- --------------------------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Chase U.S. Government Securities Fund
-------------------------------------
Premier Shares
-----------------------------------
For the Years Ended December 31,
-----------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ..................................... $13.83 $13.98 $12.76
------ ------ ------
Income from investment operations:
Net investment income ................................................... 0.64 0.72 0.75
Net gains or losses in investments (both realized and unrealized) ....... (0.99) 0.54 0.47
-------- ------ ------
Total from investment operations ....................................... (0.35) 1.26 1.22
-------- ------ ------
Less distributions:
Dividends from net investment income .................................... 0.64 0.72 --
Distributions from capital gains ........................................ -- 0.68 --
In excess of realized capital gains ..................................... -- 0.01 --
-------- ------ ------
Total distributions .................................................... 0.64 1.41 --
-------- ------ ------
Net asset value, end of period ........................................... $12.84 $13.83 $13.98
====== ====== ======
Total return ............................................................. (2.55%) 9.28% 9.55%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 8 $ 4 $ 3
Ratios to average net assets:#
Expenses ................................................................ 0.75% 0.75% 0.75%
Net investment income ................................................... 4.87% 5.07% 5.73%
Expenses without waivers and assumption of expenses ..................... 2.44% 3.85%* 3.15%
Net investment income without waivers and assumption of expenses 3.18% 1.97%* 3.33%
Portfolio turnover rate .................................................. 19% 110% 87%
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
Chase U.S. Government Securities Fund
-----------------------------------------------
Premier Shares Investor Shares
---------------- -------------------------
For the Years
Ended December 31, Year 11/10/98**
------------------- Ended Through
1996 1995 12/31/99 12/31/98
---- ---- -------- ----------
<S> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ..................................... $13.01 $10.00 $ 13.83 $14.42
------ ------ ------- ------
Income from investment operations:
Net investment income ................................................... 0.74 0.73 0.61 0.09
Net gains or losses in investments (both realized and unrealized) ....... (0.99) 2.28 (0.99) 0.10
------ ------ ------- ------
Total from investment operations ....................................... (0.25) 3.01 (0.38) 0.19
------ ------ ------- ------
Less distributions:
Dividends from net investment income .................................... -- -- 0.61 0.09
Distributions from capital gains ........................................ -- -- -- 0.68
In excess of realized capital gains ..................................... -- -- -- 0.01
------ ------ ------- ------
Total distributions .................................................... -- -- 0.61 0.78
------ ------ ------- ------
Net asset value, end of period ........................................... $12.76 $13.01 12.84 $13.83
====== ====== ======= ======
Total return ............................................................. (1.89%) 30.11% (2.79%) 1.37%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 3 $ 3 $ + $ +
Ratios to average net assets:#
Expenses ................................................................ 0.75% 0.75% 1.00% 1.03%
Net investment income ................................................... 6.01% 6.38% 4.62% 4.45%
Expenses without waivers and assumption of expenses ..................... 2.09% 2.22% 45.80% 1.92%
Net investment income without waivers and assumption of expenses 4.67% 4.91% (40.18%) 3.56%
Portfolio turnover rate .................................................. 48% 17% 19% 110%
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Restated.
** Commencement of offering of class of shares.
# Short periods have been annualized.
+ Amount rounds to less than one million.
See notes to financial statements.
75
<PAGE>
- --------------------------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Chase Income Fund
-----------------------------------
Premier Shares
-----------------------------------
For the Years Ended December 31,
-----------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ..................................... $20.47 $20.18 $18.56
------ ------ ------
Income from investment operations:
Net investment income ................................................... 1.03 1.09 1.14
Net gains or losses in investments (both realized and unrealized) ....... (1.59) 0.77 0.48
------ ------ ------
Total from investment operations ....................................... (0.56) 1.86 1.62
------ ------ ------
Less distributions:
Dividends from net investment income .................................... 1.03 1.09 --
Distributions from capital gains ........................................ 0.17 0.48 --
------ ------ ------
Total distributions .................................................... 1.20 1.57 --
------ ------ ------
Net asset value, end of period ........................................... $18.71 $20.47 $20.18
====== ====== ======
Total return ............................................................. (2.78%) 9.47% 8.73%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 65 $ 60 $ 51
Ratios to average net assets:#
Expenses ................................................................ 0.75% 0.75% 0.75%
Net investment income ................................................... 5.28% 5.28% 5.82%
Expenses without waivers and assumption of expenses ..................... 0.93% 0.94% 1.14%
Net investment income without waivers and assumption of expenses 5.10% 5.09% 5.43%
Portfolio turnover rate .................................................. 120% 54% 97%
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
Chase Income Fund
----------------------------------------------
Premier Shares Investor Shares
------------------- ------------------------
For the Years
Ended December 31, Year 11/10/98**
-------------------- Ended Through
1996 1995 12/31/99 12/31/98
---- ---- -------- ----------
<S> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ..................................... $18.21 $15.39 $20.46 $20.77
------ ------ ------- ------
Income from investment operations:
Net investment income ................................................... 1.00 0.97 0.98 0.14
Net gains or losses in investments (both realized and unrealized) ....... (0.65) 1.85 (1.57) 0.18
------ ------ ------- ------
Total from investment operations ....................................... 0.35 2.82 (0.59) 0.32
------ ------ ------- ------
Less distributions:
Dividends from net investment income .................................... -- -- 0.98 0.15
Distributions from capital gains ........................................ -- -- 0.17 0.48
------ ------ ------- ------
Total distributions .................................................... -- -- 1.15 0.63
------ ------ ------- ------
Net asset value, end of period ........................................... $18.56 $18.21 $18.72 $20.46
====== ====== ====== ======
Total return ............................................................. 1.91% 18.38% (2.92%) 1.54%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 54 $ 57 $ 1 $ 1
Ratios to average net assets:#
Expenses ................................................................ 0.75% 0.75% 0.99% 1.03%
Net investment income ................................................... 5.58% 5.77% 5.04% 4.72%
Expenses without waivers and assumption of expenses ..................... 1.07% 1.08% 6.22% 1.44%
Net investment income without waivers and assumption of expenses 5.26% 5.44% (0.19%) 4.31%
Portfolio turnover rate .................................................. 72% 93% 120% 54%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
** Commencement of offering of class of shares.
# Short periods have been annualized.
See notes to financial statements.
76
<PAGE>
- --------------------------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Chase Balanced Fund
------------------------------------
Premier Shares
------------------------------------
For the Years Ended December 31,
------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ..................................... $34.54 $29.26 $23.66
------ ------ ------
Income from investment operations:
Net investment income ................................................... 0.78@ 0.73 0.74
Net gains or losses in investments (both realized and unrealized) ....... 4.07 6.53 4.86
------ ------ ------
Total from investment operations ....................................... 4.85 7.26 5.60
------ ------ ------
Less distributions:
Dividends from net investment income .................................... 0.70 0.73 --
Distributions from capital gains ........................................ 0.19 1.25 --
------ ------ ------
Total distributions .................................................... 0.89 1.98 --
------ ------ ------
Net asset value, end of period ........................................... $38.50 $34.54 $29.26
====== ====== ======
Total return ............................................................. 14.23% 25.15% 23.67%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 103 $ 59 $ 36
Ratios to average net assets:#
Expenses ................................................................ 1.00% 1.00% 1.00%
Net investment income ................................................... 2.19% 2.32% 2.73%
Expenses without waivers and assumption of expenses ..................... 1.19% 1.28% 1.28%
Net investment income without waivers and assumption of expenses 2.00% 2.04% 2.45%
Portfolio turnover rate .................................................. 45% 58% 64%
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
Chase Balanced Fund
----------------------------------------------
Premier Shares Investor Shares
------------------- ------------------------
For the Years
Ended December 31, Year 10/16/98**
------------------ Ended Through
1996 1995 12/31/99 12/31/98
---- ---- -------- ----------
<S> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ..................................... $21.25 $17.16 $34.51 $ 31.87
------ ------ ------ --------
Income from investment operations:
Net investment income ................................................... 0.63 0.57 0.70@ 0.10
Net gains or losses in investments (both realized and unrealized) ....... 1.78 3.52 4.05 3.95
------ ------ ------ --------
Total from investment operations ....................................... 2.41 4.09 4.75 4.05
------ ------ ------ --------
Less distributions:
Dividends from net investment income .................................... -- -- 0.61 0.16
Distributions from capital gains ........................................ -- -- 0.19 1.25
------ ------ ------ --------
Total distributions .................................................... -- -- 0.80 1.41
------ ------ ------ --------
Net asset value, end of period ........................................... $23.66 $21.25 $38.46 $ 34.51
====== ====== ====== ========
Total return ............................................................. 11.31% 23.83% 13.94% 12.78%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 23 $ 21 $ 2 $ 1
Ratios to average net assets:#
Expenses ................................................................ 1.00% 1.00% 1.25% 1.25%
Net investment income ................................................... 2.82% 2.94% 1.94% 1.84%
Expenses without waivers and assumption of expenses ..................... 1.17% 1.17% 3.34% 107.16%
Net investment income without waivers and assumption of expenses 2.65% 2.77% (0.15%) (104.07%)
Portfolio turnover rate .................................................. 70% 98% 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.
77
<PAGE>
- --------------------------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Chase Equity Income Fund
-----------------------------------
Premier Shares
-----------------------------------
For the Years Ended December 31,
-----------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ..................................... $46.14 $36.97 $28.21
------ ------ ------
Income from investment operations:
Net investment income ................................................... 0.32@ 0.33 0.40
Net gains or losses in investments (both realized and unrealized) ....... 5.65 9.32 8.36
------ ------ ------
Total from investment operations ....................................... 5.97 9.65 8.76
------ ------ ------
Less distributions:
Dividends from net investment income .................................... 0.31 0.34 --
Distributions from capital gains ........................................ 2.00 0.14 --
------ ------ ------
Total distributions .................................................... 2.31 0.48 --
------ ------ ------
Net asset value, end of period ........................................... $49.80 $46.14 $36.97
====== ====== ======
Total return ............................................................. 13.06% 26.20% 31.50%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 170 $ 128 $ 75
Ratios to average net assets:#
Expenses ................................................................ 1.00% 1.00% 1.00%
Net investment income ................................................... 0.66% 0.82% 1.67%
Expenses without waivers and assumption of expenses ..................... 1.09% 1.10% 1.11%
Net investment income without waivers and assumption of expenses 0.57% 0.72% 1.56%
Portfolio turnover rate .................................................. 16% 3% 14%
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
Chase Equity Income Fund
---------------------------------------------
Premier Shares Investor Shares
--------------------- ----------------------
For the Years
Ended December 31, Year 8/24/98**
------------------ Ended Through
1996 1995 12/31/99 12/31/98
---- ---- -------- --------
<S> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ..................................... $23.93 $17.90 $ 46.23 $ 40.49
------ ------ ------- -------
Income from investment operations:
Net investment income ................................................... 0.43 0.44 0.20@ 0.06
Net gains or losses in investments (both realized and unrealized) ....... 3.85 5.59 5.63 5.89
------ ------ ------- -------
Total from investment operations ....................................... 4.28 6.03 5.83 5.95
------ ------ ------- -------
Less distributions:
Dividends from net investment income .................................... -- -- 0.23 0.07
Distributions from capital gains ........................................ -- -- 2.00 0.14
------ ------ ------- -------
Total distributions .................................................... -- -- 2.23 0.21
------ ------ ------- -------
Net asset value, end of period ........................................... $28.21 $23.93 $ 49.83 $ 46.23
====== ====== ======= =======
Total return ............................................................. 17.87% 33.72% 12.70% 14.70%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 63 $ 55 $ 4 $ 1
Ratios to average net assets:#
Expenses ................................................................ 1.00% 1.00% 1.24% 1.18%
Net investment income ................................................... 1.67% 2.10% 0.42% 0.57%
Expenses without waivers and assumption of expenses ..................... 1.07% 1.09% 3.33% 37.61%
Net investment income without waivers and assumption of expenses 1.60% 2.01% (1.67%) (35.86%)
Portfolio turnover rate .................................................. 24% 11% 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.
78
<PAGE>
- --------------------------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
Chase Small Capitalization Fund
-----------------------------------
Premier Shares
-----------------------------------
For the Years Ended December 31,
-----------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ..................................... $19.96 $21.78 $17.55
------ ------ ------
Income from investment operations:
Net investment income ................................................... (0.02)@ (0.01) 0.02
Net gains or losses in investments (both realized and unrealized) ....... 2.66 (0.46) 4.21
------ ------ ------
Total from investment operations ....................................... 2.64 ( 0.47) 4.23
------ ------ ------
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 ........................................... $22.60 $19.96 $21.78
====== ====== ======
Total return ............................................................. 13.23% (1.83%) 24.08%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 93 $ 65 $ 40
Ratios to average net assets:#
Expenses ................................................................ 1.00% 1.00% 1.00%
Net investment income ................................................... (0.13%) (0.03%) 0.13%
Expenses without waivers and assumption of expenses ..................... 1.21% 1.26% 1.40%
Net investment income without waivers and assumption of expenses (0.34%) (0.29%) (0.27%)
Portfolio turnover rate .................................................. 60% 45% 43%
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
Chase Small Capitalization Fund
-------------------------------------------
Premier Shares Investor Shares
--------------------- ---------------------
For the Years
Ended December 31, Year 8/12/98*
--------------------- Ended Through
1996 1995 12/31/99 12/31/98
---- ---- -------- --------
<S> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ..................................... $13.41 $10.23 $19.94 $19.86
------ ------ ------ ------
Income from investment operations:
Net investment income ................................................... 0.01 0.05 (0.08)@ (0.01)
Net gains or losses in investments (both realized and unrealized) ....... 4.13 3.13 2.65 1.44
------ ------ ------ ------
Total from investment operations ....................................... 4.14 3.18 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 ........................................... $17.55 $13.41 $22.51 $19.94
====== ====== ====== ======
Total return ............................................................. 30.88% 31.14% 12.89% 7.56%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 21 $ 13 $ 1 $ 1
Ratios to average net assets:#
Expenses ................................................................ 1.22% 1.35% 1.24% 1.24%
Net investment income ................................................... 0.04% 0.46% (0.37%) (0.18%)
Expenses without waivers and assumption of expenses ..................... 1.37% 1.50% 6.02% 74.81%
Net investment income without waivers and assumption of expenses (0.11%) 0.31% (5.15%) (73.75%)
Portfolio turnover rate .................................................. 68% 89% 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.
79
<PAGE>
- --------------------------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Chase Core Equity Fund
------------------------------------
Premier Shares
------------------------------------
For the Years Ended December 31,
------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ..................................... $26.52 $21.25 $15.94
------ ------ ------
Income from investment operations:
Net investment income ................................................... 0.04@ 0.09 0.14
Net gains or losses in investments (both realized and unrealized) ....... 6.27 6.44 5.17
------ ------ ------
Total from investment operations ....................................... 6.31 6.53 5.31
------ ------ ------
Less distributions:
Dividends from net investment income .................................... 0.04 0.09 --
Distributions from capital gains ........................................ 0.55 0.17 --
------ ------ ------
Total distributions .................................................... 0.59 1.26 --
------ ------ ------
Net asset value, end of period ........................................... $32.24 $26.52 $21.25
====== ====== ======
Total return ............................................................. 23.89% 30.95% 33.33%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 181 $ 89 $ 51
Ratios to average net assets:#
Expenses ................................................................ 1.00% 1.00% 1.00%
Net investment income ................................................... 0.13% 0.39% 0.74%
Expenses without waivers and assumption of expenses ..................... 1.11% 1.18% 1.20%
Net investment income without waivers and assumption of expenses 0.02% 0.21% 0.54%
Portfolio turnover rate .................................................. 11%- 32% 24%
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
Chase Core Equity Fund
-----------------------------------------------
Premier Shares Investor Shares
-------------------- -----------------------
For the Years
Ended December 31, Year 9/10/98*
--------------------- Ended Through
1996 1995 12/31/99 12/31/98
---- ---- -------- --------
<S> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ..................................... $13.01 $10.36 $26.52 $ 21.49
------ ------ ------ --------
Income from investment operations:
Net investment income ................................................... 0.16 0.17 (0.05)@ --
Net gains or losses in investments (both realized and unrealized) ....... 2.77 2.48 6.28 6.22
------ ------ ------ --------
Total from investment operations ....................................... 2.93 2.65 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 ........................................... $15.94 $13.01 $32.19 $ 26.52
====== ====== ====== ========
Total return ............................................................. 22.54% 25.53% 23.59% 29.08%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 29 $ 24 $ 6 $ 1
Ratios to average net assets:#
Expenses ................................................................ 1.00% 1.00% 1.24% 1.23%
Net investment income ................................................... 1.10% 1.44% (0.13%) (0.03%)
Expenses without waivers and assumption of expenses ..................... 1.14% 1.17% 3.02% 140.46%
Net investment income without waivers and assumption of expenses 0.96% 1.27% (1.89%) (139.26%)
Portfolio turnover rate .................................................. 29% 133% 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).
@ Calculated based upon average shares outstanding.
See notes to financial statements.
80
<PAGE>
- --------------------------------------------------------------------------------
CHASE FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
HERE
Chase Equity Growth Fund
------------------------------------
Premier Shares
-----------------------------------
For the Years Ended December 31,
-----------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ..................................... $52.36 $38.36 $27.95
------ ------ ------
Income from investment operations:
Net investment income ................................................... (0.14)@ 0.03 0.07
Net gains or losses in investments (both realized and unrealized) ....... 16.78 15.78 10.34
--------- -------- --------
Total from investment operations ....................................... 16.64 15.81 10.41
--------- -------- --------
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 ........................................... $68.09 $52.36 $38.36
========= ======== ========
Total return ............................................................. 31.85% 41.38% 37.20%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 320 $ 179 $ 74
Ratios to average net assets:#
Expenses ................................................................ 1.00% 1.00% 1.00%
Net investment income ................................................... (0.24%) 0.05% 0.20%
Expenses without waivers and assumption of expenses ..................... 1.03% 1.09% 1.11%
Net investment income without waivers and assumption of expenses (0.27%) (0.04%) 0.09%
Portfolio turnover rate .................................................. 15%- 35% 35%
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
Chase Equity Growth Fund
-----------------------------------------------
Premium Shares Investor Shares
---------------------- -----------------------
Year 8/13/98*
Ended Through
1996 1995 12/31/99 12/31/98
---- ---- -------- --------
<S> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ..................................... $23.20 $18.44 $52.30 $45.57
------ ------ ------ ------
Income from investment operations:
Net investment income ................................................... 0.10 0.17 (0.29)@ (0.02)
Net gains or losses in investments (both realized and unrealized) ....... 4.65 4.59 16.75 8.53
------ ------ ------ ------
Total from investment operations ....................................... 4.75 4.76 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 ........................................... $27.95 $23.20 $67.85 $52.30
====== ====== ====== ======
Total return ............................................................. 20.52% 25.78% 31.54% 18.80%
Ratios/supplemental data:
Net assets, end of period (millions) .................................... $ 57 $ 46 $ 15 $ 1
Ratios to average net assets:#
Expenses ................................................................ 1.00% 1.00% 1.24% 1.25%
Net investment income ................................................... 0.41% 0.78% (0.48%) (0.19%)
Expenses without waivers and assumption of expenses ..................... 1.08% 1.10% 2.34% 5.88%
Net investment income without waivers and assumption of expenses 0.33% 0.68% (1.58%) 4.82%
Portfolio turnover rate .................................................. 62% 99% 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).
@ Calculated based upon average shares outstanding.
See notes to financial statements.
81
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of
Mutual Fund Investment Trust
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments as presented, and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Chase Money Market Fund, Chase Short-Intermediate Term U.S. Government
Securities Fund, Chase Intermediate Term Bond Fund, Chase U.S. Government
Securities Fund, Chase Income Fund, Chase Balanced Fund, Chase Equity Income
Fund, Chase Small Capitalization Fund, Chase Core Equity Fund, and Chase Equity
Growth Fund (separate portfolios of Mutual Fund Investment Trust, hereafter
referred to as the "Trust") at December 31, 1999, the results of each of their
operations for the year then ended, and the changes in each of their net assets
for each of the two years in the period then ended and the financial highlights
for the periods presented, in conformity with accounting principles generally
accepted in the United States. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States, which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation of
securities at December 31, 1999 by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
February 10, 2000
82
<PAGE>
- --------------------------------------------------------------------------------
CORE EQUITY PORTFOLIO
Portfolio of Investments
- --------------------------------------------------------------------------------
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
<S> <C> <C>
- --------------------------------------------------------------------------------
Long-Term Investments -- 95.2%
- --------------------------------------------------------------------------------
Common Stock -- 95.2%
---------------------
Advertising -- 0.6%
13 Omnicom Group $ 1,305
Airlines -- 0.9%
120 Southwest Airlines, Inc. 1,936
Automotive -- 1.1%
28 Ford Motor Co. 1,482
11 General Motors Corp. 790
------
2,272
Banking -- 2.4%
28 Bank of America Corp. 1,395
47 Bank of New York Co., Inc. 1,865
46 Wells Fargo Co. 1,861
------
5,121
Biotechnology -- 1.0%
34 Amgen, Inc. * 2,054
Broadcasting/Cable -- 1.6%
43 AT&T Corp. -- Liberty Media Group, Class A * 2,435
12 Clear Channel Communications, Inc. * 1,071
------
3,506
Chemicals -- 0.8%
26 E.I. DuPont de Nemours Co. 1,726
Computer Networks -- 2.8%
55 Cisco Systems, Inc. * 5,924
Computer Software -- 6.6%
121 Microsoft Corp. * 14,077
Computers/Computer Hardware -- 6.2%
57 Dell Computer Corp. * 2,913
37 EMC Corp. * 4,053
18 Hewlett-Packard Co. 2,034
39 International Business Machines Corp. 4,172
------
13,172
Consumer Products -- 1.1%
21 Procter & Gamble Co. 2,336
Diversified -- 5.7%
62 General Electric Co. 9,548
65 Tyco International LTD (Bermuda) 2,513
------
12,061
Electronics/Electrical Equipment -- 1.5%
33 Solectron Corp. * 3,146
Financial Services -- 7.1%
26 American Express Co. 4,289
54 Charles Schwab Corp. 2,090
81 Citigroup, Inc. 4,475
37 Fannie Mae 2,310
15 Morgan Stanley Dean Witter & Co. 2,113
------
15,277
</TABLE>
See notes to financial statements.
83
<PAGE>
CORE EQUITY PORTFOLIO
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
<S> <C> <C>
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Food/Beverage Products -- 2.7%
26 Anheuser-Busch Companies, Inc. $ 1,837
42 Coca-Cola, Co. 2,421
43 PepsiCo, Inc. 1,519
-------
5,777
Health Care/Health Care Services -- 2.3%
45 Colgate-Palmolive Co. 2,953
24 Guidant Corp. * 1,118
23 Medtronic, Inc. 831
-------
4,902
Insurance -- 4.0%
33 American General Corp. 2,530
55 American International Group, Inc. 5,995
-------
8,525
Internet Services/Software -- 1.3%
37 America Online, Inc. * 2,818
Machinery & Engineering Equipment -- 0.9%
15 Applied Materials, Inc. * 1,846
Manufacturing -- 0.8%
31 Honeywell International Inc. 1,761
Metals/Mining -- 1.1%
28 Alcoa, Inc. 2,359
Multi-Media -- 1.2%
34 Time Warner, Inc. 2,476
Oil & Gas -- 7.0%
17 Chevron Corp. 1,494
67 Enron Corp. 2,960
84 Exxon Mobil Corp. 6,760
25 Royal Dutch Petroleum Co., N.Y. Registered Shares
(Netherlands) 1,529
18 Texaco, Inc. 983
44 Williams Companies, Inc. 1,352
-------
15,078
Pharmaceuticals -- 7.0%
29 Abbot Laboratories 1,059
26 American Home Products Corp. 1,017
34 Bristol-Myers Squibb Co. 2,194
20 Eli Lilly & Co. 1,313
21 Johnson & Johnson 1,981
39 Merck & Co., Inc. 2,597
67 Pfizer, Inc. 2,178
37 Schering-Plough Corp. 1,556
14 Warner-Lambert Co. 1,131
-------
15,026
Restaurants/Food Services -- 0.7%
35 McDonald's Corp. 1,410
</TABLE>
See notes to financial statements.
84
<PAGE>
CORE EQUITY PORTFOLIO
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
<S> <C> <C>
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Retailing -- 10.8%
29 Bed Bath & Beyond, Inc. * $ 1,016
39 Best Buy Co., Inc. * 1,951
29 Dayton-Hudson Corp. 2,144
47 Gap, Inc. 2,155
69 Home Depot, Inc. 4,750
58 Kroger Co. * 1,100
111 Wal-Mart Stores, Inc. 7,702
80 Walgreen Co. 2,344
--------
23,162
Semi-Conductors -- 3.8%
26 Altera Corp. * 1,303
59 Intel Corp. 4,846
20 Texas Instruments, Inc. 1,928
--------
8,077
Telecommunications -- 6.8%
51 AT&T Corp. 2,601
43 BellSouth Corp. 2,020
27 GTE Corp. 1,879
49 MCI WorldCom, Inc. * 2,597
60 SBC Communications, Inc. 2,934
36 Sprint Corp. (FON Group) 2,413
--------
14,444
Telecommunications Equipment -- 4.7%
62 Lucent Technologies, Inc. 4,651
21 Motorola, Inc. 3,085
23 Nortel Networks Corp. (Canada) 2,318
--------
10,054
Utilities -- 0.7%
20 AES Corp. * 1,488
- --------------------------------------------------------------------------------
Total Long-Term Investments 203,116
(Cost $142,453)
- --------------------------------------------------------------------------------
Short-Term Investments -- 4.9%
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
<S> <C> <C>
Repurchase Agreement -- 4.9%
----------------------------
$ 10,464 Greenwich Capital Markets, Inc., in a joint trading
account at 3.50%, due 01/03/00, (Dated 12/31/99,
Proceeds $10,467, Secured by FHLMC, $10,938, 5.75%,
due 09/15/22; Market Value $10,678) 10,464
(Cost $10,464)
- --------------------------------------------------------------------------------
Total Investments -- 100.1% $213,580
(Cost $152,917)
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
85
<PAGE>
- --------------------------------------------------------------------------------
EQUITY GROWTH PORTFOLIO
Portfolio of Investments
- --------------------------------------------------------------------------------
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
<S> <C> <C>
- --------------------------------------------------------------------------------
Long-Term Investments -- 95.0%
- --------------------------------------------------------------------------------
Common Stock -- 95.0%
---------------------
Airlines -- 0.6%
126 Southwest Airlines, Inc. $ 2,045
Biotechnology -- 5.0%
203 Amgen, Inc. * 12,189
54 Biogen, Inc. * 4,593
28 Genzyme Corp. -- General Division * 1,250
-------
18,032
Broadcasting/Cable -- 0.5%
19 Clear Channel Communications, Inc. * 1,682
Computer Networks -- 3.1%
106 Cisco Systems, Inc. * 11,347
Computer Software -- 6.8%
27 Citrix Systems, Inc. * 3,312
184 Microsoft Corp. * 21,435
-------
24,747
Computers/Computer Hardware -- 8.4%
127 Dell Computer Corp. * 6,473
135 EMC Corp. * 14,730
85 International Business Machines Corp. 9,215
------
30,418
Consumer Products -- 2.6%
60 Gillette Co. 2,460
66 Procter & Gamble Co. 7,179
-------
9,639
Diversified -- 5.6%
113 General Electric Co. 17,560
74 Tyco International LTD (Bermuda) 2,885
-------
20,445
Electronics/Electrical Equipment -- 1.9%
72 Solectron Corp. * 6,809
Financial Services -- 5.3%
22 American Express Co. 3,583
155 Charles Schwab Corp. 5,939
50 Merrill Lynch & Co., Inc. 4,179
39 Morgan Stanley Dean Witter & Co. 5,528
-------
19,229
Food/Beverage Products -- 2.4%
16 Anheuser-Busch Companies, Inc. 1,155
84 Coca-Cola, Co. 4,894
76 PepsiCo, Inc. 2,689
-------
8,738
Health Care/Health Care Services -- 0.7%
27 Guidant Corp. * 1,256
32 Medtronic, Inc. 1,148
-------
2,404
Insurance -- 0.9%
32 American International Group, Inc. 3,444
Internet Services/Software -- 3.1%
151 America Online, Inc. * 11,402
</TABLE>
See notes to financial statements.
86
<PAGE>
EQUITY GROWTH PORTFOLIO
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
<S> <C> <C>
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Machinery & Engineering Equipment -- 3.6%
104 Applied Materials, Inc. * $ 13,176
Multi-Media -- 1.6%
80 Time Warner, Inc. 5,829
Pharmaceuticals -- 9.5%
53 Abbot Laboratories 1,941
63 American Home Products Corp. 2,489
73 Bristol-Myers Squibb Co. 4,671
51 Eli Lilly & Co. 3,375
48 Johnson & Johnson 4,514
94 Merck & Co., Inc. 6,286
141 Pfizer, Inc. 4,570
75 Schering-Plough Corp. 3,164
44 Warner-Lambert Co. 3,624
--------
34,634
Restaurants/Food Services -- 0.4%
32 McDonald's Corp. 1,293
Retailing -- 9.5%
73 Bed Bath & Beyond, Inc. * 2,548
46 Best Buy Co., Inc. * 2,316
148 Gap, Inc. 6,817
82 Home Depot, Inc. 5,641
206 Kroger Co. * 3,896
199 Wal-Mart Stores, Inc. 13,763
--------
34,981
Semi-Conductors -- 9.5%
172 Intel Corp. 14,177
64 KLA-Tencor Corp. * 7,136
93 Novellus Systems, Inc. * 11,362
25 Texas Instruments, Inc. 2,393
--------
35,068
Telecommunications -- 9.1%
166 AT&T Corp. 8,401
44 Bell Atlantic Corp. 2,698
54 BellSouth Corp. 2,507
29 GTE Corp. 2,060
75 MCI WorldCom, Inc. * 3,992
35 Nextel Communications, Inc., Class A * 3,571
113 SBC Communications, Inc. 5,494
35 Sprint Corp. (FON Group) 2,371
38 Vodafone AirTouch PLC, ADR (United Kingdom) 1,902
--------
32,996
Telecommunications Equipment -- 4.9%
132 Lucent Technologies, Inc. 9,889
53 Motorola, Inc. 7,871
--------
17,760
- --------------------------------------------------------------------------------
Total Long-Term Investments 346,118
(Cost $200,787)
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
87
<PAGE>
EQUITY GROWTH PORTFOLIO
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
<S> <C> <C>
- --------------------------------------------------------------------------------
Short-Term Investments -- 5.0%
- --------------------------------------------------------------------------------
Repurchase Agreement -- 5.0%
----------------------------
$ 18,146 Greenwich Capital Markets, Inc., in a joint trading
account at 3.50%, due 01/03/00, (Dated 12/31/99,
Proceeds $18,151, Secured by FHLMC, $18,959, 5.75%,
due 09/15/22; Market Value $18,509) $ 18,146
(Cost $18,146)
- --------------------------------------------------------------------------------
Total Investments -- 100.0% $364,264
(Cost $218,933)
- --------------------------------------------------------------------------------
</TABLE>
INDEX:
* -- Non-income producing security.
ADR -- American Depositary Receipt.
FHLMC -- Federal Home Loan Mortgage Corporation.
See notes to financial statements.
88
<PAGE>
- --------------------------------------------------------------------------------
CORE EQUITY AND EQUITY GROWTH PORTFOLIOS
Statement of Assets and Liabilities As of December 31, 1999
- --------------------------------------------------------------------------------
(Amounts in Thousands)
<TABLE>
<CAPTION>
Equity
Core Equity Growth
Portfolio Portfolio
<S> <C> <C>
- --------------------------------------------------------------------------------
ASSETS:
Investment securities, at value (Note 1) ......... $213,580 $364,264
Cash ............................................. -- 1
Receivable for interest and dividends ............ 83 160
- --------------------------------------------------------------------------------
Total Assets .................................. 213,663 364,425
- --------------------------------------------------------------------------------
LIABILITIES:
Payable to Custodian ............................. 181 --
Accrued liabilities: (Note 2)
Investment advisory fees ........................ 113 212
Administration fees ............................. 9 15
Other ........................................... 31 17
- --------------------------------------------------------------------------------
Total Liabilities ............................. 334 244
- --------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
BENEFICIAL INTERESTS .............................. $213,329 $364,181
- --------------------------------------------------------------------------------
Cost of investments .............................. $152,917 $218,933
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
89
<PAGE>
- --------------------------------------------------------------------------------
CORE EQUITY AND EQUITY GROWTH PORTFOLIOS
Statement of Operations For the period from August 12, 1999 to December
31, 1999
- --------------------------------------------------------------------------------
(Amounts in Thousands)
<TABLE>
<CAPTION>
Equity
Core Equity Growth
Portfolio Portfolio
<S> <C> <C>
- -------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividend ..................................................... $ 522 $ 570
Interest ..................................................... 192 290
Foreign taxes withheld ....................................... (2) (1)
- -------------------------------------------------------------------------------------------
Total investment income ................................... 712 859
- -------------------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees ..................................... 524 863
Administration fees .......................................... 35 58
Custody and accounting fees .................................. 18 28
Professional fees ............................................ 22 22
Trustees' fees and expenses .................................. 4 2
Other ........................................................ 6 6
- -------------------------------------------------------------------------------------------
Total expenses ............................................ 609 979
- -------------------------------------------------------------------------------------------
Less amounts waived (Note 2A) ................................ 70 35
- -------------------------------------------------------------------------------------------
Net expenses ............................................... 539 944
- -------------------------------------------------------------------------------------------
Net investment income (loss) .............................. 173 (85)
- -------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investment transactions .......... 2,121 (283)
Change in net unrealized appreciation of investments ......... 23,715 67,192
- -------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments .............. 25,836 66,909
- -------------------------------------------------------------------------------------------
Net increase in net assets from operations ................... $26,009 $66,824
- -------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
90
<PAGE>
- --------------------------------------------------------------------------------
CORE EQUITY AND EQUITY GROWTH PORTFOLIOS
Statement of Changes in Net Assets For the periods indicated
- --------------------------------------------------------------------------------
(Amounts in Thousands)
<TABLE>
<CAPTION>
Equity
Core Equity Growth
Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------
08/12/99* 08/12/99*
Through Through
12/31/99 12/31/99
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income (loss) ................................. $ 173 $ (85)
Net realized gain (loss) on investments ...................... 2,121 (283)
Change in net unrealized appreciation of investments ......... 23,715 67,192
- ----------------------------------------------------------------------------------------------------
Increase in net assets from operations ..................... 26,009 66,824
- ----------------------------------------------------------------------------------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS (Note 1):
Contributions ................................................ 207,886 332,120
Withdrawals .................................................. (20,566) (34,763)
- ----------------------------------------------------------------------------------------------------
Net increase from transactions in investors'
beneficial interests ........................................ 187,320 297,357
- ----------------------------------------------------------------------------------------------------
Total increase in net assets ............................... 213,329 364,181
NET ASSETS:
Beginning of period .......................................... -- --
- ----------------------------------------------------------------------------------------------------
End of period ................................................ $213,329 $ 364,181
- ----------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of operations.
See notes to financial statements.
91
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS
Notes to Financial Statements
- --------------------------------------------------------------------------------
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.
92
<PAGE>
PORTFOLIOS
Notes to Financial Statements
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 period from August 12, 1999 to December 31, 1999, the Advisor
voluntarily waived advisory fees of $69,918 and $34,534 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.
93
<PAGE>
PORTFOLIOS
Notes to Financial Statements
3. Investment Transactions
For the period from August 12, 1999 to December 31, 1999, purchases and sales
of investments (excluding short-term investments) were as follows (in
thousands):
<TABLE>
<CAPTION>
CEP EGP
- --------------------------------------------------------------------------
<S> <C> <C>
Purchases (excluding U.S. Government)........... $43,236 $52,438
Sales (excluding U.S. Government) .............. 11,187 1,116
</TABLE>
The portfolio turnover rates of CEP and EGP for the period from August 12, 1999
to December 31, 1999, were 6% and 1% respectively.
4. Federal Income Tax Matters
For Federal income tax purposes, the cost and unrealized appreciation
(depreciation) in value of the investment securities at December 31, 1999, are
as follows (in thousands):
<TABLE>
<CAPTION>
CEP EGP
<S> <C> <C>
- --------------------------------------------------------------------------
Aggregate cost ......................... $152,948 $219,810
-------- --------
Gross unrealized appreciation........... $ 62,562 $145,253
Gross unrealized depreciation........... (1,930) (799)
-------- --------
Net unrealized appreciation ............ $ 60,632 $144,454
======== ========
</TABLE>
94
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Trustees and Beneficial Unit Holders of
Mutual Fund Master Investment Trust
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets present fairly, in all material
respects, the financial position of Core Equity Portfolio and Equity Growth
Portfolio (separate portfolios of Mutual Fund Master Investment Trust,
hereafter referred to as the "Trust") at December 31, 1999, and the results of
each of their operations and the changes in each of their net assets for the
period August 12, 1999 (commencement of operations) through December 31, 1999,
in conformity with accounting principles generally accepted in the United
States. These financial statements are the responsibility of the Trust's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with auditing standards generally accepted in the
United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at December 31, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
February 10, 2000
95
<PAGE>
[This page intentionally left blank]
<PAGE>
[This page intentionally left blank]
<PAGE>
- --------------------------------------------------------------------------------
CHASE FUNDS ANNUAL REPORT
- --------------------------------------------------------------------------------
Investment Adviser, Administrator,
Shareholder and Fund Servicing
Agent and Custodian
Chase Funds Service Center
210 West 10th Street
Kansas City, MO 64105
Legal Counsel
Simpson Thacher & Bartlett
425 Lexington Avenue
New York, NY 10017
Independent Accountants
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
Chase Funds are distributed by Chase Fund Distributors, Inc., which is
unaffiliated with The Chase Manhattan Bank. Chase and its respective affiliates
receive compensation from Chase Funds for providing investment advisory and
other services.
This report is submitted for the general information of the shareholders of the
Funds. It is not authorized for distribution to prospective investors in the
Funds unless preceded or accompanied by a prospectus.
To obtain a prospectus for any of the Chase Funds, call 1-800-5-CHASE-0. The
prospectus contains more complete information, including charges and ongoing
expenses. Please read it carefully before you invest or send money.
(C) 2000 The Chase Manhattan Corporation. All Rights Reserved. February 2000
[CHASE LOGO]
CHASE FUNDS(SM)
Chase Funds Fulfillment Center
393 Manley Street
West Bridgewater, MA 02379-1039
