<PAGE> 1
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VISTA(SM) FAMILY OF MUTUAL FUNDS CHAIRMAN'S LETTER
June 17, 1996
Dear Shareholder:
We are pleased to present this Semi-Annual Report for the U.S.
Government Income Fund (renamed the U.S. Treasury Income Fund effective May 6,
1996), Short-Term Bond Fund and Bond Fund for the six months ended April 30,
1996. A summary of how these bond funds performed during this time period is
provided in this report. Please keep this report, so you can compare the
information with what you'll receive six months from now in your Annual Report.
RATE CUTS HELPED TO OFFSET BOND MARKET DECLINE
From November 1995 through January 1996, the price of U.S. government
bonds generally increased in value and corporate bonds generally performed
well, both supported by two Federal Reserve interest rate cuts -- one in
December and one in January.
The anticipation of continued rate declines, however, came to a halt in
February, as higher-than-expected economic indicators, in particular the
government's employment report, surprised bond market investors. As a result of
faster economic growth, the bond markets expected higher inflation, which
causes the purchasing power of bonds to erode. Bond prices, therefore, began to
decline in February. This trend continued through the end of April to the point
where the markets dismissed any possibility of further rate cuts by the Federal
Reserve, since too many rate cuts could cause an increase in inflation.
OUTLOOK
At the end of April, bond market participants expected the Federal
Reserve to increase rates modestly by the end of the year. In the short term,
however, we believe the Fed will not tighten monetary policy ahead of the
presidential election. But a continuation of strong economic numbers could
force it into action. Inflationary trends, in particular, will be a key driver
to Fed policy.
If you have any questions or comments about your Vista fixed income
fund, we encourage you to call your investment professional or 1-800-34-VISTA.
Please do not hesitate to call.
Sincerely,
/s/ FERGUS REID
-------------------
Fergus Reid
Chairman
INVESTMENTS IN MUTUAL FUNDS ARE SUBJECT TO RISK, INCLUDING THE POSSIBLE LOSS
OF PRINCIPAL. IN ADDITION, THEY ARE NOT DEPOSITS, OBLIGATIONS OF, ENDORSED OR
GUARANTEED BY CHASE, AND ARE NOT INSURED BY THE FDIC, THE FEDERAL RESERVE
BOARD OR ANY OTHER GOVERNMENT AGENCY.
<TABLE>
<CAPTION>
CONTENTS
<S> <C>
CHAIRMAN'S LETTER 1
FUND COMMENTARIES 2-4
PORTFOLIO OF INVESTMENTS 5-8
FINANCIAL STATEMENTS 9-11
NOTES TO FINANCIAL
STATEMENTS 12-17
PER SHARE DATA 18-19
</TABLE>
<PAGE> 2
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FUND COMMENTARY
VISTA U.S. GOVERNMENT INCOME FUND
OBJECTIVE: CAPITAL PRESERVATION AND MONTHLY DIVIDEND INCOME
For the six months ended April 30, 1996, the Vista U.S. Government
Income Fund had a total return (A Shares, without sales charge) of -0.78%.
In the last two months of 1995, the Fund positioned its portfolio to
take advantage of anticipated declining interest rates. Two rate cuts -- one in
December and one in January -- benefited Fund performance. The Fund's
expectation of continued declines, however, came to a halt in February, as
higher-than-expected economic indicators, in particular the government's
employment report, surprised bond market investors.
As a result of faster economic growth, bond prices in the Fund's
portfolio, therefore, began to decline in February, and this trend continued
through the end of April to the point where the markets largely dismissed any
possibility of further rate cuts by the Federal Reserve. But throughout this
volatile time period, the Fund's portfolio management team managed its
portfolio of government bonds to keep up with its respective benchmarks -- the
Lipper U.S. Government Funds Average and Lehman Treasury Bond Index (these
benchmarks generally reflect the average performance of the U.S. Treasury
securities market). At the end of April, in anticipation of rate increases
toward the end of the year, the Fund was taking a neutral position with its
portfolio, where adjustments could be made quickly in reaction to increases or
decreases in yields.
Note: On May 6, 1996, the Vista U.S. Government Income Fund changed its name
to the Vista U.S. Treasury Income Fund.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN*
WITHOUT WITH SALES
CLASS A SHARES SALES CHARGE CHARGE
<S> <C> <C>
One Year 7.00% 2.18%
Five Years 7.05% 6.07%
Since Inception (9/8/87) 8.96% 8.39%
<CAPTION>
CLASS B SHARES WITHOUT CDSC WITH CDSC#
<S> <C> <C>
One Year 6.25% 1.25%
Since Inception (11/4/93) 2.63% 1.56%
* Assumes dividend reinvestment and reflects fee
waivers. Without such waivers, performance would
have been reduced.
# Assumes a 5% CDSC for the one year period and a 3%
CDSC for the period since inception.
- ------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
GROWTH OF $10,000
[GRAPH]
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE WITH MARKET CONDITIONS. WHEN SHARES ARE
REDEEMED, THEY MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
THIS CHART ILLUSTRATES COMPARATIVE PERFORMANCE FOR $10,000 INVESTED IN CLASS A
SHARES OF THE VISTA U.S. GOVERNMENT INCOME FUND AND THE LIPPER GENERAL U.S.
GOVERNMENT FUND INDEX FROM SEPTEMBER 30, 1987 TO APRIL 30, 1996. THE FUND'S
PERFORMANCE INCLUDES A 4.50% SALES CHARGE AND ASSUMES THE REINVESTMENT OF ALL
DIVIDENDS AND CAPITAL GAINS. THE INDEX'S PERFORMANCE DOES NOT INCLUDE A SALES
CHARGE AND HAS BEEN ADJUSTED TO REFLECT REINVESTMENT OF ALL DIVIDENDS AND
CAPITAL GAINS ON MUTUAL FUNDS INCLUDED IN THE BENCHMARK.
THE LIPPER GENERAL U.S. GOVERNMENT FUND INDEX, AN EQUALLY-WEIGHTED PERFORMANCE
INDICATOR, TRACKS THE TOTAL RETURNS OF THE 30 LARGEST U.S. GOVERNMENT FUNDS IN
THE INDUSTRY. FUNDS INCLUDED IN THE INDEX ARE REPRESENTATIVE OF THE MARKET.
2
<PAGE> 3
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FUND COMMENTARY
VISTA SHORT-TERM BOND FUND
OBJECTIVE: CAPITAL PRESERVATION AND MONTHLY DIVIDEND INCOME
For the six months ended April 30, 1996, the Vista Short-Term Bond Fund
had a total return of 2.41%.
The Fund's management team managed to keep up with its benchmarks --
One-Year T-Bill Index and Lipper Short Investment Grade Debt Average (these
benchmarks generally reflect the average performance of short investment grade
securities). To meet these standards, the Fund maintained close to a one-year
average maturity of government and corporate bonds; the short-term yield curve
remained relatively flat, and the Fund's management team believed any higher
maturity would not have added any more value to the portfolio, but possibly
increased risk. In terms of sector allocation, the Fund, which is designed to
maintain an average maturity of no more than three years, invested mostly in
government securities, with less than one-third of its portfolio in corporate
bonds.
As the interest rate declines of December and January came to a halt in
February, the Fund's portfolio of bonds experienced some declines on news of
faster-than-expected economic growth, and this trend continued through the end
of April. Interest rates had climbed quickly enough to the point where the
markets largely dismissed the possibility of further rate cuts by the Federal
Reserve, since too many rate cuts could cause an increase in inflation. At the
end of April, in anticipation of possible rate increases toward the end of the
year, the Fund was taking a neutral position in preparation for a change in the
short-term flat yield curve, which would allow for quick adjustments to the
Fund's portfolio of bonds.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN*
SINCE
INCEPTION
1 YEAR 5 YEARS 11/30/90
------------- ------------- -------------
<S> <C> <C>
6.35% 5.51% 5.74%
* Assumes dividend reinvestment and
reflects fee waivers. Without such
waivers, performance would have been
reduced.
---------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
GROWTH OF $10,000
[GRAPHIC]
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE WITH MARKET CONDITIONS. WHEN SHARES ARE
REDEEMED, THEY MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
THIS CHART ILLUSTRATES COMPARATIVE PERFORMANCE FOR $10,000 INVESTED IN THE
VISTA SHORT-TERM BOND FUND AND THE LIPPER SHORT INVESTMENT GRADE DEBT FROM
NOVEMBER 30, 1990 TO APRIL 30, 1996. THE FUND'S PERFORMANCE ASSUMES DIVIDEND
REINVESTMENT AND REFLECTS WAIVERS AND/OR REIMBURSEMENTS AS DESCRIBED ABOVE. THE
INDEX'S PERFORMANCE HAS BEEN ADJUSTED TO REFLECT REINVESTMENT OF ALL DIVIDENDS
AND CAPITAL GAINS ON MUTUAL FUNDS INCLUDED IN THE BENCHMARK.
THE LIPPER SHORT INVESTMENT GRADE DEBT, AN EQUALLY-WEIGHTED PERFORMANCE
INDICATOR, TRACKS THE TOTAL RETURNS OF THE 30 LARGEST SHORT INVESTMENT GRADE
DEBT FUNDS IN THE INDUSTRY. FUNDS INCLUDED IN THE INDEX ARE REPRESENTATIVE OF
THE MARKET.
3
<PAGE> 4
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FUND COMMENTARY
VISTA BOND FUND
OBJECTIVE: CAPITAL PRESERVATION AND MONTHLY DIVIDEND INCOME
For the six months ended April 30, 1996, the Vista Bond Fund had a
total return of -0.32%.
Through its key corporate and government bond portfolio investment
strategies, the Fund's management team managed to keep pace with its
benchmarks, the Lehman Gov't/Corp. Bond Index and Lipper Corporate Debt BBB
Average (these benchmarks generally reflect the average performance of the U.S.
government and corporate bond market). In reaction to the price of U.S.
government bonds increasing in the last two months of 1995, the Fund increased
its portfolio value by emphasizing 20- to 30-year U.S. Treasury bonds. In
addition, to take advantage of the strong performance in corporate bonds, the
Fund overweighted its portfolio with corporate bonds of financial services
firms, given the fact that declining interest rates toward the end of 1995
strengthened earnings for the financial sector, such as banks.
But in February, as a result of faster-than-expected economic growth,
bond prices in the Fund's portfolio began to decline, and this trend continued
through the end of April to the point where the markets largely dismissed the
possibility of further rate cuts. At the end of April, in anticipation of
possible rate increases toward the end of the year, the Fund was keeping its
average maturity for its portfolio in the intermediate range, which would allow
for quick adjustments to short- or long-term bond positions.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN*
SINCE
INCEPTION
1 YEAR 5 YEARS 11/30/90
- ------------ ------------ ------------
<S> <C> <C>
8.29% 7.94% 8.22%
* Assumes dividend reinvestment and
reflects fee waivers. Without such
waivers, performance would have been
reduced.
- -----------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
GROWTH OF $10,000
[GRAPH]
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE WITH MARKET CONDITIONS. WHEN SHARES ARE
REDEEMED, THEY MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
THIS CHART ILLUSTRATES COMPARATIVE PERFORMANCE FOR $10,000 INVESTED IN THE
VISTA BOND FUND AND THE LIPPER CORPORATE DEBT BBB INDEX FROM NOVEMBER 30, 1990
TO APRIL 30, 1996. THE FUND'S PERFORMANCE ASSUMES DIVIDEND REINVESTMENT AND
REFLECTS WAIVERS AND/OR REIMBURSEMENT AS DESCRIBED ABOVE. THE INDEX'S
PERFORMANCE HAS BEEN ADJUSTED TO REFLECT REINVESTMENT OF ALL DIVIDENDS AND
CAPITAL GAINS ON MUTUAL FUNDS INCLUDED IN THE BENCHMARK.
THE LIPPER CORPORATE DEBT BBB INDEX, AN EQUALLY WEIGHTED PERFORMANCE INDICATOR,
TRACKS THE TOTAL RETURNS OF THE 30 LARGEST CORPORATE DEBT FUNDS IN THE
INDUSTRY. FUNDS INCLUDED IN THE INDEX ARE REPRESENTATIVE OF THE MARKET.
4
<PAGE> 5
VISTA U.S. GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Issuer Amount Value
- ------------------------------------ ------------ -------------
<S> <C> <C>
LONG-TERM INVESTMENTS -- 98.4%
U.S. Treasury Bond,
10.750%, due 08/15/05............. $ 3,900,000 $ 4,971,876
-------------
U.S. Treasury Notes,
5.000%, due 02/15/99............... 8,000,000 7,761,280
5.625%, due 02/28/01............... 17,000,000 16,452,770
5.625%, due 01/31/98............... 7,750,000 7,706,367
6.125%, due 05/15/98............... 4,000,000 4,004,360
6.375%, due 03/31/01............... 300,000 299,436
6.375%, due 01/15/99............... 9,000,000 9,043,560
7.375%, due 11/15/97............... 9,000,000 9,182,790
7.500%, due 05/15/02............... 4,500,000 4,725,000
7.500%, due 02/15/05............... 2,400,000 2,526,384
8.500%, due 02/15/20............... 24,400,000 28,288,628
9.125%, due 05/15/99............... 9,632,000 10,384,452
-------------
100,375,027
-------------
<CAPTION>
Principal
Issuer Amount Value
- ------------------------------------ ------------ -------------
<S> <C> <C>
TOTAL LONG-TERM INVESTMENTS
(Cost $106,822,523)................ $ 105,346,903
-------------
SHORT-TERM INVESTMENTS -- 0.1%
U.S. Treasury Bill, 06/27/96
(Cost $114,097)................... $ 115,000 114,097
-------------
TOTAL INVESTMENTS --
(COST $106,936,620)................ 98.5% $ 105,461,000
===============
</TABLE>
See notes to financial statements.
5
<PAGE> 6
VISTA BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Issuer Amount Value
- -------------------------------------- ------------ ------------
<S> <C> <C>
LONG-TERM INVESTMENTS -- 97.4%
CORPORATE BONDS & NOTES -- 19.7%
Airlines -- 2.3%
AMR Corp.,
9.880%, due 06/15/20................. $ 370,000 $ 431,342
AMR Corp.,
10.000%, due 02/01/01................ 880,000 971,423
-----------
1,402,765
-----------
Banking -- 3.2%
Bankers Trust of New York,
8.250%, due 07/02/96................. 1,000,000 1,003,920
First Chicago,
9.875%, due 08/15/00................. 250,000 278,063
Swiss Bank Corp. of New York,
7.000%, due 10/15/15................. 667,000 627,874
-----------
1,909,857
-----------
Chemicals -- 0.9%
Dupont,
8.650%, due 12/01/97................. 500,000 516,635
-----------
Computers/Computer -- 0.8%
IBM Corp.,
7.000%, due 10/30/25................. 500,000 460,625
-----------
Consumer -- 0.7%
Philip Morris Corp.,
9.250%, due 12/01/97................. 400,000 417,220
-----------
Financial Services -- 6.3%
Associates Corp.,
7.920%, due 11/19/98................. 250,000 258,655
Commercial Credit,
5.900%, due 09/01/03................. 500,000 465,860
General Motors Acceptance Corp.,
6.300%, due 09/10/97................. 300,000 300,759
Golden West Financial Corp.,
9.150%, due 05/23/98................. 500,000 524,815
Lehman Brothers Holdings,
7.625%, due 07/15/99................. 300,000 304,002
Merrill Lynch,
7.000%, due 04/27/08................. 500,000 482,770
Merrill Lynch & Co., Inc.,
6.000%, due 03/01/01................. 500,000 481,970
Morgan Stanley Group,
7.500%, due 09/01/99................. 400,000 406,484
Tenneco Credit,
10.125%, due 12/01/97................ 500,000 527,070
-----------
3,752,385
-----------
Oil & Gas -- 0.9%
BP America Inc.,
8.750%, due 02/01/03................. 500,000 547,365
-----------
Shipping/Transportation -- 1.4%
Hertz Corp.,
6.625%, due 07/15/00................. 575,000 568,508
Ryder System, Inc.,
7.540%, due 09/20/99................. 250,000 255,780
-----------
824,288
-----------
<CAPTION>
Principal
Issuer Amount Value
- -------------------------------------- ------------ ------------
<S> <C> <C>
Telecommunications -- 0.7%
Pacific Bell Corp.,
6.625%, due 10/15/34................. $ 500,000 $ 428,045
-----------
Utilities -- 2.5%
National Rural Utilities,
9.820%, due 01/21/99................. 500,000 540,160
Orange & Rockland Utility, Corp.,
6.500%, due 10/15/97................. 500,000 500,625
Southern California Edison Corp.,
8.250%, due 02/01/00................. 500,000 522,285
-----------
1,563,070
-----------
TOTAL CORPORATE BONDS & NOTES
(Cost $11,682,383)................... 11,822,255
-----------
U.S. GOVERNMENT & AGENCY OBLIGATIONS --
64.0%
U.S. Government Obligations -- 61.0%
U.S. Treasury Linked Custody Receipts --
0.8%
6.000%, due 08/15/09................. 500,000 450,760
-----------
U.S. Treasury Bonds -- 16.9%
7.125%, due 02/15/23................. 418,000 420,483
7.500%, due 11/15/16................. 1,628,000 1,702,269
7.625%, due 11/15/22................. 648,000 689,712
7.750%, due 01/31/00................. 2,500,000 2,615,625
8.125%, due 05/15/21................. 1,600,000 1,791,248
8.750%, due 08/15/20................. 2,469,000 2,936,950
-----------
10,156,287
-----------
U.S. Treasury Notes -- 43.3%
4.750%, due 08/31/98................. 600,000 582,654
5.000%, due 01/31/99................. 1,900,000 1,843,893
5.000%, due 02/15/99................. 2,500,000 2,425,400
5.125%, due 02/28/98................. 500,000 492,265
5.125%, due 03/31/98................. 1,500,000 1,475,865
5.125%, due 11/30/98................. 500,000 487,655
5.250%, due 07/31/98................. 1,600,000 1,572,000
5.375%, due 05/31/98................. 1,000,000 986,720
5.750%, due 08/15/03................. 1,000,000 951,250
6.000%, due 10/15/99................. 1,500,000 1,488,510
6.125%, due 09/30/00................. 750,000 742,268
6.250%, due 02/15/03................. 1,000,000 982,660
6.375%, due 08/15/02................. 580,000 575,378
6.500%, due 05/15/05................. 400,000 394,748
6.875%, due 04/30/97................. 300,000 303,327
7.125%, due 10/15/98................. 530,000 541,840
7.250%, due 08/15/04................. 1,315,000 1,362,458
7.750%, due 11/30/99................. 1,800,000 1,880,712
7.875%, due 11/15/04................. 1,000,000 1,076,410
7.875%, due 04/15/98................. 362,000 374,047
</TABLE>
See notes to financial statements.
6
<PAGE> 7
VISTA BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Issuer Amount Value
- -------------------------------------- ------------ ------------
<S> <C> <C>
8.000%, due 05/15/01................. $ 425,000 $ 453,288
8.250%, due 07/15/98................. 147,000 153,431
8.500%, due 02/15/20................. 2,923,000 3,388,839
8.750%, due 10/15/97................. 1,300,000 1,350,986
-----------
25,886,604
-----------
U.S. Government Agency Obligations --
3.0%
Federal National Mortgage Association,
8.150%, due 05/11/98................. 760,000 787,550
Federal National Mortgage Association,
9.200%, due 09/11/00................. 900,000 988,875
-----------
1,776,425
-----------
TOTAL U.S. GOVERNMENT & AGENCY
OBLIGATIONS
(Cost $38,640,367)................... 38,270,076
-----------
YANKEE SECTOR -- 1.7%
Banking -- 1.7%
ABN-AMRO Bank of Chicago, N.V.,
7.250%, due 05/31/05................. 500,000 500,565
International Bank for Reconstruction
& Development,
8.200%, due 03/15/11................. 500,000 545,000
-----------
TOTAL YANKEE SECTOR
(Cost $1,033,011).................... 1,045,565
-----------
ASSET BACKED SECURITIES -- 12.0%
Collateralized Mortgage Obligations --
6.1%
Federal Home Loan Mortgage Corp.,
Series 1819, Class E,
6.000%, due 02/15/11................. 1,000,000 915,420
Federal Home Loan Mortgage Corp., Ser.
1261, Class M,
8.000%, due 02/15/03................. 500,000 505,465
<CAPTION>
Principal
Issuer Amount Value
- -------------------------------------- ------------ ------------
<S> <C> <C>
Federal National Mortgage Association,
Ser. 1993-39, Class E,
5.500%, due 11/25/97................. $ 153,890 $ 152,639
Federal Home Loan Mortgage Corp., Ser.
1704, Class C,
6.250%, due 07/15/08................. 1,200,000 1,156,115
Federal National Mortgage Association,
Ser. G93-34, Class PJ,
6.600%, due 12/25/22................. 1,000,000 940,000
-----------
3,669,639
-----------
Credit Card Trusts -- 5.9%
Banc One Credit Card Master Trust,
Ser. 1995-A, Class A,
6.150%, due 07/15/02................. 2,000,000 1,965,620
Standard Credit Card Master Trust,
Ser. 1994-4, Class A,
8.250%, due 11/07/03................. 1,500,000 1,591,875
-----------
3,557,495
-----------
TOTAL ASSET BACKED SECURITIES
(Cost $7,259,827).................... 7,227,134
-----------
TOTAL LONG-TERM INVESTMENTS
(Cost $58,615,588)................... 58,365,030
-----------
COMMERCIAL PAPER -- 0.9%
Financial Services -- 0.9%
Merrill Lynch & Co., Inc.,
5.350%, due 05/01/96
(Cost $550,000)...................... 550,000 550,000
---------
TOTAL INVESTMENTS --
(COST $59,165,588)................... 98.3% $ 58,915,030
=============
</TABLE>
See notes to financial statements.
7
<PAGE> 8
VISTA SHORT-TERM BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Issuer Amount Value
- -------------------------------------- ------------ ------------
<S> <C> <C>
LONG-TERM INVESTMENTS -- 94.0%
CORPORATE BONDS & NOTES -- 26.3%
Financial Services -- 16.4%
Associates Corp.,
6.875%, due 01/15/97................. $ 485,000 $ 487,963
Caterpillar Financial Services,
5.140%, due 12/16/96................. 800,000 797,248
Citicorp, MTN,
8.570%, due 03/10/97................. 250,000 255,548
Dow Capital BV,
5.750%, due 09/15/97................. 250,000 247,835
Golden West Financial Corp.,
9.150%, due 05/23/98................. 1,000,000 1,049,630
Household Finance Corp.,
7.500%, due 03/15/97................. 500,000 506,210
Lehman Brothers Holdings,
6.240%, due 01/12/99................. 1,000,000 999,600
Nationsbank Corp.,
6.625%, due 01/15/98................. 350,000 351,645
PACCAR Financial Corp.,
4.530%, due 10/21/96................. 1,400,000 1,391,950
-----------
6,087,629
-----------
Food & Beverage Products -- 1.9%
Pepsico, Inc.,
5.000%, due 02/24/97................. 215,000 213,603
Pepsico, Inc.,
7.875%, due 08/15/96................. 500,000 502,965
-----------
716,568
-----------
Telecommunications -- 4.1%
Pacific Northwest Bell Telephone
Corp.,
7.500%, due 12/01/96................. 1,000,000 1,009,350
Southwestern Bell Telephone Corp.,
8.300%, due 06/01/96................. 500,000 500,690
-----------
1,510,040
-----------
Utilities -- 3.9%
National Rural Utilities,
5.400%, due 01/15/99................. 500,000 486,105
Pacific Gas & Electric Co.,
7.330%, due 11/12/96................. 450,000 453,060
Southern California Edison,
6.125%, due 07/15/97................. 500,000 499,605
-----------
1,438,770
-----------
TOTAL CORPORATE BONDS & NOTES
(Cost $9,796,694)................... 9,753,007
-----------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 67.7%
U.S. Treasury Notes,
4.375%, due 08/15/96................. 2,000,000 1,995,000
5.000%, due 02/15/99................. 1,500,000 1,455,240
5.125%, due 11/30/98................. 1,000,000 975,310
<CAPTION>
Principal
Issuer Amount Value
- -------------------------------------- ------------ ------------
<S> <C> <C>
5.250%, due 07/31/98................. $ 500,000 $ 491,250
5.500%, due 11/15/98................. 500,000 492,345
5.625%, due 10/31/97................. 500,000 497,810
5.875%, due 05/31/96................. 2,000,000 2,000,940
6.000%, due 11/30/97................. 2,000,000 2,000,940
6.000%, due 12/31/97................. 750,000 750,352
6.125%, due 05/31/97................. 1,000,000 1,003,750
6.125%, due 05/15/98................. 1,000,000 1,001,090
6.500%, due 08/15/97................. 1,400,000 1,410,724
6.750%, due 05/31/97................. 2,000,000 2,020,320
7.000%, due 09/30/96................. 1,500,000 1,510,080
7.250%, due 02/15/98................. 500,000 510,080
7.375%, due 11/15/97................. 2,500,000 2,550,775
7.500%, due 01/31/97................. 1,000,000 1,014,060
8.750%, due 10/15/97................. 1,000,000 1,039,220
-----------
22,719,286
-----------
Federal Home Loan Bank, Debenture,
4.333%, due 10/22/96................. 1,000,000 978,750
Federal National Mortgage
Association, MTN,
5.680%, due 10/07/96................. 1,000,000 1,000,780
Government Mortgage Association
Corp., MTN,
7.750%, due 12/10/96................. 200,000 202,310
Government Mortgage Association
Corp., MTN,
5.700%, due 09/02/98................. 150,000 147,566
-----------
2,329,406
-----------
TOTAL U.S. GOVERNMENT & AGENCY
OBLIGATIONS
(Cost $24,992,221)................... 25,048,692
-----------
TOTAL LONG-TERM INVESTMENTS
(Cost $34,788,915)................... 34,801,699
-----------
SHORT-TERM INVESTMENTS -- 4.6%
REPURCHASE AGREEMENT -- 4.6%
Morgan Stanley & Co., Inc., 5.30%, due
05/01/96, (Dated 04/30/96; Proceeds
$1,715,252, Secured by U.S. Treasury
Bond; $1,665,000 at 7.625%, due
02/15/07; Market Value $1,761,489)
(Cost $1,715,000)................... 1,715,000 1,715,000
---------
TOTAL INVESTMENTS --
(COST $36,503,915)................... 98.6% $ 36,516,699
=============
</TABLE>
- ---------------
MTN = Medium Term Note
See notes to financial statements.
8
<PAGE> 9
VISTA MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Vista
U.S. Government Vista Short-Term
Income Fund Bond Fund Bond Fund
--------------- --------------- ---------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value (Note 1)................ $ 105,461,000 $ 58,915,030 $ 36,516,699
Cash.................................................... -- 654 14,638
Receivables:
Interest.............................................. 2,062,362 996,272 612,385
Trust shares sold..................................... 137,923 142,612 179,112
--------------- --------------- ---------------
Total assets........................................ 107,661,285 60,054,568 37,322,834
--------------- --------------- ---------------
LIABILITIES:
Payable for Trust shares redeemed....................... 141,386 52,138 189,777
Payable to custodian.................................... 94,581 -- --
Dividends payable....................................... 183,172 10,330 12,385
Accrued liabilities: (Note 2)
Administration fees................................... 7,104 -- --
Distribution fees..................................... 22,494 6,408 1,826
Investment advisory fees.............................. 15,095 -- --
Shareholder servicing fees............................ 6,161 -- --
Sub-administration fees............................... 4,443 2,499 1,523
Custodian............................................. 22,939 -- --
Other................................................. 95,252 58,800 66,562
--------------- --------------- ---------------
Total Liabilities................................ 592,627 130,175 272,073
--------------- --------------- ---------------
NET ASSETS:
Paid in capital......................................... $ 114,816,928 $ 59,282,383 $ 37,399,589
Accumulated undistributed net investment income
(loss)................................................ (69,666) (16,033) 36,969
Accumulated undistributed net realized gain (loss) on
investment transactions............................... (6,202,984) 908,601 (398,582)
Net unrealized appreciation/(depreciation) of
investments........................................... (1,475,620) (250,558) 12,785
--------------- --------------- ---------------
Net Assets.......................................... $ 107,068,658 $ 59,924,393 $ 37,050,761
============ =============== ===============
Class A/Vista Shares................................ $ 96,661,998 $ 59,924,393 $ 37,050,761
============ =============== ===============
Class B Shares...................................... $ 10,406,660
============
Shares of beneficial interest outstanding (no par value;
unlimited number of shares authorized):
Class A/Vista Shares................................ 8,793,644 5,714,109 3,690,416
============ =============== ===============
Class B Shares...................................... 949,534
============
Class A/Vista Shares:
Net asset value and redemption price per share
(net assets/shares outstanding)....................... $10.99 $10.49 $10.04
============ =============== ===============
Maximum offering price per share (net asset value per
share/95.5% for VUSGI)................................ $11.51 $10.49 $10.04
============ =============== ===============
Class B Shares:
Net asset value and offering price per share
(net assets/shares outstanding)....................... $10.96
============
Cost of Investments....................................... $ 106,936,620 $ 59,165,588 $ 36,503,915
============ =============== ===============
</TABLE>
See notes to financial statements.
9
<PAGE> 10
VISTA MUTUAL FUNDS
STATEMENT OF OPERATIONS For the six months ended April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Vista
U.S. Government Vista Short-Term
Income Fund Bond Fund Bond Fund
--------------- --------------- ---------------
<S> <C> <C> <C>
INTEREST INCOME............................................ $ 3,741,492 $ 1,925,716 $ 1,086,445
--------------- --------------- ---------------
EXPENSES: (Note 2)
Shareholder servicing fees:
Class A Shares......................................... 126,245 -- --
Class B Shares......................................... 13,447 -- --
Distribution fees:
Class A Shares......................................... 126,245 74,061 46,383
Class B Shares......................................... 40,340 -- --
Investment Advisory fees................................. 167,630 88,873 46,384
Administration fees...................................... 55,877 29,624 18,553
Sub-administration fees.................................. 27,938 14,812 9,277
Custodian fees........................................... 29,812 -- --
Amortization of organization costs (Note 1).............. -- 305 305
Printing and postage..................................... 6,210 647 323
Professional fees........................................ 24,655 15,820 13,808
Registration costs....................................... 29,879 123 248
Transfer agent fees...................................... 109,546 16,295 22,626
Trustees fees............................................ 3,534 1,878 1,176
Other.................................................... 7,811 3,859 102
--------------- --------------- ---------------
Total expenses......................................... 769,169 246,297 159,185
--------------- --------------- ---------------
Less amounts waived (Note 2E).............................. 225,939 157,012 102,973
--------------- --------------- ---------------
Net expenses........................................... 543,230 89,285 56,212
--------------- --------------- ---------------
Net investment income............................. 3,198,262 1,836,431 1,030,233
--------------- --------------- ---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments............................................ 561,006 912,354 --
Futures and written options transactions............... (239,729) -- --
--------------- --------------- ---------------
Net realized gain (loss)................................. 321,277 912,354 --
--------------- --------------- ---------------
Change in net unrealized appreciation/(depreciation) on
investments............................................ (4,420,234) (2,975,012) (152,166)
Net realized and unrealized gain (loss) on investments... (4,098,957) (2,062,658) (152,166)
--------------- --------------- ---------------
Net increase/(decrease) in net assets from operations.... $ (900,695) $ (226,227) $ 878,067
============ =============== ===============
</TABLE>
See notes to financial statements.
10
<PAGE> 11
VISTA MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS For the periods indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Vista
U.S. Government Vista Short-Term
Income Fund Bond Fund Bond Fund
----------------------------- --------------------------- ---------------------------
11/01/95 Year 11/01/95 Year 11/01/95 Year
through ended through ended through ended
04/30/96 10/31/95 04/30/96 10/31/95 04/30/96 10/31/95
------------- ------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS:
Net investment income............... $ 3,198,262 $ 6,717,656 $ 1,836,431 $ 3,556,582 $ 1,030,233 $ 1,847,219
Net realized gain (loss) on
investments, futures and options
transactions...................... 321,277 (3,753,121) 912,354 330,075 -- (1,467)
Change in net unrealized
appreciation/ (depreciation) on
investments and futures........... (4,420,234) 11,426,144 (2,975,012) 4,034,751 (152,166) 556,820
------------- ------------- ------------ ------------ ------------ ------------
Increase (decrease) in net assets
from operations................. (900,695) 14,390,679 (226,227) 7,921,408 878,067 2,402,572
------------- ------------- ------------ ------------ ------------ ------------
NET EQUALIZATION DEBITS (Note 1E)...... -- (20,821) -- (10,848) -- (7,716)
------------- ------------- ------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM: (Note 1F)
Net investment income:
Class A........................... (2,917,985) (6,221,262) (1,859,363) (3,546,956) (1,034,961) (1,840,470)
Class B........................... (273,961) (474,068) -- -- -- --
Net realized gain on investment
transactions:
Class A........................... -- -- (293,787) (122,330) -- --
------------- ------------- ------------ ------------ ------------ ------------
Total dividends and
distributions.................. (3,191,946) (6,695,330) (2,153,150) (3,669,286) (1,034,961) (1,840,470)
------------- ------------- ------------ ------------ ------------ ------------
TRANSACTIONS IN SHARES OF BENEFICIAL
INTEREST:
Proceeds from shares sold:
Class A/Vista Shares.............. 11,298,333 18,943,386 6,157,615 4,296,852 7,272,286 7,865,450
Class B Shares.................... 2,344,685 6,947,722 -- -- -- --
Reinvestment of dividends and
distributions:
Class A/Vista Shares.............. 1,867,966 3,953,641 2,079,602 3,498,583 969,497 1,730,468
Class B Shares.................... 215,292 385,208 -- -- -- --
Payment for shares redeemed:
Class A/Vista Shares.............. (11,920,629) (30,405,442) (3,218,338) (7,190,891) (7,279,876) (9,891,946)
Class B Shares.................... (2,406,209) (2,445,068) -- -- -- --
------------- ------------- ------------ ------------ ------------ ------------
Net increase (decrease) in net
assets from shares of
beneficial interest
transactions................... 1,399,438 (2,620,553) 5,018,879 604,544 961,907 (296,028)
------------- ------------- ------------ ------------ ------------ ------------
Total increase (decrease) in net
assets......................... (2,693,203) 5,053,975 2,639,502 4,845,818 805,013 258,358
NET ASSETS:
Beginning of period................... 109,761,861 104,707,886 57,284,891 52,439,073 36,245,748 35,987,390
------------- ------------- ------------ ------------ ------------ ------------
End of period......................... $ 107,068,658 $ 109,761,861 $ 59,924,393 $ 57,284,891 $ 37,050,761 $ 36,245,748
=============== =============== ============= ============= ============= =============
</TABLE>
See notes to financial statements.
11
<PAGE> 12
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES -- Mutual Fund Group (the
"Trust") was organized on May 11, 1987 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. Vista U.S. Government Income
Fund ("VUSGI"), Vista Bond Fund ("VBF"), and Vista Short-Term Bond Fund
("VSTBF"), collectively, the "Funds", are three separate portfolios of The
Trust. The VUSGI Fund offers two classes of shares; referred to as Class A
Shares and Class B Shares. Class A shares generally provide for a front-end
sales charge while Class B shares provide for a contingent deferred sales
charge. VBF and VSTBF offer only one class of shares hereinafter referred to as
the "Vista Class". All classes of shares have equal rights as to earnings,
assets and voting privileges except that each class may bear different
distribution fees and each class has exclusive voting rights with respect to its
distribution plan.
The investment objectives for each of the Funds are discussed in the respective
Fund Commentaries included elsewhere in this report.
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.
The following is a summary of significant accounting policies followed by
the Funds:
A. Valuation of investments -- 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 -- It is the Trust's policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government Agency
securities. All collateral is held 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 Trust
may be delayed or limited.
C. Futures contracts -- When a Fund enters into a futures contract, it
makes an initial margin deposit in a segregated account, either in cash or
liquid securities. Thereafter, the futures contract is marked to market and
the fund makes (or receives) additional cash payments daily to the broker.
Changes in the value of the contract are recorded as unrealized
appreciation/depreciation until the contract is closed or settled.
12
<PAGE> 13
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
The VUSGI may enter into futures contracts only on exchanges or boards of
trade. The exchange or board of trade acts as the counterparty to each
futures transaction, therefore, the Fund's credit risk is limited to
failure of the exchange or board of trade.
As of April 30, 1996, VUSGI had no outstanding futures contracts.
D. Written options -- When a Fund writes an option on a futures contract,
an amount equal to the premium received by the Fund is included in the
Fund's Statement of Assets and Liabilities as an asset and corresponding
liability. The amount of the liability is adjusted daily to reflect the
current market value of the written options and the change is recorded in a
corresponding unrealized gain or loss account. When a written option
expires on its stipulated expiration date, or when a closing transaction is
entered into, the related liability is extinguished and the Fund realizes a
gain (or loss if the cost of the closing transaction exceeds the premium
received when the option was written).
The VUSGI writes options on U.S. Treasury futures. These options are
settled for cash and subject the Fund to market risk in excess of the
amounts that are reflected in the Statement of Assets and Liabilities. The
Fund, however, is not subject to credit risk on written options as the
counterparty has already performed its obligation by paying a premium at
the inception of the contract.
As of April 30, 1996 VUSGI had no outstanding written options.
E. 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 determined on the basis of coupon interest
accrued adjusted for amortization of premiums, except VUSGI, and accretion
of discounts.
F. Expenses -- Expenses directly attributable to a Fund are charged to
that Fund; other expenses of the Trust are allocated proportionately among
each of 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 net
asset value per share of each class, investment income, realized and
unrealized gains and losses and expenses other than class specific expenses
are allocated daily to each class of shares based upon the proportion of
net assets of each class at the beginning of each day.
G. Organization costs -- Organization and initial registration costs
incurred in connection with establishing the Funds have been deferred and
are being amortized on a straight-line basis over a sixty month period
beginning at the commencement of operations of each Fund.
H. Federal income taxes -- Each Fund is treated as a separate taxable
entity for Federal income tax purposes. The Trust'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, the Trust intends to make distributions as required to avoid
excise taxes. Accordingly, no provision for Federal income or excise tax is
necessary.
I. 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 --
13
<PAGE> 14
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
"temporary differences") such amounts are reclassified within the capital
accounts based on their Federal tax-basis treatment. Dividends and
distributions which exceed net investment income or net realized capital
gains for financial reporting purposes but not for tax purposes are
reported as distributions in excess of net investment income or net
realized capital gains.
J. Equalization -- In prior years, the Funds followed the practice of
equalization by which a portion of proceeds from sales and cost of
redemptions of Fund shares is credited or charged to undistributed net
investment income. In the current fiscal period ending April 30, 1996, the
Funds discontinued the practice of equalization, resulting in
reclassifications from undistributed net investment income of $917, $6,008
and $460 to accumulated paid-in capital for VUSGI, VBF, and VSBF
respectively.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A. Investment advisory fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank, N.A. ("Chase" or the "Adviser") acts
as the Investment Adviser to the Funds. Chase is a direct wholly-owned
subsidiary of The Chase Manhattan Corporation. As Investment Adviser, 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%, 0.30% and 0.25% of the average daily net assets for VUSGI, VBF and
VSTBF, respectively. The Adviser, voluntarily waived all or a portion of
its fees as outlined in Note 2.E. below.
B. Shareholder servicing fees -- The Trust has adopted an Administrative
Services Plan which, among other things, provides that the Trust on behalf
of the Funds may obtain the services of one or more Shareholder Servicing
Agents. For its services relative to VUSGI, the Shareholder Servicing Agent
will receive a fee. The fee is computed daily and paid monthly at an annual
rate equal to 0.25% of the average daily net assets for VUSGI. No
shareholder Servicing fees have been charged for VBF and VSTBF.
Since inception of VUSGI, Chase, and certain affiliates have been the only
Shareholder Servicing Agents of the Fund. The Shareholder Servicing Agents
have voluntarily waived all or a portion of their fees as outlined in Note
2.E. below.
C. Distribution and sub-administration fees -- Pursuant to a Distribution
and Sub-Administration Agreement, Vista Fund Distributors, Inc. (the
"Distributor"), a wholly owned subsidiary of The BISYS Group, Inc., acts as
the Trust's exclusive underwriter and promotes and arranges for the sale of
each Fund's shares. In addition, the Distributor provides certain
sub-administration services to the Trust, including providing officers,
clerical staff and office space for an annual fee of 0.05% of the average
daily net assets of each Fund.
The Trustees have adopted Distribution Plans (the "Distribution Plans") for
Class A and B for the VUSGI and the Vista class of shares for VBF and VSTBF
in accordance with Rule 12b-1 under the 1940 Act. The Class A and the Vista
Class Distribution Plans provide that each Fund shall pay distributions
fees, including payments to the Distributor, at annual rates not to exceed
0.20% of the average daily net assets of the Class A and Vista Shares of
each Fund for distribution services. The Class B Distribution Plan provides
that VUSGI shall pay distribution fees, including payments to the
14
<PAGE> 15
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
Distributor, at an annual rate not to exceed 0.75% of the average annual
net assets of the Class B Shares for its distribution services.
Under Class A and Vista Class Distribution Plans, the Class A and Vista
shares are also permitted to pay an additional fee at an annual rate not to
exceed 0.05% of its average daily net assets in anticipation of, or as
reimbursement for, expenses incurred in connection with print or electronic
media advertising in connection with the sale of Fund shares. When such
expenses are incurred, the maximum compensation paid by the Class A and
Vista shares under the Class A and Vista Distribution Plan would be at an
annual rate of 0.25% of its average daily net assets.
The Distributor voluntarily waived all or a portion of distribution fees as
outlined in Note 2.E. below.
D. 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
each Fund a fee computed at the annual rate equal to 0.10% of the
respective Fund's average daily net assets. The Administrator voluntarily
waived all or a portion of the administration fees as outlined in Note 2.E.
below.
E. Waivers of fees -- For the period ended April 30, 1996, the Investment
Adviser, Shareholder Servicing Agent, Administrator and Distributor
voluntarily waived fees for each of the Funds as follows:
<TABLE>
<CAPTION>
Fee VUSGI VBF VSTBF
-------------------------------------------- --------- --------- ---------
<S> <C> <C> <C>
Administration.............................. $ 23,372 $ 29,624 $ 18,553
Distribution................................ 25,249 38,515 38,036
Investment Advisory......................... 76,322 88,873 46,384
Shareholder Servicing....................... 100,996 -- --
--------- --------- ---------
Total....................................... $ 225,939 $ 157,012 $ 102,973
========= ========= =========
</TABLE>
F. Other -- Certain officers of the Trust are officers of Vista Fund
Distributors, Inc. or of its parent corporation, BISYS.
Chase provides portfolio accounting and custody services for the Funds.
Compensation for such services are presented in the Statement of Operations
as custodian fees.
3. INVESTMENT TRANSACTIONS -- For the six month period ended April 30, 1996,
purchases and sales of investments (excluding short-term investments) were
as follows:
<TABLE>
<CAPTION>
VUSGI VBF VSTBF
------------ ------------ -----------
<S> <C> <C> <C>
Purchases (excluding U.S.
Government)......................... -- $ 3,158,749 $ 3,921,904
Sales (excluding U.S. Government)..... -- 5,813,918 4,017,466
Purchases of U.S. Government.......... $ 73,188,162 30,670,700 3,472,830
Sales of U.S. Government.............. 66,551,106 23,382,518 1,031,350
</TABLE>
15
<PAGE> 16
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
Written Option Transactions:
<TABLE>
<CAPTION>
VUSGI
------------------------
Number of Premiums
Calls Contracts Received
- --------------------------------------------------------------- --------- --------
<S> <C> <C>
Options outstanding at 10/31/95........................... -- --
Options written........................................... 70 $ 38,847
Options terminated in closing purchase transactions....... (70) (38,847)
--------- --------
Options outstanding at 4/30/96............................ -- --
======== =========
<CAPTION>
Puts
- ---------------------------------------------------------------
<S> <C> <C>
Options outstanding at 10/31/95........................... -- --
Options written........................................... 75 $ 69,005
Options terminated in closing purchase transactions....... (75) (69,005)
--------- --------
Options outstanding at 4/30/96............................ -- --
======== =========
</TABLE>
4. FEDERAL INCOME TAX MATTERS -- For Federal income tax purposes, the cost and
unrealized appreciation (depreciation) in value of the investment
securities at April 30, 1996 are as follows:
<TABLE>
<CAPTION>
VUSGI VBF VSTBF
------------- ------------ ------------
<S> <C> <C> <C>
Aggregate cost................... $ 106,936,620 $ 59,165,588 $ 36,503,915
============= ============ ============
Gross unrealized appreciation.... $ 714,659 $ 720,433 $ 149,928
Gross unrealized depreciation.... (2,190,279) (970,991) (137,143)
------------- ------------ ------------
Net unrealized appreciation...... $ (1,475,620) $ (250,558) $ 12,785
============= ============ ============
</TABLE>
At October 31, 1995 the VUSGI had a net capital loss carryover of
approximately $6,524,000. Such losses of approximately $2,759,000 and
$3,765,000 will be available to offset capital gains arising through October
31, 2002 and October 31, 2003, respectively.
At October 31, 1995 the VSTBF had a net capital loss carryover of
approximately $398,600. Such losses will be available to offset capital
gains of $397,100 and $1,500 arising through October 31, 2002 and 2003,
respectively. To the extent that any net capital loss carryover is used to
offset future capital gains, it is probable that the gains so offset will
not be distributed to shareholders.
16
<PAGE> 17
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
5. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST -- Transactions in Shares of
Beneficial Interest were as follows:
<TABLE>
<CAPTION>
VUSGI VBF VSTB
-------------------------- ---------------------- ----------------------
11/01/95 Year 11/01/95 Year 11/01/95 Year
through ended through ended through ended
04/30/96 10/31/95 04/30/96 10/31/95 04/30/96 10/31/95
----------- ----------- --------- --------- --------- ---------
Class A Vista Class Vista Class
<S> <C> <C> <C> <C> <C> <C>
Shares sold........................ 989,793 1,726,543 566,469 414,161 720,292 786,229
Shares issued in reinvestment of
distributions.................... 164,389 360,648 191,240 334,782 96,106 173,094
Shares redeemed.................... (1,051,946) (2,780,887) (296,242) (698,335) (721,648) (994,500)
----------- ----------- --------- --------- --------- ---------
Net increase in shares of
beneficial interest
outstanding...................... 102,236 (693,696) 461,467 50,608 94,750 (35,177)
Outstanding shares at:
Beginning of period.............. 8,691,408 9,385,104 5,252,642 5,202,034 3,595,666 3,630,843
----------- ----------- --------- --------- --------- ---------
End of period...................... 8,793,644 8,691,408 5,714,109 5,252,642 3,690,416 3,595,666
=========== =========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
11/01/95 Year
through ended
04/30/96 10/31/95
---------- ----------
Class B
<S> <C> <C>
Shares sold........................ 206,889 636,178
Shares issued in reinvestment of
distributions.................... 18,996 35,054
Shares redeemed.................... (213,085) (223,952)
---------- ----------
Net increase in shares of
beneficial interest
outstanding...................... 12,800 447,280
Outstanding shares at:
Beginning of period.............. 936,734 489,454
---------- ----------
End of period.................... 949,534 936,734
=========== ===========
</TABLE>
6. RETIREMENT PLAN -- During the year ended October 31, 1995, the Trust
adopted an unfunded
noncontributory defined benefit pension plan covering all independent
directors of the Trust who have served as an independent director of the
Trust, or other Vista Funds, for at least five years at the time of
retirement. Benefits under this plan are based on compensation and years of
service. Management has determined that the accrual for prior service costs
is not material.
7. SUBSEQUENT EVENTS -- Effective March 29, 1996, The Chase Manhattan
Corporation merged with Chemical Banking Corporation, pursuant to the
Agreement and Plan of Merger signed in August 1995. In connection with the
merger, the series funds of The Hanover Investment Funds, Inc., an open-end
management investment company previously advised by affiliates of Chemical
Banking Corporation, merged into certain series of the Trust effective May
6, 1996.
17
<PAGE> 18
VISTA MUTUAL FUNDS
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OF BENEFICIAL INTEREST
OUTSTANDING
Throughout each period indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista U.S. Government Income Fund
--------------------------------------------------------------------------------------
Class A Class B
------------------------------------------------------------ ---------------------
11/01/95 Year ended 11/01/95 Year
through ----------------------------------------------- through ended
04/30/96 10/31/95 10/31/94 10/31/93 10/31/92 04/30/96 10/31/95
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period.... $ 11.40 $ 10.60 $ 12.10 $ 11.68 $ 11.53 $ 11.37 $ 10.59
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net Investment Income................ 0.326 0.699 0.646 0.666 0.786 0.284 0.621
Net Gains or (Losses) in Securities
(both realized and unrealized)...... (0.411) 0.798 (1.297) 0.699 0.267 (0.408) 0.797
-------- -------- -------- -------- -------- -------- --------
Total from Investment Operations..... (0.085) 1.497 (0.651) 1.365 1.053 (0.124) 1.418
-------- -------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from Net Investment
Income.............................. 0.325 0.697 0.646 0.667 0.786 0.286 0.638
Distributions from Capital Gains..... -- -- 0.203 0.287 0.111 -- --
-------- -------- -------- -------- -------- -------- --------
Total Distributions.................. 0.325 0.697 0.849 0.954 0.897 0.286 0.638
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period.......... $ 10.99 $ 11.40 $ 10.60 $ 12.10 $ 11.68 $ 10.96 $ 11.37
======== ======== ======== ======== ======== ======== ========
Total Return (1)........................ (0.78%) 14.59% (5.58%) 12.35% 9.40% (1.13%) 13.80%
Ratios/Supplemental Data:
Net Assets, End of Period (000
omitted)............................. $96,662 $99,109 $99,524 $93,039 $59,391 $10,407 $10,652
Ratio of Expenses to Average Net Assets
#.................................... 0.90% 0.87% 0.76% 0.75% 0.38% 1.65% 1.62%
Ratio of Net Investment Income to
Average Net Assets #................. 5.80% 6.37% 5.74% 5.61% 6.52% 5.05% 5.53%
Ratio of expenses without waivers and
assumption of expenses to Average Net
Assets #............................. 1.33% 1.40% 1.28% 1.14% 1.34% 1.83% 1.89%
Ratio of net investment income without
waivers and assumptions of expenses
#.................................... 5.37% 5.84% 5.22% 5.22% 5.56% 4.87% 5.26%
Portfolio Turnover Rate................. 61% 164% 163% 296% 514% 61% 164%
<CAPTION>
11/04/93*
through
10/31/94
--------
<S> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period.... $ 11.98
--------
Income from Investment Operations:
Net Investment Income................ 0.592
Net Gains or (Losses) in Securities
(both realized and unrealized)...... (1.187)
--------
Total from Investment Operations..... (0.595)
--------
Less Distributions:
Dividends from Net Investment
Income.............................. 0.592
Distributions from Capital Gains..... 0.203
--------
Total Distributions.................. 0.795
--------
Net Asset Value, End of Period.......... $ 10.59
========
Total Return (1)........................ (5.18%)
Ratios/Supplemental Data:
Net Assets, End of Period (000
omitted)............................. $ 5,184
Ratio of Expenses to Average Net Assets
#.................................... 1.50%
Ratio of Net Investment Income to
Average Net Assets #................. 5.28%
Ratio of expenses without waivers and
assumption of expenses to Average Net
Assets #............................. 1.78%
Ratio of net investment income without
waivers and assumptions of expenses
#.................................... 5.00%
Portfolio Turnover Rate................. 163%
</TABLE>
- ---------------
(1) Total return figures do not include the effect of any sales load.
* Commencement of operations.
# Short periods have been annualized.
See notes to financial statements.
18
<PAGE> 19
VISTA MUTUAL FUNDS
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OF BENEFICIAL INTEREST
OUTSTANDING
Throughout each period indicated (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Short-Term
Bond Fund
Vista Bond Fund --------------------
--------------------------------------------------------------------
Vista Class
Vista Class --------------------
-------------------------------------------------------------------- Year
11/01/95 Year ended 07/01/92** Year 11/01/95 ended
through -------------------------------- through ended through --------
04/30/96 10/31/95 10/31/94 10/31/93 10/31/92 06/30/92 04/30/96 10/31/95
-------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of
Period............................. $ 10.91 $ 10.08 $ 11.30 $ 10.76 $ 10.70 $ 10.14 $ 10.08 $ 9.91
-------- -------- -------- -------- -------- -------- -------- --------
<CAPTION>
Income from Investment Operations:
Net Investment Income............ 0.333 0.687 0.667 0.622 0.240 0.760 0.278 0.542
Net Gains or (Losses) in
Securities (both realized and
unrealized).................... (0.361) 0.854 (1.140) 0.629 0.110 0.570 (0.040) 0.168
-------- -------- -------- -------- -------- -------- -------- --------
Total from Investment
Operations..................... (0.028) 1.541 (0.473) 1.251 0.350 1.330 0.238 0.710
-------- -------- -------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from Net Investment
Income......................... 0.337 0.687 0.667 0.684 0.240 0.760 0.279 0.542
Distributions from Capital
Gains.......................... 0.055 0.024 0.081 0.026 0.050 0.010 -- --
-------- -------- -------- -------- -------- -------- -------- --------
Total Distributions.............. 0.392 0.711 0.748 0.710 0.290 0.770 0.279 0.542
-------- -------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period...... $ 10.49 $ 10.91 $ 10.08 $ 11.30 $ 10.76 $ 10.70 $ 10.04 $ 10.08
========= ========= ========= ========= ========= ========= ========= =========
Total Return (1).................... (0.32%) 15.83% (4.30%) 12.63% 3.36% 13.67% 2.41% 7.37%
Ratios/Supplemental Data:
Net Assets, End of Period (000
omitted)......................... $59,924 $57,285 $52,439 $61,155 $45,401 $41,321 $37,051 $36,246
Ratio of Expenses to Average Net
Assets #......................... 0.30% 0.31% 0.31% 0.31% 0.30% 0.30% 0.30% 0.32%
Ratio of Net Investment Income to
Average Net Assets #............. 6.20% 6.56% 6.27% 6.15% 6.74% 7.20% 5.56% 5.41%
Ratio of expenses without waivers
and assumption of expenses to
Average Net Assets #............. 0.83% 0.87% 0.92% 0.82% 0.73% 1.03% 0.86% 0.90%
Ratio of net investment income
without waivers and assumptions
of expenses #.................... 5.67% 6.00% 5.66% 5.64% 6.31% 6.47% 5.00% 4.83%
Portfolio Turnover Rate............. 50% 30% 17% 20% 3% 31% 15% 62%
<CAPTION>
Vista Short-Term Bond Fund
---------------------------------------------
Vista Class
---------------------------------------------
07/01/92** Year
Year ended through ended
10/31/94 10/31/93 10/31/92 06/30/92
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of
Period............................. $ 10.14 $ 10.26 $ 10.28 $ 10.13
-------- -------- -------- --------
Income from Investment Operations:
Net Investment Income............ 0.465 0.489 0.190 0.600
Net Gains or (Losses) in
Securities (both realized and
unrealized).................... (0.230) (0.073) (0.010) 0.190
-------- -------- -------- --------
Total from Investment
Operations..................... 0.235 0.416 0.180 0.790
-------- -------- -------- --------
Less Distributions:
Dividends from Net Investment
Income......................... 0.465 0.536 0.200 0.630
Distributions from Capital
Gains.......................... -- -- -- --
-------- -------- -------- --------
Total Distributions.............. 0.465 0.536 0.200 0.630
-------- -------- -------- --------
Net Asset Value, End of Period...... $ 9.91 $ 10.14 $ 10.26 $ 10.28
========= ========= ========= =========
Total Return (1).................... 2.38% 4.73% 1.67% 8.07%
Ratios/Supplemental Data:
Net Assets, End of Period (000
omitted)......................... $35,987 $70,963 $81,327 $70,960
Ratio of Expenses to Average Net
Assets #......................... 0.31% .31% 0.30% 0.30%
Ratio of Net Investment Income to
Average Net Assets #............. 4.59% 5.25% 5.66% 6.12%
Ratio of expenses without waivers
and assumption of expenses to
Average Net Assets #............. 0.86% 0.76% 0.66% 0.94%
Ratio of net investment income
without waivers and assumptions
of expenses #.................... 4.05% 4.80% 5.30% 5.48%
Portfolio Turnover Rate............. 44% 17% 0% 29%
</TABLE>
- ---------------
(1) Total return figures do not include the effect of any sales load.
** In 1992, the Fund's fiscal year-end was changed from June 30 to October 31.
# Short periods have been annualized.
See notes to financial statements.
19
<PAGE> 20
VISTA FAMILY OF MUTUAL FUNDS
SEMI-ANNUAL REPORT FOR THE SIX MONTHS ENDED APRIL 30, 1996
SHAREHOLDER MEETING RESULTS
Vista Bond Fund, Vista Short-Term Bond Fund and Vista U.S. Government
Income Fund (each, a "Fund") are separate series of Mutual Fund Group, a
Massachusetts business trust (the "Trust"). A special meeting of shareholders of
the Trust (the "Meeting") was convened on April 2, 1996, and was adjourned as to
certain matters to April 16, 1996, April 25, 1996 and May 2, 1996.
At the Meeting, the shareholders of the Trust elected all of the Trustees
of the Trust then in office and three additional Trustees. The Trustees elected
were: Fergus Reid, III, Richard E. Ten Haken, William J. Armstrong, John R.H.
Blum, Joseph J. Harkins, H. Richard Vartabedian, Stuart W. Cragin, Jr., Irving
L. Thode, W. Perry Neff, Roland R. Eppley, Jr. and W.D. MacCallan.
Except as indicated, the shareholders of the Funds present at the Meeting,
in person or by proxy, each cast their votes on the following matters as follows
(all fractional shares rounded):
Approval or disapproval of an Interim Advisory Agreement between the Trust
and The Chase Manhattan Bank, N.A. (and the successor entity thereto) with
respect to each Fund:
<TABLE>
<S> <C> <C>
Vista Bond Fund FOR: 5,186,589
AGAINST: 0
ABSTAINED: 6,808
Vista Short-Term Bond Fund FOR: 2,815,721
AGAINST: 0
ABSTAINED: 3,713
Vista U.S. Government Income Fund FOR: 5,439,414
AGAINST: 33,799
ABSTAINED: 103,573
</TABLE>
Approval or disapproval of a new Investment Advisory Agreement between the
Trust and The Chase Manhattan Bank, N.A. (and the successor entity thereto) and
a Sub-Advisory Agreement between The Chase Manhattan Bank, N.A. (and the
successor entity thereto) and Chase Asset Management, Inc. with respect to each
Fund:
<TABLE>
<S> <C> <C>
Vista Bond Fund FOR: 5,186,589
AGAINST: 0
ABSTAINED: 6,808
Vista Short-Term Bond Fund FOR: 2,815,721
AGAINST: 0
ABSTAINED: 3,713
Vista U.S. Government Income Fund FOR: 5,437,543
AGAINST: 37,425
ABSTAINED: 101,818
</TABLE>
20
<PAGE> 21
Election of Trustees (results for shareholders of all series of the Trust
voting together):
<TABLE>
<S> <C> <C>
Fergus Reid, III FOR: 67,023,663
WITHHELD: 1,151,160
Richard E. Ten Haken FOR: 67,042,577
WITHHELD: 1,132,424
William J. Armstrong FOR: 67,009,901
WITHHELD: 1,164,262
John R.H. Blum FOR: 67,015,862
WITHHELD: 1,159,130
Joseph J. Harkins FOR: 67,029,129
WITHHELD: 1,144,902
H. Richard Vartabedian FOR: 67,032,821
WITHHELD: 1,142,179
Stuart W. Cragin, Jr. FOR: 67,032,539
WITHHELD: 1,142,301
Irving L. Thode FOR: 66,997,633
WITHHELD: 1,176,603
W. Perry Neff FOR: 67,010,909
WITHHELD: 1,163,922
Roland R. Eppley, Jr. FOR: 67,003,376
WITHHELD: 1,171,580
W.D. MacCallan FOR: 65,992,011
WITHHELD: 2,182,813
</TABLE>
Ratification of Price Waterhouse LLP as independent public accountants for
each Fund:
<TABLE>
<S> <C> <C>
Vista Bond Fund FOR: 5,193,397
AGAINST: 0
ABSTAINED: 0
Vista Short-Term Bond Fund FOR: 2,819,434
AGAINST: 0
ABSTAINED: 0
Vista U.S. Government Income Fund FOR: 5,439,767
AGAINST: 29,314
ABSTAINED: 107,705
</TABLE>
21
<PAGE> 22
Approval or disapproval of an amendment to the Trust's Declaration of Trust
(results for shareholders of all series of the Trust voting together):
<TABLE>
<S> <C> <C>
FOR: 64,265,095
AGAINST: 1,554,264
ABSTAINED: 2,355,465
</TABLE>
Approval or disapproval of an amendment to each Fund's Class A Rule 12b-1
Distribution Plan:
<TABLE>
<S> <C> <C>
Vista Bond Fund FOR: 5,183,676
AGAINST: 2,913
ABSTAINED: 6,808
Vista Short-Term Bond Fund FOR: 2,815,127
AGAINST: 877
ABSTAINED: 3,431
Vista U.S. Government Income Fund FOR: 5,439,659
AGAINST: 58,991
ABSTAINED: 156,511
</TABLE>
Approval or disapproval of changes to the fundamental investment objectives
of Vista Balanced Fund and Vista Small Cap Equity Fund:
<TABLE>
<S> <C> <C>
Vista Short-Term Bond Fund FOR: 2,787,470
AGAINST: 282
ABSTAINED: 3,431
Vista U.S. Government Income Fund FOR: 4,842,615
AGAINST: 54,065
ABSTAINED: 148,314
</TABLE>
Approval or disapproval of an amendment to each Fund's fundamental
investment restriction concerning borrowing:
<TABLE>
<S> <C> <C>
Vista Bond Fund FOR: 5,164,368
AGAINST: 3,505
ABSTAINED: 6,808
Vista Short-Term Bond Fund FOR: 2,783,361
AGAINST: 0
ABSTAINED: 3,431
Vista U.S. Government Income Fund FOR: 4,803,099
AGAINST: 95,833
ABSTAINED: 146,062
</TABLE>
Approval or disapproval of an amendment to each Fund's fundamental
investment restriction concerning investment for the purpose of exercising
control:
<TABLE>
<S> <C> <C>
Vista Bond Fund FOR: 5,169,718
AGAINST: 2,951
ABSTAINED: 6,808
</TABLE>
22
<PAGE> 23
<TABLE>
<S> <C> <C>
Vista Short-Term Bond Fund FOR: 2,779,444
AGAINST: 0
ABSTAINED: 7,348
Vista U.S. Government Income Fund FOR: 4,795,751
AGAINST: 84,777
ABSTAINED: 164,465
</TABLE>
Approval or disapproval of an amendment to each Fund's fundamental
investment restriction concerning the making of loans:
<TABLE>
<S> <C> <C>
Vista Bond Fund FOR: 5,169,164
AGAINST: 3,505
ABSTAINED: 6,808
Vista Short-Term Bond Fund FOR: 2,783,361
AGAINST: 0
ABSTAINED: 3,431
Vista U.S. Government Income Fund FOR: 4,793,062
AGAINST: 94,213
ABSTAINED: 157,718
</TABLE>
Approval or disapproval of an amendment to each Fund's fundamental
investment restriction concerning purchases of securities on margin:
<TABLE>
<S> <C> <C>
Vista Bond Fund FOR: 5,169,164
AGAINST: 3,505
ABSTAINED: 6,808
Vista Short-Term Bond Fund FOR: 2,783,079
AGAINST: 0
ABSTAINED: 3,713
Vista U.S. Government Income Fund FOR: 4,774,485
AGAINST: 114,567
ABSTAINED: 155,941
</TABLE>
Approval or disapproval of an amendment to each Fund's fundamental
investment restriction concerning concentration of investment:
<TABLE>
<S> <C> <C>
Vista Bond Fund FOR: 5,169,164
AGAINST: 3,505
ABSTAINED: 6,808
Vista Short-Term Bond Fund FOR: 2,783,361
AGAINST: 0
ABSTAINED: 3,431
Vista U.S. Government Income Fund FOR: 4,812,346
AGAINST: 75,610
ABSTAINED: 157,038
</TABLE>
23
<PAGE> 24
Approval or disapproval of an amendment to each Fund's fundamental
investment restriction concerning commodities and real estate:
<TABLE>
<S> <C> <C>
Vista Bond Fund FOR: 5,169,164
AGAINST: 3,505
ABSTAINED: 6,808
Vista Short-Term Bond Fund FOR: 2,783,361
AGAINST: 0
ABSTAINED: 3,431
Vista U.S. Government Income Fund FOR: 4,759,890
AGAINST: 110,483
ABSTAINED: 174,620
</TABLE>
Approval or disapproval of an amendment to each Fund's fundamental
investment restriction regarding investments in restricted and illiquid
securities:
<TABLE>
<S> <C> <C>
Vista Bond Fund FOR: 5,169,515
AGAINST: 3,154
ABSTAINED: 6,808
Vista Short-Term Bond Fund FOR: 2,783,079
AGAINST: 282
ABSTAINED: 3,431
Vista U.S. Government Income Fund FOR: 4,777,844
AGAINST: 106,522
ABSTAINED: 160,627
</TABLE>
Approval or disapproval of the reclassification of each Fund's fundamental
restriction concerning the use of options:
<TABLE>
<S> <C> <C>
Vista Bond Fund FOR: 5,169,515
AGAINST: 3,154
ABSTAINED: 6,808
Vista Short-Term Bond Fund FOR: 2,782,485
AGAINST: 595
ABSTAINED: 3,713
Vista U.S. Government Income Fund FOR: 4,542,026
AGAINST: 59,414
ABSTAINED: 158,768
</TABLE>
24
<PAGE> 25
Approval or disapproval of an amendment to each Fund's fundamental
investment restriction concerning senior securities:
<TABLE>
<S> <C> <C>
Vista Bond Fund FOR: 5,169,515
AGAINST: 3,154
ABSTAINED: 6,808
Vista Short-Term Bond Fund FOR: 2,779,159
AGAINST: 0
ABSTAINED: 3,713
Vista U.S. Government Income Fund FOR: 4,798,872
AGAINST: 69,621
ABSTAINED: 176,500
</TABLE>
Approval or disapproval of an amendment to each Fund's fundamental
investment restriction regarding short sales of securities:
<TABLE>
<S> <C> <C>
Vista Bond Fund FOR: 5,164,368
AGAINST: 3,505
ABSTAINED: 0
Vista Short-Term Bond Fund FOR: 2,779,159
AGAINST: 0
ABSTAINED: 3,713
Vista U.S. Government Income Fund FOR: 4,691,132
AGAINST: 67,079
ABSTAINED: 149,335
</TABLE>
Approval or disapproval of an amendment to the fundamental investment
policy of Vista U.S. Government Income Fund regarding permissible investments in
government securities:
<TABLE>
<S> <C> <C>
FOR: 4,664,293
AGAINST: 94,361
ABSTAINED: 142,020
</TABLE>
Approval of a new fundamental investment policy permitting each Fund to
invest all of its investable assets in another investment company:
<TABLE>
<S> <C> <C>
Vista Bond Fund FOR: 5,165,514
AGAINST: 2,359
ABSTAINED: 0
Vista Short-Term Bond Fund FOR: 2,778,612
AGAINST: 829
ABSTAINED: 3,431
Vista U.S. Government Income Fund FOR: 4,650,048
AGAINST: 106,743
ABSTAINED: 143,882
FOR: 4,664,293
AGAINST: 94,361
ABSTAINED: 142,020
</TABLE>
25
<PAGE> 26
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<PAGE> 27
(This page intentionally left blank.)
<PAGE> 28
(This page intentionally left blank.)
<PAGE> 29
VISTA FAMILY OF MUTUAL FUNDS
Vista offers a wide variety of professionally managed mutual funds that can
help you meet your financial goals. For a brochure and prospectus containing
more complete information on sales charges or expenses, contact your
investment professional or call 1-800-34-VISTA. Please read the prospectus
carefully before you invest or send money:
<TABLE>
<S> <C>
VISTA EQUITY FUNDS VISTA FIXED INCOME FUNDS
Capital Growth Fund Bond Fund
Equity Fund Short-Term Bond Fund
Equity Income Fund U.S. Government Income Fund
Growth and Income Fund U.S. Treasury Income Fund
Growth Fund of Washington(1)
Small Cap Equity Fund VISTA MONEY MARKET FUNDS(2)
California Tax Free Money Market Fund
VISTA BALANCED FUND Federal Money Market Fund
Balanced Fund Global Money Market Fund
New York Tax Free Money Market Fund
VISTA INTERNATIONAL FUNDS Prime Money Market Fund
European Fund Tax Free Money Market Fund
Global Fixed Income Fund Treasury Plus Money Market Fund
International Equity Fund Select Shares of Connecticut Daily Tax Free Income Fund(3)
Japan Fund Select Shares of New Jersey Daily Municipal Income Fund(3)
Southeast Asian Fund 100% U.S. Treasury Securities Money Market Fund
U.S. Government Money Market Fund
VISTA TAX FREE INCOME FUNDS
California Intermediate Tax Free Fund
New York Tax Free Income Fund
Tax Free Income Fund
</TABLE>
Vista Fund Distributors, Inc. is the funds' distributor and is unaffiliated
with Chase. The Chase Manhattan Bank, N.A. is the funds' portfolio adviser
and provides other services to the funds.
(1) Washington Investment Advisors, Inc. is the fund's investment adviser.
(2) An investment in these funds is neither insured nor guaranteed by the U.S.
government, and there can be no assurance that these funds will be able to
maintain a stable Net Asset Value of $1.00 per share.
(3) Vista Select Shares of Connecticut Daily Tax Free Income Fund, Inc., and
Vista Select Shares of New Jersey Daily Municipal Income Fund, Inc., are
not part of, or affiliated with, the Vista Family of Mutual Funds. Reich
& Tang Distributors L.P. and New England Investment Companies L.P., which
are unaffiliated with Chase, are the funds' distributor and investment
adviser, respectively. National bank subsidiaries of The Chase Manhattan
Corporation do, however, perform shareholder servicing agent services for
the funds, although they perform no other services for the funds, such as
serving as investment adviser, custodian or administrator.
INVESTMENTS IN MUTUAL FUNDS ARE SUBJECT TO RISK, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL. IN ADDITION, THEY ARE NOT DEPOSITS, OBLIGATIONS OF, ENDORSED OR
GUARANTEED BY CHASE AND ARE NOT INSURED BY THE FDIC, THE FEDERAL RESERVE BOARD
OR ANY OTHER GOVERNMENT AGENCY.
<PAGE> 30
VISTA
FAMILY OF MUTUAL FUNDS
MANAGED BY CHASE MANHATTAN
- --------------------------------------------------------------------------------
SEMI-ANNUAL
------------------
REPORT
VISTA SERVICE CENTER
P.O. BOX 419392 VISTA U.S.
KANSAS CITY, MO 64179 GOVERNMENT
INCOME
INVESTMENT ADVISER, FUND
ADMINISTRATOR,
SHAREHOLDER SERVICING AGENT
AND CUSTODIAN
The Chase Manhattan Bank, N.A. VISTA
BOND
DISTRIBUTOR FUND
Vista Fund Distributors, Inc.
TRANSFER AGENT
DST Systems, Inc. VISTA
SHORT-TERM
LEGAL COUNSEL BOND
Simpson, Thacher & Bartlett FUND
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
Vista Fund Distributors, Inc. is
the funds' distributor and is
unaffiliated with Chase. The
Chase Manhattan Bank, N.A. is
the funds' adviser.
The financial information in
this report has been taken from
the books and records of the
Funds without examination by
independent accountants who
express no opinion thereto.
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 Vista funds, call
1-800-34-VISTA. The prospectus
contains more complete
information, including charges
and expenses. Please read it
carefully before you invest
or send money.
For more information about these
funds or your account, simply
call your investment
professional or the Vista
Service Center at
1-800-34-VISTA. FOR THE 6 MONTHS ENDED
APRIL 30, 1996
VBND-3-696 (UNAUDITED)
- --------------------------------------------------------------------------------
