MUTUAL FUND GROUP, N-30D, 1996-06-25

MUTUAL FUND GROUP
N-30D, 1996-06-25

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<PAGE> 1
- --------------------------------------------------------------------------------
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 IEEE Balanced
Fund for the six months ended April 30, 1996.

During this reporting period, stock prices continued to climb with the
Standard & Poor's stock index recording a total return of 13.2%. Bond prices,
however, declined as interest rates rose sharply from February through April.
The Lehman Aggregate Bond Index -- a broad measure of corporate, government and
mortgage-related bond issues with maturities ranging from one to 30 years --
posted a 0.5% total return for the six-month period ended April 30, 1996. This
positive total return occurred as the increase in interest rates earned on
bonds modestly offset the decline in bond prices.

As you will see in the accompanying Fund Commentary report, the IEEE
Balanced Fund achieved a total return of 7.41% for the six-month period under
review. The Fund's performance was attributable to healthy price gains in the
equity portion of the Fund, as bond prices weakened in the early months of
1996.

As of June 7, the IEEE Balanced Fund merged with Vista Balanced Fund,
and you received shares of the Vista Balanced Fund equal to the value of your
IEEE Balanced Fund shares on that date. As a Vista Balanced Fund shareholder,
you will enjoy the investment management experience of The Chase Manhattan Bank
- -- an organization that has been managing money successfully in the United
States and around the world for over a century. What's more, Vista's
value-oriented investment style is intended to help reduce downside risk that
may be present in certain other balanced funds.

We are delighted to have you as a new Vista Balanced Fund shareholder.
We appreciate your support and look forward to helping you realize your
investment goals in the future. If you have any questions, please call your
investment professional or 1-800-34-VISTA.

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>
<S> <C>
CONTENTS
CHAIRMAN'S LETTER 1
FUND COMMENTARY 2
PORTFOLIO OF INVESTMENTS 3-5
FINANCIAL STATEMENTS 6-8
NOTES TO FINANCIAL
STATEMENTS 9-13
PER SHARE DATA 14
</TABLE>

1
<PAGE> 2
- --------------------------------------------------------------------------------
FUND COMMENTARY

IEEE BALANCED FUND

We are pleased to report that for the six-month period ending April 30,
1996, the Fund achieved a total return of 7.41%. The following is an overview
of the stock and bond markets for these six months and of the Fund's positions
in both asset classes.

What caused stock and bond markets to part company over the six months
ended April 30, 1996. The answer is a surprising resurgence in economic growth
early in 1996. Over the course of 1995, the economy slowed markedly as
businesses cut production to trim burdensome inventory levels. In this sluggish
growth, low inflation environment, interest rates fell, bolstering both stock
and bond prices.

As 1996 unfolded, the economy -- led by unexpected strength in housing,
auto and retail store sales -- began to perk up. In addition, sharp increases
in oil and grain prices occurred. A stronger economy coupled with gains in key
commodity prices caused an "inflation scare" among investors. This, in turn,
caused bond prices to retreat and the shares of more economically-sensitive
stocks to post sharp advances. For the six months ended April 30, 1996, strong
performance was recorded among the auto, retail, energy, chemical and metal
industries.

On April 30, 1996, the Fund was invested 56% in common stocks, 33% in
bonds, and 11% in money market instruments.*

* The Fund's composition is subject to change.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN*

SINCE INCEPTION
1 YEAR (9/7/93)
----------- ----------------------
<S> <C>
9.67% 3.01%
</TABLE>
* Assumes dividend reinvestment and
reflects fee waivers. Without such
waivers, performance would have
been reduced.
---------------------------------------

- --------------------------------------------------------------------------------
GROWTH OF $10,000
[GRAPH]

PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT
RETURN AND PRINCIPAL 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 IEEE BALANCED FUND AND THE LIPPER BALANCED FUND INDEX FROM SEPTEMBER 30,
1993 TO APRIL 30, 1996. 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 BALANCED FUND INDEX, AN EQUALLY-WEIGHTED PERFORMANCE INDICATOR,
TRACKS THE TOTAL RETURNS OF THE 30 LARGEST BALANCED FUNDS IN THE INDUSTRY.
FUNDS INCLUDED IN THE LIPPER BALANCED FUND INDEX ARE CONSIDERED REPRESENTATIVE
OF THE MARKET.

2
<PAGE> 3

IEEE BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- -------------------------------------- ----------- ------------
<S> <C> <C>
LONG-TERM INVESTMENTS -- 87.7%
COMMON STOCK -- 55.0%
Aerospace -- 1.4%
Boeing Co. ........................... 1,800 $ 147,825
OEA, Inc. ............................ 400 15,700
---------
163,525
---------
Airlines -- 0.1%
Air Express International Corp. ...... 600 16,800
---------
Appliances & Household
Durables -- 0.1%
La-Z-Boy Chair Co. ................... 400 11,850
---------
Banking -- 0.8%
Citizens Banking Corp. ............... 400 11,600
Deposit Guaranty Corp. ............... 300 14,400
First Commercial Corp. ............... 428 13,482
First Financial Corp. of Wisconsin.... 700 16,450
Firstbank of Illinois Co. ............ 400 12,500
FirstMerit Corp. ..................... 400 12,100
Mark Twain Bancshares, Inc. .......... 300 11,325
U.S. Trust Corp. ..................... 200 10,950
---------
102,807
---------
Business Products -- 2.9%
Pitney-Bowes, Inc. ................... 3,400 165,750
Equifax, Inc. ........................ 7,800 191,100
---------
356,850
---------
Business Services -- 0.4%
G & K Services, Inc., Class A......... 500 13,312
PHH Corp. ............................ 300 17,063
Unifirst Corp. ....................... 800 19,200
---------
49,575
---------
Chemicals -- 1.5%
Ferro Corp. .......................... 500 13,875
Fuller (H.B.) Co. .................... 300 9,825
Lilly Industries, Inc., Class A....... 900 13,050
MacDermid, Inc. ...................... 200 13,800
Nalco Chemical Co. ................... 3,600 109,800
Schulman (A.), Inc. .................. 500 10,875
Wellman Inc. ......................... 500 12,000
---------
183,225
---------
Computer Software -- 3.2%
Acxiom Corp. ......................... 500 13,750
Computer Associates International..... 1,500 110,062
Microsoft Corp.*...................... 2,300 260,762
---------
384,574
---------
Computers/Computer Hardware -- 2.7%
Fair Issac & Company, Inc............. 500 21,250
Hewlett-Packard Co. .................. 2,600 275,275
National Computer Systems, Inc. ...... 700 15,225
SCI Systems, Inc.*.................... 500 21,438
---------
333,188
---------

<CAPTION>
Issuer Shares Value
- -------------------------------------- ----------- ------------
<S> <C> <C>
Consumer Products -- 2.0%
Colgate-Palmolive Co. ................ 1,200 $ 91,950
Gillette Co. ......................... 2,500 135,000
Interface, Inc. Class A*.............. 900 11,700
---------
238,650
---------
Diversified -- 1.5%
Dover Corp. .......................... 3,400 175,100
Lawson Products, Inc. ................ 400 9,100
---------
184,200
---------
Electronics/Electrical
Equipment -- 4.7%
AMP, Inc. ............................ 2,400 107,400
Cohu, Inc. ........................... 500 12,750
Dionex Corp.*......................... 400 14,650
General Electric Co. ................. 3,300 255,750
Logicon, Inc. ........................ 500 14,875
Motorola, Inc. ....................... 1,300 79,625
MTS Systems Corp. .................... 800 16,800
Park Electrochemical Corp. ........... 400 10,000
Pioneer Standard Electronics, Inc. ... 1,050 17,062
Teleflex, Inc. ....................... 300 13,913
Wyle Electronics...................... 400 16,750
X-Rite, Inc. ......................... 800 14,000
---------
573,575
---------
Engineering Services -- 1.7%
Foster Wheeler Corp................... 4,400 203,500
---------
Entertainment/Leisure -- 1.0%
Carnival Corp., Class A............... 4,000 116,000
---------
Environmental Services -- 1.3%
WMX Technologies, Inc................. 4,700 163,325
---------
Financial Services -- 0.3%
Eaton Vance Corp. .................... 500 15,250
Quick & Reilly Group, Inc. ........... 550 16,775
---------
32,025
---------
Food/Beverage Products -- 2.6%
Coca-Cola Co. ........................ 2,500 203,750
CPC International, Inc. .............. 1,300 89,862
Flowers Industries, Inc. ............. 1,000 13,375
International Multifoods Corp. ....... 600 11,325
---------
318,312
---------
Health Care -- 3.6%
Biomet, Inc.*......................... 6,700 98,825
Diagnostic Products Corp. ............ 300 12,562
Humana, Inc. ......................... 4,900 120,662
Life Technologies, Inc. .............. 600 17,100
Owens & Minor, Inc. .................. 1,000 13,500
Rotech Medical Corp.*................. 400 16,600
U.S. HealthCare, Inc. ................ 2,900 151,162
---------
430,411
---------
</TABLE>

See notes to financial statements.

3
<PAGE> 4

IEEE BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- -------------------------------------- ----------- ------------
<S> <C> <C>
Insurance -- 4.1%
American Bankers Insurance Group,
Inc.................................. 350 $ 13,825
American International Group.......... 1,950 178,181
Frontier Insurance Group, Inc. ....... 500 16,125
Gainsco, Inc. ........................ 1,323 15,380
General Re Corp. ..................... 1,000 142,875
Liberty Corp. ........................ 400 12,700
NAC Re Corp. ......................... 400 13,100
Orion Capital Corp. .................. 300 13,313
Progressive Corp. .................... 2,000 93,250
---------
498,749
---------
Machinery & Engineering
Equipment -- 0.1%
Precision Castparts Corp.............. 400 17,350
---------
Manufacturing -- 2.7%
Carlisle Companies, Inc. ............. 300 13,950
CLARCOR, Inc. ........................ 500 9,875
Commercial Intertech Corp. ........... 700 13,300
Furon Co. ............................ 700 15,225
Graco, Inc. .......................... 750 15,094
Millipore Corp. ...................... 3,200 134,000
Tennant Co. .......................... 600 14,700
Tyco International Ltd. .............. 2,800 108,150
---------
324,294
---------
Media/Advertising -- 1.3%
Interpublic Group of Companies,
Inc.................................. 3,400 158,950
---------
Oil & Gas -- 0.1%
Production Operators Corp. ........... 400 13,300
---------
Pharmaceuticals -- 8.3%
Abbot Laboratories,................... 4,000 162,500
Johnson & Johnson..................... 1,600 148,000
Medtronic, Inc. ...................... 3,600 191,250
Merck & Company, Inc. ................ 3,200 193,600
Mylan Laboratories.................... 8,000 156,000
Schering-Plough Corp. ................ 2,800 160,650
---------
1,012,000
---------
Printing & Publishing -- 1.3%
Bowne & Co., Inc. .................... 600 10,800
Houghton Mifflin Co. ................. 300 13,913
Readers Digest Association, Inc.,
Class A,............................. 3,100 127,100
---------
151,813
---------
Retailing -- 2.8%
Albertson's, Inc. .................... 3,100 119,350
Arbor Drugs, Inc. .................... 550 11,137
Burlington Coat Factory Warehouse *... 1,200 13,050
Casey's General Stores, Inc. ......... 600 12,937
Claire's Stores, Inc. ................ 900 19,575
Family Dollar Stores, Inc. ........... 1,000 15,250
Phillips-Van Heusen................... 1,300 17,225
Sbarro, Inc. ......................... 500 13,125
Wal-Mart Stores, Inc. ................ 5,040 120,330
---------
341,979
---------

<CAPTION>
Issuer Shares Value
- -------------------------------------- ----------- ------------
<S> <C> <C>
Shipping/Transportation -- 0.1%
Rollins Truck Leasing Corp............ 1,100 $ 11,962
---------
Steel -- 0.2%
Commercial Metals Co.................. 400 12,000
Lukens Inc. .......................... 500 13,187
---------
25,187
---------
Telecommunications Equipment -- 1.0%
Scientific-Atlanta, Inc............... 6,800 125,800
---------
Textile/Textile Mill Products -- 0.1%
Guilford Mills, Inc................... 600 14,550
---------
Tire & Rubber -- 0.5%
Bandag, Inc. ......................... 1,100 55,138
---------
Utilities -- 0.6%
Bay State Gas Co. .................... 500 13,875
Eastern Enterprises................... 400 14,350
Northwest Natural Gas Comp. .......... 400 13,000
Piedmont Natural Gas Company, Inc. ... 500 10,813
Southwestern Energy Co. .............. 800 11,100
United Water Resources, Inc. ......... 800 10,000
---------
73,138
---------
TOTAL COMMON STOCK
(Cost $4,892,404)................... 6,686,602
---------
PREFERRED STOCK -- 1.0%
Banking -- 1.0%
National Westminster Bank, 7.875%
(Cost $110,938)...................... 5,000 122,500
---------
<CAPTION>
Principal
Amount
-----------
<S> <C> <C>
CORPORATE BONDS & NOTES -- 8.0%
Consumer Products -- 1.6%
Colgate Palmolive Co.
6.020%, due 08/15/03................. $ 200,000 $ 188,560
---------
Electronics/Electrical
Equipment -- 2.0%
Motorola, Inc.
7.600%, due 01/01/07................. 250,000 257,288
---------
Entertainment/Leisure -- 1.8%
Walt Disney, Inc.
8.000%, due 10/27/06................. 200,000 212,818
---------
Financial Services -- 1.0%
Norwest Financial, Inc.
6.875%, due 12/15/99................. 120,000 120,582
---------
Retailing -- 0.8%
Wal-Mart Stores, Inc.
7.500%, due 05/15/04.................. 100,000 102,403
---------
</TABLE>

See notes to financial statements.

4
<PAGE> 5

<CAPTION>
Principal
Issuer Amount Value
- -------------------------------------- ----------- ------------
<S> <C> <C>
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $2,508,394).................... $ 2,428,420
---------
TOTAL LONG-TERM INVESTMENTS
(Cost $8,937,708).................... 10,665,638
---------
SHORT-TERM INVESTMENTS -- 11.3%
U.S. GOVERNMENT AGENCY SPONSORED
OBLIGATIONS -- 11.3%
Federal Home Loan Mortgage Corp.,
Discount Note
5.180%, due 05/09/96
(Cost $1,368,423).................... $ 1,370,000 1,368,423
---------
TOTAL INVESTMENTS --
(COST $10,306,131).................. 99.0% $ 12,034,061
==========
</TABLE>

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

* Non income producing.
CMO = Collateralized Mortgage Obligation.

See notes to financial statements.

5
<PAGE> 6

IEEE BALANCED FUND
STATEMENT OF ASSETS AND LIABILITIES April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investment securities, at value (Note 1)............... $ 12,034,061
Cash................................................... 18,342
Receivables:
Interest and dividends.............................. 73,841
Trust shares sold................................... 5,450
Expense reimbursement from Distributor.............. 54,258
------------
Total assets...................................... 12,185,952
------------
LIABILITIES:
Payable for Trust shares redeemed...................... 10,000
Dividends payable...................................... 7
Accrued liabilities: (Note 2)
Administration fees................................. 987
Distribution fees................................... 2,468
Investment advisory fees............................ 5,925
Shareholder servicing fees.......................... 2,468
Sub-administration fees............................. 493
Custodian........................................... 9,500
Other............................................... 2,984
------------
Total Liabilities................................. 34,832
------------
NET ASSETS:
Paid in capital........................................ 10,431,269
Accumulated undistributed net investment income........ 10,743
Accumulated undistributed net realized gain (loss) on
investment transactions............................. (18,822)
Net unrealized appreciation/depreciation of
investments......................................... 1,727,930
------------
Net Assets............................................. $ 12,151,120
============
Shares of beneficial interest outstanding (no par
value; unlimited number of shares authorized)....... 1,040,864
Net asset value and redemption price per share (net
assets/shares outstanding):......................... $11.67
============
Cost of Investments.................................... $ 10,306,131
============
</TABLE>

See notes to financial statements.

6
<PAGE> 7

IEEE BALANCED FUND
STATEMENT OF OPERATIONS
For the six months ended April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividend.................................................... $ 58,223
Interest.................................................... 142,555
---------
Total investment income.................................. 200,778
---------
EXPENSES: (Note 2)
Shareholder servicing fees.................................. 14,472
Distribution fees........................................... 14,472
Investment Advisory fees.................................... 37,182
Administration fees......................................... 5,789
Sub-administration fees..................................... 2,894
Custodian fees.............................................. 14,472
Printing and postage........................................ 5,970
Professional fees........................................... 14,659
Registration costs.......................................... 13,319
Transfer agent fees......................................... 21,957
Trustees fees............................................... 368
Other....................................................... 1,000
---------
Total expenses........................................... 146,554
---------
Less amounts waived (Note 2E)............................... 2,894
Less expenses borne by the Distributor...................... 71,301
---------
Net expenses............................................. 72,359
---------
Net investment income.................................. 128,419
---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments.............................................. 270,813
Futures and written option transactions.................. 5,323
Change in net unrealized appreciation/depreciation on:
Investments.............................................. 414,741
Futures and written option transactions.................. (5,096)
---------
Net realized and unrealized gain (loss) on investments...... 685,781
---------
Net increase in net assets from operations............. $ 814,200
=========
</TABLE>

See notes to financial statements.

7
<PAGE> 8

IEEE BALANCED FUND
STATEMENTS OF CHANGES IN NET ASSETS For the periods indicated (unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
11/01/95 Year
through ended
04/30/96 10/31/95
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS:
Net investment income..................... $ 128,419 $ 227,953
Net realized gain (loss) on investments,
options and futures transactions....... 276,136 (88,623)
Change in net unrealized
appreciation/depreciation on
investments and futures................ 409,645 1,615,722
------------ ------------
Increase in net assets from
operations........................... 814,200 1,755,052
------------ ------------
NET EQUALIZATION CREDITS (Note 1E):......... -- 275
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net Investment income..................... (123,253) (232,953)
------------ ------------
Total dividends and
distributions................... (123,253) (232,953)
------------ ------------
TRANSACTIONS IN SHARES OF BENEFICIAL
INTEREST:
Proceeds from shares sold:................ 869,998 1,046,406
Reinvestment of dividends and
distributions:......................... 120,164 226,991
Payment for shares redeemed:.............. (301,877) (800,821)
------------ ------------
Net increase in net assets from
shares of beneficial interest..... 688,285 472,576
------------ ------------
Total increase in net assets...... 1,379,232 1,994,950
NET ASSETS:
Beginning of period....................... 10,771,888 8,776,938
------------ ------------
End of period............................. $ 12,151,120 $ 10,771,888
============ ============
</TABLE>

See notes to financial statements.

8
<PAGE> 9

NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------

1. SIGNIFICANT ACCOUNTING POLICIES -- Mutual Fund Group (the "Trust") is
organized 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. IEEE Balanced Fund ("the Fund"), is a separate
portfolio of the Trust. The Fund was established on September 8, 1993 for the
purpose of providing IEEE members with a no-load balanced fund investment.

The merger of the IEEE Balanced Fund into the Vista Balanced Fund was approved
at the October 13, 1995 Trustees' meeting, and approved by the shareholders of
the respective fund. The merger was completed June 10, 1996.

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 Fund:

A. Valuation of investments -- Equity securities listed on a securities
exchange or reported through the NASDAQ National Market system are valued
at the last reported sale price on the principal exchange on the date of
valuation. Securities for which sale prices are not available are valued at
last quoted bid price. Bonds and other fixed income securities (other than
short-term obligations), including listed issues, are valued using matrix
pricing systems of a major dealer in bonds which take into account factors
such as institutional-size trading in similar groups of securities, yield,
quality, coupon rate, maturity, type of issue, trading characteristics and
other market data, without exclusive reliance upon quoted exchange or
over-the-counter prices. 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.

B. Repurchase agreements -- It is the Fund'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,
sub-custodian, or a bank with which the custodian bank has entered into a
sub-custodian 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. 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. Futures contracts -- When the 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.

9
<PAGE> 10

NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------

Changes in the value of the contract are recorded as unrealized
appreciation/depreciation until the contract is closed or settled.

Use of futures contracts subject the Fund to risk of loss in excess of
amounts shown on the Statement of Assets and Liabilities, up to the amount
of the value of the contract. The Fund held no such contracts outstanding
at April 30, 1996 as listed on the Statement of Portfolio of Investments.

The Fund 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.

E. Written options -- When the 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 Fund writes options on futures on stock index and U.S. Treasury
securities 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 had no such written options outstanding
at April 30, 1996.

F. Federal income taxes -- The Fund is treated as a separate taxable
entity for Federal income tax purposes. The 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 the Fund's
distributable net investment income, and net realized gain on investments.
In addition, the Fund intends to make distributions as required to avoid
excise taxes. Accordingly, no provision for Federal income or excise tax is
necessary.

G. Equalization -- In prior years, the Fund followed the accounting
practice known as equalization by which a portion of the proceeds from
sales and costs of redemptions of Fund shares equivalent, on a per-share
basis, to the amount of undistributed net investment income on the date of
the transactions, is credited or charged to undistributed net investment
income. In the current period ending April 30, 1996, IEEEF discontinued the
practice of equalization, resulting in reclassifications from undistributed
net investment income of $1,038 to accumulated paid-in capital.

H. Distributions to shareholders -- Dividends are paid to shareholders
quarterly. Dividends and distributions 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 principals. 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. The reclassifications made for the Fund are as follows: paid-in
capital was increased and accumulated undistributed net investment income

10
<PAGE> 11

NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------

was decreased by $275. 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. The adjustment for
the Fund relates primarily to the character for tax purposes of
equalization.

I. Expenses -- Expenses directly attributable to a Fund are charged to
that Fund; other expenses are allocated proportionately among each Fund
within the Trust in relation to the net assets of each Fund or on another
reasonable basis.

2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES

A. Investment advisory fee -- The Chase Manhattan Bank, N.A. (the
"Adviser") acts as investment adviser to the Fund pursuant to an Investment
Advisory Agreement. The Adviser is a wholly-owned subsidiary of The Chase
Manhattan Corporation. The Adviser has retained the "Sub-Adviser" to
provide portfolio advisory services. The Sub-Adviser is Atlanta Capital
Management Company ("Atlanta Capital" or the "Sub-Adviser"), an investment
advisory firm. For its services under the Investment Advisory Agreement,
the Adviser receives an annual fee computed daily and paid monthly at an
annual rate equal to .65% of the Fund's average daily net assets. The
Adviser may, from time to time, waive all or a portion of its fees. For the
period ended April 30, 1996, the Adviser waived fees of $2,894.

The Adviser has retained the Sub-Adviser to provide portfolio management
services pursuant to a Sub-Adviser Agreement ("Agreement"). Pursuant
further to this Agreement the Adviser has agreed to pay the Sub-Adviser a
monthly fee at the annual rate of .65% of the average daily net assets of
the Fund less any amount of the advisory fee waived by the Adviser.

B. Shareholder servicing fees -- The Trust has adopted an Administrative
Services Plan which, among other things, provides that the Trust on behalf
of the Fund may obtain the services of one or more Shareholder Servicing
Agents. For its services, each Shareholder Servicing Agent will receive
fees determined by a formula based upon the average number of accounts
serviced and the number of transactions processed by such Shareholder
Servicing Agent during the period for which payment is being made, and any
out-of-pocket expenses incurred, provided that such fees will not exceed,
on an annualized basis, 0.25% of the average daily net assets of the Fund.

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
the 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 the Fund.

The Trustees have approved a plan of distribution for the Fund, the "Vista
Plan". Pursuant to the Vista Plan, the Fund may pay the Distributor a
distribution fee not to exceed the annual rate of 0.25% of the Fund's
average daily net assets for its services in connection with the
distribution of Fund shares.

11
<PAGE> 12

NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------

For the period ended April 30, 1996, the Distributor reimbursed the Fund
for expenses incurred amounting to $71,301.

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
the Fund a fee computed at the annual rate equal to 0.10% of the Fund's
average daily net assets.

E. Other -- Certain officers of the Trust are officers of BISYS.

Chase provides portfolio accounting and custody services for the Fund. Such
amounts are presented in the Statement of Operations as custodian fees.

On August 27, 1995, the Chase Manhattan Corporation and Chemical Banking
Corporation announced an agreement in principle to merge, which was
approved by shareholders of both corporations and completed on March 31,
1996.

3. INVESTMENT TRANSACTIONS -- For the period ended April 30, 1996, purchases
and sales of investments (excluding short-term investments) were as
follows:

<TABLE>
<S> <C>
Purchases (excluding U.S. Government)..................................... $ 874,440
Sales (excluding U.S. Government)......................................... 1,560,717
Purchases of U.S. Government.............................................. 911,179
Sales of U.S. Government.................................................. 115,490
</TABLE>

Written option transactions on securities and stock indices during the
period are summarized as follows:

<TABLE>
<CAPTION>
Calls
---------------------
Number of Premiums
Contracts Received
--------- --------
<S> <C> <C>
Options outstanding at 10/31/95.................................... 2 $2,596
Options written.................................................... -- --
Options closed..................................................... 2 2,596
--
------
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>
<S> <C>
Aggregate cost......................................................... $10,306,131
============
Gross unrealized appreciation.......................................... $ 1,912,317
Gross unrealized depreciation.......................................... (184,387)
-----------
Net unrealized appreciation............................................ $ 1,727,930
============
</TABLE>

At October 31, 1995 the Fund had a net capital loss carryover of
approximately $289,000. Such losses of approximately $202,000 and $87,000
will be available to offset capital gains arising

12
<PAGE> 13

NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------

through October 31, 2002 and October 31, 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.

5. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST -- Transactions in Shares of
beneficial interest were as follows for the periods indicated:

<TABLE>
<CAPTION>
11/1/95 Year
through ended
4/30/96 10/31/95
--------- --------
<S> <C> <C>
Shares sold................................................... 75,615 103,775
Shares issued in reinvestment of distributions................ 10,472 22,456
Shares redeemed............................................... (26,220) (80,594)
--------- --------
Net increase in shares of beneficial interest outstanding..... 59,867 45,637
Outstanding shares at:
Beginning of period......................................... 980,997 935,360
--------- --------
End of period............................................... 1,040,864 980,997
========= ========
</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.

13
<PAGE> 14

IEEE BALANCED FUND
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OF BENEFICIAL INTEREST
OUTSTANDING
Throughout each period indicated (unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
11/1/95 Year ended 9/15/93*
through --------------------- through
4/30/96 10/31/95 10/31/94 10/31/93
-------- -------- -------- --------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period...... $ 10.98 $ 9.38 $ 10.05 $ 10.00
-------- -------- -------- --------
Income from Investment operations:
Net investment income.................. 0.125 0.240 0.237 0.050
Net gains (losses) in securities (both
realized and unrealized)............. 0.686 1.610 (0.614) 0.014
-------- -------- -------- --------
Total from Investment operations....... 0.811 1.850 (0.377) 0.064
-------- -------- -------- --------
Less: Dividends from net investment
income................................. 0.121 0.246 0.240 0.014
Distributions in excess of net realized
capital losses......................... -- -- 0.053 --
-------- -------- -------- --------
Total Distributions....................... 0.121 0.246 0.293 0.014
-------- -------- -------- --------
Net Asset Value, End of Period............ $ 11.67 $ 10.98 $ 9.38 $ 10.05
======== ======== ======== ========
TOTAL RETURN.............................. 7.41% 19.93% (3.78%) 0.64%
======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000 omitted)... $12,151 $10,772 $8,777 $6,091
Ratio of expenses to average net
assets**............................... 1.25% 1.25% 1.12% 0.00%
Ratio of net investment income to average
net assets**........................... 2.22% 2.38% 2.48% 3.08%
Ratio of expenses without waivers and
assumption of expenses to average net
assets**............................... 2.61% 2.36% 3.15% 3.36%
Ratio of net investment income without
waivers and assumption of expenses to
average net assets**................... .86% 1.27% 0.45% (0.28%)
Portfolio turnover rate................... 1% 30% 28% 0%
</TABLE>

- ---------------
* Commencement of operations.
** Short periods have been annualized.

See notes to financial statements.

14
<PAGE> 15

VISTA FAMILY OF MUTUAL FUNDS

SEMI-ANNUAL REPORT FOR THE SIX MONTHS ENDED APRIL 30, 1996

SHAREHOLDER MEETING RESULTS

IEEE Balanced Fund (the "Fund") is a 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 Fund 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 a Plan of Reorganization and the transactions
contemplated thereby providing for (a) the transfer of all of the assets of the
Fund to the Vista Balanced Fund (the "Balanced Fund"), another series of the
Trust, in exchange for the assumption for the liabiliites of the Fund by the
Balanced Fund and the delivery to the Fund of Class A shares of the Balanced
Fund; (b) the pro rata distribution of the Class A shares of the Balanced Fund
so received to the shareholders for the Fund in liquidation of their interests
in the Fund and (c) termination of the Fund:

<TABLE>
<S> <C> <C>
FOR: 774,283
AGAINST: 6,655
ABSTAINED: 11,906
</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 the
Fund:

<TABLE>
<S> <C> <C>
FOR: 774.547
AGAINST: 6,219
ABSTAINED: 12,078
</TABLE>

15
<PAGE> 16

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
the Fund:

<TABLE>
<S> <C> <C>
FOR: 779,423
AGAINST: 2,966
ABSTAINED: 10,455
</TABLE>

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>

16
<PAGE> 17
VISTA
FAMILY OF MUTUAL FUNDS
MANAGED BY CHASE MANHATTAN

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 Select Shares of Connecticut Daily Tax Free Income
Global Fixed Income Fund Fund(3)
International Equity Fund Select Shares of New Jersey Daily Municipal Income
Japan Fund Fund(3)
Southeast Asian Fund Tax Free Money Market Fund
Treasury Plus Money Market Fund
VISTA TAX FREE INCOME FUNDS U.S. Government Money Market Fund
California Intermediate Tax 100% U.S. Treasury Securities Money Market Fund
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> 18

- --------------------------------------------------------------------------------
SEMI-ANNUAL
-------------------------------------
REPORT
VISTA SERVICE CENTER
P.O. BOX 419392
KANSAS CITY, MO 64179
INVESTMENT ADVISER,
ADMINISTRATOR,
SHAREHOLDER SERVICING AGENT
AND CUSTODIAN
The Chase Manhattan Bank, N.A.

DISTRIBUTOR
Vista Fund Distributors, Inc.

SUB-ADVISERS
Atlanta Capital Management
Company (with the Institute of
Electrical and Electronic
Engineers, Inc.)

TRANSFER AGENT
DST Systems, Inc.

LEGAL COUNSEL
Simpson, Thacher & Bartlett

INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP

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.

Vista Fund Distributors, Inc. is
the Fund's distributor and is
unaffiliated with Chase. The
Chase Manhattan Bank, N.A. is the
Fund's adviser.

This report is submitted for the
general information of the
shareholders of the fund. It is
not authorized for distribution
to prospective investors in the
fund 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.

IEBAL-3-696

<TABLE>
<S> <C> <C>
- --------------------------------------------------------------------------------
IEEE
BALANCED
FUND
FOR THE 6 MONTHS ENDED
APRIL 30, 1996
(UNAUDITED)
</TABLE>