<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 Vista
International Equity Fund, Vista European Fund, Vista Japan Fund, Vista
Southeast Asian Fund and Vista Global Fixed Income Fund for the six months
ended April 30, 1996.
LOW INTEREST RATES BENEFITED INTERNATIONAL FUNDS
Low interest rates bolstered world financial markets for most of the
six-month period. The following is an overview:
EUROPE: Corporate focus on investment spending, mergers and other
activities helped push stocks higher. We believe growth should be slow (around
2%), but steady and non-inflationary. JAPAN: Stocks rebounded along with the
economy, and the effects of the Japanese banking crisis seemed to be fading.
Strong business production levels and increased institutional stock buying were
among the main catalysts behind the rise in Japanese stock prices. SOUTHEAST
ASIA: Stocks surged ahead partly on the strength of low U.S. interest rates.
Higher U.S. rates in March slowed the region's stock growth, but solid
corporate profits and improving economies should carry prices higher.
LATIN AMERICA: Stocks were on the upswing, sparked by the improving
economies of Mexico and Argentina. Improving trade balances, privatization of
industry and other government reforms may help keep investment capital flowing
into these developing nations.
GLOBAL BONDS: Prices surged early in the year, then slid when U.S. rates
increased in March.
Given these scenarios, we hold an optimistic outlook for the world's
markets -- but we continue to invest with caution. We believe that close
scrutiny of a company's financial health and selective buying and selling
provide the best opportunity for superior returns -- especially for those with
a long-term investment horizon.
If you have any questions, please call us at 1-800-34-VISTA. We look
forward to hearing from you.
Sincerely,
/s/ FERGUS REID
----------------------
Fergus Reid
Chairman
NOTE: INTERNATIONAL INVESTING IS SUBJECT TO CERTAIN FACTORS, SUCH AS CURRENCY
EXCHANGE RATE VOLATILITY, POSSIBLE POLITICAL, SOCIAL OR ECONOMIC INSTABILITY,
FOREIGN TAXATION AND DIFFERENCES IN AUDITING AND OTHER FINANCIAL STANDARDS.
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 GOVERNMENT AGENCY.
- -------------------------------------
<TABLE>
<S> <C>
CONTENTS
CHAIRMAN'S LETTER 1
FUND COMMENTARIES 2-6
PORTFOLIO OF INVESTMENTS 7-12
FINANCIAL STATEMENTS 13-15
NOTES TO FINANCIAL
STATEMENTS 16-23
PER SHARE DATA 24-26
PORTFOLIO OF
INVESTMENTS 27-30
FINANCIAL STATEMENTS 31-33
NOTES TO FINANCIAL
STATEMENTS 34-38
</TABLE>
1
<PAGE> 2
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FUND COMMENTARY
VISTA INTERNATIONAL EQUITY FUND
OBJECTIVE: TOTAL RETURN FROM LONG-TERM CAPITAL GROWTH AND INCOME
For the six-month period under review, the Vista International Equity
Fund had a total return of 8.05% (A Shares, without sales charge).
Most notable in the overseas equity markets' strong performance over
this period is the broad-based participation. Japan, one of many markets
posting double-digit returns, led the surge in stocks of developed countries.
The Fund's investments in Japanese retail, transportation and heavy electrical
stocks were among the top performers. Holdings in the electronic components
sector impeded performance.
In Europe, interest rate cuts helped push the equity markets higher,
and the Fund benefited from strong positions in cyclical stocks (those whose
performance tends to rise with economic growth). The Fund also benefited from
holdings in Spain and Italy, where pro-business elections lifted stock prices.
Our investments in the United Kingdom and Germany underperformed. The British
market is concerned about political outcomes, while German stocks have lagged
due to corporate restructurings.
Our holdings in the smaller Asian markets, mostly diversified
companies, surged thanks to capital inflow from the United States. The Fund's
investments in Latin America benefited from a general return of investor
confidence in light of budding economic recoveries in Mexico and Argentina.
Good currency management added to overall performance, as the dollar
strengthened against other currencies. The Fund is almost fully invested in
stocks.
Looking forward, we expect slow growth in most of Europe. Portfolio
management favors certain cyclical industries, including construction, auto
parts and chemicals, as well as some capital goods companies.
In Japan, the Fund's managers see the economic recovery continuing,
with renewed strength in the banking industry and increasing consumer
confidence, corporate earnings look poised for sharp gains, which the Fund's
managers believe should boost stocks. Management expects to favor the retail,
cyclical, transportation, machinery and heavy electrical equipment sectors.
Portfolio managers maintain their optimism for growth in the smaller
Asian markets, where they favor diversified companies. Continued growth in
Latin America will depend on improved trade balances and positive government
actions, such as industry privatization and pension system reforms, that
increase domestic savings.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN*
WITHOUT WITH SALES
CLASS A SHARES SALES CHARGE CHARGE
<S> <C> <C>
One Year 13.33% 7.92%
Since Inception
(12/31/92) 8.70% 7.12%
<CAPTION>
CLASS B SHARES WITHOUT CDSC WITH CDSC#
<S> <C> <C>
One Year 12.77% 7.77%
Since Inception
(11/15/93) 4.44% 3.30%
</TABLE>
*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.
- ---------------------------------------
- --------------------------------------------------------------------------------
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 INTERNATIONAL EQUITY FUND AND THE LIPPER
INTERNATIONAL EQUITY FUND INDEX FROM DECEMBER 31, 1992 TO APRIL 30, 1996. THE
FUND'S PERFORMANCE INCLUDES A 4.75% 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 INTERNATIONAL EQUITY FUND INDEX, AN EQUALLY-WEIGHTED PERFORMANCE
INDICATOR, TRACKS THE TOTAL RETURNS OF THE 30 LARGEST INTERNATIONAL EQUITY
FUNDS IN THE INDUSTRY. FUNDS INCLUDED IN THE INDEX ARE REPRESENTATIVE OF
THE MARKET.
2
<PAGE> 3
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FUND COMMENTARY
VISTA EUROPEAN FUND
OBJECTIVE: LONG-TERM CAPITAL GROWTH
For the six-month period ending April 30, 1996, your
Fund provided a total return of 11.7% (A Shares, without
sales charge).
The Fund performed well, despite a generally difficult
period for European stocks. Flat consumer incomes, rising
taxes and increasing unemployment has somewhat cooled the
level of stock investing. In addition, many companies have
had to concentrate more on selling their back inventories
than on creating new goods, which has slowed economic growth.
Nevertheless, there is positive news: Government debt
reduction programs and lack of consumer spending have kept
interest rates low. With the lull in demand, corporations
have used their cash on investment spending, mergers and
takeovers and other aggressive revenue management projects.
These activities often seed future economic growth and are
helping to prop up European stocks.
During this period, the Fund benefited from its strong
positions in Spain, Sweden and Ireland, which have responded
well to falling interest rates. Fund performance was also
helped by a relatively light position in the United Kingdom,
whose stock market is a bit nervous about the prospects of a
new Labor government. As for sectors, Fund holdings in
chemicals, leisure, health care, metals and oil companies
performed well as those market sectors are in the growth
stages of their market cycles. The Fund's underperformers
were its interest rate-sensitive stocks, such as banking and
insurance -- but we held relatively small positions there.
Going forward, portfolio management expects European
growth to be slow -- although any increase in demand for
European goods from non-European countries could push the
growth rate higher. Slow but steady growth should be
non-inflationary and good for stocks. The Fund's managers
will look to invest in industries that respond to an economic
upswing, such as paper and chemicals. Economic forecasts for
these sectors are optimistic. Because the European economy is
in a period of some uncertainty, however, the Fund's managers
will be very selective about which stocks they pick, staying
mostly with high-quality names.
3
<PAGE> 4
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FUND COMMENTARY
VISTA JAPAN FUND
OBJECTIVE: LONG-TERM CAPITAL GROWTH
For the six-month period ending April 30, 1996, your
Fund provided a total return of 11.60% (A Shares, without
sales charge).
Several positive economic factors have driven many
sectors of the Japanese stock market forward. Short-term
interest rates remain low and economic growth is strong.
Japanese producers are forecasting continued large gains in
production levels for April and May, a sign of resilience in
demand. Unemployment has declined, and consumer spending is
up (retail sales, for example, rose by a robust 6% in March).
In this environment, the Fund benefited from its strong
positions in the securities, machinery and transportation
industries, which were some of Japan's top performers. The
Fund's relatively small investments in the communications,
electric, gas and communications sectors -- among the
market's lowest performers -- limited their negative impact
on the portfolio. The Fund's return was held back a bit by
our investments in iron and steel, which did not fare well
because tough global competition has kept profits down.
Returns on our insurance, wholesale trading and retail
holdings were good, thanks to increased consumer and
industrial spending.
Over the next six months and beyond, the Fund's
portfolio managers anticipate stronger performance from
Japanese stocks. Thanks to rising demand, business prospects
for small- and mid-sized companies, which account for 60% of
sales and 40% of capital investment in Japan, are at their
highest levels in years. Also, institutional investors are
buying into the market and bank earnings are improving
following their large write-offs of bad debt. All of these
scenarios are positive signs for Japanese stock prices. In
all, many companies seem poised for a surge in earnings. The
Fund's portfolio managers are bullish on real estate,
machinery, shipping and consumer electronic stocks.
4
<PAGE> 5
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FUND COMMENTARY
VISTA SOUTHEAST ASIAN FUND
OBJECTIVE: LONG-TERM CAPITAL GROWTH
For the six-month period ending April 30, 1996, your
Fund provided a total return of 20.7% (A Shares, without
sales charge).
The timing of the Fund's launch was excellent, as
Southeast Asian equity markets started moving forward late in
1995. With U.S. interest rates low, investors in the United
States sought higher returns overseas, which buoyed the
region's stock markets. The market rallies were strongest
into March, when stock growth slowed as rising U.S. interest
rates prompted some profit-taking.
The Fund's heavy emphasis on Hong Kong and Malaysia
greatly helped performance, as these markets posted gains
mostly on the strength of low interest rates. The Fund's
return was hampered by its large position in Thailand, whose
stock market suffered a double setback from the upturn in
U.S. interest rates and disappointing corporate earnings.
The Fund's portfolio managers are cautiously optimistic
about Southeast Asian stocks in the coming months, as they
anticipate solid corporate earnings. With prospects for
broad-based market growth, the Fund's managers continue to
favor diversified companies in most countries. Hong Kong, the
portfolio's single biggest country holding, appears poised
for renewed economic growth, led by stabilization in the real
estate market and budding economic recovery in China, home to
many Hong Kong-owned businesses.
The Fund's managers expect to trim their holdings in
countries that already benefited from low U.S. rates earlier
this year -- specifically Malaysia. Management will look to
increase our investments in Thailand, as they anticipate an
eventual turnaround in the economy and stock market.
Generally, the Fund's managers are optimistic about prospects
for corporate earnings and economic growth in the region.
However, the Fund's managers need to be cautious in their
stock picking, as Southeast Asian stocks are vulnerable to
increases in long-term U.S. bond yields. The Fund's goal, as
always, is to use research to uncover the best stock values
throughout the region.
5
<PAGE> 6
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FUND COMMENTARY
VISTA GLOBAL FIXED INCOME FUND
OBJECTIVE: HIGH TOTAL RETURN THROUGH CURRENT INCOME AND CAPITAL APPRECIATION
For the six-month period ending April 30, 1996, the Vista Global Fixed
Income Fund provided a total return of 1.75% (A Shares, without sales charge).
Global bond prices were strong from the beginning of the period into
1996, as perceptions of weakening economic growth pointed to lower short- and
long-term interest rates. Declining consumer demand and worries of a federal
government shutdown in the United States, and the slow economies in Europe,
supported lower rates. Thus, global fixed income prices rose and yields fell.
Beginning in March, however, yields on short- and long-term bonds rose.
In the United States, data showing a rise in employment and a general
improvement in consumer spending caused inflation worries, and in the course of
a month long-term yields rose by more than 70 basis points (which is five full
percentage points on a 10-year bond). European bond prices held a bit better.
Thus, the European segment of the portfolio outperformed the U.S. portion.
Portfolio management has concentrated maturities on European bonds in
the intermediate range (five to seven years), believing they hold the best
return potential. The Fund's managers have allocated U.S. holdings among bonds
with maturities of three, five and seven years, because they don't see changes
in yield spreads among bonds with different maturities. The Fund continues to
avoid Japanese bonds because they historically are low yielding and expensive.
As a hedge against the Fund's strong position in non-U.S. bonds, the
Fund's managers have managed exposure to changes in currency exchange rates by
purchasing forward currency contracts in U.S. dollars.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
WITHOUT
SALES WITH SALES
CLASS A SHARES CHARGE CHARGE
<S> <C> <C>
One Year 4.38% (0.31)%
Since Inception (12/31/92) 5.69% 4.24%
<CAPTION>
CLASS B SHARES WITHOUT CDSC WITH CDSC#
<S> <C> <C>
One Year 3.64% (1.17)%
Since Inception (11/5/93) 3.87% 2.75%
</TABLE>
*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
of the period since inception.
- ----------------------------------------
- --------------------------------------------------------------------------------
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 GLOBAL FIXED INCOME FUND AND THE LIPPER GENERAL
WORLD INCOME FUND INDEX FROM DECEMBER 31, 1992 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 WORLD INCOME FUND INDEX FUNDS INCLUDED IN THE INDEX
ARE REPRESENTATIVE OF THE MARKET.
6
<PAGE> 7
VISTA EUROPEAN FUND
PORTFOLIO OF INVESTMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- ------------------------------------------- ------- -----------
<S> <C> <C>
LONG-TERM INVESTMENTS --
COMMON STOCK -- 94.8%
AUSTRIA -- 1.9%
Steel -- 1.9%
Boehler-Uddeholm AG*...................... 1,300 $ 105,916
-----------
FRANCE -- 14.2%
Automotive -- 3.1%
Equipements et Composants pour l'Industrie
Automobile.............................. 573 81,903
Valeo SA.................................. 1,600 88,636
Broadcasting & Publishing -- 1.5%
TV Francaise (TF1)........................ 736 79,612
Consumer Products -- 1.5%
SEITA..................................... 2,187 84,065
Financial Services -- 2.4%
Cetelem Group*............................ 480 102,821
Group Axime*.............................. 229 28,176
Oil & Gas -- 1.3%
Total SA, B Ser. B........................ 1,035 70,111
Pharmaceuticals -- 1.5%
Roussel-Uclaf............................. 347 81,637
Tire & Rubber -- 1.8%
Michelin (CGDE), B Shares................. 1,950 96,462
Utilities -- 1.1%
Compagnie Generale des Eaux............... 570 61,876
-----------
TOTAL FRANCE............................... 775,299
-----------
GERMANY -- 14.4%
Airlines -- 2.5%
Deutsche Lufthansa AG..................... 873 138,221
Automotive -- 1.4%
Volkswagen AG............................. 227 78,231
Capital Goods -- 1.5%
Mannesmann AG............................. 231 78,781
Chemicals -- 0.9%
Bayer AG.................................. 156 50,151
Computer Software -- 0.8%
SAP AG.................................... 325 42,068
Consumer Products -- 4.2%
Adidas AG*................................ 3,000 227,907
Retailing -- 1.2%
Asko Deutsche Kaufhaus AG................. 110 65,275
Utilities -- 1.9%
Veba AG................................... 2,128 105,601
-----------
TOTAL GERMANY.............................. 786,235
-----------
IRELAND -- 1.9%
Banking -- 1.9%
Bank of Ireland........................... 14,318 103,131
-----------
<CAPTION>
Issuer Shares Value
- ------------------------------------------- ------- -----------
<S> <C> <C>
ITALY -- 5.2%
Automotive -- 1.3%
Fiat SpA.................................. 21,169 $ 72,049
Oil & Gas -- 1.9%
Saipem SpA................................ 28,500 103,831
Utilities -- 2.0%
Edison SpA................................ 19,118 109,608
-----------
TOTAL ITALY................................ 285,488
-----------
NETHERLANDS -- 6.1%
Chemicals -- 2.1%
Akzo Nobel................................ 992 115,054
Financial Services -- 2.4%
Internationale Nederlanden Groep NV....... 1,681 129,618
Printing & Publishing -- 1.6%
Verenigde Nederlandse Uitgeversbedrijvan
Verenigd Bezit (VNU).................... 5,420 90,977
-----------
TOTAL NETHERLANDS.......................... 335,649
-----------
SPAIN -- 3.2%
Business Services -- 1.5%
Prosegur, CIA de Seguridad SA............. 2,350 85,612
Utilities -- 1.7%
Iberdrola SA.............................. 9,367 91,562
-----------
TOTAL SPAIN................................ 177,174
-----------
SWEDEN -- 6.9%
Diversified -- 2.0%
Atlas Copco AB, B Shares.................. 5,807 110,210
Machinery & Engineering Equipment -- 3.3%
Sandvik AB................................ 4,400 96,777
Svedala Industri AB-Free.................. 2,246 80,296
Telecommunications -- 1.6%
Telefonaktiebolaget LM Ericsson, B
Shares.................................. 4,264 86,258
-----------
TOTAL SWEDEN............................... 373,541
-----------
SWITZERLAND -- 11.9%
Chemicals -- 2.6%
Clariant AG*.............................. 400 142,692
Pharmaceuticals -- 9.3%
Ciba-Geigy AG, Registered Shares.......... 132 152,826
Roche Holding AG.......................... 13 101,994
Sandoz AG, Registered Shares.............. 232 252,758
-----------
TOTAL SWITZERLAND.......................... 650,270
-----------
UNITED KINGDOM -- 29.1%
Broadcasting -- 1.2%
General Cable Plc*........................ 22,371 65,797
Chemicals -- 0.5%
BTP Plc................................... 6,000 26,741
</TABLE>
See notes to financial statements.
7
<PAGE> 8
VISTA EUROPEAN FUND
PORTFOLIO OF INVESTMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- ------------------------------------------- ------- -----------
<S> <C> <C>
Construction/Construction Materials -- 1.5%
Berkeley Group Plc........................ 3,442 $ 28,924
Meyer International Plc................... 6,612 44,252
Wimpey (George) Plc....................... 5,573 11,917
Consumer Products -- 0.7%
B.A.T. Industries Plc..................... 5,220 39,322
Engineering Services -- 1.4%
Barratt Developments Plc.................. 7,469 30,093
Senior Engineering Group Plc.............. 31,500 50,578
Entertainment/Leisure -- 0.5%
Ladbroke Group Plc........................ 9,831 28,767
Food/Beverage Products -- 2.3%
Allied Domecq Plc......................... 6,034 46,495
Bass Plc.................................. 7,190 84,265
Hotels/Other Lodging -- 1.6%
Greenalls Group Plc....................... 9,174 85,903
Industrial Materials -- 1.6%
Charter Plc............................... 2,642 37,703
Cookson Group Plc......................... 9,926 47,068
Insurance -- 0.4%
General Accident Plc...................... 2,542 24,165
Machinery & Engineering Equipment -- 1.3%
Powerscreen International Plc............. 10,362 71,060
Media/Advertising -- 0.5%
WPP Group Plc............................. 9,355 28,427
Oil/Gas -- 1.0%
Enterprise Oil Plc........................ 8,115 54,494
Packaging -- 0.8%
David S. Smith (Holdings) Plc............. 10,337 46,225
Printing & Publishing -- 0.5%
Mirror Group Plc.......................... 7,457 25,513
Retailing -- 0.9%
Great Universal Stores Plc................ 4,298 46,727
<CAPTION>
Issuer Shares Value
- ------------------------------------------- ------- -----------
<S> <C> <C>
Shipping/Transportation -- 2.6%
British Airport Authority Plc............. 7,208 $ 59,057
Ocean Group Plc........................... 3,976 26,133
Peninsular & Orient Steam
Navigation Co. ......................... 3,179 24,949
Transport Development Group Plc........... 7,854 25,104
Telecommunications -- 4.6%
Orange Plc *.............................. 70,000 250,000
Utilities -- 5.2%
Anglian Water Plc......................... 3,859 33,703
East Midlands Electricity Plc............. 3,481 32,804
London Electricity Plc.................... 3,615 44,754
National Power Plc........................ 16,522 105,370
Southern Electricity Plc.................. 2,263 28,440
Thames Water Plc.......................... 4,972 42,677
-----------
TOTAL UNITED KINGDOM....................... 1,597,427
-----------
TOTAL COMMON STOCK
(Cost $4,702,005)......................... 5,190,130
-----------
STOCK RIGHTS -- 0.0%
UNITED KINGDOM -- 0.0%
Engineering Services -- 0.0%
Barratt Developments Plc,
Expires 5/2/96 (Cost $1,806)............ 1,867 1,904
-----------
TOTAL INVESTMENTS --
(COST $4,703,811)......................... 94.8% $ 5,192,034
============
</TABLE>
See notes to financial statements.
8
<PAGE> 9
VISTA SOUTHEAST ASIAN FUND
PORTFOLIO OF INVESTMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- ------------------------------------------- ------- ----------
<S> <C> <C>
LONG-TERM INVESTMENTS -- 84.1%
COMMON STOCK -- 81.7%
AUSTRALIA -- 5.9%
Agricultural Production/Services -- 1.6%
Elders Australia, Ltd. ................... 112,300 $ 141,277
Entertainment/Leisure -- 1.4%
Reef Casino Trust*........................ 168,270 127,014
Metals/Mining -- 2.9%
Mount Edon Gold Mines*.................... 60,000 117,941
Sons of Gwalia NL Ltd. ................... 20,000 142,315
----------
TOTAL AUSTRALIA............................ 528,547
----------
HONG KONG -- 28.4%
Banking -- 7.9%
Guoco Group Ltd. ......................... 57,000 283,702
Hang Seng Bank Ltd. ...................... 15,000 152,225
HSBC Holdings Plc......................... 18,000 268,770
Diversified -- 7.1%
Citic Pacific Ltd. ....................... 63,000 247,594
Hutchison Whampoa......................... 31,000 192,366
Swire Pacific Ltd., Class A............... 22,000 187,712
Real Estate -- 11.8%
Cheung Kong Holdings, Ltd. ............... 27,000 192,851
Henderson China Holding Ltd.*............. 132 366
Henderson Land Development Company,
Ltd. ................................... 44,000 315,698
Hysan Development Co. Ltd. ............... 51,000 163,841
New World Development Company Ltd. ....... 41,000 183,924
Sun Hung Kai Properties Ltd. ............. 20,000 190,686
Utilities -- 1.6%
China Light & Power Co. .................. 30,000 141,560
----------
TOTAL HONG KONG............................ 2,521,295
----------
INDIA -- 2.5%
Machinery & Engineering Equipment -- 0.8%
Larsen & Toubro Ltd., GDR................. 3,600 67,932
Metals/Mining -- 0.8%
Hindalco Industries Ltd., GDR............. 1,700 75,225
Utilities -- 0.9%
BSES Ltd., GDR*........................... 4,000 80,280
----------
TOTAL INDIA................................ 223,437
----------
INDONESIA -- 1.4%
Consumer Products -- 1.4%
PT Hanjaya Mandala Sampoerna, Foreign..... 11,200 123,807
----------
MALAYSIA -- 20.3%
Automotive -- 1.7%
Tractors Malaysia Holdings Bhd. .......... 77,000 148,417
Construction/Construction Materials -- 8.0%
Kedah Cement Holdings, Bhd. .............. 70,000 139,229
Sungei Way Holdings Bhd. ................. 67,000 308,974
Sunway Building Technology Bhd. .......... 50,000 248,623
Diversified -- 5.8%
Ekran Bhd. ............................... 46,000 181,695
MBM Resources Bhd. ....................... 65,000 124,071
Westmont Industries Bhd, Class A.......... 58,800 122,611
Westmont Industries Bhd. ................. 42,000 90,948
<CAPTION>
Issuer Shares Value
- ------------------------------------------- ------- ----------
<S> <C> <C>
Engineering Services -- 1.6%
SP Setia Bhd. ............................ 60,000 $ 144,362
Entertainment/Leisure -- 1.8%
Resorts World Bhd. ....................... 27,000 163,490
Utilities -- 1.4%
Tenaga Nasional Bhd. ..................... 30,000 127,520
----------
TOTAL MALAYSIA............................. 1,799,940
----------
PHILIPPINES -- 3.2%
Banking -- 1.5%
Philippine National Bank*................. 8,800 131,197
Real Estate -- 1.7%
Filinvest Land Inc.*...................... 299,200 154,409
----------
TOTAL PHILIPPINES.......................... 285,606
----------
REPUBLIC OF KOREA -- 0.0%
Electronics/Electrical Equipment -- 0.0%
Samsung Electronics Group................. 7 527
Samsung Electronics, New GDS*............. 2 151
----------
TOTAL REPUBLIC OF KOREA.................... 678
----------
SINGAPORE -- 2.6%
Airlines -- 0.9%
Singapore Airlines Ltd. .................. 8,000 80,798
Banking -- 0.9%
Overseas -- Chinese Bank Corp. ........... 6,000 82,363
Shipping/Transportation -- 0.8%
Comfort Group Ltd. ....................... 83,000 75,563
----------
TOTAL SINGAPORE............................ 238,724
----------
THAILAND -- 17.4%
Banking -- 2.8%
Krung Thai Bank Public Co. Ltd. .......... 30,000 147,332
Siam City Bank Public Co. Ltd. ........... 100,000 100,003
Construction/Construction Materials -- 1.7%
Siam Cement Co., Ltd. (Foreign)........... 3,000 154,461
Entertainment -- 2.2%
Grammy Entertainment Public Co.
(Foreign)............................... 16,000 198,977
Financial Services -- 1.5%
Finance One (Foreign)..................... 24,000 136,876
Food/Beverage Products -- 2.2%
Thai Theparos Food Product Public Co.
Ltd. ................................... 39,500 197,115
Oil & Gas -- 1.9%
PTT Exploration and Production Public Co.
Ltd. (Foreign).......................... 12,000 167,293
Telecommunications -- 1.9%
Loxley Company Ltd. (Foreign)............. 6,000 170,144
Utilities -- 1.8%
Electricity Generating Public Co. Ltd. ... 40,000 156,837
Wholesaling -- 1.4%
Siam Makro Public Co. Ltd. ............... 25,000 120,796
----------
TOTAL THAILAND............................. 1,549,834
----------
TOTAL COMMON STOCK
(Cost $6,602,043)......................... 7,271,868
----------
</TABLE>
See notes to financial statements.
9
<PAGE> 10
VISTA SOUTHEAST ASIAN FUND
PORTFOLIO OF INVESTMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- ------------------------------------------- ------- ----------
<S> <C> <C>
STOCK WARRANTS -- 2.4%
HONG KONG -- 2.4%
Banking -- 1.5%
Morgan Stanley Holdings, HSBC, Expires
2/10/97................................. 228,000 $ 134,114
Real Estate -- 0.9%
Hysan Development Co. Ltd, Expires
4/30/98................................. 2,550 0
Morgan Stanley Holdings, Cheung Kong,
Expires 2/10/97......................... 210,000 76,016
----------
TOTAL STOCK WARRANTS
(Cost $232,579)........................... 210,130
----------
TOTAL INVESTMENTS --
(COST $6,834,622)......................... 84.1% $7,481,998
==========
</TABLE>
See notes to financial statements.
10
<PAGE> 11
VISTA JAPAN FUND
PORTFOLIO OF INVESTMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- ------------------------------------- --------- ----------
<S> <C> <C>
LONG-TERM INVESTMENTS -- 87.2%
EQUITIES -- 87.2%
JAPAN -- 87.2%
Automotive -- 2.8%
SMC Corp. .......................... 900 $ 70,023
Toyota Motor Corp. ................. 4,000 91,264
----------
161,287
----------
Banking -- 6.0%
Bank of Tokyo-Mitsubishi............ 4,200 97,030
Mitsui Trust & Banking.............. 7,000 84,199
Sumitomo Bank....................... 3,000 64,152
Sumitomo Trust & Banking............ 7,000 102,242
----------
347,623
----------
Business Services -- 1.8%
Ricoh Corp., Ltd. .................. 9,000 105,679
----------
Chemicals -- 4.4%
Mitsui Petrochemical Industries..... 12,000 101,154
Toyo Ink Manufacturing.............. 12,000 74,462
UBE Industries Ltd. ................ 20,000 82,290
----------
257,906
----------
Construction -- 1.7%
Nichiei Construction................ 8,000 101,574
----------
Electronics/Electrical
Equipment -- 14.4%
Fanuc Co. .......................... 2,300 99,903
Hitachi Ltd. ....................... 11,000 118,662
Keyence Corp. ...................... 800 105,392
Mabuchi Motor....................... 1,400 86,070
NEC Corp. .......................... 8,000 101,574
Rohm Co. ........................... 2,000 127,158
Sharp Corp. ........................ 6,000 104,247
Yaskawa Electric Corp. ............. 18,000 95,197
----------
838,203
----------
Engineering Services -- 4.2%
Chiyoda Corp. ...................... 4,000 93,173
JGC Corp. .......................... 6,000 76,753
Okumura............................. 8,000 76,371
----------
246,297
----------
Financial Services -- 6.7%
New Japan Securities*............... 11,000 76,132
Nikko Securities Co. Ltd. .......... 12,000 152,360
Promise Company, Ltd. .............. 2,000 84,963
Wako Securities..................... 8,000 73,927
----------
387,382
----------
Health Care -- 1.7%
Shimadzu Corp. ..................... 14,000 95,559
----------
Glass/Ceramics -- 1.5%
Toto Ltd. .......................... 6,000 88,781
----------
<CAPTION>
Issuer Shares Value
- ------------------------------------- --------- ----------
<S> <C> <C>
Machinery & Engineering
Equipment -- 10.4%
CKD Corp. .......................... 7,000 $ 80,190
Hitachi Zosen Corp. ................ 20,000 109,593
Ishikawajima-Harima Heavy
Industries........................ 14,000 69,498
Komatsu Ltd. ....................... 12,000 115,702
Komori Corp. ....................... 3,000 79,617
Nachi-Fujikoshi Corp.*.............. 16,000 78,510
NTN Corp. .......................... 10,000 73,316
----------
606,426
----------
Oil & Gas -- 1.7%
Showa Shell Sekiyu K.K. ............ 9,000 96,228
----------
Packaging -- 1.1%
Tomoku Co. Ltd. .................... 10,000 65,679
----------
Paper/Forest Products -- 1.7%
Mitsubishi Paper Mills.............. 15,000 96,228
----------
Printing & Publishing -- 1.3%
Dai Nippon Printing Co., Ltd. ...... 4,000 75,226
----------
Retailing -- 6.3%
Aoyama Trading Co., Ltd. ........... 4,400 138,194
Isetan.............................. 6,000 88,781
Mr. Max............................. 2,750 52,505
Tokyu Department Store.............. 12,000 84,772
----------
364,252
----------
Shipping/Transportation -- 8.6%
Keisei Electric Railway............. 8,000 84,772
Mitsui O.S.K. Lines Ltd.*........... 30,000 108,829
Nagoya Railroad Co. Ltd. ........... 9,000 48,629
Nankai Electric Railway............. 7,000 46,243
Navix Line.......................... 40,000 130,595
Tokyu Corp. ........................ 10,000 81,431
----------
500,499
----------
Steel -- 5.4%
Nippon Steel Co. ................... 30,000 108,256
NKK Corp.*.......................... 25,000 78,280
Yamato Kogyo Co., Ltd. ............. 11,000 126,013
----------
312,549
----------
Telecommunications -- 1.4%
Tamura Electric Works............... 7,000 80,858
----------
Textiles -- 1.5%
Unitika Ltd.*....................... 28,000 88,476
----------
Warehousing -- 1.3%
Sumitomo Warehouse.................. 10,000 73,794
----------
</TABLE>
See notes to financial statements.
11
<PAGE> 12
VISTA JAPAN FUND
PORTFOLIO OF INVESTMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- ------------------------------------- --------- ----------
<S> <C> <C>
Wholesaling -- 1.3%
Itochu Corp. ....................... 10,000 $ 76,085
----------
TOTAL LONG-TERM INVESTMENTS
(Cost $4,610,835).................. 5,066,591
----------
<CAPTION>
Principal
Amount
---------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 1.9%
UNITED STATES -- 1.9%
Commercial Paper -- 0.9%
Household Finance Corp.,
5.20%, due 05/01/96
(Cost $50,000).................... $50,000 50,000
U.S. Government Obligations -- 1.0%
U.S. Treasury Bill,
5.07%, due 07/05/96
(Cost $59,458).................... 60,000 59,458
----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $109,458).................... 109,458
----------
TOTAL INVESTMENTS --
(COST $4,720,293)................... 89.1% $5,176,049
==========
</TABLE>
- ---------------
* = Non-income producing security.
ADS = American Depository Shares
GDR = Global Depository Receipt
GDS = Global Depository Shares
Structured Notes: The rate indicated is the rate in effect at April 30, 1996.
See notes to financial statements.
12
<PAGE> 13
VISTA MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista
Vista Vista Global
Vista Southeast Vista International Fixed
European Asian Japan Equity Income
Fund Fund Fund Fund Fund
----------- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment securities, at value (Note 1)................. $ 5,192,034 $ 7,481,998 $ 5,176,049 -- --
Investment in Portfolio, at value (Note 1)............... -- -- -- $ 33,903,430 $ 2,612,444
Cash..................................................... 75,707 1,296,004 651,206 -- --
Foreign Currency......................................... 188,090 111,181 -- -- --
Receivables:
Open forward currency contracts........................ 46,917 -- 6,670 -- --
Investment securities sold............................. -- 6,131 -- -- --
Interest and dividends................................. 20,622 26,416 12,563 -- --
Trust shares sold...................................... 1,500 16,386 27,474 141,679 --
Expense reimbursement from Distributor................. 5,257 5,778 5,395 -- 12,978
Other assets............................................. -- 102 -- 49,019 --
Unamortized organization costs (Note 1).................. -- -- -- 7,749 7,773
----------- ----------- ----------- ------------ -----------
Total assets......................................... 5,530,127 8,943,996 5,879,357 34,101,877 2,633,195
----------- ----------- ----------- ------------ -----------
LIABILITIES:
Payable for investment securities purchased.............. 1,788 -- -- -- --
Payable for Trust shares redeemed........................ -- 8,306 700 69,157 23,249
Payable for open forward currency contracts.............. 28,829 -- 45,094 -- --
Dividends payable........................................ -- -- -- -- 5,231
Accrued liabilities: (Note 2)
Distribution fees...................................... 1,152 1,955 1,120 10,070 4,306
Shareholder servicing fees............................. 10 115 23 6,857 1,798
Sub-administration fees................................ 1,176 1,523 -- 1,369 --
Custodian.............................................. 3,000 5,537 3,818 -- --
Other liabilities...................................... 17,491 28,262 16,714 148,847 11,998
----------- ----------- ----------- ------------ -----------
Total Liabilities.................................... 53,446 45,698 67,469 236,300 46,582
----------- ----------- ----------- ------------ -----------
NET ASSETS:
Paid in capital.......................................... 4,936,286 7,916,795 5,316,842 30,955,837 2,666,233
Accumulated undistributed net investment income (loss)... 16,095 2,860 (16,720) (66,177) (5,808)
Accumulated undistributed net realized gain (loss) on
investment transactions................................ 20,792 330,935 94,271 (901,218) (57,290)
Net unrealized appreciation/(depreciation) of investments
and futures............................................ 503,508 647,708 417,495 3,877,135 (16,522)
----------- ----------- ----------- ------------ -----------
Net Assets:.............................................. $ 5,476,681 $ 8,898,298 $ 5,811,888 $ 33,865,577 $ 2,586,613
============ ============ ============ ============= ============
Class A Shares......................................... $ 5,424,562 $ 8,262,996 $ 5,676,074 $ 25,785,130 $ 2,165,042
============ ============ ============ ============= ============
Class B Shares......................................... $ 52,119 $ 635,302 $ 135,814 $ 8,080,447 $ 421,571
============ ============ ============ ============= ============
Shares of beneficial interest outstanding (no par value;
unlimited number of shares authorized):
Class A Shares......................................... 485,443 684,376 508,381 1,996,118 211,822
============ ============ ============ ============= ============
Class B Shares......................................... 4,679 52,822 12,202 631,325 41,333
============ ============ ============ ============= ============
Class A Shares:
Net asset value and redemption price per share (net
assets/shares outstanding):.......................... $ 11.17 $ 12.07 $ 11.17 $ 12.92 $ 10.22
============ ============ ============ ============= ============
Maximum offering price per share (net asset value per
share/95.25%)........................................ $ 11.73 $ 12.67 $ 11.72 $ 13.56 $ 10.73
============ ============ ============ ============= ============
Class B Shares:
Net asset value and offering price per share (net
assets/shares outstanding)........................... $ 11.14 $ 12.03 $ 11.13 $ 12.80 $ 10.20
============ ============ ============ ============= ============
Cost of Investments...................................... $ 4,703,811 $ 6,834,622 $ 4,720,293
============ ============ ============
Cost of Foreign Currency................................. $ 190,634 $ 110,732 --
============ ============ ============
</TABLE>
See notes to financial statements.
13
<PAGE> 14
VISTA MUTUAL FUNDS
STATEMENT OF OPERATIONS
For the six months ended April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Vista Vista
Vista Southeast Vista International Global
European Asian Japan Equity Fixed Income
Fund* Fund* Fund* Fund Fund
--------- --------- --------- ----------- ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend................................................... $ 64,030 $ 47,727 $ 14,581 -- --
Interest................................................... 3,653 11,569 6,300 -- --
Investment income from Portfolio........................... -- -- -- $ 343,913 $ 79,759
Foreign taxes withheld..................................... (9,035) (2,326) (2,187) (41,445) --
Expenses from Portfolio.................................... -- -- -- (133,800) (17,692)
--------- --------- --------- ----------- ------------
Total investment income.................................. 58,648 56,970 18,694 168,668 62,067
--------- --------- --------- ----------- ------------
EXPENSES: (Note 2)
Shareholder servicing fees:
Class A Shares........................................... -- -- -- 32,587 2,691
Class B Shares........................................... 20 271 61 9,077 448
Distribution fees:
Class A Shares........................................... 5,860 7,343 3,975 32,587 2,691
Class B Shares........................................... 59 813 184 27,230 1,344
Investment Advisory fees................................... 23,520 30,456 20,122 -- --
Administration fees........................................ 2,352 3,046 2,012 8,333 646
Sub-administration fees.................................... 1,176 1,523 1,006 8,333 646
Custodian fees............................................. 8,232 10,084 8,324 -- --
Amortization of organization costs (Note 1)................ -- -- -- 2,327 2,328
Printing and postage....................................... 990 1,251 990 2,493 3,800
Professional fees.......................................... 7,495 7,510 7,484 17,316 7,021
Registration costs......................................... 13,143 14,568 13,788 14,959 --
Transfer agent fees........................................ 21,178 21,094 20,407 80,561 23,432
Trustees fees.............................................. 150 198 128 471 35
Other...................................................... 7,594 14,734 2,989 9,383 6,543
--------- --------- --------- ----------- ------------
Total expenses........................................... 91,769 112,891 81,470 245,657 51,625
--------- --------- --------- ----------- ------------
Less amounts waived (Note 2E)............................... 27,048 35,025 23,140 11,137 2,798
Less expenses borne by the Distributor...................... 23,499 23,756 22,916 16,380 38,278
--------- --------- --------- ----------- ------------
Net expenses............................................. 41,222 54,110 35,414 218,140 10,549
--------- --------- --------- ----------- ------------
Net investment income (loss)......................... 17,426 2,860 (16,720) (49,472) 51,518
--------- --------- --------- ----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments.............................................. 20,705 335,049 26,380 1,304,590 (22,740)
Futures and written option transactions.................. -- (2,733) 67,393 -- --
Foreign currency transactions............................ 87 (1,381) 498 77,103 25,306
Change in net unrealized appreciation/(depreciation) on:
Investments.............................................. 488,224 647,376 455,756 1,190,945 (13,760)
Foreign currency transactions............................ 15,284 332 (38,261) 36,793 (2,762)
--------- --------- --------- ----------- ------------
Net realized and unrealized gain (loss).................... 524,300 978,643 511,766 2,609,431 (13,956)
--------- --------- --------- ----------- ------------
Net increase in net assets from operations................. $ 541,726 $ 981,503 $ 495,046 $ 2,559,959 $ 37,562
========== ========== ========== ============ ==============
</TABLE>
- ---------------
* Fund commenced operations on November 2, 1995.
See notes to financial statements.
14
<PAGE> 15
VISTA MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the periods indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Vista
Vista Southeast Vista Vista Global Fixed
European Asian Japan International Equity Income
Fund* Fund* Fund* Fund Fund
---------- ---------- ---------- ---------------------------- ------------------------
11/02/95 11/02/95 11/02/95 11/01/95 Year 11/01/95 Year
through through through through ended through ended
04/30/96 04/30/96 04/30/96 04/30/96 10/31/95 04/30/96 10/31/95
---------- ---------- ---------- ------------ ------------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS:
Net investment income
(loss)................. $ 17,426 $ 2,860 ($ 16,720) ($ 49,472) ($ 69,183) $ 51,518 $ 81,571
Net realized gain (loss)
on investments, futures
and foreign currency
transactions........... 20,792 330,935 94,271 1,381,693 (2,349,722) 2,566 140,093
Change in net unrealized
appreciation/(depreciation)
on investments and
foreign exchange....... 503,508 647,708 417,495 1,227,738 1,392,900 (16,522) (56,039)
---------- ---------- ---------- ------------ ------------ ---------- ----------
Increase (decrease)
in net assets from
operations.......... 541,726 981,503 495,046 2,559,959 (1,026,005) 37,562 165,625
---------- ---------- ---------- ------------ ------------ ---------- ----------
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS FROM: (Note
1F):
Net Investment Income:
Class A................ (1,331) -- -- (137,463) -- (136,993) (74,010)
Class B................ -- -- -- (5,935) -- (22,909) (15,822)
Net Realized Gain on
Investment
Transactions:
Class A................ -- -- -- (7) (386,155) -- --
Class B................ -- -- -- (20) (85,074) -- --
---------- ---------- ---------- ------------ ------------ ---------- ----------
Total dividends and
distributions....... (1,331) -- -- (143,425) (471,229) (159,902) (89,832)
---------- ---------- ---------- ------------ ------------ ---------- ----------
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST:
Proceeds from shares
sold:
Class A Shares......... 5,576,754 8,121,131 5,500,548 9,923,768 21,109,068 1,142,270 668,603
Class B Shares......... 53,697 681,781 133,251 2,130,971 4,133,925 90,369 327,311
Reinvestment of
distributions:
Class A Shares......... 55 -- -- 116,872 319,993 67,447 57,572
Class B Shares......... -- -- -- 5,795 83,935 20,672 14,292
Payment for shares
redeemed:
Class A Shares......... (690,353) (826,790) (310,683) (12,398,973) (31,703,235) (464,537) (638,879)
Class B Shares......... (3,867) (59,327) (6,274) (1,375,860) (4,508,509) (71,557) (227,135)
---------- ---------- ---------- ------------ ------------ ---------- ----------
Net increase
(decrease) in net
assets from shares
of beneficial
interest
transactions........ 4,936,286 7,916,795 5,316,842 (1,597,427) (10,564,823) 784,664 201,764
---------- ---------- ---------- ------------ ------------ ---------- ----------
Total increase
(decrease).......... 5,476,681 8,898,298 5,811,888 819,107 (12,062,057) 662,324 277,557
NET ASSETS:
Beginning of period........ -- -- -- 33,046,470 45,108,527 1,924,289 1,646,732
---------- ---------- ---------- ------------ ------------ ---------- ----------
End of period.............. $5,476,681 $8,898,298 $5,811,888 $ 33,865,577 $ 33,046,470 $2,586,613 $1,924,289
============ ============ ============ =============== =============== ============ ============
</TABLE>
- ---------------
* Fund commenced operations on November 2, 1995.
See notes to financial statements.
15
<PAGE> 16
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
European Fund ("VEF"), Vista Southeast Asian Fund ("VSEAF"), Vista Japan
Fund ("VJF"), Vista International Equity Fund ("VIEF") and Vista Global
Fixed Income Fund ("VGFIF") collectively, the "Funds", are five separate
series of The Trust. VEF, VSEAF and VJF commenced operations on November 2,
1995. The Funds each offer two classes of shares. Class A shares generally
provide for a front-end sales charge while Class B shares provide for a
contingent deferred sales charge. 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 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:
INVESTMENT OBJECTIVES AND POLICIES --
The investment objectives for each of the Funds are discussed in the
respective Fund Commentaries included elsewhere in this report.
A. VIEF AND VGFIF -- Since inception, the VIEF and the VGFIF have utilized the
Master Feeder Fund Structure. VIEF and VGFIF seek to achieve their
investment objective by investing all of their investable assets of the
corresponding Fund in the International Equity Portfolio and Global Fixed
Income Portfolio, (the "Portfolios") respectively. The Portfolios, like the
Funds, are open-end management investment companies having the same
investment objectives as the Funds. Effective October 16, 1995, the
offshore partners withdrew their partnership interest from the Portfolios.
As of April 30, 1996 VIEF and VGFIF each owned 100% of the respective
Portfolios. The financial statements of each Portfolio, including the
portfolio of investments, are included elsewhere in this report and should
be read in conjunction with the financial statements of the Funds.
1. Valuation of Investments -- VIEF and VGFIF record their investments in
their respective Portfolios at value. Securities of the Portfolios are
recorded at value as more fully discussed in the notes to those financial
statements.
2. Foreign Currency Translations -- The books and records of the
Portfolios are maintained in U.S. dollars, the foreign currency translation
policy is more fully discussed in the notes to those financial statements.
3. Investment Income and Expenses -- VIEF and VGFIF record daily their
pro-rata share of the respective Portfolio's income, expenses, and realized
and unrealized gains and losses. In addition, the Funds accrue their own
expenses daily as incurred. 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. In calculating the net
16
<PAGE> 17
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
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.
B. VEF, VSEAF AND VJF --
1. Valuation of Investments -- Equity securities, purchased options and
futures are valued at the last sale price on the exchange on which they are
primarily traded, including the NASDAQ National Market. Securities for
which sale prices are not available and other over-the-counter securities
are valued at the last quoted bid price. Bonds and other fixed income
securities (other than short-term obligations), including listed issues,
are valued on the basis of valuations supplied by pricing services or by
matrix pricing systems of a major dealer in bonds. Short-term debt
securities with 61 days or more to maturity at time of purchase are valued,
through the 61st day prior to maturity, at market value based on quotations
obtained from market makers or other appropriate sources; thereafter, the
value on the 61st day is amortized on a straight-line basis over the
remaining number of days to maturity. Short-term investments with 60 days
or less to maturity at time of purchase are valued at amortized cost, which
approximates market. Portfolio securities for which there are no such
quotations or valuations are valued at fair value as determined in good
faith by or at the direction of the Trustees.
2. 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.
3. 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.
The Funds 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, the Funds had no outstanding futures contracts.
4. 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 option 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
17
<PAGE> 18
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
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 Funds write options on stock index securities futures. These options
are settled for cash and subject the Funds to market risk in excess of the
amounts that are reflected in the Statement of Assets and Liabilities. The
Funds, however, are 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 the Funds had no outstanding written options.
5. Foreign Currency Translation -- The books and records of the Funds are
maintained in U.S. dollars. Foreign currency amounts are translated into
U.S. dollars at the official exchange rates, or at the mean of the current
bid and asked prices, of such currencies against the U.S. dollar as quoted
by a major bank, on the following basis:
a. Market value of investment securities and other assets and
liabilities: at the closing rate of exchange at the balance sheet
date.
b. Purchases and sales of investment securities, income and expenses: at
the rates of exchange prevailing on the respective dates of such
transactions.
Although the net assets of the Funds are presented at the foreign exchange
rates and market values at the close of the periods, the Funds do not
isolate that portion of the results of operations arising as a result of
changes in the foreign exchange rates from the fluctuations arising from
changes in the market prices of securities sold during the year. Similarly,
the Funds do not isolate the effect of changes in foreign exchange rates
from the fluctuations arising from changes in the market prices of
long-term debt securities sold during the year. Accordingly, realized
foreign currency gains (losses) are included in the reported net realized
losses on security transactions.
Reported realized foreign exchange gains or losses arise from disposition
of foreign currency, currency gains or losses realized between the trade
and settlement dates on securities transactions, and the difference between
the amounts of dividends, interest, and foreign withholding taxes recorded
on the Funds' books on the transaction date and the U.S. dollar equivalent
of the amounts actually received or paid. Unrealized foreign exchange gains
and losses arise from changes (due to the changes in the exchange rate) in
the value of foreign currency and other assets and liabilities denominated
in foreign currencies which are held at period end.
6. Forward Foreign Currency Exchange Contracts -- The Funds may enter
into forward foreign currency contracts (obligations to purchase or sell
foreign currency in the future on a date and price fixed at the time the
contracts are entered into) to hedge the fund against fluctuations in the
value of its assets or liabilities due to change in the value of foreign
currencies. Each day the forward contract is open, changes in the value of
the contract are recognized as unrealized gains or losses by "marking to
market". When the forward contract is closed, or the delivery of the
currency is made or taken, the Fund records a realized gain or loss equal
to the difference between the proceeds from (or cost of) the closing
transaction and the fund's basis in the contract. The Funds are subject to
18
<PAGE> 19
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
off-balance sheet risk to the extent of the value of the contracts for
purchases of currency and in an unlimited amount for sales of currency.
7. 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.
C. GENERAL POLICIES --
1. Organization Costs -- Organization and initial registration costs
incurred in connection with establishing the VIEF and VGFIF 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.
2. 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.
3. Distributions to Shareholders -- Dividends and distributions paid to
shareholders are recorded on the ex-dividend date. The amount of dividends
and distributions from net investment income and net realized capital gains
is determined in accordance with Federal income tax regulations, which may
differ from generally accepted accounting principles. To the extent these
"book/tax" differences are permanent in nature, (i.e., that they result
from other than timing of recognition -- "temporary differences") such
amounts are reclassified within the capital accounts based on their Federal
tax-basis treatment. Dividends and distributions which exceed net
investment income or net realized capital gains for financial reporting
purposes but not for tax purposes are reported as distributions in excess
of net investment income or net realized capital gains.
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 VEF, VSEAF and VJF. 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 1.00% of the average daily net assets of each Fund.
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 for the Class B Shares of all of the Funds and for the Class
A Shares of VIEF and VGFIF, 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, the Shareholder Servicing
Agent will receive a fee that is computed daily and paid monthly at an
annual rate equal to 0.25% of the average daily net
19
<PAGE> 20
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
assets of the Class B Shares of each Fund and for the Class A Shares of
VIEF and VGFIF. No Shareholder Servicing Fees have been charged to the
Class A Shares of the VEF, VSEAF and VJF.
Since inception, Chase, and certain affiliates have been the only
Shareholder Servicing Agents of the funds. 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 funds in accordance
with Rule 12b-1 under the 1940 Act. The Class A Distribution Plans provide
that each Fund shall pay distributions fees, including payments to the
Distributor, at annual rates not to exceed 0.25% of the average daily net
assets of the Class A Shares of each Fund for distribution services. The
Class B Distribution Plan provides that each Fund shall pay distribution
fees, including payments to the Distributor, at an annual rate not to
exceed 0.75% of the average annual net assets of the Class B Shares for
distribution services.
The Distributor voluntarily waived all or a portion of sub-administration
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
VEF, VSEAF, and VJF a fee computed at the annual rate equal to 0.10% of the
respective Fund's average daily net assets and from VIEF and VGFIF at the
annual rate equal to 0.05% 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,
Administrator, Investment Adviser, Shareholder Servicing Agent and
Sub-Administrator voluntarily waived fees for each of the Funds as follows:
<TABLE>
<CAPTION>
Fee VEF VSEAF VJF VIEF VGFIF
------------------------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Administration................. $ 2,352 $ 3,046 $ 2,012 $ 8,333 $ 646
Investment Advisory............ 23,520 30,456 20,122 -- --
Shareholder Servicing.......... -- -- -- -- 1,506
Sub-Administration............. 1,176 1,523 1,006 2,804 646
-------- -------- -------- -------- --------
Total.......................... $ 27,048 $ 35,025 $ 23,140 $ 11,137 $ 2,798
-------- -------- -------- -------- --------
Distributor Reimbursement...... $ 23,499 $ 23,756 $ 22,916 $ 16,380 $ 38,278
-------- -------- -------- -------- --------
</TABLE>
F. Other -- Certain officers of the Trust are officers of Vista Fund
Distributors, Inc. or of its parent corporation, BISYS.
20
<PAGE> 21
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
Chase provides portfolio accounting and custody services for VEF, VSEAF and
VJF. 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>
VEF VSEAF VJF
----------- ----------- -----------
<S> <C> <C> <C>
Purchases (excluding U.S.
Government).......................... $ 8,621,255 $ 9,894,734 $ 6,722,473
Sales (excluding U.S. Government)...... 3,938,164 3,395,161 2,138,019
</TABLE>
<TABLE>
<CAPTION>
VIEF VGFIF
------------- -----------
<S> <C> <C>
Increase in Portfolio Investment..... $ 11,973,182 $ 1,274,409
Decrease in Portfolio Investment..... 15,215,981 632,005
</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>
VEF VSEAF VJF
----------- ----------- -----------
<S> <C> <C> <C>
Aggregate cost........................ $ 4,703,811 $ 6,384,622 $ 4,720,293
----------- ----------- -----------
Gross unrealized appreciation......... $ 529,397 $ 856,646 $ 458,558
Gross unrealized depreciation......... (41,174) (209,270) (2,802)
----------- ----------- -----------
Net unrealized appreciation........... $ 488,223 $ 647,376 $ 455,756
========== ========== ==========
</TABLE>
5. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST -- Transactions in Shares of
Beneficial Interest were as follows:
<TABLE>
<CAPTION>
Vista
Vista Southeast Vista Vista
European Asia Japan International Equity
Fund Fund Fund Fund
--------- --------- --------- -------------------------
11/02/95* 11/02/95* 11/02/95* 11/01/95 Year
through through through through ended
04/30/96 04/30/96 04/30/96 04/30/96 10/31/95
--------- --------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C>
CLASS A:
Shares sold...................................... 551,837 761,421 537,766 831,078 1,812,964
Shares issued in reinvestment of distributions... 5 -- -- (3,606) 28,001
Shares redeemed.................................. (66,399) (77,045) (29,385) (1,017,452) (2,735,407)
--------- --------- --------- ---------- ----------
Net increase in shares of beneficial interest
outstanding..................................... 485,443 684,376 508,381 (189,980) (894,442)
Outstanding shares at:
Beginning of period............................. -- -- -- 2,186,098 3,080,540
--------- --------- --------- ---------- ----------
End of period................................... 485,443 684,376 508,381 1,996,118 2,186,098
============ ============ ============ ============ ============
<CAPTION>
Vista
Global
Fixed Income
Fund
---------------------
11/01/95 Year
through ended
04/30/96 10/31/95
-------- --------
<S> <C> <C>
CLASS A:
Shares sold...................................... 108,584 64,837
Shares issued in reinvestment of distributions... (8,421) 5,497
Shares redeemed.................................. (30,671) (61,739)
-------- --------
Net increase in shares of beneficial interest
outstanding..................................... 69,492 8,595
Outstanding shares at:
Beginning of period............................. 142,330 133,735
-------- --------
End of period................................... 211,822 142,330
=========== ===========
</TABLE>
21
<PAGE> 22
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista
Vista Southeast Vista Vista
European Asia Japan International Equity
Fund Fund Fund Fund
---------- ---------- ---------- ---------------------
11/03/95** 11/03/95** 11/03/95** 11/01/95 Year
through through through through ended
04/30/96 04/30/96 04/30/96 04/30/96 10/31/95
---------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C>
CLASS B:
Shares sold...................................... 5,054 57,864 12,823 176,911 361,483
Shares issued in reinvestment of distributions... -- -- -- 671 7,428
Shares redeemed.................................. (375) (5,042) (621) (114,655) (387,778)
----- ---------- ---------- -------- --------
Net increase in shares of beneficial interest
outstanding..................................... 4,679 52,822 12,202 62,927 (18,867)
Outstanding shares at:
Beginning of period............................. -- -- -- 568,398 587,265
----- ---------- ---------- -------- --------
End of period................................... 4,679 52,822 12,202 631,325 568,398
============= ============= ============= =========== ===========
<CAPTION>
Vista
Global
Fixed Income
Fund
---------------------
11/01/95 Year
through ended
04/30/96 10/31/95
-------- --------
<S> <C> <C>
CLASS B:
Shares sold...................................... 7,815 31,154
Shares issued in reinvestment of distributions... 1,997 1,364
Shares redeemed.................................. (6,943) (21,704)
-------- --------
Net increase in shares of beneficial interest
outstanding..................................... 2,869 10,814
Outstanding shares at:
Beginning of period............................. 38,464 27,650
-------- --------
End of period................................... 41,333 38,464
=========== ========
</TABLE>
--------------------
* Commencement of operations.
** Date commenced offering classes of shares.
6. OPEN FORWARD FOREIGN CURRENCY CONTRACTS -- The following forward foreign
currency contracts were open at April 30, 1996:
VISTA EUROPEAN FUND
<TABLE>
<CAPTION>
Net
Delivery Market Unrealized
Value (Local Cost Settlement Value Gain (Loss)
Purchases Currency) (USD) Date (USD) (USD)
------------------------------ ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
Deutsche Mark................. 361,075 $ 250,000 05/09/96 $ 235,578 ($ 14,422)
Deutsche Mark................. 360,825 250,000 05/22/96 235,593 (14,407)
------------ ------------ -----------
Total Purchases............... $ 500,000 $ 471,171 ($ 28,829)
========== =========== ===========
Sales
------------------------------
Deutsche Mark................. 369,350 $ 250,000 05/09/96 $ 240,977 $ 9,023
Deutsche Mark................. 365,783 250,000 05/09/96 238,830 11,170
Deutsche Mark................. 730,000 498,124 06/26/96 477,662 20,462
Deutsche Mark................. 370,000 248,364 06/26/96 242,102 6,262
------------ ------------ -----------
Total Sales................... $ 1,246,488 $ 1,199,571 $ 46,917
========== =========== ===========
</TABLE>
VISTA JAPAN FUND
<TABLE>
<CAPTION>
Purchases
------------------------------
<S> <C> <C> <C> <C> <C>
Japanese Yen.................. 103,970,000 $ 1,000,000 05/13/96 $ 994,401 ($ 5,599)
Japanese Yen.................. 104,644,000 1,000,000 06/25/96 1,006,670 6,670
------------ ------------ -----------
$ 2,000,000 $ 2,001,071 $ 1,071
========== =========== ===========
Sales
------------------------------
Japanese Yen.................. 105,810,000 $ 1,000,000 05/13/96 $ 1,011,999 ($ 11,999)
Japanese Yen.................. 104,858,000 1,000,000 06/24/96 1,008,599 (8,599)
Japanese Yen.................. 105,915,000 1,000,000 06/25/96 1,018,897 (18,897)
------------ ------------ -----------
$ 3,000,000 $ 3,039,495 ($ 39,495)
========== =========== ===========
</TABLE>
22
<PAGE> 23
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
7. FOREIGN CASH POSITIONS
VISTA EUROPEAN FUND
<TABLE>
<CAPTION>
Net
Market Unrealized
Cost Value Gain (Loss)
Currency Local Value (USD) (USD) (USD)
-------------------------------------------------- ------------ --------- --------- -----------
<S> <C> <C> <C> <C>
Deutsche Mark..................................... 147,968 $ 98,301 $ 96,489 ($1,812)
French Franc...................................... 50,105 10,205 9,678 (527)
Italian Lira...................................... 113,087,637 72,414 72,281 (133)
Swedish Krona..................................... 65,536 9,714 9,642 (72)
--------- --------- -----------
$ 190,634 $ 188,090 ($2,544)
========= ========= ===========
</TABLE>
VISTA SOUTHEAST ASIA FUND
<TABLE>
<S> <C> <C> <C> <C>
Hong Kong Dollar.................................. 192,651 $ 24,914 $ 24,906 ($ 8)
Malaysian Ringgit................................. 102,025 40,534 40,913 379
Thai Baht......................................... 1,145,271 45,284 45,362 78
--------- --------- -----------
$ 110,732 $ 111,181 $ 449
========= ========= ===========
</TABLE>
8. 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.
9. 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 advised by affiliates of Chemical Banking
Corporation merged into certain series of the Trust effective May 6, 1996.
23
<PAGE> 24
VISTA MUTUAL FUNDS
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OF BENEFICIAL INTEREST
OUTSTANDING
Throughout each period indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Vista Vista
European Southeast Asian Japan
Fund Fund Fund
----------------------- ----------------------- -----------------------
Class A* Class B** Class A* Class B** Class A* Class B**
--------- --------- --------- --------- --------- ---------
11/02/95 11/03/95 11/02/95 11/03/95 11/02/95 11/03/95
through through through through through through
04/30/96 04/30/96 04/30/96 04/30/96 04/30/96 04/30/96
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period.......... $ 10.00 $ 9.97 $ 10.00 $ 10.01 $ 10.00 $ 10.00
--------- --------- --------- --------- --------- ---------
Income From Investment Operations:
Net Investment Income...................... 0.036 0.009 (0.002) (0.005) (0.034) 0.047
Net Gains or (Losses) in Securities (both
realized and unrealized)................. 1.137 1.161 2.072 2.025 1.204 1.082
--------- --------- --------- --------- --------- ---------
Total from Investment Operations........... 1.173 1.170 2.070 2.020 1.170 1.129
--------- --------- --------- --------- --------- ---------
Less Distributions:
Dividends from Net Investment Income....... 0.003 -- -- -- -- --
Distributions from Capital Gains........... -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total Distributions........................ 0.003 -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Net Asset Value, End of Period................ $ 11.17 $ 11.14 $ 12.07 $ 12.03 $ 11.17 $ 11.13
========== ========== ========== ========== ========== ==========
Total Return (1).............................. 11.73% 11.74% 20.70% 20.18% 11.60% 11.30%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted)...... $ 5,425 $ 52 $ 8,263 $ 635 $ 5,676 $ 136
Ratio of Expenses to Average Net Assets #.... 1.75% 2.47% 1.75% 2.46% 1.75% 2.45%
Ratio of Net Investment Income to Average Net
Assets #................................... 1.13% 3.26% (0.05%) (0.26%) (0.87%) 2.30%
Ratio of expenses without waivers and
assumption of expenses to Average Net
Assets #................................... 2.75% 3.48% 2.52% 3.25% 2.88% 3.59%
Ratio of net investment income without
waivers and assumptions of expenses #...... 0.13% 2.25% (0.82%) (1.04%) (2.00%) 1.16%
Portfolio Turnover Rate....................... 94% 94% 68% 68% 67% 67%
</TABLE>
- ---------------
(1) Total return figures do not include the effect of any sales load.
* Commencement of operations.
** Commencement of offering of class of shares.
# Short periods have been annualized.
24
<PAGE> 25
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 International Equity Fund
-----------------------------------------------------------------------------
Class A Class B
------------------------------------------ --------------------------------
11/01/95 Year ended 12/31/92* 11/01/95 Year 11/04/93**
through ------------------- through through ended through
04/30/96 10/31/95 10/31/94 10/31/93 04/30/96 10/31/95 10/31/94
-------- -------- -------- --------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period.............. $ 12.02 $ 12.31 $ 11.82 $ 10.00 $ 11.89 $ 12.23 $ 11.69
-------- -------- -------- --------- -------- -------- ----------
Income From Investment Operations:
Net Investment Income.......................... 0.039 0.039 (0.022) (0.010) 0.027 (0.026) (0.053)
Net Gains or (Losses) in Securities (both
realized and unrealized)..................... 0.920 (0.190) 0.566 1.830 0.890 (0.180) 0.647
-------- -------- -------- --------- -------- -------- ----------
Total from Investment Operations............... 0.959 (0.151) 0.544 1.820 0.917 (0.206) 0.594
-------- -------- -------- --------- -------- -------- ----------
Less Distributions:
Dividends from Net Investment Income........... 0.063 -- -- -- 0.010 -- --
Distributions from Capital Gains............... -- 0.137 0.054 -- -- 0.137 0.054
-------- -------- -------- --------- -------- -------- ----------
Total Distributions............................ 0.063 0.137 0.054 -- 0.010 0.137 0.054
-------- -------- -------- --------- -------- -------- ----------
Net Asset Value, End of Period.................... $ 12.92 $ 12.02 $ 12.31 $ 11.82 $ 12.80 $ 11.89 $ 12.23
======== ======== ======== ========= ======== ======== ==========
Total Return (1).................................. 8.05% (1.19%) 4.61% 22.23% 7.74% (1.61%) 5.09%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted).......... $25,785 $26,287 $37,926 $ 14,290 $ 8,080 $ 6,759 $ 7,182
Ratio of Expenses to Average Net Assets #........ 2.00% 2.01% 2.00% 2.13% 2.50% 2.50% 2.50%
Ratio of Net Investment Income to Average Net
Assets #....................................... (0.20%) (0.10%) (0.27%) (0.14%) (0.64%) (0.53%) (0.94%)
Ratio of expenses without waivers and assumption
of expenses to Average Net Assets # (2)........ 2.86% 2.86% 2.86% 2.86% 3.36% 3.36% 3.36%
Ratio of net investment income without waivers
and assumptions of expenses #.................. (1.06%) (0.96%) (1.13%) (0.87%) (1.50%) (1.40%) (1.80%)
</TABLE>
- ---------------
(1) Total return figures do not include the effect of any sales load.
(2) Not to exceed the maximum statutory ratio.
* Commencement of operations.
** Commencement of offering of class of shares.
# Short periods have been annualized.
25
<PAGE> 26
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 Global Fixed Income
------------------------------------------------------------------------------
Class A Class B
------------------------------------------- --------------------------------
11/01/95 Year ended 12/31/92* 11/01/95 Year 11/04/93**
through ------------------- through through ended through
04/30/96 10/31/95 10/31/94 10/31/93 04/30/96 10/31/95 10/31/94
-------- -------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period............. $ 10.65 $10.21 $ 10.52 $ 10.00 $ 10.63 $10.20 $ 10.48
-------- -------- -------- ---------- -------- -------- ----------
Income From Investment Operations:
Net Investment Income......................... 0.548 0.353 0.464 0.300 0.588 0.298 0.339
Net Gains or (Losses) in Securities (both
realized and unrealized).................... (0.380) 0.610 (0.495) 0.550 (0.450) 0.590 (0.382)
-------- -------- -------- ---------- -------- -------- ----------
Total from Investment Operations.............. 0.168 0.963 (0.031) 0.850 0.138 0.888 (0.043)
-------- -------- -------- ---------- -------- -------- ----------
Less Distributions:
Dividends from Net Investment Income.......... 0.597 0.523 0.279 0.300 0.571 0.463 0.237
Distributions from Capital Gains.............. -- -- -- 0.030 -- -- --
-------- -------- -------- ---------- -------- -------- ----------
Total Distributions........................... 0.597 0.523 0.279 0.330 0.571 0.463 0.237
-------- -------- -------- ---------- -------- -------- ----------
Net Asset Value, End of Period................... $ 10.22 $10.65 $ 10.21 $ 10.52 $ 10.20 $10.63 $ 10.20
======== ======== ======== ========== ======== ======== ==========
Total Return (1)................................. 1.75% 9.54% (0.66%) 10.42% 1.50% 8.82% (0.51%)
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted)......... $ 2,165 $1,515 $ 1,365 $ 2,361 $ 422 $ 409 $ 282
Ratio of Expenses to Average Net Assets #....... 1.86% 1.86% 1.86% 1.88% 2.50% 2.50% 2.50%
Ratio of Net Investment Income to Average Net
Assets #...................................... 4.10% 4.58% 3.83% 3.29% 3.36% 3.29% 3.79%
Ratio of expenses without waivers and assumption
of expenses to Average Net Assets # (2)....... 2.86% 2.86% 2.86% 2.86% 3.36% 3.36% 3.36%
Ratio of net investment income without waivers
and assumptions of expenses #................. 3.10% 3.58% 2.83% 2.31% 2.50% 2.43% 2.93%
</TABLE>
- ---------------
(1) Total return figures do not include the effect of any sales load.
(2) Not to exceed the maximum statutory ratio.
* Commencement of operations.
** Commencement of offering of class of shares.
# Short periods have been annualized.
26
<PAGE> 27
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- ------------------------------------- --------- -----------
<S> <C> <C>
LONG-TERM INVESTMENTS --
COMMON STOCK -- 97.2%
ARGENTINA -- 1.1%
Banking -- 1.1%
Banco Frances del Rio de la Plata
S.A., ADS *....................... 13,000 $ 373,750
-----------
AUSTRALIA -- 0.5%
Agricultural
Production/Services -- 0.1%
Elders Australia Ltd. .............. 30,500 38,335
Entertainment/Leisure -- 0.2%
Reef Casino Trust................... 87,520 66,001
Metals/Mining -- 0.2%
Gasgoyne Gold Mines Ltd. ........... 20,000 44,776
Mount Edon Gold Mines............... 20,000 39,277
-----------
TOTAL AUSTRALIA...................... 188,389
-----------
AUSTRIA -- 1.2%
Steel -- 1.2%
Boehler -- Uddeholm AG.............. 5,082 414,713
-----------
FRANCE -- 7.4%
Automotive -- 1.7%
Equipements et Composants pour
l'Industrie Automobile............ 2,035 291,418
Valeo SA............................ 5,000 277,504
Broadcasting & Publishing -- 0.5%
TV Francaise (TF1).................. 1,700 184,228
Computer Software -- 0.4%
Group Axime......................... 1,032 127,215
Financial Services -- 1.3%
Cetelem Group*...................... 2,037 437,162
Oil & Gas -- 0.7%
Total SA, Ser. B.................... 3,310 224,638
Pharmaceuticals -- 1.0%
Roussel-Uclaf....................... 1,475 347,663
Tire & Rubber -- 1.0%
Michelin (CGDE), B Shares........... 7,000 346,918
Utilities -- 0.8%
Compagnie Generale des Eaux......... 2,425 263,735
-----------
TOTAL FRANCE......................... 2,500,481
-----------
GERMANY -- 8.2%
Airlines -- 1.4%
Deutsche Lufthansa AG............... 2,969 470,851
Automotive -- 0.7%
Volkswagen AG....................... 771 266,149
Capital Goods -- 0.9%
Mannesmann AG....................... 851 290,707
Chemicals -- 1.0%
Bayer AG............................ 1,010 325,232
Computer Software -- 0.4%
SAP AG.............................. 1,000 129,654
Consumer Products -- 1.8%
Adidas AG........................... 7,837 596,349
Retailing -- 0.8%
Asko Deutsche Kaufhaus AG........... 466 276,982
<CAPTION>
Issuer Shares Value
- ------------------------------------- --------- -----------
<S> <C> <C>
Utilities -- 1.2%
Vega Group PLC...................... 8,344 $ 414,747
-----------
TOTAL GERMANY........................ 2,770,671
-----------
HONG KONG -- 6.0%
Banking -- 1.6%
Guoco Group Ltd..................... 16,000 79,633
Hang Seng Bank Ltd. ................ 14,000 142,072
HSBC Holdings PLC................... 23,511 351,047
Diversified -- 1.5%
Citic Pacific Ltd. ................. 35,000 137,548
Hutchison Whampoa................... 30,000 186,155
Swire Pacific, Ltd, Class A......... 20,000 170,642
Real Estate -- 2.5%
Cheung Kong (Holdings) Ltd. ........ 30,000 214,272
Henderson China Holding Ltd. ....... 212 588
Henderson Land Development Company,
Ltd. ............................. 30,000 215,241
New World Development Company,
Ltd. ............................. 42,000 188,404
Sun Hung Kai Properties Ltd. ....... 20,000 190,679
Utilities -- 0.4%
China Light & Power Co. ............ 30,000 141,555
-----------
TOTAL HONG KONG...................... 2,017,836
-----------
INDONESIA -- 0.3%
Consumer Products -- 0.3%
PT Hanjaya Mandala Sampoerna........ 10,000 110,349
-----------
IRELAND -- 1.3%
Banking -- 1.3%
Bank of Ireland..................... 60,823 439,108
-----------
ITALY -- 3.3%
Automotive -- 0.9%
Fiat SpA............................ 91,733 312,090
Oil & Gas -- 1.1%
Saipem SpA.......................... 100,000 364,608
Utilities -- 1.3%
Edison SpA.......................... 77,500 442,886
-----------
TOTAL ITALY.......................... 1,119,584
-----------
JAPAN -- 34.9%
Automotive -- 2.1%
Nissan Motor Co, Ltd. .............. 85,000 717,635
Banking -- 2.2%
Bank of Tokyo-Mitsubishi............ 9,450 218,414
Mitsui Trust & Banking.............. 45,000 541,521
Chemicals -- 1.0%
Mitsui Petrochemical Industries..... 40,000 337,329
Engineering Services -- 1.0%
JGC Corp. .......................... 26,000 332,744
Electronics/Electrical Equipment -- 7.5%
Fanuc Co. .......................... 21,000 912,564
Keyence Corp. ...................... 8,000 1,054,391
Rohm Company........................ 6,000 381,071
Yaskawa Electric Corp. ............. 46,000 243,389
</TABLE>
See notes to financial statements.
27
<PAGE> 28
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- ------------------------------------- --------- -----------
<S> <C> <C>
Glass & Ceramic -- 0.4%
Toto Ltd. .......................... 8,000 $ 118,428
Health Care -- 1.0%
Olympus Optical Co., Ltd. .......... 35,000 377,728
Machinery & Engineering Equipment
-- 5.9%
Hitachi Zosen Corp.,................ 45,000 246,693
Ishikawajima-Harima Heavy
Industries........................ 50,000 248,317
Komori Corp. ....................... 21,000 557,567
Mitsubishi Heavy Industries Ltd. ... 75,000 669,022
Nachi-Fujikoshi Corp. .............. 65,000 319,087
Paper/Forest Products -- 0.4%
Mitsubishi Paper Mills.............. 20,000 128,361
Retailing -- 3.7%
Aoyama Trading Co., Ltd. ........... 4,000 123,394
Isetan.............................. 10,000 148,035
Ito-Yokado Co. Ltd. ................ 12,000 707,130
Mr. Max............................. 6,600 126,068
Tokyu Department Store.............. 17,000 120,147
Shipping/Transportation -- 3.9%
Mitsui O.S.K. Lines Ltd. ........... 165,000 598,825
Navix Line.......................... 180,000 587,938
Tokyu Corp. ........................ 17,000 138,494
Steel -- 2.9%
Nippon Steel Co. ................... 114,000 411,556
NKK Corp. .......................... 180,000 563,870
Textiles -- 1.8%
Toray Industries, Inc. ............. 33,000 224,402
Unitika Ltd. ....................... 110,000 347,739
Toys -- 1.1%
Bandai Co. LTD...................... 9,000 368,750
-----------
TOTAL JAPAN.......................... 11,870,609
-----------
MALAYSIA -- 3.5%
Automotive -- 0.3%
Tractors Malaysia Holdings Bhd. .... 50,000 98,263
Construction/Construction
Materials -- 1.2%
Kedah Cement Holdings, Bhd. ........ 65,000 129,307
Sungei Way Holdings Bhd. ........... 25,000 115,309
Sunway Building Technology Bhd. .... 30,000 149,200
Diversified -- 1.1%
Ekran Bhd. ......................... 38,000 150,122
MBM Resources Bhd. ................. 60,000 114,547
Westmont Bhd........................ 45,000 97,461
Entertainment -- 0.5%
Resorts World Bhd. ................. 30,000 181,687
Utilities -- 0.4%
Tenaga Nasional Bhd. ............... 34,000 144,547
-----------
TOTAL MALAYSIA....................... 1,180,443
-----------
NETHERLANDS -- 3.6%
Chemicals -- 1.2%
Akzo Nobel.......................... 3,371 391,496
Financial Services -- 1.3%
Internationale Nederlanden Groep
NV................................ 5,714 441,180
<CAPTION>
Issuer Shares Value
- ------------------------------------- --------- -----------
<S> <C> <C>
Printing & Publishing -- 1.1%
Verenigde Nederlandse
Uitgeversbedrijvan Verenigd Bezit
(VNU)............................. 23,020 $ 386,913
-----------
TOTAL NETHERLANDS.................... 1,219,589
-----------
PHILIPPINES -- 0.3%
Banking -- 0.3%
Philippine National Bank............ 6,000 89,518
-----------
SINGAPORE -- 0.5%
Airlines -- 0.2%
Singapore Airlines Ltd. (Foreign)... 8,000 80,808
Banking -- 0.3%
Overseas Chinese Banking Corp. ..... 6,000 82,373
-----------
TOTAL SINGAPORE...................... 163,181
-----------
SPAIN -- 1.9%
Business Services -- 0.9%
Prosegur, CIA de Seguridad SA....... 7,990 291,688
Steel -- 0.1%
Acerinox SA......................... 279 31,566
Utilities -- 0.9%
Iberdrola SA........................ 31,843 311,916
-----------
TOTAL SPAIN.......................... 635,170
-----------
SWEDEN -- 4.0%
Machinery & Engineering
Equipment -- 3.1%
Atlas Copco AB, B Shares............ 19,741 375,346
Sandvik AB, B Shares................ 15,500 341,543
Svedala Industri AB-Free............ 9,542 341,758
Telecommunications -- 0.9%
Telefonaktiebolaget LM Ericsson, B
Shares............................ 14,500 293,862
-----------
TOTAL SWEDEN......................... 1,352,509
-----------
SWITZERLAND -- 4.5%
Pharmaceuticals -- 4.5%
Ciba-Geigy AG, Class B.............. 188 216,911
Ciba-Geigy AG, Registered Shares.... 371 430,444
Sandoz AG, Registered Shares........ 791 863,604
-----------
TOTAL SWITZERLAND.................... 1,510,959
-----------
THAILAND -- 2.4%
Banking -- 0.6%
Krung Thai Bank Ltd. (Foreign)...... 20,000 98,239
Siam City Bank Public Co. Ltd. ..... 100,000 100,022
Entertainment -- 0.4%
Grammy Entertainment Public Co.
(Foreign)......................... 10,000 124,384
Financial Services -- 0.5%
Finance One Co., Ltd. .............. 30,000 171,126
Telecommunications -- 0.7%
Loxley Company Ltd. (Foreign)....... 16,000 226,901
</TABLE>
See notes to financial statements.
28
<PAGE> 29
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Issuer Shares Value
- ------------------------------------- --------- -----------
<S> <C> <C>
Utilities -- 0.2%
Electricity Generating Public Co.
Ltd. ............................. 23,000 $ 90,198
-----------
TOTAL THAILAND....................... 810,870
-----------
UNITED KINGDOM -- 12.3%
Broadcasting -- 0.6%
General Cable Plc................... 70,765 208,611
Chemicals -- 0.3%
BTP Plc............................. 19,000 84,874
Construction/Construction
Materials -- 0.8%
Berkeley Group Plc.................. 11,779 99,477
George Wimpey Plc................... 19,209 41,603
Meyer International Plc............. 21,143 144,214
Consumer Products -- 0.4%
B.A.T. Industries Plc............... 16,301 123,201
Engineering Services -- 0.8%
Barratt Developments Plc............ 25,563 103,617
Senior Engineering Group Plc........ 105,965 171,330
Entertainment/Leisure -- 0.3%
Ladbroke Group Plc.................. 32,429 95,355
Food/Beverage Products -- 1.3%
Allied Domecq Plc................... 20,653 159,509
Bass Plc............................ 22,598 266,300
Industrial Materials -- 0.8%
Charter Plc......................... 8,450 120,738
Cookson Group Plc................... 31,547 147,801
Insurance -- 0.2%
General Accident Plc................ 8,386 79,714
Machinery & Engineering -- 0.7%
Powerscreen International Plc....... 33,329 228,085
Media/Advertising -- 0.3%
WPP Group Plc....................... 30,860 94,454
Oil/Gas -- 0.6%
Enterprise Oil Plc.................. 27,773 187,765
Packaging -- 0.4%
David S. Smith (Holdings) Plc....... 33,050 146,641
Printing & Publishing -- 0.2%
Mirror Group Plc.................... 23,845 81,770
Retailing -- 0.5%
Great Universal Stores Plc.......... 14,711 160,303
Shipping/Transportation -- 1.4%
British Airport Authority Plc....... 23,778 195,625
Ocean Group Plc..................... 13,562 89,751
Peninsular & Orient Steam Navigation
Co. .............................. 10,167 79,746
Transport Development Group Plc..... 26,491 85,066
Utilities -- 2.7%
Anglian Water Plc................... 13,209 115,030
East Midlands Electricity Plc....... 11,859 111,746
<CAPTION>
Issuer Shares Value
- ------------------------------------- --------- -----------
<S> <C> <C>
London Electricity Plc.............. 11,925 $ 148,239
National Power Plc.................. 53,172 339,887
Southern Electricity Plc............ 7,641 96,249
Thames Water Plc.................... 17,018 146,793
-----------
TOTAL UNITED KINGDOM................. 4,153,494
-----------
TOTAL COMMON STOCK
(Cost $29,100,186).................. 32,921,223
-----------
STOCK RIGHTS -- 0.0%
UNITED KINGDOM -- 0.0%
Engineering Services -- 0.0%
Barratt Developments Plc,
Expires 5/2/96 (Cost $0).......... 6,390 0
-----------
<CAPTION>
Principal
Amount
(In Local
Currency)
---------
<S> <C> <C>
CORPORATE BONDS & NOTES -- 0.0%
FRANCE -- 0.0%
Banking -- 0.0%
Societe Generale(FRF), 3.50%,
due 1/1/00
(Cost $2,844)..................... $15,840 3,558
-----------
TOTAL LONG-TERM INVESTMENTS
(Cost $29,103,030)................. 32,924,781
-----------
SHORT-TERM INVESTMENTS -- 1.3%
UNITED STATES -- 1.3%
U.S. Government Obligation -- 0.3%
U.S. Treasury Bill, 4.90% due
5/16/96........................... 95,000 93,960
Commercial Paper -- 0.9%
Household Finance Corp., 5.20%,
due 5/1/96........................ 335,000 335,000
Money Market Deposit Account -- 0.1%
Chase Manhattan Bank, 4.00%,
due 05/01/96...................... 27,272 27,272
-----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $456,232).................... 456,232
-----------
TOTAL INVESTMENTS --
(COST $29,559,262).................. 98.5% $33,381,013
=============
</TABLE>
See notes to financial statements.
29
<PAGE> 30
GLOBAL FIXED INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(in local Value
Issuer currency) (USD)
- --------------------------------------- ----------- ----------
<S> <C> <C>
LONG-TERM INVESTMENTS -- 96.9%
BONDS & NOTES -- 96.9%
DENMARK -- 3.2%
Government Obligation --3.2%
Kingdom of Denmark,
7.00%, due 12/15/04................. 500,000 $ 84,571
----------
GERMANY -- 2.7%
Government Obligation --2.7%
Treuhandanstalt,
7.125%, due 1/29/03................. 100,000 69,645
----------
ITALY -- 14.7%
Government Obligation --14.7%
Buoni Poliennali Del Tesoro, (BTPS)
Italian Government,
10.50%, due 4/01/05................. 100,000,000 67,375
Buoni Poliennali Del Tesoro, (BTPS)
Italian Government,
9.50%, due 2/01/06.................. 385,000,000 244,802
European Investment Bank,
10.00%, due 1/24/01................. 50,000 70,982
----------
383,159
----------
NETHERLANDS -- 2.3%
Government Obligation --2.3%
Netherland Government,
6.50%, due 4/15/03.................. 99,000 59,914
----------
SPAIN -- 21.4%
Government Obligation --21.4%
Banc Caisse Epar (Structured Note),
5.26%, due 3/29/01 (USD)............ 100,000 100,000
Bonos Y Obligation Del Estado Espania,
10.10%, due 2/28/01................. 55,300,000 460,985
----------
560,985
----------
<CAPTION>
Principal
Amount
(in local Value
Issuer currency) (USD)
- --------------------------------------- ----------- ----------
<S> <C> <C>
SWEDEN -- 1.2%
Government Obligation --1.2%
Swedish Caisse #1036,
10.25% 5/05/00...................... 200,000 $ 32,355
----------
UNITED KINGDOM -- 3.6%
Government Obligation --3.6%
United Kingdom Treasury Gilt Bond,
8.50% 12/07/05...................... 60,000 93,390
----------
UNITED STATES -- 47.8%
U.S. Government Obligations --47.8%
U.S. Treasury Note,
5.00%, due 2/15/99.................. 400,000 387,800
U.S. Treasury Note,
5.125%, due 2/28/98................. 300,000 295,266
U.S. Treasury Note,
5.875%, due 8/15/98................. 380,000 377,781
U.S. Treasury Note,
6.375%, due 8/15/02................. 190,000 187,751
----------
1,248,598
----------
TOTAL INVESTMENTS --
(COST $2,547,337)..................... 96.9% $2,532,617
==========
- ----
* = Non-income producing security
ADS = American Depository Shares
GDR = Global Depository Receipt
GDS = Global Depository Shares
Structured Notes: the rate indicated is the rate in effect at
April 30,
1996.
</TABLE>
See notes to financial statements.
30
<PAGE> 31
VISTA MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Vista
International Global
Equity Fixed Income
Portfolio Portfolio
------------ ------------
<S> <C> <C>
ASSETS:
Investment securities, at value (Note 1)............................. $ 33,381,013 $2,532,617
Cash................................................................. 373,772 51,594
Receivables:
Investment securities sold......................................... 66,998 --
Interest and dividends............................................. 151,703 38,968
Open forward currency contracts.................................... 83,453 16,979
Expense reimbursement from Distributor............................. 7,902 --
Other assets......................................................... 472 --
Unamortized organization costs (Note 1).............................. 19,180 --
----------- ----------
Total assets..................................................... 34,084,493 2,640,158
----------- ----------
LIABILITIES:
Payable for investment securities purchased.......................... 104,292 --
Payable for open forward currency contracts.......................... 38,186 19,650
Accrued liabilities: (Note 2)
Custodian.......................................................... 8,053 --
Other.............................................................. 30,532 8,063
----------- ----------
Total Liabilities................................................ 181,063 27,713
----------- ----------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS............... $ 33,903,430 $2,612,445
=========== ==========
Cost of Investments.................................................... $ 29,559,262 $2,547,337
=========== ==========
</TABLE>
See notes to financial statements.
31
<PAGE> 32
VISTA MUTUAL FUNDS
STATEMENT OF OPERATIONS
For the six months ended April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Vista
International Global
Equity Fixed Income
Portfolio Portfolio
----------- ------------
<S> <C> <C>
INVESTMENT INCOME:
Dividend............................................................... $ 318,980 --
Interest............................................................... 21,679 $ 79,762
Foreign taxes withheld................................................. (41,445) --
----------- ------------
Total investment income.............................................. 299,214 79,762
----------- ------------
EXPENSES: (Note 2)
Investment Advisory fees............................................... 167,239 9,681
Administration fees.................................................... 8,363 645
Custodian fees......................................................... 24,242 733
Amortization of organization costs (Note 1)............................ 5,742 --
Professional fees...................................................... 40,592 6,110
Trustees fees.......................................................... 1,107 467
Other.................................................................. 62,117 10,382
----------- ------------
Total expenses....................................................... 309,402 28,018
----------- ------------
Less amounts waived by the Advisor and Administrator (Note 2E)......... 175,602 10,326
----------- ------------
Net expenses......................................................... 133,800 17,692
----------- ------------
Net investment income.............................................. 165,414 62,070
----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments.......................................................... 1,666,398 (22,742)
Futures Transactions................................................. 22,350 --
Foreign currency transactions........................................ 53,835 25,306
Change in net unrealized appreciation/(depreciation) on:
Investments.......................................................... 829,137 (13,760)
Foreign currency contracts and translations.......................... 39,769 (2,762)
----------- ------------
Net realized and unrealized gain (loss)................................ 2,611,489 (13,958)
----------- ------------
Net increase in net assets from operations........................... $ 2,776,903 $ 48,112
========= ==========
</TABLE>
See notes to financial statements.
32
<PAGE> 33
VISTA MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the periods indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista
Vista Global
International Equity Fixed Income
Portfolio Portfolio
----------------------------- ----------------------------
11/01/95 Year 11/01/95 Year
through ended through ended
04/30/96 10/31/95 04/30/96 10/31/95
------------- ------------- ----------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income............................................ $ 165,414 $ 331,777 $ 62,070 $ 4,826,864
Net realized gain (loss) on investments.......................... 1,742,583 (2,783,479) 2,564 3,642,192
Change in net unrealized appreciation/(depreciation) on
investments and foreign currency translations.................. 868,906 1,386,352 (16,522) 449,358
------------- ------------- ----------- --------------
Increase (decrease) in net assets from operations................ 2,776,903 (1,065,350) 48,112 8,918,414
------------- ------------- ----------- --------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Contributions.................................................... 11,973,182 27,092,056 1,274,409 42,291,581
Withdrawals...................................................... (15,215,981) (47,239,948) (632,005) (141,255,554)
------------- ------------- ----------- --------------
Net increase (decrease) from transactions in investors'
beneficial interests........................................... (3,242,799) (20,147,892) 642,404 (98,963,973)
------------- ------------- ----------- --------------
Net increase (decrease) in net assets............................ (465,896) (21,213,242) 690,516 (90,045,559)
NET ASSETS:
Beginning of period.............................................. 34,369,326 55,582,568 1,921,929 91,967,488
------------- ------------- ----------- --------------
End of period.................................................... $ 33,903,430 $ 34,369,326 $ 2,612,445 $ 1,921,929
=============== =============== ============ ================
</TABLE>
See notes to financial statements.
33
<PAGE> 34
VISTA MUTUAL PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES -- International Equity
Portfolio ("IEP")and Global Fixed Income Portfolio ("GFIP") (the
"Portfolios") are separately registered under the Investment Company Act of
1940, as amended, as non-diversified, open end management investment
companies organized as trusts under the laws of the State of New York. Each
declaration of trust permits the Trustees to issue beneficial interests in
the respective Portfolios. The Portfolios commenced operations on December
29, 1992.
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 Portfolios:
A. Valuation of Investments -- Equity securities, purchased options and
futures are valued at the last sale price on the exchange on which they are
primarily traded, including the NASDAQ National Market. Securities for
which sale prices are not available and other over-the-counter securities
are valued at the last quoted bid price. Bonds and other fixed income
securities (other than short-term obligations), including listed issues,
are valued on the basis of valuations supplied by pricing services or by
matrix pricing systems of a major dealer in bonds. Short-term debt
securities with 61 days or more to maturity at time of purchase are valued,
through the 61st day prior to maturity, at market value based on quotations
obtained from market makers or other appropriate sources; thereafter, the
value on the 61st day is amortized on a straight-line basis over the
remaining number of days to maturity. Short-term investments with 60 days
or less to maturity at time of purchase are valued at amortized cost, which
approximates market. Portfolio securities for which there are no such
quotations or valuations are valued at fair value as determined in good
faith by or at the direction of the Trustees.
B. Repurchase Agreements -- It is the Trusts' policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government Agency
securities. All collateral is held by the Trusts' custodian bank,
subcustodian, or a bank with which the custodian bank has entered into a
subcustodian agreement, or is segregated in the Federal Reserve Book Entry
System. In connection with transactions in repurchase agreements, if the
seller defaults and the value of the collateral declines, or if the seller
enters an insolvency proceeding, realization of the collateral by the
Trusts may be delayed or limited.
C. Forward Foreign Currency Exchange Contracts -- The portfolios may
enter into forward foreign currency contracts (obligations to purchase or
sell foreign currency in the future on a date and price fixed at the time
the contracts are entered into) to hedge the portfolio against fluctuations
in the value of its assets or liabilities due to change in the value of
foreign currencies. Each day the forward contract is open, changes in the
value of the contract are recognized as unrealized gains or losses by
"marking to market". When the forward contract is closed, or the delivery
of the currency is made or taken, the portfolio records a realized gain or
loss equal to the difference between the proceeds from (or cost of) the
closing transaction and the portfolio's basis in the contract. The
portfolios are subject to off-balance sheet risk to the extent of the value
of the contracts for purchases of currency and in an unlimited amount for
sales of currency.
34
<PAGE> 35
VISTA MUTUAL PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
D. Foreign Currency Translation -- The books and records of the
Portfolios are maintained in U.S. dollars. Foreign currency amounts are
translated into U.S. dollars at the official exchange rates, or at the mean
of the current bid and asked prices, of such currencies against the U.S.
dollar as quoted by a major bank, on the following basis:
1. Market value of investment securities and other assets and
liabilities: at the closing rate of exchange at the balance sheet
date.
2. Purchases and sales of investment securities, income and expenses: at
the rates of exchange prevailing on the respective dates of such
transactions.
Although the net assets of the Portfolios are presented at the foreign
exchange rates and market values at the close of the periods, the
Portfolios do not isolate that portion of the results of operations arising
as a result of changes in the foreign exchange rates from the fluctuations
arising from changes in the market prices of securities sold during the
year. Accordingly, realized foreign currency gains (losses) are included in
the reported net realized losses on security transactions.
Reported realized foreign exchange gains or losses arise from disposition
of foreign currency, currency gains or losses realized between the trade
and settlement dates on securities transactions, and the difference between
the amounts of dividends, interest, and foreign withholding taxes recorded
on the Portfolios' books on the transaction date and the U.S. dollar
equivalent of the amounts actually received or paid. Unrealized foreign
exchange gains and losses arise from changes (due to the changes in the
exchange rate) in the value of foreign currency and other assets and
liabilities denominated in foreign currencies which are held at period end.
E. Futures Contracts -- When a portfolio 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 portfolio 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.
The IEP invested a portion of its liquid assets in long stock index futures
contracts to more fully participate in the market. Use of futures contracts
subject the Portfolio 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 Portfolio 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 Portfolio's credit risk is limited to
failure of the exchange or board of trade.
As of April 30, 1996, the Portfolios had no futures contracts.
F. Written Options -- When a portfolio writes an option on a futures
contract, an amount equal to the premium received by the portfolio is
included in the portfolio'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
35
<PAGE> 36
VISTA MUTUAL PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
closing transaction is entered into, the related liability is extinguished
and the portfolio realizes a gain (or loss if the cost of the closing
transaction exceeds the premium received when the option was written).
The IEP writes options on stock index securities futures. These options are
settled for cash and subject the Portfolio to market risk in excess of the
amounts that are reflected in the Statement of Assets and Liabilities. The
Portfolio, 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 the Portfolios had no outstanding written options.
G. 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.
H. Organization Costs -- Organization and initial registration costs
incurred in connection with establishing the IEP have been deferred and are
being amortized on a straight-line basis over a sixty month period
beginning at the commencement of operations of the Portfolio.
I. Federal Income Taxes -- The Portfolios intend to qualify as
partnerships and therefore net income and net realized gains are taxed to
the partners. The investor in the Portfolios must take into account their
proportionate share of the Portfolios' income, gains, losses, deductions,
credits and tax preference items in computing their federal income tax
liability, without regard to whether they have received any cash
distributions from the Portfolio. The Portfolios do not intend to
distribute to investors their net investment income or their net realized
gains, if any. It is intended that the Portfolios will be managed in such a
way that investors in the portfolio will be able to satisfy the
requirements of subchapter M of the Internal Revenue Code to be taxed as
regulated investment companies.
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 Portfolios. Chase is a direct wholly-owned
subsidiary of The Chase Manhattan Corporation. As Investment Adviser, Chase
supervises the investments of the Portfolios and for such services is paid
a fee. The fee is computed daily and paid monthly at an annual rate equal
to 1.00% and 0.75% of the IEP's and GFIP's average daily net assets,
respectively. For the period ended April 30, 1996, the Advisor waived fees
of $ 167,239 and $9,681 for the IEP and GFIP, respectively.
B. Custodial Fees -- Chase, as Custodian provides safekeeping services
for the Portfolios' securities. Compensation for such services are
presented in the Statement of Operations as custodian fees.
C. Administration Fee -- Pursuant to an Administration Agreement, Chase
(the "Administrator") provides certain administration services to the
Trusts. For these services and facilities, the
36
<PAGE> 37
VISTA MUTUAL PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
Administrator receives from each Portfolio a fee computed at the annual
rate equal to 0.05% of the respective Portfolio's average daily net assets.
For the period ended April 30, 1996, the Administrator waived fees of
$8,363 and $645 for the IEP and the GFIP, respectively.
D. Other -- 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.
3. INVESTMENT TRANSACTIONS -- For the six months ended April 30, 1996,
purchases and sales of investments (excluding short-term investments) were
as follows:
<TABLE>
<CAPTION>
IEP GFIP
------------ -----------
<S> <C> <C>
Purchases (excluding U.S. Government)................. $ 28,811,572 $ 2,609,293
Sales (excluding U.S. Government)..................... 31,114,317 1,314,279
Purchases of U.S. Government.......................... -- 2,045,299
Sales of U.S. Government.............................. -- 746,962
</TABLE>
The portfolio turnover rates of IEP and GFIP for this period were 91% and
107%, respectively.
37
<PAGE> 38
VISTA MUTUAL PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited) (continued)
- --------------------------------------------------------------------------------
4. OPEN FORWARD FOREIGN CURRENCY CONTRACTS -- The following forward foreign
currency contracts were open at April 30, 1996.
<TABLE>
<CAPTION>
Net
Delivery Market Unrealized
Value (Local Cost Settlement Value Gain (Loss)
Currency) (USD) Date (USD) (USD)
------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
INTERNATIONAL EQUITY PORTFOLIO
Purchases
------------------------------
Italian Lira.................. 591,788,185 $ 378,021 05/02/96 $ 378,799 $ 778
=========== =========== ==========
Sales
------------------------------
Deutsche Mark................. 720,000 $ 492,392 05/15/96 $ 470,691 $ 21,701
Deutsche Mark................. 815,000 555,650 06/26/96 534,158 21,492
Deutsche Mark................. 775,000 521,541 06/26/96 507,942 13,599
Deutsche Mark................. 1,690,000 1,133,141 06/26/96 1,107,641 25,500
Japanese Yen.................. 4,150,000 38,714 06/26/96 39,945 (1,231)
Japanese Yen.................. 117,500,000 1,094,041 06/26/96 1,130,996 (36,955)
Netherland Guilder............ 646,982 378,021 05/02/96 377,638 383
---------- ---------- -----------
Total Sales................... $ 4,213,500 $ 4,169,011 $ 44,489
=========== =========== ==========
GLOBAL FIXED INCOME PORTFOLIO
Purchases
------------------------------
Deutsche Mark................. 89,783 $ 63,331 05/31/96 $ 58,710 ($ 4,621)
Deutsche Mark................. 202,335 140,000 05/31/96 132,308 (7,692)
Deutsche Mark................. 52,123 35,479 07/10/96 34,171 (1,308)
Deutsche Mark................. 134,340 91,170 07/10/96 88,072 (3,098)
Italian Lira.................. 73,911,000 46,337 05/10/96 47,269 932
New Zealand Dollar............ 268,685 180,757 07/10/96 182,936 2,179
European Currency Unit........ 160,905 200,339 07/10/96 197,893 (2,446)
---------- ---------- -----------
Total Purchases............... $ 757,413 $ 741,359 ($ 16,054)
=========== =========== ==========
Sales
------------------------------
Deutsche Mark................. 68,850 $ 46,337 05/10/96 $ 44,966 $ 1,371
Deutsche Mark................. 143,000 96,949 07/10/96 93,750 3,199
Deutsche Mark................. 297,675 200,339 07/10/96 195,153 5,186
British Pound................. 60,000 91,170 07/10/96 90,351 819
Italian Lira.................. 100,000,000 63,331 05/31/96 63,816 (485)
Swedish Krona................. 235,840 35,479 07/10/96 34,611 868
European Currency Unit........ 145,000 180,757 07/10/96 178,332 2,425
---------- ---------- -----------
Total Sales................... $ 714,362 $ 700,979 $ 13,383
=========== =========== ===========
</TABLE>
5. RETIREMENT PLAN -- During the year ended October 31, 1995, the Trusts
adopted an unfunded noncontributory defined benefit pension plan covering
all independent directors of the Trusts who have served as an independent
director of the Trusts, or other Vista Portfolios, 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.
38
<PAGE> 39
VISTA FAMILY OF MUTUAL FUNDS
SEMI-ANNUAL REPORT FOR THE SIX MONTHS ENDED APRIL 30, 1996
SHAREHOLDER MEETING RESULTS
Vista International Equity Fund, Vista European Fund, Vista Japan Fund,
Vista Southeast Asian Fund and Vista Global Fixed Income Fund (each, a "Fund";
Vista International Equity Fund and Vista Global Fixed Income Fund, each "Feeder
Funds") 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 other than the Feeder Funds, and, in the case of the Feeder
Funds, approval or disapproval of an Interim Advisory Agreement between each
Feeder Fund's Master Portfolio and The Chase Manhattan Bank, N.A. (and the
successor entity thereto):
<TABLE>
<S> <C> <C>
Vista International Equity Fund FOR: 1,500,923
AGAINST: 10,191
ABSTAINED: 70,481
Vista Global Fixed Income Fund FOR: 185,078
AGAINST: 1,548
ABSTAINED: 1,203
Vista Southeast Asian Fund FOR: 272,674
AGAINST: 0
ABSTAINED: 0
Vista Japan Fund FOR: 236,299
AGAINST: 0
ABSTAINED: 0
Vista European Fund FOR: 248,434
AGAINST: 0
ABSTAINED: 0
</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) with
respect to each Fund and a Sub-Advisory Agreement between The Chase Manhattan
Bank, N.A. (and the successor entity thereto) and Chase Asset Management, Inc.
other than the Feeder Funds, and, in the case of the Feeder Funds, approval or
disapproval
39
<PAGE> 40
of an Investment Advisory Agreement and a Sub-Advisory Agreement between each
Feeder Fund's Master Portfolio and The Chase Manhattan Bank, N.A. (and the
successor entity thereto):
<TABLE>
<S> <C> <C>
Vista International Equity Fund FOR: 1,499,279
AGAINST: 10,769
ABSTAINED: 71,906
Vista Global Fixed Income Fund FOR: 184,889
AGAINST: 1,548
ABSTAINED: 1,393
Vista Southeast Asian Fund FOR: 272,675
AGAINST: 0
ABSTAINED: 0
Vista Japan Fund FOR: 236,299
AGAINST: 0
ABSTAINED: 0
Vista European Fund FOR: 248,434
AGAINST: 0
ABSTAINED: 0
</TABLE>
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
</TABLE>
40
<PAGE> 41
<TABLE>
<S> <C> <C>
W.D. MacCallan FOR: 65,992,011
WITHHELD: 2,182,813
</TABLE>
Ratification of Price Waterhouse LLP as independent public accountants for
each Fund, and, in the case of the Feeder Funds, for each Feeder Fund's Master
Portfolio:
<TABLE>
<S> <C> <C>
Vista International Equity Fund FOR: 1,502,202
AGAINST: 20,692
ABSTAINED: 65,580
Vista Global Fixed Income Fund FOR: 182,951
AGAINST: 1,831
ABSTAINED: 3,047
Vista Southeast Asian Fund FOR: 272,675
AGAINST: 0
ABSTAINED: 0
Vista Japan Fund FOR: 236,299
AGAINST: 0
ABSTAINED: 0
Vista European Fund FOR: 248,326
AGAINST: 107
ABSTAINED: 0
</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>
Approval or disapproval of changes to the fundamental investment objectives
of the Funds (and, in the case of each Feeder Fund, of its corresponding Master
Portfolio):
<TABLE>
<S> <C> <C>
Vista International Equity Fund FOR: 1,309,092
AGAINST: 28,032
ABSTAINED: 75,478
Vista Global Fixed Income Fund FOR: 171,279
AGAINST: 2,155
ABSTAINED: 1,440
Vista Southeast Asian Fund FOR: 270,331
AGAINST: 228
ABSTAINED: 0
Vista Japan Fund FOR: 233,577
AGAINST: 242
ABSTAINED: 0
</TABLE>
41
<PAGE> 42
<TABLE>
<S> <C> <C>
Vista European Fund FOR: 246,849
AGAINST: 100
ABSTAINED: 0
</TABLE>
Approval or disapproval of an amendment to each Fund's (and, in the case of
each Feeder Fund, to its corresponding Master Portfolio's) fundamental
investment restriction concerning borrowing:
<TABLE>
<S> <C> <C>
Vista International Equity Fund FOR: 1,293,174
AGAINST: 32,932
ABSTAINED: 86,495
Vista Global Fixed Income Fund FOR: 166,329
AGAINST: 2,489
ABSTAINED: 6,055
Vista Southeast Asian Fund FOR: 269,902
AGAINST: 657
ABSTAINED: 0
Vista Japan Fund FOR: 233,819
AGAINST: 0
ABSTAINED: 0
Vista European Fund FOR: 246,849
AGAINST: 100
ABSTAINED: 0
</TABLE>
Approval or disapproval of an amendment to each Fund's (and, in the case of
each Feeder Fund, to its corresponding Master Portfolio's) fundamental
investment restriction concerning investment for the purpose of exercising
control:
<TABLE>
<S> <C> <C>
Vista International Equity Fund FOR: 1,290,811
AGAINST: 32,470
ABSTAINED: 85,865
Vista Global Fixed Income Fund FOR: 168,349
AGAINST: 469
ABSTAINED: 6,055
Vista Southeast Asian Fund FOR: 270,127
AGAINST: 432
ABSTAINED: 0
Vista Japan Fund FOR: 233,577
AGAINST: 242
ABSTAINED: 0
Vista European Fund FOR: 246,849
AGAINST: 100
ABSTAINED: 0
</TABLE>
42
<PAGE> 43
Approval or disapproval of an amendment to each Fund's (and, in the case of
each Feeder Fund, to its corresponding Master Portfolio's) fundamental
investment restriction concerning the making of loans:
<TABLE>
<S> <C> <C>
Vista International Equity Fund FOR: 1,291,944
AGAINST: 39,578
ABSTAINED: 88,835
Vista Global Fixed Income Fund FOR: 166,174
AGAINST: 2,643
ABSTAINED: 6,055
Vista Southeast Asian Fund FOR: 269,902
AGAINST: 204
ABSTAINED: 454
Vista Japan Fund FOR: 233,819
AGAINST: 0
ABSTAINED: 0
Vista European Fund FOR: 246,849
AGAINST: 100
ABSTAINED: 0
</TABLE>
Approval or disapproval of an amendment to each Fund's (and, in the case of
each Feeder Fund, to its corresponding Master Portfolio's) fundamental
investment restriction concerning purchases of securities on margin:
<TABLE>
<S> <C> <C>
Vista International Equity Fund FOR: 1,284,189
AGAINST: 39,578
ABSTAINED: 88,835
Vista Global Fixed Income Fund FOR: 166,647
AGAINST: 2,170
ABSTAINED: 6,055
Vista Southeast Asian Fund FOR: 269,674
AGAINST: 204
ABSTAINED: 682
Vista Japan Fund FOR: 233,577
AGAINST: 0
ABSTAINED: 242
Vista European Fund FOR: 246,741
AGAINST: 207
ABSTAINED: 0
</TABLE>
43
<PAGE> 44
Approval or disapproval of an amendment to each Fund's (and, in the case of
each Feeder Fund, to its corresponding Master Portfolio's) fundamental
investment restriction concerning concentration of investment:
<TABLE>
<S> <C> <C>
Vista International Equity Fund FOR: 1,301,757
AGAINST: 27,156
ABSTAINED: 83,689
Vista Global Fixed Income Fund FOR: 166,553
AGAINST: 2,264
ABSTAINED: 6,055
Vista Southeast Asian Fund FOR: 269,674
AGAINST: 432
ABSTAINED: 454
Vista Japan Fund FOR: 233,577
AGAINST: 242
ABSTAINED: 0
Vista European Fund FOR: 246,741
AGAINST: 207
ABSTAINED: 0
</TABLE>
Approval or disapproval of an amendment to each Fund's (and, in the case of
each Feeder Fund, to its Master Portfolio's) fundamental investment restriction
concerning commodities and real estate:
<TABLE>
<S> <C> <C>
Vista International Equity Fund FOR: 1,292,227
AGAINST: 34,631
ABSTAINED: 86,014
Vista Global Fixed Income Fund FOR: 165,203
AGAINST: 3,457
ABSTAINED: 6,213
Vista Southeast Asian Fund FOR: 269,674
AGAINST: 204
ABSTAINED: 682
Vista Japan Fund FOR: 233,577
AGAINST: 0
ABSTAINED: 242
Vista European Fund FOR: 246,741
AGAINST: 207
ABSTAINED: 0
</TABLE>
44
<PAGE> 45
Approval or disapproval of an amendment to each Fund's (and, in the case of
each Feeder Fund, to its corresponding Master Portfolio's) fundamental
investment restriction regarding investments in restricted and illiquid
securities:
<TABLE>
<S> <C> <C>
Vista International Equity Fund FOR: 1,291,911
AGAINST: 30,133
ABSTAINED: 82,972
Vista Global Fixed Income Fund FOR: 167,926
AGAINST: 892
ABSTAINED: 6,055
Vista Southeast Asian Fund FOR: 269,902
AGAINST: 204
ABSTAINED: 454
Vista Japan Fund FOR: 233,819
AGAINST: 0
ABSTAINED: 0
Vista European Fund FOR: 241,750
AGAINST: 207
ABSTAINED: 4,991
</TABLE>
Approval or disapproval of an amendment to each Fund's (and, in the case of
each Feeder Fund, to its corresponding Master Portfolio's) fundamental
investment restriction concerning senior securities:
<TABLE>
<S> <C> <C>
Vista International Equity Fund FOR: 1,293,523
AGAINST: 29,732
ABSTAINED: 89,347
Vista Global Fixed Income Fund FOR: 168,517
AGAINST: 301
ABSTAINED: 6,055
Vista Southeast Asian Fund FOR: 269,674
AGAINST: 432
ABSTAINED: 454
Vista Japan Fund FOR: 233,577
AGAINST: 0
ABSTAINED: 242
Vista European Fund FOR: 246,741
AGAINST: 100
ABSTAINED: 107
</TABLE>
45
<PAGE> 46
Approval or disapproval of an amendment to each Fund's (and, in the case of
each Feeder Fund, to its corresponding Master Portfolio's) fundamental
investment restriction regarding short sales of securities:
<TABLE>
<S> <C> <C>
Vista International Equity Fund FOR: 1,271,392
AGAINST: 32,714
ABSTAINED: 79,114
Vista Global Fixed Income Fund FOR: 166,670
AGAINST: 2,114
ABSTAINED: 6,459
Vista Southeast Asian Fund FOR: 263,083
AGAINST: 0
ABSTAINED: 682
Vista Japan Fund FOR: 233,586
AGAINST: 0
ABSTAINED: 242
Vista European Fund FOR: 241,750
AGAINST: 100
ABSTAINED: 5,099
</TABLE>
Approval or disapproval of a reclassification, as nonfundamental, of each
indicated Fund's fundamental investment restriction concerning investment in
other investment companies:
<TABLE>
<S> <C> <C>
Vista Southeast Asian Fund FOR: 263,083
AGAINST: 0
ABSTAINED: 682
Vista Japan Fund FOR: 233,586
AGAINST: 242
ABSTAINED: 0
Vista European Fund FOR: 241,750
AGAINST: 100
ABSTAINED: 5099
</TABLE>
46
<PAGE> 47
Approval or disapproval of the elimination of each indicated Fund's
fundamental investment restriction concerning the mortgaging, pledging or
hypothecation of a Fund's portfolio securities:
<TABLE>
<S> <C> <C>
Vista Southeast Asian Fund FOR: 263,083
AGAINST: 0
ABSTAINED: 682
Vista Japan Fund FOR: 233,586
AGAINST: 242
ABSTAINED: 0
Vista European Fund FOR: 241,750
AGAINST: 100
ABSTAINED: 5,099
</TABLE>
Approval or disapproval of an amendment to each indicated Fund's
fundamental investment restriction concerning the underwriting of securities:
<TABLE>
<S> <C> <C>
Vista Southeast Asian Fund FOR: 263,083
AGAINST: 0
ABSTAINED: 682
Vista Japan Fund FOR: 233,829
AGAINST: 0
ABSTAINED: 0
Vista European Fund FOR: 241,750
AGAINST: 100
ABSTAINED: 5,099
</TABLE>
Approval or disapproval of a reclassification, as nonfundamental, of each
indicated Fund's fundamental investment restriction concerning securities of the
government of any member state of the Organization of Economic Cooperation and
Development:
<TABLE>
<S> <C> <C>
Vista Southeast Asian Fund FOR: 263,083
AGAINST: 0
ABSTAINED: 682
Vista Japan Fund FOR: 233,829
AGAINST: 0
ABSTAINED: 0
Vista European Fund FOR: 241,750
AGAINST: 100
ABSTAINED: 5,099
</TABLE>
Approval or disapproval of the elimination of each indicated Fund's
fundamental investment restriction with respect to physical commodities and
futures contracts:
<TABLE>
<S> <C> <C>
Vista Southeast Asian Fund FOR: 263,083
AGAINST: 0
ABSTAINED: 682
</TABLE>
47
<PAGE> 48
<TABLE>
<S> <C> <C>
Vista Japan Fund FOR: 233,586
AGAINST: 0
ABSTAINED: 242
Vista European Fund FOR: 241,750
AGAINST: 100
ABSTAINED: 5,099
</TABLE>
Approval or disapproval of a reclassification, as nonfundamental, of each
indicated Fund's fundamental investment restriction concerning securities
transactions with affiliates:
<TABLE>
<S> <C> <C>
Vista Southeast Asian Fund FOR: 263,083
AGAINST: 0
ABSTAINED: 682
Vista Japan Fund FOR: 233,586
AGAINST: 242
ABSTAINED: 0
Vista European Fund FOR: 241,750
AGAINST: 100
ABSTAINED: 5,099
</TABLE>
Approval or disapproval of a reclassification, as nonfundamental, of each
indicated Fund's fundamental investment restriction concerning securities in
which affiliates have invested:
<TABLE>
<S> <C> <C>
Vista Southeast Asian Fund FOR: 263,083
AGAINST: 0
ABSTAINED: 682
Vista Japan Fund FOR: 233,586
AGAINST: 242
ABSTAINED: 0
Vista European Fund FOR: 241,750
AGAINST: 100
ABSTAINED: 5,099
</TABLE>
Approval or disapproval of a reclassification, as nonfundamental, of each
indicated Fund's fundamental investment restriction concerning investment in
assets that involve assumption of liability:
<TABLE>
<S> <C> <C>
Vista Southeast Asian Fund FOR: 263,083
AGAINST: 0
ABSTAINED: 682
Vista Japan Fund FOR: 233,586
AGAINST: 242
ABSTAINED: 0
Vista European Fund FOR: 241,750
AGAINST: 100
ABSTAINED: 5,099
</TABLE>
48
<PAGE> 49
Approval of a new fundamental investment policy permitting each indicated
Fund's to invest all of its investable assets in another investment company:
<TABLE>
<S> <C> <C>
Vista Southeast Asian Fund FOR: 263,083
AGAINST: 0
ABSTAINED: 682
Vista Japan Fund FOR: 233,829
AGAINST: 0
ABSTAINED: 0
Vista European Fund FOR: 241,750
AGAINST: 100
ABSTAINED: 5,099
</TABLE>
49
<PAGE> 50
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 Income Fund Short-Term Bond Fund
Growth Fund of Washington(1) U.S. Government Income Fund
Growth and Income Fund U.S. Treasury Income Fund
Small Cap Equity Fund VISTA MONEY MARKET FUNDS(2)
VISTA BALANCED FUND California Tax Free Money Market Fund
Balanced Fund Federal Money Market Fund
VISTA INTERNATIONAL FUNDS Global Money Market Fund
European Fund New York Tax Free Money Market Fund
Global Fixed Income Fund Prime Money Market Fund
International Equity Fund Select Shares of Connecticut Daily Tax Free Income
Japan Fund Fund(3)
Southeast Asian Fund Select Shares of New Jersey Daily Municipal Income
VISTA TAX FREE INCOME FUNDS Fund(3)
California Intermediate Tax Tax Free Money Market Fund
Free Fund Treasury Plus Money Market Fund
New York Tax Free Income Fund 100% Treasury Securities Money Market Fund
Tax Free Income Fund U.S. Government Money Market 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> 51
VISTA
FAMILY OF MUTUAL FUNDS
MANAGED BY CHASE MANHATTAN
- --------------------------------------------------------------------------------
SEMI-ANNUAL
-------------------------------------
REPORT
VISTA SERVICE CENTER VISTA
P.O. BOX 419392 INTERNATIONAL
KANSAS CITY, MO 64179 EQUITY
FUND
INVESTMENT ADVISER,
ADMINISTRATOR, VISTA
SHAREHOLDER SERVICING AGENT EUROPEAN
AND CUSTODIAN FUND
The Chase Manhattan Bank, N.A.
VISTA
DISTRIBUTOR JAPAN
Vista Fund Distributors, Inc. FUND
TRANSFER AGENT VISTA
DST Systems, Inc. SOUTHEAST
ASIAN
LEGAL COUNSEL FUND
Simpson Thacher & Bartlett
VISTA
INDEPENDENT ACCOUNTANTS GLOBAL
Price Waterhouse LLP FIXED
INCOME
INTERNATIONAL INVESTING IS FUND
SUBJECT TO CERTAIN FACTORS SUCH
AS CURRENCY EXCHANGE RATE
VOLATILITY, POSSIBLE POLITICAL,
SOCIAL OR ECONOMIC INSTABILITY,
FOREIGN TAXATION AND DIFFERENCES
IN AUDITING AND OTHER FINANCIAL
STANDARDS.
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 funds' distributor and is
unaffiliated with Chase. The
Chase Manhattan Bank, N.A. is
the funds' adviser.
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 FOR THE 6 MONTHS ENDED
Service Center at APRIL 30, 1996
1-800-34-VISTA. (UNAUDITED)
VINTL-3-696
