<PAGE> 1
VISTA
FAMILY OF MUTUAL FUNDS
MANAGED BY CHASE MANHATTAN
- -----------------------------------------------------------------------
- - VISTA U.S. TREASURY INCOME FUND
(Class A and Class B Shares)
- - VISTA U.S. GOVERNMENT SECURITIES FUND
(Class A Shares and Class I Shares)
- - VISTA BOND FUND
(Class A Shares, Class B Shares and Class I Shares)
- - VISTA SHORT-TERM BOND FUND
(Class A Shares and Class I Shares)
- -----------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEMIANNUAL REPORT
APRIL 30, 1997
(UNAUDITED)
<PAGE> 2
CONTENTS
Chairman's Letter 1
Fund Commentaries 2
Portfolio of Investments 10
Notes to Financial Statements 21
Per Share Data 29
<PAGE> 3
- -------------------------------------------------------------------------------
Vista is in the process of redesigning your Shareholder Reports to include even
more information about your fund, its current investment strategy and how it is
performing.
Watch for the completed redesign when you receive your next Annual Report.
- -------------------------------------------------------------------------------
May 23, 1997
Dear Shareholder:
We are pleased to present this Semi-Annual Report for the following Vista Fixed
Income Funds for the six months ended April 30, 1997:
- U.S. Treasury Income Fund
- U.S. Government Securities Fund
- Bond Fund
- Short-Term Bond Fund
Inside, you'll find information on the performance of each fund over the past
six months along with a market overview and portfolio commentary.
ECONOMIC GROWTH REPORTS CONTINUE TO DRIVE FIXED INCOME MARKETS
Over the six month period, the yield on the 30-year U.S. Treasury bond rose from
6.65% to 6.95%. However, this slight change masks a high degree of volatility in
fixed income markets resulting from changing perceptions of the strength of the
U.S. economy.
As the period began, long-term interest rates were falling as the market rallied
sharply on reports of a slowing economy. The turning point in yields came in
early December 1996 in response to weaker demand and fears that the Federal
Reserve Board might raise interest rates to quell financial market speculation.
For the next several months, the market was inconsistent as investors reacted to
each new report on the economy's strength and attempted to determine the Fed's
stance. By the end of February, with the economy showing unexpectedly strong
growth, it was widely expected that the Fed would raise the Federal Funds rate
at its March meeting to cool the economy and preempt inflation, which it did. As
the reporting period ended, rates were again trending downward but remained
volatile given uncertainty over the sustainability of economic growth and future
Fed actions.
MANAGING YOUR MONEY IN A VOLATILE ENVIRONMENT
Vista's fixed income management team relied on a variety of tools to manage your
investment during the reporting period. Although interest rate trends are always
an important consideration, the main ways your management team adds value are
through analyzing the relative value of different types of fixed income
securities and carefully assessing the credit, structure and liquidity risks of
individual securities. In this way, Vista seeks to provide you with investments
that can meet your needs in any interest rate environment.
We appreciate the confidence you have placed in us and look forward to serving
your investment needs for many years to come. If you have any questions, please
call your investment professional or 1-800-34-VISTA.
Sincerely,
/s/ Fergus Reid
Fergus Reid
Chairman
- ------------------------------------------------------------------------------
INVESTMENTS IN THE FUNDS ARE NOT DEPOSITS OF, OR GUARANTEED OR ENDORSED BY, THE
CHASE MANHATTAN BANK, AND THE SHARES ARE NOT INSURED BY THE FDIC, FEDERAL
RESERVE BOARD OR ANY OTHER GOVERNMENT AGENCY. INVESTMENTS IN MUTUAL FUNDS
INVOLVE RISK, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED.
- ------------------------------------------------------------------------------
<PAGE> 4
VISTA U.S. TREASURY INCOME FUND
Vista U.S. Treasury Income Fund, which seeks to provide income through a
portfolio of high-quality U.S. Treasury Bonds, had a total return of 0.83% for
the six months ended April 30, 1997 (Class A Shares, without sales charges).
FUND TAKES ADVANTAGE OF NOVEMBER RALLY
The management team began the period expecting that moderating economic growth
would lead to lower interest rates, and thus positioned the Fund to have a
slightly-longer duration than the duration of its benchmark, the Lehman Treasury
Bond Index. This stance proved beneficial as the market rallied in November.
Although the management team ended 1996 by forecasting that the economy would
accelerate in early 1997, it nonetheless maintained the slightly-long duration
in anticipation of moderating economic growth and continued benign inflation
later
in 1997.
The slightly-long duration continued through February when rates began rising.
At this point the management team reduced duration to neutral and adopted a
barbell strategy to take advantage of points of value along the yield curve. The
barbell strategy, which involved investments at the short and long ends of the
yield curve while avoiding bonds with medium-term maturities, helped the Fund
perform well in March's rising interest rate environment.
ECONOMIC GROWTH, FED ACTIONS WILL DETERMINE BOND MARKET COURSE
As the reporting period ended, the Fund was maintaining a cautiously-neutral
benchmark duration. This defensive stance was designed to protect shareholders
from the effects of any further action by the Federal Reserve Board on
short-term interest rates. Given its expectation that economic growth will cool
down as 1997 progresses, the management team intends to extend to a
slightly-longer duration than the duration of its benchmark and take advantage
of continued market volatility caused by managing duration within an expected
narrow trading range.
2
<PAGE> 5
VISTA U.S. TREASURY INCOME FUND
AVERAGE ANNUAL TOTAL RETURNS
AS OF 4/30/97
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS A SHARES SALES CHARGE SALES CHARGE
------------ ------------
<S> <C> <C>
One Year.............................. 5.24% 0.51%
Five Years............................ 6.20% 5.23%
Since Inception (9/8/87).............. 8.57% 8.06%
</TABLE>
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS B SHARES CDSC CDSC*
------------ ------------
<S> <C> <C>
One Year.............................. 4.43% -0.53%
Five Years............................ 5.69% 3.77%
Since Inception (9/8/87).............. 8.30% 8.30%
</TABLE>
* Assumes a 5% CDSC for the one year period and a 0% CDSC for the period since
inception.
GROWTH OF $10,000
<TABLE>
<CAPTION>
LIPPER
VISTA U.S. GENERAL US LEHMAN
MEASUREMENT PERIOD TREASURY GOV'T FUNDS TREASURY
(FISCAL YEAR COVERED) INCOME FUND AVG. BOND INDEX
<S> <C> <C> <C>
09/30/87 9550.00 10000.00 10000.00
10/31/87 10208.95 10328.00 10400.00
11/30/87 10228.05 10406.49 10445.76
12/31/87 10405.68 10533.45 10571.11
01/31/88 10892.84 10883.16 10924.18
02/29/88 11033.04 10999.61 11037.80
03/31/88 10810.41 10885.22 10914.17
04/30/88 10715.37 10838.41 10853.05
05/31/88 10571.24 10769.04 10771.66
06/30/88 10875.57 10998.42 11017.25
07/31/88 10772.76 10951.13 10936.82
08/31/88 10793.05 10954.42 10956.51
09/30/88 11095.58 11173.51 11200.84
10/31/88 11301.43 11356.75 11402.45
11/30/88 11121.03 11245.45 11263.34
12/31/88 11133.56 11237.58 11308.40
01/31/89 11288.10 11375.81 11454.28
02/28/89 11135.76 11298.45 11354.62
03/31/89 11223.06 11332.34 11429.56
04/30/89 11482.71 11531.79 11676.44
05/31/89 11810.02 11797.03 11954.34
06/30/89 12207.31 12122.62 12364.38
07/31/89 12487.84 12323.86 12630.21
08/31/89 12272.72 12163.65 12411.71
09/30/89 12318.26 12215.95 12463.84
10/31/89 12616.71 12484.70 12794.13
11/30/89 12741.64 12595.82 12916.95
12/31/89 12735.98 12641.16 12937.62
01/31/90 12558.11 12462.92 12744.85
02/28/90 12555.81 12501.56 12767.79
03/31/90 12546.57 12510.31 12763.96
04/30/90 12414.01 12372.69 12655.47
05/31/90 12759.50 12719.13 13003.49
06/30/90 12947.00 12915.00 13208.95
07/31/90 13146.37 13084.19 13376.70
08/31/90 12982.63 12897.09 13184.08
09/30/90 13098.14 13001.55 13310.64
10/31/90 13335.63 13165.37 13530.27
11/30/90 13607.71 13478.71 13829.29
12/31/90 13825.09 13691.67 14045.02
01/31/91 13979.66 13842.28 14195.31
02/28/91 14053.11 13914.26 14270.54
03/31/91 14086.93 13981.05 14341.89
04/30/91 14268.53 14104.08 14499.65
05/31/91 14328.20 14164.73 14553.30
06/30/91 14305.19 14137.82 14531.47
07/31/91 14464.71 14330.09 14701.49
08/31/91 14779.38 14643.92 15042.57
09/30/91 15079.14 14941.19 15359.96
10/31/91 15211.58 15075.66 15496.67
11/30/91 15327.67 15179.69 15651.63
12/31/91 15870.45 15686.69 16191.62
01/31/92 15598.07 15402.76 15932.55
02/29/92 15642.83 15492.09 15994.69
03/31/92 15532.36 15392.94 15898.72
04/30/92 15633.90 15472.99 15998.88
05/31/92 15904.36 15763.88 16293.26
06/30/92 16144.45 15968.81 16529.51
07/31/92 16539.34 16310.54 16951.01
08/31/92 16725.91 16457.34 17112.05
09/30/92 16996.69 16635.08 17361.89
10/31/92 16640.88 16400.52 17106.67
11/30/92 16558.24 16418.56 17067.32
12/31/92 16801.54 16686.19 17360.88
01/31/93 17175.89 16998.22 17734.14
02/28/93 17513.48 17299.09 18090.59
03/31/93 17577.46 17357.90 18150.29
04/30/93 17710.60 17458.58 18291.86
05/31/93 17664.00 17470.80 18269.91
06/30/93 18067.44 17820.22 18679.16
07/31/93 18153.98 17934.26 18789.37
08/31/93 18576.56 18269.64 19208.37
09/30/93 18651.66 18309.83 19283.28
10/31/93 18696.29 18372.08 19354.63
11/30/93 18495.42 18160.80 19141.73
12/31/93 18535.76 18244.34 19216.38
01/31/94 18808.49 18476.05 19481.57
02/28/94 18368.93 18100.98 19062.72
03/31/94 17983.65 17652.08 18635.71
04/30/94 17808.63 17463.20 18490.35
05/31/94 17766.69 17409.06 18468.16
06/30/94 17706.71 17330.72 18427.53
07/31/94 18037.39 17621.88 18762.91
08/31/94 18032.48 17614.83 18766.67
09/30/94 17701.47 17334.76 18503.93
10/31/94 17653.45 17284.48 18492.83
11/30/94 17601.82 17241.27 18455.85
12/31/94 17709.01 17370.58 18568.43
01/31/95 18049.37 17681.52 18911.94
02/28/95 18434.09 18070.51 19314.77
03/31/95 18538.01 18162.67 19436.45
04/30/95 18757.32 18382.44 19691.07
05/31/95 19477.29 19082.81 20486.59
06/30/95 19626.19 19201.12 20648.43
07/31/95 19551.37 19108.96 20572.03
08/31/95 19752.48 19342.09 20810.67
09/30/95 19935.24 19537.44 21010.45
10/31/95 20228.36 19816.83 21336.11
11/30/95 20517.59 20108.13 21666.82
12/31/95 20813.50 20399.70 21976.66
01/31/96 20931.71 20491.50 22115.11
02/29/96 20449.20 20034.54 21661.75
03/31/96 20243.28 19852.23 21475.46
04/30/96 20070.47 19701.35 21338.02
05/31/96 19992.58 19630.42 21303.87
06/30/96 20220.23 19860.10 21574.43
07/31/96 20286.28 19895.85 21626.21
08/31/96 20185.20 19832.18 21580.80
09/30/96 20507.27 20163.38 21934.72
10/31/96 20948.87 20604.96 22417.29
11/30/96 21312.33 20967.60 22805.11
12/31/96 21076.28 20734.86 22570.21
01/31/97 21065.36 20763.89 22592.78
02/28/97 21063.98 20788.81 22619.89
03/31/97 20844.90 20520.63 22375.60
04/30/97 21122.58 20824.34 22697.81
</TABLE>
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 Vista U.S. Treasury Income Fund, the Lipper General U.S. Government
Funds Average and the Lehman Treasury Bond Index from September 30, 1987 to
April 30, 1997. The Fund's performance includes a 4.50% sales charge and assumes
the reinvestment of all dividends and capital gains. Also, certain fees were
waived during the period. Had they not been waived, total returns would have
been lower. The Fund commenced operations on 9/8/87. Class B Shares were
introduced on 11/4/93. Investors should note that information presented for
Class B prior to their introduction is based upon historical expenses of the
predecessor Class A Shares, which are lower than the actual expenses of the
Class B Shares. Additionally, annualized figures have been restated to reflect
the maximum 5% contingent deferred sales charge that applies to the Fund's B
Shares.
The Lipper General U.S. Government Funds Average represents the average
performance of a universe of 167 actively managed U.S. government income funds.
Lipper is an independent mutual fund performance monitor whose results are based
on total return and do not reflect a sales charge.
The Lehman Treasury Bond Index is a replica (or model) of the U.S. government
treasury securities market. The index is unmanaged and reflects the reinvestment
of dividends. An individual cannot invest in the index.
3
<PAGE> 6
VISTA U.S. GOVERNMENT SECURITIES FUND
Vista U.S. Government Securities Fund, which seeks income and capital
appreciation by investing in a portfolio of high-quality, long-term U.S.
government and agency bonds, provided shareholders with a total return of 1.21%
for the six months ended April 30, 1997 (Class A Shares, without sales charges).
MANAGEMENT TEAM PURSUES ACTIVE MANAGEMENT IN A VOLATILE ENVIRONMENT
In seeking to provide you with favorable returns on your investment in any
interest rate environment, the management team's most important tool is its
relative value analysis. This analysis seeks to determine which
securities -- either U.S. Treasuries or mortgage-backed issues -- are likely to
outperform in a given environment. Further, the relative value analysis guides
the management team in selecting the duration of individual securities based on
different points of value along the yield curve.
This relative value analysis led the management team to begin the period with an
overweight allocation to mortgage-backed securities. These securities' higher
yields, combined with a neutral portfolio duration, left the Fund well
positioned for November's moderate rally.
FUND SHIFTS TO MORTGAGES IN LATE 1996
At the end of 1996, the relative value analysis pointed the management team in
the direction of mortgage-backed securities. This helped the Fund perform well
as markets fluctuated in early 1997 and, subsequently, as rates began a moderate
uptrend in February. At that point, the management team reduced duration to
neutral and adopted a barbell strategy that sought to take advantage of stronger
relative values at the short and long ends of the yield curve.
As the reporting period ended, the Fund took profits on some of its mortgage
securities but maintained slightly-overweight allocation to the sector. By early
May, the management team was considering a more aggressive move back to
mortgages given that the market had begun to exhibit signs of settling yet again
into a trading range. In such an environment, the extra yield provided by
mortgage-backed securities tends to help overall performance.
4
<PAGE> 7
VISTA U.S. GOVERNMENT SECURITIES FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF 4/30/97
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS A SHARES SALES CHARGE SALES CHARGE
------------ ------------
<S> <C> <C>
One Year.............................. 5.79% 1.03%
Since Inception (02/19/93)............ 4.89% 3.77%
</TABLE>
<TABLE>
<CAPTION>
CLASS I SHARES
<S> <C> <C>
One Year.............................. 6.17%
Since Inception (02/19/93)............ 4.98%
</TABLE>
GROWTH OF $10,000
<TABLE>
<CAPTION>
MERRILL
MEASUREMENT PERIOD VISTA US LIPPER LYNCH MERRILL
(FISCAL YEAR GOV'T GENERAL US GOV'T LYNCH 50%
COVERED) SECURITIES-I GOV'T AVG. INDEX GOVT/50%MTGE
<S> <C> <C> <C> <C>
02/28/93 10000.00 10000.00 10000.00 10000.00
03/31/93 10026.00 10034.00 10048.00 10035.30
04/30/93 10100.90 10092.20 10119.34 10113.47
05/31/93 10086.56 10099.26 10134.52 10104.88
06/30/93 10282.94 10297.21 10292.62 10323.04
07/31/93 10331.30 10362.08 10348.20 10384.46
08/31/93 10561.49 10554.81 10483.76 10615.31
09/30/93 10609.18 10578.03 10512.07 10663.08
10/31/93 10636.43 10612.94 10550.96 10698.48
11/30/93 10540.31 10493.02 10492.93 10583.79
12/31/93 10571.80 10537.09 10557.99 10624.44
02/31/94 10705.09 10667.75 10683.63 10771.16
02/28/94 10481.85 10455.46 10526.58 10537.75
03/31/94 10262.22 10199.30 10284.47 10318.56
04/30/94 10168.32 10097.31 10199.10 10225.90
05/31/94 10140.32 10071.05 10213.38 10218.85
06/30/94 10111.13 10026.74 10191.94 10201.88
07/31/94 10274.04 10195.19 10380.49 10375.83
08/31/94 10277.53 10193.15 10400.21 10385.68
09/30/94 10129.68 10035.16 10258.77 10243.71
10/31/94 10112.56 10008.06 10252.61 10235.52
11/30/94 10074.64 9986.04 10225.95 10209.41
12/31/94 10137.97 10060.94 10302.65 10281.29
01/31/95 10300.86 10241.03 10510.76 10470.57
02/28/95 10527.77 10472.48 10760.92 10694.43
03/31/95 10549.22 10525.89 10819.03 11369.25
04/30/95 10680.55 10654.30 10968.33 11516.36
05/31/95 11125.50 11067.69 11364.29 11979.44
06/30/95 11199.15 11136.31 11441.56 12075.63
07/31/95 11137.80 11083.97 11653.23 12036.87
08/31/95 11270.17 11221.41 11675.37 12171.44
09/30/95 11378.76 11338.11 11516.59 12286.58
10/31/95 11556.70 11500.25 11523.50 12479.36
11/30/95 11769.29 11670.45 11493.54 12669.17
12/31/95 11948.88 11839.67 11579.74 12849.83
01/31/96 11989.70 11894.14 11659.64 12930.66
02/29/96 11690.03 11627.71 11492.91 12673.47
03/31/96 11554.80 11524.22 11428.55 12571.95
04/30/96 11465.00 11437.79 11374.83 12490.86
05/31/96 11437.76 11397.76 11347.53 12472.13
06/30/96 11583.37 11531.11 11488.24 12626.28
07/31/96 11589.28 11551.87 11525.00 12655.45
08/31/96 11570.13 11514.90 11514.98 12628.24
09/30/96 11768.78 11709.50 11705.44 12835.72
10/31/96 12015.17 11965.94 11948.56 13114.77
11/30/96 12216.55 12176.54 12140.81 13339.03
12/31/96 12093.14 12041.38 12051.94 13210.98
01/31/97 12110.73 12058.24 12100.15 13228.15
02/28/97 12127.60 12072.71 12125.56 13237.41
03/31/97 12011.01 11916.97 12009.15 13110.33
04/30/97 12172.19 12093.34 12193.61 13299.12
</TABLE>
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 I
shares of Vista U.S. Government Securities Fund, the Lipper General U.S.
Government Funds Average and the Merrill Lynch Government Index and a composite
of the Merrill Lynch Government and Corporate Indexes from February 28, 1993 to
April 30, 1997. The Fund's performance does not include a sales charge and
assumes the reinvestment of all dividends and capital gains. The Fund commenced
operations on 2/19/93. Class A Shares were introduced on 5/6/96. Investors
should note that information presented for Class A Shares prior to their
introduction is based upon historical expenses of the predecessor Class I
Shares, which are lower than the actual expenses of the Class A Shares.
Additionally, annualized figures have been restated to reflect the initial 4.50%
sales charge that applies to the Fund's A Shares. Class I shares have a
$1,000,000 minimum initial deposit and carry no sales charge. Also, certain fees
were waived during the period. Had they not been waived, total returns would
have been lower.
The Lipper General U.S. Government Funds Average represents the performance of a
universe of 167 actively managed U.S. government income mutual funds. Lipper is
an independent mutual fund performance monitor whose results are based on total
return and do not reflect a sales charge.
The Merrill Lynch (ML) Government Index consists of bonds with a maturity
greater than or equal to one year. The ML Mortgage Master Index consists of
fixed-rate corporate interest-bearing bonds. The indexes are unmanaged and
reflect reinvestment of dividends. An individual cannot invest in an index.
5
<PAGE> 8
VISTA BOND FUND
Vista Bond Fund, which seeks to provide a high level of current income through a
portfolio of investment-grade government, asset-backed and corporate bonds, had
a total return of 1.30% for the six months ended April 30, 1997 (Class A shares,
without sales charges).
RELATIVE VALUE ANALYSIS KEY TO MANAGEMENT DECISIONS
In seeking to provide you with favorable returns on your investment in any
interest rate environment, the management team's most important tool is its
relative value analysis. This analysis seeks to determine which market
sector -- U.S. Treasuries, mortgage-backed or corporate securities -- is likely
to outperform in a given environment. The relative value analysis also guides
the management team in selecting the duration of the portfolio based on
different points of value along the yield curve. Additionally, the management
team carefully analyzes each potential investment for credit, structure and
liquidity risks, and uses this analysis to determine whether each security is
over- or under-valued in the market.
This relative value analysis led the management team to begin the period with an
overweight allocation to mortgage-backed securities. These securities' higher
yields, combined with a neutral portfolio duration, left the Fund well
positioned for November's moderate rally.
FUND SHIFTS EMPHASIS TO MORTGAGES AND SELECTED CORPORATE SECURITIES IN LATE 1996
At the end of 1996, the relative value analysis pointed the management team in
the direction of mortgage-backed securities as well as selected corporate
securities. This helped the Fund perform well as mortgages and corporates were
the top-performing sectors in early 1997 and, subsequently, as rates began a
moderate uptrend in February. At that point, the management team reduced
duration to neutral and adopted a barbell strategy that sought to take advantage
of stronger relative values at the short and long ends of the yield curve.
As the reporting period ended, the Fund took profits on some of its
mortgage-backed securities but maintained a relatively-neutral sector
allocation. By early May, the management team was considering a more aggressive
move back into mortgage-backed and corporate securities given that the market
had begun to exhibit signs of settling yet again into a trading range. In such
an environment, the extra yield provided by these sectors tends to help overall
performance.
6
<PAGE> 9
VISTA BOND FUND
AVERAGE ANNUAL TOTAL RETURNS
AS OF 4/30/97
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS A SHARES SALES CHARGE SALES CHARGE
------------ ------------
<S> <C> <C>
One Year.................................. 6.19% 1.42%
Five Years................................ 7.11% 6.13%
Since Inception (11/30/90)................ 7.89% 7.11%
</TABLE>
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS B SHARES CDSC CDSC*
------------ ------------
<S> <C> <C>
One Year.................................. 6.21% 1.25%
Five Years................................ 7.11% 5.13%
Since Inception (11/30/90)................ 7.89% 7.89%
</TABLE>
<TABLE>
<CAPTION>
CLASS I SHARES
<S> <C> <C>
One Year.................................. 6.92%
Five Years................................ 7.25%
Since Inception (11/30/90)................ 8.00%
* Assumes a 5% CDSC for the one year period and a 0% CDSC for the period
since inception.
</TABLE>
GROWTH OF $10,000
<TABLE>
<CAPTION>
LIPPER CORP. LEHMAN
MEASUREMENT PERIOD VISTA BOND BBB FUNDS AGGREGATE
(FISCAL YEAR COVERED) FUND AVG. INDEX
<S> <C> <C> <C>
11/30/90 10000.00 10000.00 10000.00
12/31/90 10100.00 10150.00 10156.00
01/31/91 10191.20 10260.64 10281.93
02/28/91 10286.81 10437.12 10369.33
03/31/91 10337.93 10559.23 10438.81
04/30/91 10465.90 10716.56 10553.63
05/31/91 10505.01 10781.94 10614.84
06/30/91 10482.43 10773.31 10609.54
07/31/91 10612.55 10920.90 10757.01
08/31/91 10849.71 11181.91 10989.36
09/30/91 11063.94 11410.03 11212.44
10/31/91 11161.57 11530.97 11336.90
11/30/91 11272.67 11622.07 11441.20
12/31/91 11649.76 12010.24 11781.01
01/31/92 11502.90 11912.96 11620.78
02/29/92 11540.05 11995.16 11696.32
03/31/92 11485.60 11962.77 11630.82
04/30/92 11544.80 12017.80 11714.56
05/31/92 11745.03 12262.96 11935.97
06/30/92 11915.59 12438.33 12100.68
07/31/92 12232.81 12787.84 12347.54
08/31/92 12326.74 12902.93 12472.25
09/30/92 12512.16 13059.06 12620.67
10/31/92 12316.13 12814.85 12452.81
11/30/92 12282.94 12852.02 12457.79
12/31/92 12480.56 13075.64 12653.38
01/31/93 12740.67 13371.15 12896.32
02/28/93 12995.24 13692.06 13122.01
03/31/93 13043.59 13793.38 13177.12
04/30/93 13133.71 13889.93 13269.36
05/31/93 13128.94 13935.77 13286.61
06/30/93 13399.67 14274.41 13527.10
07/31/93 13476.72 14417.15 13604.21
08/31/93 13763.43 14763.17 13842.28
09/30/93 13829.09 14808.93 13879.65
10/31/93 13871.85 14939.25 13931.01
11/30/93 13717.17 14774.92 13812.59
12/31/93 13776.38 14869.48 13887.18
01/31/94 13969.97 15122.26 14074.66
02/28/94 13671.25 14797.13 13829.76
03/31/94 13388.74 14363.57 13488.16
04/30/94 13280.97 14182.59 13380.26
05/31/94 13261.85 14140.05 13378.92
06/30/94 13242.63 14083.49 13349.49
07/31/94 13470.64 14332.76 13615.14
08/31/94 13492.66 14377.19 13631.48
09/30/94 13305.12 14155.79 13431.10
10/31/94 13275.00 14113.32 13419.01
11/30/94 13244.71 14083.68 13389.49
12/31/94 13340.07 14166.77 13481.88
01/31/95 13589.78 14396.28 13748.82
02/28/95 13877.15 14738.91 14076.04
03/31/95 13968.95 14845.03 14161.90
04/30/95 14154.93 15097.39 14360.17
05/31/95 14739.14 15785.83 14915.91
06/30/95 14859.91 15904.23 15024.79
07/31/95 14788.16 15829.48 14991.74
08/31/95 14965.73 16060.59 15173.14
09/30/95 15128.92 16243.68 15320.32
10/31/95 15377.10 16469.47 15519.48
11/30/95 15612.47 16744.51 15752.28
12/31/95 15858.99 17020.79 15972.81
01/31/96 15943.43 17124.62 16078.23
02/29/96 15579.15 16717.05 15798.47
03/31/96 15440.20 16576.63 15687.88
04/30/96 15328.40 16440.70 15600.03
05/31/96 15278.42 16416.04 15568.83
06/30/96 15460.59 16614.67 15777.45
07/31/96 15514.48 16646.24 15820.05
08/31/96 15510.09 16619.61 15793.15
09/30/96 15798.07 16947.01 16067.95
10/31/96 16130.94 17353.74 16424.66
11/30/96 16428.56 17726.85 16705.52
12/31/96 16255.17 17538.94 16550.16
01/31/97 16302.09 17575.77 16601.47
02/28/97 16347.77 17651.35 16642.97
03/31/97 16161.97 17393.64 16458.23
04/30/97 16388.81 17645.85 16705.11
</TABLE>
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 I
shares of Vista Bond Fund, the Lipper Corporate Debt BBB-Rated Funds Average and
the Lehman Aggregate Bond Index from November 30, 1990 to April 30, 1997. The
Fund's performance assumes reinvestment of all dividends and capital gains and
does not include a sales charge. Class I shares have a $1,000,000 minimum
initial deposit and carry no sales charge. The Fund commenced operations on
11/30/90. Class A and B Shares were introduced on 5/6/96. Investors should note
that information presented for Class A and Class B Shares prior to their
introduction is based upon historical expenses of the predecessor Class I
Shares, which are lower than the actual expenses of the Class A Shares and Class
B Shares. Additionally, annualized figures have been restated to reflect the
maximum initial 4.50% sales charge on Class A Shares and the maximum 5%
contingent deferred sales charge that applies to the Fund's B Shares. Also,
certain fees were waived during the period. Had they not been waived, total
returns would have been lower.
The Lipper Corporate Debt BBB-Rated Funds Average represents the average
performance of a universe of 91 actively managed BBB-rated corporate debt funds.
Lipper is an independent mutual fund performance monitor whose results are based
on total return and do not reflect a sales charge.
The Lehman Aggregate Bond Index is composed of the Lehman Government/Corporate
Index and the Mortgage-Backed Securities Index and includes U.S. Treasury
issues, agency issues, corporate bond issues and mortgage-backed securities. The
index is unmanaged and reflects the reinvestment of dividends. An individual
cannot invest in the index.
7
<PAGE> 10
VISTA SHORT-TERM BOND FUND
Vista Short-Term Bond Fund, which seeks current income by investing in a
portfolio of short-term corporate and government securities, provided
shareholders with a total return of 2.13% for the six months ended April 30,
1997 (Class A shares, without sales charges).
MANAGEMENT TEAM TAKES ADVANTAGE OF FUND'S FLEXIBILITY
In seeking to provide you with relative price stability as well as high current
income on your investment, the management team has the flexibility to choose
from a wide range of short-term securities and to adjust the fund's duration to
take advantage of different points of value along the short-term yield curve. In
seeking to do so, the management team relies on its relative value analysis and
ability to analyze the credit, structural and liquidity characteristics of
individual fixed-income securities.
Using these tools, the management team began the period with an overweight
allocation to asset-backed securities, which tend to perform better during
market rallies. These securities' higher yields, combined with a neutral
portfolio duration, left the Fund well positioned for November's moderate rally.
FUND CUTS DURATION AS ECONOMIC GROWTH STRENGTHENS
At the end of 1996, the relative value analysis pointed the management team in
the direction of mortgage-backed securities as well as selected corporate
securities, whose higher yields are often beneficial in neutral-to-slightly
rising interest rate environments. This helped the Fund perform well during the
fluctuating markets in early 1997 and, subsequently, as rates began a moderate
uptrend in February. At that point, the management team also reduced duration to
neutral and moved more into the two-year maturities to take advantage of the
steepness at the short end of the yield curve.
As the reporting period ended, the Fund was maintaining a relatively-neutral
duration while continuing to emphasize mortgage-backed and corporate securities.
Given the management team's ability to analyze different types of risks, the
Fund will continue to use mortgage-backed, asset-backed and corporate securities
to enhance yield while maintaining a strong focus on relative stability of
principal.
8
<PAGE> 11
VISTA SHORT-TERM BOND FUND
AVERAGE ANNUAL TOTAL RETURNS
AS OF 4/30/97
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS A SHARES SALES CHARGE SALES CHARGE
------------- -------------
<S> <C> <C>
One Year............................. 5.51% 3.92%
Five Years........................... 5.12% 4.80%
Since Inception (11/30/90)........... 5.69% 5.44%
</TABLE>
<TABLE>
<CAPTION>
CLASS I SHARES
<S> <C> <C>
One Year............................. 6.02%
Five Years........................... 5.22%
Since Inception (11/30/90)........... 5.77%
</TABLE>
GROWTH OF $10,000
<TABLE>
<CAPTION>
VISTA SHORT- LIPPER SHORT LEHMAN 1-3
MEASUREMENT PERIOD TERM BOND INV. GRADE YR GOVT
(FISCAL YEAR COVERED) FUND DEBT AVG. INDEX
<S> <C> <C> <C>
11/30/90 10000.00 10000.00 10000.00
12/31/90 10070.00 10097.00 10118.00
01/31/91 10131.00 10161.62 10213.11
02/28/91 10211.81 10253.08 10278.47
03/31/91 10262.66 10352.53 10347.34
04/30/91 10344.38 10458.13 10446.67
05/31/91 10403.88 10535.52 10509.35
06/30/91 10438.73 10567.12 10548.24
07/31/91 10517.49 10654.83 10638.95
08/31/91 10616.48 10793.34 10784.71
09/30/91 10693.91 10908.83 10899.02
10/31/91 10782.29 11019.01 11016.73
11/30/91 10860.60 11114.88 11130.21
12/31/91 10989.26 11267.15 11299.39
01/31/92 10981.05 11255.88 11284.70
02/29/92 11016.52 11297.53 11318.55
03/31/92 11026.27 11295.27 11315.15
04/30/92 11115.32 11374.34 11418.12
05/31/92 11191.74 11480.12 11523.17
06/30/92 11280.62 11581.14 11639.55
07/31/92 11371.01 11705.06 11773.41
08/31/92 11437.47 11784.66 11868.77
09/30/92 11516.58 11875.40 11980.34
10/31/92 11469.51 11804.15 11912.05
11/30/92 11476.26 11795.88 11898.95
12/31/92 11543.23 11885.53 12004.85
01/31/93 11643.02 12009.14 12130.90
02/28/93 11704.54 12117.22 12227.95
03/31/93 11746.87 12158.42 12265.85
04/30/93 11798.59 12225.29 12340.68
05/31/93 11792.82 12227.74 12311.06
06/30/93 11855.44 12315.78 12403.39
07/31/93 11883.39 12361.35 12430.68
08/31/93 11947.72 12465.18 12533.85
09/30/93 11986.48 12507.56 12573.96
10/31/93 12012.44 12545.09 12601.62
11/30/93 12034.95 12541.32 12604.14
12/31/93 12067.06 12594.00 12654.56
01/31/94 12121.96 12678.38 12734.28
02/28/94 12094.41 12607.38 12656.61
03/31/94 12078.78 12526.69 12592.06
04/30/94 12064.30 12480.34 12544.21
05/31/94 12098.22 12485.33 12560.51
06/30/94 12145.64 12497.82 12591.92
07/31/94 12207.89 12590.30 12705.24
08/31/94 12245.89 12630.59 12747.17
09/30/94 12259.43 12615.43 12717.85
10/31/94 12297.74 12636.88 12747.10
11/30/94 12298.98 12611.61 12693.56
12/31/94 12353.81 12612.87 12717.68
01/31/95 12457.69 12728.91 12890.64
02/28/95 12573.34 12876.56 13065.96
03/31/95 12644.04 12943.52 13139.12
04/30/95 12715.06 13056.13 13256.06
05/31/95 12864.12 13270.25 13482.74
06/30/95 12935.80 13340.58 13555.55
07/31/95 12996.24 13377.93 13609.77
08/31/95 13056.96 13462.22 13691.43
09/30/95 13116.66 13534.91 13758.52
10/31/95 13204.02 13637.78 13872.71
11/30/95 13290.47 13746.88 13990.63
12/31/95 13369.43 13848.61 14096.96
01/31/96 13461.99 13952.47 14216.78
02/29/96 13456.44 13899.45 14161.34
03/31/96 13488.50 13886.94 14150.01
04/30/96 13522.03 13892.50 14164.16
05/31/96 13558.13 13914.72 14195.32
06/30/96 13640.40 14010.74 14298.95
07/31/96 13701.47 14063.98 14354.71
08/31/96 13741.87 14106.17 14407.82
09/30/96 13862.55 14233.12 14538.94
10/31/96 14009.31 14379.73 14703.23
11/30/96 14120.27 14494.76 14812.03
12/31/96 14120.58 14493.31 14814.99
01/31/97 14175.94 14557.08 14886.10
02/28/97 14213.15 14599.30 14921.83
03/31/97 14205.03 14583.24 14909.89
04/30/97 14336.30 14694.07 15032.15
</TABLE>
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 I
shares of Vista Short-Term Bond Fund, the Lipper Short Investment Grade Debt
Funds Average and the Lehman Brothers 1-3 year Government Bond Index from
November 30, 1990 to April 30, 1997. The Fund's performance assumes reinvestment
of all dividends and capital gains and does not include a sales charge. The Fund
commenced operations on 11/30/90. Class A Shares were introduced on 5/6/96.
Investors should note that information presented for Class A Shares prior to
their introduction is based upon historical expenses of the predecessor Class I
Shares, which are lower than the actual expenses of the Class A Shares.
Additionally, annualized figures have been restated to reflect the maximum 1.50%
sales charge that applies to the Fund's A Shares. Class I Shares have a
$1,000,000 minimum initial deposit and carry no sales charges. Also, certain
fees were waived during the period. Had they not been waived, total returns
would have been lower.
The Lipper Short-Term Investment Grade Debt Funds Average represents the average
performance of a universe of 96 actively managed short investment grade debt
funds. Lipper is an independent mutual fund performance monitor whose results
are based on total return and do not reflect a sales charge.
The Lehman Brothers 1-3 Year Government Bond Index is composed of bonds covered
by the Government Bond Index with maturities of one to three years. The index is
unmanaged and reflects the reinvestment of dividends. An individual cannot
invest directly in the index.
9
<PAGE> 12
VISTA U.S. TREASURY INCOME FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- 98.4%
- ----------------------------------------------------------------------------------------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS -- 98.4%
-----------------------------------
U.S. Treasury Notes & Bonds,
$ 8,000,000 7.375%, 11/15/97 $ 8,063,760
3,750,000 6.125%, 03/31/98 3,757,013
8,500,000 6.000%, 05/31/98 8,496,005
12,000,000 6.375%, 04/30/99 12,022,440
9,632,000 9.125%, 05/15/99 10,145,193
8,500,000 5.625%, 02/28/01 8,247,635
5,500,000 6.250%, 01/31/02 5,426,960
6,000,000 7.250%, 08/15/04 6,193,140
7,500,000 6.500%, 05/15/05 7,395,675
3,900,000 10.750%, 08/15/05 4,876,833
9,050,000 6.875%, 05/15/06 9,126,382
18,200,000 8.500%, 02/15/20 21,148,946
1,200,000 7.125%, 02/15/23 1,210,692
- ----------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 98.4% $106,110,674
(COST $108,018,920)
- -----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
10
<PAGE> 13
VISTA U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- 101.0%
- -----------------------------------------------------------------------------------------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS -- 18.5%
-------------------------------------------
$ 2,700,000 U.S. Treasury Note, 7.500%, 11/15/01 $ 2,797,443
8,800,000 U.S. Treasury Bond, 7.250%, 08/15/22 8,993,864
-----------
TOTAL U.S. TREASURY OBLIGATIONS (COST $11,675,393) 11,791,307
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 22.8%
-------------------------------------------
2,000,000 Federal National Mortgage Association, Global Bond, 2,079,060
8.500%, 02/01/05
1,767,465 Federal National Mortgage Association, Pool #100144, 2,033,137
11.500%, 03/04/19
Government National Mortgage Association,
3,929,845 Pool #393178, 7.500%, 11/15/25 3,900,371
2,839,465 Pool #780047, 9.000%, 12/15/17 3,023,519
1,175,029 Pool #780201, 9.000%, 12/15/17 1,251,194
2,205,434 Pool #780508, 8.000%, 11/15/24 2,250,205
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $14,548,743) 14,537,486
-----------
MORTGAGE BACKED SECURITIES -- 59.7%
-----------------------------------
MORTGAGE-BACKED PASS THRU SECURITIES -- 8.2%
5,200,000 Federal National Mortgage Association, 30 Year, TBA, 5,268,276
8.000%, 05/15/27 -----------
(COST $5,222,750)
COLLATERALIZED MORTGAGE OBLIGATIONS -- 51.5%
Federal Home Loan Mortgage Corp.
6,000,000 Ser. 1206, Class GA, 7.000%, 03/15/18 6,020,580
2,800,000 Ser. 1761, Class G, 8.000%, 06/15/21 2,869,104
Federal National Mortgage Association,
3,212,036 Ser. 1989-76, Class D, 9.000%, 03/25/19 3,309,392
3,715,099 Ser. 1989-81, Class E, 9.000%, 03/25/19 3,863,703
4,280,158 Ser. 1991-155, Class PD, 7.750%, 09/25/19 4,328,310
4,300,000 Ser. 1992-163, Class FE, 6.406%, 09/25/22 4,365,833
1,650,000 Ser. 1994-36, Class N, 6.500%, 03/25/24 1,475,199
3,955,851 Ser. 1997-17, Class A, 7.250%, 03/31/04 3,946,990
2,500,000 Government National Mortgage Association, Ser. 1996, 2,720,300
Class 26E, 9.000%, 12/16/26
-----------
(COST $32,944,588) 32,899,411
-----------
TOTAL MORTGAGE-BACKED SECURITIES 38,167,687
(COST $38,167,338)
- -----------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS 64,496,480
(COST $64,391,473)
- -----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
11
<PAGE> 14
VISTA U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 10.3%
- ----------------------------------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT -- 10.3%
--------------------------------
$ 6,577,000 Aubrey G. Lanston, 5.25%, due 05/01/97, (Dated 04/30/97, $ 6,577,000
Proceeds $6,577,959, secured by U.S. Treasury Note,
$6,602,000 at 5.25%, 05/01/97; Market $6,731,190) (COST
$6,577,000)
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 111.3% $ 71,073,480
(COST $70,968,473)
- -----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
12
<PAGE> 15
VISTA BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- 97.3%
- ----------------------------------------------------------------------------------------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS -- 15.9%
--------------------------------------------
U.S. Treasury Notes & Bonds,
$ 1,700,000 8.250%, 07/15/98 $ 1,742,500
375,000 8.000%, 05/15/01 394,335
750,000 10.750%, 02/15/03 896,715
400,000 8.750%, 08/15/20 476,812
------------
TOTAL U.S. TREASURY OBLIGATIONS (COST $3,538,790) 3,510,362
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 10.8%
--------------------------------------------
1,400,000 Federal Home Loan Mortgage Corp., 7.675%, 01/30/07 1,382,934
Government National Mortgage Association,
709,892 Pool #780047, 9.000%, 12/15/17 755,907
245,720 Pool #780325, 8.500%, 11/15/09 255,418
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $2,421,606) 2,394,259
------------
CORPORATE NOTES & BONDS -- 38.3%
--------------------------------------------
AIRLINES -- 6.8%
1,500,000 Continental Airlines, 7.420%, 04/01/07 # 1,497,000
------------
BANKING -- 1.7%
400,000 Bankers Trust Capital Trust A, 7.900%, 01/15/27 375,000
------------
COMPUTERS/COMPUTER HARDWARE -- 2.5%
600,000 International Business Machines Corp., 7.125%, 12/01/96 551,250
------------
CONSUMER PRODUCTS -- 1.8%
400,000 Philip Morris Corp., 9.250%, 12/01/97 406,744
------------
FINANCIAL SERVICES -- 10.0%
280,000 Corp Andina de Fomento, Yankee (Venezuela), 7.375%, 283,354
07/21/00
413,473 Hero Asia BVI Co., Ltd., Yankee (China), 9.110%, 428,495
10/15/01 #
1,000,000 Lehman Brothers Inc., 7.375%, 01/15/07 982,680
500,000 Termoemcali Funding Corp., 10.125%, 12/15/14 # 521,250
------------
2,215,779
------------
GOVERNMENT ISSUE -- 2.1%
500,000 Republic of Colombia, Global Bond, 8.375%, 02/15/27 454,375
------------
</TABLE>
See notes to financial statements.
13
<PAGE> 16
VISTA BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
OIL & GAS -- 3.6%
$ 375,000 Petroleum Geo-Services ASA, Yankee (Norway), 7.500%, $ 372,656
03/21/07
250,000 Petroliam Nasional Bhd., (Malaysia), 7.625%, 10/15/26 245,773
165,485 YPF Sociedad Anonima, Yankee (Argentina), 7.500%, 166,933
10/26/02
------------
785,362
------------
TELECOMMUNICATIONS -- 3.1%
400,000 360 Communications Corp., 7.500%, 03/01/06 393,720
300,000 Bellsouth Telecommunications, 7.875%, 08/01/32 295,827
------------
689,547
------------
UTILITIES -- 6.7%
400,000 Chilgener SA, Yankee (Chile), 6.500%, 01/15/06 373,852
400,000 Enersis SA, Yankee (Cayman Islands), 6.900%, 12/01/06 379,644
400,000 Ras Laffan Liquefied Natural Gas, (Qatar), 8.294%, 405,530
03/15/14 #
350,000 Tenaga Nasional, Yankee (Malaysia), 7.500%, 01/15/96 # 326,386
------------
1,485,412
------------
TOTAL CORPORATE NOTES & BONDS (COST $8,554,314) 8,460,469
------------
MORTGAGE BACKED SECURITIES -- 28.0%
--------------------------------------
MORTGAGE-BACKED PASS THRU SECURITIES -- 3.1%
618,750 Federal National Mortgage Association, 30 year, TBA, 674,244
10.000%, 04/15/27 ------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 21.5%
Federal Home Loan Mortgage Corp.,
250,000 Ser. 1343, Class H, 7.500%, 05/15/19 252,577
500,000 Ser. 1360, Class PK, 10.000%, 12/15/20 563,905
500,000 Ser. 1761, Class G, 8.000%, 06/15/21 512,340
306,000 Ser. 1865, Class G, 8.000%, 08/15/24 311,356
Federal National Mortgage Association,
391,116 Ser. 1989-81, Class E, 9.000%, 03/25/19 406,761
1,200,000 Ser. 1992-132, Class PL, 8.000%, 03/25/21 1,225,116
988,963 Ser. 1997-17, Class A, 7.250%, 03/31/04 986,748
500,000 Prudential Home Mortgage Securities, Ser. 1993-14, 483,750
Class A16, 7.000%, 05/23/23
------------
4,742,553
------------
</TABLE>
See notes to financial statements.
14
<PAGE> 17
VISTA BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ---------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
COMMERCIAL MORTGAGE BACKED SECURITIES -- 3.4%
$ 750,000 Morgan Stanley Capital I, Ser. 1996-WF1, Class A3, $ 752,109
7.380%, 08/15/06 #
------------
TOTAL MORTGAGE BACKED SECURITIES (COST $6,182,967) 6,168,906
------------
ASSET BACKED SECURITY -- 4.3%
------------------------------
500,000 Nomura CBO, Ltd., 6.67%, Ser. 1997-1, Class A2, 6.670%, 506,250
05/15/07 #
440,886 The Money Store Home Equity Trust, Ser. 1994-B, Class A3, 442,085
7.100%, 11/15/16
------------
(COST $949,968) 948,335
- -----------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS (COST $21,647,645) 21,482,331
- -----------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 2.6%
- -----------------------------------------------------------------------------------------
REPURCHASE AGREEMENT --
------------------------------
581,000 Aubrey G. Lanston, 5.250%, due 05/01/97, (Dated 04/30/97, 581,000
Proceeds $581,085, Secured by U.S. Treasury Note;
$584,000 at 6.625%, 07/31/01; Market Value $595,428)
(Cost $581,000)
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.9% $ 22,063,331
(COST $22,228,645)
- -----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
15
<PAGE> 18
VISTA SHORT-TERM BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- 95.3%
------------------------------------------------------------------------------------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS -- 13.6%
----------------------------------
U.S. Treasury Notes,
$ 1,000,000 8.250%, 07/15/98 $ 1,025,000
5,000,000 6.250%, 03/31/99 4,999,200
------------
TOTAL U.S. TREASURY OBLIGATIONS (COST $6,011,018) 6,024,200
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 17.9%
-------------------------------------------
1,874,050 Federal Home Loan Mortgage Corp., ARM, Pool #846416, 1,967,453
7.757%, 06/01/28
Federal National Mortgage Association,
1,178,089 Pool #100143, 11.500%, 10/15/18 1,355,170
706,986 Pool #100144, 11.500%, 03/04/19 813,255
Government National Mortgage Association,
1,737,785 ARM, Pool #8457, 7.125%, 07/20/24 1,786,113
1,892,979 Pool #780047, 9.000%, 12/15/17 2,015,682
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $7,961,551) 7,937,673
------------
STATE & MUNICIPAL OBLIGATIONS -- 4.2%
-------------------------------------
1,850,000 New York City, New York, Taxable, Ser. I, GO, 6.850%, 1,859,250
04/15/99 (COST $1,850,000) ------------
OTHER NOTES & BONDS -- 13.7%
----------------------------
SOVEREIGN BONDS -- 1.1%
500,000 Republic of Colombia, 8.000%, 06/14/01 501,720
------------
GLOBAL FINANCIAL SERVICES -- 2.3%
1,000,000 Corp Andina de Fomento, Yankee (Venezuela), 7.375%, 1,011,980
07/21/00 ------------
GLOBAL FINANCIAL PROJECT FINANCE -- 1.2%
505,356 Hero Asia BVI Co., Ltd., Yankee (China), 9.110%, 523,715
10/15/01 ------------
MULTIMEDIA -- 2.7%
1,200,000 News America Holdings, 7.450%, 06/01/00 1,214,460
------------
OIL & GAS -- 6.4%
2,000,000 Occidental Petroleum, 5.850%, 11/09/98 1,979,020
827,424 YPF Sociedad Anonima, Yankee (Argentina), 7.500%, 834,664
10/26/02
------------
2,813,684
------------
TOTAL OTHER NOTES & BONDS (COST $6,090,008) 6,065,559
------------
</TABLE>
See notes to financial statements.
16
<PAGE> 19
VISTA SHORT-TERM BOND FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- -----------------------------------------------------------------------------------------
<C> <S> <C>
MORTGAGE BACKED SECURITIES -- 29.0%
-----------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 23.3%
Federal Home Loan Mortgage Corp.,
$ 2,000,000 Ser. 1206, Class GA, 7.000%, 03/15/18 $ 2,006,860
1,900,000 Ser. 1311, Class G, 7.500%, 05/15/19 1,921,375
Federal National Mortgage Association,
2,041,740 Ser. 1991-131, Class G, 7.600%, 10/25/98 2,063,423
2,300,000 FRN, Ser. G-15, Class F, 6.106%, 06/25/21 2,339,514
2,000,000 GE Capital Mortgage Services, Inc., Ser. 1994-8, Class 1,980,000
A3, 6.000%, 02/25/24
------------
10,311,172
------------
COMMERCIAL MORTGAGE BACKED SECURITIES -- 5.7%
766,887 Blackrock Capital Finance L.P., Ser. 1996-C2, Class A, 768,325
7.642%, 11/15/26 #
1,754,272 Kidder Peabody Acceptance Corp., Ser. 1993-M1, Class 1,769,622
A1, 7.150%, 04/25/25
------------
2,537,947
------------
TOTAL MORTGAGE BACKED SECURITIES (COST $12,833,716) 12,849,119
------------
ASSET BACKED SECURITIES -- 16.9%
--------------------------------
2,000,000 Boatments Auto Trust, Ser. 1996-A, Class A3, 6.750%, 2,011,240
01/15/03
2,000,000 Capita Equipment Receivables Trust, Ser. 1996-1, Class 1,996,300
A3, 6.110%, 07/15/99
1,747,204 Ford Credit Grantor Trust, Ser. 1995-B, Class A, 5.900%, 1,740,652
10/15/00
1,755,943 The Money Store Home Equity Trust, Ser. 1994-B, Class A3, 1,760,719
7.100%, 11/15/16
------------
TOTAL ASSET BACKED SECURITIES (COST $7,520,941) 7,508,911
- -----------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS 42,244,712
(COST $42,267,235)
- -----------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 4.0%
- -----------------------------------------------------------------------------------------
COMMERCIAL PAPER -- 4.0%
------------------------
1,780,000 Household Finance Corp. 5.500%, 05/01/97 (COST 1,780,000
$1,780,000)
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.3% $ 44,024,712
(COST $44,047,235)
- -----------------------------------------------------------------------------------------
</TABLE>
# = Security may only be sold to qualified institutional buyers.
ARM = Adjustable rate mortgage.
FRN = Floating rate note.
TBA = To Be Announced.
See notes to financial statements.
17
<PAGE> 20
VISTA MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Vista Vista
U.S. Treasury U.S. Government Vista Short-Term
Income Securities Bond Bond
Fund Fund Fund Fund
------------- --------------- --------------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value (Note 1)...... $106,110,674 $71,073,480 $22,063,331 $44,024,712
Cash.......................................... 47,942 672 -- 378
Receivables:
Investment securities sold.................. -- 2,867,109 -- --
Interest.................................... 2,105,306 580,284 297,091 322,955
Fund shares sold............................ 26,363 -- 28,574 54,897
Other......................................... 7,893 109,988 3,983 60,079
------------ ----------- ----------- -----------
Total Assets............................. 108,298,178 74,631,533 22,392,979 44,463,021
------------ ----------- ----------- -----------
LIABILITIES:
Payable for investment securities purchased... -- 7,939,156 -- --
Payable for Fund shares redeemed.............. 122,688 2,464,957 17,771 53,517
Payable to custodian.......................... -- -- 232,355 --
Dividends payable............................. 175,100 286,138 24,995 28,314
Accrued liabilities: (Note 2)
Administration fees......................... 13,212 8,122 927 --
Distribution fees........................... 19,930 -- 1,435 1,097
Investment advisory fees.................... 20,258 16,398 -- --
Shareholder servicing fees.................. 2,886 10,788 209 4,112
Custodian................................... 9,496 5,250 2,888 5,651
Other....................................... 104,370 33,186 18,807 42,237
------------ ----------- ----------- -----------
Total Liabilities........................ 467,940 10,763,995 299,387 134,928
------------ ----------- ----------- -----------
NET ASSETS:
Paid in capital............................... 116,502,766 65,817,584 22,209,044 45,488,068
Accumulated undistributed net investment
income...................................... (48,598) 72,893 41,458 72,566
Accumulated undistributed net realized gain
(loss) on investment transactions........... (6,715,684) (2,127,946) 8,404 (1,210,018)
Net unrealized appreciation/depreciation of
investments................................. (1,908,246) 105,007 (165,314) (22,523)
------------ ----------- ----------- -----------
Net Assets:................................. $107,830,238 $63,867,538 $22,093,592 $44,328,093
============ =========== =========== ===========
Class A Shares............................. $ 97,306,191 $ 3,367,952 $ 3,987,560 $ 7,689,912
Class B Shares............................. $ 10,524,047 $ 1,029,129 $36,638,181
Institutional Shares....................... $60,499,586 $17,076,903
Shares of beneficial interest outstanding
($.001 par value; unlimited number of shares
authorized):
Class A Shares............................. 8,926,565 345,382 385,157 766,574
Class B Shares............................. 967,032 98,858
Institutional Shares....................... 6,219,371 1,650,357 3,646,580
Class A Shares:
Net asset value and redemption price per share
*........................................... $10.90 $9.75 $10.35 $10.03
Maximum offering price per share (net asset
value per share/95.5%, 95.5%, 95.5% and
98.5%)...................................... $10.41 $10.21 $10.84 $10.18
Class B Shares:
Net asset value and offering price per
share*...................................... $10.88 $10.41
Institutional Shares:
Net asset value and offering price per
share*...................................... $9.73 $10.35 $10.05
=========== ============ =========== ===========
Cost of Investments............................ $108,018,920 $70,968,473 $22,228,645 $44,047,235
=========== ============ =========== ===========
</TABLE>
- ---------------
* Net assets/shares outstanding.
See notes to financial statements.
18
<PAGE> 21
VISTA MUTUAL FUNDS
STATEMENT OF OPERATIONS
For the six months ended April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Vista Vista
U.S. Treasury U.S. Government Vista Short-Term
Income Securities Bond Bond
Fund Fund Fund Fund
------------- --------------- --------- ----------
<S> <C> <C> <C> <C>
INTEREST INCOME............................ $ 3,800,451 $ 2,303,202 $ 761,801 $1,633,825
----------- ----------- -------- ----------
EXPENSES: (Note 2)
Administration fees....................... 83,568 51,865 16,746 37,809
Distribution fees......................... 165,110 4,175 7,322 11,114
Investment Advisory fees.................. 167,137 103,731 33,492 63,014
Shareholder servicing fees................ 139,280 86,442 27,910 63,014
Custodian fees............................ 29,725 21,017 16,668 18,813
Printing and postage...................... 14,116 2,618 1,487 4,854
Professional fees......................... 14,311 17,118 7,187 10,664
Registration costs........................ 6,172 9,895 25,041 21,285
Transfer agent fees....................... 77,997 17,220 25,215 18,818
Trustees fees............................. 2,786 1,729 558 1,260
Other..................................... 1,732 2,857 2,088 315
----------- ----------- -------- ----------
Total expenses...................... 701,934 318,667 163,714 250,960
----------- ----------- -------- ----------
Less amounts waived (Note 2E)............. 162,296 21,513 71,248 128,419
Less expenses borne by the Distributor.... -- -- 25,232 --
----------- ----------- -------- ----------
Net expenses............................ 539,638 297,154 67,234 122,541
----------- ----------- -------- ----------
Net investment income................... 3,260,813 2,006,048 694,567 1,511,284
----------- ----------- -------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss) on:
Investments............................. (523,925) (1,218,810) 26,657 (73,544)
Futures transactions.................... (23,408) -- -- --
Change in net unrealized appreciation/
depreciation on investments............. (1,797,555) 94,382 (428,252) (286,198)
----------- ----------- -------- ----------
Net realized and unrealized gain (loss) on
investments............................. (2,344,888) (1,124,428) (401,596) (359,742)
----------- ----------- -------- ----------
Net increase in net assets from
operations.............................. $ 915,925 $ 881,620 $ 292,972 $1,151,542
=========== =========== ======== ==========
</TABLE>
See notes to financial statements.
19
<PAGE> 22
VISTA MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the periods indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Vista
U.S. Treasury U.S. Government
Income Securities
Fund Fund
------------------------------ -----------------------------
Six Months Year Six Months 12/01/95*
Ended Ended Ended Through
04/30/97 10/31/96 04/30/97 10/31/96
------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income............................... $ 3,260,813 $ 6,434,044 $ 2,006,048 $ 4,024,722
Net realized gain (loss) on investments and futures
transactions...................................... (547,333) 355,910 (1,218,810) 244,616
Change in net unrealized appreciation/depreciation
on investments and futures........................ (1,797,555) (3,055,305) 94,382 (2,729,970)
------------ ------------ ----------- ------------
Increase in net assets from operations............ 915,925 3,734,649 881,620 1,539,368
------------ ------------ ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1I)
Net investment income............................... (3,229,284) (6,438,189) (2,034,800) (3,934,393)
Net realized gain on investment transactions........ -- -- -- --
------------ ------------ ----------- ------------
Total dividends and distributions................. (3,229,284) (6,438,189) (2,034,800) (3,934,393)
------------ ------------ ----------- ------------
Increase (decrease) from capital share transactions
(Note 5)............................................ (6,342,051) 9,427,327 (6,292,751) (11,088,403)
------------ ------------ ----------- ------------
Total increase (decrease) in net assets........... (8,655,410) 6,723,787 (7,445,931) (13,483,428)
NET ASSETS:
Beginning of period................................. 116,485,648 109,761,861 71,313,469 84,796,897
------------ ------------ ----------- ------------
End of period....................................... $ 107,830,238 $ 116,485,648 $ 63,867,538 $ 71,313,469
============ ============ =========== ============
<CAPTION>
Vista
Vista Short-Term
Bond Bond
Fund Fund
----------------------------- ----------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
04/30/97 10/31/96 04/30/97 10/31/96
------------ ------------- ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income............................... $ 694,567 $ 2,954,280 $ 1,512,184 $ 2,340,613
Net realized gain (loss) on investments and futures
transactions...................................... 26,657 406,668 (25,239) (12,737)
Change in net unrealized appreciation/depreciation
on investments and futures........................ (428,252) (2,461,517) (334,503) 147,029
----------- ------------ ----------- -----------
Increase in net assets from operations............ 292,972 899,431 1,152,442 2,474,905
----------- ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1I)
Net investment income............................... (662,762) (2,951,527) (1,502,395) (2,319,533)
Net realized gain on investment transactions........ (421,167) (293,787) -- --
----------- ------------ ----------- -----------
Total dividends and distributions................. (1,083,929) (3,245,314) (1,502,395) (2,319,533)
----------- ------------ ----------- -----------
Increase (decrease) from capital share transactions
(Note 5)............................................ 3,298,609 (35,353,068) (7,980,446) 16,257,372
----------- ------------ ----------- -----------
Total increase (decrease) in net assets........... 2,507,652 (37,698,951) (8,330,399) 16,412,744
NET ASSETS:
Beginning of period................................. 19,585,940 57,284,891 52,658,492 36,245,748
----------- ------------ ----------- -----------
End of period....................................... $ 22,093,592 $ 19,585,940 $ 44,328,093 $ 52,658,492
=========== ============ =========== ===========
</TABLE>
- ---------------
* In 1996, the Fund changed its fiscal year end from November 30 to October 31.
See notes to financial statements.
20
<PAGE> 23
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES -- Mutual Fund Group (the
"Trust") was organized on May 11, 1987 as a Massachusetts Business Trust, and is
registered under the Investment Company Act of 1940, as amended, (the "1940
Act") as an open-end management investment company. Vista U.S. Treasury Income
Fund ("VUSTI") (formerly the Vista U.S. Government Income Fund), Vista U.S.
Government Securities Fund ("VUSGS"), Vista Bond Fund ("VBF"), and Vista
Short-Term Bond Fund ("VSTBF"), collectively, the "Funds", are four separate
portfolios of The Trust.
The Funds offer various classes of shares as follows:
<TABLE>
<CAPTION>
Fund Classes Offered
- ------ ---------------------------------------------------------------------------
<S> <C>
VUSTI Class A, Class B
VUSGS Class A, Institutional
VBF Class A, Class B, Institutional
VSTBF Class A, Institutional
</TABLE>
Class A shares generally provide for a front-end sales charge while Class B
shares provide for a contingent deferred sales charge. No sales charges are
assessed with respect to the Institutional Class. All classes of shares have
equal rights as to earnings, assets and voting privileges except that each class
may bear different distribution fees and each class has exclusive voting rights
with respect to its distribution plan.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
The following is a summary of significant accounting policies followed by
the Funds:
A. Valuation of investments -- Bonds and other fixed income securities
(other than short-term obligations), including listed issues, are valued on
the basis of valuations supplied by pricing services or by matrix pricing
systems of a major dealer in bonds. Short-term debt securities with 61 days
or more to maturity at time of purchase are valued, through the 61st day
prior to maturity, at market value based on quotations obtained from market
makers or other appropriate sources; thereafter, the value on the 61st day
is amortized on a straight-line basis over the remaining number of days to
maturity. Short-term investments with 60 days or less to maturity at time of
purchase are valued at amortized cost, which approximates market. Portfolio
securities for which there are no such quotations or valuations are valued
at fair value as determined in good faith by or at the direction of the
Trustees.
B. Repurchase agreements -- It is the Trust's policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government Agency
securities. All collateral is held by the Trust's custodian bank,
subcustodian, or a bank with which the custodian bank has entered into a
subcustodian agreement, or is segregated in the Federal Reserve Book Entry
System. In connection with transactions in repurchase agreements, if the
seller defaults and the value of the collateral declines, or if the seller
enters an insolvency proceeding, realization of the collateral by the Trust
may be delayed or limited.
C. Futures contracts -- When a Fund enters into a futures contract, it
makes an initial margin deposit in a segregated account, either in cash or
liquid securities. Thereafter, the futures contract is marked to market and
the Fund makes (or receives) additional cash payments daily to the broker.
Changes in the value of the contract are recorded as unrealized
appreciation/depreciation until the contract is closed or settled.
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, 1997, the Funds had no outstanding futures contracts.
D. Written options -- When a Fund writes an option 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
21
<PAGE> 24
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
current market value of the written options and the change is recorded in a
corresponding unrealized gain or loss account. When a written option expires
on its stipulated expiration date, or when a closing transaction is entered
into, the related liability is extinguished and the Fund realizes a gain (or
loss if the cost of the closing transaction exceeds the premium received
when the option was written).
The VUSTI writes options on U.S. Treasury futures. These options are settled
for cash and subject the Fund to market risk in excess of the amounts that
are reflected in the Statement of Assets and Liabilities. The Fund, however,
is not subject to credit risk on written options as the counterparty has
already performed its obligation by paying a premium at the inception of the
contract.
As of April 30, 1997, VUSTI had no outstanding written options.
E. Security transactions and investment income -- Investment transactions
are accounted for on the trade date (the date the order to buy or sell is
executed). Securities gains and losses are calculated on the identified cost
basis. Interest income is determined on the basis of coupon interest accrued
adjusted for amortization of premiums, except VUSTI, and accretion of
discounts.
F. Expenses -- Expenses directly attributable to a Fund are charged to
that Fund; other expenses of the Trust are allocated proportionately among
each of the Funds within the Trust in relation to the net assets of each
Fund or on another reasonable basis. Expenses directly attributable to a
particular class are charged directly to such class. In calculating net
asset value per share of each class, investment income, realized and
unrealized gains and losses and expenses other than class specific expenses
are allocated daily to each class of shares based upon the proportion of net
assets of each class at the beginning of each day.
G. Organization costs -- Organization and initial registration costs
incurred in connection with establishing the Funds have been deferred and
are being amortized on a straight-line basis over a sixty month period
beginning at the commencement of operations of each Fund.
H. Federal income taxes -- Each Fund is treated as a separate taxable
entity for Federal income tax purposes. The Trust's policy is to comply with
the provisions of the Internal Revenue Code applicable to regulated
investment companies and to distribute to shareholders all of its
distributable net investment income, and net realized gain on investments.
In addition, the Trust intends to make distributions as required to avoid
excise taxes. Accordingly, no provision for Federal income or excise tax is
necessary.
I. Distributions to shareholders -- Dividends and distributions paid to
shareholders are recorded on the ex-dividend date. The amount of dividends
and distributions from net investment income and net realized capital gains
is determined in accordance with Federal income tax regulations, which may
differ from generally accepted accounting principles. To the extent these
"book/tax" differences are permanent in nature, (i.e., that they result from
other than timing of recognition -- "temporary differences") such amounts
are reclassified within the capital accounts based on their Federal
tax-basis treatment. Dividends and distributions which exceed net investment
income or net realized capital gains for financial reporting purposes but
not for tax purposes are reported as distributions in excess of net
investment income or net realized capital gains.
J. Dollar rolls -- The funds (with the exception of VUSTI) enter into
dollar rolls in which the Funds sell mortgage-backed securities for delivery
in the current month and simultaneously contract to repurchase substantially
similar (same type, coupon and maturity) securities on a specified future
date. During the roll period, the Funds forgo principal and interest paid on
the securities. The Funds are compensated by the interest earned on the cash
proceeds of the initial sale and a fee earned for entering into the roll
transaction. The fee is amortized into income over the duration of the roll
transaction.
22
<PAGE> 25
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A. Investment advisory fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank ("Chase" or the "Adviser") acts as the
Investment Adviser to the Funds. Chase is a direct wholly-owned subsidiary
of The Chase Manhattan Corporation. As Investment Adviser, Chase supervises
the investments of the Funds and for such services is paid a fee. The fee is
computed daily and paid monthly at an annual rate equal to 0.30%, 0.30%,
0.30% and 0.25% of the average daily net assets for VUSTI, VUSGS, VBF and
VSTBF, respectively. The Adviser, voluntarily waived all or a portion of its
fees as outlined in Note 2.E. below.
Chase Asset Management, Inc. ("CAM"), a registered investment adviser, is
the sub-investment adviser to each Fund pursuant to a Sub-Investment
Advisory Agreement between CAM and Chase. CAM is a wholly owned subsidiary
of Chase and is entitled to receive a fee, payable by Chase from its
advisory fee, at an annual rate equal to 0.15% for VUSTI, VUSGS and VBF, and
0.10% for VSTBF of average daily net assets.
B. Shareholder servicing fees -- The Trust has adopted an Administrative
Services Plan which, among other things, provides that the Trust on behalf
of the Funds may obtain the services of one or more Shareholder Servicing
Agents. For its services, the Shareholder Servicing Agent will receive a
fee. The fee is computed daily and paid monthly at an annual rate equal to
0.25% of the average daily net assets of the Funds.
Since inception of the Funds, 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 its distribution services.
The Distributor voluntarily waived all or a portion of distribution fees as
outlined in Note 2.E. below.
D. Administration fee -- Pursuant to an Administration Agreement, Chase
(the "Administrator") provides certain administration services to the Trust.
For these services and facilities, the Administrator receives from each Fund
a fee computed at the annual rate equal to 0.10% of the respective Fund's
average daily net assets. The Administrator voluntarily waived all or a
portion of the administration fees as outlined in Note 2.E. below.
23
<PAGE> 26
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
E. Waivers of fees -- For the six month period ended April 30, 1997, the
Investment Adviser, Shareholder Servicing Agent, Administrator and
Distributor voluntarily waived fees for each of the Funds as follows:
<TABLE>
<CAPTION>
Fee VUSTI VUSGS VBF VSTBF
------------------------------------- --------- -------- -------- ---------
<S> <C> <C> <C> <C>
Administration....................... -- -- $ 11,163 $ 25,206
Distribution......................... -- $ 4,175 -- 4,781
Investment Advisory.................. $ 40,879 -- 33,492 63,014
Shareholder Servicing................ 121,417 17,338 26,593 35,418
--------- -------- -------- ---------
Total................................ $ 162,296 $ 21,513 $ 71,248 $ 128,419
--------- -------- -------- ---------
Distributor Reimbursement............ -- -- $ 25,232 --
========= ======== ======== =========
</TABLE>
F. Other -- Certain officers of the Trust are officers of Vista Fund
Distributors, Inc. or of its parent corporation, BISYS.
Chase provides portfolio accounting and custody services for the Funds.
Compensation for such services are presented in the Statement of Operations
as custodian fees.
3. INVESTMENT TRANSACTIONS -- For the six month period ended April 30, 1997,
purchases and sales of investments (excluding short-term investments) were as
follows:
<TABLE>
<CAPTION>
VUSTI VUSGS VBF VSTBF
------------ ------------- ------------ ------------
<S> <C> <C> <C> <C>
Purchases (excluding U.S.
Government).............. -- -- $ 10,064,333 $ 20,748,521
Sales (excluding U.S.
Government).............. -- $ 13,587,817 8,476,107 18,988,809
Purchases of U.S.
Government............... $ 27,309,285 103,551,868 35,837,380 80,109,755
Sales of U.S. Government... 32,244,698 107,344,687 36,807,432 88,013,192
</TABLE>
Written Option Transactions:
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, 1997 are as follows:
<TABLE>
<CAPTION>
VUSTI VUSGS VBF VSTBF
------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Aggregate cost....... $ 108,018,920 $ 70,968,473 $ 22,228,645 $ 44,047,235
============= =========== =========== ===========
Gross unrealized
appreciation....... $ 227,976 $ 301,322 $ 60,596 $ 87,412
Gross unrealized
depreciation....... (2,136,222) (196,315) (225,910) (109,935)
------------- ------------ ------------ ------------
Net unrealized
appreciation....... $ (1,908,246) $ 105,007 $ (165,314) $ (22,523)
============= =========== =========== ===========
</TABLE>
24
<PAGE> 27
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
5. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST -- Transactions in Shares of
Beneficial Interest were as follows:
<TABLE>
<CAPTION>
Vista U.S. Treasury Income Fund#
------------------------------------------------------
11/01/96
Through Year Ended
04/30/97 October 31, 1996*
------------------------- -------------------------
Amount Shares Amount Shares
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
Class A
Shares sold....................... $ 7,301,885 661,436 $ 33,787,054 3,035,946
Shares issued in reinvestment of
distributions................... 1,960,488 178,010 3,763,710 337,488
Shares redeemed................... (15,571,643) (1,412,469) (28,490,015) (2,565,254)
------------ ---------- ------------ ----------
Net increase (decrease) in Trust
shares outstanding.............. $ (6,309,270) (573,023) $ 9,060,749 808,180
============ ========== ============ ==========
</TABLE>
<TABLE>
<CAPTION>
Vista U.S. Treasury Income Fund#
------------------------------------------------------
11/01/96
Through Year Ended
04/30/97 October 31, 1996*
------------------------- -------------------------
Amount Shares Amount Shares
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
Class B
Shares sold....................... $ 1,744,089 159,386 $ 4,293,818 385,579
Shares issued in reinvestment of
distributions................... 199,838 18,179 431,500 38,790
Shares redeemed................... (1,976,708) (179,977) (4,358,740) (391,659)
------------ ---------- ------------ ----------
Net increase (decrease) in Trust
shares outstanding.............. $ (32,781) (2,412) $ 366,578 32,710
============ ========== ============ ==========
</TABLE>
<TABLE>
<CAPTION>
Vista U.S. Government Securities Fund
------------------------------------------------------
11/01/96 05/06/96
Through Through
04/30/97 10/31/96**
------------------------- -------------------------
Amount Shares Amount Shares
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
Class A
Shares sold....................... $ 306,915 31,296 $ 3,347,216 348,260
Shares issued in reinvestment of
distributions................... 90,271 9,186 69,915 7,191
Shares redeemed................... (311,927) (31,864) (181,268) (18,687)
------------ ---------- ------------ ----------
Net increase (decrease) in Trust
shares outstanding.............. $ 85,259 8,618 $ 3,235,863 336,764
============ ========== ============ ==========
</TABLE>
25
<PAGE> 28
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista U.S. Government Securities Fund*
------------------------------------------------------
11/01/96 05/06/96
Through Through
04/30/97 10/31/96
------------------------- -------------------------
Amount Shares Amount Shares
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
Institutional Shares
Shares sold....................... $ 7,642,363 776,159 $ 16,871,922 1,703,494
Shares issued in reinvestment of
distributions................... 239,320 24,383 249,093 25,455
Shares redeemed................... (14,259,693) (1,458,246) (31,445,280) (3,182,479)
------------ ---------- ------------ ----------
Net increase (decrease) in Trust
shares outstanding.............. $ (6,378,010) (657,704) $(14,324,265) (1,453,530)
============ ========== ============ ==========
</TABLE>
<TABLE>
<CAPTION>
Vista Bond Fund
------------------------------------------------------
11/01/96 05/06/96
Through Through
04/30/97 10/31/96**
------------------------- -------------------------
Amount Shares Amount Shares
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
Class A
Shares sold....................... $ 3,099,540 297,104 $ 1,019,597 97,355
Shares issued in reinvestment of
distributions................... 34,732 3,323 6,269 593
Shares redeemed................... (79,062) (7,505) (59,799) (5,712)
------------ ---------- ------------ ----------
Net increase (decrease) in Trust
shares outstanding.............. $ 3,055,210 292,922 $ 966,067 92,236
============ ========== ============ ==========
</TABLE>
<TABLE>
<CAPTION>
Vista Bond Fund
------------------------------------------------------
11/01/96 05/06/96
Through Through
04/30/97 10/31/96**
------------------------- -------------------------
Amount Shares Amount Shares
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
Class B
Shares sold....................... $ 953,570 88,974 $ 1,149,672 109,737
Shares issued in reinvestment of
distributions................... 41,411 3,934 9,106 862
Shares redeemed................... (753,289) (70,392) (362,816) (34,256)
------------ ---------- ------------ ----------
Net increase (decrease) in Trust
shares outstanding.............. $ 241,692 22,516 $ 795,962 76,343
============ ========== ============ ==========
</TABLE>
26
<PAGE> 29
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Bond Fund
------------------------------------------------------
11/01/96
Through Year Ended
04/30/97 October 31, 1996
------------------------- -------------------------
Amount Shares Amount Shares
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
Institutional Shares
Shares sold....................... $ 3,729,848 350,925 $ 7,747,917 718,508
Shares issued in reinvestment of
distributions................... 815,762 77,937 3,072,283 286,096
Shares redeemed................... (4,543,903) (438,091) (47,935,297) (4,597,662)
------------ ---------- ------------ ----------
Net increase (decrease) in Trust
shares outstanding.............. $ 1,707 (9,229) $(37,115,097) (3,593,058)
============ ========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
Vista Short-Term Bond Fund
------------------------------------------------------
11/01/96 05/06/96
Through Through
04/30/97 10/31/96**
------------------------- -------------------------
Amount Shares Amount Shares
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
Class A
Shares sold....................... $ 8,930,611 886,484 $ 9,842,672 980,691
Shares issued in reinvestment of
distributions................... 224,374 22,300 180,407 17,971
Acquisition from Hanover Merger... -- -- 9,525,310 944,428
Shares redeemed................... (10,805,563) (1,074,584) (10,152,955) (1,010,716)
------------ ---------- ------------ ----------
Net increase (decrease) in Trust
shares outstanding.............. $ (1,650,578) (165,800) $ 9,395,434 932,374
============ ========== ============ ==========
</TABLE>
<TABLE>
<CAPTION>
Vista Short-Term Bond Fund
------------------------------------------------------
11/01/96
Through Year Ended
04/30/97 October 31, 1996
------------------------- -------------------------
Amount Shares Amount Shares
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
Institutional Shares
Shares sold....................... $ 5,478,808 542,908 $ 23,871,765 2,370,072
Shares issued in reinvestment of
distributions................... 1,100,221 109,150 1,898,858 188,565
Shares redeemed................... (12,908,898) (1,279,056) (18,908,685) (1,880,725)
------------ ---------- ------------ ----------
Net increase (decrease) in Trust
shares outstanding.............. $ (6,329,869) (626,998) $ 6,861,938 677,912
============ ========== ============ ==========
</TABLE>
- ---------------
* In 1996, the Fund changed its fiscal year end from November 30 to October 31.
The period shown is December 1, 1995 through October 31, 1996.
# Formerly known as the Vista U.S. Government Income Fund.
** Commencement of offering class of shares.
27
<PAGE> 30
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
6. RETIREMENT PLAN -- The Funds have adopted an unfunded noncontributory
defined benefit pension plan covering all independent trustees of the Funds who
will have served as an independent trustee for at least five years at the time
of retirement. Benefits under this plan are based on compensation and years of
service. Pension expenses for the six months ended April 30, 1997, included in
Trustees Fees and Expenses in the Statement of Operations, and accrued pension
liability included in other accrued liabilities, in the Statement of Assets and
Liabilities were as follows:
<TABLE>
<CAPTION>
Accrued
Pension Pension
Expenses Liability
-------- -------
<S> <C> <C>
VUSTI........................................................ $1,288 $7,393
VUSGS........................................................ 846 5,096
VBF.......................................................... 232 1,479
VSTBF........................................................ 554 3,575
</TABLE>
7. ACQUISITION -- On May 6, 1996, The Vista U.S. Government Securities Fund
acquired the net assets of the Hanover U.S. Government Fund in a tax-free
reorganization. At the time of the reorganization, the acquired Fund had
approximately $81 million in net assets. The Vista Fund had no assets and no
activity prior to the acquisition. The information included in the financial
statements for VUSGS for the period prior to May 6, 1996 relates to the
predecessor Hanover Fund.
Also on May 6, 1996, the Vista Short-Term Bond Fund acquired all the net assets
(approximately $9.5 million) of the Hanover Short Term U.S. Government Fund
pursuant to a plan of reorganization approved by Hanover Fund shareholders in
April of 1996. The acquisition was accomplished by a tax-free exchange of
shares, whereby the Hanover Shareholders surrendered 976,558 shares (net assets
of $9.5 million) of the Hanover Short Term U.S. Government Fund in exchange for
944,428 shares of the Vista Short-Term Bond Fund. The post-merger net assets of
the combined Fund were approximately $46,118,000.
28
<PAGE> 31
VISTA MUTUAL FUNDS
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OF BENEFICIAL INTEREST
OUTSTANDING
Throughout each period indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista U.S. Treasury Income Fund**
--------------------------------------------------------------------------
Class A
--------------------------------------------------------------------------
11/01/96 Year Ended
Through ------------------------------------------------------------
04/30/97 10/31/96 10/31/95 10/31/94 10/31/93 10/31/92
--------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period................. $ 11.13 $ 11.40 $ 10.60 $ 12.10 $ 11.68 $ 11.53
------- -------- ------- ------- ------- -------
Income from Investment Operations:
Net Investment Income............................. 0.324 0.655 0.699 0.646 0.666 0.786
Net Gains or (Losses) in Securities (both realized
and unrealized)................................. (0.233) (0.268) 0.798 (1.297) 0.699 0.267
------- -------- ------- ------- ------- -------
Total from Investment Operations.................. 0.091 0.387 1.497 (0.651) 1.365 1.053
------- -------- ------- ------- ------- -------
Less Distributions:
Dividends from Net Investment Income.............. 0.321 0.656 0.697 0.646 0.667 0.786
Distributions from Capital Gains.................. -- -- -- 0.203 0.287 0.111
------- -------- ------- ------- ------- -------
Total Distributions............................... 0.321 0.656 0.697 0.849 0.954 0.897
------- -------- ------- ------- ------- -------
Net Asset Value, End of Period....................... $ 10.90 $ 11.13 $ 11.40 $ 10.60 $ 12.10 $ 11.68
======= ======== ======= ======= ======= =======
Total Return (1)..................................... 0.83% 3.56% 14.59% (5.58%) 12.35% 9.40%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted)............. $97,306 $111,482 $99,109 $99,524 $93,039 $59,391
Ratio of Expenses to Average Net Assets #........... 0.90% 0.90% 0.87% 0.76% 0.75% 0.38%
Ratio of Net Investment Income to Average
Net Assets #..................................... 5.92% 5.89% 6.37% 5.74% 5.61% 6.52%
Ratio of Expenses Without Waivers and Assumption of
Expenses to Average Net Assets #.................. 1.21% 1.29% 1.40% 1.28% 1.14% 1.34%
Ratio of Net Investment Income Without Waivers and
Assumptions of Expenses to Average Net Assets #... 5.61% 5.50% 5.84% 5.22% 5.22% 5.56%
Portfolio Turnover Rate.............................. 25% 103% 164% 163% 296% 514%
<CAPTION>
Vista U.S. Treasury Income Fund**
-----------------------------------------------
Class B
-----------------------------------------------
11/01/96 Year Ended 11/04/93*
Through --------------------- Through
04/30/97 10/31/96 10/31/95 10/31/94
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period................. $ 11.11 $ 11.37 $ 10.59 $ 11.98
------- ------- ------- -------
Income from Investment Operations:
Net Investment Income............................. 0.284 0.571 0.621 0.592
Net Gains or (Losses) in Securities (both realized
and unrealized)................................. (0.238) (0.265) 0.797 (1.187)
------- ------- ------- -------
Total from Investment Operations.................. 0.046 0.306 1.418 (0.595)
------- ------- ------- -------
Less Distributions:
Dividends from Net Investment Income.............. 0.276 0.566 0.638 0.592
Distributions from Capital Gains.................. -- -- -- 0.203
------- ------- ------- -------
Total Distributions............................... 0.276 0.566 0.638 0.795
------- ------- ------- -------
Net Asset Value, End of Period....................... $ 10.88 $ 11.11 $ 11.37 $ 10.59
======= ========= ========= =========
Total Return (1)..................................... 0.42% 2.82% 13.80% (5.18%)
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted)............. $10,524 $10,764 $10,652 $ 5,184
Ratio of Expenses to Average Net Assets #........... 1.64% 1.64% 1.62% 1.50%
Ratio of Net Investment Income to Average
Net Assets #..................................... 5.18% 5.12% 5.53% 5.28%
Ratio of Expenses Without Waivers and Assumption of
Expenses to Average Net Assets #.................. 1.71% 1.79% 1.89% 1.78%
Ratio of Net Investment Income Without Waivers and
Assumptions of Expenses to Average Net Assets #... 5.11% 4.97% 5.26% 5.00%
Portfolio Turnover Rate.............................. 25% 103% 164% 163%
</TABLE>
- ---------------
(1) Total return figures do not include the effect of any sales load.
* Commencement of operations.
# Short periods have been annualized.
** Formerly known as the Vista U.S. Government Income Fund.
See notes to financial statements.
29
<PAGE> 32
VISTA MUTUAL FUNDS
SELECTED DATA AND RATIOS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
Throughout each period indicated (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista U.S. Government
Securities Fund
------------------------
Class A
------------------------
11/01/96 05/06/96**
Through Through
04/30/97 10/31/96
-------- ----------
<S> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period........................ $ 9.90 $ 9.62
------- -------
Income from Investment Operations:
Net Investment Income...................................... 0.274 0.259
Net Gains or Losses in Securities (both realized and
unrealized).............................................. (0.157) 0.255
------- -------
Total from Investment Operations......................... 0.117 0.514
------- -------
Less Distributions:
Dividends from Net Investment Income....................... 0.267 0.234
Distributions from Capital Gains........................... -- --
------- -------
Total Distributions...................................... 0.267 0.234
------- -------
Net Asset Value, End of Period.............................. $ 9.75 $ 9.90
======= =======
Total Return (1)............................................ 1.20% 5.41%
Ratios/Supplemental Data
Net Assets, End of Period (000 omitted).................. $ 3,368 $ 3,333
Ratio of Expenses to Average Net Assets: #............... 1.05% 1.05%
Ratio of Net Investment Income to Average
Net Assets: #........................................... 5.63% 5.50%
Ratio of Expenses Without Waivers and Assumption of
Expenses to Average Net Assets: #....................... 1.98% 1.55%
Ratio of Net Investment Income Without Waivers and
Assumption of Expenses to Average Net Assets: #......... 4.70% 5.00%
Portfolio Turnover Rate..................................... 167% 101%
<CAPTION>
Vista U.S. Government Securities Fund
-----------------------------------------------------------------
Class I
-----------------------------------------------------------------
11/01/96 12/01/95(2) Year Ended 02/19/93*
Through Through ---------------------- Through
04/30/97 10/31/96 11/30/95 11/30/94 11/30/93
-------- ----------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period........................ $ 9.89 $ 10.18 $ 9.23 $ 10.27 $ 10.00
------- ------- ------- ------- --------
Income from Investment Operations:
Net Investment Income...................................... 0.284 0.501 0.560 0.500 0.340
Net Gains or Losses in Securities (both realized and
unrealized).............................................. (0.156) (0.302) 0.950 (0.940) 0.270
------- ------- ------- ------- --------
Total from Investment Operations......................... 0.128 0.199 1.510 (0.440) 0.610
------- ------- ------- ------- --------
Less Distributions:
Dividends from Net Investment Income....................... 0.288 0.489 0.560 0.500 0.340
Distributions from Capital Gains........................... -- -- -- 0.100 --
------- ------- ------- ------- --------
Total Distributions...................................... 0.288 0.489 0.560 0.600 0.340
------- ------- ------- ------- --------
Net Asset Value, End of Period.............................. $ 9.73 $ 9.89 $ 10.18 $ 9.23 $ 10.27
======= ======= ======= ======= ========
Total Return (1)............................................ 1.31% 2.09% 16.82% -4.41% 6.16%
Ratios/Supplemental Data
Net Assets, End of Period (000 omitted).................. $60,500 $ 67,980 $83,304 $83,649 $ 86,089
Ratio of Expenses to Average Net Assets: #............... 0.85% 0.85% 0.85% 0.85% 0.85%
Ratio of Net Investment Income to Average
Net Assets: #........................................... 5.81% 5.55% 5.78% 5.15% 4.26%
Ratio of Expenses Without Waivers and Assumption of
Expenses to Average Net Assets: #....................... 0.94% 1.04% 1.11% 1.04% 1.04%
Ratio of Net Investment Income Without Waivers and
Assumption of Expenses to Average Net Assets: #......... 5.72% 5.36% 5.52% 4.96% 4.07%
Portfolio Turnover Rate..................................... 167% 101% 220% 134% 37%
</TABLE>
- ---------------
* Commencement of operations.
** Commencement of offering of class of shares.
# Short periods have been annualized
(1) Total return figures do not include the effect of any sales load.
(2) In 1996, the Fund changed its fiscal year end from November 30 to October
31.
See notes to financial statements.
30
<PAGE> 33
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 Bond Fund
-------------------------------------------
Class A Class B
------------------- -------------------
11/01/96 05/06/96* 11/01/96 05/06/96*
Through Through Through Through
04/30/97 10/31/96 04/30/97 10/31/96
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period................. $10.71 $10.39 $10.76 $10.39
------- ------- ------- -------
Income from Investment Operations
Net Investment Income............................. 0.303 0.288 0.286 0.233
Net Gains or (Losses) in Securities (both realized
and unrealized).................................. (0.166) 0.310 (0.165) 0.368
------- ------- ------- -------
Total from Investment Operations.................. 0.137 0.598 0.121 0.601
------- ------- ------- -------
Less Distributions
Dividends from Net Investment Income.............. 0.287 0.278 0.261 0.231
Distributions from Capital Gains.................. 0.210 -- 0.210 --
------- ------- ------- -------
Total Distributions............................... 0.497 0.278 0.471 0.231
------- ------- ------- -------
Net Asset Value, End of Period....................... $10.35 $10.71 $10.41 $10.76
======= ======== ======== ========
Total Return (1)..................................... 1.30% 5.95% 1.15% 6.12%
Ratios/Supplemental Data
Net Assets, End of Period (000 omitted)............. $3,988 $ 988 $1,029 $ 821
Ratio of Expenses to Average Net Assets #........... 0.90% 0.90% 1.64% 1.65%
Ratio of Net Investment Income to Average
Net Assets #...................................... 6.10% 5.75% 5.12% 4.97%
Ratio of Expenses Without Waivers and Assumption of
Expenses to Average Net Assets #.................. 2.76% 2.39% 3.73% 2.93%
Ratio of Net Investment Income Without Waivers and
Assumptions of Expenses #......................... 4.24% 4.26% 3.03% 3.69%
Portfolio Turnover Rate.............................. 215% 122% 215% 122%
<CAPTION>
Vista Bond Fund
---------------------------------------------------------------------
Institutional Class
---------------------------------------------------------------------
11/01/96 Year Ended 07/01/92**
Through -------------------------------------------- Through
04/30/97 10/31/96 10/31/95 10/31/94 10/31/93 10/31/92
-------- -------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period................. $ 10.71 $ 10.91 $ 10.08 $ 11.30 $ 10.76 $ 10.70
------- ------- ------- ------- ------- ---------
Income from Investment Operations
Net Investment Income............................. 0.330 0.665 0.687 0.667 0.622 0.240
Net Gains or (Losses) in Securities (both realized
and unrealized).................................. (0.162) (0.148) 0.854 (1.140) 0.629 0.110
------- ------- ------- ------- ------- ---------
Total from Investment Operations.................. 0.168 0.517 1.541 (0.473) 1.251 0.350
------- ------- ------- ------- ------- ---------
Less Distributions
Dividends from Net Investment Income.............. 0.318 0.662 0.687 0.667 0.684 0.240
Distributions from Capital Gains.................. 0.210 0.055 0.024 0.081 0.026 0.050
------- ------- ------- ------- ------- ---------
Total Distributions............................... 0.528 0.717 0.711 0.748 0.710 0.290
------- ------- ------- ------- ------- ---------
Net Asset Value, End of Period....................... $ 10.35 $ 10.71 $ 10.91 $ 10.08 $ 11.30 $ 10.76
======= ======== ======= ======= ======= =========
Total Return (1)..................................... 1.60% 4.90% 15.83% (4.30%) 12.63% 3.36%
Ratios/Supplemental Data
Net Assets, End of Period (000 omitted)............. $17,077 $17,777 $57,285 $52,439 $61,155 $ 45,401
Ratio of Expenses to Average Net Assets #........... 0.50% 0.36% 0.31% 0.31% 0.31% 0.30%
Ratio of Net Investment Income to Average
Net Assets #...................................... 6.30% 6.23% 6.56% 6.27% 6.15% 6.74%
Ratio of Expenses Without Waivers and Assumption of
Expenses to Average Net Assets #.................. 1.15% 0.87% 0.87% 0.92% 0.82% 0.73%
Ratio of Net Investment Income Without Waivers and
Assumptions of Expenses #......................... 5.65% 5.72% 6.00% 5.66% 5.64% 6.31%
Portfolio Turnover Rate.............................. 215% 122% 30% 17% 20% 3%
</TABLE>
- ---------------
(1) Total return figures do not include the effect of any sales load.
** In 1992, the Fund's fiscal year-end was changed from June 30 to October 31.
# Short periods have been annualized.
* Commencement of offering class of shares.
See notes to financial statements.
31
<PAGE> 34
VISTA MUTUAL FUNDS
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OF BENEFICIAL INTEREST
OUTSTANDING
Throughout each period indicated (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Short-Term Bond Fund
------------------------------------------------------------------------------------
Class A Institutional Class
------------------- ------------------------------------------------------------
11/01/96 05/06/96* 11/01/96 Year Ended
Through Through Through -----------------------------------------------
04/30/97 10/31/96 04/30/97 10/31/96 10/31/95 10/31/94 10/31/93
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period.... $10.10 $10.03 $ 10.12 $ 10.08 $ 9.91 $ 10.14 $ 10.26
------ ------- ------- ------- ------- ------- -------
Income from Investment Operations
Net Investment Income................ 0.240 0.262 0.253 0.561 0.542 0.465 0.489
Net Gains or (Losses) in Securities
(both realized and unrealized)...... (0.076) 0.072 (0.072) 0.035 0.168 (0.230) (0.073)
------ ------- ------- ------- ------- ------- -------
Total from Investment Operations..... 0.164 0.334 0.181 0.596 0.710 0.235 0.416
------ ------- ------- ------- ------- ------- -------
Less Distributions
Dividends from Net Investment
Income.............................. 0.234 0.264 0.251 0.556 0.542 0.465 0.536
Distributions from Capital Gains..... -- -- -- -- -- -- --
------ ------- ------- ------- ------- ------- -------
Total Distributions.................. 0.234 0.264 0.251 0.556 0.542 0.465 0.536
------ ------- ------- ------- ------- ------- -------
Net Asset Value, End of Period.......... $10.03 $10.10 $ 10.05 $ 10.12 $ 10.08 $ 9.91 $ 10.14
====== ======= ======= ======= ======= ======= =======
Total Return (1)........................ 2.13% 3.41% 2.33% 6.10% 7.37% 2.38% 4.73%
Ratios/Supplemental Data
Net Assets, End of Period (000
omitted)............................. $7,690 $9,416 $36,638 $43,242 $36,246 $35,987 $70,963
Ratio of Expenses to Average Net Assets
#.................................... 0.75% 0.75% 0.42% 0.35% 0.32% 0.31% .31%
Ratio of Net Investment Income to
Average Net Assets #................. 5.73% 5.28% 6.05% 5.59% 5.41% 4.59% 5.25%
Ratio of Expenses Without Waivers and
Assumption of Expenses to Average Net
Assets #............................. 1.30% 1.45% 0.92% 0.89% 0.90% 0.86% 0.76%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses
#.................................... 5.18% 4.58% 5.55% 5.05% 4.83% 4.05% 4.80%
Portfolio Turnover Rate................. 211% 158% 211% 158% 62% 44% 17%
<CAPTION>
Vista Short-Term
Bond Fund
-------------------
Institutional Class
-------------------
07/01/92**
Through
10/31/92
----------
<S> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period.... $ 10.28
-------
Income from Investment Operations
Net Investment Income................ 0.190
Net Gains or (Losses) in Securities
(both realized and unrealized)...... (0.010)
-------
Total from Investment Operations..... 0.180
-------
Less Distributions
Dividends from Net Investment
Income.............................. 0.200
Distributions from Capital Gains..... --
-------
Total Distributions.................. 0.200
-------
Net Asset Value, End of Period.......... $ 10.26
=======
Total Return (1)........................ 1.67%
Ratios/Supplemental Data
Net Assets, End of Period (000
omitted)............................. $ 81,327
Ratio of Expenses to Average Net Assets
#.................................... 0.30%
Ratio of Net Investment Income to
Average Net Assets #................. 5.66%
Ratio of Expenses Without Waivers and
Assumption of Expenses to Average Net
Assets #............................. 0.66%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses
#.................................... 5.30%
Portfolio Turnover Rate................. 0%
</TABLE>
- ---------------
(1) Total return figures do not include the effect of any sales load.
** In 1992, the Fund's fiscal year-end was changed from June 30 to October 31.
# Short periods have been annualized.
* Commencement of offering class of shares
See notes to financial statements.
32
<PAGE> 35
VISTA SERVICE CENTER
P.O. BOX 419392
KANSAS CITY, MO 64179
Investment Adviser, Administrator,
Shareholder and Fund Servicing Agent and Custodian
The Chase Manhattan Bank
Distributor
Vista Fund Distributors, Inc.
Transfer Agent
DST Systems, Inc.
Legal Counsel
Simpson Thacher & Bartlett
Independent Accountants
Price Waterhouse LLP
Vista Mutual Funds are distributed by Vista Fund Distributors, Inc., which is
unaffiliated with The Chase Manhattan Bank. Chase and its respective affiliates
receive compensation from the Vista Funds for providing investment advisory and
other services.
This report is submitted for the general information of the shareholders of the
funds. It is not authorized for distribution to prospective investors in the
funds unless preceded or accompanies 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.
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.
VBND-3-697
<PAGE> 36
VISTA
FAMILY OF MUTUAL FUNDS
MANAGED BY CHASE MANHATTAN
- ---------------------------------------------------------------
- - VISTA EUROPEAN FUND
(Class A and Class B Shares)
- - VISTA SOUTHEAST ASIAN FUND
(Class A and Class B Shares)
- - VISTA JAPAN FUND
(Class A and Class B Shares)
- - VISTA INTERNATIONAL EQUITY FUND
(Class A and Class B Shares)
- ---------------------------------------------------------------
- --------------------------------------------------------------------------------
SEMIANNUAL REPORT
APRIL 30, 1997
(UNAUDITED)
<PAGE> 37
CONTENTS
Chairman's Letter 1
Fund Commentaries 2
Portfolio of Investments 10
Notes to Financial Statements 25
Per Share Data 34
<PAGE> 38
- --------------------------------------------------------------------------------
Vista is in the process of redesigning your Shareholder Reports to include even
more information about your fund, its current investment strategy and how it is
performing.
- --------------------------------------------------------------------------------
Watch for the completed redesign when you receive your next Annual Report.
May 23, 1997
Dear Shareholder:
We are pleased to present the semi-annual reports for the following Vista
International Funds for the six months ended April 30, 1997:
<TABLE>
<S> <C>
- International Equity Fund - Japan Fund
- European Fund - Southeast Asian Fund
</TABLE>
EUROPEAN MARKETS FORGE AHEAD WHILE JAPANESE STOCKS FALTER
Global equity markets diverged on hemispheric lines during the six months ended
April 30, 1997, with markets in the United States, Europe and Latin America
posting robust gains while those in Japan and most of Southeast Asia turning in
negative performance.
As measured by the MSCI Europe Index, European equity markets had a dollar-based
total return of 11.96% for the six-month period as investors responded
positively to generally lower interest rates and improving corporate
performance. Despite low interest rates in Japan, however, the situation was far
different as the stock market continued to suffer from a lack of widespread
economic growth and concerns over new taxes. For the period, the Tokyo SE
(Topix) 1st Section declined (-7.05%) sharply.
LATIN AMERICAN EQUITY RETURNS AMONG WORLD'S BEST
Latin American equity markets were clearly world beaters during the reporting
period, with the MSCI Latin American Index gaining 25.42% as the Brazilian
market led the way. These high returns were not matched in the emerging markets
of Southeast Asia, however, as concerns about US interest rates held most
regional markets down.
While it is impossible to predict the performance of these international markets
over the short term, it's clear that more and more of the world's population is
embracing capitalist enterprise and the financial markets. This is creating
excellent long-term prospects for diversified investors who are able to tolerate
occasional periods of volatility.
We appreciate that you have chosen Vista to manage your international
investments and look forward to serving your investment needs for many years to
come.
Sincerely,
/s/ Fergus Reid
Fergus Reid
Chairman
- --------------------------------------------------------------------------------
INVESTMENTS IN THE FUNDS ARE NOT DEPOSITS OF, OR GUARANTEED OR ENDORSED BY, THE
CHASE MANHATTAN BANK, AND THE SHARES ARE NOT INSURED BY THE FDIC, FEDERAL
RESERVE BOARD OR ANY OTHER GOVERNMENT AGENCY. INVESTMENTS IN MUTUAL FUNDS
INVOLVE RISK, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED.
- --------------------------------------------------------------------------------
<PAGE> 39
VISTA EUROPEAN FUND
Vista European Fund, which seeks long-term growth of capital by investing
primarily in the common stocks of established companies in Western Europe,
provided shareholders with a total return of 13.37% (Class A Shares, without
sales charges) for the six months ended April 30, 1997.
Throughout the reporting period, European markets were supported by improvements
in economic growth, a continuation of relaxed monetary policies, low inflation
and further corporate restructuring that led to many positive earnings
surprises. The Fund's management team was able to take advantage of these trends
to a large extent, outperforming its benchmark while overcoming the effects of a
stronger dollar.
FUND BEGINS REDUCING FINANCIAL SECTOR HOLDINGS
The Fund began the period heavily weighted in financial and other interest-rate
sensitive sectors. This positioning resulted from the management team's positive
view of prospects for European Monetary Union and the downward pressure on
interest rates as countries sought to meet the Maastricht criteria. However, as
signs of stronger economic growth began to appear in late 1996 and early 1997,
the management team took profits on its interest rate-sensitive holdings in
favor of investments in companies it believed most likely to benefit from faster
growth.
Throughout the reporting period, the Fund maintained its emphasis on
restructuring companies, especially those with the potential to provide positive
earnings surprises. This focus proved beneficial as the general trend towards
restructuring picked up steam throughout the continent, especially in France and
Germany. The management team considers restructuring to be representative of a
sea change in the way European companies do business and, therefore, intends to
maintain a restructuring emphasis for the foreseeable future.
FUND EFFECTIVELY MANAGES CURRENCY RISK
Given that the Fund is U.S. dollar denominated, but invests primarily in
non-dollar securities, the growing strength of the dollar relative to most
European currencies was of primary importance to the management team. In
understanding the full impact of the rising dollar, remember that while it cuts
into the gains of U.S. investors after the effects of currency conversion are
taken into account, it also makes the American-bound exports of companies in
which the Fund invests more competitive. The management team's decision to use
currency hedges was an important factor in the Fund's performance in early 1997,
as were investments in companies it believed would benefit through exports.
As we've said before, this is an exciting time in Europe. Although there will
certainly be periods of uncertainty on the way to monetary union and the full
restructuring of European business, your management team maintains a bullish
outlook on the future and intends to help you profit from it.
2
<PAGE> 40
VISTA EUROPEAN FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF 4/30/97
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS A SHARES SALES CHARGE SALES CHARGE
------------ ------------
<S> <C> <C>
One Year..................... 22.55% 16.73%
Since Inception (11/2/95).... 23.38% 19.43%
<CAPTION>
WITHOUT WITH
CLASS B SHARES CDSC CDSC*
------------ ------------
<S> <C> <C>
One Year..................... 21.61% 16.61%
Since Inception (11/3/95).... 22.50% 20.07%
</TABLE>
* Assumes a 5% CDSC for the one year period and a 4% CDSC for the period since
inception.
GROWTH OF $10,000
<TABLE>
<CAPTION>
LIPPER
MEASUREMENT PERIOD VISTA MSCI EUROPE EUROPEAN FUNDS
(FISCAL YEAR COVERED) EUROPEAN FUND INDEX AVERAGE
<S> <C> <C> <C>
10/31/95 9525.00 10000.00 10000.00
11/30/95 9544.05 10075.00 9926.00
12/31/95 9699.31 10397.40 10111.62
01/31/96 9766.00 10469.14 10283.51
02/29/96 10118.53 10663.87 10611.56
03/31/96 10442.48 10795.03 10824.85
04/30/96 10642.56 10877.08 11007.79
05/31/96 10814.06 10965.18 11286.29
06/30/96 11216.13 11090.18 11383.35
07/31/96 10832.35 10954.88 11089.66
08/31/96 11081.81 11283.53 11414.59
09/30/96 11340.86 11525.00 11575.53
10/31/96 11503.97 11795.83 11791.99
11/30/96 12060.46 12397.42 12317.92
12/31/96 12425.06 11542.00 12569.20
01/31/97 12581.94 11576.63 12672.27
02/28/97 12864.33 11732.91 12845.88
03/31/97 13125.80 12115.40 13136.20
04/30/97 13042.13 12058.46 12937.84
</TABLE>
Past performance is no guarantee of future results. Investment returns and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than the original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
shares of Vista European Fund, the Lipper European Equity Funds Average and the
MSCI Europe Index from 11/30/95 through 4/30/97. The Fund's performance includes
a 4.75% sales charge and assumes the reinvestment of all dividends and capital
gains. Also, certain fees were waived during the period. Had they not been
waived, total returns would have been lower.
The Lipper European Equity Funds Average represents the average performance of a
universe of 69 actively managed mutual funds that invest in European stocks.
Lipper is an independent mutual fund performance monitor whose results are based
on total return and do not reflect a sales charge.
The MSCI Europe Index is unmanaged and is a replica (or model) of the
performance of the European equity markets; return figures assume the
reinvestment of dividends. An individual cannot invest in the index.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting and
taxation policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the United
States and other nations.
3
<PAGE> 41
VISTA SOUTHEAST ASIAN FUND
Vista Southeast Asian Fund, which seeks long-term growth of capital by investing
in the stocks of companies located in the Pacific Rim (excluding Japan), had a
total return of -0.04% (Class A shares, without sales charges) for the six-month
period ended April 30, 1997.
FUND FOCUSES ON COUNTRY SELECTION
The Fund benefited throughout the reporting period from a very careful approach
to country selection. Hong Kong and Malaysian companies, the region's best
performers, were overweighted during most of the period, although holdings in
Malaysia were reduced during the first four months of 1997. Perhaps more
importantly, the Fund avoided investments in the poorly-performing Thailand
market due to concern over that country's fiscal situation.
Another major factor in many Southeast Asian markets, during the latter part of
the reporting period, was the volatility in U.S. interest rates. With many of
these countries' rates tied closely to those in the US, the management team
believes a sustained advance may require a clarification of US interest rate
direction.
The management team is confident that the impending Chinese takeover of Hong
Kong, the region's largest market, should be relatively smooth given China's
stated desire to have Hong Kong retain its position as a center of global
commerce. In fact, the Fund ended the reporting period overweight in Hong Kong
based on attractive price-to-earnings growth characteristics.
SOUTHEAST ASIAN MARKETS NO LONGER MOVE IN TANDEM
The major lesson for investors during the period was in the performance
divergence among markets in the region. Gone are the days when Southeast Asian
markets rose and fell together, as countries' differing economic policies and
favored industries now cause their markets to perform in unique ways. This
divergence places a premium on the Fund's disciplined approach to country and
security selection.
4
<PAGE> 42
VISTA SOUTHEAST ASIAN FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF 4/30/97
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS A SHARES SALES CHARGE SALES CHARGE
------------ ------------
<S> <C> <C>
One Year..................... -0.87% -5.58%
Since Inception (11/2/95).... 12.74% 9.13%
<CAPTION>
WITHOUT WITH
CLASS B SHARES CDSC CDSC*
------------ ------------
<S> <C> <C>
One Year..................... -1.63% -6.30%
Since Inception (11/3/95).... 11.91% 9.37%
</TABLE>
* Assumes a 5% CDSC for the one year period and a 4% CDSC for the period since
inception.
GROWTH OF $10,000
<TABLE>
<CAPTION>
LIPPER
VISTA MSCI PACIFIC PACIFIC
MEASUREMENT PERIOD SOUTHEAST ASIAN EX-JAPAN EX-JAPAN
(FISCAL YEAR COVERED) FUND INDEX FUNDS AVG.
<S> <C> <C> <C>
10/31/95 9525.00 10000.00 10000.00
11/30/95 9620.25 9857.60 9765.00
12/31/95 10172.70 10279.00 10122.40
01/31/96 11458.58 10966.01 10950.41
02/29/96 11315.70 11130.84 10979.98
03/31/96 11229.98 11191.93 10889.94
04/30/96 11496.68 11612.07 11170.90
05/31/96 11601.45 11478.02 11141.86
06/30/96 11296.65 11286.53 10866.65
07/31/96 10687.05 10547.05 10184.23
08/31/96 11163.30 10934.68 10467.35
09/30/96 11401.43 11088.66 10612.85
10/31/96 11401.43 11011.19 10500.35
11/30/96 12115.80 11511.62 11049.52
12/31/96 12039.60 11475.14 11145.65
01/31/97 12049.64 11584.79 11288.31
02/28/97 12180.18 11706.44 11397.81
03/31/97 11597.78 11597.78 10850.71
04/30/97 11396.95 11090.12 10730.27
</TABLE>
Past performance is no guarantee of future results. Investment returns and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than the original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
shares of Vista Southeast Asian Fund, the Lipper Pacific Ex-Japan Funds Average
and the MSCI Pacific Ex-Japan Index from 11/30/95 through 4/30/97. The Fund's
performance includes a 4.75% sales charge and assumes the reinvestment of all
dividends and capital gains. Also, certain fees were waived during the period.
Had they not been waived, total returns would have been lower.
The Lipper Pacific Ex-Japan Funds Average represents the average performance of
a universe of 86 actively managed mutual funds that invest in Asian stock
markets with the exception of Japan. Lipper is an independent mutual fund
performance monitor whose results are based on total return and do not reflect a
sales charge.
The MSCI Pacific Ex-Japan Index is unmanaged and is a replica (or model) of the
performance of the Pacific region equity markets, excluding Japan. Total return
figures assume the reinvestment of dividends. An individual cannot invest in the
Index.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting and
taxation policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the United
States and other nations.
5
<PAGE> 43
VISTA JAPAN FUND
Vista Japan Fund, which seeks long-term growth of capital by investing in the
stocks of companies located in Japan, provided shareholders with a total return
of 0.82% for the six months ended April 30, 1997 (Class A shares, without sales
charges).
OUTSTANDING PERFORMANCE IN A TOUGH MARKET
While the Fund's returns may appear minimal in comparison to those achieved
elsewhere in the world, it is quite impressive when one considers that the broad
Japanese market had a return of -7.05%, as measured by the Tokyo SE (Topix) 1st
Section Index.
This tremendous outperformance was achieved for two reasons. First, the
management team correctly anticipated that the yen would continue to weaken
against the dollar. It, therefore, made extensive use of currency hedging to
offset the negative effects of the falling yen on U.S. investors. The yen also
played a part in the second key performance driver, which was the management
team's focus on large Japanese exporting companies that tend to benefit when the
yen is relatively weak.
JAPANESE STOCKS FINALLY SHOW SIGNS OF A TURNAROUND
As the reporting period ended, Japanese stocks were finally beginning to show
signs of the long-awaited turnaround. However, the management team remains
highly cautious given its belief that the Japanese market continues to be caught
in a one step forward, two steps back mode and will ultimately require sustained
economic growth for a general advance.
Given this cautious view, the Fund ended the reporting period with a
broadly-diversified portfolio of Japanese securities and a significant amount of
protective currency and other hedges. Among the signs the management team is
looking for, before taking a more bullish stance, is widespread participation in
the profits currently being earned only by the largest companies.
Despite the fact that Japan's equity markets have performed poorly for the past
few years, the management team continues to be attracted by Japan's unique
strengths: the world's second-largest economy, strong corporations, a
highly-educated population and its unparalleled access to the world's
fastest-growing economies.
6
<PAGE> 44
VISTA JAPAN FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF 4/30/97
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS A SHARES SALES CHARGE SALES CHARGE
------------ ------------
<S> <C> <C>
One Year..................... -14.90% -18.94%
Since Inception (11/2/95).... -3.39% -6.48%
<CAPTION>
WITHOUT WITH
CLASS B SHARES CDSC CDSC*
------------ ------------
<S> <C> <C>
One Year..................... -15.58% -19.73%
Since Inception (11/3/95).... -4.08% -6.62%
</TABLE>
* Assumes a 5% CDSC for the one year period and a 4% CDSC for the period since
inception.
GROWTH OF $10,000
<TABLE>
<CAPTION>
TOKYO SE LIPPER JAPAN
MEASUREMENT PERIOD VISTA JAPAN (TOPIX) 1ST EQUITY FUNDS
(FISCAL YEAR COVERED) FUND SECTION AVG.
<S> <C> <C> <C>
10/31/95 9525.00 10000.00 10000.00
11/30/95 9525.00 10577.60 10261.00
12/31/95 9782.18 11082.05 10688.88
01/31/96 9906.00 10931.96 10722.02
02/29/96 9705.98 10750.60 10524.73
03/31/96 10144.13 11104.98 10817.32
04/30/96 10629.90 11844.64 11502.06
05/31/96 10163.18 11264.27 11085.68
06/30/96 10287.00 11312.44 11234.23
07/31/96 9801.23 10756.71 10743.30
08/31/96 9286.88 10297.84 10313.56
09/30/96 9572.63 10588.11 10521.90
10/31/96 8972.55 9877.45 9909.52
11/30/96 9067.80 9950.23 9916.46
12/31/96 8696.33 9182.20 9465.26
01/31/97 8560.14 8191.43 8883.15
02/28/97 8861.69 8348.34 8989.75
03/31/97 8725.51 8036.53 8810.85
04/30/97 9046.51 8227.80 9108.66
</TABLE>
Past performance is no guarantee of future results. Investment returns and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than the original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
shares of Vista Japan Fund, the Lipper Japan Equity Funds Average and the Tokyo
SE (Topix) 1st Section from 11/30/95 through 4/30/97. The Fund's performance
includes a 4.75% sales charge and
assumes the reinvestment of all dividends and capital gains. Also, certain fees
were waived during the period. Had they not been waived, total returns would
have been lower.
The Lipper Japan Equity Funds Average represents the average performance of a
universe of 29 actively managed mutual funds that invest primarily in Japanese
stocks. Lipper is an independent mutual fund performance monitor whose results
are based on total return and do not reflect a sales charge.
The Topix, also known as the Tokyo Price Index, is an unmanaged
capitalization-weighted index of all the companies listed on the First Section
of the Tokyo Stock Exchange. The index is supplemented by subindexes of 33
industry sectors and excludes temporary issues and preferred stocks. An
individual cannot invest in the Index.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting and
taxation policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the United
States and other nations.
7
<PAGE> 45
VISTA INTERNATIONAL EQUITY FUND
Vista International Equity Fund, which seeks long-term growth of capital by
investing in the common stocks of established overseas companies, provided
shareholders with a total return of 4.55% (Class A shares, without sales
charges) for the six months ended April 30, 1997.
FUND MAINTAINS ITS OVERWEIGHTING IN EUROPE
During a generally positive period for international equities, the Fund was able
to outperform its benchmark by overweighting European equities while limiting
exposure to the poorly-performing Japanese market.
Within Europe, markets were bolstered by improvements in economic growth, a
continuation of relaxed monetary policies, low inflation and further corporate
restructuring that led to many positive earnings surprises. The restructuring
theme, in particular, remained evident in the Fund's holdings and was beneficial
to overall performance.
Moving forward, the management team believes that the resumption of strong
economic growth will be essential for progress in the Japanese equity markets.
Until such growth is evident, the Fund will remain underweight in the country's
securities.
MANAGEMENT TEAM CONTINUES TO BUILD POSITIONS IN LATIN AMERICA AND SOUTHEAST ASIA
With Latin American markets performing well, the Fund added to its positions in
the region. In doing so, it focused on companies the management team believes
will benefit from the ongoing process of economic reform. A slightly-overweight
position was also maintained in Southeast Asia, with specific emphasis on Hong
Kong-based companies, which the management team believes are well-positioned on
a valuation basis. In both Latin America and Southeast Asia, a high degree of
selectivity is being applied to both country and individual security decisions.
The management team believes that international markets offer long-term U.S.
investors significant opportunities for capital appreciation. Using Vista's
disciplined international stock management system, which includes tools that
help smooth out the effects of currency fluctuations, the Fund will continue to
be a source for a diversified portfolio of high-quality overseas investments.
8
<PAGE> 46
VISTA INTERNATIONAL EQUITY FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF 4/30/97
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS A SHARES SALES CHARGE SALES CHARGE
------------ ------------
<S> <C> <C>
One Year..................... 1.80% -4.57%
Since Inception (12/31/92)... 6.67% 5.48%
<CAPTION>
WITHOUT WITH
CLASS B SHARES CDSC CDSC*
------------ ------------
<S> <C> <C>
One Year..................... -0.35% -5.12%
Since Inception (12/31/92)... 6.20% 5.82%
</TABLE>
* Assumes a 5% CDSC for the one year period and a 2% CDSC for the period since
inception.
GROWTH OF $10,000
<TABLE>
<CAPTION>
VISTA LIPPER
MEASUREMENT PERIOD INTERNATIONAL INTERNATIONAL MSCI EAFE
(FISCAL YEAR COVERED) EQUITY FUND FUNDS AVERAGE INDEX
<S> <C> <C> <C>
12/31/92 9525.00 10000.00 10000.00
01/31/93 9458.33 10035.00 10002.00
02/28/93 9601.20 10262.79 10307.06
03/31/93 9906.00 10845.72 11208.93
04/30/93 10382.25 11396.68 12276.02
05/31/93 10753.73 11637.15 12538.73
06/30/93 10248.90 11389.28 12345.63
07/31/93 10572.75 11746.91 12780.20
08/31/93 11249.03 12477.56 13472.88
09/30/93 11153.78 12407.69 13172.44
10/31/93 11258.55 12947.42 13580.78
11/30/93 10658.48 12424.35 12396.54
12/31/93 11567.16 13583.54 12294.05
01/31/94 12284.73 14423.00 14421.38
02/28/94 11940.29 14110.02 14383.89
03/31/94 11461.92 13479.30 13766.82
04/30/94 11605.43 13820.33 14354.66
05/31/94 11461.92 13774.72 14275.71
06/30/94 11366.24 13631.47 14481.28
07/31/94 11634.13 14002.24 14623.20
08/31/94 11921.16 14416.71 14972.69
09/30/94 11576.73 14057.73 14504.05
10/31/94 11777.65 14330.45 14989.93
11/30/94 11146.19 13626.83 14273.41
12/31/94 11066.78 13490.56 14366.19
01/31/95 10330.93 12830.87 13817.40
02/28/95 10418.07 12848.83 13781.48
03/31/95 10844.09 13270.28 14645.58
04/30/95 11095.82 13692.27 15200.64
05/31/95 11221.69 13801.81 15022.80
06/30/95 11231.38 13800.43 14762.90
07/31/95 11821.99 14540.13 15685.58
08/31/95 11686.44 14268.23 15091.10
09/30/95 11821.99 14482.26 15389.90
10/31/95 11638.03 14182.47 14980.53
11/30/95 11608.98 14325.72 15401.48
12/31/95 11718.39 14759.78 16025.24
01/31/96 11893.58 15091.88 16094.15
02/29/96 11883.83 15147.72 16152.09
03/31/96 12166.10 15403.72 16499.36
04/30/96 12574.88 15884.31 16982.79
05/31/96 12438.62 15836.66 16673.71
06/30/96 12565.15 15941.18 16772.08
07/31/96 11893.58 15348.17 16285.69
08/31/96 11883.85 15518.53 16324.78
09/30/96 12205.04 15850.63 16762.28
10/31/96 12049.31 15738.09 16594.66
11/30/96 12506.75 16405.39 17258.44
12/31/96 12425.00 16456.24 17040.99
01/31/97 12333.41 16401.94 16447.96
02/28/97 12679.40 16633.20 16721.00
03/31/97 12659.05 16669.80 16786.21
04/30/97 12597.99 16703.14 16878.53
</TABLE>
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 Vista International Equity Fund, the Lipper International Funds
Average and the MSCI EAFE Index from 12/31/92 to 4/30/97. The Fund's performance
includes a 4.75% sales charge and assumes the reinvestment of all dividends and
capital gains. Also, certain fees were waived during the period. Had they not
been waived, total returns would have been lower. The Fund commenced operations
on 12/31/92. Class B Shares were introduced on 11/15/93. Investors should note
that information presented for Class B prior to their introduction is based upon
historical expenses of the predecessor Class A Shares, which are lower than the
actual expenses of the Class B Shares. Additionally, annualized figures have
been restated to reflect the maximum 5% contingent deferred sales charge that
applies to the Fund's B Shares.
The Lipper International Funds Average represents the average performance of a
universe of 375 actively managed international stock funds. Lipper is an
independent mutual fund performance monitor whose results are based on total
return and do not reflect a sales charge.
The MSCI EAFE (Europe, Australia, Far East) Index is unmanaged and is a replica
(or model) of the performance of the world's equity markets, excluding the U.S.
and Canada. An individual cannot invest in the Index.
International investing involves special risks. Changes in currency exchange
rates and differences in accounting and taxation policies outside the U.S. can
raise or lower returns. Also, some overseas markets may not be as politically
and economically stable as the U.S. or other nations.
9
<PAGE> 47
VISTA EUROPEAN FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- -------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- 93.0%
- -------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- 93.0%
------------------------
AUSTRIA -- 2.7%
Oil & Gas -- 1.3%
1,326 OMV AG $ 144,704
Steel -- 1.4%
2,255 Boehler -- Uddeholm AG, 162,637
------------
TOTAL AUSTRIA 307,341
------------
FRANCE -- 17.0%
Automotive -- 1.0%
703 Equipements et Composants pour l'Industrie Automobile 110,575
Banking -- 1.1%
2,980 Banque Nationale de Paris 127,137
Computers/Computer Hardware -- 3.5%
60,000 Compagnie des Machines Bull SA * 392,032
Computer Software -- 2.6%
3,600 Cap Gemini Sogeti SA * 218,046
599 Group Axime * 72,048
Consumer Products -- 0.8%
3,850 Moulinex * 88,988
Financial Services -- 1.6%
1,500 Cetelem Group 174,766
Food/Beverage Products -- 1.2%
5,320 Remy Cointreau 136,820
Insurance -- 0.9%
3,230 AGF (Assurances Generales de France) 105,095
Oil & Gas -- 0.9%
1,192 Total SA, B Shares 98,850
Pharmaceuticals -- 2.0%
6,800 Rhone-Poulenc, Class A 228,711
Utilities -- 1.4%
1,096 Compagnie Generale des Eaus 152,672
------------
TOTAL FRANCE 1,905,740
------------
GERMANY -- 11.0%
Automotive -- 2.2%
3,320 Daimler-Benz AG * 246,556
Capital Goods -- 1.4%
398 Mannesmann AG 156,519
</TABLE>
See notes to financial statements.
10
<PAGE> 48
VISTA EUROPEAN FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- -------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- -------------------------------------------------------------------------------------------
<C> <S> <C>
GERMANY (CONTINUED)
Chemicals -- 1.8%
5,180 BASF AG $ 198,685
Consumer Products -- 4.1%
1,950 Adidas AG 203,258
7,500 Puma AG 253,369
Health Care/Health Care Services -- 1.5%
2,000 Fresenius Medical Care AG * 175,207
------------
TOTAL GERMANY 1,233,594
------------
IRELAND -- 0.7%
Insurance -- 0.7%
15,000 Irish Life Plc. 74,322
------------
ITALY -- 5.9%
Banking -- 1.3%
104,000 Credito Italiano SPA 145,805
Consumer Products -- 1.1%
3,000 Fila Holding, SPA, ADR 129,750
Retailing -- 1.4%
2,200 Gucci Group NV (NY Registered Shares) * 153,216
Telecommunications -- 2.1%
75,000 Telecom Italia Mobile SpA 235,925
------------
TOTAL ITALY 664,696
------------
NETHERLANDS -- 5.9%
Chemicals -- 0.7%
592 Akzo Nobel 76,275
Computer Software -- 2.5%
5,400 Baan Company, N.V. * 283,013
Food/Beverage Products -- 0.2%
500 CSM NV, N.R. Certificate 28,720
Printing & Publishing -- 1.2%
6,420 Verenigde Nederlandse Uitgeversbedrijvan Verenigd Bezit 132,809
(VNU)
Retailing -- 1.3%
2,050 Gucci Group NV ADR 142,219
------------
TOTAL NETHERLANDS 663,036
------------
</TABLE>
See notes to financial statements.
11
<PAGE> 49
VISTA EUROPEAN FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- -----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- -----------------------------------------------------------------------------------------
<C> <S> <C>
PORTUGAL -- 6.0%
Telecommunications -- 6.0%
5,850 Portugal Telecom SA $ 215,656
5,300 Telecel-Comunicacaoes Pessoais, SA * 456,652
------------
TOTAL PORTUGAL 672,308
------------
SPAIN -- 2.2%
Banking -- 2.2%
3,200 Banco Santander SA 240,972
------------
SWEDEN -- 5.7%
Banking -- 3.8%
27,300 Skandinaviska Enskilda Banken, Class A 278,376
8,100 Sparbanken Sverige AB, Swedbank, A Shares 144,542
Engineering Services -- 1.9%
180 ABB AG 218,062
------------
TOTAL SWEDEN 640,980
------------
SWITZERLAND -- 11.9%
Pharmaceuticals -- 11.9%
440 Ares-Serono Group, Class B 590,673
564 Novartis AG (Registered) 743,356
------------
TOTAL SWITZERLAND 1,334,029
------------
UNITED KINGDOM -- 24.0%
Aerospace -- 1.3%
6,643 British Aerospace PLC 141,312
Airport Services -- 1.1%
15,505 British Airport Authority PLC 128,308
Business Services -- 2.3%
11,000 Delphi Group PLC 141,896
51,900 Hambro Countrywide PLC 108,635
Construction/Construction Materials -- 2.6%
11,900 Blue Circle Industries, PLC 80,904
29,600 Caradon PLC 119,352
12,064 Meyer International PLC 85,543
Diversified -- 1.7%
35,615 Cookson Group PLC 125,402
9,034 McKechnie Group PLC 72,413
</TABLE>
See notes to financial statements.
12
<PAGE> 50
VISTA EUROPEAN FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- -----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- -----------------------------------------------------------------------------------------
<C> <S> <C>
UNITED KINGDOM (CONTINUED)
Engineering Services -- 2.3%
76,400 APV PLC $ 107,851
66,763 Senior Engineering Group PLC 142,995
Food/Beverage Products -- 1.0%
15,388 Allied Domecq PLC 108,613
Hotels/Other Lodging -- 2.4%
13,523 Greenalls Group PLC 109,493
62,436 Jarvis Hotels PLC 157,028
Multi-Media -- 0.7%
9,100 Carlton Communications PLC 74,567
Oil & Gas -- 2.0%
5,300 British-Borneo Petro Syndicate PLC 110,507
6,466 Shell Transport & Trading PLC 114,465
Real Estate Investment Trust -- 0.6%
53,674 TBI PLC 69,673
Retailing -- 2.4%
12,211 Boots Company, PLC 137,506
13,277 Great Universal Stores PLC 137,877
Telecommunications -- 1.7%
23,500 British Telecommunications PLC 172,352
4,700 Vodafone Group PLC 21,010
Utilities -- 1.9%
24,517 National Power PLC 211,636
------------
TOTAL UNITED KINGDOM 2,679,338
------------
TOTAL COMMON STOCK (COST $9,735,537) 10,416,356
------------
RIGHTS -- 0.0%
-------------------
GERMANY -- 0.0%
3,320 Daimler-Benz AG, Rights, Expire 05/13/97 (Cost $0) * 288
- ---- ------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 93.0% $ 10,416,644
(COST $9,735,537)
- -----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
13
<PAGE> 51
VISTA SOUTHEAST ASIAN FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- 89.8%
- ----------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- 88.4%
--------------------------
AUSTRALIA -- 16.1%
Broadcasting -- 4.1%
115,000 News Corp. Ltd. $ 531,239
Diversified -- 3.4%
293,000 Futuris Corp. Ltd. 442,007
Entertainment/Leisure -- 2.6%
68,000 TABCORP Holdings Ltd. 336,713
Food/Beverage Products -- 3.4%
16,000 Coca-Cola Amatil, Ltd. 183,328
128,000 Foster's Brewing Group, Ltd. 264,130
Oil & Gas -- 2.6%
345,000 Energy Equity Corp. Ltd. * 339,777
------------
TOTAL AUSTRALIA 2,097,194
------------
BERMUDA -- 1.2%
Diversified -- 1.2%
28,000 Jardine Matheson Holdings Ltd. 154,000
------------
CHINA -- 7.2%
Automotive -- 2.1%
508,000 Qingling Motors Company Ltd., Class H 278,706
Construction (Highway Development) -- 2.4%
950,000 Shenzhen Expressway Co., Class H * 312,721
Shipping/Transportation -- 2.7%
748,000 Guangshen Railway Co., Ltd., Class H 357,270
------------
TOTAL CHINA 948,697
------------
HONG KONG -- 34.3%
Banking -- 6.4%
18,000 Dao Heng Bank Group, Ltd. 85,509
75,000 Guoco Group Ltd 356,289
15,600 HSBC Holdings PLC 394,706
Diversified -- 13.1%
51,000 Citic Pacific Ltd. 275,853
298,000 First Pacific Company Ltd. 355,837
446,000 Guangdong Investments, Ltd. 417,413
53,000 Hutchison Whampoa 393,403
34,000 Swire Pacific, Ltd, Class A 262,247
</TABLE>
See notes to financial statements.
14
<PAGE> 52
VISTA SOUTHEAST ASIAN FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
HONG KONG (CONTINUED)
Real Estate -- 14.8%
38,000 Cheung Kong Holdings, Ltd. $ 333,569
84,000 China Resources Enterprises Ltd. 232,053
132 Henderson China Holding Ltd. 227
25,000 Henderson Land Development Company, Ltd. 210,579
221,600 HKR International, Ltd. 273,191
60,000 Hongkong Land Holdings, Ltd. 124,800
81,000 Hysan Development Co., Ltd. 223,765
52,000 New World Development Company, Ltd. * 300,057
116,000 Wheelock & Co., Ltd. 241,089
------------
TOTAL HONG KONG 4,480,587
------------
INDONESIA -- 2.4%
Consumer Products -- 0.7%
11,000 PT Gudang Garam (Foreign) 46,173
14,500 PT Hanjaya Mandala Sampoerna (Foreign) 58,328
Metals/Mining -- 0.7%
52,000 PT Tambang Timah (Foreign) 85,597
Telecommunications -- 1.0%
87,000 PT Telekomunikasi Indonesia (Foreign) 126,204
------------
TOTAL INDONESIA 316,302
------------
MALAYSIA -- 13.8%
Agricultural Production/Services -- 2.6%
60,000 Kumpulan Guthrie Bhd 92,750
62,000 Malakoff Bhd 247,014
Automotive -- 1.6%
16,000 Perusahann Otomobil Nasional Bhd. 95,618
64,000 Tractors Malaysia Holdings Bhd. 109,741
Construction -- 2.3%
85,000 Sunway Building Technology Bhd 306,476
Construction Materials -- 2.9%
64,000 Kedah Cement Holdings, Bhd. 99,443
118,000 Sungei Way Holdings Bhd. 270,321
Diversified -- 2.7%
172,000 Renong Bhd 235,731
16,000 United Engineers Ltd. 113,467
Paper/Forest Products -- 1.0%
34,000 Malaysian Pacific Industries Bhd. 135,459
</TABLE>
See notes to financial statements.
15
<PAGE> 53
VISTA SOUTHEAST ASIAN FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ---------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ---------------------------------------------------------------------------------------
<C> <S> <C>
MALAYSIA (CONTINUED)
Utilities -- 0.7%
20,000 Tenaga Nasional Bhd. $ 92,431
------------
TOTAL MALAYSIA 1,798,451
------------
PHILIPPINES -- 0.6%
Construction -- 0.5%
111,700 DMCI Holdings Inc. * 57,184
Real Estate -- 0.1%
70,600 Filinvest Land, Inc. * 16,599
------------
TOTAL PHILIPPINES 73,783
------------
SINGAPORE -- 6.6%
Banking -- 1.6%
8,000 Development Bank of Singapore, Ltd. (Foreign) 95,138
12,000 United Overseas Bank Ltd., (Foreign) 112,838
Food/Beverage Products -- 0.5%
10,000 Fraser & Neave Ltd. 72,598
Real Estate Investment Trust -- 4.5%
27,000 City Developments, Ltd. 218,417
91,000 DBS Land, Ltd. 294,458
16,000 Singapore Land Ltd. 74,672
------------
TOTAL SINGAPORE 868,121
------------
SOUTH KOREA -- 4.1%
Construction -- 0.7%
4,590 Hyundai Engineering & Construction Co. * 92,109
Electronics/Electrical Equipment -- 0.7%
8,400 Samsung Corp. 96,054
Health Care/Health Care Services -- 0.8%
1,000 Medison Co., Ltd. 98,655
Machinery & Engineering Equipment -- 1.0%
9,000 LG Cable & Machinery 127,130
Telecommunications -- 0.9%
900 Sungmi Telecom Electronics Co. 121,076
------------
TOTAL SOUTH KOREA 535,024
------------
THAILAND -- 2.1%
Food/Beverage Products -- 0.5%
19,000 Thai Theparos Food Product Public Co. Ltd. (Foreign) 59,636
</TABLE>
See notes to financial statements.
16
<PAGE> 54
VISTA SOUTHEAST ASIAN FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
THAILAND (CONTINUED)
Metals/Mining -- 0.6%
5,100 Banpu Public Co., Ltd. (Foreign) $ 82,771
Oil & Gas -- 0.8%
8,300 PTT Exploration and Production Public Co., Ltd. 106,114
(Foreign)
Printing & Publishing -- 0.2%
5,000 Siam Sport Syndicate Public Co., Ltd. (Foreign) 22,392
------------
TOTAL THAILAND 270,913
------------
TOTAL COMMON STOCK (COST $11,517,043) 11,543,072
------------
WARRANTS -- 1.4%
-----------------
GERMANY -- 0.2%
200,000 Deutsche Bank AG, Expires 07/10/97 21,171
------------
MALAYSIA -- 1.2%
80,000 Sunway Building Technology, Bhd., Expires 07/30/01 156,176
------------
TOTAL WARRANTS (COST $129,304) 177,347
------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS 11,720,419
(COST $11,646,347)
------------------------------------------------------------------------------------
<CAPTION>
Principal
Amount
(USD)
- -----------------------------------------------------------------------------------------
<CAPTION>
SHORT-TERM INVESTMENTS -- 0.6%
- -----------------------------------------------------------------------------------------
<C> <S> <C>
U.S. TREASURY SECURITIES -- 0.6%
----------------------------------
$ 85,000 U.S. Treasury Bill, 4.97%, 06/12/97 (Cost $84,496) 84,496
</TABLE>
PURCHASED PUT OPTION -- 0.1%
<TABLE>
<CAPTION>
Number of Strike
Contracts Description Price
- --------- ------------------------------------------------- -----------
<C> <C> <S> <C>
35 Hang Seng Index, 05/30/97 12,000 HKD 15,362
(Cost 21,458)
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 90.5% $ 11,820,277
(COST $11,752,301)
- -----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
17
<PAGE> 55
VISTA JAPAN FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- -----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- 73.7%
- -----------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- 73.7%
----------------------
JAPAN -- 73.7%
AUTOMOTIVE -- 2.2%
14,000 Mazda Motor, $ 39,382
2,000 Toyota Motor Corp. 57,994
----------
97,376
----------
BANKING -- 4.0%
3,000 Bank of Tokyo-Mitsubishi 47,514
4,000 Mitsubishi Trust & Banking Corp. 42,865
4,000 Nomura Securities Co., Ltd. 44,756
5,000 Sumitomo Trust & Banking 41,368
----------
176,503
----------
CHEMICALS -- 2.3%
5,000 Shin-Etsu Chemical Co., Ltd. 100,859
----------
CONSUMER PRODUCTS -- 5.3%
5,000 Aiwa Co., Ltd. 86,282
2,000 Sony Corp. 145,615
----------
231,897
----------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 24.4%
13,000 Fujitsu Ltd. 135,214
800 Hirose Electronics Co., Ltd. 43,748
16,000 Hitachi Ltd. t 144,985
5,000 Hitachi Maxell Ltd. 105,193
1,320 Keyence Corp. t 161,217
5,000 Matsushita Electric Industrial Co., Ltd. 79,978
3,000 Murata Manufacturing Co., Ltd. 111,812
14,000 NEC Corp. t 170,987
1,600 SMC Corp. 117,248
----------
1,070,382
----------
ENTERTAINMENT/LEISURE -- 3.9%
5,000 Roland 89,827
4,000 Yamaha Corp. 80,687
----------
170,514
----------
FINANCIAL SERVICES -- 5.3%
200 Shohkoh Fund & Co. 46,962
2,500 Acom Company, Ltd. 102,041
2,000 Promise Co., Ltd. 82,736
----------
231,739
----------
</TABLE>
See notes to financial statements.
18
<PAGE> 56
VISTA JAPAN FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
MACHINERY & ENGINEERING EQUIPMENT -- 11.5%
9,000 Fuji Machine Manufacturing Co. $ 253,881
15,000 Komatsu Ltd. t 109,684
12,000 Mitsubishi Heavy Industries Ltd. 79,237
1,500 Shima Seiki Manufacturing, Ltd. 61,934
-----------
504,736
-----------
PHARMACEUTICALS -- 2.4%
4,000 Sankyo Co. Ltd. 107,162
-----------
PHOTOGRAPHIC EQUIPMENT -- 2.6%
3,000 Fuji Photo Film 114,648
-----------
REAL ESTATE -- 4.2%
12,000 Hankyu Realty 83,681
4,000 Mitsubishi Estate Co., Ltd. 50,429
2,000 Tachihi Enterprise Co. Ltd. 48,538
-----------
182,648
-----------
RETAILING -- 2.0%
1,000 Ito-Yokado Co. Ltd. 47,987
7,000 Mitsukoshi Ltd. 38,886
-----------
86,873
-----------
TELECOMMUNICATIONS -- 2.5%
2,000 Matsushita Communication Industries 51,690
8 Nippon Telegraph & Telephone Corp. 56,418
-----------
108,108
-----------
WAREHOUSING -- 1.1%
10,000 Sumitomo Warehouse 49,247
- -----------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS 3,232,692
(COST $3,314,216)
- -----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
19
<PAGE> 57
VISTA JAPAN FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Value
(USD) Issuer (USD)
- -----------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 3.0%
- -----------------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY SECURITIES -- 3.0%
-----------------------------------
U.S. Treasury Bills,
$20,000 4.960%, 05/15/97 $ 19,961
50,000 4.960%, 05/15/97 49,904
20,000 5.050%, 06/05/97 19,902
40,000 5.155%, 07/24/97 39,519
- -----------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS 129,286
(COST $129,286)
=========================================================================================
TOTAL INVESTMENTS -- 76.7% $ 3,361,978
(COST $3,443,502)
- -----------------------------------------------------------------------------------------
</TABLE>
PURCHASED INDEX FUTURES OUTSTANDING
<TABLE>
<CAPTION>
Number Original Nominal
Expiration of Nominal Value at Unrealized
Description Date Contracts Value 04/30/97 Appreciation
- ---------------------- ------------- --------- -------- -------- ------------
<S> <C> <C> <C> <C> <C>
TSE Topix............. June 13, 1997 7 $782,917 $799,228 $ 16,311
</TABLE>
* = Non income producing security.
t = All or a portion of this security is pledged to cover financial
futures contracts.
ACES = Automatic Common Exchange Securities.
ADR = American Depository Receipt.
ADS = American Depository Shares.
GDR = Global Depository Receipt
See notes to financial statements.
20
<PAGE> 58
VISTA MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista
Vista Vista Vista International
European Southeast Asian Japan Equity
Fund Fund Fund Fund
------------ --------------- --------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Note 1)........................... $10,416,644 $11,820,277 $3,361,978 $31,733,451
Cash..................................................... 944,480 976,049 944,879 --
Foreign Currency (Cost $11,445; $423,168)................ 12,542 423,164 -- --
Receivables:
Open forward currency contracts........................ 29,117 10 64,329 --
Investment securities sold............................. 948,886 -- -- --
Interest and dividends................................. 60,031 37,788 9,450 --
Trust shares sold...................................... 79,393 32,351 19,858 378,484
Expense reimbursement from Distributor................. -- -- 7,484 --
Other assets............................................. 2,906 718 19,128 29,401
----------- ----------- ---------- -----------
Total Assets....................................... 12,493,999 13,290,357 4,427,106 32,141,336
----------- ----------- ---------- -----------
LIABILITIES:
Payable for investment securities purchased.............. 1,229,648 156,710 -- --
Payable for Trust shares redeemed........................ 11,737 2,693 -- 126,907
Payable for open forward currency contracts.............. 8,081 -- 8,546 --
Other liabilities........................................ -- 6,436 -- --
Accrued liabilities: (Note 2)
Administration fees.................................... -- -- -- 1,254
Distribution fees...................................... 2,697 3,464 935 9,404
Shareholder servicing fees............................. 228 388 36 6,271
Custodian.............................................. 5,598 8,471 1,802 --
Other.................................................. 40,896 48,364 31,506 81,110
----------- ----------- ---------- -----------
Total Liabilities.................................. 1,298,885 226,526 42,825 224,946
----------- ----------- ---------- -----------
</TABLE>
See notes to financial statements.
21
<PAGE> 59
VISTA MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista
Vista Vista Vista International
European Southeast Asian Japan Equity
Fund Fund Fund Fund
------------ --------------- --------------- -------------
<S> <C> <C> <C> <C>
NET ASSETS:
Paid in capital.......................................... $ 9,876,487 $12,905,059 $4,876,248 $30,048,367
Accumulated undistributed net investment income.......... (74,700) 18,279 (115,332) (210,061)
Accumulated undistributed net realized gain (loss) on
investment transactions................................ 691,746 72,151 (366,244) (29,911)
Net unrealized appreciation/depreciation of investments
and futures............................................ 701,581 68,342 (10,391) 2,107,995
----------- ----------- ---------- -----------
Net Assets:............................................ $11,195,114 $13,063,831 $4,384,281 $31,916,390
=========== =========== ========== ===========
Class A Shares....................................... $ 9,757,185 $11,089,937 $4,186,152 $23,703,413
=========== =========== ========== ===========
Class B Shares....................................... $ 1,437,929 $ 1,973,894 $ 198,129 $ 8,212,977
=========== =========== ========== ===========
Shares of beneficial interest outstanding ($.001 par value;
unlimited number of shares authorized):
Class A Shares....................................... 782,638 977,303 450,363 1,914,997
=========== =========== ========== ===========
Class B Shares....................................... 116,339 175,875 21,450 671,291
=========== =========== ========== ===========
Class A Shares:
Net asset value and redemption price per share*.......... $ 12.47 $ 11.35 $ 9.30 $ 12.38
=========== =========== ========== ===========
Maximum offering price per share (net asset value per
share 95.25%).......................................... $ 13.09 $ 11.92 $ 9.76 $ 13.00
=========== =========== ========== ===========
Class B Shares:
Net asset value and offering price per share*............ $ 12.36 $ 11.22 $ 9.24 $ 12.23
=========== =========== ========== ===========
Cost of Investments........................................ $ 9,735,537 $11,752,301 $3,443,502
=========== =========== ==========
</TABLE>
- ---------------
* Net assets/shares outstanding.
See notes to financial statements.
22
<PAGE> 60
VISTA MUTUAL FUNDS
STATEMENT OF OPERATIONS For the six months ended April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista
Vista Vista Vista International
European Southeast Asian Japan Equity
Fund Fund Fund Fund
-------- --------------- -------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend............................................................ $ 83,593 $ 101,036 $ 6,631 $ --
Interest............................................................ 7,256 28,806 8,626 --
Investment income from Portfolio.................................... -- -- -- 303,062
Foreign taxes withheld.............................................. (11,629) (6,068) (995) (33,390)
Expenses from Portfolio............................................. -- -- -- (129,726)
-------- --------- -------- -----------
Total investment income....................................... 79,220 123,774 14,262 139,946
-------- --------- -------- -----------
EXPENSES: (Note 2)
Shareholder servicing fees.......................................... 718 1,955 202 40,382
Administration fees................................................. 6,442 8,523 3,224 16,153
Distribution fees................................................... 12,166 18,115 5,777 60,376
Investment Advisory fees............................................ 42,913 56,822 21,492 --
Custodian fees...................................................... 6,016 17,898 3,563 --
Amortization of organization costs (Note 1)......................... 2,315
Printing and postage................................................ 3,209 4,505 2,477 496
Professional fees................................................... 7,860 8,000 7,647 9,917
Registration costs.................................................. 14,980 16,493 8,811 2,480
Transfer agent fees................................................. 25,178 34,093 24,351 69,767
Trustees fees and expenses.......................................... 215 284 107 485
Other............................................................... 6,918 3,971 5,335 18,482
-------- --------- -------- -----------
Total expenses................................................ 126,615 170,659 82,986 220,853
-------- --------- -------- -----------
Less amounts waived (Note 2E)....................................... 49,355 65,345 24,716 8,069
Less expenses borne by the Distributor.............................. -- -- 20,053 --
-------- --------- -------- -----------
Net expenses...................................................... 77,260 105,314 38,217 212,784
-------- --------- -------- -----------
Net investment income............................................. 1,960 18,460 (23,955) (72,838)
-------- --------- -------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments....................................................... 629,570 96,432 (546,133 (399,131)
Futures and written option transactions........................... 9,104 32,942 --
Foreign currency transactions..................................... 79,117 (18,887) 290,032 372,220
Change in net unrealized appreciation/depreciation on:
Investments....................................................... 253,060 (303,158) 313,730 1,476,756
Futures and written option transactions........................... (4,273) 16,311 102,990
Foreign currency transactions..................................... 9,762 246 (55,748) (8,932)
-------- --------- -------- -----------
Net realized and unrealized gain (loss)............................. 971,509 (220,536) 51,134 1,543,903
-------- --------- -------- -----------
Net increase in net assets from operations.......................... $973,469 ($202,076) $ 27,179 $ 1,471,065
======== ========= ======== ===========
</TABLE>
See notes to financial statements.
23
<PAGE> 61
STATEMENTS OF CHANGES IN NET ASSETS For the periods indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Vista Vista
European Southeast Asian Japan
Fund* Fund* Fund*
-------------------------- -------------------------- -------------------------
11/01/96 Year 11/01/96 Year 11/01/96 Year
Through Ended Through Ended Through Ended
04/30/97 10/31/96 04/30/97 10/31/96 04/30/97 10/31/96
----------- ---------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income................. $ 1,960 $ 77,290 $ 18,460 $ (14,599) $ (23,955) $ (42,663)
Net realized gain (loss) on
investments, futures and foreign
currency transactions............... 708,596 502,136 86,649 544,179 (223,159) (99,527)
Change in net unrealized
appreciation/depreciation on
investments and foreign exchange.... 262,913 438,666 (307,185) 375,527 274,293 (284,684)
----------- ---------- ----------- ---------- ---------- ----------
Increase (decrease) in net assets from
operations.......................... 973,469 1,018,092 (202,076) 905,107 27,179 (426,874)
----------- ---------- ----------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
(Note C.3.):
Net investment income................. (128,967) (44,714) -- -- (92,272) --
Net realized gain on investment
transactions........................ (499,253) -- (544,259) -- -- --
----------- ---------- ----------- ---------- ---------- ----------
Total distributions............. (628,220) (44,714) (544,259) -- (92,272) --
----------- ---------- ----------- ---------- ---------- ----------
Net increase (decrease) in net assets
from shares of beneficial interest
transactions........................ 4,301,715 5,574,772 4,137,502 8,767,557 (492,927) 5,369,175
----------- ---------- ----------- ---------- ---------- ----------
Total increase (decrease)....... 4,646,964 6,548,150 3,391,167 9,672,664 (558,020) 4,942,301
NET ASSETS:
Beginning of period................... 6,548,150 -- 9,672,664 -- 4,942,301 --
----------- ---------- ----------- ---------- ---------- ----------
End of period......................... $11,195,114 $6,548,150 $13,063,831 $9,672,664 $4,384,281 $4,942,301
=========== ========== =========== ========== ========== ==========
<CAPTION>
Vista
International
Equity
Fund
---------------------------
11/01/96 Year
Through Ended
04/30/97 10/31/96
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income................. $ (72,838) $ (24,797)
Net realized gain (loss) on
investments, futures and foreign
currency transactions............... (26,911) 3,616,790
Change in net unrealized
appreciation/depreciation on
investments and foreign exchange.... 1,570,814 (2,436,093)
----------- -----------
Increase (decrease) in net assets from
operations.......................... 1,471,065 1,155,900
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
(Note C.3.):
Net investment income................. (70,477) (143,398)
Net realized gain on investment
transactions........................ (1,359,920) (27)
----------- -----------
Total distributions............. (1,430,397) (143,425)
----------- -----------
Net increase (decrease) in net assets
from shares of beneficial interest
transactions........................ (847,596) (1,335,627)
----------- -----------
Total increase (decrease)....... (806,928) (323,152)
NET ASSETS:
Beginning of period................... 32,723,318 33,046,470
----------- -----------
End of period......................... $31,916,390 $32,723,318
=========== ===========
</TABLE>
- ---------------
* Fund commenced operations on November 1, 1995
See notes to financial statements.
24
<PAGE> 62
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (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") and Vista
International Equity Fund ("VIEF") collectively, the "Funds", are four 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:
A. VIEF
Since inception, the VIEF has utilized the Master Feeder Fund Structure.
VIEF seeks to achieve its investment objective by investing all of its
investable assets of the Fund in the International Equity Portfolio, (the
"Portfolio"). The Portfolio, like the Fund, is an open-end management
investment company having the same investment objectives as the Fund. As of
April 30, 1997 VIEF owned 99.99% of the Portfolio. The financial statement
of the Portfolio, including the portfolio of investments, are included
elsewhere in this report and should be read in conjunction with the
financial statements of the Fund.
1. Valuation of Investments -- VIEF records its investment in the
Portfolio at value. Securities of the Portfolio 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
Portfolio 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 -- VIEF records daily its pro-rata share of the
Portfolio's income, expenses, and realized and unrealized gains and
losses. In addition, the Fund accrues its own expenses daily as incurred.
Realized gain/losses and changes in unrealized appreciation/depreciation
represent the Fund's share of such elements allocated from the Portfolio.
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 repur-
25
<PAGE> 63
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
chase 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.
The Funds invest in stock index futures contracts for the purpose of
hedging the Fund against share price volatility, which purpose may or may
not be achieved. When the Fund is not fully invested in the securities
market, it may enter into "long" positions in futures or options
contracts in order to gain rapid market exposure that may in part or
entirely offset increases in the cost of securities intended for
purchase. Use of futures contracts subject the Fund to risk of loss in
excess of amounts shown on the Statement of Assets and Liabilities, up to
the amount of the value of the futures contracts as shown in the
Portfolio of Investments at April 30, 1997.
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 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, 1997 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 held 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, such realized foreign currency gains (losses) are included
in the reported net realized gains (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
26
<PAGE> 64
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
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 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 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. The adjustments for
the Funds relate primarily to the character for tax purposes of certain
short-term gains or losses. Dividends and distributions which exceed net
investment income or net realized capital gains for financial reporting
purposes but not for tax purposes are reported as distributions in excess
of net investment income or net realized capital gains.
4. Expenses -- Expenses of the Trust 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 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.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A. Investment Advisory Fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank, ("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
27
<PAGE> 65
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
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.
Chase Asset Management, Inc. ("CAM"), a registered investment adviser, is
the sub-investment adviser to each Fund pursuant to a Sub-Investment
Advisory Agreement between CAM and Chase. CAM is a wholly owned subsidiary
of Chase and is entitled to receive a fee, payable by Chase from its
advisory fee, at an annual rate equal to 0.50% of each Fund's average daily
net assets.
B. Shareholder Servicing Fees -- The Trust has adopted an Administrative
Services Plan for the Class B Shares of all of the Funds, 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
assets of the Class B Shares of each Fund and for the Class A Shares of
VIEF. 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.
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 shares of 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 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, 1997, the,
Administrator, Investment Adviser, Shareholder Servicing Agent and
Sub-Administrator voluntarily waived fees for each of the Funds as follows:
<TABLE>
<CAPTION>
Fee Waivers VEF VSEAF VJF VIEF
---------------------------------------- -------- -------- -------- -------
<S> <C> <C> <C> <C>
Administration.......................... $ 6,442 $ 8,524 $ 3,224 $ 8,069
Investment Advisory..................... 42,913 56,821 21,492 --
-------- -------- -------- -------
Total............................... $ 49,355 $ 65,345 $ 24,716 $ 8,069
======== ======== ======== ======
Distributor Reimbursement............... -- -- $ 20,053 --
======== ======== ======== ======
</TABLE>
F. Other -- Certain officers of the Trust are officers of Vista Fund
Distributors, Inc. or of its parent corporation, BISYS.
Chase provides portfolio accounting and custody services for VEF, VSEAF and
VJF. Compensation for such services are presented in the Statement of
Operations as custodian fees.
28
<PAGE> 66
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS -- For the six month period ended April 30,1997,
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)...... $8,838,001 $13,446,682 $3,419,365
Sales (excluding U.S. Government).......... 5,621,452 9,743,735 4,424,344
<CAPTION>
VIEF
------------
<S> <C>
Increase in Portfolio Investment........... $ 9,518,449
Decrease in Portfolio Investment........... 11,790,363
</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, 1997 are as follows:
<TABLE>
<CAPTION>
VEF VSEAF VJF
----------- ------------ -----------
<S> <C> <C> <C>
Aggregate cost............................. $9,735,537 $11,752,301 $3,443,502
---------- ----------- ----------
Gross unrealized appreciation.............. $ 969,199 $ 865,800 $ 112,813
Gross unrealized depreciation.............. (289,461) (797,458) (194,761)
---------- ----------- ----------
Net unrealized appreciation................ $ 679,738 $ 68,342 $ (81,948)
========== =========== ==========
</TABLE>
5. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST -- Transaction in Shares of
Beneficial Interest were as follows:
<TABLE>
<CAPTION>
Vista European Fund
----------------------------------------------------
11/01/96 11/02/95*
Through Through
04/30/97 10/31/96
----------------------- -------------------------
Amount Shares Amount Shares
----------- -------- ----------- ----------
<S> <C> <C> <C> <C>
Class A
Shares sold..................... $3,548,117 289,765 $6,376,204 622,226
Shares issued in reinvestment of
distributions................. 317,578 26,733 8,362 716
Shares redeemed................. (783,725) (64,050) (991,677) (92,752)
----------- ------- ---------- -------
Net increase (decrease) in Trust
shares outstanding............ $3,081,970 252,448 $5,392,889 530,190
=========== ======== ========== =======
</TABLE>
<TABLE>
<CAPTION>
Vista European Fund
----------------------------------------------------
11/01/96 11/03/95**
Through Through
04/30/97 10/31/96
----------------------- -------------------------
Amount Shares Amount Shares
----------- -------- ----------- ----------
<S> <C> <C> <C> <C>
Class B
Shares sold..................... $1,219,146 100,254 $186,865 16,436
Shares issued in reinvestment of
distributions................. 25,246 2,139 449 38
Shares redeemed................. (24,647) (2,016) (5,431) (512)
---------- ------- -------- ------
Net increase (decrease) in Trust
shares outstanding............ $1,219,745 100,377 $181,883 15,962
========== ======= ======== ======
</TABLE>
29
<PAGE> 67
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Southeast Asian Fund
----------------------------------------------------
11/01/96 11/02/95*
Through Through
04/30/97 10/31/96
----------------------- -------------------------
Amount Shares Amount Shares
----------- -------- ----------- ----------
<S> <C> <C> <C> <C>
Class A
Shares sold..................... $ 3,939,789 326,982 $ 9,712,207 895,578
Shares issued in reinvestment of
distributions................. 330,883 27,596 -- --
Shares redeemed................. (1,000,447) (83,100) (2,159,565) (189,753)
----------- -------- ----------- --------
Net increase (decrease) in Trust
shares outstanding............ $ 3,270,225 271,478 $ 7,552,642 705,825
=========== ======== =========== ========
</TABLE>
<TABLE>
<CAPTION>
Vista Southeast Asian Fund
----------------------------------------------------
11/01/96 11/03/95**
Through Through
04/30/97 10/31/96
----------------------- -------------------------
Amount Shares Amount Shares
----------- -------- ----------- ----------
<S> <C> <C> <C> <C>
Class B
Shares sold..................... $1,094,863 92,755 $1,414,580 119,531
Shares issued in reinvestment of
distributions................. 64,154 5,395 -- --
Shares redeemed................. (291,740) (24,991) (199,665) (16,815)
---------- ------- ---------- -------
Net increase (decrease) in Trust
shares outstanding............ $ 867,277 73,159 $1,214,915 102,716
========== ======== ========== =======
</TABLE>
<TABLE>
<CAPTION>
Vista Japan Fund
------------------------------------------------------
11/01/96 11/02/95*
Through Through
04/30/97 10/31/96
------------------------- -------------------------
Amount Shares Amount Shares
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Class A
Shares sold................... $ 429,824 48,224 $5,956,715 581,717
Shares issued in reinvestment
of distributions............ 19,063 2,132 -- --
Shares redeemed............... (978,981) (107,617) (768,571) (74,093)
--------- -------- ---------- -------
Net increase (decrease) in
Trust shares outstanding.... $(530,094) (57,261) $5,188,144 507,624
========= ======== ========== =======
</TABLE>
30
<PAGE> 68
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Japan Fund
----------------------------------------------------
11/01/96 11/03/95**
Through Through
04/30/97 10/31/96
----------------------- -------------------------
Amount Shares Amount Shares
----------- -------- ----------- ----------
<S> <C> <C> <C> <C>
Class B
Shares sold..................... $ 60,434 6,729 $221,292 21,331
Shares issued in reinvestment of
distributions................. 2,274 256 -- --
Shares redeemed................. (25,541) (2,820) (40,261) (4,046)
-------- ------ -------- ------
Net increase (decrease) in Trust
shares outstanding............ $ 37,167 4,165 $181,031 17,285
======== ======= ======== ======
</TABLE>
<TABLE>
<CAPTION>
Vista International Equity Fund
----------------------------------------------------
11/01/96
Through Year Ended
04/30/97 October 31, 1996
----------------------- -------------------------
Amount Shares Amount Shares
----------- -------- ----------- ----------
<S> <C> <C> <C> <C>
Class A
Shares sold..................... $ 8,396,758 678,130 $17,914,479 1,456,995
Shares issued in reinvestment of
distributions................. 58,006 4,751 116,872 9,707
Shares redeemed................. (9,688,977) (779,733) (20,230,065) (1,640,951)
----------- -------- ----------- ----------
Net increase (decrease) in Trust
shares outstanding............ $(1,234,213) (96,852) $(2,198,714) (174,249)
=========== ========= =========== ==========
</TABLE>
<TABLE>
<CAPTION>
Vista International Equity Fund
----------------------------------------------------
11/01/96
Through Year Ended
04/30/97 October 31, 1996
----------------------- -------------------------
Amount Shares Amount Shares
----------- -------- ----------- ----------
<S> <C> <C> <C> <C>
Class B
Shares sold..................... $ 2,261,278 185,162 $ 3,728,205 305,390
Shares issued in reinvestment of
distributions................. -- -- 5,775 483
Shares redeemed................. (1,874,661) (152,969) (2,870,893) (235,173)
----------- -------- ----------- --------
Net increase (decrease) in Trust
shares outstanding............ $ 386,617 32,193 $ 863,087 70,700
=========== ======== =========== ========
</TABLE>
- ---------------
* Fund commenced operations.
** Commenced offering class of shares.
31
<PAGE> 69
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
6. OPEN FORWARD FOREIGN CURRENCY CONTRACTS -- The following forward foreign
currency contracts were open at April 30,1997:
VISTA EUROPEAN FUND
<TABLE>
<CAPTION>
Net
Delivery Market Unrealized
Value (Local Cost Settlement Value Gain (Loss)
Currency) (USD) Date (USD) (USD)
------------ ------------ ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Purchases
- ---------
Italian Lira.................... 298,545,600 $174,896 06/03/97 $174,168 $ (728)
German Deutsche Mark............ 592,000 350,016 06/03/97 342,663 (7,353)
Sales
- ------
Italian Lira.................... 597,091,200 $350,016 06/03/97 $348,336 $ 1,680
German Deutsche Mark............ 1,000,000 584,491 05/30/97 578,653 5,838
German Deutsche Mark............ 930,000 557,838 05/30/97 538,148 19,690
German Deutsche Mark............ 229,970 174,896 06/03/97 173,630 1,266
Swiss Franc..................... 150,979 102,938 05/02/97 102,467 471
Dutch Guilder................... 162,251 83,458 05/02/97 83,286 172
VISTA SOUTHEAST ASIAN FUND
Purchases
- ---------
Malaysian Ringgit............... 53,270 $ 21,188 05/05/97 $ 21,198 $ 10
VISTA JAPAN FUND
Purchases
- ---------
Japanese Yen.................... 30,543,920 $244,000 05/06/97 $240,879 $(3,121)
Japanese Yen.................... 52,813,956 423,800 06/06/97 418,375 (5,425)
Sales
- -----
Japanese Yen.................... 29,153,120 $244,000 05/06/97 $229,911 $14,089
Japanese Yen.................... 50,974,664 423,800 06/06/97 403,805 19,995
Japanese Yen.................... 50,813,620 423,800 06/06/97 402,529 21,271
Japanese Yen.................... 51,800,278 421,372 07/09/97 412,398 8,974
</TABLE>
7. FOREIGN CASH POSITIONS
VISTA EUROPEAN FUND
<TABLE>
<CAPTION>
Net
Delivery Unrealized
Value (Local Market Value Gain (Loss)
Currency) Cost (USD) (USD) (USD)
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Swiss Franc............................. 419 $ 286 $ 284 $ (2)
German Deutsche Mark.................... 2 (1,188) 1 1,189
Spanish Peseta.......................... 576,430 3,985 3,962 (23)
French Franc............................ 7,941 1,413 1,413 0
UK Sterling............................. 931 1,498 1,511 13
Dutch Guilder........................... 10,464 5,451 5,371 (80)
-------- -------- -------
$ 11,445 $ 12,542 $1,097
======== ======== =======
VISTA SOUTHEAST ASIAN FUND
Australian Dollar....................... 10,046 $ 7,749 $ 7,852 $ 103
Hong Kong Dollar........................ 1,718,631 221,830 221,858 28
Malaysian Ringgit....................... 267,929 106,830 106,745 (85)
Philippines Peso........................ 2,286,259 86,749 86,699 (50)
Singapore Dollar........................ 13 9 9 0
Thai Baht............................... 15 1 1 0
-------- -------- ------
$423,168 $423,164 $ (4)
======== ======== =======
</TABLE>
32
<PAGE> 70
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
8. CONCENTRATIONS -- At April 30, 1997, substantially all of the Fund's net
assets consist of securities of issuers which are denominated in foreign
currencies. Changes in currency exchange rates will affect the value of and
investment income from such securities. Substantially all of VSEAF's net assets
consists of securities which are subject to greater price volatility, limited
capitalization and liquidity, and higher rates of inflation than securities of
companies based in the United States. In addition, certain Asian securities may
be subject to substantial governmental involvement in the economy and greater
social economic and political uncertainty.
9. RETIREMENT PLAN -- The Funds have adopted an unfunded noncontributory
defined benefit pension plan covering all independent trustees of the Funds who
will have served as independent trustees for at least five years at the time of
retirement. Benefits under this plan are based on compensation and years of
service. Pension expenses for the six months ended April 30, 1997, included in
Trustees Fees and Expenses in the Statement of Operations, and accrued pension
liability included in other accrued liabilities, respectively, in the Statement
of Assets and Liabilities were as follows:
<TABLE>
<CAPTION>
Accrued
Pension Pension
Fund: Expenses Liability
-------- ---------
<S> <C> <C>
VEF............................................................. $ 74 $ 499
VSEAF........................................................... 112 718
VJF............................................................. 56 311
VIEF............................................................ 180 1,144
</TABLE>
33
<PAGE> 71
VISTA MUTUAL FUNDS
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OF BENEFICIAL INTEREST
OUTSTANDING
Throughout each period indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista
Southeast
Vista European Fund Asian Fund
----------------------------------------------- ----------
Class A Class B
--------------------- ----------------------
11/01/96 11/02/95* 11/01/96 11/03/95**
Through Through Through Through
04/30/97 10/31/96 04/30/97 10/31/96
-------- --------- -------- ----------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period................................. $ 11.99 $ 10.00 $ 11.93 $ 9.97
-------- ------- -------- -------
Income From Investment Operations:
Net Investment Income............................................. 0.167 0.146 0.166 0.066
Net Gains or (Losses) in Securities (both realized and
unrealized)...................................................... 1.380 1.929 1.323 1.961
-------- ------- -------- -------
Total from Investment Operations.................................. 1.547 2.075 1.489 2.027
-------- ------- -------- -------
Less Distributions:
Dividends from Net Investment Income.............................. 0.220 0.085 0.210 0.067
Distributions from Capital Gains.................................. 0.850 -- 0.850 --
-------- ------- -------- -------
Total Distributions............................................... 1.070 0.085 1.060 0.067
-------- ------- -------- -------
Net Asset Value, End of Period....................................... $ 12.47 $ 11.99 $ 12.36 $ 11.93
======== ======= ======== =======
Total Return (1)..................................................... 13.37% 20.78% 12.91% 20.35%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted)............................. $ 9,757 $ 6,358 $ 1,438 $ 190
Ratio of Expenses to Average Net Assets #........................... 1.75% 1.75% 2.53% 2.47%
Ratio of Net Investment Income to Average Net Assets #.............. 0.05% 1.44% (0.05%) 0.80%
Ratio of Expenses Without Waivers and Assumption of Expenses to
Average Net Assets #.............................................. 2.90% 3.49% 3.68% 3.83%
Ratio of Net Investment Income Without Waivers and Assumptions of
Expenses #........................................................ (1.10%) (0.30%) (1.10%) (0.56%)
Portfolio Turnover Rate.............................................. 69% 186% 69% 186%
Average commission rate paid per share............................... $0.03749 $0.0242 $0.03749 $0.0242
<CAPTION>
Vista Southeast Asion Fund
----------------------------------------------
Class A Class B
-------------------- ----------------------
11/01/96 11/02/95* 11/01/96 11/03/95**
Through Through Through Through
04/30/97 10/31/96 04/30/97 10/31/96
-------- --------- -------- ----------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period.................................. $ 11.97 $ 10.00 $ 11.89 $ 10.01
-------- ------- -------- -------
Income From Investment Operations:
Net Investment Income.............................................. 0.025 (0.013) 0.009 (0.055)
Net Gains or (Losses) in Securities (both realized and
unrealized)....................................................... 0.005 1.983 (0.029) 1.935
------- ------- -------- -------
Total from Investment Operations................................... 0.030 1.970 (0.020) 1.880
------- ------- -------- -------
Less Distributions:
Dividends from Net Investment Income............................... -- -- -- --
Distributions from Capital Gains................................... 0.650 -- 0.650 --
------- ------- -------- -------
Total Distributions................................................ 0.650 -- 0.650 --
-------- ------- -------- -------
Net Asset Value, End of Period........................................ $ 11.35 $ 11.97 $ 11.22 $ 11.89
======== ======= ======== =======
Total Return (1)...................................................... (0.04%) 19.70% (0.48%) 18.78%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted).............................. $ 11,090 $ 8,451 $ 1,974 $ 1,222
Ratio of Expenses to Average Net Assets #............................ 1.75% 1.74% 2.50% 2.52%
Ratio of Net Investment Income to Average Net Assets #............... 0.43% (0.12%) (0.32%) (0.90%)
Ratio of Expenses Without Waivers and Assumption of Expenses to
Average Net Assets #............................................... 2.90% 3.26% 3.65% 3.70%
Ratio of Net Investment Income Without Waivers and Assumptions of
Expenses #......................................................... (0.72%) (1.64%) (1.47%) (2.08%)
Portfolio Turnover Rate............................................... 101% 149% 101% 149%
Average commission rate paid per share................................ $0.01089 $0.0129 $0.01089 $0.0129
</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.
See notes to financial statements.
34
<PAGE> 72
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 Japan Fund
-----------------------------------------------
Class A Class B
--------------------- ----------------------
11/01/96 11/02/95* 11/01/96 11/03/95**
Through Through Through Through
04/30/97 10/31/96 04/30/97 10/31/96
-------- --------- -------- ----------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period..................................... $ 9.42 $ 10.00 $ 9.35 $ 10.00
-------- ------- -------- -------
Income From Investment Operations:
Net Investment Income................................................. 0.212 (0.083) 0.118 (0.022)
Net Gains or (Losses) in Securities (both realized and unrealized).... (0.142) (0.497) (0.078) (0.628)
-------- ------- -------- -------
Total from Investment Operations...................................... 0.070 (0.580) 0.040 (0.650)
-------- ------- -------- -------
Less Distributions:
Dividends from Net Investment Income.................................. 0.190 -- 0.150 --
Distributions from Capital Gains...................................... -- -- -- --
-------- ------- -------- -------
Total Distributions................................................... 0.190 -- 0.150 --
-------- ------- -------- -------
Net Asset Value, End of Period........................................... $ 9.30 $ 9.42 $ 9.24 $ 9.35
======== ======= ======== =======
Total Return (1)......................................................... 0.82% (5.80%) 0.49% (6.50%)
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted)................................. $ 4,186 $ 4,781 $ 198 $ 162
Ratio of Expenses to Average Net Assets #............................... 1.75% 1.75% 2.50% 2.52%
Ratio of Net Investment Income to Average Net Assets #.................. (1.12%) (0.91%) (0.86%) (0.40%)
Ratio of Expenses Without Waivers and Assumption of Expenses to
Average Net Assets #.................................................. 3.83% 3.60% 4.56% 4.00%
Ratio of Net Investment Income Without Waivers and Assumptions of
Expenses #............................................................ (3.20%) (2.76%) (2.92%) (1.88%)
Portfolio Turnover Rate.................................................. 94% 121% 94% 121%
Average commission rate paid per share................................... $0.04856 $0.0499 $0.04856 $ 0.0499
<CAPTION>
Vista International Equity Fund
--------------------------------------------
Class A
--------------------------------------------
11/01/96 Year Ended
Through --------------------------------
04/30/97 10/31/96 10/31/95 10/31/94
-------- -------- -------- --------
<S> <C<C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period..................................... $ 12.38 $ 12.02 $ 12.31 $ 11.82
------- ------- ------- -------
Income From Investment Operations:
Net Investment Income................................................. 0.016 0.056 0.039 (0.022)
Net Gains or (Losses) in Securities (both realized and unrealized).... 0.540 0.367 (0.190) 0.566
------- ------- ------- -------
Total from Investment Operations...................................... 0.556 0.423 (0.151) 0.544
------- ------- ------- -------
Less Distributions:
Dividends from Net Investment Income.................................. 0.036 0.063 -- --
Distributions from Capital Gains...................................... 0.520 -- 0.137 0.054
------- ------- ------- -------
Total Distributions................................................... 0.556 0.063 0.137 0.054
------- ------- ------- -------
Net Asset Value, End of Period........................................... $ 12.38 $ 12.38 $ 12.02 $ 12.31
======= ======= ======= =======
Total Return (1)......................................................... 4.55% 3.53% (1.19%) 4.61%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted)................................. $23,703 $24,904 $26,287 $37,926
Ratio of Expenses to Average Net Assets #............................... 2.00% 2.00% 2.01% 2.00%
Ratio of Net Investment Income to Average Net Assets #.................. (0.34%) 0.03% (0.10%) (0.27%)
Ratio of Expenses Without Waivers and Assumption of Expenses to
Average Net Assets #.................................................. 3.10% 2.86% 2.86% 2.86%
Ratio of Net Investment Income Without Waivers and Assumptions of
Expenses #............................................................ (1.44%) (0.89%) (0.96%) (1.13%)
Portfolio Turnover Rate..................................................
Average commission rate paid per share...................................
</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.
See notes to financial statements.
35
<PAGE> 73
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
--------- ------------------------------------------------------
12/31/92* 11/01/96 Year Ended 11/04/93**
Through Through --------------------- Through
10/31/93 04/30/97 10/31/96 10/31/95 10/31/94
--------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period............................ $ 10.00 $ 12.24 $ 11.89 $ 12.23 $ 11.69
------- ------- ------- ------- -------
Income From Investment Operations:
Net Investment Income........................................ (0.010) (0.049) 0.013 (0.026) (0.053)
Net Gains or (Losses) in Securities
(both realized and unrealized)............................. 1.830 0.560 0.350 (0.180) 0.647
------- ------- ------- ------- -------
Total from Investment Operations............................. 1.820 0.511 0.363 (0.206) 0.594
------- ------- ------- ------- -------
Less Distributions:
Dividends from Net Investment Income......................... -- -- -- -- --
Distributions from Capital Gains............................. -- 0.520 0.010 0.137 0.054
------- ------- ------- ------- -------
Total Distributions.......................................... -- 0.520 0.010 0.137 0.054
------- ------- ------- ------- -------
Net Asset Value, End of Period.................................. $ 11.82 $ 12.23 $ 12.24 $ 11.89 $ 12.23
======= ======= ======= ======= =======
Total Return (1)................................................ 22.23% 4.21% 3.03% (1.61%) 5.09%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted)........................ $14,290 $ 8,213 $ 7,819 $ 6,759 $ 7,182
Ratio of Expenses to Average Net Assets #...................... 2.13% 2.50% 2.50% 2.50% 2.50%
Ratio of Net Investment Income to Average Net Assets #......... (0.14%) (0.80%) (0.43%) (0.53%) (0.94%)
Ratio of Expenses Without Waivers and Assumption
of Expenses to Average Net Assets # (2)...................... 2.86% 3.60% 3.36% 3.36% 3.36%
Ratio of Net Investment Income Without Waivers
and Assumptions of Expenses #................................ (0.87%) (1.90%) (1.29%) (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.
See notes to financial statements.
36
<PAGE> 74
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- 90.3%
- ----------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- 90.1%
----------------------
AUSTRALIA -- 1.9%
Banking --
3,800 Commonwealth Bank of Australia $ 41,286
Broadcasting --
26,000 News Corp. Ltd. 119,847
Diversified --
86,000 Futuris Corp. Ltd. 129,456
Entertainment/Leisure --
21,000 TABCORP Holdings Ltd. 103,761
Food/Beverage Products --
24,000 Foster's Brewing Group Ltd. 49,418
Multi-Media --
16,500 Publishing & Broadcasting Ltd. 87,124
Oil & Gas --
68,000 Energy Equity Corp. Ltd. * 66,826
------------
TOTAL AUSTRALIA 597,718
------------
AUSTRIA -- 2.2%
Steel --
5,500 Boehler -- Uddeholm AG * 396,709
Oil & Gas --
2,714 OMV AG 296,198
------------
TOTAL AUSTRIA 692,907
------------
BRAZIL -- 1.4%
Telecommunications --
1,900 Telecomunicacoes Brasileiras SA,-Telebras ADR 218,025
Utilities --
10,500 Centrais Electricas Brasileiras SA-Electrobras, ADR 240,293
------------
TOTAL BRAZIL 458,318
------------
CHILE -- 0.9%
Food/Beverage Products --
12,500 Compania Cervecerias Unidas SA, ADR 278,125
------------
</TABLE>
See notes to financial statements.
37
<PAGE> 75
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
CHINA -- 0.5%
Automotive --
158,000 Qingling Motors Company Ltd.-H Shares * $ 86,683
Shipping/Transportation --
180,000 Guangshen Railway Co., Ltd.-H Shares * 85,973
------------
TOTAL CHINA 172,656
------------
FRANCE -- 9.3%
Appliances & Household Durables --
6,300 Moulinex * 145,713
Automotive --
2,348 Equipments et Composants pour l'Industrie Automobile 369,561
Banking --
6,500 Banque Nationale de Paris 277,497
Chemicals --
8,800 Rhone-Poulenc, Class A, 296,175
Computer Services --
5,800 Cap Gemini Sogeti SA * 351,530
1,032 Group Axime * 124,212
Financial Services --
3,262 Cetelem Group * 380,310
Food/Beverage Products --
13,800 Remy Cointreau 355,144
Tire & Rubber --
5,300 Michelin (CGDE), B Shares 296,327
Utilities --
2,452 Compagnie Generale des Eaux 341,788
------------
TOTAL FRANCE 2,938,257
------------
GERMANY -- 6.7%
Automotive --
6,000 Daimler-Benz AG 445,883
Chemicals --
10,900 BASF AG 420,757
Consumer Products --
4,337 Adidas AG * 452,371
14,055 Puma AG * 475,133
Health Care/Health Care Services --
3,900 Fresenius Medical Care AG * 341,884
------------
TOTAL GERMANY 2,136,028
------------
</TABLE>
See notes to financial statements.
38
<PAGE> 76
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
GERMANY (CONTINUED)
HONG KONG -- 6.0%
Banking --
16,000 Dao Heng Bank Group, Ltd. $ 76,008
Diversified --
18,000 Citic Pacific Ltd. * 97,359
70,000 First Pacific Company Ltd. 83,585
104,000 Guangdong Investments, Ltd. 97,333
22,000 Hutchison Whampoa 163,297
10,000 Jardine Matheson Holdings (USD) 55,000
17,000 Swire Pacific, Ltd, Class A * 131,122
Financial Services --
21,000 Guoco Group Ltd. 99,760
11,911 HSBC Holdings PLC 301,365
Real Estate --
9,000 Cheung Kong (Holdings) Ltd. 79,002
44,000 China Resources Enterprises Ltd. 121,550
212 Henderson China Holding Ltd. * 365
10,000 Henderson Land Development Company, Ltd. 84,231
82,400 HKR International, Ltd. 101,583
28,000 Hong Kong Land Holdings Ltd. 58,240
30,000 Hysan Development Co. Ltd. 82,875
32,000 New World Development Company Ltd. * 184,649
42,000 Wheelock & Co. Ltd. 87,290
------------
TOTAL HONG KONG 1,904,614
------------
INDONESIA -- 0.3%
Consumer Products --
5,000 PT Gudang Garam (Foreign) 20,988
3,500 PT Hanjaya Mandala Sampoerna (Foreign) 14,079
Metals/Mining --
11,500 PT Tambang Timah (Foreign) 18,930
Telecommunications --
27,000 PT Telekomunikasi Indonesia (Foreign) 39,167
------------
TOTAL INDONESIA 93,164
------------
</TABLE>
See notes to financial statements.
39
<PAGE> 77
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
IRELAND -- 0.8%
Insurance --
53,800 Irish Life PLC $ 266,781
------------
ITALY -- 4.0%
Machinery & Engineering Equipment --
33,800 Danieli & Co. 238,452
Retailing --
7,900 Gucci Group NV (NY Registered Shares) * 546,024
Telecommunications --
149,700 Telecom Italia Mobile SpA 469,855
------------
TOTAL ITALY 1,254,331
------------
JAPAN -- 16.0%
Automotive --
20,000 Mazda Motor 56,220
5,000 Toyota Motor Corp. 144,882
Banking --
5,300 Acom Co. Ltd. * 216,173
4,000 Bank of Tokyo-Mitsubishi 63,307
6,000 Mitsubishi Trust & Banking Corp. 64,252
7,000 Sumitomo Trust & Banking 57,874
Chemicals --
7,000 Shin-Etsu Chemical Co., Ltd. 141,102
Consumer Products --
1,600 Sony Corp. 116,409
Electronics/Electrical Equipment --
6,000 Aiwa Company Ltd. 103,465
18,000 Fujitsu Ltd. 187,087
2,000 Hirose Electronics Co., Ltd. 109,291
26,000 Hitachi Ltd. 235,433
5,000 Hitachi Maxell Ltd. 105,118
2,640 Keyence Corp. 322,205
8,000 Matsushita Communication Industries 206,614
4,000 Murata Manufacturing Co., Ltd. 148,976
14,000 NEC Corp. 170,866
2,100 SMC Corp. 153,780
Entertainment/Leisure --
6,000 Yamaha Corp. 120,945
Financial Services --
</TABLE>
See notes to financial statements.
40
<PAGE> 78
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
JAPAN (CONTINUED)
2,600 Promise Co., Ltd. $ 107,480
Machinery & Engineering Equipment --
11,000 Fuji Machine Manufacturing Co. 310,079
23,000 Komatsu Ltd. 168,063
25,000 Mitsubishi Heavy Industries Ltd. 164,961
2,500 Shima Seiki Manufacturing, Ltd. 102,362
Pharmaceuticals --
9,000 Sankyo Co. Ltd. 240,945
Photographic Equipment --
7,000 Fuji Photo Film 267,323
Printing & Publishing --
12,000 Dai Nippon Printing Co. Ltd. 216,378
Real Estate --
20,000 Daibiru Corp. 220,472
16,000 Hankyu Realty 111,496
5,000 Mitsubishi Estate Co., Ltd. 62,992
Retailing --
2,000 Ito-Yokado Co. Ltd. 95,906
Telecommunications --
180 Nippon Telegraph & Telephone Corp. 126,850
Warehousing --
30,000 Sumitomo Warehouse 147,638
------------
TOTAL JAPAN 5,066,944
------------
MALAYSIA -- 2.5%
Agricultural Production/Services --
33,000 Kumpulan Guthrie Bhd. 51,006
18,000 Malakoff Bhd. 71,705
Automotive --
6,000 Perusahaan Otomobil Nasional Bhd. 35,852
20,000 Tractors Malaysia Holdings Bhd. 34,578
Construction --
42,000 Sunway Building Technology Bhd. 151,416
Construction Materials --
52,000 Kedah Cement Holdings, Bhd. 80,787
55,000 Sungei Way Holdings Bhd. 125,981
Diversified --
48,000 Renong Bhd. 65,777
12,000 United Engineers Ltd. 85,089
</TABLE>
See notes to financial statements.
41
<PAGE> 79
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
MALAYSIA (CONTINUED)
Packaging --
20,000 Malaysian Pacific Industries Bhd. $ 79,672
------------
TOTAL MALAYSIA 781,863
------------
MEXICO -- 2.0%
Diversified --
58,329 ALFA, SA. de C.V., Class A 323,051
Financial Services --
70,000 Grupo Financiero Banamex Accival, SA de CV (Banacci), 149,789
Ser. B *
Real Estate --
8,000 Corporacion GEO, SA. de C.V., Ser. B, ADR * 148,631
------------
TOTAL MEXICO 621,471
------------
NETHERLANDS -- 3.8%
Banking --
1 ING Groep N.V. 39
Chemicals --
2,871 Akzo Nobel 370,147
Computer Software --
8,600 Baan Company, N.V. 451,016
Printing & Publishing --
19,020 Verenigde Nederlandse Uitgeversbedrijvan Verenigd 393,716
Bezit (VNU)
------------
TOTAL NETHERLANDS 1,214,918
------------
PHILIPPINES -- 0.1%
Construction --
48,700 DMCI Holdings Inc. * 24,951
Real Estate --
30,800 Filinvest Land Inc. * 7,247
------------
TOTAL PHILIPPINES 32,198
------------
PORTUGAL -- 3.0%
Telecommunications --
12,509 Portugal Telecom SA * 460,884
5,700 Telecel-Comunicacaoes Pessoais, SA * 490,848
------------
TOTAL PORTUGAL 951,732
------------
</TABLE>
See notes to financial statements.
42
<PAGE> 80
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
SINGAPORE -- 1.3%
Banking --
6,000 Development Bank of Singapore, Ltd. (Foreign) $ 71,285
4,000 United Overseas Bank Ltd. (Foreign) 37,577
Food/Beverage Products --
10,000 Fraser & Neave Ltd. 72,529
Real Estate --
7,000 City Developments, Ltd. 56,572
34,000 DBS Land, Ltd. 109,912
14,000 Singapore Land Ltd. 65,276
------------
TOTAL SINGAPORE 413,151
------------
SWEDEN -- 3.1%
Banking --
42,000 Skandinaviska Enskilda Banken, Class A 428,094
Engineering Services --
290 ABB AB, A Shares * 351,426
Steel --
21,800 Avesta-Sheffield 216,646
------------
TOTAL SWEDEN 996,166
------------
SWITZERLAND -- 6.1%
Banking --
5,000 Banco Santander 376,790
Pharmaceuticals --
265 Ares-Serono Group, Class B 355,852
919 Novartis AG (Registered)* 1,211,608
------------
TOTAL SWITZERLAND 1,944,250
------------
THAILAND -- 0.2%
Metals/Mining --
1,000 Banpu Public Co., Ltd. (Local) 16,227
1,200 Banpu Public Co., Ltd. (Foreign) 18,645
Oil & Gas --
3,100 PTT Exploration and Production Public Co., Ltd. 39,625
(Foreign)
------------
TOTAL THAILAND 74,497
------------
UNITED KINGDOM -- 18.0%
Aerospace --
14,660 British Aerospace PLC 312,102
</TABLE>
See notes to financial statements.
43
<PAGE> 81
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ----------------------------------------------------------------------------------------
UNITED KINGDOM (CONTINUED)
<C> <S> <C>
Airport Services --
34,190 British Airport Authority PLC $ 283,991
Broadcasting --
19,400 Carlton Communications PLC 159,093
Business Services --
25,000 Delphi Group PLC 334,929
106,000 Hambro Countrywide PLC 222,052
Construction Materials --
41,000 Blue Circle Industries, PLC 278,970
68,000 Caradon PLC 274,407
Diversified --
78,226 Cookson Group PLC 275,658
Engineering Services --
104,000 APV PLC 146,930
141,801 Senior Engineering Group PLC 299,352
Food/Beverage Products --
31,377 Allied Domecq PLC 222,410
Hotels/Other Lodging --
92,440 Jarvis Hotels PLC * 232,676
Industrial Components --
19,487 McKechnie Group PLC 156,326
Oil & Gas --
13,000 British-Borneo Petro Syndicate PLC 268,106
16,663 Shell Transport & Trading PLC 294,944
Real Estate --
140,703 TBI PLC 183,933
Retailing --
26,518 Boots Company, PLC 297,993
29,031 Great Universal Stores PLC 300,775
Telecommunications --
58,000 British Telecommunications PLC 426,193
65,000 Vodafone Group PLC 290,800
Utilities --
52,929 National Power PLC 458,551
------------
TOTAL UNITED KINGDOM 5,720,191
------------
TOTAL COMMON STOCK (COST $26,641,303) 28,610,280
------------
</TABLE>
See notes to financial statements.
44
<PAGE> 82
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Value
Shares Issuer (USD)
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
RIGHTS -- 0.0%
--------------
GERMANY --
Automotive --
6,000 Daimler-Benz AG, Rights, 05/13/97 $ 520
------------
WARRANTS -- 0.2%
-----------------
MALAYSIA --
Construction --
60,000 Sunway Building Technology, Bhd., 3.0% Rules, 19,838
Redeemable, Unsecured
24,000 Sunway Building Technology, Bhd., expires 07/11/01 46,847
------------
TOTAL WARRANTS (COST $24,077) 66,685
- ----------------------------------------------------------------------------------------
<CAPTION>
Principal
Amount
- ----------------------------------------------------------------------------------------
<C> <S> <C>
CORPORATE NOTES & BONDS -- 0.0%
-------------------------------
FRANCE --
Banking --
$ 15,840 Societe Generale, 3.5%, 01/01/00 (FRF) (Cost $2,844) 3,280
- ----------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS -- 0.2% 28,680,765
(COST $26,668,224)
- ----------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 6.7%
- ----------------------------------------------------------------------------------------
UNITED STATES -- 6.7%
----------------------
U.S. TREASURY SECURITIES -- 0.8%
U.S. Treasury Bills (USD),
130,000 05/29/97 t 129,490
100,000 05/15/97 t 99,808
10,000 06/05/97 t 9,951
------------
(COST $239,249) 239,249
------------
MONEY MARKET DEPOSIT ACCOUNT -- 0.5%
153,385 Chase Manhattan Bank (USD) @ (Cost $153,385) 153,385
------------
</TABLE>
See notes to financial statements.
45
<PAGE> 83
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal Value
Amount Issuer (USD)
- ----------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- (CONTINUED)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
COMMERCIAL PAPER -- 5.4%
$1,722,000 Household Finance Corp. (USD) (Cost $1,722,000) $ 1,722,000
- ----------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS 2,114,634
(COST $2,114,634)
========================================================================================
TOTAL INVESTMENTS -- 97.0% $ 30,795,399
(COST $28,782,858)
- ----------------------------------------------------------------------------------------
</TABLE>
PURCHASED INDEX FUTURES OUTSTANDING
<TABLE>
<CAPTION>
Number Original Value at
Expiration of Nominal April Unrealized
Description Date Contracts Value 30, 1997 Appreciation
- ------------------------- ---------- --------- -------- -------- ------------
<S> <C> <C> <C> <C> <C>
TSE TOPIX................ 06/13/97 7 $746,850 $798,661 $ 51,811
</TABLE>
- --------------------
# = Security may only be sold to qualified institutional buyers.
* = Non income producing security.
t = All or a portion of this security is pledged to cover financial
futures contracts.
ADR = American Depository Receipt.
@ = Affiliated issuer.
See notes to financial statements.
46
<PAGE> 84
STATEMENT OF ASSETS AND LIABILITIES April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International
Equity
Portfolio
------------
<S> <C>
ASSETS:
Investment securities, at value (Note 1)............................. $ 30,795,399
Cash................................................................. 203
Foreign cash (Cost $2,080,532)....................................... 2,061,269
Receivables:
Investment securities sold......................................... 575,689
Interest and dividends............................................. 159,180
Open forward currency contracts.................................... 50,891
Variation margin receivable on futures contracts................... 22,598
Other assets......................................................... 9,280
-----------
Total Assets................................................... 33,674,509
-----------
LIABILITIES:
Payable for investment securities purchased.......................... 1,868,119
Payable for open forward currency contracts.......................... 22,823
Accrued liabilities: (Note 2)
Custodian.......................................................... 1,587
Other.............................................................. 48,529
-----------
Total Liabilities.............................................. 1,941,058
-----------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS............... $ 31,733,451
===========
Cost of Investments.................................................... $ 28,782,858
===========
</TABLE>
See notes to financial statements.
47
<PAGE> 85
STATEMENT OF OPERATIONS
For the six month period ended April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International
Equity
Portfolio
-----------
<S> <C>
INVESTMENT INCOME:
Dividend.............................................................. $ 285,118
Interest.............................................................. 17,943
Foreign taxes withheld................................................ (33,390)
----------
Total investment income......................................... 269,671
----------
EXPENSES: (Note 2)
Investment Advisory fees.............................................. 162,157
Administration fees................................................... 8,108
Custodian fees........................................................ 24,907
Amortization of organization costs (Note 1)........................... 5,711
Professional fees..................................................... 44,629
Trustees fees......................................................... 180
Other................................................................. 54,299
----------
Total expenses.................................................. 299,991
----------
Less amounts waived................................................... (170,265)
----------
Net expenses........................................................ 129,726
----------
Net investment income............................................... 139,945
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain (loss) on:
Investments......................................................... (399,131)
Foreign currency transactions....................................... 372,220
Change in net unrealized appreciation/depreciation on:
Investments......................................................... 1,476,658
Financial futures contracts......................................... 102,990
Foreign currency contracts and transactions......................... (7,294)
----------
Net realized and unrealized gain...................................... 1,545,443
----------
Net increase in net assets from operations............................ $ 1,685,388
==========
</TABLE>
See notes to financial statements.
48
<PAGE> 86
STATEMENT OF CHANGES IN NET ASSETS
For the periods indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Equity
Portfolio
----------------------------
11/01/96 Year
Through Ended
04/30/97 10/31/96
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income............................... $ 139,945 $ 405,376
Net realized gain (loss) on investments............. (26,911) 3,618,264
Change in net unrealized appreciation/depreciation
on investments and foreign currency
transactions...................................... 1,572,354 (2,439,963)
------------ ------------
Increase (decrease) in net assets from operations... 1,685,388 1,583,677
------------ ------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Contributions....................................... 9,518,449 20,400,056
Withdrawals......................................... (11,790,363) (24,033,082)
------------ ------------
Net increase (decrease) from transactions in
investors' beneficial interests................... (2,271,914) (3,633,026)
------------ ------------
Net increase (decrease) in net assets......... (586,526) (2,049,349)
NET ASSETS:
Beginning of period................................. 32,319,977 34,369,326
------------ ------------
End of period....................................... $ 31,733,451 $ 32,319,977
============ ============
</TABLE>
See notes to financial statements.
49
<PAGE> 87
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES -- International Equity
Portfolio ("the Portfolio") is separately registered under the Investment
Company Act of 1940, as amended, as a non-diversified, open end management
investment company organized as a trust under the laws of the State of New York.
The declaration of trust permits the Trustees to issue beneficial interests in
the Portfolio. The Portfolio 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 Portfolio:
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 Trust's 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 Portfolio 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 Portfolio is
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.
D. Foreign Currency Translation -- The books and records of the Portfolio
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 Portfolio are presented at the foreign
exchange rates and market values at the close of the periods, the Portfolio
does 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.
50
<PAGE> 88
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
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 Portfolio's 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 the 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 Portfolio 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, 1997, the Portfolio held futures contracts as listed in the
Portfolio of Investments.
F. Written Options -- When the 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 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 Portfolio 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, 1997 the Portfolio 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 Portfolio 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 Portfolio intends to continue qualify as a
partnership and therefore net income and net realized gains are taxed to the
partners. Accordingly, no tax provision is recorded by the Portfolio. The
investors in the Portfolio must take into account their proportionate share
of the Portfolio's 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 Portfolio does not intend to distribute to investors its net
investment income or its net realized gains, if any. It is intended that the
Portfolio 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.
51
<PAGE> 89
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A. Investment Advisory Fee -- Pursuant to an Investment Advisory
Agreement, The Chase Manhattan Bank, ("Chase" or the "Adviser") acts as the
Investment Adviser to the Portfolio. Chase is a direct wholly-owned
subsidiary of The Chase Manhattan Corporation. As Investment Adviser, Chase
supervises the investments of the Portfolio 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 Portfolio's average daily net assets. For the period ended
April 30, 1997, the Advisor waived fees of $162,157 for the Portfolio.
Chase Asset Management, Inc. ("CAM"), a registered investment adviser, is
the sub-investment adviser to the Portfolio pursuant to a Sub-Investment
Advisory Agreement between CAM and Chase. CAM is a wholly owned subsidiary
of Chase and is entitled to receive a fee, payable by Chase from its
advisory fee, at an annual rate equal to 0.50% of the Portfolio's average
daily net assets.
B. Custodial Fees -- Chase, as Custodian, provides safekeeping services
for the Portfolio's 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
Portfolio. For these services and facilities, the Administrator receives
from the Portfolio a fee computed at the annual rate equal to 0.05% of the
Portfolio's average daily net assets. For the period ended April 30, 1997,
the Administrator waived fees of $8,108 for the Portfolio.
3. INVESTMENT TRANSACTIONS -- For period ended April 30, 1997, purchases and
sales of investments (excluding short-term investments) were as follows:
<TABLE>
<CAPTION>
<S> <C>
Purchases (excluding U.S. Government)................................. $ 24,128,849
Sales (excluding U.S. Government)..................................... 26,313,076
</TABLE>
The portfolio turnover rate of IEP for the period ended April 30, 1997 was 79%.
The average commission rate per share was $.02382.
4. OPEN FORWARD FOREIGN CURRENCY CONTRACTS -- The following forward foreign
currency contracts were held by the Portfolio.
<TABLE>
<CAPTION>
Delivery Net
Value Market Unrealized
(Local Cost Settlement Value Gain (Loss)
Currency) (USD) Date (USD) (USD)
------------- ----------- --------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Purchases
German Deutsche Mark...... 1,180,000 $ 708,239 06/03/97 $ 685,908 ($ 22,333)
Sales
German Deutsche Mark...... 1,920,000 1,137,461 07/09/97 1,119,052 $ 18,409
UK Sterling............... 790,000 1,288,332 05/29/97 1,288,822 (490)
Italian Lira.............. 1,190,555,400 708,239 06/03/97 695,228 13,013
Japanese Yen.............. 150,000,000 1,214,191 07/09/97 1,194,722 19,469
</TABLE>
5. RETIREMENT PLAN -- The Portfolio has adopted an unfunded noncontributory
defined benefit pension plan covering all independent trustees of the Portfolio
who will have served as independent trustees for at least five years at the time
of retirement. Benefits under this plan are based on compensation and years of
service. Pension expenses for the period ended April 30, 1997, included in
Trustees Fees and Expenses in the Statement of Operations, and accrued pension
liability included in other accrued liabilities, in the Statement of Assets and
Liabilities were $180 and $1,144, respectively.
52
<PAGE> 90
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
6. FOREIGN CASH POSITIONS
<TABLE>
<CAPTION>
Net
Market Unrealized
Local Cost Value Gain (Loss)
Currency (USD) (USD) (USD)
------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
Austrian Schilling............ 1,585,701 $ 130,344 $ 130,120 $ (224)
Australian Dollar............. 100,590 78,520 78,455 (65)
Swiss Franc................... 432,890 296,155 293,883 (2,272)
Spanish Peseta................ (13,408,252) (91,756) (91,856) (100)
French Franc.................. 3,291,260 564,297 564,297 0
UK Sterling................... 270,858 439,087 439,846 759
Hong Kong Dollar.............. 9 1 1 0
Indonesian Rupiah............. 357,811,162 149,021 147,247 (1,774)
Japanese Yen.................. (6,876) 6,916 (54) (6,970)
Malaysian Ringgit............. 73,260 30,130 29,184 (946)
Dutch Guilder................. 827,218 432,250 424,901 (7,349)
Philippines Peso.............. 1,193,275 45,336 45,286 (50)
Singapore Dollar.............. (60) 231 (41) (272)
----------- ----------- ---------
$ 2,080,532 $ 2,061,269 $(19,263)
========== ========== =========
</TABLE>
53
<PAGE> 91
VISTA SERVICE CENTER
P.O. BOX 419392
KANSAS CITY, MO 64179
Investment Adviser, Administrator,
Shareholder and Fund Servicing Agent and Custodian
The Chase Manhattan Bank
Distributor
Vista Fund Distributors, Inc.
Transfer Agent
DST Systems, Inc.
Legal Counsel
Simpson Thacher & Bartlett
Independent Accountants
Price Waterhouse LLP
Vista Mutual Funds are distributed by Vista Fund Distributors, Inc., which is
unaffiliated with The Chase Manhattan Bank. Chase and its respective affiliates
receive compensation from the Vista Funds for providing investment advisory and
other services.
This report is submitted for the general information of the shareholders of the
funds. It is not authorized for distribution to prospective investors in the
funds unless preceded or accompanies 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.
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.
VINTL-3-697
<PAGE> 92
VISTA LOGO
- ------------------------------------------------------------------
- - VISTA GROWTH AND INCOME FUND
(Class A Shares, Class B Shares and Class I Shares)
- -VISTA CAPITAL GROWTH FUND
(Class A Shares, Class B Shares and Class I Shares)
- -VISTA SMALL CAP EQUITY FUND
(Class A Shares, Class B Shares and Class I Shares)
- - VISTA EQUITY INCOME FUND
(Class A and Class B Shares)
- - VISTA LARGE CAP EQUITY FUND
(Class A Shares, Class B Shares and Class I Shares)
- - VISTA AMERICAN VALUE FUND
(Class A Shares)
- -VISTA BALANCED FUND
(Class A Shares and Class B Shares)
- ------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEMIANNUAL REPORT
APRIL 30, 1997
(UNAUDITED)
<PAGE> 93
CONTENTS
Chairman's Letter 1
Fund Commentaries 2
Portfolio of Investments 16
Notes to Financial Statements 52
Per Share Data 64
<PAGE> 94
Vista is in the process of redesigning your Shareholder Reports to include even
more information about your fund, its current investment strategy and how it is
performing.
Watch for the completed redesign when you receive your next Annual Report.
May 23, 1997
Dear Shareholder:
We are pleased to present this Semi-Annual Report for the following Vista U.S.
Equity Funds for the six months ending April 30, 1997:
<TABLE>
<S> <C>
- American Value Fund - Growth & Income Fund
- Balanced Fund - Large Cap Equity Fund
- Capital Growth Fund - Small Cap Equity Fund
- Equity Income Fund
</TABLE>
POSITIVE ECONOMIC FACTORS DRIVE U.S. STOCKS HIGHER
The environment for equities during the period was quite positive, as a
combination of buoyant economic growth, strong corporate earnings and low
inflation drove stock prices higher. The largest U.S. stocks continued to lead
the way, with the S&P 500 Index of large company stocks posting a 14.71% gain
during the period. These outstanding returns, however, were not equaled further
down the capitalization curve as the S&P Mid Cap 400 Index had a 6.88% gain and
the Russell 2000 Index of smaller company stocks returned just 1.61%. This
performance divergence was intensified by the high levels of market volatility,
which caused investors to favor the blue chips as a defensive measure, as well
as by the increasing use of S&P 500 Index funds, which by their nature created
heavy demand for the stocks in the index.
BOND MARKETS ONCE AGAIN EXPERIENCE VOLATILITY
U.S. fixed income markets remained sensitive to fears, as yet unrealized, that
the high levels of economic growth would prove inflationary. Although interest
rates were falling in response to moderating economic growth as the period
began, the trend reversed in early 1997 as stronger economic growth reports were
issued. Rates peaked around the time the Federal Reserve Board raised interest
rates on March 25th.
Regardless of which direction the markets take over the short term, we share
your enthusiasm for investing in the future of corporate America. Our portfolio
management team has worked hard to provide you with investments to help you
reach your financial goals, and will continue to do so in the future. We thank
you for the trust you've placed in Vista, and encourage you to call us at
1-800-34-VISTA if you have any questions.
Sincerely,
/s/ Fergus Reid
Fergus Reid
Chairman
INVESTMENTS IN THE FUNDS ARE NOT DEPOSITS OF, OR GUARANTEED OR ENDORSED BY, THE
CHASE MANHATTAN BANK, AND THE SHARES ARE NOT INSURED BY THE FDIC, FEDERAL
RESERVE BOARD OR ANY OTHER GOVERNMENT AGENCY. INVESTMENTS IN MUTUAL FUNDS
INVOLVE RISK, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED.
<PAGE> 95
VISTA GROWTH AND INCOME FUND
Vista Growth and Income Fund, which seeks capital growth and current income by
investing primarily in common stocks, had a total return of 10.10% (Class A
shares, without sales charges) for the six month period ended April 30, 1997.
SECTOR AND INDIVIDUAL STOCK DECISIONS KEY TO PERFORMANCE
During the reporting period, the Fund's performance was supported by effective
sector allocations. In late 1996, the Fund benefited from its overweight
positions in financial and technology stocks, but the management team
subsequently began cutting the financial exposure due to less-compelling
valuations. The technology overweight was maintained, however, with specific
emphasis on communications, networking and software companies.
As the reporting period progressed, the management team correctly anticipated
that economic growth would accelerate and, therefore, began favoring companies
in sectors such as capital goods, which tend to do well in a growing economy.
Exposure to the energy sector was also increased based on more attractive
valuations.
MID-CAP STOCKS CONTINUE TO LAG
Exposure to mid-cap stocks has always been a unique characteristic of the Fund
and, in the past, these mid-cap investments have typically supported overall
performance. During this reporting period in which large caps dominated,
however, the Fund's mid-cap holdings held back performance. The management team
continues to believe that mid-cap stocks are attractively valued and, over the
long term, should outperform.
Expecting economic growth to moderate as 1997 progresses, the management team is
placing particular emphasis on companies which it believes can maintain
profitability in a slower-growth environment.
2
<PAGE> 96
VISTA GROWTH AND INCOME FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF 4/30/97
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS A SHARES SALES CHARGE SALES CHARGE
------------ ------------
<S> <C> <C>
One Year.................................... 16.73% 11.18%
Five Years.................................. 13.77% 12.67%
Since Inception (9/23/87)................... 22.54% 21.92%
<CAPTION>
WITHOUT WITH
CLASS B SHARES CDSC CDSC*
------------ ------------
<S> <C> <C>
One Year.................................... 16.17% 11.17%
Five Years.................................. 13.36% 11.36%
Since Inception (9/23/87)................... 22.31% 22.31%
<CAPTION>
CLASS I
<S> <C> <C>
One Year.................................... 17.21%
Five Years.................................. 13.90%
Since Inception (9/23/87)................... 22.61%
</TABLE>
* Assumes a 5% CDSC for the one year period and a 0% CDSC for the period since
inception.
GROWTH OF $10,000
<TABLE>
<CAPTION>
LIPPER
VISTA GROWTH GROWTH AND
MEASUREMENT PERIOD AND INCOME INCOME FUNDS S&P 500
(FISCAL YEAR COVERED) FUND AVERAGE INDEX
<S> <C> <C> <C>
09/30/87 9525.00 10000.00 10000.00
09/30/88 13598.50 9192.48 8762.64
09/30/89 19573.79 11607.05 11649.74
09/30/90 20350.07 10345.84 10573.89
09/30/91 31012.43 13336.51 13861.50
09/30/92 35019.15 14685.17 15392.01
09/30/93 42996.77 16994.85 17389.49
09/30/94 42895.59 17514.69 18030.45
09/30/95 52025.27 21572.85 23384.27
09/30/96 60163.37 25332.15 28128.96
04/30/97 67202.58 28500.27 33156.52
</TABLE>
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 Vista Growth and Income Fund, the Lipper Growth and Income Funds
Average and the Standard & Poor's 500 Index from September 30, 1987 to April 30,
1997. The Fund's performance assumes the reinvestment of all dividends and
capital gains. The Fund commenced operations on 9/23/87. Class B Shares and
Class I Shares were introduced on 11/4/93 and 1/24/96, respectively. Investors
should note that information presented for Class B and Class I Shares prior to
their introduction is based upon historical expenses of the predecessor Class A
Shares, which are lower than the actual expenses of the Class B Shares and
higher than Class I Shares. Additionally, annualized figures have been restated
to reflect the maximum 5% contingent deferred sales charge that applies to the
Fund's B Shares. Also, certain fees were waived during the period. Had they not
been waived, total returns would have been lower.
The Lipper Growth and Income Funds Average represents the average performance of
a universe of 576 actively managed growth and income mutual funds. Lipper is an
independent mutual fund performance monitor whose results are based on total
return and do not reflect a sales charge. The Standard & Poor's 500 Index is a
broad-based index that is generally considered representative of the U.S. stock
market. The index is unmanaged and reflects the reinvestment of dividends. An
individual cannot invest in the index.
3
<PAGE> 97
VISTA CAPITAL GROWTH FUND
Vista Capital Growth Fund, which seeks to provide capital growth through a
portfolio that consists primarily of the common stocks of mid-sized companies,
posted a total return of 4.73% for the six months ended April 30, 1997 (Class A
shares, without sales charge).
The Fund was affected by the high levels of volatility among small- and mid-cap
stocks during the reporting period, but still managed to provide shareholders
with a solid, positive return. This was achieved through effective sector
positioning and individual stock selection.
FINANCIAL AND TECHNOLOGY STOCKS KEY TO LATE 1996 PERFORMANCE
The Fund began the period benefiting strongly from overweight positions in the
financial and technology sectors, positions which were taken based on the
management team's belief that economic growth would slow in the fall of 1996.
Vista's stock selection system proved especially helpful in the technology area,
as the Fund profited from holdings which had been purchased at attractive prices
during last summer's volatility.
As 1996 ended with the management team expecting accelerating economic growth,
the Fund began taking profits on its technology holdings and also reducing
exposure to financial stocks. Many of these assets were repositioned in cyclical
sectors such as capital goods. This shift was based on valuation concerns as
well as the fact that, historically, interest-rate sensitive sectors (i.e.,
financials) tend to suffer in a stronger economy while cyclical sectors have
historically outperformed.
FUND MAINTAINS A STRICT VALUE DISCIPLINE
As small- and mid-cap stocks experienced widespread weakness in early 1997, the
Fund maintained its strict value discipline. The management team took advantage
of falling stock prices to purchase what it believed were high-quality stocks at
newly-attractive prices, particularly in the technology area. Underlying many of
the investment selections was the belief that the market will eventually reward
companies exhibiting the ability to maintain earnings growth, especially in the
moderating economic environment Vista's research forecasts for later in 1997.
As the reporting period ended, small- and mid-cap stock prices had begun
recovering and were beginning to show signs of re-establishing their historic
market leadership. Although the Fund has performed very well during the
large-cap dominated rally that began in 1995, the management team believes it is
particularly well positioned for an environment that focuses more intensively on
valuation and visible earnings growth.
4
<PAGE> 98
VISTA CAPITAL GROWTH FUND
AVERAGE ANNUAL TOTAL RETURNS
AS OF 4/30/97
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS A SHARES SALES CHARGE SALES CHARGE
------------ ------------
<S> <C> <C>
One Year.................................. 11.16% 5.88%
Five Years................................ 14.87% 13.76%
Since Inception (9/23/87)................. 19.86% 19.26%
<CAPTION>
WITHOUT WITH
CLASS B SHARES CDSC CDSC*
------------ ------------
<S> <C> <C>
One Year.................................. 9.69% 4.81%
Five Years................................ 14.48% 12.48%
Since Inception (9/23/87)................. 19.65% 19.65%
<CAPTION>
CLASS I
<S> <C> <C>
One Year.................................. 11.55%
Five Years................................ 14.99%
Since Inception (9/23/87)................. 19.93%
</TABLE>
* Assumes a 5% CDSC for the one year period and a 0% CDSC for the period since
inception.
GROWTH OF $10,000
<TABLE>
<CAPTION>
VISTA LIPPER MID-
MEASUREMENT PERIOD CAPITAL CAP FUNDS RUSSELL 2000
(FISCAL YEAR COVERED) GROWTH FUND AVERAGE INDEX
<S> <C> <C> <C>
09/30/87 9525.00 10000.00 10000.00
09/30/88 11072.63 8932.07 8924.69
09/30/89 17430.86 11749.12 10845.59
09/30/90 14407.39 9979.29 7900.99
09/30/91 23303.73 14830.87 11465.35
09/30/92 27299.59 15983.38 12489.50
09/30/93 36691.80 20341.51 16632.04
09/30/94 37628.98 20702.36 17066.89
09/30/95 44145.36 26597.63 21062.87
09/30/96 51346.60 30982.54 23840.06
04/30/97 54336.05 30282.09 26214.30
</TABLE>
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 Vista Capital Growth Fund, the Lipper Mid-Cap Funds Average and the
Russell 2000 Index from September 30, 1987 through April 30, 1997. The Fund's
performance includes a 4.75% sales charge and assumes the reinvestment of all
dividends and capital gains. The Fund commenced operations on 9/23/87. Class B
Shares and Class I Shares were introduced on 11/4/93 and 1/24/96, respectively.
Investors should note that information presented for Class B and Class I Shares
prior to their introduction is based upon historical expenses of the predecessor
Class A Shares, which are lower than the actual expenses of the Class B Shares
and higher than Class I Shares. Additionally, annualized figures have been
restated to reflect the maximum 5% contingent deferred sales charge that applies
to the Fund's B Shares. Also, certain fees were waived during the period. Had
they not been waived, total returns would have been lower.
The Lipper Mid-Cap Growth Funds Average represents the average performance of a
universe of 172 actively-managed stock mutual funds. Lipper is an independent
mutual fund performance monitor whose results are based on total return and do
not reflect a sales charge. The Russell 2000 Index tracks the shares of 2,000
small-capitalization companies. The index is unmanaged and reflects the
reinvestment of dividends. An individual cannot invest in the index.
5
<PAGE> 99
VISTA SMALL CAP EQUITY FUND
Vista Small Cap Equity Fund, which seeks capital growth by investing in small
cap common stocks, had a total return of -4.73% (Class A Shares, without sales
charges) for the six months ended April 30, 1997.
MANAGING IN A DIFFICULT PERIOD FOR SMALLER STOCKS
Although the Fund has been an outstanding performer since its inception in 1995,
it was unable to overcome the weakness in small cap issues during the reporting
period. The market was particularly harsh in March of 1997, when it uniformly
punished small company stocks with little regard for individual companies'
business prospects. Relying on Vista's disciplined five-step stock management
system, the management team was able to take advantage of the volatility to buy
what it believed were high-quality companies at newly-attractive prices.
The Fund began the period reducing a large cash position created by strong
investor interest, and throughout the period maintained relative diversification
by industry sector. As small cap prices fell, however, the manager was able to
increase holdings in growth-oriented technology and health care companies whose
prices had previously been too high for the Fund to purchase given its focus on
undervalued stocks.
As the reporting period ended, small-cap stock prices had begun recovering and
were beginning to show signs of re-establishing their historic market
leadership. Going forward, the management team believes that compelling
valuations make this an outstanding time for small cap investments.
FUND CLOSES TO NEW INVESTORS
With the Fund reaching $500 million in assets, it was closed to new investors on
January 20, 1997. This action was taken, in accordance with the Fund's
prospectus, to ensure that the manager has sufficient flexibility in the small
cap market.
6
<PAGE> 100
VISTA SMALL CAP EQUITY FUND
AVERAGE ANNUAL TOTAL RETURNS
AS OF 4/30/97
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS A SHARES SALES CHARGE SALES CHARGE
------------ ------------
<S> <C> <C>
One Year.................................... -0.97% -5.67%
Since Inception (12/20/94).................. 30.00% 27.36%
<CAPTION>
WITHOUT WITH
CLASS B SHARES CDSC CDSC*
------------ ------------
<S> <C> <C>
One Year.................................... -1.58% -6.43%
Since Inception (12/20/94).................. 29.17% 28.27%
<CAPTION>
CLASS I
<S> <C> <C>
One Year.................................... -5.90%
Since Inception (12/20/94).................. 30.22%
</TABLE>
* Assumes a 5% CDSC for the one year period and a 3% CDSC for the period since
inception.
GROWTH OF $10,000
<TABLE>
<CAPTION>
VISTA SMALL LIPPER SMALL
MEASUREMENT PERIOD CAP EQUITY CO. FUNDS RUSSELL 2000
(FISCAL YEAR COVERED) FUND AVERAGE INDEX
<S> <C> <C> <C>
12/31/94 9525.00 10000.00 10000.00
09/30/95 13933.04 12856.51 12573.08
09/30/96 18225.76 15318.04 14230.88
04/30/97 17052.08 14478.74 15648.14
</TABLE>
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 Vista Small Cap Equity Fund, The Lipper Small Company Funds Average
and the Russell 2000 Index from December 31, 1994 to April 30, 1997. The Fund's
performance includes a 4.75% sales charge and assumes the reinvestment of all
dividends and capital gains. The Fund commenced operations on 12/20/94. Class B
Shares and Class I Shares were introduced on 3/28/95 and 5/7/96, respectively.
Investors should note that information presented for Class B and Class I Shares
prior to their introduction is based upon historical expenses of the predecessor
Class A Shares, which are lower than the actual expenses of the Class B Shares
and higher than Class I Shares. Additionally, annualized figures have been
restated to reflect the maximum 5% contingent deferred sales charge that applies
to the Fund's B Shares. Also, certain fees were waived during the period. Had
they not been waived, total returns would have been lower.
The Lipper Small Company Funds Average represents the average performance of a
universe of 429 actively managed stock mutual funds. Lipper is an independent
mutual fund performance monitor whose results are based on total return and do
not reflect a sales charge.
The Russell 2000 Index tracks the shares of 2,000 small-capitalization
companies. The index is unmanaged and reflects the reinvestment of dividends. An
individual cannot invest in the index.
Small capitalization funds typically carry more risk than stock funds investing
in well-established "blue-chip" companies since smaller companies generally have
a higher risk of failure. Historically, smaller companies' stock has experienced
a greater degree of market volatility than the average stock.
7
<PAGE> 101
VISTA EQUITY INCOME FUND
The Vista Equity Income Fund, which seeks to provide current income plus
opportunities for capital growth by investing primarily in income-producing
equity securities, delivered a total return of 12.74% for the six months ended
April 30, 1997 (Class A shares, without sales charge).
REITs HELPED FUND DELIVER INCOME & CAPITAL APPRECIATION
The Fund was successful in achieving its objective through the use of a barbell
strategy. Using this strategy, the management team invests in two types of
securities: those with high dividend yields as well as those which the
management team believes offer the potential for capital appreciation.
The Fund began the reporting period with a continued overweight position in Real
Estate Investment Trusts (REITs), which helped the Fund gain both high income
and capital appreciation for most of 1996. By the end of the year, however, the
management team had begun cutting REIT exposure as many of these holdings had
reached Vista's 1997 price targets.
FUND RE-FOCUSED FOR FASTER GROWTH IN EARLY 1997
Early in 1997, correctly anticipating accelerating economic growth, the
management team completed a shift from interest rate-sensitive sectors such as
financials and REITs to those which tend to perform better in a growing economy.
Additionally, on a valuation basis, the Fund began rebuilding its exposure to
the energy sector. While these energy holdings have lagged the market, their
valuations remain attractive given individual company considerations.
The management team expects that volatility will continue to define the stock
market. In such an environment, the Fund's barbell strategy is particularly
useful for overall total return because high levels of income can help offset
falling prices. At the same time, Vista's disciplined stock management system
identifies attractively-valued companies which provide the potential for capital
appreciation.
8
<PAGE> 102
VISTA EQUITY INCOME FUND
AVERAGE ANNUAL TOTAL RETURNS
AS OF 4/30/97
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS A SHARES SALES CHARGE SALES CHARGE
------------ ------------
<S> <C> <C>
One Year.................................. 22.75% 17.23%
Since Inception (7/15/93)................. 16.81% 15.41%
<CAPTION>
WITHOUT WITH
CLASS B SHARES CDSC CDSC*
------------ ------------
<S> <C> <C>
One Year.................................. 21.80% 16.80%
Since Inception (7/15/93)................. 16.57% 16.06%
</TABLE>
* Assumes a 5% CDSC for the one year period and a 3% CDSC for the period since
inception.
GROWTH OF $10,000
<TABLE>
<CAPTION>
LIPPER
EQUITY
MEASUREMENT PERIOD VISTA EQUITY INCOME FUNDS
(FISCAL YEAR COVERED) INCOME FUND AVERAGE S&P 500
<S> <C> <C> <C>
06/30/93 9550.00 10000.00 10000.00
09/30/93 10239.00 10454.35 10257.89
09/30/94 9969.82 10657.02 10635.98
09/30/95 11982.24 12780.90 13794.15
09/30/96 14742.24 14894.09 17227.47
04/30/97 17223.55 16751.02 20306.58
</TABLE>
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 Vista Equity Income Fund, the Lipper Equity Income Funds Average and
the Standard & Poor's 500 Stock Index from July 31, 1993 through April 30, 1997.
The Fund's performance includes a 4.50% sales charge and assumes the
reinvestment of all dividends and capital gains. The Fund commenced operations
on 7/15/93. Class B Shares were introduced on 5/6/96. Investors should note that
information presented for Class B Shares prior to their introduction is based
upon historical expenses of the predecessor Class A Shares, which are lower than
the actual expenses of the Class B Shares. Additionally, annualized figures have
been restated to reflect the maximum 5% contingent deferred sales charge that
applies to the Fund's B Shares. Also, certain fees were waived during the
period. Had they not been waived, total returns would have been lower.
The Lipper Equity Income Funds Average represents the average performance of a
universe of 181 actively managed mutual funds that invest in income-producing
equity securities. Lipper is an independent mutual fund performance monitor
whose results are based on total return and do not reflect a sales charge.
The Standard & Poor's 500 Stock Index is a broad-based index that is generally
considered representative of the U.S. stock market. The index is unmanaged and
reflects the reinvestment of dividends. An individual cannot invest in the
index.
9
<PAGE> 103
VISTA LARGE CAP EQUITY FUND
Vista Large Cap Equity Fund, which seeks to provide capital growth through a
portfolio of large cap common stocks, provided shareholders with a total return
of 11.16% (Class A shares, without sales charges) for the six months ended April
30, 1997.
MARKET ENVIRONMENT FAVORS LARGE CAP COMPANIES
The Fund participated strongly in a market environment that favored the largest
companies. In late 1996, the Fund benefited from its overweight positions in
financial and technology stocks, but the management team subsequently began
cutting the financial exposure due to less-compelling valuations. The technology
overweight was maintained, however, with specific emphasis on communications,
networking and software companies.
As the reporting period progressed, the management team correctly anticipated
that economic growth would accelerate and, therefore, began favoring companies
in sectors such as capital goods, which tend to do well in a growing economy.
Exposure to the energy sector was also increased based on more attractive
valuations.
MANAGEMENT TEAM MAINTAINS FOCUS ON VALUATION
While the Fund has clearly benefited from the market's large cap bias, the
management team has continued to apply Vista's disciplined five-step stock
management system to help protect shareholders against overpaying for individual
holdings. By maintaining a widely-diversified approach and focusing on
individual stock selection, the management team looks to use periods of
volatility to buy high-quality holdings at what it believes are attractive
prices.
10
<PAGE> 104
VISTA LARGE CAP EQUITY FUND
AVERAGE ANNUAL TOTAL RETURNS
AS OF 4/30/97
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS A SHARES SALES CHARGE SALES CHARGE
------------ ------------
<S> <C> <C>
One Year.................................... 20.60% 14.87%
Five Years.................................. 15.11% 13.99%
Since Inception (11/30/90).................. 16.49% 15.61%
<CAPTION>
WITHOUT WITH
CLASS B SHARES CDSC CDSC*
------------ ------------
<S> <C> <C>
One Year.................................... 20.14% 15.14%
Five Years.................................. 15.02% 13.03%
Since Inception (11/30/90).................. 16.42% 16.42%
<CAPTION>
CLASS I
<S> <C> <C>
One Year.................................... 21.59%
Five Years.................................. 15.30%
Since Inception (11/30/90).................. 16.64%
</TABLE>
* Assumes a 5% CDSC for the one year period and a 0% CDSC for the period since
inception.
GROWTH OF $10,000
<TABLE>
<CAPTION>
VISTA LARGE LIPPER
MEASUREMENT PERIOD CAP EQUITY GROWTH FUNDS S&P 500
(FISCAL YEAR COVERED) FUND AVERAGE INDEX
<S> <C> <C> <C>
11/30/90 10000.00 10000.00 10000.00
09/30/91 12314.35 12966.60 12366.81
09/30/92 13535.57 14050.78 13732.29
09/30/93 14932.43 16610.92 15514.38
09/30/94 15608.51 16867.95 16086.22
09/30/95 19486.24 21267.37 20862.74
09/30/96 23617.13 24671.54 25095.80
04/30/97 26858.94 26552.35 29581.24
</TABLE>
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 I
shares of the Vista Large Cap Equity Fund, the Lipper Growth Funds Average and
the Standard & Poor's 500 Index from November 30, 1990 to April 30, 1997. The
Fund's performance does not include a sales charge and assumes the reinvestment
of all dividends and capital gains. The Fund commenced operations on 11/30/90.
Class A Shares and Class B Shares were introduced on 5/6/96. Investors should
note that information presented for A and B Shares prior to their introduction
is based upon historical expenses of the predecessor Class I Shares, which are
lower than the actual expenses of the A and B Shares. Additionally, annualized
figures have been restated to reflect the maximum 4.75% front-end sales charge
(A Shares) and 5% contingent deferred sales charge (B Shares). Class I Shares
have a $1,000,000 minimum initial deposit and carry no sales charge. Also,
certain fees were waived during the period. Had they not been waived, total
returns would have been lower.
The Lipper Growth Funds Average represents the average performance of a universe
of 729 actively managed growth mutual funds. Lipper is an independent mutual
fund performance monitor whose results are based on total return and do not
reflect a sales charge.
The Standard & Poor's 500 Index is a broad-based index that is generally
considered representative of the U.S. stock market. The index is unmanaged and
reflects the reinvestment of dividends. An individual cannot invest in the
index.
11
<PAGE> 105
VISTA AMERICAN VALUE FUND
Vista American Value Fund, which seeks to maximize total return by investing in
a portfolio of well-established U.S. company equity securities, provided
shareholders with a total return of 6.08% for the six-month period ended April
30, 1997.
LARGEST US STOCKS POST STRONGEST PERFORMANCE
Over the past six months, investors continued to concentrate their purchases in
a select group of the largest, most liquid stocks in the S&P 500, and these
companies continued to produce the strongest gains during the period.
This performance disparity resulted in a significant divergence in the
underlying valuations of many individual stocks. As a group, the largest 100
companies in the S&P 500 Index, which includes many of the largest consumer
non-durable and technology companies, were selling at more than 19 times
earnings, over five times book value and almost two-and-a-half times sales. The
advisor to the Fund did not consider these valuations attractive in relation to
the group's long-term earnings capability. As such, the Fund did not have
significant exposure to this select group, causing its lag against the S&P 500,
which returned 14.71% for the period.
This contrasts with the smallest 100 companies in the S&P 500, many of which are
well-established, more economically sensitive businesses. As a group, these
companies were selling for ten times earnings, a little over two times book
value and about one times sales. The Fund's advisor considered these valuations
more attractive relative to long-term earning capability. This resulted in the
Fund being overweight in areas such as basic materials, financial services and
consumer cyclicals.
On April 30, common stocks represented 90.2% of the portfolio, which was
diversified among 44 issues in 11 broad economic sectors. The top five stock
holdings at period end included Allstate, Supervalu, Louisiana Pacific, Stratus
Computer and Merck.
A FOCUS ON POTENTIAL LONG-TERM PRICE APPRECIATION
Fund holdings are selected for their long-term potential and are often unpopular
with other investors. In some cases, considerable time may elapse before their
values are recognized by other investors, which can result in these issues
becoming market leaders. The Fund's advisor continues to seek attractive issues
in the capital goods, communication services and consumer cyclical sectors.
12
<PAGE> 106
VISTA AMERICAN VALUE FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF 4/30/97
<TABLE>
<S> <C>
One Year................................. 13.65%
Since Inception (2/3/95)................. 19.68%
</TABLE>
GROWTH OF $10,000
<TABLE>
<CAPTION>
VISTA LIPPER
MEASUREMENT PERIOD AMERICAN GROWTH FUNDS S&P 500
(FISCAL YEAR COVERED) VALUE FUND AVG. INDEX
<S> <C> <C> <C>
2/28/95 10000.00 10000.00 10000.00
9/30/95 11555.10 12235.15 12171.40
9/30/96 13586.01 14193.57 14640.99
04/30/97 14852.38 15275.60 17257.81
</TABLE>
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 shares of
Vista American Value Fund, the Lipper Growth Funds Average and the Standard &
Poor's 500 Index from February 28, 1995 to April 30, 1997. The Fund's
performance assumes the reinvestment of all dividends and capital gains. The
Fund does not impose a sales charge on purchases; therefore, performance is
based on the net asset value. Also, certain fees were waived during the period.
Had they not been waived, total returns would have been lower.
The Lipper Growth Funds Average represents the average performance of a universe
of 729 actively managed growth mutual funds. Lipper is an independent mutual
fund performance monitor whose results are based on total return and do not
reflect a sales charge.
The Standard & Poor's 500 Index is a broad-based index that is generally
considered representative of the U.S. stock market. The index is unmanaged and
reflects the reinvestment of dividends. An individual cannot invest in the
index.
13
<PAGE> 107
VISTA BALANCED FUND
Vista Balanced Fund, which seeks to provide capital growth plus current income
by investing in a portfolio of high-quality stocks, bonds and convertible
securities, had a total return of 6.38% (Class A shares, without sales charges)
for the six months ended April 30, 1997.
SLIGHT ALLOCATION SHIFTS SEEK TO INCREASE RETURNS
The Fund's management team made tactical shifts throughout the reporting period
to capitalize on the changing relative values of stocks, bonds and cash.
On the equity side, the Fund's performance was supported by effective sector
allocations. In late 1996, the Fund benefited from its overweight positions in
financial and technology stocks, but the management team subsequently began
cutting the financial exposure due to less-compelling valuations. The technology
overweight was maintained, however, with specific emphasis on communications,
networking and software companies.
As the reporting period progressed, the management team correctly anticipated
that economic growth would accelerate and, therefore, began favoring companies
in cyclical sectors such as capital goods which tend to do well in a growing
economy. Exposure to the energy sector was also increased based on more
attractive valuations.
MORTGAGE-BACKED AND CORPORATE SECURITIES EMPHASIZED
On the fixed-income side, the Fund began the reporting period with a slight
overweighting of mortgage-backed securities as well as selected corporate
securities. This emphasis helped the Fund perform well as mortgages and
corporates were the top-performing sectors in early 1997 and, subsequently, as
rates began an uptrend in February. At that point, the management team reduced
duration to neutral and adopted a barbell strategy that sought to take advantage
of stronger relative values at the short and long ends of the yield curve. As
the reporting period ended, the Fund took profits on some of its mortgage-backed
securities but maintained a relatively-neutral sector allocation.
Moving forward, the management team expects economic growth in the U.S. to
moderate and, therefore, anticipates significant opportunities in both the stock
and bond markets.
14
<PAGE> 108
VISTA BALANCED FUND
AVERAGE ANNUAL TOTAL RETURNS
AS OF 4/30/97
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS A SHARES SALES CHARGE SALES CHARGE
------------ ------------
<S> <C> <C>
One Year............................. 13.67% 8.56%
Since Inception (11/4/92)............ 13.27% 12.11%
<CAPTION>
WITHOUT WITH
CLASS B SHARES CDSC CDSC*
------------ ------------
<S> <C> <C>
One Year............................. 12.90% 7.90%
Since Inception (11/4/92)............ 12.62% 12.32%
</TABLE>
* Assumes a 5% CDSC for the one year period and a 2% CDSC for the period since
inception.
GROWTH OF $10,000
<TABLE>
<CAPTION>
LIPPER
MEASUREMENT PERIOD VISTA BALANCED LEHMAN
(FISCAL YEAR BALANCED FUNDS S&P 500 AGGREGATE
COVERED) FUND AVERAGE INDEX BOND INDEX
<S> <C> <C> <C> <C>
10/31/92 9550.00 10000.00 10000.00 10000.00
10/31/93 11244.37 11461.26 11492.52 11187.04
10/31/94 11419.83 11373.97 11935.97 10775.89
10/31/95 13441.17 13432.32 15086.48 12462.63
10/31/96 15711.56 15419.31 18715.79 13189.52
4/30/97 16713.96 16380.22 21468.39 13414.73
</TABLE>
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 Vista Balanced Fund and the Lipper Balanced Funds Average from
November 30, 1992 through April 30, 1997. The Fund's performance includes a
4.50% sales charge and assumes the reinvestment of all dividends and capital
gains. The Fund commenced operations on 11/4/92. Class B Shares were introduced
on 11/4/93. Investors should note that information presented for Class B Shares
prior to their introduction is based upon historical expenses of the predecessor
Class A Shares, which are lower than the actual expenses of the Class B Shares.
Additionally, annualized figures have been restated to reflect the maximum 5%
contingent deferred sales charge that applies to the Fund's B Shares. Also,
certain fees were waived during the period. Had they not been waived, total
returns would have been lower.
The Lipper Balanced Funds Average represents the average performance of a
universe of 296 actively managed balanced mutual funds. Lipper is an independent
mutual fund performance monitor whose results are based on total return and do
not reflect a sales charge.
Standard & Poor's 500 Index is a broad-based index that is generally considered
representative of the U.S. Stock market. The Lehman Aggregate Bond Index is
composed of the Lehman Government/Corporate Index and the Mortgage-backed
Securities Index and includes U.S. Treasury and agency issues and corporate and
mortgage-backed bonds. The indexes are unmanaged and reflects the reinvestment
of dividends. An individual cannot invest in the index.
15
<PAGE> 109
VISTA SMALL CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- 82.1%
------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 81.7%
--------------------------------------------------------
ADVERTISING -- 1.2%
196,250 Outdoor Systems, Inc. $ 5,445,937
-------------
AEROSPACE -- 1.3%
40,000 Doncasters PLC, ADR (United Kingdom) 900,000
93,500 Precision Castparts Corp. 5,002,250
-------------
5,902,250
-------------
AGRICULTURAL PRODUCTION/SERVICES -- 0.8%
85,000 AGCO Corp. 2,199,375
125,000 Northland Cranverries, Inc., Class A 1,437,500
-------------
3,636,875
-------------
AIRLINES -- 0.9%
125,000 Continental Airlines, Inc., Class B * 3,968,750
-------------
AUTOMOTIVE -- 2.1%
140,500 Dura Automotive Systems, Inc. 3,793,500
150,000 Tower Automotive, Inc. 5,550,000
-------------
9,343,500
-------------
BANKING -- 1.7%
11,000 Aspen Bancshares, Inc. 228,250
70,000 Peoples Heritage Financial Group, Inc. 2,196,250
40,000 Zions Bancorporation 5,060,000
-------------
7,484,500
-------------
BIOTECHNOLOGY -- 0.7%
100,000 Pharmaceutical Product Development, Inc. 1,675,000
122,500 Physio-Control International Corp. 1,531,250
-------------
3,206,250
-------------
BROADCASTING -- 1.4%
50,000 Chancellor Corp. 1,400,000
80,000 Heftel Broadcasting Corp. 4,000,000
25,000 Univision Communications Inc. 850,000
-------------
6,250,000
-------------
BUSINESS SERVICES -- 5.5%
206,900 American Residential Services, Inc. 3,905,238
220,000 CORT Business Services Corp. 5,637,500
70,000 DeVRY, Inc. 1,540,000
30,300 Fair Issac & Company, Inc. 958,237
125,000 Fiserv, Inc. 4,718,750
</TABLE>
See notes to financial statements.
16
<PAGE> 110
VISTA SMALL CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
<S> <C> <C>
BUSINESS SERVICES -- (continued)
99,000 Interim Services, Inc. $ 3,836,250
57,500 ITT Educational Services, Inc. * 1,308,125
30,000 Metzler Group, Inc. 765,000
95,000 NCO Group, Inc. 1,971,250
-------------
24,640,350
-------------
CHEMICALS -- 0.4%
60,000 OM Group, Inc. 1,672,500
-------------
COMMERCIAL SERVICES -- 0.3%
100,000 PMT Services, Inc. 1,187,500
-------------
COMPUTER SOFTWARE -- 6.2%
235,000 American Management Systems, Inc. * 5,816,250
21,700 Aspen Technologies, Inc. * 659,138
125,000 Clarify, Inc. 1,070,312
245,000 Datastream Systems, Inc. * 3,123,750
245,000 Hyperion Software Corp. 3,981,250
238,500 Integrated Systems, Inc. 2,295,563
135,000 Mastech Corp. 1,552,500
40,000 Pure Atria Corp. * 390,000
155,000 Rational Software Corp. 2,140,937
55,000 Remedy Corp. 1,780,625
175,000 Vanstar Corp. * 1,290,625
151,875 Wind River Systems 3,493,125
-------------
27,594,075
-------------
COMPUTERS/COMPUTER HARDWARE -- 1.8%
120,000 Applied Magnetics Corp. * 3,015,000
57,000 HMT Technology Corp. 627,000
155,000 Integrated Measurement Systems, Inc. 2,053,750
75,000 Micros Systems, Inc. * 2,521,875
-------------
8,217,625
-------------
CONSTRUCTION MATERIALS -- 4.0%
300,000 Apogee Enterprises, Inc. 4,500,000
91,000 Barnett, Inc. 1,683,500
100,000 NCI Building Systems, Inc. 3,100,000
147,400 Southdown, Inc. 5,324,825
190,000 Wilmar Industries, Inc. 3,135,000
-------------
17,743,325
-------------
</TABLE>
See notes to financial statements.
17
<PAGE> 111
VISTA SMALL CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER PRODUCTS/SERVICES -- 1.2%
120,000 Equity Corp. $ 2,580,000
175,000 Furniture Brands International, Inc. 2,581,250
-------------
5,161,250
-------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 7.6%
75,000 ANADIGICS, Inc. * 2,118,750
23,700 Berg Electronics Corp. 711,000
125,000 Etec Systems, Inc. * 3,640,625
35,000 ITI Technologies, Inc. * 520,625
47,000 Microchip Technology, Inc. * 1,468,750
200,000 MRV Communications Inc. 4,125,000
150,000 Perceptron Inc. 4,237,500
130,000 QLogic Corp. 2,600,000
25,000 Sawtek, Inc. 740,625
125,000 Sipex Corp. 3,000,000
94,000 Teleflex, Inc. 5,428,500
75,000 Tencor Instruments 3,328,125
35,000 Triquint Semiconductor, Inc. * 1,041,250
38,500 Waters Corp. 1,140,563
-------------
34,101,313
-------------
ENTERTAINMENT/LEISURE -- 2.6%
170,000 Cinar Films, Inc. 3,867,500
196,300 Coachmen Industries, Inc. 3,361,637
131,000 K2, Inc. 3,422,375
74,000 RockShox, Inc. 1,114,625
-------------
11,766,137
-------------
ENVIRONMENTAL SERVICES -- 2.7%
114,800 Newpark Resources, Inc. 5,151,650
165,000 United Waste Systems, Inc. 5,568,750
45,900 U.S.A. Waste Services, Inc. 1,503,225
-------------
12,223,625
-------------
FINANCIAL SERVICES -- 0.8%
120,000 Winthrop Resources Corp. 3,645,000
-------------
FOOD/BEVERAGE PRODUCTS -- 1.3%
150,000 Morningstar Group, Inc. 3,637,500
155,000 Twinlab Corp. 2,053,750
-------------
5,691,250
-------------
</TABLE>
See notes to financial statements.
18
<PAGE> 112
VISTA SMALL CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
<S> <C> <C>
HEALTH CARE/HEALTH CARE SERVICES -- 8.6%
50,000 Advanced Technology Labs, Inc. $ 1,656,250
43,700 Alternative Living Services, Inc. 721,050
138,000 American Medserve Corp. 1,500,750
105,000 Assisted Living Concepts 2,310,000
50,000 Biopsys Medical, Inc. * 1,025,000
150,000 Conceptus, Inc. 1,500,000
35,000 Emeritus Corp. 428,750
50,000 Endocardial Solutions, Inc. 406,250
90,000 Enterprise Systems, Inc. * 2,092,500
151,500 ESC Medical Systems Ltd. 4,071,563
95,800 Henry Schein, Inc. 2,658,450
150,000 Liposome Co., Inc. 3,328,125
50,000 Nitinol Medical Technologies 425,000
75,000 Novoste Corp. 1,031,250
80,000 Perclose, Inc. 1,980,000
75,000 Physician Sales & Service, Inc. 1,087,500
52,500 SeaMed Corp. 892,500
50,000 Sierra Health Services, Inc. 1,287,500
135,000 Tenet Healthcare Corp. * 3,510,000
171,000 Universal Health Services, Inc., Class B * 6,476,625
-------------
38,389,063
-------------
HOME BUILDING CONSTRUCTION -- 0.6%
115,000 Pacific Greystone Corp. 1,696,250
112,500 Southern Energy Homes, Inc. 1,167,187
-------------
2,863,437
-------------
HOTELS/OTHER LODGING -- 0.7%
175,000 Homestead Village, Inc. 3,018,750
-------------
INSURANCE -- 3.5%
96,000 American Bankers Insurance Group, Inc. 5,076,000
86,000 CMAC Investment Corp. 3,268,000
90,000 Equitable of Iowa Companies 4,398,750
267,300 Reliance Group Holdings, Inc. 2,973,713
-------------
15,716,463
-------------
</TABLE>
See notes to financial statements.
19
<PAGE> 113
VISTA SMALL CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
<S> <C> <C>
MACHINERY & ENGINEERING EQUIPMENT -- 2.0%
49,200 Allied Products Corp. $ 1,562,100
122,000 Applied Power, Inc., Class A 5,169,750
130,000 Rental Service Corp. 2,405,000
-------------
9,136,850
-------------
MANUFACTURING -- 1.1%
165,000 Pentair, Inc. 4,929,375
-------------
METALS/MINING -- 0.7%
84,000 Valmont Industries 3,349,500
-------------
OIL & GAS -- 3.3%
150,000 Mitchell Energy & Development, Class B 2,868,750
90,000 Nuevo Energy Co. 3,093,750
75,000 Smith International * 3,553,125
90,000 Production Operations Corp. 5,175,000
-------------
14,690,625
-------------
PHARMACEUTICALS -- 0.2%
40,000 Andrx Corp. 850,000
-------------
PRINTING & PUBLISHING -- 0.4%
225,000 Golden Books Family Entertainment, Inc. 1,856,250
-------------
REAL ESTATE INVESTMENT TRUST -- 1.9%
122,000 Arden Realty Group, Inc. 3,034,750
125,000 Innkeepers USA Trust 1,750,000
95,000 Kilroy Realty Corp. 2,232,500
42,000 Storage USA, Inc. 1,580,250
-------------
8,597,500
-------------
RESTAURANTS/FOOD SERVICES -- 0.4%
30,000 Applebee's International, Inc. 701,250
33,750 Papa John's International, Inc. 869,062
-------------
1,570,312
-------------
RETAILING -- 6.7%
132,000 99 Cents Only Stores 2,854,500
130,000 Cole National Corp., Class A 4,290,000
70,000 Friedman's Inc., Class A 1,181,250
280,000 Hollywood Entertainment Corp. 5,985,000
57,500 Marks Bros. Jewelers, Inc. 639,688
</TABLE>
See notes to financial statements.
20
<PAGE> 114
VISTA SMALL CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
<S> <C> <C>
RETAILING -- (continued)
25,000 Nieman-Marcus Group, Inc. $ 656,250
225,000 Petco Animal Supplies, Inc. 4,809,375
60,000 Quality Food Centers, Inc. 2,407,500
150,000 Stage Stores, Inc. 3,112,500
76,000 U.S. Rentals, Inc. 1,444,000
80,000 Williams-Sonoma, Inc. 2,480,000
-------------
29,860,063
-------------
SHIPPING/TRANSPORTATION -- 2.2%
175,000 Coach USA, Inc. 4,462,500
95,000 Hub Group, Inc., Class A 2,517,500
44,000 Knight Transportation, Inc. 957,000
52,000 Landstar System, Inc. * 1,332,500
25,000 Mark VII, Inc. * 700,000
-------------
9,969,500
-------------
STEEL -- 0.5%
162,300 Birmingham Steel Corp. 2,373,638
-------------
TELECOMMUNICATIONS -- 1.8%
6,500 Advanced Fibre Communications 259,188
225,000 Aspect Telecommunications Corp. * 3,993,750
125,000 Omnipoint Corp. 968,750
200,000 Periphonics Corp. 2,750,000
-------------
7,971,688
-------------
TELEMARKETING -- 0.2%
85,000 Sitel Corp. * 839,375
-------------
TEXTILE MILL PRODUCTS -- 0.4%
45,000 St. John Knits, Inc. 1,726,875
-------------
UTILITIES -- 2.0%
170,000 Sierra Pacific Resources 4,823,750
190,000 TNP Enterprises, Inc. 3,990,000
-------------
8,813,750
-------------
TOTAL COMMON STOCK (COST $354,208,219) 365,405,026
-------------
CONVERTIBLE PREFERRED STOCK -- 0.3%
--------------------------------------------------------
BROADCASTING -- 0.3%
25,000 American Radio Systems, 7.00% # 1,190,625
(Cost $1,250,000) -------------
</TABLE>
See notes to financial statements.
21
<PAGE> 115
VISTA SMALL CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
<S> <C> <C>
CONVERTIBLE CORPORATE NOTES & BONDS -- 0.1%
--------------------------------------------------------
COMPUTER SOFTWARE -- 0.0%
$ 250,000 Spectrum Holobyte, Inc., 6.500%, 09/15/02 $ 189,375
-------------
HEALTH CARE/HEALTH CARE SERVICES -- 0.1%
250,000 Assisted Living Concepts, 7.000%, 08/15/05 379,162
-------------
TOTAL CONVERTIBLE CORPORATE NOTES & BONDS 568,537
(COST $500,000)
- ------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS 367,164,188
(COST $355,958,219)
- ------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 19.2%
------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 0.1%
--------------------------------------------------------
U.S. Treasury Bills,
55,000 5.021%, 05/01/97 55,000
20,000 4.980%, 05/08/97 19,981
65,000 5.040%, 06/05/97 64,681
400,000 5.110%, 07/03/97 396,423
60,000 5.130%, 07/17/97 59,342
70,000 5.160%, 07/24/97 69,157
-------------
(COST $664,584) 664,584
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 4.5%
--------------------------------------------------------
Federal Farm Credit Bank, Discount Notes
5,000,000 5.320%, 05/22/97 t 4,984,483
5,000,000 5.330%, 05/22/97 t 4,984,454
5,000,000 5.380%, 06/18/97 t 4,964,134
5,000,000 5.360%, 05/30/97 4,978,411
-------------
(COST 19,911,482) 19,911,482
-------------
COMMERCIAL PAPER -- 6.7%
--------------------------------------------------------
5,000,000 AAA Funding Corp., # 5.550%, 05/07/97 t 4,995,375
5,000,000 Cargill Inc., 5.460%, 05/02/97 t 4,999,242
5,000,000 Daimier-Benz North America Corp. (Germany), 4,994,672
5.480%, 05/08/97 t
5,000,000 Ford Motor Credit Corp., 5.530%, 05/01/97 5,000,000
5,000,000 Lucent Technologies, Inc., 5.500%, 05/23/97 t 4,983,194
5,000,000 Merrill Lynch & Co., Inc., 5.580%, 05/01/97 5,000,000
-------------
(COST $29,972,483) 29,972,483
-------------
</TABLE>
See notes to financial statements.
22
<PAGE> 116
VISTA SMALL CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 7.9%
--------------------------------------------------------
$ 35,219,000 Key Bank, 5.688%, 05/01/97 (Cost $35,219,000) $ 35,219,000
- ------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS 85,767,549
(COST $85,767,549)
====================================================================================
TOTAL INVESTMENTS -- 101.3% $ 452,931,737
(COST $441,725,768)
- ------------------------------------------------------------------------------------
</TABLE>
PURCHASED INDEX FUTURES OUTSTANDING
<TABLE>
<CAPTION>
Number Original Nominal
Expiration of Nominal Value at Unrealized
Description Date Contracts Value 4/30/97 Appreciation
- ---------------------- ------- --------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Russell 2000.......... June 97 150 $24,972,426 $25,867,500 $895,074
</TABLE>
See notes to financial statements.
23
<PAGE> 117
VISTA EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- 86.6%
------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 64.6%
-----------------------------------------------------------
AEROSPACE -- 3.9%
10,000 Doncasters PLC, ADR (United Kingdom) * $ 225,000
7,500 Precision Castparts Corp. 401,250
7,200 Sundstrand Corp. 351,000
4,500 United Technologies, Corp. 340,313
------------
1,317,563
------------
AUTOMOTIVE -- 1.3%
4,500 Chrysler Corp. 135,000
9,000 Lear Corp. * 321,750
------------
456,750
------------
BANKING -- 5.2%
700 Aspen Bancshares, Inc. 14,525
6,400 Bank of New York Company, Inc. 252,800
3,000 BankAmerica Corp. 350,625
3,000 NationsBank Corp. 181,125
10,000 Southwest Bancorp of Texas * 207,500
3,000 Washington Mutual Savings Bank 148,125
1,200 Wells Fargo & Co. 320,100
2,500 Zions Bancorporation 316,250
------------
1,791,050
------------
BROADCASTING -- 0.7%
13,500 Tele-Communications, Inc., Liberty Media Group, Class A 253,969
* ------------
BUSINESS SERVICES -- 1.2%
13,450 ServiceMaster L.P. 415,269
------------
CHEMICALS -- 0.7%
2,200 duPont (EI) deNemours 233,475
------------
COMPUTER SOFTWARE -- 1.1%
15,000 American Management Systems, Inc. * 371,250
------------
COMPUTERS/COMPUTER HARDWARE -- 1.7%
1,100 International Business Machines Corp. 176,825
4,500 Texas Instruments 401,625
------------
578,450
------------
</TABLE>
See notes to financial statements.
24
<PAGE> 118
VISTA EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER PRODUCTS -- 2.6%
5,700 Fruit of the Loom, Inc., Class A * $ 205,200
11,550 Philip Morris Companies, Inc. 454,781
8,000 RJR Nabisco Holdings Corp. 238,000
------------
897,981
------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 1.9%
1,600 Intel Corp. 245,000
11,000 Micron Technology, Inc. 387,750
------------
632,750
------------
ENTERTAINMENT/LEISURE -- 1.5%
14,000 Carnival Corp., Class A 516,250
------------
FINANCIAL SERVICES -- 5.3%
7,700 American Express Co. 507,237
22,700 Federal Home Loan Mortgage Corp. 723,562
6,000 Federal National Mortgage Association 246,750
10,000 Lehman Brothers Holding, Inc. 338,750
------------
1,816,299
------------
FOOD/BEVERAGE PRODUCTS -- 0.6%
1,000 Unilever NV, ADR (Netherlands) 196,250
------------
HEALTH CARE/HEALTH CARE SERVICES -- 2.1%
11,500 Columbia/HCA Healthcare Corp. 402,500
6,000 Tenet Healthcare Corp. * 156,000
4,765 US Surgical Corp. 163,201
------------
721,701
------------
HOTELS/OTHER LODGING -- 0.7%
12,879 Homestead Village, Inc. 222,163
------------
INSURANCE -- 4.1%
3,600 Allstate Corp. 235,800
2,700 American International Group 346,950
2,600 Loews Corp. 238,875
10,700 Nationwide Financial Services, Inc., Class A 283,550
27,000 Reliance Group Holdings, Inc. 300,375
------------
1,405,550
------------
MANUFACTURING -- 0.9%
8,000 Johnson Controls 307,000
------------
</TABLE>
See notes to financial statements.
25
<PAGE> 119
VISTA EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
<S> <C> <C>
METALS/MINING -- 1.2%
5,700 Aluminum Co. of America (ALCOA) $ 398,287
------------
OIL & GAS -- 7.4%
2,900 British Petroleum PLC, ADR (United Kingdom) 399,113
7,500 Elf Aquitaine SA, ADR (France) 364,687
9,500 Enterprise Oil PLC (ADR) (United Kingdom) 282,625
6,000 Exxon Corp. 339,750
1,700 Mobil Corp. 221,000
4,400 PanEnergy Corp. 194,700
2,300 Royal Dutch Petroleum Co. 414,575
7,050 Williams Companies, Inc. 309,319
------------
2,525,769
------------
PHARMACEUTICALS -- 4.3%
5,300 American Home Products Corp. 351,125
6,000 Bristol-Myers Squibb Co. 393,000
6,000 Schering-Plough Corp. 480,000
3,000 SmithKline Beecham PLC, ADR (United Kingdom) 241,875
------------
1,466,000
------------
REAL ESTATE INVESTMENT TRUSTS -- 7.7%
5,000 Arden Realty Group, Inc. 124,375
11,200 Beacon Properties Corp. 345,800
9,378 Chateau Properties, Inc. 245,000
9,000 Duke Realty Investments, Inc. 330,750
11,500 Equity Residential Properties Trust 503,125
8,000 FelCor Suite Hotels, Inc. 287,000
10,000 Kilroy Realty Corp. 235,000
15,000 Security Capital Industrial Trust 301,875
7,000 Storage USA, Inc. 263,375
------------
2,636,300
------------
SHIPPING/TRANSPORTATION -- 1.2%
1,500 Burlington Northern, Inc. 118,125
8,000 Canadian Natural Railway Co. (Canada) 308,000
------------
426,125
------------
STEEL -- 0.3%
7,500 Birmingham Steel Corp. 109,688
------------
</TABLE>
See notes to financial statements.
26
<PAGE> 120
VISTA EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS -- 3.3%
9,000 BellSouth Corp. $ 400,500
5,700 GTE Corp. 261,487
3,200 Sprint Corp. 140,400
2,700 Telecomunicacoes Brasileiros SA, ADR (Brazil) 309,825
------------
1,112,212
------------
UTILITIES -- 3.7%
15,000 Centrais Electricas Brasileiras SA-Electrobras, ADR 350,480
(Brazil)
5,000 CESP-Companhia Energetica de Sao Paulo, ADR (Brazil) * 79,686
3,500 CINergy Corp. 116,375
6,000 Companhia Energetica de Minas Gerais (CEMIG), ADR 273,050
(Brazil)
6,000 DPL, Inc. 141,750
3,400 FPL Group Inc. 151,725
5,600 Sierra Pacific Resources 158,900
------------
1,271,966
------------
TOTAL COMMON STOCK (COST $18,445,053) 22,080,067
------------
CONVERTIBLE PREFERRED STOCK -- 7.0%
-----------------------------------------------------------
AEROSPACE -- 0.5%
3,500 Loral Space & Communications, 6.00%, 11/01/06 # 167,524
------------
AIRLINES -- 1.3%
6,000 Continental Air Finance Trust, 8.50%, 12/01/20 434,292
------------
FINANCIAL SERVICES -- 4.5%
6,000 Calenergy Capital Trust, 6.25%, 03/10/16 424,500
3,500 First USA, Inc. 6.25%, 05/20/98 283,500
3,500 Golden Books Financial Trust, 8.75%, 08/20/16 # 178,500
6,500 K-Mart Financing Inc., 7.75%, 06/15/16 374,563
6,000 Nuevo Financing Inc., 5.75%, Ser. A 273,750
------------
1,534,813
------------
INSURANCE -- 0.7%
4,000 American Bankers Insurance Group, 6.25%, Ser. B 251,500
------------
TOTAL CONVERTIBLE PREFERRED STOCK (COST $2,271,028) 2,388,129
------------
WARRANTS -- 0.0%
-----------------------------------------------------------
HOTELS/OTHER LODGING -- 0.0%
590 Homestead Village, Inc., Expire 10/29/97 (COST $4,872) 4,646
------------
</TABLE>
See notes to financial statements.
27
<PAGE> 121
VISTA EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
<S> <C> <C>
CONVERTIBLE CORPORATE NOTES & BONDS -- 5.0%
-----------------------------------------------------------
COMPUTERS/COMPUTER HARDWARE -- 1.5%
$ 450,000 Solectron Corp. 6.00%, 03/01/06 # $ 496,931
------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 0.7%
200,000 Xilinx Inc. 5.25%, 11/01/02 # 228,688
------------
ENVIRONMENTAL SERVICES -- 0.7%
250,000 USA Waste Services Inc., 4.00%, 02/01/02 246,210
------------
FINANCIAL SERVICES -- 0.7%
250,000 American Residential Services 7.25%, 04/15/04 # 245,000
------------
HEALTH CARE/HEALTH CARE SERVICES -- 0.4%
100,000 Assisted Living Concepts, 7.00%, 08/15/05 151,665
------------
RETAILING -- 1.0%
300,000 Federated Department Stores, 5.00%, 10/01/03 346,500
------------
TOTAL CONVERTIBLE CORPORATE NOTES AND BONDS 1,714,994
(COST $1,634,632) ------------
U.S. TREASURY OBLIGATIONS -- 10.0%
-----------------------------------------------------------
3,000,000 U.S. Treasury Bond, 7.25%, 08/15/22 3,066,090
350,000 U.S. Treasury Note, 6.88%, 05/15/06 352,954
(Cost $3,349,794)
------------
3,419,044
------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS 29,606,880
(COST $25,705,379)
- ------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 16.8%
- ------------------------------------------------------------------------------------
TIME DEPOSIT -- 16.8%
-----------------------------------------------------------
5,727,000 Key Bank, 5.69%, 05/01/97 (Cost $5,727,000) 5,727,000
- ------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 103.4% $ 35,333,880
(COST $31,432,379)
- ------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
28
<PAGE> 122
VISTA LARGE CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- 90.7%
------------------------------------------------------------------------------------
COMMON STOCK -- 90.7%
--------------------------------------------------------
AEROSPACE -- 1.2%
8,000 Allied-Signal, Inc. $ 578,000
10,000 United Technologies, Corp. 756,250
-------------
1,334,250
-------------
AGRICULTURAL PRODUCTION/SERVICES -- 1.9%
21,300 Case Corp. 1,179,487
20,400 Deere & Co. 938,400
-------------
2,117,887
-------------
AIRLINES -- 0.9%
10,500 AMR Corp. * 977,813
-------------
AUTOMOTIVE -- 0.9%
17,600 General Motors 1,018,600
-------------
BANKING -- 6.7%
13,000 BankBoston Corp. 945,750
9,000 Citicorp 1,013,625
9,500 Comerica, Inc. 555,750
15,000 First Union Corp. 1,260,000
7,500 Mellon Bank Corp. 623,438
23,000 NationsBank Corp. 1,388,625
15,200 Norwest Corp. 758,100
17,000 Washington Mutual Savings Bank 839,375
-------------
7,384,663
-------------
BIOTECHNOLOGY -- 0.8%
15,000 Amgen, Inc. * 883,125
-------------
BROADCASTING -- 0.5%
34,000 Comast Corp., Special Class A 535,500
-------------
CHEMICALS -- 3.0%
15,500 Dow Chemical Co. 1,315,562
11,500 duPont (EI) deNemours 1,220,438
16,500 Union Carbide Corp. 822,937
-------------
3,358,937
-------------
</TABLE>
See notes to financial statements.
29
<PAGE> 123
VISTA LARGE CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
COMPUTER SOFTWARE -- 3.0%
22,700 Cisco Systems, Inc. $ 1,174,725
27,075 Computer Associates International 1,407,900
6,000 Microsoft Corp. * 729,000
-------------
3,311,625
-------------
COMPUTERS/COMPUTER HARDWARE -- 5.8%
10,000 Compaq Computer Corp. * 853,750
42,000 EMC Corp. * 1,527,750
6,000 International Business Machines Corp. 964,500
22,000 Seagate Technology, Inc. * 1,009,250
36,000 Sun Microsystems, Inc. * 1,037,250
11,000 Texas Instruments 981,750
-------------
6,374,250
-------------
CONSTRUCTION MACHINERY -- 1.3%
16,300 Caterpillar Tractor, Inc. 1,450,700
-------------
CONSUMER PRODUCTS -- 5.7%
22,500 Avon Products, Inc. 1,386,563
10,000 Colgate-Palmolive Co. 1,110,000
42,000 Philip Morris Companies, Inc. 1,653,750
8,700 Procter & Gamble Co. 1,094,025
12,800 Ralston Purina Group 1,054,400
-------------
6,298,738
-------------
DIVERSIFIED -- 0.6%
12,600 Dover Corp. 667,800
-------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 2.2%
6,000 General Electric Co. 665,250
11,500 Intel Corp. 1,760,937
-------------
2,426,187
-------------
ENTERTAINMENT/LEISURE -- 2.3%
47,000 Carnival Corp., Class A 1,733,125
18,500 Time Warner, Inc. 832,500
-------------
2,565,625
-------------
</TABLE>
See notes to financial statements.
30
<PAGE> 124
VISTA LARGE CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
FINANCIAL SERVICES -- 2.8%
10,000 American Express Co. $ 658,750
30,000 Federal Home Loan Mortgage Corp. 956,250
15,200 Federal National Mortgage Assoc. 625,100
30,000 Green Tree Financial Corp. 888,750
-------------
3,128,850
-------------
FOOD/BEVERAGE PRODUCTS -- 3.8%
15,300 Coca-Cola Enterprises, Inc. 923,738
22,800 ConAgra, Inc. 1,313,850
27,000 PepsiCo., Inc. 941,625
5,000 Unilever NV, ADR (Netherlands) 981,250
-------------
4,160,463
-------------
HEALTH CARE/HEALTH CARE SERVICES -- 3.2%
40,000 Columbia/HCA Healthcare Corp. 1,400,000
70,000 HEALTHSOUTH Corp. * 1,382,500
27,000 Tenet Healthcare Corp. * 702,000
-------------
3,484,500
-------------
INSURANCE -- 3.5%
7,000 Aetna Inc. 637,875
26,000 Allstate Corp. 1,703,000
7,400 American International Group 950,900
8,000 Progressive Corp. 609,000
-------------
3,900,775
-------------
MANUFACTURING -- 3.9%
15,000 Ingersoll-Rand Co. 736,875
33,000 Johnson Controls 1,266,375
15,000 Parker Hannifin Corp. 746,250
25,000 Tyco International Ltd. 1,525,000
-------------
4,274,500
-------------
MEDIA/ADVERTISING -- 0.5%
11,000 Omnicom Group, Inc. 583,000
-------------
METALS/MINING -- 2.5%
22,000 Aluminum Co. of America (ALCOA) 1,537,250
22,700 Inco, Ltd. 726,400
5,800 Phelps Dodge Corp. 445,150
-------------
2,708,800
-------------
</TABLE>
See notes to financial statements.
31
<PAGE> 125
VISTA LARGE CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
OFFICE/BUSINESS EQUIPMENT -- 0.6%
10,000 Xerox Corp. $ 615,000
-------------
OIL & GAS -- 9.6%
12,000 Amoco Corp. 1,003,500
8,100 British Petroleum PLC, ADR (United Kingdom) 1,114,762
22,000 Coastal Corp. 1,045,000
15,500 Halliburton Company 1,094,687
12,100 Mobil Corp. 1,573,000
12,000 PanEnergy Corp. 531,000
13,000 Phillips Petroleum Co. 511,875
15,000 Texaco, Inc. 1,582,500
20,000 USX-Marathon Group 552,500
36,850 Williams Companies, Inc. 1,616,794
-------------
10,625,618
-------------
PAPER/FOREST PRODUCTS -- 0.8%
14,100 Willamette Industries, Inc. 898,875
-------------
PHARMACEUTICALS -- 6.0%
16,000 American Home Products Corp. 1,060,000
22,000 Bristol-Myers Squibb Co. 1,441,000
24,000 Johnson & Johnson 1,470,000
25,000 Pharmacia & Upjohn, Inc. 740,625
23,200 SmithKline Beecham PLC, ADR (United Kingdom) 1,870,500
-------------
6,582,125
-------------
PHOTOGRAPHIC EQUIPMENT -- 1.4%
18,000 Eastman Kodak Co. 1,503,000
-------------
PRINTING & PUBLISHING -- 1.1%
29,000 New York Times Company, Class A 1,254,250
-------------
RETAILING -- 4.5%
14,400 American Stores Co. 655,200
19,000 Dayton-Hudson Corp. 855,000
36,000 Federated Department Stores * 1,224,000
22,000 Gap, Inc. 701,250
58,000 Kroger Co. * 1,595,000
-------------
5,030,450
-------------
</TABLE>
See notes to financial statements.
32
<PAGE> 126
VISTA LARGE CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
SHIPPING/TRANSPORTATION -- 0.7%
10,500 Burlington Northern, Inc. $ 826,875
-------------
TELECOMMUNICATIONS -- 5.3%
35,000 BellSouth Corp. 1,557,500
21,500 Frontier Corp. 341,312
19,400 GTE Corp. 889,975
11,639 Lucent Technologies, Inc. 688,156
14,500 Sprint Corp. 636,188
20,000 Telefonaktiebolaget LM Ericsson, Sp, ADR (Sweden) 672,500
44,000 WorldCom, Inc. 1,056,000
-------------
5,841,631
-------------
TEXTILES -- 0.6%
15,000 Liz Claiborne, Inc. 678,750
-------------
UTILITIES -- 3.1%
12,000 Carolina Power & Light Co. 408,000
27,000 CMS Energy Corp. 857,250
28,800 FPL Group Inc. 1,285,200
30,000 Pinnacle West Capital Corp. 855,000
-------------
3,405,450
------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS 100,208,612
(COST $81,243,799)
------------------------------------------------------------------------------------
Principal
Amount
- ------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 10.4%
------------------------------------------------------------------------------------
TIME DEPOSIT -- 10.4%
--------------------------------------------------------
$ 11,503,000 Key Bank, 5.688%, 05/01/97 (Cost $11,503,000) 11,503,000
------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 101.1% $ 111,711,612
(COST $92,746,799)
------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
33
<PAGE> 127
VISTA AMERICAN VALUE FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- 90.2
------------------------------------------------------------------------------------
COMMON STOCK -- 90.2%
--------------------------------------------------------------
AEROSPACE -- 2.2%
5,000 Raytheon Co. $ 218,125
-----------
AGRICULTURAL PRODUCTION/SERVICES -- 2.2%
12,000 Archer-Daniels-Midland Co. 220,500
-----------
BANKING -- 7.1%
6,270 Banc One Corp. 265,691
1,400 BankAmerica Corp. 163,625
4,000 H. F. Ahmanson & Co. 152,500
1,200 J. P. Morgan & Company, Inc. 122,250
-----------
704,066
-----------
COMPUTERS/COMPUTER HARDWARE -- 2.7%
7,000 Stratus Computer, Inc. * 272,125
-----------
CONSUMER PRODUCTS -- 1.9%
4,000 Whirlpool Corp. 187,000
-----------
DIVERSIFIED -- 4.8%
3,400 Cognizant Corp. 110,925
3,000 Fluor Corp. 165,000
5,000 Tenneco Inc. 199,375
-----------
475,300
-----------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 8.6%
10,000 EG&G, Inc. 188,750
4,000 Motorola, Inc. 229,000
4,000 Tecumseh Products Co., Class A 216,000
8,000 Watkins-Johnson Co. 220,000
-----------
853,750
-----------
ENVIRONMENTAL SERVICES -- 2.1%
7,000 WMX Technologies, Inc. 205,625
-----------
FINANCIAL SERVICES -- 2.7%
6,400 Federal National Mortgage Assoc. 263,200
-----------
</TABLE>
See notes to financial statements.
34
<PAGE> 128
VISTA AMERICAN VALUE FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
HEALTH CARE/HEALTH CARE SERVICES -- 3.4%
4,400 Bard (C.R.), Inc. $ 139,700
4,200 Baxter International Inc. 201,075
-----------
340,775
-----------
INSURANCE -- 6.6%
7,000 Allstate Corp. 458,500
4,800 Safeco Corp. 192,000
-----------
650,500
-----------
MANUFACTURING -- 3.3%
6,500 ITT Industries, Inc. 164,125
8,200 Zero Corp. 159,900
-----------
324,025
-----------
METAL FABRICATORS -- 1.5%
4,800 Reliance Steel & Aluminum Co. 153,000
-----------
METALS/MINING -- 1.7%
7,400 Cyprus Amax Minerals Co. 165,575
-----------
OIL & GAS -- 8.0%
1,200 Atlantic Richfield Co. (ARCO) 163,350
3,000 Burlington Resources, Inc. 127,125
4,000 El Paso Natural Gas Co. 232,500
10,000 Union Pacific Resources Group, Inc. 271,250
-----------
794,225
-----------
PAPER/FOREST PRODUCTS -- 8.9%
11,500 Longview Fibre Co. 185,438
15,000 Louisiana-Pacific Corp. 279,375
5,000 Potlatch Corp. 205,000
3,000 St. Joe Paper Co. 217,875
-----------
887,688
-----------
PHARMACEUTICALS -- 2.7%
3,000 Merck & Company, Inc. 271,500
-----------
PRINTING & PUBLISHING -- 3.2%
6,000 Readers Digest Association, Inc., Class A 138,000
4,000 Tribune Co. 175,500
-----------
313,500
-----------
</TABLE>
See notes to financial statements.
35
<PAGE> 129
VISTA AMERICAN VALUE FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUST -- 2.3%
9,674 BRE Properties, Inc., Class A $ 227,339
-----------
RETAILING -- 6.8%
5,000 Dayton-Hudson Corp. 225,000
4,600 Dillard Department Stores, Inc., Class A 142,025
10,000 SUPERVALU, Inc. 306,250
-----------
673,275
-----------
SHIPPING/TRANSPORTATION -- 1.8%
2,000 Norfolk Southern Corp. 179,750
-----------
TELECOMMUNICATIONS -- 2.0%
6,000 AT&T Corp. 201,000
-----------
TIRE & RUBBER -- 2.1%
4,000 Goodyear Tire & Rubber, Inc. 210,500
-----------
UTILITIES -- 1.6%
8,000 Central & South West Corp. 161,000
-----------
- ------------------------------------------------------------------------------------
TOTAL COMMON STOCK 8,953,343
(COST $7,179,955)
- ------------------------------------------------------------------------------------
Principal
Amount
- ------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 9.8%
------------------------------------------------------------------------------------
COMMERCIAL PAPER -- 4.3%
--------------------------------------------------------------
FINANCIAL SERVICES -- 4.3%
$ 426,500 Ford Motor Credit Corp., 5.51%, 05/05/97 (Cost $426,239) 426,239
-----------
</TABLE>
See notes to financial statements.
36
<PAGE> 130
VISTA AMERICAN VALUE FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 5.5%
--------------------------------------------------------------
U.S. Treasury Bills,
$ 98,000 4.95%, 05/15/97 97,811
207,000 4.96%, 05/15/97 206,601
238,000 4.97%, 05/15/97 237,540
-----------
(COST $541,952) 541,952
- ------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS 968,191
(COST $968,191)
====================================================================================
TOTAL INVESTMENTS -- 100.0% $ 9,921,534
(COST $8,148,146)
- ------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
37
<PAGE> 131
VISTA BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- 89.9%
------------------------------------------------------------------------------------
COMMON STOCK -- 44.2%
-----------------------------------------------------------
AEROSPACE -- 1.0%
4,800 Allied-Signal, Inc. $ 346,800
5,200 Precision Castparts Corp. 278,200
3,700 Sundstrand Corp. 180,375
------------
805,375
------------
AGRICULTURAL PRODUCTION/SERVICES -- 0.5%
4,000 AGCO Corp. 103,500
5,500 Case Corp. 304,562
------------
408,062
------------
AIRLINES -- 0.8%
3,000 AMR Corp. * 279,375
10,000 Continental Airlines, Inc., Class B * 317,500
------------
596,875
------------
AUTOMOTIVE -- 0.5%
4,500 General Motors 260,438
4,400 Lear Corp. * 157,300
------------
417,738
------------
BANKING -- 3.0%
6,000 BankBoston Corp. 436,500
6,500 CitFed Bancorp., Inc. 214,500
2,500 Citicorp 281,562
3,400 First Union Corp. 285,600
8,000 NationsBank Corp. 483,000
4,200 Norwest Corp. 209,475
10,000 Southwest Bancorp of Texas 207,500
1,700 Zions Bancorporation 215,050
------------
2,333,187
------------
BROADCASTING -- 0.2%
8,250 Tele-Communications, Inc., Liberty Media Group, Class A 155,203
------------
CHEMICALS -- 1.5%
7,000 Cabot Corp. 154,000
3,400 Dow Chemical Co. 288,575
4,900 duPont (EI) deNemours 520,013
5,100 Union Carbide Corp. 254,362
------------
1,216,950
------------
</TABLE>
See notes to financial statements.
38
<PAGE> 132
VISTA BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
COMPUTER SOFTWARE -- 1.6%
7,000 Cisco Systems, Inc. $ 362,250
8,825 Computer Associates International 458,900
2,900 Microsoft Corp. * 352,350
4,000 Reynolds & Reynolds, Inc., Class A 83,000
------------
1,256,500
------------
COMPUTERS/COMPUTER HARDWARE -- 1.9%
3,400 Compaq Computer Corp. * 290,275
10,500 EMC Corp. * 381,938
2,000 International Business Machines Corp. 321,500
5,800 Sun Microsystems, Inc. * 167,112
3,600 Texas Instruments 321,300
------------
1,482,125
------------
CONSTRUCTION MACHINERY -- 0.3%
2,300 Caterpillar Tractor, Inc. 204,700
------------
CONSUMER PRODUCTS -- 3.1%
7,000 Avon Products, Inc. 431,375
7,000 Black & Decker Corp. 234,500
3,300 Colgate-Palmolive Co. 366,300
7,400 First Brands Corp. 187,775
13,500 Philip Morris Companies, Inc. 531,563
3,000 Procter & Gamble Co. 377,250
3,500 Ralston Purina Group 288,312
------------
2,417,075
------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 1.0%
5,500 Atmel Corp. * 136,813
3,100 Intel Corp. 474,688
2,800 Teleflex, Inc. 161,700
------------
773,201
------------
ENTERTAINMENT/LEISURE -- 0.9%
16,200 Carnival Corp., Class A 597,375
3,100 Time Warner, Inc. 139,500
------------
736,875
------------
</TABLE>
See notes to financial statements.
39
<PAGE> 133
VISTA BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
FINANCIAL SERVICES -- 1.9%
12,800 Countrywide Credit Industries, Inc. $ 347,200
11,600 Federal Home Loan Mortgage Corp. 369,750
5,000 Federal National Mortgage Assoc. 205,625
11,000 Green Tree Financial Corp. 325,875
5,200 The PMI Group, Inc. 265,850
------------
1,514,300
------------
FOOD/BEVERAGE PRODUCTS -- 2.3%
7,500 Coca-Cola Enterprises, Inc. 452,813
6,300 ConAgra, Inc. 363,038
9,400 PepsiCo., Inc. 327,825
7,000 Sara Lee Corp. 294,000
1,700 Unilever NV, ADR (Netherlands) 333,625
------------
1,771,301
------------
HEALTH CARE/HEALTH CARE SERVICES -- 2.1%
9,000 Alternative Living Services, Inc. * 148,500
10,000 Columbia/HCA Healthcare Corp. 350,000
18,000 HEALTHSOUTH Corp. * 355,500
4,000 PhyCor, Inc. * 106,500
8,000 Tenet Healthcare Corp. * 208,000
7,700 Universal Health Services, Inc., Class B * 291,638
4,288 US Surgical Corp. 146,864
------------
1,607,002
------------
INSURANCE -- 1.8%
7,200 Allstate Corp. 471,600
4,550 American Bankers Insurance Group, Inc. 240,581
2,650 American International Group 340,525
15,000 Nationwide Financial Services, Inc., Class A * 397,500
------------
1,450,206
------------
MANUFACTURING -- 2.6%
5,000 Ingersoll-Rand Co. 245,625
12,000 Johnson Controls 460,500
5,800 Kennametal Inc. 208,800
7,000 Parker Hannifin Corp. 348,250
5,600 Pentair, Inc. 167,300
9,400 Tyco International Ltd. 573,400
------------
2,003,875
------------
</TABLE>
See notes to financial statements.
40
<PAGE> 134
VISTA BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
METALS/MINING -- 0.9%
8,000 Aluminum Co. of America (ALCOA) $ 559,000
4,000 Inco, Ltd. 128,000
------------
687,000
------------
OFFICE/BUSINESS EQUIPMENT -- 0.4%
4,800 Xerox Corp. 295,200
------------
OIL & GAS -- 4.3%
3,700 Amoco Corp. 309,412
6,700 Coastal Corp. 318,250
5,200 Halliburton Company 367,250
3,800 Mobil Corp. 494,000
6,000 PanEnergy Corp. 265,500
5,300 Phillips Petroleum Co. 208,688
1,400 Royal Dutch Petroleum Co. 252,350
4,300 Texaco, Inc. 453,650
5,500 Tidewater, Inc. 220,688
10,650 Williams Companies, Inc. 467,269
------------
3,357,057
------------
PAPER/FOREST PRODUCTS -- 0.4%
5,100 Willamette Industries, Inc. 325,125
------------
PHARMACEUTICALS -- 3.0%
5,500 American Home Products Corp. 364,375
5,800 Bristol-Myers Squibb Co. 379,900
2,500 Eli Lilly & Co. 219,687
8,300 Johnson & Johnson 508,375
4,700 Schering-Plough Corp. 376,000
6,000 SmithKline Beecham PLC, ADR (United Kingdom) 483,750
------------
2,332,087
------------
PHOTOGRAPHIC EQUIPMENT -- 0.5%
4,300 Eastman Kodak Co. 359,050
------------
PRINTING & PUBLISHING -- 0.5%
9,000 New York Times Company, Class A 389,250
------------
</TABLE>
See notes to financial statements.
41
<PAGE> 135
VISTA BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUST -- 1.2%
8,000 Arden Realty Group, Inc. $ 199,000
4,000 Bay Apartment Communities, Inc. 134,000
4,600 Beacon Properties Corp. 142,025
15,000 Kilroy Realty Corp. 352,500
4,000 Spieker Properties, Inc. 139,500
------------
967,025
------------
RESTAURANTS/FOOD SERVICES -- 0.2%
7,900 Wendy's International, Inc. 162,937
------------
RETAILING -- 1.6%
3,600 American Stores Co. 163,800
8,300 Federated Department Stores * 282,200
12,300 Gap, Inc. 392,063
14,800 Kroger Co. * 407,000
------------
1,245,063
------------
SHIPPING/TRANSPORTATION -- 0.3%
2,700 Burlington Northern, Inc. 212,625
------------
TELECOMMUNICATIONS -- 2.4%
10,700 BellSouth Corp. 476,150
10,000 Compania Anonima Nacional Telefonos de Venezuela 300,000
(CANTV), ADR (Venezuela)
6,100 GTE Corp. 279,838
3,504 Lucent Technologies, Inc. 207,174
8,884 Sprint Corp. 389,785
6,000 Telefonaktiebolaget LM Ericsson, Sp, ADR (Sweden) 201,750
------------
1,854,697
------------
TEXTILES -- 0.2%
4,300 Liz Claiborne, Inc. 194,575
------------
UTILITIES -- 1.3%
4,600 CMS Energy Corp. 146,050
8,400 FPL Group Inc. 374,850
10,000 Pinnacle West Capital Corp. 285,000
8,000 Sierra Pacific Resources 227,000
------------
1,032,900
------------
TOTAL COMMON STOCK (COST $27,277,677) 34,565,141
------------
</TABLE>
See notes to financial statements.
42
<PAGE> 136
VISTA BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK -- 2.4%
-----------------------------------------------------------
AEROSPACE -- 0.2%
3,500 Loral Space & Communications, 6.00%, 11/01/2006 Ser. # $ 167,524
------------
CONSUMER PRODUCTS -- 0.3%
20,000 RJR Nabisco Holdings Corp. $0.6012, Ser. C 117,500
9,000 Westinghouse Electric, $1.30 # 135,531
------------
253,031
------------
FINANCIAL SERVICES -- 1.2%
2,000 American General Delaware L.L.C., Ser. A, 6.00% 116,750
5,000 Nuevo Financing Inc., 5.75%, Ser. A 228,125
5,000 St. Paul Capital Corp., LLC, 6.00%, 05/31/25 307,500
7,000 Sunamerica Inc., $3.188, 10/31/99 295,750
------------
948,125
------------
INSURANCE -- 0.2%
2,000 American Bankers Insurance Group, Ser. B, $3.125 125,750
------------
OIL & GAS -- 0.2%
6,500 Enron Corp., 6.25% Exchange Notes, 12/13/98, ACES 130,000
------------
UTILITIES -- 0.3%
4,000 Calenergy Capital Trust II, 6.25%, 02/25/12 # 205,500
------------
TOTAL CONVERTIBLE PREFERRED STOCK (COST $1,745,250) 1,829,930
------------
Principal
Amount
(USD)
CORPORATE NOTES & BONDS -- 10.3%
-----------------------------------------------------------
AEROSPACE -- 0.6%
$ 500,000 Lockheed Martin Corp., 7.450%, 06/15/2004 507,410
------------
BANKING -- 1.2%
1,000,000 Bankers Trust Capital Trust A, 7.900%, 01/15/2027 937,500
------------
COMPUTERS/COMPUTER HARDWARE -- 1.3%
1,100,000 International Business Machines Corp., 7.125%, 1,010,625
12/01/2096 ------------
</TABLE>
See notes to financial statements.
43
<PAGE> 137
VISTA BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<C> <S> <C>
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
FINANCIAL SERVICES -- 1.9%
$ 120,000 Corp Andina de Fomento, Yankee (Venezuela), 7.375%, $ 121,438
07/21/2000
400,000 Ford Capital BV, Yankee (Netherlands), 9.000%, 08/15/98 412,600
1,000,000 Lehman Brothers Inc., 7.375%, 01/15/2007 982,680
------------
1,516,718
------------
GOVERNMENT ISSUE -- 0.6%
500,000 Republic of Colombia, Global Bond, (Columbia) 8.375%, 454,375
02/15/2027 ------------
OIL & GAS -- 0.9%
750,000 Petroliam Nasional Bhd., (Malaysia) 7.625%, 737,317
10/15/2026 # ------------
TELECOMMUNICATIONS -- 1.3%
600,000 360 Communications Corp., 7.500%, 03/01/2006 590,580
400,000 Bellsouth Telecommunications, 7.875%, 08/01/2032 394,436
------------
985,016
------------
UTILITIES -- 2.5%
1,000,000 Chilgener SA, Yankee (Chile), 6.500%, 01/15/2006 934,630
500,000 Enersis SA, Yankee (Caymon Islands), 6.900%, 12/01/2006 474,555
500,000 Ras Laffan Liquefied Natural Gas, (Qatar) 8.294%, 506,913
03/15/2014 #
------------
1,916,098
------------
TOTAL CORPORATE NOTES & BONDS (COST $8,306,687) 8,065,059
------------
CONVERTIBLE CORPORATE NOTES & BONDS -- 1.4%
-----------------------------------------------------------
COMPUTERS/COMPUTER HARDWARE -- 0.4%
100,000 EMC Corp., 3.250%, 03/15/2002 # 103,500
150,000 SCI Systems Inc., 5.000%, 05/11/2006 # 212,813
------------
316,313
------------
ENVIRONMENTAL SERVICES -- 0.3%
250,000 USA Waste Services Inc., 4.000%, 02/01/2002 246,210
------------
FINANCIAL SERVICES -- 0.3%
250,000 American Residential Services, 7.250%, 04/15/2004 # 245,000
------------
</TABLE>
See notes to financial statements.
44
<PAGE> 138
VISTA BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<C> <S> <C>
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
HEALTH CARE/HEALTH CARE SERVICES -- 0.4%
$ 150,000 Assisted Living Concepts, 7.000%, 08/15/2005 # $ 227,497
150,000 Sterling House, 6.750%, 06/30/2006 # 106,687
------------
334,184
------------
TOTAL CONVERTIBLE CORPORATE NOTES & BONDS (COST $1,050,000) 1,141,707
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 11.5%
-----------------------------------------------------------
Federal Home Loan Mortgage Corp.,
2,000,000 8.000%, 04/09/2007 1,995,620
1,192,651 Gold, Pool #G10597, 6.500%, 11/01/2011 1,166,329
706,439 Federal National Mortgage Association, Pool #362451, 714,387
7.500%, 12/01/2007
Government National Mortgage Association,
1,007,101 Pool #420943, 8.000%, 10/15/2026 1,020,627
1,005,982 Pool #432175, 8.000%, 11/15/2026 1,019,492
1,232,940 Pool #780047, 9.000%, 12/15/2017 1,312,859
735,145 Pool #780508, 8.000%, 11/15/2024 750,068
1,000,000 Tennessee Valley Authority, 6.235%, 07/15/2045 987,000
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $9,012,239) 8,966,382
------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 7.4%
-----------------------------------------------------------
383,443 Blackrock Capital Finance L.P., Ser. 1996-C2, Class A, 384,163
Stripe Interest, 7.642%, 11/15/2026 #
Federal Home Loan Mortgage Corp.,
500,000 Ser. 1360, Class PK, 10.000%, 12/15/2020 563,905
1,000,000 Ser. 1759, Class BC, 7.600%, 04/15/2016 1,009,680
1,000,000 Ser. 1865, Class G, 8.000%, 08/15/2024 1,017,502
2,019,544 Ser. 77, Class G, 8.500%, 01/15/2020 2,078,857
741,722 Federal National Mortgage Association, Ser. 1997-17, 740,061
Class A, 7.250%, 03/31/2004 ------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $5,817,590) 5,794,168
------------
COMMERCIAL MORTGAGE BACKED SECURITIES -- 2.3%
-----------------------------------------------------------
750,000 Morgan Stanley Capital I, Ser. 1996-WF1, Class A3, 752,109
7.380%, 08/15/2006 #
1,000,000 Nomura Asset Securities Corp., Ser. 1996-MD5, Class 1,020,937
A1B, 7.120%, 04/13/2036 ------------
TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES (COST 1,773,046
$1,783,092) ------------
</TABLE>
See notes to financial statements.
45
<PAGE> 139
VISTA BALANCED FUND
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<C> <S> <C>
- ------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 10.4%
-----------------------------------------------------------
U.S. Treasury Bonds & Notes,
$ 700,000 8.750%, 08/15/2020 $ 834,421
2,995,000 8.000%, 05/15/2001 3,149,422
500,000 6.785%, 05/15/2006 504,220
2,100,000 7.750%, 11/30/99 2,166,612
1,400,000 8.250%, 07/15/98 1,435,000
------------
(COST $8,163,760) 8,089,675
------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS 70,225,108
(COST $63,156,295)
------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 8.6%
------------------------------------------------------------------------------------
TIME DEPOSIT -- 8.6%
-----------------------------------------------------------
6,749,000 Key Bank, 5.688%, 05/01/97 (Cost $6,749,000) 6,749,000
------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 98.5% $ 76,974,108
(COST $69,905,295)
------------------------------------------------------------------------------------
</TABLE>
# = Security may only be sold to qualified institutional buyers.
* = Non income producing security.
t = All or a portion of this security is pledged to cover financial
futures contracts.
ACES = Automatic Common Exchange Securities.
ADR = American Depository Receipt.
See notes to financial statements.
46
<PAGE> 140
VISTA MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Small
Vista Growth & Vista Capital Cap Vista Equity
Income Growth Equity Income
Fund Fund Fund Fund
--------------- --------------- ------------- ------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value (Note 1).................... $ 2,255,978,972 $ 1,138,265,755 $ 452,931,737 $ 35,333,880
Cash........................................................ -- -- 690,633 82
Receivables:
Investment securities sold................................ -- -- 555,375 --
Variation margin.......................................... -- -- 48,750 --
Interest and dividends.................................... -- -- 172,539 125,129
Fund shares sold.......................................... 2,104,651 1,106,111 222,649 120,183
Other assets................................................ 73,386 142,419 65,754 1,417
-------------- -------------- ------------ -----------
Total assets........................................... 2,258,157,009 1,139,514,285 454,687,437 35,580,691
-------------- -------------- ------------ -----------
LIABILITIES:
Payable for investment securities purchased................. -- -- 6,600,973 1,259,943
Payable for Fund shares redeemed............................ 1,750,720 1,097,636 227,257 28,086
Payable to custodian........................................ -- -- -- --
Dividends payable........................................... 36,525 -- -- --
Accrued liabilities: (Note 2)
Administration fees....................................... 179,399 91,875 55,789 3,888
Distribution fees......................................... 636,608 429,672 79,107 8,963
Investment advisory fees.................................. -- -- 241,751 9,072
Shareholder servicing fees................................ 448,181 226,690 62,371 1,241
Custodian................................................. -- -- 33,029 9,951
Other..................................................... 1,027,898 671,001 226,120 99,279
-------------- -------------- ------------ -----------
Total Liabilities...................................... 4,079,331 2,516,874 7,526,397 1,420,423
-------------- -------------- ------------ -----------
<CAPTION>
Vista Large Vista
Cap American Vista
Equity Value Balanced
Fund Fund Fund
------------- ----------- ------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value (Note 1).................... $ 111,711,612 $ 9,921,534 $ 76,974,108
Cash........................................................ -- 63 314,544
Receivables:
Investment securities sold................................ 320,671 -- --
Variation margin.......................................... -- -- --
Interest and dividends.................................... 124,115 11,036 594,861
Fund shares sold.......................................... 203,859 -- 491,023
Other assets................................................ 37,179 42,988 18,553
------------ ---------- -----------
Total assets........................................... 112,397,436 9,975,621 78,393,089
------------ ---------- -----------
LIABILITIES:
Payable for investment securities purchased................. 421,375 -- --
Payable for Fund shares redeemed............................ 1,291,181 -- 32,256
Payable to custodian........................................ 8,227 -- --
Dividends payable........................................... -- -- --
Accrued liabilities: (Note 2)
Administration fees....................................... 4,367 800 9,379
Distribution fees......................................... 4,170 -- 20,207
Investment advisory fees.................................. -- 800 29,388
Shareholder servicing fees................................ 21,840 -- 2,287
Custodian................................................. 14,101 3,496 15,873
Other..................................................... 94,047 51,520 124,991
------------ ---------- -----------
Total Liabilities...................................... 1,859,308 56,616 234,381
------------ ---------- -----------
</TABLE>
See notes to financial statements.
47
<PAGE> 141
VISTA MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Small
Vista Growth & Vista Capital Cap Vista Equity
Income Growth Equity Income
Fund Fund Fund Fund
--------------- --------------- ------------- ------------
<S> <C> <C> <C> <C>
NET ASSETS:
Paid in capital............................................. $ 1,690,639,209 $ 904,493,990 $ 442,192,270 $ 29,069,348
Accumulated undistributed net investment income............. 1,634,887 (63,224) (213,145) 49,992
Accumulated undistributed net realized gain (loss) on
investment transactions................................... 150,294,237 87,865,933 (4,253,942) 1,139,426
Net unrealized appreciation/depreciation of investments and
futures................................................... 411,509,345 144,700,712 9,435,857 3,901,502
-------------- -------------- ------------ -----------
Net Assets:............................................... $ 2,254,077,678 $ 1,136,997,411 $ 447,161,040 $ 34,160,268
============== ============== ============ ===========
Class A Shares........................................... $ 1,385,365,533 $ 743,231,533 $ 143,369,366 $ 26,736,813
Class B Shares........................................... $ 413,849,279 $ 352,332,993 $ 77,717,153 $ 7,423,455
Institutional Class...................................... $ 454,862,866 $ 41,432,885 $ 226,074,521
Shares of beneficial interest outstanding ($.001 par value;
unlimited number of shares authorized):
Class A Shares........................................... 34,928,369 19,148,049 7,955,487 1,640,737
Class B Shares........................................... 10,488,126 9,188,499 4,368,926 458,403
Institutional Class...................................... 11,444,531 1,064,976 12,494,278
Class A Shares:
Net asset value and redemption price per share*............. $ 39.66 $ 38.82 $ 18.02 $ 16.30
Maximum offering price per share (net asset value per share/
95.25%, 95.5% for VEIF and VBAL and 100% for VAVF)........ $ 41.64 $ 40.76 $ 18.92 $ 17.07
Class B Shares:
Net asset value and offering price per share*............... $ 39.46 $ 38.35 $ 17.79 $ 16.19
Institutional Shares:
Net asset value and offering price per share*............... $ 39.75 $ 38.91 $ 18.09
============== ============== ============ ===========
Cost of Investments.......................................... $ 441,725,768 $ 31,432,379
============ ===========
<CAPTION>
Vista Large Vista
Cap American Vista
Equity Value Balanced
Fund Fund Fund
------------- ----------- ------------
<S> <C> <C> <C>
NET ASSETS:
Paid in capital............................................. $ 82,680,085 $ 7,361,018 $ 67,994,422
Accumulated undistributed net investment income............. 101,013 81,436 191,775
Accumulated undistributed net realized gain (loss) on
investment transactions................................... 8,792,217 703,164 2,903,697
Net unrealized appreciation/depreciation of investments and
futures................................................... 18,964,813 1,773,387 7,068,814
------------ ---------- -----------
Net Assets:............................................... $ 110,538,128 $ 9,919,005 $ 78,158,708
============ ========== ===========
Class A Shares........................................... $ 12,945,912 $ 9,919,005 $ 66,587,881
Class B Shares........................................... $ 3,252,586 $ 11,570,827
Institutional Class...................................... $ 94,339,630
Shares of beneficial interest outstanding ($.001 par value;
unlimited number of shares authorized):
Class A Shares........................................... 1,022,703 724,829 4,866,023
Class B Shares........................................... 258,056 855,393
Institutional Class...................................... 7,442,683
Class A Shares:
Net asset value and redemption price per share*............. $ 12.66 $ 13.68 $ 13.68
Maximum offering price per share (net asset value per share/
95.25%, 95.5% for VEIF and VBAL and 100% for VAVF)........ $ 13.29 $ 13.68 $ 14.32
Class B Shares:
Net asset value and offering price per share*............... $ 12.60 $ 13.53
Institutional Shares:
Net asset value and offering price per share*............... $ 12.68
============ ========== ===========
Cost of Investments.......................................... $ 92,746,799 $ 8,148,146 $ 69,905,295
============ ========== ===========
</TABLE>
- ---------------
* Net assets/shares outstanding
See notes to financial statements.
48
<PAGE> 142
VISTA MUTUAL FUNDS
STATEMENT OF OPERATIONS For the six months ended April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Growth & Vista Capital Vista Small Cap
Income Growth Equity
Fund Fund Fund
-------------- -------------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend........................................................... -- -- $ 834,771
Interest........................................................... -- -- 1,936,781
Investment income from Portfolio................................... $ 23,376,078 $ 9,510,004 --
Foreign taxes withheld............................................. (106,891) (315,311) --
Expenses from Portfolio............................................ (5,081,700) (2,826,416) --
------------ ------------ -----------
Total investment income....................................... 18,187,487 6,368,277 2,771,552
------------ ------------ -----------
EXPENSES: (Note 2)
Administration fees................................................ 1,082,605 587,231 306,005
Distribution fees.................................................. 3,328,402 2,314,013 507,944
Investment Advisory fees........................................... -- -- 1,326,293
Shareholder servicing fees......................................... 2,706,511 1,468,079 351,899
Custodian fees..................................................... -- -- 90,182
Printing and postage............................................... 54,466 49,589 14,785
Professional fees.................................................. 90,661 59,108 19,367
Registration costs................................................. -- -- 38,314
Transfer agent fees................................................ 1,647,958 1,198,165 346,638
Trustees fees and expenses......................................... 21,652 11,745 10,202
Other.............................................................. 156,743 26,133 16,494
------------ ------------ -----------
Total expenses................................................ 9,088,998 5,714,063 3,028,123
------------ ------------ -----------
Less amounts waived (Note 2E)...................................... -- -- 48,534
------------ ------------ -----------
Net expenses..................................................... 9,088,998 5,714,063 2,979,589
------------ ------------ -----------
Net investment income (loss)..................................... 9,098,489 654,214 (208,037)
------------ ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments...................................................... 150,315,925 84,937,679 (4,628,598)
Futures and written option transactions.......................... -- -- 895,074
Change in net unrealized appreciation/depreciation on:
Investments...................................................... 46,240,833 (32,223,464) (27,775,324)
Futures and written option transactions.......................... -- -- (1,956,296)
------------ ------------ -----------
Net realized and unrealized gain (loss) on investments............. 196,556,758 52,714,215 (33,465,144)
------------ ------------ -----------
Net increase (decrease) in net assets from operations.............. $205,655,247 $ 53,368,429 ($ 33,673,181)
============ ============ ===========
<CAPTION>
Vista
Vista Equity Vista Large Cap American
Income Equity Value
Fund Fund Fund
--------------- --------------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend........................................................... $ 254,414 $ 827,720 $ 129,898
Interest........................................................... 116,904 200,066 35486
Investment income from Portfolio................................... -- -- --
Foreign taxes withheld............................................. (2,544) (4,391) --
Expenses from Portfolio............................................ -- -- --
---------- ----------- ------------
Total investment income....................................... 368,774 1,023,395 165,384
---------- ----------- ------------
EXPENSES: (Note 2)
Administration fees................................................ 18,111 80,668 7,537
Distribution fees.................................................. 35,944 17,014 12,564
Investment Advisory fees........................................... 48,306 215,189 35,179
Shareholder servicing fees......................................... 30,192 134,493 12,564
Custodian fees..................................................... 17,069 37,658 6,061
Printing and postage............................................... 2,808 4,954 3,821
Professional fees.................................................. 15,325 13,433 10,470
Registration costs................................................. 24,945 28,160 20,504
Transfer agent fees................................................ 37,584 43,051 11,887
Trustees fees and expenses......................................... 604 2,690 251
Other.............................................................. 1,605 6,985 7,226
---------- ----------- ------------
Total expenses................................................ 232,493 584,295 128,064
---------- ----------- ------------
Less amounts waived (Note 2E)...................................... 42,708 268,986 61,727
---------- ----------- ------------
Net expenses..................................................... 189,785 315,309 66,337
---------- ----------- ------------
Net investment income (loss)..................................... 178,989 708,086 99,047
---------- ----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments...................................................... 1,161,535 8,898,433 707,638
Futures and written option transactions.......................... -- -- --
Change in net unrealized appreciation/depreciation on:
Investments...................................................... 1,210,364 2,004,301 (197,901)
Futures and written option transactions.......................... -- -- --
---------- ----------- ------------
-------
Net realized and unrealized gain (loss) on investments............. 2,371,899 10,902,734 509,737
---------- ----------- ------------
-------
Net increase (decrease) in net assets from operations.............. $ 2,550,888 $11,610,820 $ 608,784
========== =========== ===================
<CAPTION>
Vista
Balanced
Fund
---------------
<S> <C>
INVESTMENT INCOME:
Dividend........................................................... $ 323,615
Interest........................................................... 1,204,364
Investment income from Portfolio................................... --
Foreign taxes withheld............................................. (812)
Expenses from Portfolio............................................ --
-------------
Total investment income....................................... 1,527,167
-------------
EXPENSES: (Note 2)
Administration fees................................................ 53,983
Distribution fees.................................................. 116,182
Investment Advisory fees........................................... 179,988
Shareholder servicing fees......................................... 89,994
Custodian fees..................................................... 38,829
Printing and postage............................................... 6,623
Professional fees.................................................. 10,895
Registration costs................................................. 17,384
Transfer agent fees................................................ 65,924
Trustees fees and expenses......................................... 1,800
Other.............................................................. 2,060
-------------
Total expenses................................................ 583,662
-------------
Less amounts waived (Note 2E)...................................... 94,410
-------------
Net expenses..................................................... 489,252
-------------
Net investment income (loss)..................................... 1,037,915
-------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments...................................................... 3,000,104
Futures and written option transactions.......................... --
Change in net unrealized appreciation/depreciation on:
Investments...................................................... 240,059
Futures and written option transactions.......................... --
-------------
Net realized and unrealized gain (loss) on investments............. 3,240,163
-------------
Net increase (decrease) in net assets from operations.............. $ 4,278,078
===================
</TABLE>
See notes to financial statements.
49
<PAGE> 143
VISTA MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS For the periods indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Small
Vista Growth & Vista Capital Cap
Income Growth Equity Income
Fund Fund Fund
---------------------------------- ---------------------------------- -------------
11/01/96 Year 11/01/96 Year 11/01/96
Through Ended Through Ended Through
04/30/97 10/31/96 04/30/97 10/31/96 04/30/97
--------------- --------------- --------------- --------------- -------------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income.................. $ 9,098,489 $ 26,779,537 $ 654,214 $ 1,701,257 ($ 208,767)
Net realized gain on investments and
futures transactions................. 150,315,925 159,662,609 84,937,679 132,727,253 (3,733,524)
Change in net unrealized appreciation/
depreciation on investments and
futures.............................. 46,240,833 154,859,839 (32,223,464) 71,516,843 (29,731,620)
--------------- --------------- --------------- --------------- -------------
Increase (decrease) in net assets from
operations........................... 205,655,247 341,301,985 53,368,429 205,945,353 (33,673,911)
--------------- --------------- --------------- --------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
(Note 1C):
Net investment income.................. (8,886,582) (27,278,466) (707,554) (2,370,914) --
Net realized gain on investment
transactions......................... (157,923,666) (90,504,699) (129,251,664) (37,648,366) (4,227,871)
--------------- --------------- --------------- --------------- -------------
Total dividends and
distributions................... (166,810,248) (117,783,165) (129,959,218) (40,019,280) (4,227,871)
--------------- --------------- --------------- --------------- -------------
Increase (decrease) from capital share
transactions (Note 5).................. 225,869,428 (29,330,249) 80,332,238 (40,621,092) 216,036,389
--------------- --------------- --------------- --------------- -------------
Total increase in net assets...... 264,714,427 194,188,571 3,741,449 125,304,981 178,134,607
NET ASSETS:
Beginning of period.................... 1,989,363,251 1,795,174,680 1,133,255,962 1,007,950,981 269,026,433
--------------- --------------- --------------- --------------- -------------
End of period.......................... $ 2,254,077,678 $ 1,989,363,251 $ 1,136,997,411 $ 1,133,255,962 $ 447,161,040
=============== =============== =============== =============== ==============
<CAPTION>
Vista Equity
Income
Fund
----------------------------
Year 11/01/96 Year
Ended Through Ended
10/31/96 04/30/97 10/31/96
------------- ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income.................. ($ 230,176) $ 178,989 $ 329,159
Net realized gain on investments and
futures transactions................. 3,988,463 1,161,535 1,828,111
Change in net unrealized appreciation/
depreciation on investments and
futures.............................. 32,569,137 1,210,364 1,356,617
------------- ------------ ------------
Increase (decrease) in net assets from
operations........................... 36,327,424 2,550,888 3,513,887
------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
(Note 1C):
Net investment income.................. (112,777) (179,339) (305,452)
Net realized gain on investment
transactions......................... (926,492) (1,849,471) (736,935)
------------- ------------ ------------
Total dividends and
distributions................... (1,039,269) (2,028,810) (1,042,387)
------------- ------------ ------------
Increase (decrease) from capital share
transactions (Note 5).................. 168,374,984 15,585,791 3,843,734
------------- ------------ ------------
Total increase in net assets...... 203,663,139 16,107,869 6,315,234
NET ASSETS:
Beginning of period.................... 65,363,294 18,052,399 11,737,165
------------- ------------ ------------
End of period.......................... $ 269,026,433 $ 34,160,268 $ 18,052,399
============== ============ ============
</TABLE>
See notes to financial statements.
50
<PAGE> 144
VISTA MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS For the periods indicated (unaudited)
(continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista
Vista Large Cap American
Equity Value
Fund* Fund
------------------------------ -----------
11/01/96 Year 11/01/96
Through Ended Through
04/30/97 10/31/96 04/30/97
------------- ------------- -----------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income........................................................... $ 708,086 $ 1,529,482 $ 99,047
Net realized gain on investments and futures transactions....................... 8,898,433 15,140,787 707,638
Change in net unrealized appreciation/ depreciation on investments and futures... 2,004,301 6,075,061 (197,901)
------------- ------------- -----------
Increase (decrease) in net assets from operations............................... 11,610,820 22,745,330 608,784
------------- ------------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1C):
Net investment income........................................................... (712,590) (1,487,894) (72,761)
Net realized gain on investment transactions.................................... (15,240,115) (6,908,375) (378,357)
------------- ------------- -----------
Total dividends and distributions.......................................... (15,952,705) (8,396,269) (451,118)
------------- ------------- -----------
Increase (decrease) from capital share transactions (Note 5)..................... 7,200,695 37,913,034 151,939
------------- ------------- -----------
Total increase in net assets............................................... 2,858,810 52,262,095 309,605
NET ASSETS:
Beginning of period............................................................. 107,679,318 55,417,223 9,609,400
------------- ------------- -----------
End of period................................................................... $ 110,538,128 $ 107,679,318 $ 9,919,005
============== ============== ===========
<CAPTION>
Vista
Balanced
Fund
----------------------------
12/01/95 11/01/96 Year
Through Through Ended
10/31/95** 04/30/97 10/31/96
----------- ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income........................................................... $ 106,948 $ 1,037,915 $ 1,448,498
Net realized gain on investments and futures transactions....................... 500,892 3,000,104 3,950,647
Change in net unrealized appreciation/ depreciation on investments and futures... 716,130 240,059 4,273,241
----------- ------------ ------------
Increase (decrease) in net assets from operations............................... 1,323,970 4,278,078 9,672,386
----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1C):
Net investment income........................................................... (137,004) (965,682) (1,328,956)
Net realized gain on investment transactions.................................... (184,857) (3,997,114) (1,045,527)
----------- ------------ ------------
Total dividends and distributions.......................................... (321,861) (4,962,796) (2,374,483)
----------- ------------ ------------
Increase (decrease) from capital share transactions (Note 5)..................... 208,701 13,873,780 17,603,211
----------- ------------ ------------
Total increase in net assets............................................... 1,210,810 13,189,062 24,901,114
NET ASSETS:
Beginning of period............................................................. 8,398,590 64,969,646 40,068,532
----------- ------------ ------------
End of period................................................................... $ 9,609,400 $ 78,158,708 $ 64,969,646
=========== ============ ============
</TABLE>
- ---------------
* Previously the Vista Equity Fund.
** In 1996, the fund changed its fiscal year end from November 30 to October 31.
See notes to financial statements.
51
<PAGE> 145
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (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 Growth and Income Fund
("VGIF"), Vista Capital Growth Fund ("VCGF"), Vista Small Cap Equity Fund
("VSCEF"), Vista Equity Income Fund ("VEIF"), Vista Large Cap Equity Fund
("VLCEF") (formerly Vista Equity Fund), Vista American Value Fund ("VAVF") and
Vista Balanced Fund ("VBAL"), collectively, the "Funds", are seven separate
series of The Trust. The Funds offer various classes of shares as follows:
<TABLE>
<CAPTION>
Fund Classes Offered
- ------ -------------------------------------------------------------
<S> <C>
VGIF Class A, Class B, Institutional
VCGF Class A, Class B, Institutional
VSCEF Class A, Class B, Institutional
VEIF Class A, Class B
VLCEF Class A, Class B, Institutional
VAVF Class A
VBAL Class A, Class B
</TABLE>
Class A shares, with the exception of VAVF, 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. No sales charges are assessed with respect to the Institutional Class.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Funds:
A. VGIF and VCGF
Effective November 29, 1993, VGIF and VCGF adopted the Master Feeder Fund
structure through the contribution of their investment assets to their
respective portfolios in exchange for beneficial interests in such
portfolios of an equal value. Prior thereto each Fund owned individual
investment securities. VGIF and VCGF seek to achieve their investment
objective by investing all of their investable assets in the Growth and
Income Portfolio and the Capital Growth Portfolio respectively (the
"Portfolios") which like the Funds, are open-end management investment
companies having the same investment objectives as the Funds. As of April
30, 1997 VGIF and VCGF owned 94.82% and 99.99% of the Growth and Income
Portfolio, and of the Capital Growth Portfolio, respectively. 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 -- VGIF and VCGF record their investments
in their respective Portfolios at value. Securities of the Portfolios are
recorded at value as more fully discussed in the notes to those financial
statements.
2. Investment income and expenses -- VGIF and VCGF 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. Realized gains/losses and changes
in unrealized appreciation/depreciation represent the Fund's share of
such elements allocated from the portfolio.
B. VSCEF, VEIF, VLCEF, VAVF and VBAL
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
52
<PAGE> 146
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
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 invest in stock index futures contracts for the purpose of
hedging the Fund against share price volatility, which purpose may or may
not be achieved. When the Fund is not fully invested in the securities
market, it may enter into "long" positions in futures or options
contracts in order to gain rapid market exposure that may in part or
entirely offset increases in the cost of securities intended for
purchase. Use of futures contracts subject the Fund to risk of loss in
excess of amounts shown on the Statement of Assets and Liabilities, up to
the amount of the value of the futures contracts as shown in the
Portfolio of Investments at April 30, 1997.
The Fund may enter into futures contracts only on exchanges or boards of
trade. The exchange or board of trade acts as the counterparty to each
futures transaction, therefore, the Fund's credit risk is limited to
failure of the exchange or board of trade.
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 options and the change is
recorded in a corresponding unrealized gain or loss account. When a
written option expires on its stipulated expiration date, or when a
closing transaction is entered into, the related liability is
extinguished and the Fund realizes a gain (or loss if the cost of the
closing transaction exceeds the premium received when the option was
written).
The VSCEF writes options on stock index securities futures. These options
are settled for cash and subject the Fund to market risk in excess of the
amounts that are reflected in the Statement of Assets and Liabilities.
The Fund, 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, 1997 the Funds had no outstanding written options.
5. 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.
6. Dollar Rolls -- VBAL enters into dollar rolls in which the Fund
sells mortgage-backed securities for delivery in the current month and
simultaneously contracts to repurchase substantially similar (same type,
coupon and maturity) securities on a specified future date. During the
roll period, the Fund forgoes principal and interest paid on the
securities. The Fund is compensated by the interest earned on the cash
53
<PAGE> 147
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
proceeds of the initial sale and a fee earned for entering into the roll
transaction. The fee is amortized into income over the duration of the
roll transaction.
C. General Policies
1. Organization costs -- Organization and initial registration costs
incurred in connection with establishing the Funds have been deferred and
are being amortized on a straight-line basis over a sixty month period
beginning at the commencement of operations of each Fund.
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.
The adjustments for the Funds relate primarily to the character for tax
purposes of certain short-term gains or losses. Dividends and
distributions which exceed net investment income or net realized capital
gains for financial reporting purposes but not for tax purposes are
reported as distributions in excess of net investment income or net
realized capital gains.
4. Expenses -- Expenses directly attributable to a Fund are charged to
that Fund; other expenses are allocated proportionately among each Fund
within the Trust in relation to the net assets of each Fund or on another
reasonable basis. In calculating the net asset value per share of each
class, investment income, realized and unrealized gains and losses and
expenses other than class specific expenses, are allocated daily to each
class of shares based upon the proportion of net assets of each class at
the beginning of each day.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A. Investment advisory fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank, ("Chase" or the "Adviser") acts as the
Investment Adviser to the VSCEF, VEIF, VLCEF, VAVF, and VBAL. Chase is a
direct wholly-owned subsidiary of The Chase Manhattan Corporation. As
Investment Adviser, Chase supervises the investments of the Funds and for
such services is paid a fee. The fee is computed daily and paid monthly at
an annual rate equal to 0.50% for VBAL, 0.65% for VSCEF and 0.40% for VEIF
and for VLCEF; and 0.70% for VAVF of the average daily net assets. The
Adviser, voluntarily waived all or a portion of its fees as outlined in Note
2.E. below.
Chase Asset Management, Inc. ("CAM"), a registered investment adviser, is
the sub-investment adviser to each Fund, with the exception of VAVF,
pursuant to a Sub-Investment Advisory Agreement between CAM and Chase. CAM
is a wholly owned subsidiary of Chase and is entitled to receive a fee,
payable by Chase from its advisory fee, at an annual rate equal to 0.20% of
VEIF and VLCEF; 0.25% of VBAL; and 0.30% of VSCEF's of average daily net
assets.
VanDeventer and Hoch, a registered investment adviser is the sub-investment
advisor for VAVF pursuant to a Sub-Investment Advisory Agreement with Chase
and is paid a fee by Chase at an annual rate equal to 0.35% of the VAVF's
average daily net assets.
B. Shareholder servicing fees -- The Trust has adopted an Administrative
Services Plan which, among other things, provides that the Trust on behalf
of the Funds may obtain the services of one or more Shareholder Servicing
Agents. For its services, the Shareholder Servicing Agents receive a fee
that is computed daily and paid monthly at an annual rate equal to 0.25% of
the average daily net assets of each of the classes of the funds with the
54
<PAGE> 148
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
exception of the Class A Shares of the VSCEF. The VSCEF is charged a fee
from non-affiliated shareholder serving agents not to exceed 0.25% of the
net assets of the Class. For the six months ended April 30, 1997, Chase's
Shareholder Servicing charges amounted to: VGIF: $2,629,007, VCGF:
$1,364,080, VSCEF: $273,578, VEIF: $2,590, VLCEF: $134,493, VAVF: $0, and
VBAL: $12,584.
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 (with the exception of VAVF) for the VGIF, VCGF, VSCEF, VEIF,
VLCEF, VAVF, and VBAL in accordance with Rule 12b-1 under the 1940 Act.
There is no Distribution Plan for the Institutional Classes. The Class A
Distribution Plans provide that each Fund shall pay distribution 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 with the
exception of VGIF and VCGF which pay 0.20% 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.
Under Class A Distribution Plans for VGIF and VCGF, the Class A shares are
also permitted to pay an additional fee at an annual rate not to exceed
0.05% of its average daily net assets in anticipation of, or as
reimbursement for, expenses incurred in connection with print or electronic
media advertising in connection with the sale of Fund shares. The maximum
compensation paid by the Class A shares under the Class A Distribution Plan
would be at an annual rate of 0.25% of its average daily net assets.
The Distributor voluntarily waived all or a portion of distribution fees and
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 VSCEF,
VEIF, VAVF, VBAL and VLCEF a fee computed at the annual rate equal to 0.10%
of the respective Fund's average daily net assets and from VGIF and VCGF, a
fee computed 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 six months ended April 30, 1997, the
Administrator and Distributor, Investment Adviser, Shareholder Servicing
Agent, and Sub-Administrator voluntarily waived fees for each of the Funds
as follows:
<TABLE>
<CAPTION>
VSCEF VEIF VLCEF VAVF VBAL
-------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C>
Administration................... -- $ 1,561 $ 53,797 $ 3,779 --
Distribution..................... -- -- -- 12,564 --
Investment Advisory.............. -- 13,545 215,189 32,820 $ 17,000
Shareholder Servicing............ $ 48,534 27,602 -- 12,564 77,410
-------- -------- --------- -------- --------
Total........................ $ 48,534 $ 42,708 $ 268,986 $ 61,727 $ 94,410
======== ======== ========= ======== ========
</TABLE>
F. Other -- Certain officers of the Trust are officers of Vista Fund
Distributors, Inc. or of its parent corporation, BISYS.
Chase provides portfolio accounting and custody services for VSCEF, VEIF,
VLCEF, VAVF and VBAL. Compensation for such services are presented in the
Statement of Operations as custodian fees.
55
<PAGE> 149
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS -- For the six months ended April 30, 1997,
purchases and sales of investments (excluding short-term investments) were as
follows:
<TABLE>
<CAPTION>
VSCEF VEIF VLCEF VAVF VBAL
-------------- -------------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
Purchases (excluding
U.S. Government)..... $ 257,699,476 $ 15,511,474 $ 30,482,482 $ 1,737,248 $ 21,828,979
Sales (excluding U.S.
Government).......... 83,850,565 7,255,440 37,625,457 2,081,351 21,793,031
Purchases of U.S.
Government........... -- 3,036,350 -- -- 39,063,980
Sales of U.S.
Government........... -- 364,810 -- -- 39,439,619
<CAPTION>
VGIF VCGF
-------------- --------------
<S> <C> <C>
Increase in Portfolio
Investment........... $ 572,205,971 $ 605,332,476
Decrease in Portfolio
Investment........... (522,552,105) (677,659,164)
</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, 1997 are as follows:
<TABLE>
<CAPTION>
VSCEF VEIF VLCEF VAVF VBAL
------------- ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
Aggregate cost........... $ 441,725,768 $ 31,432,379 $ 92,746,799 $ 8,148,146 $ 69,905,295
------------- ------------ ------------ ----------- ------------
Gross unrealized
appreciation............ 45,121,744 4,234,435 20,371,385 2,044,169 8,012,805
Gross unrealized
depreciation............ (33,915,776) (332,933) (1,406,572) (270,782) (943,991)
------------- ------------ ------------ ----------- ------------
Net unrealized
appreciation............ $ 11,205,968 $ 3,901,502 $ 18,964,813 $ 1,773,387 $ 7,068,814
============ =========== =========== ========== ===========
</TABLE>
56
<PAGE> 150
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
5. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST -- Transactions in Shares of
Beneficial Interest were as follows:
<TABLE>
<CAPTION>
Vista Growth and Income Fund
------------------------------------------------------------
11/01/96
Through Year Ended
04/30/97 October 31, 1996
--------------------------- -----------------------------
Amount Shares Amount Shares
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold................ $ 129,837,663 3,293,557 $ 306,503,072 8,420,913
Shares issued in
reinvestment of
distributions............ 123,098,477 3,257,071 92,236,921 2,484,259
Shares redeemed............ (466,985,554) (12,192,613) (513,091,350) (13,861,216)
------------- ----------- --------------- -----------
Net increase (decrease) in
Trust shares
outstanding.............. ($214,049,414) (5,641,985) ($ 114,351,357) (2,956,044)
============== =========== =============== ===========
</TABLE>
<TABLE>
<CAPTION>
Vista Growth and Income Fund
------------------------------------------------------------
11/01/96
Through Year Ended
04/30/97 October 31, 1996
--------------------------- -----------------------------
Amount Shares Amount Shares
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Class B
Shares sold................ $ 36,040,371 915,110 $ 79,219,484 2,192,200
Shares issued in
reinvestment of
distributions............ 29,277,204 780,519 16,665,854 458,019
Shares redeemed............ (27,676,845) (702,984) (37,163,821) (1,018,127)
------------- ----------- --------------- -----------
Net increase (decrease) in
Trust shares
outstanding.............. $ 37,640,730 992,645 $ 58,721,517 1,632,092
============== =========== =============== ===========
</TABLE>
<TABLE>
<CAPTION>
Vista Growth and Income Fund
------------------------------------------------------------
11/01/96 01/25/96
Through Through
04/30/97 10/31/96*
--------------------------- -----------------------------
Amount Shares Amount Shares
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Institutional Class
Shares sold................ $ 404,728,310 10,789,871 $ 33,434,619 905,660
Shares issued in
reinvestment of
distributions............ 3,200,631 84,412 332,694 8,842
Shares redeemed............ (5,650,829) (142,309) (7,467,722) (201,945)
------------- ----------- --------------- -----------
Net increase (decrease) in
Trust shares
outstanding.............. $ 402,278,112 10,731,974 $ 26,299,591 712,557
============== =========== =============== ===========
</TABLE>
57
<PAGE> 151
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Capital Growth Fund
------------------------------------------------------------
11/01/96
Through Year Ended
04/30/97 October 31, 1996
--------------------------- -----------------------------
Amount Shares Amount Shares
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold................ $ 614,790,822 14,990,679 $ 1,071,881,119 28,226,297
Shares issued in
reinvestment of
distributions............ 80,691,807 2,040,617 28,044,019 781,770
Shares redeemed............ (670,680,903) (16,346,954) (1,195,855,101) (31,513,482)
------------- ----------- --------------- -----------
Net increase (decrease) in
Trust shares
outstanding.............. $ 24,801,726 684,342 ($ 95,929,963) (2,505,415)
============== =========== =============== ===========
</TABLE>
<TABLE>
<CAPTION>
Vista Capital Growth Fund
------------------------------------------------------------
11/01/96
Through Year Ended
04/30/97 October 31, 1996
--------------------------- -----------------------------
Amount Shares Amount Shares
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Class B
Shares sold................ $ 46,100,220 1,157,572 $ 77,108,472 2,040,428
Shares issued in
reinvestment of
distributions............ 37,998,025 971,071 9,795,148 275,885
Shares redeemed............ (40,845,495) (1,038,360) (59,845,813) (1,574,692)
------------- ----------- --------------- -----------
Net increase (decrease) in
Trust shares
outstanding.............. $ 43,252,750 1,090,283 $ 27,057,807 741,621
============== =========== =============== ===========
</TABLE>
<TABLE>
<CAPTION>
Vista Capital Growth Fund
------------------------------------------------------------
11/01/96 01/25/96
Through Through
04/30/97 10/31/96*
--------------------------- -----------------------------
Amount Shares Amount Shares
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Institutional Class
Shares sold................ $ 17,925,683 443,522 $ 32,122,751 857,195
Shares issued in
reinvestment of
distributions............ 4,195,447 106,026 85,889 2,222
Shares redeemed............ (9,843,368) (242,284) (3,957,576) (101,705)
------------- ----------- --------------- -----------
Net increase (decrease) in
Trust shares
outstanding.............. $ 12,277,762 307,264 $ 28,251,064 757,712
============== =========== =============== ===========
</TABLE>
58
<PAGE> 152
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Small Cap Equity Fund
------------------------------------------------------------
11/01/96
Through Year Ended
04/30/97 October 31, 1996
--------------------------- -----------------------------
Amount Shares Amount Shares
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold................ $ 78,893,260 3,983,802 $ 138,067,616 7,720,099
Shares issued in
reinvestment of
distributions............ 1,890,280 94,656 686,496 43,642
Shares redeemed............ (72,576,406) (3,668,242) (65,215,259) (3,588,493)
Hanover acquisition........ -- -- 7,769,538 467,812
------------- ----------- --------------- -----------
Net increase (decrease) in
Trust shares
outstanding.............. $ 8,207,134 410,216 $ 81,308,391 4,643,060
============== =========== =============== ===========
</TABLE>
<TABLE>
<CAPTION>
Vista Small Cap Equity Fund
------------------------------------------------------------
11/01/96
Through Year Ended
04/30/97 October 31, 1996
--------------------------- -----------------------------
Amount Shares Amount Shares
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Class B
Shares sold................ $ 20,395,622 1,043,982 $ 48,475,336 2,773,564
Shares issued in
reinvestment of
distributions............ 1,168,830 59,121 306,606 19,554
Shares redeemed............ (10,586,465) (560,693) (7,189,827) (407,340)
Hanover acquisition........ -- -- -- --
------------- ----------- --------------- -----------
Net increase (decrease) in
Trust shares
outstanding.............. $ 10,977,987 542,410 $ 41,592,115 2,385,778
============== =========== =============== ===========
</TABLE>
<TABLE>
<CAPTION>
Vista Small Cap Equity Fund
------------------------------------------------------------
11/01/96 05/07/96
Through Through
04/30/97 10/31/96*
--------------------------- -----------------------------
Amount Shares Amount Shares
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Institutional Class
Shares sold................ $ 198,890,959 9,922,510 $ 7,753,068 409,919
Shares issued in
reinvestment of
distributions............ 803,425 40,111 -- --
Shares redeemed............ (2,843,116) (149,542) (3,601) (186)
Hanover Acquisition........ -- -- 37,725,011 2,271,466
------------- ----------- --------------- -----------
Net increase (decrease) in
Trust shares
outstanding.............. $ 196,851,268 9,813,079 $ 45,474,478 2,681,199
============== =========== =============== ===========
</TABLE>
59
<PAGE> 153
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Equity Income Fund
------------------------------------------------------------
11/01/96
Through Year Ended
04/30/97 October 31, 1996
--------------------------- -----------------------------
Amount Shares Amount Shares
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold................ $ 8,888,013 545,359 $ 5,415,420 357,907
Shares issued in
reinvestment of
distributions............ 1,744,667 113,261 878,167 63,521
Shares redeemed............ (1,831,798) (112,602) (2,986,103) (202,972)
------------- ----------- --------------- -----------
Net increase (decrease) in
Trust shares
outstanding.............. $ 8,800,882 546,018 $ 3,307,484 218,456
============== =========== =============== ===========
</TABLE>
<TABLE>
<CAPTION>
Vista Equity Income Fund
------------------------------------------------------------
11/01/96 05/07/96
Through Through
04/30/97 10/31/96*
--------------------------- -----------------------------
Amount Shares Amount Shares
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Class B
Shares sold................ $ 6,956,827 433,355 $ 546,464 35,836
Shares issued in
reinvestment of
distributions............ 94,036 6,128 1,831 120
Shares redeemed............ (265,954) (16,244) (12,045) (792)
------------- ----------- --------------- -----------
Net increase (decrease) in
Trust shares
outstanding.............. $ 6,784,909 423,239 $ 536,250 35,164
============== =========== =============== ===========
</TABLE>
<TABLE>
<CAPTION>
Vista Large Cap Equity Fund#
------------------------------------------------------------
11/01/96 05/08/96
Through Through
04/30/97 10/31/96*
--------------------------- -----------------------------
Amount Shares Amount Shares
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold................ $ 4,162,004 327,920 $ 8,241,907 674,653
Shares issued in
reinvestment of
distributions............ 1,249,181 105,568 40,764 3,227
Shares redeemed............ (509,273) (40,829) (606,869) (47,836)
Hanover acquisition........ -- -- -- --
------------- ----------- --------------- -----------
Net increase (decrease) in
Trust shares
outstanding.............. $ 4,901,912 392,659 $ 7,675,802 630,044
============== =========== =============== ===========
</TABLE>
60
<PAGE> 154
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Large Capital Equity Fund#
------------------------------------------------------------
11/01/96 05/07/96
Through Through
04/30/97 10/31/96*
--------------------------- -----------------------------
Amount Shares Amount Shares
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Class B
Shares sold................ $ 3,024,315 242,723 $ 294,905 23,070
Shares issued in
reinvestment of
distributions............ 72,876 6,181 500 38
Shares redeemed............ (168,341) (13,956) -- --
Hanover acquisition........ -- -- -- --
------------- ----------- --------------- -----------
Net increase (decrease) in
Trust shares
outstanding.............. $ 2,928,850 234,948 $ 295,405 23,108
============== =========== =============== ===========
</TABLE>
<TABLE>
<CAPTION>
Vista Large Cap Equity Fund#
------------------------------------------------------------
11/01/96
Through Year Ended
04/30/97 October 31, 1996
--------------------------- -----------------------------
Amount Shares Amount Shares
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Institutional Class
Shares sold................ $ 10,452,642 836,089 $ 13,383,049 1,087,973
Shares issued in
reinvestment of
distributions............ 7,137,276 602,565 7,388,210 646,401
Shares redeemed............ (18,219,985) (1,456,718) (45,574,669) (3,792,063)
Hanover acquisition........ -- -- 54,745,237 4,989,990
------------- ----------- --------------- -----------
Net increase (decrease) in
Trust shares
outstanding.............. ($ 630,067) (18,064) $ 29,941,827 2,932,301
============== =========== =============== ===========
</TABLE>
<TABLE>
<CAPTION>
Vista American Value Fund
------------------------------------------------------------
11/01/96 12/01/96
Through Through
04/30/97 10/31/96##
--------------------------- -----------------------------
Amount Shares Amount Shares
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold................ $ 688,540 49,797 $ 1,539,037 122,851
Shares issued in
reinvestment of
distributions............ 441,671 32,814 316,992 25,852
Shares redeemed............ (978,272) (70,142) (1,647,329) (130,112)
------------- ----------- --------------- -----------
Net increase (decrease) in
Trust shares
outstanding.............. $ 151,939 12,469 $ 208,700 18,591
============== =========== =============== ===========
</TABLE>
61
<PAGE> 155
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Balanced Fund
------------------------------------------------------------
11/01/96
Through Year Ended
04/30/97 October 31, 1996
--------------------------- -----------------------------
Amount Shares Amount Shares
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold................ $ 12,284,787 887,457 $ 11,377,412 866,348
Shares issued in
reinvestment of
distributions............ 4,187,077 314,109 1,999,265 154,306
Shares redeemed............ (4,539,292) (328,600) (7,725,832) (587,614)
IEEE merger................ -- -- 9,380,999 849,658
------------- ----------- --------------- -----------
Net increase (decrease) in
Trust shares
outstanding.............. $ 11,932,572 872,966 $ 15,031,844 1,282,698
============== =========== =============== ===========
</TABLE>
<TABLE>
<CAPTION>
Vista Balanced Fund
------------------------------------------------------------
11/01/96
Through Year Ended
04/30/97 October 31, 1996
--------------------------- -----------------------------
Amount Shares Amount Shares
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Class B
Shares sold................ $ 2,164,860 159,912 $ 3,442,067 264,808
Shares issued in
reinvestment of
distributions............ 684,828 51,884 330,884 25,817
Shares redeemed............ (908,480) (67,290) (1,201,584) (92,310)
------------- ----------- --------------- -----------
Net increase (decrease) in
Trust shares
outstanding.............. $ 1,941,208 144,506 $ 2,571,367 198,315
============== =========== =============== ===========
</TABLE>
- ---------------
* Commencement of offering class of shares
** Fund commenced operations.
# Previously the Vista Equity Fund.
## In 1996, the Fund changed its fiscal year end from November 30 to October 31.
62
<PAGE> 156
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
6. RETIREMENT PLAN -- The funds have adopted an unfunded noncontributory
defined benefit pension plan covering all independent trustees of the Funds who
will have served as an independent trustee for at least five years at the time
of retirement. Benefits under this plan are based on compensation and years of
service. Pension expenses for the six month period ended April 30, 1997,
included in Trustees Fees and Expenses in the Statement of Operations, and
accrued pension liability included in other accrued liabilities in the Statement
of Assets and Liabilities were as follows:
<TABLE>
<CAPTION>
Accrued
Pension Pension
Expenses Liability
-------- -------
<S> <C> <C>
GIF.............................................................. $11,106 $70,532
CGF.............................................................. 6,180 40,592
VSCEF............................................................ 2,934 20,040
VEIF............................................................. 204 1,417
VLCEF............................................................ 1,148 7,177
VAVF............................................................. 110 705
VBAL............................................................. 730 4,807
</TABLE>
7. MERGERS -- On May 6, 1996, The Vista American Value Fund acquired the net
assets of the Hanover American Value Fund in a tax-free reorganization. At the
time of the reorganization, the acquired Fund had approximately $8.4 million in
net assets. The Vista Fund had no assets and no activity prior to the
acquisition. The information included in the financial statements for the VAVF
for the period prior to May 6, 1996 relates to the predecessor Hanover Fund.
Also on May 6, 1996, The Vista Large Cap Equity Fund and the Vista Small Cap
Equity Fund acquired all of the net assets of the Hanover Blue Chip Growth Fund
and the Hanover Small Capitalization Growth Fund, respectively, pursuant to a
plan of reorganization approved by Hanover Fund shareholders in April of 1996.
The acquisition was accomplished by a tax-free exchange of shares as shown in
the table below.
On June 10, 1996, the Vista Balanced Fund acquired all the net assets of the
IEEE Balanced Fund pursuant to a plan of reorganization approved by the IEEE
Balanced Fund shareholders in April of 1996. The acquisition was accomplished by
a tax-free exchange of shares as shown in the table below.
<TABLE>
<CAPTION>
The Blue The Small
Chip Growth Capitalization
Acquired Funds Fund Growth Fund IEEE
------------ ------------ -----------
<S> <C> <C> <C>
Shares Exchanged.......................... 5,277,621 4,587,887 955,190
Net Assets (in millions).................. $ 60.4 $ 50.4 $ 11.3
</TABLE>
<TABLE>
<CAPTION>
Vista Vista Vista
Large Cap Small Cap Balanced
Vista Funds Equity Fund Equity Fund Fund
------------ ------------ -----------
<S> <C> <C> <C>
Vista Shares Issued....................... 4,989,990 2,739,278 849,658
Aggregate Net Assets After Acquisition.... $118,556,169 $194,143,252 $58,491,280
</TABLE>
63
<PAGE> 157
VISTA MUTUAL FUNDS
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OF BENEFICIAL INTEREST
OUTSTANDING
Throughout each period indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Growth & Income Fund
---------------------------------------------------------------------------------
Class A
---------------------------------------------------------------------------------
11/01/96 Year Ended
Through ------------------------------------------------------------------
04/30/97 10/31/96 10/31/95 10/31/94 10/31/93 10/31/92
---------- ---------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period..... $ 39.21 $ 34.96 $ 30.26 $ 30.99 $ 26.60 $ 25.49
---------- ---------- ---------- ---------- -------- --------
Income From Investment Operations
Net Investment Income................. 0.358 0.599 0.614 0.466 0.341 0.313
Net Gains or (Losses) in Securities
(both realized and unrealized)....... 3.430 5.960 4.710 (0.429) 5.007 2.702
---------- ---------- ---------- ---------- -------- --------
Total from Investment Operations...... 3.788 6.559 5.324 0.037 5.348 3.015
---------- ---------- ---------- ---------- -------- --------
Less Distributions
Dividends from Net Investment
Income............................... 0.184 0.549 0.621 0.422 0.338 0.313
Distributions from Capital Gains...... 3.150 1.762 -- 0.345 0.620 1.587
---------- ---------- ---------- ---------- -------- --------
Total Distributions................... 3.334 2.311 0.621 0.767 0.958 1.900
---------- ---------- ---------- ---------- -------- --------
Net Asset Value, End of Period........... $ 39.66 $ 39.21 $ 34.96 $ 30.26 $ 30.99 $ 26.60
========== ========== ========== ========== ======== ========
Total Return (1)......................... 10.10% 19.60% 17.79% 0.15% 20.47% 12.34%
Ratios/Supplemental Data
Net Assets, End of Period (000
omitted).............................. $1,385,366 $1,590,893 $1,521,489 $1,413,899 $949,465 $149,506
Ratio of Expenses to Average Net Assets
#..................................... 1.26% 1.32% 1.43% 1.40% 1.39% 1.43%
Ratio of Net Investment Income to
Average Net Assets #.................. 0.88% 1.46% 1.93% 1.60% 1.07% 1.19%
Ratio of Expenses Without Waivers and
Assumption of Expenses to Average Net
Assets #.............................. 1.26% 1.32% 1.45% 1.40% 1.39% 1.46%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses
#..................................... 0.88% 1.46% 1.91% 1.60% 1.07% 1.16%
Portfolio Turnover Rate.................. 41% 56%
<CAPTION>
Class B Class I
------------------------------------------------- -----------------------
11/01/96 Year Ended 11/04/93** 11/01/96 01/25/96**
Through --------------------- Through Through Through
04/30/97 10/31/96 10/31/95 10/31/94 04/30/97 10/31/96
-------- -------- -------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period..... $ 39.02 $ 34.81 $ 30.12 $ 30.39 $ 39.26 $ 34.80
-------- -------- -------- -------- -------- -------
Income From Investment Operations
Net Investment Income................. 0.154 0.366 0.463 0.336 0.479 0.467
Net Gains or (Losses) in Securities
(both realized and unrealized)....... 3.520 5.984 4.700 0.109 3.390 4.459
-------- -------- -------- -------- -------- -------
Total from Investment Operations...... 3.674 6.350 5.163 0.445 3.869 4.926
-------- -------- -------- -------- -------- -------
Less Distributions
Dividends from Net Investment
Income............................... 0.080 0.379 0.470 0.370 0.234 0.471
Distributions from Capital Gains...... 3.150 1.762 -- 0.345 3.150 --
-------- -------- -------- -------- -------- -------
Total Distributions................... 3.230 2.141 0.470 0.715 3.384 0.471
-------- -------- -------- -------- -------- -------
Net Asset Value, End of Period........... $ 39.46 $ 39.02 $ 34.81 $ 30.12 $ 39.75 $ 39.26
======== ======== ======== ======== ======== =======
Total Return (1)......................... 9.84% 19.02% 17.21% 1.55% 10.34% 13.39%
Ratios/Supplemental Data
Net Assets, End of Period (000
omitted).............................. $413,849 $370,496 $273,685 $160,375 $454,863 $ 27,974
Ratio of Expenses to Average Net Assets
#..................................... 1.76% 1.81% 1.93% 1.89% 0.86% 1.24%
Ratio of Net Investment Income to
Average Net Assets #.................. 0.38% 0.95% 1.38% 1.21% 1.24% 1.73%
Ratio of Expenses Without Waivers and
Assumption of Expenses to Average Net
Assets #.............................. 1.76% 1.81% 1.94% 1.89% 0.86% 1.24%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses
#..................................... 0.38% 0.95% 1.37% 1.21% 1.24% 1.73%
Portfolio Turnover Rate..................
</TABLE>
- ---------------
** Commencement of offering of class of shares.
# Short periods have been annualized.
(1) Total return figures do not include the effect of any sales load.
See notes to financial statements.
64
<PAGE> 158
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 Capital Growth Fund
--------------------------------------------------------------------------------------
Class A Class B
------------------------------------------------------------------------- --------
11/01/96 Year Ended 11/01/96
Through ------------------------------------------------------------ Through
04/30/97 10/31/96 10/31/95 10/31/94 10/31/93 10/31/92 04/30/97
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period..... $ 41.60 $ 35.65 $ 32.17 $ 32.01 $ 25.12 $ 22.02 $ 41.21
-------- -------- -------- -------- ------- -------- --------
Income From Investment Operations
Net Investment Income................. 0.085 0.147 0.189 0.099@ 0.064 0.078 (0.049)
Net Gains or (Losses) in Securities
(both realized and unrealized)....... 1.970 7.270 4.160 0.719 7.173 3.044 1.990
-------- -------- -------- -------- ------- -------- --------
Total from Investment Operations...... 2.055 7.417 4.349 0.818 7.237 3.122 1.941
-------- -------- -------- -------- ------- -------- --------
Less Distributions
Dividends from Net Investment
Income............................... 0.035 0.117 0.189 0.027 0.093 0.017 --
Distributions from Capital Gains...... 4.800 1.355 0.676 0.631 0.257 -- 4.800
-------- -------- -------- -------- ------- -------- --------
Total Distributions................... 4.835 1.472 0.865 0.658 0.350 0.017 4.800
-------- -------- -------- -------- ------- -------- --------
Net Asset Value, End of Period........... $ 38.82 $ 41.60 $ 35.65 $ 32.17 $ 32.01 $ 25.12 $ 38.35
======== ======== ======== ======== ======= ======== ========
Total Return (1)......................... 4.73% 21.48% 13.89% 2.62% 29.06% 14.16% 4.48%
Ratios/Supplemental Data
Net Assets, End of Period (000
omitted).............................. $743,232 $767,998 $747,575 $549,411 $225,235 $39,836 $352,333
Ratio of Expenses to Average Net Assets
#..................................... 1.30% 1.37% 1.51% 1.49% 1.49% 1.40% 1.80%
Ratio of Net Investment Income to
Average Net Assets #.................. 0.24% 0.39% 0.54% 0.33% 0.12% 0.32% (0.24%)
Ratio of Expenses Without Waivers and
Assumption of Expenses to Average Net
Assets #.............................. 1.30% 1.37% 1.53% 1.50% 1.49% 1.77% 1.80%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses
#..................................... 0.24% 0.39% 0.52% 0.32% 0.12% (0.05%) (0.24%)
Portfolio Turnover Rate.................. 43% 67%
<CAPTION>
Class I
-----------------------
Year Ended 11/04/93** 11/01/96 01/25/96**
--------------------- Through Through Through
10/31/96 10/31/95 10/31/94 04/30/97 10/31/96
-------- -------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period..... $ 35.39 $ 32.03 $ 31.38 $ 41.65 $ 35.26
-------- ------- -------- -------- --------
Income From Investment Operations
Net Investment Income................. (0.076) 0.044 0.011@ 0.215 0.172
Net Gains or (Losses) in Securities
(both realized and unrealized)....... 7.246 4.100 1.296 1.930 6.336
-------- ------- -------- -------- --------
Total from Investment Operations...... 7.170 4.144 1.307 2.145 6.508
-------- ------- -------- -------- --------
Less Distributions
Dividends from Net Investment
Income............................... -- 0.111 0.026 0.085 0.122
Distributions from Capital Gains...... 1.355 0.676 0.631 4.800 --
-------- ------- -------- -------- --------
Total Distributions................... 1.355 0.787 0.657 4.885 0.122
-------- ------- -------- -------- --------
Net Asset Value, End of Period........... $ 41.21 $ 35.39 $ 32.03 $ 38.91 $ 41.65
======== ======= ======== ======== ========
Total Return (1)......................... 20.88% 13.34% 4.19% 4.95% 18.13%
Ratios/Supplemental Data
Net Assets, End of Period (000
omitted).............................. $333,703 $260,376 $124,223 $41,433 $ 31,556
Ratio of Expenses to Average Net Assets
#..................................... 1.87% 2.01% 2.00% 0.92% 1.25%
Ratio of Net Investment Income to
Average Net Assets #.................. (0.21%) 0.02% (0.09%) 0.64% 0.81%
Ratio of Expenses Without Waivers and
Assumption of Expenses to Average Net
Assets #.............................. 1.87% 2.02% 2.02% 0.92% 1.25%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses
#..................................... (0.21%) 0.01% (0.11%) 0.64% 0.81%
Portfolio Turnover Rate..................
</TABLE>
- ---------------
** Commencement of offering of class of shares.
# Short periods have been annualized
@ Calculated based upon average shares outstanding.
(1) Total return figures do not include the effect of any sales load.
See notes to financial statements.
65
<PAGE> 159
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 Small Cap Equity Fund
-----------------------------------------------------------------------------
Class A Class B Class I
------------------------------- -------------------------------- --------
11/01/96 Year 12/20/94* 11/01/96 Year 03/28/95** 11/01/96
Through Ended Through Through Ended Through Through
04/30/97 10/31/96 10/31/95 04/30/97 10/31/96 10/31/95 04/30/97
-------- -------- --------- -------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period....... $ 19.19 $ 15.07 $ 10.00 $ 19.00 $ 15.01 $ 11.39 $ 19.22
-------- ------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net Investment Income.................... (0.013) 0.005 0.060 (0.071) (0.074) (0.018) 0.002
Net Gains or (Losses) in Securities (both
realized and unrealized)................ (0.867) 4.328 5.056 (0.849) 4.248 3.669 (0.842)
-------- ------- ------- ------- ------- ------- -------
Total from Investment Operations......... (0.88) 4.333 5.116 (0.920) 4.174 3.651 (0.840)
-------- ------- ------- ------- ------- ------- -------
Less Distributions:
Dividends from Net Investment Income..... -- 0.033 0.042 -- -- 0.027 --
Distributions from Capital Gains......... 0.290 0.180 0.004 0.290 0.180 0.004 0.290
-------- ------- ------- ------- ------- ------- -------
Total Distributions...................... 0.290 0.213 0.046 0.290 0.180 0.031 0.290
-------- ------- ------- ------- ------- ------- -------
Net Asset Value, End of Period............. $ 18.02 $ 19.19 $ 15.07 $ 17.79 $ 19.00 $ 15.01 $ 18.09
======== ======= ======= ======= ======= ======= =======
Total Return (1)........................... (4.73%) 29.06% 51.25% (4.99%) 28.04% 32.09% (4.52%)
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted)... $143,369 $144,763 $43,739 $77,717 $72,722 $ 21,624 $226,075
Ratio of Expenses to Average Net Assets
#........................................ 1.46% 1.50% 1.51% 2.17% 2.22% 2.24% 1.10%
Ratio of Net Investment Income to Average
Net Assets #............................. (0.13%) 0.03% 0.52% (0.84%) (0.68%) (0.25%) 0.29%
Ratio of Expenses Without Waivers and
Assumption of Expenses to Average Net
Assets #................................. 1.46% 1.52% 2.67% 2.17% 2.25% 3.23% 1.16%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses #.... (0.13%) 0.01% (0.64%) (0.84%) (0.71%) (1.24%) 0.23%
Portfolio Turnover Rate.................... 25% 78% 75% 25% 78% 75% 25%
Average Commission Rate Paid per share..... $0.0599 $0.0595 -- $0.0599 $0.0595 -- $0.0599
<CAPTION>
Vista Equity Income Fund
-----------------------------------------------------
Class A
-----------------------------------------------------
05/07/96** 11/01/96 Year Ended 07/15/92*
Through Through ------------------------------ Through
10/31/96 04/30/97 10/31/96 10/31/95 10/31/94 10/31/93
---------- -------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period....... $ 18.44 $ 15.98 $ 13.39 $ 12.12 $ 13.84 $ 13.14
------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net Investment Income.................... 0.023 0.118 0.348 0.347 0.290 0.078
Net Gains or (Losses) in Securities (both
realized and unrealized)................ 0.757 1.820 3.434 1.698 (0.477) 0.700
------- ------- ------- ------- ------- -------
Total from Investment Operations......... 0.780 1.938 3.782 2.045 (0.187) 0.778
------- ------- ------- ------- ------- -------
Less Distributions:
Dividends from Net Investment Income..... -- 0.127 0.329 0.366 0.258 0.078
Distributions from Capital Gains......... -- 1.490 0.863 0.410 1.275 --
------- ------- ------- ------- ------- -------
Total Distributions...................... -- 1.617 1.192 0.776 1.533 0.078
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period............. $ 19.22 $ 16.30 $ 15.98 $ 13.39 $ 12.12 $ 13.84
======= ======= ======= ======= ======= =======
Total Return (1)........................... 4.23% 12.74% 29.79% 17.97% (1.35%) 5.91%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted)... $ 51,542 $26,737 $17,493 $11,737 $11,409 $15,321
Ratio of Expenses to Average Net Assets
#........................................ 1.10% 1.50% 1.50% 1.50% 1.50% 1.50%
Ratio of Net Investment Income to Average
Net Assets #............................. 0.27% 1.55% 2.41% 2.81% 2.31% 1.72%
Ratio of Expenses Without Waivers and
Assumption of Expenses to Average Net
Assets #................................. 1.27% 1.88% 2.32% 2.19% 2.02% 2.40%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses #.... 0.10% 1.17% 1.59% 2.12% 1.79% 0.82%
Portfolio Turnover Rate.................... 78% 35% 114% 91% 75% 54%
Average Commission Rate Paid per share..... $ 0.0595 $0.0596 $0.0587 -- -- --
</TABLE>
- ---------------
* Commencement of operations.
** Commencement of offering of class of shares.
# Short periods have been annualized.
(1) Total return figures do not include the effect of any sales load.
See notes to financial statements.
66
<PAGE> 160
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 Equity
Income Fund Vista Large Cap Equity Fund*
----------------------- ---------------------------------------------------
Class B Class A Class B
----------------------- ----------------------- -----------------------
11/01/96 05/07/96** 11/01/96 05/08/96** 11/01/96 05/07/96**
Through Through Through Through Through Through
04/30/97 10/31/96 04/30/97 10/31/96 04/30/97 10/31/96
-------- ---------- -------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period..... $ 15.92 $ 14.56 $ 13.25 $ 12.06 $ 13.22 $ 12.06
------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net Investment Income................. 0.117 0.134 0.050 0.050 0.051 0.050
Net Gains or (Losses) in Securities
(both realized and unrealized)....... 1.753 1.376 1.290 1.209 1.260 1.187
------- ------- ------- ------- ------- -------
Total from Investment Operations...... 1.870 1.510 1.340 1.259 1.311 1.237
------- ------- ------- ------- ------- -------
Less Distributions:
Dividends from Net Investment
Income............................... 0.110 0.151 0.041 0.069 0.038 0.077
Distributions from Capital Gains...... 1.490 -- 1.890 -- 1.890 --
------- ------- ------- ------- ------- -------
Total Distributions................... 1.600 0.151 1.931 0.069 1.928 0.077
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period........... $ 16.19 $ 15.92 $ 12.66 $ 13.25 $ 12.60 $ 13.22
======= ======= ======= ======= ======= =======
Total Return(1).......................... 12.34% 10.43% 11.16% 10.84% 10.93% 6.66%
Ratios/Supplemental Data:
Net Assets, End of Period (000
omitted).............................. $ 7,423 $ 560 $12,946 $ 8,349 $ 3,253 $ 305
Ratio of Expenses to Average Net Assets
#..................................... 2.25% 2.25% 1.27% 1.38% 1.71% 1.88%
Ratio of Net Investment Income to
Average Net Assets #.................. 0.80% 1.75% 0.65% 0.84% 0.18% 0.14%
Ratio of Expenses Without Waivers and
Assumption of Expenses to Average Net
Assets #.............................. 2.33% 2.75% 1.77% 1.87% 2.21% 2.38%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses
#..................................... 0.72% 1.25% 0.15% 0.35% (0.32%) (0.36%)
Portfolio Turnover Rate.................. 35% 114% 30% 89% 30% 89%
Average Commission Rate Paid per share... $0.0596 $ 0.0587 $0.0599 $ 0.0598 $0.0599 $ 0.0598
<CAPTION>
Institutional Class
----------------------------------------------------------------------------
11/01/96 Year Ended 07/01/92(2)
Through ----------------------------------------------- Through
04/30/97 10/31/96 10/31/95 10/31/94 10/31/93 10/31/92
-------- -------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period..... $ 13.27 $ 12.24 $ 13.16 $ 13.65 $ 12.56 $ 12.50
------- ------- ------- -------- --------
Income from Investment Operations:
Net Investment Income................. 0.091 0.227 0.277 0.298 0.302 0.080
Net Gains or (Losses) in Securities
(both realized and unrealized)....... 1.300 2.597 1.744 0.263 1.153 0.500
------- ------- ------- -------- --------
Total from Investment Operations...... 1.391 2.824 2.021 0.561 1.455 0.580
------- ------- ------- -------- --------
Less Distributions:
Dividends from Net Investment
Income............................... 0.091 0.224 0.282 0.290 0.304 0.140
Distributions from Capital Gains...... 1.890 1.570 2.659 0.761 0.062 0.380
------- ------- ------- -------- --------
Total Distributions................... 1.981 1.794 2.941 1.051 0.366 0.520
------- ------- ------- -------- --------
Net Asset Value, End of Period........... $ 12.68 $ 13.27 $ 12.24 $ 13.16 $ 13.65 $ 12.56
======= ======= ======= ======== ========
Total Return(1).......................... 11.58% 25.65% 20.41% 4.37% 11.73% 4.78%
Ratios/Supplemental Data:
Net Assets, End of Period (000
omitted).............................. $94,340 $99,025 $55,417 $67,818 $120,635 $ 106,088
Ratio of Expenses to Average Net Assets
#..................................... 0.50% 0.40% 0.31% 0.31% 0.31% 0.30%
Ratio of Net Investment Income to
Average Net Assets #.................. 1.40% 1.86% 2.41% 2.30% 2.30% 1.96%
Ratio of Expenses Without Waivers and
Assumption of Expenses to Average Net
Assets #.............................. 1.00% 0.96% 0.90% 0.95% 0.88% 0.80%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses
#..................................... 0.90% 1.30% 1.82% 1.66% 1.73% 1.46%
Portfolio Turnover Rate.................. 30% 89% 45% 53% 33% 5%
Average Commission Rate Paid per share... $0.0599 $0.0598 -- -- -- --
</TABLE>
- ---------------
* Formerly Vista Equity Fund.
** Commencement of offering of class of shares.
# Short periods have been annualized.
(1) Total returns figures do not include the effect of any sales load.
(2) In 1992, the Fund's fiscal year-end was changed from June 30 to October 31.
See notes to financial statements.
67
<PAGE> 161
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 Balanced Fund
-----------------------------------------------
Vista American Value Fund Class A
------------------------------------- -----------------------------------------------
11/01/96 12/01/95## 02/03/95* 11/01/96 Year Ended
Through Through Through Through ----------------------------------
04/30/97 10/31/96 11/30/95 04/30/97 10/31/96 10/31/95 10/31/94
-------- ---------- --------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period..... $ 13.49 $ 12.11 $ 10.00 $ 13.83 $ 12.45 $ 11.09 $ 11.38
------- ------- ------ ------- ------- ------- -------
Income from Investment Operations:
Net Investment Income................. 0.135 0.152 0.180 0.197 0.353 0.382 0.356
Net Gains or (Losses) in Securities
(both realized and unrealized)....... 0.675 1.694 2.000 0.653 1.692 1.517 (0.187)
------- ------- ------ ------- ------- ------- -------
Total from Investment Operations...... 0.810 1.846 2.180 0.850 2.045 1.899 0.169
------- ------- ------ ------- ------- ------- -------
Less Distributions:
Dividends from Net Investment
Income............................... 0.100 0.196 0.070 0.190 0.345 0.408 0.359
Distributions from Capital Gains...... 0.520 0.270 -- 0.810 0.320 0.131 0.100
------- ------- ------ ------- ------- ------- -------
Total Distributions................... 0.620 0.466 0.070 1.000 0.665 0.539 0.459
------- ------- ------ ------- ------- ------- -------
Net Asset Value, End of Period........... $ 13.68 $ 13.49 $ 12.11 $ 13.68 $ 13.83 $ 12.45 $ 11.09
======= ======= ====== ======= ======= ======= =======
Total Return (1)......................... 6.08% 15.76% 21.80% 6.38% 16.89% 17.70% 1.56%
Ratios/Supplemental Data:
Net Assets, End of Period (000
omitted).............................. $ 9,919 $ 9,609 $ 8,399 $66,588 $55,233 $33,733 $21,705
Ratio of Expenses to Average Net Assets
#..................................... 1.32% 1.37% 1.23% 1.25% 1.25% 1.06% 0.58%
Ratio of Net Investment Income to
Average Net Assets #.................. 1.97% 1.38% 1.97% 2.99% 2.97% 3.48% 3.21%
Ratio of Expenses Without Waivers and
Assumption of Expenses to Average Net
Assets #.............................. 2.55% 2.52% 2.03% 1.55% 1.78% 2.20% 2.20%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses
#..................................... 0.74% 0.23% 1.17% 2.69% 2.44% 2.34% 1.59%
Portfolio Turnover Rate.................. 20% 25% 11% 96% 149% 68% 77%
Average Commission Rate Paid per share... $0.0787 $ 0.0793 -- $0.0600 $0.0598 -- --
<CAPTION>
Class B
-------------------------------------------------
11/04/92* 11/01/97 Year Ended 11/04/93**
Through Through --------------------- Through
10/31/93 04/30/97 10/31/96 10/31/95 10/31/94
-------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period..... $ 10.00 $ 13.70 $ 12.36 $11.03 $11.22
------- ------- ------- ------- -------
Income from Investment Operations:
Net Investment Income................. 0.410 0.152 0.283 0.309 0.345
Net Gains or (Losses) in Securities
(both realized and unrealized)....... 1.344 0.643 1.656 1.502 (0.117)
------- ------- ------- ------- -------
Total from Investment Operations...... 1.754 0.795 1.939 1.811 0.228
------- ------- ------- ------- -------
Less Distributions:
Dividends from Net Investment
Income............................... 0.375 0.155 0.279 0.131 0.318
Distributions from Capital Gains...... -- 0.810 0.320 0.350 0.100
------- ------- ------- ------- -------
Total Distributions................... 0.375 0.965 0.599 0.481 0.418
------- ------- ------- ------- -------
Net Asset Value, End of Period........... $ 11.38 $ 13.53 $ 13.70 $12.36 $11.03
======= ======= ======= ======= =======
Total Return (1)......................... 17.74% 6.01% 16.10% 16.93% 2.17%
Ratios/Supplemental Data:
Net Assets, End of Period (000
omitted).............................. $13,920 $11,571 $ 9,737 $6,336 $3,543
Ratio of Expenses to Average Net Assets
#..................................... -- 2.00% 2.00% 1.82% 1.50%
Ratio of Net Investment Income to
Average Net Assets #.................. 3.87% 2.24% 2.21% 2.68% 2.46%
Ratio of Expenses Without Waivers and
Assumption of Expenses to Average Net
Assets #.............................. 3.07% 2.05% 2.29% 2.72% 2.69%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses
#..................................... 0.80% 2.19% 1.92% 1.78% 1.27%
Portfolio Turnover Rate.................. 65% 96% 149% 68% 77%
Average Commission Rate Paid per share... -- $0.0600 $0.0598 -- --
</TABLE>
- ---------------
* Commencement of operations.
** Commencement of offering of class of shares.
# Short periods have been annualized.
(1) Total return figures do not include the effect of any sales load.
## In 1996, the Fund changed its fiscal year end from November 30 to
October 31.
See notes to financial statements.
68
<PAGE> 162
GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- 92.1%
------------------------------------------------------------------------------------
COMMON STOCK -- 85.6%
-------------------------------------------------------
AEROSPACE -- 1.2%
175,000 Allied-Signal, Inc. $ 12,643,750
220,000 United Technologies, Corp. 16,637,500
--------------
29,281,250
--------------
AGRICULTURAL PRODUCTION/SERVICES -- 2.3%
350,000 AGCO Corp. 9,056,250
450,000 Case Corp. 24,918,750
440,000 Deere & Co. 20,240,000
--------------
54,215,000
--------------
AIRLINES -- 1.1%
275,001 AMR Corp. * 25,609,468
--------------
AUTOMOTIVE -- 0.9%
225,000 General Motors 13,021,875
250,000 Lear Corp. * 8,937,500
--------------
21,959,375
--------------
BANKING -- 5.1%
145,000 BankAmerica Corp. 16,946,875
100,000 Citicorp 11,262,500
225,000 Comerica, Inc. 13,162,500
290,000 First Union Corp. 24,360,000
170,000 Mellon Bank Corp. 14,131,250
400,000 NationsBank Corp. 24,150,000
350,000 Norwest Corp. 17,456,250
--------------
121,469,375
--------------
BIOTECHNOLOGY -- 0.5%
200,000 Amgen, Inc. * 11,775,000
--------------
BROADCASTING -- 0.3%
500,000 Tele-Communications, TCI Group, Class A * 6,906,250
--------------
BUSINESS SERVICES -- 0.4%
275,000 Ceridian Corp. * 9,178,125
--------------
CHEMICALS -- 2.6%
230,000 Dow Chemical Co. 19,521,250
245,000 duPont (EI) deNemours 26,000,625
330,000 Union Carbide Corp. 16,458,750
--------------
61,980,625
--------------
</TABLE>
See notes to financial statements.
69
<PAGE> 163
GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
COMPUTER SOFTWARE -- 2.8%
600,000 Cisco Systems, Inc. * $ 31,050,000
550,000 Computer Associates International 28,600,000
300,000 Reynolds & Reynolds, Inc., Class A 6,225,000
--------------
65,875,000
--------------
COMPUTERS/COMPUTER HARDWARE -- 5.4%
255,000 Compaq Computer Corp. * 21,770,625
650,000 EMC Corp. * 23,643,750
119,000 International Business Machines Corp. 19,129,250
300,000 Seagate Technology, Inc. * 13,762,500
280,000 Storage Technology Corp. * 9,835,000
550,000 Sun Microsystems, Inc. * 15,846,875
275,000 Texas Instruments 24,543,750
--------------
128,531,750
--------------
CONSTRUCTION MACHINERY -- 0.6%
160,000 Caterpillar Tractor, Inc. 14,240,000
--------------
CONSUMER PRODUCTS -- 5.2%
425,000 Avon Products, Inc. * 26,190,625
400,000 Black & Decker Corp. 13,400,000
100,000 Colgate-Palmolive Co. 11,100,000
385,000 Fruit of the Loom, Inc., Class A, * 13,860,000
300,000 Liz Claiborne, Inc. 13,575,000
675,000 Philip Morris Companies, Inc. 26,578,125
150,000 Procter & Gamble Co. 18,862,500
--------------
123,566,250
--------------
DIVERSIFIED -- 0.5%
300,000 American Standard Companies, Inc. * 12,562,500
--------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 1.2%
190,000 Intel Corp. 29,093,750
--------------
ENTERTAINMENT/LEISURE -- 1.3%
840,000 Carnival Corp., Class A 30,975,000
--------------
FINANCIAL SERVICES -- 3.8%
470,100 Countrywide Credit Industries, Inc. 12,751,463
400,000 Federal Home Loan Mortgage Corp. 12,750,000
250,000 Federal National Mortgage Assoc. 10,281,250
400,000 Green Tree Financial Corp. 11,850,001
350,000 Lehman Brothers Holding, Inc. 11,856,250
</TABLE>
See notes to financial statements.
70
<PAGE> 164
GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
FINANCIAL SERVICES -- (continued)
200,000 The PMI Group, Inc. $ 10,225,000
400,000 Washington Mutual Inc. 19,750,000
--------------
89,463,964
--------------
FOOD/BEVERAGE PRODUCTS -- 3.8%
400,000 Coca-Cola Enterprises, Inc. 24,150,000
525,000 ConAgra, Inc. 30,253,125
600,000 PepsiCo., Inc. 20,925,000
80,000 Unilever NV, ADR (Netherlands) 15,700,000
--------------
91,028,125
--------------
HEALTH CARE/HEALTH CARE SERVICES -- 3.2%
701,000 Columbia/HCA Healthcare Corp. 24,535,000
200,000 Guidant Corp. 13,650,000
1,220,000 HEALTHSOUTH Corp. * 24,095,000
500,000 Tenet Healthcare Corp. * 13,000,000
--------------
75,280,000
--------------
INSURANCE -- 4.2%
150,000 Aetna Inc. 13,668,750
400,000 Allstate Corp. 26,200,000
110,500 American International Group 14,199,250
155,000 Loews Corp. 14,240,625
170,000 Progressive Corp. 12,941,250
140,000 Reliastar Financial Corp. 8,470,000
200,000 Travelers, Inc. 11,075,000
--------------
100,794,875
--------------
MANUFACTURING -- 3.9%
300,000 Ingersoll-Rand Co. 14,737,500
490,000 Johnson Controls 18,803,750
340,000 Kennametal Inc. 12,240,000
300,000 Parker Hannifin Corp. 14,925,000
515,000 Tyco International Ltd. 31,415,000
--------------
92,121,250
--------------
METALS/MINING -- 1.9%
450,000 Aluminum Co. of America (ALCOA) 31,443,750
450,000 Inco, Ltd. 14,400,000
--------------
45,843,750
--------------
OFFICE/BUSINESS EQUIPMENT -- 0.8%
310,000 Xerox Corp. 19,065,000
--------------
</TABLE>
See notes to financial statements.
71
<PAGE> 165
GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
OIL & GAS -- 8.5%
165,000 Amoco Corp. $ 13,798,125
125,000 British Petroleum PLC, ADR (United Kingdom) 17,203,125
300,000 Coastal Corp. 14,250,000
255,000 Elf Aquitaine SA, ADR (France) 12,399,375
300,000 Halliburton Company 21,187,500
210,000 Mobil Corp. 27,300,000
32,000 Murphy Oil Corp. 1,392,000
400,000 PanEnergy Corp. 17,700,000
355,000 Phillips Petroleum Co. 13,978,125
210,000 Texaco, Inc. 22,155,000
300,000 Tidewater, Inc. 12,037,500
662,500 Williams Companies, Inc. 29,067,188
--------------
202,467,938
--------------
PAPER/FOREST PRODUCTS -- 0.7%
9,142 Deltic Timber Corp. 231,978
240,000 Willamette Industries, Inc. 15,300,000
--------------
15,531,978
--------------
PHARMACEUTICALS -- 4.6%
225,000 American Home Products Corp. 14,906,250
320,000 Bristol-Myers Squibb Co. 20,960,000
330,000 Johnson & Johnson 20,212,500
240,000 Schering-Plough Corp. 19,200,000
425,000 SmithKline Beecham PLC, ADR (United Kingdom) 34,265,625
--------------
109,544,375
--------------
PHOTOGRAPHIC EQUIPMENT -- 0.9%
250,000 Eastman Kodak Co. 20,875,000
--------------
PRINTING & PUBLISHING -- 1.0%
560,000 New York Times Company, Class A 24,220,000
--------------
REAL ESTATE INVESTMENT TRUST -- 2.0%
345,000 Beacon Properties Corp. 10,651,875
140,000 Cali Realty Corp. 4,130,000
177,000 Duke Realty Investments, Inc. 6,504,750
230,000 Equity Residential Properties Trust 10,062,500
310,000 Security Capital Industrial Trust 6,238,750
720,000 Security Capital US Realty, (Luxembourg) ADR * 10,728,000
--------------
48,315,875
--------------
</TABLE>
See notes to financial statements.
72
<PAGE> 166
GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
RETAILING -- 4.9%
320,000 American Stores Co. $ 14,560,000
300,000 CVS Corp. 14,887,500
450,000 Dayton-Hudson Corp. 20,250,000
525,000 Federated Department Stores * 17,850,000
500,000 Gap, Inc. 15,937,500
1,155,000 Kroger Co. * 31,762,500
--------------
115,247,500
--------------
SHIPPING/TRANSPORTATION -- 1.3%
235,000 Burlington Northern, Inc. 18,506,250
230,000 Federal Express Corp. * 12,391,250
--------------
30,897,500
--------------
STEEL -- 0.4%
385,000 Allegheny Teledyne, Inc. 10,250,625
--------------
TELECOMMUNICATIONS -- 4.3%
650,000 BellSouth Corp. 28,925,000
375,000 Frontier Corp. 5,953,125
385,000 GTE Corp. 17,661,875
400,000 Sprint Corp. 17,550,000
475,000 Telefonaktiebolaget LM Ericsson, Sp, (Sweden) ADR 15,971,875
700,000 WorldCom, Inc. 16,800,000
--------------
102,861,875
--------------
TEXTILES -- 0.3%
250,000 Unifi, Inc. 7,750,000
--------------
UTILITIES -- 3.7%
500,000 Centrais Electricas Brasileiras S/A-Electrobras, 11,682,600
(Brazil) ADR
425,000 CINergy Corp. 14,131,250
250,000 Companhia Energetica de Minas Gerais (CEMIG), 11,377,100
(Brazil) ADR
505,000 FPL Group Inc. 22,535,625
350,000 GPU, Inc. 11,287,500
550,000 Pinnacle West Capital Corp. 15,675,000
--------------
86,689,075
--------------
TOTAL COMMON STOCK (COST $1,615,430,230) 2,035,467,423
--------------
CONVERTIBLE PREFERRED STOCK -- 3.5%
-------------------------------------------------------
AEROSPACE -- 0.2%
120,000 Loral Space & Communications, 6.00%, 11/01/06 Ser. 5,743,680
# --------------
</TABLE>
See notes to financial statements.
73
<PAGE> 167
GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
AIRLINES -- 0.3%
100,000 Continental Air Finance Trust, 8.50%, 12/01/20 $ 7,238,200
--------------
BROADCASTING -- 0.2%
100,000 American Radio Systems, 7.00% # 4,662,500
--------------
CONSUMER PRODUCTS -- 0.8%
700,000 RJR Nabisco Holdings Corp. $0.6012, Ser. C 4,112,500
960,000 Westinghouse Electric, $1.30 # 14,456,640
--------------
18,569,140
--------------
ENTERTAINMENT/LEISURE -- 0.2%
150,000 Time Warner Financing Trust, $1.24 5,550,000
--------------
FINANCIAL SERVICES -- 0.5%
100,000 Nuevo Financing Inc., 5.75%, Ser. A 4,562,500
112,500 Pacificare Holding, $1.00, Ser. C 3,515,625
91,000 SunAmerica Inc., $3.188, 10/31/99 Ser. 3,844,750
--------------
11,922,875
--------------
INSURANCE -- 0.2%
67,000 American Bankers Insurance Group, 6.25%, Ser. B 4,212,625
--------------
OIL & GAS -- 0.5%
80,000 Occidental Petroleum, $3.00 5,680,000
90,000 Ultramar Diamond Shamrock Corp., 5.00% 5,438,250
--------------
11,118,250
--------------
PAPER/FOREST PRODUCTS -- 0.3%
125,000 International Paper Capital Corp., 5.25% # 5,962,125
--------------
TELECOMMUNICATIONS -- 0.3%
75,000 Viacom International, 5.0%, 07/31/06 7,068,750
--------------
TOTAL CONVERTIBLE PREFERRED STOCK (COST $77,743,423) 82,048,145
--------------
PREFERRED STOCK -- 0.3%
-------------------------------------------------------
FINANCIAL SERVICES --
6,600,000 South African Pulp & Paper Industries, BVI Finance 6,105,000
Ltd., 7.5%, 08/01/02 (Cost $6,600,000) --------------
</TABLE>
See notes to financial statements.
74
<PAGE> 168
GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE NOTES & BONDS -- 1.7%
-------------------------------------------------------
COMPUTERS/COMPUTER HARDWARE -- 0.3%
$ 3,600,000 EMC Corp., 3.25%, 03/15/02 # $ 3,725,063
--------------
CONSUMER SERVICES -- 0.1%
3,000,000 CUC International Inc., 3.00%, 02/15/02 # 2,874,360
--------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 0.2%
3,850,000 SCI Systems Inc., 5.00%, 05/01/06 # 5,462,188
--------------
ENVIRONMENTAL SERVICES -- 0.1%
2,000,000 USA Waste Services Inc., 4.00%, 02/01/02 1,969,680
--------------
FINANCIAL SERVICES -- 0.2%
2,300,000 First Financial Management, 5.00%, 12/15/99 3,739,570
--------------
HOTELS/OTHER LODGING -- 0.2%
5,000,000 Hilton Hotels Corp., 5.00%, 05/15/06 5,209,700
--------------
PHARMACEUTICALS -- 0.2%
5,000,000 ICN Pharmaceutical, 8.50%, 11/15/99 5,525,000
--------------
RETAIL -- 0.2%
4,000,000 Federated Department Stores 4,640,760
--------------
UTILITIES -- 0.2%
86,000 Calenergy Capital Trust II, 6.25%, 02/25/12 # 4,606,848
--------------
TOTAL CONVERTIBLE CORPORATE NOTES & BONDS (COST 37,753,169
$32,962,000) --------------
CORPORATE NOTES & BONDS -- 1.0%
-------------------------------------------------------
AUTOMOTIVE -- 0.2%
4,500,000 Magna International Inc., 5.00%, 10/15/02 4,936,995
--------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 0.4%
7,000,000 Xilinx Inc., 5.25%, 11/01/02 8,004,080
--------------
FINANCIAL SERVICES -- 0.2%
3,000,000 Aames Financial Corp., 5.50% 03/15/06 2,650,950
2,000,000 UBS Finance of Delaware, 2.00% 12/15/00 1,998,340
--------------
4,649,290
--------------
</TABLE>
See notes to financial statements.
75
<PAGE> 169
GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
HEALTH CARE/HEALTH CARE SERVICES -- 0.2%
$ 4,000,000 Tenet Healthcare Corp. 6.00% 12/01/05 $ 4,927,520
--------------
TOTAL CORPORATE NOTES & BONDS (COST $21,115,000) 22,517,885
------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS 2,183,891,622
(COST $1,753,850,653)
------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 7.8%
------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 5.0%
-------------------------------------------------------
Discount Notes,
20,000,000 Federal Home Loan Mortgage Corp., 05/19/97 19,946,900
20,000,000 Federal Home Loan Mortgage Corp., 05/07/97 19,982,067
40,000,000 Federal Home Loan Mortgage Corp., 05/30/97 39,827,128
20,000,000 Federal National Mortgage Association, 05/09/97 19,976,089
20,000,000 Tennessee Valley Authority, 05/14/97 19,961,506
--------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST 119,693,690
$119,693,690) --------------
COMMERCIAL PAPER -- 2.8%
-------------------------------------------------------
20,000,000 Falcon Asset Securitization Corp., 05/30/97 19,910,583
27,545,000 Household Finance Corp., 05/01/97 27,545,000
20,000,000 Thames Asset Global Sec., 05/30/97 19,910,261
--------------
TOTAL COMMERCIAL PAPER (COST $67,365,844) 67,365,844
------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS 187,059,534
(COST $187,059,534)
====================================================================================
TOTAL INVESTMENTS -- 99.9% $2,370,951,156
(COST $1,940,680,587)
------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
76
<PAGE> 170
CAPITAL GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- 88.6%
------------------------------------------------------------------------------------
COMMON STOCK -- 87.5%
------------------------------------------------------
AEROSPACE -- 3.3%
412,500 Precision Castparts Corp. $ 22,068,750
325,000 Sundstrand Corp. 15,843,750
--------------
37,912,500
--------------
AGRICULTURAL PRODUCTION/SERVICES -- 1.7%
410,000 AGCO Corp. 10,608,750
153,500 Case Corp. 8,500,063
--------------
19,108,813
--------------
AIRLINES -- 1.7%
599,000 Continental Airlines, Inc., Class B * 19,018,250
--------------
AUTOMOTIVE -- 1.6%
350,000 Lear Corp. * 12,512,500
150,000 Tower Automotive, Inc. * 5,550,000
--------------
18,062,500
--------------
BANKING -- 2.6%
300,000 Southtrust Corp. 11,212,500
142,500 Zions Bancorporation 18,026,250
--------------
29,238,750
--------------
BROADCASTING -- 0.8%
500,000 Tele-Communications, Inc., Liberty Media Group, 9,406,250
Class A * --------------
BUSINESS SERVICES -- 4.7%
305,000 American Business Information, Inc. * 5,795,000
425,000 Equifax, Inc. 12,218,750
300,000 Fiserv, Inc. * 11,325,000
400,000 GTECH Holdings Corp. * 12,300,000
300,000 Interim Services, Inc. * 11,625,000
--------------
53,263,750
--------------
CHEMICALS -- 1.0%
200,000 Cabot Corp. 4,400,000
135,000 Cytec Industries, Inc. * 5,079,375
65,000 OM Group, Inc. 1,811,875
--------------
11,291,250
--------------
</TABLE>
See notes to financial statements.
77
<PAGE> 171
CAPITAL GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
COMPUTER SOFTWARE -- 3.2%
125,000 Adobe Systems, Inc. $ 4,890,625
884,000 American Management Systems, Inc. * 21,879,000
25,000 McAfee Associates, Inc * 1,387,500
250,000 Reynolds & Reynolds, Inc., Class A 5,187,500
495,000 Vanstar Corp. * 3,650,625
--------------
36,995,250
--------------
COMPUTERS/COMPUTER HARDWARE -- 4.4%
500,000 EMC Corp. * 18,187,500
99,000 Gateway 2000 Inc. * 5,432,625
99,000 SCI Systems, Inc. * 6,113,250
100,000 Seagate Technology, Inc. * 4,587,500
150,000 Solectron Corp. * 8,606,250
198,500 Storage Technology Corp. * 6,972,313
--------------
49,899,438
--------------
CONSUMER PRODUCTS -- 3.0%
550,000 First Brands Corp. 13,956,250
448,500 Fruit of the Loom, Inc., Class A * 16,146,000
100,000 Jones Apparel Group, Inc. * 4,175,000
--------------
34,277,250
--------------
DIVERSIFIED -- 1.6%
300,000 American Standard Companies, Inc. 12,562,500
150,000 Harnischfeger Industries, Inc. 6,243,750
--------------
18,806,250
--------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 4.5%
300,000 Adaptec, Inc. * 11,100,000
200,000 Atmel Corp. * 4,975,000
77,000 Harman International Industries, Inc. 2,945,250
150,000 Micron Electronics, Inc. * 3,056,250
119,000 Teleflex, Inc. 6,872,250
349,500 UCAR International, Inc. * 14,679,000
148,500 Xilinx, Inc. * 7,276,500
--------------
50,904,250
--------------
ENTERTAINMENT/LEISURE -- 3.4%
600,000 Carnival Corp., Class A 22,125,000
249,000 MGM Grand, Inc. * 8,403,750
400,000 Mirage Resorts, Inc. * 8,050,000
--------------
38,578,750
--------------
</TABLE>
See notes to financial statements.
78
<PAGE> 172
CAPITAL GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
ENVIRONMENTAL SERVICES -- 0.3%
115,000 U.S.A. Waste Services, Inc. * $ 3,766,250
--------------
FINANCIAL SERVICES -- 5.3%
400,000 Countrywide Credit Industries, Inc. 10,850,000
100,000 Finova Group, Inc. 6,862,500
125,000 First USA, Inc. 6,015,625
150,000 Green Tree Financial Corp. 4,443,750
390,000 Lehman Brothers Holding, Inc. 13,211,250
299,500 The PMI Group, Inc. 15,311,938
75,000 Washington Mutual, Inc 3,618,750
--------------
60,313,813
--------------
HEALTH CARE/HEALTH CARE SERVICES -- 11.3%
300,000 Beckman Instruments, Inc. 12,600,000
999,000 Beverly Enterprises* 14,485,500
98,500 HBO & Co. 5,269,750
259,500 Health Care & Retirement Corp. * 8,206,688
698,500 HEALTHSOUTH Corp. * 13,795,375
60,000 Lincare Holdings, Inc. * 2,355,000
340,000 PhyCor, Inc. 9,052,500
225,000 Sybron International Corp. * 7,481,250
1,240,000 Tenet Healthcare Corp. * 32,240,000
419,000 Universal Health Services, Inc., Class B * 15,869,625
200,000 US Surgical Corp. 6,850,000
--------------
128,205,688
--------------
HOME BUILDING CONSTRUCTION -- 0.4%
250,000 Oakwood Homes Corp. 5,062,500
--------------
INSURANCE -- 7.4%
125,000 ACE, Ltd. # 7,500,000
195,000 American Bankers Insurance Group, Inc. 10,310,625
200,000 Equitable of Iowa Companies 9,775,000
100,000 MGIC Investment Corp. 8,125,000
150,000 Progressive Corp. 11,418,750
440,200 Reliance Group Holdings, Inc. 4,897,225
200,000 Reliastar Financial Corp. 12,100,000
199,500 SunAmerica, Inc. 9,177,000
130,000 Transatlantic Holdings, Inc. 10,757,500
--------------
84,061,100
--------------
</TABLE>
See notes to financial statements.
79
<PAGE> 173
CAPITAL GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
MANUFACTURING -- 3.7%
270,000 Johnson Controls $ 10,361,250
310,000 Kennametal Inc. 11,160,000
165,375 Mark IV Industries 3,844,969
150,000 Parker Hannifin Corp. 7,462,500
297,500 Pentair, Inc. 8,887,813
--------------
41,716,532
--------------
MEDIA/ADVERTISING -- 0.9%
200,000 Omnicom Group, Inc. 10,600,000
--------------
METALS/MINING -- 0.3%
150,000 Trinity Industries, Inc. 3,937,500
--------------
OFFICE SUPPLIES -- 1.0%
300,000 Avery Dennison Corp. 11,025,000
--------------
OIL & GAS -- 2.8%
154,000 NGC Corp. 2,714,250
600,000 Noble Drilling Corp. * 10,425,005
200,000 Nuevo Energy Co. * 6,875,000
298,500 Tidewater, Inc. 11,977,313
--------------
31,991,568
--------------
PAPER/FOREST PRODUCTS -- 0.6%
200,000 Boise Cascade Corp. 6,650,000
--------------
PHARMACEUTICALS -- 0.5%
150,000 Watson Pharmaceuticals, Inc. * 5,325,000
--------------
PIPELINES -- 1.4%
249,500 Columbia Gas System, Inc. 15,437,813
--------------
REAL ESTATE INVESTMENT TRUST -- 3.3%
280,000 Beacon Properties Corp. 8,645,000
200,000 Equity Residential Properties Trust 8,750,000
275,000 FelCor Suite Hotels, Inc. 9,865,625
222,400 Home Properties of New York, Inc. 4,559,200
400,000 Security Capital US Realty, (Luxembourg) ADR* 5,960,000
--------------
37,779,825
--------------
</TABLE>
See notes to financial statements.
80
<PAGE> 174
CAPITAL GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
RETAILING -- 2.6%
220,000 CVS Corp. $ 10,905,000
250,000 F.W. Woolworth Corp. CK * 5,375,000
300,000 Kroger Co. * 8,250,000
150,000 Proffitt's, Inc. * 5,606,250
--------------
30,136,250
--------------
SHIPBUILDING -- 0.1%
52,200 Halter Marine Group, Inc. * 1,024,425
--------------
STEEL -- 0.7%
521,200 Birmingham Steel Corp. 7,622,550
--------------
TELECOMMUNICATIONS -- 2.1%
900,000 Aspect Telecommunications Corp. * 16,356,700
300,000 Nextel Communications Inc, Class A * 3,956,250
247,500 Octel Communications Corp. * 4,021,875
--------------
24,334,825
--------------
TEXTILES -- 2.0%
124,500 Liz Claiborne, Inc. 5,633,625
550,000 Unifi, Inc. 17,050,000
--------------
22,683,625
--------------
UTILITIES -- 3.3%
397,500 American Power Conversion Corp. * 7,651,875
350,000 Calenergy Co., Inc. * 13,693,750
89,000 Cia Energetica de Sao Paulo, ADR (Brazil) 1,418,331
200,000 CINergy Corp. 6,650,000
300,000 Pinnacle West Capital Corp. 8,550,000
--------------
37,963,956
--------------
TOTAL COMMON STOCK (COST $852,529,487) 996,401,471
--------------
CONVERTIBLE PREFERRED STOCK -- 0.2%
------------------------------------------------------
BROADCASTING -- 0.2%
60,000 American Radio Systems, 7.00% # (Cost $3,000,000) 2,797,500
--------------
</TABLE>
See notes to financial statements.
81
<PAGE> 175
CAPITAL GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS April 30, 1997 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
<C> <S> <C>
LONG-TERM INVESTMENTS -- (CONTINUED)
------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE NOTES & BONDS -- 0.3%
------------------------------------------------------
PHARMACEUTICAL -- 0.3%
$ 3,000,000 ICN Pharmaceutical, 8.5%, 11/15/99 (Cost $ 3,315,000
$3,000,000) --------------
CORPORATE NOTES & BONDS -- 0.5%
------------------------------------------------------
ELECTRONICS/ELECTRICAL EQUIPMENT -- 0.5%
5,000,000 Xilinx Inc., 5.25%, 11/01/02 (Cost $5,000,000) 5,717,200
--------------
U.S. TREASURY OBLIGATION -- 0.1%
------------------------------------------------------
565,000 U.S. Treasury Note, 6.875%, 5/15/06 (Cost $570,385) 569,413
------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS 1,008,800,584
(COST $864,099,872)
------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 12.3%
------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATION -- 7.0%
------------------------------------------------------
Discount Notes --
20,000,000 Federal Home Loan Bank, 05/27/97 19,923,156
20,000,000 Federal Home Loan Bank, 05/30/97 19,914,289
20,000,000 Federal National Mortgage Association, 05/09/97 19,976,133
20,000,000 Federal National Mortgage Association 05/21/97 19,942,222
--------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 79,755,800
(COST $79,755,800) --------------
COMMERCIAL PAPER -- 5.3%
------------------------------------------------------
20,000,000 Falcon Asset Securitization Corp., 05/30/97 19,910,583
40,523,000 Household Finance Corp., 05/01/97 40,523,000
--------------
(COST $60,433,583) 60,433,583
------------------------------------------------------------------------------------
179,770,275 TOTAL SHORT-TERM INVESTMENTS 140,189,383
(COST $140,189,383)
====================================================================================
TOTAL INVESTMENTS -- 100.9% $1,148,989,967
(COST $1,004,289,255)
------------------------------------------------------------------------------------
# = Security may only be sold to qualified institutional buyers.
* = Non income producing security.
ACES = Automatic Common Exchange Securities.
ADR = American Depositary Receipt.
</TABLE>
See notes to financial statements.
82
<PAGE> 176
STATEMENT OF ASSETS AND LIABILITIES April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth & Capital
Income Growth
Portfolio Portfolio
-------------- --------------
<S> <C> <C>
ASSETS:
Investment securities, at value (Note 1)........................ $2,370,951,156 $1,148,989,967
Cash............................................................ 185,351 92,630
Receivables:
Investment securities sold.................................... 18,249,920 7,048,491
Interest and dividends........................................ 4,293,307 694,994
Other assets.................................................... 103,657 84,506
-------------- --------------
Total Assets.............................................. 2,393,783,391 1,156,910,588
-------------- --------------
LIABILITIES:
Payable for investment securities purchased..................... 13,500,630 18,062,196
Accrued liabilities: (Note 2)
Administration fees............................................. 94,723 46,034
Investment advisory fees...................................... 756,782 368,267
Custodian..................................................... 38,210 25,419
Other......................................................... 165,666 142,917
-------------- --------------
Total Liabilities......................................... 14,556,011 18,644,833
-------------- --------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS......... $2,379,227,380 $1,138,265,755
Cost of Investments.............................................. $1,940,680,587 $1,004,289,255
============== ==============
</TABLE>
See notes to financial statements.
83
<PAGE> 177
STATEMENT OF OPERATIONS
For the six months ended April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth & Capital
Income Growth
Portfolio Portfolio
------------- -------------
<S> <C> <C>
INVESTMENT INCOME:
Dividend............................................................ $ 19,379,782 $ 6,429,296
Interest............................................................ 5,104,694 2,772,853
------------ ------------
Total investment income....................................... 24,484,476 9,202,149
------------ ------------
EXPENSES: (Note 2)
Investment Advisory fees............................................ 4,559,163 2,358,245
Administration fees................................................. 569,895 294,781
Custodian fees...................................................... 83,604 53,207
Amortization of organization costs (Note 1)......................... 3,962 3,962
Professional fees................................................... 42,027 42,027
Trustees fees and expenses.......................................... 22,796 11,791
Other............................................................... 75,569 65,881
------------ ------------
Total expenses................................................ 5,357,016 2,829,894
------------ ------------
Net investment income............................................. 19,127,460 6,372,255
------------ ------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain (loss) on:
Investments....................................................... 156,531,502 85,494,781
Change in net unrealized appreciation/depreciation on:
Investments....................................................... 51,491,981 (32,681,818)
------------ ------------
Net realized and unrealized gain (loss) on investments.............. 208,023,483 52,812,963
------------ ------------
Net increase in net assets from operations.......................... $ 227,150,943 $ 59,185,218
============ ============
</TABLE>
See notes to financial statements.
84
<PAGE> 178
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth & Capital
Income Growth
Portfolio Portfolio
---------------------------------- -----------------------------------
11/01/96 Year 11/01/96 Year
Through Ended Through Ended
04/30/97 10/31/96 04/30/97 10/31/96
--------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income............................... $ 19,127,460 $ 46,623,872 $ 6,372,255 $ 12,451,547
Net realized gain (loss) on investments and futures
transactions...................................... 156,531,502 163,677,802 85,494,781 132,963,967
Change in net unrealized appreciation/depreciation
on investments and futures........................ 51,491,981 163,237,283 (32,681,818) 71,608,504
-------------- -------------- --------------- ---------------
Increase (decrease) in net assets from operations... 227,150,943 373,538,957 59,185,218 217,024,018
-------------- -------------- --------------- ---------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Contributions....................................... 605,163,112 470,616,913 631,520,095 1,114,082,444
Withdrawals......................................... (545,434,616) (605,973,572) (642,571,891) (1,260,399,848)
-------------- -------------- --------------- ---------------
Net increase (decrease) from transactions in
investors' beneficial interests................... 59,728,496 (135,356,659) (11,051,796) (146,317,404)
-------------- -------------- --------------- ---------------
Net increase (decrease) in net assets......... 286,879,439 238,182,298 48,133,422 70,706,614
NET ASSETS:
Beginning of period................................. 2,092,347,941 1,854,165,643 1,090,132,333 1,019,425,719
-------------- -------------- --------------- ---------------
End of period....................................... $ 2,379,227,380 $ 2,092,347,941 $ 1,138,265,755 $ 1,090,132,333
============== ============== =============== ===============
</TABLE>
See notes to financial statements.
85
<PAGE> 179
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES -- Growth and Income
Portfolio ("GIP") and Capital Growth Portfolio ("CGP"), (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 GIP and
the CGP commenced operations on November 29, 1993.
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 Portfolios' 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. 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 GIP 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 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, 1997, the Portfolios had no outstanding futures contracts.
D. 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 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).
86
<PAGE> 180
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
The GIP 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, 1997 the Portfolios had no outstanding written options.
E. Security transactions and investment income -- Investment transactions
are accounted for on the trade date (the date the order to buy or sell is
executed). Securities gains and losses are calculated on the identified cost
basis. Interest income is accrued as earned. Dividend income is recorded on
the ex-dividend date.
F. Organization costs -- Organization and initial registration costs
incurred in connection with establishing the Portfolios 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 Portfolio.
G. Federal income taxes -- The Portfolios intend to continue to qualify as
partnerships and therefore net income and net realized gains are taxed to
the partners. Accordingly, no tax provisions are recorded by the Portfolios.
The investors in the Portfolios must take into account their proportionate
share of the Portfolios' income, gains, losses, deductions, credits and tax
preference items in computing their federal income tax liability, without
regard to whether they have received any cash distributions from the
Portfolio. The Portfolios do not intend to distribute to investors their net
investment income or their net realized gains, if any. It is intended that
the Portfolios will be managed in such a way that investors in the portfolio
will be able to satisfy the requirements of subchapter M of the Internal
Revenue Code to be taxed as regulated investment companies.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A. Investment advisory fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank ("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 0.40%
of the Portfolios' average daily net assets.
Chase Asset Management, Inc. ("CAM"), a registered investment adviser, is
the sub-investment adviser to each of the Portfolios pursuant to a
Sub-Investment Advisory Agreement between CAM and Chase. CAM is a wholly
owned subsidiary of Chase and is entitled to receive a fee, payable by Chase
from its advisory fee, at an annual rate equal to 0.20% of each Portfolio's
average daily net assets.
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 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.
87
<PAGE> 181
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS April 30, 1997 (unaudited) (continued)
- --------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS -- For the period ended April 30, 1997, purchases
and sales of investments (excluding short-term investments) were as follows:
<TABLE>
<CAPTION>
GIP CGP
------------- -------------
<S> <C> <C>
Purchases (excluding U.S. Government)................. $ 669,083,738 $ 382,031,565
Sales (excluding U.S. Government)..................... 443,147,228 366,932,401
Purchases of U.S. Government.......................... -- --
Sales of U.S. Government.............................. 58,099,444 --
</TABLE>
The portfolio turnover rates of GIP and CGP for the year end ended were 21% and
34%, respectively. The average commission rates paid per share were $.05958 and
$.05904 for GIP and CGP, respectively.
4. RETIREMENT PLAN -- The Portfolios have adopted an unfunded noncontributory
defined benefit pension plan covering all independent trustees of the Portfolios
who will have served as an independent trustee for at least five years at the
time of retirement. Benefits under this plan are based on compensation and years
of service. Pension expenses for the period ended April 30, 1997, included in
Trustees Fees and Expenses in the Statement of Operations, and accrued pension
liability included in other accrued liabilities, respectively, in the Statement
of Assets and Liabilities were as follows:
<TABLE>
<CAPTION>
Accrued
Pension Pension
Expenses Liability
-------- -------
<S> <C> <C>
GIP............................................................ $11,640 $73,972
CGP............................................................ 6,194 40,664
</TABLE>
88
<PAGE> 182
VISTA SERVICE CENTER
P.O. BOX 419392
KANSAS CITY, MO 64179
Investment Adviser, Administrator,
Shareholder and Fund Servicing Agent and Custodian
The Chase Manhattan Bank
Distributor
Vista Fund Distributors, Inc.
Transfer Agent
DST Systems, Inc.
Legal Counsel
Simpson Thacher & Bartlett
Independent Accountants
Price Waterhouse LLP
Vista Mutual Funds are distributed by Vista Fund Distributors, Inc., which is
unaffiliated with The Chase Manhattan Bank. Chase and its respective affiliates
receive compensation from the Vista Funds for providing investment advisory and
other services.
This report is submitted for the general information of the shareholders of the
funds. It is not authorized for distribution to prospective investors in the
funds unless preceded or accompanies 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.
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.
VEQTY-3-697
