Chase Vista
American Value
Semi-annual report
April 30, 1998
(Unaudited)
<PAGE>
Chase Vista Funds
CHAIRMAN'S LETTER
June 10, 1998
Dear Shareholder,
We are pleased to present this semi-annual report for the Chase Vista American
Value Fund for the six-month period ended April 30, 1998.
Stocks Posted Solid Gains As the Economy Continued to Grow
The stock market recorded strong performance as the economy continued to grow at
a healthy pace and inflation remained under control. Other factors that
contributed to the market's investment results included low interest rates, good
corporate earnings and solid cash flows into equity mutual funds.
Early in the period, the potential impact of the Asian economic crisis put
pressure on U.S stocks. However, the U.S. economy continued to grow despite
Asia's economic woes. In January, the stock market stalled again, as investors
worried about the market's future prospects, however, equities bounced back
again in February, as the Dow Jones industrial average plowed through the 9,000
and finished the period hovering near an all-time record level.
Bonds Posted Modest Gains As Interest Rates Stabilized
Bonds registered modest investment results in an environment that saw the U.S.
economy strengthen but inflation continue to remain under control.
The period began with a worry about the impact of the Asian crisis on global
economic growth. But when the shock of the Asian crisis subsided toward the end
of 1997, investors re-focused their attention on the U.S. economy. Bonds
performed well in January, despite the strongest Employment Cost Index (ECI)
report in five years. In February, several reports that suggested the economy
was overheating drove bond prices down. However, the market rebounded, and
interest rates stayed in a relatively narrow range, thanks partly to two
opposing forces: deflation concerns ignited by the Asian crisis and higher
inflation concerns due to the U.S. economy's better-than-expected performance.
Overall, it was another strong period for those invested in the U.S. stock
market. As always, all of us at Chase Vista encourage you to maintain your
investing discipline in the months and years ahead.
Sincerely,
/s/ Fergus Reid
Fergus Reid
Chairman
<PAGE>
American Value Fund
Portfolio of Investments April 30,1998 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- -------------------------------------------------------------------------------------------------------------------
Long Term Investments - 85.7%
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stock - 85.7%
Aerospace - 2.1 %
5,000 Raytheon Co., Class B $283,438
--------
Automotive - 1.9%
7,000 Genuine Parts Co. 252,000
Banking - 7.3%
4,697 Banc Once Corp. 276,242
2,800 BankAmerica Corp. 238,000
4,000 H. F. Ahmanson & Co. 305,000
1,200 J. P. Morgan & Company, Inc. 157,500
-------
976,742
-------
Computer Software - 1.9%
6,000 Electronic Data Systems Corp. 258,000
-------
Computers / Computer Hardware - 1.1%
2,000 Hewlett-Packard Co. 150,625
-------
Consumer Products - 4.5%
7,500 Fleetwood Enterprises, Inc. 346,406
5,000 Kimberly-Clark Corp. 253,750
-------
600,156
-------
Diversified - 4.5%
6,500 Fluor Corp. 307,125
7,000 Tenneco Inc. 301,438
-------
608,563
-------
Electronics / Electrical Equipment - 5.4%
10,000 EG&G, Inc. 301,250
4,000 Motorola, Inc. 222,500
4,000 Tecumseh Products Co., Class A 201,500
-------
725,250
-------
Financial Services - 2.9%
6,400 Federal National Mortgage Assoc. 383,200
-------
Food / Beverage Products - 1.5%
7,000 ConAgra, Inc. 204,313
-------
Insurance - 5.4%
5,000 Allstate Corp. 481,250
4,800 Safeco Corp. 239,700
-------
720,950
=======
Manufacturing - 3.6%
6,500 ITT Industries, Inc. 236,844
8,200 Zero Corp. 252,663
-------
489,507
-------
Oil & Gas - 11.7%
2,400 Atlantic Richfield Co. (ARCO) 187,200
10,000 Enron Oil & Gas Co. 233,750
9,500 Occidental Petroleum Corp. 279,656
5,600 Phillips Petroleum Co. 277,550
5,000 Royal Dutch Petroleum Co., New York Registered Shares, (Netherlands) 282,813
1,500 Texas Pacific Land Trust 68,250
10,000 Union Pacific Resources Group, Inc. 238,750
-------
1,567,969
---------
</TABLE>
2
<PAGE>
American Value Fund
Portfolio of Investments April 30,1998 (unaudited)(continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Paper/Forest Products - 6.1 %
11,500 Longview Fibre Co. $194,781
17,500 Louisiana-Pacific Corp. 382,813
5,000 Potlatch Corp. 236,875
---------
814,469
---------
Pharmaceuticals - 1.8%
2,000 Merck & Company, Inc. 241,000
---------
Printing & Publishing - 2.0%
4,000 Tribune Co. 264,000
---------
Real Estate Investment Trust - 7.4%
9,674 BRE Properties, Inc., Class A, 253,943
---------
Retailing - 7.4%
7,000 Albertson's, Inc., 350,000
2,000 Dayton-Hudson Corp. 174,621
4,600 Dillards Inc., Class A, 168,475
7,000 SUPERVALU, Inc. 305,813
---------
998,909
---------
Shipping/Transportation - 4.3%
9,000 Norfolk Southern Corp. 300,938
5,000 Union Pacific Corp., 273,750
---------
574,688
---------
Telecommunications - 2.7%
6,000 AT&T Corp. 360,375
---------
Tire & Rubber - 2.1 %
4,000 Goodyear Tire & Rubber, Inc. 280,000
---------
Utilities - 1.6%
8,000 Central & South West Corp. 208,500
---------
Wholesaling - 2.2%
7,200 Reliance Steel & Aluminum Co. 290,700
---------
Total Common Stock (Cost $7,968,814) 11,507,297
- -------------------------------------------------------------------------------------------------------------------
Total Long Term Investments (Cost $7,968,814) 11,507,297
- -------------------------------------------------------------------------------------------------------------------
Short Term Investments - 14.2%
- -------------------------------------------------------------------------------------------------------------------
Principal
Amount
Commercial Paper -
$420,800 American Express Credit Corp., 5.51% due 05/15/98 419,705
352,500 Associates Corp. of North America, 5.51% due 05105/98 352,284
274,000 General Electric Capital Corp., 5.50% due 05/13/98 273,498
392,400 Ford Motor Credit Company, 5.49 due 05/08/98 391,982
---------
Total Commercial Paper (Cost $1,437,469) 1,437,469
---------
</TABLE>
3
<PAGE>
American Value Fund
Portfolio of Investments April 30,1998 (unaudited)(continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U. S. Treasury Securities -
U.S. Treasury Bills,
$330,000 4.85% due 06/25/98 $327,555
139,000 4.94% due 06/25/98 137,951
---------
Total U.S. Treasury Securities (Cost $456,506) 465,506
---------
- -------------------------------------------------------------------------------------------------------------------
Total Short Term Investments (Cost $1,902,975) 1,902,975
- -------------------------------------------------------------------------------------------------------------------
Total Investments - 99.8%
(Cost $9,871,789) $13,410,272
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
4
<PAGE>
Chase Vista American Value Fund
Statement of Assets and Liabilities April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investment securities, at value (Note 1) $13,410,272
Cash 67,819
Receivables:
Interest and dividends 13,843
Fund shares sold 10,588
Other assets 226
-----------
Total assets 13,502,748
-----------
LIABILITIES:
Accrued liabilities: (Note 2)
Administration fees 1,669
Investment advisory fees 1,113
Shareholder servicing fees 1,113
Custodian 12,712
Other 51,357
-----------
Total Liabilities 67,964
NET ASSETS:
Paid in capital 9,908,085
Accumulated undistributed net investment income (8,275)
Accumulated undistributed net realized gain on investment
transactions (3,509)
Net unrealized appreciation of investments 3,538,483
-----------
Net Assets: $13,434,784
===========
Shares of beneficial interest outstanding ($.001 par
value; unlimited number of shares authorized): 898,086
Net asset value, maximum offering price and redemption
price per share* $14.96
-----------
Cost of Investments $9,871,789
-----------
</TABLE>
Net assets/shares outstanding
See notes to financial statements.
5
<PAGE>
Chase Vista American Value Fund
Statement of Operations
For the six months ended April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C>
Dividend $117,391
Interest 42,483
-----------
Total investment income 159,874
-----------
EXPENSES: (Note 2)
Administration fees 9,327
Distribution fees 15,546
Investment Advisory fees 43,528
Shareholder servicing fees 15,546
Custodian fees 21,381
Printing and postage 2,068
Professional fees 7,536
Registration costs 7,450
Transfer agent fees 12,437
Trustees fees and expenses 255
Other 9,191
-----------
Total expenses 144,265
Less amounts waived (Note 2) (62,183)
-----------
Net expenses
82,082
-----------
Net investment income 77,792
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 432,718
Change in net unrealized appreciation on investments 966,351
-----------
Net realized and unrealized gain on investments 1,399,069
-----------
Net increase in net assets from operations $1,476,861
===========
</TABLE>
See notes to financial statements.
6
<PAGE>
Chase Vista American Value Fund
Statements of Changes in Net Assets
For the periods indicated (unaudited)
<TABLE>
<CAPTION>
Six months Year
Ended Ended
04/30/98 10/31/97
-------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $77,792 $161,212
Net realized gain on investments 432,718 1,299,496
Change in net unrealized appreciation on investments 966,351 600,844
------------ -----------
Increase in net assets from operations 1,476,861 2,061,552
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1):
Net investment income (229,636) (72,761)
Net realized gain on investment transactions (1,731,280) (378,357)
------------ -----------
Total dividends and distributions (1,960,916) (451,118)
------------ -----------
Increase from capital share transactions (Note 5) 2,341,412 357,593
------------ -----------
Total increase in net assets 1,857,357 1,968,027
NET ASSETS:
Beginning of period 11,577,427 9,609,400
------------ -----------
End of period $13,434,784 $11,577 427
============ ===========
</TABLE>
In 1996, the fund changed its fiscal year end from November 30 to October 31.
See notes to financial statements.
7
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (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. Effective March 16, 1998 the
Vista Family of Mutual Funds changed their name to Chase Vista Funds. Chase
Vista American Value Fund, the "Fund", is a separate series of The Trust. The
Fund offers one class of shares only.
The Chase Manhattan Corporation entered into an agreement whereby it sold its
50% interest in Van Deventer & Hoch to Crestline Capital Partners L.P. On April
22, 1998, shareholders approved this agreement and effective April 30, 1998, the
Fund reorganized into a new mutual fund portfolio managed by Van Deventer &
Hoch.
The following is a summary of significant accounting policies followed by the
Fund:
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.
1. Valuation of investments - Equity securities are valued at the last sale
price on the exchange on which they are primarily traded, including the NASDAQ
National Market. Securities for which sale prices are not available and other
over-the-counter securities are valued at the last quoted bid price. Bonds and
other fixed income securities, other than short-term obligations, including
listed issues, are valued on the basis of valuations supplied by pricing
services or by matrix pricing systems of a major dealer in bonds. Short-term
debt securities with 61 days or more to maturity at time of purchase are valued,
through the 61st day prior to maturity, at market value based on quotations
obtained from market makers or other appropriate sources; thereafter, the value
on the 61st day is amortized on a straight-line basis over the remaining number
of days to maturity. Short-term investments with 60 days or less to maturity at
time of purchase are valued at amortized cost, which approximates market.
Portfolio securities for which there are no such quotations or valuations are
valued at fair value as determined in good faith by or at the direction of the
Trustees.
2. Repurchase agreements -- It is the Trust's policy that repurchase agreements
are fully collateralized by U.S. Treasury and Government Agency securities. All
collateral is held by the Trust's custodian bank, subcustodian, or a bank with
which the custodian bank has entered into a subcustodian agreement, or is
segregated in the Federal Reserve Book Entry System. In connection with
transactions in repurchase agreements, if the seller defaults and the value of
the collateral declines, or if the seller enters an insolvency proceeding,
realization of the collateral by the Trust may be delayed or limited.
8
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
3. 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.
4. Federal income taxes - The 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.
5. 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 Fund 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.
6. Expenses - Expenses directly attributable to a Fund are charged to that Fund;
other expenses are allocated proportionately among each Fund within the Trust in
relation to the net assets of each Fund or on another reasonable basis.
2. Fees and Other Transactions with Affiliates
A. Investment advisory fee -- Pursuant to an investment advisory agreement, The
Chase Manhattan Bank, ( "Chase" or the "Advisor" ) acts as the Investment
Advisor to the Fund. Chase is a direct wholly owned subsidiary of The Chase
Manhattan Corporation. As Investment Advisor, Chase supervises the investments
of the Fund and for such services is paid a fee. The fee is computed daily and
paid monthly at an annual rate equal to 0.70% of the Fund's average daily net
assets. For the six months ended April 30, 1998, the Advisor voluntarily waived
$36,899 of its fees.
VanDeventer and Hoch, a registered investment advisor is the sub-investment
advisor for the Fund pursuant to a Sub-lnvestment Advisory Agreement with Chase
and is paid a fee by Chase at an annual rate equal to 0.35% of the Fund's
average daily net assets.
9
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
B. Shareholder servicing fees - The Trust has adopted an Administrative Services
Plan which, among other things, provides that the Trust on behalf of the Fund
may obtain the services of one or more Shareholder Servicing Agents. For its
services, 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 the Fund. Chase's shareholder servicing fees amounted to $2,086 after
waivers.
For the six months ended April 30, 1998, the Shareholder Servicing Agents have
voluntarily waived $ 9,338 of their fees.
C. Distribution and sub-administration fees - Pursuant to a Distribution and
Sub-Administration Agreement, Vista Fund Distributors, Inc., (the "Distributor")
a wholly owned subsidiary of The BISYS Group, Inc., acts as the Trust's
exclusive underwriter and promotes and arranges for the sale of the Fund's
shares. In addition, the Distributor provides certain sub-administration
services to the Trust, including providing officers, clerical staff, and office
space for an annual fee of 0.05% of the average daily net assets of the Fund.
The Trustees have adopted a Distribution Plan ( the "Distribution Plan" ) for
the Fund in accordance with Rule 12b-1 under the 1940 Act. The Distribution Plan
provides that the 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 Fund.
For the six months ended April 30, 1998, the Distributor voluntarily waived $
15,546 of distribution fees.
D. Administration fee-- Pursuant to an Administration Agreement, Chase, (the
"Administrator") provides certain administration services to the Trust. For
these services and facilities, the Administrator receives from the Fund a fee
computed at the annual rate equal to 0.10% of the Fund's average daily net
assets.
E. Other - Certain officers of the Trust are officers of Vista Fund
Distributors, Inc., or of its parent corporation, BISYS.
Chase provides portfolio accounting and custody services for the Fund.
Compensation for such services is presented in the Statement of Operations as
custodian fees.
3. Investment Transactions--For the six months ended April 30, 1998, purchases
and sales of investments, (excluding short-term investments), were as follows:
<TABLE>
<S> <C>
Purchases (excluding U.S. Government) $ 1,407,069
Sales (excluding U.S. Government) 1,602,350
</TABLE>
10
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
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, 1998, are as
follows:
<TABLE>
<S> <C>
Aggregate cost $ 9,871,789
===========
Gross unrealized appreciation $ 3,664,995
Gross unrealized depreciation (126,512)
-----------
Net unrealized appreciation $ 3,538,483
===========
</TABLE>
5. Transactions in Shares of Beneficial Interest - Transactions in Shares of
Beneficial Interest were as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Six Months Ended April 30, Year Ended October 31,
1998 1997
Amount Shares Amount Shares
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 762,686 50,171 $1,184,581 81,628
Shares issued in
reinvestment of
distributions. 1,926,257 132,678 441,671 32,814
Shares redeemed (347,531) (22,546) (1,268,659) (89,019)
-----------------------------------------------------
Net increase (decrease)
in Trust shares
outstanding $ 2,341,412 160,303 $357,593 25,423
=====================================================
</TABLE>
- --------------------------------------------------------------------------------
6. Retirement Plan--The Trust has adopted an unfunded noncontributory defined
benefit pension plan covering all independent trustees of the Trust 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, 1998, 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 $103 and $691 respectively.
11
<PAGE>
Chase Vista American Value Fund
Financial Highlights (unaudited)
<TABLE>
<CAPTION>
---------- -------- --------- --------
Six Months Year 12/l/95## 2/3/95*
Ended Ended Through Through
04/30/98 10/31/97 10/31/96 11/30/95
---------- -------- --------- --------
PER SHARE OPERATING PERFORMANCE:
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $15.69 $13.49 $12.11 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.074 0.218 0.152 0.180
Net gains or losses in securities (both realized
and unrealized) 1.722 2.602 1.694 2.000
---------- -------- --------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.796 2.820 1.846 2.180
---------- -------- --------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income 0.274 0.100 0.196 0.070
Distributions from capital gains 2.252 0.520 0.270 -
TOTAL DISTRIBUTIONS 2.526 0.620 0.466 0.070
NET ASSET VALUE, END OF PERIOD $14.96 $15.69 $13.49 $12.11
========== ======== ========= ========
TOTAL RETURN 12.62% 21.67% 15.76% 21.80%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000 omitted) $13,435 $11,577 $9,609 $8,399
Ratios to Average Net Assets:#
Ratio of Expenses 1.32% 1.32% 1.37% 1.23%
Ratio of Net Investment Income 1.25% 1.50% 1.38% 1.97%
Ratio of expenses without waivers and
assumption of expenses 2.32% 2.45% 2.52% 2.03%
Ratio of net investment income without
waivers and assumption of expenses 0.25% 0.37% 0.23% 1.17%
Portfolio Turnover Rate 13% 37% 25% 11%
</TABLE>
* Commencement of operations.
# Short periods have been annualized
##In 1996, the Fund changed its fiscal year end from November 30 to October 31.
See notes to financial statements.
12
