[CHASE VISTA FUNDS LOGO]
SEMI-ANNUAL REPORT
Chase Vista(SM). Setting the Global Standard.
CHASE VISTA U.S. TREASURY INCOME FUND
CHASE VISTA U.S. GOVERNMENT SECURITIES FUND
CHASE VISTA BOND FUND
CHASE VISTA SHORT-TERM BOND FUND
April 30, 1998
(unaudited)
FIXED INCOME FUNDS
<PAGE>
HIGHLIGHTS
o The Asian economic crisis weighed heavily on the market early in the
period but was less of a factor during the first four months of 1998.
o Inflation remained under control and, during much of the period, interest
rates remained in a relatively narrow trading range.
<TABLE>
<CAPTION>
CONTENTS
<S> <C>
Chairman's Letter 3
Chase Vista U.S. Treasury Income Fund
Fund Commentary o Portfolio of Investments 4
Chase Vista U.S. Government Securities Fund
Fund Commentary o Portfolio of Invessments 9
Chase Vista Bond Fund
Fund Commentary o Portfolio of Investments 15
Chase Vista Short-Term Bond Fund
Fund Commentary o Portfolio of Investments 24
Fund Financial Statements 32
Notes to Financial Statements 35
Financial Highlights 43
</TABLE>
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>
Unaudited
Chase Vista(SM) Funds
CHAIRMAN'S LETTER
June 10, 1998
Dear Shareholder:
We are pleased to present this semi-annual report for the following Chase Vista
Fixed Income Funds for the period ended April 30, 1998:
<TABLE>
<S> <C>
[bullet] U.S. Treasury Income Fund [bullet] Bond Fund
[bullet] U.S. Government Securities Fund [bullet] Short-Term Bond Fund
</TABLE>
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 investors worrying about the impact of the Asian
financial 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 pace of U.S. economic activity.
In December, bonds performed well due to weaker-than-expected economic data,
most notably a benign retail sales report for November. Deflation concerns
brought on by Asia's economic troubles, also helped bolster the market. 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 minor higher
inflation concerns due to the U.S. economy's better-than-expected performance.
For the reporting period, the Federal Reserve Board maintained its neutral
monetary policy, as it has for more than one year. The Fed has not raised
short-term interest rates since March, 1997 and has not lowered them since
December, 1996.
Everyone at Chase Vista wishes to remind you of the important role fixed income
investments play in a diversified portfolio. That said, we encourage you to
maintain your investing discipline in the months and years ahead and look
forward to continuing to help you reach your financial goals.
Sincerely,
/s/ Fergus Reid
Fergus Reid
Chairman
3
<PAGE>
Unaudited
About Your Fund
CHASE VISTA U.S. TREASURY INCOME FUND
- --------------------------------------------------------------------------------
FUND FACTS
<TABLE>
<S> <C> <C>
Objective: Income
Primary investments: High-quality
U.S. Treasury Bonds
Suggested investment
time frame: Mid- to Long-Term
Market benchmark: Lehman Treasury Bond Index
Lipper Funds category: General U.S. Government Funds Average
Class A Class B
---------------- ---------------
Inception date: 9/8/87 11/4/93
Newspaper symbol: USTreas not listed
As of April 30, 1998
Net assets: $57.2 million $11.0 million
Average maturity: 9.5 years 9.5 years
Average duration: 5.4 years 5.4 years
Average quality: AAA AAA
</TABLE>
4
<PAGE>
Unaudited
About Your Fund
CHASE VISTA U.S. TREASURY INCOME FUND
PERFORMANCE
Chase 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 2.86%
(Class A shares, without sales charges) for the six-month period ended April
30, 1998.
STRATEGY
After struggling early in the period, the Fund enjoyed good performance in
January due largely to a sharp decline in interest rates. Two key events that
helped fuel the rally were a weaker-than-expected report on new orders by the
National Association of Purchasing Managers and a suggestion by Federal Reserve
Board chairman Alan Greenspan that the U.S. economy may experience disinflation
due to the turmoil in Asia.
Since the beginning of the year, the Fund has focused on two strategies worth
noting: With the yield curve flattening, the Fund has been using a barbell
strategy, meaning it has an overweighting in long-term bonds and an
overweighting in short-term bonds (those with maturities under two years). The
Fund has also maintained a slightly higher duration compared to its benchmark,
expecting lower interest rates due to the impact of Asia's economic woes on the
global economy.
OUTLOOK
With the Asian economic crisis continuing to be a threat to the global economy
and inflation still under control, the Fund's management team expects interest
rates to trend lower in the months ahead. Given this forecast, the management
team expects to maintain its longer-than-average duration and a barbell
maturity structure going forward.
5
<PAGE>
Unaudited
About Your Fund
CHASE VISTA U.S. TREASURY INCOME FUND
CHASE VISTA U.S. TREASURY INCOME FUND
COMPOSITION OF TOTAL ASSETS AS OF 4/30/98
<TABLE>
<S> <C>
Cash/Other 3.8%
Bonds 96.2%
</TABLE>
CHASE VISTA U.S. TREASURY INCOME FUND
COMPOSITION OF MARKET VALUE OF PORTFOLIO AS OF 4/30/98
<TABLE>
<S> <C>
U.S. Treasury Securities 92.0%
U.S. Government Agency Obligations 8.0%
</TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/98+
<TABLE>
<CAPTION>
Without With
Class A Shares Sales Charge Sales Charge
<S> <C> <C>
One Year 9.51% 4.59%
Five Years 5.48% 4.52%
Ten Years 7.99% 7.50%
Without With
Class B Shares CDSC CDSC*
One Year 8.74% 3.74%
Five Years+ 4.83% 4.50%
Ten Years+ 7.66% 7.66%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. 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.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
Sales charge for Class A Shares is 4.50%.
* Assumes 5% CDSC for the one year period, a 2% CDSC for the five year period
and 0% CDSC for the period since inception.
+ The Fund commenced operations on 9/8/87. Class B Shares were introduced on
11/4/93. Investors should note that the information presented for Class B
Shares prior to their introduction is based on 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.
6
<PAGE>
Unaudited
About Your Fund
CHASE VISTA U.S. TREASURY INCOME FUND
GROWTH OF HYPOTHETICAL $10,000 INVESTMENTS IN
CHASE VISTA U.S. TREASURY FUND-CLASS I
AND ITS KEY BENCHMARKS
<TABLE>
<CAPTION>
Chase Vista U.S. Lipper General Lehman Treasury
Treasury Income Fund U.S. Gov't Funds Avg. Bond Index
--------------- ------------------- ---------
<S> <C> <C> <C>
4/88 9,550 10,000 10,000
4/89 10,234 10,640 10,759
4/90 11,064 11,416 11,661
4/91 12,717 13,013 13,360
4/92 13,934 14,276 14,741
4/93 15,785 16,108 16,854
4/94 15,872 16,112 17,037
4/95 16,717 16,961 18,143
4/96 17,888 18,177 19,661
4/97 18,825 19,214 20,914
4/30/98 20,616 21,187 23,233
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. 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 Chase Vista U.S. Treasury Income Fund, the Lipper General U.S.
Government Funds Average and the Lehman Treasury Bond Index from April 30, 1988
to April 30, 1998. The performance of the Fund assumes the reinvestment of all
dividends and capital gains and includes a 4.50% sales charge. The performance
of the average and the index do not include a sales charge and have been
adjusted to reflect reinvestment of all dividends and capital gains on the
securities included in the benchmark.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
The Lipper General U.S. Government Funds Average represents the average
performance of a universe of 194 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. This index is unmanaged and reflects the
reinvestment of dividends. An individual cannot invest directly in the index.
7
<PAGE>
Chase Vista U.S. Treasury Income Fund
Portfolio of Investments April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -------------- --------------------------------------- -------------
<S> <C> <C>
Long-Term Investments -- 88.7%
- ---------------------------------------------------------------------
U.S. Treasury Securities -- 88.7%
---------------------------------------
U. S. Treasury Notes & Bonds,
$ 9,400,000 6.13%, 11/15/27 $ 9,617,328
1,700,000 6.13%, 08/15/07 1,745,951
1,000,000 6.38%, 08/15/27 1,052,190
1,000,000 6.50%, 05/31/02 1,029,530
2,000,000 7.50%, 02/15/05 2,195,620
6,000,000 7.75%, 01/31/00 6,211,860
7,000,000 7.88%, 08/15/01 7,459,340
6,000,000 8.50%, 02/15/20 7,770,960
9,200,000 9.13%, 05/15/99 9,523,472
3,900,000 10.75%, 08/15/05 5,042,583
8,000,000 11.75%, 08/15/01 9,244,960
=========== ======================================= ===========
Total Long-Term Investments 60,893,794
(Cost $61,265,700)
======================================================
Short-Term Investments -- 7.8%
- ---------------------------------------------------------------------
U. S. Government Agency Obligations -- 7.7%
------------------------------------------------------
5,300,000 Federal Home Loan Bank, Discount
Note, 5.43%, 05/01/98 5,300,000
U. S. Treasury Securities -- 0.1%
------------------------------------------------------
100,000 U.S. Treasury Bill, 4.95%, 08/27/98 + 98,378
=========== ======================================= ===========
Total Short-Term Investments 5,398,378
(Cost $5,398,378)
======================================================
Total Investments -- 96.5% $66,292,172
(Cost $66,664,078)
======================================================
</TABLE>
Purchased Futures Outstanding
<TABLE>
<CAPTION>
Number Original Nominal
Expiration of Nominal Value at Unrealized
Description Date Contracts Value 04/30/98 (Depreciation)
- ----------- ------------ ----------- ------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
U.S. Long June 1998 28 $3,370,539 $3,366,124 ($ 4,415)
Bond
</TABLE>
See notes to financial statements.
8
<PAGE>
Unaudited
About Your Fund
CHASE VISTA U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
FUND FACTS
<TABLE>
<S> <C> <C>
Objective: Income
Primary investments: High-quality U.S. Government,
Agency
and Corporate Bonds
Suggested investment
time frame: Mid- to Long-Term
Market benchmark: Lehman Government Bond Index
Merrill Lynch Government Bond Index
Merrill Lynch 50% Govt./50% Mtg. Index
Lipper Funds category: General U.S. Government Funds
Average
Class A Class I
--------------- ---------------
Inception date: 5/6/96 2/19/93
Newspaper symbol: not listed US Govt
As of April 30, 1998
Net assets: $2.3 million $53.4 million
Average maturity: 18.5 years 18.5 years
Average duration: 5.35 years 5.35 years
Average quality: AAA AAA
</TABLE>
9
<PAGE>
Unaudited
About Your Fund
CHASE VISTA U.S. GOVERNMENT SECURITIES FUND
PERFORMANCE
Chase Vista U.S. Government Securities Fund, which seeks income by investing in
a portfolio of U.S. government and agency securities, had a total return of
2.55% (Class A shares, without sales charges) for the six-month period ended
April 30, 1998.
STRATEGY
Early in the period, turmoil in Asia caused interest rates to decline as the
market abandoned all hopes of any Federal Reserve Board tightening. As the U.S.
economy continued to show stronger-than-expected economic growth in the first
quarter of 1998, the Fed adopted a tightening bias in its March Federal Open
Market Committee (FOMC) meeting. Expectations of an economic slowdown due to
the Asian crisis, coupled with the Fed's tightening bias, kept interest rates
in a narrow range. This environment was ideal for mortgage-backed securities,
which outperformed during the reporting
period.
Given this backdrop, the Fund decreased its exposure to Treasury and Agency
securities and increased its exposure to mortgage-backed securities to
capitalize on their relatively higher yields. Currently, mortgage-backed
securities comprise roughly 35% of the Fund. Throughout the period, the Fund
also maintained a slightly higher duration compared to its benchmark, expecting
lower interest rates due to the impact of Asia's economic woes on the global
economy.
OUTLOOK
Looking ahead, the management team's outlook for U.S. Government securities
remains positive, and the prepayment expectations for mortgage-backed
securities are stable. Additionally, inflation is still under control and does
not appear to be a major threat near-term. In this environment, the management
team expects to maintain a slightly higher-than-average duration compared to
its index.
10
<PAGE>
Unaudited
About Your Fund
CHASE VISTA U.S. GOVERNMENT SECURITIES FUND
CHASE VISTA U.S. GOVERNMENT SECURITIES FUND
COMPOSITION OF TOTAL ASSETS AS OF 4/30/98
<TABLE>
<S> <C>
Cash/Other 12.0%
Bonds 88.0%
</TABLE>
CHASE VISTA U.S. GOVERNMENT SECURITIES FUND
COMPOSITION OF MARKET VALUE OF PORTFOLIO AS OF 4/30/98
<TABLE>
<S> <C>
U.S. Treasury Securities 43.0%
U.S. Government Agency Obligations 23.3%
Mortgage Backed Securities 33.7%
</TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/98+
<TABLE>
<CAPTION>
Without With
Class A Shares Sales Charge Sales Charge
<S> <C> <C>
One Year 9.05% 4.14%
Five Years 5.54% 4.57%
Since Inception (2/19/93)+ 5.68% 4.74%
Class I Shares
One Year 9.20%
Five Years 5.64%
Since Inception (2/19/93) 5.78%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. 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.
The Fund is currently waiving certain fees. the voluntary waiver may be
modified or terminated at any time, which would reduce performance.
Sales charge on Class A Shares is 4.50%.
+ The Fund commenced operations on 2/19/93. Class A Shares were introduced on
5/6/96. Investors should note that the information presented for Class A Shares
prior to their introduction is based on 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 Class A shares. Class I shares
have a $1,000,000 minimum initial deposit and carry no sales charge.
11
<PAGE>
Unaudited
About Your Fund
CHASE VISTA U.S. GOVERNMENT SECURITIES FUND
GROWTH OF HYPOTHETICAL $10,000 INVESTMENTS IN
CHASE VISTA U.S. GOVERNMENT SECURITIES FUND-CLASS I
AND ITS KEY BENCHMARKS
<TABLE>
<CAPTION>
Chase Vista U.S. Lipper Gen. U.S. Lehman Gov't Merrill Lynch Merrill Lynch 50% Gov't/
Gov't Securities Fund Funds Avg. Bond Index Gov't Bond Index 50% Mtg/Index
--------------- ------------------ --------- --------- ----------------------
<S> <C> <C> <C> <C> <C>
2/93 10,000 10,000 10,000 10,000 10,000
4/94 10,168 10,133 10,221 10,175 10,199
4/95 10,681 10,686 10,887 10,929 10,968
4/96 11,455 11,431 11,794 11,857 11,375
4/97 12,172 12,083 12,558 12,677 12,157
4/30/98 13,293 13,324 13,946 13,887 13,154
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. 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 Chase Vista U.S. Government Securities Fund, the Lipper General U.S.
Government Funds Average, the Lehman Government Bond Index, the Merrill Lynch
Government Bond Index and a composite of the Merrill Lynch Government and
Mortgage Master Index from February 19, 1993 to April 30, 1998. The performance
of the Fund assumes the reinvestment of all dividends and capital gains and
does not include a sales charge. The performance of the average and the indexes
do not include a sales charge and have been adjusted to reflect reinvestment of
all dividends and capital gains on the securities included in the benchmark.
The Fund commenced operations on 2/19/93. Class A Shares were introduced on
5/6/96. Investors should note that the information presented for Class A Shares
prior to their introduction is based on 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 Class A shares. Class I shares
have a $1,000,000 minimum initial deposit and carry no sales charge.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
The Lipper General U.S. Government Funds Average represents the average
performance of a universe of 194 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 Government Bond Index is composed of the Treasury Bond Index and the
Agency Bond Index and includes U.S. Treasury and agency bond issues. The index
is unmanaged and reflects the reinvestment of dividends. An individual cannot
invest directly in an index.
The Merrill Lynch (ML) Government Index consists of bonds with a maturity
greater than or equal to one year. The Merrill Lynch (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
directly in an index.
12
<PAGE>
Chase Vista U.S. Government Securities Fund
Portfolio of Investments April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -------------- ---------------------------------- -------------
<S> <C> <C>
Long-Term Investments -- 97.1%
- ----------------------------------------------------------------
U. S. Treasury Securities -- 54.4%
-------------------------------------------------
U. S. Treasury Notes & Bonds,
$ 8,500,000 5.63%, 10/31/99 $8,502,635
2,600,000 5.75%, 10/31/00 2,607,722
2,000,000 5.88%, 09/30/02 2,014,680
6,000,000 6.00%, 02/15/26 5,980,320
5,500,000 6.13%, 11/15/27 5,627,160
4,500,000 6.38%, 03/31/01 4,587,885
1,000,000 6.50%, 10/15/06 1,047,810
----------
Total U. S. Treasury Securities 30,368,212
(Cost $30,310,250) ----------
Mortgage Backed Securities -- 42.7%
-------------------------------------------------
Mortgage Pass-Thru Securities -- 28.2%
2,104,362 Federal Home Loan Mortgage Corp.,
Pool E00491, 6.50%, 06/01/12 2,116,841
Federal National Mortgage
Association,
8,400,000 TBA 6.50%, 05/13/28 8,313,396
1,035,522 Pool 313748, 13.00%, 10/01/15 1,247,151
4,000,000 Government Mortgage Association
Corp., TBA 7.00%, 05/20/28 4,047,520
----------
15,724,908
----------
Collateralized Mortgage Obligations -- 14.5%
6,000,000 Federal National Mortgage
Association, + 6.06%, 04/18/28 6,018,724
2,100,000 Government Mortgage Association
Corp., 6.25%, 08/20/27 2,048,156
----------
8,066,880
----------
Total Mortgage Backed Securities 23,791,788
(Cost $23,732,858)
=================================================
Total Long-Term Investments 54,160,000
(Cost $54,043,108)
=================================================
</TABLE>
See notes to financial statements.
13
<PAGE>
Chase Vista U.S. Government Securities Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -------------- --------------------------------------- --------------
<S> <C> <C>
Long-Term Investments -- 29.7%
- ----------------------------------------------------------------------
U. S. Government Agency Obligations -- 29.6%
-------------------------------------------------------
$16,500,000 Federal Home Loan Bank, Discount
Note Obligations, 5.43%,
05/01/98 $16,500,000
-----------
U. S. Treasury Securities -- 0.1%
-------------------------------------------------------
50,000 U. S. Treasury Bill,+ 5.09%, 08/27/98 49,166
=========== ======================================= ===========
Total Short-Term Investments 16,549,166
(Cost $16,549,166)
=======================================================
Total Investments -- 126.8% $70,709,166
(Cost $70,592,274)
=======================================================
</TABLE>
Purchased Futures Outstanding
<TABLE>
<CAPTION>
Number Original Nominal
Expiration of Nominal Value at Unrealized
Description Date Contracts Value 04/30/98 Appreciation
- ---------------- ------------ ----------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
U.S. Long Bond June 1998 7 $838,743 $841,531 $2,788
</TABLE>
See notes to financial statements.
14
<PAGE>
Unaudited
About Your Fund
CHASE VISTA BOND FUND
- --------------------------------------------------------------------------------
FUND FACTS
<TABLE>
<S> <C> <C> <C>
Objective: Income
Primary investments: High-quality Government, Agency,
Asset-Backed and Corporate Bonds
Suggested investment
time frame: Mid- to Long-Term
Market benchmark: Lehman Aggregate Bond Index
Lipper Funds category: Corporate Debt A-Rated Funds Average
Class A Class B Class I
--------------- --------------- ---------------
Inception date: 5/6/96 5/6/96 11/30/90
Newspaper symbol: not listed not listed Bond
As of April 30, 1998
Net assets: $31.8 million $2.6 million $18.2 million
Average maturity: 8.7 years 8.7 years 8.7 years
Average duration: 4.5 years 4.5 years 4.5 years
Average quality: AAA AAA AAA
</TABLE>
15
<PAGE>
Unaudited
About Your Fund
CHASE VISTA BOND FUND
PERFORMANCE
Chase Vista Bond Fund, which seeks to provide a high level of current income
through a portfolio of investment-grade government, agency, asset-backed and
corporate bonds, had a total return of 2.76% (Class A shares, without sales
charges) for the six-month period ended April 30, 1998.
STRATEGY
The Fund rebounded from the impact of the Asian economic and currency crisis
and finished the period with modest gains.
The Asian turmoil had a negative effect on several sectors of the fixed-income
market in November, particularly Asian Yankee bonds. While the turmoil along the
Pacific Rim raised concerns among investors about the direction of the global
economy, it could not derail the domestic economic machine from completing a
solid year. For 1997, Gross Domestic Product (GDP) grew by 3.8%, the fastest
pace since Ronald Reagan roamed the halls of the White House.
During the second half of the period, the Fund's holdings in mortgage-backed
securities contributed favorably to performance. Waning prepayment fears
coupled with relatively stable interest rates enabled these securities to post
good performance versus other fixed-income securities. The Fund also benefited
from its exposure to corporates, particularly issues in the U.S. financial
sector, which enjoyed good performance due to the increased merger and
acquisition activity within the industry. The Fund's overweighting in
asset-backed securities also helped performance.
OUTLOOK
With the Asian economic crisis still a threat to the global economy, the Fund's
management team expects interest rates to trend lower in the months ahead.
Given this forecast, the management team expects to maintain its
longer-than-average duration and barbell maturity structure, as well as to
continue to overweight the spread sectors.
16
<PAGE>
Unaudited
About Your Fund
CHASE VISTA BOND FUND
COMPOSITION OF TOTAL ASSETS AS OF 4/30/98
<TABLE>
<S> <C>
Cash/Other 2.8%
Bonds 97.2%
</TABLE>
CHASE VISTA BOND FUND
COMPOSITION OF MARKET VALUE OF PORTFOLIO AS OF 4/30/98
<TABLE>
<S> <C>
U.S. Treasury Securities 21.4%
U.S. Government Agency Obligations 27.4%
Asset Backed Securities 3.2%
Commercial Mortgages Backed Securities 7.9%
Corporate Notes & Bonds 24.5%
Mortgage Backed Securities 15.6%
</TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/98+
<TABLE>
<CAPTION>
Without With
Class A Shares Sales Charge Sales Charge
<S> <C> <C>
One Year 11.04% 6.04%
Five Years+ 6.59% 5.61%
Since Inception (11/30/90)+ 8.31% 7.64%
Without With
Class B Shares CDSC CDSC*
One Year 10.07% 5.07%
Five Years+ 6.41% 6.09%
Since Inception (11/30/90)+ 8.18% 8.18%
Class I Shares
One Year 11.35%
Five Years 6.80%
Since Inception (11/30/90) 8.45%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. 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.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
* Assumes 5% CDSC for the one year period, a 2% CDSC for the five year period
and 0% CDSC for the period since inception.
+ The Fund commenced operations on 11/30/90. Class A and B Shares were
introduced on 5/6/96. Investors should note that the information presented for
Class A and B Shares prior to their introduction is based on historical
expenses of the predecessor Class I Shares, which are lower than the actual
expenses of the Class A and B Shares. Additionally, annualized figures have
been restated to reflect the maximum 4.50% 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.
17
<PAGE>
Unaudited
About Your Fund
CHASE VISTA BOND FUND
GROWTH OF HYPOTHETICAL $10,000 INVESTMENTS IN
CHASE VISTA BOND FUND-CLASS I
AND ITS KEY BENCHMARKS
<TABLE>
<CAPTION>
Chase Vista Lipper Corp. Debt A- Lehman Aggregate
Bond Fund Related Funds Avg. Bond Index
--------------- ------------------- ---------
<S> <C> <C> <C>
11/90 10,000 10,000 10,000
4/91 10,466 10,576 10,554
4/92 11,545 11,743 11,715
4/93 13,134 13,443 13,269
4/94 13,281 13,556 13,425
4/95 14,155 14,364 14,408
4/96 15,328 15,493 15,652
4/97 16,389 16,491 16,761
4/30/98 18,249 18,227 18,589
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. 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 Chase Vista Bond Fund, the Lipper Corporate Debt A-Rated Funds
Average and the Lehman Aggregate Bond Index from November 30, 1990 to April 30,
1998. The performance of the Fund assumes the reinvestment of all dividends and
capital gains and does not include a sales charge. The performance of the
averages and the index do not include a sales charge and have been adjusted to
reflect reinvestment of all dividends and capital gains on the securities
included in the benchmark. The Fund commenced operations on 11/30/90. Class A
and B Shares were introduced on 5/6/96. Investors should note that the
information presented for Class A and B Shares prior to their introduction is
based on historical expenses of the predecessor Class I Shares, which are lower
than the actual expenses of the Class A and B Shares. Additionally, annualized
figures have been restated to reflect the maximum 4.50% 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.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
The Lipper A-Rated Funds Average represents the average performance of a
universe of 146 actively managed corporate debt A-rated or better 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 reinvestment of dividends. An individual
cannot invest in the index.
18
<PAGE>
Chase Vista Bond Fund
Portfolio of Investments April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -------------- ------------------------------------- -------------
<S> <C> <C>
Long Term Investments -- 93.3%
- -------------------------------------------------------------------
U.S. Treasury Securities -- 24.2%
-------------------------------------
U. S. Treasury Notes & Bonds
$ 2,000,000 5.63%, 11/30/99 $2,000,940
1,000,000 6.00%, 08/15/00 1,008,120
700,000 6.25%, 04/30/01 711,704
2,000,000 6.25%, 08/31/02 2,042,500
1,000,000 6.38%, 05/15/00 1,014,530
1,250,000 6.38%, 09/30/01 1,277,150
2,000,000 6.38%, 08/15/27+ 2,104,380
1,000,000 8.25%, 07/15/98+ 1,006,250
325,000 8.50%, 11/15/00 346,837
1,050,000 10.75%, 02/15/03+ 1,268,694
----------
Total U.S. Treasury Securities 12,781,105
(Cost $12,708,994) ----------
U. S. Government Agency Obligations -- 11.3%
----------------------------------------------------
650,000 Federal Home Loan Mortgage Corp.
5.75%, 02/15/08 638,424
Federal National Mortgage
Association
1,733,784 6.50%, 01/01/13 1,739,731
3,500,000 7.50%, 05/13/28 3,590,790
----------
Total U. S. Government Agency
Obligations 5,968,945
(Cost $5,991,619) ----------
Corporate Notes & Bonds -- 25.7%
----------------------------------------------------
Airlines -- 2.2%
263,237 American Airlines, # 9.71%,
01/30/07 299,593
474,463 Continental Airlines, Inc., 10.22%,
07/02/14 # 572,914
250,000 Delta Air Lines, 10.06%, 01/02/1916 312,813
----------
1,185,320
----------
</TABLE>
See notes to financial statements.
19
<PAGE>
Chase Vista Bond Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -------------- -------------------------------------- ---------------
<S> <C> <C>
Long-Term Investments -- (continued)
- ----------------------------------------------------------------------
Banking -- 6.7%
$ 1,000,000 BankAmerica Corp. 10.00%,
02/01/03 $ 1,147,810
1,000,000 Comerica Bank, 7.25%, 06/15/07 1,052,300
280,000 Corp. Andina de Fomento, Yankee
(Venezuela), 7.38%, 07/21/00 285,513
1,000,000 Key Bank of Washington, 7.13%,
08/15/06 1,039,420
------------
3,525,043
------------
Computers/Computer Hardware -- 1.2%
600,000 International Business Machines
Corp., 7.13%, 12/01/96 624,750
------------
Construction/Transportation -- 0.6%
300,000 Zhuhai Highway Co., Ltd., Ser. A,
Yankee (China),# 9.13%, 07/01/06 292,770
------------
Entertainment/Leisure -- 1.0%
500,000 Time Warner Inc., 7.75%, 06/15/05 530,190
------------
Financial Services -- 7.5%
750,000 Citibank Credit Card Master Trust,
Ser. 1998 - 2A, 6.05%, 01/15/10 731,246
750,000 Commercial Mortgage Acceptance
Corp., Ser. 1997 - ML1, 6.78%,
12/15/30 754,453
1,100,000 DLJ, 6.90%, 10/01/07 # 1,124,750
335,352 Hero Asia BVI Co., Ltd., Yankee
Issue, # 9.11%, 10/15/01 349,846
1,000,000 Lehman Brothers Holdings Inc.,
6.50%, 04/15/08 # 990,600
------------
3,950,895
------------
Industrial Components -- 0.9%
500,000 Kroger Co., 6.38%, 03/01/08 491,555
------------
Oil & Gas -- 1.8%
400,000 Petroleum Geological Services, 6.63%,
03/30/08 398,840
</TABLE>
See notes to financial statements.
20
<PAGE>
Chase Vista Bond Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ------------ ------------------------------------- -------------
<S> <C> <C>
Long-Term Investments -- (continued)
- -----------------------------------------------------------------
$ 375,000 Petroleum Geological Services, ASA,
Yankee, (Norway) 7.50%, 03/31/07 $ 396,653
140,228 YPF Sociedad Anonima, Yankee,
(Argentina) 7.50%, 10/26/02 141,805
----------
937,298
----------
Real Estate Investment Trust -- 0.5%
250,000 Simon Debartolo Group, 7.13%,
09/20/07 254,670
----------
Retail -- 1.4%
750,000 Dayton Hudson Co., 5.90%,
06/15/37 760,313
----------
Shipping/Transportation -- 1.0%
500,000 Union Pacific Corp. 7.60%, 05/01/05 526,665
----------
Special Purpose -- 0.9%
500,000 Kellogg # 5.75%, 02/02/01 496,450
----------
Total Corporate Notes & Bonds 13,575,919
(Cost $13,498,894) ----------
Mortgage-Backed Securities -- 17.6%
----------------------------------------------------
Mortgage-Backed Pass Thru Securities -- 17.1%
257,774 Federal Home Loan Mortgage Corp.,
Gold, Pool A01717, 12.00%,
06/01/17 297,566
Federal National Mortgage
Association,
4,750,000 TBA 7.00%, 05/13/28 4,801,965
849,874 TBA 10.50%, 06/01/27 942,748
556,196 Pool 100177, 12.50%, 10/15/15 650,449
398,602 Pool 100156, 12.50%, 06/15/19 470,135
302,027 Pool 313748, 13.00%, 10/01/15 363,753
Government National Mortgage
Association,
1,072,444 ARM, Pool 370957, 6.50%,
12/15/23 1,067,081
</TABLE>
See notes to financial statements.
21
<PAGE>
Chase Vista Bond Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ------------ --------------------------------------- ------------
<S> <C> <C>
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
$ 454,574 ARM, Pool 780412, 7.50%,
08/15/26 $ 467,357
---------
9,061,054
---------
Collateralized Mortgage Obligations -- 0.5%
250,000 Federal Home Loan Mortgage Corp.,
Ser. 1343, Class H, 7.50%,
05/15/19 254,295
---------
Total Mortgage-Backed Securities 9,315,349
(Cost $9,298,953) ---------
Commercial Mortgage Backed Securities -- 8.9%
-----------------------------------------------------
1,000,000 Asset Securitization Corp., Ser. 1997-
D5, Class A1C, 6.75%, 02/14/41 1,025,000
750,000 DLJ Mortgage Acceptance Corp., Ser.
1997-CF2, Class A1B, # 6.82%,
09/15/07 770,625
300,000 GS Mortgage Securities Corp. II, Ser.
1997-GL, Class A2D, 6.94%,
07/13/30 310,922
300,000 JP Morgan Commercial Mortgage
Finance Corp., Ser. 1997-C5, Class
A3, 7.09%, 09/15/29 312,563
750,000 Merrill Lynch Mortgage Investors,
Inc., Ser. 1997-C2, Class C,
6.73%, 12/10/29 750,352
500,000 Nomura Asset Securities Corp., Ser.
1996-MD5, Class A1B, # 7.12%,
04/13/36 521,250
350,000 Norwest Asset Securities Corp., Ser.
1997-14, Class A11, 7.25%,
10/25/27 351,094
672,698 Wells Fargo Capital Markets
Apartments Financing, Ser. APT,
Class A, # 6.56%, 12/29/05 679,842
---------
Total Commercial Mortgage Backed
Securities 4,721,648
(Cost $4,679,453) ---------
</TABLE>
See notes to financial statements.
22
<PAGE>
Chase Vista Bond Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ------------- ------------------------------------ -------------
<S> <C> <C>
Long-Term Investments -- (continued)
- -----------------------------------------------------------------
Asset Backed Securities -- 5.6%
------------------------------------
$1,000,000 Alliance Capital Funding, LLC,
5.84%, 02/15/10 $ 1,028,750
250,000 American Express Credit Account
Master Trust, Ser. 1997-1, Class A,
6.40%, 04/15/05 254,090
400,000 Contimortgage Home Equity Loan
Trust, Series 1998-1, 6.43%,
04/15/16 401,121
230,956 Mid-State Trust, Ser. 6, Class A4,
7.79%, 07/01/35 234,132
500,000 Nomura CBO, Ltd., Ser. 1997-1,
Class A2, # 6.67%, 05/15/09 545,540
500,000 The Money Store Home Equity Trust
Ser. 96-D, A7, 7.11%, 04/15/25 508,750
-----------
Total Asset Backed Securities 2,972,383
(Cost $2,908,942) -----------
===================================================
Total Long Term Investments 49,335,349
(Cost $49,086,855)
===================================================
Short-Term Investments -- 19.7%
- -----------------------------------------------------------------
U. S. Government Agency Obligations -- 19.7%
---------------------------------------------------
10,400,000 Federal Home Loan Bank, Discount
Note, 5.43%, 05/01/98 10,400,000
(Cost $10,400,000)
===================================================
Total Investments -- 113.0% $59,735,349
(Cost $59,486,855)
===================================================
</TABLE>
See notes to financial statements.
23
<PAGE>
Unaudited
About Your Fund
CHASE VISTA SHORT-TERM BOND FUND
- --------------------------------------------------------------------------------
FUND FACTS
<TABLE>
<S> <C> <C>
Objective: Current Income
Primary investments: Investment-grade fixed-income
securities
with maturities of three years or less.
Suggested investment
time frame: Short-Term
Market benchmark: Lehman 1-3 Year Government
Bond Index
Lipper Funds category : Short-Term Investment Grade Debt
Funds Average
Class A Class I
---------------- ---------------
Inception date: 5/6/96 11/30/90
Newspaper symbol: STBond ST Bond
As of April 30, 1998
Net assets: $18.6 million $37.0 million
Average maturity: 2.2 years 2.2 years
Average duration: 1.6 years 1.6 years
Average quality: AAA AAA
</TABLE>
24
<PAGE>
Unaudited
About Your Fund
CHASE VISTA SHORT-TERM BOND FUND
PERFORMANCE
Chase Vista Short-Term Bond Fund, which seeks current income by investing in a
portfolio of short-term investment grade fixed income securities, had a total
return of 2.48% (Class A shares, without sales charges) for the six-month
period ended April 30, 1998.
STRATEGY
The Fund recorded modest gains in an environment heavily influenced by the
economic and currency problems in southeast Asia.
The period began with a slight rise in short-term interest rates combined with
a modest decline in long-term rates. This resulted in a flattening of the yield
curve, meaning the difference in yield between short- and long-term rates
narrowed, making short-term investments more attractive. Performance in most
fixed-income securities was hindered, however, by the impact of the Asian
financial crisis.
Beginning early in 1998, interest rates stayed in a relatively narrow trading
range for the remainder of the period. This interest-rate environment proved
beneficial to the Fund due to its overweighting in mortgage-backed securities.
Mortgages typically fare well when interest rates stabilize because prepayment
fears subside. Other investments that contributed favorably to the Fund's
performance included non-index securities, such as commercial mortgage-backed
securities and asset-backed securities. Corporate securities, which performed
poorly during the height of the Asian crisis and again in February, performed
well late in the period.
OUTLOOK
The management team's outlook for short-term bonds remains positive. In the
months ahead, the Asian economic problems could prove problematic, causing more
concerns of a global economic slowdown. Meanwhile, at current short-term yield
levels, real returns on bonds remain attractive and the difference between
yields on long- and short-term fixed-income securities continues to be flat.
Given this backdrop, the management team expects to keep the Fund's duration
close to neutral but maintain a significant overweight to all the spread
sectors to enhance the Fund's yield.
25
<PAGE>
Unaudited
About Your Fund
CHASE VISTA SHORT-TERM BOND FUND
CHASE VISTA SHORT-TERM BOND FUND
COMPOSITION OF TOTAL ASSETS AS OF 4/30/98
<TABLE>
<S> <C>
Cash/Other 7.9%
Bonds 92.1%
</TABLE>
CHASE VISTA SHORT-TERM BOND FUND
COMPOSITION OF MARKET VALUE OF PORTFOLIO AS OF 4/30/98
<TABLE>
<S> <C>
U.S. Treasury Securities 7.2%
U.S. Government Agency Obligations 11.5%
Asset Backed Securities 33.1%
Corporate Notes & Bonds 29.7%
Mortgage Backed Securities 15.2%
State & Municipal Obligations 3.3%
</TABLE>
------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/98+
<TABLE>
<CAPTION>
Without With
Class A Shares Sales Charge Sales Charge
<S> <C> <C>
One Year 6.36% 4.77%
Five Years+ 5.42% 5.09%
Since Inception (11/30/90)+ 6.15% 5.92%
Class I Shares
One Year 6.39%
Five Years 5.27%
Since Inception (11/30/90) 5.85%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. 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.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
+ The Fund commenced operations on 11/30/90. Class A Shares were introduced on
5/6/96. Investors should note that the information presented for Class A Shares
prior to their introduction is based on historical expenses of the predecessor
Class I Shares, which are lower than the actual expenses of the A Shares.
Additionally, annualized figures have been restated to reflect the
maximum 1.50% front-end 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.
26
<PAGE>
Unaudited
About Your Fund
CHASE VISTA SHORT-TERM BOND FUND
GROWTH OF HYPOTHETICAL $10,000 INVESTMENTS IN
CHASE VISTA SHORT-TERM BOND FUND-CLASS I
AND ITS KEY BENCHMARKS
<TABLE>
<CAPTION>
Chase Vista Short-Term Lipper Short Inv. Lehman 1-3 Year
Bond Fund Grade Debt Funds Avg. Gov't Bond Index
---------------------- -------------------- ----------------
<S> <C> <C> <C>
11/90 10,000 10,000 10,000
4/91 10,345 10,458 10,447
4/92 11,116 11,374 11,418
4/93 11,799 12,225 12,341
4/94 12,064 12,480 12,544
4/95 12,715 13,056 13,256
4/96 13,522 13,893 14,164
4/97 14,336 14,694 15,032
4/30/98 15,252 15,651 16,102
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. 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 Chase 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, 1998. The performance of the Fund assumes
reinvestment of all dividends and capital gains and does not include a sales
charge. The performance of the average and the index do not include a sales
charge and have been adjusted to reflect the reinvestment of all dividends and
capital gains on the securities included in the benchmark. The Fund commenced
operations on 11/30/90. Class A Shares were introduced on 5/6/96. Investors
should note that the information presented for Class A Shares prior to their
introduction is based on historical expenses of the predecessor Class I Shares,
which are lower than the actual expenses of the A Shares. Additionally,
annualized figures have been restated to reflect the maximum 1.50% front-end
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.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
The Lipper Short-Term Investment Grade Debt Funds Average represents the
average performance of a universe of 104 actively managed short-term 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 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.
27
<PAGE>
Chase Vista Short-Term Bond Fund
Portfolio of Investments April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -------------- ------------------------------------- -------------
<S> <C> <C>
Long Term Investments -- 93.8%
- -------------------------------------------------------------------
U.S. Treasury Security -- 7.4%
-------------------------------------
$ 4,000,000 U.S. Treasury Note, 6.25%, 01/31/02 $4,076,880
(Cost $4,100,167) ----------
U. S. Government Agency Obligations -- 3.4%
----------------------------------------------------
1,850,000 Federal National Mortgage
Association, MTN, 6.03%,
10/23/00 1,861,859
(Cost $1,854,511) ----------
State & Municipal Obligations -- 3.4%
----------------------------------------------------
1,850,000 New York City, New York, GO,
Taxable, Ser. I, 6.85%, 04/15/99 1,867,335
(Cost $1,850,000) ----------
Corporate Notes & Bonds -- 30.3%
-------------------------------------
Banking -- 3.9%
2,000,000 NationsBank Corp., 8.13%, 06/15/02 2,135,120
----------
Diversified -- 2.3%
1,250,000 Cox Enterprises, # 6.25%, 08/26/99 1,252,488
----------
Financial Services -- 16.5%
1,750,000 Associated Corp., Pass-Thru Asset
Trust Securities, # 6.45%, 09/15/00 1,763,108
1,000,000 Corp. Andina de Fomento, Yankee
(Venezuela), 7.38%, 07/21/00 1,019,690
2,000,000 General Motors Acceptance Corp.,
8.40%, 10/15/99 2,065,940
409,875 Hero Asia BVI Co., Ltd., Yankee
Issue, # (China), 9.11%, 10/15/01 427,590
1,850,000 Lehman Brothers Holdings, # 6.33%,
08/01/00 1,856,660
2,000,000 Kellogg, # 5.75%, 02/02/01 1,985,800
----------
9,118,788
----------
Industrial Components -- 1.8%
1,000,000 Raytheon Corp. 5.95%, 03/15/01 996,440
----------
</TABLE>
See notes to financial statements.
28
<PAGE>
Chase Vista Short-Term Bond Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ------------ ------------------------------------ -------------
<S> <C> <C>
Long-Term Investments -- (continued)
- ----------------------------------------------------------------
Oil & Gas -- 1.3%
$ 701,139 YPF Sociedad Anonima, Yankee,
(Argentina) 7.50%, 10/26/02 $ 709,027
----------
Telecommunications -- 2.7%
1,500,000 Telecommunications, Inc., 7.38%,
02/15/00 1,530,555
----------
Retail -- 1.8%
1,000,000 Dayton Hudson Co., 5.90%,
06/15/37 1,013,750
----------
Total Corporate Notes & Bonds 16,756,168
(Cost $16,722,201) ----------
Mortgage-Backed Securities -- 15.5%
---------------------------------------------------
Mortgage Pass-Thru Securities -- 1.10%
Federal National Mortgage
Association,
556,196 Pool 100177, 12.50%, 10/15/15 650,449
----------
Collateralized Mortgage Obligations -- 14.4%
1,688,494 Federal Home Loan Mortgage Corp.,
Ser. 1311, Class G , 7.50%,
05/15/19 1,691,128
868,494 Ser. 1997-54, Class VA, 6.50%,
08/18/02 871,879
1,975,954 Federal National Mortgage
Association 5.95%, 07/18/19 1,982,078
1,408,814 GE Capital Mortgage Services, Inc.,
Ser. 1997-9, Class 1A8 7.00%,
05/25/04 1,416,735
2,000,000 GE Capital Mortgage Services, Inc.,
Ser. 1994-8, Class A3, 6.00%,
02/25/24 1,991,240
----------
7,953,060
----------
Total Mortgage-Backed Securities 8,603,509
(Cost $8,633,483) ----------
</TABLE>
See notes to financial statements.
29
<PAGE>
Chase Vista Short-Term Bond Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ------------ ------------------------------------- -------------
<S> <C> <C>
Long-Term Investments -- (continued)
- -----------------------------------------------------------------
Commercial Mortgage Backed Securities -- 3.2%
----------------------------------------------------
$ 168,828 Blackrock Capital Finance L.P., Ser.
1996-C2, Class A, # 7.64%,
11/16/26 $ 168,828
893,573 CS First Boston Mortgage Securities
Corp. Ser. 1997-SPCE, # 6.65%,
06/20/03 889,384
720,595 Kidder Peabody Acceptance Corp.,
Ser. 1993-M1, Class A1, 7.15%,
04/25/25 721,045
----------
Total Commercial Backed Securities 1,779,257
(Cost $1,787,033) ----------
Asset Backed Securities -- 30.6%
----------------------------------------------------
2,000,000 Citibank Credit Card Master Trust,
Ser. 1998-3A, 5.80%, 02/07/05 1,974,360
2,000,000 Contimortgage Home Equity Loan
Trust, Series 1998-1, 6.43%,
04/15/16 2,005,625
2,000,000 Nations Bank Commercial
FRN # 5.95%, 09/20/02 2,001,426
1,000,000 Nomura Depositor Trust, Ser. 1998-
ST1A FRN # 6.24%, 02/15/34 1,001,875
2,000,000 Prime Funding Ltd., Ser. 98-1A, A1
FRN # 5.78%, 02/20/01 2,000,000
2,000,000 SASCO FRN 6.08%, 04/30/13 2,000,000
1,899,634 Signet Heloc Trust, Ser. 1995 -A
5.93%, 06/20/04 1,902,368
1,000,000 The Money Store Home Equity Trust
Ser. 96-D, A7, 7.11%, 04/15/25 1,017,500
2,000,000 Toyota Auto Lease Trust, Ser. 1997
-A, 6.35%, 04/26/04 2,015,625
1,000,000 Triangle Funding Ltd. FRN # 5.73%,
10/15/03 998,755
----------
Total Asset Backed Securities 16,917,534
(Cost $16,942,900) ----------
</TABLE>
See notes to financial statements.
30
<PAGE>
Chase Vista Short-Term Bond Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -------------- --------------------------------- --------------
<S> <C> <C>
Total Long Term Investments $51,862,542
(Cost $51,890,295)
=================================================
Short-Term Investments -- 8.4%
- ----------------------------------------------------------------
U.S. Government Agency Obligations -- 8.4%
-------------------------------------------------
$ 4,659,000 Federal Home Loan Bank, Discount
Note, 5.43%, 05/01/98 $ 4,659,000
(Cost $4,659,000)
=================================================
Total Short-Term Investments 4,659,000
(Cost $4,569,000)
=================================================
Total Investments -- 102.2% $56,521,542
(Cost $56,549,295)
=================================================
</TABLE>
Index
# -- Security may only be sold to qualified institutional buyers.
GO -- General Obligations.
TBA -- To be announced.
ARM -- Adjustable Rate Mortgage.
MTN -- Medium Term Note.
+ -- All or a portion of this security is pledged.
CBO -- Collateralized bond obligation.
FRN -- Floating Rate Note.
See notes to financial statements.
31
<PAGE>
Chase Vista Funds
Statement of Assets and Liabilities April 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Treasury U.S. Government
Income Securities Bond Short-Term
Fund Fund Fund Bond Fund
-------------- ----------------- ---------------- --------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value
(Note 1) .............................. $ 66,292,172 $70,709,166 $ 59,735,349 $ 56,521,542
Cash ................................... 70,346 85,796 110,200 7,309
Receivables:
Investment securities sold ............ -- 9,156,156 1,017,359 --
Variation margin ...................... 42,875 10,719 -- --
Interest .............................. 1,363,946 393,198 576,899 451,768
Fund shares sold ...................... 1,164,041 1,595 -- 128,123
Other .................................. 2,122 1,156 489 870
------------ ----------- ------------ ------------
Total assets ......................... 68,935,502 80,357,786 61,440,296 57,109,612
------------ ----------- ------------ ------------
LIABILITIES:
Payables:
Investment securities purchased -- 24,273,860 8,422,568 1,019,880
Trust shares redeemed ................. 93,724 -- 14,881 579,699
Dividends Payable ..................... 61,860 225,151 103,723 85,959
Accrued liabilities: (Note 2)
Investment advisory fees .............. 7,187 -- -- --
Administration fees ................... 8,293 -- -- --
Distribution fees ..................... 6,806 -- 4,185 2,483
Shareholder servicing fees ............ 7,352 11,142 3,130 2,338
Custodian ............................. 6,856 8,346 13,496 15,153
Other ................................. 54,134 45,723 34,684 53,018
------------ ----------- ------------ ------------
Total Liabilities .................... 246,212 24,564,222 8,596,667 1,758,530
------------ ----------- ------------ ------------
NET ASSETS:
Paid in capital ........................ 73,809,218 55,813,625 52,384,643 56,444,460
Accumulated undistributed net
investment income ..................... (61,144) (15,379) 30,227 (7,317)
Accumulated undistributed net
realized gain (loss) on
investment transactions ............... (4,682,463) (124,362) 180,265 (1,058,308)
Net unrealized appreciation
(depreciation) of investments ......... (376,321) 119,680 248,494 (27,753)
------------ ----------- ------------ ------------
Net Assets: .............................. $ 68,689,290 $55,793,564 $ 52,843,629 $ 55,351,082
============ =========== ============ ============
Shares Outstanding:
Class A Shares ......................... 5,134,101 237,395 2,983,263 1,812,016
Class B Shares ......................... 991,292 -- 245,229 --
Class I Shares ......................... -- 5,313,459 1,715,021 3,687,008
Net Asset Value:*
Class A Shares (and redemption
price) ................................ $ 11.21 $ 10.07 $ 10.69 $ 10.06
Class B Shares** ....................... $ 11.21 -- $ 10.73 --
Class I Shares ......................... -- $ 10.05 $ 10.68 $ 10.07
Class A Maximum Public
Offering Price Per Share .............. $ 11.74 $ 10.54 $ 11.19 $ 10.21
(net asset value plus 4.5%, 4.5%,
4.5% and 1.5%, respectively, of
net asset value per share)
Cost of Investments .................... $ 66,664,078 $70,592,274 $ 59,486,855 $ 56,549,295
============ =========== ============ ============
</TABLE>
- --------------
* Net assets/shares outstanding.
** Redemption price may be reduced by contingent deferred sales charge.
See notes to financial statements.
32
<PAGE>
Chase Vista Funds
Statement of Operations For the six months ended April 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Treasury U.S. Government
Income Securities Bond Short-Term
Fund Fund Fund Bond Fund
-------------- ----------------- ------------- -------------
<S> <C> <C> <C> <C>
INTEREST INCOME ...................... $ 2,756,778 $1,633,342 $1,591,308 $1,600,703
------------ ---------- ---------- ----------
EXPENSES: (Note 2)
Administration fees ................ 56,906 42,222 37,367 38,250
Distribution fees .................. 121,831 3,049 44,905 18,329
Investment Advisory fees ........... 113,894 84,443 74,715 63,728
Shareholder servicing fees ......... 94,911 70,369 62,262 63,728
Custodian fees ..................... 24,987 32,342 43,659 40,556
Printing and postage ............... 6,917 7,439 7,439 4,959
Professional fees .................. 12,397 15,721 16,520 12,709
Registration costs ................. 7,439 14,876 27,287 28,109
Transfer agent fees ................ 49,354 16,748 43,462 25,943
Trustees fees ...................... 1,898 1,407 1,245 1,275
Other .............................. 1,289 1,379 3,374 4,359
------------ ---------- ---------- ----------
Total expenses ................... 491,823 289,995 362,235 301,945
------------ ---------- ---------- ----------
Less amounts waived (Note 2E) ........ 138,068 104,452 182,050 170,687
------------ ---------- ---------- ----------
Net expenses ...................... 353,755 185,543 180,185 131,258
------------ ---------- ---------- ----------
Net investment income ............ 2,403,023 1,447,799 1,411,123 1,469,445
------------ ---------- ---------- ----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments ........................ 1,224,529 463,260 265,144 (54,580)
Futures transactions ............... (31,673) -- -- --
Change in net unrealized
appreciation/depreciation on:
Investments ....................... (1,106,888) (450,069) (264,591) (213,072)
------------ ---------- ---------- ----------
Net realized and unrealized gain
(loss) on investments ............. 85,968 13,191 553 (267,652)
------------ ---------- ---------- ----------
Net increase in net assets from
operations ........................ $ 2,488,991 $1,460,990 $1,411,676 $1,201,793
============ ========== ========== ==========
</TABLE>
See notes to financial statements.
33
<PAGE>
- --------------------------------------------------------------------------------
Chase Vista Funds
Statement of Changes in Net Assets For the periods indicated (unaudited)
<TABLE>
<CAPTION>
U.S. Treasury U.S. Government
Income Securities
Fund Fund
--------------------------------- --------------------------------
11/01/97 Year 11/01/97 Year
Through Ended Through Ended
04/30/98 10/31/97 04/30/98 10/31/97
---------------- ---------------- --------------- ----------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income ............................. $ 2,403,023 $ 6,476,281 $ 1,447,799 $ 3,751,506
Net realized gain (loss) on investments and
futures transactions ............................. 1,192,856 293,032 463,260 321,514
Change in net unrealized appreciation/
depreciation on investments and futures .......... (1,106,888) 841,259 (450,069) 559,124
-------------- -------------- ------------ --------------
Increase in net assets from operations ............ 2,488,991 7,610,572 1,460,990 4,632,144
-------------- -------------- ------------ --------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM: (Note 1I)
Net investment income ............................. (2,430,752) (6,429,569) (1,423,954) (3,892,375)
Net realized gain on investment transactions ...... -- -- -- --
-------------- -------------- ------------ --------------
Total dividends and distributions ................. (2,430,752) (6,429,569) (1,423,954) (3,892,375)
-------------- -------------- ------------ --------------
Increase (decrease) from capital share transactions
(Note 5) ......................................... (27,105,072) (21,930,528) 631,917 (16,928,627)
-------------- -------------- ------------ --------------
Total increase (decrease) in net assets ......... (27,046,833) (20,749,525) 668,953 (16,188,858)
NET ASSETS:
Beginning of period ............................... 95,736,123 116,485,648 55,124,611 71,313,469
-------------- -------------- ------------ --------------
End of period ..................................... $ 68,689,290 $ 95,736,123 $ 55,793,564 $ 55,124,611
============== ============== ============ ==============
<CAPTION>
Bond Short-Term Bond
Fund Fund
------------------------------- -------------------------------
11/01/97 Year 11/01/97 Year
Through Ended Through Ended
04/30/98 10/31/97 04/30/98 10/31/97
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income ............................. $ 1,411,123 $ 1,556,798 $ 1,469,445 $ 2,894,977
Net realized gain (loss) on investments and
futures transactions ............................. 265,144 528,940 (54,580) 45,795
Change in net unrealized appreciation/
depreciation on investments and futures .......... (264,591) 276,123 (213,072) (78,356)
------------ ------------ ------------ ------------
Increase in net assets from operations ............ 1,411,676 2,361,861 1,201,793 2,862,416
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM: (Note 1I)
Net investment income ............................. (1,351,155) (1,565,376) (1,430,044) (2,916,272)
Net realized gain on investment transactions ...... (652,359) (421,167) -- --
------------ ------------ ------------ ------------
Total dividends and distributions ................. (2,003,514) (1,986,543) (1,430,044) (2,916,272)
------------ ------------ ------------ ------------
Increase (decrease) from capital share transactions
(Note 5) ......................................... 7,489,965 25,984,244 7,944,486 (4,969,789)
------------ ------------ ------------ ------------
Total increase (decrease) in net assets ......... 6,898,127 26,359,562 7,716,235 (5,023,645)
NET ASSETS:
Beginning of period ............................... 45,945,502 19,585,940 47,634,847 52,658,492
------------ ------------ ------------ ------------
End of period ..................................... $ 52,843,629 $ 45,945,502 $ 55,351,082 $ 47,634,847
============ ============ ============ ============
</TABLE>
See notes to financial statements.
34
<PAGE>
Chase Vista 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 its name to Chase Vista Funds. U.S.
Treasury Income Fund ("CVUSTI") (formerly the U.S. Government Income Fund),
U.S. Government Securities Fund ("CVUSGS"), Bond Fund ("CVBF"), and Short-Term
Bond Fund ("CVSTBF"), 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>
CVUSTI Class A, Class B
CVUSGS Class A, Institutional
CVBF Class A, Class B, Institutional
CVSTBF 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 ("Class I"). 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 following is a summary of significant accounting policies followed by the
Funds:
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.
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.
35
<PAGE>
Chase Vista Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
As of April 30, 1998, the Funds had outstanding futures contracts as listed
on the Fund's Portfolio of Investments.
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 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 CVUSTI may write 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, 1998, CVUSTI 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 CVUSTI, 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 base 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 CVUSTI) 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
36
<PAGE>
Chase Vista Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
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.
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 CVUSTI, CVUSGS, CVBF
and CVSTBF, 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 CVUSTI, CVUSGS and CVBF,
and 0.10% for CVSTBF 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.
37
<PAGE>
Chase Vista Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
E. Waivers of fees -- For the six months ended April 30, 1998, the
Investment Adviser, Shareholder Servicing Agent, Administrator and
Distributor voluntarily waived fees for each of the Funds as follows:
<TABLE>
<CAPTION>
Fee CVUSTI CVUSGS CVBF CVSTBF
- ------------------------------------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Administration ................ -- $ 32,939 $ 37,367 $ 38,250
Distribution .................. $ 46,680 3,049 15,375 7,344
Investment Advisory ........... 32,068 65,412 74,715 63,728
Shareholder Servicing ......... 59,320 3,052 54,593 61,365
-------- -------- -------- --------
Total ......................... $138,068 $104,452 $182,050 $170,687
======== ======== ======== ========
</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 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>
<CAPTION>
CVUSTI CVUSGS CVBF CVSTBF
-------------- --------------- -------------- --------------
<S> <C> <C> <C> <C>
Purchases (excluding
U.S. Government)..... -- -- $13,655,140 $15,721,867
Sales (excluding
U.S. Government)..... -- -- 8,004,883 5,164,507
Purchases of
U.S. Government ..... $30,533,516 $234,773,014 28,908,102 70,262,578
Sales of
U.S. Government ..... 59,841,477 238,917,770 35,001,471 82,715,568
</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, 1998 are as follows:
<TABLE>
<CAPTION>
CVUSTI CVUSGS CVBF CVSTBF
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Aggregate cost ........... $66,664,078 $70,592,274 $59,486,855 $56,549,295
----------- ----------- ----------- -----------
Gross unrealized
appreciation ........... $ 772,686 $ 210,068 $ 388,297 $ 101,717
Gross unrealized
depreciation ........... (1,144,592) (93,176) (139,803) (129,470)
----------- ----------- ----------- -----------
Net unrealized
appreciation
(depreciation) ......... $ (371,906) $ 116,892 $ 248,494 $ (27,753)
=========== =========== =========== ===========
</TABLE>
38
<PAGE>
Chase Vista Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
5. Transactions in Shares of Beneficial Interest -- Transactions in Shares of
Beneficial Interest were as follows:
<TABLE>
<CAPTION>
U.S. Treasury Income Fund
-----------------------------------------------------------------
11/01/97
Through Year Ended
04/30/98 10/31/97
-------------------------------- --------------------------------
Amount Shares Amount Shares
---------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Class A
Shares sold ........................ $ 10,734,024 950,818 $ 17,269,062 1,559,726
Shares issued in reinvestment
of distributions ................. 1,517,396 134,497 3,401,952 307,858
Shares redeemed .................... (39,910,079) (3,510,245) (42,298,156) (3,808,141)
------------- ---------- ------------- ----------
Net increase (decrease) in
Trust shares outstanding ......... $ (27,658,659) (2,424,930) $ (21,627,142) (1,940,557)
============= ========== ============= ==========
</TABLE>
<TABLE>
<CAPTION>
U.S. Treasury Income Fund
-----------------------------------------------------------------
11/01/97
Through Year Ended
04/30/98 10/31/97
------------------------------- -------------------------------
Amount Shares Amount Shares
--------------- ------------- --------------- -------------
<S> <C> <C> <C> <C>
Class B
Shares sold ......................... $2,593,301 229,455 $3,269,722 297,277
Shares issued in reinvestment
of distributions .................. 221,889 19,679 398,315 36,079
Shares redeemed ..................... (2,261,603) (200,348) (3,971,423) (360,294)
---------- -------- ---------- --------
Net increase (decrease) in
Trust shares outstanding .......... $ 553,587 48,786 $ (303,386) (26,938)
========== ======== ========== ========
</TABLE>
<TABLE>
<CAPTION>
U.S. Government Securities Fund
--------------------------------------------------------------
11/01/97
Through Year Ended
04/30/98 10/31/97
---------------------------- -------------------------------
Amount Shares Amount Shares
------------- ------------ --------------- -------------
<S> <C> <C> <C> <C>
Class A
Shares sold ........................ $823,298 81,523 $ 549,982 55,802
Shares issued in reinvestment
of distributions ................. 54,435 5,394 171,581 17,393
Shares redeemed .................... (763,434) (75,768) (1,815,693) (183,713)
-------- ------- ----------- --------
Net increase (decrease) in
Trust shares outstanding ......... $114,299 11,149 $(1,094,130) (110,518)
======== ======= =========== ========
</TABLE>
39
<PAGE>
Chase Vista Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Government Securities Fund
--------------------------------------------------------------------
11/01/97
Through Year Ended
04/30/98 10/31/97
------------------------------- ----------------------------------
Amount Shares Amount Shares
--------------- ------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Class I
Shares sold ........................ $6,205,978 616,174 $ 14,832,339 1,501,089
Shares issued in reinvestment
of distributions ................. 34,968 3,472 359,775 36,601
Shares redeemed .................... (5,723,328) (567,576) (31,026,611) (3,153,376)
---------- -------- ------------ ----------
Net increase (decrease) in
Trust shares outstanding ......... $ 517,618 52,070 $(15,834,497) (1,615,686)
========== ======== ============ ==========
</TABLE>
<TABLE>
<CAPTION>
Bond Fund
-------------------------------------------------------------
11/01/97
Through Year Ended
04/30/98 10/31/97
-------------------------------- ----------------------------
Amount Shares Amount Shares
---------------- --------------- -------------- -------------
<S> <C> <C> <C> <C>
Class A
Shares sold ................... $ 16,486,043 1,531,937 $ 26,602,921 2,486,484
Shares issued in reinvestment
of distributions ............ 364,022 33,927 117,182 11,037
Shares redeemed ............... (11,008,686) (1,022,086) (1,593,402) (150,272)
------------- ---------- ------------ ---------
Net increase (decrease) in
Trust shares outstanding .... $ 5,841,379 543,778 $ 25,126,701 2,347,249
============= ========== ============ =========
</TABLE>
<TABLE>
<CAPTION>
Bond Fund
-----------------------------------------------------------
11/01/97
Through Year Ended
04/30/98 10/31/97
---------------------------- ----------------------------
Amount Shares Amount Shares
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
Class B
Shares sold ........................ $1,427,102 132,364 $1,489,103 139,177
Shares issued in reinvestment
of distributions ................. 57,956 5,381 72,014 6,801
Shares redeemed .................... (276,831) (25,644) (951,913) (89,193)
---------- ------- ---------- -------
Net increase (decrease) in
Trust shares outstanding ......... $1,208,227 112,101 $ 609,204 56,785
========== ======= ========== =======
</TABLE>
40
<PAGE>
Chase Vista Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Fund
-----------------------------------------------------------------
11/01/97
Through Year Ended
04/30/98 10/31/97
------------------------------- -------------------------------
Amount Shares Amount Shares
--------------- ------------- --------------- -------------
<S> <C> <C> <C> <C>
Class I
Shares sold ........................ $3,049,239 284,098 $6,196,592 584,008
Shares issued in reinvestment
of distributions ................. 652,772 60,887 1,353,464 128,627
Shares redeemed .................... (3,261,652) (303,108) (7,301,718) (699,075)
---------- -------- ---------- --------
Net increase (decrease) in
Trust shares outstanding ......... $ 440,359 41,877 $ 248,339 13,560
========== ======== ========== ========
</TABLE>
<TABLE>
<CAPTION>
Short-Term Bond Fund
-----------------------------------------------------------------
11/01/97
Through Year Ended
04/30/98 10/31/97
-------------------------------- --------------------------------
Amount Shares Amount Shares
---------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Class A
Shares sold ........................ $ 23,793,680 2,360,191 $ 24,856,342 2,467,419
Shares issued in reinvestment
of distributions ................. 291,732 28,959 414,005 41,121
Shares redeemed .................... (15,647,150) (1,551,986) (24,816,324) (2,466,062)
------------- ---------- ------------- ----------
Net increase (decrease) in
Trust shares outstanding ......... $ 8,438,262 837,164 $ 454,023 42,478
============= ========== ============= ==========
</TABLE>
<TABLE>
<CAPTION>
Short-Term Bond Fund
--------------------------------------------------------------------
11/01/97
Through Year Ended
04/30/98 10/31/97
------------------------------- ----------------------------------
Amount Shares Amount Shares
--------------- ------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Class I
Shares sold ........................ $7,146,958 707,701 $12,347,482 1,223,232
Shares issued in reinvestment
of distributions ................. 641,030 63,566 1,921,759 190,597
Shares redeemed .................... (8,281,764) (820,444) (19,693,053) (1,951,222)
---------- -------- ----------- ----------
Net increase (decrease) in
Trust shares outstanding ......... $ (493,776) (49,177) $(5,423,812) (537,393)
========== ======== =========== ==========
</TABLE>
41
<PAGE>
Chase Vista Funds
Notes to Financial Statements (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, 1998,
included in Trustees Fees 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>
CVUSTI ......... $856 $6,380
CVUSGS ......... 499 3,510
CVBF ........... 350 1,622
CVSTBF ......... 418 2,683
</TABLE>
42
<PAGE>
- --------------------------------------------------------------------------------
Chase Vista Funds
Financial Highlights (unaudited)
<TABLE>
<CAPTION>
U.S. Treasury Income Fund**
-------------------------------------------------------------------------
Class A
-------------------------------------------------------------------------
11/01/97 Year Ended
Through -------------------------------------------------------------
04/30/98 10/31/97 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 ......... $ 11.26 $ 11.13 $ 11.40 $ 10.60 $ 12.10 $ 11.68
-------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net Investment Income ...................... 0.367 0.662 0.655 0.699 0.646 0.666
Net Gain or (Losses) in Securities
(both realized and unrealized) ............ (0.047) 0.126 (0.268) 0.798 (1.297) 0.699
-------- ------- -------- ------- -------- -------
Total from Investment Operations ........... 0.320 0.788 0.387 1.497 (0.651) 1.365
-------- ------- -------- ------- -------- -------
Less Distributions:
Dividends from Net Investment Income 0.370 0.657 0.656 0.697 0.646 0.667
Distributions from Capital Gains ........... -- -- -- -- 0.203 0.287
-------- ------- -------- ------- -------- -------
Total Distributions ........................ 0.370 0.657 0.656 0.697 0.849 0.954
-------- ------- -------- ------- -------- -------
Net Asset Value, End of Period ............... $ 11.21 $ 11.26 $ 11.13 $ 11.40 $ 10.60 $ 12.10
======== ======= ======== ======= ======== =======
Total Return (1) 2.86% 7.35% 3.56% 14.59% (5.58%) 12.35%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ..... $ 57,574 $85,133 $111,482 $99,109 $99,524 $92,039
Ratios to average net assets#:
Ratio of Expenses ........................... 0.82% 0.90% 0.90% 0.87% 0.76% 0.75%
Ratio of Net Investment Income .............. 6.45% 5.97% 5.89% 6.37% 5.74% 5.61%
Ratio of Expenses Without Waivers and
Assumption of Expenses ..................... 1.23% 1.21% 1.29% 1.40% 1.28% 1.14%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses ........ 6.04% 5.66% 5.50% 5.84% 5.22% 5.22%
Portfolio Turnover Rate ...................... 42% 179% 103% 164% 163% 296%
<CAPTION>
U.S. Treasury Income Fund**
------------------------------------------------------------
Class B
------------------------------------------------------------
Year Ended
11/01/97 ----------------------------------- 11/04/93*
Through Through
04/30/98 10/31/97 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 ......... $ 11.25 $ 11.11 $ 11.37 $ 10.59 $ 11.98
-------- ------- ------- ------- --------
Income from Investment Operations:
Net Investment Income ...................... 0.317 0.580 0.571 0.621 0.592
Net Gain or (Losses) in Securities
(both realized and unrealized) ............ (0.041) 0.125 (0.265) 0.797 (1.187)
-------- ------- -------- ------- ---------
Total from Investment Operations ........... 0.276 0.705 0.306 1.418 (0.595)
-------- ------- -------- ------- ---------
Less Distributions:
Dividends from Net Investment Income 0.316 0.565 0.566 0.638 0.592
Distributions from Capital Gains ........... -- -- -- -- 0.203
-------- ------- -------- ------- ---------
Total Distributions ........................ 0.316 0.565 0.566 0.638 0.795
-------- ------- -------- ------- ---------
Net Asset Value, End of Period ............... $ 11.21 $ 11.25 $ 11.11 $ 11.37 $ 10.59
======== ======= ======== ======= =========
Total Return (1) 2.47% 6.56% 2.82% 13.80% (5.18%)
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ..... $ 11,115 $10,603 $ 10,764 $10,652 $ 5,184
Ratios to average net assets#:
Ratio of Expenses ........................... 1.64% 1.64% 1.64% 1.62% 1.50%
Ratio of Net Investment Income .............. 5.66% 5.24% 5.12% 5.53% 5.28%
Ratio of Expenses Without Waivers and
Assumption of Expenses ..................... 1.72% 1.71% 1.79% 1.89% 1.78%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses ........ 5.58% 5.17% 4.97% 5.26% 5.00%
Portfolio Turnover Rate ...................... 42% 179% 103% 164% 163%
</TABLE>
- -------
(1) Total return figures do not include the effect of any sales load.
* Commencement of offering class of shares.
# Short periods have been annualized.
** Formerly known as the Vista U.S. Government Income Fund.
See notes to financial statements.
43
<PAGE>
- --------------------------------------------------------------------------------
Chase Vista Funds
Financial Highlights (unaudited) (continued)
<TABLE>
<CAPTION>
U.S. Government Securities Fund
----------------------------------------------
Class A Class I
---------------------------------- -----------
11/01/97 Year 05/06/96** 11/01/97
Through Ended Through Through
04/30/98 10/31/97 10/31/96 04/30/98
---------- ---------- ------------ -----------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period .................................. $ 10.06 $ 9.90 $ 9.62 $ 10.04
-------- ------- ------ -------
Income from Investment Operations:
Net Investment Income ............................................... 0.231 0.580 0.259 0.240
Net Gains or Losses in Securities (both realized and unrealized) 0.023 0.146 0.255 0.024
-------- ------- ------ -------
Total from Investment Operations .................................... 0.254 0.726 0.514 0.264
-------- ------- ------ -------
Less Distributions:
Dividends from Net Investment Income ................................ 0.244 0.566 0.234 0.254
Distributions from Capital Gains .................................... -- -- --
-------- ------- -------
Total Distributions ................................................. 0.244 0.566 0.234 0.254
-------- ------- ------ -------
Net Asset Value, End of Period ........................................ $ 10.07 $ 10.06 $ 9.90 $ 10.05
======== ======= ====== =======
Total Return (1) ...................................................... 2.55% 7.61% 5.41% 2.65%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .............................. $ 2,390 $ 2,277 $3,333 $53,404
Ratios to average net assets#:
Ratio of Expenses .................................................... 0.85% 1.05% 1.05% 0.65%
Ratio of Net Investment Income ....................................... 4.95% 5.61% 5.30% 5.15%
Ratio of Expenses Without Waivers and Assumption of Expenses.......... 1.70% 1.57% 1.55% 1.00%
Ratio of Net Investment Income Without Waivers and
Assumptions of Expenses ............................................. 4.10% 5.09% 5.00% 4.80%
Portfolio Turnover Rate ............................................... 524% 569% 101% 524%
</TABLE>
<TABLE>
<CAPTION>
U.S. Government Securities Fund
--------------------------------------------------
Class I
--------------------------------------------------
Year 12/01/95(2) Year Ended
Ended Through -----------------------
10/31/97 10/31/96 11/30/95 11/30/94
----------- ------------- ----------- -----------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period .................................. $ 9.89 $ 10.18 $ 9.23 $ 10.27
------- -------- ------- -------
Income from Investment Operations:
Net Investment Income ............................................... 0.590 0.501 0.560 0.500
Net Gains or Losses in Securities (both realized and unrealized) 0.152 (0.302) 0.950 (0.940)
------- -------- ------- --------
Total from Investment Operations .................................... 0.742 0.199 1.510 (0.440)
------- -------- ------- --------
Less Distributions:
Dividends from Net Investment Income ................................ 0.591 0.489 0.560 0.500
Distributions from Capital Gains .................................... -- -- -- 0.100
------- -------- ------- --------
Total Distributions ................................................. 0.591 0.489 0.560 0.600
------- -------- ------- --------
Net Asset Value, End of Period ........................................ $ 10.04 $ 9.89 $ 10.18 $ 9.23
======= ======== ======= ========
Total Return (1) ...................................................... 7.78% 2.09% 16.82% 4.41%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .............................. $52,848 $ 67,980 $83,304 $ 83,649
Ratios to average net assets#:
Ratio of Expenses .................................................... 0.85% 0.85% 0.85% 0.85%
Ratio of Net Investment Income ....................................... 5.78% 5.55% 5.78% 5.15%
Ratio of Expenses Without Waivers and Assumption of Expenses.......... 0.91% 1.04% 1.11% 1.04%
Ratio of Net Investment Income Without Waivers and
Assumptions of Expenses ............................................. 5.72% 5.36% 5.52% 4.96%
Portfolio Turnover Rate ............................................... 569% 101% 220% 134%
</TABLE>
<TABLE>
<CAPTION>
U.S.
Government
Securities
Fund
----------
Class I
----------
02/19/93*
Through
11/30/93
----------
<S> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period .................................. $ 10.00
-------
Income from Investment Operations:
Net Investment Income ............................................... 0.340
Net Gains or Losses in Securities (both realized and unrealized) 0.270
-------
Total from Investment Operations .................................... 0.610
-------
Less Distributions:
Dividends from Net Investment Income ................................ 0.340
Distributions from Capital Gains .................................... --
-------
Total Distributions ................................................. 0.340
-------
Net Asset Value, End of Period ........................................ $ 10.27
=======
Total Return (1) ...................................................... 6.16%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .............................. $86,089
Ratios to average net assets#:
Ratio of Expenses .................................................... 0.85%
Ratio of Net Investment Income ....................................... 4.26%
Ratio of Expenses Without Waivers and Assumption of Expenses.......... 1.04%
Ratio of Net Investment Income Without Waivers and
Assumptions of Expenses ............................................. 4.07%
Portfolio Turnover Rate ............................................... 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.
44
<PAGE>
Chase Vista Funds
Financial Highlights (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Fund
------------------------------------------------------------------------
Class A Class B
------------------------------------ -----------------------------------
11/01/97 Year 05/06/96** 11/01/97 Year 05/06/96**
Through Ended Through Through Ended Through
04/30/98 10/31/97 10/31/96 04/30/98 10/31/97 10/31/96
----------- ----------- ------------ ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ............. $ 10.82 $ 10.71 $ 10.39 $ 10.87 $ 10.76 $ 10.39
-------- ------- ------- -------- ------- -------
Income from Investment Operations:
Net Investment Income .......................... 0.298 0.629 0.288 0.254 0.578 0.233
Net Gains or Losses in Securities
(both realized and unrealized) ................ (0.004) 0.330 0.310 (0.007) 0.323 0.368
-------- ------- -------- --------- -------- --------
Total from Investment Operations ............... 0.294 0.959 0.598 0.247 0.901 0.601
-------- ------- -------- --------- -------- --------
Less Distributions:
Dividends from Net Investment Income ........... 0.282 0.638 0.278 0.245 0.580 0.231
Distributions from Capital Gains ............... 0.142 0.210 -- 0.142 0.210 --
-------- ------- -------- --------- -------- --------
Total Distributions ............................ 0.424 0.848 0.278 0.387 0.790 0.231
-------- ------- -------- --------- -------- --------
Net Asset Value, End of Period ................... $ 10.69 $ 10.82 $ 10.71 $ 10.73 $ 10.87 $ 10.76
======== ======= ======== ========= ======== ========
Total Return (1) ................................. 2.76% 9.45% 5.95% 2.31% 8.32% 6.12%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ......... $ 31,899 $26,402 $ 988 $ 2,633 $ 1,447 $ 821
Ratios to average net assets#:
Ratio of Expenses ............................... 0.80% 0.92% 0.90% 1.60% 1.64% 1.65%
Ratio of Net Investment Income .................. 5.58% 6.11% 5.75% 4.78% 5.26% 4.97%
Ratio of Expenses Without Waivers and
Assumption of Expenses ......................... 1.56% 1.61% 2.39% 2.05% 2.07% 2.93%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses ............ 4.82% 5.42% 4.26% 4.33% 4.83% 3.69%
Portfolio Turnover Rate .......................... 97% 823% 122% 97% 823% 122%
<CAPTION>
Bond Fund
------------------------------------------------------------------------
Class I
------------------------------------------------------------------------
11/01/97 Year Ended
Through -------------------------------------------------------------
04/30/98 10/31/97 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 ............. $ 10.82 $ 10.71 $ 10.91 $ 10.08 $ 11.30 $ 10.76
-------- ------- ------- ------- -------- -------
Income from Investment Operations:
Net Investment Income .......................... 0.314 0.680 0.665 0.687 0.667 0.622
Net Gains or Losses in Securities
(both realized and unrealized) ................ (0.005) 0.324 (0.148) 0.854 (1.140) 0.679
-------- ------- -------- ------- -------- -------
Total from Investment Operations ............... 0.309 1.004 0.517 1.541 (0.473) 1.251
-------- ------- -------- ------- -------- -------
Less Distributions:
Dividends from Net Investment Income ........... 0.307 0.684 0.662 0.687 0.667 0.684
Distributions from Capital Gains ............... 0.142 0.210 0.055 0.024 0.081 0.026
-------- ------- -------- ------- -------- -------
Total Distributions ............................ 0.449 0.894 0.717 0.711 0.748 0.710
-------- ------- -------- ------- -------- -------
Net Asset Value, End of Period ................... $ 10.68 $ 10.82 $ 10.71 $ 10.91 $ 10.08 $ 11.30
======== ======= ======== ======= ======== =======
Total Return (1) ................................. 2.92% 9.93% 4.90% 15.83% (4.30%) 12.63%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ......... $ 18,312 $18,097 $ 17,777 $57,285 $ 52,439 $61,155
Ratios to average net assets#:
Ratio of Expenses ............................... 0.50% 0.50% 0.36% 0.31% 0.31% 0.31%
Ratio of Net Investment Income .................. 5.89% 6.42% 6.23% 6.56% 6.27% 6.15%
Ratio of Expenses Without Waivers and
Assumption of Expenses ......................... 1.20% 1.17% 0.87% 0.87% 0.92% 0.82%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses ............ 5.19% 5.75% 5.72% 6.00% 5.66% 5.64%
Portfolio Turnover Rate .......................... 97% 823% 122% 30% 17% 20%
</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.
45
<PAGE>
- --------------------------------------------------------------------------------
Chase Vista Funds
Financial Highlights (unaudited) (continued)
<TABLE>
<CAPTION>
Short-Term Bond Fund
------------------------------------------------
Institutional
Class A Class
------------------------------------ -----------
11/01/97 Year 05/06/96** 11/01/97
Through Ended Through Through
04/30/98 10/31/97 10/31/96 04/30/98
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period .................................. $ 10.10 $ 10.10 $ 10.03 $ 10.11
------- -------- ------- -------
Income from Investment Operations:
Net Investment Income ............................................... 0.273 0.580 0.262 0.294
Net Gains or Losses in Securities (both realized and unrealized) (0.051) (0.001) 0.072 (0.046)
-------- --------- -------- --------
Total from Investment Operations .................................... 0.222 0.579 0.334 0.248
-------- --------- -------- --------
Less Distributions:
Dividends from Net Investment Income ................................ 0.262 0.579 0.264 0.288
Distributions from Capital Gains .................................... -- -- -- --
-------- --------- -------- --------
Total Distributions ................................................. 0.262 0.579 0.264 0.288
-------- --------- -------- --------
Net Asset Value, End of Period ........................................ $ 10.06 $ 10.10 $ 10.10 $ 10.07
======== ========= ======== ========
Total Return (1) ...................................................... 1.77% 5.91% 3.41% 2.48%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .............................. $ 18,228 $ 9,847 $ 9,416 $ 37,123
Ratios to average net assets#:
Ratio of Expenses .................................................... 0.77% 0.75% 0.75% 0.41%
Ratio of Net Investment Income ....................................... 5.49% 5.76% 5.28% 5.86%
Ratio of Expenses Without Waivers and Assumption of
Expenses ............................................................ 1.51% 1.31% 1.45% 1.05%
Ratio of Net Investment Income Without Waivers and
Assumptions of Expenses ............................................. 4.75% 5.20% 4.58% 5.22%
Portfolio Turnover Rate ............................................... 197% 471% 158% 197%
</TABLE>
<TABLE>
<CAPTION>
Short-Term Bond Fund
------------------------------------------------
Institutional Class
------------------------------------------------
Year Ended
-----------------------------------------------
10/31/97 10/31/96 10/31/95 10/31/94
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period .................................. $ 10.12 $ 10.08 $ 9.91 $ 10.14
-------- ------- ------- --------
Income from Investment Operations:
Net Investment Income ............................................... 0.616 0.561 0.542 0.465
Net Gains or Losses in Securities (both realized and unrealized) (0.005) 0.035 0.168 (0.230)
-------- ------- ------- --------
Total from Investment Operations .................................... 0.611 0.596 0.710 0.235
-------- ------- ------- --------
Less Distributions:
Dividends from Net Investment Income ................................ 0.621 0556 0.542 0.465
Distributions from Capital Gains .................................... -- -- -- --
-------- ------- ------- --------
Total Distributions ................................................. 0.621 0.556 0.542 0.465
-------- ------- ------- --------
Net Asset Value, End of Period ........................................ $ 10.11 $ 10.12 $ 10.08 $ 9.91
======== ======= ======= ========
Total Return (1) ...................................................... 6.23% 6.10% 7.37% 2.38%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .............................. $ 37,788 $43,242 $36,246 $ 35,987
Ratios to average net assets#:
Ratio of Expenses .................................................... 0.42% 0.35% 0.37% 0.31%
Ratio of Net Investment Income ....................................... 6.08% 5.59% 5.41% 4.59%
Ratio of Expenses Without Waivers and Assumption of
Expenses ............................................................ 0.93% 0.89% 0.90% 0.86%
Ratio of Net Investment Income Without Waivers and
Assumptions of Expenses ............................................. 5.57% 5.05% 4.83% 4.05%
Portfolio Turnover Rate ............................................... 471% 158% 62% 44%
</TABLE>
<TABLE>
<CAPTION>
Short-Term
Bond Fund
-----------
Institutional
Class
-----------
Year Ended
-----------
10/31/93
-----------
<S> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period .................................. $ 10.26
-------
Income from Investment Operations:
Net Investment Income ............................................... 0.489
Net Gains or Losses in Securities (both realized and unrealized) (0.073)
--------
Total from Investment Operations .................................... 0.416
--------
Less Distributions:
Dividends from Net Investment Income ................................ 0.536
Distributions from Capital Gains .................................... --
--------
Total Distributions ................................................. 0.536
--------
Net Asset Value, End of Period ........................................ $ 10.14
========
Total Return (1) ...................................................... 4.73%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .............................. $ 70,963
Ratios to average net assets#:
Ratio of Expenses .................................................... 0.31%
Ratio of Net Investment Income ....................................... 5.25%
Ratio of Expenses Without Waivers and Assumption of
Expenses ............................................................ 0.70%
Ratio of Net Investment Income Without Waivers and
Assumptions of Expenses ............................................. 4.80%
Portfolio Turnover Rate ............................................... 17%
</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.
46
<PAGE>
Chase Vista Funds Service Center
P.O. BOX 419392
Kansas City, MO 64179
Investment Advisor, Administrator,
Shareholder and Fund Servicing Agent
and Custodian
The Chase Manhattan Bank
Distributor
Vista Fund Distribution, Inc.
Transfer Agent
DST Systems, Inc.
Legal Counsel
Simpson Thacher & Barlett
Independent Accountants
Price Waterhouse LLP
Chase Vista Funds are distributed by Vista Fund Distributors, Inc. which is
unaffiliated with The Chase Manhattan Bank. Chase and its respective affiliates
receive compensation from Chase 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 accompanied by a prospectus.
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.
To obtain a prospectus for any of the Chase 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.
June 1998 CVBND-3-498
