[CHASE VISTA FUNDS LOGO]
SEMI-ANNUAL REPORT
Chase Vista(SM). Setting the Global Standard.
CHASE VISTA GROWTH AND INCOME FUND
CHASE VISTA CAPITAL GROWTH FUND
CHASE VISTA EQUITY INCOME FUND
CHASE VISTA SMALL CAP OPPORTUNITIES FUND
April 30, 1998
(Unaudited)
EQUITY FUNDS
<PAGE>
HIGHLIGHTS
The U.S. stock market reached record levels as the U.S. economy continued to
grow despite Asia's financial crisis.
o In the U.S. stock market, low interest rates, good corporate earnings and
solid cash flows prevailed.
o Bonds posted modest gains as interest rates stabilized and inflation
continued to remain under control.
<TABLE>
<CAPTION>
CONTENTS
<S> <C>
Chairman's Letter 3
Chase Vista Growth and Income Fund
Fund Commentary 4
Chase Vista Capital Growth Fund
Fund Commentary 8
Chase Vista Equity Income Fund
Fund Commentary 12
Chase Vista Small Cap Opportunities Fund
Fund Commentary 16
Fund Financial Statements 19
Portfolio Financial Statements 50
</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>
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
U.S. Equity Funds for the six month period ended April 30, 1998:
<TABLE>
<S> <C>
[bullet] Growth and Income Fund [bullet] Capital Growth Fund
[bullet] Equity Income Fund [bullet] Small Cap Opportunities Fund
</TABLE>
Stocks Posted Solid Gains as the Economy Continued to Grow
The stock market recorded strong performance as the economy continued to grow
at a healthy pace and inflation remained under control. Other factors that
contributed to the market's investment results included low interest rates,
good corporate earnings and solid cash flows into equity mutual funds.
Early in the period, the potential impact of the Asian economic crisis put
pressure on U.S. stocks. However, the U.S. economy continued to grow despite
Asia's economic woes. In January, the stock market stalled again, as investors
worried about the market's future prospects, however, equities bounced back
again in February, as the Dow Jones Industrial Average plowed through 9,000 and
finished the period hovering near an all-time record level.
Bonds Posted Modest Gains as Interest Rates Stabilized
Bonds registered modest investment results in an environment that saw the U.S.
economy strengthen but inflation continue to remain under control.
The period began with worry about the impact of the Asian crisis on global
economic growth. But when the shock of the Asian crisis subsided toward the end
of 1997, investors re-focused their attention on the U.S. economy. Bonds
performed well in January, despite the strongest Employment Cost Index (ECI)
report in five years. In February, several reports that suggested the economy
was overheating drove bond prices down. However, the market rebounded, and
interest rates stayed in a relatively narrow range, thanks partly to two
opposing forces: deflation concerns ignited by the Asian crisis and higher
inflation concerns due to the U.S. economy's better-than-expected performance.
Overall, it was another strong period for those invested in the U.S. stock
market. As always, all of us at Chase Vista encourage you to maintain your
investing discipline in the months and years ahead.
Sincerely,
/s/ Fergus Reid
Fergus Reid
Chairman
3
<PAGE>
Unaudited
About Your Fund
CHASE VISTA GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
FUND FACTS
<TABLE>
<S> <C> <C> <C> <C>
Objective: Capital Growth Plus Current Income
Primary investments: Common Stocks
Suggested investment
time frame: Mid- to Long-Term
Market benchmark: S&P 500 Index
Lipper Funds category: Growth & Income Funds Average
Class A Class B Class C Class I
---------------- -------------- ------------- ------------
Inception date: 9/23/87 11/4/93 1/2/98 1/25/96
Newspaper symbol: Gro Inc Gro Inc Not listed Gro Inc
As of April 30, 1998
Net assets: $1,680.6 mil. $590.0 mil. $1.4 mil. $28.2 mil.
</TABLE>
PERFORMANCE
Chase Vista Growth and Income Fund had a total return of 17.90% (Class A shares,
without sales charges) for the six-month period ended April 30, 1998, beating
the Lipper Growth and Income Funds Average, which returned 17.40%.
STRATEGY
The Fund's investment strategy in the face of the Asian economic crisis
contributed significantly to its performance. Early in the period, as Asia's
economic woes weighed heavily on global equity markets, technology stocks
declined sharply as investors grew concerned about their earnings prospects.
The Fund used this sell-off in technology stocks to increase its exposure to
select stocks in this sector. This strategy proved favorable for shareholders
as many technology stocks rebounded and subsequently recorded strong investment
results.
Another strategy that helped performance was the Fund's decision to decrease
its exposure to economically sensitive stocks, such as energy, chemicals and
paper stocks, and increase its position in defensive stocks, such as
supermarkets, retails and utilities. In late 1997, investors bid up the prices
of defensive stocks and sold off economically sensitive issues in response to
the Asian turmoil.
Beginning in 1998, the Fund took advantage of the weakness in economically
sensitive stocks to increase its position in attractively priced energy and
basic industry stocks. The Fund also took profits on several of its holdings in
the pharmaceutical sector and increased
4
<PAGE>
Unaudited
About Your Fund
CHASE VISTA GROWTH AND INCOME FUND
its exposure to undervalued Health Maintenance Organization (HMO) stocks with
good relative fundamentals. By the end of the period, several of the Fund's
economically sensitive stocks benefited from the strength of the domestic
economy, and several HMOs rallied due to investor recognition of their
attractive valuations.
OUTLOOK
In the months ahead, we expect the economy to show signs of slowing.
Additionally, we believe the Asian crisis may have some impact on corporate
earnings. Given this forecast, stock selection will be critical and we expect
to focus on undervalued companies with a catalyst for improved performance.
Examples include companies selling unprofitable businesses, reducing costs or
introducing a new product or service. We also expect to look for stocks in
sectors that have lagged the market, such as energy, basic materials and
utilities.
CHASE VISTA GROWTH AND INCOME FUND
COMPOSITION OF TOTAL ASSETS AS OF 4/30/98
Cash/Other 0.2%
Investments 99.8%
CHASE VISTA GROWTH AND INCOME PORTFOLIO
COMPOSITION OF TOTAL MARKET VALUE AS OF 4/30/98
Other 4.5% Basic Industry 8.8%
REITs 2.9% Capital Goods 12.5%
Utilities 6.4% Consumer Cyclicals 13.0%
Technology 11.7% Consumer Staples 5.2%
Health Care 11.3% Energy 7.2%
Financial 16.6%
5
<PAGE>
Unaudited
About Your Fund
CHASE VISTA GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
PORTFOLIO'S TOP 10 HOLDINGS AS OF 4/30/98
<TABLE>
<S> <C>
EMC Corp.* 2.22%
Computer Associates Intl. 1.98%
HEALTHSOUTH Corporation 1.86%
Xerox Corp. 1.66%
Dow Chemical Co. 1.59%
Deutsche Bank AG (Germany)* 1.58%
Texaco, Inc. 1.44%
Mobil Corp. 1.34%
Philip Morris Companies, Inc . 1.33%
Canadian Pacific, Ltd. 1.31%
</TABLE>
Top 10 holdings comprised 16.31% of the Portfolio's market value of
investments. Fund holdings are subject to change at any time. *A non-equity
security holding.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FUND'S AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/98+
Class A Shares Without Sales Charge With Sales Charge
<S> <C> <C>
One Year 37.97% 30.04%
Five Years 18.08% 16.69%
Ten Years 23.99% 23.26%
Class B Shares Without CDSC With CDSC*
One Year 37.26% 32.26%
Five Years+ 17.54% 17.33%
Ten Years+ 23.70% 23.70%
Class C Shares Without CDSC With CDSC**
One Year+ 34.96% 33.96%
Five Years+ 17.14% 17.14%
Ten Years+ 23.50% 23.50%
Class I Shares
One Year 38.40%
Five Years+ 18.28%
Ten Years+ 24.10%
</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.
Sales Charge for Class A Shares is 5.75%.
* Assumes 5% CDSC for the one year period, a 2% CDSC for the five year period
and a 0% CDSC for the period since inception.
** Assumes 1% CDSC.
+ The Fund commenced operations on 9/23/87. Class B Shares, Class C Shares and
Class I Shares were introduced on 11/4/93, 1/2/98 and 1/25/96, respectively.
Investors should note that the information presented for Class B, Class C and
Class I 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 and Class C Shares and higher than Class I Shares. Additionally,
annualized figures have been restated to reflect the maximum 5% contingent
deferred sales charge (CDSC) that applies to the Fund's B Shares and 1% CDSC
that applies to the Fund's C Shares.
6
<PAGE>
Unaudited
About Your Fund
CHASE VISTA GROWTH AND INCOME FUND
GROWTH OF HYPOTHETICAL $10,000 INVESTMENT IN
CHASE VISTA GROWTH AND INCOME FUND--CLASS A
AND ITS KEY BENCHMARKS
<TABLE>
<CAPTION>
Chase Vista Growth Lipper Growth S&P
and Income Fund & Income Funds Avg. 500 Index
--------------- ------------------- ---------
<S> <C> <C> <C>
4/88 9,525 10,000 10,000
4/89 13,963 11,874 12,289
4/90 18,961 12,626 13,582
4/91 24,659 14,501 15,970
4/92 31,128 16,587 18,205
4/93 35,658 18,260 19,886
4/94 37,198 19,440 20,945
4/95 40,521 21,790 24,593
4/96 50,941 27,687 32,013
4/97 59,349 32,569 40,049
4/30/98 81,884 44,365 56,489
</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 Growth & Income Fund, the Lipper Growth & Income Funds
Average and the Standard & Poor's 500 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 5.75% sales charge. The performance of the average
and the index does not include a sales charge and has been adjusted to reflect
reinvestment of all dividends and capital gains on the securities included in
the benchmark.
The Lipper Growth & Income Funds Average represents the average performance of
a universe of 747 actively managed growth and 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 Standard and Poor's 500 Index is a broad-based index that is generally
considered representative of the U.S. stock market. The index is unmanaged and
reflects the reinvestment of dividends. An individual cannot invest directly in
the index.
7
<PAGE>
Unaudited
About Your Fund
CHASE VISTA CAPITAL GROWTH FUND
- --------------------------------------------------------------------------------
FUND FACTS
<TABLE>
<S> <C> <C> <C> <C>
Objective: Capital Growth
Primary investments: Mid-Size Common Stocks
Suggested investment
time frame: Long-Term
Market benchmark: Russell 2000 Index
Lipper Funds category: Mid-Cap Funds Average
Class A Class B Class C Class I
-------------- -------------- ------------- ------------
Inception date: 9/23/87 11/4/93 1/2/98 1/25/96
Newspaper symbol: Cap Gro Cap Gro Not listed Cap Gro
As of April 30, 1998
Net assets: $936.1 mil. $505.7 mil. $1.0 mil. $83.1 mil.
</TABLE>
PERFORMANCE
Chase Vista Capital Growth Fund had a total return of 19.34% (Class A shares,
without sales charges) for the six-month period ended April 30, 1998, beating
the Lipper Mid Cap Funds Average, which returned 14.40%.
STRATEGY
The Fund's outstanding performance was largely due to superior stock selection
and prudent sector allocation decisions. Some of the Fund's better performing
stocks included CMAC, a private mortgage insurer; Lear Corporation, an auto
parts supplier; and Carnival Corp., the world's largest cruise operator.
The Fund entered the period with low exposure to technology and other
economically sensitive securities. This proved successful as technology stocks
underperformed the market late in 1997 due to the Asian crisis. In early 1998,
the Fund redeployed assets in the technology sector to take advantage of
fundamentally sound companies selling at favorable prices. These stocks bounced
back so strongly that the Fund again reduced its exposure to the sector by the
end of the period.
The financial sector also contributed to performance. Financial stocks
benefited from the wave of merger activity and improving earnings. The Fund's
overweighting in consumer cyclical stocks, also helped performance,
particularly in late 1997. While energy stocks did not contribute significantly
to performance, the Fund took advantage of the price weakness in this sector to
increase its exposure to attractively priced oil service stocks.
8
<PAGE>
Unaudited
About Your Fund
CHASE VISTA CAPITAL GROWTH FUND
OUTLOOK
We remain optimistic that good values can still be found, but, in our opinion,
the economy appears ready to take a breather. We also expect the Asian crisis
to have a slightly greater impact on U.S. corporate earnings than they've had
so far. In anticipation of these events, the Fund has been positioned in
companies we believe have good prospects of outperforming in an environment of
slower-than-expected economic growth.
CHASE VISTA CAPITAL GROWTH FUND
COMPOSITION OF TOTAL ASSETS AS OF 4/30/98
Cash/Other 1.4%
Investments 98.6%
CHASE VISTA CAPITAL GROWTH PORTFOLIO
COMPOSITION OF TOTAL MARKET VALUE AS OF 4/30/98
<TABLE>
<CAPTION>
<S> <C> <C>
Other 7.0% Basic Industry 2.0%
REITs 3.5% Capital Goods 11.2%
Utilities 2.3% Consumer Cyclicals 17.4%
Transportation 0.5% Consumer Staples 1.1%
Technology 18.3% Energy 3.4%
Health Care 12.8% Financial 20.5%
</TABLE>
9
<PAGE>
Unaudited
About Your Fund
CHASE VISTA CAPITAL GROWTH FUND
- --------------------------------------------------------------------------------
PORTFOLIO'S TOP 10 HOLDINGS AS OF 4/30/98
<TABLE>
<S> <C>
Deutsche Bank AG (Germany)* 3.24%
Tele Communications Inc. Liberty
Media Group (Class A) 2.47%
Tenet Healthcare Corp. 2.45%
GTECH Holdings Corp. 2.37%
Wellpoint Health Networks, Inc. 2.15%
EMC Corp. 2.14%
Precision Castparts Corp. 2.13%
Sundstrand Corp. 2.00%
Interim Services, Inc. 1.94%
Zions Bancorporation 1.78%
</TABLE>
Top 10 holdings comprised 22.67% the Portfolio's market value of the
investments.
Fund holdings are subject to change at any time. *A non-equity security
holding.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FUND'S AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/98+
Class A Shares Without Sales Charge With Sales Charge
<S> <C> <C>
One Year 44.11% 35.82%
Five Years 19.54% 18.14%
Ten Years 22.06% 21.34%
Class B Shares Without CDSC With CDSC*
One Year 43.39% 38.39%
Five Years+ 19.02% 18.82%
Ten Years+ 21.79% 21.79%
Class C Shares Without CDSC With CDSC**
One Year+ 42.16% 41.16%
Five Years+ 18.82% 18.82%
Ten Years+ 21.69% 21.69%
Class I Shares
One Year 44.67%
Five Years+ 19.76%
Ten Years+ 22.16%
</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.
Sales charge for Class A Shares is 5.75%.
* Assumes a 5% CDSC for the one year period, a 2% CDSC for the five year period
and a 0% CDSC for the period since inception.
** Assumes a 1% CDSC.
+ The Fund commenced operations on 9/23/87. Class B Shares, Class C Shares and
Class I Shares were introduced on 11/4/93, 1/2/98 and 1/25/96, respectively.
Investors should note that the information presented for Class B, Class C and
Class I 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 and Class C Shares and higher than Class I Shares. Additionally,
annualized figures have been restated to reflect the maximum 5% contingent
deferred sales charge (CDSC) that applies to the Fund's B Shares and 1% CDSC
that applies to the Fund's C Shares.
10
<PAGE>
Unaudited
About Your Fund
CHASE VISTA CAPITAL GROWTH FUND
GROWTH OF HYPOTHETICAL $10,000 INVESTMENT IN
CHASE VISTA CAPITAL GROWTH FUND--CLASS A
AND ITS KEY BENCHMARKS
<TABLE>
<CAPTION>
Chase Vista Capital Lipper Mid-Cap Russell
Growth Fund Funds Avg. 2000 Index
--------------- ------------------- ---------
<S> <C> <C> <C>
4/88 9,525 10,000 10,000
4/89 13,361 11,850 11,539
4/90 14,646 12,740 11,284
4/91 17,303 15,518 12,433
4/92 24,268 18,311 14,554
4/93 28,649 20,443 16,848
4/94 32,811 23,155 19,336
4/95 35,180 25,545 20,734
4/96 43,682 34,577 27,587
4/97 48,558 34,634 27,605
4/30/98 69,975 49,382 39,308
</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 Capital Growth Fund, the Lipper Mid-Cap Funds Average and
the Russell 2000 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 5.75% sales charge. The performance of the average and the index does
not include a sales charge and has been adjusted to reflect reinvestment of all
dividends and capital gains on the securities included in the benchmark.
The Lipper Mid-Cap Funds Average represents the average performance of a
universe of 319 actively managed mid-cap funds. Lipper is an independent mutual
fund performance monitor whose results are based on total return and do not
reflect a sales charge.
The Russell 2000 Index tracks the shares of 2,000 small-capitalization
companies. The index is unmanaged and reflects the reinvestment of dividends.
An individual cannot invest directly in the index.
11
<PAGE>
Unaudited
About Your Fund
CHASE VISTA EQUITY INCOME FUND
- --------------------------------------------------------------------------------
FUND FACTS
<TABLE>
<S> <C> <C> <C>
Objective: Current Income Plus Capital Growth
Primary investments: Common Stocks
Suggested investment
time frame: Mid- to Long-Term
Market benchmark: S&P 500 Index
Lipper Funds category: Equity Income Funds Average
Class A Class B Class C
---------------- ---------------- --------------
Inception date: 7/15/93 5/7/96 1/8/98
Newspaper symbol: Eq Inc Not listed Not listed
As of April 30, 1998
Net assets: $74.3 million $24.4 million $3.0 million
</TABLE>
PERFORMANCE
Chase Vista Equity Income Fund had a total return of 13.40% (Class A shares,
without sales charges) for the six-month period ended April 30, 1998. This
compares to 16.32% for the Lipper Equity Income Funds Average.
STRATEGY
Early in the period, the Fund's focus on defensive stocks, such as real estate
investment trusts (REITs) and utilities, contributed positively to performance
in a challenging environment brought on by the Asian financial crisis. The Fund
also enjoyed strong investment results from companies in the cable and finance
sectors, especially with its holdings in Telecommunications Inc. and Liberty
Media. A number of our holdings in the financial sector performed well due to
the wave of merger and acquisition activity in the industry and improving
corporate earnings.
The defensive strategy that worked well for the Fund in late 1997 proved to be a
drag on performance in the first few months of 1998, as the stock market enjoyed
strong investment results. During the market's rally, the Fund became less
defensive, using cash reserves to add to quality companies that experienced
price weakness. These included Zions Bancorp, Ford and several REITs with
attractive yields compared to the market. This strategy helped performance
towards the end of the period.
12
<PAGE>
Unaudited
About Your Fund
CHASE VISTA EQUITY INCOME FUND
OUTLOOK
Due to the length of the current economic expansion and the threat still posed
by the Asian economic crisis, the Fund expects to remain positioned for a
gradually slowing economy. It expects to invest a significant percent of assets
in interest-rate sensitive stocks, such as banks, financial services, bonds,
REITs and utilities. Additionally, with strong economic growth in Europe, the
Fund expects to maintain its exposure to multinational companies with
meaningful business on the continent.
CHASE VISTA EQUITY INCOME FUND
COMPOSITION OF TOTAL ASSETS AS OF 4/30/98
Cash/Other 1.4%
Investments 98.8%
CHASE VISTA EQUITY INCOME FUND
COMPOSITION OF MARKET VALUE OF INVESTMENTS AS OF 4/30/98
<TABLE>
<CAPTION>
<S> <C> <C>
Other 2.0% Basic Industry 7.8%
REITs 11.3% Capital Goods 6.3%
Utilities 3.9% Consumer Cyclicals 7.8%
Technology 11.3% Consumer Staples 0.9%
Health Care 9.3% Energy 9.1%
Financial 30.2%
</TABLE>
13
<PAGE>
Unaudited
About Your Fund
CHASE VISTA EQUITY INCOME FUND
- --------------------------------------------------------------------------------
TOP 10 HOLDINGS AS OF 4/30/98
<TABLE>
<S> <C>
Deutsche Bank AG (Germany)* 9.78%
Zions Bancorporation 2.11%
Columbia/HCA Healthcare Corp . 2.03%
Sundstrand Corp. 1.91%
Halliburton Company 1.82%
Precision Castparts Corp. 1.77%
K-Mart Financing Inc. 1.74%
British Petroleum PLC, ADR
(United Kingdom) 1.69%
Allstate Corp. 1.63%
American Home Products 1.50%
</TABLE>
Top 10 holdings comprised 25.98% of Fund's market value of investments. Fund
holdings are subject to change at any time. *A non-equity security holding.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/98+
Class A Shares Without Sales Charge With Sales Charge
<S> <C> <C>
One Year 34.45% 26.72%
Five Years N/A N/A
Since Inception (7/15/93) 20.29% 18.81%
Class B Shares Without CDSC With CDSC*
One Year 33.77% 28.77%
Five Years+ N/A N/A
Since Inception (7/15/93)+ 19.97% 19.65%
Class C Shares Without CDSC With CDSC**
One Year 33.89% 32.89%
Five Years+ N/A N/A
Since Inception (7/15/93)+ 19.99% 19.89%
</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.
** Assumes 1% CDSC.
Certain fees on the Fund were waived during the periods shown. Had they not
been waived, returns would have been lower.
Sales charge for Class A Shares is 5.75%.
* Assumes 5% CDSC for the one year period, and a 3% CDSC for the period since
inception.
+ The Fund commenced operations on 7/15/93. Class B Shares and Class C Shares
were introduced on 5/7/96 and 1/8/98, respectively. Investors should note that
the information presented for Class B and Class C 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 and Class C
Shares. Additionally, annualized figures have been restated to reflect the
maximum 5% contingent deferred sales charge (CDSC) that applies to the Fund's B
Shares and 1% CDSC that applies to the Fund's C Shares.
14
<PAGE>
Unaudited
About Your Fund
CHASE VISTA EQUITY INCOME FUND
GROWTH OF HYPOTHETICAL $10,000 INVESTMENT IN
CHASE VISTA EQUITY INCOME FUND--CLASS A
AND ITS KEY BENCHMARKS
<TABLE>
<CAPTION>
Chase Vista Equity Lipper Equity S&P
Income Fund Income Funds Avg. 500 Index
--------------- ------------------- ---------
<S> <C> <C> <C>
7/93 9,550 10,000 10,000
4/94 9,743 10,309 10,229
4/95 10,453 11,421 12,011
4/96 14,031 14,280 15,634
4/97 17,224 16,751 19,559
4/30/98 23,157 22,507 27,588
</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 Equity Income Fund, the Lipper Equity Income Funds Average
and the S&P 500 Index from July 15, 1993 to April 30, 1998. The performance of
the Fund assumes the reinvestment of all dividends and capital gains and
includes a 5.75% sales charge. The performance of the average and the index does
not include a sales charge and has been adjusted to reflect reinvestment of all
dividends and capital gains on the securities included in the benchmark.
Certain fees on the Fund were waived during the periods shown. Had they not
been waived, returns would have been lower.
The Lipper Equity Income Funds Average represents the average performance of a
universe of 221 actively managed equity 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 Standard & Poor's 500 Index is a broad-based index that is generally
considered representative of the U.S. stock market. The index is unmanaged and
reflects reinvestment of dividends. An individual cannot invest directly in the
index.
15
<PAGE>
Unaudited
About Your Fund
CHASE VISTA SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
FUND FACTS
<TABLE>
<S> <C> <C> <C>
Objective: Capital Growth
Primary investments: Small Cap Common Stocks
Suggested investment
time frame: Long-Term
Market benchmark: Russell 2000 Index
Lipper Funds category: Small Company Growth Funds Average
Class A Class B Class C
---------------- ---------------- --------------
Inception date: 5/19/97 5/19/97 1/8/98
Newspaper symbol: SCapOp SCapOp Not listed
As of April 30, 1998
Net assets: $67.0 million $61.3 million $1.3 million
</TABLE>
PERFORMANCE
Chase Vista Small Cap Opportunities Fund had a total return of 14.44% (Class A
shares, without sales charges) for the six-month period ended April 30, 1998,
beating the Lipper Small Company Growth Funds Average, which returned 11.07%.
STRATEGY
Due to the Asian financial crisis, the period started slowly for the Fund, as
value-oriented and defensive equities outperformed smaller stocks. Good stock
selection in the financial sector helped performance. Two of the Fund's better
performers in this industry group were American Bankers International and Zions
Bancorp. The Fund also benefited from several holdings in the consumer and
health care sectors, which included Heftel Broadcasting and Universal Health
Care.
The management team used the pullback in small stocks to increase its exposure
to quality companies with attractive valuations. The Fund found many of these
stocks in the technology sector, which was one of the hardest hit groups early
in the period. This strategy benefited shareholders significantly as technology
stocks rebounded early in 1998 and rallied again just before the end of the
period. During the last half of the period, the Fund also recorded gains from
its overweighted exposure to consumer cyclical and financial services stocks,
which benefited from a healthy economy and declining interest rates.
16
<PAGE>
Unaudited
About Your Fund
CHASE VISTA SMALL CAP OPPORTUNITIES FUND
OUTLOOK
Our outlook for small cap stocks is favorable. Small and large cap stocks
typically go through periods where one outperforms the other. Large cap stocks
have held leadership for approximately four years, but we believe that small
stocks, as evidenced by their strong relative performance in the final three
months of the period, may be poised for a strong rally. Indeed, the valuations
on small caps, on balance, are attractive compared to their large cap
counterparts. Moreover, their earnings growth potential appears to be better,
as well. However, with Asia's economic woes still posing a threat to corporate
earnings prospects, stock selection will be the key to superior investment
results in the months ahead.
CHASE VISTA SMALL CAP OPPORTUNITIES FUND
COMPOSITION OF TOTAL ASSETS AS OF 4/30/98
Cash/Other 1.5%
Investments 98.5%
CHASE VISTA SMALL CAP OPPORTUNITIES FUND
COMPOSITION OF TOTAL MARKET VALUE OF INVESTMENTS AS OF 4/30/98
<TABLE>
<CAPTION>
<S> <C> <C>
Other 7.1% Basic Industry 2.0%
REITs 0.4% Capital Goods 4.5%
Transportation 2.8% Consumer Cyclicals 23.2%
Technology 20.1% Consumer Staples 1.0%
Health Care 16.6% Energy 3.6%
Financial 18.7%
</TABLE>
17
<PAGE>
Unaudited
About Your Fund
CHASE VISTA SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
TOP 10 HOLDINGS AS OF 4/30/98
<TABLE>
<S> <C>
Deutsche Bank AG (Germany)* 8.83%
Ventana Medical Systems, Inc. 1.72%
Healthcare Financial Partners, Inc . 1.68%
Newpark Resources, Inc. 1.58%
MRV Communications Inc. 1.58%
United Dominion Industries, Ltd. 1.57%
Coach USA, Inc. 1.55%
Allied Waste Industries, Inc. 1.48%
Chancellor Media Corp. 1.46%
PMT Services, Inc. 1.44%
</TABLE>
Top 10 holdings comprised 22.89% of Fund's market value of investments. Fund
holdings are subject to change at any time. *A non-equity security holding.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CUMULATIVE TOTAL RETURNS AS OF 4/30/98+
<S> <C> <C>
Without With
Class A Shares Sales Charge Sales Charge
Since Inception (5/19/97) 58.50% 49.39%
Class B Shares Without CDSC With CDSC*
Since Inception (5/19/97) 57.50% 52.30%
Class C Shares Without CDSC With CDSC**
Since Inception (5/19/97)+ 57.40% 56.40%
</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.
Sales Charge for Class A Shares is 5.75%.
* Assumes 5% CDSC for the period since inception.
** Assumes 1% CDSC.
+ The Fund commenced operations on 5/19/97. Class A and B Shares were
introduced on 5/19/97. Class C Shares were introduced on 1/8/98. Investors
should note that the information presented for Class C Shares prior to their
introduction is based upon historical expenses of the predecessor Class A
Shares, which are lower than the actual expenses of the C Shares. Additionally,
annualized figures have been restated to reflect the maximum 1% contingent
deferred sales charge that applies to the Fund's C Shares.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
Small capitalization funds typically carry more risk than stock funds investing
in well-established "blue chip" companies since smaller companies generally
have a higher risk of failure. Historically, smaller companies' stock has
experienced a greater degree of market volatility than the average stock.
18
<PAGE>
Chase Vista Equity Income Fund
Portfolio of Investments April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------- ------------------------------------ --------------
<S> <C> <C>
Long-Term Investments -- 93.5%
- ----------------------------------------------------------------
Common Stock -- 84.8%
------------------------------------
Aerospace -- 5.4%
37,000 General Dynamics Corp. $ 1,563,250
30,000 Precision Castparts Corp. 1,863,750
29,200 Sundstrand Corp. 2,016,625
-----------
5,443,625
-----------
Automotive -- 3.7%
31,000 Chrysler Corp. 1,245,813
20,000 Ford Motor Co. 916,250
29,000 Lear Corp.* 1,553,313
-----------
3,715,376
-----------
Banking -- 8.2%
11,500 BankAmerica Corp. 977,500
17,000 BB&T Corporation 1,143,250
20,000 Cullen/Frost Bankers, Inc. 1,170,000
20,000 National City Corp. 1,385,000
15,000 Southwest Bancorp of Texas 600,000
7,000 U.S. Bancorp 889,000
43,517 Zions Bancorporation 2,224,807
-----------
8,389,557
-----------
Broadcasting -- 1.1%
33,750 Tele-Communications, Inc., Liberty
Media Group, Class A* 1,120,078
-----------
Business Services -- 0.7%
20,900 GTECH Holdings Corp.* 749,788
-----------
Chemicals -- 1.9%
16,000 Crompton & Knowles Corporation 479,000
10,000 Dow Chemical Co. 966,875
25,000 Engelhard Corporation 528,125
-----------
1,974,000
-----------
Computer Software -- 0.9%
15,000 Computer Associates International 878,438
-----------
Computers/Computer Hardware -- 3.3%
45,000 Bay Networks, Inc.* 1,054,688
20,000 Quantum Corp.* 470,000
21,000 Sun Microsystems, Inc.* 864,938
32,000 Symantec Corp.* 928,000
-----------
3,317,626
-----------
</TABLE>
See notes to financial statements.
19
<PAGE>
Chase Vista Equity Income Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------- ------------------------------------- --------------
<S> <C> <C>
Long-Term Investments -- (continued)
- -----------------------------------------------------------------
Construction -- 0.9%
20,000 J. Ray McDermott, SA* $ 887,500
-----------
Consumer Products -- 1.0%
35,000 RJR Nabisco Holdings Corp. 973,438
-----------
Entertainment/Leisure -- 1.0%
14,000 Carnival Corp., Class A 973,875
-----------
Financial Services -- 3.6%
15,000 American Express Co. 1,530,000
13,931 Associates First Capital Corp. 1,041,342
25,000 Federal Home Loan Mortgage Corp. 1,157,813
-----------
3,729,155
-----------
Health Care/Health Care
Services -- 4.7%
65,000 Columbia/HCA Healthcare Corp. 2,140,938
39,000 Foundation Health Systems, Inc.* 1,128,563
16,000 Tenet Healthcare Corp.* 599,000
30,000 Trigon Healthcare, Inc.* 911,250
-----------
4,779,751
-----------
Insurance -- 6.4%
17,900 Allstate Corp. 1,722,875
4,200 CMAC Investment Corp. 271,163
13,000 Exel Ltd. (Bermuda) 970,938
5,000 Loews Corp. 500,313
20,000 Mercury General Corp. 1,295,000
10,700 Nationwide Financial Services, Inc.,
Class A 464,113
47,000 Reliance Group Holdings, Inc. 813,688
8,000 Travelers, Inc. 489,500
-----------
6,527,590
-----------
Machinery & Engineering
Equipment -- 1.2%
30,000 McDermott International, Inc. 1,241,250
-----------
Metals/Mining -- 1.3%
12,000 Reynolds Metals Company 792,000
10,000 RIO Tinto PLC (United Kingdom) 582,500
-----------
1,374,500
-----------
</TABLE>
See notes to financial statements.
20
<PAGE>
Chase Vista Equity Income Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------- -------------------------------------- --------------
<S> <C> <C>
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
Oil & Gas -- 9.5%
15,000 Baker Hughes Inc. $ 607,500
18,848 British Petroleum PLC, ADR
(United Kingdom) 1,781,136
10,000 Elf Aquitaine SA, ADR (France) 649,375
14,500 ENI SPA, ADR (Italy) 958,813
45,500 Enterprise Oil PLC (ADR)
(United Kingdom) 1,268,313
18,000 Exxon Corp. 1,312,875
35,000 Halliburton Company 1,925,000
20,000 Royal Dutch Petroleum Co.,
New York Registered Shares
(Netherlands) 1,131,250
-----------
9,634,262
-----------
Packaging -- 1.2%
15,000 Ball Corp. 579,375
15,000 Owens-Illinois, Inc.* 593,438
-----------
1,172,813
-----------
Paper/Forest Products -- 1.4%
15,000 Weyerhaeuser Co. 864,375
15,000 Willamette Industries, Inc. 582,188
-----------
1,446,563
-----------
Pharmaceuticals -- 3.3%
17,000 American Home Products Corp. 1,583,125
20,200 Pharmacia & Upjohn, Inc. 849,663
12,000 Schering-Plough Corp. 961,500
-----------
3,394,288
-----------
Printing & Publishing -- 0.4%
12,500 Dun & Bradstreet Corp. 443,750
-----------
Real Estate Investment Trust -- 11.7%
23,000 Arden Realty Group, Inc. 645,438
50,000 Beacon Capital Partners#* 1,000,000
20,000 Boston Properties, Inc.* 661,250
38,900 Brandywine Realty Trust 884,975
31,600 Duke Realty Investments, Inc. 752,475
27,406 Equity Office Properties Trust 779,358
24,000 Equity Residential Properties Trust 1,179,000
</TABLE>
See notes to financial statements.
21
<PAGE>
Chase Vista Equity Income Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------- --------------------------------------- --------------
<S> <C> <C>
Long-Term Investments -- (continued)
- -------------------------------------------------------------------
25,000 Essex Property Trust, Inc. $ 825,000
35,000 Healthcare Realty Trust, Inc. 984,375
26,000 Manufactured Home Communities,
Inc. 656,500
26,000 Public Storage, Inc. 799,500
36,000 Reckson Associates Realty
Corporation 882,000
24,000 Security Capital Group Inc., Class B* 726,000
4,900 Security Capital Pacific Trust 109,638
15,000 Spieker Properties, Inc. 594,375
9,000 Starwood Lodging Trust 451,688
-----------
11,931,572
-----------
Retailing -- 1.6%
16,000 The Limited, Inc. 537,000
25,000 TJX Companies, Inc. 1,106,250
-----------
1,643,250
-----------
Telecommunications -- 6.3%
20,000 AT&T Corp. 1,201,250
12,000 Bell Atlantic Corp. 1,122,750
18,000 BellSouth Corp. 1,155,375
22,000 SBC Communications, Inc. 911,625
9,000 Telecomunicacoes Brasileiros SA,
ADR (Brazil) 1,096,313
22,000 WorldCom, Inc.* 941,188
-----------
6,428,501
-----------
Utilities -- 4.1%
20,000 CMS Energy Corp. 873,750
12,000 FPL Group Inc. 744,750
25,000 GPU, Inc. 990,625
20,000 LG&E Energy Corporation 530,000
5,000 PacifiCorp 116,250
20,000 Pinnacle West Capital Corp. 885,000
-----------
4,140,375
-----------
Total Common Stock 86,310,921
(Cost $77,509,924) -----------
</TABLE>
See notes to financial statements.
22
<PAGE>
Chase Vista Equity Income Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------- ----------------------------------------- --------------
<S> <C> <C>
Long-Term Investments -- (continued)
- -----------------------------------------------------------------------------
Warrants -- 0.0%
---------------------------------------------------------
Real Estate Investment Trust -- 0.0%
3,337 Security Capital Group, Ser. B,*
09/18/98 $ 9,385
-----------
Convertible Preferred Stock -- 4.1%
---------------------------------------------------------
Construction Machinery -- 0.7%
30,000 Ingersoll-Rand Co., 6.75% 735,000
-----------
Financial Services -- 2.8%
28,000 K-Mart Financing Inc., 7.75% 1,841,000
16,500 Tosco Financing Trust, 5.75% 1,025,475
-----------
2,866,475
-----------
Telecommunications -- 0.6%
3,000 Viacom International
(TCI Pacific), 5% 547,500
-----------
Total Convertible Preferred Stock -- 4,148,975
(Cost $3,657,224) -----------
Principal
Amount
(USD)
Convertible Corporate Notes & Bonds -- 4.6%
---------------------------------------------------------
Computers/Computer Hardware -- 1.0%
$ 700,000 Solectron Corp., 6%, 3/1/06# 1,015,583
-----------
Environmental Services -- 0.9%
750,000 USA Waste Services Inc., 4%, 2/1/02 924,848
-----------
Health Care/Health Care Services -- 1.5%
1,000,000 Assisted Living Concepts Inc.,
5.63%, 5/1/03# 956,250
600,000 Assisted Living Concepts Inc., 6%,
11/1/02# 626,664
-----------
1,582,914
-----------
Retailing -- 1.2%
800,000 Federated Department Stores 5%,
10/01/03 1,194,000
-----------
</TABLE>
See notes to financial statements.
23
<PAGE>
Chase Vista Equity Income Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -------------- ----------------------------- ---------------
<S> <C> <C>
Long-Term Investments -- (continued)
- -------------------------------------------------------------
Total Convertible Corporate $ 4,717,345
Notes & Bonds
(Cost $4,178,670)
=============================
Total Long-Term Investments 95,186,626
(Cost $85,345,818)
=============================
Short-Term Investments -- 10.1%
- -------------------------------------------------------------
Time Deposits -- 10.1%
-----------------------------
$10,324,000 Deutsche Bank AG (Germany) $ 10,324,000
(Cost $10,324,000)
-----------------------------
Total Investments -- 103.6% $105,510,626
(Cost $95,669,818)
=============================
</TABLE>
See notes to financial statements.
24
<PAGE>
Chase Vista Small Cap Opportunities Fund
Portfolio of Investments April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------- ----------------------------------- ---------------
<S> <C> <C>
Long-Term Investments -- 91.9%
- ----------------------------------------------------------------
Common Stock -- 90.2%
-----------------------------------
Advertising -- 1.3%
52,550 Outdoor Systems, Inc. $ 1,668,463
------------
Aerospace -- 1.2%
25,000 Precision Castparts Corp. 1,553,125
------------
Automotive -- 2.8%
45,000 Dura Automotive Systems, Inc.* 1,755,000
35,000 Tower Automotive, Inc.* 1,865,938
------------
3,620,938
------------
Banking -- 3.3%
15,000 Bank United Corp., Class A 776,250
25,000 Cullen/Frost Bankers, Inc. 1,462,500
30,000 Prime Bancshares, Inc. 802,500
32,500 Southwest Bancorp of Texas* 1,300,000
------------
4,341,250
------------
Biotechnology -- 1.2%
70,000 BioReliance Corp.* 1,085,000
20,000 Pharmaceutical Product
Development, Inc.* 501,250
------------
1,586,250
------------
Broadcasting -- 0.8%
24,200 Heftel Broadcasting Corp.* 1,061,775
------------
Business Services -- 11.4%
40,000 Conning Corp. 820,000
39,100 CORT Business Services Corp.* 1,561,556
31,000 Diamond Technology Partners Inc.* 868,000
20,000 Hall Kinion & Associates, Inc.* 312,500
55,000 Interim Services, Inc. 1,794,375
10,000 Lamalie Associates, Inc.* 220,000
57,500 Maximus, Inc.* 1,811,250
72,150 NCO Group, Inc. 1,799,241
60,000 Personnel Group of America, Inc. 1,192,500
96,200 PMT Services, Inc.* 1,875,900
75,000 Steven Meyers & Associates, Inc.* 1,293,750
37,500 United Rentals, Inc.* 1,291,406
------------
14,840,478
------------
</TABLE>
See notes to financial statements.
25
<PAGE>
Chase Vista Small Cap Opportunities Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------- ----------------------------------------- --------------
<S> <C> <C>
Long-Term Investments -- (continued)
- ---------------------------------------------------------------------
Computer Software -- 12.6%
40,000 Advantage Learning Systems, Inc.* $ 1,260,000
51,000 American Management Systems, Inc. 1,475,813
60,000 AXENT Technologies, Inc.* 1,575,000
26,250 CSG Systems International, Inc.* 1,194,375
70,000 Datastream Systems, Inc.* 1,610,000
8,000 Exodus Communications, Inc.* 304,000
15,000 Hyperion Software Corp.* 650,625
11,000 Integrated Systems, Inc.* 207,625
30,000 Mastech Corp.* 795,000
55,000 Memco Software Ltd. (Israel)* 1,650,000
32,700 New Era of Networks, Inc.* 866,550
20,000 SCM Microsystems, Inc.* 1,365,000
32,000 Tecnomatix Technologies, Ltd.* 812,000
55,000 TSA International Software Ltd.* 1,210,000
10,000 VeriSign, Inc.* 383,750
30,300 Wind River Systems* 1,049,138
-----------
16,408,876
-----------
Computers/Computer Hardware -- 0.9%
21,000 Micros Systems, Inc.* 1,236,375
-----------
Construction Materials -- 1.0%
53,600 Wilmar Industries, Inc.* 1,279,700
-----------
Consumer Products -- 1.0%
55,000 Carriage Services, Inc. 1,340,625
-----------
Electronics/Electrical Equipment -- 3.1%
10,200 Credence Systems Corp.* 281,138
10,000 Galileo Technology Ltd.* 322,500
76,600 MRV Communications Inc.* 2,058,625
20,000 PMC -- Sierra, Inc.* 910,000
24,700 Sipex Corp.* 490,913
-----------
4,063,176
-----------
Entertainment/Leisure -- 3.1%
22,000 Anchor Gaming* 1,853,500
10,000 CDnow, Inc.* 320,000
56,000 Cinar Films, Inc., Class B* 1,078,000
20,000 Family Golf Centers, Inc.* 842,500
-----------
4,094,000
-----------
</TABLE>
See notes to financial statements.
26
<PAGE>
Chase Vista Small Cap Opportunities Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------- ------------------------------------------- --------------
<S> <C> <C>
Long-Term Investments -- (continued)
- -----------------------------------------------------------------------
Environmental Services -- 3.1%
70,000 Allied Waste Industries, Inc.* $ 1,925,000
85,600 Newpark Resources, Inc.* 2,059,750
-----------
3,984,750
-----------
Financial Services -- 2.2%
43,400 Healthcare Financial Partners, Inc.* 2,186,275
25,000 Waddell & Reed Financial, Inc. 618,750
-----------
2,805,025
-----------
Health Care/Health Care Services -- 12.9%
34,200 Alternative Living Services, Inc.* 1,197,000
46,000 American Dental Partners, Inc.* 810,750
49,000 Ameripath, Inc.* 802,375
71,100 Assisted Living Concepts* 1,306,463
45,000 Cytyc Corp.* 652,500
43,000 ESC Medical Systems Ltd. (Israel)* 1,397,500
7,500 First Consulting Group Inc.* 180,000
65,000 Hanger Orthopedic Group, Inc.* 1,214,688
60,000 Hooper Holmes, Inc. 1,413,750
25,000 IMPATH, Inc.* 931,250
24,300 National Surgery Centers, Inc. 689,513
25,200 Pediatrix Medical Group, Inc.* 1,063,125
29,000 Perclose, Inc.* 880,875
7,000 ResMed, Inc.* 276,938
29,700 Universal Health Services, Inc., Class B* 1,709,606
82,000 Ventana Medical Systems, Inc.* 2,244,750
-----------
16,771,083
-----------
Industrial Manufacturing -- 1.4%
33,800 Waters Corp.* 1,808,300
-----------
Insurance -- 4.4%
59,500 ARM Financial Group Inc., Class A 1,275,531
5,000 CMAC Investment Corp. 322,813
37,000 Horace Mann Educators Corp. 1,271,875
10,000 Orion Capital Corp. 557,500
75,000 Penn-America Group, Inc.* 1,546,875
20,000 Triad Guaranty, Inc. 710,000
-----------
5,684,594
-----------
</TABLE>
See notes to financial statements.
27
<PAGE>
Chase Vista Small Cap Opportunities Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------- ------------------------------------- ---------------
<S> <C> <C>
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
Machinery & Engineering
Equipment -- 2.2%
40,000 Applied Power, Inc., Class A $ 1,495,000
48,200 Rental Service Corp.* 1,400,813
------------
2,895,813
------------
Manufacturing -- 2.1%
37,500 The York Group, Inc. 684,375
60,000 United Dominion Industries, Ltd. 2,051,250
------------
2,735,625
------------
Multi-Media -- 1.5%
40,000 Chancelor Media Corp. 1,897,500
------------
Oil & Gas -- 3.6%
75,000 Bayard Drilling Technologies, Inc.* 1,115,625
10,000 Dril-Quip, Inc.* 359,375
35,000 Friede Goldman International Inc. 1,408,750
60,000 Global Industries Ltd.* 1,361,250
25,000 UTI Energy Corp.* 434,375
------------
4,679,375
------------
Pharmaceuticals -- 1.6%
32,800 Parexel International Corp.* 1,098,800
25,000 PathoGenesis Corporation* 990,625
------------
2,089,425
------------
Real Estate Investment Trust -- 0.4%
15,000 LaSalle Partners, Inc.* 515,625
------------
Retailing -- 5.8%
13,600 99 Cents Only Stores* 518,500
29,260 Fred Meyer, Inc. 1,313,043
15,000 Goody's Family Clothing, Inc.* 742,500
13,000 Linens 'N Things, Inc. 783,250
39,800 Petco Animal Supplies, Inc.* 786,050
28,500 Stage Stores, Inc.* 1,465,969
40,000 West Marine, Inc.* 1,002,500
25,000 White Cap Industries, Inc.* 543,750
14,250 Wild Oats Markets, Inc. 449,766
------------
7,605,328
------------
</TABLE>
See notes to financial statements.
28
<PAGE>
Chase Vista Small Cap Opportunities Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------- ----------------------------------------- ---------------
<S> <C> <C>
Long-Term Investments -- (continued)
- ------------------------------------------------------------------------------
Shipping/Transportation -- 2.8%
42,500 Coach USA, Inc.* $ 2,016,094
20,000 C.H. Robinson Worldwide, Inc.* 457,500
27,800 Hub Group, Inc., Class A* 733,225
50,000 Trailer Bridge, Inc.* 400,000
------------
3,606,819
------------
Telecommunications -- 1.8%
20,600 Aspect Telecommunications Corp.* 592,250
50,000 Corsair Communications, Inc.* 925,000
25,000 Digital Microwave Corporation* 284,375
15,000 RELTEC Corporation* 598,125
------------
2,399,750
------------
Waste Management -- 0.6%
20,000 American Disposal Services, Inc.* 801,875
------------
Wholesaling -- 0.1%
6,500 JLK Direct Distribution Inc.* 212,868
------------
Total Common Stock 117,588,786
(Cost $94,495,265) ------------
Principal
Amount
(USD)
Convertible Corporate Notes & Bonds -- 0.9%
----------------------------------------------------------
Health Care/Health Care Services -- 0.9%
$1,200,000 Assisted Living Concepts Inc.,
5.63%, 5/1/03# $ 1,147,500
(Cost $1,200,000) ------------
=========================================
Total Long-Term Investments $118,736,286
(Cost $95,695,265)
=========================================
</TABLE>
See notes to financial statements.
29
<PAGE>
Chase Vista Small Cap Opportunities Fund
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -------------- ---------------------------- --------------
<S> <C> <C>
Short-Term Investments -- 8.8%
- -----------------------------------------------------------
Time Deposit -- 8.8%
----------------------------
$11,504,000 Deutsche Bank AG (Germany) $ 11,504,000
(Cost $11,504,000)
----------------------------
Total Investments -- 99.9% $130,240,286
(Cost $107,199,265)
============================
</TABLE>
Index
* -- Non income producing security.
# -- Security may only be sold to qualified institutional buyers.
ADR -- American Depository Receipt.
See notes to financial statements.
30
<PAGE>
Statement of Assets and Liabilities April 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth and Capital Equity Small Cap
Income Growth Income Opportunity
Fund Fund Fund Fund
------------------- ----------------- ----------------- ---------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Note 1) .....$2,301,813,224 $1,527,084,634 $105,510,626 $130,240,286
Cash ............................... -- -- 615 360
Receivables:
Investment securities sold ........ -- -- 442,879 --
Interest and dividends ............ -- -- 231,261 12,205
Fund shares sold .................. 3,273,057 7,547,032 839,748 1,858,041
Other assets ....................... 40,746 50,142 -- 76,465
-------------- -------------- ------------ ------------
Total assets .................... 2,305,127,027 1,534,681,808 107,025,129 132,187,357
-------------- -------------- ------------ ------------
LIABILITIES:
Payables:
Investment securities
purchased ........................ -- -- 4,583,592 1,394,533
Trust shares redeemed ............. 1,955,053 1,182,130 386,990 198,820
Accrued liabilities: (Note 2)
Administration fees ............... 189,378 134,898 12,230 15,317
Distribution fees ................. 708,650 502,990 31,273 50,069
Investment advisory fees .......... -- -- 32,614 61,270
Shareholder servicing fees ........ 473,435 309,248 20,383 12,800
Custodian ......................... -- -- 20,768 32,053
Other ............................. 1,230,414 804,987 104,355 110,290
-------------- -------------- ------------ ------------
Total Liabilities ............... 4,556,930 2,934,253 5,192,205 1,875,152
-------------- -------------- ------------ ------------
NET ASSETS:
Paid in capital .................... 1,354,661,204 956,379,109 85,086,864 107,133,365
Accumulated undistributed net
investment income (loss) .......... 281,052 (3,153,656) 70,759 (663,647)
Accumulated undistributed net
realized gain on investment
transactions ...................... 300,180,934 132,825,609 6,834,493 801,466
Net unrealized appreciation of
investments and futures ........... 645,446,907 445,696,493 9,840,808 23,041,021
-------------- -------------- ------------ ------------
Net Assets ......................... $2,300,570,097 $1,531,747,555 $101,832,924 $130,312,205
============== ============== ============ ============
Shares Outstanding:
Class A Shares .................... 35,847,554 18,839,364 3,648,228 4,242,158
Class B Shares .................... 12,668,172 10,304,683 1,220,167 3,917,790
Class C Shares .................... 30,655 21,615 149,178 88,964
Class I Shares .................... 600,079 1,655,682 -- --
Net Asset Value:
Class A Shares (and
redemption price) ................ $ 46.89 $ 49.99 $ 20.34 $ 15.85
Class B Shares* ................... $ 46.59 $ 49.08 $ 20.17 $ 15.75
Class C Shares* ................... $ 45.75 $ 48.68 $ 20.17 $ 15.74
Class I Shares (and
redemption price) ................ $ 47.08 $ 50.25 $ -- $ --
Class A Maximum Public
Offering Price Per Share
(net asset value plus 4.75%
of net asset value per share) ..... $ 49.23 $ 52.48 $ 21.30 $ 16.64
-------------- -------------- ------------ ------------
Cost of Investments ................ $ -- $ -- $95,669,818 $107,199,265
============== ============== ============ ============
</TABLE>
- --------------
* Redemption price may be reduced by contingent deferred sales charge.
See notes to financial statements.
31
<PAGE>
Statement of Operations For the year ended April 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth and Capital Equity Small Cap
Income Growth Income Opportunity
Fund Fund Fund Fund
---------------- --------------- ------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend ............................. -- -- $ 917,617 $ 36,498
Interest ............................. -- -- 256,072 197,512
Investment income from Portfolio ..... $ 20,059,520 $ 6,833,196 -- --
Foreign taxes withheld ............... (140,273) (14,645) (2,387) (604)
Expenses from Portfolio .............. (5,405,786) (3,353,200) -- --
------------ ------------ ---------- -----------
Total investment income ............ 14,513,461 3,465,351 1,171,302 233,406
------------ ------------ ---------- -----------
EXPENSES: (Note 2)
Administration fees .................. 1,149,687 697,402 60,149 72,627
Distribution fees .................... 3,932,973 2,783,768 150,742 236,431
Investment advisory fees ............. -- -- 160,397 314,717
Shareholder servicing fees ........... 2,874,218 1,743,506 100,249 121,046
Custody fees ......................... -- -- 48,119 30,570
Printing and postage ................. 107,672 59,932 2,464 8,640
Professional fees .................... 21,414 23,865 11,057 12,111
Registration costs ................... 32,123 42,191 14,782 38,415
Transfer agent fees .................. 1,800,824 1,174,554 92,476 168,699
Trustees fees and expenses ........... 22,994 13,948 2,005 2,421
Other ................................ 45,736 58,320 1,885 16,531
------------ ------------ ---------- -----------
Total expenses ..................... 9,987,641 6,597,486 644,325 1,022,208
------------ ------------ ---------- -----------
Less amounts waived .................... -- -- -- 125,155
------------ ------------ ---------- -----------
Net expenses ........................... 9,987,641 6,597,486 644,325 897,053
------------ ------------ ---------- -----------
Net investment income (loss) ......... 4,525,820 (3,132,135) 526,977 (663,647)
------------ ------------ ---------- -----------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain on:
Investments .......................... 300,284,088 132,875,936 6,794,750 1,472,410
Futures transactions ................. -- -- 43,751 --
Change in net unrealized
appreciation on investments ......... 70,508,383 121,636,779 2,468,324 14,178,601
------------ ------------ ---------- -----------
Net realized and unrealized gain on
investments ......................... 370,792,471 254,512,715 9,306,825 15,651,011
------------ ------------ ---------- -----------
Net increase in net assets from
operations .......................... $375,318,291 $251,380,580 $9,833,802 $14,987,364
============ ============ ========== ===========
</TABLE>
See notes to financial statements.
32
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Statement of Changes in Net Assets For the periods indicated (unaudited)
Growth and Capital
Income Growth
Fund Fund
------------------------------------ -------------------------------------
11/01/97 Year ended 11/01/97 Year ended
Through October 31, Through October 31,
04/30/98 1997 04/30/98 1997
----------------- ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) .................... $ 4,525,820 $ 18,557,123 ($ 3,132,135) ($ 2,431,588)
Net realized gain (loss) on investments and
futures transactions ........................... 300,284,088 346,561,648 132,875,936 141,845,250
Change in net unrealized appreciation on
investments and futures ........................ 70,508,383 219,612,905 121,636,779 146,684,790
-------------- -------------- ------------- -------------
Increase in net assets from operations .......... 375,318,291 584,731,676 251,380,580 286,098,452
-------------- -------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income ........................... (5,065,207) (19,159,664) -- (3,602,277)
Net realized gain on investment transactions..... (350,484,992) (157,923,667) (138,761,329) (129,278,815)
-------------- -------------- ------------- -------------
Total dividends and distributions .............. (355,550,199) (177,083,331) (138,761,329) (132,881,092)
-------------- -------------- ------------- -------------
Increase (decrease) from capital share
transactions (Note 5) .......................... (227,371,752) 111,162,161 105,879,382 26,775,600
-------------- -------------- ------------- -------------
Total increase (decrease) in net assets ........ (207,603,660) 518,810,506 218,498,633 179,992,960
NET ASSETS:
Beginning of period ............................. 2,508,173,757 1,989,363,251 1,313,248,922 1,133,255,962
-------------- -------------- ------------- -------------
End of period ................................... $2,300,570,097 $2,508,173,757 $1,531,747,555 $1,313,248,922
============== ============== ============= =============
<CAPTION>
Statement of Changes in Net Assets For the periods indicated (unaudited)
Equity Small Cap
Income Opportunity
Fund Fund*
------------------------------- -------------------------------
11/01/97 Year ended 11/01/97 5/19/97*
Through October 31, Through Through
04/30/98 1997 04/30/98 10/31/97
--------------- --------------- ---------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) .................... $ 526,977 $ 553,508 ($ 663,647) ($ 282,454)
Net realized gain (loss) on investments and
futures transactions ........................... 6,838,501 4,305,713 1,472,410 (670,943)
Change in net unrealized appreciation on
investments and futures ........................ 2,468,324 4,681,346 14,178,601 8,862,419
------------ ------------ ----------- ----------
Increase in net assets from operations .......... 9,833,802 9,540,567 14,987,364 7,909,022
------------ ------------ ----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income ........................... (644,088) (408,650) -- --
Net realized gain on investment transactions..... (4,294,946) (1,849,469) -- --
------------ ------------ ----------- ----------
Total dividends and distributions .............. (4,939,034) (2,258,119) -- --
------------ ------------ ----------- ----------
Increase (decrease) from capital share
transactions (Note 5) .......................... 34,766,540 36,836,769 34,547,588 72,868,231
------------ ------------ ----------- ----------
Total increase (decrease) in net assets ........ 39,661,308 44,119,217 49,534,952 80,777,253
NET ASSETS:
Beginning of period ............................. 62,171,616 18,052,399 80,777,253 --
------------ ------------ ----------- ----------
End of period ................................... $101,832,924 $ 62,171,616 $130,312,205 $80,777,253
============ ============ =========== ==========
</TABLE>
- -------
* Commencement of operations of the Fund.
See notes to financial statements.
33
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies -- Mutual Fund Group (the
"Trust") was organized on May 11, 1987 as a Massachusetts Business Trust, and
is registered under the Investment Company Act of 1940, as amended, (the "1940
Act") as an open-end management investment company. Effective March 16, 1998,
the Vista Family of Mutual Funds changed its name to Chase Vista Funds. Growth
and Income Fund ("VGIF"), Capital Growth Fund ("VCGF"), Equity Income Fund
("VEIF") and Small Cap Opportunities Fund ("VSCOF") collectively, the "Funds",
are separate series of The Trust. The Funds offer various classes of shares as
follows:
<TABLE>
<CAPTION>
Fund Classes Offered
- ------- -----------------------------------------
<S> <C>
VGIF Class A, Class B, Class C, Institutional
VCGF Class A, Class B, Class C, Institutional
VEIF Class A, Class B, Class C
VSCOF Class A, Class B, Class C
</TABLE>
Class A shares generally provide for a front-end sales charge while Class B
shares and Class C shares provide for a contingent deferred sales charge. All
classes of shares have equal rights as to earnings, assets and voting
privileges except that each class may bear different distribution fees and each
class has exclusive voting rights with respect to its distribution plan. No
sales charges are assessed with respect to the Institutional Class ("Class I").
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. VGIF and VCGF
Effective November 29, 1993, VGIF and VCGF adopted the Master Feeder Fund
structure through the contribution of their investment assets to their
respective portfolios in exchange for beneficial interests in such
portfolios of an equal value. Prior thereto each Fund owned individual
investment securities. VGIF and VCGF seek to achieve their investment
objective by investing all of their investable assets in the Growth and
Income Portfolio and the Capital Growth Portfolio respectively (the
"Portfolios") which like the Funds, are open-end management investment
companies having the same investment objectives as the Funds. As of April
30, 1998, VGIF and VCGF owned 75.04% and 99.99% of the net assets of the
Growth and Income Portfolio, and of the Capital Growth Portfolio,
respectively. The financial statements of each Portfolio, including the
portfolio of investments, are included elsewhere in this report and should
be read in conjunction with the financial statements of the Funds.
1. Valuation of investments -- VGIF and VCGF record their investments in
their respective Portfolios at value. Securities of the Portfolios are
recorded at value as more fully discussed in the notes to those
financial statements.
2. Investment income and expenses -- VGIF and VCGF record daily their
pro-rata share of the respective Portfolio's income, expenses, and
realized and unrealized gains and losses. In addition, the Funds accrue
their own expenses daily as incurred. Realized gains/losses and changes
in unrealized appreciation/depreciation represent the Fund's share of
such elements allocated from the Portfolio.
B. VEIF and VSCOF
1. Valuation of investments -- Equity securities, purchased options and
futures are valued at the last sale price on the exchange on which they
are primarily traded, including the NASDAQ National Market. Securities
for which sale prices are not available and other over-the-counter
securities are valued at the last quoted bid price. Bonds and other
fixed income securities (other than short-term obligations), including
listed issues, are valued on the basis of the valuations
34
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
supplied by pricing services or by matrix pricing systems of a major
dealer in bonds. Short-term debt securities with 61 days or more to
maturity at time of purchase are valued, through the 61st day prior to
maturity, at market value based on quotations obtained from market
makers or other appropriate sources; thereafter, the value on the 61st
day is amortized on a straight-line basis over the remaining number of
days to maturity. Short-term investments with 60 days or less to
maturity at time of purchase are valued at amortized cost, which
approximates market. Portfolio securities for which there are no such
quotations or valuations are valued at fair value as determined in good
faith by or at the direction of the Trustees.
2. Repurchase agreements -- It is the Trust's policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government
Agency securities. All collateral is held by the Trust's custodian bank,
subcustodian, or a bank with which the custodian bank has entered into a
subcustodian agreement, or is segregated in the Federal Reserve Book
Entry System. In connection with transactions in repurchase agreements,
if the seller defaults and the value of the collateral declines, or if
the seller enters an insolvency proceeding, realization of the collateral
by the Trust may be delayed or limited.
3. Futures contracts -- When a Fund enters into a futures contract, it
makes an initial margin deposit in a segregated account, either in cash
or liquid securities. Thereafter, the futures contract is marked to
market and the fund makes (or receives) additional cash payments daily to
the broker. Changes in the value of the contract are recorded as
unrealized appreciation/depreciation until the contract is closed or
settled.
The Funds invest in stock index futures contracts for the purpose of
hedging the Fund against share price volatility, which purpose may or may
not be achieved. When the Fund is not fully invested in the securities
market, it may enter into "long" positions in futures or options
contracts in order to gain rapid market exposure that may in part or
entirely offset increases in the cost of securities intended for
purchase. Use of long futures contracts subject the Fund to risk of loss
in excess of amounts shown on the Statement of Assets and Liabilities, up
to the amount of the value of the futures contracts.
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 Funds' credit risk is limited
to failure of the exchange or board of trade. As of April 30, 1998 the
Funds had no outstanding futures contracts.
4. Written options -- When a Fund writes an option on a futures
contract, an amount equal to the premium received by the Fund is
included in the Fund's Statement of Assets and Liabilities as an asset
and corresponding liability. The amount of the liability is adjusted
daily to reflect the current market value of the written 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 VSCOF may write options on stock index securities futures. These
options are settled for cash and subject the Fund to market risk in
excess of the amounts that are reflected in the Statement of Assets and
Liabilities. The Fund, however, is not subject to credit risk on written
options as the counterparty has already performed its obligation by
paying a premium at the inception of the contract.
As of April 30, 1998 the Funds had no outstanding written options.
35
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
5. Security transactions and investment income -- Investment
transactions are accounted for on the trade date (the date the order to
buy or sell is executed). Securities gains and losses are calculated on
the identified cost basis. Interest income is accrued as earned.
Dividend income is recorded on the ex-dividend date.
C. General Policies
1. Organization costs -- Organization and initial registration costs
incurred in connection with establishing the Funds have been deferred
and are being amortized on a straight-line basis over a sixty month
period beginning at the commencement of operations of each Fund.
2. Federal income taxes -- Each Fund is treated as a separate taxable
entity for Federal income tax purposes. Each Fund's policy is to comply
with the provisions of the Internal Revenue Code applicable to regulated
investment companies and to distribute to shareholders all of its
distributable net investment income, and net realized gain on
investments. In addition, each Fund intends to make distributions as
required to avoid excise taxes. Accordingly, no provision for Federal
income or excise tax is necessary.
3. Distributions to shareholders -- Dividends and distributions paid to
shareholders are recorded on the ex-dividend date. The amount of
dividends and distributions from net investment income and net realized
capital gains is determined in accordance with Federal income tax
regulations, which may differ from generally accepted accounting
principles. To the extent these "book/tax" differences are permanent in
nature, (i.e., that they result from other than timing of recognition --
"temporary differences") such amounts are reclassified within the capital
accounts based on their Federal tax-basis treatment. Dividends and
distributions which exceed net investment income or net realized capital
gains for financial reporting purposes but not for tax purposes are
reported as distributions in excess of net investment income or net
realized capital gains.
4. Expenses -- Expenses directly attributable to a Fund are charged to
that Fund; other expenses are allocated proportionately among each Fund
within the Trust in relation to the net assets of each Fund or on
another reasonable basis. In calculating the net asset value per share
of each class, investment income, realized and unrealized gains and
losses and expenses other than class specific expenses, are allocated
daily to each class of shares based upon the proportion of net assets of
each class at the beginning of each day.
2. Fees and Other Transactions with Affiliates
A. Investment advisory fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank, ("Chase" or the "Advisor") acts as
the Investment Advisor to the VSCOF and VEIF. Chase is a direct
wholly-owned subsidiary of The Chase Manhattan Corporation. As Investment
Advisor, 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 0.65% for VSCOF and 0.40% for VEIF of the average
daily net assets. The Advisor, voluntarily waived $64,105 of its fees for
VSCOF for the six month period ended April 30, 1998.
Chase Asset Management, Inc. ("CAM"), a registered investment advisor, is
the sub-investment advisor 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 0.20% of VEIF and 0.30% of VSCOF's
average daily net assets.
B. Shareholder servicing fees -- The Trust has adopted an Administrative
Services Plan which, among other things, provides that the Trust on behalf
of the Funds may
36
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
obtain the services of one or more Shareholder Servicing Agents. For its
services, the Shareholder Servicing Agents receive a fee that is computed
daily and paid monthly at an annual rate equal to 0.25% of the average
daily net assets of each of the classes of the funds. For the six months
ended April 30, 1998, Chase's Shareholder Servicing charges amounted to:
VGIF: $2,803,803, VCGF: $1,628,043, VEIF: $100,249 and VSCOF: $121,046
(before waivers).
The Shareholder Servicing Agents have voluntarily waived $61,050 of VSCOF
of their fees for the six month period ended April 30, 1998.
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 VGIF, VCGF, VSCOF and VEIF in accordance with Rule
12b-1 under the 1940 Act. There is no Distribution Plan for the Institutional
Classes. The Class A Distribution Plans provide that each Fund shall pay
distribution fees, including payments to the Distributor, at annual rates not
to exceed 0.25% of the average daily net assets of the Class A Shares of each
Fund. The Class B and Class C Distribution Plans 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 and Class C Shares for distribution services.
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 VSCOF and VEIF
a fee computed at the annual rate equal to 0.10% of the respective Fund's
average daily net assets and from VGIF and VCGF, a fee computed at the annual
rate equal to 0.05% of the respective Fund's average daily net assets.
37
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
E. Other -- Certain officers of the Trust are officers of Vista Fund
Distributors, Inc. or of its parent corporation, BISYS.
Chase provides portfolio accounting and custody services for VSCOF and
VEIF. 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>
VEIF VSCOF
-------------- --------------
<S> <C> <C>
Purchases (excluding U.S. Government) ......... $81,546,528 $57,857,456
Sales (excluding U.S. Government) ............. 43,835,720 30,485,975
Purchases of U.S. Government .................. 3,919,063 --
Sales of U.S. Government ...................... 10,179,500 --
</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>
VEIF VSCOF
-------------- ---------------
<S> <C> <C>
Aggregate cost ........................ $95,669,818 $107,199,265
----------- ------------
Gross unrealized appreciation ......... 11,342,267 26,827,751
Gross unrealized depreciation ......... (1,501,459) (3,786,730)
----------- ------------
Net unrealized appreciation ........... $ 9,840,808 $ 23,041,021
=========== ============
</TABLE>
5. Transactions in Shares of Beneficial Interest -- Transactions in Shares of
Beneficial Interest were as follows:
<TABLE>
<CAPTION>
Growth and Income Fund
--------------------------------------------------------------------------
11/01/97
Through Year Ended
04/30/98 October 31, 1997
----------------------------------- ------------------------------------
Amount Shares Amount Shares
----------------- --------------- ----------------- ----------------
<S> <C> <C> <C> <C>
Class A
Shares sold ............. $133,644,211 2,967,253 $ 227,685,739 5,475,599
Shares issued in
reinvestment of
distributions ......... 197,497,048 4,833,293 129,043,670 3,389,044
Shares redeemed ......... (193,753,521) (4,341,503) (685,048,191) (17,046,486)
------------ ---------- ------------- -----------
Net increase (decrease)
in Trust shares
outstanding ........... $137,387,738 3,459,043 $(328,318,782) (8,181,843)
============ ========== ============= ===========
</TABLE>
38
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth and Income Fund
---------------------------------------------------------------------
11/01/97
Through Year Ended
04/30/98 October 31, 1997
-------------------------------- ----------------------------------
Amount Shares Amount Shares
---------------- ------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Class B
Shares sold ............. $53,021,303 1,194,015 $72,705,744 1,733,138
Shares issued in
reinvestment of
distributions ......... 65,410,677 1,615,062 30,201,645 801,403
Shares redeemed ......... (34,770,675) (782,697) (58,550,825) (1,388,230)
----------- --------- ----------- ----------
Net increase (decrease)
in Trust shares
outstanding ........... $83,661,305 2,026,380 $44,356,564 1,146,311
=========== ========= =========== ==========
</TABLE>
<TABLE>
<CAPTION>
Growth and Income Fund
------------------------
01/02/98*
Through
04/30/98
------------------------
Amount Shares
------------- ----------
<S> <C> <C>
Class C
Shares sold .............. $1,394,479 31,112
Shares issued in
reinvestment of
distributions .......... 923 20
Shares redeemed .......... (21,239) (477)
---------- ------
Net increase (decrease)
in Trust shares
outstanding ............ $1,374,163 30,655
========== ======
</TABLE>
<TABLE>
<CAPTION>
Growth and Income Fund
----------------------------------------------------------------------
11/01/97
Through Year Ended
04/30/98 October 31, 1997
------------------------------------ -------------------------------
Amount Shares Amount Share
----------------- ---------------- --------------- -------------
<S> <C> <C> <C> <C>
Institutional Shares
Shares sold ............. $ 11,195,891 253,772 $422,932,946 11,192,183
Shares issued in
reinvestment of
distributions ......... 73,974,034 1,805,354 5,964,007 145,389
Shares redeemed ......... (534,964,883) (12,728,164) (33,772,574) (781,013)
------------- ----------- ------------ ----------
Net increase (decrease)
in Trust shares
outstanding ........... $(449,794,958) (10,669,038) $395,124,379 10,556,559
============= =========== ============ ==========
</TABLE>
39
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Capital Growth Fund
--------------------------------------------------------------------------
11/01/97
Through Year Ended
04/30/98 October 31, 1997
----------------------------------- ------------------------------------
Amount Shares Amount Shares
----------------- --------------- ----------------- ----------------
<S> <C> <C> <C> <C>
Class A
Shares sold ............. $215,168,377 4,639,113 $791,649,767 18,969,340
Shares issued in
reinvestment of
distributions ......... 82,453,203 1,955,721 82,591,535 2,084,634
Shares redeemed ......... (264,284,979) (5,706,585) (902,994,337) (21,565,852)
------------ ---------- ------------ -----------
Net increase (decrease)
in Trust shares
outstanding ........... $ 33,336,601 888,249 $(28,753,035) (511,878)
============ ========== ============ ===========
</TABLE>
<TABLE>
<CAPTION>
Capital Growth Fund
-----------------------------------------------------------------------
11/01/97
Through Year Ended
04/30/98 October 31, 1997
---------------------------------- ----------------------------------
Amount Shares Amount Shares
---------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Class B
Shares sold ............. $57,398,333 1,273,096 $73,425,620 1,775,731
Shares issued in
reinvestment of
distributions ......... 42,830,096 1,032,548 38,681,174 987,096
Shares redeemed ......... (51,601,248) (1,145,666) (71,081,380) (1,717,714)
----------- ---------- ----------- ----------
Net increase (decrease)
in Trust shares
outstanding ........... $48,627,181 1,159,978 $41,025,414 1,045,113
=========== ========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
Capital Growth Fund
--------------------------
01/02/98*
Through
04/30/98
--------------------------
Amount Shares
------------- ----------
<S> <C> <C>
Class C
Shares sold ............. $1,034,133 22,078
Shares issued in
reinvestment of
distributions ......... -- --
Shares redeemed ......... (21,713) (463)
---------- ------
Net increase (decrease)
in Trust shares
outstanding ........... $1,012,420 21,615
========== ======
</TABLE>
40
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Capital Growth Fund
-------------------------------------------------------------------
11/01/97
Through Year Ended
04/30/98 October 31, 1997
-------------------------------- --------------------------------
Amount Shares Amount Shares
---------------- ------------- ---------------- -------------
<S> <C> <C> <C> <C>
Institutional Shares
Shares sold ............. $48,266,347 1,045,292 $25,872,504 619,791
Shares issued in
reinvestment of
distributions ......... 5,934,976 140,174 4,367,828 110,013
Shares redeemed ......... (31,298,143) (643,748) (15,737,111) (373,095)
----------- --------- ----------- --------
Net increase (decrease)
in Trust shares
outstanding ........... $22,903,180 541,718 $14,503,221 356,709
=========== ========= =========== ========
</TABLE>
<TABLE>
<CAPTION>
Equity Income Fund
-----------------------------------------------------------------
11/01/97
Through Year Ended
04/30/98 October 31, 1997
-------------------------------- ------------------------------
Amount Shares Amount Shares
---------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Class A
Shares sold ............. $32,592,966 1,661,738 $26,803,768 1,501,526
Shares issued in
reinvestment of
distributions ......... 2,852,499 150,909 1,906,482 122,039
Shares redeemed ......... (12,212,483) (628,352) (4,432,663) (255,045)
----------- --------- ----------- ---------
Net increase (decrease)
in Trust shares
outstanding ........... $23,232,982 1,184,295 $24,277,587 1,368,520
=========== ========= =========== =========
</TABLE>
<TABLE>
<CAPTION>
Equity Income Fund
--------------------------------------------------------------
11/01/97
Through Year Ended
04/30/98 October 31, 1997
------------------------------ -----------------------------
Amount Shares Amount Shares
-------------- ------------- -------------- ------------
<S> <C> <C> <C> <C>
Class B
Shares sold ............. $11,624,582 599,765 $13,283,431 780,048
Shares issued in
reinvestment of
distributions ......... 1,086,748 58,095 129,708 8,101
Shares redeemed ......... (4,165,445) (213,109) (853,957) (47,203)
----------- -------- ----------- -------
Net increase (decrease)
in Trust shares
outstanding ........... $ 8,545,885 444,751 $12,559,182 740,946
=========== ======== =========== =======
</TABLE>
41
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Equity Income Fund
---------------------------
01/08/98*
Through
04/30/98
---------------------------
Amount Shares
------------- -----------
<S> <C> <C>
Class C
Shares sold ............. $2,987,564 149,173
Shares issued in
reinvestment of
distributions ......... 3,767 186
Shares redeemed ......... (3,658) (181)
---------- -------
Net increase (decrease)
in Trust shares
outstanding ........... $2,987,673 149,178
========== =======
</TABLE>
<TABLE>
<CAPTION>
Small Cap Opportunities Fund
---------------------------------------------------------------
11/01/97
Through May 19, 1997** Through
04/30/98 October 31, 1997
------------------------------ ------------------------------
Amount Shares Amount Shares
Class A -------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Shares sold ............. $22,447,997 1,570,213 $40,269,785 3,270,589
Shares issued in
reinvestment of
distributions ......... -- -- -- --
Shares redeemed ......... (5,762,105) (406,375) (2,618,211) (192,269)
----------- --------- ----------- ---------
Net increase (decrease)
in Trust shares
outstanding ........... $16,685,892 1,163,838 $37,651,574 3,078,320
=========== ========= =========== =========
</TABLE>
<TABLE>
<CAPTION>
Small Cap Opportunities Fund
--------------------------------------------------------------
11/01/97
Through May 19, 1997** Through
04/30/98 October 31, 1997
------------------------------ -----------------------------
Amount Shares Amount Shares
Class B -------------- ------------- -------------- ------------
<S> <C> <C> <C> <C>
Shares sold ............. $21,021,013 1,481,909 $36,272,912 2,840,285
Shares issued in
reinvestment of
distributions ......... -- -- -- --
Shares redeemed ......... (4,470,102) (325,700) (1,056,255) (78,704)
----------- --------- ----------- ---------
Net increase (decrease)
in Trust shares
outstanding ........... $16,550,911 1,156,209 $35,216,657 2,761,581
=========== ========= =========== =========
</TABLE>
42
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small Cap Opportunity
Income
Fund
-------------------------
01/07/98*
Through
04/30/98
-------------------------
Amount Shares
------------- ---------
<S> <C> <C>
Class C
Shares sold ............. $1,314,582 89,208
Shares issued in
reinvestment of
distributions ......... -- --
Shares redeemed ......... (3,797) (244)
---------- ------
Net increase (decrease)
in Trust shares
outstanding ........... $1,310,785 88,964
========== ======
</TABLE>
- --------------
*Commencement of offering class of shares.
**Fund commenced operations.
6. Retirement Plan -- The Funds have adopted an unfunded noncontributory defined
benefit pension plan covering all independent trustees of the Funds who will
have served as an independent trustee for at least five years at the time of
retirement. Benefits under this plan are based on compensation and years of
service. Pension expenses for the six months ended April 30, 1998, included in
Trustees Fees and Expenses in the Statement of Operations, and accrued pension
liability included in other accrued liabilities in the Statement of Assets and
Liabilities were as follows:
<TABLE>
<CAPTION>
Accrued
Pension Pension
Expenses Liability
---------- ----------
<S> <C> <C>
VGIF .......... $9,897 $74,364
VCGF .......... 5,887 39,103
VEIF .......... 558 3,006
VSCOF ......... 590 1,315
</TABLE>
43
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Financial Highlights (unaudited)
Growth and 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
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ........ $ 46.21 $ 39.21 $ 34.96 $ 30.26 $ 30.99
---------- --------- --------- --------- ---------
Income From Investment Operations:
Net Investment Income ...................... 0.095 0.347@ 0.599 0.614 0.466
Net Gains or Losses in Securities
(both realized and unrealized) ............ 7.184 10.180 5.960 4.710 (0.429)
---------- ---------- ---------- ---------- ----------
Total from Investment Operations ........... 7.279 10.527 6.559 5.324 0.037
---------- ---------- ---------- ---------- ----------
Less Distributions:
Dividends from Net Investment Income ........ 0.115 0.379 0.549 0.621 0.422
Distributions from Capital Gains ............ 6.484 3.150 1.762 -- 0.345
---------- ---------- ---------- ---------- ----------
Total Distributions ......................... 6.599 3.529 2.311 0.621 0.767
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Period .............. $ 46.89 $ 46.21 $ 39.21 $ 34.96 $ 30.26
========== ========== ========== ========== ==========
Total Return (1) ............................ 17.90% 28.84% 19.60% 17.79% 0.15%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) $1,680,725 $1,496,738 $1,590,893 $1,521,489 $1,413,899
Ratios to average net assets #:
Ratio of Expenses .......................... 1.27% 1.27% 1.32% 1.43% 1.40%
Ratio of Net Investment Income ............. 0.46% 0.82% 1.46% 1.93% 1.60%
Ratio of Expenses Without Waivers and
Assumption of Expenses .................... 1.27% 1.27% 1.32% 1.45% 1.40%
Ratio of Net Investment Income
Without Waivers and Assumptions of
Expenses .................................. 0.46% 0.82% 1.46% 1.91% 1.60%
Portfolio Turnover Rate .....................
<CAPTION>
Growth and Income Fund
------------------------------------------------------------------------------
Class A
------------
Year Ended 11/01/97 Year Ended 11/04/93*
------------ Through -------------------------------------- Through
10/31/93 04/30/98 10/31/97 10/31/96 10/31/95 10/31/94
------------ ------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ........ $ 26.60 $ 45.96 $ 39.02 $ 34.81 $ 30.12 $ 30.39
-------- ------- ------- ------- -------- -------
Income From Investment Operations:
Net Investment Income ...................... 0.341 -- 0.132@ 0.366 0.463 0.336
Net Gains or Losses in Securities
(both realized and unrealized) ............ 5.007 7.114 10.130 5.984 4.700 0.109
-------- -------- -------- -------- -------- --------
Total from Investment Operations ........... 5.348 7.114 10.262 6.350 5.163 0.445
-------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from Net Investment Income ........ 0.338 -- 0.173 0.379 0.470 0.370
Distributions from Capital Gains ............ 0.620 6.484 3.150 1.762 -- 0.345
-------- -------- -------- -------- -------- --------
Total Distributions ......................... 0.958 6.484 3.323 2.141 0.470 0.715
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period .............. $ 30.99 $ 46.59 $ 45.96 $ 39.02 $ 34.81 $ 30.12
======== ======== ======== ======== ======== ========
Total Return (1) ............................ 20.47% 17.60% 28.20% 19.02% 17.21% 1.55%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) $949,465 $590,190 $489,100 $370,496 $273,685 $160,375
Ratios to average net assets #:
Ratio of Expenses .......................... 1.39% 1.75% 1.77% 1.81% 1.93% 1.89%
Ratio of Net Investment Income ............. 1.07% (0.04%) 0.31% 0.95% 1.38% 1.21%
Ratio of Expenses Without Waivers and
Assumption of Expenses .................... 1.39% 1.75% 1.77% 1.81% 1.94% 1.89%
Ratio of Net Investment Income
Without Waivers and Assumptions of
Expenses .................................. 1.07% (0.04%) 0.31% 0.95% 1.37% 1.21%
Portfolio Turnover Rate ..................... 41%
</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.
@ Calculated based upon average shares outstanding.
See notes to financial statements.
44
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Financial Highlights (unaudited)
Growth and
Income Fund
------------
Class C
------------
01/02/98**
Through
04/30/98
------------
Per Share Operating Performance
<S> <C>
Net Asset Value, Beginning of Period ........................................... $ 40.92
---------
Income From Investment Operations:
Net Investment Income ......................................................... 0.100
Net Gains or Losses in Securities (both realized and unrealized) .............. 4.790
---------
Total from Investment Operations .............................................. 4.890
---------
Less Distributions:
Dividends from Net Investment Income ........................................... 0.060
Distributions from Capital Gains ............................................... --
---------
Total Distributions ............................................................ 0.060
---------
Net Asset Value, End of Period ................................................. $ 45.75
=========
Total Return (1) ............................................................... 15.63%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ....................................... $ 1,403
Ratios to average net assets #:
Ratio of Expenses ............................................................. 1.11%
Ratio of Net Investment Income ................................................ (0.08%)
Ratio of Expenses Without Waivers and Assumption of Expenses .................. 1.11%
Ratio of Net Investment Income Without Waivers and Assumption of Expenses ..... (0.08%)
Portfolio Turnover Rate ........................................................
<CAPTION>
Growth and Income Fund
------------------------------------
Institutional Shares
------------------------------------
11/01/97 Year 01/25/96**
Through Ended Through
04/30/98 10/31/97 10/31/96
----------- ------------ -----------
Per Share Operating Performance
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ........................................... $ 46.35 $ 39.26 $ 34.80
-------- ------- -------
Income From Investment Operations:
Net Investment Income ......................................................... 0.220@ 0.518@ 0.467
Net Gains or Losses in Securities (both realized and unrealized) .............. 7.139 10.200 4.459
-------- -------- -------
Total from Investment Operations .............................................. 7.359 10.718 4.926
-------- -------- -------
Less Distributions:
Dividends from Net Investment Income ........................................... 0.145 0.483 0.471
Distributions from Capital Gains ............................................... 6.484 3.150 --
-------- -------- -------
Total Distributions ............................................................ 6.629 3.633 0.471
-------- -------- -------
Net Asset Value, End of Period ................................................. $ 47.08 $ 46.35 $ 39.26
======== ======== =======
Total Return (1) ............................................................... 18.04% 29.37% 13.39%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ....................................... $ 28,253 $522,336 $27,974
Ratios to average net assets #:
Ratio of Expenses ............................................................. 0.87% 0.86% 1.24%
Ratio of Net Investment Income ................................................ 0.96% 1.21% 1.73%
Ratio of Expenses Without Waivers and Assumption of Expenses .................. 0.87% 0.86% 1.24%
Ratio of Net Investment Income Without Waivers and Assumption of Expenses ..... 0.96% 1.21% 1.73%
Portfolio Turnover Rate ........................................................
</TABLE>
- -------
** Commencement of offering of class of shares.
# Short periods have been annualized.
(1) Total return figures do not include the effect of any sales load.
@ Calculated based upon average shares outstanding.
See notes to financial statements.
45
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Financial Highlights (unaudited)
Capital Growth 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 ........ $ 46.76 $ 41.60 $ 35.65 $ 32.17 $ 32.01 $ 25.12
-------- -------- ------- ------- ------- -------
Income From Investment Operations:
Net Investment Income ...................... (0.070) (0.022)@ 0.147 0.189 0.099@ 0.064
Net Gains or Losses in Securities
(both realized and unrealized) ............ 8.201 10.130 7.270 4.160 0.719 7.173
-------- --------- -------- -------- -------- --------
Total from Investment Operations ........... 8.131 10.108 7.417 4.349 0.818 7.237
-------- --------- -------- -------- -------- --------
Less Distributions:
Dividends from Net Investment Income ........ -- 0.144 0.117 0.189 0.027 0.093
Distributions from Capital Gains ............ 4.901 4.800 1.355 0.676 0.631 0.257
-------- --------- -------- -------- -------- --------
Total Distributions ......................... 4.901 4.944 1.472 0.865 0.658 0.350
-------- --------- -------- -------- -------- --------
Net Asset Value, End of Period .............. $ 49.99 $ 46.76 $ 41.60 $ 35.65 $ 32.17 $ 32.01
======== ========= ======== ======== ======== ========
Total Return (1) ............................ 19.34% 26.47% 21.48% 13.89% 2.62% 29.06%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) $ 941,699 $ 839,354 $767,998 $ 747,575 $549,411 $225,235
Ratios to average net assets #:
Ratio of Expenses .......................... 1.29% 1.31% 1.37% 1.51% 1.49% 1.49%
Ratio of Net Investment Income ............. (0.30%) (0.05%) 0.39% 0.54% 0.33% 0.12%
Ratio of Expenses Without Waivers and
Assumption of Expenses .................... 1.29% 1.31% 1.37% 1.53% 1.50% 1.49%
Ratio of Net Investment Income
Without Waivers and Assumptions of
Expenses .................................. (0.30%) (0.05%) 0.39% 0.52% 0.32% 0.12%
Portfolio Turnover Rate ..................... 43%
<CAPTION>
Capital Growth Fund
-------------------------------------------------------------------
Class B
-------------------------------------------------------------------
11/01/97 Year Ended 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 ........ $ 46.11 $ 41.21 $ 35.39 $ 32.03 $ 31.38
-------- -------- ------- -------- -------
Income From Investment Operations:
Net Investment Income ...................... (0.120) (0.236)@ (0.076) 0.044 0.011@
Net Gains or Losses in Securities
(both realized and unrealized) ............ 7.991 10.010 7.246 4.100 1.296
-------- --------- -------- -------- --------
Total from Investment Operations ........... 7.871 9.774 7.170 4.144 1.307
-------- --------- -------- -------- --------
Less Distributions:
Dividends from Net Investment Income ........ -- 0.078 -- 0.111 0.026
Distributions from Capital Gains ............ 4.901 4.800 1.355 0.676 0.631
-------- --------- -------- -------- --------
Total Distributions ......................... 4.901 4.878 1.355 0.787 0.657
-------- --------- -------- -------- --------
Net Asset Value, End of Period .............. $ 49.08 $ 46.11 $ 41.21 $ 35.39 $ 32.03
======== ========= ======== ======== ========
Total Return (1) ............................ 19.04% 25.85% 20.88% 13.34% 4.19%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) $505,795 $ 421,645 $333,703 $260,376 $124,223
Ratios to average net assets #:
Ratio of Expenses .......................... 1.77% 1.81% 1.87% 2.01% 2.00%
Ratio of Net Investment Income ............. (0.81%) (0.56%) (0.21%) 0.02% (0.09%)
Ratio of Expenses Without Waivers and
Assumption of Expenses .................... 1.77% 1.81% 1.87% 2.02% 2.02%
Ratio of Net Investment Income
Without Waivers and Assumptions of
Expenses .................................. (0.81%) (0.56%) (0.21%) 0.01% (0.11%)
Portfolio Turnover Rate ..................... --
</TABLE>
- -------
* Commencement of offering of class of shares.
# Short periods have been annualized.
@ Calculated based upon average shares outstanding.
(1) Total return figures do not include the effect of any sales load.
See notes to financial statements.
46
<PAGE>
Financial Highlights (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Capital Growth Fund
------------------------------------------------
Class C Institutional Shares
------------ -----------------------------------
01/02/98** 11/01/97 Year 01/25/96**
Through Through Ended Through
04/30/98 04/30/98 10/31/97 10/31/96
------------ ----------- ----------- -----------
Per Share Operating Performance
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ........................................... $ 42.45 $ 46.90 $ 41.65 $ 35.26
-------- ------- -------- -------
Income From Investment Operations:
Net Investment Income ......................................................... (0.05) 0.030 0.133@ 0.172
Net Gains or Losses in Securities (both realized and unrealized) .............. 6.280 8.221 10.164 6.336
-------- ------- -------- -------
Total from Investment Operations .............................................. 6.230 8.251 10.297 6.508
-------- ------- -------- -------
Less Distributions:
Dividends from Net Investment Income ........................................... -- -- 0.248 0.122
Distributions from Capital Gains ............................................... -- 4.901 4.800 --
-------- ------- -------- -------
Total Distributions ............................................................ -- 4.901 5.048 0.122
-------- ------- -------- -------
Net Asset Value, End of Period ................................................. $ 48.68 $ 50.25 $ 46.90 $ 41.65
======== ======= ======== =======
Total Return (1) ............................................................... 18.02% 19.57% 26.98% 18.13%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ....................................... $ 1,052 $83,202 $ 52,250 $31,556
Ratios to average net assets #:
Ratio of Expenses ............................................................. 1.13% 0.91% 0.91% 1.25%
Ratio of Net Investment Income ................................................ (0.60%) 0.04% 0.31% 0.81%
Ratio of Expenses Without Waivers and Assumption of Expenses .................. 1.13% 0.91% 0.91% 1.25%
Ratio of Net Investment Income Without Waivers and Assumption of Expenses ..... (0.60%) 0.04% 0.31% 0.81%
Portfolio Turnover Rate ........................................................ -- -- -- --
</TABLE>
- -------
** Commencement of offering of class of shares.
# Short periods have been annualized.
@ Calculated based upon average shares outstanding.
(1) Total return figures do not include the effect of any sales load.
See notes to financial statements.
47
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Financial Highlights (unaudited)
Equity 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
------------ ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period .............. $ 19.23 $ 15.98 $ 13.39 $ 12.12 $ 13.84
-------- ------- ------- ------- -------
Income From Investment Operations:
Net Investment Income ............................ 0.121 0.260 0.348 0.347 0.290
Net Gains or Losses in Securities
(both realized and unrealized) .................. 2.330 4.709 3.434 1.698 (0.477)
-------- ------- ------- ------- --------
Total from Investment Operations ................. 2.451 4.969 3.782 2.045 (0.187)
-------- ------- ------- ------- --------
Less Distributions:
Dividends from Net Investment Income .............. 0.165 0.228 0.329 0.366 0.258
Distributions from Capital Gains .................. 1.176 1.490 0.863 0.410 1.275
-------- ------- ------- ------- --------
Total Distributions ............................. 1.341 1.718 1.192 0.776 1.533
-------- ------- ------- ------- --------
Net Asset Value, End of Period .................... $ 20.34 $ 19.23 $ 15.98 $ 13.39 $ 12.12
======== ======= ======= ======= ========
Total Return (1) .................................. 13.40% 33.66% 29.79% 17.97% (1.35%)
Ratios/Supplemental Data:
Ratios to average net assets #:
Net Assets, End of Period (000 omitted) .......... $742,209 $47,373 $17,493 $11,737 $ 11,409
Ratio of Expenses ................................ 1.48% 1.50% 1.50% 1.50% 1.50%
Ratio of Net Investment Income ................... 1.44% 1.65% 2.41% 2.81% 2.31%
Ratio of Expenses Without Waivers and
Assumption of Expenses .......................... 1.48% 1.70% 2.32% 2.19% 2.02%
Ratio of Net Investment Income Without Waivers
and Assumptions of Expenses ..................... 1.44% 1.45% 1.59% 2.12% 1.79%
Portfolio Turnover Rate ........................... 71% 75% 114% 91% 75%
<CAPTION>
Equity Income Fund
-----------------------------------------------------------
Class A Class B Class C
----------- ------------------------------- -----------
07/15/92* 11/01/97 Year 05/07/96** 01/08/98**
Through Through Ended Through Through
10/31/93 04/30/98 10/31/97 10/31/96 04/30/98
----------- ---------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period .............. $ 13.14 $ 19.09 $ 15.92 $ 14.56 $ 18.62
------- -------- ------- ------- -------
Income From Investment Operations:
Net Investment Income ............................ 0.078 0.086 0.220 0.134 0.035
Net Gains or Losses in Securities
(both realized and unrealized) .................. 0.700 2.293 4.615 1.376 1.565
------- -------- ------- ------- --------
Total from Investment Operations ................. 0.778 2.379 4.835 1.510 1.600
------- -------- ------- ------- --------
Less Distributions:
Dividends from Net Investment Income .............. 0.078 0.123 0.175 0.151 0.050
Distributions from Capital Gains .................. -- 1.176 1.490 -- --
------- -------- ------- ------- --------
Total Distributions ............................. 0.078 1.299 1.665 0.151 0.050
------- -------- ------- ------- --------
Net Asset Value, End of Period .................... $ 13.84 $ 20.17 $ 19.09 $ 15.92 $ 20.17
======= ======== ======= ======= ========
Total Return (1) .................................. 5.91% 13.10% 32.87% 10.43% 13.20%
Ratios/Supplemental Data:
Ratios to average net assets #:
Net Assets, End of Period (000 omitted) .......... $15,321 24,615 $14,799 $ 560 $ 3,009
Ratio of Expenses ................................ 1.50% 1.97% 2.11% 2.25% 1.93%
Ratio of Net Investment Income ................... 1.72% 0.93% 1.06% 1.75% 0.61%
Ratio of Expenses Without Waivers and
Assumption of Expenses .......................... 2.40% 1.97% 2.13% 2.75% 1.93%
Ratio of Net Investment Income Without Waivers
and Assumptions of Expenses ..................... 0.82% 0.93% 1.05% 1.25% .61%
Portfolio Turnover Rate ........................... 54% 71% 75% 114% 71%
</TABLE>
- -------
* Commencement of operations.
** Commencement of offering of class of shares.
# Short periods have been annualized.
(1) Total return figures do not include the effect of any sales load.
See notes to financial statements.
48
<PAGE>
Financial Highlights (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small Cap
Opportunities Fund
-------------------------
Class A
-------------------------
11/01/97 5/19/97*
Through Through
04/30/98 10/31/97
------------ ------------
Per Share Operating Performance
<S> <C> <C>
Net Asset Value, Beginning of Period ............................................ $ 13.85 $ 10.00
------- -------
Income From Investment Operations:
Net Investment Income .......................................................... (0.050) (0.041)
Net Gains or Losses in Securities
(both realized and unrealized) ................................................ 2.050 3.891
-------- --------
Total from Investment Operations ............................................... 2.000 3.850
-------- --------
Less Distributions:
Dividends from Net Investment Income ............................................ -- --
Distributions from Capital Gains ................................................ -- --
-------- --------
Total Distributions ........................................................... -- --
-------- --------
Net Asset Value, End of Period .................................................. $ 15.85 $ 13.85
======== ========
Total Return (1) ................................................................ 14.44% 38.50%
Ratios/Supplemental Data:
Ratios to average net assets #:
Net Assets, End of Period (000 omitted) ........................................ $67,217 $42,635
Ratio of Expenses .............................................................. 1.49% 1.49%
Ratio of Net Investment Income ................................................. (1.01%) (1.16%)
Ratio of Expenses Without Waivers and Assumption of Expenses ................... 1.87% 2.38%
Ratio of Net Investment Income Without Waivers and Assumptions of Expenses ..... (1.39%) (2.05%)
Portfolio Turnover Rate ......................................................... 33% 7%
<CAPTION>
Small Cap
Opportunities Fund
-------------------------------------
Class B Class C
------------------------- -----------
11/01/97 5/19/97* 01/07/98**
Through Through Through
04/30/98 10/31/97 04/30/98
------------ ------------ -----------
Per Share Operating Performance
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ............................................ $ 13.81 $ 10.00 $ 13.17
-------- ------- -------
Income From Investment Operations:
Net Investment Income .......................................................... (0.086) (0.057) (0.028)
Net Gains or Losses in Securities
(both realized and unrealized) ................................................ 2.026 3.867 2.598
-------- -------- -------
Total from Investment Operations ............................................... 1.940 3.810 2.570
-------- -------- -------
Less Distributions:
Dividends from Net Investment Income ............................................ -- -- --
Distributions from Capital Gains ................................................ -- -- --
-------- -------- -------
Total Distributions ........................................................... -- -- --
-------- -------- -------
Net Asset Value, End of Period .................................................. $ 15.75 $ 13.81 $ 15.74
======== ======== =======
Total Return (1) ................................................................ 14.05% 38.10% 13.98%
Ratios/Supplemental Data:
Ratios to average net assets #:
Net Assets, End of Period (000 omitted) ........................................ $ 61,695 $38,142 $1,400
Ratio of Expenses .............................................................. 2.23% 2.24% 2.20%
Ratio of Net Investment Income ................................................. (1.75%) (1.93%) (1.71%)
Ratio of Expenses Without Waivers and Assumption of Expenses ................... 2.36% 2.88% 2.27%
Ratio of Net Investment Income Without Waivers and Assumptions of Expenses ..... (1.88%) (2.57%) (1.78%)
Portfolio Turnover Rate ......................................................... 33% 7% 33%
</TABLE>
- -------
* Commencement of operations.
** Commencement of offering of class of shares.
# Short periods have been annualized.
(1) Total return figures do not include the effect of any sales load.
See notes to financial statements.
49
<PAGE>
Growth and Income Portfolio
Portfolio of Investments April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------ ----------------------------------------- --------------
<S> <C> <C>
Long-Term Investments -- 96.1%
- ----------------------------------------------------------------------
Common Stock -- 92.0%
-----------------------------------------
Agricultural Production/Services -- 1.5%
400,000 Case Corp. $25,425,000
338,000 Deere & Co. 19,751,875
-----------
45,176,875
-----------
Automotive -- 2.1%
600,000 Ford Motor Co. 27,487,500
245,000 General Motors 16,506,875
376,000 Lear Corp.* 20,139,500
-----------
64,133,875
-----------
Banking -- 4.6%
300,000 BankAmerica Corp. 25,500,000
225,000 Comerica, Inc. 15,060,938
500,000 National City Corp. 34,625,000
225,000 NationsBank Corp. 17,043,750
300,000 Norwest Corp. 11,906,250
330,000 Southtrust Corp. 14,086,875
175,000 U.S. Bancorp 22,225,000
-----------
140,447,813
-----------
Broadcasting/Cable Television -- 2.3%
600,000 CBS Corp. 21,375,000
700,000 Comast Corp., Special Class A 25,068,750
772,241 Tele-Communications, TCI Group,
Class A* 24,904,772
-----------
71,348,522
-----------
Chemicals -- 3.3%
500,000 Crompton & Knowles Corporation 14,968,750
505,000 Dow Chemical Co. 48,827,188
700,000 Morton International, Inc. 22,400,000
145,000 Rohm & Haas Co. 15,632,813
-----------
101,828,751
-----------
Computer Software -- 3.1%
350,000 Autodesk, Inc. 16,450,000
1,042,000 Computer Associates International 61,022,125
550,100 Symantec Corp.* 15,952,900
-----------
93,425,025
-----------
</TABLE>
See notes to financial statements.
50
<PAGE>
Growth and Income Portfolio
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------ ----------------------------------------- --------------
<S> <C> <C>
Long-Term Investments -- (continued)
- ----------------------------------------------------------------------
Computers/Computer Hardware -- 6.1%
700,000 Bay Networks, Inc.* $16,406,250
1,481,500 EMC Corp.* 68,334,181
300,000 Gateway 2000 Inc.* 17,606,250
1,000,000 Quantum Corp.* 23,500,000
400,000 Storage Technology Corp.* 33,775,000
700,000 Sun Microsystems, Inc.* 28,831,250
-----------
188,452,931
-----------
Consumer Products -- 1.3%
1,100,000 Philip Morris Companies, Inc. 41,043,750
-----------
Diversified -- 1.3%
1,370,000 Canadian Pacific, Ltd. 40,329,375
-----------
Electronics/Electrical Equipment -- 1.9%
500,000 Linear Technology Corp. 40,250,000
300,000 Texas Instruments 19,218,750
-----------
59,468,750
-----------
Entertainment/Leisure -- 3.0%
400,000 Carnival Corp., Class A 27,825,000
549,700 GTECH Holdings Corp. 19,720,488
300,000 Time Warner, Inc. 23,550,000
384,500 Viacom, Inc. Class B* 22,301,000
-----------
93,396,488
-----------
Environmental Services -- 0.6%
650,000 Allied Waste Industries, Inc.* 17,875,000
-----------
Financial Services -- 2.6%
328,625 Associates First Capital Corp. 24,564,719
200,000 Beneficial Corporation 26,075,000
375,000 Morgan Stanley, Dean Witter,
Discover and Co. 29,578,125
-----------
80,217,844
-----------
Food/Beverage Products -- 3.2%
1,000,000 PepsiCo., Inc. 39,687,500
550,000 Quaker Oats Co. 28,600,000
400,000 Unilever NV, ADR 29,850,000
-----------
98,137,500
-----------
</TABLE>
See notes to financial statements.
51
<PAGE>
Growth and Income Portfolio
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------ ----------------------------------------- --------------
<S> <C> <C>
Long-Term Investments -- (continued)
- ----------------------------------------------------------------------
Health Care/Health Care Services -- 6.9%
175,000 Becton, Dickinson & Co. $12,184,375
601,000 Columbia/HCA Healthcare Corp. 19,795,438
250,000 Guidant Corp. 16,718,750
480,000 Foundation Health Systems, Inc.* 13,890,000
1,900,000 HEALTHSOUTH Corp.* 57,356,250
500,000 Integrated Health Services, Inc. 19,281,250
514,500 Tenet Healthcare Corp.* 19,261,594
400,000 Travelers, Inc. 24,475,000
250,000 United Healthcare Corp. 17,562,500
150,000 Wellpoint Health Networks, Inc. 10,818,750
-----------
211,343,907
-----------
Insurance -- 4.3%
720,000 ACE, Ltd.# 27,270,000
400,000 Allstate Corp. 38,500,000
225,000 Exel Ltd. (Bermuda ) 16,804,688
250,000 MGIC Investment Corp. 15,750,000
350,000 NAC Re Corp. 17,500,000
325,000 Reliastar Financial Corp. 14,828,125
-----------
130,652,813
-----------
Manufacturing -- 3.3%
241,000 Honeywell, Inc. 22,443,125
762,500 Ingersoll-Rand Co. 35,122,656
440,000 Johnson Controls 26,125,000
410,000 Parker Hannifin Corp. 18,296,250
-----------
101,987,031
-----------
Metals/Mining -- 1.6%
550,000 Newmont Mining Corp. 17,703,125
250,000 Reynolds Metals Company 16,500,000
275,000 RIO Tinto PLC (United Kingdom) 16,018,750
-----------
50,221,875
-----------
Office Equipment -- 1.7%
450,000 Xerox Corp. 51,075,000
-----------
Oil & Gas -- 7.2%
790,000 Apache Corp. 27,946,250
403,100 Coastal Corp. 28,796,456
850,000 El Paso Natural Gas Co. 31,396,875
</TABLE>
See notes to financial statements.
52
<PAGE>
Growth and Income Portfolio
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------ ----------------------------------------------- --------------
<S> <C> <C>
Long-Term Investments -- (continued)
- ----------------------------------------------------------------------------
520,000 Mobil Corp. $41,080,000
717,900 Texaco, Inc. 44,150,850
590,000 Tosco Corp. 21,018,750
759,900 USX-Marathon Group 27,213,919
-----------
221,603,100
-----------
Oil Service -- 3.2%
420,000 Cooper Cameron Corporation 27,903,750
475,000 Dresser Industries, Inc. 25,115,625
825,000 McDermott International, Inc.* 34,134,375
139,300 Western Atlas, Inc. 11,004,700
-----------
98,158,450
-----------
Packaging -- 1.1%
200,000 Ball Corp. 7,725,000
599,900 Owens-Illinois, Inc.* 23,733,544
-----------
31,458,544
-----------
Paper/Forest Products -- 1.1%
850,000 Willamette Industries, Inc. 32,990,625
-----------
Pharmaceuticals -- 3.7%
243,000 Bristol-Myers Squibb Co. 25,727,625
708,000 Pharmacia & Upjohn, Inc. 29,780,250
400,000 Schering-Plough Corp. 32,050,000
450,000 SmithKline Beecham PLC, ADR
(United Kingdom) 26,803,125
-----------
114,361,000
-----------
Printing & Publishing -- 1.9%
650,000 Dun & Bradstreet Corp. 23,075,000
510,000 New York Times Company, Class A 36,178,125
-----------
59,253,125
-----------
Real Estate Investment Trust -- 2.9%
307,000 Arden Realty Group, Inc. 8,615,188
211,400 Boston Properties, Inc.* 6,989,413
655,800 Duke Realty Investments, Inc. 15,616,238
685,173 Equity Office Properties Trust 19,484,607
330,000 Equity Residential Properties Trust 16,211,250
488,700 Public Storage, Inc. 15,027,525
574,100 Security Capital US Realty, ADR
(Luxembourg) 7,520,710
-----------
89,464,931
-----------
</TABLE>
See notes to financial statements.
53
<PAGE>
Growth and Income Portfolio
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------ ------------------------------------ ----------------
<S> <C> <C>
Long-Term Investments -- (continued)
- -------------------------------------------------------------------
Restaurants/Food Services -- 0.7%
850,000 Wendy's International, Inc. $ 20,453,125
-------------
Retailing -- 7.7%
825,000 American Stores Co. 19,800,000
394,200 CVS Corp. 29,072,250
441,000 Dayton-Hudson Corp. 38,504,813
575,000 Federated Department Stores* 28,282,813
933,900 Kroger Co.* 39,107,063
850,000 Office Depot, Inc.* 28,156,250
500,000 Neiman-Marcus Group, Inc. 18,343,750
900,000 Safeway, Inc.* 34,425,000
-------------
235,691,939
-------------
Telecommunications -- 4.9%
300,000 AT&T Corp. 18,018,750
350,000 Bell Atlantic Corp. 32,746,875
550,000 BellSouth Corp. 35,303,125
368,500 Sprint Corp. 25,173,156
882,500 WorldCom, Inc.* 37,754,409
-------------
148,996,315
-------------
Electric Utilities -- 2.9%
600,000 FPL Group Inc. 37,237,500
500,000 GPU, Inc. 19,812,500
750,000 Pinnacle West Capital Corp. 33,187,500
-------------
90,237,500
-------------
Total Common Stock 2,823,231,779
(Cost $2,096,726,623) -------------
Preferred Stock -- 1.7%
------------------------------------
Financial Services -- 0.8%
100,000 Fleetwood Capital Trust, 6%# 5,703,100
143,000 Suiza Capital Trust, 5.5%# 7,030,452
165,000 Sun Financing Inc.7%# 4,125,000
150,000 Union Pacific Capital Trust, 6.25% 7,862,100
-------------
24,720,652
-------------
Manufacturing -- 0.2%
240,000 Ingersoll-Rand Co. 6.75%# 5,880,000
-------------
</TABLE>
See notes to financial statements.
54
<PAGE>
Growth and Income Portfolio
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------- ------------------------------------------ --------------
<S> <C> <C>
Long-Term Investments -- (continued)
- ------------------------------------------------------------------------------
Telecommunications -- 0.7%
50,000 AirTouch Communications, 4.25% $ 3,840,625
100,000 Viacom International
(TCI Pacific), 5% 18,250,000
-----------
22,090,625
-----------
Total Preferred Stock 52,691,277
(Cost $42,781,502) -----------
Warrants -- 0.0%
------------------------------------------
Real Estate Investment Trust -- 0.0%
15,742 Security Capital Group, Ser. B,*
09/18/98 44,274
-----------
Principal
Amount
(USD)
Convertible Corporate Notes & Bonds -- 2.4%
----------------------------------------------------------
Biotechnology -- 0.2%
$4,000,000 Centocor Inc. 4.75%, 02/15/1905 4,360,000
-----------
Computers/Computer Hardware -- 0.2%
3,600,000 EMC Corp.,# 3.25%, 03/15/1902 7,630,956
-----------
Electronics/ Electrical Equipment -- 0.4%
2,000,000 National Grid Company PLC
(United Kingdom) 4.25%,
02/17/1908 3,629,325
7,000,000 Xilinx, Inc. 5.25%, 11/01/1902 7,481,950
-----------
11,111,275
-----------
Financial Services -- 0.2%
6,600,000 South African Pulp & Paper
Industries, BVI Finance Ltd.
7.50%, 08/01/1902 6,048,240
-----------
Health Care/Health Care Services -- 0.6%
5,000,000 Atria Communities, Inc.# 5.00%,
10/15/1902 4,981,250
6,000,000 Concentra Managed Care, Inc.
4.50%, 03/15/1903 6,000,960
5,000,000 Res Care Inc.,# 6.00%, 12/01/1904 7,200,000
-----------
18,182,210
-----------
</TABLE>
See notes to financial statements.
55
<PAGE>
Growth and Income Portfolio
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ------------ --------------------------------- ----------------
<S> <C> <C>
Long-Term Investments -- (continued)
- ----------------------------------------------------------------
Media/Advertising -- 0.3%
$8,000,000 Clear Channel Communications,
Inc. 2.63%, 04/01/1903 $ 7,950,000
-------------
Retailing -- 0.2%
4,000,000 Federated Department Stores*
5.00% 10/01/1903 5,937,880
-------------
Telecommunications -- 0.1%
3,500,000 Tel-Save Holdings Inc.# 4.50%,
09/15/1902 3,603,915
-------------
Utilities -- 0.2%
102,000 Houston Industries, Inc., 7.00%,
07/01/1900 7,076,250
-------------
Total Convertible Corporate 71,900,726
-------------
Notes & Bonds
(Cost $56,698,825)
Total Long-Term Investments 2,947,868,056
(Cost $2,196,206,950)
================================
Short-Term Investments -- 4.2%
- ----------------------------------------------------------------
Commercial Paper -- 2.6%
---------------------------------
20,000,000 American Express Co., 5.50%,
05/27/1998 19,920,556
20,000,000 Associates Corporation, 5.49%,
06/01/1998 19,905,450
20,000,000 Ford Motor Credit Company,
5.50%, 05/28/1998 19,917,500
20,000,000 General Electric Capital Corp.,
5.50%, 05/14/1998 19,960,278
-------------
Total Commercial Paper 79,703,784
(Cost $79,703,784) -------------
Time Deposit -- 1.6%
---------------------------------
Deutsche Bank, AG
48,700,000 (Germany) 5.53%, 05/01/98 48,707,483
(Cost $48,707,483)
--------------------------------
Short-Term Investments -- (continued)
- ----------------------------------------------------------------
</TABLE>
See notes to financial statements.
56
<PAGE>
Growth and Income Portfolio
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ---------- ------------------------------ -----------------
<S> <C> <C>
Total Short-Term Investments $ 128,411,267
(Cost $128,411,267)
========== ==============================
Total Investments -- 100.3% $3,076,279,323
(Cost $2,324,618,217)
========== ==============================
</TABLE>
See notes to financial statements.
57
<PAGE>
Capital Growth Portfolio
Portfolio of Investments April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------ ------------------------------------------- ---------------
<S> <C> <C>
Long-Term Investments -- 95.7%
- -------------------------------------------------------------------------
Common Stock -- 95.7%
-------------------------------------------
Aerospace -- 4.1%
517,500 Precision Castparts Corp. $ 32,149,688
437,500 Sundstrand Corp. 30,214,844
------------
62,364,532
------------
Agricultural Production / Services -- 0.6%
153,500 Case Corp. 9,756,844
------------
Airlines -- 0.5%
124,000 Continental Airlines, Inc., Class B* 7,300,500
------------
Automotive -- 2.8%
500,000 Lear Corp.* 26,781,250
300,000 Tower Automotive, Inc. 15,993,750
------------
42,775,000
------------
Banking -- 4.2%
250,000 Cullen/Frost Bankers, Inc. 14,625,000
315,000 Southtrust Corp. 13,446,563
310,640 TCF Financial Corp. 10,115,215
527,000 Zions Bancorporation 26,942,875
------------
65,129,653
------------
Biotechnology -- 0.3%
250,000 Respironics, Inc. 4,171,875
------------
Broadcasting -- 5.1%
700,000 Comast Corp., Special Class A 25,068,750
600,000 Groupe AB, SA ADR (France) 3,562,500
1,125,000 Tele-Communications, Inc., Liberty
Media Group, Class A* 37,335,938
200,000 TCA Cable TV, Inc. 12,350,000
------------
78,317,188
------------
Business Services -- 7.1%
505,000 American Business Information, Inc. 7,196,250
375,000 CDI Corp.* 14,507,813
150,000 CORT Business Services Corp. 5,990,625
100,000 Fiserv, Inc. 6,537,500
1,000,000 GTECH Holdings Corp.* 35,875,000
900,000 Interim Services, Inc. 29,362,500
57,800 ITT Educational Services, Inc.* 1,708,713
</TABLE>
See notes to financial statements.
58
<PAGE>
Capital Growth Portfolio
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ---------- ----------------------------------------- --------------
<S> <C> <C>
Long-Term Investments -- (continued)
- --------------------------------------------------------------------
200,000 Sungard Data Systems, Inc. $ 7,125,000
-----------
108,303,401
-----------
Chemicals -- 3.0%
200,000 Crompton & Knowles Corporation 5,987,500
435,000 Cytec Industries, Inc.* 23,816,250
145,000 Engelhard Corporation 3,063,125
75,000 Rohm & Knowles Corporation 8,085,938
158,000 The Carbide/Graphite Group, Inc.* 5,095,500
-----------
46,048,313
-----------
Computer Software -- 2.4%
652,400 American Business Information, Inc.* 8,807,400
734,000 American Management Systems, Inc. 21,240,125
150,000 Autodesk, Inc. 7,050,000
-----------
37,097,525
-----------
Computers/Computer Hardware -- 6.8%
475,000 Bay Networks, Inc.* 11,132,813
700,000 EMC Corp.* 32,287,500
250,000 Lexmark International Group, Inc.
(Germany) 14,468,750
350,000 Quantum Corp.* 8,225,000
375,000 Solectron Corp.* 16,617,188
250,000 Storage Technology Corp.* 21,109,375
-----------
103,840,626
-----------
Electronics/Electrical Equipment -- 2.7%
200,000 Linear Technology Corp. 16,100,000
225,000 MRV Communications Inc. 6,046,875
238,000 Teleflex, Inc. 10,115,000
250,000 Teradyne Inc.* 9,125,000
-----------
41,386,875
-----------
Entertainment/Leisure -- 1.1%
250,000 Carnival Corp., Class A 17,390,625
-----------
Financial Services -- 4.2%
300,000 Bear Stearns Companies, Inc. 17,118,750
100,000 Beneficial Corporation 13,037,500
38,000 Donaldson Lufkin & Jenrette* 3,602,875
300,000 Finova Group, Inc. 17,568,750
99,500 The PMI Group, Inc.* 8,084,375
-----------
59,412,250
-----------
</TABLE>
See notes to financial statements.
59
<PAGE>
Capital Growth Portfolio
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ---------- ------------------------------------------ --------------
<S> <C> <C>
Long-Term Investments -- (continued)
- ---------------------------------------------------------------------
Health Care/Health Care Services -- 12.2%
250,000 Concentra Managed Care, Inc.* $ 7,781,250
433,000 Foundation Health Systems, Inc.* 12,529,938
351,000 Health Care & Retirement Corp.* 14,303,250
798,500 HEALTHSOUTH Corp.* 24,104,719
200,000 Integrated Health Services, Inc. 7,712,500
150,000 Lincare Holdings, Inc.* 12,168,750
990,000 Tenet Healthcare Corp.* 37,063,125
150,000 Total Renal Care Holdings Company 4,968,750
300,000 Trigon Healthcare, Inc.* 9,112,500
419,000 Universal Health Services, Inc.,
Class B* 24,118,688
450,000 Wellpoint Health Networks, Inc. 32,456,250
-----------
186,319,720
-----------
Insurance -- 8.6%
485,000 ACE, Ltd.# 18,369,375
142,000 CMAC Investment Corp. 9,167,875
190,000 Exel Ltd. (Bermuda) 14,190,625
200,000 MGIC Investment Corp. 12,600,000
300,000 Nationwide Financial Services, Inc.,
Class A 13,012,500
950,000 Reliance Group Holdings, Inc. 16,446,875
300,000 Reliastar Financial Corp. 13,687,500
374,250 SunAmerica, Inc. 18,689,109
195,000 Transatlantic Holdings, Inc. 14,978,438
-----------
131,142,297
-----------
Machinery & Engineering Equipment -- 2.1%
400,000 Applied Power, Inc., Class A 14,950,000
250,000 Cooper Cameron Corporation 16,609,375
-----------
31,559,375
-----------
Manufacturing -- 4.9%
229,000 Dexter Corp. 9,460,563
170,000 Johnson Controls 10,093,750
250,000 Kennametal Inc. 13,328,125
100,000 Parker Hannifin Corp. 4,462,500
297,500 Pentair, Inc. 12,866,875
700,000 United Dominion Industries, Ltd. 23,931,250
-----------
74,143,063
-----------
</TABLE>
See notes to financial statements.
60
<PAGE>
Capital Growth Portfolio
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------ ----------------------------------------------- ---------------
<S> <C> <C>
Long-Term Investments -- (continued)
- -----------------------------------------------------------------------------
Media/Advertising -- 0.9%
300,000 Omnicom Group, Inc. $ 14,212,500
------------
Office/Business Equipment -- 1.3%
600,000 Office Depot, Inc.* 19,875,000
------------
Oil & Gas -- 3.4%
225,000 Camco International, Inc. 15,271,875
400,000 ENSCO International Inc. 11,300,000
250,000 Smith International* 14,687,500
300,000 Tosco Corp. 10,687,500
------------
51,946,875
------------
Packaging -- 1.0%
400,100 Owens-Illinois, Inc.* 15,828,956
------------
Pharmaceuticals -- 0.2%
227,094 PharMerica, Inc. 3,150,929
------------
Printing & Publishing -- 0.8%
400,000 World Color Press, Inc. 12,800,000
------------
Real Estate Investment Trust -- 3.9%
250,000 Beacon Capital Partners#* 5,125,000
208,900 Brandywine Realty Trust 4,752,475
190,000 Duke Realty Investments, Inc. 4,524,375
393,764 Equity Office Properties Trust 11,197,664
200,000 Equity Residential Properties Trust 9,825,000
400,000 Public Storage, Inc. 12,300,000
320,000 Security Capital US Realty, ADR
(Luxembourg) 4,192,000
140,000 Starwood Lodging Trust 7,026,250
------------
58,942,764
------------
Restaurants/Food Service -- 1.0%
1,000,000 Darden Restaurants, Inc. 16,000,000
------------
Retailing -- 6.1%
450,000 BJ Services Co. 16,875,000
170,000 CVS Corp. 12,537,500
299,000 Intimate Brands, Inc. 8,671,000
300,000 Kroger Co.* 12,562,500
500,000 Neiman-Marcus Group, Inc. 18,343,750
150,000 Proffitt's, Inc.* 5,962,500
425,000 TJX Companies, Inc. 18,806,250
------------
93,758,500
------------
</TABLE>
See notes to financial statements.
61
<PAGE>
Capital Growth Portfolio
Portfolio of Investments April 30, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ---------------- ------------------------------------- ----------------
<S> <C> <C>
Long-Term Investments -- (continued)
- ------------------------------------------------------------------------
Telecommunications -- 0.9%
510,000 Aspect Telecommunications Corp.* $ 14,662,500
--------------
Textiles -- 0.4%
124,500 Liz Claiborne, Inc. 6,123,844
--------------
Utilities -- 2.2%
375,000 CMS Energy Corp. 16,382,813
400,000 Pinnacle West Capital Corp. 17,700,000
--------------
34,082,813
--------------
Waste Management -- 0.9%
105,000 Allied Waste Industries, Inc.* 2,887,500
215,000 U.S.A. Waste Services, Inc. 10,548,438
--------------
13,435,938
--------------
Total Common Stock 1,461,280,281
(Cost $1,015,619,439) --------------
Principal
Amount
(USD)
U.S. Government Obligations -- 0.0%
-------------------------------------
$ 565,000 U.S. Treasury Note, 6.875%, 5/15/06 605,249
--------------
(Cost $569,588)
Total Long-Term Investments 1,461,885,530
(Cost $1,016,189,027)
=====================================
Short-Term Investments -- 3.2%
- ------------------------------------------------------------------------
Time Deposit -- 3.2%
-------------------------------------
Deutsche Bank, AG
48,898,512 (Germany) 48,898,512
(Cost $48,898,512)
-------------------------------------
Total Investments -- 98.9% $1,510,784,042
(Cost $1,065,087,539)
=====================================
</TABLE>
Index
* -- Non income producing security.
# -- Security may only be sold to qualified institutional buyers.
ADR -- American Depository Receipt.
See notes to financial statements.
62
<PAGE>
Statement of Assets and Liabilities April 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth and Capital
Income Growth
Portfolio Portfolio
----------------- -----------------
<S> <C> <C>
ASSETS:
Investment securities, at value (Note 1) ............ $3,076,279,323 $1,510,784,042
Cash ................................................ 98,486 979
Receivables:
Investment securities sold ......................... 1,427,953 21,053,092
Interest and dividends ............................. 3,304,496 511,250
Other assets ........................................ 30,280 43,706
-------------- --------------
Total assets ...................................... 3,081,140,538 1,532,393,069
-------------- --------------
LIABILITIES:
Payable for investment securities purchased ......... 12,289,740 4,520,370
Accrued liabilities: (Note 2) .......................
Administration fees ................................ 126,399 62,555
Investment advisory fees ........................... 1,010,193 500,436
Custodian .......................................... 37,873 10,341
Other .............................................. 212,663 214,733
-------------- --------------
Total Liabilities ................................. 13,676,868 5,308,435
-------------- --------------
NET ASSETS APPLICABLE TO INVESTORS'
BENEFICIAL INTERESTS ................................. $3,067,463,670 $1,527,084,634
============== ==============
Cost of Investments ................................. $2,324,618,217 $1,065,087,539
============== ==============
</TABLE>
See notes to financial statements.
63
<PAGE>
Statement of Operations For the six months ended April 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth and Capital
Income Growth
Portfolio Portfolio
---------------- ---------------
<S> <C> <C>
INVESTMENT INCOME:
Dividend ........................................... $ 18,631,084 $ 5,081,504
Interest ........................................... 5,786,647 1,751,692
Foreign taxes withheld ............................. (160,832) (14,645)
------------ ------------
Total investment income .......................... 24,256,899 6,818,551
------------ ------------
EXPENSES: (Note 2) ...................................
Investment Advisory fees ........................... 5,634,963 2,794,333
Administration fees ................................ 704,370 349,292
Custodian fees ..................................... 84,525 48,901
Professional fees .................................. 59,507 59,506
Trustees fees and expenses ......................... 28,175 13,971
Other .............................................. 109,542 87,197
------------ ------------
Total expenses ................................... 6,621,082 3,353,200
------------ ------------
Net investment income .............................. 17,635,817 3,465,351
------------ ------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investments ................... 319,985,046 132,875,936
Change in net unrealized appreciation on
Investments ....................................... 141,787,039 121,636,779
------------ ------------
Net realized and unrealized gain on investments..... 461,772,085 254,512,715
------------ ------------
Net increase in net assets from operations ......... $479,407,902 $257,978,066
============ ============
</TABLE>
See notes to financial statements.
64
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Statement of Changes in Net Assets For the periods indicated (unaudited)
Growth and
Income
Portfolio
-----------------------------------
11/01/97 For the
Through Year Ended
04/30/98 10/31/97
----------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income ....................................................... $ 17,635,817 $ 39,881,845
Net realized gain on investments ............................................ 319,985,046 365,628,734
Change in net unrealized appreciation on investments ........................ 141,787,039 231,319,779
-------------- --------------
Increase in net assets from operations ...................................... 479,407,902 636,830,358
-------------- --------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Contributions ............................................................... 789,065,900 788,831,006
Withdrawals ................................................................. (864,320,558) (854,698,879)
-------------- --------------
Net increase (decrease) from transactions in investors' beneficial interests (75,254,658) (65,867,873)
-------------- --------------
Net increase in net assets .................................................. 404,153,244 570,962,485
NET ASSETS:
Beginning of period ......................................................... 2,663,310,426 2,092,347,941
-------------- --------------
End of period ............................................................... $3,067,463,670 $2,663,310,426
============== ==============
<CAPTION>
Capital
Growth
Portfolio
-------------------------------------
11/01/97 For the
Through Year Ended
04/30/98 10/31/97
----------------- -------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income ....................................................... $ 3,465,351 $ 9,583,314
Net realized gain on investments ............................................ 132,875,936 141,951,607
Change in net unrealized appreciation on investments ........................ 121,636,779 146,677,178
-------------- -----------------
Increase in net assets from operations ...................................... 257,978,066 298,212,099
-------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Contributions ............................................................... 316,131,204 936,937,099
Withdrawals ................................................................. (362,497,483) (1,009,808,684)
-------------- -----------------
Net increase (decrease) from transactions in investors' beneficial interests (46,366,279) (72,871,585)
-------------- -----------------
Net increase in net assets .................................................. 211,611,787 225,340,514
NET ASSETS:
Beginning of period ......................................................... 1,315,472,847 1,090,132,333
-------------- -----------------
End of period ............................................................... $1,527,084,634 $ 1,315,472,847
============== =================
</TABLE>
See notes to financial statements
65
<PAGE>
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies -- Growth and Income
Portfolio ("GIP") and Capital Growth Portfolio ("CGP"), (the "Portfolios") are
separately registered under the Investment Company Act of 1940, as amended, as
non-diversified, open end management investment companies organized as trusts
under the laws of the State of New York. Each declaration of trust permits the
Trustees to issue beneficial interests in the respective Portfolios. The GIP
and the CGP commenced operations on November 19, 1993.
The following is a summary of significant accounting policies followed by the
Portfolios:
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 -- Equity securities, purchased options and
futures are valued at the last sale price on the exchange on which they are
primarily traded, including the NASDAQ National Market. Securities for which
sale prices are not available and other over-the-counter securities are
valued at the last quoted bid price. Bonds and other fixed income securities
(other than short-term obligations), including listed issues, are valued on
the basis of valuations supplied by pricing services or by matrix pricing
systems of a major dealer in bonds. Short-term debt securities with 61 days
or more to maturity at time of purchase are valued, through the 61st day
prior to maturity, at market value based on quotations obtained from market
makers or other appropriate sources; thereafter, the value on the 61st day is
amortized on a straight-line basis over the remaining number of days to
maturity. Short-term investments with 60 days or less to maturity at time of
purchase are valued at amortized cost, which approximates market. Portfolio
securities for which there are no such quotations or valuations are valued at
fair value as determined in good faith by or at the direction of the
Trustees.
B. Repurchase agreements -- It is the Portfolios' policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government Agency
securities. All collateral is held by the Trusts' custodian bank,
subcustodian, or a bank with which the custodian bank has entered into a
subcustodian agreement, or is segregated in the Federal Reserve Book Entry
System. In connection with transactions in repurchase agreements, if the
seller defaults and the value of the collateral declines, or if the seller
enters an insolvency proceeding, realization of the collateral by the
Trusts may be delayed or limited.
C. Futures contracts -- When a Portfolio enters into a futures contract, it
makes an initial margin deposit in a segregated account, either in cash or
liquid securities. Thereafter, the futures contract is marked to market and
the portfolio makes (or receives) additional cash payments daily to the
broker. Changes in the value of the contract are recorded as unrealized
appreciation/depreciation until the contract is closed or settled.
The GIP invested a portion of its liquid assets in long stock index futures
contracts to more fully participate in the market. Use of long futures
contracts subject the Portfolio to risk of loss up to the amount of the
value of the contract.
The Portfolios may enter into futures contracts only on exchanges or boards
of trade. The exchange or board of trade acts as the counterparty to each
futures transaction, therefore, the Portfolio's credit risk is limited to
failure of the exchange or board of trade.
As of April 30, 1998, the Portfolios had no outstanding futures contracts.
D. Written options -- When a Portfolio writes an option on a futures
contract, an amount equal to the premium received by the Portfolio is
included in the Portfolio's Statement of Assets and Liabilities as an asset
and corresponding liability. The amount
66
<PAGE>
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
of the liability is adjusted daily to reflect the current market value of
the written options and the change is recorded in a corresponding
unrealized gain or loss account. When a written option expires on its
stipulated expiration date, or when a closing transaction is entered into,
the related liability is extinguished and the Portfolio realizes a gain (or
loss if the cost of the closing transaction exceeds the premium received
when the option was written).
The GIP writes options on stock index securities futures. These options are
settled for cash and subject the Portfolio to market risk in excess of the
amounts that are reflected in the Statement of Assets and Liabilities. The
Portfolio, however, is not subject to credit risk on written options as the
counterparty has already performed its obligation by paying a premium at
the inception of the contract.
As of April 30, 1998 the Portfolios had no outstanding written options.
E. Security transactions and investment income -- Investment transactions
are accounted for on the trade date (the date the order to buy or sell is
executed). Securities gains and losses are calculated on the identified
cost basis. Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date.
F. Organization costs -- Organization and initial registration costs
incurred in connection with establishing the Portfolios have been deferred
and are being amortized on a straight-line basis over a sixty month period
beginning at the commencement of operations of each Portfolio.
G. Federal income taxes -- The Portfolios intend to continue to qualify as
partnerships and therefore net investment income and net realized gains are
taxed to the partners. Accordingly, no tax provisions are recorded by the
Portfolios. The investors in the Portfolios must take into account their
proportionate share of the Portfolios' income, gains, losses, deductions,
credits and tax preference items in computing their federal income tax
liability, without regard to whether they have received any cash
distributions from the Portfolio. The Portfolios do not intend to distribute
to investors their net investment income or their net realized gains, if any.
It is intended that the Portfolios will be managed in such a way that
investors in the Portfolio will be able to satisfy the requirements of
subchapter M of the Internal Revenue Code to be taxed as regulated investment
companies.
H. Expenses -- Expenses directly attributable to a Portfolio are charged to
that Portfolio; other expenses are allocated on another reasonable basis.
2. Fees and Other Transactions with Affiliates
A. Investment advisory fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank ("Chase" or the "Advisor") acts as the
Investment Advisor to the Portfolios. Chase is a direct wholly-owned
subsidiary of The Chase Manhattan Corporation. As Investment Advisor, Chase
supervises the investments of the Portfolios and for such services is paid
a fee.
The fee is computed daily and paid monthly at an annual rate equal to 0.40%
of the Portfolios' average daily net assets.
Chase Asset Management, Inc. ("CAM"), a registered investment advisor, is
the sub-investment advisor to each of the Portfolios pursuant to a
Sub-Investment Advisory Agreement between CAM and Chase. CAM is a wholly
owned subsidiary of Chase and is entitled to receive a fee, payable by
Chase from its advisory fee, at an annual rate equal to 0.20% of each
Portfolio's average daily net assets.
B. Custodial fees -- Chase, as Custodian provides safekeeping services for
the Portfolios' securities. Compensation for such services are presented in
the Statement of Operations as custodian fees.
C. Administration fee -- Pursuant to an Administration Agreement, Chase
(the "Administrator") provides certain administration services to the
Trusts. For these
67
<PAGE>
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
services and facilities, the Administrator receives from each Portfolio a
fee computed at the annual rate equal to 0.05% of the respective
Portfolio's average daily net assets.
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>
GIP CGP
----------------- ---------------
<S> <C> <C>
Purchases (excluding U.S. Government) ......... $1,446,015,527 $535,101,869
Sales (excluding U.S. Government) ............. 1,145,159,909 448,186,593
Sales of U.S. Government ...................... 60,980,313 --
</TABLE>
The portfolio turnover rates of GIP and CGP for the year ended were 44% and 33%
respectively.
4. Retirement Plan -- The Portfolios have adopted an unfunded noncontributory
defined benefit pension plan covering all independent trustees of the
Portfolios who will have served as an independent trustee for at least five
years at the time of retirement. Benefits under this plan are based on
compensation and years of service. Pension expenses for the six months ended
April 30, 1998, included in Trustees Fees and Expenses in the Statement of
Operations, and accrued pension liability included in other accrued
liabilities, respectively, in the Statement of Assets and Liabilities were as
follows:
<TABLE>
<CAPTION>
Accrued
Pension Pension
Expenses Liability
---------- ----------
<S> <C> <C>
GIP ......... $11,966 $80,296
CGP ......... 5,894 39,159
</TABLE>
68
<PAGE>
Chase Vista Funds Service Center
P.O. Box 419392
Kansas City, MO 64179
Investment Adviser, Administrator,
Shareholder and Fund Servicing Agent
and Custodian
The Chase Manhattan Bank
Distributor
Vista Fund Distributors, Inc.
Transfer Agent
DST Systems, Inc.
Legal Counsel
Simpson Thacher & Bartlett
Independent Accountants
Price Waterhouse LLP
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 therto.
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 CVEQTY-3-498
