CHASE VISTA INTERNATIONAL EQUITY FUNDS
[CHASE VISTA FUNDS(SM) LOGO]
ANNUAL
REPORT
-----------------------
Chase Vista(SM). Make the Powerful Connection.
CHASE VISTA EUROPEAN FUND
CHASE VISTA SOUTHEAST ASIAN FUND
CHASE VISTA JAPAN FUND
CHASE VISTA LATIN AMERICAN EQUITY FUND
CHASE VISTA INTERNATIONAL EQUITY FUND
October 31, 1998 ANIEI-2-1298
<PAGE>
Highlights
European markets performed well, while Japanese, Asian and Latin American
markets declined.
o Generally favorable economic conditions, falling interest rates and the
ongoing wave of corporate restructurings helped lift European stock prices.
o Japan's weak economy and troubled banking sector kept stock prices under
pressure.
o The Asian economic crisis weighed heavily on stock markets along the Pacific
Rim and had a major spillover effect on most Latin American markets.
- --------------------------------------------------------------------------------
CONTENTS
- --------------------------------------------------------------------------------
Chairman's Letter 3
Chase Vista European Fund
Fund Commentary o Portfolio of Investments 4
Chase Vista Southeast Asian Fund
Fund Commentary o Portfolio of Investments 15
Chase Vista Japan Fund
Fund Commentary o Portfolio of Investments 24
Chase Vista Latin American Equity Fund
Fund Commentary o Portfolio of Investments 31
Chase Vista International Equity Fund
Fund Commentary 38
Fund Financial Statements 43
Portfolio Financial Statements 62
- --------------------------------------------------------------------------------
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 Family of Mutual Funds
Chairman's Letter
December 1, 1998
Dear Shareholder:
We are pleased to present this annual report for the following Chase Vista
International Funds for the year ended October 31, 1998:
European Fund
Southeast Asian Fund
Japan Fund
Latin American Equity Fund
International Equity Fund
European stocks record good investment results
amidst worries in Asia
Generally good economic and corporate news propelled European stocks higher.
Southeast Asian and Latin American markets were negatively affected by the
economic crisis along the Pacific Rim. Japanese markets declined due to
lingering economic woes and troubles in the country's banking industry.
In most European countries, interest rates fell and inflation was benign.
The decline in rates helped make equities more attractive compared to
fixed-rate instruments. Europe also benefited from the ongoing wave of
corporate restructurings, which has helped companies reduce costs and
improve productivity.
The Japanese stock market struggled throughout much of the period. Early in
1998, stocks advanced strongly after the government announced it would unveil
an economic stimulus package, but that rally faded when, upon closer
inspection, investors saw that the plan was heavy on public works projects and
light on tax reduction.
The Asian economic crisis weighed heavily on stock prices along the Pacific Rim
during the last three months of 1997, but some countries, particularly those
that elected to abide by the International Monetary Fund's recommendations, saw
a slight rebound in their markets midway through the period.
Latin American markets recorded mixed investment results, as the economic
problems in southeast Asia had a spillover effect on its performance. Latin
American markets were also negatively affected by the global liquidity crisis
ignited last summer by the financial crisis in Russia.
Sincerely yours,
/s/ Fergus Reid
Fergus Reid
Chairman
3
<PAGE>
Chase Vista European Fund
as of October 31, 1998
(unaudited)
Fund Facts
<TABLE>
<S> <C> <C>
Objective Capital growth
Primary investments Common stocks of established
companies
in Western Europe
Suggested investment time frame Long-Term
Market benchmark MSCI Europe Index
Lipper Funds category European Funds Average
Class A Class B
------------- ------------
Inception date 11/2/95 11/3/95
Newspaper symbol Europe Not listed
Net assets $33.7 Million $9.4 Million
</TABLE>
Investment Style/Market Cap
- -------------------------
| | | |
| | | X | Large
| | | |
- -------------------------
| | | |
| | | | Med.
| | | |
- -------------------------
| | | |
| | | | Small
| | | |
- -------------------------
Value Blend Growth
4
<PAGE>
Chase Vista European Fund
as of October 31, 1998
(unaudited)
How the Fund Performed
Chase Vista European Fund, which seeks long-term growth of capital by investing
primarily in the common stocks of established companies in Western Europe,
provided shareholders with a total return of 18.71% (Class A shares, without
sales charges) for the one-year period ended October 31, 1998.
How the Fund Was Managed
Good stock selection, a favorable economic environment and optimism over the
creation of the 11-country European Monetary Union were chiefly responsible for
the Fund's investment results.
In the first six months of the fiscal year, the Fund enjoyed good performance
from companies across many industries that benefited from continued growth on
the continent. These included ACS, a building and construction company in
Spain; BNP, a French bank; and Mannesmann, a German engineering and
telecommunications company.
As the period progressed and signs of a temporary slowdown in economic activity
began to affect investor sentiment, the Fund increased its exposure to defensive
industries, such as utilities and telecommunications, to help protect
shareholder capital. This strategy proved effective when stocks sold off in late
July and August due to the global liquidity crisis ignited by Russia's financial
problems. The Fund used the market pullback to add to existing holdings selling
at favorable prices and establish new positions in attractively priced companies
with above average earnings prospects.
Where the Fund May Be Headed
The economic backdrop is still positive for European equities. Corporations
continue to restructure operations and improve profitability. Inflation remains
under control on the continent, and interest rates are still declining in many
countries. Additionally, despite the generally good performance recorded by
European stocks over the past few years, valuations, on balance, remain
relatively attractive.
The launch of the European Monetary Union on January 1, 1999 should also be a
positive for stocks on the continent. The EMU will create a market comparable
in size to that of the U.S. as well as a single currency. However, given the
uncertainty of the global economy and, therefore, the earnings prospects of
many companies, stock selection will be key in achieving superior investment
results in the year ahead.
5
<PAGE>
Chase Vista European Fund
as of October 31, 1998
(unaudited)
How Much of the Fund Was Invested
[PIE CHART]
Cash/Other 12.3%
Investments 87.7%
What the Fund Invested In
Percentage of Total Portfolio Investments
[PIE CHART]
Finland 3.3%
France 14.9%
Germany 18.8%
Greece 1.5%
Ireland 3.7%
Italy 7.1%
Netherlands 6.7%
Portugal 2.9%
Spain 4.4%
Sweden 1.3%
Switzerland 6.9%
United Kingdom 27.6%
Other 0.9%
Top Ten Equity Holdings
1. Olivetti Group SPA (3.6%) Manufactures office and computer equipment, office
furniture and furnishings, component parts, specialized information systems
and telecommunications services.
2. MobilCom AG (3.5%) Provides mobile telephone service by buying air time from
licensed providers and reselling it to consumers through its own sales and
service organization.
3. Total SA, B Shares (3.1%) Produces, refines, transports and markets oil and
natural gas. The Company also operates a chemical division which produces
rubber, paint, ink, adhesives and resins.
4. Roche Holding AG (2.9%) Develops pharmaceuticals and drugs, fine chemicals
and vitamins, fragrances and flavors, diagnostic equipment and liquid
crystals.
5. Novartis AG (Registered) (2.8%) Manufactures healthcare products for use in
a broad range of medical fields, as well as nutritional and agricultural
products.
6. Banco Comercial Portugues, SA (2.6%) A commercial bank offering money
management, brokerage and insurance to clients.
7. Vodafone Group PLC (2.5%) Provides telecommunications services which include
cellular radio, wide area paging, distribution, packet radio and value added
network services.
8. Jarvis PLC (2.5%) A construction company operating throughout the United
Kingdom. The Company's divisions comprise building, civil engineering,
specialist joinery and shopfitting.
9. Nokia Oyj, A Shares (2.5%) Develops and manufactures mobile phones, networks
and systems for cellular and fixed networks. The Company also develops and
supplies access networks and other telecom related products.
10. British Aerospace (2.4%) The Company produces military aircraft, satellites,
guidance weapons and other systems.
Top 10 equity holdings comprised 28.4% of Fund's market value of investments.
Fund holdings are subject to change at any time.
6
<PAGE>
Chase Vista European Fund
as of October 31, 1998
(unaudited)
Average Annual Total Returns+
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the stock markets, tends to
be more volatile than the long-term trend.
<TABLE>
<CAPTION>
Since
Inception
1 Year (11/2/95)
------ ---------
<S> <C> <C>
Class A Shares
Without Sales Charge 18.71% 22.49%
With Sales Charge* 11.89% 20.10%
Class B Shares
Without CDSC 17.89% 21.64%
With CDSC** 12.89% 20.96%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
* Sales charge on Class A Shares is 5.75%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period
and a 4% CDSC for the period since inception.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting
and taxations policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the
United States and other nations. The fund may be also subject to the additional
risk of non-diversified "regional" fund investing.
+ The Fund commenced operations on 11/2/95. Class B Shares were introduced on
11/3/95. Investors should note that information presented for Class B Shares
prior to their introduction is based upon historical expenses of the
predecessor Class A Shares, which are lower than the actual expenses of the B
Shares.
7
<PAGE>
Chase Vista European Fund
as of October 31, 1998
(unaudited)
Life of Fund Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista European Fund compared to its key
benchmarks. This is where you see the Fund's long-term trend. This chart is for
illustrative purposes only.
[LINE CHART]
<TABLE>
<CAPTION>
Lipper European Chase Vista MSCI Europe
Funds Average European Fund Index
--------------- ------------- -----------
<S> <C> <C> <C>
1995 9,425 10,000 10,000
1996 11,383 11,796 11,792
1997 14,592 14,910 14,221
1998 17,323 17,591 16,223
</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 European Fund, the Lipper European Funds Average and the
MSCI Europe Index from November 2, 1995 to October 31, 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 Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
The Lipper European Funds Average represents the average performance of a
universe of 91 actively managed mutual funds that invest in European stocks.
Lipper is an independent mutual fund performance monitor whose results are
based on total return and do not reflect a sales charge.
The MSCI Europe Index is a replica (or model) of the performance of the
European markets. The index is unmanaged and reflects the reinvestment of
dividends. An individual cannot invest directly in the index.
International investing involves a greater degree of risk and increased
volatility. Changes in currency and exchange rates and differences in
accounting and taxation policies outside the U.S. can raise or lower returns.
Also, some overseas markets may not be as politically and economically stable
as the United States and other nations. The Fund may also be subject to the
additional risk of non-diversified "Regional" fund investing.
8
<PAGE>
Chase Vista European Fund
Portfolio of Investments October 31, 1998
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -------------------------------------------------------------
Long Term Investments -- 87.6%
- -------------------------------------------------------------
<S> <C> <C>
Common Stock -- 86.9%
---------------------
Austria -- 0.3%
Oil & Gas -- 0.3%
1,671 Schoeller-Bleckmann Oilfield
Equipment AG $ 110,424
---------
Finland -- 3.1%
Food/Beverage Products -- 0.8%
25,240 Raisio Group PLC 340,647
Telecommunications -- 2.3%
11,017 Nokia Oyj, A Shares 1,002,560
---------
Total Finland 1,343,207
---------
France -- 13.8%
Automotive -- 1.2%
2,731 Equipments et Composants pour
l'Industries Automobile 518,494
Appliances & Household Durables -- 0.3%
8,880 Moulinex* 150,533
Banking -- 1.9%
11,548 Credit Commercial de France 810,893
Computer Software/Services -- 2.0%
5,784 Cap Gemini Sogeti SA 869,129
Diversified -- 1.9%
20,865 Lagardere SA 839,575
Entertainment/Leisure -- 0.3%
5,831 Parc Asterix, SA 146,801
Insurance -- 1.1%
14,210 CNP Assurances 483,054
Oil & Gas -- 4.7%
6,560 Elf Aquitaine SA 759,074
10,960 Total SA, B Shares 1,264,264
---------
2,023,338
---------
Retailing -- 0.4%
920 Castorama Dubois Investisse 164,071
---------
Total France 6,005,888
---------
Germany -- 11.8%
Automotive -- 0.6%
11,405 Kolbenschmidt Pierburg AG 239,645
</TABLE>
See notes to financial statements.
9
<PAGE>
Chase Vista European Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -------------------------------------------------------------
Long Term Investments -- (continued)
- -------------------------------------------------------------------
<S> <C> <C>
Banking -- 2.2%
24,765 BHF-Bank AG $ 953,261
Capital Goods -- 0.7%
3,221 Mannesmann AG 317,009
Food/Beverage Products -- 1.4%
13,789 Kamps AG* 626,100
Insurance -- 3.1%
2,138 Allianz AG Holding 733,245
1,288 Muenchener Rueckversicherungs-
Gesellschaft AG* 589,493
71 Muenchener Rueckversicherungs-
Gesellschaft AG, New Shares* 32,324
---------
1,355,062
---------
Pharmaceuticals -- 0.5%
2,900 Gehe AG 218,002
Telecommunications -- 3.3%
4,862 MobilCom AG 1,412,060
---------
Total Germany 5,121,139
---------
Greece -- 1.4%
Telecommunications -- 1.4%
23,532 STET Hellas Telecommunications SA,
ADR* 617,715
---------
Ireland -- 3.4%
Banking -- 1.1%
26,825 Bank of Ireland 493,264
Computer Software/Services -- 0.4%
6,708 IONA Technologies PLC, ADR* 177,762
Real Estate -- 0.9%
73,443 Green Property PLC 375,135
Telecommunications -- 1.0%
14,413 Esat Telecom Group PLC, ADR* 435,993
---------
Total Ireland 1,482,154
---------
Italy -- 6.6%
Banking -- 0.7%
20,787 Istituto Bancario San Paolo di Torino 305,803
Printing & Publishing -- 2.5%
120,755 Poligrafici Editoriale SPA 256,518
681,096 Seat Pagine Gialle SPA* 556,285
</TABLE>
See notes to financial statements.
10
<PAGE>
Chase Vista European Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ----------------------------------------------------------------
Long Term Investments -- (continued)
- ----------------------------------------------------------------
<S> <C> <C>
450,000 Seat Pagine Gialle SPA-RNC $ 281,559
---------
1,094,362
---------
Telecommunications -- 3.4%
593,000 Olivetti Group SPA* 1,449,740
---------
Total Italy 2,849,905
---------
Netherlands -- 6.3%
Business Services -- 1.1%
22,474 Koninklijke Ahrend Groep NV 456,055
Computer Software/Services -- 1.4%
18,700 Ordina Beheer NV 486,604
24,000 Tas Groep NV* 109,227
---------
595,831
---------
Food/Beverage Products -- 0.9%
15,570 Laurus NV 391,821
Printing & Publishing -- 1.6%
19,480 Verenigde Nederlandse
Uitgeversbedrijvan Verenigd Bezit 673,782
Retailing -- 0.5%
8,528 Vendex NV 216,890
Telecommunications -- 0.8%
8,240 Equant NV, New York (Registered)* 360,500
---------
Total Netherlands 2,694,879
---------
Portugal -- 2.7%
Banking -- 2.4%
33,172 Banco Comercial Portugues, SA 1,039,361
Construction -- 0.3%
3,060 Brisa-Auto Estradas de Portugal, SA 148,349
---------
Total Portugal 1,187,710
---------
Spain -- 4.2%
Construction -- 1.2%
15,960 ACS, Actividades de Construccion y
Servicios, SA 508,378
Consumer Products/Services -- 0.3%
9,660 Corp. Financiera Reunida, SA* 115,688
Telecommunications -- 1.7%
16,146 Telephonica de Espana 727,690
</TABLE>
See notes to financial statements.
11
<PAGE>
Chase Vista European Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------------
Long Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
Utilities -- 1.0%
16,400 Endesa, SA $ 412,569
----------
Total Spain 1,764,325
----------
Sweden -- 1.2%
Computer Software/Services -- 0.1%
11,376 Industri-Matematik International
Corp.* 52,614
Insurance -- 1.1%
36,036 Skandia Forsakrings AB 458,698
----------
Total Sweden 511,312
----------
Switzerland -- 6.4%
Pharmaceuticals -- 5.3%
631 Novartis AG (Registered) 1,137,027
99 Roche Holding AG 1,155,164
----------
2,292,191
----------
Photographic Equipment -- 1.1%
1,600 Fotolabo SA 492,728
----------
Total Switzerland 2,784,919
----------
United Kingdom -- 25.7%
Aerospace -- 2.2%
130,115 British Aerospace PLC 968,581
Business Services -- 0.2%
20,639 Delphi Group PLC 93,323
Construction -- 3.8%
72,423 Berkeley Group PLC 618,563
95,040 Jarvis PLC 1,002,730
----------
1,621,293
----------
Electronics/Electrical Equipment -- 2.2%
80,390 General Electric Company PLC 642,854
300,000 Verity Group PLC* 286,374
----------
929,228
----------
Entertainment/Leisure -- 0.9%
25,272 Granada Group PLC 384,928
Financial Services -- 1.4%
52,736 Legal & General Group PLC 623,076
Hotels/Other Lodging -- 0.4%
106,455 Jarvis Hotels PLC 180,063
</TABLE>
See notes to financial statements.
12
<PAGE>
Chase Vista European Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------
Long Term Investments -- (continued)
- ------------------------------------------------------------
<S> <C> <C>
Oil & Gas -- 4.6%
57,609 British Petroleum Co., PLC $ 850,452
158,631 British-Borneo Petroleum
Syndicate PLC 589,764
88,700 Shell Transport & Trading PLC 538,850
----------
1,979,066
----------
Pharmaceuticals -- 3.2%
24,198 Glaxo Wellcome PLC 752,133
51,800 Smithkline Beecham PLC 648,018
----------
1,400,151
----------
Real Estate -- 1.0%
258,965 TBI PLC 412,004
Telecommunications -- 4.5%
125,716 Securicor PLC 930,572
75,680 Vodafone Group PLC 1,010,762
----------
1,941,334
----------
Utilities -- 1.3%
291,217 Centrica PLC* 565,733
----------
Total United Kingdom 11,098,780
----------
Total Common Stock 37,572,357
(Cost $37,264,033) ----------
Warrants -- 0.0%
----------------
Germany -- 0.0%
Insurance -- 0.0%
71 Muenchener Rueckversicherungs-
Gesellschaft AG, Expires 06/03/02 3,087
(Cost $0) ----------
</TABLE>
See notes to financial statements.
13
<PAGE>
Chase Vista European Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount
(Local
Currency) Issuer Value (USD)
- ----------------------------------------------------------------
Long-Term Investments -- (continued)
- ----------------------------------------------------------------
<S> <C> <C>
Convertible Corporate Notes & Bonds -- 0.7%
-------------------------------------------
Germany -- 0.0%
Automotive -- 0.0%
$ 4,800 Daimler-Benz AG, 5.75% due
06/14/02 $ 3,730
-----------
Poland -- 0.7%
Electronics/Electrical Equipment --
460,000 Elektrim Spolka Akcyjna SA, 2.00%
due 05/30/04, # 285,108
-----------
Total Convertible Corporate
Notes & Bonds 288,838
(Cost $332,551)
- ----------------------------------------------------------------
Total Long-Term Investments 37,864,282
(Cost $37,596,584)
================================================================
Short-Term Investments -- 5.6%
- ----------------------------------------------------------------
Time Deposit -- 5.6%
--------------------
4,003,559 Deutsche Bank Financial 3.36% due
11/02/98 2,417,350
(Cost $2,417,350)
================================================================
Total Short-Term Investments 2,417,350
(Cost $2,417,350)
- ----------------------------------------------------------------
Total Investments -- 93.2% $40,281,632
(Cost $40,013,934)
- ----------------------------------------------------------------
</TABLE>
See notes to financial statements.
14
<PAGE>
Chase Vista Southeast Asian Fund
as of October 31, 1998
(unaudited)
Fund Facts
<TABLE>
<S> <C> <C>
Objective Capital growth
Primary investments Stocks of companies in the
Pacific Rim, except Japan
Suggested investment time frame Long-Term
Market benchmark MSCI Pacific Ex-Japan Index
Lipper Funds category Lipper Pacific Ex-Japan Funds
Average
Class A Class B
------- -------
Inception date 11/2/95 11/3/95
Newspaper symbol Not listed Not listed
Net assets $3.1 Million $.81 Million
</TABLE>
Investment Style/Market Cap
- -------------------------
| | | |
| | | | Large
| | | |
- -------------------------
| | | |
| X | | | Med.
| | | |
- -------------------------
| | | |
| | | | Small
| | | |
- -------------------------
Value Blend Growth
15
<PAGE>
Chase Vista Southeast Asian Fund
as of October 31, 1998
(unaudited)
How the Fund Performed
Chase Vista Southeast Asian Fund, which seeks long-term growth of capital by
investing in stocks of companies located in the Pacific Rim (excluding Japan),
had a total return of -23.85% (class A shares, without sales charges) for the
one-year period ended October 31, 1998.
How the Fund Was Managed
A general decline in stock markets throughout the region had the most
significant effect on the Fund's performance.
Early in the period, the region's economic and currency problems, which
surfaced in the summer of 1997, pushed equity prices lower. While the downturn
made stocks more attractive on a valuation basis, investors, for the most part,
remained on the sidelines through the end of 1997 and into 1998.
Midway through the period, markets in the region showed signs of stabilizing,
as investors began to look more closely at valuations. The markets also
received a boost in June, following the Federal Reserve's decision to intervene
in world currency markets to help stabilize the falling Japanese yen.
The Fed's intervention, however, only had a short-term positive effect on Asian
markets. And when Russia's economic problems surfaced in July, igniting
worldwide concerns of a global liquidity crisis, the southeast Asian markets
retreated again. On a positive note, several markets in the region held up
better than many of the established markets.
As the period came to a close, the economic and currency problems that had
rattled the southeast Asian markets throughout much of the period began to
subside with the Federal Reserve's decision to reduce short-term interest rates
for the second time in less than three weeks on October 15.
Where the Fund May Be Headed
Governments in many countries throughout the region are making progress to
improve economic conditions within their respective countries. However,
fundamental economic problems will continue to be a factor in the performance
of stocks in the months ahead.
Given this backdrop, we will remain cautious, especially in light of the
uncertainty surrounding the global economy. We may consider any significant
downturn as a good buying opportunity due to the current level of valuations in
most markets along the Pacific Rim.
16
<PAGE>
Chase Vista Southeast Asian Fund
as of October 31, 1998
(unaudited)
How Much of the Fund Was Invested
[PIE CHART]
Cash/Other 39.1%
Investments 60.9%
What the Fund Invested In
Percentage of Total Portfolio Investments
[PIE CHART]
Australia 24.1%
China 2.3%
Hong Kong 28.1%
India 8.5%
Korea 7.7%
Philippines 4.7%
Singapore 4.3%
Thailand 20.1%
Other 0.2%
Top Ten Equity Holdings
1. HSBC Holding PLC (4.9%) The Company is an international banking and
financial services organization which provides retail and corporate banking,
trade, securities, capital markets and treasury services.
2. Bangkok Bank Public Company. LTD (Foreign) (Registered) (4.6%) Provides a
wide range of financial services including retail, commercial, and corporate
banking.
3. Electricity Generating Public Co., LTD (Foreign) (Registered) (4.6%) The
Company provides electric service. It was formerly a state enterprise with
48% of shares held by the Electric Generating Authority of Thailand.
4. Cheung Kong Holdings, LTD (4.5%) The Company is involved in property
development and investment, infrastructure and related businesses, real
estate management and investment in securities.
5. Futuris Corp. LTD (4.5%) Manufactures air conditioning and heating equipment
for automotive manufacturers. The Company also produces brakes and related
products for the automotive and railway industries.
6. Hutchinson Whampoa (4.1%) An investment holding company. It has diversified
operations in property investment and development, ports and related
services, retail and manufacturing.
7. Southcorp LTD (3.9%) Operates vineyards and exports wine. Produces food and
beverage cans, milk/juice containers and manufactures dishwashers, washing
machines and water heaters.
8. Manila Electric Co. (3.7%) Distributes electricity for heat and power. The
Company purchases electricity from National Power Corporation and
distributes it throughout Latin America.
9. CLP Holdings LTD (3.7%) The Company exports electric power to Guandong
Province in the People's Republic of China. Its subsidiaries are involved in
property investment and development.
10. Publishing & Broadcasting LTD (3.6%) The Company operates a television
broadcasting network and promotes various sporting events and distributes
films and television programs.
Top 10 equity holdings comprised 42.1% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
17
<PAGE>
Chase Vista Southeast Asian Fund
as of October 31, 1998
(unaudited)
Average Annual Total Returns+
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the stock markets, tends to
be more volatile than the long-term trend.
<TABLE>
<CAPTION>
Since
Inception
1 Year (11/2/95)
------ ---------
<S> <C> <C>
Class A Shares
Without Sales Charge -23.85% -13.45%
With Sales Charge* -28.23% -15.14%
Class B Shares
Without CDSC -24.45% -14.12%
With CDSC** -28.21% -14.94%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
The Fund is currently waiving certain fees. The voluntary waiver may be
modified or terminated at any time, which would reduce performance.
* Sales charge on Class A Shares is 5.75%.
** Assumes a 5% CDSC (contingent deferred sales charge) for the one year period
and a 4% CDSC for the period since inception.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting
and taxations policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the
United States and other nations. The fund may be also subject to the additional
risk of non-diversified "regional" fund investing.
+ The Fund commenced operations on 11/2/95. Class B Shares were introduced on
11/3/95. Investors should note that information presented for Class B Shares
prior to their introduction is based upon historical expenses of the
predecessor Class A Shares, which are lower than the actual expenses of the B
Shares.
18
<PAGE>
Chase Vista Southeast Asian Fund
as of October 31, 1998
(unaudited)
Life of Fund Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista Southeast Asian Fund compared to its key
benchmarks. This is where you see the Fund's long-term trend. This chart is for
illustrative purposes only.
[LINE CHART]
<TABLE>
<CAPTION>
Lipper Pacific MSCI Pacific Chase Vista
Ex-Japan Funds Avg. Ex-Japan Index Southeast Asian Fund
------------------- -------------- --------------------
<S> <C> <C> <C>
1995 9,425 10,000 10,000
1996 11,282 11,011 10,500
1997 8,025 8,180 7,993
1998 6,111 8,528 6,059
</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 Southeast Asian Fund, the Lipper Pacific Ex-Japan Funds
Average and the MSCI Pacific Ex-Japan Index from November 2, 1995 to October
31, 1998. The performance of the Fund assumes 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 Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
The Lipper Pacific Ex-Japan Funds Average represents the average performance of
a universe of 84 actively managed mutual funds that invest in Asian stock
markets with exception of Japan. Lipper is an independent mutual fund
performance monitor whose results are based on total return and do not reflect
a sales charge.
The MSCI Pacific Ex-Japan Index is a replica (or model) of the performance of
the Pacific regional equity markets, excluding Japan. The index is unmanaged
and reflects the reinvestment of dividends. An individual cannot invest
directly in the index.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting
and taxation policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the
United States and other nations. The Fund may also be subject to the additional
risk of non-diversified "Regional" fund investing.
19
<PAGE>
Chase Vista Southeast Asian Fund
Portfolio of Investments October 31, 1998
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- --------------------------------------------------------------
Long Term Investments -- 62.6%
- --------------------------------------------------------------
<S> <C> <C>
Common Stock -- 62.6%
---------------------
Australia -- 15.0%
Diversified -- 7.1%
107,270 Futuris Corp. LTD $ 109,470
49,600 Lang Corp., LTD 72,532
30,000 Southcorp LTD 95,114
----------
277,116
----------
Financial Services -- 2.0%
672,000 FXF Trust* 79,451
Food/Beverage Products -- 2.1%
33,000 Foster's Brewing Group, LTD 80,701
Metals/Mining -- 1.6%
4,300 Soul Pattinson & Company LTD
(Washington H.) 64,218
Multi-Media -- 2.2%
22,000 Publishing & Broadcasting LTD 86,930
----------
Total Australia 588,416
----------
China -- 1.5%
Utilities -- 1.5%
162,000 Huaneng Power International, Inc.* 56,469
----------
Hong Kong -- 17.5%
Banking -- 3.1%
5,200 HSBC Holdings PLC 119,161
Diversified -- 3.6%
84,000 Cosco Pacific LTD 41,209
14,000 Hutchison Whampoa 100,312
----------
141,521
----------
Manufacturing -- 1.9%
32,000 Shanghai Industrial Holdings LTD 73,950
Real Estate -- 4.9%
16,000 Cheung Kong Holdings, LTD 109,478
62,000 China Resources Enterprises LTD 82,845
----------
192,323
----------
Telecommunications -- 1.7%
34,000 Hong Kong Telecommunications LTD 68,037
</TABLE>
See notes to financial statements.
20
<PAGE>
Chase Vista Southeast Asian Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------------
Long Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
Utilities -- 2.3%
16,000 CLP Holdings LTD $ 89,855
----------
Total Hong Kong 684,847
----------
India -- 5.4%
Chemicals -- 1.3%
9,700 Reliance Industries LTD, GDR* 49,179
Consumer Products/Services -- 0.7%
1,300 I.T.C. Limited-Sponsored, GDR 25,188
Machinery & Engineering Equipment -- 0.9%
5,000 Larsen & Toubro LTD, GDR 34,375
Telecommunications -- 1.1%
4,200 Mahangar Telephone Nigam LTD,
GDR 43,050
Utilities -- 1.4%
4,550 BSES LTD, GDR 55,965
----------
Total India 207,757
----------
Philippines -- 3.0%
Telecommunications -- 0.6%
1,000 Philippine Long Distance Telephone 23,916
Utilities -- 2.4%
31,000 Manila Electric Co. 91,428
----------
Total Philippines 115,344
----------
Singapore -- 2.7%
Engineering Services -- 1.9%
74,000 Singapore Technologies Engineering
LTD 72,717
Telecommunications -- 0.8%
19,000 Singapore Telecommunications, LTD
(Foreign) 32,790
----------
Total Singapore 105,507
----------
South Korea -- 4.9%
Electronics/Electrical Equipment -- 0.1%
96 Samsung Electronics 3,929
----------
Health Care/Health Care Services -- 2.7%
6,623 Medison Company* 73,284
2,000 Suheung Capsule 31,225
----------
104,509
----------
</TABLE>
See notes to financial statements.
21
<PAGE>
Chase Vista Southeast Asian Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------------------
Long Term Investments -- (continued)
- ------------------------------------------------------------------------
<S> <C> <C>
Utilities -- 2.1%
4,700 Korea Electric Power Corp. $ 83,708
---------
Total South Korea 192,146
---------
Thailand -- 12.6%
Banking -- 5.0%
74,000 Bangkok Bank Public Company, LTD
(Foreign) (Registered) 112,781
64,000 Thai Farmers Bank Public Company
LTD (Foreign)* 80,993
---------
193,774
---------
Oil & Gas -- 2.2%
9,000 PTT Exploration and Production
Public Co., LTD (Foreign)* 86,708
Printing & Publishing -- 0.1%
3,200 Siam Sport Syndicate Public Co., LTD
(Foreign)* 2,297
Shipping/Transportation -- 1.4%
68,000 Bangkok Expressway Public Company
LTD* 53,669
Utilities -- 3.9%
56,000 Cogeneration Public Co., LTD
(Foreign)* 41,912
42,100 Electricity Generating Public Co., LTD
(Foreign) (Registered)* 111,140
---------
153,052
---------
Total Thailand 489,500
---------
Total Common Stock 2,439,986
(Cost $2,301,280) ---------
</TABLE>
See notes to financial statements.
22
<PAGE>
Chase Vista Southeast Asian Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------
Long Term Investments -- (continued)
- ------------------------------------------------------------
<S> <C> <C>
Warrants -- 0.0%
----------------
Hong Kong -- 0.0%
Diversified -- 0.0%
44,600 Guangdong Investment, LTD, Expires
07/30/99 $ 535
1,800 Wharf Holdings, Expires 12/31/99 212
----------
Total Warrants 747
(Cost $0) ----------
- ------------------------------------------------------------
Total Investments -- 62.6% $2,440,733
(Cost $2,301,280)
- ------------------------------------------------------------
</TABLE>
Long Futures Outstanding
<TABLE>
<CAPTION>
Number Original Notional
of Expiration Notional Value at Unrealized
Contracts Description Date Value 10/31/98 Appreciation
- ----------- ----------------- ------------ ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
10 Hang Seng Stock November
Index Future 1998 $639,940 $659,711 $19,771
13 SMX Taiwan November
Index Future 1998 361,505 365,560 4,055
-------
$23,826
=======
</TABLE>
See notes to financial statements.
23
<PAGE>
Chase Vista Japan Fund
as of October 31, 1998
(unaudited)
Fund Facts
<TABLE>
<S> <C> <C>
Objective Capital growth
Primary investments Stocks of companies located in
Japan
Suggested investment time frame Long-Term
Market benchmark Tokyo SE (Topix) 1st Section
Lipper Funds category Japan Equity Funds Average
Class A Class B
------- -------
Inception date 11/2/95 11/3/95
Newspaper symbol Not listed Not listed
Net assets $1.7 Million $.39 Million
</TABLE>
Investment Style/Market Cap
- -------------------------
| | | |
| | | | Large
| | | |
- -------------------------
| | | |
| X | | | Med.
| | | |
- -------------------------
| | | |
| | | | Small
| | | |
- -------------------------
Value Blend Growth
24
<PAGE>
Chase Vista Japan Fund
as of October 31, 1998
(unaudited)
How the Fund Performed
Chase Vista Japan Fund, which seeks long-term growth of capital by investing in
the stocks of companies located in Japan, provided shareholders with a total
return of -28.98% (Class A shares, without sales charges) for the one-year
period ended October 31, 1998.
How the Fund Was Managed
Generally weak economic conditions and continuing problems within Japan's
troubled banking system were largely responsible for the Fund's investment
results.
Early in the period, Japanese equities came under pressure due to several
factors. These included a negative spillover effect of the Asian economic and
currency crisis on the Japanese economy and the failure of Yamichi Securities,
which underscored serious problems within Japan's financial sector.
In January, Japanese stocks rallied, thanks to the government's plan to
revitalize the ailing economy. But that rally was short-lived. When the reform
package was unveiled, investors considered it insufficient in solving the
country's fundamental economic woes.
Despite disappointing economic data midway through the period, Japanese stocks
showed strength as investors priced in a possible attempt by government to make
a serious attempt at repairing Japan's economy prior to the July election.
In the final two weeks of the period, the Japanese stock market rallied,
bolstered in part by the general upturn in equity prices around the globe. The
rally was ignited by the Federal Reserve's decision to lower short-term
interest rates for the second time in less than three weeks.
Where the Fund May Be Headed
Our outlook for the Japanese stock market remains cautious, but we are
beginning to see signs that a rebound may soon occur. Although the government
has, in the past, failed to introduce a meaningful economic reform package, it
is facing increasing pressure from the global community to rehabilitate its
fiscal problems. Given this backdrop, we will continue to observe the
government's handling of the country's economic problems and will consider
ramping up our buying program once we believe its efforts could have a positive
impact on equity prices.
25
<PAGE>
Chase Vista Japan Fund
as of October 31, 1998
(unaudited)
How Much of the Fund Was Invested
[PIE CHART]
Cash/Other 20.4%
Investments 79.6%
What the Fund Invested In
Percentage of Total Portfolio Investments
[PIE CHART]
Capital Goods 13.0%
Consumer Cyclicals 23.2%
Consumer Staples 10.4%
Energy 5.0%
Financial 1.1%
Health Care 11.7%
Technology 26.8%
Transportation 1.6%
Utilities 3.9%
Top Ten Equity Holdings
1. Fuji Photo Film (6.0%) Manufactures film for general, medical, printing,
office, photographic paper, audio cassettes, video tapes, floppy discs,
cameras, and lenses.
2. KAO Corp. (5.5%) Manufacturer of household and chemical products. It's
products include cosmetics, laundry and cleaning products, fatty chemicals
and edible oils.
3. Murata Manufacturing Co., LTD (5.5%) Manufactures and sells ceramic applied
electronic components. The Company's products include capacitors,
thermistors, resisters, noise suppression product resonators.
4. Hosiden Corp. (5.3%) Manufactures consumer electronic parts, such as
electronic wiring devices, auto components and liquid crystal displays.
5. Mabuchi Motor (5.3%) Manufactures primarily small DC motors and supplies to
diverse users, from home electric appliance and audio equipment makers to
precision machinery makers.
6. Futaba Corp. (5.0%) Produces and markets vacuum fluorescent flat panel
displays used in automotive and consumer products.
7. Nintendo Company LTD (5.0%) Manufactures and markets video games. The
Company has a video game library of over 500 games.
8. Osaka Gas Co. (5.0%) The Company's products include gas, gas appliances and
gas supply work. The Company is also advancing into air separation,
liquified carbonic gas and frozen food complexes.
9. Chugai Pharmaceutical Co., LTD (4.9%) Produces medicines for human use. The
Company's main products are blood & body fluid agents.
10. Fuji Machine Manufacturing Co., LTD (4.8%) Manufactures automated assembly
machines and labor saving machines. It also produces parts for electronics
products including chips.
Top 10 equity holdings comprised 52.3% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
26
<PAGE>
Chase Vista Japan Fund
as of October 31, 1998
(unaudited)
Average Annual Total Returns+
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the stock markets, tends to
be more volatile than the long-term trend.
<TABLE>
<CAPTION>
Since
Inception
1 Year (11/2/95)
------ ---------
<S> <C> <C>
Class A Shares
Without Sales Charge -28.98% -11.53%
With Sales Charge* -33.06% -13.26%
Class B Shares
Without CDSC -29.53% -12.20%
With CDSC** -32.89% -13.03%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
* Sales charge on Class A Shares is 5.75%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period,
and a 4% CDSC for the period since inception.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting
and taxations policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the
United States and other nations. The fund may be also subject to the additional
risk of non-diversified "regional" fund investing.
+ The Fund commenced operations on 11/2/95. Class B Shares were introduced on
11/3/95. Investors should note that information presented for Class B Shares
prior to their introduction is based upon historical expenses of the
predecessor Class A Shares, which are lower than the actual expenses of the B
Shares.
27
<PAGE>
Chase Vista Japan Fund
as of October 31, 1998
(unaudited)
Life of Fund Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista Japan Fund compared to its key
benchmarks. This is where you see the Fund's long-term trend. This chart is for
illustrative purposes only.
[LINE CHART]
<TABLE>
<CAPTION>
Chase Vista Tokyo SE (Toppix) Lipper Japan
Japan Fund 1st Section Index Equity Funds Average
----------- ----------------- --------------------
<S> <C> <C> <C>
1995 9,425 10,000 10,000
1996 8,878 9,877 9,910
1997 9,188 7,912 8,746
1998 6,527 6,859 7,546
</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 Japan Fund, the Lipper Japan Equity Funds Average and the
Tokyo SE (Topix) 1st Section from November 2, 1995 to October 31, 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 Fund is currently waiving fees. This voluntary waiver may be modified or
terminated at any time, which would reduce performance.
The Lipper Japan Equity Funds Average represents the average performance of a
universe of 33 actively managed mutual funds that invest primarily in Japanese
stocks. Lipper is an independent mutual fund performance monitor whose results
are based on total return and do not reflect a sales charge.
The Tokyo SE (Topix) 1st Section also known as the Tokyo Price Index, is an
unmanaged capitalization-weighted index of all the companies listed on the
First Section of the Tokyo Stock Exchange. The index is unmanaged and reflects
reinvestment of dividends. An individual cannot invest directly in the index.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting
and taxation policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the
Unites States and other nations. The Fund may be also subject to the additional
risk of non-diversified "regional" fund investing.
28
<PAGE>
Chase Vista Japan Fund
Portfolio of Investments October 31, 1998
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -------------------------------------------------------------------
Long Term Investments -- 85.4%
- -------------------------------------------------------------------
<S> <C> <C>
Common Stock -- 85.4%
---------------------
Chemicals -- 2.8%
13,000 Toray Industries, Inc. $ 60,467
----------
Consumer Products/Services -- 13.6%
3 Japan Tobacco, Inc. 25,153
5,000 KAO Corp. 101,264
1,100 Nintendo Company LTD 93,078
1,000 Secom Co., LTD 74,232
----------
293,727
----------
Electronics/Electrical Equipment -- 17.1%
6,000 Hosiden Corp. 98,501
1,500 Mabuchi Motor 97,832
4,000 Mitsumi Electric Company LTD 71,400
3,000 Murata Manufacturing Co., LTD 101,179
----------
368,912
----------
Financial Services -- 0.9%
7,000 Nikko Securities Co. LTD 21,145
----------
Food/Beverage Products -- 9.0%
8,000 Ajinomoto Co., Inc. 75,657
4,000 Asahi Breweries 57,154
3,000 Nissin Food Products 59,600
----------
192,411
----------
Health Care/Health Care Services -- 3.0%
2,000 Takeda Chemical Industries 65,050
----------
Machinery & Engineering Equipment -- 2.7%
10,000 Tokyo Kikai Seisakusho 59,214
----------
Manufacturing -- 10.0%
8,000 Copal Co., LTD* 32,817
3,000 Fuji Machine Manufacturing Co., LTD 88,306
3,000 Futaba Corp. 93,198
----------
214,321
----------
Oil & Gas -- 4.3%
29,000 Osaka Gas Co. 93,078
----------
Pharmaceuticals -- 6.9%
10,000 Chugai Pharmaceutical Co., LTD 90,966
5,000 Fujisawa Pharmaceutical Co. 58,999
----------
149,965
----------
</TABLE>
See notes to financial statements.
29
<PAGE>
Chase Vista Japan Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ---------------------------------------------------------
Long Term Investments -- (continued)
- ---------------------------------------------------------
<S> <C> <C>
Photographic Equipment -- 5.1%
3,000 Fuji Photo Film $ 109,932
----------
Real Estate -- 2.7%
4,000 Hankyu Realty Co., LTD 16,477
2,000 Tachihi Enterprise Co. LTD 42,308
----------
58,785
----------
Retailing -- 2.6%
1,500 Matsumotokiyoshi 56,639
----------
Shipping/Transportation -- 1.4%
5 East Japan Railway Company 29,650
----------
Telecommunications -- 3.3%
20 NTT Mobile Communications
Network, Inc.* 72,258
- ---------------------------------------------------------
Total Investments -- 85.4% $1,845,554
(Cost $1,764,287)
- ---------------------------------------------------------
</TABLE>
Short Futures Outstanding
<TABLE>
<CAPTION>
Number Original Notional
of Expiration Notional Value at Unrealized
Contracts Description Date Value 10/31/98 Appreciation
- ----------- --------------- ------------ ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
4 Nikkei 225 December
Index Future 1998 $236,727 $231,964 $4,763
======
</TABLE>
See notes to financial statements.
30
<PAGE>
Chase Vista Latin American Equity Fund
as of October 31, 1998
(unaudited)
Fund Facts
<TABLE>
<S> <C> <C>
Objective Capital growth
Primary investments Common stocks of established
companies in Latin America
Suggested investment time frame Long-Term
Market benchmark MSCI EMF Latin America
Lipper Funds category Latin America Funds Average
Class A Class B
------- -------
Inception date 12/1/97 3/24/98
Newspaper symbol Not listed Not listed
Net assets $6.3 Million $.04 Million
</TABLE>
Investment Style/Market Cap
- -------------------------
| | | |
| | | X | Large
| | | |
- -------------------------
| | | |
| | | | Med.
| | | |
- -------------------------
| | | |
| | | | Small
| | | |
- -------------------------
Value Blend Growth
31
<PAGE>
Chase Vista Latin American Equity Fund
as of October 31, 1998
(unaudited)
How the Fund Performed
Chase Vista Latin American Equity Fund, which seeks to provide capital growth
by investing in common stocks in Latin America, had a cumulative total return
of -43.34% (Class A shares, without sales charges) since its inception date
(December 1, 1997) through October 31, 1998.
How the Fund Was Managed
The Fund's performance was significantly affected by the general downturn in
equity prices throughout the region, which was ignited by the economic problems
in southeast Asia and the Russian financial crisis.
Early in the period, the Fund enjoyed good performance from Brazil, thanks to
the country's improving economy. However, sharp market pullbacks in Mexico and
Venezuela weighed heavily on the Fund's investment results. The financial
crisis in southeast Asia also had a spillover effect on Latin American markets
and, therefore, the Fund.
During the first three months of 1998, the Fund benefited from its exposure to
mid-cap and large-private sector stocks. In April, though, the economic problems
in southeast Asia again caused reverberations in Latin America. After concerns
over Asia's economic problems subsided, the global liquidity crisis ignited by
Russia's financial troubles caused equity prices to tumble.
Late in the period, we increased our exposure to Argentina, given its
relatively sound economy. Additionally, we increased our exposure to Mexico,
because we believe much of the bad news pertaining to the country's fundamental
economic problems are already priced into the value of its stock market.
Where the Fund May Be Headed
Our long-term forecast for Latin American equities is positive. While economic
uncertainties outside the region may continue to pose a threat to Latin
American markets, many well-managed companies with good earnings prospects are
selling near their historical lows. Additionally, most industries are ramping
up efforts to become more competitive in the global economy.
Given this backdrop, we intend to focus on solid, well-managed companies with a
good business model and solid earnings prospects, regardless of the economic
and market environment.
32
<PAGE>
Chase Vista Latin American Equity Fund
as of October 31, 1998
(unaudited)
How Much of the Fund Was Invested
[PIE CHART]
Cash/Other 2.9%
Investments 97.1%
What the Fund Invested In
Percentage of Total Portfolio Investments
[PIE CHART]
Argentina 10.6%
Brazil 31.4%
Chile 5.2%
Mexico 32.2%
Peru 2.1%
United States 18.5%
Top Ten Equity Holdings
1. Telecommunicacoes Brasileiras SA, Sponsored ADR, Preferred Block (7.0%) The
holding Company for the telecommunications sector in Brazil. The Company
split off its telecommunications businesses as 12 new holding companies.
2. YPF Sociedad, ADR (6.6%) An integrated oil and gas company which explores
for, develops and produces oil and natural gas in South America, the United
States and Indonesia.
3. Sadia Frigobras SA Industria e Comercio (5.3%) The Company breeds, raises
and processes cattle to produce meat products and sells in on the
international market.
4. Companhia de Saneamento Basico do Estado de Sao Paulo (4.0%) Operates in the
captation, treatment and distribution of water. The Company also engineers
and constructs the infrastructure related to its water distribution and
sanitation systems.
5. Telefonos de Mexico SA., Series L, ADR (3.8%) Provides national and
international long-distance and local telephone service to communities
throughout Mexico. The Company also provides voice, data, and video
services.
6. Cifra SA de CV, Series V (3.8%) Owns and operates discount stores that offer
groceries, clothing and general merchandise. The Company also owns and
operates restaurants.
7. Sistema Argos SA (3.8%) Bottles and markets soft drinks, including Coca-Cola
and Sprite. In addition, the Company markets ice and purified water.
8. Sanluis Corporacion SA de CV, Series CPO (3.6%) Manufactures automotive
parts, including suspension systems and brakes for customers worldwide. The
Company also mines gold and silver.
9. Confab Industrial SA, Preference Shares (3.3%) Produces seamed steel tubes
which are used in gas and fuel pipelines. The Company markets its products
to the oil and petrochemical industries.
10. Grupo Televisa SA, Series CPO (3.1%) Produces and broadcasts television
programs and distributes programs in Spanish. It also produces and
broadcasts radio programming, magazines and newspapers.
Top 10 equity holdings comprised 44.30% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
33
<PAGE>
Chase Vista Latin American Equity Fund
as of October 31, 1998
(unaudited)
Cumulative Total Returns+
This table shows the cumulative total returns. This is where you can see the
Fund's short-term performance, which, as with the stock markets, tends to be
more volatile than the long-term trend.
<TABLE>
<CAPTION>
Since
Inception
(12/1/97)
---------
<S> <C>
Class A Shares
Without Sales Charge -43.34%
With Sales Charge* -46.60%
Class B Shares
Without CDSC -43.65%
With CDSC** -46.41%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
* Sales charge on Class A Shares is 5.75%.
** Assumes 5% CDSC (contingent deferred sales charge) for the period since
inception.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting
and taxation policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the
United States and other nations. The Fund may be also subject to the additional
risk of non-diversified "regional" fund investing.
+ The Fund commenced operations on 12/1/97. Class B Shares were introduced on
3/24/98. Investors should note that information presented for Class B Shares
prior to their introduction is based upon historical expenses of the
predecessor Class A Shares, which are lower than the actual expenses of the B
Shares.
34
<PAGE>
Chase Vista Latin American Equity Fund
Portfolio of Investments October 31, 1998
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------------
Long Term Investments -- 83.3%
- ------------------------------------------------------------------
<S> <C> <C>
Common Stock -- 83.3%
---------------------
Argentina -- 10.7%
Oil & Gas -- 6.8%
14,900 YPF Sociedad, ADR $ 431,170
Steel -- 2.2%
100,000 Siderca SA 140,042
Telecommunications -- 1.7%
3,500 Telefonica de Argentina SA, Sponsored
ADR 115,719
----------
Total Argentina 686,931
----------
Brazil -- 32.1%
Appliances & Household Durables -- 2.0%
1,200,000 Brasmotor SA, Preference Shares* 124,741
Food/Beverage Products -- 5.3%
800,000 Sadia Frigobras SA Industria e
Comercio 342,032
Machinery & Engineering Equipment -- 1.7%
7,000,000 Industrias Romi SA, Preference Shares 105,041
Paper/Forest Products -- 1.1%
400,000 Industrias Klabin de Papel e Celulose
SA 70,418
Retailing -- 1.3%
5,000 Companhia Brasileira de Distribuicao
Grupo Pao de Acucar, ADR 80,625
Steel -- 3.4%
261,000 Confab Industrial SA, Preference
Shares 214,424
Telecommunications -- 10.7%
6,000 Telecomunicacoes Brasileiras SA,
Sponsored ADR, Preferred Block* 455,625
998,812 Telecomunicacoes de Sao Paulo SA,
Preference Shares 165,789
1,145,000 Telesp Celular SA, Preference B Shares* 55,672
----------
677,086
----------
Utilities -- 6.6%
1,480 Centrais Geradoras do Sul do Brazil
SA, ADR* 7,568
</TABLE>
See notes to financial statements.
35
<PAGE>
Chase Vista Latin American Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -----------------------------------------------------------------
Long Term Investments -- (continued)
- -----------------------------------------------------------------
<S> <C> <C>
240 Centrais Geradoras do Sul do Brazil
SA, ADR* $ 1,358
3,220,000 Companhia de Saneamento Basico
do Estado de Sao Paulo 256,494
8,000,310 Companhia Energetica de Minas
Gerais 155,597
----------
421,017
----------
Total Brazil 2,035,384
----------
Chile -- 5.3%
Construction Materials -- 1.7%
20,000 Maderas y Sinteticos SA, Sponsored
ADR 110,000
Telecommunications -- 1.8%
5,100 Compania de Telecomunicaciones de
Chile SA, ADR 111,881
Utilities -- 1.8%
5,500 Enersis SA, ADR 114,813
----------
Total Chile 336,694
----------
Mexico -- 33.0%
Automotive -- 4.2%
93,000 Consorcio Grupo Dina SA* 33,074
163,000 Sanluis Corporacion SA de CV,
Series CPO 232,841
----------
265,915
----------
Broadcasting -- 3.2%
15,000 Grupo Televisa SA, Series CPO* 203,009
Construction -- 2.9%
78,710 Cemex SA de CV, Series CPO 184,670
Food/Beverage Products -- 3.9%
250,000 Sistema Argos SA 246,969
Home Building Construction -- 2.7%
96,000 Corporacion GEO, SA de CV,
Series B, ADR* 167,860
Retailing -- 6.7%
185,000 Cifra SA de CV, Series V 248,185
60,000 Organizacion Soriana SA de CV, Class B 177,522
----------
425,707
----------
</TABLE>
See notes to financial statements.
36
<PAGE>
Chase Vista Latin American Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ---------------------------------------------------------------
Long Term Investments -- (continued)
- ---------------------------------------------------------------
<S> <C> <C>
Steel -- 5.5%
18,000 Tubos de Acero de Mexico SA, ADR* $ 153,000
23,000 Tubos de Acero de Mexico SA 194,266
---------
347,266
---------
Telecommunications -- 3.9%
95,000 Telefonos de Mexico SA., Series L,
ADR 249,637
---------
Total Mexico 2,091,033
---------
Peru -- 2.2%
Telecommunications -- 2.2%
10,500 CPT Telefonica del Peru SA, ADR 136,500
---------
Total Common Stock 5,286,542
(Cost $6,551,300)
- ---------------------------------------------------------------
Total Long Term Investments -- 83.3% 5,286,542
(Cost $6,551,300)
- ---------------------------------------------------------------
Principal
Amount
(USD)
- ---------------------------------------------------------------
Short-Term Investments -- 18.9%
- ---------------------------------------------------------------
U. S. Government Agency Obligations -- 18.9%
--------------------------------------------
$ 1,200,000 Federal Home Loan Bank, Discount
Note, 5.40% due 11/02/98 1,200,000
(Cost $1,200,000)
- ---------------------------------------------------------------
Total Investments -- 102.2% $6,486,542
(Cost $7,751,300)
- ---------------------------------------------------------------
</TABLE>
Index
* -- Non income producing security.
# -- Security may only be sold to qualified institutional buyers.
@ -- All or a portion of this security is segregated.
ADR -- American Depositary Receipt.
GDR -- Global Depositary Receipt.
See notes to financial statements.
37
<PAGE>
Chase Vista International Equity Fund
as of October 31, 1998
(unaudited)
Fund Facts
<TABLE>
<S> <C> <C>
Objective Capital growth
Primary investments Common stocks of established
overseas companies
Suggested investment time frame Long-Term
Market benchmark MSCI EAFE Index
Lipper Funds category International Funds Average
Class A Class B
------- -------
Inception date 12/31/92 11/4/93
Newspaper symbol Intl Eq Intl Eq
Net assets $17.9 Million $7.4 Million
</TABLE>
Investment Style/Market Cap
- -------------------------
| | | |
| | | X | Large
| | | |
- -------------------------
| | | |
| | | | Med.
| | | |
- -------------------------
| | | |
| | | | Small
| | | |
- -------------------------
Value Blend Growth
38
<PAGE>
Chase Vista International Equity Fund
as of October 31, 1998
(unaudited)
How the Fund Performed
Chase Vista International Equity Fund, which seeks long-term growth of capital
by investing in the common stocks of established overseas companies, provided
shareholders with a total return of 2.96% (Class A shares, without sales
charges) for the one-year period ended October 31, 1998.
How the Fund Was Managed
The Fund's exposure to European stocks contributed positively to performance,
while the lackluster investment results registered by Japanese, southeast Asian
and Latin American markets detracted from the Fund's investment results.
European stocks recorded solid gains thanks to generally favorable economic
conditions, fueled by low inflation and falling interest rates. The corporate
restructuring that has taken place on the continent in recent years also helped
corporate earnings improve. Additionally, investor optimism over the creation of
the 11-country European Monetary Union proved to be a positive development for
equities. The EMU, which is slated to begin on January 1, 1999, will create a
marketplace larger than that of the U.S. as well as a single currency.
Troubles in Japan's banking system and the country's weak economic conditions
had the most significant effect on Japanese equities. Japanese stocks enjoyed a
strong rally in January when the government announced an economic reform
package, but the market relinquished those gains after investors determined the
plan was insufficient. Stocks rallied again in June, when the Federal Reserve
intervened in the currency markets to help support the sagging yen, but that
rally also faded as is sometimes the case following a government intervention.
Southeast Asian markets were under pressure throughout much of the period due
to the economic crisis that has gripped the region for more than a year. Latin
American markets also struggled, as financial troubles along the Pacific Rim
magnified inherent economic shortcomings in countries such as Mexico.
Where the Fund May Be Headed
Our outlook for Europe remains favorable. The positive factors that helped fuel
higher prices in 1998 are, for the most part, still in place. We remain
cautious on Japan and intend to maintain that posture until the government
introduces what we consider to be a meaningful economic reform package.
Similarly, governments in Southeast Asia and Latin America must make
significant progress in addressing their inherent economic troubles before we
become optimistic about the growth prospects for companies in those regions.
39
<PAGE>
Chase Vista International Equity Fund
as of October 31, 1998
(unaudited)
How Much of the Fund Was Invested
[PIE CHART]
Cash/Other 0.05%
Investments 99.95%
What the International Equity Portfolio Invested In
Percentage of Total Portfolio Investments
[PIE CHART]
Brazil 1.0%
Finland 2.5%
France 11.9%
Germany 20.9%
Ireland 2.4%
Italy 6.3%
Japan 10.1%
Netherlands 5.1%
Spain 3.6%
Switzerland 6.3%
Sweden 1.4%
United Kingdom 22.2%
Portugal 2.7%
Malta 1.1%
Other 2.5%
Top Ten Equity Holdings of the Portfolio
1. MobilCom AG (3.3%) Provides mobile telephone service by buying air time from
licensed providers and reselling it to consumers through its own sales and
service organization.
2. Olivetti Group SPA (3.1%) Manufactures office and computer equipment, office
furniture and furnishings, component parts, specialized information systems
and telecommunications services.
3. British Aerospace PLC (2.8%) The Company produces military aircraft,
satellites, guidance weapons and other systems.
4. Roche Holding AG (2.7%) Develops pharmaceuticals and drugs, fine chemicals
and vitamins, fragrances and flavors, diagnostic equipment and liquid
crystals.
5. Vodafone Group PLC (2.7%) Provides telecommunications services which include
cellular radio, wide area paging, distribution, packet radio and value added
network services.
6. Kamps AG (2.6%) Produces and sells baked goods including breads, cookies,
biscuits and snack food, emphasizing regional specialities.
7. Novartis AG (Registered) (2.4%) Manufactures healthcare products for use in
a broad range of medical fields, as well as nutritional and agricultural
products.
8. Banco Comercial Portugues, SA (2.3%) A commercial bank offering money
management, brokerage and insurance to clients.
9. Lagardere SA (2.3%) A holding company with interests in the publishing,
distribution, audiovisual production and services, aerospace/ defense,
telecommunications and banking sectors.
10. Nokia Oyj, A Shares (2.1%) Develops and manufactures mobile phones, networks
and systems for cellular and fixed networks. The Company also develops and
supplies access networks and other telecom related products.
Top 10 equity holdings comprised 26.3% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
40
<PAGE>
Chase Vista International Equity Fund
as of October 31, 1998
(unaudited)
Average Annual Total Returns+
This table shows the average annual total returns. This is where you can see
the Fund's short-term performance, which, as with the stock markets, tends to
be more volatile than the long-term trend.
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Years (12/31/92)
------ ------- ----------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge 2.96% 2.42% 5.04%
With Sales Charge* -2.96% 1.21% 3.98%
Class B Shares
Without CDSC 2.56% 1.91% 4.59%
With CDSC** -2.57% 1.50% 4.41%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
* Sales charge for Class A Shares is 5.75%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period,
and a 2% CDSC for the period since inception.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting
and taxations policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the
United States and other nations. The fund may be also subject to the additional
risk of non-diversified "regional" fund investing.
+ The Fund commenced operations on 12/31/92. Class B shares were introduced on
11/4/93. Investors should note that information presented for Class B prior to
their introduction is based upon historical expenses of the predecessor Class A
Shares, which are lower than the actual expenses of the Class B Shares.
41
<PAGE>
Chase Vista International Equity Fund
as of October 31, 1998
(unaudited)
Life of Fund Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista International Equity Fund compared to its
key benchmarks. This is where you see the Fund's long-term trend. This chart is
for illustrative purposes only.
[LINE CHART]
<TABLE>
<CAPTION>
Chase Vista MSCI Lipper
International EAFE International
Equity Fund Index Funds Average
------------- ----- -------------
<S> <C> <C> <C>
1992 9,425 10,000 10,000
1993 11,140 13,581 12,947
1994 11,654 14,990 14,330
1995 11,449 14,980 14,182
1996 11,923 16,595 15,738
1997 12,194 17,410 17,312
1998 12,555 19,143 17,981
</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 International Equity Fund, the Lipper International Funds
Average and the MSCI EAFE Index from December 31, 1992 to October 31, 1998. The
performance of the Fund assumes 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 Fund is currently waiving fees. This voluntary waiver may be modified or
terminated at any time, which would reduce performance.
The Lipper International Funds Average represents the average performance of a
universe of 485 actively managed international stock funds. Lipper is an
independent mutual fund performance monitor whose results are based on total
return and do not reflect a sales charge.
The MSCI EAFE (Europe, Australia, Far East) Index is a replica (or model) of
the performance of the world's equity markets, excluding the U.S. and Canada.
The Index is unmanaged and reflects the reinvestment of dividends. An
individual cannot invest directly in the Index.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting
and taxation policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the
Unites States and other nations.
42
<PAGE>
Chase Vista Mutual Funds
Statement of Assets and Liabilities October 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Southeast
European Asian Japan
Fund Fund Fund
---------------- --------------- ---------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Note 1) ................. $40,281,632 $2,440,733 $1,845,554
Cash ........................................... 57,975 541,607 259,571
Foreign Currency ............................... 3,176,013 438,831 5,727
Receivables:
Variation margin .............................. -- 23,826 4,763
Open forward currency contracts ............... 58,641 6,654 340
Investment securities sold .................... 1,673,629 153,350 149,357
Interest and dividends ........................ 81,518 9,774 4,741
Trust shares sold ............................. 581,998 -- 537
Expense reimbursement from
Distributor ................................... -- 18,953 13,571
Other assets (a) ............................... 559 371,971 33,989
----------- ---------- ----------
Total Assets ................................. 45,911,965 4,005,699 2,318,150
----------- ---------- ----------
LIABILITIES:
Payables:
Investment securities purchased ............... 2,410,698 64,501 76,532
Trust shares redeemed ......................... 69,787 -- 31,624
Open forward currency contracts ............... 65,041 73 16,077
Accrued liabilities: (Note 2)
Investment advisory fees ...................... 10,025 3,076 1,920
Administration fees ........................... 5,012 -- --
Shareholder servicing fees .................... 1,930 -- --
Distribution fees ............................. 12,213 488 270
Custodian ..................................... 32,722 9,353 3,342
Other ......................................... 104,211 23,226 27,445
----------- ---------- ----------
Total Liabilities ............................ 2,711,639 100,717 157,210
----------- ---------- ----------
NET ASSETS:
Paid in capital ................................ 42,508,781 9,179,931 4,055,767
Accumulated undistributed net investment
income (loss) ................................. 206,860 (38,956) 15,435
Accumulated undistributed net realized
gain (loss) on investments, futures and
foreign exchange transactions ................. 235,863 (5,411,697) (1,999,157)
Net unrealized appreciation (depreciation)
of investments, futures, and foreign
exchange transactions ......................... 248,822 175,704 88,895
----------- ---------- ----------
Total Net Assets ................................. $43,200,326 $3,904,982 $2,160,940
=========== ========== ==========
Shares of beneficial interest outstanding
($0.01 par value; unlimited number of shares authorized):
Class A Shares ................................. 2,331,181 507,546 276,301
Class B Shares ................................. 664,220 136,545 61,833
Net Asset Value:
Class A Shares (and redemption price) .......... $ 14.47 $ 6.09 $ 6.41
Class B Shares* ................................ $ 14.24 $ 5.98 $ 6.32
Class A Maximum Public Offering Price Per
Share (net asset value/94.25%) .................. $ 15.35 $ 6.46 $ 6.80
=========== ========== ==========
Cost of Investments .............................. $40,013,934 $2,301,280 $1,764,287
=========== ========== ==========
Cost of Foreign Currency ......................... $ 3,193,701 $ 432,245 $ 3,757
=========== ========== ==========
</TABLE>
- --------------
* Redemption price may be reduced by contingent deferred sales charge.
(a) Includes foreign cash segregated for open futures contracts.
See notes to financial statements.
43
<PAGE>
Chase Vista Mutual Funds
Statement of Assets and Liabilities (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Latin International
American Equity
Fund Fund
---------- -----------
<S> <C> <C>
ASSETS:
Investments, at value (Note 1) ......................... $6,486,542 $25,552,557
Cash ................................................... 7,240 --
Foreign Currency ....................................... -- --
Receivables:
Variation margin ...................................... -- --
Open forward currency contracts ....................... -- --
Investment securities sold ............................ 158,183 --
Interest and dividends ................................ 20,567 --
Trust shares sold ..................................... -- 9,559
Expense reimbursement from Distributor ................ 7,000 --
Other assets ........................................... 87 3,264
---------- -----------
Total Assets ......................................... 6,679,619 25,565,380
---------- -----------
LIABILITIES:
Payables:
Investment securities purchased ....................... 304,164 --
Trust shares redeemed ................................. -- 76,946
Open forward currency contracts ....................... -- --
Accrued liabilities: (Note 2)
Investment advisory fees .............................. 4,067 --
Administration fees ................................... -- --
Shareholder servicing fees ............................ -- 3,550
Distribution fees ..................................... -- 4,133
Custodian ............................................. 1,020 --
Other ................................................. 26,135 78,589
---------- -----------
Total Liabilities .................................... 335,386 163,218
---------- -----------
NET ASSETS:
Paid in capital ........................................ 9,689,858 23,395,252
Accumulated undistributed net investment
income (loss) ......................................... (86) 44,997
Accumulated undistributed net realized gain (loss) on
investments, futures and foreign exchange
transactions .......................................... (2,080,365) 995,102
Net unrealized appreciation (depreciation) of
investments, futures, and foreign exchange
transactions .......................................... (1,265,174) 966,811
---------- -----------
Total Net Assets ......................................... $6,344,233 $25,402,162
========== ===========
Shares of beneficial interest outstanding
($0.01 par value; unlimited number of shares authorized):
Class A Shares ......................................... 1,136,356 1,487,230
Class B Shares ......................................... 7,582 623,861
Net Asset Value:
Class A Shares (and redemption price) .................. $ 5.55 $ 12.08
Class B Shares* ........................................ $ 5.53 $ 11.92
Class A Maximum Public Offering Price Per Share (net
asset value/94.25%) ..................................... $ 5.89 $ 12.82
========== ===========
Cost of Investments ...................................... $7,751,300 --
========== ===========
Cost of Foreign Currency ................................. -- --
========== ===========
</TABLE>
- --------------
* Redemption price may be reduced by contingent deferred sales charge.
See notes to financial statements.
44
<PAGE>
Chase Vista Mutual Funds
Statement of Operations For the year ended October 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Southeast
European Asian Japan
Fund Fund Fund
-------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend ......................................... $435,413 $ 108,366 $ 25,176
Interest ......................................... 88,641 31,425 31,212
Investment income from Portfolio ................. -- -- --
Foreign taxes withheld ........................... (51,129) (4,556) (3,776)
Expenses from Portfolio .......................... -- -- --
-------- ----------- -----------
Total investment income ......................... 472,925 135,235 52,612
-------- ----------- -----------
EXPENSES: (Note 2)
Investment Advisory fees ......................... 279,521 53,521 41,865
Administration fees .............................. 41,082 8,028 6,281
Shareholder servicing fees ....................... 15,675 2,476 1,891
Distribution fees ................................ 101,231 18,332 14,248
Custodian fees ................................... 98,473 65,365 25,050
Printing and postage ............................. 26,147 6,206 6,658
Professional fees ................................ 28,415 20,625 18,037
Registration costs ............................... 35,194 2,055 14,218
Transfer agent fees .............................. 83,872 38,996 33,682
Trustees fees and expenses ....................... 1,398 268 209
Other ............................................ 1,757 5,268 915
-------- ----------- -----------
Total expenses .................................. 712,765 221,140 163,054
-------- ----------- -----------
Less amounts waived (Note 2E) ...................... 176,413 69,336 54,090
Less expenses borne by the Distributor ............. -- 50,716 30,027
-------- ----------- -----------
Net expenses ..................................... 536,352 101,088 78,937
-------- ----------- -----------
Net investment income (loss) ..................... (63,427) 34,147 (26,325)
-------- ----------- -----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments ...................................... 134,377 (4,004,535) (1,354,485)
Futures transactions ............................. 260,880 (91,274) (132,469)
Foreign currency transactions .................... 111,837 (238,413) (251,457)
Change in net unrealized appreciation/
depreciation on:
Investments ..................................... (548,816) 2,601,225 512,238
Futures transactions ............................ -- (21,908) (68,327)
Foreign currency transactions ................... 36,605 25,324 32,961
-------- ----------- -----------
Net realized and unrealized gain (loss) .......... (5,117) (1,729,581) (1,261,539)
-------- ----------- -----------
Net increase (decrease) in net assets from
operations ...................................... $(68,544) $(1,695,434) $(1,287,864)
======== =========== ===========
</TABLE>
- --------------
* The fund commenced operations 12/1/97.
See notes to financial statements.
45
<PAGE>
Chase Vista Mutual Funds
Statement of Operations (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Latin International
American Equity
Fund* Fund
----------- -------------
<S> <C> <C>
INVESTMENT INCOME:
Dividend ...................................................... $ 256,343 $ --
Interest ...................................................... 28,338 --
Investment income from Portfolio .............................. -- 471,390
Foreign taxes withheld ........................................ (14,207) (45,266)
Expenses from Portfolio ....................................... -- (222,100)
----------- ----------
Total investment income ...................................... 270,474 204,024
----------- ----------
EXPENSES: (Note 2)
Investment Advisory fees ...................................... 60,228 --
Administration fees ........................................... 9,035 27,671
Shareholder servicing fees .................................... 15,058 69,177
Distribution fees ............................................. 15,094 107,819
Custodian fees ................................................ 52,513 --
Printing and postage .......................................... 14,121 67,726
Professional fees ............................................. 17,022 12,493
Registration costs ............................................ 12,616 14,986
Transfer agent fees ........................................... 23,619 146,399
Trustees fees and expenses .................................... 301 830
Other ......................................................... 7,338 8,326
----------- ----------
Total expenses ............................................... 226,945 455,427
----------- ----------
Less amounts waived (Note 2E) ................................... 95,966 74,418
Less expenses borne by the Distributor .......................... 26,505 10,329
----------- ----------
Net expenses .................................................. 104,474 370,680
----------- ----------
Net investment income (loss) .................................. 166,000 (166,656)
----------- ----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments ................................................... (2,080,365) 1,447,618
Futures transactions .......................................... -- (109,992)
Foreign currency transactions ................................. (50,921) (228,145)
Change in net unrealized appreciation/depreciation on:
Investments .................................................. (1,264,758) 431,677
Futures transactions ......................................... -- --
Foreign currency transactions ................................ (416) --
----------- ----------
Net realized and unrealized gain (loss) ....................... (3,396,460) 1,541,158
----------- ----------
Net increase (decrease) in net assets from operations ......... $(3,230,460) $1,374,502
=========== ==========
</TABLE>
- --------------
* The fund commenced operations 12/1/97.
See notes to financial statements.
46
<PAGE>
Chase Vista Funds
Statement of Changes in Net Assets For the periods indicated
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
European Fund Southeast Asian Fund
------------------------------ ------------------------------
Year ended October 31,
-------------------------------------------------------------
1998 1997 1998 1997
------------ ----------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) .................. $ (63,427) $ 27,889 $ 34,147 $ 41,847
Net realized gain (loss) on investments,
futures and foreign currency transactions .... 507,094 2,218,863 (4,334,222) (1,402,735)
Change in net unrealized appreciation/
depreciation on investments, futures
and foreign exchange ......................... (512,211) 322,275 2,604,641 (2,804,463)
------------ ----------- ------------- -------------
Increase (decrease) in net assets from
operations ................................... (68,544) 2,569,027 (1,695,434) (4,165,351)
------------ ----------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM: (Note 1) .................................
Net investment income ......................... (270,343) (59,310) -- --
Net realized gain on investment transactions (1,883,844) (568,911) -- (535,632)
Tax return of capital ......................... -- -- (36,196) (19,890)
------------ ----------- ------------- -------------
Total distributions .......................... (2,154,187) (628,221) (36,196) (555,522)
------------ ----------- ------------- -------------
Net increase (decrease) in net assets from
shares of beneficial interest transactions 30,240,238 6,693,863 (1,981,050) 2,665,871
------------ ----------- ------------- -------------
Total increase (decrease) .................... 28,017,507 8,634,669 (3,712,680) (2,055,002)
NET ASSETS:
Beginning of period ........................... 15,182,819 6,548,150 7,617,662 9,672,664
------------ ----------- ------------- -------------
End of period ................................. $ 43,200,326 $15,182,819 $ 3,904,982 $ 7,617,662
============ =========== ============= =============
<CAPTION>
Latin American International Equity
Japan Fund Fund* Fund
-------------------------- ------------- --------------------------
Year ended October 31, 12/01/97 Year ended October 31,
-------------------------- Through --------------------------
1998 1997 10/31/98 1998 1997
------------- ---------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) .................. $ (26,325) $ (57,439) $ 166,000 $ (166,656) $ (159,743)
Net realized gain (loss) on investments,
futures and foreign currency transactions .... (1,738,411) 18,951 (2,131,286) 1,109,481 1,200,584
Change in net unrealized appreciation/
depreciation on investments, futures
and foreign exchange ......................... 476,872 (103,293) (1,265,174) 431,677 (2,047)
------------- ---------- ------------- ------------ ------------
Increase (decrease) in net assets from
operations ................................... (1,287,864) (141,781) (3,230,460) 1,374,502 1,038,794
------------- ---------- ------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM: (Note 1) .................................
Net investment income ......................... (187,298) (113,008) (115,165) (123,572) (70,477)
Net realized gain on investment transactions -- -- -- (678,827) (1,359,426)
Tax return of capital ......................... (98,133) -- (27,259) -- --
------------- ---------- ------------- ------------ ------------
Total distributions .......................... (285,431) (113,008) (142,424) (802,399) (1,429,903)
------------- ---------- ------------- ------------ ------------
Net increase (decrease) in net assets from
shares of beneficial interest transactions (3,166,483) 2,213,206 9,717,117 (6,425,985) (1,076,165)
------------- ---------- ------------- ------------ ------------
Total increase (decrease) .................... (4,739,778) 1,958,417 6,344,233 (5,853,882) (1,467,274)
NET ASSETS:
Beginning of period ........................... 6,900,718 4,942,301 -- 31,256,044 32,723,318
------------- ---------- ------------- ------------ ------------
End of period ................................. $ 2,160,940 $6,900,718 $ 6,344,233 $ 25,402,162 $ 31,256,044
============= ========== ============= ============ ============
</TABLE>
- -------
* The fund commenced operations 12/1/97.
See notes to financial statements.
47
<PAGE>
Chase Vista Funds
Notes to Financial Statements
- --------------------------------------------------------------------------------
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 the Chase Vista Funds.
European Fund ("CVEF"), Southeast Asian Fund ("CVSEAF"), Japan Fund ("CVJF"),
Latin American Equity Fund ("CVLAEF") and International Equity Fund ("CVIEF"),
collectively, the "Funds", are five separate series of the Trust. CVLAEF
commenced operations on December 1, 1997. The Funds each offer two classes of
shares. Class A shares generally provide for a front-end sales charge while
Class B shares provide for a contingent deferred sales charge. All classes of
shares have equal rights as to earnings, assets and voting privileges except
that each class may bear different distribution and shareholder servicing fees
and each class has exclusive voting rights with respect to its distribution
plan.
The following is a summary of significant accounting policies followed by the
Funds:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates.
A. CVIEF
Since inception, the CVIEF has utilized the Master Feeder Fund Structure.
CVIEF seeks to achieve its investment objective by investing all of its
investable assets of the Fund in the International Equity Portfolio (the
"Portfolio"). The Portfolio, like the Fund, is an open-end management
investment company having the same investment objectives as the Fund. As of
October 31, 1998 CVIEF owned 99.99% of the Portfolio. The financial
statements of the Portfolio, including the portfolio of investments, are
included elsewhere in this report and should be read in conjunction with the
financial statements of the Fund.
1. Valuation of Investments -- CVIEF records its investments in the
Portfolio at value. Securities of the Portfolio are recorded at value as
more fully discussed in the notes to those financial statements.
2. Foreign Currency Translations -- The books and records of the
Portfolio are maintained in U.S. dollars, the foreign currency
translation policy is more fully discussed in the notes to those
financial statements.
3. Investment Income -- CVIEF records daily its pro-rata share of the
Portfolio's income and expenses, and realized and unrealized gains and
losses. In addition, the Fund accrues its own expenses daily as
incurred. Realized gain/losses and changes in unrealized
appreciation/depreciation represent the Fund's share of such elements
allocated from the Portfolio.
B. CVEF, CVSEAF, CVJF and CVLAEF
Investments in international markets may involve certain considerations and
risks not typically associated with investments in the United States.
Future economic and political developments in foreign countries could
adversely affect the liquidity or value, or both, of such securities in
which the Fund is invested.
1. Valuation of Investments -- Equity securities, purchased options and
futures contracts 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
48
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
purchase are valued, through the 61st day prior to maturity, at market
value based on quotations obtained from market makers or other appropriate
sources; thereafter, the value on the 61st day is amortized on a
straight-line basis over the remaining number of days to maturity.
Short-term investments with 60 days or less to maturity at time of
purchase are valued at amortized cost, which approximates market.
Portfolio securities for which there are no such quotations or valuations
are valued at fair value as determined in good faith by or at the
direction of the Trustees.
2. Repurchase Agreements -- It is the Trust's policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government Agency
securities. All collateral is held by the Trust's custodian bank,
subcustodian, or a bank with which the custodian bank has entered into a
subcustodian agreement, or is segregated in the Federal Reserve Book Entry
System. In connection with transactions in repurchase agreements, if the
seller defaults and the value of the collateral declines, or if the seller
enters an insolvency proceeding, realization of the collateral by the
Trust may be delayed or limited.
3. Futures Contracts -- When a fund enters into a futures contract, it
makes an initial margin deposit in a segregated account, either in cash or
liquid securities. Thereafter, the futures contract is marked to market
and the fund makes (or receives) additional cash payments daily to the
broker. Changes in the value of the contract are recorded as unrealized
appreciation/depreciation until the contract is closed or settled.
The Funds may enter into futures contracts only on exchanges or boards of
trade. The exchange or board of trade acts as the counterparty to each
futures transaction, therefore, the Fund's credit risk is limited to
failure of the exchange or board of trade.
Index futures contracts are used to control the asset mix of the
portfolios in the most efficient manner, allowing the Funds to adjust
country exposures while incurring minimal transaction costs. Short index
futures contracts are used for hedging purposes, i.e. to reduce the
exposure to equities. Long index futures contracts are used to gain
exposure to equities, when it is anticipated that this will be more
efficient than buying stocks directly. Use of long futures contracts
subjects the Fund to risk of loss up to the amount of the nominal value of
the futures contracts as shown in the Portfolio of Investments. Use of
short futures contracts subject the Fund to unlimited risk.
The Funds held open futures contracts as of October 31, 1998 as listed on
the Portfolio of Investments.
4. Foreign Currency Translation -- The books and records of the Funds are
maintained in U.S. dollars. Foreign currency amounts are translated into
U.S. dollars at the prevailing exchange rates, or at the mean of the
current bid and asked prices, of such currencies against the U.S. dollar
as quoted by a major bank, on the following basis:
a. Market value of investment securities and other assets and
liabilities: at the rate of exchange at the valuation date.
b. Purchases and sales of investment securities, income and expenses:
at the rates of exchange prevailing on the respective dates of such
transactions.
Although the net assets of the Funds are presented at the foreign exchange
rates and market values at the close of the periods, the Funds do not
isolate that portion of the results of operations arising as a result of
changes in the foreign exchange rates from the fluctuations arising from
changes in the market prices of securities held or sold during the year.
Accordingly, such realized foreign currency gains
49
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
(losses) are included in the reported net realized gains (losses) on
investment transactions.
Reported realized foreign currency gains or losses arise from disposition
of foreign currency, currency gains or losses realized between the trade
and settlement dates on securities transactions, and the difference
between the amounts of dividends, interest, and foreign withholding taxes
recorded on the Funds' books on the transaction date and the U.S. dollar
equivalent of the amounts actually received or paid. Unrealized foreign
exchange gains and losses arise from changes (due to the changes in the
exchange rate) in the value of foreign currency and other assets and
liabilities denominated in foreign currencies which are held at period
end.
5. Forward Foreign Currency Exchange Contracts -- The Funds may enter into
forward foreign currency contracts (obligations to purchase or sell
foreign currency in the future on a date and price fixed at the time the
contracts are entered into) to hedge the Fund against fluctuations in the
value of its assets or liabilities due to change in the value of foreign
currencies. Each day the forward contract is open, changes in the value of
the contract are recognized as unrealized gains or losses by "marking to
market". When the forward contract is closed, or the delivery of the
currency is made or taken, the Fund records a realized gain or loss equal
to the difference between the proceeds from (or cost of) the closing
transaction and the Fund's basis in the contract. The Funds are subject to
off-balance sheet risk to the extent of the value of the contracts for
purchases of currency and in an unlimited amount for sales of currency.
6. 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.
7. Bank Borrowings -- The Funds may borrow money for temporary or
emergency purposes. Any borrowings representing more than 5% of a Fund's
total assets must be repaid before the Fund may make additional
investments. The Funds have entered into an agreement, enabling them to
participate with other Chase Vista Funds in an unsecured line of credit
with a syndicate of banks, which permits borrowings up to $350 million,
collectively. Interest is charged to each Fund based on its borrowings at
an annual rate equal to the sum of the Federal Funds Rate plus 0.35%. The
Funds also pay a commitment fee of 0.055% per annum on the average daily
amount of the available commitment, which is allocated on a pro-rata basis
to the funds. The commitment fee is included in Other expenses on the
Statement of Operations. Borrowings are payable on demand.
The Funds had no borrowings outstanding at October 31, 1998 nor at any
time during the year.
C. General Policies
1. Federal Income Taxes -- Each Fund is treated as a separate taxable
entity for Federal income tax purposes. The Trust's policy is to comply
with the provisions of the Internal Revenue Code applicable to regulated
investment companies and to distribute to shareholders all of its
distributable net investment income, and net realized gain on investments.
In addition, the Trust intends to make distributions as required to avoid
excise taxes. Accordingly, no provision for Federal income or excise tax
is necessary.
2. Distributions to Shareholders -- Dividends 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
50
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
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.
3. Expenses -- Expenses of the Trust directly attributable to a Fund are
charged to that Fund; other expenses are allocated proportionately among
each Fund within the trust in relation to the net assets of each Fund or
on another reasonable basis. In calculating the net asset value per share
of each class, investment income, realized and unrealized gains and losses
and expenses other than class specific expenses, are allocated daily to
each class of shares based upon the proportion of net assets of each class
at the beginning of each day.
2. Fees and Other Transactions with Affiliates
A. Investment Advisory Fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank ("Chase" or the "Advisor"), acts as the
Investment Advisor to the CVEF, CVSEAF, CVJF, and CVLAEF. 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 1.00% of the average daily net assets of each Fund. The Advisor
voluntarily waived all or a portion of its fees as outlined in Note 2.E
below.
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 0.50% of each Fund's average daily net assets.
B. Shareholder Servicing Fees -- The Trust has adopted an Administrative
Services Plan for the Class B Shares of all of the Funds and Class A of CVIEF
and CVLAEF, which, among other things, provides that the Trust on behalf of
the Funds may obtain the services of one or more Shareholder Servicing
Agents. For its services, the Shareholder Servicing Agent will receive a fee
that is computed daily and paid monthly at an annual rate equal to 0.25% of
the average daily net assets of the Class B Shares of each Fund and for the
Class A Shares of CVLAEF and CVIEF. No Shareholder Servicing Fees have been
charged to Class A Shares of CVEF, CVSEAF and CVJF. The Shareholder Servicing
Agents voluntarily waived all or a portion of their fees as outlined in Note
2.E. below.
Since inception, Chase, and certain affiliates have been the only Shareholder
Servicing Agents of the Funds.
C. Distribution and Sub-Administration Fees -- Pursuant to a Distribution and
Sub-Administration Agreement, Vista Fund Distributors, Inc. (the
"Distributor" or "VFD"), a wholly owned subsidiary of The BISYS Group, Inc.,
acts as the Trust's exclusive underwriter and promotes and arranges for the
sale of each Fund's shares. In addition, the Distributor provides certain
sub-administration services to the Trust, including providing officers,
clerical staff and office space for an annual fee of 0.05% of the average
daily net assets of each Fund. The Trustees have adopted Distribution Plans
(the "Distribution Plans") for Class A and B shares of the Funds in
accordance with Rule 12b-1 under the 1940 Act. The Class A Distribution Plans
provide that each Fund shall pay 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 for distribution services. The
Class B Distribution Plan provides that each Fund shall pay distribution
fees, including payments to the Distributor, at an annual rate not to exceed
0.75% of the average annual net assets of the Class B Shares for distribution
services.
51
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
The Distributor voluntarily waived all or a portion of its fees as outlined
in Note 2.E. below.
D. Administration Fee -- Pursuant to an Administration Agreement, Chase (the
"Administrator") provides certain administration services to the Trust. For
these services and facilities, the Administrator receives from CVEF, CVSEAF,
CVJF, and CVLAEF a fee computed at the annual rate equal to 0.10% of the
respective Fund's average daily net assets and from CVIEF at the annual rate
equal to 0.05% of the Fund's average daily net assets. The Administrator
voluntarily waived all or a portion of the administration fees as outlined in
Note 2.E. below.
E. Waivers of fees -- For the year ended October 31, 1998, the Administrator,
Investment Adviser, Distributor and Shareholder Servicing Agents voluntarily
waived fees for each of the Funds as follows:
<TABLE>
<CAPTION>
CVEF CVSEAF CVJF CVLAEF CVIEF
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Fee Waivers
- --------------------------------
Administration .............. $ 9,669 $ 8,028 $ 6,281 $ 9,035 $27,671
Investment Advisory ......... 166,744 53,521 41,865 60,228 --
Distribution fees ........... -- 6,228 5,042 11,645 33,485
Shareholder servicing
fees ....................... -- 1,559 902 15,058 13,262
-------- ------- ------- ------- -------
Total ..................... $176,413 $69,336 $54,090 $95,966 $74,418
======== ======= ======= ======= =======
VFD Reimbursement ........... $ -- $50,716 $30,027 $26,505 $10,329
</TABLE>
F. Other -- Certain officers of the Trust are officers of Vista Fund
Distributors, Inc. or of its parent corporation, BISYS.
Chase provides portfolio accounting and custody services for CVEF, CVSEAF,
CVJF, and CVLAEF. Compensation for such services is presented in the
Statement of Operations as custodian fees.
3. Investment Transactions -- For October 31, 1998, purchases and sales of
investments (excluding short-term investments) were as follows:
<TABLE>
<CAPTION>
CVEF CVSEAF CVJF CVLAEF
----------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Purchases (excluding
U.S. Government)..... $71,403,626 $12,976,104 $6,913,614 $13,826,589
Sales (excluding U.S.
Government) ......... 47,332,604 15,323,053 9,055,579 5,202,462
</TABLE>
4. Federal Income Tax Matters -- For Federal income tax purposes, the cost and
unrealized appreciation (depreciation) in value of the investment securities at
October 31, 1998, are as follows:
<TABLE>
<CAPTION>
Latin
Southeast American
European Asian Japan Equity
Fund Fund Fund Fund
-------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
Aggregate cost ........................ $40,153,281 $2,474,136 $1,764,287 $ 7,968,173
----------- ---------- ---------- ------------
Gross unrealized appreciation ......... $ 3,195,400 $ 134,145 $ 203,277 $ 224,311
Gross unrealized depreciation ......... ( 3,067,049) (167,548) (122,010) (1,705,942)
----------- ---------- ---------- ------------
Net unrealized appreciation
(depreciation) ...................... $ 128,351 $ (33,403) $ 81,267 $ (1,481,631)
=========== ========== ========== ============
</TABLE>
At October 31, 1998, the CVSEAF had a net capital loss carryover of
approximately $5,267,000, which will be available to offset capital gains
arising through October 31, 2005 and 2006. At October 31, 1998 CVJF had a net
capital loss carryover of approximately $1,999,000, which will be available to
offset capital gains arising through
52
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
October 31, 2004 and 2006. At October 31, 1998, the CVLAEF had a net capital
loss carryover of approximately $1,863,000, which will be available to offset
capital gains arising through October 31, 2006. To the extent that any net
capital loss carryovers are used to offset future capital gains, it is probable
that the gains so offset will not be distributed to shareholders.
5. Transactions in Shares of Beneficial Interest -- Transactions in Shares of
Beneficial Interest were as follows:
<TABLE>
<CAPTION>
European Fund
-----------------------------------------------------------
Year Ended October 31,
1998 1997
----------------------------- -----------------------------
Amount Shares Amount Shares
Class A --------------- ------------- --------------- -------------
<S> <C> <C> <C> <C>
Shares sold .................... $ 24,838,015 1,566,625 $ 6,046,866 475,708
Shares issued in reinvestment of
distributions ................ 1,134,729 90,297 317,578 26,732
Shares redeemed ................ (3,631,341) (245,168) (1,468,167) (113,203)
------------ --------- ------------ --------
Net increase (decrease) in Trust
shares outstanding ........... $ 22,341,403 1,411,754 $ 4,896,277 389,237
============ ========= ============ ========
European Fund
------------------------------------------------------------
Year Ended October 31,
1998 1997
-------------------------- ---------------------------
Class B Amount Shares Amount Shares
------------- --------- ------------- --------
Shares sold .................... $ 9,810,431 635,367 $ 1,973,442 156,388
Shares issued in reinvestment of
distributions ................ 290,599 23,583 25,246 2,139
Shares redeemed ................ (2,202,195) (153,965) (201,102) (15,254)
------------- --------- ------------- --------
Net increase (decrease) in Trust
shares outstanding ........... $ 7,898,835 504,985 $ 1,797,586 143,273
============= ========= ============= ========
Southeast Asian Fund
------------------------------------------------------------
Year Ended October 31,
1998 1997
-------------------------- ---------------------------
Class A Amount Shares Amount Shares
------------- --------- ------------- --------
Shares sold .................... $ 1,440,407 213,843 $ 5,782,426 482,047
Shares issued in reinvestment of
distributions ................ 15,760 2,646 336,152 28,019
Shares redeemed ................ (3,567,263) (522,912) (3,889,478) (401,922)
------------- --------- ------------- --------
Net increase (decrease) in Trust
shares outstanding ........... $ (2,111,096) (306,423) $ 2,229,100 108,144
============= ========= ============= ========
Southeast Asian Fund
------------------------------------------------------------
Year Ended October 31,
1998 1997
-------------------------- ---------------------------
Class B Amount Shares Amount Shares
------------- --------- ------------- --------
Shares sold .................... $ 972,858 138,436 $ 1,737,310 150,937
Shares issued in reinvestment of
distributions ................ 3,461 606 64,154 5,396
Shares redeemed ................ (846,273) (134,677) (1,364,693) (126,869)
------------- --------- ------------- --------
Net increase (decrease) in Trust
shares outstanding ........... $ 130,046 4,365 $ 436,771 29,464
============= ========= ============= ========
</TABLE>
53
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Japan Fund
----------------------------------------------------------------------
Year Ended October 31,
1998 1997
----------------------------------- --------------------------------
Amount Shares Amount Shares
Class A ----------------- --------------- ---------------- -------------
<S> <C> <C> <C> <C>
Shares sold ........................ $ 449,737 55,013 $1,738,000 173,318
Shares issued in reinvestment
of distributions ................. 64,699 7,532 22,242 2,417
Shares redeemed .................... (2,479,074) (312,499) (1,482,838) (157,103)
----------- -------- ---------- --------
Net increase (decrease) in
Trust shares outstanding ......... $(1,964,638) (249,954) $ 277,404 18,632
=========== ======== ========== ========
Japan Fund
-------------------------------------------------------------------------
Year Ended October 31,
1998 1997
----------------------------------- --------------------------------
Class B Amount Shares Amount Shares
----------------- --------------- ---------------- -------------
Shares sold ........................ $ 245,921 30,693 $2,065,148 196,578
Shares issued in reinvestment
of distributions ................. 48,224 5,653 6,797 663
Shares redeemed .................... (1,495,990) (175,456) (136,143) (13,584)
----------- -------- ---------- --------
Net increase (decrease) in
Trust shares outstanding ......... $(1,201,845) (139,110) $1,935,802 183,657
=========== ======== ========== ========
Latin American Fund
--------------------------------
12/01/97**
through
10/31/98
--------------------------------
Class A Amount Shares
----------- ---------
Shares sold ........................ $10,976,012 1,333,183
Shares issued in reinvestment
of distributions ................. 21,263 2,684
Shares redeemed .................... (1,326,180) (199,511)
----------- ---------
Net increase (decrease) in
Trust shares outstanding ......... $ 9,671,095 1,136,356
=========== =========
Latin American Fund
--------------------------------
3/24/98*
Through
10/31/98
--------------------------------
Class B Amount Shares
----------- ---------
Shares sold .................... $46,011 7,581
Shares issued in reinvestment of
distributions ................ 61 8
Shares redeemed ................ (50) (7)
------- -----
Net increase (decrease) in Trust
shares outstanding ........... $46,022 7,582
======= =====
</TABLE>
- --------------
* Commencement of offering class of shares.
** Fund commenced operations.
54
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Equity Fund
-----------------------------------------------------------------
Year Ended October 31,
1998 1997
-------------------------------- --------------------------------
Amount Shares Amount Shares
Class A ---------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Shares sold .................. $ 22,214,113 1,760,489 $ 15,571,919 1,239,710
Shares issued in reinvestment
of distributions ........... 477,098 41,144 981,769 80,407
Shares redeemed .............. (28,433,278) (2,235,592) (17,919,728) (1,410,777)
------------- ---------- ------------- ----------
Net increase (decrease) in
Trust shares outstanding ... $ (5,742,067) (433,959) $ (1,366,040) (90,660)
============= ========== ============= ==========
International Equity Fund
------------------------------------------------------------------
Year Ended October 31,
1998 1997
-------------------------------- --------------------------------
Class B Amount Shares Amount Shares
-------------- ---------- -------------- ----------
Shares sold .................. $ 7,895,936 635,787 $ 5,139,431 415,783
Shares issued in reinvestment
of distributions ........... 181,139 15,881 328,637 27,160
Shares redeemed .............. (8,760,993) (696,779) (5,178,193) (413,069)
-------------- ---------- -------------- ----------
Net increase (decrease) in
Trust shares outstanding ... $ (683,918) (45,111) $ 289,875 29,874
============== ========== ============== ==========
</TABLE>
6. Open Forward Foreign Currency Contracts -- The following forward foreign
currency contracts were open at October 31, 1998:
<TABLE>
<CAPTION>
Chase Vista European Fund
- -------------------------------------------------------------------------------------------
Contract Contract Unrealized
Amount Amount Settlement Gain (Loss)
Purchased/(Sold) Sold/(Purchased) Date (USD)
- ------------------------------ ---------------------------- ------------ ------------
<S> <C> <C> <C>
Unrealized Gain
- ---------------
3,112,010,000 (ITL) 1,100,000 (GBP) 10-Nov-98 $ 58,641
========
Unrealized Loss
- ---------------
1,100,000 (GBP) 3,037,958,000 (ITL) 10-Nov-98 $(13,438)
7,923,960 (DEM) 2,900,000 (GBP) 11-Dec-98 (51,603)
--------
$(65,041)
========
</TABLE>
<TABLE>
<CAPTION>
Chase Vista South East Asian Fund
- --------------------------------------------------------------------------------------
Contract Contract Unrealized
Amount Amount Settlement Gain (Loss)
Purchased/(Sold) Sold/(Purchased) Date (USD)
- ---------------------------- ------------------------- ------------ ------------
<S> <C> <C> <C>
Unrealized Gain
- ---------------
(525,918) (AUD) (334,000) (USD) 19-Nov-98 $6,654
======
Unrealized Loss
- ---------------
2,253,000 (THB) 61,389 (USD) 04-Nov-98 $ (73)
======
</TABLE>
55
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Chase Vista Japan Fund
- ---------------------------------------------------------------------------------------
Contract Contract Unrealized
Amount Amount Settlement Gain (Loss)
Purchased/(Sold) Sold/(Purchased) Date (USD)
- ----------------------------- ------------------------- ------------ ------------
<S> <C> <C> <C>
Unrealized Gain
- -----------------------------
30,103,440 (JPY) 258,000 (USD) 02-Nov-98 $ 340
========
Unrealized Loss
- -----------------------------
38,671,920 (JPY) 336,000 (USD) 30-Nov-98 $ (2,650)
(13,147,950) (JPY) (111,000) (USD) 30-Nov-98 (2,335)
(65,904,240) (JPY) (557,000) (USD) 30-Nov-98 (11,092)
--------
$(16,077)
========
</TABLE>
- ---------
AUD--Australian Dollar
DEM--German Deutsche Mark
GBP--Great British Pound
ITL--Italian Lira
JPY--Japanese Yen
THB--Thai Baht
USD--United States Dollar
7. Foreign Cash Positions
<TABLE>
<CAPTION>
Chase Vista European Fund
------------------------------------------------------
Market Net Unrealized
Local Cost Value Gain (Loss)
Currency Currency (USD) (USD) (USD)
- --------------------------------- ------------ ------------ ------------ ---------------
<S> <C> <C> <C> <C>
Austrian Schilling .............. 137,676 $ 11,534 $ 11,815 $ 281
Belgian Franc ................... 4,186 124 123 (1)
British Pound Sterling .......... 516,093 868,826 864,301 (4,525)
European Currency Unit .......... 652,952 792,769 775,916 (16,853)
Finnish Markka .................. 9,310 1,862 1,848 (14)
French Franc .................... 511,814 92,062 92,105 43
German Deutsche Mark ............ 1,820,483 1,099,387 1,099,208 (179)
Italian Lira .................... 5,099,158 3,120 3,113 (7)
Netherlands Guilder ............. 300,303 160,641 160,790 149
Portuguese Escudo ............... 384,502 2,259 2,265 6
Spanish Peseta .................. 6,403,706 45,830 45,379 (451)
Swiss Franc ..................... 146,322 104,480 108,059 3,579
Swedish Krona ................... 86,695 10,807 11,091 284
---------- ---------- --------
$3,193,701 $3,176,013 ($ 17,688)
========== ========== ========
</TABLE>
<TABLE>
<CAPTION>
Chase Vista Southeast Asian Fund
----------------------------------------------------------
Market Net Unrealized
Local Cost Value Gain (Loss)
Currency Currency (USD) (USD) (USD)
- --------------------------- ------------ ----------- ----------- ---------------
<S> <C> <C> <C> <C>
Australian Dollar ......... 223,787 $137,480 $139,255 $ 1,775
Hong Kong Dollar .......... 1,110,172 143,300 143,356 56
Indonesian Rupiah ......... 315,318 42 41 (1)
Philippines Peso .......... 2,548,310 58,596 63,157 4,561
Singapore Dollar .......... 151,423 92,804 92,998 194
Thai Baht ................. 864 23 24 1
-------- -------- -------
$432,245 $438,831 $6,586
======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
Chase Vista Japan Fund
-------------------------------------------------------------
<S> <C> <C> <C> <C>
Japanese Yen .............. 667,377 $ 3,757 $ 5,727 $1,970
======== ======== ======
</TABLE>
56
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
8. Concentrations -- At October 31, 1998, substantially all of the Fund's net
assets consist of securities of issuers which are denominated in foreign
currencies. Changes in currency exchange rates will affect the value of and
investment income from such securities.
As of October 31, 1998 CVEF invested approximately 25.7% of its net assets in
issuers in the United Kingdom; CVLAEF invested approximately 32.1% and 33%,
respectively, of its net assets in issuers in Brazil and Mexico. The issuers'
abilities to meet their obligations may be affected by economic or political
developments in the specific region or country.
Substantially all of CVSEAF's CVJF and CVLAEF net assets consist of securities
which are subject to greater price volatility, limited capitalization and
liquidity, and higher rates of inflation than securities of companies based in
the United States. In addition, certain securities may be subject to
substantial governmental involvement in the economy and social, economic and
political uncertainty.
9. Retirement Plans -- The Funds have adopted an unfunded noncontributory
defined benefit pension plan covering all independent trustees of the Funds who
will have served as independent trustees for at least five years at the time of
retirement. Benefits under this plan are based on compensation and years of
service. Pension expenses for the year ended October 31, 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>
Pension Accrued Pension
Expenses Liability
Fund: ---------- ----------------
<S> <C> <C>
CVEF ............ $245 $1,066
CVSEAF .......... 140 577
CVJF ............ 96 343
CVLAEF .......... 86 173
CVIEF ........... 234 1,066
</TABLE>
57
<PAGE>
<TABLE>
<CAPTION>
Chase Vista Funds
Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------------
European Fund
---------------------------------------------------------------------------
Class A Class B
------------------------------------ --------------------------------------
Year Ended 11/02/95* Year Ended 11/03/95**
------------------------ Through ------------------------- Through
10/31/98 10/31/97 10/31/96 10/31/98 10/31/97 10/31/96
------------ ----------- ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ............. $ 14.10 $ 11.99 $ 10.00 $ 13.93 $ 11.93 $ 9.97
------- ------- -------- -------- -------- --------
Income from Investment Operations:
Net Investment Income .......................... 0.148 0.048 0.146 0.078 0.047 0.066
Net Gains or (Losses) in Securities (both
realized and unrealized) ...................... 2.160 3.014 1.929 2.098 2.888 1.961
-------- -------- --------- --------- --------- ---------
Total from Investment Operations ............... 2.308 3.062 2.075 2.176 2.935 2.027
-------- -------- --------- --------- --------- ---------
Less Distributions:
Dividends from Net Investment Income ............ 0.220 0.102 0.085 0.148 0.084 0.067
Distributions from Realized Gains ............... 1.718 0.850 -- 1.718 0.850 --
Tax return of capital ........................... -- -- -- -- -- --
-------- -------- --------- --------- --------- ---------
Total Distributions .............................. 1.938 0.952 0.085 1.866 0.934 0.067
-------- -------- --------- --------- --------- ---------
Net Asset Value, End of Period ................... $ 14.47 $ 14.10 $ 11.99 $ 14.24 $ 13.93 $ 11.93
======== ======== ========= ========= ========= =========
Total Return (1) 18.71% 28.19% 20.78% 17.89% 27.25% 20.35%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ......... $33,743 $12,965 $ 6,358 $ 9,457 $ 2,218 $ 190
Ratios to Average Net Assets # :
Ratio of Expenses ............................... 1.74% 1.75% 1.75% 2.50% 2.51% 2.47%
Ratio of Net Investment Income .................. (0.07%) 0.32% 1.44% (0.75%) (0.30%) 0.80%
Ratio of Expenses Without Waivers and
Assumption of Expenses ......................... 2.38% 2.84% 3.49% 2.91% 3.58% 3.83%
Ratio of Net Investment Income Without
Waivers and Assumptions ........................ (0.71%) (0.77%) (0.30%) (1.16%) (1.37%) (0.56%)
Portfolio Turnover Rate .......................... 183% 170% 186% 183% 170% 186%
<CAPTION>
Chase Vista Funds
Financial Highlights
- ----------------------------------------------------------------------------------------------------------------------------------
Southeast Asian Fund
-------------------------------------------------------------------------------
Class A Class B
--------------------------------------- ---------------------------------------
Year Ended 11/02/95* Year Ended 11/03/95**
--------------------------- Through --------------------------- Through
10/31/98 10/31/97 10/31/96 10/31/98 10/31/97 10/31/96
------------- ------------- ----------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ............. $ 8.07 $ 11.97 $ 10.00 $ 7.95 $ 11.89 $ 10.01
--------- --------- -------- --------- --------- --------
Income from Investment Operations:
Net Investment Income .......................... 0.066 0.066 (0.013) (0.015) 0.025 (0.055)
Net Gains or (Losses) in Securities (both
realized and unrealized) ...................... (1.992) (3.305) 1.983 (1.930) (3.315) 1.935
---------- ---------- --------- --------- ---------- ---------
Total from Investment Operations ............... (1.926) (3.239) 1.970 (1.945) (3.290) 1.880
---------- ---------- --------- --------- ---------- ---------
Less Distributions:
Dividends from Net Investment Income ............ -- -- -- -- -- --
Distributions from Realized Gains ............... -- 0.640 -- -- 0.640 --
Tax return of capital ........................... 0.054 0.021 -- 0.025 0.010 --
---------- ---------- --------- ---------- ---------- ---------
Total Distributions .............................. 0.054 0.661 -- 0.025 0.650 --
---------- ---------- --------- ---------- ---------- ---------
Net Asset Value, End of Period ................... $ 6.09 $ 8.07 $ 11.97 $ 5.98 $ 7.95 $ 11.89
========== ========== ========= ========== ========== =========
Total Return (1) (23.85%) (28.86%) 19.70% (24.45%) (29.48) 18.78%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ......... $ 3,089 $ 6,566 $ 8,451 $ 816 $ 1,051 $ 1,222
Ratios to Average Net Assets # :
Ratio of Expenses ............................... 1.76% 1.75% 1.74% 2.51% 2.50% 2.52%
Ratio of Net Investment Income .................. 0.82% 0.42% (0.12%) (0.16%) (0.23%) (0.90%)
Ratio of Expenses Without Waivers and
Assumption of Expenses ......................... 4.01% 2.84% 3.26% 4.77% 3.60% 3.70%
Ratio of Net Investment Income Without
Waivers and Assumptions ........................ (1.43%) (0.67%) (1.64%) (2.42%) (1.33%) (2.08%)
Portfolio Turnover Rate .......................... 316% 234% 149% 316% 234% 149%
</TABLE>
- -------
(1) Total return figures do not include the effect of any sales load.
* Commencement of operations.
** Commencement of offering of class of shares.
# Short periods have been annualized.
See notes to financial statements.
58
<PAGE>
<TABLE>
<CAPTION>
Chase Vista Funds
Financial Highlights (continued)
- ------------------------------------------------------------------------------------------------------------------------
Japan Fund
----------------------------------------------------
Class A Class B
-------------------------------------- -------------
Year Ended 11/02/95* Year Ended
-------------------------- Through -------------
10/31/98 10/31/97 10/31/96 10/31/98
------------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period .............................. $ 9.52 $ 9.42 $ 10.00 $ 9.42
--------- -------- -------- ---------
Income from Investment Operations:
Net Investment Income ........................................... 0.268 0.078 ( 0.083) 0.226
Net Gains or (Losses) in Securities (both realized and
unrealized) .................................................... (2.903) 0.242 (0.497) (2.897)
---------- --------- -------- ----------
Total from Investment Operations ................................ (2.635) 0.320 (0.580) (2.671)
---------- --------- -------- ----------
Less Distributions:
Dividends from Net Investment Income ............................. 0.263 0.220 -- 0.221
Distributions from Realized Gains ................................ -- -- -- --
Tax return of capital ............................................ 0.208 -- -- 0.208
---------- --------- -------- ----------
Total Distributions ............................................... 0.471 0.220 -- 0.429
---------- --------- -------- ----------
Net Asset Value, End of Period .................................... $ 6.41 $ 9.52 $ 9.42 $ 6.32
========== ========= ======== ==========
Total Return (1) (28.98%) 3.49% (5.80%) (29.53%)
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .......................... $ 1,770 $ 5,008 $ 4,781 $ 391
Ratios to Average Net Assets # :
Ratio of Expenses ................................................ 1.76% 1.75% 1.75% 2.51%
Ratio of Net Investment Income ................................... (0.56%) (0.30%) (0.91%) (0.97%)
Ratio of Expenses Without Waivers and Assumption of Expenses ..... 3.79% 2.89% 3.60% 4.52%
Ratio of Net Investment Income Without Waivers and
Assumptions of Expenses ......................................... (2.59%) (1.44%) (2.76%) (2.98%)
Portfolio Turnover Rate ........................................... 212% 217% 121% 212%
<CAPTION>
Chase Vista Funds
Financial Highlights (continued)
- ----------------------------------------------------------------------------------------------------------------------------------
Japan Fund Latin American Equity Fund
------------------------- --------------------------
Class B Class A Class B
------------------------- ------------- -------------
Year Ended 11/03/95**
------------ Through
10/31/97 10/31/96 10/31/98 10/31/98
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period .............................. $ 9.35 $ 10.00 $ 10.00 $ 10.17
-------- -------- --------- ---------
Income from Investment Operations:
Net Investment Income ........................................... (0.048) (0.022) 0.186 0.141
Net Gains or (Losses) in Securities (both realized and
unrealized) .................................................... 0.298 (0.628) (4.471) (4.630)
-------- -------- ---------- ---------
Total from Investment Operations ................................ 0.250 (0.650) (4.285) (4.489)
-------- -------- ---------- ---------
Less Distributions:
Dividends from Net Investment Income ............................. 0.180 -- 0.141 0.127
Distributions from Realized Gains ................................ -- -- -- --
Tax return of capital ............................................ -- -- 0.024 0.024
-------- -------- ---------- ---------
Total Distributions ............................................... 0.180 -- 0.165 0.151
-------- -------- ---------- ---------
Net Asset Value, End of Period .................................... $ 9.42 $ 9.35 $ 5.55 $ 5.53
======== ======== ========== =========
Total Return (1) 2.72% (6.50%) (43.34%) (44.59%)
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .......................... $ 1,893 $ 162 $ 6,302 $ 42
Ratios to Average Net Assets # :
Ratio of Expenses ................................................ 2.51% 2.52% 1.75% 2.53%
Ratio of Net Investment Income ................................... (5.73%) (0.40%) 2.78% (0.21%)
Ratio of Expenses Without Waivers and Assumption of Expenses ..... 3.66% 4.00% 3.80% 4.35%
Ratio of Net Investment Income Without Waivers and
Assumptions of Expenses ......................................... (6.88%) (1.88%) 0.73% (2.03%)
Portfolio Turnover Rate ........................................... 217% 121% 90% 90%
</TABLE>
- -------
(1) Total return figures do not include the effect of any sales load.
* Commencement of operations.
** Commencement of offering of class of shares.
# Short periods have been annualized.
See notes to financial statements.
59
<PAGE>
<TABLE>
<CAPTION>
Chase Vista Funds
Financial Highlights (continued)
- --------------------------------------------------------------------------------------------------------------------------
International Equity Fund
-----------------------------------------------------------------
Class A
-----------------------------------------------------------------
Year Ended
-----------------------------------------------------------------
10/31/98 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 ................... $ 12.11 $ 12.38 $ 12.02 $ 12.31 $ 11.82
------- --------- ------- ------- -------
Income from Investment Operations:
Net Investment Income ................................ (0.090) (0.046)@ 0.056 0.039 (0.022)
Net Gains or (Losses) in Securities (both realized
and unrealized) ..................................... 0.43 0.330 0.367 (0.190) 0.566
------- --------- -------- ------- -------
Total from Investment Operations ..................... 0.34 0.284 0.423 (0.151) 0.544
------- --------- -------- ------- -------
Less Distributions:
Dividends from Net Investment Income .................. 0.070 0.036 0.063 -- --
Distributions from Realized Gains ..................... 0.301 0.520 -- 0.137 0.054
------- --------- -------- ------- -------
Total Distributions .................................... 0.371 0.556 0.063 0.137 0.054
------- --------- -------- ------- -------
Net Asset Value, End of Period ......................... $ 12.08 $ 12.11 $ 12.38 $ 12.02 $ 12.31
======= ========= ======== ======= =======
Total Return (1) 2.96% 2.27% 3.53% (1.19%) 4.61%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ............... $17,969 $ 23,267 $ 24,904 $26,287 $37,926
Ratios to Average Net Assets # :
Ratio of Expenses ..................................... 2.00% 2.01% 2.00% 2.01% 2.00%
Ratio of Net Investment Income ........................ (0.47%) (0.36%) (0.03%) (0.10%) (0.27%)
Ratio of Expenses Without Waivers and Assumption
of Expenses ........................................... 3.39% 2.08% 2.86% 2.86% 2.86%
Ratio of Net Investment Income Without Waivers
and Assumptions of Expenses ........................... (1.86%) (0.43%) (0.89%) (0.95%) (1.13%)
<CAPTION>
Chase Vista Funds
Financial Highlights (continued)
- -------------------------------------------------------------------------------------------------------------------------------
International Equity Fund
----------------------------------------------------------------------
Class B
----------------------------------------------------------------------
Year Ended
---------------------------------------------------- 11/04/93**
10/31/98 10/31/97 10/31/96 10/31/95 Through 10/31/94
------------ ------------- ------------ ------------ -----------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ................... $ 11.94 $ 12.24 $ 11.89 $ 12.23 $ 11.69
-------- --------- -------- -------- --------
Income from Investment Operations:
Net Investment Income ................................ (0.130) (0.111)@ 0.013 (0.026) (0.053)
Net Gains or (Losses) in Securities (both realized
and unrealized) ..................................... 0.42 0.330 0.350 (0.180) 0.647
-------- --------- -------- -------- --------
Total from Investment Operations ..................... 0.29 0.219 0.363 (0.206) 0.594
-------- --------- -------- -------- --------
Less Distributions:
Dividends from Net Investment Income .................. 0.010 -- -- -- --
Distributions from Realized Gains ..................... 0.301 0.520 0.010 0.137 0.054
-------- --------- -------- -------- --------
Total Distributions .................................... 0.311 0.520 0.010 0.137 0.054
-------- --------- -------- -------- --------
Net Asset Value, End of Period ......................... $ 11.92 $ 11.94 $ 12.24 $ 11.89 $ 12.23
======== ========= ======== ======== ========
Total Return (1) 2.56% 1.74% 3.03% (1.61%) 5.09%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ............... $ 7,433 $ 7,989 $ 7,819 $ 6,759 $ 7,182
Ratios to Average Net Assets # :
Ratio of Expenses ..................................... 2.50% 2.51% 2.50% 2.50% 2.50%
Ratio of Net Investment Income ........................ (0.94%) (0.88%) (0.43%) (0.53%) (0.94%)
Ratio of Expenses Without Waivers and Assumption
of Expenses ........................................... 3.90% 2.61% 3.36% 3.36% 3.36%
Ratio of Net Investment Income Without Waivers
and Assumptions of Expenses ........................... (2.34%) (0.98%) (1.29%) (1.39%) (1.80%)
</TABLE>
- -------
(1) Total return figures do not include the effect of any sales load.
** Commencement of offering of class of shares.
# Short periods have been annualized.
@ Calculated using average shares outstanding.
See notes to financial statements.
60
<PAGE>
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of
Mutual Fund Group
In our opinion, the accompanying statement of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Chase Vista European Fund, Chase
Vista Southeast Asian Fund, Chase Vista Japan Fund, Chase Vista Latin American
Equity Fund, and Chase Vista International Equity Fund (separate portfolios of
Mutual Fund Group, hereafter referred to as the "Trust") at October 31, 1998,
the results of each of their operations for the year then ended (for the period
December 1, 1997 (commencement of operations) through October 31, 1998 for Chase
Vista Latin American Equity Fund), the changes in each of their net assets for
each of the two years in the period then ended (for the period December 1, 1997
through October 31, 1998 for Chase Vista Latin American Equity Fund) and the
financial highlights for each of the periods presented, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31, 1998 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
December 15, 1998
61
<PAGE>
International Equity Portfolio
Portfolio of Investments October 31, 1998
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ----------------------------------------------------------------
Long Term Investments -- 76.9%
- ----------------------------------------------------------------
<S> <C> <C>
Common Stock -- 76.1%
------------------------------------
Australia -- 0.4%
Diversified -- 0.2%
13,100 Lang Corp., LTD $ 19,270
6,000 Southcorp LTD 19,129
-----------
38,399
-----------
Financial Services -- 0.0%
102,000 FXF Trust* 12,127
Food/Beverage Products -- 0.1%
12,000 Foster's Brewing Group LTD 29,510
Metals/Mining -- 0.0%
800 Soul Pattinson & Company LTD,
(Washington H.) 12,014
Multi-Media -- 0.1%
4,000 Publishing & Broadcasting LTD 15,894
-----------
Total Australia 107,944
-----------
Austria -- 0.5%
Oil & Gas -- 0.5%
1,973 Schoeller-Bleckmann Oilfield
Equipment AG 130,410
-----------
Brazil -- 0.8%
Telecommunications -- 0.8%
2,700 Telecomunicacoes Brasileiras SA
Sponsored ADR, Preferred Block* 205,200
Utilities -- 0.0%
500 Centrais Geradoras do Sul do Brazil
SA, ADR* 2,829
-----------
Total Brazil 208,029
-----------
Finland -- 2.1%
Food/Beverage Products -- 0.3%
5,866 Raisio Group PLC 78,850
Telecommunications -- 1.8%
5,065 Nokia OYJ, A Shares 461,597
-----------
Total Finland 540,447
-----------
France -- 10.0%
Appliances & Household Durables -- 0.6%
9,553 Moulinex* 161,979
</TABLE>
See notes to financial statements.
62
<PAGE>
International Equity Portfolio
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- --------------------------------------------------------------
Long Term Investments -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
Automotive -- 1.6%
1,975 Equipments et Composants pour
l'Industries Automobile $ 375,050
Banking -- 1.0%
3,760 Credit Commercial de France 264,085
Computer Software/Services -- 1.4%
2,373 Cap Gemini Sogeti SA 356,659
Diversified -- 1.9%
12,118 Lagardere SA 487,721
Entertainment/Leisure -- 0.0%
390 Parc Asterix, SA 9,821
Insurance -- 0.7%
5,560 CNP Assurances 189,050
Oil & Gas -- 2.5%
2,820 Elf Aquitaine SA 326,384
2,680 Total SA, B Shares 309,216
-----------
635,600
-----------
Retailing -- 0.3%
369 Castorama Dubois Investisse 65,822
-----------
Total France 2,545,787
-----------
Germany -- 10.4%
Automotive -- 0.8%
9,670 Kolbenschmidt Pierburg AG 203,198
Banking -- 1.0%
6,652 BHF-Bank AG 256,062
Capital Goods -- 0.7%
1,900 Mannesmann AG 187,006
Food/Beverage Products -- 2.2%
12,349 Kamps AG* 560,742
Insurance -- 2.6%
900 Allianz AG, Vinkulierte Registered
Shares 308,677
703 Muenchener Rueckversicherungs-
Gesellschaft AG* 321,764
56 Muenchener Rueckversicherungs-
Gesellschaft AG, New Shares* 25,496
-----------
655,937
-----------
</TABLE>
See notes to financial statements.
63
<PAGE>
International Equity Portfolio
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------------
Long Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
Pharmaceuticals -- 0.4%
1,200 Gehe AG $ 90,212
Telecommunications -- 2.7%
2,400 MobilCom AG 702,059
-----------
Total Germany 2,655,216
-----------
Greece -- 0.2%
Telecommunications -- 0.2%
2,211 STET Hellas Telecommunications SA
ADR* 58,039
-----------
Ireland -- 2.0%
Banking -- 0.5%
7,500 Bank of Ireland 137,139
Computer Software/Services -- 0.4%
3,888 IONA Technologies PLC, ADR* 103,032
Real Estate -- 0.4%
20,733 Green Property PLC 104,102
Telecommunications -- 0.7%
5,824 Esat Telecom Group PLC, ADR* 176,176
-----------
Total Ireland 520,449
-----------
Italy -- 5.3%
Banking -- 0.5%
9,094 Istituto Bancario San Paolo di Torino 134,983
Printing & Publishing -- 2.2%
72,665 Poligrafici Editoriale SPA 151,549
488,300 Seat Pagine Gialle SPA* 401,220
-----------
552,769
-----------
Telecommunications -- 2.6%
275,000 Olivetti Group SPA* 676,165
-----------
Total Italy 1,363,917
-----------
Japan -- 8.5%
Consumer Products/Services -- 2.5%
11 Japan Tobacco, Inc. 92,300
9,000 KAO Corp. 182,419
1,600 Nintendo Company LTD 136,042
2,000 Secom Co., LTD 148,581
1,800 Uni-Charm Corp. 81,934
-----------
641,276
-----------
</TABLE>
See notes to financial statements.
64
<PAGE>
International Equity Portfolio
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- --------------------------------------------------------------------
Long Term Investments -- (continued)
- --------------------------------------------------------------------
<S> <C> <C>
Electronics/Electrical Equipment -- 2.2%
4,000 Hosiden Corp. $ 65,272
3,800 Mabuchi Motor 248,035
4,000 Mitsumi Electric Company LTD 71,456
5,000 Murata Manufacturing Co., LTD 168,764
----------
553,527
----------
Food/Beverage Products -- 0.3%
4,000 Nissin Food Products, Co., LTD 79,529
Health Care/Health Care Services -- 0.8%
6,000 Takeda Chemical Industries 195,302
Manufacturing -- 0.2%
2,000 Fuji Machine Manufacturing Co., LTD 58,917
Oil & Gas -- 0.5%
37,000 Osaka Gas Co. 118,847
Pharmaceuticals -- 0.4%
9,000 Fujisawa Pharmaceutical Co., LTD 106,282
Photographic Equipment -- 0.7%
5,000 Fuji Photo Film 183,364
Shipping/Transportation -- 0.3%
13 East Japan Railway Co. 77,150
Telecommunications -- 0.6%
4 NTT Mobile Communication
Network, Inc. 144,630
----------
Total Japan 2,158,824
----------
Malta -- 0.9%
Telecommunications -- 0.9%
20,000 Maltacom PLC GDR 230,000
----------
Netherlands -- 4.3%
Business Services -- 1.0%
12,460 Koninklijke Ahrend Groep NV 252,680
Computer Software/Services -- 1.0%
8,100 Ordina Beheer NV* 210,637
12,000 Tas Groep NV* 54,578
----------
265,215
----------
Food/Beverage Products -- 0.7%
7,284 Laurus NV 183,169
</TABLE>
See notes to financial statements.
65
<PAGE>
International Equity Portfolio
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ----------------------------------------------------------------
Long Term Investments -- (continued)
- ----------------------------------------------------------------
<S> <C> <C>
Printing & Publishing -- 1.2%
8,500 Verenigde Nederlandse
Uitgeversbedrijvan Verenigd Bezit $ 293,809
Retailing -- 0.4%
4,230 Vendex International, NV 114,081
-----------
Total Netherlands 1,108,954
-----------
Portugal -- 2.3%
Banking -- 1.9%
15,700 Banco Comercial Portugues, SA 491,471
Construction -- 0.4%
1,800 Brisa-Auto Estradas de Portugal, SA 87,185
-----------
Total Portugal 578,656
-----------
Spain -- 3.0%
Construction -- 0.8%
6,100 ACS, Actividades de Construccion y
Servicios, SA 194,658
Consumer Products/Services -- 0.2%
4,070 Corp., Financiera Reunida, SA* 48,831
Telecommunications -- 1.4%
8,090 Telephonica de Espana 365,273
Utilities -- 0.6%
6,400 Endesa SA 161,295
-----------
Total Spain 770,057
-----------
Sweden -- 1.2%
Insurance -- 1.2%
23,570 Skandia Forsakrings AB 300,495
-----------
Switzerland -- 5.3%
Pharmaceuticals -- 4.3%
290 Novartis AG (Registered) 521,944
50 Roche Holding AG 582,725
-----------
1,104,669
-----------
Photographic Equipment -- 1.0%
813 Fotolabo SA 250,071
-----------
Total Switzerland 1,354,740
-----------
</TABLE>
See notes to financial statements.
66
<PAGE>
International Equity Portfolio
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- --------------------------------------------------------------------
Long Term Investments -- (continued)
- --------------------------------------------------------------------
<S> <C> <C>
Thailand -- 0.2%
Oil & Gas -- 0.1%
2,100 PTT Exploration and Production
Public Co., LTD (Foreign) $ 20,231
Utilities -- 0.1%
10,700 Electricity Generating Public Co.,
LTD* (Foreign) 28,246
----------
Total Thailand 48,477
----------
United Kingdom -- 18.7%
Aerospace -- 2.3%
79,712 British Aerospace PLC 598,025
Business Services -- 0.0%
6 Delphi Group PLC 27
Construction -- 0.4%
13,050 Berkeley Group PLC 111,502
Electronics/Electrical Equipment -- 1.0%
32,300 General Electric Company PLC 260,107
Entertainment/Leisure -- 0.8%
14,550 Granada Group PLC 214,870
Financial Services -- 0.1%
3,000 Legal & General Group PLC 35,549
Hotels/Other Lodging -- 0.8%
113,640 Jarvis Hotels PLC 194,003
Oil & Gas -- 4.3%
28,249 British Petroleum Co., PLC 422,923
88,864 British-Borneo Petroleum Syndicate
PLC 333,903
54,000 Shell Transport & Trading PLC 325,367
----------
1,082,193
----------
Pharmaceuticals -- 2.7%
13,930 Glaxo Wellcome PLC 432,720
19,800 SmithKline Beecham PLC 245,893
----------
678,613
----------
Printing & Publishing -- 1.4%
32,408 Jarvis Porter Group, PLC 340,093
Real Estate -- 0.1%
9,700 TBI PLC 15,504
</TABLE>
See notes to financial statements.
67
<PAGE>
International Equity Portfolio
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------------
Long Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
Telecommunications -- 3.8%
54,800 Securicor PLC $ 405,397
42,699 Vodafone Group PLC 571,008
-----------
976,405
-----------
Utilities -- 1.0%
133,034 Centrica PLC* 260,511
-----------
Total United Kingdom 4,767,402
-----------
Total Common Stock 19,447,843
(Cost $18,651,475)
-----------
Convertible Preferred Stock -- 0.0%
--------------------------------------
Malaysia -- 0.0%
Construction -- 0.0%
60,000 Sunway Building Technology, Bhd,
3.0% (RULS), Redeemable
Unsecured Loan Stock 11,763
(Cost $24,077)
-----------
Warrants -- 0.0%
--------------------------------------
Germany -- 0.0%
Insurance -- 0.0%
56 Muenchener Rueckversicherungs-
Gesellschaft AG, Expires 06/03/02 2,435
-----------
Hong Kong -- 0.0%
Diversified -- 0.0%
100 Wharf Holdings LTD, Expires 12/31/99 12
-----------
Total Warrants 2,447
(Cost $0)
-----------
</TABLE>
See notes to financial statements.
68
<PAGE>
International Equity Portfolio
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount
(Local
Currency) Issuer Value (USD)
- ----------------------------------------------------------------------
Long-Term Investments --(continued)
- ----------------------------------------------------------------------
<S> <C> <C>
Convertible Corporate Notes & Bonds -- 0.8%
-------------------------------------------
Germany -- 0.1%
Automotive -- 0.1%
8,800 Daimler Benz AG, 5.75% due
06/14/02 $ 7,170
-----------
Poland -- 0.7%
Electronics/Electrical Equipment -- 0.7%
304,000 Elektrim Spolka Akcyjna SA, 2.00%
due 05/30/04 # 188,428
-----------
Total Convertible Corporate
Notes & Bonds
(Cost $195,361) 195,598
====================================================================
Total Long Term Investments 19,657,651
(Cost $18,870,913)
====================================================================
Short Term Investments -- 7.1%
- ------------------------------
Time Deposit -- 7.1%
--------------------
(USD) Germany -- 7.1%
1,815,815 Deutsche Bank Financial 3.30% due
11/02/98 1,815,981
(Cost $1,815,981)
===================================================================
Total Investments -- 84.0% $21,473,632
(Cost $20,686,894)
===================================================================
</TABLE>
Long Futures Outstanding
- -------------------------
<TABLE>
<CAPTION>
Original Notional Unrealized
Number of Expiration Notional Value at Appreciation
Contracts Description Date Value 10/31/98 (Depreciation)
- ----------- --------------- ------------ ------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
36 SIMEX
Nikkei 225 December
Index Future 1998 $2,146,521 $2,089,322 $ (57,199)
12 IBEX 35 Plus November
Index Future 1998 $ 692,944 $ 750,618 $ 57,674
Short Futures Outstanding
- -------------------------
2 DTB DAX December
Index Future 1998 $ 517,058 $ 569,410 $ (52,352)
---------
$ (51,877)
=========
</TABLE>
See notes to financial statements.
69
<PAGE>
International Equity Portfolio
Portfolio of Investments October 31, 1998 (continued)
Index
*--Non-income producing securities.
#--Security may only be sold to institutional buyers.
ADR--American Depositary Receipt
GDR--Global Depositary Receipt
See notes to financial statements.
70
<PAGE>
International Equity Portfolio
Statement of Assets and Liabilities October 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment securities, at value (Note 1) .......... $21,473,632
Cash .............................................. 810,492
Foreign cash (Cost $2,777,308) .................... 2,758,307
Segregated Cash -- Futures Contracts .............. 621,015
Receivables:
Open forward currency contracts .................. 896,430
Investment securities sold ....................... 486,227
Interest and dividends ........................... 44,389
Other assets ...................................... 472
-----------
Total assets ................................... 27,090,964
-----------
LIABILITIES:
Payables:
Variation Margin ................................. 51,877
Investment securities purchased .................. 703,980
Open forward currency contracts .................. 667,264
Accrued liabilities: (Note 2)
Custodian ........................................ 7,358
Other ............................................ 107,928
-----------
Total Liabilities .............................. 1,538,407
-----------
NET ASSETS APPLICABLE TO INVESTORS'
BENEFICIAL INTERESTS ........................... $25,552,557
===========
Cost of Investments ...............................$20,686,894
===========
</TABLE>
See notes to financial statements.
71
<PAGE>
International Equity Portfolio
Statement of Operations For the year ended October 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividend ............................................... $ 451,625
Interest ............................................... 36,020
Foreign taxes withheld ................................. (45,266)
----------
Total investment income ............................... 442,379
----------
EXPENSES: (Note 2)
Investment Advisory fees ............................... 277,625
Administration fees .................................... 13,881
Custodian fees ......................................... 42,115
Amortization of organization costs (Note 1) ............ 11,421
Professional fees ...................................... 89,751
Trustees fees .......................................... 555
Other .................................................. 94,513
----------
Total expenses ....................................... 529,861
----------
Less amounts waived .................................... 291,506
----------
Net Expenses .......................................... 238,355
----------
Net investment income ................................ 204,024
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain (loss) on:
Investments ........................................... 1,447,618
Futures contracts ..................................... (109,992)
Foreign currency transactions ......................... (228,145)
Change in net unrealized appreciation on:
Investments .......................................... 49,633
Futures transactions ................................. (51,877)
Foreign currency contracts and transactions .......... 436,785
----------
Net realized and unrealized gain ....................... 1,544,022
----------
Net increase in net assets from operations ............. $1,748,046
==========
</TABLE>
See notes to financial statements.
72
<PAGE>
International Equity Portfolio
Statement of Changes in Net Assets For the periods indicated
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended October 31,
-----------------------------------
1998 1997
---------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income .......................... $ 204,024 $ 272,824
Net realized gain on investments ............... 1,109,481 1,200,585
Change in net unrealized appreciation on
investments futures and foreign
currency transactions ........................ 434,541 392
----------- -----------
Increase in net assets from operations ......... 1,748,046 1,473,801
----------- -----------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTEREST:
Contributions .................................. 30,176,381 21,249,908
Withdrawals .................................... (37,783,446) (23,632,110)
----------- -----------
Net decrease from transactions in
investors' beneficial interests .............. (7,607,065) (2,382,202)
----------- -----------
Net decrease in net assets ................... (5,859,019) (908,401)
NET ASSETS:
Beginning of period ............................ 31,411,576 32,319,977
----------- -----------
End of period .................................. $25,552,557 $31,411,576
=========== ===========
</TABLE>
See notes to financial statements.
73
<PAGE>
International Equity Portfolio
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies -- International Equity
Portfolio (the "Portfolio") ("IEP") is separately registered under the
Investment Company Act of 1940, as amended, as a non-diversified, open end
management investment company organized as a trust under the Laws of the State
of New York. The declaration of trust permits the Trustees to issue beneficial
interests in the Portfolio. The Portfolio commenced operations on December 29,
1992.
The following is a summary of significant accounting policies followed by
the Portfolio:
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.
Investments in international markets may involve certain considerations and
risks not typically associated with investments in the United States. Future
economic and political developments in foreign countries could adversely
affect the liquidity or value, or both, of such securities in which the
Portfolio is invested.
A. Valuation of Investments -- Equity securities, purchased options and
futures contracts are valued at the last sale price on the exchange on which
they are primarily traded, including the NASDAQ National Market. Securities
for which sale prices are not available and other over-the-counter
securities are valued at the last quoted bid price. Bonds and other fixed
income securities (other than short-term obligations), including listed
issues, are valued on the basis of valuations supplied by pricing services
or by matrix pricing systems of a major dealer in bonds. Short-term debt
securities with 61 days or more to maturity at time of purchase are valued,
through the 61st day prior to maturity, at market value based on quotations
obtained from market makers or other appropriate sources; thereafter, the
value on the 61st day is amortized on a straight-line basis over the
remaining number of days to maturity. Short-term investments with 60 days or
less to maturity at time of purchase are valued at amortized cost, which
approximates market. Portfolio securities for which there are no such
quotations or valuations are valued at fair value as determined in good
faith by or at the direction of the Trustees.
B. Repurchase Agreements -- It is the Trust's policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government Agency
securities. All collateral is held by the 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 Trusts
may be delayed or limited.
C. Forward Foreign Currency Exchange Contracts -- The Portfolio may enter
into forward foreign currency contracts (obligations to purchase or sell
foreign currency in the future on a date and price fixed at the time the
contracts are entered into) to hedge the Portfolio against fluctuations in
the value of its assets or liabilities due to change in the value of foreign
currencies. Each day the forward contract is open, changes in the value of
the contract are recognized as unrealized gains or losses by "marking to
market". When the forward contract is closed, or the delivery of the
currency is made or taken, the Fund records a realized gain or loss equal to
the difference between the proceeds from (or cost of) the closing
transaction and the Fund's basis in the contract. The Portfolio is subject
to off-balance sheet risk to the extent of the value of the contracts for
purchases of foreign currency and in an unlimited amount for sales of
foreign currency.
D. Foreign Currency Translation -- The books and records of the Portfolio
are maintained in U.S. dollars. Foreign currency amounts are translated into
U.S. dollars
74
<PAGE>
International Equity Portfolio
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
at the prevailing exchange rates, or at the mean of the current bid and
asked prices, of such currencies against the U.S. dollar as quoted by a
major bank, on the following basis:
1. Market value of investment securities and other assets and
liabilities: at the rate of exchange at the balance sheet date.
2. Purchases and sales of investment securities, income and expenses: at
the rates of exchange prevailing on the respective dates of such
transactions.
Although the net assets of the Portfolio are presented at the foreign
exchange rates and market values at the close of the periods, the Portfolio
does not isolate that portion of the results of operations arising as a
result of changes in the foreign exchange rates from the fluctuations
arising from changes in the market prices of securities sold during the
year. Accordingly, such realized foreign currency gains (losses) are
included in the reported net realized losses on security transactions.
Reported realized foreign exchange gains or losses arise from disposition of
foreign currency, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on
the Portfolio's books on the transaction date and the U.S. dollar equivalent
of the amounts actually received or paid. Unrealized foreign exchange gains
and losses arise from changes (due to the changes in the exchange rate) in
the value of foreign currency and other assets and liabilities denominated
in foreign currencies which are held at period end.
E. Futures Contracts -- When the Portfolio enters into a futures contract,
it makes an initial margin deposit in a segregated account, either in cash
or liquid securities. Thereafter, the futures contract is marked to market
and the Portfolio makes (or receives) additional cash payments daily to the
broker. Changes in the value of the contract are recorded as unrealized
appreciation/depreciation until the contract is closed or settled.
Index futures contracts are used to control the asset mix of the Portfolio
in the most efficient manner, allowing the Portfolio to adjust country
exposures while incurring minimal transaction costs. Short index futures
contracts are used for hedging purposes, i.e. to reduce the exposure to
equities. Long index futures contracts are used to gain exposure to
equities, when it is anticipated that this will be more efficient than
buying stocks directly.
Use of long futures contracts subjects the Portfolio to risk of loss up to
the nominal value of the contract, use of short futures contracts subjects
the Portfolio to unlimited losses.
The Portfolio may enter into futures contracts only on exchanges or boards
of trade. The exchange or board of trade acts as the counterparty to each
futures transaction, therefore, the Fund's credit risk is limited to failure
of the exchange or board of trade.
As of October 31, 1998, the Portfolio had outstanding futures contracts as
described in the Portfolio of Investments.
F. 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.
G. Federal Income Taxes -- The Portfolio intends to continue to qualify as a
partnership and therefore net income and net realized gains are taxed to the
partners. Accordingly, no tax provision is recorded by the Portfolio. The
investors in the Portfolio must take into account their proportionate share
of the Portfolio's income, gains, losses, deductions, credits and tax
preference items in computing their federal
75
<PAGE>
International Equity Portfolio
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
income tax liability, without regard to whether they have received any cash
distributions from the Portfolio. The Portfolio does not intend to
distribute to investors its net investment income or its net realized gains,
if any. It is intended that the Portfolio will be managed in such a way that
investors in the Portfolio will be able to satisfy the requirements of
subchapter M of the Internal Revenue Code to be taxed as regulated
investment companies.
2. Fees and Other Transactions with Affiliates
A. Investment Advisory Fee -- Pursuant to an Investment Advisory Agreement,
The Chase Manhattan Bank ("Chase" or the "Advisor") acts as the Investment
Advisor to the Portfolio. Chase is a direct wholly-owned subsidiary of The
Chase Manhattan Corporation. As Investment Advisor, Chase supervises the
investments of the Portfolio and for such services is paid a fee. The fee is
computed daily and paid monthly at an annual rate equal to 1.00% of the
Portfolio's average daily net assets. For the year ended October 31, 1998,
the Advisor voluntarily waived all of its fees for the Portfolio.
Chase Asset Management, Inc. ("CAM"), a registered investment advisor, is
the sub-investment advisor to the Portfolio pursuant to a Sub-Investment
Advisory Agreement between CAM and Chase. CAM is a wholly owned subsidiary
of Chase and is entitled to receive a fee, payable by Chase from its
advisory fee, at an annual rate equal to 0.50% of the Portfolio's average
daily net assets.
B. Custodial Fees -- Chase, as Custodian, provides safekeeping services for
the Portfolio's securities. Compensation for such services are presented in
the Statement of Operations as custodian fees.
C. Administration Fee -- Pursuant to an Administration Agreement, Chase (the
"Administrator") provides certain administration services to the Portfolio.
For these services and facilities, the Administrator receives from the
Portfolio a fee computed at the annual rate equal to 0.05% of the
Portfolio's average daily net assets. For the year ended October 31, 1998,
the Administrator voluntarily waived all of its fees for the Portfolio.
3. Investment Transactions -- For the year ended October 31, 1998, purchases
and sales of investments (excluding short-term investments) were as follows:
<TABLE>
<S> <C>
Purchases (excluding U.S. Government) ......... $30,176,381
Sales (excluding U.S. Government) ............. 37,783,446
</TABLE>
The portfolio turnover rate of IEP for the year ended October 31, 1998, was
182.47%.
76
<PAGE>
International Equity Portfolio
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
4. Open Forward Foreign Currency Contracts -- The following forward foreign
currency contracts were open at October 31, 1998.
<TABLE>
<CAPTION>
Contract Contract Unrealized
Amount Amount Settlement Gain (Loss)
Purchased/(Sold) Sold/(Purchased) Date (USD)
- ------------------------ --------------------------- ------------ ---------------
<S> <C> <C> <C> <C>
Unrealized Gain
- ----------------------
156,000,000 (JPY) 722,105 (GBP) 12/09/98 $ 141,759
118,500,000 (JPY) 592,382 (GBP) 12/09/98 34,430
234,000,000 (JPY) 2,931,596 (DEM) 12/10/98 248,292
692,000 (GBP) 1,882,599,840 (ITL) 11/10/98 9,091
3,112,010,000 (ITL) 1,100,000 (GBP) 11/10/98 58,408
62,500,000 (JPY) 463,375 (USD) 11/10/98 74,248
263,202,500 (JPY) 1933,855 (USD) 11/10/98 330,202
---------
$ 896,430
=========
Unrealized Loss
- ------------------------
346,667 (GBP) 78,000,000 (JPY) 12/09/98 $ (94,906)
(1,410,000) (HKD) (182,029) (USD) 11/03/98 (2)
1,984,670 (DEM) 156,000,000 (JPY) 12/10/98 (147,212)
991,824 (DEM) 78,000,000 (JPY) 12/10/98 (73,915)
2,440,742 (DEM) 885,000 (GBP) 12/10/98 (1,281)
3,688,740 (DEM) 1,350,000 (GBP) 12/11/98 (22,571)
408,000 (GBP) 1,142,440,800 (ITL) 11/10/98 (14,446)
(325,702,500) (JPY) (2,488,748) (USD) 11/10/98 (312,931)
----------
$ (667,264)
==========
</TABLE>
- --------------
DEM--German Deutsche Mark
GBP--Great British Pound
HKD--Hong Kong Dollar
ITL--Italian Lira
JPY--Japanese Yen
THB--Thai Baht
USD--United States Dollar
5. Retirement Plan -- The Portfolio has adopted an unfunded noncontributory
defined benefit pension plan covering all independent trustees of the Portfolio
who will have served as independent trustees for at least five years at the
time of retirement. Benefits under this plan are based on compensation and
years of service. Pension expenses for the year ended October 31, 1998,
included in Trustees Fees in the Statement of Operations, and accrued pension
liability included in other accrued liabilities, in the Statement of Assets and
Liabilities were $236 and $1,069, respectively.
77
<PAGE>
International Equity Portfolio
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
6. Foreign Cash Positions
<TABLE>
<CAPTION>
Net
Market Unrealized
Local Cost Value Gain (Loss)
Currency Currency (USD) (USD) (USD)
- --------------------------------- -------------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Australian Dollar ............... 45,127 $ 3,791 $ 3,875 $ 84
Austrian Schilling .............. 828 510 519 9
Belgian Franc ................... 5,822 172 170 (2)
British Pound Sterling .......... 322,540 550,068 539,835 (10,233)
Deutsche Mark ................... 2,056,048 1,243,406 1,241,500 (1,906)
Finnish Markka .................. 4,919 989 977 (12)
French Franc .................... 186,486 33,624 33,567 (57)
Greek Drachma ................... 4,250 13 15 2
Hong Kong Dollar ................ 1,413,340 182,460 182,484 24
Indonesian Rupiah ............... 961,005 282 126 (156)
Irish Punt ...................... 734 1,076 1,103 27
Italian Lira .................... 622,481,318 388,421 379,712 (8,709)
Japanese Yen .................... 580,397 5,060 4,985 (75)
New Mexican Peso ................ 949,585 90,594 93,972 3,378
Netherlands Guilder ............. 126,259 67,784 67,558 (226)
Philippine Peso ................. 154,056 3,566 3,818 252
Portuguese Escudo ............... 468,635 2,724 2,758 34
Singapore Dollar ................ 68,892 42,400 42,330 (70)
Swedish Krona ................... 85,903 11,096 11,007 (89)
Swiss Franc ..................... 160,862 119,387 118,656 (731)
Spanish Peseta .................. 4,115,920 29,772 29,220 (552)
Thai Baht ....................... 4,382 113 120 7
---------- ---------- ----------
$2,777,308 $2,758,307 $(19,001)
========== ========== ==========
</TABLE>
7. Bank Borrowings -- The Portfolio may borrow money for temporary or emergency
purposes. Any borrowings representing more than 5% of the Portfolio's total
assets must be repaid before the Portfolio may make additional investments. The
Portfolio has entered into an agreement, enabling it to participate with other
Chase Vista Funds in an unsecured line of credit with a syndicate of banks,
which permits borrowings up to $350 million, collectively. Interest is charged
to the Portfolio based on its borrowings at an annual rate equal to the sum of
the Federal Funds Rate plus 0.35%. The Portfolio also pays a commitment fee of
0.055% per annum on the average daily amount of the available commitment, which
is allocated, on a pro-rata basis to the Portfolio. The commitment fee is
included in Other expenses on the Statement of Operations. Borrowings are
payable on demand.
The Portfolio had no borrowings outstanding at October 31, 1998, nor at any
time during the year.
78
<PAGE>
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of
International Equity Portfolio
In our opinion the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets present fairly, in all material respects, the financial
position of International Equity Portfolio (the "Portfolio") at October 31,
1998, the results of its operations for the year then ended and the changes in
its net assets for each of the two years in the period then ended, in
conformity with generally accepted accounting principles. These financial
statements are the responsibility of the Portfolio's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation of
securities at October 31, 1998 by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
December 15, 1998
79
<PAGE>
Chase Vista European Fund Unaudited
Chase Vista Southeast Asian Fund
Chase Vista Japan Fund
Chase Vista Latin American Fund
Chase Vista International Equity Fund
- --------------------------------------------------------------------------------
Certain tax information regarding the Chase Vista Mutual Funds is required to
be provided to shareholders based upon the Funds' income and distributions
for the taxable year ended October 31, 1998. The information and distributions
reported in this letter may differ from the information and distributions
taxable reported to the shareholders for the calendar year ending December 31,
1998. The information necessary to complete your income tax returns for the
calendar year ending December 31, 1998 will be received under separate cover.
FOR THE FISCAL YEAR ENDED OCTOBER 31, 1998.
The following represents the source and percentage of income earned from
government obligations by the Funds:
<TABLE>
<CAPTION>
Long-Term
Capital Gains
Federal Home Loan Federal Mortgage Distributions Per
Chase Vista Fund U.S. Treasury Obligations Bank Corporation Share
- ----------------------- --------------------------- ------------------- ------------------ ------------------
<S> <C> <C> <C> <C>
European -- -- -- $0.45
Southeast Asian -- -- -- --
Japan -- -- -- --
Latin American Equity -- 9.48% 0.36% --
International Equity 0.12% -- -- $0.30
</TABLE>
See notes to financial statements.
80
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<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
PricewaterhouseCoopers 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.
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.
<PAGE>
(C) The Chase Manhattan Bank, 1998, 1999. December 1998
Chase Vista Funds
Fulfillment Center
393 Manley Street
West Bridgewater, MA 02379-1039
