[SIDEBAR TEXT]
CHASE VISTA EQUITY FUNDS
[END SIDEBAR TEXT]
[CHASE VISTA FUNDS (SM) LOGO]
ANNUAL
REPORT
------------------------
Chase Vista(SM). Make the Powerful Connection.
CHASE VISTA SMALL CAP EQUITY FUND
CHASE VISTA LARGE CAP EQUITY FUND
CHASE VISTA BALANCED FUND
October 31, 1998
ANEQ1-2-1298
<PAGE>
Highlights
U.S. equity markets advanced despite significant market volatility during the
period, and the bond market enjoyed strong performance thanks to falling
interest rates.
[bullet] The economic and currency crisis in southeast Asia and the global
liquidity crisis ignited by Russia's financial problems were largely
responsible for the stock market's wide price fluctuations and the
decline in interest rates.
[bullet] Economic conditions were generally good, with inflation benign,
consumer confidence high and unemployment low.
[bullet] Large cap stocks continued to outperform small- and medium-cap stocks,
though secondary issues showed signs of strength late in the period.
CONTENTS
<TABLE>
<S> <C>
Chairman's Letter 3
Chase Vista Small Cap Equity Fund
Fund Commentary [bullet] Portfolio of Investments 4
Chase Vista Large Cap Equity Fund
Fund Commentary [bullet] Portfolio of Investments 15
Chase Vista Balanced Fund
Fund Commentary [bullet] Portfolio of Investments 25
Financial Statements 40
Notes to Financial Statements 43
Financial Highlights 50
</TABLE>
- --------------------------------------------------------------------------------
Investments in the funds are not deposits of, or guaranteed or endorsed by, The
Chase Manhattan Bank, and the shares are not insured by the FDIC, Federal
Reserve Board or any other government agency. Investments in mutual funds
involve risk, including possible loss of the principal amount invested.
- --------------------------------------------------------------------------------
<PAGE>
Chase Vista Funds
Chairman's Letter
December 1, 1998
Dear Shareholder:
We are pleased to present this annual report for the following Chase Vista U.S.
Equity Funds for the one-year period ended October 31, 1998:
[bullet] Small Cap Equity Fund
[bullet] Large Cap Equity Fund
[bullet] Balanced Fund
Stocks Survive Volatility to Post Healthy Advance
The stock market registered good investment results thanks to generally
favorable economic conditions, heavy cash flows into mutual funds and subdued
inflation. But the stock market's performance was not without some fits and
starts along the way.
Early in the period, equities retreated due to the impact of the Asian economic
crisis. By the end of 1997, however, the market rallied as concerns over the
crisis began to fade. Worried that stocks could not continue to perform well
following the best consecutive three-year performance period in stock market
history, stocks retreated in January. In February, the market bounced back and
held up fairly well until Asia's problems resurfaced in the spring. While stocks
survived the second round of the Asian crisis, it could not hold up under the
pressure of Russia's financial problems, which surfaced in July. Over the
following month and a half, the market suffered its sharpest pullback in eight
years. In the fall, stocks soared, thanks to two Federal Reserve interest rate
cuts--one on September 29 and another on October 15. In the final two weeks of
the period, small cap stocks, in particular, were among the market's best
performers.
Bonds Rally As Interest Rates Fall
Bonds posted solid gains as long-term interest rates, as measured by the
benchmark 30-year Treasury bond, fell sharply due to concerns of a slowing
global economy.
The period began with the Asian economic crisis pushing interest rates sharply
lower. When the crisis began to wane, rates stabilized and stayed in a
relatively narrow trade range through the spring. The main reason: a tug of war
between deflationary concerns and a stronger-than-expected U.S. economy. Then,
in July, amidst worries over Russia's financial problems and a sudden global
liquidity crisis, interest rates plummeted and bond prices rose. Bonds continued
to fare well through August, sending the yield on the 30-year Treasury bond to a
record low. When the Federal Reserve cut short-term interest rates on September
29 and again on October 15, fears of a global economic slowdown subsided
significantly and interest rates trended slightly higher throughout the final
weeks of the period. Overall, it was another good fiscal year for long-term
investors who used market downturns to add to existing positions at favorable
prices.
Sincerely,
/s/ Fergus Reid
- -----------------
Fergus Reid
Chairman
3
<PAGE>
Chase Vista Small Cap Equity Fund
as of October 31, 1998
(unaudited)
Fund Facts
Objective Capital Growth
Primary investments Small Cap Common Stocks
Suggested investment time frame Long-Term
Market benchmark Russell 2000 Index
Lipper Funds category Small Company Growth Funds Average
<TABLE>
<CAPTION>
Class A Class B Class I
---------------- --------------- ---------------
<S> <C> <C> <C>
Inception date 12/20/94 3/28/95 5/7/96
Newspaper symbol Sm Cap Sm Cap Sm Cap
Net assets $133.3 Million $79.7 Million $254.1 Million
</TABLE>
Investment Style/Market Cap
[9 BLOCK GRAPHIC]
4
<PAGE>
Chase Vista Small Cap Equity Fund
as of October 31, 1998
(unaudited)
How the Fund Performed
Chase Vista Small Cap Equity Fund, which seeks to provide capital growth by
investing in small cap common stocks, had a total return of -10.93% (Class A
shares, without sales charges) for the one-year period ended October 31, 1998.
How the Fund Was Managed
A general decline in small cap stocks had the most significant effect on
performance. However, the downturn was buffered by several successful strategies
employed by management, which helped the fund outperform its peers.
Early in the fiscal year, stocks came under pressure due to the economic and
currency crisis in southeast Asia. Management used the pullback to increase its
exposure to undervalued technology stocks, particularly in the software and
service areas. This strategy proved effective, as many of these securities
rebounded sharply when the crisis abated in early 1998. The Fund also enjoyed
good performance from several consumer cyclical stocks, most notably Duane Reade
and 99 Cents Stores. Additionally, financial and health care stocks posted solid
gains.
Throughout 1998, energy stocks and real estate investment trusts (REITs)
detracted from performance, but management's decision to invest in business
service companies proved rewarding. These companies benefited from the sharp
increase in outsourcing. Lason was one of our better performing stocks in this
area. Management's decision to trim the fund's exposure to consumer cyclicals
midway through the year also protected shareholder capital as stocks in this
sector retreated when the economy began to slow.
Like all small-cap mutual funds, the Fund was negatively effected by the stock
market's sharp summer selloff. However, management's decision to deploy cash
reserves following the pullback contributed favorably to performance. The Fund
also realized strong gains when the market rallied following the Federal
Reserve's decision to reduce both the federal funds rate and discount rate on
October 15. Technology stocks were among our better performers during this
period.
Where the Fund May Be Headed
Our outlook for small cap stocks compared to the broader market is favorable.
Valuations and earnings growth potential are relatively attractive, and more
important, investors are starting to show increased interest in small cap
stocks, as evidenced by the relative strength of these investments late in the
period. Given this backdrop, we look forward to using any further market
downturns as opportunities to establish new positions in companies that meet our
strict investment criteria.
5
<PAGE>
Chase Vista Small Cap Equity Fund
as of October 31, 1998
(unaudited)
How Much of the Fund Was Invested
[PIE CHART]
Cash/Other 0.5%
Investments 99.8%
What the Fund Invested In
Percentage of Total Portfolio Investments
[PIE CHART]
Basic Materials 1.18%
Capital Goods 8.33%
Consumer Cyclicals 30.84%
Consumer Staples 0.89%
Energy 1.97%
Financial 18.67%
Health Care 9.50%
REITs 3.55%
Technology 16.08%
Transportation 1.90%
U.S. Government Agency Obligations 3.74%
Utilities 3.35%
Top Ten Equity Holdings
1. American Management Systems, Inc. (2.03%) Provides a range of consulting
services including business re-engineering, change management, systems
integration, and systems development and implementation.
2. Waters Corp. (1.88%) Manufactures electronics and markets network
connectivity, contract manufacturing, agricultural electric fencing, and
medical products.
3. NCO Group, Inc. (1.80%) Provides accounts receivable management and related
services utilizing an extensive teleservices infrastructure.
4. Lason Holdings, Inc. (1.75%) Provides outsourcing services for records
management, document management, and business communications primarily
serving customers in the manufacturing, healthcare, financial services and
professional services.
5. CSG Systems International, Inc. (1.75%) Provides customer care and billing
solutions for cable television and direct broadcast satellite providers and
serves on-line services and telecommunications providers.
6. 99 Cents Only Stores (1.56%) Retails name-brand, consumable general
merchandise at a single price point of 99 cents. The Company's stores
offer an assortment of consumer goods as well as a variety of close-out
merchandise.
7. Zions Bancorporation (1.54%) Provides banking, trust, investment, and
payment systems products and services to consumers, businesses and
institutions.
8. Peoples Heritage Financial Group, Inc. (1.54%) A multi-bank holding
company offering commercial and consumer banking services and products,
as well as trust and investment advisory services.
9. Mastech Corp. (1.53%) Provides information technology services to
organizations such as a broad range of applications solutions and
services, including client/server design and development and
conversion/migration services.
10. Pharmaceutical Product Development, Inc. (1.44%) Provides research and
development and consulting services in the life, environmental, and
discovery sciences.
Top 10 equity holdings comprised 16.82% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
6
<PAGE>
Chase Vista Small Cap 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 (12/20/94)
--------- ------------
<S> <C> <C>
Class A Shares
Without Sales Charge -10.93% 22.12%
With Sales Charge* -16.05% 20.27%
Class B Shares
Without CDSC -11.60% 21.30%
With CDSC** -15.89% 20.85%
Class I Shares -10.64% 22.41%
</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.
* Sales charge for Class A shares is 5.75%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period
and a 3% CDSC for the period since inception.
+ The Fund commenced operations on 12/20/94. Class B Shares and Class I Shares
were introduced on 3/28/95 and 5/7/96, respectively. Investors should note that
the information presented for Class B and Class I Shares prior to their
introduction is based on historical expenses of the predecessor Class A Shares,
which are lower than the actual expenses of the Class B Shares and higher than
Class I Shares.
7
<PAGE>
Chase Vista Small Cap 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 Small Cap 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 Lipper(SM) Russell
Sm. Cap Equity Cap Growth 2000 Index
<S> <C> <C> <C>
"12/94" $9425 $10000 $10000
"10/95" $13723 $12429.7 $12011.1
"10/96" $17711.4 $15011.7 $14011.7
"10/97" $22069.8 $19011.4 $18122.8
"10/98" $19658 $16388 $15975
</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 Small Cap Equity Fund, the Lipper Small Company Growth
Funds Average and the Russell 2000 Index from December 20, 1994 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 Lipper Small Company Growth Funds Average represents the average performance
of a universe of 583 actively managed small company funds. Lipper is an
independent mutual fund performance monitor whose results are based on total
return and do not reflect a sales charge.
The Russell 2000 Index tracks the shares of 2,000 small-capitalization
companies. The index is unmanaged and reflects the reinvestment of dividends.
An individual cannot invest directly in the index.
Small capitalization funds typically carry more risk than stock funds investing
in well-established "blue-chip" companies since smaller companies generally have
a higher risk of failure. Historically, smaller companies' stock has experienced
a greater degree of market volatility than the average stock.
The Chase Vista Small Cap Equity Fund (Class A & Class B shares) is closed to
new investors.
8
<PAGE>
Chase Vista Small Cap Equity Fund
Portfolio of Investments October 31, 1998
<TABLE>
<CAPTION>
Shares Issuer Value
- -----------------------------------------------------------------
Long-Term Investments -- 92.2%
- -----------------------------------------------------------------
Common Stock -- 92.2%
---------------------
Advertising -- 1.7%
<S> <C> <C>
82,500 Lamar Advertising Co.* $ 2,575,547
250,000 Outdoor Systems, Inc.* 5,515,625
-----------
8,091,172
-----------
Automotive -- 2.2%
180,500 Dura Automotive Systems, Inc.* 4,309,438
275,000 Tower Automotive, Inc.* 6,118,750
-----------
10,428,188
-----------
Banking -- 7.2%
85,000 Centura Banks, Inc. 5,865,000
100,000 Chittenden Corp. 2,987,500
67,400 Cullen/Frost Bankers, Inc. 3,589,050
100,000 National Commerce Bancorporation 1,775,000
260,000 North Fork Bancorporation, Inc. 5,167,500
400,400 Peoples Heritage Financial
Group, Inc. 7,207,200
136,125 Zions Bancorporation 7,223,133
-----------
33,814,383
-----------
Biotechnology -- 0.4%
45,000 PathoGenesis Corp. 1,800,000
-----------
Broadcasting -- 0.8%
95,000 Heftel Broadcasting Corp.* 3,906,875
-----------
Business Services -- 14.1%
90,000 Abacus Direct Corp.* 4,387,500
70,000 Affiliated Computer Services, Inc.,
Class A* 2,590,000
200,000 CORT Business Services Corp.* 3,925,000
140,000 DeVRY, Inc.* 3,080,000
82,500 Fiserv, Inc.* 3,836,250
202,300 Interim Services, Inc.* 4,298,875
183,500 ITT Educational Services, Inc.* 5,447,656
150,000 Lason Holdings, Inc.* 8,212,500
100,000 Maximus, Inc.* 2,900,000
120,000 Metzler Group, Inc.* 5,040,000
267,500 NCO Group, Inc.* 8,426,250
</TABLE>
See notes to financial statements.
9
<PAGE>
Chase Vista Small Cap Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
178,750 NOVA Corp. of Georgia* $ 5,161,406
240,000 Rental Service Corp.* 5,340,000
125,000 United Rentals, Inc.* 3,359,375
-----------
66,004,812
-----------
Chemicals -- 1.2%
200,000 Crompton & Knowles Corp. 3,212,500
129,800 Spartech Corp. 2,336,400
-----------
5,548,900
-----------
Computer Software -- 10.6%
120,000 Acxiom Corp.* 3,015,000
310,000 American Management Systems, Inc.* 9,513,125
200,000 AXENT Technologies, Inc.* 5,025,000
150,000 CSG Systems International, Inc.* 8,175,000
400,000 Datastream Systems, Inc.* 4,025,000
114,000 Hyperion Solutions Corp.* 3,420,000
305,000 Mastech Corp.* 7,167,500
170,000 Rational Software Corp.* 3,803,750
175,000 Saville Systems PLC (Ireland)* 2,953,125
51,875 Wind River Systems, Inc.* 2,272,773
-----------
49,370,273
-----------
Computers/Computer Hardware -- 2.1%
45,000 Black Box Corp.* 1,501,875
100,000 Maxwell Technologies, Inc.* 2,575,000
250,000 Micros Systems, Inc.* 5,515,625
-----------
9,592,500
-----------
Construction -- 0.5%
137,000 D.R. Horton, Inc. 2,174,875
9,000 J. Ray McDermott, SA 282,375
-----------
2,457,250
-----------
Construction Materials -- 1.6%
100,000 NCI Building Systems, Inc.* 2,162,500
215,000 Wilmar Industries, Inc.* 5,321,250
-----------
7,483,750
-----------
Consumer Products -- 2.9%
100,000 Carriage Services, Inc.* 2,337,500
120,000 Equity Corp. International* 2,977,500
</TABLE>
See notes to financial statements.
10
<PAGE>
Chase Vista Small Cap Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
110,000 Furniture Brands International,
Inc.* $ 2,365,000
220,000 Interface, Inc., Class A* 2,708,750
150,000 Twinlab Corp.* 3,328,125
-----------
13,716,875
-----------
Electronics/Electrical Equipment -- 5.0%
95,000 PMC-Sierra, Inc.* 4,263,125
137,500 Sipex Corp.* 3,815,625
150,000 TranSwitch Corp.* 3,656,250
60,000 Uniphase Corp.* 2,970,000
120,000 Waters Corp.* 8,820,000
-----------
23,525,000
-----------
Entertainment/Leisure -- 2.6%
46,000 Anchor Gaming* 2,340,250
290,000 Cinar Films, Inc., Class B* 6,126,250
171,250 Family Golf Centers, Inc.* 3,606,953
-----------
12,073,453
-----------
Environmental Services -- 1.9%
75,000 Casella Waste Systems, Inc.* 2,212,500
150,000 Eastern Environmental Services, Inc.* 4,162,500
275,000 Newpark Resources, Inc.* 2,595,313
-----------
8,970,313
-----------
Financial Services -- 2.2%
100,000 Conning Corp. 1,475,000
200,000 Federated Investors, Inc., Class B 3,587,500
116,000 Healthcare Financial Partners, Inc.* 3,552,500
200,000 Knight/Trimark Group, Inc.* 1,625,000
-----------
10,240,000
-----------
Food/Beverage Products -- 0.9%
127,500 Suiza Foods Corp.* 4,159,687
-----------
Health Care/Health Care Services -- 8.6%
125,000 Alternative Living Services, Inc.* 3,265,625
58,333 Assisted Living Concepts, Inc.* 787,495
70,800 Henry Schein, Inc.* 2,739,075
97,600 IMPATH, Inc.* 2,989,000
60,000 Parexel International Corp.* 1,323,750
100,000 Pediatrix Medical Group, Inc.* 4,662,500
</TABLE>
See notes to financial statements.
11
<PAGE>
Chase Vista Small Cap Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- -----------------------------------------------------------------
Long-Term Investments -- (continued)
- -----------------------------------------------------------------
<S> <C> <C>
80,000 Perclose, Inc.* $ 1,910,000
250,000 Pharmaceutical Product
Development, Inc.* 6,750,000
5,200 Sunrise Assisted Living, Inc. 223,925
200,000 Total Renal Care Holdings, Inc.* 4,900,000
50,000 Trigon Healthcare, Inc.* 1,875,000
116,000 Universal Health Services, Inc.,
Class B* 5,952,250
150,000 Ventana Medical Systems* 2,775,000
-----------
40,153,620
-----------
Home Building Construction -- 0.4%
100,000 Lennar Corp. 2,025,000
-----------
Industrial Components -- 0.7%
137,500 VWR Scientific Products Corp.* 3,342,969
-----------
Insurance -- 4.4%
150,000 American Medical Security
Group, Inc. 1,312,500
36,000 CMAC Investment Corp. 1,507,500
150,000 Horace Mann Educators Corp. 4,293,750
100,200 Protective Life Corp. 3,713,663
90,000 Reinsurance Group of America, Inc. 4,961,250
330,000 Reliance Group Holdings, Inc. 4,599,375
-----------
20,388,038
-----------
Machinery & Engineering Equipment -- 1.2%
204,000 Applied Power, Inc., Class A 5,622,750
-----------
Manufacturing -- 2.2%
125,000 Pentair, Inc. 4,703,125
70,000 Varlen Corp. 2,091,250
150,000 Westinghouse Air Brake Co. 3,225,000
-----------
10,019,375
-----------
Office/Business Equipment -- 0.4%
75,000 Knoll, Inc.* 2,025,000
-----------
Oil & Gas -- 2.0%
150,000 BJ Services Co. 3,065,625
175,000 Newfield Exploration Co.* 4,254,687
175,000 Varco International, Inc.* 1,892,187
-----------
9,212,499
-----------
</TABLE>
See notes to financial statements.
12
<PAGE>
Chase Vista Small Cap Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- -----------------------------------------------------------------
Long-Term Investments -- (continued)
- -----------------------------------------------------------------
<S> <C> <C>
Pharmaceuticals -- 0.6%
165,000 King Pharmaceuticals, Inc.* $ 2,567,812
-----------
Real Estate Investment Trust -- 4.2%
150,000 Beacon Capital Partners Inc. #* 3,000,000
352,900 Brandywine Realty Trust 6,308,088
47,956 Healthcare Realty Trust, Inc. 1,123,969
240,000 Manufactured Home Communities,
Inc. 5,985,000
120,000 Public Storage, Inc. 3,202,500
-----------
19,619,557
-----------
Retailing -- 4.3%
157,900 99 Cents Only Stores* 7,302,875
139,800 Duane Reade Inc.* 5,399,775
125,000 Linens 'N Things, Inc.* 3,867,188
130,000 Williams-Sonoma, Inc.* 3,542,500
-----------
20,112,338
-----------
Shipping/Transportation -- 1.9%
200,000 Coach USA, Inc.* 5,362,500
105,000 Hub Group, Inc., Class A* 1,890,000
50,000 Mark VII, Inc.* 800,000
35,000 MotivePower Industries, Inc. 890,313
-----------
8,942,813
-----------
Telecommunications -- 1.7%
150,000 Aspect Telecommunications Corp.* 2,268,750
50,000 Dialogic Corp.* 1,125,000
120,000 Metromedia Fiber Network, Inc.,
Class A* 4,545,000
-----------
7,938,750
-----------
Utilities -- 1.7%
170,000 Sierra Pacific Resources 6,194,375
46,200 TNP Enterprises, Inc. 1,559,250
-----------
7,753,625
==============================================================
Total Long-Term Investments 430,907,577
(Cost $363,672,974)
==============================================================
</TABLE>
See notes to financial statements.
13
<PAGE>
Chase Vista Small Cap Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- --------------------------------------------------------------------
Short-Term Investments -- 8.1%
- --------------------------------------------------------------------
U. S. Government Agency Obligations -- 3.8%
-------------------------------------------
<S> <C> <C>
$17,544,000 Federal Home Loan Bank, Discount
Note, 5.40%, 11/02/98 $ 17,544,000
------------
(Cost $17,544,000)
Corporate Floating Rate Notes -- 4.3%
--------------------------------------
Insurance -- 4.3%
General American Life Insurance
Co.,
10,000,000 5.77%, 03/01/99 10,000,000
10,000,000 5.83%, 03/01/99 10,000,000
------------
Total Corporate Floating Rate Notes 20,000,000
(Cost $20,000,000)
=====================================================================
Total Short-Term Investments 37,544,000
(Cost $37,544,000)
=====================================================================
Total Investments -- 100.3% $468,451,577
(Cost $401,216,974)
=====================================================================
</TABLE>
Index
* -- Non-income producing security.
# -- Security may only be sold to qualified institutional buyers.
ADR -- American Depository Receipt.
FRN -- Floating Rate Note: The maturity date shown is the next interest reset
date; the rate shown is the rate in effect at October 31, 1998.
See notes to financial statements.
14
<PAGE>
Chase Vista Large Cap Equity Fund
as of October 31, 1998
(unaudited)
Fund Facts
Objective Capital Growth
Primary investments Large Cap Common Stocks
Suggested investment time frame Mid- to Long-Term
Market benchmark S&P 500 Index
Lipper Funds category Growth Funds Average
<TABLE>
<CAPTION>
Class A Class B Class I
--------------- -------------- ---------------
<S> <C> <C> <C>
Inception date 5/8/96 5/7/96 11/30/90
Newspaper symbol Lrg Cap Lrg Cap Lrg Cap
Net assets $49.7 Million $9.6 Million $117.3 Million
</TABLE>
Investment Style/Market Cap
[9 BLOCK GRAPHIC]
15
<PAGE>
Chase Vista Large Cap Equity Fund
as of October 31, 1998
(unaudited)
How the Fund Performed
Chase Vista Large Cap Equity Fund, which seeks to provide capital growth through
a portfolio of large cap common stocks, provided shareholders with a total
return of 15.15% (Class A shares, without sales charges) for the one-year period
ended October 31, 1998.
How the Fund Was Managed
Superior stock selection and good sector rotation contributed significantly to
the Fund's return. A large disparity in returns between the largest stocks that
comprise the Standard & Poor's 500 Composite Index and the broader market
detracted from investment results.
Early in the period, the Fund's exposure to defensive industries, such as media,
utilities and supermarkets, protected shareholder capital, as most stocks
declined sharply due to the Asian economic crisis. The Fund used the market
pullback to increase its exposure to attractively priced, high-quality stocks,
many of which performed well later in the fiscal year.
The Fund's decision to increase its investment in economically sensitive stocks
in early 1998 bolstered results, as the impact of Asia's problems began to
subside. Industrial stocks, such as Ingersoll Rand and John Deere, and consumer
stocks, such as Dayton Hudson and Federated Stores, were among our better
performers during this period.
Technology stocks also helped performance. EMC, a data storage company that has
performed well for several years, rose sharply, thanks to increased product
demand. Additionally, Texas Instruments and Xerox contributed favorably to the
Fund.
Several decisions made prior to the stock market selloff in August proved
beneficial to shareholders. We increased our exposure to defensive issues.
Supermarket stocks such as Kroger, American Stores and Safeway, turned in solid
gains. We also took profits in several cyclical stocks and reduced our exposure
to financial stocks, which came under pressure due to concerns over global
liquidity ignited by the Russian financial crisis.
Where the Fund May Be Headed
The environment for large cap stocks is favorable. Economic uncertainty outside
the U.S. could result in earnings surprises for some U.S. companies and lead to
further market volatility. However, we believe the market should hold up well
provided interest rates stay low and inflation remains benign. Given this
backdrop, we intend to focus on companies with the potential to grow their
earnings regardless of prevailing economic and market conditions. As is the case
in this type of environment, stock selection will be critically important in
helping the Fund achieve good relative performance.
16
<PAGE>
Chase Vista Large Cap Equity Fund
as of October 31, 1998
(unaudited)
How Much of the Fund Was Invested
[PIE CHART]
Cash/Other 0.03%
Investments 99.7%
What the Fund Invested In
Percentage of Total Portfolio Investments
[PIE CHART]
Basic Materials 3.46%
Capital Goods 6.20%
Consumer Cyclicals 24.04%
Consumer Staples 2.72%
Energy 6.57%
Financial 13.64%
Health Care 9.24%
REITs 1.63%
Technology 10.55%
Transportation 1.26%
U.S. Government Agency Obligations 8.87%
Utilities 11.82%
Top Ten Equity Holdings
1. EMC Corp. (2.91%) Designs, manufactures, markets, and supports products
that store, manage and protect information from all major computing
environments, including "UNIX" and "Windows NT."
2. Philip Morris Companies, Inc. (2.48%) A consumer packaged goods company.
The Company's products include "Bull's Eye," "Breakstone's," "Kraft" and
"Marlboro" cigarettes, "Cracker Barrel" and "Polly-o" cheeses, "Miller" and
"Milwaukee's Best" beer.
3. Kroger Co. (2.00%) Operates supermarkets and convenience stores and
processes food. Also operates food processing facilities which supply
private label products to the company's supermarkets.
4. Federal Home Loan Mortgage Corp. (1.75%) The Corporation supplies lenders
with the money to make mortgages and packages into marketable securities.
5. MCI WorldCom, Inc. (1.71%) Provides facilities-based and fully integrated
local, long distance, international, and internet services.
6. BellSouth Corp. (1.71%) Provides domestic and international wireless
telecommunications services, systems and products mainly to the
southeastern U.S.
7. Comcast Corp., Special Class A (1.67%) Develops, manages and operates
wired telecommunications. It's businesses include cable television,
telephone services and wireless telecommunications.
8. BankAmerica Corp. (1.62%) Provides retail banking services, asset
management, financial products, corporate finance, specialized finance,
capital markets and financial services.
9. Xerox Corp. (1.59%) Develops, manufactures, services and finances a
complete range of document processing products and provides network
management, consulting and integration services for medium and large
companies.
10. Pharmacia & Upjohn, Inc. (1.52%) Manufactures and markets a wide assortment
of subscription and over-the-counter products such as anticancer drugs,
contraceptives, medicines for pain relief and rheumatoid arthritis.
Top 10 equity holdings comprised 18.96% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
17
<PAGE>
Chase Vista Large Cap 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 (11/30/90)
-------- --------- ----------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge 15.15% 18.78% 17.57%
With Sales Charge* 8.53% 17.38% 16.70%
Class B Shares
Without CDSC 14.71% 18.55% 17.43%
With CDSC** 9.71% 18.35% 17.43%
Class I Shares 15.82% 19.17% 17.82%
</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 for Class A shares is 5.75%.
** Assumes a 5% CDSC (contingent deferred sales charge) for the one year period,
a 2% CDSC for the five year period and a 0% CDSC for the period since inception.
+ The Fund commenced operations on 11/30/90. Class A Shares and Class B Shares
were introduced on 5/8/96 and 5/7/96, respectively. Investors should note that
the information presented for Class A and B Shares prior to their introduction
is based on historical expenses of the predecessor Class I Shares, which are
lower than the actual expenses of the Class A and B Shares.
18
<PAGE>
Chase Vista Large Cap 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 Large Cap 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 S&P 500 Lipper Growth
Large Cap Equity Index Funds
<S> <C> <C> <C>
"1990" $9707.75 $10278 $10343
"1991" $11779.3 $12532.5 $13262.1
"1992" $12859.4 $13779 $14384
"1993" $14368.1 $16808.2 $16945.4
"1994" $14995.4 $17456.7 $17276.7
"1995" $18055.4 $22064.5 $21146
"1996" $22586.8 $27372.4 $25115.6
"1997" $29519.3 $36152.6 $31914.4
"1998" $33991 $44107 $34864
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value
will fluctuate with market conditions. When shares are redeemed, they may be
worth more or less than their original cost.
This chart illustrates comparative performance for $10,000 invested in Class I
Shares of Chase Vista Large Cap Equity Fund, the Lipper Growth Funds Average and
the Standard and Poor's 500 Index from November 30, 1990 to October 31, 1998.
The performance of the Fund assumes the reinvestment of all dividends and
capital gains and does not include a sales charge. The performance of the
average and the 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 commenced operations on 11/30/90. Class A
Shares and Class B Shares were introduced on 5/8/96 and 5/7/96, respectively.
Investors should note that information presented for Class A and Class B Shares
prior to their introduction is based on historical expenses of the predecessor
Class I Shares, which are lower than the actual expenses of the Class A and
Class B Shares. Additionally, annualized figures have been restated to reflect
the initial 5.75% front-end sales charge (Class A Shares) and 5% contingent
deferred sales charge (Class B Shares). Class I Shares have a $1,000,000 minimum
initial deposit and carry no sales charge.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
The Lipper Growth Funds Average represents thew average performance of a
universe of 943 actively managed growth funds. Lipper is an independent mutual
fund performance monitor whose results are based on total return and do not
reflect a sales charge.
The Standard & Poor's 500 Index is a broad-based index that is generally
considered representative of the U.S. stock market. The index is unmanaged and
reflects reinvestment of dividends. An individual cannot invest directly in the
index.
19
<PAGE>
Chase Vista Large Cap Equity Fund
Portfolio of Investments October 31, 1998
<TABLE>
<CAPTION>
Shares Issuer Value
- ---------------------------------------------------------------
Long-Term Investments -- 91.5%
- ---------------------------------------------------------------
Common Stock -- 91.5%
---------------------
<S> <C> <C>
Aerospace -- 1.3%
40,000 General Dynamics Corp. $2,367,500
----------
Airlines -- 0.8%
20,000 AMR Corp.* 1,340,000
----------
Automotive -- 1.5%
28,000 Ford Motor Co. 1,519,000
17,000 General Motors Corp. 1,072,063
----------
2,591,063
----------
Banking -- 5.9%
50,105 BankAmerica Corp. 2,877,906
29,000 Comerica, Inc. 1,870,500
45,000 Firstar Corp. 2,553,750
22,000 National City Corp. 1,414,875
12,000 SunTrust Banks, Inc. 836,250
23,000 U.S. Bancorp 839,500
----------
10,392,781
----------
Biotechnology -- 0.7%
17,000 Biogen, Inc.* 1,181,500
----------
Broadcasting -- 0.9%
60,000 CBS Corp. 1,676,250
----------
Cabletelevision -- 2.9%
60,000 Comast Corp., Special Class A 2,962,500
50,000 Tele-Communications, TCI Group,
Class A* 2,106,250
----------
5,068,750
----------
Chemicals -- 1.0%
23,000 Air Products and Chemicals, Inc. 868,250
10,000 Dow Chemical Co. 936,250
----------
1,804,500
----------
Computer Software -- 2.3%
40,012 Computer Associates International 1,575,473
19,000 Computer Sciences Corp.* 1,002,250
47,000 Oracle Corp.* 1,389,437
----------
3,967,160
----------
</TABLE>
See notes to financial statements.
20
<PAGE>
Chase Vista Large Cap Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------------------------------------------------------------------
Long-Term Investments -- (continued)
- ----------------------------------------------------------------------
<S> <C> <C>
Computers/Computer Hardware -- 8.3%
36,000 Compaq Computer Corp.* $ 1,138,500
22,000 Dell Computer Corp.* 1,443,750
80,000 EMC Corp.* 5,150,000
25,000 Gateway 2000 Inc.* 1,395,313
29,000 Ingram Micro, Inc., Class A* 1,319,500
35,000 Seagate Technology, Inc.* 923,125
38,000 Sun Microsystems, Inc.* 2,213,500
18,000 Texas Instruments Inc. 1,150,875
-----------
14,734,563
-----------
Consumer Products -- 3.8%
12,500 Colgate-Palmolive Co. 1,104,688
38,000 Fortune Brands, Inc. 1,256,375
86,000 Philip Morris Companies, Inc. 4,396,750
-----------
6,757,813
-----------
Diversified -- 0.6%
18,000 Tyco International LTD (Bermuda) 1,114,875
-----------
Entertainment/Leisure -- 2.9%
40,000 Carnival Corp., Class A 1,295,000
23,000 Time Warner, Inc. 2,134,687
29,000 Viacom, Inc. Class B* 1,736,375
-----------
5,166,062
-----------
Environmental Services -- 0.9%
36,575 Waste Management, Inc. 1,650,447
-----------
Financial Services -- 4.3%
10,000 American Express Co. 883,750
28,765 Associates First Capital Corp., Class A 2,027,933
54,000 Federal Home Loan Mortgage Corp. 3,105,000
23,000 Morgan Stanley, Dean Witter,
Discover and Co. 1,489,250
-----------
7,505,933
-----------
Food/Beverage Products -- 2.7%
46,000 PepsiCo Inc. 1,552,500
35,000 Quaker Oats Co. 2,067,187
16,000 Unilever NV, ADR (Netherlands) 1,204,000
-----------
4,823,687
-----------
</TABLE>
See notes to financial statements.
21
<PAGE>
Chase Vista Large Cap Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ---------------------------------------------------------------
Long-Term Investments -- (continued)
- ---------------------------------------------------------------
<S> <C> <C>
Health Care/Health Care Services -- 3.4%
50,000 HBO & Co. $ 1,312,500
133,000 HEALTHSOUTH Corp.* 1,612,625
60,000 Tenet Healthcare Corp.* 1,676,250
19,000 Wellpoint Health Networks, Inc.,
Class A* 1,398,875
-----------
6,000,250
-----------
Insurance -- 3.6%
55,000 ACE, LTD (Bermuda) 1,863,125
58,000 Allstate Corp. 2,497,625
25,000 Exel LTD, Class A (Bermuda) 1,910,938
-----------
6,271,688
-----------
Manufacturing -- 2.7%
38,000 Ingersoll-Rand Co. 1,919,000
31,000 Johnson Controls, Inc. 1,743,750
29,000 Parker Hannifin Corp. 1,036,750
-----------
4,699,500
-----------
Media/Advertising -- 0.7%
25,000 Omnicom Group, Inc. 1,235,937
-----------
Metals/Mining -- 0.9%
20,000 Aluminum Co. of America (ALCOA) 1,585,000
-----------
Office/Business Equipment -- 1.6%
29,000 Xerox Corp. 2,809,375
-----------
Oil & Gas -- 6.6%
11,000 British Petroleum PLC, ADR
(United Kingdom) 972,813
65,000 Coastal Corp. 2,291,250
29,000 Halliburton Company 1,042,187
29,000 Mobil Corp. 2,194,937
21,000 Schlumberger, LTD 1,102,500
34,000 Texaco, Inc. 2,016,625
36,500 USX-Marathon Group 1,193,094
30,100 Williams Companies, Inc. 825,869
-----------
11,639,275
-----------
Packaging -- 0.9%
51,000 Owens-Illinois, Inc.* 1,558,687
-----------
</TABLE>
See notes to financial statements.
22
<PAGE>
Chase Vista Large Cap Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
Paper/Forest Products -- 0.7%
38,000 Willamette Industries, Inc. $ 1,178,000
-----------
Pharmaceuticals -- 5.2%
10,000 Bristol-Myers Squibb Co. 1,105,625
9,000 Pfizer, Inc. 965,812
51,000 Pharmacia & Upjohn, Inc. 2,699,812
25,000 Schering-Plough Corp. 2,571,875
29,000 SmithKline Beecham PLC, ADR
(United Kingdom) 1,848,750
-----------
9,191,874
-----------
Photographic Equipment -- 0.8%
18,000 Eastman Kodak Co. 1,395,000
-----------
Printing & Publishing -- 1.0%
64,000 New York Times Company, Class A 1,808,000
-----------
Real Estate Investment Trust -- 1.6%
40,782 Equity Office Properties Trust 978,768
20,000 Equity Residential Properties Trust 840,000
40,000 Public Storage, Inc. 1,067,500
-----------
2,886,268
-----------
Retailing -- 8.7%
50,000 American Stores Co. 1,628,125
16,000 Costco Companies, Inc., Class A* 908,000
40,000 CVS Corp. 1,827,500
50,000 Dayton-Hudson Corp. 2,118,750
32,000 Federated Department Stores* 1,230,000
64,000 Kroger Co.* 3,552,000
65,000 Office Depot, Inc.* 1,625,000
50,000 Safeway, Inc.* 2,390,625
-----------
15,280,000
-----------
Shipping/Transportation -- 0.5%
29,000 Burlington Northern Santa Fe 895,375
-----------
Telecommunications -- 7.7%
25,000 AirTouch Communications, Inc.* 1,400,000
17,500 AT&T Corp., 1,089,375
21,000 Bell Atlantic Corp. 1,115,625
38,000 BellSouth Corp. 3,032,875
24,000 GTE Corp. 1,408,500
</TABLE>
See notes to financial statements.
23
<PAGE>
Chase Vista Large Cap Equity Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
55,000 MCI WorldCom, Inc.* $ 3,038,750
20,000 Sprint Corp. 1,535,000
19,000 Tellabs, Inc. 1,045,000
-----------
13,665,125
-----------
Utilities -- 4.1%
42,000 CMS Energy Corp. 1,850,625
30,000 Consolidated Edison, Inc. 1,503,750
20,000 Duke Energy Corp. 1,293,750
42,000 FPL Group Inc. 2,627,625
-----------
7,275,750
-----------
Total Common Stock 161,517,988
-----------
(Cost $122,098,353)
Rights -- 0.0%
--------------
Computers/Computer Hardware --
18,000 Texas Instruments Inc., Poison Pill,
Expires 06/18/08 0
24
(Cost $0)
===================================================================
Total Long-Term Investments 161,517,988
(Cost $122,098,353)
===================================================================
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
- -------------------------------------------------------------------------------
Short-Term Investments -- 8.9%
- -------------------------------------------------------------------------------
U. S. Government Agency Obligations -- 8.9%
-------------------------------------------
<S> <C> <C>
$15,720,000 Federal Home Loan Bank, Discount
Note, 5.40%, 11/02/98 $ 15,720,000
(Cost $15,720,000)
===============================================================================
Total Investments -- 100.4% $177,237,988
(Cost $137,818,353)
===============================================================================
</TABLE>
Index
* -- Non-income producing security.
# -- Security may only be sold to qualified institutional buyers.
ADR -- American Depository Receipt.
FRN -- Floating Rate Note: The maturity date shown is the next interest reset
date; the rate shown is the rate in effect at October 31, 1998.
See notes to financial statements.
24
<PAGE>
Chase Vista Balanced Fund
as of October 31, 1998
(unaudited)
Fund Facts
Objective Capital Growth Plus Current Income
Primary investments Stocks, Bonds and Convertibles
Suggested investment time frame Mid- to Long-Term
Market benchmark S&P 500 Index
Lehman Aggregate Bond Index
Lipper Funds category Balanced Funds Average
<TABLE>
<CAPTION>
Class A Class B
--------------- --------------
<S> <C> <C>
Inception date 11/4/92 11/4/93
Newspaper symbol Balance Not listed
Net assets $95.1 Million $23.4 Million
</TABLE>
Investment Style/Market Cap Average Maturity/Quality
[9 BLOCK GRAPHIC] [9 BLOCK GRAPHIC]
25
<PAGE>
Chase Vista Balanced Fund
as of October 31, 1998
(unaudited)
How the Fund Performed
Chase Vista Balanced Fund, which seeks to provide capital growth plus current
income by investing in a portfolio of high-quality stocks, bonds and convertible
securities, had a total return of 9.60% (Class A shares, without sales charges)
for the one-year period ended October 31, 1998.
How the Fund Was Managed
Overweighted exposure to sectors that outperformed the market and key decisions
made by Fund management were mainly responsible for the Fund's investment
results.
Early in the period, the Fund's decision to increase its exposure to defensive
stocks, such as media and utility stocks, contributed favorably to performance
as the Asian economic crisis weighed heavily on the market. The Fund also used
the market's weakness to purchase attractively priced, high quality stocks that
turned in good results later in the period. As concerns over the Asian crisis
waned in early 1998, we took profits on several fixed-income investments and
increased our exposure to equities. During this period, consumer cyclical and
financial services stocks were among the Fund's better performers.
Throughout the period, our small- and mid-cap stocks detracted from the
investment results. Secondary stocks underperformed their large-cap
counterparts, despite a strong run late in the period. The Fund's decision to
maintain a slight underweighting in equities during the market's rebound in
early 1998 also hampered results. This same strategy, however, served to protect
shareholder capital when equities came under pressure last summer, as fears of a
global liquidity crisis drove stocks sharply lower.
The Fund's fixed-income holdings performed well during the fiscal year, as
interest rates declined due to fears of a global economic slowdown. The Fund
further benefited from its decision to maintain a slightly longer-than-average
duration throughout much of the period. Early in 1998, the Fund's overweighting
in mortgage-backed securities helped performance, buoyed by attractive yields
and diminishing prepayment fears. In the final months of the period, the Fund's
Treasury securities turned in solid gains, as long-term interest rates fell to
historic lows.
Where the Fund May Be Headed
Our outlook for the Fund remains favorable because we have a generally positive
forecast for both the equity and fixed-income markets. We are particularly
optimistic about the prospects for higher prices among small- and mid-cap
stocks, given their attractive valuations and the recent investor interest in
these securities. We intend to use further market downturns as opportunities to
increase our exposure in select holdings and establish new positions in
companies that meet our strict investment criteria.
26
<PAGE>
Chase Vista Balanced Fund
as of October 31, 1998
(unaudited)
How Much of the Fund Was Invested
[PIE CHART]
Cash/Other 2.1%
Investments 97.9%
What the Fund Invested In
Percentage of Total Portfolio Investments
[PIE CHART]
Asset Backed Securities 2.06%
Basic Materials 1.49%
Capital Goods 5.80%
Consumer Cyclicals 12.24%
Consumer Staples 3.19%
Energy 3.58%
Financial 7.74%
Health Care 5.77%
Mortgage Backed Securities 10.99%
REITs 2.92%
Technology 5.84%
Transportation 0.32%
U.S. Government Agency Obligations 5.56%
U.S. Treasury Securities 21.85%
Utilities 10.65%
Top Ten Equity Holdings
1. EMC Corp. (1.26%) Designs, manufactures, markets, and supports products
that store, manage and protect information from all major computing
environments, including "UNIX" and "Windows NT."
2. Philip Morris Companies, Inc. (0.96%) A consumer packaged goods company .
The Company's products include "Bull's Eye," "Breakstone's," "Kraft" and
"Marlboro" cigarettes, "Cracker Barrel" and "Polly-o" cheeses, "Miller" and
"Milwaukee's Best" beer.
3. Kroger Co. (0.93%) Operates supermarkets and convenience stores and
processes food. Also operates food processing facilities which supply
private label products to the company's supermarkets.
4. Tele-Communications, TCI Group, Class A (0.86%) Constructs, acquires, owns,
and operates cable television systems. The Company also provides
satellite-delivered video entertainment, information, and home shopping
programming services to various video distribution media.
5. Ingersoll-Rand Co. (0.86%) Manufactures construction machinery and
industrial equipment. The Company's products include air compressors,
tools, pumps, bearings and automotive components, locks and door hardware.
6. Beacon Capital Partners Inc. (0.85%) A real-estate investment firm with
primary initial focus on the office sector and expertise in acquisitions,
development and asset management.
7. BellSouth Corp. (0.85%) Provides domestic and international wireless
telecommunications services, systems and products mainly to the
southeastern U.S.
8. Schering-Plough Corp. (0.82%) Discovers, develops, manufactures, and
markets pharmaceutical and health care products. The Company currently
markets allergy/respiratory products, anti-infective and anti-cancer
products, dermatologicals, and other health care products.
9. MCI WorldCom, Inc. (0.75%) Provides facilities-based and fully integrated
local, long distance, international, and Internet services.
10. Sun Microsystems, Inc. (0.74%) Supplies enterprise network computing
products. The Company's products include desktop systems, servers,
storage subsystems, network switches, software, and a full range of
services and support.
Top 10 equity holdings comprised 8.88% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
27
<PAGE>
Chase Vista Balanced 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 (11/4/92)
-------- -------- ----------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge 9.60% 13.21% 13.97%
With Sales Charge* 3.30% 11.88% 12.85%
Class B Shares
Without CDSC 8.89% 12.39% 13.28%
With CDSC** 3.90% 12.14% 13.19%
</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 2% CDSC for the period since inception.
+ The Fund commenced operations on 11/4/92. Class B Shares were introduced on
11/4/93. Investors should note that the information presented for Class B Shares
prior to their introduction is based on historical expenses of the predecessor
Class A Shares, which are lower than the actual expenses of the Class B Shares.
28
<PAGE>
Chase Vista Balanced 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 Balanced 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 Lipper Balanced S&P 500 Lehman Aggregate
Balanced Fund Funds Avg. Index Bond Index
<S> <C> <C> <C> <C>
"1992" $9425 $10000 $10000 $10000
"1993" $10784.5 $11224.9 $11114.6 $11182.6
"1994" $10952.8 $11132.5 $11543.5 $10771.6
"1995" $12891.5 $13145.9 $14590.4 $12457.6
"1996" $15069 $15088 $18100.4 $13184.2
"1997" $18306.5 $18036.5 $23906.4 $14358.4
"1998" $20064 $19641 $29167 $15697
</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 Balanced Fund, the Lipper Balanced Funds Average, the S&P
500 Index and the Lehman Aggregate Bond Index from November 4, 1992 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 Balanced Funds Average represents the average performance of a
universe of 392 actively managed balanced funds. Lipper is an independent mutual
fund performance monitor whose results are based on total return and do not
reflect a sales charge.
The Standard & Poor's 500 Index is a broad-based index that is generally
considered representative of the U.S. stock market. The index is unmanaged and
reflects reinvestment of dividends. An individual cannot invest directly in the
index.
The Lehman Aggregate Bond Index is composed of the Lehman Government/Corporate
Index and the Mortgage-backed Securities Index and includes U.S. Treasury and
agency issues and corporate and mortgage-backed bonds. The index is unmanaged
and reflects reinvestment of dividends. An individual cannot invest directly in
the index.
29
<PAGE>
Chase Vista Balanced Fund
Portfolio of Investments October 31, 1998
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------------------------------------------------------------------
Long-Term Investments -- 95.0%
- ----------------------------------------------------------------------
Common Stock -- 47.5%
---------------------
Aerospace -- 1.2%
<S> <C> <C>
10,000 General Dynamics Corp. $ 591,875
11,500 Sundstrand Corp. 539,781
3,000 United Technologies, Corp. 285,750
-----------
1,417,406
-----------
Agricultural Production/Services -- 0.2%
7,000 Universal Corp. 259,875
-----------
Automotive -- 0.5%
10,000 Ford Motor Co. 542,500
-----------
Banking -- 2.6%
15,052 BankAmerica Corp. 864,549
4,500 Comerica, Inc. 290,250
6,600 Cullen/Frost Bankers, Inc. 351,450
5,500 National City Corp. 353,719
20,000 Southwest Bancorp of Texas* 306,250
6,000 U.S. Bancorp 219,000
14,000 Zions Bancorporation 742,875
-----------
3,128,093
-----------
Biotechnology -- 0.4%
6,000 Biogen, Inc.* 417,000
-----------
Broadcasting -- 0.4%
17,765 CBS Corp. 496,310
-----------
Business Services -- 0.3%
12,500 Mastech Corp.* 293,750
-----------
Cabletelevision -- 0.8%
24,000 Tele-Communications, TCI Group,
Class A* 1,011,000
-----------
Chemicals -- 0.6%
5,000 Dow Chemical Co. 468,125
10,000 Solutia Inc. 219,375
-----------
687,500
-----------
Computer Software -- 0.8%
15,637 Computer Associates International 615,707
7,000 Computer Sciences Corp.* 369,250
-----------
984,957
-----------
</TABLE>
See notes to financial statements.
30
<PAGE>
Chase Vista Balanced Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- -----------------------------------------------------------------------
Long-Term Investments -- (continued)
- -----------------------------------------------------------------------
<S> <C> <C>
Computers/Computer Hardware -- 4.3%
14,000 Compaq Computer Corp.* $ 442,750
23,000 EMC Corp.* 1,480,625
9,000 Gateway 2000 Inc.* 502,313
10,500 Ingram Micro, Inc., Class A* 477,750
3,000 International Business Machines
Corp. 445,312
6,000 Lexmark International Group, Inc.,
Class A (Germany)* 419,625
15,000 Sun Microsystems, Inc.* 873,750
7,200 Texas Instruments Inc. 460,350
------------
5,102,475
------------
Consumer Products -- 1.6%
5,000 Colgate-Palmolive Co. 441,875
9,000 Fortune Brands, Inc. 297,562
22,000 Philip Morris Companies, Inc. 1,124,750
------------
1,864,187
------------
Electronics/Electrical Equipment -- 0.4%
10,000 Uniphase Corp.* 495,000
------------
Entertainment/Leisure -- 1.7%
16,000 Carnival Corp., Class A 518,000
12,375 Tele-Communications, Inc., Liberty
Media Group, Class A* 471,023
8,000 Time Warner, Inc. 742,500
5,500 Viacom, Inc. Class B* 329,312
------------
2,060,835
------------
Environmental Services -- 0.4%
10,800 Waste Management, Inc. 487,350
------------
Financial Services -- 1.4%
5,820 Associates First Capital Corp., Class A 410,310
10,000 Federal Home Loan Mortgage Corp. 575,000
10,000 Morgan Stanley, Dean Witter,
Discover and Co. 647,500
------------
1,632,810
------------
Food/Beverage Products -- 1.9%
16,000 PepsiCo Inc. 540,000
11,000 Quaker Oats Co. 649,687
</TABLE>
See notes to financial statements.
31
<PAGE>
Chase Vista Balanced Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
19,700 Keebler Foods Corp.* $ 566,375
6,800 Unilever NV, ADR (Netherlands) 511,700
-----------
2,267,762
-----------
Health Care/Health Care Services -- 2.2%
12,500 Concentra Managed Care, Inc.* 128,125
12,500 HBO & Co. 328,125
40,000 HEALTHSOUTH Corp.* 485,000
14,200 Tenet Healthcare Corp.* 396,712
11,000 Total Renal Care Holdings, Inc.* 269,500
7,700 Universal Health Services, Inc.,
Class B* 395,106
8,000 Wellpoint Health Networks, Inc.,
Class A* 589,000
-----------
2,591,568
-----------
Insurance -- 1.6%
17,400 Allstate Corp. 749,289
3,200 Exel LTD, Class A (Bermuda) 244,600
14,500 Nationwide Financial Services, Inc.,
Class A 601,750
18,000 Reliance Group Holdings, Inc. 250,875
-----------
1,846,514
-----------
Manufacturing -- 1.9%
20,000 Ingersoll-Rand Co. 1,010,000
10,000 Johnson Controls, Inc. 562,500
12,000 Parker Hannifin Corp. 429,000
5,600 Pentair, Inc. 210,700
-----------
2,212,200
-----------
Media/Advertising -- 0.3%
8,000 Omnicom Group, Inc. 395,500
-----------
Office/Business Equipment -- 0.7%
9,000 Xerox Corp. 871,875
-----------
Oil & Gas -- 3.6%
6,300 British Petroleum PLC, ADR
(United Kingdom) 557,156
19,200 Coastal Corp. 676,800
9,000 Exxon Corp. 641,250
8,000 Halliburton Co. 287,500
</TABLE>
See notes to financial statements.
32
<PAGE>
Chase Vista Balanced Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
8,700 Mobil Corp. $ 658,481
10,800 Texaco, Inc. 640,575
10,700 Tosco Corp. 300,269
16,500 Williams Companies, Inc. 452,719
-----------
4,214,750
-----------
Packaging -- 0.4%
14,000 Owens-Illinois, Inc.* 427,875
-----------
Paper/Forest Products -- 0.3%
12,200 Willamette Industries, Inc. 378,200
-----------
Pharmaceuticals -- 2.5%
4,000 Bristol-Myers Squibb Co. 442,250
16,000 Pharmacia & Upjohn, Inc. 847,000
9,400 Schering-Plough Corp. 967,025
12,000 SmithKline Beecham PLC, ADR
(United Kingdom) 765,000
-----------
3,021,275
-----------
Printing & Publishing -- 0.5%
20,000 New York Times Co., Class A 565,000
-----------
Real Estate Investment Trust -- 2.9%
15,000 AMB Property Corp. 345,000
50,000 Beacon Capital Partners Inc. #* 1,000,000
19,468 Equity Office Properties Trust 467,232
10,300 Equity Residential Properties Trust 432,600
12,351 Healthcare Realty Trust, Inc. 289,477
20,800 Public Storage, Inc. 555,100
10,000 Spieker Properties, Inc. 345,000
-----------
3,434,409
-----------
Retailing -- 3.4%
7,000 Costco Companies, Inc., Class A* 397,250
12,000 CVS Corp. 548,250
16,000 Federated Department Stores* 615,000
19,700 Kroger Co.* 1,093,350
21,700 Office Depot, Inc.* 542,500
17,200 Safeway, Inc.* 822,375
-----------
4,018,725
-----------
</TABLE>
See notes to financial statements.
33
<PAGE>
Chase Vista Balanced Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
Shipping/Transportation -- 0.3%
12,000 Burlington Northern Santa Fe $ 370,500
-----------
Telecommunications -- 5.6%
20,000 American Tower Corp.* 437,500
8,000 At Home Corp., Ser. A* 354,000
12,500 BellSouth Corp. 997,656
14,000 Equant NV, New York Registered
Shares (Netherlands)* 612,500
25,000 Global Crossing LTD (Bermuda)* 718,750
6,100 GTE Corp. 357,994
16,000 MCI WorldCom, Inc.* 884,000
15,000 NEXTLINK Communications, Inc.,
Class A* 384,375
14,000 Qwest Communications International
Inc.* 547,750
10,584 Sprint Corp. 812,322
15,000 Swisscom AG, ADR (Switzerland)* 504,375
-----------
6,611,222
-----------
Utilities -- 1.8%
9,000 CMS Energy Corp. 396,562
6,500 Duke Energy Corp. 420,469
10,100 FPL Group Inc. 631,881
11,500 LG&E Energy Corp. 303,313
10,000 Pinnacle West Capital Corp. 438,125
-----------
2,190,350
-----------
Total Common Stock 56,298,773
-----------
(Cost $41,509,343)
Rights -- 0.0%
--------------
Computers/Computer Hardware -- 0.0%
7,200 Texas Instruments Inc., Poison Pill,
Expires 06/18/08 0
-----------
(Cost $0)
</TABLE>
See notes to financial statements.
34
<PAGE>
Chase Vista Balanced Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares Issuer Value
- -----------------------------------------------------------------------
Long-Term Investments -- (continued)
- -----------------------------------------------------------------------
Convertible Preferred Stock -- 1.0%
-----------------------------------
<S> <C> <C>
Financial Services -- 0.6%
2,000 American General Delaware, $3.00,
Ser. A $ 173,000
4,500 K-Mart Financing Inc., 7.75%,
06/15/16 Series 249,469
7,000 Suiza Capital Trust Co., 5.50%,
04/01/28 Series # 227,500
-----------
649,969
-----------
Utilities -- 0.4%
6,000 Houston Industries, Inc., 7.00%,
07/01/00 Series 486,375
-----------
Total Convertible Preferred Stock 1,136,344
-----------
(Cost $1,032,458)
Principal
Amount
Corporate Notes & Bonds -- 9.4%
-------------------------------
Banking -- 0.5%
$ 600,000 First Union Corp., 6.40%,
04/01/08 621,498
-----------
Consumer Products -- 0.8%
930,000 Procter & Gamble Co., 5.25%,
09/15/03 945,680
-----------
Diversified -- 0.6%
650,000 Tyco International Group, SA
(Luxemburg), # 5.88%,
11/01/04 653,250
-----------
Entertainment/Leisure -- 0.8%
825,000 Time Warner Inc., 7.75%,
06/15/05 902,542
-----------
Financial Services -- 1.0%
600,000 Ford Motor Credit Co., 5.13%,
10/15/01 622,458
600,000 Hartford Financial Services Group,
6.38%, 11/01/08 602,250
-----------
1,224,708
-----------
</TABLE>
See notes to financial statements.
35
<PAGE>
Chase Vista Balanced Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------------
<S> <C> <C>
Food/Beverage Products -- 1.3%
$ 1,000,000 Campbell Soup Co., 4.75%,
10/01/03 $ 992,000
500,000 Kellogg Co., 4.88%, 10/15/05 492,640
----------
1,484,640
----------
Industrial Components -- 0.9%
1,000,000 Raytheon Corp., 5.95%,
03/15/01 1,012,480
----------
Retailing -- 0.8%
500,000 Dayton Hudson Corp., 6.40%,
02/15/03 518,480
500,000 Kroger Co., 6.38%, 03/01/08 498,895
----------
1,017,375
----------
Telecommunications -- 0.9%
480,000 GTE Northwest Inc., 5.55%,
10/15/08 474,667
585,000 Worldcom, Inc., 6.13%, 08/15/01 598,174
----------
1,072,841
----------
Utilities -- 1.8%
2,000,000 Texas Utilities Electric, Capital V,
8.18%, 01/30/37 2,157,480
----------
Total Corporate Notes & Bonds 11,092,494
----------
(Cost $10,858,976)
Convertible Corporate Notes & Bonds -- 1.2%
-------------------------------------------
Computers/Computer Hardware -- 0.3%
100,000 EMC Corp., # 3.25%, 03/15/02 290,000
----------
Environmental Services -- 0.2%
250,000 Waste Management Inc., 4.00%,
02/01/02 286,562
----------
Health Care/Health Care Services -- 0.6%
150,000 Alternative Living Services, # 6.75%,
06/30/06 202,500
</TABLE>
See notes to financial statements.
36
<PAGE>
Chase Vista Balanced Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- --------------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------------
<S> <C> <C>
Assisted Living Concepts Inc.,
$ 300,000 5.63%, 05/01/03 $ 221,625
400,000 6.00%, 11/01/02 333,436
-----------
757,561
-----------
Manufacturing -- 0.1%
150,000 Tower Automotive, Inc., # 5.00%,
08/01/04 151,500
-----------
Total Convertible Corporate Notes 1,485,623
& Bonds (Cost $1,350,000) -----------
Mortgage Backed Securities -- 10.9%
-----------------------------------
Residential Mortgage Backed Pass Through
Securities -- 1.7%
903,002 Federal Home Loan Mortgage Corp.,
Gold, Pool G10597, 6.50%,
08/01/10 918,805
502,186 Federal National Mortgage
Association, Pool 100156, 12.50%,
06/15/19 577,810
498,013 Government National Mortgage
Association, Pool 780508, 8.00%,
11/15/24 517,619
-----------
2,014,234
-----------
Collateralized Mortgage Obligations -- 6.9%
5,212,000 GE Capital Mortgage Services, Inc.,
Ser. 1998-13, Class A10 5.61%,
11/25/98 5,202,254
1,500,000 Ocwen Mortgage Loan Asset Backed
Certification, Ser. 1998-OFS1,
Class M1, FRN 5.69%, 11/26/98 1,499,070
1,000,000 Structured Asset Securities Corp., Ser.
1998-8, Class M2, FRN, 5.82%,
11/26/98 963,750
500,000 Willowbrook Finance Corp., Ser.
1997-1, Class B, # FRN 5.69%,
11/16/98 494,690
-----------
8,159,764
-----------
</TABLE>
See notes to financial statements.
37
<PAGE>
Chase Vista Balanced Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
Commercial Mortgage Backed Securities -- 2.3%
$ 750,000 DLJ Mortgage Acceptance Corp., Ser.
1997-CF2, Class A1B # 6.82%,
09/15/07 $ 784,200
1,928,016 GS Mortgage Securities Corp. II, Ser.
1998-GLII, Class A1, 6.31%,
04/13/31 1,969,082
-----------
2,753,282
-----------
Total Mortgage Backed Securities 12,927,280
(Cost $12,924,377) -----------
Asset Backed Securities -- 2.0%
-------------------------------
1,500,000 Citibank Credit Card Master Trust I,
Ser. 1996-5, Class B, FRN, 5.78%,
12/15/98 1,481,250
500,000 Citibank Credit Card Master Trust,
Ser. 1998-2A, 6.05%, 01/15/10 502,500
433,199 Mid-State Trust, Ser. 6, Class A4,
7.79%, 07/01/35 434,282
-----------
Total Asset Backed Securities 2,418,032
(Cost $2,437,003) -----------
U. S. Treasury Securities -- 21.7%
----------------------------------
U. S. Treasury Notes & Bonds,
5,000,000 4.50%, 09/30/00 5,026,550
4,500,000 5.25%, 08/15/03 4,695,480
1,000,000 5.63%, 05/15/08 1,077,970
4,790,000 5.88%, 11/15/05 5,191,164
1,850,000 6.13%, 08/15/07 2,042,511
3,100,000 6.13%, 11/15/27 3,488,461
2,000,000 7.25%, 05/15/16 2,432,500
1,200,000 8.75%, 08/15/20 1,710,372
-----------
Total U. S. Treasury Securities 25,665,008
(Cost $24,786,176) -----------
</TABLE>
See notes to financial statements.
38
<PAGE>
Chase Vista Balanced Fund
Portfolio of Investments October 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
U. S. Government Agency Obligations -- 1.3%
-------------------------------------------
<S> <C> <C>
$ 500,000 Federal Home Loan Mortgage
Association, 5.13%, 10/15/08 $ 497,090
1,000,000 Federal National Mortgage
Association, 5.75%, 02/15/08 1,039,370
------------
Total U. S. Government Agency
Obligations 1,536,460
(Cost $1,481,139)
==================================================================
Total Long-Term Investments 112,560,014
(Cost $96,379,472)
- ------------------------------------------------------------------
Short-Term Investments -- 4.2%
- ------------------------------------------------------------------
U. S. Treasury Securities -- 0.0%
---------------------------------
25,000 U. S. Treasury Bill, 4.88%, 11/27/98 24,916
(Cost $24,916) ------------
U. S. Government Agency Obligations -- 4.2%
-------------------------------------------
4,997,000 Federal Home Loan Bank, Discount
Note, 5.40%, 11/02/1998 4,997,000
(Cost $4,997,000)
==================================================================
Total Short-Term Investments 5,021,916
(Cost $5,021,916)
==================================================================
Total Investments -- 99.2% $117,581,930
(Cost $101,401,388)
==================================================================
</TABLE>
Index
* -- Non-income producing security.
# -- Security may only be sold to qualified institutional buyers.
ADR -- American Depository Receipt.
FRN -- Floating Rate Note: The maturity date shown is the next interest reset
date; the rate shown is the rate in effect at October 31, 1998.
See notes to financial statements.
39
<PAGE>
Chase Vista Mutual Funds
Statement of Assets and Liabilities October 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small Cap Large Cap
Equity Equity Balanced
Fund Fund Fund
--------------- ----------------- -----------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value (Note 1) $468,451,577 $177,237,988 $117,581,930
Cash ..................................... 8,532 7,586 3,434
Receivables:
Investment securities sold ............... 128,121 -- 1,452,850
Interest and dividends ................... 269,561 128,138 692,956
Fund shares sold ......................... 370,108 402,838 314,146
Other assets ............................. 15,326 2,181 1,438
------------ ------------ ------------
Total assets .......................... 469,243,225 177,778,731 120,046,754
------------ ------------ ------------
LIABILITIES
Payables:
Investment securities purchased ......... 1,345,626 716,089 1,248,198
Trust shares redeemed ................... 139,428 168,450 33,688
Accrued liabilities: (Note 2)
Investment advisory fees ................ 236,287 -- 48,398
Administration fees ..................... 54,528 7,051 14,519
Shareholder servicing fees .............. 18,727 7,051 10,932
Distribution fees ....................... 72,750 15,679 33,576
Custodian ............................... 25,565 17,691 13,634
Other ................................... 266,008 225,269 107,399
------------ ------------ ------------
Total Liabilities ..................... 2,158,919 1,157,280 1,510,344
------------ ------------ ------------
NET ASSETS:
Paid in capital .......................... 396,106,898 125,865,190 97,489,957
Accumulated undistributed net
investment income (loss) ................ (13,591) 191,919 40,151
Accumulated undistributed net
realized gain on investment and
futures transactions .................... 3,756,396 11,144,707 4,825,760
Net unrealized appreciation of
investments and futures ................. 67,234,603 39,419,635 16,180,542
------------ ------------ ------------
Total Net Assets ........................ $467,084,306 $176,621,451 $118,536,410
============ ============ ============
Shares of beneficial interest
outstanding ($.001 par value;
unlimited number of shares
authorized):
Class A Shares .......................... 6,534,894 3,294,163 6,160,931
Class B Shares .......................... 4,000,732 641,118 1,540,455
Class I Shares .......................... 12,341,194 7,743,402 --
Net Asset Value:
Class A Shares (and redemption
price) .................................. $ 20.40 $ 15.09 $ 15.44
Class B Shares* ......................... $ 19.91 $ 15.02 $ 15.19
Class I Shares .......................... $ 20.59 $ 15.15 $ --
Class A Maximum Public Offering
Price Per Share
(net asset value /94.25% of net
asset value per share) .................. $ 21.64 $ 16.01 $ 16.38
============ ============ ============
Cost of Investments ...................... $401,216,974 $137,818,353 $101,401,388
============ ============ ============
</TABLE>
- --------------
*Redemptions may be subject to contingent deferred sales charge.
See notes to financial statements.
40
<PAGE>
Chase Vista Mutual Funds
Statement of Operations For the year ended October 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small Cap Large Cap
Equity Equity Balanced
Fund Fund Fund
----------------- --------------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend ............................... $ 2,818,313 $ 2,136,195 $ 859,391
Interest ............................... 2,545,403 705,750 3,387,780
Foreign taxes withheld ................. (13,499) (11,165) (4,670)
------------ ----------- ----------
Total investment income ............... 5,350,217 2,830,780 4,242,501
------------ ----------- ----------
EXPENSES: (Note 2)
Investment advisory fees ............... 3,688,998 684,337 566,217
Administration fees .................... 851,307 256,626 169,865
Shareholder servicing fees ............. 1,076,021 427,710 283,108
Distribution fees ...................... 1,145,297 177,325 383,032
Custodian fees ......................... 126,063 86,088 89,695
Printing and postage ................... 90,219 24,191 18,397
Professional fees ...................... 52,999 31,832 29,259
Registration costs ..................... 74,690 50,931 23,644
Transfer agent fees .................... 596,014 136,515 149,718
Trustees fees and expenses ............. 28,377 8,554 5,662
Other .................................. 29,346 25,924 4,675
------------ ----------- ----------
Total expenses ....................... 7,759,331 1,910,033 1,723,272
------------ ----------- ----------
Less amounts waived (Note 2E) ............ 296,699 855,420 171,504
------------ ----------- ----------
Net expenses ........................... 7,462,632 1,054,613 1,551,768
------------ ----------- ----------
Net investment income (loss) ........... (2,112,415) 1,776,167 2,690,733
------------ ----------- ----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments ............................ 2,571,616 11,169,672 4,809,769
Futures transactions ................... 625,084 -- (2,975)
Change in net unrealized appreciation/
depreciation on:
Investments ............................ (60,736,689) 10,838,367 2,405,815
Futures transactions ................... 580,807 -- --
------------ ----------- ----------
Net realized and unrealized gain (loss)
on investments .......................... (56,959,182) 22,008,039 7,212,609
------------ ----------- ----------
Net increase (decrease) in net assets from
operations .............................. $(59,071,597) $23,784,206 $9,903,342
============ =========== ==========
</TABLE>
See notes to financial statements.
41
<PAGE>
Chase Vista Mutual Funds
Statement of Changes in Net Assets For the years ended October 31,
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small Cap
Equity Fund
---------------------------------
1998 1997
----------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) .................................. $ (2,112,415) $ (930,390)
Net realized gain on investments and futures transactions ..... 3,196,700 16,868,259
Change in net unrealized appreciation/depreciation on
investments and futures ...................................... (60,155,882) 88,223,008
--------------- ------------
Increase (decrease) in net assets from operations ............. (59,071,597) 104,160,877
--------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1H):
Net investment income ......................................... -- (742)
Net realized gain on investment transactions .................. (15,819,092) (4,228,732)
--------------- ------------
Total dividends and distributions ............................. (15,819,092) (4,229,474)
--------------- ------------
Increase from capital share transactions (Note 5) ............. (39,485,935) 212,503,094
--------------- ------------
Total increase (decrease) in net assets ...................... (114,376,624) 312,434,497
NET ASSETS:
Beginning of period ........................................... 581,460,930 269,026,433
--------------- ------------
End of period ................................................. $ 467,084,306 $581,460,930
=============== ============
<CAPTION>
Large Cap
Equity Fund Balanced Fund
------------------------------- -------------------------------
1998 1997 1998 1997
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) .................................. $ 1,776,167 $ 1,430,147 $ 2,690,733 $ 2,362,950
Net realized gain on investments and futures transactions ..... 11,169,672 17,625,501 4,806,794 6,918,152
Change in net unrealized appreciation/depreciation on
investments and futures ...................................... 10,838,367 11,620,756 2,405,815 6,945,972
------------- ------------- ------------ ------------
Increase (decrease) in net assets from operations ............. 23,784,206 30,676,404 9,903,342 16,227,074
------------- ------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1H):
Net investment income ......................................... (1,753,386) (1,448,243) (2,787,063) (2,286,310)
Net realized gain on investment transactions .................. (17,523,529) (15,240,116) (6,829,329) (3,997,114)
------------- ------------- ------------ ------------
Total dividends and distributions ............................. (19,276,915) (16,688,359) (9,616,392) (6,283,424)
------------- ------------- ------------ ------------
Increase from capital share transactions (Note 5) ............. 16,281,433 34,165,364 9,837,220 33,498,944
------------- ------------- ------------ ------------
Total increase (decrease) in net assets ...................... 20,788,724 48,153,409 10,124,170 43,442,594
NET ASSETS:
Beginning of period ........................................... 155,832,727 107,679,318 108,412,240 64,969,646
------------- ------------- ------------ ------------
End of period ................................................. $ 176,621,451 $ 155,832,727 $118,536,410 $108,412,240
============= ============= ============ ============
</TABLE>
See notes to financial statements.
42
<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.
Small Cap Equity Fund ("CVSCEF"), Large Cap Equity Fund ("CVLCEF") (formerly
Vista Equity Fund) and Balanced Fund ("CVBAL"), collectively, the "Funds", are
separate series of The Trust. The Funds offer various classes of shares as
follows:
<TABLE>
<CAPTION>
Fund Classes Offered
- -------- --------------------------------
<S> <C>
CVSCEF Class A, Class B, Institutional
CVLCEF Class A, Class B, Institutional
CVBAL Class A, Class B
</TABLE>
Class A shares generally provide for a front-end sales charge while Class B
shares provide for a contingent deferred sales charge. All classes of shares
have equal rights as to earnings, assets and voting privileges except that each
class may bear different distribution fees and each class has exclusive voting
rights with respect to its distribution plan. No sales charges are assessed with
respect to the Institutional Class ("Class I").
The following is a summary of significant accounting policies followed by the
Funds:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
A. 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 the 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 a
time of purchase are valued, through the 61st day prior to maturity, at
market value based on quotations obtained from market makers or other
appropriate sources; thereafter, the value on the 61st day is amortized on
a straight-line basis over the remaining number of days to maturity.
Short-term investments with 60 days or less to maturity at time of purchase
are valued at amortized cost, which approximates market. Portfolio
securities for which there are no such quotations or valuations are valued
at fair value as determined in good faith by or at the direction of the
Trustees.
B. Repurchase agreements -- It is the Trust's policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government Agency
securities. All collateral is held by the Trust's custodian bank,
subcustodian, or a bank with which the custodian bank has entered into a
subcustodian agreement, or is segregated in the Federal Reserve Book Entry
System. In connection with transactions in repurchase agreements, if the
seller defaults and the value of the collateral declines or if the seller
enters an insolvency proceeding, realization of the collateral by the Trust
may be delayed or limited.
C. Futures contracts -- When a Fund enters into a futures contract, it
makes an initial margin deposit in a segregated account, either in cash or
liquid securities. Thereafter, the futures contract is marked to market and
the fund makes (or receives) additional cash payments daily to the broker.
Changes in the value of the contract are recorded as unrealized
appreciation/depreciation until the contract is closed or settled.
43
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
The Funds invest in stock index futures contracts for the purpose of hedging
the Fund against share price volatility, which purpose may or may not be
achieved. When the Fund is not fully invested in the securities market, it
may enter into "long" positions in futures or options contracts in order to
gain rapid market exposure that may in part or entirely offset increases in
the cost of securities intended for purchase.
Use of short futures contracts subjects the Funds to unlimited risk of loss.
Use of long futures contracts subjects the Funds to risk of loss in excess of
amounts shown on the Statement of Assets and Liabilities, up to the amount of
the nominal value of the futures contracts.
The Fund may enter into futures contracts only on exchanges or boards of
trade. The exchange or board of trade acts as the counterparty to each
futures transaction, therefore, the Fund's credit risk is limited to failure
of the exchange or board of trade. As of October 31, 1998, the Funds had no
outstanding futures contracts.
D. 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.
E. Dollar rolls -- CVBAL enters into dollar rolls in which the Fund sells
mortgage-backed securities for delivery in the current month and
simultaneously contracts to repurchase substantially similar (same type,
coupon and maturity) securities on a specified future date. During the roll
period, the Fund forgoes principal and interest paid on the securities. The
Fund is compensated by the interest earned on the cash proceeds of the
initial sale and a fee earned for entering into the roll transaction. Income
is recognized over the duration of the roll transaction.
F. Organization costs -- Organization and initial registration costs incurred
in connection with establishing the Funds have been deferred and are being
amortized on a straight-line basis over a sixty month period beginning at the
commencement of operations of each Fund.
G. 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.
H. Distributions to shareholders -- Dividends and distributions paid to
shareholders are recorded on the ex-dividend date. The amount of dividends
and distributions from net investment income and net realized capital gains
is determined in accordance with Federal income tax regulations, which may
differ from generally accepted accounting principles. To the extent these
"book/tax" differences are permanent in nature, (i.e., that they result from
other than timing of recognition -- "temporary differences") such amounts are
reclassified within the capital accounts based on their Federal tax-basis
treatment. The reclassification for VSCEF relates primarily to the character
for tax purposes of current year net operating loss; paid in capital was
decreased by $2,136,652, accumulated net investment income was increased by
$2,093,254 and undistributed net realized gain/loss was increased by $43,398.
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.
I. Expenses -- Expenses directly attributable to a Fund are charged to that
Fund; other expenses are allocated proportionately among each Fund within the
Trust in
44
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
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 Funds. Chase is a direct wholly-owned subsidiary of
The Chase Manhattan Corporation. As Investment Advisor, Chase supervises the
investments of the Funds and for such services is paid a fee. The fee is
computed daily and paid monthly at an annual rate equal to 0.50% for CVBAL,
0.65% for CVSCEF and 0.40% for CVLCEF of the average daily net assets. 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 adviser, is the
sub-investment adviser to each Fund pursuant to a Sub-Investment Advisory
Agreement between CAM and Chase. CAM is a wholly owned subsidiary of Chase
and is entitled to receive a fee, payable by Chase from its advisory fee, at
an annual rate equal to 0.20% of CVLCEF; 0.25% of CVBAL; and 0.30% of
CVSCEF's of average daily net assets.
B. Shareholder servicing fees -- The Trust has adopted an Administrative
Services Plan which, among other things, provides that the Trust on behalf of
the Funds may obtain the services of one or more Shareholder Servicing
Agents. For its services, the Shareholder Servicing Agents receive a fee that
is computed daily and paid monthly at an annual rate equal to 0.25% of the
average daily net assets of each of the classes of the funds with the
exception of the Class A Shares of the CVSCEF. The CVSCEF is charged a fee
from non-affiliated shareholder servicing agents not to exceed 0.25% of the
net assets of the Class. For the year ended October 31, 1998, Chase's
Shareholder Servicing charges amounted to: CVSCEF: $1,024,164, CVLCEF:
$427,710 and CVBAL: $283,108; before waivers.
The Shareholder Servicing Agents have voluntarily waived all or a portion of
their fees as outlined in Note 2.E. below.
C. Distribution and sub-administration fees -- Pursuant to a Distribution and
Sub- Administration Agreement, Vista Fund Distributors, Inc. (the
"Distributor"), a wholly owned subsidiary of The BISYS Group, Inc., acts as
the Trust's exclusive underwriter and promotes and arranges for the sale of
each Fund's shares. In addition, the Distributor provides certain
sub-administration services to the Trust, including providing officers,
clerical staff and office space for an annual fee of 0.05% of the average
daily net assets of each Fund.
The Trustees have adopted Distribution Plans (the "Distribution Plans") for
Class A and B for the Funds in accordance with Rule 12b-1 under the 1940 Act.
There is no Distribution Plan for the Institutional Classes. The Class A
Distribution Plans provide that each Fund shall pay distribution fees,
including payments to the Distributor, at annual rates not to exceed 0.25% of
the average daily net assets of the Class A Shares of each Fund 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.
D. Administration fee -- Pursuant to an Administration Agreement, Chase (the
"Administrator") provides certain administration services to the Trust. For
these services and facilities, the Administrator receives from the Funds a
fee computed at the annual rate equal to 0.10% of the respective Fund's
average daily net assets.
45
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
The Administrator voluntarily waived a portion of their fees as outlined in
Note 2.E. below.
E. Waivers of fees -- For the year ended October 31, 1998, the Investment
Advisor, Shareholder Servicing Agent and Administrator voluntarily waived
fees for each of the Funds as follows:
<TABLE>
<CAPTION>
Fee CVSCEF CVLCEF CVBAL
--- -------- -------- --------
<S> <C> <C> <C>
Investment Advisory ........... -- $684,337 --
Shareholder servicing ......... $296,699 -- $171,504
Administration ................ -- 171,083 --
-------- -------- --------
Total ........................ $296,699 $855,420 $171,504
-------- -------- --------
</TABLE>
F. Other -- Certain officers of the Trust are officers of Vista Fund
Distributors, Inc. or of its parent corporation, BISYS.
Chase provides portfolio accounting and custody services for the Funds.
Compensation for such services is presented in the Statement of Operations as
custodian fees.
3. Investment Transactions -- For the year ended October 31, 1998, purchases and
sales of investments (excluding short-term investments) were as follows:
<TABLE>
<CAPTION>
CVSCEF CVLCEF CVBAL
------------ ------------- ------------
<S> <C> <C> <C>
Purchases (excluding
U.S. Government) .................... $382,926,888 $112,537,559 $49,960,394
Sales (excluding
U.S. Government) .................... 413,911,700 114,345,833 58,866,578
Purchases of U.S.Government .......... -- -- 46,407,330
Sales of U.S. Government ............. -- -- 36,300,102
</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>
CVSCEF CVLCEF CVBAL
------------ ----------- -----------
<S> <C> <C> <C>
Aggregate cost ...................... $ 401,216,974 $137,818,353 $101,401,388
------------- ------------ ------------
Gross unrealized appreciation ....... 90,374,297 $ 43,364,818 17,873,002
Gross unrealized depreciation ....... (23,139,694) (3,945,183) (1,692,460)
------------- ------------ ------------
Net unrealized appreciation ......... $ 67,234,603 $ 39,419,635 $ 16,180,542
============= ============ ============
</TABLE>
5. Transactions in Shares of Beneficial Interest -- Transactions in Shares of
Beneficial Interest were as follows:
<TABLE>
<CAPTION>
Small Cap Equity Fund
--------------------------------------------------------------
Year Ended October 31,
1998 1997
-------------------------------- -----------------------------
Amount Shares Amount Shares
---------------- --------------- ----------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold ....................... $ 74,349,039 3,262,043 $105,674,550 5,216,718
Shares issued in reinvestment
of distributions ................. 3,929,280 178,929 1,890,293 94,657
Shares redeemed ................... (98,193,570) (4,287,581) (112,944,625) (5,475,143)
------------ ---------- ------------ ----------
Net increase (decrease) in
Trust shares outstanding ......... $(19,915,251) (846,609) $ (5,379,782) (163,768)
============ ========== ============ ==========
</TABLE>
46
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small Cap Equity Fund
------------------------------------------------------------
Year Ended October 31,
1998 1997
--------------------------- ---------------------------
Amount Shares Amount Shares
------------- ---------- ------------ ---------
<S> <C> <C> <C> <C>
Class B
Shares sold ....................... $ 8,220,098 358,470 $25,800,141 1,293,773
Shares issued in reinvestment
of distributions ................. 2,572,707 119,272 1,168,830 59,121
Shares redeemed ................... (17,767,758) (804,511) (16,936,060) (851,909)
----------- -------- ----------- ---------
Net increase (decrease) in
Trust shares outstanding ......... $(6,974,953) (326,769) $10,032,911 500,985
=========== ======== =========== =========
</TABLE>
<TABLE>
<CAPTION>
Small Cap Equity Fund
-------------------------------------------------------------
Year Ended October 31,
1998 1997
--------------------------- ----------------------------
Amount Shares Amount Shares
------------- ---------- ------------ ----------
<S> <C> <C> <C> <C>
Institutional Class
Shares sold ........................$ 19,274,068 839,032 $219,344,013 10,818,892
Shares issued in reinvestment
of distributions .................. 8,324,678 376,683 803,425 40,111
Shares redeemed .................... (40,194,477) (1,826,733) (12,297,473) (587,990)
------------- ---------- ------------ ----------
Net increase (decrease) in
Trust shares outstanding ..........$ (12,595,731) (611,018) $207,849,965 10,271,013
============= ========== ============ ==========
</TABLE>
<TABLE>
<CAPTION>
Large Cap Equity Fund
------------------------------------------------------------
Year Ended October 31,
1998 1997
--------------------------- ---------------------------
Amount Shares Amount Shares
------------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
Class A
Shares sold .................. $ 20,774,781 1,394,378 $ 38,863,393 2,628,815
Shares issued in reinvestment
of distributions ............ 4,362,391 320,637 1,310,830 109,871
Shares redeemed .............. (19,732,258) (1,353,516) (6,429,036) (436,066)
------------- ---------- ------------ ---------
Net increase (decrease) in
Trust shares outstanding .... $ 5,404,914 361,499 $ 33,745,187 2,302,620
============= ========== ============ =========
</TABLE>
<TABLE>
<CAPTION>
Large Cap Equity Fund
----------------------------------------------------------
Year Ended October 31,
1998 1997
------------------------- ------------------------
Amount Shares Amount Shares
---------- -------- ---------- -------
<S> <C> <C> <C> <C>
Class B
Shares sold ....................... $5,130,284 351,533 $5,035,390 384,285
Shares issued in reinvestment
of distributions ................. 574,307 42,571 79,437 6,640
Shares redeemed ................... (1,669,274) (114,386) (720,413) (52,633)
---------- -------- ---------- -------
Net increase (decrease) in
Trust shares outstanding ......... $4,035,317 279,718 $4,394,414 338,292
========== ======== ========== =======
</TABLE>
47
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Large Cap Equity Fund
-----------------------------------------------------------------
Year Ended October 31,
1998 1997
-------------------------------- --------------------------------
Amount Shares Amount Shares
---------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Institutional Class
Shares sold ....................... $ 25,939,264 1,759,649 $ 20,757,456 1,535,702
Shares issued in reinvestment
of distributions ................. 6,523,690 476,579 7,345,048 617,358
Shares redeemed ................... (25,621,752) (1,697,309) (32,076,741) (2,409,324)
------------- ---------- ------------- ----------
Net increase (decrease) in
Trust shares outstanding ......... $ 6,841,202 538,919 $ (3,974,237) (256,264)
============= ========== ============= ==========
</TABLE>
<TABLE>
<CAPTION>
Balanced Fund
---------------------------------------------------------------
Year Ended October 31,
1998 1997
-------------------------------- ------------------------------
Amount Shares Amount Shares
---------------- --------------- ---------------- -------------
<S> <C> <C> <C> <C>
Class A
Shares sold ..................... $ 28,040,742 1,822,250 $ 36,446,654 2,510,736
Shares issued in reinvestment
of distributions ............... 8,006,871 537,508 5,327,049 390,365
Shares redeemed ................. (34,208,904) (2,229,933) (12,603,017) (863,052)
------------- ---------- ------------- ---------
Net increase (decrease) in
Trust shares outstanding ....... $ 1,838,709 129,825 $ 29,170,686 2,038,049
============= ========== ============= =========
</TABLE>
<TABLE>
<CAPTION>
Balanced Fund
-----------------------------------------------------------------
Year Ended October 31,
1998 1997
------------------------------- -------------------------------
Amount Shares Amount Shares
--------------- ------------- --------------- -------------
<S> <C> <C> <C> <C>
Class B
Shares sold ....................... $9,997,619 648,234 $5,622,984 394,960
Shares issued in reinvestment
of distributions ................. 1,252,701 85,330 826,755 61,505
Shares redeemed ................... (3,251,809) (210,278) (2,121,481) (150,183)
---------- -------- ---------- --------
Net increase (decrease) in
Trust shares outstanding ......... $7,998,511 523,286 $4,328,258 306,282
========== ======== ========== ========
</TABLE>
6. Retirement Plan -- The funds have adopted an unfunded noncontributory defined
benefit pension plan covering all independent trustees of the Funds who will
have served as an independent trustee for at least five years at the time of
retirement. Benefits under this plan are based on compensation and years of
service. Pension expenses for the 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 in the Statement of Assets and
Liabilities were as follows:
<TABLE>
<CAPTION>
Accrued
Pension Pension
Expenses Liability
-------- ---------
<S> <C> <C>
VSCEF ......... $9,503 $26,415
VLCEF ......... 2,516 8,773
VBAL .......... 1,767 5,744
</TABLE>
48
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
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 anytime
during the year.
49
<PAGE>
Chase Vista Mutual Funds
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small Cap Equity Fund
-----------------------------------------------------------
Class A Class B
---------------------------------------------- ------------
Year Ended 12/20/94* Year Ended
---------------------------------- Through ------------
10/31/98 10/31/97 10/31/96 10/31/95 10/31/98
-------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ...... $ 23.57 $ 19.19 $ 15.07 $ 10.00 $ 23.19
--------- -------- -------- --------- ----------
Income from Investment Operations:
Net Investment Income ................... (0.114) (0.051) 0.005 0.060 (0.305)
Net Gain or (Losses) in Securities
(both realized and unrealized) ......... (2.416) 4.720 4.328 5.056 (2.335)
--------- --------- -------- --------- ---------
Total from Investment Operations ........ (2.530) 4.669 4.333 5.116 (2.640)
--------- --------- -------- --------- ---------
Less Distributions:
Dividends from Net Investment
Income ................................. -- -- 0.033 0.042 --
Distributions from Capital Gains ........ 0.640 0.290 0.180 0.004 0.640
---------- --------- -------- --------- ----------
Total Distributions ..................... 0.640 0.290 0.213 0.046 0.640
---------- --------- -------- --------- ----------
Net Asset Value, End of Period ............ $ 20.40 $ 23.57 $ 19.19 $ 15.07 $ 19.91
========== ========= ======== ========= ==========
Total Return (1) (10.93%) 24.61% 29.06% 51.25% (11.60%)
Ratios/Supplemental Data:
Net Assets, End of Period (in millions) .. $ 133 $ 174 $ 145 $ 44 $ 80
Ratios to average net assets#:
Ratio of Expenses ........................ 1.38% 1.45% 1.50% 1.51% 2.10%
Ratio of Net Investment Income ........... (0.43%) (0.23%) 0.03% 0.52% (1.15%)
Ratio of Expenses Without Waivers and
Assumption of Expenses .................. 1.38% 1.45% 1.52% 2.67% 2.10%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses (0.43%) (0.23%) 0.01% (0.64%) (1.15%)
Portfolio Turnover Rate ................... 74% 55% 78% 75% 74%
<CAPTION>
Small Cap Equity Fund
------------------------------------------------------------------------
Class B Institutional
------------------------------------ -----------------------------------
Year Ended 03/28/95 Year Ended 05/07/96**
---------------------- Through ---------------------- Through
10/31/97 10/31/96 10/31/95 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 ...... $ 19.00 $ 15.01 $ 11.39 $ 23.71 $ 19.22 $ 18.44
-------- --------- -------- --------- ---------- --------
Income from Investment Operations:
Net Investment Income ................... (0.270) (0.074) (0.018) (0.021) 0.027 0.023
Net Gain or (Losses) in Securities
(both realized and unrealized) ......... 4.754 4.248 3.669 (2.459) 4.753 0.757
--------- --------- -------- --------- ---------- --------
Total from Investment Operations ........ 4.484 4.174 3.651 (2.480) 4.780 0.780
--------- --------- -------- --------- ---------- --------
Less Distributions:
Dividends from Net Investment
Income ................................. -- -- 0.027 -- -- --
Distributions from Capital Gains ........ 0.290 0.180 0.004 0.640 0.290 --
--------- --------- -------- --------- ---------- --------
Total Distributions ..................... 0.290 0.180 0.031 0.640 0.290 --
--------- --------- -------- --------- ---------- --------
Net Asset Value, End of Period ............ $ 23.19 $ 19.00 $ 15.01 $ 20.59 $ 23.71 $ 19.22
========= ========= ======== ========= ========== ========
Total Return (1) 23.84% 28.04% 32.09% (10.64%) 25.15% 4.23%
Ratios/Supplemental Data:
Net Assets, End of Period (in millions) .. $ 100 $ 73 $ 22 $ 254 $ 307 $ 52
Ratios to average net assets#:
Ratio of Expenses ........................ 2.16% 2.22% 2.24% 1.04% 1.10% 1.10%
Ratio of Net Investment Income ........... (0.94%) (0.68%) (0.25%) (0.09%) 0.13% 0.27%
Ratio of Expenses Without Waivers and
Assumption of Expenses .................. 2.16% 2.25% 3.23% 1.13% 1.14% 1.27%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses (0.94%) (0.71)% (1.24%) (0.18%) 0.09% 0.10%
Portfolio Turnover Rate ................... 55% 78% 75% 74% 55% 78%
</TABLE>
- -------
* Commencement of operations.
** Commencement of offering of class of shares.
# Short periods have been annualized.
(1) Total return figures do not include the effect of any sales load.
See notes to financial statements.
50
<PAGE>
Chase Vista Mutual Funds
Financial Highlights (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Large Cap Equity Fund*
------------------------------------------------------------------------
Class A Class B
---------------------------------- -------------------------------------
Year Ended 05/08/96** Year Ended 05/07/96**
--------------------- 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 ....... $ 14.83 $ 13.25 $ 12.06 $ 14.76 $ 13.22 $ 12.06
-------- -------- -------- --------- --------- ---------
Income from Investment Operations:
Net Investment Income .................... 0.118 0.108 0.050 0.054 0.067 0.050
Net Gains or (Losses) In Securities
(both realized and unrealized) .......... 1.918 3.456 1.209 1.914 3.423 1.187
-------- -------- -------- --------- --------- ---------
Total from Investment Operations ......... 2.036 3.564 1.259 1.968 3.490 1.237
-------- -------- -------- --------- --------- ---------
Less Distributions:
Dividends from Net Investment
Income .................................. 0.118 0.094 0.069 0.051 0.061 0.077
Distributions from Capital Gains ......... 1.658 1.890 -- 1.658 1.890 --
-------- -------- -------- --------- --------- ---------
Total Distributions ...................... 1.776 1.984 0.069 1.709 1.951 0.077
-------- -------- -------- --------- --------- ---------
Net Asset Value, End of Period ............. $ 15.09 $ 14.83 $ 13.25 $ 15.02 $ 14.76 $ 13.22
======== ======== ======== ========= ========= =========
Total Return (1) ........................... 15.15% 30.69% 10.84% 14.71% 30.15% 6.66%
Ratios/Supplemental Data:
Net Assets, End of Period (in millions) $ 50 $ 44 $ 8 $ 10 $ 5 $ 1
Ratios to average net assets#:
Ratio of Expenses ......................... 0.85% 1.13% 1.38% 1.35% 1.59% 1.88%
Ratio of Net Investment Income ............ 0.81% 0.61% 0.84% 0.31% 0.15% 0.14%
Ratio of Expenses Without Waivers
and Assumption of Expenses ............... 1.35% 1.63% 1.87% 1.85% 2.09% 2.38%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses 0.31% 0.11% 0.35% (0.19%) (0.35%) (0.36%)
Portfolio Turnover Rate .................... 72% 72% 89% 72% 72% 89%
<CAPTION>
Large Cap Equity Fund*
-------------------------------------------------------
Institutional Class
-------------------------------------------------------
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 ....... $ 14.85 $ 13.27 $ 12.24 $ 13.16 $ 13.65
-------- -------- -------- -------- --------
Income from Investment Operations:
Net Investment Income .................... 0.176 0.182 0.227 0.277 0.298
Net Gains or (Losses) In Securities
(both realized and unrealized) .......... 1.955 3.470 2.597 1.744 0.263
-------- -------- -------- -------- --------
Total from Investment Operations ......... 2.131 3.652 2.824 2.021 0.561
-------- -------- -------- -------- --------
Less Distributions:
Dividends from Net Investment
Income .................................. 0.173 0.182 0.224 0.282 0.290
Distributions from Capital Gains ......... 1.658 1.890 1.570 2.659 0.761
-------- -------- -------- -------- --------
Total Distributions ...................... 1.831 2.072 1.794 2.941 1.051
-------- -------- -------- -------- --------
Net Asset Value, End of Period ............. $ 15.15 $ 14.85 $ 13.27 $ 12.24 $ 13.16
======== ======== ======== ======== ========
Total Return (1) ........................... 15.82% 31.50% 25.65% 20.41% 4.37%
Ratios/Supplemental Data:
Net Assets, End of Period (in millions) $ 117 $ 107 $ 99 $ 55 $ 68
Ratios to average net assets#:
Ratio of Expenses ......................... 0.47% 0.50% 0.40% 0.31% 0.31%
Ratio of Net Investment Income ............ 1.19% 1.32% 1.86% 2.41% 2.30%
Ratio of Expenses Without Waivers
and Assumption of Expenses ............... 0.97% 1.00% 0.96% 0.90% 0.95%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses 0.69% 0.82% 1.30% 1.82% 1.66%
Portfolio Turnover Rate .................... 72% 72% 89% 45% 53%
</TABLE>
- -------
* Formerly Vista Equity Fund.
** Commencement of offering of class of shares
# Short periods have been annualized.
(1) Total returns figures do not include the effect of any sales load.
See notes to financial statements.
51
<PAGE>
Chase Vista Mutual Funds
Financial Highlights (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Balanced 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 ......... $ 15.41 $ 13.83 $ 12.45 $ 11.09 $ 11.38
-------- -------- -------- -------- ---------
Income from Investment Operations:
Net Investment Income ...................... 0.383 0.392 0.353 0.382 0.356
Net Gains or (Losses) in Securities
(both realized and unrealized) ............ 1.016 2.393 1.692 1.517 (0.187)
-------- -------- -------- -------- ---------
Total from Investment Operations ........... 1.399 2.785 2.045 1.899 0.169
-------- -------- -------- -------- ---------
Less Distributions:
Dividends from Net Investment Income 0.389 0.395 0.345 0.408 0.359
Distributions from Capital Gains ......... 0.980 0.810 0.320 0.131 0.100
-------- -------- -------- -------- ---------
Total Distributions ...................... 1.369 1.205 0.665 0.539 0.459
-------- -------- -------- -------- ---------
Net Asset Value, End of Period ............... $ 15.44 $ 15.41 $ 13.83 $ 12.45 $ 11.09
======== ======== ======== ======== =========
Total Return (1) ............................. 9.60% 21.48% 16.89% 17.70% 1.56%
Ratios/Supplemental Data:
Net Assets, End of Period (in millions) ..... $ 95 $ 93 $ 55 $ 34 $ 22
Ratios to average net assets#:
Ratio of Expenses ........................... 1.25% 1.25% 1.25% 1.06% 0.58%
Ratio of Net Investment Income .............. 2.51% 2.91% 2.97% 3.48% 3.21%
Ratio of Expenses Without Waivers and
Assumption of Expenses ..................... 1.44% 1.52% 1.78% 2.20% 2.20%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses ........ 2.32% 2.64% 2.44% 2.34% 1.59%
Portfolio Turnover Rate ...................... 94% 136% 149% 68% 77%
<CAPTION>
Balanced Fund
-------------------------------------------------------
Class B
-------------------------------------------------------
Year Ended 11/04/93**
------------------------------------------- Through
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 ......... $ 15.21 $ 13.70 $ 12.36 $ 11.03 $ 11.22
-------- -------- -------- -------- ---------
Income from Investment Operations:
Net Investment Income ...................... 0.276 0.319 0.283 0.309 0.345
Net Gains or (Losses) in Securities
(both realized and unrealized) ............ 1.003 2.326 1.656 1.502 (0.117)
-------- -------- -------- -------- ---------
Total from Investment Operations ........... 1.279 2.645 1.939 1.811 0.228
-------- -------- -------- -------- ---------
Less Distributions:
Dividends from Net Investment Income 0.319 0.325 0.279 0.131 0.318
Distributions from Capital Gains ......... 0.980 0.810 0.320 0.350 0.100
-------- -------- -------- -------- ---------
Total Distributions ...................... 1.299 1.135 0.599 0.481 0.418
-------- -------- -------- -------- ---------
Net Asset Value, End of Period ............... $ 15.19 $ 15.21 $ 13.70 $ 12.36 $ 11.03
======== ======== ======== ======== =========
Total Return (1) ............................. 8.89% 20.55% 16.10% 16.93% 2.17%
Ratios/Supplemental Data:
Net Assets, End of Period (in millions) ..... $ 23 $ 15 $ 10 $ 6 $ 4
Ratios to average net assets#:
Ratio of Expenses ........................... 1.93% 2.04% 2.00% 1.82% 1.50%
Ratio of Net Investment Income .............. 1.81% 2.26% 2.21% 2.68% 2.46%
Ratio of Expenses Without Waivers and
Assumption of Expenses ..................... 1.93% 2.06% 2.29% 2.72% 2.69%
Ratio of Net Investment Income Without
Waivers and Assumptions of Expenses ........ 1.81% 2.24% 1.92% 1.78% 1.27%
Portfolio Turnover Rate ...................... 94% 136% 149% 68% 77%
</TABLE>
- -------
** Commencement of offering of class of shares
# Short periods have been annualized.
(1) Total return figures do not include the effect of any sales load.
See notes to financial statements.
52
<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 Small Cap Equity Fund,
Chase Vista Large Cap Equity Fund and Chase Vista Balanced 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, the changes in each of their net assets for each of the two years in the
period then ended 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
53
<PAGE>
Unaudited
Chase Vista Small Cap Equity Fund
Chase Vista Large Cap Equity Fund
Chase Vista Balanced 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 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, the percentage of distributions eligible for the
dividends received deduction and the long-term capital gains distributed per
share by the Funds:
<TABLE>
<CAPTION>
Federal Home
Chase U.S. Treasury Federal Home Loan Mortgage
Vista Fund Obligations Loan Bank Corporation
- ------------------ --------------- -------------- ---------------
<S> <C> <C> <C>
Small Cap Equity 0.38% 1.53% 5.24%
Large Cap Equity -- 0.25% --
Balanced 19.72% 0.05% 6.33%
<CAPTION>
Long-Term
Government Dividends Capital Gains
Chase Federal National National Mortgage Received Distribution
Vista Fund Mortgage Association Association Deduction Per Share
- ------------------ ---------------------- ------------------- ----------- --------------
<S> <C> <C> <C> <C>
Small Cap Equity 4.54% -- -- $0.64
Large Cap Equity -- -- 47.18% $1.26
Balanced 3.61% 1.11% -- $0.74
</TABLE>
54
<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>
Chase Vista Funds
Fulfillment Center
393 Manley Street
West Bridgewater, MA 02379-1039
(C) The Chase Manhattan Bank, 1998, 1999.
