Chase Vista
Select
Growth & Income Fund
Annual Report
April 30, 1999
<PAGE>
Chase Vista Select Growth and Income Fund
Chairman's Letter
June 1, 1999
Dear Shareholder:
We are pleased to present this semi-annual report for the Chase Vista Select
Growth and Income Fund for the six-month period ended April 30, 1999:
Equities Advance As Economy Shows Strength
Stocks posted solid investment results, as fears of a global economic downturn
waned and domestic market conditions remained positive.
The period began with investors showing optimism for stocks on the heels of the
Federal Reserve Board's decision to cut interest rates in November, its third
rate cut in as many months. In this environment, large and secondary stocks
posted solid returns, which carried the stock market to a double-digit
percentage gain for the calendar year and its best consecutive four-year period
in stock market history.
As 1999 began, investors were concerned that the strength of the U.S. economy
coupled with diminishing fears over a global economic slowdown would cause
interest rates to rise. However, worries over Brazil's fiscal and currency
problems dashed those concerns, enabling domestic equities to continue their
advance.
In February, equities gave back some of those gains, as Brazil's troubles
subsided and a steady stream of stronger-than-expected economic data caused
interest rates to rise markedly. Included among these reports were the lowest
unemployment rate since the 1960s, the best consumer confidence figures ever
released by the Conference Board and a Gross Domestic Product (GDP) report for
the fourth quarter of 1998 that was the best in two years.
Interest rates retreated in March, helping U.S. equity markets rebound. Good
corporate earnings and strong cash flows into mutual funds also bolstered stock
prices. On March 30, the Dow Jones Industrial Average closed above the 10,000
level for the first time ever. In April, stocks continued to climb, with value
stocks posting some of the strongest gains. A spike in interest rates on the
final day of the month, due to a stronger-than-expected first quarter GDP
report, did little to impact equities' solid performance for the period.
Sincerely yours,
Fergus Reid, Chairman
<PAGE>
Chase Vista Select Growth and Income Fund
as of April 30, 1999
(unaudited)
How the Fund Performed
Chase Vista Select Growth and Income Fund, which seeks capital appreciation and
current income by investing primarily in common stocks, had a total return of
16.52% for the six-month period ended April 30, 1999.
How the Fund Was Managed
The Fund benefited from a favorable environment for equities, highlighted by
good corporate earnings and rising consumer confidence. Technology stocks
contributed positively to performance throughout much of the period, despite
some volatility.
Early in the period, our exposure to media stocks proved rewarding. These
securities registered good investment returns as fears of a global economic
slowdown waned following the Federal Reserve Board's third interest-rate cut in
as many months last November. The Fund came under pressure in February because
of rising interest rates. The Fund's defensive stocks helped performance during
this juncture.
In January and March, the Fund enjoyed good returns from consumer cyclicals, as
investors rotated out of high growth, high multiple stocks and into undervalued
stocks. Dayton Hudson and Mirage were among our top performers in this group.
Technology stocks, such as EMC Corp. and Qualcomm, also contributed positively
to our results during this period. In March, Fund management reduced its
exposure to technology as valuations and positive sentiment indicators reached
extreme levels.
Early in 1999, a seasonal rally in industrial cyclicals, such as capital goods
and basic materials, benefited shareholders. The rise in prices was due a robust
U.S. economy and investor optimism over improving economic conditions in Asia.
During this period, we added Allied Signal, Burlington Resources and Boeing. The
Fund's investment in energy stocks also proved rewarding, as these stocks
rallied due to higher oil prices. Finally, the Fund's exposure to mid-cap stocks
contributed positively to performance as the period came to a close.
Where the Fund May Be Headed
Given the improving landscape for corporate earnings in 1999, we expect the
backdrop to remain positive for the stock market for the remainder of 1999. We
remain especially optimistic on the prospects for secondary stocks. The
performance of these stocks are beginning to show marked improvement, as
investors have gravitated toward them due to their attractive valuations and
high relative growth rates. That said, 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. As always, we
will continue to focus on those high-quality securities of well-managed
companies with superior growth prospects compared to the market.
<PAGE>
================================================================================
Chase Vista Select Growth and Income Fund
Statement of Assets and Liabilities April 30, 1999 (unaudited)
(amounts in thousands)
<TABLE>
<S> <C>
ASSETS:
Investments, at value (Note 1) $596,924
Deferred organization costs 17
Other Assets 7
--------
Total Assets ........................................ 596,948
--------
LIABILITIES:
Accrued liabilities: (Note 2)
Administration fees 48
Other 193
--------
Total Liabilities ................................... 241
--------
NET ASSETS:
Paid in capital 490,181
Accumulated undistributed net investment income 323
Accumulated undistributed net realized gain
on investment transactions 25,752
Net unrealized appreciation of investments and futures 80,451
--------
Net Assets .................................................... $596,707
========
Shares of beneficial interest outstanding
($.001 par value; unlimited number of shares authorized): .. 11,827
Net Asset Value
(maximum offering price and redemption price per share)*..... $50.45
--------
</TABLE>
* Net assets / shares outstanding.
See notes to financial statements.
================================================================================
<PAGE>
================================================================================
Chase Vista Select Growth and Income Fund
Statement of Operations
For the six months ended April 30, 1999 (unaudited)
(amounts in thousands)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Investment income from Portfolio $4,254
Foreign taxes withheld (10)
Expenses from Portfolio (1,299)
-------
Total investment income........................... 2,945
-------
EXPENSES: (Note 2)
Administration fees 278
Printing and postage 17
Professional fees 14
Registration costs 3
Transfer agent fees 4
Trustees fees and expenses 8
Other 29
-------
Total expenses.............................. 353
-------
Net investment income ...................... 2,592
-------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 55,784
Change in net unrealized appreciation on investments 26,784
-------
Net realized and unrealized gain on investments 82,568
-------
Net increase in net assets from operations............ $85,160
=======
</TABLE>
See notes to financial statements.
================================================================================
<PAGE>
================================================================================
Chase Vista Select Growth and Income Fund
Statement of Changes in Net Assets
For the periods indicated (unaudited)
(amounts in thousands)
<TABLE>
<CAPTION>
11/01/98 01/09/98*
Through Through
04/30/99 10/31/98
<S> <C> <C>
INCREASE IN NET ASSETS
OPERATIONS:
Net investment income $2,592 $4,711
Net realized gain on investments and futures transactions 55,784 (36,389)
Change in net unrealized appreciation on investments and futures 26,784 53,668
--------------------------
Increase in net assets from operations....................... 85,160 21,990
--------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1):
Net investment income............................................. (2,787) (4,193)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued 6,100 544,707
Dividends reinvested 2,787 4,193
Cost of shares redeemed (12,850) (48,400)
--------------------------
Increase (decrease) from capital share transactions
(Note 5)......................................................... (3,963) 500,500
--------------------------
Total increase in net assets........................... 78,410 518,297
--------------------------
NET ASSETS:
Beginning of period............................................... 518,297 --
--------------------------
End of period.....................................................$596,707 $518,297
==========================
SHARE TRANSACTIONS:
Issued 128 12,943
Reinvested 58 94
Redeemed (271) (1,125)
--------------------------
Change in shares (85) 11,912
==========================
</TABLE>
* Commencement of operations of the Fund.
See notes to financial statements.
================================================================================
<PAGE>
Chase Vista Mutual 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. Chase Vista Select Growth and Income Fund ("CVSGI") or,
the "Fund" is a separate series of the Trust.
The Chase Vista Select Growth and Income Fund utilizes the Master Feeder
structure. The Fund seeks to achieve its investment objective by investing all
of its investable assets in the Growth and Income Portfolio (the "Portfolio")
which, like the Fund, is an open-end management investment company having the
same investment objectives as the Fund. As of April 30, 1999, CVSGI owned 19.9%
of the net assets of the Growth and Income Portfolio. The financial statements
of the Portfolio, including the portfolio of investments, are included elsewhere
in this report and should be read in conjunction with the Financial Statements
of the Fund.
The following is a summary of significant accounting policies followed by the
Fund:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
A. Valuation of investments - Investments are recorded in the Portfolio at
value. Securities of the Portfolio are recorded at value as more fully
discussed in the notes to those financial statements.
B. Investment income and expenses - CVSGI records daily its pro-rata share
of the Portfolio's income, expenses, and realized and unrealized gains
and losses. In addition, the Fund accrues its own expenses daily as
incurred. Realized gains/losses and changes in unrealized
appreciation/depreciation represent the Fund's share of such elements
from the Portfolio.
C. Organization costs - Organization and initial registration costs
incurred in connection with establishing the Fund have been deferred
and are being amortized on a straight line basis over a sixty month
period beginning at the commencement of operations of the Fund.
D. Federal Income Taxes - The Fund is treated as a separate taxable entity
for Federal Income Tax purposes. The Fund's policy is to comply with
the provisions of the Internal Revenue Code applicable to regulated
investment companies and to distribute to shareholders all of its
distributable net investment income, and net realized gain on
investments. In addition, the Fund intends to make distributions as
required to avoid excise taxes. Accordingly, no provisions for Federal
income tax or excise tax are necessary.
E. 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 the Federal Income Tax
regulations, which may differ from generally accepted accounting
principles. To the extent these "book/tax" differences are permanent in
nature, (i.e., that they result from other than timing of recognition -
"temporary differences") such amounts are reclassified within the
capital accounts based on their Federal tax-basis treatment.
Dividends and distributions which exceed net investment income or net realized
capital gains for financial reporting purposes but not for tax purposes are
reported as distributions in excess of net investment income or net realized
capital gains.
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements
- --------------------------------------------------------------------------------
F. Expenses - Expenses directly attributable to the Fund are charged to
the Fund; other expenses are allocated proportionately among each Fund
within the Trust in relation to the net assets of each Fund or on
another reasonable basis.
2. Fees and Other Transactions with Affiliates.
A. 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 BYSIS Group Inc., acts
as the Trust's exclusive underwriter and promotes and arranges for the
sale of the Fund's shares. In addition, the Distributor provides
certain sub-administration services to the Trust, including providing
officers, clerical staff, and office space for an annual fee of 0.05%
of the average daily net assets of the Fund.
B. 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 CVSGI a fee computed at the annual rate equal to 0.05% of the
Fund's average daily net assets.
C. Other - Certain officers of the Trust are officers of Vista Fund
Distributors, Inc. or of its parent corporation, BYSIS.
4. Concentration of Shareholders
At April 30, 1999, all shares outstanding for the Fund are owned by the
participants in the 401(k) Savings Plan of the Chase Manhattan Bank.
5. Retirement Plan
The Fund adopted an unfunded noncontributory defined benefit pension
plan covering all independent Trustees of the Fund who will have served
for at least five years at the time of retirement. Benefits under this
plan are based on compensation and years of service. Pension expenses
of $5,000 for the six month period ended April 30, 1999 are included in
Trustees fees and expenses in the Statement of Operations, and accrued
pension liability of $15,000 is included in Other Accrued liabilities
in the Statement of Assets and Liabilities.
<PAGE>
================================================================================
Chase Vista Select Growth and Income Fund
Financial Highlights
For the periods indicated (unaudited)
<TABLE>
<CAPTION>
11/01/98 01/06/98*
Through Through
04/30/99 10/31/98
--------- ----------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net Asset Value, Beginning of Period................ $43.51 $42.00
------- ------
Income from Investment Operations:
Net investment income......................... 0.22 0.38
Net Gains or Losses in Securities
(both realized and unrealized) .............. 6.96 1.47
------- ------
Total from Investment Operations.......... 7.18 1.85
------- ------
Less Distributions:
Dividends from Net Investment Income........... 0.24 0.34
Distributions from Capital Gains............... -- --
------- ------
Total Distributions........................ 0.24 0.34
------- ------
Net Asset Value, End of Period....................... $50.45 $43.51
======= ======
Total Return 16.52% 9.73%
Ratios / Supplemental Data:
Net Assets, End of Period (000 omitted)........ $597 $518
Ratios to Average Net Assets:#
Ratio of Expenses.......................... 0.59% 0.61%
Ratio of Net Investment Income ............ 0.93% 1.04%
</TABLE>
* Commencement of operations.
# Short periods have been annualized
See notes to financial statements.
================================================================================
<PAGE>
Growth and Income Portfolio
Portfolio of Investments April 30, 1999 (unaudited)
(amounts in thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------------------------------------------------------
Long-Term Investments -- 99.2%
- ----------------------------------------------------------
<S> <C> <C>
Common Stock -- 94.4%
---------------------
Aerospace -- 3.6%
650 Allied-Signal, Inc. $ 38,188
300 Boeing Co. 12,188
500 General Dynamics Corp. 35,125
300 Sundstrand Corp. 21,525
----------
107,026
----------
Airlines -- 1.0%
425 AMR Corp.* 29,670
----------
Automotive -- 1.6%
562 Delphi Automotive Systems Corp. 10,924
600 Ford Motor Co. 38,363
----------
49,287
----------
Banking -- 7.0%
450 Bank of New York Co., Inc. 18,000
500 Bank One Corp. 29,500
514 BankAmerica Corp. 37,043
500 Comerica, Inc. 32,531
400 First Union Corp. 22,150
550 Fleet Financial Group, Inc. 23,684
350 Mellon Bank Corp. 26,009
600 UnionBanCal Corp. 20,475
----------
209,392
----------
Broadcasting -- 1.7%
750 CBS Corp. 34,172
275 Comcast Corp., Special Class A 18,064
----------
52,236
----------
Business Services -- 0.3%
500 Cendant Corp. 9,000
----------
Chemicals -- 1.3%
355 E. I. Du Pont de Nemours and Co. 25,072
300 Rohm & Haas Co. 13,444
----------
38,516
----------
Computer Software -- 1.5%
731 American Management Systems, Inc.* 25,128
</TABLE>
See notes to financial statements.
67
<PAGE>
Growth and Income Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
- --------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
300 Computer Associates International $ 12,806
388 Mastech Corp.* 5,699
---------
43,633
---------
Computers/Computer Hardware -- 1.8%
150 EMC Corp.* 16,341
150 Lexmark International Group, Inc.,
Class A (Germany)* 18,525
300 Sun Microsystems, Inc.* 17,944
---------
52,810
---------
Construction Materials -- 0.8%
850 Masco Corp. 24,969
---------
Consumer Products -- 2.3%
525 Fortune Brands, Inc. 20,738
1,050 Philip Morris Companies, Inc. 36,816
700 Shaw Industries, Inc. 12,688
---------
70,242
---------
Diversified -- 1.1%
400 Tyco International LTD (Bermuda) 32,500
---------
Electronics/Electrical Equipment -- 5.2%
400 Altera Corp. 28,900
400 KLA-Tencor Corp. 19,850
400 Micron Technology, Inc. 14,850
200 Motorola, Inc. 16,025
350 Teradyne Inc.* 16,516
300 Texas Instruments, Inc. 30,637
600 Vitesse Semiconductor Corp.* 27,788
---------
154,566
---------
Entertainment/Leisure -- 1.7%
350 Time Warner, Inc. 24,500
669 Viacom, Inc. Class B* 27,345
---------
51,845
---------
Environmental Services -- 1.7%
900 Waste Management, Inc. 50,850
---------
Financial Services -- 3.8%
300 Ambac Financial Group Inc. 18,112
636 Associates First Capital Corp., Class A 28,183
</TABLE>
See notes to financial statements.
68
<PAGE>
Growth and Income Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
- --------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
500 Freddie Mac $ 31,375
200 Merrill Lynch & Co. 16,787
500 Washington Mutual Inc. 20,563
----------
115,020
----------
Food/Beverage Products -- 2.5%
300 Anheuser-Busch Companies, Inc. 21,937
400 Quaker Oats Co. 25,825
550 Sara Lee Corp. 12,238
717 The Pepsi Bottling Group, Inc. 15,102
----------
75,102
----------
Health Care/Health Care Services -- 4.4%
250 Aetna Inc. 21,922
260 Cigna Corp. 22,669
2,842 HEALTHSOUTH Corp.* 38,185
800 Tenet Healthcare Corp.* 18,900
450 Wellpoint Health Networks, Inc.,
Class A* 31,612
----------
133,288
----------
Hotels/Other Lodging -- 1.3%
500 Mirage Resorts, Inc.* 11,219
2,500 Park Place Entertainment Corp. 27,031
----------
38,250
----------
Insurance -- 4.4%
350 Loews Corp. 25,616
410 Marsh & McLennan Companies, Inc. 31,391
550 Reliastar Financial Corp. 20,212
800 The Allstate Corp. 29,100
200 UNUM Corp. 10,925
260 XL Capital LTD (Bermuda) 15,779
----------
133,023
----------
Machinery & Engineering Equipment -- 0.5%
500 McDermott International, Inc. 14,500
----------
Manufacturing -- 2.0%
678 Ingersoll-Rand Co. 46,875
200 Johnson Controls, Inc. 14,562
----------
61,437
----------
</TABLE>
See notes to financial statements.
69
<PAGE>
Growth and Income Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
- --------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
Metals/Mining -- 2.2%
450 Alcoa Inc. $ 28,012
650 Newmont Mining Corp. 15,641
350 RIO Tinto PLC, ADR (United
Kingdom) 23,844
----------
67,497
----------
Office/Business Equipment -- 0.6%
300 Xerox Corp. 17,625
----------
Oil & Gas -- 9.9%
800 Burlington Resources, Inc. 36,850
310 Chevron Corp. 30,922
1,281 Coastal Corp. 49,006
600 Diamond Offshore Drilling, Inc. 19,837
100 Enron Corp. 7,525
500 Enron Oil & Gas Co. 9,500
1,050 Halliburton Co. 44,756
295 Mobil Corp. 30,901
650 Royal Dutch Petroleum Co., New
York Registered Shares
(Netherlands) 38,147
217 Texaco, Inc. 13,617
600 Tosco Corp. 16,050
----------
297,111
----------
Packaging -- 0.6%
660 Owens-Illinois, Inc.* 19,137
----------
Paper/Forest Products -- 2.5%
1,000 Asia Pulp & Paper Co. LTD ADR
(Singapore) 10,500
500 Boise Cascade Corp. 20,125
300 Weyerhaeuser Co. 20,137
500 Willamette Industries, Inc. 23,375
----------
74,137
----------
Pharmaceuticals -- 3.1%
400 American Home Products Corp. 24,400
808 Pharmacia & Upjohn, Inc. 45,248
475 Schering-Plough Corp. 22,948
----------
92,596
----------
</TABLE>
See notes to financial statements.
70
<PAGE>
Growth and Income Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
- -----------------------------------------------------------
Long-Term Investments -- (continued)
- -----------------------------------------------------------
<S> <C> <C>
Pipelines -- 0.3%
186 Columbia Energy Group, Inc. $ 8,916
----------
Printing & Publishing -- 1.6%
950 New York Times Co., Class A 32,775
500 The News Corporation, Preference
Shares, ADR (Australia) 15,281
----------
48,056
----------
Real Estate Investment Trust -- 2.0%
374 Duke Realty Investments, Inc. 8,784
550 Equity Office Properties Trust 15,159
480 Equity Residential Properties Trust 22,200
525 Public Storage, Inc. 14,634
----------
60,777
----------
Retailing -- 5.9%
300 Circuit City Stores, Inc. 18,450
450 Dayton-Hudson Corp. 30,291
342 Federated Department Stores* 15,968
1,700 K-Mart Corp. 25,287
535 Kroger Co.* 29,057
1,618 Office Depot, Inc.* 35,596
650 TJX Companies, Inc. 21,653
----------
176,302
----------
Shipping/Transportation -- 1.0%
400 Burlington Northern Santa Fe 14,650
250 Union Pacific Corp. 15,000
----------
29,650
----------
Steel -- 0.5%
650 Allegheny Teledyne, Inc. 14,544
----------
Telecommunications -- 4.3%
520 American Tower Corp.* 11,017
398 AT&T Corp. 20,106
600 BellSouth Corp. 26,850
400 GTE Corp. 26,775
350 MCI WorldCom, Inc.* 28,766
150 Sprint Corp. 15,384
----------
128,898
----------
</TABLE>
See notes to financial statements.
71
<PAGE>
Growth and Income Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
- -----------------------------------------------------------
Long-Term Investments -- (continued)
- -----------------------------------------------------------
<S> <C> <C>
Telecommunications Equipment -- 0.9%
700 General Instrument Corp. $ 25,550
---------
Toys & Games -- 0.9%
750 Hasbro, Inc. 25,594
---------
Utilities -- 6.6%
200 AES Corp. 10,000
400 Bell Atlantic Corp. 23,050
400 CMS Energy Corp. 17,600
750 Consolidated Edison, Inc. 34,078
400 DQE, Inc. 16,475
500 FPL Group Inc. 28,187
770 Pinnacle West Capital Corp. 29,886
700 Texas Utilities Co. 27,825
277 Unicom Corp. 10,751
---------
197,852
---------
Total Common Stock 2,831,404
(Cost $2,296,645) ---------
Convertible Preferred Stock -- 3.2%
-------------------------------------
Capital Goods -- 0.6%
300 Sealed Air Corp., $2.00, 04/01/18,
Ser. A 17,625
---------
Manufacturing -- 0.3%
240 Ingersoll-Rand Co., 6.75%,
12/31/49 Ser. 7,785
---------
Telecommunications -- 1.9%
100 Global TeleSystems Group Inc.,
7.25%, 12/31/49 Ser.# 5,525
500 Qwest Trends Trust, 5.75%,
11/17/03 Ser.# 36,625
50 Viacom International (TCI Pacific),
5.00%, 7/31/06 Ser. 15,638
---------
57,788
---------
Utilities -- 0.4%
102 Houston Industries, Inc., 7.00%,
07/01/00 Ser. 12,036
---------
Total Convertible Preferred Stock 95,234
(Cost $59,178) ---------
</TABLE>
See notes to financial statements.
72
<PAGE>
Growth and Income Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
Convertible Corporate Notes & Bonds -- 1.6%
-------------------------------------------
Computer Software -- 0.2%
$ 3,700 Comverse Technology, Inc., 4.50%,
07/01/05# $ 6,050
---------
Computers/Computer Hardware -- 0.6%
3,600 EMC Corp., 3.25%, 03/11/02# 17,316
---------
Health Care/Health Care Services -- 0.4%
3,000 Res-Care, Inc., 6.00%, 12/01/04# 3,277
10,000 Total Renal Care, 7.00%, 05/15/09# 8,125
---------
11,402
---------
Telecommunications -- 0.3%
8,000 Bell Atlantic Financial Services, Inc.,
4.25%, 09/15/05 8,831
---------
Utilities -- 0.1%
5,000 AES Corp., 4.50%, 08/15/05 5,600
---------
Total Convertible Corporate 49,199
Notes & Bonds
(Cost $34,568)
- -------------------------------------------------------------------
Long-Term Investments 2,975,837
(Cost $2,390,391)
- -------------------------------------------------------------------
Short-Term Investments -- 1.7%
- -------------------------------------------------------------------
Commercial Paper -- 0.4%
------------------------
12,400 General American Funding
Agreement 12,453
---------
(Cost $12,453)
Repurchase Agreement -- 1.3%
----------------------------
38,898 Greenwich Capital Markets, Inc.,
4.93%, due 05/03/99, (Dated
04/30/99, Proceeds $38,914,
Secured by FHLMC Gold,
$39,052 at 6.50%, due 03/01/29
through 04/01/29; FNMA, $910,
at 7.50%, due 11/01/13; Market
Value $39,672) 38,898
(Cost $38,898)
- -------------------------------------------------------------------
</TABLE>
See notes to financial statements.
73
<PAGE>
Growth and Income Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
Total Short-Term Investments $ 51,351
(Cost $51,351)
- ------------------------------------------------------------------
Total Investments -- 100.9% $3,027,188
(Cost $2,441,742)
- ------------------------------------------------------------------
</TABLE>
* -- Non-income producing security.
# -- Security may only be sold to qualified institutional buyers.
ADR -- American Depositary Receipt.
FHLMC -- Federal Home Loan Mortgage Corp.
FNMA--Federal National Mortgage Association.
See notes to financial statements.
74
<PAGE>
Capital Growth Portfolio
Portfolio of Investments April 30, 1999 (unaudited)
(amounts in thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
- ----------------------------------------------------------
Long-Term Investments -- 96.4%
- -----------------------------------------------------------
<S> <C> <C>
Common Stock -- 96.3%
---------------------
Aerospace -- 3.0%
260 General Dynamics Corp. $ 18,265
200 Sundstrand Corp. 14,350
----------
32,615
----------
Automotive -- 1.5%
710 Tower Automotive, Inc.* 16,330
----------
Banking -- 4.3%
150 Astoria Financial Corp. 7,519
200 Cullen/Frost Bankers, Inc. 10,787
211 TCF Financial Corp. 6,109
327 Zions Bancorporation 21,807
----------
46,222
----------
Biotechnology -- 0.9%
100 Biogen, Inc.* 9,506
----------
Broadcasting -- 1.2%
200 Comcast Corp., Special Class A 13,137
----------
Business Services -- 7.5%
400 ACNielsen Corp.* 11,150
300 Affiliated Computer Services, Inc.,
Class A* 11,475
100 Galileo International Inc. 4,900
352 Harte-Hanks, Inc. 8,888
418 ITT Educational Services, Inc.* 10,262
103 Metzler Group, Inc.* 2,871
350 NCR Corp. 14,350
220 Nielsen Media Research, Inc. 6,023
400 Snyder Communications, Inc.* 11,750
----------
81,669
----------
Chemicals -- 0.6%
39 Millennium Chemicals Inc. 1,056
363 Wellman Inc. 5,198
----------
6,254
----------
Computer Software -- 4.5%
955 American Management Systems, Inc.* 32,828
150 CSG Systems International, Inc.* 5,794
150 Electronic Arts Inc. 7,622
</TABLE>
See notes to financial statements.
75
<PAGE>
Capital Growth Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
- ---------------------------------------------------------------
Long-Term Investments -- (continued)
- ---------------------------------------------------------------
<S> <C> <C>
165 Mastech Corp.* $ 2,425
----------
48,669
----------
Computers/Computer Hardware -- 2.8%
104 ASM Lithography Holding NV
(Netherlands) 4,056
225 Comverse Technology, Inc.* 14,428
100 Lexmark International Group, Inc.,
Class A (Germany)* 12,350
----------
30,834
----------
Construction -- 1.7%
600 J. Ray McDermott, SA 18,900
----------
Consumer Products -- 3.2%
200 Premark International, Inc. 7,362
1,185 Shaw Industries, Inc. 21,478
150 York International Corp. 6,187
----------
35,027
----------
Electronics/Electrical Equipment -- 6.9%
289 Altera Corp. 20,880
200 EG&G, Inc. 6,250
250 KLA-Tencor Corp. 12,406
225 Microchip Technology, Inc.* 7,875
200 Micron Technology, Inc. 7,425
425 Vitesse Semiconductor Corp.* 19,683
----------
74,519
----------
Entertainment/Leisure -- 9.2%
1,028 AT&T Corp. -- Liberty Media
Group, Ser. A* 65,664
200 Circus Circus Enterprises Inc.* 4,213
1,100 International Game Technology 19,525
300 Station Casinos, Inc. 4,931
150 USA Networks 5,606
----------
99,939
----------
Environmental Services -- 1.0%
513 Republic Services, Inc. 10,549
----------
Financial Services -- 1.9%
340 Ambac Financial Group Inc. 20,528
----------
</TABLE>
See notes to financial statements.
76
<PAGE>
Capital Growth Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
- ---------------------------------------------------------------
Long-Term Investments -- (continued)
- ---------------------------------------------------------------
<S> <C> <C>
Food/Beverage Products -- 0.8%
400 Flowers Industries, Inc. $ 8,500
----------
Health Care/Health Care Services -- 4.4%
151 HCR Manor Care, Inc.* 4,190
750 Trigon Healthcare, Inc.* 23,812
119 Universal Health Services, Inc.,
Class B* 6,166
195 Wellpoint Health Networks, Inc.,
Class A* 13,699
----------
47,867
----------
Home Building Construction -- 0.7%
300 Lennar Corp. 7,256
----------
Hotels/Other Lodging -- 5.1%
600 Harrah's Entertainment Inc. 13,200
450 Mirage Resorts, Inc.* 10,097
3,000 Park Place Entertainment Corp. 32,437
----------
55,734
----------
Insurance -- 3.6%
249 CMAC Investment Corp. 11,423
320 Nationwide Financial Services, Inc.,
Class A 14,840
350 Reliastar Financial Corp. 12,862
----------
39,125
----------
Internet Services/Software -- 2.6%
50 At Home Corp.* 7,197
170 EarthLink Network, Inc.* 11,719
125 Verio Inc.* 8,875
----------
27,791
----------
Machinery & Engineering Equipment -- 2.6%
295 Applied Power, Inc., Class A 9,311
500 Cooper Cameron Corp. 19,313
----------
28,624
----------
Manufacturing -- 1.5%
70 Johnson Controls, Inc. 5,097
248 Pentair, Inc. 11,632
----------
16,729
----------
</TABLE>
See notes to financial statements.
77
<PAGE>
Capital Growth Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
- -----------------------------------------------------------
Long-Term Investments -- (continued)
- -----------------------------------------------------------
<S> <C> <C>
Metals/Mining -- 1.6%
300 Freeport-McMoRan Copper &
Gold, Inc. $ 4,594
202 Reynolds Metals Co. 12,600
----------
17,194
----------
Oil & Gas -- 1.2%
400 Diamond Offshore Drilling, Inc. 13,225
----------
Paper/Forest Products -- 1.1%
250 Willamette Industries, Inc. 11,688
----------
Real Estate Investment Trust -- 1.5%
250 Beacon Capital Partners Inc.* 3,781
100 Equity Residential Properties Trust 4,625
300 Public Storage, Inc. 8,362
----------
16,768
----------
Restaurants/Food Services -- 1.2%
52 Brinker International Inc. 1,437
500 Darden Restaurants, Inc. 11,156
----------
12,593
----------
Retailing -- 8.5%
45 American Eagle Outfitters Inc. 3,364
300 Ethan Allen Interiors, Inc.* 15,206
120 Family Dollar Stores, Inc. 2,895
300 Kroger Co.* 16,294
100 Linens 'N Things, Inc.* 4,575
1,000 Office Depot, Inc.* 22,000
200 Payless ShoeSource, Inc. 9,688
400 Ross Stores, Inc. 18,375
----------
92,397
----------
Shipping/Transportation -- 0.5%
178 C.H. Robinson Worldwide, Inc. 5,314
----------
Steel -- 0.7%
300 AK Steel Holding Corp. 7,800
----------
Telecommunications -- 2.2%
225 American Tower Corp.* 4,767
200 NEXTLINK Communications, Inc.,
Class A* 14,650
25 QUALCOMM Inc. 5,000
----------
24,417
----------
</TABLE>
See notes to financial statements.
78
<PAGE>
Capital Growth Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
- ------------------------------------------------------------------
Long-Term Investments -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
Telecommunications Equipment -- 1.7%
500 General Instrument Corp. $ 18,250
----------
Toys & Games -- 1.2%
375 Hasbro, Inc. 12,797
----------
Utilities -- 3.4%
475 CMS Energy Corp. 20,900
400 Pinnacle West Capital Corp. 15,525
----------
36,425
----------
Total Common Stock 1,045,192
(Cost $814,574) ----------
Principal
Amount
U.S. Treasury Securities -- 0.1%
--------------------------------
$ 565 U.S. Treasury Notes, 6.88%, due
05/16/06 613
(Cost $571)
- ------------------------------------------------------------------
Total Long-Term Investments 1,045,805
(Cost $815,145)
- ------------------------------------------------------------------
Short-Term Investments -- 4.7%
- ------------------------------------------------------------------
Commercial Paper -- 0.9%
------------------------
10,000 General American Funding Agreement 10,043
(Cost $10,043) ----------
Repurchase Agreement -- 3.8%
-------------------------------------
40,995 Greenwich Capital Markets, Inc.,
4.93%, due 05/03/99, (Dated
04/30/99, Proceeds $41,007,
Secured by FHLMC Gold,
$28,065 at 6.50%, due 03/01/29;
FNMA, $34,173, 6.26% through
7.50%, due 02/01/09 through
02/01/09; Market Value $41,813) 40,995
(Cost $40,995)
- ------------------------------------------------------------------
Total Short-Term Investments 51,038
(Cost $51,038)
- ------------------------------------------------------------------
Total Investments -- 101.1% $1,096,843
(Cost $866,183)
- ------------------------------------------------------------------
</TABLE>
See notes to financial statements.
79
<PAGE>
Capital Growth Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
(amounts in thousands)
* -- Non income producing security.
# -- Security may only be sold to qualified institutional buyers.
ADR -- American Depositary Receipt.
FHLMC -- Federal Home Loan Mortgage Corp.
FNMA -- Federal National Mortgage Association.
80
See notes to financial statements.
<PAGE>
Portfolios
Statement of Assets and Liabilities April 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
(amounts in thousands)
<TABLE>
<CAPTION>
Growth and Capital
Income Growth
Portfolio Portfolio
------------- -------------
<S> <C> <C>
ASSETS:
Investment securities, at value (Note 1) ............ $3,027,188 $1,096,843
Receivables:
Investment securities sold ......................... 30,657 --
Interest and dividends ............................. 3,559 638
Other assets ........................................ 57 33
---------- ----------
Total assets ...................................... 3,061,461 1,097,514
---------- ----------
LIABILITIES:
Payable for investment securities purchased ......... 60,057 11,182
Accrued liabilities: (Note 2)
Investment advisory fees ........................... 972 358
Administration fees ................................ 122 45
Custodian .......................................... 23 8
Other .............................................. 349 273
---------- ----------
Total Liabilities ................................. 61,523 11,866
---------- ----------
NET ASSETS APPLICABLE TO INVESTORS'
BENEFICIAL INTERESTS ................................. $2,999,938 $1,085,648
========== ==========
Cost of Investments ................................. $2,441,742 $ 866,183
========== ==========
</TABLE>
81
See notes to financial statements.
<PAGE>
Portfolios
Statement of Operations For the six months ended April 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
(amounts in thousands)
<TABLE>
<CAPTION>
Growth and Capital
Income Growth
Portfolio Portfolio
----------- ----------
<S> <C> <C>
INVESTMENT INCOME:
Dividend ............................................ $ 19,150 $ 3,561
Interest ............................................ 3,004 1,154
Foreign taxes withheld .............................. (51) --
-------- --------
Total investment income ........................... 22,103 4,715
-------- --------
EXPENSES: (Note 2)
Investment Advisory fees ............................ 5,785 2,341
Administration fees ................................. 723 293
Custodian fees ...................................... 87 47
Professional fees ................................... 49 35
Trustees fees and expenses .......................... 29 12
Other ............................................... 88 39
-------- --------
Total expenses .................................... 6,761 2,767
-------- --------
Net investment income ............................... 15,342 1,948
-------- --------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain on investments .................... 473,279 107,837
Change in net unrealized appreciation/
depreciation on investments ........................ (44,477) 21,604
-------- --------
Net realized and unrealized gain on
investments ....................................... 428,802 129,441
-------- --------
Net increase in net assets from operations ......... $444,144 $131,389
======== ========
</TABLE>
82
See notes to financial statements.
<PAGE>
Portfolios
Statement of Changes in Net Assets For the periods indicated (unaudited)
- --------------------------------------------------------------------------------
(Amounts in thousands)
<TABLE>
<CAPTION>
Growth and
Income
Portfolio
-------------------------
11/01/98 Year
Through Ended
04/30/99 10/31/98
---------- ----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ............................................................. $ 15,342 $ 34,737
Net realized gain on investments and futures transactions ......................... 473,279 203,734
Change in net unrealized appreciation (depreciation) on investments and futures
transactions ..................................................................... (44,477) 20,045
---------- -------------
Increase in net assets from operations ............................................ 444,144 258,516
---------- -------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS:
Contributions ..................................................................... 273,235 1,057,120
Withdrawals ....................................................................... (469,586) (1,226,801)
---------- -------------
Net (decrease) from transactions in investors' beneficial interests ............... (196,351) (169,681)
---------- -------------
Net increase (decrease) in net assets ............................................. 247,793 88,835
NET ASSETS:
Beginning of period ............................................................... 2,752,145 2,663,310
---------- -------------
End of period ..................................................................... $2,999,938 $ 2,752,145
========== =============
<CAPTION>
Capital
Growth
Portfolio
------------------------------
11/01/98 Year
Through Ended
04/30/99 10/31/98
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ............................................................. $ 1,948 $ 7,562
Net realized gain on investments and futures transactions ......................... 107,837 108,711
Change in net unrealized appreciation (depreciation) on investments and futures
transactions ..................................................................... 21,604 (115,006)
---------- ----------
Increase in net assets from operations ............................................ 131,389 1,267
---------- ----------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS:
Contributions ..................................................................... 376,340 611,367
Withdrawals ....................................................................... (613,739) (736,449)
---------- ----------
Net (decrease) from transactions in investors' beneficial interests ............... (237,399) (125,082)
---------- ----------
Net increase (decrease) in net assets ............................................. (106,010) (123,815)
NET ASSETS:
Beginning of period ............................................................... 1,191,658 1,315,473
---------- ----------
End of period ..................................................................... $1,085,648 $1,191,658
========== ==========
</TABLE>
See notes to financial statements.
83
<PAGE>
- --------------------------------------------------------------------------------
Portfolios
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies -- Growth and Income
Portfolio ("GIP") and Capital Growth Portfolio ("CGP"), (the "Portfolios") are
separately registered under the Investment Company Act of 1940, as amended, as
non-diversified, open end management investment companies organized as trusts
under the laws of the State of New York. Each declaration of trust permits the
Trustees to issue beneficial interests in the respective Portfolios.
The following is a summary of significant accounting policies followed by the
Portfolios:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates.
A. Valuation of investments -- Equity securities, purchased options and
futures are valued at the last sale price on the exchange on which they are
primarily traded, including the NASDAQ National Market. Securities for which
sale prices are not available and other over-the-counter securities are
valued at the last quoted bid price. Bonds and other fixed income securities
(other than short-term obligations), including listed issues, are valued on
the basis of valuations supplied by pricing services or by matrix pricing
systems of a major dealer in bonds. Short-term debt securities with 61 days
or more to maturity at time of purchase are valued, through the 61st day
prior to maturity, at market value based on quotations obtained from market
makers or other appropriate sources; thereafter, the value on the 61st day is
amortized on a straight-line basis over the remaining number of days to
maturity. Short-term investments with 60 days or less to maturity at time of
purchase are valued at amortized cost, which approximates market. Portfolio
securities for which there are no such quotations or valuations are valued at
fair value as determined in good faith by or at the direction of the
Trustees.
B. Repurchase agreements -- It is the Portfolios' policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government Agency
securities. All collateral is held by the Portfolio's custodian bank,
subcustodian, or a bank with which the custodian bank has entered into a
subcustodian agreement, or is segregated in the Federal Reserve Book Entry
System. In connection with transactions in repurchase agreements, if the
seller defaults and the value of the collateral declines, or if the seller
enters an insolvency proceeding, realization of the collateral by the Trusts
may be delayed or limited.
C. Futures contracts -- When a Portfolio enters into a futures contract, it
makes an initial margin deposit in a segregated account, either in cash or
liquid securities. Thereafter, the futures contract is marked to market and
the portfolio makes (or receives) additional cash payments daily to the
broker. Changes in the value of the contract are recorded as unrealized
appreciation/depreciation until the contract is closed or settled.
The Portfolios invested a portion of its liquid assets in long stock index
futures contracts to more fully participate in the market. Use of long
futures contracts subjects the Portfolios to risk of loss up to the amount of
the nominal value of the contract.
The Portfolios may enter into futures contracts only on exchanges or boards
of trade. The exchange or board of trade acts as the counterparty to each
futures transaction, therefore, the Portfolio's credit risk is limited to
failure of the exchange or board of trade.
As of April 30, 1999, the Portfolios 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).
84
<PAGE>
Portfolios
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
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. Federal income taxes -- The Portfolios intend to continue to qualify as
partnerships and therefore net investment income and net realized gains are
taxed to the partners. Accordingly, no tax provisions are recorded by the
Portfolios. The investors in the Portfolios must take into account their
proportionate share of the Portfolios' income, gains, losses, deductions,
credits and tax preference items in computing their federal income tax
liability, without regard to whether they have received any cash
distributions from the Portfolio. The Portfolios do not intend to distribute
to investors their net investment income or their net realized gains, if any.
It is intended that the Portfolios will be managed in such a way that
investors in the Portfolio will be able to satisfy the requirements of
subchapter M of the Internal Revenue Code to be taxed as regulated investment
companies.
F. Expenses -- Expenses directly attributable to a Portfolio are charged to
that Portfolio; other expenses are allocated on another reasonable basis.
2. Fees and Other Transactions with Affiliates
A. Investment advisory fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank ("Chase" or the "Advisor") acts as the
Investment Advisor to the Portfolios. Chase is a direct wholly-owned
subsidiary of The Chase Manhattan Corporation. As Investment Advisor, Chase
supervises the investments of the Portfolios and for such services is paid a
fee.
The fee is computed daily and paid monthly at an annual rate equal to 0.40%
of the Portfolios' average daily net assets.
Chase Asset Management, Inc. ("CAM"), a registered investment advisor, is the
sub-investment advisor to each of the Portfolios pursuant to a Sub-Investment
Advisory Agreement between CAM and Chase. CAM is a wholly owned subsidiary of
Chase and is entitled to receive a fee, payable by Chase from its advisory
fee, at an annual rate equal to 0.20% of each Portfolio's average daily net
assets.
B. Custodial fees -- Chase, as Custodian provides safekeeping services for
the Portfolios' securities. Compensation for such services are presented in
the Statement of Operations as custodian fees.
C. Administration fee -- Pursuant to an Administration Agreement, Chase (the
"Administrator") provides certain administration services to the Trusts. For
these services and facilities, the Administrator receives from each Portfolio
a fee computed at the annual rate equal to 0.05% of the respective
Portfolio's average daily net assets.
3. Investment Transactions -- For the six months ended April 30, 1999, purchases
and sales of investments (excluding short-term investments) were as follows (in
thousands):
<TABLE>
<CAPTION>
GIP CGP
------------- -----------
<S> <C> <C>
Purchases (excluding U.S. Government) ......... $2,087,884 $594,087
Sales (excluding U.S. Government) ............. 2,125,522 803,231
</TABLE>
The portfolio turnover rates of GIP and CGP for the six months ended April 30,
1999, were 74% and 52% respectively.
4. Retirement Plan -- The Portfolios have adopted an unfunded noncontributory
defined benefit pension plan covering all independent trustees of the Portfolios
who will have served as an independent trustee for at least five years at the
time of retirement. Benefits under this plan are based on compensation and years
of service. Pension expenses for the six months ended April 30, 1999, included
in Trustees Fees and Expenses in the Statement of Operations, and accrued
pension liability included in other accrued
85
<PAGE>
Portfolios
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
liabilities, respectively, in the Statement of Assets and Liabilities were as
follows (in thousands):
<TABLE>
<CAPTION>
Accrued
Pension Pension
Expenses Liability
---------- ----------
<S> <C> <C>
GIP ......... $13 $25
CGP ......... 6 11
</TABLE>
5. Bank Borrowings -- The Portfolios may borrow money for temporary or emergency
purposes. Any borrowings representing more than 5% of a Portfolio's total assets
must be repaid before the Portfolio may make additional investments. The
Portfolios 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 Portfolio based on its borrowings at an annual rate equal to the
sum of the Federal Funds Rate plus 0.35%. The Portfolios also pay a commitment
fee of 0.075% 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 Portfolios had no borrowings outstanding at April 30, 1999, nor at any point
during the year.
86
