APRIL 30, 1999 (UNAUDITED)
EUROPEAN FUND
SOUTHEAST ASIAN FUND
JAPAN FUND
LATIN AMERICAN
EQUITY FUND
INTERNATIONAL
EQUITY FUND
Chase Vista
International
Equity Funds
SEMI-ANNUAL REPORT
[Chase Vista Funds Logo]
SAIEQ-3-699
<PAGE>
Highlights
o International equity markets posted solid gains due partly to diminishing
concerns over the state of the global economy.
o European markets performed well in late 1998 and early 1999, while Japanese
stocks posted good returns toward the end of the period.
o Emerging markets recorded impressive investment results as investors, buoyed
by a stabilizing global economy, returned to markets in Southeast Asia and
Latin America.
CONTENTS
Chairman's Letter 3
Chase Vista European Fund
Fund Commentary o Portfolio of Investments 4
Chase Vista Southeast Asian Fund
Fund Commentary o Portfolio of Investments 15
Chase Vista Japan Fund
Fund Commentary o Portfolio of Investments 25
Chase Vista Latin American Equity Fund
Fund Commentary o Portfolio of Investments 33
Chase Vista International Equity Fund
Fund Commentary 41
Fund Financial Statements 46
International Equity Portfolio
Portfolio of Investments o Portfolio of Financial Statements 66
- --------------------------------------------------------------------------------
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
June 1, 1999
Dear Shareholder:
We are pleased to present this annual report for the following Chase Vista
International Equity Funds for the six-month period ended April 30, 1999:
International Equity Fund
European Fund
Latin American Equity Fund
Southeast Asian Fund
Japan Fund
International Markets Show Strength
as Global Economic Worries Subside
The period began with European equity markets recording strong performance, due
to a generally positive outlook for corporate earnings. Japan's weak economy
kept stock prices there under pressure, while Latin American markets were
bolstered by improving global economic conditions. Stocks in Southeast Asia
rallied thanks to investor optimism over the region's economic prospects.
In the beginning of 1999, European stocks continued to post solid gains. The
rally was fueled by investor enthusiasm over the creation of the 11-country
European Monetary Union (EMU). Southeast Asian markets stayed on an upward
course, as well. Latin American markets retreated midway through January when
Brazil, the region's largest economy, devalued its currency; however, these
markets bounced back in February on news that Brazil's fiscal troubles were
subsiding.
In March, Japanese markets were particularly strong, as investors grew
optimistic about the prospects for corporate restructuring. Latin American
markets continued to enjoy strong investment results. Brazil led the way with
gains in excess of 30%. Increasing consumer confidence throughout Southeast Asia
helped lift stock prices in several markets in the region, such as India, Korea
and Hong Kong.
In the final weeks of the period, Southeast Asian markets registered strong
investment results due to increasing foreign investment and signs that the
economic landscape in the region, most notably in Thailand and Malaysia, is
improving. Japanese stocks continued to record good performance, thanks to the
government's apparent willingness to address the country's fiscal troubles in
earnest. Improving economic conditions in Brazil had a positive impact on Latin
American markets, while supportive monetary policies throughout Europe helped
propel stock prices higher on the Continent.
Sincerely yours,
[Signature of Fergus Reid]
Fergus Reid
Chairman
3
<PAGE>
Chase Vista European Fund
as of April 30, 1999
(unaudited)
Fund Facts
<TABLE>
<S> <C>
Objective Capital growth
Primary investments Common stocks of established companies
in Western Europe
Suggested investment time frame Long-Term
Market benchmark MSCI Europe Index
Lipper Funds category European Funds Average
Class A Class B Class C
------- ------- -------
Inception date 11/2/95 11/3/95 11/2/98
Newspaper symbol Europe Not listed Not listed
Net assets $46.0 Million $11.2 Million $1.1 Million
</TABLE>
Investment Style/Market Cap
[9-Block Graphic]
Value Blend Growth
----- ----- ------
Large X
Med.
Small
[End Graphic]
4
<PAGE>
Chase Vista European Fund
as of April 30, 1999
(unaudited)
How the Fund Performed
Chase Vista European Fund, which seeks long-term growth of capital by investing
primarily in the common stocks of established companies in Western Europe,
provided shareholders with a total return of 13.08% (Class A shares, without
sales charges) for the six-month period ended April 30, 1999.
How the Fund Was Managed
Early in the period, the Fund benefited from investor enthusiasm over the
creation of the 11-country European Monetary Union (EMU). The ongoing wave of
corporate restructuring, benign inflation and low interest rates were additional
developments that helped propel prices higher.
In the second half of the period, concerns over a slowing economy weighed on the
European equity markets. In this environment, the Fund's defensive stocks
recorded relatively good investment results. These securities typically hold up
better than the market during periods of economic uncertainty. This strategy
proved effective in helping to protect shareholder capital. The Fund used the
downturn to increase it exposure in select technology and financial stocks, two
sectors management believes offers shareholders good long-term growth potential.
European equities enjoyed a boost after the European Central Bank (ECB) decided
to cut short-term interest rates by .50% to help stimulate economic activity.
The market had expected a rate cut of .25%. At the end of April, however, the
Euro, the EMU's new currency, fell to a record low after the U.S. Department of
Commerce reported a stronger-than-expected economic growth rate for the first
quarter. While the war in Yugoslavia did not have a significant impact on the
major indices throughout Europe, it tempered investor enthusiasm, as well.
Where the Fund May Be Headed
Our forecast for European equities remains positive, given the fact that
inflation remains low and corporate earnings are generally good. The global
economic worries that have jarred worldwide financial markets periodically over
the past two years have dissipated. In addition, stocks across the continent
remain attractively priced, and corporations are continuing to cut operating
expenses to improve productivity, a strategy that paid off handsomely for
American companies when it was employed during the late 1980s and early 1990s.
Concerns over the sluggish economic environment may continue to have some affect
on stock prices until conditions improve. However, given our favorable long-term
forecast for equities, we intend to use any meaningful downturn as an
opportunity to increase our exposure to quality companies that, we believe, can
help the Fund achieve its long-term investment objective.
5
<PAGE>
Chase Vista European Fund
as of April 30, 1999
(unaudited)
How Much of the Fund Was Invested
[Pie Chart]
Cash/Other 8.14%
Investments 91.86%
[End Pie Chart]
What the Fund Invested In
Percentage of Total Portfolio Investments
[Pie Chart]
Finland 4.7%
France 14.2%
Germany 11.0%
Greece 1.1%
Ireland 3.6%
Italy 6.6%
Netherlands 7.0%
Portugal 1.8%
Spain 6.3%
Sweden 2.8%
Switzerland 9.3%
United Kingdom 31.6%
[End Pie Chart]
Top Ten Equity Holdings
1. British Petroleum Co., PLC (3.90%) An oil and petrochemicals company. The
Company explores for and produces oil and natural gas; refines, markets, and
supplies petroleum products; and manufactures and markets chemicals.
2. UBS AG (3.52%) Attracts deposits and offers retail, corporate and private
banking services.
3. Nokia Oyj (3.50%) An international telecommunications company. The Company
develops and manufactures mobile phones, networks and systems for cellular
and fixed networks.
4. Royal Bank of Scotland Group PLC (3.20%) Offers services to personal
customers that include bank and savings accounts, credit cards and
mortgages, life assurance and innovative investment products.
5. Credit Commercial de France (3.15%) Provides retail banking, investment
banking, fund management and private banking.
6. Daimler Chrysler AG (3.04%) Designs, manufactures and markets automobiles,
light trucks and commercial vehicles worldwide. The Company also
manufactures commercial and military aircraft, defense and aerospace
systems, rail systems, electronics and diesel engines.
7. Vodafone Group PLC (2.95%) Provides telecommunications services and operates
the Vodafone network. The Company's services include cellular radio, wide
area paging, distribution, and value added network services.
8. Zurich Allied AG (2.80%) Controls 57% of Zurich Financial Services Group.
The Group's core business are non-life and life insurance, reinsurance and
asset management.
9. Argentina, Caja Postal y Banco Hipotecario de Espana, SA (2.61%) A
partially-owned banking group. The Bank offers corporate banking, mortgage
banking, retail banking, international banking, funds management and
insurance services.
10. Pinault-Printemps-Redout SA (2.52%) Operates department stores and
distributes building materials. The company operates several different
department stores throughout the world which sell a wide range of consumer
goods.
Top 10 equity holdings comprised 31.2% of Fund's market value of investments.
Fund holdings are subject to change at any time.
6
<PAGE>
Chase Vista European Fund
as of April 30, 1999
(unaudited)
Average Annual Total Returns[dagger]
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 3 Years (11/2/95)
------ ------- ---------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge 2.34% 22.98% 23.28%
With Sales Charge* -3.55% 20.58% 21.21%
Class B Shares
Without CDSC 1.56% 22.08% 22.40%
With CDSC** -3.44% 21.41% 21.87%
Class C Shares
Without CDSC 1.56% 22.08% 22.40%
With CDSC*** 0.56% 22.08% 22.40%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
* Sales charge on Class A Shares is 5.75%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period
and a 4% CDSC for the period since inception.
*** Assumes 1% CDSC for the one year period and 0% thereafter.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting and
taxations policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the United
States and other nations. The fund may be also subject to the additional risk of
non-diversified "regional" fund investing.
[dagger] The Fund commenced operations on 11/2/95. Class B and C Shares were
introduced on 11/3/95 and 11/2/98 respectively. Investors should note that
information presented for Class B and Class C Shares prior to their introduction
is based upon historical expenses of the predecessor Class A Shares, which are
lower than the actual expenses of the B and C Shares.
7
<PAGE>
Chase Vista European Fund
as of April 30, 1999
(unaudited)
Life of Fund Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista European Fund compared to its key
benchmarks. This is where you see the Fund's long-term trend. This chart is for
illustrative purposes only.
[Line Chart]
Chase Vista Lipper European MSCI
European Fund Funds Average Europe Index
------------- -------------- ------------
1995 9425 10000 10000
1996 10509.8 10877.1 11007.8
1997 12879.4 13207.3 12937.8
1998 19103.4 18785.7 17884.2
1999 19549.6 19523.6 17763.7
[End Line Chart]
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
Shares of Chase Vista European Fund, the Lipper European Funds Average and the
MSCI Europe Index from November 2, 1995 to April 30, 1999. The performance of
the Fund assumes the reinvestment of all dividends and capital gains and
includes a 5.75% sales charge. The performance of the average and the index does
not include a sales charge and has been adjusted to reflect reinvestment of all
dividends and capital gains on the securities included in the benchmark.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
The Lipper European Funds Average represents the average performance of a
universe of 91 actively managed mutual funds that invest in European stocks.
Lipper is an independent mutual fund performance monitor whose results are based
on total return and do not reflect a sales charge.
The MSCI Europe Index is a replica (or model) of the performance of the European
markets. The index is unmanaged and reflects the reinvestment of dividends. An
individual cannot invest directly in the index.
International investing involves a greater degree of risk and increased
volatility. Changes in currency and exchange rates and differences in accounting
and taxation policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the United
States and other nations. The Fund may also be subject to the additional risk of
non-diversified "Regional" fund investing.
8
<PAGE>
Chase Vista European Fund
Portfolio of Investments April 30, 1999 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -------------------------------------------------------------------------------
Long Term Investments -- 97.8%
- -------------------------------------------------------------------------------
<S> <C> <C>
Common Stock -- 96.9%
---------------------
Finland -- 4.6%
Telecommunications -- 4.6%
25,854 Nokia Oyj $ 1,995,353
33,450 Sonera Group Oyj 665,305
-----------
Total Finland 2,660,658
-----------
France -- 13.3%
Banking -- 3.1%
16,997 Credit Commercial de France 1,798,204
Computer Software -- 1.8%
6,784 Cap Gemini Sogeti SA 1,038,535
Entertainment/Leisure -- 0.2%
5,831 Parc Asterix, SA 127,573
Home Building Construction -- 1.1%
3,674 Compagnie de Saint Gobain 631,625
Insurance -- 1.4%
32,400 CNP Assurances* 812,382
Oil & Gas -- 3.3%
5,988 Elf Aquitaine SA 931,249
7,200 Total SA, B Shares 987,198
-----------
1,918,447
-----------
Retailing -- 2.4%
8,660 Pinault-Printemps-Redoute SA 1,438,416
-----------
Total France 7,765,182
-----------
Germany -- 10.5%
Automotive -- 3.0%
17,525 Daimler Chrysler AG 1,732,623
Chemicals -- 3.3%
20,800 Degussa - Huels AG* 908,825
22,200 Hoechst AG 1,053,373
-----------
1,962,198
-----------
Food/Beverage Products -- 2.2%
37,467 Kamps AG 1,288,247
Insurance -- 2.0%
3,638 Allianz AG 1,160,424
-----------
Total Germany 6,143,492
-----------
</TABLE>
See notes to financial statements.
9
<PAGE>
Chase Vista European Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -------------------------------------------------------------------------------
Long Term Investments -- (continued)
- -------------------------------------------------------------------------------
<S> <C> <C>
Greece -- 1.1%
Telecommunications -- 1.1%
23,532 STET Hellas Telecommunications SA,
ADR* $ 635,364
-----------
Ireland -- 3.5%
Airlines -- 1.1%
73,000 Ryanair Holdings PLC* 641,014
Paper/Forest Products -- 0.4%
100,000 Jefferson Smurfit Group PLC 267,277
Real Estate -- 0.8%
73,443 Green Property PLC 455,265
Telecommunications -- 1.2%
14,413 Esat Telecom Group PLC, ADR* 704,435
-----------
Total Ireland 2,067,991
-----------
Italy -- 6.4%
Food/Beverage Products -- 0.7%
161,700 Cremonini SPA* 420,835
Insurance -- 2.0%
98,000 Alleanza Assicurazioni 1,176,763
Oil & Gas -- 1.0%
90,000 Ente Nazionale Idrocarburi SPA 593,195
Printing & Publishing -- 0.3%
77,138 Poligrafici Editoriale SPA 156,280
Telecommunications -- 2.4%
187,356 Olivetti Group SPA* 654,106
70,960 Telecom Italia SPA 755,979
-----------
1,410,085
-----------
Total Italy 3,757,158
-----------
Netherlands -- 6.9%
Banking -- 2.5%
23,318 ING Groep NV 1,438,225
Multi-Media -- 1.3%
14,200 United Pan-Europe Communications
NV* 735,373
Printing & Publishing -- 2.1%
30,650 Verenigde Nederlandse
Uitgeversbedrijvan Verenigd Bezit 1,241,927
</TABLE>
See notes to financial statements.
10
<PAGE>
Chase Vista European Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -------------------------------------------------------------------------------
Long Term Investments -- (continued)
- -------------------------------------------------------------------------------
<S> <C> <C>
Retailing -- 1.0%
6,625 Koninklijke Ahold NV $ 246,364
15,570 Laurus NV 335,214
-----------
581,578
-----------
Total Netherlands 3,997,103
-----------
Portugal -- 1.8%
Banking -- 1.4%
28,972 Banco Comercial Portugues, SA 818,076
Shipping/Transportation -- 0.4%
4,940 Brisa-Auto Estradas de Portugal, SA 209,574
-----------
Total Portugal 1,027,650
-----------
Spain -- 6.1%
Banking -- 2.5%
63,220 Argentaria, Caja Postal y Banco
Hipotecario de Espana, SA 1,488,835
Business Services -- 0.8%
38,000 Prosequr, CIA de Seguridad SA,
Registered 440,215
Construction -- 0.9%
8,300 Fomento de Construcciones y
Contratas SA 507,543
Steel -- 0.5%
10,500 Acerino SA 317,370
Telecommunications -- 1.4%
17,307 Telefonica de Espana 812,049
-----------
Total Spain 3,566,012
-----------
Sweden -- 2.7%
Banking -- 1.4%
22,250 Svenska Handelsbanken A Shares 835,951
Business Services -- 1.3%
17,270 Assa Abloy AB 755,621
-----------
Total Sweden 1,591,572
-----------
Switzerland -- 9.1%
Banking -- 3.5%
5,900 UBS AG 2,007,420
Consumer Products -- 0.8%
259 Compagnie Financiere Richemont AG 441,292
</TABLE>
See notes to financial statements.
11
<PAGE>
Chase Vista European Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -------------------------------------------------------------------------------
Long Term Investments -- (continued)
- -------------------------------------------------------------------------------
<S> <C> <C>
Engineering Services -- 0.5%
200 ABB AG $ 292,292
Insurance -- 2.7%
2,470 Zurich Allied AG 1,594,802
Pharmaceuticals -- 1.6%
80 Roche Holding AG 942,690
-----------
Total Switzerland 5,278,496
-----------
United Kingdom -- 30.9%
Banking -- 7.6%
42,000 Barclays PLC 1,334,902
54,000 National Westminster Bank 1,301,573
77,300 Royal Bank of Scotland Group PLC 1,824,594
-----------
4,461,069
-----------
Business Services -- 1.4%
95,040 Jarvis PLC 794,194
Computers/Computer Services -- 1.0%
60,000 SEMA Group PLC 580,602
Construction -- 1.5%
72,423 Berkeley Group PLC 864,067
Electronics/Electrical Equipment -- 2.8%
112,390 General Electric Company PLC 1,191,616
60,000 NXT PLC 467,573
-----------
1,659,189
-----------
Engineering Services -- 0.8%
90,000 Senior Engineering Group PLC 228,594
27,300 TI Group PLC 227,031
-----------
455,625
-----------
Entertainment/Leisure -- 1.2%
32,825 Granada Group PLC 701,868
Food/Beverage Products -- 1.7%
86,100 Diageo PLC 994,667
Insurance -- 0.9%
187,544 Legal & General Group PLC 545,801
Multi-Media -- 1.8%
75,806 Reuters Group PLC 1,027,705
Oil & Gas -- 3.8%
117,040 British Petroleum Co., PLC 2,221,780
</TABLE>
See notes to financial statements.
12
<PAGE>
Chase Vista European Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -------------------------------------------------------------------------------
Long Term Investments -- (continued)
- -------------------------------------------------------------------------------
<S> <C> <C>
Pharmaceuticals -- 1.3%
59,450 SmithKline Beecham PLC $ 786,822
Steel -- 0.7%
175,000 British Steel PLC 416,312
Telecommunications -- 4.4%
9,333 Energis PLC* 250,201
62,716 Securicor PLC 588,708
91,346 Vodafone Group PLC 1,684,022
----------
2,522,931
----------
Total United Kingdom 18,032,632
----------
Total Common Stock 56,523,310
----------
(Cost $52,032,881)
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
(USD)
<S> <C> <C>
Convertible Corporate Notes & Bonds -- 0.6%
-------------------------------------------
France -- 0.6%
Diversified -- 0.6%
105,000 Vivendi SA, 1.25%, 01/01/04 $333,034
--------
Germany -- 0.0%
Automotive -- 0.0%
4,800 Daimler-Benz AG, 5.75%, 06/14/02 4,177
--------
Total Convertible Corporate
Notes & Bonds 337,211
--------
(Cost $350,710)
Rights -- 0.0%
-----------------------------------
Spain -- 0.0%
Telecommunications -- 0.0%
17,307 Telefonica SA 16,113
--------
(Cost $0)
Warrants -- 0.3%
-----------------------------------
Germany -- 0.3%
Insurance -- 0.0%
71 Muenchener Rueckversicherungs-
Gesellschaft AG, Expires 06/03/02 2,441
</TABLE>
See notes to financial statements.
13
<PAGE>
Chase Vista European Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value (USD)
- -------------------------------------------------------------------------------
Long Term Investments -- (continued)
- -------------------------------------------------------------------------------
<S> <C> <C>
Utilities -- 0.3%
17,000 German Utilities Basket, Expires
11/04/00 $ 139,206
-----------
Total Germany 141,647
-----------
Total Warrants 141,647
(Cost $378,205)
===============================================================================
Total Investments -- 97.8% $57,018,281
(Cost $52,761,796)
===============================================================================
</TABLE>
Index
* -- Non-income producing security.
ADR -- American Depositary Receipt.
See notes to financial statements.
14
<PAGE>
Chase Vista Southeast Asian Fund
as of April 30, 1999
(unaudited)
Fund Facts
<TABLE>
<S> <C> <C>
Objective Capital growth
Primary investments Stocks of companies in the Pacific Rim,
except Japan
Suggested investment time frame Long-Term
Market benchmark MSCI Pacific Ex-Japan Index
Lipper Funds category Lipper Pacific Ex-Japan Funds
Average
Class A Class B
------- -------
Inception date 11/2/95 11/3/95
Newspaper symbol Not listed Not listed
Net assets $5.1 Million $1.1 Million
</TABLE>
Investment Style/Market Cap
[9-Block Graphic]
Value Blend Growth
----- ----- ------
Large
Med. X
Small
[End Graphic]
15
<PAGE>
Chase Vista Southeast Asian Fund
as of April 30, 1999
(unaudited)
How the Fund Performed
Chase Vista Southeast Asian Fund, which seeks long-term growth of capital by
investing in stocks of companies located in the Pacific Rim (excluding Japan),
had a total return of 38.75% (class A shares, without sales charges) for the
six-month period ended April 30, 1999.
How the Fund Was Managed
Management's country allocation strategy and stock selection process contributed
to the Fund's performance. A change in investor sentiment towards stocks
throughout the region, ignited by improving global economic conditions, was also
responsible for the Fund's investment results.
Early in the period, Southeast Asian financial markets benefited from the
Federal Reserve Board's decision to reduce short-term interest rates in November
for the third time in as many months. South Korea, Thailand and Malaysia were
particularly good performers late in the period. The main reason: After the
region's economic troubles came to light in 1997, these countries wasted little
time in attacking their inherent fiscal woes and, therefore, were the first
countries to emerge from the crisis.
The good performance recorded by southeast Asian markets was not without some
volatility along the way. In January, for example, economic problems in Brazil
and worries over a potential currency devaluation by China had a negative impact
on markets along the Pacific Rim. However, as these worries subsided, many
markets rebounded.
Where the Fund May Be Headed
Our outlook for stocks in the region has improved significantly over the past
few months. The economic and currency crisis appears to have ended or, at the
very least, is close to bottoming. In turn, investors, both locally and
internationally, are returning to the region, giving new rise to optimism for
higher stock prices. Moreover, despite the good relative performance of many
markets in southeast Asia over the past few months, valuations continue to be
highly attractive, on a historical and relative basis. Analysts are also once
again raising expected growth rates for many companies along the Pacific Rim.
Since the difficulty experienced by the southeast Asian market over the past two
years are unlikely to be forgotten by investors, we expect volatility to remain
an issue going forward. Stock selection will play a critically important role in
delivering good investment results in the months ahead.
16
<PAGE>
Chase Vista Southeast Asian Fund
as of April 30, 1999
(unaudited)
How Much of the Fund Was Invested
[Pie Chart Data]
Investments (70.65%)
Cash/Other (29.35%)
What the Fund Invested In
Percentage of Total Portfolio Investments
[Pie Chart Data]
Australia 10.6%
China 90.0%
Hong Kong 29.0%
India 7.6%
Other 0.1%
Philippines 2.9%
Singapore 10.3%
South Korea 11.6%
Taiwan 1.2%
Thailand 17.7%
Top Ten Equity Holdings
1 Siam Commercial Bank (5.30%) Provides a full range of financial services
including corporate and personal lending, retail and wholesale banking, and
initial trade financing.
2. HSBC Holding PLC (4.28%) An international banking and financial services
organization. Services provided include retail and corporate banking, trade,
trustee, securities, custody and treasury services.
3. Thai Military Bank (3.77%) Provides banking services to its customers
through more than 200 branches throughout Thailand.
4. Swire Pacific, LTD, Class A (3.69%) Has diversified operations under six
operating divisions: property, aviation, industries, trading, marine
services and insurance.
5. Hutchinson Whampoa (3.69%) The Company has diversified operations in
property investment and development, ports and related services, retail and
manufacturing, telecommunications, media, energy, infrastructure, finance,
investment and other services.
6. Lang Corp., LTD (3.61%) A holding company with investments in listed and
unlisted companies with operations in transport logistics with its primary
activity on seaborne trade movements.
7. PTT Exploration and Production Public Co., LTD (Foreign) (3.52%) An
affiliate of the state-owned Petroleum Authority of Thailand. The Company
explores for natural gas in the Gulf of Thailand.
8. Cheung Kong Holdings, LTD (2.99%) Involved in property development and
investment, real estate agency and management and investment in securities.
9. Hong Kong Land Holding, LTD (2.79%) Invests in and develops commercial
property. The Company owns and manages prime office and retail space in Hong
Kong.
10. Tianjin Development Holdings LTD (2.75%) Produces, distributes and sells
consumer products such as wine, yarn and textile products, industrial
machinery such as elevators and escalators.
Top 10 equity holdings comprised 36.4% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
17
<PAGE>
Chase Vista Southeast Asian Fund
as of April 30, 1999
(unaudited)
Average Annual Total Returns[dagger]
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 3 Years (11/2/95)
------ ------- ---------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge 17.84% -9.33% -2.98%
With Sales Charge* 11.07% -11.10% -4.61%
Class B Shares
Without CDSC 16.99% -10.03% -3.72%
With CDSC** 11.99% -10.89% -4.50%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
The Fund is currently waiving certain fees. The voluntary waiver may be modified
or terminated at any time, which would reduce performance.
* Sales charge on Class A Shares is 5.75%.
** Assumes a 5% CDSC (contingent deferred sales charge) for the one year period
and a 4% CDSC for the period since inception.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting and
taxations policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the United
States and other nations. The fund may be also subject to the additional risk of
non-diversified "regional" fund investing.
[dagger] The Fund commenced operations on 11/2/95. Class B Shares were
introduced on 11/3/95. Investors should note that information presented for
Class B Shares prior to their introduction is based upon historical expenses of
the predecessor Class A Shares, which are lower than the actual expenses of the
B Shares.
18
<PAGE>
Chase Vista Southeast Asian Fund
as of April 30, 1999
(unaudited)
Life of Fund Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista Southeast Asian Fund compared to its key
benchmarks. This is where you see the Fund's long-term trend. This chart is for
illustrative purposes only.
[Line Chart]
Chase Vista MSCI Lipper Pacific
Southeast Pacific Ex-Japan
Asian Fund Ex-Japan Index Funds Avg.
---------- -------------- ----------
1995 9425 10000 10000
1996 11263.3 11612.1 11170.9
1997 11165.6 11090.1 10730.3
1998 7124.55 7661.95 7150.09
1999 8395.66 11597.2 8038.85
[End Line Chart]
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
Shares of Chase Vista Southeast Asian Fund, the Lipper Pacific Ex-Japan Funds
Average and the MSCI Pacific Ex-Japan Index from November 2, 1995 to April 30,
1999. The performance of the Fund assumes reinvestment of all dividends and
capital gains and includes a 5.75% sales charge. The performance of the average
and the index does not include a sales charge and has been adjusted to reflect
reinvestment of all dividends and capital gains on the securities included in
the benchmark.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
The Lipper Pacific Ex-Japan Funds Average represents the average performance of
a universe of 84 actively managed mutual funds that invest in Asian stock
markets with exception of Japan. Lipper is an independent mutual fund
performance monitor whose results are based on total return and do not reflect a
sales charge.
The MSCI Pacific Ex-Japan Index is a replica (or model) of the performance of
the Pacific regional equity markets, excluding Japan. The index is unmanaged and
reflects the reinvestment of dividends. An individual cannot invest directly in
the index.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting and
taxation policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the United
States and other nations. The Fund may also be subject to the additional risk of
non-diversified "Regional" fund investing.
19
<PAGE>
Chase Vista Southeast Asian Fund
Portfolio of Investments April 30, 1999 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------------
<S> <C> <C>
Long Term Investments -- 78.2%
- ------------------------------------------------------------------
Common Stock -- 77.7%
---------------------
Australia -- 8.3%
Diversified -- 2.8%
53,400 Lang Corp., LTD $ 175,540
Food/Beverage Products -- 1.5%
33,000 Foster's Brewing Group, LTD 96,407
Insurance -- 0.8%
11,000 QBE Insurance Group, LTD 49,283
Metals/Mining -- 1.6%
165,000 M.I.M. Holdings LTD 97,326
Multi-Media -- 1.6%
14,700 Publishing & Broadcasting LTD 98,955
----------
Total Australia 517,511
----------
China -- 7.0%
Agricultural Production/Services -- 0.8%
253,000 First Tractor Co., LTD 50,599
Chemicals -- 1.0%
316,000 Shanghai Petrochemical Company LTD 59,121
Diversified -- 3.5%
52,000 Beijing Enterprises Holdings LTD 85,882
201,000 Tianji Development Holdings LTD 133,564
----------
219,446
----------
Real Estate -- 0.8%
290,000 China Resources Beijing Land 51,263
Textiles -- 0.9%
402,000 Yizheng Chemical Fibre Co., LTD 58,094
----------
Total China 438,523
----------
Hong Kong -- 22.7%
Airlines -- 0.9%
346,000 China Southern Airlines Company
LTD* 53,573
Banking -- 4.3%
175,000 Citic Ka Wah Bank LTD 60,402
5,600 HSBC Holdings PLC@ 208,098
----------
268,500
----------
</TABLE>
See notes to financial statements.
20
<PAGE>
Chase Vista Southeast Asian Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------
<S> <C> <C>
Long Term Investments -- (continued)
- ------------------------------------------------------------
Construction -- 1.5%
46,000 Cheung Kong Infrastructure Holdings $ 96,152
Diversified -- 7.4%
24,000 Citic Pacific LTD 65,031
48,000 First Pacific Company LTD 37,160
20,000 Hutchison Whampoa@ 179,350
32,000 Swire Pacific, LTD, Class A@ 179,608
----------
461,149
----------
Manufacturing -- 1.5%
41,000 Shanghai Industrial Holdings LTD 90,991
Real Estate -- 6.2%
16,000 Cheung Kong Holdings, LTD@ 145,545
88,600 Hong Kong Land Holdings, LTD 135,558
12,000 Sun Hung Kai Properties, LTD 104,513
----------
385,616
----------
Wholesaling -- 0.9%
56,000 Ng Fung Hong LTD 54,192
----------
Total Hong Kong 1,410,173
----------
India -- 5.9%
Automotive -- 2.3%
6,000 Bajaj Auto LTD, GDR 97,500
14,300 Tata Engineering & Locomotive Co.,
LTD 46,904
----------
144,404
----------
Banking -- 0.9%
6,100 State Bank of India, GDR 54,443
Computer Software -- 1.0%
1,500 Infosys Technologies LTD, ADR* 61,969
Construction Materials -- 0.9%
7,500 Gujarat Ambuja Cements LTD 57,225
Consumer Products -- 0.8%
1,800 I.T.C. LTD, GDR 51,084
----------
Total India 369,125
----------
</TABLE>
See notes to financial statements.
21
<PAGE>
Chase Vista Southeast Asian Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -----------------------------------------------------------
<S> <C> <C>
Long Term Investments -- (continued)
- -----------------------------------------------------------
Korea -- 0.0%
Construction -- 0.0%
113 Hyundai Engineering & Construction
Co.* $ 1,060
----------
Philippines -- 1.9%
Food/Beverage Products -- 1.0%
29,600 San Miguel Corp., Class B 63,055
Real Estate -- 0.9%
146,000 Ayala Land, Inc. 53,756
----------
Total Philippines 116,811
----------
Singapore -- 8.0%
Banking -- 3.1%
6,000 Development Bank of Singapore, LTD
(Foreign)@ 63,773
7,000 Overseas Chinese Banking Corp.* 65,722
8,000 United Overseas Bank LTD (Foreign) 61,884
----------
191,379
----------
Multi-Media -- 1.2%
5,000 Singapore Press Holdings LTD 73,812
Real Estate -- 3.7%
100,000 Allgreen Properties LTD@ 60,821
7,000 City Developments, LTD 46,708
68,000 DBS Land, LTD@ 126,082
----------
233,611
----------
Total Singapore 498,802
----------
South Korea -- 9.1%
Banking -- 2.0%
5,300 Shinhan Bank* 126,670
Chemicals -- 2.3%
10,370 Hanwha Chemical Corp.* 84,987
800 Korea Chemical Co. 55,197
----------
140,184
----------
Construction -- 0.9%
1,200 Tae Young Corp. 54,726
Construction Materials -- 0.8%
1,780 Hanil Cement Manufacturing LTD 47,927
</TABLE>
See notes to financial statements.
22
<PAGE>
Chase Vista Southeast Asian Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -----------------------------------------------------------------
<S> <C> <C>
Long Term Investments -- (continued)
- -----------------------------------------------------------------
Electronics/Electrical Equipment -- 1.4%
1,156 Samsung Electronics*@ $ 88,903
Oil & Gas -- 0.9%
1,300 Samchully 57,974
Utilities -- 0.8%
3,000 Korea Electric Power Corp., ADR@ 49,688
----------
Total South Korea 566,072
----------
Taiwan -- 0.9%
Computers/Computer Equipment -- 0.5%
17,000 Acer Peripherals Inc. 29,894
Electronics/Electrical Equipment -- 0.4%
5,000 Hon Hai Precision Industry* 27,218
----------
Total Taiwan 57,112
----------
Thailand -- 13.9%
Banking -- 8.3%
250,000 Siam Commercial Bank 257,653
26,000 Thai Farmers Bank Public Company
LTD* 72,156
328,000 Thai Military Bank 183,381
----------
513,190
----------
Construction -- 1.3%
98,000 Bangkok Expressway Public Co., LTD* 83,176
Oil & Gas -- 2.8%
18,600 PTT Exploration and Production
Public Co., LTD (Foreign)* 171,397
Paper/Forest Products -- 0.4%
36,800 Advance Agro Public Co., LTD 27,763
Telecommunications -- 1.1%
6,200 Advanced Info Service Public Co. LTD 65,819
----------
Total Thailand 861,345
----------
Total Common Stock 4,836,534
----------
(Cost $4,024,327)
</TABLE>
See notes to financial statements.
23
<PAGE>
Chase Vista Southeast Asian Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -------------------------------------------------------------------------
<S> <C> <C>
Long Term Investments -- (continued)
- -------------------------------------------------------------------------
Warrants -- 0.5%
----------------
Hong Kong -- 0.0%
Diversified --
44,600 Guangdong Investment, LTD, $8.00,
Expires 07/30/99 $ 57
1,800 Wharf Holdings, Expires 12/31/99 912
----------
969
----------
Philippines -- 0.5%
Restaurants/Food Services --
43,500 Jollibee Foods Corp., Expires 03/24/03 26,312
----------
Total Warrants 27,281
----------
(Cost $24,095)
Purchased Options -- 0.0%
-------------------------
<CAPTION>
Number of
Contracts
<S> <C> <C>
1 Hang Seng Stock Index Future, Strike
Price of 12,000 (HKD), Expires
May 28, 1999 948
1 Hang Seng Stock Index Future, Strike
Price of 12,000 (HKD), Expires
May 28, 1999 1,168
----------
Total Purchased Options 2,116
(Cost $2,741)
=========================================================================
Total Investments -- 78.2% $4,865,931
(Cost $4,051,163)
=========================================================================
</TABLE>
Long Futures Outstanding
- ------------------------
<TABLE>
<CAPTION>
Number Original Notional Unrealized
of Notional Value at Appreciation/
Contracts Description Value 4/30/99 Depreciation
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
4 Hang Seng Stock Index Future,
Expires May 1999 $330,901 $345,539 $14,638
14 SMX Taiwan Index Future,
Expires May 1999 478,800 451,920 (26,880)
---------
($ 12,242)
=========
</TABLE>
Index
* -- Non-income producing security.
@ -- All or a portion of this security is segregated.
ADR -- American Depositary Receipt.
GDR -- Global Depositary Receipt.
See notes to financial statements.
24
<PAGE>
Chase Vista Japan Fund
as of April 30, 1999
(unaudited)
Fund Facts
<TABLE>
<S> <C> <C>
Objective Capital growth
Primary investments Stocks of companies located in Japan
Suggested investment time frame Long-Term
Market benchmark Tokyo SE (Topix) 1st Section
Index
Lipper Funds category Japan Equity Funds Average
Class A Class B
------- -------
Inception date 11/2/95 11/3/95
Newspaper symbol Not listed Not listed
Net assets $3.1 Million $0.6 Million
</TABLE>
Investment Style/Market Cap
[9-Block Graphic]
Value Blend Growth
----- ----- ------
Large
Med. X
Small
[End Graphic]
25
<PAGE>
Chase Vista Japan Fund
as of April 30, 1999
(unaudited)
How the Fund Performed
Chase Vista Japan Fund, which seeks long-term growth of capital by investing in
the stocks of companies located in Japan, provided shareholders with a total
return of 21.37% (Class A shares, without sales charges) for the six-month
period ended April 30, 1999.
How the Fund Was Managed
Fund performance was helped by the Japanese government's efforts to address the
country's fiscal troubles, and Fund management's decision to take advantage of
this development by investing in sectors that registered relatively good
investment results in this changing environment.
The period began with weak economic conditions weighing heavily on stock prices,
and the global community calling on the Japanese government to address the
country's fiscal troubles to help prevent a potential worldwide economic
slowdown. The Japanese government responded with recommendations for economic
recovery that were received positively by the financial markets.
Japanese equities recorded solid investment results in early 1999 and throughout
much of the first four months of the new year. Investor optimism was also fueled
by the fact that growth prospects for Japanese companies have improved markedly
now that the economic and currency crisis along the Pacific Rim has abated.
Since the Japanese stock market has had a difficult time throughout this decade,
it was not surprising that much of this good news was tempered with high
volatility. For example, during two consecutive days in March, the Nikkei
Composite, Japan's leading stock market index, rose 3.1% one day and advanced by
nearly the same percentage the following day.
Where the Fund May Be Headed
Looking ahead, our forecast for Japanese equities has improved markedly.
Investor interest, both at the retail and institutional level, appears to be
returning to this long embattled market. Moreover, valuations on Japanese stocks
are more attractive now than they have been for some time, giving investors
further impetus to consider these securities for investment.
While the recent bounce back in Japanese equities is encouraging, the country
must still contend with a banking system in need of dire repair, which could
lead to increased volatility in the months ahead. Given this possibility,
careful attention to stock selection will be critically important in helping the
Fund outperform its peer group going forward.
26
<PAGE>
Chase Vista Japan Fund
as of April 30, 1999
(unaudited)
How Much of the Fund Was Invested
[Pie Chart Data]
Investments (71.04%)
Cash/Other (28.96%)
What the Fund Invested In
Percentage of Total Portfolio Investments
[Pie Chart Data]
Consumer Cyclicals (26.5%)
Technology (18.5%)
Utilities (11.1%)
Capital Goods (9.6%)
Basic Materials (9.5%)
Financial (8.4%)
Consumer Staples (5.2%)
Health Care (4.6%)
Transportation (3.0%)
Real Estate (2.7%)
Energy (0.9%)
Top Ten Equity Holdings
1. Futaba (4.65%) Produces and markets vacuum fluorescent flat panel displays
used in automotive and consumer products. The Company also produces Radio
Control Systems for both consumer and industrial applications.
2. NTT Mobile Communication Network, Inc. (4.31%) Provides various
telecommunication services including cellular phones, car phones, pagers and
packet communication services.
3. Fuji Machine Manufacturing Co. LTD (3.93%) Manufactures automated assembly
machines and labor saving machines. The Company's main concentration is
surface mount equipment for electric industry.
4. Nintendo Company LTD (3.77%) Manufactures and markets video games. The
Nintendo Entertainment System and the Super Nintendo Entertainment System
are connected to TV's for home video game play.
5. Secom Co., LTD (3.59%) Provides comprehensive security service. The company
produces on line centralized security systems, home medical services, and
on-line computer aided education services.
6. Nippon Sanso Corp. (3.36%) Produces various kinds of industrial gases
including oxygen, argon, and acetylene. The Company also manufactures and
sells gas-related equipment.
7. Aiwa Co., LTD (3.14%) Manufactures and sells electronic equipment and
electrical machinery. The Company's products are mainly classified into
three lines including audio, visual and information related equipment.
8. Fujisawa Pharmaceutical Co., LTD (3.02%) Makes and sells medicines for human
and veterinary use. It is also involved in the business of cosmetics,
agricultural chemicals, medical instruments.
9. Sony Corp. (2.74%) Develops and manufactures consumer and industrial
electronic equipment. The Company's products include audio and video
equipment, televisions, displays, semiconductors and electronic components.
10. Matsushita Communication Industries (2.64%) Develops and manufactures
telecommunications equipment. The company also produces automobile-related
equipment, audio video equipment, and electronic machinery.
Top 10 equity holdings comprised 35.2% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
27
<PAGE>
Chase Vista Japan Fund
as of April 30, 1999
(unaudited)
Average Annual Total Returns[dagger]
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 3 Years (11/2/95)
------ ------- ---------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge -2.14% -9.02% -4.85%
With Sales Charge* -7.77% -10.80% -6.45%
Class B Shares
Without CDSC -2.80% -9.71% -5.54%
With CDSC** -7.66% -10.56% -6.31%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
* Sales charge on Class A Shares is 5.75%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period,
and a 4% CDSC for the period since inception.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting and
taxations policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the United
States and other nations. The fund may be also subject to the additional risk of
non-diversified "regional" fund investing.
[dagger] The Fund commenced operations on 11/2/95. Class B Shares were
introduced on 11/3/95. Investors should note that information presented for
Class B Shares prior to their introduction is based upon historical expenses of
the predecessor Class A Shares, which are lower than the actual expenses of the
B Shares.
28
<PAGE>
Chase Vista Japan Fund
as of April 30, 1999
(unaudited)
Life of Fund Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista Japan Fund compared to its key benchmarks.
This is where you see the Fund's long-term trend. This chart is for illustrative
purposes only.
[Line Chart]
Chase Vista Tokyo SE Lipper Japan
Japan (Topix) 1st Equity Funds
Fund Section Index Average
---- ------------- -------
1995 9425 10000 10000
1996 10528.8 11816.5 11502.1
1997 8960.5 8616.67 9108.66
1998 8101.46 7327.2 8115.94
1999 7928.22 8868.78 10272.8
[End Line Chart]
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
Shares of Chase Vista Japan Fund, the Lipper Japan Equity Funds Average and the
Tokyo SE (Topix) 1st Section from November 2, 1995 to April 30, 1999. The
performance of the Fund assumes the reinvestment of all dividends and capital
gains and includes a 5.75% sales charge. The performance of the average and the
index does not include a sales charge and has been adjusted to reflect
reinvestment of all dividends and capital gains on the securities included in
the benchmark.
The Fund is currently waiving fees. This voluntary waiver may be modified or
terminated at any time, which would reduce performance.
The Lipper Japan Equity Funds Average represents the average performance of a
universe of 33 actively managed mutual funds that invest primarily in Japanese
stocks. Lipper is an independent mutual fund performance monitor whose results
are based on total return and do not reflect a sales charge.
The Tokyo SE (Topix) 1st Section also known as the Tokyo Price Index, is an
unmanaged capitalization-weighted index of all the companies listed on the First
Section of the Tokyo Stock Exchange. The index is unmanaged and reflects
reinvestment of dividends. An individual cannot invest directly in the index.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting and
taxation policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the Unites
States and other nations. The Fund may be also subject to the additional risk of
non-diversified "regional" fund investing.
29
<PAGE>
Chase Vista Japan Fund
Portfolio of Investments April 30, 1999 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------------
<S> <C> <C>
Long Term Investments -- 73.5%
- ------------------------------------------------------------------
Common Stock -- 73.5%
---------------------
Automotive -- 3.4%
7,000 Fuji Heavy Industries LTD $ 46,916
6,000 Nissan Motor Co., LTD 23,023
4,000 Suzuki Motor Corp. 56,970
----------
126,909
----------
Banking -- 3.0%
2,000 Bank of Tokyo-Mitsubishi 29,524
4,000 Industrial Bank of Japan, LTD 33,344
2,000 Sumitomo Bank 27,077
2,000 The Sanwa Bank, LTD 22,453
----------
112,398
----------
Broadcasting -- 1.6%
11 Fuji Television Network, Inc. 59,902
----------
Business Services -- 2.6%
1,000 Secom Co., LTD 97,687
----------
Chemicals -- 5.1%
6,000 Asahi Chemical Industry Co., LTD@ 34,936
4,000 Kaneka Corp.@ 32,339
26,000 Nippon Sanso Corp. 91,487
1,000 Shin-Etsu Chemical Co., LTD 31,836
----------
190,598
----------
Consumer Products -- 1.4%
2,000 KAO Corp. 50,770
----------
Distribution -- 1.0%
5,000 Mitsui & Co. 36,653
----------
Electronics/Electrical Equipment -- 13.6%
3,000 Aiwa Co., LTD 85,455
8,000 Fujikura LTD 41,689
3,000 Futaba Corp.@ 126,674
200 Keyence Corp. 30,060
1,000 Murata Manufacturing Co., LTD 57,221
300 SMC Corp. 27,672
800 Sony Corp. 74,731
9,000 Toshiba Corp. 60,321
----------
503,823
----------
</TABLE>
See notes to financial statements.
30
<PAGE>
Chase Vista Japan Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -----------------------------------------------------------
<S> <C> <C>
Long Term Investments -- (continued)
- -----------------------------------------------------------
Entertainment/Leisure -- 2.8%
1,100 Nintendo Company LTD $ 102,571
----------
Financial Services -- 2.5%
400 Acom Co., LTD 29,993
1,000 Credit Saison Co., LTD 20,442
16,000 Wako Securities* 41,823
----------
92,258
----------
Food/Beverage Products -- 3.9%
4,000 Ajinomoto Co., Inc. 46,280
4,000 Ashi Breweries@ 52,144
2,000 Nissin Food Products, Co., LTD 43,900
----------
142,324
----------
Home Building Construction -- 1.2%
4,000 Sekisui House, LTD@ 44,805
----------
Insurance -- 0.6%
2,000 Tokio Marine & Fire Insurance Co. 23,307
----------
Machinery & Engineering Equipment -- 6.1%
3,000 Fuji Machine Manufacturing Co
LTD@ 107,070
9,000 Komatsu LTD 53,610
10,000 Tokyo Kikai Seisakusho 64,426
----------
225,106
----------
Metals/Mining -- 1.1%
9,000 Sumitomo Metal Mining Co. 40,868
----------
Oil & Gas -- 0.6%
7,000 Teikoku Oil Co., LTD 23,752
----------
Pharmaceuticals -- 3.4%
5,000 Fujisawa Pharmaceutical Co., LTD 82,104
1,000 Takeda Chemical Industries 43,481
----------
125,585
----------
Real Estate -- 2.0%
4,000 Hankyu Realty Co., LTD 17,493
2,000 Tachihi Enterprise Co. LTD 55,462
----------
72,955
----------
</TABLE>
See notes to financial statements.
31
<PAGE>
Chase Vista Japan Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------
<S> <C> <C>
Long Term Investments -- (continued)
- ------------------------------------------------------------
Retailing -- 5.9%
1,800 Aoyama Trading Co., LTD@ $ 50,066
1,000 Ito-Yokado Co. LTD 61,410
2,000 JUSCO Co., LTD 39,879
1,500 Matsumotokiyoshi 65,725
----------
217,080
----------
Shipping/Transportation -- 2.2%
5 East Japan Railway Co. 29,532
8,000 Nippon Express Co., LTD 52,278
----------
81,810
----------
Steel -- 0.7%
4,000 Yamato Kogyo Co., LTD 27,145
----------
Telecommunications -- 8.2%
1,000 Matsushita Communication
Industries@ 71,799
60 Nippon Telegraph & Telephone Corp. 65,348
60 NTT Data Corp. 47,503
20 NTT Mobile Communication
Network, Inc. 117,290
----------
301,940
----------
Textiles -- 0.6%
2,000 Kuraray Co., LTD@ 22,788
============================================================
Total Investments -- 73.5% $2,723,034
(Cost $2,359,045)
============================================================
</TABLE>
Short Futures Outstanding
- -------------------------
<TABLE>
<CAPTION>
Number Original Notional
of Notional Value at Unrealized
Contracts Description Value 4/30/99 Appreciation
- ----------- ------------------ ---------- ---------- -------------
<S> <C> <C> <C> <C>
9 Nikkei 225 Index
Future June 1999 $607,241 $632,051 $24,810
=======
</TABLE>
Index
* -- Non-income producing security.
@ -- All or a portion of this security is segregated.
ADR -- American Depositary Receipt.
See notes to financial statements.
32
<PAGE>
Chase Vista Latin American Equity Fund
as of April 30, 1999
(unaudited)
Fund Facts
<TABLE>
<S> <C> <C>
Objective Capital growth
Primary investments Common stocks of established companies in
Latin America
Suggested investment time frame Long-Term
Market benchmark MSCI EAFE Index
Lipper Funds category Latin America Funds Average
Class A Class B
------- -------
Inception date 12/1/97 3/24/98
Newspaper symbol Not listed Not listed
Net assets $5.3 Million $.01 Million
</TABLE>
Investment Style/Market Cap
[9-Block Graphic]
Value Blend Growth
----- ----- ------
Large X
Med.
Small
[End Graphic]
33
<PAGE>
Chase Vista Latin American Equity Fund
as of April 30, 1999
(unaudited)
How the Fund Performed
Chase Vista Latin American Equity, which seeks to provide capital growth by
investing in common stocks in Latin America, had a total return of 24.35% (Class
A shares, without sales charges) for the six-month period ended April 30, 1999.
How the Fund Was Managed
Early in the period, Latin American markets enjoyed solid investment results
thanks to waning concerns over the global economic conditions and positive
spillover from the Federal Reserve Board's decision to maintain its easing
monetary policy started last September.
After coming under pressure in January due to Brazil's decision to devalue its
currency, Latin American markets resumed their solid performance in February.
March was an especially good month for stocks in the region, with Brazil, Latin
America's largest economy, posting a 36.8% return in U.S. dollar terms.
The fact that several countries in the region are still under pressure due to
large current account deficits detracted from performance. In this environment,
we focused our research efforts on the types of companies unlikely to be
substantially affected by such macroeconomic realities, most notably, companies
with solid management and good earnings potential in varying economic
environments.
Where the Fund May Be Headed
Our outlook for Latin American equities is favorable. Fundamentals throughout
the region have improved substantially, thanks largely to waning fears over
global economic conditions. Foreign buying has risen sharply in recent months,
and valuations, despite the recent run-up in prices, remain attractive.
Specifically, we have become more optimistic on Brazil's long-term growth
prospects. Not only has the country's economic problems subsided, we are
encouraged by the International Monetary Fund's new program for Brazil,
introduced in March, and the appointment of former Soros speculator Arminio
Fraga to head Brazil's central bank.
Given this favorable outlook, we intend to use any significant market downturn
as an opportunity to ratchet up our exposure to businesses with good long-term
earnings prospects with favorable multiples.
34
<PAGE>
Chase Vista Latin American Equity Fund
as of April 30, 1999
(unaudited)
How Much of the Fund Was Invested
[Pie Chart Data]
Investments (88.40%)
Cash/Other (11.60%)
What the Fund Invested In
Percentage of Total Portfolio Investments
[Pie Chart Data]
Mexico (43.7%)
Brazil (32.8%)
Argentina (10.3%)
Chile (6.8%)
Peru (3.3%)
United States (3.1%)
Top Ten Equity Holdings
1. Telecomunicacoes Brasileiras SA, Sponsored ADR, Preference Shares (7.59%)
Telebras was a holding for the telecommunications sector in Brasil.
2. Centrais Electricas Brasileiras SA (6.87%) The Company plans, finances,
coordinates and supervises expansion and construction projects for electric
companies.
3. Telefonica de Argentina SA, Sponsored ADR (6.84%) Offers telephone and
fixed-link public telecommunications services. The Company provides local
and long distance telephone service to southern Argentina.
4. Companhia Energetica de Minas Gerais (6.52%) The company generates,
transforms, transmits and distributes electric power to industrial,
commercial, residential and rural customers.
5. Cemex SA de CV, Ser. CPO (6.36%) Produces, distributes, markets and sells
cement, ready-mix concrete, aggregates and clinker. The Company has trade
relations with over 60 countries.
6. Grupo Televisa S.A., Ser. CPO (6.25%) Produces and broadcasts television
programs and distributes programs in Spanish to countries worldwide. The
Company also produces and broadcasts programs in Spanish to countries
worldwide.
7. Embotelladora Argos SA, Ser. CPO (6.19%) Bottles and markets soft drinks,
including Coca-Cola, Fanta and Sprite, throughout northwestern Mexico.
8. Corporacion GEO, SA de CV, Ser. B, ADR (6.13%) Designs, develops, constructs
and markets housing developments in Mexico. The developments consist of
two-story, two-bedroom town houses built in communities which include
educational, recreational and shopping facilities.
9. Grupo Elektra, SA de CV, L Shares (5.85%) The Company sells consumer
electronics, major appliances, small household appliances and household
furniture, and offers money transfer services.
10. Grupo Financiero Banorte SA de CV, Ser. B (4.72%) Operates as a holding
company, offering financial services to individuals and corporate clients.
Top 10 equity holdings comprised 63.3% of the Fund's market value of
investments. Fund holdings are subject to change at any time.
35
<PAGE>
Chase Vista Latin American Equity Fund
as of April 30, 1999
(unaudited)
Cumulative Total Returns[dagger]
This table shows the cumulative total returns. This is where you can see the
Fund's short-term performance, which, as with the stock markets, tends to be
more volatile than the long-term trend.
<TABLE>
<CAPTION>
Since
Inception
1 Year (12/1/97)
------ ---------
<S> <C> <C>
Class A Shares
Without Sales Charge -30.11% -21.98%
With Sales Charge* -34.13% -25.19%
Class B Shares
Without CDSC -30.70% -22.45%
With CDSC** -34.09% -24.61%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
* Sales charge on Class A Shares is 5.75%.
** Assumes 5% CDSC (contingent deferred sales charge) for the period since
inception.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting and
taxation policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the United
States and other nations. The Fund may be also subject to the additional risk of
non-diversified "regional" fund investing.
[dagger] The Fund commenced operations on 12/1/97. Class B Shares were
introduced on 3/24/98. Investors should note that information presented for
Class B Shares prior to their introduction is based upon historical expenses of
the predecessor Class A Shares, which are lower than the actual expenses of the
B Shares.
36
<PAGE>
Chase Vista Latin American Equity Fund
as of April 30, 1999
(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 Latin American 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]
Chase Vista MSCI Lipper Latin
Latin American EAFE American
Equity Fund Index Average
----------- ----- -------
1997 9425 10000 10000
1998 9500.4 10439.6 10662
1999 6639.92 8934.28 8268.41
[End Line Chart]
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
Shares of Chase Vista International Equity Fund, the Lipper International Funds
Average and the MSCI EAFE Index from December 1, 1997 to April 30, 1999. The
performance of the Fund assumes reinvestment of all dividends and capital gains
and includes a 5.75% sales charge. The performance of the average and the index
does not include a sales charge and has been adjusted to reflect reinvestment of
all dividends and capital gains on the securities included in the benchmark.
The Fund is currently waiving fees. This voluntary waiver may be modified or
terminated at any time, which would reduce performance.
The Lipper Latin American Funds Average represents the average performance of a
universe of 485 actively managed international stock funds. Lipper is an
independent mutual fund performance monitor whose results are based on total
return and do not reflect a sales charge.
The MSCI EAFE (Europe, Australia, Far East) Index is a replica (or model) of the
performance of the world's equity markets, excluding the U.S. and Canada. The
Index is unmanaged and reflects the reinvestment of dividends. An individual
cannot invest directly in the Index.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting and
taxation policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the Unites
States and other nations.
37
<PAGE>
Chase Vista Latin American Equity Fund
Portfolio of Investments April 30, 1999 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ---------------------------------------------------------------
<S> <C> <C>
Long Term Investments -- 86.0%
- ---------------------------------------------------------------
Common Stock -- 86.0%
---------------------
Argentina -- 9.2%
Oil & Gas -- 3.1%
4,000 YPF Sociedad, ADR $ 168,000
Telecommunications -- 6.1%
8,800 Telefonica de Argentina SA, Sponsored
ADR 328,900
----------
Total Argentina 496,900
----------
Brazil -- 29.1%
Food/Beverage Products -- 3.1%
300,000 Sadia Frigobras SA Industria e
Comercio, Preference Shares 166,368
Steel -- 1.6%
100,000 Confab Industrial SA, Preference
Shares 84,390
Telecommunications -- 7.7%
1,000 Tele Centro Sul Participacoes SA* 53,125
Telecomunicacoes Brasileiras SA,
4,000 Sponsored ADR, Preferred Block 364,750
4,000 Telebras, ADR* 312
812 Telecomunicacoes de Sao Paulo SA,
TELESP, Preference Shares 101
----------
418,288
----------
Utilities -- 16.7%
16,600,000 Centrais Electricas Brasileiras SA 330,206
2,520,000 Companhia de Saneamento Basico do
Estado de Sao Paulo 212,663
13,000,310 Companhia Energetica de Minas
Gerais 313,456
6,000 Companhia Paranaense de Energia-
Copel, ADR 49,125
----------
905,450
----------
Total Brazil 1,574,496
----------
Chile -- 6.0%
Construction Materials -- 3.5%
20,000 Maderas y Sinteticos SA, (MASISA)
Sponsored ADR 192,500
</TABLE>
See notes to financial statements.
38
<PAGE>
Chase Vista Latin American Equity Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -------------------------------------------------------------
<S> <C> <C>
Long Term Investments -- (continued)
- -------------------------------------------------------------
Telecommunications -- 2.5%
5,100 Compania de Telecomunicaciones de
Chile SA, ADR $ 134,831
----------
Total Chile 327,331
----------
Mexico -- 38.8%
Automotive -- 3.8%
93,000 Consorcio Grupo Dina SA* 26,170
75,000 Sanluis Corp., SA de CV, Ser. CPO 180,200
----------
206,370
----------
Broadcasting -- 5.5%
15,000 Grupo Televisa SA, Ser. CPO* 300,334
Construction -- 5.7%
65,710 Cemex SA de CV, Ser. CPO 305,802
Diversified -- 3.5%
100,000 Grupo Imsa, SA de CV, Ser. UBC 187,451
Financial Services -- 4.2%
175,000 Grupo Financiero Banorte SA de CV,
Ser. B,* 226,900
Food/Beverage Products -- 5.5%
250,000 Embotelladoras Argos SA 297,628
Home Building Construction -- 5.4%
70,000 Corporacion GEO, SA de CV, Ser. B,
ADR* 294,705
Retailing -- 5.2%
400,000 Grupo Elektra, SA de CV, L Shares 281,393
----------
Total Mexico 2,100,583
----------
Peru -- 2.9%
Telecommunications -- 2.9%
10,500 CPT Telefonica del Peru SA, ADR 158,157
----------
Total Common Stock 4,657,467
(Cost $3,763,089)
=============================================================
Total Long Term Investments -- 86.0% 4,657,467
(Cost $3,763,089)
=============================================================
</TABLE>
See notes to financial statements.
39
<PAGE>
Chase Vista Latin American Equity Fund
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value (USD)
- -----------------------------------------------------------
<S> <C> <C>
Short Term Investments -- 2.8%
- -----------------------------------------------------------
U. S. Government Agency Obligations -- 2.8%
-------------------------------------------
$150,000 Federal Home Loan Bank, Discount
Note, 4.80%, 05/03/99 $ 150,000
(Cost $150,000)
===========================================================
Total Investments -- 88.8% $4,807,467
(Cost $3,913,089)
===========================================================
</TABLE>
Index
* -- Non-income producing security.
ADR -- American Depositary Receipt.
See notes to financial statements.
40
<PAGE>
Chase Vista International Equity Fund
as of April 30, 1999
(unaudited)
Fund Facts
<TABLE>
<S> <C> <C>
Objective Capital growth
Primary investments Common stocks of established overseas
companies
Suggested investment time frame Long-Term
Market benchmark MSCI EAFE Index
Lipper Funds category International Funds Average
Class A Class B
------- -------
Inception date 12/31/92 11/4/93
Newspaper symbol Intl Eq Intl Eq
Net assets $19.0 Million $8.0 Million
</TABLE>
Investment Style/Market Cap
[9-Block Graphic]
Value Blend Growth
----- ----- ------
Large X
Med.
Small
[End Graphic]
41
<PAGE>
Chase Vista International Equity Fund
as of April 30, 1999
(unaudited)
How the Fund Performed
Chase Vista International Equity Fund, which seeks long-term growth of capital
by investing in the common stocks of established overseas companies, provided
shareholders with a total return of 11.74% (Class A shares, without sales
charges) for the six-month period ended April 30, 1999.
How the Fund Was Managed
Investor optimism over the creation of the 11-country European Monetary Union
helped lift European equities early in the period. In early April, the Fund
enjoyed good results again after the European Central Bank (ECB) decided to cut
short-term interest rates by .50% to help stimulate economic activity. The
market had expected a rate cut of .25%. However, as the period wore on, the
market came under pressure due to a variety of factors, namely uncertainty
surrounding the war in Kosovo, sluggish economic conditions and weakness in the
Euro. At the end of April, the Euro fell to a record low after the U.S.
Department of Commerce reported a stronger-than-expected economic growth rate
for the first quarter.
Japanese stocks contributed positively to performance with strong results in the
second half of the period. Japanese stocks did come under pressure due to
concerns over its troubled economy. However, after the Japanese government
showed signs of addressing these problems, investors came back into the market
and drove prices markedly higher early in 1999.
Southeast Asia showed signs of recovering, as several key economies along the
Pacific Rim recovered from the long economic and currency crisis that has hung
like a cloud over the region for the better part of the last two years. Latin
America also rebounded with good performance, despite a brief pullback in
January when Brazil devalued its currency.
Where the Fund May be Headed
Looking ahead, we continue to be positive on international equity markets. While
the European economy is sluggish, corporations are continuing to reduce costs to
streamline operations and enhance profitability. In addition, inflation remains
benign and interest rates continue to be low on the continent. We have become
more optimistic about the growth prospects for Japanese equities but realize the
market may continue to be volatile until the Japanese government introduces a
meaningful economic reform package that addresses the country's fundamental
economic woes. With the economic and currency crisis along the Pacific Rim no
longer a major concern among investors, we believe southeast Asian markets are
poised for continuation of the rally that began earlier this year. Now that
Brazil's economic troubles have abated, Latin American markets are also in
better position to enjoy solid gains in the coming months.
42
<PAGE>
Chase Vista International Equity Fund
as of April 30, 1999
(unaudited)
How Much of the Fund Was Invested
[Pie Chart Data]
Investments (99.97%)
Cash/Other (0.03%)
What the International Equity Portfolio Invested In
Percentage of Total Portfolio Investments
[Pie Chart Data]
United Kingdom (24.0%)
Japan (15.8%)
Germany (10.2%)
France (9.2%)
Netherlands (6.8%)
Switzerland (6.8%)
Italy (5.4%)
Spain (4.5%)
Brazil (3.1%)
Ireland (2.9%)
Finland (2.8%)
Other (2.6%)
Portugal (2.4%)
Sweden (2.4%)
Greece (1.1%)
Top Ten Equity Holdings of the Portfolio
1. British Petroleum Co., PLC (3.13%) An oil and petrochemicals company. The
Company explores for and produces oil and natural gas; refines, markets, and
supplies petroleum products; and manufactures and markets chemicals.
2. Kamps AG (3.09%) Produces and sells baked goods including breads, cookies,
biscuits and snack food, emphasizing regional specialties. The Company
provides easy-made and frozen food items to chains of independently operated
stores organized on a regional basis.
3. UBS AG (2.69%) Attracts deposits and offers retail, corporate and private
banking services.
4. Vodafone Group PLC (2.54%) Provides telecommunications services and operates
the Vodafone network. The Company's services include cellular radio, wide
area paging, distribution, and value added network services.
5. Royal Bank of Scotland Group PLC (2.51%) Offers services to personal
customers that include bank and savings accounts, credit cards and
mortgages, life assurance and innovative investment products.
6. Daimler Chrysler AG (2.42%) Designs, manufactures and markets automobiles,
light trucks and commercial vehicles worldwide. The Company also
manufactures commercial and military aircraft, defense and aerospace
systems, rail systems, electronics and diesel engines.
7. Cap Gemini Sogeti SA (2.38%) Offers computer consulting services. The
Company offers software products and information systems management, project
management and education and training services.
8. Verenigde Nederlandse Uitgeversbedrijvan Verenigd Bezit (2.12%) An
international publishing company that provides professional and consumer
information. The Company publishes and distributes consumer magazines,
regional newspapers, broadcasting and entertainment, telephone directories
and information services.
9. Telecom Italia SPA (1.84%) Provides fixed telephone service throughout
Italy. The Company also develops specialized data networks and promotes
subscriber use of various systems such as facsimile, private switching and
videotel.
Top 10 equity holdings comprised 24.6% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
43
<PAGE>
Chase Vista International Equity Fund
as of April 30, 1999
(unaudited)
Average Annual Total Returns[dagger]
This table shows the average annual total returns. This is where you can see the
Fund's short-term performance, which, as with the stock markets, tends to be
more volatile than the long-term trend.
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Years (12/31/92)
------ ------- ----------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge -4.06% 4.09% 6.49%
With Sales Charge* -9.58% 2.86% 5.49%
Class B Shares
Without CDSC -4.47% 3.57% 6.03%
With CDSC** -9.04% 3.22% 6.03%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
* Sales charge for Class A Shares is 5.75%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period,
and a 2% CDSC for the period since inception.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting and
taxations policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the United
States and other nations. The fund may be also subject to the additional risk of
non-diversified "regional" fund investing.
[dagger] The Fund commenced operations on 12/31/92. Class B shares were
introduced on 11/4/93. Investors should note that information presented for
Class B prior to their introduction is based upon historical expenses of the
predecessor Class A Shares, which are lower than the actual expenses of the
Class B Shares.
44
<PAGE>
Chase Vista International Equity Fund
as of April 30, 1999
(unaudited)
Life of Fund Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista International Equity Fund compared to its
key benchmarks. This is where you see the Fund's long-term trend. This chart is
for illustrative purposes only.
[Line Chart]
Chase Vista MSCI Lipper
International EAFE International
Equity Fund Index Funds Average
----------- ----- -------------
1992 9425 10000 10000
1993 10273.2 12276 11396.7
1994 11483.6 14354.7 13820.3
1995 10979.3 15200.6 13692.3
1996 12442.9 16878.5 15884.3
1997 12465.7 16878.5 16703.1
1998 14622.9 20124.5 20104
1999 14028.8 22098.7 20698.4
[End Line Chart]
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
Shares of Chase Vista International Equity Fund, the Lipper International Funds
Average and the MSCI EAFE Index from December 31, 1992 to April 30, 1999. The
performance of the Fund assumes reinvestment of all dividends and capital gains
and includes a 5.75% sales charge. The performance of the average and the index
does not include a sales charge and has been adjusted to reflect reinvestment of
all dividends and capital gains on the securities included in the benchmark.
The Fund is currently waiving fees. This voluntary waiver may be modified or
terminated at any time, which would reduce performance.
The Lipper International Funds Average represents the average performance of a
universe of 485 actively managed international stock funds. Lipper is an
independent mutual fund performance monitor whose results are based on total
return and do not reflect a sales charge.
The MSCI EAFE (Europe, Australia, Far East) Index is a replica (or model) of the
performance of the world's equity markets, excluding the U.S. and Canada. The
Index is unmanaged and reflects the reinvestment of dividends. An individual
cannot invest directly in the Index.
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting and
taxation policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the Unites
States and other nations.
45
<PAGE>
Chase Vista Funds
Statement of Assets and Liabilities April 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Southeast
European Asian Japan
Fund Fund Fund
----------- ---------- ----------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Note 1) .................. $57,018,281 $4,865,931 $2,723,034
Cash ............................................ -- 266,606 335,202
Foreign Currency @ .............................. 1,181,798 440,023# 399,353
Receivables:
Variation margin on futures contracts .......... -- -- 30,194
Open forward currency contracts ................ 794 271 --
Investment securities sold ..................... 3,240,233 758,657 --
Interest and dividends ......................... 115,885 7,612 6,920
Fund shares sold ............................... 509,613 330,485 308,121
Expense reimbursement from
Distributor .................................... -- 18,103 15,170
Other assets .................................... 4,916 199,765 12,394
----------- ---------- ----------
Total Assets .................................. 62,071,520 6,887,453 3,830,388
----------- ---------- ----------
LIABILITIES:
Payables:
To Custodian ................................... 532,729 -- --
Investment securities purchased ................ 2,722,318 595,962 91,060
Fund shares redeemed ........................... 347,925 8,604 6,131
Variation margin on futures contracts .......... -- 12,242 --
Premium received from written options -- 3,413 --
Other .......................................... -- -- --
Accrued liabilities: (Note 2)
Investment advisory fees ....................... 33,601 -- --
Administration fees ............................ 7,199 -- --
Shareholder servicing fees ..................... 2,677 -- --
Distribution fees .............................. 17,354 616 351
Custodian ...................................... 27,470 22,862 2,759
Other .......................................... 65,599 21,500 26,039
----------- ---------- ----------
Total Liabilities ............................. 3,756,872 665,199 126,340
----------- ---------- ----------
NET ASSETS:
Paid in capital ................................. 52,371,099 9,874,805 5,084,081
Accumulated undistributed net investment
income (loss) .................................. (268,621) (43,739) 4,083
Accumulated undistributed net realized
gain (loss) on investments, futures and
foreign exchange transactions .................. 1,958,681 (4,406,720) (1,775,955)
Net unrealized appreciation of
investments, futures and foreign
exchange transactions .......................... 4,253,489 797,908 391,839
----------- ---------- ----------
Total Net Assets .................................. $58,314,648 $6,222,254 $3,704,048
=========== ========== ==========
Shares of beneficial interest outstanding
($0.01 par value; unlimited number of shares
authorized):
Class A Shares .................................. 2,848,495 603,115 398,499
Class B Shares .................................. 704,667 136,208 78,904
Class C Shares .................................. 68,729 -- --
Net Asset Value:
Class A Shares (and redemption price) ........... $ 16.16 $ 8.45 $ 7.78
Class B Shares* ................................. $ 15.89 $ 8.27 $ 7.65
Class C Shares* ................................. $ 15.89 -- --
Class A Maximum Public Offering Price
Per Share (net asset value/94.25%) ............... $ 17.15 $ 8.97 $ 8.25
=========== ========== ==========
Cost of Investments ............................... $52,761,796 $4,051,163 $2,359,045
=========== ========== ==========
@Cost of Foreign Currency ......................... $ 1,184,808 $ 440,791 $ 401,907
=========== ========== ==========
</TABLE>
- --------------
# A portion of the foreign cash is pledged to cover written options outstanding
in the Southeast Asian Fund.
* Redemption price may be reduced by contingent deferred sales charge.
See notes to financial statements.
46
<PAGE>
Chase Vista Funds
Statement of Assets and Liabilities (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Latin International
American Equity Equity
Fund Fund
--------------- -------------
<S> <C> <C>
ASSETS:
Investments, at value (Note 1) ......................... $ 4,807,467 $27,115,589
Cash ................................................... 10,787 --
Foreign Currency @ ..................................... -- --
Receivables:
Variation margin ...................................... -- --
Open forward currency contracts ....................... -- --
Investment securities sold ............................ 287,710 --
Interest and dividends ................................ 37,926 --
Fund shares sold ...................................... 280,500 7,017
Expense reimbursement from Distributor ................ 13,632 --
Other assets ........................................... 6,719 188
----------- -----------
Total Assets ......................................... 5,444,741 27,122,794
----------- -----------
LIABILITIES:
Payables:
To Custodian .......................................... -- --
Investment securities purchased ....................... -- --
Fund shares redeemed .................................. -- 1,711
Variation margin on futures contracts ................. -- --
Premium received from written options ................. -- --
Other ................................................. -- 23,338
Accrued liabilities: (Note 2)
Investment advisory fees .............................. -- --
Administration fees ................................... -- --
Shareholder servicing fees ............................ -- 4,011
Distribution fees ..................................... 48 4,776
Custodian ............................................. 2,000 --
Other ................................................. 25,600 49,068
----------- -----------
Total Liabilities .................................... 27,648 82,904
----------- -----------
NET ASSETS:
Paid in capital ........................................ 7,639,287 23,101,112
Accumulated undistributed net investment
income (loss) ......................................... 59,890 (65,077)
Accumulated undistributed net realized gain (loss) on
investments, futures and foreign exchange
transactions .......................................... (3,174,798) 1,348,168
Net unrealized appreciation of investments, futures, and
foreign exchange transactions ......................... 892,714 2,655,687
----------- -----------
Total Net Assets ......................................... $ 5,417,093 $27,039,890
=========== ===========
Shares of beneficial interest outstanding
($0.01 par value; unlimited number of shares
authorized):
Class A Shares ......................................... 777,891 1,472,658
Class B Shares ......................................... 12,207 630,330
Class C Shares ......................................... -- --
Net Asset Value:
Class A Shares (and redemption price) .................. $6.86 $12.92
Class B Shares* ........................................ $6.83 $12.71
Class C Shares* ........................................ -- --
Class A Maximum Public Offering Price Per Share
(net asset value/94.25%) ................................ $7.28 $13.71
=========== ===========
Cost of Investments ...................................... $ 3,913,089 --
=========== ===========
Cost of Foreign Currency ................................. -- --
=========== ===========
</TABLE>
- --------------
* Redemption price may be reduced by contingent deferred sales charge.
See notes to financial statements.
47
<PAGE>
Chase Vista Funds
Statement of Operations For the six months ended April 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Southeast
European Asian Japan
Fund Fund Fund
---------- ---------- --------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend ........................................... $ 295,015 $ 27,504 $ 12,322
Interest ........................................... 43,880 13,695 2,289
Investment income from Portfolio ................... -- -- --
Foreign taxes withheld ............................. (39,476) (1,206) (1,848)
Expenses from Portfolio ............................ -- -- --
---------- ---------- --------
Total investment income ........................... 299,419 39,993 12,763
---------- ---------- --------
EXPENSES: (Note 2)
Investment advisory fees ........................... 273,701 23,524 12,785
Administration fees ................................ 41,055 3,518 1,918
Shareholder servicing fees ......................... 14,832 1,197 580
Distribution fees .................................. 98,089 8,287 4,357
Custodian fees ..................................... 49,266 38,903 16,757
Printing and postage ............................... 22,476 3,000 --
Professional fees .................................. 19,337 18,821 17,788
Registration costs ................................. 18,529 11,147 10,136
Transfer agent fees ................................ 74,127 35,138 22,362
Trustees fees and expenses ......................... 1,369 118 64
Other .............................................. 7,594 6,125 2,716
---------- ---------- --------
Total expenses .................................... 620,375 149,778 89,463
---------- ---------- --------
Less amounts waived (Note 2E) ........................ 96,901 32,933 17,899
Less expenses borne by the Distributor ............... -- 72,069 47,449
---------- ---------- --------
Net expenses ....................................... 523,474 44,776 24,115
---------- ---------- --------
Net investment income (loss) ....................... (224,055) (4,783) (11,352)
---------- ---------- --------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments ........................................ 2,230,606 864,759 217,809
Futures transactions ............................... 1,801 131,543 42,635
Foreign currency transactions ...................... (145,672) 8,675 (37,242)
Change in net unrealized appreciation/ depreciation on:
Investments ....................................... 3,988,787 675,941 282,722
Futures transactions .............................. -- (37,591) 25,582
Foreign currency transactions ..................... 15,880 (16,146) (5,360)
---------- ---------- --------
Net realized and unrealized gain ................... 6,091,402 1,627,181 526,146
---------- ---------- --------
Net increase in net assets from operations ......... $5,867,347 $1,622,398 $514,794
========== ========== ========
</TABLE>
See notes to financial statements.
48
<PAGE>
Chase Vista Funds
Statement of Operations (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Latin International
American Equity Equity
Fund Fund
--------------- -------------
<S> <C> <C>
INVESTMENT INCOME:
Dividend ............................................ $ 150,474 $ --
Interest ............................................ 8,053 --
Investment income from Portfolio .................... -- 196,614
Foreign taxes withheld .............................. (9,511) (24,769)
Expenses from Portfolio ............................. -- (99,131)
----------- ----------
Total investment income ............................ 149,016 72,714
----------- ----------
EXPENSES: (Note 2)
Investment advisory fees ............................ 29,427 --
Administration fees ................................. 4,414 13,120
Shareholder servicing fees .......................... 7,357 32,802
Distribution fees ................................... 7,487 51,778
Custodian fees ...................................... 28,392 --
Printing and postage ................................ 4,138 35,124
Professional fees ................................... 6,102 4,987
Registration costs .................................. 11,013 12,410
Transfer agent fees ................................. 29,992 72,163
Trustees fees and expenses .......................... 147 394
Other ............................................... 3,614 5,684
----------- ----------
Total expenses ..................................... 132,083 228,462
----------- ----------
Less amounts waived (Note 2E) ......................... 48,490 45,674
Less expenses borne by the Distributor ................ 31,900 --
----------- ----------
Net expenses ........................................ 51,693 182,788
----------- ----------
Net investment income (loss) ........................ 97,323 (110,074)
----------- ----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments ......................................... (1,007,112) 1,381,093
Futures transactions ................................ (87,321) 33,989
Foreign currency transactions ....................... -- 15,914
Change in net unrealized appreciation/depreciation on:
Investments ........................................ 2,159,135 1,688,876
Futures transactions ............................... (1,247) --
Foreign currency transactions ...................... -- --
----------- ----------
Net realized and unrealized gain .................... 1,063,455 3,119,872
----------- ----------
Net increase in net assets from operations .......... $ 1,160,778 $3,009,798
=========== ==========
</TABLE>
See notes to financial statements.
49
<PAGE>
Chase Vista Funds
Statement of Changes in Net Assets For the periods indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
European Fund Southeast Asian Fund
------------------------------ ------------------------------
11/01/98 Year 11/01/98 Year
Through Ended Through Ended
04/30/99 10/31/98 04/30/99 10/31/98
-------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) ............. $ (224,055) $ (63,427) $ (4,783) $ 34,147
Net realized gain (loss) on investments,
futures and foreign currency
transactions ............................ 2,086,735 507,094 1,004,977 (4,334,222)
Change in net unrealized appreciation/
depreciation on investments, futures
and foreign exchange .................... 4,004,667 (512,211) 622,204 2,604,641
----------- ----------- ---------- -----------
Increase (decrease) in net assets from
operations .............................. 5,867,347 (68,544) 1,622,398 (1,695,434)
----------- ----------- ---------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
FROM: (Note 1C)
Net investment income .................... (251,426) (270,343) -- --
Net realized gain on investment
transactions ............................ (363,917) (1,883,844) -- --
Tax return of capital .................... -- -- -- (36,196)
----------- ----------- ---------- -----------
Total distributions ..................... (615,343) (2,154,187) -- (36,196)
----------- ----------- ---------- -----------
Net increase (decrease) in net assets from
shares of beneficial interest transactions
(Note 5) ................................. 9,862,318 30,240,238 694,874 (1,981,050)
----------- ----------- ---------- -----------
Total increase (decrease) ............... 15,114,322 28,017,507 2,317,272 (3,712,680)
NET ASSETS:
Beginning of period ...................... 43,200,326 15,182,819 3,904,982 7,617,662
----------- ----------- ---------- -----------
End of period ............................ $58,314,648 $43,200,326 $6,222,254 $ 3,904,982
=========== =========== ========== ===========
<CAPTION>
International
Latin American Equity Equity
Japan Fund Fund Fund
----------------------------- ------------------------------- --------------
11/01/98 Year 11/01/98 12/1/97* 11/01/98
Through Ended Through Through Through
04/30/99 10/31/98 04/30/99 10/31/98 04/30/99
------------- --------------- --------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) ............. $ (11,352) $ (26,325) $ 97,323 $ 166,000 $ (110,074)
Net realized gain (loss) on investments,
futures and foreign currency
transactions ............................ 223,202 (1,738,411) (1,094,433) (2,131,286) 1,430,996
Change in net unrealized appreciation/
depreciation on investments, futures
and foreign exchange .................... 302,944 476,872 2,157,888 (1,265,174) 1,688,876
---------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets from
operations .............................. 514,794 (1,287,864) 1,160,778 (3,230,460) 3,009,798
---------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
FROM: (Note 1C)
Net investment income .................... -- (187,298) (37,347) (115,165) --
Net realized gain on investment
transactions ............................ -- -- -- -- (1,077,930)
Tax return of capital .................... -- (98,133) -- (27,259) --
---------- ----------- ----------- ----------- -----------
Total distributions ..................... -- (285,431) (37,347) (142,424) (1,077,930)
---------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets from
shares of beneficial interest transactions
(Note 5) ................................. 1,028,314 (3,166,483) (2,050,571) 9,717,117 (294,140)
---------- ----------- ----------- ----------- -----------
Total increase (decrease) ............... 1,543,108 (4,739,778) (927,140) 6,344,233 1,637,728
NET ASSETS:
Beginning of period ...................... 2,160,940 6,900,718 6,344,233 -- 25,402,162
---------- ----------- ----------- ----------- -----------
End of period ............................ $3,704,048 $ 2,160,940 $ 5,417,093 $ 6,344,233 $27,039,890
========== =========== =========== =========== ===========
<CAPTION>
International
Equity
Fund
--------------
Year
Ended
10/31/98
--------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) ............. $ (166,656)
Net realized gain (loss) on investments,
futures and foreign currency
transactions ............................ 1,109,481
Change in net unrealized appreciation/
depreciation on investments, futures
and foreign exchange .................... 431,677
-----------
Increase (decrease) in net assets from
operations .............................. 1,374,502
-----------
DISTRIBUTIONS TO SHAREHOLDERS
FROM: (Note 1C)
Net investment income .................... (123,572)
Net realized gain on investment
transactions ............................ (678,827)
Tax return of capital .................... --
-----------
Total distributions ..................... (802,399)
-----------
Net increase (decrease) in net assets from
shares of beneficial interest transactions
(Note 5) ................................. (6,425,985)
-----------
Total increase (decrease) ............... (5,853,882)
NET ASSETS:
Beginning of period ...................... 31,256,044
-----------
End of period ............................ $25,402,162
===========
</TABLE>
- -------
* The fund commenced operations 12/01/97.
See notes to financial statements.
50
<PAGE>
Chase Vista Funds
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies -- Mutual Fund Group (the
"Trust") was organized on May 11, 1987 as a Massachusetts Business Trust, and is
registered under the Investment Company Act of 1940, as amended, (the "1940
Act") as an open-end management investment company. Effective March 16, 1998,
the Vista Family of Mutual Funds changed its name to the Chase Vista Funds.
European Fund ("CVEF"), Southeast Asian Fund ("CVSEAF"), Japan Fund ("CVJF"),
Latin American Equity Fund ("CVLAEF") and International Equity Fund ("CVIEF"),
collectively, the "Funds", are five separate series of the Trust. CVLAEF
commenced operations on December 1, 1997. The Funds (except for CVEF) each offer
two classes of shares. CVEF offers three classes of shares. Class A shares
generally provide for a front-end sales charge while Class B and Class C shares
provide for a contingent deferred sales charge. All classes of shares have equal
rights as to earnings, assets and voting privileges except that each class may
bear different distribution and shareholder servicing fees and each class has
exclusive voting rights with respect to its distribution plan.
The following is a summary of significant accounting policies followed by the
Funds:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
A. CVIEF
Since inception, the CVIEF has utilized the Master Feeder Fund Structure.
CVIEF seeks to achieve its investment objective by investing all of its
investable assets of the Fund in the International Equity Portfolio (the
"Portfolio"). The Portfolio, like the Fund, is an open-end management
investment company having the same investment objectives as the Fund. As of
April 30, 1999 CVIEF owned 99.99% of the Portfolio. The financial
statements of the Portfolio, including the portfolio of investments, are
included elsewhere in this report and should be read in conjunction with
the financial statements of the Fund.
1. Valuation of Investments -- CVIEF records its investments in the
Portfolio at value. Securities of the Portfolio are recorded at value
as more fully discussed in the notes to those financial statements.
2. Foreign Currency Translations -- The books and records of the
Portfolio are maintained in U.S. dollars, the foreign currency
translation policy is more fully discussed in the notes to those
financial statements.
3. Investment Income -- CVIEF records daily its pro-rata share of the
Portfolio's income and expenses, and realized and unrealized gains and
losses. In addition, the Fund accrues its own expenses daily as
incurred. Realized gain/losses and changes in unrealized
appreciation/depreciation represent the Fund's share of such elements
allocated from the Portfolio.
B. CVEF, CVSEAF, CVJF and CVLAEF
Investments in international markets may involve certain considerations and
risks not typically associated with investments in the United States.
Future economic and political developments in foreign countries could
adversely affect the liquidity or value, or both, of such securities in
which the Fund is invested.
1. Valuation of Investments -- Equity securities, purchased options
and futures contracts are valued at the last sale price on the
exchange on which they are primarily traded, including the NASDAQ
National Market. Securities for which sale prices are not available
and other over-the-counter securities are valued at the last quoted
bid price. Bonds and other fixed income securities (other than
short-term obligations), including listed issues, are valued on the
basis of valuations supplied by pricing services or by matrix pricing
systems of a major dealer in bonds. Short-term debt securities with 61
days or more to maturity at time of
51
<PAGE>
Chase Vista Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
purchase are valued, through the 61st day prior to maturity, at market
value based on quotations obtained from market makers or other
appropriate sources; thereafter, the value on the 61st day is
amortized on a straight-line basis over the remaining number of days
to maturity. Short-term investments with 60 days or less to maturity
at time of purchase are valued at amortized cost, which approximates
market.
Portfolio securities for which there are no such quotations or
valuations are valued at fair value as determined in good faith by or
at the direction of the Trustees.
2. Repurchase Agreements -- It is the Fund's policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government
Agency securities. All collateral is held by the Fund'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 Fund may be delayed or limited.
3. Futures Contracts -- When a fund enters into a futures contract, it
makes an initial margin deposit in a segregated account, either in
cash or liquid securities. Thereafter, the futures contract is marked
to market and the fund makes (or receives) additional cash payments
daily to the broker. Changes in the value of the contract are recorded
as unrealized appreciation/depreciation until the contract is closed
or settled.
The Funds may enter into futures contracts only on exchanges or boards
of trade. The exchange or board of trade acts as the counterparty to
each futures transaction, therefore, the Fund's credit risk is limited
to failure of the exchange or board of trade.
Index futures contracts are used to control the asset mix of the
portfolios in the most efficient manner, allowing the Funds to adjust
country exposures while incurring minimal transaction costs. Short
index futures contracts are used for hedging purposes, i.e. to reduce
the exposure to equities. Long index futures contracts are used to
gain exposure to equities, when it is anticipated that this will be
more efficient than buying stocks directly. Use of long futures
contracts subjects the Fund to risk of loss up to the amount of the
nominal value of the futures contracts as shown in the Portfolio of
Investments. Use of short futures contracts subject the Fund to
unlimited risk.
The Funds held open futures contracts as of April 30, 1999 as listed
on the Portfolio of Investments.
4. Written Options -- When a fund writes an option on a futures
contract, an equal amount to the premium received by the fund is
included in the fund's Statement of Assets and Liabilities as an asset
and corresponding liability. The amount of the liability is adjusted
daily to reflect the current market value of the written option and
the change is recorded in a corresponding unrealized gain or loss
account. When a written option expires on its stipulated expiration
date, or when a closing transaction is entered into, the related
liability is extinguished and the fund realizes a gain or loss if the
cost of the closing transaction exceeds the premium received when the
option was written.
The Funds write options on stock index securities futures. These
options are settled for cash and subject the Funds to market risk in
excess of the amounts that are reflected in the Statement of Assets
and Liabilities. The Funds, however, are not subject to credit risk on
written options as the counterparty has already performed its
obligation by paying a premium at the inception of the contract.
52
<PAGE>
Chase Vista Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
As of April 30, 1999, the Funds had outstanding written options as
detailed in Note 8.
5. Foreign Currency Translation -- The books and records of the Funds
are maintained in U.S. dollars. Foreign currency amounts are
translated into U.S. dollars at the prevailing exchange rates, or at
the mean of the current bid and asked prices, of such currencies
against the U.S. dollar as quoted by a major bank, on the following
basis:
a. Market value of investment securities and other assets and
liabilities: at the rate of exchange at the valuation date.
b. Purchases and sales of investment securities, income and
expenses: at the rates of exchange prevailing on the respective
dates of such transactions.
Although the net assets of the Funds are presented at the foreign
exchange rates and market values at the close of the periods, the
Funds do not isolate that portion of the results of operations arising
as a result of changes in the foreign exchange rates from the
fluctuations arising from changes in the market prices of securities
held or sold during the year. Accordingly, such realized foreign
currency gains (losses) are included in the reported net realized
gains (losses) on investment transactions.
Reported realized foreign currency gains or losses arise from
disposition of foreign currency, currency gains or losses realized
between the trade and settlement dates on securities transactions, and
the difference between the amounts of dividends, interest, and foreign
withholding taxes recorded on the Funds' books on the transaction date
and the U.S. dollar equivalent of the amounts actually received or
paid. Unrealized foreign exchange gains and losses arise from changes
(due to the changes in the exchange rate) in the value of foreign
currency and other assets and liabilities denominated in foreign
currencies which are held at period end.
6. Forward Foreign Currency Exchange Contracts -- The Funds may enter
into forward foreign currency contracts (obligations to purchase or
sell foreign currency in the future on a date and price fixed at the
time the contracts are entered into) to hedge the Fund against
fluctuations in the value of its assets or liabilities due to change
in the value of foreign currencies. Each day the forward contract is
open, changes in the value of the contract are recognized as
unrealized gains or losses by "marking to market". When the forward
contract is closed, or the delivery of the currency is made or taken,
the Fund records a realized gain or loss equal to the difference
between the proceeds from (or cost of) the closing transaction and the
Fund's basis in the contract. The Funds are subject to off-balance
sheet risk to the extent of the value of the contracts for purchases
of currency and in an unlimited amount for sales of currency.
7. 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.
8. 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 0.075% per
annum on the average daily amount of the available commitment, which
is allocated on a pro-rata basis to the funds. The
53
<PAGE>
Chase Vista Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
commitment fee is included in Other expenses on the Statement of
Operations. Borrowings are payable on demand.
The Funds had no borrowings outstanding at April 30, 1999 nor at any
time during the year.
C. General Policies
1. Federal Income Taxes -- Each Fund is treated as a separate taxable
entity for Federal income tax purposes. The 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 provision for Federal
income or excise tax is necessary.
2. Distributions to Shareholders -- Dividends paid to shareholders are
recorded on the ex-dividend date. The amount of dividends and
distributions from net investment income and net realized capital
gains is determined in accordance with Federal income tax regulations,
which may differ from generally accepted accounting principles. To the
extent these "book/tax" differences are permanent in nature (i.e.,
that they result from other than timing of recognition -- "temporary
differences") such amounts are reclassified within the capital
accounts based on their Federal tax-basis treatment. Dividends and
distributions which exceed net investment income or net realized
capital gains for financial reporting purposes but not for tax
purposes are reported as distributions in excess of net investment
income or net realized capital gains.
3. Expenses -- Expenses of the Trust directly attributable to a Fund
are charged to that Fund; other expenses are allocated proportionately
among each Fund within the trust in relation to the net assets of each
Fund or on another reasonable basis. In calculating the net asset
value per share of each class, investment income, realized and
unrealized gains and losses and expenses other than class specific
expenses, are allocated daily to each class of shares based upon the
proportion of net assets of each class at the beginning of each day.
2. Fees and Other Transactions with Affiliates
A. Investment Advisory Fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank ("Chase" or the "Advisor"), acts as
the Investment Advisor to the CVEF, CVSEAF, CVJF, and CVLAEF. Chase is a
direct wholly-owned subsidiary of The Chase Manhattan Corporation. As
Investment Advisor, Chase supervises the investments of the Funds and for
such services is paid a fee. The fee is computed daily and paid monthly at
an annual rate equal to 1.00% of the average daily net assets of each Fund.
The Advisor voluntarily waived all or a portion of its fees as outlined in
Note 2.E below.
Chase Asset Management, Inc. ("CAM"), a registered investment advisor, is
the sub-investment advisor to each Fund, pursuant to a Sub-Investment
Advisory Agreement between CAM and Chase. CAM is a wholly owned subsidiary
of Chase and is entitled to receive a fee, payable by Chase from its
advisory fee, at an annual rate equal to 0.50% of each Fund's average daily
net assets.
B. Shareholder Servicing Fees -- The Trust has adopted an Administrative
Services Plan for the Class B Shares of all of the Funds and Class A of
CVIEF and CVLAEF, and Class C of CVEF, which, among other things, provides
that the Trust on behalf of the Funds may obtain the services of one or
more Shareholder Servicing Agents. For its services, the Shareholder
Servicing Agent will receive a fee that is computed daily and paid monthly
at an annual rate equal to 0.25% of the average daily net assets of the
Class B and C Shares of each Fund and for the Class A Shares of CVLAEF and
CVIEF. No Shareholder Servicing Fees have been charged to Class A Shares of
54
<PAGE>
Chase Vista Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
CVEF, CVSEAF and CVJF. The Shareholder Servicing Agents voluntarily waived
all or a portion of their fees as outlined in Note 2.E. below.
Since inception, Chase, and certain affiliates have been the only
Shareholder Servicing Agents of the Funds.
C. Distribution and Sub-Administration Fees -- Pursuant to a Distribution
and Sub-Administration Agreement, Vista Fund Distributors, Inc. (the
"Distributor" or "VFD"), a wholly owned subsidiary of The BISYS Group,
Inc., acts as the Trust's exclusive underwriter and promotes and arranges
for the sale of each Fund's shares. In addition, the Distributor provides
certain sub-administration services to the Trust, including providing
officers, clerical staff and office space for an annual fee of 0.05% of the
average daily net assets of each Fund. The Trustees have adopted
Distribution Plans (the "Distribution Plans") for Class A and B shares of
the Funds in accordance with Rule 12b-1 under the 1940 Act. The Class A
Distribution Plans provide that each Fund shall pay distribution fees,
including payments to the Distributor, at annual rates not to exceed 0.25%
of the average daily net assets of the Class A Shares of each Fund for
distribution services. The Class B and Class C 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 and Class C Shares for distribution services.
The Distributor voluntarily waived all or a portion of its fees as outlined
in Note 2.E. below.
D. Administration Fee -- Pursuant to an Administration Agreement, Chase
(the "Administrator") provides certain administration services to the
Trust. For these services and facilities, the Administrator receives from
CVEF, CVSEAF, CVJF, and CVLAEF a fee computed at the annual rate equal to
0.10% of the respective Fund's average daily net assets and from CVIEF at
the annual rate equal to 0.05% of the Fund's average daily net assets. The
Administrator voluntarily waived all or a portion of the administration
fees as outlined in Note 2.E. below.
E. Waivers of fees -- For the six months ended April 30, 1999, the
Administrator, Investment Adviser, Distributor and Shareholder Servicing
Agents voluntarily waived fees for each of the Funds as follows:
<TABLE>
<CAPTION>
CVEF CVSEAF CVJF CVLAEF CVIEF
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Fee Waivers
-----------
Administration .............. $ -- $ 3,518 $ 1,918 $ 4,414 $13,050
Distribution fees ........... -- 4,694 2,616 7,292 23,188
Shareholder servicing
fees ....................... -- 1,197 580 7,357 9,436
Investment Advisory ......... 96,901 23,524 12,785 29,427 --
------- ------- ------- ------- -------
Total ..................... $96,901 $32,933 $17,899 $48,490 $45,674
======= ======= ======= ======= =======
</TABLE>
F. Other -- Certain officers of the Trust are officers of Vista Fund
Distributors, Inc. or of its parent corporation, BISYS.
Chase provides portfolio accounting and custody services for CVEF, CVSEAF,
CVJF, and CVLAEF. Compensation for such services is presented in the
Statement of Operations as custodian fees.
3. Investment Transactions -- For six months ended April 30, 1999, purchases and
sales of investments (excluding short-term investments) were as follows:
<TABLE>
<CAPTION>
CVEF CVSEAF CVJF CVLAEF
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Purchases (excluding
U.S. Government) $53,896,671 $6,991,779 $2,236,981 $2,191,634
Sales (excluding U.S.
Government) ......... 40,991,261 6,109,396 1,860,033 3,972,733
</TABLE>
55
<PAGE>
Chase Vista Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
4. Federal Income Tax Matters -- For Federal income tax purposes, the cost and
unrealized appreciation (depreciation) in value of the investment securities at
six months ended April 30, 1999, are as follows:
<TABLE>
<CAPTION>
Latin
Southeast American
European Asian Japan Equity
Fund Fund Fund Fund
------------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Aggregate cost ....................... $52,761,796 $4,051,163 $2,359,045 $3,913,089
----------- ---------- ---------- ----------
Gross unrealized appreciation ........ $ 6,230,543 $ 845,384 $ 431,637 $1,043,805
Gross unrealized depreciation ........ (1,974,058) (30,616) (67,648) (149,427)
----------- ---------- ---------- ----------
Net unrealized appreciation .......... $ 4,256,485 $ 814,768 $ 363,989 $ 894,378
=========== ========== ========== ==========
</TABLE>
5. Transactions in Shares of Beneficial Interest -- Transactions in Shares of
Beneficial Interest were as follows:
<TABLE>
<CAPTION>
European Fund
------------------------------------------------------
11/01/98 Through Year Ended
4/30/99 10/31/98
------------------------ -------------------------
Amount Shares Amount Shares
Class A ----------- -------- ------------- -----------
<S> <C> <C> <C> <C>
Shares sold .................... $15,412,460 985,849 $24,838,015 1,566,625
Shares issued in reinvestment of
distributions ................ 218,083 13,910 1,134,729 90,297
Shares redeemed ................ (7,556,454) (482,445) (3,631,341) (245,168)
----------- -------- ----------- ---------
Net increase (decrease) in Trust
shares outstanding ........... $ 8,074,044 517,314 $22,341,403 1,411,754
=========== ======== =========== =========
<CAPTION>
European Fund
------------------------------------------------------
11/01/98 Through Year Ended
4/30/99 10/31/98
------------------------ -------------------------
Class B Amount Shares Amount Shares
----------- -------- ----------- ---------
<S> <C> <C> <C> <C>
Shares sold .................... $ 5,652,227 361,870 $ 9,810,431 635,367
Shares issued in reinvestment of
distributions ................ 81,769 5,314 290,599 23,583
Shares redeemed ................ (5,012,498) (326,737) (2,202,195) (153,965)
----------- -------- ----------- ---------
Net increase (decrease) in Trust
shares outstanding ........... $ 721,498 40,447 $ 7,898,835 504,985
=========== ======== =========== =========
<CAPTION>
European Fund
------------------------
11/02/98** Through
4/30/99
------------------------
Class C Amount Shares
----------- --------
<S> <C> <C>
Shares sold .................... $ 1,204,337 77,727
Shares issued in reinvestment of
distributions ................ 428 28
Shares redeemed ................ (137,989) (9,026)
----------- --------
Net increase (decrease) in Trust
shares outstanding ........... $ 1,066,776 68,729
=========== ========
</TABLE>
- --------------
** Fund commenced offering class of shares.
56
<PAGE>
Chase Vista Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Southeast Asian Fund
----------------------------------------------------------------
11/01/98 Through Year Ended
4/30/99 10/31/98
---------------------------- ------------------------------
Amount Shares Amount Shares
Class A ---------- ------- ----------- --------
<S> <C> <C> <C> <C>
Shares sold .................... $1,298,726 189,402 $ 1,440,407 213,843
Shares issued in reinvestment of
distributions ................ -- -- 15,760 2,646
Shares redeemed ................ (612,348) (93,833) (3,567,263) (522,912)
---------- ------- ----------- --------
Net increase (decrease) in Trust
shares outstanding ........... $ 686,378 95,569 $(2,111,096) (306,423)
========== ======= =========== ========
<CAPTION>
Southeast Asian Fund
----------------------------------------------------------------
11/01/98 Through Year Ended
4/30/99 10/31/98
---------------------------- ------------------------------
Class B Amount Shares Amount Shares
---------- ------- ----------- --------
<S> <C> <C> <C> <C>
Shares sold .................... $ 352,503 53,220 $ 972,858 138,436
Shares issued in reinvestment of
distributions ................ -- -- 3,461 606
Shares redeemed ................ (344,007) (53,557) (846,273) (134,677)
---------- ------- ----------- --------
Net increase (decrease) in Trust
shares outstanding ........... $ 8,496 (337) $ 130,046 4,365
========== ======= =========== ========
<CAPTION>
Japan Fund
----------------------------------------------------------------
11/01/98 Through Year Ended
4/30/99 10/31/98
---------------------------- ------------------------------
Class A Amount Shares Amount Shares
---------- ------- ----------- --------
<S> <C> <C> <C> <C>
Shares sold .................... $1,288,302 178,833 $ 449,737 55,013
Shares issued in reinvestment of
distributions ................ -- -- 64,699 7,532
Shares redeemed ................ (381,075) (56,635) (2,479,074) (312,499)
---------- ------- ----------- --------
Net increase (decrease) in Trust
shares outstanding ........... $ 907,227 122,198 $(1,964,638) (249,954)
========== ======= =========== ========
<CAPTION>
Japan Fund
----------------------------------------------------------------
11/01/98 Through Year Ended
4/30/99 10/31/98
---------------------------- ------------------------------
Class B Amount Shares Amount Shares
---------- ------- ----------- --------
<S> <C> <C> <C> <C>
Shares sold .................... $ 176,751 24,599 $ 245,921 30,693
Shares issued in reinvestment of
distributions ................ -- -- 48,224 5,653
Shares redeemed ................ (55,664) (7,528) (1,495,990) (175,456)
---------- ------- ----------- --------
Net increase (decrease) in Trust
shares outstanding ........... $ 121,087 17,071 $(1,201,845) (139,110)
========== ======= =========== ========
</TABLE>
57
<PAGE>
Chase Vista Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Latin American Equity Fund
-------------------------------------------------------
11/01/98 Through 12/01/97* Through
4/30/99 10/31/98
------------------------- -------------------------
Amount Shares Amount Shares
Class A ----------- -------- ----------- ---------
<S> <C> <C> <C> <C>
Shares sold .................... $ 509,434 88,524 $10,976,012 1,333,183
Shares issued in reinvestment of
distributions ................ 990 181 21,263 2,684
Shares redeemed ................ (2,586,861) (447,170) (1,326,180) (199,511)
----------- -------- ----------- ---------
Net increase (decrease) in Trust
shares outstanding ........... $(2,076,437) (358,465) $ 9,671,095 1,136,356
=========== ======== =========== =========
<CAPTION>
Latin American Equity Fund
-------------------------------------------------------
11/01/98 Through 03/24/98** Through
4/30/99 10/31/98
------------------------- -------------------------
Class B Amount Shares Amount Shares
----------- -------- ----------- ---------
<S> <C> <C> <C> <C>
Shares sold .................... $ 28,028 5,060 $ 46,011 7,581
Shares issued in reinvestment of
distributions ................ 171 31 61 8
Shares redeemed ................ (2,333) (466) (50) (7)
----------- -------- ----------- ---------
Net increase (decrease) in Trust
shares outstanding ........... $ 25,866 4,625 $ 46,022 7,582
=========== ======== =========== =========
</TABLE>
<TABLE>
<CAPTION>
International Equity Fund
-------------------------------------------------------------
11/01/98 Through Year Ended
4/30/99 10/31/98
---------------------------- ----------------------------
Amount Shares Amount Shares
Class A ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
Shares sold .................. $ 22,430,606 1,801,587 $ 22,214,113 1,760,489
Shares issued in reinvestment
of distributions ........... 646,590 52,061 477,098 41,144
Shares redeemed .............. (23,415,274) (1,868,220) (28,433,278) (2,235,592)
------------ ---------- ------------ ----------
Net increase (decrease) in
Trust shares outstanding ... $ (338,078) (14,572) $ (5,742,067) (433,959)
============ ========== ============ ==========
<CAPTION>
International Equity Fund
-------------------------------------------------------------
11/01/98 Through Year Ended
4/30/99 10/31/98
---------------------------- ----------------------------
Class B Amount Shares Amount Shares
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
Shares sold .................. $ 4,519,331 369,075 $ 7,895,936 635,787
Shares issued in reinvestment
of distributions ........... 292,987 23,956 181,139 15,881
Shares redeemed .............. (4,768,380) (386,562) (8,760,993) (696,779)
------------ ---------- ------------ ----------
Net increase (decrease) in
Trust shares outstanding ... $ 43,938 6,469 $ (683,918) (45,111)
============ ========== ============ ==========
</TABLE>
- --------------
*Fund commenced operations.
**Fund commenced offering class of shares.
58
<PAGE>
Chase Vista Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
6. Open Forward Foreign Currency Contracts -- The following forward foreign
currency contracts were open at April 30, 1999:
<TABLE>
<CAPTION>
Chase Vista European Fund
- ---------------------------------------------------------------------------------
Contract Contract Unrealized
Amount Amount Settlement Gain
Purchased Sold Date (USD)
- -------------------------- ----------------------- ------------ -----------
<S> <C> <C> <C>
325,000 (EUR) $213,471 (USD) 4-May-99 $ --
201,713 (EUR) 213,403 (USD) 4-May-99 68
481,450 (EUR) 509,352 (USD) 4-May-99 648
31,000 (EUR) 49,913 (USD) 4-May-99 78
----
$794
====
</TABLE>
<TABLE>
<CAPTION>
Chase Vista Southeast Asian Fund
- --------------------------------------------------------------------------------
Contract Contract Unrealized
Amount Amount Settlement Gain
Purchased Sold Date (USD)
- -------------------------- ---------------------- ------------ -----------
<S> <C> <C> <C>
103,000 (SGD) $60,588 (USD) 6-May-99 $271
====
</TABLE>
- --------------
EURO--European Currency
SGD--Singapore Dollar
7. Foreign Cash Positions
<TABLE>
<CAPTION>
Chase Vista European Fund
------------------------------------------------------
Market Net Unrealized
Local Cost Value (Loss)
Currency Currency (USD) (USD) (USD)
- --------------------------------- -------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
British Pound ................... 396,996 $ 641,180 $ 639,204 $(1,976)
Greek Drachma ................... 101 -- -- --
Swiss Franc ..................... 323,847 213,237 212,714 (523)
Swedish Krona ................... 164,973 19,649 19,614 (35)
European Currency (EURO) ........ 293,270 310,742 310,266 (476)
---------- ---------- -------
$1,184,808 $1,181,798 $(3,010)
========== ========== =======
</TABLE>
<TABLE>
<CAPTION>
Chase Vista Southeast Asian Fund
-----------------------------------------------------------
Market Net Unrealized
Local Cost Value Gain (Loss)
Currency Currency (USD) (USD) (USD)
- --------------------------- ---------- -------- -------- --------------
<S> <C> <C> <C> <C>
Australian Dollar ......... 1,760 $ 1,143 $ 1,167 $ 24
Hong Kong Dollar .......... 1,618,204 208,813 208,795 (18)
Indonesian Rupiah ......... 315,318 38 39 1
Philippines Peso .......... 2,548,310 (125) (125) --
Singapore Dollar .......... 4,926 66,485 67,018 533
South Korean Won .......... 66,603,130 59,882 59,050 (832)
Thai Baht ................. 2,388,000 64,341 64,343 2
Taiwan Dollar ............. 1,299,316 40,214 39,736 (478)
-------- -------- -----
$440,791 $440,023 $(768)
======== ======== =====
</TABLE>
59
<PAGE>
Chase Vista Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Chase Vista Japan Fund
----------------------------------------------------------
Market Net Unrealized
Local Cost Value (Loss)
Currency Currency (USD) (USD) (USD)
- ---------------------- ---------- -------- -------- ---------------
<S> <C> <C> <C> <C>
Japanese Yen ......... 47,667,530 $401,907 $399,353 $(2,554)
======== ======== =======
</TABLE>
8. Options -- The following is a summary of option activity for the six months
ended April 30, 1999 by CVSEAF:
<TABLE>
<CAPTION>
Shares
Subject to
Contract Premiums
Covered Call Options ---------- --------
<S> <C> <C>
Balance at beginning of period ............... -- --
Options written .............................. 2 $2,516
Options closed ............................... -- --
Options expired .............................. -- --
Options excercised ........................... -- --
-- ------
Options outstanding at end of period ......... 2 $2,516
== ======
</TABLE>
<TABLE>
<CAPTION>
Shares
Subject to
Contract Premiums
Covered Call Options ---------- --------
<S> <C> <C>
Options outstanding at the end of period consist of:
Hang Seng Stock Index Future, Strike Price of
14,200 (HKD), Expires May 28, 1999 ................ 1 $1,419
Hang Seng Stock Index Future, Strike Price of
14,000 (HKD), Expires May 28, 1999 ................ 1 1,097
- ------
2 $2,516
= ======
</TABLE>
9. Concentrations -- At April 30, 1999, substantially all of the Fund's net
assets consist of securities of issuers which are denominated in foreign
currencies. Changes in currency exchange rates will affect the value of and
investment income from such securities.
As of April 30, 1999 CVEF invested approximately 30.9% of its net assets in
issuers in the United Kingdom; CVSEAF invested approximately 22.7% of its net
assets in issuers in Hong Kong; CVLAEF invested approximately 29.1% and 38.8%,
respectively, of its net assets in issuers in Brazil and Mexico. The issuers'
abilities to meet their obligations may be affected by economic or political
developments in the specific region or country.
Substantially all of CVSEAF's CVJF and CVLAEF net assets consist of securities
which are subject to greater price volatility, limited capitalization and
liquidity, and higher rates of inflation than securities of companies based in
the United States. In addition, certain securities may be subject to substantial
governmental involvement in the economy and social, economic and political
uncertainty.
60
<PAGE>
Chase Vista Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
10. Retirement Plans -- The Funds have adopted an unfunded noncontributory
defined benefit pension plan covering all independent trustees of the Funds who
will have served as independent trustees for at least five years at the time of
retirement. Benefits under this plan are based on compensation and years of
service. Pension expenses for the 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 liabilities, respectively, in the Statement
of Assets and Liabilities were as follows:
<TABLE>
<CAPTION>
Pension Accrued Pension
Expenses Liability
Fund: -------- ---------------
<S> <C> <C>
CVEF ........... $435 $1,501
CVSEAF ......... 38 615
CVJF ........... 23 367
CVLAEF ......... 56 229
CVIEF .......... 123 1,189
</TABLE>
61
<PAGE>
Chase Vista Funds
Financial Highlights Throughout Each Period Indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista European Fund
----------------------------------------------
Class A
----------------------------------------------
11/01/98 Year Ended 11/02/95*
Through --------------------- Through
4/30/99 10/31/98 10/31/97 10/31/96
-------- -------- --------- ---------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ..................... $ 14.47 $ 14.10 $ 11.99 $10.00
------- ------- ------- ------
Income from Investment Operations:
Net Investment Income .................................. (0.02) 0.15 0.05 0.15
Net Gains or Losses in Securities (both realized
and unrealized) ....................................... 1.91 2.16 3.01 1.93
------- ------- ------- ------
Total from Investment Operations ....................... 1.89 2.31 3.06 2.08
------- ------- ------- ------
Distributions to Shareholders from:
Dividends from Net Investment Income .................... 0.09 0.22 0.10 0.09
Distributions from Capital Gains ........................ 0.11 1.72 0.85 --
------- ------- ------- ------
Total Dividends and Distributions ........................ 0.20 1.94 0.95 0.09
------- ------- ------- -------
Net Asset Value, End of Period ........................... $ 16.16 $ 14.47 $ 14.10 $11.99
======= ======= ======= ======
Total Return (1) ......................................... 13.08% 18.71% 28.19% 20.78%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ................. $46,026 $33,743 $12,965 $6,358
Ratios to Average Net Assets #:
Expenses ................................................ 1.74% 1.74% 1.75% 1.75%
Net Investment Income ................................... (0.69%) (0.07%) 0.32% 1.44%
Expenses Without Waivers and Assumption of Expenses ..... 2.09% 2.38% 2.84% 3.49%
Net Investment Income Without Waivers and Assumption
of Expenses ............................................ (1.04%) (0.71%) (0.77%) (0.30%)
Portfolio Turnover Rate .................................. 79% 183% 170% 186%
<CAPTION>
Vista European Fund
-------------------------------------------------------------
Class B Class C
------------------------------------------------ ----------
11/01/98 Year Ended 11/03/95** 11/02/98**
Through --------------------- Through Through
4/30/99 10/31/98 10/31/97 10/31/96 4/30/99
-------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ..................... $ 14.24 $13.93 $11.93 $ 9.97 $14.24
------- ------ ------ ------ ------
Income from Investment Operations:
Net Investment Income .................................. (0.10) 0.08 0.04 0.07 0.04
Net Gains or Losses in Securities (both realized
and unrealized) ....................................... 1.89 2.10 2.89 1.96 1.75
------- ------ ------ ------ -----
Total from Investment Operations ....................... 1.79 2.18 2.93 2.03 1.79
------- ------ ------ ------ ------
Distributions to Shareholders from:
Dividends from Net Investment Income .................... 0.03 0.15 0.08 0.07 0.03
Distributions from Capital Gains ........................ 0.11 1.72 0.85 -- 0.11
------- ------ ------ ------ ------
Total Dividends and Distributions ........................ 0.14 1.87 0.93 0.07 0.14
------- ------ ------ ------ ------
Net Asset Value, End of Period ........................... $ 15.89 $14.24 $13.93 $11.93 $15.89
======= ====== ====== ====== ======
Total Return (1) ......................................... 12.60% 17.89% 27.25% 20.35% 12.60%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ................. $11,197 $9,457 $2,218 $ 190 $1,092
Ratios to Average Net Assets #:
Expenses ................................................ 2.50% 2.50% 2.51% 2.47% 2.36%
Net Investment Income ................................... (1.30%) (0.75%) (0.30%) 0.80% 0.32%
Expenses Without Waivers and Assumption of Expenses ..... 2.85% 2.91% 3.58% 3.83% 2.65%
Net Investment Income Without Waivers and Assumption
of Expenses ............................................ (1.66%) (1.16%) (1.37%) (0.56%) 0.03%
Portfolio Turnover Rate .................................. 79% 183% 170% 186% 79%
</TABLE>
- -------
* Commencement of operations.
** Commencement of offering of class of shares.
(1) Total return figures do not include the effect of any sales load.
# Short periods have been annualized.
See notes to financial statements.
62
<PAGE>
Chase Vista Funds
Financial Highlights Throughout Each Period Indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
See notes to financial statements.
Southeast Asian Fund
--------------------------------------------------
Class A
--------------------------------------------------
11/01/98 Year Ended 11/02/95*
Through ---------------------- Through
4/30/99 10/31/98 10/31/97 10/31/96
-------- -------- -------- ---------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ................................... $ 6.09 $ 8.07 $ 11.97 $10.00
------ ------- ------- ------
Income from Investment Operations:
Net Investment Income ................................................ (0.01) 0.06 0.07 (0.01)
Net Gains or Losses in Securities (both realized and unrealized) ..... 2.37 (1.99) (3.31) 1.98
------ ------- ------- ------
Total from Investment Operations ..................................... 2.36 (1.93) (3.24) 1.97
------ ------- ------- ------
Distributions to Shareholders from:
Dividends from Net Investment Income .................................. -- -- -- --
Distributions from Capital Gains ...................................... -- -- 0.64 --
Tax Return of Capital ................................................. -- 0.05 0.02 --
------ ------- ------- ------
Total Dividends and Distributions ...................................... -- 0.05 0.66 --
------ ------- ------- ------
Net Asset Value, End of Period ......................................... $ 8.45 $ 6.09 $ 8.07 $11.97
====== ======= ======= ======
Total Return (1) ....................................................... 38.75% (23.85%) (28.86%) 19.70%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ............................... $5,096 $ 3,089 $ 6,566 $8,451
Ratios to Average Net Assets #:
Expenses .............................................................. 1.73% 1.76% 1.75% 1.74%
Net Investment Income ................................................. (0.06%) 0.82% 0.42% (0.12%)
Expenses Without Waivers and Assumption of Expenses ................... 6.14% 4.01% 2.84% 3.26%
Net Investment Income Without Waivers and Assumption of Expenses ...... (4.47%) (1.43%) (0.67%) (1.64%)
Portfolio Turnover Rate ................................................ 176% 316% 234% 149%
<CAPTION>
Southeast Asian Fund
--------------------------------------------------
Class B
--------------------------------------------------
11/01/98 Year Ended 11/03/95**
Through ---------------------- Through
4/30/99 10/31/98 10/31/97 10/31/96
-------- -------- -------- ----------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ................................... $ 5.98 $ 7.95 $ 11.89 $10.01
------ ------- ------- ------
Income from Investment Operations:
Net Investment Income ................................................ (0.03) (0.01) 0.03 (0.06)
Net Gains or Losses in Securities (both realized and unrealized) ..... 2.32 (1.93) (3.32) 1.94
------ ------- ------- ------
Total from Investment Operations ..................................... 2.29 (1.94) (3.29) 1.88
------ ------- ------- ------
Distributions to Shareholders from:
Dividends from Net Investment Income .................................. -- -- -- --
Distributions from Capital Gains ...................................... -- -- 0.64 --
Tax Return of Capital ................................................. -- 0.03 0.01 --
------ ------- ------- ------
Total Dividends and Distributions ...................................... -- 0.03 0.65 --
------ ------- ------- ------
Net Asset Value, End of Period ......................................... $ 8.27 $ 5.98 $ 7.95 $11.89
====== ======= ======= ======
Total Return (1) ....................................................... 38.29% (24.45%) (29.48) 18.78%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ............................... $1,126 $ 816 $ 1,051 $1,222
Ratios to Average Net Assets #:
Expenses .............................................................. 2.47% 2.51% 2.50% 2.52%
Net Investment Income ................................................. (0.76%) (0.16%) (0.23%) (0.90%)
Expenses Without Waivers and Assumption of Expenses ................... 6.89% 4.77% 3.60% 3.70%
Net Investment Income Without Waivers and Assumption of Expenses ...... (5.18%) (2.42%) (1.33%) (2.08%)
Portfolio Turnover Rate ................................................ 176% 316% 234% 149%
</TABLE>
- -------
* Commencement of operations.
** Commencement of offering of class of shares.
(1) Total return figures do not include the effect of any sales load.
# Short periods have been annualized.
See notes to financial statements.
63
<PAGE>
Chase Vista Funds
Financial Highlights Throughout Each Period Indicated (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Japan Fund
------------------------------------------------------------
Class A Class B
------------------------------------------------ --------
11/01/98 Year Ended 11/02/95* 11/01/98
Through --------------------- Through Through
4/30/99 10/31/98 10/31/97 10/31/96 4/30/99
-------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ........ $ 6.41 $ 9.52 $ 9.42 $10.00 $ 6.32
------ ------- ------ ------ ------
Income from Investment Operations:
Net Investment Income ..................... 0.08 0.27 0.08 (0.08) 0.24
Net Gains or Losses in Securities
(both realized and unrealized) ........... 1.29 (2.91) 0.24 (0.50) 1.09
------ ------- ------ ------ ------
Total from Investment Operations .......... 1.37 (2.64) 0.32 (0.58) 1.33
------ ------- ------ ------ ------
Distributions to Shareholders from:
Dividends from Net Investment Income -- 0.26 0.22 -- --
Distributions from Capital Gains ........... -- -- -- -- --
Tax return of Capital ...................... -- 0.21 -- -- --
------ ------- ------ ------ ------
Total Dividends and Distributions ........... -- 0.47 0.22 -- --
------ ------- ------ ------ ------
Net Asset Value, End of Period .............. $ 7.78 $ 6.41 $ 9.52 $ 9.42 $ 7.65
====== ======= ====== ====== ======
Total Return (1) ............................ 21.37% (28.98%) 3.49% (5.80%) 21.04%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) $3,100 $ 1,770 $5,008 $4,781 $ 604
Ratios to Average Net Assets #:
Expenses ................................... 1.73% 1.76% 1.75% 1.75% 2.48%
Net Investment Income ...................... (0.71%) (0.56%) (0.30%) (0.91%) (1.64%)
Expenses Without Waivers and
Assumption of Expenses .................... 6.77% 3.79% 2.89% 3.60% 7.52%
Net Investment Income Without
Waivers and Assumption of Expenses (5.75%) (2.59%) (1.44%) (2.76%) (6.68%)
Portfolio Turnover Rate ..................... 91% 212% 217% 121% 91%
<CAPTION>
Japan Fund
-----------------------------------
Class B
-----------------------------------
Year Ended 11/03/95**
--------------------- Through
10/31/98 10/31/97 10/31/96
---------- -------- ----------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ........ $ 9.42 $ 9.35 $10.00
------- ------ ------
Income from Investment Operations:
Net Investment Income ..................... 0.23 (0.05) (0.02)
Net Gains or Losses in Securities
(both realized and unrealized) ........... (2.90) 0.30 (0.63)
------ ------ ------
Total from Investment Operations .......... (2.67) 0.25 (0.65)
------ ------ ------
Distributions to Shareholders from:
Dividends from Net Investment Income 0.22 0.18 --
Distributions from Capital Gains ........... -- -- --
Tax return of Capital ...................... 0.21 -- --
------ ------ ------
Total Dividends and Distributions ........... 0.43 0.18 --
------ ------ ------
Net Asset Value, End of Period .............. $ 6.32 $ 9.42 $ 9.35
====== ====== ======
Total Return (1) ............................ (29.53%) 2.72% (6.50%)
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) $ 391 $1,893 $ 162
Ratios to Average Net Assets #:
Expenses ................................... 2.51% 2.51% 2.52%
Net Investment Income ...................... (0.97%) (5.73%) (0.40%)
Expenses Without Waivers and
Assumption of Expenses .................... 4.52% 3.66% 4.00%
Net Investment Income Without
Waivers and Assumption of Expenses (2.98%) (6.88%) (1.88%)
Portfolio Turnover Rate ..................... 212% 217% 121%
<CAPTION>
Latin American Equity Fund
-----------------------------------------------
Class A Class B
--------------------- ----------------------
11/01/98 12/01/97* 11/01/98 03/24/98**
Through Through Through Through
4/30/99 10/31/98 4/30/99 10/31/98
-------- --------- -------- ----------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ........ $ 5.55 $ 10.00 $ 5.53 $ 10.17
------ ------- ------ -------
Income from Investment Operations:
Net Investment Income ..................... 0.12 0.18 0.05 0.14
Net Gains or Losses in Securities
(both realized and unrealized) ........... 1.22 (4.47) 1.27 (4.63)
------ ------- ------ -------
Total from Investment Operations .......... 1.34 (4.29) 1.32 (4.49)
------ ------- ------ -------
Distributions to Shareholders from:
Dividends from Net Investment Income 0.03 0.14 0.02 0.13
Distributions from Capital Gains ........... -- -- -- --
Tax return of Capital ...................... -- 0.02 -- 0.02
------ ------- ------ -------
Total Dividends and Distributions ........... 0.03 0.16 0.02 0.15
------ ------- ------ -------
Net Asset Value, End of Period .............. $ 6.86 $ 5.55 $ 6.83 $ 5.53
====== ======= ====== =======
Total Return (1) ............................ 24.35% (43.34%) 23.96% (44.59%)
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) $5,334 $ 6,302 $ 83 $ 42
Ratios to Average Net Assets #:
Expenses ................................... 1.74% 1.75% 2.44% 2.53%
Net Investment Income ...................... 3.29% 2.78% 2.47% (0.21%)
Expenses Without Waivers and
Assumption of Expenses .................... 4.46% 3.80% 4.91% 4.35%
Net Investment Income Without
Waivers and Assumption of Expenses 0.57% 0.73% -- (2.03%)
Portfolio Turnover Rate ..................... 40% 90% 40% 90%
</TABLE>
- -------
* Commencement of operations.
** Commencement of offering of class of shares.
(1) Total return figures do not include the effect of any sales load.
# Short periods have been annualized.
See notes to financial statements.
64
<PAGE>
Chase Vista Funds
Financial Highlights Throughout Each Period Indicated (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Equity Fund
-------------------------------------------------------------------------
Class A
-------------------------------------------------------------------------
11/01/98 Year Ended
Through ------------------------------------------------------------
4/30/99 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ......... $ 12.08 $ 12.11 $ 12.38 $ 12.02 $ 12.31 $ 11.82
------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net Investment Income ...................... (0.21) (0.09) (0.05)@ 0.05 0.04 (0.02)
Net Gains or Losses in Securities
(both realized and unrealized) ............ 1.51 0.43 0.33 0.37 (0.19) 0.56
------- ------- ------- ------- ------- -------
Total from Investment Operations ........... 1.30 0.34 0.28 0.42 (0.15) 0.54
------- ------- ------- ------- ------- -------
Distributions to Shareholders from:
Dividends from Net Investment Income ........ -- 0.07 0.03 0.06 -- --
Distributions from Capital Gains ............ 0.46 0.30 0.52 -- 0.14 0.05
------- ------- ------- ------- ------- -------
Total Dividends and Distributions .......... 0.46 0.37 0.55 0.06 0.14 0.05
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period ............... $ 12.92 $ 12.08 $ 12.11 $ 12.38 $ 12.02 $ 12.31
======= ======= ======= ======= ======= =======
Total Return (1) 11.74% 2.96% 2.27% 3.53% (1.19%) 4.61%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ..... $19,031 $17,969 $23,267 $24,904 $26,287 $37,926
Ratios to Average Net Assets #:
Expenses .................................... 1.99% 2.00% 2.01% 2.00% 2.01% 2.00%
Net Investment Income ....................... (0.69%) (0.47%) (0.36%) (0.03%) (0.10%) (0.27%)
Expenses Without Waivers and Assumption
of Expenses ................................ 3.37% 3.39% 2.08% 2.86% 2.86% 2.86%
Net Investment Income Without Waivers
and Assumption of Expenses ................. (2.07%) (1.86%) (0.43%) (0.89%) (0.95%) (1.13%)
<CAPTION>
International Equity Fund
--------------------------------------------------------------------------
Class B
--------------------------------------------------------------------------
11/04/93**
11/01/98 Year Ended Through
Through ----------------------------------------------- ----------
4/30/99 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ......... $11.92 $11.94 $12.24 $11.89 $12.23 $11.69
------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net Investment Income ...................... (0.21) (0.13) (0.11)@ 0.01 (0.02) (0.05)
Net Gains or Losses in Securities
(both realized and unrealized) ............ 1.10 0.42 0.33 0.35 (0.18) 0.64
------ ------ ------ ------ ------ ------
Total from Investment Operations ........... 0.89 0.29 0.22 0.36 (0.20) 0.59
------ ------ ------ ------ ------ ------
Distributions to Shareholders from:
Dividends from Net Investment Income ........ -- 0.01 -- -- -- --
Distributions from Capital Gains ............ 0.10 0.30 0.52 0.01 0.14 0.05
------ ------ ------ ------ ------ ------
Total Dividends and Distributions .......... 0.10 0.31 0.52 0.01 0.14 0.05
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period ............... $12.71 $11.92 $11.94 $12.24 $11.89 $12.23
====== ====== ====== ====== ====== ======
Total Return (1) 11.48% 2.56% 1.74% 3.03% (1.61%) 5.09%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ..... $8,009 $7,433 $7,989 $7,819 $6,759 $7,182
Ratios to Average Net Assets #:
Expenses .................................... 2.49% 2.50% 2.51% 2.50% 2.50% 2.50%
Net Investment Income ....................... (1.19%) (0.94%) (0.88%) (0.43%) (0.53%) (0.94%)
Expenses Without Waivers and Assumption
of Expenses ................................ 3.88% 3.90% 2.61% 3.36% 3.36% 3.36%
Net Investment Income Without Waivers
and Assumption of Expenses ................. (2.57%) (2.34%) (0.98%) (1.29%) (1.39%) (1.80%)
</TABLE>
- -------
** Commencement of offering of class of shares.
(1) Total return figures do not include the effect of any sales load.
# Short periods have been annualized.
@ Calculated using average shares outstanding.
See notes to financial statements.
65
<PAGE>
International Equity Portfolio
Portfolio of Investments April 30, 1999 (unaudited)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ------------------------------------------------------------
<S> <C> <C>
Long Term Investments -- 88.0%
- ------------------------------------------------------------
Common Stock -- 87.7%
---------------------
Australia -- 0.4%
Diversified -- 0.2%
13,100 Lang Corp., LTD $ 43,017
Food/Beverage Products -- 0.1%
12,000 Foster's Brewing Group LTD 35,020
Multi-Media -- 0.1%
5,300 Publishing & Broadcasting LTD 35,640
-----------
Total Australia 113,677
-----------
Brazil -- 2.7%
Telecommunications -- 1.1%
Telecomunicacoes Brasileiras SA
3,400 Sponsored ADR, Preferred Block 310,038
3,400 Telebras, ADR* 266
-----------
310,304
-----------
Utilities -- 1.6%
42,400 Centrais Electricas Brasilieros PN 421,706
500 Centrais Geradoras do Sul do Brazil
SA, ADR* 2,034
-----------
423,740
-----------
Total Brazil 734,044
-----------
Finland -- 2.5%
Telecommunications -- 2.5%
5,130 Nokia Oyj 396,584
13,574 Sonera Group Oyj 268,443
-----------
Total Finland 665,027
-----------
France -- 8.1%
Banking -- 1.5%
3,760 Credit Commercial de France 397,639
Computer Software -- 2.1%
3,708 Cap Gemini Sogeti SA 567,426
Insurance -- 1.0%
11,012 CNP Assurances* 276,004
Manufacturing -- 0.8%
1,206 Compagnie de Saint Gobain 207,253
</TABLE>
See notes to financial statements.
66
<PAGE>
International Equity Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ---------------------------------------------------------------
<S> <C> <C>
Long Term Investments -- (continued)
- ---------------------------------------------------------------
Oil & Gas -- 1.2%
2,350 Total Cie Francaise Petroles, Ser. B, $ 322,087
Retailing -- 1.5%
2,487 Pinault-Printemps-Redoute SA 412,930
-----------
Total France 2,183,339
-----------
Germany -- 8.8%
Automotive -- 2.2%
5,840 DaimlerChrysler AG 577,156
Chemicals -- 2.5%
6,800 Degussa - Huels AG* 297,002
8,150 Hoechst AG 386,564
-----------
683,566
-----------
Financial Services -- 0.1%
400 Consors Discount Broker AG* 38,283
Food/Beverage Products -- 2.7%
21,447 Kamps AG 737,141
Insurance -- 1.3%
1,090 Allianz AG 347,548
-----------
Total Germany 2,383,694
-----------
Greece -- 1.0%
Telecommunications -- 1.0%
9,797 STET Hellas Telecommunications SA,
ADR* 264,519
-----------
Ireland -- 2.5%
Airlines -- 0.8%
25,000 Ryanair Holdings PLC* 219,442
Paper/Forest Products -- 0.2%
18,044 Jefferson Smurfit Group PLC 48,251
Real Estate -- 0.5%
20,733 Green Property PLC 129,086
Telecommunications -- 1.0%
5,824 Esat Telecom Group PLC, ADR* 284,648
-----------
Total Ireland 681,427
-----------
Italy -- 4.7%
Computers/Computer Hardware -- 0.1%
6,607 Olivetti Group SPA* 22,974
</TABLE>
See notes to financial statements.
67
<PAGE>
International Equity Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -----------------------------------------------------------------
<S> <C> <C>
Long Term Investments -- (continued)
- -----------------------------------------------------------------
Food/Beverage Products -- 0.6%
61,400 Cremonini SPA* $ 160,386
Insurance -- 1.3%
29,000 Alleanza Assicurazioni 347,265
Oil & Gas -- 0.7%
30,000 Ente Nazionale Idrocarburi SPA 197,402
Printing & Publishing -- 0.4%
58,385 Poligrafici Editoriale SPA 117,377
Telecommunications -- 1.6%
41,400 Telecom Italia SPA 438,482
-----------
Total Italy 1,283,886
-----------
Japan -- 13.9%
Automotive -- 0.2%
16,000 Nissan Motor Co, LTD 61,435
Broadcasting -- 0.5%
25 Fuji Television Network, Inc. 136,234
Business Services -- 0.7%
2,000 Secom Co., LTD 181,087
Chemicals -- 1.7%
19,000 Asahi Chemical Industry Co., LTD 110,706
17,000 Kaneka Corp. 137,534
26,000 Nippon Sanso Corp. 91,549
4,000 Shin-Etsu Chemical Co., LTD 127,431
-----------
467,220
-----------
Consumer Products -- 1.1%
9,000 KAO Corp. 228,622
1,800 Uni-Charm Corp. 78,924
-----------
307,546
-----------
Distribution -- 0.4%
15,000 Mitsui & Co. 110,035
Electronics/Electrical Equipment -- 2.9%
5,000 Aiwa Co., LTD 142,522
20,000 Fujikura LTD 104,292
400 Keyence Corp. 60,161
3,000 Murata Manufacturing Co., LTD 173,793
1,000 Rohm Company 120,724
</TABLE>
See notes to financial statements.
68
<PAGE>
International Equity Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ----------------------------------------------------------
<S> <C> <C>
Long Term Investments -- (continued)
- ----------------------------------------------------------
600 SMC Corp. $ 55,382
200 Sony Corp. 18,696
17,000 Toshiba Corp. 114,017
-----------
789,587
-----------
Entertainment/Leisure -- 0.6%
1,600 Nintendo Company LTD 150,771
Food/Beverage Products -- 0.2%
2,000 Nissin Food Products, Co., LTD 43,930
Home Building/Construction -- 0.5%
12,000 Sekisui House, LTD 132,897
Insurance -- 0.4%
10,000 Tokio Marine & Fire Insurance Co. 116,616
Machinery & Engineering Equipment -- 0.5%
2,000 Fuji Machine Manufacturing Co., LTD 71,429
11,000 Komatsu LTD 65,568
-----------
136,997
-----------
Pharmaceuticals -- 1.0%
9,000 Fujisawa Pharmaceutical Co., LTD 147,887
3,000 Takeda Chemical Industries 125,755
-----------
273,642
-----------
Retailing -- 0.7%
500 Aoyama Trading Co., LTD 14,043
3,200 Credit Saison Co., LTD 65,459
2,000 Ito-Yokado Co. LTD 122,904
-----------
202,406
-----------
Shipping/Transportation -- 0.3%
13 East Japan Railway Co. 76,836
Telecommunications -- 1.9%
2,000 Matsushita Communication Industries 143,696
17 NTT Data Corp. 134,683
4 NTT Mobile Communication
Network, Inc. 234,742
-----------
513,121
-----------
Textiles -- 0.3%
6,000 Kuraray Co., LTD 68,410
-----------
Total Japan 3,768,770
-----------
</TABLE>
See notes to financial statements.
69
<PAGE>
International Equity Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -------------------------------------------------------------
<S> <C> <C>
Long Term Investments -- (continued)
- -------------------------------------------------------------
Malta -- 0.7%
Telecommunications -- 0.7%
13,528 Maltacom PLC, GDR, Reg. S* $ 199,538
-----------
Mexico -- 0.8%
Diversified -- 0.6%
40,000 ALFA, SA de CV, Class A 159,039
Retailing -- 0.2%
95,000 Grupo Elektra, SA de CV, L Shares 66,807
-----------
Total Mexico 225,846
-----------
Netherlands -- 6.0%
Banking -- 1.6%
7,100 ING Groep NV 437,752
Food/Beverage Products -- 0.6%
7,284 Laurus NV 156,749
Media/Entertainment -- 1.1%
6,000 United Pan-Europe Communications
NV* 310,602
Printing & Publishing -- 1.9%
12,500 Verenigde Nederlandse
Uitgeversbedrijvan Verenigd Bezit 506,302
Retailing -- 0.4%
2,868 Koninklijke Ahold NV 106,612
Telecommunications -- 0.4%
1,172 Equant NV* 106,469
-----------
Total Netherlands 1,624,486
-----------
Portugal -- 2.1%
Banking -- 1.2%
11,600 Banco Comercial Portugues, SA 327,422
Construction -- 0.4%
2,600 Brisa-Auto Estradas de Portugal, SA 110,260
Telecommunications -- 0.5%
1,085 Telecel-Comunicacaoes Pessoais, SA* 145,151
-----------
Total Portugal 582,833
-----------
Singapore -- 0.1%
Real Estate -- 0.1%
12,000 DBS Land, LTD 22,217
-----------
</TABLE>
See notes to financial statements.
70
<PAGE>
International Equity Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -----------------------------------------------------------
<S> <C> <C>
Long Term Investments -- (continued)
- -----------------------------------------------------------
Spain -- 4.0%
Banking -- 1.6%
18,400 Argentaria, Caja Postal y Banco
Hipotecario de Espana, SA $ 433,156
Business Services -- 0.7%
16,000 Prosegur, CIA de Seguridad SA,
Registered 185,283
Construction -- 0.4%
1,600 Fomento de Construcciones y
Contratas SA 97,887
Steel -- 0.3%
3,100 Acerinos SA 93,664
Telecommunications -- 1.0%
5,659 Telephonica de Espana 265,420
-----------
Total Spain 1,075,410
-----------
Sweden -- 2.1%
Banking -- 1.0%
7,300 Svenska Handelsbanken A Shares 273,941
Metals/Mining -- 1.1%
6,900 Assa Abloy AB 301,539
-----------
Total Sweden 575,480
-----------
Switzerland -- 6.0%
Banking -- 2.4%
1,890 UBS AG 642,528
Consumer Products -- 0.6%
84 Compagnie Financiere Richemont AG 143,005
Engineering Services -- 0.7%
139 ABB AG 202,976
Insurance -- 1.1%
460 Zurich Allied AG 296,764
Pharmaceuticals -- 1.2%
28 Roche Holding AG 329,671
-----------
Total Switzerland 1,614,944
-----------
</TABLE>
See notes to financial statements.
71
<PAGE>
International Equity Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -----------------------------------------------------------------
<S> <C> <C>
Long Term Investments -- (continued)
- -----------------------------------------------------------------
Thailand -- 0.2%
Oil & Gas -- 0.1%
2,100 PTT Exploration and Production
Public Co., LTD (Foreign) $ 19,358
Utilities -- 0.1%
10,700 Electricity Generating Public Co.,
LTD* 23,794
-----------
Total Thailand 43,152
-----------
United Kingdom -- 21.1%
Banking -- 3.8%
17,300 National Westminster Bank 417,193
25,400 Royal Bank of Scotland Group PLC 599,841
-----------
1,017,034
-----------
Business Services -- 1.0%
32,408 Jarvis, PLC 270,949
Computers/Computer Services -- 0.8%
22,150 SEMA Group PLC 214,624
Construction -- 0.6%
13,050 Berkeley Group PLC 155,775
Diversified -- 1.7%
13,509 Granada Group PLC 284,425
18,400 Securicor PLC 173,231
-----------
457,656
-----------
Electronics/Electrical Equipment -- 1.2%
32,300 General Electric Company PLC 342,631
Financial Services -- 2.2%
13,400 Barclays PLC 426,109
56,000 Legal & General Group PLC 163,055
-----------
589,164
-----------
Food/Beverage Products -- 1.2%
29,200 Diageo PLC 337,500
Multi-Media -- 2.0%
11,000 Pearson PLC 234,257
22,700 Reuters Group PLC 307,898
-----------
542,155
-----------
</TABLE>
See notes to financial statements.
72
<PAGE>
International Equity Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- -----------------------------------------------------------
<S> <C> <C>
Long Term Investments -- (continued)
- -----------------------------------------------------------
Oil & Gas -- 2.7%
39,273 British Petroleum Co., PLC $ 745,893
Pharmaceuticals -- 1.0%
19,800 SmithKline Beecham PLC 262,184
Steel -- 0.5%
61,000 British Steel PLC 145,186
Telecommunications -- 2.4%
1,815 Energis PLC* 49,596
32,849 Vodafone Group PLC 605,893
-----------
655,489
-----------
Total United Kingdom 5,736,240
-----------
Total Common Stock 23,778,529
-----------
(Cost $21,000,650)
Convertible Preferred Stock -- 0.1%
-----------------------------------
Malaysia -- 0.1%
Construction -- 0.1%
60,000 Sunway Building Technology, Bhd,
3.0% RULS, (Redeemable
Unsecured Loan Stock) 13,579
-----------
(Cost $24,077)
Rights -- 0.0%
--------------
Spain -- 0.0%
Telecommunications -- 0.0%
5,659 Telefonica SA 5,326
-----------
(Cost $ 0)
Warrants -- 0.2%
----------------
Germany -- 0.2%
Insurance -- 0.0%
56 Muenchener Rueckversicherungs-
Gesellschaft AG Exp 06/03/02 1,925
Utilities -- 0.2%
6,000 German Utilities Basket, Expires
11/04/00 49,113
-----------
Total Germany 51,038
-----------
</TABLE>
See notes to financial statements.
73
<PAGE>
International Equity Portfolio
Portfolio of Investments April 30, 1999 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Issuer Value (USD)
- ---------------------------------------------------------
<S> <C> <C>
Long Term Investments -- (continued)
- ---------------------------------------------------------
Hong Kong -- 0.0%
Diversified -- 0.0%
100 Wharf Holdings, Expires 12/31/99 $ 51
-----------
Total Warrants 51,089
-----------
(Cost $132,204)
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
(Local
Currency)
<S> <C> <C>
Corporate Notes & Bonds -- 0.0%
-------------------------------
Germany -- 0.0%
Automotive -- 0.0%
$8,800 DaimlerChrysler AG, 5.75%, 06/14/02 7,655
(Cost $6,155)
=============================================================
Total Investments -- 88.0% $23,856,178
(Cost $21,163,089)
=============================================================
</TABLE>
Index
* -- Non-income producing security.
ADR -- American Depositary Receipt.
GDR -- Global Depositary Receipt.
See notes to financial statements.
74
<PAGE>
International Equity Portfolio
Statement of Assets and Liabilities April 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment securities, at value (Note 1) .......... $23,856,178
Cash .............................................. 1,468,182
Foreign cash (Cost $1,772,927) .................... 1,767,689
Segregated Cash -- Futures Contracts .............. 399,518
Receivables:
Variation margin on futures contracts ............ 114,430
Open forward currency contracts .................. 15,817
Investment securities sold ....................... 610,835
Interest and dividends ........................... 84,657
Other assets ...................................... 188
-----------
Total Assets ................................... 28,317,494
-----------
LIABILITIES:
Payables:
Investment securities purchased .................. 947,923
Open forward currency contracts .................. 140,479
Accrued liabilities: (Note 2)
Custodian ........................................ 9,800
Other ............................................ 103,703
-----------
Total Liabilities .............................. 1,201,905
-----------
NET ASSETS APPLICABLE TO INVESTORS'
BENEFICIAL INTERESTS ........................... $27,115,589
===========
Cost of Investments ............................... $21,163,089
===========
</TABLE>
See notes to financial statements.
75
<PAGE>
International Equity Portfolio
Statement of Operations For the six months ended April 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividend ............................................... $ 155,230
Interest ............................................... 41,384
Foreign taxes withheld ................................. (24,769)
----------
Total investment income ............................... 171,845
----------
EXPENSES: (Note 2)
Investment Advisory fees ............................... 131,896
Administration fees .................................... 6,595
Custodian fees ......................................... 19,784
Professional fees ...................................... 34,959
Trustees fees .......................................... 264
Other .................................................. 44,124
----------
Total expenses ....................................... 237,622
----------
Less amounts waived .................................... 138,491
----------
Net Expenses .......................................... 99,131
----------
Net investment income ................................ 72,714
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on:
Investments ........................................... 1,381,093
Futures contracts ..................................... 33,989
Foreign currency transactions ......................... 15,991
Change in net unrealized appreciation/depreciation on:
Investments .......................................... 1,906,351
Futures contracts .................................... 166,307
Foreign currency contracts and transactions .......... (384,255)
----------
Net realized and unrealized gain ....................... 3,119,476
----------
Net increase in net assets from operations ............. $3,192,190
==========
</TABLE>
See notes to financial statements.
76
<PAGE>
International Equity Portfolio
Statement of Changes in Net Assets For the periods indicated (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
11/01/98 Year
Through Ended
4/30/99 10/31/98
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ........................... $ 72,714 $ 204,024
Net realized gain on investments, futures
and foreign currency transactions ............. 1,431,073 1,109,481
Change in net unrealized appreciation on
investments and foreign currency
transactions .................................. 1,688,403 434,541
----------- -----------
Increase in net assets from operations .......... 3,192,190 1,748,046
----------- -----------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS:
Contributions ................................... 26,957,473 30,176,381
Withdrawals ..................................... (28,586,631) (37,783,446)
----------- -----------
Net (decrease) from transactions in
investors' beneficial interests ............... (1,629,158) (7,607,065)
----------- -----------
Net Increase (decrease) in net assets ........... 1,563,032 (5,859,019)
NET ASSETS:
Beginning of period ............................. 25,552,557 31,411,576
----------- -----------
End of period ................................... $27,115,589 $25,552,557
=========== ===========
</TABLE>
See notes to financial statements.
77
<PAGE>
International Equity Portfolio
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies -- International Equity
Portfolio (the "Portfolio") ("IEP") is separately registered under the
Investment Company Act of 1940, as amended, as a non-diversified, open end
management investment company organized as a trust under the Laws of the State
of New York. The declaration of trust permits the Trustees to issue beneficial
interests in the Portfolio.
The following is a summary of significant accounting policies followed by
the Portfolio:
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
Investments in international markets may involve certain considerations and
risks not typically associated with investments in the United States.
Future economic and political developments in foreign countries could
adversely affect the liquidity or value, or both, of such securities in
which the Portfolio is invested.
A. Valuation of Investments -- Equity securities, purchased options and
futures contracts are valued at the last sale price on the exchange on
which they are primarily traded, including the NASDAQ National Market.
Securities for which sale prices are not available and other
over-the-counter securities are valued at the last quoted bid price. Bonds
and other fixed income securities (other than short-term obligations),
including listed issues, are valued on the basis of valuations supplied by
pricing services or by matrix pricing systems of a major dealer in bonds.
Short-term debt securities with 61 days or more to maturity at time of
purchase are valued, through the 61st day prior to maturity, at market
value based on quotations obtained from market makers or other appropriate
sources; thereafter, the value on the 61st day is amortized on a
straight-line basis over the remaining number of days to maturity.
Short-term investments with 60 days or less to maturity at time of purchase
are valued at amortized cost, which approximates market. Portfolio
securities for which there are no such quotations or valuations are valued
at fair value as determined in good faith by or at the direction of the
Trustees.
B. Repurchase Agreements -- It is the Portfolio's 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
Portfolio may be delayed or limited.
C. Forward Foreign Currency Exchange Contracts -- The Portfolio may enter
into forward foreign currency contracts (obligations to purchase or sell
foreign currency in the future on a date and price fixed at the time the
contracts are entered into) to hedge the Portfolio against fluctuations in
the value of its assets or liabilities due to change in the value of
foreign currencies. Each day the forward contract is open, changes in the
value of the contract are recognized as unrealized gains or losses by
"marking to market". When the forward contract is closed, or the delivery
of the currency is made or taken, the Fund records a realized gain or loss
equal to the difference between the proceeds from (or cost of) the closing
transaction and the Fund's basis in the contract. The Portfolio is subject
to off-balance sheet risk to the extent of the value of the contracts for
purchases of foreign currency and in an unlimited amount for sales of
foreign currency.
D. Foreign Currency Translation -- The books and records of the Portfolio
are maintained in U.S. dollars. Foreign currency amounts are translated
into U.S. dollars at the prevailing exchange rates, or at the mean of the
current bid and asked prices, of such currencies against the U.S. dollar as
quoted by a major bank, on the following basis:
78
<PAGE>
International Equity Portfolio
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
1. Market value of investment securities and other assets and
liabilities: at the rate of exchange at the balance sheet date.
2. Purchases and sales of investment securities, income and expenses:
at the rates of exchange prevailing on the respective dates of such
transactions.
Although the net assets of the Portfolio are presented at the foreign
exchange rates and market values at the close of the periods, the Portfolio
does not isolate that portion of the results of operations arising as a
result of changes in the foreign exchange rates from the fluctuations
arising from changes in the market prices of securities sold during the
year. Accordingly, such realized foreign currency gains (losses) are
included in the reported net realized losses on security transactions.
Reported realized foreign exchange gains or losses arise from disposition
of foreign currency, currency gains or losses realized between the trade
and settlement dates on securities transactions, and the difference between
the amounts of dividends, interest, and foreign withholding taxes recorded
on the Portfolio's books on the transaction date and the U.S. dollar
equivalent of the amounts actually received or paid. Unrealized foreign
exchange gains and losses arise from changes (due to the changes in the
exchange rate) in the value of foreign currency and other assets and
liabilities denominated in foreign currencies which are held at period end.
E. Futures Contracts -- When the Portfolio enters into a futures contract,
it makes an initial margin deposit in a segregated account, either in cash
or liquid securities. Thereafter, the futures contract is marked to market
and the Portfolio makes (or receives) additional cash payments daily to the
broker. Changes in the value of the contract are recorded as unrealized
appreciation/depreciation until the contract is closed or settled.
Index futures contracts are used to control the asset mix of the Portfolio
in the most efficient manner, allowing the Portfolio to adjust country
exposures while incurring minimal transaction costs. Short index futures
contracts are used for hedging purposes, i.e. to reduce the exposure to
equities. Long index futures contracts are used to gain exposure to
equities, when it is anticipated that this will be more efficient than
buying stocks directly.
Use of long futures contracts subjects the Portfolio to risk of loss up to
the nominal value of the contract, use of short futures contracts subjects
the Portfolio to unlimited losses.
The Portfolio may enter into futures contracts only on exchanges or boards
of trade. The exchange or board of trade acts as the counterparty to each
futures transaction, therefore, the Fund's credit risk is limited to
failure of the exchange or board of trade.
As of April 30, 1999, the Portfolio had outstanding futures contracts as
described in the Portfolio of Investments.
F. Security Transactions and Investment Income -- Investment transactions
are accounted for on the trade date (the date the order to buy or sell is
executed). Securities gains and losses are calculated on the identified
cost basis. Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date.
G. Federal Income Taxes -- The Portfolio intends to continue to qualify as
a partnership and therefore net income and net realized gains are taxed to
the partners. Accordingly, no tax provision is recorded by the Portfolio.
The investors in the Portfolio must take into account their proportionate
share of the Portfolio's income, gains, losses, deductions, credits and tax
preference items in computing their federal
79
<PAGE>
International Equity Portfolio
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
income tax liability, without regard to whether they have received any cash
distributions from the Portfolio. The Portfolio does not intend to
distribute to investors its net investment income or its net realized
gains, if any. It is intended that the Portfolio will be managed in such a
way that investors in the Portfolio will be able to satisfy the
requirements of subchapter M of the Internal Revenue Code to be taxed as
regulated investment companies.
2. Fees and Other Transactions with Affiliates
A. Investment Advisory Fee -- Pursuant to an Investment Advisory Agreement,
The Chase Manhattan Bank ("Chase" or the "Advisor") acts as the Investment
Advisor to the Portfolio. Chase is a direct wholly-owned subsidiary of The
Chase Manhattan Corporation. As Investment Advisor, Chase supervises the
investments of the Portfolio and for such services is paid a fee. The fee
is computed daily and paid monthly at an annual rate equal to 1.00% of the
Portfolio's average daily net assets. For the six months ended April 30,
1999, the Advisor voluntarily waived all of its fees for the Portfolio.
Chase Asset Management, Inc. ("CAM"), a registered investment advisor, is
the sub-investment advisor to the Portfolio pursuant to a Sub-Investment
Advisory Agreement between CAM and Chase. CAM is a wholly owned subsidiary
of Chase and is entitled to receive a fee, payable by Chase from its
advisory fee, at an annual rate equal to 0.50% of the Portfolio's average
daily net assets.
B. Custodial Fees -- Chase, as Custodian, provides safekeeping services for
the Portfolio's securities. Compensation for such services are presented in
the Statement of Operations as custodian fees.
C. Administration Fee -- Pursuant to an Administration Agreement, Chase
(the "Administrator") provides certain administration services to the
Portfolio. For these services and facilities, the Administrator receives
from the Portfolio a fee computed at the annual rate equal to 0.05% of the
Portfolio's average daily net assets. For the six months ended April 30,
1999, the Administrator voluntarily waived all of its fees for the
Portfolio.
3. Investment Transactions -- For the six months ended April 30, 1999, purchases
and sales of investments (excluding short-term investments) were as follows:
<TABLE>
<S> <C>
Purchases (excluding U.S. Government) ......... $21,618,635
Sales (excluding U.S. Government) ............. $20,707,117
</TABLE>
The portfolio turnover rate of IEP for the six months ended April 30, 1999, was
89.32%.
80
<PAGE>
International Equity Portfolio
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
4. Open Forward Foreign Currency Contracts -- The following forward foreign
currency contracts were open at April 30, 1999.
<TABLE>
<CAPTION>
Contract Contract Unrealized
Amount Amount Settlement Gain (Loss)
Purchased/(Sold) Sold/(Purchased) Date (USD)
- ------------------------ ------------------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Unrealized Gain
- ---------------
140,000,000 (JPY) 1,095,916 (EUR) 5/13/99 15,817
---------
$ 15,817
=========
Unrealized Loss
- ---------------
1,055,727 (EUR) 140,000,000 (JPY) 5/13/99 (58,355)
1,144,031 (EUR) 780,000 (GBP) 6/8/99 (42,947)
140,000,000 (JPY) 1187,699 (USD) 6/8/99 (7,732)
(139,383,450) (JPY) (1,150,000) (USD) 6/8/99 (24,770)
235,284,000 (JPY) 2,000,000 (USD) 8/5/99 (664)
(236,028,000) (JPY) (2,000,000) (USD) 8/5/99 (5,658)
270,000 (CHF) 177,632 (USD) 5/4/99 (353)
---------
$(140,479)
=========
</TABLE>
- --------------
CHF--Swiss Franc
EUR--Euro
GBP--Great British Pound
JPY--Japanese Yen
USD--United States Dollar
5. Retirement Plan -- The Portfolio has adopted an unfunded noncontributory
defined benefit pension plan covering all independent trustees of the Portfolio
who will have served as independent trustees for at least five years at the time
of retirement. Benefits under this plan are based on compensation and years of
service. Pension expenses for the six months ended April 30, 1999, included in
Trustees Fees in the Statement of Operations, and accrued pension liability
included in other accrued liabilities, in the Statement of Assets and
Liabilities were $238 and $1,193, respectively.
81
<PAGE>
International Equity Portfolio
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
6. Foreign Cash Positions
<TABLE>
<CAPTION>
Net
Market Unrealized
Local Cost Value Gain (Loss)
Currency Currency (USD) (USD) (USD)
- -------------------------------- -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Australian Dollar .............. 2,453 $ 1,565 $ 1,624 $ 59
British Pound Sterling ......... 131,789 212,773 212,299 (474)
Canadian Dollar ................ 1 1 1 --
EURO ........................... 80,080 84,917 84,689 (228)
Greek Drachma .................. 69 -- -- --
Hong Kong Dollar ............... 590 76 76 --
Indonesian Rupiah .............. 961,005 283 119 (164)
Japanese Yen ................... 131,061,074 1,099,243 1,098,768 (475)
Norwegian Krone ................ 2 -- -- --
Philippine Peso ................ 154,056 3,566 4,052 486
Singapore Dollar ............... 2,966 1,789 1,749 (40)
Swedish Krona .................. 2,450,495 295,089 291,005 (4,084)
Swiss Franc .................... 111,518 73,512 73,189 (323)
Thai Baht ...................... 113 118 5
---------- ---------- -------
$1,772,927 $1,767,689 $(5,238)
========== ========== =======
</TABLE>
7. Bank Borrowings -- The Portfolio may borrow money for temporary or emergency
purposes. Any borrowings representing more than 5% of the Portfolio's total
assets must be repaid before the Portfolio may make additional investments. The
Portfolio has entered into an agreement, enabling it to participate with other
Chase Vista Funds in an unsecured line of credit with a syndicate of banks,
which permits borrowings up to $350 million, collectively. Interest is charged
to the Portfolio based on its borrowings at an annual rate equal to the sum of
the Federal Funds Rate plus 0.35%. The Portfolio also pays a commitment fee of
0.075% per annum on the average daily amount of the available commitment, which
is allocated, on a pro-rata basis to the Portfolio. The commitment fee is
included in Other expenses on the Statement of Operations. Borrowings are
payable on demand.
The Portfolio had no borrowings outstanding at April 30, 1999, nor at any time
during the year.
8. Concentrations -- At April 30, 1999, substantially all of the Portfolio's net
assets consist of securities of issuers which are denominated in foreign
currencies. Changes in currency exchange rates will affect the value of and
investment income from such securities.
At April 30, 1999, the Portfolio invested approximately 21.1% of its net assets
in issuers in the United Kingdom. The issuers' abilities to meet their
obligations may be affected by economic or political developments in the
specific region.
82
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
CHASE VISTA INTERNATIONAL EQUITY FUNDS SEMI-ANNUAL REPORT
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.
The financial information in this report has been taken from the books and
records of the funds without examination by independent accountants, who express
no opinion thereto.
To obtain a prospectus for any of the Chase Vista Funds, call 1-800-34-VISTA.
The prospectus contains more complete information, including charges and
expenses. Please read it carefully before you invest or send money.
(C) The Chase Manhattan Corporation, 1999, 2000. All Rights Reserved. June 1999
[CHASE VISTA FUNDS(SM) LOGO]
Chase Vista Funds Fulfillment Center
393 Manley Street
West Bridgewater, MA 02379-1039
